Dec 06, 2021 Audit and Accountability Committee on 2021-12-06 2:00 PM

THEY'RE OUT

[00:00:01]

, THEY'LL SNEAK UP ON YOU.

YEAH.

GREAT.

WELL, UH, LET'S GO AHEAD AND GET STARTED.

UH, THE FIRST THING WE NEED TO DO IS APPROVE THE MINUTES FROM NOVEMBER.

WE NEED TO CALL THE ROLL.

CALL THE ROLL.

OH, YEAH.

CALL THE ROLL.

YES, SIR.

UH, COUNCIL MEMBER MCKEE RODRIGUEZ.

COUNCIL MEMBER PALIS.

CITIZEN.

MEMBER SOTO.

HERE.

CITIZEN MEMBER VINNO.

CHAIR PERRY.

HERE.

CHAIR.

WE HAVE A QUORUM.

ALRIGHT, NOW THAT WE GOT A QUORUM, LET'S GO AHEAD AND GET STARTED HERE.

AND, UH,

[1. Approval of minutes from the Audit and Accountability Committee meeting from November 1, 2021]

AND IF THERE'S ANYBODY THAT COULD GIVE US A MOTION AND A SECOND ON THAT, THAT WOULD BE GREAT.

SO MOVED.

OKAY.

WE'VE GOT A MOTION TO PROVE WITH A SECOND.

ALL THOSE IN FAVOR SAY AYE.

AYE.

A ALL RIGHT.

UM, HEARING NO NOTHING AGAINST IT, WE'LL MOVE FORWARD WITH THE APPROVAL OF THE MINUTES.

UM, IS THERE ANYBODY HERE SIGNED UP TO SPEAK PUBLIC COMMENTS? WE DO NOT HAVE ANY PUBLIC COMMENTS OR, ALL RIGHT.

NOT PUBLIC.

SIGNED UP.

OKAY.

THANK YOU.

UM, WE GOT,

[CONSENT AGENDA]

AND, UM, WOULD LIKE TO ENTERTAIN A MOTION TO APPROVE THAT, UNLESS SOMEBODY WANTS TO PULL SOMETHING FROM THE CONSENT AGENDA.

I'D LIKE TO PULL FIVE.

NUMBER FIVE.

OKAY.

PULL NUMBER FIVE.

THAT'S UP.

I'LL, UH, CAN I GET A MOTION FOR THE CONSENT AGENDA, SIR? GOT A MOTION? GET A SECOND.

SECOND.

ALL RIGHT.

NOBODY ELSE TO GO AGAINST.

WE'RE VOTING FOR THE CONSENT AGENDA.

ARE YOU, ARE YOU IN AGREEMENT WITH THAT? I THINK SEVEN AS WELL, BUT SEVEN NOT ON THERE.

SEVEN IS INDIVIDUAL.

OKAY, PERFECT.

SEVEN IS, YEAH, INDIVIDUAL.

OKAY.

ALL RIGHT, GREAT.

WELL, FOR THOSE ITEMS, TWO THROUGH FOUR, UM, ALL THOSE IN FAVOR SAY AYE.

AYE.

AYE.

AYE.

OKAY, GREAT.

WELL, WE WILL MOVE ALONG THEN, AND LET'S, UH, THAT'S APPROVED.

UH, LET'S GO FOR THE INDIVIDUAL CONSIDERATION.

[6. Briefing on the release of a solicitation for one or more contracts with qualified land trusts or governmental entities to assist the Edwards Aquifer Protection Program with acquisition of properties and conservation easements for aquifer protection in the estimated total value of $1,750,000.00 for 3 years with 2, 1year options to renew. [David W. McCary, Assistant City Manager; Homer Garcia III, Director, Parks and Recreation]]

ITEM NUMBER SIX IS A BRIEFING ON THE RELEASE OF A SOLICITATION FOR ONE OR MORE CONTRACTS WITH QUALIFIED LAND TRUSTS OR GOVERNMENTAL ENTITIES TO ASSIST THE ED EDWARD FER PROTECTION PROGRAM WITH ACQUISITION OF PROPERTIES AND CONSERVATION EASEMENTS FOR AQUIFER PROTECTION IN THE ESTIMATED TOTAL VALUE OF $1,750,000 FOR THREE YEARS WITH TWO ONE YEAR OPTIONS TO RENEW.

ALL RIGHT.

HI.

GOOD AFTERNOON, MR. HOMER.

YES.

UH, MY NAME IS HOMER GARCIA, THE THIRD PARKS DIRECTOR.

AND AS, UH, THE MADAM CLERK POINTED OUT, WE DO HAVE A PRES SOLICITATION BRIEFING TODAY FOR LAND ACQUISITION TEAM SERVICES THAT ACT ON BEHALF OF THE CITY OF SAN ANTONIO PARKS DEPARTMENT IN IDENTIFYING PROPERTIES FOR POTENTIAL PARTICIPATION IN THE EDWARDS AQUIFER PROTECTION PROGRAM.

PHILIP COVINGTON IS A MANAGER THAT DIRECTLY WORKS OVER THAT PROGRAM.

HE WILL PROVIDE THE BRIEFING TODAY.

I'D LIKE TO ALSO ACKNOWLEDGE, UH, GRANT ELLIS, HE IS OUR NATURAL RESOURCES MANAGER.

HE'S IN THE AUDIENCE AS WELL.

SO THE THREE OF US WILL BE ABLE TO ANSWER ANY QUESTIONS, UH, UPON THE CONCLUSION OF PHILLIP'S PRESENTATION.

PHILLIP, THANK YOU.

THANK YOU.

GOOD AFTERNOON, CITY COUNCIL MEMBERS AND MEMBERS OF THE COUNCIL OR THE COMMITTEE? UH, AGAIN, MY NAME'S PHILLIP COVINGTON.

I'M SPECIAL PROJECTS MANAGER FOR THE EDWARDS AQUIFER PROTECTION PROGRAM.

I'M GONNA PROVIDE YOU WITH A BRIEFING ON THE, UH, PROPOSED SOLICITATION FOR LAND ACQUISITION SERVICES FOR THE EDWARDS AQUIFER PROTECTION PROGRAM TODAY.

I'LL START OFF WITH JUST AN OVERVIEW OF THE PROGRAM ITSELF.

UH, DIVE INTO THE, UH, NUTS AND BOLTS OF THE SOLICITATION THAT'S BEING PROPOSED, AND THEN GO OVER SOME OF THE ACCOMPLISHMENTS OF THE PROGRAM.

SO, GETTING STARTED, UH, THIS, UH, EDWARDS AQUIFER PROTECTION PROGRAM, OR WHAT WE CALL THE E A P P WAS CREATED BACK IN 2000, UH, WITH VOTER APPROVAL OF FOUR SEPARATE, UH, PROGRAMS. THEY WERE UNDER THE ONE 8 CENTS SALES TAX TO PROTECT THE EDWARDS AQUIFER'S WATER QUALITY AND QUANTITY THROUGH ACQUISITION OF LAND AND CONSERVATION EASEMENTS OVER THE RECHARGE AND CONTRIBUTING ZONES OF THE EDWARDS AQUIFER.

SO, TO DATE, $325 MILLION HAS BEEN COLLECTED, UH, AND WAS AGAIN, APPROVED BY VOTERS THROUGH PROPOSITIONS THREE IN PROPOSITIONS ONE, TO PROTECT 168,534 ACRES.

TO DATE, WE HAVE, UH, RELEASED TWO PRIOR SOLICITATIONS FOR LAND ACQUISITION TEAM SERVICES FOR THE EDWARDS PROGRAM.

UH, FIRST ONE WAS BACK IN 2011, THE SECOND WAS IN 2016.

AND, UH, SO TO DATE, UH, THE CURRENT PROGRAM WILL BE EXPIRING UPON THE EXPENDITURE OF THE REMAINING BALANCE OF THE 2015 PROP ONE PROGRAM FUNDS.

WE HAVE ABOUT 9.1 MILLION LEFT UNCOMMITTED OUT OF THAT PROGRAM, AND WE'RE ANTICIPATING THAT FUNDING WILL LIKELY

[00:05:01]

THE CURRENT PROGRAM, OR THE CURRENT CONTRACTS ARE BEING HELD BY BEAR LAND TRUST, WHICH IS ALSO KNOWN AS GREEN SPACES ALLIANCE OF SOUTH TEXAS.

OUR OTHER, UH, CONTRACT, UH, PROFESSIONAL SERVICES AGREEMENT IS WITH THE NATURE CONSERVANCY FOR OUR CURRENT, UH, LAND ACQUISITION TEAM.

AND THOSE CONTRACTS HAVE A AGGREGATE VALUE OF 2.5 MILLION.

SO WE'RE CURRENTLY SEEKING QUALIFICATIONS FROM, UH, REGIONAL LAND TRUSTS, OR FROM GOVERNMENTAL ENTITIES WITH THE INTENT OF ENTERING INTO NEW PROFESSIONAL SERVICES AGREEMENTS, UH, UNDER OUR UPCOMING, UH, FUNDING PROGRAM, WHICH WAS APPROVED IN 2020 BY CITY COUNCIL.

AND, UH, IT WAS A 10 YEAR, A HUNDRED MILLION DOLLARS FUNDING PROGRAM, WHICH WILL BE PROVIDED THROUGH THE SAN ANTONIO MUNICIPAL FACILITIES CORPORATION.

SO WE'LL BE, AGAIN, SEEKING ASSISTANCE IN EVALUATING AND, UH, ACQUIRING ADDITIONAL PROPERTIES AND CONSERVATION EASEMENTS LOCATED OVER OUR TARGET AREA, WHICH IS HERE IN BEXAR COUNTY, AS WELL AS OUT IN OUR WESTERN COUNTIES OF MEDINA AND UVALDE OVER THE RECHARGE AND CONTRIBUTING ZONES.

SO THIS WILL BE A REQUEST FOR QUALIFICATIONS.

WE'LL BE SEEKING QUALIFICATIONS FROM EITHER QUALIFIED LAND TRUSTS OR FROM, UH, GOVERNMENTAL ENTITIES.

AND THE PROPOSED TERM OF THESE NEW PROFESSIONAL SERVICES AGREEMENTS OR AGREEMENT WILL BE THREE YEARS WITH TWO ONE YEAR RENEWAL OPTIONS.

THE ESTIMATED VALUE OF THESE AGREEMENTS IS ESTIMATED TO BE 1.75 MILLION, WHICH QUALIFIES IT AS A HIGH PROFILE SOLICITATION.

AND AGAIN, THESE CON OUR CURRENT CONTRACTS WITH THE NATURE CONSERVANCY AND GREEN SPACE'S ALLIANCE WILL TERMINATE UPON THE EXPIRATION OF THE 2015 PROP ONE PROGRAM, WHICH AGAIN, IS ANTICIPATED IN EARLY FISCAL YEAR 2023.

SO WE'RE SEEKING RESPONSES AGAIN FROM LAND TRUSTS OR GOVERNMENTAL ENTITIES.

THE REASON WHY WE NEED, UH, A LAND TRUST OR A GOVERNMENTAL ENTITY IS THESE ARE THE ONLY ENTITIES QUALIFIED UNDER CHAPTER 180 3 OF THE TEXAS NATURAL RESOURCES CODE AND I R S SECTION ONE 70 SUBSECTION H TO, UH, BE ABLE TO PURCHASE AND HOLD A CONSERVATION EASEMENT.

SO WE'RE GONNA BE LOOKING FOR, UM, EXPERIENCED TRUSTS OR GOVERNMENTAL ENTITIES THAT CAN ASSIST US IN PRIORITI PRIORITIZING ACQUISITIONS WITHIN THE, UH, EDWARDS TARGET AREA, AND ASSIST US IN UPDATING OUR G I S SPATIAL MODEL, WHICH ALLOWS US TO INITIALLY RANK PROPERTIES WE'RE CONSIDERING UNDER THIS PROGRAM.

WE'RE ALSO LOOKING FOR, UH, ENTITIES THAT CAN ASSIST US IN, UH, ESTABLISHING AND MAINTAINING PROFESSIONAL RELATIONSHIPS WITH LANDOWNERS THAT HAVE PROPERTY WITHIN OUR TARGET AREA FOR CONSIDERATION AND PARTICIPATION IN THIS PROGRAM.

THEY'LL ALSO BE COORDINATING AND CONDUCTING DUE DILIGENCE ON BEHALF OF, UH, THE EDWARDS AQUIFER PROTECTION PROGRAM AND ATTENDING MONTHLY CONSERVATION ADVISORY BOARD MEETINGS AND PLANNING MEETINGS TO PROVIDE UPDATES ON THEIR, UH, CURRENT PROJECTS THAT WE'RE WORKING ON.

THIS IS JUST A HIGH LEVEL OVERVIEW OF OUR DUE DILIGENCE PROCESS AND HOW WE CONSIDER, UH, PROPERTIES UNDER THE EDWARDS AQUIFER PROTECTION PROGRAM.

WE INITIALLY START BY EVALUATING PROJECTS WITHIN OUR G I S SPATIAL MODEL, AND THAT EVALUATES PROPERTIES BASED ON KNOWN, UH, GEOLOGICAL FEATURES, UH, THE LOCATION, WHETHER IT'S LOCATED ADJACENT TO ANY PROTECTED PROPERTY THAT WE HAVE IN OUR INVENTORY, THE SIZE OF THE PROPERTY, AND ENCY TO, UH, WATERSHEDS AND KEY RECHARGE FEATURES.

IF A PROPERTY DOES RANK WELL IN OUR MODEL, THEN WE'LL MOVE FORWARD WITH, UH, PRESENTING THE OPPORTUNITY TO PROTECT A PROPERTY, EITHER THROUGH ACQUISITION OF THE PROPERTY AND FEE, OR PAYING OUTRIGHT FOR THAT PROPERTY OR PURCHASING A CONSERVATION EASEMENT FROM THE LANDOWNER.

THIS IS WHAT WE CALL STAGE ONE DUE DILIGENCE.

WHEN WE GO TO THE CONSERVATION ADVISORY BOARD, INITIALLY, WE'LL REQUEST STAGE ONE, WHICH INVOLVES ORDERING A GEOLOGICAL ASSESSMENT TO IDENTIFY KEY RECHARGE FEATURES ON THE PROPERTY, UM, IDENTIFY THE WATERSHED IN WHICH THE PROPERTY IS LOCATED, AND ULTIMATELY, UH, DETERMINE WHAT THE BENEFIT TO THE CITY WOULD BE IN TERMS OF AQUIFER RECHARGE, QUALITY, AND QUANTITY IF THAT PROPERTY IS PROTECTED THROUGH THIS PROGRAM.

AND WE'LL ALSO ORDER A, AN APPRAISAL TO DETERMINE THE FAIR MARKET VALUE OF THE PROPERTY, AS WELL AS THE VALUE OF THAT CONSERVATION EASEMENT.

ONCE THAT, UM, PROCESS IS COMPLETED, WE'LL COME BACK FOR STAGE TWO DUE DILIGENCE REQUEST TO THE CAB, AND WE'LL PROVIDE AN UPDATE ON HOW EVERYTHING WENT WITH STAGE ONE.

THE STAGE TWO DUE DILIGENCE PROCESS INVOLVES ORDERING A PROPERTY SURVEY TO DETERMINE THE BOUNDARY OF THE CONSERVATION EASEMENT, AND ALSO ORDERING, UH, ENVIRONMENTAL ASSESSMENT REPORTS TO IDENTIFY ANY ENVIRONMENTAL CONCERNS WE NEED TO KNOW ABOUT AND REMEDIATE BEFORE WE ACQUIRE THAT EASEMENT OR PROPERTY.

ONCE THE DUE SEC, UH, SECOND STAGE OF DUE DILIGENCE IS COMPLETED, THEN WE WILL MOVE FORWARD TO THE CONSERVATION ADVISORY BOARD REQUESTING FINAL APPROVAL TO GO FORWARD FOR CITY COUNCIL CONSIDERATION OF THAT EASEMENT OR PROPERTY.

SO HERE'S JUST A HIGH LEVEL OVERVIEW OF THE SOLICITATION.

UH, IT FELL UNDER 9 1 8 8 9 OF

[00:10:01]

UH, IT FALLS UNDER REAL ESTATE AND LAND CONSULTING SERVICES.

WE DID, UH, IDENTIFY 55 VENDORS WITHIN THE VENDOR REGISTRY, HOWEVER, THOSE WERE NOT LAND TRUSTS OR GOVERNMENTAL ENTITIES QUALIFIED TO PROVIDE THESE SERVICES.

SO WE HAVE IDENTIFIED 21 REGIONAL LAND TRUSTS THAT WE WILL BE REACHING OUT TO, TO MAKE THEM AWARE OF THIS OPPORTUNITY ONCE THE SOLICITATION IS, UH, PREPARED TO BE RELEASED.

AND WE'VE ALSO IDENTIFIED FIVE LOCAL, UH, GOVERNMENT ORGANIZATIONS THAT WOULD ALSO, UH, TECHNICALLY BE, UH, IN A POSITION TO ASSIST WITH THESE SERVICES IF THEY SO DESIRE.

WE WOULD BE ADVERTISING, OF COURSE, ON TV S A CHANNEL 21, UH, ALSO ON THE CITY'S BIDDING OPPORTUNITIES WEBSITE, AS WELL AS THE CITY'S PARKS.

AND, UH, THE E A P P WEBSITE.

AND THEN ADVERTISING IN THE HEARTBEAT AND THE SAN ANTONIO EXPRESS NEWS.

WE HAVE IDENTIFIED FIVE EVALUATION MEMBERS FOR THIS PARTICULAR SOLICITATION.

THE FIRST BEING DR.

FRANCINE ROMERO.

SHE IS OUR CONSERVATION ADVISORY BOARD CHAIR.

AND THEN MELINDA SERTA, OUR ASSISTANT DIRECTOR WITH THE PARKS DEPARTMENT.

AND GRANT ELLIS, WHO'S HERE TODAY, OUR NATURAL RESOURCES MANAGER, UH, KAREN BISHOP, OUR SENIOR SUPERVISOR, WHO WE DO QUITE A BIT OF WORK WITH ON OUR, UH, WATER QUALITY DEMONSTRATION PROJECTS.

AND THEN THOMAS MARSIA, THE, UH, AQUIFER PROTECTION MANAGER THAT ASSISTS US, UH, THROUGH THE EDWARDS AQUIFER AUTHORITY, UH, ON MONITORING OUR CONSERVATION EASEMENTS.

SO THE EVALUATION CRITERIA FOR THE SOLICITATION, UM, EXPERIENCE, BACKGROUND AND QUALIFICATIONS WOULD MAKE UP 40% OF THE TOTAL POINTS.

PROPOSED MANAGEMENT PLAN WOULD BE ANOTHER 40 POINTS, AND THEN SPECIFIC EXPERIENCE IN THE SAN ANTONIO REGION AND THEIR PAST WORKING, UH, RELATIONSHIP WITH THE CITY OF SAN ANTONIO WILL MAKE UP THE FINAL 20 POINTS.

THIS PROJECT DID QUALIFY FOR A, UH, A SPATA, UH, WAIVER.

SO PROJECT TIMELINE, AGAIN, WE'RE HERE TODAY WITH THE AUDIT, UH, COMMITTEE, UH, PROVIDING THE PRESELI PRE PRES SOLICITATION BRIEFING.

WE'RE ANTICIPATING A RELEASE DATE OF JANUARY 21ST WITH YOUR APPROVAL OF THIS, UH, SOLICITATION.

UH, MOVING FORWARD, WE WOULD, UH, HOLD A PRE-SUBMIT SUBMITTAL CONFERENCE ON FEBRUARY 7TH, FEBRUARY 7TH, AND DEADLINE FOR QUESTIONS THE FOLLOWING WEEK ON FEBRUARY 14TH AND A DUE DATE OF MARCH 7TH.

WE WOULD THEN SPEND, UH, THE BULK OF MARCH AND APRIL, UH, EVALUATING THE PROPOSALS AND THEN, UH, NEGOTIATING CONTRACTS OR A CONTRACT, WHAT, UH, DEPENDING ON WHAT THE EVALUATIONS, UH, COMMITTEES, UH, CHOOSES.

AND THEN, UH, POST SOLICITATION BRIEFING WOULD BE TENTATIVELY SCHEDULED ON MAY THE 25TH.

HERE AGAIN, WE WOULD THEN, UH, PROPOSE COUNCIL CONSIDERATION ON JUNE 7TH OR JUNE 2ND, AND THEN HAVING THE CONTRACTS BEGIN ON JUNE THE FIRST, OR, UH, JANUARY 1ST, 2023, TO COINCIDE WITH THE BEGINNING OF THE NEW FUNDING PROGRAM WITH THE SAN ANTONIO MUNICIPAL FACILITIES CORPORATION.

ACCOMPLISHMENTS TO DATE.

WITH THE E A P P, WE HAVE ACQUIRED 105 CONSERVATION EASEMENTS, AND WE HAVE PROTECTED AN ADDITIONAL 23 PROPERTIES THROUGH FEE.

SIMPLE ACQUISITION.

UH, AS YOU'LL SEE ON THE TABLE, UH, TOWARDS THE BOTTOM OF THIS SLIDE, THE CONSERVATION EASEMENTS MAKE UP ABOUT 95% OF OUR PORTFOLIO, AND THAT'S BECAUSE WE GET SO MUCH MORE BANG FOR OUR BUCK BY PROPERTIES REMAINING WITH PRIVATE OWNERS.

THEY CAN BE MANAGED AND MAINTAINED WITHOUT, UH, THE CITY'S, UH, NEEDING TO ALLOCATE FUNDS IN ORDER TO MANAGE THOSE PROPERTIES.

BUT WE DO HOLD THE CONSERVATION EASEMENT AND WE GO OUT ON AN ANNUAL BASIS TO MONITOR, TO ENSURE THAT, UH, THE LANDOWNERS ARE IN COMPLIANCE WITH THOSE EASEMENTS.

WE HAVE COMMITTED TO DATE, UH, 316 MILLION OUT OF THE 325 MILLION THAT'S BEEN APPROVED BY VOTERS AND, UH, COLLECTED IN FULL.

SO WE HAVE ABOUT $9 MILLION REMAINING FOR ADDITIONAL, UH, ACQUISITIONS UNDER THE 2015 PROP ONE PROGRAM.

AND AGAIN, WE PROTECTED, UH, 168,534 ACRES TO DATE.

UH, SOME OF THE COUNCIL MEMBERS MAY RECALL, WE RECENTLY RECEIVED APPROVAL FOR TWO LARGE CONSERVATION EASEMENTS, WHICH WILL BE CLOSING, UH, LATER THIS MONTH.

AND THAT WILL BOOST US, UH, OVER THE 170,000 ACRE THRESHOLD, UH, BY THE END OF THE CALENDAR YEAR.

SO MOVING FORWARD, OUR STRATEGIES FOR THE PROGRAM, PARTICULARLY UNDER THE NEW, UH, FUNDING PROGRAM, WILL CONTINUE TO TARGET PROPERTIES, UH, WITHIN THE, UH, E A P P TARGET AREA, SPECIFICALLY OVER THE RECHARGE AND CONTRIBUTING ZONES.

WE ARE LOOKING AT, UH, UH, KEY WATERSHEDS WITHIN OUR TARGET AREA, AND PARTICULARLY UP INTO THE CONTRIBUTING ZONE BECAUSE WE'RE, UH, LEARNING MORE AND MORE EACH DAY ABOUT THE IMPORTANCE OF THE, UH, WATER FLOWING DOWN FROM THE CONTRIBUTING ZONE INTO THE RECHARGE ZONE.

SO WE WANNA MAKE SURE THAT WE'RE PROTECTING THOSE, UH, WATERSHEDS AND THE CONTRIBUTING ZONE BEFORE THAT WATER MAKES ITS WAY DOWN INTO THE RECHARGE AREA.

AND WE WILL CONTINUE TO WORK TO, UH, CONTINUE, UH, PROTECTING EXISTING PROPERTIES.

AND WE'RE LOOKING FOR ANY OPPORTUNITIES TO BE ABLE TO TIE, UH, GAPS BETWEEN OUR PROTECTED AREAS.

SO, UM, ANYWAY, THAT CONCLUDES

[00:15:01]

I'LL BE HAPPY TO ANSWER ANY QUESTIONS.

GREAT.

THANK YOU VERY MUCH.

I JUST GOT A COUPLE OF QUESTIONS.

I STILL A LITTLE FUZZY ABOUT THE, THE NUMBERS HERE.

UH, YOU SHOWED WHAT YOU'VE DONE IN THE PAST, AND I THINK YOU'VE SPENT, UH, YOU SAID YOU SPENT 316 MILLION OUT OF THE 325 AVAILABLE.

SO, UM, THOSE, THAT DOLLAR FIGURE, THAT REMAINING AMOUNT IS COVERED UNDER A CURRENT CONTRACT.

THAT'S CORRECT.

THE, UH, THE REMAINING 9 MILLION IS, OR HAS ALREADY BEEN COLLECTED FROM THE SALES TAX.

RIGHT.

AND SO THAT IS IN THE, THAT IS IN THE COFFERS AND AVAILABLE FOR US TO, UH, PROCEED WITH ADDITIONAL ACQUISITIONS.

OKAY.

BUT THAT'S BEING HANDLED BY A PREVIOUS CONTRACT THAT WAS LED, UH, FOR THE LAND ACQUISITION TEAM SERVICE? CORRECT.

OKAY.

WE HAVE THOSE IN PLACE.

THOSE ARE, UH, CURRENT THROUGH THE, UH, REMAINING BALANCE OF THE 2015 PROPOSITION ONE PROGRAM.

OKAY.

AND THEN THIS CONTRACT THAT YOU'RE WANTING TO PUT OUT ON THE STREET IS FOR HOW MUCH MONEY? AGAIN, WE ARE, UH, PROPOSING 1.75 MILLION AGGREGATE VALUE.

SO WHETHER IT'S WITH ONE, UH, ONE ORGANIZATION OR MULTIPLE ORGANIZATIONS, ALL TOTAL, WE'RE PROPOSING 1.75 MILLION.

OKAY.

SO WHERE IS THIS MONEY COMING FROM? THE ONE POINT THAT THAT FUNDING WILL BE, UM, APPROPRIATED ON AN ANNUAL BASIS THROUGH FUTURE, UH, FISCAL, FISCAL BUDGET CYCLES.

AND SO IT'LL BE COMING FROM THE SAN ANTONIO MUNICIPAL FACILITIES CORPORATION, WHICH IS THE 10 YEAR A HUNDRED MILLION DOLLARS PROGRAM THAT I REFERENCED THAT WAS APPROVED BY CITY COUNCIL IN SEPTEMBER OF 2020.

SO THAT MONEY IS COMING OUT OF OUR GENERAL FUND.

YEAH, THAT'S CORRECT.

WE, SO EACH BUDGET YEAR FROM HERE ON OUT FOR THE NEXT 10 YEARS WILL COME OUT OF OUR GENERAL FUND ABOUT $10 MILLION A YEAR.

IS THAT WHAT WE'RE SAYING HERE? SO COUNCIL, IF YOU RECALL, WE, UM, WE PROPOSED A ALTERNATIVE FINANCING STRATEGY TO YOU ALL ABOUT, UH, YEARS AGO THAT ESSENTIALLY SAID WE WOULD DO A HUNDRED MILLION DOLLARS OVER ROUGHLY 10 YEARS.

AND, UH, THAT INCLUDED THE ISSUANCE OF DEBT.

SORRY, YOU HEAR ME NOW? YES.

UM, TO COUNCIL, WE HAD PROPOSED AN ALTERNATIVE FUNDING STRATEGY FOR THE COUNCIL, UM, BACK ABOUT A YEAR AND A HALF OR TWO YEARS AGO THAT INCLUDED THE ISSUANCE OF DEBT THROUGH A MUNICIPAL FACILITIES CORPORATION, A HUNDRED MILLION DOLLARS, UH, OVER A PERIOD NOT TO EXCEED 10 YEARS.

SO ROUGHLY $10 MILLION A YEAR.

UM, SO THE IMPACT THAT THE GENERAL FUND WOULD BE LESS THAN THAT BECAUSE WE WOULD BE ISSUING LONG-TERM DEBT.

THAT DEBT IS SECURED WITH A, UM, PLEDGE OF, OF REVENUES THAT WE RECEIVE FROM SAS.

UM, THAT'S THE SECURITY FOR THE BOND HOLDERS THAT ALSO CREATED THE ABILITY FOR US, US TO ISSUE DEBT FOR, UM, UH, CONSERVATION EASEMENTS OR FOR THE EDWARDS PROGRAM.

UH, BUT WE'LL BE USING GENERAL FUND DOLLARS TO REPAY THAT DEBT.

AND THAT'S WHAT WE PROJECTED.

SO THE, THE INITIAL PROJECTIONS, IF I REMEMBER RIGHT, ARE SOMEWHERE AROUND, YOU KNOW, THE FIRST COUPLE YEARS, MAYBE A HALF A MILLION TO A MILLION, AND THEN THAT WILL GROW OVER TIME AS WE CONTINUE TO SUPPORT THE PROGRAM.

AND THE SAWS REVENUE THAT WE INCREASED, WE INCREASED THE PERCENTAGE COMING FROM SAWS.

RIGHT.

UH, SEVERAL YEARS AGO WE INCREASED THE PERCENTAGE FROM 2.7% TO 4% OKAY.

AS OUR RETURN FOR OWNERSHIP OF SAWS.

OKAY.

SO, AND THAT'S OUR BACKING FOR THIS, THAT IS A SECURITY FOR THE BONDS THEMSELVES BECAUSE THAT ALLOWS US TO, UH, ONE, CREATE A SECURITY INTEREST FOR THE BOND HOLDERS, WHICH IS IMPORTANT FROM A CREDIT PERSPECTIVE.

UM, BUT ALSO UNDER STATE LAW CREATES STABILITY FOR US TO ISSUE DEBT FOR THIS PROGRAM.

UM, WHAT WE'RE ACTUALLY GONNA BE USING IS JUST GENERAL FUND DOLLARS AT THE END OF THE DAY.

RIGHT.

'CAUSE THEIR PERCENTAGE JUST GOES INTO THE GENERAL FUND.

THAT'S CORRECT.

POT.

OKAY.

ALRIGHT.

UM, SO WHEN WILL WE BE FINISHED WITH THE CURRENT CONTRACTS AND WHY DIDN'T WE JUST EXTEND THESE CURRENT CONTRACTS? THE PART OF THE, WELL, THE FIR TO ANSWER THE FIRST PART OF YOUR QUESTION, THESE EXISTING, UH, THE CURRENT CONTRACTS WITH BEAR LAND TRUST AND THE NATURE CONSERVANCY WILL EXPIRE, UH, AT THE END OF THE 2015 FUNDING PROGRAM OR PROPOSITION ONE FUNDING PROGRAM, WHICH IS ANTICIPATED TO BE, UH, AT THE BEGINNING OF FISCAL YEAR 2023, PROBABLY QUARTER ONE.

AND THE REASON WHY WE'RE, UH, NOT EXTENDING THESE IS BECAUSE THE FUNDING PROGRAM IS COMPLETELY DIFFERENT FROM THE SALES TAX.

SO WE FELT LIKE IT WAS, UH, PRUDENT TO MOVE FORWARD WITH A NEW SOLICITATION.

AND SINCE IT'S BEEN EFFECTIVELY FIVE YEARS SINCE WE LAST ISSUED A SOLICITATION, WE FELT IT MADE SENSE TO OFFER, UH, OFFER THE OPPORTUNITY FOR OTHER LAND TRUSTS, UH, AND OTHER GOVERNMENTAL ENTITIES THAT MAY HAVE AN INTEREST IN SUPPORTING THE PROGRAM, UH, TO BE ABLE TO THROW THEIR HAT IN THE RING.

OKAY.

OKAY.

UM, YEAH, WE'VE BEEN, UM, TALKING ABOUT MAKING THESE FIVE YEAR TYPE CONTRACTS AND WITH THAT, SO YEAH, THIS SOUNDS GOOD TO ME.

UM, NOW I, I,

[00:20:01]

OKAY.

OKAY, GREAT.

UM, ALRIGHT.

AND COUNSEL, WE'LL BE COMING BACK TO THE COUNCIL.

SO THAT ACTUALLY SET UP THE, UM, THE PROGRAM.

THERE ARE SOME THINGS THAT WE NEED TO EXECUTE AND PUT IN PLACE TO SUPPORT THAT, UH, ISSUANCE OR WE'RE GONNA BE DOING SHORT-TERM DEBTS, SO WE'LL BE COMING BACK TO THE COUNCIL PROBABLY, PROBABLY SUMMER OF THIS YEAR, UM, UH, OF THE UPCOMING FISCAL YEAR, UM, TO APPROVE, ASK FOR APPROVAL ON THOSE DOCUMENTS AS WELL.

OKAY.

ALRIGHT.

GREAT.

WELL THAT'S ALL MY QUESTIONS.

DO WE HAVE ANY OTHER QUESTIONS ON THIS ONE? EVERYBODY GOOD? OKAY.

THIS WAS OKAY.

THIS WAS JUST A BRIEFING, SO, UH, THANK YOU VERY MUCH.

THANK YOU.

APPRECIATE, APPRECIATE IT, APPRECIATE INFORMATION.

AND THE REASON WE WANT, WHY I THOUGHT THIS WAS IMPORTANT TO HIGHLIGHT IS BECAUSE THIS, THIS IS A BIG THING TO SAN ANTONIO.

ABSOLUTELY.

AND WE NEED TO KEEP THIS OUT IN FRONT OF EVERYBODY AS TO WHAT WE'RE DOING.

YOU KNOW WHERE WE'RE GOING AND YOU KNOW, WHAT THE PLANS ARE AND WHERE THE MONEY IS COMING FROM TO SUPPORT THESE ALSO.

SO THANK YOU VERY MUCH.

APPRECIATE IT.

THANK YOU.

APPRECIATE YOUR SUPPORT.

YES, SIR.

UH, NOW WE'LL GO ON TO ITEM NUMBER.

I KNOW WE HAVE ITEM NUMBER FIVE, BUT I'LL LET THAT TILL LAST HERE.

LET'S GO FOR ITEM NUMBER SIX.

NO

[7. Approval to proceed with scheduling two homeownership housing development agreements and five rental housing development funding agreements, in the estimated total value of $9,000,000.00 for a period of 520 years. [Lori Houston, Assistant City Manager; Veronica R. Soto, Director, Neighborhood and Housing Services Department]]

WAS THAT RIGHT? MM-HMM.

.

YEP.

ITEM NUMBER SEVEN IS APPROVAL TO PROCEED WITH THE SCHEDULING, WITH SCHEDULING TWO HOME OWNERSHIP HOUSING DEVELOPMENT AGREEMENTS, AND FIVE RENTAL HOUSING DEVELOPMENT FUNDING AGREEMENTS.

AND THE ESTIMATED TOTAL VALUE OF $9 MILLION FOR A PERIOD OF FIVE TO 20 YEARS.

ALRIGHT, I THINK WE PROBABLY HAVE IT.

THERE WE GO.

I DIDN'T SEE YOU SNEAK UP THERE, BUT YOU GOT A PRESENTATION FOR US.

YES SIR, WE DO.

THANK YOU DARL.

UM, YES, GOOD AFTERNOON.

VERONICA SOTO WITH THE NEIGHBORHOOD AND HOUSING SERVICES DEPARTMENT.

SO WHAT I'M GONNA DO TO TODAY IS GIVE YOU THE POST SOLICITATION BRIEFING FOR TWO ITEMS. UM, THEY'RE ROLLED INTO ONE BECAUSE IT'S GAP FUNDING, BUT IT'S GAP FUNDING FOR HOME OWNERSHIP AS WELL AS FOR RENTAL, UH, FUNDING.

AND THIS IS ALL SOURCED OUT OF OUR HUD GRANTS, THE HOME AND C D B G PROGRAM.

AND SO THAT IS LIMITED TO FAMILIES AT OR BELOW 80% OF THE AREA MEDIAN INCOME.

SO I, I'LL START WITH THE HOMEOWNER.

HOME OWNERSHIP HOUSING DEVELOPMENT.

WANT TO ACKNOWLEDGE THAT BOTH VERONICA GARCIA, OUR DEPUTY DIRECTOR AND OUR INTERIM GRANTS ADMINISTRATOR, CHRIS LASSER, ARE HERE.

THANK YOU FOR HELPING PUT THIS, UH, PRESENTATION TOGETHER FOR US.

SO THE SOLICITATION WAS FOR AN R F P AND 3.4 MILLION IS THE ESTIMATED VALUE FOR THE HOME OWNERSHIP PORTION OF THE R F P.

WHAT WE DO WITH THESE SOLICITATIONS IS THAT WE ASK DEVELOPERS FOR, FOR BOTH FOR-PROFIT AND NOT-FOR-PROFIT TO SUBMIT THEIR, UM, SOLICITATION RESPONSES AND BASED ON WHAT THEY SUBMIT, THAT'S THE TERM.

AND SO AGAIN, WE ARE LOOKING AT AFFORDABLE SINGLE FAMILY HOME OWNERSHIP.

HOUSING DEVELOPMENT FUNDING IS LIMITED TO BENEFIT FAMILIES AT OR BELOW 80% OF THE AREA MEDIAN INCOME.

AND THERE ARE MULTIPLE AGREEMENTS THAT WE'RE ABLE TO ENTER INTO GIVEN THE AMOUNT THAT WE HAVE.

SO THERE'S AN AFFORDABILITY COVENANT ON THESE PROPERTIES, AND IT'S BASED ON THE INVESTMENT PER UNIT.

THE MAXIMUM IS 15 YEARS THAT THE HOMEOWNERSHIP HOMEOWNER UNIT HAS TO BE AFFORDABLE IF WE EXPEND MORE THAN $40,000 ON THAT UNIT.

BUT IT VARIES BY HOW MUCH INVESTMENT WE PUT INTO THIS.

SO THERE ARE THOSE RESTRICTED COVENANTS THAT PROTECT THE CITY'S INVESTMENT AND KEEP THIS AFFORDABLE FOR A LONG TERM.

SO THAT'S THE OVERVIEW OF THE SOLICITATION.

WITH REGARDS TO HOW WE SCORED, WE DID COME BEFORE THIS BODY BACK IN AUGUST WITH THE CRITERIA THAT YOU SEE IN FRONT OF YOU.

I MENTIONED THAT WE MAKE MULTIPLE, UH, AWARDS.

AND SO THERE WERE TWO SUBMITTALS AND BOTH OF THEM ARE RECOMMENDED FOR FUNDING.

YOU CAN SEE THE SOLICITATIONS, VENDOR A, VENDOR B, AND THE CRITERIA INCLUDE EXPERIENCE AND CAPACITY, THE PROJECT READINESS.

WITH THESE FUNDS, WE HAVE TO BE SURE THAT WE'RE READY TO GO IN SIX TO NINE MONTHS SO THAT THE FUNDS ARE NOT SOMETHING THAT WE HOLD ONTO.

AND THE DEVELOPER CAN START.

WE LOOKED AT THE PROJECT SITE CHARACTERISTICS AND THE AMENITIES PROVIDED.

WE LOOK AT, UH, ENSURING THAT THEY MEET THE REGULATORY CONDITIONS FOR HUD, THAT THEY'RE USING EFFICIENT USE OF FUNDS.

THIS FUNDING IS THE LAST ONE IN AS GAP FUNDING.

AND THEN OF COURSE, WE LOOK AT UNDERWRITING THAT IT ALSO HAS TO MEET THE HUD CRITERIA WITH REGARDS TO HAVING A FOLKS WHO INVITED TO, UM, TO GO AHEAD AND, UH,

[00:25:01]

AND THEN BESIDES WHAT FINANCED US, WE ALSO HAD 184, UH, INDIVIDUAL PRIOR APPLICANTS THAT OUR DEPARTMENT REACHED OUT TO.

SO AGAIN, WE ARE RECOMMENDING TWO HOMEOWNERSHIP AWARDS.

THE NEXT STEP FOR THE PROCESS IS FOR US TO GO TO THE PLANNING AND COMMUNITY DEVELOPMENT COMMITTEE AND THEN TO CITY COUNCIL.

THAT'LL BE IN JANUARY AND IN FEBRUARY.

SO AGAIN, THIS IS THE VENDORS THAT, UM, RESPONDED.

WE HAD TWO RESPONDENTS, EVEN THOUGH WE DID A VERY WIDE OUTREACH AND INDIVIDUAL OUTREACH FOR PRIOR APPLICANTS.

AND THAT'S THE HOME OWNERSHIP.

SO NOW I'LL SHIP TO GAP FUNDING FOR AFFORDABLE RENTAL HOUSING DEVELOPMENT.

AGAIN, THIS IS SOURCED OUT OF OUR HUD GRANTS.

SO WE HAD SET BOTH HOME AND C D B G FUNDING ASIDE TO HAVE AFFORDABLE MULTI-FAMILY RENTAL RESIDENTIAL DEVELOPMENTS.

SO THIS CAN BE USED FOR LAND ACQUISITION, NEW CONSTRUCTION AND REHAB OF EXISTING RENTAL HOUSING.

AND AGAIN, IT'S LIMITED TO, UH, FAMILIES THAT ARE AT OR BELOW, UH, 60% A M I IN THIS ASSISTANCE.

SO WE DID HAVE A FOCUS ON 60%.

A M I EVEN THOUGH HAD ALLOWS US TO GO UP TO 80% A M I AND WE HAD A FOCUS ON UNITS AT 30% A M I.

SO MORE POINTS WERE AWARDED IN OUR SCORING FOR UNITS FOR DEVELOPMENTS THAT HAD UNITS AT THAT A M I, AGAIN, THIS WAS AN R F P SOURCED FROM OUR HOME AND C T B G PROGRAM, ABOUT 4 MILLION, UM, BEING, UH, PROPOSED FOR THIS.

AND AGAIN, THE TERM WILL ALSO HAVE A RESTRICTED COVENANT AND AN AFFORDABILITY PERIOD DEPENDING ON THE AWARD.

AND FOR THIS PROGRAM, FOR NEW CONSTRUCTION, WE ALWAYS ASK FOR 20 YEARS OF THAT AFFORDABILITY PERIOD.

AND IF IT'S REHAB OR ACQUISITION OR EXISTING, UH, HOUSING, IT DEPENDS.

THE AFFORDABILITY PERIOD DEPENDS ON HOW MUCH OUR INVESTMENT PER UNIT IS.

SO AGAIN, MULTIPLE AWARDS ARE SUBMITTED FOR THIS PARTICULAR, UM, SOLICITATION.

WE HAD SEVEN, UM, RESPONSES.

YOU CAN SEE THAT WE'RE RECOMMENDING FIVE BE FORWARDED.

AND AGAIN, WE LOOKED AT THE CRITERIA AND WHAT DROVE OUR DECISION WITH REGARDS TO WHO TO AWARD WAS THE READINESS.

UM, SO THE ONES NOT BEING RECOMMENDED ARE ONES THAT WERE NOT AS READY AS OTHERS.

ONE OF THEM HAD NOT SECURED ADDITIONAL FUNDING YET.

UM, AND SO WE KNEW WE WOULD NOT BE THE LAST ONES IN BECAUSE THEY HADN'T RECEIVED SOME OF THE FUNDING THAT THEIR PRO FORMA SHOWED.

BUT YOU CAN SEE THE SCORING FOR THE VENDORS THAT ARE, UM, PART OF WHAT WE'RE CONSIDERING.

AND AGAIN, WE GO TO THE PLANNING AND COMMUNITY DEVELOPMENT COMMITTEE IN JANUARY AND THEN TO CITY COUNCIL IN FEBRUARY.

BUT THIS IS THE RECOMMENDED AWARD, UH, FOR MULTIPLE VENDORS USING THE CRITERIA THAT WE CAME AND SHARED WITH YOU BACK IN AUGUST WHEN WE DID OUR PRES SOLICITATION BRIEFING.

AND IT'S THE SAME, UH, CRITERIA AS WITH THE HOMEOWNERSHIP GAP FUNDING.

SO THIS SHOWS WHERE THE VENDORS STOOD AND THE AMOUNTS RECOMMENDED FOR AWARD AS WELL.

SO YOU CAN SEE THE AMOUNTS, UH, IN FRONT OF YOU AND THE FUNDING SOURCES THERE.

AND HERE'S THE UNIT MIX.

'CAUSE WE LOOK AT THE INCOME, UH, AS WELL AND HOW MANY UNITS ARE PROPOSED AT EVERY A M I DUE DILIGENCE.

AGAIN, WE HAD OVER 2000 INVITEES NOTIFIED ABOUT THE SOLICITATION.

AND IN ADDITION TO THAT, AND H SS D REACHED OUT TO ALL FOLKS WHO HAVE ASKED FOR GAP FUNDING, UH, TO INVITE THEM TO SUBMIT A RESPONSE TO THE R F P.

AND THAT CONCLUDES THE PRESENTATION AND HAPPY TO ANSWER ANY QUESTIONS.

THANK YOU.

THANK YOU FOR, UM, UM, BRINGING THESE, UM, PROJECTED AWARDS HERE.

I DO HAVE A COUPLE OF QUESTIONS HERE.

THE, ON THE, UH, FIRST ONE YOU SHOW RECOMMENDING, UH, VENDOR A AND VENDOR B, AND THOSE WERE, WERE PRETTY CLOSE TO, PRETTY CLOSE TO EACH OTHER AS FAR AS TOTAL SCORING.

UH, DOWN ON THE BOTTOM OF THAT, ON THAT, LET'S SEE WHAT PAGE, WELL, I DON'T SEE WOULD BE SLIDE THREE.

LEMME SEE.

YEAH, PAGE, UH, SLIDE NUMBER THREE WHERE IT SHOWS THAT, UH, THEY WERE RELATIVELY CLOSE AS FAR AS TOTAL SCORING.

UM, THEN I GO TO, UM, THE, UM, SLIDE NUMBER FOUR WHERE IT SHOWS VENDOR A AND VENDOR B

[00:30:01]

YOU HAVE, THAT'S ABOUT 2,000,054 UNITS, UM, AND OVER 10 YEARS.

AND THEN VENDOR B IS ONLY NINE UNITS FOR 10 YEARS.

I'M TRYING TO, YOU KNOW, THAT DOESN'T SOUND LIKE A LOT, BUT IS THAT JUST FOR ONE YEAR OR FOR THE, FOR THE 20 YEAR PERIOD? SO AGAIN, OUR AWARDS ARE, UM, BASED, THE, THE AFFORDABILITY COVENANT IS BASED ON THE AWARD THAT'S PROVIDED FOR THE UNIT.

AND SO, UM, THAT TIES INTO TO HOW MUCH, UH, AFFORDABILITY WE'RE GONNA HAVE.

UM, IT'S PER UNIT THAT WE DO THE, THE AFFORDABILITY COVENANT.

AND SO WE LOOKED AT HOW MUCH PER UNIT THE, UM, RESPONDENTS ARE PROVIDING.

OKAY.

AND THEN GOING TO SLIDE NUMBER EIGHT, UM, YOU'VE GOT FIVE VENDORS THERE.

AND JUST ON THE SURFACE, I WOULD SAY THAT THE NATURAL BREAKING POINT, BREAK POINT WAS, UM, BETWEEN VENDOR NUMBER THREE AND FOUR, WHERE, UM, IT'S UH, IT JUST SEEMS LIKE A NATURAL BREAKING POINT THERE.

WHY DO WE GO TO FIVE VERSUS THREE? SO AGAIN, WE WERE LOOKING AT THE READINESS FOR THE VENDORS AND THERE WERE TWO THAT DID NOT.

YEAH, THE, THE PRESENTATION SKIPPED.

UM, THANK YOU.

APPRECIATE IT.

UM, SO WE WERE LOOKING AT PROJECT READINESS AND THE VENDOR WITH THE LOWEST SCORE WAS NOT READY TO PROCEED BECAUSE THEY DID NOT HAVE THEIR ADDITIONAL FUNDING FOR THE NEXT TO THE LAST VENDOR.

WE ALSO LOOKED AT PROJECT READINESS AND THEY WERE NOT AS READY AS WELL.

UM, WE ALSO LOOKED AT THE NUMBER OF UNITS.

UM, AND SO IT WAS A COMBINATION OF THOSE THINGS.

WE THINK THESE WILL BE VERY STRONG CANDIDATES NEXT FUNDING ROUND NEXT YEAR, UM, WHEN THE OTHER, UH, TAX CREDITS AND OTHER FUNDING SOURCES, UM, ARE PROVIDED.

BUT THEY JUST DIDN'T HAVE ALL THE FUNDING THEY NEEDED IN HAND TO PROCEED WITH, UM, WITH WHAT WE HAVE.

SO THAT WAS THE NATURAL BREAK THERE.

AND OF COURSE, WE ALSO LOOKED AT HOW MUCH FUNDING WE HAD SET ASIDE IN THE HOME AND C D B G PROGRAM FOR GAP FUNDING OVERALL.

OKAY.

AGAIN, I, I'M, I'M LOOKING AT YOUR TOTAL SCORES DOWN AT THE BOTTOM OF WHICH, YES, PROJECT READINESS, IT'S RATED UP THERE HIGH, BUT IT'S NOT AS MUCH AS UNDERWRITING AND NOT AS MUCH AS, UH, CHARACTERISTICS AND AMENITIES.

UM, IT CONCERNS ME THAT WHEN, WHEN YOU'RE SAYING YOU LOOKED AT THE PROJECT READINESS, THAT'S JUST ONE ITEM OF SEVERAL ITEMS THAT THEY'RE GRADED ON.

UM, EXPLAIN THAT A LITTLE BIT MORE TO ME.

SO AGAIN, FOR THE HUD FUNDING, WE HAVE TO BE THE LAST MONEY INTO A DEVELOPMENT.

SO PROJECT READINESS AND UNDERWRITING KIND OF GO TOGETHER WHEN IT COMES TO THE FINANCING.

SO ONE OF THE DEVELOPERS DID NOT HAVE THEIR FUNDING SECURED, IT HADN'T BEEN AWARDED YET, HADN'T BEEN FINALIZED.

AND SO FOR US, UNTIL THE REST OF THE FINANCING IS SECURED AND IN PLACE, THE PROJECT IS NOT READY, IT'S NOT MEETING THE UNDERWRITING CRITERIA.

AND, AND SO THAT WAS ONE OF THE CRITERIA FOR AT LEAST ONE OF THESE DEVELOPMENTS.

AND SO PROJECT READINESS MEANS IS THE REST OF THE FINANCING READY TO GO.

IF THE FINANCING IS NOT READY, THE PROJECT WILL NOT COME TO FRUITION IN SIX TO NINE MONTHS BECAUSE FINANCING CAN TAKE UP TO A YEAR TO SECURE SOMETIMES.

AND SO THAT'S, THAT'S WHAT WE, THAT'S ONE OF THE CRITERIA WE LOOKED AT.

ONE OF THESE INDICATED THEY WERE RECEIVING MONEY FROM BEX COUNTY AND BEX COUNTY HAD NOT, UH, AWARDED THAT FUNDING.

AND SO WE KNEW, UM, THEIR PRO FORMA WAS NOT, UM, ACCURATE BECAUSE THAT FUNDING HAD NOT BEEN AWARDED YET.

OKAY.

AGAIN, I'M, I'M LOOKING AT YOUR CHART HERE.

THE FIRST THREE I CAN SEE IS THEY'RE ALL RANKED IN THE EIGHTIES, RIGHT? AND THEN YOU DIP DOWN TO, IN THE SEVENTIES, THE MID SEVENTIES, AND THEN YOU GO TO THE SIXTIES.

WHY DID Y'ALL MAKE A BREAK BETWEEN VENDOR C AND VENDOR? I MEAN, WHY, WHY WASN'T THERE A BREAK BETWEEN C AND D? WHY ARE YOU BRINGING ON FIVE CONTRACTORS VERSUS THREE? WE'RE ALSO TRYING TO MAXIMIZE HOW MANY UNITS ARE CREATED IN THE COMMUNITY.

AND SO ONCE WE HAD THE FIVE VENDORS, IT WAS A GREATER NUMBER OF UNITS THAT WE COULD SUPPORT.

AND SO THAT WAS A COMBINATION.

AND UNTIL WE SCORE THEM, WE DON'T KNOW HOW MANY TOTAL PROJECTS ARE GONNA BE FUNDED BECAUSE SOME MAY ONLY BE ASKING FOR $300,000,

[00:35:02]

AND SO UNTIL WE SEE THAT BALANCE, THAT'S HOW WE CAN DETERMINE WHO THE FINAL, UM, RECOMMENDED PROJECTS ARE GONNA BE.

AND SO WE HAVE TO LOOK AT THE WHOLE PACKAGE AT ALL, THE RESPONDENTS TOGETHER AND THE FUNDING AVAILABLE AND THE SCORING TOGETHER, UH, TO MAKE THOSE DECISIONS.

HAD THE FIRST THREE RESPONDENTS ALL ASKED FOR, UM, $2 MILLION, WE PROBABLY WOULD HAVE MADE THAT, YOU KNOW, ONLY FOUR INSTEAD OF FIVE, BUT THERE WASN'T ENOUGH FUNDING TO DO FIVE, WHICH MEANT MORE UNITS WERE TO BE CREATED WITH THIS COMBINATION OF RESPONDENTS.

SO WHERE DOES THAT GET SCORED AT? THE NUMBER OF UNITS.

SO THAT GOES INTO THE PROJECT SITE CHARACTERISTICS AND AMENITIES.

THAT'S WHERE WE LOOK AT HOW MANY UNITS, UM, AND WHAT POPULATIONS THEY'RE SERVING.

UM, AND ALSO WE LOOK AT LOCATION, BUT WE LOOK AT THE UNIT MIX AS WELL.

ARE THEY SERVING, UM, MORE 30% A M I, ARE THEY SERVING MORE 60% A M I? SO THAT GOES INTO THE PROJECTS, SITE CHARACTERISTICS AND AMENITIES.

OKAY.

I I, I HATE TO BE DRUMMING ON THIS, BUT YOU KNOW, LOOKING AT THAT, YOU GOT VENDOR E THAT'S HALF THE POINTS OF VENDOR A.

UM, YOU KNOW, VENDOR B WAS A LOT MORE, EVEN D AND VENDOR G HAD MORE THAN VENDOR E MORE UNITS.

I MEAN, I, MAYBE I'M NOT EXPLAINING MYSELF WELL ENOUGH, BUT I, I, I UNDERSTAND THAT THIS WAS A VERY COMPLICATED AND THERE'S A LOT OF DIFFERENT FACTORS, BUT THERE YOU HAVE 'EM LAID OUT WELL HERE, BUT THE, THE TOTAL SCORING IN EACH I, I, I'M SAYING I DON'T KNOW WHY THERE WOULDN'T BE A BREAK BETWEEN THREE AND FOUR.

NO, THAT'S A GOOD QUESTION.

ANYONE AWARDED? IS ANYONE OVER 70? I MEAN, THAT'S THE BEST EXPLANATION, SIMPLEST EXPLANATION I CAN PROVIDE AS WELL.

OKAY.

UM, DOES ANYBODY ELSE HAVE ANY QUESTIONS? YES.

YES SIR.

THANK YOU.

I HAVE QUITE A FEW, I'M A LITTLE BIT CONCERNED.

UM, I'LL START OFF WITH THE FIRST PART.

THE, UM, I THINK THAT WAS THE HOME OWNERSHIP OWNERSHIP.

UM, I JUST WANNA UNDERSTAND DURING THE, MAYBE I WON'T START THERE.

I DO HAVE A STRUGGLE THAT THE EXPECTATION WAS AT OR BELOW 80%.

I THINK WE'RE ALL OF, YOU KNOW, COMMON BELIEF THAT AFFORDABILITY IS AT 60% AND BELOW.

UM, ONE OF MY STRUGGLES IS THAT NOW I'LL MOVE ON TO THE SECOND ONE AND KIND OF BOTH A LITTLE BIT, IS THAT I FEEL THAT THIS IS VERY INCONSISTENT WITH THE SHIP.

WE KNOW THAT WE'RE OVERPRODUCING AT 60% AND ABOVE, AND SO WE SHOULD BE, UM, LET'S SAY WE SHOULD BE MASS, WE SHOULD BE PRODUCING SIGNIFICANTLY BELOW THAT.

AND SO I'M WONDERING WHY DOES THIS PROPOSAL SEEM TO FOCUS MOSTLY ON 56 50 TO 60% A M I WHEN THE NEED IS PRIMARILY AT 30% A M I? UM, AND MY UNDERSTANDING OF THE MATH IS THAT 65% OF UNITS NEED TO BE PRODUCED AT ZERO TO 30% A M I ACCORDING TO THE SHIP.

SO I HAVE THE SHIP WITH ME.

UM, GREAT QUESTION.

SO LET ME CLARIFY THAT.

UM, THE 60% A M I AND BELOW IS FOR RENTAL DEVELOPMENT.

MM-HMM.

, UM, SO THE SHIP IS SCHEDULED TO GO TO COUNCIL FOR ADOPTION ON DECEMBER 16TH.

SO IT'S NOT YET AN ADOPTED DOCUMENT, BUT IT IS SHAPING OUR UNDERSTANDING OF WHERE THE NEED IS.

UM, AND IN THE SHIP, AS IN THE CURRENT HOUSING POLICY FRAMEWORK, WE DO MAKE A DISTINCTION BETWEEN HOME OWNERSHIP VERSUS RENTAL.

MM-HMM.

, AND IN THE HOUSING POLICY FRAMEWORK, WHAT WE HAVE IN TERMS OF AFFORDABLE HOUSING FOR HOME OWNERSHIP IS TARGETING FAMILIES UP TO 120% A M I THE SHIP REFINES THAT, BUT THE SHIP RECOGNIZES THAT FOR HOME OWNERSHIP, THE NEED FOR AFFORDABLE HOUSING IS ACTUALLY A HUNDRED PERCENT A M I.

SO THAT'S ONE DISTINCTION WITH REGARDS TO OUR PRODUCTION IN THE RENTAL REHAB, YOU ARE CORRECT FOR RENTAL, WE SEE THE NEED AT LOWER A M I, SO WE SEE MOST OF THE NEED AT THE BELOW 50% A M I RANGE.

AND SO PART OF THE REASON WE WROTE THE R F P FOR RENTAL TO FOCUS ON 60% A M I IS EXACTLY BECAUSE OF THAT, AND IT'S EXACTLY IN ALIGNMENT WITH THE SHIP.

BUT FOR HOME OWNERSHIP, EVEN THE SHIP RECOGNIZES THAT THE NEED FOR HOME OWNERSHIP IS NOT 60% A M I, BUT IS SLIGHTLY HIGHER.

SO OUR DEFINITION

[00:40:01]

BUT I'M VERY, VERY GLAD YOU ASKED THAT QUESTION.

THANK YOU FOR ASKING THAT.

THANK YOU.

AND THAT WAS FOR EVERYBODY WATCHING AT HOME.

THAT WAS BASED ON TABLE ONE, NEW HOUSING PRODUCTION AND PRESERVATION TARGETS.

.

THANK YOU.

MY QUESTION NOW IS, UM, I APPRECIATE VENDORS A, B AND E VENDORS.

C I HAVE A QUESTION BECAUSE THEY'RE ONLY, THEY'RE ONLY PRODUCING ABOUT 80 AFFORDABLE UNITS AND THEY EVEN HAVE SOME MARKET MIXED IN.

UM, BUT THEY'RE RECEIVING THE MOST MONEY BY QUITE A BIT.

WHY IS THAT? SO I, SO AGAIN, THAT'S THE GAP FUNDING THAT WE LOOKED AT FOR THE PROFORMA.

AND SO WE HAVE TO LOOK AT HOW MUCH FUNDING THEY HAVE SECURED AND HOW MUCH IS THE GAP.

AND IT ALSO GOES TO UNITS AND WHAT KIND OF PRODUCT THEY ARE PRODUCING.

SO IF THEY HAVE DEEPER AFFORDABILITY, THEIR GAP IS LIKELY BIGGER.

AND SO THAT PLAYS A ROLE AS WELL.

IF WE ARE SUBSIDIZING UNITS AT 30% A M I, THE, THE GAP FUNDING NEEDED TO MAKE THOSE UNITS A REALITY IS MUCH BIGGER THAN FOR 60% A M I UNITS.

AND SO THAT'S PART OF THE WHAT FACTORED INTO OUR, UH, CONSIDERATION HERE.

AND WE LOOKED AT THE TOTAL DEVELOPMENT COST, HOW MANY UNITS WERE AT DIFFERENT AMMI.

AND SO ALL OF THAT PLAYS A ROLE.

THE DEEPER THE AFFORDABILITY, THE DEEPER THE GAP IS GONNA BE.

AND SO THAT, THAT'S LIKELY WHAT HAPPENED WITH THE VENDOR C RECOMMENDATION.

SORRY, THAT BRINGS ME LITERAL PAUSE , BECAUSE IT'S JUST, THEY'RE THE ONLY ONES WITH MARKET RATE.

I MEAN, MAYBE IT'S BECAUSE I DON'T HAVE THE FULL ALL THE NUMBERS IN FRONT OF ME, BUT I AM FINDING IT A LITTLE BIT OF A STRUGGLE TO SUPPORT THIS ITEM.

AND I WOULD LIKE MOVING FORWARD FOR US TO FOCUS, YOU KNOW, SHIFT OUR FOCUS AGAIN, LOWER A M I LESS MARKET RATE.

WE DON'T WANNA BE INCENTIVIZING WHERE WE ARE OVERPRODUCING.

THANK YOU.

AND IF I MAY ADDRESS THAT THE FUNDING WE HAVE DOES NOT GO TO THE MARKET RATE UNITS AT ALL.

THE FUNDING WE HAVE GOES ONLY TO THE AFFORDABLE UNITS.

AND SO A DEVELOPMENT MAY HAVE 300 UNITS, BUT IT COULD BE THAT FOR THE HOME PROGRAM, THERE'S ONLY 10 HOME UNITS IN THAT 300 UNIT DEVELOPMENT.

SO OUR FUNDING DOES NOT HELP THE MARKET RATE UNITS.

IT ONLY KEEPS THOSE 10 HOME UNITS AFFORDABLE.

SAME WITH THE C D B G PROGRAM.

IF A PROJECT HAS MARKET RATE UNITS, WE DO NOT SUBSIDIZE THOSE MARKET RATE UNITS.

WE ONLY, UH, SUBSIDIZE THE ONES THAT ARE GONNA BE AFFORDABLE.

SO THAT'S HOW WE CAN DO MIXED, UH, INCOME DEVELOPMENTS.

BUT OUR FUNDING DOES NOT GO TO HELP THE MARKET RATE UNITS AT ALL.

THANK YOU.

I APPRECIATE THAT.

I THINK WE WERE ON SLIDE NINE, WEREN'T WE? AND NINE AND 10? YEAH, I WAS MOVING AROUND A BIT ON MY OKAY.

SCREEN.

ALL RIGHT.

UM, OKAY.

YOU KNOW, IN, IN THIS DISCUSSION WE WE'RE, AND I'M HAVING TO WATCH OUT AS WELL, ARE WE DISCUSSING POLICY OR THE PROCESS HERE? AND I, I, I THINK THE PROCESS OF QUESTIONING THE DIFFERENT VENDORS AND HOW MUCH THEY'RE GETTING THAT KIND OF THING IS SPOT ON.

UM, UM, SOME OF THE PROCESS ABOUT WHAT THE POLICY IS, HOW MUCH WE SHOULD FOCUS ON, YOU KNOW, AT WHAT LEVEL THE 30% AND 60 OR 80 IS PROBABLY MORE ON THE POLICY SIDE.

AND, UH, THAT'S WHAT WE'LL DISCUSS AT COUNCIL, UH, FOR POLICY TYPE GUIDES, BUT THE ACTUAL CONTRACT AND WHAT WE'RE TALKING ABOUT, THE SPLITS AND, AND WHICH CONTRACTOR IS GETTING WHAT AND WHY, THAT KIND OF THING THAT THAT IS FOR THIS COMMITTEE TO DISCUSS.

SO I APPRECIATE, I APPRECIATE THOSE COMMENTS.

THANK YOU.

UM, UM, ANY, ANY OTHER QUESTIONS AT THIS, THIS POINT? NOT NEW QUESTIONS.

I'M SORRY, NOT NEW QUESTIONS.

THE SAME QUESTIONS.

OKAY.

ALL RIGHT.

WELL, WE'LL GET ANOTHER OPPORTUNITY TO DISCUSS THIS WHEN IT COMES UP TO COUNCIL, WHICH BRINGS US TO THAT POINT.

NOW, UH, WE HAVE TO HAVE A VOTE TO MOVE THIS TO COUNCIL.

WE HAVE A MOVE TO DO THAT AND WE NEED A SECOND.

ALL RIGHT, WE GOT A SECOND AND UH, WE'LL GO AHEAD AND VOTE ON WHETHER WE SHOULD MOVE THIS TO COUNCIL OR NOT AT THIS POINT.

UH, I DID HAVE A BUNCH OF OTHER QUESTIONS HERE, BUT I THINK, I THINK THE GIST OF WHAT YOU SAID AND WHAT YOU ASKED, COVERED A LOT OF THESE QUESTIONS HERE, SO I WON'T GET INTO THAT.

UH, SO WE GOT A MOTION AND A SECOND TO MOVE ON.

[00:45:01]

AYE.

AYE.

ALL THOSE OPPOSED? AYE.

OKAY.

WE HAVE THREE, FOUR, AND ONE AGAINST MOVING THIS TO COUNCIL.

SO, UH, THANK YOU VERY MUCH, VETO.

AND WE'RE GONNA THANK YOU, SIR.

MOVE THIS ON TO COUNCIL.

WHEN DID YOU SAY THIS WOULD BE COMING UP? IT ACTUALLY GOES TO PLANNING, UM, THE PLANNING AND COMMITTEE DEVELOPMENT COMMITTEE IN JANUARY.

SO THAT'S THE THIRD WEEK IN JANUARY.

AND THEN FOR COUNCIL IT'S GONNA BE FEBRUARY 10TH.

FEBRUARY 10TH.

SO THE POLICY DISCUSSION COULD HAPPEN AT P C D C AS WELL.

UM, BUT FEBRUARY 10TH IS THE COUNCIL DATE.

OKAY, GREAT.

WELL THANK YOU VERY MUCH, FARRELL.

THANK YOU.

ALL RIGHT, SO THAT BRINGS US TO ITEM NUMBER FIVE

[5. Approval to proceed with scheduling one contract for City Council consideration to provide the Public Works Department with construction services for the Park Police Headquarters, in the estimated total value not to exceed $3,540,320.00. Project completion is estimated for March 2023. [Roderick Sanchez, Assistant City Manager; Razi Hosseini, Director, Public Works Department]]

AND LET'S SEE, SOMEBODY HELP ME OUT.

LET'S SEE.

ITEM NUMBER FIVE IS APPROVAL TO PROCEED WITH SCHEDULING ONE CONTRACT FOR CITY COUNCIL CONSIDERATION TO PROVIDE PUBLIC WORKS DEPARTMENT WITH CONSTRUCTION SERVICES FOR THE PARK POLICE HEADQUARTERS.

AND THE ESTIMATED TOTAL VALUE NOT TO EXCEED $3,543,320.

PROJECT COMPLETION IS ESTIMATED FOR MARCH OF 2023.

THANK YOU, MADAM CLERK.

AND DO WE HAVE A PRESENTATION ON THIS? NO SIR.

I'M AVAILABLE TO ANSWER ANY.

OKAY.

ALL RIGHT.

AND, UH, AGAIN, MY, AGAIN, MY PREVIOUS COMMENTS ON THAT, UH, ABOUT POLICY VERSUS PROCESS ON THIS ONE, AND WE WILL, WE'LL GO AHEAD AND, UM, TALK ABOUT THIS A LITTLE BIT.