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TIME IS 2:09 PM ON THIS 18TH DAY OF OCTOBER, 2022.
WELCOME TO OUR CITY COUNCIL SPECIAL SESSION.
UH, MADAM CLERK, COULD YOU READ THE ROLE? COUNCIL MEMBER BRAVO HERE.
COUNCIL MEMBER MCKEE RODRIGUEZ.
COUNCIL MEMBER PALIS IS HERE VIRTUALLY.
COUNCIL MEMBER COURAGE PRESENT.
[ ITEMS]
UH, WE HAVE TWO ITEMS TODAY, SO LEMME TURN IT OVER TO ERIC TO GET US STARTED.FEELS LIKE IT'S BEEN A LONG TIME SINCE WE'VE SEEN EACH OTHER.
UH, WE HAVE TWO ITEMS ON THE AGENDA.
SO JUST TO TALK A LITTLE ABOUT ABOUT THE WEEK.
WE SCHEDULED TODAY'S SPECIAL B SESSION JUST TO STAY ON TRACK ON A NUMBER OF ISSUES.
SO TODAY WE'LL HAVE B SESSION.
TOMORROW WE'LL HAVE OUR NORMAL B SESSION, AND THEN OBVIOUSLY THURSDAY OUR A SESSION.
WE HAVE TWO ITEMS ON THE AGENDA TODAY.
UM, AND TROY WILL PRESENT THEM BOTH BACK TO BACK.
UM, AND THEY'LL INCLUDE OUR, UM, OUR FISCAL YEAR 23 HIGH PROFILE, UH, FORECAST, UH, FOR THE COUNCIL TO TAKE A LOOK AT AND PROVIDE US SOME FEEDBACK AS WE GO THROUGH THOSE HIGH PROFILE SOLICITATIONS, UH, UH, THE FIRST PART OF THIS YEAR.
AND THEN, UH, SECONDLY, PROPOSED CHANGES TO THE LOCAL PREFERENCE PROGRAM.
AND THIS ISSUE WAS TALKED ABOUT AT COMMITTEE, UH, AT THE END OF, UH, LATE SPRING, EARLY SUMMER.
AND, UH, WE'LL BE BRINGING FORWARD, UH, FOR YOUR CONSIDERATION.
SO JUST A REMINDER, THE HIGH PROFILE FORECAST, UM, IS PRESENTED ANNUALLY AND GIVES YOU AN OPPORTUNITY, UM, A PREVIEW OF THOSE HIGH PROFILE CONTRACTS THAT'LL BE PRESENTED TO COUNCIL.
WE'VE MADE A NUMBER OF SUGGESTIONS IN THE PRESENTATION.
UM, IT'S ALSO AN OPPORTUNITY FOR THE COUNCIL TO INDICATE, UM, ITEMS THAT YOU'D LIKE TO SEE COME TO B SESSION, UM, AND NOT THE AUDIT COMMITTEE, UM, AND, AND BE DEALT WITH AT A HIGHER LEVEL HERE WITH THE FULL COUNCIL.
SO WE'LL BE LOOKING FOR YOUR FEEDBACK ON THIS.
SECONDLY, UM, THE ITEM ON THE AGENDA TODAY, UM, IS RECOMMENDING SOME CHANGES TO THE LOCAL PREFERENCE PROGRAM.
UM, PRIMARILY TO INCLUDE, UH, INCREASING THE PERCENTAGE OF LOCAL PREFERENCE APPLIED TO LOW BIDS, UH, WITHIN STATE LAW.
UM, SECONDLY, THE APPLICATION OF THE PREFERENCE TO FEDERALLY FUNDED CONTRACTS AS WELL AS NONPROFIT ORGANIZATIONS.
SO I KNOW THERE'LL BE SOME DISCUSSION THERE.
UM, WE ARE, UM, THIS IS AN ADJUSTMENT AND PRIMARILY THE, UM, THE ISSUE REGARDING THE INCREASING THE PERCENTAGE OF LOCAL PREFERENCE APPLIED RIGHT NOW, UM, ON THOSE SOLICITATIONS, IF YOU'RE LOCAL AND WITHIN 3% BASED ON OUR OUR POLICIES, THEN WE WILL GO WITH THE LOCAL PROVIDER AND YOU'LL SEE THE STAFF RECOMMENDATION IS TO GO UP TO THE STATE MAXIMUM 5%, WHICH GIVES US AND THE LOCAL BUSINESS COMMUNITY AN OPPORTUNITY TO, UH, CONTINUE TO COMPETE FOR, UM, UH, BUSINESS WITH THE CITY.
SO I'M GONNA TURN IT OVER TO TROY.
HE'S GONNA DO BOTH OF THESE BACK TO BACK.
AS THE MANAGER MENTIONED, I'LL BE DOING TWO PRESENTATIONS THIS AFTERNOON.
THE FIRST IS GONNA BE THE ANNUAL HIGH PROFILE FORECAST, TRYING TO GET FEEDBACK FROM YOU ALL AS A COUNCIL AS FAR AS, UM, HOW WE'RE GONNA BE PRESENTING THESE ITEMS OVER THE NEXT YEAR, WHAT PATH WE'RE GONNA TAKE, AND ALSO SOME ENHANCEMENTS THAT WE FEEL THAT WILL BE EFFICIENCIES, UM, AS FAR AS THE PROCESS GOES.
AND THEN WRAPPING UP WITH THE, UM, THE LOCAL PREFERENCE AND SOME POLICY CHANGES THAT, UM, WE WOULD LIKE TO IMPLEMENT.
A LITTLE BIT OF BACKGROUND ON THE HIGH PROFILE PROCESS.
THIS PROCESS STARTED IN OCTOBER OF 2013 WITH THE CREATION OF THE HIGH PROFILE CONTRACTS COMMITTEE.
UH, THIS WAS ESTABLISHED REALLY TO PROVIDE OVERSIGHT OR THE HIGH PROFILE DISCRETIONARY PROCUREMENT PROCESS.
UM, WE INITIATED THE ANNUAL HIGH PROFILE FORECAST, WHICH WE'RE GONNA BE TALKING ABOUT TODAY.
AS PART OF THAT PROCESS, WE ALSO DEVELOPED THE COMMITTEE PROCESS TO INCLUDE REALLY HOW WE APPROACH THE AGENDA THROUGH, UM, PRE AND POST SOLICITATION BRIEFINGS AND AN INDIVIDUAL VERSUS A CONSENT AGENDA.
REMEMBER, FOR EVERY CONTRACT, THERE IS GOING TO BE TWO PRESENTATIONS THAT WE BRING FORWARD, EITHER THROUGH THE AUDIT AND ACCOUNTABILITY COMMITTEE OR THROUGH THE, UM, A B SESSION FOR CITY COUNCIL, BOTH A PRES SOLICITATION AND A POSTS SOLICITATION.
AND THEN AS FAR AS THE INDIVIDUAL VERSUS THE CONSENT AGENDA, THE CONSENT AGENDA IS PROBABLY GONNA BE THOSE ROUTINE ITEMS. UM, AND I'LL TALK ABOUT THE DEFINITION HERE IN A MINUTE OF A HIGH PROFILE ITEM, BUT THEY'RE GONNA BE FAIRLY ROUTINE IN NATURE.
UM, ALTHOUGH THEY MAY MEET THE DEFINITION OF A HIGH PROFILE IN 2017 AND AUGUST OF 2017, THE COMMITTEE
[00:05:01]
WAS RENAMED TO THE AUDIT AND ACCOUNTABILITY COMMITTEE REALLY TO BROADEN ITS SCOPE, NOT JUST, UM, FOR THE CONTRACTS, CONTRACTS COMPONENT, BUT ALSO FOR THE AUDIT COMPONENT, UH, PRESENTED BY KEVIN BARTOLD.AND THEN IN 2019, BASED ON, YOU KNOW, REALLY LOOKING AT TRENDS, WE NOTICED THAT THERE WERE SEVERAL ITEMS THAT WERE GOING BOTH TO A, THE AUDIT ACCOUNTABILITY COMMITTEE WAS ALSO BEING DUPLICATED THROUGH THE B SESSION.
SO WE DEVELOPED A AND ENHANCED THE PROCESS, DEVELOP A SELECT PROCESS FOR THOSE ITEMS THAT WOULD ONLY BE PRESENTED TO B SESSIONS TO THE FULL COUNCIL.
SO WE'RE NOT DUPLICATING THE EFFORT ACROSS BOTH COMMITTEES AND THE FULL COUNCIL.
THEN HERE LATELY IN JUNE, WE BROUGHT FORWARD A, UM, ANOTHER ENHANCEMENT, UM, FOR A DEDICATED BRIEF SESSION BY JESUS TO REALLY COVER ALL THE AVIATION HIGH PROFILE SOLICITATIONS THROUGH HIS BRIEFINGS THAT HE'S COMING AT, COMING BACK TO A MINIMUM OF THREE TIMES A YEAR.
THEN, AS I MENTIONED TODAY, WE'LL WALK YOU THROUGH THE FORECAST AND THEN WE'RE GONNA BE MAKING A RECOMMENDATION FROM A PROCESS STANDPOINT, AND THAT'LL BE A KEY WORD AS I WALK THROUGH MY PRESENTATION, CHANGING THE PROCESS TO, UM, CHANGING THE THRESHOLD FROM 1 MILLION TO 5 MILLION FOR PURPOSES OF WHAT'S REQUIRED THROUGH THE MONTHLY AUDIT AND ACCOUNTABILITY BRIEFINGS.
UH, FAIRLY FAMILIAR WITH THE HIGH PROFILE DEFINITION, BUT YOU KNOW, WHAT IS A HIGH PROFILE CONTRACT IS THEY ARE DISCRETIONARY CONTRACTS VALUED OVER A MILLION DOLLARS.
THEY ARE NOT LOW BID ITEMS. LOW BID ITEMS ARE TYPICALLY GOING TO BE, UM, AWARDED BASED ON PRICE AND PRICE ALONE.
THEY CAN ALSO BE, UM, SATISFY HIGH LEVEL OF COMMUNITY INTEREST OR OTHER EXCEPTIONAL INTEREST OR HIGHLY COMPLEX OR TECHNICAL IN NATURE OR CONTRACT TERMS AND CONDITIONS THAT ARE NON-STANDARD, UM, ARE COMPLEX.
IF IT HITS ANY THREE OF THOSE CRITERIA, THEN WE BRING IT FORWARD AS A HIGH PROFILE.
AS I MENTIONED, AS WE KIND OF LOOKED HISTORICALLY BACK, WE STARTED TO NOTICE THAT THERE WERE SEVERAL PROCUREMENTS THAT WERE GOING THROUGH THE AUDIT, UH, AUDIT AND ACCOUNTABILITY COMMITTEE, BUT THEN ALSO BEING TAKEN THROUGH THE B SESSION BECAUSE OF THE, KIND OF THE SIGNIFICANT NATURE OF THOSE ITEMS. AND, AND WE BASICALLY CHANGED THE PROCESS DEVELOPING SELECT CRITERIA.
SO BASED ON THIS CRITERIA, THEY WOULD GO DIRECTLY TO A B SESSION PRESENTATION AND, UM, STREAMLINE THE PROCESS BY NOT GOING THROUGH THE AUDIT AND ACCOUNTABILITY COMMITTEE.
BUT THE CRITERIA GUIDELINES THAT WE USED, UM, FINANCIAL IMPACT, UH, VALUE OVER 25 MILLION HAD A LONGER CONTRACT TERM OF 10 YEARS OR MORE.
TYPICALLY, WE WOULD HAVE POLICY, PUBLIC SAFETY IMPLICATIONS, UM, COMMUNITY OR STAKEHOLDER IMPACT OR INTEREST, AND THEN KIND OF COVER ALL OF OUR BASES PROFESSIONAL JUDGMENT.
IF WE DIDN'T COVER SOMETHING HERE BASED ON STAFF AND BASED ON WHAT WE'VE SEEN HISTORICALLY, THERE MAY BE THINGS THAT JUST BASED ON OUR HISTORY AND OUR EXPERIENCE THAT WE BRING FORWARD TO THE B SESSION BASED ON WE KNOW WHERE THEY MAY EXPRESS INTEREST OR Y'ALL MAY EXPRESS INTEREST.
AND THESE ALL REQUIRE B SESSION PRESENTATIONS.
THE HIGH PROFILE FORECAST IS PRESENTED ANNUALLY.
WE PRESENT IT AS A BASE, AND IF THINGS CHANGE OVER A YEAR, WE BRING THOSE BACK TO YOU.
BUT THERE ARE CURRENTLY THREE PATHS THAT A HIGH PROFILE SOLICITATION CAN TAKE.
THEY CAN GO THROUGH THE AUDIT ACCOUNTABILITY COMMITTEE.
THESE SOLICITATIONS ARE TYPICALLY GONNA RANGE ANYWHERE FROM A MILLION TO 25 MILLION.
UM, THEY'RE GOING TO MEET THE DEFINITION OF THE WHAT IS HIGH PROFILE, AND THEN THEY'LL BE CLASSIFIED AS INDIVIDUAL CONSENT ON THE COMMITTEE AGENDA.
WE ALSO HAVE THOSE ITEMS THAT ARE SELECT, AS I MENTIONED A WHILE AGO, THAT THAT WOULD GO DIRECTLY TO CITY COUNCIL FOR B SESSION BRIEF BRIEFINGS, BOTH IN A PRES SOLICITATION AND A POSTS SOLICITATION BRIEFING.
THESE TYPICALLY ARE GONNA ARRANGE OR BE OVER 25 MILLION, AND THEY MEET THE SELECT HIGH PROFILE CRITERIA.
WE ALSO HAVE THE SPECIAL AVIATION HIGH PROFILE BRIEFINGS.
THESE ARE GONNA BE FOR HIGH PROFILE ITEMS FOR ANYTHING OVER $5 MILLION.
IF OUR RECOMMENDATION IS ACCEPTED BY BY YOU AS A COUNCIL.
UM, IT'S REALLY DESIGNED TO BRING US COUNCIL A HOLISTIC VIEW OF EVERYTHING THAT'S HAPPENING AT THE AIRPORT IN TERMS OF, UM, HIGH PROFILE PROCUREMENTS, ANYTHING THAT'S GONNA BE OUR C I P PROGRAM RELATED TO THE TERMINAL DEVELOPMENT PROGRAM.
OR RATHER THAN HAVING A NUMBER OF BRIEFINGS THAT ARE SCATTERED THROUGH COMMITTEES THROUGH HIGH PROFILE AND B SESSION, THIS, JESUS BRINGS THESE ALL TO YOU IN ONE PLACE AND BRIEFS THEM, GIVING YOU A KIND OF A HOLISTIC PICTURE OF THE AIRPORT.
IT ALSO ALLOWS US TO MEET THE AGGRESSIVE TIMELINE TO DELIVER THE TERMINAL DEVELOPMENT PROGRAM ON TIME AND ON BUDGET.
SPEND A LITTLE BIT OF TIME IN, IN ORIENT YOU TO THIS SLIDE.
AS I MENTIONED EARLY ON IN THE BACKGROUND, WE STARTED THIS PROCESS IN 2014.
UM, THERE'S THREE CATEGORIES THAT ARE PRESENTED ON THIS SLIDE.
YOU HAVE THE CONSENT ITEMS AND YOU HAVE THE IN INDIVIDUAL ITEMS THAT GO TO THE AUDIT ACCOUNTABILITY COMMITTEE.
THEN STARTING IN 20 ARE THE ITEMS THAT WERE SELECTED FOR B SESSION PRESENTATIONS.
EACH ONE OF THOSE INDIVIDUAL NUMBERS ON EACH OF THOSE BLOCKS ON EACH OF THE BARS IS GONNA REPRESENT ONE SOLICITATION.
SO WHEN WE'RE FOCUSED ON FISCAL YEAR 2023,
[00:10:01]
THE FORECAST, YOU'RE GONNA SEE 56 ITEMS THAT ARE GONNA BE BROKEN UP INTO DIFFERENT PAST I TALKED ABOUT THAT WE'RE GONNA BE RECOMMENDING AS A, AS CITY STAFF.EACH ONE OF THOSE ITEMS WILL REQUIRE TWO PRESENTATIONS, UM, ONE FOR PRE AND ONE FOR POST.
SO IF YOU LOOK AT THE PURPLE BAR AT THE TOP OF THE FISCAL YEAR 2023, THERE'S 12 ITEMS THERE THAT WOULD BE RECOMMENDED TO BE PRESENTED TO THE FULL COUNCIL IN A B SESSION.
THAT WOULD REQUIRE 24 PRESENTATIONS, ONE IN THE FORM 12 IN THE FORM OF A PRES SOLICITATION BRIEFING THAT GOES OUT, THAT GETS PRESENTED BEFORE IT GOES OUT ON THE STREET.
AND THEN ONCE THE EVALUATION HAS BEEN COMPLETED, WE'LL COME BACK TO THE FULL COUNSEL AND A B SESSION FOR THE POST SOLICITATION SHARING THE RESULTS OF THE EVALUATION.
LOOKING BACK, HISTORICALLY AMONGST THOSE ORANGE, UM, CONSENT ITEMS AT THE BOTTOM OF THE BAR FOR THE LAST FOUR YEARS, IT'S BEEN PRETTY CONSISTENT.
27 TO 23 ITEMS THAT ARE CONSENT.
THESE ARE ITEMS THAT ARE FAIRLY ROUTINE IN NATURE.
THEY'RE NOT HIGHLY COMPLEX, THEY'RE NOT HIGHLY TECHNICAL, AND THIS IS WHERE THE FOCUS OF OUR RECOMMENDATION'S GONNA BE.
AS FAR AS MAKING OUR RECOMMENDATION TO MOVE UP TO $5 MILLION, THE MAJORITY OF THOSE ITEMS THAT WE LOOKED AT FELL UNDER THE THRESHOLD OF $5 MILLION THAT WE'RE GONNA BE RECOMMENDING.
IF YOU LOOK AT 20, 19 AND 20, YOU SEE KIND OF A DIP.
A LOT OF THESE ARE GONNA BE TIMING ISSUES.
SOME OF THOSE WERE DELAYED AND, UM, ISSUED IN THE FOLLOWING YEARS.
SO REALLY THE RESULT OF TIMING.
AND THEN 21, 22 AND 23, YOU'RE GONNA SEE KIND OF THE NUMBER OF PROCUREMENTS OR HIGH PROFILE PROCUREMENTS INCREASE.
THIS IS GONNA BE, UM, THE RESULT OF A NUMBER OF FACTORS.
ONE, THOSE POSTPONING SOME OF THOSE ITEMS IN 19 AND 20, BUT ALSO SEEING OTHER FUNDING SOURCES COME IN RELATED TO ARPA BOND PROGRAM, UM, CARES.
AND, UM, OTHER ITEMS. SO AS FAR AS A HIGH PROFILE PROCESS IN THE CHANGES THAT WE'RE RECOMMENDING IS INCREASING THE MINIMUM DOLLAR AMOUNT, REQUIRING AUDIT AND ACCOUNTABILITY COMMITTEE BRIEFINGS FROM 1 MILLION TO $5 MILLION.
UM, WE'RE NOT, WE'RE NOT RECOMMENDING CHANGING THE DEFINITION OF 1 MILLION.
WE'RE CHANGING THE PROCESS OF WHAT GOES TO, UM, THE AUDIT ACCOUNTABILITY.
WE WOULD CONTINUE IN THE FORECAST PRESENTING THOSE ITEMS FROM 1 MILLION TO 5 MILLION FOR YOUR CONSIDERATION.
BUT ANYTHING UNDER THAT 5 MILLION WOULD TYPICALLY GO DIRECTLY TO COUNCIL AND BE PLACED ON THE CITY COUNCIL CONSENT AGENDA.
THIS WOULD PROVIDE A COUPLE OF EFFICIENCIES FOR US.
ONE, THOSE ITEMS BEING FAIRLY ROUTINE IN NATURE, NOT HIGHLY, NOT HIGHLY COMPLEX, NOT HIGHLY TECHNICAL, ALLOWS US TO GET THEM OUT ON THE STREET EARLIER AND ALLOWS US TO GET THE COUNCIL EARLIER.
IT ALSO REDUCES A LOT OF ADMINISTRATIVE WORK, UM, THAT THE CITY STAFF AND ALL THE DEPARTMENTS ARE DOING IN TERMS OF PREPARING FOR THE AUDIT COMMITTEE AND THEN ALSO PREPARING FOR ANOTHER ITEM COMING BACK INTO, UM, THE FULL CITY COUNCIL.
AND THIS WOULD STREAMLINE THAT PROCESS FROM AN EFFICIENCY STANDPOINT.
OF COURSE, IF THERE ARE ITEMS UNDER 5 MILLION THAT REPRESENT A HIGH LEVEL COMMUNITY INTEREST OR THAT ARE HIGHLY COMPLEX, WE WOULD, UM, REALLY IGNORE THAT MILLION TO $5 MILLION THRESHOLD AND PUT THOSE ON THE AUDIT ACCOUNTABILITY OR THE B SESSION AGENDA.
UM, BASED ON THE, BASED ON SATISFYING THAT CRITERIA, WE'RE NOT RECOMMENDING ANY PROCESS CHANGES TO THE DEFINITION OF A HIGH PROFILE SOLICITATION THAT REMAINS AT 1 MILLION OR GREATER.
WE'RE RECOMMENDING JUST, UM, MODIFYING THE PROCESS OF WHAT GOES TO THE AUDIT ACCOUNTABILITY AND WHAT GOES DIRECTLY TO THE CONSENT AGENDA FOR THE FULL CITY COUNCIL.
THE ANNUAL FORECAST WOULD REMAIN IN PLACE AND BE PRESENTED ANNUALLY.
PROHIBITED CAMPAIGN CONTRIBUTIONS WOULD STILL BE TIED TO THE MILLION DOLLAR THRESHOLD, NOT THE 5 MILLION.
FROM A PROCESS STANDPOINT, RESTRICTIONS ON COMMUNICATIONS WOULD STAY ON PLACE AND BE APPLICABLE TO ALL OF OUR SOLICITATIONS, NOT JUST THE HIGH PROFILE.
AND THEN KEVIN, AS A CITY AUDITOR AND MY TEAM IN FINANCE, WOULD CONTINUE OUR DUE DILIGENCE REVIEWS FOR ANYTHING IN MILLION DOLLARS OR GREATER TO MAKE SURE THAT WE'RE NOT, UM, MISSING ANYTHING BEFORE IT GETS PLACED ON THE FULL COUNCIL AGENDA.
SO BASED ON OUR RECOMMENDATION, THERE ARE 56 HIGH PROFILE PROJECTS THAT WOULD BE IDENTIFIED.
FOUR WOULD BE RECOMMENDED GOING DIRECTLY TO B SESSION FOR A PRE AND A POST FOR A TOTAL OF EIGHT PRESENTATIONS.
YOU WOULD HAVE EIGHT DESIGNATED FOR AN AVIATION B SESSION, AND JESUS WOULD BE PRESENTING THOSE.
AND YOU'VE SEEN SOME OF THESE ALREADY THAT HE HAS ALREADY PRESENTED IN HIS INDIVIDUAL B SESSIONS.
UM, FOR THE TERMINAL DEVELOPMENT PROGRAM UPDATES, THEN WE HAVE 25 THAT WOULD BE DESIGNATED FOR THE AUDIT ACCOUNTABILITY, A TOTAL OF 50 PRESENTATIONS THERE, 25 PRE 25 POST, THEN 19 BASED ON THIS, UM, THIS, UH, OUR RECOMMENDATION WOULD GO DIRECTLY, UM, WOULD BE DIRECTLY PLACED ON THE CITY COUNCIL CONSENT AGENDA BASED ON BEING FAIRLY ROUTINE IN NATURE.
AND I'LL SHARE YOU THAT LIST WITH YOU, UM, FOR YOUR INPUT.
UH, BEFORE WE CONCLUDE THE PRESENTATION,
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THE FOUR ITEMS THAT ARE GONNA BE, UM, WE'RE RECOMMENDING FOR OUR GOING DIRECTLY TO B SESSION.UM, THE FIRST IS TYPICALLY THE HUMAN SERVICES CONSOLIDATED FUNDING THAT WE DO EVERY TWO YEARS.
WE ALSO, HUMAN RESOURCES WILL BE, UM, ISSUING A THIRD PARTY ADMINISTRATOR FOR OUR MEDICAL BENEFITS AND OUR PHARMACY BENEFITS TO ADMINISTER THOSE, UM, THOSE CLAIMS. SAN ANTONIO POLICE DEPARTMENT, THE TOW MANAGER AND IMPOUND OPERATIONS MANAGEMENT, AND THEN SOLID WASTE MANAGEMENT DEPARTMENT AND MUNICIPAL SOLID WASTE DISPOSAL SERVICES.
AND THE ONE THING I FAILED TO MENTION IS THAT IN THE BACK OF YOUR PRESENTATION, THERE'S A LITTLE MORE DETAILED INFORMATION, UM, THAT'S GONNA GIVE YOU MORE INFORMATION ABOVE AND BEYOND THESE.
IT'LL TALK, IT'LL GIVE A BROADER DESCRIPTION OF THE PROCUREMENT.
IT'LL ALSO GIVE YOU A DOLLAR VALUE OF THE PROCUREMENT AS WELL.
AS FAR AS THOSE ITEMS THAT JESUS WOULD BE PRESENTING IN HIS, UM, UPDATES FOR THE TERMINAL DEVELOPMENT PROGRAM.
HAVE A TERMINAL, A GROUND LOADING FACILITY, CONCESSIONAIRES FOR TERMINALS A AND B EXIT LANE BREACH CONTROL SYSTEM FOR INTERNAL A B PARKING OPTIMIZATION, WHICH WAS PRESENTED FROM A PRE TO YOU, UM, WITH HIS LAST UPDATE ON-CALL, GENERAL CONTRACTOR SERVICES, DRUG FREE SPECIALTY STORES, AND THEN BAGGAGE HANDLING AND SYSTEM EXPANSION, AS I MENTIONED FOR THE AUDIT ACCOUNTABILITY.
IT'LL BE COVERED THROUGH THE NEXT SEVERAL SLIDES.
THERE'S 25 ITEMS. SO EACH OF THESE WOULD GO BACK THROUGH THE AUDIT ACCOUNTABILITY AS A PRES SOLICITATION AND A POST SOLICITATION CEF WILL BE BRINGING FORWARD ON THE NEXT, UM, AUDIT ACCOUNTABILITY AGENDA, SPONSORSHIPS FOR THE ALMA DOM, E D D WITH ARPA, SMALL BUSINESS GEOGRAPHIC PLACEMAKING.
THEN I HAVE TWO ITEMS THAT WE'D BE BRINGING FORWARD FOR OUR FINANCE UNDERWRITING POOL AND OUR COLLECTION OF DELINQUENT PROPERTY TAXES AND MOBILE MENTAL WELLNESS COLLABORATIVE FOR HEALTH I T S D TWO ITEMS. AND THE SS A P UPGRADE.
AND THIS WOULD BE A VARIETY OF CONTRACTS THROUGH SOFTWARE PURCHASES, IMPLEMENTATION AND OVERSIGHT.
UH, MUNICIPAL COURT CASE MANAGEMENT SYSTEM AND CUSTODIAL SERVICES FOR THE LIBRARY AND CUSTODIAL SERVICES IS ON HERE PRIMARILY BECAUSE IT MEETS, UM, ABOVE 5 MILLION, ABOUT $6.5 MILLION.
THERE'S SEVERAL ITEMS, UM, THAT ARE RELATED TO THE BOND PROGRAM.
UH, THE BOND RESIDENTIAL REHAB CONSTRUCTION CONTRACTORS, AND THEN SEVERAL ITEMS RELATED TO REHAB PRESERVATION ACQUISITION, THEN BOND HOMEOWNER, BOND HOMEOWNERSHIP PRODUCTION, UM, FOR THE 2022 HOUSING BOND.
WRAPPING UP WITH THE, WITH THE AUDIT AND ACCOUNTABILITY COMMITTEE ITEMS, PUBLIC WORKS DEPARTMENT, SEVERAL ITEMS, UM, FROM ON-CALL ASBESTOS ALL THE WAY THROUGH ALAMODOME STRUCTURAL REPAIRS.
HIGHLIGHT A COUPLE OF THE BIGGER ONES WITH TAVER AMERICA'S IMPROVEMENTS, HEMISPHERE, CIVIC PARK, BRACKENRIDGE PARK, UM, WEST BILLING AND CASE SPACE FOR THE HENRY B. GONZALEZ CENTER, SAN ANTONIO POLICE DEPARTMENT ALARM FEES AND WITH TRANSPORTATION ON-CALL PROFESSIONAL CONSULTING SERVICES.
THIS NEXT LIST ARE THE ITEMS THAT WOULD, BASED ON OUR RECOMMENDATION, WOULD GO DIRECTLY TO THE CITY COUNCIL.
UM, AND PLACED ON THE CONSENT AGENDA.
THESE ARE THE ONES I MENTIONED TO YOU THAT, THAT BASED ON OUR RECOMMENDATION, BASED ON OUR EXPERIENCE THAT WE BELIEVE ARE HIGHLY ROUTINE, THEY MAY OR MAY NOT MEET THE, UM, HIGHLY COMPLEX REQUIREMENT OR HIGH COMMUNITY INTEREST.
SO JUST KIND OF RUNNING THROUGH THE LIST.
THIS IS, UM, THESE ARE ITEMS THAT WOULD TYPICALLY HAVE GONE THROUGH THE AUDIT ACCOUNTABILITY ON THE CONSENT AGENDA, WHILE WE'RE RECOMMENDING THEY GO DIRECTLY TO THE CITY COUNCIL CONSENT AGENDA, SO WE CAN GAIN THOSE EFFICIENCIES I MENTIONED EARLIER.
AS FAR AS AVIATION, THIS IS A SOFTWARE SYSTEM INTEGRATION PROJECT PROVIDING SHUTTLE BUS SERVICES, RUBBER AND PAINT REMOVAL, SEVERAL ON-CALL FOR PLUMBING PLANNING, CONSULTING, ENVIRONMENTAL ELECTRICAL SERVICES, COMMON USE PASSENGER SYSTEM MANAGEMENT SERVICES FOR THE C I P PROGRAM.
AND THEN AN INTER ENTERPRISE ASSET MANAGEMENT SOFTWARE FOR THE AIRPORT.
OUR BUILDING EQUIPMENT SERVICES, TRAY AND PALM MAINTENANCE, CHILLER MAINTENANCE, UM, REPAIR SERVICES, UM, CAFE COLLEGE OPERATIONS FOR D H S ENHANCED DISEASE SURVEILLANCE SYSTEM FOR HEALTH.
SEVERAL IMPLEMENTATIONS FOR I T S D DISPENSING EQUIPMENT FOR LIBRARY PARKS AND RECREATION.
THIS MAY BE ONE Y'ALL WANT TO CONSIDER.
UM, PORTABLE CHEMICAL TOILETS AND SERVICES.
AND, UM, SS A P D COMMUNITY CRIME PREVENTION PROGRAMS. THAT IS THE CONSENT AGENDA AND CONCLUDES THE ANNUAL HIGH PROFILE FORECAST.
UM, NOW I'LL SWITCH GEARS OVER TO THE, UM, LOCAL PREFERENCE.
[00:20:06]
THIS PRESENTATION WILL BE PRESENTING SEVERAL ITEMS THAT WE'RE RECOMMENDING FOR CHANGES, REALLY FOCUSING ON, BASICALLY ALIGNING WITH STATE STATUTE AS, UM, AS ERIC MENTIONED, MOVING MAYBE FROM 3% TO THOSE, THE MAXIMUM ALLOWED IN THE STATE STATUTE TO 5%.ALSO LOOKING AT A COUPLE OTHER AREAS WHERE WE THINK THAT, UM, MAY BE VALUABLE TO, TO RE-LOOK AT IN TERMS OF, UM, NONPROFITS AND ALSO CONTRACTS OR SOLICITATIONS THAT ARE FALL UNDER OUR, OUR FEDERAL FUNDING OR FROM FEDERAL GRANTOR AGENCIES.
SO IN OUR ORDINANCE, BASICALLY THE, THE PURPOSE OF OUR LOCAL PREFERENCE PROGRAM IS TO USE THE CITY SPENDING POWER TO PROMOTE FISCAL RESPONSIBILITY, MAXIMIZE THE AMOUNT OF RESIDENT TAX DOLLARS THAT REMAIN IN THE LOCAL ECONOMY FOR THE BENEFIT OF OUR CITIZENS BY UTILIZING ALL AVAILABLE LEGAL OPPORTUNITIES TO CONTRACT WITH CITY BUSINESSES.
UM, AS FAR AS BACKGROUND THE ORDINANCE WENT INTO WAS EFFECTIVE ON MAY 1ST, 2013, UH, APPLIES TO BUS BUSINESSES LOCATED WITHIN THE SAN ANTONIO CITY LIMITS.
WE DID NOT HAVE A HEADQUARTER REQUIREMENT OR A TIME REQUIREMENT AT THAT POINT IN TIME.
A 3%, UH, PRICE PREFERENCE ON LOW BID CONTRACTS BEING KIND OF RIGHT OUT THE GATE.
WE DIDN'T WANNA GO TO THE FULL 5% 'CAUSE WE REALLY DIDN'T HAVE THE INFORMATION TO SHOW WHAT THE FINANCIAL IMPACT WOULD BE.
AND NOW WE DO ON THE DISCRETIONARY SIDE, PROVIDE PROGRESS, UH, PREFERENCE POINTS FOR CERTAIN DISCRETIONARY CONTRACTS.
10 POINTS FOR LOCAL BIDDERS THAT ARE HEADQUARTERED IN SAN ANTONIO FOR A YEAR OR MORE.
AND FIVE POINTS FOR BIDDERS WHO HAVE A SIGNIFICANT BUSINESS PRESENCE, OR AT LEAST 20% OF EMPLOYEES BASED IN THE CITY, WITH A MINIMUM OF A HUNDRED EMPLOYEES IN INCORPORATED CITY LIMITS FOR ONE YEAR OR MORE IN DECEMBER OF 2013 AND 2014 MADE SEVERAL CHANGES.
WE, UM, WHEN WE IMPLEMENTED THE LOCAL PREFERENCE PROGRAM, THERE WERE CERTAIN LEAP LOOPHOLES OR THINGS THAT WE WANTED TO EVALUATE.
HE WAS A PARTNER WITH TIDINGS AND ROSENBERG.
AND BASED ON HIS RECOMMENDATIONS, THERE WERE SEVERAL ITEMS OR ENHANCEMENTS THAT WE MADE TO THE PROGRAM.
ONE WAS A LANGUAGE SURROUNDING GOODS AND NON-PROFESSIONAL SERVICES.
WHEN BASIS, UH, PRICES, THE BASIS FOR AWARD BASIC, UH, PROVIDING CLARIFICATION.
WE ADDED CONCESSION REVENUE CONTRACTS 'CAUSE THE INITIAL ORDINANCE WASN'T APPLICABLE TO CONCESSIONS AND REVENUE CONTRACTS.
THERE'S CLARIFICATION ON WHETHER APPLIED TO A FOR-PROFIT BUSINESS OR A NON-FOR-PROFIT.
AND BASED ON THE, THE RECOMMENDATIONS OF THE CONSULTANT, UM, IT DOES NOT APPLY TO NON-PROFITS, BUT APPLY SOLELY TO FOR-PROFIT BUSINESSES THAT WOULD BE ELIGIBLE FOR THE LOCAL PREFERENCE.
YOU HAVE TO BE HEADQUARTERED AND INCORPORATED IN THE LIMITS OF THE CITY FOR ONE YEAR OR MORE.
UM, YOU CAN'T JUST, UM, MOVE INTO THE CITY AND HAVE A LOCAL PREFERENCE, UM, AND TAKE ADVANTAGE OF THAT PREFERENCE.
AND WE ALSO EXPANDED THE APPLICATION TO JOINT VENTURES.
SO IN AN INSTANCE WHERE YOU HAVE TWO COMPANIES THAT COME TOGETHER, ONE BEING A NON-LOCAL, ONE BEING A LOCAL, WE HAVE THE ABILITY TO APPORTION THOSE POINTS BASED ON THE OWNERSHIP OF THAT JOINT VENTURE SO THAT THAT LOCAL BUSINESS CAN ACTUALLY, UM, BENEFIT FROM A LOCAL PREFERENCE.
THEN THE PRO PROGRAM IS SELF-CERTIFICATION WITH VALIDATION, UM, MEANING THAT THERE IS A FORM THAT THEY FILL OUT.
ARE THEY HEADQUARTERED IN SAN ANTONIO? HOW MANY EMPLOYEES DO WE HAVE IN SAN ANTONIO PRIOR TO BRINGING A RECOMMENDATION TO COUNCIL, MY TEAM GOES AND, UM, VALIDATES THE, UM, THE RECOMMENDED AWARDED CONTRACT TO MAKE SURE THAT THEY MEET ALL THOSE CRITERIA BEFORE WE BRING IT TO COUNCIL.
AS, UM, AS WE MENTIONED, STATE STATUTE ALLOWS IT TO A 5% PRICE PREFERENCE FOR LOW BID CONTRACTS AND WITHIN CERTAIN THREE AND WITHIN CERTAIN THRESHOLDS FOR CERTAIN TYPES.
SO GOODS LESS THAN 500,000, YOU CAN ACTUALLY, UM, PROVIDE UP TO A 5% PREFERENCE.
ANYTHING ABOVE THAT 500, UM, THOUSAND THRESHOLD, IT CONTINUES WITH THE 3% PREFERENCE FOR GOODS BASED ON STATE STATUTE, NON-PROFESSIONAL SERVICES, UM, LESS THAN 500,000.
YOU CAN PROVIDE A 5% PREFERENCE.
UM, ANYTHING ABOVE 500,000, NO PREFERENCE IS, UM, ALLOWED UNDER STATE STATUTE AND CONSTRUCTION SERVICES, LESS THAN A HUNDRED THOUSAND.
UM, YOU CAN GO UP TO A 5% PREFERENCE, WHICH WOULD RARELY BE USED.
OUR INSTANCE, SINCE OUR CONTRACTS, UM, RARELY, UM, OR LESS THAN A HUNDRED THOUSAND DOLLARS FOR CONSTRUCTION.
THIS IS A REAL SIMPLE EXAMPLE.
I THINK MANY OF YOU HAVE SEEN THIS BEFORE, BUT I THINK IT KIND OF REALLY ILLUSTRATES HOW THE, THE PRICE PREFERENCE OR THE LOCAL PREFERENCE WORKS ON OUR LOW BID CONTRACTS.
THE FIRST SCENARIO IS A LOCAL BUSINESS BIDS ON A WIDGET FOR $1,100.
NON-LOCAL BUSINESS BIDS A THOUSAND DOLLARS.
THE NON-LOCAL BUSINESS, THAT'S A LOW BID.
THEIR LOW BID IS WITHIN THE NON, THE LOCAL BUSINESS.
IT'S WITHIN 10% OF THE NON-LOCAL BUSINESS.
BASED ON OUR PREFERENCE PROGRAM, YOU HAVE TO BE UNDER 3%.
[00:25:01]
THE LOCAL BUSINESS IN THE SECOND SCENARIO, UM, LOCAL BUSINESS BIDS $1,530, A $30, $30 OVER THE NON-LOCAL BID, WHICH IS 2% ABOVE.AND THE LOCAL BUSINESS IS ONLY 2% ABOVE AND BEYOND THE NON-LOCAL BUSINESS.
IT'S WITHIN THAT 3% PREFERENCE.
WE CAN THEN GO TO THE HIGHER BID FOR THE LOCAL BUSINESS.
THESE NEXT THREE SLIDES ARE FAIRLY SIMPLE.
I THINK THEY ILLUSTRATE, UM, OUR RECOMMENDATION, UH, COMPARED TO OUR CITY ORDINANCE AND STATE STATUTE.
BUT THE CURRENT CITY ORDINANCE ALLOWS A PREFERENCE FOR, UM, PROCUREMENTS THAT ARE 50,000 AND ABOVE AT 3% THROUGH INFINITY.
ESSENTIALLY, STATE STATUTE ALLOWS US TO MOVE THAT 3% THRESHOLD TO 5% BETWEEN, UM, UNDER 500,000.
AND WE WOULD RECOMMEND CONTINUE KEEPING THE BASE OR THE MINIMUM OF 50,000.
SO WE COULD PROVIDE THAT 5% PREFERENCE BETWEEN 50 AND 500,000.
ANYTHING ABOVE 500,000 FOR THE PURCHASE OF A GOOD WOULD REMAIN AT 3% NON-PROFESSIONAL SERVICES.
BASED ON OUR CURRENT CITY ORDINANCE, BETWEEN 50,000 AND 500,000, YOU CAN DO A 3% PREFERENCE.
ANYTHING ABOVE 500,000 IS NOT ALLOWED BASED ON STATE STATUTE.
OUR RECOMMENDATION IS TO MOVE WITHIN THAT THRESHOLD TO 5%, AN ADDITIONAL 2% BETWEEN 50,000 AND 500,000 FOR NON-PROFESSIONAL SERVICES.
AS FAR AS CONSTRUCTION SERVICES, AS I MENTIONED, THIS IS NOT SOMETHING THAT WOULD PROBABLY EVER COME INTO PLAY, BUT NEVERTHELESS, WE WOULD MO WE WOULD MODIFY THE CURRENT CITY ORDINANCE.
UM, TO ALIGN WITH, UM, STATE STATUTE BETWEEN 50,000 AND A HUNDRED THOUSAND, CURRENTLY HAVE A 3% PREFERENCE.
WE WOULD RECOMMEND MOVING THAT TO 5% BETWEEN 50,000 AND A HUNDRED THOUSAND.
UM, WITH THE ORDINANCE CURRENTLY, CURRENTLY BASED, UM, WE CANNOT APPLY A PREFERENCE TO CONTRACTS OR SOLICITATIONS THAT ARE FUNDED, UM, THROUGH FEDERAL GRANTOR AGENCIES BASED ON OFFICE AND MANAGEMENT BUDGET CIRCULARS, TYPICALLY THAT WOULD NOT BE ALLOWED.
SO WE MIRRORED OUR ORDINANCE TO REFLECT THE, UM, THOSE CIRCULARS.
AS I MENTIONED EARLIER, LOCAL PREFERENCE PROGRAMS NOT APPLICABLE TO NON-PROFIT ORGANIZATIONS BASED ON OUR CURRENT ORDINANCE.
AND THERE ARE ALSO CERTAIN LIMITATIONS BY STATE STATUTE WHERE WE CANNOT APPLY A LOCAL PREFERENCE.
THE TELECOMMUNICATION INDUSTRY, FOR EXAMPLE, AND THERE'S A NUMBER OF STATE STATUTES THAT, THAT GOVERN OTHER PROCUREMENTS, LIKE PROFESSIONAL SERVICES FOR ARCHITECTS AND ENGINEERING OUR BEST VALUE BIDS BASED ON THOSE STATUTES, WE CANNOT APPLY A LOCAL PREFERENCE OR A GEOGRAPHICAL PREFERENCE.
UM, THE ORDINANCE ALSO ALLOWS US, WHEN THE MANAGING DEPARTMENT OR CITY COUNCIL DETERMINES THAT, UM, IT WOULD BE IN THE NOT BE IN THE BEST INTEREST OF THE CITY TO ALLOW LOCAL PREFERENCE, THEN WE CAN MODIFY THAT.
AND THEN, AS I MENTIONED ON THE PRIOR SLIDES, PURCHASE OF GOODS AND NON-PROFESSIONAL SERVICES UNDER $50,000, IT WOULD NOT BE APPLICABLE TO AS WELL TWO AREAS THAT, UM, WE THINK WOULD PROVIDE SOME ADDITIONAL FLEXIBILITY.
ONE IS ON THE EXCEPTION OF FEDERALLY FUNDED CONTRACTS.
YOU KNOW, AS I MENTIONED, OUR COURT ORDINANCE EXCLUDES THE APPLICATION OF LOCAL PREFERENCE TO CONTRACTS THAT ARE FUNDED IN WHOLE, ARE IN PART BY THE FEDERAL GOVERNMENT OR WHERE THE CITY ACTS AS A CONDUIT FOR FEDERAL MONEY.
NOW, RECENTLY WE'VE NOTICED THAT THERE ARE SOME FEDERAL PROGRAMS THAT, UM, ARE STARTING TO ALLOW A GEOGRAPHICAL PREFERENCE OR A LOCAL PREFERENCE.
UH, FOR EXAMPLE, ARPA RECENTLY THE TREASURY DEPARTMENT CAME BACK AND HAS NOW ALLOWED THAT.
SO WE'RE RECOMMENDING BASICALLY AMENDING THE, UM, THE LOCAL PREFERENCE ORDINANCE TO ALLOW FOR THE APPLICATION OF A LOCAL PREFERENCE.
THE FEDERAL GRANTS THAT PROVIDES THAT FLEXIBILITY TO WORK WITH THE GRANTOR AGENCIES AND DETERMINE WHERE WE CAN ACTUALLY APPLY THAT, LIKE IN THE TERMS OF OUR IN ARPA AS FAR AS NONPROFIT ORGANIZATIONS.
AND AS I MENTIONED EARLIER IN 2014, WE HAD A CONSULTANT COME IN AND ASSIST US WITH LOOKING AT AND SCRUBBING THE PROGRAM.
AT THAT TIME, THEY RECOMMENDED NOT ALLOWING THE LOCAL PREFERENCE TO A NONPROFIT ORGANIZATIONS.
UM, I THINK THERE'S PROBABLY PROS AND CONS AND PROBABLY TWO DIFFERENT ARGUMENTS THAT CAN BE MADE HERE WITH NON-PROFIT ORGANIZATIONS.
UM, HE ORIGINALLY HAD SAID THAT NONPROFITS HAVE AN ADVANTAGE OVER OUR PROFIT FOR PROFIT BUSINESSES, UM, AND THAT THEY ARE EXEMPT FROM PAYING TAXES AND THEY DON'T HAVE A REQUIREMENT TO DISTRIBUTE PROFITS TO THE OWNERS.
THERE'S ALSO A COUNTERARGUMENT THAT NONPROFITS ALSO HIRE EMPLOYEES, WHICH THOSE EMPLOYEES THAT WORK FOR THESE NONPROFITS, UM, PAY TAXES AND PAY SALES TAXES WHICH BENEFIT THE CITY OF SAN ANTONIO.
I THINK THE QUESTION REALLY IS, YOU KNOW, WHAT, WHERE DOES THE INCENTIVE LIE? DOES IT APPLY TO INCENTIVIZE THE LOCAL, THE LOCAL NONPROFITS OR INCENTIVIZE THE EMPLOYMENT OF OUR EMPLOYEES THAT, THAT ACTUALLY CONTRIBUTE AND WORK IN THE CITY OF SAN ANTONIO ALSO WENT
[00:30:01]
BACK AND LOOKED AT WHERE WOULD THIS BE APPLIED.IT DOES HAVE A NARROW APPLICATION AS I MENTIONED.
UM, BEST VALUE BIDS OR AN R F C S P.
UM, IT'S NOT ALLOWED TO APPLY, APPLY A LOCAL PREFERENCE BASED ON STATE STATUTE.
THIS IS WHERE A LOT OF NONPROFITS TEND TO PLAY AND BID ON IN TERMS OF CUSTODIAL, UM, AND LANDSCAPING, UM, AND THINGS OF THAT NATURE.
UM, SO IT WOULD NOT REALLY BE APPLICABLE IN THOSE AREAS FOR A NONPROFIT.
I THINK THERE WOULD BE A BENEFIT THOUGH, WHEN YOU LOOK AT MAYBE SOME OF OUR LOW BID.
UM, WHEN YOU TALK ABOUT MAYBE PAPER, UH, YOU TALK ABOUT OFFICE SUPPLIES, UH, FOR EXAMPLE, UM, LIGHTHOUSE FOR THE BLIND.
THEY, UM, THEY PROVIDE AND SELL PAPER AND BID ON OUR, UH, BID ON OUR, UM, PAPER CONTRACTS.
AND THEY ALSO BID ON OUR CONS, UH, CONSUMER SUPPLIES OR OFFICE.
THOUGH BY ALLOWING A LOCAL PREFERENCE TO NONPROFITS, THEY WOULD BE ABLE TO COMPETE ON SOME OF THESE COMMODITIES.
UM, AND IF Y'ALL ACCEPT THE RECOMMENDATION TO MOVE FOR THREE, 5% MAY ALSO BE A GREATER BENEFIT FOR THEM AS WELL.
AND BECAUSE OF THAT BENEFIT, UM, AND BECAUSE OF THE LIMITED, UH, APPLICABILITY WORK WE ARE RECOMMENDING, UH, PROVIDING OR EXPANDING THE LOCAL PREFERENCE TO NONPROFITS.
I SHARED A SIMILAR SLIDE LIKE THIS WITH THE AUDIT ACCOUNTABILITY COMMITTEE, UM, FOR FISCAL YEAR 2021.
UM, I COMMITTED TO THEM TO COME BACK ONCE WE HAD THE RESULTS FOR 2022.
AND I'M SHOWING THOSE RESULTS NOW.
THE RESULTS FOR 2022, WHEN YOU LOOK AT, UM, WHAT WENT TO A LOCAL ADDRESS OR WHAT WENT UM, WAS APPLICABLE TO LOCAL PREFERENCE, WE DID SEE A DECREASE IN 2022.
UH, A COUPLE REASONS FOR THAT, AND I'LL GO THROUGH THOSE HERE IN A SECOND.
AS FAR AS GOODS AND NON-PROFESSIONAL SERVICES, THERE WERE 68 CONTRACTS OR SOLICITATIONS IN AN ESTIMATED AMOUNT OF 59.5 MILLION THAT WENT TO A LOCAL ADDRESS, OR 27% OF THE TOTAL SPEND OF THAT.
TWO OF THE 68 LOCAL CONTRACTS WERE AWARDED DUE TO THE APPLICATION OF A LOCAL PREFERENCE PROGRAM, MEANING THEY FELL WITHIN THAT 3%, UM, VARIANCE, I MEAN THE AMOUNT OF $1.2 MILLION RESULTING IN ADDITIONAL COST OF 17,000.
AND I'M GONNA HAVE ANOTHER SLIDE TO, UH, SHOW YOU THAT AS WELL.
AS FAR AS PROFESSIONAL SERVICES GO, WE SAW A DECREASE THERE AS WELL.
UM, 250.9 MILLION WENT TO LOCAL ADDRESSES OF WHICH SIX OF THOSE 46 LOCAL CONTRACTS WERE AWARDED DUE TO THEM RECEIVING PREFERENCE POINTS IN THE AMOUNT OF ABOUT $26.2 MILLION.
AS FAR AS LOCAL, UM, WE SAW INCREASES IN CONSTRUCTION AND, AND A AND E, UH, 44 LOCAL CONSTRUCTION PAYMENTS, 174 MILLION, 76% OF THE SPEND AS WELL AS A AND E 10 LOCAL CONTRACTS, 67.8, 72% OF THE SPEND.
ONE OF THE THINGS THAT WE'RE SEEING PREDOMINANTLY IN THE GOODS AND NON-PROFESSIONAL SERVICES AS PROCUREMENT HAS BEEN SOMEWHAT CHALLENGING OVER THIS YEAR, PARTICULARLY IN FLEET, UH, FLEET BUYS AND FLEET BUYS ARE ONE OF THE AREAS WHERE WE SEE A LOT OF OUR PARTICIPATION AND A LOT OF OUR AWARDS FOR LOW BID CONTRACTS.
IN TERMS OF THE LOCAL PREFERENCE, FLEET PAPER HAS BEEN ESPECIALLY CHALLENGING.
UM, FLEET WE'VE HAD, TYPICALLY WE WOULD DO COMPETITIVE BIDS, BUT BECAUSE OF THE SUPPLY CHAIN ISSUES, WE'VE SEEN A LOT OF, UM, DEMAND FOR THEIR ORDER.
AND SO IN ORDER TO BE ABLE TO GET BIDS IN AND HAVE THEM ORDERED AND DELIVERED TIMELY, WE BEFORE THE CLOSING OF THOSE ORDER WINDOWS, WE'VE HAD TO, UM, GO TO COOPERATIVES OR DIRECT PURCHASES.
AS FAR AS PAPER, UM, TYPICALLY YOU WOULD HAVE AN ANNUAL CONTRACT PURCHASING PAPER THIS YEAR BECAUSE OF THE PAPER SHORTAGES WE'VE BEEN DOING, AD HOC BUYS UNDER $50,000.
SO TYPICALLY YOU WOULD HAVE THAT IN TERMS OF THE LARGE ANNUAL CONTRACT, BUT NOW THEY'RE BEING, UM, KIND OF INDIVIDUAL PURCHASE ORDERS.
SO THAT'S ONE OF THE REASONS AND THAT'S KIND OF THE THEME THAT WE'RE SEEING WHEN IT COMES TO SPENDING DECREASING IN 2022.
IN TERMS OF LOCAL, THIS IS A SLIDE AS WELL THAT I SHARED WITH THE AUDIT ACCOUNTABILITY COMMITTEE.
I SHARED WITH THEM THE 20 22, 20 20.
2021 COMPARATIVELY, F Y FISCAL YEAR 2022, IT IS MUCH LOWER.
UM, FOR FISCAL YEAR 22 OR THREE UNDER THE 3% AWARD.
UM, $1.2 MILLION WAS LED UNDER A LOCAL PREFERENCE AWARD IN TERMS OF VALUE WITH AN ADDITIONAL COST OF $17,000.
THAT COMPARES TO 2021 OF $13.2 MILLION AND 54,000 ADDITIONAL COSTS.
A LOT OF THAT IS GONNA BE A TRI TO ATRI TO WHAT I JUST MENTIONED, BUT ALSO THERE WAS, UM, SOME LARGE PURCHASES LAST YEAR THAT INFLUENCED THAT.
AND SO YOU'RE GONNA HAVE TIMING ISSUES AS WELL AS WHEN IT COMES TO SOME OF OUR FLEET BUYS AND THE TIMING OF THOSE FLEET BUYS.
[00:35:01]
THE COST IMPACT OF MOVING TO FIVE, IT REALLY DID NOT HAVE A SIGNIFICANT IMPACT IN 2022.GOING FROM AN AWARD VALUE OF 1.2 MILLION TO 1.36, AN ADDITIONAL COST OF 24,000 ABOVE AND BEYOND THE 17,000 FOR 3% WITH AN INCREMENTAL COST OF ROUGHLY $7,000.
THIS MAY NOT BE THE TYPICAL LOOK.
IT'S, AS I MENTIONED, I THINK IT'S REALLY GONNA DEPEND ON A COUPLE THINGS WHEN IT COMES TO OUR PROCUREMENTS.
THE, UM, SUPPLY CHAIN LEVELING OUT.
UM, THERE'S ALSO, AS I MENTIONED, GONNA BE A TIMING COMPONENT THAT AS WE PROCURE, LIKE FLEET BUYS FOR EXAMPLE, THOSE WILL COME UP EVERY TWO YEARS.
SO THIS WILL CHANGE FROM YEAR TO YEAR.
LOOKING AT SOME OF OUR RECOMMENDATIONS ON THE LOCAL PREFERENCE PROGRAM UNDER OUR CURRENT LID, LOW BID CONTRACTS, UNDER 3% VARIANCES, AS I MENTIONED, YOU'RE PRIMARILY GONNA SEE IT BEING APPLICABLE TO FLEET, WHICH IS GONNA BE OUR SEDANS, UH, PURSUIT VEHICLES, UH, EQUIPMENT LIKE TRAILERS AND JANITORIAL SERVICES.
IF WE MOVE TO THE 5% AND ACTUALLY OPEN IT UP TO NON-PROFITS, UM, I THINK THERE'S ADDITIONAL OPPORTUNITIES OUT THERE WHEN WE GO BACK AND LOOK AT OUR, OUR HISTORICAL SPEND MEDICAL SUPPLIES LOOKING AT ITEMS LIKE CRACKED SEALANTS AND LUBRICANTS OFFICE AND JANITORIAL SUPPLIES, PAPER, WATER, AND ALSO HOW WE PROCURE THESE ITEMS MA, UM, MATTERS THROUGH DB BUNDLING, MAKING THEM SMALLER OR DOING LINE ITEM BIDS.
IT CAN ALSO MAKE IT MORE, UM, MORE BENEFICIAL TO A, A NONPROFIT OR EVEN TO OUR SMALLS.
SO IN SUMMARY, WRAPPING UP THE, UH, MY LOCAL PREFERENCE PRESENTATION, UH, WE ARE RECOMMENDING INCREASING THE LOCAL PREFERENCE FROM 3% TO 5% TO ALIGN WITH STATE STATUTE.
WE'RE ALSO RECOMMENDING ALLOWING THE APPLICATION, UM, TO LOCAL PREFERENCE PROGRAMS WERE APPLICABLE, UH, FOR CONTRACTS OR SOLICITATIONS THAT ARE FEDERALLY FUNDED.
THEN ALSO BROADENING IT, UM, AND ALLOWING APPLICATION, UH, THE LOCAL PREFERENCE PROGRAM TO NONPROFITS OR APPLICABLE.
UM, MAYOR, THAT CONCLUDES MY PRESENTATION AND BE HAPPY TO ANSWER ANY QUESTIONS YOU'LL HAVE.
ALRIGHT, THANK YOU FOR THE PRESENTATION, TROY.
UM, I DON'T REALLY HAVE ANY QUESTIONS.
UH, AGREE WITH THE PROCESS CHANGES, UM, AS WELL AS THE LOCAL PREFERENCE, PREFERENCE IMPROVEMENTS.
IF OUR GOAL IS TO KEEP AS MUCH OF THESE CAPITAL DOLLARS, UM, INTO THE LOCAL COMMUNITY AS POSSIBLE TO HELP WITH SMALL BUSINESS DEVELOPMENT AS WELL, AS WELL AS, UM, YOU KNOW, EMPLOYING LOCAL SAN ANTONIONS, I THINK THIS IS A GOOD, GOOD STEP.
UH, THERE'S A LOT OF OTHER CONVERSATIONS GOING ON IN THE PROCUREMENT SPACE THOUGH WITH REGARD TO HOW WE CAN UTILIZE PROCUREMENT AND CONTRACTING OPPORTUNITIES TO HELP WITH LOCAL SMALL BUSINESSES.
SO JUST NOTING THAT IN THE CONTEXT OF WHAT WE'RE DOING HERE, I THINK IT'S, IT'S GONNA BE IMPORTANT THAT WE LOOK BIG PICTURE OF WHAT, WHAT ALL OF THIS CAPITAL SPENDING IS DOING FOR, UM, OUR LOCAL ECONOMY AND LOCAL BUSINESSES AND LOCAL EMPLOYEES.
SO LET'S GO RIGHT INTO COUNCIL DISCUSSION AND I DO NOT SEE ANYONE IN THE QUEUE YET.
I'M GONNA START WITH THE SECOND PRESENTATION.
UM, AND THANK YOU OF COURSE FOR YOUR TIME TODAY.
AND IN EXPLAINING THIS, UH, UH, THE MAYOR NOTED THIS REALLY SPEAKS DIRECTLY TO OUR, ONE OF OUR PRIMARY CHARGES IS, UM, YOU KNOW, GOOD STEWARDS OF PUBLIC FUNDS AND TRYING TO KEEP MONEY WITHIN OUR, UM, OUR LOCAL ECONOMY.
SO I APPRECIATE THE WORK THAT YOU'VE DONE.
ALSO, REALLY GLAD TO SEE THE INCREASE FROM THREE TO 5,000, I'M SORRY, THREE TO 5% FOR LOCAL BUSINESSES AND CONTINUING TO INVEST IN OUR SMALL BUSINESS, OF COURSE IS A NECESSARY STEP.
CAN YOU PROVIDE AN EXAMPLE OF A DISCRETIONARY CONTRACT THAT, THAT THIS WOULD APPLY TO, UM, ANY DISCRETIONARY PRO, UM, CONTRACT THAT DOESN'T FALL UNDER STATE STATUTE.
UH, FOR EXAMPLE, UM, ANY CONSULTANT SERVICES, UM, THAT WE TAKE FORWARD, BASICALLY ON A DISCRETIONARY CONTRACT, YOU WOULD HAVE POINTS THAT WOULD BE APPLICABLE.
AND THE POINT STRUCTURE FOR A DISCRETIONARY CONTRACT WOULD BE YOU GET 10 POINTS IF YOU'RE HEADQUARTERED AND LOCAL.
IF YOU HAVE A SIGNIFICANT BUSINESS PRESENCE, UM, 20% OR A HUNDRED EMPLOYEES AND YOU CAN GET FIVE POINTS.
SO, AND YOU MENTIONED, UM, THERE'S CERTAIN CONTRACTS THAT DON'T QUALIFY FOR LOCAL PREFERENCE, I IMAGINE BECAUSE OF THE QUALIFIED, UM, THE Q B S LAWS.
UM, BASICALLY A LOT OF THOSE THAT IT'S NOT APPLICABLE TO ARE REALLY GONNA BE REALLY, 'CAUSE STATE STATUTE DOES NOT ALLOW THE PREFERENCE.
UM, YOU KNOW, WE TALK ABOUT A REQUEST FOR A COMPETITIVE SEAL PROPOSALS, FOR EXAMPLE, OR BEST VALUES, UM, A JANITORIAL OR A LANDSCAPING BID THAT WE PROCURE, LIKE THAT STATE STATUTE DOES NOT ALLOW,
[00:40:01]
EVEN THOUGH IT'S A DISCRETIONARY CONTRACT, IT'S A STATE GOVERNANCE, UM, PROCUREMENT, WE CANNOT, UM, APPLY A PREFERENCE TO IT.CONVERSELY, YOU COULD DO IT ON A LOW BID, BUT, UM, OR IT WOULD BE ALLOWED.
SO YOU MENTIONED LIKE PROFESSIONAL ENGINEERING SERVICES, THINGS LIKE THAT.
BUT, BUT YOU COULD, ON A LOW BID, YOU CAN ON A LOW BID, ON A LOW BID BASED ON STATE STATUTE, BASED ON THE THREE AND THE 5%, THAT'S WHERE THAT WOULD PLAY COME INTO PLAY.
I HAVE MORE QUESTIONS ABOUT THE FIRST, UM, THE, UM, HIGH PROFILE CONTRACTS.
UH, IF YOU'LL BEAR WITH ME 'CAUSE I'M, IT'S, IT'S NOT, I DON'T SIT ON THIS COMMITTEE, SO I THINK I'M PLAYING A LITTLE BIT OF CATCH UP.
BUT, UM, WOULD IF WE, YOU MENTIONED THE, THE INCREASE FROM A MILLION TO 5 MILLION AS FAR AS, UH, BRINGING IT TO THE COMMITTEE, RIGHT? IS IS THERE A, WOULD THERE, WHAT, WHAT'S THE, WHAT'S STOPPING US FROM JUST KIND OF MAKING THE LOW BID? UM, 5 MILLION INSTEAD OF A MILLION AND NOT THE LOW BID, I'M SORRY, THE MINIMUM AMOUNT.
THE REASON I BRING THAT UP IS BECAUSE I'M UNDERSTANDING WITH EVERY, WITH ALL THE COSTS THAT THAT, UM, UM, ENGINEERS AND, AND CONTRACTORS ARE DEALING WITH NOW INFLATION AND THEN OF COURSE SUPPLY COSTS AND SUPPLY CHAIN PROBLEMS, ALL OF THEIR COSTS ARE GOING UP.
SO IT, AND, AND IT'S A CUMBERSOME PROCESS OF COURSE, FOR THEM TO GO THROUGH HIGH PROFILE, UM, BIDDING.
IS IT POSSIBLE TO JUST RAISE THE THRESHOLD FROM 1 MILLION TO 5 MILLION FOR PURPOSES OF A HIGH PROFILE? JUST CHANGING THE DEFINITION, I GUESS, OF WHAT A HIGH PROFILE BID WOULD BE? YOU COULD, IF YOU CHANGED THE DEFINITION, IT WOULD IMPACT, UM, WOULD IMPACT POLITICAL CONTRIBUTIONS, FOR EXAMPLE.
UM, BECAUSE THE ETHICS CODE IS ACTUALLY TIED TO THE DEFINITION OF A HIGH PROFILE CONTRACT.
AND IF YOU WENT FROM A MILLION TO 5 MILLION, THEN IT WOULD RAISE THE BAR AS FAR AS, UM, WHERE POLITICAL CONTRIBUTIONS CAN BE MADE.
WHILE I APPRECIATE THAT, THAT'S NOT MY CONCERN.
I'M, I'M MORE LOOKING AT, UM, YOU KNOW, THIS, THIS WHOLE PROCESS DOESN'T KICK IN UNTIL 5 MILLION ACROSS THE STANDPOINT.
THAT'S EXACTLY WHAT WE'RE TRYING TO ACCOMPLISH.
THAT'S WHAT, THAT'S WHAT WE'RE PROPOSING.
I THOUGHT IT WAS JUST, YOU DON'T GO, YOU ONLY HAVE TO GO TO THE AUDIT COMMITTEE IF IT'S UP TO NO, THE, THE PRIOR PROCESS, ANYTHING ABOVE A MILLION, A MILLION DOLLARS AND SATISFIED, THOSE THREE CRITERIA WOULD GO TO THE AUDIT ACCOUNTABILITY COMMITTEE.
TYPICALLY IT WOULD BE PLACED ON THE CONSENTS AGENDA.
UM, THE, THE COMMITTEE HAD AN OPPORTUNITY TO PULL THOSE OFF THE CONSENT IF THEY WANTED TO HEAR SOMETHING.
VERY RARELY WERE THEY PULLED OFF THE, OFF THE CONSENT AGENDA.
SO, UM, IT'D BE AN EFFICIENCY FOR US BEING ABLE TO GET THOSE CONTRACTS OUT ON THE STREET EARLIER AND COMING TO COUNCIL EARLIER.
SO ESSENTIALLY WE WOULD BYPASS THE AUDIT ACCOUNTABILITY AND GO DIRECTLY TO COUNCIL FOR THOSE UNDER 5 MILLION.
AND WE'D LIKE, WE'RE PROPOSING THAT THAT MARK BE AT 5 MILLION.
SO WHAT TRIGGERS IT? WHAT, WHAT'S THE DEFINITION OF A HIGH PROFILE CONTRACT? UM, IT'S THAT ONE SLIDE OF, IT'S GONNA BE A MILLION DOLLARS OR MORE.
IT'S GONNA BE, SO THAT'S WHAT I'M SAYING.
WE RAISED THAT TO 5 MILLION, IS THAT WHAT Y'ALL ARE SAYING? NO, I'M TALKING ABOUT RAISING THE DEFINITION TO 5 MILLION AND, AND WE COULD, WE'RE NOT RECOMMENDING DOING THAT.
WE'RE RECOMMENDING FROM A PROCESS STANDPOINT BECAUSE WHY IT HAS THOSE OTHER, IT TRIGGERS OTHER THINGS AS FAR AS POLITICAL CONTRIBUTIONS.
YEAH, THAT AND THE OTHER THINGS, AND RAY HELPED ME OUT.
THE OTHER THINGS ARE THE ACTUAL, UM, UM, ORDINANCE IN PLACE ON CONTRIBUTIONS AND THE ETHICS ORDINANCE, THAT, THAT ORDINANCE IS TIED TO A MILLION.
THAT'S WHY, THAT'S WHY TROY'S RECOMMENDATION IS TO CHANGE THE PROCESS.
UM, AND CERTAINLY THAT, THAT COULD BE SOMETHING THE COUNCIL WOULD WANNA LOOK AT AMENDING OR ADJUSTING OR BRINGING UP TO SPEED OR UPDATING AS WELL.
I WOULD LIKE TO TALK ABOUT THAT MORE.
UM, I, I, UM, MET RECENTLY WITH A GROUP OF LOCAL ENGINEERS.
WE TALKED ABOUT HIGH PROFILE CONTRACTS AND, AND JUST SOME OF THE, THE, AS YOU KNOW, BUSINESS OWNERS, SOME OF THE, THE, THE, THE BARRIERS, I GUESS NOW TO, TO GET TO A HIGH PROFILE CONTRACT BECAUSE OF ALL THE COSTS THAT ARE GOING UP FOR THEM.
UM, THEY HAD SOME OTHER OBSERVATIONS.
AND I, I WANNA ASK YOU, I THINK NUMBER ONE I'D LIKE TO TALK ABOUT RAISING THE DEFINITION FROM ONE TO 5 MILLION.
UM, AND IT, I GUESS IT DOESN'T HAVE TO BE FIVE, BUT JUST KIND OF RAISING THAT, THAT FLOOR.
UM, BUT ALSO, IS IT POSSIBLE TO LIKE UNBUNDLE HIGH PROFILE CONTRACTS SO THAT YOU DON'T, INSTEAD OF IT, IF THERE'S THREE OR FOUR DIFFERENT, UM, INDIVIDUAL CONTRACTS IN THE R F Q THAT ARE LIKE, YOU KNOW, 200 EACH OR AT LEAST OVER A MILLION, CAN YOU UNBUNDLE THEM TO, TO GET UNDER THAT HIGH PROFILE CONTRACT? AND, AND WE HAVE BEEN DOING THAT IN SOME CASES.
UM, WORKING WITH, UM, SMALL BUSINESSES AND THE F C C FOR EXAMPLE, WE ALSO WORK WITH EACH CITY DEPARTMENT TO SEE IF THERE IS AN OPPORTUNITY TO UNBUNDLE AND WHERE YOU CAN DRAW THOSE LINES IN IN THE EVENT THAT OPPORTUNITY IS THERE.
WE'VE BEEN MOVING IN THAT DIRECTION.
AND THEN, UM, I MEAN I JUST, I THINK IT'S IMPORTANT TO, TO HEAR THOSE OBSERVATIONS BECAUSE THEY'RE DEALING WITH THE PROCESS FROM THE OTHER SIDE, AND A LOT OF THEM ARE SMALL BUSINESS OWNERS AND WE WANNA OF COURSE SUPPORT, UM, OUR SMALL BUSINESSES.
BUT, UM, JUST SOME OF THE, THE, THE CONDITIONS THAT ARE CREATED FOR OUR,
[00:45:01]
UH, FOR THE CITY'S, WELL, I DON'T MEAN CITY WITH THE BIG C, THE, THE, THE CONTRACTORS OUT IN, IN THE COMMUNITY, UM, TO DELIVER QUALITY PROJECTS.WE WANNA MAKE SURE THAT WE'RE DOING, OF COURSE, UH, AS MUCH AS WE CAN TO MAKE SURE THAT WE'RE GETTING A QUALITY PROJECT AT, UM, THE BEST COST.
AND, UM, BECAUSE OF SOME OF THE, THE PRICING IT TAKES JUST TO GO THROUGH THE PROCESS OR THE COST IT TAKES FOR, UM, A CONTRACTOR TO GO THROUGH THE PROCESS, SOMETIMES THE BID GOES UP.
SO I'M, I'M JUST CURIOUS IF THAT'S A WAY TO HELP ALLEVIATE SOME OF THOSE OTHER ISSUES.
UM, THE UNBUNDLING, WHICH I HEAR YOU'RE DOING NOW, BUT THEN EVEN JUST RAISING THE DEFINITION, UM, BY A FEW MILLION.
UM, SO I'D LIKE TO CONTINUE TO HAVE THAT CONVERSATION.
UM, BUT, AND MAYBE INVITE SOME OF THOSE FOLKS TO THE TABLE.
UM, JUST TO BE ABLE TO, I MEAN, BECAUSE WE JUST CAN'T DENY THAT THE, THAT THE COST FOR ALL BUSINESS OWNERS RIGHT NOW IS, IS GOING UP EXPONENTIALLY.
SO IF WE CAN HELP THE ECONOMY IN THAT WAY AS WELL, I THINK IT WOULD BE WORTH THE CONVERSATION.
UM, ON THE HIGH PROFILE CONTRACTS, UH, PRESENTATION, COULD YOU GO TO SLIDE EIGHT PLEASE? AND, UM, WHAT I'M LOOKING AT IS, YOU KNOW, THIS HIGH PROFILE ITEMS LESS THAN 5 MILLION WOULD BE PLACED DIRECTLY ON THE CITY COUNCIL, UH, CONSENT AGENDA.
AND SO THERE WAS AN ISSUE THAT I BROUGHT UP WHEN WE WERE LOOKING AT OUR, UM, WHEN WE WERE VOTING ON OUR BUDGET LAST YEAR, AND IT, I EXPRESSED INTEREST IN SOME KIND OF AN OUTSIDE EXPERT EVALUATION OF OUR PROCUREMENT PROCESS.
AND THAT'S SOMETHING THAT I'M STILL INTERESTED IN.
UM, YOU KNOW, I, I STRUGGLE WITH VOTING FOR, UH, A LOT OF PURCHASES AND PROCUREMENTS ON CONSENT, UM, WITHOUT HAVING SOME KIND OF AN OUTSIDE EVALUATION THAT IS, YOU KNOW, CERTIFYING OUR PROCESS OR SAYING WHAT DO WE DO? WELL, WHAT DO WE DO NOT, YOU KNOW, WHERE CAN WE MAKE IMPROVEMENTS, UM, YOU KNOW, FROM AN OUTSIDE INDEPENDENT EXPERT? AND I WOULD FEEL MUCH MORE COMFORTABLE IF WE WERE MOVING SOME OF THESE, UM, THRESHOLDS FROM 1 MILLION TO 5 MILLION WHERE WE'RE GONNA BE PUTTING MORE THINGS ON CONSENT IF WE HAD SOME KIND OF AN OUTSIDE EVALUATION.
UH, I'M NOT AN EXPERT ON PROCUREMENT PROCESSES.
I DON'T THINK WE HAVE MANY ON OUR COUNCIL.
AND, AND I THINK IT'S FOR TRANSPARENCY PURPOSES FOR, UM, THE, THE PUBLIC TO HAVE CONFIDENCE IN THE, YOU KNOW, IN HOW WE'RE INVESTING THEIR TAX DOLLARS.
I THINK THAT'S SOMETHING THAT WOULD BE, UH, VERY HELPFUL TO THE COMMUNITY.
UM, AND THEN ON, UH, SLIDE THREE, YOU WENT OVER THE HISTORY OF SOME OF THIS AND I SAW, UH, WAIT, I MISSED IT THERE ON SLIDE THREE, WHEN YOU TALKED ABOUT SEPTEMBER, 2019, THAT'S WHEN WE ESTABLISHED A SELECT HIGH PROFILE CATEGORY FOR B SESSION BRIEFINGS.
I REMEMBER THAT ALSO THIS ITEM GOING BEFORE THE ETHICS REVIEW BOARD AND BEING PRESENTED TO THEM.
AND THEN WE, IF YOU GO TO SLIDE NINE, UH, WHAT THE ETHICS REVIEW BOARD LOOKED AT WAS, UM, PROHIBITED CAMPAIGN CONTRIBUTIONS AND RESTRICTIONS ON COMMUNICATION.
AND SO I'M GONNA BE A LITTLE RUSTY 'CAUSE WE'RE GOING BACK TO 2019, AND THAT'S OKAY IF YOU'RE RUSTY TOO ON THIS.
BUT I DON'T RE I REMEMBER US NOT BEING REALLY WELL ALIGNED WITH SOME OF OUR PEER CITIES IN TERMS OF BLACKOUT PERIODS WHERE COMMUNICATION IS RESTRICTED BETWEEN LOBBYISTS AND CONTRACTORS AND THE COUNCIL MEMBERS.
AND SO, IF I REMEMBER IT CORRECTLY, THERE MIGHT BE THE BLACKOUT PERIOD ROUGHLY OPEN BEGINS WHEN THE, UM, WHEN WHEN THE CONTRACT IS ANNOUNCED AND THEN THE BLACKOUT PERIOD ENDS WHEN THE CITY POSTS AN AGENDA ITEM OF WHEN WE'RE GONNA VOTE AND ACTUALLY SELECT THEM.
AND SO IF IT'S, IF THE AGENDA ITEM, IF IT'S POSTED ON THE AGENDA FOR A VOTE TO FINALIZE WHO GETS THE CONTRACT, 72 BY LAW, WE HAVE TO DO IT 72 HOURS AHEAD OF TIME.
IF IT'S 72 HOURS, THEN THOSE LOBBYISTS AND CONTRACTORS HAVE 72 HOURS TO TRY AND MEET WITH US AND TELL US WHY WE SHOULD SUPPORT THEIR CONTRACT.
OR IF IT'S A WEEK BEFORE THEY HAVE A WEEK TO, AND I DON'T UNDERSTAND WHY WE WOULD HAVE A BLACKOUT PERIOD AND THEN OPEN IT UP ALL OF A SUDDEN FOR LAST MINUTE MEETINGS, PRIVATE MEETINGS WITH COUNCIL MEMBERS TO DISCUSS THOSE CONTRACTS.
I WAS GONNA WAIT FOR YOU FINISH.
UM, SO WHAT'S YOUR CONCERN? YOU, YOU, YOU WANT, SO NO BLACKOUT PERIOD OR YOU WANT A COMPLETE BLACKOUT PERIOD? YEAH, I, I THINK A COMPLETE BLACKOUT PERIOD, RIGHT.
[00:50:01]
WAY UP THROUGH THE ACTUAL VOTE.UM, BECAUSE OTHERWISE, UM, YOU KNOW, THE LOBBYISTS WHO HAVE BETTER RELATIONSHIPS WITH COUNCIL MEMBERS MIGHT BE ABLE TO GET THAT MEETING IN THOSE LAST THREE DAYS AND THE OTHER, THE OTHER CONTRACTORS MAY NOT.
AND SO, AND WHAT IS HAPPENING IN THOSE MEETINGS THAT ARE NOT IN THE PUBLIC.
UM, AND SO, YOU KNOW, FOR TRANSPARENCY SAKE, I THINK THAT'S THE DIRECTION WE SHOULD MOVE IN.
AND THEN, UM, I HAVE HEARD THAT SOMETIMES THERE'S OTHER INFORMATION THAT NEEDS TO BE SHARED, BUT I THINK COULD WE NOT DO THAT IN A B SESSION IN THE PUBLIC IF IT'S SUCH A HIGH PROFILE CONTRACT WHERE MAYBE CITY STAFF HAVE HAVE DETERMINED WHO THE FINALISTS SHOULD BE AND THEY CAN COME IN FRONT OF ALL OF US HERE IN PUBLIC AND ANSWER QUESTIONS IN FRONT, YOU KNOW, IN BROAD DAYLIGHT.
SO, UM, MY LAST, UH, COMMENT OR QUESTION IS ON YOUR OTHER PRESENTATION ON, UH, LOCAL PREFERENCE.
UM, AND I'M WONDERING WHAT IF THERE'S A BUSINESS THAT JUST ESTABLISHES, AND IT'S A LARGE BUSINESS, A LARGE CORPORATION, AND THEY JUST ESTABLISH, UH, A ONE-OFF L L C HERE IN OUR, IN OUR CITY, DO THEY QUALIFY AS A LOCAL CONTRACTOR? NO, BASED ON THE CURRENT ORDINANCE, YOU WOULD HAVE TO BE ESTABLISHED FOR A PERIOD OF A YEAR OR MORE.
BUT IF THEY'RE ESTABLISHED HERE, IT'S A YEAR OR MORE, BUT YOU KNOW, MAYBE IT'S A MAJOR CORPORATION, LET'S SAY I, YOU KNOW, AND I STRUGGLE TO COME UP WITH EXAMPLES, BUT YOU KNOW, I DON'T, I DON'T KNOW HOW A LOT OF CORPORATIONS ARE STRUCTURED, BUT LET'S SAY MCDONALD'S, RIGHT? MCDONALD'S IS A MULTINATIONAL CORPORATION, UH, BUT THEY HAVE INDEPENDENT FRANCHISES, RIGHT? AND SO IF THERE'S AN INDEPENDENT FRANCHISE HERE IN THE CITY OF SAN ANTONIO AND THEY WANT TO BID ON PROVIDING HAMBURGERS AT CITY COUNCIL MEETINGS OR SOMETHING LIKE THAT, YOU KNOW, ARE THEY A LOCAL, THEY'VE BEEN HERE FOR FIVE YEARS.
IS THAT MCDONALD'S A LOCAL CONTRACTOR? UNDER OUR DEFINITION, UNDER OUR DEFINITION, THE REASON WHY WE BIFURCATED THE POINTS BETWEEN 10 AND FIVE IS FOR THAT EXAMPLE, IF THEY'VE HAD A PRESENCE IN THE CITY OF SAN ANTONIO, BUT THEY'RE NOT HEADQUARTERED, THEY DESERVE SOME BENEFIT FROM A LOCAL PREFERENCE STANDPOINT.
SO UNDER DISCRETIONARY CONTRACT, THEY WOULD GET FIVE POINTS IF THEY ARE HEADQUARTERED HERE AND UM, THEY ALSO HAVE THEIR BASE HERE, THEY WOULD GET 10 POINTS.
SO WE TRY TO RECOGNIZE THAT THROUGH THE ALLOCATION OF THE POINTS BETWEEN, ON A DISCRETIONARY CONTRACT BETWEEN THE 10 AND THE FIVE.
THIS IS, UM, THIS IS SOMETHING THAT WAS BROUGHT UP BACK IN THAT TIMEFRAME IN 2014.
AND ONE OF THE REASONS WHY WE BROUGHT THE CONSULTANT IN BECAUSE THERE WAS CONCERN AT THE TIME ABOUT, UM, ABOUT GAMESMANSHIP, ABOUT COMPANIES BEING ABLE TO COME IN, A BIG CONTRACT COMES UP, UM, I DUNNO, LIKE A RIVER BARGE OR SOMETHING.
AND THEY ESTABLISH THEIR COMPANY HERE, HEADQUARTERED TO HERE, AND THEN THEY, UM, COME IN AND WIN THE CONTRACT BECAUSE THEY'RE GETTING THE BENEFIT ADDITIONAL POINTS.
SO WHEN WE HIRED THE CONSULTANT, ONE OF THE RECOMMENDATIONS WAS TO REALLY START MOVING DOWN THIS OTHER PATH, AS I MENTIONED.
UM, AND THEN, SORRY TO GO BACK TO THIS, UM, RESTRICTIONS ON COMMUNICATIONS, WHAT I'M GONNA CALL A LOOPHOLE, UH, AT THE LAST MINUTE WHERE WE END THE BLACKOUT AND ALL OF A SUDDEN THERE'S A FEW DAYS WHERE THEY, WHERE CONTRACTORS AND LOBBIES CAN CONTACT COUNCIL MEMBERS.
IF THAT WERE TO BE CLOSED, WHAT WOULD BE THE PATH FOR THAT? WOULD THAT GO TO ETHICS REVIEW BOARD OR IS THAT SOMETHING THAT COUNCIL WOULD DO? BECAUSE I KNOW THAT IT WAS IN FRONT OF THE ETHICS REVIEW BOARD AND THAT SEEMED TO BE A QUESTION BACK IN 2019.
SO COUNCILMAN I I THINK IT WOULD, UM, UM, PROBABLY BE A CHARGE COULD POSSIBLY BE A CHARGE THE COUNCIL GIVES THE ETHICS REVIEW BOARD TO DEVELOP, UH, ALTERNATIVES OR SUGGESTIONS FOR CONSIDERATION OF THE COUNCIL.
WE'RE THROUGH THE CITY ATTORNEY'S OFFICE, UM, AND THEN COMING BACK TO COUNCIL FOR THEIR CONSIDERATION.
ERIC, IF I MIGHT, AS FAR AS THE ETHICS REVIEW BOARD, THE ETHICS REVIEW BOARD RIGHT NOW IS GOING THROUGH THAT PROCESS OF REVIEWING THE ETHICS CODE.
IN FACT, THEY HAVE TWO SUBCOMMITTEES, ONE LOOK AT A CAMPAIGN, THE MUNICIPAL CAMPAIGN FINANCE CODE, AND THE OTHER IN THE ETHICS CODE.
SO THAT IS SOMETHING THAT THEY COULD BE CONSIDERING RIGHT NOW THEY HAVE NOT LOOKED SPECIFICALLY AT THE COMMUNICATION BLACKOUT PERIOD YET, BUT THAT'S SOMETHING WE CAN BRING UP TO THEM.
UH, THEY'RE GONNA COME TOGETHER THEN AS A FULL GROUP, COME UP WITH A COMMITTEE RECOMMENDATION THAT WOULD THEN GO TO THE COUNCIL PROBABLY THROUGH GOVERNANCE IS HOW IT WAS DONE, UH, FOUR YEARS AGO WHEN THAT WAS DONE.
AND I GUESS MY LAST POINT IS, UM, UH, COUNCILWOMAN KABE HDA MENTIONED, UH, UNBUNDLING OR DB BUNDLING CONTRACTS, AND I DO SUPPORT THAT WHERE IT MAKES SENSE.
COUNCILS MEMBER MCKEE RODRIGUEZ.
UM, I APPRECIATE THE PRESENTATIONS AS WELL AS THE CONVERSATIONS WE'RE HAVING RIGHT NOW.
UM, I WANNA ASK A VERY SIMPLE QUESTION ABOUT THE, UM, THE HIGH HIGH PROFILE PROCESS.
WHAT IS THE REASON THAT WE'RE SEEKING TO CHANGE IT? IS IT JUST TO GET LESS MEETINGS
[00:55:01]
AT AUDIT AND ACCOUNTABILITY OR? NO, I THINK THERE'S A COUPLE, A COUPLE REASONS.WE WENT BACK AND I SHOWED YOU THAT, UM, BAR CHART CONSISTENTLY THAT CONSENT AGENDA IS, UM, GONNA BE KIND OF THE, THE ROUTINE KIND OF, THEY DON'T HAVE A HIGH, YOU KNOW, NOT HIGHLY COMPLEX.
THEY'RE NOT, UM, HAVE A HIGH LOT OF COMMUNITY INTEREST.
BUT WHAT IT ALLOWS US TO DO IS A COUPLE THINGS.
IT ALLOWS US TO GET THE SOLICITATION OUT ON THE STREET QUICKER.
UM, IT ALLOWS US TO GET TO COUNCIL QUICKER.
BUT MORE THAN THAT, FROM A STAFFING STANDPOINT, THROUGH EFFICIENCIES THAT WE HAVE IN THAT WE ARE NOT, YOU SAW THE NUMBER OF ITEMS WE HAVE TO DO, A PRES SOLICITATION STAFF IS RUNNING THROUGH THAT.
WE HAVE TO DO A POSTS SOLICITATION.
THIS ALLOWS US FOR THOSE ROUTINE, WHAT I'M CALLING THE ROUTINE ITEMS, REALLY JUST FOCUS ON GETTING 'EM THROUGH THE PROCUREMENT PROCESS AND GETTING 'EM TO THE COUNCIL FOR THEIR CONSIDERATION AND APPROVAL.
SO THOSE THREE THINGS ARE REALLY WHY, UM, I THINK THERE'S A BENEFIT AND EFFICIENCY TO DOING THAT.
I JUST WONDER, BECAUSE I KNOW THERE'S BEEN ITEMS, UM, AT AUDIT AND ACCOUNTABILITY.
I, I SERVE ON AUDIT AND ACCOUNTABILITY THAT I KNOW I'VE PULLED, I, UH, THE CHAIR, COUNCILMAN PERRY HAS PULLED ITEMS. UM, AND SO I, AND IT'S HARD TO THINK BACK AND REMEMBER, IS THIS ONE THAT WOULD BE PULLED THAT WOULD NOW NO LONGER GO TO AUDIT ACCOUNTABILITY? AND IS THAT A CONCERN? AND SO THE OTHER, THE OTHER POINT I WOULD MAKE IS, UM, YOU KNOW, IN THE PRESENTATION THAT LAST SLIDE, IT SHOWS THOSE ITEMS FOR Y'ALL'S CONSIDERATION THAT ARE, THAT I'M BASED ON, OUR JUDGMENT, BASED ON OUR EXPERIENCE ARE FAIRLY ROUTINE.
AND THERE'S SOMETHING IN THERE THAT PEAKS Y'ALL'S INTEREST.
I MEAN, YOU HAVE THE ABILITY, UM, TO DIRECT STAFF AND WE CAN MOVE THAT UP, UM, INTO THE AUDIT ACCOUNTABILITY OR TO A B SESSION.
SO THAT'S WHY WE'RE PRESENTING THE FORECAST FOR Y'ALL'S CONSIDERATION.
UM, I GUESS A QUESTION THAT I'VE HAD ABOUT, UM, COMMUNITY INTEREST AND WHAT A HIGH LEVEL OF COMMUNITY INTEREST IS, IS, DO WE HAVE A EXACT DEFINITION OF THAT? 'CAUSE I IMAGINE IT'S, UM, AND YOU'RE EXACTLY RIGHT.
THERE'S NOT AN EXACT LINE OF, YOU KNOW, ONCE YOU CROSS THIS LINE, THERE'S A HIGH COMMU, HIGH LEVEL OF COMMUNITY INTEREST.
I MEAN, TO BE HONEST, IT'S BASED ON, BASED ON OUR PAST EXPERIENCE WITH THESE ITEMS, WE, UM, AS STAFF, I THINK, UM, BASED ON OUR EXPERIENCE, WE KNOW, I THINK WE HAVE A GOOD SENSE OF WHAT'S IMPORTANT TO YOU ALL INDIVIDUALLY AND COLLECTIVELY AS A COUNCIL.
UM, AND BASED ON THAT EXPERIENCE, WE'RE, WE'RE DRAFTING OUR RECOMMENDATIONS IN THE TERM, IN THE FORM OF THE FORECAST.
AND ALSO Y'ALL HAVE THAT OPPORTUNITY THAT IF Y'ALL DONT AGREE WITH OUR RECOMMENDATIONS, THEN WE CAN MOVE THOSE ITEMS WHEREVER Y'ALL SEE FIT.
I GUESS WHAT I WONDER IS, WOULD IT BE POSSIBLE TO CREATE SOME SORT OF, UM, LIKE A DASHBOARD WHERE HIGH PROFILE SOLICITATIONS COULD, UM, COULD LIVE.
AND PEOPLE CAN SEE THE, I WANT PEOPLE TO HAVE THE OPPORTUNITY TO DEMONSTRATE A HIGH LEVEL OF COMMUNITY INTEREST BECAUSE THERE HAVE BEEN SOME, THERE'S BEEN SOME TIMES, AND I THINK THIS PAST YEAR, PAST YEAR AND SOME CHANGE NOW, WE'VE HAD EXPERIENCES WHERE, UM, COMMUNITY SHOWS UP AND THEY'RE ANGRY ABOUT SOMETHING AND IT'S, OH, WELL, I, CITY STAFF IS DUMBFOUNDED.
CITY COUNCIL MEMBERS ARE DUMBFOUNDED.
'CAUSE IT'S, YOU'VE NEVER DEMON, YOU'VE NEVER SEEMED BOTHERED BY THIS ITEM BEFORE.
SO I, I IMAGINE THAT CAN CONTINUE TO HAPPEN.
AND SO I WONDER, IS THERE A POSSIBILITY OF DOING SOMETHING LIKE THAT? AND THERE IS, AND CURRENTLY ON THE, THE CITY'S WEBSITE, WE HAVE, UM, ALL OF OUR HIGH PROFILE SOLICITATIONS ARE LISTED AND, UM, IT LISTS THE DETAIL.
YOU CAN ACTUALLY HAVE ACCESS TO THE, UM, THE SOLICITATION.
IT OUTLINES THE RESTRICTIONS ON COMMUNICATIONS WHEN THEY START, WHEN THEY STOP, UM, POLITICAL CONTRIBUTIONS, WHEN THEY START, WHEN THEY STOP.
AND THERE'S ALSO ANOTHER, UM, DOCUMENT, I CAN'T REMEMBER THE NAME, MICHAEL, BUT IT'S A PUBLICATION THAT HAS ALL OF OUR PROCUREMENTS, NOT JUST THE HIGH PROFILE PROCUREMENTS THAT PEOPLE ACTUALLY GO LOOK AT.
UM, IF THERE'S INTEREST, THEY KNOW IT'S COMING AND IF THERE'S QUESTIONS, THEY CAN ASK QUESTIONS OR THEY CAN ALSO PLAN TO PROPOSE ON THOSE ITEMS AS THEY COME UP.
MY LAST, MY LAST COMMENT ON THAT IS GONNA BE JUST FOOD FOR THOUGHT IS AS WE TRANSITION THE WEB, 'CAUSE THE WEBSITE, THE SAN.GOV WEBSITE IS CHANGING, WE WANNA MAKE SURE THAT THINGS LIKE THAT ARE AS ACCESSIBLE AND USER FRIENDLY AS POSSIBLE.
NOT JUST FOR FOLK WHO ARE FAMILIAR WITH THE BIDDING PROCESS AND SOLICITATION PROCESS, BUT FOR THE AVERAGE EVERYDAY PERSON WHO WANTS TO KNOW, YOU KNOW, WHAT'S GOING ON WITH THEIR TAX DOLLARS.
AND MY TEAM AND I HAD THAT DISCUSSION JUST YESTERDAY AS WE'RE TALKING ABOUT THE FINANCE WEBSITE AND THE CITY'S WEBSITE.
AND THEN I GUESS, UH, THE NEXT ONE WOULD BE THE LOCAL PREFERENCE PROGRAM.
I AM SUPER EXCITED ABOUT THIS ONE.
THERE WAS A, A MOMENT OF CONFLICT, UH, WHEN, UM, A SMALL, A LOCAL BUSINESS OWNER HAD COME AND WANTED TO TALK ABOUT THE PROCESS.
AND THEN WE STARTED GETTING INTO THE, WE STARTED DIGGING DEEPLY INTO, YOU KNOW, WHEN DO WE GIVE PREFERENCE TO LOCAL, LOCAL,
[01:00:01]
UH, LOCAL BUSINESSES AS OPPOSED TO LARGER ONES.UM, AND IT WAS DISCOVERED THAT IT'S, YOU KNOW, THE STATE ALLOWS UP TO 5%, BUT WE, WE WERE LIMITING OURSELVES AT 3%.
AND SO ASKED IF, YOU KNOW, WE ASKED THE QUESTION, WHAT WOULD HAPPEN IF, YOU KNOW, THIS PAST YEAR IF WE HADN'T ADJUSTED IT TO 5%, HOW MANY OPPORTUNITIES WOULD THAT BE? AND I THINK THIS SLIDE IS, THIS IS THE MOST RE THIS IS UPDATED FOR THIS.
YEAH, FOR 2022, IT WAS, UM, IT'S NOT AS MUCH BENEFIT, BUT IT'S, UM, SLIDE 13, I BELIEVE.
DID YOU GIVE US A DIFFERENT ONE? IT WAS 2021.
IT WAS A CRAZY, IT WAS A CRAZY DIFFERENCE.
AND THERE WAS A LITTLE BIT OF A DIFFERENCE ON THAT ONE.
BUT REMEMBER THAT YEAR OVER YEAR IT'S GONNA CHANGE.
AND BASED ON THE CHALLENGES THAT WE'RE HAVING NOW, IT REALLY IS INFLUENCING KIND OF OUR PROCUREMENT.
SO I THINK YOU'RE GONNA SEE YEARS WHERE THERE'S GONNA BE A LOT OF PROCUREMENTS GOING TO LOCALS JUST BASED ON KIND OF THE CYCLICAL, UM, NATURE OF OUR, UH, PROCUREMENTS.
AND THERE'S GONNA BE SOME YEARS THAT IT'S GONNA BE LIMITED.
BUT, UM, BASED ON SOME OF THE THINGS THAT WE TALKED ABOUT TODAY THROUGH THEB BUNDLING, WE ALSO HAVE AN OPPORTUNITY IN OUR BIDS.
AND SO WE CAN, BASED ON HOW WE PROCURE, WE CAN INFLUENCE HOW WE CAN MAKE ADDITIONAL OPPORTUNITIES FOR LOCAL, BUT NOT JUST LOCAL, BUT FOR VETA AS WELL.
AND I GUESS I, I'LL I'LL SAY ONE OF THE REASONS THAT I'M SUPER EXCITED AND I SAID AT THE LAST AUDIT AND ACCOUNTABILITY MEETING IS THAT WE GET TO SEE THIS THROUGH TO A PROCESS WHERE THERE'S A CONFLICT, UM, AT THE COMMITTEE LEVEL, NOT BETWEEN MEMBERS OF THE COMMITTEE, BUT THERE'S JUST AN ISSUE THAT NEEDS TO BE RESOLVED.
WE GET TO THE BOTTOM OF WHAT IS THE ROOT OF THAT PROBLEM.
WE ASK CITY STAFF TO COME UP WITH A SOLUTION, UH, OR AN AMENDMENT TO ORDINANCE, WHATEVER THAT SOLUTION'S GONNA LOOK LIKE AND BRING IT BACK TO US.
AND I FEEL LIKE WE GOT TO SEE IT, LIKE WE GOT TO SEE IT, AND IT'S GONNA MAKE A DIFFERENCE IN MILLIONS OF DOLLARS TO OPPORTUNITY, UH, AND OPPORTUNITY FOR LOCAL SMALL BUSINESSES AND FOR PEOPLE IN SAN ANTONIO.
SO IT'S JUST SUPER EXCITING, UH, GRATEFUL.
I LOOK FORWARD TO ONE DAY GETTING TO VOTE ON THIS.
I WOULD SUPPORT, UM, I DON'T KNOW IF NOW WOULD BE THE TIME TO TALK ABOUT THAT, LIKE A BLACKOUT PERIOD, BUT I, I AGREE THAT THAT SMALL WINDOW SHOULD BE CLOSED AND LET'S JUST BLACK OUT BLACKOUT.
THERE WAS SOMETHING ELSE I'M TRYING TO REMEMBER THAT COUNCILMAN CAB BERDA HAD MENTIONED.
SO RAISING THE LIMIT TO 5 MILLION.
CAN YOU TALK ABOUT, UM, SOME OF THE, WHAT ARE THE, WHAT MAKES IT DIFFERENT FROM ANY OTHER KIND OF SOLICITATION AS FAR AS COST GOES TO CONTRACTORS? OR LIKE, WHAT BARRIERS DO THE CONTRACTORS HAVE IF IT IS A HIGH PROFILE VERSUS NON I DID YOU OR, I MEAN, I'D HAVE TO GO BACK AND LOOK.
I'M, OR AS, THAT MAY BE A QUESTION FOR THE CONTRACTORS.
I MEAN, 'CAUSE YOU'RE ASKING, I'M NOT SURE WE, WE ACTUALLY KNOW IT, IT DEPENDS ON THE TYPE OF WORK THEY'RE DOING.
UM, AND THEN, AND THEN THERE'S TWO ISSUES HERE.
THERE'S THE, THERE ARE THE ETHICS ORDINANCE REQUIREMENTS FOR REPORTING AND CONTRIBUTIONS.
AND THEN THERE'S THE PROCESS ADJUSTMENTS THAT WE'RE RECOMMENDING HERE, JUST IN TERMS OF CATEGORIZING AND, AND BEING A LOT MORE EFFICIENT WITH HOW WE COME THROUGH THE COMMITTEE AND THE COUNCIL.
UM, BUT I'M NOT SURE WE CAN ANSWER THAT QUESTION.
UH, COUNCILMAN, I WOULD LOVE TO HAVE A CONVERSATION WITH YOU ABOUT IT AT SOME POINT SO YOU CAN SHARE WHAT, UH, WAS SHARED WITH YOU DURING YOUR MEETING.
I, MY INITIAL THOUGHT IS KIND OF, IS ONE OF HESITANCY, UM, BECAUSE THERE'S A BALANCE, RIGHT? OF, UM, YOU KNOW, TRANSPARENCY AND ACCOUNTABILITY AND THEN EFFICIENCY.
AND SO IF THERE'S A SUBSTANTIAL DETRIMENT TO BIDDERS, YOU KNOW, TO SMALL BUSINESSES SPECIFICALLY, THEN I WOULD LIKE TO HAVE A CONVERSATION ABOUT RAISING IT.
BUT I AM HESITANT AT THE MOMENT.
COUNCIL MEMBER MCKEE RODRIGUEZ.
UH, TROY, THANK YOU VERY MUCH FOR PUTTING THIS TOGETHER AND BRINGING THIS TO, UH, THIS SPECIAL SESSION HERE.
WE'VE BEEN TALKING, AS YOU KNOW, WE'VE BEEN TALKING ABOUT THESE FOR A LONG TIME.
AND, UM, UM, WHAT WE'RE TRYING TO DO HERE THROUGH THE AUDIT AND ACCOUNTABILITY MEETING HERE IS TRYING TO STREAMLINE THE PROCESS A LITTLE BIT TO TRY TO GET THROUGH SOME OF THIS BUREAUCRACY A LITTLE BIT QUICKER, UM, TO GET THINGS DONE MORE QUICKLY.
BECAUSE, UH, WHEN YOU'RE DEALING WITH CONTRACTS AND PEOPLE BIDDING ON CONTRACTS AND WAITING ON SERVICES OR GOODS OR CONSTRUCTION TIME EQUALS WHAT TIME EQUALS MONEY.
AND THE LONGER WE STRING THESE THINGS OUT, THE MORE IT COSTS AND THE MORE IT COSTS FOR US AND
[01:05:01]
MORE IT COSTS FOR THE, FOR THE SUPPLIERS OF WHATEVER, WHATEVER IT IS WE'RE BUYING.SO I'M, I'M 100% BEHIND THAT, BUT I ALSO WANT TO TAKE A LOOK AT, OF RAISING THAT UP TO $5 MILLION.
BUT I'D ALSO LIKE TO LOOK AT THE DEFINITION ON THAT, UH, ON WHAT, THROUGH THE ETHICS COMMITTEE.
AND I HOPE THAT THEY COME BACK WITH SOME GOOD COMMON SENSE, UH, CHANGES TO OUR ETHICS, UM, UH, RULES.
BECAUSE THERE'S SOME THINGS OUT THERE THAT ARE VERY, VERY RESTRICTIVE.
IT'S ALMOST DRACONIAN, YOU KNOW, CUT OFF THEIR ARM IF THEY DO THIS OR DO THAT, UH, WITHOUT REALLY LOOKING AT IT AND SEEING WHAT THE CONSEQUENCES ARE OF SOME OF THE RULES THAT WE'VE PLACED ON OURSELVES AND CONTRACTORS OUT THERE THAT HAVE TO KEEP TRACK OF ALL THIS.
AND I'M TALKING ABOUT CAMPAIGN DONATIONS.
UM, YOU KNOW, JUST THINK ABOUT HOW MANY DIFFERENT RACES THERE ARE AND THE CONTRIBUTION LIMITS AND THE CONTRIBUTION TIMELINES AND ALL THAT FOR ALL OF THESE THINGS.
AND, AND I'M SAYING THAT BECAUSE ME AS A CANDIDATE, I DON'T HAVE THE RESOURCES IN MY OWN BANK ACCOUNT TO RUN A CAMPAIGN.
WE ALL AROUND THIS TABLE RELY ON CAMPAIGN DONATIONS.
IT, IT, IT'S VERY RESTRICTIVE WHAT WE HAVE AS THE RULES TODAY THAT I THINK, UH, AND I HOPE THAT THE ETHICS COMMITTEE DOES TAKE A LOOK AT THIS TO, YOU KNOW, NOT RESTRICT IT DOWN AS MUCH AS IT HAS BEEN OVER THE YEARS.
KEVIN, DID YOU WANT TO MAKE A COMMENT ON THAT? I, I JUST WANNA MAKE ONE CLARIFYING COMMENT.
I THINK THAT'S, UH, BEEN SHARED A COUPLE OF TIMES.
THE ETHICS CODE RECOGNIZES HIGH PROFILE CONTRACTS, AND ONCE A CONTRACT IS DI IDENTIFIED AS HIGH PROFILE, THEN VARIOUS RESTRICTIONS KICK IN THE DEFINITION OF HIGH PROFILE IS NOT INVOLVED IN THE ETHICS CODE.
THAT IS SOMETHING SET BY CITY STAFF, SET BY FINANCE.
I JUST WANNA MAKE SURE THAT WE'RE CLEAR ON THAT.
THE ETHICS CODE CAN DEAL WITH PROCESSES, BUT THEY'RE NOT TOUCHING THE LIMIT.
THAT'S, THAT'S NOT THUNDER'S CODE.
WELL, AND AND THAT'S WHY I'M SAYING WE NEED TO TAKE ANOTHER LOOK AT THAT.
AND I WOULD CERTAINLY BE, UM, UM, WILLING TO ENTERTAIN THE, THE $5 MILLION LIMIT ALSO ON THE HIGH PROFILE CONTRACTS IN, IN HOW THE ETHICS COMMITTEE THEN LOOKS AT THAT.
SO, UM, THAT'S ON THE HIGH PROFILE, UH, THE LOCAL PREFERENCE.
WE'VE TALKED ABOUT THAT FOR A WHILE, AND I THINK WE SHOULD, UH, RAISE THAT UP TO THE MAXIMUM, WHAT, WHAT WHAT WE'RE ALLOWED TO DO HERE LOCALLY FOR OUR CONTRACTORS HERE IN SAN ANTONIO.
'CAUSE REMEMBER, OVER 95% OF OUR BUSINESSES HERE IN SAN ANTONIO ARE SMALL BUSINESSES.
AND, AND I THINK WE NEED TO GIVE THEM ALL THE BREAKS THAT WE CAN TO KEEP THE AWARDS HERE LOCALLY.
UM, THE, YOU KNOW, THERE WAS SOME TALK ABOUT THE NONPROFITS AND TROY, I, THAT'S AN ARGUMENT I'VE BEEN MAKING FOR A LONG TIME BECAUSE I'VE SEEN NONPROFITS BEING AWARDED CITY DOLLARS CONTRACTS AND ALSO GETTING CITY TAX DOLLARS OR OTHER TAX DOLLARS TO HELP SUBSIDIZE THEIR, THEIR BUSINESS AT WHATEVER LEVEL, UM, THAT THEY'RE IN A BETTER COMPETITIVE POSITION IN GETTING AWARD VERSUS, UM, A FOR-PROFIT BUSINESS.
I MEAN, A FOR-PROFIT BUSINESS, THEY EMPLOY PEOPLE JUST AS MUCH AS NON-PROFITS.
YOU KNOW, WHETHER YOU'RE A NON-PROFIT OR FOR-PROFIT, YOU'RE EMPLOYING CITIZENS HERE IN SAN ANTONIO.
SO WHEN YOU TAKE A LOOK AT THOSE OTHER, OTHER ITEMS OR CRITERIA, WHY ARE WE SUBSIDIZING THEIR BUSINESS AND PLUS GIVING THEM ADDITIONAL POINTS OR WHATEVER TO COMPETE FOR BUSINESS AGAINST FOR-PROFIT BUSINESSES THAT ARE TRYING TO MAKE A PROFIT TO EXPAND OR OFFER BETTER WAGES, SO ON AND SO FORTH IN, IN, WITH THEIR BUSINESS.
SO I'M, I'M, I'M DEFINITELY AGAINST THAT, AND I'D LIKE TO SEE THAT CHANGED.
AND WE CAN CERTAINLY TALK ABOUT THAT MORE, BUT I'D LIKE TO SEE SOME DATA TO, TO SHOW THAT HOW MANY CONTRACTS HAVE WE AWARDED TO NONPROFITS THAT ARE ALSO DELEGATE AGENCIES OR RECEIVE TAX BREAKS HERE IN SAN ANTONIO THAT HELP THEM HAVE MORE OF A COMPETITIVE EDGE WHEN IT COMES TO SOLICITATIONS THAT THEY'RE BIDDING AGAINST FOR-PROFIT COMPANIES.
SO, UM, YEAH, THAT'S STILL A BIG CONCERN OF MINE.
UH, OTHER THAN THAT, THOSE ARE, THOSE ARE THE MAIN ISSUES THAT, UH, I'M SUPPORTING.
STILL SOME THAT I HAVE A CONCERN ABOUT.
BUT AGAIN, I, I THINK WE HAVE SOME VERY RESTRICTIVE, UM, REQUIREMENTS WHEN IT COMES TO ETHICS AND HOW WE DO OUR BUSINESS HERE IN
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SAN ANTONIO.AND I HOPE, AGAIN, THAT THE ETHICS COMMITTEE COMES BACK WITH SOME GREAT RECOMMENDATIONS AND CHANGES FOR A LOT OF AREAS, WHAT THEY'RE, WHAT THEY'RE DEALING WITH RIGHT NOW.
THAT'S ALL I HAVE RIGHT NOW, SIR.
WAIT, WAIT, CAN I GET YOUR TIME BACK IN? I STILL HAD A LITTLE BIT OF TIME.
THE OTHER THING AND, UH, ABOUT THE PROCESS OF SOLICITATIONS AS A WHOLE AND THE EVALUATION PROCESS.
YOU KNOW, I SPENT, YOU KNOW, CLOSE TO 40 YEARS BOTH ON THE GOVERNMENT SIDE AND PRIVATE INDUSTRY SIDE ABOUT THE SOLICITATION PROCESS.
AND I THINK HERE IN SAN ANTONIO, WE'VE GOT AN EXCELLENT PROCESS THAT WE FOLLOW IN SOLICITING CONTRACTS HERE.
UM, AND PEOPLE DON'T REALIZE, BUT WE HAVE LAWS AND REGULATIONS THAT WE HAVE TO FOLLOW.
SO WE HAVE VERY LITTLE WIGGLE ROOM ON WHAT WE CAN AND CAN'T DO DURING A SOLICITATION AND EVALUATING THOSE, MAKING THE AWARDS, AND THEN AFTER THE AWARDS, ACTUALLY WATCHING THESE CONTRACTS AND MAKING SURE THAT THEY'RE EXECUTED PROPERLY.
SO I JUST WANTED TO PUT THAT IN THERE, THAT SINCE, SINCE I'VE BEEN ON COUNCIL, I'VE WATCHED SOME MODIFICATIONS OVER TIME, UH, WHERE WE'RE TRYING TO, UM, HELP CONTRACTORS IN PUTTING PROPOSALS TOGETHER AND HOW WE EVALUATE 'EM AND HOW WE AWARD 'EM.
AND THEN AFTER THE AWARDS, MAKING SURE THAT THEY UNDERSTAND WHY THEY DID OR DIDN'T GET, GET AN AWARD, HAVING THAT AVAILABLE TO THEM AS WELL.
SO I, I THINK WE GOT AN EXCELLENT PROCESS HERE.
IS THERE ROOM FOR IMPROVEMENT? YEAH, BUT THERE'S NOT A LOT OF ROOM.
IT'S JUST TWEAKING THE SYSTEM.
MAYBE, UH, BECAUSE WE HAVE THAT, THAT NARROW LANE THAT WE HAVE TO ACCOMMODATE FOR STATE LAWS, FEDERAL LAWS, EVERY LAW IN THIS NATION ALWAYS GOES TOWARDS CONTRACTING BECAUSE YOU'RE DEALING WITH A LOT OF MONEY, WITH A LOT OF TAX DOLLARS.
SO WE, WE DON'T HAVE A LOT OF WIGGLE ROOM FOR THAT.
I'M, I, I'M GONNA ASK I, AND, AND I'D BE THERE WITH YOU ALL.
I'M ON THE VERY TAIL END OF A BOUT OF COVID.
UM, AND SO I'M GONNA, I, I'D, AND I'D ASK IS IF JEFF COYLE IS IN THE ROOM, UM, AND, AND IF HE IS, I, I'VE JUST GOT A, A BRIEF QUESTION AND, AND I'LL SET IT UP THIS WAY, JEFF.
YOU KNOW, WE SAW, AND EVERY ONCE IN A WHILE WHEN WE TALK ABOUT THE LOCAL PREFERENCE OR WE TALK ABOUT CONTRACTING THE ISSUE OF VETERAN CONTRACTING, UM, YOU KNOW, WE'RE GIVING VETERAN PREFERENCE POINTS, UM, COMES UP AND CAN YOU REMIND US, I, I, I BELIEVE IT WAS THE 2015 LEGISLATIVE SESSION THAT, THAT A CONVERSATION AT THE DAIS, LIKE THE ONE WE'RE HAVING TODAY, UM, LED TO US, UM, DRAFTING THE LEGISLATIVE AGENDA TO INCLUDE THAT.
NOT THE VETERANS' PREFERENCE, BUT THE LOCAL PREFERENCE, THE STATUTE THAT TROY MENTIONED THAT DOES NOT ALLOW US TO OFFER A LOCAL PREFERENCE.
THE REQUEST FOR COMPETITIVE SEAL PROPOSALS.
IN THE LEAD UP TO THE 84TH SESSION IN 2015, THE FINANCE DEPARTMENT CAME TO US AND PROPOSED A CHANGE TO THAT STATE LAW TO ALLOW FOR A LOCAL PREFERENCE.
AND SO WE TOOK IT TO THE LEGISLATURE.
REPRESENTATIVE BERNAL FILED A BILL, UM, SENATOR MENENDEZ CARRIED IT, IT GOT THROUGH BOTH CHAMBERS.
AND THEN AFTER THE SESSION, GOVERNOR ABBOTT VETOED THE BILL, UH, ARGUING THAT, UH, IT WAS OUR OBLIGATION TO AWARD THE BEST VALUE.
AND, AND THE GOVERNOR DIDN'T WANT US, UH, STEERING IT TO PREFERRED VENDORS, IN OUR CASE, LOCAL VENDORS.
UH, SO, UM, WE HAVE TALKED SINCE ABOUT VETERANS' PREFERENCES, BUT BEFORE PAST SESSIONS, WE'VE GONE TO THE GOVERNOR'S OFFICE AND HAD THAT CONVERSATION AGAIN, AND NOTHING'S CHANGED.
SO WE'VE NOT EXPENDED THE, THE ENERGY IN ANY SUBSEQUENT SESSIONS TO TRY TO BRING A BILL FORWARD KNOWING THAT IT WOULD PROBABLY MEET THE SAME FATE.
IS THAT YOUR QUESTION? YEAH, IT DOES.
SO, UM, A, A AGAIN, I THINK THAT WHEN WE TALK ABOUT LOCAL PREFERENCE, UM, YOU KNOW, IT, IT'S, IT'S EVIDENT THAT THIS DISCUSSION ISN'T JUST AN INSULAR ONE THAT HAPPENS AT AUDIT AND ACCOUNTABILITY, BUT THAT IT, YOU KNOW, IT EXTENDS TO OTHER COMMITTEES.
UM, AND, YOU KNOW, IT, IT, IT MAKES ME SAD THAT WE DON'T GET THAT FLEXIBILITY FROM THE STATE.
I MEAN, OUR, OUR KEY FUNCTION AS LOCAL REPS IS TO BLOCK AND TACKLE AND ADVOCATE ZEALOUSLY FOR, UM, THE LOCALS AND FOR THAT MONEY STAYING WITHIN OUR ECONOMY.
AND IT SEEMS LIKE, UM, GOVERNOR ABBOTT THINKS HE'S GOT A DIFFERENT JOB.
UM, SO WE, UM, UH, WHICH, WHICH BRINGS ME ERIC AND BEN, THE REASON I'M ENTHUSIASTIC TODAY, ERIC, IS, UH, THAT I HAVE, UM, I, I SEE ON,
[01:15:01]
ON THE TWO DIFFERENT SLIDES THAT DISCUSSION ABOUT, AND THE RECOMMENDATION THAT WE INCLUDE, UM, AS LOCAL BIDDERS, UM, NONPROFITS.AND SO TO ME, UM, YOU KNOW, I STILL TO THIS DAY HAVE MANY OF THEM AS CLIENTS.
AND YOU KNOW, WHAT I KNOW ABOUT THEM IS THE MONEY STAYS HERE LOCALLY.
UM, THE EMPLOYEES FOR ALMOST EVERY NONPROFIT ARE SAN ANTONIANS.
UM, AND WHEN THAT MONEY STAYS HERE LOCALLY, IT CIRCULATES AROUND THE ECONOMY, UH, BECAUSE THESE NONPROFITS, YOU KNOW, BUY SERVICES, THEY PAY C P S AND SAWS, THEY, UM, AND, UH, THEY BUY MATERIALS AND ALL THAT.
AND SO I THINK THAT THE LIGHTHOUSE FOR THE BLIND, FOR EXAMPLE, IS A PERFECT EXAMPLE.
THERE'S NO REASON WE OUGHT NOT TO BE BUYING, UH, OUR PAPER, UH, AND OUR PENS FROM THEM.
IF THEY OFFER THE BEST COMPETITIVE ADVANTAGE, UH, I'M SORRY, IF THEY OFFER US THE BEST PRICE.
I MEAN, AT THE END OF THE DAY, IT'S NOT LIKE WE'RE SAYING WE'LL PAY MORE.
WE'LL, WE'RE JUST SAYING THAT WE'RE GONNA BE, UM, YOU KNOW, IN CALLING THEM WHAT THEY ARE, WHICH IS LOCAL.
UM, AND SO I DON'T THINK THAT WE'RE, UH, PITTING ONE GROUP AGAINST THE OTHER.
UM, I THINK WE'RE JUST DEFINING A LOCAL, OR A LOCAL BIDDER AS WHAT IT IS A LOCAL BIDDER.
AND SO TREATING OUR NONPROFITS AS IF OUR LOCAL NONPROFITS WERE FROM HOUSTON OR AUSTIN, WHEN THEY'RE NOT, ALSO IS A LITTLE BIT DISHONEST.
UM, AND I, I DON'T WANT TO DO THAT.
UH, AND SO I, I, UH, I SUPPORT WHAT YOU GUYS HAVE PRESENTED TO US TODAY AND, UM, I LO I LOOK FORWARD TO, TO HEARING WHAT MY COLLEAGUES HAVE TO SAY ABOUT IT.
I TOO AM SUPPORTIVE OF THE LOCAL PREFERENCE PROGRAM AND MAKING, UH, THE ADJUSTMENT TO PROVIDE MORE POINTS FOR LOCAL PREFERENCE.
AND I AGREE, UH, WITH WHAT I'VE JUST HEARD FROM MY FELLOW COUNCIL MEMBER, THAT WE OUGHT TO GO AHEAD AND LOOK AT NONPROFITS AND LOCAL BUSINESSES, FIRST AND FOREMOST, TO KEEP THAT MONEY HERE IN SAN ANTONIO, CIRCULATING AND HELPING THE ENTIRE COMMUNITY.
UH, I, I DO NOT DISAGREE WITH MOST OF THE RECOMMENDATIONS MADE IN THE HIGH PROFILE FORECAST.
I THINK IT MAKES SENSE TO MOVE THOSE PROCESSES A LITTLE MORE QUICKLY.
ONE, UH, ONE THING THAT COMES TO MIND THOUGH, AND IT WAS SOMETHING THAT, UH, COUNCILWOMAN CABE, HARVARD, I BROUGHT UP, YOU KNOW, ABOUT RAISING THE, UH, THE, UM, AMOUNT FROM A MILLION TO 5 MILLION FOR A HIGH, UH, HIGHLY IMPORTANT CONTRACT.
AND IT'S SET AT A MILLION, AND THAT IMPACTS OUR ETHICS, UH, ACTIVITY REVOLVING CAMPAIGN INVOLVING CAMPAIGN CONTRIBUTIONS.
AND SO THEORETICALLY, UH, RIGHT, WELL, ACTUALLY, RIGHT NOW, IF SOMEBODY, UH, IS INVOLVED WITH A BUSINESS THAT, UH, IS INVOLVED IN A HIGH PROFILE CONTRACT, THEY HAVE CERTAIN, UH, REQUIREMENTS TO, UH, REPORT THEY'RE ENGAGEMENT WITH COUNCIL MEMBERS OR CONTRIBUTIONS.
IS THAT RIGHT? AND SO IF WE RAISE THAT FROM A MILLION TO 3 MILLION, WOULD THAT MEAN THAT, UH, ANY RELATED BUSINESS, UH, OR ANY RELATED CONTRACT THAT WOULD BE AT A MILLION AND A HALF OR TWO OR TWO AND A HALF WOULD NOT HAVE THOSE REQUIREMENTS ANY LONGER? IS THAT RIGHT? THAT IS CORRECT.
IT'S PER THE DEFINITION, Y'ALL DEFINE THE DEFINITION, BUT ONCE IT'S DEFINED AS A HIGH PROFILE CONTRACT, THEN CERTAIN RESTRICTIONS AND REPORTING REQUIREMENTS.
AND SO IF WE RAISED IT TO 5 MILLION, THEN PEOPLE WHO ARE PROMOTING A, A $4 MILLION CONTRACT FOR THEIR BUSINESS, OR FOUR AND A HALF MILLION, OR THREE AND A HALF MILLION, THEY COULD DO A LOT OF THINGS THAT WE DON'T ACTUALLY ACCOUNT FOR ANYMORE UNDER A CHANGE IN THAT.
THE, THE, THE DISCLOSURE IS STILL THERE AS FAR AS DISCLOSING, UH, CONTRIBUTIONS.
AGAIN, IF IT'S A HIGH PROFILE CONTRACT PER THE DEFINITION, THEY ARE THEN PROHIBITED FROM GIVING, UH, WITHIN THAT BLACKOUT PERIOD.
SO THE, THE PROHIBIT PROHIBITION WOULD GO AWAY.
HOWEVER, THE DISCLOSURE WOULD STILL REMAIN WELL, YEAH.
BECAUSE WE HAVE TO DISCLOSE WHO WE RECEIVE FUNDING FROM, IS THAT RIGHT? UH, AND SO THEREFORE, THE WHOEVER GIVES THE MONEY IS ALSO DISCLOSING THROUGH THAT PROCESS.
SO, BUT THAT'S, THAT'S SOMETHING THAT BOTHERS ME.
AND, UH, I DON'T KNOW IF ERIC CAN GIVE US, UH, AN APPROXIMATE DATE, BUT WHEN WAS IT THAT WE HAD COUNCIL MEMBERS INDICTED AND, UH, PROVEN GUILTY OF, UH, YOU KNOW, CORRUPTION IN, IN THIS CITY? WHEN WAS THAT? TWO, ABOUT 20 YEARS AGO.
THAT, SO IT WAS THAT LONG AGO.
[01:20:01]
HAVE IN THE WAY OF RESTRICTIONS BACK THEN? OH, GOSH, COUNCILMAN, WE'D HAVE TO GO BACK AND LOOK.BUT CERTAINLY MANY OF THE PROCESSES WE HAVE IN PLACE, WE PUT IN, WE PUT IN PLACE, UM, TO ADDRESS, UM, UH, CHALLENGES THAT WE'D ALL EXPERIENCED RIGHT BACK THEN AS AN ORGANIZATION.
AND I, YOU KNOW, I'VE BEEN WATCHING CITY GOVERNMENT AS MANY OF US HAD FOR YEARS AND YEARS.
WE HAVE A $500 CONTRIBUTION FOR INDIVIDUALS AND A THOUSAND FOR THE MAYOR.
UH, AND I THINK THOSE HAVE SERVED US WELL.
AND, UH, I THINK WE'VE HAD ACCOUNTABILITY THAT SERVES US WELL.
I WOULD, I WOULD NOT WANNA SEE US, UH, LOWER THE BAR FOR ACCOUNTABILITY REGARDING, UH, CAMPAIGN CONTRIBUTIONS TO CITY COUNCIL MEMBERS.
AND IT KIND OF GOES ALONG WITH WHAT YOU WERE SAYING, UH, COUNCILMAN BRAVO ABOUT, UH, LET'S CLOSE THE DOOR FOR THAT THREE DAYS RIGHT BEFORE DECISIONS ARE MADE TOO, SO THAT, UH, YEAH, THEY COULD BE QUIET ABOUT THINGS FOR TWO OR THREE WEEKS, BUT THEN SHOW UP AT THE LAST MINUTE WITH A, A SALES PITCH.
AND I DON'T HAVE A PROBLEM CLOSING THAT DOOR EITHER.
BUT, UH, I DON'T WANT TO SEE US, UH, DO SOMETHING THAT WOULD LOWER THE BAR FOR ACCOUNTABILITY, UH, FOR LOBBYISTS FOR BUSINESS, AND, UH, BY CHANGING THAT.
UH, SO I JUST WANTED TO PUT THAT OUT THERE TOO.
COUNCILMAN COURAGE HIT MY POINTS RIGHT ON THE HEAD.
SO I, I REALLY APPRECIATE, UH, RAISING THOSE CONCERNS.
THAT IS ONE HESITANCY I HAVE WITH THE HIGH PROFILE FORECAST AND INCREASING IT TO 5 MILLION IS IT WOULD POTENTIALLY LOWER, UM, THE, IT, IT WOULD POTENTIALLY LOWER, UM, THAT PUBLIC TRUST I KNOW WITH MY CONSTITUENCY, RIGHT? IF IT'S NOT GOING TO HAVE TO BE REPORTED AND INDIVIDUALS WILL STILL HAVE AN OPPORTUNITY TO, UH, HAVE COMMUNICATION AND MAKE DONATIONS, I AM SUPPORTIVE OF EXTENDING THAT BLACKOUT PERIOD, UM, TILL WE VOTE ON THE ITEM.
UM, BUT FOR CLARIFICATION ON THE LOCAL PREFERENCE, I'VE HAD SOME SMALL BUSINESSES AND CONSTITUENTS RAISE SOME CONCERNS REGARDING, UH, THE LOCAL POINTS AND HOW, IF YOU'RE HEADQUARTERED HERE, IT'S 10 POINTS.
AND SOME CONCERNS THAT THEY'VE BROUGHT UP IS THAT YOU CAN OWN A BUILDING, SAY IT'S A HEADQUARTER, AND QUALIFY FOR THOSE POINTS.
CAN YOU TELL ME A LITTLE BIT ABOUT WHAT COMPLIANCE LOOKS LIKE, UH, FOR ENSURING THAT IT IS A LEGITIMATE HEADQUARTERS HERE IN SAN ANTONIO? AS I MENTIONED, IT'S A SELF-CERTIFICATION PROCESS WHERE THEY FILL OUT A FORM WITH ALL THE INFORMATION THAT YOU JUST DISCUSSED.
ONCE WE HAVE A, AN AWARD, MY COMPLIANCE TEAM TAKES THAT AWARD AND THEY VALIDATE THE INFORMATION.
UM, TO THE POINT OF, AND THIS IS AN A RARE INSTANCE, BUT WE'VE ACTUALLY ASKED THEM TO PROVIDE PAYROLLS FOR THE, THE ACTUAL EMPLOYEES THAT ARE WORKING IN RESIDING HERE IN SAN ANTONIO.
BUT THEY WILL VALIDATE THE ADDRESS, THEY'LL VALIDATE TO THE EXTENT THEY CAN VALIDATE TO THE EXTENT THEY CAN, THAT THEY'RE HEADQUARTERED HERE.
THEY WILL TRY AND VALIDATE THE AMOUNT OF PEOPLE MM-HMM.
EVERYTHING THAT'S DISCLOSED IN THAT FORM, ONCE THEY'RE COMFORTABLE WITH IT, WE PLACE IT ON THE AGENDA FOR COUNCIL CONSIDERATION.
AND IS THAT, UH, INITIATED IF THERE'S CONCERN, OR IS THAT, UH, INFORMATION COLLECTED, UH, AND ACCESSIBLE AT ALL TIMES? THE INFORMATION IS, UM, COLLECTED AS PART OF THE HIGH PROFILE PROCUREMENT PROCESS.
SO FOR EVERY SOLICITATION OR EVERY RESPONSE THEY SUBMIT, THEY FILL THAT OUT.
IF THE HIGH PROFILE, I MEAN, IF THE LOCAL PREFERENCES MM-HMM.
UM, AND THEN ON EVERY ITEM THAT'S BEING PRESENTED TO COUNCIL, MY TEAM LOOKS AT ON EVERY, WE DON'T, UM, FOR EVERY INSTANCE.
UH, THAT'S BEEN ONE OF THE PRIMARY CONCERNS WHEN IT COMES TO SMALL CONTRACTORS.
UM, THE MAIN PRIORITY, UM, THAT THEY'VE BEEN RAISING IS ENSURING THAT THE LOCAL CONTRACTS ARE INDEED RIGHT, UM, ALLOCATED AND GIVEN TO LOCAL CONTRACTORS.
BECAUSE THERE HAS BEEN THAT CONCERN, UM, BROUGHT TO ME IN MY OFFICE.
UM, I AM SUPPORTIVE OF, UM, ONE SECOND.
FOR THE MOST PART, UM, I AM SUPPORTIVE OF SAS RECOMMENDATION, WITH THE EXCEPTION ON, UH, INCREASING TO ONE TO 5 MILLION AND NOT HAVING TO REPORT, UH, FOR COMPLIANCE PURPOSES.
AND I WOULD BE SUPPORTIVE OF THE ETHICS REVIEW.
YOU CAN NO, I WAS GONNA SAY THE, THE 1 MILLION, IT WOULD STILL ESTABLISH THE HIGH PROFILE DEFINITION.
EVERYTHING WOULD STAY IN PLACE.
OUR DUE DILIGENCE, EVERYTHING.
THE ONLY THING IT WOULD BE IS A PROCESS STANDPOINT OF, UM, NOT GOING, NOT BEING PRESENTED TO THE ACCOUNTABILITY MM-HMM.
IT'S JUST THE, I WANNA MAKE SURE THAT, THAT EVERYBODY'S, EVERYBODY'S CLEAR IS, THIS HAS BEEN A REALLY GOOD CONVERSATION MM-HMM.
[01:25:01]
UNDO OR USURP OR CHANGE ANY OF WHAT YOU DON'T WANT CHANGED WHAT YOU JUST SAID.ALL IT IS, IS THE PATH IT GETS TO, TO FULL COUNSEL FOR APPROVAL.
BUT ALL THE THINGS THAT KEVIN DOES NOW, HE WILL DO AFTER THIS.
AND I, I, I HEAR THE CONCERNS ON THE CONTRIBUTIONS, BUT I THINK WE SHOULD POTENTIALLY EXPLORE DEMOCRACY DOLLARS WITH THE ETHICS COMMITTEE.
UM, THAT WOULD TAKE AWAY THE PRESSURE OF NEEDING TO ACCOMMODATE, UH, LOBBYIST, UM, IN ORDER TO SECURE DONATION.
JUST A COUPLE OTHER, UM, COMMENTS HERE.
TROY, DID WE GO TO INDUSTRY WITH THESE RECOMMENDATIONS? AND WHAT DID INDUSTRY SAY? WE, FOR THIS PURPOSE? WE DID NOT BECAUSE WE'RE BASICALLY ALIGNING FOR LOCAL PREFERENCE, I'M ASSUMING, OR ARE YOU TALKING ABOUT YEAH, ALL OF THIS FOR LOCAL PREFERENCE.
WE'VE HAD CONTACT THROUGH CONTACT WITH THEM THROUGHOUT THE LAST SEVERAL YEARS.
UM, SO WE, UM, FOR PER, WE DID NOT GO BACK TO 'EM THIS TIME BECAUSE WE'RE JUST ALIGNING TYPICALLY WITH STATE STATUTE.
I DIDN'T FEEL LIKE THERE'S A WHOLE LOT OF DISCUSSION.
THERE'S MORE ALIGNING WITH STATE STATUTE, BUT IN THE PAST, THEY HAVE BEEN SUPPORTIVE OF THIS.
WE'VE TALKED TO THE CHAMBERS AND TALKED TO SOME OF THE SMALL BUSINESS GROUPS.
THEY WERE SUPPORTED WITH ALIGNING OF STATE STATUTE.
WE DID NOT TAKE THE HIGH PROFILE PROCESS AND OUR RECOMMENDED CHANGES OUT ON THE ROAD AND GET FEEDBACK.
WELL, I, I, I THINK WE OUGHT TO, BEFORE THIS COMES TO COUNCIL, JUST TO CIRCLE THE WAGONS AGAIN AND TOUCH BASE WITH THEM ON, ON BOTH OF THESE PRESENTATIONS AND GET THEIR FEEDBACK AND THEIR COMMENTS ON IT.
UM, THE, UM, UH, BLACKOUT PERIOD ABOUT A TOTAL BLACKOUT.
AND HERE'S THE REASON WHY, IS BECAUSE, YES, I'VE HAD, UH, UM, PEOPLE THAT HAVE PROPOSED ON CONTRACTS COME IN AFTER, YOU KNOW, THAT TWO OR THREE DAYS RIGHT BEFORE THE COUNCIL MEETING AND, AND EXPLAIN ABOUT MAYBE SOMETHING THAT THE STAFF MISSED THAT IS, WAS INTERPRETED INCORRECTLY AND GIVE THEM AN OPPORTUNITY TO TALK BEFORE I ACTUALLY VOTE ON IT.
NOW, HAVE I CHANGED MY MIND ON, ON ANYTHING? I DON'T THINK I'VE CHANGED MY MIND.
I'VE NORMALLY GONE WITH A STAFF RECOMMENDATION, BUT IT DOES GIVE ME AN OPPORTUNITY TO HEAR OUT, UM, YOU KNOW, CONTRACTORS OR WHOMEVER ON, HEY, THIS WAS OUR PROPOSAL.
THIS IS WHAT WE, WHAT WE SAID, HERE'S WHAT, WHAT WE MEANT.
TO PUT IT BACK OUT ON THE TABLE TO ME TO MAKE THAT FI BECAUSE WE ARE THE FINAL STOPPING POINT.
WE, WE MAKE THAT FINAL VOTE ON WHETHER, UH, IT'S GONNA BE AWARDED OR NOT AWARDED OR AWARDED TO SOMEBODY ELSE.
SO I, I, I ENJOY THAT LAST STOP BECAUSE I THINK I'M DOING MY JOB IN TAKING A LOOK AT THAT INSTEAD OF JUST GOING A HUNDRED PERCENT ALONG WITH STAFF RECOMMENDATION.
WHY AM I HERE IF THE STAFF IS GONNA MAKE EVERY RECOMMENDATION, AND I FOLLOW THAT RECOMMENDATION EACH TIME, I WANT THAT OPPORTUNITY TO TAKE A LOOK AT THAT AND MAKE, MAKE MY OWN DETERMINATION BASED ON WHAT I HEAR.
SO I, I, I WELCOME THAT OPPORTUNITY TO LISTEN TO THAT AND MAKE THAT FINAL COMMENT.
UH, NOT SAYING I DON'T, DON'T VALUE THE STAFF'S RECOMMENDATION, BUT I, I THINK IT'S IMPORTANT THAT I AT LEAST HAVE THAT OPPORTUNITY TO TAKE A LOOK AT IT BEFORE I VOTE.
SO I THINK THAT'S MY LAST COMMENT NOW.
ONE LAST, IS THAT IT? THANK YOU.
UM, I APOLOGIZE I MISSED, UH, THE EARLIER PART OF, OF THE DISCUSSION, BUT I DO SUPPORT, UM, MOVING THE THRESHOLD FOR, UM, B SESSION OR AUDIT AND ACCOUNTABILITY TO $5 MILLION.
I THINK THERE ARE SO MANY $1 MILLION CONTRACTS, SO I, I COULD UNDERSTAND HOW THE WORK IS GETTING BACKED UP AT COMMITTEE.
SO THANK YOU, UM, CHAIRMAN, UH, PERRY, FOR BRINGING THAT FORWARD AND, AND STAFF, UH, IN REGARDS TO A BLACKOUT PERIOD.
IF, IF THAT IS SOMETHING THAT YOU, THAT IS BEING CONSIDERED FOR CHANGE.
UM, I DO LIKE THE OPPORTUNITY TO SPEAK TO THE, UM, TO THE BIDDERS, UH, BEFORE THE CONTRACT IS AWARDED.
UH, I DON'T NEED TO SPEAK TO THEM UP UNTIL, YOU KNOW, THE MOMENT THAT WE VOTE ON THAT.
SO IF YOU WANTED TO, I KNOW IT SOUNDS CONFUSING, BUT IF YOU DID WANT TO, UH, HAVE A NON-BLACK OUT PERIOD AND THEN, YOU KNOW, A COUPLE DAYS BEFORE THE VOTE IT WAS, IT WAS BLACKED OUT AGAIN, I WOULD BE FINE WITH THAT.
SO I JUST WANTED TO GET MY COMMENT ON THE RECORD.
UM, MY, MY, MY, UH, REQUEST THAT WE CONSIDER MOVING THE THRESHOLD, THE DEFINITION FROM
[01:30:01]
ONE TO 5 MILLION WAS INTENDED TO HELP THE INDUSTRY, WAS INTENDED TO HELP THE UM, UH, ENGINEERS AND CONTRACTORS THAT ARE OUT THERE DOING THIS WORK BECAUSE ALL THEIR COSTS ARE GOING UP.I THINK IT'S STRANGE THAT THE CONVERSATION WENT QUICKLY TO, OR MAYBE NOT SO STRANGE, UM, TO OUR POLITICAL CONTRIBUTIONS.
BUT IF IT, IF IT MAKES, UM, IF WE CAN CONTINUE THE CONVERSATION WITH REMOVING THAT BY, IF IT'S EVEN POSSIBLE TO REMOVE THAT, THAT, THAT, THAT WOULD CHANGE AT ALL.
YOU KNOW, THAT OUR, OUR POLITICAL CONTRIBUTIONS WOULD CHANGE, UM, OR THE BLACKOUT PERIODS OR WHATEVER IT IS.
BUT I THINK WE'RE TALKING ABOUT THE, THE AMOUNT, RIGHT? BECAUSE THE, THE, THE DEFINITION IS WHAT TRIGGERS THE, UM, UH, THE AMOUNT THAT THEY CAN, UM, GIVE US.
SO I'M SAYING IF YOU CAN REMOVE THAT FROM THE CONVERSATION AND IT NOT BE, IT CAN STILL BE TRIGGERED AT 1 MILLION, BUT WE STILL MOVE THE THRESHOLD UP AT FIVE TO, UH, TO HELP, UM, OUR ECONOMY, OUR LOCAL ECONOMY, AND SMALL BUSINESSES.
I, I, I'D LIKE TO CONSIDER THAT AS WELL.
MY INTENTION HAD NOTHING TO DO WITH THE POLITICAL CONTRIBUTION.
UM, ALTHOUGH I DO SEE, UH, I MEAN, I UNDERSTAND THE CONCERN, BUT IF YOU REMOVE THAT ASPECT FROM IT AND ALLOW FOR THE TRIGGERING TO REMAIN AT 1 MILLION, BUT STILL RAISE THE, UM, THE AMOUNT TO 5 MILLION FOR THE THE INDUSTRY, I THINK THAT WOULD BE HELPFUL.
YEAH, I THINK, I THINK YOU HIT THE NAIL ON THE HEAD.
'CAUSE BASED ON OUR PRESENTATION, THAT'S WHAT WE'RE RECOMMENDING.
AND SO IT'S, IT'S, UM, WE'VE SEPARATED THE PROCESS, KEEPING IT AT A MILLION FOR PURPOSES OF THE DEFINITION AND POLITICAL CONTRIBUTIONS, NOTHING WOULD CHANGE AS FAR AS STAFF DUE DILIGENCE.
UM, OUR POLITICAL CONTRIBUTIONS FOR A MILLION OR ABOVE, SIMPLY FROM A PROCESS STANDPOINT, 5 MILLION AND BELOW WOULD NO LONGER GO TO THE AUDIT.
ACCOUNTABILITY WOULD GO DIRECTLY TO CITY COUNCIL.
COUNCIL MEMBER CABELL, HODER, COUNCIL MEMBER COURAGE.
I GUESS I WOULD THINK AFTER BEING ON COUNCIL FOR FIVE AND A HALF YEARS, I'D KNOW THE ANSWER TO THIS, BUT I'M REALLY NOT SURE.
SO I'M GONNA ASK OUR CITY ATTORNEY, UH, IF WE ARE INTO WHAT IS LISTED AS A BLACKOUT PERIOD, DOES THAT MEAN A COUNCIL OFFICE CAN'T CALL A BUSINESS AND ASK THEM A QUESTION? SO IN MOST OF OUR SOLICITATIONS, WE HAVE A POINT OF CONTACT THAT IS THE CITY'S POINT OF CONTACT, UH, CITY STAFF.
AND THEY'RE THE ONES WHO HANDLE THE COMMUNICATIONS BACK AND FORTH, UH, JUST TO MAINTAIN SOME, SOME, UM, ACCOUNTABILITY FOR WHO'S HAVING DISCUSSIONS.
AND I THINK THAT WOULD MAINTAIN THAT WAY.
SO, SO THEN, YEAH, JUST, JUST LET, AND YOU CAN USE THE EXAMPLE IF IT WAS, IF I WANTED TO CALL A CONTRACTOR ABOUT A, AN OPEN SOLICITATION, RIGHT? IT APPLIES TO ME AS WELL AS IT, SO, UM, IT, IT COVERS BOTH WAYS.
SO WE WOULD CONTACT SOMEBODY IN TROY'S DEPARTMENT AND ASK HIM TO, UH, EACH OF THE SOLICITATIONS HAVE A POINT OF CONTACT LISTED IN THE SOLICITATION.
AND I JUST WANNA BE CLEAR THAT, THAT WHEN WE'RE TALKING ABOUT THAT RESTRICTION, IT'S SPECIFIC TO THAT SOLICITATION.
SO YOU CAN TALK TO A BUSINESS ABOUT SOMETHING ELSE.
YOU JUST CAN'T TALK ABOUT THAT SOLICITATION.
MUCH LIKE WHEN WE HAVE CONTRACTS IN PLACE WITH INCUMBENTS, THE STAFF WILL CONTINUE TO WORK WITH THEM.
'CAUSE WE'RE GONNA CONTINUE TO DELIVER SERVICES, BUT THERE'S NO CONTACT THAT CAN OCCUR RELATED TO THE PROCUREMENT ITSELF.
ANY FURTHER DISCUSSION? COUNCIL MEMBER.
SO, UH, YOU KNOW, I, I AGREE WITH COUNCILMAN PERRY'S CONCERN.
WHAT IF STAFF MAKE A RECOMMENDATION ON A HIGH PROFILE CONTRACT AND A CONTRACTOR FEELS THAT, UM, THAT POINTS WEREN'T AWARDED IN A WAY THAT THEY AGREE WITH, OR THAT, UM, YOU KNOW, THERE'S A DISAGREEMENT AS TO WHETHER OR NOT THEY MET A QUALIFICATION OR NOT, AND THEY FEEL LIKE THEY COULD MAKE A BETTER CASE THAT THEY MET THAT QUALIFICATION OR NEW INFORMATION ARISES.
UM, THERE I CAN SEE FORESEE A LOT OF CIRCUMSTANCES WHERE MAYBE THEY FEEL LIKE CITY STAFF DOESN'T SELL WHAT THEY'RE BRINGING TO THE TABLE, AS WELL AS THEY CAN SELL IT.
THE SELL, THAT'S THEIR JOB TO SELL IT, RIGHT? HOWEVER, WHY CAN'T THEY DO THAT RIGHT HERE IN BROAD DAYLIGHT IN FRONT OF ALL OF US? YOU KNOW, WHY DO THEY HAVE TO HAVE PRIVATE MEETINGS WITH COUNCIL MEMBERS WHO THEY HAVE SPECIAL, YOU KNOW, WHO THEY HAVE STRONGER RELATIONSHIPS WITH? UH, AND THAT'S WHY I'M SEEKING TO CLOSE THAT, THAT BLACKOUT LOOPHOLE.
UM, YOU KNOW, WHEN I LOOK AT THIS, YOU KNOW, IF, IF A, A LOBBYIST OR I MEAN, OR A CONTRACTOR, IF THEY ONLY HAVE 72 HOURS TO GET A MEETING WITH A COUNCIL MEMBER, COUNCIL MEMBERS ARE BUSY, RIGHT? AND SO IT'S TOUGH TO GET A, A, A MEETING WITH US WITHIN 72 HOURS.
AND SO THAT'S HOW I'M APPROACHING THIS IS, YOU KNOW, I, I'D LIKE TO SEE IT DONE IN FRONT OF ALL OF US.
GIVE THEM AN OPPORTUNITY TO COME AND MAKE THEIR CASE TO THE FULL COUNCIL.
ANY FURTHER DISCUSSION? ALRIGHT, ERIC, DID YOU GET WHAT, WHAT YOU NEEDED FROM US ON THIS? YES, SIR.
ALRIGHT, UH, TIME IS 3:43 PM ON OCTOBER 18TH, 2022.