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AND, UH, WE'RE NOW READY TO BEGIN.
COULD WE HAVE, UH, ATTENDANCE PLEASE? COUNCIL MEMBER BRAVO HERE.
COUNCIL MEMBER ELIAS IS HERE, VIRTUALLY CITIZEN MEMBER TREVINO IS ALSO HERE.
[Approval of Minutes ]
FIRST ORDER OF BUSINESS' APPROVAL OF THE MINUTES FROM OUR DECEMBER 6TH AUDIT AND ACCOUNTABILITY COMMITTEE MEETING.DID ANYBODY HAVE ANY QUESTIONS OR CONCERNS OTHERWISE AT ENTERTAIN? A MOTION TO APPROVE THE MINUTES.
WE'VE GOT A MOTION AND A SECOND TO APPROVE THE MINUTES FROM DECEMBER 6TH.
NO QUESTIONS OR CONCERNS? ALL IN FAVOR SAY AYE.
DO WE HAVE ANYONE SIGNED UP FOR PUBLIC COMMENT TODAY? NO, SIR.
[CONSENT AGENDA ]
HAVE SEVERAL, UH, IMPORTANT ITEMS TO DEAL WITH TODAY.ABOUT 10 OF THEM, AND SEVERAL OF THEM ARE, UM, ON CONSENT AGENDA.
AND SO THOSE THREE ITEMS ON THE CONSENT AGENDA RIGHT NOW ARE INTERNAL AUDIT REPORTS, ACCEPTANCE OF THE OFFICE, UH, ON HEALTH BENEFITS, THIRD PARTY ADMINISTRATION, S BETA COMPLIANCE, ORACLE SECURITY COMPLIANCE, ALL THREE OF THOSE, UH, WE'VE RECEIVED THEM, WE'VE REVIEWED THEM, THEY'RE ON CONSENT.
UH, DOES ANYBODY WISH TO WITHDRAW EITHER OF ITEMS TWO, THREE, OR FOUR FROM THE CONSENT AGENDA FOR INDIVIDUAL CONSIDERATION? OKAY.
HEARING NONE, WE HAVE, UH, FIVE OTHER ITEMS, SIX OTHER ITEMS THAT WE WILL BE HEARING FOR INDIVIDUAL CONSIDERATION.
SO I, I WOULD ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA.
MOTION BEEN MADE AND SECONDED TO APPROVE THE CONSENT AGENDAS, ITEMS TWO, THREE, AND FOUR.
AGAIN, ANY OTHER QUESTIONS OR CONCERNS? OKAY.
HEARING NONE, WE'LL TAKE A VOICE VOTE.
OKAY, SO THE, UH, ITEMS FOR CONSENT HAVE BEEN APPROVED.
[Pre-Solicitation High Profile Briefings ]
OUR AGENDA, ITEM NUMBER ITEMS NUMBER FIVE AND SIX ARE PRES SOLICITATION, HIGH PROFILE BRIEFINGS.UH, SO ITEM NUMBER FIVE WILL BE THE FIRST ONE.
AND, UH, CRAIG, WILL YOU BE BRIEFING US ON THAT? I WILL, SIR.
UH, I FIRST LIKE TO START OFF, MA, MAKING SURE YOU UNDERSTAND THAT WHAT I'M ABOUT TO PRESENT TO YOU IS NOT JUST AN IT PROJECT.
UH, WHEN WE TALK ABOUT E R P AND OUR SS A P SYSTEM, WE TALK A LOT ABOUT THE INFRASTRUCTURE AND THE DATA THAT GOES THROUGH THERE.
I HAVE A FEW FRIENDS WITH ME HERE IN THE AUDIENCE.
SO, UH, JUSTINA TATE FROM O M B, TROY, UH, FROM FINANCE AND RENEE WHO'S NOT HERE WITH US, UH, FROM HR.
THE FOUR OF US TOGETHER ARE PARTNERS IN THIS, UH, E R P UPGRADE.
AS WE GO FORWARD, YOU'RE GONNA HEAR A LOT ABOUT BUSINESS CAPABILITIES, BUT YOU'RE ALSO HERE PRIMARILY TO TALK ABOUT CONTRACTS THAT WE'RE GETTING READY TO, UM, UM, PUT OUT OVER THE NEXT SEVERAL MONTHS.
SO, UM, I'M PRIMARILY RESPONSIBLE HERE TODAY TO TALK ABOUT THE, UH, I V AND V CONTRACT, THAT INDEPENDENT VERIFICATION AND VALIDATION SERVICES THAT WE'RE READY TO PUT OUT AS AN OVERALL, UH, OVERSIGHT OF THE E R P PROGRAM THAT WE'RE TAKING ON OVER THE NEXT THREE YEARS.
BUT I ALSO WANT TO TAKE THIS OPPORTUNITY TO GIVE YOU AN UPDATE ON THE PROGRAM ITSELF AND A LITTLE BIT ABOUT WHY WE ARE UPGRADING OUR CURRENT SS A P SYSTEM TO GO FORWARD.
SO I'M GONNA TAKE YOU THROUGH THIS, UM, UH, FIRST COUPLE SLIDES.
WHAT IS OUR SITUATION AND OUR SCOPE OF THE PROGRAM THAT WE'RE WORKING ON? WHAT IS OUR PLATFORM APPROACH? WE'RE UPGRADING OUR PLATFORM INTO NEW TECHNOLOGIES, NEW BUSINESS CAPABILITIES, AND NEW FUNCTIONS.
THERE'S A OVERALL PROCUREMENT TIMELINE THAT INCLUDES FIVE DIFFERENT PROCUREMENT FUNCTIONS THAT WE'LL BE DOING OVER THE NEXT, UH, FOR INTEGRATION OVER THE NEXT 18 MONTHS OR SO.
AND THEN I'LL TAKE YOU THROUGH THE PRES SOLICITATION FOR IV AND V AND A QUICK SUMMARY OF THE OTHER FOUR SO YOU HAVE AN UNDERSTANDING OF THE OVERALL PROGRAM.
ALRIGHT, SO FIRST SITUATION AND SCOPE.
UH, IT'S IMPORTANT TO UNDERSTAND WHY WE'RE DOING ALL THIS.
WE NEED TO UPGRADE OUR CURRENT E R P PLATFORM TO A MODERN INTEGRATED E R P SOLUTION.
UH, OUR CURRENT S A P TOOLS WERE IMPLEMENTED, I WOULD SAY ALMOST 20 YEARS AGO, RIGHT? THEY HAVE BEEN CONSTANTLY MODIFIED AND UPGRADED AS WE'VE GONE, BUT THE BASE E R P SYSTEM IS STILL THE ORIGINAL ONE THAT WAS IMPLEMENTED EARLY ON IN HR, FINANCE, PROCUREMENT, AND IN,
[00:05:01]
UM, IN BUDGET, UH, WITH DIFFERENT LEVELS OF IMPLEMENTATION.OUR GOAL HERE IS TO BRING ALL OF THOSE BUSINESS CAPABILITIES UP INTO THE LATEST OPERATIONAL, UM, FUNCTIONS, UH, CAPABILITIES, AND TO RE-ENGINEER OUR BUSINESS PROCESSES AS WE GO FORWARD.
A FULLY INTEGRATED E R P SYSTEM ACROSS ALL THOSE FUNCTIONS PROVIDES VALUE BOTH TO THE COSA EMPLOYEES AND TO OUR RESIDENTS.
I'LL TALK MORE ABOUT THAT GOING FORWARD.
SO SOME HAVE SAID, WHY CAN'T WE JUST STAY ON WHAT WE HAVE? I WILL TELL YOU WE CAN'T, RIGHT? WE ARE MOVING FORWARD OFF OF OUR BASE PLATFORM, IT'S END OF LIFE.
THERE'S A LOT OF MANUAL PROCESSES.
UM, THERE'S A LOT OF, UH, COMPLEXITY IN OUR DATA MODEL.
WE NEED TO BRING THAT TOGETHER.
THOSE WHO HAVE USED S A P OVER THE YEARS, WE'LL TELL YOU IT'S CLUNKY.
UH, IT'S DOESN'T HAVE A GREAT USER INTERFACE.
UH, AND IT'S AN IN TOTALLY ON-PREMISE IN-HOUSE MODEL THAT WE HAD TODAY.
AND THERE'S THE OPPORTUNITY FOR US TO SCALE THAT ACROSS THE CLOUD IN HYBRID, UM, TECHNOLOGIES AS WE GO FORWARD.
THE SCOPE ITSELF ON THE RIGHT IS WE'RE ACTUALLY SIX DIFFERENT WORK STREAMS AND WE TALK ABOUT THESE IN WORK STREAMS, NOT IN DEPARTMENTS.
I WANT TO BE CLEAR ABOUT THAT AS I TALK TO YOU.
WE'LL ALWAYS COME BACK AND TALK ABOUT THESE WORK STREAMS. BUDGET TO REPORTING IS A WORK STREAM THAT BOTH O M B AND FINANCE SHARE TOGETHER.
HIRE TO RETIRE AS AN HR WORK STREAM, SOURCE TO PAY FINANCE AND PROCUREMENT, ORDER TO CASH FINANCE ACQUIRE TO RETAIN FINANCE.
AND UNDERNEATH THIS IS A MANAGE IT COMPONENT WHERE WE UNDERSTAND THE DATA MODELS, THE DATABASES, THE STRUCTURE THAT SUPPORT ALL OF THESE.
SO INSTEAD OF TALKING ABOUT IMPLEMENTING FOR HR OR IMPLEMENTING FOR FINANCE, WE ARE IMPLEMENTING FOR THESE WORK STREAMS AS WE GO FORWARD.
THAT'S HOW WE'RE ORGANIZING OUR WORK.
ALRIGHT? SO WE HAVE AGREED TO UPGRADE OUR CURRENT PLATFORM.
AND THIS IS IMPORTANT GOING FORWARD BECAUSE, UM, WE ARE, WE ARE HEAVILY INVESTED IN S A P, BOTH IN INFRASTRUCTURE AND BUSINESS PROCESSES.
AND OUR RESOURCES IN THE CITY HEAVILY TRAINED KNOW THIS, UM, PRODUCT VERY WELL.
SO WE CONNECTED 18 MONTHS OF PLANNING AND 14 DETAILED DISCOVERY CAPABILITY SESSIONS WITH FINANCE, PROCUREMENT, HR, O M B AND I T S D.
THIS IS BASICALLY PRE-WORK THAT WE DID WHERE WE IDENTIFIED A HUNDRED, 278 PAIN POINTS, 311 CAPABILITIES IMPROVEMENTS, AND 187 VALUE DRIVERS.
NOW, A VALUE DRIVER IS WHAT DO WE WANT THIS TO DO BETTER? IF YOU WANT TO THINK OF IT THAT WAY.
UNDERSTAND WHAT A PAIN POINT, A CAPABILITY CHANGE.
BUT VALUE DRIVERS REALLY SAY, HOW DO WE WANT THIS TO OPERATE THE BUSINESS PROCESS TO OPERATE DIFFERENTLY? THERE'S A LOT OF INVESTMENT FROM CITY EMPLOYEES OVER THE LAST 18 MONTHS WORKING WITH OUR, UH, VENDORS IN OUR IT SHOP TO UNDERSTAND WHAT THIS SHOULD LOOK LIKE GOING FORWARD.
WE MADE THE DECISION TO UPGRADE THE, TO A CURRENT S A P SUITE AND PLATFORM WITH THE LATEST BUSINESS MODULES AND CAPABILITIES ACROSS THOSE SAME DEPARTMENTS AND ACROSS THOSE WORK STREAMS AS WE WENT FORWARD.
NOW, IN THERE THOUGH, WE CAME UP WITH FOUR PRINCIPLES THAT REALLY WERE DRIVING TO IN THIS PLATFORM, PUT THE RESIDENT AT THE CENTER, LEVERAGE DATA AS AN ASSET, REIMAGINE OUR BUSINESS PROCESSES AND BUSINESS MODELS, AND BUILD A WORK, UM, BUILD FOR THE WORKFORCE OF TODAY AND FOR THE FUTURE.
SO WE HAVE A STRONG WORKFORCE TODAY WHO'S LOOKING FOR THESE IMPROVEMENTS AND THE CURRENT SUITE.
AND THEN WE KNOW THOSE WHO ARE IN THE YOUNGER GENERATIONS COMING AND ARE USING OUR TOOLS VERY DIFFERENTLY THAN THE WAY WE BUILT THEM 20 YEARS AGO.
SO THAT'S A BIG PART OF OUR UPGRADE PLAN GOING FORWARD.
AND FINALLY, THE UPGRADE DECISION GIVES US THE GREATEST OPPORTUNITY TO RE-ENGINEER OPERATIONAL BUSINESS PROCESS AND CREATE THE NEXT GENERATION OF A FULLY INTEGRATED E R P SYSTEM.
WE'RE NOT LOOKING AT JUST AN HR SYSTEM OR JUST A PROCUREMENT SYSTEM OR JUST A FINANCE SYSTEM.
WE'RE LOOKING AT A FULLY INTEGRATED E R P SYSTEM GOING FORWARD.
THIS DRIVES ADDITIONAL VALUE TO THE COAST EMPLOYEES AND OUR RESIDENTS.
IT ALSO GIVES US THE LOWEST IMPLEMENTATION AND OPERATIONAL COSTS WE CAN SEE AS OPPOSED TO GOING OUT AND TAKING IT ALL OUT AND PUTTING A WHOLE NEW ONE IN PLACE IN MULTIPLE COMPONENTS.
IT GIVES US SHORTER TIME TO VALUE.
WE THINK WE CAN DO THIS IN THREE YEARS, WHERE MANY OF THOSE WHO ARE DOING A CALL, QUOTE, RIP AND LEAVE PLACE, TAKE UP TO FIVE YEARS TO GO THROUGH THIS PROCESS.
AND WE'RE TRYING TO MINI MINIMIZE THE RISK TO OUR EMPLOYEES AND OUR CURRENT BUSINESS OPERATIONS.
YOU HEAR, ALWAYS HEAR THE CONCEPT, YOU HAVE TO CHANGE THE TIRES ON THE BUS WHILE THE BUS IS GOING DOWN THE STREET.
WE STILL HAVE TO RUN OUR OPERATIONS FOR THIS THREE YEARS WHILE WE ARE UPGRADING AND REPLACING AS WE GO FORWARD.
SO THAT'S KIND OF OUR SETUP FOR WHY WE ARE ST STAYING ON THE UPGRADE PATH.
THIS IS A VIEW OF THE MULTIPLE, UM, PROCUREMENTS THAT WE'RE PLANNING TODAY.
THE, UH, TOP, UH, ARROW IS THE INDEPENDENT VERIFICATION AND VALIDATION THAT I'M BRIEFING YOU ON THAT IS GETTING READY TO GO OUT, BUT I WANTED TO SEE THE REST OF THEM THAT ARE PLANNED TO GO OUT AS WELL.
THE, UM, THE BIG ARROW THERE ON THE LEFT IS OUR SOFTWARE, UH, CONTRACT, UM, DEVELOPMENT,
[00:10:01]
WHICH IS WHERE WE TALK ABOUT LICENSES AND SOFTWARE MAINTENANCE, SPECIFICALLY WITH OUR SS A P VENDOR.BUT THEN WE HAVE FOUR, UH, INTEGRATORS THAT WE'RE LOOKING AT RIGHT NOW.
SUCCESS FACTORS, WHICH IS THE HR COMPONENTS, BUDGET DEVELOPMENT, O M B AND FINANCE, ARIBA, WHICH IS THE PROCUREMENT COMPONENTS.
AND THEN THE CORE SS FOUR HANA, WHICH IS THE, UH, BASE INFRASTRUCTURE OF SS A P.
GOING FORWARD, WE ARE, WE, OUR CURRENT PROPOSAL IS TO LOOK AT THOSE FOUR INTEGRATORS INDEPENDENTLY, BUT AS WE PUT THAT INFORMATION ON THE STREET AND IT COMES BACK, WE MAY REALIZE IT'S BETTER TO HAVE TWO INTEGRATORS INSTEAD OF FOUR OR MAYBE EVEN A ONE PRIME WITH, WITH ULTIMATE MULTIPLE SUBS.
WE HAVEN'T GOT TO THAT PART YET.
WE EXPECT TO PUT THE S SUCCESS FACTORS ON THE STREET IN JULY.
UM, THE BUDGET DEVELOPMENT IN NOVEMBER AND THEN ARIBA AND THE S FOUR IN THE BOTTOM IN FEBRUARY, AS WE GO BACK ABOUT A YEAR FROM NOW, THAT HELPS US BUILD OUR, UH, PROGRAM PLAN AS WE GO FORWARD.
YOU CAN SEE IN THE UPPER RIGHT A SUMMARY OF THE ESTIMATED CONTRACT VALUE FOR EACH OF THOSE, WHICH IS ABOUT $18.2 MILLION.
WE BUDGET ABOUT $20 MILLION FOR OUR INTEGRATORS AND THE TOTAL COST OF THIS PROGRAM ON THE BOTTOM RIGHT IS ABOUT 20 MILLION FOR SOFTWARE, 20 MILLION FOR INTEGRATORS, AND ABOUT $15 MILLION CONTRACTORS AND STAFF TO SUPPORT.
ALRIGHT, JUST TO DIVE INTO A COUPLE OF THESE NOW.
SO THIS IS THE INDEPENDENT VERIFICATION VALIDATION PARTNER THAT WE'RE READY TO PUT OUT.
UM, IT IS AN R F P ESTIMATED ABOUT $1.5 MILLION.
YOU CAN SEE THE EVALUATION COMMITTEE, UH, THERE, AND YOU'RE GONNA SEE BASICALLY THE SAME NAMES ON ALL THESE I'VE GO THROUGH EXCEPT FOR OUR FRIEND MICHAEL SHANNON.
WE HAVE ASKED HIM TO JOIN US IN THE EVALUATION COMMITTEE.
UH, HE HAS EXPERIENCE WITH THE IT TEAM DOING INDEPENDENT VERIFICATION VALIDATION ON THE ELLA PROJECT WE DID, UH, IN D S D A FEW YEARS AGO.
SO WE WANTED TO BRING HIS EXPERTISE IN HERE TO HELP US WITH THIS ON THE SS A P PROJECT AS WELL, UH, S BETA PROGRAM FOR THE I B N V, YOU CAN SEE THE GOAL SETTING COMMITTEE MEMBERS THERE ON THE LEFT.
UH, FIVE POINTS FOR S B E, FIVE POINTS FOR M W B E AND, UH, MENTORSHIP PROGRAM REQUIREMENT.
AND THEN QUICKLY, I WANT TO TAKE YOU THROUGH THE OTHER FOUR SO YOU CAN SEE THE, THE, WE'RE USING BASICALLY THE SAME TEMPLATE, BUT I WANT YOU TO SEE THAT THESE WILL ACTUALLY COME TO, UM, UH, LIKE I SAID, WE'LL BE GOING OUT IN THE FOLLOWING MONTHS.
THE SUCCESS FACTORS INTEGRATION, WHICH IS FOCUSED ON THE HR, UH, WORK STREAMS, SAME EVALUATION COMMITTEE.
THIS IS AN R F C S P, ESTIMATED ABOUT THREE AND A HALF MILLION DOLLARS.
YOU CAN SEE THE EVALUATION COMMITTEE ON THE RIGHT, UH, CRITERIA.
THE BUDGET DEVELOPMENT INTEGRATOR, THESE WILL ALL BE, UH, INTEGRATORS THAT'LL COME IN SPECIFICALLY FOR THESE WORK STREAMS. UH, ALSO AN R F C S P FOR ABOUT THREE AND A HALF MILLION DOLLARS.
THE ARIBA INTEGRATOR, WHICH IS FOCUSED MOSTLY ON FINANCE AND PROCUREMENT.
AN R F C S P AT ABOUT $3.7 MILLION.
AND THE CORE S FOUR HANA INTEGRATOR.
AGAIN, THIS IS THE BASE INFRASTRUCTURE, THE CORE COMPONENTS, UH, THAT SUPPORT THE OTHER PIECES THAT WE TALKED.
UH, THIS IS ABOUT $6 MILLION LARGER CONTRACT VALUE VALUE R F C S P.
ALRIGHT, SO QUICK SUMMARY OF OUR MILESTONES.
UM, WHERE WE ARE NOW IS IN, UH, THIS JANUARY FEBRUARY TIMEFRAME.
WE'RE READY TO RELEASE THE I V V SOLICITATION AND WE'RE PREPARING THE SUCCESS FACTORS, R F C SS P, WHICH I SAID WILL BE COMING UP NEXT IN JULY.
AND A BIG PART OUTSIDE OF THE CONTRACTUAL CONVERSATION HERE IS ABOUT OUR RESOURCE PLAN.
UH, WORKING THROUGH OUR DEPARTMENT, OUR CSA RESOURCES, OUR THIRD PARTY RESOURCES, OUR CONTRACTOR RESOURCES.
WE'RE GOING TO NEED BOTH TO RUN THE PROJECT AND MAINTAIN OPERATIONS WHILE WE GO THROUGH THIS THREE YEAR JOURNEY.
UM, WE EXPECT TO DO EVALUATION ON I V V AND SELECTION IN MAY OR JUNE.
AND ALSO AT THE SAME TIME, WE'LL BE WORKING THROUGH OUR CLOUD AGREEMENTS WITH SS A P, WHICH IS OUR SOFTWARE LICENSING.
AND THEN, UH, JULY AND AUGUST, WE'LL GET READY TO PREPARE, UH, THE ARIBA AND THE SUCCESS FACTORS TO PUT THOSE ON THE STREET AND THEN FINALIZE OUR RESOURCE PLANS.
BUT WITH THAT, THAT IS MY OVERVIEW AND HAPPY TO TAKE ANY QUESTIONS.
ONE QUESTION THAT COMES TO MY MIND IS WHY ISN'T THIS JUST A SOLE SOURCE? UH, YOU KNOW, UH, R F P, SO THE, THE SS A P, UM, UH, INFRASTRUCTURE, THE CORE COMPONENTS OF LICENSING ARE BUILT INTO ALL OF OUR DEPARTMENTS.
THEY'RE HEAVILY, HEAVILY BUILT INTO OUR DEPARTMENTS, RIGHT? OUR RESOURCES HAVE BEEN TRAINED ON THAT.
UH, THERE'S LIMITED INTEGRATION IN WHAT WE DO TODAY BASED ON THE CURRENT SCENARIO.
UH, BUT IT IS, UM, IT IS CORE.
IT IS A, UM, UM, BUILT IN THERE.
WE LOOK THROUGH A, I'M GONNA CALL IT A RIP
[00:15:01]
AND REPLACE MY APOLOGY FOR THE SUMMARY, BUT THE IDEA TO SAY, DO WE TAKE ALL THOSE THINGS OUT AND THEN PUT MULTIPLE THINGS BACK IN THEIR PLACE, UH, VERY HIGH RISK, UH, IN THE SENSE THAT ALL OF OUR RESOURCES WOULD HAVE TO BE RETRAINED ON NEW PRODUCTS AND SOLUTIONS.UM, MUCH LARGER TIMELINE OVER FIVE YEARS INSTEAD OF THREE, UH, MUCH HIGHER PRICE.
UH, WE DON'T HAVE AN ACTUAL ESTIMATE TO DO THAT 'CAUSE WE HAVEN'T PUT THAT OUT, BUT OUR $50 MILLION, $55 MILLION PROJECT COULD BE IN EXCESS OF A HUNDRED MILLION DOLLARS AS WE WENT THROUGH THERE.
SO THOSE WERE SOME OF THE SUMMARY REASONS WE SAID, SHOULD WE STAY? BUT I THINK AT ITS CORE, WHAT WE'VE COME BACK TO AS FROM A BUSINESS CAPABILITY STANDPOINT, THE RISK OF, UM, TAKING OUT WHAT WE HAVE AND PUTTING IN NEW AND RUNNING OUR OPERATIONS FOR THREE YEARS WOULD BE SO GREAT THAT IT WOULDN'T BE WORTH THE ULTIMATE VALUE OF HAVING A NEW SET OF PRODUCTS IN THERE.
AND WE WOULD HAVE TO PAY EXTRA TO INTEGRATE THOSE PRODUCTS TOGETHER.
I HOPE THAT ANSWERED YOUR QUESTION CHAIR.
SO YOU, I THINK YOU ASKED WHY IT ISN'T A SOLE SOURCE PICTURE OF IT, RIGHT? WHY, WHY AREN'T WE JUST GOING DIRECTLY TO S I MEAN, S A P COULD PROBABLY DO ALL OF THESE THINGS, RIGHT? AND I, I THINK THE, THE ANSWER TO THAT IS THAT, YOU KNOW, UNLIKE, UM, UPDATES THAT WE HAVE DONE PERIODICALLY WITH SS A P, AND CRAIG CAN JUMP IN HERE AS WELL.
THIS IS A, IT IS A CHANGE TO SAP'S NEW PLATFORM.
SO IT IS GONNA BE AN OPPORTUNITY FOR US TO CHANGE OUR BUSINESS PROCESSES.
IT IS A DIFFERENT E R P PLATFORM.
SO WE'RE GONNA HAVE TO BUILD INTEGRATION, MORE INTEGRATION, UM, GOING FORWARD THAN WE'VE HAD IN THE PAST.
I DUNNO, CRAIG, IF YOU WANT TO CHIME IN ON THAT, BUT IT'S MORE ABOUT WHY WE DIDN'T, WHY WE JUST CAN'T CONTRACT DIRECTLY WITH SS A P.
WELL, LET ME CLARIFY MY THOUGHT ON THIS.
ARE WE SAYING THAT THE COMPONENTS THAT WE'RE GONNA ADD TO THE STANDARD SS A P PLATFORM, UH, HAVE A VARIETY OF VENDORS THAT OFFER DIFFERENT COSTS FOR THOSE KINDS OF PLATFORMS TO BE INTEGRATED? AND THAT'S WHY WE'RE LOOKING AT WHO WANTS TO BID ON THOSE AND WHAT THE COST WOULD BE TO US.
SO THE, UM, THE SSS A P PLATFORM IS OWNED BY SS A P, RIGHT? ARIBA, SUCCESSFACTORS, S FOUR, THEY'RE ALL PART OF SS A P.
SO AS THEIR LICENSES HAVE COME TO AN END OF LIFE, THEY ARE OFFERING US A NEW LICENSE OF THE NEW VERSION OF THOSE THINGS.
IN THE PAST, YOU WOULD'VE GONE OUT TO ANOTHER VENDOR AND MAYBE BOUGHT SOME OTHER COMPONENTS.
THESE ARE ALL WITHIN THEIR SUITE.
SO AS PART OF OUR LICENSING AGREEMENT, WE ARE BASICALLY UPGRADING FROM OLD COMPONENTS TO NEW COMPONENTS AS WE GO FORWARD.
THE RFCS PSS WE'RE DOING ARE FOR INTEGRATORS TO COME IN AND ACTUALLY HELP US DESIGN, BUILD, AND IMPLEMENT THAT.
THE SOFTWARE LICENSES THAT WILL NOT SS A P COULD BID ON THAT THEMSELF IF THEY WANT TO, BUT WE'RE PUTTING THAT OUT FOR BID FOR ANYBODY TO COME IN AND HELP US DESIGN, BUILD, AND IMPLEMENT.
THE UPGRADE IS JUST OLD LICENSES TO NEW LICENSES.
AND I THINK WHAT YOU WERE SAYING IS, IF WE JUST SAID TO SS A P, WE WANT YOU TO REDO THE WHOLE THING, IT WOULD PROBABLY BE MORE EXPENSIVE THAN GETTING BIDS FOR LOWER WAYS OF INTEGRATING.
I, I, I, WE DON'T KNOW THAT FOR A FACT, BUT WE FEEL WE GET A BETTER PRODUCT BY BRINGING IN, UH, BY COMPETING THE INTEGRATORS THAN JUST SAYING, SS A P WILL BUY YOUR LICENSES AND PAY YOU TO DO ALL THE WORK.
WE THINK WE CAN GET A BETTER PRODUCT.
AND THE I V V HELPS US WITH THAT BECAUSE THE THIRD PARTY INTEGRATOR, IF YOU WANT TO THINK, THAT CHECKS BOTH US AND SS A P AND SAYS, ARE WE DOING IT THE RIGHT WAY? SO WE FEEL WE GET A BETTER PRODUCT BY BRINGING IN THIRD PARTY INTEGRATORS, BUT STICKING WITH OUR S A P LICENSES.
ANY OTHER QUESTIONS FROM ANY OF THE OTHER COMMITTEE MEMBERS? ANYBODY ONLINE? NO.
SO, CRAIG, I PARTICIPATED ON A TEAM THAT DID THIS MANY YEARS AGO, AND WE WENT THROUGH THE, WHAT YOU CALLED IT, THE RIP AND REPLACE OR REPAIR AND REPLACE, UM, DEBATE.
AND, YOU KNOW, THERE WAS, THERE WAS A, A DIFFERENT ARGUMENT FOR THAT, RIGHT? WHICH IS, YOU KNOW, YOU CAN, YOU CAN REPAIR, BUT YOU'RE STILL WORKING ON THESE OLD LEGACY SYSTEMS AND YOU'RE STILL, YOU KNOW, WORKING WITH THESE, WITH THESE OLDER PROGRAMS. AND THE ADVANTAGE IS YOU DON'T HAVE TO TRAIN UP STAFF AND, AND, UH, USERS TO LEARN NEW TRICKS.
THE DISADVANTAGES IS THAT THEY'RE EVENTUALLY GONNA HAVE TO LEARN NEW TRICKS ANYWAY.
AND THEN WE'RE KIND OF KICKING THEIR, KICKING THE CAN DOWN THE ROAD HERE.
UM, AND SO I'M, I I, I UNDERSTAND IT.
I'M GONNA VOTE, YOU KNOW, IN FAVOR OF WHAT YOU'RE PROPOSING, BUT, BUT AT WHAT POINT DO YOU RIP? I'M SORRY? AT WHAT POINT DO YOU REPLACE AS OPPOSED TO REPAIR COUNCILMAN? I THINK I GOT MOST OF THAT, BUT, UM,
[00:20:01]
GONNA USE THE WORD FILLED IN, RIGHT? MAYBE SS A P DOESN'T DO IT THE WAY WE WANT IT TO DO IT, OR THERE'S A BETTER PRODUCT TO FILL IN GAPS AS WE GO FORWARD.UH, I WILL TELL YOU ON THE, UM, AND, AND JUSTINA'S AREA FOR BUDGETING FOR O M B, WE'VE SEEN THE TOOL SET IN THE SUITE AND WE THINK WEVE MAY NEED TO DO SOMETHING ON TOP OF THAT AS WE GO FORWARD.
BUT AT ITS CORE, UM, MOST EMPLOYEES WILL TELL YOU THAT IT'S CLUNKY TO USE IN ITS OLD FORM.
WE WANT THEM TO BE ABLE TO SAY IT'S EASY TO USE IN ITS NEW FORM.
AND WE HAVEN'T CHANGED THE UNDERLYING, UM, DATA STRUCTURE, ALTHOUGH WE'RE GONNA DO SOME TECHNOLOGY CHANGES IN THAT GOING TO RELEARN HOW THEY DO THE WORK.
THEY'RE GOING TO HAVE TO RELEARN A NEW PROCESS THAT WE HAVE CHOSEN THAT WE WANT TO FOLLOW.
THEY'RE GONNA GET A BETTER USER INTERFACE, BETTER USER INTERFACE TO DO IT RIGHT.
AND THEN THE, THE OTHER QUESTION I HAD WAS, UM, MAN, FORGET IT.
I, I, I HAD A BRILLIANT QUESTION.
IT WAS SO BRILLIANT, BUT MY BRAIN COULDN'T HANDLE IT.
SO ANYWAY, YOU GOT MY SUPPORT, BUT CHAIRMAN, I MOVED TO APPROVE.
WELL, I WOULD'VE LOVED THE QUESTION 'CAUSE I HAD A BRILLIANT ANSWER AS WELL.
BUT, UM,
WE DON'T, THIS IS JUST A BRIEFING ITEM ONLY.
YEAH, THIS IS, WE DON'T NEED TO MOVE IT FORWARD TO COUNCIL ACTION.
ANY OTHER QUESTIONS OR CONCERNS BY OTHER COMMITTEE MEMBERS? OKAY, HEARING NONE, THAT'S THE END OF THE BRIEFING.
I'M SURE WE'LL ASK YOU MORE QUESTIONS LATER.
THE NEXT ITEM WE HAVE ITEM NUMBER SIX.
UH, WE'LL BE HEARING ABOUT ANOTHER BRIEFING, UH, WITH THE TRANSPORTATION DEPARTMENT WITH ON-CALL PROFESSIONAL CONSULTING SERVICES.
GOOD MORNING, COUNCILMAN, COURAGE.
GOOD MORNING, MEMBERS OF THE COMMITTEE, TAMIKA MONVILLE, DIRECTOR OF THE TRANSPORTATION DEPARTMENT.
WE ARE HERE TODAY TO HAVE OUR PRES SOLICITATION BRIEFING FOR ON-CALL PROFESSIONAL SERVICES FOR CONSULT SUPPORT FOR DESIGN AND ENGINEERING AND PLANNING SERVICES FOR THE DEPARTMENT.
THIS SOLICITATION IS A REQUEST FOR QUALIFICATIONS WITH AN ESTIMATED VALUE OF $15 MILLION, APPROXIMATELY 3 MILLION ANNUALLY.
THE PROPOSED TERM IS THREE YEARS WITH TWO ONE YEAR RENEWALS OPTIONS FOR TWO ONE YEAR RENEWALS.
AND THIS WILL BE A NEW CONTRACT.
THIS WILL ACTUALLY BE THE FIRST CONTRACT FOR SERVICES TO SUPPORT THE DEPARTMENT.
CURRENTLY, THE PAST TWO YEARS WE'VE BEEN USING GRACIOUSLY.
THANK YOU SO MUCH, RO AND TEAM.
UM, A LOT OF THE CAPACITY THAT WE'VE BEEN USING COMES FROM THE SUPPORT FROM THE CURRENT ON-CALL CONTRACT THAT THE PUBLIC WORKS DEPARTMENT HAS.
SO THIS IS A STEP IN THE RIGHT DIRECTION FOR US, HAVING THE SUPPORT OF CONSULTANTS, PLANNERS, ENGINEERS, UM, ALL THE BEVY OF SERVICES THAT WE WILL NEED TO BRING FORTH THE PROGRAMS THAT WE, WE COVER IN THE TRANSPORTATION DEPARTMENT, WHICH INCLUDE VISION ZERO, QUIET ZONE MAINTENANCE, AND ALSO CORRIDOR STUDIES AND OUR BIKE NETWORK PLAN AND THINGS SUCH AS THAT.
SO OUR OUTREACH WAS TO OVER 4,000 TARGETED VENDORS.
YOU CAN SEE OUR EVALUATION VOTING MEMBERS, WHICH INCLUDE OUR ASSISTANT CITY MANAGER, ROD SANCHEZ, MYSELF, CATHERINE HERNANDEZ, INTERIM ASSISTANT DIRECTOR JOE CONGER, OUR PUBLIC RELATIONS MANAGER, VANESSA GARZA, OUR PROJECT IMPLEMENTATION MANAGER, AND HOMER GARCIA, OUR DIRECTOR OF PARKS AND RECREATION.
WE ALSO ADVERTISE THIS, UH, R F Q IN A NUMBER OF PUBLICATIONS, MIXED MEDIA, AND ALSO ADVERTISE ON, UM, THE CURRENT BIDDING OPPORTUNITIES WEBSITE.
WE HAVE A NUMBER OF N I G P CODES THAT WERE IDENTIFIED, APPROXIMATELY 24, WHICH INCLUDE THE BEVY OF SERVICES THAT WE LOOK TO GET SUPPORT FOR.
UNDER THIS PROGRAM, THE EVALUATION CRITERIA FOR THE SOLICITATION WILL INCLUDE EXPERIENCE, BACKGROUND, KEY PERSONNEL, QUALIFICATIONS OF THE FIRM, AND THE KEY SUB CONSULTANTS.
ADDITIONALLY, WE WILL BE ASKING THOSE WHO PROPOSE THEIR UNDERSTANDING OF THE PROJECT AND THE NEEDS OF THE DEPARTMENT AND THE VISION FOR THE DEPARTMENT THAT WE HAVE.
THERE WILL BE SS B E AND M W B E PRIME CONTRACT POINTS OF 10 AND 10.
AND THE CE BETA REQUIREMENTS SUBCONTRACTING REQUIREMENTS ARE 17% M W B E AND 2% A A B E.
OUR GOAL SETTING COMMITTEE MEMBERS ARE MYSELF, MICHAEL SENDEN, ANGELICA MATA, NIKKI RAMOS, FRANK MUNOZ, AND JULIANA LOPEZ.
AND AGAIN, OUR S BETA PROGRAM CRITERIA ARE 20 POINTS.
AND THE AVAILABILITY ANALYSIS IS BASED ON THE ANALYSIS ON A CONTRACT BASIS, PREVIOUS UTILIZATION BASED ON ENGINEERING AND CONSULTING OF SIMILAR,
[00:25:01]
UM, SERVICES.AND THE CENTRAL VENDOR REGISTRY.
WE ANTICIPATE RELEASING THIS SOLICITATION ON FEBRUARY 6TH.
WE WILL HAVE A PRE-SUBMIT CONFERENCE ON THE 21ST OF FEBRUARY, AND THE DUE DATE FOR THESE PROPOSALS WILL BE MARCH 22ND.
WE ANTICIPATE COMING BACK TO THE COUNCIL FOR CONSIDERATION ON AUGUST 10TH, AND THEN AWARDED THE CONTRACT IN AUGUST, 2023.
AND WITH THAT, I'LL TAKE ANY QUESTIONS.
LET ME ASK, DO YOU OR DO YOUR DEPARTMENT ALREADY HAVE IN MIND A PARTICULAR NEED THAT YOU WANT TO BRING A CONSULTING TEAM TOGETHER TO WORK ON FOR FUTURE TRANSPORTATION? YES.
THE IMPORTANCE OF THIS CONTRACT IS, IT'S REALLY HOW I THINK OF THINGS OF FEDERAL FUNDING.
SO IN TERMS OF THE BIPARTISAN INFRASTRUCTURE LAW AND THE INFLATION REDUCTION ACT, WE BASICALLY HAVE ABOUT FIVE YEARS TO DEVELOP REALLY GREAT PLANS, COMPREHENSIVE PLANS AND STUDIES THAT CAN EITHER BE PUSHED FORWARD TO APPLY FOR ENGINEERING SUPPORT OR CONSTRUCTION.
AND SO A LARGE PART OF THE WORK THAT WE ANTICIPATE BEING COVERED ARE DESIGN, ROADWAY DESIGN, ALSO OUR QUIET ZONE, MAKING SURE THAT WE ARE DOING THE ANALYSIS AND HAVE ENGINEERS ON THE FIRMS, ON THE TEAMS THAT PROPOSE TO SUPPORT THE ANALYSIS AND MAINTENANCE OF OUR QUIET ZONE PROGRAM, OUR VISION ZERO PROGRAM, DEVELOPING DESIGNS FOR PROVEN PEDESTRIAN SAFETY COUNTERMEASURES AS WE WORK WITH THE COUNCIL AND THE DIFFERENT DISTRICTS TO ADDRESS THOSE PARTICULAR ISSUES.
IF WE HAVE A NEED FOR ANALYSIS OF SAFETY IN PARTICULAR AREAS, WE WILL BE USING THE SERVICES OF FIRMS HERE.
AND ALSO TO SUPPORT OUR PLANNING EFFORTS.
ONE OF THE, UM, BIGGEST CHALLENGES IS THAT A LOT OF THE WORK THAT THE PUBLIC WORKS DEPARTMENT DOES, WE DON'T HAVE A LOT OF ROBUST PLANNING AND COMMUNITY CONVERSATION.
AND THE DESIGNS THAT COME FROM THAT CONVERSATION SHOULD BE INFORMING WHAT WE BUILD AND CONSTRUCT.
AND SO A LARGE PART OF THE EFFORT IS GOING TO BE GETTING FIRMS IN WHO CAN HELP WITH STAFF AUGMENTATION.
WE ARE HAVING CHALLENGES NATIONALLY WITH HIRING ENGINEERS AND PLANNERS, AND WE'RE ACTUALLY COMPETING WITH A LOT OF CITIES WHO ARE INVESTING IN THE PLANNING WORK.
SO GETTING THOSE FIRMS THAT HAVE STAFF AVAILABLE FOR STAFF AUGMENTATION AND OR TO DELIVER THOSE SERVICES BASED ON THE NEEDS AND THE PLANS AND THE STUDIES THAT WE'LL BE DOING ARE REALLY CRITICAL RIGHT NOW, BECAUSE AGAIN, WE HAVE FIVE YEARS TO REALLY GO HARD AND APPLY FOR FEDERAL FUNDS UNDER THE VARIOUS DISCRETIONARY GRANT PROGRAMS THAT ARE OUT THERE.
YOU KNOW, THANK YOU FOR THAT EXPLANATION.
I THINK IT IS IMPORTANT THAT WE'RE PREPARED TO WORK WITH FEDERAL GOVERNMENT ON SOME OF THAT MONEY THAT COULD BE COMING OUR WAY.
I WAS ALSO PLEASED TO HEAR YOU TALK ABOUT, UM, THE IMPORTANCE OF UNDERSTANDING LOCALLY.
AND I HOPE THAT WHAT WE FIND THROUGH THIS, UH, THIS R F P, THAT THERE ARE LOCAL FIRMS THAT CAN MEET SOME OF THIS NEED.
I RECOGNIZE WE MAY BE LOOKING AT SOME NATIONAL FIRMS AS WELL, BUT I THINK IT'S IMPORTANT THAT IF WE HAVE LOCAL CAPABILITY, THAT UH, WE DEFINITELY GIVE THEM AN OPPORTUNITY TO PARTICIPATE.
ANY OTHER COMMITTEE MEMBERS HAVE A QUESTION? COUNCILMAN BRAVO.
THANK YOU, CHAIR TAMIKA, THANK YOU FOR THAT PRESENTATION.
UM, ONE THING THAT COMES TO MIND IS WHAT I'VE HEARD FROM A LOT OF MY CONSTITUENTS IS CONCERN THAT THE CITY OFTEN CONTRACTS WHEN WE DO, UM, ANY KIND OF PLANNING, DESIGN OR STUDIES, UH, ON TRAFFIC THAT WE GO TO, UM, ENGINEERING FIRMS THAT ARE BUSINESS AS USUAL, CAR-CENTRIC FOCUSED CULTURE FIRMS. AND PEOPLE WANT TO, WHAT I HEAR FROM MY CONSTITUENTS IS THAT THEY WANT TO SEE PEOPLE WHO ARE THINKING MORE ABOUT MULTIMODAL TRANSPORTATION.
THEY'RE THINKING MORE ABOUT PEDESTRIAN MOBILITY, THAT ARE THINKING MORE ABOUT, YOU KNOW, UM, HOW DO WE CREATE MORE, UM, BIKE LANES.
AND SO THAT'S, THAT'S WHAT I HEAR FROM MY CONSTITUENTS.
I WANNA SHARE THAT WITH YOU AND SEE HOW WE CAN MAKE SURE THAT THAT IS REFLECTED IN, IN THE CRI SELECTION CRITERIA.
THAT'S, I'M SO HAPPY TO HEAR YOU SAY THAT, COUNCILMAN BRAVO, BECAUSE THAT'S THE APPROACH THAT WE ARE TAKING AS A DEPARTMENT.
AND WE'VE HAD MANY DISCUSSIONS WITH A LOT OF LOCAL FIRMS ABOUT WHAT WE'RE LOOKING FOR AND WHAT OUR NEEDS ARE.
AND REALLY THAT'S THE EDUCATION PIECE, IS THAT WE'RE LOOKING FOR FIRMS WHO HAVE A MULTIMODAL APPROACH, WHO SIMILAR TO R S N H, THE FIRM THAT WAS AWARDED THE BIKE NETWORK PLAN, THEY HAVE A DEPTH AND BREADTH OF UNDERSTANDING THAT IT'S THAT NEXUS BETWEEN THE HIGHWAY AND HOW YOU GET THERE.
AND WE WANNA EXPAND THE OPPORTUNITIES FOR ALTERNATIVE MODES LIKE THE BIKE, LIKE USING TRANSIT.
AND WE HAVE CONVERSATIONS, WE'VE BEEN HAVING CONVERSATIONS
[00:30:01]
WITH FIRMS TO HELP THEM UNDERSTAND THAT THIS IS A DIFFERENT DIRECTION AND THAT PEOPLE IN THE CITY WANT TO MOVE DIFFERENTLY.AND SO WE ARE DISCUSSING WITH THEM THESE ARE OUR NEEDS.
WE NEED TRANSPORTATION ENGINEERS.
WE'RE CALLING THEM PLAN ENGINEERS.
WE NEED A LOT OF PLAN ENGINEERS WHO TAKE THE CONVERSATIONS WITH THE COMMUNITY AND INTEGRATE THEM INTO THE DESIGN AND WHAT THEY BUILD, WHETHER IT'S A BIKE LANE, WHETHER IT'S A DEDICATED TRANSIT LANE.
SO WE ARE HAVING THAT CONVERSATION WITH THE FIRMS WHO ARE HAVING, WE'RE GIVING BRIEFINGS TO THEM TO UNDERSTAND THE ETHOS OF THE CITY AND THE DIRECTION THAT WE'RE MOVING IN.
AND, AND REALLY THE REALITY IS THAT OUR CONVERSATIONS WITH THESE FIRMS COME FROM THE PERSPECTIVE OF, IN ORDER FOR THE CITY TO MEET OUR CLIMATE ACTION AND ADAPT ADAPTABILITY PLAN AND GOALS, WE HAVE TO BE MAKING SURE WE'RE TAKING THOSE STEPS WITH THE TRANSPORTATION CHOICES THAT WE MAKE.
AND THAT STARTS WITH PLANNING TO INTEGRATE DIFFERENT CHOICES AND MODAL OPTIONS FOR PEOPLE.
THANK YOU SO MUCH FOR THAT ANSWER.
THOSE ARE, THAT'S MY ONLY QUESTION, CHAIR.
THANK YOU, COUNCILMAN, AGAIN, EITHER OTHER, UH, COMMITTEE MEMBER HAVE A QUESTION.
NOW, AGAIN, THIS IS A BRIEFING, SO WE DON'T HAVE TO GO AHEAD AND APPROVE THIS, BUT THANK YOU, MANNY, FOR YOUR INITIATIVE.
THE REST OF THE ISSUES WILL NEED TO GO TO COUNCIL, SO I'LL LOOK TO YOU TO MAKE THOSE MOTIONS.
BUT AT THIS TIME, THIS WAS A BRIEFING.
UH, AND THAT CONCLUDES THIS BRIEFING.
[Post-Solicitation High Profile Briefings ]
SEVEN IS A POSTS SOLICITATION HIGH PROFILE BRIEFING.UH, THIS IS WITH PUBLIC WORKS AND IT'S ON ALL CALL ON-CALL CIVIL ENGINEERING SERVICES.
AND SO RAZ, YOU'LL BE DOING A PRESENTATION AND THIS WILL REQUIRE APPROVAL OF, OF THIS COMMITTEE.
GOOD MORNING CHAIR AND COMMITTEE MEMBER.
I'M REZI CEI, DIRECTOR OF PUBLIC WORKS DEPARTMENT.
THIS IS FOR ENGINEERING SUPPORT FOR DEVELOPMENT AND IMPLEMENTATION OF INFRASTRUCTURE MANAGEMENT PROGRAM TO INCLUDE SITE DRAINAGE ANALYSIS, PROJECT INSPECTION, AND PREPARATION OF PROJECT DOCUMENT.
SOLICITATION TYPE IS REQUEST FOR QUALIFICATION.
ESTIMATED VALUE ANNUALLY IS TWO POINT 85 MILLION, AND TOTAL VALUE WILL BE 14.25 MILLION.
PROPOSED TERM WILL BE THREE YEARS WITH TWO ONE YEAR EXTENSION.
SCORING CRITERIA INCLUDES CRITERIA, A, EXPERIENCE, BACKGROUND, QUALIFICATIONS OF PRIME FIRM KEY PERSONNEL, AND KEY SUB CONSULTING, WHICH IS 2040 POINTS.
CRITERIA B INCLUDES UNDERSTANDING OF THE PROJECT, PROPOSED MANAGEMENT PLAN, 25 POINTS AND CRITERIA C EXPERIENCE IN SAN ANTONIO REGION AND PAST PERFORMANCE 35 POINTS.
SDA REQUIREMENT IS 25 POINT M W B SUBCONTRACTING REQUIREMENT.
LOCAL PERFORMANCE PROGRAM IS NOT APPLICABLE AND VETERAN OWNED SMALL BUSINESS PERFORMANCE ALSO IS NOT APPLICABLE.
THIS IS THE, WE HAVE RECEIVED 24 APPLICANT FOR THIS PROJECT, AND WE ARE RECOMMENDING THREE TO BE SELECTED TO GO TO COUNCIL IN NEXT FEW WEEKS.
NUMBER OF THE VENDOR NOTIFIED 192 NUMBER OF THE VENDOR AT THE PRE-SUBMIT ATTENDED 25 AND NUMBER OF THE RESPONSE RECEIVED 24 RESULT OF MINIMUM REQUIREMENT REVIEW, NOT MATERIAL FUNDING, AND RESULT OF DUE DILIGENT REVIEW AND ALSO NOT MATERIAL FUNDED.
I'M HAPPY TO TAKE ANY QUESTION YOU MAY HAVE.
YOU KNOW, ONE CONCERN I'VE EXPRESSED AS A COUNCIL MEMBER IS THERE'S SO MUCH, UH, DIFFERENT GROWTH GOING ON IN THE CITY AND PROJECTED TO GO ON, UH, NOT JUST THE CITIES, BUT OTHER PRIVATE ENTERPRISES THAT ARE BUILDING AND DEVELOPING ALL OVER THE CITY.
AND I'VE ALWAYS, UH, I'VE, I'VE BEEN SAYING RECENTLY, DO WE HAVE THE CAPACITY TO GO AHEAD AND, AND MANAGE ALL OF THESE OR DO WE HAVE ALL THE STAFF TO ADDRESS ALL OF THE NEEDS? AND WHEN I SEE, UH, THAT YOU'RE RECOMMENDING THREE OUT OF 20 SOMETHING, I'M WONDERING, ARE THOSE THREE ENGINEERING FIRMS GOING TO BE ENOUGH TO MEET THE NEEDS THAT THE CITY MAY HAVE TO ADDRESS WITH ALL THE PROJECTS GOING FORWARD? OR COULD WE HAVE DONE FOUR OR FIVE AND HAVE MORE ON CALL AVAILABLE? SO, YOU KNOW, COULD YOU ADDRESS THAT? YEAH.
FIRST OF ALL, REGARDING THE STAFF CAPACITY, THANKS, YOU AND OTHER COUNCIL MEMBER, LAST BUDGET HERE, WE GOT ADDITIONAL STAFF TO HELP US ON BECAUSE OUR LARGEST BOND 2022, AND ALSO WE HAVE A BIG, YOU'RE RIGHT,
[00:35:01]
SS AND P PROGRAM, 130 MILLION THIS YEAR.AND WE ARE ANTICIPATING TO HAVE ONE 20 NEXT YEAR.
WE HAVE HIRED A NUMBER OF THEM.
WE ARE HAVING SOME CHALLENGES LIKE ANYBODY ELSE TO HIRING THOSE PEOPLE.
BUT WE HAVE HIRED GOOD NUMBER OF THEM.
ALSO, WE ARE TAKING ADVANTAGE OF SOME OF THE STAFF AUGMENTATION.
WE HAVE NUMBER OF THE CONSULTING, THEY PROVIDE US A STAFF AUGMENTATION, THE GOOD THINGS ABOUT STAFF AUGMENTATION, WE CALL THEM AS WE NEED IT.
WHEN WE DON'T NEED THEM, WE RELEASE THEM REGARDING THE CONSULTING, WHY WE ARE SELECTING THREE, NOT MORE.
WE ARE INCREASING THEIR CAPACITY AND WE KNOW THEY CAN HANDLE, AND ALSO WE WILL COME BACK ADDITIONAL REQUESTS FOR ADVERTISING.
ONE MORE BECAUSE THIS IS GOING TO BE ONLY FOR, UH, SS, M, P, AND I M P.
UH, ANY OTHER COMMITTEE MEMBERS HAVE ANY QUESTIONS? NO.
NOW THIS DOES REQUIRE APPROVAL OF THIS COMMITTEE TO PASS ON THE COUNCIL FOR THEIR APPROVAL.
IS THERE A SECOND? I'LL SECOND.
SO IT'S BEEN MOVED AND SECONDED TO APPROVE THIS FROM THIS COMMITTEE TO THE COUNCIL FOR THEIR ACTION.
[Final Internal Audit Report ]
WE'RE MOVING ON TO, UM, INTERNAL AUDIT REPORTS.AGAIN, THESE ARE ONES THAT NEED TO BE ACCEPTED BY THE COMMITTEE.
UH, THE FIRST ONE IS THE INTERNAL AUDIT OF FINANCE AND ASSET CAPITALIZATION.
AND KEVIN, SIR, WHAT WAS YOURS? YES, SIR.
I'LL GO OVER THE, UH, THE PRESENTATION.
AND AGAIN, LIKE YOU JUST MENTIONED, THIS WAS, UH, AN AUDIT OF ASSET CAPITALIZATION PROCESS.
AND WHEN WE TALK ABOUT, UH, FIXED, WE'RE TALKING ABOUT FIXED ASSETS.
THESE ARE ASSETS THAT GENERALLY, UH, HAVE A VALUE OF MORE THAN $5,000 IN USEFUL LIFE OF, OF ONE YEAR.
SO IT'S THE BIGGER, UH, EQUIPMENT ALL THE WAY UP TO BUILDINGS, LITERALLY, UH, THAT WE WOULD PURCHASE.
BUT THE OBJECTIVE HERE WAS TO DETERMINE IF THE ASSETS WERE PROPERLY ACCOUNTED FOR, CAPITALIZED, DEPRECIATED, UH, IN ACCORDANCE WITH FINANCE POLICIES AND ACCOUNTING STANDARDS.
OVERALL CONCLUSIONS GENERALLY, YES.
BUT WE FOUND SOME AREAS WHERE THEY CAN IMPROVE THE PROCESS.
AND THAT'S SPECIFICALLY THROUGH CONDUCTING PHYSICAL INVENTORIES, JUST TO CONFIRM THE EXISTENCE OF THESE ASSETS THAT ARE ON THE BOOKS, AND ALSO IMPROVING THE CONSISTENCY ACROSS DEPARTMENTS.
UH, WITH THE ASSET DISPOSAL PROCESS.
MORE SPECIFICALLY AS I GO THROUGH THESE, UH, THE ASSET INVENTORY, WE TOOK A SAMPLE OF FIVE OF EIGHT DEPARTMENTS AND FIVE OF THOSE DEPARTMENTS HAD, HAD, HAD NOT HAD A RECENT, UH, INVENTORY OF THOSE ASSETS.
UH, AND WITHIN THE LAST TWO YEARS, AND THERE'S, UH, ADMINISTRATIVE DIRECTORS AND POLICIES THAT DICTATE HOW OFTEN INVENTORIES SHOULD BE PERFORMED.
AND THOSE WERE NOT DONE, UH, ASSET DISPOSALS.
UH, A SIGNIFICANT NUMBER OF OUR TESTS, UH, ITEMS THAT WE LOOKED AT DID NOT HAVE THE PROPER DOCUMENTATION OR PROPER APPROVAL FOR ASSETS TO BE DISPOSED.
THE APPROVAL REQUIRES, UH, BASICALLY THE, THE DEPARTMENT DIRECTOR TO VALIDATE, IN FACT, YES, THESE ASSETS ARE READY FOR DISPOSAL, UH, THROUGH THE APPROPRIATE PROCESS.
AND SO THERE, IT WAS REALLY AN AUTHORIZATION AND APPROVAL PROCESS.
MOST OF THOSE WERE LIMITED TO ONE DEPARTMENT, AND TROY WILL TALK ABOUT THAT, UH, IN A LITTLE BIT MORE.
UH, USER ACCESS WAS ALSO EXCESSIVE, NOT SIGNIFICANTLY IN TERMS OF NUMBER OF USERS, BUT THERE WAS SOME USERS THAT HAD ACCESS TO THE FULL PROCESS OF AC OF PURCHASING AND DISPOSAL.
AND THOSE SHOULD GENERALLY BE SEGREGATED, UH, JUST FOR BETTER CONTROLS.
UH, MANAGEMENT DID AGREE WITH OUR RECOMMENDATIONS.
THEIR ANTICIPATED COMPLETION WAS THIS PAST DECEMBER AT THE END OF THE YEAR.
I'M CONFIDENT THAT THEY DID THAT.
UH, BUT WE WILL BE FOLLOWING UP AND DOING OUR FOLLOW UP WORK TO ENSURE THAT IT WAS DONE.
WE NEED TO LET, FROM A FOLLOW UP PERSPECTIVE, WE NEED TO LET THE, THE NEW PROCESS RUN FOR A COUPLE OF MONTHS JUST SO WE CAN MAKE SURE THAT YES, THEY DID MAKE THE CHANGE, BUT THAT THE CHANGE STUCK.
UH, AND SO THIS IS NOT SOMETHING WE CAN GO IN, IN MOST CASES AND REVIEW RIGHT AWAY, BUT WE WILL, WE'VE GOT IT ON OUR SCHEDULE TO BE REVIEWING IT OVER THE NEXT COUPLE OF MONTHS.
AND, UH, TROY'S HERE TO ANSWER ANY QUESTIONS OR AS AM I, UH, WHAT ARE THESE FINANCIAL ASSETS THAT GET CAPITALIZED IN TERMS OF CAPITAL ASSETS? IT'S REALLY GONNA BE ANYTHING THAT WE PURCHASE THAT'S GONNA BE PHYSICAL IN NATURE AND OVER $5,000, UH, BASED ON OUR ADMINISTRATIVE DIRECTIVE.
SO WHEN A DEPARTMENT PURCHASES SOMETHING THAT'S OVER $5,000 IN PHYSICAL NATURE, WE HAVE A PROCESS IN PLACE WHERE WE'RE RECORDED ON OUR BOOKS AND CAPITALIZE IT.
THAT'S KIND OF WHAT I UNDERSTOOD.
UH, IT IT DISTURBS ME TO SEE THAT, UH, THE DISPOSAL OF THE ASSETS WERE NOT PROPERLY DOCUMENTED.
AND IF WE DON'T DOCUMENT THOSE, HOW DO WE KNOW HOW THEY WERE DISPOSED OF? HOW DO WE KNOW THAT THE CITY RECEIVED THE REMUNERATION? IT SHOULD BE ENTITLED TO WHEN WE DISPOSE OF ASSETS?
[00:40:02]
UM, SO WHAT'S, YOU KNOW, WHAT COULD HAVE TAKEN PLACE? I MEAN, COULD WE HAVE SOLD A TRUCK AND NO ONE KNEW AND ALL OF A SUDDEN SOMEBODY POCKETED $25,000? LEMME CLARIFY THE, THE PROCESS.AND I THINK TROY, THE PROCESS OF DISPOSAL WAS OCCURRING.
UH, WE WERE BEING PAID FOR THAT.
SOMETIMES WE DISPOSE THINGS AT AUCTION, SOMETIMES GIVE TO CHARITY DEPENDING ON THE VALUE.
I MEAN, THESE ARE OLD ASSETS DEPENDING ON THAT.
BUT FROM A, FROM A CONTROL PERSPECTIVE, WE WERE LOOKING AT WHO SAID, WHO SAID, OKAY, IT IS TIME TO DISPOSE THESE ASSETS.
AND WE'RE LOOKING FOR VERY SPECIFIC AUTHORIZATION AND APPROVALS, AGAIN, BY THE DEPARTMENT DIRECTOR.
UH, AND AGAIN, FROM AN AUDIT, FROM A CONTROL PERSPECTIVE, THAT'S WHAT WE'RE LOOKING THOSE, IT WAS THE ADMINISTRATIVE PORTION THAT WAS NOT BEING PROPERLY HANDLED, BUT WE HAVE NO CONCERN, UH, THAT WE WERE NOT GETTING MONEY FOR THOSE ASSETS THAT WE WERE DISPOSED OF.
THIS IS THE ADMINISTRATIVE SIDE OF THE PROCESS.
AND I CAN, I CAN ADD A LITTLE BIT TO THAT.
UM, AND FIRST OF ALL, YOU KNOW, THIS IS THE, WE TALK ABOUT THE BREADTH OF THE ASSETS THAT WE HAVE, 5,000, INCLUDING PHYSICAL ASSETS AND CONSTRUCTION.
SO ANY HELP WE APPRECI THAT FROM KEVIN AND HIS TEAM, UM, ON THE DISPOSAL OF ASSETS.
UM, TO KEVIN'S POINT, WHEN HE LOOKS AT THE ADMINISTRATIVE DIRECTIVE, THERE'S CERTAIN PROTOCOLS AND POLICIES WE HAVE THAT WE HAVE TO FOLLOW.
IN THIS CASE, I THINK IN THE MAJORITY OF THE CASES, IT REQUIRES A FORM THAT'S AUTHORIZED BY THE DIRECTOR AND SAYS, HEY, WE'RE GETTING RID OF THIS.
IN THIS CASE, THERE WAS, WE HAVE SOME DEPARTMENTS THAT ARE VERY, HAVE VERY HIGH VOLUMES.
AND BECAUSE OF THOSE HIGH VOLUMES, WE PUT AN ALTERNATE PROCESS IN PLACE.
AND BASICALLY THAT ALTERNATE PROCESS, IT DIDN'T INCLUDE THE FORM WITH AN AUTHORIZATION, IT WAS JUST THEY WERE COMMUNICATING TO US.
UM, WE WERE DISPO DISPOSING OF THIS LIST OF ASSETS.
SO WE WEREN'T FOLLOWING THE CORRECT PROTOCOLS.
WE DIDN'T HAVE THE ACTUAL SIGNATURES.
BUT THAT HAS SINCE THEN BEEN CORRECTED AND WE'RE GONNA MOVE FORWARD WITH, UM, WITH THE CORRECT PROCESS.
WE ARE ALSO, UM, WE ARE ALSO IN THE PROCESS OF DOING KIND OF A COMPREHENSIVE REVIEW ON OUR ADMINISTRATIVE DIRECTIVES.
WE'VE LEARNED A LOT, AND THERE MAY BE SOME OPPORTUNITY TO REFINE THOSE POLICIES AND ADMINISTRATIVE DIRECTIVES AS WE MOVE FORWARD.
BASED ON KEVIN'S AUDITS AND WHAT WE'VE LEARNED FROM THE PAST, I THINK IT WOULD BE, UH, OF INTEREST TO ME AND MAYBE OTHER COMMITTEE MEMBERS TO SEE WHAT THOSE UPDATED POLICIES OR PROCEDURES ARE, ARE GONNA LOOK LIKE, UH, SINCE YOU'RE RECONSIDERING SOME OF THOSE.
SO AFTER THEY'RE ALL DETERMINED, YEAH, PLEASE SHARE 'EM WITH THIS COMMITTEE.
THE OTHER THING THAT, UM, THAT KEVIN POINTED OUT, UM, WAS THE PHYSICAL INVENTORIES.
I'D LIKE TO ALSO ADD THAT DURING THE TIMEFRAME ON THE AUDIT, UNFORTUNATELY THAT WAS, WE HAD, UM, A LOT OF OUR STAFF WERE OUT DUE TO THE PANDEMIC.
UM, SO A LOT OF THOSE INDIVIDUALS WERE NOT HERE PHYSICALLY, SO WE COULD NOT ACTUALLY CONDUCT THE PHYSICAL, THE PHYSICAL AUDITS OR THE PHYSICAL INVENTORY.
SO THE PANDEMIC WAS FAIRLY DISRUPTIVE.
UM, NOW SINCE WE HAVE PEOPLE BACK IN HOUSE, WE'RE CATCHING UP ON THAT AND HOPEFULLY HAVE THAT CAUGHT UP SOON.
YEAH, CHAIR, I, I THINK THAT'S WHERE THE INVENTORY AS WELL AS THE USER ACCESS.
SO IF I, IF I RECALL CORRECTLY, THE, I THINK THE AUDIT COVERED ROUGHLY CALENDAR YEAR 2021 A LITTLE BIT PRIOR, A LITTLE BIT AFTER THAT MM-HMM.
BUT THAT WAS DURING THE TIME WHEN WE HAD A LOT OF RESOURCES DEPLOYED IN OTHER AREAS.
SO THAT INCLUDED SOME OF THE ROLE MONITORING.
THAT WAS THE THIRD FINDING THAT KEVIN COVERED.
SO THINGS ARE RESUMING BACK TO WHAT WE WOULD CONSIDER NORMAL OPERATIONS.
AND THEN HIS TROY SAID, WE'RE GONNA TAKE A COMPREHENSIVE LOOK AT OUR ADMINISTRATIVE DIRECTIVES, SEE IF THERE'S THINGS THAT WE CAN DO TO IMPROVE.
BUT IN ADDITION TO THAT, WE'RE GOING BACK TO OUR NORMAL PROCESSES AND PROTOCOLS.
WELL, I'LL LOOK FORWARD TO HEARING MORE FROM KEVIN.
'CAUSE HE SAID HE IS GONNA DO A FOLLOW UP IN SIX MONTHS OR SOMETHING.
YOU KNOW, THE PERFECT STORM, YOU KNOW, FOR FINANCE.
UH, DURING THIS AUDIT TIMEFRAME, THAT WAS ALSO WHEN WE WERE MOVING INTO THE, THE CITY TOWER UHHUH
SO THE ASSET DISPOSALS THAT TROY MENTIONED, HIGH VOLUME MM-HMM.
AND THERE WAS JUST, THERE WAS A LOT GOING ON.
ANY OTHER QUESTIONS FROM ANY OTHER COMMITTEE MEMBERS? NOPE.
NO ONE, NO ONE QUESTIONS YOUR INTEGRITY LIKE I DO.
THIS DOES REQUIRE COUNCIL APPROVAL FOR THIS TO MOVE FORWARD.
UH, SO, UH, I WOULD ENTERTAIN A MOTION TO GO AHEAD AND APPROVE ITEM EIGHT.
I DO, I HAVE OUR MOTION TO APPROVE.
OKAY, SO THIS HAS BEEN MOVED AND, AND SECONDED.
THIS WILL BE ACCEPTED BY THIS COMMITTEE.
UH, THIS IS AN AUDIT ON O R M CLAIMS. SO, YES, SIR.
[00:45:01]
UH, UH, THIS WAS AN AUDIT OF THE RISK MANAGEMENT CLAIM SUBROGATION PROCESS, SPECIFICALLY IN BUDDY VARGAS, WHO WAS THE MANAGER, UH, ONE OF THE MANAGERS OF MY DEPARTMENT AND MANAGED THIS AUDIT.HE'LL GO AHEAD AND WALK US THROUGH THE PRESENTATION.
UH, THE AUDIT OBJECTIVE WAS TO DETERMINE IF THE CLAIM SUBROGATION PROCESS IS EFFECTIVE IN COMPLIANCE WITH RELEVANT POLICIES AND PROCEDURES.
UH, START OFF BY DEFINING SUBROGATION.
SUBROGATION OCCURS OR POTENTIALLY CAN OCCUR WHEN THERE'S DAMAGE TO CITY PROPERTY OR AN EMPLOYEE'S INJURED BY A THIRD PARTY.
AND IT IS DETERMINED LATER THAT THE CITY CAN RECOVER FROM THAT THIRD PARTY.
UH, OUR OVERALL CONCLUSION WAS THAT WE COULD NOT DETERMINE EFFECTIVENESS AND COMPLIANCE DUE TO INSUFFICIENT DOCUMENTATION THAT WASN'T MAINTAINED.
UH, WE ALSO IDENTIFIED, UH, INACCURACIES IN PERFORMANCE MATRIX.
WE TOOK A SAMPLE OF 25 CLAIMS AND 12 DID NOT HAVE THE REQUIRED DOCUMENTATION.
UH, WE ALSO FOUND AN OPPORTUNITY WITH KEY PERFORMANCE INDICATORS.
WE TOOK A LOOK AT THREE MONTHS OF REPORTS AND WE IDENTIFIED INACCURACIES IN THE FORCE, FORECASTED AMOUNTS.
UM, THERE'S PERCENTAGES ALSO THAT ARE REPORTED, UH, PERCENTAGE VARIANCES, PERCENTAGE RECOVERY, AND THERE WERE SOME INACCURACIES IN THOSE AREAS.
UH, FINALLY WE IDENTIFIED EXCESSIVE USER ACCESS WITH THE, UH, SYSTEM THAT'S USED BY RISK MANAGEMENT.
UH, RISK MANAGEMENT AGREED WITH THESE RECOMMENDATIONS AND DEVELOPED ACTION PLANS TO ADDRESS THESE ISSUES.
AGAIN, THESE RECOMMENDATIONS, UH, THE ANTICIPATED COMPLETION DATE IS DECEMBER, 2022.
SO WE'LL BE FOLLOWING UP ON THESE ITEMS AND REPEAT, WE'LL BE REPORTING ON THESE PROBABLY IN APRIL WHEN WE REPORT THE FOLLOW UP THE NEXT QUARTER.
AND THAT CONCLUDES MY PRESENTATION.
UH, RISK MANAGEMENT IS HERE TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.
UH, JUST SAY BY THE, DOESN'T LOOK VERY GOOD WHEN, UM, YOU KNOW, NEARLY 50% OF RECORD SAMPLES WERE NOT SUPPORTED.
THAT'S A WORRISOME FACTOR, UH, WHERE RECOVERIES WERE NOT MONITORED.
UH, UH, ALL OF THESE ARE VERY WORRISOME.
AND I WONDER, UH, IF WE'RE GOING TO SAY, WELL, BECAUSE OF THE PANDEMIC AND BECAUSE PEOPLE WERE REASSIGNED, WE'VE RUN INTO A SIMILAR PROBLEM IN THIS DEPARTMENT AS, AS WE HAVE IN OTHERS.
SO I WELCOME YOU KIND OF ANSWERING THOSE QUESTIONS FOR ME.
GOOD MORNING CHAIR, DEBORAH OJO, DIRECTOR OF RISK MANAGEMENT.
UH, SO IT WAS NONE OF THOSE FACTORS, BUT, UH, IN JANUARY THE CITY DID TRANSITION TO A NEW WORKERS' COMP, THIRD PARTY ADMINISTRATOR.
AND SO AT, DURING THE TIME OF THE AUDIT, WE WERE ALSO GOING THROUGH A DATA CONVERSION AND TRANSITION OF DATA.
AND SO WE HAD NOT COMPLETED THAT PROCESS.
WE WERE STILL IN THE MIDDLE OF THE PROCESS.
THEREFORE, WHEN THE AUDIT CAME IN, THE DATA WAS STILL BEING TRANSFERRED, UH, AND TRANSITIONING TO FROM OUR OUTGOING T P A INTO THE NEW T P A SYSTEM.
SO THAT CREATED AN ISSUE WITH BEING ABLE TO VERIFY SOME OF THE DATA THAT HAD BEEN SELECTED FOR THE RANDOM POOL OF SAMPLING.
COULDN'T YOU HAVE SUGGESTED OR ASKED THAT THEY DELAY THAT UNTIL YOU HAD COMPLETED THE, THE WORK THAT WAS UNDERWAY TO TRANSFER? OR DID THEY, KEVIN? UH, WE, WE WERE AWARE OF THE TRANSITION THAT HAPPENED IN, IN JANUARY OF 2022, I GUESS OUR EXPECTATION, AND WE DID THIS AUDIT.
I MEAN, WE WERE DOING THIS AUDIT ALL THE WAY INTO AUGUST AND SEPTEMBER THAT THAT TRANSITION OF DATA WOULD'VE OCCURRED MUCH QUICKER.
UH, THAT IS A RELATIVELY LONG TRANSITION TIME TO TRANSFER DATA FROM ONE VENDOR TO ANOTHER VENDOR.
UH, I WILL ALSO SAY THE DATA WAS EXTENSIVE.
THESE WERE IMAGES, AND SO IT WAS A LOT OF DATA.
BUT, UH, WE WERE AWARE OF THAT AND WERE TOLD DURING THE AUDIT THAT YES, IT HAD BEEN COMPLETED AND BEEN COMPLETED AND WE WENT BACK AND VERIFIED AND STILL HAD NOT BEEN COMPLETED.
SO WE WERE AWARE OF IT, BUT, UH, AGAIN, WE WERE SURPRISED BY THE, THE TIME, THE TIMELINE.
I'VE GOT ANOTHER QUESTION OR TWO ABOUT, UH, RISK MANAGEMENT IN GENERAL.
UH, YOU WERE, UH, TALKING ABOUT, UM, PEOPLE WHO ARE INJURED ON THE JOB.
UH, DOES RISK MANAGEMENT ALSO LOOK AT, FOR EXAMPLE, UH, DAMAGE TO CITY PROPERTY THAT COULD CLAIM TO BE REIMBURSED OR THINGS LIKE THAT? IF SOMEBODY HITS A CITY VEHICLE OR RUNS INTO A CITY SIGN OR SOMETHING LIKE THAT, DOES RISK MANAGEMENT ALSO DEAL WITH THOSE? YES, SIR.
THIS AUDIT WOULD COVER THAT AS WELL.
THAT IS WHAT WE CALL SUBROGATION.
AND, UM, HOW ABOUT, I, I KNOW, UM, THE FIRE DEPARTMENT TRIES TO RECUPERATE MONEY WHEN IT TAKES PEOPLE TO THE HOSPITAL AND THINGS LIKE THAT.
DOES YOUR DEPARTMENT ALSO WORK WITH THE, WITH THAT ISSUE? NO, SIR.
WE'RE NOT INVOLVED WITH THE COLLECTIONS DEPART.
THAT'S TOTALLY FIRE DEPARTMENT.
I GUESS THEY WORK WITH MEDICARE OR SOMETHING LIKE THAT.
WELL, THE REASON WHY I BRING BOTH OF THOSE UP IS I'VE
[00:50:01]
BEEN CONTACTED BY VENDORS WHO HAVE SAID THEY WOULD LIKE TO GO AHEAD AND TAKE ON SOME OF THE RESPONSIBILITY THAT THE CITY UNDERTAKES IN RECUPERATING, UH, YOU KNOW, FINANCIAL, UH, DAMAGE THAT THE CITY'S RECEIVED.UH, AND UH, WHEN, WHEN TALKING TO BOTH OF THESE VENDORS AND ONE WAS MORE OR LESS DEALING WITH FIRE DEPARTMENT AND MEDICARE AND THE OTHER ONE WAS DEALING WITH DAMAGE TO CITY PROPERTY, ET CETERA, THEY BOTH SAID, WELL, WE'VE BEEN TOLD THAT THEY DON'T NEED ANY HELP.
SO, YOU KNOW, WHEN THIS COMES UP AND I I SEE THIS, I, I'M WONDERING, UH, HAVE WE EXAMINED A THIRD PARTY OUTSIDE, UH, EXPERT TO COME IN AND HELP US DO A BETTER JOB OF GETTING CLAIMS, UH, THROUGH PROPERTY DAMAGE TO THE CITY, FOR EXAMPLE.
UH, AND, UH, WHAT HAVE WE FOUND WHEN WE'VE LOOKED AT ANY OF THOSE THINGS? 'CAUSE CERTAINLY IT WOULD RELIEVE THIS DEPARTMENT OR, YOU KNOW, IT WOULD ADD TO THE ABILITY OF THIS DEPARTMENT TO RECUPERATE MONEY FOR THE CITY.
SO, COUNCILMAN, LET ME, LET ME SEPARATE THE TWO.
SO FOR ON THE E M S AMBULANCE TRANSPORT SERVICES, WE HAVE A THIRD PARTY CONTRACTOR THAT WE CONTRACT WITH, OKAY.
FOR THAT AND HAVE FOR YEARS, UH, THAT CONTRACTOR'S RESPONSIBLE FOR THAT BUILDING AND COLLECTION SERVICE.
UH, WE, UH, WORK WITH THE FIRE DEPARTMENT TO MONITOR THAT CONTRACT SO THAT THAT IS IN PLACE.
AND WE BID THAT OUT, UM, FOR ABOUT EVERY FIVE YEARS.
I THINK ROUGHLY THE SUBROGATION, WHICH IS THE PART THAT THIS AUDIT IS HONING IN ON, IS ANY THIRD PARTY THAT CAUSES DAMAGE TO OUR VEHICLES, TO OUR EMPLOYEES, TO OUR INFRASTRUCTURE, TO OUR SIGNAGE, TO OUR TRAFFIC SIGNALS, ANY OF THAT.
WE HAVE THE ABILITY TO FILE A SUBROGATION CLAIM TO TRY TO RECOVER THOSE COSTS.
THAT IS DONE INTERNALLY RIGHT NOW BY RISK MANAGEMENT.
UM, I THINK THE AUDIT NOTES THAT IN 2021 WE COLLECTED ABOUT $1.1 MILLION IN SUBROGATION PAYMENTS.
WE HAVE BEEN APPROACHED PERIODICALLY BY, UH, ONE GROUP IN PARTICULAR THAT WOULD LIKE TO DO THAT FOR US.
UM, THEY OFTEN TALK ABOUT THAT BEING A NO COST TO THE CITY, BUT IT IS BECAUSE PART OF THAT RECOVERY WOULD GO TO THEM AND NOT US.
SO THE, THE COMPARISON IS REALLY WHAT CAN WE DO INTERNALLY VERSUS, UM, OUTSOURCING THAT I HAVEN'T SEEN ANYTHING YET THAT, THAT, UM, COMPELS US TO WANT TO ISSUE AN R F P FOR THAT PARTICULAR SERVICE.
BUT IT'S CERTAINLY SOMETHING WE WILL CONTINUE TO LOOK AT.
AND I THINK AS, UH, KEVIN MENTIONED, UM, AND I'LL ACKNOWLEDGE THE TRANSITION FROM OUR PRIOR T P A TO OUR CURRENT T P A, THAT WHOLE DATA CONVERSION PROCESS, THE WHOLE TRANSITION, UH, WAS DONE QUICKLY.
WE HIRED THE NEW VENDOR, I THINK IN ROUGHLY LATE OCTOBER, MAYBE EARLY NOVEMBER.
UM, AND THEN WE USED OUR PRIOR T P A TO, TO HELP US WITH SOME OF THE TRANSITION FOR A COUPLE OF MONTHS.
BUT IT WAS A ROUGH TRANSITION.
AND SO WE THINK WE'VE GOTTEN TO A POINT WHERE ALL THE DATA'S BEEN CONVERTED, IT'S IN THE NEW SYSTEM.
I'VE ACTUALLY TALKED TO KEVIN ABOUT A COUPLE OF AREAS THAT I WOULD LIKE HIM TO COME BACK AND AUDIT, UH, MAYBE MID TO LATE NEXT YEAR.
UH, BECAUSE AGAIN, WE NEED A LITTLE BIT OF TIME AS DEBRA AND I HAVE WORKED ON THIS TO MAKE SURE THAT, AND DEBRA AND HER TEAM HAVE SPENT A LOT OF TIME LOOKING AT THIS TO MAKE SURE THAT WE HAVE GOTTEN ALL OF THAT IN PLACE AND THAT IS WORKING CORRECTLY.
SO I'VE ASKED KEVIN TO MAYBE LOOK AT THE FIRST SIX MONTHS OF 2023 AND COME BACK AND THEN REPORT TO THIS COMMITTEE.
BUT, UM, THAT IS CERTAINLY SOMETHING WE'LL CONTINUE TO LOOK AT.
WELL, YOU KNOW, I DON'T MEAN TO TAKE AWAY FROM, UH, THE DEPARTMENT, UH, AND I DON'T EVEN KNOW THE NAME OF THE COMPANY THAT REACHED OUT TO ME, AND I'M NOT ADVOCATING FOR ANYBODY.
UH, BUT I WILL ADVOCATE THAT WE GIVE IT ADDITIONAL CONSIDERATION AND I'D LIKE TO VISIT WITH YOU MORE ABOUT THAT.
BUT THAT'S KIND OF A SEPARATE THING FROM WHAT WE'RE TALKING ABOUT TODAY AND I'M HAPPY TO TALK WITH YOU MORE OKAY.
ABOUT THAT COUNCILMAN AS WELL.
KEVIN, YOU WANTED TO SAY SOMETHING ELSE? AND JUST ONE MORE PART OF THE PROCESS IS BEN WAS TALKING ABOUT IN ONE AREA THAT WE DID LOOK AT, YOU KNOW, UH, WITH SUBROGATION, IDENTIFYING THE CLAIMS, IDENTIFYING WHEN THERE IS BEEN PROPERTY DAMAGE AND RISK MANAGEMENT DOES HAVE A GOOD PROCESS IN PLACE WORKING WITH THE DEPARTMENTS.
OBVIOUSLY PUBLIC WORKS IS, YOU KNOW, THEY NOTICE, UH, WHEN IT'S TRAFFIC SIGNALS OR STUFF LIKE THAT.
SO THERE IS A GOOD PROCESS WITH OUR DEPARTMENTS.
SO WHEN DAMAGE IS, UH, DOES INCUR, UH, THAT THERE'S A NOTIFICATION TO RISK MANAGEMENT SO THEY CAN BEGIN THAT PROCESS.
AND HEAVILY WITH PARKS AND REC, PUBLIC WORKS, B E S D I MEAN, THERE'S CERTAIN DEPARTMENTS WHERE IT HAPPENS MORE FREQUENTLY.
SO THAT PROCESS IS WORKING, UH, WORKING WELL.
NOW DOES ANY OTHER COMMITTEE MEMBER HAVE A QUESTION? HEARING YES, JUDY? NO.
NOT SEEING ANY OTHER QUESTIONS FROM ANY OTHER COMMITTEE MEMBERS? THANK YOU VERY MUCH.
AGAIN, WE NEED TO ACCEPT THIS REPORT.
I'D ENTERTAIN A MOTION FOR THE COMMITTEE TO ACCEPT IT.
[00:55:01]
PASSED.[Staff Briefing ]
ITEM WE HAVE IS ITEM NUMBER 10.THIS IS A STAFF BRIEFING, UH, ON THE UPDATE ON A OUTSTANDING MANAGEMENT ACTION PLAN, UH, FOR AUDITS.
AND SO KEVIN'S GONNA KIND OF BRING US UP TO DATE.
AND SO ONE THING THAT WE STARTED DOING, UH, THE LATTER PART OF LAST YEAR WAS, UH, IN, IN THE PAST WE WOULD DO FOLLOW UP AUDITS OF SPECIFIC AUDITS.
IF THEY WERE SIGNIFICANT FINDINGS OR HIGH PROFILE, WE WOULD DO A FOLLOW UP ON THAT SPECIFIC AUDITS.
WHAT WE STARTED DOING MID LAST YEAR IS EVERY RECOMMENDATION THAT WE ISSUE, WE'RE GONNA COME BACK AND DO A, A, A FOLLOW UP ON IT.
AND WE COME TO THIS COMMITTEE GENERALLY ON A QUALITY BASIS JUST FOR AN UPDATE.
SO THE, THE CHART THAT YOU HAVE IN FRONT OF YOU, IT'S, UH, NOTHING FANCY BUT BASICALLY COLOR CODED.
THE FIRST COLORED, UH, COLUMN THERE, THAT'S WHAT MANAGEMENT HAS TOLD US THAT THEY'VE COMPLETED IT, THEY'RE BEHIND SCHEDULE, IT'S ON SCHEDULE.
THE SECOND COLUMN WHERE IT SAYS AUDIT VERIFICATION, THAT'S WHAT WE HAVE DONE.
UH, SO WE VERIFIED IT WITHOUT EXCEPTION.
AND BASICALLY BLUES AND GREENS ARE GOOD.
UH, YELLOWS AND, AND REDS ON THIS CHARTER ARE NOT SO GOOD.
BUT YOU CAN SEE JUST AS AN EXAMPLE, THAT NUMBER TWO ITEM THERE, UH, WHERE IT'S MANAGEMENT ASSERTS THAT THEY HAVE COMPLETED IT, VERIFICATION PENDING.
WE HAVE NOT HAD THE TIME, BUT IT'S ON OUR SCHEDULE TO GO AND VALIDATE THAT ONE.
UH, THERE'S OTHERS WHERE YOU'LL SEE THAT, UH, THEY HAVE, UH, THEIR BEHIND SCHEDULE ON SOME STUFF.
AND AGAIN, WE'RE WAITING TO SEE THOSE, BUT Y'ALL HAVE THESE CHARGES, THREE PAGES.
MOST OF IT'S BLUE, MOST FOR THE MOST PART.
WE ARE ON TRACK ON THOSE WHERE THERE ARE BEHIND SCHEDULE.
THERE'S, THERE'S GENERALLY GOOD REASONS.
IT'S NOT JUST BECAUSE THEY'RE NOT DOING IT.
UH, SOMETIMES IT MAY REQUIRE A COUNCIL ACTION OR ADDITIONAL WORK OR COORDINATION WITH OTHER DEPARTMENTS, WHICH TAKES MORE TIME THAN THEY EXPECTED.
BUT OVERALL, I WOULD SAY THAT, UH, MANAGEMENT IS RESPONSIVE.
THEY ARE WORKING TOWARD RESOLVING AND IMPLEMENTING RECOMMENDATIONS AND, UH, WHERE THEY'RE NOT, WE'RE, WE'RE WORKING WITH THEM AND, UH, ARE COMFORTABLE WITH THE REASONING BEHIND IT.
AND IT'S JUST NOT, YOU KNOW, FOR NO GOOD REASON.
SO I SEE LIKE FOUR PAGES OF RECOMMENDATIONS BOND AND VAST MAJORITY OF 'EM ARE BLUE AND WE'RE GOOD.
THEN, AS YOU KNOW, ALL THESE THAT ARE ALL BLUE, NEXT MONTH OR NEXT THEY'RE GONNA FALL OFF AND THEN WE'LL HAVE ANOTHER BATCH.
WE'VE ISSUED QUITE A FEW RE REPORTS IN THE FOURTH QUARTER, WHICH ARE BEING ADDED NOW, AND THAT'LL BE ON THE APRIL, UH, PRESENTATION THAT WE MAKE.
IS YOUR STAFF BACK UP TO ITS NORMAL STAFF LEVEL.
WE HAVE ONE VACANCY RIGHT NOW, AND WE'RE FIXING THE POST, UH, FOR THAT ONE AGAIN.
BUT WE'VE, UH, WE'RE UP TO, YOU KNOW, ONE VACANCY THAT'S, THAT'S NORMAL.
UH, JUST WITH NORMAL TURNOVER.
BUT WE, YEAH, WE WENT THROUGH SOME ROUGH TIMES, BUT WE'RE, WE'RE IN A GOOD SPOT.
ANY OTHER COMMITTEE MEMBERS HAVE A QUESTION? NO, HEARING NONE.
WE ACCEPT, UH, THAT, UH, IT'S JUST A BRIEFING, SO THANK YOU VERY MUCH, KEVIN.
THE LAST ITEM WE MAY HAVE, I'M NOT SURE, DO WE HAVE AN EXECUTIVE SESSION WE SHOULD HAVE ON THIS ITEM? NO, I THINK WE'VE COVERED IT ALREADY.
YEAH, WE DO NOT HAVE AN EXECUTIVE SESSION.
[Consideration of items for future meetings ]
IS THERE ANY COMMITTEE MEMBER THAT WANTS ANYTHING TO BE CONSIDERED IN THE FUTURE IN THE WAY OF, UH, HIGH PROFILE CONTRACTS OR, UH, FUTURE ITEM CONSIDERATIONS? YES, COUNSEL.I DON'T KNOW THAT THAT, THAT, UH, IT NEEDS TO GO TO THIS LEVEL, BUT I'M REALLY, YOU KNOW, WE TALKED ABOUT, UM, I DON'T KNOW WHAT, WHAT IT WAS NOT, IT WASN'T ASSET TERMINATION, BUT, UM, ASSETS, ASSET DISPOSAL PROCESS.
I'M INTERESTED IN IT, NOT NECESSARILY THAT IT HAS TO COME TO THIS COMMITTEE, BUT LEARNING ABOUT THE ASSET DISPOSAL PROCESS FOR THE LIBRARIES.
UM, YOU KNOW, WE HAVE PEOPLE THAT COME TO US AND SAY, WE WANT A LIBRARY AND MAYBE WE CAN'T JUSTIFY BUILDING A LIBRARY IN THEIR NEIGHBORHOOD OR THEIR COMMUNITY, BUT MAYBE THEY HAVE A, A MULTI-GENERATIONAL, UH, CENTER OR, OR SENIOR CENTER THERE.
AND I UNDERSTAND THAT EVERY YEAR OUR LIBRARIES, UM, DISPOSE IN SOME WAY OF THEIR BOOKS.
BUT THERE'S A REAL, YOU KNOW, THERE'S A LOT OF POLICIES AROUND THAT.
AND I'M TRYING TO FIGURE OUT HOW DO, HOW DO WE GET THOSE BOOKS AND JUST GO PUT SOME BOOKSHELVES UP, YOU KNOW, AT A SENIOR CENTER, PUT SOME BOOKSHELVES UP AT A MULTI-GENERATION CENTER WHERE PEOPLE ARE SAYING, YOU KNOW, PEOPLE USED TO HAVE, WE USED TO HAVE A MOBILE LIBRARY.
AND SO WHERE ARE THESE BOOKS GOING? WHY, WHY IS IT SO DIFFICULT FOR US TO JUST GO GET THESE BOOKS THAT ARE BEING DISPOSED OF BY THE LIBRARIES AND, AND OFFERING 'EM TO PEOPLE IN OUR COMMUNITIES WHO ARE ASKING FOR THEM? SO COUNCIL, MAYBE ON THAT ONE, I WOULD SUGGEST MAYBE WE COULD TAKE THAT ONE OFFLINE.
THAT'S WHAT I'M, I'M PERFECTLY FINE.
DAVID, KAREN, AND I'LL COME VISIT WITH YOU AND ABSOLUTELY.
WE'LL TALK SOME MORE ABOUT THAT.
OKAY, CHAIR, CAN I ADD JUST ONE OTHER ITEM? WE'RE GONNA BE REACHING OUT TO EACH OF YOU, UM, TO LOOK AT THE SCHEDULE FOR THE AUDIT COMMITTEE GOING FORWARD.
UM, I, I BELIEVE, UH, COUNCILMAN BRAVO MAY HAVE A CONFLICT, UH, GOING FORWARD.
SO WE'RE GONNA WORK ON JUST FINDING ANOTHER, SOME OPTIONS FOR TIMES THAT MIGHT, THAT WOULD MAYBE WORK.
[01:00:01]
COME BACK WITH THAT.YEAH, JUST TALK WITH ALL OUR COMMITTEE MEMBERS, SEE IF WE CAN FIND AN ALTERNATIVE.
THANK YOU COUNCILMAN FOR MAKING IT TODAY.
I THINK THAT CONCLUDES OUR MEETING MEETING'S ADJOURNED.