Dec 06, 2023 City Council B Session

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>> MAYOR NIRENBERG: GOOD AFTERNOON, EVERYBODY. WELCOME TO OUR CITY COUNCIL B SESSION. WE HAVE ONE ITEM ON THE AGENDA TODAY, 2:06 P.M.

ON THE SIXTH DAY OF DECEMBER, 2023. WE'LL CALL OUR MEETING TO ORDER. MADAM CLERK, COULD YOU READ THE ROLL?

>> CLERK:

[ ITEMS  ]

WE HAVE ONE ITEM ON THE AGENDA. I'LL TURN US OVER TO CITY

MANAGER ERIK WALSH TO GET US STARTED. >> WALSH: THANK YOU, MAYOR, THE ONE ITEM WE HAVE ON THE AGENDA THIS AFTERNOON IS A BRIEFING ON THE RECOMMENDED CHANGES AND AMENDMENTS TO OUR SBEDA ORDINANCE BASED ON THE FINDINGS OF OUR 2023 SBEDA DISPARITY STUDY THAT WAS SUBMITTED TO THE COUNCIL EARLIER THIS YEAR AND ADOPTED IN AUGUST.

IN OCTOBER AND NOVEMBER OF THIS YEAR, THE ECONOMIC DEVELOPMENT DEPARTMENT CONDUCTED A NUMBER OF PUBLIC ENGAGEMENT CAMPAIGNS IN ORDER TO GET FEEDBACK FROM STAKEHOLDERS AND BUSINESSES.

THE RECOMMENDATIONS THAT YOU'LL SEE TODAY INCORPORATE THAT FEEDBACK OF THE STAKEHOLDERS, THE FIENLDINGS OF THE DISPARITY STUDY THAT WAS CONDUCTED BY COLETTE HOLT AND ASSOCIATES, AS WELL AS SOME ADDITIONAL STAFF RESEARCH THAT WAS TALKED ABOUT AT OUR EARLIER PRESENTATION WITH THE COUNCIL. SO AFTER TODAY'S BRIEFING AND FURTHER CONVERSATION FROM THE COUNCIL, WE WILL BE BRINGING THIS ITEM TO COUNCIL DURING NEXT WEEK'S A SESSION IN ORDER TO UPDATE AND ENACT THE LATEST SBEDA ORDINANCE GOING FORWARD THAT WILL GO INTO EFFECT ON APRIL 1ST OF 2024, SO WE STILL HAVE SOME TIME. AND I'M GOING TO -- MICHAEL SINDON IS GOING TO GIVE THE PRESENTATION, SO I'LL HAND IT OVER TO HIM TO KICK US OFF.

>> GOOD AFTERNOON, MAYOR AND CITY COUNCIL. AGAIN, MY NAME IS MICHAEL SINDON, I'M AN ADMINISTRATOR WITH THE CITY OF SAN ANTONIO'S ECONOMIC DEVELOPMENT DEPARTMENT. THE AMENDMENTS WE OR GOING TO COVER TODAY FOR THE SBEDA ORDINANCE THAT YOU ADOPTED BACK IN AUGUST OF THIS YEAR. MANY OF THE RECOMMENDATIONS WE'RE GOING TO COVER TODAY COME STRAIGHT FROM THAT STUDY AND THE RECOMMENDATION SECTION. FIRST WE'RE GOING TO COVER A LITTLE BIT OF THE SBEDA PROGRAM HISTORY AND A QUICK RECOLLECTION OF WHAT THE 2023 SBEDA DISPARITY STUDY COVERED. AS Y'ALL KNOW AND ARE AWARE OF THE CITY HAS AN ORDINANCE TO PROMOTE THE USE OF SMALL AND WOMEN-OWNED MINORITY BUSINESSES. THE INITIAL ORDINANCE WAS ADOPTED BACK IN 1992, HOWEVER AS YOU KNOW, THAT'S CLEARLY NOT THE PROGRAM THAT WE OPERATE TODAY. THERE WERE NOTABLE AMENDMENTS IN 2010 AND 2016 TO CREATE THE PROGRAM THAT WE OPERATE NOW.

THIS NEXT SLIDE IS JUST A QUICK HISTORY OF HOW FAR WE'VE COME SINCE THAT PROGRAM WAS ADOPTED BACK IN '92. WE STARTED AT 10%, AND WE CLEARLY NEEDED TO IMPROVE. YOU'LL SEE DISPARITY STUDY YEAR OVER YEAR WE HAVE IMPROVED AND THE LATEST ONE CAME IN AT 53% OF OUR PAYMENTS TO WOMEN AND MINORITY OWNED BUSINESSES.

THIS NEXT SLIDE SHOWS A REALLY GOOD APPLES TO APPLES COMPARISON OF OUR PROGRAM AS COMPARED TO OTHER TEXAS CITIES. BASICALLY, MINORITY/WOMEN OAFED BUSINESS AVAILABILITY VARIES BY COMMUNITY.

AND AS YOU'LL SEE, ONLY TWO CITIES IN TEXAS THAT WE STUDIED EVEN ACHIEVE THAT 100% PARITY MARK, US AND THE CITY OF AUSTIN, AND AS YOU CAN SEE ON HERE, WE'RE ABOUT 100 PERCENTAGE POINTS ABOVE THEM IN THAT REGARD.

AND THEN AS FOR THE ACTUAL DISPARITY STUDY THAT YOU ALL ADOPTED BACK IN AUGUST, THIS IS A QUICK RECAP OF THAT. AS A REMINDER, THE SUPREME COURT LAYS OUT RULES ANY TIME RACE AND GENDER IS TAKEN INTO ACCOUNT WITH CONTRACT PROGRAM AND WE'RE SUBJECT TO STRICT SCRUTINY.

YOU HAVE TO PASS TWO TESTS IS PROVING THEIR'S DISPARITY, PROVING THERE'S A NEED TO HAVE A PROGRAM LIKE THIS. BACK IN AUGUST OF THIS YEAR, WE DID PROVE THAT A PROGRAM NEEDS TO CONTINUE, BUT THIS IS THE SECOND PHASE TO IT. YOU HAVE TO NARROWLY TAILOR THE PROGRAM TO THE STUDY FINDINGS AND WE'LL BE SHOWING YOU THAT TODAY.

AS A QUICK RECOLLECTIONS, THE FINDINGS CAME BACK AND SAID THIS SBEDA PROGRAM HAS BEEN EFFECTIVE IN INCREASING OPPORTUNITIES FOR MINORITY AND WOMEN-OWNED BUSINESSES HOWEVER THEY WEREN'T SPREAD EVENLY

[00:05:03]

WHAT I'LL DO IS I'LL KIND OF DRAW YOUR EYES TO THAT BOTTOM ROW WHICH IS M/WBE, THAT'S MINORITY AND WOMEN-OWNED BUSINESSES AG GATED TOGETHER. THEY HAVE A 25% IN OUR MARKETPLACE, BASED ON THE TYPES OF STUFF WE BUY, THE GOODS AND SERVICES AND WE PAID THEM ABOUT 53% OF OUR DOLLARS DURING THE STUDY PERIOD. SO WE EXCEEDED THE GOAL BY NEARLY 30%. HOWEVER YOU CAN ALSO SEE SOME AREAS WHERE WE CAN IMPROVE, WITH AFRICAN-AMERICAN, ASIAN AND NATIVE AMERICAN BUSINESSES, SO DEFINITELY SOMETHING TO LOOK FORWARD TO IN CORRECTING BUT DEFINITELY PROUD OF THE 30% EXCEEDING OF THE GOAL HOLISTICALLY.

SO NOW WE'RE GOING TO ACTUALLY WET INTO -- OF WHAT DROVE US IN THIS AND THE GOALS. SO NUMBER ONE, WHILE THE M/WBE GOAL WAS EXCEEDED BY 30%, AS I MENTION AND I SHOWED YOU EARLIER, THERE ARE SOME GAPS TO COVER. SO ULTIMATELY COLETTE AND THE STUDY RECOMMENDED THAT WE CAN CONTINUE THE SBEDA PROGRAM MOVING FORWARD. THAT BEING SAID, COLET HAD RECOMMENDED SOME STRATEGIC ADJUSTMENTS AS WELL AS AN OUTSIDE LEGAL COUNCIL THAT REVIEWED HER METHODOLOGY AND FINDINGS. THEY ASKED US TO LOOK AT PROGRAM ELIGIBILITY REQUIREMENTS AS WELL AS OUR TOOLS AND PROCESSES MOVING FORWARD. AND LAST OF COURSE, THIS IS SOMETHING WE'VE HEARD OFTEN, NOT JUST FOR SBEDA BUT GENERAL IN PROCUREMENT WORLD IS TO MAKE THE PROGRAM SIMPLER. IT'S COMPLICATED AND THAT SOMETIMES CAN MAKE FOLKS NOT TO WANT TO PARTICIPATE.

WE WANT TO LOOK AT MAKING IT EASIER FOR FOLKS TO ACCESS AND HELP THEM MOVING FORWARD. THE FIRST SET OF AMENDMENTS I WANT TO TALK ABOUT ARE REGARDING CURRENTLY TO BE ELIGIBLE, YOU HAVE TO MEET TWO DIFFERENT TYPES OF CRITERIA. THE FIRST IS YOU HAVE TO BE CERTIFIED AS A SMALL BUSINESS AND THE SECOND ONE IS YOU HAVE TO BE LOCATED IN THE SAN ANTONIO METROPOLITAN AREA.

WE'RE ACTUALLY GOING TO BE RECOMMENDING A CHANGE FOR EACH OF THOSE ELIGIBILITY CRITERIA. SO I'LL START FIRST WITH CERTIFICATION.

RIGHT NOW TO BE CERTIFIED AS A SMALL BUSINESS, A FIRM -- AUDIO] -- TO A CERTIFYING AGENCY, AND THAT CERTIFYING AGENCY WILL THEN DETERMINE IF THEY ARE BELOW THE SMALL BUSINESS ADMINISTRATION FEDERAL SIZE STANDARDS. THE FEDERAL GOVERNMENT SETS SIZE STANDARDS FOR EACH AND EVERY INDUSTRY, ABOUT 9,000 OF THEM. SO AS LONG AS THEY MEET THAT CRITERIA AND UNDER THAT THRESHOLD, THEY CAN GET CERTIFIED.

WE WANT TO GO A STEP FURTHER. WE WANT TO ADD PERSONAL NET WORTH CRITERIA AS PART OF THE CERTIFICATION PROCESS, AND THIS ENSURE THAT'S THE SBEDA BENEFITS GO TO THOSE ECONOMICALLY DISADVANTAGED BUSINESS OWN DERS AND TRULY NEED BENEFITS FROM THE PROGRAM.

THINK OF THAT AS THE SBEDA PROGRAM AT THE FEDERAL LEVEL, AND THEY HAVE SET A LIMIT OF 1.32 MILLION. COLETTE HOLT HAD RECOMMENDED WE ADOPT THIS VERY SIMILAR STANDARD MOVING FORWARD, AND SO WE'RE PLANNING TO DO THAT. NEXT UP REGARDING ELIGIBILITY WE WANT TO DISCUSS IS REGARDING THAT LOCATION REQUIREMENT I TALKED ABOUT A SECOND AGO. FOLKS HAVE TO BE EITHER HEADQUARTERED OR HAVE A SIGNIFICANT BUSINESS PRESENCE IN THE SAN ANTONIO METROPOLITAN STATISTICAL AREA. HEADQUARTERS, PRETTY STEFL EXPLANATORY BUT SIGNIFICANT BUSINESS PRESENCE MEANS YOUR HEADQUARTER IS SOMEWHERE ELSE, MAYBE IN THE STATE OF TEXAS, MAYBE OUTSIDE OF THE STATE OF TEXAS, BUT YOU HAVE AN OFFICE HERE, IT'S BEEN HERE FOR ONE YEAR, AND 20% OF YOUR EMPLOYEES WORK OUT OF THAT SPACE. BOTH OF THOSE FIRMS GET EQUAL BENEFITS FROM THE SBEDA PROGRAM.

NOW DO NOTE, ONLY ABOUT 3.8% OF THOSE FIRMS THAT QUALIFY UNDER THAT PROVISION EXIST IN THE REGISTRY. AND AFTER LISTENING TO EXTENSIVE COMMUNITY FEEDBACK OVER THE YEARS WE'RE RECOMMENDING WE ELIMINATE THAT PROVISION. WE DID A SURVEY IN 2020 AND 69% OF THOSE RESPONSES CAME BACK AND SAID, YES, THOSE BENEFITS SHOULD, IN FACT, STAY AND ONLY GO TO FIRMS THAT ARE HEADQUARTERS IN OUR MSA.

SOME OF THESE SLIDES WILL HAVE CHARTS TRYING TO HELP GUIDE YOU IN TERMS OF HOW WE THINK IT COULD IMPACT UTILIZATION WITH THESE CHANGES.

AND THIS IS ONE OF THOSE. SO WE TOOK A THREE-YEAR ANNUAL AVERAGE LOOKING AT FISCAL YEAR '21 THROUGH FISCAL YEAR '23 AND WE WANTED TO KNOW HOW MANY TIMES DID THE CITY PAY WHO QUALIFY UNDER THIS SIGNIFICANT BUSINESS PROVISION ANNUALLY, AND WE FOUND IT ABOUT 17 OF THEM. THEY GET ABOUT 8.9 MILLION PER YEAR.

WE WANTED TO KNOW WHAT WOULD HAPPEN TO THOSE FIRM IFS WE WERE TO REMOVE THOSE PROVISIONS. WHAT WE FOUND IS 50% OF THAT 8.9 MILLION WOULD STILL STICK WITH THESE SGNIFICANT BUSINESS PRESENCE FIRMS, THEY WOULDN'T BE ENTIRELY CUT OUT OF THE PROCESS, THAT'S BECAUSE THEY ARE

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SO SBEDA DOESN'T HAVE AN OUTCOME THERE. WE DID FIND THAT ALMOST 40% OF THAT 8.9 MILLION WOULD GO TO FIRMS THAT ARE HEADQUARTERED HERE AND WOULD JUMP THAT LINE AND NOW GET IN THE GAME TO GET SOME OF THOSE DOLLARS WHICH IS WHAT THE COMMUNITY'S REQUESTING. NOW WE'RE GOING TO COVER CONTRACT-BY-CONTRACT GOALSETING. SO THE ORDINANCE RIGHT NOW HAS NINE TOOLS THAT ARE APPLIED IN BOTH A RACE AND GENDER NEUTRAL AND RACE AND GENDER CONSCIENCE MANNER. THAT MEANS THEY GO TO ANY ELIGIBLE SMALL BUSINESS. IF IT'S RACE AND GENDER CONSCIENCE, IT MEANS YOU HAVE TO BE AN ELIGIBLE SMALL AND CERTIFIED OR MINORITY OR WOMEN.

WHAT A LOT OF FOLKS DON'T REALIZE IS WHILE THE ECONOMIC DEVELOPMENT DEPARTMENT OVERSEES THE SBEDA ORDINANCE WE ACTUALLY DON'T APPLY THE TOOLS TO SOLICITATIONS. WE RECOMMEND THEN AND IT GOES INFRONT OF AN ENTIRE GOAL-SETTING COMMITTEE. THAT IS LARGELY MADE UP OF CITY STAFF BUT THERE ARE TWO CITIZENS THAT CAN VOTE ON THINGS OVER $3 MILLION.

WE'RE RECOMMENDING TO ELIMINATE THE GOAL-SETTING COMMITTEE AND INSTEAD DE ZAVALA GNATH THAT AUTHORITY TO THE ECONOMIC DEVELOPMENT SO WE WOULD BE APPLYING THEM MOVING FORWARD. TRYING TO UNDERSTAND THE IMPACT OF THAT, WE LOOK TO THE CHART YOU CAN SEE ON THE RIGHT-HAND SIDE WHICH SHOWS HOW MANY TIMES THE GOAL-SETTING COMMITTEE EVEN ADJUSTED OR CHANGED WHAT THE ECONOMIC DEVELOPMENT DEPARTMENT RECOMMENDED OVER THE LAST THREE FISCAL YEARS. SO YOU'LL SEE OVER 550 SOLICITATIONS CAME THROUGH OUR OFFICE, AND NEVER ONCE DID THE GOAL-SETTING COMMITTEE ACTUALLY CHANGE THE TOOL WE WANTED TO RECOMMEND ON A SOLICITATION. THEY ALSO APPROVED THAT PROCESS.

BUT SEVEN TIMES, OR 1.3% OF THE TIME THEY DID CHANGE THE TOOL WEIGHT BUT IT WAS VERY INFREQUENT. WHEN I SAY TOOL WEIGHT, WE CAN APPLY CONTRACTING GOALS OF 30%. THEY MAY COME BACK AND SAY, OH, IT SHOULD HAVE BEEN 20%. BUT THAT'S VERY RARE, AND THAT'S BECAUSE IT'S A VERY DATA-DRIVEN PROCESS.

THIS CHANGE WOULD ALLOW STAFF TO GO OUT NOW INSTEAD OF FOCUSING ON THIS GOAL-SETTING COMMITTEE PROCESS, AND DO OUTREACH TO THE SMALL MINORITY/WOMEN-OWNED BUSINESS COMMUNITY IN WAYS WE HAVEN'T BEEN ABLE TO DO BEFORE. THIS WOULD ALLOW US TO START NOTIFYING VENDORS WHO MAY NOT BE REGISTERED WITH US BUT WE CAN CLEARLY GOOGLE THEM AND SEE THEY EXIST IN OUR MARKETPLACE TO GET READY FOR A SOLICITATION AND, OF COURSE, OVERSIGHT WILL NOT CEASE WITH THIS PROCESS.

YOU ALL AS CITY COUNCIL AND MAYOR HAVE AN APPOINTEE TO OUR SBEDA COMMITTEE WHO MONITORS OUR PROCESS ON A MONTHLY AND ANNUAL BASIS IN WHERE WE ARE IN MEETING THE GOALS AND IMPLEMENTING THE SBEDA PROGRAM.

NEXT WE'RE GOING TO GO INTO THE SOLICITATION TOOLS.

AND WHAT WE'RE GOING TO START WITH FIRST ARE SOME TOOLS WE WANT TO ADD TO THE TOOLBOX. AND THIS IS REALLY IN REGARD TO THOSE CONTRACTING PROGRAM I TALKED ABOUT EARLIER WHERE UP TO 40% OF A PROJECT HAS TO GO TO A SMALL BUSINESS OR A MINORITY AND WOMEN-OWNED BUSINESS. WHAT WE REALIZED IS ONE KEY GROUP WAS KIND OF MISSING FROM THAT TOOLBOX AND THAT'S EMERGING SMALL BUSINESSES.

THESE ARE FOLKS THAT ARE 1/4 THE SIZE OF A SMALL BUSINESS AS DESIGNATED BY THE SBA. IF A SMALL BUSINESS ADMINISTRATION SETS A 1 MILLION-DOLLAR SIZE STANDARD FOR A CERTAIN INDUSTRY, EMERGING SMALL BUSINESSES WOULD ONLY QUALIFY IF THEY'RE AT 250,000 OR LESS IN GROSS RELATES. HAVING THIS TOOL IN OUR TOOLBOX, Y'ALL SEE THINGS WE AWARD THAT ARE 100,000, MAYBE EVEN LESS THAN THAT SOMETIME, THIS WOULD ALLOW US TO SET GOALS ON THE PROJECTS FOR THESE BUSINESSES SO THAT THEY CAN START PARTICIPATING ON CITY PROJECTS, UNDERSTAND THAT PROCESS, GROW AND THEN OVER TIME, HOPEFULLY ARE BIDDING ON LARGER PROJECTS AS WE CONTINUE TO BUILD THE PIPELINE OF FIRMS WHO PARTICIPATE WITH US. THERE ARE ALSO SOME TOOLS WE'RE RECOMMENDING TO ELIMINATE OR DIAL BACK ON, AND THAT'S REALLY A RESPONSE TO THE DATA AND THE DISPARITY STUDY AND THE GUIDING CASE LAW TO MAKE SURE WE STRENGTHEN OUR PROGRAM FROM A LEGAL PERSPECTIVE. THE FIRST ONE IS THE ELIMINATION OF MINORITY AND WOMEN-OWNED PRIME EVALUATION POINTS.

THIS ISN'T THE ELIMINATION OF THE RACE NEUTRAL, THE SMALL BUSINESS PRIME EVALUATION POINTS, JUST THOSE -- AND WE ARE NOT RECOMMENDING ANY OTHER RACE CONSCIOUS TOOL BE ELIMINATED FROM THE TOOLKIT, BUT THIS ONE IN PARTICULAR WE ARE, AND THAT'S THE DIRECT RECOMMENDATION FROM COLETTE HOLT. SO AS A RECOLLECTION, THESE POINTS -- AUDIO] -- THAT'S ONLY ABOUT A QUARTER OR 25% OF WHAT COMES THROUGH OUR OFFICE. THE REST ARE LOW BID AND WE TYPICALLY APPLY CONTRACTING GOALS ON THOSE. BUT WE WANTED TO UNDERSTAND HOW THIS CHANGE COULD IMPACT THE MINORITY/WOMEN-OWNED BUSINESS COMMUNITY ON CITY PROJECTS. SO WITH THAT WE DID ANOTHER EXERCISE, WE LOOKED A A DATA SET BETWEEN 2017 AND 2023, NEARLY ABOUT SEVEN YEARS, AND WE LOOKED AT ALL THE CONTRACTS YOU ALL AWARDED AND EACH OF THEM THAT ARE DISCRETIONARY HAVE AS Y'ALL KNOW AN EVALUATION MATRIX TO SEE HOW THEY SCORED AND HOW THEY FAIRED AGAINST OTHER BIDDERS. DURING THAT SEVEN-YEAR TIME PERIOD, WE FOUND THAT 153 MINORITY/WOMEN-OWNED BUSINESSES WON PROJECTS WHEN THESE MINORITY AND WOMEN-OWNED BUSINESS POINTS WERE APPLIED.

WE THEN DID A CONVERSION EXERCISE, WHAT WOULD HAPPEN IF WE TOOK THESE MINORITY AND WOMEN-OWNED PRIME PREFERENCE POINTS AND CONVERTED THEM ALL TO

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WE FOUND THAT 148 OF THE 153 CONTRACT AWARDS WOULD STILL GO TO MINORITY AND WOMEN-OWNED BUSINESSES, AND FURTHER, THEY RETAINED 97% OF THE AWARD VALUE. THE FIVE THEY WOULD HAVE LOST WOULD HAVE STILL STAYED LOCAL WITH LOCAL SMALL BUSINESSES AND IN OUR ANALYSIS, NO LARGE BUSINESS WOULD HAVE JUMPED THE LINE TO GET IN AS A RESULT OF THIS CHANGE. THERE ARE TWO OTHER MORE ADMINISTRATIVE-BASED CHANGES WE WANT TO MAKE, AND ELIMINATE 2G OTHER TOOLS.

THESE ARE TOOLS THAT HAVEN'T CONTRIBUTED A PENNY TO MINORITY/WOMEN-OWNED SINCE 2011 SO WE WANT TO ELIMINATE THEM.

THE FIRST ONE IS A REMOVAL OF A CONTRACT TERM INCENTIVE BASE TOOL. WE'VE SEEN THEY'RE BEEN HISTORICALLY INEFFECTIVE. THESE TOOLS ARE TRYING TO ENCOURAGE A LARGE BUSINESS TO DO A CERTAIN ACTIVITY WITH A SMALL BUSINESS, AND TO DO THAT THEY GET CERTAIN CONTRACT INCENTIVE, AND THE PRIMARY ONE ARE PROJECTS WHERE YOU AWARD A FIVE-YEAR CONTRACT AND TWO ONE-YEAR RENEWALS.

TO DATE, WHILE WE'VE APPLIED THIS TOOL MULTIPLE TIMES, NEVER HAS A LARGE BUSINESS CONSIDERED THIS AN INCENTIVE ENOUGH TO ACTUALLY MOVE FORWARD AND UTILIZE THE SMALL BUSINESS AS A RESULT.

SO WE PIVOTED AWAY FROM THIS TOOL, AND INSTEAD USE THINGS THAT WE KNOW ARE MORE EFFECTIVE AND ACTUALLY DO DRIVE UTILIZATION EACH AND EVERY TIME. THE OTHER TOOL WE WANT TO REMOVE IS OUR HUB ZONE TOOL. HUB ZONES, AS YOU KNOW, ARE DESIGNATED BY THE FEDERAL GOVERNMENT TO SPUR ECONOMIC DEVELOPMENT ACTIVITY.

THE ISSUE WITH US ON THIS TOOL IS THAT THESE TERMS ALSO HAVE TO BE SBEDA ELIGIBLE AND THEY ALSO HAVE TO BE SELLING THE GOODS AND SERVICES WE BUY. SINCE 2011, WE HAVE NOT HAD THE FIRM AVAILABILITY TO SET A TOOL FOR THESE BUSINESSES ON OUR PROJECTS.

YOU TYPICALLY HAVE TO HAVE AT LEAST THREE OR MORE AS REQUIRED BY CASE LAW FOR IT NOT TO BE CONSIDERED A SET ASIDE. SO, AGAIN, NONE OF THESE TOOLS HAVE CONTRIBUTED ANY UTILIZATION TO MINORITY/WOMEN-OWNED BUSINESSES AND WE KNOW WHAT DOES WORK AND WE WANT TO FOCUS ON THAT AS WE MOVE FORWARD. LAST WE'RE GOING TO COVER SOME SUPPLEMENTAL AMENDMENTS. THIS IS THE KIND OF CATCH-ALL OF THE LAST FEW AMENDMENTS I WANT TO DISCUSS WITH YOU ALL TODAY AND THE FIRST ONE IS REGARDING SMALL MINORITY AND WOMEN-OWNED BUSINESSES ON CONTRACTING GOALS. SO RIGHT NOW IF WE SET, SAY, A 30% AND THE PRIME CONTRACTOR HAPPENS TO HAVE THOSE CERTIFICATION, THEY CAN SELF-PERFORM THEM, THEY DON'T HAVE TO GO OUT AND FIND SOMEBODY ELSE.

THAT WAS A KEY CHANGE IN 2016 REQUESTED BY THE SMALL BUSINESS COMMUNITY, BUT THAT PROVISION IS ONLY ALLOWED ON SOLICITED 10 MILLION OR LESS.

THE COMMUNITY'S ASKED US INSTEAD TO ALLOW THEM TO SELF-PERFORM ON ALL CITY PROJECTS, REGARDLESS OF VALUE, LET THEM MAKE THAT DECISION OF WHEN THEY ARE AT CAPACITY AND NEED TO FIND OTHER SUBCONTRACTORS TO FULFILL THE WORK ON THE PROJECTS, SO WE WANT TO ALLOW THAT ON ALL CITY PROJECTS MOVING FORWARD.

WE ALSO WANT TO ENCOURAGE MORE JOINT VENTURES. RIGHT NOW IF A LARGE BUSINESS PARTNERS WITH A SMALL BUSINESS AND CREATE AS JOINT VENTURE, NO MATTER HOW MUCH MONEY IS PAID, IT DOES NOT COUNT TOWARD THAT CONTRACTING GOAL. SO IN A WAY, IT'S ALMOST DISINCENTIVIZING THEM FROM FORMING ONE AND WE WANT TO ALLOW THAT GOING FORWARD.

SO AS LONG AS WE CAN PROVE THE DOLLARS GO TO THAT SMALL BUSINESS WE'LL COUNT THAT TOWARD THE GOAL. WE ALSO WANT TO HAVE AN ADJUSTMENT TO THE CONTRACTING GOAL WAIVER. AGAIN, ANY TIME A CONTRACTING GOAL IS SET BY LAW YOU HAVE TO ALLOW A FIRM TO SUBMIT A WAIVER. THIS IS IN CASE THE FIRMS COME BACK AND SAY I'M UNAVAILABLE IN THAT CAPACITY, WHATEVER THE CASE MAY BE.

OF COURSE, IT HAS TO BE PROVED UP THROUGH EXTENSIVE DOCUMENTATION, BUT COLETTE HAD RECOMMENDED WE ALLOWED SOME FLEXIBILITY INTO THIS PROCESS. TO GIVE YOU SOME SCALE ON THAT, RIGHT NOW WHEN WE GRADE WAIVERS, YOU GET A 70, YOU PASS. SOME OF THS SECTIONS YOU GET ALL OR NONE POINTS EVEN IF YOU DO 98 PERCENT OF THE EFFORT.

SHE'S SAYING MAYBE YOU SHOULD GIVE THEM HALF IN THAT CASE TO NOT BE SO STRICT TO REDUCE ANY KIND OF LEGAL LIABILITY. AND LAST WE WANT TO CONSOLIDATE OUR CURRENT DIVDIVERSITY ACTION ORDINANCE.

IT'S REALLY A TOOL WE HAVE THAT'S REALLY MARKETING BASED.

AND THE INTENT OF IT IS TO GET FOLKS KNOWLEDGEABLE OF CITY CONTRACTS AND KNOWLEDGEABLE OF SBEDA PROGRAM, AND WHEN THEY'RE READY, THAT'S WHEN SBEDA TAKES OVER. THIS PLAN TELLS US WHEN, HOW, WHERE TO MARKET, AND IT'S VERY, VERY PRESCRIPTIVE.

IF THINGS WE FIND ARE INEFFECTIVE, AS TECHNOLOGICAL CHANGES OCCUR, THINGS OF THAT NATURE, WE CAN'T REALLY ADAPT TO THAT AND WE HAVE TO STICK TO WHAT'S THERE. SO WHEN WE SHIFT THIS OVER TO THE SBEDA ORDINANCE, WHAT WE WANT TO DO IS HAVE CERTAIN DIRECTION WHERE STAFF HAS TO BE MORE MOBILE DRAFTING UP THINGS LIKE ANNUAL PLANS THAT GOES IN FRONT OF OUR SBEDA COMMITTEE WHERE THEY WILL GET TO REVIEW AND BLESS IT AND THEN WE CAN IMPLEMENT IT.

AND THEN WHAT DOESN'T WORK, PIVOT AND CHANGE NEXT YEAR.

THIS IS THE TIMELINE FOR AMENDMENTS ADOPTION AS I DISCUSSED EARLIER.

YOU ALL ADOPTED THE DISPARITY STUDY BACK IN AUGUST.

WE THEN FINALIZED AMENDMENTS IN SEPTEMBER. WE BRIEFED OUR SBEDA COMMITTEE IN OCTOBER AND RELEASED THEM, WE THEN CONDUCTED A PUBLIC

[00:20:01]

OF COURSE, YOU HEARD BOTH SIDES OF RHETORIC, YOU'VE GONE TOO FAR, YOU NEED TO SHUT THE PROGRAM DOWN, AND REGARDLESS OF DATA AND CASE LAW, YOU SHOULD CONTINUE. BUT MOST RODE THAT MIDDLE ROAD AND UNDERSTAND WHAT WE WERE DOING AND TAKING COLETTE'S GUIDANCE ON THIS.

THERE WERE A LOT OF POSITIVE RESPONSES REGARDING MOVING THE SIGNIFICANCE BUSINESS PRESENCE PROVISION. THERE WERE SOME MIXED RESULTS ON THE PERSONAL NET WORTH CRITERIA, NOT BECAUSE THEY DIDN'T LIKE IT OR NOT BECAUSE THEY DIDN'T WANT WEALTHIER INDIVIDUALS FROM TAKING A PART IN THIS PROGRAM, THEY DIDN'T WANT US TO SADDLE THEM WITH ADDITIONAL PAPERWORK. WE HAVE TO BE MINDFUL OF SOMETHING MORE LIKE AN ATTESTATION PROCESS THAT MAYBE HAS PENALTIES AND SANCTION IF FRAUD IS FOUND. THERE WERE POSITIVE RESPONSES WITH REMOVING THE GOAL-SETTING COMMITTEE AND RESPONSES WITH ALLOWING SMALL BUSINESSES SELF-PERFORM CONTRACTING GOALS ON PROJECTS GREATER THAN 10 MILLION. IF Y'ALL APPROVE THE AMENDMENT, NEXT WEEK I CANNOT FLIP THE SWITCH AND HAVE IT GO LIVE THE NEXT DAY.

THERE WILL BE A FEW THINGS THAT WE HAVE TO TAKE CARE OF, SUCH AS ADJUSTMENT OF FORMS, SOFTWARE CODING, THINGS OF THAT NATURE, SO WE PLAN TO HAVE THIS GOING LIVE ON APRIL 1ST OF 2024.

AND, OF COURSE, WE'LL BE COMMUNICATING THESE CHANGES WITH STAKEHOLDERS AS WELL. THIS LAST SLIDE IS A QUICK HIGHLIGHT, SBEDA'S A GREAT TOOL AND CLEARLY BEEN EFNLGTTIVE, BUT THERE'S MANY OTHER WAYS WE'RE TRYING TO ADDRESS THE ROOT ISSUES THAT ARE CAUSING A LOT OF THIS DISPARITIES, SUCH AS THE IMPLEMENTATION OF SUPPLY SA, WE'RE UNDERGOING A COSA PROCUREMENT MAPPING AND IMPROVEMENT PROCESS. THE MORE IT'S COMPLICATED, THE LESS PEOPLE PARTICIPATE. WE'RE DEVELOPING AN ACCESS TO CAPITAL PROGRAM TO HELP PEOPLE GET ON CONTRACTS, AS WELL AS MENTOR PROTEGE PROGRAM THAT HELPS BUSINESSES W THAT, THAT CONCLUDES MY PRESENTATION AND I'M HAPPY TO ANSWER ANY QUESTIONS ANYONE HAS.

>> MAYOR NIRENBERG: THANK YOU VERY MUCH, MICHAEL, FOR THE PRESENTATION.

YOU DO A GREAT JOB, MICHAEL ON THIS INCREDIBLY COMPLEX SUBJECT, AND THINK YOU'VE DONE A GREAT JOB OVER THE YEARS JUST DISTILLING ALL THE INFORMATION TO THE ESSENTIALS, SO APPRECIATE IT.

WE'VE BEEN BRIEFED A NUMBER OF TIMES ON THIS, INDIVIDUALLY BRIEFED.

WE'VE HAD COLETTE COME IN AND GIVE HER LEGAL PERSPECTIVE, WHICH I THINK IS VERY HELPFUL, SO I'M READY TO MOVE FORWARD WITH THE RECOMMENDATIONS. I THINK IT'S A STRONG PROPOSAL.

WE CONTINUE TO LEAD WITH POLICY AND MAKING SURE THAT THIS SMALL BUSINESS ENVIRONMENT IS CONDUCIVE TO LIFTING UP THOSE THAT HAVE MOST OPPORTUNITIES FOR GROWTH, PARTICULARLY IN THE DISADVANTAGED BUSINESS ENTERPRISE COMMUNITY AND SO GREAT WORK. LOOKING FORWARD TO HEARING THE CONVERSATION. WE'LL START WITH

COUNCILMEMBER CABELLO HAVRDA? >> HAVRDA: THANK YOU, MAYOR, AND THANK YOU SO MUCH FOR THE PRESENTATION.

I'M GOING TO ASK A LOT OF -- OR SOME CLARIFYING QUESTIONS MOSTLY.

IT JUST SEEMS TO ME ON THE FACE OF THIS THAT THE RECOMMENDATIONS ARE GOING IN THE WRONG DIRECTION. IT DOESN'T SEEM LIKE WE SHOULD BE ELIMINATING PROTECTIVE CLASSES, IT SEEMS THAT WE SHOULD BE ADDING TO THEM AT THIS POINT. IT'S NOT AN INSIGNIFICANT CHANGE.

AND ELIMINATING RACE CONSCIOUS RULES, TO ME, IS THE SAME AS ELIMINATING THE GUTS OF THE SBEDA STRUCTURE. AND I UNDERSTAND THAT THE ARGUMENT -- THE ARGUMENT ABOUT THE SUPREME COURT COMING IN AND GUTTING IT POTENTIALLY AND I JUST -- IN SOME WAYS THINK THAT WE'RE PREEMPTIVELY DOING THAT WORK FOR THEM. I TALKED TO -- ANECDOTAL. I DON'T GET THE SAME THAT MOST OF THEM WANT TO SEE THIS HAPPENING. SPECIFIC CONCERNS WERE I'M A WOMAN-OWNED SUB, I'M AFRAID THAT IF THESE ARE REMOVED, THAT I WON'T -- THEY WON'T NEED ME ANYMORE. MAYBE GO WITH ANOTHER, YOU KNOW, SUB FOR THAT SAME ISSUE. AND I UNDERSTAND THAT IT'S A POSSIBILITY THAT THE SUPREME COURT -- IT'S A PROBABILITY THAT THE SUPREME COURT WILL COME AND GUT IT, BUT I JUST -- I JUST -- LET ME ACTUALLY START WITH THAT ONE QUESTION. IF YOU'RE A WOMAN OR A MINORITY-OWNED SUB, HOW COULD THIS AFFECT YOUR -- POTENTIALLY YOUR CONTRACT?

>> SURE, SO I WANT TO MAKE THIS VERY CLEAR. WE ARE ONLY REMOVING THE RACE AND GENDER CONSCIENCE PRIME EVALUATION PREFERENCE POINTS. OTHER TOOLS WE KNOW ARE RACTING GOALS ARE THE

[00:25:03]

COLETTE SAID WE HAVE ENOUGH TO CONTINUE WITH THAT AND WE'RE GOING TO CONTINUE WITH THAT. WE, TOO, WERE CONCERNED WITH HOW THAT COULD IMPACT THE COMMUNITY. THAT'S WHY WE DID THE ANALYSIS WE SAW THERE AND THE CONVERSION EXERCISE REALLY SHOWED ME WITHIN THE SMALL BUSINESS WORLD, MINORITY AND WOMEN-OWNED WERE VERY SUCCESSFUL IN COMPETE COMPETING, AND IT

FURTHER PROTECTS THE -- CAVS >> HAVRDA: SO IT WOULDN'T

AFFECT SUBS AT ALL. >> WE WOULD STILL BE SETTING THOSE GOALS,

CORRECT. >> HAVRDA: OKAY. GOING BACK TO THE STUDY -- I THINK WE'VE RELIED VERY HEAVILY ON THE STUDY, AND I APPRECIATE THAT. I THINK THAT WE'RE SEEING IT MORE AS A TRIGGER, WHEN I THINK IT'S SUPPOSED TO BE MORE OF A GUIDE.

WHEN WE USE IT ALONG AS OTHER CONSIDERATIONS, I THINK THAT'S -- WE NEED TO LOOK AT IT MORE HOLISTICALLY. THE -- IF YOU ARE -- I MEAN, I MENTIONED THIS BEFORE, BUT ACCORDING TO THE STUDY -- AND I'M NOT GOING TO SAY IT THE EXACT SAME WAY YOU SAID IT, BUT WOMEN AND MINORITY-OWNED BUSINESSES IF THEY DIDN'T HAVE THIS -- THESE EXTRA POINTS THEY WOULD STILL BE JUST AS SUCCESSFUL, RIGHT? SO ONE THING I'VE ASKED YOU BEFORE IS ARE YOU TAKING INTO ACCOUNT HOW THEY GOT THERE, HOW THEY GOT TO BE THAT SUCCESSFUL WOMEN-EENED OR MINORITY-OWNED BUSINESSES BECAUSE IN SOME CASES, IT'S THESE POINT THAT'S GOT US THERE.

>> YES. REAL QUICK, WE DO USE THE STUDY VERY MUCH TO NARROWLY TAILOR THE PROGRAM TO THOSE STUDY FINDINGS.

THAT IS A LEGAL FINDING AND SOMETHING WE'VE DONE OVER THE YEARS.

THAT BEING SAID THERE ARE THINGS WE LOOK AT OUTSIDE THAT MAYBE AREN'T GUIDED BY THAT. WE CAN LISTEN TO COMMUNITY FEEDBACK ON THAT AND KIND OF ACT OUTSIDE OF THE DISPARITY STUDY.

THERE ARE THINGS WE DO SEPARATE AND APART BUT WE USE THAT AS OUR GUIDING PRINCIPLE. AS FOR THE POINTS THEMSELVES WE DID SOME ANALYSIS ON THIS AFTER YOU MADE THAT RECOMMENDATION, BECAUSE WE WANT TO UNDERSTAND THE IMPACTS AS WELL. WHAT WE FOUND WAS ALSO FAIRLY ENCOURAGING, ABOUT 35% OF THE BUSINESSES WHO WOULD HAVE STILL WON WERE NEW BIDDERS, MEANING THEY WEREN'T DRAGGING IN PAST EXPERIENCE OF ALREADY WINNING A CONTRACT, WHICH YOU WOULD ANTICIPATE A LOT OF THE FOLK WHOSE HAVE BEEN ON PROJECTS WOULD CONTINUE WINNING BEING THE MAJORITY, THAT BEING SAID THEY WEREN'T COMPLETELY CANCELING OUT THE NEWER FOLKS COMING

INTO THE PROCESS AND GETTING AN OPPORTUNITY. >> HAVRDA: SO THE VAST MAJORITY WERE BEING AFFECTED? IT WAS 35% THAT WERE --

>> SO 66% OF THOSE FIRMS IN THAT ANALYSIS I DID WERE FOLKS WHO WON A CONTRACT BEFORE. SO TO YOUR POINT, THEIR COMING FORWARD WITH PAST EXPERIENCE THAT MAYBE HELPED THEM IN OTHER AREAS, BUT WHAT I FOUND SOME OF THE NEWER PHONI -- 35 PERCENT. I DON'T THINK THAT'S GOOD ENOUGH.

IF THAT NUMBER WAS A LOT HIGHER, I WOULD THINK THAT YOU SOLVED FOR THAT, BUT I DON'T THINK THAT'S THE ANSWER. I DON'T THINK IT SOLVES THAT PROBLEM. SO I STILL HAVE THE SAME CONCERN.

I APPRECIATE YOU DOING THAT WORK, BUT I HAVE THE SAME CONCERN.

AND, YOU KNOW, I KNOW THAT Y'ALL HAVE DONE A GOOD WORK ON TRACKING AND GATHERING DATA. I DON'T SEE NECESSARILY SOME OF THOSE THINGS.

THAT'S ONE EXAMPLE, BUT I DON'T SEE SORT OF THE LONG -- THE LONGEVITY OF A BUSINESS. WE'VE TALKED A LOT IN HERE ABOUT LOCAL BUSINESSES AND LOCAL BUSINESSES IN THIS TOWN ARE A LOT OF WOMEN AND MINORITY-OWNED BUSINESSES. I DON'T WANT TO BELABOR IT. I THINK WE'RE GOING IN THE WRONG DIRECTION.

THE CERTIFICATIONS, ARE THEY EVEN NECESSARY ANYMORE?

>> THEY ARE FOR OUR SBEDA PROGRAM, YOU MUST BE CERTIFIED.

>> HAVRDA: JUST NOT FOR THE PRIME. >> FOR PRIME AS WELL.

PRIME OR SUB, YOU HAVE TO HAVE THE RELEVANT CERTIFICATIONS.

>> HAVRDA: BUT LIKE THE WOMEN CERTIFICATION AND -- OKAY.

HOW WOULD THAT WORK IF YOU'RE TAKING THAT CONSIDERATION OUT OF THE

PRIME PART OF IT? >> WELL, SO NOW THE FIRM WOULD BE AWARDED SIMPLY

BASED ON SMALL BUSINESS STATUS. >> HAVRDA: OKAY.

>> SO ANY SMALL THAT BIDS AND CERTIFIED AND ELIGIBLE, THEY WOULD ALL

GET EQUAL POINTS WE APPLY FROM THE SBEDA PROGRAM. >> HAVRDA: I'M TALKING ABOUT THE WOMEN OWNED AND MINORITY OWNS, YOU WOULDN'T NEED THOSE ANY

MORE. >> FOR THAT, BUT THEY SHOULD STILL HAVE IT BECAUSE A LOT OF THE PROJECTS STILL HAVE MINORITY AND WOMEN-OWNED CONTRACTING GOALS, THEY WOULD BE ABLE TO SELF PERFORM THEM IF THEY HAD

THOSE CERTIFICATIONS. >> HAVRDA: OKAY. IT SOUNDS LIKE WE'RE TAKING OUR FOOT OFF THE PEDAL AND THE RACE IS STILL GOING ON AND WE'RE SLOWING DOWN BECAUSE WE'RE AFRAID SOMEBODY ELSE IS GOING TO SLOW US DOWN. I THINK WE'RE GOING IN THE WRONG DIRECTION.

I -- DID YOU WANT TO SAY SOMETHING? >> YEAH, YOU REMINDED ME OF A GOOD POINT. SBEDA'S KIND OF LOOKED AT AS A DIMMER SWITCH.

WE HAD TO TURN THE LIGHTS ALL THE WAY UP, NOW THAT WE'VE EXCEEDED THE GOAL

[00:30:02]

WE FIND THIS HAS ADVERSE EFFECTS. >> HAVRDA: I UNDERSTAND THAT. WE CAN LOOK AT IT AGAIN, BUT MEANWHILE, THOSE BUSINESSES ARE HURTING. THERE'S BUSINESSES CLOSING DOWN AROUND US EVERY DAY A LOT OF THEM ARE MINORITY AND WOMEN-OWNED BUSINESSES.

MAYBE IT'S NOT TIME TO TURN THE DIMMER ON, I THINK WE QUICHE THE LIGHTS ON A LITTLE BRIGHTER . I SAID IT BEFORE, I THINK WE SHOULD WITH ADDING CLASSES, NOT TAKING THEM AWAY, I THINK WEE SHOULD BE ADDING LBGTQIA, I THINK WE SHOULD BE ADDING FOR SPECIAL NEEDS, THOSE ARE PROTECTED CLASSES. SO I HAVE A REAL CONCERN ABOUT IT.

THANK YOU. THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU COUNCILMEMBER CABELLO HAVRDA. COUNCILMEMBER CASTILLO?

>> CASTILLO: THANK YOU, MIKE AND TEAM FOR PRESENTATION.

EVEI'VE GOTTEN THIS PRESENTATION A COUPLE OF TIMES.

A COUPLE OF THE PROPOSED AMENDMENTS PROVIDE MY SMALL BUSINESSES WITH ASSURANCES, RIGHT. WHAT I SHARED DURING COMMITTEE IS WHAT I HEAR FROM D5 SMALL BUSINESSES IS THAT WHEN WE TALK ABOUT SMALL AND MINORITY-OWNED BUSINESSES, WE ACTUALLY MEAN BIG BUSINESSES, RIGHT? AND WITH THE AMENDMENT TO ENSURE THAT WE'RE INCLUDING PERSONAL NET WORTH IS GOING TO BE AN INSURANCE THAT I KNOW D5 SMALL BUSINESSES WANT TO HEAR AS WELL AS GETTING CERTIFIED AS A SMALL BUSINESS IS AN ADDITIONAL ASSURANCE. AND ONE OF THE QUESTIONS AND CONCERNS THAT I HAD IN COMMITTEE WAS AROUND THE SELF-REPORTING, BUT I KNOW STAFF REPORTED THAT IF THERE'S A $10 MILLION CAP AND IT ACTUALLY LED TO HEALTHY LEVEL OF PARTICIPATION, IS THAT CORRECT?

>> YEAH, THEY'RE ALLOWED TO SELF-PERFORM ON PROJECTS OVER 10.

BUT WHATEVER THEY DON'T COVER AT THE PRIME LEVEL, THEY STILL HAVE TO SUPPLEMENT THROUGH THE SUB LEVEL FOR THE ENTIRETY OF THE PROJECT.

>> CASTILLO: THANK YOU FOR THAT CLARIFICATION. THOSE ARE ALL MY CLIENTS. THANK YOU, MICHAEL. THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER CASTILLO.

COUNCILMEMBER VIAGRAN. >> VIAGRAN: THANK YOU. THANK YOU FOR THE PRESENTATION, MICHAEL. LIKE MY COUNCIL COLLEAGUE COUNCILWOMAN CASTILLO, I'VE HEARD THIS QUITE A FEW TIMES. AND I DID WANT TO KIND OF JUST REPEAT FOR THIS MEETING THAT I AM IN FAVOR OF THE HEADQUARTER CHANGE TO SAN ANTONIO. I AM IN FAVOR OF THE PERSONAL NET WORTH CHANGE, BECAUSE I BELIEVE THAT THAT IS -- THAT IS SOMETHING THAT PEOPLE FINANCIALLY SHOULD KNOW, WHETHER YOU'RE IN BUSINESS OR NOT.

SO I LIKE THE OPPORTUNITY THE CITY HAS TO KIND OF DO THAT FINANCIAL LITERACY PIECE WITH THE ENTIRE CITY OF SAN ANTONIO ABOUT WHAT'S YOUR PERSONAL NET WORTH. I DO LIKE THE IDEA OF GIVING THE SBEDA COMMITTEE MORE RESPONSIBILITY, AND I'M HOPING THAT WE CAN ADDRESS SOME OF COUNCILWOMAN CABELLO HAVRDA'S CONCERNS BY GIVING THAT -- THE SBEDA COMMITTEE, AND I DON'T KNOW IF YOU CAN PRESENT, WHEN YOU PRESENT FOR A SESSION, BUT WHAT SORT OF RESPONSIBILITIES THEY WOULD HAVE SO THAT WE ARE NOT -- BECAUSE MY UNDERSTANDING IS THEY'RE GOING TO HAVE MORE OF A ROLE IN GOAL-SETTING, SO THAT WE CAN REALLY MAKE SURE IF WE HAVE THOSE WOMEN-OWNED BISES THAT'S BUSINESSES THAT ARE DOING THAT JOB, AND IF WE HAVE MORE THAN ONE, THAT THEY'RE GETTING THE OPPORTUNITY TO PARTICIPATE IN THERE BECAUSE WE'RE DOING THIS GOAL-SETTING WITH OUR SBEDA COMMITTEE. YEAH, IF WE COULD DO THAT, I THINK THAT COULD MAYBE ADDRESS SOME OF THOSE CONCERNS.

AND THEN I THINK, YOU KNOW, THE ONE THING THAT I THINK CAME OUT OF IT IS -- AND MY CONCERN IS WHAT WE CAN DEFEND IN TERMS OF OUR SBEDA ORDINANCE, BECAUSE I THINK WE ARE HEARING FROM AN ELEMENT THAT IS SAYING WE DON'T NEED IT ANYMORE, BUT I DO BELIEVE IT IS NEEDED.

AND I DON'T KNOW IF ANDY WANTS TO TALK ABOUT ON WHAT WE CAN DEFEND OR IF THAT'S MORE OF AN EXECUTIVE SESSION CONVERSATION THAT WE NEED

TO HAVE. >> SEGOVIA: THANK YOU, COUNCILWOMAN.

WHAT I CAN SAY PUBLICLY IS THAT FOR OUR SBEDA PROGRAM TO WITHSTAND LEGAL CHALLENGE WOULD BE THAT IT MUST BE FUNDAMENTALLY BASED ON OUR DISPARITY STUDY. THE DISPARITY STUDY IS WHAT ALLOWS US TO SAY THAT OUR PROGRAM IS NARROWLY TAILORED TO THE SPECIFIC NEEDS THAT WERE IDENTIFIED ANALYTICALLY AND WITH DATA BY OUR DISPARITY STUDY.

SO IF WE VARY FROM THAT, THAT'S WHAT OPENS US UP TO LEGAL CHALLENGE.

>> VIAGRAN: BUT GIVING OUR SBEDA COMMITTEE MORE RESPONSIBILITY IN THE GOAL-SETTING, THAT WON'T -- THAT SHOULDN'T ADVERSELY IMPACT US.

[00:35:02]

>> SEGOVIA: THAT WILL NOT, NO. >> VIAGRAN: NO, COUNCILWOMAN. THANK YOU. THANK YOU FOR THE

PRESENTATION. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER VIAGRAN. COUNCILMEMBER MCKEE-RODRIGUEZ?

>> MCKEE-RODRIGUEZ: THANK YOU, MAYOR, AND THANK YOU FOR THE PRESENTATION.

I WANT TO ECHO SOME OF WHAT COUNCILWOMAN CABELLO HAVRDA SHARED.

WHEN MY TEAM AND I WERE SETTING POLICY GOALS SOME TIME AGO AND THROWING IDEAS AT OUR WHILE BOARD, A COUPLE OF THE THINGS THAT WE HAD ADDED WERE CHANGES TO OUR PROCUREMENT PROCESS SUCH AS POINTS SPECIFICALLY FOR BLACK-OWNED BUSINESSES AND LGBTQ BUSINESSES AND I THINK THIS IS GOING IN THE OPPOSITE DIRECTION OF WHERE I'D HOPE TO GO AND& WHERE OF MY CONSTITUENTS AND BUSINESSES IN MY DISTRICT WANT US TO GO.

THERE'S A FEW MAJOR CHANGES THAT I THINK ARE WELCOME, REQUIRING THAT LOCAL BUSINESSES MUST BE HEADQUARTERED HERE RATHER THAN JUST ALLOWING FOR A SUBSTANTIAL LOCAL PRESENCE. I THINK THAT WILL HELP US. I'M PLEASANTLY SURPRISED THE PERSONAL NET WORTH STANDARD REQUIREMENT, SO A RICH PERSON CAN'T CLAIM SMALL BUSINESS POINTS.

I DON'T KNOW THAT I HAVE A STRONG FEELINGS ABOUT REMOVING THE GOAL-SETTING COMMITTEE. I THINK OUR GOALS ARE CLEAR BASED ON THE FINDING OF THE DISPARITY STUDY AND I MAY ACTUALLY HAVE A QUESTION THAT I THINK GUIDES WHERE WE GO. WHICH BRINGS ME TO A LARGER CONCERN THAT I DO HAVE. AND I THINK IT'S BEEN SHARED, THERE'S STILL DISPARITIES IN THE UTILIZATION OF BLACK, ASIAN AND NATIVE AMERICAN-OWNED BUSINESSES WHEN COMPARED TO HISPANIC-OWNED BUSINESSES AND WHITE WOMEN-OWNED BUSINESSES, THAT'S AN AREA WHERE THE PROGRAM STILL HAS ROOM AND NEEDS TO GROW.

AND THIS FINDING SHOULD LEAD US TO MAKE A NUMBER OF CHANGES TO OUR PROCUREMENT PROCESS INCLUDING NEW STANDARDS FOR WHO WE HAVE PLACED ON SCORING AND EVALUATION COMMITTEES. FOR EXAMPLE, WE SHOULD ENSURE THAT ON EVERY ONE OF OUR COMMITTEES WE MAKE EVERY POSSIBLE EFFORT TO ENSURE THERE'S BLACK, ASIAN AND NATIVE AMERICAN REPRESENTATION AND SPECIFICALLY WOMEN OF COLOR. WE NEED CHANGES IN THE QUALITY AND QUANTITY OUTREACH WE DO WITH THESE POPULATIONS.

AND BASED ON THE FINDINGS OF THE DISPARITY STUDY, I'D SAY WE STILL NEED AN ADDITIONAL SCORING QUAT GOIR FOR BUSINESSES THAT ARE UNDER UTILIZE SO THEY CANNOT GET EXTRA POINTS AND WE CAN ACHIEVE PARITY.

I DO WANT US TO PAUSE AND BE REAL FOR A MOMENT. OVER TWO-THIRDS OF SAN ANTONIANS ARE PEOPLE OF COLOR, SO WE SHOULD SEE TWO-THIRDS OF OUR CONTRACTED BUSINESSES BE OWNED BY PEOPLE OF COLOR.

WOMEN AND GIRLS MAKE UP A MAJORITY OF OUR CITY, SO WE SHOULD SEE A MAJORITY OF OUR CONTRACTS GOING TO WOMEN-OWNED BUSINESSES. THE MATH IS REALLY SIMPLE, AND I DON'T THINK THAT'S A NOBLE ACHIEVEMENT.

I KNOW WE HAVE AVAILABILITY TO WORRY ABOUT AND ALL THOSE, BUT IT WOULDN'T BE A NOBLE A ACHIEVEMENT EVEN IF WE DID MAKE THAT, IT'S THE BARE MINIMUM. AND THE PARITY THAT WE DID ACHIEVE IS STILL FOR SOME AND NOT FOR OTHERS -- EARNED THE DISTINCTION OF BEING THE MOST ECONOMICALLY SEGREGATED CITY IN THE COUNTRY AND THAT'S TIED TO OUR HISTORY AS A RACIALLY SEGREGATED CITY. WE HAVE AND HAVE HAD A RACE ISSUE IN OUR CITY.

IT DOES US NO GOOD TO PRETEND THAT WE DON'T. WE DIDN'T ACHIEVE THE GOALS THAT WE NEED, WE DIDN'T ACHIEVE PARITY FOR EVERYONE.

IF WE WANT TO BE COMPASSIONATE, MEET THE MOMENT, THAT MEANS WE HAVE TO DO RIGHT BY THE PEOPLE WHO HAVE HISTORICALLY BEEN WRONGED. AND ELIMINATING THE RACE BASED POINTS IS TO ME QUITE LITERALLY THE OPPOSITE OF THAT. SO I'M NOT IN SUPPORT OF REMOVING THOSE POINTS. TO ME, AND I THINK I'M ECHOING COUNCILWOMAN CABELLO HAVRDA, THAT'S BASICALLY VOLUNTARILY ENDING THE PROGRAM FOR THE PEOPLE IN OUR COMMUNITY THAT NEED IT MOST.

TOOLS AND LEVERS NEEDED TO ACHIEVE THEM, WE DON'T HAVE TO MEET THE GOALS, THAT'S NOT A REQUIREMENT THAT WE HAVE. WE DON'T HAVE TO MEET THEM, AND I WORRY THAT REMOVING THE POINTS MAKES IT MORE LIKELY THAT WE WON'T. SO I UNDERSTAND THE STAFF MOVES IN A CAUTIOUS DIRECTION AND I KNOW THIS RECOMMENDATION IS GUIDED BY A GLO GOAL TO MAKE THE PROGRAM LEGALLY AS DEFENSIBLE AS POSSIBLE BUT I'D -- WE CANNOT MOVE AND MAKE DECISIONS COWARDLY AND I THINK THAT'S WHAT WE'RE DOING.

I'LL LEAVE THAT THERE. THANK YOU. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER MCKEE-RODRIGUEZ. COUNCILMEMBER ALDARETE

GAVITO? >> GAVITO: THANK YOU, MAYOR.

I HAD A FEW QUESTIONS, AND JUST ACTUALLY TO PIGGYBACK OFF OF COUNCILMAN MCKEE-RODRIGUEZ. SO IN LOOKING AT SLIDE 18, Y'ALL ARE SAYING IF WE WERE TO MOVE -- REMOVE THE RACE AND GENDER NEUTRAL, BASICALLY IT WOULD CHANGE FROM, YOU KNOW, 153 WOULD HAVE BEEN

AWARDED DOWN TO 148, RIGHT? >> RIGHT.

USING REAL-LIFE SCENARIOS OF PAST BIDDERS, WE CONVERTED THE RACE AND GENDER CONSCIENCE POINTS TO RACE AND GENDER NEUTRAL, SO JUST SMALL BUSINESS AND WE FOUND THAT THE OUTCOMES WERE LARGELY SIMILAR WITH THAT

APPLICATION. >> GAVITO: AND I THINK WHAT I'M HEARING FROM MY COUNCIL COLLEAGUES IS THAT MAYBE IT'S NOT TIME TO DO THAT QUITE YET.

AND I MEAN, IT IS INTERESTING, THAT DELTA ISN'T HUGE, RIGHT?

[00:40:05]

ON SLIDE NUMBER 6, HOW IS THIS IMPACTING OUR MIDDLE EASTERN -- OUR NORTH AFRICAN COMMUNITIES, THE [INAUDIBLE] COMMUNITIES, WE HAVE LARGE BUSINESSES INDUSTRIES -- CONTACT WITH THEM QUITE A BIT AND THROUGH THIS PROCESS, AND, AGAIN, TO DO ANYTHING IN TERMS OF A REMEDY, YOU HAVE TO PROVE THERE'S A DISPARITY AND SO ON AND SO FORTH, BUT WHAT WE'VE COMMITTED TO THAT GROUP IS WE CAN DEFINITELY EXPLORE CERTIFICATIONS FOR THEM WITH OUR CERTIFYING AGENCY LOCALLY AND WE CAN COMMIT TO POTENTIALLY TRACKING THAT DATA AND THEN AT LEAST DOWN THE ROAD EVALUATING IF DISPARITIES ARE PRESENT AND MAYBE SOME REMEDIES NEEDED, SO THAT'S THE TYPE OF ACTION WE CAN

COMMIT TO THEM NOW. >> GAVITO: OKAY. THAT'S GOOD.

AND THEN ON SLIDE 11, I MEAN, I DO AGREE ABOUT THE PERSONAL NET WORTH COMMENTS EARLIER, BUT WHAT IS THE CRITERIA FOR BUSINESSES TO BE CLASSIFIED AS AN ECONOMICALLY DISADVANTAGED BUSINESS?

>> SURE THING. SO LIKE I SAID, THEY'RE GOING TO HAVE TO DO TWO THINGS. NUMBER ONE, THEIR BUSINESS TAX RECORDS ALONE HAVE TO PROVE THEY'RE NOT A LARGE BUSINESS.

SO WHEN THEY SUBMIT THOSE TO THE AGENCY, THEY CHECK AGAINST IS SBA AND AS LONG AS THEY'RE BELOW, THAT'S CRITERIA ONE. BUT SECOND, THEY'RE GOING TO HAVE TO MEET THIS PERSONAL NET WORTH THRESHOLD OF 1.23 MILLION. EVERYBODY BELOW THAT IS THE ONES GOING TO BE

ELIGIBLE FOR THIS PROGRAM. >> GAVITO: I SEE.

THAT'S ALL MY QUESTIONS FOR NOW. THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ALDARETE GAVITO.

COUNCILMEMBER KAUR? >> KAUR: THANK YOU, MAYOR.

THANK YOU ALL TO THE ED DEPARTMENT FOR ALL OF THE WORK THAT YOU'VE DONE ON THIS PROCESS. YOU KNOW, IT'S DIFFICULT.

SO MANY OF US -- AND I WASN'T AT THE TABLE WHEN YOU GUYS WERE FIGHTING FOR THIS, BUT IT FEELS LIKE WHAT COUNCILMEMBER MCKEE-RODRIGUEZ'S POINT IS WE'RE GOING BACKWARD TS. I UNDERSTAND A LOT OF THAT IS NOT IN OUR CONTROL AND WE'RE TRYING TO BE IN A SPACE WHERE WE'RE NOT OPENING OURSELVES UP TO CHALLENGES.

SO THE QUESTION THAT I HAD IS THE ANALYSIS THAT YOU DID ON SLIDE THAT SHOWS THAT 148 OUT OF 153, THE ONE THAT COUNCILMEMBER ALDARETE GAVITO WAS JUST POINTING TO, CAN Y'ALL GO TO THAT SLIDE? I CAN TELL YOU WHICH ONE IT IS. CAN WE DO THIS -- IN AUDIO] -- SO SAY IF WE SAID FOR THE NEXT YEAR, WE'RE GOING TO CONTINUE THIS ANALYSIS SO WE CAN TRACK WHETHER THIS STAYS TRUE, IF WE DO TAKE OUT THE NEUTRAL POINTS, AND THEN LIKE MAYBE IT'S SIX MONTHS, I DON'T KNOW WHAT THE APPROPRIATE TIME PERIOD WOULD BE, BUT MAYBE IT'S SIX MONTHS OR A YEAR, WHATEVER, TO SAY THAT -- SO THAT IN THE EVENT THAT THIS IS DRASTICALLY CHANGED, MAYBE WE EVEN SET A BAR, LIKE IF IT'S BELOW 75%, THAT WE CONSIDER DOING SOMETHING DIFFERENTLY? IS THAT SOMETHING THAT WE

COULD CONSIDER? >> ABSOLUTELY. SO EVEN NOW, WE MEASURE UTILIZATION OVERALL AND WHERE WE ARE IN MEETING THE GOAL, AND WE ALSO BREAK IT DOWN BY PRIME AND SUB LEVEL. WE CAN GO ANOTHER LEVEL.

WE DID HAVE THIS VERY SIMILAR PROCESS IN 2018 IN OUR ARCHITECTURE AND ENGINEERING INDUSTRY, THERE'S A STATE STATUTE THAT SAYS YOU CAN ONLY GRADE PEOPLE ON THEIR QUALIFICATIONS, SO WE DIALED BACK THE POINTS THERE AS WELL IN THAT TIME, AND WHAT WE HAVE FOUND IN DOING THAT SIMILAR ANALYSIS THE GOALS AND UTILIZATION OF THOSE HAVE HELD STEADY.

>> KAUR: I'D LOVE TO SEE WE AT LEAST CONTINUE TO TRACK THAT AND OBVIOUSLY WE WOULD BUT MAYBE WITH A LITTLE MORE FOCUS FOR THE NEXT THREE TO SIX MONTHS TO SEE IF THERE'S A DRASTIC CHANGES IN THE AWARDS BEING PROVIDED.

AND ALSO AS ALWAYS CONTINUING TO FOCUS ON GROWING UP NEW ORGANIZATIONS THAT ARE GOING TO BE ABLE TO FULFILL THESE CONTRACTS.

I DO LOVE SEEING THAT THE SMALL BUSINESS -- THE EMERGING SMALL BUSINESS ENTERPRISE WAS INCLUDED AS ONE OF THOSE CATEGORIES, SO THAT'S GOOD NEWS. THE ONE THING I WANT TO TALK ABOUT IS THE ADMINISTRATIVE FEEDBACK THAT WAS RECEIVED BECAUSE I NOTICED THAT WAS ON THE FEEDBACK FROM THE COMMUNITY, JUST IN TERMS OF THE PROCESS, RIGHT, IN TRYING TO MAKE THE PROCESS A LITTLE MORE SIMPLER, AND SO I NOTICED THAT WAS A CONCERN FOR THE NET WOART COMPONENT, SO AGREE THAT COMPONENT IS IMPORTANT, CAN WE MAKE THAT A SELF- -- LIKE A SELF-REPORTING FEATURE SO THAT THERE -- IT'S NOT ADDITIONAL PAPERWORK THAT FOLKS HAVE TO THEN PROVIDE, WHICH MAY MAKE THEM MORE UNLIKELY TO SUBMIT?

>> YEAH. SO WE'VE -- AGREED. I'VE HEARD THAT PROBABLY FROM EACH AND EVERY SMALL BUSINESS I'VE PRESENTED THIS TO.

THEY LIKE THE IDEA OF THIS, THEY JUST DON'T WANT TO HAVE MORE PAPERWORK TOO GO THROUGH. I THINK SOME LEVEL OF ATTESTATION WHERE THEY SIGN OFF ON CERTAIN -- AGREEING TO THOSE STATEMENTS IS NECESSARY, WE'RE JUST TRYING TO MAKE

SURE THAT'S NOT A MULTI-PAGE PROCESS. >> KAUR: YEAH.

AND, YOU KNOW, I'D LIKE TO THINK THAT PEOPLE WOULD BE HONEST WITH WHAT THEY'RE ATTESTING TO, BUT I DO UNDERSTAND THE NEED TO GET SOME KIND OF PROOF. BUT, YEAH, JUST MAKING SURE THAT, LIKE EVEN WHEN YOU GUYS WERE REVIEWING THE PROCESS, DID YOU GUYS KIND OF REVIEW IT THROUGH

[00:45:02]

RESPONSE? >> OH, YEAH. SO THE DISPARITY STUDY OUTSIDE OF THE HARD DATA HAS A TON OF ANECDOTAL EVIDENCE TALKING ABOUT GENERAL DIFFICULTY OF PAPERWORK, ALL THE REQUIREMENTLESS OF THE PROCUREMENT PROCESS, AND THAT'S SOMETHING WE'RE ACTUALLY TRYING TO ADDRESS. AND AS I REFERENCED EARLIER T OVERHAUL OF THE

PROCESS. >> KAUR: SO ANOTHER ONE OF THE THINGS I'LL ASK FOR Y'ALL TO TRACK IS HOW MANY MORE PEOPLE -- OR THE DEMOGRAPHICS OF THE POOL, OF JUST THE APPLICATION POOL. AND IF THAT GROWS IN A

SPECIFIC WAY OR NOT. >> AGREED. AND THAT IS SOMETHING WE

DO TRACK BECAUSE THAT IS IMPORTANT TO US AS WELL. >> KAUR: AWESOME.

THANK YOU SO MUCH. THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK

YOU, COUNCILMEMBER KAUR. COUNCILMEMBER WHYTE? >> WHYTE: THANK YOU FOR THE PRESENTATION.

DISTRICT 10 REPRESENTATIVE ON THE SBEDA COMMITTEE, THANK YOU FOR ALL THE GREAT WORK. I HAVE A LITTLE BIT DIFFERENT VIEW. YEUNL, WHEN WE HAD THE FIRST -- WHEN WE HAD THE FIRST PRESENTATION ON THIS, YOU KNOW, WE WERE TOLD THE ULTIMATE GOAL, RIGHT, IS TO NOT HAVE TO HAVE A SBEDA PROGRAM AT SOME POINT, RIGHT? THAT'S THE GOAL. AND THE ONLY WAY WE'RE GOING TO EVER FIND OUT -- AND I -- IF THE PROGRAM IS WORKING AND IF WE'VE MADE THE CHANGES THAT WE WANT TO SEE BECOME PERMANENT PERMANENT IS IF WE START SCALING THE PROGRAM BACK AT SOME POINT. AND IF YOU TAKE A LOOK AT SLIDE 6, YOU KNOW, THE WAY I READ THIS -- AND I'LL DISAGREE WITH COUNCILMAN MCKEE-RODRIGUEZ A BIT HERE, THE MAKEUP OF OUR POPULATION ISN'T, IN MY OPINION, THE RELEVANT, YOU KNOW, METRIC TO BE LOOKING AT WHEN WE LOOK AT IS THE PROGRAM WORKING OR NOT, RIGHT? IT'S AVAILABILITY. AND IF YOU LOOK AT YOUR CHART HERE, YOU'VE GOT 24.9% OF THE COMPANIES GOING OUT FOR THESE JOBS ARE MINORITY AND WOMEN-OWNED BUSINESSES AND THEY'RE GETTING 53% OF THE WORK.

AND SO THAT TELLS ME RIGHT THERE THAT THE PROGRAM'S WORKING.

YOU KNOW, LIKE YOU SAID. THE LEGAL FOLKS HAVE LOOKED AT THIS AND OBVIOUSLY THIS IS WHY WE HAVE THE RECOMMENDATION THAT WE DO, YOU KNOW, SAYING THAT, WELL, LET'S JUST LET THE COURTS KNOCK IT DOWN.

THAT'S NOT GOOD FOR THE CITY'S FINANCIAL BOTTOM LINE, TO BE SPENDING MONEY ON MORE AND MORE LAWSUITS, AS I THINK I'VE MADE THAT POINT BEFORE.

SO APPRECIATE THE PRESENTATION. YOU KNOW, HAPPY THAT WE'RE MOVING IN THIS DIRECTION. THANKS.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE.

COUNCILMEMBER PELAEZ? >> PELAEZ: I TOLD YOU THE LAST TIME WE HAD A MEETING THAT I THINK YOU'RE DOING AN EXCELLENT JOB.

YOU NEVER CEASE TO IMPRESS, SO EVERYBODY PLEASE BE MORE LIKE SINDON. SERIOUSLY, DOING GREAT. ONE OF THE THINGS I LIKE ABOUT WORKING WITH YOU, AND I'VE SEEN YOU, YOU KNOW, OVER THE YEARS, IS THAT YOU'VE NEVER FALTERED IN YOUR DEFENSE OF THE PROGRAM AND WHOO WE'RE TRYING TO ACCOMPLISH HERE, RIGHT? AND I THINK THAT YOU'VE BEEN FAITHFUL TO THE GOALS ALL THE TIME AND EVERY TIME.

AND I REALLY APPRECIATE THAT. I ALSO KNOW THAT, YOU KNOW, YOU'VE GOT A BOSS, RIGHT. AND, YOU KNOW, UNDER ALEX, AND BRENDA AND UNDER ERIK, I HAVE NO REASON TO BELIEVE THAT, YOU KNOW, THAT YOU GUYS ARE APPROACHING THIS WITH ANYTHING BUT GOOD FAITH, RIGHT. AND I KNOW THAT, YOU KNOW, THE WORK THAT COLETTE HAS DONE FOR US AND THE ADVICE THAT SHE'S GIVEN US IS SOMETHING THAT YOU GUYS HAVE INTERNALIZED AND, YOU KNOW, YOU'RE GUIDED BY.

BY THAT LADY'S VERY SAGE ADVICE, RIGHT? LET'S NOT FORGET THAT THERE'S NOBODY, NOBODY THAT HAS EVER BEEN BROUGHT BEFORE US WHO IS MORE OF A SUBJECT MATTER EXPERT THAN THAT LADY. IN FACT, THAT LADY IS HIRED BY CITIES AROUND THE COUNTRY, RIGHT, TO DO EXACTLY THIS KIND OF WORK BECAUSE SHE'S KNOWN TO PUSH THE ENVELOPE AND KEEP US CUTTING EDGE, RIGHT? WHEN SHE TELLS US, YOU KNOW, IT'S OKAY, I BELIEVE HER. I HAVE NO REASON NOT TO BELIEVE HER, RIGHT? I -- YOU KNOW, I'LL TELL YOU -- I DON'T KNOW HOW MANY OF YOU HAVE KIDS THAT ARE CURRENTLY, YOU KNOW, GETTING THEIR DRIVER'S LICENSES OR EXPERIENCING THE DRIVER'S ED PHENOMENON, YOU TOO, ERIK? MY SON HAS HIS NEW DRIVER'S LICENSE AND WE'RE FINALLY SENDING HIM TO SCHOOL IN MOM'S MINIVAN EVERY DAY, AND IN ORDER TO DO THAT, HE INSISTS THAT WE KEEP HIM ON SPE SPEAKER PHONE THE ENTIRE WAY THERE.

BE IN THIS LANE, TAKE THIS EXIT. IT'S ALMOST LIKE TRAINING WHEELS FOR THE MINI VAN IF YOU WILL. LATELY I'VE BEEN HANGING UP ON HIM A COUPLE MORE BLOCKS SOONER THAN HIS ARRIVAL TO THE

[00:50:02]

I ALSO DON'T THINK THAT, YOU KNOW, EVERY GOVERNMENT PROJECT AND EVERY GOVERNMENT PLAN NEEDS TO BE PUT ON AUTO PILOT IN PERPETUITY, RIGHT? AND SO I GO TAKE ISSUE, HOWEVER, SAYING THAT WHICH ARE STILL THE MOST -- WHAT IS IT ECONOMICALLY SEGREGATED CITY OR THE POOREST CITY. MAYOR, IS THAT TRUE?

ARE WE? >> MAYOR NIRENBERG:

>> PELAEZ: THE PROGRAMS THAT WE'VE INSTITUTED NOT JUST OVER THE PAST SEVEN YEARS, BUD OVER THE PAST 10, TWOAFL 12, OVER THE LIFETIME OF THE SBEDA PROJECT ARE WORKING. THAT'S BEING LOST IN THIS CONVERSATION AND I THINK IT'S UNFAIR TO YOU. IT'S UNFAIR TO THE SAN ANTONIANS WHO'VE BEEN POURING THEMSELVES INTO THIS AND, YOU KNOW, PUSHING AS HARD AS THEY POSSIBLY CAN TO MAKE THIS PROJECT A SUCCESS.

AND SO, YOU KNOW, I KEEP HEARING, RIGHT, WE NEED TO CONTINUE TO BE CONSISTENT, CONTINUE TO BE CONSISTENT, BUT THE MAYOR LIKES TO QUOTE EMERSON, AND ONE OF HIS FAVORITE QUOTES THAT HE'S THROWN AT ME EVERY ONCE IN A WHILE IS CONSISTENCY IS THE HOB GOBLIN OF LITTLE MINDS.

AND CONSISTENCY IS COWARDICE AND I THINK YOU GUYS ARE THE OPPOSITE OF THAT. YOU GUYS ARE DOING GREAT WORK AND I APPRECIATE THE YEOMAN'S EFFORT IN MAKING SURE THAT WE'RE CONSTANTLY ACHIEVING, BUT MEASURING, TOO, RIGHT? AND I THINK IT'S A GOOD OPPORTUNITY NOW FOR US TO MEASURE WHETHER OR NOT THE PROGRAM IS READY TO STAND ON ITS OWN 2 FEET BY NOT EXISTING ANYMORE. AND SO THOSE ARE MY COMMENTS.

I APPRECIATE IT. THANKS. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER PELAEZ. COUNCILMEMBER

MCKEE-RODRIGUEZ? >> THANK YOU, MAYOR. I'LL ADDRESS ONE POINT THAT I THINK WAS MADE WHEN I SAID THAT WE HAD AT ONE POINT EARNED THE DISTINCTION OF BEING THE MOST ECONOMICALLY SEGREGATED CITY IN THE COUNTRY. IS THAT RIGHT MAYOR? YES, THAT IS ACCURATE.

I THINK COUNCILMAN PELAEZ ONCE SENT ME AN ARTICLE THAT WE WERE THE FASTEST ECONOMICALLY INTEGRATING CITY IN THE COUNTRY AND THAT'S A RESULT OF GENTRIFICATION, THAT'S A RESULT OF A LOT OF REALLY BAD THINGS THAT ARE HAPPENING. SO THE PROBLEM IS STILL THERE, THE PROBLEM WAS THERE.

AND WE'RE NOT DOING AWAY WITH IT. I'LL ALSO ADDRESS THAT, YOU KNOW, NOT HAVING THE PROGRAM IS NOT PROOF THAT WE DON'T NEED IT.

AND DOING AWAY WITH PARTS OF IT DOESN'T MEAN THAT WE'VE ACHIEVED THE GOALS THAT THOSE PARTS WERE MEANT TO DO. SO I'M GOING TO ASK A QUESTION THAT IT MAY KIND OF GET INTO SORT OF LEGAL -- A LEGAL QUESTION. I DON'T NEED AN ANSWER HERE.

I DON'T NEED AN ANSWER IN HERE, BUT I WANT YOU GUYS TO THINK ABOUT IT AND HOPEFULLY IT ANSWERS THE -- I THINK THE CONCERN THAT MANY OF US HAVE EXPRESSED AND SO IF WE WANT TO BE GUIDED BY THE FINDINGS OF THE STUDY, THAT'S WHAT ANDY JUST SAID, THE STUDY FINDS DISPARITY FOR THREE GROUPS. BLACK, ASIAN AND NATIVE AMERICAN-OWNED BUSINESSES. SO MY QUESTION THAT I WANT EVERYONE TO REFLECT ON IS COULD IT BE POSSIBLE THAT WE ELWHRIM NATE POINTS FOR ALL OTHER GROUPS AND THAT BE LEGALLY DEFENSIBLE? THAT WILL BE MY QUESTION. CAN YOU ANSWER THAT HERE OR DOES THAT HAVE TO BE

A -- >> SEGOVIA: COUNCILMAN, I WOULD ANSWER THAT ONE IN EXECUTIVE SESSION, WHICH WE WILL HAVE RIGHT AFTER THIS SESSION.

SOUNDS GOOD. THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER MCKEE-RODRIGUEZ. ANY FURTHER DISCUSSION ON THIS ITEM? I WILL CLOSE BY SAYING IT IS POSSIBLE FOR US TO NOT BE WHERE WE WANT TO BE, BUT ALSO IMPROVING AT THE SAME TIME.

THOSE TWO THINGS CAN BE TRUE, AND I THINK THAT SBEDA DATA SHOWS US THAT. 2017 REPORTS SHOW THAT WE ARE THE MOST SEGREGATED -- INCOME SEGREGATED CITY IN THE COUNTRY.

I'M SURE WE CAN FIND A LOT OF STUDIES THAT SHOW AND VALIDATE THAT DATA.

THE TRUTH OF THE MATTER IS, WE ARE MOVING IN THE RIGHT DIRECTION.

THERE IS NO DOUBT ABOUT THAT IN TERMS OF HOUSING AFAFFORDABILITY, WHICH IS A BIG PART OF THAT. WAGE EQUALITY, RISING

[00:55:03]

THIS PROGRAM IS ONE OF THEM. SO I AM SENSITIVE TO THE IDEA THAT WE -- WE'RE SAYING WE'RE GOING BACKWARD.

THE DATA IS GOING IN THE RIGHT DIRECTION. AT SOME POINT BY DESIGN AND BY LEGAL REQUIREMENT, WE HAVE TO START TAKING THE TRAINING WHEELS OFF.

THE IMPORTANT PART ABOUT THIS PROGRAM, THOUGH, IS THAT IF WE FIND THAT WE ACTUALLY DO GO BACKWARDS, IT'S ABOUT OUTCOMES, RIGHT? WE WANT TO GET TO 100% PARITY. WE WANT TO GET TO 100% ON ALL THOSE. I KNOW THAT'S PROBABLY IMPOSSIBLE TO BE AT EXACTLY 100, BUT IF WE START GOING BACKWARDS AS OPPOSED TO WHAT WE'RE DOING RIGHT NOW, WHICH IS GOING FORWARD, IF WE TAKE SOME OF THE TRAINING WHEELS OFF, ACCORDING TO OUR LEGAL REQUIREMENTS AND WE START GOING BACKWARDS, THEN WE CAN PUT THEM BACK ON, THE DIMMER SWITCH.

SO I DON'T WANT THE -- I DON'T WANT IT TO GET LOST TO ANYONE, THE REASON WHY WE'RE HAVING THIS CONVERSATION IS BECAUSE THIS PROGRAM HAS PROVEN VITAL FOR THE SMALL BUSINESS COMMUNITY TO GAIN PARITY IN THIS CITY, AND THAT'S A GOOD, GOOD THING. WE HAVE PARAMETERS WE'VE GOT TO WORK WITH, BUT I AGREE WITH WHAT COUNCILMAN WHYTE SAID, THIS PROGRAM WAS NEVER CONCEIVED -- SHOCKING, RIGHT? -- EVERYBODY'S STOPPED. I AGREED WITH COUNCILMAN WHYTE.

THIS PROGRAM WASN'T CONCEIVED TO BE PERMANENT.

IF IT'S PERMANENT, THEN WE'RE DEFINITELY NOT GOING IN THE RIGHT DIRECTION. SO WE'VE GOT TO -- WE'VE GOT TO ADJUST.

WE'VE GOT TO ADJUST AND WE'RE ADJUSTING BASED ON A LEGAL CONSTRUCTS.

WE'RE NOT GOING TO ABANDON IT BY ANY STRETCH.

WE WANT TO SEE IMPROVEMENTS IN THOSE RED BOXES, BUT LET'S ACKNOWLEDGE WHERE COLLECTIVELY, US AT THIS TABLE AND THROUGHOUT THE COMMUNITY, ARE DOING SOME GOOD WORK. IT'S HAPPENING.

AND WE SHOULD BE -- WE SHOULD BE GLAD ABOUT THAT.

SO THAT'S ALL I WANTED TO SAY. WITH THAT, THAT IS A --

[EXECUTIVE SESSION At any time during the meeting, the City Council may recess into executive session in the Presidio Conference Room to consult with the City Attorney's Office (Texas Government Code Section 551.071) and deliberate or discuss any of the following:  ]

GOVERNMENT CODE SECTION 551.071, AND DELIBERATE >> MAYOR NIRENBERG: ALL RIGHT. GOOD AFTERNOON, EVERYONE.

THE TIME IS 5:04 P.M. ON THE SIXTH DAY OF DECEMBER, 2023.

CITY COUNCIL HAS RECONVENED FROM ITS EXECUTIVE SESSION.

NO OFFICIAL ACTION WAS

* This transcript was compiled from uncorrected Closed Captioning.