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>> VIAGRAN: TIME IS NOW 2:01 ON TUESDAY, APRIL 30, 2024, AND THE MEETING OF THE AUDIT COMMITTEE IS NOW CALLED TO ORDER. MADAM CLERK, CAN YOU CALL THE ROLL AGENDA TODAY SO I'LL BE ALLOWING SPEAKERS TWO ROUNDS PER HOUR, WITH FIVE MINUTES THE FIRST ROUND AND THREE MINUTES THE SECOND ROUND. FIRST ITEM ON THE AGENDA IS APPROVAL OF THE MINUTES, CAN I GET A MOTION AND A SECOND TO
APPROVE THE MINUTES? >> I MAKE A MOTION TO APPROVE THE MINUTES.
>> I SECOND. >> VIAGRAN: I HAVE A MOTION AND A SECOND.
IS THERE ANY DISCUSSION? ALL IN FAVOR, SAY AYE.
>> ALL OPPOSED SAY NO. ANY ABSTENTIONS? WE HAVE ONE.
MOTION CARRIES. MADAM CLERK, DO WE HAVE ANY PUBLIC COMMENT?
>> CLERK: WE HAVE NO MEMBERS OF THE PUBLIC SIGNED UP TO SPEAK. >> VIAGRAN: THANK YOU.
ALL RIGHT. ITEMS 2 THROUGH 8 ARE FINAL INTERNAL AUDIT REPORTS. IS THERE ANYTHING FROM THE REPORT THAT ANYBODY WANTS TO PULL? CAN I GET A MOTION TO APPROVE THE FINAL INTERNAL AUDIT REPORTS -- I'VE GOT A MOTION.
DO I HAVE A SECOND. >> I SECOND. >> VIAGRAN: GREAT.
KEVIN, I JUST WANT TO APPLAUD YOU ON ALL OF YOUR HARD WORK THAT YOU DID. THIS IS QUITE A FEW AUDITS, AND THEN JUST FOR THE PUBLIC'S PURPOSES, THE ONE DONE ON PRE-K FOR SA AND THE TRANSPORTATION, WE ARE GOING TO MOVE THAT -- THIS WILL COME BACK, AND WE'LL SEE THE PROGRESS. SO IT WILL COME BACK TO AUDIT, AND I AM IN CONVERSATION WITH THE CHAIR OF THE COMMUNITY HEALTH AND ET CETERA ET CETERA COMMITTEE THAT I'M PART OF, AND WE WILL BE TAKING IT THERE TO HAVE THEM LOOK AT IT AND MAKE SURE WE ADDRESS THAT.
I THINK WE HAVE SOME GREAT OPPORTUNITIES. SO THANK YOU FOR ALL OF YOUR HARD WORK. WE HAVE A MOTION, WE HAVE A SECOND.
SO LET'S TAKE A VOTE. IS THERE ANY FURTHER DISCUSSION? ALL IN FAVOR SAY AYE.
ALL RIGHT. THANK YOU. WE HAVE TWO PRESOLICITATION HIGH PROFILE BRIEFINGS FOR INDIVIDUAL CONSIDERATION. MADAM CLERK, PLEASE READ THE CAPTION FOR ITEM 9.
>> CLERK: ITEM 9 IS THE BRIEFING ON THE RELEASE OF SOLICITATION FOR ONE CONTRACT TO PROVIDE THE TRANSPORTATION DEPARTMENT WITH MARKETING AND COMMUNICATION SERVICES IN THE ESTIMATED TOTAL
VALUE OF $2,450,000 FOR 3 YEARS WITH 2, 1-YEAR OPTIONS TO RENEW. >> VIAGRAN: AND THERE'S A STAFF
PRESENTATION. CAT, THE FLOOR IS YOURS. >> THANK YOU.
GOOD AFTERNOON. I'M CAT HERNANDEZ, THE DIRECTOR FOR THE CITY'S TRANSPORTATION DEPARTMENT. THIS PRESOLICITATION BRIEFING WILL COVER A MARKETING COMMUNICATION SERVICES FOR THE IT HAPPENS DEPARTMENT AS WELL AS SAFE STREETS FOR ALL GRANT AWARD.
OUR DEPARTMENT PROPOSES TO ISSUE AN RFP FOR PROFESSIONAL SERVICES FOR MARKETING COMMUNICATIONS, ADVERTISING, AND PUBLIC RELATIONS TO THOSE THAT UTILIZE SERVICES.
IT IS FOR THREE YEARS WITH TWO ONE YEAR RENEWAL OPTIONS.
2.45 MILLION OF WHICH 1.5 MILLION IS TIED TO THE EXECUTION OF OUR TEN SAFETY CAMPAIGNS FOR THE GRANT. THIS SOLICITATION HELPS OUR CITY ENSURE WE WILL MEET THE REQUIRED FIVE-YEAR GUIDELINE AS DIRECTED BY THE FEDERAL HIGHWAY ADMINISTRATION.
THE OUTREACH TO OUR REGISTERED VENDORS ARE OVER ONE THOUSAND BASED ON THE NGDP CODES FOR THE SOLICITATION. IT IS BE CONDUCTED THROUGH THE CHANNEL, OUR BIDDING PAGE, HEART BEAT, AND SYSTEM.
OUR VOTING MEMBERS INCLUDE STAFF FROM THE CITY MANAGER'S OFFICE.
TRANSPORTATION, COMMUNICATION AND ENGAGEMENT.
AVIATION, NEIGHBORHOOD AND ENGAGEMENT SERVICES, AND OUR ANIMAL CARE SERVICES DEPARTMENT. THE EVALUATION CRITERIA IS BROKEN DOWN BY THE FOLLOWING. 45 POINTS FOR EXPERIENCE, BACKGROUND, AND QUALIFICATIONS. 40 POINTS FOR THE PROPOSED PLAN, AND 15 POINTS FOR
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PRICING, AS THIS IS A FEDERAL SOLICITATION, THE PROGRAM IS WAIVED BY LOCAL PROCESS AND VETERAN OWNED SMALL BUSINESS PRACTICES ARE WAIVED.ALSO THIS IS TIED TO SAFE STREETS FOR ALL PROGRAM, THERE IS NO DBE REQUIREMENT.
OUR TIMELINE FOLLOWING THE BRIEFING INCLUDES A RELEASE DATE OF MAY 15.
JULY 1 IS THE DEADLINE FOR SUBMIT TALES, AND THE PROCESS IS ANTICIPATED TO BE COMPLETED BY THE END OF JULY, OUR POST SOLICITATION IS SUPPOSED TO BE IN SEPTEMBER WITH CITY COUNCIL CONSIDERATIONS SCHEDULEED FOR OCTOBER.
THANK YOU. >> VIAGRAN: THANK YOU, CAT, FOR THAT PRESENTATION. I AM -- I'M REALLY -- IN THE SAFE STREETS FOR ALL, I THINK I'M REALLY INTERESTED IN THE FACT THAT WE MAKE SURE THAT THOSE -- THAT WE'RE TALKING TO, WE UNDERSTAND THAT WE'RE GOING TO GET -- NEED THEM TO KNOW THE COMMUNITY, ESPECIALLY OUR CYCLIST COMMUNITY.
THEY HAVE A LOT TO SAY IN TERMS OF WHAT THEY FEEL IS SAFE AND WHAT'S NEEDED, AND I WANT TO MAKE SURE THAT THEY'RE KIND OF PLUGGED IN WITH THEM OR HAVE THE ABILITY, THAT THEY KNOW WHO THEY ARE AND WHERE THEY'RE GOING AND WHERE THEY KIND OF RIDE FOR THAT.
SO I LOOK FORWARD TO YOU GUYS GETTING THE OUTREACH OUT THERE AND THE EVALUATION VOTING MEMBERS REALLY FINDING THAT RIGHT FIT FOR THE COMMUNITY BECAUSE WE HAVE SO MANY CYCLISTS OUT THERE, SO MANY PEOPLE THAT ARE WALKING MORE, AND THEN ARE USING OUR PUBLIC TRANSPORTATION. SO THANK YOU FOR THAT. DO WE HAVE ANY OTHER DISCUSSION REGARDING THIS ISSUE? NO DISCUSSION? DID WE NEED A MOTION ON THIS? OKAY.
THANK YOU. >> THANK YOU. >> VIAGRAN: ALL RIGHT.
WE'RE MOVING ON. ITEM NUMBER 10. IS THERE A -- MADAM
CLERK, CAN YOU READ THE CAPTION FOR ITEM 10. >> CLERK: A BRIEFING ON THE RELEASE OF A SOLICITATION FROM QUALIFIED VENDORS TO PROVIDE THE SAN ANTONIO POLICE DEPARTMENT WITH INSTALLATION AND STORAGE SERVICES OF BALLISTIC GLASS WISHEDS AND BALLISTIC GLASS SIDE WINDOW PANELS IN THE ESTIMATED TOTAL VALUE OF $6,370,000 FOR THREE YEARS WITH 2, 1 YEAR
OPTIONS TO RENEW VIE THE FLOOR IS YOURS. >> THANK YOU.
MY NAME IS RICK RILEY. I'M THE ASSISTANT DIRECTOR OF SAN ANTONIO POLICE DEPARTMENT, AND TODAY I'LL BE PRESENTING A PRESOLICITATION BRIEFING ON THE INSTALLATION OF STORAGE AND BALLISTIC GLASS.
THE SAY POLICE DEPARTMENT WILL ISSUE A REQUEST FOR COMPETITIVE PROPOSALS SEEKING VENDORS TO PROVIDE INSTALLATION AND STORAGE SERVICES TO PROVIDE BALLISTIC WINDSHIELDS AND SIDE WILDERNESSES FOR ALL VEHICLES. -- SUBSEQUENTLY ON AVERAGE, 200 VEHICLES PER YEAR. THE PROPOSED TERM IS FOR THREE YEARS WITH TWO, 1-YEAR OPTION. ESTIMATED VALUE IS $6.37 MILLION TOTAL.
FUNDING SOURCE THROUGH THE GENERAL FUND. THERE IS NO CURRENT CONTRACT IN PLACE, SO THERE WOULD BE A NEW CONTRACT.
AS PART OF THE GOVERNMENT PURCHASING CODES, WE REACHED OUT TO GLASS AND SUPPLY VENDORS AS WELL AS INSTALLATION VENDORS.
86 OF THOSE TOTAL. WE HAD TWO THAT WE TARGETED FOR OUTREACH ADVERTISING THROUGH TVSA HEART BEAT, ET CETERA. THE EVALUATION MEMBERS CONSISTED OF DEPUTY MANAGER. ASSISTANT ( INDISCERNIBLE ) AND MR. FLORES FOR THE ASSISTANCE DIRECTOR FOR BUILDING SERVICE DEPARTMENT AND MYSELF. EVALUATION CRITERIA YOU SEE THERE. EXPERIENCED BACKGROUND AND CRITERIA AT 35 POINTS. PROPOSED PLAN 25 POINTS. SMALL BUSINESS AND MINORITY WOMEN ENTERPRISE AT 10 POINTS A PIECE.
THERE IS NO LOCAL PREFERENCE PROGRAM OR VETERAN OWNED PROGRAM AS BENEATH ONE OF THOSE TYPES OF BUSINESSES EXIST IN THIS SPACE.
GOAL-SETTING COMMITTEE FOR THIS INCLUDES MYSELF.
MS. MATA, THE ASSISTANT DIRECTOR FOR PARKS AND REC.
ECONOMIC DEVELOPMENT, AND ONE CITIZEN MEMBER. YOU'LL SEE THE APIS THERE SUBMITTED FOR SMALL, MINORITY, AND WOMEN-OWNED PRICES FOR THE SCOPE OF WORK. VENDING REGISTRY AND PROJECTS OF SIMILAR NATURE AS FAR AS OUR TIMELINE GOES, WE'RE HERE TODAY FOR THE
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PRESOLICITATION BRIEFING, ANTICIPATED RELEASE DATE OF MAY OF 2024.IT IS DUE -- PROPOSALS ARE DUE JULY 9 OF 2024. WE'LL EVALUATE IN AUGUST.
WE'LL BE BACK HERE IN FRONT OF AUDIT AND COMMITTEE IN SEPTEMBER OF 2024 FOR POST SOLICITATION BRIEFING AND THEN FINAL CONSIDERATION OF CITY COUNCIL CONSIDERATION IN SEPTEMBER OF 2024. THAT CONCLUDES MY BRIEF, AND I'M AVAILABLE FOR ANY
QUESTIONS. >> VIAGRAN: THANK YOU. RICK.
I THINK WE WILL HAVE QUESTIONS BECAUSE THIS WAS SOMETHING THAT DID COME UP IN THE COUNCIL AND OUR OFFICER SAFETY AND OUR PUBLIC SAFETY IS OF TOP CONCERN. SO I'M GOING TO LET COUNCILMAN COURAGE START
OFF. >> COURAGE: THANK YOU. HOW MANY VEHICLES TODAY
HAVE BALLISTIC WINDOWS? >> NONE OF OUR VEHICLES TODAY HAVE BALLISTIC
GLASS PROTECTION, COUNCILMEMBER. >> COURAGE: OKAY.
SO THIS IS AN ONGOING PROCESS THAT'LL COMPLETE FIVE YEARS TO COMPLETE.
>> ROUGHLY. ABOUT 500 VEHICLES A YEAR.
700 ANYWHERE FLEET. UNFORTUNATELY, BALLISTIC GLASS CAN'T BE REUSED SO WHEN A VEHICLE IS DECOMMISSIONED, WE'LL HAVE TO REINSTALL NEW
GLASS. >> COURAGE: I SEE. OKAY.
AND I HAD ONE QUESTION ABOUT THE TEAM GOAL SETTING MEMBERS.
YOU HAVE A CITIZEN MEMBER. HOW DO YOU GET A CITIZEN MEMBER ON A -- ON A COMMISSION LIKE THIS? IS THERE A LIST OF PEOPLE THAT VOLUNTEERED AND YOU JUST PICKED FROM THEM OR.
>> I'M GOING TO ASK MICHAEL. >> COURAGE: JUST CURIOUS.
>> SURE. SO WE RELEASE AN OPPORTUNITY, PEOPLE APPLY, AND THEN WE TAKE THEM TO THE EWDC COMMITTEE AND THEN FROM
THERE, TO A SESSION FOR APPROVAL. >> COURAGE: OKAY.
JUST -- I HADN'T SEEN AN APPOINTMENT TO SOMEBODY TO SERVE ON A GOAL-SETTING COMMITTEE COME BEFORE US BEFORE, SO MAYBE I JUST MISSED IT. ANYWAYS, YEAH, THIS WAS A BIG ISSUE IN OUR BUDGET, AND WE DID WANT TO GO AHEAD AND TAKE CARE OF THIS.
SO I'M GLAD TO SEE US MOVING FORWARD. WHEN DO WE THINK WE'LL BE GETTING THE FINAL -- IN OCTOBER THE CONTRACT WOULD START.
>> YES, COUNCILMAN. WE WILL PRESENT IT TO CITY COUNCIL IN SEPTEMBER OF 2024 WITH A CONTRACT START DAY OF OCTOBER 21 OF 2024.
>> COURAGE: HOW LONG DOES IT TAKE TO DO ONE VEHICLE? DO WE KNOW?
>> ROUGHLY -- THEY COULD DO TWO TO THREE VEHICLES A DAY, SO A LENGTHY PROCESS, BUT WE'LL HAVE THOSE VEHICLES LINED UP AND READY TO GO.
>> COURAGE: OKAY. GOOD. THANK YOU VERY MUCH,
CHAIR. >> VIAGRAN: THANK YOU. AND FOR THE RECORD, OUR COMMITTEE MEMBER DR. TREVINO HAS ARRIVED. ANY OTHER DISCUSSION.
COUNCILMAN WHYTE. >> WHYTE: YEAH. I WANT TO SAY VERY PLEASED WE GOT THIS IN LAST YEAR'S BUDGET AND I HOPE IN FUTURE BUDGETS IF THERE'S ADDITIONAL RESOURCES NEEDED TO KEEP OUR OFFICERS SAFE THAT WE CONTINUE TO PROVIDE FOR THAT IN FUTURE BUDGETS.
THANKS. >> VIAGRAN: ANY OTHER COMMENTS? WELL, THANK YOU.
I THINK THE ONLY QUESTION I HAVE IS IT IS FOR FIVE YEARS.
WHEN DO WE SEE THE FIRST VEHICLES HOPEFULLY GETTING COMPLETED, IF WE -- IF - EVERYTHING DONE AND WE APPROVE THIS IN OCTOBER, WHEN WILL WE SEE THE
VEHICLES KIND OF ROLL OUT? >> DEPENDING UPON HOW LONG CONTRACT NEGOTIATIONS LAST, MA'AM, I COULD SEE US HAVING VEHICLES ON THE ROAD THE FIST OF THE CALENDAR YEAR.
>> VIAGRAN: OKAY. THE OTHER THING, AS OUR VEHICLES AGE OUT AND TRYING TO GET THEM REPLACED, IT'S FIVE YEARS.
IF THE -- IN THE NEGOTIATIONS, I JUST WANT TO MAKE SURE WE GET TOP OF THE LINE BALLISTIC GLASS AND TECHNOLOGY IF IT CHANGES, IF WE SEE A THREAT COMING IN WITH SOME SORT OF WEAPONS OR BULLETS THAT, YOU KNOW, COULD BE HARMFUL, I WANT TO MAKE SURE WE'RE TAKING THAT INTO CONSIDERATION. SO WILL THAT BE PART OF
THE CONTRACT NEGOTIATIONS? >> YES, MA'AM, I'LL TAKE A NOTE OF IT AND MAKE SURE WE HAVE THE ABILITY TO UPGRADE, OBVIOUSLY THERE MAY BE A COST INVOLVED IN THAT AND WE'D HAVE TO GO BACK TO
COUNCIL FOR THAT. >> VIAGRAN: YEAH. AND I'M HOPING THE COUNCIL WOULD BE FOR THAT. IF WE'RE HERE, IF YOU HAVE TO COME BACK TO TALK ABOUT THIS. BUT I THINK, YOU KNOW, WE ALL HEAR STORIES FROM BIGGER CITIES ABOUT WEAPONS THAT OTHERS ARE USING, SO WHILE WE HAVEN'T SEEN THAT HERE AND WE HAVEN'T HAD -- WE HAVEN'T HAD BULLETPROOF, OUR BALLISTIC GLASS THERE.
SO I LOOK FORWARD TO MAKING SURE THAT WE GET IT DONE AND WE GET OUR OFFICERS PROTECTED. ANY OTHER COMMENTS? SO THIS WAS FOR BRIEFING
ONLY. >> YES, MA'AM. >> VIAGRAN: AND WE'LL MOVE ON TO
ITEM NUMBER 11. >> CLERK: ITEM 11 APPROVAL TO PROCEED WITH SCHEDULING SIX CONTRACTS FOR CITY COUNCIL CONSIDERATION TO PROVIDE THE PUBLIC WORKS DEPARTMENT WITH O
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ON-CALL CONSTRUCTION INSPECTION SERVICES RELATED TO THE 2022 BOND AND OTHER CITY-FUNDED PROJECTS IN THE ESTIMATED TOTAL VALUE OF $15 MILLION FOR 3 YEARS WITH 2, 1-YEAR OPTIONS TO RENEW.>> VIAGRAN: AND WE HAVE A PRESENTATION. >> YES.
GOOD AFTERNOON. MADAM, CHAIR. COMMITTEE MEMBERS.
I'M LOUISE MOTTOS. ASSISTANT DIRECTOR WITH PUBLIC WORKS, AND I'LL BE BRIEFING YOU ON THE POST CONSIDERATION OF THE ON CALL INSPECTION SERVICES. SO OVERVIEW OF THE SOLICITATION PUBLIC WORKS SLIEST AT A TIMED RFQ FOR UP TO SIX FIRMS TO PROVIDE ON-CALL INSPECTIONS FOR SERVICES SUCH AS STORM WATER, POLLUTION PREVENTION PLAN, ATTEND PRECONSTRUCTION MEETINGS, ATTEND ON-SITE CONSTRUCTION MEETINGS, AND MOST IMPORTANTLY, COMPLIANCE TO ALL CONSTRUCTION PLANS AND SPECIFICATIONS NOT ONLY FOR BOND-FUNDED PROJECTS BUT ANY OTHER CD PROJECT AS WELL. THIS WAS AN RFQ.
THE PROPOSED TERM IS FOR 3 YEARS WITH 2, 1-YEAR OPTIONS.
EACH CONTRACT ANNUALLY IS $500,000 FOR A TOTAL OF $15 MILLION.
ALL THE FUNDING SOURCES, IT VARIES, IT DEPENDS ON THE PROJECT, BUT AS YOU COULD IMAGINE, THESE TASK HOLDERS ARE FUNDED THROUGH THE PROJECT'S BUDGET. OUR CURRENT CONTRACTS EXPIRED TWO WEEKS AGO BACK IN APRIL THE 15TH. SO AS YOU CAN SEE ON YOUR SCREEN, WE HAD 9 PROPOSALS THAT WERE SUBMITTED EARLIER THIS YEAR, ALL WERE DEEMED RESPONSIVE, MOVED FORWARD FOR THE VALUATION. THE EVAL EVALUATION COMMITTEE MET AND HAVE RECOMMENDED TO PROVIDE THE SIX TOP RANKING FIRMS YOU SEE ON YOUR SCREEN.
THE TOP RANKING REQUIREMENTS. MWE, 20 POINTS, AND VETERAN OWNED ARE NOT APPLICABLE. SO THE DUE DILIGENCE, 378 AVAILABLE VENDORS. OUT OF THOSE 378, 28 ATTENDED THE PRESUBMIT TAL CONFERENCE, WE RECEIVED NINE PROPOSALS AND NO MATERIAL FINDINGS FOR THE MINIMUM REQUIREMENT REVIEW AND THE DUE DILIGENCE.
SO THIS IS A SHORT PRESENTATION BUT I'LL BE HAPPY TO ANSWER ANY
QUESTIONS. >> VIAGRAN: THANK YOU, LOUISE. DO ANY OF MY COMMITTEE MEMBERS HAVE ANY QUESTIONS? COUNCILMAN COURAGE.
>> COURAGE: I JUST WANT TO CLARIFY, IT SPECIFIES STORM WATER POLLUTION PREVENTION PLAN AS ONE OF THE AREAS THAT THEY WILL INSPECT, BUT I BELIEVE YOU ALSO SAID THEY WOULD INSPECT JUST ABOUT EVERY OTHER KIND OF PROJECT THAT THE CITY IS BUILDING OR CONTRACTED
FOR; RIGHT. >> THAT'S CORRECT. SO STORM WATER POLLUTION IS ONE OF MANY THINGS THEY INSPECT. A LOT OF OUR ARCHITECTS, CONSULTANTS, ENGINEERS, THEY DO PROVIDE CONSTRUCTION SERVICES.
WE UTILIZE THIS FOR MORE SPECIFIC AND DETAILED INSPECTIONS WHEN DOING ELECTRICAL, MECHANICAL, SO THIS INCLUDES A LOT OF FACILITY PROJECTS, SO POLICE STATIONS. COMMUNITY CENTERS, A LOT OF PARKS.
SO A LOT OF PARKS, WE HAVE PLAYGROUNDS, SO THESE PROVIDE WELDING INSPECTION. STRUCTURAL CONCRETE INSPECTION, ABOVE AND BEYOND WHAT A TYPICAL CONSULTANT WOULD HELP WITH.
>> I GUESS WHAT MAKES MENTION ABOUT THIS IF YOU SPECIFICALLY MENTION STORM WATER POLLUTION PREVENTION, THEN DOES THAT MEAN THAT ONE OF THESE SPECIALIZES IN THAT AREA? OR DO THEY ALL, IN
GENERAL, SPECIALIZE IN THAT. >> EACH CONSULTANT HAS THEIR EXPERTISE, BUT WHEN THEY PUT PROPOSALS TOGETHER THEY DO IT AS A TEAM, AND THE MAJORITY OF THE TIME, THERE'S SOMEBODY WITHIN THE TEAM
THAT CAN PROVIDE ALL OF THE SERVICES. >> COURAGE: OKAY.
THANK YOU, CHAIR. >> VIAGRAN: ANY OTHER DISCUSSION? ALL RIGHT. THIS IS A POST-SOLICITATION, SO CAN I GET A MOTION AND A SECOND TO APPROVE MOVING THESE CONTRACTS TO FULL
CITY COUNCIL? >> COURAGE: I MOVE THAT WE MOVE THIS ONE TO CITY COUNCIL FOR THEIR CONSIDERATION. WHITE WHITE SECOND. VIE VIE WE HAVE A MOTION AND A SECOND. ALL IN FAVOR SAY AYE.
>> VIAGRAN: ALL OPPOSED SAY NO. MOTION CARRIES. ALL RIGHT.
ANOTHER POST SOLICITATION. WE'RE MOVING ON TO ITEM 12. MADAM CLERK.
THE CAPTION. >> CLERK: ITEM 12 IS APPROVAL TO PROCEED WITH SCHEDULING ONE
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CONTRACT FOR CITY COUNCIL CONSIDERATION TO PROVIDE THE SOLID WASTE MANAGEMENT DEPARTMENT A SMART COLLECTION SYSTEM FOR AN ESTIMATED TOTAL VALUE OF 8,040,000 FOR FIVEYEARS WITH 3, TWO YEAR OPTIONS TO RENEW. >> VIAGRAN: ALL RIGHT.
AND WE HAVE A PRESENTATION. GO AHEAD THE FLOOR IS
YOURS. >> GOOD AFTERNOON. I'M NICKEL US, YOUR ASSISTANT DIRECTOR FOR SOLID WASTE DEPARTMENT. TODAY I'LL BE PRESENTING A POST SOLICITATION BRIEFING ON THE SMART COLLECTION SYSTEM.
THE SMART COLLECTION SYSTEM IS AN INTEGRATED TECHNOLOGY SOLUTION THAT ESSENTIALLY WOULD REPLACE ALL OF OUR PAPER MAPS.
SO AS OUR DRIVERS GO OUT TO COLLECT YOUR ROUTE, THEY'RE DOING THAT WITH A PAPER MAP, SO ESSENTIALLY, WE'RE DIGITIZING AND MOVING INTO THE, YOU KNOW, TECHNOLOGY REALM. SO ONE OF THE MAJOR ADVANTAGES IS IMPROVING CUSTOMER SERVICE, SO AS A DRIVER INSTEAD OF LOOKING AT THE MAP, YOU'LL HAVE A SCREEN, ALMOST LIKE PAC-MAN, SO AS YOU GO THROUGH AND SERVICE CUSTOMERS, YOU'LL KNOW WHICH YOU'VE SERVICED AND WHICH YOU HAVEN'T. SO THAT'LL SIGNIFICANTLY REDUCE THE NUMBER OF MISCOLLECTIONS, SO WE SHOULD SEE SAVINGS WITH REGARDS TO EFFICIENCIES AND NOT GOING BACK. IN ADDITION, WE GET A LOT OF NEW DRIVERS, AND ONE OF THE HARDEST THINGS IS LEARNING TO OPERATE THE EQUIPMENT, AND THEN ON TOP OF THAT, GIVING THEM A PAPER MAP AND SAYING GET ON TOP OF IT. NOW WITH THE SOLUTION IT'LL BE A LOT EASIER FOR THEM TO COLLECT THE ROUTE.
IT SHOULD REDUCE THE AMOUNT OF TIME FOR A DRIVER TO BECOME EFFICIENT. IT USUALLY TAKES 6 MONTHS.
THAT SHOULD DECREASE. IN ADDITION, WE'LL BE ABLE TO OPTIMIZE ROUTES FOR EFFICIENT PERFORMANCE. RIGHT NOW, WE STRUGGLE WITH TRUCKS. SOMETIMES WE GET DRIVERS THAT COME IN, HAVING TO MAKE ADJUSTMENTS ON THE FLY. THIS SYSTEM WILL HELP FACILITATE A LOT OF THE ON-THE-FLY CHANGES. AND SO THIS SOLICITATION WAS FOR A COMPETITIVE SEALED PROPOSAL, FIVE YEARS WITH 3, TWO YEARS OPTION. THE LIFE OF THE CONTRACT IS $8 MILLION.
THE FUNDING SOURCE IS SOLID WASTE, AND THIS WOULD BE A NEW CONTRACT FOR THE DEPARTMENT. WE GOT TWO RESPONSES. THE SCORING CRITERIA WAS FOR BACKGROUND, EXPERIENCE AND 30 POINTS. PROPOSED PLAN AT 50 POINTS AND PRICING AT 20 POINTS. THERE WAS A CLEAR AND CONCISE WINNER BETWEEN THE TWO VENDORS THAT DID SUBMIT, AND SO IN ADDITION TO THAT, THE SEC BETA PRAM WAS ALSO WAIVED. AND SO THE NUMBER OF VENDORS THAT WAS NOTIFIED AS A NUMBER OF OF THE SOLICITATION WAS IN EXCESS OF OVER 2,000.
FIVE DID PARTICIPATE IN THE PRESUBMIT TAL CONFERENCE, WE RECEIVED TWO RESPONSES, AND THERE WAS NO FINDINGS IN THE --N THE MINIMUM REVIEW REQUIREMENTS AS WELL AS DUE DILIGENT REVIEW. AND SO JUST A POINT OF PERSONAL REFLECTION, BEFORE I BECAME A GARBAGE MAN, I WAS A ā SOFTWAREENGINEER, SO I'M EXCITED TO IMPLEMENT AND LEVERAGE TECHNOLOGY IN THE BUSINESS, AND I THINK THIS'LL PUT US IN A NEW REALM OF BEING ABLE TO FIND EFFICIENCIES IN OUR SYSTEM. SO THANK YOU, IF YOU HAVE
QUESTIONS, I'M HERE TO ANSWER. >> VIAGRAN: THANK YOU.
SO I GUESS, THOUGH, THE ONE QUESTION I HAVE, TECHNOLOGY, AND EIGHT YEARS, THAT'S, IN TECHNOLOGY TERMS, THAT COULD BE A REALLY LONG TIME. SO WHAT ABOUT THE UPGRADES TO THE SYSTEM AND THE NEW SUBDIVISIONS COMING IN -- OR THE NEW HOMES BEING BUILT THAT MAY NEED SERVICES, AND ALSO THE HOMES WITH THE MOTHER-IN-LAW SUIT IN THE BACK THAT I'M SEEING. HOW ARE WE GOING TO TAKE
CARE OF THAT? >> SO THE FANTASTIC THING ABOUT THIS SOLUTION IS THE SUBSCRIPTION SERVICE. SO AS THE TECHNOLOGY EVOLVES, THE SOFTWARE EVOLVE, WE'LL BE ABLE TO GET THOSE UPDATES PRETTY MUCH ON THE FLY. WE'LL BE LEASING THE HARDWARE, WHICH IS ESSENTIALLY AN IPAD OR TABLET, THE HARDWARE IN THE TRUCK.
AS FAR AS UPDATING THE CUSTOMERS BECAUSE WE ARE SEEING CUSTOMERS LEFT AND RIGHT AND THAT'S ONE OF THE GREATER ADVANTAGES OF THE SOLUTION, IT'LL HELP US RECONCILE BILLING, AND SO AS WE SEE NEW SUBDIVISIONS, MOTHER-IN-LAW SUIT IN THE BACK, WE'LL BE ABLE TO COMPARE THAT WITH BILLING DATA AND COLLECTING THE REVENUE
WE'RE ENTITLED TO. >> VIAGRAN: OKAY. THANK YOU.
IS THERE ANY QUESTIONS? ANY DISCUSSION FROM MY COMMITTEE MEMBERS? IF NOT, THIS -- I NEED A -- IS N TO MOVE THIS FORWARD TO THE NEXT -- TO CITY
COUNCIL? FULL CITY COUNCIL? >> I MOTION.
>> VIAGRAN: I HAVE A MOTION. DO I HAVE A SECOND? I HAVE A MOTION AND A SECOND. IF THERE ISN'T ANY OTHER DISCUSSION.
MOTION CARRIES. ALL RIGHT. NOW WE'RE MOVING ON TO ITEMS
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FOR STAFF BRIEFING. ITEMS 13 AND 14 ARE STAFF BRIEFING.MADAM CLERK. PLEASE READ THE CAPTION FOR ITEM 13.
>> CLERK: ITEM 13 IS A BRIEFING ON THE RESULTS OF THE FISCAL YEAR 2023 EXTERNAL FINANCIAL
AUDIT AND PRESENTATION OF RELATED REPORTS. >> GOOD AFTERNOON.
MY NAME IS MEL INIQUITITON, ASSISTANT FINANCE DIRECTOR, AND BEFORE I GO IN, THIS'LL BE A TAG TEAM PRESENTATION WITH MYSELF AND AMANDA EVES, WHO'S THE ENGAGEMENT PARTNER. SHE'LL INTRODUCE HER TEAM MEMBERS. WE HAVE SOME OF THE SUBCONTRACTORS, BUT FIRST, I'LL INTRODUCE SOME OF THE KEY MEMBERS OF OUR CITY STAFF TEAM WHO WORKED DILIGENTLY TO GETTING THIS EXTERNAL AUDIT DONE, STARTED WITH VICTORIA RADAR, WHO'S OUR CONTROLLER, KIMBERLY NOON YESES, OUR MANAGERS, AND JAY BLACKWELL, OUR GENERAL LEDGER MANAGER.
THE STAFF HAS BEEN CORE TO THE CITY'S AUDIT FOR WELL OVER 10 YEARS NOW, AND YOU'LL SEE IT IN THE PERFORMANCE RESULTS AS WE GO THROUGH AND HAVING THIS TEAM HERE SO THE EXTERNAL AUDIT REQUIREMENTS, JUST A QUICK LITTLE BRIEFING ON IT, IT'S REQUIRED UNDER THE PROVISIONS OF THE CITY CHARTER, IT PROVIDES A TRUE AND FAIR VIEW OF THE FINANCIAL POSITION OF THE CITY. IT'S REQUIRED BY OUR STATE STATUTE, AND IT ENSURES THAT THE RECORDS ARE PROPERLY MAINTAINED, FREE FROM MATERIAL MISSTATEMENTS AND COMPLY WITH THE ESTABLISHED COMMENTS, PRINCIPLES, AND ACCOUNTING STANDARDS. THE EXTERNAL AUDIT CONTRACT FOR THIS WAS AWARDED THIS CONTRACT, 2022. THIS IS THE SECOND YEAR OF THEIR CONTRACT, IT IS A THREE YEAR TERM WITH TWO SEPARATE ONE-YEAR EXTEN EXTENSIONS.
THIS PRESENTATION HERE IS GOING TO GO OVER THE RESULTS OF THE 2023 EXTERNAL AUDIT AND DISCUSS THE REQUIRED COMMUNICATIONS BETWEEN FORBUSINESS AND THE COMMITTEE THE DELIBERATES OF THE AUDIT IS THE ANNUAL COMPREHENSIVE REPORT.
THE REPORT ON THE FEDERAL OR STATE GRANTS OTHERWISE KNOWN AS SINGLE AUDITS.
THE FINANCIAL REPORT OF -- OUR TCQ AGREED UPON PROCEDURES AND REPORT OF CONTROLS, WHAT'S TYPICALLY CALLED THE MANAGEMENT WILL THE LETTER WHEN APPLICABLE, I'LL TELL YOU THIS YEAR WE DON'T HAVE A MANAGEMENT LETTER, WHICH IS A GOOD THING BECAUSE THERE'S NO FINDINGS. SO THIS IS A PRINTED VERSION, WHICH WE DON'T USUALLY PRINT ANYMORE, BUT I WANTED TO SHOW YOU, THIS IS THE DELIVERABLES, IT'S ONLINE, AND SO ALL OF THOSE REPORTS WITH THE EXCEPTION OF THAT INTERNAL CONTROL ARE INCLUDED IN THIS DOCUMENT, AND IT'S AVAILABLE FOR PUBLIC INPUT AND USAGE. SO THE INTERNAL CONTROL FINDINGS, AS YOU CAN SEE, OVER THE LAST SIX YEARS, WE'VE HAD NO FINDINGS, AND THAT IS A HUGE ACCOMPLISHMENT GIVEN THE COMPLEXITIES OF GASB STATEMENTS WE'VE INTRODUCED, INCLUDING LEASES TWO YEARS AGO AND THIS YEAR. AND ARRANGEMENTS, YOU HEARD SOLID WASTE TALK ABOUT AN EXAMPLE OF ONE, AND WE HAVE HUNDREDS ACROSS THE CITY WE HAVE TO IMPLEMENT AND REVIEW. IN ADDITION TO THE IMPROVEMENTS YOU'VE SEEN OVER THE YEARS, WE ALSO HAD SINGLE AUDIT REVIEW, AND WE HAD TWO FINDINGS THIS YEAR, THEY WERE BOTH RELATED TO THE SAME PROGRAM, WHICH I'LL LET AMANDA DISCUSS IN A COUPLE OF MINUTES, AND WE'VE PUT IN PLACE THE PROCESSES IN PLACE TO CORRECT THOSE ISSUES. I'LL TELL YOU, IT'S RELATED TO SMALL DEPARTMENT, NEW GRANT MONEY, AND SO IT'S JUST THE LEARNING CURVE WE'RE WORKING WITH THE DEPARTMENTS ON IN GENERAL. OOPS. I SKIPPED IT.
AND I REALLY WANTED TO JUST SPEND A COUPLE SECONDS TO THANK VICKY, JAY, ELIZABETH AND THEIR TEAMS. IF IT'S THEM AS WELL AS ALL OF THE DFAS, WHICH IS OUR DEPARTMENT FISCAL ADMINISTRATORS ACROSS THE CITY, DEPARTMENTS AND STAFF, IT'S THE WORK THEY DO IN AND OUT, THE CONTROLS AND PROCESSES THEY PUT IN PLACE THAT MADE THIS -- THE RESULTS OF THIS AUDIT WHAT IT IS, NOT JUST FOR THIS YEAR, BUT THE LAST SIX YEARS, AND I'M REALLY PROUD OF THIS TEAM.
WITH THAT, I'LL GO AHEAD AND HAND IT OVER TO AMANDA. >> THANK YOU, MELANIE, AND I WANT TO SAY THANK YOU TO THE CITY AND THE COMMITTEE. WE CERTAINLY APPRECIATE ET OPPORTUNITY TO PROVIDE YOU WITH OUR SERVICES AGAIN THIS YEAR, AND, YOU KNOW, I WANT TO ECHO WHAT MELANIE SAID. WE REALLY APPRECIATE THE TEAM'S HELP GETTING THROUGH THE AUDIT. YOU KNOW, AS YOU KNOW, THE CITY OF SAN ANTONIO IS A LARGE CITY. YOU HAVE -- YOU KNOW, YOU HAVE A LOT OF OPERATIONS AND THS QUITE INVOLVED, IT TAKES QUITE A BIT OF TIME AND MANPOWER FROM THE CITY, SO WE REALLY APPRECIATE IT WITH THE AUDIT. SO FIRST OF ALL, I'D LIKE TO INTRODUCE OUR TEAMING PARTNERS, WE HAVE SOME REPRESENTATIVES HERE TODAY WITH US.
[00:30:03]
THE AUDIT IS REALLY DONE BETWEEN US AND THESE FOUR TEAMING PARTNERS, THEY'RE AN INTEGRAL PART OF THE TEAM. SO TODAY WE HAVE WITH US TERRY BRITS FROM FRITZ AND ASSOCIATES. ROBERT J WILLIAMS. BOB WILLIAMS US WITH TODAY.SHARBA CAR MONA AND COMPANY. SO CHRIS CAR MONA. AND THEN OUR OTHER PARTNER IS ARMSTRONG BOND AND ASSOCIATES. OH, THERE YOU ARE.
YEAH. SO DEBBIE FRAZIER IS WITH US TODAY, SO WE APPRECIATE THEIR ASSISTANT IN GOING THROUGH THE AUDIT. YOU PROBABLY SAW WHEN WE WERE HERE FOR PLANNING. ERICA BROWN, SHE'S TRAVELING AND OUT OF THE COUNTRY, SO SHE SHE COULD NOT BE HEAR TODAY, BUT SHE'S STILL INVOLVED WITH THE AUDIT.
SO A SUMMARY OF THE AUDIT. SO WE CONDUCTED OUR AUDIT PROCEDURE STARTING LAST JUNE AND THEN ISSUED OUR REPORTS AT THE END OF MARCH, 2024. AN UNMODIFIED OPINION ON THE CITY'S FINANCIAL STATEMENTS THAT THEY ARE PROPERLY STATED IN ALL MATERIAL RESPECTS, AND, AGAIN, THIS IS AS OF SEPTEMBER 30, 2023, AND WE ALSO ISSUED A REPORT ON INTERNAL CONTROL OF FINANCIAL REPORTING IN ACCORDANCE WITH GOVERNMENTAL AUDIT STANDARDS AND THEN UNIFORM GUIDANCE AND TEXAS GRANT MANAGEMENT STANDARDS COMPLIANCE OPINIONS, SO THIS IS YOUR FEDERAL AND YOUR STATE SINGLE AUDIT REPORT.
SO WE ISSUED UNMODIFIED OPINIONS IN BOTH OF THOSE CASES AS TO WHETHER THE CITY COMPLIED WITH YOUR MATERIAL -- WITH YOUR MAJOR PROGRAMS, BOTH FEDERAL AND STATE IN ALL MATERIAL RESPECTS. SO A CLEAN REPORT ON THE CITY'S FINANCIAL STATEMENTS, HIGHEST LEVEL OF ASSURANCE THAT YOU WOULD RECEIVE, AND THE SAME TYPE OF REPORT ALSO ON YOUR COMPLIANCE. SO THE AUDIT DELIVERABLES -- AND MELANIE MENTIONED THESE EARLIER, SO I'M NOT GOING TO GO OVER THESE AGAIN, BUT THESE ARE THE DELIVERABLES THAT WE HAVE ISSUED AT THE END OF MARCH. I WILL POINT OUT THAT THAT REALLY LARGE -- OUT OF 500-PAGE SOMETHING REPORT THAT MELANIE HELD UP, THAT'S PREPARED BY THE CITY. OUR AUDIT REPORT IS IN THERE, BUT IT'S THREE PAGES. SO IT'S A REALLY LARGE, YOU KNOW, COMPLEX DOCUMENT THAT MEETS THE REQUIREMENTS, BUT THE CITY DOES PREPARE ALL OF THAT INFORMATION.
SO THERE ARE CERTAIN COMPONENT UNITS. SO, THE CITY, AGAIN, IS A LARGE, COMPLEX CITY, YOU HAVE A LOT OF MOVING PARTS, AND IN THE ACCOUNTING WORLD, WE CALL THOSE MOVING PARTS COMPONENT UNITS, THERE ARE SOME COMPONENT UNITS AUDITED BY FORVIS AND OTHERS BY OTHER FIRMS, AND YOU'LL SEE THOSE COMPONENTS REFERRED TO IN OUR AUDIT OPINION, BUT THIS IS JUST A SUMMARY TO SHOW YOU -- SO THE CITY HAS THREE FIDUCIARY COMPONENTS, TWO AUDITED BY OTHER FIRMS. 14 BLENDED COMPONENT UNITS.
FIVE AUDITED BY OTHER AUDITS. AND THEN 10 DISCREETLY PRESENTED COMPONENT UNITS, AND 4 AUDITED BY OTHER AUDITORS.
AND IF YOU LOOK CLOSELY, YOU'LL SEE A LISTING OF ALL OF THOSE COMPONENT UNITS AND WHICH FALL INTO THESE DIFFERENT CATEGORIES. SO THESE ARE OUR MAJOR PROGRAMS FOR SINGLE AUDIT TESTING, THESE ARE OUR FEDERAL PROGRAMS, SO HOME INVESTMENT PROGRAM, HIGHWAY PLANNING, COVID-19 EMERGENCY RENTAL ASSISTANCE.
THE COVID-19 CORONA VIRUS STATE AND RELIEF, AND THEN THE DISASTER GRANTS OR PUBLIC ASSISTANCE GRANTS, SO THESE PROGRAMS WERE DETERMINED TO BE MAJOR PROGRAMS AND TESTED THIS YEAR IN ACCORDANCE WITH UNIFORM GUIDANCE.
AND THEN THESE ARE YOUR STATE MAJOR PROGRAMS THAT WERE TESTED.
SO THE STD PREVENTION AND CONTROL GRANTS, TEXAS MILITARY PREPAREDNESS COMMISSION GRANTS, AND ALSO CHILD CARE MANAGEMENT SERVICES.
ONE THING I ALSO WANTED TO POINT OUT, AGAIN, BACK TO THE AKFER THAT MELANIE SHARED WITH YOU.
SO THERE IS ADDITIONAL INFORMATION IN THE AKFER TO MEET THE GOFA REQUIREMENTS THAT THE CITY INCLUDESES THAT NOT REQUIRED TO BE AUDITED, AND WE DO NOT AUDIT THAT INFORMATION, SO THIS IS JUST TELLING YOU WHAT THAT INFORMATION IS.
IT'S BASICALLY THE INTRODUCTORY SECTION, THE TRANSMIDDLE LETTER.
SOME OF THE SUPPLEMENTAL INFORMATION AND THE STATISTICAL INFORMATION IN THE BACK OF THE REPORT, AND SO YOU'LL SEE IN OUR REPORT THAT OUR OPINIONS DON'T COVER THAT SPECIFIC INFORMATION. HOWEVER, A PART OF DOING THE AUDIT AND READING THE REPORT, WE DO LOOK THROUGH THE ENTIRE -- WE AUDIT THE
[00:35:01]
REPORT AND THEN LOOK THROUGH ALL OF THESE SCHEDULES AS WELL TO SEE IF ANYTHING STICKS OUT OR CONCHAE DISTRICTS WITH ANYTHING WE'VE SEEN IN THE AUDIT.SO OUR REQUIRED COMMUNICATIONS, SO THE SCOPE OF THE AUDIT, BOTH FOR THE FINANCIAL STATEMENT AUDIT AND THE COMPLIANCE AUDIT IS REASONABLE ASSURANCE. SO WE ARE EXPRESSING AN OPINION AND PROVIDING REASONABLE ASSURANCE THAT YOUR FINANCIAL STATEMENTS ARE PROPERLY STATED IN ACCORDANCE WITH GAB, AND YOU COMPLIED WITH YOUR FEDERAL AND STATE GRANT REQUIREMENTS. AND WHAT THAT MEANS IS WE'RE NOT TESTING EVERY TRANSACTION. WE'RE PERFORMING RISK ASSESSMENT, CHOOSING SAMPLES TO TEST, TESTING HIGHER-DOLLAR ITEM, HIGHER RISK ITEMS, BUT WE'RE NOT TESTING, AGAIN, EVERY TRANSACTION THAT GOES THROUGH THE CITY. AND ALSO, AS FAR AS YOUR RESPONSIBILITY, DO OUR -- WE JUST WANT TO REMIND THE COMMITTEE THAT OUR AUDIT DOES NOT RELIEVE MANAGEMENT AND THE COMMITTEE'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS. OUR COMMUNICATION THAT WE'RE SHARING HERE WITH YOU TODAY ARE REQUIRED AUDIT COMMUNICATIONS INTENDED, YOU KNOW, FOR THE CITY AND OTHER --E AND OTHERS WITHIN THE CITY. HOWEVER, WE DON'T PREPARE OR CONDUCT OUR AUDIT TO DETERMINE AND FIND THINGS TO REPORT TO THE CITY.
THESE ARE THINGS THAT WE'VE SEEN AS WE'VE BEEN CONDUCTING THE AUDIT THAT OUR -- THAT THE AUDITING STANDARDS REQUIRE US TO REPORT TO YOU AND THEN GROUP AUDITS IS JUST WHAT WE TALKED ABOUT PREVIOUSLY AS FAR AS COMPONENT UNITS THAT ARE NOT AUDITED BY FORVIS, AND WE ARE INDEPENDENT OF THE CITY, AND SO MEET ALL OF THOSE REQUIREMENTS IN T THAT REGARD SO YOUR SIGNIFICANT ACCOUNTING POLICIES ARE IN NOTE 1 TO THE FINANCIAL STATEMENTS, SO I'LL POINT YOU TO THAT NOTE TO REALLY GET A GOOD UNDERSTANDING OF WHAT'S REPORTED IN YOUR FINANCIAL STATEMENTS AND THE DIFFERENT ACCOUNTING POLICIES UNDERLINING THOSE BALANCES AND DISCLOSURES. WE NOTED NO UNUSUAL POLICIES OR METHODS IN THE CITY'S FINANCIAL STATEMENTS. YOUR FINANCIAL STATEMENTS DO INCLUDE ACCOUNTING ESTIMATES, WHICH IS TYPICAL OF ANY SET OF FINANCIAL STATEMENTS, AND SO YOUR SIGNIFICANT ACCOUNTING ESTIMATES IN THE FINANCIAL STATEMENTS WOULD INCLUDE THE FAIR VALUE OFME INVESTMENTS, NET PENSION LIABILITIES AND NET O PH.D. LIABILITIES, SELF-ASSURANCE AND OCCURRED BUT NOT REPORTED LIABILITIES, SO YOUR RISK-TYPE LIABILITIES. AND THEN FINANCIAL STATEMENT DISCLOSURES, THE MORE SIGNIFICANT FINANCIAL STATEMENT DISCLOSURES WE WOULD POINT YOU TO WOULD BE NOTE 10 AND 11, AGAIN THAT'S YOUR PENSION AND NOTE DISCLOSURES, SO THE ESTIMATES AND DIFFERENT ASSUMPTIONS THAT GO INTO DETERMINING THOSE BALANCES. NOTE 13 IS COMMITMENTS AND CONTINGENCIES.
NOTE 14 IS YOUR LEASE AND SUBSCRIPTION BASED ITSELF ARRANGEMENTS MELANIE MENTIONED EARLIER. SO THE PIECE OF THAT NOTE IS NEW THIS YEAR AS A RESULT OF IMPLEMENTATION OF GASB96, SO YOU'LL SEE NEW NUMBERS AND DISCLOSURES IN 14.
NOTE 16. THIS IS YOUR RISK FINANCING NOTE.
AND THEN NOTE # 22 REGARDING SUBSEQUENT EVENTS. AND THEN THE LAST BULLET, JUDGMENT ABOUT THE QUALITY OF THE CITY'S ACCOUNTING PRINCIPLES.
SO THE ONLY THING WE HAVE TO REPORT HERE IS THAT THE CITY DID IMPLEMENT GASB96 THIS YEAR, WHICH DID RESULT IN CHANGES IN THE FINANCIAL STATEMENTS, IN THE NOTES TO THE FINANCIAL STATEMENTS, REGARDING THOSE SUBSCRIPTION-BASED IT ARRANGEMENTS. SO AS WE'RE CONDUCTING OUR SINGLE AUDIT, THE STATE AND THE FEDERAL SINGLE AUDIT, AND THIS SPECIFICALLY RELATES TO THE STATE, WE DO CONSIDER INTERNAL CONTROL OVER COMPLIANCE IN ORDER TO PLAN OUR TEST, AND SO WE'RE NOT TESTING. WE'RE NOT EXPRESSING AN OPINION ON INTERNAL CONTROL OVER COMPLIANCE, BUT WE DO CONSIDER THAT AS WE'RE PERFORMING OUR SINGLE AUDITS. AND SO THESE ARE -- MELANIE MENTIONED THE TWO FINDINGS WE HAD RELATED TO THE STATE PROGRAM. SO WE IDENTIFIED TWO DEFICIENCIES IN THE TEXAS MILITARY PREPAREDNESS COMMISSION GRANT, THE DEFENSE ECONOMIC ADJUSTMENT GRANT. SO THERE WERE TWO FINDINGS, THE FIRST ONE -- AND THESE ARE COMPLIANCE REQUIREMENTS WE TESTED.
SO THE FIRST IS RELATED TO CASH MANAGEMENT AND REPORTING.
AND WE ARE -- THIS IS A SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL, AND THE
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FINDING WAS THAT THE SAME INDIVIDUAL THAT WAS PREPARING THE REQUIRED REPORTS THAT HAVE TO GO TO THE STATE WAS ALSO REVIEWING THEM, AND SO YOU DIDN'T HAVE THAT SECOND LEVEL OF REVIEW, AND WE RECOMMEND THE CITY PUT IN PLACE A SECONDARY REVIEWER TO THOSE REPORTS AND EXPENSES PRIOR TO THEM BEING SUBMITTED.AND THEN A SECOND ONE FALLS UNDER SUBRECIPIENT MONITORRINGS, AND THIS IS SIGNIFICANT DISABILITYSY IN OTHER NONCOMPLIANCE, AND WHAT THAT MEANS IS THAT IT'S NON-COMPLIANCE WITH THE REQUIREMENT UNDER THE GRANT, BUT IT IS NOT MATERIAL NON-COMPLIANCE, SO IT DID NOT CAUSE OUR REPORT TO CHANGE, WE'RE STILL EXPRESSING A MODIFIED OR CLAIMED OPINION, BUT IT'S JUST ANOTHER FINDING, BASICALLY.
AND SO IN THIS CASE -- SO THE CITY IS REQUIRED TO MAKE PAYMENTS TO SUBRECIPIENTS WITHIN 30 DAYS AFTER THE INVOICE WAS RECEIVED UNDER THE PROMPT PAYMENT ACT, AND SO THERE WERE TWO REQUESTS FOR REIMBURSEMENT UNDER THIS GRANT THAT WERE NOT PAID WITHIN THE 30 DAYS, SO THAT'S WHAT THAT FINDING IS RELATED TO.
AND THEN THIS IS THE LAST SLIDE I HAVE. SO, AGAIN, THESE ARE ALL OF THE CITY'S COMPONENT UNITS. SO THE DISCREETLY PRESENTED COMPONENT UNITS AND BLENDED COMPONENT UNITS, AND IT'LL TELL YOU WHICH ONE FORVIS AUDITED AND WHICH ONES ARE AUDITED BY OTHER AUDITORS. AND THEN LOOKING FORWARD, TALKING ABOUT FUTURE GASBS, SO THERE ARE FOUR GASBS THAT HAVE BEEN ISSUED THAT THE CITY WILL IMPLEMENT IN 2024 AND GOING FORWARD, SO I JUST WANTED TO KIND OF SHARE THESE WITH YOU TO HAVE THEM ON YOUR RADAR.
SO GASB99 IS AN OMNIBUS STANDARD, AND AN OMNIBUS STANDARD IS KIND OF CLARIFYING AND CLEANING UP, IF YOU WILL, PREVIOUS GASB STANDARDS, SO IT WILL HAVE -- IT COULD HAVE EFFECTS ON VARIOUS DIFFERENT AREAS OF THE CITY'S FINANCIAL STATEMENTS. GASB100 RELATES TO HOW YOU REPORT ANY ACCOUNTING CHANGES, SUCH AS CHANGES IN ACCOUNTING PRINCIPLES OR IF YOU HAD ERROR CORRECTIONS.
GASB101 RELATES TO HOW YOU REPORT COMPENSATED ABSENCES, AND THEN GASB102 RELATES TO RISK DISCLOSURES, SO YOU'LL SEE THESE IMPLEMENTED BY THE CITY IN FUTURE YEARS INDICATED ABOVE. AND THAT IS THE END OF MY PRESENTATION.
I'D BE HAPPY TO ANSWER ANY QUESTIONS ANYONE HAS. >> VIAGRAN: ALL RIGHT.
THAT WAS A LOT OF MATERIAL. I -- I JUST WANT TO SAY -- I -- THANK YOU. IT LOOKED LIKE A LOT OF HARD WORK JUST FROM YOUR APPENDIX WITH ALL OF THE -- NOWS OF QUESTIONS FOR BUDGET, BEN, REGARDING ALL OF OUR BLENDED COMPONENT UNITS. SO THANK YOU FOR THAT, THANK YOU FOR THE PRESENTATION. I DON'T HAVE ANY QUESTIONS. I'M GOING TO SEE IF ANY OF MY COMMITTEE MEMBER
HAVES ANY QUESTIONS? NO? >> JUDY IS THE EXPERT.
>> WELL, I WOULD SAY CONGRATULATIONS FOR NOT HAVING ANY DEFICIENCIES IN THE INTERNAL CONTROLS CONSIDERING THE SIZE OF THE ORGANIZATION, SO KUDOS TO THE STAFF. EVERYBODY ENGAGED BECAUSE IT'S A LOT OF WORK. YOU KNOW, I THINK THE ONLY QUESTION I WOULD HAVE IS WHEN YOU MENTION THE ONE FINDING ON THE PAYMENTS WITHIN THE 30 DAYS, DID WE INCREASE THE -- THOSE THAT WE LOOKED AT BECAUSE IT WAS TWO. LIKE I DON'T KNOW, WAS IT TWO OUT OF FIVE OR TWO OUT OF TWENTY? THAT WOULD MAKE A DIFFERENCE FOR US, BUT I
DON'T KNOW IF YOU HAVE THAT INFORMATION. >> IT WAS A SMALLER
SO I DON'T THINK WE ENDED UP INCREASING THE SAMPLE, BUT IT WAS THE
NUMBER OF PAYMENTS. >> BECAUSE IT WAS IN MATERIAL.
>> YEAH. >> OKAY. THANK YOU. I APPRECIATE
>> VIAGRAN: THANK YOU, JUDY, THANK YOU FOR THOSE QUESTIONS. ANYONE ELSE?
KEVIN YOU WANT TO CHIME? >> CHAIRMAN, CAN I MAKE A COUPLE OF COMMENTS.
ONE, I WANT TO THANK AYMAN DARKS FORVIS AND THE ENTIRE AUDIT TEAM ON THIS. IT'S A LOT OF WORK, A LONG AUDIT PROCESS, DOING A GREAT JOB LOOKING AT WHAT WE DO IN COMPLIANCE.
SO I APPRECIATE ALL OF YA'LL'S WORK. I WANT TO THANK TROY.
MELANIE, VICKY, ELIZABETH, KIM, JAY. THEY DO OUTSTANDING WORK, THE ENTIRE FINANCE TEAM, IT'S HARD TO GET A SENSE OF HOW COMPLEX THE AUDIT IS AND THE FINANCIAL REPORT FROM 18 OR 20 SLIDES, BUT WHEN
[00:45:02]
YOU SAW THE GASB STANDARDS AT WHAT ARE WE AT? 103, 104, THEY NEED TO STOP OR SLOW DOWN A BIT, I THINK, BUT THEY KEEP ISSUING, IT'S GETTING MORE COMPLEX. YOU LOOK AT THE SIZE OF THE CITY ORGANIZATION, ALL OF THE THINGS THAT WE DO, WE'RE A COMPLEX ORGANIZATION, YOU LAYER IN THE ACCOUNTING STANDARDS, YOU LOOK AT THE AMOUNT OF FEDERAL AND STATE FUNDING WE'VE GOTTEN OVER THE PAST COUPLE OF YEARS, I THINK TO END UP AT A PLACE WHERE WE'VE GOT NO INTERNAL CONTROL FINDINGS FOR SIX YEARS, MINIMUM SINGLE AUDIT FINDINGS, THAT'S REALLY A TESTAMENT TO THE STAFF, THE WORK THAT THEY DO ON THE FRONT END TO MAKE SURE THAT WE'RE IN FRONT OF ALL OF THOSE COMPLIANCE ISSUES, AND THAT WORK IS ALL THEM. SOY APPRECIATE IT.THANK YOU, GUYS, SO MUCH. GREAT WORK.
CONGRATULATIONS. >> COURAGE: I'M AMAZED BY THE SIZE OF THE DETAILED BOOK.
AND YOU NEED SOMETHING TO DO. I RECOMMEND IT HIGHLY.
>> VIAGRAN: KEVIN. >> AS THE INDEPENDENT AUDITOR, I WANT TO SAY HOW BIG OF A DEAL IT IS. I WILL READ THAT DOCUMENT.
I THINK IT WAS A GREAT PRESENTATION. I'M HOOKED ON EVERY BIT OF IT BECAUSE I'M A GEEK. BUT TO GO SIX YEARS WITH NO FINDINGS IN AN ORGANIZATION THIS BIG IS REALLY UNHEARD OF, ESPECIALLY A CITY ORGANIZATION, THE TWO STATE FINDINGS, THOSE WERE -- YOU KNOW, THOSE FINDINGS WE HAVE TO -- I HAVE TO REPORT THINGS LIKE THAT IN INTERNAL AUDIT ALSO, BUT THOSE WERE FIXED ALREADY, VERY EASY TO FIXED, BUT JUST TO EMPHASIZE FROM MY PERSPECTIVE.
HOW BIG OF A DEAL IT IS TO GO SIX YEARS. >> VIAGRAN: THANK YOU.
ANYBODY ELSE? THIS WAS JUST FOR BRIEFING; CORRECT? WE DON'T MOVE THIS TO FULL COUNCIL? OKAY.
>> THAT'S CORRECT. >> VIAGRAN: BUT WE HOPE THEY ALL READ IT.
>> IT IS A BRIEFING, AND IT'S POSTED ON OUR WEBSITE, IT'S ALREADY UP
AND POSTED. >> VIAGRAN: WELL THANK YOU SO MUCH FOR ALL OF YOUR HARD WORK.
I -- THE CITY STAFF CONTINUES TO MEET OUR EXPECTATIONS AND EXCEED OUR EXPECTATIONS ON SOME THINGS, AND LIKE I SAID, YOUR APPENDIX, I SAID THAT'S WHERE OUR PROBLEM CHILDREN ARE, BEN, THAT'S WHERE
THEY ARE. THANK YOU. >> THANK YOU.
>> VIAGRAN: THE NEXT MEETING IS SCHEDULEED -- OH. DO WE HAVE ONE MORE
ITEM? >> ONE MORE ITEM. >> VIAGRAN: ITEM 14.
WAS N THAT NOT DONE TOGETHER? OKAY.
ITEM 14. >> CLERK: ITEM 14 IS THE STATUS UPDATE OF OUTSTANDING MANAGEMENT
ACTION PLANS FOR PRIOR AUDIT RECOMMENDATIONS. >> ALL RIGHT.
THANK YOU. AND JUST, AGAIN, THIS IS SOMETHING THAT WE DO AS THE INTERNAL AUDITOR, WE FOLLOW UP ON ALL OF THE AUDIT RECOMMENDATIONS THAT ARE MADE AND WE COME TO THE COMMITTEE WITH THOSE RESULTS EVERY THREE OR FOUR MONTHS, SO IT'S ONE OF THOSE TIMES, AND, AGAIN, ALL OF THOSE RECOMMENDATIONS WE GIVE IN OUR REPORTS, WE GIVE A RESPONSE WITH ACTION PLAN, TARGET DATES AND WHAT THEY'LL DO. WE GO BACK AND FOLLOW UP ON THOSE TO ENSURE IT WAS IMPLEMENTED AND IMPLEMENTED EFFECTIVELY IN THE WAY IT WAS INTENDED. YOU'VE SEEN THIS BEFORE, BUT IN THIS REPORTED, MANAGEMENT GIVES US AN ASSERTION, ARE THEY COMPLETE? BEHIND? ON SCHEDULE? JUST THE TARGET DATE HASN'T COME IN, AND THEN WE'LL COME UP AND VERIFY WHAT THEY SAID. BASICALLY, IN THIS REPORT, BLUE AND GREEN ARE GOOD, RED IS NOT, AND YELLOW IS SOMETHING WE'RE WORKING ON.
BUT HERE IS THE SUMMARY FOR THIS REPORT. WE'RE TRACKING 51 RECOMMENDATIONS. THE MANAGEMENT ASSERTION OF THOSE 51, 36 ARE COMPLETE, 12 ARE ON SCHEDULE, AGAIN, MEANING THE DUE DATE HASN'T COME UP YET, SO WE'RE MANAGING THOSE, AND THEN THREE BEHIND SCHEDULE, AND IN THE REPORT, WE HAVE THE NEW TARGET DATES, AND THOSE THREE HAPPEN TO BE ADMINISTRATIVE IN NATURE, WE'RE WAITING ON APPROVALS ON ADMINISTRATIVE DIRECTORS TO CLOSE THOSE OUT.
AND THEN IF YOU TAKE THOSE 36 WHERE THEY'VE ATTESTED THEY'VE COMPLETED THEM, WE'VE GONE THROUGH AND YA'LL LOOKED AT THOSE, WE VERIFIED 22 OF THEM. VERIFIED WITHOUT EXCEPTION, MEANING EVERYTHING IS GOOD. WE DID FIND THAT THREE OF THEM IN THIS GO-AROUND, THERE WERE ADDITIONAL EXCEPTIONS, SO THEY WERE NOT IMPLEMENTED COMPLETELY AND APPROPRIATELY, AND THEN THERE'S 11 WHERE WE SAY VERIFICATION PENDING, AND THAT'S ON US, THAT'S ON THE AUDIT DEPARTMENT. WHENEVER SOMETHING GETS IMPLEMENTED WE GENERALLY NEED TO WAIT 4-6 MONTHS TO SEE IF IT'S STICKING. THEY CAN UPDATE A POLICY AND THAT TAKES ONE DAY TO DO, BUT IS THAT POLL SAY TAKING HOLD.
SO WE LET IT RUN 4 WILL 4 TO 6 MONTHS AND THEN DO THE AUDIT AND HOPEFULLY YOUR PACT HAVES A CLEAR VERSION OF THIS BUT, AGAIN, THERE'S A LOT OF -- EVERYTHING IS GOOD WITH BLUES AND GREENS. THE YELLOWS ON THE RIGHT COLUMN, THAT'S ON AUDIT. WE'RE JUST IN A HURRY UP AND WAIT MODE FOR THEM TO -- TO
[00:50:02]
LET THE PROCESS RUN SO WE CAN LOOK AT IT. THE ONES IN RED.IT'S A CONFIDENTIAL AUDIT. SO I CAN'T GO INTO THE DETAILS IN THE SETTING BECAUSE IT WAS IT AUDIT. SO IN THE LAST FEW DAYS, WE'RE ADDRESSING THE ADMINISTRATIVE ISSUES VERSUS TECHNICAL GEEKY STUFF. THE TECHNICAL IS BLUES.
THEY WERE CORRECTED. BUT ADMINISTRATIVE STUFF, IT NEEDS TO BE DONE.
THEY SAID IT WAS DONE. IT NEEDS TO BE AUDITED. IT WASN'T IN PLACE CORRECTLY. BUT WITHIN THE LAST WEEK, IT WAS IMPLEMENTED AND DONE ADDITIONAL TRAINING ON THE ISSUES SO WE'RE IN THE PROCESS OF LETTING IT RUN FOR A MONTH OR TWO AND THEN LETTING THEM AUDIT. SO SHOWED UP ON MARCH 31, WHAT THIS IS BASED ON, THEY HAD NOT BEEN COMPLETED, IT WAS AFTER THE TARGET DATE, BUT THEY HAVE WORKED ON IT, COMPLETED IT, AND WE'LL GO BACK IN AND LOOK AT IT.
THIS IS ALL I CAN SAY ON THIS BECAUSE OF THE TOPIC OF THIS ONE THAT'S MY PRESENTATION. ANY QUESTIONS ABOUT ANY OF THIS?
GLAD TO ANSWER. >> VIAGRAN: ANYONE? NO.
THANK YOU FOR THE PRESENTATION. OH, COUNCILMAN WHYTE.
>> WHYTE: YEAH. A COUPLE THINGS. ALL RIGHT.
SO ON THE VERIFICATION PENDING, THE TARGET DATES FOR COMPLETION,
WE'RE JUST NOT SURE YET? >> NO. THE TARGET DATE THAT MANAGEMENT HAS GIVEN US -- OVER AT THE AUDIT REPRESENTATIONS, THEY'LL TELL US THE ACTION PLAN AND HERE IS WHEN IT'S DONE BY.
SO VERIFICATION PENDING -- LET ME GET THIS RIGHT.
THEY HAVE IMPLEMENTED THE -- THEY'VE TOLD US THEY IMPLEMENTED IT BY THEIR TARGET DATE, BUT WE NEED TO NOW AS AUDITORS LET THAT
PROCESS RUN. >> WHYTE: I SEE. >> SO WE HAVE SOMETHING TO AUDIT, BASICALLY. SO, AGAIN, WE'RE IN A WAITING GAME FOR THE
PROCESS TO MAKE SURE IT TRULY TOOK HOLD. >> WHYTE: ALL RIGHT.
SECOND THING. PROSPER WEST AND THE ESTIMATED DATE FOR
COMPLETION ON THAT ONE. >> PROSPER WEST, THERE'S A LOT OF STUFF GOING ON JUST WITHIN THAT TOPIC AND STUFF. SO THEY ARE -- THEY HAD AN ESTIMATED DATE OF COMPLETION EARLIER IN THIS YEAR, MAYBE LATE LAST YEAR, WHICH THEY HAVE DONE, BUT THERE'S STILL ONGOING DISCUSSIONS WITH PROSPER WEST THAT, YOU KNOW, I DON'T HAVE ALL THE DETAILS BEHIND THAT T SO WE'RE WORKING WITH THEM, MONITORING WHAT'S GOING ON, BUT IT HASN'T BEEN CLOSED BECAUSE WE NEED TO SEE WHERE THAT'LL
LAND. >> WHYTE: AND WE'LL GET A FURTHER UPDATE ON THAT?
>> YES, SIR. WE'LL KEEP TRACKING THAT UNTIL IT COMPLETELY
CLOSES OUT. IT'S ON THE LIST. >> WHYTE: OKAY.
GREAT. LAST QUESTION. AND MAYBE I JUST DIDN'T UNDERSTAND IT PROPERLY, BUT THE FINANCE ACCOUNTS RECEIVABLE REPORT, THE INCONSISTENT METHODOLOGY FOR THE DOUBTFUL ACCOUNTS.
>> CORRECT. THE ORIGINAL FINDING WAS THEY WERE USING DIFFERENT METHODS TO CAL COLLATE METHODS FOR DOWNFALL ACCOUNTS, DIFFERENT DEPARTMENTS DOING IT DIFFERENTLY, SO TECHNICAL ISSUE, SO THE
RECOMMENDATION WAS BRING IT TOGETHER. >> WHYTE: MAKE IT UNIFORM.
>> WHICH THEY DO, THERE'S A DRAFT, ADMINISTRATIVE DIRECTIVE THAT WILL BE APPLIED, THAT DIRECTIVE HAS NOT BEEN FORMALLY APPROVED, WHICH IS WHY IT'S BEHIND SCHEDULE. WE NEED TO SEE IT APPROVED BEFORE WE AS AUDITORS GO OUT AND CHECK THE BOX.
>> WHYTE: OKAY. THANKS. >> VIAGRAN: ANY OTHER QUESTIONS? OKAY. THANK YOU, KEVIN. I THINK, OF COURSE, THE BEHIND THE SCHEDULE AND THE VERIFICATION PENDING ARE GOING TO BE OF INTEREST FOR MANY AND FOR MANY COUNCILMEMBERS AS WE DISCUSS THINGS FOR BUDGETWISE. SO I APPRECIATE YOU GETTING THIS TO US, AND I HOPE THAT WE ALL LET OUR COUNCILMEMBERS KNOW IT'S AVAILABLE TO TAKE A LOOK AT AND SEE WHERE WE'RE MOVING FORWARD AND HOPEFULLY THE DEPARTMENTS AND THE GROUPS THAT HAVE BEEN ASKED TO MAKE SOME CHANGES CONTINUE TO MAKE THOSE CHANGES.
ALL RIGHT. IF THERE ISN'T ANY DISCUSSION -- YES?
>> VIAGRAN: NO. WE'RE NOT. IF YOU WANT AN ITEM FOR NEXT AUDIT MEETING, JUST PLEASE SEND ME AN EMAIL, AND WE CAN GET THAT.
ALL RIGHT. THE -- YES? >> WELL, I JUST WANTED TO FOLLOW UP BECAUSE WE TALKED ABOUT IT AT THE END OF LAST YEAR, TRYING TO GET -- I THINK STAFF WAS GOING TO GIVE US A BRIEF SUMMARY OF SORT OF THE DIFFERENT THRESHOLDS OF WHERE THESE PROJECTS ARE LANDING AND WHAT HAS TO COME BEFORE YOUR COMMITTEE, MADAM CHAIR FOR THE PRESOLICITATION
[00:55:05]
BRIEFINGS, AND SO I WAS WONDERING IF WE COULD PICK THAT BACK UP AT AFUTURE MEETING? >> CHAIR COMMITTEE MEMBERS, WE CAN BRING THAT BACK TO THE NEXT MEETING, WE HAVE NOT DONE THAT, BUT WE HAVE DONE SOME ANALYSIS AND WE HAVE SOME REPRESENTATION WE CAN
BRING TO THE COMMITTEE. >> VIAGRAN: ALL RIGHT. THE TIME IS NOW 2:56:00 P.M. AND THE AUDIT COMMITTEE WILL -- I'M SORRY.
WE DIDN'T GO INTO EXECUTIVE SESSION. THE NEXT MEETING IS SCHEDULEED FOR MAY 14, 2024 WHICH IS A FEW WEEKS FROM NOW, THE TIME IS NOW 2:57, AND THE MEETING IS NOW ADJOUR
* This transcript was compiled from uncorrected Closed Captioning.