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COUNCIL MEMBER COURAGE PRESENT.
COUNCIL MEMBER ROCHA GARCIA HERE.
CITIZEN MEMBER SOTO AND CITIZEN MEMBER TREVINO'S.
WELCOME TO THE, UH, CITY COUNCIL AUDIT COMMITTEE MEETING OF AUGUST 30TH.
UH, WE'RE APPRECIATIVE OF EVERYBODY IN ATTENDANCE AT THIS TIME.
[1. 19-4217 Approval of the minutes from the Audit & Accountability Committee meeting on June 18, 2019]
WE'RE GONNA GO AHEAD AND BEGIN WITH THE FIRST ITEM ON OUR AGENDA, WHICH IS APPROVAL OF THE MINUTES FROM THE AUDIT ACCOUNTABILITY COMMITTEE MEETING OF JUNE 18TH.UH, IS THERE A MOTION TO APPROVE THOSE MINUTES? MOTION TO APPROVE.
MOTIONS BEEN MADE AND SECONDED.
ANY QUESTIONS ABOUT THOSE MINUTES? HEARING NONE.
THE, UH, MINUTES ARE APPROVED.
[Consent Agenda]
WE HAVE, UH, QUITE A FEW ITEMS TODAY.WE HAVE MANY ON CONSENT, UH, AND I, AS, AS WE USUALLY DO, WE ASK ALL OF THE COMMITTEE MEMBERS TO REVIEW THESE ITEMS AHEAD OF TIME.
UH, SO THAT, UH, CONSENT AGENDA, IF, IF ANYTHING COMES UP THAT WE NEED TO PULL, YOU KNOW, NOW IS THE TIME TO GO AHEAD AND RECOMMEND THAT WE CURRENTLY HAVE, UH, ITEMS TWO, UH, THREE, FOUR, AND FIVE ARE CONSENT AGENDA ITEMS. IS THERE ANY, UH, COMMITTEE MEMBER WHO WOULD LIKE TO PULL ANY OF THOSE ITEMS FROM THE CONSENT AGENDA? OKAY.
HEARING NONE, I WOULD WELCOME A MOTION TO APPROVE THE CONSENT AGENDA FOR ITEMS 2, 3, 4, AND FIVE.
ALL IN FAVOR OF APPROVAL OF THE CONSENT AGENDA, PLEASE SAY, AYE.
AGENDA ITEMS 2, 3, 4, AND FIVE ARE APPROVED.
WE HAVE, UH, ABOUT A HALF A DOZEN ITEMS, I GUESS SEVEN FOR INDIVIDUAL CONSIDERATION.
THE FIRST TWO ARE RELATED TO THE AUDITOR AND THE AUDIT DEPARTMENT.
AND, UH, SO I'D LIKE TO ASK, UH, KEVIN TO GO AHEAD AND BRIEF US.
AND CAN YOU DO BOTH ITEM SIX AND SEVEN, OR DO YOU WANT TO HANDLE 'EM SEPARATELY? LET'S DO 'EM SEPARATELY.
[6. 19-6398 FY 2020 Proposed Audit Plan]
NUMBER SIX.SO ITEM NUMBER SIX, IT IS, UH, OUR PROPOSED 2020 ANNUAL AUDIT PLAN.
AND JUST AS A LITTLE BIT OF BACKGROUND, THE WAY THAT THIS PLAN IS DEVELOPED, I'VE MET, UH, OVER THE LAST COUPLE OF MONTHS WITH ALL THE CITY COUNCIL MEMBERS, UH, OR THEIR, OR SOMEONE FROM THEIR STAFF TO GAIN THEIR INPUT, UH, ON, ON WHAT THEY THINK IS IMPORTANT, WHAT WE SHOULD BE LOOKING AT.
ALSO, MET WITH THE EXECUTIVE LEADERSHIP TEAM, SAME TYPE OF DISCUSSIONS AND WHAT THEY WANT US TO LOOK AT.
AND THEN ALSO, WE DO SOMEWHAT OF A HIGH LEVEL RISK ASSESSMENT OR RISK ANALYSIS WITHIN OUR DEPARTMENT.
ALL THE POTENTIAL PROCESSES OR DEPARTMENTS THAT COULD BE AUDITED AND KIND OF GO THROUGH, AGAIN, AT A HIGH LEVEL, WHAT'S, WHAT'S IMPORTANT, GIVING THEM WITH SOME RISK FACTORS AS FAR AS FINANCIAL IMPACT, POSSIBLY, UH, OPERATIONAL IMPACT, UH, THINGS OF THAT NATURE.
PUBLIC SAFETY ALWAYS IS GONNA BUMP UP TO THE TOP ON THOSE TYPES OF ANALYSIS.
ANYWAY, THROUGH THAT PROCESS, WE THEN COME UP WITH, UH, OUR PROPOSED AUDIT PLAN.
THIS PLAN THAT, UH, I'M PRESENTING TODAY, IT ACTUALLY HAS A TOTAL OF 45 PROJECTS.
UH, THE VAST MAJORITY ARE WHAT WE CALL OPERATIONAL OR PERFORMANCE AUDITS.
UH, THAT'S 36 OF THEM, UH, THAT ARE LISTED.
AND WHAT'S IN YOUR PACKET? IT'S THE DEPARTMENT, THE PROGRAM, AND THEN ALSO WHAT THE OBJECTIVE, UH, OF THAT AUDIT'S GONNA BE.
AGAIN, THIS IS, THE OBJECTIVES ARE GENERALLY PRETTY BROAD, SO THAT AS WE GET INTO MORE DETAILS AS WE BEGIN THESE AUDITS, WE THEN, UH, WOULD SOMETIMES, IF NECESSARY, NARROW THE FOCUS OF THOSE AUDITS.
UH, A COUPLE OF THINGS TO HIGHLIGHT ON THIS.
THIS FIRST SECTION, UH, THE VERY FIRST ONE, THE 3 1 1 OPERATIONS, UH, THAT IS AN AUDIT THAT WE HAD ORIGINALLY INTENDED ON DOING LAST YEAR.
UH, WE'RE CARRYING IT FORWARD TO THIS YEAR BECAUSE THE 3 1 1 OPERATIONS, THEY'RE GOING THROUGH A PROCESS OF, OF UPGRADING, UH, AND IMPLEMENTING THEIR NEW APP.
AND THAT WAS A THREE OR FOUR PHASE PROCESS WITH THE LAST PHASE, UH, WILL BE IMPLEMENTED THIS OCTOBER.
SO US GOING IN AND AUDITING A CHANGING PROCESS JUST WOULD NOT HAVE BEEN A GOOD USE OF TIME.
SO WE MOVED THAT ONE AND INCLUDED IT ON THIS YEAR'S PLAN.
AND THEN, LIKE I SAID, THE LAST, UH, VERSION WILL BE IMPLEMENTED IN OCTOBER, AND THEN WE'LL LET IT RUN FOR SIX MONTHS, GET SOME HISTORY BEHIND IT, AND THEN WE'LL GO AUDIT THAT PROCESS, BOTH THE APP AND THEIR OPERATIONS.
UM, BUT AGAIN, YOU CAN SEE WE COVER, UH, A WIDE VARIETY OF DEPARTMENTS, A WIDE VARIETY OF PROGRAMS. UM, THE, UH, THROUGH OUR OPERATIONS, WE ALSO HAVE ANOTHER SECTION, THAT'S WHAT I'M CALLING IN THIS SECTION ON PAGE THREE OF THE, OF THE SPREADSHEET THERE OF WE'RE GONNA DO SOME ANALYSIS, UH, PROJECTS, NOT EXACTLY ON AUDIT, BUT AGAIN, THOSE THAT ARE LISTED, THE SIDEWALKS, THE P C I, THAT PROCESS IS UNDERGOING RIGHT NOW.
THEY'RE GONNA HAVE A REPORT OUT, UH, LATER
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THIS FALL OR EARLY IN THE SPRING.SO WE'RE GONNA THEN LOOK AT THAT AND, AND, UH, MAYBE DO ADDITIONAL ANALYSIS DEPENDING ON WHAT THAT REPORT LOOKS LIKE.
UH, ALSO WE'VE HAD A REQUEST, UH, FROM A COUNCILMAN TO LOOK AT THE SITE AND RELEASE METRICS OF THE POLICE DEPARTMENT.
AGAIN, THAT'S SOMETHING WE'D BE DOING NEXT SUMMER, MOST LIKELY LET THAT PROGRAM RUN AND THEN, UH, SEE HOW THOSE METRICS ARE LOOKING.
AND THEN ALSO SOME EQUIPMENT ANALYSIS WITHIN THE FIRE DEPARTMENT.
UH, WE ALSO HAVE FOLLOW UP AUDITS.
AND AGAIN, THESE ARE AUDITS THAT WE HAD, UH, FINDINGS ON AS WE DID IT THE FIRST TIME, UH, THAT WE DEEMED SIGNIFICANT ENOUGH THAT WE NEED TO GO BACK AND LOOK TO MAKE SURE THAT THE ACTION PLANS THAT MANAGEMENT HAD SUBMITTED, UH, DID IN FACT HAVE IN FACT BEEN IMPLEMENTED AND IN, IN THE PROPER WAY, AND THAT THEY ARE EFFECTIVE IN THEIR IMPLEMENTATION.
AND THEN WE ALSO ALLOW HOURS, UH, FOR SPECIAL PROJECTS AND REQUESTS THAT MAY COME UP DURING THE YEAR, UH, WHICH WE DO GET.
AND THEN WE HAVE ONE PROJECT WHERE WE LOOK AT THE, UH, ASSET AND SEIZURE FORFEITURE, UH, UH, ASSET SEIZURE FORFEITURE FOR THE POLICE DEPARTMENT.
THAT IS A STATE REQUIREMENT THAT THERE'S A CHAPTER 57 OR 59, A REPORT NEEDS TO BE SUBMITTED TO THE STATE EVERY YEAR.
AND WE DO THAT FOR THE POLICE DEPARTMENT.
IF WE DIDN'T DO IT, THEY'D HAVE TO GO TO OUTSIDE, UH, CONSULTANTS OR ACCOUNTANTS OR SOMETHING.
SO THAT'S SOMETHING WE'VE BEEN DOING NOW FOR ABOUT FIVE YEARS AND, UH, GOT THE PROCESS DOWN FAIRLY WELL.
SO THIS IS OUR PROPOSED AUDIT PLAN.
I CERTAINLY SEEK ANY, UH, DISCUSSION ON IT.
ANYTHING THAT Y'ALL THINK SHOULD BE ADDED, DELETED, OR, UH, ANOTHER THING WITH THIS PLAN, THIS PLAN CAN BE CHANGED AT ANY TIME DURING THE YEAR.
THIS IS A POINT IN TIME PLAN, UH, THAT ONCE APPROVED, UH, THEN THAT'S WHAT WE WILL START EXECUTING.
BUT IF THINGS COME UP LIKE THE 3 1 1, IT DIDN'T MAKE SENSE LAST YEAR LIKE WE THOUGHT IT WOULD, SO WE BUMPED IT.
UH, BUT IF THINGS COME UP THAT NEED ARE MORE IMPORTANT SPECIAL PROJECTS THAT CAN BE ADJUSTED, AND, UH, WE DO THAT THROUGH NOTIFICATION, UM, OF THIS COMMITTEE AND THEN GO FORTH AND, UH, AND AUDIT THOSE, UH, NEW PROCESSES.
SO ANY SUGGESTIONS OR CERTAINLY WELCOMING DISCUSSION IS WELCOME.
UH, MY PLAN IS ONCE APPROVED BY THE, UH, COMMITTEE.
I DO HAVE TO TAKE IT TO THE FULL COUNSEL FOR THEIR APPROVAL.
AND TENTATIVELY I'M LOOKING AT A SEPTEMBER 19TH, UM, DATE FOR FULL COUNSEL APPROVAL.
AND THEN WE'LL BEGIN EXECUTION OF THE PLAN.
DO ANY OF THE COMMITTEE MEMBERS? UM, I DON'T HAVE ANY QUESTIONS JUST TO COMMENT.
UH, NUMBER ONE, I THANK YOU, KEVIN, FOR, FOR THE BRIEFING.
AND, UH, I, I, YOU KNOW, I WOULD ENCOURAGE MY, MY COLLEAGUES ON THIS COMMITTEE, UH, TO UTILIZE THE, THE AUDIT DEPARTMENT FOR, YOU KNOW, HELPING TO MEASURE A LOT OF THE, OUR PRIORITIES AND, AND GOALS THAT WE HAVE WITH, WITH FACTUAL OUTCOMES.
UM, AND SO I JUST, AGAIN, I WANNA PUBLICLY THANK KEVIN AND HIS TEAM FOR WHAT THEY DID WITH THE, WITH THE SIDEWALKS IS, AND THAT AUDIT HAS SINGLE-HANDEDLY HELPED SHAPE RESHAPE HOW WE DO SIDEWALKS IN OUR CITY.
UH, AND THEN IT DEMONSTRATES WHERE THE MONEY IS REALLY GOING.
AND, AND THAT'S, THAT'S CRITICAL.
WE HAVE TO BE, WE HAVE TO BE TAKING A CLOSER LOOK AT HOW IT IS ACTUALLY BEING APPLIED.
SO I, I THINK THAT IS ONE OF THE, THE GREAT ROLES OF THIS COMMITTEE AS AN, AS AN AUDIT COMMITTEE.
UH, BUT ALSO RECOGNIZING THE, THE DIFFERENT DEPARTMENTS AND TEAMS AVAILABLE TO US TO HELP US, UH, MEASURE THOSE OUTCOMES SO THAT WE KNOW THAT, THAT THE MONEY THAT WE SAY IS GOING TO SOMETHING IS ACTUALLY GOING TO THAT THING.
I WILL NOT STOP MAKING THAT ASSERTION.
I THINK IT IS INCREDIBLY WRONG TO BE PUTTING ANY KIND OF MONEY INTO OTHER THINGS WE ARE NOT SUPPOSED TO BE, OR NOT, WE'VE NOT SAID WE'RE GONNA BE BUILDING, DOING, OR, UH, APPLYING THAT EFFORT TO.
SO, UM, THAT'S MY COMMENTS CHAIR.
ANY ADDITIONS, UH, TO THE RECOMMENDATION? YES, COUNCILWOMAN.
UM, I JUST HAVE A QUICK QUESTION ON PAGE TWO.
I JUST REALIZED THAT THE DELEGATE AGENCY, DOMESTIC VIOLENCE PREVENTION, UM, THAT YOU ALL ARE LOOKING AT, IS THAT ENOUGH TIME ALREADY TO LOOK AT IT? IS WAS, WOULD THAT BE POTENTIALLY SOMETHING THAT COULD BE MOVED? OR IS, DOES THAT TAKE INTO EFFECT THE NEW DOMESTIC VIOLENCE CONSIDERATIONS THAT THE COUNCIL MADE A PRIORITY RECENTLY? YOU KNOW, UH, THE DELEGATE AGENCIES AND HOW WE LOOK AT DELEGATE AGENCIES, THERE'S ABOUT SEVEN BROAD CATEGORIES, UH, THAT THEY, UM, USE.
AND SO WE GO, WE TAKE TWO TO THREE OF THOSE CATEGORIES A YEAR FOR THE AUDIT, FOR EXAMPLE, THIS YEAR, UH, WE'RE LOOKING AT SENIOR INDEPENDENCE IS ONE, FOR EXAMPLE.
UH, SO THERE HAS BEEN DOMESTIC VIOLENCE PREVENTION CATEGORY WITHIN DELEGATE AGENCIES FOR SEVERAL YEARS NOW.
UH, SO IT'S GONNA INCLUDE WHAT THEY'VE BEEN DOING SO FAR, BUT, SO SOME OF THE NEW PROGRAMS THAT ARE GOING THROUGH THE DELEGATE AGENCIES, UH, IF IT'S THE SAME, UH, NON-PROFITS, THEN YES, WE'RE GONNA LOOK AT THOSE PROCESSES.
UH, BUT AGAIN, DEPENDING ON THE TIME, AND THIS ONE, WE CAN WAIT AND DO IT LATER IN THE YEAR VERSUS RIGHT AWAY.
UH, WE HAVE NOT YET SCHEDULED THESE OUT YET, SO THAT WE DO CAPTURE SOME OF THE NEW PROGRAMS WE CAN, WE CAN DEAL WITH THAT IN THE SCHEDULING OF THIS PROCESS.
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GREAT.'CAUSE THAT WAS MY SAME QUESTION WITH THE SITE AND RELEASE METRICS.
THAT'S SOMETHING WE'RE GONNA WAIT TILL NEXT SUMMER.
I MEAN, WE NEED TO LET THAT RUN, UH, HOPEFULLY A YEAR BEFORE WE GO IN AND START LOOKING AT THE NUMBERS.
AND THANK YOU FOR ALL THE HARD WORK.
I'M EXCITED ABOUT BEING ON AUDIT COMMITTEE.
YOU KNOW THIS, AND SO THANK YOU FOR LETTING ME BE A PART OF IT.
COUNCIL, ABSOLUTELY COUNCILWOMAN.
IF THERE ARE A MOTION, UH, TO APPROVE THIS AND MOVE IT FORWARD TO COUNCIL FOR THEIR APPROVAL.
I THINK I HAVE A MOTION AND A SECOND.
MOTION TO SECOND TO, UH, APPROVE THIS AND MOVE IT FORWARD TO COUNCIL.
[7. 19-6399 FY 2020 Proposed Budget for Auditor’s Office]
ITEM NUMBER SEVEN.ITEM NUMBER SEVEN IS OUR PROPOSED BUDGET, AND, UH, I PUT THIS ON THE AGENDA SO WE COULD DISCUSS IT, BUT I DID ALSO JUST FIND OUT THIS MORNING THAT I'LL ALSO BE PRESENTING, UH, MY DEPARTMENT BUDGET TO THE FULL COUNCIL AT THE TUESDAY SESSION.
SO, UH, THIS IS, UH, A SNEAK PEEK.
THIS IS THE TRAILER, UH, FOR MY, FOR MY BUDGET ON TUESDAY
UH, BUT ANYWAY, AT A VERY HIGH LEVEL, YOU KNOW, OUR BUDGET IS JUST A, A, A LITTLE BIT OVER $3 MILLION.
AND SO OBVIOUSLY THAT'S THE BIGGEST, UH, PART OF OUR BUDGET IS 85%.
THAT INCLUDES, UH, FUNDING FOR A STAFF OF 23, UH, PROFESSIONALS.
UH, AND OF THAT STAFF, IT'S, THERE'S ONE ADMIN PERSON INCLUDED.
THE REST OF US ARE ALL PROFESSIONAL.
WE'RE AUDITING, WE'RE MANAGING AUDITS.
UH, THAT'S THE SERVICE THAT WE, UH, THAT WE PROVIDE THROUGH THIS PROCESS.
OUR STAFFING WILL REMAIN THE SAME, UH, THROUGH THIS FOLLOWING YEAR.
I BELIEVE THE STAFFING IS CERTAINLY ADEQUATE, UH, FOR WHAT WE DO.
UH, THE OTHER SERVICES THERE, I MEAN, THEY'RE RELATIVELY SMALL PERCENTAGES, BUT THE CONTRACTUAL SERVICES THAT COVERS OUR TRAINING, UH, PRIMARILY IN SOME OTHER SUBSCRIPTIONS AND PROFESSIONAL, UH, DESIGNATIONS AND PROFESSIONAL ORGANIZATIONS.
AND THEN SELF-INSURANCE, WHICH IS WHAT EVERYBODY HAS.
COMMODITIES, WHICH MEANS OFFICE SUPPLIES, AND THEN, UH, CAPITAL OUTLAY, AND THEN A TRANSFER TO FROST, UH, WHICH HAS TO DO WITH THE RENT BECAUSE WE'RE IN THE, THE FROST TOWER OR THE, THE, THE CITY TOWER.
WE'VE BEEN THERE FOR A WHILE AT A VERY CHEAP RENTAL RATE.
SO THE SAVINGS HAS BEEN TRANSFERRED TO THAT, AND THAT'S BEEN, UH, THAT WAY FOR A COUPLE OF YEARS.
BUT A VERY STRAIGHTFORWARD BUDGET, VERY SIMILAR TO LAST YEAR.
UH, JUST WANTED TO GIVE Y'ALL THAT, UH, UPDATE.
AND AGAIN, I'LL BE PRESENTING, UH, THIS IN A LITTLE BIT MORE ON TUESDAY TO THE FULL COUNCIL.
UH, YOU MENTIONED YOU HAVE JUST ONE ADMINISTRATOR FOR HOW MANY? 22.
AND, AND REALLY ONE CAN GET THE JOB DONE FOR ALL OF YOU? YES.
I MEAN, AND SO MUCH OF OUR PROCESSES ARE AUTOMATED.
AND, UH, YOU KNOW, I TELL 'EM WE DO OUR OWN STUNTS.
I MEAN, THINGS THAT WE CAN TAKE CARE OF, WE TAKE CARE OF.
AND SHE, SHE KEEPS US OUTTA TROUBLE.
HER JOB DESCRIPTION SAYS, KEEPING ME OUT OF TROUBLE,
ANY OTHER QUESTIONS FROM OTHER COMMITTEE MEMBERS? YES, COUNCILMAN, UH, KEVIN, JUST A QUICK NOTE BEFORE YOU PRESENT TO COUNCIL.
CAN, UM, CAN WE MAKE IT PERSONNEL INSTEAD OF PERSONAL SERVICES? I JUST WANNA MAKE SURE THAT, THAT YOU TALK TO THE BUDGET OFFICE
CAN WE MAKE SURE SOMEONE FIXES IT'S, IT'S THE AUDIT DEPARTMENT? I DON'T, NO, BUT THAT'S HOW IT'S PRESENTED.
UH, IS IT, SO ITS NOT PERSONNEL.
EVERY PRESENTATION YOU'VE SEEN HAS THAT, I BELIEVE.
SO I JUST, I DIDN'T REALIZE THAT IT WAS, IT SEEMS LIKE IT'S GOING TO A PERSONAL SERVICE BUDGET.
ANY OTHER QUESTIONS OR COMMENTS ABOUT, OKAY, SO AGAIN, UH, I WOULD ENTERTAIN A MOTION TO, NO MOTION IS NECESSARY, SIR.
THIS WILL JUST BE PART OF THE BUDGET PACKAGE.
WELL, THANK YOU FOR THE BRIEFING.
THOSE WERE THE TWO, UH, AUDIT ITEMS THAT WE HAD ON OUR AGENDA.
SO NOW WE'RE GONNA MOVE TO, UH, SOME PRES SOLICITATION AND POSTS SOLICITATION BRIEFINGS.
[8. 19-6021 Continental Hotel Property [Lori Houston, Assistant City Manager; Trey Jacobson, Center City Development and Operations]]
FIRST ONE IS ITEM NUMBER EIGHT, CONTINENTAL HOTEL PROPERTY.AND WILL WE BE HEARING FROM LORI OR TREY ON THIS? TREY, MR. CHAIRMAN.
UH, MR. AND MEMBERS OF THE COMMITTEE, UM, BEFORE YOU TODAY TO BRIEF YOU ON A PROPOSED SOLICITATION WHERE THE CITY WOULD SEEK REDEVELOPMENT PROPOSALS TO SELL THE HISTORIC CONTINENTAL HOTEL BUILDING AND PROPERTY.
UH, THERE ARE RECENT DAYS, IT'S BEEN EVIDENT TO ME THAT NOT EVERYBODY KNOWS WHAT THE CONTINENTAL HOTEL BUILDING IS.
UH, WE ACTUALLY HAVE SOME MAPS AND SOME PHOTOS OF THE SITE THAT ERICA WILL BE DISTRIBUTING FOR YOU FOR SOME REFERENCE POINTS.
UM, IT IS JUST LESS THAN TWO BLOCKS AWAY HERE ON AT 3 22 WEST COMMERCE STREET.
IT WAS IF, UH, THE FORMER PRINCIPAL OFFICE OF THE METROPOLITAN HEALTH DISTRICT, IF YOU'RE FAMILIAR WITH THAT.
IT IS A, UH, THIS BUILDING THAT WAS, ITS ORIGINAL, UM, FRAMING CAME UP IN 1896, AND IT'S BEEN ADDED TO OVER THE YEARS.
IT WAS RENOVATED IN THE EIGHTIES, AND THE HEALTH DEPARTMENT LEFT IT JUST IN 2018.
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PROPERTY HAS LARGELY BEEN UTILIZED BY THE RIVER AUTHORITY, I MEAN, THE PARKING LOT BEHIND IT AS A STAGING AREA FOR THE SAN PEDRO CREEK PROJECT.THIS SOLICITATION IS SOMETHING THAT HAS BEEN ANTICIPATED FOR A NUMBER OF YEARS AS, AS THE CITY'S PLAN TO MOVE THE HEALTH DEPARTMENT OUT OF THAT FACILITY.
IT'S ALSO BEEN PRE-PROGRAMMED AND PRESENTED TO THE COUNCIL IN THE PAST BY WHICH THE PROCEEDS FROM THE CELL, THE PROPERTY WOULD GO FOR THE RENOVATION OF THE CITY TOWER.
LAUREN, CAN YOU ADVANCE THAT? I'M NOT, IT'S NOT WORKING.
UH, SO AS PART OF THIS, WE'RE GONNA BE LOOKING TO GET THE MARKET VALUE FOR THE PROPERTY.
THE ESTIMATED VALUE OF WHICH FROM SOME PRIOR APPRAISALS WE HAVE IS EIGHT $4.85 MILLION.
UH, WE'RE GONNA BE, AND TYPICALLY, UH, THE SALE OF PROPERTY, YOU KNOW, UH, LOCAL GOVERNMENTS WOULD HAVE TO GO OUT TO CLEAR THE PROPERTY SURPLUS AND PUT IT OUT FOR THE HIGHEST BID FOR THE PROPERTY.
HOWEVER, BECAUSE THIS PROPERTY IS LOCATED IN A TAX INCREMENT REINVESTMENT ZONE, IN CANDIDLY BECAUSE OF THE IMPORTANCE OF THAT PROPERTY IN THIS PART OF THE DOWNTOWN, WE'RE PROPOSING TO DO THIS THROUGH AN R F P.
SO WE'RE NOT JUST GETTING THE MARKET VALUE FOR THE PROPERTY, BUT WE'RE ACTUALLY TRYING TO GET THE BEST PROJECT FOR THIS PART OF THE CITY.
WE ARE NOT DICTATING WHAT THE SPECIFIC ACTIVITIES ARE, BUT WE'RE, LOOK, WE'RE MINDFUL OF THE FACT, UH, AND WE SPEAK TO THE, UH, PRIORITIES OF THE COUNCIL IN THE R F P PRIMARILY BEING THE OPPORTUNITIES FOR HOUSING, PARTICULARLY AFFORDABLE HOUSING.
WE'RE ALSO CONTEMPLATING IT 'CAUSE OF THE, ITS PRO, ITS ITS RELATIONSHIP, UH, AND THE FACT THAT HAS THE OPPORTUNITIES FOR GROUND LEVEL RETAIL AND SOME OTHER ACTIVITIES THAT WE'RE, WE'RE ASSUMING BOTH A MIX OF HOUSING TYPES AND A MIX OF USES THE PARKING LOT BEHIND.
IT PROVIDES AN OPPORTUNITY FOR PARKING.
AND WE'RE VERY COGNIZANT OF THE NEED FOR A GOOD DESIGN AESTHETICS RELATED TO THIS BUILDING.
UH, ONE, IT'S A HISTORIC BUILDING.
TWO, IT'S ON SAN PEDRO CREEK AND IS SUBJECT TO THE RIO DESIGN GUIDELINES.
AND THEN ALSO, WE SHOULD NOT FORGET, IT'S PART OF THE Z CULTURE ALL AREA.
UM, WE'RE GONNA BE GOING THROUGH EXTENSIVE OUTREACH, UM, WITH THE, UM, WITH THE DEVELOPMENT COMMUNITY.
WE HAVE A FAIRLY LARGE LIST OF MOST OF THE, THE INTERESTED PLAYERS IN THIS AREA.
ALSO BECAUSE THE, THE NATURE OF THIS PROCESS WHERE WE'RE LOOKING TO GET THE BEST PROJECT AND MAKING SURE THAT THE DEVELOPMENT TEAM THAT'S ULTIMATELY SELECTED BY THE COUNCIL HAS THE CAPACITY AND, AND WHERE ALL TO DEVELOP THE PROJECT.
WE HAVE A NUMBER OF, UH, PRIVATE SECTOR PARTICIPANTS IN THE PROCESS IN THE PROJECT WHO ARE FOR ARCHITECTS, BANKERS, PEOPLE WHO ARE IN THE DEVELOPMENT INDUSTRY.
WE ALSO HAVE, UH, THE NEWLY SELECTED, UH, C E O OF CENTRO, MATT BROWN, TO HELP US, YOU KNOW, ADVOCATE FOR THE ZONE OF CULTURE OF ALL.
WE ALSO HAVE, UH, VERONICA MENDEZ, WHO'S THE VICE PRESIDENT OF BUSINESS AFFAIRS, THE C F O, IF YOU WILL, FOR THE, FOR U T S A.
UH, BECAUSE OF THE DEVELOPMENTS THAT THEY'RE PUTTING THAT IN THAT AREA, WE'RE FAIRLY CONFIDENT WE'RE GONNA GET THROUGH THIS PROCESS AND THROUGH THIS EVALUATION AND, UH, GREAT PROPOSALS.
UH, THE, THE SCORING CRITERIA IS FOCUSED ON, AGAIN, PURCHASE PRICE, WHICH IS CRITICAL IN THIS PROCESS FOR US, THE DEVELOPMENT EXPERIENCE OF THE TEAM AND THEIR FINANCIAL CAPABILITY, AND ULTIMATELY THEIR ABILITY TO PROPOSE A GREAT PLAN AND TO DEVELOP IT IN A TIMELY FASHION.
AND THEN CONSIDERING ALL THE OTHER ECONOMIC VALUE THAT MIGHT ACCRUE TO THE CITY, WE ALSO HAVE LOCAL PREFERENCE POINTS AND VETERANS POINTS RELATED TO THIS PROJECT.
IN TERMS OF A PROJECT TIMELINE, UH, THAT, YOU KNOW, UH, PROVIDED THAT THE COUNCIL COMMITTEE, UH, RECOMMENDS GOING FORWARD, THE PLAN IS TO ISSUE THE SOLICITATION NEXT WEEK.
UH, WE WILL GO THROUGH PRE-SUBMIT CONFERENCE ON THE 13TH WITH DUE DATES FOR THE PROPOSALS IN LATE OCTOBER.
WE WANNA MOVE FAIRLY QUICKLY ON THIS, AND THE COMMITTEE IS ALREADY BEING PROGRAMMED TO MEET, UH, IN MID-NOVEMBER TO PROVIDE A RECOMMENDATION.
WE WOULD COME BACK TO THIS COMMITTEE AS A POSTS SOLICITATION BRIEFING, AND THAT LEAST IS PROPOSED IN MID-DECEMBER.
AND PROVIDED THAT, THAT SCHEDULE KEEPS, WE WILL BRING THIS BACK TO THE FULL COUNCIL IN JANUARY.
AND THAT CONCLUDES MY PRESENTATION, AND WE'RE HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
TREY, LET ME ASK YOU, UH, THE TIMELINE ON THIS.
I UNDERSTAND WE WANNA MOVE PRETTY QUICKLY, BUT WE'RE SAYING THAT, UH, WITHIN SIX DAYS OF THE, UH, RELEASE DATE, WE'RE GONNA HAVE A PRE-SUBMIT CONFERENCE.
IS THAT REALLY ENOUGH TIME FOR PEOPLE WHO ARE INTERESTED IN THIS PROJECT TO, UH, YOU KNOW, DEVELOP KIND OF QUESTIONS AND THINGS THEY NEED TO HAVE ANSWERED OVER THAT SHORTER PERIOD OF TIME? YOU KNOW, WE FELT THAT MOST OF THE SERIOUS PLAYERS WHO ARE GONNA BE INVOLVED IN THIS WILL BE ABLE TO COME.
UH, IF, IF WE HAVEN'T ALREADY ADDRESSED MOST OF THE, THOSE QUESTIONS IN THE R F P, THEY'LL AT LEAST BE ABLE TO BRING THOSE QUESTIONS TO US.
IN OTHER WORDS, IF WE HAVEN'T ADDRESSED IT, THEY CAN RAISE THOSE QUESTIONS TO US.
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AFTERWARDS TO, TO ISSUE WRITTEN, UH, FORMAL RESPONSES TO THAT TO HELP INFORM THEM BETTER.AND WE HAVE A, THERE'S A PERIOD OF TIME BY WHICH WE CAN CONTINUE TO HAVE THAT COMMUNICATION THROUGH THAT PROCESS.
SO WE THINK THE PROCESS, AND, AND THIS IS NOT UNCOMMON THROUGH THE OTHER SOLICITATIONS THE CITY DOES THAT WE'LL BE ABLE TO ADDRESS THOSE QUESTIONS IN, IN AN EFFECTIVE MANNER.
UH, THAT QUESTION WAS JUST, UH, IN DEFERENCE TO OUR FORMER COMMITTEE MEMBER WHO WOULD ALWAYS ASK THOSE QUESTIONS.
UH, BUT ONE THING I, I HAVE, UM, I GUESS I WANNA MAKE AN OBSERVATION ABOUT, WE'VE GOT AN EVALUATING COMMITTEE.
UM, ARE, ARE THOSE WHO ARE INVOLVED, WHO REPRESENT CERTAIN INTERESTS? UH, ARE THEY EXCLUDED FROM BIDDING? FOR EXAMPLE, YOU'VE GOT SOMEBODY FROM U T S A, WE KNOW THEY WANT TO DO EXPANSION.
WE'VE GOT SOMEBODY FROM BROADWAY BANK WHO LENDS MONEY, AND WE'VE GOT SOMEBODY FROM ZACHARY HOSPITALITY WHO MAY BE, YOU KNOW, INTERESTED.
AND SO WE'VE GOT PEOPLE ON THE COMMITTEE THAT I WONDER MAY HAVE A VESTED INTEREST SOMEWHERE DOWN THE LINE.
SO WHAT IS OUR, OUR POLICY OR PROCEDURE ON THAT? WELL, COUNCILMAN, THANK YOU FOR ASKING THAT BECAUSE WHEN WE WERE GOING THROUGH TRYING TO IDENTIFY INDIVIDUALS WHO MIGHT SERVE ON THIS COMMITTEE TO HELP BRING THAT OUTSIDE EXPERTISE INTO THE PROCESS, WE SPECIFICALLY HAD THAT CONVERSATION WITH THEM IN ADVANCE TO MAKE SURE THAT THEY SHOULD HAVE AND WILL NOT HAVE ANY DIRECT OR INDIRECT CONFLICT OF INTEREST THROUGHOUT THIS PROCESS.
SO, UH, U T SS A WILL NOT BE IN ANY WAY PART OF A BID OR A PACKAGE OR SUPPORTING, FOR EXAMPLE, JUST TO, TO GIVE YOU THAT EXAMPLE.
AND THEN, UH, CORINA GREEN, WHO'S WITH ZACHARY HOSPITALITY, WE PRE-CLEARED IT WITH THEM THAT THEIR COMPANY, AND WE WENT TO THE HIGHEST LEVELS OF THEIR COMPANY TO MAKE SURE THAT THEY UNDERSTOOD THAT OKAY, GOOD.
THEY WOULD HAVE NO TYPE OF INTEREST, EITHER INVESTMENT OR OTHERWISE IN, IN THIS, BECAUSE WE, WE TOO, ALSO WANT TO MAKE SURE THIS IS AN ETHICALLY CLEAN, UH, PROCESS FOR, FOR US.
OTHERWISE, IT'S, IT'S PROBLEMATIC AT THE END FOR ALL OF US.
WELL, I'M GLAD THAT YOU, YOU SAID THAT PUBLICLY TO KIND OF CLEAR ANY, UH, IDEAS.
UH, ANY OTHER QUESTIONS OR COMMENTS FROM OTHER COMMITTEE MEMBERS? OKAY, HEARING NONE.
THANK YOU VERY MUCH FOR THE BRIEFING ON IT FORWARD.
[9. 19-6035 Rental Housing Development and Homeownership Development [Lori Houston, Assistant City Manager; Verónica R. Soto, Director, Neighborhood and Housing Services Department]]
NINE, AND THAT'S, UH, RENTAL HOUSING DEVELOPMENT AND HOME OWNERSHIP.WE'RE GONNA BE HEARING FROM VERONICA SOTO.
YOU MAY NEED TO MOVE THAT A LITTLE CLOSER.
YES, WE'RE BEING TELEVISED, SO, UH, THAT'S CORRECT.
UM, THE ITEM BEFORE YOU IS A PRES SOLICITATION BRIEFING FOR BOTH HOME OWNERSHIP HOUSING AND RENTAL HOUSING DEVELOPMENT.
AND THIS IS THROUGH THE USE OF OUR FEDERAL ENTITLEMENT FUNDS.
UH, WE ISSUE REQUESTS FOR APPLICATIONS FOR THE USE OF THESE FUNDS.
AND THE FIRST PRESENTATION IS STRICTLY ABOUT HOME OWNERSHIP.
SO THE SECOND SLIDE SHOWS THAT THIS IS A REQUEST FOR APPLICATIONS PROCESS.
UH, 3 MILLION SET ASIDE FOR THE HOME OWNERSHIP, UM, R F A.
AND WE INVITE DEVELOPERS FOR PROFIT AND NOT-FOR-PROFIT DEVELOPERS TO SUBMIT THEIR REQUEST FOR THIS FUNDING.
UM, JUST FOR THE RECORD, WE HAVE 1.75 MILLION IN C D B G FUNDING AND 1.25 IN HOME FUNDING FOR THIS.
THERE ARE AFFORDABILITY COVENANTS REQUIRED AND SO REQUIRED.
AND SO IT DEPENDS ON HOW MUCH INVESTMENT OUT OF FEDERAL FUNDS ARE MADE TO A PROJECT THAT THE COVENANT CARRIES.
FOR EXAMPLE, IF IT'S NEW CONSTRUCTION, THE AFFORDABILITY PERIOD IS 20 YEARS.
AND SO WE PROVIDE GAP FINANCING FOR THE CONSTRUCTION REHABILITATION OF AFFORDABLE HOME OWNERSHIP HOUSING UNITS.
AND THIS IS ALSO SPO SUPPOSED TO SERVE FAMILIES WHO ARE LOW INCOME DEFINED BY HUD AS FAMILIES OUT OR BELOW 80% OF THE MEDIA AREA.
IN TERMS OF OUTREACH, OF COURSE, THROUGH OUR PROCUREMENT, UH, WE DO, UH, REACH OUT TO DEVELOPERS, UH, CONSTRUCTION TRADE INDUSTRIES.
BUT WITHIN OUR DEPARTMENT, WE ALSO HAVE TARGETED OUTREACH.
SO WE HAVE A LIST OF 81 PRIOR APPLICANTS TO THIS FUNDING SOURCE.
WE HAVE OUR COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS AND NONPROFITS THAT VISIT WITH US REGULARLY.
AND WE WILL, OF COURSE, COORDINATE WITH OUR GOVERNMENT, GOVERNMENT AND PUBLIC AFFAIRS, UM, DEPARTMENT TO ENSURE WE HAVE A LOT OF SOCIAL MEDIA OUTREACH AS WELL.
UH, AND OF COURSE, WITH FEDERAL FUNDING, WE ALWAYS HAVE TO DO PUBLIC NOTICES WITH REGARDS TO EVALUATING THE APPLICATIONS THAT ARE SUBMITTED.
THE TEAM IS COMPOSED OF ASSISTANT CITY MANAGER, LAURIE HOUSTON, MYSELF, OUR ASSISTANT
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DIRECTOR WITHIN NEIGHBORHOOD AND HOUSING SERVICES, MR. DR.ETIENNE, UH, OUR GRANTS ADMINISTRATOR, LAURA SALINAS MARTINEZ, WHO'S HERE WITH US AS WELL, AND THE ASSISTANT DIRECTOR OF FINANCE, MELANIE KEATON.
AND WE HAVE GREAT STAFF WITHIN OUR GRANTS MANAGEMENT ADMINISTRATION THAT ALSO ADVISES AS WELL FOR WHAT WE EVALUATE.
WE HAVE EXPERIENCE IN CAPACITY, WE LOOK AT PROJECT READINESS, THAT'S A KEY COMPONENT BECAUSE OUR MONEY HAS TO BE, UH, UTILIZED QUICKLY.
UH, WE HAVE METRICS, UM, WITH THE FEDERAL GOVERNMENT TO, TO MEET EVERY YEAR.
WE DO LOOK AT THE PROJECT SIDE CHARACTERISTICS AND AMENITIES, ENSURING THAT IT IS, UM, LOCATED WHERE THOSE FAMILIES CAN HAVE THE BEST SERVICES OR THE BEST ACCESS.
UH, OF COURSE, WE HAVE TO FOLLOW ALL OF THE HUD REGULATORY GUIDELINES AS WELL.
UH, WE HAVE TO ENSURE EFFICIENT USE OF FUNDS, AGAIN, UH, GETTING THE FUNDS UTILIZED QUICKLY AND UNDERWRITING VERY IMPORTANT TO ENSURE THAT THE PROJECT IS READY, THAT THE OTHER SOURCES ARE READY AS WELL.
SO OUR MONEY CAN BE THE LAST ONE IN FOR GAP FINANCING, UM, BECAUSE THIS IS FEDERAL MONEY, THE S BETA AND OTHER, UM, LOCAL, UM, REQUIREMENTS DO NOT APPLY.
WE HAVE TO FOLLOW THE FEDERAL GUIDELINES.
SO WE ARE ASKING COUNCIL SEPARATE ACTION TO LOOK AT OUR EVALUATION CRITERIA, UH, FOR BOTH HOMEOWNERSHIP AND RENTAL HOUSING.
UH, WE ARE PROPOSING TO RELEASE THIS, UH, R F A SEPTEMBER 6TH, HAVE A PRE-SUBMIT CONFERENCE, SEPTEMBER 30TH, BE ABLE TO ANSWER QUESTIONS AS WELL.
UM, SO WE CAN HAVE EVALUATION, UH, IN THE EARLY PART OF NOVEMBER.
UM, COME BACK, WE HOPE, UH, AT YOUR NOVEMBER MEETING WITH A POST ELICITATION BRIEFING AND HAVE A RECOMMENDATION READY TO BE SUBMITTED TO COUNCIL IN DECEMBER.
AND THE CONTRACT DATES AGAIN WILL DEPEND ON THE ITEMS WITH REGARDS TO RENTAL.
AGAIN, UH, R F A PROCESS, DIFFERENT AMOUNT, 4.5 MILLION.
SO I'M SWITCHING TO THE RENTAL ONE.
UH, AGAIN, AN R F A PROCESS, AGAIN, UM, FUNDING TO BE UTILIZED TO DEVELOP AFFORDABLE RENTAL HOUSING.
UH, WE CAN HAVE LAND ACQUISITION, NEW RENTAL HOUSING CONSTRUCTION, OR THE REHAB OF EXISTING RENTAL HOUSING PROPERTIES WITH THIS.
AND AGAIN, THERE ARE LIMITATIONS IN COVENANTS, UM, THAT ARE IN PLACE.
SO WE HAVE THAT PERIOD OF AFFORDABILITY BUILT IN, UH, IT'S $4.5 MILLION IN BOTH C D B G AND HOME AND FOR OUTREACH.
SAME OUTREACH EFFORT WITH THE VENDORS FROM OUR, UM, T C I PROCUREMENT TEAM, PLUS THE TARGETED OUTREACH IN OUR DEPARTMENT.
IT IS THE SAME EVALUATION COMMITTEE AS WELL.
UM, SO THAT WE LOOK AT VERY SIMILAR, UH, REQUIREMENTS WITHIN THE R F A EXPERIENCING CAPACITY PROJECT READINESS, THE PROJECT SITE CHARACTERISTICS AND AMENITIES, MAKING SURE THEY MEET THE HUD REGULATIONS, THAT THEY USE THE FUNDS IN AN EFFICIENT MANNER.
AND OF COURSE, VERY IMPORTANT TO US UNDERWRITING, AGAIN, TO ENSURE THE PROJECT IS READY TO GO AND THAT THEY CAN MOVE QUICKLY TO DELIVER FOR OUR CLIENTS.
AND THE TIMELINE FOR THIS IS HAVE THE RELEASE OF THE R F A ON SEPTEMBER 13TH RESUBMITTAL CONFERENCE, UH, SHORTLY AFTER, AND BE ABLE TO HAVE SUBMITTALS DUE BACK TO US IN OCTOBER.
AGAIN, AGGRESSIVE TIMELINE TO REVIEW AND HAVE EVALUATION, UM, OF THE, BY THE COMMITTEE FIRST WEEK IN NOVEMBER, UM, CONTRACTS TO BE NEGOTIATED, BUT LOOKING TO COME BACK TO YOU IN NOVEMBER SO THAT WE CAN HAVE RECOMMENDATIONS TO COUNSEL IN DECEMBER.
THAT CONCLUDES THE PRESENTATION, UNLESS YOU HAVE QUESTIONS.
YOU MENTIONED AT THE BEGINNING OF YOUR PRESENTATION.
UM, MOST OF THIS IS CALLED GAP FINANCING, CORRECT? CAN YOU EXPLAIN WHAT GAP FINANCING IS? SURE.
UM, SO WE KNOW THAT TO CREATE AFFORDABLE HOUSING IN OUR COMMUNITY, UH, THE RENTS ARE GONNA BE LOWER THAN THE MARKET.
AND SO THAT CREATES A GAP OF REVENUE FOR THE DEVELOPERS.
AND SO OUR FINANCING IS UPFRONT MONEY.
THAT MEANS THAT THE REVENUE STREAM THAT THE DEVELOPER GETS GOING FORWARD, UM, CAN BE REDUCED BY THAT AMOUNT.
SO THEY DON'T HAVE TO GET A LOAN FOR THE AMOUNT THAT, UH, WE PUT IN, FOR EXAMPLE.
AND SO THEIR PAYMENTS, UM, FOR THAT LOAN ARE NOT AS HIGH AS THEY WOULD HAVE BEEN OTHERWISE.
SO THAT'S THE GAP FINANCING, UM, TO KEEP THE RENTS AT THE LEVEL THAT IS AFFORDABLE.
UM, THERE IS A GAP CREATED ON FUTURE REVENUE STREAMS. SO OUR MONEY IS GAP FINANCING.
UM, IT'S WHAT ENSURES THE UNITS ARE AFFORDABLE, AND THAT IS ALSO WHY WE HAVE THE AFFORDABILITY COVENANTS THAT RUN ALONG WITH THE LAND FOR OUR INVESTMENTS.
SO IN, IN SIMPLE TERMS, THE GAP FINANCING HELPS KEEP THE COSTS DOWN TO THE, FOR THE RENTERS BUYERS AND THE RENTERS, CORRECT? THAT'S CORRECT.
AND, AND, AND THAT BENEFIT IS FOR PEOPLE
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WHO ARE IN LOW INCOME, UH, ECONOMIC CONDITIONS WHERE THEY NORMALLY MAY NOT BE ABLE TO AFFORD MARKET RATES, CORRECT.FOR RENT OR FOR HOUSE PAYMENTS? CORRECT.
AGAIN, ALL THE FEDERAL FUNDING, C D B G AND HOME HAS TO BENEFIT FAMILIES AT OR BELOW 80% OF THE AREA MEDIAN INCOME.
SO IT'S REALLY THE, THE MONEY SOURCE, HUD AND FEDERAL GOVERNMENT THAT MANDATES HOW THIS MONEY CAN BE USED TO, UH, MAKE HOUSING MORE AFFORDABLE.
UH, COUNCILMAN TREVINO, I THINK HAD A QUESTION OR COMMENT.
UH, REALLY, UH, MORE OF A COMMENT.
UH, THANK YOU FOR THE BRIEFING ON THIS ITEM.
AND, UH, BECAUSE WE ARE NOW BEING TELEVISED, I THINK IT'S, UH, SOMETHING THAT WE SHOULD HIGHLIGHT, UH, AS YOU POINTED OUT IN THE BRIEFING, IS THE UNDERWRITING AND, AND WHY THAT'S SO IMPORTANT.
SO CAN YOU MAYBE GO OVER THAT? I MEAN, I GOT THE BRIEFING ON THAT, BUT I, I JUST WANT YOU TO, TO HIGHLIGHT THAT SOME MORE IN TERMS OF THE, THE EVALUATION CRITERIA AND WHY THAT'S SO IMPORTANT.
UM, SO IN OUR DEPARTMENT, UM, THERE WAS A RULE CHANGE IN 2013 FOR THE HOME PROGRAM WE HAD DONE UNDER UNDERWRITING, BUT WE HAD DONE IT POST, UM, AFTER THE ITEMS WERE REVIEWED AND, AND SCORED.
SO WE DID SOME PRELIMINARY UNDERWRITING, BUT IT WASN'T PART OF THE EVALUATION CRITERIA BEFORE.
WITH THIS PROCESS, WE ARE PROPOSING, AND YOU SAW THE SCORING, THAT IT'S 30 POINTS, THAT IT BE ONE OF THE MOST IMPORTANT ASPECTS OF HOW WE EVALUATE A PROJECT.
SO WHAT WE LOOK AT WHEN WE DO UNDERWRITING IS, OF COURSE, THE REVENUE STREAM, THE PROFORMA, WHERE THEY'RE GONNA GET FI FINANCING TO MAKE THE PROJECT WORK.
AND SO WE LOOK AT, IS THIS VIABLE? ARE THEY GONNA BE ABLE TO SUSTAIN THIS DEVELOPMENT FOR THE, LET'S SAY IT'S NEW CONSTRUCTION FOR THE 20 YEARS THAT THEY HAVE? DO THEY HAVE ENOUGH CASH RESERVES? DO THEY HAVE ENOUGH RENT PROJECTED TO MAKE SURE THAT BUILDING IS MAINTAINED? WE NEED TO HAVE A GOOD SOURCES AND USES, UM, PRO FORMA THAT BALANCES, AND WE MAKE SURE THE COSTS ARE REASONABLE.
WE WANNA MAKE SURE THAT THERE'S EXPERIENCE FROM THE APPLICANT, UM, AND THAT THEY HAVE THE FINANCIAL CAPACITY.
ARE THEY ABLE TO SECURE, UH, BONDING, FOR EXAMPLE? THAT'S VERY IMPORTANT, UM, TO MAKE SURE THAT THE CONSTRUCTION, IF IT'S NEW CONSTRUCTION CARRIES FORWARD.
WE ALSO ENSURE THAT THE PROFIT TO THE OWNER IS REASONABLE AND NOT EXCESSIVE.
OUR FUNDING IS HERE TO BENEFIT, UM, THOSE PEOPLE THAT BUY OR RENT IN, IN THE DEVELOPMENT.
UM, SO WE HAVE A REASONABLE EXPECTATION.
THERE IS A CAP FROM HUD ON THE DEVELOPER FEE, AND SO WE MAKE SURE THAT'S ALSO THERE.
AND OF COURSE, WE HAVE TO MAKE SURE THAT THE UNDERWRITING MEETS THE HOME AND C D B G, UH, REQUIREMENTS, WHICH ALSO HAVE SOME RULES WHEN IT COMES TO THE COST.
WE ALSO WANNA MAKE SURE THERE'S COST, UH, REASONABLENESS.
SO IT MEANS THAT THESE FEDERAL FUNDS, UM, IF THE PRIVATE SECTOR WAS BUILDING THE SAME THING, THAT WE ARE NOT PAYING MORE THAN THE PRIVATE SECTOR WITH THESE FEDERAL FUNDS.
I CAN'T SAY THAT, THAT IT'S REASONABLE.
UM, IS, IS BUILT IN THAT WE'RE NOT PAYING MORE WITH THESE FEDERAL FUNDS THAN ANYONE ELSE IN THE MARKET WOULD PAY AS WELL.
AND SO THAT'S VERY IMPORTANT TO US, AND IT ENSURES THAT WE'RE INVESTING THE FUNDING IN THE BEST PROJECTS, BUT ALSO IN THE MOST REASONABLE AND EFFICIENT MANNER.
AND WE WANNA MAKE SURE THAT IS HEAVILY WEIGHED WHEN WE EVALUATE PROJECTS.
IT'S A GREAT OVERVIEW AND, UH, SHOW SHOWING WHY IT'S SO IMPORTANT THAT IN PART OF THE EVALUATION CRITERIA, AND, UH, YOU HAVE MY FULL CONFIDENCE IN IN THIS PROCESS.
UM, LOOK FORWARD TO THIS MOVING FORWARD.
DO WE NEED A MOTION ON THIS? YES.
UH, ANY OTHER COMMITTEE MEMBERS HAVE QUESTIONS OR COMMENTS? OKAY.
HEARING NOW, THANK YOU FOR THE BRIEFING.
NOW WE'RE GONNA MOVE ON TO ITEMS NUMBER 10, 11, AND 12.
THESE ARE POST SOLICITATION, HIGH PROFILE BRIEFINGS, AND, UH, I PRESUME THAT WE WOULD BE MAKING RECOMMENDATIONS TO THE COUNCIL ON THESE YES.
[10. 19-5951 Neighborhood Improvements Bond Program - Southeast Service Center [Lori Houston, Assistant City Manager; Verónica R. Soto, Director, Neighborhood and Housing Services Department]]
THE FIRST ONE ON OUR LIST, UH, ITEM NUMBER 10 IS A NEIGHBORHOOD IMPROVEMENT BOND PROGRAM FOR THE SOUTHEAST SERVICE CENTER.AND I THINK WE HAVE THE SAME PRESENTER.
UM, FOR THE RECORD, UH, VERONICA SOTO WITH THE NEIGHBORHOOD AND HOUSING SERVICES, UH, DEPARTMENT.
SO THIS ONE IS A POST SOLICITATION BRIEFING FOR THE NEIGHBORHOOD IMPROVEMENTS BOND PROGRAM.
SO THIS IS PART OF THE CAPITAL BOND PROJECT, AND THIS IS OUR SOUTHEAST SERVICE CENTER SITE.
UM, SO WE DID AN R F P PROCESS FOR THE CONSTRUCTION OF AFFORDABLE HOUSING AT THIS SITE.
LET ME QUICKLY GIVE YOU AN OVERVIEW OF WHERE THE SITE IS.
WE ARE TALKING ABOUT, UH, 12.38 ACRES, UH, LOCATED AT THE NORTHEAST CORRIDOR OF SOUTH NEW BRUMMELS AND SOUTHEAST MILITARY DRIVE.
[00:35:01]
ONLY UTILIZING 9.38 ACRES AS THE FRONTAGE.UH, THE FRONT THREE ACRES ARE PROPOSED TO BE, UH, SOLD FOR COMMERCIAL USES.
UM, AND IT'S IN A GREAT SIDE, UH, RIGHT ACROSS FROM BROOKS.
UM, IF YOU KNOW WHERE THE MOVIE THEATER IS, IT'S RIGHT ACROSS THE STREET FROM THAT IN THE BROOKS AREA.
UH, THIS IS WITHIN OUR SOUTHEAST NEIGHBORHOOD IMPROVEMENT AREA.
AS YOU KNOW, FOR THE BOND, WE'RE LIMITED TO THOSE, UM, NEIGHBORHOOD IMPROVEMENT AREAS WITHIN THE URBAN RENEWAL PLAN.
THE SITE, UH, IS A CITY ON SITE THAT USED TO BE OCCUPIED BY, UM, TRANSPORTATION AND CAPITAL IMPROVEMENTS, OR SOLID WASTE MANAGEMENT BUILDING EQUIPMENT.
SO THEY USED IT, UH, FOR THOSE PURPOSES.
SO THERE'S SOME ENVIRONMENTAL REMEDIATION THAT OUR TEAM IS DOING AT THE SITE.
UM, AND SO WE'RE EXCITED ABOUT THIS PARTICULAR PROJECT.
FOR THIS ONE, AGAIN, WE DID A AN R F P SOLICITATION.
UH, THE ESTIMATED VALUE OF THIS FOR THE LAND IS 1.9 MILLION, AND FOR THE GAP FINANCING 4.2, AND IT'LL BE THE BOND FINANCING THAT HELPS WITH THIS PROPOSED TERM IS THREE YEARS.
WHAT WE ASKED FOR WAS FOR AFFORDABLE AND WORKFORCE UNITS.
AND WHAT WE'RE, UM, GOING TO HOPEFULLY GET OUT OF THIS, SHOULD WE MOVE FORWARD, IS 292 FAMILY SIZED UNITS.
WE'RE GONNA GET A MIX OF TWO AND THREE BEDROOMS, AND EVEN THE TWO BEDROOMS ARE GONNA BE TWO BEDROOM, TWO BATHS.
SO THERE'S NOT GONNA BE STUDIO OR ONE BEDROOM UNITS, ALL TWO AND THREE BEDROOMS. WE'RE COGNIZANT.
THERE'S GONNA BE RESIDENT SERVICES AS WELL, A COMMUNITY CENTER, A POOL, UM, GREAT AMENITIES IN, IN THIS VERY IMPORTANT AREA.
AND WE'RE ALSO GONNA HAVE SOME DEEPLY AFFORDABLE UNITS AS WELL.
SO WE'RE GETTING SEVERAL UNITS AT 30% OF THE AREA, MEDIAN INCOME, SOME UNITS AT THE 40% AREA MEDIAN INCOME.
UH, AND THE BULK OF THE UNITS WILL BE AT 60% A M I.
UM, WE ARE USING A METHOD CALLED INCOME AVERAGING, AND I KNOW WE'VE TALKED TO SEVERAL COUNCIL MEMBERS ABOUT THAT SO THAT WE CAN HAVE A BALANCE OF MORE AFFORDABLE UNITS, MORE AT THE 30 AND 40 AND 50% A M I, INSTEAD OF ALWAYS RECEIVING UNITS AT 60% A M I.
AND SO WE'RE EXCITED THAT WE WERE ABLE TO PUT THAT WITHIN OUR REQUEST.
UH, AGAIN, UH, WE DID THE R F P AND WE HAD, UH, THREE FIRMS RESPONDING.
WE, WE HAD A TWO PHASE SCORING, SO WE SCORED ON THE EVALUATION CRITERIA THAT WE CAME IN, BRIEFED YOU ABOUT, UM, WHICH INCLUDED, OF COURSE, THE DEVELOPMENT EXPERIENCE, FINANCIAL CAPACITY AND CAPABILITY OF THE FIRMS PROJECT SIDE AND TIMELINE, HOW QUICKLY THEY COULD DELIVER, UH, AND HOW MANY AFFORDABLE HOUSING UNITS WE GOT, AGAIN, INCENTIVIZING BY GIVING MORE POINTS IF WE HAVE MORE DEEPLY AFFORDABLE UNITS, AND OF COURSE, MORE POINTS IF THE UNITS WERE FAMILY SIZED.
SO YOU CAN SEE THE SCORING, I HOPE YOU CAN SEE THE SCORING IN THE TWO TABLES HERE.
WE DID BRING IN THE FIRMS FOR AN INTERVIEW, AND THE FIRM SELECTED OR PROPOSED TO MOVE FORWARD, UM, SCORED THE HIGHEST IN BOTH SETS.
AND SO THIS PROCESS, UM, IS READY TO MOVE FORWARD, UM, WITH A VERY EXTENSIVE TIMELINE.
AGAIN, WE CAME TO YOU BACK IN MARCH WITH THE PRES SOLICITATION BRIEFING.
WE HAD THE R F P, UM, RELEASED BACK IN APRIL.
AND HERE WE ARE IN AUGUST, UH, READY TO MOVE FORWARD.
UM, AND THAT CONCLUDES, UH, ONE MORE SLIDE.
UM, THAT CONCLUDES THE PRESENTATION.
THIS JUST SHOWS THE RESPONSES THAT WERE RECEIVED.
UM, THAT CONCLUDES THE PRESENTATION, AND I'D BE HAPPY TO ANSWER ANY QUESTIONS.
UH, DO WE HAVE ANY CITIZENS TO BE HEARD ON THIS? I DON'T BELIEVE WE DO.
UM, WHY DO WE HAVE TWO EVALUATIONS FOR TWO PHASES? WHY WASN'T IT JUST ONE, ONE PROJECT? SO WE BUILT THE R F P WITH THE OPTION TO DO AN INTERVIEW TO ENSURE THERE WAS, UM, CONVERSATION ABOUT THE UNIT MIX AND THE CAPACITY, UH, OF THE DEVELOPERS.
WE WANTED TO ENSURE THIS WAS A GOOD PARTNERSHIP BECAUSE WE KNOW HOW HIGH PROFILE OUR BOND PROGRAM IS.
AND BECAUSE THIS IS, THIS IS ONE OF THE, THE BETTER SITES, THE LARGER SIZE WE WERE ABLE TO SECURE.
AND SO THE SAME EVALUATION CRITERIA APPLIED IN BOTH INSTANCES.
IT JUST WAS DIGGING DEEPER INTO THE NUMBERS AND MAKING SURE THAT THE FIRMS THAT WERE RESPONDING HAD THAT FINANCIAL CAPACITY.
SO WE WERE STILL EVALUATING THE SAME THINGS, BUT WE HAD FOLLOW-UP QUESTIONS FROM THE FIRST SESSION THAT WE WANTED CLARIFICATION AND FOR THE FIRMS TO EXPAND ON SO WE COULD REALLY UNDERSTAND THEIR NUMBERS.
AGAIN, WITH THE INCOME AVERAGING, THERE WAS A LOT OF CONVERSATION.
IT'S SOMETHING RELATIVELY NEW THROUGHOUT THE COUNTRY AS THE FEDERAL
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I R S RULE CHANGED BACK IN 2018.UM, AND SO NOW IT'S BEING IMPLEMENTED AND WE WANTED TO ENSURE THAT WE COULD DO THAT WELL, AND THAT THE PROJECT WAS STILL PENCIL THOSE QUESTIONS.
WE HAD, UM, A BETTER OPPORTUNITY TO ASK IN PERSON TO ENSURE THAT HAPPENED.
AND SO THAT IS WHY THE COMMITTEE OPTED TO BRING THE APPLICANTS IN, UM, HAVE THE INTERVIEW AND AHEAD OF TIME WE PROVIDED THEM THE QUESTIONS WE WANTED TO DIG DEEPER INTO.
UM, AND SO THAT IS WHY WE WENT THROUGH THAT PROCESS.
COULD YOU TELL ME WHAT THE PROJECTED BREAKDOWN IS FOR THE TYPES AND NUMBERS OF UNITS SURE.
SO IN TERMS, I'LL GET YOU THE BREAKDOWN OF THE INCOME UNITS FIRST.
AGAIN, WE'RE TALKING ABOUT 292 UNITS OF THOSE WILL BE ABLE TO SECURE 34 AT 30% A M I.
WE'LL HAVE NINE UNITS AT 40% A M I, AND WE'LL HAVE AN ADDITIONAL NINE UNITS AT 50% A M I 140.
ONE OF THE UNITS ARE GONNA BE AT 60% A M I AND TO MAKE IT WORK, WE HAVE A FEW UNITS OVER 60% A M I.
SO WHAT WE'RE PROPOSING IS 69 UNITS THAT ARE GONNA BE AT 70% A M I AND 30 UNITS.
UH, NO, NO, NO MORE THAN 80% A M I, IT'S ACTUALLY AVERAGING ABOUT 75% A M I.
SO THIS PROJECT, UH, WILL PROBABLY BE THE FIRST ONE TO YIELD SO MANY 30% A M I UNITS, 34 OF THE UNITS, AGAIN, USING THE INCOME AVERAGING THAT WE HAVE A FEW UNITS, UM, THAT ARE OVER 60% A M I IN TERMS OF THE BEDROOMS, UM, I'M GONNA GO THROUGH THE TWO BEDROOM, TWO BATHROOM.
UM, WE'RE GONNA GET 22 UNITS AT 30% A M I.
THE RENT FOR THOSE WILL BE 372 PER MONTH.
UM, FOR A THREE BEDROOM, TWO BATH AT 30% A M I, WE'RE GONNA HAVE 12 UNITS.
AND THE RENT FOR THAT WILL BE 411 PER MONTH.
UM, I'LL JUMP TO A 60% A M I EXAMPLE, AGAIN, TWO BEDROOM, TWO BATH AT 60% A M I 106 OF THOSE UNITS.
THE RENT PER MONTH, 824 FOR THE THREE BEDROOM, TWO BATHROOM, 60% A M I UNIT, WE'RE GONNA HAVE 35 OF THOSE UNITS.
AND THE RENT PER MONTH, 932, I'LL COMPARE THAT TO THE 80% A M I.
SO FOR THOSE TWO BEDROOM, TWO BATH, WE HAVE PROJECTED 20 UNITS, AND THE RENT WILL BE 1,125 FOR THE 80% A M I THREE BEDROOM, TWO BATH.
UH, THIS IS AN AREA THAT WE KNOW, UH, IS ALSO HAVING SOME MARKET RATE, UH, DEVELOPMENT COME IN.
AND SO WE'RE HOPING THIS AFFORDABLE AFFORDABILITY AND THIS DEVELOPMENT WILL BALANCE, UH, IN THAT AREA.
UH, AND I CAN GET YOU ALL THE TABLE FOR THE UNITS THAT I DIDN'T READ, UM, RIGHT NOW.
ANY OTHER QUESTIONS FROM ANY OTHER COMMITTEE MEMBERS? YES, COUNCILWOMAN.
AND I'M NOT SURE WHO THIS QUESTION IS TO VERONICA.
IT MIGHT BE TO BEN OR, OR SOMEONE ELSE.
UM, BUT THERE'S SOME, SOME WHERE IT SAYS LIKE, LOCAL PREFERENCE PROGRAM OR VETERAN-OWNED SMALL BUSINESS.
SO I KNOW IN ANOTHER PRESENTATION THAT WAS S BETA NOT APPLICABLE.
IS THERE ANY WAY THAT I CAN HAVE LIKE A MATRIX OF WHAT DETERMINES WHEN SOMETHING'S APPLICABLE FOR THOSE? IT'S JUST FOR MY BENEFIT.
WE CAN PUT SOMETHING TOGETHER FOR YOU THAT SHOWS WHEN THOSE PROGRAMS APPLICABLE.
ANY OTHER QUESTIONS? ANY OTHER COMMITTEE MEMBERS? I DON'T.
SO YES, MS. SOTA, THANK VERONICA.
QUICKLY, UM, JUST ARE THE FIRMS ONE, TWO, AND THREE THE SAME FIRMS IN EACH OF THE PHASES? YES.
IT, IT'S ALL THREE RESPONDENTS, UM, ARE THE ONES WE BROUGHT 'EM ALL BACK FOR THE INTERVIEW.
HEARING NONE THEN, UH, THE COMMITTEE NEEDS TO MAKE A, A MOTION IF WE'RE GOING TO RECOMMEND THIS TO CITY COUNCIL FOR APPROVAL.
DO I HEAR SUCH A MOTION? SECOND.
THE COMMITTEE, UH, RECOMMENDS THIS FOR CITY COUNCIL.
ANY THE OPPOSED? HEARING NONE.
THIS IS MOVED FORWARD TO COUNCIL.
[11. 19-6020 Automated Ticketing System for the Convention & Sports Facilities Department [Carlos Contreras, Assistant City Manager; Patricia Muzquiz Cantor, Executive Director, Convention & Sports Facilities]]
ITEM NUMBER 11 IS, UH, AUTOMATED TICKETING SYSTEM FOR THE CONVENTION AND SPORTS FACILITIES.AND, UH, WE'LL BE HEARING FROM PATRICIA.
UH, GOOD MORNING, UH, AUDIT COMMITTEE.
SO, UM, THE DEPARTMENT ISSUED A
[00:45:01]
REQUEST FOR PROPOSAL.UH, THE REQUEST FOR PROPOSAL SOUGHT PROPOSALS FROM QUALIFIED RESPONDENTS TO PROVIDE AN AUTOMATED EVENT TICKETING SYSTEM AT THE ALAMO DOME, THE LILA COCKRELL, AND THE CARVER.
UNDER, UH, THIS AGREEMENT, THE SELECTED RESPONDENT SHALL BE RESPONSIBLE FOR THE DESIGN, THE IMPLEMENTATION, MAINTENANCE, PLUS SUPPORT OF ALL, SO SOFTWARE, AS WELL AS PROVIDE EQUIPMENT NECESSARY TO, UH, TO SUPPORT ALL TICKETED EVENTS.
THE ESTIMATED VALUE OF THIS, UH, CONTRACT IS 20 MILLION IN REVENUE TO THE CITY.
THE PROPOSED TERM IS A FIVE YEAR, WITH A FIVE YEAR, UH, RENEWAL OPTION.
THREE FIRMS RESPONDED, LET ME, SO THREE FIRMS RESPONDED, UM, TO THIS REQUEST FOR PROPOSAL.
UM, THE EVALUATION, UH, COMMITTEE, UH, FOR THIS CONSISTED OF CARLOS CONTRERAS FROM THE CITY MANAGER'S OFFICE.
MYSELF, CRAIG HOPKINS, A CHIEF INFORMATION OFFICER FOR THE CITY.
MELANIE KEATON, ASSISTANT DIRECTOR FOR FINANCE.
ADAM MCKENZIE, THE TICKETING BOX OFFICE MANAGER AT THE AT AND T CENTER.
DARREN DELIO, ASSISTANT VP OF ATHLETICS RESOURCE DEVELOPMENT WITH U T S A AND JULIE BAKER, A VP OF OPERATIONS FOR VALERO ALAMO BOWL.
AS FAR AS, UM, THE EVALUATION WAS CONCERNED, THE EVALUATION COMMITTEE EVALUATED EXPERIENCE, BACKGROUND, AND QUALIFICATIONS.
AND THAT WAS GIVEN, THAT WAS UP TO 35 POINTS.
AND ALSO THEY EVALUATED THE PROPOSED PLAN, WHICH TOTALED 30 POINTS.
THE REST OF THE EVALUATION CONSISTED OF PRICING FOR 20 LOCAL PREFERENCE, UH, PROGRAM FOR 10, VETERAN OWNED SMALL BUSINESS PREFERENCE PROGRAM FOR FIVE POINTS FOR A TOTAL OF A HUNDRED.
AND, UM, A WAIVER WAS APPROVED BY, UH, THE SMALL BUSINESS OFFICE FOR ANY S BETA POINTS.
AS FAR AS THE THREE RESPONDENTS, THE FIRST FORM, THE FIRST FIRM WAS, UH, EVALUATED.
THEY WERE, THE EVALUATION COMMITTEE ALSO INTERVIEWED ALL THREE FIRMS. AND THE FIRST, UH, FIRM WAS, UM, EVALUATED AND GIVEN 36.97 OF THE POINTS.
FIRM TWO, UM, RECEIVED 80 POINT 14, AND THEN FIRM THREE RECEIVED 60.6 POINTS.
THE EVALUATION, UH, COMMITTEE IS RECOMMENDING, UM, AWARD TO THE HIGHEST RANKED, UH, FIRM AS FAR AS DUE DILIGENCE.
UM, 599, UH, VENDORS WERE NOTIFIED OF THOSE FOUR ATTENDED.
UM, THE PRE-SUBMIT SUBMITTAL CONFERENCE, WHICH WAS HELD, UM, IN JANUARY.
AND THEN WE RECEIVED, UH, RESPONSES FROM THREE FIRMS. AS MENTIONED BEFORE, THERE WERE SOME EXCEPTIONS, AND THERE WAS DUE DILIGENCE REVIEW.
SEVERAL LAWSUITS WERE NOTED, BUT THE CITY ATTORNEY'S OFFICE DETERMINED THAT THE LITIGATION OR EXCEPTIONS DID NOT DISQUALIFY THE RESPONDENTS FROM EVALUATION.
THIS ITEM IS SCHEDULED FOR COUNCIL REVIEW ON SEPTE, ON COUNCIL CONSIDERATION ON SEPTEMBER 19TH.
I'M AVAILABLE TO ANSWER ANY QUESTIONS.
ARE THERE ANY CITIZENS FOR YOU TO SPEAK ON THIS ITEM? OKAY, HEARING NONE.
UM, I HAVE A QUESTION ON, UH, THE FINAL PAGE.
UH, COUNCILMAN, WE, UH, WHEN WE HAVE THESE MAJOR, UM, SOLICITATIONS, WE DO DO AN INITIAL REVIEW OF WHAT THEIR LAWSUITS ARE.
AND IT, WHAT WE LOOK AT IS IF IT'S A LARGE NATIONAL COMPANY, UH, ARE THOSE LAWSUITS CONSISTENT WITH WHAT YOU WOULD EXPECT FOR A LARGE ENTERPRISE? IT'S COUNTRYWIDE.
AND FROM WE'RE LOOKING AT THE LAWSUITS THAT WERE IDENTIFIED, THERE ARE ONES THAT WOULD BE CONSISTENT WITH, UH, LAWSUITS THAT YOU WOULD FIND AT A, AT A NATIONAL, AGAIN, A NATIONAL FIRM.
SO ARE WE, ARE YOU TRYING TO DETERMINE THE VIABILITY OF THE FIRM BECAUSE THERE MAY BE SOME LAWSUITS OR THE CREDIBILITY OF THE FIRM BECAUSE OF LAWSUITS?
COUNCILMAN, IF THERE'S ANYTHING THAT WE SEE THAT OUR FLAG AS BEING, UH, EITHER INDICATIVE OF THE WAY THEY CONDUCT THEIR BUSINESS, UH, OR INDICATIVE THAT THEY MAY HAVE AN ENTERPRISE THREATENING LAWSUIT, WE'LL CERTAINLY IDENTIFY THAT.
BUT AGAIN, THE ONES WE SAW WERE, WE'RE CONSISTENT WITH WHAT YOU WOULD EXPECT FROM A NATIONAL FIRM.
ONE OTHER QUESTION I HAVE, YOU KNOW, WE TALKED ABOUT, UH, AN EVALUATION.
UH, WE LOOK AT, UH, THE PRICE AND SO WE'RE LOOKING AT THE RETURN TO THE CITY AND WE WERE ESTIMATING ABOUT $20 MILLION.
DO WE EVER LOOK AT THE RETURN TO THE CUSTOMER AND THE COST THAT THEY END UP HAVING TO PAY FOR THOSE SERVICES? YES.
COUNCILMAN, THAT WAS CERTAINLY ONE OF THE THINGS THAT WE LOOKED AT TO TRY TO IDENTIFY, UM, BOTH AGAIN, UM, THE, THE FINANCIAL, UM, YOU KNOW, RETURN TO THE CITY, BUT AS WELL AS MAKING IT AFFORDABLE,
[00:50:01]
UH, FOR, UM, THE CUSTOMER BUYING THAT TICKET.ANY COUNCIL MEMBERS? YES, COUNCILMAN.
UM, AND I GUESS I'M, I'M GONNA ASK ANDY IF I NEED TO, JUST TO TRY TO, I WANNA MAKE SURE I STAY WITHIN THE RAILS OF THIS BECAUSE I KNOW THAT THERE WAS SOME, UH, THERE'S BEEN SOME DISCUSSION IN THE PAST REGARDING THIS TICKETING SYSTEM AND WE, WE TALKED ABOUT HOW, YOU KNOW, WE WANTED TO, UH, IT, IT'S, IT'S, AT LEAST IT'S NOT CLEAR IN THIS PRESENTATION WHETHER THERE IS A CARVE OUT FOR FUNDING, UH, FOR THE ARTS.
AND, YOU KNOW, WE, THERE WAS A, THERE WAS SOME DISCUSSION ABOUT HOW WE WERE GONNA BE, UH, UTILIZING THIS POTENTIAL SYSTEM TO HELP, UH, WITH FUNDING TOWARDS THE ARTS.
I, I THINK WE, WE, WE, WE CAN CERTAINLY DISCUSS IT AND I THINK, I THINK JUST CAN ASK, ANSWER THE QUESTION.
'CAUSE IT, I THINK IT WAS GENERALLY APPLIED OR DISCUSSED WITH ALL THREE OR ALL THE, IT WAS PART OF, IT WAS PART OF THE R F P.
SO WE HAD A REQUEST FOR, UM, YOU KNOW, THE RESPONDENTS TO PROVIDE, YOU KNOW, WHAT THEY WOULD DO AS FAR AS AN ARTS AND ENTERTAINMENT FEE FOR THE CITY.
RIGHT? AND SO, WHERE DO I SEE THAT HERE IT IS NOT, UM, BUT IT, IT WAS PART OF THE REQUEST FOR PROPOSAL AND THEY WERE ASKED TO RESPOND FOR THAT SPECIFIC ITEM.
WHEN, WHEN DO WE FIND OUT HOW DO WE LEARN ABOUT THIS? I MEAN, THAT, AGAIN, IT IS JUST, IT'S IN LINE WITH HOW WE TRY TO SET UP THE PRIORITY FOR THE SOLICITATION.
SO I'M, I'M JUST TRYING TO UNDERSTAND, UM, YOU KNOW, DID WE GET THERE? DID, IS IT, WHAT IS, WHAT IS THIS, UH, SELECTION GIVEN US IN TERMS OF CONTRIBUTION TO, TO OUR ARTS AND CULTURE? SO IT WAS PART, AND ALL THREE RESPONDENTS WERE EVALUATED ON WHATEVER THEY SUBMITTED AS PART OF THE REQUEST FOR AN ARTS AND ENTERTAINMENT FUND.
SO MAYBE I'LL JUST ADD THIS PIECE IS THAT I THINK, UM, IT'S INCLUDED IN THE PRICING CATEGORY, CORRECT? CORRECT, CORRECT.
SO I THINK AFTER TODAY, 'CAUSE AGAIN, WE KEEP THE FIRMS ANONYMOUS SO THAT, THAT WE'RE NOT IDENTIFYING WHO THEY ARE.
AND I THINK THAT'S PROBABLY THE HESITANCY AND, AND TO TALKING ABOUT A SPECIFIC FEE.
'CAUSE IT MAY TALK ABOUT WHICH FIRM IT IS, BUT AFTER TODAY, WE CAN CERTAINLY PROVIDE THAT INFORMATION TO YOU AND TO THE REST OF THE COUNCIL.
SO THAT YOU'LL HAVE THAT BEFORE IT GETS TO THE, TO THE A SESSION.
AND JUST MR. CHAIRMAN, MEMBER CARLOS CONTOS? UM, I WOULD SIMPLY ADD THAT IT, IT WAS A REQUIREMENT IN THE R F P.
THERE WAS EACH OF THE ENTITIES DID SUBMIT, AND THAT IS PART OF THE NEGOTIATIONS IN THE CONTRACT.
I I JUST WANTED TO HAVE SOME ASSURANCES OF THAT AND, UH, CERTAINLY APPRECIATE THAT AND UNDERSTAND, UH, SORT OF THE LIMITS OF THIS COMMITTEE.
SO I JUST, I HOPE TO SEE THAT AFTER, AFTER THIS MEETING.
UH, WELL I WANNA ELABORATE AND CLARIFY THAT INTO MY OWN THINKING TOO.
UH, BUT YES, WE'LL IN A MOMENT.
UH, BUT ARE WE SAYING THAT THE 20 MILLION TO THE CITY, WILL THAT INCLUDE ANY FUNDING FOR ARTS OR WILL THAT BE SEPARATE? THAT'S PART OF THE 20 MILLION.
AND, UH, WHAT WAS THE, UH, GUARANTEE IN PRIOR YEARS FOR THIS SERVICE? THERE WAS NO GUARANTEE.
IT WAS A COMMISSION BASED, UM, BASED ON THE TICKETS SOLD AND THE TYPE OF TICKETS SOLD, IT WAS A RETURN TO THE CITY.
AND WHAT WAS OUR RETURN IN THE LAST COUPLE OF YEARS OR THROUGH THE LAST, UH, HOLDER, UH, OF THIS ARRANGEMENT? HOW MUCH? IT WAS BASICALLY 55% OF THE TICKET FEES.
BUT WHAT WAS THE DOLLAR AMOUNT? ABOUT A MILLION DOLLARS.
BUT IT DEPENDED A LOT ON THE EVENT, UH, MIX THAT WE HAD FOR A PARTICULAR YEAR.
SO IT COULD HAVE RANGED ANYWHERE FROM 700,000 TO OVER A MILLION DEPENDING ON THE TYPES OF EVENTS THAT WE HAD AT OUR FACILITIES.
AND HERE WE'RE LOOKING AT A $20 MILLION RETURN TO THE CITY OVER HOW MANY YEARS? UH, UH, IT'S A FIVE YEAR WITH A FIVE YEAR RENEWAL OPTION.
SO OVER THE 10 YEARS, SO THEN WE'RE LOOKING AT GETTING $2 MILLION A YEAR ON AVERAGE ABOUT CORRECT.
UH, AND SO THAT WOULD BE SEPARATE FROM ANY MONEY THAT WOULD GO INTO ARTS OR IT'S INCLUDED? IT'S INCLUDED.
THAT CLARIFIES IT IN MY WAY OF THINKING.
WELL, AND COUNCILMAN, I I WOULD ALSO JUST ADD THE REASON I ASKED THAT BECAUSE THAT WE, WE MADE THAT A PRIOR, UH, A PRIORITY, UH, THROUGH OUR ARTS AND CULTURE COMMITTEE.
UM, AND, AND SO, UH, THIS IS SOMETHING THAT I JUST WANTED TO MAKE SURE WAS CARRIED THROUGH IN THIS SOLICITATION.
WE, WE'VE TALKED A LOT ABOUT IT.
I'M JUST GLAD TO SEE THAT IT IS, IT IS MOVING FORWARD AND IT, THIS IS GONNA HELP IN MANY WAYS.
AND WE, WE KNOW AND, UH, IN FACT WE JUST HAD THE DISCUSSION ABOUT ARTS AND CULTURE FUNDING AND, AND, AND HOW MUCH NEED THERE IS, WHETHER IT'S, YOU KNOW, UH, SMALL CULTURAL GROUPS ALL THE WAY TO THE SYMPHONY.
THIS IS GONNA BE VERY HELPFUL.
[00:55:01]
GUESS I WAS JUST THINKING ALONG THE LINES OF OTHER, UH, SOLICITATIONS THAT WE'VE HEARD WHERE THERE'S A CERTAIN MAG TO THE CITY, BUT ALSO WE KNOW THAT THAT VENDOR'S GOING TO DO ADDITIONAL THINGS.SOMETIMES IT'S, UH, CONSTRUCTION OR SOMETHING.
AND SO, YOU KNOW, THAT'S ALSO PART OF THE CONSIDERATION.
THAT'S WHY I WAS WONDERING, IS THE MONEY FOR THE ARTS SEPARATE FROM AS ADDITIONAL CONSIDERATION? I UNDERSTAND IT'S INCLUDED IN THE, THE 20 MILLION EXPECTATION CHAIRMAN.
I HAVEN'T SEEN THE DETAIL MYSELF.
SO I'M, I'M, I'M GUESSING HERE A LITTLE BIT, BUT THE ESTIMATED VALUE YOU SEE IN THE POWERPOINT WAS WHAT WAS ESTIMATED AT THE FRONT END OF THE PROCESS IN TERMS OF WHAT WE THOUGHT WE WOULD GET.
THEY OBVIOUSLY GOT THREE FIRMS THAT BID.
UM, YOU SEE A, A A, A VARIETY THERE ON THE PRICING SCORE, A SPREAD.
SO IT, IT, IT ISN'T NECESSARILY 20 MILLION THAT THEY CAME BACK WITH.
IT'S, IT'S DEPENDING UPON NEGOTIATIONS AND WHERE THAT ENDS UP, IT COULD BE A LITTLE BIT DIFFERENT.
IS THAT CORRECT? THAT'S CORRECT.
SO THAT, SO THAT WHEN WE'VE, EVERY TIME WE DO A SOLICITATION, WE GIVE YOU AN ESTIMATED VALUE, THEN YOU GET BIDS, WE NEGOTIATE, IT'S HOPEFULLY GONNA BE SOMEWHERE AROUND THAT, BUT IT'S NOT AN EXACT THAT'S REFERRING TO THE UP UPFRONT FRONT OF THE PROCESS.
ONCE WE'RE DONE TODAY, THEN YOU'LL START TO SEE INFORMATION ABOUT WHERE THEY END UP, UP ON NEGOTIATIONS.
SO I, I HAVE MOTION TO APPROVE MOVE THIS ITEM TO FULL CITY COUNCIL.
UH, WERE THERE ANY OTHER QUESTIONS? JUST WANNA BE SURE.
[12. 19-5890 Operations and Management of the Paul Jolly Center for Pet Adoptions [Maria Villagomez, Deputy City Manager; Heber Lefgren, Director, Animal Care Services]]
THE FINAL ITEM WE HAVE FOR CONSIDERATION TODAY, UH, IS, UH, OPERATIONS MANAGEMENT OF THE PAUL JOLLY CENTER FOR PET ADOPTIONS.WE'LL BE HEARING FROM A C S DIRECTOR.
GOOD MORNING, HEBER, AND GOOD MORNING COU OR COMMITTEE MEMBERS.
UM, THIS IS IN REGARDS TO THE PAUL JOLLY ADOPTION CENTER THAT IS LOCATED NEAR IN BRECKENRIDGE PARK NEAR THE ZOO, UH, FOR HISTORICAL PURPOSES.
IF YOU RECALL, IN 2012, THE CITY BUILT A NEW FACILITY ON THE CAMPUS OF AC S'S OLD, UH, OLD, OLD CAMPUS.
UM, AT THAT PARTICULAR TIME, UH, WE, UH, THE CITY MADE THE DECISION THAT INSTEAD OF RUNNING AND OPERATING THAT FACILITY OURSELVES TO PARTNER WITH A LOCAL ORGANIZATION AND, AND PROVIDE THEM THE BUILDING AND THAT THEY WOULD OPERATE AND PAY FOR THE, THE, THE FEES AND THE COST FOR OPERATING THAT FACILITY.
AND SO IT HAS BEEN AN OPERATION AND BEEN MANAGED BY A THIRD PARTY.
UH, WHAT THIS R WHAT THIS R F P, UH, DOES IS BASICALLY THE ANIMAL CARE SERVICES IS SEEKING TO, IT'S TIME TO KIND OF RENEW THAT CONTRACT OR TO, AND SO WE ARE SEEKING THE LEASE OF THE CENTER TO AN ORGANIZATION THAT WILL MANAGE AND OPERATE THE, THE ADOPTION CENTER, UH, AND THE PETCO PAVILION THAT'S LOCATED THERE.
THE SELECTED TENANT WILL BE REQUIRED TO, UM, RESCUE A MINIMUM OF 2000 PETS EACH YEAR, EITHER FROM A C S DIRECTLY OR, UH, FROM THE COMMUNITY OR FROM THE CITY OF SAN ANTONIO, AND WILL BE REQUIRED TO MAINTAIN A LIVE RELEASE RATE OF 90%, UH, FOR ALL THE PETS THAT THEY RESCUE.
THEY WILL ALSO BE REQUIRED TO PROVIDE A SERVICE TO THE COMMUNITY AND EDUCATIONAL OPPORTUNITIES THROUGH THE USE OF THE PETCO PAVILION THAT'S THERE ON THE CAMPUS.
UH, NOW THERE ON THE CAMPUS, THERE IS ALSO THE PETCO CLINIC, UH, WHERE WE PROVIDE LOW COST SPAY AND NEUTER S UH, SERVICES, UH, THAT IS SEPARATE FROM THIS R F P AND IT WILL CONTINUE TO RUN UNDER THE EXISTING OPERATOR.
UM, ALL OPERATIONS AND WILL BE OPERATED BY THIS INDIVIDUAL IN ANY REVENUE THAT IS COLLECTED THROUGH, THROUGH ADOPTIONS, UH, WILL BE RETAINED BY THE TENANT.
UM, IN, IN APRIL 19TH, THE, THE R F P WAS RELEASED SEEKING FOR QUALIFIED EXPERIENCE, UH, ORGANIZATIONS TO MANAGE AND OPERATE THE FACILITY.
UM, THE PROPOSAL, ONE PROPOSAL WAS THERE, OR ON MAY 23, 3 PROPOSALS WERE RECEIVED.
ONE OF THE PROPOSALS WERE DEEMED, UM, INCOMPLETE AND NON-RESPONSIVE.
UH, THE RECOMMENDED CONTRACT HAS A TERM OF THREE YEARS WITH A ONE THREE YEAR RENEWAL OPTION, AND THE ESTIMATED CONTRACT VALUE IS $475,000 FOR THE FIRST YEAR, AND, UH, 495, UH, FOR THE SECOND AND THIRD YEAR.
UH, THE TWO RESPON, THE TWO PROPOSALS WERE EVALUATED BY THE EVALUATION COMMITTEE.
UH, THE COMMITTEE WAS MADE UP OF, UH, CITY REPRESENTATIVES AS WELL AS COMMUNITY REPRESENTATIVES IN PARTICULAR.
UM, MARIA VILLA GOMEZ, THE DEPUTY CITY MANAGER OR MEMBERSHIP CONSISTED OF MARIA VILLA GOMEZ.
UH, YOU HAD MYSELF, WE ALSO HAD CHASE FOSSE, WHICH IS THE, AS MY ASSISTANT TO THE DIRECTOR.
UH, WE HAD CYNTHIA MARTINEZ, WHICH IS MY CHIEF OPERATIONS OFFICER, AS WELL AS, UH, BETHANY COLONIES, WHICH IS MY LIVE RELEASE MANAGER.
[01:00:02]
UH, IN ADDITION TO CITY, UH, EMPLOYEES, WE ALSO HAD RITA BROGAN, WHO IS CURRENTLY SERVING AS THE CHAIR OF THE ANIMAL CARE SERVICES ADVISORY BOARD WAS PART OF THAT.WE HAD ANNA BRADSHAW, WHO IS AN ASSISTANT, UH, TO THE DIRECTOR FOR HUMAN RESOURCES TO PROVIDE A THIRD PARTY PERSPECTIVE, AS WELL AS TIM MORROW, WHO IS THE C E O, UM, AND PRESIDENT OF THE SAN ANTONIO ZOO THAT WERE PART OF THAT COMMITTEE.
UH, THE, THE COMMITTEE MET ON JUNE 4TH, 2019.
WE INTERVIEWED BOTH, UH, RESPONDENTS.
UH, WE DISCUSSED AND RANKED THEM AS, AS IDENTIFIED HERE, AND THAT THE COMMITTEE IS RECOMMENDING, UH, THAT THE TOP RANKED, UH, RESPONDENT RECEIVE THE REWARD.
IN REGARDS TO THE PROCESS THAT WE WENT THROUGH, UH, WE DID NOTIFY ABOUT 150 INDIVIDUALS, UH, OF THE OPPORTUNITY TO, UH, TO PARTICIPATE, UM, AND TO SUBMIT A, A REQUEST OR A, A PROPOSAL OUT OF THOSE INDIVIDUALS.
THERE WERE TWO OF TWO ORGANIZATIONS THAT CAME TO THE PRES, UH, SOLUTION MEETING.
UH, THREE INDIVIDUALS DID APPLY, BUT ONE OF 'EM WAS IDENTIFIED, IDENTIFIED BY FINANCE DEPARTMENT AS BEING UNRESPONSIVE.
UM, AND SO THAT CONCLUDES, UM, CONCLUDES THE PRESENTATION WITH OUR RECOMMENDATION TO PROCEED WITH THE, THE HIGHEST RANKED ORGANIZATION.
UH, COULD YOU, UM, EXPLAIN, UH, THE ESTIMATED VALUE, WHAT DOES THAT MEAN? IS THAT VALUE TO THE CITY? COST TO THE CITY? SO THAT WOULD BE VALUE TO THE PERSON HOLDING THE LEASE? CORRECT.
THAT WOULD BE THE COST, UH, TO THE CITY, THE ANTICIPATED COST ASSOCIATE WITH THE CITY IN THE PAST, UH, THE OPER, THE FACILITY HAS BEEN OPERATED AT THE COST OF THE AGENCY.
UH, IT IS FAIR TO UNDERSTAND THAT THE COST OF OPERATING A FACILITY LIKE THAT IS EXPENSIVE.
UM, OUR ESTIMATES ARE ABOUT 10, UH, OVER A MILLION DOLLARS TO OPERATE THAT ON A YEARLY BASIS.
AND SO THE PROPOSALS CAME BACK REQUESTING ASSISTANCE WITH THAT OPERATING COST.
ANY OTHER QUESTIONS FROM ANY OTHER COMMITTEE MEMBERS? YES, COUNCILWOMAN.
WHAT HAPPENS IF THEY DON'T MEET THE 90% LIVE RELEASE RATE, AND IS THERE METRICS IN PLACE, MAYBE QUARTERLY TO MAKE SURE THAT THEY'RE ON TASK TO MEET THOSE? YEAH, SO IN, IN THE PAST, AND WE'LL CONTINUE IT IN THE PAST, WE HAVE, UM, MONTHLY, UH, REPORTING STRUCTURES WHERE THEY NEED TO REPORT THEIR PERFORMANCE, WHAT'S HAPPENING, UM, THE, THE CURRENT AND, UH, THE RECOMMENDED, UM, CONSEQUENCES.
IF THEY'RE NOT MEETING THOSE, THOSE OBLIGATIONS THAT THE CITY AT ANY POINT OF TIME, UH, HAS THE ABILITY TO TERMINATE THAT, THAT RELATIONSHIP.
AND THEN MY SECOND QUESTION IS, CAN YOU ELABORATE ON THE, I KNOW THAT THEY WERE GRADED ON THEIR SUSTAINABILITY PLAN, CORRECT? CAN YOU ELABORATE A LITTLE BIT? YOU BET.
SO THE SUSTAINABILITY PLAN TOOK A LOOK AT WHAT IS BASED UPON THE PROPOSAL THAT THEY HAD, AND BASED UPON WHAT THEY WERE ASKING OF THE CITY, UH, WAS TAKING A LOOK AT WHAT, UH, WHAT WERE THEIR CAPABILITIES TO BE ABLE TO SUSTAIN THAT PLAN AND TO REMAIN VIABLE.
PART OF THAT WAS ALSO THE SUSTAINABILITY OF THE CITY.
COULD WE, UH, IS THAT SUSTAINABLE FOR THE CITY TO BE ABLE TO PROVIDE THAT? OKAY.
AND, AND IT'S RELATED TO MY FIRST QUESTION BECAUSE I THINK THAT, AND, AND YOU ALL ARE THE EXPERTS IN THIS, SO JUST PLEASE HELP ME UNDERSTAND, IF WE ONLY HAD TWO FIRMS APPLY, AND LET'S SAY THAT FIRM ONE ISN'T DOING STELLAR OR SOMETHING HAPPENS, DO WE HAVE TO, LIKE, WHAT'S THE PROCESS LIKE? DO WE HAVE TO GO OUT AND RESUBMIT KNOWING THAT WE ONLY GOT TWO THIS GO AROUND? OR IS THERE A WAY THAT WE INCREASE THE NUMBER OF PARTICIPANTS? IS THERE JUST NOT PEOPLE OR ORGANIZATION THAT'S CAPABLE OF DOING THIS ALL? SO IN THE PAST, UH, THERE ARE, WHEN WE TAKE A LOOK AT THE GRAND SCALE OF WHAT'S HAPPENING, THAT THERE IS A SMALL NUMBER OF QUALIFIED, UH, ORGANIZATIONS THAT CAN PROVIDE THAT SERVICE.
UH, THERE ARE ALWAYS OPTIONS THAT ARE AVAILABLE.
UH, WHEN PERFORMANCE IS NOT BEING MET, WE CAN CONTINUE TO WORK WITH THEM.
WE CAN PUT IT OUT FOR BID, AS YOU INDICATED, TO SEEK, UH, AT ANY POINT OF TIME, THE CITY IS ABLE TO STEP IN AND OPERATE THAT FACILITY OURSELVES IF WE FEEL THAT'S NECESSARY.
I WAS LIKE, WHAT'S OUR BACKUP PLAN IF WE ONLY HAVE TWO WHO SUBMIT IT AND IT DOESN'T LOOK LIKE THERE'S AN OVERWHELMING RESPONSE? AND THAT WAS MY CONCERN.
OKAY, COUNCILMAN, UH, MY QUESTION IS, IS KIND OF IN LINE WITH THAT, UM, HERE.
SO HELP US, UH, TO UNDERSTAND.
I THINK THE, UH, SOME OF THE CONCERNS WE'RE HEARING IS, IS ARE WE MEETING THE TARGETS NOW AND DID WE CHANGE THAT? DID WE CHANGE THE TARGET? ARE WE LOOKING TO CHANGE THAT TARGET TO SORT OF, UH, ADJUST WHAT THOSE NUMBERS
[01:05:01]
ARE? SO I HELP ME UNDERSTAND, UH, 'CAUSE WHEN I SEE THIS, I, I LOOK AT BOTH EXPERIENCE, BACKGROUND, QUALIFICATIONS, PROPOSED PLAN, AND THEN SUSTAINABILITY PLAN.I MEAN, THEY ALL SEEM TO KIND OF RELATE TO THAT ISSUE OF SORT OF MEETING THESE TARGETS.
AND IF, IF, IF THIS IS SOMETHING THAT WE'RE SEEING AS AN ISSUE, I MEAN, HOW, HOW ARE WE ADDRESSING THAT? YEAH.
UM, SO IN THE PROPOSAL ITSELF, WE PLACED IN THERE A EXPECTATION OR A DESIRE TO BE ABLE TO HAVE THE ORGANIZATION SAY, WHAT CAN YOU DO IF, IN ORDER TO BE ABLE TO PULL 2,500 HUNDRED PETS, UH, FROM ANIMAL CARE SERVICES? HOWEVER, PART OF THE QUESTION, AND PART OF THE OPTION THAT WAS MADE AVAILABLE TO THEM AS PART OF THE SUSTAINABILITY SECTION WAS IF THERE IS ANY ADJUSTMENTS TO THE REQUIREMENTS THAT WOULD BE NECESSARY IN ORDER FOR THE AGENCY TO BE SUCCESSFUL AT IT, UH, TO INCLUDE THAT AS PART OF THE PROPOSAL.
AND SO THERE, THERE WERE SOME, UH, OF THE, OF THE TWO ORGANIZATIONS THAT, UH, APPLIED THAT BOTH OF THE ORGANIZATIONS, UM, EX UH, PRESENTED PROPOSALS THAT DID NOT MEET THAT 2,500, UH, INITIAL REQUIREMENT AND SOUGHT, UH, A CHANGE NUMBERS.
WHAT, WHAT'S THE CHANGE? SO ONE OF THEM CAME BACK AT, UH, BEING ABLE TO DO WITH THAT FACILITY OF 2000 AND THE OTHER ORGANIZATION CAME BACK AND SAYS, WE CAN DO 500.
AND SO WHAT WAS IT BEFORE? SO BEFORE THE, THE MOST CURRENT CONTRACT THAT THEY HAD, IT WAS ON A, UH, INCREASED SCALE.
SO THE FIRST YEAR IT WAS ABOUT 2300, UH, THIS, AND THEN EACH YEAR IT HAD TO INCREASE BY ABOUT 33%.
SO IT WENT FROM ABOUT 2,500 TO ABOUT 3000 TO, RIGHT NOW IT'S ABOUT 35.
AND WE'RE NOT MEETING THAT AT ALL.
WE'RE NOT MEETING THAT NUMBER AT ALL.
AND WHY, WHY DID WE, WHY WERE WE AT 3,500? WHY ARE WE NOT AT 3,500? WHY NO, WHY, WHY DID WE PICK THE NUMBER 3,500? SO THAT WAS, THAT WAS A PROPOSAL THAT WAS PRESENTED TO REMEMBER THAT THE, THE, THE, UH, THE CONTRACT THAT WE CURRENTLY HAVE WAS, UH, DEVELOPED AND, UM, BACK AT A TIME WHEN OUR LIVE RELEASE RELEASE RATE WAS A LITTLE BIT LOWER, WE WERE AT THAT PARTICULAR TIME, I BELIEVE AROUND 85%.
UM, AND SO WHEN WE TOOK A LOOK AT THE, UH, THE PARTNERSHIPS THAT WE HAD AT THAT TIME, AND A LOT OF THE SERVICES THAT WE HAD AVAILABLE AT THAT TIME THAT, UH, THAT WAS WHAT THE, THE, UH, THE AGENCY FELT THAT THEY WERE ABLE TO DO.
UM, OBVIOUSLY IN THE COURSE OF THE LAST THREE YEARS WITH ANIMAL CARE SERVICES, THERE HAVE BEEN A LOT OF CHANGES.
SO WHAT'S THE IMPACT OF, 'CAUSE THAT'S, THAT'S A, THAT'S, THAT'S ALMOST HALF WHAT'S, WHAT'S THE IMPACT OF GOING FROM 3,500 TO 2000 TO A C S? SO, SO THE PROPOSAL DOES NOT CREATE AN, UH, AN IMPACT THAT IS WHAT IS HAPPENING RIGHT NOW.
NOW, KEEP IN MIND THAT WE HAD TWO PROPOSALS.
ONE PROPOSAL WAS WHEN WE TAKE A LOOK AT, UH, THE PERFORMANCE.
ONE PROPOSAL WAS TO MAINTAIN THE CURRENT, UH, CURRENT, UH, THE OTHER ONE WOULD ACTUALLY RESULT IN A DECREASE.
OKAY, I GUESS MAYBE I NEED A BETTER WORD FOR IMPACT.
WHAT I, I GUESS WHAT I'M GETTING AT IS THAT WE'RE NOT MEETING THOSE NUMBERS NOW, AND WE'VE, WE'RE, WE'RE, WE'RE SETTLING ON ON A MUCH LOWER NUMBER TO SAY THAT, AND WE'RE, WE'RE GONNA BE ON TARGET, BUT IN FACT, WE'VE JUST SIMPLY LOWERED THE TARGET.
ISN'T THAT CORRECT? SO THE, THE PROPOSAL, THE PROPOSALS THAT WERE PROVIDED, BOTH OF THEM DID LOWER IT FROM WHAT, UH, THE INITIAL PROPOSAL REQUESTED.
SO YOU'RE CORRECT THAT THEY ARE BEING, THAT THEY ARE BEING LOWERED.
UM, WHAT I, WHAT I CAN TELL YOU THAT THERE ARE A COUPLE OF FACTORS TO TAKE INTO CONSIDERATION WHEN WE TAKE A LOOK AT THE, UH, THE PERFORMANCE IN COMPARISON TO THE CONTRACT THAT IS CURRENTLY THERE, THAT THE PERFORMANCE IS, UH, BELOW THE CURRENT, UH, REQUIREMENTS OF THE CONTRACT.
NOW, WE'VE HAD THE OPPORTUNITY OF HAD THIS BUILDING BEING OPERATED BY TWO AGENCIES, UM, BOTH CONTRACTS.
UH, IF YOU TOOK A LOOK AT THE CONTRACT BY THEMSELVES, BOTH AGENCIES WERE BELOW THE CONTRACTUAL REQUIREMENTS.
UH, WHEN WE TAKE A LOOK AT THE PERFORMANCE IN COMPARISON TO THE CONTRACTUAL REQUIREMENTS, THAT THEY ARE SIGNIFICANTLY BELOW, BECAUSE WE HAVE KIND OF IN THE LAST CONTRACT RAISED THOSE REQUIREMENTS, WHEN WE TAKE A LOOK AT PERFORMANCE, THAT THERE'S BEEN A CONSISTENT PERFORMANCE, UM, AT THAT FACILITY AMONG, AMONG ALL OF THE ORGANIZATIONS THAT'S OPERATED IT, RIGHT? BUT IF WE LOWER THE TARGET, SO IF WE'RE NOT MEETING THE TARGET NOW, AND THEN WE LOWER THAT TARGET, UM, AND, AND DON'T MEET THAT TARGET, I, I GUESS THE, THE BIG QUESTION IS THEN WHAT? SO AGAIN, THE OPTIONS ARE AVAILABLE FOR US THAT, UH, WE, WE DO HAVE THE ABILITY TO, UH, FOLLOW THE OPTIONS OF PUTTING OUT FOR BID, UH, THE CITY STEPPING IN AND TAKING OVER AND OPERATING THAT.
[01:10:01]
AND SO THERE ARE THOSE OPTIONS THAT ARE AVAILABLE.WELL, I GUESS, I GUESS WHAT I'M, SO THIS IS KIND OF CUTTING TO, I THINK THIS WHOLE SOLICITATION ITSELF IS THAT DID, UM, YEAH, I, I, I GUESS I'M, I'M HAVING TROUBLE SEEING HOW WE'RE LOWERING THE, THE TARGET AND, AND, UM, YOU KNOW, CREATING A, A, A MUCH LOWER BAR AND THEN IF THAT DOESN'T GET MET, UH, HOW, HOW WE'RE ABLE TO RESPOND.
AND THAT'S, I GUESS THAT'S WHY I'M, THAT'S WHY I SEE IT.
I MEAN, THERE'S GOTTA BE AN IMPACT.
SO IT, IT WAS A, IT WAS A DISCUSSION THAT WAS A TOPIC THAT THE SELECTION COMMITTEE DID KIND OF DISCUSS AND TALK ABOUT OF SEEING, HEY, WE'RE SEEING THESE PROPOSALS THAT ARE LOWER NOW.
THERE IS, THIS IS THE, THE THIRD TIME THAT I'VE BEEN INVOLVED, UH, IN THE SELECT IN THIS PARTICULAR SELECTION COMMITTEE.
WHAT I CAN TELL YOU IS THAT, UM, WE HAVE A LOT MORE DATA GOING INTO THIS ONE THAN WHAT WE HAVE HAD IN THE PAST.
SO WHEN WE TAKE A LOOK AT ACTUAL PERFORMANCE OF WHAT THE AGENCIES ARE DOING, THAT, TO BE HONEST WITH YOU, THAT 2000 MARK IS A MORE CONSISTENT WITH WHAT, UM, THAT FACILITY HAS DONE IN THE PAST.
UM, KEEP IN MIND THAT IN THE LAST THREE YEARS, WE'VE IMPOUNDED 31,000 PETS, UM, WHILE MAINTAINING THE 90% LIVE RELEASE RATE.
AND SO THE QUESTION COMES IN IS IF WE RAISE THAT TO EVEN MORE, DO WE EVEN HAVE THOSE, UH, WE, WE COME INTO THAT QUESTION OF SAYING, DO WE EVEN HAVE THE PETS THAT ARE AVAILABLE TO BE ABLE TO PROVIDE AT THAT LOCATION? UM, SO WHEN WE TAKE A LOOK AT THAT, WHEN WE HAD A DISCUSSION AS A COMMITTEE ABOUT THE PROPOSALS AND THE RECOMMENDATIONS THAT THEY PRESENTED OF SAYING, THIS IS WHAT WE CAN DO WHEN WE COMPARED IT TO WHAT HAS HISTORICALLY BEEN DONE AT THAT FACILITY, THAT THAT IS BEING CONSISTENT WITH WHAT HAS HISTORICALLY BEEN DONE.
DOES THE SIZE OF THE CONTRACT CHANGE? LIKE WHAT DO YOU MEAN BY THE SIZE? WELL, I MEAN, UH, THE COST.
SO YES, THERE IS A COST THAT'S ASSOCIATED WITH IT.
IN THE PAST, UH, THE, THE PROPOSAL, UH, PLACED ALL THE FINANCIAL BURDEN ON THE, ON THE NOT-FOR-PROFIT ORGANIZATION TO OPERATE IT.
UH, SO THEY HAD THE OBLIGATION TO PAY FOR EVERYTHING.
IN THIS PROPOSAL, BOTH OF THE PROPOSALS THAT WERE PRESENTED, UH, THEY HAD PRESENTED A, UH, NEED FOR THE CITY TO, TO SHARE IN SOME OF THAT EXPENSE AND SOME OF THAT RESPONSIBILITY THAT'S ASSOCIATED WITH IT.
UM, OF THE TWO OF THE TWO PROPOSALS THAT WERE PRESENTED, UH, ONE PROPOSAL WHEN WE TOOK A LOOK AT IT AT A PER ANIMAL BASIS, ONE PROPOSAL, UH, COMES OUT TO BE A COST OF THE CITY, ABOUT $225 PER ANIMAL.
UH, THE OTHER PROPOSAL WAS GOING TO BE ABOUT A $740 COST PER ANIMAL.
AND SO THAT WAS TAKEN INTO CONSIDERATION AS WELL.
UM, UH, I GUESS, YOU KNOW, I JUST, I GUESS SOME QUESTIONS HERE AND PART OF IT IS YOU TO, UM, I GUESS I'D LIKE TO BE, UM, BRIEFED A LITTLE FURTHER ON THIS IF POSSIBLE.
AND I MEAN, I, I DON'T, I KNOW THAT WE'RE JUST REVIEWING THE PROCESS OF THE SOLICITATION HERE, AND, AND CERTAINLY IF THERE'S JUST AN OPPORTUNITY FOR, I KNOW MYSELF AND I'M SURE MY COLLEAGUES WOULD LIKE TO KIND OF LEARN MORE ABOUT THAT.
I THINK WE NEED TO KIND OF GET FURTHER BRIEFED ON THIS, ON THESE PARTICULARS AND, UM, AND THEN, YOU KNOW, MAYBE GET A, GET AN UPDATE AFTER THE, YOU KNOW, SORT OF MORE OF A REGULAR UPDATE AT SOME POINT AFTER THE, THE CONTRACT'S BEEN AWARDED.
I, I JUST, I'M A LITTLE, I'M, I'M A LITTLE NERVOUS ABOUT THIS SORT OF CHANGE IN THE TARGET.
AS SOON AS, UH, AS SOON AS UH, PURCHASING GIVES ME THE OKAY TO BE ABLE TO, UH, COME, I HAVE NO PROBLEM OF COMING AND SPEAKING TO YOU IN DETAIL.
SO THE, THE MOTION HERE WOULD BE TO MOVE IT TO FULL CITY COUNCIL.
THIS WILL ALLOW THIS TO SORT OF OPEN UP A LITTLE MORE, BUT THERE'S NO RUSH TO GET IT TO CITY COUNCIL.
CAN WE, CAN WE GIVE HEBER SOME TIME TO BRIEF COUNCIL BEFORE IT? I MEAN, DO WE HAVE TO SET THAT DATE? WE'RE JUST APPROVING IT TO MOVE TO A SESSION? THAT'S CORRECT, SIR.
YOU'RE JUST MOVING THE ITEM FORWARD TO THE, A SESSION, BUT YOU'RE NOT SETTING A SPECIFIC TIME FOR THAT.
SO IT'D BE MORE BASED ON CON DO YOU HAVE AN ISSUE WITH CONTRACTING TIME? YEAH, SO THE CONTRACT, UH, THE TERM ENDS, UH, AT THE END OF OCTOBER.
AND SO RIGHT NOW WE WERE PLANNING ON BRINGING IT TO CITY COUNCIL IN THE MIDDLE OF SEPTEMBER.
IF YOU WOULD LIKE, WE CAN MOVE THAT.
WELL, I, I, WE GOT A BIG BUDGET.
WE'RE PROBABLY, I MEAN, I THINK WE'RE ALL PRETTY BUSY, BUT SINCE YOU GOT TILL OCTOBER, I WOULD, I WOULD JUST, MY REQUEST IS LET'S, LET'S, LET'S DO THIS AFTER THE BUDGET, BUT I, I I, I'M GONNA REQUEST A, A BRIEFING HERE.
UH, I'LL MOTION TO, TO MOVE THIS FORWARD TO FULL CITY COUNCIL, UH, WITH THE CAVEAT THAT, YOU KNOW, WE, WE'VE GOT
[01:15:01]
SOME TIME, LET'S NOT SQUEEZE IT IN WHILE WE'RE STILL WORKING ON OUR BUDGET.LET'S, LET'S JUST MAKE SURE THERE'S TIME FOR US TO, TO REVIEW THIS A LITTLE MORE THOROUGHLY.
THERE'S MY MOTION MOTIONS BEEN MADE.
UM, ANY OTHER QUESTIONS FROM ANY OF THE COMMITTEE MEMBERS? I DID HAVE ONE WHICH COME TO MIND, AND FOR EXAMPLE, IF THE REQUIREMENT IS THAT WHOEVER RUNS THE PAUL JOLLY CENTER NEEDS TO HELP ADOPT OUT 2000 ANIMALS IN A YEAR, THEY GET THEIR ANIMALS FROM US, DON'T THEY? CORRECT.
SO, UH, THE, THE, THE PAST CONTRACTS, UH, ARE THAT ALL OF THE ANIMALS THAT ARE ASSOCIATED THAT GO INTO THAT FACILITY IS COMING FROM US.
OKAY? NOW, THE PROPOSAL THAT WAS PRESENTED TO US WAS KINDA LIKE A MIXED BREED THAT THEY WOULD CONTINUE TO PULL TO US, BUT THAT THEY WOULD ALSO CREATE A, UH, A SEPARATE INTAKE FACILITY WHERE RESIDENTS OF SAN ANTONIO, IT CAN ONLY BE RESIDENTS OF SAN ANTONIO, CAN COME AND BRING THE PETS DIRECTLY TO THEM.
UH, WHICH THEN HELPS US OUT AS AN AGENCY BECAUSE IT'S, UH, INSTEAD OF IT COMING TO US AND UH, FILLING IN SPACE, IT CAN GO DIRECTLY THERE.
SO REALLY WHAT WE'RE SAYING IS THIS DOESN'T MEAN THAT THE CITY OF SAN ANTONIO WILL BE WORKING WITH FEWER PETS.
WHAT IT MAY MEAN IS THAT YOU'VE GOT ANOTHER AGENCY WORKING ON BEHALF OF THE CITY, SO TO SPEAK, TO GET THOSE PETS PLACED.
AND IF THEY CAN'T DO IT, IT'S UP TO YOU AND YOUR OFFICE TO TRY AND DO IT.
NOW ALSO REMEMBER THAT THE PROPOSAL DOES NOT DECREASE THE SERVICES, RIGHT.
THAT ARE CURRENTLY PROVIDED, RIGHT? YES, IT IS A DECREASE IN THE CONTRACT FROM THE CURRENT CONTRACT, BUT IT DOES NOT, THE PROPOSAL DOES NOT ACTUALLY DECREASE WHAT'S CURRENTLY BEING DONE, WHEREAS THE OTHER, THE SECONDARY PROPOSAL WAS, WOULD RESULT IN A CASE THAT'S THE SAME WITH ALL OF THE DIFFERENT AGENCIES THAT WE CONTRACT WITH.
A LOT OF THEM MAY FALL SHORT OF THEIR CONTRACTUAL AGREEMENT WITH US.
SIMPLY MEANS YOUR, YOUR DEPARTMENT AND YOUR FACILITY NEEDS TO WORK THAT MUCH HARDER TO BE ABLE TO SAVE THAT MANY ANIMALS, CORRECT? YEAH.
MOTION'S BEEN MADE AND, AND SECONDED.
AND, UH, NEXT CON, THAT CONCLUDES OUR ORIGINAL AGENDA.
[Consideration of items for future meetings]
UH, ASK ARE THERE ANY OTHER ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS? JUST, UH, COUNCIL, YOU DID MOVE SOME OF THE AUDITS, UH, FROM THIS AGENDA.SO OUR NEXT AUDIT COMMITTEE IS SEPTEMBER 17TH.
SO THERE'S FIVE AUDIT REPORTS ALREADY ON THAT TENTATIVE AGENDA THAT WE'LL BE PRESENTING OF THOSE THAT HAVE BEEN ISSUED RECENTLY AND IT MAY BE SOME MORE ADDED BY THEN, RIGHT? THAT'S SOMETHING I ASKED TO KIND OF REDUCE THE SIZE OF THE AGENDA WE HAD BEFORE US TODAY.
ANYBODY HAVE ANY ITEMS THEY'D LIKE TO SEE? OKAY, HEARING NONE.
SCHEDULED MEETING SEPTEMBER 17TH.