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>> VIAGRAN: ALL RIGHT. IT LOOKS LIKE WE HAVE GOT THREE OF OUR MEMBERS HERE. ALL RIGHT. GOOD MORNING.
HAPPY NEW YEAR. ALL RIGHT. GOOD MORNING.
HAPPY NEW YEAR. THE TIME IS NOW 10:04:00 A.M. O THE MEETING OF THE AUDIT COMMITTEE IS NOW CALLED TO ORDER. MADAM CLERK, CAN NOW NOW CALL THE ROLL?
>> VIAGRAN: GREAT. I'LL BE ALLOWING THE MEMBER SPEAKERS TWO MINROUNDS OF SPEAKING. THE FIRST IS MINUTES. ARE THERE ANY CORRE CORRECTIONS TO THE MINUTES? ANY CORRECTIONS? CAN I GET A MOTION AND A SECOND TO APPROVE THE MINUTES? ALL IN FAVOR, SAY AYE. ALL OPPOSED, SAY NO. MOTION CARRIES.
MADAM CLERK, DO WE HAVE ANY PUBLIC COMMENTS? >> CLERK: WE HAVE NO MEMBERS OF
THE PUBLIC SIGNED UP TO SPEAK. >> VIAGRAN: ALL RIGHT. WE'LL MOVE ON TO THE NEXT PORTION, ITEMS 2 AND 3 ON CONSENT AGENDA, AND THEY'RE FINAL INTERNAL AUDIT REPORTS. ARE THERE ANY ITEMS WHICH MEMBERS WOULD LIKE TO PULL FROM THE CONSENT AGENDA TO BE HEARD INDIVIDUALLY? OKAY. GREAT. CAN I GET A MOTION TO APPROVE THE CONSENT AGENDA? I'VE GOT A MOTION AND A SECOND.
ALL IN FAVOR, SAY AYE. ALL OPPOSED -- AYE. OKAY.
ALL OPPOSED, SAY NO. MOTION CARRIES. ALL RIGHT.
NOW WE'RE GOING TO MOVE ON TO OUR INDIVIDUAL ITEMS, THIS IS THE FUN PORTION OF THIS MEETING BECAUSE IT'S PRESOLICITATION HIGH PROFILE BRIEFINGS.
P WE HAVE TWO PRECO PRECOLUMBUSSATION HIGH PROFILE BRIEFINGS FOR INDIVIDUAL CONSIDERATION. MADAM CLERK, PLEASE READ THE CAPTION FOR ITEM 4.
>> CLERK: A BRIEFING OF THE RELEASE OF A SOLICITATION FOR ONE CONTRACT TO PROVIDE THE PUBLIC WORKS DEPARTMENT WITH CONSTRUCTION SERVICES FOR THE SEALING DRAINAGE PHASE 4, LOWRY DRIVE TO ST. CLOUD AND PLACID DRIVE FROM SAGE DRIVE TO PAR DO CIRCLE IN THE ESTIMATED TOTAL
VALUE OF $22,741,177. >> VIAGRAN: THANK YOU. THE FLOOR IS YOURS.
>> I AM RAZZ CITY, DIRECTOR OF PUBLIC WO WORKS.
PUBLIC WORKS DEPARTMENT IS STATING REQUEST FOR PROPOSAL FOR CONSTRUCTION OF DRAINAGE PHASE 4, COMPLETION SOMEWHERE IN 2024.
ESTIMATED VALUE OF 22.7 MILLION. OF COURSE IT IS A NEW CONTRACT. THE SOLICITATION WILL SEEK ONE FORM TO PROVIDE SERVICES FOR PHASE 4. THERE ARE 457 VENDORS IN CVR THAT COULD PROVIDE SERVICES AS NEEDED. THE SERVICE STATION WILL BE ADVERTISED THROUGH THE CI CITY'S NORMAL PROCESS, AND ( INDISCERNIBLE ) WILL CONSISTENT OF CITY MANAGER'S OFFICE, PUBLIC WORKS DEPARTMENT, AND SAN ANTONIO WATER SYSTEM.
SO THE REQUIREMENT IS EXP EXPERIENCE, BACKGROUND, PERSONA AND CONSULTING, UNDERSTANDING THE PROPOSAL MANAGEMENT PLAN, 1 MINUTES, EXPERIENCE FROM SAN ANTONIO REGION AND PEST, 10 POINTS. PRICE PROPOSAL 40 POINTS. CONTRACTOR PROGRAM IS 10 POINTS. AUDIT REQUIREMENT IS -- FINANCIAL STATEMENT IS NOT REQUIRED, LOCAL PROOF PROGRAM I NOT APPLICABLE, VETERAN OWNED SMALL BUSINESSES PROGRAM NOT APPLICABLE ALSO. 14% NWB REQUIREMENT AND 1% AABE REQUIREMENT.
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GOAL SETTING MUST CONSISTENT OF NEIGHBORHOOD AND HOUSING SERVIC DEPARTMENT, ECONOMIC DEVELOPMEN DEPARTMENT, FINANCE DEPARTMENT, AND CITIZEN MEMBER. THE SOLICITATION WILL BE RELEASED ON FEBRUARY 5, 2025 WITH PRESUBMITTAL PLANNED FOR FEBRUARY 19, 2025.PROPOSAL IN RESPONSE TO SOLICITATION DUE MARCH 25, 2025.
PUBLIC WORK RETURNING TO OTHERS IN JUNE 20, 2025, WITH COUNCIL APPROVAL IN AUGUST OF 2025. THIS IS THE END OF MY PRESENTATION, MADAM CHAIR.
I'M HAPPY TO TAKE ANY QUESTIONS. >> VIAGRAN: OKAY.
THANK YOU, RAZZ, RAZI. I THINK THE -- EVERYTHING LOOKS GOOD IN TERMS OF THE PROJECT TIMELINE FOR THE P PRESUBMITTAL CONFERENCE, AND I GUESS THIS MIGHT BE A LEGAL QUESTION BECAUSE WE'VE RUN INTO THIS BEFORE AND I DON'T WANT TO RUN INTO THIS HERE, MAKING SURE THAT THE APPLICANTS ARE AWARE OF OUR BLACKOUT PROCESS. WHEN DO WE -- WHEN DOES THAT BEGIN FOR THEM? WHEN THEY SUBMIT THE R RFP?
OR... >> FOR THE RESTRICTIONS ON THE COMMUNICATIONS.
>> VIAGRAN: YEAH. RESTRICTIONS ON COMMUNICATION.
BECAUSE THAT'S -- THAT'S CANDIDATES AND CURRENT COUNCILMEMBERS.
>> YEAH. TWO DIFFERENT THINGS. ON RESTRICTIONS OF COMMUNICATIONS, IT'S GOING TO START IMMEDIATELY.
AS FAR AS THE POLITICAL CONTRIBUTION, THAT'LL BE 10 DAYS AFTER THE RFP.
>> VIAGRAN: OKAY. I WANT TO MAKE SURE BECAUSE IN THIS COMMITTEE WE'VE TWICE RAN INTO THAT ISSUE AND WE WANT TO MAKE SURE EVERYBODY UNDERSTANDS ON -- IN YEAR WITH -- AND IT'S EVERY YEAR, BUT THAT INCLUDES CANDIDATES FOR CONTRIBUTORS. ALL RIGHT.
>> AND CHAIR, THE ONLY THING I WOULD ADD YOU MENTIONED DURING THE P PRESUBMITTAL CONFERENCE, WE TALK ABOUT THOSE THINGS HEAVILY WITH THE INDIVIDUALS THAT ATTEND TO MAKE THEM AWARE OF THOSE REQUIREMENTS.
>> VIAGRAN: OKAY. GREAT. I JUST WANT TO MAKE SURE OF THAT. AND I THINK THAT IS THE ONLY -- AGAIN, IT -- WHILE THIS IS IN DISTRICT 7, BECAUSE IT IS -- IT IS A DRAINAGE PROJECT, IT DOES IMPACT OUR ENTIRE CREEK SYSTEM, SO WE WANT TO MAKE SURE THAT THIS STAYS ON THE TIMELINE, AND IT DOES -- AND IT DOES MOVE WITH THE APPLICANTS THAT ARE BEST QUALIFIED TO DO THIS.
DOES MY COMMITTEE HAVE ANY QUESTIONS? AND FOR THE RECORD, LET IT SHOW THAT OUR COMMITTEE MEMBER TREVINO HAS ARRIVED. DO YOU HAVE A QUESTION? NO. ALL RIGHT. IF THERE AREN'T ANY QUESTIONS, THANK YOU. THIS WAS FOR BRIEFING ONLY. LET'S MOVE ON.
MADAM CLERK, PLEASE READ THE CAPTION FOR ITEM 5. >> CLERK: ITEM 5 IS A BRIEFING ON THE RELEASE OF A SOLICITATIO FOR ONE CONTRACT TO PROVIDE EMPLOYEE LIFE INSURANCE IN THE ESTIMATED TOTAL VALUE OF $12,700,000 FOR A 3-YEAR TERM WITH 2, 1-YEAR RENEWAL OPTIONS.
>> VIAGRAN: GREAT. RENNET, THE FLOOR IS YOURS.
>> GOOD MORNING, I'M THE DIRECTOR OF HUMAN R RESOURCES.
WE ARE GOING TO BE SE SEEKING PROPOSALS FROM ORGANIZATIONS THAT COULD PROVIDE GROUP LIFE ADDITIONAL AD AND D SUPPLEMENTAL LIFE, INDEPENDENT LIFE INSURANCE FOR MORE THAN 13,000 EMPLOYEES.
THE RFP -- WE WOULD LIKE TO BE RELEASING THAT AT THE END OF THIS MONTH.
THE PROPOSED TERM IS 3 YEARS WITH 2, 1-YEAR OPTIONS.
THE ESTIMATED VALUE OF THE CONTRACT IS 2.54 MILLION ANNUALLY AND 12.7 MILLION TOTAL, AND THE FUNDING SOURCE WOULD BE OUR BENEFITS FUND. OUR CURRENT CONTRACT EXPIRES AT THE END OF THIS CALENDAR YEAR. WE'RE HOPING TO HAVE OUR NEW VENDOR IN PLACE IN TERM FOR OPEN ENROLLMENT NEXT YEAR. THERE ARE ABOUT 126 QUALIFIED VENDORS THAT WE WILL BE REACHIN OUT TO AND PROACTIVELY ADVE ADVERTISING THROUGH TBSA, OUR WEB PAGE, HEART BEAT AND SAPS, OUR CHIEF FINANCIAL OFFICER, MYSELF, OUR INTERIM ASSISTANT DIRECTOR OF BENEFITS. NATALIE BOLL LOCK. MELANIE KEYTON.
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AND MANNY ES PINO, OUR BENEFITS ADMINISTRATOR. THE CRITERIA FOR THIS RFP WILL BE THE EXPERIENCE, BACKGROUND, QUALIFICATIONS 35 POINTS.PROPOSED PLAN. 35 POINTS. PRICING 15 POINTS.
VETERAN OWNED SMALL BUSINESS 5. THE BUSINESS REQUIREMENTS ARE AUDITED FINANCIAL STATEMENTS, WHICH ARE REQUIRED AND.
THE SBEDA PROGRAM HAS BEEN WAIVED. OUR TIMELINE, AGAIN, WE HOPE TO RELEASE BY THE END OF THIS MONTH HOLDING THE P PRESUBMITTAL CONFERENCE AT THE BEGINNING OF FEBRUARY WITH THE DUE DATE FOR P PROPPROPOSALS BEING MARCH 17.
WE HOPE TO HAVE OUR EV EVALUATION COMPLETE IN APRIL AND HAVE A CONTRACT NEGOTIATED BY JUNE. AGAIN, TO BRING IT TO CITY COUNCIL CONSIDERATION IN SEPTEMBER FOR A START DATE OF JANUARY 1, 2026. THAT'S THE END OF MY PROPOSAL, BUT IF THERE ARE ANY QUESTIONS, PLEASE LET ME KNOW.
>> VIAGRAN: IS THERE ANY QUESTIONS FOR THE COMMITTEE REGARDING THIS? NO QUESTIONS FOR ME. I JUST WANT TOE MAKE TO MAKE SUSURE, AGAIN, WE KEEP THE TIMELINE TO MAKE SURE WE HIT THIS AT THE END OF THE YEAR TO WE
HAVE THIS AVAILABLE. THANK YOU. >> THANK YOU.
>> VIAGRAN: ALL RIGHT. THIS ITEM WAS FOR BR BRIEFING ONLY.
SO WE HAVE ONE FINAL INTERNAL AUDIT REPORT FOR INDIVIDUAL CONSIDERATION. AND I DO WANT TO REMIND THAT THIS IS STRICTLY TALKING ABOUT -- WELL, I'LL HAVE MADAM CHAIR -- I MEAN, I'LL HAVE THE CLERK -- MADAM CLERK, PLEASE READ THE CAPTION FOR ITEM 6.
>> CLERK: ITEM 6 IS ACCEPTANCE OF THE OFFICE OF THE CITY AUDITOR REPORT AU23-027, AUDIT
OF NHSD HOME IMPROVEMENT PRO PROGRAMS. >> GOOD MORNING.
>> VIAGRAN: THE FLOOR IS YOURS. >> HELLO, I'M ABIGAIL. I WAS THE AUDIT MANAGER FOR THE PROJECT AND I'LL BE PRESENTING THE RESULTS OVER THE AUDIT OF THE NEIGHBORHOOD AND HOUSING SERVICES DEPARTMENT HOME IMP IMPROVEMENT PROGRAMS. OVERALL, OUR AUDIT OBJECTIVE WAS TO DETERMINE IF THE HOME IMPROVEMENT PROGRAMS WERE MANAGED IN ACCORDANCE WITH TRUSTEE PROJECTS AND PROCEDURES, INCLUDED 3 PROGRAMS WHICH WERE MAJOR REPAIR, MINOR REPAIR AND ROOF PROGRAMS. WE LOOKED AT PROJECTS MANAGED BY NHSD AS WELL AS THOSE THAT WERE MANAGED BY A THIRD PARTY CONTRACTOR, OVERALL OUR CONCLUSION WAS THAT THE HOME IMPROVE PRESIDENT PROGRAMS WERE NOT MANAGED WITH NHSD'S POLICIES AND PROCEDURES. OUR FIRST OVER PROJECT MANAGEMENT REGARDING THE SAMPLE WE REVIEWED, 29 PROJECTS WHICH ENCO ENCOMPASSED THOSE THREE PROJECTS I MENTIONED. 270-6929 WE REVIEWED HAD ONE OR MORE INSTANCES OF NON-COMPLIANCE, AND THESE PROVIDE SPECIFIC DETAILS.
FOR THE FIRST ITEM PROJECTS WERE APPROVED DESPITE MISSING DOCUMENTATION. PROOF OF HOMEOWNERS OF THE INSURANCE, SECONDLY, DENIAL LETTERS TO PARTICIPANTS WERE CREATED DURING THE AU AUDIT. WE ALSO DETERMINED THAT PROJECTS PROCEEDED PRIOR TO DOCUMENT COMPLETION OR ADEQUATE APPROVAL. IT WOULD HAVE BEEN R RESTRICTIVE COVENANTS NOT BEING FILED BEFORE THE PROJECT PROCEEDED TO THE CONSTRUCTION PHASE, AND THIS IS A SIGNIFICANT REQUIREMENT AS IT PROTECTS THE CI CITY'S INVESTMENT IN THE PROPERTIES.
NEXT, CONTRACTORS DID NOT HAVE ADEQUATE INSURANCE COVERAGE, THIS APPLIED TO THOSE CONTRACTORS THAT WERE PERFORMING THE CONSTRUCTION ON THE PARTICIPANT'S HOMES. WE ALSO DETERMINED THAT APPROVAL WAS NOT OBT OBTAINED BEFORE CHANGE ORDERS WERE EXECUTED, AND IN LINE WITH THAT, AMENDED RESTRICTIVE COVENANTS WERE NOT FILED WITH PROJECTS WITH CHANGE ORDERS, AND PAYMENTS WERE NOT MADE IN COMPLIANCE WITH POLICIES. TO PROVIDE AN EXAMPLE HERE, WE IDENTIFIED ONE INSTANCE WITHIN A SAMPLE WHERE A PROJECT WAS PAID IN FULL BEFORE WORK COMMENCED ON THE HOME, AS OPPOSED TO NHSD REQUIREMENTS THAT PAYMENTS BE PLACED ON COMPLETION.
WHAT WE'RE EMPHASIZING IS NEED FOR CONTROLS, PARTICULARLY AS PROJECTS PROCEED FROM ONE PHASE TO THE NEXT THIS NEXT SLIDE CONTAINS OUR THREE FINAL FINDINGS, THE FIRST OF WHICH WAS OVER PARTICIPANT FEEDBACK, WE DETERMINED THAT SURVEYS WERE NOT AVAILABLE FOR REVIEW POST PROJECT COMPLETION AS REQUIRED BY NHSD'S POLICIES.
ADDITIONALLY, PERFORMANCE MEASURES WERE NOT CLEARLY DEFINED OR ADEQUATELY SUPPORTED. THIS IS SPECIFIC TO THE PERFORMANCE MEASURES REP
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REPORTED IN THE BUDGET BOOK. AND LASTLY, USER ACCESS TO PARTICIPANT DATA WAS EXC EXCESSIVE. NHSD MANAGEMENT HAS AGREED WITH RECOMMENDATIONS AND DEVELOPED CORRECTIVE ACTION PLANS TO ADDRESS THESE THAT WE'VE IDENTIFIED, AND THEY'VE BEEN MARKED AS COMPLETED BY NHSD. THAT CONCLUDES MY PRESENTATION, BUT BOTH MYSELF AND NHSD MANAGEMENT ARE AVAILABLE TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE.>> VIAGRAN: THANK YOU, ABIGAIL. AND I BELIEVE WE HAVE VERONICA HERE AND IAN HERE TO ANSWER QUES QUESTIONS. I WANT TO REALLY STAY FOCUSED ON KIND OF THE INTERNAL AUDITS AND THE OBJECTIVES.
THANK YOU FOR THE RESULTS, AND WE'LL START WITH COMMITTEE MEMBER
CONVERSATION. >> CHAIR, MY I ASK VERONICA GARCIA THE DIRECTOR OF NHSD TO -- SHE'S GOT A BRIEF PRESENTATION THAT'LL
RESPOND TO THE CITY MANAGEMENT RESPONSE. >> VIAGRAN: YES.
SORRY. I HEARD IT. I ASSUMED EVERYBODY ELSE HAD.
BUT VERONICA. GO AHEAD AND GIVE YOUR PRESENTATION.
THANK YOU. >> THANK YOU, CHAIR, COMMITTEE MEMBERS, AND THANK YOU TO BUDDY, ABIGAIL AND THE AUDIT TEAM FOR THE THOROUGH REVIEW OF PROGRAMS. THE AUDIT TEAM SPENT A YEAR WITH OUR TEAM TO SEE OUR DIFFERENT PROGRAMS, DIFFERENT FU FUNDING SOURCES AND SEE FIRSTHAND HOW PROGRAMS ARE HELPING FAMILIES. THEY'VE BEEN IN PLACE FOR WELL OVER A DECADE, AND IN 2023, WE WERE FORTUNATE ENOUGH TO RECEIVE HOUSING FUNDS TO HELP US REACH EVEN MORE FAMILIES IN A SINGLE YEAR. THE HOME REHAB PROGRAMS HAVE GROWN SIGNIFICANTLY WHICH PROVIDED AN ADDITIONAL $45 MILLION STARTING IN FISCAL YEAR 2023 WHICH IS WHEN THE AUDIT TEAM STARTED REVIEWING FILES.
IN ADDITION TO PROVIDING MORE PROJECTS IN A FISCAL YEAR, WE'RE PROVIDING MORE SERVICES TO HELP HOMEOWNERS BETTER QUALIFY FOR THE PROGRAM, OFFER FLEXIBILITY, SO THOSE WITH LIMITED RESOURCES COULD GO THROUGH OUR QUALIFICATION PROCESS AND WHEN THEY HAVE TO MEET OUR ELIGIBILITY CRITERIA, FULL TIME SOCIAL WORKERS ON THE TEAM WHO HELP CONNECT FAMILIES WITH SERVICES BEYOND HOME IMPROVEMENT.
FOOD ASSISTANCE, HELP WITH UTILITIES AND HELP WITH THE ROW LOCATION PROCESS FLINCH WHEN THE REPAIRS ARE OFFERING. AND 4 HOUR HOME MAINTENANCE WORKSHOP SO FAMILIES UNDERSTAND AND LEARN FIRST HAND HOW TO MAINTAIN HOME IMP IMPROVEMENTS, WHICH P PRESERVES HOME AND CITY INVESTMENT IN THEIR HOME FOR YEARS TO COME. WE UTILIZE SEVERAL FUNDING SOURCES FOR THESE PROGRAMS, INCLUDING FEDERAL FUNDS, GENERA FUNDS AND HOUSING BOND FUNDS.
THE AUDIT DID IDENTIFY IS ISSUES WITH OUR EXISTING PROCESSES AND WE'VE WORKED TO STRENGTHEN OUR POLICIES AND CONTROLS TO REFLECT THE SCALE OF OUR PROGRAMS THAT WE'RE OFFERING TODAY, AND AS ABIGAIL MENTIONED. ALL OF OUR CORRECTIVE ACT ACTIONS WE'VE IDENTIFIED HAVE BEEN COMPLETED. THE AUDIT TEAM IDENTIFIED AREAS OF CONCERN WITH PROGRAM MANAGEMENT AND OV OVERSIGHT AND TAKEN VERY QUICK ACTION TO IMPROVE OUR INTERNAL PROCESSES PRETTY IMMEDIATELY.
WE HAVE REORGANIZED OUR STAFF TO PROVIDE ADDITIONAL ENHANCED OVERSIGHT, PARTICULARLY AS THE PROJECTS MOVE FROM ONE PHASE TO ANOTHER, WE'VE ALREADY U UPDATED OUR POLICIES AND PROCEDURES TO CLARIFY HOMEOWNER ELIGIBILITY REQUIREMENTS AND WHEN THEY MUST MEET THOSE REQUIR REQUIREMENTS.
WE'VE WORKED CLOSELY WITH RISK MANAGEMENT TO UPDATE OUR CONTRACTOR INSURANCE REQUIREMENTS, NOTIFIED THEM OF CHANGES IN THE COVERAGE REQUIREMENT AND WORKING TO GET UPDATED CERTIFICATES AND WORKED WITH OUR ATTORNEY'S OFFICE TO TAKE A CLOSE LOOK AT HOW TO MANAGE CHANGE ORDERS AND STREAMLINE THE PROCESS OF WHEN WE HAVE TO FILE MULTIPLE AMENDMENTS AND RESTRICTIVE COVENANTS AND THAT'S BEEN ADJUSTED AND STREAMLINES AS MUCH AS POSSIBLE. WE'VE ALSO WORKED CLOSELY WITH OUR FISCAL TEAM TO ENHANCE FISCAL PROCESSES AND DOCUMENTATION REVIEWS HE HELPING ENSURE RESTRICTIVE COVENANTS, DOCUMENTS FILED, ALL OF THOSE DONE BEFORE PAYMENTS ARE MADE TO CONTRACTORS. AND FINALLY AND IMPORTANTLY, WE'VE RETRAINED ALL STAFF ON UPDATED POLICIES AND PROCEDURES.
REGARDING CUSTOMER FEEDBACK, WE HEARD THE AUDIT TEAM, AND THEY WERE HELPING TO LOOK AT REALLY WHAT'S THE IMPORTANCE OF THE CUSTOMER FEEDBACK SURVEY, SO WE PROVIDED MORE WAY FOR CUSTOMERS TO PROVIDE US THAT FEEDBACK. WE HAVE AT THE FINAL WALK-THROUGH WHEN GOING THROUGH HOME REPAIRS AND LOOKING AT THEM, PROVIDE THEM OF A HARD COPY OF CUSTOMER SURVEY, ENGLISH AND SPANISH TO DO WRITTEN COMMENTS AND OF COURSE CONTINUE TO MAKE PHONE CALLS AND ACCEPT VERBAL FEEDBACK AS WELL.
REGARDING PERFORMANCE MEASURES, WE HAVE CLEARLY AND MAKING SURE THAT WE REALLY CLARIFY THAT THE PROJECT PERFORMANCE MEASURES IN ANY GIVEN YEAR ARE TIED TO THE FUNDING WE GET THAT YEAR.
SO THESE ARE MANY OF THE MAJOR IMPROVEMENT PROGRAMS, THEY DO TAKE MORE THAN A
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YEAR TO GO THROUGH THE ELIGIBILITY PROCESS, THE SCOPE, CONSTRUCTION, AND COMPLETION, SO IT'S NOT U UNCOMMON TO HAVE PROJECTS GO FROM ONE FISCAL YEAR TO ANOTHER, SO WE'RE SURE TO CLARIFY AND MAKE IT CLEAR THAT PROJECTS COULD BE IN PRECONSTRUCTION, UNDER CONSTRUCTION OR COMPLETED DURING THAT TIME.AND THEN FINALLY WORKED WITH ITSD TO REVIEW ACCESS TO OUR SHAREPOINT FILES, WE WANT TO ENSURE THAT CUSTOMER DATA IS SECURE AND ONLY THOSE THAT NEED ACCESS HAVE IT SO WE'VE WORKED TO MODIFY ACCESS TO SHAREPOINT FILES AND WORKING QUARTERLY TO REVIEW ACCESS AND MODIFICATION FOR USER ACCESS IS ONGOING. SO, AGAIN, I WANT TO THANK THE AUDIT TEAM FOR HELPING US IDENTIFY AREAS WHERE WE COULD IMPROVE OUR PROCESS, WE DO HAVE A LOT OF RESPONSIBILITY, WE WAN TO MAKE SURE THAT WE GET THESE PROGRAMS AND WRITTEN POLICIES AND PROCEDURES CORRECT. NHSD IS COMMITTED TO ENS ENSURING OUR PROGRAMS ARE MANAGED EFFECTIVELY BUT HOMEOWNERS ARE ASSISTED PROMPTLY AND COURTEOUSLY AND PROVIDED WITH THE SUPPORT THEY NEED TO MAINTAIN THEIR HOME.
ALL IDENTIFIED IN THE CORRECTIVE ACTION PLAN HAVE BEEN COMPLETED AND WE INVITE THE AUDIT TEAM TO COME AND DO A FOLLOW UP AUDIT IN FISCAL YEAR 2027 BEFORE THE NEXT BOND IS ISSUED SO WE CAN ENSURE THAT WE'RE CONTINUING TO HAVE EFFECTIVE PROCEDURES IN PLACE. HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
>> I WANT TO ADD ON TOP OF THIS THAT THE CITY OF SAN ANTONIO, CITY MANAGER OFF OFFICE, DEPARTMENT OF FINANCE, AND THE CITY AUDITOR OFFICE, WE DID WORK TOGETHER. ONCE WE GOT THIS INITIAL REPORT, THE NHSD, THEY REVIEWED EVERY FILE WE HAD, EVEN IF IT HAD NOT BEEN MONITORED.
OVER 500 FILES AND OUR STAFF REVIEWED EACH FILE AND THEN FINANCE DEPARTMENT STAFF AND AUDITOR STAFF, THEY WOULD LOOK AT THE FILE FOR COMPLETION AND IF IT WASN'T COMPLETED AND THEY FOUND ISSUES, THEY WOULD SEND IT BACK.
SO WE'VE GONE THROUGH ALL OF OUR FILES AND CAN CONFIRM ALL OF THE FILES ARE COMPLETE NOW. AND I WANT TO GIVE EXAMPLES OF SOME OF THE PROCESSES.
YOU'LL SEE THE SURVEY ISSUE. WE DON'T HAVE SURVEYS ON FILE.
WHAT OUR STAFF WAS DOING WAS THEY WERE DOING A VERBAL SURVEY OVER THE PHONE.
SO WE'D CALL THE INDIVIDUAL, ASK THEM QUESTIONS, AND SAY SURVEY COMPLETE.
WHAT THE AUDITOR'S OFFICE IS RECOMMENDING WE HAVE A PAPER SURVEY ON FILE THAT THEY COMPLETE AND SUBMIT THEMSELVES. SO WE WERE DOING A SURVEY, BUT THE SURVEY WE REALLY NEEDED WAS ONE THAT WAS TU TURNED IN PHYSICALLY AND SIGNED BY THEM. AND SO THAT'S WHY IT'S IMPORTANT JUST TO NOTE THIS IS, YOU KNOW, THE FIRST TIME WE'VE HAD SO MUCH MONEY. WE'RE DOING A LOT OF WORK, AND WE'RE TRYING TO MEET THESE PROCESSES, BUT SOME OF THE WAY WE'RE GETTING THOSE CHECKLISTS DONE MAY NOT BE THE BEST WAY, AND SO THAT'S WHY THE AUDIT WAS REALLY HELPFUL TO US BECAUSE IT ALSO IDENTIFIED THINGS LIKE INSURANCE THAT WE EITHER DON'T NEED AND NO ONE COULD EVER GET ON THEIR HOUSE, OR INSURANCE MILESTONES WHERE MAYBE THEY DON'T NEED HOMEOWNER INSURANCE RIGHT NOW WHEN THEY'RE FULFI FULFILLING -- SUBMITTING THE APPLICATION. THEY JUST NEED IT BEFORE WE START WORK, AND SO THOSE ARE SOME OF THE THINGS THAT WAS SWITCHED.
SO HAPPY TO ANSWER ANY QUESTION MYSELF. BEN, TROY, I KNOW BUDDY'S TEAM WAS INVOLVED AS WELL, AND ANY NHS TEAM CAN ANSWER ANY QUESTIONS.
THANK YOU. >> THANK YOU, LAURIE. I THINK IT WAS SONG WRITER CHRISTOPHER WALLACE THAT SAID MORE MONEY, MORE PROBLEMS, AND THAT HAPPENS WITH CITY DEPARTMENTS TOO. AND, AGAIN, THESE PROGRAMS HAD BEEN GOING ON FOR YEARS BUT WITH A LIMITED AMOUNT OF MONEY. AND BUDGET, AND WHAT YOU COULD DO WITH YOUR STAFFING ISSUES, AND THEN WE PASSED THE BOND, WHICH WAS THE RIGHT THING FOR THE CITY TO DO AND WE SEE IT COMES WITH PROBLEMS. AND I WANTED TO THANK THE AUDIT COMMITTEE FOR DOING THE DUE DILIGENCE DID HE TOE COME UP WITH THIS REPORT. WHAT I FIND IS AN OPPORTUNITY FOR HERE, FOR US IS A COMMITTEE TO KIND OF LOOK AT WHAT DO WE DO WHEN WE GET SOMETHING LIKE THIS? AND WE KNOW IT'S ROOTED IN THE FACT THAT THEY WERE GIVEN A LOT MORE MONEY AND NECESSARILY DIDN'T HAVE THE INTERNAL -- THE INTERNAL IN PLACE, AND THE POLICIES IN PLACE WERE -- I -- WERE JUST NOT WHAT WE NEEDED. SO WE'RE LOOKING AT THAT TODAY. I THINK WE CAN DISCUSS THAT AND DISCUSS IT DEFINITELY THE OBJECTIVES, THE AUDIT OBJECTIVES AND THE OVERALL CONCLUSION TODAY, BUT ALSO, REALLY, TAKE BACK COMMITTEE DO WE WANT TO HAVE A SUBCOMMITTEE TO TALK ABOUT WHAT ARE NEXT STEPS FOR US WHEN WE GET THIS FACING THE RESPONSE HERE, THANK YOU,
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VERONICA FOR YOUR RESPONSE AND WORKING ON THAT. WHAT DO WE DO IF WE DON'T -- IF WE UNDERSTAND THAT CITY STAFF SAYS WE HAVE A VERY SIGNIFICANT PROBLEM AND WE NEED TO MOVE FORWARD, WHERE CAN WE AS AN AUDIT COMMITTEE CAN HELP.SO I LOOK FORWARD TO HEARING YOUR INPUT. I THINK THE ONE THING IS THE FEEDBACK. FEEDBACK. AND DO WE NEED TO WORK WITH CNE AND THE OTHER GROUPS THAT WE ASK GROUPS TO DO SURVEYS EVERY DAY ONLINE AND THEY COLLECT THAT. HOW DO WE INTEGRATE THAT INTO THIS PROGRAM, CAN WE CUSTOMIZE THAT MORE FOR DISTRICTS OR FOR PROJECTS. SO THERE'S A LOT OF OPPORTUNITY HERE, A LOT OF THINGS TO UNPACK. I THINK -- I APPLAUD THE EFFORTS, BUT SOME OF THIS IS GOING TO TAKE COMMITTEE I INPUT, AND THEN SOME OF THIS IS GOING TO TAKE MAYBE EL ELECTED OFFICIALS LOOKING AT SORT OF POLICY MOVING FORWARD ON WHEN WE PASS A BOND AND INCREASE A DEPARTMENT'S BUDGET SO SIGNIFICANTLY AS WE DID, YOU KNOW, BACK IN 2022. SO WITH THAT, WE'LL BEGIN
DISCUSSION, AND I'LL START WITH COUNCILMEMBER WHYTE. >> WHYTE: THANKS, CHAIR.
ABIGAIL, GREAT WORK ON THIS. THIS IS THE KIND OF STUFF THAT WE'VE GOT TO BE DOING TO CHECK OURSELVES HERE AT THE CITY, AND SO I REALLY APPLAUD YOUR GROUP FOR DOING WHAT THEY DID HERE AND FOR ALL OF THIS WO WORK. LOOK, I'LL BE REALLY HONEST, I MEAN, THIS IS THE KIND OF STUFF THAT I HEAR ABOUT FROM MY RESIDENTS ALL THE TIME, AND IT' ABOUT YOU GUYS ARE SPENDING ALL OF THIS MONEY DOWN AT THE CITY, YOU'VE GOT ALL OF THESE PROGRAM GOING ON DOWN THERE, DO YOU REALLY KNOW THAT THE MONEY IS BEING USED EFFECTIVELY, DO YOU REALLY KNOW THAT THERE'S NOT WASTE AND ABUSE GOING ON. I HEAR IT EVERY MONTH AT OUR DISTRICT 10 MEETINGS. AND SO WHEN I OPENED THIS AUDIT REPORT AND I LOOKED AT THE EXECUTIVE SUMMARY AND RIGHT IN THE BEGINNING IT SAYS NHSD'S HOME IMPROVEMENT PROGRAMS ARE NOT MANAGED EFFECTIVELY, EFFICIENTLY OR IN COMPLIANCE WITH ESTABLISHED GUIDELINES, I MEAN, THIS IS THE KIND OF THING, AGAIN, THAT I WORRY ABOUT AND I HEAR ABOUT ALL THE TIME, AND YOU MOVE DOWN THE FIRST PAGE OF THE EXECUTIVE SUMMARY, AND IT SAYS IN EFFECT, THIS HAS CREATED AN ENVIRONMENT VULNERABLE TO FRAUD, WASTE, AND ABUSE. AND FRAUD, WASTE, AND ABUSE OF TAXPAYER DOLLARS SIMPLY CANNOT BE -- CANNOT BE TOLERATED HERE WITH OUR CITY GOVERNMENT, AND IT LOOKS LIKE THIS AUDIT WAS TWO YEARS, OCTOBER '22 THROUGH AUGUST OF 2024. AND IT LOOKS LIKE, I GUESS, 2023, OVER $7 MILLION IN CCITY OF SAN ANTONIO GENERAL FUNDS WERE USED FOR THIS PROGRAM.
I WANT TO HIT A COUPLE MORE THINGS IN HERE THAT REALLY CONCERNED ME IN TERMS OF WHAT G.
THEY LOOKED AT 29 PROJECTS, AND 27 OF THE 29 PROJECTS WERE NOT IN COMPLIANCE WITH NHSD'S POLICIES. SO NOT ONE, NOT 2, 93% OF THE PROJECTS WERE NOT IN COMPLIANCE WITH THE POLI POLICIES, AND THEN WE LOOKED FURTHER IN THE REPORT, THIS CHANGEDCHANGE ORDER ISSUE CAUGH ATTENTION AS WELL, LOOKING AT CHANGE ORDER AND DETERMINED THAT 9 OUT OF THE 14 PROJECTS WITH -- HAD CHANGE ORDERS, AND IN A LOT OF THEM, PRIOR APPROVAL FOR THE CHANGE ORDERS -- FIVE PROJECTS HAD A CHANGE ORDER SIGNED BY THE CONTRACTOR AND HOMEOWNER PRIOR TO THE APPROVAL BY NHSD ADMINISTRATION. PRIOR APPROVAL FOR THESE CHANGE ORDERS IS SIGNIFICANT BECAUSE THE CHANGE ORDER CAUSED THE PROJECT TO EXCEED THE PROGRAM LIMITS.
IN OTHER WORDS, WE WERE SPENDING MORE ON THE PROJECT THAN HAD BEEN BUDGETED, IS THAT FAIR? OR WAS ALLOWED FOR THE PARTICULAR PROJECT?
>> SO LET ME GIVE YOU SOME CONTEXT, WHEN WE DO A HOUSE, WE DO -- WE GET AN ESTIMATE, AND WE DO THE CONTRACT BASED ON THAT ESTIMATE. SO LET'S SAY IT SAYS A HOUSE IS GOING TO BE DONE FOR 132,000. SO YOU GET INTO A HOUSE, THESE HOMES ARE ALL PRE PRE1950S, THEY'RE OLD. IT COMES BACK AND SAYS, OK
[00:30:02]
OKAY, IT'S GOING TO BE AN ADDITIONAL $8,000. SO THAT'S A CHANGE ORDER.SO WHAT HAPPENS IS YOU'LL SIGN THE CHANGE ORDER, BUT THEN THERE'S ALSO AN ISSUE WHERE WE HAVE TO SIGN THE -- THERE'S A LIEN ON THE HOUSE AT THE COURTHOUSE, WE HAVE TO GO AND AMEND THE CONTRACT AND THEN REDO THAT LIEN, AND SO IT WAS A TIMING ISSUE ABOUT HOW IT WAS BEING SI SIGNED, YOU HAD THE CITY'S ATTORNEY OFFICE WHO HAD TO DO THE LIEN AND NHSD WHO HAD TO DO THE CHANGE ORDER, AND SO, YES, THE DIRECTOR DID NOT SIGN OFF ON THE CHANGE ORDERS, BUT THE MORE -- THE BIGGER ISSUE IS THE LIEN AND THE PROCESS. WHAT WE'VE DONE NOW IS TO AVOID THAT, WE'VE PUT AN UP TO AMOUNT, WE'RE GOING TO PUT AN AMOUNT OF UP TO ON OUR CONTRACTS SO YOU DON'T HAVE TO GO BACK AND GET THE LIEN ADJUSTED EVERY TIME BECAUSE WE'RE TALKING ABOUT SMALL AMOUNT, NOT A LOT OF RISK THERE AND THEN WHEN THE CHANGE ORDER IS NEEDED, IT COULD BE SIGNED IMMEDIATELY, AND IT WILL NOT BE EXECUTED BY ANY PARTY UNTIL VERONICA GARCIA SIGNS IT. SO, YES, I WANT TO ACKNOWLEDGE WHAT YOU'RE READING IS CORRECT. WE WERE AUTHORIZING -- YOU KNOW, A CHANGE ORDER IS TO APPROVE A HIGHER AMOUNT, BUT THAT'S VERY COMMON IF YOU'VE DONE YOUR OWN HOUSE, IT'S GOING TO COME THROUGH, JUST THE DIRECTOR WASN'T SIGNING IT, WE SWITCHED THAT IN THE PROCESS AND THEN SWITCHED SOMETHING IN THE PROCESS ABOUT THE LEGAL ISSUE WITH THE LIEN VERSUS THE CONTRACT BETWEEN NHSD AND THE HOMEOWNER.
>> WHYTE: IS MY TIME UP? >> VIAGRAN: YES, LET ME SEE I IF -- DO ANY OF MY COMMUNITY MEMBERS -- WE'LL COME BACK TO YOU. MEMBER T TREVINO.
>> I HAVE TWO QUESTIONS. ONE WAS WHEN WE TALKED ABOUT CONTRACTOR THAT WAS INVOLVED, WHEN YOU MENTIONED SOME OF THE TRAINING THAT YOU HAVE AND HAVE COMPLETED, WERE THEY INCLUDED IN SOME OF THAT TRAINING, I'M ASSUMING THE ANSWER WAS YES, BUT I WANT TO MAKE SURE.
>> SURE WE DON'T DO EXACT TRAINING WITH CONTRACTORS BUT WE'VE HAD MEETINGS TO TALK ABOUT UPDATED POLICIES AND WHAT INFORMATION WE NEED AND SENT THEM WRITTEN DOCUMENTATION TO MAKE THEM AWARE OF U UPDATED INSURANCE REQUIREMENTS FOR CONTRACTORS AS WELL.
>> OKAY. AND THEN YOU ALSO MENTIONED THERE'LL BE A FOLLOW UP AUDIT IN TWO YEARS, SO I THINK MY QUESTION IS TO OUR AUDITOR IN THE ROOM, IS THAT THE STANDARD WHEN THERE'S ISSUES LIKE TH THIS, WHEN THERE'S AN AUDIT THAT HAS QUITE A FEW FINDINGS, IS THE STANDARD THAT WE'LL WAIT TWO YEARS OR ARE THERE CERTAIN TIME FRAMES
WE'LL ALLOW TO GO BACK AND REVIEW. >> IT'S NOT TWO YEARS.
I THINK THERE WAS A M MISCOMMUNICATION, IT'S '26, FISCAL YEAR, WE'LL GO BACK AND REAUDIT. THE PROCESS IS WE TYPICALLY FOLLOW UP.
HOWEVER, SINCE THERE WAS A LOT OF CLEANUP IN THIS PROCESS, THEY REVIEWED PRIOR FILES IF WE WERE TO AUDIT RIGHT NOW -- AND IT'S GREAT.
THAT WAS NEEDED. IT WAS NECESSARY. THEY DID A GREAT JOB GOING BACK REVIEWING. TOUCHING EVERY FILE. IF WE WERE TO GO BACK AND TAKE A SAMPLE, EVERYTHING WOULD COME OUT ACCEPTABLE RIGHT N NOW, BUT WE'RE ALSO WA WAITING FOR WHEN 2026 -- EARLY 2026, PROBABLY THE VERY FIRST COUPLE MONTHS OF FISCAL YEAR 2026, TAKING A BRAND NEW SAMPLE, EXACTLY THE SAME WAY, HOWEVER, WITH NEW N PROJECTS OR AT LEAST PROJECTS THAT WE DIDN'T TOUCH AND TAKE A GOOD LOOK TO SEE IF THE IMPLEMENTED PROCESSES ARE WORKING THE WAY THEY'RE INTENDED.
I WANT TO PUT SOME CONTEXT BEHIND OUR SAMPLE.
WE TRIED TO, WHERE WE CAN, TAKE SAMPLES WHERE THE ENTIRE PROJECT FROM INCEPTION TO COMPLETION, AND THAT'S WHAT WE DID FOR THE MOST PART, THERE WERE A FEW FROM THE CONTRACTOR THAT DIDN'T REACH THE CLOSEOUT PERIOD BUT WE TOOK A SAMPLE TO TRY TO LOOK AT AS FAR AS MERSED COULD HAVE TAKEN IT AT A CERTAIN POINT IN TIME. SO WE'LL TAKE THE SAME APPROACH IN 2026, GO BACK WITH FOLLOW UP PROCESS BUT LOOK AT INITIAL EXISTENCE, SO ARE THE POLICIES UPD UPDATED, DO THEY HAVE A NEW POLICY AND PROCEDURE FOR FEEDBACK, ALL THE THINGS THAT VERONICA MENTIONED IN HER SLIDE, WE'LL DO THAT PRETTY SOON, LIKE, IMMEDIATELY, BUT WE'LL REAUDIT, ACTUALLY AUDIT SAMPLE PROJECTS AGAIN IN FISCAL
YEAR 2026. HOPEFULLY THAT . >> THANK YOU, THANK YOU
VERY MUCH. >> OKAY. >> THOSE ARE ALL OF MY
QUESTIONS. THANK YOU. >> MEMBER HARRIS.
HARRIS.OKAY. BACK TO COUNCILMEMBER WHYTE.
>> WHYTE: THANKS, CHAIR. AND I WANT TO BE CLEAR. I APPLAUD WHAT WE'RE T TRYING TO DO HERE THROUGH THIS PROGRAM. IT'S IMPORTANT WORK,
[00:35:02]
GREAT WORK, AND I APPLAUD IT, BUT OFTENTIMES WHAT HAPPENS HERE IN THIS CITY, WHAT I'VE NOTICED, YOU KNOW, WE THROW MONEY AT A LOT OF THESE THINGS, HAVE ALL OF THESE VARIOUS PROGRAMS, AND WE'RE LO LOOKING TO DO GOOD, BUT WE'RE NOT ALWAYS THE SMARTEST AND THE MOST STRATEGIC IN HOW WE DO IT, AND AT THE END OF THIS REPORT, THE LAST THING I'LL CITE FROM HERE, IT SAYS THERE'S A LACK OF CLEARLY DEFINED PERFORMANCE MEASURES RELATED TO WHAT WE'RE DOING HERE WITH THE PROGRAM, INADEQUATE SPORTING DOCUMENTATION HAS ENDED UP IN MISLEADING RESULTS. SO WE'RE TALKING ABOUT THE NEED TO HAVE PERFORMANCE -- ADEQUATE PERFORMANCE METRICS WITH ALL OF OUR PROGRAMS, ANDSO . >> I WANT TO SAY SOMETHING, THIS IS SOMETHING WE DISAGREED WITH FOR THE CITY AUDITOR BUT WE'RE GOING TO FIX SOMETHING TO SOMETHING THAT WORKS WITH BOTH OF.
IN OUR METRICS IT SPEAKS TO HOW DID THE MONEY HELP.
HOW MANY HOMES DID THAT MONEY HELP. SO IF YOU GAVE US $1 MILLION, OUR METRIC WILL READ -- YOU KNOW, HOW MANY HOMES DID YOU HELP WITH THAT $1 MILLION. SO WE'LL HAVE -- LET'S SAY WE HELPED 20 HOMES. WELL, OF THOSE 20 HOMES, 15 MAY BE COMPLETE.
THERE MAY BE 5 THAT HAVEN'T EVEN STARTED, BUT WE'RE -- YOU KNOW, WE'RE STILL DOING SOME WORK BEFORE WE START. WHAT THE AUDITOR IS S S SAYING IS THAT WE SHOULD ONLY SAY THAT WE'VE DONE INTO15 HOMES.
BUT NO. WE'RE TRYING TO BE ABLE TO CAPTURE HOW MUCH MONEY -- HOW MANY HOMES THAT $1 MILLION THAT WAS ALLOCATED IS GOING TO HELP. SO MOVING FORWARD, WE'LL DO BOTH.
SO WE'LL BE ABLE TO SHARE THAT, YOU KNOW, THIS IS HOW MUCH MONEY WAS ALLOCATED. OF THIS AMOUNT, 20 HOMES ARE COMPLETE, AND THERE'S ANOTHER 20 HOMES SOMEWHERE IN THE PROCESS THAT WILL BE COMPLETE NEXT FISCAL YEAR. AND SO IT HAD TO DO WITH -- YOU THE BUDGET DOCUMENT, A LOT OF OUR BUDGET MEASURES ARE HOW DID THAT -- WHAT DID YOU BUY WITH THAT MONEY, AND WE BOUGHT 20 REHAB HOMES BUT NONE -- ALL OF THEM WEREN'T COMPLETE BECAUSE THEY WERE EITHER ABOUT TO START, DURING CONSTRUCTION, AND SO WE NEED TO FOOTNOTE THAT AND MAKE SURE IT'S COMPLETE. BUT THAT WAS A DISAGREEMENT WITH US. I STILL DISAGREE WITH IT, BUT, YOU KNOW, I'M -- BUDDY, THAT'S WHAT HE SAYS, AND SO WE'RE GOING TO MAKE SURE WE WORK -- WE WORKED WITH THE BUDGET OFFICE, WITH TR TROY, EVERYONE, AND THAT'S HOW WE'LL REPORT
THEM. >> WHYTE: OKAY. DO WE KNOW ANY ESTIMATED FINANCIAL IMPACT OR COST TO THE CITY THAT'S BEEN INCURRED BASED UPON
THESE ISSUES THAT WERE FOUND? >> ARE YOU ASKING HOW
MUCH. >> WHYTE: I'M ASKING, IF ANY. >> YEAH.
SO TO CLARIFY, WE DID NOT HAVE QUESTION COS COST; RIGHT? THE WORK WAS PERFORMED, WE WERE EMPHASIZING NEED FOR CONTROL, SO WE DIDN'T
IDENTIFY ANY QUESTIONABLE COST. >> WHYTE: OKAY.
MY TIME IS UP AGAIN HUH. >> DO YOU WANT TO ASK A FOLLOW-UP QUESTION.
GO AHEAD AND SHARE. >> WHYTE: WELL, MAYBE A LAST QUESTION HERE IS SYSTEMIC ISSUE THAT WE THINK CONTRIBUTED TO THESE CHALLENGES. I MEAN, ARE WHERE HE TAKING ON TOO MUCH? DO WE NEED MORE STAFF? WHAT -- BY THE WAY, VERONICA, I APPRECIATE ALL THE STEPS YOU'VE TAKEN TO ADDRESS SOME OF THESE ISSUES. I JUST WANT TO MAKE SURE -- AND WE'RE GOING TO DO A FOLLOW UP AUDIT. I JUST WANT TO MAKE SURE THAT, AGAIN, OUR R RESOUSOURCES ARE BEING USED EFFICIENTLY AND YOU GUYS HAVE WHAT YOU NEED TO MAKE SURE THAT WE ARE NOT OPENING OURSELVES UP TO FRAUD, WASTE, AND
ABUSE OF TAXPAYER MONEY. >> YES. ABSOLUTELY.
SO I THINK SO EVERY DEPARTMENT WOULD SAY THEY NEED MORE STAFF.
SO WE HAVE REALIGNED EXISTING STAFF MEMBERS AND ADJUSTED.
SO WE HAVE TWO MORE SUPERVISOR CONTROLS IN PLACE IN THIS PROGRAM BY READJUSTING EXISTING STAFF. AND YES, WE'LL CONTINUE TO LOOK AT THAT, AS HAS BEEN MENTIONED, WE DID HAVE PRETTY MUCH A DOUBLING OF THE AMOUNT OF PROJECTS WE'RE DOING IN A GIVEN YEAR COMPARED TO PREAUDIT -- PREH PREHOUSING BOND TIMES, SO WE DO HAVE MORE PROGRAMS, BUT IT'S REALLY NOT JUST THE PROJECTS, IT'S ALSO ALL OF THE EXTRA SERVICES WE'RE DOING, AND WHEN WE HAVE NEW STAFF TO PROVIDE THE PROJECTS WITH THE HOUSING BOND, WE DID HIRE NEW HOUSING BOND STAFF, BUT THEY ALL REQUIRE TRAINING AND TURNOVER, SO PART OF THE CHANGE WE PUT IN PLACE IS NOT JUST DOING TRAINING ONCE, BUT DOING IT PERIODICALLY AND HAVING MORE FORMAL TR TRAININGS VERSUS PEER,
[00:40:02]
ON-THE-JOB TRAINING, JUST TO MAKE SURE IT'S CONSISTENT AND FREQUENT SEW WE STAY ON TOP OF I IT. POLICIES AND PROCEDURES, WHICH HAVE BEEN UPDATED REFLECT THE PRACTICES WE HAVE IN PLACE TO REALLYSERVE FAMILIES. >> WHYTE: AND CHAIR, I WOULD SA THAT MOVING FORWARD, AGAIN, NOT JUST WITH THIS PROGRAM BUT WITH OTHERS IS THAT WE SORT OF LOOK AT THIS AND LEARN A LITTLE BIT OF A LESSON HERE, WHICH IS THAT WE WANT TO DO MORE, WE HAVE MOR MONEY IN THE PROGRAM, WE WANT T GROW, BUT MAYBE WE NEED TO PUMP THE BRAKES A LITTLE BIT AND GRO AND EXPAND MAYBE AT A SLOWER PACE SO THAT WE DON'T HAVE SOME OF THESE ISSUES MOVING FORWARD WITH THIS PROGRAM OR OTHERS.
THANKS, CHAIR. >> VIAGRAN: THANK YOU. SO I THINK -- THANK YOU, VERONICA. THANK YOU FOR YOUR PRESENTATION.
THANK YOU FOR ADDRESSING THE ISSUES. SO I THINK WHAT I'M HE HEARING BEN AND TROY, AND WE CAN TALK WITH THIS AND COMMITTEE MEMBERS, I WOULD LIKE YOU TO CONSIDER, I FEEL LIKE I HAVE A SUBCOMMITTEE MEMBER RIGHT THERE SITTING WITH COUNCILMEMBER WHYTE, BUT WE NEED TO LOOK AT A SUBCOMMITTEE AS WE LOOK AT FUTURE BONDS, AS WE LOOK AT FUTURE EXPENSES OF WHAT ARE SOME THINGS THAT WE CAN ADDRESS AND EXPECTATIONS OF THIS COMMITTEE THAT WE ARE -- DO WE NEED TO SLOW IT DOWN OR PUT THE MORE SPECIFIC DEFINITIONS REGARDING PERFORMANCE METRICS, AND BUDDY, NOW YOU'RE WITH US AND LE LEADING AUDIT.
SO WE CAN HAVE THAT CONVERSATION WITH YOU SO THAT WHEN WE COME FORWARD WE CAN UNDERSTAND A NEW INFLUX OF MONEY COMES INTO A DEPARTMENT. I CAN JUST IMAGINE, I'M THINKING ARTS AND CULTURES, LET'S SAY SOME MIRACLE THEY GET $5 MILLION, WHAT WOULD THAT DO FOR THEM? WOULD THEY HAVE THE SAME ISSUES WITH INTERNAL CONTROLS BECAUSE OF STAFFING ISSUES OR BECAUSE OF THINGS THAT WERE WORKING -- SYSTEMIC ISSUES AS COUNCILMEMBER WHYTE DID THAT.
SO I'M ANTICIPATING THAT OUR BUDGET CONTINUES TO GROW, SO MAYBE WE HAVE THOSE CONVERSATIONS, SET SOME DATES, HAVE A FEW MEETINGS, BRING IN STAKEHOLDERS FROM WITHIN THE DEPARTMENTS OF CITY OF SAN ANTONIO, AND SEE
HOW WE COULD DO THAT. >> SO CHAIR IF I COULD MAKE A COUPLE OF OVERALL COMMENTS AND OBSERVATIONS. I THINK IT'S IMPORTANT FROM THE STANDPOINT OF OBVIOUSLY WE'RE A BIG ORGANIZATION. WE DO A LOT OF DIFFERENT PROGRAMS AND SERVICES ACROSS THE BOARD. I THINK WHEN YOU SEE AND LOOK BACK AT THE AUDIT AGENDAS. YOU WON'T HAVE SIGNIFICANT ISSUES OR FINDINGS.
NONE OF US WANT TO BE IN THIS POSITION WHERE WE GET A REPORT LIKE THIS, BUT I THINK THAT CONTEXT IS IMPORTANT. ACROSS THE ORGANIZATION, THERE'S A LOT OF GOOD WORK BEING DONE ON PROGRAMS WHERE WE DON'T HAVE ISSUES.
I THINK IN THIS CASE WHEN I LOOK AT IT AND STEP BACK AND WE TALK ABOUT, YOU KNOW, HOW DID WE END UP HERE WITH THIS AUDIT REPORT, I THINK PART OF IT IS WHEN YOU LOOK AT THE AUDIT AND YOU LOOK AT THE FINDINGS, SOME OF IT, A LOT OF IT IS AROUND POLICIES AND PROCEDURES; RIGHT? SO THE DEPARTMENT HAD THEM. BUT THEY WERE AT A SCALE BEFORE THEY GOT THIS INFLUX OF DOLLARS WHERE YOU COULD MANAGE THAT A LITTLE BIT EASIER, AND IT MAY HAVE NOT BEEN THE MOST EFFICIENT WAY TO DELIVER IT ONCE WE ADDED ALL OF THOSE PROGRAMS. SO HINDSIGHT BEING 20/20. MORE WORK ON THE FRONT END.
HOW DO YOU DEPLOY. BE MORE EFFICIENT. HOW DO YOU BE MORE EFFI EFFICIENT. THAT'S WHAT I WOULD POINT OUT.
WE SIT DOWN, LOOK AT HOW DOES THIS IMPACT WHAT WE'RE DOING.
DO WE RETOOL THAT BECAUSE NOW WE'RE NOT -- I DON'T HAVE THE METRICS BECAUSE WE'RE NOT PRODUCING -- WE'RE PRODUCING 100 HOMES. SO THAT POLICIES AND PROCEDURES NEEDS TO CATCH U UP. FROM BUDDY'S PERSPECTIVE.
OUR MANUAL SAYS WE'LL DO X. THAT'S WHAT IT'LL AUDIT. SO IT DOESN'T MATTER IF IT'S BEEN UPDATED OR NOT, THAT'S THE STANDARD. SO WE DIDN'T MEET THAT STANDARD, BUT IT MAY NOT HAVE BEEN ON THE FRONT END, BUT THAT'S SOMETHING WE NEED TO WORK ON. THE RESOURCE ISSUE, OBVIOUSLY AS WE LOOK AT THE BUDGET PROCESS AND AS IT CONTINUES TO GROW AND YOU ALL SET PRIORITIES AND WE LOOK AT SERVICES. THIS'LL BE IN THE FRONT END OF MINE.
WE'LL CONTINUE TO GET IN FRONT OF THESE BECAUSE WE SHARE THE SAME GOAL, EFFICIENT DELIVER RI OF SERVICES, DON'T WANT TO CREATE AN ENVIRONMENT THAT IS SUSCEPTIBLE TO FRAUD, WASTE, ABUSE, WE'VE GONE BACK AND LOOKED AT IT, WE DON'T WANT TO BE IN THAT SITUATION. WE WANT TO HAVE THE CONTROLS IN PLACE. SO WE'RE COMMITTED TO DOING THAT.
ON FOLLOW UP AUDITS, THAT'S A STANDARD PRACTICE THAT'S BEEN IN PLACE WHEN WE HAVE AUDITS LIKE THIS. WE LIKE THAT. WE LIKE THE TIME FRAME BECAUSE IT ALLOWS US AS VERONICA AND TEAM HAVE DONE A GREAT JOB OF UPDATING THE MANUAL TO PUT US IN A POSITION TO DELIVER THIS IN THE FUTURE, BUT LET'S LET IT
[00:45:05]
RUN FOR 6 MONTHS. BUDDY'S TEAM WILL GO BACK AND LOOK AT IT.IF THERE'S SOMETHING ELSE WE MISSED WE CAN TWEAK AGAIN. SO THAT'S ANOTHER GREAT CONTROL AND MECHANISM FE FEEDBACK TO THE COMMITTEE. SO I WANT TO SHARE SOME CONTEXT, WANTED TO PROVIDE THAT FEEDBACK. THANKS FOR YOUR INPUT AND
TIME. APPRECIATE IT. >> VIAGRAN: ALL RIGHT.
ANY OTHER DISCUSSION? IF NOT, WE NEED A MOT MOTION.
WE NEED A MOTION TO ACCEPT THE AUDIT. >> I'LL MAKE THE MOTION.
>> VIAGRAN: WE HAVE A MOTION. DO WE HAVE A SECOND. >> SECOND.
>> VIAGRAN: I HAVE A SECOND. ALL IN FAVOR SAY AYE.
>> VIAGRAN: ANY OPPOSED? MOTION CARRIES. ALL RIGHT.
THE TIME IS NOW 10:49, AND THE MEETING IS NOW ADJOURNED, THANK
* This transcript was compiled from uncorrected Closed Captioning.