[6. 19-6859 Required Communications for the FY 2019 External Audit [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer, Finance]]
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PREVIOUS YEARS IN TERMS OF WHAT THOSE RESPONSIBILITIES ARE FROM A TIMELINE PERSPECTIVE.
UM, WE'VE BEEN THROUGH OUR PLANNING PROCESS.
WE'VE ACTUALLY BEEN OUT HERE FOR INTERIM TESTING WHERE WE'VE LOOKED AT, UH, A NUMBER OF THE SINGLE AUDIT PROGRAMS AS WELL AS SOME OF THE REVENUE STREAMS THAT THE, UH, CITY RECEIVES.
AND SO WE'VE, UH, DONE SOME OF THAT PRELIMINARY TESTING, UH, WITH NO PARTICULAR ISSUES AT THIS POINT IN TIME.
AND THEN WE'LL BE BACK OUT IN DECEMBER, UH, THROUGH FEBRUARY TIMEFRAME TO PERFORM THE FINAL FIELD WORK.
AND THEN WE'LL COME BACK TO YOU IN PROBABLY AROUND THE MARCH TIMEFRAME TO DO THE FINAL PRESENTATION OF THE AUDIT RESULTS, UH, FOR THE, ALL THE DIFFERENT AUDITS THAT WE LOOK AT, UM, FROM A MATERIALITY STANDPOINT.
UM, THERE'S, THERE'S A COUPLE OF, UH, BENCHMARKS THAT WE LOOK AT, UH, FROM THE FINANCIAL STATEMENT SIDE, UH, BECAUSE THERE ARE MULTIPLE OPINION UNITS, UH, THERE ARE DIFFERENT MATERIALITIES FOR THOSE OPINION UNITS.
AND SO THAT'S EITHER GONNA BE BASED ON TOTAL ASSETS, UH, TOTAL REVENUES OR TOTAL EXPENDITURES.
AND THEN FOR THE FEDERAL AND STATE SINGLE AUDIT MATERIALITY IS DETERMINED BASED ON THE, UH, TOTAL EXPENDITURES FOR EACH MAJOR PROGRAM, UH, THAT WE PERFORM PROCEDURES ON.
THE NEXT, UH, SLIDE IS REALLY JUST THE VIEWS OF THOSE CHARGED WITH GOVERNANCE.
UM, AGAIN, THIS IS WHERE, UH, WE LIKE TO GET YOUR INPUT IF THERE'S ANY, UH, PARTICULAR RISK AREAS, UH, THAT YOU BELIEVE WE SHOULD BE CONSIDERING AS WE CONTINUE KIND OF OUR AUDIT PLANNING PROCESS AND DEVELOPING OUR AUDIT APPROACH.
AND SO IF THERE IS ANYTHING THAT YOU WANNA SHARE WITH US TODAY, THAT'S GREAT, BUT IF YOU WANNA THINK ABOUT IT AND COMMUNICATE TO US LATER, UM, THEN YOU CAN SHARE THAT INFORMATION WITH US LATER, AND WE'LL TAKE THAT INTO CONSIDERATION AS WE, UH, CONTINUE PLANNING.
THE NEXT SLIDE IS JUST THE SIGNIFICANT RISK AND THE OTHER AREAS OF FOCUS THAT WHAT WE LOOK AT DURING OUR AUDIT.
IN THE APPENDIX, YOU'LL SEE THERE ARE SOME SLIDES THAT ACTUALLY GO INTO MORE DETAIL OF THE ACTUAL PROCEDURES THAT WE PERFORM.
UM, THE SIGNIFICANT RISKS, MOST OF THEM ARE THE REVENUE STREAMS AND THEY'RE LISTED THERE.
AND THEN WE ALSO DO COMPLIANCE WITH THE UNIFORM GUIDANCE AND THE STATE SINGLE AUDIT.
THE NEXT SLIDE IS THE AREAS OF FOCUS SPECIFICALLY FOR THE SINGLE AUDIT.
SO THIS IS BASED ON OUR MAJOR PROGRAM DETERMINATION.
UM, LOOKING AT THE EXPENDITURES FOR THE PROGRAMS, THESE ARE THE ONES THAT POPPED OUT FOR INTERIM TESTING.
AND AS ANGIE MENTIONED, DURING INTERIM, WE DID A LOT OF OUR PROCEDURES ON THESE PROGRAMS ALREADY.
SO THOSE ARE THE ONES WE'VE LOOKED AT.
WHEN WE COME BACK AT FINAL, WE'LL GET AN UPDATED SCHEDULE FROM MANAGEMENT, AND THERE COULD BE ADDITIONAL PROGRAMS THAT WE'LL HAVE TO TEST AS WELL.
AND THEN ANGIE MENTIONED WE ALSO DO THE PASSENGER FACILITY CHARGE COMPLIANCE AUDIT.
AND THEN, UM, IN ADDITION TO OUR AUDIT PROCEDURES, WE ALSO LOOK AT THE TECHNOLOGY ENVIRONMENT, UH, FOR THE CITY, UH, PARTICULARLY THE SS A P SYSTEM, UM, AND LOOK AT THINGS SUCH AS SECURITY ACCESS, UH, PROGRAM MANAGEMENT, CHANGE MANAGEMENT.
AND THAT WORK ALSO HAS BEEN DONE, UM, ON AN INTERIM BASIS WITH NO ISSUES IDENTIFIED, UH, RELATED TO OUR TECHNOLOGY TESTING, AND THEN JUST OTHER AUDITORS AND WORK OF OTHERS.
UM, AS PART OF OUR AUDIT PROCESS, UM, WE DO OF COURSE HAVE, UH, THE CITY HAS COMPONENT UNITS THAT ARE AUDITED BY OTHER AUDITORS.
SO WE RELY ON THOSE OTHER AUDITORS FOR THEIR AUDIT REPORT.
AND WE'VE ALSO, IN THE APPENDIX, IDENTIFIED ALL OF THOSE COMPONENT UNITS AND THE RESPECTIVE AUDITORS FOR THOSE, UH, ENTITIES.
UM, WE DO, UH, RELY ALSO ON INTERNAL AND EXTERNAL SPECIALISTS FOR OUR TESTING, UH, IN THE AREA OF THE, UM, PENSION AND OPEP ACTIVITIES.
SINCE THOSE ARE BASED ON ACTUARIAL DETERMINATIONS.
WE HAVE AN IN-HOUSE ACTUARY THAT WILL LOOK AT THE REASONABLENESS OF THE ASSUMPTIONS.
UM, AND THEN FOR THE FAIR VALUE DETERMINATION ON THE INVESTMENTS, WE HAVE BOTH INTERNAL AND EXTERNAL SPECIALISTS THAT HELP US DO AN INDEPENDENT ESTIMATE OF THOSE FAIR VALUES.
AND THEN, AS WE MENTIONED EARLIER, WE HAVE OUR FOUR TEAMING PARTNERS, UM, AS PART OF OUR AUDIT PROCESS.
AND THEN THE LAST, UH, ITEM THAT WE JUST WANTED TO COMMUNICATE WAS JUST IN RELATION TO, UH, RELATED PARTIES AND RELATED PARTY TRANSACTIONS.
UM, AND RIGHT NOW WE'VE IDENTIFIED, UM, BASED ON OUR UNDERSTANDING OF THE OPERATIONS OF THE CITY, UH, THOSE ENTITIES THAT ARE DEEMED TO BE RELATED PARTIES.
SO WE DO MAKE SURE THAT WE'RE LOOKING AT THE TRANSACTIONS THAT OCCUR BETWEEN THOSE TO MAKE SURE THAT THEY'RE AT ARM'S LENGTH.
UM, AND IF THERE ARE ANY ADDITIONAL RELATED PARTIES, UM, THAT YOU GUYS ARE AWARE OF THAT WE SHOULD BE TAKEN INTO CONSIDERATION, YOU COULD SHARE THAT WITH US AS WELL.
SO, UM, LIKE I SAID IN, THERE'S AN APPENDIX SECTION THAT GIVES A LITTLE BIT MORE DETAIL RELATIVE TO THE PROCEDURES.
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AND THEN ALSO THERE'S SOME INFORMATION RELATIVE TO SOME OF THE NEW G A SS B STANDARDS THAT ARE, UH, COMING OUT OR HAVE ALREADY COME OUT THAT WILL BE EFFECTIVE FOR THE CITY, UH, FOR THIS YEAR AND FUTURE YEARS.AND SO WE'LL BE, UH, LOOKING AT THOSE, UH, IN THE CURRENT YEAR FOR ANY, UH, ANY OF THOSE THAT ARE APPLICABLE FOR F Y 19 AND IMPLEMENT THOSE ACCORDINGLY.
SO WITH THAT, IF THERE ARE ANY QUESTIONS, WE'RE MORE THAN HAPPY TO ADDRESS THEM AT THIS TIME.
DO ANY OF THE COMMITTEE MEMBERS HAVE ANY QUESTIONS? I DON'T AS WELL.
WELL, YOU JUST, IT'S, IT MIGHT BE SILLY, BUT OH, NO.
YOU SAID OPPORTUNITY UNITS, OR WHAT WAS THAT? COMPONENT UNITS.
UM, WHAT, CAN YOU DEFINE THAT FOR ME,
SO, UM, DO, WHAT DO Y'ALL
SO IF YOU THINK ABOUT LIKE SAWS, C P SS OR DISCREETLY PRESENTED COMPONENT UNITS, UM, BECAUSE THEY'RE LEGALLY SEPARATE, BUT THEY ARE, UM, OWNED BY THE CITY.
UM, AND THEN YOU HAVE SOME BLENDED COMPONENT UNITS THAT THEY PROVIDE SERVICES, UH, PRIMARILY FOR THE CITY.
SO THERE'S TWO SEPARATE TYPES, AND SOME OF THOSE ARE AUDITED BY OTHER AUDITORS HAVE THEIR OWN SEPARATE AUDIT REPORT THAT WE RELY UPON BECAUSE THEY ARE INCLUDED IN THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE CITY.
I, I, I, IT JUST SHOWS HOW COMPLEX THIS ALL THIS IS
[7. 19-6745 FY 2020 Biannual High Profile Report [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer, Finance]]
OKAY, THE NEXT ITEM, EXCUSE ME, ITEM NUMBER SEVEN.AND, UH, THIS IS, UH, AGAIN, A HIGH PROFILE.
THIS IS A REPORT ON WHAT THE HIGH PROFILE CONTRACTS COULD BE THAT WE'LL BE LOOKING AT, UH, IN THE UPCOMING YEAR.
AND IT'S JUST, UM, A WAY OF THE CITY LETTING US KNOW WHAT THE POTENTIAL ONES ARE AND HOW THEY MAY BE HANDLED THROUGH THIS COMMITTEE.
SO BEN OR TROY WHO'LL BE HANDLING THAT, UM, I'LL BE HANDLING THIS ONE AS WELL.
HE ANSWERS ALL THE HARD QUESTIONS.
UM, I GUESS IF AUDIO VISUAL CAN BRING UP THE PRESENTATION AS WELL, I APPRECIATE IT.
BUT IN THE INTERIM, UH, COUNCILMAN CHAIR, YOU JUST, YOU'RE EXACTLY RIGHT.
WE, UM, A FEW MONTHS AGO, I BELIEVE IN MAY, WE CAME FORWARD AND WE PRESENTED SOME CHANGES TO THE HIGH PROFILE PROCESS.
SO I'D LIKE TO KIND OF GO THROUGH THOSE AND REVISIT THOSE ON VERY BRIEFLY.
AND THEN GET INTO THE, THE FORECAST, UH, WHICH WE WILL BE PRESENTING A COUPLE DIFFERENT CATEGORIES OF THOSE SOLICITATIONS THAT MEET THE HIGH PROFILE DEFINITION THAT WOULD BE, UM, ANTICIPATED TO BE BROUGHT FORWARD OR ISSUED OVER THE NEXT SIX MONTHS, OCTOBER THROUGH, THROUGH, UM, THROUGH MARCH.
AND IN ADDITION TO THE PRESENTATION, WE, UM, JUST HANDED OUT, UM, SEVERAL COPIES, UH, MORE DETAILED OF THE HIGH PROFILE FORECAST.
AND AS I GO THROUGH THE PRESENTATION, I'LL REFERENCE BACK TO THAT AND KIND OF WALK Y'ALL THROUGH WHAT'S IN THERE AND HOW IT RELATES BACK TO THE ACTUAL PRESENTATION.
BUT AS A REMINDER, UM, WHAT IS A HIGH PROFILE SOLICITATION? HIGH PROFILE SOLICITATION ARE DISCRETIONARY NATURE, MEANING THAT, UM, AS CITY COUNCIL, YOU'LL HAVE THE ABILITY TO INFLUENCE, UM, OR EVEN CHANGE THE OUTCOME.
UM, IN ADDITION, THEY ARE OVER $1 MILLION.
UM, THEY'RE TYPICALLY A GENERATED HIGH LEVEL OF COMMUNITY INTEREST OR OTHER EXCEPTIONAL INTEREST, OR THEY'RE HIGHLY COMPLEX OR TECHNICAL IN NATURE.
OUR CONTRACT TERMS AND CONDITIONS THAT ARE NON-STANDARD OR COMPLEX, AS A REMINDER, AS I SAID, THESE ARE DISCRETIONARY.
TYPICALLY A LOW BID IS, UM, BASICALLY AWARDED BASED ON THE SPECIFICATIONS AND THE PRICE.
HENCE, WE DON'T HAVE ANY DISCRETION ON LOW BID CONTRACTS.
JUST WE HAVE A LITTLE BIT OF HISTORY.
NOW TO SHARE WITH YOU ON HIGH PROFILE SOLICITATIONS, TYPICALLY SINCE FISCAL YEAR 2015, WE'VE HAD AN AVERAGE OF ABOUT 41 HIGH PROFILE SOLICITATIONS.
AND AS A REMINDER, THOSE 41 SOLICITATIONS ARE HOW MANY ARE PROPOSED DURING THE YEAR.
THAT'LL COME THROUGH THIS COMMITTEE TWICE IN A PRES SOLICITATION.
UM, IN WHICH WE WILL KIND OF INTRODUCE THE SCOPE, THE TERM, THE EVALUATION COMMITTEE, UM, THE POINTS, AND ALSO THE PREFERENCES THAT ARE GONNA BE ATTACHED TO THAT.
THAT BASICALLY PRECEDES THE ISSUANCE OF THE SOLICITATION TO GET YOUR FEEDBACK AND INPUT.
WE ISSUE THE SOLICITATION, IT'S OUT ON THE STREET ADVERTISED FOR A PERIOD OF TIME.
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THE EVALUATION COMMITTEE ACTUALLY EVALUATES THAT.ONCE THAT EVALUATION IS COMPLETE, WE COME BACK TO THIS COMMITTEE AND A POST SOLICITATION IN WHICH WE ACTUALLY SHARE THE EVALUATION RESULTS.
AND KEVIN AND I WILL TALK TO THE DUE DILIGENCE ON THOSE.
IF THERE'S ANYTHING OF, UM, THAT NEEDS TO BE BRING UP AND DISCUSSED.
AS I MENTIONED IN MAY, WE BROUGHT FORWARD, UM, SEVERAL CHANGES AND NEXT TWO SLIDES WE'LL, WE'LL HIGHLIGHT THOSE.
AND JUST AS A REMINDER, THERE IS NO CHANGE TO THE DEFINITION OF A HIGH PROFILE SOLICITATION.
THE MILLION DOLLARS IS ACTUALLY ESTABLISHED THROUGH THE EX ETHICS CODE.
AND SO WE WILL BE KEEPING THAT DEFINITION IN PLACE.
BUT WE ARE RECOMMENDING BRINGING FORWARD ANOTHER CATEGORY AS SELECT AND THAT, UM, SELECT PRO HIGH PROFILE CATEGORY.
UM, WHAT WE'RE RECOMMENDING IS THAT THOSE BE ESTABLISHED ARE LOOKED AT FROM A FINANCIAL IMPACT WITH THE VALUE OVER 25 MILLION A CONTRACT TERM OF 10 YEARS OR MORE.
A HIGH LEVEL OF POLICY OR PUBLIC SAFETY IMPLICATIONS, HIGH LEVEL OF COMMUNITY OF STAKEHOLDER IMPACT, INTEREST AND PROFESSIONAL JUDGMENT.
I JUST SHARED WITH YOU THAT HISTORICAL, UM, SINCE 2015 OF THOSE HIGH PROFILES, WHAT WE DID IS WE WENT BACK AND LOOKED THROUGH THOSE FOR CHARACTERISTICS THAT WE THOUGHT THAT SHOULD BE IDENTIFIED AS SELECT.
AND THESE SELECT WOULD BE BROUGHT FORWARD TO B SESSION TO BASICALLY INCREASE THAT TRANSPARENCY AND COMMUNICATION WITH THE MAYOR AND THE CITY COUNCIL AND THE COMMUNITY IN GENERAL.
SO THESE ITEMS THAT I'M GONNA SHARE WITH YOU AFTER THIS THAT WE'VE IDENTIFIED AS SELECT, THEY WOULD GO TO THE, UM, FULL COUNCIL ON A B SESSION.
WE ARE PLANNING ON BRINGING THESE FORWARD EVERY SIX MONTHS, A BIANNUAL FORECAST TO THIS COMMITTEE AND TO THE FULL COUNCIL ON A B SESSION, SEPTEMBER AND FEBRUARY.
DO YOU HAVE PRE AND POST SOLICITATION BRIEFING FOR THESE SELECT SOLICITATIONS? JUST A SUMMARY, UM, OF THE CHANGES BY SELECT AND THE HIGH PROFILE SOLICITATIONS, THESE SELECT HIGH PROFILE SOLICITATIONS THAT WILL BE GOING TO B SESSION WILL BE PRESENTED TWICE A YEAR, AS I MENTIONED.
UM, AS WE'VE RECOMMENDED IN THE PAST, THERE WOULD BE NO AUDIT AND ACCOUNTABILITY PRESENTATION.
SO THESE ONES THAT ARE IDENTIFIED AS SELECT, WE WOULD BE TAKING THEM DIRECTLY TO B SESSION.
THEY WOULD NOT BE COMING TO THE AUDIT AND ACCOUNTABILITY.
UM, THE RESPONDENT NAMES WOULD BE PROVIDED.
SO ONCE WE HAVE FINALIZED OUR EVALUATION AND WE SHOW THE, OR DISCLOSED THE EVALUATION MATRIX AT B SESSION, WE WOULD BE IDENTIFYING THOSE RESPONDENTS, UM, WHO WAS AWARDED AND WHO DID NOT WIN THE ACTUAL, UM, THE ACTUAL SOLICITATION.
THERE IS NO CHANGE TO THE RESTRICTIONS ON COMMUNICATIONS.
AS A REMINDER, THOSE RESTRICTIONS ARE FROM THE TIME THAT WE ISSUE A SOLICITATION TO THE TIME IT'S POSTED ON AN A SESSION AGENDA.
UM, THERE WOULD BE NO COMMUNICATION WITH CITY COUNCIL BY THESE VENDORS.
SO THERE'S THE RESTRICTION ON COMMUNICATIONS WOULD BE IN PLACE OUTSIDE OF THE SELECT HIGH PROFILE SOLICITATIONS.
THE HIGH PROFILE SOLICITATIONS, THE PROCESS RELATIVELY STAYS THE SAME.
THOSE WOULD BE COMING THROUGH THIS COMMITTEE TWICE, AS I MENTIONED, AS A PRE AND A POST TWICE A YEAR.
UM, AS WE DISCUSSED IN THE PAST, RESPONDENT NAMES WILL NOT BE DISPLAYED, BUT WE WILL COME BACK TO THIS COMMITTEE AFTER Y'ALL HAVE DELIBERATED AND TAKEN YOUR ACTION ON THESE AND BRING THOSE AND COMMUNICATE, COMMUNICATE THOSE TO YOU IN THE FORM OF A MEMO AFTER THE COMMITTEE HAS TAKEN PLACE.
UM, AGAIN, NO CHANGE TO RESTRICTIONS ON COMMUNICATIONS.
SOME ADDITIONAL CHANGES THAT WE HAVE TALKED ABOUT, UM, IS THAT TO THIS COMMITTEE AND IN B SESSION, WE WOULD PROVIDE THE INITIAL AND THE FINAL SCORE MATRICES.
THE INITIAL SCORE MATRIX MATRIX IS GONNA REALLY BE, UM, THE EVALUATION COMMITTEE'S POINTS THAT ARE, UM, PROVIDED AFTER THEY HAVE READ THE PROPOSAL AND HAVE MET.
IN TERMS OF EVALUATION, THE FINAL SCORE MATRIX MAY CHANGE BECAUSE THEY MAY BE THINGS HAPPEN SUCH AS A BEST AND FINAL OFFER.
UM, THEY MAY HAVE DONE INTERVIEWS WITH THE POTENTIAL RESPONDENTS, UM, OR THEY HAVE DONE SITE VISITS.
SO THERE MAY BE A CHANGE BETWEEN THAT INITIAL EVALUATION AND THE SECOND AND FINAL SCORE MATRIX.
AND WE WILL BE SHOWING Y'ALL BOTH OF THOSE.
SO YOU CAN SEE HOW IT'S CHANGED BASED ON, UM, THE PROCESS I JUST DESCRIBED.
AND THEN THE LAST ITEM WAS AN ITEM THAT, UM, UH, COUNCILMAN PERRY ADVOCATED FOR WAS INCREASING THE ADVERTISING PERIOD, THE TIME IT WAS OUT ON THE STREET FROM 30 TO 45 DAYS.
SO THAT SUMMARIZES THOSE CHANGES.
THE NEXT SLIDE STARTS GETTING INTO THE ACTUAL, UM, BIANNUAL FORECAST.
AND YOU'RE GONNA HAVE WHAT IT'S HANDED OUT TO YOU AS A DOCUMENT LIKE THIS, AND IT'S GONNA BE MORE DETAIL AND DESCRIPTIONS.
AND EACH OF THESE SLIDES WILL HAVE A SECTION IN HERE THAT WILL TIE TO THE SLIDES.
SO FOR EXAMPLE, IN YOUR ACTUAL HANDOUT, THERE WILL BE A SLIDER SECTION THAT TIES TO THE PRESENTATION, AND THEN BEHIND THAT WILL BE A MORE GENERAL DESCRIPTION.
SO EARLIER WHEN I PRESENTED THE SELECT, UM, THE SELECT CATEGORY, AND WE ACTUALLY WORKED WITH THE DEPARTMENTS TO OVER THE NEXT SIX MONTHS,
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IDENTIFY ALL THE SOLICITATIONS THAT WOULD BE COMING FORWARD, ANSWERS OR ANY SPECIFIC QUESTIONS.WE ACTUALLY HAVE DEPARTMENT DIRECTORS HERE THAT CAN ANSWER IF THERE'S, UM, A LOT MORE DETAIL THAT WE WANT TO GET INTO.
BUT FOR THE SELECT CATEGORY IN THE FORECAST, THERE ARE THREE AREAS THAT WE WOULD BE RECOMMENDING TO BE IDENTIFIED AS SELECT AND DO AND TO BE PRESENTED IN B SESSION.
THAT WOULD BE THE AVIATION TERMINAL, BEEF, FOOD, AND CON AND BEVERAGE CONCESSIONS.
AND IF YOU TURN TO THE DETAIL, UM, IT'S GOING TO TELL YOU THE FORECASTED SOLICITATION DATE, THE PROJECT NAME, A LITTLE MORE DETAILED DESCRIPTION ABOUT IT.
FOR EXAMPLE, ON THE TERMINAL B FOOD AND BEVERAGE CONCESSION, THAT THIS WOULD BE A CONCESSIONAIRE TO LEASE, OPERATE, MANAGE, AND OUR SUBLEASE UP TO EIGHT, FOOD AND BEVERAGE CONCESSIONS.
AND TERMINAL B, THE PROPOSED TERM OF THE CONTRACT IS SEVEN YEARS, AN ESTIMATED VALUE OF 8.1 MILLION WITH AN ANTICIPATED COUNCIL DATE OF OCTOBER OF 2020.
UM, THE SECOND ONE IS THE 21 AND 22 CONSOLIDATED FUNDING, UH, TO BE ISSUED BY D H SS AT A TOTAL OF 42.4 MILLION.
AND THEN WE HAD THE HEMISPHERE CIVIC PARK, WHICH IS DEVELOPMENT OF THE HEMISPHERE CIVIC PARK, ABOUT 21 MILLION.
SO THOSE ARE THE THREE ITEMS THAT, BASED ON ALL THE CRITERIA THAT I MENTIONED THAT WE'VE IDENTIFIED, WE'RE PROPOSING TO Y'ALL TO ACTUALLY MOVE FORWARD TO THE FULL COUNSEL IN THE TERMS OF A B SESSION.
THE NEXT SLIDE WOULD BE THE HIGH PROFILE SOLICITATIONS, AND THESE WOULD BE THE ONES THAT WOULD BE COMING THROUGH THE AUDIT COMMITTEE AS AN INDIVIDUAL OR AS CONSENT.
AND IN THE LISTINGS IN YOUR PACKET, WE HAVE RECOMMENDED THOSE THAT WE FEEL RISE TO THE OR NEED A INDIVIDUAL BRIEFING.
AND THEN BEHIND THAT ARE THOSE THAT WE'LL BE PROPOSING AS CONSENT.
SO AS FAR AS INDIVIDUAL BIANNUAL FORECAST, WE HAVE 12 THAT WE'RE PROPOSING AS AN INDIVIDUAL SOLICITATION THROUGH SIX DIFFERENT DEPARTMENTS.
AND I'LL GO THROUGH THESE 'CAUSE THERE'S NOT A WHOLE LOT WITH THE AVIATION DEPARTMENT.
WE HAVE THE TERMINAL A AND B NEWS, GIFT, RETAIL CONCESSIONS.
WE HAVE THE AIRFIELD IMPROVEMENTS PACKAGE FOR CENTER CITY.
WE HAVE THE AZAR ZAMORA, PROPERTY REDEVELOPMENT, HR.
WE HAVE A TEMPORARY STAFFING SERVICES CONTRACT, I T S D, THE CITYWIDE SECURITY SYSTEMS AND SECURITY OFFICER SERVICES FOR NEIGHBORHOOD HOUSING, THE NEIGHBORHOOD IMPROVEMENTS, BOND PROGRAM DEVELOPMENT.
AND WITH T C I, THERE'S FIVE THAT ARE LISTED THERE AS WELL.
AND AGAIN, IN THE PACKAGE THERE'S GONNA BE MORE DETAIL IF YOU'ALL WISH TO GO BACK TO THOSE.
AS FAR AS THE HIGH PROFILE SOLICITATIONS THAT WE ARE RECOMMENDING TO BE ON CONSENT, I BELIEVE THERE'S 23, UM, 23 SOLICITATIONS.
UM, I CAN GO THROUGH THEM MORE DETAIL, BUT THERE'S QUITE A FEW OF THEM HERE.
UM, FROM AVIATION CENTER CITY, V H S, FIRE, HR, I T S D, LIBRARY, NEIGHBORHOOD HOUSING SUSTAINABILITY, AND QUITE A BIT TO THE RIGHT FOR T C I.
SO IF THERE'S ANY OF THOSE THAT Y'ALL LIKE TO SPEND SOME MORE TIME ON, WE CAN CERTAINLY DO THAT OR WE CAN COME BACK TO THEM.
AND FINALLY, THERE'S A SEPARATE PACKAGE THAT'S AN INDIVIDUAL HANDOUT, AND THESE ARE GONNA BE THE ITEMS THAT ARE IN PROGRESS.
SO THESE ARE THE ITEMS THAT HAVE BEEN, UM, ISSUED IN 2019 AS PART OF THE OLD FORECAST OR EVEN PRIOR.
UM, THERE ARE TWO ITEMS ON THIS LIST THAT, AND ALL THESE ITEMS HAVE GONE THROUGH THIS COMMITTEE.
ONCE THROUGH A PRES SOLICITATION.
ALL THESE ITEMS WOULD BE PENDING A POST SOLICITATION BRIEFING TO THIS COMMITTEE.
THERE'S TWO ITEMS ON THIS LISTING THAT ARE KIND OF TRANSITIONARY IN NATURE, AND THOSE ARE HIGHLIGHTED THERE.
WE HAVE THE DOCKLESS VEHICLES AND THE CITY TOWER FOOD AND BEVERAGE CONCEPTS.
THE DOCKLESS VEHICLES WENT THROUGH THIS COMMITTEE IN A PRES SOLICITATION.
IT ALSO WENT TO B SESSION TO THE FULL COUNCIL.
AND THAT WILL BE COMING BACK ONCE WE COMPLETE THAT SOLICITATION IN A, UM, B SESSION BRIEFING AS WELL AS A POST SOLICITATION.
AND THEN WE HAVE THE CITY TOWER FOOD AND BEVERAGE CONCEPTS.
THESE ARE TWO ADDITIONAL ITEMS THAT WE WOULD BE RECOMMENDING 'CAUSE THEY'RE TRANSITIONING NATURE THAT IN ADDITION TO THE THREE THAT I PRESENTED INITIALLY TO BE ADDED TO THE B SESSIONS, UM, AS PART OF THESE IN PROGRESS OR TRANSITION.
SO YOU'D HAVE A TOTAL OF FIVE THAT WOULD BE GOING BACK THROUGH B SESSION THAT WE'RE RECOMMENDING A STAFF REMAINDER OF THESE ITEMS, UM, ARE A VARIETY OF ITEMS FROM ALL THE SEPARATE, ALL THE DIFFERENT DEPARTMENTS.
UM, A LOT OF THESE HAVE GONE THROUGH THE PROCESS AS AN INDIVIDUAL IN THE PRE, AND SO WE WOULD NOT BEHAN RECOMMENDING CHANGING THAT COMING BACK TO THE COMMITTEE IN THE POST.
AND THEN WE HAVE THE CONSENT AGENDA, UM, ITEMS FOR THOSE THAT ARE IN PROGRESS AS WELL.
AND THERE'S ABOUT EIGHT OF THOSE.
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SO IN SUMMARY, THIS IS OUR HIGH PROFILE FORECAST AND IT'S AN OPPORTUNITY, UM, AS A COMMITTEE TO PROVIDE A, A STAFF ANY FEEDBACK IF YOU AGREE WITH OUR RECOMMENDATIONS OR WE HAVE CHANGES.WE'RE PLANNING ON PRESENTING THE SAME PRESENTATION TOMORROW AT B SESSION FOR THE FULL COUNCIL TO GET THEIR INPUT AND FEEDBACK AS WELL.
UM, WE'RE OPEN FOR ANY QUESTIONS THAT YOU MAY HAVE.
THAT CONCLUDES MY PRESENTATION.
MY, MY INTERPRETATION OF, UH, YOUR PRESENTATION ON WHAT YOU WOULD SAY WOULD BE RECOMMENDED CONSENT AGENDA ITEMS REALLY JUST DEPENDS ON WHAT THOSE AUDITS TURN OUT.
THEY VERY WELL MAY FIND SOMETHING UNUSUAL THAT THE COMMITTEE NEEDS TO ADDRESS AS AN INDIVIDUAL ITEM.
UH, BUT THE HISTORY OF THOSE PRIOR AUDITS INDICATE THAT, YOU KNOW, THERE WEREN'T MANY PROBLEMS THERE THAT NEEDED TO BE RESOLVED AS SUCH, UNLESS THERE'S AN UNUSUAL PROBLEM THAT MIGHT POP UP AGAIN.
UH, THERE THERE RATHER ROUTINE IN NATURE.
AND, AND IS THAT A GOOD INTERPRETATION OF WHAT YOU'RE SAYING ABOUT THOSE? UH, YES SIR.
THE CONSENT ARE GONNA BE FAIRLY ROUTINE.
I MEAN, AS YOU'RE ABSOLUTELY CORRECT, THERE MAY BE SOMETHING THAT COMES UP DURING THE SOLICITATION THAT, THAT WE AS STAFF WOULD RECOMMEND TO YOU THAT WE BRING FORWARD OR BUMP TO INDIVIDUAL.
ALSO, IN ADDITION TO THAT, THERE MAY BE THINGS THAT ARE ON THE HIGH PROFILE FORECAST THAT WE'VE IDENTIFIED AS INDIVIDUAL OR CONSENT THAT SOMETHING MAY COME UP AND WE MAY RECOMMEND, OR Y'ALL MAY RECOMMEND TO ACTUALLY MOVING THAT TO A B SESSION MM-HMM.
UM, AND SO IT WORKS THAT WAY AS WELL.
CHAIRMAN, LEMME JUST CLARIFY ONE THING.
EVERYTHING THAT CHARGES PRESENTED, IT'S GONNA BE A, A SOLICITATION, RIGHT? BUT IT'S THE SAME CRITERIA AS YOU DESCRIBED.
IF THERE'S NOTHING, YOU KNOW, SIGNIFICANT OR WE FEEL LIKE IT'S PRETTY ROUTINE, THEN WE WOULD RECOMMEND IT STAY ON THE CONSENT AGENDA.
BUT YOU ALL, AS, AS THE COMMITTEE, ALWAYS HAVE THE ABILITY TO CHANGE THAT EITHER DURING THE PROCESS.
SO IF WE'RE GOING THROUGH SOMETHING, WE SEE SOMETHING, WE CAN BRING IT TO YOU ALL.
IF Y'ALL HEAR OF SOMETHING, YOU CAN CHANGE IT AND MOVE IT OVER TO INDIVIDUAL.
UM, I THINK TODAY WE'RE REALLY JUST LOOKING FOR SOME FEEDBACK ON HOW WE'VE GOT THINGS CATEGORIZED FROM A SOLICITATION PERSPECTIVE IN PARTICULAR, THOSE COUPLE THAT WE'VE RECOMMENDED GOING TO FULL B SESSIONS.
SO IF THERE'S OTHERS ON THE LIST THAT YOU THINK WE NEED TO ADD TO THAT OR SOME THAT WE'VE RECOMMENDED THAT YOU THINK MAYBE AREN'T THAT SIGNIFICANT THAT WE WOULD MOVE BACK TO THE AUDIT COMMITTEE, WE CAN DO THAT AS WELL.
WELL, I'D JUST LIKE TO GIVE ALL THE COMMITTEE MEMBERS AN OPPORTUNITY TO LOOK THIS OVER IN A LITTLE MORE DETAIL AFTER HEARING YOUR PRESENTATION ON, UH, YOU KNOW, THE, THE REQUIREMENTS THAT WE'VE PUT IN PLACE.
BY THE WAY, WE DIDN'T GET THOSE FIRST FIVE PAGES IN OUR HANDOUT.
WE STARTED OFF BASICALLY WITH PAGE SIX.
SO ALL OF YOUR EXPLANATION PRIOR TO THAT WE DIDN'T RECEIVE TO LOOK AT WITH YOU, SO RIGHT.
AND THAT WAS DUE TO THE LATE NATURE.
AND THIS WAS JUST THE HANDOUT OF THE ACTUAL FORECAST.
IF YOU COULD, IF YOU COULD ALSO SEND US THAT FIRST PART OF THE PRESENTATION FOR US TO LOOK AT, AND I WOULD JUST SAY THAT TO ANY OF THE COMMITTEE MEMBERS, AS YOU REREAD THOSE REQUIREMENTS, UH, THOSE EXPECTATIONS AND, AND LOOK AT ALL OF THESE, UH, ITEMS, IF YOU FEEL THERE'S ANYTHING THAT MAY NEED TO BECOME A, A HIGHER HOPE, UH, WE WOULD WANNA MOVE TO COUNCIL.
UH, OR IF WE THINK THERE'S SOMETHING THAT SEEMED, SEEMS TO BE A CONSENT ITEM THAT, YOU KNOW, WE MAY WANT TO EXPLORE MORE, WE'LL SHIFT THIS LIST AROUND A LITTLE BIT.
IF THERE'S A, YOU KNOW, AN AGREEMENT WITH THE COMMITTEE THAT WE NEED TO MAKE SOME ADJUSTMENTS, WE CAN TALK ABOUT THAT AT THE NEXT MEETING.
ANY OTHER QUESTIONS OR COMMENTS? COUNCILWOMAN, THANK YOU.
MY QUESTION IS ABOUT THE, UM, THE CHANGES THAT YOU ALL ARE RECOMMENDING ON THE HIGH PROFILE, UH, AND THE SELECT, AND I KNOW THAT THEY'RE GOING TO BE SESSIONED DIRECTLY.
HOW DO YOU GAUGE, UH, COMMUNITY STAKEHOLDER IMPACT AND HOW DO YOU GAUGE PROFESSIONAL JUDGMENT OR HOW IS THAT DETERMINED? I THINK BASED ON OUR PAST EXPERIENCE, I MEAN, UM, YOU ACTUALLY HAVE A LOT OF CONTACT THROUGH THE COMMUNITY.
UM, PRIOR TO ACTUALLY ISSUING THE SOLICITATION, THERE WILL BE CONTACT EITHER COMING THROUGH THE COMMITTEE, UM, THE COUNCIL OR DIRECTLY TO STAFF.
SO BASED ON THAT ENGAGEMENT, YOU KIND HAVE A SENSE OF HOW IMPORTANT THIS IS GONNA BE TO THE COMMUNITY.
WE ALSO KNOW, BASED ON PAST EXPERIENCE, UM, THINGS, FOR EXAMPLE, WHEN YOU LOOK AT, WHEN YOU LOOK AT, UM, SOME OF THE ITEMS IN HERE SPECIFICALLY, THERE'S ONE IN HERE FOR MEDICAL SUPPLIES THAT HAS GENERATED A LOT OF INTEREST IN THE PAST.
AND SO THAT'S, WE BROUGHT THAT ONE THROUGH THE COMMITTEE AND IT'S GONNA BE OTHER THINGS THAT'S GENERAL, THE PROFESSIONAL JUDGMENT THAT'S TRULY GONNA BE BASED ON, UM, OUR EXPERIENCE.
UM, HISTORICALLY, UM, AS I'VE SHOWED YOU, WE HAVE FROM, WE'VE GOTTEN A LITTLE BIT OF EXPERIENCE BEHIND US ON THE HIGH PROFILE SINCE 15, SINCE SOME OF THESE TEND TO TURN OVER EVERY FIVE YEARS.
WE KIND OF HAVE THAT PAST EXPERIENCE TO, UM, KIND OF, UM, HELP SHAPE OUR RECOMMENDATIONS TO YOU AS A COUNCIL.
[00:25:01]
OKAY, GOOD.BECAUSE THEN ONE THING THAT I HAD ALSO RELATED, BECAUSE YOU BROUGHT UP MEDICAL SUP SUPPLIES, AND SO WE HAVE ONE UNDER FIRE RIGHT NOW, AND THEN IT SAYS A CITYWIDE CONTRACT FOR GENERAL MEDICAL SUPPLIES, WHICH MAY BE UTILIZED BY ALL CITY DEPARTMENTS WILL ALSO BE SOLICITED.
WHEN WILL THAT HAPPEN? UM, WE'RE GETTING READY TO SEND THAT OUT HERE IN THE NEXT WEEK, WEEK, AND THEN AFTER WE GET THE RESULTS BACK FROM THAT SOLICITATION, WE'LL BRING THOSE RESULTS BACK THROUGH THIS COMMITTEE.
SO I'M ASSUMING THAT WILL BE ADDED AS A SELECT ITEM, NOT A SELECT.
IT'S ACTUALLY THAT ONE'S ACTUALLY BEING, UM, RECOMMENDED TO COME THROUGH THIS COMMITTEE AS A HIGH PROFILE ONLY.
SO THEN BACK TO MY QUESTION ON THE SELECT.
SO YOU ALL I AM TALKING, THE STAFF HAS THE FULL DETERMINATION ABILITY TO SAY THIS IS SELECT, SO IT'S GOING TO FULL COUNSEL.
IT'S, THESE ARE PURELY RECOMMENDATIONS TO YOU AS A COMMITTEE, UM, BASED ON OUR EXPERIENCE.
IF Y'ALL SEE THINGS THAT Y'ALL WANT TO MOVE AROUND, THEN WE'LL TAKE THAT DIRECTION AND DO THAT.
SORRY, I WASN'T UNDERSTANDING THAT MM-HMM.
SO THANKS FOR CLARIFYING THAT.
I WAS A LITTLE BIT WORRIED ABOUT THAT.
AND THEN IS THERE ANY WAY THAT YOU CAN PROVIDE A SIDE BY SIDE, UM, COMPARISON OF HIGH PROFILE AND, AND WOULD YOU WOULD DETERMINE AS SELECT AS WELL, JUST LIKE THE BULLET POINTS.
I KNOW WE DIDN'T GET THE PRESENTATION, I KNOW IT WAS UP THERE, BUT IF YOU CAN JUST PROVIDE, I THINK THAT WOULD HELP BE HELPFUL TO A LOT OF MY COLLEAGUES.
SO JUST FOR CLARIFICATION ON THIS SHEET, WHICH IS THE CURRENT ONES, THE TWO IN THE GRAY, ARE YOU SAYING THOSE WILL BE COMING BACK TO US, OR THAT'S CHANGED IN OTHER SELECT THAT I THINK BECAUSE BECAUSE THEY'RE TRANSITIONARY IN NATURE AND THOSE, AND THOSE ACTUALLY CAME TO THIS COMMITTEE, INITIALLY, WE WOULD FINALIZE THE PROCESS AND BRING THOSE BACK THROUGH THIS COMMITTEE.
THEY WOULD ALSO BE GOING TO THE FULL B SESSION.
BUT IN THE FUTURE, THE ITEMS THAT WE'VE IDENTIFIED AS SELECT WOULD BE THE FIRST THREE ON THAT.
UM, THAT PAGE IN THE, IN YOUR, IN YOUR HANDOUT.
IN THE FUTURE, THOSE WOULD BE GOING DIRECTLY TO THE B SESSION.
IT WOULD NOT BE GOING THROUGH THE AUDIT ACCOUNTABILITY COMMITTEE.
AND SO TO CLARIFY, YOU'RE SAYING THESE, THESE THREE UNDER THIS PRESENTATION UNDER SELECT WOULD BE ONLY GOING TO CITY COUNCIL? WE WOULD NOT SEE THEM.
EVERYTHING UNDERNEATH THAT, WHICH IS THE INDIVIDUAL AND THEN THE CONSENT, THOSE THAT YOU'RE PROPOSING FOR CONSENT WOULD GO TO THIS COMMITTEE? CORRECT.
AND SO THE, THE ROLE OF THIS COMMITTEE IS TO CONFIRM THAT THE PROCESS, UM, FOR PROCUREMENT IS BEING FOLLOWED.
IS THAT SOMETHING THAT THE ONES THAT ARE SELECT WILL NOW BE DONE BY, UM, CITY COUNCIL SESSION B? THAT'S CORRECT.
CAN WE GO TO SLIDE FIVE? THERE YOU GO.
UM, OKAY, SO THIS IS, SO THIS IS A BRIEFING, BUT I, YOU KNOW, I, THIS ONE CAUGHT MY ATTENTION.
THIS IS PROPOSED PROCESS CHANGES.
UM, THE, THE, THE, THE PIECE ON THE ON HIGH PRO PROFILE SOLICITATIONS, NO CHANGE TO RESTRICTION ON COMMUNICATIONS.
UM, WELL, IT'S ACTUALLY ON, ON ON BOTH THOSE.
UM, I THOUGHT WE WERE GONNA HAVE A DISCUSSION ABOUT THAT.
AND, UH, YOU KNOW, WE, WE, WE TALKED ABOUT, YOU KNOW, THE KIND OF THE, THE, THE TIMEFRAME, UH, THAT, THAT, UH, THIS COMMITTEE AND OTHER COUNCIL MEMBERS CAN HAVE REGARDING, YOU KNOW, THE, THE FACT THAT, UH, SOME, SOMETIMES THESE RESTRICTIONS BECAUSE THEY'RE COUPLED WITH THE POSTING CAN BE VERY PROBLEMATIC IN TERMS OF HOW WE'RE SORT OF COMPRESSING THE TIME THAT, THAT FOLKS CAN TALK TO US.
UM, IS THAT SET, I MEAN, IS THAT, IS THAT WHAT I MEAN? I GUESS I'M, I WOULD, YEAH.
I THINK WE TALKED ABOUT IT BEFORE, UH, COUNCILMAN AND, UH, UH, TO REMIND THAT YOU AND THE COMMITTEE CHANGES TO THAT PARTICULAR TIMING.
'CAUSE YOU'RE RIGHT, IT DOES COMPRESS IT, BUT THAT'S DICTATED BY THE ETHICS CODE.
SO WE DID TALK ABOUT CHANGES TO THAT.
UM, AND, BUT THERE'S A PROCESS TO DO THAT.
AND, UM, I, WELL, I THINK IT WOULD START AT THE ETHICS REVIEW BOARD.
UH, AND HAVE THEM TAKE A LOOK AT THAT.
UH, AND PROBABLY PROVIDE THEM A RECOMMENDATION FROM THAT BODY, UH, TO EITHER THIS COMMITTEE OR THE GOVERNANCE OR TO THE BROADER COUNCIL, HOW THAT, UH, WE CAN MAKE THAT AN AGENDA ITEM ON THE, UH, NEXT ETHICS REVIEW BOARD.
BUT IT WOULD REQUIRE A CHANGE TO THE ETHICS CODE.
WELL, THAT WOULD BE MY REQUEST, I THINK.
UH, WE KNOW OBVIOUSLY WE DON'T WANT TO GIVE TOO MUCH TIME.
WE ALSO JUST FEEL THAT BECAUSE IT'S, IT'S LOCKED INTO WHEN THE POSTING, WHEN WE POST THE, THE AGENDA, THAT CAN SOMETIMES REALLY CREATE THIS COMPRESSION OF TIME AND TROUBLING TO, TO A LOT OF MY, WELL, MYSELF AND MY COLLEAGUES,
[00:30:01]
I THINK.SO I, I DEFINITELY WANNA HAVE THAT DISCUSSION.
AND I'LL, I'LL MAKE THAT REQUEST HERE THAT, THAT WE, I WORK WITH KEVIN AND WE'LL, UH, PUT THAT ON A, SOMETHING ON THE E R B FOR THEM TO START CONSIDERING THAT.
AND LET THEM KNOW THAT IT'S A HIGHER PRIORITY FOR THIS COMMITTEE.
COUNCILMAN, I JUST WANTED TO ADD O ON THAT ISSUE.
UM, I KNOW WE DID TALK ABOUT THAT, BUT, UM, BECAUSE IT'S IN THE ETHICS CODE, AS ANDY MENTIONED, WE'D HAVE TO GO THROUGH THAT PROCESS.
BUT WE ALSO CHANGED THE PROCESS HERE.
I'LL NOTED ON THE SLIDE TWO THINGS.
SO WHEN WE GO TO B SESSION ON A SELECT HIGH PROFILE, WE'RE GONNA GO AHEAD AND RE REVEAL THE RESPONDENT NAMES AT THAT POINT IN TIME.
SO THAT'LL GIVE YOU MORE TIME.
THE RESTRICTIONS OF COMMUNICATION WITH THE VENDOR STILL STAYS IN PLACE, BUT YOU WOULD, YOU WOULD SEE THE SCORING MA SIX MATRICES WITH THE RESPONDENT NAMES DURING B SESSION.
UH, AND THEN FOR THOSE GOING THROUGH THE AUDIT AND ACCOUNTABILITY, UH, UH, COMMITTEE WE TALKED ABOUT BEFORE, I THINK THE COMMITTEE FELT LIKE YOU ALL WANTED TO KEEP THE RESPONDENT NAMES OUT OF THE PROCESS.
SO WE'LL CONTINUE TO DO THAT, BUT RIGHT AFTER THE, UH, COMMITTEE APPROVES, OR IF ANY FRIDAY ITEMS THAT YOU APPROVE MOVING FORWARD TO THE FULL COUNCIL, WE'LL DISTRIBUTE A MEMO TO THE FULL COUNCIL SAYING THE AUDIT COMMITTEE TOOK ACTION, UH, TO MOVE THESE ITEMS FORWARD TO THE COUNCIL.
AT THAT POINT, WE'LL GO AHEAD AND RELEASE RESPONDENT NAMES.
SO NOW IT'S TIED TO, TO, UH, THAT, THAT PROCESS BEING COMPLETE, NOT, NOT THE POSTING.
WELL, IT, THE, THE RESTRICTIONS OF COMMUNICATION WITH THE VENDOR STILL STAYS IN PLACE UNTIL WE POST THE ITEM FOR ACTION.
BUT BOTH THROUGH THE B SESSION AND THE MEMO RIGHT AFTER AUDIT COMMITTEE, IT WOULD GIVE THE MAYOR AND COUNCIL, UM, THE RECOMMENDATION WITH THE RESPONDENT NAMES AND THE MATRICES.
SO YOU WOULD HAVE SOME ADDITIONAL TIME TO VISIT WITH STAFF ABOUT, UH, ANY CONCERNS OR ISSUES THAT YOU HAVE.
BUT THAT RESTRICTIONS OF THE COMMUNICATIONS WITH THE VENDOR STAYS IN PLACE 'CAUSE IT'S COMING OUT OF THE ETHICS CODE.
WELL, I, I, I THINK I'D, I'D STILL LIKE TO HAVE A CONVERSATION WITH E R B.
QUESTION I HAVE IS, WHEN WE'RE TALKING ABOUT THESE SELECT, UH, ISSUES COMING BEFORE COUNCIL, WILL THEY COME BEFORE COUNCIL PRES SOLICITATION AND THEN POSTS SOLICITATION? YES, SIR.
IT WOULD FOLLOW THE SAME PROCESS THAT WE DO AT THE AUDIT COMMITTEE.
SO IT'D BE A PRE AND POSTS SOLICITATION.
ANY OTHER COMMITTEE MEMBERS HAVE ANY QUESTIONS? YES, COMMITTEE MEMBER SETTLE.
UH, KEVIN, REAL QUICK, JUST ANOTHER QUESTION ON THE FIRST HANDOUT WITH THE GRADE OUT SECTIONS, WHAT IS THE CRITERIA THAT THOSE TWO WERE MEETING TO RISE TO THE LEVEL OF BEING CONSIDERED SELECT ITEMS? AS FAR AS THE DOCKLESS VEHICLES? YES.
BECAUSE, OR JUST AS FAR AS THE DOCKLESS VEHICLES, IT'S ESSENTIALLY GONNA BE THE FALLS INTO THAT HIGH COMMUNITY INTEREST.
AND THERE'S ALSO, UM, WHEN YOU LOOK BACK AT, I'LL GO BACK TO IT, IT'S GONNA BE THE HIGH COMMUNITY OR STAKEHOLDER IMPACT OR INTERESTS AND ALSO THE POLICY PUBLIC SAFETY IMPLICATIONS AROUND THE DOCKLESS VEHICLES.
AND THEN AS FAR AS THE CITY TOWER FOOD AND BEVERAGE CONCEPT, IT REALLY FALLS INTO THE POLICY, UM, WITH, WITH THE CITY COUNCIL AND ALSO THE, UM, IT'S PRIMARILY GONNA BE THAT ONE, GETTING THE POLICY INPUT.
'CAUSE SINCE IT'S REALLY A NEW VENTURE, AND THE CITY TOWER'S REALLY BEEN A HIGH FOCUS OF CITY COUNCIL IN THE PAST.
SO THEN IT'S UP TO THIS COMMITTEE TO RECOMMEND THIS FOR APPROVAL BY THE CITY COUNCIL AT W MEETING.
WHAT MEETING WOULD IT BE FOR THEM? UH, WELL, WE, WE WOULD HAVE TO, WE, WE, THERE'S NO, UM, NECESSARILY ANY ACTION.
I THINK WE WERE LOOKING FOR INPUT OR FEEDBACK ON KIND OF THE CATEGORIZATION.
BUT WE'LL BE, TROY WILL BE MAKING THIS PRESENTATION AT B SESSION TOMORROW WITH THE FULL COUNCIL ASKING FOR INPUT FROM THE FULL COUNCIL AS WELL.
AND PRIMARILY WE'RE FOCUSED ON, UM, THE CATEGORIZATION OF THE SOLICITATIONS.
YOU KNOW, THOSE THAT WE BELIEVE MEET THAT SELECT CRITERIA THAT YOU'D WANNA SEE AT A FULL B SESSION VERSUS THOSE THAT WOULD RUN THROUGH THE AUDIT COMMITTEE.
AND AGAIN, THOSE CAN CHANGE AS WE'RE, AS WE'RE MOVING FORWARD.
CLEARLY WITH THE AUDIT COMMITTEE, YOU KNOW, WHETHER YOU SEE SOMETHING ON CONSENT OR INDIVIDUAL, YOU CAN MOVE THOSE BASED ON OUTCOMES OR, OR, OR ISSUES THAT MAY COME UP DURING A SOLICITATION.
SO IT'LL JUST BE A BRIEFING FOR THE COUNCIL ALSO.
AND WE CAN PUT THIS ON THE AGENDA FOR NEXT MONTH, IF YOU'D LIKE TO GIVE US ADDITIONAL FEEDBACK ON THE AUDIT COMMITTEE ONES AS WELL, BETWEEN INDIVIDUAL AND CONSENT, WE CAN DO THAT AS WELL.
YOU KNOW WHAT, I, I WOULD THINK WE NEED A LITTLE BIT MORE TIME TO LOOK THIS OVER AND, AND OFFER ANY SUGGESTIONS, IF ANY.
AND PART OF THE PLAN IS, WE'LL MAKE SURE WE GET THIS OUT IN ADVANCE.
THIS WAS A LITTLE BIT OF A DIFFERENT PROCESS FOR US.
YOU KNOW, SELECT HIGH PROFILE DEFINITIONS OF THE CHANGES WE WERE GOING THROUGH.
BUT OUR GOAL WOULD BE TO GET THESE KINDS OF FORECASTS TO YOU MUCH IN ADVANCE OF THE, OF THE COMMITTEE MEETINGS SO THAT YOU'VE GOT TIME TO LOOK AT IT.
DID YOU HAVE ANOTHER QUESTION? THAT WAS JUST MY QUESTION.
AT THE TIMELINE WAS GONNA LOOK LIKE, SINCE WE ASKED ONE MORE TIME TO REVIEW.
[00:35:01]
OR COMMENTS? OKAY.IF NONE, THANK YOU VERY MUCH FOR EXPLAINING IT AND WE'LL LOOK AT IT SOME MORE AND OFFER ANY SUGGESTIONS IN THE FUTURE AND GOOD LUCK PRESENTING IT TO COUNCIL.
NEXT ITEM ON OUR AGENDA, ITEM NUMBER NINE.
AND WE'RE GONNA BE TALKING, UH, ABOUT, WELL, LET ME MAKE SURE I'VE GOT MY AGENDA RIGHT.
IT'S A AVIATION RENTAL CAR CONCESSION AGREEMENT.
IS THAT CORRECT? OH, WAIT, ITEM EIGHT, NO, ITEM EIGHT.
[8. 19-6396 AU19-018 Audit of NHSD Down Payment Assistance Programs]
ITEMS EIGHT, NINE, OR TWO FINAL AUDIT REPORTS TO PRESENT.THE FIRST ONE IS, UH, ITEM EIGHT IS ACTUALLY GONNA BE ON THE NEIGHBORHOOD HOUSING AND SERVICES DIVISION, UH, THE DOWN PAYMENT PROGRAM.
AND GABE WILL ACTUALLY WALK US THROUGH BOTH OF THESE.
BUT, UH, GABE WAS THE MANAGER ON THIS AUDIT, SO I'LL LET HIM GO AHEAD AND WALK US THROUGH THIS PRESENTATION.
OBJECTIVE OF THE AUDIT WAS TO DETERMINE IF THE DOWN PAYMENT ASSISTANCE PROGRAMS ARE MANAGED EFFECTIVELY AND, AND IN COMPLIANCE WITH POLICIES.
THE NEIGHBORHOOD SERVICES DEVELOP, UH, DEPARTMENT IS RESPONSIBLE FOR PROVIDING THE MANAGEMENT AND DELIVERY OF THESE THREE PROGRAMS, WHICH FOCUS ON HOME BUYING ASSISTANCE FOR CITY EMPLOYEES, FIRST RESPONDERS, AND THE GENERAL RESIDENTS OF SAN ANTONIO.
THE HOME OWNERSHIP PROGRAM FOR EMPLOYEES PROVIDES ASSISTANCE TO HOME BUYERS BY MAKING A 5,000 OR $10,000 ZERO INTEREST, NO PAYMENT LOAN, WHICH IS FORGIVEN OVER FIVE YEARS.
THE FIRST RESPONDERS HOME BUYER ASSISTANCE PROGRAM PROVIDES ASSISTANCE TO UNIFORM POLICE AND FIRE PERSONNEL BY MAKING 7,500 OR $15,000 ZERO INTEREST, NO PAYMENT LOAN, WHICH IS FORGIVEN, UH, OVER FIVE YEARS AS WELL.
THE THIRD PROGRAM, UH, HOME OWNERSHIP INCENTIVE PROGRAM PROVIDES ASSISTANCE TO QUALIFIED HOME BUYERS, UH, IN THE GENERAL PUBLIC BY LENDING BETWEEN 1000 AND $12,000 ZERO INTEREST, NO PAYMENT LOAN, WHICH IS FORGIVEN OVER A 10 YEAR PERIOD.
ALL OF THESE PROGRAMS HAVE A REQUIREMENT, UH, FOR THE HOME TO RESIDE IN SPECIFIC AREAS OF THE CITY.
OUR AUDIT SCOPE WAS FISCAL YEAR 2018.
UH, IN CONCLUSION, WE DETERMINED THAT THE DOWN PAYMENT ASSISTANCE PROGRAMS ARE BEING MANAGED EFFECTIVELY AND IN COMPLIANCE WITH POLICIES.
THE DEPARTMENT IS APPROPRIATELY EVALUATING PROGRAM APPLICANTS AND ISSUING THE AUTHORIZED FUNDS BASED ON PROGRAM POLICIES.
HOWEVER, THERE ARE OPPORTUNITIES TO STRENGTHEN THE CONTROLS ASSOCIATED WITH RECOGNIZING WHEN ENROLLED PERSONNEL SEPARATE FROM THE CITY ACCOUNTING FOR THE RECOUPMENT OF UNFORGIVEN FUNDS OF THOSE SEPARATED EMPLOYEES AND SECURING THE ELECTRONIC LOAN FILES.
UM, THE DEPARTMENT HAS AGREED WITH THE AUDIT FINDINGS AND HAS, UH, DEVELOPED POSITIVE ACTION PLANS TO ADDRESS THESE ISSUES.
UH, THEY'RE HERE TO ANSWER ANY QUESTIONS.
THAT CONCLUDES MY PRESENTATION.
UH, YOU KNOW, WHEN WE START TALKING ABOUT, UH, HOME ASSISTANCE PROGRAMS IS SOMETHING WE NE NEED TO PAY ANY, UH, CAREFUL ATTENTION TO.
I DID NOT NOTE ANYTHING, UH, SIGNIFICANT WHEN I READ OVER THIS EARLIER.
I THINK THAT THE PROGRAM'S FUNCTIONING WELL.
UH, DO ANY COMMITTEE MEMBERS HAVE ANY QUESTIONS OR CONCERNS ABOUT THIS? ANY OTHER COMMENTS THAT ANYBODY WOULD LIKE TO MAKE? YES, COUNCILWOMAN.
THANK YOU, COUNCILMAN COURAGE.
I WAS JUST, AND I SPOKE WITH KEVIN ABOUT THIS, BUT I JUST WANTED TO GO ON THE RECORD SAYING THIS.
AND I DID MENTION THIS AT, AT ONE OF THE SESSIONS THAT WE HAD FOR BUDGET PURPOSES.
UM, I DON'T KNOW EXACTLY WHAT, WHAT THE NATURE OF THE AUDITOR, I KNOW THAT KEVIN PROPOSES, BUT I ALSO WANTED TO CONSIDER SOME, UM, MARKETING, UH, TO LOOK AT THE MARKETING OF THE PROGRAMS AS WELL, UH, AS PART OF IT, BECAUSE I DO FEEL THAT SOME OF THE MOST, UH, NEED OR THE NEEDIEST EMPLOYEES OF THE CITY MIGHT NOT BE TAKING ADVANTAGE OF THIS PROGRAM.
AND I HIGHLY BELIEVE THAT IT MIGHT BE BECAUSE IT'S NOT BEING MARKETED PROPERLY TO THEM SPECIFICALLY.
I DON'T KNOW THAT THE AUDITS, ANY FUTURE AUDITS WOULD TAKE THAT INTO CONSIDERATION JUST IN GENERAL WITH ANY PROGRAM, NOT JUST WITH THIS ONE.
BUT THIS ONE JUST REMINDED ME, AND I DID HAVE THE CONVERSATION WITH KEVIN, AND I'M COMPLETELY COMFORTABLE WITH, WITH THE FINDINGS AND, UM, ON THE RECOMMENDATIONS OF, OF AUDIT.
BUT I JUST WANTED TO GO ON THE RECORD PUBLICLY SAYING THAT I DO THINK THAT, UM, MARKETING NEEDS TO BE ADDRESSED IN SOME OF THESE PROGRAMS, SPECIFICALLY TO, UM, EMPLOYEES THAT DON'T HAVE ACCESS TO EMAIL OR THAT, UM, MAY NOT HAVE THE COMMUNICATION THAT WE ASSUME WE STILL HAVE TO CONSIDER THAT THE DIGITAL ALIVE DIVIDE IS ALIVE AND WELL, UNFORTUNATELY, ESPECIALLY IN MY DISTRICT.
AND THEN, UH, TO THE MARKETING AS, UH, DR.
GARCIA SAID, WE DID NOT LOOK AT THE MARKETING, THE AUDIT SCOPE BEGAN WHEN, UH, A PERSON APPLIES FOR THE PROGRAM, EITHER ONE OF THE THREE PROGRAMS, AND IF THEY WERE, UH, ACCEPTED OR REJECTED TO UNDERSTAND THAT, THAT IT WAS APPROPRIATE AND THE PROPER DOCUMENTATION.
AND THEN FOLLOWING THE PROCESS ALL THE WAY THROUGH AS THE RECOMMENDATIONS INDICATED WITH SECURITY.
[00:40:01]
THE, UM, UM, THE OTHER, THE OTHER PIECES OF, OF THE RECOMMENDATION, I MEAN, FOLLOWING THAT PROCESS THROUGH.BUT, UH, MIKE IS HERE AND HE CAN CERTAINLY TALK ABOUT THE MARKETING THAT DOES GO ON.
I MEAN, WHILE WE DIDN'T LOOK AT IT, THAT DOESN'T MEAN THE MARKETING DOES NOT EXIST.
THANK, I THINK THEY DO A LOT OF WORK.
THANK VERY MUCH COUNCILWOMAN, UH, FOR BRINGING THAT UP.
UH, MARKETING IS ALWAYS AT THE FOREFRONT OF OUR EFFORTS, AND WE ARE, FOR THIS PARTICULAR PROGRAM, WE ARE WORKING CLOSELY WITH HR TO, UM, MARKET THE PROGRAM TO CITY EMPLOYEES.
SO CURRENTLY THEY ADVERTISE THE PROGRAM THROUGH THE E CONNECTION NEWSLETTER.
IT'S A NEWSLETTER THAT GOES TO ALL CITY EMPLOYEES.
THEY ALSO MARKET THE PROGRAM, AND WE ATTEND, UH, THROUGH THE EMPLOYEE ORIENTATIONS.
SO, SO, YEAH, SO WE CAN ALWAYS DO BETTER.
SO WE ALWAYS WORKING HARD TO MARKET THE PROGRAM.
BUT THANK YOU, UH, AGAIN FOR THE, UH, QUESTIONS.
AND I APPRECIATE THAT BECAUSE I'VE, AS YOU ALL KNOW, HAVE DONE SEVERAL RIDE-ALONGS AND THE FOLKS THAT I'VE DONE RIDE-ALONGS WITH DO NOT HAVE ACCESS TO EMAIL.
SO I'VE LITERALLY, INSTEAD OF BEING ABLE TO SEND THEM EVEN A THANK YOU EMAIL, I HAVEN'T BEEN ABLE TO, I'VE WRITTEN THEM HANDWRITTEN THANK YOU NOTES BECAUSE THEY DON'T HAVE ACCESS TO EMAIL.
SO IF WE'RE ONLY PROMOTING ANY CONNECTIONS, THEN WE MIGHT BE, UM, MISSING A DEMOGRAPHIC THAT REALLY NEEDS THE HELP.
IF I MAY, UH, IF I MAY ADD INITIALLY, UM, WHEN THE PROGRAM WAS LAUNCHED, THE HOPE PROGRAM, WE DID PRESENTATIONS WITH SOLIDLY.
SO WE JUST NEED TO REVISIT THAT GETTING OUT TO THOSE DEPARTMENTS.
YOU'RE EXACTLY RIGHT THAT NOT EVERYBODY HAS ACCESS TO EMAIL.
I KNOW HR IS COORDINATED TO SEND TEXT MESSAGES FOR THOSE WHO DON'T HAVE ACCESS, BUT WE CAN DEFINITELY, YOU KNOW, RAMP UP THOSE EFFORTS AGAIN AND INITIATE THOSE THINGS WE DID WHEN THE PROGRAM FIRST LAUNCHED.
ANY OTHER COMMENTS, CONCERNS ABOUT IT? OKAY, VERY GOOD.
THEN, UH, THEN ACTION IS TO JUST ACCEPT THE, THE REPORT.
AND SECOND, IT ALL IN FAVOR SAY AYE.
[9. 19-6397 AU19-004 Audit of Aviation Rental Car Concession Agreements]
NOW WE'LL MOVE ON TO THE AIRPORT.SORRY, RUSS, TO MOVE YOU AROUND
SO, AGAIN, AN AUDIT, UH, THAT WE DID OF THE AVIATION RENTAL CAR CONCESSIONS, UH, UH, AGREEMENT, A A BIG PART OF OUR AIRPORT OPERATIONS AND, AND CUSTOMER SERVICE.
AND, UH, GABE WILL ALSO WALK US THROUGH THIS, UH, THROUGH THIS AUDIT AND THE RESULTS.
SO THE OBJECTIVE, OBJECTIVE OF THIS AUDIT WAS TO DETERMINE IF AVIATION RENTAL, CAR CONCESSION AGREEMENTS, OR ADEQUATELY MANAGED AND CITY CONCESSION RECEIPTS ARE ACCURATE.
THE AIRPORT CONTRACTS WITH EIGHT DIFFERENT ENTITIES TO PROVIDE ONSITE RENTAL CAR SERVICES TO CUSTOMERS.
ACCORDING TO THE AGREEMENTS, RENTAL CAR COMPANIES MUST PAY CITY RENTAL CAR CONCESSION REVENUE.
THIS REVENUE IS MADE UP OF THREE COMPONENTS, GROUND RENT, WHICH IS $1 FOOT LEASED MINIMUM ANNUAL GUARANTEED PAYMENTS, AND 10% OF THE COMPANY'S GROSS REVENUE EARNED AT THE AIRPORT.
UM, IN FISCAL YEAR 2018, THE AIRPORT RECEIVED, UH, ABOUT 11 AND A HALF MILLION DOLLARS IN REVENUE, WHICH IS APPROXIMATELY 11% OF THEIR TOTAL OPERATING REVENUE FOR THE YEAR.
OUR AUDIT SCOPE INCLUDED ALL RENTAL CARD CONCESSION AGREEMENTS AND CONCESSION REVENUE RECEIVED DURING THE FISCAL YEAR OF 2018.
IN CONCLUSION, WE DETERMINED THAT THE CONTROLS NEED IMPROVEMENT TO ENSURE THAT THE AGREEMENTS ARE PROPERLY MANAGED THAT ARE IN COMPLIANCE WITH CONTRACT TERMS. WE RECOMMENDED THAT THE AVIATION DEPARTMENT DEVELOP CONTRACT ADMISSION ADMINISTRATION PLANS TO ENSURE THAT THERE ARE PERIODIC REVIEWS AND MONITORING, UM, OF THE CONTRACTS.
ADDITIONALLY, IN ENFORCE CONTRACT TERMS, REQUIRING COMPANIES TO PROVIDE TIMELY ANNUAL STATEMENTS THAT ARE CERTIFIED BY INDEPENDENT THIRD PARTY, ENSURING THAT ALL GROSS REVENUES HAVE BEEN ACCURATELY REPORTED TO THE CITY.
AND FINALLY, INCREASE THE NUMBER OF COMPLIANCE AUDITS PERFORMED ON AN ANNUAL BASIS.
THE DEPARTMENT AGREED WITH OUR FINDINGS AND HAS DEVELOPED POSITIVE ACTION PLANS.
THAT CONCLUDES MY PRESENTATION.
HOW, HOW HAVE WE ENSURE IN THE PAST THAT, UH, THE CONCESSIONARIES HAVE BEEN PAYING PROPERLY? SO THIS WAS A GOOD AUDIT.
THIS WAS A, UH, REALLY GOOD AUDIT AND IDENTIFIED BOTH A COUPLE OF ORGANIZATIONAL, UH, FLAWS THAT WE NEEDED TO WORK ON, AS WELL AS SOME PROCESS, UH, IMPROVEMENTS.
UM, WE'VE ALWAYS HAD PROCEDURES AND CHECKLISTS IN PLACE.
IT WASN'T FORMALLY DOCUMENTED.
AND WE'VE SEEN THIS, I THINK, ACROSS THE CITY WHERE WE NEED TO WORK ON OUR CONTRACT ADMINISTRATION PLANS.
WE, WE, UH, WE MOVED OUT ON FORMALLY DOCUMENTING THEM IN THAT FORMAT, AND THAT'LL HELP PROVIDE RIGOR AND DISCIPLINE MOVING FORWARD.
WE ALSO HAD AN INDIVIDUAL, UH, LEAVE THE CITY.
UM, AND, AND SO WE HAD A GAP IN COVERAGE OF THAT POSITION, AND SHE, UNFORTUNATELY WAS ALL OVER, UH, THIS.
AND SO WE ALLOWED OURSELVES TO GET A LITTLE BIT BEHIND 'CAUSE WE DIDN'T HAVE HER APPROPRIATELY BACKED UP.
WE ALSO REALIZED THAT WE, THERE ARE RESOURCES IN PLACE TO BE ABLE TO GET MORE OF OUR PROPERTIES AND CONCESSIONS, UH, PERSONNEL AWARE
[00:45:01]
OF THIS.SO EVERYBODY'S ON THE SAME TEAM.
UH, AND SO WE INSTITUTED A COUPLE OF SOFTWARE SOLUTIONS.
ONE IS CALLED C O I, IT'S A CERTIFICATE OF INSURANCE.
IT'S ACTUALLY A WEB-BASED COMPANY, UH, THAT YOU, THAT WE CONTRACT WITH AT A, AT A, YOU KNOW, REASONABLE RATE.
THAT ESSENTIALLY OUR INSURANCE PROFESSIONALS THAT, THAT MONITOR ALL THE INSURANCE POLICIES, COMMUNICATE DIRECTLY WITH THE RENTAL CAR COMPANIES, AND THEN PARTNER WITH US TO MONITOR THAT.
AND EVERYBODY ON THE PROPERTIES TEAM IS, IS LINKED INTO THAT.
AND SO WE HAVE FULL SITUATIONAL AWARENESS, WHICH, UH, HOPEFULLY WILL ELIMINATE THAT INSURANCE ISSUE EVER TO HAPPEN AGAIN.
WE ALSO ALREADY HAD A, UH, A SOFTWARE MANAGEMENT SYSTEM, PROGRAM MANAGEMENT, UH, INFORMATION SYSTEM THAT HAD SOME CAPABILITIES WE WEREN'T FULLY UTILIZING, SUCH AS REMINDER, UH, UH, WHAT THEY CALL TICKLERS, UH, TO COME IN AND HELP US KEEP UP WITH THE FREQUENCY OF, UH, OF CHECKS AND BALANCES THAT WE NEEDED TO, UH, ESTABLISH.
AND SO WE'VE PUT THOSE IN PLACE AS WELL.
AND SO KEY MEMBERS OF THE PROPERTIES TEAM, NOT JUST THE ONE INDIVIDUAL BUT KEY MEMBERS OF THE PROPERTIES TEAM, CAN MONITOR ALL OF THAT ACTIVITY AND ENSURE THAT WE DON'T GET BEHIND ON IT IN THE FUTURE.
AND SO, UH, WE'VE INSTITUTED ALL OF THOSE, UH, AS WELL AS, UM, THE COMPLIANCE AUDITS.
UH, BASED ON THE RECOMMENDATION, WE'VE IN, UH, TRIPLED THAT FREQUENCY.
WE'RE GONNA DO THREE COMPLIANCE AUDITS A YEAR.
UH, WE DIDN'T GET ANY ADDITIONAL MANPOWER AND, AND, UH, AUDITS, UH, TEAM WAS REALLY GOOD ABOUT SAYING, YOU ARE MAXED OUT.
YOU, YOU KNOW, YOU DON'T HAVE ENOUGH TO TRIPLE THAT, UH, AT THE CURRENT, UH, SCOPE.
AND SO WHAT WE'VE DONE IS WE'VE LOOKED AT PAST PERFORMANCE OF COMPANIES AND WE'VE REDUCED THE SCOPE OF THE AUDIT, BUT INCREASED THE FREQUENCY.
AND THEN WE'VE ESTABLISHED A SERIES OF, UH, DISCREPANCY LIMITS.
SO IF IT'S A, IT'S A SHORTER AUDIT, LESS SCOPE, BUT IF WE SEE A DISCREPANCY RATE ABOVE A CERTAIN PERCENTAGE, THEN WE, THEN WE PAUSE AND WE DO A MORE IN-DEPTH AUDIT TO INCLUDE PERHAPS, UH, BRING IN A THIRD PARTY AUDITOR.
AND THEN THERE'S A, A SERIES OF CHECKS AND BALANCES WITHIN THE CONTRACT THAT ALLOW US, IF THE DISCREPANCY RATE AT THAT POINT IS HIGHER, WE CAN ACTUALLY CHARGE THE RENTAL CAR COMPANY FOR THE AUDIT.
SO IN ADDITION TO MAN MANDATING COMPLIANCE, WE'LL CHARGE 'EM FOR THE AUDIT.
AND SO THAT KIND OF TAKES CARE OF THE FINAL FINDING.
AND SO I'M CONFIDENT WE'VE GOT A, A WAY AHEAD IN PLACE.
WELL, I'M GLAD TO HEAR THAT WE'VE DEVELOPED, UH, YOU KNOW, THE REMEDIES THAT WE NEED.
IT'S A LITTLE CONCERNING THAT BUILDING CONRAD AND UNDERSTANDING WHAT WE WERE CREATING, THAT WE WOULDN'T HAVE BEEN ON TOP OF THAT FROM THE VERY BEGINNING.
UH, BUT I'M GLAD TO HEAR THAT.
NEXT AUDIT SHOULD SHOW, WE'RE REALLY MAKING SURE THAT EVERYBODY'S ACCOUNTABLE, UH, AS PART OF THAT PROGRAM.
SO ANY OTHER QUESTIONS FROM ANY OF THE COUNCIL MEMBERS? YES, THANK YOU CHAIR.
UH, RUSS, JUST REALLY QUICK, WHAT ARE THE FEES IF THEY DON'T, UM, PROVIDE, FOR INSTANCE, THE ANNUAL STATEMENTS BY DEADLINE? HUNDRED A MONTH, A HUNDRED DOLLARS A MONTH, A HUNDRED DOLLARS A MONTH.
UM, AND THEN JUST IN GENERAL, AND I DON'T KNOW WHO IT WOULD BE IF IT WOULD BE, UH, BEN OR TROY OR KEVIN TO ANSWER, ARE WE DOING SOMETHING SIMILAR LIKE THE CONTRACT ADMINISTRATION PLAN? DOES EVERY DEPARTMENT HAVE ONE? THE, UH, ADMINISTRATIVE DIRECTIVES CALLS FOR, IF YOU HAVE A, IF YOU'RE MANAGING CONTRACTS, YOU HAVE A CONTRACT ADMINISTRATION PLAN, WHICH IS SIMPLY, IT COULD BE A CHECKLIST, IT COULD BE A BINDER DEPENDING ON THE SIGNIFICANCE OF THE CONTRACT.
BUT THAT IS REQUIRED PER, UH, PER AD.
BUT IT DOESN'T SEEM LIKE IT'S CONSISTENT.
LIKE THEY'RE, I MEAN, THE AVIATION DEPARTMENT HAS THEIR OWN AND SOLID WASTE HAS THEIR OWN, THERE'S NO CONSISTENCY.
IN LAST YEAR'S ADOPTED BUDGET, WE ACTUALLY PUT TOGETHER A TEAM OF INDIVIDUALS WITHIN THE FINANCE DEPARTMENT THAT ARE GOING TO CONCENTRATE ON CONTRACT COMPLIANCE.
WE ARE ALSO EXPANDING UPON THE AD AS FAR AS CONTRACT COMPLIANCE TO ACTUALLY GENERATE THAT CONSISTENCY AND STANDARDIZATION ACROSS THE CITY ON, YOU KNOW, HOW A CAP IS, UM, DEVELOPED AND WHEN A CAP SHOULD BE DEVELOPED.
AND WE'RE ALSO GOING TO BE APPOINTING KEY INDIVIDUALS WITHIN THOSE DEPARTMENTS THAT ARE RESPONSIBLE FOR THOSE CONTRACTS.
JUST BECAUSE I WAS WORRIED ABOUT THE CONSISTENCY, AND I WAS WONDERING IF WHEN WE HAVE THAT, IF WE HAVE A TIMELINE ON OF WHEN THAT NEEDS TO HAPPEN BY AND IF WE COULD POSSIBLY SEE THAT ALL OF THE DEPART DEPARTMENTS, I DON'T KNOW IF IT'S AN AUDIT OF THE CONTRACT, UM, UH, ADMIN PLAN OR SOMETHING.
I JUST, AGAIN, I'M, I'M WORRIED ABOUT THE CONSISTENCY, RIGHT, AND TO THE CONSISTENCY.
AND WE SEE THAT AS WE AUDIT, YOU KNOW, WE'RE, WE'RE AUDITING ACROSS THE CITY, UH, YOU KNOW, AND, AND YOU SAID THE CAP PLANS ARE NOT ALL THE SAME.
WELL, THEY, THEY'RE NOT GOING TO BE THE SAME BECAUSE EACH CONTRACT IS DIFFERENT FROM A COMPLEXITY PERSPECTIVE, FROM A DOLLAR VALUE PERSPECTIVE, AND EVEN TRANSACTION, I MEAN, IT ALL ROSE INTO IT.
UH, WE HAVE COME ACROSS AREAS WHERE THEY TECHNICALLY DID NOT HAVE A FORMAL CAP, BUT THEY WERE DOING A WONDERFUL JOB IN MANAGING THAT CONTRACT, AND WE'RE GONNA CERTAINLY GIVE 'EM THE CREDIT FOR DOING THEIR JOB.
UH, AND THEY HAVE THEIR OWN DOCUMENTATION, AS TROY SAID, WITH THE, THE NEW GROUP IN FINANCE.
UH, WE'RE GONNA BE WORKING ON MAKING THE DOCUMENTATION CONSISTENT, UH, WHICH HELPS WITH THE COMPLIANCE, THEREFORE, OF, OF THAT PROCESS.
UH, WE'VE WORKED CLOSELY WITH, WITH TROY'S GROUP, UH, IN THIS AREA.
[00:50:01]
AND WE'LL CONTINUE TO WORK, IN FACT, NOT ON THIS YEAR BECAUSE THEY'RE JUST ROLLING THIS OUT ON OUR 2021 AUDIT PLAN.YOU WILL SEE AN AUDIT PROBABLY OF AUDITING THAT PROCESS.
SO WE'RE GONNA AUDIT THE AUDITOR, UH, FROM THAT, FROM THAT PERSPECTIVE.
BUT THE FIRST SIX MONTHS RIGHT NOW IS GONNA BE EDUCATION.
AND THEN THEY'LL START DOING MORE OF THE, THE COMPLIANCE RESEARCH.
AND I IMAGINE WE HAVE BEST PRACTICES WITHIN THE CITY.
AND SO I'D LOVE FOR, YOU KNOW, WE DO PEOPLE TO SHARE THAT.
ANY OTHER COUNCIL MEMBERS HAVE QUESTIONS? OKAY, HEARING NONE THEN, UM, I'LL ACCEPT THE MOTION TO, UH, ACCEPT THIS AUDIT.
MAID AND SECONDED TO ACCEPT THE AUDIT.
CAN I MENTION ONE OTHER, UM, ITEM RELATED TO ITEM NUMBER SEVEN ON THE HIGH PROFILE FORECAST THAT WE DIDN'T MENTION? OKAY.
AND THAT WAS THAT THE, UH, TICKETING SERVICES AGREEMENT FOR CONVENTION, SPORTS AND, UH, FACILITIES, UH, CAME TO THE AUDIT COMMITTEE LAST MONTH, AND Y'ALL MOVED IT FORWARD TO THE FULL COUNCIL.
WE DID SCHEDULE, IT'S ONE OF THOSE ITEMS THAT WAS IN TRANSITION.
WE FELT LIKE IT WAS A SIGNIFICANT ITEM.
WE SCHEDULED THAT FOR B SESSION FOR TOMORROW AS WELL.
SO TROY WILL MAKE A PRESENTATION ABOUT THE HIGH PROFILE FORECAST AS HE DID TODAY.
THE SECOND ITEM ON B SESSION, TOMORROW WE'LL BE TO TALK ABOUT THAT TICKETING SERVICES AGREEMENT.
AND IT'S SCHEDULED FOR AGENDA, UH, FOR YOUR CONSIDERATION FOR APPROVAL ON THURSDAY.
UH, NOW WE HAVE TWO POST SOLICITATION, HIGH PROFILE BRIEFINGS.
[10. 19-6817 Airfield Improvements, Package 6 [Carlos Contreras, Assistant City Manager; Russell Handy, Director, Aviation]]
NUMBER 10, AIRFIELD IMPROVEMENT PACKAGE NUMBER SIX.THIS IS A POSTAL STATION BRIEFING FOR, UH, AIRFIELD IMPROVEMENTS PACKAGE SIX, AS YOU RECALL, I THE SAME WAY A NUMBER OF YEARS AGO, BASED ON A VERY DETAILED PAVEMENT STUDY, UH, ACROSS THE AIRPORT, WE DEVELOPED A MULTI-PHASE PLAN TO ENSURE THAT OUR AIRPORT HAD CONTINUITY OF OPERATIONS.
THIS IS SIX OF SEVEN, UH, OF THOSE, UH, IMPROVEMENTS.
AND IN FACT, THIS ONE IS ACTUALLY PARTIALLY TIED, UH, TO THE SEVENTH AS WELL.
AND I HAVE A, A BRIEFING TO PRESENT IF YOU'D LIKE TO SEE IT.
SO THIS IS A THREE PART PLAN FOR PACKAGE SIX.
UM, THE, UH, IT INVOLVES THE INSTALLATION OF A DUCT BANK AND NEW FIBER.
SO UPGRADED CONNECTIVITY FOR THE F A A.
UH, AND YOU'LL SEE A PICTURE HERE IN JUST A SECOND.
IT'S ACROSS THE ENTIRE, UH, AIRPORT BOUNDARY, FAIRLY LARGE PROJECT, UH, FOR THE F A A.
UM, IT ALSO INVOLVES REMOVAL AND RELOCATION OF A TAXIWAY, UH, TO MEET FEDERAL STANDARDS.
IT'S A TAXIWAY THAT'S BEEN POSITIONED AND, AND, AND A DIMENSION TO WHICH DOES NOT MEET CURRENT FEDERAL STANDARDS.
UH, AND IT'S A, UH, BYPASS TAXIWAY TO BE ABLE TO MAINTAIN CONTINUITY OF OPERATION ON THE AIRFIELD.
WHEN WE TAKE ON PACKAGE SEVEN, UH, WHICH I'LL SHOW YOU IN A MINUTE, IS A MAJOR OVERHAUL OF ANOTHER TAXIWAY, UH, THAT HAS MUNICIPAL SOLID WASTE UNDERNEATH IT FROM DECADES AGO.
UH, AND THAT TAXIWAY IS FAILING.
AND SO THIS, UH, PREPARES US TO DO THAT.
THIS IS A BIG PARTNERSHIP WITH THE F A A.
IN FACT, I JUST SIGNED OFF ON THE GRANT, SO I'M EXCITED TO ANNOUNCE THAT THIS WEEK, UH, THEY'VE ALREADY AGREED TO THE GRANT, UH, TO PAY FOR 75% OF THE ELIGIBLE EXPENSES FOR THE, UH, FOR THE WHOLE PROJECT.
SO EVERY NUMBER YOU SEE ESSENTIALLY IS THE TOTAL OF THE F A A WILL PICK UP 75% OF THAT, UH, FOR AIRPORT IMPROVEMENT PROGRAM, UH, GRANT FUNDS.
THIS PROJECT, UH, WILL NOTICE TO PROCEED SOMETIME AROUND NOVEMBER AND WILL BE COMPLETED BY THE FALL OF 2020.
SO HERE YOU SEE, UH, TWO PICTURES.
THE FIRST ONE WILL SHOW PART OF THAT DUCK BANK, SO THAT RED SHADOWED AREA.
UM, THE F A A HAS CABLE THAT SURROUNDS THE ENTIRE AIRPORT, THAT, THAT POWERS ALL OF THEIR SYSTEMS, WHETHER IT BE CAMERAS, UH, APPROACH LIGHTING APPROACH SYSTEMS, UH, INSTRUMENT LANDING SYSTEM.
UH, AND THIS UPGRADES THAT TO FIBER AND PROVIDES A NEW DUCK BANK, UH, FOR CONTINUITY, UH, FOR ANOTHER SEVERAL DECADES.
UH, THIS ADDITIONALLY SHOWS THAT TAXIWAY ECHO, UH, THE EXISTING TAXIWAY IS IN GREEN AND IT'S ESSENTIALLY IN A HIGH TRAFFIC AREA OF THE RUNWAY OR INTERSECTS OF THE RUNWAY IN A HIGH TRAFFIC AREA.
UH, THAT'S NOW PROHIBITED BY NEW F A A STANDARDS.
AND IT ACTUALLY IS TOO NARROW FOR THE CATEGORY OF CORPORATE AIRCRAFT THAT ARE COMING OFF OF THAT RAMP.
UH, IF YOU SEE, THIS IS OVER THERE ON THE EAST SIDE OF THE AIRFIELD.
SO RIGHT ON WETMORE, WE'RE A MILLIONAIRE AND HALLMARK, UH, AND, UH, OTHER CORPORATE AND GENERAL AVIATION TENANTS ARE LOCATED.
FINALLY, TAXIWAY, UH, ROMEO CHARLIE BYPASS IS THE BLUE AREA.
THAT IS WHAT'S BEING TAKEN ON IN PACKAGE SIX.
THAT IS TO MAINTAIN CONTINUITY OF OPERATION ON THE NORTH END OF THE AIRFIELD FOR OUR, FOR THREE LARGE CORPORATE TENANTS.
UM, SO ONCE THAT IS BUILT AS PART OF PACKAGE SIX, WE CAN INITIATE PACKAGE SEVEN, UH, WHICH INCLUDES THAT GREEN SHADED AREA.
THAT'S A, A TAXIWAY ROMEO CONNECTOR.
[00:55:01]
VERY SIMILAR TO A PROJECT WE DID IN PACKAGE FIVE, UH, WHERE WE HAD A FAILING TAXIWAY, BOTH DUE TO AGE OF PAVEMENT AND ALSO SETTLING OF THE GROUND UNDERNEATH IT DUE TO MUNICIPAL SOLID WASTE, UH, DECADES AGO.THAT WAS A DUMP AND WE PUT TRASH OUT THERE.
AND SO NOW THAT'S FA THAT'S FAILING.
SO THAT'S A FAIRLY LARGE PROJECT.
IF WE WERE NOT, IF WE DID NOT EXECUTE THE BYPASS, UH, THAT WOULD ESSENTIALLY CLOSE OFF ACCESS TO THAT WHOLE PART OF THE AIRFIELD, WHICH BY F A A STANDARDS IS, IS A NON-STARTER.
SO THAT'S WHY THEY'RE PARTNERING WITH US ON THIS.
UH, OUR EVALUATION TEAM WENT THROUGH TWO PHASES OF EVALUATION.
ONE, UH, LOOKED AT PROPOSALS AND BROUGHT IN, UH, TWO FOR INTERVIEWS.
YOU SEE THE FIRM'S NUMBERED THERE.
ONE, UH, THROUGH FOUR, WHICH ARE ALSO THE, UH, NUMBER OF THE, THE SCORES ESSENTIALLY, UM, OF THE FOUR TWO STOOD OUT, UH, AS SUPERIOR FOR BACKGROUND, QUALIFICATIONS AND PLAN.
UH, AND YOU CAN SEE THERE THAT, UH, THEY ALL MET D B E ONE JUST A LITTLE BIT LESS THAN THE OTHERS, AND THERE WAS SLIGHT DISCREPANCY IN PRICE, BUT, BUT MAINLY E B Q AND PLAN IS WHERE THE DISTINCTION WAS MADE.
AND THEN FINALLY, THOSE TWO, TOP TWO WERE BROUGHT IN FOR AN INTERVIEW.
UH, AND OF THOSE TWO, ONE WAS CLEARLY SUPERIOR.
THE, THE SECOND FIRM HAD HAD ISSUES BOTH IN THEIR PLAN AND THEIR, UH, EXPERIENCE AND HOW THEY PRESENTED IT.
THEY, UM, WERE MISSING MAJOR COMPONENTS.
UH, A VERY DISCIPLINED SAFETY PLAN WAS MISSING FROM THE PACKAGE.
UH, THEY DIDN'T REALLY ANSWER THE QUESTIONS ADEQUATELY ON HOW THEY WERE GONNA PERFORM THIS COMPLEX WORK.
UH, SO THE INTERVIEW WAS, WAS WORTH THE TIME.
UH, AND THE NUMBER ONE FIRM CLEARLY STOOD OUT.
SO A COUPLE OF THOUSAND VENDORS NOTIFIED, UH, FIVE WERE AT THE PRE-SUBMIT, AND THEN FOUR OF THEM SUBMITTED PROPOSALS, AND DUE DILIGENCE WAS DONE WITH NO FINDINGS.
SO WE'RE RECOMMENDING THIS POST SOLICITATION, UH, NOW, UH, GO FORWARD WITH AFFIRM NUMBER ONE.
UH, IF I LOOK AT THE TWO EVALUATIONS, THE INITIAL EVALUATION HAD FIRM NUMBER ONE, BUT THE RECOMMENDED AWARD IS A HIGHER VALUE FOR FIRM NUMBER TWO.
AND THAT THIS SPEAKS TO THE VALUE OF AN INTERVIEW.
SO THE PACKAGES READ DIFFERENTLY THAN THEY CAME OUT IN THE INTERVIEW.
AND AS I SAID, THEY, WHEN WE PICK A COUPLE OF RESPONDENTS FOR INTERVIEWS, WE WILL TYPICALLY NOT ONLY CALL THEM IN FOR INTERVIEWS, BUT WE'LL PROVIDE THEM THE TYPES OF QUESTIONS THAT WE WANT THEM TO ANSWER IN THEIR BRIEFING.
AND THE FIRM THAT SCORED HIGHEST FOR THEIR, FOR THEIR PACKAGE, WHICH WAS, WAS A, YOU KNOW, IT WAS, IT WAS A NICE PACKAGE.
UH, IT WAS A LITTLE BIT FLASHIER, BUT A LITTLE BIT MORE OF A BOILER PLATE.
AND SO PART OF THE INTERVIEW PROCESS IS LET'S DIG DOWN INTO SOME OF THESE MORE GENERAL STATEMENTS AND ENSURE THAT THEY REALLY DO HAVE THE BACKGROUND, UH, TO DO THE JOB.
AND WHEN THEY CAME FORWARD IN THE INTERVIEW, UM, THE FIRM, THE FIRM THAT WAS NUMBER TWO INITIALLY, THAT EVENTUALLY WERE RECOMMENDING FOR AWARD, DID A FANTASTIC JOB OF GOING THROUGH AND ANSWERING ALL OF THE QUESTIONS THAT THE EVALUATION TEAM MEMBERS HAD.
UH, THE OTHER FIRM DIDN'T ADDRESS ANY OF THE QUESTIONS.
AND SO THE INTERVIEWERS, THE EVALUATION COMMITTEE, DUG INTO THOSE QUESTIONS.
AND IN MANY CASES, THEY DID NOT HAVE ADEQUATE ANSWERS.
AND IN FACT, ONE SAID, WELL, I'M REALLY NOT THE EXPERT IN THAT AREA.
UM, WHICH, WHICH GAVE THE, UH, EVALUATION COMMITTEE A REALLY BAD SENSE OF THEIR ABILITY TO DO THE JOB.
AND, UM, WHEN THEY WERE QUESTIONED ABOUT THEIR SAFETY PLAN, THEY SAID, WELL, IT'S IN OUR OFFICE.
AND, AND THEY KIND OF STOPPED AT THAT.
AND SO THERE WERE MAJOR ISSUES THAT CAME OUT IN THE INTERVIEW THAT, THE PLAN THAT, THAT THE PAPER DIDN'T SHOW.
SO YOUR RECOMMENDATION IS FIRM NUMBER TWO? CORRECT.
YOU HAD SAID ONE, AND THAT'S WHY.
WE, WE, THIS IS THE FIRST TIME WE'VE PRESENTED BOTH, UH, INTER BOTH INTERVIEWING.
BUT I'M GLAD YOU DID BECAUSE A LOT OF TIMES AFTER THE FACT WE GET CALLS THAT SAY, YOU KNOW, WE WERE THE BEST AND ALL OF A SUDDEN WE WERE THE WORST.
AND SO I THINK, YOU KNOW, THAT'S WHAT WE HAD SAID EARLIER, UH, THIS YEAR, THAT WE REALLY WANTED TO LOOK AT THE ORIGINAL AND THE, THE FINAL SO THAT WE CAN TALK ABOUT WHY THINGS MIGHT'VE DRASTICALLY CHANGED THE WAY I THINK THIS IS A GREAT EXAMPLE AS TO WHY THAT'S A GOOD IDEA.
I MEAN, THE INTERVIEW REALLY BROUGHT OUT THE TRUTH.
WELL THEN I DON'T HAVE ANY OTHER QUESTIONS.
ANY OTHER COMMITTEE MEMBERS? YES.
ON PAGE FIVE, THE INITIAL EVALUATION SCORING ON THIS, ON C YOU HAVE OVERALL EVALUATION OF THE FIRM AND ITS ABILITY TO COLLABORATE WITH THE OWNER AND DESIGNER.
IS THAT SOMETHING, HOW, HOW DO YOU RATE THAT, I GUESS? IS THAT SOMETHING THAT YOU ALREADY, BECAUSE YOU KNOW, THE FIRMS OR IT'S A COMBINATION OF WAITING BEFORE MEETING OF, OF KNOWLEDGE, UH, DIRECT KNOWLEDGE, WHICH OFTEN, BECAUSE WE'VE BEEN IN BUSINESS A LONG TIME, WE DO HAVE DIRECT KNOWLEDGE.
THESE FIRMS HAVE BEEN IN, IN EXISTENCE FOR MANY YEARS.
COMBINATION OF THAT AND ALSO, UH, REFERENCES.
SO WE DO GET REFERENCES AND REFERRALS FROM OTHER EITHER AIRPORT SYSTEMS OR MUNICIPALITIES THAT HAVE USED THESE TYPES OF
[01:00:01]
FIRMS. AND WE TAKE ALL OF THAT INTO ACCOUNT.UM, YOU CAN SEE, FOR EXAMPLE, FIRM NUMBER FOUR, UH, JUST SCORED QUITE LOW.
WE'VE HAD A REALLY BAD EXPERIENCE WITH THAT FIRM.
UM, AND IN FACT, INTERESTINGLY ENOUGH, IN THEIR PROPOSAL AND, AND ONE OF THEIR OPENING PAGES, THEY SAID, WE, THE CITY OF SAN ANTONIO AND THE AIRPORT SYSTEM HAS PROVEN TO BE VERY, VERY DIFFICULT TO WORK WITH.
AND THEY ACTUALLY PUT THAT IN THEIR, IN THEIR PROPOSAL, WHICH I THOUGHT WAS ODD
BUT WE HAVE HAD SIGNIFICANT ISSUES WORKING WITH THEM TO THE POINT OF, OF GOING TO, UH, NEGOTIATED SETTLEMENTS MULTIPLE TIMES, UH, DOCUMENTS THAT THEY'VE BROUGHT FORWARD THAT WEREN'T ACCURATE.
THEY WERE ASKING FOR HUGE CLAIMS AND WERE NOT ABLE TO JUSTIFY AND, UM, BIG DELAYS IN PROJECTS.
SO A LOT OF IT DOES TURN OUT TO BE PERSONAL EXPERIENCE.
SO IF YOU'VE WORKED WITH THEM AND HAD A GOOD EXPERIENCE, YOU RATE 'EM HIGH AND THEN IF YOU'VE WORKED WITH 'EM, CORRECT.
BUT WHAT IF YOU'VE NEVER WORKED WITH THEM? HOW WOULD YOU RATE THEM? RIGHT.
AND SO THAT'S WHERE YOU, YOU LOOK AT, UM, TYPICALLY WE'LL HAVE SOMEONE ON THE COMMITTEE THAT HAS PERSONAL KNOWLEDGE AND IN FACT, I CAN'T REMEMBER FOR A CONTRACT THIS LARGE, AN EXAMPLE WHERE WE DIDN'T HAVE SOMEONE ON THE COMMITTEE THAT HAD EXPERIENCE.
'CAUSE WE BRING IN BOTH INTERNAL AND EXTERNAL STAKEHOLDERS, BOTH FROM THE AIRPORT TO CITY AND OUTSIDE OF THE CITY TO INCLUDE AT LEAST AN ADVISORY ROLE.
CONSULTANTS WITH GENERAL KNOWLEDGE OF JUST ABOUT EVERY FIRM WHO'S QUALIFIED FOR THE WORK.
SO, UM, I, I CAN'T REMEMBER A TIME IN MY SHORT TIME HERE WHERE WE'VE EVER HAD A SAMPLE, AN EXAMPLE WHERE WE DIDN'T HAVE PERSONAL KNOWLEDGE, BUT WHERE WE WOULDN'T THEN WE STILL CERTAINLY LOOK AT THEIR EXPERIENCE WITH OTHERS AND HOW THEY DOCUMENT, UH, THE PERFORMANCE IN THAT JOB.
I JUST, 'CAUSE AS I'M LOOKING AT 'EM, FIRM THREE, IF IT WASN'T FOR THAT, THEY WOULD'VE PROBABLY BEEN ONE OF THE TOP TWO FIRMS. SO I JUST WANTED TO KNOW HOW FAIR THE, THE OVERALL, IN THAT CASE, THE FIRM THREE SPECIFICALLY HAD HAD, UH, THERE WAS NOT SIGNIFICANT KNOWLEDGE ON THE EVALUATION COMMITTEE ON PRO, ON SIMILAR LARGE PROJECTS.
UH, AND TO COME RIGHT DOWN TO ACTUALLY THE TEAMS THAT THEY HAD PROPOSED AND, AND IN SOME CASES THEIR INABILITY TO, TO ADEQUATELY MANAGE THESE LARGE PROJECTS.
SO THAT WAS BASED ON SOME PERSONAL KNOWLEDGE ON THE COMMITTEE.
AND I THINK CARLOS, YOU WERE AN ADVISOR ON THIS COMMITTEE, SO YOU SAW THAT.
HEARING NONE, UH, I WOULD ENTERTAIN A MOTION TO APPROVE THIS, UH, RECOMMENDATION.
AND YOU OPPOSED? HEARING NONE, IT'S APPROVED.
[11. 19-6837 Local Financial Underwriting Services [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer, Finance]]
THE, UH, FINAL ITEM ON OUR AGENDA.ITEM NUMBER 11 IS LOCAL FINANCE UNDERWRITING SERVICES.
AND WHO WILL WE BE HEARING FROM ON THAT? I THINK THIS IS THE LAST TIME YOU'LL HAVE TO HEAR, HEAR FROM ME, YOU AGAIN? YEAH, IT'S ME AGAIN.
UM, THIS ITEM IS A POST SOLICITATION BRIEFING FOR THE LOCAL FINANCIAL UNDERWRITING, UNDERWRITING SERVICES.
A LITTLE BIT OF BACKGROUND AND A LITTLE BIT OF A LITTLE BIT OF OVERVIEW.
WE ORIGINALLY ISSUED A REQUEST FOR QUALIFICATIONS IN 2017 FOR UNDERWRITING SERVICES FOR THE CITY.
IT'S TYPICALLY A FIVE YEAR POOL.
WE HAD, UH, APPROXIMATELY 35, UM, RESPONDENTS.
WE WENT THROUGH AN EVALUATION AND NARROWED THAT DOWN TO 18 FIRMS. WHEN WE'D GO THROUGH THOSE EVALUATIONS, JUST FOR, UM, ADDITIONAL INFORMATION, WE TYPICALLY, THESE UNDERWRITERS HAVE TO HAVE CAPITAL TO ACTUALLY PROVIDE UNDERWRITING SERVICES.
AND I'LL GO INTO MORE WHAT THOSE UNDERWRITING SERVICES ARE IN HERE A SECOND.
BUT WE EVALUATE THEM FROM CAPITAL STRUCTURES LESS THAN 20 MILLION, 20 MILLION TO 500 MILLION AND 500 MILLION ABOVE.
SO WE HAVE A DIVERSE POOL OF SMALL, MEDIUM SIZE AND LARGE FIRMS. UNDERWRITERS TYPICALLY WILL ASSIST US IN THE ISSUANCE OF OUR DEBT.
FOR EXAMPLE, OUR SUMMER ISSUANCE FOR GENERAL OBLIGATION BONDS.
WE OUT OF THIS POOL, WE WILL ESTABLISH A SYNDICATE OR A TEAM THAT IS STRUCTURED BASED ON THEIR, BASED ON THEIR KNOWLEDGE OF GENERAL OBLIGATION, OUR REVENUE BONDS, OUR, UM, OUR AVIATION.
UM, WE WILL HAVE TO ASSEMBLE A TEAM.
THAT TEAM WILL ACTUALLY REPRESENT THE CITY.
WE'LL MARKET OUR ISSUANCES AND SELL THOSE ISSUANCES TO POTENTIAL INVESTORS.
WHEN WE WENT THROUGH THE R F Q AND AND RECOMMENDED THE 18 FIRMS, THERE WERE LOCAL FIRMS AND THAT POOL THAT WERE DEEMED NON-RESPONSIVE.
AND SO WE RECOMMENDED TO CITY COUNCIL AT THE TIME, AFTER THE INITIAL TERM IS DONE, WHICH IS TWO YEARS THAT WE GO BACK OUT AND PROVIDE AN OPPORTUNITY FOR LOCAL UNDERWRITERS TO ACTUALLY JOIN THE POOL.
AND SO WHAT WE'LL BE RECOMMENDING TODAY, IN ADDITION TO THE 18 FIRMS THAT WE HAVE, THAT WE HAVE THERE, UM, THE, THE ADDITION OF TWO ADDITIONAL FIRMS. SO, UM, THIS IS, UM, AND THIS CONTRACT ACTUALLY WILL END SEPTEMBER 30TH OR THE EXISTING POOL.
AND WE'LL BE RECOMMENDING TO EXTEND THIS FOR AN ADDITIONAL THREE YEARS.
AS I MENTIONED, THIS WAS AN R F Q PROCESS.
WE MET AS AN EVALUATION TEAM AND WE DID RECEIVE TWO PROPOSALS FROM TWO LOCAL FIRMS. WE DISCUSSED THEIR QUALIFICATIONS AND THROUGH CONSENSUS SCORING, WE DETERMINED THAT IT
[01:05:01]
WOULD BE IN THE BEST INTEREST TO ACTUALLY ADD THESE TWO FIRMS TO THE POOL OF 18.SO WE WOULD HAVE A TOTAL OF, UM, 20 FIRMS THAT WOULD BE AVAILABLE FOR THE NEXT THREE YEARS TO ACTUALLY SUPPORT OUR UNDERWRITING SERVICES.
SO STAFF ARE RECOMMENDING, UM, TO GO TO COUNCIL IN OCTOBER AND WE'LL BE RECOMMENDING THE ADDITION OF THESE TWO LOCAL FIRMS TO THE POOL, UM, AS ADDITIONAL LOCAL UNDERWRITERS.
CAN YOU EXPLAIN THEIR ROLE MORE? YEAH.
THEIR ROLE BASICALLY, UM, AS I MENTIONED, WHEN WE ACTUALLY PUT TOGETHER A GENERAL OBLIGATION DEAL, WHICH IS ACTUALLY GONNA SUPPORT OUR CAPITAL PROGRAM, WE USE UNDERWRITERS TO ACTUALLY GO TO THE MARKET.
SO THE UNDERWRITERS HAVE THE CAPITAL AND THEY HAVE THE INVESTOR OUTREACH TO GO THROUGH AND MARKET OUR ISSUANCE OF DEBT.
SO SAY WE'RE GOING TO ISSUE $150 MILLION IN BONDS, SO THEY WILL TAKE THAT ISSUANCE.
WE ASSEMBLE A TEAM, THE TEAM WILL TYPICALLY HAVE A, A SENIOR UNDERWRITER, A CO-SIGN, UNDERWRITER AND CO-MANAGERS.
AND THAT TEAM CAN VARY IN SIZE BASED ON THE SIZE AND THE COMPLEXITY OF THE ISSUE.
UM, THAT TEAM, WE WILL ACTUALLY WORK WITH THEM TO MARKET THE, THE ISSUANCE.
UM, THEY HAVE A SALES DESK TYPICALLY IN NEW YORK, CALIFORNIA OR CALIFORNIA WITH, UM, WITH A SALES DESK THAT ACTUALLY GOES OUT AND THEY SELL TO POTENTIAL INVESTORS, OUR DEBT.
IN THE EVENT THAT THERE'S SOME PIECE OF THAT, UM, DEBT ISSUANCE THAT IS NOT PURCHASED, THEN THEY HAD THE ABILITY TO UNDERWRITE THAT, THAT DIFFERENCE.
AND, UM, WE'LL ACTUALLY SELL THOSE TO FUTURE INVESTORS OVER THE PERIOD OF TIME.
SO THEY BUY 'EM AND THEN SELL 'EM BASICALLY.
UM, TYPICALLY THEY, THEY, THEY WILL SELL TO POTENTIAL INVESTORS.
WHAT'S THE DIFFERENCE BETWEEN THAT AND UNDERWRITERS THAT WE MIGHT WANT TO ENSURE OTHER FINANCIAL, UH, INSTRUMENTS THAT THE, THAT WE'RE WORKING WITH ARE, ARE GOOD.
UH, FOR EXAMPLE, MORTGAGES AND OR IF WE'RE WORKING WITH A BUILDER WHO WANTS TO BUILD AND WE NEED AN UNDERWRITER TO LOOK AT THEIR, THEIR PORTFOLIO TO DETERMINE, RIGHT? SO THAT'S WHY WE USE THE WORD UNDERWRITER.
BUT IT CAN MEAN DIFFERENT THINGS IN DIFFERENT CIRCUMSTANCES, RIGHT? IT CAN, FOR EXAMPLE, VERO WILL USE UNDERWRITERS WHEN SHE BRINGS HER NEIGHBORHOOD BOND PROGRAMS FORWARD, SHE USES AN UNDERWRITER OR A TERM THAT, AND HIRES A FIRM TO GO THROUGH AND LOOK AT THEIR PERFORMANCE TO MAKE SURE THEY MAKE FINANCIAL SENSE.
WE ALSO AS A CITY, HAVE FINANCIAL ADVISORS THAT ASSIST US WHEN WE ACTUALLY PUT OUR DEALS TOGETHER.
UM, AND THAT ONE WILL BE COMING FORWARD AT A FUTURE COUNCIL MEETING, UM, AS WELL, UM, THAT WE RELY UPON TO STRUCTURE OUR DEALS AND ADVISE US AS WE MOVE INTO THE MARKET.
DON'T THEY ACTUALLY SELL, HELP US SELL 'EM TOO, LIKE AN UNDERWRITER DOES THEY THEY TYPICALLY HAVE AN UNDERWRITER UNDERWRITING BRANCH, OUR, OUR SECTION.
AND THAT ACTUALLY PROVIDES A LOT OF VALUE TO US BECAUSE AS FINANCIAL ADVISORS, AS WE'RE MOVING INTO THE MARKET, THEY CAN CONSULT WITH THEIR UNDERWRITING DESK AND IT'S KIND OF A CHECK AND BALANCE ON THE UNDERWRITERS THAT WE'RE PROPOSING AND ALSO GIVES US A SENSE HOW THE MARKET IS PERFORMING TO MAKE SURE THAT WHEN WE'RE SELLING OR ISSUING THAT DEBT, WE'RE GETTING A GOOD PRICE FOR IT.
IS ENOUGH WORK FOR 20 UNDERWRITERS AND THEN ALL THE FINANCIAL ADVISORS TOO? YES.
I GUESS THAT'S UP TO THEM TO DECIDE, ISN'T IT? WELL, AND THERE'S TWO DIFFERENT RULES THERE.
AS TROY MENTIONED, THE FINANCIAL ADVISORS, THEY ARE JUST THAT THEY'RE ADVISORS TO THE CITY.
SO AS WE'RE LOOKING AT POTENTIAL NEW DEALS, STRUCTURING DEALS, NEW TYPES OF FINANCINGS, UM, SPECIAL PROJECTS, THEY'RE WORKING WITH US, THEY'RE PROHIBITED FROM GETTING ON THE SALES SIDE.
SO WHEN WE ISSUE BONDS, THEY CAN'T BE THERE IN ANY ROLE.
THEY'RE REALLY ADVISING US ON MARKET CONDITIONS, STRUCTURE, THOSE KINDS OF THINGS.
UM, I THINK THE POOL WITH 20 FIRMS IN THERE IS, IS A GOOD SIZE FOR US.
UH, THIS LAST DEAL THAT WE DID THIS PAST SUMMER, I THINK WE HAD, I'M THINKING, WHAT DO WE END UP WITH, LIKE 10 OR 12 IN THAT TRANSACTION? SO, UM, SO IT'S A GOOD, IT DEPENDS ON THE SIZE OF THE DEAL AND WHAT WE'RE DOING.
UM, BUT THERE'S CERTAINLY ENOUGH WORK THERE FOR THEM TO, TO TO DO GOING FORWARD.
I DON'T HAVE ANY OTHER QUESTIONS.
UM, ANY OTHER COMMITTEE MEMBERS? YES, MS. STO.
SO, UM, THESE TWO WILL BE ADDED TO THE POOL, UH, FOR THREE YEARS.
SO AM I CORRECT IN THAT THE POOL IS NORMALLY A FIVE YEAR TERM AND THEN THEY'LL ALL BE REEVALUATED AT THAT POINT? YEAH, TYPICALLY IT'S A FIVE YEAR TERM.
UM, TWO YEARS HAVE EXPIRED, SO THIS WILL BE EXTENDED FOR ANOTHER THREE YEARS WITH THE ADDITION OF THE TWO FIRMS. AT THE END OF THAT THREE YEAR, WE'LL GO THROUGH ANOTHER REQUEST FOR QUALIFICATIONS PROCESS AND BRING BACK A RECOMMENDATIONS TO THE AUDIT COMMITTEE AND THE COUNCIL ON A NEW POOL.
AND ARE THERE, UM, ANY MINIMUMS OR MAXIMUMS? ARE THERE, IS THERE A MINIMUM AMOUNT THAT WE WOULD WANT TO BE IN THE POOL? IS THERE A MAX? IT, IT TYPICALLY WE, WHEN WE GO THROUGH THE EVALUATION, WE TYPICALLY LOOK FOR A GOOD MIX, AS I MENTIONED, BETWEEN THE DIFFERENT CAPITAL STRUCTURES BECAUSE WE WANNA MAKE SURE WE HAVE A DIVERSE GROUP OF SMALLS THAT CAN MAYBE CAPITALIZE UNDER 20 MILLION OR IN THE MIDDLE GROUP ARE OVER 500 MILLION.
AND GOING THROUGH THAT EVALUATION, WE ACTUALLY
[01:10:01]
LOOK FOR KIND OF CLEAN BREAKS WHERE IT MAKES SENSE IN EACH OF THOSE GROUPS.I THINK THE GROUP HAS BEEN AS SMALL AS MAYBE 15 IN THE PAST, UM, TO 20 NOW.
SO IT'S REALLY GONNA DEPEND ON THE PROCESS, WHO IS ACTUALLY PROPOSING AND THEIR CAPITAL STRUCTURES.
SO WE WOULD BE ACCEPTING THESE TWO ADDITIONAL UNDERWRITERS TO OUR LIST.
UH, AND THAT'S WHAT WE'RE ASKING RIGHT NOW.
UH, IS THERE A MOTION TO ACCEPT THIS RECOMMENDATION? NO.
ANY OPPOSED? OKAY, HEARING NONE THEN.
ITEM 11 HAS BEEN, UH, APPROVED AND THAT IS OUR ORIGINAL AGENDA.
[Executive Session]
CHAIRMAN, I'M GONNA ASK.YOU HAD, YOU HAD ASKED, UH, ABOUT A, UH, LEGAL ISSUE RELATED TO ONE OF THE AUDITS WITHIN THE PURVIEW OF THAT COMMITTEE.
SINCE, UH, RESPONDING THAT AND, AND POTENTIALLY OTHER QUESTIONS FROM THE COMMITTEE MEMBERS WOULD ENTAIL DELIVERY OF LEGAL ADVICE, I SUGGEST WE GO INTO A, A QUICK EXECUTIVE SESSION TO ANSWER THOSE QUESTIONS.
AND WE WOULD DO SO UNDER TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071, WHICH ALLOWS FOR, UH, LEGAL ADVICE TO BE GIVEN IN EXECUTIVE SESSION.
YES, THAT'S EXACTLY WHAT I WAS GOING TO DO AT THIS TIME.
UH, WE'RE GONNA BE GOING INTO EXECUTIVE SESSION UNDER THE TEXAS GOVERNMENT CODE SECTION 5 5 1 0 7 1.
AND I WOULD ASK, UH, ANYONE WHO IS NOT, UH, A MEMBER OF THIS COMMITTEE OR NEEDS TO BE HERE FOR LEGAL DISCUSSIONS, PLEASE, UH, STEP OUT OF THE ROOM FOR, UH, UNDERSTANDING.
AND, UH, IT IS NOW 1130 AND THE COMMITTEE IS RECONVENING FROM EXECUTIVE SESSION.
NO DECISIONS WERE MADE AND, AND AT THIS TIME THE COMMITTEE IS ADJOURNED.