[00:00:07]
          >> VIAGRAN: ALL RIGHT. WE'RE GOING TO GO AHEAD AND GET STARTED. 
          I KNOW ONE OF OUR COMMITTEE MEMBERS IS ON HER WAY. THE TIME IS NOW 10:05 A.M. 
          ON NOVEMBER 5, 2025, AND THE MEETING OF THE AUDIT COMMITTEE IS NOW CALLED TO ORDER. MADAME CLERK, PLEASE CALL THE ROLL. 
          [Approval of Minutes
 ]
          >> VIAGRAN: THE FIRST ITEM ON THE AGENDA IS THE APPROVAL OF THE MINUTES. 
          ARE THERE ANY CORRECTIONS TO THE MINUTES? CAN I GET A MOTION AND A SECOND TO APPROVE THE MINUTES? WE HAVE A MOTION. 
          DO WE HAVE A SECOND? WE HAVE A MOTION AND A SECOND. 
          ALL IN FAVOR SAY AYE. >> MOTION CARRIES. MADAME CLERK, ARE THERE ANY MEMBERS OF THE PUBLIC SIGNED 
          UP TO SPEAK? >> CLERK: WE HAVE NO MEMBERS OF THE PUBLIC SIGNED 
          [CONSENT AGENDA
 ]
          UP TO SPEAK FOR THIS MEETING. >> VIAGRAN: ALL RIGHT. 
          WE HAVE GOT QUITE A FEW ITEMS HERE BUT WE'VE GOT QUITE A FEW ON CONSENT. 
          ITEMS 2 THROUGH 5. THERE ARE FOUR FINAL INTERNAL AUDIT REPORTS ON THE CONSENT AGENDA. DO ANY MEMBERS WISH TO PULL ANY ITEM ON CONSENT FOR DISCUSSION? ALL RIGHT. IF THERE'S NO ITEMS TO BE PULLED, CAN I GET A MOTION AND A SECOND TO ACCEPT THE AUDITS ON THE CONSENT AGENDA? WE HAVE A MOTION. DO WE HAVE A SECOND? WE HAVE A MOTION AND A SECOND. ALL IN FAVOR SAY AYE. 
          >> 
          [Final Internal Audit Report
 ]
MOTION CARRIES. ALL RIGHT. WE'LL MOVE ON TO OUR INDIVIDUAL ITEMS FOR CONSIDERATION. MADAME CLERK, PLEASE READ 
          THE CAPTION FOR ITEM 6. >> CLERK: ITEM NO. 6 IS ACCEPTANCE OF THE OFFICE OF THE CITY AUDITOR REPORT AU25-013 AUDIT OF EDD GREATER SATX SERVICE 
          AGREEMENT. >> VIAGRAN: ALL RIGHT. THE FLOOR IS YOURS. 
          >> GOOD MORNING. MY NAME IS MICHAEL GUTIERREZ. 
          I WAS A AUDIT MANAGER OVER THIS PROJECT AND I'LL BE PRESENTING THE RESULTS OF THE EDD AUDIT OF THE GREATER SATX SERVICE AGREEMENT. THE OBJECTIVE WAS TO DETERMINE IF EDD IS MONITORING THE SERVICE AGREEMENT WITH GREATER SATX AND IF PERFORMANCE MEASURES ARE ACCURATE AND PROPERLY SUPPORTED. 
          WE CONCLUDED EDD IS APPROPRIATELY MONITORING THE AGREEMENT. 
          HOWEVER, THERE IS A NEED FOR IMPROVEMENT ON THE VALIDATION OF PERFORMANCE METRICS. TAKING A LOOK AT SOME OF THE RESULTS, GREATER SA IS IN COMPLIANCE WITH THE TERMS OF THE SERVICE AGREEMENTS. ALSO EDD IS APPROPRIATELY MONITORING THE MEMBERSHIP OF COMPANIES INTO THE SMALL MINORITY AND WOMEN-OWNED ENTERPRISES. LAST, QUARTERLY PAYMENTS MADE BY EDD TO GREATER SA ARE WITHIN THE TOTAL OF THE SERVICE AGREEMENTS . OUR RECOMMENDATION IS REGARDING THE PERFORMANCE METRIC VALIDATION. EDD IS NOT SUFFICIENTLY VALIDATING THE ACCURACY AND COMPLETENESS OF THE PERFORMANCE METRICS PROVIDED BY GREATER SA. THIS IS DUE TO A LACK OF SUFFICIENT DOCUMENTATION SUPPORT PROVIDED BY GREATER SATX. WE RECOMMEND EDD ESTABLISH PROCEDURES TO ENSURE GREATER SA IS PROVIDING GREATER DOCUMENT SUPPORT FOR THE PERFORMANCE METRICS. ALSO TO DEVELOP PROCEDURES TO PERIODICALLY VALIDATE THE PERFORMANCE METRICS. AND LASTLY, TO CONSIDER REVIEWING AND REVISING THE CRITERIA FOR THE PERFORMANCE-BASED SERVICE AGREEMENT WITH GREATER SA. 
          EDD MANAGEMENT HAS AGREED WITH OUR RECOMMENDATION AND THEY'VE ALREADY SUBMITTED AN ACTION PLAN TO ADDRESS THE ISSUE. IT HAS A COMPLETION DATE OF DECEMBER 2025. THAT CONCLUDES MY PRESENTATION. 
          EDD MANAGEMENT AND REPRESENTATIVES FROM GREATER SA ARE AVAILABLE TO ANSWER ANY QUESTIONS ANYONE MAY HAVE. THANK YOU. 
          >> VIAGRAN: OKAY. THANK YOU. WE PUSHED THIS BACK BECAUSE COUNCILMAN WHYTE HAD QUESTIONS REGARDING IT. SO I'M GOING TO TURN THAT 
          OVER TO YOU. >> WHYTE: THANK YOU, CHAIR. 
          GOOD MORNING. THANK YOU FOR THE PRESENTATION. 
          YOU KNOW, ANY TIME I SEE -- EDD IS NOT SUFFICIENTLY VALIDATING GREATER SATX 
          [00:05:03]
PERFORMANCE METRICS. ANY TIME WE ARE NOT MOVING FORWARD IN A WAY THAT ALLOWS US TO REVIEW THE HARD DATA, IT CONCERNS ME. AND HERE IT LOOKS LIKE THE ISSUE WAS GREATER SATX NOT PROVIDING SUFFICIENT SUPPORT DOCUMENTATION. 
          SO WHAT IS THE PLAN MOVING FORWARD TO GET EDD THE ACCURATE INFORMATION? AND I THINK I READ SOMEWHERE THAT WE'RE TRYING TO TAKE THE BURDEN OF SUPPLYING THAT INFORMATION AWAY OR NOT HAVE IT ALL BE ON GREATER SATX. IS THAT RIGHT? 
          WHAT'S THE PLAN HERE? >> VIAGRAN: LET ME STOP RIGHT HERE. 
          BECAUSE -- SO YOU'RE OKAY WITH THE AUDIT. SO WE CAN MOVE FORWARD. 
          CAN I GET A MOTION AND A SECOND ON ACCEPTING THE AUDIT? 
          >> WHYTE: MOTION MADE. >> VIAGRAN: CAN I GET A SECOND? 
          NOW WE KNOW THE CONTEXT IN THE AUDIT, SO YOU MAY BEGIN. >> THANK YOU SO MUCH. 
          BRENDA HICKS-SORENSEN DIRECTOR OF ECONOMIC DEVELOPMENT DEVELOPMENT. 
          AS MENTIONED THE PRESIDENT AND CEO OF GREATER SATX IS ALSO HERE, SHOULD SHE HAVE ANY QUESTIONS AS WELL. SPECIFICALLY, TO THE VALIDATION OF THE INFORMATION -- SO WHAT ECONOMIC DEVELOPMENT DEPARTMENT HISTORICALLY DOES WHEN WE RECEIVE THE QUARTERLY REPORTS SPECIFICALLY CAPX AND FOR THE JOBS NUMBERS, THESE ARE CONFIDENTIAL CONVERSATIONS, JUST GIVEN THE NATURE OF CONVERSATIONS GREATER SATX AND THE COMPANIES ARE HAVING. 
          WHAT WE DO ARE TRYING TO VALIDATE THE NUMBERS BY LOOKING AT ANNOUNCEMENTS AND OTHER INFORMATION. OBVIOUSLY, IF IT'S A COMPANY WE HAVE BEEN WORKING WITH AND WE HAVE A JOINT INCENTIVE APPLICATION, ANY OTHER DOCUMENTATION THAT WE CAN FIND TO DO THAT. WHAT WE SINCE HAVE STARTED TO DO WITH THE AUDIT REPORT, WHEN WE RECEIVE THAT QUARTERLY REPORT, STAFF IS GOING OVER TO THE GREATER SATX OFFICES AND LOOKING AT THEIR DOCUMENTATION THAT THEY HAVE. 
          SO E-MAIL EXCHANGES, FOR EXAMPLE. ANYTHING THAT THEY HAVE AS FAR AS SPECIFIC CORRESPONDENCE WITH THE COMPANY THAT IDENTIFIES AND VALIDATES THOSE JOB NUMBERS, THOSE CAPX NUMBERS ARE WHAT WE'RE LOOKING AT WITHIN THE SYSTEM SO WE DON'T HAVE IT IN OUR FILES BUT IT'S SOMETHING THAT STAFF IS REVIEWING AND VALUE DATING. SO THAT'S BEEN ADDED SINCE THE AUDIT REPORT . 
          >> WHYTE: IS THAT THE -- THAT'S GOING TO BE THE PRIMARY CHANGE THAT WE THINK 
          WILL ALLOW US TO EVALUATE THE PERFORMANCE? >> YES. 
          SO THAT'S WHAT WE'RE DOING. AGAIN, IT'S ABOUT VALIDATING THE NUMBERS THAT THEY PROVIDE US IN THE QUARTERLY SUPPORT WITH SPECIFICALLY THE JOBS IN THE CAPITAL EXPENDITURES THAT THE COMPANIES ARE PROVIDING TO GREATER SATX AND THEN GREATER SATX REPORTS TO US. AGAIN, LOOKING AT THE DOCUMENTATION THAT THEY'VE BEEN PROVIDED THAT WE HISTORICALLY HAVEN'T HAD ON FILE. 
          >> WHYTE: LET ME ASK YOU THIS. ON PAGE 5 IT TALKS ABOUT 19 BUSINESSES THAT IS RIGHT CATEGORIZED AS WINS. ONE WAS AN INCENTIVE AGREEMENT AND 18 WERE NON-INCENTIVE BUSINESSES. GREATER SATX DOESN'T HAVE AN AGREEMENT WITH NON-INCENTIVE BUSINESSES TO PROVIDE DOCUMENTATION. 
          HOW DO WE DEAL WITH THAT? >> WE ARE LOOKING AT WHAT KIND OF CORRESPONDENCE. 
          THERE MAY BE E-MAIL CORRESPONDENCE BETWEEN GREATER SATX AND ONE OF THOSE NON-INCENTIVE COMPANIES. THERE'S REQUESTS FOR INFORMATION AND EXCHANGE OF DOCUMENTATION, USUALLY BETWEEN GREATER SATX AND THE COMPANY THAT HISTORICALLY, ON THOSE NON-INCENTIVE PROJECTS, ECONOMIC DEVELOPMENT JUST DOESN'T HAVE. SO NOW BY OUR STAFF GOING OVER AND REVIEWING THAT DOCUMENTATION, THAT CORRESPONDENCE, THAT'S HOW WE'RE VALIDATING THE INFORMATION. IF, FOR EXAMPLE, THIS LAST QUARTER, THERE WAS A COMPANY THAT DIDN'T HAVE SOME OF THAT SPECIFIC INFORMATION, SO IT WAS REMOVED FROM THE QUARTERLY REPORT UNTIL SOME ADDITIONAL DOCUMENTATION COULD BE RECEIVED AND THEREFORE WE DIDN'T MAKE THAT PAYMENT, CORRESPONDING 
          WITH THAT INFORMATION. >> WHYTE: EVEN THOUGH WE DIDN'T HAVE ACCURATE INFORMATION ON A LOT OF THESE, THE PAYMENTS DID CONTINUE, RIGHT? 
          EVEN WITHOUT THE FULL VERIFIED INFORMATION? >> AGAIN, WHAT EDD HAS HISTORICALLY DONE IS LOOKED AS ANY ANNOUNCEMENTS, ANY ADDITIONAL INFORMATION. 
          SO WE HAD OUTSIDE KIND OF VALIDATION, IF YOU WILL, FOR A LOT OF THE INFORMATION. 
          IT'S JUST THROUGH THE AUDIT WE NEEDED TO GO AND TAKE IT A LEVEL UP, IF YOU WILL. 
          [00:10:01]
AND SO THAT'S WHERE WE'RE DOING THE -- GOING OVER TO GREATER SATX OFFICES AND 
          LOOKING THROUGH ALL OF THE DOCUMENTATION THEY HAVE. >> WHYTE: IN THE FUTURE, THOUGH, MOVING FORWARD, ARE WE GOING TO PUT SOME SAFEGUARDS IN PLACE TO MAKE SURE THAT WE DON'T RELEASE FUNDING WITHOUT PROOF OF PERFORMANCE? 
          >> YES, SIR. SO THE RECOMMENDATION OF THE AUDIT TEAM WAS TO ADD THAT VALIDATION I JUST DESCRIBED. WE WILL CONTINUE TO DO THAT ON REPORTING. 
          WE'RE ALSO IN CONVERSATIONS -- AS YOU MAY RECALL, THE CONTRACT IS MOVING TOWARDS A PER CAPITA AND PERFORMANCE BASE. AND SO AS WE'RE WORKING ON THAT NEXT CONTRACT, WE'RE LOOKING AT AGAIN HOW WE CAN IMPLEMENT ANY ADDITIONAL LESSONS LEARNED FROM THIS AUDIT INTO SUBSEQUENT CONTRACTS. 
          >> WHYTE: AND YOU STOLE MY LAST QUESTION. SO WOULD THIS NEW WAY WE'RE GOING TO BE PAYING THEM, WHAT EXACTLY IS THE DIFFERENCE? EXPLAIN TO US THE DIFFERENCE BETWEEN THIS PERFORMANCE BASED AND THIS PER 
          CAPITA-BASED METHOD OF PAYMENT? >> WE'RE STILL WORKING THROUGH THAT. WE'LL BE COMING FORWARD TO THE FULL CITY COUNCIL WITH THAT INFORMATION IN EARLY 2026, IS THE PLAN AT THIS POINT IN TIME WITH THE SPECIFIC DETAILS. BUT THE EXECUTIVE COMMITTEE OF GREATER SATX, AS THEY'VE CONTINUED TO BUILD THEIR REGIONAL NETWORK OF COMMUNITIES, HAVE SHIFTED FROM PRIMARILY RELYING ON THE CITY OF SAN ANTONIO, BEXAR COUNTY, AND THE PRIVATE SECTOR, FOR EXAMPLE, TO A PER CAPITA INVESTMENT THAT'S EQUAL FOR ALL COMMUNITY INVESTORS. THAT WAS APPROVED LAST YEAR BY THEIR EXECUTIVE COMMITTEE WE HAVE BEEN, AS WE BRIEFED WITH EWDC DURING THE BUDGET PROCESS AND CITY COUNCIL, HAVE BEEN REFERRING TO THAT PER CAPITA. IT'S MORE OF A CONTRACTUAL FOR SERVICE -- CONTRACT FOR SERVICE. SO MARKETING, ALL OF THAT EFFORTS THAT THEY DO. AND WHAT WE'RE TRYING TO DO AND WHAT WE'RE CURRENTLY IN CONVERSATIONS WITH IS THEN BALANCING THAT PER CAPITA WITH SOME OF THAT PERFORMANCE METRICS. MORE TO COME WHEN WE BRING IT TO CITY COUNCIL EARLY NEXT YEAR ON THE SPECIFICS OF THAT. BUT WE'RE IN NEGOTIATIONS. 
          AND UTILIZING THE AUDIT INFORMATION TO HELP INFORM WHAT THAT LOOKS LIKE. 
          >> WHYTE: I GOT A COUPLE MORE QUESTIONS ON THAT BUT MAYBE IT'S BEST TO WAIT UNTIL YOU GUYS COME BACK NEXT YEAR. SARAH, DID YOU WANT TO -- 
          >> I'M HAPPY TO JUMP IN QUICKLY. OUR CONTRACTS ARE ALWAYS PERFORMANCE BASED, SIR. YOU ALL HAVE THE OPPORTUNITY TO LOOK AT WHAT WE'RE DOING AND DETERMINE IF YOU LIKE THE WORK WE'RE DOING. THAT'S NOT GOING TO CHANGE IN ANY WAY AS WE MOVE FORWARD WITH THIS STRUCTURE. THE GOAL IS REALLY TO HELP EQUALIZE THE BURDEN FOR THE CITY OF SAN ANTONIO WITH THE OTHER CITIES AND COUNTIES THAT ARE PARTICIPATING. SO YOU'RE NOT PAYING AN OUTSIZED AMOUNT OF RESOURCES TOWARDS OUR WORK. I THINK THE BIGGEST DIFFERENCE IS THAT ONE OF OUR BIGGEST CHALLENGES IS THE WORK THAT WE DO IS SO RELIANT ON ANOTHER COMPANY MAKING A DECISION THAT WE HAVE ZERO CONTROL OVER. AND SO PART OF THE PURR PER CAPITA IS ALLOWING US TO DO THE WORK THAT NEEDS TO BE DONE WITHOUT THE KIND OF DIPS AND INCREASES THAT KEEP OUR CASH FLOW FROM STABILIZING AND ALLOWING US TO CONTINUE TO DO THE WORK. EVEN DURING THESE TIMES WHEN COMPANIES HAVE PAUSED ON DECISIONS BECAUSE OF THE BROADER GLOBAL ECONOMY, FOR EXAMPLE. 
          IT'S AN EFFORT TO HELP US STABILIZE A BIT IN TERMS OF WHAT WE CAN EXPECT BUT 
          ALWAYS WITH THE PERFORMANCE MINDSET. >> WHYTE: WELL, YOU'RE OFF TO A GREAT START, IN MY HUMBLE OPINION. THANK YOU FOR ALL THE WORK YOU DO. CHAIR, THANK YOU FOR BRINGING THIS BACK TODAY. 
          I CAN'T STRESS ENOUGH THAT THE WORK THAT YOU GUYS ARE DOING AND THAT EDD IS ASSISTING WITH HOWEVER WE CAN. THIS IS -- I SAY IT ALL THE TIME. IT'S PUBLIC SAFETY. IT'S INFRASTRUCTURE AND IT'S ECONOMIC DEVELOPMENT. THAT IS WHAT OUR CITY GOVERNMENT SHOULD BE FOCUSED ON EVERY SINGLE DAY. YOU GUYS PLAY A HUGE ROLE IN THE ECONOMIC DEVELOPMENT PIECE. BRINGING BUSINESSES TO SAN ANTONIO ALLOWS US TO PRESENT JOB OPPORTUNITIES TO OUR CITIZENS. WE NEED TO CONTINUE TO REALLY DOUBLE OUR FOCUS IN THIS AREA. AND SO THANK YOU FOR WHAT YOU'RE DOING. BRENDA, SAME TO YOU. CHAIR, THANKS. 
          >> VIAGRAN: THANK YOU. ANY OTHER COMMITTEE MEMBERS HAVE QUESTIONS? 
          [00:15:04]
ALL RIGHT. IF THERE'S NO OTHER QUESTIONS, WE HAVE A MOTION 
          AND A SECOND. ALL IN FAVOR SAY AYE. >> 
          >> VIAGRAN: ALL OPPOSED SAY NO. MOTION CARRIES. 
          ALL RIGHT. WE'RE MOVING ON TO ITEM 7. MADAME CLERK, PLEASE READ 
          THE CAPTION FOR ITEM 7. >> CLERK: ITEM 7 IS ACCEPTANCE OF THE OFFICE OF THE CITY AUDITOR REPORT AU25-019 AUDIT OF SAFD FLEET OPERATIONS. 
          >> VIAGRAN: ALL RIGHT. WE HAVE A STAFF PRESENTATION? 
          >> MY NAME IS NATASHA LEECH AND I'LL BE PRESENTING THE RESULTS OF THE AUDIT PROJECT OUR OBJECTIVE WAS TO DETERMINE IF FLEET WAS MAINTAINED IN ACCORDANCE WITH POLICIES. WE DETERMINED IF FUEL CARS WERE PROPERLY MANAGED. 
          FLEET PROVIDES MAINTENANCE SERVICES FOR BOTH FIRE AND EMS OPERATIONS. 
          ADDITIONALLY THEY MANAGE THE FUEL CART PROGRAM WHICH ALLOWS UNIFORMED PERSONNEL TO OBTAIN FUEL FOR OPERATIONS. WE DETERMINED THE FLEET WAS NOT MAINTAINED IN ACCORDANCE WITH POLICIES. ADDITIONALLY AT THE TIME OF THE AUDIT FLEET LACKED POLICIES AND PROCEDURES OVER THE MAINTENANCE PROCESS. 
          FLEET USES FASTER WEB AS A SYSTEM OF RECORD FOR OPERATIONS . 
          WE DETERMINED THAT LABOR TIMES WERE IN EXCESS OF REASONABLE MAINTENANCE TIMES AS A RESULT OF IMPROPER LOGGING PROCEDURES FOR WORK ORDERS. 
          ADDITIONALLY, WE DETERMINED THAT DOWNTIME DATA WAS NOT ALWAYS REFLECTIVE OF THE VEHICLE'S ACTUAL STATUS. FURTHER, WE DETERMINED THAT NOT ALL PREVENTIVE MAINTENANCE SCHEDULES HAD BEEN POPULATED IN FASTER WEB. 
          THESE SCHEDULES ALLOW FLEET TO VERIFY THE VEHICLES THAT ARE COMING DUE FOR MAINTENANCE ARE BROUGHT IN TIMELY FOR SERVICE. FURTHER, WE REVIEWED PARTS INVENTORIES AND DETERMINED THAT THEY WERE NOT ACCURATE AND THAT STAFF INVENTORY COUNTS WERE INCOMPLETE AND SOMETIMES LACKED DOCUMENTATION. 
          PARTS WERE NOT ALWAYS ASSIGNED TO THE CORRECT WORK ORDER OR WERE ASSIGNED TO AN INCORRECT VEHICLE AND THE REVIEW PROCESS WAS NOT EFFECTIVE AT IDENTIFYING THESE ISSUES. ADDITIONALLY, P-CARD PURCHASES LACKED DETAIL AND PURCHASE ORDERS WERE NOT ALWAYS INPUT INTO FASTER WEB TIMELY. 
          FURTHER, CONTROL OVER THE KEYS WERE NOT ADEQUATE. WE REVIEWED THE FUEL CARD PROGRAM AND FOUND IMPROVEMENTS THAT COULD BE MADE. 
          WHILE THE FIRE DEPARTMENT IS PERFORMING REVIEWS, WE DID IDENTIFY IMPROVEMENTS THAT COULD BE MADE, SPECIFICALLY EXCESS QUANTITIES OF FUEL TYPE AND THAT COMMUNICATION COULD BE STRENGTHENED. WE IDENTIFIED FUEL CARD USERS WHO WERE NOT APPROPRIATE AND UNUSED FUEL CARDS THAT WERE STILL ACTIVE. 
          FINALLY, WE REVIEWED USER ACCESS OVER FASTER WEB AND FOUND THAT STAFF WERE NO LONGER CITY OF SAN ANTONIO EMPLOYEES WHO HAD ACCESS. FIRE DEPARTMENT MANAGEMENT AGREED WITH THE RECOMMENDATIONS AND HAVE DEVELOPED ACTION PLANS TO ADDRESS THESE ISSUES WITH AN ANTICIPATED COMPLETION DATE OF OCTOBER 2025. 
          THAT CONCLUDES MY PRESENTATION. FIRE DEPARTMENT MANAGEMENT 
          IS AVAILABLE FOR ANY QUESTIONS. >> VIAGRAN: OKAY. 
          THANK YOU SO MUCH. BEN, DID YOU WANT TO ADD SOME INFORMATION? 
          >> GORZELL: GOOD MORNING, CHAIR. IF I MAY SUGGEST AS WE CONSIDER AUDIT REPORTS AS THEY GET PRESENTED FROM THE AUDITOR'S OFFICE, IT MIGHT BE HELPFUL IF WE HAVE THE STAFF PRESENT THE RECOMMENDATIONS IN TERMS OF HOW WE'RE GOING TO ADDRESS THE ISSUES. SO WE'VE GOT THE FIRE CHIEF HERE THAT CAN DO THAT FOR YOU AND WALK THROUGH THAT. BUT AS A PRACTICE GOING FORWARD, WE WOULD RECOMMEND WE DO THAT, JUST SO YOU GET THE AUDIT REPORT FINDINGS AND THEN HOW IS STAFF GOING TO ADDRESS THE ISSUES, BEFORE WE GET INTO 
          DISCUSSION. >> VIAGRAN: YES. IF YOU DID NOT HAVE A NOTEBOOK OR GET THAT, PLEASE LET US KNOW SO WE CAN MAKE SURE THAT YOU GET THE AUDIT REPORT AND MY TEAM CAN HELP WITH MAKING SURE Y'ALL HAVE -- I HAVE A NOTEBOOK AND READ THESE BEFORE. YES. THAT'S A GREAT IDEA, BEN. 
          CAN I GET A MOTION AND A SECOND TO ACCEPT THE AUDIT REPORT? WE'VE GOT A MOTION AND A SECOND. OKAY. 
          AND, CHIEF, DO YOU WANT TO COME UP AND ADDRESS HOW YOU'RE GOING TO TAKE CARE OF THIS? I READ THE RECOMMENDATIONS AND I THINK ONE THING I'VE SEEN -- BEN, WE'VE TALKED ABOUT THIS -- THAT WE HAVE SEEN IS A PATTERN THAT WHAT DO WE DO WITH EMPLOYEES THAT LEAVE THE CITY AND HOW DO WE TAKE THEM OFF THE SYSTEM FAST ENOUGH? IT SEEMS LIKE THIS IS A RECURRING TREND AS WE GO THROUGH THAT. AND SO I WOULD LIKE TO -- I'M HOPING ONE OF THESE DEPARTMENTS WILL COME WITH A GREAT IDEA OF HOW WE MAKE THIS QUICKER AND FASTER. 
          BUT IF YOU WANT TO GO AHEAD AND ADDRESS SOME OF THE RECOMMENDATIONS? 
          [00:20:05]
          >> CHIEF: YES, MA'AM. GOOD MORNING, EVERYBODY. THANK YOU, BUDDY, FOR YOUR WORK ON THIS AND YOUR ENTIRE TEAM. A LOT OF WORK WENT INTO THIS REVIEW AND I REALIZE THAT. THANK YOU. WE REALLY DO APPRECIATE THE TIME AND EFFORT THAT WENT INTO THIS TO HELP US TAKE A CLOSER LOOK AT OUR FLEET MAINTENANCE OPERATION. AS YOU ALL KNOW, OUR FLEET IS THE BACKBONE OF WHAT WE DO. WE OPERATE ONE OF THE LARGEST AND BUSIEST FLEETS IN THE CITY. EVERYTHING FROM FRONT-LINE ENGINES AND MEDIC UNITS TO SPECIALIZED UNITS. THESE VEHICLES NEED TO BE READY AROUND THE CLOCK 24/7. 
          THIS AUDIT GAVE US A GREAT OPPORTUNITY TO TAKE A CLOSER LOOK AND MAKE SURE OUR PROCESSES ARE KEEPING PACE WITH THAT DEMAND. THE RECOMMENDATIONS ARE ALL FAIR AND VERY CONSTRUCTIVE. MANY LINE UP WITH CHANGES THAT WE'VE ALREADY STARTED MAKING, IF NOT HAVE ALREADY COMPLETED. THINGS LIKE TIGHTENING UP OUR PREVENTIVE MAINTENANCE SCHEDULES, IMPROVING HOW WE TRACK AND DOCUMENT REPAIRS, AND INCREASING COMMUNICATION BETWEEN OUR OPERATIONS AND SUPPORT DIVISIONS. 
          WE'VE ALSO MADE PROGRESS IN UPDATING OUR FLEET AND MAINTENANCE SOFTWARE AND REINFORCING ACCOUNTABILITY ACROSS THE PROCESS. I ALSO WANT TO RECOGNIZE OUR FLEET AND LOGISTICS PERSONNEL WHO WERE ALSO HERE. 
          THE DIVISION IS UNDER NEW LEADERSHIP, AND THAT IS JOHN PEREZ, WHICH IS SITTING IN THIS FIRST ROW BEHIND ME. THEY ARE THE ONES HELPING US KEEP THESE VEHICLES SAFE, OPERATIONAL, RELIABLE, AND ON THE ROAD. THEY WORK BEHIND THE SCENES AND IT'S CRITICAL TO EVERY EMERGENCY RESPONSE THAT WE MAKE. 
          OVERALL, WE APPRECIATE THE CONSTRUCTIVE FEEDBACK. IT HAS HELPED US SEE WHERE WE CAN DO BETTER, AND THAT'S EXACTLY WHAT WE INTEND TO DO. 
          WE TOOK THE AUDITOR'S FEEDBACK VERY SERIOUSLY AND HAVE ALREADY COMPLETED ALL OF THE RECOMMENDATIONS. AND WE'RE COMMITTED TO FOLLOW THROUGH ON THE RECOMMENDATIONS TO ENSURE OUR FLEET CONTINUES TO MEET THE GROWING DEMANDS OF THE CITY. I WILL BE HERE FOR ANY QUESTIONS, AS WELL AS MY 
          STAFF. THANK YOU, AGAIN. >> VIAGRAN: ALL RIGHT. 
          IS THERE ANY DISCUSSION? YES. >> QUICK QUESTION FOR YOU, CHIEF. THANK YOU FOR ALL YOU DO FOR OUR CITY. 
          APPRECIATE THAT. DOING A LITTLE BIT OF RESEARCH IN WHAT WE FOUND HERE, I SAW THAT THE FUEL CARD ISSUE AND THE EVERETT CONTROL ISSUE HAD BEEN AN ISSUE FOR US HERE IN 2016, 2019 AND ON . CAN YOU TALK TO SOME OF THE CONTROLS THAT YOU'RE IMPLEMENTING TO MAKE SURE THE CORRECTIVE ACTION IS 
          REAL AND ACTUALLY GETS ACTION FULLY? >> YES, MA'AM. 
          OF COURSE. WE HAVE DOCUMENTED AND DISTRIBUTED THE DEPARTMENT'S FUEL CARD POLICY TO ALL AUTHORIZED USERS. REINFORCING THE EXPECTATIONS FOR PROPER USE AND RECORDKEEPING. ANY EXCEPTIONS OR POTENTIAL VIOLATIONS ARE NOW BEING REVIEWED PROMPTLY. AND FOLLOWED UP TO ENSURE ACCOUNTABILITY AND COMPLIANCE WITH THE CITY POLICY. 
          >> THANK YOU VERY MUCH. A QUESTION FOR BUDDY ON THE SAME TOPIC. 
          CAN YOU TALK ABOUT THE AUDIT CONDUCTED AND HOW YOU LOOK AT TRENDS OVER TIME INSTEAD OF -- I KNOW WE GET PRESENTED SOMETHING THAT MAY APPEAR TO ME AS A NEW PERSON AS A DISCREET EVENT. CAN YOU TALK TO HOW YOU GUYS DO ON THE BACK-END ANALYSIS 
          OVER TIME. >> TO TOUCH ON THAT, PART OF OUR AUDIT STANDARDS WE'RE REQUIRED TO FOLLOW UP ON EACH ONE OF THE PRIOR AUDIT RECOMMENDATIONS. 
          WE HAVE A HYBRID CURRENTLY. IF THERE'S A PRIOR AUDIT RECOMMENDATION THAT IS EXPLICITLY IN OUR PLANNING STAGE. AS FAR AS TIMING OF TESTING, SOMETIMES WE'LL TEST IT AT THE AUDIT OR IT'S PART OF OUR FOLLOW-UP TESTING THAT WE HAVE. PERIODICALLY, WE PRESENT IT EVERY FOUR TO SIX MONTHS, ALL THE RECOMMENDATIONS. IF Y'ALL REMEMBER THE BLUE, THE RED, THE YELLOW MATRIX. 
          SO WE FOLLOW UP. WE DON'T NECESSARILY KEEP A TREND THAT INDICATES OR PROVIDE THIS TO EXECUTIVE LEADERSHIP THAT STATES THE PAST THREE AUDITS HAVE HAD REOCCURRING ISSUES. WE DON'T NECESSARILY APPROACH IT THAT WAY. 
          BUT THAT'S HOW WE DO ADDRESS, FROM A TESTING PERSPECTIVE, PRIOR AUDITS. 
          >> VIAGRAN: BEN, TROY, DO Y'ALL WANT TO ADDRESS SOME OF THE TRENDS AND HOW Y'ALL 
          ADDRESS THEM FOR OUR REPRESENTATIVES? >> GORZELL: SURE, CHAIR. 
          ONE OF THE THINGS THAT BUDDY TALKED ABOUT, HE WAS LOOKING AT THE RISK AND HOW HE 
          [00:25:03]
AUDITS GOING FORWARD. WE DO LOOK AT AUDITS AND RESULTS AS THEY COME OUT TO SEE IS THEIR APPLICATION ELSEWHERE IN THE CITY. SO DO WE HAVE SIMILAR ISSUES SOMEWHERE ELSE. WE LOOK AT THAT INTERNALLY TO IMPLEMENT CHANGES THAT COME OUT OF THE AUDIT. OBVIOUSLY, WE'RE LOOKING FOR HOW DO WE IMPLEMENT RECOMMENDATIONS, BEST PRACTICES, THINGS THAT WE CAN IMPROVE ON ACROSS THE ORGANIZATION. SO ANYTHING WE CAN LEARN THROUGH BUDDY'S AUDITS, WE TRY TO USE THAT GOING FORWARD. OBVIOUSLY, IF WE CONTINUE TO SEE CHALLENGES IN AREAS, OBVIOUSLY WE NEED TO COORDINATE MORE AND MAKE SURE WE'RE PUTTING THE RIGHT RESOURCES THERE. TO YOUR POINT, MAKE SURE WE'VE GOT THE RIGHT CONTROLS IN PLACE SO WHEN BUDDY COMES BACK AND DOES A FOLLOW-UP, WE WANT TO SEE WE HAVE TAKEN CARE OF THAT ISSUE AND MOVED ON. 
          >> I APPRECIATE THAT, BEN. ON THAT NOTE, WHAT IS YOUR ROOT CAUSE ANALYSIS METHODOLOGY LOOK LIKE FOR THE CITY OF SAN ANTONIO, JUST IN GENERAL? I'M UNAWARE OF IT. ARE YOU LOOKING AT THE MOSAIC OF, HEY, THESE ARE RISKS THAT ARE VULNERABILITIES TO OUR CYBER OR THESE ARE RISKS TO RECRUITING TOP TALENT. IF YOU COULD TALK TO THAT METHODOLOGY IN THIS TYPE OF 
          FORUM. >> GORZELL: OBVIOUSLY IT'S GOING TO VARY A LOT BECAUSE OF THE DIFFERENT TYPES OF SERVICES WE PROVIDE. VERY DISTINCT, VERY DIFFERENT. SO THAT RISK ANALYSIS IS GOING TO BE CATERED TO WHAT'S HAPPENING THERE. FOR EXAMPLE, IF WE SEE A LARGE INFLUX OF FUNDING, FEDERAL FUNDING OF SOME TYPE, WE'VE GOT TO IMPLEMENT A NEW PROGRAM, WE KNOW THERE'S GOING TO BE MORE RISK THERE. IF WE HAVE TO IMPLEMENT SOMETHING QUICKLY, WE PUT IT IN AT SCALE, WE KNOW THAT'S GOING TO CHANGE. 
          VERSUS A CORE FUNCTION, WE HAVE TO LOOK AT OUR POLICIES AND PROCESSES KEEPING UP AND ARE WE ABLE TO LOOK AT THAT FROM A TECHNOLOGY AND PROCESS PERSPECTIVE. 
          IT WILL TAILORED TO THE DIFFERENT AREAS OF THE ORGANIZATION. 
          >> DO YOU CONSIDER CULTURE IN THAT RISK MOSAIC THERE? IF THERE'S AN ORGANIZATIONAL CULTURE CHALLENGE, IS THAT EVEN IN THE CONVERSATION? FOR EXAMPLE, THIS SPECIFIC 
          ISSUE HERE, WHICH IT SEEMS TO HAVE PERVADED OVER TIME. >> GORZELL: I THINK WE WILL CERTAINLY LOOK AT TRYING TO IDENTIFY WHY MAYBE WE'RE NOT MAKING AS MUCH PROGRESS IN AREAS AS WE WOULD LIKE TO. THERE ARE A LOT OF THINGS THAT CAN GO INTO THAT. TECHNOLOGY CAN BE A PART OF IT, OUR PROCESSES. 
          DO WE HAVE A LOT OF MANUAL PROCESSES IN THERE THAT TEND TO MAYBE LEAD TO MORE RISK IN AN AREA OR A CHALLENGE IN TERMS OF GETTING SOMETHING ADDRESSED. 
          SO WE'LL CERTAINLY LOOK AT ALL OF THOSE AREAS TO IDENTIFY HOW DO WE IMPROVE -- AGAIN, AT THE END OF THE DAY, WE APPRECIATE ALL THE WORK THAT BUDDY DOES BECAUSE FOR US WE WANT TO IDENTIFY ISSUES, FIX THEM IN THAT AREA, AND SEE WHAT DID WE LEARN OUT OF THAT AND WHERE CAN WE APPLY THAT ELSEWHERE WITHIN THE ORGANIZATION. CHAIR, IF YOU WANT, I CAN JUST ADD ON THE LAST ITEM -- 
          I KNOW YOU ASKED ABOUT THE ACCESS TO SYSTEMS. >> VIAGRAN: YES. 
          >> GORZELL: YOU ARE CORRECT. THAT IS A CHALLENGE. 
          WE HAVE HUNDREDS AND HUNDREDS OF APPLICATIONS ACROSS THE ORGANIZATION THAT WE RUN. SO WHEN SOMEONE LEAVES THE ORGANIZATION, WE REMOVE THEIR ACCESS FROM THE NETWORK, WHICH MAKES IT DIFFICULT TO GET TO THESE APPLICATIONS, IF THEY WERE TRYING TO LOG IN. YOU HAVE TO GET INTO THE NETWORK. THEN YOU'VE GOT TO GO INTO THE SUBSYSTEMS. BUT BUDDY'S TEAM IS CORRECT. WE SHOULD GET THEM OFF OF ALL OF THOSE SYSTEMS IN TERMS OF THEIR ABILITY TO ACCESS. BUT THE CONTROL IS REALLY AT THAT NETWORK LEVEL. AS WE MOVE FORWARD, WE'VE TALKED ABOUT OUR LARGE SAP UPGRADE IMPLEMENTATION. WE REALLY WANT TO PUT IN PLACE SOME MORE AUTOMATION AND TECHNOLOGY AROUND THAT. WE WERE JUST TALKING ABOUT THAT. 
          SO THAT IF BEN LEAVES, WE CAN SEE THAT BEN'S ACCESS IS THESE 20 SYSTEMS AND YOU'RE ABLE TO DO IT VERY QUICKLY. WE DON'T HAVE THAT KIND OF CAPABILITY BUILT IN FROM AN AUTOMATED PERSPECTIVE. IT'S A LITTLE MORE MANUAL, WHICH MAKES IT MORE CHALLENGING, WHICH IS WHY YOU SEE THIS CONTINUING TO POP UP. 
          WHAT WE ARE DOING, THROUGH A LOT OF THESE AUDITS, WE STILL NEED TO CATCH A FEW MORE, BUT ASKING THE DEPARTMENTS TO LOOK AT THEIR SYSTEMS TO REVIEW ACCESS ON A QUARTERLY BASIS FOR EVERYTHING THEY RUN IN THEIR DEPARTMENT SO AT LEAST WE'RE UPDATING IT ON A QUARTERLY BASIS. OUR CONTROL IS AT THE NETWORK LEVEL SO WE NEED TO GET TO A PLACE WHERE WE ARE ABLE TO DECOMMISSION VERY 
          QUICKLY. >> VIAGRAN: THANK YOU, BEN. 
          THANK YOU FOR THOSE THOUGHTFUL QUESTIONS. I FEEL A SUBCOMMITTEE FORMING. TROY, IF YOU NEED SOME COMMITTEE MEMBERS TO HELP, KIND OF GIVE INPUT AS WE LOOK. BECAUSE, AS MANY OF Y'ALL KNOW, I'M ALWAYS GOING TO SAY IT'S A STAFFING ISSUE. SO BEING PREPARED FOR NEXT 
          [00:30:03]
BUDGET AND MAYBE LOOKING IF WE NEED MORE STAFFING OR A DIFFERENT PROGRAM HERE. 
          SO MAYBE WE START THAT WITH A SUBCOMMITTEE THROUGH AUDIT TO LOOK AT WHAT ARE THE TRENDS, AS YOU MENTIONED. AND MAYBE CULTURE THAT WE NEED TO ADDRESS AND THAT WE COULD DO THAT IF WE EITHER, ONE, HAVE THE TRAINING OR THE STAFFING THAT WE NEED. 
          I KNOW WE DID MAKE CUTS. MARIA, I KNOW WE MADE CUTS TO MAKE THIS BUDGET BUT STAFF IS KEY. I'LL KEEP THAT IN MIND AND HAVE A DISCUSSION WITH MY COMMITTEE MEMBERS COMING UP AS WE GO INTO THE NEW YEAR. FUN THINGS TO HAPPEN NEXT YEAR. ANYONE ELSE HAVE ANY QUESTIONS? 
          YES. >> SO WHEN WE PREPARE TO DO OUR FIRE RISK ASSESSMENT LATER THIS YEAR, WILL WE BE INTEGRATING THE FINDING IN THE AUDIT COMMITTEE -- 
          >> GORZELL: CAN YOU TURN ON YOUR MICROPHONE? I DON'T THINK THEY PICKED IT 
          UP. >> SPEARS: SORRY. WHEN WE DO OUR FIRE RISK ASSESSMENT, MARIA, WILL THIS INTEGRATE A LOT OF WHAT THE AUDIT COMMITTEE FOUND INTO 
          THE ASSESSMENT? >> VILLAGOMEZ: NO, COUNCILWOMAN. 
          THE ASSESSMENT IS SPECIFICALLY TO LOOK AT -- I'M SORRY. 
          I'M MARIA VILLAGOMEZ, THE CITY MANAGER OVER THE FIRE DEPARTMENT. 
          SO THE FIRE DEPARTMENT ASSESSMENT THAT WE ARE GOING TO BE DOING SHORTLY IS GOING TO LOOK AT STAFFING NEEDS AS WELL AS THE CONDITION OF OUR FACILITIES. 
          AND IT WILL BE A MASTER PLAN FOR FACILITIES FOR ANY FUTURE FACILITIES THAT ARE NEEDED IN THE COMMUNITY. AS WELL AS AN ASSESSMENT IN THE READINESS OF OUR EQUIPMENT. THE RECOMMENDATIONS FROM BUDDY AND HIS TEAM -- AND HE CONTINUES TO DO OTHER AUDITS IN THE FIRE DEPARTMENT THAT WE'LL BRING FORWARD -- WILL HELP US IMPROVE OUR OPERATIONAL PROCEDURES AND THOSE ACTIONS ARE BEING TAKEN NOW SO WE DON'T HAVE TO WAIT UNTIL THE ASSESSMENT IS DONE. 
          IT'S A SEPARATE TYPE OF WORK THAT WE'RE GOING TO BE DOING. 
          AND WE'RE GOING TO BRING THE TIMELINE TO BEGIN DISCUSSING THE SCOPE WITH THE PUBLIC 
          SAFETY COMMITTEE IN THE NOVEMBER MEETING. >> SPEARS: I GUESS MY THOUGHTS WERE IF WE'RE HAVING ISSUES IN MAINTAINING OUR INVENTORY COUNTS, THAT THAT WOULD IMPACT THEN OUR ASSESSMENT OF WHAT WE HAVE, THE CONDITION, WHERE IT'S AT, THOSE SORTS OF THINGS. MAYBE THERE MIGHT BE SOME CROSSOVER. 
          I KNOW WE'RE IMPLEMENTING THE RECOMMENDATIONS SO PERHAPS IT WON'T BE AN ISSUE 
          AT THAT TIME. THAT'S KIND OF WHERE -- >> VILLAGOMEZ: THAT IS, 
          COUNCILWOMAN. I'M SORRY TO INTERRUPT. >> SPEARS: GO AHEAD. 
          >> VILLAGOMEZ: THAT IS CORRECT. WHAT THE AUDIT FOUND WAS LACK OF MONITORING AND PROCESSES IN PLACE FOR THE EMPLOYEES TO BE ABLE TO ENSURE THAT THE INVENTORY IS BEING RECEIVED, TRACKED, AND USED PROPERLY. 
          SO WE ALREADY HAVE PROCEDURES IN PLACE TO DO THAT. 
          ONE OF THE IMPROVEMENTS THAT THE FIRE CHIEF TALKED ABOUT IS MORE CLOSELY MONITORING. 
          THE COMMAND LEVEL WITHIN THE FIRE DEPARTMENT, THERE WILL BE NOW REPORTS THAT WILL BE SENT ALL THE WAY UP TO HER OFFICE TO MAKE SURE THAT THE THINGS WE'RE DISCUSSING WITH YOU TODAY, THEY'RE ACTUALLY DONE. I GUESS TO THE COMMENTS THAT WERE SAID BEFORE, WE WANT TO MAKE SURE THAT AS WE MOVE FORWARD IN THE FUTURE, THAT WE HAVE PROCESSES IN PLACE TO ENSURE THAT WE ARE NOT IN THIS SITUATION AGAIN. 
          SO THOSE ARE THE MONITORING PROCEDURES THAT WE ADDED THAT WERE NOT IN PLACE PRIOR 
          TO THE AUDIT. >> SPEARS: THANK YOU. >> WHYTE: ANY OTHER COMMITTEE MEMBER? NO? I'LL JUST SAY, CHIEF, THANK YOU FOR ALL OF YOUR WORK AND TO ALL OF OUR BRAVE MEN AND WOMEN WHO ARE IN THE DEPARTMENT, THANK YOU ALL SO MUCH FOR WHAT YOU DO. I DO WANT TO REMIND FOLKS, I THINK IT WAS A YEAR AGO WE HAD AN ISSUE OVER IN MY PART OF TOWN WHERE THERE ACTUALLY WAS A SHORT PERIOD OF TIME WHERE WE WERE -- WE DIDN'T HAVE THE NECESSARY EQUIPMENT FOR THREE, FOUR HOURS. YOU'LL REMEMBER WE TALKED ABOUT THAT A YEAR AGO. 
          AND SO BECAUSE I THINK ONE OF OUR TRUCKS WAS IN THE SHOP OR SOMETHING. 
          THESE CHANGES HERE FROM A MISSION READINESS STANDPOINT, WE'RE CONFIDENT WE'LL MAKE SURE THINGS LIKE THAT DON'T HAPPEN IN THE FUTURE, RIGHT? 
          >> ABSOLUTELY. AND WE HAVE DONE A COMPLETE OVERHAUL FROM START TO FINISH, STREAMLINING THE PROCESS, ENSURING THAT WE'RE FOCUSED ON TIMELINESS OF 
          REPAIR AND QUALITY OF REPAIR AS WELL. >> WHYTE: OKAY. 
          [00:35:03]
GREAT. WELL, AGAIN, THANK YOU FOR WHAT YOU ALL ARE DOING. 
          >> CHIEF: THANK YOU. >> WHYTE: ALL RIGHT. DO WE NEED TO VOTE ON THAT? 
          WE ALREADY DID? >> AND A SECOND TO ACCEPT THE AUDIT. PLEASE SIGNIFY BY SAYING "AYE" IF WE ACCEPT THIS. ANY NAYS? THERE WE GO. 
          SEE, THE MAYOR NEEDS TO MAKE ME CHAIR OF A COMMITTEE SO I CAN GET ON WITH THIS. 
          [Staff Briefing
 ]
[LAUGHTER] HERE WE GO. ITEM 8. 
          >> CLERK: ITEM NO. 8 IS A BRIEFING ON RESULTS OF THE REQUIRED INDEPENDENT PEER 
          REVIEW OF THE OFFICE OF THE CITY AUDITOR. >> GOOD MORNING. 
          I'M BUDDY VARGAS, THE CITY AUDITOR. I WANTED TO PRESENT OUR PEER REVIEW RESULTS. A COMMON QUESTION THAT WE GET PERIODICALLY IS WHO AUDITS THE AUDITOR AND THAT'S WHAT THIS IS. WE RECEIVED AN AUDIT IN JUNE. BECAUSE OF THE ELECTIONS PRESENT THIS. SO IT'S BETTER LATE THAN NEVER BUT IT'S NOVEMBER AND I JUST WANTED TO GO OVER BRIEFLY THE RESULTS. WE'RE REQUIRED TO RECEIVE AN AUDIT EVERY THREE YEARS BY GOVERNMENT STANDARDS. OUR OUTCOMES COULD BE PASS, PASS WITH RECOMMENDATIONS, OR FAIL. WE HAD THREE INDIVIDUALS THROUGHOUT THE UNITED STATES. IT'S GEARED THAT WAY, JUST SO THERE'S OBJECTIVITY IN OUR RESULTS. THEY LOOKED AT OUR POLICIES, PROCEDURES, OUR MONITORING PROCESSES. THEY TOOK A SAMPLE OF OUR PROJECTS AND TOOK A LOOK AT OUR WORK PAPERS FROM BEGINNING TO END. 
          THEY ALSO TAKE A CLOSE LOOK AT INDEPENDENT STANDARDS AND TRAINING. 
          AND I JUST WANT TO SAY THAT I'M SO PROUD OF MY TEAM BECAUSE WE HAD NO OBSERVATIONS AT ALL, WHICH IS VERY DIFFICULT TO DO IN OUR ENVIRONMENT. 
          WE HAD NO FINDINGS, NO RECOMMENDATIONS. WE HAD A FULLY PASS RESULT. 
          I DO WANT TO RECOGNIZE FOUR INDIVIDUALS THAT WERE INSTRUMENTAL IN PREPARING FOR THIS. WE PROVIDED MOST OF OUR SUPPORT PRIOR TO THE AUDIT AND THAT WAS ABIGAIL ESTEVES, HOLLY, AND TY. I WANT TO HIGHLIGHT THEM BECAUSE THEY DID A GREAT JOB WORKING WITH THE AUDITORS . OUR AUDIT REPORT IS THERE. 
          IT'S ATTACHED TO THE PACKET IF YOU WANT TO TAKE A LOOK AT THE RESULTS. 
          I JUST WANTED TO PRESENT THAT. THANK YOU. 
          >> VIAGRAN: THANK YOU, BUDDY. THANK YOU SO MUCH FOR ALL THE HARD WORK. JUST HOW YOU'RE WORKING TO MAKE SURE THAT WE ARE KEEPING ACCOUNTABLE AND WE KEEP MOVING THIS CITY FORWARD. 
          I APPRECIATE THIS AND I'M GLAD YOU HAD THE OPPORTUNITY TO PRESENT THE PEER REVIEW RESULTS. DO ANY OF MY OTHER COMMITTEE MEMBERS WANT TO SAY 
          SOMETHING? MISTY. >> SPEARS: I AM JUST SO PROUD OF THIS. I THINK WE CAN'T SAY ENOUGH HOW IMPORTANT THIS TRULY IS. 
          THIS INSTILLS CONFIDENCE IN THE WAY WE OPERATE OUR GOVERNMENT. 
          AND TO THE NON-ACCOUNTING BACKGROUND, IT SEEMS LIKE IT'S NOT THAT BIG OF A DEAL, BUT I GET IT. IT'S A HUGE DEAL AND WE SHOULD BE SO PROUD OF THIS. 
          AND OUR RESIDENTS SHOULD FEEL VERY CONFIDENT IN THE WAY WE ARE PROCESSING ALL THE PROCESSES WE DO WITHIN OUR GOVERNMENT AND WHAT YOU'RE DOING. 
          AND SO I AM JUST THRILLED AND SO PROUD OF YOU. I LOOK FORWARD TO THE ONE -- IS IT THREE YEARS FROM NOW? YOU'VE ALREADY SET A VERY HIGH BAR. 
          THANK YOU FOR DOING THAT. I KNOW IT WAS ALL OF YOUR TEAM. 
          EXCELLENT WORK AND I'M JUST REALLY, REALLY PROUD OF THIS. 
          THANK YOU. >> VIAGRAN: ANY OTHER COMMITTEE MEMBERS? 
          MARC. >> WHYTE: I JUST SECOND THAT. 
          WE ALL KNOW THERE'S A DISTRUST IN THE PUBLIC OF WHAT GOES ON AT ALL LEVELS OF GOVERNMENT. SO THESE RESULTS ARE EXTRAORDINARY. 
          THANK YOU FOR EVERYTHING THAT YOU'VE DONE. TRANSPARENCY, ACCOUNTABILITY HAS GOT TO BE AT THE FOREFRONT OF EVERYTHING WE DO AS A CITY GOVERNMENT AND YOU HELP ENSURE THAT IT IS. YOU AND YOUR TEAM. SO, THANKS. 
          >> VIAGRAN: AND BEN. >> GORZELL: THANK YOU, CHAIR. 
          I JUST WANT TO SAY CONGRATULATIONS, BUDDY, TO YOU AND YOUR ENTIRE TEAM. 
          GREAT RESULTS, GREAT WORK VALIDATING. THE WORK YOU GUYS DO IS SO IMPORTANT FOR US TO IMPROVE THE ORGANIZATION, TO IDENTIFY ISSUES, WHETHER THAT COMES ABOUT THROUGH OUR RISK ASSESSMENT OR WHETHER WE'VE IDENTIFIED SOMETHING AND ASKING YOU TO GO IN AND LOOK AT IT, THAT'S ALL PART OF IMPROVING THE ORGANIZATION FOR HOW WE PROVIDE SERVICES, ALL THE THINGS THAT WE DO. 
          BEING ON THE FINANCE/ACCOUNTING SIDE, I KNOW HOW HARD THIS IS TO ACHIEVE. CONGRATULATIONS AGAIN. ALSO VERY FUN TO SEE THE AUDITOR GET AUDITED, JUST FROM THIS SIDE. [LAUGHTER] 
          >> VIAGRAN: THANK YOU. NOW WE'RE MOVING ON TO ITEM NO. 9. 
          [00:40:03]
AGAIN, THESE ARE FOR BRIEFING. MADAME CLERK, PLEASE READ 
          THE CAPTION FOR ITEM 9. >> CLERK: ITEM NO. 9 IS A BRIEFING ON THE FISCAL YEAR 2026 ANNUAL HIGH PROFILE FORECAST AND PROCUREMENT PROCESS. 
          >> ELLIOTT: MY NAME IS TROY ELLIOTT, I'M THE CHIEF FINANCIAL OFFICER. 
          IT'S THAT TIME OF YEAR AGAIN. EVERY YEAR AT THE BEGINNING OF THE FISCAL YEAR, WE COME IN AND PRESENT THE ANNUAL PROCUREMENT FORECAST. 
          WHAT THIS FORECAST IS MEANT TO DO IS REALLY GIVE Y'ALL SOME INSIGHT INTO THE NUMBER OF PRESENTATIONS THAT ARE GOING TO BE ISSUED THROUGHOUT THE FISCAL YEAR, GIVE Y'ALL AN OPPORTUNITY TO PROVIDE US WITH YOUR INPUT AND FEEDBACK ON ANYTHING YOU SEE HERE. WHEN I TALK ABOUT THE PATH, HOPEFULLY I'LL BE MORE CLEAR ABOUT WHAT I MEAN AS TO WHAT PATH IT'S GOING TO GO THROUGH. 
          THE MEAT OF THE PRESENTATION IS GOING TO BE ON THE PROCUREMENT FORECAST. 
          TRADITIONALLY, WE HAVE PRESENTED JUST THE HIGH-PROFILE COMPONENTS, MUCH SMALLER. I'LL GO THROUGH WHAT A HIGH-PROFILE CONTRACT IS IN TERMS OF ITS DEFINITION. THIS YEAR WE HAVE EXPANDED THAT. 
          AS A RESULT, COUNCIL APPROVED THE CITY MANAGER DELEGATION. 
          AS PART OF THAT CITY MANAGER DELEGATION, WE COMMITTED TO COMING FORWARD TO YOU WITH AN EXPANDED FORECAST, 50,000 AND ABOVE. IN FRONT OF YOU THIS MORNING, PASSED OUT, A LOT OF DETAIL. THIS ACTUALLY HOUSES 382 SOLICITATIONS THAT WE ANTICIPATE ARE GOING TO BE ISSUED. 
          IT'S GOING TO BE BROKEN DOWN TO TWO COMPONENTS. THOSE DESIGNED AS HIGH-PROFILE AND OUR RECOMMENDED PATH THAT IT'S GOING TO TAKE. 
          ALSO THOSE THAT ARE NOT HIGH-PROFILE AND HOW THOSE ARE GOING TO BE DISTRIBUTED BETWEEN THE CITY COUNCIL AGENDA AND THE CITY MANAGER DELEGATION. 
          A LOT OF WORK GOES INTO PREPARING THIS FORECAST. I WOULD LIKE TO THANK ANGELICA AND ESPECIALLY LAURA. SHE IS IN CHARGE OF WORKING WITH ALL THE CITY DEPARTMENTS AND BRINGING THIS ALL TOGETHER TO HAVE A VIABLE FORECAST TO ACTUALLY PRESENT TO YOU. I THOUGHT IT WOULD BE VALUABLE, WITH THE NEW COMMITTEE MEMBERS AND NEW ELECTED OFFICIALS, MAYBE TO DO A LITTLE PROCUREMENT 101 UPFRONT, KIND OF TALKING ABOUT PROCUREMENT AT A VERY HIGH LEVEL. WE COULD SPEND ALL DAY TALKING ABOUT IT BUT I DON'T THINK Y'ALL WANT TO DO THAT. KIND OF GIVING YOU THAT HIGH VISIBILITY INTO WHAT IS PROCUREMENT, WHAT WE DO. HOW DO WE PROCURE. WHAT ARE THE COUNCIL POLICIES AND WHAT THE PROCESS IS. THEN GO TO THE FORECAST AND WRAP UP WITH A CHARGE FROM THE MAYOR WITH EWDC AND WHAT OUR RECOMMENDATIONS WERE TO THAT COMMITTEE AND HOW WE'RE MOVING FORWARD. SO, AT A VERY, VERY HIGH LEVEL, THESE ARE THE TYPE OF PROCUREMENTS THAT WE ISSUE ON A DAY-TO-DAY BASIS. 
          THERE'S ROUGHLY GOING TO BE THESE FIVE. PROCUREMENT IS HIGHLY REGULATED FROM THE STATE OF TEXAS. I WON'T GO INTO THE DIFFERENT STATUTES BUT AS YOU LOOK THROUGH EACH OF THESE PROCUREMENT METHODS, WE REFERENCE A STATE STATUTE THAT GOVERNS THOSE PROCUREMENTS. 
          INVITATION FOR BID IS WHAT IT SOUNDS LIKE. THE LOWEST RESPONSIBLE BIDDER WINS THAT BID. THERE IS NO DISCRETION ON THOSE TYPES OF BIDS. 
          IT'S GOING TO BE USED PREDOMINANTLY FOR OFFICE SUPPLIES, FLEET, FURNITURE. 
          THE NEXT ITEM IS A REQUEST FOR COMPETITIVE SEALED PROPOSALS. 
          YOU WILL HEAR THIS BEING CALLED A BEST-VALUE BID. IT'S STATUTORILY DRIVEN AS WELL. PRIMARILY ITS FACTOR IS GOING TO BE PRICE BUT STATE STATUTE ALLOWS US TO CONSIDER OTHER FACTORS SUCH AS EXPERIENCE, BACKGROUND, AND PLAN. THESE ARE GOING TO BE USED FOR THINGS THAT HAVE A SERVICE COMPONENT LIKE JANITORIAL, LANDSCAPING, ELECTRICAL, PLUMBING, AND HVAC. WE ALSO HAVE REQUEST FOR QUALIFICATIONS. 
          IT'S JUST AS IT SOUNDS. THIS PROCUREMENT IS BASED ON AND CONSIDERS THE QUALIFICATIONS OF A FIRM OR AN INDIVIDUAL. IT'S GOING TO BE USED FOR PROFESSIONAL AREAS SUCH AS PLANNING, A&E, AND LAND SURVEYING. 
          IT'S ALSO ALTERNATE DELIVERY COMMUNICATION SUCH AS OUR CMAR, OUR DESIGN-BUILD. 
          THE SECOND PART OF THOSE SOLICITATIONS MOVED FROM REQUESTS FOR QUALIFICATIONS TO THE NEXT AS A REQUEST FOR PROPOSAL. THAT IS THE SECOND PHASE OF THOSE TYPES OF ALTERNATIVE DELIVERY SOLICITATION. THE RFP CAN BE STATUTORY OR DISCRETIONARY. YOU'RE GOING TO SEE AN EVALUATION MATRIX SUCH AS QUALIFICATION, PROPOSED PLAN, PRICING, LOCAL, SBEDA OUT OF A 100-POINT SCORE. 
          TRADITIONAL USE FOR CONSULTING, MARKETING, CONCESSIONS, AND LICENSE 
          [00:45:03]
AGREEMENTS. LASTLY IS A REQUEST FOR OFFER. 
          THIS IS GOING TO BE USED FOR ITEMS MOSTLY IN THE PUBLIC SAFETY AREAS AND MAYBE IN FLEET BECAUSE THERE MAY BE A SPECIFIC TYPE OF BUNKER GEAR THAT THEY HAVE TESTED AND IS ACCEPTABLE FOR THE SAFETY OF THE FIREFIGHTERS. SO THAT MAY BE BRAND-SPECIFIC. STATE LAW GIVES US THE ABILITY TO ISSUE AN EXEMPTION TO GO BUY THAT SPECIFIC TYPE OF BUNKER GEAR. 
          ALSO ALLOWS US TO GO TO COOPERATIVES WHERE COOPERATIVES ARE A GROUP OF PROCUREMENTS THAT HAVE BEEN PREVIOUSLY PROCURED AND WE CAN ACTUALLY PARTICIPATE IN THOSE COOPERATIVES. SO THOSE ARE THE BASIC TYPES OF PROCUREMENTS THAT WE ARE GOING TO USE ON A DAY-TO-DAY BASIS. MOVING INTO SOME OF OUR PROGRAMS. WE DO HAVE -- COUNCIL ADOPTED A LOCAL PREFERENCE PROGRAM. THE LOCAL PREFERENCE PROGRAM WAS REALLY GIVEN BIRTH BY STATE STATUTE. IT ORIGINATES BY STATE STATUTE THROUGH THE STATE OF TEXAS. MY DEPARTMENT ADMINISTERS THIS PROGRAM. 
          IT IS A GEOGRAPHIC PREFERENCE, MEANING THAT BUSINESSES MUST BE LOCATED WITHIN THE CITY OF SAN ANTONIO LIMITS, AND THAT'S ACTUALLY IN STATE STATUTE FOR LOW BID. WE HAVE ADOPTED THAT BY ORDINANCE INTO OTHER DISCRETIONARY BIDDING PROPOSALS AS WELL. ONE OF THE THINGS WE NOTICED --S SOMETHING WE HAD RECOMMENDED TO COUNCIL -- IS THAT WITH OUR LOCAL PREFERENCE ORDINANCE WE USE AN ESTABLISHED PLACE OF BUSINESS FOR AT LEAST ONE YEAR WITHIN THE SAN ANTONIO LIMITS FOR BUSINESSES THAT ARE HEADQUARTERED HERE. 
          THE REASON IS THAT WE DIDN'T WANT AN OPPORTUNITY, WHEN WE FIRST PUT THE ORDINANCE IN PLACE, FOR COMPANIES TO COME IN, ESTABLISH A BUSINESS DAY ONE IN SAN ANTONIO, AND TO BE ABLE TO PARTICIPATE ON OUR BIDS. WE WANTED THEM TO ACTUALLY HAVE A PLACE OF BUSINESS HERE FOR ONE YEAR AND HAVE ROOTS IN THE CITY OF SAN ANTONIO. THE LOCAL PREFERENCE ORDINANCE REALLY IS -- I'LL CALL IT LIKE AN ECONOMIC INCENTIVE. IT ACTUALLY IDENTIFIES AND PROVIDES A PREFERENCE TO LOCAL BUSINESSES. SO BUSINESSES AND THEIR EMPLOYEES WHO LIVE IN THE CITY OF SAN ANTONIO, THEY PAY PROPERTY TAX AND THEY PAY SALES TAXES, INVESTING IN THE CITY OF SAN ANTONIO THROUGH THIS LOCAL PREFERENCE PROGRAM. IT WAS ORIGINALLY PUT IN PLACE IN 2013. 
          WE HAVE MULTIPLE CHANGES. WE INCREASED THE PRICE PREFERENCE FROM 3% TO 5% TO BRING IT MORE IN ALIGNMENT WITH STATE STATUTE. WE MODIFIED TO MAKE IT APPLICABLE TO FEDERAL AND STATE-FUNDED CONTRACTS. WE HAVE TO BASICALLY, WHENEVER WE DO A SOLICITATION THAT HAS FEDERAL OR STATE FUNDING, WE HAVE TO GO TO THAT GRANTOR AND MAKE SURE THAT THEY ARE COMFORTABLE WITH A GEOGRAPHIC PREFERENCE. BASED ON THAT CONVERSATION, THAT DOCUMENT FROM THE AGENCY, THEN WE EITHER APPLY IT OR WE DON'T. ALSO, I THINK ABOUT TWO YEARS AGO, WE ALSO MODIFIED THE LOCAL PREFERENCE, MAKING IT APPLICABLE TO NONPROFITS. 
          THIS CHANGE ACTUALLY MAKES IT ACCEPTABLE TO GRANT A LOCAL PREFERENCE TO LOCAL NONPROFITS WHEN THEY'RE COMPETING AGAINST OTHER NONPROFITS ACROSS THE UNITED STATES. KIND OF MORE SPECIFICS ON THE LOCAL PREFERENCE PROGRAM. THE LOW BID, AS I MENTIONED, THAT IS PERMITTED UNDER STATE STATUTE. IT GRANTS A 5% PRICE PREFERENCE FOR THOSE SOLICITATIONS OR BIDS BETWEEN $50,000 AND $500,000. 
          WHAT THAT PRICE PREFERENCE MEANS IS THAT IF YOU HAVE A LOW BID THAT COMES IN AND THERE IS A NON-LOCAL VENDOR WHO HAS THE LOW BID, IT ALLOWS US -- AND THERE IS A LOCAL VENDOR WITHIN FIVE PERCENTAGE POINTS OF THE BID PRICE FROM THAT NON-LOCAL, IT ALLOWS US TO GRANT, AWARD THE BID TO THAT LOCAL VENDOR, EVEN THOUGH THEY MAY NOT BE THE LOWEST BID. THEY JUST NEED TO BE WITHIN THE 5% VARIANCE. 
          IT MAY COST US A LITTLE BIT BUT UNDER STATE LAW WE CAN AWARD THAT BID TO THAT LOCAL VENDOR, EVEN THOUGH IT MAY COST A LITTLE BIT MORE, UP TO 5%. 
          FOR DISCRETIONARY SOLICITATIONS, NOT GOVERNED BY STATUTE. 
          THESE ARE PREDOMINANTLY PROFESSIONAL SERVICES AND CONCESSION CONTRACTS. 
          10 POINTS ARE AWARDED TO LOCAL BIDDERS HEADQUARTERED IN CITY LIMITS. 
          THERE'S ALSO AN OPPORTUNITY FOR THEM TO EARN 5 POINTS. IF YOU HAVE A SUBSTANTIAL BUSINESS PRESENCE IN SAN ANTONIO. AND WE DEFINE THAT SUBSTANTIAL BUSINESS PRESENCE AS BIDDERS FROM WHICH AT LEAST 20% OF THEIR FULL-TIME OR PART-TIME AND CONTRACT EMPLOYEES ARE BASED IN THE CITY. 
          OR HAVE A MINIMUM OF 100 EMPLOYEES IN THE INCORPORATED CITY LIMITS. 
          AND WE VALIDATE THAT ON EVERY PROCUREMENT THAT COMES THROUGH. 
          A LOT OF OTHER PROGRAMS THAT YOU MAY OR MAY NOT BE FAMILIAR WITH. 
          WE HAVE A VETERAN-OWNED AND SMALL BUSINESS PREFERENCE PROGRAM. 
          [00:50:03]
IT IS ALSO ADMINISTERED BY THE FINANCE DEPARTMENT EFFECTIVE JANUARY 2014. 
          THERE IS NO GEOGRAPHIC PREFERENCE OR LIMIT ON THIS. IF YOU ARE A VETERAN AND MEET THE DEFINITION OF A VETERAN, THEN IT CAN BE APPLIED. 
          THIS ONE GRANTS UP TO FIVE PREFERENCE POINTS. ONLY ON DISCRETIONARY CONTRACTS NOT GOVERNED BY STATUTE. YOU HAVE TO HAVE AT LEAST 51% OWNERSHIP OF ONE OR MORE VETERANS THAT COMPRISE THE OWNERSHIP OF THAT COMPANY. 
          THE OTHER TWO -- I WON'T GO INTO A LOT OF DETAIL. I THINK A LOT OF Y'ALL ARE FAMILIAR WITH THIS. WE HAVE OUR SBEDA PROGRAM THAT FOCUSES ON THE SMALL BUSINESS ENTERPRISES AND EMERGING SMALL BUSINESS ENTERPRISES. 
          20 PREFERENCE POINTS CAN BE AWARDED. BUT ALSO PROVIDES SUBCONTRACTING OPPORTUNITIES TO SMALL AND EMERGING BUSINESSES AS WELL. 
          THEN WE HAVE THE DBE OR DISADVANTAGED BUSINESS ENTERPRISE. 
          AND THE AIRPORT CONCESSIONS DBE PROGRAM THAT ARE SOLELY APPLICABLE TO FEDERAL FUNDING FROM THE DEPARTMENT OF TRANSPORTATION AND THE FEDERAL AVIATION ADMINISTRATION. YOU'VE HEARD ME SAY MANY TIMES THAT IT MAY OR MAY NOT BE APPLICABLE BECAUSE YOU HAVE CERTAIN AREAS THAT STATE STATUTE MAY APPLY AND MAY NOT EXPRESSLY AUTHORIZE THE USE OF A CERTAIN PREFERENCE. 
          I WON'T GO THROUGH ALL THIS BUT THIS IS REALLY JUST TO ILLUSTRATE THAT IT IS SOMEWHAT COMPLICATED, AS WE NAVIGATE THE PROCUREMENT PROCESS -- AND I'LL FOCUS ON THE LOCAL PREFERENCE PROGRAM. SO AS I MENTIONED, INVITATIONS FOR BID IS ALLOWED UNDER STATE STATUTE. REQUESTS FOR OFFERS, IF IT IS REGULATED BY STATE STATUTE, THEN IT WOULD NOT BE APPLICABLE. 
          IT'S ONLY FOR THOSE THAT ARE NOT REGULATED OR COVERED BY STATE STATUTE. 
          REQUESTS FOR COMPETITIVE SEALED PROPOSALS BASED ON THE STATUTE. 
          IT DOES NOT ALLOW FOR THE USE OF A LOCAL PREFERENCE, SO IT'S NOT ALLOWABLE. 
          A LOT OF TIMES I GET QUESTIONS THROUGH THIS BODY AND EVEN COUNCIL, WHY CAN'T WE APPLY A LOCAL PREFERENCE? AND NINE TIMES OUT OF TEN IT'S GOING TO BE BECAUSE STATE LAW DOES NOT ALLOW IT. A LITTLE BIT OF BACKGROUND -- AND I CAN'T REMEMBER -- IT'S BEEN A WHILE. BUT WE DID GO TO THE STATE AND WE HAD A LEGISLATIVE INITIATIVE THAT SOUGHT TO EXPAND THE LOCAL PREFERENCE PROGRAM AND MAKE IT APPLICABLE TO OUR REQUEST FOR COMPETITIVE SEALED PROPOSALS. WE WORKED THROUGH IT, GOT TO THE GOVERNOR'S DESK, PASSED THROUGH BOTH SIDES OF THE LEGISLATURE AND IT WAS VETOED BECAUSE THE PREMISE THAT CITIZENS OF SAN ANTONIO AND OTHER CITIES IN THE STATE OF TEXAS REALLY SHOULD BE GUARANTEED THAT THEY ARE GETTING THE BEST PRICE AND THE BEST SERVICE. 
          AND SO -- AND WE HAVE NOT BEEN BACK TO THE LEGISLATURE TO TRY SINCE THEN. 
          SO LOOKING AT THIS AS A GUIDE, YOU CAN KIND OF SEE IT'S KIND OF A -- IT'S HARD TO NAVIGATE. WE NEED TO NAVIGATE THIS AS FAR AS WHERE IT CAN BE APPLIED AND CAN'T BE APPLIED. A LOT OF TIMES I GET ASKED TOO, FROM TIME TO TIME, IT'S LIKE HOW DO WE INCREASE THE NUMBER OF RESPONDENTS THAT WE HAVE IN OUR SOLICITATIONS? WE, WORKING WITH THE ECONOMIC DEVELOPMENT DEPARTMENT AND OTHER ORGANIZATIONS, DO A LOT OF WORK IN OUR OUTREACH EFFORTS. REALLY TO MAXIMIZE VENDOR AWARENESS. WE FOCUS ON OUR DIGITAL AND ONLINE PLATFORMS. I'LL TALK MORE ABOUT THAT IN A SECOND. WE LOOK AT STATE AND FEDERAL RESOURCES AND HOW WE CAN ACTUALLY EXPAND AND GET OUR SOLICITATIONS OUT TO A BROADER -- CAST A BROADER NET AND ACTUALLY HAVE OUTREACH FOR THOSE VENDORS. 
          THROUGH THE MEDIA AND PUBLICATIONS, THROUGH THE "SAN ANTONIO EXPRESS NEWS," HEARTBEAT, AND OUR PUBLIC ACCESS TELEVISION THROUGH TVSA. 
          THEN WE DO DIRECT AND TARGETED OUTREACH . ONE OF THE THINGS I'LL MENTION UNDER THE DIGITAL AND ONLINE PLATFORMS, HAVING THE DISCUSSION TODAY ABOUT THE HIGH-PROFILE FORECAST, THIS FORECAST WILL BE PUBLISHED IN WORKING WITH THE ECONOMIC DEVELOPMENT DEPARTMENT, TO ACTUALLY MAKE IT AVAILABLE FOR PEOPLE WHO WANT TO DO BUSINESS -- OR FIRMS THAT WANT TO DO BUSINESS WITH THE CITY OF SAN ANTONIO. THIS WILL BE PUBLISHED OUT THERE WITH KIND OF THE INTENDED TIMELINES THAT WE'RE GOING TO ISSUE A SOLICITATION. 
          SO THEY CAN PLAN, IF THEY'RE INTERESTED, TO ACTUALLY COMPETE FOR THE CITY CONTRACTS. WE ALSO HAVE THE CITY OF SAN ANTONIO CENTRAL VENDOR REGISTRY. IF YOU'RE INTERESTED IN DOING BUSINESS WITH THE CITY OF SAN ANTONIO, YOU CAN PROACTIVELY REGISTER. YOU REGISTER FOR AN NIGP CODE AND IN THE EVENT THAT WE ARE ISSUING A SOLICITATION THAT CORRESPONDS WITH THAT NIGP CODE, THEY WILL AUTOMATICALLY GET NOTICE THROUGH E-MAILS THAT THIS IS BECOMING AVAILABLE AND IT'S AN OPPORTUNITY TO PARTICIPATE. THEN WE HAVE THE OTHER AREAS --A LOT OF DETAIL. 
          WE DO OUTREACH TO MAKE SURE THERE'S AWARENESS OUT THERE. AND IF THEY DO WANT TO 
          [00:55:04]
PARTICIPATE, IT'S AVAILABLE. SOME OTHER REQUIREMENTS. WE'VE TALKED ABOUT THIS QUITE A BIT. KEY REQUIREMENTS. SO FOR A SOLICITATION THAT IS GOING TO BE DESIGNATED HIGH-PROFILE, YOU HAVE THE PROHIBITED CAMPAIGN CONTRIBUTIONS. THOSE START ON THE TENTH BUSINESS DAY AFTER RELEASE OF THE SOLICITATION AND EXTENDS THROUGH THE 30TH CALENDAR DAY FOLLOWING THE CITY COUNCIL APPROVAL. THE OTHER THING WE CALL THE BLACKOUT PERIOD. 
          THERE'S ALSO RESTRICTIONS ON COMMUNICATIONS AND THAT EXPANDS FOR ALL SOLICITATIONS. APPLIES TO CITY OFFICIALS FROM THE RELEASE DATE UNTIL THE CONTRACT IS POSTED ON THE CITY COUNCIL A SESSION AGENDA. 
          AND FOR CITY EMPLOYEES, IT'S FROM THE RELEASE DATE UNTIL THE CONTRACT IS APPROVED AT AN A SESSION. ABOVE AND BEYOND THESE REQUIREMENTS, THERE ARE SEVERAL OTHER REQUIREMENTS SUCH AS THE HEAT ILLNESS PROGRAMS, RESPONSIBLE BIDDERS. THERE'S A NUMBER OF STATE REQUIREMENTS THAT WE HAVE TO INCLUDE IN OUR SOLICITATIONS AS WELL. BUT THOSE ARE THE PRIMARY AREAS I WANTED TO HIGHLIGHT. I MENTIONED THE HIGH-PROFILE DEFINITION. 
          WHAT IS A HIGH-PROFILE CONTRACT? BASED ON WORKING WITH THE COUNCIL IN THE PAST, A HIGH-PROFILE CONTRACT ARE GOING TO BE DISCRETIONARY CONTRACTS VALUED AT $1 MILLION OR MORE. AND THE KEYWORD THERE IS "DISCRETIONARY." AS MENTIONED, LOW-BID CONTRACTS ARE BASED ON PRICE AND SPECIFICATION. THERE REALLY IS NO DISCRETION THERE SO WE ONLY FOCUS ON THE DISCRETIONARY CONTRACTS. THE OTHER CRITERIA -- 
          >> I JUST WANTED TO CLARIFY FOR THE COMMITTEE THAT WHILE THERE'S LITTLE TO NO DISCRETION ON THE LOW-BID CONTRACTS, WE DID PASS THE RESPONSIBLE BIDDER ORDINANCE. SO AT TIMES WE CAN LOOK AT THAT ACTIVITY FROM THAT CONTRACTOR AND THEY CAN BE DENIED THE LOW BID. SO I JUST WANTED TO CLARIFY THAT WHILE MOST OF THE TIME THERE'S LITTLE TO NO DISCRETION. 
          ON THE LOW-BID SIDE THERE'S THAT ONE OPPORTUNITY. SORRY, TROY. 
          I WAS GOING TO JUMP IN SOONER. >> ELLIOTT: NO PROBLEM. 
          THANKS FOR THAT CLARIFICATION, RAY. GOING BACK TO HIGH-PROFILE DEFINITION. IF YOU MEET ONE OR THREE OF THESE CRITERIA. 
          WE ALSO HAVE THOSE CONTRACTS AND WE HAVE A HIGH LEVEL OF COMMUNITY INTEREST. 
          OR THEY MAY BE HIGHLY COMPLEX OR TECHNICAL IN NATURE. 
          OUR CONTRACT TERMS AND CONDITIONS THAT ARE NON-STANDARD ARE COMPLEX. 
          SO IF YOU MEET ANY ONE OF THESE THREE THEN TYPICALLY THEY WILL BE DESIGNATED HIGH-PROFILE. THE PROHIBITION ON CAMPAIGN CONTRIBUTIONS WOULD BE APPLICABLE. AND THEN THIS WILL ALSO SET THE TONE FOR THE PATH THAT THESE CONTRACTS ACTUALLY FOLLOW, ON THE NEXT SEVERAL SLIDES. 
          THE OTHER THING IN WORKING WITH HIGH-PROFILE CONTRACTS IS THERE ARE A NUMBER OF SOLICITATIONS THAT HAVE CHARACTERISTICS THAT MAY LEND ITSELF TO A B SESSION. 
          THESE ARE TYPICALLY GOING TO BE THOSE CONTRACTS OR SOLICITATIONS THAT HAVE A VALUE OVER $25 MILLION. THEY HAVE EXCEPTIONAL POLICY OR PUBLIC SAFETY IMPLICATIONS. CONTRACT TERMS ARE TYPICALLY TEN YEARS OR MORE. 
          AND THEN YOU HAVE THE COMMUNITY STAKEHOLDER IMPACT OR INTEREST. 
          IF IT MEETS THOSE CRITERIA, WE'LL BE RECOMMENDING THOSE FOR B SESSION. 
          THERE'S ALSO PROFESSIONAL JUDGMENT. BECAUSE THERE MAY BE SOME CONTRACTS THAT MAY BE OVER $25 MILLION -- AND YOU'LL SEE SOME OF THOSE HERE IN A COUPLE OF MINUTES. BUT BASED ON PROFESSIONAL JUDGMENT, WE WON'T RECOMMEND THEM FOR A B SESSION BECAUSE THEY'RE PRETTY ROUTINE IN NATURE. 
          AND THOSE WILL BE ON THE AUDIT COMMITTEE OR GO DIRECTLY TO THE CONSENT AGENDA. SO HIGH-PROFILE PROCESS REALLY DIFFERS FOR TWO KEY AREAS. ONE, IT INCLUDES A PRE-SOLICITATION BRIEFING OR A POST-SOLICITATION BRIEFING. TODAY, THE PROCESS REALLY STARTS WITH THE ANNUAL HIGH-PROFILE PROCUREMENT PROCESS WE'RE GOING TO BE INTRODUCING TODAY. WE WORKED WITH THE CITY SOLICITATIONS, PUT TOGETHER THE REQUIREMENTS, DEVELOP THE SOLICITATION DOCUMENT. 
          AND WHEN ALL THAT IS DONE, WE SCHEDULE IT FOR A PRE-SOLICITATION BRIEFING. 
          TYPICALLY IT'S GOING TO BE TO THE AUDIT COMMITTEE OR A B SESSION. 
          THAT PRE-SOLICITATION BRIEFING IS GOING TO HIGHLIGHT ALL THE REQUIREMENTS OF THE SOLICITATION, WHO IS GOING TO SERVE ON THE EVALUATION COMMITTEE, AND PROVIDE THE AUDIT COMMITTEE OR B SESSION AN OPPORTUNITY TO PROVIDE INPUT INTO THOSE SOLICITATIONS BEFORE WE ACTUALLY RELEASE IT. 
          ONCE WE RELEASE IT, THE SOLICITATION IS USUALLY OUT ON THE STREET FOR ABOUT 45 DAYS. THE SOLICITATION COMES IN. WE HAVE AN EVALUATION TEAM THAT EVALUATES IT. WE RANK THE FIRMS. A FIRM IS SELECTED. 
          AND WE ENTER INTO THE CONTRACT NEGOTIATIONS. ONCE THOSE ITEMS ARE COMPLETE, WE WRAP IT UP. WE BRING IT BACK TO THE AUDIT COMMITTEE, FOR EXAMPLE. WE GO THROUGH ALL THE KEY POINTS, LOOK FOR INPUT. 
          [01:00:03]
AND IF THE AUDIT COMMITTEE OR B SESSION IS AGREEABLE WITH IT, THEN WE MOVE IT FORWARD TO THE FULL CITY COUNCIL FOR APPROVAL. THE PRE-SOLICITATION BRIEFINGS AND POST-SOLICITATION BRIEFINGS ARE NOT ON THOSE ITEMS THAT ARE NOT INCLUDED AS A HIGH-PROFILE. I MENTIONED WHAT PATHS THAT THESE HIGH-PROFILE CONTRACTS OR CONTRACT MAY ACTUALLY GO THROUGH. 
          AND THERE ARE REALLY FOUR PATHS. ONE, BASED ON THE CRITERIA AND THE DEFINITION I SHARED WITH YOU. YOU HAVE THOSE SELECTED OR CHOSEN FOR A CITY COUNCIL B SESSION. THAT WILL MEET THOSE CRITERIA, TYPICALLY OVER $25 MILLION AND IT MEETS THE OTHER SELECT HIGH-PROFILE CRITERIA. YOU HAVE THOSE THAT HAVE BEEN SELECTED FOR AN AVIATION HIGH-PROFILE B SESSION. WE DID THAT INTENTIONALLY BECAUSE THE TERMINAL DEVELOPMENT PROGRAM IS VERY AGGRESSIVE. 
          TO THE EXTENT WE HAVE DELAYS, IT HAS A FAIRLY SIGNIFICANT COST IMPACT ON A DAILY BASIS. SO WE WANTED TO HIGHLIGHT THOSE THROUGH A SPECIAL B SESSION FOR THE AIRPORT. THEY COME ON A ROUTINE BASIS. 
          THEN YOU HAVE THOSE GOING THROUGH THE AUDIT COMMITTEE PATH. 
          YOU HAVE THE ON-CALL BETWEEN 5 TO $25 MILLION. THERE ARE ALSO CHANGES PUT IN PLACE BY THIS COMMITTEE BECAUSE OF THE ROUTINE NATURE ON AN ON-CALL OR ANNUAL CONTRACT. THESE ARE EXEMPTED BECAUSE ALTHOUGH THEY MAY BE LARGE DOLLAR AMOUNTS, THEY'RE FAIRLY ROUTINE AND THERE ARE NOT ANY POLICY ISSUES. 
          YOU ARE SEEING A COUPLE I'M RECOMMENDING GO THROUGH THE AUDIT COMMITTEE. 
          IT WILL BE UP TO Y'ALL, WHETHER YOU WANT TO ACCEPT THAT RECOMMENDATION OR, BECAUSE OF THEIR GENERAL NATURE, MOVE THEM BACK TO THE CONSENT AGENDA. 
          THEN WE HAVE THE CONSENT AGENDA FOR THE HIGH-PROFILE RANGING FROM $1 MILLION TO $5 MILLION. SO THIS IS WHERE WE ACTUALLY START DIVING INTO THE ANNUAL PROCUREMENT FORECAST. AS I MENTIONED, THESE NEXT FEW SLIDES, ALL THE DETAIL WILL BE IN THE DOCUMENT THAT WAS PASSED OUT. THIS IS GOING TO BE AT A VERY, VERY HIGH LEVEL AND I'M GOING TO TRY TO MOVE THROUGH IT VERY QUICKLY. 
          BUT THE ANNUAL PROCUREMENT FORECAST FOR FISCAL YEAR '26 TRIES TO IDENTIFY ALL SOLICITATIONS OVER $50,000. IT IS PRESENTED ANNUALLY, TYPICALLY AT THE BEGINNING OF THE YEAR, TO GIVE YOU AN IDEA OF WHAT'S COMING AND TO SEEK YOUR INPUT. 
          WE HAVE COORDINATED THIS WITH ALL THE DEPARTMENTS, EXECUTIVE LEADERSHIP, AND THE ECONOMIC DEVELOPMENT DEPARTMENT. TODAY THERE'S A TOTAL OF 382 SOLICITATIONS THAT WE ESTIMATE THAT WE'RE GOING TO BE ISSUING DURING THE FISCAL YEAR. OUTSIDE OF THAT, UNDERNEATH $50,000 THERE'S AT LEAST ANOTHER 12,000 PRETEXT OR SOLICITATIONS THAT WILL BE DONE ABOVE AND BEYOND THIS. 
          OF COURSE WE ALSO HAVE THE PRIOR YEAR SOLICITATIONS THAT ARE STILL RUNNING THROUGH THE PROCESS . OF THOSE 382 SOLICITATIONS, 82 SOLICITATIONS MEET THE DEFINITION OF HIGH-PROFILE. I'LL HIGHLIGHT THOSE IN A MINUTE. 
          THE REMAINING 300 WILL BE GOING DIRECTLY TO THE CITY COUNCIL CONSENT AGENDA OR THEY WILL BE RUNNING THROUGH THE CITY MANAGER DELEGATION. OF THOSE 82 SOLICITATIONS THAT MEET THE HIGH-PROFILE DEFINITION, WE'RE RECOMMENDING SOME OF THOSE BE IDENTIFIED FOR DIRECT CITY COUNCIL B SESSIONS. 4 THAT WOULD RUN THROUGH THE AVIATION CITY COUNCIL B SESSION. 22 FOR THIS BODY TO CONSIDER AS A PRE AND A POST THROUGH AUDIT COMMITTEE BRIEFINGS. AND THEN 49 TO BE PLACED DIRECTLY ON THE CITY COUNCIL CONSENT AGENDA . AS I MENTIONED, AND JUST TO HIGHLIGHT. FOR THE AUDIT COMMITTEE, THERE'S 22 IDENTIFIED. 
          THAT ACTUALLY MEANS 44 PRESENTATIONS BECAUSE WE WOULD COME TO YOU AS A PRE AND WRAP IT UP AS A POST ON THE BACK END. THERE WOULD BE 44 PRESENTATIONS OUT OF THESE 22 SOLICITATIONS THAT ARE GOING TO BE CONDUCTED. 
          SO FOR THOSE HIGH-PROFILE INDIVIDUAL B SESSIONS, WE ARE RECOMMENDING JUST BASED ON THE CRITERIA THAT WE HIGHLIGHTED, ANIMAL CARE SERVICES, THE HIGH-VOLUME PARTNERSHIP. FOR CENTER CITY, THE RIVER WALK IMPROVEMENTS AT 2.7. 
          THIS IS THE SECOND PART THAT THESE RIVER WALK IMPROVEMENTS WILL BE IDENTIFIED AS PART OF THE RIVER WALK STRATEGIC PLAN. THEN WE HAVE THE COMMUNICATIONS ENGAGEMENT. THIS IS A NEW CONTRACT. THIS IS ON-CALL MARKETING AND COMMUNICATION SERVICES. BASED ON THE DEPARTMENT REQUIREMENTS, THEY GO OUT AND WE DO A SOLICITATION FOR DEPARTMENTS FOR AN INDIVIDUAL BASIS. 
          THIS IS WRAPPING IN ALL THE MARKETING AND CITY-WIDE COMMUNICATIONS INTO BUNDLING THEM INTO ONE CONTRACT SO THAT, ONE, WE HAVE A BETTER MANAGEMENT OF IT UNDER THE UMBRELLA OF COMMUNICATIONS AND ENGAGEMENT. THERE WILL STILL BE A LOT OF OPPORTUNITY TO SELECT MULTIPLE FIRMS AND DEBUNDLE. BUT FROM A MANAGEMENT STANDPOINT, IT GIVES US BETTER VISIBILITY AND BETTER MANAGEMENT. 
          THEN YOU HAVE SEEN THESE IN THE PAST WITH NEIGHBORHOOD AND HOUSING SERVICES. 
          YOU HAVE THE AFFORDABLE MULTIFAMILY HOUSING GAP IN A SINGLE FAMILY. 
          COMMUNITY LAND TRUST. ALSO THE RESIDENTIAL REHAB CONTRACTORS OF $67 MILLION 
          [01:05:05]
TO B SESSION. VERY QUICKLY ON THE AVIATION B SESSION, WE HAVE THE FOOD AND BEVERAGE RETAIL PRIME CONCESSIONAIRE. THIS IS FOR THE NEW TERMINAL, ONCE IT OPENS, PROVIDING THOSE CONCESSIONS. AND THE OTHER ONE I WOULD HIGHLIGHT HERE IS THE ADVERTISING CONCESSION OF $10 MILLION. 
          THE ANNUAL CONTRACT IS HERE, JUST BECAUSE IT'S A FAIRLY LARGE AMOUNT. 
          BUT IT'S FAIRLY ROUTINE IN NATURE. THAT COULD BE SOMETHING WE COULD DROP OFF THIS LIST, IF WE NEEDED TO. AS FAR AS THOSE THAT WE'RE RECOMMNDING TO COME TO THIS BODY FOR AUDIT COMMITTEE BRIEFINGS, CAPITAL DELIVERY WILL BE HERE QUITE A BIT. THE ONES I HIGHLIGHTED HERE, BRACKENRIDGE PARK FOR $14 MILLION. TOWARDS THE MIDDLE, YOU HAVE THREE FIRE STATIONS, 10, 33, AND 21. AND THEN THE COMMUNITY CENTER, $8.3 MILLION. 
          ABOVE AND BEYOND CAPITAL DELIVERY FOR THE AUDIT COMMITTEE. 
          WE'RE RECOMMENDING BRINGING, FOR THE PARKING ACCESS AND REVENUE CONTROL SYSTEM. 
          THIS IS REPLACING ALL THE SOFTWARE AND OUTDATED EQUIPMENT IN OUR PARKING GARAGES AND IN OUR SURFACE AND ON-STREET PARKING. FOR THE CITY CLERK, WE HAVE THE PRESERVATION AND DIGITALIZATION OF OUR CITY RECORDS. 
          THIS NEXT ONE WITH CONVENTION CENTER AND SPORTS, DUE TO THE DOLLAR VALUE, IT IS A RECOMMENDATION BUT IT IS AN ANNUAL CONTRACT. 
          THIS IS ONE THAT Y'ALL WANTED TO DEFER, WE COULD DO THAT. 
          IT IS FAIRLY ROUTINE IN NATURE. UNDER FINANCE, WE HAVE THE EXECUTIVE PROGRAM MANAGER. THIS IS ABOUT $10 MILLION. THE EXECUTIVE PROGRAM MANAGER IS A TOOL THAT WE USE ON OUR LARGE CONSTRUCTION CONTRACTS. 
          TODAY WE'RE USING IT ON THE TERMINAL DEVELOPMENT PROGRAM OUT AT THE AIRPORT. 
          THIS EXECUTIVE PROGRAM MANAGER PROVIDES THAT PROJECT MANAGER AND SUPPORT. 
          WE WOULD BE LOOKING AT EXTENDING THIS TO SOMETHING SIMILAR TO THE ENTERTAINMENT DISTRICT TO MANAGE ALL THE LOGISTICS FOR ALL THE CONSTRUCTION ACTIVITIES THAT WOULD BE GOING ON. ADDITIONALLY, AND THIS ONE IS ABOUT $350,000, A COST OF SERVICES ANALYSIS. THIS AGAIN WOULD BE FOR THE ENTERTAINMENT DISTRICT. 
          IT WOULD BE LOOKING FOR AS THE DISTRICT IS BUILT OUT, WHAT IS THE COST OF THOSE SERVICES THAT WOULD BE PROVIDED IN TERMS OF PUBLIC SAFETY, MAYBE TRAFFIC CONTROL. AND THEN HOW WE WOULD TAKE THOSE COSTS OF SERVICES AND THE COSTS ASSOCIATED WITH THAT AND APPLY THOSE TO THE DIFFERENT VENUES OPERATING IN THE ENTERTAINMENT DISTRICT. FOR GOVERNMENT AFFAIRS, WE HAVE THE STATE REPRESENTATION SERVICES. LASTLY, WE HAVE HUMAN SERVICES. IT'S A LARGE DOLLAR AMOUNT BUT IT'S FAIRLY ROUTINE. 
          THIS IS $30 MILLION FOR OUR TEMPORARY STAFFING SERVICES. THIS IS PREDOMINANTLY GOING TO BE USED, AS WE HAVE VACANCIES IN THE CITY DEPARTMENT THAT WE NEED TO FILL, WE CAN USE THAT ON A TEMPORARY STANDPOINT TO BACKFILL THOSE VACANCIES, DUE TO PROMOTIONS, LEAVING THE CITY OF SAN ANTONIO, OR SOMEONE IS OUT ON EXTENDED LEAVE DUE TO ILLNESS OR SOMETHING OF THAT NATURE. I THINK WRAPPING IT UP ON THE AUDIT COMMITTEE FOR ITSD, ANOTHER ONE THAT IS FAIRLY ROUTINE, BUT JUST A HIGH-DOLLAR AMOUNT IS OUR CONTRACT FOR CITY-WIDE SECURITY OFFICER SERVICES. 
          FOR THE LIBRARY, WE HAVE THE PRINT MATERIALS AND ANCILLARY SERVICES. 
          UNFORTUNATELY THE COMPANY PROVIDING THAT TODAY HAS CLOSED ITS DOORS AND GONE OUT OF BUSINESS SO WE HAVE A BRIDGE CONTRACT IN PLACE. THIS WILL BE LOOKED AT REPLACING THE SERVICES THAT WERE OFFERED FOR THOSE PRINT MATERIALS. 
          MUNICIPAL COURT, POLICE, TOXICOLOGY, PUBLIC WORKS, AND THEN FOR TRANSPORTATION, ANOTHER ON-CALL FOR A&E FOR $9.3 MILLION. FOR THE HIGH-PROFILE CITY COUNCIL CONSENT AGENDA, I WANTED TO SAVE Y'ALL FROM GOING THROUGH ALL 49 SO I LEFT THE DETAIL IN THE PACKAGE FOR Y'ALL TO GO THROUGH AT YOUR LEISURE. 
          AND THERE ARE 49 OF THOSE HIGH-PROFILE SOLICITATIONS THAT WE WOULD BE RECOMMENDING FOR PLACEMENT ON THE CONSENT AGENDA. AS YOU WALK THROUGH THOSE HIGH-PROFILE SOLICITATIONS, IF THERE'S ANYTHING THAT YOU WOULD LIKE TO PROVIDE FEEDBACK TO ME, YOU CAN DO IT TODAY OR JUST SHOOT ME AN E-MAIL OF THINGS Y'ALL WOULD LIKE TO CHANGE. OR IF YOU HAVE THE TIME TO GO THROUGH THOSE ADDITIONAL 300 SOLICITATIONS, IF THERE'S SOMETHING THAT IS OF PARTICULAR INTEREST, PLEASE LET ME KNOW AND WE CAN BRING THAT UP INTO A SPECIAL BRIEFING. 
          SO, MOVING ON TO THE REMAINING 300 SOLICITATIONS THAT ARE NOT IDENTIFIED AS HIGH-PROFILE, THOSE WILL GO THROUGH TWO PATHS. THEY WILL GO DIRECTLY TO THE CONSENT AGENDA. OR BASED ON THE ACTION THAT COUNCIL APPROVED, THEY WOULD GO TO THE CITY MANAGER FOLLOW PATHS.O THOSE 300, AS I WOULD BE RECOMMENDED, 207 
          [01:10:03]
SOLICITATIONS WOULD BE RECO RECOMMENDED TO MOVE THROUGH THE CITY MANAGER DELEGATION. 
          THE CITY MANAGER DELEGATION, TH CRITERIA THAT WAS APPROVED AND RECOMMENDED IS ANYTHING LESS THAN $2.5 MILLION, AS FAR AS TH SUPPLY. IF IT'S LESS THAN 2.5, IT'S GOING TO BE LOBBIED, AS WE MENTIONED, LITTLE TO NO DISCRETION, AND THE PRICE IS ACTUALLY GOING TO DRIVE THAT. SO UNDER 2.5, THOSE WOULD BE DIRECTLY TO THE CITY MANAGER TO ACTUALLY APPROVE. FOR FLEET, FLEET PURCHASES ARE IDENTIFIED IN ADVANCE, EITHER NEW ADDITIONS TO THE FLEET OR THEY'RE GOING TO BE REPLACEMENT FOR VEHICLES OR FLEET EQUIPMENT THAT HAS REACHED THE END OF THEIR LIFE. IF THEY HAVE BEEN ADOPTED INTO THE BUDGET OR LISTED IN THE BUDGET, THEY'LL TYPICALLY BE LOBBIED OR REQUEST FOR OFFER. 
          AGAIN, LITTLE DISCRETION, THEY GO TO THE CITY MANAGER. AND THEN YOU ALSO HAVE PROFESSIONAL SERVICES. FOR CONSTRUCTION -- ALSO CONSTRUCTION, A AND E, OTHER SERVICES, IF IT'S LESS THAN 1 MILLION, IT'LL GO THROUGH THE CITY MANAGER AS WELL, AND WE MEET ONCE A WEEK GOES THROUGH THOSE IN A LOT OF DETAIL BEFORE THE CITY MANAGER APPROVES THEM, AND THEN THEY'RE OUT THERE FOR THE PUBLIC TO HAVE VISIBILITY T THEM BEFORE WE AWARD THE CONTRACT TO IDENTIFY IF THERE ARE ANY ISSUES OR CONCERNS. ANYTHING ABOVE THOSE THRESHOLDS 93, WOULD GO DIRECTLY TO CITY COUNCIL. SO I WANTED TO SHOW YOU THOSE 300 PLUS FOR 26. THIS IS WHAT IT LOOKS LIKE IN TERMS OF HOW THEY WOULD BE DISPERSED, IN TERMS SOFT PROCUREMENT CATEGORY, CITY COUNCIL AGENDA, AND CITY MANAGER DELEGATION. SO INCLUDING THE 82 HIGH PROFILE AND THE -- THERE WOULD BE 175 THAT WOULD BE RECOMMENDED TO BE PLACED ON THE CITY COUNCIL AGENDA. 
          ONE OF THE PRIMARY REASONS WE RECOMMENDED THIS WAS IT LOWERS THE VOLUME FOR THE CITY COUNCIL AGENDA BUT KEEPS THE HIGH DOLLAR ITEMS ON THE AGENDA FOR YOUR CONSIDERATION. WHEN YOU COMPARE THAT 175 TOTAL TO 1.2 BILLION, YOU'RE LOOKING AT 207, THE VOLUME AND THE FREQUENCY INCREASES, BUT ONLY $107 MILLION. 
          SO I THINK IT'S MEETING WHAT IT'S INTENDED TO DO, TAKING THOSE ROUTINE, HIGH VOLUME, LOW DOLLAR AMOUNTS, AND PROVIDING THE CITY MANAGER, THE DELL GANGS TO APPROVE THOSE. SO THIS IS HOW IT WOULD LOOK FOR FY26. 
          IT STARTED IN -- THE DELEGATIONS STARTED IN MAY, SO I ALSO WANTED TO SHOW YOU KIND OF A PEAK FOR FISCAL YEAR 2025. THE CITY COUNCIL AGENDA ON THE LEFT IS THE FULL YEAR, 326 SOLICITATIONS, AT ONE POINT $500 BILLION. 
          STARTING IN MAY, THERE'S 106 THAT THE CITY MANAGER A APPROVED AND A TOTAL OF $69 MILLION, SO I THINK IT'S MEETING THE INTENT, AND WE ARE CURRENTLY LOOKING AT SOME OTHER MEASURES, BUT IT LOOKS LIKE IT'S CUTTING OFF FROM 15 DAYS TO 20 DAYS IN TOTAL OF THE PROCESS, WHICH WAS THE INTENT TO GET THOSE ON THE STREET EARLIER. 
          AND WE'RE ON THE HOME STRETCH, GETTING REDS I DID TO WRAP UP, BUT WE ALSO WENT TO THE EWDC, BASED ON THE CHARGE OF THE ECONOMIC AND WORK FORCE DEVELOPMENT COMMITTEE, THE COMMITTEE WAS TASKED OF LEADING A REVIEW OF THE CITY'S PROCUREMENT PROCESSES IN COLLABORATION WITH STAKEHOLDERS. WE MAKE RECOMMENDATIONS ON THE SEPTEMBER 24, AND THERE WERE REALLY THREE AREAS THAT WE WERE GOING TO FOCUS ON, THE ONE BEING SUPPLIER ENGAGEMENT, AND WE TALK ABOUT SUPPLIER ENGAGEMENT, WE'RE REALLY TALKING ABOUT COUPLE OF THINGS, AND THAT'S KEEPING OUR SUPPLIERS INFORMED, YOU KNOW WHAT ARE THE OPPORTUNITIES THAT ARE BE AVAILABLE, YOU KNOW, WHAT ARE THE TIMELINE TO RELEASE THESE SOLICITATIONS, A LOT OF WHAT WE'RE TALKING ABOUT TODAY. OUTREACH EVENTS AND COMMUNICATIONS CHANNELS, FEEDBACK, AND HOW WE CAN MODIFY OR IMPROVE THAT THROUGH THE COMMITTEE AND STAKEHOLDERS AS WE ENGAGE THEM. WE ALSO HAD THE CAPACITY BUILDING, AND WHEN I TALK ABOUT CAPACITY BUILDING, I'M TALKING ABOUT REALLY PRO PROVIDING OUR VENDORS AND CONTRACTORS AND RESPONDERS THE PROCUREMENT PROCESS, PROVIDING THEM WITH TRAINING AND HOW TO NAVIGATE THE PROCESS AS WELL, AND THEN ELIMINATING SOME BARRIERS THAT MAY BE AVAILABLE OR THAT HAVE BEEN BROUGHT TO OUR ATTENTION, SO JUST LO LOOKING AT IF THERE'S ANYTHING TO DO FROM AN INSURANCE AND BONDING STANDPOINT. AND THEN WRAPPING UP WITH PROCUREMENT PROCESS IMP IMPROVEMENTS. WE WENT THROUGH A STUDY PROBABLY LAST -- MIDDLE OF LAST YEAR, WE ENGAGED A COMPANY CALLED CIVIC INITIATIVES. THEY GAVE US WHAT I'LL CALL A PROCUREMENT ROADMAP, AND WE'VE BEEN IMPLEMENTING THINGS SLOWLY THAT THEY RECOMMENDED AND WE'LL CONTINUE TO IMPLEMENT THOSE IMPROVEMENTS AS WELL. AND THEN LASTLY ON THE SL SLIDE, IN TERMS OF THE P PROCUREMENT PROCESS AND IMPROVEMENTS, WE'LL BE GOING THROUGH A SUB SUBSTANTIAL U UPGRADE IN THE FINANCIAL SYSTEM, BOTH THE FINANCIAL 
          [01:15:02]
SIDE AND THE PROCUREMENT SIDE. WE'LL BE TAKING KIND OF THE BEST PRACTICES AND MODIFYING OUR PROCUREMENTS TO ADAPT TO THOSE BUSINESS PROCESSES. 
          SO LASTLY, THE TIMELINE WITH THE EWDC AND ON THIS CHARGE FROM THE MAYOR, IT STARTED WITH THE COMMITTEE, EWDC COMMITTEE COMING TODAY BEFORE YOU AS THE AUDIT COMMITTEE AND PRESENTING THE ANNUAL FORECAST AND OVERVIEW OF PROCUREMENT PROCESSES AND GETTING FEEDBACK FROM YOU ALL. IN DECEMBER, WE WILL ALSO -- I BELIEVE IT'S DECEMBER 3, WE WILL ALSO TAKE THE FE FEEDBACK FROM YOU AND I INCORPORATE IT INTO THIS PRESENTATION, AND YOU'LL HAVE THE OPPORTUNITY TO HEAR IT ONE MORE TIME AT THE FULL COUNCIL ON THE B SESSION, AND THEN BACK TO THE EWDC IN FEBRUARY WITH SOME RECOMMENDATIONS AND IMP IMPROVEMENTS FOR THE PROCESS STANDPOINT, WORK WITH STAKEHOLDERS FROM FEBRUARY TO JUNE, AND THEN COMING BACK TO THE EWDC IN JULY OF 2026 TO FINALIZE A REPRESENTATION AND PROVIDE A FULL REPORT BACK TO THE COUNCIL. CHAIR, THAT CONCLUDES MY 
          PRESENTATION. >> VIAGRAN: THANK YOU. AND I HOPE MY NEW COUNCILMEMBERS AND COMMITTEE MEMBERS UNDERSTAND WHY WE DON'T SEE EVERYTHING, BUT, AGAIN, AS TROY MENT MENTIONED, IF YOU LOOK THROUGH SOME OF THE THINGS THAT ARE LOOK LOOKING -- AND YOU HAVE LIKE YOU WANT TO HAVE THAT CONVERSATION, LET US KNOW SO WE CAN BRING THAT HERE. A LOT TO DO, THAT'S WHY I WAS LIKE, WE MAY HAVE A SPECIAL DECEMBER ME MEETING, IF NEEDED, JUST BECAUSE THERE'S SO MUCH TO GET DONE TO MAKE SURE WE STAY ON SCHEDULE. SO THANK YOU, AGAIN, FOR THIS. I'M REALLY LOOKING FORWARD TO SEEING HOW THIS WORKS WITH THE CITY MANAGERS, EXECUTIVE TEAM ON SOME OF THOSE CONTRACTEDS THAT WE JUST KNOW ARE COMING UP EVERY YEAR, BUT AS WE FACE THE HIGH INFLATION RATES, I THINK WE'RE GOING TO SEE THAT OUR DOLLAR DOESN'T STRETCH AS MUCH, SO THAT'S WHERE WE, AS THE COMMITTEE, REALLY NEED TO MAKE SURE THAT WE'RE GETTING AS MANY -- AS MUCH INFORMATION OUT THERE WHEN THEY COME FOR THE PRE AND POST, THAT WE MAKE SURE WE'VE DONE THAT TO GET EVERYBODY OUT THERE AND LET THOSE IN THE BUSINESS COMMITTEE KNOW IT'S WORTH APPLYING TO GET A CONTRACT WITH THE CITY, SO THANK YOU SO MUCH FOR THAT, I LOOK FORWARD TO HEARING FROM THE COMMITTEE. WHO WOULD LIKE TO GO FIRST? ANYONE? YES. TRICIA. 
          >> THANK YOU FOR THAT THOROUGH BRIEFING, AND I GOT EXCITED WHEN YOU SAID PROCUREMENT 101, BECAUSE I'M A NERD, AS BUDDY KNOW, I'M A NERD. 
          QUESTION ABOUT SUPPLY CHAIN RISK MANAGEMENT. YOU DID A GREAT JOB WALKING US THROUGH THE PROCESS, POTENTIALLY BEING NEW TO THE PRO PROCESS. YOU TALKED ABOUT AN EV EVALUATION TEAM AND EV EVALUATION PART OF THE PROCESS BEFORE YOU FINALIZE THAT PRO PROCUREMENT. MY QUESTION, IN THAT EVALUATION PROCESS, OR MAYBE IT LIVES SOMEWHERE ELSE, WHAT IS THE CRITERIA YOU GUYS LOOK AT -- GUYS AND GALS -- LOOK AT FOR WHETHER THERE'S POTENTIAL BRAND IMPACT FOR USING A CERTAIN SUPPLIER, WHETHER THAT SUPPLIER MAY NOT BE AS HEALTHY AS THEY'RE SAYING ON PAPER, MAYBE YOU DO A FACT CHECK AND REALIZE THE SUPPLIER ISN'T 5 YEARS OLD, IT'S 1 YEAR OLD AND OPERATING OUT OF A GARAGE. WHAT DOES THAT LOOK LI 
          LIKE, IF YOU CAN HELP ME UNDERSTAND. >> THAT'S A GREAT QUESTION. AND WE HAVE A DUE DILIGENCE PROCESS, SO MY TEAM AND THE CITY ATTORNEY'S TEAM -- THE CITY ATTORNEY'S TEAM WILL LOOK AT IF THERE'S LITIGATION RISK, SO WHAT LITIGATION MIGHT BE INVOLVED AND THE TYPE OF LITIGATION, AND ALSO FROM AN ONGOING CONCERN, SO WE ASK THEM FOR CERTAIN SOLICITATIONS, WE GET THEIR FINANCIALS, PULL THEIR DNB REPORTS, REQUEST LETTERS SOMETIMES FROM FINANCIAL INSTITUTIONS. WE DO THE GOOGLE SEA SEARCHES, CHECK STATE RECORDS AS WELL, SO WE TRY TO CAST A VERY BROAD NET SO WE CAN ACTUALLY GIVE THE COMMITTEE AS MUCH INFORMATION AS WE CAN TO BASICALLY MAKE A DECISION AS FAR AS IS THIS GOING TO BE A GOOD PARTNER AS WE MOVE FORWARD, ARE THEY GOING TO BE THERE FOR THE LONG-TERM. 
          YOU KNOW, WE SUFFERED A LOT OF THAT GOING THROUGH THE PANDEMIC. 
          WE HAD COMPANIES THAT JUST -- WE COULDN'T PROVIDE THE SERVICES ANYMORE. THAT WAS NOT A RISK THAT WE COULD IDENTIFY, SO THOSE ARE GOING TO BE THINGS THAT MAY POP UP FROM TIME TO TIME THAT ARE JUST OUT OF OUR CONTROL, BUT TO THE EXTENT WE CAN, WE TRY TO 
          MITIGATE THAT RISK. >> GLAD TO HEAR YOU DID DUN AND BRAD STREET IN YOUR RESEARCH PROTOCOL. HAVE YOU LOOKED AT SOME SORT OF PROPRIETARY OR SOFTWARE TO DO THAT ANALYSIS TO HELP YOUR PEOPLE, OR IS IT MORE 
          MANUAL. >> IT'S MORE MANUAL. I MEAN, WE LOOK AT ALL OF THAT, COLLECT IT IN AN EXCEL SPREADSHEET TO COMPARE THE RESPONDENTS SIDE BY SIDE, AND THAT'S PROVIDED TO THE COMMITTEE. 
          THE ATTORNEY'S OFFICE ALSO HAS TOOLS THEY USE TO GIVE THEM VISIBILITY 
          [01:20:02]
          TO LITIGATION. >> OKAY. THANK YOU. 
          >> VIAGRAN: ALL RIGHT. MISTY, COUNCILMEMBER SPEARS. 
          >> SPEARS: THANKS, TROY. GOOD PRESENTATION. BUT I HAD A QUESTION ABOUT HOW EFFECTIVE HAS OUR LOCAL PREFERENCE PROGRAM BEEN? I MEAN, ARE WE SEEING A LOT OF THAT 5%, 3% USAGE FOR LOCAL VENDORS? 
          >> WE SEE IT FROM TIME TO TIME. I WOULDN'T SAY IT'S -- THERE'S CERTAIN AREAS THAT I THINK IT'S EFFECTIVE, ONE OF THE AREAS THAT IT WAS VERY EFFECTIVE WAS ON FLEET BUYS. 
          HISTORICALLY, WE SAW ALL OF OUR FLEET BUYS GOING TO HOUSTON BIDDERS BECAUSE THE MARGINS ARE SO CLOSE ON FLEET BUYS, A LOT OF THAT BUSINESS HAS BEEN BROUGHT IMPACT DIRECTLY TO SAN ANTONIO. WHEN WE EXPANDED FROM 3% TO 5%, WE SAW IT EXPAND A LITTLE, IN AREAS OF, LIKE, CONSTRUCTION AND FLURRY SEALS, BUT TO BE HONEST, A LOT OF OUR BUYS, I'D HAVE TO GET IT FOR YOU. ABOVE AND BEYOND LOCAL PREFERENCE, 40% TO 50% ARE TO LOCAL VENDORS WITHOUT THE PREFERENCE PLAN IN PLACE. 
          >> SPEARS: THAT'S GOOD. THAT'S GOOD. SO I GET A LOT OF PRESSURE IN MY DIST DISTRICT -- I THINK ALL OF US DO -- TO FINISH OUR PROJECTS AND EVERYTHING ON TIME. IS THERE A WAY -- I HAVE CONCERN THAT THERE ARE BIDS BEING MADE THAT ARE WELL -- THEY KNOW THEY'RE UNDERBIDDING, AND THEN THEY CHANGE ORDER AND GO ABOVE, SO THIS IS SOMETHING I'M KEENLY CONCERNED ABOUT. DO WE TRACK PERFORMANCE OVER TIME FROM VENDORS IF THEY'RE EITHER NOT MEETING THE TIMELINESS EXPECTATION OR CHANGE ORDERS LIKE CRAZY, OR CHANGE AFTER THE FACT AND THEY'VE GOTTEN THE AWARD, THESE ARE THINGS MY CONSTITUENTS ARE 
          NOTICING, AND I THINK THAT'S TRUE ACROSS . >> I'M NOT WELL VERSED AS FAR AS THE DETAILS ON THE RESPONSIBLE VENDOR, BUT THOSE ITEMS ARE TRACKED, WE DO TRACK THE NUMBER OF CHANGE ORDERS, THAT'S A CONCERN FOR US WHEN WE LOOK AT A PRESENTATION AND YOU HAVE A BID THAT MAY BE SUBSTANTIALLY LESS, BUT I DON'T KNOW IF MICHAEL OR -- MICHAEL -- MIKE IS HERE. AND HE WANTS TO TALK A LITTLE BIT ABOUT IT. 
          BUT I CAN'T GET INTO THE DETAILS. >> SPEARS: I ASKED YOU A PRETTY 
          BROAD QUESTION. >> HI COMMITTEE MEMBERS. I'M MIKE SHANNON, THE DIRECTOR OF CAPITAL DELIVERY DEPARTMENT. AND YES, COUNCILMEMBER, THAT IS SOMETHING WE DO TRACK. FOR EXAMPLE, WE HAVE A RESPONSIBLE BIDDER LIST OR A NONRESPONSIBLE B BIDDER LIST WE KEEP TRACK. ABOUT 8 COMPANIES RIGHT NOW THAT HAVE NOT PERFORMED WELL, SO THEY'RE NOT ALLOWED TO BID FOR ABOUT 3-YEAR PERIOD ON THOSE LOBBIED CONTRACTS. SOME OF THAT IS PERFORMANCE, CERTAINLY RELATED TO TOO MANY CHANGE ORDERS OR FAILING TO COMPLETE THE PROJECT ON TIME. WE HAVE A COUPLE OF OTHER MEASURES AS WELL. I WOULD BE HAPPY TO SIT DOWN WITH YOU AS WE TALK ABOUT OTHER PROJECTS MOVING FORWARD, HAPPY TO TALK ABOUT, THAT BUT IT IS AN IMPORTANT ELEMENT THEY GET THE PRICE RI RIGHT, PROJECT MANAGE IT TO THE COST THEY GAVE U US. IF THERE'S A CHANGE ORDER THAT'S WARRANTED, WITH E REVIEW THAT, MAY ISSUE THAT, BUT WE WANT THEM TO COMPLETE IT ON TIME WITHIN BUDGET. SO THAT'S THE RESPONSIBLE BIDDER ORDNANCE THAT WE IMPLEMENT IN OUR 
          CONTRACTEDS. >> SPEARS: OKAY. THAT'S GOOD TO HEAR, AND I APPRECIATE THAT. AND I WOULD LIKE TO HEAR MORE ABOUT THAT. 
          AND SO THANK YOU VERY MUCH. >> VIAGRAN: OKAY. 
          MARC, COUNCILMAN WHYTE. WHYTE WHYTE THANK YOU. >> WHYTE: MIKE, ON TIME AND ON BUDGET, THOSE WORDS MAKE ME SMILE, IF WE COULD JUST PLEASE FOCUS OUR PUBLIC WORKS DEPARTMENT, OUR NEW CAPITAL F FOLKS ON TIME AND ON BUDGET, THIS IS WHAT OUR CITIZENS AND OUR BUSINESSES DESERVE. I WILL, AGAIN, TAKE THE OPPORTUNITY TO TALK ABOUT ROAD PROJECT IN MY DISTRICT THAT WAS SUPPOSED TO TAKE A COUPLE MONTHS. IT ENDED UP TAKING 6 MONTHS. 
          WE HAD PEOPLE CALLING MY OFFICE THAT COULD NOT GGET OUT OF THEIR DRIVEWAYS. THAT IS NOT FAIR TO THE RESIDENTS OF SAN ANT ANTONIO. ADDITIONALLY, LAST WEEK, I HAD A MEETING WITH A GROUP OF BUSINESSES DOWNTOWN THAT TOLD ME ABOUT ANOTHER BUSINESS DOWN HERE, A BREWERY THAT IS CLOSING ITS DO DOORS BECAUSE PEOPLE JUST SIMPLY COULDN'T GET IN. THE PAST 6 MONTHS, REVENUE DROPPED, AND THEY COULDN'T STAY OPEN. IT IS NOT FAIR TO SAN ANTONIOIANS TO DO ANYTHING OTHER THAN MAKE SURE THAT THE CONTR CONTRACTORS THAT WE PUT ON THESE JOBS FINISH ON TIME AND ON BUDGET. 
          [01:25:04]
THAT SHOULD BE THE CRITERIA THAT WE LOOK AT IN TERMS OF WHO WE HIRE. 
          SO WITH THAT SAID, I DO HAVE A QUESTION REG REGARDING AI AND HOW AI IS INVOLVED IN, YOU KN KNOW, THE PROCUREMENT PROCESS, IF IT IS, OR HOW IT MAY BE MOVING FORWARD TO STREAMLINE SOME OF THESE. 
          >> RIGHT NOW, IT IS NOT INVOLVED IN THE PROCESS. WE DID LOOK AT PUTTING IN PLACE A PILOT PROGRAM USING AI ON OUR CONT CONTRACTS. 
          ONE OF THE THINGS WE LEARNED DURING JUST THE KIND OF EXPLORING THAT OPPORTUNITY IS OUR DATA NEEDS TO BE MORE SOUND TO ACTUALLY LEVERAGE THAT DATA IN TERMS OF THE DATA TO HAVE IT THERE. 
          AS WE MOVE INTO SMAP UTILIZATION, WE'LL LOOK AT HOW THAT AI CAN BE UTILIZED IN THE PRO PROCUREMENT PROCESS FROM CONTRACTS, OR WHERE IT COULD BE LEVERAGED THROUGHOUT THE ENTIRE PROCESS. 
          SO THAT IS SOMETHING WE WILL BE LOOKING AT, AND WE ARE EXPLORING THAT. 
          >> WHYTE: GREAT. I HAVE SOME SPECIFIC QUESTIONS ABOUT SOME OF THE ITEMS ON HERE, BUT WE CAN PROBABLY MOST EFFICIENTLY DO THAT OFFLINE, SO I'LL STOP THERE. THANKS, CHAIR. 
          >> VIAGRAN: THANK YOU. DANIEL, ANY QUESTIONS? >> JUST MY PRIMARY QUESTION WOULD BE, LIKE, ON ANY TYPE OF RISK MITIGATION STRATEGIES THAT WE HAVE. I THINK A LOT OF WHAT I'VE HEARD TODAY IS ON DELAYS OR CHANGE ORDERS, SO WHAT TYPES OF STRATEGIES ARE IMPL IMPLEMENTED TO ENSURE THESE PROJECTS DO FINISH ON TIME, OR IN SCOPE AS 
          WELL. >> I THINK AS FAR AS FROM A PROCUREMENT STANDPOINT, THAT'S A DIFFICULT QUESTION FOR ME TO ANSWER BECAUSE ONCE WE CONDUCT THE P PROCUREMENT, WE TURN IT OVER TO DEPARTMENTS, AND UNDER EACH CONTRACT, THEY HAVE A CAP OR A CONTRACT ACTION PLAN, AND IT'LL IDENTIFY ALL THE KEY TERMS AND CONDITIONS, TIMELINES, PERFORMANCE METRICS, THAT NEED TO BE MET UNDER THAT CONTRACT, AND THOSE DEPARTMENT PERSONNEL WILL TAKE THAT CONTRACT ACTION PLAN AND USE THAT TO GUIDE THEM THROUGH THE ENTIRE PROCESS OF THE CONTRACT TO MAKE SURE THAT WE ARE GETTING THESE SERVICES OR THE PRODUCTS THAT WE NEED TIMELY, AND IF THERE'S ANY DEAFSIES, THEN THAT IS ACTUALLY TAKEN CARE OF. WE COME BACK AS A P PROCUREMENT DEPARTMENT IF THERE'S DEAFSIES AND WE START WORKING WITH VENDORS AND CITY ATTORNEY'S OFFICE ON CURE LETTERS AND IF THEY DIDN'T CURE THE DEFICIENCIES, THEN WE MOVE FORWARD WITH OTHER ACTIONS. 
          >> VIAGRAN: ALL RIGHT. THANK YOU. THANK YOU, TROY, FOR THE PRESENTATION. AND IF WE COULD JUST GET ANYTHING THAT YOU GUYS LOOK AT AND WANT TO BE PULLED, IF YOU COULD JUST SEND THAT OUR WAY VIA EMAIL, AND THEN THAT WAY WE COULD WORK ON THAT TO GET IT AGEN AGENDIZED. THANK YOU. ALL RIGHT. 
          WE ARE ON TO ITEM NUMBER 9. MADAM CLERK, PLEASE READ THE CAPTION FOR ITEM 9 -- ITEM 10. SORRY. CLERK CLERK ITEM 10 IS A BRIEFING ON THE REQUIRED COMMUNICATION FOR FISCAL YEAR 2025 EXTERNAL 
          INDEPENDENT AUDIT. >> GOOD MORNING, CLAIRE, COUNCILMEMBERS, COMMITTEE MEMBERS. I'M MELANIE KEETON, THE DEPUTY FINANCE DIRECTOR. 
          I'LL START OUT THE BRIEFING AND HAVE AMANDA EVES HERE TO FINISH UP THE PRESENTATION ON THE REQUIRED COMMUNICATIONS WITH THE AUDIT COMMITTEE FOR THE FISCAL 2025 EXTERNAL AUDIT. JUST TO GIVE YOU A LITTLE RIGHT MIND-SET HERE, THERE IS THE EXTERNAL AUDIT, WHICH IS DONE ONCE A YEAR, WHICH IS DONE BY AN INDEPENDENT EXTERNAL AUDIT FORM, IN THIS CASE, IT'S FOUR MADARS, THEY ENSURE THE CITY'S RECORDS ARE PROPERLY MAINTAINED, FREE FROM STATEMENT AND COMPLY WITH THE ESTABLISHED RULES AND POLICIES, PARTICULARLY GAS BY, WHICH IS OUR ENTITY. 
          THEY PROVIDE A TRUE AND FAIR VIEW OF THE FINANCIALS OF THE CITY. 
          IT'S REQUIRED BOTH UNDER CITY CHARTER AND STATE STATUTE AND BECAUSE WE HAVE GRANTS BOTH FROM FEDERAL AND STATE, WE ALSO HAVE TO DO A SINGLE AUDIT. 
          THE INTERNAL AUDITORS AS YOU'VE SEEN WITH THE VARIOUS CONSENT AND INDIVIDUAL ITEMS FROM BUDDY, IT'S MORE PROGRAM ATTIC PROCESSES, VERY INDIVIDUALLY, AND IT'S DONE THROUGHOUT THE YEAR WITH VARIOUS PROJECTS. THEY, OF COURSE, COME TO THE AUDIT COMMITTEE AND THEY ARE CREATED THROUGH THE CITY CHARTER. 
          THE CONTRACT WITH THE SERVICE IS A FIVE YEAR CONTRACT, THREE YEARS, WITH TWO YEAR EXTENSION, WE ARE ON YEAR 4, THE FIRST OF THE TWO YEAR EXTENSION, AND SO THIS IS FOR THE FISCAL 2025 AUDIT, AND OF COURSE YOU CAN SEE THE PRICE IS THERE FOR BOTH THE EXTERNAL -- THE ACTUAL COMPREHENSIVE -- SORRY, THE ANNUAL COMPREHENSIVE FINANCIAL REPORT AS WELL AS THE CITY AUDIT THEY DO THE ENTIRETY 
          [01:30:02]
OF THE CITY. THE CITY'S RESPONSIBILITIES, AN THIS IS PRIMARILY LED BY VICTORIA RADAR, WHO IS OUR ASSISTANT FINANCE DIRECTOR AND ELIZABETH, THEY'RE BOTH OVER HERE TO THE RIGHT SIDE OF MY MYSELF, ELIZABETH IS THE CONTROLLER, SO THEIR DIVISION I RESPONSIBLE FOR PUTTING TOGETHE OUR AKFER WHICH IS A FIVE HUNDRED PAGE DOCUMENT, ON THE CITY'S WEBSITE, VERY TRANSPAREN AND ALSO INCLUDES THE RESULTS O THE FEDERAL AUDIT, BOTH FEDERAL AND STATE SINGLE AUDIT. SO THEY HAVE TO INTERPRET AND IMPLEMENT ANY NEW GAS BY REGULATIONS EVERY YEAR, THEY CONSOLIDATE THE CITY'S FINANCIALS, NOT JUST CITY'S BUT THE 27 COMPONENT UNITS, SO THEY'RE WRANGLING EVERYTHING, WORKING DIRECTLY WITH THE EXTERNAL AUDITORS, MAKING SURE WE GET DID DONE WITH THE TIMELINES SET BY THE STATE AND THE FEDERAL GOVERNMENT. THEY HAVE TO DO A SPECIFIC AUDIT, WE TALKED ABOUT THE GRANTS, THEY WORK WITH THE DEPARTMENTS ON ANY FINDINGS THAT MAY COME UP. WE HAVE TO SUBMIT TO THE FEDERAL DATA COLLECTION CLEARING HOUSE, WHICH IS WHERE ALL OF THE BASICALLY GRANTING AGENCIES CAN SEE, THE CITY'S RESULTS, BOTH ON OUR AKFER AND OUR SINGLE AUDITS, AND THEY REALLY WORK WITH THE AUDITORS ON ANY FOLLOW UP REQUESTS THEY MAY HAVE. 
          WITH THAT, I'LL GO AHEAD AND HAND IT OVER TO AMANDA EVES, A PARTNER WITH FORBES AND BIZARRES, TO DO THE AUDIT PART ON THE 2025 EXTERNAL AUDIT. 
          >> THANK YOU. MELANIE. AND I WANT TO SAY THANK YOU TO THE COMMITTEE. WE TRULY APPRECIATE THE OPPORTUNITY TO PROVIDE YOU WITH OUR SERVICES, AND ALSO, THANK YOU TO MANAGEMENT, YOU KNOW, WE HAVE BEGAN OUR AUDIT, AND WE'LL TALK THROUGH THE TIMELINE, BUT THEY REALLY DO SPEND -- YOU KNOW, YOUR ACCOUNTING AND FINANCE TEAM REALLY DO SPEND A LOT OF TIME PREPARING THIS FINANCIAL REPORT MELANIE WAS TALKING ABOUT, AS WELL AS HELPING US WITH THE AUDIT IN ADDITION TO THE THINGS THEY'RE REQUIRED TO DO EVERY DAY, SO WE REALLY DO APPRECIATE THEIR HELP. JUST TO START OFF, YOU'VE GOT M CONTRACT INFORMATION HERE, AND ALSO AS FAR AS OUR COMMUN COMMUNICATIONS, OUR AUDIT COMMUNICATIONS WILL BE DIRECTED TO COUNCILMEMBER VIAGRAN AS THE AUDIT COMMITTEE CHAIR AND ALSO TO BEN. 
          SO ALTHOUGH YOU WILL SEE YOUR AUDIT REPORT IS SIGNED BY FORVIS AND BIZARRES, WE DO HAVE FOUR TEAMING PAR PARTNERS WE WORK WITH DURING THE AUDIT THAT ARE CRITICAL PARTS OF THE AUDIT TEAM, INVOLVED FROM PLANNING THROUGH REPORT ISSUANCE, AND I BELIEVE WE HAVE ONE, CHRIS KARMONA HERE TODAY, SO ONE OF THE TEAMING MEMBERS HERE, BUT WE REALLY DO APPRECIATE THEIR HELP. THEY'RE A HUGE PART OF THE ODD IT. OUR RESPONSIBILITIES FOR THE AUDIT ARE, AS MELANIE MENTIONED TO AUDIT THE CI CITY'S FINANCIAL STATEMENTS, ALSO TEST AND REPORT ON YOUR COMPLIANCE WITH MAJOR, FEDERAL, AND STATE PROGRAMS. YOU'LL SEE THE AUDIT STANDARDS LISTED ABOVE HERE, AND I JUST WANT TO REMIND EVERYONE THAT OUR AUDITS ARE DESIGNED BY STANDARDS TO PROVIDE REASONABLE ASSURANCE THAT YOUR FINANCIAL STATEMENTS ARE FREE OF MATERIAL MISSTATEMENT AND THAT YOU'VE COMPLIED IN ALL MATERIAL RESPECTS WITH FEDERAL AND STATE GRANT REQUIREMENTS. 
          BUT THE AUDIT DOES NOT, YOU KNOW, RELIEVE THE AUDIT COMMITTEE AND THE CITY OF THEIR RESPONSIBILITIES OV OVER -- FOR PROVIDING OVERSIGHT IN THOSE AREAS. 
          THESE ARE THE DELIVERABLES. MELANIE TOUCHED ON THESE A FEW MINUTES AGO. 
          SO A HANDFUL OF REPORTS THAT YOU'LL SEE COMING FROM US EARLY NEXT YEAR. 
          THIS IS OUR TIMELINE FOR THE AUDIT. SO WE BEGAN, LIKE I SAID EARLIER, YOU KNOW REALLY WORKING ON THE AUDIT IN JU JULY, DOING OUR AUDIT PL PLANNING, INTERIM TESTING IN AUGUST, WE'RE HERE IN NOVEMBER PROVIDING OUR AUDIT PLAN TO YOU. WE WILL BE ISSUING OUR REPORTS IN FEBRUARY, THAT'S THE PLAN TODAY, AND THEN BACK IN MARCH TO PRESENT THOSE RESULTS TO YOU. 
          SO WE ARE -- AGAIN, WHEN I SAY I APPRECIATE THE CITY'S HELP, WE'RE HERE FOR, YOU KNOW, ALMOST THE ENTIRE YEAR BASICALLY WORKING ON THE AUDIT, SO WE REALLY DO APPRECIATE THEIR HELP. SO YOU'LL HEAR ME TALK ABOUT MATERIALITY, SO THIS IS JUST A SLIDE TO KIND OF GIVE YOU SOME INSIGHT INTO WHAT THAT MEANS. SO AN ITEM IS CONSIDERED MATERIAL IF IT WOULD EFFECT A USER OF THE FINANCIAL STATEMENTS OR A USER OF YOUR 
          [01:35:02]
GRANT COMPLIANCE REPORTS FOR THE STATEMENTS, DEPENDING ON THE FUND WE'RE AUDITING, LOOKING AT TOTAL ASSETS, REVENUES OR EXPEND CURES WHEN LOOKING AT THOSE MATERIALITY AMOUNTS, AND THEN FOR COMPLIANCE WITH YOUR FEDERAL AND STATE SINGLE AUDIT, THAT WOULD BE BASED ON THE TOTAL PROGRAM EXPENDITURES. 
          JUST A FEW ITEMS RELEVANT TO THE ITEM OVERALL, AND THEN THE COMMITTEE'S RESPONSIBILITY FOR OVER OVERSIGHT. SO OF COURSE INTERNAL CONTROL OVER FINANCIAL REPORTING AND GRANT COMPLIANCE IS VERY IMPORTANT TO THE CITY. THERE ARE SIGNIFICANT 13459S IN YOUR FINANCIAL STATE STATEMENTS, WE'VE LISTED A FEW OF THEM HERE. ALSO, THE MAJOR PROGRAM TE TESTING, AS I MENTIONED FOR FEDERAL AND STATE COMPL COMPLIANCE, AND THEN ANY CHANGES IN ACCOUNTING STANDARDS, AND WE'VE LISTED SOME CH CHANGES COMING UP IN THE FUTURE IN THE APPENDIX TO THIS PRESENTATION. SO MELANIE ALSO MENTIONED COMPONENT UNITS. SO AS EVERYONE IS AWARE, THE CITY HAS A LOT OF MOVING PARTS, DIFFERENT COMPONENTS. THIS INFORMATION IS BASED ON THE PRIOR YEAR ACFR, BUT THERE ARE A NUMBER OF COMPONENT UNITS WITHIN THE CITY, FEW DISH AREA FUNDS, BLENDED COMPONENT UNITS OR DISCREETLY COMPONENT UNITS THAT ARE NOT AUDITED BY F FORVIS MAZARS, THEY'RE AU AUDITED BY OTHER FIRMS, AND SO THIS SLIDE GIVES YOU THE TOTAL BLENDED COMPONENTS ON THE TOP, AND THEN BASED ON YOUR FINANCIAL STATEMENTS, THE COUNT OR NUMBER OF COMPONENT UNITS AUDITED BY OTHER FIRMS. SO WHEN DOING THE AUDIT FOR THE CITY, SINCE WE DIDN'T AUDIT THOSE COMPONENT, WE WILL OBTAIN THOSE REPORTS FROM OTHER AUDITORS, AND HAVE COMMUNICATION WITH OTHER AUDITORS AS WELL AS IT RELATES TO OUR AUDIT. THE SIGNIFICANT RISK AREAS, AS WE ARE -- AS WE HAVE PLANNED OU AUDIT. THESE ARE THE SIGNIFICANT RISK AREAS WE HAVE IDENTIFIED, SIMILAR TO WHAT YOU HAVE SEEN IN THE PAST, SIMILAR TO OTHER CITIES, OTHER ENTITIES TO A SIMILAR SIZE OF THE CITY OF SAN ANTONIO. SO REVENUE RECOGNITION, MANAGEMENT OVERRIDE OF CONTROLS ARE TYPICALLY ALWAYS SIGNIFICANT RISK AR AREAS IN A FINANCIAL STATEMENT AUDIT, AND THEN OF COURSE PROGRAM COMPLIANCE IS A RISK AREA AS WELL BECAUSE OF THE FEDERAL AND STATE COMPLIANCE REQUIREMENTS THAT WE'LL BE TESTING. 
          THESE ARE THE FEDERAL AND STATE SINGLE AUDITS THAT WE'RE REQUIRED TO TEST THIS YEAR. THIS IS BASED ON INTERIM FINANCIAL STATEMENTS, SO IT COULD CHANGE ONCE THE CITY CLOSES OUT THE SEPTEM SEPTEMBER 30TH NUMBERS AND THOSE NUMBERS CHANGE SOME. THERE COULD BE POTENTIALLY SOME CHANGES IN THESE PROGRAMS, BUT YOU HAVE FOUR MAJOR PROGRAMS THAT WILL BE AUDITED THIS YEAR, AND THEN ONE STATE PROGRAM, WHICH IS THE CHILD CARE DELIVERY PROGRAM. 
          SO WE ARE NOT CONDUCTING A FORENSIC AUDIT. BUT AS A PART OF OUR FINANCIAL AUDIT, WE ARE REQUIRED TO ASSESS THE RISK OF FRAUD WITHIN A FINANCIAL STATEMENT AUDIT, SO THESE ARE THINGS WE DO AS A PART OF THE AUDIT TO CONSIDER THAT RISK, ONE OF THEM IS HAVING -- DOING BRAIN BRAINSTORMING WITH THE TEAM, SO WE GET THE AUDIT TEAM TOGETHER AND TALK ABOUT WHAT COULD GO WRONG, YOU KNOW, WHERE COULD THERE BE FRAUD WITHIN THE ORGANIZATION, WHAT AREAS, YOU KNOW, WOULD BE SUSCEPTIBLE TO THAT. WE'LL HAVE INTERVIEWS WITH MANAGEMENT AND STAFF DURING THE AUDIT, LOOK AT ANY ESTIMATES FOR POTENTIAL MANAGEMENT BIAS, LOOK AT ANYTHING UNUSUAL, ANY SIGNIFICANT UNUSUAL TR TRANSACTIONS, AND THEN WE ALSO ADD AN ELEMENT OF UNPREDIUNPREDICTABILITY TO OUR AUDIT PROCEDURES, SO WE CHOOSE SOMETHING TO TEST WE HAVEN'T LOOKED AT IN THE PAST TO PROVIDE THE UNPREDICTABILITY. AND THEN WE WOULD WELCOME FROM THE COMMITTEE ANY THOUGHTS ON THESE AREAS OR ANY CONCERNS OVER THE AREAS AS YOU'RE THINKING ABOUT THE CITY'S FINANCIAL STATEMENTS AND COMPLIANCE AND THE AU AUDIT, IF THERE ARE ANY SIGNIFICANT MATTERS IN THIS AREA THAT YOU WOULD ALL HA HAVE, WE WOULD ASK THAT YOU PASS THEM THROUGH THE COMMITTEE CHAIR AND SHE WILL PROVIDE THOSE CONCERNS TO U US. AND THAT IS -- THAT'S ALL OF MY REQUIRED COMMUNICATION, SO I WOULD BE HAPPY TO TAKE ANY QUESTIONS ANYONE MAY HAVE. 
          >> THANK YOU SO MUCH FOR WALKING US THROUGH THAT METHODOLOGY. 
          I'M ALWAYS INTERESTED IN JUST HOW DO YOU WAR GAME IT AND NAVIGATE IT. 
          [01:40:01]
IN THAT, WHAT I WOULD CALL, LIKE A RED TEAMING OR INNOVATION ROOM WHERE YOU GUYS PRESSURE TEST DIFFERENT POTENTIAL FRAUD AND WHATNOT, HAVE YOU EVER HAD, LIKE, A THIRD PARTY COME IN TO JUST GIVE A TOTALLY OUT OF THE BOX EXPERTISE, MAYBE THEY 
          COME FROM A DIFFERENT SPACE OR SOMETHING LIKE THAT? >> TYPICALLY -- I MEAN, IT REALLY IS THE AUDIT TEAM THAT'S INVOLVED, BUT WE'LL HAVE NEW TEAM MEMBERS, TYPICALLY THERE'S SOMEONE NEW, AT LEAST ONE PERSON NEW ON THE TEAM EACH YEAR, SO WE'LL HAVE, THAT AND THEN CERTAINLY WITH THE CITY'S AUDIT, HAVING THE OTHER FI FIRMS INVOLVED TOO DOES PROVIDE SOME ADDITIONAL I INSIGHT, BUT WE DON'T 
          INVOLVE THIRD PARTIES. >> OKAY. JUST CURIOUS. 
          AND THAT'S WONDERFUL. AND THEN WHEN PROPOSED THREATS, IF YOU WILL, OR RISKS, POP UP, DO YOU TRACK THAT, I MEAN, WITHIN THAT STIMULATED SPACE? WHAT WOULD THAT IMPACT LOOK LIKE FOR THE CITY? WHAT WOULD IT LOOK LIKE FOR US? DO YOU GO THROUGH THAT WHOLE REGIMENTS OF THAT, I GUESS, 
          ANALYSIS. >> YEAH. WE DO. 
          WE WOULD LUKE AT IT AND SAY, OKAY, IF THAT IS A RISK, WHAT WOULD THE -- WHAT COULD THE POTENTIAL IMPACT BE TO DETERMINE IS THIS A MATERIAL RISK OF ERROR, IS THIS -- YOU KNOW, KIND OF WHAT WOULD THE IMPACT BE TO DETERMINE HOW WE WOULD EVALUATE AND 
          POTENTIALLY TEST THAT GOING FORWARD. >> THAT'S AWESOME. 
          THANK YOU. >> SURE. >> VIAGRAN: THANK YOU. 
          BEN. DO YOU WANT TO SHARE? >> SO, CHAIR, I WAS GOING TO MENTION FOR THE COMMITTEE, I KNOW THAT MELANIE AND AMANDA TALKED ABOUT COMPONENT UNITS, AND EVERYBODY IS LOOKING AROUND, WHAT IS THAT. SO THAT'S A LOT OF ORGANIZATIONS WE OWN, LIKE CPS ENERGY OR SAN ANTONIO WATER SYSTEM THAT, BECAUSE WE OWN THEM, WE ROLL THEIR FINANCIAL STATEMENTS INTO OURS SO WE PRESENT A CONSOLIDATED VIEW FOR THE PUBLIC. BUT THOSE ARE DRIVEN BY ACCOUNTING STANDARDS, LIST OUT THE CRITERIA IN TERMS OF WHO MEETS THAT. 
          THERE ARE OTHER ORGANIZATIONS THAT EITHER THE COUNCIL APPOINTS BOARD MEMBERS TOE THAT WE EXERCISE A LOT OF CONTROL OR A LOT OF FINANCIAL DEPENDENCE ON US THAT MEETS THOSE REQUIREMENTS AND WE HAVE TO INCLUDE THEM IN THE FINANCIAL REPORTS. EXAMPLES OF THAT, LIKE, THE BROOKES DEVELOPMENT AUTHORITY, THE SAN ANTONIO POLICE PENSION FUND, SO THESE ARE ORGANIZATIONS THAT WE PICK UP THEIR FINANCIAL STATEMENTS AND WE HAVE TO CONSOLIDATE THEM AND REPORT THEM WITH OURS, WHICH, AT THE END OF THE DAY IS SUPPOSED TO PROVIDE A BETTER VIEW OF THE ORGANIZATION, BUT IT GETS BIG AND COMPLEX AT THAT POINT, BUT THAT IS WHY WE'RE DOING THAT, AND THAT'S WHAT SHE'S REFERRING TO WHEN TALKING ABOUT COMPONENT UNITS, INCORPORATING ALL OF THAT INTO OUR 
          FINANCIAL REPORT. >> VIAGRAN: THANK YOU, BEN, THANK YOU FOR CLARIFYING IT. 
          AND THANK YOU FOR THE ADDITIONAL INFORMATION IN THE APPENDIX, WHICH HAS THAT INFORMATION, AND THEN, AGAIN, TO MY NEW COMMITTEE MEMBERS, IF THERE'S ANY QUESTIONS OR OTHER REPORTS THAT YOU WOULD LIKE TO SEE FROM SOME OF THESE COMPONENT UNITS, I BELIEVE THAT IF THEY'RE NOT ONLINE, THEY SHO SHOULD -- WE SHOULD HAVE COPIES OF PAST YEARS 
          CORRECT, BEN? >> YES, MA'AM, ALL OF OUR PRIOR ANNUAL FINANCIAL REPORTS ARE ONLINE. WE'VE GOT A LOT OF 
          HISTORY THERE. >> VIAGRAN: SO IF THERE'S ANY QUESTIONS REGARDING THAT, TO TAKE A LOOK AT THAT. BECAUSE IT IS A LOT OF INFORMATION. 
          AND THANK YOU, ALL, I WAS LIKE IT'S THAT TIME AGAIN FOR YA'LL TO COMMUNICATE WITH US. I FEEL LIKE WE JUST SAW YOU. 
          SO THANK YOU SO MUCH FOR THE EFFORTS, AND IF THERE ISN'T ANY OTHER 
          [Consideration of items for future meetings
 ]
QUESTIONS, THE NEXT ME MEETING IS SCHEDULED FOR DECEMBER 3, 2025. 
          IF, BEFORE THAT MEETING I COULD GET YA'LL'S I INPUT ON THE -- ANY ADDITIONAL ITEMS YA'LL WOULD LIKE TO TALK FO FOR -- TALK ABOUT ON SOLICITATIONS, I KNOW YOU HAVE THE LIST, BUT THE NEXT MEETING IS SCHEDULED FOR DECEM DECEMBER 3, 2025. THE TIME IS NOW 10:49:00 A.M., MEETING IS NOW ADJOU
* This transcript was compiled from uncorrected Closed Captioning.