Nov 19, 2019 Audit and Accountability Committee on 2019-11-19 10:30 AM

[00:00:02]

OKAY.

GOOD MORNING, LADIES AND GENTLEMEN.

UH, PLEASE BE SEATED AND, UH, WELCOME TO THE MEETING OF THE AUDIT AND ACCOUNTABILITY COMMITTEE, UH, FOR NOVEMBER 19TH.

UH, COULD WE GO AHEAD AND, UH, TAKE ATTENDANCE, PLEASE? COUNCIL MEMBER TREVINO HERE.

COUNCIL MEMBER ROCHE GARCIA, COUNCIL MEMBER SOTO, COUNCIL MEMBER OR CITIZEN MEMBER TREVINO AND CHAIRMAN, COURAGE PRESENT.

WE DO HAVE A QUORUM CHAIR.

OKAY, WE HAVE A QUORUM.

UH, I'M SURE, UH, COUNCILWOMAN ROCHA GARCIA WILL JOIN US AS SOON AS SHE'S AVAILABLE FOR EVERYBODY ELSE.

WELCOME TO OUR COMMITTEE MEETING TODAY.

UH, WE HAVE, UH, SEVERAL ITEMS, UH, MANY ON CONSENT THAT I, UH, PRESUME OUR COMMITTEE MEMBERS HAVE HAD AN OPPORTUNITY TO LOOK AT.

UH, WE'VE GOT, UH, ONE PRESLY ONE, UH, EXCUSE ME, UH, HIGH PROFILE INDIVIDUAL CONSIDERATION ITEM, UH, WELCOME COUNCILWOMAN, AND, UH,

[1. Approval of the minutes from the Audit and Accountability Committee meeting on October 15, 2019]

SO MOVED.

OKAY.

THERE'S A MOVE, MOTION AND A SECOND FOR APPROVAL OF THE MINUTES FROM OCTOBER 15TH.

ALL IN FAVOR SAY AYE.

AYE.

AYE.

ANY OPPOSED? HEARING NONE.

OKAY.

THE MINUTES ARE APPROVED.

UH, AS I SAID, WE

[Additional Item]

UH, ALTHOUGH IT IS NOT ON OUR AGENDA, I CERTAINLY WOULD WELCOME, UH, PEOPLE WHO HAVE, UH, REQUESTS OF THIS COMMITTEE, UH, TO, FOR EXAMPLE, LOOK AT, UH, AREAS THAT WE SHOULD, UH, CONSIDER AUDITING TO HAVE AN OPPORTUNITY TO ADDRESS THE COMMITTEE ABOUT THOSE, UH, EVERY ITEM OR EVERY FINAL ITEM WE HAVE IN OUR NORMAL ORDER OF BUSINESSES, CONSIDERATION OF ITEMS FOR FUTURE MEETINGS.

AND A LOT OF TIMES THAT CONSIDERATION IS BROUGHT FORWARD BY COMMITTEE MEMBERS, BUT OFTENTIMES I THINK WE SHOULD BE WILLING TO HEAR WHAT THE PUBLIC HAS TO SAY ABOUT, UH, WHAT THEY THINK SHOULD BE ITEMS THAT THE, THE, UH, COMMITTEE SHOULD CONSIDER.

SO AT THIS TIME, I'D LIKE TO FIND OUT HOW MANY PEOPLE WE HAVE SIGNED UP AND, UH, GIVE THEM AN OPPORTUNITY TO SPEAK.

I WILL GIVE THEM THREE MINUTES.

I SEE.

I HAVE, UH, IT LOOKS LIKE FOUR PEOPLE.

UM, AND I DON'T KNOW IF THEY'RE ALL HERE.

I PRESUME THEY ARE.

THE, UH, FIRST PERSON TO SPEAK WOULD BE STAN MITCHELL.

STAN HAVE THREE MINUTES, AND I PRESUME YOU'RE GONNA BE TALKING ABOUT SOMETHING WE HAD, UH, DISCUSSED EARLIER.

ALSO, COUNCILMAN TREVINO HAD BROUGHT THIS TO MY ATTENTION THAT YOU WISH TO SPEAK ABOUT THIS BEFORE THE COMMITTEE.

IT HAS SOMETHING TO DO WITH THE SAN ANTONIO WATER SYSTEM.

YES.

OKAY.

YOU HAVE THREE MINUTES? YES.

THANK YOU.

GOOD MORNING, UH, COMMITTEE.

THANK YOU FOR YOUR SERVICE AS REPORTED, LAST MEETING, THREE OF US JOINED AN OCTOBER 12TH HOUR LONG INFORMAL CONVERSATION WITH CHAIRMAN COURAGE WHEN WE SHARED HIS CONCERN FOR IDENTIFIED ABUSES BY AN UN ELECTED UNREGULATED SAS UTILITY THAT COULD NOT BE CORRECTED BY AN ELECTED CITY COUNCIL THAT HAS A LIMITED POWER TO INTERVENE.

FOLLOWING YOUR OCTOBER 15TH COMMITTEE COMMITTEE MEETING, I WROTE CHAIRMAN COURAGE AND DELIVERED TO THE ELECTED COMMITTEE MEMBERS A NOVEMBER 9TH LETTER ANNOUNCING THE GOOD NEWS THAT THE 1992 SAWS FOUNDING ORDINANCE NUMBER 75 6 86 RETAINS CITY COUNCIL'S POWER TO REGULATE SAWS TO ILLUSTRATE SECTION THREE, TWO, ITEM V OF THAT ORDINANCE RESERVES THE COUNCIL, THE RIGHT BY ORDINANCE TO ABOLISH THE SAS BOARD OF TRUSTEES, AND THEREAFTER TRANSFER CONTROL, MAINTENANCE AND OPERATION TO THE SYSTEM, TO THE DEPARTMENT OF THE CITY.

THIS POWER TO DISMANTLE INCORPORATES AND VALIDATES CITY COUNCIL'S POWER TO REGULATE SAS, AND THIS ORDINANCE CLEARLY RETAINS OUR ELECTED CITY COUNCIL'S ACCOUNTABILITY FOR THE ABUSES OF AN UNELECTED SAS BOARD.

I HAVE A COPY OF THIS LETTER FOR THIS AUDIENCE AS WELL.

HAVING ESTABLISHED COUNSEL'S POWER TO CONTROL SAWS, COUNSEL'S

[00:05:01]

THANK YOU.

THANK YOU MR. MITCHELL.

NEXT, COLLEEN WARING.

MS. WARING, I NOTICED YOU GAVE, UH, A HANDOUT.

IS THAT CORRECT? YES.

IS THAT RELEVANT TO WHAT YOU'RE GONNA SAY RIGHT NOW? UH, YES, SIR.

OKAY.

JUST LIKE TO SEE THAT PASSED AROUND TO THE COMMITTEE MEMBERS.

THANK YOU.

THANK YOU FOR THE TIME.

UM, I'M COLLEEN WARING AND I OWN PROPERTY IN MILAM COUNTY, WHICH IS ONE OF THE SOURCES FOR, UH, THE MASSIVE WATER TRANSFER THAT THE VISTA RIDGE PROJECT CO CONSTITUTES.

BUT I'M ALSO A GOVERNMENT PERFORMANCE AUDITOR, AND ALTHOUGH I RETIRED FROM MY GOVERNMENT JOB, I STILL DO A LITTLE CONSULTING FROM TIME TO TIME.

I'M HERE TO TALK ABOUT THOSE PORTIONS OF THE VISTA RIDGE RESOLUTION.

THAT CALL FOR AN AUDIT.

AS A DISCLAIMER, I'M, I'M NOT LOOKING TO DO THOSE AUDITS.

MY OPPOSITION TO THE VISTA RIDGE PROJECT WOULD, UH, WOULD, WOULD DISQUALIFY ME AS, AS AN INDEPENDENT REVIEWER.

SO WHEN YOU READ THE DRAFT RESOLUTION, THE NUMBER OF, UH, ISSUES RAISED THEIR, UH, AND, AND, UH, PROPOSED FOR AUDIT, UH, MY FIRST REACTION, YOU MAY HAVE THE SAME REACTION AS I DID, WHICH IS NO AUDIT COULD DO ALL OF THAT.

AND SO WHAT I WANNA RECOMMEND TO THE AU AUDIT AND ACCOUNTABILITY COMMITTEE IS TO USE RISK ASSESSMENT PROCESS TO PRIORITIZE ALL OF THOSE ISSUES AND, AND START ATTACKING THEM ONE BY ONE.

I TOOK THE ISSUES, UH, LISTED IN THE WHITE PAPER THAT ACCOMPANIED THE RESOLUTION, AND I DID A QUICK AND DIRTY RISK ASSESSMENT.

THE FIRST STEP IN RISK ASSESSMENT IS TO DETERMINE THE RISK FACTORS THAT ARE GOING TO DRIVE THE RISK THAT YOU PRIORITIZE.

I USED ENVIRONMENTAL IMPACT, LEGAL AND FINANCIAL LIABILITY, THE SOCIOECONOMIC IMPACT ON SAWS RATE, PAYERS, CONTRACT NONCOMPLIANCE, RISK, AND FINALLY, INTEGRITY RISK, WHICH CONSIDERS THE POTENTIAL IMPACT OF ANY ETHICAL OR OTHER VIOLATION OF THE PUBLIC TRUST.

MY QUICK AND DIRTY RISK ASSESSMENT YIELDED THE FOLLOWING THREE TOP PRIORITIES FOR PERFORMANCE AUDIT.

FIRST, THE POTENTIAL MISAPPROPRIATION OF THE $120 MILLION BRIDGE LOAN TO ABENGOA.

THE SECOND TWO ITEMS WERE TIED FOR SECOND PLACE.

ONE IS THE SIGNIFICANT LIABILITIES CREATED BY VISTA RIDGE CONTRACT AMENDMENTS THAT HAVE NOT BEEN REVIEWED BY CITY COUNCIL.

AND THE OTHER IS THE RISK OF SIGNIFICANT IRREVERSIBLE DAMAGE TO THE SOURCE AQUIFERS.

EACH OF THESE PRIORITY AREAS IS WELL SUITED TO A PERFORMANCE AUDIT USING DIFFERENT TYPES OF EXPERTISE.

I'D ALSO LIKE TO RECOMMEND, UH, A DIFFERENT APPROACH BESIDES AN AUDIT TO DEAL WITH THE PUBLIC POLICY ISSUES RAISED BY SAS.

MY WRITTEN REMARKS GO INTO MORE DETAIL ABOUT THAT, BUT, UH, I THINK MR. MITCHELL RAISED THE FACT THAT YOU COULD INVOKE A SERIES OF PUBLIC HEARINGS AT WHICH THE FINDINGS FROM THE AUDITS COULD BE MADE PUBLIC AS WELL AS OTHER EXPERT TESTIMONY, PLUS INVITED TESTIMONY FROM SPECIFIC INTEREST GROUPS AND THE GENERAL PUBLIC.

AND THIS APPROACH COULD HELP THE CITY COUNCIL GET A HANDLE ON THE SAS POLICY ISSUES.

THANK YOU.

THANK YOU.

MS. UM, CAN STAND.

I HAVE A, I HAVE A FRACTURED BOOT ON WHEREVER YOU'RE COMFORTABLE.

THANK YOU.

MAKE SURE THIS WORKS.

YEAH,

[00:10:01]

UM, THE COMMENTS THAT ARE BEING HANDED OUT ARE A FULL VERSION OF THE STATEMENT I'M GONNA GIVE, AND I'M TRYING TO OBSERVE THE THREE MINUTE LIMIT AS BEST I CAN.

SO I'VE REALLY CONDENSED MY COMMENTS.

THANK YOU, CHAIRMAN.

COURAGE FOR ALLOWING TESTIMONY FROM CONCERNED CITIZENS WHO HAVE A KEEN INTEREST IN YOUR MISSION, HOLDING CITY AGENCIES ACCOUNTABLE.

I ALSO WANT TO THANK THE CITY COUNCIL MEMBERS HERE FOR SPEAKING UP AT A SPECIAL COUNCIL SESSION ON OCTOBER THE 31ST.

COUNCIL POSED MANY ASTUTE QUESTIONS REGARDING SAWS INITIATIVES, WHICH TRIGGERED CITY COUNCIL ACTIONS IN SUPPORT OF THE VISTA RICH PROJECT.

MY NAME IS ELLEN BURKEY, AND AS A LICENSED PROFESSIONAL ARCHITECT, I HAVE PREPARED CONTRACT DOCUMENTS FOR BUILDING PROJECTS LARGE AND SMALL.

IN RECENT YEARS, I HAVE JOINED THE VISTA RIDGE RESOLUTION COALITION AS A REPRESENTATIVE OF THE LEAGUE OF INDEPENDENT VOTERS.

I TRUST THAT ALL OF THE CITY COUNCIL MEMBERS ON THIS COMMITTEE HAVE READ THE COALITION'S DRAFT RESOLUTION, THAT THE COUNCIL MEMBERS HERE TODAY HAVE ALSO BECOME FAMILIAR WITH THE ORDINANCE IN WHICH THE SAN ANTONIO CITY COUNCIL CREATED SAWS IN 1992, AND THAT ALL MEMBERS OF YOUR COMMITTEE ARE AWARE OF THE, OF YOUR MANDATE TO HOLD THE SAN ANTONIO WATER SYSTEM AND AGENCY OF THE CITY ACCOUNTABLE FOR THE VISTA RIDGE PROJECT.

I WOULD LIKE TO AUGMENT STAN MITCHELL'S AND COLLEEN WARING'S EXCELLENT STATEMENTS BY DRAWING ON MY UNIQUE PERSPECTIVE AS A REGISTERED ARCHITECT WITH A SPECIAL INTEREST IN CONSTRUCTION QUALITY ASSURANCE SPOKESPERSONS FOR SAWS, A PUBLIC UTILITY HAVE MADE NUMEROUS REPRESENTATIONS ABOUT THE COST OF THE VISTA RICH PROJECT AND THE PROJECT'S RISK TO THE CITY AND ITS RATE PAYERS.

THESE ASSERTIONS MUST HAVE BEEN BASED ON EXPERT ANALYSIS FROM CONSULTANTS ADVISING THE SAWS UNDISCIPLINED RETENTION OF PROFESSIONAL CONSULTANTS FOR THE LARGEST GROUNDWATER TRANSFER PROJECT IN TEXAS.

HISTORY MAY EXPLAIN HIS PUBLIC ANNOUNCEMENTS IMMEDIATELY PRIOR TO THE 202,014 VISTA RIDGE COUNCIL VOTE, THAT RATES WOULD INCREASE A MERE 19% ON ACCOUNT OF VISTA RIDGE, AN ESTIMATE WHICH WAS UP TO MORE, TO A MORE CREDIBLE 52% FIGURE.

THE VERY NEXT YEAR AFTER A NATIONAL CONSULTANT WAS RETAINED TO REDO THE ENTIRE RATE STRUCTURE.

THERE ARE WAYS THAT THE CITY COUNCIL COULD BE COMPENSATED FOR SUCH ERRORS.

FOR EXAMPLE, A PROFESSIONAL CONSULTANT WHO NEGLECTED TO ADVISE THE CITY OF PRE-EXISTING EVIDENCE THAT THE WELLHEADS OF THE SOURCE AQUIFERS WERE WEREN'T LIKELY TO PRODUCE AS ANTICIPATED, MIGHT RESULT IN INDIRECT OR DIRECT DAMAGE TO THE CITY.

AND THAT CAN CONSULTANTS, HEIRS IN OMISSIONS INSURANCE COULD BE TAPPED TO HELP REMEDY THE PROBLEM.

TIMELY.

PERFORMANCE AUDITS CONDUCTED BY INDEPENDENT THIRD PARTY ENTITIES ARE NOT NOVEL OR UNUSUAL IDEAS, ESPECIALLY FOR PROJECTS WHICH HAVE ALREADY PRODUCED PAYMENT FS UPWARDS OF A BILLION DOLLARS JUST FOR CONSTRUCTION.

THE AMERICAN INSTITUTE OF ARCHITECTS PUBLISHES FORM CONTRACTS, WHICH MAY BE HELPFUL IN THIS REGARD AND LOGIC AND EXPERIENCE HAVE SHOWN THAT THE EARLIER, YOU KNOW, PATTERN OF MISREPRESENTATIONS AND ERRORS MAY BE DETECTED AND EXPLORED FURTHER, AND ALLOW CITY COUNCIL TO PROCEED WITH THAT INFORMATION TO MAKE PRUDENT AND TIMELY DECISIONS, WHICH WILL MINIMIZE DAMAGE TO THE CITY IN THE FUTURE.

THANK YOU.

THANK YOU, MR. NETTE CAME MORNING.

THANK YOU.

YOU HAVE TO HOLD IT DOWN.

GOOD MORNING.

THANK YOU SO MUCH, COUNCILMAN COURAGE.

THANK YOU DR.

GARCIA AND COUNCILMAN GAR TRAVINO AND, UH, CITIZEN MEMBER SOTO, FOR, FOR ALLOWING US TO SPEAK WITH YOU TODAY.

WE HONOR YOU FOR YOUR SERVICE TO OUR COMMUNITY.

MY NAME IS NETTE KING.

I'M A FORMER GOVERNMENT CONTRACTING OFFICER AND PRICE ANALYST FOR OVER 33 YEARS.

AND I

[00:15:01]

AND I OFFER MY SERVICES TO YOU TO HELP PROTECT SAS RATE PAYERS MONEY AS WELL.

I'M ALSO A MEMBER OF THE VISTA RIDGE RESOLUTION COALITION.

WE CURRENTLY CONSIST OF THE ALAMO SIERRA CLUB, THE GREEN PARTY OF BEXAR COUNTY ENVIRONMENTAL STEWARDSHIP FARM AND RANCH FREEDOM ALLIANCE, FOX RUN NEIGHBORHOOD ASSOCIATION, HIGHLAND PARK NEIGHBORHOOD ASSOCIATION, HOMEOWNER TAXPAYER ASSOCIATION OF BEXAR COUNTY OF THE JOSHUA INITIATIVE LEAGUE OF INDEPENDENT VOTERS OF TEXAS, LULAC CONCILIO, A PATISTA 43 93 SAN ANTONIO, MAKING BUREAUCRACIES ACCOUNTABLE, SIMSBORO AQUIFER WATER DEFENSE FUND, AND TEXANS UNITING FOR REFORM AND FREEDOM.

OUR PURPOSE IS TO SEE OUR DRAFT RESOLUTION INCLUDED WITH STAN MITCHELL'S NOVEMBER 9TH LETTER TO YOU.

ACKNOWLEDGED BY CITY COUNCIL COLLEEN WARING HAS JUST SHARED WITH US A METHOD FOR CONDUCTING AN AUDIT VERY EFFECTIVELY.

RATE PEERS ARE UPSET BY THE RATE HIKES AND DESERVED TO KNOW WHERE THEIR HARD UNEARNED MONEY IS BEING SPENT.

SAWS GAVE E AND GOA A $120 MILLION BRIDGE LOAN TO BUY PIPE FOR THE VISTAGE PIPELINE.

THE PIPE WAS NEVER PURCHASED.

VISTAGE, UH, UM, PRIVATE PARTNER E AND GOA WENT BELLY UP, AS WE WARNED, UH, NEVER RETURNED THE MONEY.

AND THE ARD REPORT SHOWED THAT 119 MILLION OF THAT MONEY WAS CYCLED THROUGH A NONPROFIT.

WE WANNA KNOW WHERE IS OUR MONEY.

THE MAN WHO OBTAINED THE WATER LEASES DID SO WHILE ON PROBATION HAVING PLED GUILTY TO A THEFT OF $2.4 MILLION.

ADDITIONALLY, THERE'S ALREADY A COST OVERRUN OF $50 MILLION ON ONE PORTION OF THE VISTA RIDGE PROJECT.

THE AQUA, UH, IOWA VISTA STATION, VISTA RIDGE HASN'T EVEN STARTED DELIVERING WATER TO SAN ANTONIO.

YET, SINCE THE PUBLIC UTILITY COMMISSION OF TEXAS CAN RAISE THE RATES GIVEN ADEQUATE GROUNDS SUCH AS RESTRICTED PUMPING, WE ARE ALL AT RISK.

WE NEED TO ASSESS WHERE, WHERE WE ARE AND PROCEED WITH CAUTION.

WE'RE DELIGHTED THAT AT THE OCTOBER 31ST SPECIAL BRIEFING OF COUNSEL BY SAS, MR. PUENTE WELCOMED AN INDEPENDENT AUDIT.

SASS IS HOLDING 488 DAYS OF CASH ON HAND, WHICH IS RATE PAYERS MONEY.

ASSUMING FUNDS ARE AVAILABLE, THAT IS MORE THAN SUFFICIENT TO PAY FOR A FULLY INDEPENDENT AUDIT THAT NEEDS TO BE MANAGED BY A THIRD PARTY, NOT SELECTED BY SAS.

THESE ARE ALL REASONS WHY WE'RE ASKING YOU TO REQUIRE A COST-EFFECTIVE AUDIT OF THIS PROJECT.

AND, UH, FOR YOU COUNCIL MEMBERS, I ASK THAT YOU PLEASE MOVE THIS, UH, RESOLUTION TO A COUNCIL VOTE.

THANK YOU SO MUCH FOR YOUR SERVICE.

THANK YOU, MS. KING, UH, TO GO AHEAD AND JUST, UH, GIVE A BASIC RESPONSE TO THE PRESENTATIONS.

UH, I WILL CONSULT WITH, UH, THE OTHER COMMITTEE MEMBERS, AND WE ALSO WILL CONSULT WITH OUR CITY ATTORNEY AND WITH OUR CITY AUDITOR AND DETERMINE IF THIS IS AN ISSUE TO BRING FORWARD AT AN UPCOMING, UH, COMMITTEE MEETING, UH, TO DECIDE IF THERE IS ACTION THAT WE CAN TAKE, UH, THROUGH THIS COMMITTEE.

I APPRECIATE YOU BRINGING THIS FORWARD, MAKING A PRESENTATION OF THIS INFORMATION.

WE WILL TAKE ALL THIS INFORMATION UNDER ADVISEMENT, LOOK AT IT CAREFULLY, AND WE'LL TRY AND REACH BACK OUT TO YOU THOSE WHO SPOKE TODAY, UH, TO LET YOU KNOW THE FUTURE INTENTIONS OF THIS COMMITTEE IN THIS AREA.

THANK YOU VERY MUCH.

[CONSENT AGENDA]

THE NEXT PART OF OUR AGENDA IS THE CONSENT AGENDA, AND, UH, WE HAVE SOME PRES SOLICITATION, HIGH PROFILE ITEMS, ITEMS NUMBER TWO AND THREE AND SOME POSTS, SOLICITATION, HIGH PROFILE ITEMS NUMBER FOUR, AS WELL AS FINAL INTERNAL INTERNAL AUDIT REPORTS, ITEMS NUMBER FIVE AND SIX.

ALL OF THESE WERE TRANSMITTED TO COMMITTEE MEMBERS IN ADVANCE, AND AT THIS TIME, UH, THEY ARE ON CONSENT.

I WOULD LIKE TO ASK IF ANY OF THE COMMITTEE MEMBERS WOULD LIKE TO PULL ANY OF THESE ITEMS FOR INDIVIDUAL CONSIDERATION AT THIS TIME.

OKAY.

OKAY.

HEARING NONE, AND I WOULD ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED TODAY.

SECOND.

OKAY.

I HAVE A MOTION AND A SECOND TO APPROVE THE CONSENT AGENDA ITEMS 2, 3, 4, 5, AND SIX.

ALL THOSE IN FAVOR SAY AYE.

AYE.

AYE.

ANY OPPOSED? OKAY.

HEARING NONE, THE CONSENT AGENDA IS APPROVED.

WE HAVE

[7. Neighborhood Improvements Bond Program - S. San Pedro Affordable Housing Redevelopment Project [Lori Houston, Assistant City Manger; Verónica R. Soto, Director, Neighborhood and Housing Services Department]]

UH, THIS IS ON NEIGHBORHOOD IMPROVEMENT BOND PROGRAM, AND WE'LL HAVE A PRESENTATION FROM, UH, VERO SOTO.

AND, UH, WE LOOK FORWARD TO HEARING THAT TODAY.

SO, MS. SOTO, THE FLOOR IS YOURS.

THANK YOU VERY MUCH.

YOU'RE WELCOME.

[00:20:06]

THE ITEM BEFORE YOU IS A PRES SOLICITATION BRIEFING FOR THE SOUTH SAN PEDRO AFFORDABLE HOUSING REDEVELOPMENT PROJECT.

THIS IS PART OF OUR NEIGHBORHOOD IMPROVEMENTS HOUSING BOND PROGRAM.

AND THE ITEM BEFORE YOU IS TO HAVE A, UH, AN R F P.

WE PROPOSE TO RELEASE IT IN DECEMBER, SO WE CAN SEEK A DEVELOPER TO CONSTRUCT RENTAL HOUSING AT A SITE, UH, FOUR 19 AND 4 25 SOUTH SAN PEDRO.

IN ACCORDANCE WITH THE COUNCIL ADOPTED URBAN RENEWAL PLAN.

UM, WE ARE HOPING THAT THIS WOULD BE A 9% LTX, SO OUR SCORING SYSTEM IS GOING TO INCENTIVIZE THE AFFORDABILITY LEVELS AT THAT, UM, KIND OF FINANCING.

AND THE ESTIMATED LAND VALUE IS 2 MILLION.

ELIGIBLE REIMBURSEMENT FROM THE HOUSING BOND WOULD BE 2 MILLION AS WELL.

THE PROPOSED TERM WOULD HAVE TO HAVE, UH, WOULD PROPOSE TO HAVE THE HOUSING, UH, IN THREE YEARS TO GET THE FINANCING AND DO THE CONSTRUCTION.

AND THIS WOULD BE A NEW CONTRACT.

SO THE SOLICITATION IS ASKING THAT A MINIMUM OF 50 RENTAL UNITS BE BUILT ON THIS SITE.

THIS IS A SMALL SITE, ALMOST AN ACRE, AND THAT THERE IS A POTENTIAL FOR A MIXED USE DEVELOPMENT ON THIS SIDE.

THE SCORING IS INCENTIVIZING THAT 50% OF THE UNITS BE AFFORDABLE TO FAMILIES OUT OR BELOW 80% A M I.

THAT'S WHAT THE URBAN RENEWAL PLAN REQUIRES, EVEN THOUGH THE POINT SYSTEM IS LOOKING TO HAVE SOME UNITS, 10% OF THE UNITS AT 30% A M I AND 40% OF THE UNITS ADD 50% A M I.

SO VERY DEEP AFFORDABILITY.

THE OUTREACH WILL BE THROUGH OUR PROCUREMENT OFFICE AS WELL AS THROUGH THE LIST OF PREVIOUS, UM, BIDDERS FOR RFPS OF THIS TYPE IN OUR OFFICES, THE EVALUATION MEMBERS INCLUDE ASSISTANT CITY MANAGER, LAURIE HOUSTON, MYSELF, A MEMBER FROM OUR NEIGHBORHOOD IMPROVEMENTS ADVISORY COMMITTEE FROM DISTRICT ONE, AND A MEMBER OF THE OFFICE OF URBAN RENEWAL, UH, SAN ANTONIO, WHICH IS HOW WE IMPLEMENT THE PROGRAM.

HERE ARE THE PROPOSED SCORING SYSTEMS. SO WE FOCUS A LOT ON DEVELOPMENT EXPERIENCE, THE GAP REQUEST, IF THEY HAVE A PARTNERSHIP WITH A NONPROFIT.

AND THE CAPACITY UNDERWRITING AND FINANCIAL CAPACITY OF THE ORGANIZATION IS IMPORTANT.

AFFORDABILITY IS VERY IMPORTANT.

SO THAT'S WHY THE POINTING SYSTEM DOES LOOK AT DEEPER AFFORDABILITY FOCUS ON FAMILY SIZED UNITS.

THAT MEANS TWO AND THREE BEDROOMS. WE ARE APPLYING THE S BETA LOCAL PREFERENCE AND VETERAN-OWNED SMALL BUSINESS POINTS AS WELL.

AND YOU CAN SEE THE MEMBERS OF OUR GOAL SETTING COMMITTEE.

I MENTIONED THAT.

UM, SHOULD THIS MOVE FORWARD, WE PROPOSE TO RELEASE THIS R F P ON DECEMBER 5TH.

WE WOULD HAVE A PRE-SUBMIT CONFERENCE, UH, EARLY NEXT YEAR.

IT WOULD BE DUE AT THE END OF JANUARY, 2020 THIRD, EVALUATION THE MONTH OF FEBRUARY WITH THE HOPE OF COMING BACK, UH, TO YOU IN MARCH OF 2020 AND TAKING THIS ITEM, UH, FOR COUNCIL CONSIDERATION SOMETIME IN APRIL.

SO WE CAN START, UH, THE CONTRACT IN MAY.

UM, AND THAT IS THE END OF THE PRESENTATION, UNLESS Y'ALL HAVE ANY QUESTIONS FOR ME.

THANK YOU.

THANK YOU.

UH, I HAVE, UH, A QUESTION RELATED TO THE, UH, EVALUATION CRITERIA ON SLIDE FOUR.

IS THAT EVALUATION CRITERIA STANDARD FOR CUSTOMIZED FOR THIS PARTICULAR PROJECT? AND HOW DOES IT VARY FROM OTHER SIMILAR PROJECTS? SO THIS IS, UM, THE SAME AS OTHER PROJECTS THAT HAVE GONE FORWARD RECENTLY.

UM, SO IT'S AN ORDINANCE, UM, THAT APPLIES.

I IMAGINE YOU'RE LOOKING AT THE LOCAL PREFERENCE POINT, THE VETERAN, UH, IN THE C BETA PROGRAM.

UM, WE HAVE USED C BETA FOR THE HOUSING BOND PROGRAM IN THE PAST.

UM, AND SO THOSE, UM, IN THE LAST UM, FEW MONTHS ARE NOW THE STANDARD THAT WE'RE UTILIZING.

UM, WE HAD NOT USED IN PREVIOUS RFPS FOR THE BOND PROGRAM, THE LOCAL PREFERENCE OR BETTER OWNED, UM, POINTS BEFORE.

OKAY.

UH, ANY OTHER MEMBERS HAVE QUESTIONS? YES, COUNCILWOMAN.

THANK YOU, CHAIR.

THANK YOU.

VERONICA, I HAVE A QUESTION ON YOUR EVALUATING VOTING MEMBERS.

WHAT, WHAT HAPPENS IF ONE OF THEM ISN'T ABLE TO PARTICIPATE? LIKE WITHIN THE TIME? DO YOU HAVE A BACKUP OR HOW DO YOU SELECT? I'M SORRY.

I'VE ALWAYS WONDERED THIS, SO I THOUGHT I'D ASK YOU.

SURE.

UM, SO WE DO HAVE BACKUPS.

UM, WE TRY AND ALWAYS HAVE A NIAC COMMITTEE MEMBER BECAUSE THEY REPRESENT THE DISTRICT AND THE NEIGHBORHOOD PERMIT ADVISORY COMMITTEE IS REALLY, UH, PART OF OUR

[00:25:01]

SO WE ALMOST ALWAYS WORK AROUND THEIR SCHEDULE.

UH, THERE ARE SEVERAL MEMBERS WHO ARE, UM, BOARD MEMBERS OF R S A, SO WE ALWAYS TRY TO FIND A GOOD FIT.

UM, BUT WE HAVE THE BACKUP THAT WE ASK THE CHAIR, VICE CHAIR IF ANOTHER MEMBER CANNOT BE PRESENT.

UM, IT'S CHALLENGING TO SCHEDULE ALL THESE FOLKS, BUT WE, WE WORK AROUND THE SCHEDULES TO MAKE IT HAPPEN, AND THESE MEMBERS KNOW HOW IMPORTANT THE EVALUATION PROCESS IS, SO THEY MAKE THEMSELVES AVAILABLE.

GREAT.

THANK YOU.

THANK YOU.

OH, GO AHEAD, CHAIR.

CAN I JUST ADD OR CLARIFY ONE, UM, ITEM ON THAT IS THAT WHEN WE DO HAVE BACKUPS, THAT'S MORE FOR WHEN THEY CAN'T, UH, PARTICIPATE IN THE EVALUATION PROCESS.

UH, SOMETHING COMES UP, WE MAY HAVE TO CHANGE OUT A COMMITTEE MEMBER, BUT, UM, IN TERMS OF THE EVALUATION ITSELF, WE WANT CONSISTENT MEMBERSHIP THERE.

SO ONCE SOMEBODY'S LOOKED AT INTERVIEWS OR A TYPICAL PROCESS, WE WANT THAT SAME PERSON ALL THE WAY THROUGH THE PROCESS.

I JUST WANTED TO CLARIFY THAT.

THANK YOU.

THANK YOU, BEN.

THANK YOU.

THANK YOU, CHAIR.

ANY OTHER QUESTIONS TO ANY OTHER? YES, THANK YOU.

UH, JUST TO CLARIFY, THE ESTIMATED VALUE, IS IT FOUR, 4 MILLION ALTOGETHER INCLUDING, UH, THE CONTRIBUTION OF LAND AND SITE READINESS, OR CAN YOU JUST BREAK THAT DOWN? YES, IT IS, UH, 4 MILLION.

IT'S ESTIMATED BECAUSE UNTIL WE GET THE PROPOSALS, WE DON'T KNOW, UM, WHAT THE CAUSE WILL BE, BUT WE KNOW THE LAND VALUE, UM, BECAUSE THAT'S WHAT WE'RE NEGOTIATING TO ACQUIRE THE SITE FOR.

AND SO WE'RE ESTIMATING BASED ON THE CONSTRUCTION TYPE THAT ABOUT 2 MILLION WOULD BE ELIGIBLE REIMBURSEMENT FROM THE BOND PRO PROGRAM ITSELF.

SO TOTAL 4 MILLION.

YES, MA'AM.

ONE OTHER QUESTION I HAVE, HOW MANY UNITS ARE WE TALKING ABOUT IN THE R F P? WE'RE SAYING A MINIMUM OF 50 UNITS, BUT WE KNOW THAT THERE'LL BE MORE UNITS, UM, THAN THAT.

BUT THAT'S THE MINIMUM THAT WE'RE PROPOSING.

UM, WE COULD GET IN A SITE THAT BIG, UH, 80, 90 UNITS OR SO.

SO WE'LL LEAVE THAT TO THE CREATIVITY OF THE PROPOSERS AND THEN THE PERCENTAGES OF AFFORDABLE UNITS.

SO, UM, WE'RE ASKING WILL VARY.

YES, IT'LL VARY BY THE NUMBER OF UNITS, BUT WE'RE ASKING THAT, UM, WELL, THE MOST POINTS WILL BE AWARDED FOR IF THEY PROPOSE 10% OF THE UNITS AVAILABLE AT 30% A M I AND 40% OF THE UNITS AVAILABLE FOR 50% A M I.

THIS IS USING THE INCOME AVERAGING APPROACH SO THAT WE HAVE THAT DEEPER AFFORDABILITY, WHICH WE CAN USE FOR OUR TAX CREDIT DEVELOPMENTS.

THANK YOU.

ANY OTHER QUESTIONS FOR COMMUNITY MEMBERS? OKAY.

UH, THIS IS A, A SOLICITATION OVERVIEW.

IT'S A PREVIEW.

UH, I DON'T THINK THERE'S ANY ACTION THAT'S REQUIRED.

IT'S A BRIEFING FOR US.

IS THAT CORRECT? THAT IS CORRECT.

CHAIR.

THERE'S NO ACTION.

OKAY.

UH, THEN I THINK THAT'S THE END OF THE QUESTIONS.

THANK YOU VERY MUCH.

I BELIEVE THAT THOSE ARE ALL THE ITEMS WE HAVE ON OUR AGENDA.

UH, THERE IS, UH, AS I SAID, THAT ONE, UH, SUGGESTION, CONSIDERATION FOR ITEMS FOR FUTURE MEETINGS.

IS THERE ANYONE WHO WANTS TO, UH, UH, ASK THE COMMITTEE TO CONSIDER ANYTHING IN FUTURE MEETINGS? OKAY.

UH, I WILL ASK THE COMMITTEE TO CONSIDER WHAT WAS PRESENTED TODAY.

UH, AND, UH, AS I STATED, I WILL ASK OUR AUDITOR, OUR CITY ATTORNEY, PROBABLY EVEN OUR FINANCIAL OFFICER, UH, FOR SOME OF THEIR INPUT AND UNDERSTANDING WHAT THE POSSIBILITIES ARE FOR CRAFTING, UH, AN AUDIT.

UH, THERE WAS INFORMATION THAT WAS PRESENTED AND I, WITH THE PERMISSION OF, UH, THE COMMITTEE, I MAY EVEN TAKE UP SOME OF THESE QUESTIONS DIRECTLY, UH, WITH THE, UH, THE SAWS, C E O, AND SEE IF THEY HAVE SOME ANSWERS TO THESE.

THAT MIGHT MAKE IT A LITTLE EASIER IF WE'RE GONNA DO ANY KIND OF A PROCESS OF AN AUDIT.

SO WITHOUT ANY OBJECTION, THEN THAT'S, THAT'S MY PLAN OF ACTION ON THAT ITEM.

OKAY.

OTHER THAN THAT, THEN THAT CONCLUDES OUR MEETING.

OKAY.

THANK YOU VERY MUCH EVERYBODY.

THANK YOU.