>> VIAGRAN: ALL RIGHT.THANK YOU. THE TIME IS NOW 10:05 A.M. ON OCTOBER 7, 2026, AND THE
[00:00:11]
MEETING OF THE AUDIT COMMITTEE IS NOW CALLED TO ORDER.MADAME CLERK, PLEASE CALL THE ROLL.
>> CLERK: CHAIR, WE HAVE QUORUM. >> VIAGRAN: I'LL BE ALLOWING THE MEMBER SPEAKERS TWO ROUNDS FOR COMMENTS PER ITEM WITH THREE MINUTES THE FIRST ROUND, THREE MINUTES THE SECOND ROUND. THE FIRST ITEM IS APPROVAL OF THE MINUTES . ARE THERE ANY CORRECTIONS TO THE MINUTES? CAN I GET A MOTION AND A SECOND TO APPROVE THE MINUTES? I'VE GOT 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: YES, WE HAVE TWO MEMBERS OF THE PUBLIC FOR
ITEM NO. 9. >> VIAGRAN: TWO MEMBERS FOR ITEM NO. 9.
THE FIRST IS MARY SCOTT WITH ACT FOR SA. MARY.
>> GOOD MORNING. MY NAME IS MARY SCOTT. I GO BY KATIE AND I WORK FOR ACT FOR SA. I'M HERE TODAY TO SPEAK ON ITEM 9, THE PROPOSED 2027 AUDIT PLAN. I WOULD LIKE TO THANK YOU FOR INCLUDING AN AUDIT OF POLICE OVERTIME IN THE PLAN FOR NEXT YEAR. WE APPRECIATE YOU LISTENING TO THE CALL THAT SEVERAL CITY COUNCIL MEMBERS AND COMMUNITY MEMBERS MADE ABOUT THIS. I WOULD LIKE TO ASK YOU TO DIG DEEPER WITH THAT AUDIT.
WE WOULD LIKE YOU TO LOOK INTO TOTAL COMPENSATION, GRANT MANAGEMENT, AND CONTRACTS. THESE ARE ALL IMPACTFUL AREAS OF SPENDING WHERE SAVINGS MIGHT BE FOUND. I WOULD ALSO LIKE TO ASK FOR THE FINDINGS TO BE MADE PUBLIC AND FOR AN AUDIT TO OCCUR EVERY THREE YEARS TO STAY ON TOP OF THINGS, ESPECIALLY WITH THE BUDGET GAP IN MIND. IT IS SO, SO CRITICAL THAT WE KNOW HOW OUR POLICE DEPARTMENT SPENDS THEIR MONEY, WHERE THEY RECEIVE THEIR GRANTS FROM, WHAT STRINGS THOSE GRANTS MAY COME ATTACHED WITH, AND WHAT THE CONTRACTS ARE THAT THEY'RE SIGNING. THANK YOU.
>> VIAGRAN: NEXT UP, CHRISTIAN NUNEZ. >> GOOD MORNING, CHAIR VIAGRAN AND MEMBERS OF THE COMMITTEE. MY NAME IS CHRISTIAN RAMIREZ AND I AM THE DIRECTOR OF ORGANIZING AT ACT FOR SA. I AM ALSO SPEAKING ON ITEM NO. 9 ON THE PROPOSED FISCAL YEAR 2027 AUDIT PLAN. FIRST AND FOREMOST, I WANTED TO THANK THE OFFICE OF THE AUDITOR FOR INCLUDING A THOUSAND-HOUR AUDIT OF POLICE OVERTIME. THE LARGEST IN THIS PLAN. IT ANSWERS THE CALL FIVE MEMBERS OF COUNCIL MADE EARLIER THIS YEAR. SAPD OVERTIME HAS NOT BEEN AUDITED SINCE 2020 AND IN 2024 THE DEPARTMENT SPENT $34 MILLION AGAINST THE $17.7 MILLION OVERTIME BUDGET. OVERTIME IS ONE ITEM.
THE CITY AUDITOR RANKS AUDITS BY SAFETY, FINANCIAL, FINANCIAL IMPACT, COMPLIANCE, AND PRIOR ISSUES. SAPD MEETS EVERY ONE OF THOSE CRITERIA. WE ASK FOR THREE CHANGES. FIRST, EXPANDED OVERTIME AUDIT TO COVER TOTALLY COMPENSATION, PAYOUTS, INCENTIVE, AND ASSIGNMENT PAY, AND BENEFITS. AS COUNCILMEMBER MEZA GONZALEZ SAID LAST MONTH, THE AUDIT SHOULD LOOK AT COST IMPACT, NOT JUST HOURS. SECOND, AUDIT GRANT MANAGEMENT AUDIT FOR SAPD. THIS PLAN ALREADY AUDITS GRANTS AT AVIATION AND AT THE HEALTH DISTRICT. POLICE GRANTS DESERVE THE SAME REVIEW, ESPECIALLY WHEN THEY COME WITH CONDITIONS THAT CAN PUT OUR CITY INTO IMMIGRATION ENFORCEMENT.
THIRD, GIVE SAPD THE SAME CONTRACT REVIEW THIS PLAN GIVES CONVENTION AND SPORTS FACILITIES. NOT JUST ONE CONTRACT BUT THE DEPARTMENT'S WHOLE CONTRACT MONITORING. THE 1,000 HOURS SET ASIDE FOR THE SPECIAL PROJECTS CAN COVER IT. FINALLY, WE ASK FOR PUBLIC PROGRESS REPORTS ON SAPD FINDINGS AND A RECURRENT AUDIT EVERY THREE YEARS. SAN ANTONIO FACES A SERIOUS BUDGET GAP AND CITY RESIDENTS DESERVE TO KNOW HOW OUR LARGEST DEPARTMENT
SPENDS THEIR MONEY. THANK YOU. >> VIAGRAN: THANK YOU.
ALL RIGHT. THAT IS THE END OF PUBLIC COMMENT.
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SO WE WILL GO ON TO THE INDIVIDUAL ITEMS. WE HAVE TWO PRE-SOLICITATION BRIEFINGS. MADAME CLERK, PLEASE READ THE CAPTION FOR ITEM 2.>> CLERK: ITEM 2 IS A BRIEFING ON THE RELEASE OF A SOLICITATION FOR AN ANNUAL CONTRACT FOR CUSTODIAL AND SUPPLEMENTAL CONVERSION SERVICES FOR THE ALAMODOME FOR AN ESTIMATED TOTAL VALUE OF $13,250,000 FOR AN INITIAL THREE-YEAR WITH TWO,
ONE-YEAR OPTIONS TO RENEW. >> CANTOR: GOOD MORNING, EVERYONE.
PATRICIA MUZQUIZ CANTOR. I WILL BE PRESENTING A PRE-SOLICITATION BRIEFING FOR CUSTODIAL AND SUPPLEMENTAL CONVERSION SERVICES AT THE ALAMODOME.
THE KEY SERVICES UNDER THIS AGREEMENT INCLUDE THE CLEANING OF THE VENUE, MAINTAINING PUBLIC RESTROOMS, COLLECTING AND DISPOSING OF TRASH AND RECYCLING MATERIALS. ALSO THE PROVISION OF SUPPLEMENTAL LABOR TO SUPPORT CITY STAFF DURING EVENTS. THIS SOLICITATION WILL BE A REQUEST FOR COMPETITIVE SEALED PROPOSALS. THE PROPOSED TERM IS A THREE-YEAR TERM WITH TWO, ONE-YEAR RENEWALS. THE ESTIMATED VALUE OF THIS CONTRACT IS $13.25 MILLION. THE FUNDING SOURCE IS FROM THE ALAMODOME FUND.
AND THE CURRENT CONTRACT IS SET TO EXPIRE MAY 31ST OF NEXT YEAR.
AS FAR AS OUTREACH, WE WILL BE NOTIFYING 295 VENDORS THAT ARE LOCATED IN THE CENTRAL VENDOR REGISTRY. FOUR WILL RECEIVE A TARGETED OUTREACH.
AS FAR AS ADVERTISING WILL OCCUR ON VARIOUS SITES, INCLUDING TVSA CHANNEL, THE COSA BIDDING AND CONTRACTING WEBPAGE, AND THE ELECTRONIC DAILY BUSINESS WEBPAGE .
THE VOTING MEMBERS FOR THE SOLICITATION WILL INCLUDE ASSISTANT CITY MANAGER ALEX LOPEZ, MYSELF, ALAMODOME ASSISTANT DIRECTOR, STEVE CEDO.
THE ALAMODOME CONVERSION OPERATIONS MANAGER, TOM MCAFEE, AS WELL AS RUBEN FLORES . THE EVALUATION CRITERIA WILL INCLUDE 30 POINTS FOR EXPERIENCE, BACKGROUND, AND QUALIFICATIONS. 40 POINTS FOR PROPOSED PLAN, 20 POINTS FOR PRICING, AND 10 POINTS FOR SBE. THE SOLICITATION REQUIREMENTS. AUDITED FINANCIAL STATEMENTS WILL NOT BE REQUIRED.
LOCAL PREFERENCE AND VETERAN-OWNED SMALL BUSINESS PROGRAM ARE NOT APPLICABLE TO THE SOLICITATION. AND THERE WILL BE A 14% SBEDA REQUIREMENT.
THE PERCENTAGE OF THESE AVAILABLE IN THE CENTRAL VENDOR REGISTRY AS WELL AS THE UTILIZATION OF EMERGING OF SMALL AND SMALL BUSINESS ENTERPRISES ON HISTORIC PROJECTS IS SIMILAR IN NATURE. THE PROJECT TIMELINE.
WE ARE PLANNING TO RELEASE NEXT WEEK, ON OCTOBER 12, THE RESTRICTION WILL START ALSO ON THAT DAY. THE PRE-SUBMITTAL CONFERENCE IS SCHEDULED FOR OCTOBER 26 AS WELL AS THE POLITICAL CONTRIBUTION WILL ALSO BLACKOUT DATE WILL ALSO START ON THAT DATE. THE DEADLINE FOR QUESTIONS WILL BE OCTOBER 28.
PROPOSALS WILL BE DUE ON NOVEMBER 30. EVALUATION, WE ARE PLANNING FOR IT TO BE COMPLETE ON FEBRUARY 5. THE CONTRACT WILL BE NEGOTIATED IN FEBRUARY. THE POST-SOLICITATION BRIEFING, WE ARE PLANNING FOR IT TO HAPPEN EARLY MARCH. A RESTRICTION ON COMMUNICATION AND FOR CITY OFFICIALS ON MARCH 10. AS CITY COUNCIL CONSIDERATION WILL BE MARCH 18. AND THEN RESTRICTION FOR CITY EMPLOYEES ON THAT COMMUNICATION WILL END MARCH 18L CONTRIBUTION BLACKOUT END DATE BEING APRIL 17. AND THE CONTRACT IS ANTICIPATED -- OR WILL START ON JUNE 1ST. THAT CONCLUDES MY PRESENTATION.
I'M AVAILABLE TO ANSWER ANY QUESTIONS. >> VIAGRAN: THIS IS A BRIEFING ONLY SO THIS IS -- WE ARE ABLE TO HAVE DISCUSSIONS.
WHAT MY ONE QUESTION IS -- THIS IS FOR THE CUSTODIAL SERVICES DURING THE EVENT OR
SIMPLY AFTER THE EVENT WHEN THEY COME IN AND CLEAN? >> CANTOR: IT'S PRE,
DURING THE EVENT, AND POST EVENT. >> VIAGRAN: ONE THING I WOULD LIKE TO SEE, BECAUSE POST EVENT -- AND PATRICIA, YOU KNOW I FEEL LIKE IT'S MY
[00:10:05]
JOB TO GO TO THE EVENTS TO MAKE SURE IT'S RUNNING SMOOTHLY.POST EVENT, IT'S PRIMARILY THE CLEANERS GET IN THERE, THEY PICK UP THE TRASH AND EVERYTHING LEFT BEHIND FROM THE CONCERTS. DURING, I KNOW IT'S KIND OF A DIFFERENT TEAM. THEY SOMETIMES HAVE A DIFFERENT UNIFORM, COLLARED SHIRT, MAYBE. I'M INTERESTED TO, AS YOU GO THROUGH THIS PROCESS, IF THEY'RE GOING TO PAY THE PEOPLE THAT ARE THERE THE WHOLE TIME CLEANING THE BATHROOMS A LITTLE MORE OR IF THERE'S SPECIALIZED TRAINING FOR THEM.
RIGHT NOW THEY DO A REALLY GOOD JOB OF, YOU KNOW, IF THERE'S A PROBLEM IN THE BATHROOM, IF NOTIFYING THE CORRECT PEOPLE, IF PEOPLE START GETTING UNRULY.
THINGS LIKE THAT. JUST MAKING SURE THAT THOSE ARE THE LITTLE TOUCHES THAT I THINK AS WE CONSIDER AND WE TALK TO THE VENDORS THAT ARE WANTING THIS CONTRACT THAT WE LET THEM KNOW THERE'S AN EXPECTATION. I UNDERSTAND SOMETIMES THEY COME IN AFTER THE CONCERTS, THE HEADSETS ON, AND THEY'RE JUST PICKING UP.
DURING THE EVENT THERE'S THAT INTERACTION IN THE HALLWAY, IN THE BATHROOMS, OH, YOU LOOK GOOD. THAT'S A NICE BLOUSE THAT I THINK ARE THE SMALL TOUCHES THAT PEOPLE WANT TO SEE WITH THE STAFF THERE AT THE ALAMODOME.
I APPRECIATE THAT AND JUST WANT TO GIVE THAT TO YOU GUYS AS Y'ALL GO MAKE YOUR DECISIONS FOR THIS. DOES ANYONE ELSE WANT TO MAKE A COMMENT REGARDING --
YES. >> JUST HAD A QUICK QUESTION FOR THE INTENDED PERSON OR GROUP THAT GETS THIS. WHAT IS YOUR ESCALATION PROCESS FOR MAYBE ISSUES, LIKE CHAIR BROUGHT UP, HOW DOES THAT GET BACK TO CENTER TO DECIDE WHAT TO DO NEXT
AND WHAT IS THAT LEAD TIME? >> CANTOR: AS FAR AS HOW WE RECEIVE ANY COMPLAINTS?
>> CORRECT. IF THERE'S ANYTHING OUT OF STANDARD OR EXPECTATION.
>> CANTOR: USUALLY WE HEAR ABOUT THEM DURING THE EVENT AND SO WE WORK WITH THE EVENT PLANNER OR INDIVIDUALS, INVOLVE THE SUPERVISORS THAT ARE THERE.
WE'LL TAKE CARE OF THE ISSUE, IF IT'S MISSING PAPER TOWELS OR THEY FEEL THAT THE RESTROOM OR THE AREA NEEDS TO BE CLEANED, THEY IMMEDIATELY, YOU KNOW, WILL TELL SOMEBODY. USUALLY IN SOME OF THE RESTROOMS WE HAVE EVENT ATTENDANTS OR THERE'S EVENT ATTENDANTS THAT GO AROUND. SO WE TRY TO FIX THE PROBLEM RIGHT AWAY. BUT IN OTHER CASES, SOMETIMES WE'LL GET IT THROUGH OUR ALAMODOME INFORMATION WEBSITE. AND THEN, YOU KNOW, WE'LL GO BACK AND WE'LL TAKE CARE OF IT OR RESOLVE THE ISSUE WITH A VENDOR, WITH A CONTRACTOR.
>> SO SHORT LEAD TIME. THAT'S GREAT. THANK YOU.
>> VIAGRAN: ANY OTHER DISCUSSION? THIS ITEM WAS FOR BRIEFING ONLY. WE'LL MOVE ON TO THE NEXT ITEM.
MADAME CLERK, PLEASE READ THE CAPTION FOR ITEM 3. >> CLERK: BRIEFING FOR RELEASE OF A SOLICITATION FOR AN ANNUAL CONTRACT FOR EVENT ATTENDANT AND SUPPLEMENTAL EVENT SECURITY SERVICES FOR ALAMODOME FOR AN ESTIMATED TOTAL VALUE OF $15 MILLION FOR AN INITIAL THREE YEARS WITH TWO, ONE-YEAR OPTIONS TO RENEW.
>> VIAGRAN: PATRICIA, THE FLOOR IS YOURS. >> CANTOR: THIS NEXT BRIEFING OR PRESENTATION IS FOR SUPPLEMENTAL SECURITY SERVICES FOR THE ALAMODOME.
SERVICE UNDER THIS SOLICITATION IS PROVIDING STAFF TO GUIDE PATRONS BETWEEN ENTRY POINTS AND SEATING AREAS. MANAGING ALSO TICKET COLLECTION AND VERIFICATION. ALSO, THE PROVISION OF SECURITY STAFF THAT WOULD BE SCREENING ENTRY, SECURING A RESTRICTED AREA SUPPORTING CROWD CONTROL, AND MAINTAINING A VISIBLE SECURITY PRESENCE. THIS SOLICITATION WILL BE ALSO A REQUEST FOR COMPETITIVE SEALED PROPOSALS.
THE PROPOSED TERM IS A THREE YEAR WITH TWO, ONE-YEAR RENEWALS.
AS WAS MENTIONED, THE ESTIMATED CONTRACT VALUE IS $15 MILLION.
THE FUNDING SOURCE AGAIN IS THE ALAMODOME FUND. AND THIS CONTRACT, THE CURRENT CONTRACT IS SET TO EXPIRE SEPTEMBER 30 OF NEXT YEAR.
AS FAR AS OUTREACH, WE ARE PLANNING TO NOTIFY OVER 362 VENDORS.
THREE WILL RECEIVE TARGETED OUTREACH. ADVERTISING WILL OCCUR AGAIN ON VARIOUS SITES THAT INCLUDE TVSA, COSA BIDDING AND CONTRACTING WEBPAGE, HEARTBEAT, AND THE ELECTRONIC STATE BUSINESS DAILY WEBPAGE .
THE EVALUATION MEMBERS FOR THE SOLICITATION INCLUDE ASSISTANT CITY MANAGER ALEX LOPEZ, MYSELF, ALAMODOME ASSISTANT DIRECTOR STEVE ZITO, ALAMODOME SECURITY MANAGER, DEVON LEWIS, AND ALSO SAN ANTONIO POLICE DEPARTMENT OFF-DUTY SERGEANT
[00:15:06]
CHRISTOPHER LUTTON. THE EVALUATION CRITERIA FOR THE SOLICITATION WILL INCLUDE 30 POINTS FOR EXPERIENCE, BACKGROUND, QUALIFICATIONS.40 POINTS FOR A PROPOSED PLAN, 20 POINTS FOR PRICING, AND 10 POINTS FOR SBE PRIME CONTRACT PROGRAM. SOLICITATION REQUIREMENTS. THE AUDITED FINANCIAL STATEMENTS WILL NOT BE REQUIRED. THE LOCAL PREFERENCE AND VETERAN-OWNED SMALL BUSINESS ARE NOT APPLICABLE FOR THIS SOLICITATION.
AND WE HAVE SET AN 11% SBEDA CONTRACT FOR THE SOLICITATION.
THIS IS SUPPORTED BY THE OPPORTUNITIES, THE PERCENTAGE VENDORS AUDIO], THE UTILIZATION OF EMERGING SMALL OR SMALL BUSINESS ENTERPRISES ON HISTORIC PROJECTS SIMILAR IN NATURE. THE PROJECT TIMELINE.
WE ARE PLANNING TO RELEASE THIS SOLICITATION OCTOBER 22.
THE RESTRICTION ON COMMUNICATION WILL START ON THAT DATE.
PRE-SUBMITTAL CONFERENCE IS SCHEDULED FOR NOVEMBER 5. THE POLITICAL CONTRIBUTION BLACKOUT DATE, AGAIN THAT SAME DAY. DEADLINE FOR QUESTIONS RIGHT NOW IS SCHEDULED FOR NOVEMBER 7. DUE DATE OF THE SOLICITATION IS PLANNED FOR DECEMBER 8. THE EVALUATION WILL BE COMPLETE EARLY MARCH.
THE CONTRACT WILL BE NEGOTIATED DURING THAT MARCH MONTH.
AND POST-SOLICITATION BRIEFING IS SCHEDULED FOR -- OR PLANNED FOR APRIL 7.
RESTRICTION ON COMMUNICATION FOR CITY OFFICIALS WILL BE APRIL 14.
WE ARE PLANNING TO TAKE THIS TO CITY COUNCIL FOR CONSIDERATION ON APRIL 22.
THE RESTRICTION ON COMMUNICATION FOR CITY EMPLOYEES WILL END ON THAT DATE. WITH POLITICAL CONTRIBUTION BLACKOUT DATE BEING MAY 22 AND THEN THE CONTRACT START DATE BEING OCTOBER 1ST. THAT CONCLUDES MY
PRESENTATION. >> VIAGRAN: THANK YOU. THIS ITEM IS FOR BRIEFING ONLY. SO WE'LL GO AROUND FOR COMMITTEE DISCUSSION.
AGAIN, BECAUSE I'VE BEEN TO THE EVENTS, AS WE TALK ABOUT SECURITY, THE MERCHANDISE LINE. FOR SOME OF THE EVENTS LATELY IT HAS BEEN CRAZY.
AND AGAIN, PEOPLE'S NERVES GET THERE. AS WE GO OUT, LETTING SECURITY KNOW THAT THERE ARE GOING TO BE SOME EVENTS WHERE SECURITY IS GOING TO NEED TO KEEP AN EYE ON THE MERGE LINE ON THAT ASPECT. THE OTHER IS WAS THE CAROL G. CONCERT WHERE SHE HAD POP-UPS FOR PHOTO OPS AND MAKING SURE THAT OUR SECURITY UNDERSTANDS HOW WE HAVE THE FLOW, UNDERSTANDING THERE IS GOING TO BE A CONGREGATION OR A LINE AROUND A PHOTO OP. THE ARTISTS KEEP ON GETTING VERY CREATIVE WITH THEIR -- WITH HOW THEY GET PEOPLE TO THE STADIUM EARLIER AND EARLIER, WHICH I APPRECIATE BECAUSE THAT MEANS THEY'RE AT THE CONCESSION.
BUT I THINK WE NEED TO MAKE SURE WHATEVER NEW CONTRACT FOR SECURITY DOESN'T MEAN JUST THE DOORS ANYMORE. IT'S MERCHANDISE LINES, IT'S PHOTO OPS.
DON'T EVEN GET ME STARTED ON DISNEY ON ICE BECAUSE THAT ONE WE NEED A LOT OF SECURITY TOO BECAUSE YOU'VE GOT KIDS ALL AROUND AND MAKING SURE THEY ARE NOT HEADED FOR A DOOR OUTSIDE. I REALLY APPRECIATE ALL THE HARD WORK.
I THINK WE'VE GOT OPPORTUNITY BUT WE NEED TO REMEMBER THAT THIS IS A CHANGING CROWD WITH DIFFERENT TECHNOLOGY AND THAT WE NEED OUR SECURITY TO BE WATCHING THAT. THANK YOU. I LOOK FORWARD TO SEEING THOSE WHO WANT TO PARTICIPATE AND TAKING THAT INTO CONSIDERATION AS WE MAKE OUR DECISION. ANY OTHER CONVERSATION REGARDING SECURITY FOR THE
ALAMODOME? COUNCILWOMAN MEZA GONZALEZ. >> GONZALEZ: WHAT'S THE SUPPLEMENT EVENT AGAIN? WHAT QUALIFIES AS A SUPPLEMENTAL EVENT?
>> CANTOR: SUPPLEMENTAL LABOR FOR ALL OF OUR TEMPORARY EVENTS.
WHENEVER THE CITY STAFF IS NOT ABLE TO COMPLETE THE TASK, THEN THAT'S WHEN WE REQUEST SUPPLEMENTAL LABOR TO HELP THEM DO THE CONVERSIONS OR THE EVENT
TRANSITIONS FROM ONE CONFIGURATION TO THE OTHER. >> GONZALEZ: AND THEN A
TEMPORARY EVENT IS WHAT AGAIN? >> CANTOR: ANY EVENT WE
HOLD IN OUR VENUE IS A TEMPORARY EVENT. >> GONZALEZ: IF WE'RE WORKING WITH A SCHOOL DISTRICT, DO WE STILL HOST GRADUATIONS THERE?
>> CANTOR: WE DO. >> GONZALEZ: DO THEY OFFER ANYTHING TOWARDS THE COST OF
SECURITY OR -- >> CANTOR: THEY PROVIDE RENTAL AND THEY DO PAY
EVENT-RELATED EXPENSES. >> GONZALEZ: TO INCLUDE SECURITY?
>> CANTOR: SO MANY OF THESE, LIKE FOR THE GRADUATIONS AND SOME OTHER
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EVENTS, IT'S NOT INCLUDED AS PART OF THE RENT. SO THEY DO HAVE TO PAY THE EVENT-RELATED EXPENSES. UTSA FOOTBALL, OTHERS LIKE THAT, THEY REIMBURSE US EVEN THOUGH WE DO HAVE AN APPROPRIATION WITHIN OUR BUDGET FOR THE -- YOU KNOW, TO PAY THE CONTRACTOR. WE DO GET REIMBURSED IN SOME OF THE CASES.>> GONZALEZ: I WOULD LIKE TO SEE THOSE REIMBURSEMENTS, IF THAT'S POSSIBLE.
IF YOU CAN SHARE WITH THE COMMITTEE. THANK YOU.
>> VIAGRAN: THANK YOU. THIS ITEM WAS FOR BRIEFING ONLY SO WE'LL MOVE ON TO THE NEXT ITEM. ITEMS 4 AND 5. THESE NEXT TWO ITEMS ARE POST-SOLICITATION BRIEFINGS. ITEM 4, MADAME CLERK, PLEASE READ THE CAPTION FOR ITEM 4.
>> CLERK: ITEM 4 IS APPROVAL TO PROCEED WITH SCHEDULING THREE CONTRACTS FOR CITY COUNCIL CONSIDERATION FOR THE HUMAN RESOURCES DEPARTMENT FOR TEMPORARY STAFFING SERVICES FOR AN ESTIMATED TOTAL VALUE OF $12,500,000 FOR THREE
YEARS WITH TWO, ONE-YEAR RENEWAL OPTIONS. >> VIAGRAN: RENEE, THE
FLOOR IS YOURS. >> GOOD MORNING. I'M GOING TO PRESENT THE POST-SOLICITATION ON OUR TEMPORARY STAFFING SERVICES. I APOLOGIZE FOR MY VOICE.
WE ISSUED THE RFP TO PROVIDE THE TEMPORARY STAFFING SERVICES TO ALL OF OUR CITY DEPARTMENTS. THE PROPOSED TERM IS FOR THREE YEARS WITH TWO OPTIONAL ADDITIONAL ONE-YEAR TERMS. EACH DEPARTMENT IS RESPONSIBLE FOR THE TEMP SERVICES FUNDS FROM THEIR ALREADY-APPROPRIATED BUDGETS. OUR CURRENT CONTRACT EXPIRES ON DECEMBER 21ST.
WE MET ON AUGUST 27 TO SCORE THE 26 RESPONSIVE PROPOSALS AND WHOSE SCORES ARE REFLECT HERE. WE'RE RECOMMENDING AWARD TO THE HIGHEST THREE VENDORS.
THIS ACTUALLY EXTENDS TO A SECOND PAGE. AS PART OF OUR DUE DILIGENCE, WE UTILIZE THE STATE'S CENTRAL VENDOR REGISTRY TO IDENTIFY POTENTIAL RESPONDENTS. WE NOTIFIED 156 RESPONDENTS. 58 OF THOSE ATTENDED OUR PRE-SUBMITTAL CONFERENCE. WE RECEIVED 60 INITIAL RESPONSES.
33 OF THOSE WERE DEEMED NONRESPONSIVE FOR FAILING TO MEET THE 6% SMALL BUSINESS SUBCONTRACTING REQUIREMENT. THAT'S DUE IN LARGE PART TO THE FACT THAT WITH THE LARGE NUMBER WHO RESPONDED, A LOT OF THOSE WERE PEOPLE WHO HAD NOT DONE BUSINESS WITH THE CITY AND THIS WAS THEIR FIRST RFP SUBMISSION. ONE WAS DEEMED NONRESPONSIVE FOR FAILING TO PROVIDE ALL OF THE REQUIRED DOCUMENTATION.
THAT CONCLUDES MY PRESENTATION BUT I'M HERE TO ANSWER ANY QUESTIONS YOU MAY
HAVE. >> VIAGRAN: THANK YOU, RENEE.
THIS ITEM IS TO MOVE FORWARD. CAN I GET A MOTION AND A
SECOND BEFORE WE BEGIN? >> MOTION TO APPROVE. DO I HAVE A SECOND? WE HAVE A MOTION AND A SECOND. WE CAN BEGIN DISCUSSION. DO ANY OF MY COLLEAGUES WISH TO GO FIRST? OKAY. YES.
DANNY. >> SO FOR THIS PARTICULAR SERVICE, IS IT SPECIFICALLY FOR HR OR ARE YOU WORKING WITH DIFFERENT DEPARTMENTS WITHIN THE CITY?
>> YEAH. THIS IS FOR THE ENTIRE CITY. SO IN THE EVENT THAT SOMEONE HAS A LONG-TERM ABSENCE FROM ONE OF THEIR EMPLOYEES OR THERE IS A GRANT PROGRAM OR SHORT-TERM PROJECT THAT ONE OF OUR CLIENT DEPARTMENTS NEED A TEMP FOR, THEY WORK
THROUGH THIS CONTRACT. >> DO YOU HAVE LIKE A BREAKDOWN OF WHAT DEPARTMENTS OR FUNCTIONS ARE REQUESTING THIS TYPE OF STAFFING?
>> IT REALLY GOES ACROSS THE CITY. THIS PAST YEAR OUR LARGEST USER WAS THE DEPARTMENT OF HUMAN SERVICES BECAUSE COUNCIL APPROVED A PILOT FOR EXTENDED SENIOR CENTER HOURS. BECAUSE WE KNEW IT WAS A PILOT WE HIRED ABOUT 30 TEMPS THROUGH THIS CONTRACT. MOST OF IT YOU'LL SEE A SPRINKLING OF TWO OR THREE PER DEPARTMENT BASED ON WHEN WE HAVE THOSE LONG-TERM
ABSENCES. >> THANK YOU. THAT WOULD BE GOOD TO SEE JUST A BREAKDOWN. I KNOW THESE EXAMPLES BUT JUST FOR OUR UNDERSTANDING, WHERE IS THIS MONEY GOING TO, WHAT DEPARTMENT OR FUNCTION IT'S FUNNELING TO.
>> VIAGRAN: THANK YOU. YEAH, IF WE COULD GET THAT. BECAUSE THE OTHER THING IS WE LOOK AT OUR TWO SUBCOMMITTEES, DANIEL SHOWED INTEREST IN QUALITY OF SERVICE AND CUSTOMER SERVICE SATISFACTION SO I THINK IT'S IMPORTANT THAT WE KNOW IS THE TEMP STAFF FULFILLING THAT EXPECTATION AND QUALITY OF SERVICE FOR THOSE
[00:25:08]
AVENUES.PROGRAM. I SEE IT WAS ONE OF MAYBE -- OUT OF THE 14 THERE WERE FIVE WHO WEREN'T ABLE TO DO SBEDA AND SBE PRIME. THAT'S INTERESTING TO ME.
I DO WANT TO MOVE IT FORWARD BUT I WILL HAVE QUESTIONS AS WE GET THE NAMES OF THESE CONTRACTORS ON WHY THERE ISN'T A SBEDA OR AN SBE -- WHY THEY DIDN'T GET THAT POINT. BECAUSE IF THEY HAD DONE THAT, THEY WOULD HAVE BEEN THE SECOND. BUT NOW THEY'RE THE THIRD. SO THAT'S VERY INTERESTING
TO ME THAT THEY DIDN'T HAVE THAT. >> CHAIR, ANA BRADSHAW.
IN ORDER TO RECEIVE THOSE TEN SBE PRIME POINTS, THEY HAVE TO BE A CERTIFIED SMALL BUSINESS. SO IN THIS CASE THAT FIRM WASN'T A CERTIFIED SMALL BUSINESS BUT THEY MET THE 6% SUBCONTRACTING REQUIREMENT BY SUBBING OUT TO A
CERTIFIED SMALL BUSINESS. >> VIAGRAN: OKAY. THANK YOU.
AND I THINK THAT'S -- AS I GET THE INFORMATION, IF THEY ARE A SMALL BUSINESS BUT THEY'RE NOT CERTIFIED, HOW WE CAN GET SUPPLY SA AND THE OTHER PROGRAMS THAT WE INVEST IN AROUND THE CITY TO MAKE SURE THAT WE GET THAT DONE FOR THEM.
BUT OTHER THAN THAT, I DON'T HAVE ANY OTHER QUESTIONS. DO ANY OF MY OTHER BOARD MEMBERS HAVE QUESTIONS? IF YOU COULD JUST GET US THAT INFORMATION IN TERMS OF THE DIFFERENT AGENCIES THAT ARE WORKING. I KNOW SENIOR CENTERS --
>> I DON'T KNOW IF IT'S HELPFUL BUT TODAY WE HAVE 90 TEMPS THROUGH OUR CURRENT CONTRACT ACROSS THE CITY. 39 OF THOSE ARE IN DHS. THE LARGEST PERCENTAGE IS IN DHS. WE HAVE ABOUT 15 IN ANIMAL CARE SERVICES WHO ARE ASSISTING WITH ADOPTION PROGRAMMING AND OPERATIONS. WE HAVE SIX WITHIN FINANCE FOR OUR SAP CONVERSION. AND THEN IT GOES DOWN TO ONE OR TWO PER DEPARTMENT.
SO WE ONLY HAVE ABOUT TEN DEPARTMENTS WITH ANY TEMPS AT ALL THROUGH THIS
CONTRACT. >> THE FIRST DEPARTMENT, YOU SAID THERE WERE 39 ROLES?
>> 39 ROLES AND THAT WAS THE DEPARTMENT OF HUMAN SERVICES THAT I MENTIONED WAS A PILOT PROGRAM. WE HAVE NOW AUTHORIZED PERMANENT POSITIONS BECAUSE THAT PROGRAMMING HAS EXTENDED HOURS HAS BECOME PERMANENT.
AND SO THESE TEMPS WILL BE GOING AWAY. >> MAKES SENSE.
THANK YOU. THAT'S WHERE MY QUESTIONING WAS GOING.
IF WE'RE ADEQUATELY STAFFED. IS IT COST BENEFICIAL TO HAVE THESE TEMPORARY OR
CONTINGENT ASSOCIATES VERSUS PERMANENT EMPLOYEES. >> WHEN A DEPARTMENT WANTS TO FILL A TEMP POSITION, WE REQUIRE IT TO COME UP THROUGH HUMAN RESOURCES AND WE EVALUATE THAT. IF THERE IS A POSITION THAT IS TRULY VACANT, THEN WE'RE NOT GOING TO FILL IT THROUGH A TEMP AGENCY UNLESS IT'S GOING TO TAKE A CONSIDERABLE TIME -- IT'S A HARD TO FILL POSITION. WE'RE GOING TO LOOK FIRST TO
HELP THEM FILL THEIR PERMANENT POSITION. >> THANK YOU.
>> VIAGRAN: THANK YOU. WE'VE GOT A MOTION AND A SECOND.
ALL IN FAVOR SAY AYE. >> SAY NO. MOTION CARRIES. ITEM NO. 5.
MADAME CLERK, PLEASE READ THE CAPTION FOR ITEM 5. >> CLERK: ITEM NO. 5 IS APPROVAL TO PROCEED WITH SCHEDULING ONE CONTRACT FOR CITY COUNCIL CONSIDERATION FOR THE CAPITAL DELIVERY DEPARTMENT TO PROVIDE CONSTRUCTION SERVICES FOR THE NEW FIRE STATION NO. 33, LOCATED AT 3935 CASTROVILLE ROAD IN COUNCIL DISTRICT 5
FOR AN ESTIMATED TOTAL VALUE OF $10 MILLION. >> VIAGRAN: MIKE, THE
FLOOR IS YOURS. >> SHANNON: GOOD MORNING. MY NAME IS MIKE SHANNON.
I'M THE DIRECTOR OF THE CITY'S CAPITAL DELIVERY DEPARTMENT.
EXCITED TO BRING THIS ONE FORWARD TODAY. IT'S ONE OF OUR 2022 BOND PROJECTS. IT'S A POST-SOLICITATION. SO THERE WE GO.
SO WE ISSUED AN RFCSP FOR A QUALIFIED CONSTRUCTION FIRM TO BUILD US THE FIRE STATION 33 REPLACEMENT PROJECT. IT'S PART OF OUR 2022 BOND PROGRAM.
AND IT WAS -- THIS IS LOCATED IN DISTRICT 5 ON CASTROVILLE ROAD.
THE PROJECT TERM WILL BE ABOUT 400 DAYS. ESTIMATED ABOUT $10 MILLION CONTRACT. AND THIS WILL BE A NEW CONTRACT FOR THE CONTRACTOR THAT WE SELECT. SO WE WERE HERE A LITTLE BIT AGO TALKING ABOUT PUTTING IT OUT ON THE STREET, GETTING BIDS FOR IT. WE DID GET 12 BIDS SUBMITTED. FOUR OF THEM WERE UNRESPONSIVE, WHICH LEFT US EIGHT TO SCORE. SO THE INITIAL SCORING MATRIX YOU SEE UP THERE, OF
[00:30:01]
THE EIGHT VENDORS, FIVE OF THE EIGHT WERE PRETTY CLOSE. WE KIND OF LIKED ASPECTS OF ALL OF THEM. THAT WAS THE COMMITTEE. THE COMMITTEE WAS MADE UP OF CERTAINLY MY TEAM, CAPITAL DELIVERY, FIRE DEPARTMENT STAFF, MARIA VILLAGOMEZ, DEPUTY CITY MANAGER. WE VETTED THOSE PROPOSALS. WE DID THEM ON EXPERIENCE, BACKGROUND, AND QUALIFICATIONS AT 35 POINTS. CERTAINLY UNDERSTANDING THE PROPOSED PROJECT THAT WE WERE TRYING TO BUILD AT THE LOCATION WE WERE TRYING TO BUILD, THAT WAS 30 POINTS OF IT. AND THEN EXPERIENCE WITH SAN ANTONIO REGION AND PAST PERFORMANCE. THAT'S A BIG IMPORTANT ITEM FOR US. 10 POINTS REQUEST LOOKED AT THERE.THE REMAINING WERE PRICE AND SBEDA TO GET US TO THE INITIAL SCORING.
AS I MENTIONED, FIVE OF THEM WERE FAIRLY CLOSE SO WE CHOSE TO ACTUALLY INTERVIEW ALL FIVE OF THOSE VENDORS A THROUGH E. AND WHEN WE DID THE INTERVIEWS, ONE FIRM REALLY CAME UP ON TOP WHEN WE REDID IT.
THAT'S UNDER A THERE. YOU CAN SEE THE POINTS ALLOCATED THERE.
YOU WILL NOTICE IT IS A SBEDA. THEY DID GET THE SBEDA POINTS DOWN BELOW. SO AGAIN, WE HAD 42 VENDORS NOTIFIED.
15 AT THE PRE-SUBMITTAL CONFERENCE. 12 WERE SUBMITTED BY THE DEADLINE. FOUR WERE DEEMED NONRESPONSIVE.
GOING THROUGH THAT PROCESS FOR THE EIGHT, WE DID GET A GOOD FEEL FOR EIGHT GOOD FIRMS THAT COULD DO IT BUT WE PICKED THE BEST ONE AND CERTAINLY NO MATERIAL FINDINGS WITH BOTH MINIMUM REQUIREMENTS OR ANY OF OUR DUE DILIGENCE PROCESS.
OUR RECOMMENDATION IS TO MOVE FORWARD WITH VENDOR A TO CITY COUNCIL FOR SELECTION. AND I WOULD BE HAPPY TO ANSWER ANY QUESTIONS.
>> VIAGRAN: THANK YOU. CAN I GET A MOTION AND A SECOND TO MOVE THE CONTRACT FORWARD TO THE CITY COUNCIL SO WE MAY BEGIN DISCUSSION? WE'VE GOT A MOTION AND A SECOND. WE CAN START DISCUSSION. PATRICIA, WE CAN START WITH
YOU. >> THANK YOU, CHAIR. APPRECIATE THE UPDATE THERE.
TRYING TO UNDERSTAND THE SCORING SYSTEM HERE FOR YOUR AWARD DESIGNATION FOR VENDOR A. IF YOU GO ON THE RECOMMENDED AWARD SLIDE, JUST WANTED TO UNDERSTAND PART B THERE, UNDERSTANDING THE PROJECT AND PROPOSED MANAGEMENT PLAN. WHAT IS A 23.8 LOOK LIKE VERSUS WHAT YOU WOULD
IN AUDIO] >> SHANNON: YEAH. REMEMBER WE HAVE SIX OR SEVEN OF US IN A ROOM KIND OF EVALUATING THE PROPOSED PLAN.
SO THE CONTRACTORS THAT SUBMITTED GIVE US THEIR EXPERIENCE WITH BUILDING THESE TYPE OF FACILITIES OR SIMILAR TYPE. A LOT OF POINTS GRANTED TOWARDS EXPERIENCE WITH FIRE STATION OR PUBLIC SAFETY-TYPE FACILITIES.
UNDERSTANDING OUR PROJECT PLAN, WE HAD A SPECIFIC SITE AND WE HAVE A SPECIFIC DESIGN THAT WE HAVE PUT OUT FOR THEM TO BID. THAT SITE IS A LITTLE CHALLENGING SO THERE'S SOME SITE LOGISTICS THEIR PLAN HAD TO OVERCOME.
23 OUT OF 30 IS IN KIND OF AN EXCELLENT TO VERY GOOD PLAN THAT WE DIDN'T FIND TOO MANY CHALLENGES WITH. ALL OF THEM HAD A PRETTY GOOD OR EXCELLENT PLAN.
AGAIN, WE EVALUATE THOSE, HOW THEY'RE GOING TO MEET IT, MEET OUR TIMELINE.
THE OPTIONS THEY PUT FORTH TO MAKE SURE THEY HIT OR EXCEED OUR TIMELINE.
MAYBE DO IT A LITTLE FASTER. THAT WAS PART OF THE PLAN WHEN WE INTERVIEWED THEM.
LONG-LEAD ITEMS, HOW THEY WOULD PROCURE THOSE QUICKLY. SCHEDULE AND BUDGET DURATION. HOW DO WE STICK WITHIN THOSE FOR THIS PARTICULAR PROJECT.
AND THEIR PLAN IS DIRECTLY TO THIS SITE. DOES THAT ANSWER --
>> IT DID, MOSTLY. THE PIECE I'M LOOKING AT TOO IS WHEN YOU GUYS ARE HAVING THIS MEETING AND THIS DISCUSSION, IS THERE A LEGEND YOU GUYS GO BY THAT HAS MORE FIDELITY THAN WHAT WE SEE HERE, LIKE 23 AND UP IS GOOD, YOU SAID, OR EXCELLENT. DO YOU GUYS OPERATE UNDER THAT SAME UNDERSTOOD
KNOWLEDGE OF WHAT THE SCORES ARE? >> SHANNON: YES.
AS A GROUP WE -- AS WE GO INTO THESE SCORING METHODS, WE KNOW WHAT EXCELLENT IS OUT OF A 30-POINT SYSTEM OR 35 POINT. WE HAVE A RANGE.
IF I THINK THAT PROPOSAL IS EXCELLENT OR IF I THINK IT'S GOOD OR FAIR OR POOR, I HAVE A RANGE THAT I'M WORKING IN AS THEY SCORE AND ALL OF THE COMMITTEE MEMBERS UNDERSTAND
THAT KIND OF RUBRIC. >> AS WE FACILITATE OUR EVALUATIONS FROM A FINANCE AND PROCUREMENT STANDPOINT, OUR PROCUREMENT SPECIALISTS GUIDE THE EVALUATION COMMITTEE THROUGH IT AND THEY ACTUALLY WILL PROVIDE, BASED ON THE TYPE OF PROCUREMENT, A GUIDE THAT DIVVIES UP THE SCORING INTO THIS IS WHAT WOULD REPRESENT AN EXCELLENT FIRM. THIS IS WHAT WOULD BE A GOOD FIRM.
THIS IS A POOR. AND SO WITHIN THAT GUIDE THERE'S A RANGE OF POINTS AND THEY USE THAT TO HELP GUIDE THEM THROUGH THE SOLICITATION AND THE
[00:35:03]
EVALUATION. >> OKAY. SO IF THERE'S DISAGREEMENT ON THE SCORING FOR A PARTICULAR CATEGORY, DO YOU JUST TAKE THE AVERAGE?
>> ELLIOTT: WHEN WE FACILITATE THE EVALUATION, THEY GO THROUGH TWO PARTS.
THEY DO A WRITTEN EVALUATION THAT'S FACILITATED. THEN THEY TYPICALLY BRING THEM IN FOR INTERVIEWS. THE EVALUATION TEAM, AS WE FACILITATE THAT EVALUATION, WE HAVE DISCUSSION ON ALL THE EVALUATION MEMBERS. WHAT DID YOU SEE? WHAT DID YOU LIKE ABOUT THE PROPOSAL? IF THERE WAS A DISAGREEMENT DURING THE EVALUATION OR THEY SAW SOMETHING DIFFERENTLY, THEN WE ENCOURAGE THEM TO TALK ABOUT IT. SOMETIMES THEY DON'T BECOME ALIGNED. THEY JUST -- IT'S THEIR SCORING.
BUT WE TRY TO FACILITATE THAT DISCUSSION TOWARDS ALIGNMENT ON THE SCORING.
AND IF THERE ARE DIFFERENCES, THEN WE TALK AND EXPLORE THOSE A LITTLE
MORE DEEPER. >> THANK YOU. >> VIAGRAN: COUNCILWOMAN
MEZA GONZALEZ. >> GONZALEZ: YEAH. I JUST HAD A QUESTION SIMILAR TO THE RESIDENT ON JUST WHAT THAT LEGEND LOOKS LIKE OR ON THE FINANCIAL SIDE, WHICH YOU JUST EXPLAINED. IF THERE'S A WAY WE CAN
BETTER UNDERSTAND THAT. I DON'T KNOW IF BY MEMO... >> ELLIOTT: YEAH, WE CAN DO IT AS PART OF OUR FOLLOW-UP MEMO TO THE COMMITTEE AFTER THIS MEETING. WE CAN PROBABLY GO INTO MORE DETAIL ABOUT WHAT THAT LOOKS LIKE. EACH OF THOSE EVALUATION GUIDES ARE TAILORED TO EACH INDIVIDUAL SOLICITATION. BECAUSE YOUR SCORING IS GOING TO CHANGE.
BUT WE CAN HELP DO THAT THROUGH THAT EVALUATION MEMO.
>> GONZALEZ: IS THAT A PROCESS CREATED ADMINISTRATIVELY OR DOES
THAT GO TO COUNCIL FOR APPROVAL? >> ELLIOTT: IT'S NOT SOMETHING THAT GOES THROUGH COUNCIL. IT'S SOMETHING THAT, THROUGH THE FINANCE DEPARTMENT AND THE PROCUREMENT DIVISION, WE FACILITATE.
WE WORK WITH THE DEPARTMENT. AND BASED ON THOSE EVALUATION CRITERIA, WE
DESIGN IT TO THAT. >> GONZALEZ: YEAH, I'M CURIOUS WHAT DIFFERENCE BETWEEN EXCELLENT AND VERY GOOD IS. MY 12-YEAR-OLD WOULD WONDER WHAT THAT IS. PROBABLY HAVE TO EXPLAIN THAT TO HER TOO.
BUT THANK YOU. I APPRECIATE IT. >> ELLIOTT: SURE.
>> VIAGRAN: MEMBER PACHECO, ANY QUESTIONS? TROY, IF YOU COULD GIVE US THAT MEMO. I THINK THE AUDIT COMMITTEE WOULD LIKE TO SEE DOES THIS NEED TO BE BROKEN DOWN A LITTLE MORE OR MAYBE WE NEED TO USE A DIFFERENT VOCABULARY AS WE TALK ABOUT SOME OF THESE ITEMS IN TERMS OF -- BECAUSE THAT'S A LOT IN ONE PROJECT AND PROPOSED MANAGEMENT PLAN. UNDERSTANDING THE PROJECT.
LIKE WHAT LEVEL OF UNDERSTANDING. BUT I LOOK FORWARD TO SEEING WHO VENDOR A IS. I KNOW THEY NEED A FIRE STATION IMPROVEMENT SO I'M LOOKING FORWARD TO THIS BOND PROJECT. WE HAVE A MOTION AND A SECOND TO MOVE FORWARD TO CITY COUNCIL. ALL IN FAVOR SAY AYE.
>> ALL RIGHT. WE ARE ON TO THE NEXT SET OF ITEMS, WHICH ARE THE FINAL INTERNAL AUDIT REPORTS. AND I THINK I SEE ABIGAIL COMING UP.
THE FLOOR IS YOURS. ARE WE GOING TO TAKE -- WE'RE TAKING THE AUDIT
REPORTS ONE AT A TIME? >> YES, MA'AM. >> VIAGRAN: ITEM 6.
>> DO YOU NEED TO READ IT, MADAME CLERK? >> CLERK: ITEM NO. 6 IS ACCEPTANCE OF THE OFFICE OF THE CITY AUDITOR REPORT AU25-033 AUDIT OF PWD
RIGHT-OF-WAY PERMITS. >> GOOD MORNING. MY NAME IS ABIGAIL AND I WAS THE AUDIT MANAGER FOR THE PUBLIC WORKS RIGHT-OF-WAY PERMITS AUDIT.
OVERALL, OUR OBJECTIVE WAS TO DETERMINE IF THE RIGHT-OF-WAY PERMITS WERE PROCESSED IN ACCORDANCE WITH THE APPLICABLE ORDINANCE TO INCLUDE BOTH PROGRAM ADMINISTRATION AND PAYMENT. OUR OVERALL CONCLUSION WAS THAT THE DEPARTMENT HAD EFFECTIVE CONTROLS TO ADDRESS 311 SERVICE REQUESTS AND DOCUMENT THE REASON FOR DENIED ROAD PERMITS. HOWEVER, WE DID IDENTIFY AREAS WHERE CONTROLS COULD BE IMPROVED OVER POLICIES AND PROCEDURES, PERMIT PHASE ACCURACY, FEE ACCURACY, AND ACCOUNTS RECEIVABLE MANAGEMENT. TO PROVIDE SOME BACKGROUND, THE RIGHT-OF-WAY DIVISION WITHIN PUBLIC WORKS IS RESPONSIBLE FOR MANAGING A VARIETY OF EXCAVATION AND NON-EXCAVATION PERMITS FOR ACTIVITIES THAT INVOLVE COSA'S INFRASTRUCTURE RIGHT. SO SAY SIDEWALKS AND LANES. BEFORE A CONTRACTOR CAN SUBMIT A RIGHT-OF-WAY PERMIT APPLICATION, THEY HAVE TO BE A REGISTERED RIGHT-OF-WAY CONTRACTOR WITHIN ACCELA. PUBLIC WORKS VERIFIES THESE CONTRACTORS HAVE THE APPROPRIATE INSURANCE COVERAGE, THAT THEY MEET BOND REQUIREMENTS, AND THAT THEY HAVE PAID APPLICABLE FEES. TO EXPAND, EXCAVATION PERMITS INCLUDE SIMPLE, COMPLEX, AND EMERGENCY, WHICH ARE RESERVED FOR UTILITY COMPANIES. AND NON-EXCAVATION PERMITS INCLUDE BLOCK PARTY, LANE AND SIDEWALK CLOSURE, AND PARKING RESTRICTION. TO GIVE US A SENSE OF VOLUME
[00:40:03]
IN FISCAL YEAR 2025, APPROXIMATELY 19,000 PERMIT APPLICATIONS WERE SUBMITTED WITH $5.4 MILLION IN REVENUE GENERATED. TO HIGHLIGHT A FEW POSITIVE RESULTS, PUBLIC WORKS WAS EFFECTIVELY ADDRESSING THE 311 SERVICE REQUEST THAT CAME IN THAT CORRESPONDED TO OPERATIONS FOR RIGHT-OF-WAY. AGAIN, WORK THAT'S BEING DONE IN SIDEWALKS OR LANES. ADDITIONALLY, PUBLIC WORKS WAS APPROPRIATELY DOCUMENTING THE REASON FOR DENIED RIGHT-OF-WAY PERMITS WITHIN THEIR SYSTEM OF RECORD, WHICH IS ACCELA. OUR FIRST RECOMMENDATION WAS OVER POLICIES AND PROCEDURES. WE DETERMINED THAT WRITTEN PROCEDURES AND CONTROLS WERE NOT SUFFICIENT TO ENSURE CONSISTENT RIGHT-OF-WAY EXECUTION.SPECIFICALLY WE IDENTIFIED ISSUES WITH INCONSISTENCY ACROSS DEFINING SIMPLE PERMITS, PARTICULARLY THE NON-EXCAVATION PERMITS THAT FELL WITHIN THIS CATEGORY.
AS WELL AS PERMIT APPLICATION REVIEW. BOTH ESTABLISHING TIME-FRAMES FOR NON-EXCAVATION PERMITS AS WELL AS ENSURING THAT EXCAVATION PERMITS WERE REVIEWED WITHIN THE DESIGNATED TIME-FRAMES.
LASTLY, WE IDENTIFIED INCONSISTENCY REGARDING THE SUPPORTING DOCUMENTATION THAT WAS UPLOADED WITHIN ACCELA TO SUBSTANTIATE THE EXECUTION OF EXCAVATION INSPECTIONS. WE RECOMMENDED THE DEPARTMENT MODIFY WRITTEN PROCEDURES TO MORE CLEARLY DEFINE THESE VARIOUS PERMIT TYPES ALONG WITH THE PROGRAM RETIREMENTS THAT APPLY TO EACH. AS WELL AS TO DEVELOP MONITORING CONTROLS TO ENSURE THESE POLICIES ARE EXECUTED AS INTENDED.
OUR NEXT RECOMMENDATION WAS OVER PERMIT PHASE ACCURACY. TO GIVE A LITTLE CONTEXT REGARDING HOW WE REACHED OUR CONCLUSION HERE, WE ANALYZED A SIX-MONTH PERIOD OF ACTIVE PERMITS WITHIN ACCELA TO TRY TO IDENTIFY IF THERE WERE ANY INDICATORS THAT PERMITS WERE MAYBE STAYING IN A PHASE LONGER THAN WAS MAKING SENSE, WHICH MIGHT INDICATE, HEY, THEY'RE NOT MOVING TO THE NEXT PHASE. DOES IT LOOK LIKE MAYBE THIS PERMIT NO LONGER BELONGS IN THE ISSUED PHASE AND SHOULD NOW MOVE TO COMPLETED? AND WE DID IDENTIFY A FEW INSTANCES. THEREFORE, WE CONCLUDED PUBLIC WORKS WAS NOT ENSURING THAT PERMITS WERE ASSIGNED ACCURATE PERMIT PHASES. SO WE RECOMMENDED THAT THE DEPARTMENT ESTABLISH MONITORING PROCEDURES BOTH TO IDENTIFY AND CORRECT POTENTIALLY INACCURATE PERMIT PHASES MOVING FORWARD. OUR NEXT RECOMMENDATION WAS OVER FEE ACCURACY. WE DETERMINED THAT PUBLIC WORKS DID NOT HAVE SUFFICIENT CONTROLS TO ENSURE RIGHT-OF-WAY FEES WERE ACCURATELY INVOICED.
SO THE ISSUES WE IDENTIFIED WERE OVER THREE TYPES OF FEES.
THE FIRST WAS OVER EMERGENCY EXCAVATION FEES. AGAIN, THESE CORRESPOND TO UTILITY COMPANIES. IT'S AN EMERGENT NEED, THE PERMIT IS ISSUED AND THEY'RE BILLED AT MONTH END. WE DID IDENTIFY A FEW INSTANCES WHERE THESE HADN'T BEEN CAPTURED AS FAR AS THAT PROCESS. ADDITIONALLY, PARKING RESTRICTION FEES WEREN'T CONSISTENTLY INVOICED IN ACCORDANCE WITH THE ESTABLISHED RIGHT-OF-WAY SCHEDULE. FINALLY, WITH VIOLATIONS, THE ISSUE WAS TWO-FOLD. ONE, WHENEVER THESE VIOLATIONS WERE BEING WAIVED, THERE WASN'T APPROPRIATE JUSTIFICATION EXPLAINING THE BASIS FOR THE WAIVER. AND IN INSTANCES WHERE THE VIOLATIONS WERE DEEMED APPROPRIATE, THEY WEREN'T CONSISTENTLY BEING INVOICED THAT $600 PENALTY.
AND AGAIN, THESE ITEMS HAVE CONTRIBUTED TO A LOSS OF RIGHT-OF-WAY REVENUE.
SO WE HAVE RECOMMENDED THAT THE DEPARTMENT ESTABLISH WRITTEN POLICIES AND PROCEDURES TO PROMOTE ACCURATE FEE ASSESSMENT AND ECHOING THE NEED FOR MONITORING PROCEDURES TO CONFIRM THAT THEY ARE EXECUTED AS INTENDED.
THE FINAL RECOMMENDATION PERTAINED TO ACCOUNTS RECEIVABLE MANAGEMENT.
WE DETERMINED THE PROCESSES WERE NOT PERFORMED IN ACCORDANCE WITH AD8.4 WHICH GOVERNS CITYWIDE ACCOUNTS RECEIVABLE. A FEW EXAMPLES, COLLECTION EFFORTS FOR PAST-DUE NON-EXCAVATION INVOICES WEREN'T CONSISTENTLY INITIATED. ADDITIONALLY, ACCOUNTS THAT EXCEEDED 120 DAYS PAST DUE WEREN'T CONSISTENTLY ESCALATED TO THE CITY ATTORNEY'S OFFICE FOR FURTHER REVIEW. THEREFORE, WE'RE RECOMMENDING THAT THE DEPARTMENT DEVELOP POLICIES AND PROCEDURES FOR MONITORING PAST-DUE ACCOUNTS IN ACCORDANCE WITH THE OVERARCHING CITY ADMINISTRATIVE DIRECTIVE.
THE DEPARTMENT AGREED WITH OUR RECOMMENDATIONS AND HAS DEVELOPED CORRECTIVE ACTION PLANS TO ADDRESS THESE ITEMS WITH THE LATEST COMPLETION DATE OF FEBRUARY 2027.
THAT CONCLUDES MY PRESENTATION BUT BOTH MYSELF AND PUBLIC WORKS ARE
[00:45:02]
AVAILABLE TO ANSWER ANY QUESTIONS YOU MAY HAVE. >> VIAGRAN: THANK YOU, ABIGAIL. ART, IS THERE ANYTHING THAT YOUR DEPARTMENT WOULD LIKE
TO SHARE BEFORE WE GO ON TO DISCUSSION? >> THANK YOU, CHAIR.
ART REINHARDT, PUBLIC WORKS. WE ACCEPT THEM. SOME OF THESE THINGS WE HAVE ADDRESSED THROUGH TRAINING AND WE HAVE HAD STAFF TURNOVER.
AND WE ARE UPDATING OUR STANDARD OPERATING PROCEDURES WE'RE GETTING MORE AGGRESSIVE. IF THERE ARE APPLICANTS THAT HAVE NOT PAID DUES PAST 90 DAYS, WE'RE NOT GOING TO ISSUE THEM PERMITS UNTIL THEY PAY. THAT'S SOMETHING WE HAVE IMPLEMENTED MOVING FORWARD.
WE ARE DEVELOPING OUR RESPONSE AND WE'LL HAVE THAT DONE BY FEBRUARY.
>> VIAGRAN: THANK YOU. CAN I GET A MOTION AND A SECOND TO ACCEPT THE AUDIT SO WE MAY BEGIN DISCUSSION? I'VE GOT A MOTION. DO I HAVE A SECOND? WE HAVE A MOTION AND A SECOND. ANY OF MY COUNCIL WOULD LIKE
TO ASK QUESTIONS? DANIEL. >> SO IT SOUNDS LIKE WE'RE MAKING SOME PROGRESS BUT I THINK WHAT STOOD OUT TO ME ON THE AUDIT REPORT IS THAT $954,000 BALANCE THAT IDENTIFIED AS OUTSTANDING. SO DO WE KNOW -- I GUESS SINCE THE AUDIT, HOW MUCH HAS BEEN COLLECTED AND HOW MUCH REMAINS OUTSTANDING
TODAY? >> YEAH, OF THE 954, WE HAVE COLLECTED ABOUT $142,000 OF THAT. THE REST OF THAT, WE'RE GOING THROUGH THE PROCESS CONSISTENT WITH THE AD TO START WRITING IT OFF. SOME OF THESE DATE BACK TO 2021, 2022. WE WON'T BE ABLE TO COLLECT THEM.
>> YOU MENTIONED THAT CONTRACTORS ARE NOT ALLOWED TO CONTINUE TO RECEIVE NEW PERMITS IF THEY HAVE DELINQUENT BALANCES. WHAT WAS THE THRESHOLD?
>> THAT'S A NEW POLICY. 90 DAYS. WE'LL START NOTIFYING AT 30 DAYS AND 60 DAYS AND THEN AT 90 DAYS. AFTER THAT I HAVE INSTRUCTED THE TEAM DON'T ISSUE THE PERMIT. THEY CAN CALL ME AND WE CAN
TALK ABOUT THEIR DELINQUENT PAY. >> MAKES SENSE.
THANK YOU. >> VIAGRAN: ANY OTHER MEMBERS?
COUNCILWOMAN MEZA GONZALEZ. >> GONZALEZ: A COUPLE OF QUESTIONS ON THE NEW POLICY ON THE 90 DAYS. IS THERE ANYTHING ON THE WEBSITE TO JUST KIND OF --
REMINDERS OR A LINK TO FREQUENT QUESTIONS? >> I DO NEED TO DOUBLE CHECK ON THAT. WE HAVE -- ON OUR WEBSITE WE DO HAVE THE SCHEDULE OF FEES AND ALL THAT AND THERE WERE SOME CHANGES WITH THE BUDGET.
WE'RE IN THE PROCESS OF UPDATING THAT. ONE OF THE RECOMMENDATIONS WAS TO CLARIFY SOME OF THE THINGS. I NEED TO FOLLOW BACK UP ON
THAT TO SEE IF WE'VE ADDED THAT PIECE. >> GONZALEZ: YEAH, I THINK THAT WOULD BE HELPFUL SO FOLKS CAN SEE IT BEFORE -- NOT THAT -- MAYBE IT HELPS THEM BUT JUST TO MAKE SURE THAT WE'RE COMMUNICATING AT EVERY LEVEL THAT WE CAN.
SO THE WEBSITE SEEMS TO BE THE MOST BASIC FORM OF COMMUNICATION THESE DAYS.
IF THERE'S ANY SORT OF, YOU KNOW, FREQUENTLY ASKED QUESTIONS PAGE OR SOMETHING THAT CAN HELP THEM. AND THEN YOU SAID THAT THIS WAS A NEW CHANGE SINCE THE AUDIT. I GUESS HOW WAS THAT COMMUNICATED TO THIS TEAM OR
WHAT ARE THE TARGETS WITHIN THAT NEW GOAL? >> AS WE REVIEWED THE FINDINGS OF THE AUDIT, REALLY IT WAS A SIMPLE INSTRUCTION FOR MYSELF AND ANTHONY TO THE TEAM. HEY, IF WE HAVE THESE REPEAT OFFENDERS THAT AREN'T PAYING AFTER THE 90 DAYS, STOP ISSUING THEM PERMITS. THEY CAN ESCALATE THAT TO
OUR OFFICE TO LOOK INTO. >> GONZALEZ: HAVE YOU SEEN THAT SINCE THE POLICY
CHANGE? >> PART OF THE $142,000 WE HAVE COLLECTED IS PART OF THAT PROCESS. AND JUST BEING MORE AGGRESSIVE IN GOING AFTER
THEM TO GET PAYMENT. >> GONZALEZ: IS THERE A SPECIFIC PERSON ON YOUR
TEAM? >> YEAH. WITHIN PUBLIC WORKS, WITHIN OUR STREETS DIVISION, WE HAVE OUR RIGHT-OF-WAY MANAGEMENT OFFICE, WHICH IS ABOUT 40 FOLKS. WE HAVE A NEW MANAGER SINCE EARLY THIS YEAR AND THEY'RE IN THE PROCESS RIGHT NOW OF UPDATING THE SOPS AND MAKING SURE EVERYTHING IS IN PLACE. WE HAVE HAD SOME TURNOVER IN STAFF THAT WAS PART OF THE
PROCESS THROUGH THE AUDIT AS WELL. >> GONZALEZ: MAYBE YOU
COULD USE A TEMP. >> YEAH. [LAUGHTER]
>> GONZALEZ: WE'VE GOT 90 OF THEM. >> ON THE FEE NOTICE WE'LL MAKE SURE TO PUT BUDDY'S CONTACT INFO ON THE PAYMENT PIECE.
>> GONZALEZ: I HAD A QUESTION. IT CONFIRMS THE SIMPLE PERMIT SET ISSUED PAST 30 DAYS. SO WERE THOSE COMPLETED WORK WITH AN OUTDATED STATUS OR WERE THOSE STREET THAT WAS NEVER RESTORED?
>> I BELIEVE YOU'RE TALKING ABOUT ON THE PERMIT PHASES WHERE THERE'S REVIEW, ISSUED, AND CLOSED. PART OF CHALLENGE WE HAVE HAD IS SOME OF THESE PERMITS THAT WE WERE ISSUING AS A SIMPLE PERMIT WERE LIKE OVERHEAD ELECTRIC LINES THAT REQUIRED A LANE CLOSURE OR WHATNOT. IT WASN'T EXCAVATION, WE JUST DIDN'T HAVE A PERMIT TYPE. NOT ONLY ARE WE DEVELOPING A NEW PERMIT TYPE, WE ARE STRENGTHENING OUR PROCESS. SINCE THERE WAS NO CALL FOR FINAL INSPECTION BECAUSE THERE WAS NOTHING BEING BACKFILLED OR PAYMENT
[00:50:03]
IMPACT, WE WEREN'T GETTING A CALL AND CLOSING IT OUT INTERNALLY.PART OF THAT IS NOT ONLY THE PERMIT PHASE DOCUMENTED BUT CREATING AN ADDITIONAL
PERMIT TYPE. >> GONZALEZ: OKAY. AND THEN THE 52 EXCAVATION PERMITS STUCK IN THE APPROVED STATUS, I THINK THERE WAS AN AVERAGE OF 266 DAYS. ARE THOSE -- WERE THOSE CONTRACTORS WAITING FOR THE
CITY'S INSPECTION STEP? >> NO. I'M NOT SURE IF ANTHONY HAS DETAILS ON THAT BUT THOSE WERE PROBABLY JUST NOT DOCUMENTED CORRECTLY IN OUR
SYSTEM. >> GONZALEZ: OKAY. ALL RIGHT.
THANK YOU. >> VIAGRAN: TRISHA. >> SO THIS MIGHT BE A QUESTION FOR THE AUDIT TEAM. HAVE WE SEEN SIMILAR CONTROLS, GAPS FOR PWD IN PREVIOUS AUDIT YEARS PRIOR TO THIS ONE? JUST TRYING TO ASSESS IN
THIS IS A TREND, A LONG-TERM THING THAT WE NEED TO... >> SPECIFIC TO PHASE
ACCURACY? >> YEAH. >> WELL, THIS WAS THE FIRST TIME -- WE HAVE LOOKED AT PUBLIC WORKS RIGHT-OF-WAY PERMITS BEFORE.
I WANT TO SAY THE LAST TIME WE HAVE DONE THIS AUDIT WAS BACK IN 2013.
BUT THEY MORE RECENTLY TRANSITIONED TO ACCELA. TO BE FRANK, WE HAVEN'T ASSESSED IT FROM THIS PERSPECTIVE BEFORE GIVEN THAT RECENT TRANSITION TO ACCELA AND THE REPORTS THAT WE CAN GENERATE OUT OF ACCELA WE WERE ABLE TO
PRODUCE THIS ANALYSIS. >> SO THIS WOULD BE THE BASELINE FOR THE FUTURE.
THAT MAKES SENSE. THE OTHER QUESTION I HAD, THE RIGHT-OF-WAY FEES NOT BEING ACCURATELY INVOICED. CAN YOU GUYS TALK A LITTLE BIT MORE TO THE WHY BEHIND THAT. I UNDERSTAND THERE IS LACK OF CONTROLS.
NUMEROUS LAYERS OF PROCESSES WERE EITHER CIRCUMVENTED, NOT USED, OR NOT SUFFICIENT.
JUST UNDERSTANDING THE ROOT CAUSE BEHIND THE RIGHT-OF-WAY FEES NOT BEING
PROPERLY INVOICED. >> I THINK PART OF THE CHALLENGE -- I'M NOT MINIMIZING THE FINDINGS AT ALL BUT THAT SAMPLE MONTH -- ABIGAIL ALLUDED TO ACCELA.
WE IMPLEMENTED ACCELA 2.0 WHICH MERGED WITH WHAT OUR DEVELOPMENT SERVICES IS USING AS WELL. I THINK THERE WERE SOME THING THAT WEREN'T CODED CORRECTLY AS PART OF THAT. BUT THERE HAS BEEN OTHER ITEMS -- NOT TRYING TO MINIMIZE IT BUT I THINK THAT'S PART OF WHAT WAS UNCOVERED IN THAT SAMPLE
MONTH. >> VIAGRAN: DANIEL. >> JUST A FOLLOW UP.
YOU SAID THERE'S SOME TIME-BASED GUARDRAILS IN REGARDS TO INVOICES.
HAVE WE THOUGHT -- OR IS THERE ANY GUARDRAILS -- LIKE IF A CONTRACTOR HAS A CERTAIN DOLLAR BALANCE. ARE YOU PUTTING SAFEGUARDS IN PLACE SO A CERTAIN CONTRACTOR CAN'T GO OVER A CERTAIN DOLLAR THRESHOLD? WOULD THAT HELP TOO?
>> WE HAVEN'T DEVELOPED ANYTHING IN THAT PERSPECTIVE.
IT'S REALLY JUST BEEN THAT INVOICE AND THEN THE TIME. CONSISTENT WITH THE ADMINISTRATIVE DIRECTIVE. IT'S SPECIFIC TO THE INVOICE.
I DON'T BELIEVE THERE'S ANYTHING ABOUT AN INDIVIDUAL COST.
IT'S JUST AS THE BALANCE EXCEEDS $5,000, 30 DAYS, 60 DAYS, ET CETERA, WE HAVE TO
NOTIFY. >> $5,000? >> I THINK THAT'S THE
MINIMUM THRESHOLD. >> VIAGRAN: THANK YOU, ART.
THANK YOU FOR THE BRIEFING. TROY, I THINK THERE'S GOING TO BE SOME FOLLOW-UP REGARDING THE PERMITS. I THINK WE NEED TO TAKE A LOOK AT WHAT PERMITS THAT WE HAVE, WHAT WE'RE CHARGING. IF WE'RE CHARGING APPROPRIATELY FOR SOME OF THE PERMITS. IT LOOKS LIKE IN THE SYSTEM YOU NEED TO DESIGNATE WHAT ACTUAL PERMIT IT IS SO WE CAN FOLLOW IT. SO WHEN WE DO THIS AUDIT AGAIN WE CAN HAVE MORE OF AN IDEA OF THIS IS THE PERMITS THAT PEOPLE ARE PULLING AND LOOKING FOR. I THINK IF IT'S GENERAL -- AND BECAUSE YOU'RE USING THE SAME WHAT IT MEANS IN DSD VERSUS PUBLIC WORKS COULD BE TWO DIFFERENT MEANINGS.
LOOKING AT THAT AND LOOKING TO MAKE SURE THAT THAT AMOUNT IS THERE.
YOU HAVE A LOT OF WORK TO DO ON PERMIT FEES. I KNOW I ASKED YOU TO CREATE A PEDDLER PERMIT FEE FOR ALONG MILITARY DRIVE. AGAIN, THAT WOULD BE SOMETHING THAT IF THEY'RE IN THE SAME SYSTEM HOW DO WE DEFINE IT CLEARLY.
I WOULD LIKE AN UPDATE, ONCE WE GET -- I GUESS FOR EVERY -- ONCE WE GET TO THE HALFWAY MARK, ART, AND Y'ALL HAVE COLLECTED AT LEAST HALF OF THAT AMOUNT OR YOU'VE CONTACTED THEM TO TELL THEM YOU'RE NO LONGER GETTING PERMITS.
IF YOU COULD GIVE THAT TO US IN A WRITTEN UPDATE FOR THE AUDIT COMMITTEE SO WE HAVE AN IDEA OF THE TIMELINE IT TOOK TO DO THAT COLLECTION. WE WOULD APPRECIATE THAT.
>> COUNCILWOMAN, HAPPY TO DO THAT. I WANT TO BE CLEAR THAT SOME OF THE OLD OUTSTANDING WORK ARE FROM COMPANIES THAT AREN'T IN BUSINESS ANYMORE.
[00:55:03]
THERE'S GOING TO BE SOME OF THAT MONEY NOT RECOVERABLE SO I WANT TO BE CLEAR FROMTHE BEGINNING. >> VIAGRAN: WE WOULD LIKE TO SEE HOW MUCH WE ARE ABLE TO GET AND WHAT WASN'T RECOVERABLE AND SEE IF WE CAN'T GET THE TIMELINES IN TERMS OF -- AND WE KNOW THIS INDUSTRY, IF THEY'RE OPERATING OR IF THEY'RE FORMER OWNERS OR OPERATING UNDER A DIFFERENT COMPANY'S NAME CURRENTLY.
WE WOULD LIKE TO SEE THAT. I WOULD LIKE TO SEE THAT AND I THINK THE COMMITTEE WOULD APPRECIATE THAT AS WE MOVE FORWARD. ALL RIGHT.
WE'VE GOT A MOTION AND A SECOND. THERE BEING NO OTHER
CONVERSATION, ALL IN FAVOR SAY AYE. >>
>> VIAGRAN: ALL OPPOSED SAY NO. MOTION CARRIES.
WE'RE MOVING ON TO ITEM 7. >> CLERK: ITEM 7 IS ACCEPTANCE OF THE OFFICE OF THE CITY AUDITOR
PROJECT. >> GOOD MORNING. MY NAME IS ABIGAIL ESTEVEZ.
I WAS THE AUDIT OUR OBJECTIVE WAS TO DETERMINE IF RESILIENCE AND SUSTAINABILITY'S MUNICIPAL ON-SITE SOLAR PROJECT WAS EFFECTIVELY IMPLEMENTED TO INCLUDE BOTH PROJECT MANAGEMENT AND COMPLIANCE WITH CONTRACT TERMS. OUR OVERALL CONCLUSION WAS THAT THE DEPARTMENT DID NOT HAVE ADEQUATE CONTROLS TO EFFECTIVELY MONITOR THIS PROGRAM. AT THE TIME OF THE AUDIT, POLICIES, PROCEDURES, AND CONTROLS OVER THIS PROGRAM EITHER DID NOT EXIST OR WERE INSUFFICIENT.
SPECIFICALLY, WE IDENTIFIED ISSUES WITH CONTRACT MONITORING, THE DOCUMENTATION OF BOTH SITE REPLACEMENT AND SITE INSPECTIONS, PAYMENT REQUEST APPROVAL, ENERGY SAVINGS CALCULATIONS, AND USER ACCESS.
SO TO PROVIDE SOME BACKGROUND, BACK IN NOVEMBER OF 2023, THE DEPARTMENT OF RESILIENCE AND SUSTAINABILITY EXECUTED A MASTER SERVICES AGREEMENT WITH CONTRACTOR BIG SUN, WHO WAS RESPONSIBLE FOR INSTALLING ROOFTOP PARKING AND CANOPY SOLAR SYSTEMS. THE GOAL OF THIS PROGRAM IS TO DELIVER APPROXIMATELY 13 MEGAWATTS BY COMPLETING SOLAR SITE INSTALLATIONS ACROSS COSA FACILITIES.
NOW ONCE THESE SITES ARE COMPLETED, THE DEPARTMENT ESTIMATES THAT $1.8 MILLION IN ANNUAL UTILITY SAVINGS WILL BE GENERATED. AS THESE SITES ARE COMPLETED, THEY ARE SUBJECT TO VARIOUS LEVELS OF INSPECTIONS AND THEY CONCLUDE WITH CPS INSTALLING AN ENERGY METER. AS OF FEBRUARY 2026, 22 SITES HAVE BEEN COMPLETED AND $12 MILLION HAS BEEN PAID FOR SOLAR INSTALLATIONS, OPERATION AND MAINTENANCE OF THESE INSTALLATIONS, AND THIRD-PARTY INSPECTIONS. OUR FIRST RECOMMENDATION WAS OVER CONTRACT MONITORING.
WE DETERMINED THAT THE DEPARTMENT LACKED CONTROLS TO ENSURE THAT KEY CONTRACTUAL REQUIREMENTS WERE MONITORED FOR BOTH BIG SUN, WHO IS THE PRIME CONTRACTOR , AND WEST/EAST ENGAGED TO PERFORM THESE THIRD-PARTY INSPECTIONS.
WE IDENTIFIED MONITORING GAPS AND COMPLIANCE ISSUES WITH INSURANCE, BONDS, AND LICENSES. THEREFORE WE RECOMMEND THAT THE DEPARTMENT REVIEW THE EXISTING CONTRACT ADMINISTRATION PLAN TO MAKE SURE THAT IT'S INCLUSIVE OF KEY CONTRACTUAL REQUIREMENTS AND THAT THEY ESTABLISH MONITORING CONTROLS TO ENSURE THAT THESE REQUIREMENTS ARE IN COMPLIANCE WITH THE CONTRACT. THE NEXT SET OF RECOMMENDATIONS PERTAIN TO DOCUMENTATION. THE FIRST OF WHICH WAS OVER SITE REPLACEMENT.
DOCUMENTATION WAS NOT MAINTAINED FOR THOSE SITES NOT ORIGINALLY IDENTIFIED IN THE MASTER SERVICES AGREEMENT. ADDITIONALLY, WHILE SOLAR SITE INSPECTIONS ARE PERFORMED, THERE IS OPPORTUNITY FOR IMPROVEMENT IN TERMS OF THE DOCUMENTATION. SO AGAIN, WEST/EAST IS THE THIRD-PARTY CONTRACTOR THAT PERFORMS THESE INSPECTIONS. AND THESE INSPECTION LETTERS WERE NOT CONSISTENTLY MAINTAINED. ADDITIONALLY, THERE WASN'T FURTHER DOCUMENTATION AVAILABLE TO CONFIRM WHETHER THE ISSUES THAT HAD BEEN IDENTIFIED IN THESE LETTERS HAD BEEN ADDRESSED PRIOR TO FINAL PAYMENT OR UTILITY CONNECTION. SO WE RECOMMEND THAT THE DEPARTMENT ESTABLISH WRITTEN POLICIES AND PROCEDURES FOR BOTH SITE REPLACEMENT AND INSPECTIONS AND THAT THEY DEVELOP MONITORING PROCEDURES TO MAKE SURE THAT THESE ARE EXECUTED AS INTENDED. OUR NEXT RECOMMENDATION WAS OVER PAYMENT REQUEST APPROVAL. WE REVIEWED BOTH A SAMPLE OF PAYMENTS TO BIG SUN AND WESTEAST AND WE DETERMINED THAT PAYMENT REQUESTS WERE PAID BEFORE INSPECTION DOCUMENTATION WAS RECEIVED OR NOT APPROVED BY FISCAL STAFF.
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THE INSPECTIONS HAD BEEN PERFORMED. THIS WAS MORE SO A DOCUMENTATION EFFORT, MAKING SURE THAT THE DEPARTMENT HAD RECEIVED THOSE INSPECTION LETTERS. SO WE RECOMMENDED THAT THE DEPARTMENT ESTABLISH WRITTEN POLICIES AND PROCEDURES FOR PAYMENT REQUEST REVIEW. AND AGAIN, ECHOING THE NEED FOR MONITORING PROCEDURES. OUR NEXT RECOMMENDATION WAS OVER ENERGY SAVINGS CALCULATIONS. WE REVIEWED FOUR QUARTERS' WORTH OF THESE CALCULATIONS AND DETERMINED THAT THEY WERE NOT COMPLETE OR ACCURATE.NOW, I DO WANT TO CLARIFY. WHAT WE ACTUALLY FOUND WAS THAT THE DEPARTMENT WAS UNDERREPORTING THESE CALCULATIONS. SOME OF THE CONTRIBUTING FACTORS HERE WERE THE CALCULATION IS A PRETTY MANUAL PROCESS SO THERE WERE A COUPLE INSTANCES WHERE THESE SITES WERE COMPLETED AND A COUPLE SITES HADN'T BEEN ADDED TO THE SPREADSHEET TO THEN CALCULATE THAT SITE'S QUARTERLY AMOUNT. BUT WE ALSO IDENTIFIED A COUPLE INSTANCES WHERE THE SITE HAD BEEN COMPLETED. IT HAD BEEN COMMISSIONED BUT THERE WASN'T A CPS METER ON THE SITE TO PROVIDE THESE ENERGY READINGS. AND AGAIN, THESE CALCULATIONS ARE SIGNIFICANT AS THEY'RE INTENDED TO REPAY DEBT, GO TOWARDS THE OPERATION AND MAINTENANCE PORTION OF THE CONTRACT. AND EVENTUALLY POTENTIALLY PAY FOR ADDITIONAL SITE INSTALLATIONS. SO WE RECOMMENDED THAT THE DEPARTMENT ESTABLISH WRITTEN POLICIES AND PROCEDURES AND THAT THEY DEVELOP MONITORING PROCEDURES. THE FINAL RECOMMENDATION WAS OVER USER ACCESS.
FOR THIS, WE REVIEWED ACCESS TO BOTH CORE 99, WHICH PRODUCES ENERGY PRODUCTION DATA AS PROVIDED BY BIG SUN AS WELL AS PRIME LINK, WHICH IS USED FOR CAPITAL PROJECTS. WHILE ACCESS TO CORE 99 WAS APPROPRIATE, ACCESS TO PRIME LINK WAS NOT. SO AGAIN, AS WE TYPICALLY DO WITH USER ACCESS RECOMMENDATIONS, EMPHASIZING THAT USER ACCESS REVIEWS BE PERFORMED, DOCUMENTED, AND AS NECESSARY, THAT SUSTAINABILITY AGREED WITH OUR RECOMMENDATIONS AND THEY HAVE DEVELOPED CORRECTIVE ACTION PLANS TO ADDRESS THESE ITEMS WITH AN ANTICIPATED COMPLETION DATE OF AUGUST 2026. THAT CONCLUDES MY PRESENTATION BUT BOTH MYSELF AND THE DEPARTMENT ARE AVAILABLE TO ANSWER ANY QUESTIONS.
>> VIAGRAN: THANK YOU. IS SOMEONE FROM RESILIENCE AND SUSTAINABILITY HERE THAT
WOULD LIKE TO SPEAK? >> GOOD MORNING. DIRECTOR OF THE RESILIENCE AND SUSTAINABILITY DEPARTMENT. I FIRST WANT TO SAY THANK YOU VERY MUCH TO THE AUDIT TEAM. THE AUDIT DID HELP US IN ADDRESSING AND ADDRESSING AREAS OF IMPROVEMENT FOR OUR DEPARTMENT.
AND REALLY CREATE THE POLICIES TO ENSURE THAT WE ARE, IN FACT, MEETING ALL THE APPROPRIATE CONTROLS AND PROCEDURES. I'M HAPPY TO SHARE THAT ALL OF THE FINDINGS FROM THE AUDIT HAVE BEEN ADDRESSED AS OF AUGUST '26 OF THIS YEAR.
AND IT'S IMPORTANT TO HIGHLIGHT THAT NONE OF THE SPECIFIC FINDINGS HAVE IMPACTED THE PROJECT PERFORMANCE GOALS. IT IS THE FIRST OF ITS KIND IN TEXAS AND REALLY THE FIRST OF ITS KIND TAKEN BY THE CITY IN TERMS OF SCALE, OF DELIVERY MODEL, AND THE MULTI-DEPARTMENTAL COORDINATION.
SO TO DATE, WE HAVE PRODUCED OVER $1.2 MILLION IN SAVINGS FROM THE 34 SITES THAT HAVE BEEN COMPLETED. AND AGAIN, ALL OF THE RECOMMENDATIONS, AUDIT RECOMMENDATIONS HAVE BEEN ADDRESSED AND WE HAVE DEVELOPED THE APPROPRIATE PROCEDURES AND CONTROLS AND ARE ACTIVELY MONITORING TO DATE.
>> VIAGRAN: THANK YOU. CAN I GET A MOTION AND A SECOND TO ACCEPT THE AUDIT SO WE CAN BEGIN DISCUSSION? OKAY. WE'VE GOT A MOTION AND A SECOND. I'LL BEGIN BECAUSE I SEE DOUG SITTING THERE.
THIS WAS KIND OF LIKE OUR BABY, IN TERMS OF RESILIENCY AND SUSTAINABILITY.
I WANT TO SPEAK TO THAT. I WANT TO THANK ABIGAIL AND THE TEAM AND BUDDY BECAUSE THANK YOU FOR DOING THIS SO EARLY ON IN THIS PROJECT. BECAUSE I'VE ONLY BEEN HERE FIVE YEARS AND FOR Y'ALL TO COME IN AND TO CATCH THIS, I REALLY APPRECIATE IT.
I DO WANT TO DISCLOSE TO THE AUDIT TEAM AND TO MY NEW COUNCIL MEMBER IS WHEN THEY BROUGHT THIS TO US, I KNEW THIS WAS GOING TO BE COMPLICATED.
I KNEW WE WERE GOING TO HAVE ISSUES. I THINK IT'S ONE OF THE REASONS -- AND IN ADDITION TO SOME OF MY COUNCIL MEMBERS NOT BELIEVING IN SOLAR POWER -- ONE OF IT WAS WE WANTED TO CATCH THIS EARLY ENOUGH SO WE COULD CONTINUE ON THE PLAN. WE WERE TALKING ABOUT BIG SOLAR.
WE WERE TALKING ABOUT EASTWEST. WE WERE TALKING ABOUT THE FACILITIES AND WE'RE TRYING TO GET THE SOLAR PANELS ON THE PUBLIC LIBRARY.
AND THAT HAS BEEN A CHORE. AND THEN WE'RE TALKING ABOUT MAKING SURE THAT EVERYTHING
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KIND OF WORKS TOGETHER AND WE'RE REPORTING WITH A VERY SMALL STAFF.AND SO I LAUGHED WHEN YOU SAID "CONTROLS." I WAS LIKE, THE CONTROL IS THEY HAVE A VERY SMALL STAFF TO DO ALL THIS. SO THANK YOU FOR ADDRESSING THE ISSUES BEFORE IT CAME BEFORE AUDIT. I APPRECIATE IT.
I FEEL THIS IS WHAT AUDIT IS SUPPOSED TO DO. I THINK IF WE HAD STAFFED YOU BETTER, IF WE HAD PUT MORE ADMINISTRATORS TO KIND OF CHECK THE POLICIES, WE WOULDN'T HAVE HAD AS MUCH FINDINGS. BUT THAT WAS A LIVE AND LEARN SITUATION AND A SITUATION OF FIVE YEARS AGO WHEN I GOT ON COUNCIL I HAD MEMBERS THAT WERE NOT FOR RESILIENCY AND SUSTAINABILITY.
THAT WERE NOT FOR DOING THIS INVESTMENT. AND I FELT LIKE THIS IS REALLY A STORY WE CAN TELL. AND I FEEL LIKE TELLING THE HICCUP STORY OR THE AUDIT STORY, I THINK WE GOT THIS DONE WELL ENOUGH. SO I KNOW TRISHA IS GOING TO ASK THE QUESTION. THIS IS THE BASELINE. THIS IS WHERE WE START LOOKING FOR THE PATTERNS AND I'M HOPING WE CONTINUE TO DO THIS ITEM SO WE CAN SEE IMPROVEMENTS. I THINK WHAT WE'RE GOING TO SEE IS WE NEED MORE STAFF AND WE NEED TO LIGHT A FIRE UNDER SOME OF OUR AGENCIES THAT ARE SUPPOSED TO GET US THOSE LETTERS THAT SAYS WE'VE DONE THAT. I KNOW THESE COMPANIES SO I KNOW THEY HAVE IT, IT'S JUST THEY NEED TO WORK WITHIN OUR TIMELINE AND START WORKING ON THAT. THANK YOU FOR THE PRESENTATION.
THANK YOU FOR ADDRESSING THE ISSUES. I LOOK FORWARD TO HEARING FROM MY MEMBERS. WHO WOULD LIKE TO GO FIRST? DANIEL.
>> YEAH, THANK YOU. GOT IT SPOT ON. HOW CAN WE INDEPENDENTLY ESTABLISH THAT THE CITY DID NOT PAY FOR INCOMPLETE OR DEFICIENT WORK AND WHEN THEY WEREN'T DOCUMENTED? I THINK SOME PAYMENTS WERE OCCURRING BEFORE THE DOCUMENTATION WAS EVER RECEIVED. I THINK IN THE TIME THAT WE'VE BEEN JOINING EVERY SINGLE MONTH, WE OBVIOUSLY DO AUDITS AFTER THE FACT.
BUT MAYBE DETERMINING HOW MUCH MONEY IS LOST, REVENUES ARE LOST.
WORKING WITH THESE DIFFERENT DEPARTMENTS, FUNCTIONS, AND THESE PROJECTS.
SO MAYBE AUDIT -- BUDDY AND HIS TEAM CAN DO AUDITS PRE, LIKE BEFORE THIS STUFF GETS IMPLEMENTED TO HAVE THOSE SAFEGUARDS IN PLACE. I KNOW BUDDY AND HIS TEAM WORKS TIRELESSLY BUT IF WE WERE ABLE TO DO LIKE A COST ANALYSIS OF JUST TODAY, I THINK THE $954,000 SPOKE VOLUMES TO THE RIGHT-OF-WAY. THAT'S A HUGE AMOUNT THAT WILL IT BE RECOVERED, WILL IT NOT? THOSE ARE MY CONCERNS.
>> VIAGRAN: THANK YOU. ANYONE ELSE? TRISHA.
>> I APPLAUD YOU GUYS FOR PUTTING TOGETHER REMEDIATION.
AND HERE IN AUGUST, LIKE YOU SAID, JUST INTERESTED IN
SUCCESSFUL AND STICKS. >> A LOT OF THE PROCEDURES WERE ALREADY IN PLACE.
AND JUST THE DOCUMENTATION WAS LACKING. SO IN MANY INSTANCES, FOR EXAMPLE WITH THE ISSUE THAT YOU RAISED WITH INSPECTIONS AND PAYOUT, THERE WAS VERBAL CONFIRMATION THROUGH THE MEETINGS WITH THE STAFF AND THE VENDOR TEAMS. IT WAS JUST A FORMAL DOCUMENTATION WITHIN THE SYSTEM THAT THE INSPECTION REPORT MAY HAVE LAGGED BEFORE THE PAYMENT WAS ISSUED.
SO WITHIN OUR CONTRACT MANAGEMENT ADMINISTRATION PLAN, WE'VE UPDATED IT.
THAT WAS ONE OF THE FIRST THINGS THAT WE DID IN THE REMEDIATION PLAN.
AND CURRENTLY OUR TEAM IS CONTINUOUSLY CHECKING AND HAS ESTABLISHED CONTROLS TO VERIFY THAT THOSE POLICIES ARE BEING MET AND TIMELINES -- REVIEW TIMELINES ARE BEING MET. WE HAVE ALSO DEVELOPED SPECIFIC POLICIES FOR EACH OF THE ISSUES THAT WERE IDENTIFIED SO WE CAN, ON A RECURRING BASIS, COME BACK AND REVIEW THE TYPE OF DOCUMENTATION AND SPECIFICALLY ADDRESS WHERE THERE ARE ISSUES, TO BE ABLE TO ADDRESS THOSE IN TIME AND WORK WITH THE VENDORS AS WELL AS THE OTHER STAKEHOLDERS THAT ARE CRITICAL FOR THIS PROJECT TO BE ABLE TO ADDRESS IT BEFORE. YEAH.
>> ALL RIGHT. THANK YOU, THANK YOU FOR THIS PRESENTATION.
SO WE HAVE A MOTION AND A SECOND. ALL THOSE IN FAVOR, SAY AYE.
AYE. ANY OPPOSED? MOTION CARRIES.
ALL RIGHT. WE ARE GOING TO MOVE ON TO ITEM NUMBER 8.
MADAM CLERK, PLEASE READ THE CAPTION FOR ITEM 8 >> ITEM 8 AS ACCEPTANCE OF THE
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OFFICE OF THE CITY AUDITOR REPORT AU25-036 AUDIT OF WORKFORCE DEVELOPMENT OFFICEREADY TO WORK PROGRAM. >> VIAGRAN: CAN WE GET A STAFF PRESENTATION?
>> YES. CHAIR, I'D LIKE TO PROVIDE SOME BACKGROUND ON THIS AUDIT.
I KNOW TYPICALLY, WE HEAR AUDITS THAT HAVE SIGNIFICANT ISSUES, JUST FROM A TIME CONSTRAINT PERSPECTIVE. WE DON'T GET TO DISCUSS GOOD AUDITS.
MOST OF THE TIME THEY'RE ON CONSENT. PART OF OUR METHODOLOGY USED TO INCLUDE HIGH-PROFILE AREAS, AND THIS IS A HIGH-PROFILE AREA, WHICH IS READY TO WORK.
OVERALL, THIS IS A REALLY GOOD AUDIT. I WANTED TO ADD THAT CONTEXT.
THERE WERE A FEW OBSERVATIONS, BUT OVERALL, AS YOU'RE GOING TO SEE ON THE POSITIVE SLIDES, THERE ARE A SIGNIFICANT NUMBER OF POSITIVE RESULTS. I WANTED TO ADD THAT CONTEXT FOR
THIS PRESENTATION. >> VIAGRAN: THANK YOU, BUDDY, FOR THAT.
ASE WENT THROUGH IT, I WAS LIKE, WHY IS THIS NOT ON CONSENT? BUT I APPRECIATE THE EFFORT.
SO THE FLOOR IS YOURS, THANK YOU >> THANK YOU. GOOD MORNING, MY NAME IS MICHAEL GUTIERREZ, THE AUDIT MANAGER OVER THE WORKFORCE DEVELOPMENT OFFICE READY TO WORK PROGRAM AUDIT, AND I'LL BE WALKING US THROUGH THE RESULTS. THE OBJECTIVE OF THE AUDIT WAS TO DETERMINE OF THE CONTRACTS FOR THE READY TO WORK PROGRAM WERE MONITORED AND IF THE PRIME AGENCIES AND THOSE PARTICIPATING WERE IN COMPLIANCE WITH THE KEY TERMS. THE AUDIT FOCUSED ON RECENTLY ADDED COMPONENTS TO THE READY TO WORK PROGRAM, WHICH INCLUDED ON-THE-JOB TRAINING AND INCUMBENT WORKING TRAINING PROGRAMS. AS WE GO THROUGH, I'LL BE REFERRING TO ON THE JOB TRAINING AS OJT AND INCOME BANT WORKER TRAINING AS IWT. WE'VE HAD EFFECTIVE CONTROLS FOR MONITORING CONTRACTS.
WE DID IDENTIFY AREAS WHERE IMPROVEMENTS COULD BE MADE REGARDING POLICIES AND PROCEDURES FOR VERIFYING THE FULL-TIME STATUS FOR TRAINING IN OJT AND IWT PROGRAMS AND USER ACCESS. SOME BACKGROUND ON THE READY-TO-WORK PROGRAM, THE PROGRAM IS AN EDUCATION AND JOB PLACEMENT PROGRAM. AND THE DEPARTMENT PARTNERS WITH.
GOALS. IN ADDITION, THE DEPARTMENT ALSO PARTNERS WITH LOCAL COMPANIES TO PROVIDE ACCESS TO DIRECT TRAINING FOR THE OJT AND IWT PROGRAMS. AS WE SEE THERE IN THE FIRST YEAR, THEY PARTNERED WITH 23 OJT EMPLOYERS AND 21 IWT EMPLOYERS.
MOVING ONTO THE RESULTS, WE'LL START WITH THE POSITIVE RESULTS. THE PARTICIPANTS ARE PROPERLY MEETING THE REQUIREMENTS. ALSO PRIME AGENCIES ARE PROVIDING UPDATES ON THE DELIVERABLES AND THEIR SERVICES PROVIDED AS OUTLINED IN THEIR CONTRACT.
IN ADDITION, PRIME AGENCIES ARE MEETING OR ON TRACK TO MEET THE GOALS OUTLINED IN THEIR CONTRACT. EMPLOYERS IN THE OJT/IWT PROGRAMS HAVE ALSO BEEN PROPERLY AUTHORIZED TO PARTICIPATE. IN ADDITION, PRIME AGENCIES AND EMPLOYERS ARE PROVIDING APPROPRIATE SERVICES AS OUTLINED IN THEIR CONTRACT. THE DEPARTMENT IS APPROPRIATELY REVIEWING INVOICES THAT ARE SUBMITTED BY THE PRIME AGENCIES AND THE EMPLOYERS TO ENSURE ACCURACY. THE DEPARTMENT IS SUFFICIENTLY MONITORING THE INSURANCE COVERAGE OBTAINED BY THE PRIME AGENCIES AND THE EMPLOYERS. AND LASTLY, THE DEPARTMENT AND THE ADVISORY BOARD ARE EFFECTIVELY WORKING TOGETHER TO ENHANCE THE PROGRAM.
OUR FIRST RECOMMENDATION IS OVER VERIFYING THE FULL-TIME STATUS OF OJT/IWT EMPLOYEES.
WE CONCLUDED THAT WDO IS NOT MONITORING THE EMPLOYEES IN THE PROGRAM TO VERIFY THEY ARE, IN FACT, FULL-TIME W2 EMPLOYEES, AS REQUIRED BY THE CONTRACT. WE REVIEWED PAYROLL RECORDS FOR 103 TRAINEES. WE WERE NOT ABLE TO VERIFY THE FULL-TIME STATUS FOR 13 TRAINEES DUE TO A LACK OF SUPPORT. WE RECOMMEND TO THE DEPARTMENT TO REVIEW CURRENT SOPS AND ESTABLISH MONITORING CONTROLS TO VERIFY THE TRAINEES IN THESE PROGRAMS ARE MEETING THE CONTRACTUAL REQUIREMENTS. OUR NEXT RECOMMENDATION IS REGARDING PERFORMANCE MEASURES.
WE CONCLUDED WDO IS NOT MONITORING ONE OF THE EIGHT PERFORMANCE MEASURES OF THE PRIME AGENCIES. WE REVIEWED SUPPORTING DOCUMENTATION FOR SEVEN PERFORMANCE MEASURES. WE DETERMINED THE DATA FOR ALL SEVEN WAS ACCURATE.
HOWEVER, WE WERE NOT ABLE TO OBTAIN SUPPORT TO CONFIRM THE DEPARTMENT AS MONITORING AND REPORTING THE EIGHTH MEASURE. THIS EIGHTH MEASURE IS THE MEASURE THAT TRACKS THE NUMBER OF PARTICIPANTS WHO RETAIN EMPLOYMENT FOR OVER A YEAR AFTER BEING PLACED IN A JOB.
SO WE RECOMMEND TO THE DEPARTMENT TO REVISE THEIR EXISTING PROCEDURES JUST FOR VERIFYING THE AGENCIES ARE IN COMPLIANCE WITH ALL PERFORMANCE MEASURES TARGET AND ALSO TO
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ESTABLISH CONTROLS TO ENSURE THE PROCEDURES ARE EXECUTED AS INTENDED.AND OUR FINAL RECOMMENDATION IS REGARDING USER ACCESS TO SYNC. SYNC IS A PLATFORM USED BY THE DEPARTMENT, BY THE PRIME AGENCIES TO DOCUMENT THE PROGRESS OF THE PARTICIPANTS IN THE PROGRAM. WE REVIEWED ACCESS TO SYNC FOR 36 COSA USERS, AND ACCESS WAS APPROPRIATE. HOWEVER, ACCESS WAS INAPPROPRIATE FOR 3 APPROXIMATE OF THE 30 NON-COSA USERS. WE REVIEWED 13 USERS AND DETERMINED 4 WERE NOT PROPERLY DEACTIVATED. WE RECOMMEND FOR THE DEPARTMENT TO ESTABLISH POLICIES AND PROCEDURES TO USE THE REVIEW CONDUCTED BY THE ALAMO NETWORK, THE AACN, AND ALSO ESTABLISH PROCEDURES THAT REQUIRES THE PRIME AGENCIES TO INFORM THE AACN WHENEVER AN EMPLOYEE AS SEPARATED AND NO LONGER NEEDS ACCESS TO SYNC. WDO AGREED WITH OUR RECOMMENDATIONS AND HAVE ALREADY DEVELOPED AN ACTION PLAN WITH AN ANTICIPATED COMPLETION DATE OF AUGUST 2026. THAT CONCLUDES MY PRESENTATION. WDO AND MYSELF ARE AVAILABLE TO
ANSWER ANY QUESTIONS. >> VIAGRAN: AND WE HAVE SOMEBODY FROM WDO HERE TO SPEAK?
COME ON UP. >> GOOD MORNING, EVERYONE. MICHAEL SINDEN WITH THE WORKFORCE DEVELOPMENT OFFICE. I WANT TO THANK THE CITY AUDITOR'S OFFICE FOR PROVIDING A THOROUGH REVIEW OF BOTH OUR SYSTEMS AND PROCESSES. THEY LOOKED AT APPROXIMATELY 20 DIFFERENT TESTS OVER A YEAR-LONG PERIOD. AND WE WERE LARGELY PLEASED WITH THE RESULTS. ALL THREE FINDINGS DISCUSSED HERE THIS MORNING HAVE BEEN ADDRESSED AND CURED AS OF AUGUST 2026, AND ALL STANDARD OPERATING PROCEDURES TIED TO THOSE
FINDINGS HAVE BEEN UPDATED. THANK YOU. >> VIAGRAN: ALL RIGHT.
I WAS PLEASED WITH THE AUDIT. I HAVE NO COMMENTS, BUT WE DO NEED A MOTION AND A SECOND TO START DISCUSSION. I HAVE A MOTION. DO I HAVE A SECOND? WE HAVE A MOTION AND A SECOND. ANY OF MY MEMBERS WANT TO GIVE INPUT?
DANIEL. >> PERFECT. THANKS FOR THE PRESENTATION.
SO I WAS REVIEWING THIS REPORT WHEN WE RECEIVED IT. I ACTUALLY HAVE THREE QUESTIONS.
IF WE CAN GET THESE DOCUMENTED IN WRITING. BUT MY FIRST QUESTION IS, JUST GIVEN THAT THE PURPOSE OF READY TO WORK IS ULTIMATELY SUSTAINABLE EMPLOYMENT, RIGHT? WHY WAS THE ONE-YEAR RETENTION MEASURE NOT BEING CONSISTENTLY MONITORED AND WHAT DO THE ACTUAL
RETENTION RESULTS LOOK LIKE TODAY? >> SURE THING.
SO WE HAVE TO GET THROUGH A FEW METRICS BEFORE WE GET TO RETENTION, AS YOU CAN IMAGINE.
FIRST, WE'RE FOCUSED ON TRAINING COMPLETION, THEN GETTING SOMEONE INTO A QUALITY JOB.
THEN THEY HAVE TO RETAIN THAT FOR A FULL YEAR. SO IT TOOK TIME TO GET TO BE ABLE TO MEASURE THAT. WE WERE MEASURING IT INTERNALLY. FOR CONTEXT, OUR GOAL IS 80% AS A PROGRAM. WE'RE AT 85%. AS OF JULY, ONCE THE AUDITORS BROUGHT THIS TO OUR ATTENTION, WE STARTED INCLUDING IT IN THE ADVISORY BOARD PRESENTATION SO THEY'RE AWARE, AS WELL AS MONTHLY MEETINGS WITH EACH INDIVIDUAL PRIME PARTNER SO THEY
CAN SEE THEIR STATUS. WE'LL DO THAT MOVING FORWARD. >> PERFECT, THANK YOU.
THE PARTICIPANTS WHO COMPLETED TRAINING, WHAT PERCENTAGE OBTAINED A QUALITY JOB? I THINK YOU MENTIONED 85% PLACED. WHAT PERCENT REMAINS EMPLOYEED AFTER 6 MONTHS, 12 MONTHS? ARE WE DOING A TIMEFRAMED SCALE OF THIS EMPLOYMENT? IS IT CONSISTENT EMPLOYMENT AMONGST AN EMPLOYER? HOW DO WE TRACK THAT?
>> SURE. AS FOR FOLKS WHO COMPLETE TRAINING AND GET A QUALITY JOB, YES, THAT'S SOMETHING WE MEASURE. WE HAVE A METRIC FOR US TO MEET INTERNALLY. AND RIGHT NOW, WE HAVE 63% OF ALL OF OUR PARTICIPANTS PLACED IN JOBS IN 6 MONTHS AND 73% ARE PLACED WITHIN 12 MONTHS. OF COURSE, WE WANT TO MAKE SURE THEY'RE TAKEN CARE OF AND RETAINED FOR AT LEAST A YEAR. LIKE I SAID, THE METRIC FOR THAT
IS 80%, AND PROGRAMWIDE, WE'RE AT 85% CURRENTLY. >> THANK YOU.
JUST MY LAST QUESTION, WHICH STOOD OUT. SO THE AUDIT REVIEWED, LET'S SEE, 103 ON-THE-JOB TRAINING AND INCUMBENT WORKING TRAINING PARTICIPANTS.
LOOKS LIKE WE COULDN'T VERIFY 13 WERE FULL-TIME W2 EMPLOYEES EVEN THOUGH THAT'S A REQUIREMENT FOR REIMBURSEMENT. SO DID WE REIMBURSE OR PAY BEFORE WE HAD ANY DOCUMENTATION VERIFYING THAT THAT PARTICIPANT WAS A FULL-TIME W2 EMPLOYEE, AND GOING FORWARD, WILL THAT
VERIFICATION BE REQUIRED? >> YES, THEY WERE REIMBURSED. THAT BEING SAID, WE WENT BACK AND WERE ABLE TO OBTAIN ALL THE DOCUMENTATION WE NEEDED TO VALIDATE THEY WERE, IN FACT, ELIGIBLE. MOVING FORWARD, WE HAVE A NEW SOP IN PLACE TO MAKE SURE STAFF
[01:20:04]
IS GETTING ALL THAT DOCUMENTATION MOVING FORWARD BEFORE WE MAKE ANY FUTURE PAYMENTS. SO ALL WAS CURED AND IT'S IMPLEMENTED.>> THANK YOU SO MUCH. THAT GOES BACK TO MY EARLIER POINTS, MAKING SURE WE'RE
AUDITING AHEAD AND IS THAT SOMETHING WE CAN LOOK INTO? >> WE'LL LOOK INTO THAT IN TERMS OF WHAT WE SET UP. THAT'S WHY WE HAVE OUR COMMUNITY REPRESENTATIVES HERE TO KIND OF SEE HOW WE DO THIS. AND IF WE CALL IT AN AUDIT OR WE CALL IT A KIND OF A PRE-THING, PRE-KIND OF BEST PRACTICES THAT WE PUT IN AND THAT WILL BE A REQUIREMENT OF THE AUDIT.
WE'LL WORK ON THAT. THANK YOU, DANIEL. ANY OTHER COMMENTS? IF NOT, I'VE GOT A MOTION AND A SECOND. ALL THOSE IN FAVOR, SAY AYE.
WE ARE MOVING ONTO THE LAST ITEM. COUNCILWOMAN MESA GONZALEZ -- I HAVE TO SET OUT. PLEASE READ THE CAPTION FOR ITEM 9 AND BUDDY WILL HAVE THE
PRESENTATION >> ITEM 9 IS A BRIEFING AND POSSIBLE ACTION ON THE OFFICE OF
THE CITY AUDITOR PROPOSED FISCAL YEAR 2027 ANNUAL AUDIT PLAN. >> GOOD MORNING, BUDDY VARGAS, I'M THE CITY AUDITOR. I'LL BE PRESENTING THE FISCAL YEAR '27 PLAN.
IT'S REQUIRED BY ORDINANCE TO BE APPROVED HERE AT THE AUDIT COMMITTEE.
ADDITIONALLY TO BE APPROVED AT A COUNCIL MEETING, WHICH IS RIGHT NOW TARGETED FOR OCTOBER THE 29TH. JUST A SUMMARY OF OUR METHODOLOGY, WE HAVE INTERNAL RISK ASSESSMENT THAT WE WORK ON, BUT WE ALSO SOLICIT INPUT FROM THE MAYOR AND COUNCILMEMBERS.
IN ADDITION, WE SOLICIT INFORMATION FROM SENIOR MANAGEMENT.
A NOTE, OUR AUDIT PLAN CAN BE MODIFIED DURING THE YEAR, BUT IT DOES TAKE APPROVAL FROM THIS AUDIT COMMITTEE. PART OF OUR PROCESS IS TO REVIEW AUDITS CURRENTLY ON THE PLAN.
WE TYPICALLY DO IT AT THIS POINT. WE CAN DO IT DURING THE YEAR WHEN THE EVENTS OCCUR, BUT THE ONE INDICATED RIGHT THERE FROM AN ACCOUNTS RECEIVABLE PERSPECTIVE, MY RECOMMENDATION IS TO CANCEL THAT AUDIT. IT'S ON THE '26 PLAN.
OUR BASIS FOR THAT IS WE'RE SEEING OBSERVATIONS IN CURRENT AUDITS.
WE HAVE A FEW AUDITS THAT HAVE ACCOUNT RECEIVABLE OPPORTUNITIES.
SO ALLOCATING RESOURCES TO STANDALONE ACCOUNT RECEIVABLE AUDIT IS NOT PRODUCTIVE BECAUSE WE'RE FINDING.
THAT WILL HAVE ACCOUNTS RECEIVABLE OPPORTUNITIES. MY RECOMMENDATION IS TO CANCEL THAT AUDIT. TOTAL JUST TO SUMMARY, A TOTAL OF 30 AUDITS, THREE CONSULTING PROJECTS. WE DO ALLOCATE HOURS FOR OTHER TASKS.
SO FOR EXAMPLE, THE ONE THAT STANDS OUT THE MOST THAT YOU'RE FAMILIAR WITH IS THE FOLLOWUP WORK, WHICH HAS OURS. THESE ARE ALL ESTIMATES BECAUSE WE DON'T KNOW HOW MANY FINDINGS WILL FOLLOW UP.
THIS IS OUR AUDIT PLAN. I'M NOT GOING TO GO THROUGH EACH ONE OF THE AUDITS.
I JUST WANT TO MAYBE TOUCH BASE ON SOME PRIORITIES. WE'RE CONTINUING TO LOOK AT REVENUE RECOGNITION, AGAIN, BECAUSE OF WHERE WE'RE AT FROM A BUDGET PERSPECTIVE.
AGAIN, OPERATIONS, IN ADDITION COST SAVINGS WERE APPLICABLE. THINGS THAT MAY BE NOT NECESSARILY NEW, BUT MAY BE EMPHASIS THIS YEAR. THREE AUDITS ON THE PLAN HAVE A GRANT COMPONENT. WE'LL PROBABLY BE CONSIDERING GRANTS GOING FORWARD ALSO IN THE NEXT TWO OR THREE YEARS. THE REASON BEING IF FROM A COMPLIANCE PERSPECTIVE, IF GRANTS ARE NOT IN COMPLIANCE, THERE'S A RISK FOR US TO NOT GET REIMBURSED FOR THOSE FUNDS.
AND WHEN THAT OCCURS, THE GENERAL FUND USUALLY HAS TO ABSORB THAT COST.
RIGHT NOW WE'RE ALL AWARE OF OUR RESTRICTIONS WITH THE GENERAL FUND.
AS DISCUSSED EARLIER, THE POLICE OVERTIME AUDIT WAS REQUESTED BY SEVERAL COUNCILMEMBERS.
THAT IS THERE. AND THAT REALLY CONCLUDES MY PRESENTATION, UNLESS ANYBODY WANTS TO DISCUSS ANY PARTICULAR AUDITS ON THIS PLAN. IN YOUR PACKAGE, IT ALSO HAS THE ACTUAL PRESENTATION, WHICH IS THE ACTUAL PLAN. THIS LIST THAT YOU'RE SEEING HERE IS THE PRESENTATION. NOT NECESSARILY THE PLAN THAT WOULD BE POSTED ON OUR WEBSITE.
>> GONZÁLEZ: OKAY, THANK YOU. THANK YOU FOR THE PRESENTATION. CAN I GET A MOTION AND SECOND TO ACCEPT THE AUDIT PLAN SO WE CAN BEGIN DISCUSSION? WE HAVE A MOTION AND A SECOND.
[01:25:03]
DO ANY OF THE MEMBERS HAVE ANY COMMENTS OR QUESTIONS? GO AHEAD.>> BUDDY, THANK YOU FOR THE PRESENTATION. JUST WONDERING ABOUT THE IT AREAS THAT HAVEN'T BEEN AUDITED WITHIN THE LAST SEVEN YEARS, BASED ON YOUR PRESENTATION.
CAN YOU TALK A LITTLE BIT TO THAT? I KNOW THERE ARE SO MANY FACETS
OF IT. BUT HOW DID THOSE NOT -- >> WELL, WE ALSO CONSIDER THE CARRYOVER FROM THE '26 PLAN. SO WE'RE CURRENTLY IN THERE RIGHT NOW FROM A SECURITY PERSPECTIVE FOR FIREWALLS AND ROUTERS. WE ALSO JUST STARTED ANOTHER ONE FROM A SECURITY PERSPECTIVE FOR OTHER DEVICES OTHER THAN FIREWALLS AND ROUTERS.
SO THERE'S AN OVERLAP. SO WE CONSIDER THAT WHEN WE DEVELOPED THIS PLAN.
SO WE ARE IN THERE. THEN WE HAVE ONE MORE THAT'S A VIRTUAL SERVER THAT WE'LL BE STARTING HERE ALSO. SO WE TAKE THAT '26 ROLLOVER IN CONSIDERATION IN THE PLAN.
THOSE ARE ON THE '26 PLAN THAT YOU'LL BE ABLE TO SEE. >> NEXT QUESTION, THOUSAND HOURS FOR SPECIAL PROJECT REQUESTS, WHAT DO THOSE USUALLY, IN GENERAL, INVOLVE?
>> THAT THOUSAND HOURS RESERVE IN CASE THERE'S COUNCILMEMBER AUDIT COMMITTEE CONCERNS TO ADD AN AUDIT. SO THAT'S KIND OF WHAT WE KIND OF RESERVE.
DEPENDING ON THE SIZE OF THE AUDIT, IT COULD BE ONE AUDIT, OR IT COULD BE MAYBE TWO AUDITS AT THE MOST, I WOULD SAY. BUT THOSE ARE RESERVED THERE FOR ANY ADDITIONS AND/OR CHANGES.
SO IF THERE'S SOME REQUEST TO GIVE YOU SOME INSIGHT, THE POLICE OVERTIME WAS REQUESTED LAST YEAR. FROM MY JUDGMENT, IT MADE MORE SENSE TO START IT THIS YEAR.
BUT THAT WOULD HAVE IMPACTED CURRENT AUDITS IF WE DID A THOUSAND-HOUR AUDIT AT OVERTIME RIGHT BEFORE THE PERIOD. SO I TAKE THOSE INTO CONSIDERATION.
>> GONZÁLEZ: ANY MORE QUESTIONS? >> A GENERAL QUESTION.
SO YEAH, ON THESE LISTS OF, WHAT, 36 ITEMS? I SEE SEVERAL THAT ARE LISTED AS NO. I'M ASSUMING IT'S BECAUSE OF BUDGET OR RESOURCE CONSTRAINTS?
OR WHAT'S THE REASON? >> OH, THE "NO" IN THAT COLUMN INDICATES THAT AN AUDIT HAS NOT BEEN CONDUCTED IN THE PAST SEVEN YEARS. IS THAT WHAT YOU'RE REFERRING
TO? >> YEAH, IS THERE A SPECIFIC REASON WHY, OR...
>> OH, THAT IT HASN'T BEEN WITHIN SEVEN YEARS? >> CORRECT.
>> IT'S JUST A RESOURCE ALLOCATION. YOU'LL SEE FOR THE MAJORITY OF OUR AUDITS, I KNOW IT'S BEEN MENTIONED WE HAVE CYCLED AUDITS, LET'S SAY THREE TO FIVE YEARS, RIGHT? SO FOR CONTEXT, WE COULD BE IN THE POLICE DEPARTMENT, WE CAN DO 30 AUDITS IN THE POLICE DEPARTMENT. BUT WE HAVE TO BALANCE FROM THE
CITYWIDE. >> YEAH, I GUESS JUST MY CONCERN IS ADEQUATE STAFFING FOR THE AUDIT DEPARTMENT, RIGHT? EVERY SINGLE AUDIT THAT WE'VE GONE THROUGH, THERE'S BEEN FINDINGS, WHETHER NEGATIVE OR POSITIVE. SO IT'S CONCERNING THAT A LOT OF THESE DEPARTMENTS HAVEN'T BEEN AUDITED IN THE LAST SEVEN YEARS, RIGHT?
ESPECIALLY THE -- >> I DO WANT TO CLARIFY THAT THESE ARE NOT DEPARTMENTS WHEN
> SO THE AUDIT AREAS, YEAH, Select to skip to this part of the video">IT'S A "NO". IT'S THE ACTUAL SUBJECT MATTER. >> SO THE AUDIT AREAS, YEAH, IT'S STILL CONCERNING, RIGHT? IF COUNCIL WANTS FULL VISIBILITY OF WHAT MIGHT BE HAPPENING, THAT'S REALLY DIFFICULT TO DO IF WE'RE NOT TAKING A PEEK INTO WHAT'S HAPPENING, SO...
>> GONZÁLEZ: (AWAY FROM MIC) IN RENEWAL FUND. ARE THERE AN OPPORTUNITY THERE?
DOES THAT FIT WITHIN AN EXISTING PLANNED AUDIT? >> SOS NUMBER 5 AND 6, IS THAT WHAT YOU'RE REFERRING TO, NUMBER 6? FLEET VEHICLE REPLACEMENT?
>> YEAH, CAN -- >> SO NUMBER 6? >> IS THAT THE VEHICLE
REPLACEMENT AND RENEWAL FUND? >> THIS IS JUST OPERATIONAL IN TERMS OF VEHICLE REPLACEMENT, PERIOD. IN TERMS OF CITYWIDE VEHICLE REPLACEMENT.
SO IT MAY INCORPORATE THAT FUND. BUT RIGHT NOW, WE'RE LOOKING FROM AN OPERATIONAL PERSPECTIVE.
>> I GUESS I THINK THAT TIES INTO THE OPERATIONS. >> YES.
>> BECAUSE WE'RE USING THOSE FUNDS TO PURCHASE OTHER VEHICLES.
>> YES. AND WE'LL PROBABLY INCLUDE THAT IN OUR SCOPE IF IT'S APPLICABLE.
[01:30:01]
>> OKAY, CAN YOU CONFIRM THAT? >> YES. >> (AWAY FROM MIC).
>> YES. OKAY. I THINK THAT'S IT.
SO THERE BEING NO FURTHER DISCUSSION, WE HAVE A MOTION AND SECOND TO ACCEPT THE AUDIT PLAN.
ALL IN FAVOR, SAY AYE. >> AYE. >> ALL OPPOSED SAY NO.
MOTION CARRIES. SO THAT IS ALL OUR BUSINESS FOR THE DAY.
THE TIME IS 11:35 A.M., AND THIS MEETING IS ADJOURNED. THANK YOU SO MUCH.
* This transcript was compiled from uncorrected Closed Captioning.