Mar 17, 2020 Audit and Accountability Committee on 2020-03-17 10:00 AM

IT'S BEEN MOVED AND SECONDED TO APPROVE THE MINUTES OF FEBRUARY 18TH.

ALL IN FAVOR, SAY AYE.

AND I HOPE ALL OF OUR MEMBERS HAVE HAD AN OPPORTUNITY TO REVIEW THE CONSENT AGENDA.

ANY OPPOSED? HEARING NONE MINUTES HAVE PASSED.

UH, WE HAVE A CONSENT AGENDA,

[CONSENT AGENDA]

I'LL JUST, UH, GO THROUGH IT PRETTY QUICKLY.

ITEM NUMBER TWO IS ON-CALL, ENVIRONMENTAL REMEDIATION.

ITEM NUMBER THREE IS UNDERGROUND STORM DRAINAGE, UH, TELEVISING PROGRAM.

ITEM NUMBER FOUR IS DISTRICT NINE SENIOR CENTER, BY THE WAY, NEAR AND DEAR TO MY HEART.

ITEM NUMBER FIVE AS POSTS SOLICITATION, FINANCIAL CONSULTING SERVICES.

ITEM NUMBER SIX, PUBLIC SAFETY NOTIFICATION SYSTEM.

ITEM NUMBER SEVEN IS TEXAS CERTIFIED LEAD ABATEMENT CONTRACTOR SERVICES.

SO THESE ITEMS, UH, HAVE BEEN AVAILABLE FOR MEMBERS TO LOOK AT.

I WOULD, UH, ASK ARE THERE ANY OF THESE ITEMS ON THE CONSENT AGENDA THAT ANYONE WOULD LIKE TO HAVE PULLED? OH, ALSO THERE ARE TWO OTHER ITEMS. ITEMS EIGHT AND NINE ARE FINANCIAL AUDIT REPORTS.

SO LET ME MENTION THOSE.

ITEM NUMBER EIGHT IS AN AUDIT OF THE ATTORNEY, A CITY ATTORNEY'S OFFICE OF DANGEROUS ASSESSMENT RESPONSES.

AND, UH, ITEM NUMBER NINE IS AUDIT OF PARKS AND RECREATION MUNICIPAL GOLF ASSOCIATION.

SO NOW WITH THOSE EIGHT ITEMS MENTIONED TWO THROUGH NINE, ARE THERE ANY ITEMS ANY COMMITTEE MEMBER WOULD LIKE TO HAVE PULLED FOR INDIVIDUAL CONSIDERATION? OKAY.

HEARING NONE, A MOTION IS IN ORDER TO APPROVE THE CONSENT AGENDA.

ITEMS TWO THROUGH NINE.

OKAY, I HEAR A MOTION, SECOND MOTION, AND A SECOND TO APPROVE ITEMS TWO THROUGH NINE ON THE CONSENT AGENDA.

ANY OPPOSED? OKAY.

HEARING NONE ITEMS ARE APPROVED.

WHICH IS THE RESULTS OF THE FISCAL YEAR 2019, EXTERNAL FINANCIAL AUDIT AND PRESENTATION OF RELATED REPORTS.

NOW WE HAVE ITEMS FOR INDIVIDUAL CONSIDERATIONS.

WE'LL TAKE UP ITEM 10,

[10. 20-2453 Results of the FY 2019 External Financial Audit and Presentation of Related Reports [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]]

GOOD MORNING CHAIRMAN COMMITTEE MEMBERS.

MY NAME IS MELANIE KEATON.

I'M THE ASSISTANT FINANCE DIRECTOR.

UH, THIS IS THE RESULTS OF THE EXTERNAL 2019 EXTERNAL FINANCIAL AUDIT.

THIS AUDIT IS REQUIRED UNDER THE PROVISIONS OF THE CITY CHARTER ISSUES, ISSUES WE ISSUE AS SOON AS PRACTICAL PRACTICABLE AFTER THE CLOSE OF EACH FISCAL YEAR.

AN INDEPENDENT EXTERNAL AUDIT IS MADE OF ALL ACCOUNTS BY A C P A, AN INDEPENDENT AUDIT, C P A, WITH NO PERSONAL INTEREST IN THE FINANCIAL AFFAIRS OF THE CITY GOVERNMENT, OR ANY OF ITS OFFICERS.

THIS EXTERNAL AUDIT ENSURES THAT THE CITY'S RECORDS ARE PROPERLY MAINTAINED, FREE FROM MATERIAL MISSTATEMENT, AND COMPLY WITH ESTABLISHED CONCEPTS, PRINCIPLES, AND ACCOUNTING STANDARDS.

THIS IS REQUIRED BY STATE STATUTE AND IT PROVIDES A TRUE AND FAIR VIEW OF THE FINANCIAL POSITION OF THE CITY.

THIS IS OUR THIRD YEAR OF THE CONTRACT WITH GRANT THORNTON, L L P, OUR PRIME.

THERE ARE TWO SEPARATE ONE YEAR EXTENSIONS.

THIS PRESENTATION IS AN OVERVIEW OF THE PLAN SCOPE.

[00:05:01]

I'M SORRY, EARLIER WE PRESENTED IN THE YEAR ON SEPTEMBER 17TH, 2019, AND OVERVIEW OF THE PLAN, SCOPE AND TIMING OF THE AUDIT.

THIS IS THE FOLLOW-UP OF THAT AND THE RESULTS OF THOSE AUDITS.

WITH THAT, I WOULD LIKE TO, UH, GO AHEAD AND PRESENT ANGELA DUNLAP.

SHE IS THE PARTNER WITH GRANT THORNTON AND SHE WILL COME UP FOR PRESENTATION.

AND THIS NEXT SLIDE HERE IS THE RESULTS AND WHAT THOSE DOCUMENTS THAT WERE ISSUED BY GRANT THORNTON AND THE WEBSITE LINK, THE CAFFER WILL BE UP, UM, ACTUALLY MOMENTARILY ON THIS LINK FOR EVERYONE TO BE ABLE TO VIEW.

WITH THAT, I'D LIKE TO INTRODUCE ANGELA AND I WILL COME BACK AND CIRCLE BACK WITH A CLOSURE AFTER SHE'S DONE.

GOOD MORNING EVERYONE.

AS MELANIE STATED, I'M ANGELA DUNLAP, THE AUDIT PARTNER FOR THE CITY OF SAN ANTONIO AUDIT, AND I WANTED TO SHARE WITH YOU, UH, OUR AUDIT, PRESENTATION AND COMMUNICATION RELATIVE TO THE AUDIT SCOPE AND RESULTS OF THE AUDIT THIS YEAR.

UM, AND IF THERE ARE ANY QUESTIONS AS I GO THROUGH THIS, PLEASE FEEL FREE TO JUMP IN AT ANY POINT IN TIME.

SO IF YOU RECALL BACK IN SEPTEMBER, WE OUTLINED FOR YOU THE AREAS THAT WE WOULD BE FOCUSING ON.

AND THESE NEXT TWO SLIDES BASICALLY OUTLINED THE AREAS THAT WE TESTED SPECIFICALLY AROUND, UH, REVENUES, OUR COMPLIANCE WITH, UH, YOUR STATE AND FEDERAL FUNDING.

AND ON THIS FIRST SLIDE, YOU CAN SEE THAT THERE WERE NO EXCEPTIONS NOTED WITH RESPECT TO THE REVENUE TESTING.

AND THEN WE HAD ONE FINDING NOTED, UH, WITH RESPECT TO THE COMPLIANCE AUDIT THAT I WILL GO INTO IN A LITTLE BIT MORE DETAIL.

AND THEN THE NEXT SLIDE ARE THE OTHER AREAS OF FOCUS, UH, THAT WE LOOKED AT.

CAPITAL ASSETS, EMPLOYEE COMP, DEBT, THE NET PENSION, AND OPE LIABILITIES, ANY ACCOUNTING ESTIMATES.

THERE WERE A COUPLE OF NEW, UH, ACCOUNTING STANDARDS THAT WERE ISSUED THIS YEAR.

AND SO WE LOOKED AT THE IMPLEMENTATION OF THOSE NEW ACCOUNTING STANDARDS AND THEY ARE REFLECTED IN THE FINANCIAL STATEMENTS.

AND THEN WE LOOK AT THE DISCLOSURES AND, UM, SOME COMPUTER DATA ACQUISITION ANALYSIS.

AND AGAIN, WITH RESPECT TO ALL OF THOSE AREAS, WE DID NOT IDENTIFY ANY EXCEPTIONS OR FINDINGS.

SO ULTIMATELY, THE RESULTS OF THE FINANCIAL STATEMENT AUDIT, WE ARE, UH, UH, ISSUING UNMODIFIED CLEAN OPINIONS, UM, ON THE FINANCIAL STATEMENTS OF THE CITY OF SAN ANTONIO.

WE DIDN'T HAVE ANY SCOPE LIMITATIONS, MEANING THAT WE WERE ABLE TO TALK TO WHO WE NEEDED TO TALK TO AND LOOK AT ANY DOCUMENTS THAT WE NEEDED TO LOOK AT IN ORDER FOR US TO BE ABLE TO RENDER OUR OPINION.

WE ALSO DIDN'T HAVE ANY UNRESOLVED AUDIT ISSUES DURING THE COURSE OF THE AUDIT, UH, ON A WEEKLY BASIS, WE DISCUSSED WITH MANAGEMENT ANY MATTERS THAT COME UP THAT WE MAY IDENTIFY, UH, BUT NOTHING THAT WAS UNRESOLVED.

AND THEN WE ALWAYS CONTINUED TO HAVE OPEN AND EFFECTIVE COMMUNICATION, UH, WITH MANAGEMENT THROUGHOUT THE ENTIRE PROCESS, NOT JUST DURING THE AUDIT TIMEFRAME, BUT ALSO DURING THE YEAR, THROUGHOUT THE YEAR IF THINGS COME UP.

UH, WE TALK ABOUT THOSE MATTERS AT THAT TIME.

SO, AS I MENTIONED, WE DID, UM, PERFORM AUDIT PROCEDURES ON THE FEDERAL AND STATE AWARDS THAT THE CITY RECEIVES THIS YEAR.

WE AUDITED TWO FEDERAL PROGRAMS AND FOUR STATE PROGRAMS. AND THEN WE ALSO PERFORMED PROCEDURES ON THE PAS PASSENGER FACILITY CHARGE, UH, PROGRAM.

SO THERE WAS ONE SINGLE AUDIT FINDING RELATED TO THE STATE PROGRAMMING, UM, ASSOCIATED WITH CONFISCATED PROPERTIES.

UM, THERE'S A PROVISION WITH RESPECT TO, UM, REPORTING, UH, OR DEPOSITING THE FUNDS THAT ARE SEIZED WITHIN 15 DAYS, UH, PER THE INTERLOCAL AGREEMENT.

AND THERE WERE SOME INSTANCES WHERE THAT WAS DONE.

UH, MANAGEMENT AND THE, UH, PROGRAM STAFF, UH, ACKNOWLEDGE THAT AND WE'LL BE MAKING SOME REVISIONS TO THE INTERLOCAL AGREEMENT, UH, IN THE FUTURE, UH, WHEN THAT COMES BACK UP FOR RENEWAL.

BUT, UM, THAT WAS JUST IDENTIFIED AS A NON-COMPLIANCE AND CONTROL DEFICIENCY.

UH, SO NOTHING OF, UM, OVERCONCERN WITH RESPECT TO THAT PARTICULAR FINDING.

IN REGARDS TO STATUS OF PRIOR YEAR FINDINGS, UH, THERE WERE A COUPLE THAT WE HAD REPORTED ON LAST YEAR.

THOSE, UM, ALL HAD BEEN CORRECTED, UH, IN THE CURRENT YEAR, AND WE HAD NO ISSUES WITH RESPECT TO THAT.

SO WITH RESPECT TO THE RESULTS OF THE FEDERAL AND STATE AUDIT, UH, FROM A FEDERAL PROGRAM STANDPOINT, WE DO ISSUE, UM, TWO REPORTS ON ONE ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND THEN ON COMPLIANCE.

AND WE HAD, UH, UNMODIFIED OPINIONS ON COMPLIANCE FOR BOTH THE FEDERAL AND STATE PROGRAM AS WELL AS THE PASSENGER FACILITY CHARGE PROGRAM.

AND THEN THE LAST TWO SLIDES, UM, REALLY ARE JUST OUR OTHER REQUIRED COMMUNICATIONS MATTERS THAT WE'VE ACTUALLY COMMUNICATED TO YOU GUYS IN THE PAST.

UM, THERE WERE NO GOING CONCERN ITEMS IDENTIFIED.

WE DID NOT, UH, IDENTIFY ANY FRAUD OR NON-COMPLIANCE WITH, UH, LAWS AND REGS, EXCEPT AS NOTED FOR THE STATE CONFISCATED PROPERTY

[00:10:01]

PROGRAM.

UM, NO SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES IDENTIFIED.

WE DO USE, UM, OF COURSE, OTHER AUDITORS.

WE HAVE FOUR, UH, SUBCONTRACTING FIRMS THAT WE WORK WITH TO HELP US COMPLETE THE AUDIT.

UM, AND THEN INTERNAL AUDIT WAS NOT USED SPECIFICALLY, UH, IN TERMS OF, UH, PROCEDURES PERFORMED, BUT WE DO, UH, SPEAK WITH INTERNAL AUDIT AND UNDERSTAND KIND OF THE PROGRAMS AND, UH, AUDITS THAT THEY HAVE PERFORMED AND, UM, MAYBE MODIFY OUR PROCEDURES ACCORDINGLY.

UH, WE DID NOT NOTE ANY, UM, RELATED PARTIES OR RELATED PARTY TRANSACTIONS THAT WEREN'T IN THE NORMAL COURSE OF BUSINESS THAT THE CITY OPERATES IN.

THERE WERE NO DISAGREEMENTS WITH MANAGEMENT, NO CONSULTATIONS THAT WE'RE AWARE OF, UH, NO SIGNIFICANT ISSUES DISCUSSED OR DIFFICULTIES ENCOUNTERED.

UM, THERE WAS NO MODIFICATIONS TO OUR AUDIT REPORTS.

AND THEN WITH RESPECT TO OTHER INFORMATION, UM, INCLUDED IN OTHER INFORMATION AND DOCUMENTS CONTAINING THE AUDITED FINANCIAL STATEMENTS EXCEPT FOR THE, UH, DEBT ISSUANCES THAT INCLUDES THE, UM, CER INCLUDED IN THERE.

THAT'S THE ONLY DOCUMENTS THAT WE'RE AWARE OF.

SO ALSO IN THE MATERIALS, UM, IN THE APPENDIX, THERE'S ACTUALLY A LITTLE BIT MORE DETAIL RELATIVE TO EACH OF THOSE AREAS THAT WE LOOKED AT FOR YOUR REFERENCE POINT.

UM, BUT IF THERE ARE, ARE NO QUESTIONS, I'M GONNA TURN IT BACK OVER TO MELANIE TO ROUND OUT THE COMMUNICATION.

AND WE'RE GONNA GO AHEAD AND MOVE TO SLIDE 32.

SO JUST TO GIVE YOU A LITTLE BIT OF HISTORY ON THE C ITSELF AND THE EXTERNAL AUDIT, UH, BEFORE I KIND OF GO HERE, I DO WANNA TAKE A MOMENT TO THANK, UH, REALLY THE LEADERSHIP AND ASSISTANCE OF BEN GOEL, TROY ELLIOTT IN HELPING WITH THE FINANCIALS.

UM, BUT REALLY ALL THE HARD WORK AND LEGWORK IS DONE BY OUR CONTROLLER AND OUR CONTROLLER'S OFFICE.

AND VICKI RADER IS HERE TODAY.

SHE'S OUR CONTROLLER AND REALLY HELPS PUT THIS THING TOGETHER EVERY YEAR.

SO I WANTED TO THANK HER VERY MUCH FOR THAT.

SO, KIND OF GOING INTO THE HISTORY, AND WE HAVE ABOUT A 13 YEAR VIEW HERE OF THE DAYS TO ISSUE THE CAF R YOU CAN LOOK BACK IN 2006.

IT TOOK US NEARLY A YEAR.

UH, AND WE'VE BASIC, WE'VE CUT IT DOWN TO 143 DAYS.

UM, OUR GOAL IS TO HAVE IT WITHIN 150.

SO WE'VE BEEN WORKING ON THAT GOAL AND CONTINUALLY DWINDLING IT DOWN WITH ABOUT 27 COMPONENT UNITS THAT WE HAVE TO INCLUDE IN OUR CAF R AND WAIT FOR THOSE FINANCIALS.

UM, IT TAKES A LITTLE BIT OF EXTRA TIME TO MAKE SURE WE GET THE FINANCIALS IN AND CONSOLIDATED CORRECTLY.

OUR CAF R FINDINGS, UH, AS YOU CAN SEE THERE TOO, WE'VE MADE SOME DRASTIC IMPROVEMENTS OVER THE YEARS.

UH, WE WERE ECSTATIC TO HAVE NO FINDINGS FOR THE FIRST TIME IN 2018.

AND TO REPEAT THAT IN 2019 IS TREMENDOUS AND REALLY, UH, COMPLIMENT VICKI AND HER TEAM AND REALLY THE, UM, LEADERSHIP THAT SHE'S SHOWN THERE ACROSS THE CITY.

KA FOR ADJUSTMENTS.

THESE ARE ADJUSTMENTS THAT THE AUDITORS PROPOSE, UH, EITHER WE PASS OR, UM, POST THEM.

AND AGAIN, IN THE HISTORY OF REALLY THE 13 YEARS, THIS IS THE FIRST YEAR, THE AUDITORS HAVE HAD NO ADJUSTMENTS TO OUR RECORDS AT ALL.

UM, LAST YEAR WAS, UH, A LITTLE THING ON FIRE AND POLICE PENSION.

SO, UH, TO HAVE THAT IS AGAIN, A TERRIFIC, UH, ASPECT.

GOING INTO THE SINGLE AUDIT FINDINGS.

UM, YOU CAN SEE THE SAME TREND ANGIE HAD MENTIONED THE ONE FINDING THIS YEAR ON THE CONFISCATED PROPERTY.

EACH GRANT ACROSS THE CITY HAS UNIQUE CRITERIA, UM, THAT ARE UP TO THE DEPARTMENTS REALLY TO MANAGE AND MONITOR.

AND WE TRY AND PROVIDE AS MUCH BROAD LEADERSHIP AND CONTROL AS WE CAN, UM, IN WORKING WITH THE DEPARTMENTS AND MAKING SURE THAT ANY FINDINGS THAT WE DO HAVE ARE CORRECTED WITHIN THE NEXT YEAR AND NOT REPEATED.

UM, AND A LOT OF THESE FINDINGS, BOTH ON THE SINGLE AUDIT AS WELL AS THE, UH, CAF R ITSELF HAVE THE REQUIREMENT TO ACTUALLY CREATE A FINDING HAS BECOME MORE STRICT.

UH, THAT ACTUALLY STARTED IN ABOUT 2007.

SO WE'VE BEEN ABLE TO MAINTAIN AND REDUCE, UH, ALMOST PRETTY MUCH ELIMINATE FINDINGS WHILE THE CRITERIA HAS INCREASED, UH, STRENGTHENED IN WHAT WOULD BE A REPORTABLE CONDITION.

SO, UH, AND IN THE MEANTIME OF THAT, WE'VE ALSO IMPLEMENTED 40 DIFFERENT, UH, REGULATORY REQUIREMENTS.

MASSIVE ONES LIKE PENSION AND OPED THAT WE'VE HAD TO RUN THROUGH OUR BOOKS, UH, WITH LITTLE TO NO FINDINGS.

SO, UH, THAT JUST GOES TO REALLY THAT STRENGTH AND CONTROLS THAT WE HAVE OVER, UM, IN, IN THAT CONTROLLER'S GROUP.

MIGHT I JUST ASK, IS, IS IT CORRECT TO PRESUME THAT THE FINDINGS LAST YEAR, THIS YEAR WERE SOMETHING IN A PROCESS THAT WASN'T CARRIED OUT THE WAY WE THOUGHT IT SHOULD BE? AND SO WE'VE CORRECTED THAT PROCESS?

[00:15:01]

CORRECT.

AND ESPECIALLY WHEN IT COMES TO THE SINGLE AUDIT, SOME OF IT IS A TIMING OF RESOURCES.

SO THERE MAY BE SOME SEGREGATION OF DUTIES, UH, A PERSON HAS TO DO ON TWO THINGS, MAYBE PUT IT IN A SYSTEM AND APPROVE IT, TYPE OF, UH, WHICH WE'VE FIXED AND WORKED WITH THE DEPARTMENTS ON.

AND THAT, UH, IS THE COMPLETION OF, UH, THE PRESENTATION.

IF YOU HAVE ANY QUESTIONS FOR EITHER ANGIE OR MYSELF, WE'RE HAPPY TO ANSWER THEM.

IT LOOKS LIKE IT'S A VERY CLEAN PROCESS TO ME, BUT, UH, I'LL OPEN IT UP TO ANY QUESTIONS FROM ANY OF THE COMMITTEE MEMBERS.

THEN I'LL ENTERTAIN A MOTION TO, UH, CHAIR, CHAIR.

CAN I MAKE ONE, JUST QUICK COMMENT? SURE.

UH, ONE, I WANT TO THANK ANGIE, THE ENTIRE AUDIT TEAM.

THERE'S A NUMBER OF SUBS THAT WORK WITH ANGIE'S TEAM AND GRANT THORNTON.

THEY DO A TREMENDOUS JOB OF, OF LOOKING AT OUR AUDIT.

UH, I WANT TO CONGRATULATE TROY.

MELANIE VICKY, THE ENTIRE FINANCE TEAM, OUR DEPARTMENT, FISCAL ADMINISTRATORS, ALL THE FOLKS THAT WORK ON PUTTING OUR FINANCES IN PLACE, OUR INTERNAL CONTROLS.

UM, AS YOU ALL KNOW, WE'RE A BIG ORGANIZATION.

WE'RE COMPLEX.

WE DO A LOT OF DIFFERENT THINGS.

MELANIE TOUCHED ON THE FACT THAT, UM, AS TIME HAS EVOLVED AND ISSUES HAVE COME UP, YOU GET MORE AND MORE REGULATORY STANDARDS ISSUED.

UM, THOSE ARE THINGS THEY HAVE TO IMPLEMENT AND GET THOSE IN PLACE.

THAT'S SOMETHING THAT'S TESTED AND AUDITED.

UH, TREMENDOUSLY PROUD OF THE WORK THAT THEY'VE DONE TO COME UP TWO YEARS IN A ROW IN AN ORGANIZATION OF OUR SIZE WITH NO FINANCIAL AUDITS.

I THINK THAT'S A TREMENDOUS ACCOMPLISHMENT.

REALLY PROUD OF THE TEAM AND THE GREAT WORK THAT THEY DO.

SO I JUST WANTED TO ACKNOWLEDGE THEM AND THANK THEM FOR THEIR WORK.

THANK YOU, BEN.

I'M SURE THAT ACKNOWLEDGEMENTS VERY WORTHWHILE.

SO AT THIS POINT IN TIME, UH, WE, UH, WILL ENTERTAIN A MOTION TO ACCEPT THIS YEAR'S AUDIT.

I HAVE A MOTION TO MY RIGHT.

SECOND AND A SECOND.

IT'S BEEN MOVED AND SECONDED TO ACCEPT THE EXTERNAL AUDIT AS PRESENTED.

ANY OPPOSED? ANY ABSTENTIONS? ABSTAIN? OKAY.

WE HAVE ONE MEMBER ABSTAIN.

WHICH IS BIANNUAL HIGH PROFILE PROCUREMENT REPORT.

THAT CONCLUDES ITEM NUMBER 10.

THANK YOU VERY MUCH.

OKAY, NOW WE'LL MOVE ON TO, EXCUSE ME.

NOW WE'LL MOVE ON TO ITEM NUMBER 11,

[11. 20-2452 Biannual High Profile Procurement Report [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]]

TROY WILL BE DOING THAT FOR US.

YES, SIR.

GOOD MORNING.

THIS ITEM IS OUR SECOND BIANNUAL PRESENTATION OF THE HIGH PROFILE PROJECTS FOR, UM, APRIL THROUGH SEPTEMBER.

UM, JUST A LITTLE BIT OF BACKGROUND AS WELL.

UM, LAST TIME WE PRESENTED THIS WAS IN SEPTEMBER.

UH, WE PRESENTED OUR FIRST FORECAST AND WE ALSO PRESENTED SEVERAL PROCESS CHANGES.

JUST AS A RECAP.

UM, THE PROCESS CHANGES INCLUDED THAT WE WILL BE COMING TO THIS GROUP TWICE A YEAR, AS WELL AS TO THE FULL COUNCIL.

FOR THOSE ITEMS THAT WE, UM, IDENTIFIED OR HAVE SELECTED FOR HIGH PROFILE, UH, B SESSION PRESENTATIONS, WE DID ESTABLISH A NEW CATEGORY FOR THOSE SELECT PRESENTATIONS.

AND I'LL BE GOING OVER KIND OF THOSE GUIDELINES THAT WE ESTABLISHED IN MORE DETAIL IN A MOMENT.

AND THEN, AS YOU'RE VERY FAMILIAR, UM, IN ADDITION TO THE SELECT PRESENTATIONS, WE ALSO COME BACK TO THIS GROUP AND WE PRESENT ON THE AGENDA EITHER AS AN INDIVIDUAL ITEM OR AS CONSENT.

AND I'LL BE GOING THROUGH IN DETAIL, UM, THOSE ITEMS THAT WE ARE RECOMMENDING FOR THE SECOND SIX MONTHS OF THIS FISCAL YEAR.

WE DID HAVE, ON THE FIRST FORECAST, WE HAD 38 HIGH PROFILE PROJECTS.

UM, IN COMPARISON FOR THIS, UH, FORECAST THAT I'LL BE PRESENTING TODAY, WE HAVE 25 HIGH PROFILE, AND I'LL BE SHARING WITH YOU HOW THOSE 25 ARE GONNA BE DIVVIED UP BETWEEN THE B SESSION AND THE AUDIT COMMITTEE.

UM, HIGH PROFILE, AS, AS YOU ALREADY KNOW, IS, UM, DISCRETIONARY CONTRACTS VALUED OVER $1 MILLION.

THEY CAN HAVE A HIGH LEVEL OF COMMUNITY INTEREST OR OTHER EXCEPTIONAL INTEREST.

ARE THERE HIGHLY COMPLEX OR TECHNICAL IN NATURE OR CONTRACT TERMS AND CONDITIONS THAT ARE NON-STANDARD, NON-STANDARD OR COMPLEX.

UM, THESE DO NOT INCLUDE LOW BID ITEMS. THESE ARE PURELY DISCRETIONARY, DISCRETIONARY ITEMS IN NATURE THAT WE CAN HAVE, UM, SOME TYPE OF INFLUENCE OVER.

SO IT DOES NOT INCLUDE LOW BID.

THESE ARE THE GUIDELINES FOR THE SELECT CRITERIA CRITERIA THAT WE, UM, INTRODUCED LAST TIME.

AND WE'LL BE USING TO BASICALLY, UM, DETERMINE WHAT ITEMS WILL BE PRESENTED TO B SESSION FOR THE NEXT SIX MONTHS.

UM, AT A HIGH LEVEL, UM, CONTRACTS OR PROCUREMENTS THAT HAVE A VALUE OVER 25 MILLION HAVE A PUBLIC POLICY OR PUBLIC SAFETY IMPLICATIONS.

A CONTRACT TERM, UM, AROUND 10 YEARS OR MORE HIGH LEVEL OF COMMUNITY OR STAKEHOLDER IMPACT OR INTEREST.

AND THEN KIND OF OVERARCHING IS PROFESSIONAL JUDGMENT FOR THE STAFF, BASICALLY ON WHAT WE HAVE SEEN HISTORICALLY IN THE PAST WHERE WE THINK THINGS THAT MAY BE OF INTEREST TO THE COUNCIL

[00:20:01]

OR THAT HAVE BEEN, UM, THERE HAVE BEEN HIGH INTEREST THERE BY THE COMMUNITY.

SO PROFESSIONAL JUDGMENT IS KIND OF OVERARCHING IN THIS ITEM.

THIS JUST WANTED TO GIVE YOU A RECAP BEFORE MOVING INTO THE FORECAST.

THIS, THESE ARE THE B SESSION ITEMS THAT WERE ESTABLISHED BY COUNSEL.

AND WE HAD RECOMMENDED AS STAFF TO BE PRESENTED IN THE FIRST SIX MONTHS.

UM, AND KIND OF GIVE YOU A STATUS OF WHERE THOSE ARE.

UM, THE METHOD VIOLENCE HAS BEEN COMPLETED FROM A PRO, FROM A PROCUREMENT STANDPOINT.

THE DOCKLESS VEHICLES WAS COMPLETED.

ORGANIC MATERIAL PROCESSING SERVICES THAT WILL ACTUALLY, I BELIEVE IT'S ON THE AGENDA FOR TOMORROW FOR DAVID NEWMAN TO PRESENT THE RESULTS IN A POST SOLICIT POSTS SOLICITATION PRESENTATION, THE 21 AND 22 CONSOLIDATED FUNDING.

WE HAVE, UM, STAFF HAS PROVIDE A PRES SOLICITATION BRIEFING.

THAT ONE IS IN PROGRESS AND PENDING THE ISSUANCE OF THE ACTUAL SOLICITATION TERMINAL B FOOD BEVERAGE CONCESSIONS WITH AVIATION AND HEMISPHERE CS PARK, THOSE ITEMS, UM, DID NOT COME TO BE SESSION.

AND WE'LL BE PUSHING THOSE TO THE NEXT SIX MONTHS IN DEVELOPING THE FORECAST.

WE WORK WITH EVERY CITY DEPARTMENT, EVERY DEPARTMENT HEAD, THE EXECUTIVE LEADERSHIP TEAM IN OUR ECONOMIC DEVELOPMENT DEPARTMENT TO ACTUALLY, UH, DEVELOP THIS FORECAST.

AS I MENTIONED, THERE ARE 25 HIGH PROFILE PROJECTS IDENTIFIED.

WE WILL BE RECOMMENDING THREE OF THOSE FOR B SESSION.

AND THE REMAINING AMOUNT WILL GO THROUGH THE AUDIT COMMITTEE.

22 OF WHICH WILL SIX, WE ARE RECOMMENDING AS INDIVIDUAL AND 16 AS CONSENT AGENDA.

AND I'LL SHARE THOSE WITH YOU HERE IN A, IN A FEW MINUTES FOR B SESSION PRESENTATION.

AND UM, THE FIRST ONE IS THE, IS AN AVIATION PROJECT.

THIS IS DIFFERENT FROM THE ONE IN THE FIRST SIX MONTHS.

UM, THESE ARE ACTUALLY, UH, TERMINAL A AND B TRAVEL RETAIL PRIME CONCESSIONAIRE.

SO THIS IS A PRIME CONCESSIONAIRE TO PROVIDE TRAVEL RETAIL IN SIX LOCATIONS WITHIN TERMINALS A AND B.

UH, IT'S ABOUT A NINE YEAR CONTRACT TO ALIGN IT WITH OTHER, UM, INITIATIVES AT THE AIRPORT WITH AN ESTIMATED VALUE ABOUT $16.8 MILLION.

THIS ONE WAS SELECTED 'CAUSE WE BELIEVE BASED ON PAST EXPERIENCE WITH, UH, CONCESSION CONTRACTS, THIS WOULD BE SOMETHING THAT WE'D RECOMMEND FOR A B SESSION PRESENTATION.

THE HOMELESS STRATEGIC PLAN FUNDING.

ALTHOUGH WHEN YOU LOOK AT THE ESTIMATED VALUE, IT IS LOW.

WE BELIEVE THIS IS SOMETHING THE COUNCIL HAS A HIGH POLICY INTEREST IN.

SO WE'LL BE RECOMMENDING THIS ONE FOR B SESSION AS WELL.

AND THE STRATEGIC PLAN, OF COURSE, IS TO, IT'S A SOLICITATION TO FUND AGENCIES TO ADDRESS IDENTIFIED GAPS IN THE HOMELESS SYSTEM.

AND I APOLOGIZE, THIS BOTTOM ONE ON THE HEMISPHERE CIVIC PARK IS A RE IS A REPEAT FROM THE PRIOR SLIDE.

UM, SO THOSE ITEMS THAT WERE PENDING ON THE PRIOR SLIDE WILL ALSO ROLL OVER INTO THE SECOND SIX MONTHS.

SO YOU, FOR B SESSION PRESENTATION, UH, TECHNICALLY YOU WILL HAVE TWO ADDITIONAL, UM, HIGH PROFILE PROJECTS THAT WOULD BE SELECTED FOR B SESSION PRESENTATION.

THESE NEXT TWO SLIDES ARE GOING TO BE THE ITEMS THAT WE ARE RECOMMENDING FOR INDIVIDUAL BRIEFINGS TO THE AUDIT AND ACCOUNTABILITY COMMITTEE.

UM, WE SPLIT IT UP ON TWO SLIDES JUST SO THAT YOU CAN ACTUALLY MAKE OUT THE, THE, UM, THE FONTS ON IT AND THE SIZE OF IT.

BUT THE FIRST ONE, THERE ARE TWO FOR C C D O.

IT IS THE EVA STREET MARINA REDEVELOPMENT OF THE PROPERTY AT THE SOUTHEAST CORNER OF NUEVA STREET AND ABOVE THE MARINA.

UM, IT'S A ONE TIME PROJECT AND IT IS A REVENUE CONTRACT FOR THE PRICE OF THE PROPERTY TO BE, UM, TO BE SOLD.

THESE ZAMAR PROPERTY, UH, PROPOSALS FOR THE PURCHASE AND REDEVELOPMENT OF THE PROPERTY OF THE NORTHWEST CORNER OF CS AMERICA CENTENNIAL.

UM, IN COUNCIL DISTRICT FIVE $5.1 MILLION, UH, ESTIMATED IN REVENUE.

WE HAVE A CISA FOR THE ADVERTISING AND SPONSORSHIP PROGRAM AT THE ALMO DOME.

SO THIS WILL BE A PROGRAM FOR COMMERCIAL MARKETING RIGHTS AND BUSINESS OPPORTUNITIES AT THE ALMO DOME.

IT'S A TWO YEAR CONTRACT WITH ONE YEAR OPTION, ROUGHLY BY $7 MILLION IN REVENUE.

THE REMAINING THREE ONE IS FOR INNOVATION.

AND AGAIN, WHEN YOU LOOK AT IT, UM, IS A SMALL DOLLAR VALUE.

500,000.

UM, TYPICALLY DOES NOT MEET THE DEFINITION OF A HIGH PROFILE PROJECT AT THE MILLION DOLLAR LEVEL, BUT WE THINK THAT THERE IS, UM, A HIGH LEVEL OF INTEREST HERE.

SO THIS IS THE AUTONOMOUS VEHICLE PILOT AT THE BROOKS INNOVATION ZONE AND BE SOLICITING FOR TWO AUTONOMOUS SHUTTLES TO CONNECT VISITORS, RESIDENTS FROM THE BROOKS VIA TRANSIT CENTER TO THE RESPECTIVE DESTINATIONS.

THE SECOND ONE IS THE OFFICE OF RISK MANAGEMENT.

THIS IS A THIRD PARTY, UM, ADMINISTRATOR, ADMINISTRATOR SELECTING AN ADMINISTRATOR FOR WORKERS' COMPENSATION CLAIMS FOR THE CITY'S WORKERS' COMPENSATION PROJECT.

IT'S A THREE YEAR CONTRACT WITH TWO ONE YEAR RENEWALS, ABOUT 5.5 TO $6 MILLION IN, UM, COST.

AND THE LAST ONE IS WITH PUBLIC WORKS.

IT'S GONNA BE THE NORTH MAIN AVENUE AND SOAD STREET PECAN STREET TO TOMORROW STREET RECONSTRUCTION OF THAT AREA, ROUGHLY ABOUT $9 MILLION.

THE NEXT SLIDE, UM, THESE ARE GONNA BE THE CONSENT ITEMS THAT, THAT

[00:25:01]

WE ARE RECOMMENDING.

ALTHOUGH THEY MEET THE MILLION DOLLAR THRESHOLD OR DEFINITION FOR A HIGH PROFILE PROJECT, THEY'RE FAIRLY ROUTINE IN NATURE.

AND SO THEY BASICALLY MEET THE DEFINITION 'CAUSE THEY'RE A MILLION OR MORE.

BUT BECAUSE OF THE ROUTINE NATURE, WE ARE RECOMMENDING THEM FOR AS A CONSENT ITEM.

I WON'T GO THROUGH ALL OF THEM, BUT THERE ARE SEVEN, UM, DEPARTMENTS WITH, UM, RECOMMENDED SOLICITATIONS THAT WILL BE ON THE END OF, ON THE CONSENT AGENDA FOR, UM, COUNCIL, UM, WITH AVIATION C C D O C C E, UM, ITEM PUBLIC WORKS.

AND I'LL LET Y'ALL READ THROUGH THOSE, BUT I WON'T GO THROUGH EACH OF THOSE INDIVIDUALLY.

TROY, IF I MAY INTERJECT.

UH, I THINK IT'S FOR THE BENEFIT OF THE PUBLIC AND, AND TO REMIND ALL OUR COMMITTEE MEMBERS, EVERY ITEM THAT'S BROUGHT FORWARD TO THIS COMMITTEE IS DONE.

SO IN A FASHION THAT EVERY MEMBER HAS AN OPPORTUNITY TO LOOK AT ALL OF THE DETAILS RELATED TO EACH OF THESE ITEMS AND TO MAKE IT THEIR OWN DETERMINATION AS TO WHETHER OR NOT THEY SHOULD BE BROUGHT UP FOR INDIVIDUAL CONSIDERATION.

AND WHAT THE COMMITTEE ALWAYS ASKS IS THAT MEMBERS LOOK AT THE, LOOK AT THESE AS THEY'RE PRESENTED EARLY ON, AND ASK ANY QUESTIONS THAT WE MAY HAVE OF, UH, THE DIFFERENT DEPARTMENTS AND THE ADMINISTRATORS THAT ARE OVERSEEING THESE REQUESTS.

AND A LOT OF TIMES WE FIND WE GET THESE QUESTIONS ANSWERED, WHICH MAKES IT A PRETTY SIMPLE PROCESS TO BRING 'EM FORWARD AS CONSENT ITEMS. ABSOLUTELY.

AND WITH THAT COUNTS, UM, CHAIRMAN, THAT ENDS MY PRESENTATION AND OUR RECOMMENDATIONS FOR THE B SESSION, UM, ITEMS AS WELL AS THE AUDIT COMMITTEE, AUDIT AND COMMITTEE AUDIT AND ACCOUNTABILITY COMMITTEE ITEMS AS AN INDIVIDUAL OR CONSENT, WE'RE HA WE HAVE STAFF HERE AND DEPARTMENTS, DEPARTMENTS TO ANSWER ANY, UH, SPECIFIC QUESTIONS Y'ALL MAY HAVE ON ANY OF THESE, UH, SPECIFIC ITEMS. UM, ONE QUESTION THAT COMES TO MY MIND IS THAT THERE WERE A COUPLE OF, UH, OPPORTUNITIES, UH, REGARDING, UH, THE CONCESSION CONTRACTS AT THE AIRPORT.

I THINK WE ALSO HAD SOMETHING, UH, RELATED TO, UM, RELATED TO THE ALAMODOME MARKETING RIGHTS AND THINGS OF THIS NATURE IN LIGHT OF THE CURRENT CONDITIONS WE ARE IN TODAY AND HOW THEY MAY AFFECT, UH, THE MONETARY RETURNS TO THE COMPANIES THAT PROVIDE THESE KINDS OF SERVICES.

UM, DO YOU ANTICIPATE THAT THESE ARE GOING TO GO THROUGH AS YOU HAVE LAID THEM OUT NOW, OR COULD THERE BE SOME KIND OF DELAYS, UH, RECONSIDERATION OF SOME OF THESE? I THINK IT'S A LITTLE EARLY TO TELL.

I MEAN, I THINK OUR, OUR INTENTION IS TO MOVE FORWARD WITH THE SOLICITATIONS AS WE GET THROUGH THOSE IN THE EVENT THAT WE EXPERIENCE SOME AND WE ACTUALLY COMMUNICATE WITH THE VENDORS OR THE RESPONDENTS WHO ARE, ARE GONNA BE RESPONDING.

IF THERE'S A NEED FOR A DELAY, WE'LL TALK TO THE, THE RESPONDENTS IN AND WE'LL DETERMINE AT THAT TIME.

I THINK IT'S A LITTLE EARLY TOO, TOO EARLY FOR US TO TELL RIGHT NOW.

ANY OTHER COMMITTEE MEMBERS HAVE ANY QUESTIONS? OKAY, HEARING NONE.

UM, THEN THIS WAS JUST A BRIEFING, LETTING US KNOW WHAT SCHEDULE DO WE NEED TO GO AHEAD AND, UH, APPROVE THIS LIST.

UH, CHAIRMAN, THIS, UH, WILL ALSO BE PRESENTED AT B SESSION TO THE FULL COUNCIL RIGHT, UH, TOMORROW.

SO, UH, SO, SO LET'S JUST RECOMMEND IT GO FORWARD TO B SESSION TOMORROW.

UH, I HAVE A MOTION.

AM I RIGHT? IS THERE A SECOND THAT GOES? OKAY.

AND SPEND SECOND.

IT ALL IN FAVOR SAY AYE.

ANY OPPOSED? HEARING NONE.

WE RECOMMEND IT.

GO TO B SESSION TOMORROW.

THANK YOU VERY MUCH.

UH, THE NEXT ITEM WE HAVE UP IS ITEM NUMBER

[12. 20-2455 Temporary Staffing Services [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]]

12.

UH, AND THIS IS A PRES SOLICITATION BRIEFING ON TEMPORARY STAFFING SERVICES.

TROY? YES SIR.

AND THIS IS CHAIR, IF I CAN JUST ON THIS ITEM.

UM, WE DID A PRES SOLICITATION BRIEFING WITH YOU I THINK TWO MONTHS AGO, OR MAYBE TWO MEETINGS AGO.

THIS IS JUST COMING BACK BECAUSE WE'VE GOT, AND TROY'S GONNA GO THROUGH THE DETAILS ON A, THE FEDERAL AND STATE GRANT ISSUE THAT WE'VE GOT, THE FEDERAL CIRCULAR THAT'S IMPACTING HOW WE DO PROCUREMENTS.

IT'S REALLY ON THAT SPECIFIC ISSUE, NOT ON SOME OF THE FOLLOW UP THAT YOU ALL HAVE ASKED FOR.

WE'RE STILL WORKING ON WITH OUR DEPARTMENTS.

I KNOW THAT COUNCILMAN TRAVINO AND OTHERS HAVE ASKED US TO GO LOOK AT HOW WE USE TIMSS, WHERE WE USE TIMSS.

UH, WE'RE GOING THROUGH THAT PROCESS AND WE'RE STILL WORKING ON THAT.

THIS IS GONNA BE ON THAT VERY SPECIFIC ISSUE OF WHETHER WE DO A SINGLE SOLICITATION OR TWO SOLICITATIONS AND WHETHER WE CAN APPLY LOCAL PREFERENCE OR NOT.

SO TROY WILL GO THROUGH THAT.

GO AHEAD TROY.

UM, FUTURE, UH, SOLICITATIONS THAT MEET THIS CRITERIA.

AS BEN MENTIONED, THIS IS REALLY A CONTINUATION OF OUR, UM, DISCUSSIONS IN JANUARY WHEN LORI PRESENTED THE PRES SOLICITATION AS WELL AS MY BRIEF OVERVIEW IN FEBRUARY.

SO HOPEFULLY PROVIDE YOU A LITTLE MORE CONTEXT AND, AND BACK AND DETAILS.

BUT I THINK BEN COVERED A LOT OF THIS ALREADY BY WAY AND BACKGROUND.

UM, WE DID THE PRES SOLICITATION IN JANUARY AFTER THAT POLICE PRES SOLICITATION.

WE DISCOVERED THAT, UM, AS A DISCRETIONARY CONTRACT, AND THIS IS SOMETHING THAT DOESN'T HAPPEN VERY OFTEN.

[00:30:01]

IT'S NOT VERY ROUTINE.

'CAUSE TYPICALLY A DISCRETIONARY CONTRACT IS A CONTRACT THAT USUALLY HAS A SINGLE SCOPE THAT'S ASSOCIATED WITH A SINGLE DEPARTMENT.

THEY USUALLY DON'T SPAN CITYWIDE SERVICES.

AND IT JUST SO HAPPENS TODAY THAT WE HAVE TEMPORARY SERVICES AND THEN WE ALSO HAVE ANOTHER ITEM ON THE AGENDA THAT FOLLOWS DIRECTLY AFTER THIS ONE ON CITYWIDE SECURITY SYSTEMS. SO WE WILL HAVE A SIMILAR ISSUE AND I'LL TALK MORE ABOUT THAT AND CRAIG WILL TALK TO HIM ABOUT THAT WHEN HE GETS UP HERE TO PRESENT THAT ITEM.

BUT WHEN WE WENT THROUGH AND WE IDENTIFIED THE ISSUE THAT, UM, NOT REALLY AN ISSUE, BUT THAT THERE WAS MULTIPLE FUNDING, MEANING FEDERAL AND GENERAL FUND DOLLARS AND OTHER DEPART, OTHER FUND DOLLARS INVOLVED, IT REALLY BRINGS INTO, UM, LIKE THE REQUIREMENTS OF THE OFFICE AND MANAGEMENT BUDGET, SUPER CIRCULAR.

UM, AND WHAT THAT DOES IS IT BASICALLY HAS A RESTRICTION OR RESTRICTS US OR PROHIBITS US FROM USING GEOGRAPHICAL PREFERENCES ON OUR PROCUREMENTS.

WHAT THAT MEANS IS THAT OUR, OUR LOCAL PREFERENCE PROGRAM IS A GEOGRAPHICAL PREFERENCE.

SO IT, IT, UM, CREATES SOME CHALLENGES FOR US IN HOW WE DO OUR PROCUREMENTS AND WE'RE HERE TO DISCUSS THOSE OPTIONS WITH YOU TODAY.

AS I MENTIONED, UH, TEMPORARY STAFFING SERVICES WAS IDENTIFIED AS REALLY THE FIRST ANNUAL DISCRETIONARY CONTRACT FOR FEDERAL GRANT FUNDS.

LIMIT THE APPLICATION OF LOCAL PREFERENCE.

UM, AND WE'LL BE RUNNING THROUGH SOME OPTIONS FOR Y'ALL TODAY AS WE MOVE FORWARD.

THE LAST TIME WE MET, I THINK Y'ALL HAD ASKED FOR KIND OF WHAT DOES THE MARKET LOOK LIKE IN TERMS OF LOCAL, NATIONAL AND REGIONAL FIRMS. THIS IS THE LAST, UM, EVALUATION MATRIX THAT WE HAD WHEN WE ACTUALLY DID THE TEMPORARY STAFFING SERVICES, I BELIEVE FIVE YEARS AGO.

SO WHEN YOU'RE LOOKING AT IT, WHEN YOU'RE LOOKING AT IT, THERE WERE FIVE, UM, FIVE RESPONDENTS, ALL FIVE RESPONDENTS.

UM, OF THOSE FIVE FOUR WERE ACTUALLY LOCAL COMPANIES THAT WERE HEADQUARTERED HERE.

AND ONE HAD A SIGNIF SIGNIFICANT BUSINESS PRESENCE OR A HUNDRED MORE EMPLOYEES.

WE ALSO WENT BACK, IN ADDITION TO LOOKING AT WHAT WE HAD RECEIVED ON THE PAST SOLICITATION, WHICH WAS PREDOMINANTLY LOCAL OR A HUNDRED PERCENT PERCENT LOCAL, WE WENT BACK TO OUR CENTRALIZED VENDOR REGISTRY AND LOOKED AT WHAT POPULATION OF, UM, VENDORS HAVE EXPRESSED INTEREST IN THAT CENTRAL VENDOR REGISTRY.

THERE'S ABOUT 43 COMPANIES THAT ARE REGISTERED THAT PRO PROVIDE SOME FORM OR FASHION OF TEMPORARY SERVICES.

AND THE MAJORITY OF THOSE ARE EITHER HEADQUARTERED HERE IN SAN ANTONIO OR THEY HAVE A SIGNIFICANT BUSINESS PRESENCE.

SO AFTER DOING THAT RESEARCH, THE CURRENT MARKET DEMONSTRATES THAT THERE IS BOTH COMPETITION FROM NATIONAL AND LOCAL FIRMS. UM, THE RESEARCH WITH THE NATIONAL FIRMS INDICATE THE CONTRACT WOULD BE THROUGH LOCAL OFFICES HERE, UM, IN SAN ANTONIO.

AND AS I MENTIONED, LOOKING THROUGH THE CENTRAL VENDOR REGISTRY AND THE SOUTH CENTRAL TEXAS REGIONAL CERTIFICATION AGENCY, IT INDICATES THAT THERE IS A LARGE NUMBER OF LOCAL SMALL MINORITY OWNED FIRMS TO PROVIDE THESE SERVICES.

SO A STRONG LOCAL PRESENCE, UM, IS AVAILABLE.

WE LOOKED AT SEVERAL OPTIONS, UM, I THINK I MENTIONED THESE LAST TIME.

BUT THESE ARE THE THREE OPTIONS THAT WE, THAT WE, THAT WE RESEARCHED.

AND, UM, STARTING WITH THE FAR LEFT, THE BLOCK IN RED, ONE OPTION WOULD BE TO ACTUALLY, TO GET AROUND THE REQUIREMENTS OF THE SUPER CIRCULAR WOULD BE TO ISSUE TWO SOLICITATIONS.

ONE WITH LOCAL INCLUDED IN THERE AS A 10 POINT PREFERENCE AND ONE WITHOUT LOCAL INCLUDED.

WITHOUT THE 10 POINT PREFERENCE.

ADMINISTRATIVELY IT'S A LITTLE CHALLENGING, UM, TO ACTUALLY DO TWO, TWO, UM, SOLICITATIONS FOR THE SAME SCOPE BUT DIFFERENT SCORING CRITERIA.

THE SECOND ITEM IN GREEN IN THE MIDDLE WOULD BE TO ISSUE ONE SOLICITATION.

AND WITHIN THAT ONE SOLICITATION WE'D HAVE TWO SET OF EVALUATION CRITERIA.

UM, ONE EVALUATION CRITERIA WOULD BE ON A HUNDRED POINT, UM, SCORING CRITERIA, INCLUDING LOCAL.

AND THE SECOND ONE WOULD BE ON AN 85 POINT 'CAUSE WE WOULD ALSO RECOMMEND NOT INCLUDING VETERAN IN THERE, AN 85 POINT SCORING EVALUATION MATRIX, UM, WITH THE LOCAL AND THE VETERAN REMOVED.

THE LAST, UM, THE LAST RECOMMENDATION OR LAST OPTION THAT WE LOOKED AT IS JUST TO ISSUE ONE SOLICITATION AND NOT COMP, NOT, UM, APPLY THE LOCAL PREFERENCE AT ALL.

AND WE'D ALSO BE CONSISTENT BY NOT PROVIDING VETERANS.

THIS LAST OPTION WOULD BE CONSISTENT WITH WAY, THE WAY WE HANDLE OUR, UM, R F CSPS AND THOSE THAT ARE COVERED BY STATUTE.

SO IT'D BE A CONSISTENT ACROSS THE BOARD.

AND ULTIMATELY THAT'S WHAT WE WILL BE RECOMMENDING IS THAT LAST OPTION.

SO WHEN A COMBINATION OF FEDERAL AND NON-FEDERAL FUNDS ARE UTILIZED AND IT'S A CITYWIDE PROCUREMENT, UM, WE WOULD RECOMMEND ONE SOLICITATION BE ISSUED WITHOUT APPLICATION OF THE CITY'S LOCAL PREFERENCE PROGRAM.

AND AS I MENTIONED, WE WOULD ALSO RECOMMEND NOT INCLUDING VETERAN TO BE CONSISTENT.

UM, WE'D IMPLEMENT THE RECOMMENDED APPROACH HERE FOR TEMPORARY STAFFING SERVICES.

AND THEN ALSO WE WOULD ASK THAT THIS BE A POLICY DECISION THAT WOULD BE KIND OF THE PRECEDENT FOR FUTURE,

[00:35:01]

AND AS I MENTIONED, WE HAVE A SIMILAR ONE FOR, UM, CITYWIDE SECURITY SERVICES THAT WILL FOLLOW THIS.

AND IF THE, IF AS A COMMITTEE YOU WOULD ACCEPT OUR RECOMMENDATION, THEN WE'D ALSO APPLY THAT RECOMMENDATION TO THE CITYWIDE SECURITY SYSTEMS AS WELL.

THAT CONCLUDES MY PRESENTATION AND I'M AVAILABLE FOR ANY QUESTIONS.

LET ME JUST GO BACK TO SLIDE SIX AND WITH A TWO SOLICITATION OPTION, UM, WOULD WE BE ABLE TO, UH, WHEN WE'RE TALKING ABOUT THE SECOND OPTION OF NOT APPLIED FOR FEDERALLY FUNDED REQUIREMENTS, BE ABLE TO THEN INCLUDE LOCAL PREFERENCE AND VETERANS PREFERENCE, UH, AND SMALL BUSINESS PREFERENCE IN THAT PARTICULAR OPTION.

IF WE HAD TWO THAT WE WERE GONNA GO WITH, IF YOU HAD TWO DIFFERENT SOLICITATIONS, YOU WOULD HAVE ONE SOLICITATION THAT INCLUDED LOCAL PREFERENCE AND VETERANS AND SMALL BUSINESS MM-HMM.

, YOU'D HAVE A SEPARATE SOLICITATION THAT WOULD NOT INCLUDE THE LOCAL PREFERENCE POINTS WOULD NOT INCLUDE THE VETERANS, IT WOULD HAVE SATED INCLUDED IN IT.

THAT SEDATED WOULD HAVE TO, BASED ON OUR CONSULTATION WITH THE SMALL BUSINESS OFFICE, THAT SAB BETA PERCENTAGE WOULD HAVE TO BE REALLOCATED SOMEWHAT.

'CAUSE IT'S REQUIRED TO BE IN, UM, IN, IN, UM, IN PROPORTION TO THE OVERALL SCORING THAT THE, UM, GOAL SETTING COMMITTEE ACTUALLY ESTABLISHED.

SO IT MAY BE 10 POINTS IN THE, UM, SOLICITATION WITH LOCAL PREFERENCE INCLUDED.

IF WE WENT TO A DIFFERENT SCORING, UM, LIKE AN 85 POINTS IN THE SECOND PRESENTATION, THEN WE'D HAVE TO DO THAT IN ALLOCATION OR IN PROPORTION TO THE SCORING.

BUT THAT WOULD ENABLE US TO GO AHEAD AND GIVE POINTS TO VETERANS AND LOCAL PREFERENCE FOR LOCALLY FUNDED TYPES OF POSITIONS WE WERE TRYING TO FILL.

AND THE OTHER, WHICH WOULD EXCLUDE LOCAL PREFERENCE AND VETERANS WOULD ALLOW US TO FILL ANY POSITION, WHETHER IT'S FEDERAL OR OTHERWISE IT, THE FIRST ONE THAT INCLUDES LOCAL MM-HMM.

COULD ONLY BE USED ON, UM, WITH DEPARTMENTS THAT ARE NOT UTILIZING FEDERAL FUNDS.

RIGHT.

IF WE, THE SECOND SOLICITATION THAT DID NOT INCLUDE LOCAL AND VETERANS, THAT THOSE, UM, AWARDS THAT WERE MADE UNDER THAT CONTRACT OR UNDER THAT SOLICITATION COULD ONLY BE USED THEN FOR THE, UM, DEPARTMENTS THAT ARE, HAVE FEDERAL FUNDING ATTACHED TO IT.

UM, SO I GUESS WHAT THIS REALLY I THINK POINTS OUT IS WHAT WE BROUGHT UP BEFORE, AND I JUST WANNA AGAIN BE CLEAR THAT, UM, WHAT WE DON'T KNOW IS, IS WHAT TO WHAT MAGNITUDE THIS IS SORT OF JUST SAYING IN CASE WE GET TO THAT POINT, AND THIS IS, THIS IS THE ISSUE I BROUGHT UP EARLIER OR AT LEAST TWO MONTHS AGO, WHICH IS WE REALLY GOTTA START DECREASING THE AMOUNT OF, UH, UTILIZATION WHEN IT COMES TO TEMP SERVICES BECAUSE WE'RE PAYING, UH, NEARLY 40% IN FEES WHEN IT COMES TO, TO TEMP SERVICES.

SO, UH, WHILE I CAN APPRECIATE THE RECOMMENDATION THAT YOU'RE GIVING AND, AND IT, AND IT MAKES SENSE AND THINK IT, IT MAKES BETTER SENSE WHEN WE THINK OF THE BIGGER PICTURE AND SAY WE, WE REALLY WANT TO DECREASE THE AMOUNT, UH, OF UTILIZATION WHEN IT COMES TO TEMPS SO THAT WE CAN DECREASE THE AMOUNT OF, OF FEES PAID OUT.

UM, SO, SO I WILL MEAN I'LL BE FINE WITH, WITH WITH THE RECOMMENDATION TODAY.

I JUST, AGAIN, I JUST WANNA REMIND THIS COMMITTEE THAT, UM, WE HAVE A BIGGER PICTURE IN STORE AND I DID TALK WITH THE CITY MANAGER ABOUT THIS PARTICULAR ISSUE.

YOU KNOW, THIS IS A LOT OF, A LOT OF MONEY THAT'S GOING OUT JUST IN FEES AND, UH, THERE'S MANY PROGRAMS THAT, THAT, UM, YOU KNOW, COULD, COULD BENEFIT IN OUR CITY WHEN IT COMES TO, TO THIS, UH, A, A BETTER STRATEGY WHEN IT COMES TO, UH, YOU KNOW, STAFFING OUR, OUR, OUR CITY OR PROVIDING FULL-TIME EMPLOYMENT IN OUR CITY.

SO, UM, I GUESS YOU NEED A, YOU NEED A MOTION? YES.

UH, CHAIR, I'LL JUST CHIME IN AND, AND JUST REITERATE TO THE COUNCILMAN THAT WE ARE COMMITTED TO DOING THAT ANALYSIS.

UM, I'VE SPOKE WITH THE CITY MANAGERS AS WELL AND WE'RE WORKING ON THAT.

SO WE'RE COMMITTED TO TIGHTENING UP, UH, HOW WE USE THESE TEMP AGENCIES, BUT IT BECOMES A, UM, A CAPACITY CONTRACT.

'CAUSE THERE'S DEFINITELY, UH, TIMES WHEN WE NEED TO HAVE TEMPS FILLING IN AND WE'LL BE DOING THAT FINANCIAL ANALYSIS AS WELL.

SO ON, ON THE ONE SIDE, UM, THE TEMP AGENCIES DO CHARGE A MARKUP THAT MARKUP THAT COVERS, YOU KNOW, PAYROLL TAXES, HEALTHCARE THAT THEY GET, UH, PAID LEAVE, THOSE KINDS OF THINGS.

[00:40:01]

DO THAT.

WE SHOULDN'T HAVE TEMPS THAT ARE HERE FOR A LONG PERIOD OF TIME.

AND THAT'S THE ANALYSIS THAT HR IS GOING THROUGH DEPARTMENT BY DEPARTMENT.

UM, THE VOLUME IS QUITE A BIT, SO IT'S GONNA TAKE A LITTLE BIT OF TIME, BUT WE WILL ABSOLUTELY BRING THOSE RECOMMENDATIONS BACK TO THE FULL COUNCIL AND TO YOU.

GOOD.

I, AND I LOOK FORWARD TO THAT BECAUSE I THINK, UH, I'D LIKE FOR US TO LOOK AT HOW WE CAN IMPLEMENT SOME, SOME KIND OF A FRAMEWORK ON HOW WE OPERATE AND HOW WE DETERMINE, UH, THE USAGE OF TEMP SERVICES.

I MEAN, I I'M NOT SAYING THAT, THAT THERE IS NOT A CASE FOR HAVING TEMPS IN THE CITY.

WE HAVE 13,000 EMPLOYEES, BUT, UM, THERE, THERE'S ENOUGH EXAMPLES THAT I'VE SEEN PERSONALLY WHERE THERE'S TEMPS THAT HAVE BEEN HERE, UH, OVER A YEAR.

AND, UH, AND I THINK THAT'S, THAT'S THE KIND OF THING THAT WE NEED TO, WE NEED TO GET AHOLD OF.

SO, UH, AGAIN, SO WE DON'T NEED A MOTION FOR THIS THEN I THINK WE WOULD, YEAH, I THINK WE WOULD LIKE YOUR FEEDBACK.

WE DON'T NORMALLY ASK YOU FOR A MOTION ON A PRES SOLICITATION, BUT I THINK BECAUSE WE'RE, UM, RECOMMENDATION, I THINK WE'D LIKE YOUR SUPPORT ON THE RECOMMENDATION.

YEAH.

I THINK, UM, RAY JUST STEPPED UP AND I THINK, UM, IN SUPPORT OF OUR RECOMMENDATION, WE WOULD LIKE A MOTION, UM, SO THAT WE COULD HAVE SOME GUIDANCE IN THE FUTURE OF HOW, AND AS I MENTIONED, THE VERY NEXT ITEM IS A VERY SIMILAR AND SO WE'D LIKE A MOTION TO APPLY THAT, SO.

WELL, UM, AND AGAIN, JUST FOR THE RECORD, I I WANNA POINT OUT THAT THIS IS CONNECTED TO SORT OF THE, THE BIGGER PHILOSOPHY THAT I HOPE THAT WE CAN DISCUSS.

'CAUSE AS I POINTED OUT, THIS IS NOT REALLY GIVEN US THE FULL MAGNITUDE OF HOW WE UTILIZE, UH, TEMPS AND WE DON'T HAVE THE FRAMEWORK YET.

SO I, I WILL MOTION, UH, TO, TO MOVE THIS, THIS ITEM FORWARD, UH, IN, IN LIGHT OF THE FACT THAT WE'RE GONNA BE GETTING MORE INFORMATION, UH, HERE IN THE NEAR FUTURE REGARDING THE USAGE OF, UH, OR THE FRAMEWORK FOR TEMP SERVICES.

AND THERE IS A SECOND, THERE IS A SECOND.

ARE THERE ANY OTHER QUESTIONS OR CONCERNS ANYONE WOULD LIKE TO SHARE? OKAY, ONE THING THAT, UM, THAT I WILL MENTION ALSO AS WE DO THIS EVALUATION OF THE DIFFERENT, UM, AGENCIES AND THE NEED THAT THE CITY HAS TO HAVE FULL-TIME PEOPLE.

I THINK ONE OF THE THINGS THAT I HAD ASKED ABOUT IS CAN WE GET AN UNDERSTANDING OF WHAT THE BENEFITS ARE THAT THE DIFFERENT COMPANIES PROVIDE, EVEN IF THEY ARE TEMPORARY FOR SIX MONTHS OR A YEAR? UH, AND I THINK THAT'S, THAT'S SOMETHING THAT, UH, IS WORTH CONSIDERING AND WOULD ASK YOUR DEPARTMENTS TO CONSIDER AS THEY DO THESE EVALUATIONS.

YES, SIR.

AND WE, UM, IN DEVELOPING THE CITATION, WORKING WITH DEPARTMENTS WILL ASK THE QUESTIONS AS FAR AS WHAT SALARIES, WAGES DO YOU PROVIDE, WHAT BUSINESS DO YOU PROVIDE, WHAT TYPE OF LEAVE YOU PROVIDE, MAKE THAT AVAILABLE TO THE, MAKE THAT AVAILABLE TO THE EVALUATION COMMITTEE FOR THEIR CONSIDERATION.

SO IT'S BEEN MOVED AND SECONDED.

ANY OTHER QUESTIONS? HEARING NONE.

ANY OPPOSED? NONE OPPOSED.

SO, UH, HOPEFULLY THIS PROCESS WILL WORK OUT VERY WELL AND I UNDERSTAND THE NEXT ITEM IS RELATED TO THIS.

THERE WILL BE A SIMILAR ISSUE AND WHEN CRAIG GOES OVER THE EVALUATION SCORING, RIGHT, WE'LL TALK ABOUT THAT BECAUSE THERE'S LOCAL CURRENTLY WE DIDN'T WANNA BE PRESUMPTUOUS, RIGHT? SO THERE'S LOCAL IN THERE, THOSE LOCAL POINTS WOULD BE REALLOCATED TO OTHER OTHER CRITERIA.

13, CITYWIDE SECURITY SYSTEM, INSTALLATION, MAINTENANCE AND SERVICES.

SO NOW WE MOVE TO ITEM NUMBER

[13. 19-9129 Citywide Security Systems Installations, Maintenance, and Services [Ben Gorzell, Chief Financial Officer; Craig Hopkins, Chief Information Officer, Information Technology Services]]

WE'LL BE HEARING FROM CRAIG HOPKINS.

GOOD MORNING, CRAIG.

GOOD MORNING.

UM, BEFORE WE JUMP INTO THE FIRST CONTRACT, I WANTED TO KIND OF GIVE YOU A SUMMARY OF THE TWO CONTRACTS YOU'RE ABOUT TO HEAR ABOUT AS WE GO THROUGH THIS.

UH, THE FIRST CONTRACT IS ABOUT SECURITY INSTALLATION SERVICES, WHICH IS REALLY ABOUT HARDWARE AND SOFTWARE AND DEVICES.

AND THE SECOND CONTRACT IS ABOUT SECURITY OFFICERS, BUT THE LABOR WE USE TO DO THAT.

AND, UM, THESE ARE TRADITIONALLY CONTRACTS THAT WE HAVE MANAGED AS A CITY ACROSS MULTIPLE DEPARTMENTS FOR ALL THE NEED SECURITY SERVICES.

UH, AS YOU CAN IMAGINE IN THE LAST YEAR OR SO, THE DEMAND FOR THESE TYPES OF SERVICES HAS INCREASED DRAMATICALLY.

UM, PRIMARILY I WANTED YOU TO HAVE IN CONTEXT ACROSS THESE TWO CONTRACTS IS MORE CAMERAS IN SPECIFIC AREAS THAT THE INDIVIDUAL DEPARTMENTS NEED, UM, SURVEILLANCE FOR, UH, SPEC SPECIFIC EQUIPMENT THAT SUPPORT THOSE CAMERAS SUCH AS SERVERS, UM, NETWORK CONNECTIONS, THOSE TYPES OF CONVERSATIONS.

AND THEY'RE PRIMARILY DRIVEN BY, UH, A MANUFACTURER THAT NEEDS TO BE LICENSED IN THOSE SPECIFIC SYSTEMS. SO THEY'RE NOT COMMODITY WHERE WE CAN JUST GO OUT AND BUY THOSE SERVICES AND EQUIPMENT, UM, JUST FROM ANYBODY AND BRING THEM IN.

WE HAVE A VERY SPECIFIC SET OF CRITERIA TO FOLLOW AND WE NEED

[00:45:01]

LICENSED MANUFACTURERS AND LICENSED INSTALLERS TO DO THAT.

SO YOU'LL SEE THAT IN THE FIRST ONE.

AND THEN THE SECOND ONE IS DRIVEN BY A, A GREATER DEMAND TO HAVE MORE UNIFORMED PERSONNEL, BOTH ARMED AND UNARMED IN OUR FACILITIES AS WE GO FORWARD.

WE SEE THAT IN OUR OWN FACILITY AS WE COME HERE TOGETHER.

SO A SIGNIFICANT DEMAND INCREASE ON BOTH OF THOSE DRIVEN BY WHAT WE'RE PLANNING TO DO WITH CITY TOWER, WHICH IS COMING UP AS WELL, A VERY LARGE DIFFERENT TYPE OF FACILITY FOR US TO MANAGE GOING FORWARD.

UM, WE ARE THE LANDLORD OF THAT FACILITY, NOT ONLY FOR 1500 EMPLOYEES, BUT ALSO FOR I BELIEVE AROUND 500 TENANTS IN THERE.

AND WE, THE CITY WILL BE PROVIDING THE SECURITY SERVICES, BOTH SOFTWARE, HARDWARE, CAMERAS, AND PERSONNEL AS WE GO FORWARD.

UH, AS WE'VE MADE CHANGES TO, UH, CITY COUNCIL PLAZA TO AMIS CITY HALL, THERE'S AN INCREASE IN DEMAND FOR THOSE AS WELL.

AND YOU SEE THAT IN, IN THE, UH, THE PLANS FOR THE CONTRACTS AS WELL.

AND WE ARE STARTING TO GET MORE REQUESTS FROM THE DEPARTMENTS.

AS WE KNOW, THE DSD ONE STOP HAS ADDED THESE SECURITY FEATURES IN THE, IN THE PAST, AND WE KNOW THERE'S GONNA BE MORE DEPARTMENTS ASKING THEM FOR WE GO FORWARD.

SO I JUST WANTED YOU TO HAVE CONTEXT TO THOSE TWO THINGS, WHY THE NUMBERS HAVE INCREASED.

UM, IT DOES GIVE US THE ABILITY TO DO CAPACITY PLANNING, SO IN MOST OF THESE CASES WE CAN SEE A YEAR OR TWO OUT THE SPECIFIC WORK WE NEED TO DO.

BUT UNDER THESE AGREEMENTS, WE WANNA MAKE SURE WE HAVE THE CAPACITY AS MORE PROJECTS COME IN AND MORE DEMANDS COME FORWARD THAT WE'RE ABLE TO MANAGE THAT.

I JUST WANTED TO USE THAT AS A SETUP.

VERY GOOD.

YOU WANT ME TO DO IT? DO YOU WANT ME TO DO THESE SETUPS? I'M SORRY, JUST CHECKING.

I DIDN'T KNOW WHEN WE WERE GONNA HAND OFF.

I JUST WANTED TO MAKE SURE.

SO, UM, PASSING TO YOU , UH, UH, THERE'S A LOT GOING ON.

TROY .

ALRIGHT, SO THE FIRST CONTRACT IS, UM, PRIMARILY FOR SECURITY SYSTEM INTEGRATION CONTRACTORS.

AGAIN, THIS IS ACCESS CONTROLS, VIDEO SURVEILLANCE, INTRUSION ALARM SYSTEMS. UM, WE DID OUR REQUEST FOR A PROPOSAL.

THERE'S A THREE YEAR, UM, WITH TWO ONE YEAR RENEWAL OPTIONS THAT'S PLANNED FOR THIS ONE.

OUR CURRENT CONTRACT EXPIRES AT THE END OF SEPTEMBER.

UH, AND THIS WE BELIEVE IS ABOUT A $23 MILLION CAPACITY CONTRACT AT THIS TIME.

BASED ON THE INFORMATION WE KNOW, UM, YOU CAN SEE THE VOTING TEAM ON THE RIGHT HAND SIDE, PRIMARILY DRIVEN BY THE IT TEAM THAT WE HAVE A PHYSICAL SECURITY, UH, INFORMATION TECHNOLOGY TEAM THAT IS DEDICATED JUST TO PHYSICAL SECURITY IN THE CITY.

UM, WE LOOKED AT, UH, 35, UM, SORRY, YOU CAN SEE ON THE LEFT HAND SIDE YOU CAN SEE THE N I G P CODES THAT WE WENT OUT TO.

AND THE NUMBER OF VENDORS THAT WE NOTIFIED HERE WAS OUR EVALUATION CRITERIA.

UM, PROPOSED PLAN WAS 30 POINTS FOR EXPERIENCE, 40 FOR THEIR PLAN, 15 FOR PRICING, 10 FOR LOCAL PREFERENCE, AND FIVE FOR VETERAN OWNED.

AND THIS IS THE SLIDE THAT I SPOKE TO EARLIER, UM, WITH THE, UM, DECISION THAT WE JUST MADE ON TEMPORARY STAFFING SERVICES.

THIS CONTRACT IS VERY SIMILAR IN THAT IT'S A CITYWIDE, UM, CONTRACT WHICH WILL HAVE ACCESS TO FEDERAL, FEDERAL FUNDING FOR SOME OF THE INSTALLATIONS OF THESE SECURITY SYSTEMS. SO WHAT WE'D RECOMMEND BASED ON THE, THE PRIOR DECISION THAT WAS MADE TO REALLOCATE THE LOCAL PREFERENCE POINTS OF 10 AND THE VETERAN OWNED SMALL BUSINESS PREFERENCE POINTS OF 15 TO MOVE THAT TO EXPERIENCE BACKGROUND OR QUALIFICATION FROM 30 TO 40 AND PROPOSED PLAN FROM 40 TO 45.

SO THAT'D BE A MODIFICATION BASED ON THE DISCUSSION WE JUST HAD ON TEMPORARY SERVICES.

THAT WAS THE HANDOFF I WAS LOOKING FOR.

I WAS UNCLEAR ABOUT.

UM, UH, AND THEN, UH, ON THE SAB BETA GOALS, UM, YOU COULD SEE THE SUB BETA GOALS OF 5%, UM, WE'RE SET FOR THIS.

AND THE GOAL SETTING COMMITTEE, WE TOOK THEIR, THROUGH BOTH OF THESE COMMITTEES, I'M SORRY, BOTH OF THESE CONTRACTS, WE WENT THROUGH AN EXTENSIVE REVIEW OF OUR SABBA GOALS ON BOTH OF THEM, UM, TO MAKE SURE WE WERE DOING THIS RIGHT.

UM, PRES SOLICITATION WAS IN FEBRUARY, UH, WE RELEASED IN MARCH.

UM, WE RECEIVED, WE EXPECT TO RECEIVE BACK ON MAY 8TH.

AND, UH, OUR INTENT IS TO NEGOTIATE IN JULY AND BRING BACK IN AUGUST FOR OUR BRIEFING SO THAT WE CAN HAVE THIS IN PLACE FOR OCTOBER 1ST WHEN OUR CURRENT CONTRACT EXPIRES.

IS THAT IT? OKAY.

ANY QUESTIONS? UM, YOU KNOW, AGAIN, UH, I'M, I'M CONCERNED ABOUT A LOT OF THESE SOLICITATIONS AT THIS POINT IN TIME BECAUSE OF WHAT'S GOING ON IN THE GENERAL COMMUNITY AND AROUND

[00:50:01]

THE COUNTRY.

SO I HOPE THAT WE CAN HAVE SOME KIND OF FLEXIBILITY AND MAYBE KEEP THIS COMMITTEE INFORMED IF WE START RUNNING INTO CHALLENGES IN TRYING TO GO OUT WITH THESE PRES SOLICITATIONS AND, AND GETTING REASONABLE AND RESPONSIBLE RESPONSES TO THEM.

SO THAT'S, THAT'S THE ONLY THING I I WOULD BRING UP AT THIS TIME.

CHAIRMAN, WE CAN, WE CAN ABSOLUTELY DO THAT.

WE WILL, UM, CONTINUE TO MONITOR WHAT'S HAPPENING AS WE, IF WE ISSUE SOLICITATIONS AND WE START TO SEE ISSUES, WE'LL BRING THAT BACK TO THE COMMITTEE AND NOTIFY YOU THAT WE'RE HAVING SOME ISSUES AND WE MAY NEED TO DELAY THAT COULD RESULT IN SOME EXTENSIONS OF CURRENT CONTRACTS, BUT WE WOULD NOTIFY YOU OF THAT AS WELL.

YEAH, EVEN IN, EVEN IN A COUPLE OF THE CONSENT ITEMS THAT, THAT WE APPROVED, THEY WERE SAYING, OKAY, WE'RE GONNA GO OUT AND GET THIS SOLICITATION.

UH, AND YOU KNOW, IF YOU'RE TALKING ABOUT CONSTRUCTION FOR EXAMPLE, I MEAN, WE DON'T KNOW WHAT TO EXPECT IN CONSTRUCTION IN THE NEXT 30, 60, 90 DAYS.

UH, AND THAT'S, THAT VERY WELL MAY AFFECT THE VALUE OF A CONTRACT THAT SOMEBODY PUTS OUT, UH, WHETHER IT'S PROVIDING EQUIPMENT OR IT'S, IT'S DOING A CONSTRUCTION JOB OR SOMETHING.

SO, UM, I THINK WE NEED TO MAINTAIN THE FLEXIBILITY OF EVEN SAYING MAYBE WE NEED TO DELAY BEFORE WE FINALIZE APPROVAL OF SOME OF THESE THINGS UNTIL THE CONDITIONS HAVE STABILIZED A LITTLE BIT MORE.

BUT AS FAR AS ANYTHING THAT'S, THAT'S BEEN PUT FORWARD AS A CONTRACT THAT WE'RE APPROVING NOW, I THINK, YOU KNOW, WE OUGHT TO GO THROUGH WITH THOSE, BUT I'M, I'M JUST CONCERNED AND I THINK ALL OF US NEED TO PAY CLOSE ATTENTION TO WHAT KIND OF FEEDBACK WE START GETTING IN THESE SOLICITATIONS THAT GO OUT COUNCIL A MOMENT THAT JUST TO ADD COUNCIL, WE'LL LOOK AT IT ON A CASE BY CASE BASIS.

UM, YOU KNOW, OBVIOUSLY THERE'S A LOT GOING ON.

WE DON'T KNOW, YOU KNOW, WHERE THE ECONOMY'S GONNA BE IN 30 DAYS, BUT IN SOME CASES, OUR ABILITY TO MOVE PROJECTS FORWARD DEPENDING UPON WHAT THEY ARE, CAN, CAN HELP THE ECONOMY BECAUSE WE'RE GETTING WORK OUT THERE AND, AND CONTRACTORS ARE LOOKING FOR THAT WORK AND IT HELPS THEM KEEP PEOPLE EMPLOYED.

SO THE EXTENT WE CAN MANAGE IT FINANCIALLY AND WE CAN GET THEM OUT, THAT CAN BE A BENEFIT TO THE ECONOMY, BUT IT WILL BE A CASE BY CASE I THINK LOOK, BECAUSE YOU'LL HAVE DIFFERENT IMPACTS TO DIFFERENT SECTORS OF THE ECONOMY.

SO JUST WANTED TO ADD THAT TO THAT COUNCIL.

THANK YOU CHAIR.

UH, SO FOR ALL OF THE CURRENT CONTRACTS, FOR INSTANCE, THAT EXPIRE IN SEPTEMBER OR ANY OF THESE, I'M ASSUMING WE HAVE KIND OF THE ABILITY TO JUST EXTEND IN, SO LIKE 30 DAY EXTENSION TYPES OR, OKAY.

YEAH.

AND SO ON ALL OF THEM, I, I, I PATSY WILL PROBABLY KNOW ON THIS PARTICULAR CONTRACT, DO WE HAVE AN OPPORTUNITY TO EXTEND EITHER BY MONTH OR BY YEAR, BY BY MONTH, BY MONTH.

BY MONTH, OKAY.

YES.

GOOD.

AND THEN I'D, UM, ALSO BE CURIOUS TO KNOW HOW AFTER, UH, AND, AND I KNOW THERE'S A LOT OF UNCERTAINTY AND I GUESS THAT'S KIND OF WHERE, WHERE MY NEXT QUESTION LEADS AS FAR AS LOCAL PREFERENCE.

AND I KNOW WE JUST SAW THE OTHER PRESENTATION, THERE'S SOME GUIDELINES, FEDERAL GUIDELINES THAT WE HAVE TO FOLLOW, BUT I DO THINK THAT THIS IS AN OPPORTUNITY TO RAMP UP OUR LOCAL PREFERENCE IN GENERAL.

AND I DON'T KNOW HOW MUCH MORE WE WOULD BE ABLE TO JUST TAKE A DEEP DIVE INTO WHAT WE'RE CURRENTLY USING AS LOCAL PREFERENCE BECAUSE OUR ECONOMY, OUR LOCALLY MIGHT, MIGHT BE HURTING IN THIS PARTICULAR CON UH, CONTRACT.

UM, WE REQUIRE A LICENSED PROVIDER AND THAT HAS A, IS A RESELLER OF THE EQUIPMENT THAT WE USE.

SO THAT'S GONNA CONSTRICT WHO LOCALLY HAS THE ABILITY TO DO THAT.

UM, WE'LL LEARN THAT AS WE GO THROUGH THE PROCESS, UH, WHERE SOME OF OUR OTHER ITEMS ARE MORE COMMODITY BASED, WE'LL HAVE A LITTLE BIT MORE FLEXIBILITY.

THIS ONE'S GONNA BE TIGHT BECAUSE OF THAT, BUT WE'RE GONNA CONSIDER THAT AS WE GO THROUGH IT.

GREAT.

AND OUTSIDE OF THAT FEDERAL REQUIREMENT THAT TROY JUST WENT OVER, UM, WE ARE APPLYING THAT LOCAL PREFERENCE ON EVERY SOLICITATION WHERE WE CAN LEGALLY DO SO.

ANY OTHER MEMBERS HAVE ANY QUESTIONS? OKAY, HEARING NONE, UH, UH, ENTERTAIN A, A MOTION TO APPROVE THIS PRESALE? NO, WE DON'T HAVE TO ON THIS.

IT'S JUST A BRIEFING ON WHAT'S GONNA GO OUT.

ITEM NUMBER 14, SECURITY OFFICER SERVICES.

THANK YOU VERY MUCH.

CRAIG, YOU WANT TO GO ON TO THE NEXT ONE ON PERSONNEL

[14. 20-1760 Security Officer Services [Ben Gorzell, Chief Financial Officer; Craig Hopkins, Chief Information Officer, Information Technology Services]]

SO SIMILAR SETUP FOR THIS ONE.

UM, I DO WANT TO SAY THIS IS PRIMARILY AROUND THE OFFICERS, THE PERSONNEL THEMSELF, NOT THE EQUIPMENT AS WE GO THROUGH THIS.

CONTRACT EXPIRES SAME TIME.

UH, THE ESTIMATED CONTRACT VALUE ON THIS ONE IS 40 MILLION HAS GONE UP SIGNIFICANTLY FROM THE LAST TIME WE DID A FIVE YEAR AGREEMENT.

AND THAT IS PRIMARILY BECAUSE OF ALL THOSE NEW THINGS I TALKED ABOUT.

UH, CITY TOWER, CITY HALL, D S D, AND NEW DE DEPARTMENTS

[00:55:01]

THAT ARE COMING ON AND ASKING FOR, UH, ARMED AND UNARMED OFFICERS TO SUPPORT THEM AS WE GO FORWARD.

THAT'S WHY THE CONTRACT CAPACITY HAS GROWN.

A MUCH LARGER GROUP THAT WE COULD REACH OUT TO IN THIS CASE THAN THE, THE PREVIOUS CONTRACT BECAUSE IT'S MORE ABOUT LABOR, HOWEVER, IT'S VERY SPECIFIC, THE TYPE OF LABOR, THEIR SKILLS, THEIR TRAINING AND SO FORTH.

ESPECIALLY WHEN YOU GET INTO ARMED SECURITY OFFICERS AS WELL.

UM, TROY, SAME APPROACH HERE.

OKAY, THIS ONE'S SEPARATE.

UM, SO 25 POINTS FOR, UH, EXPERIENCE, 35 FOR THE PROPOSED PLAN, 20 FOR PRICING AND 15 AS THE, AS THE PRIME.

UM, WE DID HAVE, UH, GOALS OF 10% FOR OUR SUB BETA GOALS ON THIS ONE.

AGAIN, ANOTHER GOOD CONVERSATION WITH THE TEAM ABOUT WHAT WAS BEST TO DO HERE.

AND, UM, YOU SEE THE GOAL SETTING COMMITTEE THAT WAS PART OF THAT SAME AS THE LAST.

OUR TIMELINE IS VERY SIMILAR TO THE ONE YOU SAW BEFORE.

RELEASE, RELEASE THIS IN, UH, END OF MARCH.

UH, COME BACK AT THE MIDDLE OF MAY IN ORDER TO WORK THROUGH THE, UH, UM, EVALUATION WITH OUR INTENT TO COME BACK HERE IN AUGUST AND THEN PUT THIS IN PLACE FOR OCTOBER 1ST.

SO I WOULD WOULD EXPECT THESE TWO TO RUN SIDE BY SIDE AS WE TALK WITH YOU TO GO FORWARD.

VERY GOOD.

ANY QUESTIONS FROM ANY OF THE COUNCIL MEMBERS? UH, COMMITTEE MEMBERS? NO.

AGAIN, UM, YOU KNOW, I SEE THESE DEADLINES IF DEADLINES CAN'T BE MET, IF WE DON'T GET THE RESPONDENTS OR RESPONDENTS ARE SAYING THEY NEED MORE TIME BECAUSE OF CONDITIONS THAT THAT MAY BE EXISTING.

UM, I WOULD, I WOULD LIKE TO KNOW THAT IF YOU GET THOSE KIND OF RESPONSES WHEN THESE SOLICITATIONS GO OUT, THAT YOU CAN NOTIFY OUR COMMITTEE AND MAYBE RECOMMEND EXTENSIONS SO THAT WE DO GET ENOUGH RESPONSES TO MAKE SURE THESE GO THROUGH.

IF YOU RUN INTO, YOU KNOW, CONDITIONS WHERE PEOPLE SAY, WELL, I CAN'T TELL YOU HOW MANY, IF, IF I CAN MEET YOUR NEEDS FOR THIS MANY PEOPLE BECAUSE SOME OF MY PEOPLE AREN'T WORKING OR, YOU KNOW, ET CETERA.

SO I, I JUST WANNA MAKE SURE WE RETAIN THAT KIND OF FLEXIBILITY AND YOU LET THIS COMMITTEE KNOW IF THINGS WOULD BE BETTER SERVED, IF THEY WERE DELAYED A LITTLE WHILE LONGER TO MAKE SURE THAT THE COMPANIES CAN GIVE US AN ACCURATE RESPONSE TO THESE SOLICITATIONS.

SO JUST, JUST A WORD OF WARNING, I GUESS.

ANY OTHER, ANY OTHER CONCERNS? OKAY.

HEARING NONE THEN.

UH, I KNOW THIS IS A BRIEFING, WE DON'T HAVE TO TAKE ANY ACTION ON IT.

IT LOOKS GOOD.

THANK YOU VERY MUCH, CRAIG.

AND THIS IS COMPREHENSIVE PROPERTY MANAGEMENT FOR THE CITY TOWER.

WE STILL HAVE, UH, ANOTHER ITEM THAT'S ITEM NUMBER 15,

[15. 20-2475 Comprehensive Property Management for City Tower [Lori Houston, Assistant City Manager; John Jacks, Director, Center City Development & Operations]]

GOOD MORNING CHAIR AND THE MEMBERS OF THE AUDIT AND ACCOUNTABILITY COMMITTEE.

MY NAME IS JOHN STEVENS FROM C C D O.

UH, I MANAGE THE CITY TOWER RENOVATION PROJECT AND COORDINATION WITH T C I AND ASSISTANT CITY MANAGER, LORI HOUSTON.

UH, I'M HERE TO GIVE YOU A BRIEF PRESENTATION ON A R F P FOR COMPREHENSIVE PROPERTY SERVICES FOR THE TOWER.

SO THE CITY INTENDS TO SOLICIT PROPOSALS FOR A PROPERTY MANAGEMENT FIRM TO OVERSEE BROKERAGE TENANT RELATIONS, CUSTODIAL REPAIR AND MAINTENANCE, AND DAY-TO-DAY OPERATIONS OF THE BUILDING.

UH, THIS IS A VERY COMMON APPROACH IN THE PRIVATE MARKET.

UH, WE INTEND TO CONTINUE OPERATING THE ATTACHED GARAGE, UH, AS WELL AS OVERSEEING THE SECURITY SERVICES THAT CRAIG JUST BRIEFED YOU ON.

UM, AS A REMINDER, THE BUILDING WILL HAVE SEVEN FOURS OF TENANT SPACE, UH, OR APPROXIMATELY 125,000 SQUARE FEET.

AND THE REMAINDER WILL BE O UH, OCCUPIED BY THE CITY.

UH, THIS IS A KIND OF COMPLEX, UH, BUILDING WHERE WE ARE THE PRIMARY TENANT AND WE HAVE A LOT OF REQUIREMENTS AND NEEDS AS WELL AS OUR, UH, PRIVATE MARKET TENANTS.

WE BELIEVE THAT A, UH, R F P APPROACH FOR A COMMERCIAL FIRM IS THE BEST APPROACH TO TAKE WITH THIS.

SO YOU CAN SEE HERE THAT WE'RE LOOKING AT A THREE YEAR TERM WITH TWO ONE YEAR RENEWAL OPTIONS WITH A TOTAL CONTRACT VALUE OF 9.8 MILLION FOR THAT INITIAL THREE YEAR TERM, THE VALUE WOULD BE 5.88 MILLION.

OOPS, EXCUSE ME.

SO THERE ARE THREE N I G P CODES HERE, UH, THAT HAVE BEEN IDENTIFIED, UH, THE REAL ESTATE MANAGEMENT SERVICES AT 29%.

THAT'S BASICALLY THE, UH, TENANT RELATIONS, THE BROKERAGE, THE OVERALL PROPERTY MANAGEMENT, THE DAY-TO-DAY OPERATIONS OF THE BUILDING.

UM, I'LL GIVE YOU AN EXAMPLE OF FIRMS THAT DO THIS TYPE OF WORK.

UH, TRANSWESTERN OR C B R E C B E NATIONALLY DOES A LOT OF PROPERTY

[01:00:01]

MANAGEMENT.

UH, WE'VE IDENTIFIED SEVERAL FIRMS LIKE THAT IN THE MARKET.

UM, THOSE FIRMS WOULD THEN CONTRACT MOST LIKELY, UH, WITH CUSTODIAL, UH, SERVICES FIRMS AND PROVIDE BUILDING MAINTENANCE AND REPAIR.

UH, SO THE EXPECTATION WOULD BE THAT THEY WOULD PROVIDE ONSITE PROPERTY MANAGEMENT STAFF, UH, AS WELL AS TRADES EMPLOYEES TO OVERSEE, UH, THE REPAIR AND MAINTENANCE PROGRAMS. UH, AND THEN THEY WOULD ALSO COORDINATE CONTRACTING WITH MAJOR, UH, MAINTENANCE CONTRACTS FOR ELEVATORS AND, UH, LIKE HVAC SYSTEMS. SO THE, THAT'S THE BREAKDOWN OF THE N I G P CODES.

THEY IDENTIFIED 324, UH, FIRMS IN OUR CENTRAL REGISTRY, A MUCH LARGER NUMBER IN THE VETERAN, OR IN THE S B A, UH, LIST.

AND WE'VE IDENTIFIED SIX TARGETED VENDORS FOR OUTREACH.

THE EVALUATION COMMITTEE WILL INCLUDE WARD HOUSTON, JORGE PEREZ, UH, MICHAEL SENDED, ANNA BRADSHAW, PETE ELISE, WHO'S OUR REAL ESTATE ADMINISTRATOR AND MYSELF.

SO THE EVALUATION CRITERIA ARE BROKEN DOWN AS 20 POINTS FOR, FOR EXPERIENCE, BACKGROUND AND QUALIFICATIONS, 40 POINTS FOR THE PROPOSED PLAN, 15 POINTS FOR PRICING.

AND YOU CAN SEE THE REMAINING POINTS ARE MADE UP FOR OF S BETA AND LOCAL PRESS, UH, PREFERENCE AND VETERAN OWNED SMALL BUSINESS.

UM, WE INTEND TO PUT THIS OUT IN MID-APRIL, UH, WITH IT OUT FOR 45 DAYS, COMING BACK AT THE START OF JUNE.

UH, WE'D USE JUNE AND JULY FOR THE EVALUATION PERIOD.

UH, AND WE'D EXPECT TO HAVE A NEGOTIATED CONTRACT IN EARLY AUGUST AND RETURN TO THE AUDIT AND ACCOUNTABILITY COMMITTEE MEETING IN AUGUST, UH, IN CANCEL IN COUNCIL SHORTLY THEREAFTER.

UM, THAT WOULD GET US TO A CONTRACT DATE AT THE START OF NEXT FISCAL YEAR.

UM, WHICH TIME IS WELL WITH OUR MOVE INTO THE BUILDING, WHICH WILL BE DELIVERED IN PHASES AS FOURS ARE DELIVERED.

SO THAT'S A BRIEF OVERVIEW.

I'M AVAILABLE FOR ANY QUESTIONS.

UH, I HAVE A QUESTION.

UH, WILL THE MANAGEMENT TEAM THAT TAKES OVER THEN GET INTO REHABILITATING PARTS OF, OF THE BUILDING AREAS THAT NEED CLEANING, PAINTING, THINGS LIKE THAT? SO THEY'LL BE RESPONSIBLE FOR CUSTODIAL SERVICES, AND THEY WILL HELP US COORDINATE ANY IMPROVEMENTS, MOST LIKELY.

SO IF WE HAVE TENANTS, SO WITH THE BROKERAGE COMPONENT, YOU KNOW, THEY'LL BE IDENTIFYING TENANTS AND IDENTIFYING TENANT IMPROVEMENTS AND FINISH OUT THAT'S REQUIRED.

AND THEN THEY'LL BE HELPING US COORDINATE THE DELIVERY OF THOSE SERVICES.

WELL, ONE SIMPLE EXAMPLE OF ME THAT IT'S A LITTLE ANNOYING, MAYBE IT SHOULDN'T BE, BUT I, I PARK IN A CITY GARAGE OVER THERE NOW, AND SOMETIMES WHEN I'M WALKING DOWN THE STAIRWELL TO GET TO THE GROUND FLOOR, I SEE PAINT PEELING OFF THE WALLS AND IT, IT, IT JUST LOOKS PRETTY BAD, LIKE IT HASN'T BEEN MAINTAINED IN YEARS.

AND IS THAT SOMETHING THAT THEY WOULD THEN SAY, THIS NEEDS TO BE TAKEN CARE OF AND THEY'D UNDERTAKE THAT? YES, THEY WOULD HELP US COORDINATE ALL NEEDS FOR REPAIR AND MAINTENANCE IN THE BUILDING.

I THINK THE COUNCILWOMAN HAS SOME QUESTIONS.

THANK YOU, CHAIR.

YES.

AND I REALLY, ONE QUESTION THAT I HAVE, I NOTICED THAT ON YOUR, UH, COMMITTEE, YOU HAD, UH, ONE MEMBER THAT, UH, IS A RESIDENT, AND I DON'T THINK I'VE SEEN THAT IN OTHER SOLICITATIONS.

WAS THERE A REASON, UM, OR, OR MAYBE HELP ME UNDERSTAND WHEN WE DECIDE THAT A RESIDENT NON-CITY EMPLOYEE OR EXTERNAL STAKEHOLDER MIGHT BE INVOLVED? I'M SORRY.

SO YOU'RE SAYING THAT THERE IS A LACK OF A RESIDENT? NO, THERE IS.

YOU, YOU ALL HAVE ON, I'M TRYING TO FIND THE SLIDE NOW.

UM, ON SLIDE NUMBER FOUR OF FIVE, YES.

ON THE GOAL SETTING COMMITTEE, THAT'S THE GOAL SETTING COMMITTEE, NOT THE EVALUATION COMMITTEE.

OH, OKAY.

BUT DO WE ALWAYS HAVE A RESIDENT ON THE GOAL SETTING COMMITTEES? YES.

AS PART OF THE SUB BETA ORDINANCE, UH, THERE IS A CITIZEN, IS IT ONE OR TWO? TWO, THERE'S TWO CITIZEN REPRESENTATIVES THAT SIT IN AS PART OF THAT PROCESS.

IT'S A PART, IT'S PART OF THE ORDINANCE THAT WAS ESTABLISHED BY THE COUNCIL.

SORRY, I, I GUESS I'VE MISSED THAT ON THE OTHER GOAL SETTING COMMITTEES.

I, I, I HADN'T NOTICED THAT THERE WAS THAT REQUIREMENT, SO I APPRECIATE IT.

I JUST DIDN'T, I, I HADN'T SEEN THE CONSISTENCY.

SO THAT MIGHT, THAT MIGHT BE MY OVERSIGHT.

I'LL GO BACK AND LOOK AT ALL OF THEM.

SO, AND ON THE EVALUATION COMMITTEE MEMBERS, YOU'VE PROBABLY SEEN THAT FROM TIME TO TIME.

WE DO INVITE MEMBERS TO PARTICIPATE ON THE EVALUATION COMMITTEE, DEPEND ON, DEPENDING UPON THE TYPE OF SOLICITATION.

OKAY, GREAT.

DIFFERENT TOOLS THAT CAN BE PROVIDED AND APPLIED TO A SOLICITATION.

YEAH, I WOULD PRESUME IF THIS IS A BUILDING THAT THE PUBLIC'S GONNA USE, YOU'D INVITE MORE PUBLIC INPUT AS OPPOSED TO BUYING EQUIPMENT FOR SECURITY, WHICH PUBLIC ISN'T GONNA HAVE MUCH INPUT INTO.

IS THAT ABOUT ACCURATE? AND THE GOAL SETTING IS REALLY LOOKING AT HOW, WHAT TOOLS UNDER THE SUB BETA ORDINANCE SHOULD BE APPLIED TO THE SOLICITATION.

SO THEY'RE LOOKING AT, YOU KNOW, THERE'S A NUMBER OF, UH,

[01:05:01]

SO THAT GOAL SETTING TEAM MEETS, THEY LOOK AT THE SCOPE OF THE R F P OR THIS SOLICITATION, AND THEN THEY MAKE RECOMMENDATIONS AROUND SUBCONTRACTING GOALS, YOU KNOW, SHOULD HAVE A S B E PRIME TOOL APPLIED TO IT FOR POINTS.

SO, UM, THAT'S REALLY THEIR FOCUS.

THE EVALUATION COMMITTEE IS THERE TO ACTUALLY EVALUATE PROPOSALS THAT COME IN AND, AND, AND SCORE THOSE.

COUNCILMAN YOU HAD A QUESTION? OH, OKAY.

I'M SORRY.

COUNCILMAN STILL HAS, SORRY, CHAIR.

THAT'S OKAY.

UH, HOW ARE THEY SELECTED? SO, ARE THEY A MEMBER OF YOUR SPAC? GOOD MORNING, EVERYONE.

UH, I'M QUA.

I'M THE INTERIM ASSISTANT DIRECTOR FOR SMALL BUSINESS OFFICE.

SO THE TWO CITIZEN MEMBERS ARE APPOINTED AT LARGE BY COUNCIL, AND THEY GO THROUGH THE PROCESS WITH THE A W T C.

SO I GUESS I'M, I'M, MAYBE I HAVEN'T, UH, TAKEN PART YET IN THAT APPOINTMENT PROCESS.

I WAS KIND OF CONFUSED.

SO THANK YOU FOR, FOR LETTING ME KNOW THAT.

OF COURSE.

AND THEY VOTE ON ALL PROJECTS ABOVE 3 MILLION, UM, INCLUDING LOBIT.

AND, UH, IF THE HIGH PROFILE PROJECTS MEET THAT THRESHOLD OVER 3 MILLION, THEN YOU SEE THEM.

SO YOU MAY NOT SEE THEM ON ALL HIGH PROFILE SOLICITATIONS.

GREAT.

THANK YOU FOR THAT CLARIFICATION.

SO THE PEOPLE WHO ARE APPOINTED ARE FROM THE SS A C COMMITTEE? NO, SS A C COMMITTEE IS A VERY, UH, IT'S A DIFFERENT BOARD COMMITTEE.

THESE ARE THE TWO MEMBERS THAT ARE APPOINTED AT LARGE, UM, BY COUNCIL, WHICH GO THROUGH THE APPLICATION PROCESS FROM E W T C.

YOU KNOW, I'M CONFUSED NOW, HOW DO WE APPOINT PEOPLE AT LARGE TO BE ON AN EVALUATION COMMITTEE? THEY'RE NOT ON THE EVALUATION, SIR.

THESE ARE THE CITIZEN MEMBERS ON THE GOAL SETTING COMMITTEE ON THE GOAL SETTING.

I DON'T EVER REMEMBER APPROVING A GOAL SETTING COMMITTEE, SO THAT'S WHY IT'S NEWS TO ME TOO.

CAN ANYBODY CLARIFY THAT TO ME? THE GOAL SETTING COMMITTEE WAS ESTABLISHED WITH THIS ABETA ORDINANCE IN , I DON'T REMEMBER WHAT YEAR.

YES, THAT'S BEEN A WHILE.

SO IT'S, WHEN WE PASSED THE ORDINANCE IN 2011, THERE WAS, THERE WAS A WHOLE NEED ABOUT INCLUDING, UM, UH, FEEDBACK FROM CITIZEN MEMBERS ON OUR GOAL SETTING PROCESS.

FOR INSTANCE, WHEN WE ARE LOOKING AT ALL THESE PROJECTS ABOUT SETTING GOALS, UH, WE JUST WANTED AN INPUT FROM A NEUTRAL ENTITY.

SO THAT'S WHY TWO GOAL SETTING MEMBERS WERE ADDED AS PART OF THE ORDINANCE TO PROVIDE FEEDBACK AND VOTE ON GOALS THAT ARE BEING SET ON PROJECTS THAT ARE VOTED, UH, VALUED OVER 3 MILLION AND ABOVE.

I'M GONNA ASK THE CITY STAFF TO GIVE US AN UPDATE ON THIS GOAL SETTING PART OF, OF THIS PROCESS.

COUNCILMAN, YOU HAD A COUPLE OF QUESTIONS? GO AHEAD.

DON'T ASK ABOUT THOSE GOAL SETTING PEOPLE.

WILL NOT BE ANY REQUIREMENTS THAT YOU PAY A CERTAIN WAGE OR BENEFIT LEVELS, BUT WE WILL ASK THE QUESTIONS OF THEM, WHAT DO THEY PROVIDE? OKAY.

I WASN'T GONNA, UM, ACTUALLY, I WAS JUST GONNA MENTION GOING BACK TO THE EVALUATION MODEM MEMBERS, I'M GLAD TO SEE THAT WE, WE HAVE JORGE PEREZ THERE.

UM, YOU, BECAUSE SOME OF THE QUESTIONS YOU JUST ASKED, I MEAN, I THINK THAT HAVING SOMEBODY LIKE JORGE AND THE EVALUATION, UM, COMMITTEE IS GONNA BE IMPORTANT.

UM, THEY, THEY DO HANDLE THESE KINDS OF ISSUES THROUGHOUT OUR CITY, AND I THINK WE, WE ALL NEED TO BE, REMI REMINDED THAT WE, THIS IS A RECENT PURCHASE OF A, OF A PRIVATELY OWNED BUILDING.

SO WE DO HOPE TO SEE, UH, SOME IMPROVEMENTS OVER SOME TIME.

UH, I ALSO SEE THAT WE HAVE ANA, UH, BRADSHAW, WHO'S HAS BEEN A, UH, UH, AN ASSISTANT TO US ON CITY COUNCIL, WHICH I THINK WILL ALSO BE VERY HELPFUL.

UM, AND, UH, AS WELL AS ALL THE OTHER MEMBERS AS WELL.

BUT REALLY, MY ONLY QUESTION IS, UH, AND I, AND I THINK I'M AGREEING WITH YOU THAT, YOU KNOW, HAVING KIND OF A QUESTION ABOUT, UH, MAINTENANCE AND REPAIR IS, IS CRITICAL, BUT I THINK IT'S COVERED IN THIS EVALUATION COMMITTEE.

MY ONLY QUESTION IS REALLY REGARDING, UH, CUSTODIAL SERVICES, UH, YOU KNOW, HOW, HOW ARE WE GONNA EVALUATE THAT? AND BECAUSE WE KNOW WE HAVE A LOT OF THAT FOR OUR CITY, AND, YOU KNOW, WE WANT TO, WE WANT US, IS IT GONNA BE SOMETHING THAT IS SIMILAR OR MATCHING TO THE WAY WE PAY OUR, OUR CUSTODIANS HERE IN, IN, IN THE CITY? SO YOU'RE, YOU'RE TALKING ABOUT EMPLOYEE WAGES? YEAH.

YEAH.

HOW ARE YOU, HOW ARE YOU GONNA EVALUATE, UH, THE, THE, THE PROPOSED PLANS AND ARE THE CUSTODIAL SERVICES GONNA BE COMPARABLE TO CITY, CITY PAY AS, AS FAR AS PAY? UM, MY UNDERSTANDING IS THAT WE'RE GOING TO GO OUT AND ASK FOR, WITH QUESTION, UH, WAGES AND BENEFITS AS PART OF THIS TO GIVE US INSIGHT INTO THE PAY OF THOSE PRIVATE FIRMS. UM, AND THEN WE CAN MAKE AN EVALUATION.

YES, SIR.

ONE OF THE THINGS THAT WE'LL BE DOING AS PART OF THIS PROPOSAL, WE'LL BE ASKING THEM TO ASK, WE WILL BE ASKING QUESTIONS OF THEM TO TELL US WHAT ARE THE WAGES AND SALARIES THAT YOU ARE PROPOSING TO PAY YOUR, YOUR PERSONNEL UNDER THIS ENGAGEMENT FOR CUSTODIAL, FOR EXAMPLE, NOT ONLY THE WAGES AND SALARIES, BUT THE BENEFITS THEY PROVIDE, AND ALSO IF THEY PROVIDE, UM, WHAT TYPES OF LEAVE THEY PROVIDE THEIR EMPLOYEES, THAT INFORMATION WILL BE PROVIDED TO THE EVALUATION COMMITTEE TO BE CONSIDERED AS PART OF THE PROPOSED PLAN.

WE WILL NOT, THERE

[01:10:01]

YEAH, AND I, I, I GUESS I'D, I'D LIKE TO SEE THAT BECAUSE, UH, MUCH LIKE, UH, MY COMMENTS EARLIER ABOUT TEMP SERVICES, YOU KNOW, THIS IS, WE WANNA MAKE SURE THAT WE'RE, WE'RE NOT SIMPLY OFFSETTING PAYS, UH, FOR FEES.

AND OF COURSE, MAKE SURE THAT THE PEOPLE, UH, WHO, WHO ARE, UH, PROVIDING CUSTODIAL SERVICES, OR AT LEAST THE EMPLOYEES ARE, ARE BEING, UH, PAID AN, UH, AN EQUITABLE PAY RANGE.

SO I, I HOPE YOU CAN MAKE, MAKE A, MAKE AN ACCOUNT FOR THAT BECAUSE, UH, I SEE THAT THIS IS THE PRIMARY, UH, COMPONENT TO THIS CONTRACT.

THANK YOU, CHAIR.

ANY OTHER QUESTIONS? SO, JUST TO COMMENT, I JUST WANT TO ECHO, UH, CHAIRMAN KURT'S PREVIOUS, UH, CONCERNS REGARDING, UH, BEING ABLE TO BE FLEXIBLE ON PEOPLE RESPONDING OR BUSINESSES RESPONDING TO THIS SOLICITATION.

I NOTICE ON ONE SLIDE THAT WE, AND THIS IS ON ALL THE SLIDES OF SOLICITATIONS.

WE HAVE A TARGETED VENDOR OUTREACH, AND IF WE START TO SEE, UM, THAT WE'RE NOT GETTING RESPONSES FROM AT LEAST OUR TARGETED VENDORS, THAT'S PROBABLY A TIME WHEN WE, UH, REGROUP AND DECIDE IF WE NEED TO CHANGE THESE TIMELINES AND DEADLINES.

ARE THERE ANY OTHER QUESTIONS OR CONCERNS FROM COMMITTEE MEMBERS? OKAY.

HEARING NONE, UH, THANK YOU FOR THE BRIEFING.

THE FINANCIAL VENDOR MASTER FILE ITEM NUMBER 16, AND, UH, COUNCILMAN, I'LL GO OVER THIS ONE.

UH, THAT GETS US THROUGH ITEM NUMBER 15.

NOW WE HAVE A FINAL AUDIT TO BE DISCUSSED, AUDIT OF

[16. 20-2474 AU19-013 Audit of Finance Vendor Master File]

UH, WE DID PERFORM AN AUDIT OF THE, UH, FINANCE DEPARTMENT, THE VENDOR MASTER FILE, WITH THE OBJECTIVE OF DETERMINING IF THE INTERNAL CONTROLS WERE IN PLACE TO MAKE SURE THAT, UH, THE VENDOR MASTER FILE DATA IS RELIABLE AND THE DISBURSEMENTS ARE ACCURATE.

AND WHEN WE TALK ABOUT THE VENDOR MASTER FILE, UH, FROM A FINANCE PERSPECTIVE, FROM THE ACCOUNTS PAYABLE AND US PAYING BILLS, OR JUST MAKING PAYMENTS, THAT IS A CRITICAL, CRITICAL FILE.

UH, ANY PAYMENT THAT IS MADE BY THE CITY, BE IT, UH, BY CHECK, BY WIRE, BY ANY OTHER TYPE OF FUNDS TRANSFERRED THE DATA THAT, UH, MANAGES OR, UH, REGARDING THAT PAYMENT IS, IS HOUSED IN THE VENDOR MASTER FILE.

UH, SO AGAIN, AN IMPORTANT PART OF THE, UH, THE ACCOUNTS PAYABLE PROCESS, JUST AS A REFERENCE, THERE'S ABOUT 28,000 ACTIVE VENDORS IN THAT, UH, IN THAT FILE.

UM, SO AGAIN, WE, WE LOOKED AT THAT FILE FROM THE PERSPECTIVE OF THE ACCURACY, RELIABILITY OF THE DATA, UH, THE DATA SUPPORTED, ALSO THE VENDOR DISBURSEMENT PROCESS, AND ALSO WHO HAS ACCESS TO THE FILE, THE USER ACCESS, UH, THROUGH THE SA THROUGH THE SS A P SYSTEM.

THE, UH, CONCLUSIONS THAT WE MADE FROM A, FROM ENSURING THAT NEW VENDORS, WHENEVER WE HAVE A NEW VENDOR AD AT THE PROCESSES AND CONTROLS, UH, TO SUPPORT THE PROPER DOCUMENTATION OF THOSE VENDORS WAS BEING HANDLED VERY WELL.

UH, THERE'S AN, A VERY GOOD PROCESS IN PLACE TO ACTIVELY BLOCK INACTIVE VENDORS.

UH, SOMETIMES THERE'S JUST A ONE TIME VENDOR OR VENDORS NOT BEING USED FOR, WE HAVEN'T DONE ANYTHING WITH THAT VENDOR FOR A YEAR OR SO.

WHAT'S TIME TO, TO INACTIVATE THAT VENDOR? BECAUSE, YOU KNOW, AND TO BE REACTIVATED, THERE'S A PROCESS THEY HAVE TO GO THROUGH.

IT'S JUST GOOD BUSINESS PRACTICE, UM, TO DO THAT.

UH, ONE AREA WHERE WE DID FIND, UH, SOME, SOME AREAS FOR IMPROVEMENT IS THAT THE CHANGE MANAGEMENT PROCESS, AND THIS IS THE, WHEN A VENDOR, WHEN VENDOR INFORMATION IS REQUIRED TO BE CHANGED, A VENDOR CHANGES ADDRESS, PHONE NUMBERS, BANK INFORMATION, ET CETERA, UH, WE FOUND THAT, UH, THE APPROVAL PROCESS AND THE SUPPORT DOCUMENTATION WASN'T ALWAYS WHERE IT SHOULD BE.

UH, REGARDING TO THOSE CHANGES OF VENDORS.

AND AGAIN, A CRITICAL, UH, PART OF THE PROCESS.

ANOTHER AREAS IS THE FILE MAINTENANCE.

WE DID A TON OF DATA ANALYSIS ON THIS, UH, FILE, JUST LOOKING FOR DUPLICATE INFORMATION, UH, MISSING INFORMATION.

AND WE DID IDENTIFY SOME AREAS WHERE THERE WERE DUPLICATE VENDOR RECORDS OF THE, THE RELATIONSHIP BETWEEN TYPES OF VENDORS WASN'T ALWAYS, UH, AS EXPECTED AND NEEDED TO BE CORRECTED, UH, ALONG THOSE LINES, AGAIN, WITH THE, UH, FOCUS OF JUST KEEPING THE DATA ACCURATE AND DATA INTEGRITY ISSUES.

AND THEN WE ALSO FOUND, UH, AN AREA WHERE USER ACCESS, THERE WAS SOME EXCESSIVE, UH, REALLY FIVE PEOPLE, UH, WHO HAD ACCESS TO THIS, UH, DATABASE THAT SHOULD NOT HAVE.

UH, AND SO THAT IS READ, THAT WAS CORRECTED DURING THE AUDIT.

WHENEVER WE FIND SOMEBODY WITH USE EXCESSIVE ACCESS, ESPECIALLY TO A CRITICAL FALL LIKE THAT, WE ALWAYS GO BACK TO DETERMINE IF THEY USE THAT ACCESS.

AND IN THIS CASE, THEY DID NOT.

SO AGAIN, IT'S JUST THE HOUSEKEEPING, CLEAN UP THE PROCESS SO THAT THEY DO NOT HAVE ACCESS, UH, TO THE, UM, TO THE INFORMATION TO MAKE THESE CHANGES.

AGAIN, UH, FINANCE AGREED WITH OUR RECOMMENDATIONS.

THEY HAVE TAKEN CORRECTIVE ACTION.

UH, SOME OF THEM ALREADY BEEN ADDRESSED, AND THE OTHERS THEY'RE WORKING THROUGH THE PROCESSES TO, UH, TO ADDRESS THESE ISSUES.

AGAIN, TO MAKE THE, THE VENDOR MASTER FILE AS TIGHT AS WE CAN,

[01:15:01]

UH, FROM A DATA PERSPECTIVE.

SO AVAIL FOR ANY QUESTIONS.

AND THEN TROY IS ALSO HERE.

ANY QUESTIONS Y'ALL MAY HAVE OF HIM? YOU KNOW, I, I NOTICED, YOU KNOW, THERE'S 80 SOMETHING THOUSAND VENDORS THAT WE'VE DONE BUSINESS WITH OVER THE YEARS, AND A LOT OF THOSE HAVE NOW BEEN BLOCKED BECAUSE WE'RE NO LONGER DOING ANY VEN ANY BUSINESS WITH THEM.

BUT I WAS SURPRISED AT THE NUMBERS OF, UH, OF VENDORS WHERE WE DIDN'T HAVE THE, UH, MOST UPDATED INFORMATION OR ADEQUATE INFORMATION, THINGS LIKE THAT.

SO, UH, YOU KNOW, THEY'RE IN THE HUNDREDS AND, UM, YOU ASSUME THAT THOSE ARE GONNA BE CLEANED UP.

AND ARE YOU GONNA GO BACK AND REVISIT THIS WITHIN MAYBE A REASONABLE PERIOD, SIX MONTHS TO GET THIS CLEANED UP? YES, SIR.

SIX TO NINE MONTHS.

I THINK THEIR TARGET DATE IS SEPTEMBER OF THIS YEAR TO HAVE ALL THESE ISSUES RESOLVED.

SO WAIT FOR THAT TO HAPPEN AND THEN A FEW MONTHS AFTER, SO IT HAS TIME TO RUN.

ALSO, JUST AS A MATTER OF PRACTICE WITHIN THE AUDIT DEPARTMENT, VENDOR MASTER FILE, THIS IS ONE OF THOSE, UH, BECAUSE OF THE CRITICAL NATURE OF THIS FILE, THIS IS AN AUDIT THAT WE WILL REPEAT PROBABLY ABOUT EVERY THREE YEARS.

YOU KNOW, WE'LL DO A FOLLOW UP ON THIS ONE, BUT THREE YEARS WE'RE GONNA BE BACK.

UH, THERE'S A FEW AUDITS OR SEVERAL AUDITS ACTUALLY, WHERE WE DO THAT TYPE OF, UH, ROTATION AGAIN, BECAUSE OF THE CRITICAL NATURE OF, OF THE TOPIC.

COUNCILWOMAN, YOU HAVE A QUESTION? UHHUH, .

THANK YOU, CHAIR.

ANY QUESTION? UH, YES, KEVIN, AT WHAT POINT ARE THE VENDORS DEACTIVATED? I DON'T TYPICALLY, AFTER WE REVIEW THE VENDOR FILE ON A ROUTINE BASIS, AND IF THERE HASN'T BEEN ANY ACTIVITY FOR ABOUT A YEAR OR MORE, THEN WE'LL DEACTIVATE THEM.

UM, THERE MAY BE A NUMBER OF REASONS WHY THEY MAY BE DEACTIVATED.

EITHER A CONTRACT HAS EXPIRED, UM, THEY'VE GONE OUT OF BUSINESS, BUT TYPICALLY WE LOOK FOR ABOUT A YEAR BEFORE WE ACTUALLY MOVE FORWARD AND DEACTIVATE THEM.

UM, BUT WE STILL KEEP IN LINE WITH THE WHOLE RECORDS, RENT, UH, RETENTION STANDARDS AND YEAH, THESE, THESE, AND YOU'LL SEE THE NUMBER OF BLOCKED BECAUSE THEY NEVER REALLY GET PURGED FROM THE SYSTEM BECAUSE THERE IS DATA AND HISTORY ATTACHED TO THEM.

AND WE KEEP THAT ALL ELECTRONICALLY IN THE SYSTEM.

SO YOU WILL NEVER SEE THESE, UM, VENDORS BEING ELIMINATED.

SO THEY'RE, THERE ARE MORE THAN THE, THE AMOUNT OF TIME REQUIRED BY RECORD RETENTION.

MEMBER SOTO, DO YOU HAVE A QUESTION? YES.

UM, I KNOW THIS PROCESS WAS DONE TO ENSURE THAT THE VENDOR FILE IS RELIABLE AND ACCURATE.

DID YOU ALL TAKE A DEEPER DIVE JUST TO DO SOME SORT OF C F E TYPE, UH, TEST TO MAKE SURE THAT VENDORS DIDN'T HAVE, THERE WEREN'T MULTIPLE VENDORS WITH THE SAME ADDRESS OR MULTIPLE VENDORS WITH THE SAME E A N OR THOSE TYPE TESTS? YES.

UH, MANY OF THOSE TYPES OF TESTS, AGAIN, LOOKING AT ADDRESSES.

ALSO WE COMPARE VENDOR ADDRESSES TO EMPLOYEE ADDRESSES, UH, FOR THAT TYPE OF STUFF.

WITH THE, WITH THE, UH, THE FRAUD RISK ASSESSMENT WE DO FOR EVERY AUDIT.

SO FROM A FRAUD PERSPECTIVE, UH, DUPLICATE PAYMENTS IS SOMETHING ELSE WE LOOK AT.

UH, SO TO ANSWER YOUR QUESTION, YES, WE DO LOOK AT THE FRAUD ASPECTS OF, OR THE FRAUD POTENTIAL.

AND I, AND I WOULD JUST ADD THAT, UM, THIS IS SOMETHING WE APPRECIATE 'CAUSE AS KEVIN SAID, THIS IS SOMETHING THAT'S HIGH RISK AND WE WANT THE VISIBILITY OF THE FILE IN ADDITION TO KEVIN, LOOK AT IT.

GRANT THORNTON DIDN'T TALK ABOUT IT TODAY, BUT THEY HAVE A THIRD PARTY THEY BRING IN FROM A FORENSIC STANDPOINT AND THEY DO SOME VERY SIMILAR ANALYSIS ON THE VENDOR FILE AS WELL, SPECIFIC TO WHAT HE WAS JUST TALKING ABOUT.

ANY OTHER QUESTIONS FROM THE COMMITTEE? IF NOT, I'LL ENTERTAIN A MOTION TO ACCEPT THE AUDIT.

I HAVE MOTION AND A SECOND.

ANY OPPOSED? HEARING NONE.

THE AUDIT'S ACCEPTED.

UM, AND CHAIR, IN THE INTEREST OF TIME, UH, WE PULLED ITEM 17 OFF THE AGENDA.

IT'S NOT A TIME SENSITIVE ITEM, BUT IS ONE JUST BECAUSE IT'S IT SECURITY RELATED, IT WOULD BE AN EXECUTIVE SESSION ITEM, WE THOUGHT JUST AN INTEREST OF TIME.

WE WOULD POSTPONE THAT FOR A FUTURE MEETING.