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AFTERNOON.[00:11:30]
WELCOME TO THE CITY COUNCIL B SESSION OF FEBRUARY 28TH, 2018.COUNCIL MEMBER VINNO, COUNCIL MEMBER SHAW COUNCIL MEMBER VRAN HERE.
COUNCIL MEMBER BROCK HOUSE COUNCIL MEMBER SANDOVAL.
COUNCIL MEMBER COURAGE PRESENT.
AND THANK YOU EVERYONE FOR BEING HERE TODAY.
TIME IS TWO 12, UH, FOR OUR CITY COUNCIL B SESSION AGENDA.
[1. Briefing on the City's Procurement Programs. [Ben Gorzell, Chief Financial Officer]]
WE HAVE ONE ITEM TODAY TO DISCUSS, WHICH IS THE CITY OF SAN ANTONIO PROCUREMENT PREFERENCE PROGRAMS. I'LL TURN IT OVER TO CHERYL SKEL.THANK YOU MAYOR, AND GOOD AFTERNOON COUNCIL MEMBERS.
UH, TODAY WE'RE PRESENTING AN OVERVIEW OF THE CITY'S PROCUREMENT PROCESS AND PREFERENCE PROGRAMS. AND WE'RE DOING THIS IN TWO PARTS.
IT'S A TWO PART, UH, DISCUSSION.
WE THOUGHT WE'D HAVE THAT FIRST PART TODAY AND THEN, UH, WE'RE PREPARED TO COME BACK NEXT WEEK IF THE COUNCIL IS INTERESTED IN THAT WITH, UH, SOME FURTHER RECOMMENDATIONS AT THE B SESSION.
IT'S A COMPLICATED SUBJECT MATTER.
THERE'S A LOT OF HISTORY AND DETAIL INVOLVED IN THIS CONVERSATION, SO WE THOUGHT WE'D PROVIDE THE FRAMEWORK FOR THAT DISCUSSION AND THE CONTEXT ON THE POLICY MATTER AND THEN PRESENT RECOMMENDATIONS IN A FOLLOW-UP MEETING.
UM, I'LL SHARE WITH YOU THAT DURING MY CITY MANAGEMENT CAREER, I'VE WORKED ON AND HAVE SEEN THE EVOLUTION OF POLICIES THAT HELP LOCAL BUSINESS VETERAN-OWNED BUSINESSES, SMALL, MINORITY, AND WOMEN-OWNED BUSINESSES ON CITY CONTRACTS.
IT CAN BE A COMPLICATED AREA AND EACH OF OUR PROGRAMS MUST ADHERE TO THE LEGAL REQUIREMENTS THAT HAVE BEEN ESTABLISHED OVER TIME, BOTH AT, UH, THE STATE AND LOCAL LEVEL.
FOR EXAMPLE, UH, WHEN DEVELOPING THE S BETA PROGRAM OR SMALL BUSINESS ENTERPRISE AND DISADVANTAGED BUSINESS PROGRAM, UH, THE CITY RELIED HEAVILY ON THE 1989 SUPREME COURT DECISION CASE, THE CITY OF RICHMOND VERSUS JA CROWSON.
AND THAT CASE INVOLVES THE LEGAL FRAMEWORK ON HOW TO IMPLEMENT C BETA LIKE PROGRAMS, ALSO KNOWN AS AFFIRMATIVE ACTION PROGRAMS. UH, THERE HAVE BEEN VARIOUS OTHER CASES, BUT CROSON, THE CROSON DECISION DICTATES THAT WE NEED STATISTICAL EVIDENCE TO PROVE DISPARITY EXISTS AND THAT THE PROGRAM HAS TO BE NARROWLY TAILORED TO ADDRESS THE DISPARITY.
SO WE'VE HAD, UH, A COUPLE OF DIFFERENT DISPARITY STUDIES WITH THAT STATISTICAL INFORMATION PROVIDED, UH, FOR THE CITY OF SAN ANTONIO.
UM, OVER THE PAST YEARS FOR PROGRAMS LIKE OUR LOCAL PREFERENCE PROGRAM, THERE ARE STATE STATUTE REQUIREMENTS THAT ESTABLISH PARAMETERS FOR THE PROGRAM.
GIVEN THE COMPLEXITY AND THE NUMBER OF PROGRAMS WE HAVE IN PLACE, WE'LL BE PROVIDING OUR BRIEFINGS, AS I SAID IN TWO PARTS TODAY.
THE FIRST PART WILL FOCUS ON PROVIDING BACKGROUND INFORMATION, CONTEXT, AND ORIENTATION TO GAIN A BETTER UNDERSTANDING OF THE CITY'S PROCUREMENT PREFERENCE PROGRAMS, HOW STATE STATUTE OR CASE LAW APPLIES TO THEM, AND THE PROCESSES IN WHICH THEY ARE APPLIED TO CITY CONTRACTS.
AND WE HAVE A VARIETY OF WAYS THAT WE PROCURE THE BUSINESS THAT WE NEED TO PROVIDE SERVICES TO OUR RESIDENTS.
WE BELIEVE THIS WILL HELP FACILITATE YOUR CONVERSATION AND
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DISCUSSION ON THE POLICY ISSUES RELATED TO THE PROGRAMS. WE HAVE THAT POLICY DISCUSSION SCHEDULED FOR NEXT WEEK'S B SESSION ON MARCH 7TH, AND WE'LL PRESENT SEVERAL RECOMMENDATIONS DURING THAT MEETING.AND OF COURSE TODAY CAN TALK ABOUT WHETHER OR NOT YOU WOULD LIKE MORE TIME BETWEEN THIS MEETING AND THE ACTUAL RECOMMENDATIONS OR IF YOU'D LIKE FOR US TO PROCEED NEXT WEEK.
SO TODAY, UH, TROY ELLIOTT, OUR DEPUTY CHIEF FINANCIAL OFFICER, AND RENEE DOMINGUEZ, OUR ECONOMIC DEVELOPMENT DIRECTOR, WILL PROVIDE MORE DETAILS ON THE FOLLOWING PROGRAMS. FIRST, LOCAL PREFERENCE.
SECONDLY, VETERAN OWNED SMALL BUSINESS PREFERENCE, THIRD SMALL BUSINESS ECONOMIC DEVELOPMENT ADVOCACY PROGRAM, AND THIRD HIGH PROFILE CONTRACTS PROCESS AS A $2.7 BILLION ANNUAL OPERATING IN CAPITAL BUDGET CORPORATION.
THERE ARE MANY CONTRACTS THAT ARE PROCURED FOR THE CITY EACH AND EVERY DAY BECAUSE THE COUNCIL WILL BE CONSIDERING PROCUREMENT PRACTICES AS A WHOLE.
UH, TODAY I'D LIKE TO RECOMMEND THAT THE REQUIREMENT FOR THE INCLUSION OF A LABOR PEACE AGREEMENT IN THE AIRPORT CONCESSIONS R F P BE REMOVED AT THIS TIME, AND THAT WE ISSUE AN ADDENDUM TO THAT R F P AFTER THIS MEETING TO THAT EFFECT.
AND I MAKE THAT RECOMMENDATION TO YOU AFTER CONSULTATION WITH THE MAYOR AND A FEW OTHER COUNCIL MEMBERS WHO ARE ASKING US TO TAKE A ANOTHER LOOK AT THAT AND CONDUCT A MORE PUBLIC CONVERSATION ABOUT THAT AT THE COUNCIL LEVEL AND PERHAPS, UH, WITH THE COMMUNITY.
I FURTHER RECOMMEND THAT THE CITY COUNCIL HAVE THAT PUBLIC POLICY DISCUSSION ABOUT HOW TO PROCEED WITH LABOR PEACE AGREEMENTS AS WELL AS OUR ENTIRE, UH, PROCUREMENT PROCESS AS A WHOLE.
AND THAT, UH, WE DO THAT IN THIS MEETING IN A FUTURE MEETING WHEN WE MAKE SOME OTHER RECOMMENDATIONS ON PROCUREMENT CHANGES BASED ON INPUT WE RECEIVE FROM THE CITY COUNCIL TODAY AND AT THE FUTURE MEETINGS.
SO WITH THAT, UM, I'D LIKE TO TURN IT OVER TO TROY ELLIOTT, WHO WILL BEGIN THE CONVERSATION.
HE'LL BE FOLLOWED BY RENEE DOMINGUEZ.
AND THEN, UH, WE ALL ARE HERE AND AVAILABLE TO DISCUSS WITH YOU AND ANSWER QUESTIONS ABOUT OUR CITY PROCUREMENT.
AS CHERYL MENTIONED, TODAY'S PRESENTATION IS GONNA BE THE FIRST OF TWO PARTS.
UH, I'D LIKE TO START WITH AN OVERVIEW, A HIGH LEVEL OVERVIEW OF OUR PROCUREMENT PROGRAMS, TALKING ABOUT WHERE THEY'RE APPLICABLE, THE SOLUTION TYPES, SOLICITATION TYPES THAT WE USE, AND GIVE YOU SOME BACKGROUND AS FAR AS THE VOLUMES AND QUANTITIES THAT WE ISSUE ON AN ANNUAL BASIS.
AS CHERYL MENTIONED, RENEE AND I THEN KIND OF TAG TEAM ON THE LOCAL PREFERENCE, BETTER KNOWN SMALL BUSINESS PREFERENCE PROGRAMS IN
I'VE BEEN WITH THE CITY OVER 20 YEARS AND STARTED OFF IN THE FINANCE DEPARTMENT AND WORKED WITH THE PURCHASING DEPARTMENT ON SEVERAL OCCASIONS TO BASICALLY BUY SOMETHING TO PROCURE SOMETHING.
ON OCTOBER 1ST, 2011, I WAS PROMOTED TO THE FINANCE DIRECTOR AND THE PURCHASING DEPARTMENT WAS CONSOLIDATED WITH FINANCE.
OVER THOSE YEARS, I NEVER REALLY KNEW HOW DIFFICULT IT WAS OR HOW COMPLEX IT WAS TO BUY SOMETHING.
IT'S NOT AS SIMPLE AS TAKING A COUPLE OF BIDS, AWARDING THOSE AND BUYING, GOING OUT AND BUYING SOMETHING.
THE MUNICIPAL ENVIRONMENT'S VERY COMPLEX.
ON THIS SLIDE, I'D LIKE TO KIND OF SHOW YOU KIND OF ALL THE GOVERNING LAWS AND HOW COMPLEX THAT PROCUREMENT ACTUALLY IS.
THERE'S SEVERAL LEVELS OF GOVERNMENTS.
WE HAVE STATE STATUTES, WE HAVE SUPREME COURT DECISIONS WITH THE CROWS DECISION, AND WE HAVE LOCAL CITY ORDINANCES.
AND THIS IS AT A MINIMUM, AT A HIGH LEVEL, STARTING ON THE LEFT WITH STATE STATUTES.
WE START WITH TEXAS LOCAL GOVERNMENT CODE CHAPTER 2 52.
THAT STATUTE SPECIFICALLY TALKS ABOUT AND PROVIDES US GUIDANCE WITH OUR LOW BID PROCUREMENTS.
IT TELLS US WHAT WE CAN BUY AND HOW WE CAN BUY IT, AND REALLY PRICE ALONG DETERMINES, UM, WHO WE CAN AWARD THAT BID TO.
THE NEXT 1, 22 54 BASICALLY GOVERNS PROFESSIONAL SERVICES.
WHEN WE TALK ABOUT PROFESSIONAL SERVICES, THIS SPECIFICALLY GOVERNS OUR AUDIT SERVICES, ARCHITECTS AND ENGINEERS AND THOSE TYPE OF CONTRACTS.
AND THE LAST 1, 22 69, IS GONNA COVER OUR ALTERNATIVE ALTERNATIVE DELIVERY METHODS SUCH AS, UM, BID DESI, UH, DESIGN BID BUILD, THE SUPREME COURT DECISION, AND RENEE'S GONNA GO INTO THE A LOT MORE DETAIL.
THIS, THIS IS REALLY THE FOUNDATION, THE CROWSON DECISION FOR THE ETT PROGRAM THAT WE OPERATE TODAY.
AND THEN YOU HAVE OUR CITY ORDINANCES, WHICH REALLY MEMORIALIZE STATE STATUTE, BUT ALSO EXPAND ABOVE AND BEYOND STATE STATUTES FOR OUR LOCAL PREFERENCE PROGRAM.
OUR VETERAN-OWNED SMALL BUSINESS PREFERENCE PROGRAM IN SUB BETA.
WHAT WE CAN DO ON THEIR DISCRETIONARY SIDE, PUT IN PLACE A WHOLE PROGRAM IN THIS IS JUST AT A HIGH LEVEL THOSE STATUTES AND GUIDANCE THAT WE USE IN PROCUREMENT.
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ORDINANCES, OUR AG OPINIONS AND OTHER THINGS THAT WE APPLY ON A DAILY BASIS TO OUR PROCUREMENTS.RESPONSIBILITY FOR PROCUREMENT, CHIEFLY RELY WITH TWO DIFFERENT DEPARTMENTS.
YOU HAVE THE FINANCE DEPARTMENT, WHICH I OVERSEE, WHICH IS RESPONSIBLE FOR THE PURCHASE OF GOODS, NON-PROFESSIONAL SERVICES SUCH AS JANITORIAL, LANDSCAPING, OUR PROFESSIONAL SERVICES AND REVENUE AND CONCESSIONS CONTRACTS.
YOU ALSO HAVE T C I THAT'S GONNA OVERSEE THE CONSTRUCTION, YOUR OTHER PROFESSIONAL SERVICES LIKE ARCHITECTURAL LANDSCAPE, ARCHITECTURAL ENGINEERING SERVICES, AND LAND SERVING.
AND I'D LIKE TO TAKE THE OPPORTUNITY TO INTRODUCE A PERSON WHO OVERSEES US ON A DAY-TO-DAY BASIS ON THE FINANCE SIDE.
AND THAT IS NORBERT DUKE WHO DOES THAT ON A DAY-TO-DAY BASIS AND IS, UM, OUR SUBJECT MATTER EXPERT DOES AN EXCELLENT JOB AT IT.
ALSO ON THE T C I SIDE, YOU HAVE KELSEY YOUNG, AND I THINK I SAW HER A LITTLE WHILE AGO, WHO DOES THE SAME THING FOR T C I.
WHEN IT COMES TO OUR PROCUREMENT PROGRAMS, YOU HAVE THREE DEPARTMENTS THAT ACTUALLY ADMINISTER OUR PROCUREMENT PROGRAMS ON A DAY-TO-DAY BASIS, TWO OF WHICH WE'RE GONNA COVER TODAY IN MORE DETAIL, THE THIRD OF WHICH IS THE AVIATION DEPARTMENT.
THE AVIATION DEPARTMENT COVERS OUR D B E PROGRAM, OUR DISADVANTAGED DISADVANTAGED BUSINESS ENTERPRISE PROGRAMS, AS WELL AS OUR AIRPORT CONCESSIONS, DISADVANTAGED BUSINESS ENTERPRISE PROGRAMS. AND THOSE ARE SPECIFIC TO THE FEDERAL PROGRAMS OUT AT THE AIRPORT.
THE FINANCE DEPARTMENT IS RESPONSIBLE FOR THE ADMINISTRATION OF THE LOCAL PREFERENCE PROGRAM AND THE VETERAN-OWNED SMALL BUSINESS PREFERENCE PROGRAM.
WHILE ECONOMIC DEVELOPMENT OR THE SMALL BUSINESS OFFICE IS FOCUSED ON THE SUB BETA PROGRAM AT FIRST BLUSH, WE CAN'T JUST RELY ON OUR PROGRAMS TO ACTUALLY INCENTIVIZE LOCAL PREFERENCE OR LOCAL PARTICIPATION OR SMALL BUSINESS PARTICIPATION.
IT REALLY TAKES THESE TWO DEPARTMENTS WORKING TOGETHER HAND IN HAND, AND NOT JUST APPLYING THESE PROGRAMS, BUT LOOKING AT IT STRATEGICALLY, WHAT TYPE OF PROCUREMENTS WE APPLY.
FOR EXAMPLE, THEB BUNDLING OF CONTRACTS.
YOU CAN OFFER LARGE CONTRACTS FOR JANITORIAL SUPPLIES AND YOU CAN SUPPLY THAT TO ONE, ONE, UM, VENDOR.
ON THE FLIP SIDE, YOU CAN UNBUNDLE THAT INTO SMALL, DIFFERENT, SMALLER BUNDLES AND GET MORE PARTICIPATION FROM SMALL AND LOCAL VENDORS AND ACTUALLY GET BETTER PRICE POINTS.
WE ALSO DO THAT WITH STRATEGIC USE OF OUR COOPERATIVES.
WE HAVE THE OPPORTUNITY TO USE COOPERATIVES THAT ARE COMPETITIVELY BID AND GO DIRECTLY TO THEM.
THE CHALLENGE IS BY USING THOSE COOPERATIVES, IT DOESN'T ALLOW US TO PROVIDE ANY OF THE PREFERENCE PROGRAMS THAT HAVE BEEN IDENTIFIED BY COUNCIL.
SO BY STRATEGICALLY USING THOSE COOPERATIVES AND REDUCING THE USE ON THOSE JUST FOR THINGS LIKE FIRE TRUCKS AND AMBULANCES, THEN WE CAN ACTUALLY INCENTIVIZE, UM, MORE LOCAL PARTICIPATION AND SMALL BUSINESS PARTICIPATION.
REAL QUICKLY, THE PURPOSE FOR EACH OF THESE PROGRAMS, EACH HAS A VERY DISTINCT, UH, PURPOSE.
LOCAL PREFERENCE, OF COURSE, IS PROMOTE TAX DOLLARS AND KEEP THOSE PROPERTY TAXES AND SALES TAXES HERE LOCALLY.
UM, IN THE CITY OF SAN ANTONIO, OUR VETERAN-OWNED SMALL BUSINESS PREFERENCE PROGRAM PROMOTES THE VETERAN PARTICIPATION ON OUR, OUR DISCRETIONARY SOLICITATIONS.
THE SMALL BUSINESS ECONOMIC DEVELOPMENT DEVELOPMENT ADVOCACY PROGRAM PROMOTES USE OF SMALL MINORITY BUSINESSES.
AND THEN TALKING ABOUT OUR HIGH PROFILE CONTRACTING PROCESS THAT REALLY PROMOTES TRANSPARENCY AND ALLOWS CITY COUNCIL TO HAVE POLICY INPUT INTO THE HIGH PROFILE CONTRACTING PROCESS.
THERE'S ESSENTIALLY TWO TYPES OF PROCUREMENTS.
WE HAVE NON-DISCRETIONARY AND WE HAVE DISCRETIONARY.
NON-DISCRETIONARY IS GONNA BE PRIMARILY YOUR STATUTE DRIVEN PROCUREMENTS.
THEY'RE GONNA BE LOW BID, OUR SOLICITATION TYPES ARE GONNA BE REQUESTS FOR PRICE QUOTE, WHICH ARE A ONE-TIME PURCHASES UNDER 50,000.
YOU HAVE IMITATIONS FOR BIDS AND REQUESTS FOR OFFERS, AND THEY CAN BE USED FOR A VARIETY OF THINGS FROM GOODS NON-PROFESSIONAL SERVICES TO PROFESSIONAL SERVICES.
AND YOU CAN SEE EXAMPLES DOWN BELOW.
AN EXAMPLE OF LOW BID, YOU'LL SEE THESE IN YOUR AGENDA PACKETS.
FOR A LOW BID NON-DISCRETIONARY, TRULY THAT'S GONNA BE LOW BID.
WE WILL PROVIDE YOU WITH A BID TAB.
IT'S GONNA HAVE THE QUANTITIES AND THE UNITS AND WHAT WE'RE BUYING, AND YOU'LL HAVE A COMPARISON OF THE PRICING THAT THE VENDORS SUPPLY.
IN THIS CASE, YOU CAN SEE BETWEEN A, A PROPOSAL OR A BID OF 11,550 AND 17,000.
NOW THE LO LOCAL PREFERENCE PROGRAM THAT WE'LL BE TALKING ABOUT IN A FEW MINUTES GIVES US THE OPPORTUNITY TO AWARD TO A LOCAL VENDOR WHO HAS A HIGHER PRICE POINT, AND WE'LL TALK ABOUT HOW THAT WORKS.
THE SECOND TYPE OF PROCUREMENT IS GONNA BE DISCRETIONARY, AND IT'S EXACTLY AS IT SOUNDS.
IT GIVES US THE DISCRETION TO BUY THINGS WHEN WE HAVE A CITY PROCESS DEFINED TO DO THAT.
IT UM, MAY OR MAY NOT BE GOVERNED BY STATUTE AND IT'S GONNA BE AWARDED BASED ON MULTIPLE CRITERIA SUCH AS EXPERIENCE, BACKGROUND OF QUALIFICATIONS, PROPOSED PLAN
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AND PRICE.AND THESE DISCRETIONARY SOLICITATIONS MAY OR MAY NOT, LIKE I SAID, HAVE LOCAL PREFERENCE, VETERANS' PREFERENCE OR SURVEY TO APPLIED TO THEM.
SOLICITATION TYPES TYPICALLY ARE GONNA BE IN THE FORM OF A REQUEST FOR A COMPETITIVE SEAL PROPOSAL, REQUEST FOR PROPOSALS AND REQUEST FOR QUALIFICATIONS.
AND THEY HAVE SIMILAR USES AS FAR AS GOODS, NON-PROFESSIONAL SERVICES, DEPENDING ON THE TYPE THAT YOU'RE BUYING.
I THINK EVERYBODY IS FAMILIAR WITH THE SCORING MATRIX.
I JUST WANTED TO SHOW IT HERE AS AN EXAMPLE.
UM, FROM A PROCESS STANDPOINT, WHENEVER WE HAVE AN EVALUATION, YOUR EVALUATION TEAM IS GONNA BE RESPONSIBLE FOR SCORING YOUR EXPERIENCE, BACKGROUND, AND QUALIFICATIONS, AND THE PROPOSED PLAN.
SO IN THIS EXAMPLE, THEY ARE RESPONSIBLE FOR 45 POINTS.
ONCE THEY HAVE CONDUCTED THEIR EVALUATION OF THE WRITTEN MATERIALS AND CONDUCTED THEIR EVALUATION OF THE INTERVIEWS, WE GO THROUGH AN EVALUATION AND THEY, THEY COMPLETE AND THEY ASSIGN SCORING TO EACH OF THE RESPONDENTS IN THIS CASE FIRM ONE AND FOUR TWO.
ONCE THEY HAVE COMPLETED THAT PROCESS, THEN WE, AND THEY HAVE ALL AGREED ON WHAT THEIR FINAL SCORES ARE, THE FINANCE DEPARTMENT, OUR T C I WILL DISCLOSE THE SCORING FOR THE PRICE.
THE SUB, THE SMALL BUSINESS OFFICE WILL DISCLOSE THE SCORING FOR THE C BETA CONTRACTS AND FINANCE WILL DISCLOSE LOCAL PREFERENCE AND BETTER KNOWN SMALL BUSINESS.
THE TAKEAWAY HERE IS THAT THE EVALUATION TEAM WILL, DOES NOT KNOW OR WILL KNOW WHAT THOSE OTHER SCORINGS ARE UNTIL THEY HAVE COM COMPLETED THEIR SCORING.
SO THEY CANNOT ALTER THEIR SCORES OR INFLUENCE THEIR SCORINGS IN THE EVENT THEY KNEW PRICE OR THE PREFERENCE PROGRAMS. TODAY THERE'S 35 POINTS THAT ARE ALLOCATED FOR OUR PREFERENCE PROGRAMS AND AS WE TALK ABOUT SOME OF OUR RECOMMENDATIONS NEXT WEEK, WE'LL BE TALKING ABOUT POTENTIALLY LIMITING THAT TO A SMALLER LEVEL, UM, OR PLACING A CAP ON THOSE PREFERENCE PROGRAMS. TO KIND OF GIVE YOU A SENSE OF HOW MUCH WE'RE IN SUPER PROCUREMENTS, OUR PROCUREMENT CONTRACTS, THESE ARE THE 2017 AWARDS AND I'LL FOCUS ON AWARDS BECAUSE THEY'RE JUST THAT IT'S NOT SPEND, IT'S AN AWARD.
AN AWARD MAY BE A CONTRACT FOR FIVE YEARS OR 10 YEARS, AND THAT WOULD BE INCLUDED IN THESE CONTRACT NUMBERS.
SO FOR EACH OF THE SOLICITATION METHODS ON THE LEFT, YOU'RE GONNA SEE THE NUMBER OF SOLICITATIONS OVER 50,000 THAT WE UM, THAT WE HAVE AWARDED OR ISSUED.
WE ISSUED A TOTAL OF 218 SOLICITATIONS FOR RESULTING IN 359 AWARDS FOR A TOTAL VALUE AWARDED FOR 17 OF 568 MILLION BELOW 50,000.
WE HAVE ABOUT 8,000 ADDITIONAL PURCHASE ORDERS THAT WE PROCESS ON A ROUTINE BASIS FOR ABOUT A VALUE OF 21 MILLION.
SO THAT KIND OF GIVES YOU A SENSE OF ANY ONE YEAR HOW MUCH IS RUNNING THROUGH PROCUREMENT FOR T C I AND FINANCE DEPARTMENT.
AS I MENTIONED EARLIER, THE INTENT OF THE LOCAL PREFERENCE PROGRAM IS TO BASICALLY INCENTIVIZE OR REWARD LOCAL COMPANIES, UM, FROM DOING BUSINESS IN SAN ANTONIO AND REWARDING THEM BY GIVING 'EM A PREFERENCE AND KEEPING THAT PROPERTY TAX AND THAT SALES TAX KEEP LOCALLY.
UM, AND ALSO PROMOTING THE RETENTION OF JOBS.
THE LOCAL PREFERENCE PROGRAM IS ADMINISTERED BY THE FINANCE DEPARTMENT.
AS I MENTIONED, IT WAS ADOPTED IN 2013 AND EFFECTIVE IN MAY OF 20 AND 13.
ALONG THE WAY WE LEARNED WE HAD, THERE WERE A LOT OF LESSONS LEARNED ABOUT THE PROGRAM AND WE ACTUALLY AMENDED THE PROGRAM TWICE DURING THE LAST SEVERAL YEARS.
WE BASICALLY, THERE WERE SOME ADMISSIONS IN THE CURRENT ORDINANCE, SO WE WENT BACK AND WE ADDED CONCESSION AND REVENUE CONTRACTS.
SO WE SHOULD ACTUALLY APPLY LOCAL PREFERENCE TO CONCESSIONS AND REVENUE CONTRACTS.
IT'S APPLICABLE ONLY TO FOR-PROFIT CITY BUSINESSES.
WE ALSO ADDED A REQUIREMENT THAT YOU MUST BE HEADQUARTERED IN SAN ANTONIO FOR A YEAR OR MORE.
WHEN WE WERE CONDUCTING SOME OF OUR PROCUREMENTS, WE NOTICED THAT THERE WAS AN OPPORTUNITY FOR A BUSINESS TO COME IN AND MAYBE GAIN THE SYSTEM.
THEY COULD MOVE INTO SAN ANTONIO LESS THAN A YEAR AND ACTUALLY GET AWARDED POINTS.
SO WE DID SOMETHING SIMILAR TO HOUSTON AND UH, DALLAS DID TO, WE ACTUALLY ADDED A REQUIREMENT IN THERE THAT YOU MUST BE LOCATED IN SAN ANTONIO FOR A YEAR OR MORE HEADQUARTERED TO ACTUALLY GET PREFERENCE POINTS.
WE ALSO EXPANDED THIS TO JOINT VENTURES.
ONE OF THE THINGS THAT WE NOTICED THAT FREQUENTLY FOR VERY LARGE CONTRACTS, YOU HAD SEVERAL COMPANIES JOINING A LEGAL JOINT VENTURE AND AS A NEW JOINT VENTURE, THEN THEY'RE NOT APPLICABLE, THEY'RE NOT, THEY'RE NOT ALLOWED TO RECEIVE POINTS UNDER THE PREFERENCE PROGRAM 'CAUSE THEY HAD BEEN HERE FOR LESS THAN A YEAR OR MORE.
I HAVE AN EXAMPLE OF THIS A LITTLE LATER IN THE PRESENTATION, BUT THIS ALLOWS THE BUSINESSES THAT MAKE UP THE JOINT VENTURE TO ACTUALLY GET POINTS BASED ON THE AMOUNT OF TIME THEY'VE BEEN IN SAN ANTONIO.
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OUR DEFINITION FOR PURPOSES OF LOCAL PREFERENCE IS A BUSINESS HEADQUARTERED FOR ONE YEAR OR MORE IN THE MUNICIPAL BOUNDARIES OF THE CITY OF SAN ANTONIO.YOU MUST OR YOU MUST MEET THE FOLLOWING CONDITIONS, HAVE AN ESTABLISHED PLACE OF BUSINESS FOR AT LEAST ONE YEAR IN THE INCORPORATED CITY LIMITS OF SAN ANTONIO.
FROM WHAT WE, AND FROM WHICH AT LEAST 20% OF ITS FULL-TIME, PART-TIME OR CONTRACT EMPLOYEES ARE BASED, ARE A MINIMUM OF A HUNDRED EMPLOYEES.
THE KEY TAKEAWAY HERE IS THE, THE INCORPORATED LIMITS OF THE CITY OF SAN ANTONIO.
WHEN WE FASHIONED OUR DEFINITION, WE FASHIONED IT AFTER WHAT'S ALLOWED BY STATUTE AND WE'RE GONNA HAVE A RECOMMENDATION, UM, OF WHERE WE WANNA EXPAND THIS AS FAR AS THE GEOGRAPHICAL LIMITS OF THE CITY OF SAN ANTONIO.
ANOTHER KEY THING THAT WE DID HERE IN OUR DEFINITION, WE ADDED A MINIMUM OF A HUNDRED EMPLOYEES 'CAUSE WE ALSO RECOGNIZE THAT THERE MAY BE BUSINESSES THAT MAY NOT BE HEADQUARTERED HERE, BUT THEY WILL HAVE A LARGE LOCAL PRESENCE.
AND SO WE WANTED TO GIVE THEM AN OPPORTUNITY TO, UM, RECEIVE A LOCAL PREFERENCE.
AND YOU'LL SEE THAT IN THE POINTS HERE IN A COUPLE OF MINUTES.
THIS IS REALLY A SUMMARY OF WHAT IS ALLOWED BY STATUTE FOR LOCAL PREFERENCE.
THIS IS GONNA BE PRIMARILY ON OUR NON-DISCRETIONARY OR LOW BID.
UM, THE LOCAL PREFERENCE BY STATUTE IS ALLOWED IN THREE AREAS AND THE STATUTE ACTUALLY ALLOWS US TO GRANT A PREFERENCE UP TO FIVE POINTS BETWEEN A LOCAL BID AND A NON-LOCAL BID.
FOR PURPOSES OF OUR ORDINANCE, WE CHOSE TO GO WITH 3% AS A PILOT PROGRAM.
UM, AND SO YOU'LL SEE THAT HERE FOR GOODS AND SUPPLIES, NON-PROFESSIONAL SERVICES AND CONSTRUCTION CONTRACTS FOR GOODS AND SUPPLIES.
THE STATUTE BASICALLY SAYS IN OUR PILOT PROGRAM SAYS IF A LOCAL BIDDER IS WITHIN 3% OF THE LOWEST NON-LOCAL BIDDER, THEN IT WOULD BE AWARDED TO THE LOCAL COMPANY.
WE APPLY THIS FOR CONTRACTS OVER 50,000 FOR NON-PROFESSIONAL SERVICES.
IF A LOCAL BIDDER IS WITHIN 3% OF THE LOWEST NON-LOCAL BIDDER FOR CONTRACTS BETWEEN 50 K AND 500,000.
AND THEN CONSTRUCT CONSTRUCTION CONTRACTS AS WELL.
IT'S APPLICABLE BETWEEN 50 AND A HUNDRED.
BUT WE TYPICALLY DON'T HAVE ANYTHING IN THAT ARENA, UH, 'CAUSE WE USE JOB ORDER CONTRACTING.
AN EXAMPLE OF THE KIND OF, UM, KIND OF HIGHLIGHT THAT, THERE'S TWO BIDS HERE IN THIS EXAMPLE OR TWO SCENARIOS.
YOU HAVE A BID ON THE TOP LINE WHERE A LOCAL BUSINESS HAS BID $1,100, A NON-LOCAL BUSINESS BID A THOUSAND.
THERE WAS A HUNDRED DOLLARS DIFFERENCE BETWEEN THE TWO BIDS REPRESENTING A 10% PRICE VARIANCE BASED ON THE STATUTE AND BASED ON OUR CURRENT CURRENT PROGRAM AS A GREATER THAN 3% VARIANCE.
SO WE WOULD NOT AWARD TO THE LOCAL BUSINESS THE LOWEST PRICE FOR THE NON-LOCAL WINDS.
ON THE SECOND SCENARIO, YOU HAVE A LOCAL BUSINESS THAT BID 1,530.
IT'S $30 HIGHER THAN THE NON-LOCAL BUSINESS, WHICH IS A VARIANCE OF 2%.
SO THE LOCAL BUSINESS IS $30 OR 2% HIGHER THAN THE NON-LOCAL BID.
BASED ON THE STATUTE AND BASED ON OUR ORDINANCE, WE COULD AND WOULD AWARD TO THE LOCAL BUSINESS IN THIS CASE AND WE WOULD PAY $30 MORE FOR, FOR THE PRODUCT.
JUST TO KIND OF GIVE YOU A SENSE ON OUR LOW BID, HOW MUCH WE SPEND PER YEAR.
AND PLEASE KEEP IN MIND AGAIN THAT THESE ARE AWARDS, THAT THIS IS KINDA THE LEVEL OF AWARDS THAT WE HAVE.
AND TAKEN FOR F Y 17, FOR EXAMPLE, AND APOLOGIZED FOR THE SIZE, BUT FY 17 WE HAD A TOTAL VALUE OF OUR CONTRACT AWARDS OF 171 MILLION.
OF THAT 36 MILLION WENT TO LOCAL BUSINESSES ON OUR LOW BID NON-DISCRETIONARY CONTRACTS, MEANING THAT THEY'RE HEADQUARTERED IN SAN ANTONIO FOR A YEAR OR MORE IN THEY'RE LOCAL OF THAT ABOUT 1.8 MILLION OR 1.9 MILLION WAS ACTUALLY THE RESULT OF FLIPPING THE BID AS A RESULT OF OUR PREFERENCE PRO PREFERENCE PROGRAM IN PLACE.
AND FLIPPING THE BID THAT ACTUALLY ONLY COST THE CITY ABOUT AN EXTRA $18,000.
SO IN EACH OF THOSE YEARS, YOU CAN KIND OF SEE A COMPARISON OF WHAT WE'RE PAYING TO LOCAL BIDDERS FOR A LOW BID OR PRICE IS THE DETERMINING FACTOR COMPARED TO OUR TOTAL CONTRACT AWARDS FOR A LOW BID.
WE DON'T HAVE A LOT OF INFLUENCE HERE, UM, BECAUSE PRICE DETERMINES THE AWARD WITH, WITH THE EXCEPTION OF THAT 3% VARIANCE.
BUT ALSO WHEN YOU LOOK AT OUR GOODS, WE'RE GONNA BE TALKING ABOUT A LOT OF GOODS LIKE FUEL AND SO THERE WON'T BE A LOT OF LOCAL PRODUCTS THAT ARE AVAILABLE IN THESE AREAS AS WELL.
AS FAR AS THE LOCAL PREFERENCE PROGRAM AND DISCRETIONARY,
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OUR PROGRAM ACTUALLY ALLOWS 10 POINTS FOR THOSE, UH, BUSINESSES HEADQUARTERED IN SAN ANTONIO FOR A YEAR OR MORE.AND FIVE POINTS FOR THE OTHER AREAS WHERE YOU MAY HAVE AT LEAST 20% OF YOUR FULL-TIME OR PART-TIME CONTRACT EMPLOYEES OR YOU HAVE THE MINIMUM OF THE 100 EMPLOYEES.
AND WE ALSO CAN APPORTION THOSE TO JOINT VENTURES.
PROVIDING A REAL QUICK EXAMPLE OF THE JOINT VENTURE AND A DISCRETIONARY CONTRACT WHERE YOU'RE GONNA HAVE LOCAL PREFERENCE.
IN THIS EXAMPLE, YOU HAVE THREE COMPANIES THAT ARE COM THAT ARE MAKING UP A JOINT VENTURE.
YOU HAVE TWO LOCAL COMPANIES AT A 40% OWNERSHIP, ONE AT A 50% OWNERSHIP, AND THEN YOU HAVE A NON-LOCAL COMPANY AT 10%.
SIMPLY WHAT WE DO IS THEY'RE ELIGIBLE FOR 10 POINTS UNDER THE PROGRAM.
THEY WOULD HAVE AN ALLOCATION OF THE FIRST COMPANY AT 40% OWNERSHIP TIMES A 10 POINTS FOR FOUR POINTS, 50% WOULD BE FIVE POINTS, AND THE NON-LOCAL WILL GET ZERO POINTS FOR A TOTAL OF NINE POINTS.
THAT WAY THE, SINCE THE NEW JOINT VENTURE IS A NEW COMPANY WILL NOT BE ALLOWABLE OR ELIGIBLE FOR PREFERENCE POINTS, THE UNDERLYING COMPANIES UNDER THE UMBRELLA THAT JOINT VENTURE WOULD BE ELIGIBLE FOR PREFERENCE POINTS.
A SIMILAR LOOK AT OUR DISCRETIONARY CONTRACTS, UM, UNDER OUR LOCAL PREFERENCE AWARDS IN F Y 17, WE HAD ABOUT $189,000 IN TOTAL VALUE OF CONTRACT AWARDS WHERE THE, THE, UM, LOCAL PREFERENCE WAS APPLICABLE, OF WHICH 146,000 OF THAT WAS ACTUALLY AWARDED TO LOCAL COMPANIES.
AND YOU CAN SEE ON OUR DISCRETIONARY CONTRACTS, THE VALUE OF THE LOCAL PARTICIPATION IS MUCH HIGHER THAN WE HAD ON THE, UM, ON THE LOW BID.
THIS IS A BUSY SLIDE, BUT I JUST WANTED TO SHOW IT FOR, FOR A COUPLE REASONS.
ONE ON THE LEFT YOU HAVE YOUR SOLICITATION TYPES AND ACROSS THE TOP THE FIRST THREE COLUMNS ARE GONNA REPRESENT OUR STATUTE DRIVEN PROCUREMENTS.
WE'RE A PROFESS THE LAST ONE IS GONNA BE YOUR PROFESSIONAL SERVICES OR R F P.
THE GREEN ACTUALLY SHOWS WHERE A PREFERENCE IS ACTUALLY ALLOWABLE.
SO FOR THE INVITATION FOR BID BY STATUTE, WE CAN DO IT IN ALL THREE OF THOSE AREAS FOR GOOD NON-PROFESSIONAL SERVICES, GOODS AND CONSTRUCTION SERVICES WHERE IF YOU LOOK AT REQUESTS FOR COMPETITIVE SEAL PROPOSALS, WHICH IS GONNA BE LIMITED BY STATUTE, WE'RE NOT ALLOWED TO APPLY LOCAL PREFERENCE.
SO EVERYWHERE YOU HAVE READ ON THIS, THIS IS WHERE WE ARE ACTUALLY LIMITED OUR ABILITY TO APPLY A LOCAL PREFERENCE.
SPECIFICALLY ON THE REQUEST FOR COMPETITIVE SEAL PROPOSALS.
THE COUNCIL, UH, HAD ASKED US THROUGH THE I D R TO GO TO THE LEGISLATURE AND PROPOSE CHANGES 'CAUSE THERE'S A HOLE IN OUR LOCAL PREFERENCE PROGRAM.
WE CAN APPLY IT ON LOW BID, WE CAN APPLY IT ON DISCRETIONARY, BUT WE COULDN'T APPLY IT IN THE MIDDLE FOR OUR REQUEST FOR COMPETITIVE SEAL PROPOSALS.
SO WE WENT FOR, WENT TO THE LEGISLATURE AND UM, IN THE 84TH LEGISLATIVE SESSION AND REPRESENTATIVE DIEGO BERNAL AND SENATOR JOSE MENENDEZ ACTUALLY SPONSORED A BILL FOR THE CITY OF SAN ANTONIO TO BASICALLY ALLOW LOCAL PREFERENCE.
IN THE INSTANCE WHERE WE'RE USING A REQUEST FOR A COMPETITIVE SEAL PROPOSAL TO KIND OF CLOSE THAT GAP, WE SUCCESSFULLY GOT IT PASSED AND THROUGH THE, THE HOUSE AND THE SENATE, BUT IT'S VETOED BY THE GOVERNOR ON JUNE 20TH.
AND SO WE HAD BEEN TO THE LEGISLATURE AND WE HAVE TRIED TO CLOSE THAT GAP AND, BUT WERE UNSUCCESSFUL, UM, AT THAT TIME.
AND THE RATIONALE FOR THAT LITERALLY WAS BECAUSE THE GOVERNOR'S RESPONSE WAS THAT THAT GOVERNMENT HAS AN OBLIGATION TO SPEND NO MORE OF THE TAX MONEY, TAXPAYER'S MONEY THAN IS, THAN IS NECESSARY THE VETERAN OWNED SMALL, UH, BUSINESS PROGRAM.
UM, IN ITS ESSENCE, IT'S TO PROMOTE VETERAN OWNED SMALL BUSINESSES AND DISCRETIONARY SOLICITATIONS.
THIS WAS ADOPTED BY COUNCIL, UM, DECEMBER 5TH, 2013, AND IT WAS EFFECTIVE JANUARY 15TH, 2014.
AND AGAIN, WE REVISED THIS ONE TIME TO ALLOW, TO ALLOW APPLICABILITY TO OUR JOINT VENTURES.
THE CERTIFICATION IS BY THE SMALL BUSINESS ADMINISTRATION.
UM, WE ALLOW UP TO FIVE POINTS FOR A VETERAN'S PREFERENCE AND ONE OF THE MAJOR DIFFERENTIATIONS ON THIS PROGRAM.
WHEN YOU COMPARE IT TO C BETA OR TO LOCAL, THERE IS NO GEOGRAPHIC PREFERENCE.
IF YOU ARE A VETERAN, UM, YOU'RE, YOU ARE APPLICABLE FOR THE PREFERENCE WHERE LOCAL IS LIMITED TO THE MUNICIPAL BOUNDARY AND S BETA WOULD BE LIMITED TO THE SAMHSA.
FOR PURPOSES OF OUR PROGRAM, A VETERAN OWNED SMALL BUSINESS IS DEFINED AS 51% OWNED BY A VETERAN, UH, CONTROLLED AND MANAGED BY AN HONORABLY DISCHARGED VETERAN OR VETERANS.
AND YOU MUST BE A US CITIZEN OR LEGAL RESIDENT.
AND FOR PURPOSES OF THIS, A VETERAN IS A PERSON WHO SERVED ACTIVE DUTY IN ONE OF THE FIVE BRANCHES, A RESERVIST OR MEMBER OF THE NATIONAL
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GUARD AND HONORABLY DISCHARGED.OUR PROGRAM DOES NOT RECOGNIZE SERVICE DISABLED VETERANS.
SIMILAR SIMILARLY TO THE SLIDE I SHOWED YOU BEFORE FOR OUR, UH, PROCUREMENT METHODS, THE INVITATION FOR BID REQUEST FOR REQUEST FOR COMPETITIVE SEAL PROPOSAL AND REQUEST FOR OFFERS.
BECAUSE THOSE ARE LARGELY LIMITED BY STATUTE, WE ARE UNABLE TO PROVIDE A VE VETERAN'S PREFERENCE PROGRAM.
HOWEVER, ON REQUEST FOR QUALIFICATIONS AND REQUESTS FOR PROPOSALS, WE CAN APPLY IT A MAJORITY OF THE TIME.
AND NOW I'LL TURN IT OVER TO AN TO TALK ABOUT THE SMALL BUSINESS PROGRAM.
ALRIGHT, GOOD AFTERNOON COUNSEL.
UH, FOR THIS PORTION OF THE PRESENTATION, I'M GONNA GO OVER THE SMALL BUSINESS ECONOMIC DEVELOPMENT ADVOCACY PROGRAM, BETTER KNOWN AS S BETA.
I'LL PROVIDE YOU AN OVERVIEW ON SORT OF THE MECHANICS BEHIND S BETA.
BEFORE I START THOUGH, I WOULD LIKE TO INTRODUCE, UH, MICHAEL SINDEN, THE ASSISTANT DIRECTOR OF OUR SMALL BUSINESS OFFICE.
HE'S PROBABLY THE FACE THAT YOU SEE MOST WHEN, UH, TALKING ABOUT ZE BETA ATTENDS ALL THE AUDIT COMMITTEES AND MICHAEL'S DONE A, A, A MASTERFUL JOB FOR US ON GENERATING SOME GREAT RESULTS.
IN ADDITION TO THAT, I'LL PRESENT TO YOU VERY, VERY BRIEFLY THE RESULTS FROM 2017 ON OUR UTILIZATION RATES.
UH, WE VERY RECENTLY PROVIDED YOU ALL THIS REPORT IN YOUR INBOXES THAT PROVIDED AN OVERVIEW OF OUR UTILIZATION RATES BROKEN DOWN BY GENDER AND ETHNICITY AND BY THE DIFFERENT INDUSTRIES WE TRACK.
AND WE RECENTLY PRESENTED THIS PAST JANUARY IN THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE BEFORE DISCUSSING, UM, HOUSE OF BETA, HOW THE BETA PROGRAM APPLIES TO CITY CONTRACTS.
I REALLY WANT TO GIVE YOU AN OVERVIEW OF THE LEGAL STANDARDS OF THE PROGRAM AND THE PURPOSE BEHIND, UH, S BETA.
AS CHERYL INDICATED EARLIER IN HER OPENING REMARKS, UH, WHEN DEVELOPING THE S BETA PROGRAM, THE CITY RELIED HEAVILY ON THE 1989 SUPREME COURT CASE, UH, RICHMOND V CROSON.
THIS, UH, CASE REALLY PROVIDED THE LEGAL FRAMEWORK ON HOW TO IMPLEMENT AND EXECUTE THESE TYPES OF AFFIRMATIVE ACTION, UH, PROCUREMENT PROGRAMS. IN ESTABLISHING, UH, A PROGRAM, EACH ENTITY WOULD HAVE TO STATISTICALLY PROVE THAT DISPARITY EXISTS IN THEIR AREA, BACK IT UP WITH ANECDOTAL EVIDENCE, AND HAVE A VERY NARROWLY TAILORED, UH, PROGRAM TO ADDRESS THIS DISPARITY.
AND THIS STATISTICAL EVIDENCE IS FRANKLY WHY EVERY FIVE YEARS WE HAVE A DISPARITY STUDY THAT LOOKS AT THAT FIVE YEAR SPEND AND DETERMINES OF, DETERMINES IF DISPARITY STILL EXISTS.
IN ADDITION TO THAT, UH, THE KEY PHRASE HERE AT THE VERY BOTTOM PORTION OF THIS SLIDE IS NARROWLY TAILORED.
UH, THAT'S THE PHRASE AND THE RATIONALE BEHIND MUCH OF THE COMPLEXITY OF S BETA.
THAT'S WHY WE HAVE CONTRACT BY CONTRACT REVIEW.
THAT'S WHY WE HAVE A DEFINED MARKET, UH, AREA THAT WE TRY TO ADDRESS A DISPARITY.
THAT'S WHY WE HAVE A CENTRAL VENDOR REGISTRATION PROGRAM.
TO PROVIDE A LITTLE BIT OF BACKGROUND ON THE EVOLUTION OF THE BETA PROGRAM, SINCE THE CITY INITIATED ITS FIRST STUDY BACK IN 1992, WE HAVE CONDUCTED TWO MORE STUDIES SINCE THEN.
AS I MENTIONED, ONE OF THEM IN 2010 AND ONE OF THEM IN 2015, THIS DISPARITY STUDY IN 2010, UH, INDICATED THAT AROUND 16% OF OUR CONTRACT DOLLARS WERE PAID TO LOCAL SMALL, MINORITY WOMEN-OWNED BUSINESSES, WHICH REALLY DEMONSTRATED AN IMPROVEMENT FROM 1992, BUT OBVIOUSLY STILL NOT ACHIEVING THE GOALS THAT WE WANTED TO ACHIEVE IN THE PROGRAM.
THE 2010 STUDY REALLY LED TO AN INTENSIVE REVIEW OF THE PROGRAM AND A MAJOR OVERHAUL OF THE PROGRAM AS A RESULT OF THIS OVERHAUL.
AND AS A MATTER OF FACT, IT'S ONE OF THE PRIMARY REASONS THAT I CAME TO THE CITY.
IT WAS THE FIRST PROGRAM THAT CHERYL WANTED ME TO, TO LOOK AT AND TO OVERHAUL.
BUT THIS WAS, UH, THE OVERHAUL THAT THAT GAVE US SUCH A ROBUST PROGRAM WHERE WE CREATED A REGISTRATION SYSTEM SO WE COULD VERIFY AVAILABILITY, WHERE WE IMPLEMENTED THE COMPLIANCE MODULE THAT REALLY MADE FIRMS USE THE PEOPLE THAT THEY SAY THEY WERE GONNA USE IN EACH OF THESE CONTRACTS.
IT ALSO GAVE US, UH, CAPACITY BUILDING PROGRAMS LIKE THE MENTOR PROTEGE PROGRAM BECAUSE WE JUST DON'T WANT TO PROVIDE CONTRACTS TO SMALL BUSINESSES.
WE ALSO WANT THEM TO GROW AND SUCCEED.
SO PART OF OUR PROGRAM INCLUDES CAPACITY BUILDING PROGRAMS THAT, UH, NEXT DISPARITIES THE STUDY IN 2015, JUST TWO YEARS AGO, INDICATED THAT 23%
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OF OUR CONTRACTING DOLLARS WENT TO SMALL MINORITY AND WOMEN-OWNED BUSINESSES.SO YOU CAN SEE THAT WE WERE MAKING PROGRESS 16% AND 23% A MAJOR OVERHAUL WAS NOT RECOMMENDED AT THAT TIME.
WHAT INSTEAD WAS RECOMMENDED WAS CHANGING SOME OF THE TOOLS TO ADDRESS NEW FINDINGS, PRIMARILY THAT PRIME CONTRACTORS WEREN'T GETTING THEIR FAIR SHARE OF CONTRACTS AT THE, UH, AT THE LEVEL THAT THEY SHOULD.
SO ONE OF THE ENHANCEMENTS WAS NEW TOOLS TO ENCOURAGE PRIME CONTRACTOR PARTICIPATION IN CONTRACTS.
SO NOW, EXCUSE ME, LET'S TALK A LITTLE BIT ABOUT THE MECHANICS OF S BETA.
THE S BETA PROGRAM APPLIES TO ALMOST ALL C CITY CITATIONS, OVER 50,000.
IT APPLIES TO A WIDE RANGE OF SERVICES AND PRODUCTS SUCH AS CONSULTING SERVICES, ROAD CONSTRUCTIONS, LIBRARY CONSTRUCTION, RENOVATIONS.
NO, WE DO NOT BUY DOGS AND CATS, BUT WHAT WE DO BUY IS VACCINATIONS AND PET FOOD.
SO THIS SLIDE IS MEANT TO INDICATE THE WIDE VARIETY OF THINGS THAT THE CITY BUYS AND THE FACT THAT SUB BETA, UH, HAS TOOLS TO ADDRESS ALL OF THOSE DIFFERENT SOLICITATIONS.
THERE ARE OTHER TYPES OF AGREEMENTS THAT THE SUB BETA PROGRAM APPLIES TO, LIKE FUNDING AGREEMENTS.
FOR EXAMPLE, IF WE PROVIDE CONSTRUCTION MONEY TO THE PORT, THEN SUB BETA CAN APPLY TO THE CITY PORTIONS OF THOSE OF THOSE FUNDS TO BE ELIGIBLE FOR THE C BETA PROGRAM, A FIRM MUST BE CERTIFIED AS A SMALL BUSINESS WITH THE SOUTH CENTRAL TEXAS REGISTRATION, UH, AGENCY CERTIFICATION AGENCY RATHER, A LOT OF PUBLIC AGENCIES USE THIS THIRD PARTY TO CERTIFY C P SS THE COUNTY VIA A LOT OF THE SCHOOL DISTRICTS, THE COLLEGES.
SO WE ALL KIND OF USE THE, UH, R C A, THE REGIONAL CERTIFICATION AGENCY TO PROVIDE CERTIFICATIONS FOR US.
IN ADDITION, THERE'S ADDITIONAL BENEFITS.
IF A FIRM GETS CERTIFIED AS A MINORITY OR WOMAN-OWNED BUSINESSES.
THE FIRMS, AS TROY INDICATED, MUST BE HEADQUARTERED OR HAVE A SIGNIFICANT BUSINESS PRESENCE IN THE SAN ANTONIO METROPOLITAN STATISTICAL AREA, OR THE SAMHSA, WHICH INCLUDES BEARER COUNTY AND THE SEVEN SURROUNDING COUNTIES.
AND WHY THAT IS, IS BECAUSE DURING THE DISPARITY STUDY, WE HAVE TO DEFINE NARROWLY TAILOR OUR PROGRAM AND DEFINE WHERE WE SPEND MOST OF OUR MONEY.
SO THESE EIGHT COUNTIES REPRESENT WHERE THE CITY SPENDS THE MAJORITY OF MONEY IN A VERY GENERAL WAY.
THIS CHART IS DESIGNED TO HELP YOU UNDERSTAND HOW WE APPLY S BETA AND THE TOOLS THAT WE HAVE ON THE LEFT SIDE OF THE CHART, OR DISCRETIONARY CONTRACTS SUCH AS REQUESTS FOR PROPOSALS OR REQUESTS FROM QUALIFICATIONS.
TROY DID A GOOD JOB KIND OF BREAKING THAT DOWN FOR Y'ALL.
THESE SOLICITATIONS ARE GRADED LIKE A TEST.
THE CLOSEST TO A HUNDRED WINS THE CONTRACT AND THESE SCENARIOS UP TO 20 POINTS CAN BE APPLIED FOR SUB BETA CERTIFIED, UH, FIRMS. UM, IT, WE CAN ALSO APPLY, APPLY SUBCONTRACTING GOALS TO DISCRETIONARY CONTRACTS.
ON THE RIGHT SIDE OF THIS, UM, SLIDE ARE LOW BID CONTRACTS.
SO A LOT OF YOUR HORIZONTAL ROAD CONSTRUCTION PROJECTS FALL INTO THIS CATEGORY.
THERE AREN'T POINTS, IT'S BASICALLY LOW BID.
IN THESE CASES, WE CAN'T REALLY INFLUENCE WHO WINS AS A PRIME, BUT WHAT WE CAN DO IS APPLY SUBCONTRACTING GOALS.
SO IN A VERY GENERAL WAY, THIS IS HOW WE APPLY SUB BETA.
THERE ARE A NUMBER OF DIFFERENT TOOLS THAT WE USE IN BOTH OF THOSE SCENARIOS.
WHEN, UH, SUB BETA IS APPLIED TO CITY SOLICITATIONS, IT'S VERY IMPORTANT TO REMEMBER THAT THAT'S NOT DONE EXCLUSIVELY BY THE SMALL BUSINESS OFFICE.
THE ORDINANCE THAT WAS REDRAFTED IN 2010 ALSO ESTABLISHED A GOAL SETTING COMMITTEE.
THIS GOES BACK TO PROVIDING A VERY NARROWLY TAILORED RESPONSE TO DISPARITY.
IT'S MADE UP OF SIX DIFFERENT MEMBERS, INCLUDING THE CITY, UH, REPRESENTATIVE FROM THE CITY MANAGER'S OFFICE, A REPRESENTATIVE FROM THE ORIGINATING DEPARTMENT, A REPRESENTATIVE FROM EITHER T C I OR FROM THE FINANCE DEPARTMENT DEPENDING ON WHAT WE ARE BUYING AS WELL AS TWO CITIZEN MEMBERS.
TO, TO MY KNOWLEDGE, AT LEAST BACK IN 2010, WE ARE THE ONLY MUNICIPALITY THAT HAS CITIZEN MEMBERS ON THEIR GOAL SETTING COMMITTEE.
THIS IS SOMETHING THAT THE COUNCIL AT THAT TIME FOUND VERY IMPORTANT TO INCLUDE IN THE C BETA PROGRAM.
THE GOAL SETTING COMMITTEE LOOKS AT DATA IN OUR CENTRAL VENDOR REGISTRATION TO DETERMINE WHO'S AVAILABLE, WHO'S BASICALLY READY, WILLING, AND ABLE TO DO WORK WITH THE CITY.
IN ADDITION, WE LOOK AT HISTORICAL, UH, DATA TO DETERMINE HOW WE DID FROM A PARTICIPATION STANDPOINT ON PREVIOUS SOLICITATIONS.
SO THE BIG TAKEAWAY, UH, ON THIS SLIDE IS WE DO A CONTRACT,
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CONTRACT CONTRACT BY CONTRACT REVIEW, AND WE USE REAL TIME DATA TO REVIEW AND ANALYZE EACH OF THOSE CONTRACTS TO DETERMINE WHAT TOOL IS BEST TO USE.TO CONCLUDE THIS PORTION OF THE PRESENTATION, I WANT TO PROVIDE YOU AN OVERVIEW OF THE RESULTS FROM THIS LAST YEAR, 2017.
AGAIN, THIS IS ALL BROKEN DOWN IN GREAT DETAIL IN THE ANNUAL REPORT THAT WE PRESENTED TO YOU ALL LAST MONTH.
FOR YOUR REFERENCE, WE DO PRODUCE THIS REPORT ON A YEARLY BASIS.
WE'VE DROPPED THAT COPY OFF TO YOUR OFFICES AND I'M HAPPY, VERY HAPPY TO REPORT THAT IN 2017, WE SAW THE LARGEST UTILIZATION OF SMALL MINORITY WOMEN-OWNED BUSINESSES IN THE HISTORY OF THE PROGRAM WITH $246 MILLION OR 49% OF CITY CONTRACT DOLLARS GOING TO OVER 500 UNIQUE IN INDIVIDUAL SMALL MINORITY WOMEN-OWNED BUSINESSES.
OF THAT 37% WAS SPECIFICALLY TO MINORITY WOMEN-OWNED BUSINESSES.
AND WHILE A 37% UTILIZATION RATE IS GREAT, AND WE'RE VERY HAPPY ABOUT THOSE, UM, THOSE RESULTS, THERE IS STILL MUCH WORK TO BE DONE.
THERE'S STILL WORK THAT WE WANNA DO, UH, IN GENERATING RESULTS FOR INDIVIDUAL ETHNICITIES IN INDIVIDUAL INDUSTRIES OR AVAILABILITY RATE OVERALL IS AROUND 41% AND WE'RE AT 37%.
THIS NEXT CHART REALLY DEMONSTRATES AND HIGHLIGHTS THE PROGRESS OF THE C BETA PROGRAM SINCE THAT MAJOR OVERHAUL IN 2010.
THE LEFT SIDE OF THIS GRAPH INDICATES ACTUAL PAYMENT, AND THAT'S ONE DISTINCTION I WANNA MAKE.
TROY WAS HIGHLIGHTING AWARD DATA.
THIS IS ACTUAL DOLLARS PAYMENTS GOING TO PRIMES AND SUBCONTRACTORS.
THE LEFT SIDE OF THE CHART IS THE RESULTS FROM 2011 AND THE RIGHT SIDE OF THIS, UH, CHART.
THE GRAPH REPRESENTS 27 TEAM DATA BROKEN DOWN BY THE DIFFERENT INDUSTRIES WE TRACK.
AND AS YOU CAN SEE, EACH OF THESE INDUSTRIES HAVE REALIZED SIGNIFICANT INCREASES.
THE VERY BOTTOM OF THIS CHART GIVES YOU AN IDEA OF OUR OVERALL SUCCESS OF THE PROGRAM WITH A 185% INCREASE IN UTILIZATION.
SO QUITE A BIT OF SUCCESS THAT WE'VE SEEN, A COMMITMENT TO THE PROGRAM BY YOU ALL FROM A RESOURCE STANDPOINT, A PROCESS THAT WE PHASED IN OVER A NUMBER OF YEARS, A COMPLIANCE MODULE AND A REVIEW OF CONTRACTS TO DETERMINE WHERE WE CAN SQUEEZE OUT THE MOST UTILIZATION HAS LED TO THIS, UH, TREMENDOUS INCREASE IN IN IN UTILIZATION.
I WILL POINT OUT THAT WE DO HAVE A SMALL BUSINESS ADVOCACY COMMITTEE SBA, THAT OVERSEES OUR PROGRESS.
YOU ALL APPOINT SBA C MEMBERS.
THERE'S 11 OF THEM, UH, 10 PLUS THE MAYOR'S APPOINTEE.
THEY MEET MONTHLY AND REALLY GRILL US AND CHALLENGE US ON THE DATA AND OUR METRICS AND HOLD OUR FEET TO THE FIRE AS FAR AS WHAT ADDITIONAL CHANGES NEED TO BE MADE AND WHAT RECOMMENDATIONS THAT THEY WOULD BE PROPOSING WHEN WE OVERHAUL THE SUB BETA ORDINANCE.
WITH THAT, I'LL HAND IT BACK TO TROY TO CONCLUDE THE PRESENTATION, AND BOTH MICHAEL AND I ALONG WITH TROY ARE HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
THE LAST AREA I'D LIKE TO TALK ABOUT IS THE HIGH PROFILE CONTRACTING PROCESS.
AND AS I MENTIONED, THAT PROCESS ACTUALLY ALLOWS COUNCIL MEMBERS THE ABILITY TO PROVIDE INPUT AND POLICY OVERSIGHT INTO OUR HIGH PROFILE CONTRACTS.
THE CURRENT DEFINITION OF OUR HIGH PROFILE CONTRACTS ARE DISCRETIONARY CONTRACTS VALUED OVER $1 MILLION.
THEY ARE VALUED OVER 1 MILLION, OR THEY HAVE A HIGH LEVEL OF COMMUNITY INTEREST OR OTHER EXCEPTIONAL INTEREST, OR THEY ARE HIGHLY COMPLEX OR TECHNICAL IN NATURE OR CONTRACT TERMS AND CONDITIONS THAT ARE NON-STANDARD OR COMPLEX.
THIS ACTUALLY IDENTIFIES THOSE CONTRACTS THAT WE ACTUALLY DRIVE THROUGH THE HIGH HIGH PROFILE PROCESS.
GIMME A LITTLE BIT OF HISTORY ABOUT THE HIGH PROFILE CONTRACTING PROCESS.
THE DEFINITION WAS ESTABLISHED IN 2002 AND IN 2004, OUR CITY CODE WAS AMENDED OR WITH THE ADOPTION OF THE CAMPAIGN FINANCE REGULATIONS.
AND ESSENTIALLY WHAT THAT DID IS THAT CREATED THE BLACKOUT PERIOD FOR POLITICAL CONTRIBUTIONS FROM THE DATE OF AN ISSUANCE OF AN R F P TO 30 DAYS POST AWARD OF THE R F P.
IT ALSO IN 2009, WE ESTABLISHED POLICY GUIDELINES.
UH, THESE POLICY GUIDELINES BASICALLY, BASICALLY PERTAINED TO THE EVALUATION PROCESS AND REQUIRED THAT A DIRECTOR OF THE DEPARTMENT RESPONSIBLE FOR THE PROCUREMENT PARTICIPATE ON THAT EVALUATION COMMITTEE.
AND IF IT'S $2.5 MILLION OR HIGHER THAN AN ELECT, UM, AN E L T MEMBER WOULD ACTUALLY SERVE ON THAT COMMITTEE.
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HIGH PROFILE CONTRACTS COUNCIL COMMITTEE WAS CREATED, WHICH, UM, COUNCILMAN ENCOURAGED CURRENTLY CHAIRS.AND THEN IN 2013 THERE WERE ADDITIONAL REVISIONS TO THE ETHICS CODE AND CITY POLICY.
AND THESE INCLUDED A WIDE VARIETY OF THINGS FROM A POLICY STANDPOINT.
WE REQUIRED DISCLOSURE OF THE EVALUATION COMMITTEE MEMBER NAMES AND TITLES ON OUR WEBSITES AND OUR SOLICITATIONS SO THAT IN THE EVENT THAT THERE WAS A CONFLICT, A POTENTIAL RESPONDENT COULD IDENTIFY THAT CONFLICT WITH A COMMITTEE MEMBER.
WE ALSO MODIFIED THE BLACKOUT PERIOD FOR PROHIBITED CAMPAIGN CONTRIBUTIONS.
THE START DATE WAS CHANGED FROM UPON RELEASE TO THE 10TH DAY.
UM, FOLLOWING THE RELEASE OF THE SOLICITATION, WE ALSO REVISED OUR CONTRACT DISCLOSURE FORMS REQUIRING THE, THE DISCLOSURE OF ALL PARTNERS, OFFICERS AND DIRECTORS OF A POTENTIAL RESPONDENT.
THEN ALSO THE CITY AUDITOR AND MYSELF.
WE NOW GIVE REPORTS TO THE, THE HIGH PROFILE COMMITTEE OF THE DUE DILIGENCE AND REGARDING, UH, POLITICAL CONTRIBUTIONS THAT THERE ARE ANY ANOMA ANOMALIES DURING THE PRESENT, DURING THE EVALUATION OR IF ANYTHING STOOD OUT.
AND WE ALSO HAD THE ADDITION OF THE COMPLIANCE AUDITOR IN THE INTERNAL AUDIT, UM, DEPARTMENT.
THE HIGH PROFILE PROCESS RUNS THROUGH THE AUDIT AND ACCOUNTABILITY COMMITTEE AS PART OF THAT AUDIT AND ACCOUNTABILITY COMMITTEE ANNUALLY PROVIDE A HIGH PROFILE FORECAST FORECASTING THOSE HIGH PROFILE CONTRACTS THAT ARE GONNA BE PRESENTED THIS.
UM, THEY PROVIDE OVERSIGHT OF THE PROCUREMENT PROCESS AND WE PROVIDE THEM BOTH A PRES SOLICITATION AND A POSTS SOLICITATION BRIEFING.
THE PRES PURPOSE OF THE PRES SOLICITATION BRIEFING.
IT'S TO ALLOW INPUT INTO THE SCOPE, INTO THE EVALUATION COMMITTEE, INTO THE PREFERENCES THAT ARE BEING PROVIDED AND THE ABILITY TO, FROM A PROCESS STANDPOINT, UM, IF THERE ARE CHANGES THEY WOULD LIKE PRIOR TO THE ACTUAL ISSUANCE OF THAT R F P, WE HAVE THAT OPPORTUNITY TO DO THAT.
WE ALSO COME BACK TO THEM AND PROVIDE A POST SOLICITATION BRIEFING UPON THE COMPLETION OF THE ACTUAL EVALUATION SHARING, IF THERE ARE ANY PROCESS ANOMALIES AND THE RESULTS OF THAT PROCESS.
KEVIN AND I, KEVIN BARTOL AND I ALSO REPORT OUT THE DUE DILIGENCE DURING THAT COMMITTEE.
UM, WE DO INTERNET SEARCHES, WE DO FINANCIAL, UM, FINANCIAL ANALYSIS ON THE COMPANY TO MAKE SURE IT'S A GOING CONCERN.
LOOK AT POLITICAL CONTRIBUTIONS AND ANYTHING THAT WOULD BE AN ANOMALY DURING THAT.
FOR F Y 17, THERE'S APPROXIMATELY 45 HIGH PROFILE PROCUREMENTS THAT HAD BEEN IDENTIFIED, AND WE CARVED THOSE INTO TWO BUCKETS FOR PRESENTATION PURPOSES.
THOSE FOR INDIVIDUAL PRESENTATION THAT ARE HIGH PROFILE.
AND THEN THOSE THAT ARE FAIRLY ROUTINE, UH, GO THROUGH A CONSENT PROCESS.
AND ONE OF THE RECOMMENDATIONS THAT WE WILL BE MAKING DURING THIS IS TO REALLY LOOK AT THE DEFINITION OR THE PROCESS FOR HIGH PROFILE, AND ARE THERE CHANGES THAT NEED TO BE MADE TO THAT TO FOCUS REALLY JUST ON THE HIGH PROFILE INDIVIDUAL, UM, ITEMS. AS FAR AS NEXT, NEXT STEPS, WHERE DO WE GO FROM HERE? I THINK THE, THE MANAGER MENTIONED IN OUR OPENING STATEMENTS THAT WE CAN COME BACK MARCH 7TH FOR AN ADDITIONAL B SESSION PRESENTATION TO BUILD UPON THE INFORMATION OR THE FOUNDATION THAT WE PRESENTED TODAY FOR POS A POLICY DISCUSSION THAT THE COUNCIL WOULD LIKE ABOUT THE PROGRAMS THAT WE TALKED ABOUT SPECIFICALLY NEXT WEEK, WE WOULD BE PROVIDING RECOMMENDATIONS IN SEVERAL AREAS AS FAR AS CHANGES OR ENHANCEMENTS TO OUR CURRENT PROGRAMS TO INCLUDE ON THE LOCAL PREFERENCE PROGRAM.
WE TALKED ABOUT THE GEOGRAPHIC BOUNDARY, THE LOCAL PREFERENCE BEING LIMITED TO THE MUNICIPAL BOUNDARY DURING OUR PROCUREMENTS.
THERE WERE CERTAIN SITUATIONS THAT MAY HAVE CAME UP THAT A RESPONDENT MAY HAVE RESIDED IN ALMA HEIGHTS.
AND SO WE'LL BE LOOKING AT EXPANDING THE MUNICIPAL BOUNDARIES TO INCLUDE ALL THOSE DONUT HOLES OR CITIES THAT CURRENTLY RESIDE INSIDE OUR MUNICIPAL BOUNDARIES.
ON THE LOW BID, WE TALKED ABOUT THE 3% AND STATUTE ALLOWS TO US TO GO UP TO 5%.
WE'LL BE MAKING A RECOMMENDATION ON LOOKING AT MOVING FOR OUR LOW BID CONTRACTS, ADJUSTING THAT 3% VARIANCE TO A 5% TO THE MAXIMUM ALLOWED UNDER STATE LAW.
THERE ARE CERTAIN EXCEPTIONS THAT WE, THAT WE'D LIKE TO LOOK AT FOR UNDER OUR LOCAL PREFERENCE.
YOU KNOW, IT DOESN'T MAKE SENSE WHEN WE LOOK FOR OR PROCURE STATE AND FEDERAL REPRESENTATION SERVICES THAT WE LIMIT IT TO A LOCAL PREFERENCE OR APPLY A LOCAL PREFERENCE WHEN THOSE COMPANIES ARE REALLY GONNA RESIDE IN AUSTIN OR IN DC.
WE'D ALSO LOOK AT, UH, MAKING A RECOMMENDATION THAT THE COUNCIL WOULD WISH TO INCLUDE IN OUR I D R PROCESS, LOOKING AT ADDITIONAL LEGISLATIVE CHANGES ON BOTH THE VETERANS PROGRAMS AND THE, UM, THE LOCAL TO BE ABLE TO GO BACK AND APPLY SOME OF OUR PREFERENCES MORE BROADLY IN THOSE AREAS WHERE WE ARE CURRENTLY PROHIBITED.
WE'LL ALSO BE TALKING ABOUT MODIFICATIONS TO THE HIGH PROFILE PROCESS, BASICALLY INCREASING
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THAT THRESHOLD FROM A MILLION TO 5 MILLION TO BASICALLY ALLOW THE COMMITTEE TO FOCUS ON THOSE TRULY HIGH PROFILE CONTRACTS THAT HAVE POLICY DECISIONS AND, UM, NOT ON THE ROUTINE JANITORIAL AND LANDSCAPING AND THINGS LIKE THAT.THE ADDITIONAL TOPICS THAT WE WOULD ALSO LIKE TO, TO LOOK AT, WE'VE RECEIVED MANY REQUESTS FROM COUNCIL MEMBERS.
UM, COUNCILMAN COUNCILMAN PERRY HAS TALKED ABOUT HIS INTEREST IN EXPANDING THE VETERANS' PREFERENCE PROGRAMS. AND SO WE'LL BE TAKING A LOOK AT THAT NEXT WEEK ALSO ON THE C C R BY COUNCILMAN SALANA ON THE LIVING WAGES.
LOOKING AT IS THERE AN OPPORTUNITY TO PROVIDE ADDITIONAL SCORING CATEGORIES, OUR PREFERENCES, UM, WITH RESPECT TO LIVING WAGES AND HOW WE COULD DO THAT IN OUR DISCRETIONARY SOLICITATIONS AND WHERE THAT WOULD ACTUALLY BE APPLICABLE AS FAR AS OUR P THREES AND, UM, JANITORIAL CONTRACTS AND THINGS OF THAT NATURE, COUNCILMAN IMPLY HAS RECENTLY REACHED OUT TO US ASKING US TO TAKE A LOOK AT A RESPONSIBLE BID ORDINANCE AND LOOKING AT OTHER CITIES, OTHER CITIES HAVE A RESPONSIBLE BID ORDINANCE IN PLACE LIKE THE CITY OF HOUSTON THAT REALLY MEMORIALIZE WHAT WE DO FROM A RESPONSIBLE BIDDER, WHAT'S REQUIRED OF THEM.
UM, ARE THEY REGISTERED WITH THE STATE, ARE THEY LICENSED? DO THEY HAVE INSURANCE REQUIREMENTS? UM, WILL THEY SATISFY THE INDEMNITY REQUIREMENTS? BUT IT ALSO TAKES A STEP ABOVE AND BEYOND, AND THIS IS MOSTLY APPLICABLE TO PUBLIC WORKS CONTRACTS, BUT IT TAKES A STEP AND BEYOND THE SENSE THAT IT HAS OTHER REQUIREMENTS, MAYBE TO THE EXTENT THAT SEXUAL HARASSMENT TRAINING MAY BE REQUIRED OF AN ORGANIZATION OR PROOF OF THAT BEFORE THEY ARE ABLE TO BID ON OUR CONTRACTS.
UM, ARE THERE APPRENTICESHIP PROGRAMS THAT ARE REQUIRED? UM, HAVE THEY BEEN DISBARRED FOR NOT MEETING THE, UH, DAVIS BACON, DAVIS BACON WAGE REQUIREMENTS? SO IT TAKES, ACTUALLY TAKES A STEP BEYOND AND WE'LL BE LOOKING AT THAT AS WELL.
THE OTHER AREA THAT CHERYL MENTIONED IN HER OPENING STATEMENTS IS THAT DIRECTLY AFTER THIS MEETING, IF COUNSEL SHOULD, SHOULD CHOOSE, WE CAN ISSUE AN ADDENDUM ON THE LABOR PEACE AGREEMENT REMOVING THAT REQUIREMENT FOR OUR CURRENT SOLICITATION FOR THE AIRPORT CONCESSION PROGRAM.
THAT AIRPORT CONCESSION PROGRAM IS ACTUALLY DUE BACK TO THE CITY ON JUNE 6TH, SO WE'D HAVE ADEQUATE TIME TO ACTUALLY REMOVE THAT AND NOT, UM, INCONVENIENCE THE RESPONDENTS.
AFTER, AFTER PRESENTATION NEXT WEEK WE'D, AND WE'D TAKE ALL THE COMMENTS AND POLICY INPUT FROM THE COUNCIL WITH RESPECT TO OUR PREFERENCE PROGRAMS AND ACTUALLY GO OUT AND VISIT WITH OUR STAKEHOLDERS SUCH AS THE CHAMBERS, UM, THE SMALL BUSINESS BUSINESS ADVOCACY COMMITTEE THAT RENEE MENTIONED AND OTHER COMMUNITY GROUPS TO, UM, GET THEIR INPUT ON THESE PROGRAMS. MAYOR, WITH THAT, THAT CONCLUDES OUR PRESENTATION AND WE'D BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE.
UM, AND RENEE FOR THE PRESENTATION.
UH, REALLY IMPORTANT INFORMATION FOR PEOPLE, AND I THINK IT'S SRI IT WOULD SURPRISE MOST PEOPLE, MAYBE PROSPECTIVE COUNCIL CANDIDATES TO KNOW THAT THE MAJORITY OF THE ACTIONS TAKEN BY CITY COUNCIL HAVE TO DO WITH EXECUTING PROCUREMENT CONTRACTS.
UM, SO THE WORK THAT IS DONE TO MAKE SURE THAT AS, AS OBJECTIVE AND NON-POLITICAL A PROCESS THAT RESULTS IN THE BEST, UH, EXPERIENCE FOR THE SAN ANTONIO TAXPAYER IS EXTRAORDINARILY IMPORTANT.
UM, AND THAT ALSO THAT WE HAVE OUR VALUES BAKED INTO IT.
UH, PROTECTIONS FOR WORKERS PROTECTION OR, OR ADVANCEMENTS OF LOCAL COMPANIES.
UM, THE OPPORTUNITY FOR SMALL BUSINESSES TO GROW IN SAN ANTONIO, ALL THOSE THINGS ARE PART OF THE PROCUREMENT PROCESS AND WHICH IS WHY I ALSO CONCUR WITH THE CITY MANAGER ABOUT THE RECOMMENDATION WITH REGARD TO THE AIRPORT CONCESSIONS CONTRACT, BECAUSE WE NEED TO BE VERY CAREFUL, UH, IN ORDER TO KEEP IT NON-POLITICAL, TO KEEP IT A POLICY FOCUSED DISCUSSION THAT WHEN WE MAKE CHANGES, UH, TO THE PROCUREMENT POLICY, WHETHER IT'S THROUGH A PARTICULAR CONTRACT OR THROUGH THE POLICIES IN GENERAL, THAT WE PUT IT THROUGH A PROPER PROCESS.
AND SO I AGREE WITH, UH, DOING THAT, HAVING A PUBLIC, UH, PUBLIC VETTING PROCESS FOR THAT.
AND, UM, SO I'LL CONCUR WITH THE, WITH THE RECOMMENDATION.
UM, AND, AND ALSO IN, IN TERMS OF US JUST BEING AN ORGANIZATION DEDICATED TO CONTINUOUS IMPROVEMENTS, UM, WE WANNA MAKE SURE, AND THERE'S CLEAR INTENT FROM ALL OF THESE RECOMMENDATIONS THAT WE HAVE, AGAIN, THOSE VALUES AFFIRMED, UM, COUNCILMAN ALANA'S, R F P FROM I THINK A YEAR AND A HALF OR SO AGO, UH, SOMETHING THAT HAD GREAT INTEREST AND, AND, UM, YOU KNOW, IN TERMS OF MAKING SURE THAT WE HAVE, UH, PUBLIC CONTRACTS THAT ALSO PROVIDE FOR, UH, THE KIND OF WAGES AND SO AND SO FORTH THAT ARE EXPECTED FROM, UH, THE PUBLIC THAT WOULD BE WORKING THEM.
UM, I WANTED TO, I DIDN'T REALLY HAVE ANY QUESTIONS.
I WANTED TO AFFIRM YOUR DIRECTION ON, UM, THE LOCAL PREFERENCE, UM, VETTING OR,
[01:05:01]
OR, UH, FURTHER DISCOVERY ON, UH, GEOGRAPHIC BOUNDARIES.I THINK IF THERE HAS BEEN ONE AREA OF HIGH CONTENTION OVER THE LAST, UH, SEVERAL BIG CONTRACTS THAT WE'VE HAD, IT'S BEEN LOCAL PREFERENCE AND WE WANNA MAKE SURE THAT THE INTENT, THE SPIRIT OF LOCAL PREFERENCE IS ACTUALLY RESULTING IN WORK FOR LOCAL COMPANIES, SAN ANTONIO COMPANIES.
AND SO THE GEOGRAPHY I THINK IS EXTREMELY IMPORTANT.
UM, AND, UH, I WANTED TO ALSO JUST REAFFIRM THE GREAT WORK THAT, UH, RENEE AND HIS DEPARTMENT HAVE DONE ALONG WITH THE SS A C ON THE C BETA ORDINANCE.
UM, IT WAS CREATED, I BELIEVE, IN 1992 WAS THE FIRST TIME WE ESTABLISHED IT IN MY, UH, I GOT A, A BRIEFING ABOUT THE LEVEL OF SMALL BUSINESS PROCUREMENT THAT WAS OCCURRING AT THE TIME WAS ABOUT 10%, AND NOW WE'RE UP TO HALF OF ALL CONTRACTS, HALF OF THE DOLLARS SPENT BY THE PUBLIC ARE GOING TO THE ADVANCEMENT OF SMALL MINORITY WOMEN OWNED BUSINESS ENTERPRISES.
SO I THINK THAT'S GREAT SUCCESS.
AND AS I TALK TO PEOPLE FROM OTHER CITIES THAT WORK IN, IN ECONOMIC DEVELOPMENT OR PROCUREMENT OF SOME KIND, THEY REMARK ABOUT, UH, HOW WELL RUN AND HOW MUCH OF A MODEL OUR PROCUREMENT PROCESS HAS BEEN.
AND SO, UH, ON THAT NOTE, THANK YOU RENEE, UH, THANK YOU TO YOUR TEAM TROY.
AND I ALSO WANT TO GIVE A SHOUT OUT TO ALEX LOPEZ, WHO MADE THE MISTAKE OF MOVING TO AUSTIN, BUT FOUND GREENER PASTURES BACK HERE HOME.
I KNOW THAT SHE'S ONE OF THE ARCHITECTS OF THE, THE MODERN CE BETA PROGRAM THAT WE HAVE.
SO THANK YOU ALEX, FOR YOUR GREAT WORK AS WELL.
SO I DON'T HAVE ANY QUESTIONS.
I'LL NOW TURN IT OVER TO MY COLLEAGUES, UM, COUNCILMAN BROCK HOUSE.
AND I WILL REITERATE THE MAYOR'S COMMENTS TO TROY AND, UH, RENEE, I THINK, AND YOU GUYS HAVE GONE ABOVE AND BEYOND AND I, AND, AND IN MY CONVERSATIONS WITH RENEE, UH, YOU KNOW, YOU'VE BEEN OPEN TO JUST ABOUT ANYTHING I'VE OFFERED YOU.
UH, AND YOU'VE GONE BACK AND YOU CONTINUE TO FIND WAYS TO, UH, TRY TO HELP, UM, WHAT I CONSIDER IS MOST IMPORTANT TO THE PEOPLE I REPRESENT IN, IN IN DISTRICT SIX.
AND, AND THEN TROY, YOU'RE JUST, YOU JUST INTO THE NUMBERS SO FAR.
I CAN'T EVEN BEGIN TO COMPETE WITH YOU ON ANY OF THAT DATA STUFF, BUT, UH, CONGRATULATIONS TO STAFF.
I THINK IT, I FEEL CONFIDENT AT LEAST KNOWING THAT WE'RE GONNA DEAL RIGHT WITH THE, THE TWO OF YOU AND THE FACTS AND DATA AS IS WHAT'S GOING TO, AT THE END OF THE DAY GONNA DRIVE THIS.
AND I THINK THAT'S WHAT'S MOST IMPORTANT FOR ALL OF US.
UM, I I WILL JUST SAY MAYOR, THAT I WANNA BE VERY CAREFUL BECAUSE YOU SAID BAKE OUR VALUES INTO, UM, OUR CONTRACTING.
THE NUMBER ONE THING WE CAN DO IS MAKE SURE OUR VALUES ARE TRUE AND REFLECTIVE OF THE VALUES OF THIS COMMUNITY, NOT THE VALUES OF THE 11 OF US.
AND WE CAN HAVE AN AGENDA HERE AND WE CAN ATTEMPT TO BUILD THE CITY AND, AND DO THINGS THROUGH OUR CONTRACTING AND THE RIGHT EMPLOYMENT, THE RIGHT OPPORTUNITIES, THE RIGHT WORKPLACE PROTECTIONS AND ALL THESE THINGS.
BUT WE'RE IN AN ECHO CHAMBER IN A BUBBLE DOWN HERE.
AND OUR ABILITY TO UNDERSTAND OUR FUTURE SUCCESS AS A COMMUNITY, UH, WE HAVE TO EMBRACE THE BUSINESS COMMUNITY AND AT THE SAME TIME EMBRACE THE, THE, THE LABOR COMMUNITY AND WORK TOGETHER TO FIND A WAY TO BUILD OPPORTUNITY FOR ALL OF US.
BUT IT HAS TO BE THE VALUES OF THE COMMUNITY AND THOSE THINGS WE DO HAVE TO BE REFLECTIVE OF WHAT THE CITIZENS WE REPRESENT, HOW THEY FEEL ABOUT THINGS.
AND I, I THINK THAT'S WHERE WE NEED TO GET A LITTLE BIT BETTER AT AS A BODY, WHICH IS INCLUSION, INCLUSION OF THOUGHTS AND, AND IDEAS, BUT NOT JUST FROM THE USAA OR THE CREDIT HUMANS OR WHOEVER, RIGHT? UH, IT'S ALSO THE SMALL BUSINESSES THAT I'VE HEARD FROM OVER THE LAST TWO, THREE WEEKS THAT ARE CLAMORING TO BE HEARD, TO BE PART OF A PROCESS.
AND I THINK WE HAVE TO SHARE THAT.
SO WE GOTTA BE VERY CAREFUL ABOUT VALUES.
'CAUSE THOSE ARE HARD TO QUANTIFY AND THEY'RE HARD TO BAKE INTO A, UH, AN R F P OR A CONTRACT.
THEY HAVE TO BE MEASURABLE, THEY HAVE TO BE FAIR, AND IT HAS TO BE A LEVEL PLAYING FIELD.
ANYTHING WE PUT OUTTA HERE SO THAT THE COMMUNITY UNDERSTANDS THAT, THE BUSINESS COMMUNITY WHO'S BIDDING ON THIS, 'CAUSE WE DON'T WANNA DRIVE EMPLOYMENT OPPORTUNITY AWAY.
UH, A LOT OF PEOPLE HAVE PROBLEM DOING BUSINESS PROBLEMS DOING BUSINESS WITH THE CITY OF SAN ANTONIO BECAUSE OF OUR ONEROUS, ONEROUS RULES DEVELOPMENT SERVICES AND THE THINGS THAT WE'RE IMPLEMENTING.
AND WE HAVE TO REMEMBER AS A BODY, THE THINGS WE DO, RIGHT? THE LAWS WE PASS, UM, OUR COSTS BEING PASSED ON TO SOMEONE THAT'S SOMEONE'S, OUR, OUR RESIDENTS, OUR CONSTITUENTS.
UM, I DO THINK, AND RENEE, WE'VE TALKED ABOUT THIS AT GREAT LENGTH, WHICH IS LET'S EXPAND AND I'LL JUST QUICKLY HIT THOSE POINTS.
LET'S EXPAND OUR INCENTIVE OPPORTUNITIES TO EVERY CORNER OF THE CITY OF SAN ANTONIO.
I DON'T THINK, UM, WE SHOULD BE NARROWING IT TO PARTICULAR AREAS.
WE CAN INCENT PARTICULAR AREAS A LITTLE MORE THAN OTHERS, BUT EVERY AREA IN OUR COMMUNITY SHOULD BE OPEN FOR INCENTIVES.
THEN WE SHOULD ALSO GET CREATIVE IN THOSE INCENTIVES.
IT JUST DOESN'T HAVE TO BE TAX ABATEMENTS OR ANYTHING.
IT COULD BE VIA, COULD BE, UH, IT COULD BE USING, UH, AGAIN, MORE SAWS, IMPACT FEE WAIVERS.
IT COULD BE THROUGH C P S ENERGY.
THERE'S A LOT OF TOOLS WE HAVE IN OUR ARSENAL THAT ARE GONNA GIVE US THE CAPABILITY, UH, TO INCENT BUSINESSES AND SOMETHING THAT'S SPECIFIC.
AND I THINK RENEE AND, AND ACTUALLY COUNCILMAN SALANI AND I ARE SHARING A, I DUNNO IF HE KNOWS IT OR NOT, BUT WE HAD A, AN OPPORTUNITY TO DO A, A FLOORING COMPANY THAT WAS LOOKING FOR INCENTIVE.
SHE COULDN'T EXPAND HER BUSINESS AND SHE WAS ABOUT $12,000 SHORT ON GETTING
[01:10:01]
IT DONE.SHE'S ACTUALLY IN DISTRICT FOUR MOVING FROM DISTRICT SIX TO DISTRICT FOUR.
AND, UM, SHE WAS RIGHT ACROSS THE STREET FROM THE ZONE
UM, THAT IS UNACCEPTABLE IN OUR SCENARIO.
AND RENEE JUMPED ON IT AND STARTED HAVING MULTIPLE MEETINGS WITH HER TO HELP HER EXPAND HER BUSINESS AND HER OPPORTUNITIES.
SO I, I THINK THAT'S WHERE WE NEED TO GET TO IS EXPANDING IT, UH, REMEMBERING SMALL AND MEDIUM SIZED BUSINESSES AND HOW WE QUANTIFY THOSE ARE THE BACKBONE OF THE CITY OF SAN ANTONIO.
AND I THINK, UH, GOING FORWARD, RENEE, THOSE ANALYTICS ARE GONNA BE IMPORTANT FOR ALL OF US AS WE DEFINE WHAT'S SMALL.
SO I'D LIKE TO ASK STAFF TO MAKE SURE WE UNDERSTAND WHAT REALLY IS A SMALL BUSINESS, WHAT'S A MEDIUM-SIZED BUSINESS? AND THESE LARGE ONES, PEOPLE DON'T LIKE SEEING TENS OF MILLIONS OF DOLLARS GOING TO LARGE COMPANIES AND THE SMALLER ONES STRUGGLING BECAUSE THE BEAUTY OF THE SMALL BUSINESS IS IT'S A, IT'S A TRANS, IT'S A GENERATIONAL WEALTH BUILDING OPPORTUNITY.
THOSE BUSINESSES STAY IN FAMILIES AND THEY GROW FAMILIES FOR YEARS.
SO, UH, RENEE, IF WE CAN MAKE SURE THAT WE DO HAVE THOSE ANALYTICS, AND I'D LIKE TO KNOW, UH, TROY GOING FORWARD TOO, UH, WHAT TYPES OF BUSINESSES WE'RE LOOKING AT IN, IN THOSE DIRECT AWARDS AND THINGS LIKE THAT.
WE, I WOULD HOPE WE DIG FURTHER INTO WHAT PARTS OF TOWN THOSE ARE GOING INTO, WHAT, YOU KNOW, WHO'S REALLY RECEIVING THAT.
SO IT'S MORE THAN JUST A, UM, YOU KNOW, A LINE ON A TABLE THERE.
AND UM, WE CAN DIG INTO THAT OVER TIME THOUGH, BUT I THINK THAT'S IMPORTANT ON THE HIGH PROFILE CONTRACTS.
UM, TROY, I THINK WE SHOULD, AND I, THIS IS TO COUNCILWOMAN VIE GRAND'S POINT ON THE LAST SITUATION, SHE MADE A VERY GOOD POINT THAT WE DON'T HAVE ENOUGH TIMES SOMETIMES IN HIGH PROFILE CONTRACTING TO REALLY DIG INTO IT.
AND WE ARE ADULTS IN THE ROOM, SO, YOU KNOW, WE'RE GONNA, WE, WE SHOULD BE ABLE TO BE OKAY WITH THE POLITICAL NATURE OF OUR JOBS.
NO MATTER WHAT WE DO, WE'RE GONNA HAVE TO DEAL WITH IT.
SO I THINK HAVING MORE TIME IN THE HIGH PROFILE CON CONTRACTING PROCESS SO THAT WE CAN DEAL WITH BOTH SIDES OR PEOPLE BIDDING.
THE RADIO CONTRACT'S A PERFECT EXAMPLE OF THAT.
THE COUNCILWOMAN WAS UNCOMFORTABLE WITH THE VOTE BECAUSE SHE DIDN'T HAVE ALL THE KNOWLEDGE THAT CAN'T SURVIVE IN THIS BODY.
I THINK WE NEED TO SERIOUSLY LOOK AT GIVING US MORE TIME TO DEAL AND WORK WITH THAT.
I KNOW YOU'RE GONNA SAY, WELL, WE WANNA PROTECT YOU FROM HEAVY LOBBYING.
YOU KNOW, HEY, THAT COMES WITH THE JOB.
YOU KNOW, WE SPENT A LOT OF TIME GETTING THESE SEATS.
WE CAN SPEND THE TIME LISTENING TO BUSINESSES OVER A LONGER PERIOD OF TIME SO WE CAN UNDERSTAND WHAT WE'RE GONNA VOTE ON.
UM, AND I'D LIKE YOU TO ADD THAT ONE INTO CONSIDERATION.
HOW CAN WE GIVE US MORE TIME IN THE HIGH PROFILE CONTRACTING PROCESS TO UNDERSTAND WHAT WE'RE ACTUALLY VOTING ON? AND IT DOESN'T HURT TO HAVE A LITTLE BIT MORE TIME.
UM, AND THEN I'LL WRAP UP WITH THE, THE LABOR PEACE AGREEMENT PIECE.
UH, BEEN A, A HEAVY CONVERSATION AND I, I DO THINK WE'VE MADE THE RIGHT DECISION HERE.
UM, WE CAN FIND A WAY THROUGH TO, UM, OFFERING WORKPLACE PROTECTIONS, WORKING WITH COMMUNITIES TO HAVE DISCUSSIONS.
I THINK IF ANYTHING IN THIS DISCUSSION, WHAT WE'VE LEARNED IS, UH, WE DIDN'T ALLOW PEOPLE TO BE A PART OF THE PROCESS.
AND NOW WE HAVE, AND, AND AT THIS POINT, WE'RE GONNA MOVE FORWARD AND BUILD SOMETHING NEW.
BUT THIS IS WHAT I WOULD SAY, IT HAS TO BE LABOR AND BUSINESS, BUT WE HAVE TO TRUST THE BUSINESS COMMUNITY THAT THEY'RE GONNA DO WHAT'S RIGHT AND BEST FOR WHAT'S GOOD.
WE CAN'T OFFER BLANKET, UM, REGULATION ACROSS EVERY FORM OF BUSINESS.
WHETHER YOU'RE A SMALL MOM AND POP SHOP, OR, OR YOU'RE A, YOU KNOW, YOU'RE U S A OR WHATABURGER I TALKED TO TODAY WITH CONCERNS ABOUT LABOR PEACE AGREEMENTS, RIGHT? SO IT'S EVERYBODY COMING AT ME ABOUT HOW CAN WE BE A PART OF THE CONVERSATION IF WE MISS THE BOAT AND ANYTHING.
THIS LABOR PEACE AGREEMENT HAS SHOWN MYSELF AND THE COMMUNITY THAT WE HAVE TO STOP DECISION MAKING AND LEGISLATING FROM THE BACK DOORS OF CITY HALL.
IF WE CAN FIND A WAY TO DO IT OUT IN THE PUBLIC AND OPEN, OWN OUR POSITIONS, STAND FOR WHAT WE BELIEVE IN AND VOTE, I THINK WE'LL BE BETTER FOR IT AS LONG AS WE'RE DOING IT IN AN INCLUSIONARY MANNER.
AND, UM, I, I THANK YOU TO THE STAFF FOR, FOR, UM, THE RECOMMENDATION TO PULL IT BACK AND, AND THEN FIND A WAY TO GET IT RIGHT.
I DO BELIEVE LABOR NEEDS TO BE A PART OF THE DISCUSSION, THOUGH THEY CANNOT BE LEFT OUT.
UM, AND I, AND I THINK THE, THE BUSINESS COMMUNITY NEEDS TO BE AT THAT TABLE.
TROY AND RENEE AND WHOEVER ELSE IS GONNA DEAL WITH THIS.
IT HAS TO BE ALL STAKEHOLDERS, BECAUSE I THINK WE CAN GET TO THE WORKPLACE PROTECTIONS AND THE THINGS WE'RE LOOKING FOR.
LIKE COUNCILMAN COURAGE ELOQUENTLY ARGUED FOR VARIOUS WORKPLACE PROTECTIONS.
WE CAN GET TO THOSE THINGS THROUGH INCENTING IN THE PROPER MANNERS AND ALLOWING OPPORTUNITY TO, TO HAVE THE DISCUSSION.
SO, UM, I JUST WANTED TO MAKE SURE I GOT IT ON THE RECORD, THAT WE HAVE TO ALSO INCLUDE THE LABOR CONVERSATION AS WELL ON HOW CAN WE GET THERE.
BUT ULTIMATELY WE HAVE TO TRUST THE BUSINESS COMMUNITY 'CAUSE WE NEED THEM.
WE CANNOT CON, YOU KNOW, CONQUER HALF OF OUR AGENDA UNLESS WE BRING THE BUSINESS COMMUNITY ON BOARD, AS PARTNERS IN THIS, TO HAVE THEM CREATE THE HOUSING, TO HAVE THEM BUILD THE BUSINESSES, TO HIRE MORE EMPLOYEES TO DO THESE THINGS.
AND WE JUST NEED TO MAKE SURE OUR DECISIONS ARE INCLUSIONARY.
TROY, IF YOU COULD JUST MAKE SURE THOSE POINTS ARE INCLUDED IN THERE, I'D BE THANKFUL FOR THAT.
AND THEN I LOOK FORWARD TO MORE DISCUSSION.
THIS IS HOW THIS, THIS ARGUMENT ABOUT WHAT KIND OF VALUES AND CITY WE'RE GONNA BE ARE GONNA GET BAKED INTO OUR POLICY, AND WE CAN HAVE NO BIGGER DISCUSSION RIGHT NOW THAN HOW IS THAT GONNA LOOK, AND HOW ARE WE GONNA WORK THAT THROUGH BUSINESS OPPORTUNITY, EMPLOYMENT, AND JOBS.
SO, AND, AND THAT INCLUDES ALL AROUND OUR
[01:15:01]
CONTRACTING.I ACTUALLY WANT TO CHAT A LITTLE BIT WITH RENEE DOMINGUEZ IF WE CAN, BECAUSE I'LL, I'LL HOLD ON TO THE, UH, THE BAKING ANALOGY AND, AND SAY THAT VALUES ARE REALLY NOT COOKED OVERNIGHT.
AND, AND TO POINT TO THAT VERY CLEARLY, UH, THE SMALL BUSINESS, UH, UH, EFFORT THAT WE PUT TOGETHER THROUGH ED, IT'S IMPORTANT TO WALK THROUGH THAT HISTORY, UH, BECAUSE I CAME INTO THE COUNCIL IN 2011 AND IT WAS ALREADY MAKING TWO YEARS PRIOR TO THAT.
UM, SO THE COOKING PROCESS, THE VALUES PROCESS IS SOMETHING THAT REALLY IS NOT, WE, WE NEVER WANT TO DO ANYTHING IN AN ECHO CHAMBER.
WE NEVER WANT TO DO ANYTHING THAT IS BEHIND CLOSED DOORS.
AND WE WANT TO POINT TO AN EXAMPLE TO SAY, WE AS A CITY COUNCIL IN PARTNERSHIP WITH THE BUSINESS COMMUNITY, IN PARTNERSHIP WITH, UH, CONTRACTORS, WANT TO HAVE THE TYPE OF CONVERSATION WHERE EVERYBODY FEELS LIKE THEY WERE INCLUDED AND INVOLVED.
SO TALK TO ME ABOUT, SO BETA, HOW LONG IT TOOK, HOW WE'VE BEEN PERFECTING IT, BECAUSE THAT VALUE, THOSE VALUES THAT YOU SEE IN RESPECT TO SMALL BUSINESS AND LOCAL BUSINESSES IS NOT SOMETHING THAT WAS THOUGHT OF AND, AND FLIPPED A SWITCH TO, TO GET TO.
UH, SO KINDA WALK US THROUGH THAT SO WE CAN UNDERSTAND IT A LITTLE BETTER.
YEAH, YOU'RE EVOKING SOME, SOME MEMORIES OF, OF WHEN, UH, CHERYL BROUGHT ME ON BOARD AND THE STRUGGLES WE HAD.
I THINK YOU'RE CHARACTERIZING IT REALLY WELL IN THAT WHEN YOU'RE APPLYING THESE PROGRAMS, GETTING BUY-IN FROM THE BUSINESS COMMUNITY IS KEY.
AND SO, UM, MUCH OF THE EARLY WORK, UH, ON ALMOST EVERY ASPECT OF S BETA WAS MET WITH A CONTINGENCY OF FOLKS WHO WERE SUPPORTIVE OF THE PROGRAM.
UH, VERY SUPPORTIVE AND PASSIONATE ABOUT ITS IMPORTANCE AND A GROUP OF INDIVIDUALS ABOUT HOW ONEROUS AND BURDENSOME IT MIGHT BE.
AND SO FROM ESTABLISHING, UM, WORK GROUPS AND PRESENTATIONS, I MEAN, I WANNA SAY WE DID OVER A PRE A HUNDRED PRESENTATIONS OVER THOSE LA THOSE TWO YEAR PERIOD TALKING ABOUT EACH ASPECT OF THE PROGRAM.
UM, IN ADDITION TO THAT, THE SBA WAS CRITICAL.
THEY WERE OUR LINK TO YOU ALL AS POLICY MAKERS ON WHAT WORKED AND DIDN'T WORK.
AND SO TO HAVE A MORE DIRECT FEEDBACK LOOP, UH, WITH SOMEONE INTERACTING WITH YOU ALL ON, YOU KNOW, WHERE YOU ALL WERE THINKING WHAT WAS IMPORTANT TO YOU ALL WAS CRITICAL.
AND THEN, UM, YOU KNOW, THERE WAS AN ARTICLE IN THE VAR REPORT LAST WEEK ABOUT THE CTA PROGRAM.
AND, YOU KNOW, ONE OF THE THINGS I HIGHLIGHTED IN THAT ARTICLE WAS THERE WAS A PROFOUND COMMITMENT BY OUR CITY LEADERSHIP, THE CITY MANAGER, AND, AND AT THE TIME, UH, THE, UM, ASSISTANT CITY, UH, MANAGER THAT I WAS REPORTING TO, AND THE COUNCIL ITSELF ON THE SUB BETA PROGRAM, THEY WERE VERY PATIENT IN THE VETTING OF THE PROGRAM AND WERE VERY COMMITTED TO THEIR RESOURCES, COMMITTED TO THE PROGRAM.
SO FROM THE VERY ONSET, I THINK THE BUSINESS COMMUNITY UNDERSTOOD THAT, YOU KNOW, WE WERE SERIOUS AND WE WERE IN IT FOR THE LONG HAUL.
AND, AND THAT WAS VERY CRITICAL.
I THINK ANOTHER IMPORTANT ASPECT OF IT THAT COULD BE VERY RELEVANT TO WHAT WE'RE TALKING ABOUT WAS WE TOOK A PHASED IN APPROACH.
ALL THE PROGRAMS, UH, ASSOCIATED WITH SUB BETA WERE NOT ROLLED OUT IN YEAR ONE.
UH, THE GOAL SETTING COMMITTEE, THE C V R AND THE MENTORSHIP PROGRAM, THOSE WERE ROLLED OUT OVER A THREE YEAR PERIOD.
AND SO THAT COMMITMENT THAT I SPOKE ABOUT WAS EXTREMELY CRITICAL IN THAT PIECES WERE MISSING, BUT WE HAD AN OVERALL VISION OF WHAT WE WANT TO ACCOMPLISH AND SUPPORT FROM OUR LEADERSHIP.
AND SO I THINK THE BUSINESS COMMUNITY SAW THAT, UH, ON THE FRONT END.
I, I MEAN, I CAN SAY A LOT MORE ABOUT THAT PROCESS, COUNCILMAN, BUT I'M HOPING JUST A HIGH LEVEL, WHAT WAS THE TIMEFRAME THAT YOU THINK IT GOT TO, TO SAY THAT WE HAD FORMALLY PASSED THE BETA FROM WHAT IT'S INCEPTION IN 2009 OR 10, PASSED IN 2011, AND THERE WAS A COUPLE OF AMENDMENTS IN IN LATE 20 11, 20 12.
IT BEGAN IN 2008 WITH THE APPROPRIATION OF DOLLARS FOR THE DISPARITY STUDY.
SO I THINK PLAINLY SPEAKING, I THINK WHAT WE'VE BEEN ABLE TO ACHIEVE, BECAUSE WE'VE BEEN REALLY COGNIZANT OF VOICES, MORE VOICES IN THE ROOM, LET'S GET AS MANY COOKS IN THE KITCHEN.
UH, AND USUALLY YOU DON'T WANT SO MUCH INPUT, BUT WE DID, AND WE WANTED TO MAKE SURE WE DID THIS RIGHT, THAT WE WENT AS SLOW AS WE MUST.
AND WHAT THAT HAS MEANT FOR US TODAY IS THAT WHEN YOU SEE THE ADVERTISING CONTRACT GO OUT FOR THE CITY, THERE ARE POINTS SPECIFICALLY OUTLINED FOR SMALL MARKETING FIRMS TO JOIN AND LEARN WHAT IT'S LIKE TO TAKE ON A BIG CITY CONTRACT.
IT IT MEANS THAT WHEN WE GO OUT TO THE CONVENTION CENTER, IT'S NOT JUST THE BIG BOYS AND GIRLS WHO GET TO APPLY FOR THAT WORK THAT THE CITY INVESTS IN.
IT'S SMALLER GROUPS THAT HAVE, HAVE, HAVE RUN SMALL RESTAURANTS THAT WANT TO GET INTO THE CATERING BUSINESS.
IT MEANS THAT WE AS A CITY VALUE, WHAT WE HOPE OUR PUBLIC DOLLARS DO, WHICH IS GROW SMALL BUSINESS, ENCOURAGE, UH, A FAIR CONTRACTING PROCESS THAT REPRESENTS THE VALUE OF SMALL BUSINESS, LOCAL BUSINESS, VETERAN-OWNED
[01:20:01]
BUSINESSES.AND I THINK THAT'S THE SAME LEVEL OF CONVERSATION WE NEED TO HAVE, UH, WHEN WE INTRODUCE NEW CONCEPTS, THINGS LIKE THE LABOR PEACE AGREEMENT OR, UH, LIVING WAGES.
BECAUSE WHAT THEY DO IS THEY CONTINUE, ONCE AGAIN, TO TALK TO OUR VALUES AND HOW WE MIGHT REPRESENT SOMETHING AS SIMPLE AS THE CONTRACTS THAT WE PUT OUT FROM THE CITY.
DO WE JUST WANT THE CHEAPEST AVAILABLE OPTION? 'CAUSE BY BAR NONE THAT'LL GET US, UH, A REALLY GREAT COST SAVINGS.
UH, WE CAN DO EVERY CONTRACT THAT WE'D LIKE AND, AND GO AFTER THE FOLKS WHO BID THE LOWEST.
AND THAT'S A VERY SIMPLISTIC WAY OF LOOKING AT IT.
WE'VE ADDED A FEW DIFFERENT ELEMENTS TO MAKE SURE THAT WE'RE SELECTING NOT JUST THE BEST, THE THE MOST QUALIFIED, THE ONE WITH THE MOST EXPERIENCE, BUT REPRESENTS A CERTAIN VALUE, WHICH IS WE WANT TO GROW SMALL BUSINESSES.
WE WANT THEM TO BENEFIT FROM TAX DOLLARS THAT ARE GOING INTO THESE BIG CONTRACTS.
SO, UM, I'LL, I'LL, I'LL USE AS AN EXAMPLE TO HELP WALK THROUGH WHAT I HOPE IS THE PROCESS THAT WE GET TO, UH, WHEN WE SUPPORT WHAT HAS BEEN THE SUBJECT MATTER THAT I THINK A LOT OF COUNCIL MEMBERS HAVE BEEN HEARING ABOUT, WHICH IS THE LABOR PEACE AGREEMENT.
HOW DO WE GET TO A POINT THAT WE CAN DISCUSS THIS IN A WAY THAT IS, IS THOUGHTFUL, THAT THAT BRINGS IN THE, THE VALID EXCHANGE THAT, THAT WOULD BRING TO THE TABLE? SO I'LL HEARKEN BACK TO 2011.
AND IN 2011 IS WHEN WE FIRST WENT OUT WITH THE CONCESSIONAIRE FOR OUR AIRPORT.
AND BACK THEN WE REALIZED SOMETHING WAS TRUE.
NOT EVERYBODY CAN COMPETE AT THE AIRPORT.
IT, IT WAS JUST 100% TRUE THAT NOT EVERY SMALL BUSINESS COULD DO WORK AT THE AIRPORT.
AND WE THOUGHT TO OURSELVES THEN, HOW DO WE ADJUST THE MATRIX? HOW DO WE ADJUST THE REQUEST FOR PROPOSALS SO THAT WE MIGHT ACTUALLY BE ABLE TO BRING IN TO OUR SAN ANTONIO AIRPORT, OUR CROWN JEWEL, OUR OUR INTRODUCTION TO OUR CITY, UH, A LOCAL FLAVOR.
AND SO WE, WE COULD NOT JUST PUT OUT AN R F P AND NOT REQUIRE IT BECAUSE WE WOULD NOT HAVE GOTTEN BACK A PROPOSAL THAT INCLUDED IT, BECAUSE THERE'S REALLY WHAT WE FOUND OUT, FOUR OR FIVE BIG PRIME CONCESSIONAIRES THAT OPERATE IN ALL AIRPORTS ACROSS THE COUNTRY.
SO IF THIS WAS A, A GAME LEFT UP TO THE DEVICES OF THE FREE MARKET, UH, WHAT WE WOULD GET WERE THE BIG PLAYERS, UH, TRYING TO DRIVE THE GREATEST PROFIT TOWARDS THEIR, THEIR COMPANY.
I'M HOST, OR I'M NAME YOUR PRIME CONCESSIONAIRE COMPANY.
IT BEHOOVES ME NOT ONLY TO, YOU KNOW, WIN THE CONTRACT, UH, BUT DO EVERYTHING I CAN TO TRY TO INCREASE THE, THE REVENUE THAT COMES TO ME AS A PRIME CONCESSIONAIRE.
WE GOT BACK AN ORIGINAL GROUP OF BIDS THAT DIDN'T INCLUDE, UH, LOCAL FROM WHAT I RECALL IN 2011.
AND WHAT WE DID IS ESSENTIALLY GO BACK AND SAY, WHAT NO, THIS CASE WE'RE GONNA REQUIRE THAT 31% OR 35% IS, IS LOCALLY CONTROLLED BY AN A B C D.
WHAT'S THE, WHAT'S THE ACRONYM HERE THAT WE USE AT THE AIRPORT THAT A B E DISADVANTAGED BUSINESS ENTERPRISE? SOME FOLKS ARE MUCH SMARTER THAN ME IN THE ROOM WHEN IT COMES TO THESE KINDS OF THINGS.
AND PART OF ME IS, AS COUNSEL, THE REST OF US ARE LEARNING HOW WE DO THESE THINGS, BUT WE HAD TO REQUIRE IT OF THEM.
AND I THINK THAT THAT IS THE REASON THAT TODAY WE HAVE A JOHNNY HERNANDEZ WHO IS OPERATING AT THE AIRPORT BECAUSE IT IS, I'M SURE HE WOULD SPEAK TO THIS EXTREMELY DIFFICULT, UH, EVEN WITH A VERY POWERFUL PARTNER LIKE HOST TO OPERATE AT THE AIRPORT.
HE WOULD TELL YOU THAT HIS FIRST YEAR OR TWO WAS HE WAS OPERATING AT A LOSS, AND HAD HE NOT HAD OTHER RESTAURANTS THAT WERE SUCCESSFUL, THAT FIRST YEAR OR TWO PROBABLY WOULD'VE SUNK HIM AS A SMALL BUSINESS.
SO I THINK IT'S IMPORTANT TO RECOGNIZE THAT WE'RE HERE AT A POINT WHERE WE'RE EVOLVING IN THE WAY THAT WE CONSIDER HOW OUR AIRPORT IS BEST RUN.
AND THE LABOR PEACE AGREEMENT WAS SOMETHING THAT I THINK WHEN YOU CONSIDER THE FOUR GROUPS WHO DO THESE BIG PROJECTS AND BID ON THESE, A LOT OF THESE CONCESSIONAIRE, THE FOUR OF THEM HAVE EXPERIENCE WITH LABOR PEACE AGREEMENTS IN OTHER PARTS OF THE COUNTRY.
SO IT, IT WASN'T AN IDEA THAT WAS COOKED UP BY, YOU KNOW, THE COUNCIL.
IT WAS THESE FOLKS BRINGING FORWARD A, IF YOU BELIEVE LOCAL FLAVOR IS IMPORTANT, WE'RE GONNA ADD IT.
IF YOU BELIEVE THE STABILITY OF WORK AND, AND, AND DISRUPTIONS IS POSSIBLE, WE'D LIKE TO OFFER A LABOR PEACE AGREEMENT.
SO IT WAS THE CASE THAT WE, WE THOUGHT TO OURSELVES, YOU KNOW WHAT? LET'S GET, LET'S GET A PROPOSAL.
AND IF INCLUDES, IT INCLUDES A LABOR PEACE AGREEMENT, THE EXCHANGE FOR THAT IS THE SORT OF PEACE OF MIND.
YOU KNOW, THAT'S NOT SOMETHING THAT WE AS COUNCIL MEMBERS ARE IN THE WEEDS ON.
WE DON'T, WE DON'T DO THESE PROPOSALS.
IT WAS THESE FOUR CONCESSIONAIRE THAT SAY TO THEMSELVES, HOW CAN I SET MYSELF APART FROM THE OTHER AND NOT JUST WILL IT HAVE A LO A LOCAL FLAVOR, BUT I MIGHT EVEN INCLUDE A LOCAL PEACE AGREEMENT.
SO THE IDEA WAS A, WAS ONE CONCEIVED BY THE MARKET.
UH, THE QUESTION WAS THE COUNCIL GETTING, UM, A SENSE OF WHAT THAT LOOKED LIKE WHEN IT FINALLY CAME TO US? SO, YOU KNOW, ALL THAT TO SAY THAT, THAT WE HAVE A CERTAIN SENSE OF, OF WHAT WE DO AS A COUNCIL.
AND THEN WE ESSENTIALLY RECEIVE FROM EXPERTS LIKE THOSE BIDDING ON THESE CONTRACTS AT THE AIRPORT, AT THE CONVENTION CENTER FOR OUR CON UH, CONSTRUCTION PROJECTS THROUGH THE BOND PROPOSAL.
AND, AND I THINK WHAT WE LOOK, WE LOOKED AT IS, IS THE LABOR PIECE AGREEMENT SOMETHING THAT WOULD BRING BACK TO US SOMETHING THAT WE VALUE? AND SO I'LL JUST BE VERY SIMPLE.
[01:25:01]
I'LL BE VERY PLAIN IN THE WAY THAT I THINK ABOUT THE VALUE THAT IS EXCHANGED FOR THE LABOR PEACE AGREEMENT.FOR ME, THE FEAR IS NOT WORK STOPPAGE.
UH, THE FEAR IS NOT, UH, A PROTEST.
THE FEAR FOR ME IS, IS WOULD WE REMOVE THE OPPORTUNITY FOR US TO GIVE A VOICE TO THOSE EMPLOYEES WHO WORK AT THE AIRPORT? AND TO SOME EXTENT, I DON'T KNOW THAT BUSINESS WELL ENOUGH.
I DON'T KNOW WHAT THE EXPERIENCE IS LIKE.
AND I THINK THERE'S FOLKS IN THE ROOM WHO COULD SPEAK TO THAT, UM, WHERE WE MIGHT PULL THE FOLKS WHO WORK AT THE AIRPORT NOW AND THEY MAY SAY THEY'RE, THEY ENJOY THEIR WORK.
THE WORK CONDITIONS ARE GREAT, THE BENEFITS ARE AWESOME.
UM, AND THAT'S PERFECT BECAUSE IN THAT EVENT, I THINK WHAT HAPPENS IS YOU DON'T, YOU DON'T GET ANY UNION THERE.
BUT AT THE SAME TIME, THE LABOR PEACE AGREEMENT WOULD'VE AT LEAST GUARANTEED THE OPPORTUNITY FOR THESE FOLKS TO HAVE A VOICE IN THAT POT POTENTIAL DISCUSSION.
UM, WE NEED TO TAKE VERY CAREFUL, UH, BE VERY CAREFUL IN THE WAY WE PROCEED ON THIS BECAUSE SPEED IS NOT OUR BEST FRIEND HERE.
I THINK WHAT WE NEED TO DO IS DO WHAT WE DID WITH THE SUB BETA.
TAKE AS MANY VOICES AS WE CAN TO UNDERSTAND THIS PROCESS, BECAUSE WHAT'S CLEAR IS THAT THE COUNCIL IS LEARNING AS MUCH AS WE CAN ABOUT, UH, A NEW CONCEPT THAT MIGHT BENEFIT THE CITY.
BUT WE ALSO CAN'T DO IT, UH, IN A VACUUM.
WE CAN'T DO IT IN EXECUTIVE SESSION.
AND SO I COMMEND THE MAYOR FOR HIS LEADERSHIP ON, ON TAKING A LOOK AT THIS AND MAKING SURE THAT WE INCLUDED AND MAYBE HAVE A VERY LEVELHEADED CONVERSATION ABOUT THE EXCHANGE OF VALUES THAT WE HAVE.
IS THIS SOMETHING THAT'S WORTH, UH, PURSUING? SO THAT WAS MY, MY MY SORT OF QUICK POINTS ON THE LABOR PEACE AGREEMENT.
IT'S NOT SOMETHING THAT I HIDE FROM IN TERMS OF A DISCUSSION THAT I WANT TO HAVE ABOUT WHAT'S THE EXCHANGE OF VALUE FOR INCLUDING IT IN A BID.
UM, BUT IT'S SOMETHING THAT I THINK IS WORTH A VERY, YOU KNOW, WELL-EDUCATED DISCUSSION ON, UH, WHICH IS, IF WE'RE PAUSING FOR ANY OTHER REASON, IT'S JUST TO MAKE SURE THAT EVERYBODY'S ON THE SAME PAGE ABOUT WHAT'S, WHAT'S AT STAKE, WHAT, WHAT, WHAT, WHAT HAPPENS IF WE DO HAVE IT, WHAT HAPPENS WHEN WE DON'T? BECAUSE IN 2011, WHEN WE ACTUALLY CHOSE THE FINAL BIDDER, WE CHOSE THE BIDDER, NOT THAT GAVE THE MOST MONEY TO THE CITY.
UH, WE CHOSE THE BIDDER THAT HAD THE BEST PROPOSAL AND THE BEST PROPOSAL THEN WAS HOST AND INCLUSION WITH JOHNNY ANA AND TRUE FLAVORS.
AND SO WE FOREGOED, YOU KNOW, MORE MONEY ABOUT 3 MILLION, ONE TO $3 MILLION THAT WOULD'VE COME TO THE CITY IN EXCHANGE FOR WHAT WE VALUED, WHICH WAS LOCAL FLAVORS.
AND, AND I REMEMBER THAT ACTUALLY THE MEETING REALLY SPECIFICALLY BECAUSE, UH, THAT WAS THE FIRST TIME WE SAW AVERY JOHNSON, WHO ACTUALLY CAME INTO THE LITTLE GENERAL, CAME INTO THE CITY COUNCIL MEETING THEN, UH, 'CAUSE HE WAS SUPPORTING THE, THE GROUP WHO CAME IN SECOND.
UM, SO AS MUCH AS I LOVE AVERY JOHNSON, HE WAS NOT PART OF THE MATRIX SCORING BID PROCESS, BUT WHAT WAS WAS THINGS LIKE LOCAL FLAVOR, THE COST, AND THE RETURN TO THE CITY.
UM, AND THEN WE CAN MAKE A JUDGMENT BASED ON HAVING ALL THE CRITERIA IN FRONT OF US.
SO, UM, I'M GLAD THAT WE'RE, WE'RE LOOKING AT THE PROCUREMENT PROCESS.
SO I'LL JUST TOUCH VERY QUICKLY ON THE PIECE THAT I, I MENTIONED AT THE TOP WAS A PART OF THE C C R THAT I SUBMITTED, MAYOR, THE, UH, LIVING WAGES, THIS DOES NOT APPLY TO ALL CONTRACTS.
IN FACT, UH, TROY, IF YOU CAN HELP ME, YOU, YOU WERE ACTUALLY, YOU MADE ME SMARTER ON THIS.
YOU SAID EVEN IF WE TRY TO DO LIVING WAGES REQUIREMENTS, UH, WE WOULDN'T BE ABLE TO DO IT.
SO I SAID, YOU KNOW WHAT, LET'S PUT THAT ASIDE.
LET'S NOT DO LIVING WAGE REQUIREMENTS WHERE WE CAN'T DO THAT ON A SPECIFIC CONTRACT.
BUT YOU SAID THE CONCERN THAT, THAT I'M HEARING IS IN SOME CASES THE, THE CITY IS PRIVATIZING TOO MUCH OF ITS WORK.
UH, IT'S THE BAGGAGE CLAIMS AT THE AIRPORT, OR NAME YOUR INCIDENT WHERE THE CITY MIGHT WANNA CREATE A SAVINGS.
THERE'S WAYS TO DO THAT WITH THE PRIVATE SECTOR, BUT THERE'S WAYS TO DO THAT WITHOUT ALSO, UH, SHORT-CHANGING THE WORKER OR THE EMPLOYEE.
SO TELL ME VERY CLEARLY, IF YOU CAN REPEAT BACK TO ME WHAT WE REMEMBER, WHAT, WHAT, WHAT WE DISCUSSED WHEN YOU SAID THIS CAN'T APPLY TO ALL.
IF WE ADDED A SCORING MATRIX TO AT LEAST JUST DISCLOSE WHAT FOLKS WERE MAKING.
IT'S DIFFICULT BECAUSE OF DIFFERENT BENEFITS, PACKAGE, DIFFERENT COSTS AND SALARIES.
SO TALK TO ME ABOUT WHAT WE CAN AND CAN'T DO HERE.
'CAUSE I WANNA BE VERY CLEAR ON IT.
IT'S A, IT'S A SIMILAR DISCUSSION AS WE'VE HAD ON LOCAL PREFERENCE AND WHERE IT'S APPLICABLE AND WHERE IT'S NOT.
IT'S THE SAME THING WHEN YOU'RE TALKING ABOUT LIVING WAGES.
DOES IT, THE QUESTION ACTUALLY BECOMES, DOES IT BECOME OUR IMPACT, THE QUALITY OF THE SERVICE OF THE PRODUCT THAT WE'RE RECEIVING? AND SINCE THIS IS TYPICALLY GONNA BE APPLIED IN AREAS THAT ARE COVERED BY STATUTE, IT BECOMES VERY DIFFERENT, DIFFICULT TO ESSENTIALLY PUT A POINT PREFERENCE FOR LIVING WAGES.
SO WHAT WE HAD DISCUSSED IS IN ORDER TO PROVIDE A, PROVIDE A, UM, INCENTIVE OR TO PROVIDE, UM, TO HIGHLIGHT THE LIVING, THE WAGE AND THE BENEFITS IS WHEN OUR EVALUATIONS, WHEN WE'RE TALKING ABOUT PROPOSED PLAN, WE WOULD ACTUALLY REQUEST FROM THE RESPONDENTS THE WAGES THAT ARE BEING PROVIDED TO THEIR EMPLOYEES WORKING ON CITY CONTRACTS, UM, AT DIFFERENT LEVELS OF THEIR EMPLOYEES.
THEY WOULD PROVIDE US WITH THEIR BENEFITS AND WE WOULD LOOK AT THAT.
ONE OF THE CHALLENGES THAT WE HAVE, ESPECIALLY WHEN IT COMES TO BENEFITS AND ANALYZING THAT THERE'S SO MANY VARIATIONS OF BENEFIT PLANS WITHOUT HA, WITHOUT HAVING AN ACTUARIAL STUDY TO ACTUALLY TELL YOU THE COST OF THAT OR THE BENEFIT TO THE EMPLOYEE, IT
[01:30:01]
BECOMES VERY DIFFICULT TO ACTUALLY ANALYZE THAT.SO WE WOULD REQUEST THE INFORMATION, UM, WE WOULD PROVIDE IT TO THE EVALUATION COMMITTEE FOR CONSIDERATION, AND THAT WOULD PLAY INTO THE PROPOSED PLAN AND THE SCORING THAT OUR EVALUATION COMMITTEES HAVE CONTROL OVER.
TROY, I THINK THAT'S REALLY HELPFUL AND, AND YOU'VE BEEN, UM, EDUCATING ME ON MAKING SURE THAT WE'RE NOT MOVING TOO FAST ON THAT.
AND I THINK WE'RE NOT MAKING A DECISION HERE, BUT WE'RE AT LEAST BRINGING IT FORWARD FOR THE FIRST HALF OF A SECOND TWO PART DISCUSSION IN WHICH WE'LL, UH, LOOK AT WHAT'S POSSIBLE IN THAT SPACE.
BUT, UH, I'M GLAD THAT WE'RE AT LEAST TALKING ABOUT SOMETHING AS CRITICAL AS THESE BIG VOTES BECAUSE, UM, I WILL NOT LIE TO YOU, THESE ARE THE MOST CONTROVERSIAL, THESE ARE THE MOST, YOU KNOW, HEADLINE GRABBING THINGS THAT WE DO SOMETIMES AS THESE BIG CONTRACTS WE LET OUT THE RADIO CONTRACT WILL BE A VERY GOOD EXAMPLE OF THAT.
UM, AND SO IT'S MAKING, IT'S MAKING SURE THAT WE ARE WELL-INFORMED ON WHAT WE CARE ABOUT AND MAKING SURE THAT THAT'S REPRESENTED IN THE SCORING MATRIXES, UH, THAT WE PUT OUT.
BECAUSE THE POLITICS ARE THE POLITICS AND WE CAN INSERT AS MUCH POLITICS AS WE'D LIKE.
BUT THAT'S THAT, WHAT THAT LEAVES US WITH IS PROBABLY NOT CHOOSING BASED ON THE BEST QUALITY OF THE VALUES THAT WE HAVE.
MAIN, NAMELY SUPPORT A SMALL BUSINESS SUPPORT OF LOCALS AND, AND SUPPORT OF REALLY THE BEST, THE BEST PERSON WHO'S PUTTING THEIR BEST FOOT FORWARD IN FRONT OF A INDEPENDENT EVALUATION COMMITTEE.
I, I DO NOT WANNA STRESS THAT.
I, I CANNOT STRESS THAT, STRESS THAT EXAMPLE MORE.
I, I'VE SEEN THINGS GET POLITICAL.
I'VE SEEN COUNCIL MEMBERS TRY TO WEIGH IN WHERE WE SHOULDN'T BE WEIGHING IN BECAUSE WE, WE KNOW SOMEBODY WHO MIGHT BE CLOSE TO THE WORK OR WE JUST FRIENDS WITH FOLKS.
BUT WE NEED TO BE ABLE TO BE, TO BACKSTOP ON, ON A FAIR PROCESS.
AND IT, WE DO NO FAVORS TO THE BUSINESS COMMUNITY.
UH, WE DO NO FAVORS TO THE CONTRACTING COMMUNITY TO SAY THAT WE'VE GOT FAVORITES AND, AND WE DO A BETTER SERVICE TO THOSE WHO ARE APPLYING TO KNOW THAT IT'S FAIR THAT THE, THE, THE PLAYING FIELD IS LEVEL AND YOU WON'T BE SHORTCHANGED WHEN IT COMES TO THE COUNCIL BECAUSE YOU KNOW, YOU'VE GOT SOMEBODY ON YOUR BOARD THAT WE DISLIKE.
UM, AND I THINK THAT'S INCREDIBLY IMPORTANT FOR US TO MENTION AND TALK ABOUT WHEN WE'RE TALKING ABOUT PROCUREMENT BECAUSE WE'RE TRYING TO THE BEST EXTENT THAT WE CAN REMOVE THE POLITICS FROM THESE DECISIONS.
AND ALL WE DO IS, IS SET UP THE RULES OF THE GAME.
AND ONCE THE RULES OF THE GAME ARE ESTABLISHED, WE LET EVERYBODY PLAY A FAIR TAKE A FAIR SHOT SHOT AT THAT.
SO MAYOR, I APPRECIATE THAT WE'RE HAVING THIS CONVERSATION AND THOSE ARE THE ONLY COMMENTS I'VE GOT.
AND UH, TROY, I NEVER GET TO SEE YOU ANYMORE 'CAUSE I'M NOT ON THE INVESTMENT COMMITTEE, SO IT'S GREAT TO SEE YOU.
UM, AND I'M GLAD WE'RE HAVING THIS CONVERSATION BECAUSE IT IS VERY TIMELY.
AND I WANT TO BE CLEAR TOO THAT, UM, AS WE'RE TALKING ABOUT ALL OF THESE THINGS, I WANNA TALK ABOUT SMALL BUSINESSES, I WANNA TALK ABOUT PROCUREMENT AND I ALSO WANT FOR US TO REALIZE THE POLITICAL PROCESS AND THE POLITICAL GAME OF THESE RFPS.
AND THESE BIDDINGS DON'T JUST HAPPEN AT A COUNCIL LEVEL, IT HAPPENS IN THE WHOLE BIDDING PROCESS AS WELL.
UH, PEOPLE ARE CONSTANTLY BEING, UM, PEOPLE EVEN IN THE EVALUATION COMMITTEES HAVE FRIENDS OR THIS OR THAT.
SO I MEAN, WE HAVE TO BE TRANSPARENT AND COGNIZANT OF THAT AS IT HAPPENS ON ALL LEVELS.
BUT BESIDES THAT FACT, UM, I WANT TO TALK ABOUT THE EVALUATION POINTS, UM, ON, UH, WHEN WE'RE TALKING ABOUT, ACTUALLY NO, SLIDE NUMBER 11, IF WE CAN GO TO SLIDE NUMBER 11.
SO I SEE THESE TOTAL AWARDED VALUES.
ONE OF THE QUESTIONS THAT I HAVE WHEN WE'RE GOING TO PROCUREMENT AND TOTAL AWARDS VALUES.
DO WE ALSO HAVE A, UM, DO WE ALSO HAVE THE NUMBERS OF THOSE ARE THE AWARDS? YES, MA'AM.
BUT WHEN IT COMES TO, UH, CHANGE ORDERS, SO, UM, WE HAVE AN AWARD THAT THE R F P COMES OUT WITH MM-HMM.
BECAUSE I'M WONDERING, AND, AND, UM, RENEE, DOES THAT GO INTO THE, THE DOLLARS THAT YOU HAVE IN THE CE BETA, THE PROJECTIONS EVEN THAT INCLUDES THE, THE CHANGE ORDERS THAT ARE GIVEN TO, TO THE COMPANIES? YEAH, IT'S A LITTLE DIFFERENT IN THAT WE ARE JUST RECORDING PAYMENTS.
WE WANNA SEE ACTUAL UTILIZATION RATES.
SO WE, I SEE OUR SYSTEM'S CONNECTED DIRECTLY TO S A P.
AND WE ARE REGISTERING UTILIZATION NUMBERS BASED ON PAYMENTS NOT AWARDS.
BECAUSE I THINK THAT'S ONE OF MY QUESTIONS.
YEAH, I WOULD JUST ADD THAT PAYMENTS WOULD INCLUDE CHANGE ORDERS, ABSOLUTELY.
SO IT WOULD INCLUDE THE ACTUAL CONTRACT AS WELL AS ANY CHANGE ORDERS THAT ARE APPROVED BY THE COUNCIL.
AND SO, BUT IS THAT WHAT'S, UM, HERE IN THE AWARDED VALUE, INCLUDING THE CHANGE ORDERS? YEAH, THIS WILL INCLUDE ANY AMENDMENT TO A CONTRACT THAT WENT THROUGH CITY COUNCIL.
SO ANYTHING THAT Y'ALL APPROVED IS INCLUDED IN HERE.
[01:35:01]
FOR US TO KNOW TOO, EVEN A HISTORY OF WHAT WAS THE ORIGINAL BIDS OR ORIGINAL WARDS AND THEN THE NUMBER OF THE, THE CHANGE ORDERS.AND SO THAT'S ONE OF THE THINGS THAT I, I WOULD LIKE TO SEE.
UM, I WOULD ALSO BE CURIOUS TO KNOW WHERE THE SAVINGS ARE, WHERE ARE THE, THE, UM, DIFFERENCES BETWEEN WHEN WE DO DESIGN BUILD AND WHEN WE ALSO DO JUST THE, UM, YOU KNOW, THE PACKAGE DEALS TOO, I GUESS.
'CAUSE I THINK WHEN T C I, I SAW MIKE FRISBEE SOMEWHERE, I'D LIKE TO KNOW ABOUT THE SAVINGS THAT WE'VE DONE.
UM, I GUESS IN COMPARISON OF SOMETHING IN THE PAST, LET'S TAKE THE CONVENTION CENTER.
'CAUSE WE DID THE CONVENTION CENTER DESIGN BUILD THIS TIME AROUND AND BEFORE IT WAS DIFFERENT.
AND HAVE WE LOOKED AT THE D THE SAVINGS THAT WE'VE HAD TO THE COMMUNITY? MIKE OR CHERYL? I, LET ME JUST START BY SAYING YES AND WE CAN PROVIDE THOSE NUMBERS.
WE DON'T HAVE THEM HERE TODAY, BUT GENERALLY SPEAKING, WE'VE HAD MUCH BETTER EXPERIENCE WITH DESIGN BUILD THAN UNDER THE OLD MODEL OF INDEPENDENT DESIGN AND THEN BIDDING IT AND THEN CHANGE ORDER, CHANGE ORDER, CHANGE ORDER, AND THEN LITIGATE, LITIGATE, LITIGATE.
UH, SO THIS GETS THE DESIGNERS AND THE CONTRACTORS RIGHT.
WORKING TOGETHER FROM THE VERY BEGINNING AND A GUARANTEED MAXIMUM PRICE.
AND IN FACT WE'VE ONLY BEEN DOING DESIGN BUILD, UH, FOR A FEW YEARS IN SAN ANTONIO.
AND SO, UH, WE CAN SHOW YOU BEFORE AND WHAT HAPPENED.
AND THEN NOW WHAT HAS HAPPENED, IN FACT, THERE WAS LITIGATION ON THE CONVENTION CENTER IN THAT FIRST EXPANSION MM-HMM.
AND SO YES, WE'D BE HAPPY TO SHARE THAT WITH YOU BECAUSE I JUST WANNA SEE HOW WE CAN MAYBE LOOK AT IT EFFICIENCIES IN THE FUTURE MOVING FORWARD.
AND I THINK THAT'S SOME OF THE THINGS.
SO DESIGN BUILD WOULDN'T NECESSARILY SAVE DOLLARS, BUT THE PURPOSE OF DESIGN BUILD IS YOU GO FASTER EFFICIENCIES AND YOU HAVE A MORE COHESIVE TEAM TO WORK WITH.
SO YOU END UP WITH A BETTER PRODUCT GENERALLY.
BUT EVERY PROJECT'S A LITTLE DIFFERENT.
I, I'LL JUST SLIGHTLY LITIG DISAGREE WITH MY CITY ENGINEER IN THAT YOU DO HAVE A DESIGN BUILD A GUARANTEED MAXIMUM PRICE.
AND SO, SO WE CAN'T CHANGE ORDER FOREVER.
UM, WHEN WE'RE TALKING ABOUT, UH, WHEN WE'RE TALKING ABOUT GOAL SETTING.
THE GOAL SETTING COM COMMITTEE.
'CAUSE I HAVE HAD SOME CONVERSATIONS WITH, UH, CERTAIN, CERTAIN INDIVIDUALS WHO ARE GOING FORWARD WANTING CONTRACTS AND ABOUT THE GOAL SETTING COMMITTEE.
AND WHEN THOSE GOALS ARE SET MM-HMM.
IS THAT A WEEK OR IS THAT A COUPLE OF DAYS? DO WE HAVE A STANDARD AND DO WE HAVE A STANDARD OF WHAT THAT TIME PERIOD IS? OR IS IT DIFFERENT FOR EACH CONTRACT? I'D SAY IT'S DIFFERENT FOR EACH CONTRACT, BUT WHAT I WILL SAY IS THE GOAL SETTING PROCESS IN NO WAY SHOULD DISRUPT THE AMOUNT OF TIME, UH, THAT THE ORIGINATING DEPARTMENT INTENDS TO, TO RELEASE IT AND PUT IT ON THE STREET FOR REVIEW.
THE GOAL, SAME PROCESS, THE REVIEW OF THAT SCOPE, THE CHECK OF AVAILABILITY, AND THE ESTABLISHMENT OF GOALS ARE DONE WAY ON THE FRONT END OF THE PROCESS.
BUT MICHAEL, DO YOU ACTUALLY HAVE A A, A TIMEFRAME IN WHICH IT HAPPENS? IT'S ABOUT TWO WEEKS FOR STAFF.
IT'S ABOUT TWO WEEKS FOR STAFF REVIEW TO HAVE THIS GOAL SETTING COMMITTEE.
AND AS SOON AS WE APPLY THESE GOALS TO THESE SOLICITATIONS, WE HAVE A COORDINATOR WHO WILL ACTUALLY, UH, FORMULATE A NEWSLETTER AND BLAST THAT INFORMATION OUT TO OUR VENDOR SO THEY CAN START PREPARING IN ADVANCE FOR THE SOLICITATIONS AND KNOW WHAT SUB BETA TOOLS WE SET ON THOSE PROJECTS.
AND SO WHEN THAT GOES OUT TO OFFICIALLY R F P AND PEOPLE CAN START SUBMITTING THEM, UM, DO WE HAVE THAT TIMELINE OR WHEN THEY'RE, THEY'RE DONE, DO WE HAVE ANYTHING UNIFORM TO THAT EFFECT OR ARE THE, THE, THE BIDDERS, THE CONTRACTORS ARE JUST CONSTANTLY HAVING TO GUESS OR BE ON THEIR TOES IN TERMS OF OUR SUB BETA PROGRAM, BECAUSE OF THIS GOAL SETTING COMMITTEE AND BECAUSE WE LOOK AT REAL TIME DATA, UM, EACH AND EVERY TOOL ON A PROJECT DIFFERS.
SO IT'S HARD TO SAY IN ADVANCE BEFORE WE GET THAT FULL BREAKDOWN OF SCOPE FROM THE DEPARTMENT, WHAT EXACTLY WE'RE GONNA APPLY TO THAT PARTICULAR, UH, SOLICITATION.
SO YEAH, WE'RE, UH, ONE THING WE'RE DISCUSSING IS THE AMOUNT OF TIME THAT THE R F P IS RELEASED
[01:40:01]
IS BASED ON THE PROCUREMENT PROCESS AND THE REGAINED DEPARTMENT.SO THAT'S ALL DETERMINED OUTSIDE OF THE SUB BETA PROCESS OR PIECES DONE ON THE FRONT END.
I DON'T KNOW IF YOU WANNA ELABORATE ON THAT, BUT I THINK THAT'S SOMETHING THAT I WOULD LIKE TO LOOK AT MORE OF, OF, DO WE HAVE AN OPPORTUNITY TO MAKE IT MORE UNIFORM SO PEOPLE KNOW WHAT TO EXPECT WHEN, UH, THE ORIGINATING DEPARTMENT IS DOING SOMETHING AND THE A BETA PUTS THE GOALS AND THEN IT'S TURNED AROUND WITH THE R F P.
IF WE CAN HAVE SOME SORT OF CERTAINTY OF TIMELINE, I THINK THAT WOULD BE HELPFUL FOR ALL OF THE SMALL, THE LARGE EVERYBODY WHO'S WANTING TO DO CONTRACTING.
SO I'D LIKE FOR US TO TAKE THAT INTO CONSIDERATION OR LOOK AT EFFICIENCIES, IF YOU WILL.
ONE OF THE OTHER, AND MAYBE YOU CAN HELP ME THIS AND MAYBE, UH, RENEE, I'VE BEEN GETTING, UM, YOU KNOW, PEOPLE HAVE COME OUT AND REACHED OUT TO ME AND ASKED ME LIKE, HOW ARE WE MAKING SURE THAT SMALL BUSINESSES ARE GETTING EXPERIENCE HERE IN SAN ANTONIO AND THEY DON'T HAVE TO NECESSARILY GO OUT OF TOWN IN ORDER TO GET EXPERIENCE AND THEN COME BACK IN SAN ANTONIO TO, UM, BID AS, AS A SUB OR A, A PRIME ARE.
'CAUSE OUR SUB BETAS, OUR SUB BETA ORDINANCE IS DIFFERENT AND NOT EVERYBODY IN THE CITY OF SAN ANTONIO HAS, OR NOT EVERYBODY IN THE STATE OF TEXAS HAS THE POINT SYSTEM THAT WE DO.
SO ARE WE, IS THIS HELPING OR ENHANCING OR GETTING PEOPLE EXPERIENCE? 'CAUSE I'M HEARING THAT FIRMS OR OTHER GROUPS HAVE TO GO OUTSIDE OF SAN ANTONIO TO GET THE EXPERIENCE BEFORE THEY CAN COME BACK TO SAN ANTONIO AND ACTUALLY BID ON A, ON A PROJECT OR ON A CONTRACT OR AN AWARD.
I MEAN THAT HAS A LOT BUNDLED AROUND IT.
WHAT I WOULD SAY IS THAT THAT IS ONE OF THE PRIMARY PURPOSES OF THE PREFERENCE POINTS WHEN WE RELEASE DISCRETIONARY CONTRACTS.
THE OTHER THING I WOULD POINT TO WOULD BE OUR MENTOR PROTEGE PROGRAM IN THAT IT'S VERY COMMON THAT PROTEGES WITH LESS EXPERIENCE ARE TEAMED WITH, UH, MENTORS THAT ARE FAR MORE EXPERIENCED TO KIND OF TEACH 'EM THE INS AND OUTS.
BUT IN ADDITION TO THAT, ALTHOUGH NOT A REQUIREMENT, UH, A LOT OF TIMES THOSE MENTORS UTILIZE THOSE PROTEGES IN THEIR BID UH, SOLICITATIONS.
AND, UM, I DO WANT TO JUST TALK ABOUT, YOU KNOW, I THINK WE DO HAVE OPPORTUNITY HERE AND I'M GLAD WE'RE HAVING THIS CONVERSATION TO CREATE, I THINK AS COUNCILMAN BROCK HOUSE MENTIONED, TO CREATE A PATH WITH ALL OF COUNCIL CONSIDERATION IN THESE, THESE PROCESSES THAT WE HAVE.
UH, COMING FORWARD, UM, TO THE LAST SLIDE WITH YOUR RECOMMENDATIONS OR YOUR NEXT STEPS, UM, I WOULD SAY THAT, UM, I KNOW I'VE, UH, BEEN TALKING TO YOU ALL AND I WANNA THANK, I KNOW LEONARD IS HERE AND WE'VE TALKED ABOUT THE RESPONSIBLE BIDDER ORDINANCE.
AND I'M, I'M VERY MUCH IN AGREEMENT THAT WE NEED TO CONTINUE TO LOOK AT THIS RESPONSIBLE BIDDER ORDINANCE AND HOW IT CAN BE A PART OF THIS PROCESS.
I'M HOPING THAT AS WE MOVE FORWARD, WE DO HAVE ALL OF THE STAKEHOLDERS AND ALL OF, UM, THE PARTIES INVOLVED TO HAVE THIS CONVERSATION BECAUSE, UM, YES, AS I MENTIONED BEFORE, I THINK COUNCIL IS ONE OF THE MOST IMPORTANT PARTS OF THIS PROCESS AS WE'RE GOING THROUGH THE RFPS AND THE AWARDING OF CONTRACTS.
'CAUSE WE ARE, UM, WE ARE ONE OF THE MOST IMPORTANT PARTS OF THIS, THIS, UM, THIS PROCESS AND AWARDING OF CONTRACTS.
AND I THINK YES, WE NEED TO GIVE A VOICE, UM, TO EVERYONE INVOLVED WHO'S PART OF THESE PROCESSES, BUT IF, UM, WE HAVE TO CREATE A PATH OR AN OPPORTUNITY TO HEAR THESE VOICES, BECAUSE ACTUALLY THERE ARE SOME VOICES THAT WE CAN'T EVEN HEAR RIGHT NOW IN PARTICULAR ABOUT THE AIRPORT CONCESSIONS BECAUSE THE RFPS OUT.
SO WE CAN'T HEAR FROM CERTAIN VOICES THAT MAYBE WE WOULD LIKE TO HEAR FROM.
UM, WE AS THE COUNCIL, THE ENTIRE COUNCIL COMMITTEE.
SO I THINK THAT'S VERY IMPORTANT.
AND I ALSO WANT TO THANK THE WORK OF, UM, ALL OF OUR, OUR COMMUNITY MEMBERS WHO ARE HERE TODAY AND UNITE HERE, WHO HAS WORKED VERY HARD AND I'M GLAD TO HAVE WORKED WITH THEM IN THE PAST, INCLUDING SUPPORTING THE, THE GRAND HYATT BOYCOTT THAT THEY DID HAVE DURING THE TIP CAMPAIGN AND, UM, REQUESTING, I DON'T KNOW IF SOMEONE FROM THE HISPANIC CHAMBERS HERE, BUT, UM, MOVING THE HISPANIC CHAMBER GALA ONE YEAR TO A DIFFERENT LOCATION BECAUSE OF THEIR BOYCOTT THAT THEY WERE DOING AT THE GRAND HYATT.
AND SITTING IN, WORKING IN SOME OF THOSE BARGAINING SESSIONS WITH UNITE HERE WITH, UM, TO LET THEM KNOW THAT I, I WAS THERE.
AND ALSO ALL OF THIS WAS MEANINGFUL TO LET THEM KNOW, TO BE OPEN AND TO LET THEM KNOW THAT AT LEAST ONE COUNCIL MEMBER AT THE TIME
[01:45:01]
WAS THERE, UM, TO SHOW UP.AND IT'S IMPORTANT TO SHOW UP.
UM, BUT ALL OF THIS IS IMPORTANT FOR US TO HEAR AND TALK ABOUT THE SAN ANTONIO WORKER AND THE, THE LABOR PEACE AGREEMENT IS AN IMPORTANT ISSUE.
AND IT MAY OR NOT BE BE THE RIGHT THING TO DO RIGHT NOW FOR THE WORKERS IN THIS CASE.
BUT THE PROBLEM IS THAT WE DON'T KNOW BECAUSE WE'RE NOT HAVING THAT OPEN DIALOGUE THAT WE NEED TO HAVE AND WE'RE NOT GETTING THE ANSWERS OF THE MOST BASIC QUESTIONS OF WHAT IMPACT.
'CAUSE I HEAR FROM ONE SIDE OF THE COMMUNITY THAT L P A IS GOING TO IMPACT SMALL BUSINESSES AND NOT BE ABLE TO HAVE THE FLEXIBILITY AND THE NIMBLENESS THAT THEY HAVE WITH THEIR COMMUNITY AND WITH THEIR EMPLOYEES.
BUT I HEAR FROM THE OTHER SIDE OF THE WORKERS OR, OR THE UNION, THAT THIS IS NO BIG DEAL, THAT IT'S A STANDARD OPERATING PROCEDURE AND MANY OTHER CITIES DO IT.
WHAT I NEED TO KNOW, UM, IN AN OPEN DIALOGUE WITH, UM, COUNCIL FROM MY CITY ATTORNEY AND REVIEW OF EVERYTHING THAT'S IN A LABOR PEACE AGREEMENT, WHAT IS IT THAT WE'RE GONNA BE VOTING ON? SO, UM, WHAT I DO KNOW IS THAT WE NEED TO GET THIS RIGHT, ESPECIALLY IF WE'RE GOING TO BE TALKING ABOUT OUR BUSINESSES AND OUR WORKERS AND THE STATE OF OUR WORKERS IN SAN ANTONIO, ESPECIALLY THE MEN AND WOMEN THAT WE EXPECT TO WORK 24 HOURS A DAY PRACTICALLY AT OUR AIRPORTS AND IN OUR CITY.
UM, AND LOST IN THIS WHOLE CONVERSATION ABOUT HELPING BUSINESSES AND SUPPORTING OUR ECONOMY IS A DISCUSSION TO SUPPORT THE SAN ANTONIO WORKERS.
SO I WANNA MAKE SURE, UM, THAT WE HAVE THAT CONVERSATION AND, UH, THAT WE HAVE THE OPPORTUNITY TO HAVE THE OPEN CONVERSATION WITH EVERYTHING.
BECAUSE ONE THING THAT WE DO KNOW HOW TO DO IN SAN ANTONIO REALLY WELL IS TO COLLABORATE AND TO COLLABORATE IN A LOT OF DIFFERENT AREAS, I THINK OF THE DIFFERENT THINGS THAT WE'VE HAD TO ACCOMPLISH AS A CITY TOGETHER TO MAKE IT BETTER.
AND I THINK THIS IS A WAY WHERE WE CAN HAVE A WIN-WIN, WIN SITUATION FOR ALL OF US.
SO WITH THAT, I AM GOING TO, UM, SUPPORT STAFF'S RECOMMENDATION AND MAKE SURE THAT WE DO COORDINATE WITH THE STAKEHOLDERS.
COUNCILWOMAN VIRON, COUNCILWOMAN GONZALEZ.
THANK YOU COUNCILWOMAN FOR SUCH GREAT QUESTIONS AND, UM, SUCH A GREAT COMMENTARY.
UM, YOU ADDRESS MANY OF THE CONCERNS I HAD TOO, SO I'LL JUST, I'LL TRY TO KEEP THEN MY, MY QUESTIONS, UH, THOSE THAT SHE DID NOT ADDRESS, UM, IN HER REMARKS.
SO I, I HAVE SOME QUESTIONS, YOU KNOW, SPECIFICALLY ABOUT THE AIRPORT CONTRACT.
CAN I ASK THOSE TODAY OR DO THOSE NEED TO BE DEFERRED TO A LATER DATE BECAUSE OF, UM, COUNCILWOMAN WILL DO OUR BEST TO ANSWER YOUR QUESTIONS TODAY.
UH, RUSS HANDY IS HERE, OUR AVIATION DIRECTOR AND, UH, TROY CAN HELP ANSWER THE QUESTIONS AS WELL.
SO IF I, IF I CROSS ANY LINES, I'M SURE Y'ALL WILL LET ME KNOW, BUT, UM, UH, BECAUSE I THINK, YOU KNOW, THIS CAME UP BECAUSE OF THIS PARTICULAR CONTRACT, SO I JUST, I HAD SOME QUESTIONS JUST REGARDING HOW MANY EMPLOYEES ARE AT THE AIRPORT, HOW MANY EMPLOYEES ARE, ARE, WHEN YOU ASK HOW MANY EMPLOYEES ARE YOU TALKING ABOUT? NUMBER OF EMPLOYEES EMPLOYED BY THE PRIME CONCESSION FOR THIS PARTICULAR BID? UH, YES.
AND, AND ALSO JUST AIRPORT EMPLOYEES WHOM ARE CITY EMPLOYEES WHO, UH, HAVE THE WAGE OF THE 1475 THAT WE APPROVED LAST YEAR.
SO CITY EMPLOYEES INCLUDING SHARED SERVICES, UH, I'M SORRY, CITY EMPLOYEES, UH, INCLUDING SHARED SERVICE AS THAT NUMBER IS ABOUT 470.
AND THEN, YOU KNOW, ACROSS THE AIRPORT CAMPUS AND BUSINESSES THAT INTERACT WITH THE AIRPORT, THE NUMBER'S ABOUT A HUNDRED THOUSAND OVERALL JOBS.
AND, UM, FROM A CONCESSIONS PERSPECTIVE, I'D HAVE TO GET YOU THAT NUMBER.
WHEN HE SAID 100,000, THAT INCLUDES ALL THE AIRLINES BAGGAGE HANDLING, THAT'S NOT EVERYTHING THAT TOUCHES THE AIR AIRPORT, THAT'S NOT JUST CON CONCESSIONS.
WE'D HAVE TO GET THAT BREAKDOWN FOR YOU.
AND, UH, BUT UH, I WAS MOSTLY THINKING OF THE ONES THAT WE EMPLOY IN THE CITY.
'CAUSE I KNOW THAT, UM, YOU KNOW, I, MY QUESTION IS REGARDING WAGES, RIGHT? IT'S ABOUT FOUR.
A MANDATORY, UH, WAGE OR RATHER, UM, MINIMUM WAGE.
UH, AND SO EVERYBODY THAT WORKS AT THE AIRPORT THAT'S A, AN EMPLOYEE OF THE CITY OF SAN ANTONIO MAKES AT LEAST 1475 AN HOUR.
IS THAT, IS THAT RIGHT? AND THAT'S ABOUT 470 PEOPLE? YES.
UM, AND, UH, AND YOU SAID THERE WERE OVER HOW MANY HUNDRED, A HUNDRED THOUSAND THAT WORK IN? WELL, AND, AND THAT, THAT'S A BROAD NUMBER.
AND I, I WANNA MAKE SURE I'M CLEAR ON THAT.
THAT INCLUDES EVERYONE THAT, THAT WORKS AT THE AIRPORT OR IN A BUSINESS THAT DIRECTLY SUPPORTS THE AIRPORT.
THAT'S THE OVERALL ECONOMIC IMPACT, IF YOU WILL.
I WOULD HAVE TO GET YOU THE BREAKDOWN OF
[01:50:01]
THE, OF A SPECIFIC SECTOR OF THAT.THAT'D BE AIRLINES, CAR RENTAL AGENCIES, ANY BUSINESS, UM, THE, UH, FIXED BASED OPERATORS, CORRECT.
PRIVATE BUSINESS AIRCRAFT THERE THAT PROVIDE SERVICES TO THE COMPANIES AND TAXI.
AND, AND SO DO WE KNOW HOW MANY PEOPLE WE'RE TALKING ABOUT THAT WOULD BE INVOLVED IN, UH, IN A CONCESSIONS CONTRACT? AS I SAY, TO GET YOU AN ACCURATE NUMBER, I'D HAVE TO GO BACK AND, AND LOOK AT THAT.
SO, UM, UH, I GUESS ANOTHER QUESTION, UM, YOU KNOW, THAT WE HAD, UH, SO REGARDING COUNCILMAN'S C C R FOR THE REQUEST FOR LIVING WAGES, UM, UM, WAS THAT ADDRESSED? WAS THAT WHEN YOU IN, IN INITIATED YOUR C C R, WAS THAT ALREADY ADDRESSED WHEN WE INCREASED THE WAGES OR IS THERE SOMETHING DIFFERENT THAT WAS REQUESTED IN THE C C R THAT WE DIDN'T ADDRESS WHEN WE INCREASED WAGES? THE, THE C C R IS GONNA BE, HAS A DIFFERENT FOCUS.
IT'S GONNA BE FOCUSED MORE ON OUR, ON OUR CONTRACTS AND THE EMPLOYEES THAT WE CONTRACT, THE VENDORS THAT WE CONTRACT WITH.
THE, THE LIVING WAGE THAT, THAT WE'RE TALKING ABOUT IS FOR THE CITY EMPLOYEES.
BUT WE'RE ACTUALLY TALKING ABOUT THE COUNCILMEN C C R IS GONNA BE ADDRESSED THROUGH THE CONTRACTS THAT WE ARE, THE INDIVIDUALS OR COMPANIES THAT WE CONTRACT WITH AND THE EMPLOYEES THAT, UM, ARE EMPLOYED BY THOSE CONTRACTORS.
SO IS IS THAT THEN PART OF THE AIRPORT CONTRACT THAT WE'RE TALKING ABOUT AS WELL? OR IS THAT STILL A SEPARATE ISSUE? IT'S GONNA BE AN ISSUE THAT WE'RE GONNA PROVIDE RECOMMENDATIONS AND HAVE A MORE IN-DEPTH DISCUSSION ON NEXT WEEK, OR WE'RE GONNA GET, UM, COUNCIL POLICY INPUT AND DIRECTION AS FAR AS HOW Y'ALL WOULD PROCEED, WOULD LIKE TO PROCEED.
AND WE'LL PROVIDE RECOMMENDATIONS WITH RESPECT TO THAT AS WELL.
UM, SO I, I THINK MAYBE I WILL RESERVE MOST OF MY QUESTIONS FOR NEXT TIME.
'CAUSE I THINK THEY'RE MOSTLY IN REGARDING TO THE SPECIFIC CONTRACT.
SO, YOU KNOW, I WAS ON HIGH PROFILES AUDIT COMMITTEE FOR SOME TIME.
UM, AND, UH, I, I RECOGNIZE THE NEED FOR, UM, DISCRETION IN SOME OF THE CONTRACTING, BUT AT THE SAME TIME, THEN IT OFTEN WOULDN'T ALLOW US TO ASK THE QUESTIONS THAT WE NEEDED TO ASK.
UM, AND YOU KNOW, WHEN WE SEE, UM, ONLY, UH, WE DON'T GET TO SEE A WHOLE PICTURE, WE ONLY GET TO SEE, WE SEE A NUMBER HERE OR THERE.
UH, AND, UM, IT, I JUST FEEL LIKE IT DIDN'T PAINT A WHOLE PICTURE OF THE SERVICES THAT WERE BEING PROVIDED.
AND I THINK THAT'S COME UP A COUPLE OF TIMES.
UM, AND I KNOW THAT, YOU KNOW, I FOR ONE, HAVE ALWAYS BEEN A PROMOTER OF SMALL BUSINESS.
IN FACT, I MEAN, I'M BEFORE YOU, UH, ON THE COUNCIL BECAUSE OF SOME ISSUES THAT I HAD AS A SMALL INDEPENDENT BUSINESS OPERATOR MYSELF, THAT I THOUGHT THE CITY MADE IT VERY DIFFICULT FOR SMALL BUSINESSES TO SUCCEED.
AND SO, UM, I I TAKE VERY SERIOUSLY WHEN THERE'S A LOT OF BARRIERS TO ENTRY, ESPECIALLY FOR SMALL BUSINESSES.
AND I BELIEVE THAT WE'VE ADDRESSED THAT IN MANY WAYS, UM, WITH THE CETA INITIATIVES.
UH, BUT THEY'RE JUST SO COMPLICATED.
UH, AND, AND SO EVEN, YOU KNOW, YEARS AND YEARS OF SITTING HERE AND I USED TO SIT ON THE SBA, UM, THAT WAS MY FIRST, UH, SORT OF INTRODUCTION INTO CITY POLICY.
UH, AND IT WAS VERY CONFUSING THEN.
AND THAT WAS, OH MY, IT COULD HAVE BEEN MORE THAN 10 YEARS AGO, NO MORE, MAYBE 15 YEARS AGO, WHENEVER IT, IT WAS A LONG TIME AGO.
UH, AND STILL I REMEMBER AT THAT TIME BEING VERY CONFUSED AND STILL HERE YEARS LATER, IT CAN BE COMPLICATED.
SO, UM, IT'S NOT THAT I DON'T THINK THE PROCESS IS, IS OPEN AND TRANSPARENT, I JUST THINK IT'S COMPLICATED.
AND SO IT'S HARD TO SEE SOMETIMES IF OUR SMALL BUSINESSES ARE IN FACT REALLY BENEFITING UNLESS YOU GIVE SPECIFIC EXAMPLES OF COMPANIES THAT HAVE, UM, BENEFITED.
AND SOMETIMES YOU DO, UH, GIVE US EXAMPLES OF COMPANIES THAT HAVE BENEFITED.
UM, BUT I THINK THE MORE THAT WE CAN SHOW EXAMPLES OF HOW IT'S SUCCESSFUL VERSUS JUST SHOWING US NUMBERS AND SHOWING US HOW THE, HOW WE'VE IMPROVED FROM A PERCENTAGE, UH, IT MIGHT BE, UH, GOOD TO KNOW, UH, HOW WE'VE IMPROVED, UH, PERHAPS IN DIFFERENT SECTORS OR DIFFERENT INDUSTRIES WHERE WE CONTINUE TO REQUIRE IMPROVEMENT.
SO I THINK I'LL PERHAPS RESERVE MOST OF MY COMMENTS FOR NEXT TIME AS WE DISCUSS, YOU KNOW, SORT OF SPECIFICALLY THE, UH, THE ISSUE AT THE AIRPORT.
'CAUSE THAT'S, I KNOW WHAT HAS COME UP AND WE HAVE HEARD, UH, FROM DIFFERENT, UM, ENTITIES ABOUT PERHAPS HOW WE COULD DO THIS BETTER.
AND, AND, YOU KNOW, EVEN NOT INCLUDED IN THIS WAS, UM, SMALL BUSINESSES THAT ARE NOT PART OF THE, UM, CONCESSIONAIRES AND HOW WE ADDRESS THOSE, UH, AT THE AIRPORT AS WELL.
SO I WILL, I THINK WE'LL LEAVE IT AT THAT.
[01:55:01]
YOU, MAYOR.COUNCILMAN PAL, MA MAYOR, COULD I CORRECT ONE THING THAT WAS SAID JUST FOR FACTUAL PURPOSES? SO YOU MENTIONED, UH, THE MINIMUM WAGE FOR CITY EMPLOYEES, WHICH INCLUDED AND APPROVED BY THE COUNCIL AS A POLICY MATTER AND THE BUDGET IS 1425 AND THIS YEAR'S BUDGET, UM, WITH OUR TWO YEAR BALANCE BUDGET APPROACH, THEN TO GO TO $15 IN THE FISCAL YEAR 19 BUDGET.
1425 IS WHAT CURRENTLY IS THE MINIMUM STARTING WAGE FOR THE LOWEST PAID CITY EMPLOYEE TODAY.
AND THAT WE'D GO TO $15 NEXT YEAR IN FISCAL YEAR 19.
UM, SO I'M SITTING HERE LISTENING TO EVERYTHING, UH, THAT, THAT YOU'VE PRESENTED TO US AND, AND YOU'VE DONE A VERY THOROUGH JOB.
UM, AND I, I DON'T ENVY YOU 'CAUSE YOU'RE GONNA BE STANDING UP THERE FOR A LONG TIME.
AND THAT IS, OUR PHONES HAVEN'T STOPPED RINGING OFF THE HOOK.
OUR, IN OUR EMAIL BOXES ARE FULL.
I DIDN'T KNOW THERE WERE SO MANY SAN ANTONIOS THAT KNEW MY CELL PHONE NUMBER AND CAN TEXT ME.
UH, FACEBOOK IS NOW SOMETHING I HATE, UH, EVEN OPENING.
UM, AND I'M GETTING, YOU KNOW, HIT FROM ALL SIDES, RIGHT? I'M GETTING HIT FROM THE ESTABLISHED BUSINESS COMMUNITY, RIGHT? AND I'M GETTING HIT FROM MY FRIENDS AT THE LABOR, UH, COMMUNITY, AND I'M GETTING HIT FROM, YOU KNOW, MY OWN CONSTITUENTS AND HOMEOWNERS THAT ARE READING THIS STUFF IN THE NEWSPAPER AND REALLY NOT KIND OF UNDERSTANDING WHY THIS SHOULD MATTER TO THEM.
AND, UM, AND SO, YOU KNOW, I'M, I'M REMINDED, UH, AS I, I JUST KEEP REVISITING THIS AND TALKING IT THROUGH WITH, WITH MY KIDS AND MY FAMILY.
AND, AND LAST NIGHT I WAS TELLING MY KIDS ABOUT, UM, IT, AND IT MAY BE AN URBAN MYTH, BUT THE STORY OF A GUY BY THE NAME OF WINSTON LORD, HE USED TO BE THE AMBASSADOR OF CHINA.
AND, UH, RICHARD NIXON AND HENRY KISSINGER USED TO HAVE HIM WRITE ALL THEIR SPEECHES HAVING TO DO WITH CHINA AND KISSINGER IS, WAS A RUTHLESS, RUTHLESS BOSS.
AND SO, YOU KNOW, ON ONE OCCASION, UH, WINSTON LORD TURNS IN HIS, HIS SPEECH TO KISSINGER, AND KISSINGER SAYS, IS THIS THE BEST WORK THAT YOU'VE EVER DONE? AND, UH, HE SAYS, WELL, BOSS, UM, I THINK SO, BUT LET ME, LET ME GO BACK AND TRY AGAIN.
AND SO HE TRIES AGAIN, SHOWS, SENDS HIM HIS SECOND DRAFT, AND KISSINGER CALLS HIM AND SAYS, HEY, LISTEN, GOT YOUR SECOND DRAFT.
DO YOU THINK THIS IS THE BEST WORK YOU'VE EVER DONE? AND HE SAYS, OKAY, BOSS, I'LL TAKE ANOTHER LOOK.
RIGHT? AND HE TAKES A THIRD LOOK, KISSINGER DOES IT AGAIN, A FOURTH.
KISSINGER DOES IT AGAIN, A FIFTH, THE SIXTH AND THE EIGHTH.
AND FINALLY ON THE NINTH TIME, KISSINGER SAYS, IS THIS THE BEST WORK YOU'VE EVER DONE? AND THE GUY EXPLODES AND HE SAYS, HENRY, I'VE RACKED MY BRAIN AND, YOU KNOW, AND REALLY CRACKED IT OPEN.
I CANNOT POSSIBLY IMPROVE UPON THIS.
EVERY SINGLE WORD IS NEEDS TO BE THERE IN THAT ORDER.
AND THIS IS THE BEST DAMN WORK I'VE EVER DONE.
AND KISSINGER SAYS, OKAY, WELL THEN I'M FINALLY READY TO READ IT.
AND, UM, YOU KNOW, THAT, AND AGAIN, IT'S, IT MAY NOT BE TRUE AND GOD FORBID ANY, ANY OF US EVER HAVE A RUTHLESS BOSS LIKE THAT.
BUT IT, THE TAKEAWAY FROM THAT, AND WHAT I TELL MY KIDS IS THAT WHEN YOU KNOW, WHEN YOU DO THE WORK AND YOU'RE DOING IT FOR SOMEBODY ELSE, THAT YOU HAVE TO MAKE SURE THAT YOU ARE COMFORTABLE AND THAT YOU CAN LOOK IN THE MIRROR KNOWING THAT YOU DID THE BEST WORK YOU COULD DO.
RIGHT? AND SO THE QUESTIONS THAT I'VE BEEN GETTING FROM MY CONSTITUENTS AND ALL OF YOU IN THIS ROOM ARE CONSTITUENTS, UM, INCLUDE, WELL, WHAT DOES A WINNING BID LOOK LIKE IF YOU'VE GOT AN L P A COMPONENT TO IT, AND IF YOU'VE GOT A NON L P A COMPONENT TO IT, LIKE, WHAT ARE THE WINNING CRITERIA? AND MY ANSWER IS, WELL, I, I DON'T KNOW.
AND, UH, THEY SAID, OKAY, WELL, HAVE YOU SPOKEN TO THE LOCALLY OWNED BUSINESSES THAT ASPIRE TO DO BUSINESS AT THE AIRPORT, UH, WITH, YOU KNOW, AS SUBS FOR THESE, UM, THESE PRIMES THAT MY BID AND MY ANSWER TO THEM WAS, WELL, NO, I, I, I DIDN'T DO THAT EITHER, RIGHT? UM, HAVE YOU SPOKEN TO AIRPORT EMPLOYEES WHO MAY BE CLAMORING FOR THIS? AND I SAID, WELL, I HAVE TO ADMIT, I'VE, I'VE YET TO HEAR FROM A SINGLE AIRPORT EMPLOYEE.
UM, AND I HAVEN'T DONE THAT YET, BUT THAT'S SOMETHING I, I COULD DO.
UM, WELL, HAVE YOU BENCHMARKED HOW SOMETHING LIKE THIS WORKS AT OTHER AIRPORTS? NO, I, I, I HAVEN'T.
UH, DO YOU KNOW IF THERE'S CONSENSUS AMONG COUNCIL FOR MOVING FORWARD ON THIS AND WELL, NOT, NOT REALLY.
BUT, YOU KNOW, UH, IF YOU SQUINT YOUR EYES AND TILT YOUR HEAD, IT MIGHT LOOK LIKE A LITTLE CONSENSUS THERE.
AND, UM, AND YOU KNOW, IF YOUR IDEAS ARE SO GOOD, AND IF YOUR FELLOW COUNCIL MEMBERS' IDEAS REGARDING THEIR POSITION ON LABOR FOR OR AGAINST ARE SO GOOD, WHY DO YOU WANNA DENY US THE OPPORTUNITY TO HEAR THEM? INSTEAD, YOU GUYS JUST SHARE THEM WITH EACH OTHER AND EXECUTIVE SESSION.
AND THE ANSWER TO EVERY ONE OF THOSE IS, I DON'T KNOW.
[02:00:01]
I DON'T KNOW.AND THIS WAS MY KISSINGER MOMENT BECAUSE I FINALLY REALIZED, MAN, YOU KNOW, I HAD AN OPPORTUNITY TO DO A MUCH BETTER JOB HERE.
AND SO, UM, A LOT OF YOU SAW ME PUT OUT, YOU KNOW, A A COMMENT SAYING, I'M, I'M ALL FOR TALKING ABOUT THIS.
I'M I FOR TALKING IT TO DEATH, RIGHT? AND FOR COMING UP WITH A FIRST TO SECOND, A THIRD, A FOURTH, AND UP TO A NINTH DRAFT UNTIL WE GET IT RIGHT.
'CAUSE I'D RATHER GET IT RIGHT THAN GET IT FAST, RIGHT? AND SO WITH THAT, I'LL, I'LL TELL YOU, UM, THAT, THAT'S ALL SAY ON, ON THE LABOR, YOU KNOW, AGREEMENT.
AND I'M NOT SAYING I'M FOR OR AGAINST IT.
I'M JUST TELLING Y'ALL, YOU KNOW, WHEN THAT MANY PEOPLE SAY, WELL, WAIT A SECOND, THERE'S TOO MANY QUESTIONS, THERE'S A PROBLEM WITH TRANSPARENCY, THEN IT'S INCUMBENT UPON US TO PULL THE BRAKES AND SAY, YOU KNOW, EVEN IF WE DISAGREE WITH THAT RIGHT, THEN, YOU KNOW, CLEARLY THEIR, THAT'S THEIR STRONG AND FIRMLY HELD BELIEF.
WE NEED TO PULL THE BRAKES AND BE MORE TRANSPARENT.
ULTIMATELY, YOU'RE THE CUSTOMER, RIGHT? EVERYBODY IN THIS ROOM IS THE CUSTOMER.
SO WITH THAT, UM, I'M, I'M IN FAVOR OF PULLING THE BRAKES AND TALKING THIS THING UNTIL EVERYBODY IS SATISFIED THAT WE'VE TALKED IT THROUGH AND THAT WE'VE ANSWERED EVERY QUESTION AND CHECKED ALL THOSE BOXES WITH THE UNDERSTANDING THAT AT SOME POINT DOWN IN THE FUTURE, WE'RE GONNA MAKE A DECISION THAT IS GONNA MAKE SOMEONE UNHAPPY AND SOMEONE WHO'S NOT.
BUT AT THE VERY LEAST, NOBODY WILL BE ABLE TO SAY THAT WE WEREN'T TRANSPARENT ENOUGH AND THAT WE DIDN'T TALK IT THROUGH.
THE SECOND THING IS, IS I, I DID ASK EARLIER ABOUT, UH, INCUMBENT WORKER PROGRAM OR AN INCUMBENT WORKER CLAUSE, CHERYL.
UM, AND FOR THOSE OF YOU THAT THAT DON'T KNOW, UM, THE HISPANIC CHAMBER DID A REALLY GOOD JOB AT SENDING OVER, UM, AN EXAMPLE OF WHAT SAN DIEGO'S AIRPORT DID WITH AN INCUMBENT WORKER CLAUSE WHERE THEY, UM, YOU KNOW, TOLD THEIR CONCESSIONAIRE THAT THE CONDITION TO DOING BUSINESS WITH SAN DIEGO WAS THAT YOU GIVE PREFERENTIAL TREATMENT TO INCUMBENT WORKERS WHO'VE EARNED THE, YOU KNOW, EARNED THE STRIPES AND THAT HAVE, YOU KNOW, GOT THEIR SECURITY CLEARANCE AND HAVE EXPERIENCE AND HAVE GOOD RELATIONSHIPS WITH THE OTHER FOLKS AT THE AIRPORT.
AND SO, YOU KNOW, GOING FORWARD, THAT'S, IT'S SOMETHING I'LL BE LOOKING FOR, RIGHT? UM, FOR THIS AND FOR OTHER MAJOR CONCESSION AGREEMENTS, RIGHT? I MEAN, INCUMBENT WORKERS, I, I, YOU KNOW, I BELIEVE HAVE EARNED ARE, ARE WORTHY OF THE CONFIDENCE, UH, JUST BY THE VERY NATURE THAT THEY'VE BEEN THERE A WHILE.
UM, AND IT'S GOOD FOR US, IT'S GOOD BUSINESS, IT'S PEOPLE YOU DON'T HAVE TO RETRAIN AND, UH, YOU KNOW, THEY KNOW, UH, WHAT WORKS AND WHAT DOESN'T.
SO I, I'D REALLY LIKE TO ENCOURAGE US TO, TO CONSIDER THAT.
AND THEN AS FAR AS THE RESPONSIBLE BITTER ORDINANCE, I DIDN'T KNOW UP UNTIL A FEW MONTHS AGO WHAT THE HECK THIS WAS UNTIL IT WAS BROUGHT TO ME BY, UM, BY SOME OF MY FRIENDS AND I, WE STARTED LOOKING INTO IT.
AND, YOU KNOW, THIS IDEA THAT CITY COUNCIL IS, UM, BEHOLDEN TO THIS PRINCIPLE THAT IF IT'S THE LOWEST BID, THEN YOU MUST AWARD THE LOWEST BID BECAUSE, YOU KNOW, IT IS TAXPAYER MONEY.
I, I THINK THAT THAT'S MISGUIDED IF YOU'RE NOT ALSO CALCULATING IN THERE THAT YOU, YOU KNOW, YOU'RE ALSO HIRING SAN ANTONIANS.
THAT WE WILL BE SAN ANTONIANS, YOU KNOW, UP ON THE CATWALKS, ON THESE SCAFFOLDINGS, UM, YOU KNOW, SAN ANTONIANS ARE THE ONES WHO HAVE TO WEAR, UM, YOU KNOW, HARD HATS.
SAN ANTONIANS ARE THE ONES THAT, YOU KNOW, THEIR BACKS ARE GONNA BLOW OUT AND THEY'RE GONNA HURT THEIR KNEES AND, YOU KNOW, GET WORKPLACE INJURIES.
AND SO I THINK THAT REALLY WHAT WE OUGHT TO DO IS ERR ON THE SIDE OF AWARDING THESE CONTRACTS TO THE LOWEST RESPONSIBLE BIDDER, WHICH IS WHY I PUT FORTH THIS IDEA OF THE RESPONSIBLE BIDDER ORDINANCE.
AND I REALLY WANT US AS A COUNCIL TO, TO DIVE DOWN AND REALLY, UH, CONSIDER WHETHER OR NOT THIS IS RIGHT FOR A SAN ANTONIO THAT SAYS WE'RE COMPASSIONATE, RIGHT? AND, UH, SAN ANTONIO THAT SAYS THAT WE DO HONOR, UM, YOU KNOW, THE WORK THAT WORKERS DO AND THE SWEAT THAT THEY PUT INTO IT.
AND SO FOR THOSE OF YOU WONDERING WHAT THE HECK IS PLY IS TALKING ABOUT WITH RESPONSIBLE BID ORDINANCE, WHAT I'M LOOKING FOR ARE BIDDERS THAT PRICE A PREMIUM ON EXPERIENCE WORKERS THAT PLACE A PREMIUM ON, YOU KNOW, FOLLOWING ALL THE OSHA RULES THAT PLACE A PREMIUM ON SIMPLE THINGS LIKE EQUAL EMPLOYMENT OPPORTUNITY AND ALL THAT.
BUT MORE IMPORTANTLY, THAT HAVE A PROVEN TRACK RECORD OF BEING HONEST PLAYERS.
AND SO I WOULD LOOK FORWARD TO SEEING AN ORDINANCE THAT DISSUADES A BIDDER WHO'S GOT A HISTORY OF RIPPING OFF EMPLOYEES AND HAS BEEN SUED MULTIPLE TIMES AND HAS LOST IN COURT FOR RIPPING OFF HIS OWN EMPLOYEES, RIGHT? OR A BIDDER WHO HAS BEEN SLAMMED TIME AND TIME AGAIN BY THE E E O C FOR DISCRIMINATING AGAINST PEOPLE.
UM, I THINK WE, AS PART OF OUR DUE DILIGENCE, NEED TO NOT JUST LOOK AT EACH OTHER AND SAY, WELL, YOU KNOW, WE'VE DONE BUSINESS WITH 'EM IN THE PAST AND WE'VE ALWAYS HAD SUCCESS.
I THINK WE NEED TO GO FURTHER.
WE CAN DO, I MEAN, IT'S NOT THAT HARD ANYMORE TO FIGURE OUT WHO'S BEEN SUED AND WHERE, RIGHT? I MEAN, KHAW IS, IS A PRETTY GOOD LAWYER FROM WHAT I HEAR.
UH, BUT, UM, HE, UH, YOU KNOW, IT'S NOT HARD FOR HIM IF HE WANTED TO, AS PART OF THE LITIGATION, TO GO TO A DATABASE AND SAY, HOW MANY TIMES HAS THIS COMPANY BEEN SUED? WHAT HAVE THEY BEEN SUED FOR? AND WHAT IS THE OUTCOMES OF THAT? WE DO THAT WHEN WE HIRE EMPLOYEES TO COME WORK FOR US AT THE CITY.
I THINK THAT WE OUGHT TO BE DOING SOMETHING LIKE THAT FOR WHEN WE HIRE PEOPLE TO DO MULTIMILLION DOLLAR PROJECTS FOR US, AND THAT WE SPEND OTHER PEOPLE'S MONEY.
SO, I, I REALLY DON'T HAVE A QUESTION OTHER
[02:05:01]
THAN JUST TO URGE YOU TO KEEP MY COMMENTS IN MIND AS YOU MOVE FORWARD AND TO KNOW THAT, YOU KNOW, AS WE MOVE FORWARD, I'M GONNA HOLD YOU ACCOUNTABLE TO, TO REALLY BE ROBUST AND ZEALOUS WITH, YOU KNOW, PUSHING FORWARD AND LEANING FORWARD AND TRYING TO ACCOMPLISH THOSE THINGS I'VE JUST LISTED.COUNCILMAN PALAI IS COUNCILMAN TREVINO.
UM, THANK YOU FOR THE PRESENTATION.
UM, I THINK THERE'S BEEN SOME GREAT COMMENTS ALL AROUND.
I'LL, I'LL START, I'LL JUST START WITH SOME OF MANNY'S, UM, COMMENTS ABOUT RESPONSIBLE BIDDER.
I, I, I THINK THAT THAT IS SOMETHING WE DEFINITELY WANT TO EXPLORE AND, YOU KNOW, I I, I CIRCLED HERE WHAT WE, WHAT WE COMMENTED ABOUT DESIGN BUILD, JUST AS AN EXAMPLE.
UM, THERE'S A LOT OF NUANCE TO DESIGN BUILD VERSUS DESIGN, BID BUILD.
AND I, ESPECIALLY BECAUSE WE HAVE VERY DIFFERENT PROJECTS.
AND SO THIS IS, THIS REALLY IS WHY WE'RE HAVING THIS CONVERSATION.
'CAUSE UM, WE HAVE TO UNDERSTAND WHAT IS IT THAT WE'RE DOING AND HOW THAT'S GONNA IMPACT THE ACTUAL CONTRACT AND THE, THE, THE BUSINESSES THAT ARE ASSOCIATED WITH THOSE CONTRACTS.
UH, WE COULD, WE COULD DO OURSELVES A A LOT OF GOOD WORKING WITH A LOT OF OUR, UH, COMMUNITY PARTNERS, BUSINESS PARTNERS, CHAMBERS OF COMMERCE, TO REALLY GET A BETTER UNDERSTANDING OF WHAT ALL THIS MEANS.
UM, SO, SO CERTAINLY I, I APPLAUD THE EFFORTS ON, ON THE RESPONSIBLE BIDDER.
'CAUSE AGAIN, I, I WOULD JUST POINT OUT, UM, DESIGN BUILD IS, IS GOOD IN CERTAIN CASES, CERTAIN CASES, UH, DESIGN BID BUILD IS STILL THE, THE, THE INDUSTRY STANDARD.
AND I THINK REALLY WARRANTS A LOT OF DISCUSSION.
I THINK WE COULD DO AN ENTIRE B SESSION ON THE PROCUREMENT OF THAT, THOSE TWO STYLES REGARDING OUR PROJECTS, BECAUSE, UH, IT'S, YOU KNOW, WE WANT TO, WE, WE NEED TO UNDERSTAND HOW DO, HOW DO SMALL BUSINESSES, HOW ARE SMALL BUSINESSES AFFECTED BY THOSE TWO DIFFERENT TYPES OF CONTRACTS? AND I THINK WE COULD LEARN A LOT ABOUT THAT.
SO I JUST, UH, WANNA MAKE THOSE COMMENTS BECAUSE, UM, UH, CERTAINLY I KNOW MY, UH, DESIGN FIELD COLLEAGUES, UH, WOULD, WOULD BE REMISS IF, IF, OR I WOULD BE REMISS IF, IF MY, IF I DIDN'T MENTION THAT TO MY COLLEAGUES, WOULD CERTAINLY SAY A FEW THINGS.
AND I KNOW THERE'S A COUNCIL MEMBER WHO, WHO MIGHT HAVE A FEW WORDS ABOUT THE SAME THING.
UM, SO, YOU KNOW, RENE, IF I CAN HAVE YOU COME UP WHILE WE'RE ON THE SUBJECT OF DESIGN PROFESSIONS, AND WE WORKED VERY HARD ON THE CE BETA MM-HMM.
AND, UM, IT'S PARTICULARLY DEVELOP DIFFERENT CATEGORIES AND HELP TO KIND OF, UH, ACKNOWLEDGE THAT, THAT THERE REALLY IS A LOT OF, A LOT OF THINGS WE MUST CONSIDER BECAUSE, BECAUSE THERE'S, THERE'S JUST A WHOLE LOT OF NUANCE AND DIFFERENT PROJECTS REQUIRE DIFFERENT METHODOLOGIES.
TELL US, TELL US HOW WE IMPROVE SUB BETA FOR DESIGN PROFESSIONALS IN THE CONSTRUCTION INDUSTRY IN GENERAL.
UM, WELL, ONE THING, YOU KNOW, THE ENHANCEMENT MADE, AND MICHAEL, I MIGHT NEED SOME HELP ON THIS ONE, BUT THE ENHANCEMENTS MADE IN, UM, 2015 REALLY SORT OF STARTED ADDRESSING WHERE WE MIGHT FIND ADDITIONAL OPPORTUNITY.
KEY TO ALL OF THIS IS REALLY THE DATA, RIGHT? WHAT ARE WE ACHIEVING? AND THEN WHERE ARE THOSE GAPS? WHERE ARE THOSE AREAS FOR IMPROVEMENT? SO WE'RE FORTUNATE WITH SO BETA TO BE ABLE TO ACKNOWLEDGE THAT ONE OF THOSE AREAS WAS, UM, EMERGING, UH, SMALL BUSINESSES, THE DEFINITION OF SMALL BUSINESS COUNCILMAN BROCK HOUSE, TO YOUR POINT, WHAT IS A SMALL BUSINESS THAT'S VERY DEFINED BY S B A SCI STANDARDS? BUT FOR US IN SAN ANTONIO, AND THROUGH THE, UH, PUBLIC ENGAGEMENT PROCESS THAT WE WENT THROUGH, WE DISCOVERED THAT THERE'S A BIG DISTINCTION BETWEEN, YOU KNOW, WHAT IS A SMALL BUSINESS.
AND VERY INTENTIONALLY, THIS COUNCIL WANTED US TO START DRILLING DOWN A LITTLE ON THAT.
AND WE CREATED A, A SEGMENT OF SMALL BUSINESS CALLED EMERGING SMALL BUSINESS, WHICH BY DEFINITION MEANS ONE FOURTH BASICALLY THE SIZE OF A SMALL BUSINESS, BECAUSE IN SOME CASES, SMALL BUSINESSES BASED ON EITHER REVENUE OR NUMBER OF EMPLOYEES CAN BE RATHER LARGE.
AND SO, UM, THAT IS SOMETHING THAT WAS ENHANCED IN 2015, THE IDEA OF SPREADING THE, UH, BENEFIT OF SUB BETA TO A SUB-SECTOR OF SMALLS.
AND THAT IS THOSE SMALLS AS, AS COUNCILWOMAN VIA GRAND BROUGHT OUT THAT DON'T HAVE THE EXPERIENCE THAT ARE, YOU KNOW, MICRO BUSINESSES.
AND SO, UM, SOME OF THE TOOLS THAT WE APPLY AND EVALUATE DURING THE GOAL SETTING PROCESS, COUNCILMAN,
[02:10:01]
TO YOUR POINT, WHAT ARE SOME OF THE CHANGES IS TO START APPLYING POINTS AND, AND TARGETING THE VERY SMALL AND IN A AND E IN PARTICULAR, I THINK THAT'S WHERE YOU'RE GOING WITH THIS.EACH INDUSTRY IS ALSO DIFFERENT IN A AND E AND IN ARCHITECT AND ENGINEERING INDUSTRY.
A SMALL BUSINESS COULD BE A ONE MAN, TWO MAN SHOP.
AND HOW DO WE START DRIVING OUR, UH, BENEFIT TO THOSE INDIVIDUALS? SO, UH, TO MAKE A, A LONG STORY SHORT, THERE ARE SPECIFIC TOOLS THAT WE PUT INTO PLACE IN 2015 TO ADDRESS EITHER SPECIFIC INDUSTRIES THAT ARE DIFFERENT OR SPECIFIC SIZES THAT WOULD BE DIFFERENT WITHIN THOSE INDUSTRIES, LIKE A AND E.
AND I CERTAINLY, I APPRECIATE THAT.
AND, AND I JUST WANNA POINT OUT THAT WE DID THAT COLLABORATIVELY WITH A LOT OF INDUSTRY PARTNERS.
AND, AND I THINK THAT'S BEEN PART OF THE, THE, THE SUCCESS THAT WE'VE SEEN IS THAT WE'VE, WE'VE BEEN VERY INCLUSIVE OF SOME OF THAT DIALOGUE OF, OF OUR INDUSTRY PARTNERS.
UM, AGAIN, A LOT HAS BEEN SAID ABOUT OUR PROCUREMENT PROCESS.
I WOULD, I WOULD JUST, UH, WRAP UP.
I BY, UH, TALKING ABOUT, UH, THE L P A, UM, YOU KNOW, I THINK, I THINK SOME OF THE QUESTIONS THAT WE NEED TO ASK OURSELVES MOVING FORWARD, UH, MAYBE THIS IS TROY, UM, IS, IS AS, AS WE LOOK AT THIS, UM, AGAIN, AS WE SET UP ANYTHING, WE'RE ALWAYS, WE ALWAYS, WE ALWAYS WANNA MAKE SURE THAT WE ARE TALKING TO AS MANY INDUSTRY PARTNERS AS POSSIBLE.
AND I THINK, UH, COUNCILMAN BELAY HAS MADE A, A LOT OF GREAT POINTS ABOUT, UH, MAKING SURE THAT, YOU KNOW, WE'VE, WE'VE, WE'VE GOT THE METRICS WE'VE MEASURED, WE'VE COMPARED TO OTHER FOLKS, BUT, UM, I THINK WE NEED TO, WE NEED TO TAKE A CLAR CAREFUL, UH, EXAMINATION OF UNDERSTANDING, UH, WHAT, WHAT COULD BE SOME OF THE RAMIFICATIONS, UM, OF A, OF AN R F P THAT INCLUDES CERTAIN, CERTAIN REQUIREMENTS AND, UH, AND LEARN ABOUT THAT IN A, IN A CONTRACTING PROCESS.
AND I THINK THAT'S, THAT'S WHAT YOU'RE HOPEFULLY HEARING TODAY, RIGHT? I MEAN, THE, THE REALITY IS, IS THAT, UM, THERE, THERE'S SOME, SOME SERIOUS CONCERNS, UH, ABOUT, UH, INCLUDING SOMETHING LIKE THIS IN AN R F P AND, AND WHAT, WHAT ARE THE RAMIFICATIONS, UH, WITH, WITHIN OUR INDUSTRY, WITHIN THE INDUSTRIES THAT WE'RE PRODUCING THOSE RFPS? WHAT HAVE YOU HEARD? UM, WE REALLY HAVEN'T BEEN COMMUNICATING WITH THE INDUSTRY ON THE R F P.
I MEAN, WE ISSUED THE ADDENDUMS, UM, AND WE HAVE A PRE-SUBMIT CONFERENCE THAT WILL BE, THAT WILL BE SCHEDULED, BUT AS OF TODAY, I DON'T THINK WE'VE HAD THAT PRE-SUBMIT CONFERENCE.
AND SO WE HAVE NOT REALLY HAD ANY INPUT FROM THE INDUSTRY AS OF YET, AT LEAST BEING CITY STAFF INPUT, FORMAL INPUT THROUGH A PRE-BID CONFERENCE.
WE'VE HAD LOTS OF INPUT, I MEAN, PEOPLE ASKING ABOUT IT.
BUT MOVING FORWARD, I THINK WHAT WE'RE SAYING, SO TODAY'S RECOMMENDATION IS TO, TO PULL MM-HMM.
THE RECOMMENDATION IS TO PULL THE LABOR PEACE AGREEMENT REQUIREMENT FROM THE R F P.
WE'D ISSUE AN ADDENDUM SAYING THAT'S NO LONGER A REQUIREMENT.
SO MOVING FORWARD THOUGH, OUR, IN, IN FUTURE RFPS, WE'RE TALKING ABOUT MAKING SURE THAT WE'RE, WE'RE, WE'RE TALKING TO OUR INDUSTRY PARTNERS AND GETTING A BETTER UNDERSTANDING OR MORE ROBUST DISCUSSION ABOUT THOSE PARTICULAR RFPS.
IS IS THAT, UH, WELL, YES, BUT WHAT WE'RE SUGGESTING IS THAT THERE'S A BROADER POLICY CONVERSATION WITH THE COMMUNITY AND THE COUNCIL, UM, ON BOTH SIDES OF THE ISSUE BEFORE A DECISION IS MADE, THAT WE WOULD INCLUDE LABOR PEACE AGREEMENTS IN ANY RFPS, THIS ONE, OR, OR ANY OTHERS.
AND SO WHAT VEHICLES WOULD, WOULD WE USE FOR THAT? WOULD WE, WOULD THERE BE SOME KIND OF A TASK FORCE? WOULD WE, WOULD WE CREATE A BROADER DISCUSSION? HOW WOULD WE, HOW DO WE DO THAT? ANY OF THOSE OKAY.
AND WE'LL PRESENT SOME OPTIONS TO YOU NEXT WEEK IF THE COUNCIL WANTS TO CONTINUE THE CONVERSATION ABOUT LPAS AND WHETHER OR NOT THEY'RE CONSIDERED GOING FORWARD.
WELL, I THINK, I THINK IT IS CRITICAL THAT WE UNDERSTAND WHAT, WHAT SOME OF THOSE RAMIFICATIONS ARE.
AND I REALLY, WE NEED TO LEARN MORE ABOUT WHAT, WHAT THAT MEANS, UH, BEFORE WE INCLUDE THEM IN AN OVERALL R F P.
UH, GETTING BACK TO THE, UH, THE CONTRACTING METHODS, I'M VERY HAPPY TO SEE THAT, UH, UH, WE'RE GONNA WORK ON THE, UH, VETERAN OWNED BUSINESSES AND, AND GETTING THOSE IMPLEMENTED, BUT, UH, ARE WE GOING TO GET THAT BACK IN OUR LEGISLATIVE PROCESS? IT MADE IT ALL THE WAY TO THE GOVERNOR THIS LAST TIME, AND IT GOT VETOED.
[02:15:01]
MEAN THAT WE GOTTA START ALL OVER WITH THAT? UM, LAST TIME WE FOCUSED ON THE LOCAL, WE DID NOT ADD THE VETERANS IN THERE.IF THE COUNCIL WANTED TO INCLUDE THAT AS PART OF THEIR, THE, UM, THE I G R AND THEIR LEGISLATIVE PROCESS, WE COULD PURSUE THAT AND WE WOULD BE STARTING FROM SCRATCH, ESSENTIALLY.
UH, THAT'S WHAT I WOULD REALLY LIKE TO SEE, UH, ON MY BEHALF.
UH, YOU KNOW, UH, WE'VE GOT A QUARTER OF A MILLION MILITARY FOLKS AROUND, AROUND THIS CITY AND, AND, AND COMMUNITIES.
SO, UH, THERE, THERE'S, THERE ARE VETERAN-OWNED BUSINESSES OUT THERE THAT I THINK THAT WE NEED TO CONTINUE TO FOSTER THAT MILITARY CITY U S A, UH, MONIKER, IF, IF YOU WILL.
AND, UM, AND GET THAT, GET THAT BACK ON THE BOARD AGAIN AND TRY AGAIN AND SEE WHERE IT GOES.
I DIDN'T QUITE UNDERSTAND THE RATIONALE FOR THE VETO, BUT HEY, I'M NOT THE GOVERNOR.
HAVE WE HAVE ON, ON LIKE THE ETHICS AND, AND, UM, YOU KNOW, HIGH VALUE CONTRACTS, THAT KIND OF THING.
HAVE WE GOTTEN, UH, ORGANIZATIONAL COMMENTS OUTSIDE, LIKE, UH, SAN ANTONIO BUILDING ASSOCIATION, THE SAN ANTONIO MANUFACTURING ASSOCIATION, THOSE ORGANIZATIONS TO GET COMMENTS FROM THEM WHERE THEY WOULD LIKE TO SEE THAT, UM, SEE THAT LIE? WE HAVEN'T ON THE HIGH PROFILE PROCESS, BUT WE DEFINITELY COULD.
WE HAVE DONE THAT ON OTHER AREAS LIKE THE LOCAL AND, AND VETERANS AND S BETA, BUT NOT ON THE HIGH PROFILE PROCESS.
YEAH, I'D, I'D REALLY LIKE TO SEE THAT HAPPEN.
ALSO, TO HAVE IT FULL DISCLOSURE, GET IT OPEN AND, UH, GET COMMENTS FROM EVERYBODY ON, ON THOSE ISSUES.
UM, RENEE, ON YOUR, YOUR, UH, PROGRAMS HERE AND THE, AND THE SUCCESSES THAT YOU'VE HAD IN THE, UH, SMALL BUSINESS CATEGORIES ACROSS THERE, AND IT'S PHENOMENAL HOW MUCH IT'S INCREASED OVER TIME, BUT WHAT'S THE END GAME? WHAT, WHAT'S OUR GOAL? I MEAN, I, I SEE IT CLIMBING, CLIMBING, CLIMBING.
IS IT A, IS IT A HUNDRED PERCENT? UH, I MEAN, WHERE, WHAT, WHAT IS OUR REAL GOAL? YEAH.
WE'RE FORTUNATE IN, IN THAT EACH INDUSTRY AND EACH ETHNICITY HAVE ASSOCIATED GOALS.
AND AT A VERY HIGH LEVEL, THE WAY TO, TO BEST DESCRIBE IT IS BASED ON WHO WE HAVE IN OUR MARKET AVAILABILITY SETS THE GOALS.
AND WHAT WE REPORT ON IS UTILIZATION, RIGHT? HOW MUCH MONEY WE'VE PAID.
SO WHEN WE ARE PAYING, OR MINORITY WOMEN-OWNED BUSINESSES BASED ON WHO'S AVAILABLE IN THE COMMUNITY, THEN WE'VE REACHED SOME LEVEL OF SUCCESS.
BUT WE HAVE TO BE VERY CAREFUL IN HOW WE EXECUTE THE SUB BETA PROGRAM IS AS WE APPLY THESE GOALS AND PREFERENCE POINTS, THAT IF WE STOP DOING IT, WE DON'T START REGRESSING.
SO WE WANNA SEE SOME TREND ANALYSIS THAT SHOWS, YOU KNOW, THAT WE ARE STABLE IN, IN ADDRESSING THAT DISPARITY.
AND ABSOLUTELY THERE IS A SUNSET CLAUSE BUILT INTO THE SUB BETA PROGRAM EVERY FIVE YEARS.
AND SO THAT'S WHY THE REPORTS ARE IMPORTANT, AND THAT'S WHY THE DISPARITY STUDY IN THAT FORMAL ASSESSMENT IS DONE, UH, IN THAT TIMEFRAME.
AND WHERE ARE YOU ON THAT FIVE YEAR TIMELINE NOW? WELL, WE JUST CONCLUDED A 2015 STUDY AND WE RESET.
SO WE ARE IN THE SECOND YEAR OF THAT NEXT FIVE YEAR CLIP.
AND, UM, I GUESS AGAIN, ON, ON ON THOSE CHARTS, YOU KNOW, I'M NOT REALLY SEEING ANY GOALS AND I WOULD LIKE TO SEE WHAT THE GOALS ARE.
I MEAN, THAT'S WHAT WE SHOULD BE SHOOTING FOR.
I MEAN, IF IT'S A HUNDRED PERCENT, LET'S PUT IT UP THERE.
OUR GOAL IS A HUNDRED PERCENT.
UM, BUT I SUSPECT IT'S NOT A HUNDRED PERCENT.
SO THE REPORT THAT WE COUNCILMAN, IT'S NOT 100%.
WE CAN SHOW YOU THE GOALS NEXT WEEK AND WHERE THERE IS DISPARITY AS A RESULT OF THE 2015 STUDY AT IDENTIFIED SOME KEY SEGMENTS OF THE POPULATION AND THEN SHOWED WHERE WE NEEDED TO DO MORE WORK.
AND SO WE CAN SHOW YOU THAT ABSOLUTELY.
AND THE, AS PART OF THE RECOMMENDATIONS, HAS IT VERY CLEARLY BROKEN DOWN WITH A VERY CLEAR BAR ON WHERE THOSE ARE.
I WOULD JUST SAY, YOU KNOW, FOR PRESENTATION PURPOSES FOR THE COMMUNITY AS WELL.
YOU KNOW, WHAT'S OUR GOALS OUT THERE INSTEAD OF JUST, UH, THE NUMBER AT THE TOP.
UM, SO HAVING SAID THAT, YOU KNOW, THERE, TO ME, THERE SEEMS TO BE LIKE A, UM, A CONFUSION AS TO WHAT, UH, SMALL BUSINESSES ARE VERSUS LARGE BUSINESSES.
AND YOU KIND OF HIT ON IT A LITTLE BIT THAT, YOU KNOW, TO ME, SOME SMALL BUSINESSES SEEM TO BE LARGE BUSINESSES, UH, HERE IN SAN ANTONIO.
YOUR, YOUR GOALS ARE FOR, UH, FOR THE PRIME AWARDS.
THE, THE TOOLS THAT WE HAVE IMPACT BOTH THE PRIME AND THE SUBCONTRACTORS.
SO, AND DO WE TRACK ON ALL THE OTHER CONTRACTS? HOW MUCH OF
[02:20:01]
THAT TOTAL CONTRACT IS SUBCONTRACTED TO SMALL BUSINESSES ON THE LARGE CONTRACTS? ALL OF, UH, IF IT'S RUN THROUGH S BETA AND THE S BETA APPLIES, THEN WE TRACK IT BOTH AT THE PRIME AND SUB LEVEL.AND, AND REMIND ME AGAIN, WERE THOSE NUMBERS REFLECTED IN THOSE NUMBERS THAT YOU HAD UP THERE? WERE THEY PRIME CONTRACTS OF LARGE CONTRACTS THAT SUBCONTRACTED TO SMALL CONTRACTS, WE'RE ABLE TO BREAK THAT OUT? WHAT I SHOWED YOU IS AN AGGREGATION OF BOTH PRIME AND SUBCONTRACTING, THE REPORTING THAT WE HAVE, AND THE DETAIL ANALYSIS INCLUDES BOTH, AND WE'RE HAPPY TO GIVE YOU THAT.
I WILL SAY THIS, OVERALL, THIS YEAR IS THE FIRST YEAR WE SAW FROM A UTILIZATION STANDPOINT, MORE MONEY GOING TO PRIME CONTRACTORS THAN SUBCONTRACTORS.
SO WE MOVED THE NEEDLE ON THAT AS WELL.
I WOULD, I WOULD ADD PRIME THAT OUR LOCAL SMALL MINORITY OR WOMEN OWNED, OR ANY COMBINATION OF THE ABOVE CONTRACTORS.
SO IN MANY CASES, UH, WE'RE ABLE TO BREAK DOWN THE SIZE OF OUR CONTRACTS.
AND SOME OF THE PREVIOUSLY SMALL OR SUBCONTRACTORS HAVE NOW BECOME PRIME CONTRACTORS, BUT THAT CHART THAT HE SHOWED REFLECTED SMALL MINORITY, LOCAL WOMEN-OWNED BUSINESSES IN TOTAL, WHETHER THEY WERE A PRIME OR A SUBCONTRACTOR.
UM, AND THEN, UH, YOU, YOU KIND OF PIQUED MY INTEREST A LITTLE BIT ABOUT THE, UH, MENTOR PROTEGE PROGRAM.
YOU KNOW, I, WE'VE HAD, WELL RECENTLY, A AN EXAMPLE, I THINK THAT A MENTOR PROTEGE PROGRAM WOULD'VE VERY, UH, VERY MUCH HELP A LOCAL CONTRACTOR IF THEY HAD ESTABLISHED ONE, UH, LONG BEFORE THE ACTUAL SOLICITATION COMING UP.
AND I WOULD HOPE THAT SOMEHOW THAT WE'RE ADVERTISING THAT ON THE BENEFITS OF THE MENTOR PROTEGE PROGRAM, THAT, YOU KNOW, THIS SMALL BUSINESS, IF THEY HAVE IT SET UP, THAT THEY GET ALL THE EXPERIENCE FROM THE LARGE BUSINESS THAT THEY'RE A PROTEGE OF.
SO, YOU KNOW, THAT THAT WORD REALLY NEEDS TO GET OUT AND THOSE RELATIONSHIPS GET STARTED EARLY, UH, BECAUSE YOU KNOW, WHEN SOME OF THESE LARGE SOLICITATIONS ARE COMING UP AND YOU SHOULD BE WORKING TO SET THAT UP AND BE READY FOR IT NEXT TIME IT COMES OUT.
IF IT'S THE CONTRACT THAT I THINK YOU'RE REFERRING TO, BOTH OF THOSE SMALLS ARE CURRENTLY ENROLLED IN THE MENTOR PROTEGE PROGRAM THAT WE HAVE ESTABLISHED.
UH, MY LAST, UH, AREA IS THE, UH, AND THE L P A, I THINK EVERYBODY'S KIND OF ENDING WITH THAT.
YOU KNOW, UH, I LOOK AT IT LIKE THIS, AND ALL THE MEMBERS ON THE COUNCIL KNOW WHERE I STAND ON IT, UH, WHERE I STOOD ON THAT INITIALLY, AND I STILL STAND ON THAT, THAT, UH, I DON'T THINK IT WAS REQUIRED.
AND, UH, UH, THIS IS SOMETHING THAT SAN TO ME, SAN ANTONIO, THE CITY OF SAN ANTONIO DOESN'T NEED.
UM, BECAUSE WE DO HAVE A GOOD WORKING RELATIONSHIP WITH BUSINESSES, AND THOSE BUSINESSES THAT WORK FOR US HAVE GOOD WORKING RELATIONSHIPS WITH THE, WITH THEIR, UH, EMPLOYEES.
UH, WE GOTTA REMEMBER THAT WE'RE A RIGHT TO WORK STATE HERE ALSO.
AND, YOU KNOW, I, I JUST HAVE AN ISSUE WITH THIS COMING UP, UH, IN CONTRACTS HERE THAT, UH, UM, YOU KNOW, IT, IT, IT DOESN'T FIT SAN ANTONIO.
AND I, I THINK THE BUSINESS COMMUNITY WAS, UM, VERY LOUD WITH THAT ON WHEN THIS CAME OUT, NOTWITHSTANDING THE FACT THAT IT, IT DIDN'T GO THROUGH A PUBLIC COMMENT, UH, PERIOD.
BUT, UM, I, I THINK THAT'S, UH, WE NEED TO BE VERY COGNIZANT OF THAT.
AND WE, WE ACTUALLY, I MEAN, WE ACTUALLY HAVE FOLKS THAT COULD COME AND EXPLAIN SOME OF THE IMPACTS OF, UH, AN L P A TO THEM AS SMALL BUSINESS OWNERS, UH, THAT ARE ACTUALLY CONCESSIONAIRES IN THE AIRPORT.
UM, I DON'T KNOW IF Y'ALL WOULD BE, UH, WANT TO HEAR THAT OR WE COULD DELAY THAT OFF TILL, UH, FUTURE DISCUSSIONS.
I GUESS WE COULD DO THAT, DO THAT LATER.
SO ANYWAY, THAT'S MY, MY COMMENTS ON THAT.
AND, UH, I TOTALLY AGREE, UH, WITH REMOVING IT OUTTA THIS CONTRACT AND MOVING FORWARD.
UH, THANK YOU STAFF FOR YOUR PRESENTATION.
I APPRECIATE THE HISTORY LESSON.
UH, I THINK, UM, MOST OF US, OR IF NOT ALL OF US AROUND THE TABLE RECOGNIZE THE, THE IMPORTANT ROLE THAT SMALL BUSINESSES PLAY IN OUR ECONOMY AND IN OUR SOCIETY, AS WELL AS HOW THEY TIE US TOGETHER.
LIKE, AS SOMEONE MENTIONED, THEY'RE PASSED ON FROM ONE GENERATION TO THE NEXT, AND THEY HELP US BUILD WEALTH, WHICH IS ULTIMATELY WHAT, WHAT STRENGTHENS OUR, OUR ECONOMY.
UM, AND I THINK THE PROCESS THAT YOU EXPLAINED WITH ZE BETA, HOW YOU,
[02:25:01]
HOW YOU IDENTIFIED WHAT THE NEEDS WERE AND WENT AFTER, YOU KNOW, YOU, YOU DEVELOPED A PLAN OF ATTACK AND HAD, UH, A ROBUST ENGAGEMENT PROCESS.I THINK THAT'S, THAT SETS A MODEL FOR, FOR HOW WE WANNA GO FORWARD, IF THERE ARE ANY CHANGES THAT WE ULTIMATELY ADOPT TO THE PROCESS.
SO THANK YOU VERY MUCH FOR, FOR TAKING THAT INTO THE, THE COUNCIL WHO WAS, UH, INVOLVED, UM, AND, AND LED THAT EFFORT AS WELL.
UM, I, I WON'T WAIT TILL THE END.
I'LL JUMP INTO THE L P A RIGHT, RIGHT NOW.
UM, I, I DO FEEL THAT OUR COUNCIL ISN'T READY TO MOVE IN THAT DIRECTION RIGHT NOW ABOUT HAVING AN L P A AT THE AIRPORT.
I JUST DON'T FEEL THE, THE CONSENSUS.
AND I THINK THERE IS A LOT OF INFORMATION THAT, THAT WE NEED TO REVIEW FIRST.
LIKE COUNCILMAN BELAY SAID, UM, I TAKE NOTES ON WHAT EVERYONE SAYS, AND THAT MAKES UP MY BULLETS FOR WHAT, WHAT I'M ACTUALLY GONNA TALK ABOUT.
UM, UH, HOW IS THIS WORKING AT, AT OTHER AIRPORTS? UM, AND, YOU KNOW, AUSTIN IS ONE EXAMPLE, I THINK L A X AND, UH, ARE THERE OTHER UNIONS AT THE AIRPORT? MY UNDERSTANDING IS THAT YES, THERE ARE, UM, SO IT'S NOT, IT'S NOT WHOLLY UNFEASIBLE THAT, THAT THIS COULD OCCUR.
UM, AND ALSO HOW ARE WE GOING TO EVALUATE THE, YOU KNOW, AN L P A AND AN R F P? I THINK THAT WASN'T CLEAR TO ME.
UM, WHAT'S ALSO NOT CLEAR TO ME IS THE STAFF RECOMMENDATION THEN.
AND NOW COULD, COULD YOU CLARIFY THAT? UM, SO THE LAST TIME WE DISCUSSED THE L P A AND THEN TODAY'S RECOMMENDATION, TODAY'S RECOMMENDATION IS TO ISSUE AN ADDENDUM TO THE AIRPORT CONCESSION R F P, THAT IS OUT, THAT SAYS AN L P A IS NOT REQUIRED OF THIS CONCESSION, R F P.
SO, UM, YOU COULD DECIDE IN THE FUTURE, BUT WE ARE RECOMMENDING THAT WE GO FORWARD WITH OUR CONCESSION BID FOR, IT'S A PORTION OF THE CONCESSION OPERATIONS AT THE AIRPORT.
WE NEED TO PROCEED AND THAT WE DO THAT WITHOUT AN L P A AT THIS TIME.
AND THAT, BECAUSE IT MAY TAKE SOME TIME FOR THE COUNCIL TO DIALOGUE ON THIS ISSUE, YOU'LL, YOU WILL PROBABLY WANT TO HAVE SOME MEETINGS WHERE THE PUBLIC IS INVITED, UH, BOTH SIDES TO TALK ABOUT THE ISSUE.
WE'LL PRESENT INFORMATION ABOUT WHAT ARE BEST PRACTICES, WHAT'S HAPPENING IN OTHER AIRPORTS, WHAT'S BEEN THE IMPACT OR THE EXPERIENCE.
AND THEN YOU MAY DECIDE IN THE FUTURE, UH, TO GO FORWARD WITH THAT.
BUT WE'RE SAYING, AND OUR RECOMMENDATION IS NOT TO GO FORWARD WITH THAT AT THIS TIME.
UM, IF I REMEMBER CORRECTLY, WHEN WE WERE ASKING, UM, IN A PREVIOUS CONVERSATION, THERE WAS SOME DISCUSSION ABOUT HAVING BOTH OPTIONS, WHICH THE CURRENT, THE CURRENT POSTING DOES, AND THAT, THAT COULD BE HELPFUL TO US AS WE MOVED FORWARD IN, UM, IN THIS DECISION.
I THINK THAT THE QUESTION WAS, WELL, WHAT'S, WHAT'S THE IMPACT OF THE L P A GONNA BE? AND I THOUGHT THAT WE WERE SAYING WE'RE NOT, WE WON'T KNOW UNLESS WE HAVE TWO.
SO I, I JUST WANNA MAKE SURE WE STILL HAVE AN OPPORTUNITY TO LEARN ABOUT WHAT THE IMPACTS AND BENEFITS CAN BE.
WE'RE RECOMMENDING TODAY THAT WE TALK WITH OTHER AIRPORTS THAT HAVE THEM AND LEARN FROM THAT EXPERIENCE THAT WE NOT INCLUDE L P A AS PART OF THE RECOMMENDATION FOR THIS CONCESSION R F P.
UH, ANOTHER QUESTION I HAVE IS REGARDING, UH, COUNCILMAN ALANA'S, UH, C C R.
SO NO ACTION HAS OCCURRED AS A RESULT OF THAT YET, IS THAT RIGHT? COUNCILMAN? NO, NO ACTION HAS, HAS TAKEN PLACE ON THE C C R AND BASICALLY THE FOLLOWING WEEK, WE'LL PRESENT STAFF RECOMMENDATIONS FOR Y'ALL'S CONSIDERATION WITH RESPECT TO THAT C C R.
SO THE AIRPORT R F P IS OUT AND IT WILL NOT INCLUDE ANY ACTION THAT WOULD COME FROM THE RESULT OF THAT C C R, IS THAT RIGHT? THAT'S CORRECT.
AND HOW LONG IS THE AIRPORT CONTRACT FOR? I DUNNO, HOW LONG, HOW LONG IS THE CONTRACT? HOW MANY YEARS CONTRACT? SEVEN YEARS.
IT'S SEVEN YEARS WITH THREE ONE YEAR OPTIONS.
SO FOR 10 YEARS THAT WE WON'T BE ABLE TO INCLUDE ANY INPUT FROM THAT C C R JUST 'CAUSE WE MISSED THE BOAT BY A FEW WEEKS.
IS THAT, IS THAT BASICALLY WHAT'S,
[02:30:01]
WHAT'S GONNA HAPPEN? UH, COUNCILWOMAN, I WOULD SAY IN THAT PARTICULAR PACKAGE THAT, THAT MAKES UP, UH, ABOUT 20 TO 25% OF THE OVERALL NUMBER OF CONCESSIONS.WE'VE GOT OTHER LEASE EXPIRATIONS THAT ARE COMING UP IN 2020 AND 2022.
SO WE, WE'VE GOT, YOU KNOW, A VARIETY OF DIFFERENT PACKAGES AND THOSE LEASE ARRANGEMENTS WILL CONTINUE.
SO IT'S ONLY FOR PART OF THE AIRPORT, THIS ONE PARTICULAR PACKAGE.
UM, I UNDERSTAND, I DO THINK IT'S TOO BAD THAT WE WERE THAT CLOSE AND, AND DIDN'T GET TO INCLUDE ANY, ANY UPDATES FROM THAT.
'CAUSE I THINK IT WAS FILED A YEAR AGO NOW.
UM, SO I JUST SOME COMMENTS ON THE, ON THE CHANGES THAT I WOULD LIKE TO SEE YOU, BOTH OF YOU PROPOSE SOME, UM, SOME GOOD OPTIONS IN TERMS OF THE RESPONSIBLE BIDDER ORDINANCE OR RESPONSIBLE BIDDER, UH, REQUIREMENT.
I THINK THAT'S DEFINITELY WORTHY OF, OF REVIEW.
UM, IN TERMS OF THE 3% LOCAL, UM, ALLOWANCE MM-HMM.
I TALKED TO A LOT OF FOLKS, UM, FROM THE BUSINESS COMMUNITY AND THE LABOR COMMUNITY AND, AND JUST RESIDENTS ALIKE WHO THOUGHT IT WOULD BE WONDERFUL IF OUR $850 MILLION BOND COULD ALL BE SPENT, UH, LOCALLY SO THAT WE WOULDN'T JUST GET THE CONCRETE FROM IT.
BUT ALSO THE, THE WAGES THAT, THAT CAME FROM THAT.
AND WE'LL HAVE A COUPLE OF CHALLENGES BECAUSE THAT 3% IS INGRAINED IN THE STATUTE.
IT MAY NOT BE APPLIC, IT'S, IT'S IN WHAT THEY CALL CHAPTER TWO FIFTY TWO, WHICH IS APPLICABLE JUST TO OUR LOW BID FOR GOODS AND NON-PROFESSIONALS WHEN WE'RE TALKING ABOUT CONSTRUCTION CONTRACTS AND ALTERNATE DELIVER DELIVERY.
THOSE ARE OTHER STATUTES THAT MY CAST OPERATE UNDER.
AND THEY DON'T ALLOW CURRENTLY THE APPLICATION OF A LOCAL, UM, LOCAL PREFERENCE.
SO BY INCREASING IT 3% TO 5%, IT'D BE PRIMARILY ON THE LOW BID IN OUR, UM, NON-PROFESSIONAL CONTRACTS.
UM, AND, UH, I'D ALSO, UM, I HAVE SOME OTHER SUGGESTIONS FOR WHAT WE CAN EXPLORE IN THAT, SO I'D BE HAPPY TO SIT DOWN AND, AND SURE.
AND, UH, KEEPING WITH THE THEMES OF LIVING OUR VALUES, THEY WOULD BE THINGS THAT I THINK THAT OUR, OUR COUNCIL'S VALUES AND, AND IS WORKING ON RIGHT NOW.
UM, CAN, CAN SOMEONE CLARIFY FOR ME WHAT WOULD BE THE NEXT STEPS IN ADOPTING ANY CHANGES TO OUR CURRENT, UH, PROCUREMENT PRACTICES? LIKE WHAT'S, WHAT DOES THAT TIMELINE LOOK LIKE AND IS THERE AN ENGAGEMENT PLAN ASSOCIATED WITH THAT? YEAH, NEXT WEEK WE'LL BRING BACK THE RECOMMENDATIONS AND AS PART OF THOSE RECOMMENDATIONS, WE'LL GET CAL PUT, UH, WE'LL GET INPUT FROM THE COUNCIL AFTER WE GET THAT INPUT, WE WOULD FASHION TAKE THAT INPUT AND ADOPT IT INTO OUR PROGRAM.
YOU KNOW, WE'D GO OUT TO ALL THE VARIOUS STAKEHOLDERS, THE CHAMBERS, SMALL BUSINESS ADV ADVOCACY COMMITTEE, AND OTHER, UM, OTHER GROUPS OUT THERE TO BASICALLY VET THOSE POLICIES, POLICY, THOSE NEW POLICIES OUT THERE.
SO WE WOULD GO OUT AND DO A ROAD SHOW WITH, UM, ALL THE DIFFERENT STAKEHOLDERS AND GET THEIR INPUT ON WHAT WE'RE PROPOSING.
AND RENE, I WANT TO THANK BOTH OF YOU FOR, YOU KNOW, THIS PRESENTATION BECAUSE IT CERTAINLY EDUCATED ME QUITE A BIT.
UH, YOU KNOW, WE HAD HAD QUESTIONS COME UP IN COUNCIL OFTEN ABOUT HOW THIS PROCESS WORKS AND WHY CERTAIN POINTS ARE GIVEN UNDER CERTAIN PROCEDURES.
SO, YOU KNOW, I'M GONNA REALLY STUDY THIS A LITTLE BIT MORE, BUT IT, IT WAS VERY ENLIGHTENING AND I APPRECIATE THAT.
MAYOR, I HAVE, I HAVE A QUESTION.
DO I UNDERSTAND THAT, UH, WE, THE COUNCIL'S GOING TO VOTE ON REMOVING THE L P A OR IS THE CITY STAFF MANDATING THE CHANGE TO THE R F P? NEITHER COUNCILMAN.
UM, THE CITY STAFF HAS MADE A RECOMMENDATION BASED ON INPUT FROM MYSELF AND OTHER COUNCIL MEMBERS, AS WELL AS OUTSIDE STAKEHOLDERS, AND IS MAKING A RECOMMENDATION IN THEIR BEST PROFESSIONAL JUDGMENT ON HOW WE WOULD MOVE FORWARD.
SO THE COUNCIL, UH, EXCUSE ME, THE CITY MANAGER AND STAFF NEED INPUT FROM THE COUNCIL AS TO WHETHER OR NOT WE AGREE WITH THAT RECOMMENDATION.
WELL, HOW ARE WE SAYING? UH, JUST I NEED TO SAY I AGREE OR I DON'T AGREE, AND THEN THEY KIND OF COUNT NOSES.
UM, I DON'T THINK YOU COUNT, UH, SO MUCH AS HEAR THE INPUT AND TRY TO FIND CONSENSUS VERY SIMILAR TO HOW WE, UH, DIRECT THE CITY STAFF IN EXECUTIVE SESSION.
WELL, WE DIRECTED THE CITY STAFF IN A COUPLE OF OTHER EXECUTIVE SESSIONS TO GO A DIFFERENT WAY, AND NOW THEY'RE COMING BACK WITH A, A 180 DEGREE TURN.
I WOULDN'T CHARACTERIZE IT THAT, THAT WAY, COUNCILMAN.
IT'S, THIS IS MORE ABOUT, UH, PROCESS BEING PUBLIC AND INVOLVING OTHER STAKEHOLDERS AND INPUT FROM THE PEOPLE IN, IN COMMUNITIES THAT ARE AFFECTED.
UH, BUT YOU KNOW, THAT'S, UH, THAT IS UP TO YOUR JUDGMENT IN TERMS OF HOW WE WOULD WANT TO PROCEED FROM HERE.
[02:35:02]
WHY ARE YOU PROPOSING PULLING THE L P A FROM THE CONCESSION? AS THE MAYOR SAID, HE AND I AND SEVERAL COUNCIL MEMBERS HAD CONVERSATIONS ABOUT RESCINDING IT, AND I AM RECOMMENDING THAT BECAUSE I'VE, I'VE HEARD FROM COUNCIL MEMBERS WHO WOULD LIKE TO SEE A CHANGE IN DIRECTION.HAVE YOU BEEN CONTACTED BY A LOT OF BUSINESSES AS I THINK COUNCILMAN PALAIS INDICATED HE HAS, AND I THINK MAYBE SOME OF THE OTHERS I'VE BEEN COPIED ON THEIR COMMUNICATIONS TO YOU, THE COUNCIL MEMBERS, BUT NOT DIRECTLY CONTACTED TO DIRECTLY TO YOU BY BUSINESSES OR THEIR INTERESTS? UM, NOT DIRECTLY BY BUSINESSES, NO.
NOR HAVE I HAD ANY MEETINGS WITH THEM.
I'VE FOLLOWED THE CONVERSATIONS THAT THEY HAVE HAD WITH MANY OF YOU.
I THOUGHT I SAW A COUPLE LETTERS DIRECTED DIRECTLY TO YOU THAT CAME FROM BUSINESS INTERESTS.
YOU DON'T RECALL SEEING A FEW THERE? I, I DON'T RECALL IF I WAS COPIED OR THEY WERE SENT DIRECTLY TO ME.
I'M NOT MAKING THE RECOMMENDATION BECAUSE THEY CONTACTED ME, THE MAYOR AND SEVERAL COUNCIL MEMBERS TALKED WITH ME ABOUT THIS AND, UH, WANTED TO HAVE THIS CONVERSATION TODAY.
AND IN THAT, THAT REFLECTED A CHANGE IN DIRECTION FROM WHAT THE COUNCIL HAD DIRECTED STAFF TO DO PREVIOUSLY.
I WANTED TO BRING IT UP TODAY SO THAT THERE CAN BE A MORE PUBLIC CONVERSATION, AS THE MAYOR SAID, UH, THIS IS MORE ABOUT PROCESS THAN, THAN THE RESULT, UH, TO HAVE A COMMUNITY CONVERSATION AND INVITE ALL SIDES OF THE ISSUE TO COME TO THE TABLE AND TO TALK OPENLY AND TRANSPARENTLY ABOUT THE RECOMMENDATION.
OR LOOKING AT THE HISTORY ON IT.
WELL, I'M MR. CONTRERAS, DO YOU REMEMBER ANY OF THAT DISCUSSION? I NOTICED YOU WERE GOING TO LOOK LIKE YOU WERE GONNA MAKE A COMMENT.
COUNCIL HAD ADOPTED IN A, UH, PRIOR LEGISLATIVE PACKAGE, UM, A AUTH AUTHORIZATION TO REQUEST LEGISLATION TO ALLOW FOR MEET AND CONFER FOR CIVILIAN EMPLOYEES, WHICH WAS A COUNCIL DIRECTIVE, UH, THAT WAS PART OF THE LEGISLATIVE PROPOSAL.
DID THAT REMAIN IN THE LEGISLATIVE PROPOSAL WHEN IT WENT TO THE LEGISLATURE? YES, SIR.
IT WAS PART OF, PART OF THE LEGISLATIVE PROPOSAL.
THERE WAS A BILL INTRODUCED AND IT WAS DEFEATED IN, IN THE LEGISLATURE.
BECAUSE, UH, I BRING THAT UP BECAUSE IT WAS PRESENTED TO ME BY, UH, SOME CHAMBER MEMBERS ABOUT HOW THEY SAID, UH, EIGHT YEARS AGO WE KILLED A MEET AND GREET CONFER EFFORT THAT CAME TO, UH, THE CITY.
AND SO I WASN'T SURE IF IT WAS CITY RELATED OR STATE LEGISLATURE RELATED.
AND THE REASON I BRING THAT UP IS BECAUSE, UM, YOU KNOW, I'M WONDERING IF THIS IS AN ISSUE ABOUT WHAT'S BEST FOR THE CITY OR WHAT'S BEST FOR BUSINESS, TRYING TO MANDATE WHAT THEY THINK IS BEST FOR THE CITY, AND IS IT, UH, A FIGHT, UH, ABOUT, UH, THE CITY BUSINESS OR IS A FIGHT ABOUT BUSINESS VERSUS LABOR AND LABOR ORGANIZATIONS? AND I THINK IF IT IS ABOUT THAT, WE NEED TO COME OUT IN PUBLIC, WE NEVER HAVE MORE PUBLIC DISCUSSIONS ABOUT THAT LIKE THE L P A.
AND SO I THINK BY PULLING IT OFF AND SAYING, WELL, WE CAN START THAT CONVERSATION AGAIN LATER ON, JUST KICKS THAT CAN DOWN THE ROAD WHEN IT'S SOMETHING THAT'S BEFORE US TODAY THAT WE REALLY SHOULD BE TALKING ABOUT MORE.
NOW, IT'S OBVIOUS IF YOU LISTEN TO ME.
YOU KNOW, I'M A, I'M A PROPONENT OF LABOR UNIONS.
I'VE ALSO HEARD AND READ ABOUT SOME OF THE THINGS THAT AREN'T GOOD THAT HAVE BEEN, UH, ATTRIBUTED TO LABOR UNIONS, YOU KNOW, ALL OVER THE PLACE.
BUT I ALSO REALIZE, AND I THINK MANY PEOPLE IN THIS ROOM DO THAT, IF IT WASN'T FOR THE GROWTH OF LABOR UNIONS IN THIS COUNTRY FOR MANY, MANY YEARS, WE WOULDN'T HAVE THE MIDDLE CLASS THAT WE HAVE HAD PREVIOUSLY.
AND NOW I THINK THAT'S SLIPPING AWAY.
AND I DON'T BLAME THE BUSINESS COMMUNITY FOR WANTING TO MAXIMIZE PROFITS, BUT I ALSO REALIZE, AND I THINK EVERYBODY IN THIS COMMUNITY REALIZES THERE'S A LOT OF HAVES AND HAVE-NOTS IN THIS COMMUNITY, A LOT OF HAVE-NOTS.
THIS PARTICULAR L P A WAS VERY
[02:40:01]
FOCUSED.ALL IT WAS DOING WAS TALKING ABOUT A SMALL AREA PART OF THE AIRPORT.
IT DIDN'T MEAN IT WAS GONNA TAKE ANY MONEY INTO OR OUT OF THE GENERAL FUND.
ALL THAT MONEY STAYS IN THE AIRPORT.
IT WAS ABOUT 11 SHOPS THAT MIGHT OPEN UP.
IT WASN'T ABOUT A UNION SAYING PEOPLE NEED TO ORGANIZE OR NEED TO JOIN THE UNION.
IT WAS JUST AFFORDING THEM THE OPPORTUNITY TO TALK WITH WORKERS THAT MAY GO TO WORK AT THOSE COMPANIES AND THAT MAY WANNA GO AHEAD AND ORGANIZE.
BUT I THINK THE BUSINESS COMMUNITY IS GOING TO AN ALL OUT WAR AGAINST THIS BECAUSE THEY'RE SO AFRAID THAT IT'LL LEAK INTO EVERY OTHER ASPECT OF THE BUSINESS COMMUNITY.
WE ALREADY HAVE THE DAVIS BACON ACT, WHICH PROTECTS UNION WORKERS TO GET A DECENT WAGE WORKING FOR THE CITY.
ARE WE GONNA CHANGE THAT? YOU KNOW, WE HAD FIGHTS WITH HOTELS OVER THE LAST FEW YEARS, SO NOW THERE ARE THREE MAJOR HOTELS THAT HAVE UNIONS.
THEY'RE DOING A FINE BUSINESS.
YOU KNOW, THIS ISN'T SOMETHING THAT, UH, IS A DISEASE THAT'S GOING TO TAKE OVER OUR COMMUNITY.
IT JUST GIVES PEOPLE AN OPPORTUNITY TO SAY, WE'D LIKE TO BE ABLE TO WORK TOGETHER TO MAKE SURE WE GET THE BEST WAGES AND THE BEST WORKING CONDITIONS.
AND I DON'T THINK ANY OF US SHOULD BE RUNNING AWAY FROM THAT.
I KNOW YOU DON'T WITH THE POLICE AND THE FIRE DEPARTMENT, SO I WOULDN'T WANNA SEE YOU DOING IT WITH ANY OTHER UNION, ANTHONY.
SO I HOPE PEOPLE WILL RECONSIDER THE RECOMMENDATION AND LEAVE THEM BOTH IN THERE.
AND LET'S GO AHEAD AND SEE THE DIFFERENCE.
MAYBE THERE WILL BE BARELY NO DIFFERENCE AT ALL.
YOU KNOW, MAYBE IT'LL BE A FEW THOUSAND DOLLARS.
FOR EXAMPLE, WE'RE, WE'RE, WE'RE ACCEPTING A COUPLE OF, WE'RE ACCEPTING A CONTRACT FOR THE RADIO, UH, PROJECT FOR THE WHOLE CITY, BRINGING IN SAWS, THE SHERIFF'S DEPARTMENT, THE DIFFERENCE IN PRICE IS $18,000.
THAT'S ALL IT WAS IN, IN THOSE TWO.
SO LET'S NOT SAY THAT WE'RE AFRAID THE CITY'S GONNA LOSE MONEY.
LET'S TAKE A LOOK AT WHAT THE REAL RESULTS ARE AND THEN MAKE A DECISION.
CAN WE BENEFIT OR DO WE NOT BENEFIT? BUT TAKING IT AWAY ELIMINATES THAT OPPORTUNITY FOR US, AND IT KICKS THE CAN DOWN THE ROAD.
AND I DON'T THINK WE SHOULD BE KICKING THIS CAN DOWN THE ROAD.
THIS IS AN OPPORTUNITY TO REALLY SAY IT, DO SOMETHING ABOUT IT.
AND I ADVOCATE WE DON'T CHANGE IT, BUT IF, IF WE DO ANYTHING, PULL THE WHOLE THING BACK, AND THAT WAY WE REALLY WILL HAVE A CONVERSATION ABOUT IT NOW INSTEAD OF TWO YEARS FROM NOW WHEN ANOTHER CONTRACT COMES UP.
SO, YOU KNOW, IF, IF YOU, AS COUNSEL PEOPLE HAVE ANYTHING FURTHER TO SAY, AND I'M SURE SOME OF YOU DO, LET'S HEAR IT, AND LET'S, LET'S SEE IF WE CAN'T MAKE THIS SOMETHING THAT WE MAKE A DECISION ON TODAY AND NOT LATER, OR THAT WE AGREE TO HAVE A COMPREHENSIVE DISCUSSION OF IT NOW AND NOT LATER ON DOWN THE LINE.
SO THAT'S HOW I FEEL ABOUT IT.
THANK YOU, COUNCILMAN COURAGE.
I JUST WANTED TO GO BACK AND, UH, COUNCILWOMAN SANDOVAL WAS TALKING ABOUT, UH, YOU KNOW, THE WHOLE BOND GOING TO SMALL BUSINESS THERE.
YOU KNOW, PART OF THE, PART OF THE ISSUE ON LARGER, LARGER PROJECTS IS THAT THERE'S A REQUIREMENT FOR, UM, UH, BONDING ON THIS.
AND SMALL BUSINESSES JUST DON'T HAVE THAT TYPE OF CAPABILITY FOR, UH, FUNDING OR, OR BEING RESPONSIBLE FOR THAT LARGE OF A BOND REQUIREMENT.
IF Y'ALL CAN SPEAK TO THAT SOME MORE ABOUT, UH, BONDING REQUIREMENTS ON LARGER COUNCILMAN.
COUNCILWOMAN SANDOVAL WOULD LIKE TO CLARIFY A POINT.
IT WAS A LOCAL REQUIREMENT, NOT NECESSARILY SMALL.
SO IF YOU COULD RESPOND WITH IN THAT SENSE.
YOU, YOU STILL HAVE THE FLOOR COUNCILMAN.
IT, IT WAS JUST A CLARIFICATION AS TO WHY WE DON'T GO TO ALL LOCAL TYPE OF BUSINESSES, OF WHICH WE DON'T HAVE, UH, SOME LARGE BUSINESSES HERE LOCALLY TO HANDLE THESE PROJECTS.
ONE OF THE CHALLENGES WE HAVE ON MIKE'S PROCUREMENTS AND MY PROCUREMENTS WHEN IT COMES TO LOW BID IS, AND ESPECIALLY WITH LOCAL, WE SIMPLY CAN'T APPLY IT BECAUSE IT'S NOT ALLOWED UNDER THE STATUTE.
SO WE DON'T HAVE THAT OPPORTUNITY TO INCENTIVIZE LOCAL BUSINESSES ON HIS LOW BID OR MY LOW BID PROCUREMENTS BECAUSE IT'S REALLY NOT ALLOWED BY STATUTE.
[02:45:03]
SO, SO IT TURNS OUT THAT, UH, COUNCILMAN SANDOVAL WRITES DOWN WHAT I SAY, SO I'LL BE MORE CAREFUL.I'M SORRY,
UH, SO I, I, I DO WANNA POINT OUT SOMETHING.
THE CALLS THAT WE'VE BEEN GETTING, AND I, I'VE TALKED TO ALMOST EVERY SINGLE ONE OF YOU ABOUT THIS, HAVE BEEN QUITE EXPLICIT, AND I'M SURE JOHN, YOU'LL AGREE THAT YOU CAN CALL ME.
LISTEN, WHAT I'M JUST GONNA SAY, 'CAUSE I'M ALMOST POSITIVE YOU'RE GONNA AGREE WITH WHAT I'M GONNA SAY, AND THAT IS THE CALLS THAT WE'VE BEEN GETTING ARE EXPLICIT, RIGHT? EITHER YOU'RE PRO BUSINESS OR YOU'RE ANTI-WORKER, AND YOU'VE GOTTA CHOOSE SIDES.
AND THAT'S WHAT EVERY SINGLE CALL I'VE BEEN GETTING SAYS.
AND I, I'M HERE TO TELL EVERYBODY THAT THAT IS THE MOST FALSE CHOICE I'VE HEARD IN A LONG, LONG TIME.
THAT'S A FALSE DILEMMA FALLACY.
AND I DON'T THINK ANYBODY UP HERE IS BEHOLDEN TO HAVE TO BE STUCK TO THIS OR, YOU KNOW, ADHERE TO A FALSE CHOICE OF YOU HAVE TO BE PRO-BUSINESS OR YOU HAVE TO BE BE PRO, YOU KNOW, PRO WORKER, BUT YOU CAN'T BE BOTH.
AND ANYBODY WHO TELLS YOU OTHERWISE IS MISINFORMED OR, OR IS LYING.
AND, AND I'LL TELL YOU THAT EVERY SINGLE PERSON ON THIS CITY COUNCIL WITH WHOM I SERVE IS BOTH, THEY ARE PRO BUSINESS AND THEY'RE PRO WORKER.
I HAVE NEVER, EVER, EVER HEARD ANYBODY ON THIS COUNCIL EXPRESS ANY SENTIMENT THAT WOULD MAKE ME THINK OTHERWISE.
AND ANYBODY WHO SUGGESTS THAT ANY OF MY COLLEAGUES UP HERE DON'T CARE ABOUT BUSINESS, UH, YOU'RE PICKING A FIGHT WITH ME.
I MEAN, THEM IS FIGHTING WORDS.
AND ANYBODY WHO SUGGESTS UP HERE THAT MY COUNCIL MEMBERS DON'T RESPECT WORKERS, YOU ARE MISINFORMED.
AND IF YOU CONTINUE TO SAY IT, YOU ARE MISINFORMING OTHER PEOPLE.
UM, I SPEND HOURS WITH EACH AND EVERY ONE OF YOU TIME ON WEEKENDS AND HOLIDAYS, TIME WHEN I COULD BE WITH MY KIDS, AND TIME WHEN YOU COULD BE WITH YOUR FAMILIES AND LOVED ONES, WORRYING ABOUT EACH AND EVERY SINGLE ONE OF THE PEOPLE IN THIS ROOM AND OUTSIDE OF THIS ROOM, MAKING SURE THAT YOUR BUSINESSES ARE SUCCESSFUL, THAT WE DO EVERYTHING WE POSSIBLY CAN TO POSITION YOU GUYS IN SO THAT YOU CAN CONTINUE TO SUCCEED.
BECAUSE YOUR SUCCEED, YOUR SUCCESS MEANS THAT OUR CONSTITUENTS, OUR TEXAS EMPLOYEES ARE ALSO SUCCEEDING, BUT WE'RE ALSO LOOKING OUT FOR THEM, RIGHT? AND MAKING SURE THAT, YOU KNOW, ALL THE RULES ARE FOLLOWED.
AND WE'RE ALSO LOOKING OUT FOR YOUR CUSTOMERS, MAKING SURE THAT THEY GET THE, YOU KNOW, THE BARGAIN, UH, THAT THEY BARGAINED FOR.
UM, EACH AND EVERY ONE OF YOU HAS DONE AN EXCELLENT JOB AT LOBBYING US, AND YOU'VE LOBBIED US SO HARD THAT, UH, CLAYTON PERRY ACTUALLY GREW MORE WHITE HAIRS.
I DIDN'T KNOW IF THAT WAS POSSIBLE, BUT, UH, YOU KNOW, YOU, UH, AND YOU'VE ALL DONE SUCH A REALLY, REALLY GOOD JOB.
BUT I DO THINK THAT AS YOU KNOW, AS, AS I CLOSE OUT MY COMMENTS FOR TODAY THAT I, I'M, I'D BE REMISS IF I DIDN'T LOBBY YOU BACK AND ASK ALL OF YOU, URGE YOU IN THE STRONGEST OF TERMS TO CUT IT OUT.
ABSOLUTELY NOBODY, WHEN YOU PIT US AGAINST EACH OTHER AND YOU ACCUSE US OF BEING SOMETHING THAT WE'RE NOT, EVERY SINGLE PERSON UP HERE CARES AS MUCH ABOUT YOU AS THEY DO ABOUT THEIR, YOUR EMPLOYEES.
AND TO SUGGEST THAT, YOU KNOW, UH, SOMEHOW, YOU KNOW, MY COLLEAGUE JOHN COURAGE, UM, YOU KNOW, HATES YOU.
I'VE HEARD, YOU KNOW, COUNCILMAN PERRY, YOU KNOW, HE, YOU KNOW, HE HATES LABOR.
AND, UM, THESE ARE HONEST MEN.
THESE ARE GOOD MEN WHO BRING, AND EVERY AND EVERY SINGLE ONE OF US, MAYBE NOT SO MUCH CREWS, BUT EVERY SINGLE ONE OF US, UH, YOU KNOW, BRINGS PASSION TO THIS JOB AND BRINGS IDEAS.
UH, THE, UH, BUT, BUT I WILL TELL YOU THAT IF WE ALL SUCCUMB TO THE LOWEST COMMON DENOMINATOR OF ASSIGNING TO SOMEBODY WHOM WITH WHOM WE DISAGREE, EVIL, ULTERIOR MOTIVES, WE ARE DOING NOTHING TO CONTRIBUTE TO THE QUALITY AND THE CIVILITY OF AMERICAN POLITICS.
AND IT'S BROKEN ENOUGH WITHOUT EVERY SINGLE PERSON IN THIS ROOM CONTRIBUTING TO IT.
AND SO YOU CAN EXPECT ME, EVERY SINGLE TIME I HEAR SOMEBODY SUGGEST THAT THIS IS THE COUNCIL THAT IS MOST ANTI-BUSINESS THAT IT'S EVER BEEN, THAT IS BSS.
AND NOW I'D SUGGEST THAT WE ALL SING.
I'D LIKE TO BUY THE WORLD A COKE
APPRECIATE THE VERY LIVELY DEBATE.
UM, HOPEFULLY, CHERYL, YOU HAVE, UH, HAVE A DIRECTION NOW FROM THE COUNCIL.
UH, THAT IS ALL THE ITEMS THAT WE HAVE FOR THE B SESSION, AND WE'RE GONNA GO NOW TO THE, UH, EXECUTIVE SESSION SCHEDULED.
UH, BUT BEFORE I DO THAT, I WANT TO RECOGNIZE SOMEONE IN THE ROOM WHO HAS, UH, SPENT A LIFETIME OF SERVICE TO THIS COMMUNITY IN THE BUSINESS COMMUNITY.
UH, WHO'S HERE WITH US TODAY, IS THAT, AND THAT IS THE C E O AND, AND PRESIDENT 25 YEAR VETERAN OF THE NORTH CHAMBER OF COMMERCE, DWAYNE WILSON.
THANK YOU, DWAYNE, FOR ALL THE WORK THAT YOU'VE DONE.
[02:50:01]
JUST MOMENT, PLEASE.YOU KNOW, THIS, THIS JOB IS, IS, UH, IT'S JUST ONE OF THOSE CRAZY JOBS THAT'S REALLY REWARDING.
IT'S KIND OF LIKE SITTING ON THE COUNCIL, AND I DON'T KNOW HOW Y'ALL GUYS DO AND GALS DO THIS EVERY, EVERY WEEK.
I DON'T, I DON'T THINK ANY OF US ARE BAD.
WE'RE JUST PEOPLE OUT THERE TRYING TO RUN A BUSINESS.
UH, I DON'T THINK ANY ONE OF US ARE DOING ANYTHING ELSE.
WE'RE JUST TRYING TO DO WHAT'S BEST, ESPECIALLY FOR THE SMALL BUSINESS COMMUNITY.
BUT, BUT YOU KNOW, WHAT WE REALLY DO IN THE, IN THE LONG RUN IS WE'RE OUT THERE GROWING THE LEADERS OF TOMORROW.
THE PEOPLE THAT ARE GONNA BE SITTING ON THIS DIOCESE.
WE'RE GROWING THE SAME AGE GROUP THAT'S SITTING HERE TODAY.
OUR CHAMBER HAS BEEN, AS REBECCA KNOWS, FOR ALL OF SAN ANTONIO, IT'S JUST NOT NORTH.
MAYBE IT WAS IN 1974, BUT IT'S NOT.
WE'RE ABOUT ALL OF SAN ANTONIO PROGRESSING EVERY, EVERY AREA, WHETHER IT'S SOUTHEAST WEST.
WE WANNA SEE THAT ECONOMIC DEVELOPMENT HIT THERE.
WE DON'T NEED NECESSARILY ANYMORE QUOTE NORTH.
BUT, UM, THANK YOU FOR RECOGNIZING ME.
IT'S JUST BEEN AN HONOR TO BE ABLE TO SERVE THIS COMMUNITY.
I'VE JUST HAD A LONG CAREER AND I'LL BE 76 THIS YEAR, AND IT'S JUST TIME TO DO SOMETHING A LITTLE MORE DIFFERENT.
SO, BUT THANK YOU FOR THE RECOGNITION, MAYOR.
YOU AND I'VE BEEN FRIENDS FROM THE BEGINNING BEFORE YOU EVER END, AND, UH, ALWAYS ENJOYED THE CONVERSATION.
UM, AND FOR THE BENEFIT OF THE VIEWERS WHO ASKED WHY I RECOGNIZED HIM, HE ACTUALLY ANNOUNCED HIS RETIREMENT.
BUT DWAYNE, THANK YOU FOR A GREAT CAREER.
[Executive Session]
IS 4:52 PM ON THIS 28TH DAY OF FEBRUARY, 2018.AND PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 5 5, 1 OF THE TEXAS GOVERNMENT CODE V T C S, THE OAK TEXAS OPEN MEETINGS ACT, THE CITY COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.087, ECONOMIC DEVELOPMENT, THE PURCHASE EXCHANGE LEASE FOR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.072 REAL PROPERTY AND LEGAL ISSUES RELATED TO THE CHARTER PETITIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.071 CONSULTATION WITH ATTORNEY.