Jun 13, 2023 Commissioners Court Work Session

[00:00:02]

>> GOOD MORNING. WELCOME TO THE JUNE 13TH COMMISSIONERS COURT WORK SESSION.

FOR TODAY'S AGENDA, WE WILL MEET FIRST AS THE PUBLIC FACILITY CORPORATION AND CONSIDER THE SHOW ROOM APARTMENTS PROJECT.

THEN WE'LL RECONVENE AS COMMISSIONERS COURT FOR PRESENTATIONS.

ONE, ARE PURCHASING POLICIES, PROCEDURES, AND PROCESSES, TWO, OUR LONG-RANGE FINANCIAL FORECAST.

I LOOK FORWARD TO A POSITIVE DISCUSSION TODAY.

AT THIS TIME, I'LL ASK IF THERE ARE ANY CITIZENS TO BE HEARD?

[1. Communications, including citizens who signed the register to speak, and reports.]

WE'LL PROCEED AND I'LL ASK THAT WE NOW

[2. TIME CERTAIN ITEMS]

>> YES. I CAN HEAR YOU. GOOD MORNING.

>> ALL RIGHT, AND THEN COMMISSIONER BOODY IS UNABLE TO BE WITH US TODAY.

LET'S FIRST TAKE UP THE MEETING MINUTES FROM OUR LAST PFC MEETING.

THE MINUTES, ARE THERE ANY RECOMMENDATIONS, PLEASE REVIEW THE MINUTES, ARE THERE ANY RECOMMENDATIONS OR IS THERE A MOTION TO APPROVE THE MINUTES?

>> MOVE APPROVAL OF THE MINUTES.

>> MOTION BY COMMISSIONER COWART.

>> SECOND.

>> SECOND BY COMMISSIONER CLAY-FLORES.

ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SIGNIFY BY SAYING I.

IS THERE ANY OPPOSITION? MOTION CARRIES.

WE WILL NOW TAKE UP AN ACTION TO APPROVE THE WRITTEN RESOLUTION IN THE FORM SUBMITTED TO THE BOARD OF DIRECTORS RELATED TO THE APPROVAL OF THE TERM SHEET WITH HIXON PROPERTIES APPROVING THE ACQUISITION, EXECUTION OR TRANSACTION DOCUMENTS RELATED TO REAL PROPERTY SITUATED NEAR THE INTERSECTION OF BROADWAY AT 8TH STREET AND THE TERMS OF A PUBLIC FACILITY LEASE THEY'RE ON FOR A PROJECT IN THE TO BE KNOWN AS THE SHOWROOM APARTMENTS.

MR. ANDY COHEN, YOU'RE THE LEGAL COUNSEL FOR THE PUBLIC FINANCE CORPORATION, YOU MAY PRESENT.

>> THANK YOU, JUDGE. THANK YOU, COMMISSIONERS.

GOOD TO BE HERE THIS MORNING.

TODAY, WE'RE CONSIDERING THE APPROVAL OF A TRANSACTION TO BE KNOWN AS THE SHOWROOM APARTMENTS.

IT WILL FEATURE 325 UNITS SITUATED AT THE CORNER OF BROADWAY IN 8TH STREET NEXT DOOR TO THE SOTO.

THE SOTO IS ANOTHER PROJECT CONSTRUCTED BY THE SAME DEVELOPER, HIXON VENTURES.

THEY'VE NOT ONLY CONSTRUCTED THE SOTO OFFICE BUILDING, BUT THEY'VE CONSTRUCTED THE WESTIN RIVERWALK, THE HOTEL CONTESSA, AND THE SOUTH BANK PROJECTS.

SO THEY'RE VERY WELL-KNOWN, FAMILIAR DEVELOPER HERE IN TOWN.

THEY'VE DONE LOTS OF GREAT PROJECTS AND THEY'RE LOOKING TO MAKE A DIFFERENCE IN THIS NEIGHBORHOOD.

THIS WILL BRING 325 UNITS TO THIS AREA, 40% OF WHICH WOULD BE RESERVED FOR PEOPLE MAKING 80% OF AMI OR BELOW AREA MEDIAN INCOME AND 10% AT THE 60% LEVEL.

SIMILAR TO THE TOWER LIFE TRANSACTION, THERE WILL BE THE FURTHER AFFORDABILITY CONCESSION PROGRAM, WHICH ALLOWS THE COUNTY TO TAKE FUNDS EITHER FROM ITS GROUND RENT OR FROM OTHER SOURCES SUCH AS THE TOURISTS OR OTHER MEANS AND CREATE ADDITIONAL AFFORDABILITY OVER TIME.

I'VE SHARED WITH EVERYONE A COST-BENEFIT ANALYSIS, THE RETURNS, THE COUNTY ARE PRETTY GOOD.

UPFRONT, THERE'S A $250,000 STRUCTURING FEE.

THERE IS A $487,000 CONSTRUCTION SUPERVISION FEE.

IT GETS PAID TO THE COUNTY IN ADDITION TO THE AFFORDABILITY THAT'S CREATED.

IN ADDITION, THERE'S $125,000 GROUND RENT PAYMENT OVER THE ENTIRE 75 YEAR TERM OF THE LEASE.

WE AND JOHN BEECHAM FROM HIXON PROPERTIES HAVE COME AND BRIEFED EVERYONE'S CHIEF OF STAFFS OR THE COMMISSIONERS AS APPLICABLE.

I THINK YOU'VE ALL GOT A CHANCE TO TAKE A LOOK AT THE SITE.

AND I'M JUST GOING TO OPEN IT UP TO ANY QUESTIONS YOU MIGHT HAVE ABOUT THE PROJECT.

>> ANY QUESTIONS, COMMISSIONER COWART, I START WITH YOU.

>> THANK YOU SO MUCH. ANDY, CAN YOU WALK ME THROUGH THE DIFFERENCE IN TAX REVENUE COLLECTED? THAT WAS ONE OF THE QUESTIONS I DIDN'T SEE IN MY LAST BRIEF IN TERMS OF THE COST-BENEFIT ANALYSIS OF TAX PRIOR TO

[00:05:01]

>> SURE. THE DEVELOPER SHARED WITH US KIND OF A 10 YEAR NET PRESENT VALUE REVIEW OF THE CASHFLOWS.

YOU TAKE A LOOK AT WHAT WE WOULD GET IN TERMS OF COUNTY TAX REVENUE ON THE VACANT LAND, IT'S ABOUT $15,000 A YEAR.

GROWING AT ABOUT 2% WHAT WOULD BE EXPECTED.

THE COST-BENEFIT ANALYSIS IS 13 TIMES THAT ESSENTIALLY.

THE REVENUE TO THE COUNTY IS 13 TIMES GREATER FROM DOING THIS TRANSACTION OVER JUST THAT FIRST 10 YEAR RUN.

NOT TO MENTION THE FACT THAT THERE ARE EXIT FEES.

EVERY TIME THE DEVELOPER WERE TO SELL THE PROJECT, THERE WILL BE A FEE PAYABLE TO THE COUNTY AT SUCH TIME AS THE NEW TENANT COMES INTO THE PROJECT.

>> YOU'RE SAYING THAT 15,000 TIMES 13 EQUALS 195,000 COLLECTED IN TAXES ANNUALLY?

>> YES, IT'S 175,578 VERSUS TOTAL CASH FLOW TO THE COUNTY FROM THE PROJECT IS OVER THE FIRST TEN YEARS IS EXPECTED TO BE 1.945 MILLION.

>> LET ME PUSH BACK ON THE ASSUMPTION WITH RESPECT TO THE 2% GROWTH.

WHERE DO YOU GET THAT NUMBER? BECAUSE MOST OF THE PROPERTY IN THE DOWNTOWN AREA IS HITTING THE APPRAISAL MAX.

>> I THINK THAT, I'M SORRY, I MISSPOKE.

THEY USED AN ASSUMED INFLATION OF TAXES OF 3%, SO IT'S A 3% GROWTH RATE ON THAT.

AND I THINK THAT'S JUST AN ASSUMPTION.

SOME YEARS, YOU'RE RIGHT, IT WILL BE HIGHER AND OTHER YEARS IT WILL BE LOWER.

LIKE THIS YEAR WE'RE NOT EXPERIENCING MUCH IN THE WAY OF GROWTH IN PRICES GIVEN ALL THE DIFFICULTIES IN THE DEVELOPMENT MARKET.

BUT YES, SO ON AVERAGE IT WOULD BE 3% OVER A 10 YEAR RUN.

>> THAT'S A FAIR ASSUMPTION BECAUSE INFLATION OVER HISTORY HAS BEEN 1 TO 4%.

SO AT 3% IS ON THE HIGHER SIDE, MAY ACCOUNT FOR SOME OF THE BUBBLE THAT WE HAVE TODAY.

OKAY, SO ROUGHLY, MAYBE 10 TIMES AS MUCH ROUGHLY TO BE CONSERVATIVE ABOUT IT WOULD BE THE INCREASE IN REVENUE TO THE COUNTY.

IN TERMS OF THE 60% AMI, I DIDN'T SEE WHAT THE RENT WOULD BE FOR THOSE UNITS.

>> YES. THERE IS A CHART THAT WE CIRCULATED AND BASICALLY ESTABLISHES LIKE BY UNIT TYPE, THE DIFFERENCES.

FOR INSTANCE, ON A PARTICULAR TYPE OF ONE BEDROOM, ONE BATH, THE AVERAGE DELTA IN THE AFFORDABILITY IS $300 A MONTH, AND THAT'S ON THE 80% UNITS, IT'S EVEN STEEPER ON THE 60% UNITS.

THERE'S AVERAGE AFFORDABILITY BEING CREATED BY UNIT TYPE.

>> SO THE 60%, I SAW THE 80% AMI AT 1,850 AND ARE YOU SAYING THEY GET A 30%, EXCUSE ME, 1,840.

AND SO THEY WOULD HAVE AN AVERAGE OF 1,565 AT 80% IS THE DELTA, ABOUT 500 FOR THE 60%.

SO THEY WOULD HAVE A $1,200 RENT?

>> YEAH, I THINK THAT'S CORRECT. YOU'RE RIGHT.

FOR THE 60% UNITS AND THEN FOR THE 80% OF UNITS, IT'D BE LIKE $300 FOR THE A1 UNIT.

AND VARIOUS UNITS WOULD HAVE DIFFERENT AVERAGE AFFORDABILITY DEPENDING ON WHERE PEOPLE COME IN AND WHAT THEIR SALARIES ARE.

NOT EVERYONE'S GOING TO COME IN, HAVE EXACTLY 80% AMI, THEY'LL COME IN BETWEEN 60 AND 80.

AND THEN THERE ARE RESTRICTIONS ON UNDERWRITING AS TO WHAT RUNS YOU CAN CHARGE, SO THAT THE AVERAGE AFFORDABILITY IS PRETTY SIGNIFICANT.

ALSO BECAUSE RENTS GROW HISTORICALLY FASTER THAN INCOMES.

OVER THE TERM OF THE 75 YEARS, THE AFFORDABILITY BECOMES GREATER EVERY YEAR.

THE COST OF THE AFFORDABILITY IS GREATER TO THE DEVELOPER AND IS ADDITIVE TO THE COMMUNITY OVER TIME.

I THINK OVER TIME IT'LL DEMONSTRATE THAT.

>> OKAY, LET'S TALK ABOUT COMMUNITY SPACES AND OVERALL PLAN, AND YOU MAY NEED JOHN IN TO GET SOME PERSPECTIVE ON THAT.

WHAT ARE THE OTHER COMMUNITY AMENITY BENEFITS THAT ARE BROUGHT TO SHARE FOR THIS PROJECT?

>> HIXON PROPERTIES HAS BEEN VERY COMMUNITY-MINDED AND HOW THEY'RE REDEVELOPING THIS TRACT OF LAND.

NEXT DOOR IS THE SOTO, IT'S A SIX STORY OFFICE BUILDING THAT'S ALL TIMBER.

TO ADD SOME VITALITY TO THAT SPACE, THEY CREATED A FOOD HALL, SIMILAR WHAT YOU FIND AT THE PEARL.

THERE'S A FOOD HALL WITH SIX OR SEVEN VENDORS THAT WILL BE AVAILABLE TO THESE TENANTS.

AND THAT'S CREATING A COMMUNITY AND OPEN SPACE.

THERE'S ALSO AN OPEN SPACE NEXT DOOR.

[00:10:01]

THOSE ARE USES THAT ARE GOING TO BE ADDITIVE TO THE WHOLE VENTURE.

AND THEN ON THIS BLOCK, NOT ONLY ARE THEY DOING THIS PROJECT, BUT THERE WILL BE FIRST FOR RETAIL.

THEY'LL HAVE WALKABILITY.

IT'LL BE SEGREGATED OUT IN THE PFC, BUT THERE WILL BE PLACES FOR PEOPLE TO SHOP ON A DAILY BASIS WITHOUT HAVING TO GET IN THEIR CARS AND GO PLACES.

AND ALSO PART OF THE DEAL IS THEY'RE GOING TO PRESERVE THE FACADE OF THE CABIN OR CADILLAC DEALERSHIP.

WHICH IS AN 85 YEAR OLD BUILDINGS SITUATED ON THE SAME BLOCK AND PRESERVE THAT.

IT'S ALSO GOING TO HAVE SOME MIXED USE.

IT'S GOING TO CREATE A SENSE OF COMMUNITY AND OPEN SPACE.

AND THEY'VE BEEN VERY THOUGHTFUL IN HOW THEY WANT TO DEVELOP THIS TO TRY TO KEEP THE FLOW GOING.

THERE'S A LOT OF PROJECTS YOU'LL SEE WHERE THERE'S JUST A WALL TO BALANCE IN THE NEIGHBORHOOD.

AND IF YOU LOOK AT THE SITE PLANS THAT WERE PROVIDED, THERE HAS BEEN A REAL EFFORT ON THEIR PART TO CREATE AN OVERALL SENSE OF COMMUNITY AND OPEN SPACE FOR THIS DEVELOPMENT AS A WHOLE, AND THIS ONE IN PARTICULAR.

>> HOW MANY JOBS WILL BE CREATED BY THIS PROJECT?

>> I THINK JOHN BEECHAM IS HERE, HE CAN SPEAK TO THAT BETTER.

JOHN BEECHAM FROM HEXAGON VENTURES [OVERLAPPING].

>> WHILE WE BRING JOHN BEECHAM, IT'S A GOOD TIME FOR HIM TO COME UP.

LET ME JUST SAY THAT IN TERMS OF THE FOOD HALL, WE CAN'T PUT ANY KIND OF HARD THING ON THIS, BUT I WOULD HOPE THAT THOSE FOOD VENDORS WOULD BE DIVERSE.

I THINK THAT WE JUST SAW THE OWNER OF MI ROTI, SHE WAS IN THE JAMES BEARD COMPETITION.

BUT I THINK A DIVERSITY OF EMPLOYMENT IS VERY IMPORTANT TO BE SHARED IN THE INNER CITY.

EVERYONE SHOULD BE GIVEN AN OPPORTUNITY.

HOW DO YOU SEE DIVERSITY IN TERMS OF YOUR CONTRACTING, IN TERMS OF YOUR FOODS, IN TERMS OF YOUR FOOD OWNERSHIP, IN TERMS OF YOUR HIRING? WHAT ARE YOUR THOUGHTS ABOUT HOW YOU'RE GOING TO ACCOMPLISH THAT? HOW MANY JOBS ARE GOING TO BE CREATED HERE?

>> WELL IN THE FOOD HALL ITSELF, CURRENTLY WE HAVE SEVEN VENDORS UNDER CONTRACT.

WE HAVE THE CAPACITY TO PUT 10 IN THE SPACE.

I THINK YOU'LL BE VERY PLEASED WITH THE MIX OF TENANTS AND IN TERMS OF THE DIVERSITY THAT WE'RE GOING TO HAVE IN THERE.

AS I'VE RUN THROUGH THE ROSTER OF THE FOOD THAT WE'RE PROVIDING, WE HAVE VENEZUELAN FOOD, WE HAVE THAI FOOD, WE HAVE HAMBURGERS, WE HAVE PIZZA AND I THINK YOU'LL SEE ALMOST BY SERENDIPITY THAT IT'S GOING TO BE VERY DIVERSE IN TERMS OF MAKEUP.

YOUR OTHER QUESTION REGARDING HOW MANY JOBS WOULD BE CREATED BY THE SPECIFIC PROJECT, THE SHOWROOM APARTMENTS? I DON'T KNOW THAT I'VE GOT AN EXACT ANSWER FOR YOU, BUT I CAN WALK YOU THROUGH SOME BASIC METRICS.

JUST IN TERMS OF DESIGN, WE'D BE PUTTING DESIGN ARCHITECTS TO WORK, PROJECT ARCHITECTS, CIVIL ENGINEERS, PARKING CONSULTANTS, MECHANICAL, ELECTRICAL, PLUMBING ENGINEERS.

I THINK I SAID CIVIL ENGINEER'S ALREADY I'M NOT SURE.

THEN WE WOULD HIRE THE CONTRACTORS.

I DON'T KNOW HOW MANY CONSTRUCTION WORKERS WOULD ACTUALLY BE TOUCHING THIS PROJECT, BUT MY SENSE IS IT WOULD BE WELL OVER A COUPLE OF HUNDRED WHICH I THINK IS VERY GOOD FOR THE COMMUNITY.

THEN FULL-TIME STAFF, ONCE THE APARTMENTS ARE UP YOU WOULD TYPICALLY EXPECT TO SEE AN APARTMENT MANAGER, AN ASSISTANT MANAGER, TWO LEASING AGENTS.

AND THEN IN TERMS OF THE GROUNDS, YOU WOULD HAVE A CREW OF TWO MAKING READY THE UNITS WHEN SOMEONE MOVES OUT AND THEN WE WOULD HAVE A GROUNDSKEEPER AND A PROJECT ENGINEER.

SO I HAVEN'T DONE THE MATH ON THAT BUT IT SOUNDS LIKE ABOUT 10.

>> IS THE OVERALL COST OF THE PROJECT ABOUT $90 MILLION. IS THAT CORRECT?

>> IT WOULD PROBABLY BE NORTH OF THAT.

>> AROUND WHAT?

>> IT COULD BE AS HIGH AS 100 MILLION.

SO FINAL PRICING IS TO COME AND CONSTRUCTION PRICES ARE VERY HIGH RIGHT NOW AS OUR INTEREST RATES.

>> OKAY. VERY GOOD.

YOU KNOW MY OVERALL FEELING IS THAT THE DENSIFICATION OF DOWNTOWN IS VERY IMPORTANT AND A LOT OF THE INFRASTRUCTURE AND LET'S GET INTO THAT REAL QUICK.

THE INFRASTRUCTURE COSTS OF UPGRADING ELECTRICAL, PLUMBING, WATER SEWER I SHOULD SAY, ARE THOSE PART OF THE COST THAT THIS WOULD HELP UNDERWRITE? I MEAN, WHAT KIND OF UPGRADES TO INFRASTRUCTURE DO YOU HAVE TO INVEST IN?

>> COMMISSIONER CALVERT, I DON'T HAVE A GREAT ANSWER FOR THAT YET.

WHEN IT COMES TO THE ACTUAL ENGINEERING OF THE INFRASTRUCTURE, WE'VE GOT A LITTLE WORK TO DO THERE AND I DON'T WANT TO GIVE YOU A HALF THOUGHT-OUT ANSWER.

[00:15:02]

HOWEVER, THE TIE-INS ARE REAL WORK.

>> SO A COUPLE OF THINGS. OBVIOUSLY, MANY OF US BELIEVE IN DEEP AFFORDABILITY FOR PROJECTS IN AND AROUND THE CORE SO THAT THE LABOR FORCE HAS WORKFORCE HOUSING TO BE ABLE TO SERVICE THEIR VARIOUS ENTERPRISES THAT ARE DOWNTOWN FROM OUR HOSPITALITY INDUSTRY TO JUST THE BUSINESS OF IT AND OTHER KINDS OF VENDORS THAT ARE IN THE DOWNTOWN AREA.

OF COURSE, I THINK WHAT THIS BRINGS IS PROFESSIONAL AND SOME FOLKS WHO WILL BE WORKING IN RETAIL AND DIFFERENT KINDS OF OFFICE ENVIRONMENTS.

A MIDDLE OR UPPER MIDDLE-CLASS CLIENTELE TO THE DOWNTOWN CORE AND URBAN MINDED CONSUMER WHO WILL INCREASE I THINK THE DOLLAR CIRCULATION WITHIN THE URBAN CORE.

SAN ANTONIO HAS BEEN 30 YEARS BEHIND EVERY MAJOR CITY IN AMERICA WITH RESPECT TO RE-INVESTING IN ITS HISTORIC URBAN AREAS.

SO I THINK THAT FROM A TAXING STANDPOINT, THE FISCALLY CONSERVATIVE THING FOR GOVERNMENTS TO DO IS TO INVEST IN THEIR CORE, DENSIFY THEM HIGHEST AND BEST USE OF LAND.

THIS IS A HIGHER USE OF THE LAND.

MORE REVENUE WILL END UP GOING TO THE TAXPAYERS THAT WILL ALLOW US TO FUND A LOT OF THE THINGS THAT WE LIKE TO SEE DONE AND THEY'RE COST-BENEFIT ANALYSIS IS PROBABLY AT 10 TIMES.

WOULD WE LIKE DEEPER AFFORDABILITY? ABSOLUTELY. CAN WE CONTINUE TO WORK ON IT? YES, WE CAN, AND WE CAN BECAUSE WE'RE INCREASING THE OVERALL REVENUE TO THE COUNTY SO THAT WE ACTUALLY HAVE A POT OF FUNDING THAT CAN BE SET ASIDE FOR DEEPER AFFORDABILITY.

WELL, I WOULDN'T QUITE CALL THIS A MIDRISE.

A LOOK AT A MIDRISE IS KIND OF 10 STORY OR MORE, BUT THIS IS A VERY GOOD STEP FORWARD.

IT'S A VERY GOOD PLAN.

IT IS A BEAUTIFUL PLAN AESTHETICALLY, IT WILL LEND ITSELF TO URBAN LIVING THAT HAS A BIT MORE THAN JUST CONCRETE.

IT ACTUALLY HAS A LOT OF DEPTH TO IT.

IT HAS A HIGH CALIBER OF DESIGN PRODUCT TO IT.

SO I'M GOING TO VOTE IN FAVOR OF THIS.

JUST AS WE WIND UP, DO WE HAVE THAT DEADLINE WITH THE LEGISLATURE? WHAT'S GOING ON WITH RESPECT TO THAT DEADLINE THAT WE'RE RUNNING UP AGAINST?

>> YES. SO HB 2071 WAS PASSED BY TWO-THIRDS MAJORITY OF BOTH THE HOUSE AND THE SENATE.

IT'S SENT TO THE GOVERNOR AS OF THIS MORNING. IT HAS NOT BEEN SIGNED.

SO WE'RE WAITING FOR THE GOVERNOR TO SIGN IT.

ONCE THAT GOES INTO EFFECT, WE HAVE A LITTLE BIT LESS FLEXIBILITY AROUND THE PROGRAM BUT THERE ARE CONTINUING OPPORTUNITIES TO MOVE FORWARD IN DIFFERENT VEINS.

>> THAT'S ALL I HAVE. I KNOW MY COLLEAGUES MAY HAVE SOME COMMENTS.

>> ALL RIGHT.

>> I HAVE A COUPLE OF QUICK [OVERLAPPING].

>> HOLD ON. COMMISSIONER RODRIGUEZ DO YOU HAVE ANY QUESTIONS?

>> YES I DO, JUDGE.

THANK YOU AND I'LL BE BRIEF.

I THINK COMMISSIONER CALVERT COVERED QUITE A BIT IN HIS QUESTIONING.

ANDY, I GUESS WHAT I WANTED TO REALLY TOUCH BASE ON IS YOU REALLY KIND OF GLOSSED OVER 2071.

YOU SAID THAT TAKING ACTION TODAY WOULD ESSENTIALLY GET THIS IN A SENSE TIMESTAMPED UNDER THE EXISTING LAW.

SO ANY CHANGES SHOULD THE GOVERNOR SIGN THAT BILL MOVING FORWARD WOULD NOT IMPACT THIS PROJECT, RIGHT?

>> THAT'S CORRECT.

>> OKAY.

>> YEAH, AND THERE'S A GRAND VALID PROVISION OF HB 2071 SECTION 10B OF THE ACT WHICH PROVIDES THAT THE EXISTING ACT REMAINS IN EFFECT FOR DEALS THAT ARE APPROVED BY THE BOARD OF THE PUBLIC FACILITY CORPORATION ON OR BEFORE THE EFFECTIVE DATE OF THE LEGISLATION.

>> OKAY, AND I HAD A CHANCE TO VISIT WITH JOHN AND HIS TEAM JUST TO PUT IT INTO CONTEXT A LITTLE BIT AND I KNOW THIS WAS ESTABLISHED BEFORE YOU WERE HERE JUDGE, BUT PFCS I THINK ARE USED ALL OVER THE STATE FOR A VARIETY OF REASONS.

SOMETIMES IT'S VERY SPECIFIC WORKFORCE HOUSING, ALWAYS AN AFFORDABILITY PIECE TO IT, BUT IT'S CONTEXTUAL.

I MEAN THIS IS AN OPPORTUNITY.

I THINK WHEN WE SET THIS UP LAST YEAR, WE LOOKED AT IT NOT JUST TO ADDRESS THE AFFORDABILITY CRISIS, BUT IT'S ALSO VERY SPECIFICALLY USED AS AN ECONOMIC DEVELOPMENT TOOL.

I THINK WHEN YOU LOOK AT TOWER LIFE, WHEN YOU LOOK AT THE CONTINENTAL AND THIS PROJECT, THERE'S GOING TO BE SOME ASPECT OF AFFORDABILITY BUT AGAIN, CONTEXTUAL.

WE'RE DOWNTOWN SO IT MAY BE DIFFERENT IN TERMS OF RENT IF YOU WERE TO DO A NEW BUILD OUT ON 1604.

[00:20:05]

AGAIN, VERY SPECIFICALLY TAILORED ARE PFC, YOU HAVE TO HAVE A HISTORIC RESTORATION PIECE.

SO THAT WAS IMPORTANT I KNOW TO JUDGE WOLF OF THE TIME.

I THINK IT CONTINUES TO BE IMPORTANT FOR THIS COURT THAT WE LOOK FOR OPPORTUNITIES WHERE WE CAN PRESERVE SOME OF THE HISTORY OF OUR COMMUNITY BUT ALSO PROVIDE THE AFFORDABLE HOUSING THAT IS SO MUCH NEEDED, NOT JUST AGAIN IN THE URBAN CORE BUT ALL OVER OUR COMMUNITY.

IT JUST SO HAPPENS THAT THE OLDER PARTS OF THE COMMUNITY ARE IN THE URBAN CORE.

SO THAT'S WHY WE'RE FOCUSING ON THOSE PROJECTS.

SO I DON'T HAVE ANY QUESTION JUDGE.

I'M HAPPY TO BE SUPPORTIVE.

I THINK IT'S A GOOD PROJECT AND EXCITED ABOUT WHAT IT'S GOING TO DO TO THAT CORRIDOR ON BROADWAY. THANK YOU.

>> COMMISSIONER CLAY-FLORES.

>> YES.

I APPRECIATE THE TOUR WHEN I WAS ABLE TO GO OUT THERE.

I JUST HAVE A QUESTION ABOUT THE RESIDENTIAL AMENITIES.

SOME OF THE OTHER FACILITIES THAT WE WORK WITH IN THE PAST, THEY MIGHT HAVE A CHILDREN'S AREA OR COMPUTER LAB OR SOMETHING, CAN YOU TALK A LITTLE BIT ABOUT THAT?

>> WELL, AT THIS POINT, WHAT WE ARE COUNTING ON IS A FITNESS CENTER, WHICH IS VERY COMMON IN APARTMENT COMPLEXES, OBVIOUSLY A SWIMMING POOL.

THEN WE'RE ALSO WORKING ON A COMMUNITY AREA AND COULD PEOPLE DO WORK FROM HOME? THAT IS A REAL POSSIBILITY IN THOSE COMMUNITY AREAS.

IT'S JUST A PLACE TO GATHER, BE OUTSIDE OF YOUR APARTMENT, IT'S STILL BE SOMEWHAT IN PUBLIC, WE DO NOT HAVE ANY PLANS FOR DAYCARE TYPE OF USE.

HOWEVER, WITH THE RETAIL COMPONENT THAT WE ARE BUILDING INTO THIS PROJECT, WE DO HAVE SPACE THAT IS GOING TO BE AVAILABLE FOR LEASE AND WE'LL BE LOOKING FOR GOOD USES.

>> THANK YOU.

>> LET ME MAKE THESE COMMENTS AS PRESIDENT OF THE POC.

THIS IS A REALLY GREAT PROJECT EVER WAS EXPLAINED TO ME.

I WANTED TO BELIEVE ON THESE THOUGHTS SO THAT WE CAN NOW MOVE FORWARD WITH SOME CLARITY.

WANTED EXPENSE OUR HOUSING STOCK AT THE TIME WE'RE FACING A SHORTAGE, OBVIOUSLY.

WE'RE ADDING MORE THAN A 100 MORE AFFORDABLE UNITS TO THE MARKET AT 8% AMI, WITH THE OPPORTUNITY TO USE THE ANNUAL RENT TO EXPAND AFFORDABILITY AT OR BELOW THE 60% AMI, CORRECT?

>> THAT'S CORRECT, JUDGE.

>> OBVIOUSLY AS COMMISSIONER RODRIGUEZ IS NOTED CONSERVE CELEBRATE A HISTORIC PROPERTY IN OUR URBAN CORE THAT HAS A POSITIVE ECONOMIC DEVELOPMENT IMPACT ON THE BROADWAY CORRIDOR.

I WILL SUPPORT THIS PROJECT AND HOPE MY COLLEAGUES WILL DO THE SAME.

ARE THERE ANY FURTHER DISCUSSIONS? IS THERE A MOTION?

>> I MOVE THE APPROVAL.

>> SECOND.

>> MOTION BY COMMISSIONER COWART, SECOND BY COMMISSIONER RODRIGUEZ.

ANY FURTHER DISCUSSION? HEARING NONE, ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.

>>AYE.

>> ANY OPPOSED? MOTION CARRIES.

HOPEFULLY THE GOVERNOR HAS ASSIGNED HIS BILL YET?

>> YES, SIR. THANK YOU.

>> I BELIEVE WE HAVE TAKEN CARE ALL THE MATTERS OF THE POC, I'LL ADJOURN THE POC AND RECONVENE AS COMMISSIONERS COURT.

LET US NOW TAKE UP THE FIRST ITEM, PRESENTATION,

[3. Presentation and discussion of purchasing policies, procedures and processes to include: a. Proposed Purchasing Manual/Procedures Guide, and b. Supply SA Procurement Playbook]

MR. SMITH. [NOISE]

>> GOOD MORNING, JUDGE AND COMMISSIONERS, THANK YOU.

THIS MORNING, I'LL BE PRESENTING SOME PROPOSED CHANGES TO A DRAFT PERTINENT NEW PURCHASING MANUAL AND PROCEDURES GUIDE.

I BECAME AWARE OF THESE PROPOSED CHANGES AND NEW DRAFT POLICY BY ASKING THE DISTRICT ATTORNEY'S OFFICE SOME 10 DAYS AGO OR SO, TO PROVIDE ME WITH THE DOCUMENT THAT HOLLAND AND KNIGHT, YOUR DISPARITY STUDY ATTORNEYS WERE ASKED TO REVIEW AND THEY PROVIDED ME THIS DRAFT POLICY.

AS I STARTED READING IT, I REALIZED THERE WERE SOME CHANGES THAT I THOUGHT WERE SIGNIFICANT TO OUR CURRENT POLICY AND I WANTED TO BRING THOSE TO THE COURTS AWARENESS.

[00:25:07]

NUMBER 1 IS THERE ARE NEW PROCUREMENT DEADLINES BEING PROPOSED.

THERE ARE ALSO LOCAL PREFERENCE FOR REAL OR PERSONAL PROPERTY ACQUISITIONS.

THERE'S WHAT I'M CALLING A RECIPROCITY FOR BIDDERS FROM CERTAIN OTHER STATES.

THERE ARE CONTRACT MODIFICATION CHANGES.

THEN FINALLY, WE'LL DISCUSS THE DISPARITY STUDY IMPLEMENTATION AND AT THAT POINT I'LL TURN IT OVER TO MS. RENEE WATSON, WHO CAN GIVE YOU MORE DETAIL.

THANK YOU. COULD YOU GO BACK ONCE? THERE WE GO.

THE NEW PROCUREMENT GUIDELINES, OUR CURRENT POLICY IS 70 DAYS FOR AN INVITATION FOR BID, AND THAT'S ON PAGE 12 OF OUR EXISTING PURCHASING MANUAL.

THE PURCHASING AGENT MADE ME AWARE THAT SHE HAS A POLICY OF 84 DAYS FOR AN RFP.

I COULD NOT FIND THAT IN OUR EXISTING MANUAL, BUT SHE'S THE PURCHASING AGENT SO SHE SHOULD KNOW.

THE NEW DEADLINES, HOWEVER, ARE 106 DAYS FOR BIDS AND 195 DAYS BEING PROPOSED FOR, WHAT'S CALLED NEGOTIATED WHICH PRIMARILY WOULD BE RFPS.

I DON'T HAVE ANY INFORMATION OR DATA TO SUGGEST WHETHER OUR CURRENT 70 DAY PROCUREMENT PERIOD IS BEING FREQUENTLY MET.

I CAN'T PROVIDE THE REASONING FOR THE INCREASED LENGTH OF TIME.

I DO KNOW THAT I PRESENTED EACH OF YOU WITH SOME CONCERNS THAT COMMISSIONER MOODY HAD ABOUT THESE PROPOSED POLICIES AND THIS WAS ONE OF THEM.

THE INCREASED DEADLINES HE FELT WERE GOING IN THE WRONG DIRECTION.

AS WE'RE NOT TAKING ANY ACTION TODAY FOR YOUR DIRECTION, I'LL SIMPLY MAKE YOU AWARE OF IT AND YOU CAN GIVE ME THE PURCHASING AGENT ANY FEEDBACK YOU HAVE REGARDING THAT.

>> DAVID, I JUST WANTED TO ASK YOU REAL QUICK HERE.

YOU'RE SAYING THAT THIS WAS A PROPOSAL IN THE GRIFFIN AND STRONG FOR ADDITIONAL TIME?

>> NO. THIS IS FROM THE PURCHASING AND THE NEW DRAFT PURCHASING AND PROCEDURES MANUAL.

>> IS THIS YOUR CMO POLICY OR IS THIS FROM SPLIMBY OR IS IT FROM [OVERLAPPING]

>> THE DRAFT PURCHASING MANUAL IS, I BELIEVE AUTHORED BY THE PURCHASING DEPARTMENT AND THIS WAS IN THE DA'S OFFICE FOR REVIEW.

THEY SENT IT TO ME AND THAT'S WHEN I STARTED READING, AND BECAME AWARE OF THESE PROPOSED CHANGES, AND THOUGHT THEY WERE NOT WORTHY ENOUGH TO BRING THAT TO THE COURT'S ATTENTION.

>> I KNOW THAT WE HAVEN'T FUNDED A NUMBER OF THE REQUESTED POSITIONS.

I THINK PURCHASING BOARD FUNDED HALF OF WHAT THE PURCHASING AGENT ASKED FOR IN THE LAST BUDGET FOR HER DEPARTMENT.

HAS THERE BEEN ANY ANALYSIS FROM BUDGET ABOUT WHETHER OR NOT WE SHOULD BE INCREASING? FOR EXAMPLE THE

>> I CAN'T HEAR YOU, COMMISSIONER.

WHILE WE'RE WAITING FOR THE COMMISSIONER TO COME BACK, I WILL SAY THAT ALSO ON TODAY'S AGENDA IS THE DISCUSSION OF THE LONG-RANGE FINANCIAL FORECAST.

PART OF THAT WILL OUTLINE WHAT IS BEING REQUESTED BY OFFICERS IN DEPARTMENTS INCLUDING THE PURCHASING OFFICE AND I BELIEVE THEY'RE REQUESTING FOUR ADDITIONAL EMPLOYEES.

ANYWAY, WELL, THAT'LL BE LISTED IN THAT DISCUSSION AS WELL.

WOULD YOU LIKE ME TO MOVE ON? OKAY. ANOTHER CHANGE AND THIS IS ACCORDING TO STATE STATUTE, IS A LOCAL PREFERENCE WHEN WE ARE PROCURING REAL AND PERSONAL PROPERTY AND THIS IS ON PAGES 54 AND 55 OF THE NEW MANUAL.

IT'S PURSUANT TO TEXAS LOCAL GOVERNMENT CODE 271.905.

IT ESTABLISHES THAT FOR THE ACQUISITION OF REAL OR PERSONAL PROPERTY, THAT COUNTY CAN SELECT A LOCAL BIDDER OVER A NON-LOCAL LOW BIDDER IF THE VENDORS BID IS WITHIN 3% OF THE LOW BID.

[00:30:05]

SOME ISSUES, CONSIDERATIONS THAT CAME UP AS I READ THAT, THAT'S THE LAW AND YOU'RE ALWAYS ALLOWED TO OVERRIDE THAT AND AWARD TO A LOW BIDDER IF YOU CHOOSE.

HOWEVER FIRST OF ALL, THE COUNTY RARELY ACQUIRES.

IN FACT, I'M NOT AWARE OF EVER ACQUIRING REAL ESTATE THROUGH A BID PROCESS.

SO IT PROBABLY WON'T APPLY TO THE PURCHASE OF LAND OR BUILDINGS, BUT IT COULD IF YOU DID GO THAT OPTION.

HOWEVER, THE BIGGER CONSIDERATION I THINK THAT THE COURT SHOULD THINK ABOUT IS THE DEFINITION OF PERSONAL PROPERTY IS QUITE BROAD.

NOW, I CITED PURSUANT TO [INAUDIBLE] OFFICE THE TAX CODE DEFINITION OF IT, WHICH BASICALLY SAYS ANY PERSONAL PROPERTY MEANS ANY PROPERTY THAT'S NOT REAL PROPERTY.

THE PURCHASING AGENT SUGGEST WE USED THE DEFINITION FROM CHAPTER 271 OF THE LOCAL GOVERNMENT CODE WHICH READS, "PERSONAL PROPERTY INCLUDES APPLIANCES, EQUIPMENT, FACILITIES, AND FURNISHINGS.

INTEREST IN PERSONAL PROPERTY WHETHER MOVABLE OR FIXED CONSIDERED BY THE GOVERNMENTAL BODY OF THE GOVERNMENTAL AGENCY TO BE NECESSARY USEFUL, INAPPROPRIATE TO ONE OF THE PURPOSES OF THE GOVERNMENTAL AGENCY.

THIS TERM INCLUDES ALL MATERIALS AND LABOR FOR THE INSTALLATION OF THAT PERSONAL PROPERTY.

THIS TERM INCLUDES ELECTRICITY AND COMPUTING DEVICES.

IT DOES NOT INCLUDE REAL PROPERTY." EITHER WAY, EITHER STATUTE YOU LOOK AT, IT BASICALLY MEANS IF YOU CHOSE TO, IF THE COUNTY SO CHOSE, YOU COULD APPLY THIS 3% PREFERENCE TO LOCAL BIDDERS OVER NON-LOCAL BIDDERS FOR THE ACQUISITION OF PRETTY MUCH ANY PHYSICAL OBJECT THAT'S NOT REAL PROPERTY.

SO THAT'S A SIGNIFICANT CHANGE.

WE'VE PREVIOUSLY IN BIDS ALWAYS AWARDED TO THE LOW BIDDER.

SEPARATELY, THE NEW POLICY CITES AND OTHER STATUTE AND THANK YOU TO THE PURCHASING AGENT FOR FINDING IT BECAUSE I WAS TOTALLY UNAWARE OF THIS LAW.

IT'S GOVERNMENT CODE SECTION 2252.002, AND IT APPLIES TO THE CONSTRUCTION OF PROJECTS OR THE PURCHASE OF SERVICES, SUPPLIES, AND MATERIALS OR EQUIPMENT.

BASICALLY AGAIN, PRETTY MUCH ANYTHING YOU WOULD PROCURE.

I WILL POINT OUT IT DOES NOT APPLY IF FEDERAL FUNDS ARE BEING USED FOR THE PURCHASE, YOU HAVE TO GO BY FEDERAL GUIDELINES.

WHAT THE STATUTE BASICALLY SAID AND I'LL GIVE AN EXAMPLE TO HELP CLARIFY THIS BUT, "IF A LOW BIDDER'S PRINCIPAL PLACE OF BUSINESS IS IN ANOTHER STATE AND THAT STATE LAW GIVES ITS STATES LOCAL BIDDERS A PREFERENTIAL TREATMENT, WE ARE REQUIRED IN EFFECT TO PENALIZE THAT BIDDER." AND SO I'LL GIVE AN EXAMPLE THAT MIGHT MAKE IT MORE CLEAR AND THIS CAME FROM THE MANUAL.

HYPOTHETICALLY, A LOW BIDDER'S PRINCIPAL PLACE OF BUSINESS IS IN ALASKA.

THE LAWS OF THE STATE OF ALASKA GIVE ALASKAN BIDDERS A 5% PREFERENCE IN ALASKA.

LET'S SAY THE ALASKAN BIDDER SUBMITS A LOW BID FOR $100,000 FOR A BEXAR COUNTY BID.

THE ALASKAN BIDDER CANNOT, AND THAT IS THE LANGUAGE OF THE LAW, CANNOT BE AWARDED THE CONTRACT UNLESS ALL BIDS BY TEXAS BIDDERS ARE MORE THAN 105,000, IN OTHER WORDS, THE 5%.

SO IT ESSENTIALLY CREATES A RECIPROCITY FOR BIDDERS FROM CERTAIN OTHER STATES.

THAT LIST OF STATES IS KEPT BY THE COMPTROLLER OFFICE AND THE LAW ENVISIONS UPON THE UNSEALING OF A BID THAT THE PURCHASING AGENT WOULD CHECK WITH THE COMPTROLLER'S OFFICE AND ADJUST THE LOW BID RECOMMENDATION ACCORDINGLY.

AND AGAIN, THE LANGUAGE IS STATUTORY, YOU CANNOT AWARD IF WE HAVE A TEXAS BASED BIDDER WHO IS WITHIN 5% OF AN ALASKAN BID.

AND THIS VARIES FROM STATE TO STATE.

>> DAVID THIS IS TOMMY AGAIN, I JUST WANTED ON THE LOCAL PREFERENCE FOR REAL ESTATE, IS IT A TEXAS LOCAL PREFERENCE OR IS IT A BEXAR COUNTY LOCAL PREFERENCE?

>> SO I WOULD HAVE TO GET WITH LARRY AND HIS OFFICE.

[00:35:02]

SO I WOULD HAVE TO CHECK AND SEE WHAT THAT MEANT STATUTORILY.

[OVERLAPPING] I'M SORRY. GO AHEAD.

>> WHY NOT ANY CONSIDERATION TO A LOCAL PREFERENCE OVER COMMODITIES OR OTHER PROFESSIONAL SERVICES? IS THAT ALSO LATER ON OR IS THAT NOT CONSIDERED?

>> THAT'S NOT REFERENCED IN THE STATUTE.

IT SIMPLY REFERENCES AS REAL OR PERSONAL PROPERTY.

>> INTERESTING. I THOUGHT THAT THERE WAS A LOCAL PREFERENCE FOR COMMODITIES.

WE DON'T CIRCULATE THE DOLLAR.

A LOT OF BUSINESSES LOCALLY LOSE OUT TO OUT OF TOWN PROFESSIONAL SERVICES AND COMMODITIES, BUT IT ENDS UP NOT REDOUNDING AND MULTIPLYING IN OUR ECONOMY BECAUSE THOSE COMPANIES ARE IN OTHER CITIES.

IS LARRY AWARE IF THE STATUTE SAYS IT'S GOING TO BE BEXAR COUNTY OR TEXAS?

>> SO JUST TO CLARIFY COMMISSIONER, THE SLIDE I HAVE UP RIGHT NOW IS THE LOCAL PREFERENCE PROGRAM.

THE SECOND DISCUSSION WAS ABOUT THE RECIPROCITY TREATMENT FOR BIDDERS FROM OTHER STATES.

SO THERE ARE TWO DIFFERENT DISCUSSIONS, TWO DIFFERENT STATUTES.

THE LOCAL PREFERENCE STATUTE DEALS WITH REAL AND PERSONAL PROPERTY ONLY.

THE RECIPROCITY DEALS WITH ANY BID.

>> COMMISSIONER CALVERT, ARE YOU STILL THERE?

>> YEAH. YOU CAN KEEP GOING.

IT WOULD BASICALLY BE THE RECIPROCITY THAT I WAS TALKING ABOUT FOR OTHER GOODS AND PROFESSIONAL SERVICES, CORRECT?

>> IF IT WAS A BID, THAT'S CORRECT, I BELIEVE.

THAT'S HOW I READ THE STATUTE.

>> OKAY, GOT IT. ALL RIGHT, VERY GOOD.

IS THAT A RECOMMENDATION TO ADD TO OUR POLICY?

>> IT IS IN THE DRAFT NEW POLICY NOW AND IT IS THE LAW, UNLESS IT GOT CHANGED IN THE LEGISLATURE WE'LL HAVE TO CHECK, BUT THAT'S THE LAW, SO YOU HAVE TO DO THAT

>> OKAY. I'M SORRY. GO AHEAD, DAVID.

>> NO PROBLEM. CONTRACT MODIFICATIONS, THESE ARE ON PAGES 144 THROUGH 150 OF THE NEW DRAFT PURCHASING GUIDE.

FIRST OF ALL, IT'S A HELPFUL DISCUSSION OF ALL THE DIFFERENT TYPES OF CONTRACT MODIFICATIONS JUST TO REMIND THE COURT THAT, LEGALLY, WHEN IT COMES TO THE COST OF THE CONTRACT, IT MAY NOT BE MODIFIED EVEN WITH COMMISSIONERS COURT CONSENT BY MORE THAN 25% WITHOUT BEING RECOMPUTED.

YOU HAVE A STATUTORY FRAME TO YOUR SANDBOX, SO TO SPEAK, WHEN IT COMES TO THE COST OF THE CONTRACT.

BUT THERE ARE MANY DIFFERENT KINDS OF CONTRACT MODIFICATIONS.

THEY APPEAR ON YOUR REGULAR AGENDAS ALL THE TIME.

ONE IS A UNILATERAL LOT MODIFICATION, I.E., WE CHANGED THE NAME OF THE POINT OF CONTACT IN THE CONTRACT.

THAT'S A MODIFICATION THAT THE COUNTY IS PROPOSING.

THERE ARE CONTRACT MODIFICATIONS THAT BOTH THE VENDOR AND THE COUNTY WOULD LIKE.

THERE ARE CONSTRUCTED MODIFICATIONS.

MOST IMPORTANTLY, IN MY OPINION, THERE ARE EXTENSIONS AND RENEWALS TO CONTRACTS.

NAME CHANGES HAPPEN FREQUENTLY ON YOUR AGENDAS.

CONTRACT CAN BE ASSIGNED TO ANOTHER VENDOR, YOU WILL SEE THOSE ON YOUR AGENDAS.

FINALLY, THE COUNTY OR THE VENDOR COULD CHOOSE TO TERMINATE THE CONTRACT.

THE SINGLE BIGGEST CHANGE AS I READ THE NEW MANUAL AS COMPARED TO OUR EXISTING POLICY IS THAT THE NEW MANUAL DOESN'T MENTION COMMISSIONERS COURT APPROVAL FOR ANY OF THESE MODIFICATIONS.

OUR EXISTING POLICY REFERENCES COURT APPROVAL NO LESS THAN FOUR TIMES.

SO I THINK IT WILL BE IMPORTANT AS WE MOVE FORWARD THAT THE COURT DELIBERATE.

I PERSONALLY DON'T RECOMMEND THAT.

I RECOMMEND THAT ANY CONTRACT MODIFICATION GOES TO COURT.

AND IT COULDN'T BE MOST OFTEN, THEY'LL BE ON CONSENT ANYWAY.

BUT, FOR INSTANCE, IF YOU INCREASE THE DOLLAR AMOUNT OF THE CONTRACT BY AN AMOUNT THAT'S LEGALLY AVAILABLE TO YOU, IF IT DOESN'T GO TO COURT THE BUDGET OFFICE WILL HAVE NO WAY OF KNOWING IT HAPPENED.

I DON'T KNOW IF THE DA WOULD KNOW IF WE CHANGED THE NAME OF A VENDOR, I GUESS IT WOULD GET FILED FOR RECORD AT SOME POINT,

[00:40:03]

THAT'S SOMETHING THAT WE'LL NEED TO CONSIDER.

>> DAVID, I'M CURIOUS.

THIS IS A PRETTY SIGNIFICANT POLICY DECISION CHANGE.

I'M CURIOUS WHERE THAT WAS INITIATED BECAUSE, I MEAN, I GET IT SOMETIMES THESE CONTRACTS ARE MINOR.

BUT AT THE END OF THE DAY OUR NAMES ARE THERE AND WE'RE TO BE HELD ACCOUNTABLE FOR THESE THINGS.

IS THIS SOMETHING THAT WAS SPECIFICALLY PROPOSED AS PART OF A SPECIFIC POLICY OR JUST KIND OF AN OVERBROAD SWEEPING POLICY CHANGE?

>> AS I READ THE DRAFT NEW PURCHASING POLICY, I DON'T FIND ANY REFERENCE TO COURT APPROVAL FOR CONTRACT MODIFICATIONS.

I THINK THAT THIS LANGUAGE FAIRLY CLOSELY MIRRORS THE LANGUAGE OF THE PURCHASING GUIDELINES FROM TRAVIS COUNTY.

AND SO PERHAPS THAT'S HOW THEY WORK IN TRAVIS COUNTY.

I JUST OBSERVE THAT WE HAVE NO ANYTHING AS SIMPLE AS NAME CHANGES GOES TO THE COMMISSIONERS COURT CURRENTLY.

>> RIGHT. AND I KNOW WE'RE NOT TAKING ACTION TODAY, YOU'RE PROBABLY JUST LOOKING FOR SOME FEEDBACK.

I WOULD CERTAINLY OBJECT TO COMMISSIONERS COURT REFERRING RESPONSIBILITY TO SOMEBODY ELSE ON CONTRACT CHANGES.

JUST WANT TO REGISTER THAT FOR THE RECORD.

I KNOW, DAVID, YOU'RE NOT SUGGESTING IT.

BUT I WOULD HAVE A CONCERN ABOUT US.

REALLY, I THINK IN A WAY, JUDGE YOU'VE TALKED A LOT ABOUT TRANSPARENCY, THIS JUST GOES COUNTER TO THAT, AND I'M NOT SAYING IT'S YOUR SUGGESTION, JUDGE.

I'M SAYING THAT WHEN CONTRACTS ARE CHANGED WITHOUT A VOTE, WITHOUT SOME FORUM FOR A PUBLIC DISCUSSION, THAT WOULD BE A CONCERN OF MINE.

AGAIN, I'M NOT SAYING IT'S YOUR SUGGESTION, JUDGE.

IT'S COMING, I GUESS FROM THE PURCHASING SIDE, BUT I JUST WANT TO MAKE SURE WE HAVE A FURTHER DISCUSSION ABOUT HOW WE'RE GOING TO LOOK AT THOSE.

>> YES.

>> [OVERLAPPING] MAY I ASK A QUESTION, COMMISSIONER, JUST SO THAT I UNDERSTOOD YOUR POINT.

ARE YOU SUGGESTING THAT WE GO WITH THE MODIFICATION OR YOU'RE SAYING, NO, YOU OPPOSE THE MODIFICATION?

>> I'M SAYING I OPPOSE THE MODIFICATION, BECAUSE IT SOUNDS LIKE THE PROPOSAL IS THAT SOME OF THESE CHANGES TO THE CONTRACTS CAN BE DONE BY STAFF WITHOUT COMING TO COMMISSIONERS COURT, AND I'M SAYING I WOULD BE OPPOSED TO THAT.

>> OKAY.

>> THAT MAKES SENSE?

>> YES.

>> OKAY.

>> I THINK IT'S REALLY IMPORTANT, OBVIOUSLY, THAT COMMISSIONERS KNOW WHAT'S GOING ON.

LIKE HE SAID, MOST OF THE THINGS ARE GOING TO BE IN CONSENT IF IT'S A NAME CHANGE OR SOME BUSINESS GOT BOUGHT OUT BY ANOTHER BUSINESS, BUT IT'S REALLY IMPORTANT.

A LOT OF THESE THINGS OFTEN WE TALK ABOUT IN TERMS OF HAVING TO CHANGE CONTRACTS AND AMENDMENTS, THAT'S REALLY IMPORTANT.

BUT IN TERMS OF ASKING WHERE IT'S COMING FROM, CAN WE ASK PATRICIA.

PATRICIA, COULD YOU ANSWER THAT QUESTION? [BACKGROUND]

>> GOOD MORNING.

>> GOOD MORNING.

>> PATRICIA TORRES.

>> JUST TO EXPAND ON WHAT COMMISSIONER RODRIGUEZ WAS ASKING, WHERE THE RECOMMENDATION CAME FROM OR THE REASONING BEHIND THAT?

>> ACTUALLY, THAT IS AN INCORRECT STATEMENT ON THAT SLIDE.

>> I'M SORRY, WHAT'S AN INCORRECT STATEMENT?

>> THAT'S A CHANGE OR THE RECOMMENDATION BY THE PURCHASING DEPARTMENT.

THE MODIFICATION SECTION IS NOT STATING THAT VIRTUAL AGENT WILL PROCESS IT, AWARD OR APPROVE ALL MODIFICATIONS.

PER THE CODE, COMMISSIONERS COURT APPROVES ANYTHING OVER 50, AND IT IS OUR PROCESS TO GO THROUGH EITHER THE DISTRICT ATTORNEY'S OFFICE OR MODIFICATION, CHANGE ORDER AND TAKE IT TO COMMISSIONERS COURT FOR APPROVAL.

BUT MY COMMENT TO DAVID WAS THAT IF WE NEEDED TO CLARIFY THIS AND BRING IN THE LANGUAGE FROM THE PREVIOUS PURCHASING MANUAL, AND JUST TO BE MORE EXPANDABLE ON THAT, WE WOULD DO THAT.

BUT SINCE THIS IS A DRAFT

>> RIGHT. WE KNOW THAT'S THE CURRENT PRACTICE.

BUT THESE ARE RECOMMENDATIONS FOR NEW MANUAL, CORRECT? THAT DAVID READ THROUGH AND FOUND THAT IT'S IN THERE.

>> IT IS THERE, BUT IT'S NOT STATING THAT THE VIRTUAL AGENT WILL APPROVE.

IT'S JUST NOT AS CLEAR IN THAT SECTION.

I NEED TO REITERATE THAT COURT DOES APPROVE. [OVERLAPPING]

>> AND WILL CONTINUE.

WE AS THE COURT WANT TO MAKE SURE THAT THAT'S SOMETHING THAT WE ARE PUBLICLY STATING THAT WE ARE GOING TO CONTINUE TO APPROVE.

>> YES.

>> OKAY. THANK YOU.

>> YOU'RE WELCOME.

>> LARRY, CAN YOU COMMENT? WELL, MAYBE I SHOULD.

[00:45:02]

>> OKAY.

>> THANK YOU.

>> NOW WE'LL BEGIN THE DISCUSSION, WHICH WAS REALLY THE REASON I ASKED TO SEE THE DOCUMENT IN THE FIRST PLACE WAS TO SEE [NOISE] WHAT THE LANGUAGE AND POLICY WOULD BE IF THE COMMISSIONERS COURT EVENTUALLY APPROVED A RACE-CONSCIOUS SUBCONTRACTING PROGRAM.

IN THE NEW POLICY, THESE CAN BE FOUND ON PAGES 17-35.

I'M GOING TO START OUT THIS DISCUSSION WHEN WE GET INTO THE MORE DETAILED PROCESS DISCUSSIONS, I'M GOING TO ASK THE DIRECTOR FOR SMALL BUSINESS ENTERPRISE DEPARTMENT, MS. RENE WATSON TO TAKE OVER, BECAUSE SHE'S A SUBJECT MATTER EXPERT FOR ME AT LEAST AND FOR THE COURT.

AGAIN, THE POLICY ASSUMES THE COURT CHOOSES TO ADOPT GRIFFIN AND STRONG RACE AND GENDER CONSCIOUS PROGRAM FOR CONSTRUCTION AND PROFESSIONAL SERVICES ONLY.

GRIFFIN AND STRONG GIVES YOU THE REASONING BEHIND THAT.

FIRST OF ALL, THE DATA FOR OTHER SERVICES AND GOODS WASN'T SUFFICIENT TO JUSTIFY A SUBCONTRACTING RACE-CONSCIOUS PROGRAM.

BUT ALSO THEY NOTED THAT TYPICALLY THERE ARE FEWER SUBCONTRACTING OPPORTUNITIES FOR THOSE TWO VARIETIES OF PROCUREMENT.

AS PROPOSED, THIS WILL BE WHAT'S CALLED A NARROWLY TAILORED PROGRAM.

THAT GETS A LITTLE BIT COMPLICATED, BUT IT MEANS THIS ISN'T JUST A SWEEPING.

WE NEED 30 PERCENT SUB-CONTRACTING ON ALL TYPES OF PROCUREMENTS.

THIS WILL ACTUALLY BE DETERMINED BASED ON AVAILABILITY ON A CONTRACT BY CONTRACT BASIS.

THE POLICIES SPECIFICALLY SAYS IT DOESN'T APPLY WHEN SUBCONTRACTING OPPORTUNITIES DO NOT EXIST, THAT'S FAIRLY SELF-EVIDENT.

OR WHEN THERE ARE LESS THAN THREE AVAILABLE MINORITY OR WOMEN BUSINESS FIRMS THAT CAN PERFORM WHAT IS CALLED A "COMMERCIALLY USEFUL FUNCTION" I ASSUME THAT'S A TERM OF LEGAL REFERENCE.

I'LL DEFER THE SEVERAL LAWYERS THAT ARE IN THE ROOM RIGHT NOW.

JUST TO REMIND THE COURT, THIS IS FROM THE GRIFFIN AND STRONG STUDY.

AS YOU CAN SEE, FOR SUB-CONTRACTING PROGRAM, THEY FOUND THAT STATISTICALLY SIGNIFICANT DISPARITIES WERE OBSERVED IN CONSTRUCTION FOR AFRICAN-AMERICAN OWN SUBCONTRACTORS, ASIAN-AMERICAN SUBCONTRACTORS, HISPANIC SUBCONTRACTORS, AND NATIVE [MUSIC] AMERICAN SUBCONTRACTORS.

I DON'T KNOW IF THAT'S AN EDITORIAL COMMENT [LAUGHTER] FROM THE FORMER SECRETARY OR NOT.

PROFESSIONAL SERVICES THE SAME WHAT'S FOUND FOR AFRICAN-AMERICAN AND NATIVE AMERICANS.

CONTRACT BY CONTRACT BASIS, YOU WOULD HAVE TO EVALUATE FOR ONLY THOSE CATEGORIES, THE REQUIRED SUBCONTRACTING COMPONENT.

[NOISE] ACCORDING TO HOLLAND AND KNIGHT, YOU HAVE TO ALLOW FOR A GOOD FAITH EXCEPTION.

THEY GIVE SOME EXAMPLES SUCH AS TRYING TO ASSIST MINORITY SUBCONTRACTORS AND OBTAINING BONDING INSURANCE OR LINES OF CREDIT, ASSIST THEM IN OBTAINING THE EQUIPMENT AND SUPPLIES AND MATERIALS THEY WOULD NEED TO PERFORM THE WORK, AND ASSISTANT BY THE PRIME IN THOSE AREAS.

THEN OBSERVING WHETHER OTHER BIDDERS WERE ABLE TO ACHIEVE YOUR TARGETED SUBCONTRACTING GOALS.

THE INITIAL DETERMINATION OF COMPLIANCE WOULD BE MADE BY THE SMALL BUSINESS ENTERPRISE DEPARTMENT.

ALSO THE POLICY ENVISIONS THAT THIS COULD BE APPEALED BY THE BIDDER.

>> DAVID, JUST REAL QUICK. JOSH, CAN YOU HEAR ME?

>> YES.

>> DAVID, THE COURT, I BELIEVE, SATISFIED AROUND $2.5 MILLION FOR A BONDING ASSISTANCE PROGRAM.

HAVE WE MADE ANY PROGRESS IN TERMS OF THERE'S MULTIFACETED, IT'S A COLLABORATIVE EFFORT.

THE BONDING ASSISTANCE PROGRAM IDEA WOULD HAVE THE CITY PARTICIPATE, UHS PARTICIPATE OTHER GOVERNMENTAL ENTITIES AND EVEN THE BANKS ARE WILLING TO PUT IN MONEY.

THEY WANTED TO SEE THE COUNTY PUT IN THERE, SO I THINK THE CITY OF SAN ANTONIO SET ASIDE 500,000.

[00:50:01]

I THINK IT STARTS WITH AN R, I WANT TO SAY SHE'S NOT MAY CREDIT, BUT IT'LL COME TO ME AND SAY MOBILIZATION.

THAT'S WHAT IT IS MOBILIZATION MONEY.

IS THERE SOMETHING IN POLICY THAT WE CAN HELP THOSE BUSINESSES THAT HAVE NOT BEEN CONTRACTED WITH THE COUNTY, THE MOBILIZATION OR EVEN MAKE THAT AVAILABLE FOR ALL SMALL BUSINESSES BECAUSE WE'RE POTENTIALLY GETTING TO THE END OF THE USEFULNESS OF THE DATA? I KNOW LARRY HAD SAID THAT THERE WASN'T A HARD AND FAST DEADLINE OF FIVE YEARS.

HOWEVER, I THINK THE QUESTION IS, WOULD YOU STAKE YOUR COUNTY MANAGER REPUTATION, YOUR DISTRICT ATTORNEY REPUTATION, THAT THE FIFTH CIRCUIT WOULD TAKE DATA GREATER THAN FIVE YEARS? I MEAN, I WOULD SAY 90 PERCENT OF THE TIME, WE'D SAY THAT THEY WOULD SAY NO TO ANYTHING OVER FIVE YEARS.

MAYBE 10 PERCENT IF THERE'S SOME SORT OF THING.

BUT IT JUST THOSE QUESTIONS WITH RESPECT TO THE IMPLEMENTATION, HOW DO WE GET THIS DONE? BECAUSE THAT'S WHAT YOU, DAVID, HAVE TO FIGURE OUT FOR THE COURT, IS HOW DO WE GET THESE THINGS DONE? TALK ABOUT HOW DID WE GET THE EQUIPMENT MATERIAL? TALK ABOUT THE BONDING ASSISTANCE PROGRAM, WHERE ARE WE AT?

>> I'LL ASK RENE TO GIVE YOU THE MOST RECENT UPDATE.

THE LAST TIME I CHECKED IN, IT APPEARED THAT OTHER ENTITIES, EXCUSE ME, WERE PREPARING THEIR OWN INDIVIDUAL BONDING PROGRAMS, BUT I'LL ASK RENE TO GIVE YOU THE UPDATE.

>> GOOD MORNING. RENE WANTS TO THEM SERVE AS THE DIRECTOR OF THE SMALL BUSINESS PROGRAM FOR BEXAR COUNTY.

COMMISSIONER, THIS SLAT PARTICULAR FOR GOOD-FAITH EFFORT OF PLUS TO PRIME CONTRACTORS AND PRIME VENDORS.

YOUR QUESTION SUPPLIES TO THE CAPACITY BUILDING PROGRAMS WE WOULD ADMINISTER HERE AT BEXAR COUNTY AND IT'S A LITTLE BIT DIFFERENT.

OUR PART OF OUR RECOMMENDATIONS, WE WILL BE BRINGING BACK TO THE COURT IS TO IMPLEMENT THE BONDING AND TECHNICAL ASSISTANCE PROGRAM.

PROBABLY AS PART OF THE CONVERSATION WE'LL HAVE IN THE SECOND ITEM THIS MORNING FOR SUPPLY ESSAY WHEN WE'RE TALKING ABOUT CAPACITY BUILDING.

BUT THIS GOOD-FAITH EXAMPLE HERE, REALLY IT WILL BE APPLYING TO YOU GET CREDIT.

YOU'LL GET CREDIT FOR WHAT YOU DO AS A PRIME CONTRACTOR.

IF YOU CANNOT MEET THE [OVERLAPPING] SUBCONTRACTING GOALS, [OVERLAPPING] YOU WILL HAVE A GOOD FAITH PLAN THAT YOU SUBMIT [OVERLAPPING] FOR THIS.

>> RENE, COULD THOSE PRIME CONTRACTORS CONTRIBUTE TO THE BONDING ASSISTANCE PROGRAM?

>> CORRECT.

>> [OVERLAPPING] BY THE WAY, COULDN'T WE GET THE CITY, THE COLLABORATE WE HAVE INTERGOVERNMENTAL AFFAIRS, WE HAVE MEETINGS WITH THE MAYOR AND JUDGE AND THE STAFF AND THE COMMISSIONERS AND THE COUNCIL AND OTHER ENTITIES BECAUSE IT WOULD MAKE MORE SENSE TO MITIGATE RISK BY SPREADING THE FUNDS FURTHER WITH A BIGGER POOL.

I THINK WE WANT TO GET THAT PROGRAM INTO SOMETHING LIKE A $10 MILLION PROGRAM AND THAT WOULD ALLOW MORE OPPORTUNITY, RIGHT?

>> CORRECT. WE HAVE AN RFP THAT WE SUBMITTED TO PURCHASE IN ABOUT A YEAR AGO TO PUT THAT OUT ON THE STREET AND WE CAN BRING THAT BACK FOR ESTABLISH A BONDING AND COLLATERAL POOL PROGRAM, WHICH WE WILL BE BRINGING BACK AS PART OF THE RECOMMENDATIONS ONCE THE COURT GIVES DIRECTION ON A RACE-CONSCIOUS PROGRAM BECAUSE SOME OF THOSE ELEMENTS APPLY.

THE CITY OF SAN ANTONIO CURRENTLY HAS A BONDING AND COLLATERAL POOL PROGRAM BECAUSE THEY HAVE A RACE-CONSCIOUS PROGRAM.

IT IS OPEN TO THE COMMUNITY, BUT WE NEED TO MAKE SURE AS WE GO DOWN THIS ROW BETWEEN RACE-NEUTRAL AND RACE-CONSCIOUS, HOW THOSE PROGRAMS WOULD BE DEVELOPED, BECAUSE WE HAVE LIMITED FUNDS, LIMITED FINANCING, THEIR CRITERIA FOR PARTICIPATION HAS TO BE VERY NARROWLY TAILORED TO THE INDUSTRIES AND CATEGORIES WE WOULD NEED TO HELP WITH CAPACITY BUILDING.

WE WILL BE BRINGING THAT BACK [OVERLAPPING] TO YOU FOR A RECOMMENDATION.

>> BY THE WAY, AT COURT, MY THOUGHT ON MOBILIZATION MONEY, WHICH IS WHAT IN THE CONSTRUCTION INDUSTRY IS THE MONEY YOU SET ASIDE TO BUY MATERIALS AND TO PREPARE TO SERVE AS A CONTRACT, WHICH IS A HUGE THING FOR A LOT OF CONTRACTORS.

I ACTUALLY THINK THAT COULD BE OPEN TO ALL SMALL BUSINESSES.

I DON'T NECESSARILY THINK THAT HAS TO BE USING RACE-CONSCIOUS POLICY.

I THINK THAT IS JUST GOOD FOR SMALL BUSINESSES IN GENERAL.

OKAY. I'LL LET YOU CONTINUE, I'M SO SORRY TO INTERRUPT.

[00:55:04]

>> NO PROBLEM. THEY WERE USEFUL COMMENTS AND CLARIFICATION. THANK YOU, COMMISSIONER.

ON SLIDE 13, THE NEW PROPOSED POLICY DISCUSSES PROMPT PAYMENT DEADLINES.

STATUTORILY, UPON THE RECEIPT OF A COMPLETED INVOICE, THE COUNTY HAS 30 DAYS TO PAY.

BUT INTERNALLY, WHAT THE POLICY ENVISIONS IS THAT ONCE A DEPARTMENT RECEIVES A COMPLETED INVOICE, THEY HAVE FIVE DAYS TO REVIEW IT.

THEN THEY WOULD SUBMIT IT TO THE AUDITOR WHO HAS 15 DAYS TO CUT THE CHECK, ONCE THE VENDOR RECEIVES IT, THEY HAVE 10 DAYS.

ONCE THE PRIME, VENDOR RECEIVES THE PAYMENT, THEN HAVE 10 DAYS TO PAY THEIR SUBS.

THERE ARE SOME OTHER CONSIDERATIONS JUST GENERALLY I WANT TO TALK ABOUT, ONE IS.

>> DAVID, LET ME JUST, I APOLOGIZE.

IF I'M LOOKING AT THE SLIDE, MY ISSUE IS GOVERNMENT CODE 20-51 IS VIOLATED JUST IN OUR SLIDE BECAUSE IT'S LIKE 33 DAYS.

WOULD IT MAKES SENSE MAYBE TO LOOK AT GIVING THE AUDITOR MORE STAFF, THEN MAYBE WE COULD CUT THAT TO 10-12 DAYS INSTEAD OF 15 DAYS, AND THEN WE COULD BE 30 DAYS COMPLIANT.

>> THE FIRST TWO BULLETS, REALLY I SHOULD VOTE THE SECOND BULLET NOTIFICATION OF INCOMPLETE INVOICE TO VENDOR.

ONCE YOU DO THAT, YOUR CLOCK HASN'T STARTED TICKING YET.

IT'S UPON THE RECEIPT OF A COMPLETED INVOICE THAT YOU'VE GOT 30 DAYS.

IF YOU TAKE OUT THAT THREE DAYS, THEN THEORETICALLY YOU'RE STILL WITHIN THE 30 DAYS DEADLINE.

HOWEVER, I'M GOING TO MAKE A SUGGESTION ON THE NEXT SLIDE ABOUT ONE OF THE INEFFICIENCIES OF OUR CURRENT PAY PROCESS THAT I THINK COULD EASILY IMPROVE IT, AND MAYBE WE CAN TALK ABOUT IT THEN, COMMISSIONER.

>> GREAT.

>> OKAY, OR MAYBE NOT. THERE WE GO.

I'M GOING TO BE DISCUSSING SOME OF THE ISSUES REGARDING ALL OF THIS.

FIRST OF ALL, I THINK THAT WE'VE BRIEFED YOU ALL ON A RECENT US DISTRICT COURT IN TEXAS OPINION, THAT CALLS INTO QUESTION.

FIRST OF ALL, LET ME SAY IT'S JUST AN OPINION.

IT DOESN'T YET CARRY THE FORCE OF LAW.

IT WAS IN THE NORTH DISTRICT OF US DISTRICT COURT OF TEXAS.

BUT BASICALLY, THE OPINION SAID THAT YOU NEED TO BE ABLE TO IMPLEMENT A RACE-CONSCIOUS PROGRAM.

IN THAT COURT'S OPINION, YOU HAVE TO BE ABLE TO PROVE INTENTIONAL DISCRIMINATION IN THE PAST.

IF THEY SPECIFICALLY SAID IT'S NOT SUFFICIENT TO FIND STATISTICAL, YOU HAVE TO PROVE THAT IT WAS INTENTIONAL AMONG SOME OTHER CONSIDERATIONS.

AGAIN, IT'S MERELY AN OPINION AT THIS POINT.

YOU'VE ALSO BEEN ADVISED BY GROUPS WHEN YOU'RE DISPARITY STUDY ATTORNEYS, THAT THERE ARE RELATED MATTERS IN FRONT OF THE US SUPREME COURT, AND WE EXPECT A RULING ON THOSE MATTERS WITHIN A WEEK.

SO YOU'VE BEEN ADVISED TO WAIT TO FORMALLY IMPLEMENT ANY RACE-CONSCIOUS CONTRACTING PROGRAM UNTIL THAT OPINION OR THOSE TWO OPINIONS ARE RENDERED.

WE'LL GET INTO A LITTLE DETAIL, I'LL LET RENEE TALK TO YOU ABOUT SOME OF THE CHALLENGES WE'VE EXPERIENCED REGARDING DATA COLLECTION AND HOW WE NEED TO MAKE IMPROVEMENTS THERE BECAUSE, WITHOUT THE DATA, YOU CAN'T DO ANYTHING. AGAIN.

>> DAVID, LET ME JUST ASK YOU A QUICK QUESTION ABOUT THIS DATE.

AGAIN, WE LOOK AT DECEMBER 31ST OF 2023 AS BEING WITHIN THAT FIVE-YEAR WINDOW ONCE WE GO OVER IT.

MY LAYMAN COMMON SENSE JUDGMENT IS THE COURTS ARE MORE LIKELY TO SAY OUR DATA IS NOT TAILORED STRICTLY.

OBVIOUSLY, THEY'RE GETTING TIGHTER AND TIGHTER WITH THIS FIFTH CIRCUIT YOU JUST MENTIONED.

THE RULINGS ARE SET TO COME OUT IN JUNE.

DOES THAT MEAN LET'S JUST ASSUME THAT THEY COME OUT THE SUMMER? DOES THAT ASSUME JUST POTENTIALLY, THAT WE WOULD ONLY BE ABLE TO DO RACE-CONSCIOUS POLICY BETWEEN, AUGUST AND DECEMBER? BECAUSE THAT IS THE ASSUMPTION I THINK, AND IT IS A CONSERVATIVE APPROACH TO NOT GETTING SUED UNDER THE STRICT SCRUTINY STANDARD, AND THEREFORE, WOULD IT NOT BE PRUDENT OF US TO GO AHEAD AND PUT INTO THE BUDGET?

[01:00:02]

GO AHEAD AND PUT IT INTO THE BUDGET.

ANOTHER DISPARITY STUDY BECAUSE WE ARE GETTING TO THAT.

BECAUSE FRANKLY, THE STAFF SLOW WALK THIS THING.

WE JUST DRAGGED OUR FEET AND WE TO ME, JUST DRAG OUR FEET ON THIS THING.

SO IN LIGHT OF US DRAGGING OUR FEET, IF THE COURT WANTS TO DO THIS, SHOULDN'T WE GO AHEAD AND PUT IN ANOTHER DISPARITY STUDY, THE CITY OF SAN ANTONIO I HEARD, IT'S ALREADY DOING ANOTHER DISPARITY STUDY.

THEY SENT BEXAR ARE OUT AROUND THE SAME TIME WE DID FIVE YEARS AGO. THOUGHTS ON THAT?

>> WE CAN CERTAINLY INCLUDE FUNDING FOR A NEW DISPARITY STUDY ON THE DATA.

THE OBSERVATION I MADE, AND I MADE IT TO HOLLAND AT NIGHT AS WELL, AS YOU'VE ALREADY OBSERVED, FIVE YEARS IS A RULE OF THUMB.

IT'S NOT STATUTORILY OR LEGALLY A DEFINITIVE NUMBER.

BUT I WOULD ARGUE, COMMISSIONER, THAT EVEN IF WE DO IN NEW DISPARITY STUDY TODAY, YOU'RE STILL GOING TO PRIMARILY END UP RELYING ON THE DATA WE ALREADY USED IN THE OLD ONE.

WHY IS THAT, DAVID? WELL, IT'S BECAUSE I WOULD ARGUE THAT OUR NORMAL PURCHASING PRACTICES AND PROCEDURES AND HABITS WERE COMPLETELY DISRUPTED DURING TWO COVID YEARS, WE WERE MAKING TENS OF MILLIONS OF DOLLARS OF PURCHASES AND IT WAS UNDER EMERGENCY CIRCUMSTANCES.

FOR INSTANCE, WHEN WE DISCOVERED WE NEEDED OVER 5,000 FACE MASKS A DAY FOR THE ADULT DETENTION CENTER, AT A TIME WHEN EVERYONE IN THE COUNTRY NEEDED FACE MASKS, WE DIDN'T PUT OUT, THIS WASN'T A LOW BID.

IT WAS FINE ME SOMEBODY WHO'S GOT 100,000 MASKS TODAY.

MANY OF OUR PURCHASES FOR PPE THAT WE HANDED OUT TO SMALL BUSINESSES AND USED OURSELVES, MANY OF THOSE PURCHASES WERE MADE UNDER THOSE GUIDELINES.

DURING THAT SAME TIMEFRAME, WE ALSO HAD WINTER STORM YEARLY AND ACQUISITION OF GENERATORS AND OTHER SUPPLIES.

SO I WOULD ARGUE, EVEN THOUGH WE COULD USE THAT DATA, IT'S NOT GOING TO BE REFLECTIVE OF OUR NORMAL PURCHASING HABITS.

HOWEVER, I'M NOT A LAWYER, SO YOU'RE RIGHT TO ASK THOSE QUESTIONS.

I'M CERTAINLY NOT A LAWYER WITH EXPERTISE IN THE AREA OF DISPARITY STUDIES, BUT WE CAN CERTAINLY INCLUDE FUNDING FOR THE NEXT DISPARITY STUDY IN THE UPCOMING BUDGET COMMISSIONER THE THIRD BULLET FOR CONSIDERATION IS IF YOU ADOPT A PROGRAM, IT WILL BE ADMINISTERED ON A CONTRACT-BY-CONTRACT BASIS.

THAT'S GOING TO REQUIRE ADDITIONAL REVIEW OF A PROPOSED PROCUREMENT AND GOAL SETTING.

THAT MIGHT ADD SOME TO OUR TIMELINE ON THE PROCUREMENT SIDE.

MAY OR MAY NOT HAVE A STAFFING NEED AS WELL.

FINALLY, I WOULD SUGGEST THAT THE PROPOSED NEW POLICY FOR PROFESSIONAL SERVICES NEEDS TO REFLECT, I BELIEVE IT'S THE 10 CATEGORIES OF PROFESSIONAL SERVICE THAT STATE LAW SAYS MAY NOT BE SELECTED ON ANY CRITERIA OTHER THAN QUALIFICATIONS.

I FORGET THE LIST OF IT BUT INCLUDES: ARCHITECTS AND ENGINEERS, AND A FEW OTHERS.

I WOULD SUGGEST FOR CLARITY THAT THE POLICIES SPECIFICALLY CALL OUT THOSE 10.

>> JUDGE, COMMISSIONER DAVID.

I JUST WANTED TO, ON THE WRAPPING UP OF THIS SLIDE, INDICATE THAT TO ME, IS PRETTY CLEAR THAT NOBODY WANTS TO RISK LITIGATION AND THERE'S A LOT OF RISK BECAUSE THESE THINGS ARE HEAVILY LITIGATED.

I WOULD SAY THAT THE PRUDENT THING FOR THE COURT TO DO IS TO PUT THIS IN THE BUDGET FOR ANOTHER RFP, JUST LIKE THE CITY OF SAN ANTONIO JUST DID, AND OPEN THE DOOR TO WHETHER OR NOT THERE COULD BE SHARING OF COST AND OPPORTUNITY OF POLICY AS THERE SHOULD HAVE BEEN FIVE YEARS AGO OR SIX YEARS AGO, SEVEN YEARS AGO MAYBE WHEN WE FIRST STARTED TO DO IT AND TRY TO WORK COLLABORATIVELY, IF POSSIBLE.

IF NOT, THEN WE MOVE FORWARD BY OURSELVES.

BUT CERTAINLY WITH UHS, I THINK THAT IS A AREA WHERE WE HAVE TWO BILLION DOLLARS IN BUDGETARY OVERSIGHT AND NOT NECESSARILY ENOUGH DATA, BUT WE DO HAVE SOME DATA.

BUT I THINK THAT IS SOMETHING ALSO THAT WE SHOULD LOOK AT AND HOW THEY CAN

[01:05:04]

I THINK WE NEED TO GO AHEAD AND PREPARE FOR THAT, AS WELL AS THE STAFFING BUDGETARY IMPLICATIONS OF FASTER PAY AND ALL OF THE OTHER RECOMMENDATIONS. THANK YOU.

>> THANK YOU. ONE, TWO, THREE, FIFTH BULLET.

THE NEW PROPOSED POLICY DOES NOT DISCUSS DE-BUNDLING.

WHAT IS DE-BUNDLING? DE-BUNDLING IS A PROCESS BY WHICH, I'LL GIVE AN EXAMPLE, LET'S SAY WE'RE ACQUIRING A NEW PRECINCT FOR COUNTY OFFICE BUILDING, DE-BUNDLING SUGGESTS THAT THAT PROCUREMENT BE REVIEWED TO SEE IF WE SHOULD BID OUT CERTAIN SUB-TRADES AND SPECIALTIES SEPARATELY IN AN EFFORT TO INCREASE MINORITY PARTICIPATION.

THAT CONTRACT REVIEW WILL ALSO TAKE ADDITIONAL TIME AND CONSULTATION BETWEEN THE SMALL BUSINESS ENTERPRISE DEPARTMENT PURCHASING POTENTIALLY LEGAL, AS WELL AS THE SPONSORING OFFICER DEPARTMENT.

JUST KEEP IN MIND THAT THAT IS A PART OF WHAT WE WOULD PROPOSE UNDER A NEW SUBCONTRACTING PROGRAM.

REGARDING THE PROMPT PAYMENT, ONE THING THAT HAPPENS SOMETIMES IS THAT WE DON'T HAVE STANDARDIZED LANGUAGE ABOUT TO WHOM AN INVOICE SHOULD BE SENT.

IN OTHER WORDS, I WOULD RECOMMEND IT SHOULD ALWAYS BE THE DEPARTMENT THAT'LL BE REVIEWING THE INVOICE.

BECAUSE IF IT GETS SENT TO THE AUDITOR, THE AUDITOR IS GOING TO FIND THE DEPARTMENT, SEND IT BACK TO THE DEPARTMENT BECAUSE THEY'RE THE ONES WHO CAN SAY WHETHER THE INVOICE IS COMPLETE OR NOT, GETS SENT BACK TO THE AUDITOR.

I WOULD JUST RECOMMEND THAT.

THAT'S A FAIRLY EASY CHANGE, I THINK, THAT WE CAN MAKE ON OUR CONTRACTS.

>> LEO, YOU CAN COUNT ON THIS.

DOESN'T THIS SEEM LIKE ONE OF THE BIGGEST THINGS AND THE EASIEST THINGS THAT WE CAN DO AS OPPOSED TO LIKE, WE NEED MORE STAFF OR WHATEVER, BECAUSE IT SEEMS LIKE IT'S REALLY A WASTE OF TIME, BASED ON WHAT YOU WERE TALKING ABOUT LAST TIME, THAT IT GOES BACK AND FORTH AND YOU'RE TRYING TO FIGURE OUT WHO IT BELONGS TO?

>> YES, COMMISSIONER. THERE ARE BASED ON WHAT TYPE OF DIFFERENT INVOICES, SOME ARE SENT DIRECTLY TO THE DEPARTMENT.

FOR EXAMPLE, LIKE CAPITAL PROJECTS.

THERE NEEDS TO BE AN ENGINEER SIGNING OFF TO GO IN THERE MAKE SURE EVERYTHING WAS DONE THAT WAS SUPPOSED TO ARCHITECTURAL WORK, THINGS OF THAT SORT.

A LOT OF THAT IS HAPPENING ALREADY.

THERE ARE SOME OCCASIONS WHERE IT DOES GO EXACTLY OR TO OUR OFFICE, BUT THOSE ARE LIMITED TYPE.

>> WE NEED TO MAKE SURE THAT THIS DOESN'T HAPPEN, THAT THEY ALL GO TO THE APPROPRIATE DEPARTMENT.

BECAUSE IT IS ON THE DEPARTMENT IF IT'S DELAYED.

>> YES, THAT'S CORRECT.

>> THANK YOU.

>> IF I JUST COULD ADD SOMETHING TO THAT TOO.

I KNOW SOME OF THESE ISSUES WE'RE TALKING ABOUT TODAY, WE HAVE TO BE CAREFUL BECAUSE THERE'S STILL UNSETTLED WALL WHEN IT COMES TO SMBE, BUT COMMISSIONER CLAY-FLORES POINT, I THINK THERE ARE PROCESSES THAT WE CAN IMPROVE WITHIN THE COUNTY THAT ARE ALMOST DIVORCED FROM THAT ISSUE.

TO THE EXTENT THAT WE NEED TO REVIEW THAT DURING THE BUDGET PROCESS, DAVID.

IF IT'S A MATTER OF MORE HANDS-ON DECK IN A PARTICULAR DEPARTMENT, I THINK WE NEED TO GET THAT FIXED AS SOON AS POSSIBLE.

BECAUSE THE VENDORS ARE A LOT OF TIMES SMALL BUSINESSES THAT ARE WAITING TO GET PAID, AND THEY JUST GET CAUGHT UP IN THIS BLACK HOLE SOMETIMES FOR MONTHS WITHOUT GETTING PAID.

I JUST WANTED TO MAKE SURE WE UNDERSCORE THAT POINT THAT I THINK, WHILE WE'RE TALKING ABOUT UPDATING THESE POLICIES AND PROCEDURES, I THINK PROCESSES CAN BE IMPROVE AND DON'T HAVE TO WAIT NECESSARILY.

I JUST WANTED TO MAKE SURE THAT YOU NOTED THAT DAVID, AS WE GO THROUGH THE BUDGET PROCESS.

YOU'RE REVIEWING, I KNOW YOUR TEAM IS REVIEWING THE DIFFERENT DEPARTMENT REQUESTS, BUT IF IT'S A MATTER OF MAKING SURE THERE'S ENOUGH FOLKS TO REVIEW CONTRACTS OR WHATEVER IT MAY BE PROCESSED CONTRACTS, I THINK THAT'S SOMETHING WE NEED TO FIX JUST IN TERMS OF DOING BUSINESS WITH THE COUNTY, MAKING IT MORE USER-FRIENDLY. THANK YOU.

>> THAT WAS DEFINED. AN EXAMPLE OF THAT, COMMISSIONER, IS WE CAN DO DE-BUNDLING LEGALLY NOW.

WE'LL DISCUSS THAT WITH PRIMARILY THE SMBE DEPARTMENT, SMALL BUSINESS ENTERPRISE DEPARTMENT DURING THE BUDGET PROCESS.

FINALLY, YOU ALREADY BROUGHT IT UP, THEIR STAFFING AND POTENTIAL BUDGETARY IMPLICATIONS TO ANY OF THESE PROPOSED CHANGES.

[01:10:05]

>> THANK YOU, DAVE. AGAIN, GOOD MORNING. RENEE WATSON.

SOME OF THE CHANGES THAT'S IN THIS POLICY THAT'S BEING PRESENTED ARE REFLECTED AND PRETTY MUCH COPIED FROM TRAVIS COUNTY.

GRIFFIN AND STRONG MADE A RECOMMENDATION FOR 8.0 THAT COMMISSIONERS COURT ADOPTED IN DECEMBER 2021.

ALL OF THE ISSUES YOU'VE TALKED ABOUT THIS MORNING ARE ALREADY OUTLINED IN THAT POLICY.

UNFORTUNATELY, THE POLICY HAS NOT BEEN IMPLEMENTED BY THE PURCHASING DEPARTMENT, WHICH HAS RESULTED IN DATA CHALLENGES, DATA COLLECTION CHALLENGES, AND A LACK OF PROCESS IMPROVEMENTS.

TODAY'S CONVERSATION IS TAKING OUR 8.0 RACE-NEUTRAL PROGRAM AND CONSIDERING A RACE-CONSCIOUS PROGRAM TO ADD TIER TO BEXARCOUNTY, AND I'LL TRY TO PUT THIS PRESENTATION SO WE CAN BE CLEAR ON THE CONVERSATIONS WE'RE GOING TO HAVE ON THE NEXT FIVE OR SIX SLIDES, BETWEEN A RACE-NEUTRAL PROGRAM, WHICH APPLIES TO ALL BUSINESSES, MINORITY AND NON-MINORITY SMALL AND LARGE ABOUT THE COUNTIES BUSINESS PROCESS.

THESE CHANGES BEING PRESENTED HERE AS PART OF GRIFFIN AND STRONG PART 2 OF THEIR PRESENTATION IS INTRODUCING THE RACE-CONSCIOUS ASPECT.

COMMISSIONER CALVERT TALKED ABOUT THE DISPARITY STUDY.

THE CITY OF SAN ANTONIO HAS COMPLETED THEIR DISPARITY STUDY AND THEY ARE LOOKING TO UPDATE THEIR ORDINANCE RIGHT NOW.

IT IS SCHEDULED TO GO BEFORE CITY COUNCIL IN AUGUST WITH CHANGES TO THE ORDINANCE FOR THEIR RACE-CONSCIOUS PROGRAM IN DECEMBER SO THEY'VE ALREADY COMPLETED THEIR DISPARITY STUDY.

IN THE MARKETPLACE, WHEN WE TALK ABOUT AVAILABILITY, GRIFFIN AND STRONG WENT IN AND LOOKED AT THE UTILIZATION OF HOW COUNTY SPENDS THEIR DOLLARS FOR FISCAL YEARS 15 THROUGH 19, FIVE YEARS WORTH OF DATA.

IN THAT REVIEW, WE LOOKED AT LEAST 75% OF THOSE FUNDS BEING SPENT BY BURKE COUNTY AND IN UTILIZATION WAS IN BEXARCOUNTY, OUR MARKETPLACE FOR THIS PROGRAM, IF WE WOULD ENACT IT, WOULD BE ONLY FIRMS IN BEXARCOUNTY.

UNLIKE THE CITY OF SAN ANTONIO IS THE SMSA, THE SAN ANTONIO WATER SYSTEM IS THE SMSA OPPORTUNITY HOME JUST COMPLETED THEIR DISPARITY STUDY IT WILL BE GREATER SAN ANTONIO AREA AND WE LOOK AT AVAILABILITY IN THAT AREA.

PART OF THE REQUIREMENTS FOR THE RACE-CONSCIOUS PROGRAM WOULD BE A WORK FOR DATA COLLECTION FORMS FROM PRIMES AND SUBS AND WHAT WAS MENTIONED EARLIER ABOUT A GOOD FAITH EFFORT.

OUR DEPARTMENT WILL BE RECOMMENDING A INTERNAL WORK GROUP MADE UP OF ALL OF US IN DEPARTMENTS ALSO A GOAL SETTING COMMITTEE MADE UP OF OFFICES AND DEPARTMENTS BECAUSE WE KNOW THAT PLANNING AND PRE-PLANNING WILL HELP OUR PARTICIPATION.

GRIFFIN AND STRONG WHEN THEY RECOMMENDED OUR CHANGES TO OUR POLICY 8.0 ALREADY HAS THAT IN OUR CURRENT POLICY 8.0 FOR SMWBE, SMALL MINORITY WOMEN-OWNED BUSINESS ENTERPRISES ON HOW THAT WOULD WORK.

IT'S ALREADY OUTLINED IN DETAIL THAT WAS APPROVED BY COMMISSIONERS COURT IN DECEMBER 2021.

EACH OFFICE AND DEPARTMENT AFTER THE BUDGET PROCESS, PROBABLY SOMETIME IN SEPTEMBER, WE WILL LOOK AT A FORECAST.

ONE OF THE THINGS WE HAVE TO GET INTO THE BUSINESS OF DOING THIS FORECASTING TO HELP OUR VENDORS TO BE ABLE TO PREPARE TO DO BUSINESS.

WE APPRECIATE PUBLIC WORKS FORECASTS, WE APPRECIATE WHAT WE GET FROM FACILITIES, BUT IT'S NOT ACROSS THE BOARD FROM THE PURCHASING DEPARTMENT FOR A FORECAST.

IT SAYS THAT AT THE BEGINNING OF THE YEAR THAT COUNTY IS GOING TO BE CONTRACTED FOR $304 MILLION.

HOW ARE WE GOING TO SPEND THAT MONEY? HOW DO WE PREPARE FOR THAT? TO MAKE IT MORE TRANSPARENT, PUT THAT ON OUR WEBSITE.

THEN HOW DO WE DOCUMENT OUR EFFORTS FOR OFFICES AND DEPARTMENTS? WHAT PROGRAMS DO WE HAVE A PRIME AND SUB VENDOR COMPLIANCE? WE HAVE B2G NOW, WHICH IS OUR CDMS, CONTRACT DIVERSITY MANAGEMENT SYSTEM.

BUT THAT SYSTEM IS NOT BEING USED BECAUSE THE OWNER OF THE SYSTEM, THE CONTRACTS MODULE, WE DON'T DO ACCURATE DATA COLLECTION AND PUTTING THE INFORMATION IN THE SYSTEM.

WHEN WE LOOK AT SUBCONTRACTORS, SUB SUPPLIER,

[01:15:03]

IT CAN MAKE IT HAPPEN, BUT THAT IS SOMETHING THAT COMES FROM THE PURCHASING DEPARTMENT.

AND THEN WE DO [OVERLAPPING].

>> CAN I ASK A QUESTION REAL QUICK.

>> GO AHEAD, COMMISSIONER CALVERT.

>> THANK YOU SO MUCH. I WANT TO GO BACK RENEE, TO A COUPLE OF THINGS WHERE GRIFFIN AND STRONG'S FINDINGS ON SLIDE 11 ON PAGE 18 OF THEIR DISPARITY STUDY DATA ON THE UNDER-UTILIZATION OF MINORITY WOMEN BUSINESSES AND SUB-CONTRACTING BECAUSE IT'S SUBCONTRACTING, IF NOTED IN CONSTRUCTION AND PROFESSIONAL SERVICES AND I WANT TO BE VERY CLEAR TO THE COURT, WHICH IS A FAIRLY NEW COURT THAT FACILITIES AND PUBLIC WORKS, HAS FAR MORE TO DO WITH THE BEXARCOUNTY DISPARITY STUDY FINDINGS AGAINST CONSTRUCTION FOR AFRICAN-AMERICANS, ASIAN-AMERICANS, HISPANIC-AMERICANS, AND NATIVE-AMERICANS AND IN PROFESSIONAL SERVICES FOR AFRICAN-AMERICANS AND NATIVE-AMERICANS THAN THE PURCHASING AGENT.

THE PURCHASING AGENT OFTEN DOESN'T CONTROL THE PROCESS AND THE SCORING FOR CONSTRUCTION PROFESSIONAL SERVICES BECAUSE THE COMMISSIONERS COURT HAS GIVEN WIDE LATITUDE TO FACILITIES AND PUBLIC WORKS TO WORK THOSE THINGS UP.

THE POLICY IN GENERAL, THE POLICY CHANGES AND THE ADOPTION OF THEM ARE MADE BY THE COMMISSIONERS COURT AND THIS COMMISSIONERS COURT PRIOR TO THIS COMMISSIONERS COURT DID NOT ADOPT THESE CHANGES SO I JUST WANT TO BE CLEAR FOR THE RECORD THAT THIS IS A COURT AND WE CANNOT HAVE STAFF TELLING US THINGS THAT ARE SUPPOSED TO BE ADOPTED BY THE COMMISSIONERS COURT THAT HAVE NOT BEEN ADOPTED BECAUSE OF HOSTILITY TOWARDS OR WHETHER IT WAS HOSTILITY OR WHETHER IT WAS JUST BECAUSE WE DIDN'T HAVE DIVERSITY IN THESE DEPARTMENTS OR WHATEVER IT WAS.

WHATEVER REASON THAT GRIFFIN AND STRONG HAD THESE FINDINGS THOSE THINGS ARE LARGELY DUE TO THE DEPARTMENTS THAT DID NOT HAVE, EVEN UNDER THE RACE-NEUTRAL VERY GOOD FINDINGS FOR THOSE AFOREMENTIONED GROUP.

I JUST WANT TO BE REAL CLEAR THAT A LOT OF THIS DID NOT HAVE TO DO SOLELY WITH THE PURCHASING AGENT.

>> THAT'S CORRECT SIR BUT ONE OF THE QUESTIONS THAT WE WAS TALKING ABOUT WAS DATA COLLECTION AND THROUGH THE BID PROCESS AND THROUGH THE PURCHASING, THE CONTRACTS MODULE FOR INFO WHICH WE USE IS ON AND THE DIRECTION IS GIVEN FROM THE PURCHASING DEPARTMENT.

>> RENEE, LET ME [OVERLAPPING] GO, COMMISSIONER CALVERT, LET ME LET COMMISSIONER CLAY-FLORES TO ASK A QUESTION, PLEASE.

>> I JUST WANTED TO MAKE A COMMENT.

WHAT THE CITY HAS BEEN DOING HAS BEEN BROUGHT UP MANY TIMES TODAY.

FRANKLY, I DON'T KNOW WHY WE ARE BEXARCOUNTY WE ARE DOING WHAT WE NEED TO DO FOR THE INTERESTS OF OUR CONSTITUENTS AND OUR VENDORS.

I JUST WANT TO BE CLEAR ABOUT NOT COMPARING OURSELVES THEY ARE VERY DIFFERENT, THEY DO THEIR THINGS FOR WHATEVER REASONS, AND WE NEED TO MAKE SURE THAT WE'RE DOING WHAT'S IN THE BEST INTERESTS OF OUR VENDORS AND OUR CONSTITUENTS.

I ALSO WANT TO POINT OUT THAT A LOT OF THE THINGS THAT THE STUDY CAME BACK WITH, ARE THINGS THAT THE COUNTY IS DOING WELL AND SO THAT GOES A LOT TO WHAT YOU HAVE DONE.

YOUR CAPACITY HERE IN THE LABS YOU'VE BEEN HERE FOR 23 YEARS SO IN TERMS OF NOTIFICATIONS TO SMWBE AND AGGRESSIVE OUTREACH AND HELPING PEOPLE GET THEIR CERTIFICATIONS.

THOSE ARE THINGS THAT I THINK WE ARE DOING WELL, AND THAT SAYS A LOT ABOUT YOU AND YOUR TEAM, YOUR SMALL ARMY, I WOULD SAY.

THANK YOU FOR THAT, BUT I JUST WANT TO BE MINDFUL THAT WE ARE THE COUNTY AND WE DON'T NEED TO BE COMPARED TO WHAT OTHER PEOPLE ARE DOING FOR WHATEVER THEIR LITTLE POLITICAL AGENDAS OR GAMES ARE. THANK YOU.

>> COMMISSIONER CALVERT, DID YOU WANT TO FOLLOW UP?

>> SURE, THANK YOU, JUDGE.

COMMISSIONER FLORES, I AGREE WITH YOU THAT WE'RE THE COUNTY, BUT I WANT TO EXPLAIN TO YOU WHY THE PREVIOUS HISTORY HAS BEEN BEST PRACTICED FOR GOVERNMENTS TO WORK TOGETHER EFFECTIVELY LEVERAGE.

>> COMMISSIONER COWART THAT WASN'T FOR YOU, SEVERAL PEOPLE HAVE MENTIONED IT.

[01:20:01]

>> COMMISSIONER COWART HAS THE FLOOR, COMMISSIONER COWART GO AHEAD.

>> SURE, I'M NOT TAKING IT PERSONALLY OR ANYTHING LIKE THAT, I JUST WANT TO ILLUMINATE THAT, PART OF IT IS, FOR EXAMPLE, IF WE DO A BONDING ASSISTANCE PROGRAM.

THE COUNTY HAS PUT ASIDE $2.5 MILLION, BUT THERE COULD BE A LOT MORE MONEY TO THAT BONDING ASSISTANCE PROGRAM POT.

THE BIGGEST PARTNER FOR THAT IS POTENTIALLY THE CITY.

THE CITY PUT IN 2.5 MILLION INSTEAD OF 500,000, AND THAT WOULD BE FIVE MILLION.

THAT JUST OPENS UP MORE OPPORTUNITY, AND THOSE WAYS, THAT'S WHERE COLLABORATION CAN BE HELPFUL AND WHY SOMETIMES THEY'RE DONE IN COLLABORATION OR UHS, FOR EXAMPLE.

IT'S JUST ANOTHER GOVERNMENTAL ENTITY TO BRING MORE RESOURCES TO HELP THE SMALL BUSINESSES.

I DON'T TAKE ANY PERSONAL THING ABOUT WHAT YOU SAID, YOU'RE RIGHT, BUT I JUST WANTED TO CLARIFY WHY SOMETIMES OTHER GOVERNMENTAL ENTITIES LIKE THE RIVER AUTHORITY OR WHOEVER ARE BROUGHT INTO THE CONVERSATION.

MAYBE THE RIVER AUTHORITY SHOULD BE SOMEBODY WE BRING IN THE CONVERSATION, BECAUSE CONGRESSMAN CASTRO HAS POINTED OUT JUST HOW POOR THEY'RE SMALL WOMEN MINORITY BUSINESSES PROGRAMS HAVE BEEN, AND WE'RE GIVEN $247 MILLION TO THEM.

I RAISE THAT FOR CONSIDERATION AS WELL.

BUT ANYWAY, I WILL LET RENEE CONTINUE, I KNOW I DID WANT TO SAY ONE LAST THING ON DATA COLLECTION.

THE TRUE HISTORY OF DATA COLLECTION HAS BEEN ONE, I'M NOT SURE THAT COUNTY CAN BE ALL THAT PROUD OF.

THERE HAS BEEN IN MY OBSERVATION, MY PERSONAL OPINION, AND IT'S JUST THAT.

BUT I BELIEVE THAT THERE HAD BEEN A LOT OF GAMES PLAYED WITH RESPECT TO THE DATA AND IT HAS BEEN SHIPPED INTO TINA DEAN SMITH'S OFFICE AND TO RENEE WATSON'S OFFICE, INTO THE AUDITOR'S OFFICE, INTO THE PURCHASING DEPARTMENT, INTO THE TECHNOLOGY, AND ALL OF THESE THINGS REALLY AREN'T IF YOU JUST TAKE 10,000 FEET UP IN THE AIR AND YOU LOOK AT HOW OTHER COUNTIES THAT HAVE IMPLEMENTED THESE THINGS OPERATE.

YES, SOMETIMES THERE ARE ISSUES WITH, AS WAS MENTIONED IN GRIFFIN & STRONG.

BUT I THINK THAT WE HAVE WILLFULLY NOT ADOPTED THE CERTAIN TECHNOLOGIES THAT WE HAVE AVAILABLE FOR THE COUNTY AND HAVE TRIED TO DRAG OUR FEET ON THE DATA, FRANKLY BECAUSE WE'RE EMBARRASSED BY THE DATA.

I THINK WE CAN TURN A NEW CHAPTER, GET INTO THE REALITY OF THE DATA.

I DON'T AGREE NECESSARILY THAT JUST EMERGENCIES HAVE BEEN THE REASON THAT WE DON'T HAVE GOOD NUMBERS, BECAUSE I KNOW FOR A FACT THERE WERE AFRICAN AMERICAN MEDICAL SUPPLY COMPANIES WHO APPROACHED ME DURING THE PANDEMIC AND SAID, "WE ARE AVAILABLE FOR TESTING FOR THIS, FOR THAT, THE OTHER ".

DID WE USE THEM? MAYBE WE DID, I DON T KNOW THAT DATA CAN BEXARTHAT OUT, BUT THERE ARE VENDORS ALL OVER THE PLACE THAT ARE, ESPECIALLY IN A CITY LIKE SAN ANTONIO, DIVERSE THAT WE COULD HAVE USED.

SOMETIMES, WE HAVE TO DO THINGS AND EMERGENCIES, BUT WHATEVER THE DATA IS, WE HAVE TO DEVELOP A TAILORED PROGRAM.

I THINK THAT'S WHERE WE HAVE TO GO AND I THINK WE JUST NEED TO BE HONEST ABOUT THE DATA, IT HASN'T BEEN GOOD. THANK YOU, JUDGE.

>> RENEE, BACK TO YOU.

>> JUDGE.

>> YES THERE.

>> THAT I JUST A NUMBER OF THINGS ABOUT YOUR STAFF AND MY STAFF HAVE BEEN SET.

GRIFFIN & STRONG ON MORE THAN ONE OCCASION SAID, "OUR DATA WITH SOME OF THE CLEANEST DATA THEY HAD SEEN FROM A GOVERNMENTAL ENTITY".

LET'S JUST START THERE, A LOT OF MANPOWER WAS PUT INTO ASSEMBLING THAT DATA AND MAKING SURE IT OCCLUDED APPROPRIATE SOON-BE OPPORTUNITIES AND EVALUATE IT, AND IT CAME BACK AND SAID, "WE COULD DO BETTER." ONE OF THE ISSUES THAT I THINK RENEE IS TRYING TO BRING UP IS WE NEED TO START AS HER POLICY IF ADOPTED WOULD, REQUIRING THE REPORTING OF SUB-CONTRACTING PAYMENTS.

CURRENTLY, THAT HAPPENS WHERE WE CAN FIND OUT ABOUT IT, BUT IT OUGHT TO BE A REQUIREMENT ON THE PRIME VENDOR IN ORDER FOR THEM TO GET PAID THAT THEY HAVE TO REPORT THAT.

I THINK THAT'S THE BOTTOM LINE IS ONE OF THE POLICY CHANGES SHE WANTS TO MAKE. THANK YOU.

>> RENEE, BACK TO YOU.

>> THANK YOU, JUDGE. WE HAVE TWO ROADS THAT WE'RE TALKING ABOUT.

I JUST WANTED TO GIVE A BRIEF UPDATE ON THE RACE-NEUTRAL PROGRAM.

THIS PROGRAM WILL CONTINUE TO APPLY TO PROFESSIONAL SERVICES.

BECAUSE RACE-CONSCIOUS CANNOT APPLY TO PROFESSIONAL SERVICES FOR THOSE 11 DEDICATED AREAS AS OUTLINED IN THE STATE STATUTE AND THAT WE KNOW.

WE WILL CONTINUE OUR RACE-NEUTRAL PROGRAM, WHAT WE HAVE RIGHT NOW.

WHAT WE'VE BEEN DOING ALL OF THIS TIME ON THE RACE-NEUTRAL PROGRAM, WE HAVE PARTICIPATION TARGETS 20% MWBE, 30% SBE.

THERE'S NO FACTOR IN THE EVALUATION IN THE AWARD OF THOSE CONTRACTS.

[01:25:05]

WE NEED, HOWEVER MANDATORY DATA COLLECTION FROM PRIMES AND SUBS.

IN OUR CURRENT POLICY THAT THE COURT AGAIN PASSED IN DECEMBER 2021, GRIFFIN & STRONG ALREADY OUTLINES HOW THE PURCHASING AGENT CAN DO THAT.

ONE OF THE THINGS THAT WE ASKED FOR IN THE BID DOCUMENTS, WE GO TO PRE-BID CONFERENCES AND WE TELL THE BIDDERS OR POTENTIAL BIDDERS THAT YOU WOULD NEED TO GIVE US THIS INFORMATION.

THERE'S THE LANGUAGE THAT NEEDS TO GO IN THEIR CONTRACT THAT SAYS, "YOU NEED TO PROVIDE US THE INFORMATION".

WE'RE NOT TELLING YOU WHAT TO DO, WHO TO USE, JUST TO GIVE US THE INFORMATION.

JUST LIKE WE REQUIRE THEM TO GIVE A W-9, JUST LIKE WE REQUIRE THEM TO TELL US, IF SOMEONE IS ON A PROJECT GIVE US YOUR INSURANCE CERTIFICATE.

WE WANT MANDATORY DATA COLLECTION SO THEN WE CAN POPULATE THE SYSTEMS. WE WILL CONTINUE TO ACCEPT ALL CERTIFICATIONS THAT WE CAN VERIFY.

WE WILL CONTINUE TO WORK WITH BCIT ON THE INTERFACE.

THE INTERFACE CURRENTLY DOES NOT WORK BECAUSE WE DON'T HAVE STANDARDIZED INFORMATION ON CONTRACTS IN OUR SYSTEM.

BCIT, BURKE COUNTY INFORMATION TECHNOLOGY STAFF HAS BEEN WORKING FOR YEARS TO WRITE THE PROGRAMMING.

THE PROGRAMMING COMES OUT THE FINANCIAL MANAGEMENT MODULE THAT THE AUDITOR HAS OUT OF OUR ENFORCED SYSTEM AND IT GOES INTO OUR BTG SYSTEM, BUT IT CAN'T FIND THE PAYMENTS TO MATCH TO THE CONTRACT OR A PURCHASE ORDERS.

BECAUSE THE PURCHASE ORDERS AS CREATED IN PURCHASING, BECAUSE THAT'S WHO CREATES THE CONTRACTS MODULE DOESN'T HAVE ALL THE FIELDS AND STANDARDIZED LANGUAGE.

WE HAVE TO HAVE STANDARDIZED LANGUAGE, WHICH GRIFFIN & STRONG RECOMMENDED, AND THE COURT ADOPTED IN DECEMBER 2021.

FOR THE LAST 14 MONTHS, WE STILL ARE NOT DOING DATA COLLECTION.

THAT'S IN THE RACE-NEUTRAL, RACE-NEUTRAL ASPECT, DAVID MENTIONED A LITTLE BIT EARLIER IF THAT PROGRAM IS ADOPTED, GRIFFIN AND STRONG HAS A EXPIRATION DATE, WHICH IS DECEMBER 31, 2026 WHEN THE GOALS PROGRAM WOULD EXPIRE, IS IN THIS DRAFT POLICY IN OUR SECTION 3, THE LAST SENTENCE.

THE DATA IS GOOD FOR THAT AMOUNT OF TIME, THAT'S WHY THE STALENESS OF THE DATA COMES IN FIVE YEARS BECAUSE THERE IS AN OVERLAPPING OF DATA.

WHEN YOU LOOK AT LARRY AND THE COURTS, THESE OFFICE CAN LOOK AT WHAT YOU'VE BEEN TOLD ABOUT THE STALENESS.

THE FIVE YEARS IS ENOUGH TIME, SO IF WE DO THREE YEARS OF A PROGRAM, YOU HAVE TWO YEARS TO DO A DISPARITY STUDY BEFORE THE POLICY EXPIRES.

IT HAS TO BE REVIEWED A SUNSET BECAUSE THE NEW DATA SET WILL SHOW THERE'S NO MORE EVIDENCE OF DISCRIMINATION.

THE REMEDY OF RACE-CONSCIOUS IS NO LONGER REQUIRED IN YOUR CONTRACT AND PROCEDURES.

THAT'S WHY THE DATE THAT THIS WHOLE CONVERSATION ABOUT STALENESS OF DATA IS CRITICALLY IMPORTANT.

GRIFFIN AND STRONG OUTLINES IN THEIR POLICY, A DATE DECEMBER 31, 2026, SO WE'RE ASKING FOR 2023.

I DON'T KNOW IF WE CAN MAKE THIS HAPPEN IN TWO MONTHS FOR RACE-CONSCIOUS PROGRAM BECAUSE IT WOULD HAVE TO BE EFFECTIVE OCTOBER 1, FISCAL YEAR 2023.

WE WOULD GO FORWARD THREE YEARS, MAYBE NEXT YEAR, THE YEAR AFTER YOU WOULD DO A NEW STUDY BUT WE DON'T HAVE THREE YEARS WORTH OF DATA.

THE DATA THAT WE HAVE NOW IS NO DIFFERENT THAN WE HAD FIVE YEARS AGO BECAUSE WE'RE NOT DOING MANDATORY DATA COLLECTION, AND IT'S GOING TO CAUSE AN ISSUE, AND THAT'S WHY WE'RE ASKING, WE'RE MAKING RECOMMENDATIONS.

IN THE POLICY FOR PURCHASING, IT SAYS A VENDOR MAY BE DECLARED NON-RESPONSIVE, IF THEY DON'T TELL US WHO THEY ARE USING OR FOLLOW THE DATA PROCESS.

WE WANT THAT WORD TO BE CONTAINS TO SHELBY THE SKIER NON-RESPONSIVE BECAUSE THAT'S THE ONLY POWER WE HAVE FOR MANDATORY DATA COLLECTION, AND WE'LL TALK ABOUT THAT A LITTLE BIT.

>> RENE, CAN I INTERRUPT YOU REAL QUICK? THIS MAY BE SOMETHING YOU DON'T HAVE AN ANSWER TO NOW BUT I HAD ASKED OUR DA WHEN I RAN THEM RECENTLY ABOUT THE PREEMPTION BILL THAT WAS PASSED IN THE LEGISLATURE 21, 27.

SO DO WE KNOW YET WHETHER OR NOT THAT IS GOING TO HAMSTRING US IN IMPLEMENTING SOME OF THESE POLICIES, THAT'S THE BILL THAT BASICALLY SAYS, LOOK IF YOU HAVE A LOCAL ORDINANCE OR POLICY THAT IS INCONSISTENT WITH STATE LAW, THEY CAN NULLIFY IT.

DO WE KNOW YET WHAT THE IMPLICATIONS ARE OF 21, 27 ON A POLICY LIKE THIS WOULD BE?

>> YES. I'VE BEEN TRACKING THAT BECAUSE ONE OF THE BENCHMARKS WE HAVE IS TRAVIS COUNTY.

[01:30:04]

WE HAVE A WORKING GROUP OF HUB AND MWBE OFFICERS IN THE FOUR TEXAS COUNTIES, THERE ARE ONLY FOUR TEXAS COUNTIES AT A 254 COUNTIES IN THE STATE OF TEXAS THAT EVEN HAVE MWBE OR HUB PROGRAM.

PART OF THE LEGISLATION WE MAY BE COMING BACK TO SAY THE COURT MOVED FROM A SWAMI PROGRAM TO A HUB PROGRAM BECAUSE THE TEXAS ADMINISTRATIVE CODE CLEARLY OUTLINES THE HUB AND STATE STATUTES.

ABANDONED FUTURE NO PUT THE VETERANS AS PART OF THE HUB.

WE CAN MAINTAIN THAT PROGRAM, THE PROP, AND WE WILL CONTINUE OUR RACE-NEUTRAL PROGRAM FOR THE DISABLED, LGBT, AND ALL THE OTHER CATEGORIES THAT WE TRACKED.

SO YES, WE ARE WAITING TO SEE BECAUSE THE BILL FOR EDUCATION PASSED BUT THEY DIDN'T TALK ABOUT AFFIRMATIVE ACTION BECAUSE I THINK THE GOVERNMENT IS WAITING ON THIS CASE THAT THE DA IS TALKING ABOUT WITH HARVARD BECAUSE EDUCATION WILL THERE BE A CREEP TO AFFIRMATIVE ACTION BY THE SUPREME COURT.

IF THE SUPREME COURT SAYS, YES, WE WANT A LIMITED EDUCATION BUT WE WANT TO LOOK AT GOVERNMENT CONTRACTING, THERE'S QUITE A FEW FOLKS IN THE DEFENSE INDUSTRY IS ALSO TALKING ABOUT THAT.

SO WE HAVE A WORKING GROUP, AND WE'RE READY.

WE COULD GO WITH A HUB PROGRAM BECAUSE IT'S PRETTY MUCH THE SAME THING.

>> I JUST WANTED TO MAKE SURE THAT YOU'RE TRACKING THAT OR SOMEONE'S TRACKING THAT BECAUSE I'D HATE TO SEE ALL THIS WORK DONE, AND THEN THAT BILL COMES INTO PLAY AND ESSENTIALLY STRIKES IT.

I THINK THAT'S IMPORTANT.

WE'RE TRACKING BECAUSE IT'S BRAND NEW, AND I KNOW PEOPLE THAT WORK IN AUSTIN THAT ARE STILL ANALYZING THAT BILL IN TERMS OF WHAT IT MEANS FOR NOT THIS KIND OF POLICY BUT HOME RULE ACROSS THE BOARD.

KEEP US POSTED ON THAT, RENE. THANK YOU.

>> I WILL AND THEN WE WILL CONTINUE THE AGGRESSIVE OUTREACH COMPLIANCE AND MONITORING, AND THEN OUR DIRECTORY.

WE HAVE QUITE A BIT OF INFORMATION ABOUT THE SHALL, AND I HAD ASKED BEFORE WE MOVE, AND I HAD IT AS JASON BURGOS, WHO'S OUR DATA AND CONTRACTS MANAGER.

HE HAD SPENT 15 YEARS IN THE BURKE COUNTY PERSON DEPARTMENT.

HE'S BEEN WITH US ALMOST 14 MONTHS TO REALLY TALK ABOUT THE ISSUES, AND THE CHALLENGES WE HAVE WITH DATA COLLECTION, IF WE CONTINUE TO GO DOWN THE ROAD OF NON-MANDATORY.

WE WOULD LIKE TO HAVE AT THE NEXT MEETING AND ALL OF THIS THAT WE'D BE ABLE TO MOVE TO THAT ASPECT.

BUT WE ARE VERY CAUTIOUS COMMISSIONER, WHEN WE'VE TALKED ABOUT TRAVIS COUNTY BECAUSE WE DO BETTER THAN TRAVIS COUNTY.

WE TRACK THEIR NUMBERS, SO JUST TO GIVE YOU AN EXAMPLE, IN FY21 BOTH OF OUR ENTITIES SPENT $35 MILLION WITH SMALL BUSINESS OR WITH HUBS.

WE SPEND IT AT PRIME LEVEL, THEY SPEND IT WITH PRIMES AND SUBS.

WE SPENT $214 MILLION, THEY SPENT $167 MILLION.

SO WHEN WE LOOK AT DATA COLLECTION, IF WE HAD SUB DATA, WE KNOW OUR COUNTY WOULD BE DOING MUCH BETTER, WHICH IS WHAT GRIFFIN AND STRONG TOLD US ABOUT OUR COMPLIANCE EFFORTS. JASON.

>> GOOD MORNING.

>> GOOD MORNING, JUDGE AND COMMISSIONERS.

JASON BURGOS, DATE AND CONTRACT COMPLIANCE MANAGER WITH THE SMALL BUSINESS AND ENTREPRENEURSHIP DEPARTMENT.

GOT SOME SLIDES TO GO THROUGH.

I'M GOING TO TALK ABOUT DATA AND THE COLLECTION OF IT AND THE REPORTING.

MY COMMENT TO SOME OF THE DISCUSSIONS THAT HAVE BEEN GOING ON THIS MORNING, IS THAT THIS NEEDS TO BE A PARTNERSHIP AMONGST DEPARTMENTS AND OFFICES, FOLLOWING THE DIRECTION OF COMMISSIONERS COURT TO MAKE THIS HAPPEN.

SO ECHOING WHAT RENE SAID REGARDING THE MAY VERSUS SHALL, TO ACCOMPLISH PROPER DATA REPORTING, WE NEED AFFIDAVITS FROM OUR PRIME BIDDERS.

THAT INCLUDE ALL OF THESE SUB-CONTRACTORS AND SUB-SUPPLIERS TO BE PROVIDED IN THEIR BIDS.

WE WANT THOSE SUB-CONTRACTORS, SUB-SUPPLIERS, AND SUB-CONSULTANTS TO REGISTER WITH OUR ENFORCE SUPPLIER PORTAL.

WE WANT THOSE AFFIDAVITS TO BE IN CONJUNCTION OR WORKING WITH BCIT TO BE DIGITAL, SO RIGHT NOW IT'S A PAPER FORMAT.

WE WANT TO MOVE THAT TO A DIGITAL, SO THAT DATA CAN BE EXTRACTED AND PUT TOGETHER IN A REPORT.

DOCUMENTING THOSE RESPONSES.

WE WANT EACH PROPOSAL RESPONSE TO AN INFORMAL QUOTE, IFB, RFP, SOQ, WHICH IS A STATEMENT OF QUALIFICATIONS OR REQUEST FOR QUALIFICATIONS.

WE WANT THOSE VENDORS REGISTERED.

WE WANT THEIR STATUS AND VENDOR NUMBER THAT TO BE DOCUMENTED.

WE WANT TO CERTIFICATION IN THE SYSTEM AS WELL, PART OF THAT, MANDATORY DATA COLLECTION.

ANY COMMODITY CODES THAT APPLY TO THEM OR THE INDUSTRY THAT THEY'RE IN, AS WELL AS PUT INTO THE SYSTEM AS FAR AS INFOR GOES OUR SUPPLIER PORTAL.

SO THAT THAT INTERFACE THAT GOES WITH OUR CDMS SYSTEM WHERE WE DO CONTRACT MONITORING AND COMPLIANCE.

[01:35:02]

ON THE RECORD OF SOLICITATION, IT'S REPETITIVE.

THIS HAS ALL BEEN APPROVED, 8.0 POLICY BY THE COMMISSIONERS COURT.

WE WANT PROCURING ENTITIES, THAT'LL BE DEPARTMENT'S OFFICES, PURCHASING DEPARTMENT BASICALLY BEXAR COUNTY TO MAINTAIN AN ELECTRONIC RECORD.

THAT RECORD CAN BE KEPT IN INFOR, CAN BE KEPT IN OUR CDMS SYSTEM.

THEY CAN DO AN EXCEL SPREADSHEET.

WE DO HAVE SOME RECOMMENDATIONS FURTHER DOWN TO UTILIZE OUR CDMS PRIMARILY FOR INFORMAL SOLICITATIONS.

I WANT TO BRING THAT UP RIGHT NOW.

THE DEPARTMENT SHALL MAINTAIN A DATABASE RECORD FOR EACH QUOTE OR BASICALLY THAT SOLICITATION THAT GOES OUT TO KEEP RECORD OF THAT IN ONE OF THOSE SYSTEMS THAT WERE MENTIONED BEFORE.

ANY REVISIONS OR AMENDMENTS NEED TO STAY WITHIN THAT SYSTEM SO THAT WE CAN TRACK THOSE CHANGES.

REGARDING CONTRACT AWARD, WE WANT EACH PROCURING ENTITY TO MAINTAIN AN ELECTRONIC RECORD.

AGAIN, GOING BACK TO CDMS, EXCEL OR INFOR.

FOR EACH CONTRACT AWARDED, WE WANT THE DOCUMENT NUMBER THAT RESULTED IN THE CONTRACT, SO I.E THE CONTRACT NUMBER, PURCHASE ORDER NUMBER THAT APPLIES TO THAT AWARD, WHAT TYPE OF COMPETITION IT WAS, WHETHER IT WAS INFORMAL, IFB, CO-OP WAS USED, SOLE SOURCE OR EMERGENCY.

DISCUSSING DATA ENTRY FOR OUR SUPPLIERS THAT REGISTER.

WE WANT ALL PRIMES AND ALL SUBS IN THE SYSTEM.

SO REITERATING WHAT I SAID EARLIER, WHETHER THOSE SOLICITATIONS HAPPENED IN INFOR.

WE ALSO AS A COUNTY USE CIVCASTUSA FOR SOME OF OUR PUBLIC WORKS PROJECTS OR OUR ROAD PROJECTS.

WE'D LIKE THOSE VENDORS THAT ARE SUBMITTING BIDS AND/OR RESPONDING TO THOSE SOLICITATIONS TO REGISTER IN OUR INFOR SYSTEM.

REGARDING OUTREACH, WE WANT THOSE POSTINGS TO HAPPEN IN INFOR, THE DEPARTMENT WEBSITES CIVCASTUSA.

WE WOULD WANT TO CAPTURE ALL OF THOSE SOLICITATIONS SO THAT WE CAN REPOST AS WELL IN OUR SYSTEM, THE CDMS SYSTEM, PROFESSIONAL SERVICES, WE WANT PRE-QUALIFICATION, THE ROTATION USED AND FOR DEPARTMENTS AND OFFICES TO USE OUR INFOR AND CDMS DIRECTORY SO THAT WE CAN IDENTIFY ANY OPPORTUNITIES FOR SMALL MINORITY WOMEN-OWNED BUSINESSES.

AGAIN, WE WANT TO BE NOTIFIED OF THOSE FORMAL POSTINGS AND MEETINGS.

TO HIGHLIGHT THE PRIME, WE WANT OUR PRIME VENDORS TO BE RESPONSIBLE FOR ENTERING PAYMENTS AND UPLOADING DOCUMENTS INTO OUR CONTRACT IN DIVERSITY MANAGEMENT SYSTEM.

THOSE DOCUMENTS WOULD RE-REGARDING ANY SUBCONTRACTOR TO SUB-SUPPLIERS AND SUB-CONSULTANTS, PAYMENTS THAT ARE MADE TO THEM SO THAT WE CAN TRACK ALL OF THAT.

TALKING ABOUT CDMS, WEB-BASED PAPERLESS SYSTEM.

WE WANT THEM, THEY SHALL USE IT TO REPORT THEIR SUB-PAYMENTS OUR PRIMES TO SWBE, WE WILL MONITOR THOSE PAYMENTS THAT ARE RECEIVED.

I HAVE A TEAM OF FOUR THAT IT'S CONTRACT COMPLIANCE TEAM THAT MONITOR THOSE PAYMENTS.

WE'LL ALSO PROVIDE EDUCATION AND TRAINING REGARDING REPORTING ANY PROJECTS OR UTILIZING THE OUTREACH CAMPAIGN FEATURE OF CDMS, WHICH IS FOR INFORMAL SOLICITATIONS.

>> AM I TO ASSUME WE'RE NOT PAPERLESS?

>> I'M SORRY, JUDGE?

>> AM I TO ASSUME THAT OUR PROCUREMENT SYSTEM IS NOT PAPERLESS?

>> NO, SIR.

>> SO WE'RE DOING THE THINGS THAT WE DID 30-40 YEARS AGO?

>> REGARDING INFORMALS, YES.

>> BEFORE THE COMPUTER AND THE INTERNET GOT CONNECTED. [OVERLAPPING]

>> YES. WE JUST ADDED THE COMPUTER AND HELP OUT WITH OUR INFORMALS, BUT THERE'S STILL A PROCESS OF IT BEING EMAIL, SOMETIMES IT'S A PHONE CALL.

WE WANT TO STANDARDIZE THAT TO USE A SYSTEM.

>> THAT WOULD BE GOOD.

>> THANK YOU, JUDGE. INFORMAL QUOTES ARE RECOMMENDATION $5,001 TO 49,999 IS TO REQUIRE THREE QUOTES.

WE WANT THE INFOR AND CDMS SYSTEM TO BE CHECKED FOR THE VENDORS.

WE WANT THE SUPPLIER PORTAL REGISTRATION TO BE REQUIRED.

THEY HAVE TO REGISTER WITH US.

IF THERE'S A CONTRACT TO USE THAT CONTRACT, WE ALSO, AS I SAID EARLIER, TO STOP USING PAPER, WE WANT TO DOCUMENT ALL THOSE EFFORTS IN OUR CONTRACT AND DIVERSITY MANAGEMENT SYSTEM.

>> THANK YOU.

>> REGARDING RACE AND GENDER CONSCIOUS FORMAL SOLICITATION PROCEDURES, OVER 50,000, WE WANT TO HAVE THE REQUISITION AND SCOPE OF WORK CREATED.

SHOULD I CONTINUE, JUDGE?

>> IT'S YOUR PRESENTATION. [LAUGHTER] I AM LISTENING.

>> OKAY. WE'LL DISCUSS THE DELIVERY METHODS, DISCUSSION TO BE EVOLVED.

WE WANT OUR DEPARTMENT TO BE INVOLVED REGARDING THE SOLICITATION AND TO SET THOSE GOALS.

WE WILL PURCHASE A MODULE WITHIN THE CONTRACT AND DIVERSITY MANAGEMENT SYSTEM TO ASSIST US WITH SETTING THOSE GOALS.

[01:40:01]

WE WANT TO BE INVOLVED IN THE PRE-PROPOSAL OR PRE-BID CONFERENCE, WHICH WE ALREADY ARE, EXCEPT NOW WE'LL BE DISCUSSING ACTUAL GOALS, ANSWER ANY QUESTIONS AND THEN RECEIVE THOSE BIDS AND PROPOSALS.

FOR FORMAL SOLICITATIONS OVER 50,000.

AGAIN, RACE AND GENDER CONSCIOUS.

THERE'LL BE A BID TABULATION, PROPOSAL EVALUATION.

AGAIN, HAVE THOSE VENDORS REGISTERED IF THERE'S A NEGOTIATION, IF IT'S AN RFP, THAT NEGOTIATION CAN HAPPEN, DETERMINE THE AWARD, AND THEN OF COURSE, IT WOULD BE BROUGHT TO COMMISSIONERS COURT FOR AWARD, ADMINISTRATE THAT CONTRACT BY PURCHASING, AND WE WILL DO THE COMPLIANCE AND MONITORING.

UTILIZING THE TIMELINE SET BY PURCHASING IN THE CURRENT PURCHASING POLICIES AND PROCEDURES, WE ESTIMATE THAT OUR INCLUSION IN THE PROCESS WOULD ADD APPROXIMATELY SEVEN DAYS.

>> JASON, ONE THING THAT DOES NOT CONTEMPLATE THOUGH, IS AN EVALUATION FOR DEEP BIDDING OPPORTUNITIES.

>> FOR DEBUND?

>> DEBUNDLING.

>> DEBUNDLING.

>> DEBUNDLING OR UNBUNDLING WOULD BE AT THE FRONT PART OF THE PROCESS WHEN WE DETERMINING THE SCOPES OF WORK.

BECAUSE IN THE RACE-CONSCIOUS PROGRAM, IT'S ONLY APPLY TO CERTAIN SCOPES OF WORK.

WITH THE INTERNAL COMMITTEE AND THE WORK GROUP, WE WILL HAVE OBVIOUSLY THE DEPARTMENT SITTING DOWN AT THE TABLE TO DO THAT FORECAST.

SO WE WILL BE ABLE TO LOOK AT, IS THIS PROJECT, A GOOD PROJECT FOR UNBUNDLING? WHAT ARE THOSE SCOPES OF WORK AND SHOULD WE SEPARATE HAVE SEPARATED PURCHASES? THAT WOULD REQUIRE, BUT THAT'S AT THE BEGINNING OF THE PROJECT.

WE TOOK THIS PROJECT OUT.

WHAT YOU SEE IN YOUR PROPOSAL GOING BACK TO WHAT DAVID SAID EARLIER, THE PURCHASE AGENT NOW, IN THIS PROPOSAL IS ASKING FOR 106 DAYS.

WE DO NOT SUPPORT THAT.

WE SAID WE DON'T KNOW IF THE CURRENT PROCESS WORKS AND WE'RE NOT EVEN INVOLVED IN IT.

SO WE ONLY ASK ANY RECOMMENDING ANOTHER SEVEN DAYS FOR THE 77 DAYS THAT'S IN THE CURRENT POLICIES AND PROCEDURES.

>> IF IT'S A NEGOTIATED SOLICITATION, WE ESTIMATE THAT WOULD ADD AN ADDITIONAL SEVEN DAYS OF WORK AS WELL, SO IT WOULD GO FROM THE CURRENT POLICY OF 160 DAYS TO 167 DAYS.

I THINK THE RECOMMENDED POLICY CHANGES STATE THAT IT'S AT ABOUT 195 DAYS.

>> GIVE OR TAKE.

>> COOPERATIVE PURCHASING HAS BEEN A HOT TOPIC.

I'M VERY FAMILIAR WITH COOPERATIVE PURCHASING IN MY 15 YEARS WITH PURCHASE.

WHEN I WAS IN THE PURCHASING DEPARTMENT, THOSE SEVERAL DISCUSSIONS HELD.

WE RECOMMEND AS A DEPARTMENT THAT ONE, WE DOCUMENT THAT PROCESS IN OF COURSE, ONE OF THOSE ELECTRONIC SYSTEMS THAT I MENTIONED EARLIER.

IF YOU'RE GOING TO REACH OUT TO A COOPERATIVE THAT YOU REACH OUT TO AT LEAST THREE.

IF IT'S A CONSTRUCTION RELATED GOOD OR SERVICES OVER $50,000, THAT WE DO NOT USE A COOP.

GOING BACK TO THAT NEXT LINE, AND I JUST SAID IT EARLIER IS TO REQUIRE AT LEAST THREE OFFERS FROM COOPERATIVE VENDORS, OR VENDORS THAT HOLD A COOPERATIVE CONTRACT, AND THAT WE PRIORITIZE OUR MARKETPLACE OF BEXAR COUNTY.

UNLESS CERTIFIED IN WRITING THAT THERE'S NO PLANS AND SPECIFICATIONS NEEDED, OR THE PLANS AND SPECIFICATIONS HAVE BEEN PREPARED, IF THAT CERTIFICATION HAPPENS, WE CAN MOVE FORWARD WITH THAT COOPERATIVE PROCUREMENT. I THINK I'M AT THE END.

>> THANK YOU.

>> THANK YOU.

>> HELLO.

>> JUDGE AND COMMISSIONERS, THAT CONCLUDES OUR PROPOSED PRESENTATION.

WE'VE LAID THE ISSUES THAT THE COURT WILL BE WANTING TO GET YOUR FEEDBACK ON, SOME OF IT YOU'VE ALREADY GIVEN.

AS STAFF MOVE FORWARD WITH THE ASSUMPTION, PERHAPS INACCURATE, THAT WE WILL BE IN A POSITION TO IMPLEMENT A RACE-CONSCIOUS SUBCONTRACT AND PROGRAM DEPENDING ON THE RESULTS THAT COME OUT OF THE SUPREME COURT.

WE WILL COME TO YOU, OF COURSE, BEFORE WE ARE PREPARED TO IMPLEMENT THAT WITH ANY POLICY CHANGES THAT ARE REQUIRED, ADOPTION OF SOME OF THE LANGUAGE YOU JUST HEARD FROM OUR SMALL BUSINESS ENTERPRISE DEPARTMENT THAT WE NEED CHANGED, AND SOME OF THE OTHER PROCUREMENT CONSIDERATIONS. THANK YOU.

>> ANY COMMENTS? COMMISSIONER CLAY-FLORES.

>> YEAH. I DIDN'T REALIZE THE PRESENTATION WAS GOING TO TAKE AS LONG AS IT DID, SO I HAD MENTIONED THAT I WANTED LARRY TO COMMENT.

I SHOULD HAVE ASKED YOU TO GO UP EARLIER, LARRY, I DIDN'T REALIZE IT WILL TAKE SO LONG.

IF YOU COULD JUST COMMENT ON SOME OF THE RECOMMENDATIONS, AND I KNOW YOU AND I HAD PREVIOUSLY TALKED ABOUT SOME THINGS AND I JUST WANTED YOU TO PUBLICLY TALK ABOUT YOUR OPINIONS.

>> WELL, COMMISSIONER, THANK YOU, I REALLY APPRECIATE THAT.

ONE THING I WILL SAY IS THE COMMENTS THAT I WOULD MAKE I THINK WOULD PROBABLY BE BETTER SUITED FOR

[01:45:02]

IT MAY BE JUST THE LANGUAGE IN THE POLICY.

I WENT THROUGH THE POLICY, IT COULD BE JUST, IT NEEDS TO BE CLARIFIED, BUT I THINK THERE ARE SOME LEGAL ISSUES THAT I'VE IDENTIFIED THAT I WOULD PREFER HAVING A CONVERSATION WITH THE COURT TO GET THEIR DIRECTION IN EXECUTIVE.

THAT'S THE DISCUSSION THAT'S ATTORNEY-CLIENT PROTECTED WITH THE COURT CONSENT, SO IT'S UP TO THE COURT.

>> YEAH, THAT'S FINE.

>> YEAH. I DON'T KNOW WHEN THE COURT WOULD LIKE TO DO THAT, I THINK SOONER RATHER THAN LATER.

>> CORRECT.

>> MINE ARE GOING TO BE MORE TECHNICAL ISSUES BASED ON LEGAL ISSUES THAT I IDENTIFIED IN THE CURRENT DRAFT.

I HAVE NOT TALKED TO PATRICIA ABOUT IT, SO IT'S NOT FAIR TO ME TO COMMENT ON.

>> OKAY

>> OKAY.

>> [OVERLAPPING] COMMISSIONER CALVERT.

>> THANK YOU, JUDGE. THE ONLY OTHER THING I WOULD SAY ABOUT THIS PRESENTATION TODAY IS IF THERE WERE A NUMBER OF SUPPOSITIONS, ASSUMPTIONS, AND THINGS THAT WERE SAID ABOUT THE PURCHASING AGENT THIS, THE PURCHASING AGENT THAT, AND WE ACTED LIKE THE PURCHASING AGENT WASN'T IN THE ROOM.

[LAUGHTER] THE ONE TIME THAT SHE DID COME UP SHE SAID THAT ISN'T TRUE.

IF WE NEEDED TO CLARIFY THE LANGUAGE SO THAT IT WAS CLEARER THAT THE COMMISSIONERS COULD STILL HAVE THE POWER TO OVERSEE THESE THINGS.

I DON'T KNOW, STEVIE WONDER CAN SEE SOMETIMES WHEN THINGS ARE TRYING TO BE A HIP JOB AGAINST THE PURCHASING AGENT, BUT IN ANY EVENT, I JUST WANT TO EXTEND TO HER THE OPPORTUNITY TO CLARIFY ANYTHING THAT SHE FELT WERE NOT ACCURATE ABOUT THE RECOMMENDATIONS AND REVISIONS THAT WERE PRESENTED TODAY.

>> MS. TORRES, WOULD YOU LIKE TO HAVE THE FLOOR?

>> THANK YOU FOR THE OPPORTUNITY.

>> GOOD MORNING.

>> I DO HAVE COMMENTS ON EVERY SLIDE.

DID YOU WANT ME TO GO THROUGH, [LAUGHTER] OR JUST THE MAJOR ONES?

>> THIS IS YOUR PRESENTATION. GO AHEAD.

>> THE PURCHASING MANUAL OVERALL GIVES NO MAJOR CHANGES ASIDE FROM INSERTING DRAFT OPPORTUNITY FOR THE COURT AND ALLOW YOU TO REVIEW CONVERSATIONS THAT WE HAVE HAD THROUGHOUT THE YEARS.

OF COURSE, THE DRAFT WE COULD REMOVE, EDIT, REVISE AS NEEDED. ONE SECOND.

>> CAN MAKE REFERENCE TO WHAT SLIDE YOU WERE TALKING ABOUT?

>> NO, IN GENERAL.

>> OH IN GENERAL.

>> JUST THE WHOLE PURCHASING MANUAL. IT'S A DRAFT.

>> ARE YOU IN AGREEMENT WITH WHAT'S BEEN PROPOSED AND PRESENTED TODAY BY THE COUNTY MANAGER?

>> I'M IN DISAGREEANCE.

>> OR DO YOU HAVE SOME CONCERNS, OBJECTIONS, OR ISSUES? I THINK IN LIGHT OF WHAT MR. ROBERT IS SAYING, PERHAPS THAT'S SOMETHING INTERNAL THAT NEEDS TO BE DONE.

>> ABSOLUTELY. YES. WITH THAT, I'LL JUST SUM IT UP AS I DISAGREE AND I WOULD LOVE TO TALK TO LARRY ABOUT ANY LEGAL CONCERNS OR THE CLARIFICATION NEEDED ON THE DRAFT PURCHASING MANUAL, AND I'LL BE HAPPY TO MAKE THOSE CHANGES.

>> THANK YOU, MS. TORRES.

>> JUDGE, PERHAPS YOU COULD SUBMIT TO US IN WRITING, PATRICIA, THOSE THINGS WHERE THEY'RE CLARIFICATION NEEDED. THANK YOU.

>> THANK YOU.

>> ANY FURTHER COMMENTS OR QUESTIONS FOR MS. TORRES? LET ME GO AHEAD AND WEIGH IN.

AS YOU ALL KNOW I'M THE NEW KID ON THE BLOCK SO TO SPEAK.

MR. ROBINSON, AS THE ATTORNEY I TOTALLY AGREE THAT THEY'RE PROBABLY SOME LEGAL ISSUES THAT WE NEED TO DISCUSS, AND THOSE ARE BEST DISCUSSED AND, OR REQUIRED TO BE DISCUSSED IN EXECUTIVE SESSION.

ONE OF THE THINGS I'VE POINTED OUT IN PREVIOUS MEETINGS IS THAT THE CURRENT CASES BEFORE THE UNITED STATES SUPREME COURT THAT ARE DEALING WITH A ISSUE, I THINK IT'S THE HARVARD CASE AND OTHER ISSUES.

OPINIONS CAN BE NARROWLY GIVEN WHICH MIGHT NOT, OR MAY AFFECT THIS, OR IT COULD BE A VERY BROAD IMPLICATIONS THAT MAY COME INTO PLAY FOR TODAY'S CONVERSATION.

THAT'S THE REASON WHY I JUST WANT TO GET EVERYBODY TO UNDERSTAND WE'RE NOT HIDING ANYTHING, BUT IT'S JUST THAT WE'RE GOING TO NEED LEGAL ADVICE AS WE MOVE

[01:50:02]

>> ACCURATELY STATED, JUDGE.

>> OKAY. MR. SMITH OR YOU CAN BE AT THE TABLE THERE.

THIS HAS BEEN A VERY THOROUGH I THINK.

I'M NOT BEEN HERE LONG ENOUGH TO KNOW WHAT THOROUGH IS, BUT WE HAVE REALLY HAD A GOOD DISCUSSION OF WHAT THE COUNTY NEEDS TO DO TO PICK AN ESSENCE PICK UP ITS GAME.

AS WE KNOW, THERE'S A LOT OF MULTISYSTEM IN VARIOUS DEPARTMENTS.

IT APPEARS TO ME THAT THEIR PERHAPS AT ITS BEST THERE'S A DISCONNECT.

AT ITS WORST, THERE'S PEOPLE THAT DON'T WANT THIS PROCESS TO MOVE FORWARD.

SO MY QUESTION TO YOU AS COUNTY MANAGER AND I THINK IT'S WELL WITHIN YOUR AUTHORITY AND POWER AS COUNTY MANAGER.

I'D LIKE TO KNOW HOW WE'RE GOING TO MOVE FORWARD BECAUSE AT THIS POINT, THIS IS SOMETHING I BELIEVE THAT THE COUNTY MANAGER, DEPARTMENT HEADS, AND ELECTED OFFICIALS THAT MAY BE AFFECTED BY THESE POLICIES NEED TO SIT DOWN IN A ROOM AND START WORKING IT OUT.

ESPECIALLY AS I SEE, PROCESS IS CROSS MULTI-DEPARTMENTS AND MULTI-ELECTED OFFICIALS.

MAY I SUGGEST OR IF YOU'VE GOT SOME THOUGHT ABOUT IT, I BELIEVE THAT YOU SHOULD BE IN THE ROOM AS COUNTY MANAGER.

I BELIEVE THE COUNTY AUDITOR SHOULD BE IN THE ROOM.

I BELIEVE THE COUNTY LAWYER SHOULD BE IN THE ROOM.

I BELIEVE THE PURCHASING AGENT SHOULD BE IN THE ROOM.

AM I MISSING ANYBODY?

>> RENEE WATSON.

>> RENEE WATSON. EXCUSE ME, RENEE THAT WAS NOT A SLIGHT BY ANY CHANCE.

I DIDN'T SEE YOU IN THE FIRST STROKE.

I DON'T WANT TO MAKE IT OVER COMMITTEE SO TO SPEAK.

BUT I WOULD TAKE THOSE FIVE PEOPLE NEED TO BE IN THE ROOM AND GIVE US A CONCISE REPORT SO THAT WE ON THE COURT CAN THEN MAKE WHAT WE HOPE IS THE BEST DECISIONS FOR THE TAXPAYERS IN BEXAR COUNTY.

WHAT'S YOUR THOUGHTS ON HOW WE MOVE FORWARD? BECAUSE YOU PUT A LOT OF WORK ON THE PROPOSED AMOUNT.

THIS IS YOUR PROPRIETARY.

>> YES, SIR.

>> BUT AS YOU HEARD, LOT OF DISCUSSIONS AND PERHAPS A LOT OF DIFFERENT OPINIONS.

HOW DO YOU SUGGEST WE MOVE FORWARD?

>> I WANT TO DO, I THINK WE NEED TO MOVE FORWARD ON A COUPLE OF DIFFERENT FRONTS.

AS YOU HEARD, WE CAN'T HAVE AN ACCURATE DEPICTION OF OUR CURRENT PURCHASING DIVERSITY IF WE'RE NOT COLLECTING THE RIGHT DATA.

WE NEED TO HAVE THAT DISCUSSION.

IF NECESSARY, WE NEED TO HAVE A POLICY CHANGES AS RENEE AND JASON OUTLINED TO MAKE IT MANDATORY.

TO BE HONEST, I TRIED TO DO THAT FOR DEPARTMENTS THAT REPORT TO ME, BUT IT THEN NOT PATRICIA, THE THEN PURCHASING AGENT OVERRULED ME AND TOLD THEM THEY DIDN'T NEED TO DO IT.

I THINK WE NEED THE POLICY CHANGES FROM COURT AND WE WILL NEED THE COOPERATION OF THE DEPARTMENTS, LIKE THE AUDITOR AND INPUTTING USER DEPARTMENT, AND PURCHASING TO MAKE SURE AS WE COLLECT DATA IN THESE DIFFERENT SYSTEMS THAT THEY CAN CROSS-TALK TO EACH OTHER BECAUSE THAT'S WHAT'S HAPPENING NOW.

WE'VE GOT A CHECK. WE KNOW THE CHECK WAS CUT.

BUT IF WE DON'T HAVE THE RIGHT PO NUMBER OR CONTRACT NUMBER, WE DON'T KNOW TO WHOM THAT CHECK GETS ASSIGNED, SO WE CAN FIX THAT.

THAT'S JUST A STAFF COORDINATION ISSUE I BELIEVE THAT REQUIRES YOUR POLICY, WE'LL BRING IT TO YOU.

THEN AS I SUGGESTED, I'D LIKE FIRST OUR STAFF AND YOUR STAFF TO MOVE FORWARD TO PUT YOU IN A POSITION TO IMPLEMENT A RACE-CONSCIOUS, SUBCONSCIOUS CONTRACTING PROGRAM.

IF IT'S LEGALLY APPROPRIATE AND THE COURT APPROVES THAT, WE WANT TO BE AS READY TO GO AS POSSIBLE.

IT'LL TAKE THE COORDINATION OF AT LEAST THOSE OFFICES AND DEPARTMENTS.

FINALLY, HOPEFULLY, SOME OF THE INPUT YOU'VE GIVEN TODAY ON THE DRAFT NEW PURCHASING POLICY IS INCORPORATED IN A REVISED DRAFT.

THE NEXT STEP AFTER LEGAL REVIEW IS VIA THE COUNTY'S POLICY ON POLICIES, IS THAT IT GOES OUT FOR REVIEW BY ALL OFFICES AND DEPARTMENTS BECAUSE FRANKLY, I DIDN'T COMMENT ON THE CHANGES OR THE PROCESS OF LITERALLY PROCURING SOMETHING, BECAUSE I DON'T DO THAT GENERALLY.

THAT' S OTHER PEOPLE AND ALL, AND THEY NEED TO LOOK AT AND SAY, "HEY, DOES THIS MAKE SENSE OR NOT?" WE NEED TO GET THEIR INPUT.

ALL OF THOSE THINGS, I BELIEVE CAN GO FORWARD SIMULTANEOUSLY.

>> SO WOULD YOU ACCEPT MY SUGGESTION OF THOSE FIVE PEOPLE, IF NOT MORE?

[01:55:03]

>> GOT IT.

>> THAT'S WHY WE PAY THE BIG BUCKS.

ALL RIGHT, IS THERE ANY OTHER QUESTIONS ON THIS ISSUE? I THINK WE'VE HAD A THOROUGH DISCUSSION.

CAN WE NOW MOVE ON? WE'RE NOW GOING TO DISCUSS A TAKE-UP PRESENTATION DISCUSSION REGARDING THE LONG-RANGE FINANCIAL FORECAST.

LRFF FOR THE GENERAL.

[BACKGROUND] OH, SORRY, I HAVE MISSED THIS.

WE'RE GOING TO TAKE-UP SUPPLY, ESSAY, PROCUREMENT PLAYBOOK.

>> I'LL JUST INTRODUCE IT.

I KNOW JUDGE, YOU HAVE HAD MEETINGS WITH SECRETARY CISNEROS AND OTHERS.

I KNOW NELSON WOLFF ATTENDED THE FIRST ONE WITH YOU WHILE HE WAS STILL HERE.

I'VE BEEN INVITED TO PARTICIPATE IN WHAT THEY'RE CALLING THE CEO GROUPS.

BUT BASICALLY, THIS IS AN EFFORT TO IMPROVE GLOBALLY HERE LOCALLY, OUR PUBLIC SECTOR DOLLARS SPEND WITH DIVERSE CONTRACTORS.

WE'VE BEEN INVITED TO PARTICIPATE.

>> MR. CISNEROS, STEP FORWARD.

>> JUDGE SAKAI, MEMBERS OF THE COURT, THANK YOU SO MUCH FOR GIVING US THE OPPORTUNITY TO PRESENT.

AS DAVID SAYS, "THE BROADER VISION OF HOW WE REFORM PROCUREMENT ACROSS THE MAJOR PUBLIC AGENCIES OF THIS REGION." WE HAVE BEEN WORKING WITH 14 DIFFERENT PUBLIC ENTITIES FOR THE BETTER PART OF THE LAST YEAR AND WANT TO CONTINUE, AND WHAT THE COUNTIES HELP.

I AM NOT GOING TO USE THE WORD ENJOY, BUT I FOLLOWED THE LAST HOUR OR SO CONVERSATION.

I MUST SAY, I COMPLIMENT YOU ON GETTING DOWN TO THE NITTY-GRITTY OF HOW THE PROCUREMENT PROCESS WORKS EVEN HERE WITHIN THE COUNTY.

THANK YOU FOR THE LEADERSHIP THAT PUTS THE COUNTY IN FRONT OF AN EFFORT TO TRY TO DO THIS ACROSS ALL THE AGENCIES OF OUR AREA.

WE START WITH THE CENTRAL CONCEPT THAT SMALL BUSINESS IS A SAFETY NET UNDER THE ECONOMY OF OUR REGION.

SMALL BUSINESS IS THE FOUNDATION IF YOU WILL, OF THE ECONOMY.

LARGE BUSINESSES COME AND GO.

WE SEE ANNOUNCEMENTS THAT THEY LAY OFF 500 PEOPLE ARE MOVED TO ANOTHER PLACE.

BUT WE REMEMBER THE BASE OF OUR ECONOMY AND IT SMALL BUSINESS.

A GOOD PART OF THAT SMALL BUSINESS CAN BE STRENGTHENED BY THE PROCUREMENT POLICIES OF THE MAJOR PUBLIC AGENCIES OF OUR AREA.

WE'VE BEEN WORKING ON THIS NOW FOR THE LAST YEAR.

RENEE FROM THE COUNTY HAS BEEN AN INTEGRAL PART, AS YOU'LL SEE IN A MOMENT FROM THE PRESENTATION.

I CAN DO THIS, I THINK IN ABOUT 10 MINUTES.

I WANT TO THANK IN PARTICULAR, THE SAN ANTONIO AREA FOUNDATION.

PATRICIA MEJIA IS HERE FROM THE AREA FOUNDATION THAT FUNDED THE DEVELOPMENT OF THE SO-CALLED PLAYBOOK AND THEN FUNDED THE ABILITY TO RETAIN AN ENTITY TO MANAGE THIS PROCESS OVER THE LAST YEAR.

THANKS TO THE AREA FOUNDATION.

IT'S THE PERFECT ROLE FOR AN AREA FOUNDATION TO WORK ON THINGS THAT INVOLVE THE PROSPERITY AND EQUITY WITHIN OUR COMMUNITY.

WE RETAINED TO THE GROUP CALLED OCI.

OCI REPRESENTED HERE TODAY BY OLIVIA TRAVIESO AND THEY ARE TREMENDOUS.

THIS IS A CLASSIC CASE OF INSTEAD OF BRINGING CONSULTANTS IN FROM THE OUTSIDE, WE FOUND TALENT RIGHT HERE WITHIN THE COMMUNITY, AND THEY'RE AS GOOD AS IT GETS.

I'VE HAD THE PRIVILEGE OF WORKING WITH THE LIKES OF MCKINSEY, BAIN, AND BOSTON CONSULTING.

RIGHT HERE IN SAN ANTONIO, WE HAVE A STRATEGIC PLANNING GROUP LIKE OCI.

THEY'D BEEN TREMENDOUS AND OLIVIA IN PARTICULAR.

I'M GOING TO ASK HER TO COME UP IN A MOMENT SO THAT SHE CAN HELP MOVE THE PRESENTATION FORWARD.

I ALSO WANT TO THANK SOMEONE WHO WAS HERE A MOMENT AGO BUT HAD TO LEAVE AND THAT IS JENNIFER BARRERA, WHO IS ICONIC IN OUR COMMUNITY AS AN ADVOCATE FOR SMALL BUSINESS.

SHE IS COMPLETELY ABOARD HERE.

IN FACT, SHE IS A MANAGING DIRECTOR OF THIS EFFORT.

A QUICK WORD JUST ON THE CREATION OF THIS EFFORT, I GOT A CALL FROM THE MAYOR AND THE COUNTY JUDGE, MAYOR RON NIRENBERG, AND THEN NELSON WOLFF, ASKING ME TO PLAY THE ROLE ON A VOLUNTEER BASIS THAT I DID WITH CONNECT THE ESSAY, WHICH IS TO PULL THE EFFORT TOGETHER.

I'M DOING THIS ON A VOLUNTEER BASIS.

WE HAD A SERIES OF CONVERGING FACTORS.

ASPEN INSTITUTE SELECTED SAN ANTONIO FOR AN EFFORT TO ACCELERATE SMALL BUSINESS INVESTMENTS.

THEY HAD THIS PLAYBOOK STRATEGY NATIONALLY.

[02:00:01]

THE SAN ANTONIO AREA FOUNDATION ITSELF WEIGHED IN.

A LOT OF THINGS CAME TOGETHER HERE, AND THE RESULT IS THE PRESENTATION I'M GOING TO WALK THROUGH.

IF YOU'LL GO BACK A COUPLE OF SLIDES THERE.

THE ISSUE IS STATE AND LOCAL STAKEHOLDERS CAN DO MORE TO DEVELOP SMALL BUSINESS SUPPLIERS IN THEIR REGION AND HELP THEM SUCCESSFULLY BID AND WIN PUBLIC CONTRACTS, WERE PRETTY FAR BEHIND IN SAN ANTONIO IN THIS SENSE, JUDGE.

THE 14TH PUBLIC ENTITIES THAT WE WORK WITH GENERATE ABOUT $9 BILLION A YEAR IN PURCHASING.

ABOUT 15% OF THAT GOES TO LOCAL SMALL BUSINESSES AND MINORITY BUSINESSES.

THE POTENTIAL IS MASSIVE TO PUT A STRONGER FLOOR UNDER THE AREA ECONOMY, THAT HAS EQUITY DIMENSIONS, INTERGENERATIONAL DIMENSIONS, PERMANENT OWNERSHIP, FUNDAMENTAL CHANGE IN OUR ECONOMY, AND WE CAN DO A BETTER JOB.

NEXT SLIDE, PLEASE. THIS IS ALL THE GROUPS THAT COLLABORATED TOGETHER TO DO THE PLAYBOOK AND GET THIS STARTED, YOU'LL NOTE THE SAN ANTONIO AREA FOUNDATION AND THE ASPEN INSTITUTE, ETC.

NEXT SLIDE. THESE ARE THE 14 AGENCIES, I'M GOING TO RUN THROUGH THEM VERY QUICKLY BECAUSE IT'S NEVER BEEN DONE BEFORE.

WHEN WE ADD THESE 14 CEOS IN THE ROOM TOGETHER.

JUDGE, YOU REMEMBER YOU WERE THERE AS COUNTY JUDGE ELECT LAST DECEMBER, THE CITY OF SAN ANTONIO, BURKE COUNTY, SAN ANTONIO WATER SYSTEM, CPS THE ENERGY COMPANY, SAN ANTONIO RIVER AUTHORITY, UNIVERSITY HEALTH, WHICH IS AN ENTITY OF THE COUNTY, BUT IS A PRETTY SUBSTANTIAL ENTITY IN AND OF ITSELF.

UTSA, OPPORTUNITY HOME AS THE HOUSING AUTHORITY, VIA, PORT SAN ANTONIO, ALAMO COMMUNITY COLLEGES, UT HEALTH, WHICH IS THE UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER, AND TEXAS A&M UNIVERSITY.

THAT GIVES YOU A FEEL FOR, AS I SAID WHEN WE HAD THESE 14 PEOPLE IN THE ROOM, THEY COMMENTED THAT THEY HAD NEVER, AS CEOS, BEEN IN THE ROOM WORKING ON A COMMON PROBLEM.

PLEASE PROCEED, HERE'S WHAT WE FOUND IN THE PROCESS.

POINT 1, PROCUREMENT IS DEEPLY FRAGMENTED ACROSS LOCAL GOVERNMENTS AND PUBLIC AUTHORITIES, ALL KINDS OF DIFFERENT POLICIES, ALL KINDS OF DIFFERENT GOALS, AND APPROACHES.

SECONDLY, SUPPLIER DIVERSITY IN MANY CASES IS TREATED AS A COMPLIANCE EXERCISE, SOMETHING YOU HAVE TO DO TO CHECK THE BOX OF COMPLIANCE, RATHER THAN AS A FUNDAMENTAL STRATEGIC DIMENSION OF OUR ECONOMIC DEVELOPMENT.

JUST AS STRONG AS ATTRACTING COMPANIES FROM OTHER PLACES OR THE THINGS WE DO IN ECONOMIC DEVELOPMENT, IS DEVELOPMENT OF SUPPLIER DIVERSITY.

FINALLY, MANY SUPPLIERS DO NOT HAVE ACCESS TO FINANCIAL PRODUCTS BONDING, OR THE CAPITAL NECESSARY TO TAKE ON LARGER CONTRACTS AND THAT BECOMES AN ISSUE OF CAPACITY BUILDING.

NEXT SLIDE, PLEASE. HERE'S WHAT WE DID, PULL TOGETHER AN ACCOUNTABILITY COUNCIL, JUDGE, OF WHICH YOU ARE PART, THE MAYOR, THE COUNTY JUDGE, CONGRESSMAN JOAQUIN CASTRO, WHO HAS SPENT A LOT OF TIME ON THIS ISSUE AND MADE IT A MAJOR GOAL FOR HIMSELF.

SENATOR JOSE MENENDEZ TO REPRESENT THE SENATE AND STATE REPRESENTATIVE BARBARA GERVIN HAWKINS, THE HOUSE.

THAT IS THE GROUP THAT WILL OVERSEE THIS OVER THE YEARS TO SEE WHETHER OR NOT THE AGENCIES OF OUR REGION ARE ON TRACK.

CEOS WORKING GROUP IS THE CITY MANAGER, THE COUNTY MANAGER, AS DAVID SAID, HE'S BEEN IN THOSE MEETINGS, AND THE CEOS OF THOSE 14 AGENCIES THAT I MENTIONED.

THAT IS THE CEO'S WORKING GROUP, WE'VE HAD SEVERAL MEETINGS OF THOSE.

THEN A PROCUREMENT INNOVATION GROUP, WHICH IS THE DESIGNEES OF THOSE 14 AT THE WORKING LEVEL, RENEE IS THE COUNTY'S REPRESENTATIVE, FOR EXAMPLE.

THESE ARE THE PEOPLE WHO ARE MEETING MORE REGULARLY IN MORE DETAIL TO DO THE WORK.

NEXT SLIDE, THESE ARE THE STAFF, IF YOU WILL, OF THIS EFFORT AND A BRANCH OFF FROM THE CITY.

AL SALGADO FROM UTSA, RENEE WATSON WHO IS REVERED IN THIS COMMUNITY IN THE SMALL BUSINESS SECTOR, AND OLIVIA TRAVIESO WHO I WANT TO INTRODUCE AT THIS POINT.

MANY OF YOU KNOW HER, BUT SHE'S JUST A GREAT MIND FOR STRATEGIC PLANNING.

NEXT THING.

[02:05:03]

YOU SEE THREE THINGS TO THINK ABOUT.

THE FIRST IS ACCESS INTO THE SYSTEM, HOW DO SMALL BUSINESSES GET INTO THE PROCUREMENT SYSTEM.

SECOND ONE IS, WHAT'S THE PROCESS INSIDE? CAN THEY NEGOTIATE THE INTERNAL PROCESSES OF THESE AGENCIES? THE THIRD ONE IS, HOW DO WE SUPPORT MAKING THEM STRONGER IN TERMS OF BONDING CAPABILITY, IN TERMS OF KNOWLEDGE OF BUSINESS, IN TERMS OF TRAINING PROGRAMS AVAILABLE TO THEM.

THREE DIFFERENT PROCESSES OR SILOS HERE.

WHAT YOU SEE ON ORANGE IS OUR FIRST CUT AT THOSE THINGS RELATED THAT ARE LOW-HANGING FRUIT THAT WE COULD WORK ON.

THAT'S THE FIRST THING I'M GOING TALK TO YOU ABOUT. NEXT SLIDE, PLEASE.

THE SECOND SET WE'RE GOING TO TALK TO YOU ABOUT IS THE CAPACITY-BUILDING PIECE.

THE THIRD SET WE'RE GOING TO TALK ABOUT IS THE THINGS WE NEED TO KEEP DOING FOR THE LONG RUN.

LET ME MAKE CLEAR.

THE PURPOSE OF THIS PRESENTATION IS TO ASK YOU TO SUPPORT A GRANT REQUEST TO KEEP THIS EFFORT GOING.

MOST OF THAT MONEY WILL GO TO THE THINGS THAT ARE INVOLVED IN THIS LAST PIECE.

I'LL GET TO IT IN THE NEXT FEW MINUTES. NEXT SLIDE.

THIS JUST DESCRIBES, ONCE AGAIN WHAT WE DID TO WORK ON THESE FIVE THINGS AS THE FIRST STEP, VENDOR PORTAL, CERTIFICATION, DE-BUNDLING, FORECASTING, AND VENDOR REQUIREMENTS.

I'LL GO INTO IT IN A SECOND, BUT IT'S INVOLVED INDIVIDUAL MEETINGS WITH EACH OF THE 14 AGENCIES AND THEIR STAFFS. NEXT SLIDE.

THE FIRST PIECE WAS THE VENDOR PORTAL, WHEN PEOPLE ACCESS ON A COMPUTER, THESE FIRMS, THESE SMALL PROVIDERS OF SERVICES, THE HOMEPAGE OF ANY OF THESE 14 AGENCIES, CAN THEY EASILY WITHIN TWO CLICKS, GET TO THE PROCUREMENT INFORMATION, THAT'S OUR GOAL.

EVENTUALLY, A BROAD REGIONAL LANDING PAGE WHERE YOU GO TO ONE PAGE AND THEN YOU GO TO THE WATER BOARD, OR TO SAWS, OR TO CPS, OR TO THE COUNTIES PORTAL.

BUT SIMPLICITY AND MANY OF THEM, WHAT WE FOUND IS THEY'RE NOT SIMPLE AT ALL.

THEY HAVE TO USE COMPUTER PROGRAMS AND WAYS TO GET THE BASIC INFORMATION. NEXT SLIDE.

THIS IS A CERTIFICATION PROCESS, WE HAVE BASICALLY THREE OR FOUR CERTIFICATION PROCESSES UNDERWAY ACROSS THESE DIFFERENT AGENCIES.

THE GOAL, PEOPLE CAN GET CERTIFIED IN ALL THREE, THERE'S RECIPROCITY SO THAT IF YOU'RE CERTIFIED AT ONE, YOU'RE AUTOMATICALLY CERTIFIED AT ANOTHER, THAT PROCESS IS UNDERWAY.

NEXT ONE. FORECASTING, YOU TOUCHED ON IT THIS MORNING AND RENEE MENTIONED IN YOUR EARLIER PRESENTATION.

HERE'S THE PROBLEM, FREQUENTLY THERE'S A GREAT DISCONNECT BETWEEN THE BUDGETING FUNCTION AND FORECASTING FUNCTION AT AN AGENCY, AND THE TRANSLATION OF THAT INTO THE CONTRACTS THAT PEOPLE CAN APPLY FOR.

EITHER THE BUDGETEERS FORECAST IT SO LATE THAT THERE ISN'T SUFFICIENT TIME FOR A SMALL BUSINESS TO RESPOND, OR THERE'S JUST NO CONNECTION WHATSOEVER.

A COUPLE OF AGENCIES ARE DOING A VERY GOOD JOB.

SAWS FOR EXAMPLE, DOES THEIR BUDGETING FAR ENOUGH IN ADVANCE THAT THEY THEN HOLD PUBLIC MEETINGS AND SAY, "THESE ARE THE CONTRACTS THAT ARE COMING UP WITH SIX MONTHS FROM NOW", AND PEOPLE CAN BEGIN TO RESPOND IN TIME.

IT JUST MAKES FOR A MORE LEVEL PLAYING FIELD.

THAT'S THE RECOMMENDATION HERE, JUST BETTER INTEGRATION.

I THINK THE THINGS YOU WERE DISCUSSING THIS MORNING, WILL FRANKLY GET THE COUNTY MOVING IN THIS DIRECTION AND THAT'S WHAT DAVID WANTS TO DO.

NEXT, IS DE-BUNDLING, YOU HEARD REFERENCE TO DE-BUNDLING THIS MORNING.

SIMPLY STATED, AGAIN, I WANT TO SINGLE OUT THE WATER SYSTEM.

THEY BUY VERY COMPLEX EQUIPMENT, INCLUDING ENGINEERING SERVICES, AND PIPELINE, AND GENERATING FACILITIES, ALL KINDS OF THINGS.

BUT THEY REALLY WORK HARD AT BREAKING IT INTO SUBCONTRACTS.

BREAKING IT INTO CONTRACTS THAT ARE SEPARATED REGIONALLY, THEY HAVE A WATER STATION UP ON THE NORTHWEST SIDE, THAT'S A SEPARATE CONTRACT FROM A WATER STATION IN THE SOUTHEAST SIDE, ETC.

DE-BUNDLING IS A WAY TO SELECT MULTIPLE VENDORS, GIVE SMALL BUSINESSES A CHANCE AT THESE THINGS THAT ARE VERY COMPLEX.

I WILL TELL YOU IT'S HARD BECAUSE SEVERAL OF THE AGENCY SAID, WELL LOOK I MEAN THE UNIVERSITY HEALTH, GEORGE SAYS, "WE BUY MRI MACHINES, WE BUY CAT SCANS. " HOW DO WE BUY THOSE FROM SMALL BUSINESSES AND MINORITY VENDORS, WELL, YOU CAN'T.

[02:10:04]

A LOT OF THINGS THAT CAN'T BE DE-BUNDLED AND ALL OF THESE AGENCIES.

NEXT SLIDE.

WHAT WE'RE DOING RIGHT NOW TO CLOSE OUT THIS PART OF THE PRESENTATION, WHAT WE'RE DOING IS WORKING WITH EACH OF THE AGENCIES TO GET A MEMORANDUM OF UNDERSTANDING THAT SAYS, "THEY'RE GOING TO WORK ON THESE FOUR THINGS." AS I SAID, THESE ARE THE LOW-HANGING FRUIT, THESE ARE THE THINGS WE TOOK ON FIRST. NEXT SLIDE.

THE NEXT SLIDE GOES TO CAPACITY BUILDING AND YOU SEE THERE PROCUREMENT ACADEMY, PROCUREMENT FELLOWSHIP, CAPITAL AND BUSINESS SUPPORT, PROCUREMENT NAVIGATORS, BOND ASSISTANCE PROGRAM, THOSE ARE THINGS WE WANT TO PUT IN A SINGLE PLACE.

NEXT SLIDE. THE NEXT SLIDE DEMONSTRATES HOW YOU COULD PUT THESE THINGS IN ONE FACILITY THAT BECOMES THE SUPPLY AND PROCUREMENT SERVICE CENTER FOR OUR REGION.

WHERE SMALL BUSINESSES CAN GO AND GET NOT ONLY ACCESS TO THE CERTIFICATION AND THOSE OTHER THINGS BUT GET ACCESS TO THE TRAINING THAT THEY NEED AND THE FINANCIAL SUPPORT THAT THEY NEED.

WE'VE GOT FINANCIAL SERVICES, YOU SEE CDFIS AND CAPITAL PROVIDERS LIKE LIFT CAN BE IN THIS FACILITY HELPING PEOPLE GET LOANS, YOU SEE, ACCESS TO BONDING CAN BE IN THIS FACILITY.

WE'RE WORKING WITH UNDER SEVERAL LIVER AND AUSPICES TRAINING PROGRAMS. THE UNIVERSITY OF HOUSTON, WE'LL BE STARTING HERE NEXT YEAR.

A MAJOR TRAINING PROGRAM THAT HAS BEEN A PHENOMENAL SUCCESS IN HOUSTON.

THEY'VE EDUCATED 700 ENTREPRENEURS AND 175 OF THEM HAVE ONGOING STABLE BUSINESSES.

THAT KIND OF INTEGRATION OF CAPACITY BUILDING. NEXT SLIDE.

THIS IS WHERE WE WANT TO DO IT, I WANT TO THANK PUBLICLY DR. AMY AND THE TEAM OVER THERE, VERONICA SALAZAR, WHO'S THE CFO, AND AL SALGADO FOR MAKING THE DURANGO BUILDING, WHICH IS LITERALLY ON CESAR CHAVEZ AVAILABLE.

A LOT OF THESE SERVICES THAT WE'RE DESCRIBING, PUTTING TOGETHER, AND MAKING IT USER-FRIENDLY FOR THE SMALL BUSINESSES WOULD BE IN THIS BUILDING.

WE LAST WEEK HAD A DECISION MADE BY THE CERTIFICATION AGENCY TO NOT RENEW A CONTRACT ON LOOP FOR TEN, SO THAT THEY COULD BE IN THIS BUILDING ALONG WITH THE OTHER SERVICES WITH ADEQUATE PARKING, AND A GOOD RELATIONSHIP WITH THE OTHER UTSA TRAINING ACTIVITIES.

NEXT SLIDE, ON THAT'S CORE WE'RE WORKING ON A MEMORANDUM OF UNDERSTANDING, THAT WILL ALLOW ALL OF THE 14 AGENCIES TO PARTICIPATE AND CONTRIBUTE TO THE CREATION OF A PROCUREMENT SERVICE CENTER.

FOURTEEN AGENCIES WITH A ROLE, WITH THE VOICE, WITH A PRESENCE IN A PLACE WHERE EVERYONE CAN GET DIRECT ACCESS TO THEM.

NEXT SLIDE, THE FINAL PIECE THAT I WANTED TO DESCRIBE HERE TO YOU IS THE GOING FORWARD, THE STAFF ACCOUNTABILITY, THE STANDARDIZATION OF REPORTING.

SO WE'RE COMPARING APPLES TO APPLES ACROSS THESE 14 AGENCIES, AND THEN A PERMANENT SYSTEM OF COORDINATION.

THAT'S THE WORK THAT LIES AHEAD.

THAT'S WHERE WE WERE ALL RIGHT AT THIS MINUTE.

I WOULD LIKE TO PERSUADE YOU TO JOIN US IN PUTTING TOGETHER THE FUNDING, SO THAT WE CAN SUPPORT THE CONTINUATION OF THIS EFFORT, WHICH I THINK CAN PAY BIG DIVIDENDS FOR OUR REGION.

AND FUNDAMENTALLY MEANS A CONTRACT WITH OCI TO CONTINUE TO PROVIDE THE CONSULTING SERVICES THAT THEY ARE.

NEXT SLIDE, THIS IS WHAT THE FUTURE COULD LOOK LIKE, SUPPLY SA, CENTRAL PROCUREMENT FACILITY WITH REGIONAL CERTIFICATIONS LOCATED IN THAT PLACE.

THEY VOTED TO BE THERE WITH THE PROCUREMENT SERVICE CENTER AND ALL OF THE CAPACITY BUILDING, AND ALL OF THE DIRECT SERVICES THERE, AND THEN THIS ADDITIONAL FORWARD-LOOKING TRACKING OF PROGRESS AND STANDARDIZATION OF REPORTING.

WE CAN DO BETTER THAN WE ARE AS I SAY TODAY, ONLY ABOUT 15% OF THE CONTRACTS ISSUED BY THESE MASSIVE ENTITIES, $9 BILLION WORTH GOES TO LOCAL SAN ANTONIO AREA BUSINESSES.

WE CAN DO BETTER THAN THAT.

WE HAVE A COUPLE OF PUBLIC AGENCIES THAT ARE PUSHING 30%, THAT'S GOOD.

WE HAVE OTHERS THAT ARE IN LOW SINGLE DIGITS.

WE CAN DO BETTER. AND THAT WOULD BE THE PURPOSE OF TRYING TO STRUCTURE THIS.

WE'RE STILL IN THE PROCESS WORKING WITH THE CEO'S OF GETTING THERE, BUT WE NEED TO HAVE THE STAFF,

[02:15:02]

NEXT SLIDE, THAT'S THE PROCESS NOW UNDERWAY.

WE HAVE A SUB-COMMITTEE OF THE CEOS REPORTING BACK RECOMMENDATIONS IN ABOUT SIX WEEKS FOR ACTION BY THE FULL CEO WORKING GROUP.

WE WILL ALSO TAKE THIS TO THE NETWORK IN SAN ANTONIO OF SMALL BUSINESS ADVOCATES, THE CHAMBERS OF COMMERCE, THE SMALL BUSINESSES ORGANIZATIONS, AND MAKE SURE WE DO THE FINAL TWEAKING BEFORE WE GO FINAL BACK TO THE CEO'S, TO MAKE SURE THAT THEY KNOW THAT THEIR WORDS HAVE BEEN HEARD.

NEXT SLIDE, I'LL HIT THIS VERY QUICKLY.

THESE ARE THE BENEFITS TO THE PUBLIC SECTOR, ALIGNING EFFORTS, SUCCESSFUL PRACTICES SHARED ACROSS AGENCIES, ETC.

LET ME SAY ON THIS POINT, SAN ANTONIO, BEXAR COUNTY, HAVE AN OPPORTUNITY OUR REGION TO PUT TOGETHER A VERY UNIQUE COMMITMENT TO PUBLIC PROCUREMENT.

SOMETHING LIKE THIS DOES NOT EXIST IN THE COUNTY, WE'RE ABOUT TO CREATE SOMETHING THAT OTHERS WILL WANT TO FOLLOW.

IN FACT, OLIVIA AND I GET CALLS LITERALLY EVERY WEEK FROM SOME PLACE THAT SAYS, WE WANT TO COPY WHAT YOU'VE STARTED.

WE'VE HEARD ABOUT IT, FRANKLY WE'RE NOT THERE YET WHERE WE HAVE SOMETHING WE CAN SHOW, WE DON'T HAVE RESULTS, BUT WE THINK WE CAN GET THERE WITH THE HELP THAT WE'RE ASKING FOR.

NEXT SLIDE IS MORE IMPORTANT THAN THE LAST ONE, BECAUSE IT TALKS ABOUT THE BENEFITS TO THE VENDORS AND SUPPLIERS, BASICALLY A KEY ECONOMIC PLAYERS IN OUR ECONOMY.

IT'LL MAKE IT EASIER FOR THEM TO PARTICIPATE IN LOCAL PROCUREMENT.

IT'LL GIVE THEM THE SUPPORT THEY NEED TO SUCCEED AND GROW.

IT WILL FOCUS ON TAKING FIRMS AND MOVING TO IN THE SECOND STAGE OF DEVELOPMENT.

THEY'LL RECEIVE A HIGHER PERCENTAGE OF THAT $9 BILLION, AND LOCAL SMALL BUSINESSES AND OTHERS WILL BE MORE ENGAGED, AND HAVE A GREATER VOICE IN THE PROCUREMENT PROCESS.

FINAL SLIDE IS THE ASK.

AND THAT IS ASKING FOR A PLANNING GRANT, WHICH HAS BEEN APPLIED FOR OUT OF SOME OF THE FUNDING THAT CAME IN FOR THE PANDEMIC, IN ORDER TO ASSIST IN THE RECOVERY OF THE SMALL BUSINESS, STABILIZE SMALL BUSINESS GOING FORWARD, MATCH THESE FUNDS WITH OTHERS THAT WE ARE WORKING FOR, AND HAVE THE STAFF ON HAND TO DO THE RESEARCH, TO DO THE PROJECT MANAGEMENT, TO ESTABLISH THE STRUCTURES AND SYSTEMS FOR THE FUTURE.

THEN TO BEGIN THE CONVERSATION WITH THE SMALL BUSINESS ADVOCATES AND OTHER LOCAL GOVERNMENT ENTITIES, AND THE REQUEST IS FOR $360,000 TO GET THIS PROGRAM IN PLACE.

IT IS A ONETIME REQUEST IN THE SENSE THAT THIS CONSULTANT GROUP WILL NOT BE MANAGING THIS FOR THE LONG RUN, BUT WE'LL PUT IT IN PLACE.

JUDGE AND MEMBERS OF THE COURT, THAT'S THE REQUEST AND THAT'S THE LOGIC FOR IT.

>> ANY QUESTIONS OR COMMENTS?

>> YES.

>> GO AHEAD, COMMISSIONER.

>> THANK YOU SO MUCH. THANK YOU, MR. SECRETARY FOR COMING TODAY AND MAKING THE PRESENTATION.

THERE IS A FATAL FLAW IN THE PRESENTATION, BUT I NEED YOUR HELP WITH UNDOING, BECAUSE I THINK IF YOU CONTINUE ON THAT PATH THE EFFORTS FOR INCLUSION WILL NOT BE REALIZED.

AND THAT IS PUTTING THE HOST ORGANIZATION AS UTSA, AND THE REASON IS BECAUSE GOVERNOR ABBOTT HAS RULED THAT THERE WILL BE NO DIVERSITY, EQUITY, AND INCLUSION.

AND GOVERNOR ABBOTT HAS POWER OVER THE REGENTS OF THE UNIVERSITY OF TEXAS SYSTEM AND THE BOARD OF UTSA, AND CAN ALMOST UNILATERALLY BECAUSE OF THE LEGISLATURE AND THE THINGS THEY'VE DONE.

THIS MEMBER THIS ENTIRE EFFORT THAT YOU HAVE PUT THESE POWERPOINTS TOGETHER FOR.

SO EXPLAIN TO ME IF YOU CAN.

WHAT I HEARD IS THAT THIS GROUP WANTS TO PUT THE SOUTH CENTRAL TEXAS REGIONAL CERTIFICATION AGENCY UNDER THE UTSA SYSTEM.

SO HOW IS IT THAT MY SPHERE IS AS SOON AS YOU DO THAT, THE STATE WILL COME IN IF THEY WERE GOING TO SAY THIS IS NOT IN COMPLIANCE WITH THE GOVERNOR'S ORDER OF NO DDI.

HOW DO YOU PROTECT THIS FROM THAT?

>> COMMISSIONER, THANK YOU FOR YOUR COMMENTS AND FOR YOUR INTERESTS OVER THE SPAN OF YOUR CAREER IN THIS SUBJECT.

FIRST OF ALL, IT IS NOT BEING PUT UNDER UTSA.

IT IS MAINTAINING ITS ROLE AS AN INDEPENDENT ENTITY GOVERNED BY THE MEMBER AGENCIES.

SO THE RCA BOARD PRESENTLY IS 14 OF THE AGENCIES THEMSELVES.

[02:20:08]

AND THAT'S WHERE WE ARE AT THIS POINT, THEIR TENANTS IN THE BUILDING, BUT NOT SUBJECT TO ANY GOVERNANCE ON THE PART OF THE UNIVERSITY OF TEXAS SYSTEM OR THE STATE OF TEXAS.

THE RATIONALE FOR THAT IS WE WERE LOOKING FOR A CENTRAL PLACE FOR EVERYBODY TO BE ABLE TO WORK TOGETHER, AND THAT'S WHAT I THINK WE'RE ON THE ROOT TO ACCOMPLISHING.

NOW LET ME SAY THIS, THAT IS ONLY A SHORT TERM PLACE TO BE, BECAUSE THEY HAVE THE SPACE, IT'S CENTRAL AND THEY HAVE THE PARKING.

IDEALLY, WE WOULD WANT TO CREATE A PROCUREMENT CENTER IN WHICH THE AGENCIES THEMSELVES COULD EITHER PAY RENT OR CREATE A PROCUREMENT CENTER.

YOU NOTICE FOR EXAMPLE, THAT THE CITY HAS THIS DEVELOPMENT CENTER OVER ON FLORES AND ALAMO, WHICH HAS BEEN A ROARING SUCCESS THAT STARTED ON MY WATCH.

AS MAYOR, WE RECOGNIZED WE NEEDED A CENTRAL PLACE FOR DEVELOPMENT SERVICES, FEES, ZONING, ETC.

AND THAT'S BEEN A ROARING SUCCESS.

WE COULD DO THE SAME THING IN PROCUREMENT.

WE PRESENTLY DON'T HAVE A BUILDING AVAILABLE TO PUT IT ALL IN.

WE THINK IT'S IMPORTANT TO TAKE AT LEAST A FIRST STEP, BECAUSE UTSA HAS THEIR SMALL BUSINESS DEVELOPMENT ACTIVITY THERE AT THE DURANGO BUILDING, WE'RE BASICALLY RENTING FROM THEM IN THE SHORT RUN, BUT NOT SUBJUGATED TO STATE POLICIES FOR STATE AGENCIES.

I HOPE THAT MAKES IT CLEAR.

[OVERLAPPING] VERY IMPORTANT DISTINCTION.

>> YEAH. THAT'S GOOD TO HEAR.

THANK YOU FOR THAT CLARIFICATION.

I WOULD SAY THAT ONE OF THE ENTITIES THAT COULD HOUSE AND HELP DO THIS PROGRAM THAT IS NOT IN THE MIX THAT SHOULD BE IN THE MIX, THAT'S THE COUNTY CLERK.

BECAUSE THE COUNTY CLERK IN THE ENTITY THAT HOLDS BIRTH RECORDS, THOSE BIRTH RECORDS DETERMINE RACE.

THERE'S A ROLE FOR THE COUNTY TO PLAY IN TERMS OF CUTTING OUT MIDDLEMAN IN TERMS OF THOSE CERTIFICATIONS.

SO I WANT TO JUST PROPOSE THAT I THINK THE COUNTY CLERK SHOULD BE BROUGHT TO THIS CONVERSATION AS PART OF THE STEERING COMMITTEE.

I WOULD VERY MUCH LIKE TO BE INCLUDED ON THE STEERING COMMITTEE OF THE ACCOUNTABILITY COUNCIL.

I DO THINK THERE'S A ROLE FOR THE FEDERAL GOVERNMENT AND THE MILITARY TO ALSO BE BROUGHT INTO THIS PROCUREMENT CONVERSATION BECAUSE THEY HAVE A LOT OF GOOD HUB AND 8(A) PROGRAM UTILIZATION FAR BETTER THAN MOST OF THE PUBLIC ENTITIES IN BEXAR COUNTY.

NOW, ONE OF THE BENEFITS I HAVE IS HISTORY ON THIS ISSUE.

THE SOUTH CENTRAL TEXAS REGIONAL CERTIFICATION AGENCY WAS FOUNDED IN 2000.

I FOUNDED MY BUSINESS IN 2001.

AND AT THAT TIME, THE PITCH BY THE GOVERNMENT LEADERS WAS THE EXACT SAME PITCH THAT WE WERE GOING TO HAVE THIS SOUTH CENTRAL TEXAS REGIONAL CERTIFICATION AGENCY TO BE A ONE-STOP SHOP FOR BUSINESSES.

THE CANADIAN PUBLIC ENTITIES COULD HAVE DONE THIS CONSOLIDATION, COLLABORATION A LONG TIME AGO.

DISPARITY STUDY AFTER DISPARITY STUDY HAD SAID FOR THE LAST 20, ALMOST 25 YEARS THAT THEY NEED TO BE COLLABORATING.

I AM A BIT SKEPTICAL IN TERMS OF THE REALITY OF THESE GOVERNMENTAL ENTITIES WHO HAVE DEPARTMENTS TASKED WITH DOING THIS DAILY THAT HAVE NOT BEEN ABLE TO COLLABORATE ONE PORTAL.

THIS IS NOT A NEW CONVERSATION, THIS IS A 24 YEAR OLD CONVERSATION.

AND I DO WANT TO LEVEL ABOUT THAT HISTORY BECAUSE THERE ARE BUSINESS PEOPLE, FRANKLY, ROLLING THEIR EYES RIGHT NOW BECAUSE THEY'VE HEARD A LOT OF THIS 20 PLUS YEARS.

SO I DO THINK THAT THERE SHOULD BE THIS COLLABORATION.

I LOVE OCI.

I AM NOT SURE WHAT IS GOING TO EXACTLY BE.

IN EXPERTISE DIFFERENCE WHEN YOU HAVE PEOPLE ALREADY [OVERLAPPING].

>> COMMISSIONER YOU'RE BREAKING UP BADLY. CAN YOU HEAR US?

[02:25:01]

>> I CAN HEAR YOU PERFECTLY. CAN YOU HEAR ME OKAY?

>> YEAH. BREAKING UP PRETTY BADLY.

LET ME JUST ASK A COUPLE OF SENTENCES TO RESPOND TO YOU SO WE'LL KEEP IT BRIEF.

ONE, THIS IS A WORK IN PROGRESS, WE'RE ASKING FOR SUPPORT FOR THE TEAM SO THAT IT CAN CONTINUE ITS WORK WITH THEY'RE WORKING EVERY SINGLE DAY OF THE WEEK TRYING TO GET THIS RIGHT.

SECONDLY, THERE IS A MOMENT HERE.

WE HAVE LEADERSHIP IN THE KEY AGENCIES AND NEVER BEFORE, AS I SAID EARLIER, HAVE WE HAD ALL 14 CEOS IN THE SAME ROOM ON THIS SUBJECT, OR FRANKLY ANY OTHER SUBJECT.

BUT 14 WILLING TO WORK TOGETHER TO TRY TO GET THIS DONE.

AND I THINK WE HAVE A SHOT AT DOING SOMETHING THAT HASN'T BEEN DONE BEFORE.

AND WITH OVERSIGHT, WITH AN ABILITY TO TRACK COMPARING APPLES TO APPLES IN TERMS OF METRICS.

AND THAT'S WHAT WE'RE ASKING THIS FUNDING TO BE ABLE TO COMPLETE OVER THE COURSE OF THE NEXT YEAR.

>> THE ONLY OTHER THING I WANT TO DO IS JUST SPEAK UP FOR LOCAL COMMODITIES AND LOCAL BUSINESSES.

I KNOW THAT IT MAY HAVE BEEN SAID AT UNIVERSITY HEALTH THAT THEY CAN'T BUY LOCALLY SOME OF THOSE MEDICAL EQUIPMENT PIECES, BUT THAT IS NOT ACCURATE.

THERE ARE MINORITY VENDORS IN MEDICAL NON-DURABLE AND DURABLE, AND OTHER SUPPLIERS THAT ARE LOCAL.

I KNOW THIS BECAUSE THEY COME TO ME AND THEY COMPLAIN ABOUT THE FACT THAT WE SHIPPED DOLLARS TO CITIES OUTSIDE OF SAN ANTONIO WHEN THEY COULD BUY THROUGH THESE ENTITIES.

I THINK THE RECIPROCITY LAW THAT TEXAS HAS IMPLEMENTED NEEDS TO BE LOOKED AT FURTHER BY THIS GROUP.

THAT IS THE ONLY COMMENT, I THANK YOU ALL FOR ALLOWING THIS PRESENTATION, BUT I'M GOING TO ABSTAIN BECAUSE I THINK THAT THERE ARE SOME COMPONENTS THAT HAVE BEEN TALKED ABOUT BEFORE THAT MANY BUSINESS PEOPLE WHO WOULD WATCH THIS PRESENTATION AND THIS IS ALL FOR THE RECORD.

HAVE HEARD THIS MANY TIMES FOR THE LAST 24 YEARS, BUT HOPEFULLY, THE 24TH YEAR WILL BE THE CHARM. THANK YOU, JUDGE.

>> THANK YOU. COMMISSIONER CLAY-FLORES.

>> YEAH. THIS IS ACTUALLY THE FIRST TIME I'M HEARING ABOUT THIS WHEN I SAW IT ON THE AGENDA, I'M USUALLY SOMEONE COMES TO MEET WITH US OR BRIEF MY STAFF OR SOMETHING SO I CAN HAVE A BETTER IDEA ABOUT IT BEFORE IT'S PRESENTED AT COMMISSIONERS COURT.

I DO HAVE SOME QUESTIONS.

THE 360 THAT'S AN ASK FOR THE COUNTY, ONLY ON THE COUNTY?

>> THE 360 OF THE COUNTY, CORRECT.

THE CITY HAS SET ASIDE 500,000 IN THEIR LAST BUDGET FOR PROCUREMENT RELATED COMMITMENTS, AND WE'RE WORKING WITH THE CITY AND UTILIZING SOME OF THAT MONEY FOR THIS PURPOSE AS WELL.

>> WHAT ABOUT THE OTHER MEMBER AGENCIES? HOW MUCH ARE THEY CONTRIBUTING EACH?

>> WE HAVEN'T ASK THEM FOR MONEY FOR THIS STUDY BECAUSE IT'S A COMPLEX.

I MEAN, IT'S HARD TO GO AGENCY BY AGENCY AND GET THE FUNDING.

HOWEVER, THEY ALL, FOR EXAMPLE, CONTRIBUTE TO THE REGIONAL CERTIFICATION AGENCY.

THEY ARE BASICALLY ALLOCATED A COMMITMENT, AN AMOUNT.

>> OKAY.

>> ALL 14 OF THEM COMMIT TO THE REGIONAL CERTIFICATION PROCESS.

AND ALL OF THEM HAVE PEOPLE WHO ARE FOCUSED ON PROCUREMENT AS WELL AS INCLUSIVENESS IN THEIR PROCUREMENT.

AND THEY HAVE BASICALLY STAFF PEOPLE WHO ARE PART OF THIS PROCESS, FUNDING, HELPING STAFF AT THAT WAY.

>> BUT THE DIRECT ASKED IS ONLY FROM THE CITY AND THE COUNTY.

>> AT THIS TIME.

>> OKAY. AND WHAT'S THE TOTAL BUDGET?

>> WELL, THE TOTAL BUDGET WE PROBABLY NEED ABOUT 500,000 OR SO TO GET THROUGH THIS YEAR.

>> OKAY.

>> AND WE BELIEVE THAT WOULD BE SUFFICIENT TO DO THIS.

>> OKAY. AND IS THIS SETUP AS A SEPARATE NON-PROFIT OR HOW WAS IT?

>> I KNOW IT IS NOT SET UP AS A SEPARATE NON-PROFIT, IT WOULD BE A FEE TO A CONSULTANT ENTITY.

I AM NOT PART OF THAT.

I'M A VOLUNTEER.

I'M HEAD OF THE UMBRELLA, HEAD OF THE ADVISORY COMMITTEE, BUT THE CONSULTANT IS OCI.

>> SO THE 360 WOULD BE GOING TO PAY SPECIFICALLY FOR OCI.

>> CORRECT.

>> WHAT? ENTIRELY FOR OCI.

>> CORRECT.

>> OKAY. ALL RIGHT. THANK YOU.

>> COMMISSIONER RODRIGUEZ.

>> THANK YOU, JUDGE. I'LL BE BRIEF.

HENRY, THANK YOU FOR BEING HERE.

THANK YOU FOR TAKING ON WHAT IS A BIG TASK THE TRIAL AND HEARD THIS.

IF ANYBODY CAN HELP DO IT, I KNOW YOU CAN IN YOUR EXPERIENCE.

I THINK IT'S AS COMMISSIONER CALVERT MENTIONED, I KNOW IT'S A CONVERSATION THAT HAS BEEN ONGOING FOR DECADES AND I THINK TO BE ABLE TO LOOK FOR THOSE EFFICIENCIES IN COLLABORATING,

[02:30:05]

I THINK THAT'S A GOOD THING.

I DID WANT TO ASK YOU, I THINK YOU MENTIONED AT SOME POINT A CONVERSATION WITH THE SCHOOL DISTRICTS, ALTHOUGH I NOTICED THEY'RE NOT PART OF THE PAGE THAT DESIGN WITH THE LOGOS.

AND I'M NOT TRYING TO MAKE YOUR JOB HARDER.

BUT WHEN YOU THINK ABOUT LOCAL PURCHASING POWER WITH PUBLIC DOLLARS, WITH 17 SCHOOL DISTRICTS HERE, I WONDERED IF YOU HAD ANY DISCUSSIONS WITH THEM ABOUT PARTICIPATION OR ANY KIND OF INVOLVEMENT.

>> WE MADE A CONSCIOUS DECISION AT THIS TIME TO DEAL WITH THE AGENCIES THAT HAVE SOME RELATIONSHIP WITH THE CITY AND THE COUNTY, IN SOME FORM.

THE SCHOOL DISTRICTS ARE UNDER FIRE FOR A LOT OF THINGS AT THE MOMENT, FROM EVERYTHING, FROM BOOKS IN THE LIBRARIES TO BATHROOM QUESTIONS, AND TRANSGENDER, AND ATHLETICS.

BUT MY THINKING IS IF WE CAN GET THESE 14 AGENCIES STARTED, THEN THE NEXT CONCENTRIC CIRCLE WOULD BE OTHER PUBLIC AGENCIES, INCLUDING POTENTIALLY THE SCHOOL DISTRICTS.

AND THEN BEYOND THAT, THERE'S A NETWORK THAT THE AREA FOUNDATION HAS PULLED TOGETHER, WHICH IS FOCUSING ON THE LARGEST BUSINESSES IN TOWN.

BUT I THINK WE HAVE TO GO IN STEPS.

AND RIGHT NOW, 14 IS ABOUT ALL THE CATS WE CAN AFFORD TO HEARD.

>> SURE.

>> AND I THINK WE'RE DOING REASONABLY WELL.

BUT I WANT TO GET AT LEAST THAT FIRST STEP.

>> OKAY. I KNOW THAT THIS IS NOT AN ACTION ITEM THAT THEY JUDGE AND IT SAY JUST FOR DISCUSSION.

>> CORRECT.

>> I WOULD LIKE AS COMMISSIONER CLAY-FLORES MENTIONED, AS YOU FORMALIZE, YOU'RE ASKED FROM THE COUNTY A MORE SPECIFIC BUDGET BREAKDOWN OF TOTAL DOLLARS IN YEAR ONE, WHAT YOU WOULD EXPECT MOVING FORWARD.

I KNOW THOSE ARE PROJECTIONS, BUT IN THE DRAFT MOU THAT WE'VE GOT, IT TALKS ABOUT A FINANCIAL CONTRIBUTION FROM EACH ENTITY OPERATING EXPENSES GOING FORWARD.

AGAIN, I KNOW THIS IS A PRELIMINARY EARLY DISCUSSION, BUT I WOULD JUST LIKE TO SEE THAT BREAKDOWN AT SOME POINT WHEN YOU COME FORMALLY FORM POTENTIAL ACTION FROM THE COUNTY ON THEM.

>> ABSOLUTELY. FIRST OF ALL, LET ME THANK YOU FOR GIVING US A CHANCE TO BRIEF THE COURT ON THIS.

COMMISSIONER CLAY-FLORES THIS IN SOME SENSE IS BRINGING IT TO YOU AHEAD OF ANY REQUESTS FOR SPECIFIC ACTION THAT WILL COME AT SOME FUTURE POINT.

HOWEVER, I'M MORE THAN HAPPY, AS IS THE REST OF OUR TEAM, INCLUDING JANIE, FOR EXAMPLE, TO VISIT WITH YOU INDIVIDUALLY AND LAYOUT HOW WE EXPECT THIS TO GO FORWARD.

WE DO, OF COURSE OWE YOU A MORE SPECIFIC BUDGET THAT INDICATES HOW EXACTLY THE RESOURCES WOULD BE ALLOCATED.

NOW, THERE ARE TWO DIFFERENT KINDS OF RESOURCES.

THERE'S THE RESOURCES WE'RE ASKING FOR RIGHT NOW TO GET THIS STUDY COMPLETED.

IT'S MORE THAN A STUDY, TO ACTUALLY GET THE STRUCTURE IN PLACE.

AND THAT MEANS WORKING WITH THE 14 ENTITIES AS WELL AS WITH THE NETWORK OF SMALL BUSINESS ADVOCATES ACROSS THE COMMUNITY.

IT'S GETTING THE STRUCTURE IN PLACE, THAT'S WHAT THIS GOES FOR.

IN THE LONG RUN, TO KEEP IT GOING, YOU NOW CONTRIBUTE TO THE REGIONAL CERTIFICATION AGENCY.

BUT THAT MONEY HAS NOT GONE UP IN A LONG TIME, THERE YOU COULD PROBABLY ANTICIPATE THERE'S GOING TO HAVE TO BE MORE TO KEEP A QUALITY CERTIFICATION AGENCY IN PLACE.

WE'RE RAISING A LOT OF FEDERAL MONEY AND OTHER MONEY, PHILANTHROPIC AND OTHER, FOR OTHER PIECES OF THIS.

BUT IF WE WANT TO HAVE A FUNCTIONAL PROCUREMENT SYSTEM OF THIS NATURE FOR THE LONG RUN, THERE PROBABLY WILL BE OVER THE YEARS SOME REQUESTS FOR INCREASING PRESENT DUES TO THE REGIONAL CERTIFICATION AGENCY.

>> HENRY, THANK YOU FOR YOUR PRESENTATION.

OBVIOUSLY, I BELIEVE I WAS AT THE FIRST MEETING THAT YOU HAD EVERYBODY AND I CAME, AS YOU SAID, THE COUNTY JUDGE ELECT, JUDGE WOLFF WAS THERE AS THE COUNTY JUDGE AND HE GAVE HIS COMMITMENT TO THIS PARTICULAR PROGRAM.

I THINK DAVID SMITH WAS ALSO THERE AS COUNTY MANAGER.

THIS IS SOMETHING THAT I WANT TO SEE THROUGH.

I WILL NOT SPEAK FOR MY COLLEAGUES.

YOU ALL WILL HAVE TO DO YOUR HOMEWORK AND COME BACK AND MAKE THE SPECIFIC ASK WITH THE DETAILS THAT I BELIEVE THEY'VE ASKED, THEY'D BE PROVIDED.

BUT I AM STRUCK WITH THE SERENDIPITOUS NATURE OF WE SPENT A LOT OF TIME THIS MORNING DISCUSSING ABOUT PROCUREMENT ON MICRO LEVEL OF THE COUNTY GOVERNMENT.

YOU ON THE OTHER HAND, ARE TALKING ABOUT PROCUREMENT IN THE ECONOMY, AND THEY ARE CONNECTED.

[02:35:02]

>> ABSOLUTELY.

>> THEY'RE CONNECTED, AND SO I'M STRUCK WITH WE HAVE A LOT, PERHAPS, TO LEARN FROM THIS COLLABORATION.

I BELIEVE THAT THE WORKING GROUP HAS A LOT TO LEARN ABOUT THE COUNTY, AND ESPECIALLY IF WE'RE TO MAKE ANY CHANGES HERE AT BEXAR COUNTY, AS YOU KNOW, YOU'VE BEEN AROUND A LONG TIME AND THINGS HAVE BEEN RUNNING LIKE THIS IN BEXAR COUNTY FOR A LONG WAY.

I THINK THERE ARE WAYS TO IMPROVE AND I AM COMMITTED TO, AS YOU KNOW, HENRY, THE JAPANESE WORD OF CONTINUOUS IMPROVEMENT IS KAIZEN.

I THINK THAT IS SOMETHING THAT WE SHOULD ALL BE COMMITTED TO.

I WOULD AWAIT YOUR FORMAL PRESENTATION AT THE APPROPRIATE TIME, WE'LL LET THE COMMISSIONERS COURT TAKE UP THE ACTION AT THE APPROPRIATE TIME.

>> THANK YOU.

[OVERLAPPING]

>> MS. TRAVIESO, DID YOU WANT TO ASK ANYTHING? DID WANT TO ADD ANYTHING?

>> COME ON UP, JOIN THE PARTY.

>> AS OLIVIA COMES UP, LET ME TELL YOU, WE ARE FORTUNATE IN SAN ANTONIO TO HAVE TALENT OF OLIVIA AND HER COLLEAGUES.

I'VE WORKED WITH A LOT OF PEOPLE AT A LOT OF LEVELS OF GOVERNMENT AND CORPORATE AND OTHERWISE, AND SHE'S AS STRONG AN ANALYTICAL TALENT AS I HAVE SEEN AND A GREAT HELP IN THIS PROCESS.

>> THANK YOU VERY MUCH, HENRY, AND THANK YOU, COMMISSIONERS FOR THE OPPORTUNITY TO SHARE THIS INFORMATION WITH YOU ALL.

THE ONLY POINT OF CLARIFICATION THAT I WOULD ADD TOO, IS WHAT HENRY SPOKE ON, WHICH WAS JUST THE DISTINCTIONS IN THE DIFFERENT FUNDING THAT WILL BE FOR YOUR REVIEW.

THERE IS THE PLANNING GRANT PROPOSAL.

A FORMAL PROPOSAL HAS BEEN SUBMITTED BY OCI TO THE COUNTY FOR THE SPECIFIC CONSULTING ARM, THE ADMINISTRATIVE BACKBONE FUNCTIONS THAT WOULD COME WITH SETTING UP THE STRUCTURE, CONTINUING TO CONVENE THE NECESSARY ENTITIES AND MOVE THIS PROJECT FORWARD SEPARATELY, THERE WOULD BE THE FUNDING CONTRIBUTIONS THAT WOULD COME FROM THE COUNTY AND THE OTHER 13 ENTITIES AS A PART OF THE LARGER SUPPLY ESSAY INITIATIVE.

THAT IS SOMETHING THAT IS ONGOING IN TERMS OF DEVELOPING THE BUDGETS, THE PROJECTIONS, THE ORGANIZATIONAL STRUCTURE, ALL OF THAT THAT WOULD GO IN TOWARD THE SUSTAINABILITY OF THE OVERALL EFFORT MOVING FORWARD.

SO THERE'S TWO DIFFERENT PIECES TO THAT.

>> SO IT'S NOT JUST THE ONETIME ASK LIKE SECRETARY CISNEROS PUTS IT?

>> THE FIRST PART OF THE CONSULTING SERVICES FROM OCI GROUP AND THAT PROPOSAL, THAT IS A ONETIME ASK.

>> IF, FOR EXAMPLE, WE STICK WITH THE REGIONAL CERTIFICATION AGENCY, IT GOES ON IN PERPETUITY, THE COUNTY NOW MAKES A CONTRIBUTION.

BUT IT'S LIKELY THAT THEY'LL HAVE TO BE MORE FOR THAT TO GET IT UP TO QUALITY AND TO CARRY IT ON INTO THE LONG RUN.

SO WHAT I MEANT BY A ONETIME CONTRIBUTION IS TO GET THIS WHOLE STRUCTURE SETUP AND FUND THE STAFFING THAT WE NEED TO DO THAT.

>> THANK YOU.

>> HI, JUDGE. JUST HAVE ONE OBSERVATION.

>> GO AHEAD, COMMISSIONER CALVERT.

>> THANK YOU SO MUCH, JUDGE.

I JUST WANT TO AGREE WITH COMMISSIONER RODRIGUEZ ABOUT ADDING THE SCHOOL DISTRICTS.

THE REASON IS THEY ARE THE LARGEST SOURCE OF CONTRACT OPPORTUNITY.

YOU LOOK AT NORTHSIDE ISD, ANY ISD, ALL THESE ISDS DO A LOT OF OPPORTUNITY, AND I THINK IN THIS CONSULTING CONTRACT, THERE SHOULD BE A LOOK IN THIS PLAN AT INCLUDING THE SCHOOL DISTRICTS AND LEVERAGING THEM IN SOME WAY OR WAYS.

THE OTHER THING I DO WANT TO POINT OUT ABOUT THE SOUTH CENTRAL TEXAS REGIONAL CERTIFICATION AGENCY, RIGHT NOW MANY, IF NOT ALL, OF THE 14 FOLKS WHO HAD BEEN A PART OF THIS EFFORT ARE REPRESENTED ON THAT BOARD.

UNFORTUNATELY, THE SOUTH CENTRAL TEXAS REGIONAL CERTIFICATION AGENCY IS IN FINANCIAL LIMBO.

SOME OF THAT IS DUE TO THE ELECTED NOT INCREASING THE AMOUNT OF MONEY AS SECRETARY CISNEROS SAID, WE NEED TO DO THAT.

SOME OF IT IS THOSE LEADERS' OVERSIGHT HAS NOT ADOPTED THE AUDIT.

THERE WAS AN AUDIT AND THEIR AUDITOR DID NOT GET AFFIRMATION OR ADOPTION OF THINGS THAT NEEDED TO BE ADOPTED.

AND SO I AM CONCERNED ABOUT THE BRAIN TRUST OF SOME OF THE SAME ENTITIES AND PEOPLE WHO HAVE LED TO THE DECLINE OF THESE AGENCIES LEADING THE EFFORT TO REVIVE THEM WHEN THEY'RE NOT ADOPTING THINGS THAT ARE IN THE AUDITOR'S REPORT, THOSE AUDITOR'S REPORT SHOULD BE ADOPTED AND THERE ARE BYLAW AMENDMENTS THAT NEEDS TO BE DONE.

THAT SHOULD BE PART OF THE ANALYSIS OF THE CONSULTANT AS WELL IF WE ARE TRULY GOING TO HELP OUR SMALL BUSINESSES.

I'M VERY CONCERNED IN TEXAS AT THIS TIME THAT THERE ARE EFFORTS UNDERWAY TO DESTROY DIVERSITY, EQUITY, AND INCLUSION.

[02:40:02]

SO WE WILL KEEP A VERY CLOSE EYE ON THIS EFFORT AND MAKE SURE THAT THE EFFORT IS NOT WASTED. THANK YOU, JUDGE.

>> COMMISSIONER RODRIGUEZ.

>> JUST A FINAL WORD BEFORE YOU LEAVE, HENRY, ON BEHALF OF THE COURT, HAPPY BIRTHDAY.

I THINK YOU HAD A BIRTHDAY EARLIER THIS WEEK.

GLAD TO SEE YOU'RE HEALTHY.

NO MORE HAND GLIDING OR SKYDIVING, WHATEVER IT IS YOU'RE DOING, BUT JUST WANTED TO WISH YOU A HAPPY BIRTHDAY.

>> THANK YOU VERY MUCH.

MY PRINCIPAL BIRTH ACTIVITY THIS YEAR WAS INVITED BY THE SAN ANTONIO MISSIONS TO THROW THE FIRST BALL AT SUNDAY IN 100 DEGREE WEATHER, AND I DID NOT EMBARRASS MYSELF.

IT WENT STRAIGHT AND THE CATCHER CAUGHT IT IN THE CROUCH.

>> THAT'S RIGHT. [LAUGHTER] [OVERLAPPING] PROBABLY WOULD HAVE CALLED IT A BALL.

>> LET ME JUST ASK, YOU'LL BE THE POINT OF CONTACT AND THEN YOU WILL HELP THIS GROUP PUT THIS ON THE AGENDA AT THE APPROPRIATE TIME?

>> YES, SIR.

RENEE WATSON IS ALSO INVOLVED ON THE, WHAT'S THE NAME?

>> SO HENRY, THEY'RE YOUR CONTACTS [OVERLAPPING] OLIVIA, HERE'S A CONTACT.

THANK YOU VERY MUCH.

HAVE A GREAT DAY. HAPPY BIRTHDAY, HENRY.

>> THANK YOU. THANKS, DAVID.

>> LET'S TRY TO GET THIS LAST ONE WRAPPED UP HERE.

[4. Presentation an discussion regarding the long-Range Financial Forecast (LRFF) for the General Fund and the Debt Fund for FY 2022-23 through FY 2027-28.]

MS. TINA SMITH-DEAN.

>> GOOD MORNING, JUDGE AND COMMISSIONERS.

TINA SMITH-DEAN WITH THE COUNTY MANAGER'S OFFICE TO PRESENT TO YOU THE LONG-RANGE FINANCIAL FORECASTS.

BEFORE WE GET TOO MUCH INTO THE FORECAST, WOULD LIKE TO GIVE THE COURT AN UPDATE ON WHERE WE ARE WITH THE FISCAL YEAR 2022-'23 BUDGET.

WE STARTED OUT THIS FISCAL YEAR WITH 10 MILLION MORE THAN WE BUDGETED.

THAT WAS MADE UP OF $14 MILLION IN ADDITIONAL REVENUE.

EXPENDITURES WERE $4 MILLION HIGHER THAN WE ANTICIPATED.

WE ENDED UP STARTING THIS FISCAL YEAR WITH 10 MILLION MORE DOLLARS THAN WE ANTICIPATED.

FOR FISCAL YEAR '22-'23 REVENUES, WE ARE ESTIMATING, NOT THE COUNTY AUDITOR'S OFFICE WHICH IS THE ENTITY THAT CERTIFIES REVENUE, WE ARE ESTIMATING WE WILL HAVE REVENUE 32 MILLION HIGHER THAN THE AMOUNT CERTIFIED.

ABOUT JUST UNDER 11 MILLION OF THAT WOULD BE IN PROPERTY TAXES, ABOUT NINE MILLION IN INVESTMENT INTERESTS, SIX MILLION IN MOTOR VEHICLE TAXES, AND THEN SOME OTHER SMALLER LINE ITEMS AND REVENUE.

THEN AS FAR AS EXPENDITURES, WE'RE ESTIMATING, THEY WILL COME IN $9.1 MILLION LOWER THAN BUDGETED.

THAT'S PRIMARILY DUE TO FUNDING THAT WAS BUDGETED FOR THE MARKET SETTING THAT WAS IMPLEMENTED LATER IN THE FISCAL YEAR THAN WE ANTICIPATED, AND THEN THERE'S ALSO EMPLOYEE TURNOVER OCCURRING.

ONTO THE LONG-RANGE FORECASTS, WE DO THIS ANNUALLY.

IT GIVES US A PICTURE OF WHAT IT'S GOING TO LOOK LIKE OVER THE NEXT FIVE YEARS.

IT SETS THE STAGE FOR THE BUDGET PROCESS, THE UPCOMING BUDGET PROCESS.

THE PROJECTIONS IN THIS LONG-RANGE FINANCIAL FORECASTS ARE BASED ON OUR SECOND QUARTER ESTIMATES FOR THIS FISCAL YEAR.

WE MAKE FUTURE PROJECTIONS BASED ON HISTORICAL REVENUE AND EXPENDITURE PATTERNS.

THEN WE ALSO INCLUDE KNOWN COSTS, THINGS WE KNOW THAT THE COUNTY IS GOING TO HAVE TO PAY FOR IN THE FUTURE, SUCH AS CONTRACTS, HEALTH INSURANCE, AND MARKET STUDY COSTS FOR THE MARKET STUDY THAT THE COURT JUST APPROVED IN APRIL, I BELIEVE IT WAS.

PROPERTY TAXES ACCOUNT FOR ABOUT 80% OF GENERAL FUND REVENUES.

THE BEXAR COUNTY APPRAISAL DISTRICT, WHAT WE CALL BCAD, PROVIDED ITS FIRST PRELIMINARY REPORTS ON APRIL 25TH.

THAT WAS BEFORE THE PROTEST DEADLINE OF MAY 15TH.

SO THEY WEREN'T EXACTLY UP TO DATE ON HOW MANY PROTESTS AND HOW MUCH THOSE WERE VALUED AT.

WE RECEIVED A REPORT ON JUNE 2ND, AND SO WE USE THAT REPORT FROM BCAD HAD TO DETERMINE WHAT WE ESTIMATE PROPERTY TAXES WILL BE.

WE WILL RECEIVE THE FINAL REPORT ON JULY 25TH, AND THAT WILL BE THE REPORT THAT THE TAX ASSESSOR COLLECTOR USES WHEN HE CALCULATES THE TAX RATE.

OUR REVENUE ASSUMPTIONS IN THIS LRFF ARE: FOR PROPERTY TAX REVENUE, WE ARE ESTIMATING THAT IT WILL GROW BY ABOUT 5.9% OVER LAST YEAR, AND THEN FOR THE NEXT FOUR YEARS WE'RE ESTIMATING 4% GROWTH.

ALL OTHER REVENUES, AS I NOTED EARLIER, ARE PROJECTED TO GROW AT THE HISTORICAL GROWTH RATES, AND SOME MAJOR ONES ARE COURT COSTS AND FINDS, MOTOR VEHICLE TAXES AND SERVICE FEES.

[02:45:01]

IN TERMS OF EXPENDITURE ASSUMPTIONS, EXISTING PERSONNEL COSTS, WE ASSUME THAT THOSE CONTINUE AT THE CURRENT AND CONTRACTUALLY OBLIGATED LEVELS.

IN OTHERWISE, WE'RE ASSUMING ANY ADDITIONAL INCREASES IN PERSONNEL COSTS OVER THE FIVE YEARS.

>> AND THAT'S A VERY IMPORTANT ASSUMPTION, OBVIOUSLY.

WE'RE NOT PREDICTING THAT THE COURT WILL NOT APPROVE FUTURE RAISES FOR EMPLOYEES OR COLA'S.

BUT IT'S 100% IN THE COURTS PURVIEW TO CHOOSE TO DO THAT.

SO FOR FORECASTING PURPOSES, WE DON'T ASSUME THAT YOU WILL DO THAT.

WE ASSUME FLAT PERSONNEL COST OTHER THAN THE KNOWN FUTURE CONTRACTUALLY OBLIGATED COST OF THE COLLECTIVE BARGAINING AGREEMENT.

>> OTHER BASELINE EXPENDITURES WE ESTIMATE BASED ON HISTORICAL TRENDS, THAT WOULD BE YOUR TRAVEL COSTS, SUPPLIES, AND OPERATIONAL EXPENSES, AND CASH FUNDED CAPITAL EXPENDITURES.

THEN WE INCLUDE OTHER SIGNIFICANT EXPENSES WE KNOW ARE GOING TO HAPPEN OVER THE NEXT FIVE YEARS.

WE CATEGORIZE THOSE FIRST AS FUTURE OBLIGATIONS, THINGS WERE CONTRACTUALLY OBLIGATED TO PAY FOR, AND THEN WE ALSO MAKE SOME ASSUMPTIONS AND OR ESTIMATES FOR OTHER EXPENDITURES THAT WE THINK MAY COME UP IN THE FUTURE.

FUTURE OBLIGATIONS.

THIS IS A BUSY SLIDE, BUT THIS OUTLINES THE FUTURE OBLIGATIONS THAT WE KNOW WE'RE GOING TO HAVE TO PAY FOR OVER THE NEXT FIVE YEARS AND I'LL GO INTO DETAIL ON EACH ONE OF THESE IN THE NEXT COUPLE OF SLIDES.

SO FIRST OF ALL, THE NON COLLECTIVE BARGAINING AGREEMENT MARKET STUDIES.

SO THIS WOULD BE EMPLOYEES THAT ARE NOT COVERED BY THE UNION.

THE PARTIAL ESTIMATED COSTS IN THIS FISCAL YEAR AS A RESULT OF IMPLEMENTATIONS 3.9 MILLION AND THEN THE ANNUAL RECURRING COST OF THAT IS 11.1 MILLION OVER THE NEXT FOUR YEARS ANNUALLY.

THE COLLECTIVE BARGAINING AGREEMENT, WE'VE INCLUDED THAT BASED ON THE COLLECTIVE AGREEMENT THAT'S ACTUALLY IN PLACE RIGHT NOW WITHOUT ANY CHANGES OR AMENDMENTS.

THERE WAS A 5% INCREASE FOR ALL OF THOSE EMPLOYEES IN FISCAL YEAR 21, 22, AN ADDITIONAL 5% WAS ADOPTED MID YEAR IN 2022.

FISCAL YEAR 22, 23 IN OCTOBER OF THIS YEAR, THEY RECEIVE 5% AND THEN THEY'LL RECEIVE 2.5% IN 23, 24, 25.

SO THOSE ARE INCLUDED IN THE FORECAST.

WE'VE INCLUDED THE COSTS ASSOCIATED WITH INCREASES TO ATTORNEY FEES.

THE COUNTY COURT-AT-LAW JUST ADOPTED A NEW FEE SCHEDULE EFFECTIVE MAY 1ST.

WE'RE ESTIMATING THAT WILL INCREASE COSTS BY SIX MILLION.

THE CIVIL DISTRICT COURT ATTORNEY AD LITEM FEE INCREASES WERE EFFECTIVE APRIL 21ST, AND WE'RE ESTIMATING THAT TO BE ABOUT $720,000 ANNUALLY.

AND THEN THE CRIMINAL DISTRICT COURTS ADOPTED A NEW FEE SCHEDULE MAY 1ST, AND WE'RE ESTIMATING ABOUT $780,000 ANNUALLY.

>> DID WE GET A PHYSICAL NOTE BEFORE THOSE INCREASES WENT INTO EFFECT?

>> WE DID NOT.

THE BUDGET OFFICE DID NOT RECEIVE ANY OF THAT.

>> SO COMMISSIONERS COURT DIDN'T GET ANY WARNING ABOUT THESE INCREASES?

>> NO, I'M NOT AWARE OF ANYTHING.

>> DO THEY HAVE TO GO THROUGH COMMISSIONERS COURT?

>> NO.

>> NO.

>> BUT THEY SHOULD?

>> WHEN YOU PAY THE BILLS.

>> AND LET ME ALSO SAY, FOR THE CRIMINAL DISTRICT COURTS IN PARTICULAR, THIS IS BASED ON WHAT THEY ACTUALLY ADOPTED MAY 1ST, IF THEY WERE TO UNDERTAKE TO INCREASE PERCENTAGES SIMILAR TO WHAT THE COUNTY COURTS ENACTED, THIS FORECAST WOULD END UP BEING MUCH WORSE.

>> SO EXPLAIN THAT TO ME.

THEY CAN INCREASE FEES, BUT WE HAVE TO PUT IN THE BUDGET. BUT WE DIDN'T APPROVE IT.

>> THAT'S CORRECT. [BACKGROUND] [LAUGHTER]

>> BY STATUTE, COMMISSIONER, THE STATUTE ALLOWS THEM TO INCREASE FEES SUBJECT TO THOSE FEES BEING REASONABLE.

BUT YES, IT IS BY ORDER.

>> THANK YOU. [OVERLAPPING]

>> OH, SORRY. GO AHEAD.

>> WE'VE ALSO INCLUDED THE CASH MATCH FOR THE MANAGER ASSIGNED COUNCIL BY FISCAL YEAR 25-26, THAT'LL BE FUNDED 100% BY THE COUNTY AND THE AMOUNT OF $1.6 MILLION.

AND THEN JUST RECENTLY, THE COURT APPROVED A GRANT APPLICATION

[02:50:04]

WE'RE ASSUMING THAT WE WILL BE AWARDED THAT GRANT AND THAT WILL, BY THE END OF THE LONG-RANGE FINANCIAL FORECASTS COSTS ABOUT $500,000 ANNUALLY.

SO WE'VE INCLUDED ALL OF THOSE IN THIS FORECAST.

>> SO IF YOU LOOK AT IT, THE COURT IS SPENDING A LOT.

THESE ARE JUST THE INCREASED COST.

DOES THIS BASELINE AMOUNT IS IN THE FORECAST? BUT IF SHE WERE TO REVISE THIS SLIDE TO TELL YOU WHAT YOU'RE SPENDING IN TOTAL ON COURT APPOINTED ATTORNEYS, IT WOULD BE, I'M ESTIMATING OVER $20 MILLION.

>> OKAY. WE'VE INCLUDED THE COUNTY'S CONTRIBUTION TO THE ALAMO PROJECT, WHICH IS $20 MILLION OVER FOUR YEARS.

WE'VE INCLUDED AT PER COURT'S DIRECTION, FUNDING FOR 50 PATROL OFFICERS, FUNDED IN CONTINGENCIES AND THEY WILL BE PHASED IN OVER THE FISCAL YEAR.

ANNUAL COST OF $4.1 MILLION.

WE'VE INCLUDED THE MAINTENANCE AGREEMENT FOR THE BODY CAMERAS, $2.5 MILLION, AND WE'RE ASSUMING THAT THE NEW PROBATE COURT BILL WILL NOT BE VETOED.

AND SO WE'VE INCLUDED THAT IN THE ROOF AND THAT IS $1.3 MILLION.

WE'VE INCLUDED THE 12 PATROL POSITIONS AT THE COMMISSIONERS COURT AUTHORIZED MIDYEAR.

WE'VE INCLUDED THE GENERAL FUND FULLY SUPPORTS THE COMMUNITY INFRASTRUCTURE AND ECONOMIC DEVELOPMENT FUND.

AND SO WE'VE INCLUDED FUNDING FOR THAT AND WE'VE ALSO INCLUDED FUNDING FOR THE FACILITIES DEPARTMENT, NEW ASSET MANAGEMENT SOFTWARE.

THOSE ARE ALL OF THE KNOWN COSTS THAT WE HAVE INCLUDED.

AND NOW WE'LL MOVE ON TO OTHER COSTS THAT WE ASSUME WE'RE GOING TO HAVE TO INCUR AND WHERE WE HAVE TO REALLY ESTIMATE HOW MUCH WE THINK IT'S GOING TO COST THE COUNTY.

HEALTH INSURANCE. WHEN WE DO THE LONG-RANGE FINANCIAL FORECASTS, WE ALSO PREPARE A SIMILAR FORECASTS FOR HEALTH INSURANCE FUND.

THAT FUND IS ABOUT $70 MILLION.

WE ASSUME ABOUT A 10% INCREASE IN COSTS EACH YEAR.

WE ALSO ASSUME THAT THERE'S NO CHANGE TO THE EXISTING PLANS, EITHER COVERAGE, EMPLOYEE PREMIUMS, OR ANY OF THE OUT-OF-POCKET COSTS FOR EMPLOYEES SUCH AS COPAY'S AND DEDUCTIBLES.

SO WHAT WE'RE ASSUMING IS THAT ALL OF THAT WILL STAY THE SAME.

WE'RE ASSUMING THAT OVER AS DETENTION OFFICER POSITIONS ARE FILLED, THE AMOUNT OF MONEY THAT WE SPEND ON OVERTIME WILL DECREASE.

AND SO THIS YEAR WE'RE ESTIMATING THAT COST WILL BE $18 MILLION.

WE'RE ESTIMATING AS THOSE POSITIONS ARE FILLED, THAT AMOUNT WILL DECREASE.

WE ARE INCLUDING SIX MILLION DOLLARS ANNUALLY FOR NEW AND OR ENHANCE PROGRAMS, WHAT WE CALL PROGRAM CHANGES, WHICH YOU'LL HEAR SEVERAL TIMES OVER THE NEXT FEW MONTHS.

THOSE COSTS ARE RECURRING.

JUST TO GIVE YOU SOME CONTEXT, WE HAVE RECEIVED $46.4 MILLION AND PROGRAM CHANGES TO DATE FOR THIS UPCOMING BUDGET PROCESS.

LAST YEAR, I THINK WE RECEIVED, LET ME SEE, I THINK I HAD THAT DOWN.

THINK WE RECEIVED 34 MILLION AND WE APPROVED SEVEN.

>> SO SPOILER ALERT, COMMISSIONERS.

I'M NOT GOING TO BE RECOMMENDING $46 MILLION WORTH OF PROGRAM CHANGES IN THE PROPOSED BUDGET.

>> WE DON'T HAVE THAT DAY.

>> NOT THAT I KNOW OF.

>> DID YOU ALREADY MENTIONED THE PROBATE COURT OR YOU'RE GOING TO GET THEM.

>> YES.

>> CAN I ASK A QUESTION ABOUT THAT?

>> SURE.

>> I'M SORRY, I MISSED IT. I WAS TRYING TO LOOK AT THESE SLIDES.

SO SINCE THE NEW PROBATE COURT WAS APPROVED, BUT LAST YEAR WE HAD APPROVED TO ASSOCIATE JUDGES.

DOES THAT MEAN THE ASSOCIATE JUDGES ARE GOING TO GO AWAY WITH THE NEW COURT?

>> WE HAVE NOT MADE THAT ASSUMPTION IN THIS FORECAST.

>> SO CAN WE LOOK INTO THAT? SO, IF WE HAVE A THIRD COURT, DOES THE CASELOAD JUSTIFY KEEPING THE ASSOCIATE COURTS LIKE, DO WE HAVE ANY STATISTICS ON HOW THEY CAUGHT UP OR WHAT DOES THAT LOOK LIKE?

>> WE CAN DO SOME ANALYSIS FOR YOU AND WE'LL INCLUDE THAT IN THE BUDGET PROCESS.

>> THANK YOU.

>> YOU'RE WELCOME. LET'S SEE.

WHERE DID I LEAVE? OKAY.

THE COLLECTIVE BARGAINING MARKET STUDY THAT WAS PRESENTED TO COURT IN APRIL 2023.

WHAT WE'RE ASSUMING IN THIS FORECAST IS THAT WHAT THE COURT ENDS UP FUNDING IS WHAT WAS APPROVED AS PART OF THE BAKER TILLY STUDY,

[02:55:01]

WE ASSUME AS I NOTED EARLIER THAT OVERTIME IN THE JAIL WILL DECREASE.

WHEN YOU DO THAT YOU HAVE TO ALSO ASSUME THAT COSTS ASSOCIATED WITH FILLING THOSE POSITIONS.

WE'VE ASSUMED TO THAT AND WE'VE ALSO INCLUDED THE ANNUAL ALLOCATION OF 2.5 MILLION FOR OUTSIDE AGENCIES.

>> IF THE JAIL POPULATION DOES DECREASE, WE HAVE ANOTHER UNANTICIPATED EXPENSE.

>> CORRECT.

>> BASICALLY THOSE TWO LINE ITEMS, THE COST OF SHERIFF STAFFING AND THE COST OF SHERIFF OVER TIME OFFSET.

IF HE FILLS DETENTION POSITIONS THEN WE ASSUMED HE'LL NEED LESS OVERTIME.

IF THAT DOESN'T HAPPEN, ONE OR THE OTHER WILL HAPPEN.

>> WE CONTINUE TO INCLUDE ABOUT ONE MILLION DOLLARS ANNUALLY FOR SENATE BILL 2022, WHICH WAS PASSED IN THE LAST LEGISLATIVE SESSION, WHICH REQUIRES THE COUNTY TO COVER COVID-19 MEDICAL EXPENSES FOR FIRST RESPONDERS.

WE HAVE SOME PRETTY SERIOUS CASES STILL OUT THERE SO WE'RE JUST MAKING SURE WE HAVE THAT ASSUMPTION IN THE FORECAST.

WE ASSUME CIVILIAN VACANCIES WILL BE FILLED AS TURNOVER DECREASES WITH THE BAKER TILLY STUDY, HOPEFULLY WE'RE ABLE TO RECRUIT AND FILL IT.

RIGHT NOW WE HAVE ABOUT THREE MILLION DOLLARS IN COUNTY CIVILIAN TURNOVER.

WE ASSUME THE DEDUCTIBLE FOR LAW ENFORCEMENT LIABILITY.

IN THE EVENT OF A MAJOR CLAIM WE ASSUME ONE MILLION DOLLARS PER INCIDENT.

THEN WE ALSO ARE ASSUMING THAT AT THE END OF ARPA FUNDING THAT THE COURT WOULD WANT TO CONTINUE FUNDING FOR SOME OF THOSE PROJECTS AND SO THAT WOULD BE 13 MILLION IN THE SECOND TO THE LAST YEAR AND THEN 17 MILLION IN THE LAST FISCAL YEAR '27-'28.

>> IN REGARDS TO THAT ARPA FUNDED POSITIONS, IT IS DISCRETIONARY WITH THE COURT AS TO WHETHER OR NOT THEY BECOME PART OF THE LEGACY COSTS, CORRECT, MR. SMITH?

>> YES, SIR.

>> I THINK EVERYBODY TO BE PUT ON NOTICE THAT PROGRAMS POSITIONS COULD BE ELIMINATED AS ARPA MONEY RUNS OUT.

IS THAT A CORRECT STATEMENT?

>> YES, IT IS.

>> OKEY-DOKEY.

>> JUDGE, CAN I FOLLOW UP ON THAT?

>> YEAH.

>> TINA, WITH RESPECT TO THAT, YOUR ASSUMPTION ON THAT 13-17 MILLION IS, CAN YOU GIVE US AN IDEA MAYBE NOT NOW BUT [OVERLAPPING].

I WOULD IMAGINE THE SMART INITIATIVE.

>> COMMISSIONER, WHAT I WANTED TO AVOID WAS PUTTING OUT A LIST THAT CREATES AN EXPECTATION THAT IT WILL BE CONTINUED WHEN IT'S 100% UP TO COMMISSIONER'S COURT.

I'LL BE HAPPY TO PROVIDE YOU WITH THE LIST.

>> I THINK WE JUST NEED A BIG PICTURE OF EVERYTHING WE'VE FUNDED SO THAT THE COURT CAN HAVE A DISCUSSION ABOUT WHAT WE MAY WANT TO CONTINUE AND WHAT NOT.

I THINK GOING INTO ARPA, THAT WHOLE DISCUSSION, I THOUGHT WE TRIED TO PURPOSE IT BY SAYING TO FOLKS, LOOK, THIS MAY NOT BE AVAILABLE IN FOUR OR FIVE YEARS BUT, OF COURSE, PEOPLE START BUILDING OUR PROGRAMS. ANYWAY, NOT FOR TODAY'S PURPOSES, BUT AT SOME POINT IF WE CAN GET A LIST OF THAT SO WE CAN HAVE THAT DISCUSSION AS A BODY. THANK YOU, TINA.

>> YES, SIR.

THIS GRAPH SHOWS WHAT THE FORECASTS LOOKS LIKE.

THE RED LINE IS THE MONEY THAT IS REQUIRED AND THEN THE BLUE LINE IS WHAT IS AVAILABLE.

YOU SEE THOSE LINES CROSS IN '26-'27, THAT REPRESENTS ABOUT A $39 MILLION DEFICIT AND THEN THAT GROWS TO ABOUT 89 MILLION IN THE LAST YEAR, FISCAL YEAR '27-'28.

>> TINA, IF WE WERE ADVISING THE COURT IN THE UPCOMING BUDGET TO START PLANNING FOR AND REDUCING THAT POTENTIAL FUTURE SHORTFALL, WHAT WOULD BE THE ANNUAL AMOUNT THAT WE WOULD NEED TO CHANGE YOUR ASSUMPTIONS OR THE ANNUAL AMOUNT OF INCREASE REVENUE BECAUSE IT CAN BE A COMBINATION THAT WOULD HELP FIX THAT?

>> IT'S ABOUT A $20 MILLION PER YEAR, ABOUT.

>> SAY THAT AGAIN?

>> ABOUT $20 MILLION PER YEAR.

>> $20 MILLION WHAT?

>> IN EITHER CUTS AND OR REVENUE ENHANCEMENTS.

>> CUTS NOT TO THE CURRENT BUDGET BUT TO THE LIST OF ASSUMED EXPENDITURE SHE MADE OR 20 MILLION IN THE INCREASE REVENUE.

>> DO YOU GET THAT, COMMISSIONER RODRIGUEZ?

>> THAT ONE MORE TIME, PLEASE?

>> IF YOU WANT TO FIX THIS GRAPH.

[03:00:03]

>> THE TRADE LINE?

>> A, I WOULD RECOMMEND YOU START AS SOON AS POSSIBLE BECAUSE EVERY YEAR YOU WAIT, IT GETS HARDER.

THE AMOUNT ANNUALLY WE ARE ESTIMATING BASED ON THOSE PAGES OF ASSUMPTIONS THAT TINA JUST LAID OUT WOULD BE REDUCE THOSE ASSUMPTIONS BY 20 MILLION, THE COST OF THOSE ASSUMPTIONS, REDUCE SOME EXPENDITURE BY 20 MILLION, OR IDENTIFY 20 MILLION IN NEW REVENUE THAT WE HAVE NOT ESTIMATED.

>> THIS IS ASSUMING ON THE REVENUE SIDE, IS IT ABOUT A 4% GROWTH RATE OR?

>> 5.9% FOR NEXT FISCAL YEAR AND THEN 4% THEREAFTER.

LAST YEAR WE GREW BY 7.1%.

WE'RE ESTIMATING 5.9, WHICH IS A 1.2% DECREASE.

[LAUGHTER] WE'RE ESTIMATING IT'S GOING TO GO DOWN.

>> COMMISSIONER RODRIGUEZ, YOU'LL FIND THE MONEY? [LAUGHTER]

>> I'LL TAKE A LOOK AROUND THE BUILDING, JUDGE.

>> ALSO, MR. SMITH, WHAT ABOUT IF THIS COURT WANTS TO GIVE A TAX BREAK TO THE SENIORS? AND OBVIOUSLY THE PROPERTY TAX BILL STILL HASN'T BEEN RESOLVED IN AUSTIN BUT HAVE WE FIGURED THAT IN TOO AS TO REVENUE?

>> WE DID NOT ESTIMATE ANY DECREASE.

WE ESTIMATED THE CURRENT TAX RATE REMAINS, YOUR CURRENT MAXIMUM HOMESTEAD EXEMPTION REMAINS, AND YOUR CURRENT SENIOR CITIZEN TAX FREEZE REMAINS.

>> THE TAX BILLS THAT ARE CURRENTLY BEING ARGUED WILL HAVE A SIGNIFICANT IMPACT.

>> BUT WE DID A HOME EXEMPTION LAST YEAR, DO WE NOT? WE DID.

>> YEAH, BUT I THINK ONE OF THE VERSIONS OF THE BILL IS TO INCREASE THE EXEMPTIONS, ISN'T IT?

>> I THOUGHT IT WAS FOR SCHOOL TAXES BUT I COULD BE WRONG, JUDGE.

>> I LEAVE THAT TO AUSTIN.

>> BUT THEY'RE WORKING HARD ON IT RIGHT NOW, SO WHO KNOWS?

>> I WILL LEAVE THAT ALONE.

LET'S MOVE ON. GO AHEAD, MS. SMITH, LET'S WRAP IT UP.

>> JUST A QUICK UPDATE ON WHERE WE ARE WITH THE UPCOMING BUDGET, FISCAL YEAR '23-'24.

WE'VE RECEIVED MAJORITY OF THE PROGRAM CHANGES.

THOSE ARE OUR NEW POSITIONS, POSITION MODIFICATIONS, AND OR SALARY ADJUSTMENTS OR NEW PROGRAMS. LIKE I NOTED EARLIER, WE RECEIVED ABOUT $46.4 MILLION IN PROGRAM CHANGE REQUESTS.

THAT'S THE HIGHEST AMOUNT THAT WE'VE RECEIVED IN THE LAST FIVE YEARS SINCE I'VE BEEN HERE.

AGAIN, JUST TO GIVE YOU SOME CONTEXT HERE, LAST YEAR THE COURT APPROVED SEVEN MILLION DOLLARS OF 37 MILLION IN PROGRAM CHANGE REQUESTS AND SO WHAT WE HAVE ASSUMED IN OUR FORECAST IS SIX MILLION OF 46.4 MILLION.

SO WE'RE GOING TO NEED TO WORK ON THAT.

>> IN THE INTEREST OF BREVITY, THE NEXT FEW SLIDES LIST OUT AT A HIGH LEVEL WHAT EACH DEPARTMENT HAS SUBMITTED TO US AS REQUEST.

WE'LL ALLOW YOU TO GO THROUGH THOSE YOURSELF AND ASK US ANY QUESTIONS.

BUT WE'RE JUST NOW STARTING TO EVALUATE TO REQUEST OURSELVES.

>> THE NEXT FEW SLIDES SHOW ADDED POSITIONS, DELETED POSITIONS, RECLASSIFICATIONS, AND OTHER REQUESTS AND THE COST OF THE REQUESTS BY OFFICE OR DEPARTMENT.

I'LL JUST GO THROUGH THOSE QUICKLY AND THAT IS THE CONCLUSION OF THE PRESENTATION.

>> TINA, WHAT ABOUT THE ISSUE THAT ON THE PAY STUDY, THE ISSUE OF COMPRESSION, AND THE FACT THAT THERE ARE SOME INEQUITIES AND I THINK THE COURT HAS MADE A COMMITMENT TO FIX THAT AT WHATEVER DEPARTMENTS, SO WE DON'T HAVE PROJECTION ON THAT YET?

>> WE HAVE NOT. WE DO NOT HAVE A PROJECTION ON THAT AND WE HAVE NOT INCLUDED THAT IN THIS FORECAST.

>> DO WE HAVE AN IDEA WHEN WE CAN GET SOME FEEDBACK FROM YOU ALL ON THAT ISSUE AS WE GO INTO THE NEW BUDGET YEAR? BUT I WOULD LIKE TO SEE THOSE ADJUSTMENTS MADE AS SOON AS POSSIBLE.

>> YES, SIR.

>> THERE'S MORE EXPENSES TO COME.

>> JUDGE.

>> GO AHEAD.

>> JUST QUICKLY, I DON'T HAVE ANY QUESTIONS NOW.

I KNOW THAT THE BUDGET PROCESS IS ONGOING AND WE'RE GOING TO HAVE TO MAKE SOME VERY TOUGH DECISIONS WITH RESPECT TO PRIORITIES AND I LOOK FORWARD TO THAT CONVERSATION.

WHAT I WANT TO DO IS THANK IN ADVANCE THE BUDGET TEAM BECAUSE AS WE TAKE OUR BREAK COMING UP HERE IN JULY, THEY ARE HARD AT WORK.

TINA, TANYA, THE REST OF THE TEAM, WE KNOW YOU'RE GOING TO COME UP WITH SOME GREAT RECOMMENDATIONS FOR A PROPOSED BUDGET BUT THANK YOU FOR YOUR WORK ON THAT AND WE LOOK FORWARD TO, I KNOW WE'RE GOING TO HAVE SOME WORK SESSIONS WHEN WE COME BACK IN AUGUST ON WHERE THE BUDGET STANDS.

BUT I THINK IT'D BE A TIGHT BUDGET.

WE'RE GOING TO HAVE TO MAKE SOME TOUGH DECISIONS BUT THANK YOU FOR YOUR WORK.

>> THANK YOU.

>> COMMISSIONER CALVERT, DO YOU HAVE ANY QUESTIONS OR COMMENTS?

[03:05:05]

>> NOPE, THANK YOU.

>> ARE WE DONE?

>> THANK YOU.

>> IS THERE A MOTION TO ADJOURN?

>> JUDGE, IF I COULD MOVE TO ADJOURN IN HONOR OF IRENE BALDRIGE, WHO WAS A LONG TIME LEON VALLEY CITY COUNCIL WOMAN, AND ALSO SERVED AS MAYOR OF LEON VALLEY, WHO PASSED AWAY A COUPLE OF WEEKS AGO.

SO I'D MAKE A MOTION TO ADJOURN IN HER NAME.

>> I WOULD LIKE TO JOIN THAT MOTION WITH YOU.

COMMISSIONER CLAY-FLORES, DID YOU HAVE ANY?

>> NO, I DON'T. NOT TODAY.

>> COMMISSIONER CALVERT? I DON'T HAVE ANY.

IS THERE A SECOND ON THE MOTION TO ADJOURN?

>> SECOND.

>> SECOND BY COMMISSIONER CLAY-FLORES.

ALL THOSE IN FAVOR SIGNIFICANT BY SAYING AYE.

ANY OBJECTIONS? MEETING ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.