Mar 27, 2024 Audit and Finance Committee

[CALL TO ORDER]

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GOOD MORNING.

IT IS 9:30 AM ON MARCH 27TH, 2024.

MY NAME IS ALISON AL ALTER, AND I'M CHAIR OF THE AUDIT AND FINANCE COMMITTEE.

AND I'LL CALL THIS MEETING TO ORDER.

UM, I'M JOINED HERE ON THE DAAS BY MAYOR PROAM POOL AND COUNCIL MEMBER RYAN ALTER.

UM, AND I BELIEVE WILL BE JOINED BY AT LEAST ONE MORE, UM, COMMITTEE MEMBER BY THE TIME THAT WE ARE DONE.

WE HAVE A, A BIG AGENDA TODAY, SO I'M GONNA GET MOVING.

IT'S MY UNDERSTANDING THAT WE DO NOT HAVE ANY CITIZEN COMMUNICATION, IS THAT CORRECT? THAT'S CORRECT.

GREAT, THANK YOU.

UM, SO

[1. Approve the minutes of the Audit and Finance Committee meeting of January 24, 2024.]

SECOND IS BY MAYOR PROTE POOL.

UM, WITH NO OBJECTIONS, THE MINUTES WILL BE ADOPTED.

UM, SO

[2. Update regarding the results from the Animal Service Audit that was presented in September 2023.]

UM, AND UNDERSTAND THAT DIRECTOR BLAND WILL BE PRESENTING TOGETHER WITH MS. HAYDEN.

HOWARD, GOOD MORNING.

I AM STEPHANIE HAYDEN HOWARD, ASSISTANT CITY MANAGER.

THANK YOU ALL FOR THE OPPORTUNITY TO BE HERE THIS MORNING.

UH, WE WANTED TO, UM, SPEND JUST A LITTLE BIT OF TIME TO PROVIDE AN UPDATE, UM, FOR THE AUDIT THAT WAS PRESENTED HERE ON SEPTEMBER 27TH.

IN JULY, WE HIRED DEVIN DESAI TO ASSIST US WITH THE AUDIT.

THAT DID COME OUT IN SEPTEMBER.

ON THE 27TH, DEVIN WORKED WITH THE CITY MANAGER'S OFFICE.

HE WORKED WITH ANIMAL SER, ANIMAL SERVICES STAFF, ELECTED OFFICIALS, AND STAKEHOLDERS.

ON JANUARY 30TH, WE CAME TO COUNCIL AND WE PRESENTED, UM, A REVIEW OF THE RECOMMENDATIONS FOR CODE CHANGE AS WELL AS SOME ADDITIONAL ITEMS THAT WE FELT LIKE WOULD MOVE US TO A BETTER PLACE AS A SHELTER.

WE ARE GRATEFUL FOR THE WORK THAT DEVIN DID TO ASSIST US, AND WE WANT TO WISH HIM WELL IN HIS NEW ROLE.

WE HAVE BEEN WORKING WITH BUILDING SERVICES AND IMPLEMENTED SOME ADDITIONAL, UM, AREAS TO ENSURE THE BUILDING IS CLEANED INSIDE AND OUT.

UM, WE PREPARING FOR THE STRATEGIC PLAN AND THE CONVENING.

THIS PROCESS FOR THE STRATEGIC PLAN AND THE CONVENING WITH THE STAKEHOLDERS.

WE WILL BE USING OUR OWN STAFF FROM, FROM THE CONTINUOUS IMPROVEMENT TEAM FROM OUR FINANCIAL SERVICES OFFICE UNDER THE LEADERSHIP OF AUDREY MONTHS.

AUDREY HAS ALREADY DONE SOME WORK FOR US AT THE ANIMAL CENTER, AND SO THIS WILL JUST BE BUILDING, BUT SHE WILL NOT DO THIS WORK ALONE.

WE WILL HAVE A THIRD PARTY VENDOR THAT WILL ASSIST HER.

AND SO THE THIRD PARTY VENDOR WILL FOCUS PRIMARILY ON THE EXTERNAL STAKEHOLDERS, AND AUDREY WILL FOCUS ON THE INTERNAL, UM, STAFF AS WELL.

AT THIS TIME, I'LL TURN IT OVER TO DON AND HE CAN SHARE SOME ADDITIONAL INFORMATION ABOUT THE RECOMMENDATIONS.

THANK YOU.

GOOD MORNING COMMITTEE MEMBERS, DON BLAND, CHIEF ANIMAL SERVICES OFFICER.

UH, ON THE AUDIT, THERE WAS SIX RECOMMENDATIONS FOR THE UPDATES, UH, ON RECOMMENDATION NUMBER ONE.

UM, DURING, AS, AS A CM HAS JUST REPORTED ON OUR, UM, FEBRUARY 1ST, THE COUNCIL DID APPROVE AN ORDINANCE CHANGED, UH, TO CHANGE SOME OF THE IMPOUNDMENT LANGUAGES, ADD REQUIREMENTS FOR PUBLIC SAFETY AND CLARIFY SOME DEFINITIONS FOR US.

UH, CURRENTLY THE CITY REAL ESTATE DEPARTMENT IS WORKING TO IDENTIFY ANY CITY OWNED PROPERTY OR ANY PROPERTY AVAILABLE TO PURCHASE THAT WOULD SERVE AS AN ADDITIONAL ADOPTION SITE AND OR SHELTER.

AND A SO HAS BEGUN WORKING WITH A NATIONAL SHELTER PLANNER, UH, TO NEGOTIATE A CONTRACT FOR A SITE ASSESSMENT WITH THOSE NEEDS.

UH, ALL THOSE RECOMMENDATIONS THAT YOU, THE COUNCIL APPROVED ON FEBRUARY 1ST, UH, ONE OF THEM WAS TO ADOPT A NEW BITE SCALE.

UH, WE CURRENTLY USED A THREE PART BYTE SCALE, AND WE'RE TAKING, UH, OUR LEVEL TO THE NATIONAL DUNBAR SCALE, WHICH IS A SIX LEVEL SCALE THAT IS NATIONALLY USED AND, AND

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UH, IT ALSO, UH, CLARIFIED THE LIVE OUTCOME RATE, UH, THAT IT INCLUDED ALL ANIMALS EXCEPT FOR WILDLIFE, BECAUSE THAT DEFINITION WAS KIND OF UNCLEAR.

ALSO, WE, UH, DID A CODE CLEANUP TO EXPAND THE IMPOUNDMENT TO INCLUDE ANIMALS THAT ARE FOSTERED BY THE FINDER TO ASSIST US WITH OUR SPACE ISSUES.

AN UPDATE ON RECOMMENDATION NUMBER TWO, AS YOU HEARD JUST THEN, UH, CITY MANAGER'S OFFICE IS WORKING WITH CITY STAFF, A THIRD PARTY VENDOR AND STAKEHOLDERS TO DEVELOP A STRATEGIC PLAN.

THE CITY STAFF FROM THE CONTINUOUS IMPROVEMENT TEAM FROM FINANCIAL SERVICES WILL ASSIST WITH THIS.

AN UPDATE ON AUDIT ITEM NUMBER THREE.

UH, A SO LEADERSHIP HAS BEEN REVIEWING ALL OF OUR PROTOCOLS AND MAKING NECESSARY, UH, CHANGES.

SOME OF THOSE INCLUDE, UH, TO BE IN COMPLIANCE WITH, UH, STATE LAW AND TO MITIGATE THE RISK OF DISEASE AND SPREAD OF HARM TO ANIMALS.

UH, WE NO LONGER USE, UH, HOUSING ANIMALS IN TEMPORARY CRATES.

UM, WE ALSO ARE REVIEWING OUR PROTOCOLS FOR OUR SPECIFICALLY ANIMAL CARE UNIT, UH, TO DETERMINE WHERE IMPROVEMENTS CAN BE MADE IN THEIR CLEANING SOPS OR ANY, UH, LOOK AT DIFFERENT CHEMICALS.

ALL OF THE NECESSARY, UH, STEPS THAT WE NEED.

AND BUILDING SERVICES HAS BEEN HELPING US WITH OUR SHELTER CLEANING AS WELL.

AND WE'LL GET INTO THAT IN ONE OF THE OTHER SLIDES.

RECENTLY, UH, BUILDING SERVICES HAS, HAS BEEN DOING A, A PHENOMENAL JOB, AND THEY HAVE A LONG LIST OF THINGS THAT THEY'VE WORKED ON, BUT I'M JUST GONNA HIT A FEW OF THE HIGHLIGHTS REAL QUICK.

UH, THEY LOOKED AT OUR AMBIENT AIR TEMPERATURE FOR, UH, THE KENNELS RUNS, AND THEY HIRED A CONTRACTOR TO COME IN AND DO AN OUTSIDE EVALUATION, AND THEY RECEIVED THAT REPORT AT THE END OF JANUARY.

THEY ARE WORKING ON QUOTES CURRENTLY, AND ONCE THE FUNDING IS IDENTIFIED AND THE DO'S CREATED, THEY WILL BEGIN THAT WORK, UH, THIS SPRING TO MAKE THOSE IMPROVEMENTS ON OUR GROUNDS MAINTENANCE INSTEAD OF TWICE MONTHLY.

THEY'VE BEEN COMING FOUR TIMES A MONTH NOW.

AND ONE OF THE THINGS THAT ALL THE STORM DEBRIS THAT WAS, UH, FROM THE LAST ICE STORM, THEY HAD THAT REMOVED IN OCTOBER OF LAST YEAR AS WELL.

BUT AUDIT ALSO TALKED ABOUT, UH, THE BIRDS AND THE NESTING, AND THEY ARE WORKING WITH THEIR CONTRACTOR AND ALL OF THE, THE PEST CONTROL VENDOR AND, UH, DETERRENCE WILL BE INSTALLED AND ALL THAT WILL BE DONE BY SUMMER.

THIS SUMMER, UH, IN, IN THE AIR VENTS, THEY ARE STEAM CLEANING ALL OF OUR AIR VENTS AND MAKING SURE ALL OF THOSE ARE ON A, A, A SCHEDULE AS WELL.

UH, THE PHARMACY'S SAFE WHILE IT'S IN A LOCKED ROOM, IT WASN'T SECURED TO THE FLOOR, SO THEY'VE TAKEN CARE OF THAT AS WELL.

AND THEY ARE ALSO WORKING, UH, ON A PREFABRICATED BUILDING FOR US TO HOUSE SMALL ANIMALS IN, SMALL DOGS IN TO GET THEM OUT OF THE CAT KENNELS ON AUDIT ITEM NUMBER FOUR.

UH, A SO STAFF HOLD REGULAR MEETINGS TO ENSURE THAT ALL OUR STAFF ARE AWARE OF THE PROCESSES IN THEIR WORK UNITS.

UH, WE ALSO HOLD SPECIFIC MEETINGS FOR ALL STAFF TRAININGS, SUCH AS WE JUST DID BIKE PREVENTION.

WE'LL BE DOING, UH, DUNBAR SCALE TRAINING, UH, IN, ON TOP OF OUR REGULAR QUARTERLY STAFF MEETINGS.

UH, ALSO A SO HOLDS WORKSHOPS FOR OUR VOLUNTEERS AS WELL.

WE HELD, UH, OUR BIKE PREVENTION, UH, WORKSHOP FOR ALL THE VOLUNTEERS TO BE ABLE TO PARTICIPATE IN AS WELL.

AND SOME OF THE VOLUNTEERS HAVE, UH, EXPRESSED INTEREST IN THE CITY'S BUDGET PROCESSING WITH THE ANIMAL SHELTER.

AND SO WE'LL BE HOLDING ONE OF THOSE AND KIND OF WALKING THEM THROUGH THAT AS WELL.

ON, UH, AUDIT ITEM NUMBER FIVE.

UH, THE CITY MANAGER'S OFFICE, AS YOU HEARD, IS HIRING AN OUTSIDE CONSULTANT TO DO A SERIES OF STAKEHOLDER MEETINGS.

UH, A SO IS HOLDING MEETINGS WITH THE MUNICIPAL, UH, SHELTER DIRECTORS IN OUR REGION, AND WE ALSO HOLD QUARTERLY VOLUNTEER MEETINGS AND SPECIFIC WORKSHOPS ON AUDIT ITEM NUMBER SIX.

UH, WE WERE LACKING IN SUPPORT SERVICES IN MANY AREAS, AND ONE OF THOSE WAS IT SUPPORT.

UH, A SO HAS BEEN DEPENDENT ON AUSTIN PUBLIC HEALTH AND CTM TO PROVIDE OUR DATA SUPPORT AND CREATE OUR REPORTS FOR US.

AND COUNCIL IS VERY GENEROUS IN, UH, ALLOWING US AN IT POSITION THIS BUDGET YEAR, AND WE HAVE HIRED SOMEONE FOR THAT POSITION.

UH, THIS POSITION IS GONNA BE CRUCIAL IN, UH, GENERATING OUR REPORTS AND MAKING SURE OUR DATA THAT GOES INTO THE, UH, PUBLIC PORTALS IS, UH, ACCURATE AND CURRENT.

AND WE HOPE, UH, THEY, THEY STARTED ACTUALLY ON MONDAY, SO THEY'RE IN TRAINING RIGHT NOW, AND, UH, WE'RE IN A FEW WEEKS WE'LL BE ABLE TO HAVE THEM OVER AND START WORKING, AND WE'RE LOOKING FORWARD TO HAVING THAT OPTION.

THAT'S

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DOES ANYONE HAVE ANY QUESTIONS FOR ME TO SEE? I'M HAPPY TO SEE, UM, SO MUCH PROGRESS.

I WANTED TO SEE IF MY PRE TEMPLE POOL WANTED TO SAY ANYTHING.

I KNOW YOU INITIATED, UM, THE AUDIT IN THE FIRST PLACE IF YOU WANTED TO ADD ANYTHING.

I JUST REALLY APPRECIATE THE MOVEMENT AND THE PROGRESS AND THE REPORTING BACK, AND HOPE WE CAN CONTINUE TO GET THE REPORTS AND EVERYTHING.

I KNOW THAT, UM, OUR, UH, FOLKS IN THE COMMUNITY ARE AVIDLY ACTIVE, AND SO IT'S IMPORTANT TO KEEP THE, THE CLEAR LINES OF COMMUNICATION OPEN AND ACCURATE INFORMATION TO CONTINUE TO BE PUBLISHED.

I, I WANT TO GIVE A SHOUT OUT TO DEVIN DESAI AND TIP OF THE HAT, IF I HAD ONE ON MY HEAD.

UH, THANK HIM SO MUCH FOR WADING INTO THIS REALLY, UM, FRAUGHT ARENA, UM, AND MY FINGERS CROSSED AND MY HEART HOPEFUL, UH, FOR CONTINUED PROGRESS IN THE FUTURE.

AND THANK YOU TO STEPHANIE HAYDEN HOWARD FOR HER ABLE LEADERSHIP, WHICH I ALSO HOPE WILL CONTINUE IN THE FUTURE.

THANK YOU SO MUCH, DIRECTOR.

THANK YOU COLLEAGUES.

ARE THERE ANY OTHER COMMENTS OR QUESTIONS? UM, WELL THANK YOU DIRECTOR BLAND.

THANK YOU.

A CM HAYDEN HOWARD.

I'M GLAD TO SEE THAT WE ARE MAKING, UM, SOME PROGRESS.

UM, THE COMMUNITY IS REALLY ASKING FOR IT AND, AND I HOPE THAT WE'LL BE ABLE, UM, TO DELIVER ON THESE PROMISES.

SO THANK YOU.

UM,

[3. The Citywide Ethics Assessment which assessed the effectiveness of the City's Ethics and Compliance program]

AND WE HAVE PATRICK JOHNSON.

GOOD MORNING.

MORNING, RIGHT.

UH, YEAH.

I AM PATRICK JOHNSON, ASSISTANT CITY AUDITOR.

PLEASURE TO BE HERE.

TODAY I'M PRESENTING THE REAL RESULTS OF AN ASSESSMENT OF THE CITY ETHICS PROGRAM.

WE HIRED AN EXTERNAL EXPERT, THE ETHICS AND COMPLIANCE INITIATIVE, OR ECI TO CONDUCT THIS WORK.

AND REALLY, YOU KNOW, THE FIRST STEP IS, WELL, WHAT IS ETHICS AND WHY IS IT IMPORTANT? UM, ETHICS IS A CORNERSTONE OF INTEGRITY.

IT PROVIDES A FRAMEWORK TO HELP GUIDE BEHAVIOR.

UH, BUT REALLY WHAT DOES THAT MEAN IN TERMS OF HOW THE CITY OPERATES AND PROVIDES SERVICES TO ITS RESIDENTS? UM, AND EVERYONE WHO, WHO ACCESSES OUR SERVICES, A STRONG ETHICS CAN HELP CITY OFFICIALS AND REALLY EVERY EMPLOYEE MAKE BETTER DECISIONS EACH DAY IN THE PUBLIC INTEREST, UH, STRONG ETHICAL ENVIRONMENT, UM, PROMOTES VALUES SUCH AS HONESTY, FAIRNESS, TRUST, RESPECT, AND ACCOUNTABILITY.

UH, MOVING TO THE ASSESSMENT OF AUSTIN'S PROGRAM, ECI IS A RECOGNIZED EXPERT IN ETHICS AND COMPLIANCE BEST PRACTICES, AND THEY HELP ORGANIZATIONS IDENTIFY HOW, HOW TO BUILD AND SUSTAIN STRONG ETHICS PROGRAMS. ECI FOLLOWED A THREE PHASED APPROACH, AS YOU SEE HERE.

UH, THE FIRST PHASE WAS AN ETHICS AND COMPLIANCE ASSESSMENT, UH, WHICH WAS REALLY TWO, TWO SEPARATE SURVEYS OF TOP CITY STAFF AND ETHICS AND COMPLIANCE STAFF.

UH, THIS REALLY SERVED AS A SELF-ASSESSMENT OF AUSTIN'S ETHICS PROGRAM.

SECOND WAS AN ETHICS, UH, CULTURE SURVEY, WHICH WAS A SURVEY OF ALL CITY STAFF.

AND THIRD, UH, THEY CONDUCTED INTERVIEWS WITH KEY CITY STAFF AND THEN PULLED TOGETHER AN ANALYSIS OF ALL THREE PHASES.

AND THIS ALL RESULTED IN A SUMMARY REPORT THAT INCLUDES RECOMMENDATIONS TO ADDRESS IDENTIFIED GAPS IN THE CITY'S PROGRAM.

UH, THE REPORT IDENTIFIED REALLY HIGH LEVEL FINDINGS, INCLUDING TRUST ISSUES WITHIN THE CITY, AND THEY IDENTIFIED MULTIPLE FRAGMENTED PROCESSES REALLY RELATED TO THE ETHICS PROGRAM.

UH, KEY FOCUS AREAS INCLUDED, UH, CITY VALUES, CONSISTENCY AND ACCOUNTABILITY, AND REALLY EXPANDING THE REACH OF THE CITY ETHICS PROGRAM.

UH, WE INCLUDED A COMPANION REPORT TO PROVIDE SOME CONTEXT AND TO CAPTURE MANAGEMENT'S RESPONSE TO THE RECOMMENDATIONS.

REALLY, THE MAIN ISSUE WE SAW WAS A CLEAR SPLIT IN PERSPECTIVES ABOUT HOW WELL THE CITY IS DOING RELATED TO ETHICS.

JUST ACROSS THE BOARD STAFF PERSPECTIVES WERE CONSISTENTLY LOWER THAN EXECUTIVE PERSPECTIVES, AND THIS WAS ESPECIALLY TRUE RELATED TO TRUST.

UH, QUESTIONS AND TOPICS.

WE NOTED THREE SPECIFIC EMPLOYEE CONCERNS ABOUT REPORTING ETHICS ISSUES, WHICH WERE IDENTIFIED THROUGH ECIS WORK.

UH, FIRST STAFF THOUGHT THE CORRECTIVE ACTION WOULD NOT BE TAKEN.

UM, THEY ALSO THOUGHT THE REPORTS WOULD NOT REMAIN ANONYMOUS, AND THEY FEARED RETALIATION.

RETURNING TO THE ISSUE OF KIND OF PERSPECTIVES THAT, THAT PERSPECTIVE ISSUE, UH, CITY LEADERS AND THEIR SELF-ASSESSMENT, UH, ASSESS THE CITY'S ETHICS AND COMPLIANCE PROGRAM AS MORE ROBUST THAN THE ECI ASSESSMENT.

WHAT YOU SEE HERE IS, UH, ECI I'S MATURITY SCALE.

UM, WHERE ONE DENOTES

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UM, CITY MANAGEMENT ASSESSED THE ETHICS PROGRAM AT A 3.8, UM, THAT'S SHOWN BY THE RED ARROW.

THAT MEANS THE ETHICS PROGRAM WOULD BE CONSIDERED EFFECTIVE OR GOOD.

UM, AND ECI I'S ASSESSMENT.

UH, THEIR ASSESSMENT WAS, WE WERE AT ABOUT A 2.4, SO IN BETWEEN THE DEFINING AND ADAPTING LEVELS.

AND WHAT THAT MEANS IS, IS ECI JUST FELT THERE WERE ELEMENTS IN THE CITY'S PROGRAM THAT WERE EITHER MISSING OR, UH, THAT THEY WERE THERE, BUT THEY JUST NEEDED SOME IMPROVEMENT.

ECI ALSO RECOGNIZED THE CITY'S EXPERIENCED, UH, SEVERAL ORGANIZATIONAL CHANGES IN THE LAST YEAR.

UH, THIS OBVIOUSLY INCLUDES AT THE CITY'S SENIOR LEADERSHIP TEAM.

UM, THEY CAUTION SOME RESULTS LIKELY REFLECT EMPLOYEE, UH, PERSPECTIVES THAT HAVE BUILT UP OVER TIME.

AND SO IT MAY NOT FULLY REFLECT, UH, THE CURRENT CITY LEADERSHIP, UH, THAT'S IN PLACE NOW.

UH, MOVING FORWARD, WE KNOW THERE ARE MORE CHANGES COMING.

UM, AND REALLY THIS GIVES THE CITY AN OPPORTUNITY, OPPORTUNITY TO TAKE DECISIVE ACTION TO IMPROVE THE CITY'S PROGRAM AND FOCUS ON BUILDING A STRONG ETHICAL CULTURE.

WHICH BRINGS US TO ECIS RECOMMENDATIONS FOR CITY MANAGEMENT.

UH, MANAGEMENT'S AGREED WITH ALL THESE RECOMMENDATIONS.

UH, REALLY THE FIRST WAS TO CLEARLY IDENTIFY RESPONSIBILITY FOR THE PROGRAM, AND MANAGEMENT HAS ALREADY APPOINTED A CHIEF ETHICS AND COMPLIANCE OFFICER WHO WILL ASSESS WHAT A STRONG ETHICS PROGRAM SHOULD LOOK LIKE IN THE CITY OF AUSTIN.

UH, ECI ALSO RECOMMENDED THE CITY REVISIT ITS CITY VALUES AND FORMALIZE ITS COMPLIANT COMPLIANCE, RISK MANAGEMENT EFFORTS, UM, JUST ACROSS THE CITY, UH, KIND OF FILLING IN KIND OF SOME OF THOSE FRAGMENTED AREAS THAT THEY SAW.

UH, THE NEXT RECOMMENDATION, UH, SEEKS TO ADDRESS THE STAFF CONCERNS I NOTED EARLIER.

UH, THIS WOULD BE TO PROVIDE MORE WAYS FOR EMPLOYEES TO REPORT ISSUES AND TO DO SO ANONYMOUSLY.

UM, THIS RECOMMENDATION ALSO SEEKS TO ALIGN THE CASE MANAGEMENT AND TRACKING FUNCTIONS OF THE SEVERAL CITY GROUPS THAT INVESTIGATE, UH, ETHICS AND INTEGRITY ISSUES.

AND LAST, ECI RECOMMENDS THE CITY PROMOTE ACCOUNTABILITY THROUGH APPROPRIATE AND CONSISTENT OUTCOMES.

ECI ALSO MADE A RECOMMENDATION, OUR OFFICE TO WORK WITH THE NEW CHIEF ETHICS AND COMPLIANCE OFFICER.

UH, WE'VE ALREADY HAD SEVERAL MEETINGS AND SHARED INFORMATION FROM ECIS WORK.

UH, AND ALSO ALL THE RECOMMENDATIONS IN THIS REPORT WILL BE TRACKED VIA OUR PUBLIC, UH, RECOMMENDATIONS DASHBOARD.

UM, IF YOU HAVE ANY QUESTIONS, I'M HAPPY TO ADDRESS THOSE.

THANK YOU, PATRICK.

UM, I WANTED TO SEE IF THE CITY MANAGER'S OFFICE OR OUR COMPLIANCE OFFICER WANTED TO RESPOND.

I KNOW YOU GUYS SOMETHING WORKING.

YEAH.

GOOD MORNING COUNCIL MEMBERS.

ED VAN NEIL, CHIEF FINANCIAL OFFICE HERE, HERE ON BEHALF OF THE CITY MANAGER'S OFFICE.

AND OUR INTERIM, UM, UH, CHIEF ETHICS OFFICER IS HERE, DEVIN DESAI.

SO, UH, MANAGEMENT'S IN FULL SUPPORT OF THESE RECOMMENDATIONS.

WE'RE LOOKING FORWARD TO IMPLEMENTING THEM.

UM, WE ALREADY TOOK ACTION IN FEBRUARY TO BRING ON, UM, UM, UH, DEVIN DESAI AS THAT INTERIM POSITION.

UM, I THINK HE'LL PROBABLY BE IN THAT POSITION FOR AT LEAST A YEAR, AND THEN WE WOULD REEVALUATE IN THE FUTURE, UM, WHERE WE WANT TO GO WITH THAT POSITION, WHETHER OR NOT WE NEED TO MAKE A PERMANENT OR IF WE JUST NEED THE, THE POSITION TEMPORARILY TO GET THESE REFORMS IMPLEMENTED.

SO WE ARE ALREADY WORKING ON THESE REFORMS AND AGAIN, FULLY SUPPORT, UM, ALL OF THE FINDINGS.

THANK YOU.

DID OUR, UM, INTERIM OFFICER WANT TO SPEAK? YOU DON'T HAVE TO.

I JUST GIVE YOU THE OPPORTUNITY.

NO.

OKAY.

THANK YOU.

UM, COLLEAGUES, ANY QUESTIONS OR COMMENTS? UM, MAYOR PRO TEMPLE, UH, I'M FULLY IN SUPPORT.

APPRECIATE THE HARD WORK AND, UH, THE DEPTH TO WHICH YOU GUYS, UH, DUG INTO THE ISSUES.

THANK YOU TO OUR CFO AND OUR NEW INTERIM CHIEF ETHICS OFFICER.

AGAIN, MR. DESAI, AND, UH, LOOK FORWARD TO GOOD WORK IN THIS ARENA GOING FORWARD.

THANK YOU.

COUNCIL MEMBER.

AL, I HAVE TO GET DEVIN, LIKE A, A SASH THAT HAS ALL THE DEPARTMENTS HE'S, HE'S WORKED FOR SO HE CAN MAKE COLLECTION.

I, I'M EXCITED TO SEE YOU IN THIS ROLE.

I, I APPRECIATE YOUR WILLINGNESS TO CONTINUE TO SERVE THE CITY IN MANY FORMS AND FASHIONS.

UH, AND JUST WANT TO REITERATE WHAT MAYOR PROPO SAID.

THANK YOU TO THE MANAGER'S OFFICE FOR TAKING THIS HEAD ON.

UM, AND I'LL JUST CONCLUDE BY SAYING I ALSO APPRECIATE YOU TAKING THIS HEAD ON, UM, READING THE REPORT.

THERE WERE A LOT OF REALLY CONCERNING THINGS IN THERE, AND I DON'T WANT TO, UM, UNDERVALUE THE IMPORTANCE OF TAKING THESE STEPS.

UM, I APPRECIATE THAT, YOU KNOW, THROUGH THE PROCESS OF DOING THIS, AUDIT STEPS HAVE BEEN TAKEN.

UM, BUT WE DO NEED TO SEE THEM THROUGH, UM, CONCLUSION.

UM, AND THERE WILL BE SEVERAL

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UM, AND I HOPE THAT, UM, OUR INTERIM OFFICER WILL HAVE THE EAR OF THE CMOS OFFICE IN ORDER TO BE ABLE, UM, TO MAKE CHANGES.

'CAUSE MANY OF THOSE WILL REQUIRE, UM, SENIOR MANAGEMENT LEANING IN, SUCH AS MAKING SURE THAT THE VALUES ARE PERMEATING, UM, THE ORGANIZATION.

THOSE ARE NOT THINGS THAT JUST THE OFFICER ON HIS OWN CAN MAKE HAPPEN.

UM, SO I THINK, UM, YOU KNOW, IT IS REALLY IMPERATIVE THAT, UM, YOU TAKE AWAY FROM, FROM OUR COMMENTS HERE, THAT WE, WE DO WANT YOU TO LEAN INTO THIS AND THAT WE DO WANT YOU TO MAKE, UM, THIS HAPPEN.

IT'S IMPORTANT FOR THE FUTURE OF OUR ORGANIZATION.

SO THANK YOU.

THANK YOU, MR. JOHNSON.

THANK YOU.

SO OUR NEXT ITEM IS

[4. The Austin Energy Medically Vulnerable Registry Audit which evaluated Austin Energy's registry for the medically vulnerable.]

GOOD MORNING, HENRY.

AND I'M NOT SURE HOW I KNOW HOW TO PRONOUNCE YOUR LAST NAME.

IT'S A KAWA KA KUA.

OKAY.

WELCOME.

UH, GOOD MORNING COUNCIL MEMBERS.

LIKE I SAID, MY NAME IS HENRIK TMA, AND I WAS THE LEAD AUDITOR OVER THIS PROJECT.

THE OBJECTIVE OF THE AUDIT WAS TO DETERMINE IF THE CITY'S MEDICALLY VULNERABLE REGISTRY PROGRAM EFFECTIVELY AND EFFICIENTLY SERVES RESIDENTIAL CUSTOMERS IN NEED TO LESSEN THE IMPACT OF POWER OUTAGES ON AUSTIN ENERGY, CUSTOMERS WITH CRITICAL ILLNESSES OR LIFESAVING MEDICAL EQUIPMENT.

THE CITY OF AUSTIN OFFERS THE MEDICALLY VULNERABLE REGISTRY PROGRAM.

THROUGH THIS PROGRAM, THE CITY PROVIDES ELIGIBLE CUSTOMERS WITH SERVICES INCLUDING ONE-ON-ONE CASE MANAGEMENT.

FOR EXAMPLE, PROGRAM PARTICIPANTS WORK WITH A DESIGNATED AUSTIN ENERGY CASE MANAGER TO DEVELOP PERSONALIZED EMERGENCY BACKUP PLANS.

IF CUSTOMERS ARE HAVING TROUBLE PAYING THEIR UTILITY BILLS, THEIR CASE MANAGER CAN HELP WITH FLEXIBLE PAYMENT PLANS AND OTHER OPTIONS.

CITY STAFF MAY ALSO, MR. KAMA, I JUST WANNA CHECK IF WE'RE SUPPOSED TO HAVE A PRESENTATION.

SUPPOSED TO, BUT THERE'S SOME KIND OF TECHNICAL PROBLEM.

UM, YOU WANNA TAKE ANOTHER ITEMS? LET'S JUST KEEP GOING.

I THINK WE CAN PAUSE.

I THINK YOU CAN KEEP GOING AND IT'S UP TO YOU, MR. KAMA, WHATEVER YOU WANT TO CANCEL.

GO AHEAD.

READY? I THINK WE'VE READ THE AUDIT, SO I THINK WE'RE OKAY, UM, TO MOVE.

AND AS SOON AS YOU CAN GET IT UP, YOU CAN PUT IT UP.

THANK YOU.

UH, THROUGH THIS PROGRAM, UH, THE CITY PROVIDES ELIGIBLE CUSTOMERS WITH SERVICES INCLUDING ONE-ON-ONE CASE MANAGEMENT.

FOR EXAMPLE, UM, PROGRAM PARTICIPANTS WORK WITH A DESIGNATED HOSTING ENERGY CASE, UH, CASE MANAGER TO DEVELOP PERSONALIZED EMERGENCY BACKUP PLANS.

IF CUSTOMERS ARE HAVING TROUBLE PAYING THEIR OTT BILLS, THEIR CASE MANAGER CAN HELP WITH FLEXIBLE PAYMENT PLANS AND OTHER OPTIONS.

CITY STAFF MAY ALSO REFER THE CUSTOMER TO OTHER SOCIAL SERVICE PROVIDERS FOR ADDITIONAL SERVICES.

THE PROGRAM SERVES OVER 250 CUSTOMERS EVERY YEAR, AND IS MANAGED BY AUSTIN ENERGY AND A THIRD PARTY VENDOR.

OUR FIRST FINDING, MANY AUSTIN ENERGY CUSTOMERS ARE NOT ABLE TO ACCESS THE PROGRAM DUE TO A COMPLEX APPLICATION PROCESS.

OVERALL, THE PROGRAM PARTICIPANTS WILL SURVEYED, APPEAR TO BE SATISFIED WITH THE PROGRAM, AND THEY BELIEVE THAT THE PROGRAM MEETS THEIR EXPECTATIONS.

HOWEVER, MANY CUSTOMERS ARE NOT ABLE TO ACCESS THE PROGRAM TO QUALIFY FOR THIS PROGRAM.

AN APPLICANT MUST BE AN AUSTIN ENERGY ACCOUNT HOLDER, OR SOMEONE WHO LIVES IN THE HOME OF AN AUSTIN ENERGY ACCOUNT HOLDER RESIDENCE IN APARTMENT COMPLEXES WITH A MASTER METER.

AND THIS IS WHERE RENTERS PAY THEIR PROPERTY MANAGEMENT FOR THEIR UTILITY BILLS ARE NOT ABLE TO PARTICIPATE IN THE PROGRAM.

AUSTIN ENERGY MANAGEMENT SAID THEY'RE CURRENTLY 92 MASTER METERS, HOWEVER, THEY ARE, THEY ARE NOT ABLE TO DETERMINE HOW MANY RESIDENTS ARE ASSOCIATED WITH EACH OF THESE METERS.

PROGRAM PARTICIPANTS AND OTHER STAKEHOLDERS NOTED THAT THE APPLICATION PROCESS IS INEFFICIENT DUE TO THE FREQUENCY OF RECERTIFICATIONS AND CHALLENGES.

CHALLENGES OBTAINING EFFICIENT SIGNATURE ARE PROGRAM APPLICANT MUST

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THE APPLICATION REQUIRES A PHYSICIAN SIGNATURE.

IN ADDITION PROGRAM, PARTICIPANTS ARE REQUIRED TO CERTIFY PERIODICALLY DEPENDING ON THE MEDICAL CONDITION THAT IS ASSIGNED BY THE PHYSICIAN.

WE SURVEYED A SAMPLE PROGRAM PARTICIPANTS ON THE EXPERIENCES AND PERCEPTIONS RELATED TO THE APPLICATION AND RECERTIFICATION PROCESS.

45 OF THE RESPONDENTS STATED THAT THE PROCESS IS IN IS INEFFICIENT.

IS INEFFICIENT, MAINLY DUE TO THE FREQUENCY OF RECERTIFICATIONS AND THE CHALLENGES IN OBTAINING A PHYSICIAN'S SIGNATURE.

WE ALSO SURVEYED EIGHT OTHER CITIES AND FOUND THAT THE CITY OF AUSTIN REQUIRES PROGRAM PARTICIPANTS TO RECERTIFY MORE OFTEN THAN THE CITIES THAT WE LOOKED AT.

WHILE THE CITY OF AUSTIN IS RE RECERTIFICATION, FREQUENCY RANGES BETWEEN TWO AND 12 MONTHS FOR THE SIX CITIES THAT WE LOOKED AT, RECERTIFICATION FREQUENCY RANGES BETWEEN 12 AND 24 MONTHS.

ONE CITY, AND THIS WAS THIS WAS SACRAMENTAL, OFFERS A LIFETIME ENROLLMENT DEPENDING ON THE MEDICAL CONDITION OF THE PATIENT.

IN FISCAL YEARS 2022 AND 2023, ABOUT 70% OF APPLICATIONS WERE DENIED DUE TO THE APPLICANT'S NOT SUBMITTING THE NECESSARY DOCUMENTATION WITHIN THE REQUIRED TIMEFRAME.

WHILE AN INCOMPLETE APPLICATION DOES NOT NECESSARILY MEAN THAT THE APPLICANT WOULD HAVE BEEN ELIGIBLE IF THEY HAD SUBMITTED ALL PIECES OF THE APPLICATION, THERE IS A SIGNIFICANT NUMBER OF DE DENIALS.

AUSTIN ENERGY NOTED THAT THEY'RE CURRENTLY WORKING ON CHANGES TO THE APPLICATION PROCESS.

THE PROPOSED CHANGES INCLUDE LENGTHENING THE AMOUNT OF TIME BETWEEN CERTIFICATIONS AND INCLUDING A LIFETIME CERTIFICATION OPTION, AS WELL AS ALLOWING A BROADER RANGE OF MEDICAL SERVICE PROVIDERS TO CERTIFY ELIGIBILITY AUSTRALIAN ENERGY MANAGEMENT PLANS TO TAKE THE PROPOSED CHANGES TO CITY COUNCIL IN MAY, 2024.

OUR SECOND FINDING, THE CITY USES A MANUAL PROCESS TO MANAGE APPLICATION AND ELIGIBILITY VERIFICATION.

THIS INCREASES THE RISK THAT THE DATA MAY NOT BE SECURE AND RELIABLE, AND IT ALSO LEADS TO INEFFICIENCIES.

THE PROGRAM APPLICATION PROCESS RELIES MAINLY ON MANUAL METHODS, SUCH AS FAXED AND MAILED, UH, PAPER APPLICATIONS AND OTHER PROGRAM DOCUMENTS.

THIS REQUIRES THE INFORMATION TO BE ENTERED INTO THE SYSTEMS MANUALLY EVERY TIME.

ALSO, PROGRAM INFORMATION IS TRACKED IN MULTIPLE TOOLS THAT DO NOT AUTOMATICALLY SHARE INFORMATION.

ELIGIBILITY VERIFICATION INFORMATION IS MAINLY TRACKED IN THIRD PARTY VENDORS AND CITY SYSTEMS AND DENIAL LETTERS SENT, SENT TO THE APPLICANTS TRACK THROUGH ANOTHER VENDOR SYSTEM.

THE MANUAL PROCESS ALSO PRESENTS SOME OTHER CHALLENGES, INCLUDING RECEIVING INCOMPLETE INFORMATION.

WE RECEIVED.

WE REVIEWED ELIGIBILITY VERIFICATION DOCUMENTS FOR A SAMPLE OF A HUNDRED APPLICANTS AND FOUND REQUIRED INFORMATION MISSING FROM SEVERAL APPLICATIONS.

UH, FOR EXAMPLE, EIGHT APPLICATIONS HAD NO PHYSICIAN SIGNATURE.

24 APPLICATIONS HAD NO M-V-M-V-R CATEGORY, UH, 43 APPLICATIONS HAD NO PATIENT OR ACCOUNT HOLDER SIGNATURES.

AND THESE ARE REQUIRED APPROVING APPLICATIONS THAT WITHOUT A PHYSICIAN SIGNATURE VIOLATES.

THE PROGRAM REGULATIONS AS STATED IN THE CITY CODE AND APPROVING THESE APPLICATIONS IS INEQUITABLE FOR OTHER CUSTOMERS WHO ARE DENIED FROM THE PROGRAM BECAUSE THEY WERE NOT ABLE TO PROVIDE ALL DOCUMENTS.

AUSTIN ENERGY MANAGEMENT SAID AN ONLINE PROGRAM APPLICATION TOOL WILL BE COMPLETED IN SEPTEMBER, 2024.

AS AN ADDITIONAL OBSERVATION, WE NOTED THAT THE CITY OF AUSTIN'S PROGRAM APPEARS TO OFFER MORE SERVICES THAN SIMILAR PROGRAMS THAT WE LOOKED AT IN THE OTHER CITIES.

AS ALREADY STATED, WE, WE SURVEYED A SAMPLE OF SIX OTHER CITIES, CITY PROGRAMS DESIGNED TO ASSIST MEDICALLY VULNERABLE CUSTOMERS DURING PLANNED AND UNPLANNED OUTAGES.

ALL CITIES THAT WE SURVEYED, INCLUDING AUSTIN, NOTIFY PARTICIPANTS OF AN OUTAGE AND GIVE PARTICIPANTS MORE TIME TO PAY THEIR BILLS THROUGH FLEXIBLE PAYING PAYMENT PLANS.

[00:30:01]

UH, WE NOTED IN THIS AUDIT, WE ISSUED TWO RECOMMENDATIONS.

I'M SORRY WE CAN'T SEE THEM HERE, BUT, UH, RECOMMENDATION ONE WAS AIMED AT ENSURING THAT THE PROGRAM IS ACCESSIBLE TO ALL QUALIFYING AUSTIN ENERGY CUSTOMERS WHO MAY NEED THE PROGRAM SERVICES.

AUSTIN ENERGY MANAGEMENT AGREED WITH THIS RECOMMENDATION AND THEIR IMPLEMENTATION TIMELINE IS MAY 30TH, 2024.

RECOMMENDATION TWO IS AIMED AT ENHANCING THE EFFICIENCY OF PROGRAM APPLICATION PROCESS AND ENSURING THAT REQUIRED INFORMATION IS COLLECTED AND IS RETRIEVABLE.

AGAIN, AUSTRALIAN ENERGY MANAGEMENT AGREED WITH THIS RECOMMENDATION.

AND THE IMPLEMENTATION TIMELINE IS SEPTEMBER 30TH, 2024.

THIS CONCLUDES MY PRESENTATION.

WE'D BE HAPPY TO TAKE ANY QUESTIONS THAT YOU HAVE, MR. KAWA, AND, UM, WE APPRECIATE YOU DOING THIS WITH, WITHOUT THE SLIDES.

WE'VE ALL, UM, REVIEWED THE AUDIT BEFORE, SO, AND IT WAS A PRETTY STRAIGHTFORWARD ONE, SO I THINK THAT THAT WORKED OUT OKAY.

I HOPE THAT WE CAN MAKE SURE THAT THOSE SLIDES ARE AVAILABLE, UM, FOR THE PUBLIC IN THE BACKUP IF THEY'RE NOT ALREADY.

UM, DID AUSTIN ENERGY WANT TO COMMENT ON ANYTHING HERE? UH, GOOD MORNING, UH, CHAIR CO-CHAIR AND TO COUNCIL COMMITTEE MEMBERS.

I AM KERRY OVERTON, UH, THE DEPUTY GENERAL MANAGER, CHIEF CUSTOMER OFFICER AT AUSTIN ENERGY.

IN REGARDS TO OUR OPERATIONS OF THE MEDICAL VULNERABLE REGISTRY, THE MVR PROGRAM, UH, WE FOUND, UM, THE AUDITOR'S FINDINGS, UM, ACCEPTABLE AND WE AGREED TO THEM.

THE AUDITOR'S OFFICE IDENTIFIED TWO FINDINGS, AND THEY WERE SURROUNDING IMPROVEMENTS TO THE CERTIFICATION PROCESS AND IMPROVEMENTS TO THE APPLICATION PROCESS, INCLUDING, UM, DEVELOPING AN ONLINE OPTION.

WE AGREE WITH THOSE FINDINGS, AND WE RECOGNIZE THAT THESE ADDITIONS OF TWO IMPROVEMENTS WILL, UH, IMPROVE THE OVERALL IN EXPERIENCE AND THE ENROLLMENT PROCESS.

AS YOU CAN SEE, UH, WE HAVE IMPLEMENTED, UH, A VERY QUICK TURNAROUND ON OUR IMPLEMENTATION OF FIXES TO THE PROGRAMS, AND WE'RE VERY PLEASED THAT WE HAVE A VERY STRONG TEAM THAT HAD BEEN WORKING ON THOSE ITEMS. AND THE AUDITOR HIGHLIGHTED SOME OF THAT WORK THAT WAS GOING.

AND THEN I JUST WANNA ALSO JUST MENTION TO THE AUDITORS, WHILE THEY DO THE WORK AND EVEN TO THEIR LEADER, UH, COREY, YOU DON'T OFTEN FIND IT, BUT THEY ALSO, IN THEIR DISCOVERIES, UM, AND WORKING WITH OUR PEER CITIES INDICATED THAT WE HAVE OFFERED MORE PROGRAMS THAN ANY OTHER PEER CITY.

AND IN FACT, OVERALL, OUR CUSTOMERS WHO PARTICIPATED IN THE PROGRAM WERE SATISFIED THAT WE MET THEIR NEEDS.

I WILL ADDRESS ANY QUESTIONS THAT YOU MIGHT HAVE.

THANK YOU, MR. OVERTON.

THIS IS A REALLY IMPORTANT, UM, PROGRAM, AND I APPRECIATE THE FAST TIMELINE TO ADDRESS, UM, THE SHORTCOMINGS OR THE OPPORTUNITIES, UM, MOVING FORWARD AND BEING ABLE TO DO THAT BEFORE NEXT WINTER, I THINK IS, IS VERY, VERY IMPORTANT.

UM, I DID HAVE A QUESTION.

WE HAVE RECENTLY BEEN ABLE TO EXPAND OUR CAP ENROLLMENT, UM, TREMENDOUSLY WITH SOME DIFFERENT TYPES OF OUTREACH.

UM, AND I WANTED TO KNOW WHAT WE MIGHT LEARN FROM THAT CAP OUTREACH FOR THIS MEDICAL VULNERABLE REGISTRY, UM, ACCESSIBILITY QUESTION.

YEAH.

IN FACT, UH, COUNCIL MEMBER, UH, IF I RECOLLECT, WE ARE, WE'RE DUE TO GIVE A FORMAL RESPONSE, UH, IN JUNE OF THIS, UM, OF THIS YEAR ON TERMS OF OUR CAL OUTREACH.

WE ARE ON TRACK TO CONTINUE TO REACH THE GOALS THAT YOU HAVE PROVIDED FOR US.

THERE ARE SOME CORRELATIONS THAT CAN IMPROVE, UM, IN THIS OUTREACH.

UM, AND AS YOU CAN SEE, AS PART OF THIS IS, UM, REALLY SIMPLIFYING THE PROCESS, UH, ONE OF THE THINGS THAT'S HELPING US RIGHT NOW IS REACHING OUT TO, IN THIS, UH, OTHER ENTITIES.

AND PART OF THAT IS THE SCHOOL DISTRICTS.

SO THE, THAT WORK IS GOING, UM, ALONG PRETTY WELL.

AND SO, UM, MOST OF IT WHERE WE HAVE A LITTLE BIT OF CHALLENGES IS, UH, GETTING ALL OF THE ENTITIES TO DO THE DATA SHARING AND GETTING PAST, UM, YOU KNOW, THE SORT OF THE LEGAL TERMS AND GETTING COMFORTABLE WITH THE HIPAA LAWS AND, UH, THE OTHER REQUIREMENTS AND SHARING THE KIND OF DATA THAT THEY'RE GIVEN TO THE, TO THE CITY.

BUT WE'VE BEEN ABLE TO RE MEET WITH ALL OF THEIR LEADERSHIP.

AND SO YES, THERE IS APPLICATION AND WE BELIEVE WE'LL BE ON TRACK AND WE WILL APPLY ALL OF THOSE LEARNINGS TO WHAT WE'RE DOING IN NVR AS WELL.

AND ARE YOU WORKING

[00:35:01]

THANK YOU.

AND THEN ONE OF THE THINGS THAT WE REALLY EXPERIENCED, YOU KNOW, STARTING WITH STORM YURI WAS A SENSE THAT WE HAD, YOU KNOW, NOT JUST INDIVIDUALS WHO WERE MEDICALLY VULNERABLE IN INDIVIDUAL HOMES OR APARTMENTS, BUT THEN WE ALSO HAD ENTITIES LIKE OUR NURSING HOMES AND OUR ASSISTED LIVING CARE.

AND I KNOW THAT'S NOT COVERED PER SE BY THE MEDICALLY VULNERABLE REGISTRY, BUT HOW ARE WE, UM, ADDRESSING SITUATIONS WHERE WE HAVE MORE CONGREGATE LIVING FOR OUR SENIORS? YEAH, AGAIN, THE, THE MBR PROGRAM IS MOSTLY DESIGNED FOR THOSE INDIVIDUAL CUSTOMERS WHO ARE, UM, IN THEIR HOMES AND CERTAIN AREAS WHERE THE WHOLE ROLE IS TO NOT ONLY EXERCISE THEIR EMERGENCY PLAN, BUT TO GET THEM TO FACILITIES THAT HAVE MORE EMERGENCY EQUIPMENT AND SERVICES AND PERSONNEL THERE.

AND SO, IN THOSE NURSING HOME, IN THE NURSING HOME, THAT WOULD BE THE SAME REQUIREMENT.

UM, AT SOME POINT IN TIME, THOSE PLANS CALLS FOR US TO EVACUATE, UH, THOSE INDIVIDUALS AND MOVE THEM MORE TOWARD HOSPITALS AND OTHER CARE CENTERS THAT CAN PROVIDE THE GREATEST CARE.

BUT, UH, I DO APPRECIATE THAT YOU MENTIONED THAT IN TERMS OF THE STORMS. UM, AND OUR ROLE IS TO MAKE SURE THAT WE'RE COORDINATING WITH THE MANAGEMENT TEAM AND OPERATORS OF THOSE CARE CENTERS, BUT DO WE NOW HAVE A MAP IN THE PHONE TREE AND ALL OF THAT INFORMATION SOMEWHERE FOR THESE VARIOUS FACILITIES IN OUR COMMUNITY? UH, THE DETAILS OF HOW THAT'S MAPPED OUT, I I WOULD HAVE TO, UM, REFER THAT MORE TO OUR CHIEF OPERATING OFFICER, BUT WE DO, UM, HAVE A BETTER SENSE OF WHERE THESE ENTITIES ARE AND AS WE CALL THEM, YOU KNOW, OUR, UM, YOU KNOW, THE CRITICALITY OF THEIR LOAD.

UM, THAT WORK HAS BEEN ONGOING AND MY UNDERSTANDING THAT I COULD REPORT TO YOU THAT I, I UNDERSTAND HAS BEEN SUCCESSFUL.

OKAY.

UH, THE STATUS, I DON'T KNOW AT THIS TIME, SO IF YOU COULD MAYBE JUST FOLLOW UP WITH US WITH A BRIEF UPDATE ON HOW YOU'RE CONNECTING.

UM, OKAY.

WE WILL, WITH THOSE FACILITIES.

I KNOW IT, AGAIN, IT'S SEPARATE, BUT RELATED, BUT I, I THINK IT'S VERY MUCH IMPORTANT FOR OUR EMERGENCY RESPONSE AND WE, WE LEARNED THE HARD WAY THAT WE DIDN'T HAVE THOSE SYSTEMS SET UP.

SO, UM, I DO WANNA MAKE SURE THAT, THAT WE CONTINUE TO BUILD OUT THAT PREPAREDNESS.

I WANNA ACKNOWLEDGE THAT COUNCIL MEMBER FUENTES HAS JOINED US ON THE DAIS, AND I'LL RECOGNIZE, UH, VICE CHAIR POOL.

I JUST HAD A QUICK QUESTION ON, UM, NAVIGATORS.

UM, DO ANY, I IMAGINE THAT THE, UM, THE NONPROFITS EMPLOY NAVIGATORS TO HELP FOLKS WITH THESE APPLICATIONS.

CAN YOU SPEAK TO THAT A LITTLE BIT? UH, YES.

UM, IN, IN TERMS OF, UH, GETTING ACCESS TO THOSE APPLICATIONS, WE'RE USING ALL OF THE CURRENT TOOLS.

UH, AND AGAIN, AS YOU SAY, UH, WHAT WE SAID HERE, THE, THE IMPLEMENTATION FOR WHAT WE WOULD PUT IN PLACE IS A LITTLE BIT TILL SEPTEMBER MM-HMM.

NOT QUITE AS QUICK AS WE WOULD LIKE IT TO BE FOR SOME OF THOSE REASONS, UM, IN TERMS OF INCORPORATING THE BEST USE AND THE HIGHEST USE OF APPLICATIONS.

AND THEY WILL HAVE THOSE FEATURES, UM, FOR THOSE THAT HAVE ANY IMPAIRMENTS, BECAUSE THAT'S REALLY HELPFUL.

YEAH.

IT, IT'S PROVEN TO BE THE CASE.

AND OUR, OUR CHAIR OF PUBLIC HEALTH IS HERE WITH US NOW ON THE ON AND IS ALSO ON THE COMMITTEE.

AND SHE COULD PROBABLY SPEAK TO THE, THE, UM, VITAL ROLE THAT THE NAVIGATORS PLAY, AND MAYBE THERE'S SOMETHING THAT, UH, WE CAN TAP INTO.

OKAY.

WITH REGARD TO THIS, I KNOW THAT, UM, AUSTIN ENERGY HAS A SUBCONTRACTOR WORKING ON THE APPLICATIONS AND THE ENROLLMENT AND WORKING THROUGH THEM, SO YOU'RE NOT ACTUALLY PHYSICALLY DOING THE PROCESSING YOURSELVES.

SO THIS IS REALLY MORE OF AN OVERSIGHT FOR THE CONTRACTOR TO SEE IF THERE ARE MORE, IS MORE ASSISTANCE THAT THE CITY OF AUSTIN CAN OFFER THROUGH.

YES, WELL ESTABLISHED, ESTABLISHED MEANS THAT WE KNOW ARE TRIED AND TRUE, AND JUST APPLY THEM TO THIS, TO THIS CIRCUMSTANCE.

OKAY.

THANK YOU, COLLEAGUES.

ANY OTHER THOUGHTS OR COMMENTS? THANK YOU BOTH, UM, FOR THE PRESENTATION.

THANK YOU VERY MUCH.

APPRECIATE IT.

SO NEXT UP WE'RE GONNA DO

[Items 5 & 8]

WE'RE ACTUALLY GONNA, I BELIEVE, TAKE UP ITEM EIGHT FIRST.

IS EVERYONE HERE? OKAY.

UM, WHICH WILL BE THE UPDATE ON M-B-M-B-E-W-B-E PROCUREMENT PROGRAM, UM, BY EDWARD CAMPAS.

AND THEN WE WILL HEAR FROM JAMES SCARBOROUGH, UM, ABOUT UPDATES TO OUR SMALL BUSINESS LOCAL PREFERENCE PROGRAM.

THANK YOU.

MORNING.

GOOD MORNING.

THANK YOU FOR HAVING US.

UH, MY NAME IS EDWARD CAMPOS.

I AM THE DIRECTOR OF THE SMALL MINORITY BUSINESS RESOURCES DEPARTMENT.

[00:40:05]

AND THAT IS AN UPDATE ON OUR ORDINANCE AND ADMINISTRATIVE RULES.

UM, UPDATE ON PERSONAL NET WORTH AND UPDATE ON WHERE WE ARE WITH OUR DEVELOPMENT OF ASPIRATIONAL GOALS FOR THE CITY.

SO IN JULY OF 2023, COUNCIL ADOPTED OUR NEW MBWB PROCUREMENT PROGRAM ORDINANCE.

A LOT OF HARD WORK WENT INTO THAT DEVELOPMENT OF THAT ORDINANCE.

WE HAVE SINCE BEEN WORKING ON REVISIONS TO OUR M-B-A-W-B ADMINISTRATIVE PROGRAM RULES.

UH, THERE WAS A PROCESS TO THOSE TO BE ADOPTED.

UH, THEY WERE POSTED, UH, FOR PUBLIC COMMENT, UH, FROM OCTOBER 11TH THROUGH NOVEMBER 13TH.

WE RECEIVED NO COMMENTS.

UH, WE PROVIDED, UH, AN OPPORTUNITY FOR STAKEHOLDERS TO, UH, PROVIDE COMMENTS TO THE RULE PROCESS ON OCTOBER 10TH, OCTOBER 24TH, AND AGAIN ON NOVEMBER 3RD.

UH, THE FINAL ADMINISTRATIVE RULES WERE POSTED ON THE CITY CLERK'S WEBSITE, AS WELL AS OUR OWN DEPARTMENTAL WEBSITE.

DECEMBER OF 2023, WE HAVE BEEN WORKING ON, UH, THE DEVELOPMENT OF OUR PERSONAL NET WORTH CALCULATION.

THIS HAS BEEN, UH, A REALLY WORTHWHILE COMPONENT THAT WE'VE BEEN WORKING ON, IS A VERY INTEGRAL PART OF OUR CERTIFICATION PROGRAM.

BUT HOW DID WE GET HERE? WHY DID WE TAKE THIS CHARGE TO REVIEW THIS, UH, PROCESS? AUSTIN IS QUITE UNIQUE IN THAT WE HAVE TWO COMPONENTS TO ALLOW FOLKS TO PARTICIPATE IN OUR MBWB PROGRAM.

THE FIRST IS YOU MUST SHOW THAT YOU ARE SOCIALLY DISADVANTAGED, AND THAT IS CATEGORIZE BY BEING INCLUDED IN ONE OF OUR PRESUME GROUPS, AFRICAN AMERICANS, HISPANICS, UH, NATIVE ASIAN AMERICANS, AS WELL AS FEMALES.

UH, THE OTHER COMPONENT AND THE COMPONENT THAT TALKS TO THE PERSONAL NET WORTH COMPONENT IS WE ALSO HAVE AN ECONOMIC DISADVANTAGE COMPONENT TO OUR ORDINANCE.

AND THE WAY THAT WE DETERMINE IF SOMEONE IS ECONOMICALLY DISADVANTAGED IS BY THEIR PERSONAL NET WORTH.

AND SO ONE OF THE ITEMS THAT COUNCIL, UH, THROUGH A COUNCIL RESOLUTION THAT WAS PASSED IN MARCH OF 2020, WAS TO CREATE AN INCLUSIVE PROCUREMENT WORKING GROUP, OR IPWG FOR SHORT.

AND ONE OF THE ITEMS THAT COUNCIL HAD REQUESTED THE IPWG REVIEW WAS THE PERSONAL NET WORTH COMPONENT, AS WELL AS THE ECONOMIC DISADVANTAGE, UM, UH, DEFINITION THAT MAKES UP THAT PERSONAL NET WORTH.

THE COMMITTEE REVIEWED THE PERSONAL NET WORTH AS IT CURRENTLY STOOD AND MADE THE FOLLOWING RECOMMENDATIONS, KEEP A PERSONAL NET WORTH COMPONENT, BUT CONSIDER MODIFYING OR REVISITING THE STRUCTURE.

LOOK AT THE PNW, WHETHER OR NOT IT'S TOO LOW FOR THE UNIQUE AUSTIN MARKET CONDITIONS, AND WHETHER OR NOT WE SHOULD CONTINUE TO USE THE SOUTH CONSUMER CPI, UH, THAT WE USE TO ESTABLISH OUR PERSONAL NET WORTH IN ORDER FOR US TO CONDUCT THIS WORK.

UH, SMBR CONTRACTED WITH TXP INCORPORATED TO REVIEW OUR PROCESS THAT WE DETERMINE WHAT IS PERSONAL NET WORTH, WHAT IS THAT THRESHOLD? AND SO WE'RE GONNA SHOW YOU THE RESULTS, UM, FROM THAT, UH, STUDY.

SO THIS SLIDE SHOWS YOU JUST A BASIC OVERVIEW OF WHERE WE STARTED WITH PERSONAL NET WORTH.

THIS WAS INITIALLY PART OF THE ORDINANCE THAT WAS ADOPTED IN 2006.

IT BECAME A CERTIFICATION REQUIREMENT IN 2007.

AND THE FIRST TIME THAT WE ACTUALLY INITIATED A PERSONAL NET WORTH LIMIT WAS IN 2008.

AND AGAIN, UM, THIS SHOWS THE, THE INCREASE THAT HAS, UM, THAT'S BEEN A PART OF THE PERSONAL NET WORTH SINCE, UH, 2008 TO 2023.

CURRENTLY, OUR P AND W FOR 2024 IS SET AT $2.2 MILLION.

SO PART OF THE ANALYSIS THAT WE ASKED TXP TO CONDUCT WAS BASED ON AND CENTERED AROUND TWO QUESTIONS, IS THE CURRENT, UH, P AND W THRESHOLD.

AND AT THE TIME THAT WE, UM, CONTRACTED WITH P AND W, EXCUSE ME, WITH TXP, IT WAS AT 1.69 MILLION.

WE DIDN'T KNOW WHETHER OR NOT THAT WAS TOO HIGH, TOO LOW FOR THE UNIQUE AUSTIN MARKET CONDITIONS.

BASED ON THE ANALYSIS, THE CURRENT P AND W LIMIT, AT THAT TIME, 1.69 MILLION WAS DETERMINED TO BE TOO LOW FOR THE UNIQUE MARKET CONDITIONS OF THE CITY OF AUSTIN.

THE SECOND QUESTION IS, SHOULD WE CONTINUE TO USE THE CPI THAT WE USE IN CONDUCTING AND DETERMINING THE PERSONAL NET WORTH LIMIT ON AN ANNUAL BASIS, UH, THROUGH THE ANALYSIS THAT TXP PROVIDED? YES, WE SHOULD CONTINUE TO USE THE CONSUMER PRICE INDEX, ALTHOUGH IT IS VERY LIMITED

[00:45:01]

SO WE SHOULD CON, UH, CONSIDER USING AND ADOPTING OTHER INDICES AS WELL.

THE RECOMMENDED APPROACH, UH, ON OUR NEW, TO ESTABLISH A NEW, UH, PERSONAL NET WORTH LIMIT WAS TO INCLUDE ADDITIONAL INDICES EMPLOYMENT SURVEYS FROM THE BUREAU OF LABOR STATISTICS, THE S AND P 500 INFORMATION FROM THE TEXAS A AND M, UH, REAL ESTATE RESEARCH ARM.

AND INFORMATION FROM THE AUSTIN BOARD OF REALTORS, UH, STAFF, UM, HAS, UH, REVIEWED THIS INFORMATION WITH THE MEMBERS OF THE INCLUSIVE PROCUREMENT WORKING GROUP.

WE WANTED TO BRIEF THEM ON WHAT WE WERE PLANNING.

UH, SINCE THIS WAS UNDER THEIR PURVIEW, UNDER THAT RESOLUTION THAT COUNCIL PASSED IN MARCH OF 2020, THEY DID, UH, APPROVE THE NEW APPROACH.

AND SO WE HAVE STARTED THE ADOPTION OF THE INCLUSION OF THESE NEW INDICES, AS WELL AS THE CURRENT CPI PROCESS.

AND WE CONTRACTED WITH TXP TO PROVIDE US WITH THAT NEW 2.2, UH, THRESHOLD FOR 2024.

SO WE'RE REALLY HAPPY ABOUT THE WORK THAT STAFF AS WELL AS, UH, MEMBERS OF THE INCLUSIVE PROCUREMENT WORKING GROUP, UH, DID TO GET US TO THIS POINT.

SO NOW I WANT TO TALK TO YOU ABOUT THE ASPIRATIONAL GOALS.

UH, AS PART OF THE DISPARITY STUDY, THERE WERE TWO RECOMMENDATIONS THAT THE DISPARITY STUDY REQUESTED THAT THE CITY UNDERTAKE.

THE FIRST WAS THE DEVELOPMENT OF AN ANNUAL PROCUREMENT FORECAST.

THE SECOND WAS TO USE THAT FORECAST TO DEVELOP ASPIRATIONAL GOALS FOR MINORITY AND WOMEN-OWNED BUSINESS PARTICIPATION ON OUR PROCUREMENTS, UH, THAT WILL BE COMPETITIVELY BID.

SO FINANCIAL SERVICES TOOK, UM, THE LEAD IN DEVELOPING THAT ANNUAL PROCUREMENT FORECAST, PROVIDED THAT INFORMATION TO SMBR AND BASED ON BEST PRACTICES, UH, FOLLOWING THE METHOD OF OUR, UH, DEVELOPMENT OF OUR GOALS FOR OUR DISADVANTAGE, UH, BUSINESS ENTERPRISE PROGRAM, WHICH AS Y'ALL KNOW, IS OUR FEDERAL, UH, PROGRAM THAT WE ALSO ADMINISTER ON BEHALF OF THE, UH, CITY OF AUSTIN.

AND FOR AUSTIN, UM, UH, INTERNATIONAL AIRPORT, THERE WERE OVER 200 PROCUREMENTS THAT WERE IDENTIFIED TO BE RELEASED IN, UH, FISCAL YEAR 24.

THAT WAS A LOT OF INFORMATION TO DIGEST.

UH, SO WE DECIDED TO BREAK THIS UP INTO QUARTERS.

SO WE'RE HAPPY TO REPORT THAT FOR QUARTER ONE OF FY 24, THE GOAL FOR MB PARTICIPATION WILL BE 7.28.

THE GOAL FOR WBE PARTICIPATION IS 2.13.

FOR QUARTER NUMBER TWO, WE ARE AT 7.39 FOR MBE PARTICIPATION AND 2.24 FOR WBE PARTICIPATION.

AGAIN, THESE ARE ASPIRATIONAL GOALS.

WE'LL SET TWO ADDITIONAL GOALS BY THE END OF THIS FISCAL YEAR FOR QUARTER THREE AND QUARTER FOUR.

WE'LL PROVIDE, UH, A MEMO TO MAYOR AND COUNCIL WITH AN UPDATE ON WHAT THOSE QUARTERLY GOALS LOOK LIKE.

AND THEN WE WILL PROVIDE YOU, UM, UPDATES ON, UH, WHERE WE ARE WITH MEETING THOSE GOALS AT THE END OF THIS FISCAL YEAR, AS WELL AS PROVIDING PERIODIC UPDATES TO, UH, MAYOR AND COUNCIL ON, UH, WHERE WE ARE WHEN IT COMES TO ACTUAL PAYMENTS, UH, THAT REFLECT THE PARTICIPATION LEVELS.

SO WE HAVE ASPIRATIONAL GOALS.

WE HAVE GOALS THAT WILL SHOW WHAT COUNCIL AWARDS AT THE TIME.

UH, THOSE CONTRACTS ARE AWARDED BY COUNCIL.

AND THEN WE'LL HAVE PROGRESSIVE REPORTS, UM, PERIODICALLY TO SHOW HOW WE ARE REALLY WITH ACTUAL PAYMENTS TO OUR MINORITY AND WOMEN-OWNED BUSINESSES.

AND I'M HERE TO ADDRESS ANY QUESTIONS.

WE ALSO HAVE, UH, JOHN HOCK NOTES FROM TXP, UH, WHO WE WANT TO THANK PUBLICLY ON PROVIDING US WITH A REALLY DETAILED ANALYSIS OF OUR WORK.

THANK YOU VERY MUCH, MR. CAMPOS.

UM, I'M GLAD TO HEAR THAT WE'RE GONNA HAVE THAT ADDITIONAL REPORTING.

WHERE IS THAT REPORTING GONNA BE HAPPENING? THAT REPORT MEMOS OR TO THE COMMITTEE OR WHAT IS THE PLAN? YES, MA'AM.

IT'LL BE, UM, UH, VARIOUS WAYS.

WE'LL FIRST HAVE A MEMO TO MAYOR AND COUNCIL, AND THEN WE'LL REPORT THOSE, UH, THROUGH OUR WEBSITE.

THANK YOU.

AND THEN, UM, HOW DO THESE GOALS COMPARE TO WHERE WE WERE BEFORE THE DISPARITY STUDY? THE NEW DISPARITY STUDY WAS ADOPTED.

I KNOW THERE WAS A FEAR THAT THEY WERE DROPPING SUBSTANTIALLY.

HOW DO WE UNDERSTAND THESE GOALS RELATIVE TO WHERE OUR OLD GOALS WERE? I THINK IN TERMS OF THE INFORMATION THAT WAS PRESENTED IN THE 2008 DISPARITY STUDY, WHICH WERE, WHICH WERE REFLECTIVE OF THE GOALS THAT YOU'RE SPEAKING ABOUT, THEY'RE ALMOST CUT IN HALF.