[FY 2024 Budget Workshop: Office of Business Opportunity]
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DIRECTOR MARSHA MURRAY, TO PROVIDE THE OFFICE OF BUSINESS OPPORTUNITY BUDGET.
THE FLOOR IS GEORGE, DIRECTOR.
GOOD MORNING, VICE CHAIR COUNCIL MEMBERS AND STAFF.
I'M PLEASED TO PRESENT O B'S PROPOSED FISCAL YEAR 24 BUDGET TODAY.
I'M JOINED TODAY BY O B'S CHIEF FINANCIAL OFFICER PATSY JACKSON.
I WOULD ALSO LIKE TO RECOGNIZE SOME OF THE OBO TEAM MEMBERS HERE WITH ME TODAY.
OUR NEW ASSISTANT DIRECTOR, LENCIA HORDE, AS WELL AS OUR CHIEF OF STAFF, NORMA MEADOWS.
SO THIS IS, UH, FOR THE SLIDE NUMBER THREE.
THIS IS OUR OBOS ORGANIZATIONAL CHART.
UM, OUR GENERAL FUND, 1000 ACCOUNTS FOR 45 FULL-TIME EMPLOYEES.
I INCLUDE EXECUTIVE OVERSIGHT, THE OBO SOLUTIONS CENTER IN EXTERNAL AFFAIRS, CONTRACT COMPLIANCE, AND OUR CERTIFICATIONS AND DESIGNATIONS.
OUR SPECIAL FUND 24 24, COVERS THE CONTRACTOR RESPONSIBILITY FUND, WHICH SUPPORTS THE ADMINISTRATIVE AND PROGRAMMATIC OPERATIONS OF THE CITY'S PAYER PLAY PROGRAM.
AS YOU KNOW, THE PAYER PLAY PROGRAM AIMS TO LEVEL THE PLAYING FIELD FOR CONTRACTS BETWEEN BIDDERS THAT CHOOSE TO OFFER HEALTH BENEFITS TO THEIR WORKFORCE AND THOSE WHO DO NOT.
THE PROGRAM ALSO OFFSETS THE COST OF PROVIDING HEALTHCARE TO UNINSURED PEOPLE.
HARRIS COUNTY AREA FUND 24 24 SUPPORTS TWO FULL-TIME EMPLOYEES.
SO FOR ON SLIDE FOUR, AS YOU CAN SEE, APPROXIMATELY 76% OF OUR PROGRAMS FALL UNDER THE SOUND FINANCIAL MANAGEMENT MURAL PRIORITY, WHILE 13% SUPPORTS RESILIENT HOUSTON FOR SLIDE FIVE.
THIS SLIDE REPRESENTS OUR CURRENT BUDGET FOR FISCAL YEAR 23 AS COMPARED TO OUR PROPOSED BUDGET BUDGET FOR FISCAL FISCAL YEAR 24.
BUDGET IS, UH, $6.6 MILLION, AND THE PROPOSED BUDGET FOR FISCAL YEAR 24 IS $6.5 MILLION, RESULTING IN A DECREASED EXPENDITURE OF APPROXIMATELY $83,000, WHICH IS LARGELY DUE TO A DECREASE IN, IN, UM, FOUR, THE HPDS CRISIS CALL DIVERSION PROGRAM BASED ON PRO PROJECTED POP FUND BALANCE.
ON SLIDE SIX, UH, PROGRAM ONE IS REFLECTED PROGRAM ONE IS OUR ADMINISTRATIVE SERVICES PROGRAM, WHICH IS COMPRISED OF OPIOIDS EXECUTIVE LEADERSHIP TEAM, WHICH INCLUDES THE DIRECTOR, THE ASSISTANT DIRECTOR, THE CFO, THE CITYWIDE TITLE SIX COMPLIANCE COORDINATOR, AND OUR ONE PERSON ANALYTICS AND REPORTING TEAM.
OUR PROPOSED BUDGET FOR FISCAL YEAR 24 IS $1.9 MILLION.
OF NOTE IS THAT THIS PROGRAM INCLUDES FUNDING FOR THE CITYWIDE CONTRACT MONITORING SYSTEM, WHICH IS THE B TWO G NOW, AND FOR THE EXTENSION OF TWO STAFF AUGMENTATION CONTRACT COMPLIANCE MONITORING CONTRACTS.
ON SLIDE SEVEN, PROGRAM TWO IS OUR BUSINESS SUPPORT AND DEVELOPMENT PROGRAM, WHICH PROVIDES BUSINESS COUNSELING REGARDLESS OF CERTIFICATION AND BUSINESS DEVELOPMENT PROGRAMS TO LOCAL BUSINESSES.
THIS PROGRAM ALSO RAISES AWARENESS OF OBO SERVICES AND CITY CONTRACT AND OPPORTUNITIES.
WHILE THE PROPOSED BUDGET FOR THIS PROGRAM IS APPROXIMATELY $700,000, THIS PROGRAM RELIES HEAVILY ON EXTERNAL FUNDING TO BE ABLE TO DELIVER FULL PROGRAMMING.
OUR FUNDING PARTNERS INCLUDE CAPITAL ONE BANK AND COMPLETE COMMUNITIES FUNDS, AS WELL AS FUNDS THAT ARE RAISED THROUGH OUR ANNUAL CHAMPIONS OF DIVERSITY AWARD.
CEREMONY OF NOTE IS THAT OUR OBO SOLUTIONS CENTER ASSIST AT LEAST 2,500 SMALL BUSINESSES AND ASPIRING ENTREPRENEURS ANNUALLY ON SLIDE EIGHT WITH A BUDGET OF APPROXIMATELY $1 MILLION.
PROGRAM THREE IS OUR CERTIFICATIONS AND DESIGNATIONS PROGRAM, WHICH ADMINISTERS SIX LOCAL CERTIFICATIONS AND TWO FEDERAL CERTIFICATIONS ON BEHALF OF THE US DEPARTMENT OF TRANSPORTATION.
IN ADDITION, WE FACILITATE HISTORICALLY UNDERUTILIZED BUSINESS CERTIFICATION ON BEHALF OF THE STATE OF TEXAS IN PARTNERSHIP WITH THE NATIONAL LGBT CHAMBER.
OUR DIRECTORY ALSO INCLUDES CERTIFIED LGBT BUSINESS ENTERPRISES.
THIS PROGRAM ALSO PROCESSES APPLICATIONS FOR THE CITY'S LOCAL PROCUREMENT PREFERENCE PROGRAM, HIGHER HOUSTON FIRST PROGRAM DUE TO THE HIGH DEMAND FOR CERTIFICATIONS ACROSS THE REGION.
IN ADDITION TO THE GENERAL FUND, THIS PROGRAM IS ALSO SUPPORTED BY THE HOUSTON AIRPORT SYSTEM, WHICH FUNDS ADDITIONAL CERTIFICATION STAFF TO HANDLE FEDERAL CERTIFICATIONS.
ON SLIDE NINE, THIS REFLECTS PROGRAM FOUR WITH A BUDGET OF $1.6 MILLION IN OUR CONTRACT COMPLIANCE PROGRAM, WHICH MONITORS ALL CITY CONTRACTS WITH THE EXCEPTION
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OF THOSE CONTRACTS THAT ARE, UM, LED BY THE HOUSING AND THE AIRPORT DEPARTMENT.AND IN THIS PROGRAM, WE ENSURE COMPLIANCE WITH M-W-S-B-E PROGRAM REQUIREMENTS AND ENSURES LOCAL AND FEDERAL LAW, UH, COMPLIANCE WITH, WITH LOCAL AND FEDERAL LAW STANDARDS, INCLUDING PREVAILING WAGE COMPLIANCE AND PROMPT PAYMENT REQUIREMENTS ON CONTRACTS.
THE PERFORMANCE, UH, MEASURE REFLECTED HERE FOCUSES ON ENSURING MAXIMUM COMPLIANCE BY CONTRACTORS WITH M-W-S-B-E GOALS AND OR LABOR STANDARDS REQUIREMENTS.
IN ADDITION, AS IT RELATES TO THE PAYER PLAY PROGRAM, THE ASSOCIATED PERFORMANCE MEASURE SHOWS THAT MORE CONTRACTORS ARE ENCOURAGED TO PLAY BY PROVIDING HEALTH INSURANCE TO THEIR EMPLOYEES.
SLIDE 10, PROGRAM FIVE WITH A BUDGET OF $289,000 IS DEPARTMENT SERVICES, WHICH ASSIST DEPARTMENTS, CITY DEPARTMENTS WITH SETTING CONTRACT SPECIFIC MWB GOALS AND WORKING WITH THE CONTRACT AND COMMUNITY TO ENSURE IN CO COMPLIANCE WITH THOSE GOALS.
ONE OF THE MEASURES OF SUCCESS IN THIS PROGRAM IS HOW MANY GOOD FAITH EFFORTS REVIEWS THE PROGRAM STAFF HAVE TO PERFORM.
FEWER REVIEWS MEANS MORE CONTRACTORS HAVE SUBMITTED PLANS THAT MEET ADVERTISED GOALS PRIOR TO COUNCIL WARD.
ON THE NEXT SLIDE, PROGRAM SIX IS OUR WORKFORCE DEVELOPMENT PROGRAM WITH A PROPOSED BUDGET OF $175,000.
THIS PROGRAM FACILITATES INITIATIVES SUCH AS THE TURNAROUND, HOUSTON JOB AND READINESS FAIRS.
SINCE 2016, THESE FAIRS HAVE SERVED OVER 6,000 HOUSTONIANS CONNECTING THEM TO MUCH NEEDED RESOURCES.
THIS PROGRAM IS ALSO AUGMENTED BY EXTERNAL FUNDING FOR THE, ON THE NEXT SLIDE, PROGRAM SEVEN REPRESENTS OUR INTER FUND TRANSFERS.
THERE'S A PROPOSED $674,000 TRANSFER TO THE HEALTH DEPARTMENT'S CL CLIENT ACCESS PROGRAM, AND THE FIRE DEPARTMENT'S EMERGENCY TELEHEALTH AND NAVIGATION PROGRAM.
ETHAN, USING FUNDS, FUNDS COLLECTED IN THE PAYER PLAY PROGRAM.
AND THAT TAKES ME TO, UM, UH, TO MS. JACKSON.
I WILL NOW TURN OVER THE PRESENTATION TO OBSG FINANCIAL OFFICER PATSY JACKSON.
THIS IS OUR EXPENDITURE BY FUND SLIDE.
THIS IS A FUND-BASED SUMMARY OF OUR EXPENDITURES.
IT SHOWS A PROPOSED $130,000 INCREASE IN GENERAL FUND AND $213,000 DECREASE IN SPECIAL REVENUE FUND OVERALL.
THEREFORE, 23 BUDGET VERSUS THE FY 24 PROPOSED DECREASED BY $83,000.
SLIDE 14 SHOWS OUR PERSONNEL VERSUS OUR NON PERSONNEL COST.
FOR GENERAL FUND, 80% OF OUR BUDGET IS PERSONNEL.
THE REMAINING 20% INCLUDES RESTRICTED ACCOUNTS, SUPPLIES, SERVICES SUCH AS B TWO G AND STAFF AUGMENTATION CON COMPLIANCE MONITORING CONTRACTS FUND 24 24 HAS ONLY 17% USED TO COVER PERSONNEL.
THE REMAINING 83% COVERS INTER FUND TRANSFERS TO CLIENT ACCESS PROGRAM AND ETHAN SUPPLIES AND RESTRICTED ACCOUNTS.
THIS SLIDE SHOWS OUR REVENUE BY PROGRAM CERTIFICATION AND DESIGNATIONS.
COLLECTED FUNDS FOR MISCELLANEOUS COPIES AND FEES, CONTRACT COMPLIANCE PROGRAM, COLLECTIVE FUND TO REPAIR PLAY PROGRAM, AND THE REVENUE FOR THE HPW CONTRACT COMPLIANCE AREA FUNDING.
SLIDE 16 SHOWS REVENUE BY FUND.
IT BREAKS OUT THE DIFFERENCE BETWEEN THE GENERAL FUND AND THE SPECIAL FUND, WHICH IS THE CONTRACTOR'S RESPONSIBILITY FUND COLLECTIONS.
SLIDE 17 IS THE PREVIOUS TWO SLIDES ILLUSTRATED, WHICH ANTICIPATE REVENUE CHANGES IN OUR CONTRACT COMPLIANCE PROGRAM, A PROJECTED INCREASE IN THE REVENUE FROM PAYROLL PLAY PROGRAM DUE TO AN INCREASE IN PAY OPTION CONTRACTS AND ALSO A DECREASE DUE TO THE LOSS OF FUNDING FOR ONE HPW CONTRACTS STAFF MEMBER.
AND WITH THAT, I WILL TURN THE SLIDE PRESENTATION BACK OVER TO DIRECTOR MURRAY.
SO THAT CONCLUDES OUR PRESENTATION.
UM, BEFORE WE TAKE ANY QUESTIONS YOU MAY HAVE, I'D LIKE TO BRIEFLY HIGHLIGHT THE APPENDIX THAT FOLLOWS, WHICH YOU CAN REVIEW AT YOUR ELECTION.
THE APPENDIX PROVIDES RESTRICTED, RESTRICTED ACCOUNT DETAILS, A BREAKDOWN OF STAFF DEMOGRAPHICS AND OIOS FISCAL YEAR 23 ACCOMPLISHMENTS.
UH, WE HAVE A NUMBER OF COUNCIL MEMBERS IN QUEUE.
WE'LL START WITH VICE CHAIR EDWARD POLLARD.
THANK YOU CHAIR, AND THANK YOU DIRECTOR AND YOUR ENTIRE TEAM FOR, UH, THE PRESENTATION AND THE WORK TO PUT FORTH TOWARDS IT.
UM, GOING TO PAGE THREE, UM, THE FTES, UM, WE HAVE 13 IN CERTIFICATION AND 13 IN COMPLIANCE.
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UM, WHAT'S YOUR OUTLOOK ON THE CURRENT VENDORS THAT WE HAVE THAT ARE ABLE TO HELP WITH COMPLIANCE? DO YOU THINK IT COULD BE POSSIBLY MORE EFFICIENT TO HAVE ALL THE IN-HOUSE JUST FOCUSED ON CERTIFICATIONS AND THEN WE OUTSOURCE THE COMPLIANCE, UH, ASPECT OF IT TO SO THAT IT WON'T BE SO BURDENSOME ON YOUR ENTIRE STAFF? UM, 'CAUSE I KNOW YOU ALL DO A LOT WITH A LITTLE, SO WHAT'S YOUR INSIGHT ON ON MAYBE A CHANGE IN THAT DIRECTION? SO I THINK IDEALLY, YOU KNOW, WE'D CERTAINLY WANT TO BE STAFFED AT A LEVEL THAT WOULD ALLOW US TO, UM, TO HANDLE THE VOLUME OF CERTIFICATION APPLICATIONS THAT WE, UM, WE WE'RE CURRENTLY RECEIVING AS WELL AS THE, THE COMPLIANCE ON THE 1200 PLUS CONTRACT.SO THAT WOULD BE IDEAL FOR THERE TO BE INTERNAL STAFFING, BUT, BUT THE CALCULATED NEED FOR CONTRACT COMPLIANCE IN-HOUSE IS PROBABLY ABOUT 30, 30 OR SO COMPLIANCE OFFICERS.
AND, UM, SO UNTIL WE GET TO THAT POINT, UM, WE DO NEED, WE DO NEED THE EXTERNAL, UH, ASSISTANCE OF EXTERNAL CONTRACTORS TO BE ABLE TO, UH, TO BE ABLE TO PERFORM, UH, THESE FUNCTIONS.
AND WHAT ABOUT ON THE CERTIFICATION SIDE? HOW MANY IN THE IDEAL WORLD, BASED ON THE AMOUNT OF APPLICATIONS YOU ALL GET, WOULD YOU NEED? YOU KNOW, WE HAVEN'T, WE HAVEN'T NECESSARILY, ACTUALLY, I'D PROBABLY HAVE TO GET BACK TO YOU ABOUT THAT.
UH, PER SE, IT'S, IT'S CERTAINLY MORE THAN THE 13 THAT WE HAVE.
WE HAVE INCREMENTALLY INCREASED THE NUMBER OF STAFF AND THE MAYOR HAS, HAS ACTUALLY INCREASED, UH, STAFFING HIS CERTIFICATION AND, UM, DURING HIS ADMINISTRATION.
AND LIKE I MENTIONED IN OUR PRESENTATION, WE DO HAVE SOME ASSISTANCE FROM THE HOUSTON AIRPORT SYSTEM BECAUSE AS I MENTIONED, WE DO, UH, A DISADVANTAGED BUSINESS ENTERPRISE CERTIFICATION, UM, ON BEHALF OF THE US DEPARTMENT OF TRANSPORTATION, BUT DEFINITELY MORE THAN THE 13 TO ACTUALLY EXPEDITIOUSLY PROCESS APPLICATIONS SO THAT FOLKS CAN TAKE ADVANTAGE OF THE CONTRACT AND OPPORTUNITIES IN THE REGION.
AND DO YOU THINK THAT CONTRACTING OUT FOR THE TIME BEING IS THE MOST EFFICIENT WAY TO GO? AND WHAT HAS BEEN YOUR, UM, WHAT HAS BEEN YOUR DETERMINATION ON HOW THE, THE OUTSIDE VENDORS HAVE BEEN DOING? SO, CONTRACTING OUT FOR CONTRACT COMPLIANCE IS, IS DEFINITELY, UH, THE IDEAL.
CERTIFICATION IS A LITTLE BIT MORE, UM, I THINK NUANCED.
UM, BUT IN TERMS OF THE EXISTING VENDORS, UH, HILL DAY AND IMPACT STRATEGIES, THEY'VE BEEN DOING A FANTASTIC JOB.
WHAT WE HAVE NOTICED WITH THE ENGAGEMENT IS THAT, UM, WE'VE NEEDED TO HAVE MORE TOUCH POINTS WITH THE CONTRACT AND COMMUNITY TO ENSURE COMPLIANCE AND WITH OUR LIMITED STAFFING THAT REALLY HAD NOT BEEN, YOU KNOW, UM, UH, POSSIBLE AT THE LEVEL THAT WE NEEDED TO.
SO THEY'RE CERTAINLY ENGAGED, UM, BEFORE THINGS GET TOO BAD FOR TOO FAR DOWN THE LINE IN TERMS OF NON-COMPLIANCE WITH THE VARIOUS REQUIREMENTS, THEY'RE ABLE TO GET AHEAD OF THOSE ISSUES.
THEY'VE ALSO AUTOMATED SOME OF OUR EXISTING PROCESSES, WHICH WE'RE ABLE TO, UH, BENEFIT FROM.
AND THEIR EXPERTISE HAS BEEN USED TO ACTUALLY TRAIN OUR, UM, INTERNAL COMPLIANCE FOLKS AS WELL.
SO IT'S, IT'S BEEN A SIGNIFICANT GAIN FOR US.
SO JUST A QUICK FOLLOW UP TO COUNCIL MEMBER'S QUESTION.
SO CON CONTRACT COMPLIANCE AT 13 FTES, YOUR NEED IS 30, PROBABLY ABOUT 37.
SO THAT IS 24 ADDITIONAL FTES, RIGHT? MM-HMM
WHAT IS THE AVERAGE SALARY OF A CONTRACT COMPLIANCE PERSON? SO TO, TO THE AVERAGE SALARY IS A, IS A PRO IS JUST A LITTLE BIT BEFORE BELOW RATHER, UM, $50,000 TO BE A REGULAR COMPLIANCE, UH, PERSON.
UM, AND THEN FOR SENIOR, UM, IT'S A, A LITTLE BIT ABOVE 55.
SO IF YOU HAD A $50,000 EMPLOYEE, I WOULD BAKE IN 20% FOR BENEFITS THAT WE ASSUME.
SO THE TOTAL COST, WHAT'S THAT MAKING? 1.6.
SO IT LOOKS LIKE IT'S ROUGHLY ABOUT 62,000, 63,000 TIMES 24, WHICH IS, THAT'S NOT RIGHT.
SO QUESTION TO YOU IS THE TWO CONTRACTS THAT ARE IN PLACE TODAY FOR OUTSOURCING THOSE FTES, I FORGOT THE DOLLAR AMOUNT.
DO YOU KNOW OFFHAND HOW MUCH MONEY WE'RE SPENDING ON A YEARLY BASIS UTILIZING AND
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OUTSOURCE TWO COMPANIES? SO FOR A 12 MONTH PERIOD, IT'S ABOUT NINE 900,000.$900,000 FOR WHAT? A PERIOD OF, FOR, FOR 12 MONTH PERIOD.
SO FOR THE TWO, TWO VENDORS COMBINED.
SO IT'S CHEAPER TO OUTSOURCE THAN IT IS TO HIRE 24 NEW PEOPLE.
SO WHY WOULDN'T WE CONTINUE DOWN THE OUTSOURCING PATH IF IT IS LESS EXPENSIVE AND YOU'RE TELLING US WE GET GOOD SERVICE? SO I, YOU KNOW, I, I, SO I, I DO THINK THAT THAT'S DEFINITELY A DECISION THAT THE, THE CITY HAS TO MAKE.
WHETHER OR NOT WE WANT TO, YOU KNOW, FOCUS THOSE EFFORTS ON, ON, ON ENGAGING FOLKS THAT ARE EMPLOYED BY THE CITY, UH, VERSUS CONTRACTING OUT THOSE SERVICES.
AND YOUR RECOMMENDATION WOULD BE FOR, FOR ABSOLUTE EFFICIENCY? I WOULD, I I THINK CONTRACTING OUT THOSE SERVICES ACTUALLY DO MAKE SENSE, BUT IN COMBINATION, I DO THINK IN COMBINATION WITH ALSO HAVING INTERNAL COMPLIANCE FOLKS THAT CAN PERFORM AUDIT AND FUNCTIONS, I THINK THAT TOGETHER ACTUALLY COULD MAKE FOR A SUCCESSFUL CONTRACT COMPLIANCE AREA TO HAVE BOTH IN INTERNAL FOLKS AS WELL AS, UH, UM, FOLKS THAT WE, WE CONT VENDORS WE CONTRACT WITH TO PERFORM THE SERVICE.
IT SOUNDS LIKE A GOOD DEAL TO, TO AUGMENT THE STAFF.
AND, AND I NOTICE IN THE, IN THE BUDGET THAT YOU'VE, YOU HAVEN'T PUT 37, YOU KNOW, PEOPLE IN THE BUDGET.
YOU'VE GOT 14.7 FTES IN CONTRACT EMPLOY, UH, COMPLIANCE.
SO YOU'RE NOT ANTICIPATING HIRING MORE IN Y 24 NO.
BECAUSE OF THE STAFF AUGMENTATION CONTRACTS.
RIGHT NOW, THE, THE, THE APPROACH THAT WE'VE TAKEN TO ADDRESSING SOME OF THE IMMEDIATE NEEDS IS, IS TO ENGAGE VENDORS.
UM, THANK YOU TO, UH, BY TO MAYOR PRO TEM AND ED POLLARD FOR ASKING THAT.
'CAUSE THOSE WERE A LOT OF MY QUESTIONS.
I WANNA TALK TO YOU A LITTLE BIT ABOUT THE, THE PROCESS THAT, UM, OBO HAS IN CONSTRUCTION CONTRACTS, UM, WHEN BIDS ARE FIRST OPENED, THE PRIME CONTRACTORS LIST, THE SUBS, THE MWBE SUBS THAT THEY'RE GOING TO USE, AND THEN THERE'S A PROCESS BY WHICH OBO VETS THOSE SUBS TO MAKE SURE THEY'RE CERTIFIED TO MAKE SURE THEY CAN DO THE WORK OR, OR WHATEVER THAT PROCESS IS.
AND I'D LIKE FOR YOU TO TALK A LITTLE BIT ABOUT THE, THE TIMELINE FOR THAT PROCESS.
OR WHAT, WHAT'S THE ID, WHAT'S THE CURRENT TIMELINE AND WHAT'S THE IDEAL KIND OF GOAL TIMELINE? OKAY.
SO FOR THOSE CONSTRUCTION PROJECTS, UM, IF IN FACT A CONTRACTOR HAS SUBMITTED A PLAN THAT MEETS THE ADVERTISED GOALS, THEN IT DOES, THOSE PLANS DON'T COME TO OBO FOR VETTING.
THE CONTRACTING DEPARTMENT CAN JUST GO STRAIGHT TO AWARD ASSUMING THAT EVERYTHING ELSE IS RIGHT.
SO IT PROVIDED, IT ONLY COMES TO OBO WHEN, WHEN THERE'S AN ISSUE WITH AN MWBE PLAN, IF THE PLAN FALLS SHORT OF THE ADVERTISED GO, OR THERE ARE CONTRACTORS, THERE'S CERTIFIED CONTRACTORS LISTED ON THAT PLAN THAT MAY NOT BE CERTIFIED OR MAY NOT BE PERFORMING, UH, WHAT WE CALL A COMMERCIAL USEFUL FUNCTION, UM, THEN THOSE, THOSE PLANS WILL COME TO OBO, UH, FOR REVIEW.
AND SO THAT'S ONLY A FRACTION OKAY.
OF THE, OF THE, UH, PLANS THAT ACTUALLY, UH, COME TO OBO.
AND SO THE DEPARTMENT, UM, SO IT TAKES ABOUT A 10 DAY PERIOD, UM, UM, IF THERE ISN'T A NEED TO HAVE AN APPEAL.
UM, MEANING THAT, UH, ONCE OBOS LOOKED AT THE, UM, AT THE PARTICIPATION PLAN AND DETERMINED WHETHER OR NOT THE CONTRACTOR HAS MADE GOOD FAITH EFFORTS, THAT THE DETERMINATION IS THAT THE CONTRACTOR HAS MADE GOOD FAITH EFFORTS TO ARRIVE AT THAT PLAN THAT'S LEFT LESS THAN THE ADVERTISED GOAL.
UM, THEN IT GOES, THE DEPARTMENT CAN MOVE FORWARD.
HOWEVER, IF THE DETERMINATION IS THAT THEY HAVE NOT MADE GOOD FAITH EFFORTS, THEN THAT CONTRACTOR HAS AN OPPORTUNITY TO AN APPEAL PROCESS, WHICH THE FIRST LAYER OF REVIEW WOULD BE APPEALED TO THE DIRECTOR FOR FURTHER REVIEW.
AND IF THE DETERMINATION IS MADE THAT THEY HAVE NOT MADE GOOD FAITH EFFORTS, THEN THE FINAL LAYER OF ADMINISTRATIVE REVIEW IS TO OUR LEGAL DEPARTMENTS.
AND ONE MORE THING, WE, OUR CERTIFICATION, WE DO ALL THE WORK TO CERTIFY THESE COMPANIES AND THEN THAT, THEN THEY USE THIS CERTIFICATION AT OTHER ENTITIES LIKE HISD AND, BUT WE DON'T GET, I MEAN, LIKE, THEY DON'T HAVE TO PAY THESE OTHER GOVERNMENTAL ENTITIES DON'T HAVE TO PAY.
IS THERE A WAY TO CHARGE THE OTHER ENTITIES FOR OUR CERTIFICATION, YOU KNOW, SOME KIND OF FLAT FEE FOR, HEY, YOU'RE USING OUR CERTIFICATION, YOU KNOW, YOU DON'T HAVE TO DO ANY WORK.
I CERTAINLY WOULDN'T BE OPPOSED TO THAT.
STAFF FROM COUNCIL MEMBER ABBY CAYMAN'S OFFICE.
UH, THANK YOU FOR THE WONDERFUL PRESENTATION, MADAM CFO AND MADAM DIRECTOR.
UH, MY QUESTION IS ASKED ON BEHALF OF COUNCIL MEMBER CAYMAN REGARDING THE LGBT ENTERPRISE CERTIFICATIONS,
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DO YOU HAVE THE NUMBERS ON THE UTILIZATION RATE OF, UM, THIS, UH, SPECIFIC PROGRAM AND ALSO EFFORTS, UH, INFORMATION ON THE EFFORTS DONE TO PROMOTE IT? UM, I'LL ALSO SUBMIT THIS QUESTION ONLINE.SO IN TERMS OF THE UTILIZATION, I BELIEVE, UM, THE LAST FISCAL YEAR WE HAD, UH, ONE OR TWO LGBT CERTIFIED, UH, LG BTES ACTUALLY USED ON, UH, CONTRACTS.
THAT'S WHAT OUR ANALYSIS IS ACTUALLY, UM, SHOWN.
UM, WE DON'T HAVE A LARGE POOL OF LGB RIGHT NOW.
UH, WE'RE RELY ON THE NATIONAL CHAMBER TO ACTUALLY, UH, PROVIDE US, UH, WITH THOSE NAMES ON A QUARTERLY BASIS.
BUT I, THE NUMBER OF, THE NUMBER OF LGB TBE THAT ARE ACTUALLY IN OUR DIRECTORY, I THINK IT'S PROBABLY LESS THAN 50.
AND YOU SAID YOU WERE RELYING ON THE NATIONAL CHAMBER, UM, FOR PROMOTION EFFORTS AND GETTING THOSE NUMBERS UP, OR? WELL, THEY CERTIFY, SO WE DON'T CERTIFY, UH, THE CITY OF HOUSTON DOES NOT, UNLIKE OUR OTHER CERTIFICATIONS, WE DON'T CERTIFY LGBT UH, BES.
UH, WE HAVE COORDINATED WITH THE NATIONAL CHAMBER TO MAKE SURE THAT OUR STANDARDS ARE ALIGNED.
UM, BUT THEY, THEY DO, THEY PERFORM THE CERTIFICATION PROCESS AND THEN THEY ACTUALLY SHARE WITH US ON A QUARTERLY BASIS THOSE NUMBERS.
BUT IN TERMS OF PROMOTION, OUR PROMOTION, UM, EFFORTS, OUR PROMOTIONAL EFFORTS ARE TO ALL CERTIFIED FIRMS. SO ALL FIRMS THAT ARE ACTUALLY IN OUR DIRECTORY WILL RECEIVE INFORMATION ABOUT, UM, UM, BID OPPORTUNITIES, WILL RECEIVE INFORMATION ABOUT NETWORK AND OPPORTUNITIES PROGRAMMING, ET CETERA.
AND JOINING US VIRTUALLY, COUNCIL MEMBER LETITIA PLUMMER.
THANK YOU, DIRECTOR MURRAY, I'M SORRY, I COULD HEAR YOU EARLIER.
SO IF THIS WAS ALREADY ANSWERED, UM, PLEASE EXCUSE ME AND I'LL, I'LL GET THE ANSWER, UM, LATER.
REGARDING, UM, MINORITY PRIMES, CAN YOU TELL OR EXPLAIN A LITTLE BIT HOW, SINCE, SO WHAT WE'VE NOTICED DURING COVID WAS THE EXPENSES OF PRODUCTS WERE PRETTY HIGH, RIGHT? AND THERE'S A, A VERY LITTLE PROFIT MARGIN THERE.
IF A PRIME IS A MINORITY FIRM, THEY STILL HAVE TO GET MINORITY PARTICIPATION.
SO WE CHANGED, WE CHANGED OUR PROGRAM FOR MANY YEARS WAS A SUBCONTRACTING PROGRAM, MEANING THAT, UH, YOU COULD ONLY GET CREDIT TOWARDS MEETING THE GO IF YOU SERVED AS A SUBCONTRACTOR.
AND SO WE CHANGED THAT LAST, UH, LAST YEAR TO ALLOW FOR MINORITY AND WOMEN, UH, BUSINESS ENTERPRISES WHO ARE SERVING AS PRIMES TO COUNT THESE, THE, THEIR OWN PARTICIPATION, THEIR OWN SELF PERFORMANCE FOR UP TO 50% OF THE ESTABLISHED GOAL.
BUT THEY DO HAVE TO SUBCONTRACT OUT THE REMAINING 50%.
AND THIS WAS DONE TO ENSURE WE CERTAINLY WANTED TO SUPPORT MWBES IN, IN, IN, IN DEVELOPING CAPACITY, BUT WE ALSO WANTED TO, TO CONTINUE TO SUPPORT THOSE MWBES THAT ARE ACTUALLY FUNCTIONING IN A SUBCONTRACTING CAPACITY, WHOSE BUSINESS MODEL IS EITHER TO FUNCTION IN THAT CAPACITY OR THEY HAVEN'T GOTTEN TO THE POINT YET OF ACTUALLY GROWING INTO PRIMES.
SO THEY STILL HAVE TO, THEY STILL HAVE TO GET 50% MINORITY PARTICIPATION, THEN YOU STILL HAVE TO ENGAGE OTHER CERTIFIED FIRMS FOR 50% OF THE ADVERTISED GOALS.
UM, THE DISPARITY STUDY THAT, UM, WE INITIALLY DID, DID NOT COME OUT.
UM, BUT THEN WE ARE NOW CONDUCTING A NEW DISPARITY STUDY.
IS THAT TRUE? YES, WE DO HAVE A, A CONSULTANT ENGAGED FOR A NEW STUDY.
AND HOW MUCH MONEY DID WE SPEND ON THE FIRST DISPARITY? UM, ABOUT $900,000.
AND THEN HOW MUCH ARE WE SPENDING ON THE SECOND, UM, APPROXIMATELY THE SAME AMOUNT AND WHEN, WHAT IS THE TIMELINE FOR THE, THE SECOND DISPARITY STUDY TO COME OUT? SO WE ANTICIPATE THAT WE'LL HAVE A STUDY DRAFT BY NOVEMBER OF THIS YEAR.
SO WE'VE ASKED THE CONSULTANT TO PERFORM THE STUDY ON AN EXPEDITED BASIS, UH, NINE MONTHS.
IT STUDIES ARE TYPICALLY TAKE ABOUT A YEAR AND A HALF, UH, TO DO AT LEAST.
UM, BUT THEY, THEY WILL BE PERFORMING THAT STUDY ON AN, UM, ON A NINE MONTH BASIS.
AND THEY HAVE A REALLY AGGRESSIVE OUTREACH, UM, AND ENGAGEMENT PLAN FOR THE COMMUNITY TO MAKE SURE THAT WE GET, UH, INFORMATION AND THE FEEDBACK FROM THE COMMUNITY THAT WILL ENHANCE THE, THE STUDY.
AND THE REASON THAT WE DID NOT GO FORWARD WITH THE FIRST STUDY THAT WE SPENT 900,000 ON, SO THAT THAT PARTICULAR STUDY, UM, WE COULD NOT USE, UM, AS, AS A CITY.
AND I WOULD ACTUALLY JUST DIRECT YOU TO OUR LEGAL DEPARTMENT IF YOU'D LIKE MORE DETAILS ON THAT.
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PRIME WHO IS AN MWBE, ARE THEY REQUIRED TO FOLLOW THE SAME GUIDELINES ON PERCENTAGES FOR SUBS? ARE THEY REQUIRED TO HAVE AN MWBE SUB COMPONENT AS WELL? YES.SO NO MATTER IF THE PRIME IS A MINORITY FIRM OWNED, THEY ARE REQUIRED TO ADHERE TO OUR POLICIES RELATED TO THAT.
SO THEY CAN USE THEMSELVES EFFECTIVE LAST YEAR.
UH, THEY CAN USE THEMSELVES FOR UP TO 50% OF THE ADVERTISED GOAL, BUT THEY, THEY NEED TO ALSO ENGAGE, UH, OTHER CERTIFIED FIRMS FOR THE REMAINING 50%.
UM, I'LL PUT THIS VERY KINDLY.
ED POLLARD DOES A GREAT JOB OF CHALLENGING US EVERY WEEK ON MWB.
WE, WE BE IN THE ADMINISTRATION, UH, RIGHTFULLY SO, DOES A REALLY GOOD JOB IN GETTING DOWN INTO DETAIL AND LOOKING AT THE NUMBERS.
HOW DO WE MAKE HIM HAPPIER IN THE FUTURE? BECAUSE HE'S GONNA CONTINUE TO LOOK AT THESE IN MANY CASES, WE LOOK AT 'EM WITH HIM AND GO, HE'S GOT GREAT POINTS.
THEY DIDN'T ADHERE, THEY DIDN'T MAKE THEIR NUMBERS, BUT YET THEY GET SATISFACTORY RATINGS.
IT, IT'S, I STRUGGLE WITH IT A LOT OF TIMES BECAUSE I UNDERSTAND WHERE COUNCIL MEMBER POLLARD'S COMING FROM, AND I PROBABLY AGREE WITH HIM 99% OF THE TIME, BUT AT THE SAME TIME, WE'RE STILL FALLING SHORT.
SO ARE THERE, IS THERE ANYTHING THAT WE CAN DO DIFFERENTLY THAT YOU CAN MAKE RECOMMENDATIONS ON AND, AND KEEPING, I WON'T BE HERE, BUT KEEPING ED POLLARD HAPPY FOR THE NEXT FOUR YEARS? SO, YOU KNOW, I, I, AND COUNCIL MEMBER POLLARD CAN CERTAINLY CORRECT ME IF I'M, I'M WRONG ABOUT THIS.
BUT, YOU KNOW, I THINK OFTENTIMES, YOU KNOW, THE ISSUES IS, IS OUR APPLICATION OF GOOD FAITH EFFORTS, WHICH IS THE STANDARD OF REVIEW FOR COMPLIANCE WITH, UM, WITH RACE AND GENDER CONSCIOUS PROGRAMS. THAT'S THE ONLY WAY THAT A PROGRAM LIKE OURS REMAINS LEGAL.
THAT THE THESE GOALS ARE NOT, ARE NOT QUOTED.
AND SO HOW WE TRY TO MAKE SURE THAT WE GET AHEAD OF, YOU KNOW, HAVING THOSE TYPES OF ISSUES IS WE PUT REALISTIC, UM, WE PUT REALISTIC GOALS ON CONTRACTS, WE PUT GOALS ON CONTRACTS THAT ARE SPECIFIC TO THE OPPORTUNITIES THAT ACTUALLY EXIST ON THOSE CONTRACTS AND THE AVAILABILITY OF CERTIFIED FIRMS, UH, TO PERFORM THAT WORK.
NOW, BETWEEN THE TIME THAT WE SET A GOAL, WE SET GOALS IN THE TIME THAT THE PROJECT IS LET YOU KNOW, AND, AND THE PROJECT STARTS.
YOU KNOW, THERE ARE MANY THINGS THAT CAN HAPPEN.
YOU KNOW, A A CONTRACTOR CERTIFIED FIRM MAY NOT BE AVAILABLE TO BE AVAILABLE TO PERFORM THE WORK.
THE SCOPE MAY HAVE CHANGED BY THE DEPARTMENT, WHICH DOESN'T, WHICH REQUIRES THE, THE CONTRACT OR THE PRIME TO PIVOT IN SOME WAY.
AND SOMETIMES THAT PIVOT IN, UH, MEANS THAT THEY'RE NOT ABLE TO ENGAGE LEGITIMATELY AND JUSTIFIABLY ABLE TO ENGAGE A CERTIFIED FIRM TO ACTUALLY PERFORM THE WORK.
WE DO DO OUR BEST TO TRY TO ASSIST OUR COMPLIANCE TEAM TO TRY TO ASSIST OUR CON OUR CONTRACTORS IN NAVIGATING THOSE CHANGES SO THAT WAY THAT THEY CAN STILL ENGAGE OTHER CERTIFIED FIRMS, UM, IF THEY NEED HELP IDENTIFYING, WE DON'T RECOMMEND CONTRACTORS, BUT IDENTIFYING NEW FIRMS IN OUR DIRECTORY TO WORK ON.
I DON'T KNOW IF THAT ANSWERS YOUR QUESTION.
SO THE INTERESTING THING ABOUT WHAT COUNCIL MEMBER POLLETT ALWAYS BRINGS UP IS THAT THE WORK IS DONE.
SO FROM A LEGAL STANDPOINT, WE'RE OBLIGATED TO PAY THEM, BUT YET HE BRINGS UP VERY GOOD POINTS WHEN IT COMES TO THE PROCESS.
AND A LOT OF TIMES WHAT I HEAR IS WE SEEM TO BE LACKING IN THE MONITORING OF SOME OF THE CONTRACTS AND THE WAY THE WORKFLOW HAPPENS, SO THAT ALL OF A SUDDEN HALFWAY THROUGH IT, WE DON'T HAVE A FIRM OUT THERE THAT'S REQUIRED TO DO 15% AND THEY'RE AT ZERO.
AT THAT POINT, SOMEONE SHOULD STEP IN AND SAY, YOU'RE AT ZERO.
WE'RE EXPECTING YOU TO GET 15.
WHAT ARE YOU DOING FOR THE REMAINING PART OF THE CONTRACT? AND I UNDERSTAND WITH THE NEED FOR 30 ADDITIONAL 24 FTES, WHEN YOU HAVE 13, IT'S COMPLICATED.
BUT IF WE'RE GONNA RUN THIS DEPRO DEPARTMENT IN THE BEST PO POSSIBLE VEIN THAT WE CAN, WE NEED TO START PUTTING IN MONITORING SYSTEMS THAT MONITORS THEIR PERFORMANCE, GIVING THEM A WARNING, AND IF THEY FIX IT, GREAT.
AND SO TWO THINGS, YOU KNOW, CERTAINLY THE ENGAGEMENT WITH THESE TWO VENDORS.
I MENTIONED EARLIER THE, THE NEED FOR MORE TOUCH POINTS, WHICH WE DIDN'T HAVE BEFORE.
AND SO WITH THESE VENDORS THAT, THAT THOSE TOUCH POINTS ARE ACTUALLY BEING, UH, REALIZED.
UM, YOU KNOW, THERE, THERE HAVE BEEN DISCUSSIONS, UM, UM, AND SEVERAL, PROBABLY SEVERAL MONTHS AGO OR A COUPLE MONTHS AGO ABOUT DEVELOPING, YOU KNOW, THOSE PENALTIES IN THE, IN THE, UM, DURING THE COMPLIANCE, UH, CYCLE.
AND SO WE ARE WORKING WITH LEGAL TO ACTUALLY DEVELOP WHAT HAPPENS WHEN, WHEN A CONTRACTOR IS ACTUALLY NOT COMPLIANT
[00:30:01]
DURING THE COURSE OF A CONTRACT, WHAT RECOURSES CAN THERE BE? SO THERE'S ACTIVE WORK GOING ON WITH LEGAL TO ADDRESS THAT.VICE CHAIR POLLARD, THANK YOU CHAIR.
AND, UH, YEAH, I THINK IT COMES BACK TO, TO CAPACITY A LOT OF TIMES.
AND THEN BACK TO THE POLICY THAT WE HAVE ON THE BOOKS HERE AT THE CITY OF HOUSTON ON ENSURING THAT THOSE VENDORS HAVE ENOUGH TOUCH POINTS DURING THE PROCESS TO KNOW THAT THERE IS A REAL ACCOUNTABILITY ON TOP OF THEM TO ENSURE THAT THEY'RE, THEY'RE MEETING THEIR GOALS.
UM, AND I THINK OUTSIDE OF JUST THE BUDGET PROCESS IS REALLY GOING BACK TO POLICY.
AND IT WOULD BE GREAT TO HAVE AN OPPORTUNITY TO LOOK THROUGH DIFFERENT POLICIES AND SEE ARE THERE CONSIDERATIONS TO REVISE AT ALL TO MAKE, UM, THE DEPARTMENT STRONGER IN HOLDING VENDORS ACCOUNTABLE TO MAKE MEETING THEIR PARTICIPATION GOALS.
AND THEN THINGS THAT WE THINK ARE JUST BENEFICIAL TO THE OVERALL PROGRAM OF THE NWBE PROCESS.
UH, AND WE'VE TALKED OFFLINE ABOUT, UH, SEVERAL DIFFERENT CONSIDERATIONS.
UM, BUT A LOT OF TIMES OUR PROCESS, OUR POLICIES HERE AT THE CITY KIND OF, UH, CONSTRAIN US FROM BEING ABLE TO, UM, GO IN DIFFERENT DIRECTIONS WHEN IT COMES TO EITHER PENALTIES, WHEN IT COMES TO COMPLIANCE, WHEN IT COMES TO OVERSIGHT AND ACCOUNTABILITY.
UM, AND, AND BECAUSE OF THAT, I THINK WE NEED TO START THERE LOOKING AT SOME OF THESE POLICIES.
UM, AND HOPEFULLY BEFORE THIS ADMINISTRATION TURNS OVER, UM, WE CAN HAVE A COUPLE POLICIES BROUGHT TO COUNCIL FOR CONSIDERATION, UH, THAT I THINK WOULD HELP IN THE PROCESS.
BUT, UH, YOU ALL DO A GREAT JOB WITH THE AMOUNT OF, UH, EMPLOYEES THAT YOU HAVE.
I DO TRY TO DIVE INTO THOSE NUMBERS EVERY WEEK.
UM, BUT I THINK IF WE'RE ABLE TO HAVE CAPACITY, ESPECIALLY WITH THESE OUTSIDE VENDORS TO CONTINUE ON THESE TOUCH POINTS, UM, WE SHOULD SEE PROGRESS.
SO THANK YOU, THANK YOU, THANK YOU.
AND NO OTHER COUNCIL MEMBERS IN QUEUE.
AND I, I SAY THIS TO MY COLLEAGUE, MR. POLLARD, IS THAT JUST BECAUSE I VOTE AGAINST YOU DOESN'T MEAN I DISAGREE WITH YOU
EVEN I'M WITNESS TO THE MAYOR, UH, FEELING THE SAME WAY, BUT AT THE SAME TIME FROM A LEGAL PERSPECTIVE, AS HE WELL KNOWS, AS HE IS AN EXCELLENT LAWYER, THAT YOU OBLIGATED TO PAY THE FIRMS AND DO IT IN THE BEST POSSIBLE VEIN THAT YOU CAN.
SO LOOK FORWARD TO THE CONTINUING WITH THE OUTSOURCING.
I THINK THAT MAKES A LOT OF SENSE.
AND I AGREE WITH YOU ON THE SUPPLEMENTING OF, UH, OUTSOURCING WITH, UM, ADDITIONAL FTES.
WE HAVE ONE PUBLIC SPEAKER, MS. ING, AND I DID CHECK AS YOU WALK UP, UH, I DID CHECK THE, UH, BUDGET AMENDMENTS ARE DUE MAY 31ST.
THE PUBLIC HEARING IS ALSO MAY 31ST, AND THEN THE, THE VOTE IS ON JUNE 2ND ON THE ENTIRE BUDGET.
SO AGAIN, THOSE THREE DATES ARE BUDGET AMENDMENTS BY COUNCIL MEMBERS DUE BY THE 31ST.
SO IF YOU HAVE ANY BUDGET AMENDMENTS THAT YOU THINK ARE APPROPRIATE, I WOULD VENTURE TO SAY THE BEST MECHANISM WAS TO BRING THEM TO YOUR COUNCIL MEMBER OR YOUR FAVORITE COUNCIL MEMBER, LET THEM PROPOSE IT.
AND THEN MAY, MAY 31ST, WE'LL HAVE THE PUBLIC HEARING ON THE BUDGET, AND THEN WE WILL VOTE ON THE BUDGETS ON JUNE 2ND.
SO, UH, WORK HARD WITH THOSE COUNCIL MEMBERS AND, AND PUSH FORWARD WITH WHAT YOU THINK WE NEED TO ACCOMPLISH MOVING FORWARD IN THE CITY.
THANK YOU FOR YOUR QUESTIONS AGAIN.
YEAH,
THE OFFICE OF BUSINESS OPPORTUNITY DOES SO MUCH ESSENTIAL WORK THAT I THINK A LOT OF CITIZENS DON'T RECOGNIZE.
UM, AND I KNOW YOU TALKED ABOUT, UM, OUTSOURCING WITH CONTRACTS TO MEET SOME OF THE UNMET NEEDS, UM, AND SOME OF THE ISSUES AND GETTING MORE REPRESENTATION FROM DIFFERENT CONTRACTORS.
UM, AND SO MY QUESTION TO COUNCIL MEMBERS IS, UH, WHAT ARE THE UNMET NEEDS THAT YOU WOULD LIKE TO SEE PRIORITIZED IN THE FISCAL YEAR 2024? SO, UH, THAT'S A GREAT QUESTION.
AND WHAT YOU'RE SEEING IN THE CITY OF HOUSTON IS DURING COVID SALARIES ESCALATED FOR A LOT OF PEOPLE.
AND THE CITY OF HOUSTON, WE HAVE A, UH, A FRAMEWORK WITHIN, WITHIN, WE WORK ON SALARIES.
SO IF SOMEONE IS RECEIVING, FOR INSTANCE, TRUCK DRIVERS IN THE CITY, IT WAS SO HARD FOR US TO KEEP OUR TRUCK DRIVERS SOLID WASTE MANAGEMENT BECAUSE EVERY DAY THEY WERE GETTING OFFERED BY AMAZON, FEDEX, EVERY TRUCKING COMPANY OUT THERE WITH SALARIES THAT ESCALATED OVERNIGHT PROBABLY TO THE TUNE OF ABOUT 50% INCREASE.
THE WAY THE CITY OF HOUSTON IS STRUCTURED IS WE CAN ONLY GIVE A CERTAIN AMOUNT.
WE CAN'T GO ABOVE AND BEYOND THAT.
SO OUTSOURCING IS PROBABLY GONNA BE A HUGE COMPONENT ON
[00:35:01]
WHAT WE TRY AND DO IN VARIOUS DEPARTMENTS.AND, UH, OBO ISN'T THE ONLY ONE.
WE ARE HAVING SIGNIFICANT PROBLEMS IN PERMITTING SIGNIFICANT CHALLENGES.
THE CASELOAD OVER THERE IS ASTRONOMICAL, AND WE HAVEN'T BEEN ABLE TO PROVIDE MY OPINION, VERY GOOD SERVICE IN THE PLANNING ARENA, PERMIT ARENA.
SO WHEN PEOPLE GO IN FOR PERMITS FOR CONSTRUCTION OPPORTUNITIES AND THINGS LIKE THAT, OUR TURNAROUND IS NOT VERY GOOD AND THEY GET MAD.
AND WHO DO THEY CALL WHEN THEY GET MAD US? AND WE TRY AND INTERVENE THE BEST POSSIBLE WAY WE CAN.
SO, UH, MY OPINION IS WHEN YOU LOOK AT OUTSOURCING, UM, YOU GET RID OF ONE OF OUR PROBLEMS, OPEB, OTHER POST-EMPLOYMENT BENEFITS, RETIREMENT PAY.
SO AS WE ARE A DEFINED BENEFIT FIRM, UH, WE PAY PEOPLE, UH, FULL BENEFIT COSTS.
WE ALSO PAY THE LIABILITY ON MEDICAL COVERAGE, WHICH IS A PREDOMINANT NUMBER IN OPE.
SO WHEN YOU OUTSOURCE, YOU DON'T TAKE ON THOSE TWO, UH, LIABILITIES AND IT WORKS A LITTLE BIT BETTER THAT WAY.
SO WHAT YOU SEE DIRECTOR MURRAY DOING IS A GREAT OPPORTUNITY OF BLENDING IN FTES, FULL-TIME EQUIVALENTS, OUR PERSONNEL WITH OUTSOURCING OPPORTUNITIES USING THE TWO FIRMS THAT WE'RE DOING, WHO EVERY INDICATION ARE IS WE'RE RECEIVING REALLY, REALLY GOOD RESULTS FROM 'EM.
SO I THINK THAT'S THE FUTURE TO, UM, WHAT THE CITY, WHAT I WOULD RECOMMEND THE CITY LOOKING AT MORE AS MORE OUTSOURCING OPPORTUNITIES.
I DON'T KNOW IF THERE WAS ANY OTHER COUNCIL MEMBERS THAT HAVE ANY OPINIONS RELATED TO THAT, BUT I AGREE.
AND I THINK WE WILL RECESS UNTIL 1230 AND THEN WE'LL PICK UP AT 1230 WITH HUMAN RESOURCES.
AND I WILL ASK THAT QUESTION RELATED TO COUNSEL.