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[00:00:01]

>> THE TIME IS 4:30 PM.

WE HAVE A QUORUM AND THIS MEETING HAS BEEN DULY PUBLISHED.

[1. Notice and Return]

GOOD AFTERNOON AND WELCOME TO AUDIT COMMITTEE MEETING OF THE DALLAS INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES.

PLEASE STAND AND JOIN US FOR A MOMENT OF SILENCE AND

[2. Moment of Silence and Pledge of Allegiance]

REMAIN STANDING FOR THE PLEDGE OF ALLEGIANCE AND A SALUTE TO THE TEXAS FLAG.

>> THE FOLLOWING COMMITTEE MEMBERS ARE IN ATTENDANCE.

[3. Acknowledgements]

DISTRICT 4 CARLA GARCIA, DISTRICT 6 JOYCE FOREMAN.

I REPRESENT DISTRICT 2 AND CHAIR THIS COMMITTEE. I'M DUSTIN MARSHALL.

ALSO, IN ATTENDANCE ARE NON VOTING MEMBERS, CHRIS LEWIS AND I BELIEVE TONY STEVENS IS JOINING US VIA ZOOM.

THANK YOU GUYS FOR BEING HERE.

ALSO, OUR SUPERINTENDENT OF SCHOOLS JOINS US.

[NOISE] IN ORDER FOR THE BOARD TO HOLD THIS MEETING IN AN EFFECTIVE MANNER, I WANT TO LET IT BE KNOWN THAT THIS MEETING WILL BE CONDUCTED IN AN ORDERLY FASHION AND ASK THE PUBLIC TO ABIDE BY THE RULES OUTLINED IN BOARD POLICY TO BE THE LOCAL PERTAINING TO PUBLIC PARTICIPATION.

ADDITIONALLY, IT IS A CRIMINAL OFFENSE FOR A PERSON WITH INTENT TO PREVENT OR DISRUPT THE LAWFUL MEETING, TO SUBSTANTIALLY OBSTRUCT OR INTERFERE WITH THE ORDINARY CONDUCT OF THE MEETING BY PHYSICAL ACTION OR VERBAL UTTERANCE, AND THEREBY CURTAIL THE EXERCISE OF OTHERS FIRST AMENDMENT RIGHTS.

EVERYONE IS ASKED TO PLEASE WEAR YOUR MASK, COVER YOUR MOUTH AND NOSE WHILE ON DISTRICT PROPERTY.

ANY PERSON WHO REFUSES TO WEAR A MASK BECOMES BOISTEROUS OR DISRUPTIVE WHILE ADDRESSING THE BOARD OR WHILE ATTENDING TO THIS BOARD MEETINGS SHALL BE ASKED TO LEAVE BY OUR SECURITY OFFICERS.

FAILURE TO LEAVE WHEN REQUESTED TO DO SO BY A SECURITY OFFICERS MAY RESULT IN THE PERSON BEING ESCORTED FROM A MEETING AND SUBJECT TO ARREST.

SECURITY PERSONNEL WILL MONITOR THE ROOM AND ASK PEOPLE TO LEAVE THE ROOM IF THEY REFUSE TO COMPLY.

IF THIS BECOMES DISRUPTIVE, THE CHAIR WILL ANNOUNCE A RECESS.

OUR AGENDA NOW CALLS FOR THE PUBLIC FORUM SEGMENT OF OUR MEETING.

HOWEVER, I WAS INFORMED THAT NO ONE WAS SIGNED UP TO SPEAK.

[5. Action Items/Reports]

THAT BRINGS US TO ITEM 5, CONSIDER AND TYPE POSSIBLE ACTION TO APPROVE THE MINUTES OF MAY 19TH, 2021.

DO I HAVE A MOTION TO APPROVE THE MINUTES OF MAY 19TH, 2021?

>> MOVE TO AGREE.

>> I WILL SECOND. IT HAS BEEN MOVED BY TRUSTEE GARCIA AND SECONDED BY TRUSTEE MARSHALL THAT WE ADOPT AND APPROVE THE MINUTES OF MAY 19TH, 2021.

TRUSTEES, ARE THERE ANY CORRECTIONS? SEEING NONE, ALL THOSE IN FAVOR PLEASE CAST YOUR VOTE BY RAISING YOUR RIGHT HAND.

WE HAVE JUST ADOPTED THE MOTION APPROVING THE MINUTES OF MAY 19TH, 2021.

WE'RE ON TO 5.2.

CONSIDER AND TAKE POSSIBLE ACTION TO REAPPOINT NON-VOTING COMMUNITY ADVISOR TO THE AUDIT COMMITTEE, CHRISTOPHER LEWIS.

DO I HAVE A MOTION TO REAPPOINT NON-VOTING COMMUNITY ADVISOR TO THE AUDIT COMMITTEE, CHRISTOPHER LEWIS?

>> MOVE TO APPROVE.

>> I SECOND.

>> IT HAS BEEN MOVED BY TRUSTEE GARCIA AND SECONDED BY TRUSTEE FOREMAN THAT WE RE-APPOINT NON-VOTING COMMUNITY ADVISOR TO THE AUDIT COMMITTEE, CHRISTOPHER LEWIS, IS THERE ANY DISCUSSION? SEEING NONE, ALL THOSE IN FAVOR PLEASE CAST YOUR VOTE BY RAISING YOUR HAND.

YOU HAVE JUST ADOPTED THE MOTION TO REAPPOINT NON-VOTING COMMUNITY ADVISOR TO THE AUDIT COMMITTEE, CHRISTOPHER LEWIS.

THANK YOU, SIR, FOR CONTINUING TO SERVE.

WE APPRECIATE YOUR GUIDANCE AND ADVICE.

[NOISE] ALL RIGHT, WE ARE ON TO 5.3, REPORT ON DISTRICT FINANCIAL UPDATE [INAUDIBLE] THOMPSON. SORRY.

>> IT'S TYPED DRAWN THERE. [LAUGHTER]

>> IT'S NOT HERE.

>> MR. THOMPSON. I'M SCHEDULE WITH [INAUDIBLE] BE PRESENTING.

>> OH, PERFECT.

>> [INAUDIBLE]. THANK YOU FOR HAVING ME. I JUST WANT TO SAY THAT WE'VE GOT THE BUDGET AMENDMENT FOR SEPTEMBER AND WE'VE STARTED OUR DISTRICT OPERATIONS OBVIOUSLY JULY 1.

THAT'S WHEN OUR FISCAL YEAR START.

SO WITH NO EXTRA FUNDS AND ALL OF OUR MITIGATING LAND LAWS, WE HAVE OBVIOUSLY A LOT GOING ON FINANCIALLY.

BUT IN OUR BUDGET THAT WAS APPROVED, OUR GENERAL OPERATING BUDGET BACK IN JUNE, A LOT OF THOSE ARE SIGNIFICANT AMONG THOSE 199 FUNDS ARE ACTUALLY GOING TO END UP BEING AN ESSER EXPENDITURES.

WE HAD THOSE IN THE BUDGET, BECAUSE WE DIDN'T KNOW EXACTLY HOW THE ESSER PLAN WAS GOING TO WORK AT THE TIME.

SO SOME OF THESE FUNDS WILL END UP BEING EXTRA EXPENDITURES AND NOT 199.

BUT IF YOU LOOK AT THE AMENDMENT, THERE'S REALLY NOT A LOT OF AMENDMENTS GOING ON THIS MONTH, BUT WE CAN ASSUME THAT OUR TOTAL EXPENDITURE WILL BE REDUCED ON A BUDGET SIDE, AND WHEN WE'RE [INAUDIBLE] WELL AND WE ARE HEALTHY FINANCIALLY, FROM THE STANDPOINT OF HAVING AN ADEQUATE MAP ON TO OPERATE PHYSICALLY THROUGH OUT THE YEAR.

[00:05:01]

I'LL BE HAPPY TO ENTERTAIN ANY QUESTIONS.

>> TRUSTEES, [INAUDIBLE]. TRUSTEE FOREMAN.

>> YEAH, I HOPE [INAUDIBLE]. THERE IT IS.

>> THERE YOU ARE.

JUST A COUPLE OF QUICK QUESTIONS.

I'M ASSUMING YOU'RE TALKING ABOUT THE 22,470,000 WHICH IS THE CHANGE IN BUDGET AT THE BUDGET AMENDMENT.

>> OKAY, THAT WAS [OVERLAPPING]

>> REFERRING TO THE CURRENT BUDGET.

>> YES MA'AM. I'M SORRY.

THAT WAS IN AUGUST AND THAT WAS OUR FIRST BUDGET AMENDMENT AND THOSE WERE THE MAJORITY DOES 15 MILLION IS APPROVED AS A TRANSPORTER, CHILD NUTRITION [INAUDIBLE] STUDENTS BEING AT SCHOOL.

IT'S CHALLENGING FOR THEM TO OPERATE AND MAKE A PROFIT IN THIS SCENARIO RIGHT NOW.

WE'VE ALLOCATED THAT WILL TRANSFER UP ALL OF WHAT THEY NEED BY THE END OF THE FISCAL YEAR.

THE OTHER WERE SOME BUDGET AMENDMENTS BACK IN AUGUST.

THAT'S WHAT MAKES UP THAT 22,470.

>> OKAY, MAYBE I'M MISSING SOMETHING.

YOU ARE ALLUDED TO SOME OF THE EXPENDITURES WOULD BE ESSER EXPENDITURE.

>> YES, MA'AM.

>> WHICH ONES OF THOSE ARE YOU REFERRING?

>> WELL, THERE HAVE BEEN DIFFERENT FUNCTIONS, BUT OF COURSE I WILL BE THE MITIGATING LINE ALSO.

WE HAD RIDE AT 33.8 MILLION IN THE BUDGET FOR MITIGATING [INAUDIBLE] LOSS AND 199.

ALL THOSE EXPENDITURES WILL END UP BEING ESSER EXPENDITURE, SO THOSE WILL NOT BE RECOGNIZED IN 199.

THERE ARE SOME OTHERS.

>> WHAT PART OF THIS WILL PROBABLY BE ESSER?

>> I WOULD ESTIMATE OF [OVERLAPPING].

>> IS THAT OF THE 60 MILLION?

>> IT'S PROBABLY GOING TO BE ABOUT 50 MILLION OF THE 1.8 BILLION THAT WE'LL MOVE TO ESSER.

THERE COULD BE MORE DEPENDING ON SOME OF OUR CONTINUITY OF OPERATIONS, BUT THAT IS NOT DECIDED YET.

AS WHAT WAS APPROVED IN JUNE ROUGHLY 50 MILLION.

>> I THINK WE'RE STILL MISSING EACH OTHER.

>> OKAY.

>> OF THE BUDGET AMENDMENT, THE BUDGET AMENDMENT [OVERLAPPING].

>> THE BUDGET AMENDMENT.

>> HOW MUCH OF THAT DO YOU ASSUME WILL BE ESSER FUND?

>> THAT WILL BE 199.

THOSE FUNDS. THOSE ARE APPROVED FOR 199.

>> OKAY, GO AHEAD.

>> FOR GENERAL OPERATING.

THAT'S CORRECT. WHAT'S BEING REQUESTED IN SEPTEMBER AND ALL OF THAT WILL REMAIN IN THE GENERAL FUND.

THERE WERE ITEMS THAT WERE INCLUDED IN THE ORIGINAL BUDGET THAT WE'LL MOVE TO ANSWER.

>> OKAY, THIS IS NOT.

>> THAT'S CORRECT. YES, MA'AM.

>> THAT'S WHAT I WAS TRYING TO SAY.

>> YES MA'AM.

>> NONE OF THIS WILL BE A PART OF.

>> NO, MA'AM [OVERLAPPING]

>> OKAY.

>> IF THERE WAS GOING TO BE ASKED WE WOULD ALREADY HAVE CODED IT THERE.

>> OKAY, ALL RIGHT.

>> WE WOULDN'T BE ADDED TO THE BUDGET TO MOVE IT LATER.

>> OKAY, THAT'S WHERE I WAS TRYING TO GET. THANK YOU.

>> ANY OTHER QUESTIONS, MR. LEWIS, TRUSTEE GARCIA?

>> GREAT. THANK YOU FOR YOUR REPORT.

WE'LL MOVE ON TO ITEM 5.4, REPORT ON THE STATUS OF THE MAINTENANCE WORK ORDER SYSTEM. JOANNE THOMPSON.

>> THANK YOU AND GOOD AFTERNOON.

DAVID BATES IS HERE WITH ME.

AS WE WORK THROUGH THIS, WE HAD SEVERAL MILESTONES THAT WE NEEDED TO MEET AS FAR AS REDUCING THE ROUTINE WORK ORDERS AND DAVID DID AN AWESOME JOB TO GET THAT ACCOMPLISHED.

WE'VE MET ALL OF THE MILESTONES FROM GOING INTO 25 PERCENT REDUCTION TO 50 PERCENT REDUCTION, WHICH IS WHAT WE REPORTED PREVIOUSLY.

BUT THE LAST MILESTONE WAS TO GET OUR ROUTINE WORK ORDERS WITH AN AVERAGE BUSINESS DAYS OF 15 DAYS.

AS OF JUNE 24TH, IT WAS 11 BUSINESS DAYS, WHICH IS HIGHLIGHTED THERE IN YELLOW.

HE CAN GO INTO MORE DETAIL ON VARIOUS ITEMS IF YOU WANTED TO.

AT THE TOP YOU CAN SEE THE NUMBER OF NEW REQUESTS AND THE WORKERS THAT WERE CLOSED DURING THE FISCAL YEAR IN ADDITION TO CATCHING UP.

THERE WERE A LOT OF ACTIVITIES THAT WENT ON DURING THE YEAR, OBVIOUSLY, WITH THE FREEZE AND VARIOUS THINGS AND SO THEY DID AN AWESOME JOB TO NOT ONLY KEEP UP WITH THOSE, BUT ALSO TO CLOSE THE GAP ON THE AGE.

I'D ENTERTAIN ANY QUESTIONS THAT YOU HAVE.

>> TRUSTEES, ANY QUESTIONS?

>> YES.

>> TRUSTEE FOREMAN.

>> I GUESS MY BIGGEST QUESTION IS, IS THERE A BREAKDOWN BETWEEN MAJOR WORK AND WORK ORDERS?

[00:10:05]

>> YES, AND THAT'S WHY YOU SEE SOME OF THOSE OLDEST DAYS AGED.

THAT'S LIKE POURING CONCRETE.

THAT'S MAJOR WORK ORDERS THAT ARE MORE PROJECT-BASED THAT TYPICALLY WE DO THROUGH A BOND.

THE ROUTINE IS REALLY WHY THAT MILESTONE NUMBER 3 WAS SO IMPORTANT TO US, BECAUSE IN ORDER TO RESPOND IN A TIMELY MANNER SOME OF THE MAINTENANCE WHEN WE JUST MAINTAIN SOMETHING THAT BOND HAS BUILT, THAT'S WHERE WE WANT TO BE AS FAST AS WE CAN.

THAT WAY WE CAN HAVE LONGEVITY OVER WHAT THEY HAVE INSTALLED.

BUT WHEN A CAMPUS PUTS IN A WORK ORDER FOR, I NEED A NEW PARKING LOT, THAT TAKES ME A LOT LONGER TIME, SO IT'S MORE PROJECT-BASED.

I HOPE THAT ANSWERED YOUR QUESTION. [LAUGHTER]

>> JUST A LITTLE BIT.

>> OKAY.

>> BECAUSE USUALLY, PROJECT-BASED IS A LONGER PERIOD OF TIME THAN JUST YOUR REGULAR MAINTENANCE WORK, CORRECT?

>> YES, MA'AM.

>> I GUESS WHAT I'M TRYING TO FIGURE OUT IS, IN THIS REPORT, DO WE HAVE PROJECT-BASED AND MAINTENANCE OR ARE THEY SEPARATED?

>> YES, SO THE OPEN WORK ORDERS ENCOMPASS BOTH; THE PROJECT AND THE ROUTINE.

WHERE I HAVE A TOTAL OF 2,779 THAT HAS BOTH MY ROUTINE IN IT AND MY PROJECT-BASE.

NOW, I CAN PULL THAT OUT AND GIVE YOU A SEPARATE REPORT.

>> THAT'S WHERE I'M GOING.

>> OKAY.

>> THERE NEEDS TO BE A BREAKDOWN BETWEEN YOUR REGULAR MAINTENANCE AND THEN YOUR PROJECT-BASED.

PROJECT-BASED, A LOT OF IT IS BOND MONEY AND OTHER BIG PROJECTS THAT DEPARTMENT HAS TAKEN ON.

BUT WHEN YOU FOLD IT IN WITH YOUR ROUTINE MAINTENANCE, THAT SKEWS THE WHOLE PICTURE.

FOR ME, I CAN'T SPEAK FOR ANYBODY ELSE, BUT FOR ME, REKINDLES TO [INAUDIBLE] WOULD MAKE IT MUCH EASIER TO UNDERSTAND AND COMPREHEND.

>> YES, MA'AM. I CAN DO THAT.

>> OKAY.

>> TRUSTEE GARCIA.

>> A QUESTION FOR YOU. I'M LOOKING AT THE WORK ORDER PERCENTAGE CLOSED, PARTICULARLY SOUTHEAST AT 69 AND YOU HAVE OTHER SITTING AT DIFFERENT PERCENTAGES.

WHAT EXPLAINS THAT DISCREPANCY?

>> SOUTHEAST DEFINITELY HAS MORE OF THOSE, FOR INSTANCE, SPRUCE [INAUDIBLE] THAT AREA.

THEY HAVE MORE OF THE PROJECTS THAT TAKE ME MORE MONEY TO COMPLETE INSTEAD OF A ROUTINE.

WE HAVE THE PART ON THE TRUCK OR WE HAVE THE PAINT.

BUT WHEN I HAVE TO GO PUT UP A WALL OR TEAR DOWN A WALL, IT DOES TAKE US LONGER, AND THEY HAVE MORE OF THOSE NEEDS IN THE SOUTHEAST.

>> GREAT.

>> TELL ME SOME OF THE THINGS THAT CONTRIBUTED TO REACHING THE MILESTONES THAT YOU'VE LISTED HERE, THE 25 PERCENT REDUCTION AND 50 PERCENT REDUCTION.

>> YEAH, WE WERE VERY INTENTIONAL.

WE TOOK A SCHOOL LEADERSHIP APPROACH TO MAINTENANCE AND WE LOOKED AT DATA ON A BI-WEEKLY BASIS WITH THE MANAGERS, WITH THE SUPERVISORS.

WE REALLY DRILLED INTO IT, SO WE WERE INTENTIONAL ABOUT MEETING OUR MILESTONES.

NOW, WE HAD SOME THINGS THROWN IN THERE LIKE COVID AND WINTER STORM AND STUFF LIKE THAT, THAT TOOK US OFF TRACK, BUT WE STAYED WITH THE INTENTIONALLY OF, THESE ARE GOALS AND WE'RE GOING TO MEET THESE MILESTONES.

THEN WE WOULD HELP.

WE'D TAKE THE TOP 10 OLDEST FOR EACH QUAD AND THEN WE'D SIT DOWN TOGETHER AND FIND OUT WHY ARE THESE? WHERE'S OUR CROSSOVER? HOW CAN GROUNDS HELP MAINTENANCE COMPLETE THIS? WE TOOK A VERY INTENTIONAL APPROACH TO CLEAN UP SOMETHING THAT NEEDED TO BE CLEANED UP A LONG TIME AGO.

>> MR. BATES IS BEING VERY HUMBLE WHEN IT WAS ALL HIS DOING.

HE HAS PUT TOGETHER THINGS CALLED WHAT HE LEARNED IN SCHOOL LEADERSHIP LIKE A PROFESSIONAL LEARNING COMMUNITY, AND PUT PEOPLE FROM DIFFERENT DEPARTMENTS THERE TOGETHER TO TRY TO SOLVE PROBLEMS AND HE'S TAKEN THAT MODEL AND TRANSFERRED IT OVER TO OPERATIONS.

THAT'S WHY YOU'RE SEEING THE IMPROVEMENT.

>> THAT'S WONDERFUL. THANK YOU.

APPROXIMATELY, WHAT'S THE SIZE OF YOUR MAINTENANCE AND FACILITY SERVICE DEPARTMENT?

>> SURE. I GOT 187 EMPLOYEES THAT FILL THESE WORK ORDERS ON A DAILY BASIS.

>> ALL RIGHT, THANK YOU.

>> YEAH.

>> MS. STEVENS, MR. LEWIS, ANY QUESTIONS?

>> WELL, I WOULD JUST OFFER A COMMENT TO BEGIN WHERE THE SUPERINTENDENT LEFT OFF.

CONGRATULATIONS ON THIS PROGRESS.

THIS IS A FAR CRY FROM WHERE THIS WAS EVEN A YEAR AGO.

IT'S INCREDIBLY IMPRESSIVE THAT YOU AND YOUR TEAM HAVE BEEN ABLE TO TURN THIS DEPARTMENT AROUND, SO KUDOS TO YOU, MR. BATES AND THANK YOU FOR YOUR REPORT.

>> ALL RIGHT. WE'RE ON TO ITEM 5.5, CONSIDERING [INAUDIBLE] ACTION TO ACCEPT AND MAKE FINAL THE INTERIM OF THE INTERNAL AUDIT REPORTS.

DO I HAVE A MOTION TO ACCEPT AND MAKE FINAL THE INTERNAL AUDIT REPORTS?

[00:15:02]

>> MARK TUPPER.

>> I WILL SECOND TO PUT IT ON THE FLOOR, AND IT HAS BEEN MOVED BY TRUSTEE GARCIA AND SECONDED BY TRUSTEE MARSHALL THAT WE ACCEPT AND MAKE FINAL THE INTERNAL AUDIT REPORTS.

WE'LL LET YOU KICK OFF THE DISCUSSION HERE.

>> THANK YOU, TRUSTEE MARSHALL, TRUSTEES GARCIA, AND FOREMAN, SUPERINTENDENT, AND [INAUDIBLE] I HAVE FIVE REPORTS TO PRESENT HERE IN OPEN SESSION TODAY.

THEY'RE IN YOUR PACKET.

FIRST ONE IS AUDITIVE SUPERINTENDENT EXPENDITURES TRAVEL.

I WOULD SAY TRAVEL EXPENDITURES FOR THE YEAR.

WE'VE REVIEWED THOSE ON A QUARTERLY BASIS, COMPILED ALL THE INFORMATION, CHECKED FOR MATH ACCURACY, PROPER CODING, AND ADEQUATE SUPPORTING DOCUMENTATION.

WE FOUND NO EXCEPTIONS IN THE TRAVEL REIMBURSEMENT FOR THE YEAR 2021.

I'LL ANSWER ANY QUESTIONS IF THERE ARE ANY.

>> TRUSTEE FOREMAN.

>> JUST ONE QUICK QUESTION.

ON PAGE 4 UNDER THE OBJECTIVE, YOU TALK ABOUT EXPENDITURES THAT WERE ALLOWABLE AND REASONABLE.

WHAT METHODOLOGY DID YOU USE TO DETERMINE WHAT'S REASONABLE?

>> ALLOWABLE, OBVIOUSLY, UNDER OUR TRAVEL POLICY.

THERE WAS DOCUMENTATION.

IF THERE WAS A MEETING, A CONFERENCE, AND WE WOULD LOOK FOR THAT SUPPORTING DOCUMENTATION TO ESTABLISH THAT REASONABLENESS.

NOW, REIMBURSEMENT GUIDELINES ARE ON THE FEDERAL REIMBURSEMENT RATES, SO THERE'S A REASONABLENESS TO HOTEL IN THAT AREA IF IT'S OUT-OF-STATE OR IN STATE.

THEY HAVE THOSE PER DIEM RATES FOR HOTELS AND FOR MEALS.

THAT WOULD BE ANOTHER EXAMPLE OF REASONABLENESS.

>> OKAY. ALL RIGHT, THANK YOU.

>> SECOND REPORT I'LL MOVE TO IS IN THE CAPITAL MANAGEMENT, AND PAYROLL, AND SHARED RESPONSIBILITY, OTHER OVERTIME AND SUPPLEMENTAL PAY.

RESULTS OF THIS AUDIT, WE TESTED TWO SAMPLES OF OVERTIME, ONE OF OVERTIME, ONE OF SUPPLEMENTAL PAY.

THROUGH OUR TEST WORK, WE FOUND THAT WE HAVE THE GOOD CONTROLS AND STRONG CONTROLS OVER WHAT I CALL THE BACK END, WHICH IS PAY RATES.

TIMECARD IS BEING APPROVED THROUGH THE PROCESS.

THE EXCEPTION AND THE RECOMMENDATION WE MADE IS ON THE FRONT END, WHAT WAS CALLED AUTHORIZATION.

WE FOUND 13 OR 45, SO 28 PERCENT, AND OUR POLICY REQUIRES AUTHORIZATION.

THERE IS AN EXCEPTION THAT YOU CAN AUTHORIZE IT AFTER, SAY EMERGENCY CALL OUT.

YOU'RE GOING TO AUTHORIZE THAT OVERTIME AFTER THE FACT, BUT THESE ARE EXCEPTIONS WE FOUND NO AUTHORIZATION.

THE GOOD THING IS ON THE BACK END, THEY'RE GOING TO REVIEW EVERY TIME CARD.

YOU'RE GOING TO KNOW IF SOMEONE WORKED OVERTIME AND YOU'RE GOING TO PROVE IT.

IF THEY WORKED IT, THEN WE HAVE TO PAY THEM.

OUR POLICY SAYS PRE-AUTHORIZED SHOULD BE AUTHORIZED.

I THINK WE HAVE TO THINK THROUGH WHAT THIS AUTHORIZATION POLICIES SHOULD BE, AND OUR RECOMMENDATION WAS TO REVIEW AND CONSIDER REVISING IT SO THAT IT FITS INTO HOW OUR BUSINESS WORKS.

I COULD GIVE YOU SOME MORE THOUGHTS ON THAT, BUT I WOULD RATHER ENTERTAIN QUESTIONS IF YOU HAD ANY.

IT'S JUST ONE SIZE, DOESN'T FIT ALL.

>> I'M SORRY. CAN YOU GO THROUGH AN EXAMPLE? THE REASON I ASKED THAT QUESTION IS YOU MIGHT HAVE IN SOME SITUATIONS, A MAINTENANCE WORKER THAT'S ASKED TO WORK OVERTIME.

THEY MIGHT NOT GET PRE-APPROVAL FOR THAT BECAUSE THE MAINTENANCE WORKER IS ASKED AT THE LAST MINUTE AND YOU NEED THAT WORKER.

>>ABSOLUTELY.

>> WHAT YOU'RE SAYING IS THAT THEY GOT TO HAVE PRE-APPROVAL FOR EVERY TIMECARD THAT HAS OVERTIME BECAUSE THAT BECOMES SOMEWHAT CUMBERSOME TOO, TO TRY TO KEEP UP WITH THAT, ESPECIALLY WITH 230 SCHOOLS.

[00:20:01]

>> ABSOLUTELY. YES, MA'AM. THE POLICY SAYS PRE-APPROVAL.

MANAGEMENT WROTE THE POLICY.

>> MANAGEMENT DON'T WRITE POLICY OR THE VICE POLICY.

>> CORRECT. YES, MA'AM. THE POLICY THAT I WAS APPLYING, THE STANDARD TO IS THE CURRENT POLICY.

THAT'S A GOOD EXAMPLE THAT, ONE, YOU WANT THE JOB DONE.

IF THE PIPE BROKE, YOU NEED TO GET IT FIXED.

YOU COULD AUTHORIZE THAT AFTER THE FACT.

THE EXCEPTIONS HERE HAD NO AUTHORIZATION.

BUT IN THAT SITUATION, SINCE THE TIMECARD IS APPROVED ON THE BACK END, THAT DEPARTMENT THEORETICALLY COULD BE AUTHORIZED TO HAVE $100,000 WORTH OF OVERTIME, SO YOU COULD MANAGE THAT SPECIFIC NEED ONE WAY AND YOU COULD MANAGE OTHER OVER TIME WITH PRE-APPROVAL POLICY.

I'M SUGGESTING WE HAVE A MORE FLEXIBLE APPROACH.

THE POLICY DOESN'T ALLOW FOR IF SOMEONE PUNCHED IN, SAY IT WAS A ROUNDING AND THEY PUNCHED OUT LATE, THEY'RE STILL GOING TO GET PAID BECAUSE IT'S OVERTIME.

IF WE NEED TO ADJUST THE ROUNDING OF THE TIME CLOCK, IF IT WAS A HALF HOUR A DAY FOR A WHOLE WEEK, THAT'S TWO AND A HALF HOURS THEY'RE GOING TO GET PAID OVERTIME.

>> TELL ROBERT TO COME UP HERE, MY BEST FRIEND.

>> I INVITED MR. ABEL.

>> MY BEST FRIEND, HELP ME.

>> SOME EXAMPLES, FOR EXAMPLE, WOULD BE FOOD AND CHILD NUTRITION.

THEY'RE AT WORK, SOMEBODY GETS SICK AND GOES HOME.

IT'S NOT POSSIBLE.

THEY'RE GOING TO HAVE TO STAY LATE TO DO THE EXTRA CLEANING FOR THE PEOPLE WHO WENT HOME SICK.

THEY DON'T HAVE TO DO THE EXTRA PREP, SO KIDS CAN HAVE THINGS READY FOR BREAKFAST.

IT'S NOT FEASIBLE TO DO THAT PRE-APPROVAL BECAUSE LIKE YOU'RE SAYING, WE NEED THOSE EMPLOYEES TO DO, THEY'RE DOING WHAT THEIR SUPERVISORS ASK.

THEY'RE JUST NOT THAT FORMED.

WHAT WE'RE LOOKING TO DO IS CREATE MAYBE SOME FLEXIBILITY FOR CERTAIN DEPARTMENTS THAT PRE-APPROVALS AND EMERGENCIES TO WHERE THEY CAN GET THAT FORM ON THE BACK END.

RIGHT NOW, IF YOU LOOK AT THE PAYROLL MANUAL, IT ACTUALLY HAS A CLAUSE IN THERE THAT SAYS, LET ME MAKE SURE I QUOTE JUST RIGHT.

>> YOU KNOW I'LL GO READ IT, SO YOU BETTER GET IT RIGHT.

>> I KNOW. [LAUGHTER] IN THE PAYROLL MANAGEMENT, UNDER APPROPRIATE CIRCUMSTANCES OVERTIME CAN BE AUTHORIZED AFTER THE TIME WORKED.

BUT WHEN YOU GO TO THE DEA REGULATION, IT SAYS YOU MUST NOTIFY YOUR SUPERVISORS IN ADVANCE.

WE HAVE A LITTLE BIT OF DISCREPANCY THERE THAT WE'RE GOING TO TRY TO ADDRESS THROUGH THAT REGULATION.

>> THAT MAKES MORE SENSE. THANK YOU.

>> THANK YOU. ANY OTHER QUESTIONS, COMMENTS?

>> CAN I JUST FOR FUN MAKE DR. WILSON COME UP HERE?

>> [LAUGHTER] NO, YOU CAN'T. MOVING ON.

>> TRUSTEES, THE NEXT REPORT IS CAMPUS STANDARDIZED TESTING.

I WOULD SAY THIS IS THE FIRST YEAR OF ONLINE, COMPUTER-BASED TESTING WITH SOME IN-PERSON TESTING.

WE SENT OUT A RANDOM SAMPLE OF STAFF TO OBSERVE AND GLAD TO REPORT WE HAD NO RECOMMENDATIONS, ONLY MINOR SUGGESTIONS.

WE FOUND NO EVIDENCE TO BELIEVE THERE WAS ANYTHING IMPROPER GOING ON, BACKPACKS BEING UNDER A DESK OTHER THAN THE CORNER.

IF SOMEONE WAS DIGGING THROUGH THE BACKPACK, WE WOULD HAVE MADE AN ISSUE OF THAT BUT THESE WERE MINOR THINGS WE'VE RELATED TO THE TESTING SECTION.

BUT OVERALL, IT WENT VERY WELL.

>> GREAT, QUESTIONS.

>> YEAH.

>> TRUSTEE FOREMAN.

>> WAS THIS JUST RELATED TO THE STAAR TESTING?

>> TO STAAR TESTING, YES MA'AM.

>> I THINK WE NEED TO SAY THAT IS STAAR TESTING BECAUSE WE DO A LOT OF TESTS.

WE HAVE A CALENDAR OF ABOUT 25 PAGES WITH TESTING, AND THERE ARE A LOT OF MAP TESTS.

>> IN THE BACKGROUND, IT DOES SPECIFICALLY STAY STAAR.

I COULD ACTUALLY MOVE THAT UP INTO FRONT TO BE VERY CLEAR.

>> WE NEED TO BE CLEAR ON WHICH TESTING WE'RE TALKING ABOUT.

>> WE HAVE OTHER QUESTIONS, COMMENTS?

>> THANK YOU. NEXT AUDIT IS [INAUDIBLE] PROGRAM.

I'VE BEEN INVOLVED IN THIS OVER THE LAST THREE YEARS THAT I'VE BEEN HERE.

WE DID IDENTIFY SOME AREAS WHERE WE MADE SOME RECOMMENDATIONS.

HOWEVER, DOING OUR TESTING OF ASSETS OR EQUIPMENT, NINE OUT OF 360 ITEMS, THAT'S ONLY 2.5 PERCENT.

[00:25:02]

OBVIOUSLY, WE'D LIKE IT TO BE A ZERO, BUT THAT IS VERY LOW.

WE CONSIDER A FIVE PERCENT ERROR RATE PLUS OR MINUS, DEPENDING ON THE AREA WE'RE WORKING IN.

SINCE THESE ARE FEDERAL DOLLARS, WE STILL HAVE TO REPORT IT.

OUR RECOMMENDATION IF THEY CAN'T BE FOUND AFTER A CERTAIN AMOUNT OF TIME, THEN THE PROGRAM SHOULD BE REIMBURSED.

I BELIEVE THAT'S [INAUDIBLE] VALUE.

IN THE REPORT, THE NUMBER THAT WAS MENTIONED WAS I THINK THE ORIGINAL PURCHASE PRICE.

IT COULD BE A SMALL AMOUNT OF MONEY BUT WE HAD AN ITEM LAST YEAR, AND WE DID THE SAME.

WE RECOMMEND THE SAME THING, JUST REIMBURSE THE PROGRAM.

>> SECOND ISSUE WAS THAT THERE WAS AN AREA IDENTIFIED WHERE THE FUNDING REQUEST NUMBERS HAD BEEN MISAPPLIED.

WE HAD THE WRONG ONES ON SOME EQUIPMENT ITEMS AND AT THIS POINT, THEY WERE NOT FULLY CORRECTED.

WE ASK THAT THEY GO BACK AND FIX IT.

THE ONE ISSUE ON CHILD INTERNET PROTECTION ACT TESTING, I WANT TO BE VERY CLEAR THAT WE HAVE OUR FILTERS AND WE HAVE MECHANISMS IN PLACE.

WE ACTUALLY HAVE AN INTERNAL POLICY THAT ASKED THAT CERTAIN ASSETS BE PHYSICALLY IDENTIFIED AND LOOKED AT WHEN THEY VISIT CERTAIN SCHOOLS.

THERE'S A NUMBER THAT THEY WANT TO DO EVERY YEAR.

DUE TO COVID AND PHYSICAL ACCESS AT THE SCHOOLS, THEY WEREN'T ABLE TO COMPLETE THAT PIECE.

BUT I DID EMPHASIZE THAT ENHANCEMENT AND AN INTERNAL POLICY, NOT AT FEDERAL E-RATE REQUIREMENT THAT THEY EXAMINE THOSE SPECIFIC MACHINES.

I'D ENTERTAIN ANY QUESTIONS.

>> DID ANY E-RATE DOLLARS GO FOR SPECIFIC EQUIPMENT? IF SO, DO WE KNOW WHAT EQUIPMENT? THAT WILL BE [OVERLAPPING] AND MAYBE HE CAN HELP ME OUT.

>> I KNOW THERE WERE SOME CABLING PROJECTS THAT, DO YOU KNOW OF HIM LAST YEAR?

>> YEAH, WE FILE FOR E-RATE REIMBURSEMENT FOR ELIGIBLE SERVICES EVERY YEAR.

>> YEAH. WE KNOW THAT, BUT I JUST I'M TRYING TO FIGURE OUT WHICH ONES YOU FILED FOR.

>> YES. LAST YEAR WE FILED FOR REIMBURSEMENT ON OUR INTERNET SERVICES, AS WELL AS SOME NETWORK EQUIPMENT.

THOSE ARE SWITCHES AND ROUTERS IN THE SCHOOLS, AS WELL AS CABLING PROJECTS.

THE LAST ONE WOULD BE THE BACKUP BATTERY SYSTEMS THAT WE USE AT THE SCHOOL CAMPUSES.

I THINK THOSE ARE ALL THE CATEGORIES THAT WE FILED FOR LAST YEAR.

>> SO NO DEVICES?

>> NO, MA'AM. DEVICES ARE NOT E-RATE ELIGIBLE PIECE OF EQUIPMENT.

>> ALL RIGHT. THANK YOU.

>> PERSONAL DEVICE SERVERS AND ROUTERS WOULD BE THE CORRECT? THE BIGGER EQUIPMENT?

>> THAT'S CORRECT. NETWORK EQUIPMENT IS GENERALLY ELIGIBLE.

>> DOES THAT ANSWER YOUR QUESTION, TRUSTEE.

>> YEAH, PRETTY MUCH.

>> THANK YOU.

>> THANK YOU JOHN.

>> MR. LEWIS.

>> MR. ROBERT, ON FINDING TO KNOW WHAT INDICATOR THERE WAS NOT ADEQUATE DOCUMENTED TO BE QUARTERLY TEST.

IN THE CONDITION THAT YOU SAY THAT THE SOLUTIONS ARCHITECTS STATED THEY DID DO HAVE FOUR EMPLOYEES MONITORING INFORMATION SECURITY DAILY, DID YOU OR YOUR STAFF LOOK INTO THAT PROCESS AND CONFIRM THAT THEY INDEED WE'RE PROVIDING KIND OF ONGOING MONITORING OF THAT.

>> YES, WE DID. WE DID A WALK-THROUGH OF THAT FILTER THAT BLOCKS CERTAIN ACCESS.

WE ACTUALLY TESTED CERTAIN KNOWN SITES THAT SHOULD NOT HAVE ACCESS TO.

THOSE ARE THOUSANDS AND THOUSANDS OF SITES THAT ARE UPDATED EVERY DAY WITH THIS SOFTWARE THAT UTILIZE.

THAT'S THE FEDERAL REQUIREMENT THAT IS DONE.

I WANTED TO BE CLEAR ALL THAT WAS BEING DONE.

IT WAS A ADDITIONAL PIECE THAT WE HAVE INTERNALLY TO PHYSICALLY TEST EQUIPMENT, LAPTOPS WHEN WE GO OUT TO CAMPUSES.

BECAUSE OF COVID AND WHAT HAVE YOU WE PHYSICALLY JUST COULDN'T DO ALL THAT THIS PAST YEAR.

>> ALL RIGHT THANK YOU.

>> DO YOU WANT TO DO THAT FOLLOW UP?

[00:30:01]

>> YES, SIR.

>> IN THE SECTION.

>> WE'LL DO THAT THE BIG PULL OUT SHEET.

SORRY, I HAD TO GIVE YOU ALL 15 PAGES, BUT I DID WANT TO POINT OUT THAT IT WAS ALL WORK THAT WE DID THIS SUMMER ON THE FOLLOW-UP, 84 OF 85, LOT OF WORK ON OUR SIDE, LOT OF WORK ON MANAGEMENT SIDE TO RESOLVE THESE OUTSTANDING ISSUES, KEEP IT TIMELY AND IN A TIMELY MANNER.

THE ONLY ONE I THINK IT COULD BE RESOLVED GOING FORWARD, BUT WE HAD A SAFE THAT WASN'T FUNCTIONING.

THE WILL SAYS LOCK YOUR MONEY IN A SAFE, NOT IN A FILE CABINET OR IN A ROOM, REQUIRES A SAFE I'M GONNA STAND BY THAT.

LET'S GET THE SAFE FIXED AND THAT'LL BE IN COMPLIANCE.

>> MR. HAUTE, MR. BATES ARE YOU GUYS GOOD WITH FIXING THAT TOMORROW? ANY QUESTIONS? GREAT.

THAT'S ALL OF YOUR OPEN SESSION REPORTS, CORRECT?

>> YES, SIR.

>> ALL RIGHT. WELL, WE HAVE A MOTION ON THE TABLE, BUT IF THE OTHER TRUSTEES CONSENT, I'M GOING TO TABLE THAT MOTION AND TAKE THE AGENDA OUT OF ORDER BECAUSE I BELIEVE YOU HAVE TWO OTHER REPORTS THAT NEED TO BE COVERED IN CLOSED SESSION BEFORE WE VOTE ON THOSE.

ANY OBJECTION TO MOVING THE CLOSED SESSION UP.

ALRIGHT, SO WE'LL TABLE THAT MOTION, VOTE ON IT WHEN WE COME BACK.

NOW WE'RE GOING TO TAKE THE AGENDA OUT OF ORDER AND MOVE TO ITEM SIX, CLOSED SESSION.

THE BOARD WILL NOW RETIRE TO CLOSED SESSION PURSUE INTO TEXAS GOVERNMENT CODE SECTION 551 CONCERNING THE FOLLOWING SECTIONS.

THE PUBLIC AND STAFF ARE WELCOME TO STAY CONNECTED TO ZOOM WHILE THE BOARD LEAVES THE MEETING TO ATTEND THE CLOSED SESSION, THE PUBLIC PORTION OF THE MEETING WILL RESUME AFTER CLOSED SESSION.

THE CODE SECTIONS CONCERNING ANY AND ALL PURPOSE PERMITTED BY THE ACT, INCLUDING, BUT NOT LIMITED TO THE FOLLOWING SECTIONS, 551.076 TO DELIBERATE ONE, THAT DEPLOYMENT OR SPECIFIC OCCASIONS FOR IMPLEMENTATION OF SECURITY PERSONNEL OR DEVICES AND TWO TO DISCUSS THE SECURITY AUDIT.

THE TIME IS NOW 5:02 AND WE ARE IN CLOSED SESSION.

I EXPECT THAT THIS WILL TAKE 15 MINUTES, I'M I RIGHT?

>> TOPS, YES SIR.

>> GREAT.

[BACKGROUND]

[00:37:09]

[FOREIGN]

[00:48:38]

>> THE TIME IS NOW 5:19 [NOISE] AND WE ARE BACK IN OPEN SESSION.

[00:48:44]

THE BOARD TOOK NO ACTION IN CLOSED SESSION.

WE REMAIN BACK ON ITEM 5.5.

WE HAVE A MOTION AND A SECOND ON THE TABLE TO ACCEPT AND MAKE FINAL THE INTERNAL AUDIT REPORTS.

ALL THOSE IN FAVOR, PLEASE CAST YOUR VOTES BY RAISING YOUR HAND.

>> MOTION PASSES 3-0.

>> ALRIGHT. YOU HAVE JUST ADOPTED THE MOTION TO ACCEPT TO MAKE FINAL THE INTERNAL AUDIT REPORTS, WE'RE ONTO ITEM 5.6, THE ANNUAL AUDIT COMMITTEE REPORT.

>> TRUSTEE MARSHALL, TRUSTEES, SUPERINTENDENT, WE'VE PREPARED THE ANNUAL AUDIT COMMITTEE REPORT TO THE BOARD AS ACQUIRED BY THE AUDIT COMMITTEE CHARTER, INCLUDES THE WORKINGS OF THE COMMITTEE THROUGH THE YEAR OR THE FIVE MEETINGS THAT WERE HELD, THE OVERSIGHT FOR THE AUDIT, DEPARTMENT MEMBERS THAT WERE PRESENT IN ATTENDANCE.

I WOULD PRESENT THAT FOR YOUR REVIEW AND APPROVAL.

I WOULD POINT OUT THAT THE CHARTER REQUIRES THIS BE PRESENTED TO THE BOARD.

WHATEVER MECHANISM THAT IS, I'M NOT EXACTLY SURE, BUT IT'S HERE AND IT'S POSTED ON THE BOARD DOCS, SO EVERYONE CAN SEE IT.

I DO ENTERTAIN ANY QUESTIONS IF THERE ARE ANY.

[00:50:02]

>> ONE QUICK POINT OF CLARIFICATION.

I DON'T BELIEVE THAT THIS ITEM DOES REQUIRE APPROVAL BY THE COMMITTEE.

I COULD BE WRONG [INAUDIBLE] IS THAT CORRECT?

>> IT SAYS ACCEPTANCE [OVERLAPPING] ON PAGE 30.

[BACKGROUND]

>> NO, THE ANNUAL AUDIT COMMITTEE REPORT, I THINK IT JUST HAS TO BE PRESENTED TO THE AUDIT COMMITTEE AND THE BOARD.

THERE'S NO ACTION ITEM ON THIS PARTICULAR AGENDA ITEM.

>> I BELIEVE [INAUDIBLE]

>> GIVEN THAT CLARIFICATION, ARE THERE ANY QUESTIONS? GREAT. WE'LL MOVE ON TO ITEM 5.7, REPORT ON THE STATUS OF THE ODDEST AUDIT PLAN AND SUFFICIENCY OF DEPARTMENT RESOURCES.

>> I HAVE TWO REPORTS BEHIND THAT TAB 5J1 IS THE FINAL AUDIT PLAN STATUS FOR 2021.

YOU CAN SEE WE'VE SPENT ALMOST 22,000 HOURS ON LAST YEAR'S AUDIT PLAN.

I BELIEVE I'VE REPORTED IN THE MONTHLY UPDATE WE HAD COMPLETED ALL AUDIT EXCEPT ONE AND THAT'S IN DRAFT REPORT AS WE SPEAK.

IT SHOULD BE COMPLETED PRETTY WELL.

TAKEN INTO ACCOUNT, TURNOVER, COVID, ETC, WE PREPARED AN AUDIT PLAN.

MOVE TO THE NEXT REPORT, '21 '22 AUDIT PLAN, THAT INCLUDES OVER 22,000 HOURS IN THE BUDGET.

WE'RE MOVING VERY QUICKLY ON THESE PROJECTS.

WE'RE ALL ON THE '22 AUDIT PLAN PROJECTS NOW.

IN THE PREVIOUS REPORT, THE ANNUAL REPORT HAD AN ORG CHART SUBMITTED IN THERE.

I DO HAVE TWO OPEN POSITIONS.

WE'RE WORKING HARD TO FILL THOSE.

BUT I FEEL LIKE WE HAVE ADEQUATE RESOURCES.

BUT I WOULD LIKE TO COMMEND MY TEAM BECAUSE LIKE EVERYONE ELSE, WE WORKED IN A COVID ENVIRONMENT.

WE ALSO UPGRADED OUR AUDITING SOFTWARE INTO THE NEW VERSION.

TOOK A LOT OF WORK AND RESOURCES ON OUR PART.

WE'VE BEEN PREPARING FOR THE QUALITY ASSURANCE REVIEW THAT WE RECEIVED EMAIL ABOUT TO CLICK THE SURVEY.

A LOT OF OTHER THINGS THAT HAD TO GET DONE THIS YEAR IN A TOUGH COVID YEAR.

BUT I WOULD LIKE TO SAY IT'S GOING VERY WELL.

WE'RE ON TRACK, CLOSED OUT '21 AND MOVING INTO '22 WITH A LOT OF STEAM AND A LOT OF ENTHUSIASM.

I'LL ANSWER ANY QUESTIONS.

>> THANK YOU AND KUDOS TO YOU IN YOUR TEAM.

ANY QUESTIONS OR COMMENTS? WE'LL MOVE ON TO ITEM 5.8, REPORT ON THE DISTRICT HOTLINE.

>> HOW ON REPORT IS PRESENTED FOR YOUR REVIEW.

YOU CAN SEE A SCHOOL OPEN BACK UP THROUGH THE SPRING.

LAST SPRING CASES WENT UP.

WE HAD A LOT OF WORK CLOSED DOWN AND CLOSING THESE.

YOU CAN SEE THAT THE INVENTORY REPORT, THE LAST PAGE IS 44 OPEN.

I HAVE SEVEN, BUT THREE OF THOSE HAD BEEN CLOSED SINCE THIS WAS PRINTED OVER A WEEK AGO.

WE'RE REALLY DOWN TO FOUR.

EVERYTHING ELSE.

PSO GETS A HIGH PERCENTAGE OF THESE ARE MORE ADMINISTRATIVE.

MINE RELATE TO MORE SPECIFIC ITEMS OF EITHER RECORD TAMPERING OR SOME OTHER FINANCIAL ASPECT OF IT.

WE DO HAVE A VERY SMALL NUMBER.

I THINK WE'VE BEEN ON TASK AND ON TARGET OVERALL ON MANAGING THE HOTLINES AND WORKING THESE CASES, AND 453 CLOSED THIS QUARTER.

IT'S A LOT. I'LL ANSWER ANY QUESTIONS.

>> ON AGING, THE OLDEST ONE IS FOR MARCH OF 2021.

>> THAT WAS ONE THAT WAS CLOSED.

>> WHAT ABOUT THE APRIL ONE? THAT'S NOT IN YOUR DEPARTMENT.

>> I'LL HAVE TO CHECK ON THOSE.

I KNOW OURS MOVED INTO MUCH MORE CURRENT.

>> OKAY. ANY QUESTIONS? TRUSTEE FOREMAN.

>> YES. I'M JUST TRYING TO GET AN UNDERSTANDING OF EXACTLY HOW MANY DO WE STILL HAVE OPEN.

>> THE THIRD PAGE, IT SHOWS THE AGING.

THERE'S 44 OPEN AND IT SHOWS IT BY DEPARTMENT, WHO THEY ARE GOING SIGN TO.

>> IF I LOOK AT PAGE TWO OF TWO, YOU SHOW THESE ARE HOTLINE REPORTS,

[00:55:02]

I'M ASSUMING THAT THIS IS EVERYTHING.

>> YES MA'AM, EVERYTHING.

>> YOU SHOW ASSIGNED 439 CLOSED 453.

THE DIFFERENCE BETWEEN THAT IS 30.

>> [OVERLAPPING] I SIGNED IN THE PERIOD, YES, MA'AM.

THERE WAS A NUMBER OF SIGNED WE HAD CASES FROM THE PREVIOUS QUARTER THAT ROLLED FORWARD.

>> SO HOW MANY CASES DID YOU HAVE ROLLED FORWARD BECAUSE FROM WHAT I JUST HEARD, THESE ARE ALL NEW CASES.

HOW MANY CASES DID YOU HAVE THAT ROLLED FORWARD?

>> 14.

>> I'M TRYING TO DO THAT MATH, I BELIEVE THAT'S CORRECT, 14. [INAUDIBLE] THE SQUEEZE.

>> WHAT I JUST HEARD WAS THEY WERE ALL RELATIVELY NEW SINCE MARCH, BUT WE HAVE 14 AND WHAT IS THE OLDEST ONE OF THOSE 14? [NOISE]

>> THEY ROLLED FORWARD BUT HAVE NOW BEEN CLOSED? [NOISE]

>> [OVERLAPPING] THE ONLY ONE THAT ROLLED, THAT WOULD BE INCLUDED WOULD BE ONE FROM MARCH, ONE FROM APRIL, THREE FOR MAY.

JUNE, JULY, AND AUGUST WOULD BE THE MOST CURRENT QUARTER.

THE MARCH, I CLOSED THAT MYSELF.

THAT WAS OUR INVESTIGATION THAT GOT VERY INVOLVED.

I THINK YOU'RE FAMILIAR WITH THAT ONE.

>> IS JUST SOMETHING WRONG WITH THE NUMBERS.

IT SHOULD BE EASY FOR ME TO LOOK AT THIS AND UNDERSTAND HOW MANY HAS BEEN CLOSED, HOW MANY ARE STILL OPEN, WHAT IS AGED, AND WHAT IS NOT.

[OVERLAPPING] IT IS JUST ME. LET ME FINISH.

NO HELPING. [LAUGHTER] I'M TALKING DIRECTLY TO HIM.

IT WOULD BE EASIER FOR ME TO HAVE A UNDERSTANDING, JUST LOOKING AT NUMBERS.

HOW MANY YOU'VE CLOSED, HOW MANY STILL OPEN? EVEN WHEN YOU SAY THAT YOU'VE CLOSED SOME SINCE THIS DOCUMENT, I SHOULD BE ABLE TO FOLLOW THAT NUMBER PRETTY EASILY WITHOUT HAVING TO TRY TO FIGURE OUT EXACTLY WHAT IT IS.

I SHOULD BE ABLE TO UNDERSTAND THE AGING WITHOUT TRYING TO FIGURE IT OUT. DOES THAT MAKE SENSE?

>> YES, MA'AM. FORTY-FOUR OPEN.

IF WE LOOK AT THE SECOND PAGE, THERE WOULD BE 14 THAT CAME IN FROM THE PRIOR QUARTER ALONG WITH 439 NEW ONES.

THAT'S WHAT WE WORKED AND ASSIGNED.

IF WE CLOSE 453, THAT STILL LEAVES US 44 OPEN.

THAT TIES TO THE VERY LAST PAGE.

THERE'S A THIRD PAGE.

THE OLDEST ONE THAT WAS OF THE 44 CAME IN MARCH.

I CLOSED THAT FINAL REPORT OUT THIS WEEK.

>> PSO HAS CLOSED ALL OF THOSE THAT THEY HAVE ALSO?

>> THEY HAVE ZERO FROM MARCH, ZERO FROM APRIL, ZERO FROM MAY.

[OVERLAPPING].

>> [INAUDIBLE] OUTSTANDING.

>> THEY HAVE 30, BUT IT'S ALL FROM JUNE, JULY, AUGUST.

[NOISE]

>> IT JUST SEEMS LIKE THERE'S A SIMPLER WAY TO PUT THIS IN SO THAT IT'S MUCH EASIER TO UNDERSTAND.

>> IT IS A ROLLING TARGET AND EVERY DAY IT ROLLS SOMETHING NEW COMES IN AND [OVERLAPPING] WE CLOSE AN OLD ONE.

>> I GET IT.

>> BUT I THINK THE KEY IS, I HAD THE OLDEST ONE, IT WAS IN MARCH. CAME IN, IN MARCH.

THERE WERE TWO OF THEM RELATED ONE'S IN MARCH AND ONE IS MAY.

THOSE TWO CASES WERE RELATED.

I'VE CLOSED THE OLDEST ONE, AND THREE OF THE SEVEN HAVE BEEN CLOSED [OVERLAPPING]

>> GO BACK AND LOOK AT PAGE TWO, AND WE DON'T HAVE TO DEBATE IT NOW.

BUT WHEN YOU SAY 439 ASSIGNED, 44 OPEN, 453 CLOSED.

I'M GOING TO LOOK AT THE ASSIGNED AND THEN I'M GOING TO LOOK AT STATUS CLOSED.

THAT IS A DIFFERENT NUMBER.

IT'S JUST SOMETHING YOU CAN WORK ON TO TRY TO MAKE THAT [OVERLAPPING]

>> COULD THERE BE A BEGINNING INVENTORY SO THAT I CAN PUT THAT IN THERE.

[OVERLAPPING] IT SHOULD ROLL ACROSS. YES, MA'AM.

>> OKAY. THANK YOU.

>> WILL GET THAT.

>> IF I MAY, I THINK THAT THE ASTERISKS THAT YOU HAVE, THAT'S NOT THE WAY THAT WE'VE TYPICALLY SEEN THIS PRESENTED.

NEXT TIME, JUST DON'T INCLUDE ANYTHING THAT WAS ASSIGNED FROM THE PREVIOUS QUARTER IN THE STATUS CLOSED.

[01:00:04]

THOSE 14 SHOULDN'T BE ON THAT REPORT.

THAT YOU SHOULD HAVE WHAT WAS ASSIGNED, AND OF THOSE THAT ARE ASSIGNED, WHAT NUMBER IS OPEN, AND WHAT NUMBER IS CLOSED. ANY OTHER QUESTIONS?

>> NO.

>> GREAT.

>> WE'LL MOVE ON TO ITEM 5.9, AND THE REPORT ON THE STATUS OF CONSTRUCTION AUDITING, CMAR, AND JOB ORDER CONTRACTING.

>> THANK YOU, TRUSTEES. I'VE GOT A STATUS REPORT ON CMAR CONSTRUCTION.

AS YOU CAN SEE, WE'VE WORKED AND PRETTY WELL ALONG IN THREE OF THE FOUR, CMARS.

THERE'S ONLY LIMITED APPROVALS, GMPS ON THE LAST ONE WAS TO HAVE A STEM.

WE ARE CONSULTING AND HE'S ONLINE TO ANSWER QUESTIONS IF THEY COME UP IN A MINUTE.

BUT I WOULD PRESENT THIS.

I THINK IT READS THROUGH.

WE'RE VERY ACTIVE IN TRACKING EACH OF THE GMPS IN EXPENSE REIMBURSEMENTS AS THEY COME FORWARD.

AND WE'LL BE WORKING ON THAT OVER THE NEXT 18 MONTHS.

I'D ENTERTAIN QUESTIONS IF YOU HAD.

>> YES.

>> TRUSTEE FOREMAN.

>> LOOKING AT THE SUMMARY OF THE CURRENT CMAR PROJECTS SCHEDULES, IT SAYS, I'M LOOKING AT THE FIRST, SECOND, THIRD, FOURTH, FIFTH COLUMN.

GROSS AMOUNT BILLED AS OF 7/31/2021 PER CMAR.

SO ALL FOUR PROJECTS WE'VE BEEN BILLED 17 MILLION.

>> YES, MA'AM.

>> IS THAT CORRECT? AND THOMAS JEFFERSON WAS 9.8 MILLION. IS THAT CORRECT?

>> YES, MA'AM.

>> AND THEN, THE NEXT COLUMN IS A CONTINGENCY. THIS IS JUST ME.

IF WE HAVE A TOTAL APPROVED 239 MILLION, [NOISE] WE'VE ONLY BUILT 17 MILLION.

WHY ARE WE SPENDING OUT OF THE CONTINGENCY ALREADY? AND WHY WOULD WE BE DOING THAT?

>> I'M NOT EXACTLY SURE I CAN ANSWER THAT QUESTION, TRUSTEE FOREMAN. [OVERLAPPING] RICHARD [OVERLAPPING]

>> SOMEBODY.

>> YEAH. THIS IS RICHARD TOWNSEND.

I'M ONLINE HERE.

I HAD PUT THAT CHART TOGETHER FOR THIS MEETING PURPOSE.

AND THOSE CONTINGENCY ARMS, BASICALLY REPRESENT THE FIRST ONE IS THE CONTRACTOR CONTINGENCY, I BELIEVE AND THE NEXT ONE IS OWNER CONTINGENCY.

WHATEVER HAD BEEN APPROVED BY DISD PM FIRMS AND THE DISD STAFF FOR [NOISE] USE OF CONTINGENCY.

I THINK ALL OF THESE PROJECTS HAVE ABOUT 5 PERCENT CONTINGENCY IN THE GMP FOR CONTRACTOR CONTINGENCY AND ANOTHER 5 PERCENT OF THE GMP FOR OWNER CONTINGENCY.

THOSE ARE JUST EVENTS WHERE THEY END UP HAVING TO SPEND MORE MONEY THAN WHAT WAS PROVIDED FOR IN THE GMP, A CHANGE ORDER THAT THEY HAVE TO GIVE TO THE SUBCONTRACTOR IN MOST CASES FOR SOMETHING THAT WAS NOT BOUGHT IN THE GMP.

AND IF IT'S A SCOPE CHANGE OR SOME SORT OF CHANGE, THAT IS DISD DIRECTED, IT COMES OUT OF THE OWNER CONTINGENCY.

IF IT'S SOMETHING WHERE THE RESPONSIBILITY OF THE CONTRACTOR IS COMING OUT OF THE CONTRACTOR CONTINGENCY.

WE'RE ACTUALLY STUDYING ALL OF THOSE USES [BACKGROUND] RIGHT NOW.

THERE'S A LOT OF PAPERWORK GOING BACK AND FORTH BETWEEN THE PMS AND THE CMARS.

DEFINITELY FOR BECK AND FOR TURNER RIGHT NOW, THERE'S NOT SO MUCH.

NONE OF THAT ACTIVITY ON THE READER CONTRACTOR THAT'S BASICALLY IN A VERY EARLY STAGE.

I'LL STOP TALKING AND SEE IF YOU HAVE ANY FOLLOW-UP QUESTIONS.

>> OF COURSE, I DO. THE QUESTION STILL REMAINS, WE ARE ONLY 17 MILLION INTO THE CONTRACT.

OF THE FOUR CONTRACTORS, WE HAVE 239 MILLION, BUT WE SPENT A MILLION IN CONTINGENCY.

WHAT I'D LIKE TO KNOW IS, WHAT ARE WE SPENDING THAT MILLION ON, AND WHY ARE WE NOT USING THE FUNDS THAT HAVE ALREADY BEEN ALLOCATED TO THESE CONTRACTORS? THIS IS RIGHT OFF THE BAT. COME ON [OVERLAPPING]

>> GOOD QUESTION,

[01:05:01]

TRUSTEE FOREMAN AND ACTUALLY IT HAS TO DO WITH WHAT THE DISTRICT ACTUALLY BOUGHT IN THE APPROVED GMP.

WHEN THEY WERE PRESENTED BY THE CONTRACTOR, APPROVED BY THE BOARD, ETC.

WHAT WE BOUGHT RELATIVE TO WHAT WAS IN THE NON-CONTINGENCY AMOUNTS AND IF SOMETHING IS NEEDED FOR THE JOB THAT WAS NOT BOUGHT, THEN THE CONTRACTOR WILL COME BACK AND SAY, FOR EXAMPLE, WE NEED TO GET A CHANGE ORDER FOR THIS OR WE'LL USE SOME OF THE CONTINGENCY FROM EITHER OWNER OR CONTRACTOR FOR THIS.

IT'S BASICALLY TO COVER FUNDS.

WE REALLY HAVEN'T SPENT THIS CONTINGENCY YET, BUT IT'S BASICALLY A SEPARATE ACCOUNTING THAT THEY DO TO ACCOUNT FOR THE USES OF CONTINGENCIES.

THE CMAR CONTRACT HAS A LISTING OF TYPES OF EVENTS, IF THERE THINGS THAT COME OUT THAT ARE A RESULT OF UNFORESEEN CONDITIONS, SOMETHING THAT NOBODY KNEW ABOUT AT THAT TIME, THEN THE CONTRACTOR WILL SAY, I NEED TO ACTUALLY FUND THIS OUT OF CONTINGENCY.

AND THAT'S THE TYPES OF THINGS THAT YOU'RE SEEING HERE.

>> YEAH.

>> CERTAINLY TRIED TO CLARIFY IT A LITTLE FURTHER.

WE CAN GET YOU THE ACTUAL LIST OF WHAT THESE ITEMS ARE.

BUT I BELIEVE WHAT HE WAS TRYING TO INDICATE IS WE HAVEN'T ACTUALLY PAID FOR THESE ITEMS. WHAT WE'VE DONE IS AUTHORIZED THE CONTRACTOR TO DO THAT WORK AT SOME POINT INTO THE FUTURE.

THERE COULD BE AN ITEM THAT CAME UP AND I HONESTLY DO NOT KNOW WHAT THESE PARTICULAR ONES ARE OFF THE TOP OF MY HEAD.

BUT IF WE HAD A, LET'S SAY A TJ, WE HAD SOMETHING THAT HAD HAPPENED WITH THE ELECTRICAL BOX THAT WE NEEDED TO REPLACE THAT WE WEREN'T ANTICIPATING.

WE GIVE THEM AUTHORIZATION TO DO THAT WHEN IT'S TIME TO DO IT, BUT WE HAVEN'T LITERALLY DONE THE WORK OR PAID FOR IT. OR WE HAVE.

>> [OVERLAPPING] I GUESS MY CONCERN IS, WHAT'S THE CONTINGENCY ON THESE PROJECTS?

>> IT WOULD BE 5 PERCENT OF THE CCL.

>> IT'LL BE 5 PERCENT OF THE 239 MILLION?

>> YES, MA'AM. FOR ALL FOUR PROJECTS TOTAL.

>> FOR ALL FOUR PROJECTS TOTAL.

YOU KNOW, MY CONCERN HAS BEEN WITH CMAR IS THAT THERE ARE WAYS TO GET AROUND GET AN ADDITIONAL DOLLARS.

AND [NOISE] THIS JUST SEEMS TO BE ONE OF THOSE WAYS WHEN YOU'RE APPROVING CONTINGENCY, I ALREADY ADDED A BOX BEFORE MANY OF THE PROJECTS REALLY GET OFF THE GROUND.

I'D LIKE TO SEE EXACTLY WHAT THOSE PARTS ARE AND THEN MAYBE YOU CAN SIT DOWN WITH ME AND I HAVE A BETTER UNDERSTANDING OF HOW THEY ACCESS CONTINGENCY.

WHO HAS TO APPROVE THE ACCESS OF CONTINGENCY? AND WHAT IS IT THAT WE ARE ALLOWING THEM TO USE CONTINGENCY FUNDS FOR?

>> [OVERLAPPING] YES, MA'AM.

>> BECAUSE I SAID THIS BEFORE AND I'LL SAY IT OVER, AS LONG AS A CONTRACTOR KNOWS THERE ARE DOLLARS ON THE TABLE, THEY GOING TO FIGURE OUT A WAY TO SPEND IT.

>> AND WE WILL MOST DEFINITELY GIVE YOU THE LIST OF THOSE PARTICULAR ITEMS. I WILL POINT OUT THAT CSP ALSO HAS CONTINGENCY.

>> [OVERLAPPING] I KNOW.

>> WE WILL GET THAT LIST.

THE PROCESS IS THAT YOU MAKE A REQUEST TO IDENTIFY AN ITEM, THEY MAKE A REQUEST AND WE APPROVE IT.

BUT WE'LL GET YOU THE ACTUAL LIST OF WHAT IT WAS.

IN SOME CASES, THERE ARE PARAMETERS THAT ARE PUT ON US AFTER CITY REVIEW AND SAID, YOU NEED TO ADD THIS, THIS, THIS.

AND SO THAT WASN'T PLANNED FOR AS CONTINGENCY, BUT I'LL GET YOU THE EXACT AMOUNT OR THE EXACT [OVERLAPPING] PURPOSE OF THESE.

>> AND HELP ME TO UNDERSTAND WHAT THE PARAMETERS ARE FOR THEM TO ACTIVATE CONTINGENCY?

>> YES, MA'AM.

>> AND I WOULD ASSUME THAT EACH ONE OF THESE CONTRACTS WOULD BE DIFFERENT, IN TERMS OF HOW THEY ARE GOING TO GO BACK CONTINGENCY BASED ON THE CMAR CONTRACT THAT WE HAD.

>> WELL THE PROCESS WOULD BE THE SAME TO ACCESS THE CONTINGENCY.

THE DIFFERENCE WILL BE WHAT WAS INCLUDED IN THE SCOPE AND WHAT WASN'T.

WHAT WAS KNOWN AT THE TIME AND WHAT WASN'T WHEN WE ACTUALLY BID IT. BY PROJECT.

>> I LOOK FORWARD TO HEARING FROM BOTH OF YOU.

[BACKGROUND]

>> ARE YOU COVERING THE JOB ORDER CONTRACT PIECE? YOU HAVE THE FLOOR.

>> DAVID UP HERE AS WELL, SO WE'RE GOING TO GO THROUGH THIS.

APPRECIATE YOUR TIME.

I'M GOING TO START OFF AND JUST SAY WE'RE VERY COGNIZANT OF PAST JOB ORDER CONTRACT AUDITS.

WE WERE METICULOUS IN GOING THROUGH OUR EVALUATIONS OF THIS, WE HAD INTERNAL AUDIT WITH US ALONG THE WAY TO BE ABLE TO ANSWER ANY QUESTIONS,

[01:10:03]

WE'VE MET WITH PROCUREMENT, OBVIOUSLY MAINTENANCE CONSTRUCTION PROCUREMENT, MWBE AND INTERNAL AUDIT HAD AN OPPORTUNITY TO MEET WITH A VENDOR.

I'M GOING TO TURN OVER TO DAVID AND WE'RE GOING TO RUN THROUGH THIS WITH YOU QUICKLY AND ANSWER ANY QUESTIONS.

CHIEF VERBAL CAN ANSWER ANY QUESTIONS AS RELATED TO HIS OBSERVATIONS OF THE PROGRAM, BUT WE'VE GONE THROUGH THIS MULTIPLE TIMES INTERNALLY IN RELATION TO WHAT HAS HAPPENED IN THE PAST AND WE WANT TO MAKE SURE THAT WE'RE ADDRESSING THOSE ISSUES AS WE MOVE FORWARD.

>> THANK YOU, CHIEF. GOOD EVENING.

WHAT I'D LIKE TO PRESENT AND DISCUSS IS A METHOD THAT BOTH BRENT AND I NEED DESPERATELY IN THE 2020 BOND AND MAINTENANCE FOR PROJECTS THAT ARE SMALL BUT TIMELY.

WE TALKED EARLIER ABOUT THE WORK ORDER SYSTEM WHEN WE'RE DOING ROUTINE MAINTENANCE, BUT THOSE PROJECTS THAT ARE A LITTLE BIT BIGGER, WE NEED A METHOD TO BE ABLE TO PUMP THOSE PROJECTS OUT IN A TIMELY MANNER.

BUT WHAT DID WE LEARN FROM OUR PAST AND WHAT DID WE RESEARCH AROUND THE COUNTRY, THE LARGEST SCHOOL DISTRICTS LIKE NEW YORK AND CHICAGO AND DATE, WHAT ARE THEY DOING? HOPEFULLY WE'LL BE ABLE TO ANSWER SOME OF THOSE QUESTIONS IN THIS PRESENTATION TODAY, BECAUSE WE THINK THAT WE HAVE FOUND A MORE AUDITABLE SYSTEM THAT WILL KEEP US ALL INTO COMPLIANCE.

BUT IT ALSO COMES TO THE BOARD ON A QUARTERLY BASIS WITH THE PROJECTS THAT WE'RE GOING TO DO, WHICH IS GREAT.

NOW, THERE MAY BE SOMETHING THAT HAPPENS ALONG THE WAY IN BETWEEN THAT QUARTER, SOMETHING CATASTROPHIC LIKE A WINTER STORM, OR TORNADO EVEN.

BUT THIS METHOD IS SOMETHING THAT WE ALL FEEL WILL BE BENEFICIAL WITH THE $3.6 BILLION BOND AND OUR ANNUAL OPERATING BUDGET IN MAINTENANCE DEPARTMENT.

IT IS A MORE AUDITABLE SYSTEM, TIMELY MANNER FOR SMALL PROJECTS UTILIZES THE TOP-RANKED BIDDERS.

BUT INDUSTRY STANDARDS USES RSMEANS FOR JOB ORDER CONTRACTING.

WE'RE PRESENTING TO YOU TODAY, GORDIAN OR GORDIAN OWNS RSMEANS.

WITH THE AUDIT, WE HAVE OURSELVES BEEN ABLE TO SELF-CORRECT QUITE A FEW OF THE FINDINGS.

GORDIAN WILL HELP US WITH SIX OUT OF THE 11 AUDIT FINDINGS.

MY FAVORITE PART IS IT ALLOWS US TO COME TO THE BOARD WITH THESE PROJECTS, SMALL PROJECTS WITH A $3.6 BILLION BOND WE HAVE A LOT OF THINGS THAT WE'D LIKE TO ADDRESS REAL FAST ALONG THE WAY AND NOT WAIT FOR THE BIG CSP PACKAGE.

IT IS NEEDED CSP, SAYING THAT WE'RE GOING TO DO THAT.

BUT I'D LIKE TO FIX THE AIR CONDITIONER ADJUST A LITTLE BIT FASTER AND SOME OF THOSE AIR CONDITIONERS ARE $600,000.

WITH THAT, I'LL TURN IT OVER TO BRENT.

>> THANK YOU, DAVID. WHAT WE NEED WAS BETTER CONTROLS ON THE JOB PROCESS, AND WE THINK GORDIAN OFFICES IS A DATABASE BASED ON RSMEANS THAT THEY CUSTOMIZE TO JUST THIS REGION.

WE HAVE REAL TIME, COST DATA THAT WOULD BE COMPARED ONCE WE GET A BID FOR MY CONTRACTOR.

THESE WILL BE TRACKED THROUGHOUT THE DATA SET, RSMEANS IS THE INDUSTRY STANDARD IS SOMETHING EVERYBODY RESPECTS, BUT THEY'RE NOT CUSTOMIZED TO THE LOCAL DALLAS MARKET, AND THERE'S IMMEDIATE PROJECTS THAT COULD USE THIS METHODOLOGY.

SOME I'M THINKING ABOUT ARE HOLLAND NEEDS A NEW SEWER LINE, CARTER, BASEBALL CAGES, SPRUCE WASH AND DRY, AND UT SOUTHWEST, WE'RE TRYING TO DO NEW STEM SCHOOL AT THAT LOCATION.

WE THINK USING THIS METHODOLOGY WOULD BE A LOT BETTER DELIVERED METHOD AT THIS TIME POINT

>> FINALLY, HOW WILL THIS ADDRESS THE AUDITS? DAVID TALKED WE BELIEVE THAT WE'VE CORRECTED IN MEETING WITH INTERNAL AUDIT, I BELIEVED THAT CAN CONCUR THAT WE'VE CORRECTED A MAJORITY OF THOSE, BUT THE AUDIT FINDINGS WILL ALSO BE ADDRESSED IN HERE.

TWO OF THE AUDIT FINDINGS RELATED DIRECTLY TO THE USE OF RSMEANS SO BY USING COMPANY THAT OWNS RSMEANS THEIR MANAGEMENT OF THE PROJECTS CLEARLY GOES THROUGH THAT.

WE CHANGED THE BOARD POLICY ON CV LOCAL THE LAST TIME.

THERE WAS SOME AMBIGUITY AS TO WHEN WE NEEDED TO COME TO THE BOARD AND WHEN WE CLARIFIED THAT, WE SAID ANYTHING OVER $50,000 AS A JOB ORDER CONTRACT COMES TO THE BOARD.

THEN WE ALSO PUT IN THERE THAT WE'LL BE REPORTING TO THE BOARD JOB ORDERS ON A QUARTERLY BASIS AS DAVID'S MENTIONED, SO THOSE TWO TOGETHER, IF WE'RE ASKING THE BOARD FOR APPROVAL OF THOSE PARTICULAR ITEMS, GORDIAN IS NOT GOING TO IMPLEMENT

[01:15:01]

ANY JOB THAT HASN'T BEEN APPROVED BY THE BOARD AND THE PREVIOUS AUDIT, THERE WAS QUESTIONS ABOUT SPLITTING ITEMS UP AND SO-FORTH.

WELL, THAT CAN'T HAPPEN, BECAUSE EVERYTHING WILL BE PRESENTED TO THE BOARD THAT'S OVER THE $50,000, WHICH VERY LITTLE CAN HAPPEN, AS WELL AS THEY'LL BE MONITORING WHAT'S GOING ON AT A SINGLE CAMPUS.

IT WILL ALLOW US TO ADDRESS AUDIT FINDINGS AND THEN WE WILL HAVE A CONTINUOUS ABILITY TO MONITOR.

WE'VE HAD THE OPPORTUNITY TO GO THROUGH THE AUDIT IN DETAIL WITH INTERNAL AUDIT TO SAY, DOES THIS MEET THE CRITERIA AND BASED ON WHAT WE'VE LAID OUT, WE BELIEVE IT DOES.

AGAIN, WE DO UNDERSTAND THAT WE WENT THROUGH TWO SEPARATE INTERNAL AUDITORS ABOUT THIS, BUT IT IS A VIABLE PROCUREMENT METHOD AND WE WOULD LIKE THE BOARD CAN CONSIDER THIS.

IF WE HAVE SOMEWHAT FAVORABLE, WE COULD MOVE INTO PRESENTING THIS TO THE ENTIRE BOARD TO ANSWER QUESTIONS IN RELATION TO THAT.

THEN IF APPROVED, WE'D MOVE FORWARD WITH IDENTIFYING THE PROJECTS WHICH WE HAVE A LIST THAT WE POTENTIALLY COULD DO AND THEN GORDIAN WOULD USE THAT INFORMATION TO BEGIN TO SOLICIT THE PARTICULAR VENDORS THAT WOULD FILL THE NEED OF THE JOB ORDER CONTRACT.

I'LL ANSWER ANY OR WILL ANSWER ANY QUESTIONS THAT YOU HAVE.

>> QUESTIONS. JUST YOU FORMAN.

>> I HAVE SEVERAL QUESTIONS.

LET'S START WITH, YOU SAY YOU WANT TO USE GORDIAN.

>> GORDIAN YES MA'AM.

>> AS A CONTRACTOR TO THE DISTRICT.

>>THEY'RE THIRD PARTY, THEY WOULD HELP US ADMINISTRATE THE PROGRAM.

THEY DON'T ACTUALLY DO ANY OF THE WORK.

>> I DIDN'T ANTICIPATE THEY DID THE WORK.

BUT WHAT I'M CONCERNED ABOUT IS THE CONTRARY OF SMALL BUSINESSES THAT WE CURRENTLY HAVE THAT ARE IN MWBE AND HOW THIS WILL AFFECT THEM.

BECAUSE WHEN YOU TALK ABOUT USING RSMEANS THAT'S JUST A STANDARD FOR PRICING.

IT'S NOT A STANDARD FOR WORK THAT'S A STANDARD FOR PRICING AND WE BASICALLY CAN USE RSMEANS WITHOUT GORDIAN.

WE COULD, WE HAVEN'T, BUT WE COULD.

THE ISSUES WITH THE JOB ORDERS PREVIOUSLY WAS THE FACT THAT YOU WEREN'T BIDDING THEM, YOU WERE ROTATING AND YOU WEREN'T BIDDING, YOU WERE JUST GIVEN THEM TO A CERTAIN COMPANIES.

I DO HAVE SOME CONCERNS, BECAUSE THE GORDIAN WOULD HAVE THE ABILITY TO EXCLUDE BENDERS IF WE TURN THIS OVER TO THEM.

I DON'T WANT TO SEE THAT.

PARTICULARLY FROM AN MWBE STANDPOINT, BECAUSE A LOT OF OUR SMALL BUSINESSES DO THESE KINDS OF JOBS BECAUSE THEY ARE SMALL ENOUGH FOR THEM TO BE ABLE TO BOND OR FUND OR WHATEVER THEY NEED TO DO.

I DON'T WANT TO GET INTO THE PROCESS OR TRYING TO MOVE IT TO SOMEONE ELSE AND THEN WE DON'T CONTINUE WITH OUR MWBE PROCESS.

>> HE HAD THE OPPORTUNITY TO MEET WITH GORDIAN THEMSELVES AND THEY ARE VERY COGNIZANT OF OUR MWBE PROGRAM.

THEY'RE JUST ASSISTING US, THEY ARE NOT IMPORTING THEIR OWN LIST OF VENDORS.

>> THEY COULD.

>> WE WERE STILL IN CHARGE OF THE PROGRAM, THEY ARE ASSISTING US WITH THAT.

>> WHAT I'D LIKE TO SEE IS ANY RECOMMENDATION THAT COMES TO THE BOARD FOR USING GORDIAN THAT THERE IS A CLEAR UNDERSTANDING THAT WE PRESENT VENDORS TO GORDIAN.

GORDIAN DOESN'T GET TO PICK AND CHOOSE.

BECAUSE IF YOU LEAVE THAT AMBIGUITY, YOU END UP HAVING THEM.

YOU MIGHT LEAVE TOMORROW THAT'S YOUR HEART.

>> I'M NOT QUITE SURE, I'LL TAKE THAT ONE [LAUGHTER]. [BACKGROUND]

>> WHO KNOWS YOU CAN LEAVE TOMORROW.

>> I'M JUST TRYING TO MAKE SURE, DWAYNE KNOWS I AM, I THINK WE THINK A LOT ALIKE, IN THE LONG-TERM, THAT WE ARE NOT SETTING OURSELVES UP BY PUSHING OUT SMALL BUSINESSES, GIVING IT TO ANOTHER COMPANY TO MANAGE FOR US.

>> THAT IS NOT PART OF THE PLAN.

>> I DON'T THINK THAT'S THE INTENT.

>> I UNDERSTAND.

>> BUT REMEMBER WHAT MY BACKGROUND IS.

[01:20:05]

I'M LOOKING AT THIS FROM THE PERSPECTIVE, IF GORDIAN TAKES OVER WITHOUT ANY REAL DIRECTIVES, IN TERMS OF USING OUR VENDORS, THEN THEY WILL EVENTUALLY BRING IN VENDORS AND THAT'S NOT WHAT WE WANT.

I DON'T KNOW GORDIAN SO I'M GOING TO LOOK THEM UP, BUT I JUST WANT TO MAKE SURE WE HAVE A CLEAR UNDERSTANDING THAT WE'RE NOT PUSHING OUT SMALL BUSINESSES WITHIN THIS DISTRICT BECAUSE MANY OF THEM LOOK LIKE ME.

>> CORRECT. YES. I SEE THAT THERE IS THIS STILL THE MWB REQUIREMENT BUT MEETING WITH THEM AND EVERYTHING BECAUSE I'VE SEEN.

I BELIEVE THIS GIVES THEM MORE OPPORTUNITIES FOR THE BUSINESS AS OPPOSED TO SOME OF THE SOME OF THE SMALL VENDORS HAVE WORKED FOR MAINTENANCE.

WE DO FLOORS, FIX THAT AND THE OTHER.

THIS GIVES THEM AN OPPORTUNITY TO DO A JOB THAT THEY CAN HANDLE.

A JOB OR A CONTRACT WHERE THEY CAN HANDLE $13, $14, $15, $20 CSP.

>> I'M PRETTY MUCH AWARE OF THAT AND I DO UNDERSTAND IT.

BUT WHAT I DO ALSO UNDERSTAND AS YOU GO THROUGH THIS PROCESS OF PUTTING A THIRD PARTY IN PLACE, THAT THERE IS AN OPPORTUNITY TO PUSH SOME OF THOSE VERY PEOPLE OUT THE DOOR THAT'S BEEN WORKING WITH THE DISTRICT FOR YEARS.

I'VE SEEN IT AND SO I DON'T WANT TO SEE THAT.

>> WITH THOSE VENDORS, DO THEY HAVE TO REGISTER OR DO THEY HAVE A SEPARATE SET OF GUIDELINES TO GET IN GORDIAN'S, PIPELINE TO BE USED [OVERLAPPING]

>> RIGHT. WHAT WE WILL DO IS WE PROVIDE THEM A LIST OF OUR VENDORS AND THEY WOULD HAVE SOME POTENTIALLY THAT WE DON'T HAVE, BUT THEY WILL GET ON OUR LIST AS VENDORS.

THERE'S NO FEE ASSOCIATED WITH A VENDOR SIGNING UP FOR THE GORDIAN PROCESS.

WE MADE SURE OF THAT. SO THEY WOULD INCLUDE OUR LIST OF VENDORS AS WELL.

>> I'M NOT SURE IF YOU GUYS GOT THAT [OVERLAPPING] I'M SORRY.

>> ONE QUICK MOMENT, MR. WEST. WERE YOU FINISHED?

>> I'LL LET HIM, BECAUSE I CAN TALK ABOUT PROCUREMENT FOREVER. I'LL LET HIM GO [OVERLAPPING].

>> I JUST WANT TO BE COGNIZANT OF YOUR CLOCK TICKING HERE AND HE'S USING YOUR TIME.

>> THAT'S OKAY.

>> YOU'RE FINISHED? OKAY. MR. LEE

>> MY APOLOGIES.

>> THAT'S QUITE ALL RIGHT.

>> I'M NOT SURE IF YOU'VE GOTTEN TO THAT POINT, BUT WHAT IS THE CONTRACT STRUCTURE IS IT GOING TO BE WITH GORDIAN OUT THERE.

IS IT A FLAT FEE? OR IS IT A PERCENTAGE? OR HOW IS THAT?

>> YES IT'S A PERCENTAGE. YES, SIR.

>> THAT'S ALL I'VE GOT NO FURTHER.

>> TRUSTEE GARCIA, MS. STEVENS, ANY QUESTIONS?

>> YES. MY QUESTION WAS MORE AROUND COSTS AS WELL, BUT ANY ESTIMATES? I KNOW WE'RE STILL YET TO SEE WHAT APPROXIMATE, WHAT NUMBER AND WHAT AMOUNTS, BUT ANY ESTIMATES OF THAT COST?

>> IF YOU'RE REFERRING TO THEIR FEE?

>> YES.

>> I BELIEVE IF I'M NOT MISTAKEN, I BELIEVE IS LESS THAN SIX PERCENT.

I THINK IT'S LIKE 5.72 PERCENT SOMETHING.

I'D HAVE TO GET THE EXACT BUT I BELIEVE IT'S LESS, BUT THERE'S A COST.

IF WE'RE LOOKING AT, AND LET'S JUST USE OF THE SEWER LINE AT HOLLAND.

IF YOU'RE INCLUDING THAT IN THE CSP, THERE'S GOING TO BE AN ARCHITECT ON THAT AND THERE'S GOING TO BE A MARKUP OF A CONTRACTOR AND THERE'S GOING TO BE A PMF ON THAT AS WELL.

IF WE ARE ABLE TO DO THAT INTERNALLY, WE'LL PROBABLY HAVE TO HIRE SOME KIND OF A CIVIL ENGINEER JUST TO MAKE SURE THAT THE SLOPE IS CORRECT AND THAT SORT OF STUFF, BUT ALL THE REST OF THE COST WON'T BE THERE.

IT WILL JUST BE THE CIVIL ENGINEER AND GORDIAN FOR THAT PARTICULAR PROJECT.

THE QUESTION IS WHETHER OR NOT DOING AS AN INDIVIDUAL WILL BE CHEAPER THAN DOING IT IN CSP.

WELL, IF THAT'S THE ONLY PORTION OF THE SEWER THAT WE'RE DOING, I CAN IMAGINE THERE'S GOING TO BE TOO MUCH DIFFERENT AS FAR AS THE ACTUAL COST TO LAY THAT SEWER PIPE.

I WOULD LIKE TO SAY THAT IT'S GOING TO BE LESS EXPENSIVE ON A BOND PROJECTS, BUT THAT'S NOT WHAT WE'RE PROPOSING AND WE'RE PROPOSING THAT FOR THE SPEED THAT WE CAN DO PROJECTS UNDER.

>> THANK YOU, THAT'S MY ONLY QUESTION.

>> I HAVE A COUPLE QUESTIONS AND PERHAPS I WILL GIVE YOU GUYS AN OPPORTUNITY TO BETTER DEFINE WHAT GORDIAN IS GOING TO DO AND WHAT THEY'RE NOT, BECAUSE YOU GUYS GLOSSED OVER WHAT THEIR ROLE IN THE PROCESS IS AND WHAT THEY'RE DOING.

I JUST SPENT SOME TIME READING THROUGH THEIR WEBSITE WHILE YOU WERE TALKING AND THEIR WEBSITE IS PRETTY EXPLICIT THAT THEY DON'T ACTUALLY BRING THE LIST OF VENDORS TO THE TABLE, THAT THEY RELY ON US TO DO THAT.

I WOULD SHARE TRUSTEE FOREMAN'S CONCERN, BUT IT SOUNDS TO ME, AND CORRECT ME IF I'M WRONG, THAT THEY EXPLICITLY ARE NOT PERFORMING THAT STEP OF THE PROCESS.

THEY'RE WAITING FOR US TO TELL THEM WHO THE VENDORS ARE. IS THAT CORRECT?

>> WE WILL GIVE THEM OUR LIST, BUT AS WITH ANY FIRM, THERE ARE VENDORS THAT FOLLOW THEM. IF THEY ARE HERE, THEY'RE GOING TO.

>> BUT BEFORE THEY BECOME A VENDOR, THEY HAVE TO BE APPROVED BY US.

>> THAT'S CORRECT.

>> THEN THEY CAN SUGGEST VENDORS,

[01:25:02]

BUT IT'S OUR LIST OF VENDORS THAT ARE USED.

>> THAT'S CORRECT.

>> OKAY. [OVERLAPPING] THE PROCESS.

>> WHAT THEY'RE GOING TO DO IS THEY'RE GOING TO, WHEN WE IDENTIFY AND GET A BOARD APPROVAL FOR A PROJECT AND THEY'RE GOING TO WALK THE JOB WITH US, MAKE SURE THAT THE SCOPE IS IDENTIFIED, AND IF WE HAVE 100 LINEAR FEET OF SEWER, THEY'RE GOING TO MAKE SURE THAT MEASUREMENT IS CORRECT, AND THEY'RE GOING TO ASSIST WITH THE ACTUALLY GETTING THE PRICING FOR THAT PARTICULAR JOB.

IN ADDITION TO THAT, THEY'RE ALSO GOING TO HAVE THE INDIVIDUAL TRADES BID, THE VENDORS THAT WE THAT WE HAVE, THEY'RE GOING TO BID AND GIVE US.

>> THEIR LIST OF APPROVED VENDORS.

>> YES. THEY'RE GOING TO GIVE US THEIR PRICING WHICH IS ACCORDING TO OURS, MEANS AND THE COEFFICIENT RELATED TO THAT.

IF I AS A VENDOR AND IT COSTS $10 TO LAY THIS TILE AND I WANT TO DO IT AT 85 PERCENT OF THAT, THAT'S THE NUMBER I'M GOING TO PUT ON THERE, AND THAT WOULD BE THE LOWEST THE PRICE COULD BE ON A PARTICULAR JOB.

NOW THEY COULD GO LOWER THAN THAT IF THEY WANTED TO, BUT THEY'RE GOING TO SUBMIT TO THEM AND THAT'S HOW WE'RE GOING TO LIST AND BE ABLE TO COMPARE TO WHAT WE'RE ACTUALLY PRICING.

>> DO THEY THEN RECOMMEND BACK TO US WHICH OF THE VENDOR QUOTES THAT WE SHOULD ACCEPT?

>> NO, WE DO THAT STILL THROUGH THE REVIEW PROCESS THAT WE HAVE.

>> THEY'RE JUST COLLECTING THE INFORMATION AND RELAYING IT TO US AND THEN WE MAKE THE CHOICE OF WHICH VENDOR TO USE?

>> YES.

>> LIKE ONCE WE GET.

>> YEAH.

>> IF THEY GET COLLECTED.

SO THEY'RE NOT IN ANY DECISION MAKING ROLE?

>> THEY ARE IN THE MONITORING ROLE.

>> RIGHT. BUT THEY DON'T CHOOSE WHICH VENDORS ARE ELIGIBLE OR WHICH VENDOR IS SELECTED?

>> THAT'S CORRECT.

>> OKAY. CHIEF, QUESTION FOR YOU.

I THINK THERE WERE 13 POINTS IN THE JOCK AUDIT THAT WAS DONE PREVIOUSLY.

I'VE TALKED WITH THESE GENTLEMEN OVER THE PREVIOUS WEEK OR SO ABOUT THIS PROPOSAL AND I ASKED THEM TO CHECK WITH YOU ABOUT WHETHER YOU BELIEVE THAT THIS APPROACH ADDRESSES THE 13 ITEMS IN THE JOCK AUDIT.

DO YOU BELIEVE THAT IT DOES?

>> YES, SIR.

TWO HAVE BEEN ALREADY IMPLEMENTED, SO WE WERE 11 THAT THEY MENTIONED HERE, THE FIVE AND THE SIX. I'VE GONE THROUGH IT.

THE PROCESS WOULD HAVE WORKED THE LAST TIME IF IT WAS DONE CORRECTLY.

BUT THIS DOES HELP ENSURE THE CONTROL ARE GOING FORWARD, IF THEY'RE GOING TO PRE-PRICE IT, THEN PRE-PRICE IT, EVERYTHING.

I'VE SAID IN WITH GORDIAN TOO, THEY SAID THERE'S NOTHING THEY CAN'T PRICE.

THAT'S THE KEY, YOU CAN'T JUST PULL A NUMBER OUT OF THE AIR THAT WAS USED ON OTHER PROJECTS.

SOME OF THE NON PRICING ISSUES WHERE THERE'S THREE JOBS ON ONE ROOF.

THAT JUST DIDN'T HAPPEN.

THAT'S REALLY MORE OF A MANAGEMENT ACTION, NOT A JOC ISSUE OR A PRICING ISSUE.

YOU'RE GOING TO HAVE ONE ROOF, I BELIEVE THEY'RE ALL WILL BE ADDRESSED, HAVE BEEN ADDRESSED AND WILL CONTINUE TO BE ADDRESSED.

SINCE CONSTRUCTION IS SO HIGH UP ON MY LIST OF THINGS TO DO OVER THE NEXT 10 YEARS WE'LL BE INVOLVED.

>> I HAVE ADDITIONAL QUESTIONS.

>> I JUST HAVE ONE MORE POINT.

YOU TALKED ABOUT WHAT SOME OTHER LARGE DISTRICTS WERE DOING.

IT LOOKS TO ME FROM THE GORDIAN WEBSITE THAT OVER A 1/3 OF THE SCHOOL DISTRICTS IN THE COUNTRY ARE USING GORDIAN FOR THEIR JOC PROCESS?

>> THAT'S CORRECT.

>> OKAY.

>> THE ONES I MENTIONED WERE JUST SOME OF THE LARGEST ONES.

>> GREAT. THANK YOU. TRUSTEE FOREMAN.

>> I'LL CONTINUE BECAUSE WITH THAT CONVERSATION WITH YOU GUYS, IT'S NOT BEEN THE SAME CONVERSATION THAT WE WERE HAVING.

YOU CLEARLY SAID THAT THEY WILL BRING SOME OF THEIR OWN VENDORS I DON'T CARE WHAT'S ON THEIR WEBSITE.

THAT'S WHAT YOU CLEARLY SAID TO ME, IS THAT CORRECT?

>> I BELIEVE THAT THEY HAVE INDIVIDUALS OR COMPANIES THAT FOLLOW THEM THAT PARTICIPATE, MAYBE IT WAS MISSPOKE TO SAY THEY'RE BRINGING HIM, BUT THOSE PEOPLE FOLLOWED THEM.

>> THEY ARE PEOPLE THAT THEY WILL HAVE BIDDING THAT FOLLOWED THEM, THAT THEY WOULD WORK WITH, THAT THEY HAVE A COMFORT LEVEL WITH, IS THAT CORRECT? JUST A YES OR NO.

>> I BELIEVE THEY WILL, YES.

>> OKAY.

>> CAN I CLARIFY?

>> NO, YOU DON'T NEED TO CLARIFY.

I JUST NEEDED A YES OR NO.

WITH THEM BRINGING THOSE INDIVIDUALS, WHAT SAFEGUARDS DO WE HAVE IN PLACE TO ENSURE THAT VENDORS THAT WE'VE USED THROUGH THE YEARS WOULD STILL HAVE AN OPPORTUNITY AND WOULD NOT GET PUSHED OUT.

PEOPLE WORK WITH PEOPLE THEY KNOW.

THAT'S HUMAN NATURE.

>> IS STILL OUR SELECTION.

>> IS STILL OUR SELECTION.

>> FIRST OF ALL, IF SOMEONE IN AUSTIN IS ON THE LIST,

[01:30:03]

I'LL JUST USE AN EXAMPLE.

IF SOMEONE IS IN AUSTIN THAT HASN'T BEEN IN OUR WORK BEFORE AND NOW DOES, THEY'VE GOT TO BECOME APPROVED VENDOR FIRST AND FOREMOST.

THEN THEY WILL HAVE THE OPPORTUNITY TO BID ON THE PROJECT JUST LIKE EVERYBODY ELSE DOES.

BUT THE PEOPLE THAT WE HAVE, THE VENDORS WILL BE STILL THERE AND IT'LL COME DOWN TO THE SAME EVALUATION CRITERIA THAT WE HAVE NOW.

>> WE WILL MAKE THE SELECTION?

>> ABSOLUTELY, WE WILL.

>> BASED [OVERLAPPING] ON PRICING?

>> MWB AND SCHEDULE.

>> YES.

>> BASED ON WHAT?

>> PRICING MWB AND SCHEDULE.

>> SCHEDULE.

>> IF SOMEONE WANTS TO BE A VENDOR AND THEY DON'T MEET THE CRITERIA, THEY'RE DON'T AUTOMATICALLY GET TO BE VENDORS JUST BECAUSE THEY WANT TO.

THEY HAVE TO STILL FILL OUT THE PROTOCOLS THAT WE HAVE.

>> THEY WOULD BE VENDORS OF THE DISTRICT?

>> THAT IS CORRECT.

>> EVEN IF THERE IS SOMEBODY THAT THEY'VE USED IN THE PAST?

>> THAT IS CORRECT.

>> THEN JUST A QUICK CLARIFICATION, YOU SAID THAT IT WOULD BE ABOUT FIVE PERCENT.

THAT'S THE GORDIAN'S COST ABOUT FIVE PERCENT.

THE SMALLER PROJECTS THAT YOU MENTIONED IN THE PAST, IF WE WEREN'T USING JOCS, HOW DID WE DO THAT? DID WE JUST GO OUT FOR BID?

>> THE ONES WE'RE TALKING ABOUT IN PARTICULAR ARE REALLY RELATED TO THE 2020 BOND.

>> I'M JUST TALKING ABOUT OVERALL.

>> RIGHT.

>> FORGET THE 2020 BOND.

SMALL PROJECTS, SMALLER CONSTRUCTION PROJECTS, HOW DO WE BID THOSE?

>> UP UNTIL MIDDLE LATE 2019 WE USED JOCS.

>> CORRECT.

>> SINCE THEN WE HAVEN'T AND SO WHAT WE'VE HAD TO DO IS WE'VE HAD TO WAIT UNTIL WE'RE DOING THE CSP BOND PROJECT AT THAT PARTICULAR CAMPUS AND THEN INCLUDE THOSE ITEMS IN THERE.

AS HOLLAND IS SUCH AN EXAMPLE, WE WOULD WAIT UNTIL THAT PROJECT HAD BEEN DESIGNED AND WOULD BE BID AS A WHOLE INSTEAD OF TRYING TO FIX THAT PROBLEM AS WE WENT, BECAUSE OF THE DOLLAR AMOUNT, BECAUSE WE BELIEVE THE PRICE IS GOING TO BE RIGHT AROUND $450,000 FOR THAT.

WE DON'T HAVE THE CAPABILITY OTHER THAN A JOC OR WAITING FOR THE CSP TO DO THAT.

>> SINCE 2019, WE'VE DONE NONE OF THOSE PROJECTS?

>> NO WE HAVEN'T, WE'VE WAITED AND WE'VE DONE REPLACEMENT OF UNITS.

>> LIKE AIR CONDITION UNITS?

>> WE REPLACE A UNIT, YES.

>> THEN HOW DO WE DO THAT?

>> WE GO TO THE RFP, GET THREE QUOTES.

>> DID YOU SEE WHERE I'M GOING BECAUSE HE'S SAYING ONE WAY YOU SAY WE HAVEN'T DONE IT, THEN ANOTHER WAY, WE HAVE [OVERLAPPING] I JUST KNOW IT'S A BIDDING PROCESS THAT YOU USE.

>> YEAH, BUT THERE'S A DIFFERENCE BETWEEN ONE UNIT AND REPLACING UNITS.

>> I GET IT, I'M JUST NOT COMFORTABLE WITH, WE HAVEN'T DONE ANYTHING SINCE 2019 FOR SMALL PROJECTS BECAUSE I KNOW WE HAVE [OVERLAPPING] AND I KNOW HOW WE'VE DONE IT.

>> WELL, I'M SORRY. I WAS TRYING TO INDICATE WE HAVEN'T DONE ANY JOCS SINCE 2019.

>> THAT'S RIGHT, WE HAVEN'T BECAUSE OF OUR ISSUES WITH JOCS.

BUT I WAS JUST TRYING TO MAKE SURE THAT THERE'S A CLEAR UNDERSTANDING THAT WE HAVE DONE SMALL PROJECTS AND IT'S BEEN THROUGH THE COMPETITIVE BID PROCESS.

I CONTINUE TO SAY THAT I HAVE SOME CONCERNS IF WE DON'T HAVE CONTROL OVER THIS THING, SOME OF OUR SMALL BUSINESSES WILL BE LEFT OUT AND WHILE, YOU AGREE WITH IT, I'M NOT SURE I'M THERE YET.

I JUST HAVE TO MAKE SURE THAT THESE BUSINESSES ARE PROTECTED THROUGH THIS PROCESS.

I'VE GONE THROUGH A LOT OF PROCUREMENT WITH THIS DISTRICT AND I'VE SEEN A LOT OF THINGS HAPPEN AND SOME PEOPLE PUSHED OUT AND I DON'T WANT TO SEE THAT.

I'M SURE YOU'RE NOT TRYING TO DO THAT, I'M SURE YOU ARE TRYING TO FIND AN EFFICIENT METHOD, BUT SOMETIMES WHEN WE'RE TRYING TO FIND AN EFFICIENT METHOD, WE LEAVE PEOPLE BEHIND AND THAT'S NOT WHERE WE NEED TO BE.

WE NEED TO BE BRINGING ALL OF THESE PEOPLE ALONG AND I'LL LEAVE IT THERE.

TO BE CONTINUE WHEN YOU BRING IT TO THE BOARD.

>> ANY OTHER COMMENTS FOR ROUND 2? MR. STEVENS, DO YOU HAVE ANYTHING? GREAT. AS OUR NEXT STEP, YOU ARE PLANNING TO BRING THIS TO THE FULL BOARD FOR CONSIDERATION?

>> YES, SIR.

>>GREAT. I BELIEVE THAT WAS THE LAST AGENDA ITEM.

THE TIME IS NOW 6:05 AND THIS MEETING IS ADJOURNED.

[NOISE]

* This transcript was compiled from uncorrected Closed Captioning.