TO: HONORABLE MAYOR AND FROM: Toni J. Taber, CMC
CITY COUNCIL City Clerk
SUBJECT: SEE BELOW DATE: March 14, 2023
SUBJECT: Second Quarter Financial Reports for Fiscal Year 2022-2023
Recommendation
As recommended by the Public Safety, Finance and Strategic Support Committee on February 16, 2023:
(a) Accept the Second Quarter (period ending December 31, 2022) Financial Reports for Fiscal Year 2022-2023 for the following programs:
(1) Debt Management;
(2) Investment Management;
(3) Revenue Management;
(4) Purchasing & Risk Management.
(b) Adopt a resolution authorizing the Director of Finance to write off uncollectible debts in an amount up to $619,047.71.
CEQA: Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action. (Finance) [Public Safety, Finance and Strategic Support Committee referral 2/16/2023 - Item (d)1]
COUNCIL AGENDA: 3/14/2023
ITEM: 2.9
FILE NO: 23-355
PSFSS COMMITTEE: 2/16/2023
ITEM: (d)1
TO: PUBLIC SAFETY, FINANCE, AND
STRATEGIC SUPPORT COMMITTEE
FROM: Julia H. Cooper
SUBJECT: SECOND QUARTER FINANCIAL
REPORTS FOR FISCAL YEAR
2022-2023
DATE: February 1, 2023
Approved Date
RECOMMENDATION
(1) Accept the Second Fiscal Quarter (period ended December 31, 2022) Financial Reports for Fiscal Year 2022-2023 for the following programs:
(a) Debt Management
(b) Investment Management
(c) Revenue Management; and
(d) Purchasing and Risk Management
(2) Refer and cross-reference the Second Quarter Financial Reports for Fiscal Year 2022-2023 to the March 21, 2023 City Council Meeting for full adoption, and (3) Forward recommendation to the City Council for the March 21, 2023 Council Meeting to adopt a resolution authorizing the Director of Finance to write-off uncollectible debts in an amount up to $619,047.71.
SUMMARY AND OUTCOME
Provide the quarterly update on debt management, investment management, revenue management, purchasing and risk management activity, and recommend approval for Director of Finance to write-off uncollectible debt.
BACKGROUND
The attached Second Quarter Financial Reports for Fiscal Year 2022-2023 (quarter ended December 30, 2022) presents the quarterly activity for the City of San José (City) Finance Department Debt Management, Investment Management, Revenue Management, Purchasing and Risk Management programs (Attachment A). Additionally, the Second Quarter Investment 2/6/2023
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Second Quarter Financial Reports for Fiscal Year 2022-2023
Report has been distributed to the City Council via email and is available on the Finance Department web page1 and is included as part of the report to the Committee As part of the ongoing effort to streamline work efforts within the Finance Department, these programs are combined into a single report for submission to the Public Safety, Finance, and Strategic Support Committee (PSFSS Committee) for its review and referral to the City Council for acceptance.
ANALYSIS
A brief narrative discussion is provided below for all programs in this quarterly report:
• Debt Management
• Investment Management
• Revenue Management
• Purchasing Management
• Risk Management
Debt Management Program
This Second Quarter Debt Report focuses on the City’s debt activities for the period ended December 31, 2022, and relates to the following elements of the City’s Debt Management Program:
• Completed financings and current debt portfolio;
• Debt issuance and management activities completed during the second quarter (October 1, 2022 through December 31, 2022) and anticipated in the next quarter (January 1, 2023 through March 31, 2023); and
• Current interest rate environment as of December 31, 2022 and credit ratings.
The Debt Management Team will be working with the Housing Department and the City Attorney’s Office to update the Debt Management Policy and the Multi-Family Housing Revenue Bond Policy. Staff is planning to present the proposed policy revisions at the March 21, 2023 City Council Meeting.
Investment Management Program
Pursuant to the City Investment Policy, verbal presentations in addition to the written reports are provided to the Public Safety, Finance, and Strategic Support Committee for the Second and Fourth Quarter Reports. The materials presented in this consolidated report provide a “snapshot” of the investment portfolio. The Investment Report will be agendized for acceptance by the City Council pursuant to the Investment Policy.
1 https://www.sanjoseca.gov/your-government/departments/finance/reports/-folder-450
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Second Quarter Financial Reports for Fiscal Year 2022-2023
Revenue Management Program
The Revenue Management report highlights key aspects of the City’s ongoing collection efforts.
These efforts focus on reducing delinquent accounts receivable and enhancing revenue compliance through three primary collection programs: Accounts Receivable, Business Tax, Revenue Compliance and Monitoring, and Utility Billing. This report highlights the Revenue Management Division’s collection efforts and summarizes the progress towards maintaining a Return on Investment ratio of 5 to 1. The Q2 FY 2022-23 Return on Investment is 5.3 to 1.
Overview of Collection Process – City departments issue invoices for various fines, fees, or other costs incurred by the City. Invoices are entered in the City's centralized Accounts Receivable system, RevQ, or referred to the Accounts Receivable group for accounts generated by City departments through stand-alone billing systems. Each department is responsible for the initial invoicing of the appropriate parties.
If an account has an unpaid balance after 30 days, a delinquency notice, including any additional interest, penalties, and applicable fees, is generated and mailed to the debtor. The account is then assigned to a Investigator Collector in the Finance Department, who begins the revenue collection process by contacting the debtor to attempt to collect the past due amount. After 60 days, a second collection notice, including any additional interest, penalties, and other fees, is mailed to the debtor. At this point, a collection cost recovery fee is added to each account. This cost recovery fee is reviewed and set on an annual basis. After approximately 120 days, the Senior Investigator Collector reviews each remaining delinquent invoice with Investigator Collectors to determine the appropriate action to take against the debtor to collect the outstanding balances.
Overview of the Bad Debt Write-Off Process – In addition to proactively collecting the City's delinquent accounts, it is important to write off the City's uncollectible debts to ensure the accuracy of the City's financial statements. On a periodic basis, the Finance Department, in coordination with Departments and the City Manager’s Budget Office, establishes reserves for bad debt to cover potential write-offs of uncollectable accounts. The bad debt reserves are funded as an estimate of total billings each year, in each revenue category billed. The accounts recommended for bad debt write-off will be offset by bad debt reserves that have been established.
The annual analysis of the City' s bad debt reserve is conducted by the Finance Department and reviewed by the City Manager's Budget Office during the year-end closing process. In addition, during the preparation of the City's annual financial statements, the City's external auditors review the City's bad debt exposure as well as the adequacy of the bad debt reserves.
The Director of Finance is authorized to write off as uncollectible any account or claim not exceeding five thousand dollars ($5,000). No account or claim of the City exceeding $5,000 may be written off as uncollectible without the express authorization of the City Council.
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Second Quarter Financial Reports for Fiscal Year 2022-2023
As accounts are considered for write-off through the City's evaluation process, the following criteria is used to determine if an account should be written off as bad debt:
• Debtor has no assets, is out of business, or has no indication of future assets; • Debtor is deceased and has no estate;
• Debtor is incarcerated for an extended or unknown period; • Debtor filed bankruptcy;
• Debtor “skipped,” moved, or sold property with no forwarding information; and/or • Statute of limitations has expired.
Recommended Bad Debt Write-Offs – The Finance Department recommends the PSFSS Committee forward the attached list of delinquent accounts, with delinquent balances totaling $619,047.71 (Attachment B), to the City Council for write-off approval. This request represents a total of 26 uncollectible invoices representing 26 individuals or businesses with delinquent balances ranging from $7,034.37 to $82,755.79.
Collection Efforts (Post Write-Offs) – It should be noted a write-off is not a relinquishment of the City's claim for debts due to the City. Should new information arise that changes the collectability of these claims, the City may attempt to collect payment.
Accounts Receivable Amnesty Program – The Accounts Receivable Amnesty Program (Program) was developed to encourage delinquent debtors to pay any past due amounts owed to the City.
Participants in the Program will have their respective delinquency fees waived, once full payment of the principal balance is received. The Program application period began November 1, 2022 and continues through June 30, 2023, with eligibility limited to invoices billed between April 2020 to August 2021. The debt owed to the City may not pertain to a tax, license or lien collectible, and the debtor must have outstanding delinquent fees remaining.
Actitives during the second fiscal quarter included receiving City Council approval of an ordinance authorizing the Director of Finance to administer an Accounts Receivable Amnesty Program which forgives unpaid penalties, interest, and collection expenses accruing to the City of San José General Fund and other funds for certain accounts billed from April 1, 2020 through August 31, 2021. Development work on account-specific, informational letters for each eligible participant was completed in the fiscal quarter as well. Activities for the upcoming fiscal quarter include mailing the detailed letters to the eligible participants in three tranches, which will aid in managing staff effort in responding to submitted applications, and updating the Revenue Management Phone Tree to add an option directing callers interested in the Program directly in contact with Accounts Receivable staff.
Purchasing Program
The Purchasing Report highlights the key aspects of the City’s purchasing operations. The Purchasing Program of the Finance Department is responsible for the centralized procurement of equipment, supplies, materials, information technology, and non-consulting services, pursuant to
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Second Quarter Financial Reports for Fiscal Year 2022-2023
the Chapter 4.12 of Title 4 of the San José Municipal Code. The Purchasing Division’s mission is to deliver procurement and contracting services pursuant to public procurement best practices.
Citywide Disparity Study. This quarter, the Purchasing Division ramped up its multi-lingual, multi-channel Communications and Outreach Plan activities publicizing the Citywide Disparity Study (Study), with the Study website going live on October 25, 2022. The Study was promoted to key stakeholders in the local community, including but not limited to the following:
• Business Ownership Space Meeting – Presentation (November 1, 2022) • San Jose Small Business Task Force Meeting – Presentation (November 10, 2022) • Libraries and Community Centers (multi-lingual collateral materials, various dates)
The Study also held its first Business Engagement meeting on November 14, 2022; with 5,644 information emails being sent to San José businesses, and 49 businesses subsequently registered.
The ethnic/business type breakdown of the registrants is shown in the chart below; a detailed Information Memorandum regarding the overall status of the Citywide Disparity Study is attached.
Procurement Improvement Initiative. A status report on the Procurement Improvement Initiative and proposed amendments to Title 4 of the San José Municipal Code is provided under separate cover in Item (d) 4 CC 23-022, Amendments to Title 4 of the Municipal Code Related to Procurement of Goods and Services Status Report.
Unknown, 3
Other, 2
Non-MBE/WBE, 8
Non-Minority Woman
Owned, 5
Hispanic American, 11
Asian American, 10
African American, 10
BUSINESS ENGAGEMENT REGISTRANTS
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Second Quarter Financial Reports for Fiscal Year 2022-2023
Risk Management Program
The Risk Management report highlights the key aspects of the City’s risk management program.
The Risk Management Program is responsible for procurement and oversight of the City’s property and casualty insurance programs. The Program also provides contractual risk management services, property subrogation claims reporting and other key services to City Departments including enterprise departments such as the Airport Department and San José – Santa Clara Regional Wastewater Facility.
CONCLUSION
EVALUATION AND FOLLOW-UP
The Finance Department prepares this report on a quarterly basis for review and approval by the PSFSS Committee. The Finance Department staff will be available to answer questions on the Second Quarter Financial Reports for Fiscal Year 2022-2023 at the PSFSS Committee meeting on February 16, 2023.
COORDINATION
This memorandum has been coordinated with the City Attorney’s Office and City Manager’s Budget Office.
PUBLIC OUTREACH
This memorandum will be posted on the City website for the February 16, 2023 PSFSS Committee meeting and on the March 21, 2023 City Council agenda.
COMMISSION RECOMMENDATION AND INPUT
No commission recommendation or input is associated with this action.
CEQA
Not a project, Public Project number PP17-010, City Organizational & Administrative Activities resulting in no changes to the physical environment.
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Second Quarter Financial Reports for Fiscal Year 2022-2023
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
JULIA H. COOPER
Director of Finance
Attachment A: Second Quarter (period ended December 31, 2022) Financial Report for Fiscal Year 2023-2023
Attachment B: Write-Off List Over $5,000, December 31, 2022 Attachment C: Information Memorandum – Citywide Disparity Study Status Report For questions please contact:
Program Finance Contact
Finance Division
Phone
Debt Management Qianyu Sun Deputy Director, Debt &
Treasury Management
(408) 535-7832
Investment Management Qianyu Sun Deputy Director, Debt & Treasury Management
(408) 535-7832
Revenue Management John Kachmanian Deputy Director, Revenue Management
(408) 535-7034
Purchasing & Risk
Management
Luz Cofresí-Howe Assistant Director of Finance (408) 535-7041
SECOND QUARTER FINANCIAL REPORT
FISCALYEAR 2022-2023
Public Safety, Finance and
Strategic Support Committee
Prepared by the Finance Department
February 1, 2023
COMMITTEE AGENDA: FEBRUARY 16, 2023
ITEM: (d) 1
FILE: CC-23-019
ATTACHMENTA
SECOND QUARTER
DEBT MANAGEMENT REPORT
FISCAL YEAR 2022-2023
2 Outstanding Debt as of December 31, 2022: $5.22 Billion FY 2022-23 Year to Date Debt Issuance: $606.5 Million
3 OUTSTANDING DEBT ISSUED
(CITY AND ALL AGENCIES)
*YTD Debt Issuance
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Annual Debt Issuance
($ million)
Outstanding Debt
($ million)
Quarter Ending December 31, 2022
City and Related Entity Debt Outstanding Conduit Debt Outstanding Annual Debt Issuance Outstanding Debt as of December 31, 2022: $4.40 Billion (Excluding Multifamily Housing Revenue Bonds)
4 DIRECT OUTSTANDING DEBT
(CITY AND ALL AGENCIES)
CSJ GO Bonds,
$548,595,000
12.46%
TRAN, $275,000,000
6.25%
CSJFA Bonds/ CP
Notes, $745,132,000
16.93%
Airport Revenue Bonds/ CP,
$1,076,317,000
24.45%
Wastewater Revenue
Bonds, $268,355,000
6.10%
RWF Notes,
$299,999,994
6.81%
Successor Agency
Tax Allocation Bonds,
$1,188,750,000
27.00%
DEBT ISSUANCE ACTIVITIES
DURING SECOND QUARTER (OCTOBER – DECEMBER 2022)
5 • Debt Issuance
▪ CSJFA Wastewater Revenue Bonds, Series 2022B (Green Bonds – Climate Bond Certified) – $268.36 million, December 2022
▪ Regional Wastewater Facility Revenue Tax-Exempt Notes – o Issued $63.1 million in October 2022
o Reached maximum capacity of $300 million Revolving Line of Credit o Notes will be refunded in full with 2022B bond proceeds in March 2023
SELECTED DEBT MANAGEMENT ACTIVITIES
DURING SECOND QUARTER (OCTOBER – DECEMBER 2022)
6 • Request for Proposal
▪ SJCE Revolving Credit Facility ($250 million)
• Reporting
▪ Annual Continuing Disclosure and Compliance Reporting ▪ 2022 Comprehensive Annual Debt Report (CADR)
UPCOMING DEBT ISSUANCE AND MANAGEMENT
THROUGH MARCH 31, 2023
7 • Debt Management
▪ Repayment of $300 million of Subordinate Wastewater Revenue Notes, Series A with proceeds of CSJFA Wastewater Revenue Bonds, Series 2022B ▪ Redemption of $137.5 million of Tax Revenue Anticipation Notes • Reporting
▪ CDIAC - Annual Debt Transparency Reporting (ADTR)
• 10-year history of higher rated
(“AA+”) General Obligation
debt (20-year term) yield
averaged 3.04% and is currently
at 3.35% (as of 1/12/23).
8 BOND BUYER GO BONDYIELD INDEX
3.04%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Dec-12
Dec-13
Dec-14
Dec-15
Dec-16
Dec-17
Dec-18
Dec-19
Dec-20
Dec-21
Dec-22
Interest Rate
Bond Buyer 11-Bond GO Index ('AA+' avg. rating)
Index Average 12/12 - 12/22 (3.04%)
• Taxable 3-Month LIBOR
interest rates paid by the City
averaged 4.51% in Q2. The
Taxable 3-Month LIBOR and
Daily SOFR interest rates are
currently 4.81% and 4.31%
respectively (as of 1/10/23).
9 VARIABLE INTEREST RATES
(TAXABLE)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Dec-21…
Feb-22…
Mar-22…
May-22…
Jul-22…
Aug-22…
Sep-22…
Nov-22…
Dec-22…
Interest Rate
3-Month LIBOR (Taxable)
Daily SOFR
GENERAL OBLIGATION CREDIT RATINGS
• The City’s GO Ratings are higher than the State of California’s ratings and analogous to Santa Clara County’s ratings, which is to be expected given the extent of the tax base and other credit fundamentals that the City and the County share:
10 Entity Moody’s S&P Fitch
CITY OF SAN JOSÉ Aa1 AA+ AAA
STATE OF CALIFORNIA Aa2 AA- AA
SANTA CLARA COUNTY N/A AAA AA+
[1] Moody’s does not currently rate Santa Clara County’s General Obligation Bonds but maintains an Issuer rating of Aa1.
GENERAL CREDIT RATINGS
CITY OF SAN JOSÉ
• The City of San José continues to maintain very high credit ratings. 11 T ype of Rating Moody’s S&P Fitch
KBRA
(Kroll)
ISSUER RATING Aa1
(stable)
AA+
(stable)
AA+
(stable) N/A
GENERAL OBLIGATION BONDS Aa1
(stable)
AA+
(stable)
AAA
(stable) N/A
LEASE REVENUE BONDS
(ESSENTIAL ASSETS)
Aa2
(stable)
AA
(stable)
AA
(stable) N/A
LEASE REVENUE BONDS
(LESS ESSENTIAL ASSETS)
Aa3[1]
(stable)
AA
(stable)
AA-
(stable) N/A
[1] Moody’s assigns a rating of Aa3 to CSJFA 2020B and 2022A bonds which the rating agency considers less essential assets.
OTHER CITY CREDIT RATINGS
12 TYPE OF RATING MOODY’S S&P FITCH KBRA (KROLL)
SAN JOSÉ AIRPORT
BONDS
A2
(stable)
A
(stable)
A
(stable) N/A
SARA SENIOR TAX
ALLOCATION BONDS N/A AA
(stable)
AA
(stable) N/A
SARA SUBORDINATE
TAX ALLOCATION
BONDS
N/A AA-
(stable)
AA-
(stable) N/A
WASTEWATER
REVENUE BONDS N/A[1] AAA
(stable)
AAA[2]
(stable)
AAA
(stable)
[1] Moody’s does not rate CSJFA Wastewater Revenue Bonds. [2] KBRA (Kroll) has assigned a rating to the CSJFA Wastewater Revenue Bonds exclusively..
SECOND QUARTER
INVESTMENT MANAGEMENT REPORT
FOR FISCAL YEAR 2022-2023
13 INVESTMENT POLICY
(COUNCIL POLICY 1-12)
• Investments meet the requirements of the City’s Investment Policy and conform with California Government Code section 53601
• Authorized investments are only highly-rated fixed income securities • Investment Policy is reviewed annually and was last adopted by resolution of the City Council on March 15, 2022
▪ Proposed policy changes included on February 16, 2023 PSFSS Committee Agenda ▪ City Council approval anticipated on March 21, 2023
• Investment Program is audited semi-annually for compliance purposes 14 INVESTMENT OBJECTIVES & REPORTING
• Manage investments to meet the City’s Investment Policy objectives:
▪ Safety
▪ Liquidity
▪ Yield
• Quarterly reports are available to the public
▪ On-line
▪ In PSFSS Committee agenda packets
▪ In City Council agenda packets (for acceptance)
15 SOCIALLY RESPONSIBLE INVESTMENT GOALS
• Articulated in Section 22 of the Investment Policy
• Support community well-being through:
▪ safe and environmentally sound practices
▪ fair labor practices
• Support equality of rights
• Serve all members of the local community
• Promote community economic development
16 PORTFOLIO PERFORMANCE SUMMARY
Size of Total Portfolio $2,538,705,032
Earned Interest Yield 2.233%
Weighted Average Maturity 606 days
Fiscal Year-to-Date Net Income Recognized $24,529,648
Exceptions to the City Investment Policy this Quarter None 17 T otal Investment Portfolio:
$2,538,705,032
18 PORTFOLIO INVESTMENTS
U.S. Treasury
$181,624,817 7.2%
U.S. Agency
$1,160,280,885 45.7%
Supranationals
$190,688,163 7.5%
Negotiable
Certificate of
Deposit (NCD)
$115,614,720 4.6%
Commercial Paper
$48,333,806 1.9%
Corporate Notes
$381,093,633 15.0%
Asset Backed
Securities
$4,660,755 0.2%
Muni Bonds
$233,466,902
9.2%
Mortgage Backed
Securities
$149,749,652 5.9%
JPAP
$50,216,989
2.0%
Money Market Fund
$20,722,200 0.8%LAIF $2,252,511
0.1%
The $708.9 million in the General
Fund presented includes
$613,707,115 of General Fund
monies, as well as $95,181,842 in
other, separately tracked general
funds, such as the Emergency Reserve
Fund, the Coronavirus Aid, Relief, and
Economic Security (CARES) Act, the
American Rescue Plan Act (ARPA) of
2021 and other smaller funds and
reserves.
19 INVESTMENTS BY FUND
Internal Services
Fund $29,214,546
Airport
$250,393,845
Capital Projects
$60,705,353
Debt Service
$60,230,002
Development Fees
$49,741,075
General Fund
$708,888,957
Muni Water
$35,460,968
Parking
$40,972,080
Housing
$313,845,023
Special Revenue
Funds $389,511,320
Wastewater
$434,671,267
Trust & Agency
$12,553,861
SJ Clean Energy
$148,319,854
GENERAL FUND BALANCE
• General Fund balance increased by $52.8 million during the quarter, with the receipt of property tax advances, and ended with a balance of $708.9 million as of December 31, 2022
▪ General Fund balance usually peaks during the months of January and June, when the bulk of property taxes are received, declines in the summer when the City implements retirement prefunding, and declines throughout the rest of the year due to debt service payments and operational expenditures • Projected investment maturities, cash and revenues are sufficient to cover anticipated expenditures for the next six months
20 21
COMPARISON OF CASH BALANCES
(BY SELECT FUNDS)
The following graph compares
monthly balances of the five largest
City funds as reported by FMS.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1000
Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dollars in millions
General Fund Wastewater Airport Housing Special Revenue Fund • City refers to City's Fund 3
Portfolio, and the yield data are
month-end weighted average
yields.
• LAIF refers to the State of CA
Local Agency Investment Fund and
yield data are average monthly
effective yields.
• BAML refers to Bank of America
Merrill Lynch 1-3 Year AAA-A US
Corporate & Government Index
and yield data are rolling 2-year
effective yield.
22 BENCHMARK COMPARISONS
0.00 0.50
1.00 1.50
2.00 2.50
3.00 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Yield (%)
City LAIF BAML
Yield WAM
CITY: 2.323% 611
LAIF: 2.173% 287
BAML 1.700% 675
INVESTMENT STRATEGY
• Continue matching known expenditures with suitable investments within the 24-month horizon
• Extend a portion of the portfolio beyond two-year term, when appropriate, to provide income and structure to the portfolio • Maintain the diversification of the portfolio
• Focus on core objectives of safety, liquidity, and yield 23 SECOND QUARTER
REVENUE MANAGEMENT REPORT
FOR FISCAL YEAR 2022-2023
24 REVENUE MANAGEMENT PROGRAMS
• The Revenue Management Program focuses on collecting all outstanding receivables, with an emphasis on reducing delinquent accounts and enhancing revenue compliance, through four primary collection programs:
▪ Accounts Receivable
▪ Business Tax
▪ Compliance and Monitoring
▪ Utility Billing
• Revenue Management also is implementing an Accounts Receivable Amnesty Program to encourage eligible debtors to pay their principal balances • Efforts may span several reporting periods, and actual collections are reported as funds received by the City.
25 T otal Revenue: $4.624B
Source: 2021-22 City Manager’s
Budget Office Annual Report
(Graph is updated annually)
26 REVENUE MANAGEMENT PORTFOLIO
FY 2021-22 REVENUE ($ IN MILLIONS)
Lodging Taxes
and Fees
$37.6M
2.7%
Franchise Fees
$49.9M
3.6%
Utility Users Tax
$103.6M
7.6%Telephone Line Tax
$21.3M
1.6%Real Property
Transfer Tax
$110.0M
8.0%
Utility Billing
$429.5M
31.3%
Sales Tax
$323.1M
23.6%
Misc. Billing
$223.8M
16.3%
Business Taxes
$72.6M
5.3%
Revenue
Management
$1.372B
City-wide Revenue
(excluding Revenue
Management)
$3.252B
Includes invoices billed through the
Business Tax System, the centralized
Accounts Receivable system (RevQ),
and the Utility Billing System.
(Graph is updated annually)
27 INVOICING AND PAYMENTS
FIVE-YEAR HISTORY (FY 2017-18 TO FY 2021-22)
99.6% 99.5% 99.6% 98.9% 96.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$-
$100
$200
$300
$400
$500
$600
$700
$800
FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22
In Millions
Payments Outstanding Percentage Collected
28 OUTSTANDING RECEIVABLES
THREE-YEAR HISTORY (Q3 FY 2019-20 TO Q2 FY 2022-23)
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
19-20
Q3
19-20
Q4
20-21
Q1
20-21
Q2
20-21
Q3
20-21
Q4
21-22
Q1
21-22
Q2
21-22
Q3
21-22
Q4
22-23
Q1
22-23
Q2
Quarter to Quarter % Change
Millions
Revenue Mangement Aging
Total Receivables Delinquent (91+ days) Delinquency Percentage Change 29 FY 2022-23 Q2 DELINQUENT RECEIVABLES
COLLECTION STATUSSUMMARY ($ IN MILLIONS)
*Rounded
As of December 31, 2022
Write-Off Pending (A/R only)
$3.1M
1,713 Invoices
Liens
$0.8M
306 Invoices
Restitution, Payment
Plan
$1.0M
280 Invoices
Legal, Bankruptcy
$3.3M
691 Invoices
Collection Agency
$20.5M
27,507 Invoices
Active
$29.6M
31,442 Invoices
Total Current
$36.3M
Total Delinquent
$58.2M
Revenue Management
COLLECTIONS & RETURN ON INVESTMENT
REVENUE MANAGEMENT COLLECTIONS
(Q3 FY 2020-21 TO Q2 FY 2022-23)
30 Target ROI: 5.0
12.3 5.7
11.2 10.6 10.8
5.8 5.6
5.3 0.00
5.00 10.00
15.00 $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
20-21 Q3 20-21 Q4 21-22 Q1 21-22 Q2 21-22 Q3 21-22 Q4 22-23 Q1 22-23 Q2 Return on Investment (ROI)
Millions
Business Tax Accounts Receivable Actual ROI
COLLECTION AND WRITE-OFF PROCESS
• Delinquency Notifications Sent to Debtor
▪ 30 Day Notice, 60 Day Notice, Final Notice
• Collection Agency Referral Analysis
▪ Cost-benefit analysis of staff time vs. receivable amount ▪ City’s ability to collect through alternative means
▪ Type of service billed or receivable amount
• Analysis for Write-Off
▪ Collection efforts exhausted
▪ Debtor has no assets, filed bankruptcy, expiration of statute, deceased, incarcerated, or “skipped”
31 ACCOUNTS RECEIVABLE INVOICING & PAYMENTS
FIVE-YEAR HISTORY (FY 2017-18 TO FY 2021-22)
32 $-
$50
$100
$150
$200
$250
$300
FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22
Payments Outstanding
OUTSTANDING RECEIVABLES
ACCOUNTS RECEIVABLE
THREE-YEAR HISTORY (Q3 FY 2019-20 TO Q2 FY 2022-23)
33 -50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
$-
$10
$20
$30
$40
$50
$60
$70
19-20
Q3
19-20
Q4
20-21
Q1
20-21
Q2
20-21
Q3
20-21
Q4
21-22
Q1
21-22
Q2
21-22
Q3
21-22
Q4
22-23
Q1
22-23
Q2
Quarter to Quarter % Change
Millions
Current Receivables Delinquent (91+ days) Delinquency Percentage Change
SECOND QUARTER
PURCHASING AND
RISK MANAGEMENT REPORT
FOR FISCALYEAR 2022-2023
34 PURCHASING PROGRAM
The Purchasing Division of the Finance Department is responsible for the centralized procurement of equipment, supplies, materials, Information T echnology (IT), and non-consulting services, pursuant to the City of San José Municipal Code Title 4, Chapter 4.12. 35 PURCHASINGTRANSACTIONS COMPLETED
SECOND QUARTER FY2022-23
PROCUREMENTTYPE
SECOND QUARTER
TRANSACTIONS
FISCALYEAR TO
DATE
Request for Quotes Awarded 13 25
Request for Bids Awarded 13 21
Request for Information Completed 1 4
Request for Proposals Completed 0 1
Purchase Orders and Purchase Order Adjustments Issued 405 1,186 New Agreements Negotiated and Executed 3 9
Amendments, Change Orders, Service Orders, Options Executed 34 63 Council Memoranda Issued 12 24
Purchase Order & Contract Dollars Procured $61,077,861 $244,388,798 36 PROCUREMENT IMPROVEMENT UPDATE
• Procurement Improvement is a Strategic Support initiative under the City Roadmap
• Staff presenting status report, proposed Municipal Code changes today ▪ Item (d) 4 CC 23-022, Amendments to Title 4 of the Municipal Code Related to Procurement of Goods and Services Status Report
• Staff continues review and consideration of other recommendations from Procurement Improvement Study
37 DISPARITY STUDY UPDATE
• A Citywide Disparity Study is underway to evaluate any need for new procurement policies to facilitate participation of diverse business enterprises in City contracting.
• Finance-Purchasing, in collaboration with the City Manager's Office of Communications, Racial Equity and Economic Development & Cultural Affairs, is working with MGT of America Consulting, LLC to deliver this scope of work. • Completed Activities this Quarter
▪ City Disparity Study multi-lingual website went live on October 25, 2022 https://www.sanjoseca.gov/your-government/departments-offices/finance/disparity-study ▪ First Business Engagement Meeting held November 14, 2022 • Upcoming Activities for Next Quarter
38 RISK MANAGEMENT PROGRAM
The Division is responsible for the procurement and oversight of the City’s property and casualty insurance programs and providing contractual risk management services, property subrogation claims reporting and other key services to City Departments
39 40
RISK MANAGEMENTTRANSACTIONS COMPLETED
SECOND QUARTER FY2022-23
TRANSACTIONTYPE
SECOND QUARTER
TRANSACTIONS
FISCALYEAR TO
DATE
Request for Contract Insurance Specifications 245 504
Request for Insurance Compliance Review 124 256
Request for Letters of Self-Insurance 14 40
Subrogation Dollars Billed to Responsible Third Parties $249,761 $539,046 Council and Committee Memorandums Issued 0 3
Attachment B.
Write-Offs > $5,000
Debtor Invoice
Number Invoice Type Entered Date
Invoice
Balance (Write-
off Balance)
Fund Reason for Write-off
BEBE RELAXATION
FOOT SPA 1154800 MASSAGE PERMIT 4/24/2018 $7,034.37 001 Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
HUNG NGUYEN 1154972 MASSAGE PERMIT 5/1/2018 $7,034.37 001 Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
SUPER PRO RACING 1144794 NONSUFFICIENT FUND
CHECK 11/22/2016 $7,694.20 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
EFRAIN DOMINGUEZ 1146087 PROPERTY
SUBROGATION 02/28/2017 $11,721.25 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
JUAN PEREZ 1148568 PROPERTY
SUBROGATION 08/24/2017 $12,373.96 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
LEAH VINIK 1019579 PROPERTY
SUBROGATION 07/27/2004 $13,178.54 001
Out of Statute/Out of State (NY)
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
Attachment B - Page 1 of 4
Attachment B.
Write-Offs > $5,000
Debtor Invoice
Number Invoice Type Entered Date
Invoice
Balance (Write-
off Balance)
Fund Reason for Write-off
DAVID LINARES 1149480 PROPERTY
SUBROGATION 10/30/2017 $13,456.84 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
MARCIS ZUNIGA 1147122 PROPERTY
SUBROGATION 05/11/2017 $13,522.51 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
ELIZABETH GALAN 1152977 PROPERTY
SUBROGATION 02/21/2018 $14,297.82 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
JUAN MEDINA 1145258 PROPERTY
SUBROGATION 01/10/2017 $14,384.78 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
ERICK BARRIOS 1146298 PROPERTY
SUBROGATION 03/14/2017 $14,580.42 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
DAVID SILVERMAN 1146985 PROPERTY
SUBROGATION 04/25/2017 $15,168.37 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
HARRY FROMM 1140245 PROPERTY
SUBROGATION 03/09/2016 $15,994.95 001 Debtor deceased
Car was stolen
Attachment B - Page 2 of 4
Attachment B.
Write-Offs > $5,000
Debtor Invoice
Number Invoice Type Entered Date
Invoice
Balance (Write-
off Balance)
Fund Reason for Write-off
ROGELIO QUEJA 1146668 PROPERTY
SUBROGATION 04/04/2017 $16,170.74 001
Out of Statute
Initial collection attempts by Finance Staff
Restitution Order/Probation Expired
MARK MILIOTO 1144173 PROPERTY
SUBROGATION 10/06/2016 $17,095.69 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
ELAINE BENTON 1147785 PROPERTY
SUBROGATION 5/16/2019 $20,639.27 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
KATHLEEN JOBKE 1149889 PROPERTY
SUBROGATION 11/6/2017 $20,954.65 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
VU NGUYEN 1142018 PROPERTY
SUBROGATION 06/07/2016 $20,955.00 001
Out of Statute
Unable to Locate
Initial collection attempts by Finance Staff
ANN VILLALOBOS-
GUTIERREZ 1167393 PROPERTY
SUBROGATION 4/17/2019 $23,148.33 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
ANDREW MACNAB 1149034 PROPERTY
SUBROGATION 10/10/2017 $23,347.21 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
Attachment B - Page 3 of 4
Attachment B.
Write-Offs > $5,000
Debtor Invoice
Number Invoice Type Entered Date
Invoice
Balance (Write-
off Balance)
Fund Reason for Write-off
ROSELLA LOPES 1056551 PROPERTY
SUBROGATION 03/13/2015 $24,716.04 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
LUIS HERNANDEZ 1149049 PROPERTY
SUBROGATION 10/12/2017 $33,499.66 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
GABRIAEL MARTINEZ 1167943 PROPERTY
SUBROGATION 5/9/2019 $42,698.13 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
TAMARA WILLIAMS 1167833 PROPERTY
SUBROGATION 5/7/2019 $60,485.78 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
MOISES LANDAVERDE 1165071 PROPERTY
SUBROGATION 02/06/2019 $72,139.04 001
Filied Chapter 7 discharged
Paid $5,600
RAUL MADRIGAL 1167953 PROPERTY
SUBROGATION 5/9/2019 $82,755.79 001
Out of Statute
Collection Agency Assignment
Initial collection attempts by Finance Staff then
by collection agency staff.
26 INVOICES $619,047.71
Attachment B - Page 4 of 4
PSFSS COMMITTEE: 2/16/2023
ITEM: (d) 1
Attachment C
TO: PUBLIC SAFETY, FINANCE, FROM: Julia H. Cooper
AND STRATEGIC SUPPORT
COMMITTEE
SUBJECT: CITYWIDE DISPARITY STUDY – DATE: February 1, 2023
STATUS REPORT
Approved Date
INFORMATION
In May 2022, the City of San José (City) engaged MGT of America Consulting, LLC to support the City in studying its efforts to encourage participation of diverse business enterprises in the City procurement and contracting processes, and provide recommendations and refinements the City may take to increase the participation of diverse business enterprises. This Information Memorandum presents the status of the Citywide Disparity Study (Study).
BACKGROUND
A Disparity Study is used to determine if businesses – typically minority, women, and veteran- owned – face any barriers in the respective entity’s procurement and contracting processes. The Citywide Disparity Study is assessing City efforts to encourage participation and provide policy/procedure recommendations and refinements the City may take to increase participation of these groups. This specialized work effort includes a review of City procurement and contracting programs, data gathering for statistical and econometric analysis, vendor and community outreach, and a final report.
At the December 9, 2020 City Council Joint Meeting for the Rules and Open Government Committee and Committee of the Whole, the City Council referred a memorandum regarding Procurement Programs for Minority-Owned and Other Businesses1 to a full City Council meeting to, among other recommendations,
1 December 9, 2020, Item G.6, File No. ROGC 20-634:
https://sanjose.legistar.com/LegislationDetail.aspx?ID=4711060&GUID=E3339C21-6F95-4E11-8BAB- 73360DB544A5&Options=&Search=
2/8/2023
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Citywide Disparity Study – Status Report
❖ Explore options for implementing a Disparity Study to evaluate and potentially determine the need for new procurement policies that facilitate participation of Minority, Women, and Other owned Business Enterprises (MWOBE) as appropriate; and
❖ Return to Council in spring 2021 with proposal, cost estimate, and scope of study to be considered in the annual budget process.
The City Council approved these recommendations at its January 12, 2021 City Council meeting2.
The Administration submitted Manager’s Budget Addendum No. 14 on May 20, 20213, which provided an estimate of $700,000 to complete a study of disparities in City contracting. This estimate was based on limited research of contracts from other agencies who had performed similar studies. In the Mayor’s June Budget Message for Fiscal Year 2021-20224, the City Manager was
“…directed to report to the City Council by October with a detailed cost estimate of a Disparity Study, or explore the option of issuing an RFQ [Request for Quotes] to better understand the potential cost from the consultants themselves… [and] allocate $50,000 from the Essential Services Reserve to start this work…”
Staff reviewed the scope and cost of disparity studies conducted by multiple jurisdictions within California, identifying the following three cities which performed recent, similar in size and scope disparity studies:
Report Year Entity Study Cost
2015 San Francisco Municipal Transportation Agency $450,000 2017 City of Oakland $490,875
2020 City of San Diego $477,000
Consequently, as directed in the City Council-approved Mayor’s March 2022 Budget Message for Fiscal Year 2022-20235, and approved by the City Council, one-time funds of $400,000 were
2 January 12, 2021, Item 3.5, File No. 21-001:
https://sanjose.legistar.com/LegislationDetail.aspx?ID=4731105&GUID=1F5C1D40-9F38-4049-B24E- 8728B134B3C5&Options=&Search=
3 May 20, 2021, Manager’s Budget Addendum No. 14 – Disparity Study:
https://www.sanjoseca.gov/home/showpublisheddocument/73255/637571278964970000 4 June 15, 2021, Item 3.3, File No. 21-1378:
https://sanjose.legistar.com/LegislationDetail.aspx?ID=4970402&GUID=160FA496-5BF9-4779-8244- 923E527938BC&Options=&Search=
5 March 15, 2022, Item 3.3, File No. 22-310:
https://sanjose.legistar.com/LegislationDetail.aspx?ID=5472236&GUID=64AE98C2-C570-4B5F-8057- D51C2CD30E0A&Options=&Search=
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Citywide Disparity Study – Status Report
added in the FY 2022-23 Adopted Operating Budget6 to support the Disparity Study, with an additional $50,000 anticipated in one-time funding from a non-governmental entity for a total Citywide Disparity Study budget of $500,000. The City received the $50,000 gift from Silicon Valley Community Foundation for the Disparity Study on May 13, 2022.
In February 2022 the City learned the County of Santa Clara (County) executed an agreement with MGT of America Consulting LLC (MGT) to conduct a County-wide disparity study as a result of a competitive Request for Proposals process. Staff reviewed the County Request for Proposals documents, which included the requisite public agency purchase (also known as “piggyback”) language7. This language allowed the City to leverage the County procurement and enter into a contract directly with MGT.
On May 10, 2022, the City of San José (City) engaged with MGT of America Consulting, LLC (MGT) to discuss a potential contract for MGT to support the City in assessing its efforts to encourage participation of diverse business enterprises in the City procurement and contracting processes, and provide recommendations and refinements the City could take to increase the participation of diverse business enterprises. On June 14, 2022, the City Council authorized the City Manager to negotiate and execute an agreement with MGT for a Citywide Disparity Study and related services8 for a total of $410,470 plus contingency of $89,530 for a total contract value of $500,000.
CURRENT STATUS
The Administration transitioned the lead project management responsibilities of the Citywide Disparity Study from the Public Works Department9 to the Purchasing & Risk Management Division of the Finance Department beginning with the May 2022 discussions with MGT. The high-level tasks and proposed timeline of the Study, as excerpted from the executed MGT contract, follows:
6 Page 893, 2022-23 Adopted Operating Budget,
https://www.sanjoseca.gov/home/showpublisheddocument/91599/638095680288270000 7 San José Municipal Code 4.12.225 – Public agencies purchases (B.2):
https://library.municode.com/ca/san_jose/codes/code_of_ordinances?nodeId=TIT4REFIBUTA_CH4.12PRGOSE_PT3PRPR_
4.12.225PUAGPU
8 June 14, 2022, Item 2.14, File No. 22-898:
https://sanjose.legistar.com/LegislationDetail.aspx?ID=5666478&GUID=4D1C6093-0506-4E06-954A- 880B0DF6C93D&Options=&Search=
9 December 9, 2020, Item G.6, File No. ROGC 20-634 (Early Consideration Form) https://sanjose.legistar.com/View.ashx?M=F&ID=9002742&GUID=517CBAA4-E9C1-4ED3-AC65-A9243F78D5F6
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Citywide Disparity Study – Status Report
As of December 31, 2022, the following tasks, in collaboration with City Council District 1 (former Vice Mayor Chappie Jones), the City Manager’s Offices of Communications, Economic Development & Cultural Affairs, and Racial Equity, and the Department of Public Works, have been completed:
❖ Project Kick-off Meeting held June 7, 2022
❖ Data Queries of the City’s Financial Management Systems (FMS) Vendor Database completed for public works/construction, goods, non-consulting/other services, and professional services from July 1, 2016, through June 30, 2021 and submitted to MGT ❖ Procurement and contracting policies, ordinances and procedures submitted to MGT ❖ City Roadmap – Procurement Improvement Status Report (Guidehouse Procurement Review)10 submitted to MGT
❖ Approved and deployed the multi-lingual11 Communications and Outreach Plan, which included the following tactics and activities:
• Published Community Engagement Website12 and multi-lingual feedback forms • Distributed a press release about the Study
• Promoted the Study to key stakeholders in the local community, including but not limited to:
▪ Business Ownership Space Meeting – Presentation (11/1/2022) ▪ San Jose Small Business Task Force Meeting – Presentation (11/10/2022) • Distributed multi-lingual collateral materials to all City Council District offices for communication with constituents, posted in City libraries and community centers, and emails were sent to Community-Based Organizations, multicultural Chambers of Commerce and other business support agencies to publicize the Study. • Promoted the Study via social media
10 May 10, 2022, Item 3.7, File No. 259: https://sanjose.legistar.com/LegislationDetail.aspx?ID=5567613&GUID=18B91667- 1895-4905-ABAE-2E711A986346&Options=&Search=
11 English, Spanish, Vietnamese and Chinese
12 City of San José Disparity Study Website: https://www.sanjoseca.gov/your-government/departments-offices/finance/disparity- study
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Citywide Disparity Study – Status Report
❖ Following are social media saturation statistics to date, provided by the Office of Communications:
Date Response Type Facebook Nextdoor LinkedIn
11/3/2022 Impressions 1,822 8,724 2,049
11/3/2022 Engagements 30 3 N/A
11/3/2022 Reactions N/A N/A 25
11/3/2022 Clicks N/A N/A 34
Date Media Type Facebook Twitter Instagram
11/14/2022 Impressions 2,427 1,127 982
11/14/2022 Engagements 48 18 22
Webpage Statistics City Website – Disparity Study City Website – Flyers Page View 466 20
Weblink Disparity Study - Landing Page Disparity Study - Flyers
❖ Held initial Business Engagement Meeting (11/14/2022) to obtain first-hand experiences of businesses who have done business or attempted to do business with the City or the City’s prime vendors:
• Former Vice Mayor Chappie Jones kicked off the Business Engagement Meeting • In addition to City social media announcements, MGT distributed an announcement of the meeting via email to 5,644 firms/organizations who have previously done business with the City, are located within the San José-San Francisco-Oakland Combined Statistical Area (CSA) or are local trade associations/professional organizations.
• A total of 49 firms/organizations registered to attend this meeting and 53% (26) of registrants attended. The ethnic/business type breakdown of the registrants is shown in the following chart:
Unknown, 3
Other, 2
Non-MBE/WBE, 8
Non-Minority Woman
Owned, 5
Hispanic American, 11
Asian American, 10
African American, 10
BUSINESS ENGAGEMENT REGISTRANTS
PUBLIC SAFETY, FINANCE, AND STRATEGIC SUPPORT COMMITTEE February 1, 2023
Subject: Citywide Disparity Study – Status Report
• During this meeting, firms were given an opportunity to speak privately in one-on- one sessions with MGT regarding their experiences. Of 16 firms which selected this option, 38% (6) of these firms attended the private sessions. • Translation services in four languages (English, Spanish, Vietnamese and Chinese) were provided for the Business Engagement Meetings and the private business meetings.
UPCOMING ACTIVITIES
The following high-level activities will be completed for the next quarterly reporting period:
❖ Data assessment, additional collection and analysis
• Review preliminary prime utilization data with the City to identify purchases that should be excluded from analysis (i.e. personnel reimbursements, utilities, etc.) • Collect subcontractor information from City departments/contract managers ❖ Anecdotal data collection and analysis
• Interviews with trade associations and business organizations. • Distribute vendor survey questionnaire, focus group guides, and quantitative (availability) survey instruments.
❖ Complete Legal Review chapter of the final report and review with MGT ❖ Hold Business Engagement focus groups with specific industries
Tentatively Scheduled Dates & Times Industries
Tuesday, March 14 at 9 AM – 11 AM PST Construction Primes Tuesday, March 14 at 1 PM – 3 PM PST Construction Subcontractors Tuesday, March 21 at 9 AM – 11 AM PST Architecture & Engineering and Professional Services Tuesday, March 21 at 1 PM – 3 PM PST Goods and Other Services
FINAL REPORT
The current Citywide Disparity Study workplan forecasts the final report will be published in the Summer 2023. Staff contemplates advancing recommendations for City Council consideration in the Fall 2023.
/s/
JULIA H. COOPER
Director of Finance
For questions, please contact Luz Cofresí-Howe, Assistant Director of Finance, at luz.cofresi- [email protected] or (408) 535-7041.