Noticed Meeting - CM Salem Re 2025-0810

Oh, I'm sorry. See it. >> Good afternoon. Welcome to this notice. Meeting on 2025. A 10 or as I'm calling the Rothman Johnson Act. I wish he was here to hear it. This sets a floor of $25,000 for city funding awarded to a non for a for-profit or not-for-profit organization by direct Appropriation. When I brought this up committees, that was a lot of discussion about direct contracts in general. Nicky, if you can get these guys, 3 of them. I asked the auditors and as usual, they did a great job of getting a list direct contracts that are in the budget bill. Direct contracts through Kha. And direct contracts approved in the 24. 25 year. You can look at it's quite a number. So. So you've got the bill is only you know, a page and a half. So the question is gentleman. Do we want to have a discussion about direct contracts? Is this something that we want to try to curb in some way either through? 1, 2, or 3 of these areas that that are identified here Kha. Budget bill and and direct contracts that we actually did. Or do we want to just maintain the status quo? So I'm I'm open to any thought. Suggestions. Any of my colleagues. Personally I would like to see last direct contracts. I'd like to see more. Out or just not. Provided period. But I know a lot of us have these organizations closed sun and we like to. We like to use direct contracts. Thoughts? Councilmember College. Direct contract 100 contract. Think there's a there's a place in a time for for that about the whole thing was just the amount of work that goes into something less than $25,000. Just kind of very laborious for I think what we saw in finance for like. You know, 5 bills for 5,000 or $10,000. And it was just like a lot of $10,000 is that we kind of started at that Yes, okay. Okay. The question. Yes. And but when I suggested 25,000 >> in committee while back few people said, well, why don't we look at direct contracts in general? Do we want to continue those? Do we want to change that process at all? And its 25,000 wife number. Councilmember, you've done MR. Carney, she will. You all say one thing real quick since since. >> For me, I don't want to touch like. Doing away with direct contracts. I think that would. I don't think that would solve the Sarah Lee. The problem we're looking at here. So for me, I mean, I don't really want to go down that road. I think focus in on just MAY be setting a floor. Kind of country point of when it's kind of worth to speak. And kind of weed out most weeks out. Some of the smaller asks Andrea contract. I need a smaller one. Should be directed towards like Cs Junior, psg or whatever. So that might offer right now. Councilmember areas. >> Here we go back Some areas district 11. I guess we didn't have introductions good I counted hears 7 direct contracts. And obviously these are for the last year. Is there any way that we can identify exactly what our costs is to actually do these contracts? But places know we talked about I can now be ready for the attorneys and daughters and all that. But I. >> What is our true costs for for any kind direct contract like the status cool across the board. Bill Peterson counselor's office. It's going vary by contract of first the amount of time our office and Mary's office spend. >> Getting it to a point of legislation that sometimes that can be just a couple hours. Sometimes it can be 10, 15, 20 hours, depending on the entity, their familiarity with the process, the intricacy of grant request maybe the amount of grant requests that are in as piece of legislation and then it's also gonna very on the grants and contract compliance standpoint from the monitoring that they do, whether it's on to requesting a singular reimbursement. It's going to be way less time. Then someone who's doing a monthly reimbursement for all 12 months of the year. So it be really hard to put a dollar value on them on the total cost of a mystery, right? That's why here's my suggestion. I understand where. >> I want the council member, but why the intent was, for example, like one of them for $10,000 because some organizations now that they don't deserve a large amount some are truly to help them just kind of either get starter continue the mission that they're providing and you don't want to commit. And $25 because that's meat. That MAY be too much for that organization at Given time. Couple things that I think about our. Anybody is going to be under some 10,000 on one's. I think there needs to be some sort structured island. Putin pacing. If you're going to do this, you cannot be any 12 month recurring thing because it's obviously going to burden our entire system. Maybe we shorten that and put more premieres on that. The second thing would be if we decide to do anything on 25,000 our threshold, maybe we do similar to what other people are doing were like we have like an express lane or tier one tier 2 system where tier one, which is anything than $25,000. Then it goes to a different process through procurement than the conventional way, which means the criteria is for that less than $20,000 contract has to be like it could only be used for x, y z, not anything else. Otherwise that I'm I'm in favor of frosted in the full $25,000 one. But I feel that we're also into the service to some of the smaller organizations that just need a couple of $1000 like Girl Scouts of Council, for example, so kind of torn. I want to support both. I I feel inclined to support you more anything else. But maybe there's a way where both world's can work together, unquote, Thank you. Terrance Freeman at large group, one looking at these blurry words on the sheet of paper. One of the things that would really of help me is to try to differentiate the ones that were. From our special counsel contingency carry over dollars from when PRESIDENT Had money and they allocated, you know, I think you're year we had to keep it to a certain limit. My year we had a lot of free money out the actions they free money saw taxpayer money to go out and do initiatives. But that would better help me interpret some of these items on the list and then how many came from the administration per se I don't think it's apples to apples with a look at those 2 things because I don't believe that we as a council. Doing that anymore. I think this year to get a million dollars out of the cba and there's some guardrails on it. So I so, you know, if we will run into some of the challenges that we we just currently went through because the process has changed. So that's kind of one of the things that I want to put on the record. COUNCILMAN R Us is correct that some organizations they need I've often said if you're helping 10 kids, if you're helping 1000 kids, I see them. Both is equal. They don't have the capacity to take on 25,000 or 50,000 10,000 might be the Max or 5,000 might be the max. Are we now? And I don't like using this term, but we now will discriminate against some of the smaller organizations who are able and willing to help us better serve our constituents. They fall beneath that threshold of whatever development we land on. And so I would just like to ensure that we always have a pathway, even if it's me or I'm sorry that daughters have to work more. But I think the lives that were potentially saving. Far surpassed the time. That is put into it. And, you I will say if the I'll just stop right you can hear your thoughts. Just answer your question. I think the this list, the council direct contracts were all done by a U.S. >> Chris, do is sit on this list here. How many of these were new and not carry over. Been a question how many of these will carry over from a previous budget? On this? Like I heard us say, COUNCILMAN John says, I know that that was a carryover. >> So the the $10,000 accounts over Johnson's ones that are being referenced were all part of the strategic initiative dollars that were put. Yes, they were funded in 23. 24 at the last meeting because the mayor didn't load any dollars into the 24. 25 budget because a number Salem found 2.8 million. So we divide that up. 76 point something percent. Every council member. So. >> Yes, it technically was carry over because of prior year's appropriation. But none of that 2.8 million was spent in the year in which was appropriated. >> So that is all reflective of here and had those dollars and included the budget. I think we'd see the same entities just at large dollar amounts. Thank you. >> But all of these were council initiated. And you've got the kha. Then you've got ones that were in the budget bill. I'm assuming most of those were proposed by the mayor in her budget. We MAY have altered the dollar amounts to some extent. But I think all of those. Correct me if I'm wrong, MISTER Peterson. >> It through the guys. The chair to chair. So kind of the upper portions of the charts. We're the mayor's proposed if there towards the end of the chart, the budget bill and then the khl case, a bulldozer ads by council on the last day. So I don't know the exact line because in the kj just looking everything through item 30 cathedral arts was in the mayor's budget and, you know, just moved to kj because they were kids programs. So first was at 7 were The last 3 were council looking at budget bill, yellow Dog, p# # p# # . We're definitely council at. And then the. Unauthorized camping was. Y'all rearrangement, if you will, of most dollars. So I would say you're I think the majority of these items were made were proposed. >> Councilmember areas. We'll go back COUNCILMAN Carlucci. >> It's never going to get this council direct contracts approved. And I do see that it has approved here. But I at 2 of them in specific that are that were mine. And I know we never funded them. So number one was el-beth-el. It's never been funded for 100,000 and number down the. Thank you. And then there's another one. Northeast, Florida immigrant 9 score. They also weren't paid funding or whatever the case is, because I know that. We were waiting for to submit something and he never did have all these dollars been dispersed? Because obviously not. There's 176,000 that know for a fact of not been dispersed. So is even accurate? Grants and contract cumplir. And so all of these dollars have been approved. They have not all been disbursed. There's a number of these. >> We have included in our carryforward. The p o is being kept open because where if the contract ended SEPTEMBER 30th wearing the clothes out period. And the goal is to close it out by DECEMBER. So they MAY have some additional. Reimbursements that we're working through those I know the one for the immigration services. I don't believe that when got executed because of the environment as it relates to Immigration Day. What they had proposed to do with that grant, they will not be able to do less. All of that chance. I don't believe that a contract was even execute, which is fine. But nobody ever brought that to my attention. It is on their part. So was it. Did they decide not to go forward with it or the somebody here? >> Blockade them. And then that's a conversation for another I'll be happy that I'm just I'm I'm here's why they never executed. The eldest l. I know they had a whole bunch of. So I was currently with Ogc. Okay. So that those 2 and o for one, we closed. I want to see both closed. If I'm not mistaken. The thumb and the immigration once because they were both due by SEPTEMBER 30th and purchase orders are open and the purchase orders. We included them in the carryforward list So if there were something resolved with those, we can go ahead do that. But the expenses would have to be accrued or expended. During the contract horizon as that has that and got it again. Well, I know that doesn't pertain to. So that's Saudis let me try to bring us back. The bill limits. To 25,000 direct contract cannot be less than 25,000. I guess the council could. >> Could override that by about two-thirds and do something less than that. But that was the purpose of that was to try to eliminate a lot of 5 $10,000. Appropriations that and least in my mind. That process was taking advantage of the some extent with a bunch of very small to try hit various organizations. I don't think it was necessarily unique to a particular need. I think it was unique to spreading out the money to various organizations and then discussion about direct contracts. If we like the system, we have. This is what we're doing. So just understand none of these go out to bid. They are there. They are directly appropriated to organization. Go councilmember partly Okay. >> It definitely speaks to that. So and you know the answer this. But for psu kj and csg, there's no. >> Minimum amount that you can get through there. >> I mean, the smallest I saw was like 6,000 no minimums. Okay. So there's no minimums really? So for for me, at least when folks come in approach me for. Money, I just send them seek a csg first. That's kind of the the first threshold. I view direct contract says more of the last resort and maybe not last resort, the right word. But more of the look. There's got to be special sort of. There's got to be different circumstances, right to go through that through that route. And I have one currently that kind of meets those criteria, so to speak. But I don't have a problem. Speaking to the bill from the bill. I think it's fine. 25,000. I think it's a it's a fair number to start with could be 20 could be 15 sure. But you know, for me, I think as just a guiding, you know. I don't know. Ky dot guardrails for council direct contracts. I do have a problem with that because I think really, truly those smaller ask should go to. Agencies and psg boards and cst boards. And that's that's just how I kind of feel about it. Anybody else? So it sounds what I'm hearing. >> Go forward with a 25,000 and leave the direct contract. >> These as it is and we'll just continue to work with the system that we have. >> Yeah, it's gotten some And what what does that you haven't directly contradicts. I mean, I think we've addressed a 25,000 and I mean, with 10 votes do whatever you want to hear, right and get a waiver. Support of guard rails at all times. But what are your 1000 direct contractors? I would love to hear those if you had I would like to see less direct contracts and >> more. >> Go out to be. >> As in 3 d competitively bid rfp process, grant identify what we want and let people build on it. >> And award a bit of some sort versus a direct contract. And what would the steps be needed needed to get to that point? Well, what? We've got people that that we could assigned to put things out for a bit. I mean, you could take examples of this. I mean, some of these are fairly unique like in terms of a 2, 1, 1, I don't know anyone else that provide that service. There MAY be somebody, but I suspect it's not. But I suspect. If you look at it, some of these that are here and look at what the goal is. There probably are multiple organizations London by that same And so we're kind of a friend to so source contracts and folks that have a particular. >> Our unique. Product that is likely found threw a chair to anyone who can answer this in the audience. And what are your thoughts Eliminating direct contracts and going to be How does that impact what you do? Per se and psg here with a coach or counselor? >> figure on track lift a little bit. I don't think it in go. Thank you. Now before they're grant and contract compliance. The in terms of the Threshhold. I am very excited to see that because it does take the same amount of effort and I argue that it takes more time. When you have a lower amount because it does tend to be smaller agencies that are not familiar with how to do business with the city. And we spent a lot of extra time going back and forth just to get some of the invoices paid. So I definitely support that in terms of direct contrast. I think it's just a matter of having to work out the that process and that MAY be something that procurement MAY have to be engaged in and who would own developing the scope and working it is we are government. So there is a process. It's not it's not as obviously not as easy. As a direct contract. But I will leave it up to to determine whether it's the right thing to do. >> Yes, kind we hear from the administration, Joe, if you have any thoughts on this, where is the? Mayor's office kind of stand on it. Afternoon. John Andrews, deputy chief of staff mayor's i think that. MR. Freeman likes Dustin Freeman. COUNCILMAN Freeman likes to say when in doubt it out. And I think that's a good North star. A lot of city engage isn't. Think for any number of reasons. Competitive. Competition is good. Brings in new entities as our city continues to grow. Last. You put out the work. And advertise it. How does a new organization that's new to the city knows what's Eoj is looking to do so. I think there are couple of benefits too, when in doubt. But it out. Not talking about the bids. I understand is that so that's the second. The bill is just speaking to like the limit for 25,000 for direct contracts. Like meeting that threshold. >> I think all all deferred to the subject matter expert on on this. She says that it is a good for department. >> I heard a vision then, you know, sport. Okay, understood it. >> Yes, so for me, I mean, I would I would be very cautious wading into elimination of the direct contracts on because there is flexibility with that and that and there is a lot of efficiency with that. When in doubt that it out sounds great. But we had to wait 2 years to get medians and Atlantic Boulevard because no one was bidding on it. And we had one bid that kept coming back over and over again. And the nicotine kicked out. So sometimes it doesn't work right? It's a double edge sword. So that's for for me that that conversation is totally separate and much, much bigger and I would be way, way more cautious on that versus minimum threshold for 25,000. And if if I MAY, I can. I can. I concur. And that's where I was about to. >> land was, you know, there are pros and cons that need to be way down. Before we go ahead and and change or eliminate a very effective in longstanding use and we make it. >> Very clear. Was not my goal to eliminate direct contract my my the purpose of this discussion in my mind was to see if there are ways that we could reduce potentially are there ways it because I bidding is a great thing. Gets everyone involved. But and I look at many of the and they're very you you know, for 24 police foundation. There's so many here that are unique to that particular entity that would be very hard to out. I think there are some on air that you probably could. >> Potentially that out. But I just wanted to bring it to our attention was not greatly appreciated. I'm good. With 25,000 >> gonna do some more homework just to make sure I understand how organizations work so a per se just got a request from a group that they want state and cheerleading and they need money for transportation. That's not going to be about $10,000. As long as those entities are still able to perform their service reduce fulfill their mission as make sure we're not setting any limits on them. But I get the spirit of where you're with. And I completely agree with that. Just want to make sure that we got on the baby out with the bathwater. S and hopefully people that I've got a concern will express it. Okay. We're going to end it right there. Thank you from so