A G E N D A -GALVESTON AREA COUNCIL FINANCE AND BUDGET COMMITTEE MEETING DECEMBER 15, 2020 9:30 AM https://zoom.us/webinar/register/WN_iNajds0jQo2_vfoaq Owe_w 1. CALL TO ORDER 2. N/A 3. PUBLIC COMMENTS – Members of the public may participate by sending comments to [email protected]; by joining online via website; or by dialing US: 1- 888-788-0099 (Toll Free) or 1-877-853-5247 (Toll Free) (Webinar ID: 965 2324 9092; Participant ID: 161205; Passcode: 774200) 4. DECLARE CONFLICTS OF INTEREST ACTION 5. CONSENT AGENDA Items listed are of a routine nature and may be acted on in a single motion unless requested otherwise by a member of the Board. a. N/A b. HGACBUY – PORTABLE CONSTRUCTION AND MAINTENANCE EQUIPMENT Request authorization of contracts with the lowest responsible bidders for portable construction and maintenance equipment. (Staff Contact: Ronnie Barnes) c. HGACBUY – OFICE MANAGEMENT SOFTWARE SOLUTIONS Request authorization to negotiate contracts with the respondents listed for Office Management Software Applications and Services. (Staff Contact: Ronnie Barnes) d. REGIONAL SAFETY CAMPAIGN Request authorization to make media buys for billboards, radio airtime and social media to conduct a Regional Safety Outreach Campaign; amount not to exceed $500,000. (Staff Contact: Patrick Mandapaka) e. RENEWAL OF AGREEMENT WITH HARRIS COUNTY FOR THE TOW AND GO PROGRAM Request authorization to enter into an interlocal agreement with Harris County for Freeway Surveillance for the Tow and Go Program; amount not to exceed $3,300,000. (Staff Contact: Patrick Mandapaka)

f. WORKFORCE SYSTEM BOOTCAMPS FOR ENTREPRENEURS Request approval of two contracts for entrepreneurial bootcamps: Women’s Business Enterprise Alliance, amount not to exceed $29,700; and Mass Challenge, Inc., amount not to exceed $49,996. (Staff Contact: Mike Temple) g. RENEWAL OF GEOGRAPHIC INFORMATION SOFTWARE MAINTENANCE AGREEMENT WITH ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE Request approval to renew annual maintenance and support agreement with Environmental Systems Research Institute; amount not to exceed $63,300. (Staff Contact: Tanya Nguyen)

6. FINANCE AND BUDGET COMMITTEE Report on activities and Committee recommendations. a. MONTHLY FINANCIAL REPORT – NOVEMBER 2020 Request approval of monthly financial report ending October 31, 2020. (Staff Contact: Nancy Haussler)

7. BUDGET AND SERVICE PLAN a. PUBLIC HEARING Public Hearing on proposed H-GAC 2021 Budget and Service Plan. (Staff Contact: Chuck Wemple)

b. H-GAC 2021 BUDGET AND SERVICE PLAN Request approval of the recommended H-GAC 2021 Budget and Service Plan. (Staff Contact: Chuck Wemple)

c. SALARY AND BENEFIT PROGRAM – 2021 Request approval of recommended employee salary ranges for 2021. (Staff Contact: Nancy Haussler)

8. AUDIT COMMITTEE a. SELECTION OF EXTERNAL AUDITOR FOR ANNUAL AUDIT No action needed; previous authorization allows for continuing use of professional audit services from BKD as the independent external auditor for the H-GAC fiscal year ending 2021. (Staff Contact: Charles Hill)

b. INTERNAL AUDIT ANNUAL PLAN FOR FISCAL YEAR 2021 Request approval of Internal Audit Annual Plan for Fiscal Year 2021. (Staff Contact: Charles Hill)

9. ADJOURNMENT

Item 5.b. Page 1 of 5 HGACBUY - PORTABLE CONSTRUCTION AND MAINTENANCE EQUIPMENT Background The H-GAC Cooperative Purchasing Program (HGACBuy) establishes contracts for a variety of products and services through competitive solicitations. Member governments are able to use the contracts to make purchases. HGACBuy received and opened nine bids for Portable Construction and Maintenance Equipment on September 17, 2020. The following companies submitted bids:

Associated Supply Co., Inc. dba Lubbock, TX ASCO, ASCO Equipment, and/or ASCO Rentals Atlas Copco USA Holdings, Rock Hill, SC Inc. dba Power Technique North America LLC BPR Operating, LLC Pearland, TX Bradley J Fish, Inc., dba Sullair Houston, TX of Houston Clark Equipment Company dba Statesville, NC Doosan Portable Power Holland Pump Company West Palm Beach, FL Mersino Dewatering dba Global Davison, MI Pump Sunbelt Rentals, Inc. Fort Mill, SC Xylem Dewatering Solutions, Bridgeport, NJ Inc.

Current Situation This contract is a continuation of an existing contract in our portfolio, consisting of portable air compressors, light towers, vertical/boom lifts and hydraulic/electric pumps. One new manufacturer is being introduced. All bid responses have been evaluated by H-GAC staff. Nine bids are being recommended for award. Request authorization of contracts with the lowest responsible bidder providing the best value for product items as summarized in the Award Recommendation Table.

Funding Source Participating local government purchases

Budgeted N/A

Action Requested Request authorization of contracts with the lowest responsible bidders for portable construction and maintenance equipment. (Staff Contact: Ronnie Barnes) Page 2 of 5 ATTACHMENTS:

Descr ipt ion Type CM02-21 Award Recommendation Table Cover Memo

Page 3 of 5

CM02-21 Award Recommendation Table

H-GAC Product Code Recommended Contractor A. Portable Air Compressors A. Atlas Copco CM21AA01- CM21AA16, CM21AA18- Atlas Copco USA Holdings, Inc. dba Power Technique North CM21AA28 America LLC B. Doosan CM21AB01–CM21AB09 Clark Equipment Company dba Doosan Portable Power C. Sullair CM21AC01-CM21AC07, CM21AC09, Bradley J Fish, Inc. dba Sullair of Houston CM21AC11 D. MMD Airman Air Compressors Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21AD01, CM21AD03 and/or ASCO Rentals E. Chicago Pneumatic Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21AE04 and/or ASCO Rentals B. Light Towers A. Allmand Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21BA01- CM21BA03 and/or ASCO Rentals C. Doosan CM21BC01–CM21BC02 Clark Equipment Company dba Doosan Portable Power E. Wacker CM21BE01- CM21BE02, CM21BE05, Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21BE09, CM21BE12 and/or ASCO Rentals H. Multiquip Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21BH06, CM21BH08- CM21BH22 and/or ASCO Rentals I. Atlas Copco Atlas Copco USA Holdings, Inc. dba Power Technique North CM21BI01- CM21BI07 America LLC C. Scissor / Personnel & Self-Propelled Vertical Lifts A. Genie Industries CM21CA01- CM21CA07, CM21CA09- Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21CA13, CM21CA15- CM21CA28, CM21CA32- CM21CA38 and/or ASCO Rentals B. JLG CM21CB01- CM21CB02, CM21CB04- Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21CB07, CM21CB09- CM21CB13 and/or ASCO Rentals D. Telescopic / Articulating Boom Lifts

Page 4 of 5 A. Genie Industries CM21DA01- CM21DA02, CM21DA04- Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21DA05, CM21DA07- CM21DA26, CM21DA28 and/or ASCO Rentals B. JLG CM21DB01- CM21DB03, CM21DB06- CM21DB08, CM21DB10- CM21DB13, Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21DB15- CM21DB16, CM21DB19- and/or ASCO Rentals CM21DB21 F. Portable “Self-Priming” Trash Pumps A. Godwin CM21FA01–CM21FA03 Xylem Dewatering Solutions, Inc. B. Gorman-Rupp CM21FB01-CM21FB08 BPR Operating, LLC H. Multiquip CM21FH01- CM21FH13, CM21FH19- Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21FH27 and/or ASCO Rentals M. Wacker Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21FM02, CM21FM05 and/or ASCO Rentals P. Atlas Copco CM21FP01- CM21FP13, CM21FP15- Atlas Copco USA Holdings, Inc. dba Power Technique North CM21FP18 America LLC Q. AMT Pump CM21FQ01- CM21FQ07 BPR Operating, LLC G. Portable “Priming-Assisted” Trash Pumps A. Global Pump CM21GA01- CM21GA25 Mersino Dewatering dba Global Pump B. Godwin CM21GB01 – CM21GB24 Xylem Dewatering Solutions, Inc. C. Gorman-Rupp CM21GC01-CM21GC17 BPR Operating, LLC F. Pioneer CM21GF02, CM21GF04, CM21GF06, CM21GF17- CM21GF19, CM21GF26, Sunbelt Rentals, Inc. CM21GF28, CM21GF36- CM21GF37 G. Holland Pumps CM21GG01 – CM21GG14 Holland Pump Company H. Hydraulic Submersible Pumps A. Godwin CM21HA01 – CM21HA22 Xylem Dewatering Solutions, Inc. B. Hydra-Tech

Page 5 of 5 CM21HB01- CM21HB08, CM21HB11- CM21HB12, CM21HB17- CM21HB22, BPR Operating, LLC CM21HB25- CM21HB35, CM21HB37- CM21HB43 CM21HB09-CM21HB10, CM21HB13- CM21HB16, CM21HB23-CM21HB24, Sunbelt Rentals, Inc. CM21HB36, CM21HB44 C. Holland Pump CM21HC01 – CM21HC10 Holland Pump Company D. Atlas Copco Atlas Copco USA Holdings, Inc. dba Power Technique North CM21HD01- CM21HD02 America LLC I. Electric Submersible Pumps A. Godwin CM21IA01 – CM21IA06 Xylem Dewatering Solutions, Inc. B. Gorman-Rupp CM21IB01-CM21IB06 BPR Operating, LLC D. Wacker Associated Supply Co., Inc. dba ASCO, ASCO Equipment, CM21ID04-CM21ID11 and/or ASCO Rentals H. Atlas Copco Atlas Copco USA Holdings, Inc. dba Power Technique North CM21IH01- CM21IH66 America LLC I. AMT Pump CM21II01- CM21II04 BPR Operating, LLC J. Welders and Equipment C. MultiQuip Associated Supply Co., Inc. dba ASCO, ASCO Equipment, AM21JC01, AM21JC03-AM21JC08 and/or ASCO Rentals

Item 5.c. Page 1 of 2 HGACBUY - OFFICE MANAGEMENT SOFTWARE SOLUTIONS Background The H-GAC Cooperative Purchasing Program (HGACBuy) establishes contracts for a variety of products and services through competitive solicitations. Member governments are able to use the contracts to make purchases. HGACBuy received and opened four proposals for Office Management Software Solutions on October 5, 2020. The following companies submitted a proposal:

ALPHA Facilities Solutions, LLC San Antonio, TX BW Consulting, Inc. Greenwood Village, CO Data Transfer Solutions, LLC Tampa, FL Mind Tech, Inc. Houston, TX

Current Situation This will be a new contract in our portfolio, consisting of various types of Office Management Software Applications and Services. All bid responses have been evaluated by H-GAC staff. Three proposals are being recommended for award. The response from Mind Tech, Inc. did not meet the minimum scoring threshold to be eligible for a contract. Request authorization for contracts representing the best value for product items as summarized in the Award Recommendations Table.

Funding Source Participating local government purchases

Budgeted N/A

Action Requested Request authorization to negotiate contracts with the respondents listed for Office Management Software Applications and Services. (Staff Contact: Ronnie Barnes)

ATTACHMENTS:

Descr ipt ion Type OM03-21 Recommendations Table Cover Memo Page 2 of 2

H-GAC Product Categories

A. Financial: Providing accounting functionality designed specifically for local government’s needs, including but not limited to, accounts receivable, accounts payable, general ledger, billing, invoicing, purchase orders, report creation, report distribution, budgeting, planning, and forecasting, with AP/AR functionality and process flow of the invoices from receipt through payment.

B. Inventory Control: Tracking inventory levels, orders, and deliveries.

C. Facilities Management: Managing the entire repair and maintenance program for facilities from a web-based dashboard.

D. Project Management: Providing project planning, scheduling, resource allocation and change management, allowing project managers, stakeholders, and users to control costs and manage budgeting, quality management, and documentation.

E. Fleet Management / Maintenance: Fleet Maintenance software concentrating on repairs and preventive maintenance aspect of managing business vehicles.

F. Security: Providing security in terms of hacking, ransomware, and other threats.

G. Additional Modules: Proposers should offer optional add on modules for truly scalable solutions, such as grant management, payroll, HR, dashboard analytics, mobile access, and vendor management.

OM03-21 Award Recommendations Table Proposal Product Category ALPHA Facilities Solutions, LLC A, D, E, G BW Consulting, Inc. A, G Data Transfer Solutions, LLC A, B, C, D, E, G Item 5.d. Page 1 of 2 REGIONAL SAFETY CAMPAIGN Background In 2019, motor vehicle crashes cost the Houston-Galveston Area approximately $8.3 billion in lost lives, injuries, and property damage. Approximately 500 traffic fatalities occurred each year in 2018, 2019 and 2020 as of September within the eight-county region. The Houston-Galveston Area Council has developed a Regional Safety Program to help the region reach the Vision Zero goal of no traffic deaths in the region. H-GAC's Transportation Policy Council has adopted a Vision Zero goal to end traffic fatalities by 2050.

Current Situation The Regional Safety Campaign will conduct public outreach for transportation safety in the region using billboards, radio, digital banners, and social media advertising in English and Spanish, and other languages as appropriate. Attachment 1 shows estimated costs, potential vendors, and additional information on the media buys.

The goal of the outreach campaign is to reduce the total number of crashes, fatalities, and serious injuries in our area. The project’s benefits will be multi-faceted. By broadening all citizen's knowledge about the rules of the road, more cooperative and lawful behavior will result.

Funding Source Department of Transportation

Budgeted Yes

Action Requested Request authorization to make media buys for billboards, radio airtime and social media to conduct a Regional Safety Outreach Campaign; amount not to exceed $500,000. (Staff Contact: Patrick Mandapaka)

ATTACHMENTS:

Descr ipt ion Type Attachment - Regional Safety Campaign - Estimated Costs and Vendors Table Page 2 of 2 Attachment 1 - Regional Safety Campaign – Estimated Costs and Vendors KPRC Digital Advertising Houston Chronicle (website, social media ABC13 $100,000 partnerships, emails blasts, KHOU streaming services etc) Texas Monthly KRBE KKBQ KGLK Radio Advertising $150,000 TTWN (KODA, KMJQ, KQBT, KBXX, KLTN) KOVE Billboards Clear Channel Outdoor $200,000. Save for additional opportunities that arise with vendors and the potential for Misc. any in-person events OR $ 50,000 allocate to one of the above sections depending on timeframe

TOTAL COST $500,000

Digital

All vendors selected for digital advertising are community or traffic focused with viewers within the service area and surrounding counties. Each vendor also has large and diverse audience bases across the entire region.

Social Media

Using H-GAC’s existing social media platforms, we will target individuals within the service area using zip codes and keywords provided by Google.

Radio

By advertising with the selected radio stations, we will cover all major radio stations with a Nielson audio rating of 4.5 or higher in the Houston area.

Billboards

The vendor selected for billboard advertising has been used in prior years for the Tow and Go program and has continued to run ads at no cost after the campaign ended. They are also the sole provider of freeway billboards in the targeted areas. Item 5.e. Page 1 of 1 RENEWAL OF AGREEMENT WITH HARRIS COUNTY FOR THE TOW AND GO PROGRAM Background The Houston-Galveston Area Council is working with local governments to implement the Tow and Go Program as part of regional incident management activities. The purpose of the Tow and Go Program is to quickly remove stalled vehicles from area freeways to a nearby safe location at no cost to the motorist, thereby reducing traffic congestion and secondary crashes. Currently, H-GAC has agreements with the City of Houston and Harris County to conduct no-cost tows. The program requires that all tows be authorized by a law enforcement officer. Harris County law enforcement staff and dispatchers currently perform this task at Houston TranStar.

Current Situation H-GAC is requesting to enter into an intergovernmental agreement with Harris County to reimburse Harris County for freeway monitoring costs associated with the Tow and Go Program. The Texas Department of Transportation has authorized the expenditure of these funds, and the funds are budgeted in the Transportation Improvement Program. This agreement will support the continuation of freeway monitoring currently performed by Harris County for a 12-month period from February 1, 2021 through January 31, 2022.

The Tow and Go service is currently on freeways within the City of Houston, un-incorporated Harris County, Bellaire, Humble, Jersey Village, La Porte and Webster. The cost of towing is $60 per tow and is provided at no cost to the motorist. The average clearance time is approximately 16.5 minutes. Over 60,000 tows have been completed from January 2019 through November 2020.

Funding Source Texas Department of Transportation

Budgeted Yes

Action Requested Request authorization to enter into an interlocal agreement with Harris County for Freeway Surveillance for the Tow and Go Program; amount not to exceed $3,300,000. (Staff Contact: Patrick Mandapaka) Item 5.f. Page 1 of 1 WORKFORCE SYSTEM BOOTCAMPS FOR ENTREPRENEURS Background Small businesses are vital to the continued growth of the Texas economy. Entrepreneurial activities create jobs and income. Entrepreneurial businesses support the Texas economy and increase employment opportunities for Texans. To stimulate economic growth in this area, Workforce Solutions will host bootcamp trainings targeted to assist young entrepreneurs as well as women entrepreneurs interested in creating, sustaining, or expanding a business in Texas.

Current Situation We issued Requests For Proposals in July 2020 to secure the services of qualified organizations to design and specifically tailor a minimum of two bootcamps (a “live” virtual event and a self-paced online format) for each targeted population. We received a total of ten proposals which staff reviewed and scored based on proposed curriculum, approach to delivery, relevant expertise, and financial terms. The highest scoring proposals : Women’s Business Enterprise Alliance for the young adult bootcamp and MassChallenge, Inc. for the women’s bootcamp.

Funding Source Texas Workforce Commission

Budgeted Yes

Action Requested Request approval of two contracts for entrepreneurial bootcamps: Women’s Business Enterprise Alliance, amount not to exceed $29,700; and MassChallenge Inc., amount not to exceed of $49,996. (Staff Contact: Mike Temple) Item 5.g. Page 1 of 1 RENEWAL OF GEOGRAPHIC INFORMATION SOFTWARE MAINTENANCE AGREEMENT WITH ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE Background Each year the Data Services Department renews a maintenance agreement covering Geographic Information System software with the Environmental Systems Research Institute. The contract coverage includes technical support services and continual upgrades to the software system. ArcGIS (Geographic Information System) software is used for mapping, data analysis and various web mapping services to H-GAC users and the public.

Current Situation H-GAC relies on Environmental Systems Research Institute. software products for maintaining and processing Geographic Information System mapping data for 9-1-1, Transportation, and Environmental programs. The 2021 total license maintenance and support renewal cost will be $63,300. This maintenance renewal will provide licensing availability for 58 Geographic Information System users at H-GAC.

Funding Source Geographic Information System Cost Pool

Budgeted Yes

Action Requested Request approval to renew annual maintenance and support agreement with Environmental Systems Research Institute; amount not to exceed $63,300. (Staff Contact: Tanya Nguyen) Item 6.a. Page 1 of 3 MONTHLY FINANCIAL REPORT - NOVEMBER 2020 Background N/A

Current Situation N/A

Funding Source N/A

Budgeted N/A

Action Requested Request approval of the monthly financial report ending November 30, 2020. (Staff Contact: Nancy Haussler)

ATTACHMENTS:

Descr ipt ion Type Monthly Financial Report - November 2020 PDF HOUSTON-GALVESTON AREA COUNCIL Page 2 of 3 FINANCIAL STATUS REPORT For the Eleven Months Ended November 2020

Budget Actual Variance Year to date Year to date Dollar %

Combined Revenues and Expenditures

Revenues $ 342,840,329 $ 348,622,052 $ 5,781,723 2% Expenditures (342,600,450) (346,338,227) (3,737,778) 1%

Change in Combined Fund Balance $ 239,880 $ 2,283,825 $ 2,043,945

Change in Fund Balance by Fund Type

Change in fund balance - General Fund $ 73,778 $ 97,413 $ 23,635

Change in fund balance - Gulf Coast Regional 911 820,883 1,242,656 421,773

Change in fund balance - Enterprise Fund 224,807 943,756 718,949

Total Change in Fund Balances $ 1,119,468 $ 2,283,825 $ 1,164,357

Variance Analysis

The presentation of the change in fund balance by fund type is intended to highlight the effects of revenue and expenditure transactions by fund. The General Fund (GF) consists of those funds not associated with grant programs or enterprise activities. The Special Revenue Fund (SRF) consists of those funds that are restricted for a specific purpose. HGAC's grant programs are in this fund. The Enterprise Fund is used to track activities of the Cooperative Purchasing program and the Energy Purchasing Corporation. The variances of specific revenues and expenditures are explained on the second page of this report.

*** The Cooperative Purchasing program has contributed $943,925 an increase toward the Enterprise fund balance YTD, and the Energy Purchasing Corporation is reflecting a $169.00 decrease in the Enterprise fund balance. HOUSTON-GALVESTON AREA COUNCIL Page 3 of 3 FINANCIAL STATUS REPORT For the Eleven Months Ended November 2020

Budget Year to Actual Year to Variance Annual Budget Date Date Dollar % Revenues General and Enterprise Fund Membership dues $ 395,538 $ 395,538 $ 390,790 $ (4,748) -1% HGAC Energy Purchasing Corporation 130,000 119,167 89,005 (30,162) -25% Cooperative Purchasing fees (a) 5,200,000 4,766,667 4,702,480 (64,187) -1% Gulf Coast Regional 911 fees 2,574,698 2,360,140 3,518,466 1,158,326 49% Interest Income 100,000 91,667 67,413 (24,254) -26% Other (b) 4,145,750 3,800,271 2,807,882 (992,389) -26% Total General and Enterprise Fund revenues $ 12,545,986 $ 11,533,449 $ 11,576,036 $ 42,587 0%

Special Revenue Fund Federal Grant (c) . $ 3,556,065 $ 3,259,726 $ 697,135 $ (2,562,592) -79% State Grants (d) 357,869,623 328,047,154 336,348,882 8,301,728 3% Total Special Revenue Fund revenues $ 361,425,688 $ 331,306,881 $ 337,046,016 $ 5,739,136 2%

Total Revenues $ 373,971,674 $ 342,840,329 $ 348,622,052 $ 5,781,723 2%

Expenditures Personnel $ 26,432,820 $ 24,230,085 $ 24,125,950 $ (104,135) 0% Pass-through funds - grant 333,717,011 305,907,260 312,774,844 6,867,584 2% Consultant and contract services (e) 6,408,180 5,874,165 5,341,324 (532,841) -9% Lease of office space 1,947,854 1,785,533 1,388,603 (396,930) -22% Equipment (b) 2,014,457 1,846,586 326,178 (1,520,408) -82% Travel (f) 240,252 220,231 98,542 (121,689) -55% Other expense 2,985,371 2,736,590 2,282,786 (453,804) -17% Total Expenditures $ 373,745,945 $ 342,600,450 $ 346,338,227 $ 3,737,778 1%

Excess of Revenues over(under) Expenditures $ 225,729 $ 239,880 $ 2,283,825 $ 2,043,945

Variances:

a) The Gulf Coast Regional 9-1-1 program completed work on the grant received from the State earlier than anticipated. This increased revenue reflects revenue received this year, but is earmarked for equipment replacement in 2021. b) Renovations scheduled for the 1st floor of H-GAC's offices are underway. They will be complleted close to the end of the year. We anticipate spending most of the budgeted funds on this renovation in the next three months. c). Federal grant revenue variance is primarily due to the Transportation clean vehicles program. This program has continuation of funding and these revenues will be realized in 2021. d) State grant revenue and the corresponding Pass-thru expense are both higher than anticipated. This is largely due to the childcare program within Workforce Solutions. We projected a decrease of expenses by this time, and that has not materialized. There are sufficient funds to support this program expenditure. e) Consultant and contract services have been reduced during the office shut-down but should resume when the office reopens. Most of these contracts span the fiscal year and the expenses and corresponding revenue will occur in 2021. e) Travel expenses have been curtailed due to the response to COVID-19 and restrictions required by local, state, and federal governmental agencies. It is unlikely that travel expenses will meet expected levels for 2020. Item 7.a. Page 1 of 1 PUBLIC HEARING Background A public hearing is held annually at the Houston-Galveston Area Council located at 3555 Timmons Ln. Houston, TX 77027, to take questions or comments on the proposed agency operating budget for the upcoming fiscal year. The public hearing is held in December following a Budget workshop in October and a presentation of the draft Budget in November.

Current Situation This year, in accordance with the Attorney General's suspension of certain Open Meetings Acts requirements pursuant to the Governor's COVID-19 Disaster Declaration, a public hearing will be held via webinar to receive questions or comments from members of the public on the proposed 2021 H-GAC Annual Budget and Service Plan.

Funding Source N/A

Budgeted N/A

Action Requested Public Hearing on proposed H-GAC 2021 Budget and Service Plan. (Staff Contact: Chuck Wemple) Item 7.b. Page 1 of 2 H-GAC 2021 BUDGET AND SERVICE PLAN Background H-GAC staff prepares an annual budget and service plan setting out recommended program and financial priorities for the Council.

In 2021, H-GAC maintained excellent service, responded to the region's needs during COVID-19 and pursued continuous improvement and exploration. We also elevated policy conversations through our Water Resources Committee and Transportation Policy Council.

Current Situation The annual budget review includes an initial draft presentation which was conducted at our meeting on October 20. The Board received a presentation on a revised draft on November 17 which included a slight increase from October. At the December 15 meeting there will be a Public Hearing and final review for possible adoption.

The total unified budget for 2021 is $386,849,598. This is a 3.51% increase from 2020 due largely to increases in our Transportation, Workforce, and Data Services programs.

Funding Source N/A

Budgeted N/A

Action Requested Request approval of the recommended H-GAC 2021 Budget and Service Plan. (Staff Contact: Chuck Wemple)

ATTACHMENTS:

Descr ipt ion Type 2021 Proposed Budget Summary Cover Memo Page 2 of 2 2021 BUDGET AND SERVICE PLAN SUMMARY

Unified Budget $386,849,598 Increase 3.51% 13,103,652

Pass-through funds 341,090,281 Increase 2.21% 7,373,270

Operations 40,028,933 Increase 0.55% 220,318

Increases

Shared Services 100.00% 5,134,584 Transportation 49.21% 7,714,142 Local Activities 25.96% 31,100 Data Services 21.44% 881,163 Workforce 0.27% 872,287

Decreases

Community & Environmental 14.11% 702,819 Capital Expenditures 18.82% 307,600 Public Services 5.26% 440,190 Aging 0.53% 79,015

Employee Benefits Released Time 14.5% $2,723,685 Insurance, Retirement and Social Security 32.4% 6,075,515 Prior Year Carry Forward .35% 60,000 Total Benefits & Release Time 47.25% $8,859,200 Item 7.c. Page 1 of 3 SALARY AND BENEFIT PROGRAM - 2021 Background H-GAC operates under a policy-oriented job classification system, emphasizing:

• Common classifications of similar jobs • Ranges structured to allow recognition of performance • Individual evaluation of each employee • Pay for performance

The Board annually reviews and approves agency job classifications. The classifications group comparable jobs, and set the minimum and maximum salary for each job group. An individual's compensation within the range will be determined by management’s evaluation of current performance and expectation of future performance.

Current Situation Each year the schedule is reviewed for equity using multiple data sources. This year's review has included a study of the state salary schedule, other regional councils, and our local market.

Additionally, state law requires regional councils to implement a salary classification system similar to the State of Texas compensation system. Salary classifications must be submitted to the Governor’s office for review. A comparison of H-GAC’s 2021 Proposed Salary Ranges to the State Salary Ranges is provided in Attachment A.

Insurance programs and leave benefits will continue in effect in accordance with current Board authorization. A Wellness Benefit Program which included flu shots and a Health Fair along with quarterly wellness challenges will continue this year. Additionally, H-GAC is increasing its efforts to automate information to our employees so they can be better consumers of healthcare services. These efforts are intended to control and reduce healthcare claims.

Recommendations:

• Recommend a salary structure which is comparable to the State’s schedule. This schedule will allow growth of personnel through promotions, but there is no merit pool or cost of living salary increases proposed in the 2021 budget. Should economic conditions change throughout the year, management may recommend that the Board review limited merit increases at that time.

• Recommend continuation of employee Medical, Dental, Vision, Long-Term Disability and Basic Life and AD&D insurance benefits consistent with current approved contracts.

• Recommend adding two days to the holiday schedule. Staff recommends adding Martin Luther King Day and Veterans Day to the observed holidays of H-GAC.

Funding Source N/A Budgeted Page 2 of 3 N/A

Action Requested Request approval of recommended employee salary ranges for 2021. (Staff Contact: Nancy Haussler)

ATTACHMENTS:

Descr ipt ion Type Salary Schedule 2021 Cover Memo Page 3 of 3

H-GAC Proposed Salary Range Matrix 2021

MRP 2021 Proposed Salary Range 2020 Salary Range State H-GAC Level H-GAC Description H-GAC Titles Salary 2019-2021 State Salary Range Midpoint Minimum Midpoint Maximum Minimum Midpoint Maximum Group 14 Management VI $211,534.00 Executive Director $162,000 $211,534 $261,068 $162,000 $211,534 $261,068 Group 7 $162,000 $261,068 12 Management V $165,475.00 Chief Financial Officer $122,972 $165,475 $207,977 $122,972 $165,475 $207,977 B-32 $122,972 $207,977 12 Deputy Executive Director 11 Management IV $150,431.00 Director $111,793 $150,431 $189,069 $111,793 $151,849 $191,905 B-31 $111,793 $189,069 10 Management III $136,756.00 Assistant Director $101,630 $136,756 $171,881 $101,630 $138,045 $174,459 B30 $101,630 $171,881 10 Management III Senior Manager 9 Management II $124,323.00 Manager $92,390 $124,323 $156,256 $89,512 $124,056 $158,600 B-29 $92,390 $156,256 8 Mgt I - Prof. IV $93,406.00 Accounting Administrator $69,415 $93,406 $117,397 $63,104 $91,131 $119,158 B-26 $69,415 $117,397 8 Facilities Administrator 8 Principal Industry Liaison 8 Principal Data Analyst 8 Principal Financial Analyst 8 Principal GIS Analyst 8 Principal Outreach Coordinator 8 Principal Planner 8 Principal Program Coordinator 8 Principal Purchasing Coordinator 8 Procurement Administrator 8 Program Administrator 8 Project Manager 8 Systems Operations Administrator 8 Web Administratator 7 Professional III $72,789.00 Account Liaison $55,184 $72,789 $90,393 $51,614 $71,682 $91,749 B-23 $55,184 $90,393 7 Lead Benefit Counseling Coordinator B-22 7 Lead Ombudsman Coordinator 7 Lead Procurement Coordinator 7 Lead Program Coordinator 7 Lead Quality Assurance Analyst 7 Senior Agency Webmaster 7 Senior Auditor 7 Senior Communication Coordinator 7 Senior Data Analyst 7 Senior Education Coordinator 7 Senior Financial Analyst 7 Senior GIS Analsyt 7 Senior Human Resources Coordinator 7 Senior Loan Coordinator 7 Senior Operations Analyst 7 Senior Outreach Coordinator 7 Senior Planner 7 Senior Program Coordinator 7 Senior Quality Assurance Coordinator 7 Senior Specifications Analyst 7 Senior Systems Analyst 7 Senior Webmaster 7 Senior Writer and Editor 6 Professional II $63,616.00 Accountant $48,278 $63,616 $78,953 $42,244 $61,191 $80,137 B-21 $48,278 $78,953 6 Accounting/Finance Coordinator B-20 6 Administrative Coordinator B-19 6 Auditor 6 Data Analyst 6 Excutive Assistant 6 Financial Analyst 6 GIS Analyst 6 Human Resources Coordinator 6 Inspector 6 Loan Coordinator 6 Operations Analyst 6 Outreach Coordinator 6 Planner 6 Procurement Coordinator 6 Program Coordinator 6 Quality Assurance Analyst 6 Specifications Coordinator 6 Systems Analyst 6 Webmaster 5 Professional I $51,985.00 Accounting/Finance Specialist $39,521 $51,985 $64,449 $36,976 $51,196 $65,416 B-18 $39,521 $64,449 5 Administrative Assistant 5 Audit Specialist 5 Benefits Counselor 5 Human Resources Specialist 5 Loan Specialist 5 Ombudsman 5 Outreach Specialist 5 Planner Specialist 5 Program Specialist 5 Quality Assurance Specialist 5 Web Specialist 5 Systems Specialist 4 Skilled III $45,024.00 GIS Technician $34,918 $45,024 $58,000 $32,976 $44,467 $55,957 B-16 $34,918 $55,130 4 PC Support/Helpdesk Tech 4 Program Support 3 Skilled II $40,139.00 Print and Mail Associate $31,144 $40,139 $49,134 $29,439 $39,287 $49,134 A-14 $31,144 $49,134 3 Receptionist A-13 2 Skilled I $33,844.00 None $26,332 $33,844 $41,355 $26,332 $33,844 $41,355 A-11 $26,332 $41,355 1 Support $29,320.00 Intern $23,781 $29,320 $34,859 $23,781 $29,320 $34,859 A-09 $23,781 $34,859 Item 8.a. Page 1 of 3 SELECTION OF EXTERNAL AUDITOR FOR ANNUAL AUDIT Background The H-GAC Audit Committee periodically receives and reviews proposals from CPA firms to provide external audit services in compliance with federal and state laws and the Single Audit Act Amendments of 1996. In January 2020, the Audit Committee recommended, and the Board approved the selection of the CPA firm of BKD CPAs & Advisors (BKD) as the independent external auditor for H-GAC. As part of our agreement with the CPA firm, H-GAC reserves the right to complete a contract each year.

Current Situation The external auditor (BKD) completed its first year of financial auditing of H-GAC covering fiscal year-end 2019. H-GAC staff directly affected by the audit were given an opportunity to evaluate the performance of BKD via a rating form distributed by the H-GAC Internal Audit department (see attached form). In addition, a narrative survey form (see attached) was also distributed to the Executive Director, Chief Financial Officer, Director for Human Services, Director for Internal Auditing and all current members of the H-GAC Audit Committee.

The results of the H-GAC staff evaluations of the external auditor and the comments from the narrative survey were overall very positive regarding services from BKD. The staff as well as the Audit Committee has been pleased with the professional audit services of the BKD CPA firm. The Executive Director and the Audit Committee agreed to continue using the services of BKD for the annual audit of H-GAC financial records for fiscal year ending 2020.

Funding Source Indirect cost funding

Budgeted Yes

Action Requested No action needed; previous authorization allows for continuing use of professional audit services from BKD as the independent external auditor for the H-GAC fiscal year ending 2021. (Staff Contact: Charles Hill)

ATTACHMENTS:

Descr ipt ion Type External Auditor Performance Evaluation Cover Memo External Auditor Narrative Survey Backup Material Page 2 of 3 H-GAC Internal Audit External Auditor Performance Evaluation

Please rate the following statements (select one rating only; 5 is highest rating) Questions Ratings N/A 1 2 3 4 5 1. The performance of the external auditors (BKD) met or exceeded the performance of the previous external auditors.

2. The external auditor’s team demonstrated integrity, objectivity and independence; and was forth coming on difficult situations such as addressing remote auditing challenges due to the COVID-19 pandemic.

3. The external audit team leveraged the use of technology and audit tools; (e.g. use of artificial intelligence, data analytics and robotics).

4. The external auditor’s communication process and interactions with H-GAC staff were effective during the audit to meet deadlines, communicate expectations and discussed audit issues candidly and professionally.

5. The external auditor’s team members had appropriate qualifications, adequate industry knowledge and understood H-GAC’s risks and control processes.

6. The external auditor’s engagement partner assigned sufficient resources for the audit, communicated matters, maintained appropriate levels of contact and dialogue with H-GAC staff.

7. The external auditor’s plan and methodology appropriately addressed H-GAC’s area of higher risk, including identification and testing of major federal and state programs.

8. The external auditor discussed the audit results with staff and senior management and offered valued added recommendations or suggestions to strengthen H-GAC’s controls and/or financial reporting.

9. The external auditor’s quality of services delivered value for the fees charged.

10. Based on the services and deliverables of the external auditor, I would recommend H-GAC retain BKD services for a second year.

Completed By: ______Date: ______

Job Title: ______

Page 1 of 1 H-GAC Internal Audit External Auditor Evaluation Survey Page 3 of 3

1. What did you think of the professionalism exhibited by the External Audit Staff?

2. How were their audit presentations? Were they informative and helpful? Please describe.

3. Do you think the audit team demonstrated good business knowledge, experience, and competence? Please describe.

4. If audit recommendations and/or suggestions were made; were they constructive, meaningful, relevant, and actionable? Please describe.

5. Please describe your overall evaluation of the External Audit Team’s performance and what could be improved in the future.

Page 1 of 1 Item 8.b. Page 1 of 8 INTERNAL AUDIT ANNUAL PLAN FOR FISCAL YEAR 2021 Background The H-GAC Internal Audit Charter requires the Director of Internal Audit to prepare an annual plan to be approved by the Executive Director, the Audit Committee, and the Board of Directors. The H- GAC Internal Audit department consists of five auditing professionals.

Current Situation The Director of Internal Audit has prepared the Internal Audit Plan for 2021 based on a risk assessment of the auditable areas and input from Board Members, the Executive Director, and the Chief Financial Officer. Some of the items in the plan are projects continued from the previous year. The Executive Director has reviewed the plan. This report was presented and discussed with the members of the H-GAC Audit Committee on December 9, 2020. The Audit Committee agreed to submit this information for approval to the H-GAC Board of Directors.

The plan lists the mission, responsibilities, core values, and short-term goals for the department as well as an allocation of staff hours to various anticipated projects. The annual plan includes subrecipient/contractor monitoring, regular internal audits, program reviews, follow-up audits, and various special projects. Attached is the complete report for the annual plan for 2021.

Funding Source Indirect cost funding

Budgeted Yes

Action Requested Request approval of Internal Audit Annual Plan for Fiscal Year 2021. (Staff Contact: Charles Hill)

ATTACHMENTS:

Descr ipt ion Type Internal Audit Annual Plan 2021 Backup Material Page 2 of 8 Page 3 of 8 Page 4 of 8 Page 5 of 8 Page 6 of 8 Page 7 of 8 Page 8 of 8