El Paso City Council Work Session - July 21, 2025: Grants, Procurement, and Economic Development
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El Paso City Council Work Session - July 21, 2025
The El Paso City Council held a work session on July 21, 2025, from 9:02 AM to 4:20 PM, with a recess from 11:00 AM to 11:10 AM and an executive session from 12:29 PM to 4:12 PM. The meeting covered three major agenda items: the City's grants portfolio and federal legislative updates, an overview of the procurement sourcing policy and process, and an update on the Comprehensive Economic Development Strategy (CEDS). Council also took action on several executive session items, including claims and utility matters.
Presentation on Grants Portfolio and Federal Legislative Updates
- Presenters: Elda Rodriguez-Hefner (Office of the Comptroller), Alejandra Gorski (Federal Legislative Liaison), Omar Martinez (Strategic and Legislative Affairs).
- Key Statistics: The city manages a grants portfolio of $1.4 billion since 2016, with $505 million currently active and approximately $100 million incoming. Federal grants account for 94% of all grants. The city has had zero single audit findings for nine consecutive years (since 2016).
- Losses Due to Federal Actions: As of June 30, 2025, the city has lost $11 million in rescinded or suspended grants (including $13.4 million returned to FEMA for migrant crisis advanced funding) and $8.25 million in deprogrammed incoming grants, for a total of $19.3 million. Losses were concentrated in public health, migrant response, DEI-related grants, and community project funding.
- Federal Legislation Impact: The "One Big Beautiful Bill Act" (HR 1) rescinded the Neighborhood Access and Equity Grant ($2 million for a downtown bridge feasibility study). However, the Act made permanent the Low-Income Housing Tax Credit, New Market Tax Credits, and Opportunity Zone program, and increased funding for CBP overtime and defense.
- City Strategy: Staff will develop a 2026 city grants strategy (to be presented in September) focusing on diversifying funding sources, using AI for grant writing, hiring two additional grant positions, and possibly hiring a federal lobbyist. City Manager Dionne Mack noted that a proposed state law may limit city lobbying.
- Council Questions: Representative Chavez asked about preventing losses; staff replied that advocacy efforts could not overcome congressional votes. Representative Maldonado-Rocha asked for grant breakdown between infrastructure and operations. Representative Canales requested data on the percentage of grants in the operating budget.
- Representative Limon’s Comment: She objected to calling HR 1 "beautiful," calling it vindictive and harmful to the poor.
Presentation on Procurement Sourcing Policy and Process
- Presenter: Claudia Garcia, Purchasing and Strategic Sourcing.
- Overview: This was the first of three sessions. The Purchasing Department has 31.5 positions (75% filled), 50% with 6 months to 3 years of experience. In FY2024, 552 procurements were facilitated; in FY2025, 566. Average annual spend is $390 million.
- Policy Highlights: The city uses an online bidding system (IonWave) launched May 2022, with cooperative programs (14 approved), and the "Higher El Paso" local preference program (certification fee $150 for 3 years). The policy prohibits sequential purchases, unauthorized purchases, and unfair competition.
- Evaluation Committees: Committees are formed by user departments; criteria include experience and project complexity. For larger projects, five raters at a senior level are used. Evaluations are done individually, not as a group.
- Vendor Protests and Debriefings: Vendors may appeal awards; debriefings are available upon request.
- Council Questions and Concerns:
- Representative Canales requested data on timely bid closings and expressed concern about cooperative programs being approved via the budget resolution without individual votes or caps. He asked for a list of the 14 co-ops and their usage.
- Representative Rocha asked how to filter open bids by district; staff clarified IonWave does not sort by district.
- Representative Chavez asked about rotating and evaluating raters; staff explained training and qualification standards.
- Representative Limon asked about consequences for sequential purchases; staff said training is provided and repeated violations may lead to HR action.
- Representative Nino asked about inflation adjustments to Higher El Paso thresholds; staff noted the program will be revisited.
- Representative Trejo asked about vendors in litigation; staff are developing a policy.
- Representative Acevedo asked about tracking local vendor awards; staff provided $23 million local out of $91 million in FY2025 marketplace purchases.
- Representative Trejo asked about training for certified vendors; staff said training is public, not exclusive to certification.
- Next Steps: Second session will cover a competitive procurement process in detail; third session will cover contract administration and vendor outreach.
Presentation on Comprehensive Economic Development Strategy (CEDS)
- Presenter: Adriana Pulecio, Economic and International Development, with Annette Gutierrez (Rio Grande Council of Governments).
- Purpose: The CEDS is a five-year regional economic development plan required by the Economic Development Administration (EDA). For the first time, it includes El Paso County separately from rural counties and incorporates Mexico (Ciudad Juarez and Chihuahua) as partners.
- Priorities: (1) Prioritize regional projects using a benefit-cost analysis; (2) Align regional policies and strategies; (3) Secure new funding sources (state, federal, philanthropy, foreign direct investment).
- Process: A steering committee of about 65 members formed subcommittees. A project submission form is available (QR code). Projects are categorized as "economic development projects" (ready for funding) or "strategies" (not yet ready). Projects will be ranked using criteria: project readiness, private investment, job creation, revenue generation, sponsor capacity, external funding, economic impact, local funding, and external factors.
- Notable Submitted Projects: Isleta-Zaragoza Port of Entry modernization, Advanced Manufacturing District, and a binational rail project (32 miles, Ciudad Juarez to New Mexico).
- Timeline: Public outreach sessions this summer; project submission deadline in September; 30-day public comment period in October; council approval in November; binational council session with Ciudad Juarez; final submission to EDA by December 2025.
- Council Reaction: No questions; Council Member Canales praised the presentation.
Key Outcomes
- Grants and Federal Updates: Staff will present the 2026 city grant strategy in September. Council will receive data on grant percentage in the operating budget.
- Procurement Policy: Staff will present a list of 14 approved cooperative programs and their usage before the August budget resolution vote. The next two procurement sessions will occur later this year.
- CEDS: Council will be asked to approve the final CEDS document in November 2025.
- Executive Session Actions:
- EX1 (Claim of Ana Mack): Motion to deny claim – passed unanimously.
- EX2 (Claim of Jessica Saldecke): Motion to deny claim – passed unanimously.
- EX3 (Claim of Hazel Sky Perez): Motion to deny claim – passed unanimously.
- EX4 (El Paso Electric Macho Springs): Motion to authorize settlement discussions – passed unanimously (Representatives Acevedo, Rocha, Nino, and Limon disclosed campaign contributions from El Paso Electric Employees PAC).
- EX5 (Good Cause Exception): No action.
- EX6 (Texas Gas Service rate increase): Motion to suspend rate increase for 90 days – passed unanimously.
- EX7 (PUC fuel adjustments): Motion to hire outside counsel and consultants – passed unanimously.
- EX8 through EX12: No action.
- Meeting adjourned at 4:20 PM.
Meeting Transcript
Well, good morning, everyone. We are going to call our work session meeting to order, and hopefully everyone is enjoying the beautiful rain outside. It's quite a nice change for El Paso. Ms. Prime. Yes, sir. Good morning. This is a work session of the El Paso City Council for Monday, July 21st, 2025. It is 9 02 AM. Mayor Johnson is present and presiding in Council Chambers, along with Mayor Pro Tem Chavez, Representative Acevedo, Representative Maldonado Rocha, Representative Nino, Alternate Mayor Pro Tempiero, Representative Limon, and Representative Canales. Mayor, we have a core. Thank you. Representative Rocha. And to the other nation under God. All right, Ms. Prime, agenda item number one. Yes, sir. Item number one is a presentation on the City of El Paso grants portfolio and federal legislative updates. Good morning. Good morning, Mayor Council. Can I T bring up the presentation, please? Do we have a presentation? It's up there. Oh, okay. All right. Well, good morning again. Um this presentation is um on the grants administration and federal updates. This I'm Elder Rodriguez Hefner, Office of the Comptroller Grants Administration Division. This is a combined effort with the strategic and legislative affairs department. And this item falls under goal six, setting the standard for sound governance and fiscal management. Our agenda today is going to cover um the results of single audits in 16, the citywide grants portfolio and grant awards by department. And then now I will pass it over to strategic and legislative affairs folks, and they will discuss the executive orders, the city response to the executive orders, and the one big beautiful bill, the rescinded and suspended grants, and uh our citywide grants strategy going forward, starting FY26. The grants administration's division's role is really we are the clearing house of the city's grants activity. So think about it as the one-stop shop. We take care of submitting applications, accepting awards, make sure making sure that we report that we conduct the reports and we are in compliance. You will see that on the web.1 billion dollars. That comes from the state. But this gives you an idea of how much we depend on the federal government for grants. They start at the federal level and go to the states, and the states pass it on to us. That's your tech stocks grants, your office of the governor grants, your uh Texas Department of State and Health Services grants. So there's a few. There's quite a few that that uh are passed through grants. And here is our very favorite slide. This table shows you the last uh six years, but I will make a uh point here that for the last nine consecutive years, the city has not had audit findings in the single audit. That's huge because as you can see, even our uh local partners have um they've done very well, but they have had findings. Uh, when we compare ourselves to other cities, um you can see that we are well ahead, and uh we're just very proud of that. Um that doesn't happen by luck or by chance, it comes with a lot of work. Our strong internal controls is what makes that happen. Uh the the work that the departments do at their level, their finance staff, um, their the strategic and legislative affairs folks, and certainly the grants administration office. Um I'm very proud of them, uh, and they're here this morning.
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