San Antonio Audit Committee Meeting – June 3, 2026

The Audit Committee of the San Antonio City Council met on June 3, 2026, at 10 a.m. under the chairmanship of Chair Via Gran. The committee reviewed multiple procurement briefings, approved contract awards, and considered two internal audit reports covering janitorial services and short-term rental compliance. All votes were unanimous. The meeting adjourned at 11:50 a.m.

Consent Calendar

• Approval of the minutes of the previous meeting (approved unanimously).
• Acceptance of one audit item on the consent agenda (approved unanimously).

Public Comments & Testimony

• No members of the public signed up to speak.

Discussion Items

Briefing on Solicitation for Fire Station No. 33 (Item 3)

• Presentation by Mike Shannon, Director of Capital Delivery, on a pre-solicitation for construction of a new fire station at 2935 Castroville Road (Council District 5). The project is a 2022 bond project with an estimated total value of $12,060,377. The contract term is approximately 400 days. Evaluation criteria emphasize experience (35 points), project understanding (30 points), local experience (10 points), pricing (15 points), and SBE prime (10 points). The solicitation is set to release after the meeting, with council consideration expected in October 2026.
• Council members requested that the district council member (Councilwoman Castillo) be kept informed and that community engagement be provided during construction. No vote was taken; the item was for briefing only.

Post-Solicitation Briefings for Three Construction Contracts (Items 4, 5, 6)

• Father Roman Community Center (Item 4): New community center in District 3, estimated $7.7 million (certificates of obligation). 13 submittals, 4 non-responsive. Recommended vendor A based on highest scores. Price scores: vendor A received 11/15, while vendor F received 15/15 (lowest price).
• Fire Station No. 21 (Item 5): New fire station in District 3, estimated under $10 million (certificates of obligation). 11 submittals, 7 non-responsive. After interviews, vendor B was selected over vendor A due to higher interview scores.
• Kenwood Community Center (Item 6): Replacement in District 1, estimated under $6 million (certificates of obligation). 16 submittals, 5 non-responsive. Recommended vendor A.
• Discussion: Councilwoman White expressed concern that the top-ranked vendors (A) for items 4 and 5 did not receive maximum price points, while lower-scoring vendors received full price points. She asked for an explanation of the price differential and emphasized the need for cost-effectiveness given the city's budget shortfall. Staff explained that evaluation committees are blinded to pricing until after technical scoring to prioritize quality; price points are relative to the lowest bidder. Councilman Meskinzals questioned the interview process, noting that for Fire Station 21, interviews flipped the recommendation, and suggested that interviews should be required for all high-dollar contracts. Chair announced a subcommittee to review procurement procedures.
• Outcome: A motion to forward items 4, 5, and 6 to full City Council for consideration passed unanimously. Council consideration is scheduled for June 18, 2026.

Post-Solicitation Briefing for Toxicology Laboratory Services (Item 7)

• Presentation by Rick Riley (SAPD Assistant Director) for a contract to provide toxicology lab services (blood analysis for DWI/DUI cases). Estimated total value $5.6 million for three years with two one-year renewal options. Two submittals: vendor A (local, scored 76 points) and vendor B (46 points). Evaluation committee selected vendor A without interviews.
• Discussion: No questions. The committee approved proceeding to council.

Post-Solicitation Briefing for On-Call Marketing and Communication Services (Item 8)

• Presentation by Alana Reed, Director of Communications and Engagement, for citywide on-call contracts across five service categories (advertising/marketing, graphic design, public relations, community engagement, video production). Total contract authority $23 million over three years with two one-year renewals (~$4.6 million annually). 65 proposals received; 14 firms recommended (19 contract awards across categories).
• Discussion: Councilwoman White asked about AI use, in-house capacity, and metrics. Chair noted the city has no formal AI policy. Councilman Meskinzals asked about SBE subcontracting and effectiveness metrics. Staff noted the contract is capacity-based; actual spending depends on department budgets and is subject to existing procurement rules.
• Outcome: Motion to approve passed unanimously.

Audit of Janitorial Services Contract at Convention Center and Alamo Dome (Item 9)

• Presentation by Audit Manager Michael Gutierrez. The audit found that the Convention and Sports Facilities Department (CSF) is not effectively managing and monitoring the janitorial services contracts for both venues. Key findings:
  • Pre-employment screenings (background checks, drug tests, I-9 verification) were not performed by the prime contractor or subcontractors as required. Three unknown subcontractors were performing work.
  • Staffing levels were not properly tracked; sign-in sheets at the Alamo Dome were not maintained. At the Convention Center, staffing shortfalls were not documented within 48 hours.
  • Custodial and conversion work inspections were not consistently recorded.
  • Invoice accuracy could not be verified for the Alamo Dome; of 37 invoices totaling $553,000, 20 lacked sign-in sheets to confirm hours worked.
  • Physical access control procedures were inadequate at the Alamo Dome.
  • Subcontractors did not meet insurance requirements.
• Patricia Muskiscantor (CSF Director) stated that all recommendations have been implemented as of June 2026, with new policies, forms, and training in place.
• Discussion: Councilman White expressed concern about potential overpayment for unverified hours. Patricia assured that work was completed but acknowledged documentation gaps. Councilman Meskinzals asked if the Office of Municipal Integrity was involved; staff will follow up.
• Outcome: Motion to accept the audit and management response passed unanimously.

Audit of Short-Term Rental (STR) Compliance (Item 10)

• Presentation by Audit Manager Abigail Esteves. The audit found that Finance and Development Services were not adequately monitoring compliance with hotel occupancy tax (HOT) ordinances for short-term rentals. Issues included:
  • STR properties not properly identified; 921 were operating without permits.
  • Revenue reporting was self-reported and not validated.
  • Notices for non-reporting were not sent, and past-due HOT was not pursued.
  • Contract monitoring of vendor Avenue was insufficient.
• Troy (Finance) noted that an ordinance amendment effective February 2025 now requires platforms like Airbnb and VRBO to remit HOT directly, yielding a 72.1% increase in STR HOT collections ($9.6 million in FY2025). Currently 3,350 permitted STRs out of approximately 4,370 total.
• Discussion: Councilman White emphasized the need to collect uncollected revenue before considering tax increases. Councilman Meskinzals asked about covenant/deed restriction acknowledgments and departmental coordination. Chair noted the audit provides a baseline for future policy improvements.
• Outcome: Motion to accept the audit and management response passed unanimously.

Key Outcomes

• All motions were approved unanimously by the Audit Committee.
• Items 4, 5, and 6 will be forwarded to the full City Council on June 18, 2026, with additional explanations on price scoring requested.
• A subcommittee will be formed to review procurement procedures and best value criteria.
• Both audits (janitorial services and short-term rentals) were accepted; management action plans are in progress with a completion date of June 2026.