General Land Office Water Deal Moves Forward

Land Commissioner Jerry Patterson is finalizing an arrangement that would result in the state selling water to burgeoning communities in Central Texas. This particular arrangement is one of many the Land Commissioner has entertained recently, with the belief that water deals will be the next major source of funding for public schools.

Within this specific arrangement, WaterTexas, an Austin-Based company, would secure water rights, obtain permits, and construct contracts with utility customers. The General Land Office would then purchase the project with funds from the School Land Board, and thus create a recurrent source of revenue, which could be used for land acquisitions or deposited into the Permanent School Fund. According to the Austin-American Statesman, three potential customers have already committed, should the deal proceed: Windemere Utility Co., Hornsby Bend Utility Co., and Metro H20 Ltd.

The plan under consideration--which centers around the towns adjacent to Texas 130, the I-35 bypass--would be the first time the General Land Office directly finances water sales. As construction on Texas 130, a main component of the Department of Transportation's Trans Texas Corridor project, increases, the project itself would grow to accommodate the adjacent communities.

State Senator Teel Bivins Nominated to Become Ambassador

Teel Bivins, a Texas State Senator since 1989, submitted his resignation letter to Governor Perry on Wednesday of this week. Bivins, a career rancher and lawmaker representing Amarillo, served as the chair of the Senate Finance Committee, in addition to sitting on both the International Relations and Trade, and Jurisprudence and Government Organization committees.

Recently, President Bush nominated Bivins to act as the U.S. ambassador to Sweden. In his resignation letter, Bivins demonstrated concern that Amarillo be appropriately represented at the Texas Capitol. "If I am fortunate enough to be confirmed by the U.S. Senate, it is very important to me that the voters of Senate District 31 have the opportunity to select new representation in anticipation of a potential Special Session on Public School Finance in April 2004."

His resignation will be in effect as of 5:00 p.m., January 12, 2004.

State Representative Steven Wolens Will Not Seek Reelection

Rep. Steven Wolens announced his plans to retire after completing his current term in office. Wolens, a Democrat, has served in the Texas House of Representatives for twenty-four years and has authored legislation on a variety of issues, including education, ethics, law enforcement, and many others.

For many years, the Representative served as the chairman of the State Affairs and Business and Commerce Committees and was appointed by the Republican Speaker of the House to serve as Chairman of the Select Committee on Ethics.

During his twelve sessions in the Legislature, Wolens was named one of the "Ten Best Legislators" in the state by Texas Monthly six times and was awarded the Common Cause Public Service Award three times, in addition to numerous other accolades from the Texas Municipal League, the AARP, the Greater Dallas Crime Commission, and others.

Wolens is a partner at the Baron and Budd law firm in Dallas and is married to Dallas Mayor Laura Miller.

Congress Approves Medicare Bill to Help Border Hospitals

On November 26, Congress approved a Medicare Bill that includes special provisions for hospitals that service large numbers of illegal immigrants. It allocates $1 billion over the next four years to help local hospitals cover the costs of emergency services to the uninsured and unregistered migrants. Hospitals are required to treat anyone who comes into an emergency room, regardless of citizenship status.

Texas hospitals will receive $200 million in reimbursements as a result of the bill, if President Bush signs it into law. This will be a relief to many border hospitals where illegal immigrants account for as much as six percent of their patient load.

The $1 billion rider was attached to the landmark $365 billion Medicare legislation that provides for prescription drug benefits for seniors and allows private insurers to cover a portion of Medicate beneficiaries. The rider reimburses healthcare providers in 17 states with the highest immigrant-care expenses nationally. According to the bill, Texas will receive 20 percent of the funding, second only to California.

Critics have claimed that the rider will only invite and support illegal immigration by providing federally funded healthcare for undocumented migrants. Supporters argue that the bill is necessary to support local and state hospitals that pay out of pocket to adhere to an "unfunded federal mandate," in Texas Senator John Cornyn's words.

TEXAS SHORTS:

Rich and Poor Districts Join Together in School Funding Suit

Wealthy and poor school districts are mounting a unified challenge to the state's current school finance system. While property-rich and property-poor districts have often been on opposing sides of the Robin Hood school funding arrangement, they have joined together to demand that Texas must allocate more money for its public schools. Austin lawyer Buck Wood filed a suit on December 1 on behalf of over 60 property poor districts, in alliance with Dallas lawyer George Bramlett, who is representing a group of wealthy school districts. Travis County District Judge John Dietz will probably try the case sometime in 2004. The trial date depends on if and when Rick Perry calls a special session for the legislature to deal with the issue. Already Texas lawmakers have begun to tackle the problem: a joint legislative committee will begin holding public hearings across the state in March and several major studies by outside institutions are scheduled to begin in January and February.

Budget Cutbacks in State Funding of Health Care Programs Continue to Impact

The University Healthcare System in Bexar County okayed a budget of $569.7 million last week, a number which went to Bexar County commissioners for approval this week. Despite the state cutbacks, however, their health system's tax rate remained the same. State cuts, which went into effect on September 1, have resulted in a $4.6 million reduction in payments for medically needy persons. During the last cycle, the Legislature tightened eligibility for Medicaid and the Children's Health Insurance Program across the state. In Bexar County, this resulted in an addition of 38,814 persons to the already 260,000 uninsured. The hospital district expects to lose around $1.6 million dollars for services rendered to uninsured individuals who can't pay the hospital fees. In efforts to save money, the system eliminated a number of vacant positions, voted to become self-insured for employee benefits, and obtained cheaper malpractice insurance rates, which will suffice in handling the reduced funding this year. Leni Kirkman, director of media relations for the hospital, expressed concern that those were one-time only savings, and would not alleviate the shortfalls in years to come.

Texas A&M Won't Use Race in Admissions Consideration

Texas A&M University President Robert Gates announced that the school would eliminate race as a factor in the admissions and scholarship process earlier this week. Considering that the school has concentrated efforts on bringing in more minority students (82% of its undergraduates are caucasian), the announcement came as a surprise. Instead of focusing on the admissions process, Gates wants to instead enlarge minority outreach efforts and increase scholarships for first- generation college students who come from lower income families. The initiative must pass the school's Board of Regents before it goes into effect. A vote was scheduled for December 4, but delayed due to committee meetings. Individuals on the Board of Regents, which includes minority members, state that support for the policy is unanimous. Black lawmakers Senator Rodney Ellis, D-Houston and U.S. Representative Sheila Jackson Lee, D-Houston, expressed concern over the decision, even entertaining calling for a federal civil rights probe, and are planning to meet with Gates to discuss it.

Tolls Down the Road?

State officials are considering a change in policy that would force road planners to examine tolls for any new highway additions or state roads. The Texas Transportation Commission can currently only afford one third of needed road improvements, and has identified tolls as a method of raising needed revenue. The Commission will vote on the policy on December 18. While the policy will require planners to consider how much money could be generated with a toll for any given new highway or state road, it does not necessarily call for the construction of a toll.

Houston Mayoral Election to Occur on Saturday

The citizens of Houston will decide between Bill White and Orlando Sanchez in a runoff election for the city's mayor on December 6. Both have been campaigning for over a year for the position, focusing in on key issues such as flood management and improving urban transportation. In the November 5 election, White won 38% of the vote and Sanchez won 33%.

NEW SPI GOVERNMENT OPPORTUNITY PACKAGE

As a follow up to its successful roll out of The Guide to the Texas State Government Marketplace, and because of repeated requests, SPI is announcing a new procurement information package comprised of:

• Electronic information on unannounced procurement opportunities for over 120 state agencies plus major cities, counties, and other entities (you choose 3 industries).
  
  
• One year of customized daily bid monitoring.

Event Links

TASSCC State of the State - 12/5/03

Inside ID: The Identification Solution Megashow - 12/8/03 - 12/10/03

Small Minority and Women Business Owners Conference (S.A.) - 12/10/03

Texas Higher Education Human Resources Association, Winter Conference - 01/11/04-01/13/04

Second Annual Courts and Local Government Technology Conference - 01/28/04-01/29/04

2004 Texas Higher Education Coordinating Board Facilities Conference - 02/04/04-02/06/04

Past ABJ articles by Mary Scott Nabers

Fingering opportunities in biometric technology - 11/03/2003

It's smart for vendors to watch 'smart card' deals - 10/6/2003

Watch Cap Metro, AISD for vendor opportunities - 9/22/2003

Watch state water board for flow of grant money - 9/8/2003

New state laws open up market at state agencies - 8/25/2003

Insider Archives

Volume 1 Issue 3 - 11/20/03

Volume 1 Issue 2 - 11/13/03

Volume 1 Issue 1 - 11/7/03

Believe It! It Is Possible to Win Government Business Without Having to Bid For It!

Government contractors would like the public sector marketplace better were it not for the fact that most business is secured through a bureaucratic bidding process. Common complaints include the length of time that it takes to close business; the cost of preparing formal bid documents; and the bureaucracy of the entire process.

The good news is that changes are occurring quickly and dramatically…and some smart vendors are now winning an abundance of government business without a lot of hassle. Government procurement is becoming more efficient and as a result it should be even more attractive to vendors and service providers.

To win government business, the first rule is to be registered with the State. After that, the most important element is in understanding how procurement really works and how to benefit from efficient contracting methods.

Almost all government insiders believe that e-procurement will be a reality very soon. If so, that system will make the bidding process more efficient than ever. In the meantime, there are some lesser known contracting vehicles in place that allow contractors to win government business without having to prepare lengthy and costly bid documents.

No Formal Bid Required- Current law allows agencies to purchase goods and services up to a certain amount (usually $10,000) without formal bidding. An agency can make purchases without competition if the total cost is under a designated amount, usually $2,000. And, some agencies make purchases for up to $25,000 by following specific rules that allow for an abbreviated bid process.

Reverse Auctions- Another way to win quick business with governmental agencies is through Reverse Auctions. This is a system whereby suppliers are invited to bid online for something a governmental agency wants to purchase. The product of service being sought is described online and vendors are asked to respond.

The government's objective in a Reverse Auction is to allow all interested vendors to watch the process and compete openly. Unlike traditional sealed bids, this method allows competitors to view all bids posted in real time until the bid closes.

Reverse Auctions are relatively new for state agencies. The Texas Department of Transportation and the Texas Department of Criminal Justice have been the primary users to date. Some cities and universities are also using Reverse Auctions. Apart from the complexity of the process, Reverse Auctions do not lend themselves to small procurements; therefore, the state's purchasing agency, the Texas Building and Procurement Commission (TBPC) has set $60,000 as a lower limit for using this method. TBPC is currently working with various agencies and vendors to improve this entire process.

Cooperative Purchasing Programs- Cooperative Purchasing Programs allow local governments and numerous quasi-governmental organizations the ability to purchase goods and services off of state contracts. Purchasing in this manner allows vendors to bid once, and if successful, agencies buying off of these contracts are exempt from future bidding. Purchasing may be done simply by ordering the product or service at the price already quoted and listed in the cooperative purchasing program directory. This purchasing method can save buyers a lot of time and resources. Vendors benefit greatly because this method can lead to contracts for years to come.

Texas Multiple Award Schedule (TXMAS) Program- Another procurement vehicle is known as "TXMAS." This program, administered by the TBPC, provides a schedule of multiple award contracts that have been previously awarded through a competitive process by the federal government or any governmental entity in any state. The program allows state agencies and local governments to make purchases from contracts that have already been competitively awarded.

Some examples of current TXMAS schedules include the areas of Hardware, Imaging and Document Solution, Office Furniture, Shipping and Packaging, Security Solutions, Telecommunications, and Industrial Services and Supplies.

GO DIRect- This contracting vehicle allows agencies, local governments, public schools, and universities to buy hardware, software, or other IT products and services from the Department of Information Resource's (DIR) Web site. Purchasers may buy items directly from any vendor with whom DIR has a contract. This streamlines the entire order process and allows customers to receive their orders quickly. The GO DIRect program meets all the requirements of State of Texas term contracts, allows DIR customers to take advantage of the purchasing power of the State of Texas, and enables procurement card and/or credit card purchases.

Term Contracts- Term contracts are established by the State so that goods and/or services can be made available to state agencies at discounted prices. Agencies are required to utilize the term contracts unless there is justification not to do so.

Contracts are based on the estimated quantities determined by TBPC and may be ordered as needed.No bidding is required if a term contract is utilized, regardless of dollar amount.

Vendors who would like to participate in these programs can register for the CMBL online at https://cmblreg.tbpc.state.tx.us/ or by submitting a hard copy application to TBPC. Vendors may call 512-463-3459 for assistance during the registration process.

4th Annual Purchasing and HUB Connection Forum

Sponsored by: Teacher Retirement System and Texas Workforce Commission Location at 1000 Red River St., Austin, February 11, 2004, 1:00 p.m. - 4:00 p.m. For more information and registration contact: Debbie Pina, TRS HUB Coordinator (512) 542-6569 or e-mail at: Debbie.pina@trs.state.tx.us, or Len Eddie, TWC, HUB Program Specialist (512) 463-2411 or e-mail at:len.eddie@twc.state.tx.us.

Data Interchange XML Theory and Practice

Sponsored by the DIR at the Employee Retirement System Auditorium, Brazos and 18th, Austin, on January 18, 8:30am-12:00pm. A free educational presentation hosted by DIR intended for Texas agency and university IRMs, CIO's, Senior Level Business and Technology Leaders, members of the ACE working groups, the PESO group, and other staff involved with information technology issues. Attendees from other areas of government may attend on a space available basis. For more information contact DIR at (512) 475-4700 or send an e-mail irm.education@dir.state.tx.us.

GTC Southwest 2004: Fifteenth Annual Government Technology Conference

Sponsored by GTC, at the Austin Convention Center, Austin, on January 26-30. GTC aims to help State and Local government keep current on technology trents and improve professional skills. For more information or to register, visit http://www.govtech.net/gtc/?pg=conference&confid=135 .

New Texas Fact Book 2004

The Legislative Budget Board has jsut realeased the 2004 Fact Book. For more information, visit http://www.lbb.state.tx.us/Fact_Book/Texas_Fact_Book_2004_1103.pdf.

Governor Rick Perry Names Bill Noble as Senior Advisor

Gov. Rick Perry announced last week that Bill Noble, a long time public affairs executive from San Antonio, is joining his staff as a senior adviser.

Most recently, Noble led the Texas public affairs media team for Fleishman-Hillard's SBC Communications account, where he provided strategic advice and implemented communication initiatives for SBC executives.

Noble previously worked as a public and government relations manager for AAA Texas, one of the state's largest associations, and in public affairs and media relations for USAA, a large San Antonio-based financial services firm. He also operated his own public affairs practice in Southern California in the early 1990s.

Born and raised in Hollywood, Calif., Noble earned a bachelor's degree in business administration/finance from San Diego State University and a master's degree in business administration from the University of Texas at San Antonio.

Burciaga, Watson to Lead Greater Austin Chamber

The Greater Austin Chamber Board of Directors today unanimously elected Rick Burciaga, Regional President of Wells Fargo Bank, as 2004 Chamber Chairman, and Kirk Watson, founding partner of Watson Bishop London Brophy P.C., as Chairman-elect.

Outgoing Chamber Chairman Charles Barnett, President and CEO of Seton Healthcare Network will pass the reigns to Burciaga after the December board meeting.

As chair of the Membership Challenge campaigns, Burciaga is largely responsible for increasing the Chamber's membership by more than 500 members during 2003. Burciaga has also been very active in the Opportunity Austin economic development initiative.

Watson, who as Austin Mayor from 1997 to 2001 presided over Austin's biggest economic boom, has spent much of the past year speaking throughout North America about economic development, urban planning and regionalism, using Austin as a practical model of how cities can create economic health while maintaining their special character. Watson also serves on the board of the Greater Austin Economic Development Corporation, which oversees Opportunity Austin.

Burciaga has been in the banking industry for 30 years, the last 16 years with Wells Fargo and its predecessor institutions here in Austin, including Norwest Banks and Franklin Federal Bancorp. He is currently involved in the community on the boards of the United Way and Junior Achievement and the Advisory Board for the Austin Lyric Opera. Previously, Burciaga has been active on the boards of Capital IDEA, the Austin Symphony, Caritas, the Salvation Army, the Paramount Theater, Live Oak Theater and the Settlement Home. He is a graduate of University of California, Los Angeles.

Watson received the Chamber's Austinite of the Year Award in 2001 for his economic development efforts and vision. Governing Magazine recognized Austin as one of the top two cities in America for the way it was governed while Watson was mayor.

Homeland Security Ends Post-9/11 Federal Registration System

Monday marked the end of the National Security Entry/Exit Registration System, a program established in the immediate aftermath of the September 11, 2001 attacks that required temporary visitors from the Middle East and other predominantly Muslim nations to report to immigration offices thirty days after arriving in the U.S. The program will be replaced by US-VISIT, an automated border watch system.

Asa Hutchinson, the undersecretary of border and transportation security, related that the new system focuses more on individuals than "broad categories" of people. The NSEERS program garnered much criticism from civil rights groups and a number of groups representing the American-Islamic and American-Arab communities for its indiscriminate treatment of Muslim and Arab visitors and prosecution of many persons who voluntarily registered.

The US-VISIT program is scheduled to begin on January 5. This program has itself been a source of controversy in Texas, due to the inequities in its treatment of Mexican versus Canadian visitors.

Biometric Technology Mandate Proving Troublesome for New Homeland Security Program

The Department of Homeland Security intends to kick off 2004 with the implementation of the US-VISIT program, the successor to the aforementioned NSEERS program. In its first phase, the new program will focus on travel through airports, tracking the arrival and departure of all foreign visitors utilizing air transportation. Eventually the program will encompass more traditional forms of transportation, trains and automobiles. Its implementation may prove more difficult though, due to the sheer quantities of people crossing the United States' northern and southern borders.

As of January, visa-holders traveling through one of 140 airports or 14 seaports will have two fingerprints and their photo scanned upon entry into the United States. The checkout process is still undecided at this point. The US-VISIT program also requires that the 50 busiest land crossings will have automated entry-exit systems by the end of 2004, and ports to have the same technology capability by the end of 2005. While digital photographs and fingerprints are being used in airports, the exact details have not yet been decided for land crossings and ports. Biometrics can include everything from iris scans to digital fingerprints.

The main concern for many border security officials is the huge bottlenecks that such scanning could create. Because border crossings account for 80% of the 500 million entry inspections a year, border authorities in many states are pondering how best to accomplish the mandates of US-VISIT at the local level without completely paralyzing traffic moving in and out of their states.

At the national level, DHS will officially request bids for the border-technology contract on December 5. One of the largest government technology contracts ever, the project is estimated to cost around $7 billion dollars through 2014.