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Q&A
Impact of discretionary contracts on retroactive registrations
2:53:19
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108 sec
Michael Sedillo from the Mayor's Office of Nonprofit Services explains that a significant portion of retroactive contracts are discretionary contracts. He emphasizes the need for partnership between the administration and the council to address this issue.
- Two-thirds or more of retroactive contracts are identified as discretionary contracts
- Sedillo proposes implementing a grant-like process to eliminate the registration process for discretionary contracts
- Council Member Won challenges the notion that small discretionary contracts are the main cause of payment issues for nonprofits
Michael Sedillo
2:53:19
Well, I'll jump in, Chairwon.
2:53:21
You know, it's not us, and I'm sorry to be a broken record on this, but because I think there's a real shared opportunity for partnership with the administration and the council on this.
2:53:30
I just wanna say again, two thirds at least, and it could be more in some agencies and particularly with DYCD, of those contracts that are retroactive are discretionary contracts.
2:53:40
And I don't say that defeatist, right, because tomorrow morning literally 08:30 we're meeting with your staff to go through grant like process which would eliminate a registration process.
2:53:50
Right?
2:53:50
Again, out years in the multi year vehicle, years two and three, we don't have a registration process.
2:53:55
We would do that for a significant portion of discretionary contracts.
2:53:59
And so I do think that if we partner with that, that is the right thing to do and it will significantly reduce the workflow for agencies and the amount of time that it takes for us to be able to just pay nonprofit providers and ensure that they are getting the services that you all understand are needed in your district done in a timely manner.
2:54:34
Thanks for the rephrase.
2:54:35
I think where there's contract backlog issue, more often than not, it is a discretionary contract.
2:54:43
I'm not saying that we're proud of that.
2:54:45
The cycle time on that is very high and it can be lower certainly.
2:54:50
But if the underlying issue is a retroactive contract, more often than not it's a discretionary contract.
Julie Won
2:54:21
So for discretionary contracts, you still believe that nonprofits who are crying about like millions of dollars and not getting paid are crying over the council's discretionary of 5 to $10,000?
2:54:58
So let's continue to unpack that.
2:55:00
So what exactly is causing the issues of discretionary contracts being retroactively registered?