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>> mayor jones: good morning, good morning. The time is now 9:15 a.m. On

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june 18th, 2026, and the meeting of the san antonio city council is now called

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to order. Madam clerk, please call roll.

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madam clerk. Today's invocateur is the guest of councilman

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mckee-rodriguez. Over to you, sir. >> mckee-rodriguez: thank

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you, good morning everyone and happy pride. Today is a beautiful and very busy day. Thank you, mayor, for your patience in starting the

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meeting. We were running a little bit late today. To quote the princess diaries, a queen is never late, everyone else is

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simply early. In the spirit of pride month it is a pleasure to

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introduce aja. She has a strong sense of community and dedication.

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her participation in the drag community started in 2021. Her inaugural performance was a benefit benefit for the aides foundation, an

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experience not only to start her career, but also the passion for using

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performance as a positive impact. Professionally she balances a multi-facetted career. By day she's a business manager and in the evening

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she transitioned to the role of a host and entertainer, gracing stages across san antonio. These engagements allow her to connect with diverse

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audiences and contribute to the family member fabric of ourl community.

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her current focus is for strength in the community. Please join me in welcoming

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aja. [applause] >> good morning.

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thank you guys for having me. This is such an honor.

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I will greet you guys. Greeting mayor, city council and my councilman, jalen

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mckee rodriguez. It is an honor to be here twice this time.

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I wish you guys a happy pride today and everyday. If you guys can bow your

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head with me, I'm going to say a prayer for us. From this point of the light

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within the mod god, let light stream forth into the minds of every person, every

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being. Let light descend on earth earth -- sorry.

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from this point above within the heart of god. Let love stream and forth

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into the hearts of every person, every being. Let love descend on earth.

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from the center where the will of god is known, let purpose guide the will of

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every person, every being, every purpose which the holy master known and survived.

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let goodwill and the will to be good descend on earth from the center which we

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call from human race. Let the plan of love and the light work out.

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and many seals of the door of evil dwells. Let light of love and power

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descend upon earth, manifest and restore divine plan of earth as attacks come from

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all angles. Please pray for our lbgtq+ folks, particularly our

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trans community, which we face ongoing hate and discrimination and attempt

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to assure. Never let your own discriminations or

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disagreements or personal conflicts stop you from aligning where it matters

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most. We also would like to extend our prayer to our lbgtq

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youth. Sorry. Our lbgtq youth who are

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fighting to find themselves in a place that is unsure, unsafe, in a time we are

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already challenging and we pray that they be granted a knowledge where they can

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find love, peace and serenity. Thank you.

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>> mayor jones: thank you, aja. Please remain standing and join me in the pledge of allegiance.

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>> mayor jones: item 3 is approval of the minutes for the june 3rd and 4th, 2026

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council meetings. Are there any corrections or edits to the minutes? Hearing none, is there a motion for approval? >> I make a motion to

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approve. >> mayor jones: there's a motion to approve and a second. Please vote. The motion carries, thank

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you. We have one proclamation today, a very important one.

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juneteenth. I will now read the proclamation and then recognize councilman mckee-rodriguez to speak. Whereas the city of san

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antonio recognizes that juneteenth day honors the historic moment when freedom was finally realized for the last enslaved african-americans in the

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united states, reaffirming the enduring ideals of human equality and dignity.

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whereas on june 19th, 1865 marks the date when union forces arrived in galveston,

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texas, and enforcing the emancipation proclamation more than two years after

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its issuance. Whereas juneteenth stands as the oldest commemorateing day

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of remembrance for slavery in the united states and also stands for the ongoing

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pursuit of civil rights. It provides the san antonio community an opportunity to

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honor african-american history, culture and contributions and to recommit to fostering equality, understanding and unity for all residents.

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and whereas the juneteenth independence day parade organized by the san antonio

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juneteenth freedom coalition will take place on june 20th, 2026, followed by

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a festival in comanche park number 2, celebrating through programs, community

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gatherings and activities that highlight heritage and fellowship.

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now there are I, mayor of the city of san antonio, in recognition thereof, do

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hereby proclaim june 19th, 2026, as juneteenth day in san antonio, texas.

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councilman mckee-rodriguez. >> mckee-rodriguez: as we reflect on juneteenth this year, we remember it not as a historic milestone, but call to action.

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it is the day federal troops arrived in galveston, texas, two and a half years after

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the emancipation proclamation to enforce the end of slavery. Two and a half years. And the system of slavery didn't die easily and its

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legacy didn't disappear with a stroke of a pen. And if you ask today, some will tell you some systems of bondage never ended, they just evolved.

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that's the uncomfortable truth that we're called to confront.

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did slavery really end on juneteenth or simply shift into something else.

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what oppressions exist in our society today? What institutions were born

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under slavery and segregation, but now have continued under different

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names. How is it limiting the success of our black communities? Even now we're seeing ice and various levels of law

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enforcement rip families apart and such a violent and I am humane practice started

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in slavery. What is done to one of us is done to all of us.

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in san antonio we've made meaningful progress, we've passed a non-discrimination

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ordinance, we've named [indiscernible], we've introduced equitable

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framework to assist frameworks, contracts and services and these are important steps, but they're just that. Enduring centuries of racism

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takes more than statement, it takes courageous and often uncomfortable action. We can't ignore the data, black americans are incarcerated at more than

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three times the rate of white americans and that's not accidental.

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metzger evers, malcolm x, fred hampton all murdered, all for demanding dignity

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and justice for black lives. It didn't stop there. It continues with theth of

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trayvon martin, sandra bland, marques jones, chaired round tree, george

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floyd, and countless others whose name and know and so many that we don't. So when I and others challenge law enforcement practices or question

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long-standing norms and it makes you uncomfortable, I ask you to pause and consider the history of our lived experiences. We're not asking you to

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debate our reality, we're asking you as allies, as leaders, as neighbors to help us change it. And it's not supposed to be easy because real change

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never it, but it's necessary to save lives and create a better future.

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for over 400 years this country and state have worked to undermine the

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black community and still do in many ways. Juneteenth celebrates the end of slavery, yes, but it also marks the beginning of a new kind of fight to end

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its legacy. So I invite you this year and every year to stand with us to speak out and to act. I look forward to celebrating with my

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community this weekend at the parade on saturday at 9:00 a.m. Starting at sam houston high school and the many events happening over the week.

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I'll see you in the streets surrounded by a powerful, resilient and deeply rooted

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community that continues to lead the way. Thank you, mayor. >> mayor jones: thank you, councilman. Would anyone else like to

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speak? Anyone else on the dais? You're welcome to come to

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the podium, sure. Please go ahead. >> good morning.

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my name is oscar vehicles. We've been doing a juneteenth parade for the

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last 27 years and we want to thank you all for recognizing and letting the

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city know that we'll celebrate liberty, equality and justice for all.

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and I'm not about juneteenth because it's a holiday, I'm about juneteenth because

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liberty, equality and justice for all, not just black folks, but everybody.

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when I came back from vietnam, I went around the world to fight for people's

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freedom and I come back and we had a colored restroom, a colored water fountain and

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colored restaurants. And I said from that day on, I would be fighting for

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liberty, equality and justice for all. So anybody that recognize

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that, I want to appreciate them. This is freedom.

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the city is responsible for doing the presentation. I like to give credit for everybody that support us, and we hope that we'll see everybody's parade wave on

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saturday at 9:00. Thank you. >> mayor jones: thank you,

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sir. [applause] >> oscar vehicles last week

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buried his wife and he took the time out to come out to show you how important it is for

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us to come together and have a good time and celebrate our freedom.

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>> mayor jones: thank you. >> mayor jones: let me foot stomp, encourage

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everybody to be there at 9:00. I look forward to it. I hope as many of my colleagues can join me that morning as possible.

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we've got a busy agenda here. Erik, I'll turn it over to

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you for the city manager's report. >> good morning, mayor and

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council. Two items. One, I wanted to have an opportunity to bring a very special city employee before the council this morning,

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ms. Ana martinez is celebrating an extraordinary milestone of 50 years with

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the city. That deserves a round of applause right there.

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[applause] so ms. Martinez currently serves as a deputy court

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clerk in municipal court and is known for her professionalism, extensive

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court knowledge and commitment to excellence at the courts. She's a certified court clerk through the texas court clerk's association.

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she began her career in 1976 with the city, in the city welfare department, which

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probably over time turned into the department of human services.

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as a grant funded clerk transcribing case manager reports and then joined the

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municipal court team in 1985. During her career has served

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in a variety of roles as she's moved up in the organization.

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proud san antonio native, mother to a daughter and grandmother to three

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grandchildren. And she reportedly finds great fulfillment in

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supporting the judges and the public as they navigate the court system.

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it isn't very often that we have a 50-year city employee. Ana, thank you for join willing us this morning. I wanted to recognize you

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and your service and your service to our community and the organization. And thank you before the council this morning. Thank you very much.

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[applause] >> mayor jones: ms. Martinez, if you would

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indulge the council, we would like to come down and take a picture with you.

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[applause] >> and then the second item is another great news story.

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today's video highlights an employee who is here today, robert ybarra, from the

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solid waste department, who was recently awarded the national waste and driving

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association driver of the year for the entire country. [applause] so the national

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waste and recycling association recognizes one public sector driver every

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year, and robert is this year's awardee. He started working for the

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city in december of 1994 and promoted into a driving position in 2003.

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in his 30-plus years with the city he is accident free. [applause] the award celebrates the best of his industry, professionals with

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the skill, the discipline and the commitment to set a safety standard for waste and recycling operations, so I wanted to thank robert and congratulate him and have an

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opportunity for him to come before the council this afternoon. That is today's video, so let's roll the video. >> this award from the nwra,

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the national waste and recycling association, this award will be presented to

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me in washington, d.c., so we will be going over there to accept the award.

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I have been employed with the city of san antonio for 31 and a half years. Right now I'm a side loader equipment operator. I collect the carts on route

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servicing garbage, recycle or gongs as needed. I -- organics as needed.

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I also have a role in training new drivers. The core values that I think we use a lot here is teamwork. We are always out there, but

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sometimes we do have delays, so we need other drivers to come and help.

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we're all trying to get back here safely. The other one for me

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personally is integrity, because we are there by ourselves in the truck, it's

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just us. We have to make decisions out in the field and it's just having pride in your work. Even though no one is there

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to see it we still have to do the right thing. It's really an unbelievable

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feeling, me and my wife going to dc to receive my award.

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I never thought this job would take me places like that, but to be honored that way it's exciting for me and my family. It's not just for me, it's

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for the city, it's for the department. My name is robert ybarra,

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I'm a side load equipment operator and I was selected as the 2026nwra public

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sector driver of the year. [applause] >> congratulations again,

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robert. That's all we have this morning, mayor. >> mayor jones: congratulations, sir. Thank you, erik.

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there are no individual items scheduled for today. Items 10 through 29 are on

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the consent agenda. This means they will be considered as a group and there will not be a staff presentation unless pulled for individual

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consideration. Because item 26 is related to items 5, 6 and 7, I

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recommend moving this item from the consent agenda to be voted on with the other

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toyota-related items. Is there any objection to that? Great. Thank you. Are there any other items

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council members would like to pull from the consent agenda to be heard individually? Hearing none. Okay.

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all right. Item 26 has been pulled for individual consideration.

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and we are on -- we have no members of the public who have signed up to speak on

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the items that remain on the consent agenda. There's is motion to approve the balance of the consent agenda? >> second.

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>> mayor jones: there's a motion and a second to approve the balance of the

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consent agenda. Any highlights, questions about the consent agenda? Councilwoman viagran? >> viagran: thank you. This morning I would like to

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highlight item less than, an ordinance approving a construction contract for

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the father ahmand center. It is going to be approximately 1200 square

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feet replacing the recently demolished community center which had been up for years

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and been a gathering place. This modern iteration of the father amman community

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center is going to include a lobby, a gym, two classrooms, community

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programs and a dedicated office space for parks and rec. So I look forward to moving that forward. I would also like to

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highlight item 12, fire station 21 replacement. This was part of the fiscal

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year 2024 budget, a total of 12 million was authorized for the design.

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this is fire station 2021, replacing a very old fire station on south flores.

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I look forward to that. Seeing our firefighters housed in a new facility,

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state-of-the-art. I'm very excited about that. So I look forward to moving that forward. Thank you, mayor. >> mayor jones: are there

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any other items for highlight? Councilwoman kaur. >> kaur: thank you, mayor. I have two highlights today. One is item 10, which is a

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contract for the kenwood community center authorizing eight and a half million

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dollars to do the entire construction of this community center. This was one of the first things that my seniors asked me when I was elected three

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years ago, that this building was closed due to foundational issues and they really wanted this building opened again so folks can father.

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so I want to shout out dhs for their hard work and helping us create a

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community design team that actually provided input into what the public art in the building was going to look like, where the bathrooms were going to be located,

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and dhs did an amazing job. And thank you to the capital delivery department who has

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assured me that there is a bonus for early completion in this project in the

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budget. I'm excited to hear that as well. The next item I want to highlight is item number 28, which is a methodist

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healthcare right-of-way agreement. I want to thank the city attorney's office to their diligent work in getting this done so it does not

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delay the construction for methodist healthcare. I know juan is here today and he's been a great partner for the district 1 team, as your organization

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has for the entire community, they just opened up a doulah center.

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if anyone needs those services they can access them pretty easily. Thank you for your partnership as well. Thanks, mayor.

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>> mayor jones: thank you. Erik, one clarification on item 22, which is the

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downtown disability and mobility study contract. Yesterday we had a

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discussion from my of my colleagues and we want to make sure there's sufficient

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citizen input into what that group, one, looks like, as well as the kind of longer,

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more strategic guidelines, objectives, goals that are considered as part of that. So understand that's a one-year contract, but we want to clarify that that is

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going to be flexible enough to account for the feedback that we described yesterday. >> yes, ma'am. I think what you talked about was having councilman

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mungia kind of lead the charge on getting that for the council members. >> mayor jones: I wanted to confirm that for the public.

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thank you. Okay. There being no further

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discussion, there's a motion and a second to approve the -- excuse me.

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okay. Councilman mckee-rodriguez. >> mckee-rodriguez: thank you, mayor. I wanted to item number 29, appointing and reappointing

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our municipal court judges. I want to give my gratitude for those who applied and

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those ultimately chosen. We were so impressed by those we got to interview and we got to hear about your passion for service of our community.

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and municipal court is often one of the first interactions that our constituents have with local government and so I wanted to once again say thank you

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for upholding the courts in the way that you have, and I look forward to working with

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you as chair of the municipal courts advisory committee. Thank you, mayor. >> mayor jones: thank you, councilman.

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any other questions or highlights? Okay. There being no further discussion, there's a motion and a second to approve the

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consent agenda minus item 26. Please vote.

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the motion carries, thank you. Items 5, 6, 7 and 26 are all

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related to toyota and if there's no objection will be discussed and voted on

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together. Hearing no objection, madam clerk, please read the

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caption for items 5, 6, 7 and 26. >> item number 5 is an

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ordinance approving a 10-year tax abatement agreement with toyota motor

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manufacturing, texas, inc., to abate 100% of real property, personal add ad

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valorem property taxes for improvements within an existing texas enterprise zone. B, a chapter 380 economic development agreement for

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$9,500,000 for ready to work program funding and city fee waivers. C, an endorsement to participate in cps energy's e-16 rider program.

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d, recommendation of saws fee waivers in an amount not to pedestrian $4,515,950,

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subject to saws board approval. E, negotiation and execution of an advanced funding agreement between the city of san antonio, bexar county

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and the texas department of transportation with a city contribution in the amount

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of $20 million to support road infrastructure improvements.

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and f, allocation of $4,500,000 for intersection improvements and

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appropriates funds accordingly.

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item number 6 is a resolution approving the negotiation and execution of

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an advanced funding agreement between the city of san antonio, bexar

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county, texas and the texas department of transportation, txdot, for

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the development of the proposed east-west state spur project with a city contribution of $20 million. Item number 7 is a resolution nominating toyota

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motor manufacturing texas, inc., for a designations a qualified business and a

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triple jumbo enterprise project under the texas enterprise zone program.

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and item number 26 is an ordinance authorizing and approving publication and

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posting of a notice of intention to issue city of san antonio, texas

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combination tax and revenue certificates of obligation in a maximum principal

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amount not to exceed $25 million, and providing for an effective date.

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>> mayor jones: thank you, madam clerk. Staff has a presentation. Thanks, alex. >> good morning, mayor and council.

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I'm excited to present for your consideration an incentive package

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intentionally designed to position san antonio for a transformative economic development project. I'll start with some background on the company.

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toyota has already invested over $4.7 billion at the company's southside location

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since 2003. They directly employ over 3700 people and their local

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supplier network includes approximately 5400 additional employees.

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in 2022 we commissioned a study of the economic impact associated with toyota and

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its suppliers investment in san antonio, and found that through 2035 they will

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contribute $208 billion in gdp and support 15,000 jobs and $1.34 billion in annual

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wages. So for some perspective, this represents seven percent of bexar county's gdp and 2.5% of the total wages in our county.

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the project under consideration would include construction of a

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2.5 million square foot facility to accommodate a new flexible production line

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manufacturing over 200,000 vehicles annually. They're planning to start

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construction by september of this year and be operational by 2030.

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this expansion is planned at their current location and this image shows the land

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they have available. And while we've known an expansion of this caliber

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was a possibly, we've also known we'd have to compete for it.

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in connection with this project, toyota plans to invest $2 billion and create

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2,000 jobs. As part of this incentive package, we would require

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that the 2,000 jobs created would meet or exceed the bexar county average wage,

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which is currently $32.36, and which will be indexed annually.

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staff is recommending our wage expectations align with the texas enterprise fund, which for this project is also being recommended. The texas enterprise fund,

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it's a state program and it consists of -- and it includes total cash

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compensation rather than simply just base wages. In the advanced

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manufacturing industry and specifically with a company like toyota, shift

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differentials, overtime and bonuses are significant, which is why this standard

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more accurately reflect the wages associated with these jobs.

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our policy also requires that 10% of a baited texas be invested into wraparound

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support for their employees in the form of childcare, transportation or workforce

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development, which they have committed to doing should we be selected for this

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investment. This incentive package

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specifically developed to increase san antonio's competitiveness for this

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investment. We're recommending a 10 year 100% tax abatement with an

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estimated value of $88 million. Along with $20 million for

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road improvement investments to connect the site to highway 281 via a northeast

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entrance. This entrance is critical to mitigate the impact of

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additional vehicle traffic associated with this project. Item number 6 on today's agenda authorizes an advanced funding with txdot

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for delivery of this road improvement. And item 26 on the agenda

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would authorize debt to fund the improvement. This debt will be backed by

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anticipated growth in cps revenues associated with an increased energy load for

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this project. And while txdot has committed to an aggressive

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timeline for delivery of this road, they cannot guarantee its completion prior to the plant being operational. So to improve more efficient

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access to the site in advance of the eastern entrance being available, we

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recommend additional infrastructure support for specific road improvements along the western entrance to the plant. These improvements will be

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funded through the economic development incentive fund, along with savings from

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infrastructure improvements associated with project iceberg, which resulted in

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the rear axle manufacturing facility. We're recommending ready to

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work support in the form of on-the-job training grants up to 8.25 million

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dillard's, and incumbent worker grants up to $750,000.

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to access each 5,000-dollar on-the-job training grant, toyota would be required to

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hire from the ready to work program. And we're also recommending

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$500,000 in city fee waivers, also to be funded from the economic development incentive fund. Aside from city-funded support, we're also

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recommending an e-16 rider incentive, which is an economic development tool council can make available to significant power uses. The estimated value of this

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discount is $16.2 million over six years. Cps will also be offering

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support in the form of additional infrastructure for the project and a

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natural gas discount. And saws will also be savoring infrastructure

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support and wave waive impact fees as noted on this slide. Item number 7 on today's

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agenda seeks approval of a resolution nominating this project to the texas enterprise zone program, making them eligible for up to $3.75 million in state

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sales tax rebates. And lastly, due to the speed of the project, we're also

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recommending a single point of contact with development services.

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I'd like to take a few minutes to highlight some of the details on the impact this project could have in our community. The city's total incentive

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value is estimated at $122.1 million. However, we've estimated

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city tax revenues of 34.7 million during the three years of construction.

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during which time they will still be paying property taxes, along with sales taxes for all of the construction. If you look 10 years after

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the abatement expires, we anticipate $92.4 million in property taxes and sales

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taxes to the city. So over the next 25 years, these revenues actually

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exceed our incentive costs. And as far as direct impact to residents, if we take the

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2,000 jobs created, multiplied by the annual average wage, which is

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roughly $85,000, this project is anticipated to result in $178.8 million in

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wages into our community every year. And finally, the estimated

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economic impact for this project during the initial three years of construction

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is $3.2 billion. And 7.6 billion annually once it's operational.

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so mayor and council, given the proven commitment toyota has demonstrated to the

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san antonio community and to position san antonio to aggressively compete for

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this transformational investment opportunity, staff recommends approval and authorization of the various items included in this incentive package.

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and while this concludes my presentation, I'd like to invite frank voss, president

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of toyota texas, to share a few remarks. >> thank you, alex and good

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morning, mayor jones, city councilmembers and city staff as well as the

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community members here today. It an honor to be here on behalf of the 3700 workers of at a toyota texas, as well as some suppliers, to help

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support the expansion right here in this community. For over 20 years toyota has

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been building something great in san antonio, not only high quality vehicles, but also careers and livelihoods for thousands of san antonians.

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while our plant is proudly located on the southside and has been an important catalyst for the significant growth and development happening on that side of

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town, our team members and our suppliers' team members, the hard working people say

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assembling, toyotas, tundras and sequoias everyday, they live in every council

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district in this great city. So we hope that between our people and the high quality

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trucks and suvs on the roads throughout this region and the philanthropic impact

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we've made over the past two academic aids, especially in stem and education, you feel

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that toyota is for everyone because it is. We extend our deep gratitude

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to city manager walsh and the assistant city manager team, the economic

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development department and many others for preparing a package that we hope will be

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competitive and help san antonio win this project. And we thank each of you for your consideration of it. In return, we're excited for

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the potential impact that 2,000 more high quality, stable jobs with toyota

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paychecks will make in the lives of this community's citizens and our local economy for years to come. We're thankful for all the city's support in every step

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over the last 23 years and we hope that if san antonio is selected it will be

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another once in a generation investment that this entire city can be proud of and

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benefit from. Thank you for your partnership and for your support. >> mayor, one other thing I'll add before we move to

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questions. I wanted to recognize and thank the entire city team

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that worked on this project, and you've heard some of the names, but it's

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far-reaching. As you all sit there as council members and mayor,

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we also are the owners of the utilities. I know mr. Puente and his

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team are in the room, but saws and cps spent a significant amount of time

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on this issue as well as well as our own mike ramsey, mike shannon of the capital

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delivery departments, art reinhart in public works, john peterek, ben, troy and

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margaret in the finance team. Ray rodriguez and laura reyna in the city attorney's office, and of course alfred and brenda in the economic

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development department. And really working as a team with our utilities, utility

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partners and greater satx, we were able to come to a point where we were able to bring this to you today for recommendation, and hopefully good news in the

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future. Thanks, mayor. >> mayor jones: thank you.

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we have two individuals from the public who have signed up to speak on this item. I'll call them in the order that we have signed up. Jonathan gerwitz, followed

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by jack finger. >> mayor and council, as chair of the public policy

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committee in the greater san antonio chamber I'm here to show support for the tax

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agreement with toyota manufacturing texas and to thank toyota for its

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long-standing commitment to our community. For more than two decades toyota has been much more than an employer in san antonio.

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the company has been a true community partner investing not only in manufacturing,

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operations, but also in the people, organizations and institutions that help our

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region thrive. Toyota's presence has helped establish san antonio as a

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globally competitive manufacturing hub, supporting houses of direct and indirect jobs and attracting suppliers, investment and talent to our

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region. Their economic impact extends well beyond this

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facility, benefiting small businesses, families and schools throughout our region. Just as important, toyota has consistently

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demonstrated a commitment to corporate sit 10 ship with volunteerism, charitable

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giving, workforce development partnerships and support for educational

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initiatives. Today's actions support toyota's continued investment in san antonio while helping ensure our community remains

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competitive to future growth. Communities across the country are competing aggressively for advanced manufacturing investments in

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tools such as tax abatements, help position san antonio as a place where

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world class employers choose to expand, innovate and create jobs. As we continue to diversify and strengthen our local economy, retaining and

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growing employers like toyota is one of the most effective strategies for creating opportunities, for economic prosperity and securing a strong future for

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generations to come. On behalf of the greater san antonio chamber and our

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volunteer leadership, I want to thank toyota for its enduring partnership and ask

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city council to support this agreement. We appreciate toyota's partnership in san antonio and look forward to continuing growing together

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for many years to come. Thank you. >> mayor jones: jack finger. >> madame mayor, other members of the san antonio

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city council. For the record, my name is jack m. Finger and just for

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the record, I did sit out that invocation this morning.

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toyota. How many years has it been for san antonio?

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well, at least 20. 20 years. Has a big multibillion

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dollar plant on the south side. To say that is going to up and leave san antonio is, to me, a little bit farfetched. If I was born at night, it

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certainly wasn't last night. But we're about to find out how many of you were born last night. You know, we -- in this big deal we have here, that's

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what the headline says. We're going to give away how many perks?

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city offers toyota $142.7 million in perks. But for what?

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mr. Audio-visual man. How many actual jobs is going to be new on this one? We talked about the thousands of jobs. Add more than 400 jobs.

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400 jobs. I think that's the bottom line. Return the camera, if you would. Now, I calculated -- here,

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you can put that up there now. Maybe I'm just an amateur at

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this, but I counted 400 jobs and that's $220,000 per job. $220,000 per job.

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that, on top of the 30-some odd dollars each job is already providing.

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is $220,000, does that seem like a little bit much to you? It does to me. So anyway, return the camera, if you would.

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we are already going to give them all kinds of giveaways and road improvements and

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on-the-job training. And waivers, fee waivers, utility fee waivers and so

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forth. But I notice that we're going to give them a

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10-year, 100% tax abatement? How many of our average mom and pop businesses here in

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town can get a commensurate type of tax abatement like that?

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do we ever give such? No. Here's one. That bottom second one there. Second circulated area

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there. Yeah. If you can blow it up a little bit. Incumbent worker training amount in the amount of

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$750,000 in order to upskill existing employees . Why don't they train their

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own employees on their own dime? We're already training them

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with the on-the-job training. Why are we giving them extra

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training? Why don't they do it themselves? Thank you. >> mayor jones: thank you for the public comment.

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we always appreciate that. Because that one was incorrect, however, I do want to make sure that the public, that is paying a lot of attention to this,

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understands the news article that he referenced, referenced a rear axle

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plant. That is an issue settled and we look forward to those 400

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new jobs coming. That does not have anything to do with what we are discussing today. But thank you for the public comment.

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those are all the individuals that have signed up to speak on item 5. May I have a motion to approve items 5, 6, 7, and 26 so we may begin

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discussion? >> viagran: I make a motion to approve.

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>> mayor jones: we'll now move on to council discussion. For clarity, because the numbers may be different for those that are paying

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00:47:35,366 --> 00:47:38,666
attention. The reason we're talking about item 26, you saw in there a reference to a $20 million incentive. Item 26 speaks to a

393
00:47:45,600 --> 00:47:48,700
$25 million bond that we would have to pay and that accounts for additional costs and interests, potentially, with having to pay that off.

394
00:47:52,033 --> 00:47:52,033
those two are related but in case anyone was wondering why those numbers were

395
00:47:56,200 --> 00:47:59,900
different. >> walsh: mayor, that's only if needed. >> mayor jones: that's right. As needed. But they're related. Okay. Thank you.

396
00:48:12,600 --> 00:48:15,233
councilmember mungia. >> mungia: thank you, mayor. I want to thank alex and belinda and also greater:satx, y'all have

397
00:48:22,400 --> 00:48:22,400
done an amazing job putting together a wonderful package that I think is so

398
00:48:27,166 --> 00:48:31,033
beneficial not just for my district and the south side of san antonio, but regionally speaking. This is a huge investment for our community.

399
00:48:33,400 --> 00:48:36,800
we have had a great longstanding relationship with toyota ever since you guys came here and I think it's paid -- the dividends are immeasurable.

400
00:48:42,033 --> 00:48:45,500
thank you for all the work you have done. These are fantastic jobs. These are folks that my parents grew up with that worked there and are able to

401
00:48:53,500 --> 00:48:53,500
sustain a family and a great sense of living. This has been a lot of

402
00:48:58,833 --> 00:48:58,833
partners getting together, including saws and cps pitching in.

403
00:49:04,366 --> 00:49:04,366
ultimately, this is best, not just for the south side but for the entire region of

404
00:49:09,466 --> 00:49:13,466
san antonio, bexar county, even south of us. A lot of folks who live outside the county benefit from these jobs as well. Thank you for all your work.

405
00:49:16,866 --> 00:49:16,866
thank you to the city and I look forward to passing this and hopefully getting these

406
00:49:21,833 --> 00:49:21,833
jobs and hope y'all will give me a tour once it's been built.

407
00:49:27,033 --> 00:49:27,033
thank you very much. Appreciate it. >> mayor jones:

408
00:49:36,033 --> 00:49:37,700
councilmember alderete gavito. >> gavito: thank you, alex for the presentation. Brenda, thank you for your help in getting it to the

409
00:49:42,500 --> 00:49:42,500
finish line. Obviously sarah with greater:satx.

410
00:49:46,866 --> 00:49:50,633
as councilman mungia says, it truly is a partnership. Thank you, frank, for your comments. Of course, toyota has a great team.

411
00:49:52,966 --> 00:49:52,966
I see melinda in the audience too. But as you mentioned, frank,

412
00:49:58,666 --> 00:49:58,666
there's so much that toyota does to uplift our whole community.

413
00:50:08,600 --> 00:50:08,600
I see rosa and jorge. There's such success. I saw y'all give $50 million

414
00:50:16,766 --> 00:50:20,733
in community donations alone last year. That tells us you're invested here, partnered with us, partnered with our city.

415
00:50:23,200 --> 00:50:23,200
thank you for that. We know, all of us here on the dais and in chambers, we

416
00:50:31,200 --> 00:50:31,200
all have the goal to reduce generational poverty and economic development is our

417
00:50:41,700 --> 00:50:45,466
key to that goal. So we have to continue we have to continue doing the work. If we're going to truly

418
00:50:48,433 --> 00:50:48,433
uplift our city, this is the kind of wins it's going to take.

419
00:50:52,733 --> 00:50:52,733
so thank you so much for all of the partnership. Thank you to saws and cps

420
00:50:57,333 --> 00:50:57,333
for their willingness to work here. Let's get it done.

421
00:51:02,133 --> 00:51:02,133
thank you. >> mayor jones: thank you. Thank you.

422
00:51:06,433 --> 00:51:06,433
councilmember viagran. >> viagran: thank you. Toyota has been a

423
00:51:12,700 --> 00:51:12,700
cornerstone employer on san antonio's south side. Toyota has maintained a

424
00:51:18,433 --> 00:51:18,433
manufacturing presence in san antonio for approximately 23 years,

425
00:51:23,266 --> 00:51:23,266
since its establishment. And 20 years since production began,

426
00:51:28,200 --> 00:51:28,200
redirecting sustained investment in the future of our city.

427
00:51:33,233 --> 00:51:33,233
this company, toyota, has demonstrated a long-term commitment to san antonio's

428
00:51:41,266 --> 00:51:41,266
workforce and community. With this today, you continue to show that you

429
00:51:46,900 --> 00:51:46,900
have confidence in san antonio's manufacturing capabilities.

430
00:51:52,833 --> 00:51:52,833
toyota's presence in san antonio represents one of the most significant

431
00:51:57,400 --> 00:51:57,400
economic development success stories in our city's history and serves as a

432
00:52:01,500 --> 00:52:01,500
model for how strategic investment can transform an entire region.

433
00:52:09,033 --> 00:52:11,866
you've been more than an employer. This has been more than an employer. They have been an anchor institution that has

434
00:52:15,500 --> 00:52:15,500
attracted investment, strengthened workforce development efforts, and

435
00:52:20,766 --> 00:52:24,733
created pathways to economic opportunity for generations of families. We saw base closures come, impacting the middle class of the south side -- the

436
00:52:31,666 --> 00:52:31,666
south and west side of san antonio. With toyota's arrival, we

437
00:52:37,400 --> 00:52:37,400
had opportunity again. And this is what it has been since it has established its

438
00:52:45,533 --> 00:52:45,533
operations. A $4.7 billion investment from private sectors make it

439
00:52:53,433 --> 00:52:53,433
one of the largest ever made in this city that says we believe in san antonio.

440
00:52:59,266 --> 00:53:03,200
that we've helped position the south side as a nationally-recognized manufacturing and logistics hub, enhancing san antonio's reputation as a prehere premier

441
00:53:17,300 --> 00:53:21,133
destination. Other people want advanced manufacturing but what you have here, what we have here is a community . It's more than just a

442
00:53:28,333 --> 00:53:28,333
company. We must continue to support responsible economic growth

443
00:53:36,233 --> 00:53:39,833
and infrastructure. I am so excited that this opportunity comes along with this new council and mayor. Because it doesn't always come along.

444
00:53:49,366 --> 00:53:49,366
the former councilwoman rebecca viagran -- we knew what land toyota had.

445
00:53:57,433 --> 00:53:57,433
as we went, as sisters to events, we would ask what are you going to do next?

446
00:54:02,000 --> 00:54:05,300
what are you going to do next? What's coming next? And the opportunity for the rear axel plant came with our last council and that

447
00:54:12,466 --> 00:54:12,466
was exciting to see that kind of growth. Now you have the

448
00:54:16,600 --> 00:54:16,600
opportunity, city of san antonio and this council, to continue to look at the

449
00:54:24,366 --> 00:54:27,933
improvements with a public-private partnership that allows employers like toyota to expand and succeed. Strong infrastructure is one

450
00:54:33,666 --> 00:54:33,666
of the most important factors companies consider when deciding where to

451
00:54:40,233 --> 00:54:42,066
invest. By making these improvements today, san antonio is positioning itself to compete for future employers.

452
00:54:46,633 --> 00:54:46,633
infrastructure is key. Road infrastructure is important and the

453
00:54:51,833 --> 00:54:51,833
improvements to roads and transportation networks help reduce congestion, improve

454
00:54:56,133 --> 00:54:56,133
safety, and enhance mobility for residents and businesses throughout the area.

455
00:55:02,233 --> 00:55:02,233
the continued growth of toyota is not only a victory for the south side and

456
00:55:09,433 --> 00:55:13,066
district 3 but it's a victory for the entire city of san antonio and the state of texas. It strengthens our economy, supports our local

457
00:55:17,233 --> 00:55:17,233
businesses, our state businesses, expands employment opportunities,

458
00:55:21,400 --> 00:55:21,400
and reinforces our position as one of the nation's leading manufacturing

459
00:55:25,600 --> 00:55:25,600
centers. I remain committed to working alongside toyota,

460
00:55:31,666 --> 00:55:31,666
its community stakeholders, and everyone involved. And today I am excited that

461
00:55:38,133 --> 00:55:38,133
the city council of san antonio gets to also say and commit to work alongside

462
00:55:44,600 --> 00:55:44,600
toyota. At this point I would like to enter others that have

463
00:55:49,733 --> 00:55:49,733
indicated their support and that's letters of support from the alamo community

464
00:55:54,800 --> 00:55:54,800
college district and the south texas business partner into the record .

465
00:56:01,333 --> 00:56:05,233
so thank you so much. I look forward to the next steps. I know this is a beginning of the process but as we move forward, understand

466
00:56:10,300 --> 00:56:10,300
that the city of san antonio and the community of san antonio understands and

467
00:56:14,466 --> 00:56:14,466
recognizes the efforts you've put in. And in return, you have

468
00:56:18,666 --> 00:56:18,666
always understood and recognized the value of the people of san antonio, their

469
00:56:22,766 --> 00:56:24,733
abilities, and the workforce that we have here. Thank you. Thank you, mayor. >> mayor jones: thank you. Councilmember meza gonzalez.

470
00:56:29,533 --> 00:56:32,200
>> gonzalez: thank you, mayor. Thank you, toyota, for being here today and to all city staff and greater:satx that helped bring this together

471
00:56:38,166 --> 00:56:38,166
as well as saws and cps. Folks have said this -- and you'll hear it after I

472
00:56:43,133 --> 00:56:46,700
talk -- that toyota has been a great partner for the last 20 years. And so I look forward to supporting this item today. Just a couple of clarifying

473
00:56:51,966 --> 00:56:51,966
questions for the public, because this is such a huge investment.

474
00:56:57,500 --> 00:56:57,500
for alex, the $20 million of

475
00:57:06,500 --> 00:57:09,466
revenue that will be generated through this project. >> gonzalez: and is the reoccurring -- is there a reoccurring annual cost to

476
00:57:15,833 --> 00:57:19,233
our general fund operating budget at all? >> for that debt, no. That's why it's all being included in that item 26. >> gonzalez: wonderful.

477
00:57:22,433 --> 00:57:22,433
thank you. I think for more than 20 years toyota has been a

478
00:57:27,966 --> 00:57:27,966
strong partner. Its presence has helped bring other manufacturers,

479
00:57:34,766 --> 00:57:36,966
including navistar and jcb to the same part of the city. I think we can expect a significant new investment like this from toyota to

480
00:57:42,433 --> 00:57:46,400
signal to other major employers that our city has the resources, the talent, and the vision to be a reliable and effective city to do business with.

481
00:57:51,733 --> 00:57:54,733
this investment represents a strong return for our residents. Toyota is looking at roughly $2 billion in private investment set against a

482
00:58:00,266 --> 00:58:00,266
city package of $142 million. That's a close to $14 of

483
00:58:04,900 --> 00:58:04,900
private investment for every public dollar we commit. Just as important, most of

484
00:58:11,066 --> 00:58:11,066
our share is not cash out the door. It is revenue we only forego

485
00:58:17,533 --> 00:58:17,533
once the $2 billion is built. In return we gain a

486
00:58:21,633 --> 00:58:25,166
permanent expansion of our tax base and a forever revenue stream that continues long after these incentives have ended. I think that's extremely

487
00:58:29,466 --> 00:58:29,466
important to note, as our residents are watching the votes that we take today.

488
00:58:34,566 --> 00:58:34,566
again, I want to thank city staff, greater:satx, saws, cps, obviously toyota, our

489
00:58:42,100 --> 00:58:42,100
local partners that I see in the room today. Thank you for your

490
00:58:46,700 --> 00:58:46,700
commitment to this city. I've known a lot of you folks for a long time and

491
00:58:50,833 --> 00:58:50,833
the commitment is clear and I think you love this city just as much as we all do.

492
00:58:55,100 --> 00:58:55,100
thank you. Again, thank you for considering san antonio,

493
00:58:59,300 --> 00:59:02,600
toyota. Thank you for considering san antonio for an investment of this scale. Thank you so much. >> mayor jones: thank you.

494
00:59:06,566 --> 00:59:06,566
councilmember whyte. >> whyte: thanks, mayor. I'll be brief.

495
00:59:13,833 --> 00:59:13,833
very excited about this. Having toyota here in san antonio for the last 23

496
00:59:20,333 --> 00:59:20,333
years has been a huge win for our city. And the fact that we can do

497
00:59:26,400 --> 00:59:26,400
this today and allow toyota to expand and hire more of our citizens, again, another

498
00:59:34,833 --> 00:59:34,833
win for our people. You know, we talk all the time about creating jobs for

499
00:59:39,533 --> 00:59:39,533
our citizens. Good-paying jobs. We talk about bringing

500
00:59:44,200 --> 00:59:44,200
revenue into our city. We know the budget issues that we're having here right

501
00:59:51,433 --> 00:59:54,300
now. And so how do we bring more revenue into san antonio, into this region, help us do all the other things that we want to do?

502
00:59:58,166 --> 01:00:02,166
it's things like this. So I want to say thank you to toyota. Thank you to this council for being so supportive of this.

503
01:00:06,466 --> 01:00:09,500
this is a win for our city. This is a win for our people. And I look forward to seeing all the great things the city of san antonio and

504
01:00:15,100 --> 01:00:17,066
toyota can do together moving forward. Thanks, mayor. >> mayor jones: thank you. Councilmember kaur. >> kaur: thank you, mayor.

505
01:00:23,866 --> 01:00:23,866
I want to thank city staff, greater:satx, edd department for all of your work and all

506
01:00:28,600 --> 01:00:28,600
the additional folks that erik mentioned put their hard work into this.

507
01:00:35,100 --> 01:00:38,400
greater:satx, sarah, and your team, you have done a great job. To the toyota team, I want to say thank you for your investment into ready to

508
01:00:41,933 --> 01:00:41,933
work. Ready to work is a very unique program that has the

509
01:00:46,700 --> 01:00:50,333
up potential to do so much for our community. I actually had the chance to meet a son of a mom who works at toyota as a part of the ready to work program.

510
01:00:55,766 --> 01:00:55,766
and that son has graduated from high school, from jefferson, is in college

511
01:01:01,366 --> 01:01:05,333
right now, starting his own business. As the ready to work was intended, it's truly changing generational lives. I want to thank you, guys

512
01:01:10,900 --> 01:01:10,900
for the work you have done

513
01:01:16,966 --> 01:01:20,400
all of the investment that you have given into our community at-large. I had a chance to talk with one of your leaders at the gemini, inc. Luncheon at the

514
01:01:29,633 --> 01:01:29,633
sa book festival. That festival, although ones that is potentially on the

515
01:01:35,033 --> 01:01:37,500
chopping block, has really changed lives for a lot of kids . You all continue to invest in the community. I also hope what you hear

516
01:01:41,666 --> 01:01:41,666
today is a group of folks that really believe in your company and that has

517
01:01:46,633 --> 01:01:46,633
continued to invest in you all as you have continued to invest in us.

518
01:01:51,366 --> 01:01:51,366
this body really appreciates everything you have done. I wasn't on the council,

519
01:01:55,600 --> 01:01:55,600
obviously, when you guys first came to the city but now having been able to vote

520
01:02:00,433 --> 01:02:00,433
for the 2024 rear axle plant and this one today, it's an honor to be able to do that.

521
01:02:06,900 --> 01:02:06,900
it's an honor to be able to work alongside of you guys to support our community and

522
01:02:12,933 --> 01:02:12,933
jobs for our community. I also hope what you see is that in a time where we are

523
01:02:19,466 --> 01:02:23,066
having really tough conversations after this with a trial budget that's in a potentially deficit, we still believe in you and believe in your organization

524
01:02:27,700 --> 01:02:27,700
and are willing to double down on our investment. So when you're considering

525
01:02:31,766 --> 01:02:31,766
those potential other cities, just remember that we really want you all here.

526
01:02:37,266 --> 01:02:40,766
regardless of the conversations that happen after this, this is a body that is going to do their due diligence. Is going to make sure we get

527
01:02:44,900 --> 01:02:44,900
the est deal for our residents. And right now we believe in

528
01:02:49,200 --> 01:02:49,200
doubling down on you all. Our conversations after this do not mean that there is a

529
01:02:54,766 --> 01:02:57,700
disbelief in our infrastructure that we cannot handle what you all need. It is a sign that we really are going to do our

530
01:03:02,300 --> 01:03:06,100
diligence on every item. And on this one we feel confident that we have. This is a great package that we hope you will accept. Thank you all for your

531
01:03:10,000 --> 01:03:12,633
investment, again, and thank you to the team for everything that you've done. Thanks, mayor. >> mayor jones: thank you. Councilmember spears.

532
01:03:19,633 --> 01:03:22,966
>> spears: thank you, mayor. It's hard to add to this because you can tell we're all so excited about it. Myself included.

533
01:03:26,800 --> 01:03:26,800
but thank you again to city staff, greater:satx, mike, our economic development

534
01:03:31,766 --> 01:03:34,400
department, all of your hard work. I know it takes a lot of work to get this accomplished. So, great job.

535
01:03:39,666 --> 01:03:39,666
toyota, you've just been a strong corporate partner and it's been 20 years.

536
01:03:44,700 --> 01:03:44,700
I can't believe that. But it's not lost on me. I have a family friend that

537
01:03:50,700 --> 01:03:50,700
works at toyota and the opportunity changed the trajectory of his life for

538
01:03:58,233 --> 01:03:58,233
himself, his wife, and his two kids. On a personal note, I'm

539
01:04:03,500 --> 01:04:07,500
grateful for that. I often talk about the need to attract new businesses to san antonio but I also believe showing how we retain and expand our

540
01:04:14,700 --> 01:04:14,700
world-class employers already operating here is equally or more important.

541
01:04:19,166 --> 01:04:19,166
and you've been a trusted partner for decades and we're very fortunate to have

542
01:04:24,966 --> 01:04:24,966
you here. 2,000 jobs is significant. It's a huge impact to our

543
01:04:30,000 --> 01:04:30,000
community in an area that needs it the most. And we're just truly

544
01:04:35,033 --> 01:04:35,033
grateful for you having the foresight in how that will impact san antonio.

545
01:04:43,466 --> 01:04:43,466
you've already demonstrated a great commitment to san antonio and it goes far

546
01:04:48,233 --> 01:04:48,233
beyond our operations and it's through your workforce initiatives, education

547
01:04:53,333 --> 01:04:57,100
partnerships, and community involvement that this company has become a part of the fabric of our city. As you continue to expand, it's creating opportunities

548
01:05:04,600 --> 01:05:08,033
not just within the plant but through the broader supply chain. That's not lost on me. It's opportunity for so many locally to support

549
01:05:16,400 --> 01:05:16,400
additional employers and our small businesses here. And economic activity

550
01:05:23,000 --> 01:05:23,000
through our whole region. I just think it creates things for our residents and

551
01:05:28,100 --> 01:05:31,000
strengthens our workforce in a way that we can't accomplish on our own. So we're grateful for that. I appreciate your confidence in san antonio and I'm

552
01:05:37,533 --> 01:05:40,233
excited about the opportunities this investment creates for all of us and our workforce and the future generations. I also want to shout out to

553
01:05:46,966 --> 01:05:46,966
txdot, bexar county, and the city staff for their willingness to partner on

554
01:05:51,700 --> 01:05:51,700
this project. It's this kind of collaboration is how we

555
01:05:56,766 --> 01:05:56,766
tackle our biggest transportation challenges. So thank you for that.

556
01:06:01,033 --> 01:06:04,733
txdot has been a tremendous partner in san antonio and I really appreciate their continued investment in our infrastructure that supports

557
01:06:08,900 --> 01:06:08,900
our growing community. Good infrastructure is not just about moving cars, it's

558
01:06:13,300 --> 01:06:13,300
about connecting people to jobs, supporting economic growth, and improving the

559
01:06:18,566 --> 01:06:18,566
quality of life. And I think it's this long-term thinking behind

560
01:06:23,566 --> 01:06:23,566
this effort and the commitment to evaluating solutions that serve our

561
01:06:27,733 --> 01:06:27,733
community for decades to come that we really have to appreciate.

562
01:06:33,300 --> 01:06:36,533
we've seen firsthand how important state transportation investments are to san antonio and the region and to bexar county, and I look forward to our

563
01:06:41,466 --> 01:06:44,500
strong partnership with them. This is just a great example of what can happen when a company sees value and continues to invest in san

564
01:06:51,266 --> 01:06:53,533
antonio. I appreciate so much all this hard work that's gone into this. I know this has taken a lot. So, thank you again and it's

565
01:06:59,100 --> 01:06:59,100
encouraging to see a company of toyota's size and reputation continue to

566
01:07:04,200 --> 01:07:04,200
choose san antonio. I'm really happy to support this item and I look forward

567
01:07:08,800 --> 01:07:08,800
to seeing what this next phase of growth brings. >> mayor jones: thank you.

568
01:07:18,333 --> 01:07:21,866
councilmember castillo. >> castillo: thank you. Ththank you, alex for the presentation. I just wanted to emphasize the hard work of your team

569
01:07:26,600 --> 01:07:26,600
and then of course all the organizations and partners in this very large project.

570
01:07:31,633 --> 01:07:31,633
and, of course, for being quick to respond to a handful of questions that my

571
01:07:37,333 --> 01:07:40,633
team had on short notice. Thank you if your team for your due diligence and getting back to my team and I with those questions. There were a couple of

572
01:07:46,333 --> 01:07:49,933
components I wanted to uplift, particularly toyota's commitment to pay 100% of the additional 2,000 full-time employees' entry wage of with that wage being

573
01:08:00,433 --> 01:08:00,433
an index for future wage growth. I'm pleased that it includes

574
01:08:07,100 --> 01:08:07,100
requirements to include the osha ten safety courses and the programs that will also

575
01:08:12,966 --> 01:08:15,933
address heat-related illnesses. These were changes to the incentive program that my team worked alongside labor and your team, alex, to

576
01:08:20,433 --> 01:08:23,800
ensure we could include this in any future incentive agreement. Grateful to see that applied to this proposal. Further, the city's tax

577
01:08:28,400 --> 01:08:28,400
abatement agreement with toyota includes a commitment from toyota to include 10%

578
01:08:33,000 --> 01:08:36,433
of its annual tax abatement value towards wraparound services each year. I understand the agreement supports community priorities that were

579
01:08:40,566 --> 01:08:44,133
identified in 2024 and approved by council. But I'm hopeful that as part of the focus, toyota and the city of san antonio will continue to strengthen a

580
01:08:51,200 --> 01:08:51,200
local justice-involved employment program such as the one with toyotetsu.

581
01:08:56,033 --> 01:08:59,800
toyota supplier. And that they currently run. Hopefully that's a program that can be strengthened and tied to this project as well.

582
01:09:03,600 --> 01:09:03,600
providing support for local high-quality childcare providers who offer

583
01:09:07,633 --> 01:09:09,466
affordable care to working families. I know that is a priority for you all. And then of course increase the company's support to

584
01:09:13,933 --> 01:09:16,966
career training education program with our local isds. I'm grateful to see the work taking place with somerset isd and their

585
01:09:23,633 --> 01:09:23,633
audio] those partnerships with our isds. The agreement requires the

586
01:09:29,700 --> 01:09:33,533
wraparound support plan at least 60 days prior to the first year of the abatement term with investment completed by december 2031. I understand this is an

587
01:09:38,233 --> 01:09:38,233
agreement that will then require staff approval. But my ask to erik is if

588
01:09:44,233 --> 01:09:44,233
when this agreement comes forward if it can come with the chair's agreement to

589
01:09:50,000 --> 01:09:50,000
ewdc that we can review what those expectations are for council discussion?

590
01:09:57,933 --> 01:10:00,933
>> walsh: sure. >> castillo: to emphasize what my colleagues have highlighted, we know toyota's commitment to the community is strong and

591
01:10:06,000 --> 01:10:07,966
that's evident in the investment in education, community, quality wages, and benefits to our community members. And then I wanted to

592
01:10:12,033 --> 01:10:15,666
highlight one of the programs, y'all's driving possibilities program with the east central isd. And also the additional donation of $70,000 to the

593
01:10:21,533 --> 01:10:21,533
alamo community college foundation to support s.t.e.m. Students and their

594
01:10:25,766 --> 01:10:25,766
training programs at palo alto and st. Philips as part of the toyota experience.

595
01:10:30,433 --> 01:10:30,433
grateful and looking forward to the proposed plan and revisiting what those

596
01:10:35,033 --> 01:10:35,033
wraparound services can look like. Again, just wanted to

597
01:10:42,100 --> 01:10:42,100
emphasize

598
01:10:46,900 --> 01:10:46,900
interested in the e-1616 rider. I appreciate the team

599
01:10:53,400 --> 01:10:53,400
answering those questions. Those are my comments. Thank you.

600
01:11:02,166 --> 01:11:06,066
>> mckee-rodriguez: thank you, mayor. Thank you for the presentation and thank you to everyone for your work on this. Thank you, mr. Voss for being here. It means a lot that you're

601
01:11:10,333 --> 01:11:10,333
here today. I want to convey to you that I am a natural no vote on

602
01:11:14,600 --> 01:11:14,600
incentive packages and I have to be convinced. It's not easy to get me to

603
01:11:18,866 --> 01:11:21,733
agree to some of these major incentives. I want you to understand the weight with which I view items like this. I'll start by conveying the

604
01:11:25,466 --> 01:11:25,466
challenge that's been alluded to that makes this vote significant.

605
01:11:35,133 --> 01:11:35,133
navigating a budget deficit in which our revenue is not keeping pace with our

606
01:11:40,133 --> 01:11:40,133
expenses. Naturally there are two ways to address this.

607
01:11:44,333 --> 01:11:44,333
it's by significantly increasing our revenue through the property tax,

608
01:11:49,100 --> 01:11:49,100
sales tax, or utility contributions, which poses a challenge, as many face

609
01:11:55,600 --> 01:11:58,766
economic hardship. The second way is to decrease expenses by cutting city programs, which poses its own challenge as constituents rely on these

610
01:12:03,733 --> 01:12:06,566
services and these programs that have high expectations of service from us. And the cutting of departments often means job cuts.

611
01:12:10,066 --> 01:12:13,666
and that's more people losing income and facing financial uncertainty. We're going to be navigating that conversation in just a few minutes.

612
01:12:16,600 --> 01:12:20,533
and so I view these incentive packages with scrutiny and I want to be sure that the number of jobs created and their wages and every other community

613
01:12:24,833 --> 01:12:24,833
benefit that we negotiate will outweigh what we are asking our constituents at

614
01:12:29,000 --> 01:12:32,400
the end of the day to contribute to the deal. And so speaking generally about any deal, will the jobs generated be associated with greater home ownership

615
01:12:37,500 --> 01:12:41,166
that increases our property tax base or will the wages be enough for the employees to be able to spend now have to increase our sales tax revenue?

616
01:12:46,666 --> 01:12:46,666
and will both of those outweigh the property taxes we're abating?

617
01:12:52,366 --> 01:12:52,366
will the capital projects take from other needed infrastructure projects?

618
01:12:57,066 --> 01:12:57,066
I appreciate the slides that demonstrates when this began to manifest.

619
01:13:03,500 --> 01:13:03,500
my challenge for future deals, as you navigate many of those, will be how do we

620
01:13:08,233 --> 01:13:08,233
make some of those benefits occur faster. And I would also like to

621
01:13:12,533 --> 01:13:12,533
establish a longer-term master plan that shows us what combination of economic

622
01:13:17,700 --> 01:13:17,700
incentive packages and what quantity should we be aspiring to in order to

623
01:13:22,833 --> 01:13:26,666
significantly increase our revenue so we aren't year after year balancing a budget in deficit. That being said, I'm going to vote yes on today's

624
01:13:30,300 --> 01:13:34,066
incentive package because I feel everyone involved has done a great job negotiating beyond our expectations. Many of the benefits, including the capital

625
01:13:37,666 --> 01:13:37,666
investment, the jobs created, and the wages, especially an entry wage

626
01:13:42,633 --> 01:13:46,133
above $32 an hour, these are phenomenal and aren't very common. And toyota has been a strong partner and one of the major partners choosing to invest

627
01:13:52,100 --> 01:13:55,433
in our residents. I tell my constituents all the time that the reason we don't have the grocery stores, the movie theaters, the amenities, and the

628
01:13:59,800 --> 01:14:03,200
investment of private corporations and developers in our district is they don't see the value in our community until we've been gentrified and new residents

629
01:14:09,866 --> 01:14:09,866
move in. New people they deem worthy move into our district.

630
01:14:14,200 --> 01:14:17,700
you can't force people to invest in communities that they don't care about or believe in. Those industries, employers, and companies that do choose

631
01:14:21,400 --> 01:14:25,000
to invest in you, you value them. And so I appreciate the partnership that we have had with toyota over the past 20-plus years.

632
01:14:28,633 --> 01:14:28,633
this is us, as an organization, investing in you and in your success.

633
01:14:33,866 --> 01:14:33,866
as you contemplate any number of cities willing to have you at the table, our

634
01:14:38,133 --> 01:14:38,133
hope is that you continue to choose and invest in us. Thank you.

635
01:14:43,533 --> 01:14:47,166
>> mayor jones: thank you, councilman. Would anyone else like to speak on the second round? Okay. Great.

636
01:14:53,533 --> 01:14:57,066
thank you, alex, for the presentation. Thank you as well to all the community partners that got us to this day. It's a lot of work and yes,

637
01:15:01,600 --> 01:15:01,600
has been described, a little bit of a start and stop. Over a year ago is -- before

638
01:15:06,666 --> 01:15:06,666
many of us were in the seat, this was discussed and now we're here today.

639
01:15:11,033 --> 01:15:11,033
2,000 jobs is certainly to be something to be excited about, especially when you

640
01:15:15,366 --> 01:15:15,366
think about a company that has the reputation that toyota does.

641
01:15:19,933 --> 01:15:19,933
I do, as alluded to by my colleague, want to make sure the public has transparency

642
01:15:25,500 --> 01:15:25,500
in terms of what we are doing here, though. Alex, can you clarify for

643
01:15:29,866 --> 01:15:29,866
everybody the exception that we made on the wages front? >> so typically, our

644
01:15:36,233 --> 01:15:36,233
incentive policy asks that we look at simply base wages

645
01:15:42,666 --> 01:15:42,666
it's roughly $25 right now. But in particular, for jobs like these, a lot of

646
01:15:49,700 --> 01:15:49,700
advanced manufacturing jobs, there is a lot of cash compensation associated with

647
01:16:07,466 --> 01:16:11,133
overtime. >> mayor jones: just to put a finer point on it, we were comfortable with making the exception because with the base wages and in

648
01:16:14,400 --> 01:16:14,400
accordance with our policy, we get there after six months, correct, alex?

649
01:16:21,100 --> 01:16:21,100
additionally some may be wondering about the incumbent worker training

650
01:16:26,633 --> 01:16:29,933
program which many of us were excited to kill and that is still included here. That was included in the previous package and wanting to be as successful as

651
01:16:33,533 --> 01:16:36,533
possible, we decided it was in the best interest of this deal and our competitiveness to go ahead and include that. So that is why that is still

652
01:16:39,500 --> 01:16:39,500
there. I think for us there's also been a very important lesson

653
01:16:44,433 --> 01:16:44,433
here in terms of the 10% investment of the abatement. When you see there it really

654
01:16:51,233 --> 01:16:54,600
speaks to the city's investment. Unfortunately, due to texas code, we were not able to account for saws and cps's contribution as part of

655
01:16:59,666 --> 01:16:59,666
that. So that is something I've talked to councilman

656
01:17:03,733 --> 01:17:07,400
mckee-rodriguez about, including in our ledge agenda. That is us leading $6.3 million on the table because we could not count

657
01:17:13,533 --> 01:17:13,533
that toward the 10% that would have gone into things like childcare and some of

658
01:17:19,800 --> 01:17:22,333
the other wraparound services that would have contributed to the quality of life of the employee. That is a lesson learned for us.

659
01:17:28,000 --> 01:17:28,000
I do, as mentioned, councilwoman kaur allude today certainly connecting

660
01:17:33,466 --> 01:17:33,466
this topic with an item that we will discuss shortly. I remember as the

661
01:17:40,500 --> 01:17:40,500
undersecretary of the air force, we would make our basing decisions with great

662
01:17:44,866 --> 01:17:47,200
care. Not only would that environment support operations but how would that location also support quality of life.

663
01:17:50,933 --> 01:17:50,933
and certainly this is not a done deal. We're thankful, frank and

664
01:17:55,500 --> 01:17:55,500
team, to where we are now. Grateful for the feedback by us and japanese leadership

665
01:18:00,333 --> 01:18:00,333
that is, again, encouraged by what the city has done. I certainly don't want us to

666
01:18:04,566 --> 01:18:04,566
trip over ourselves or step on our own feet as a result of sending any mixed signals

667
01:18:10,566 --> 01:18:14,400
about our ability to well manage and invest in the infrastructure that you need. Not only when your employees are at work but certainly

668
01:18:18,100 --> 01:18:18,100
when they're at home. When they're at home. They also at home need clean

669
01:18:22,200 --> 01:18:24,800
drinking water. They need their toilets to flush. All those things. And so we need to make sure that we are thinking

670
01:18:29,033 --> 01:18:32,933
strategically, certainly about this investment but also the connectedness to the rate increase that we will consider here shortly with our water system.

671
01:18:45,500 --> 01:18:48,000
okay. Thank you. There's a motion and a second. Hearing no further items, please vote.

672
01:19:16,200 --> 01:19:16,200
the motion carries. >> mayor jones: good morning.

673
01:19:25,069 --> 01:19:25,069
the time is 11:tip and we:10, ae are back from recess. Item 8 is a briefing on the

674
01:19:43,669 --> 01:19:43,669
fy27 trial budget. Staff, over to you. >> mayor, thank you.

675
01:19:48,535 --> 01:19:48,535
as freddie goes up to the podium, this is a continuation of a discussion

676
01:19:54,869 --> 01:19:54,869
we had a couple of weeks ago at the council discussion. We are thankful for the

677
01:20:00,102 --> 01:20:02,635
feedback we received from you. We're bringing back to you a trial budget and some recommendations, but also trying to answer some of the

678
01:20:05,569 --> 01:20:09,569
questions from the work session. So looking forward to today's conversation. The next steps for us would be the development of the

679
01:20:12,969 --> 01:20:12,969
proposed budget that I would deliver to you on august 13th, so we've got a

680
01:20:17,735 --> 01:20:17,735
little under two months to kind of finalize. We are still dealing with

681
01:20:22,369 --> 01:20:22,369
some of the challenges and several of you pointed them out earlier already at the

682
01:20:27,169 --> 01:20:30,135
council meeting, freddie will cover those high level and we'll walk through where we're at with the trial budget and the recommendations.

683
01:20:32,502 --> 01:20:32,502
go ahead, freddie. >> thank you. Good morning, mayor and city

684
01:20:40,835 --> 01:20:43,935
council. My name is freddie martinez and I am the budget director for the city of san antonio. Today's budget presentation will provide a recap of the

685
01:20:49,335 --> 01:20:52,435
session at the convention center. We'll talk about the '27 trial budget acknowledged a little bit on the next steps in the budget process that

686
01:20:55,535 --> 01:20:55,535
the manager just alluded to. Just a couple of things on the trial budget, just a

687
01:21:01,769 --> 01:21:04,369
reminder, it's not a budget yet. We'll come back in august with the proposed budget. It just a preliminary allocation of resources.

688
01:21:08,235 --> 01:21:11,669
however, unlike the five-year forecast that we did last month, we're focusing on the two-year plan for fy27 and 28. We built on those

689
01:21:17,935 --> 01:21:17,935
assumptions in the five-year forecast that we presented last month and we

690
01:21:22,835 --> 01:21:26,435
incorporated the city council feedback and discussion that occurred at the goal-setting session last month. Today's trial budget will

691
01:21:29,102 --> 01:21:32,269
also give an opportunity for the mayor and council to provide additional feedback so we can take that back as the manager mentioned over the next roughly two months

692
01:21:36,935 --> 01:21:36,935
and a proposed budget that will be presented to you on august the 13th.

693
01:21:43,735 --> 01:21:43,735
just a recap of the goal-setting session from may 22nd, so we have city

694
01:21:48,369 --> 01:21:48,369
council priorities as and community priorities that were identified in the

695
01:21:57,669 --> 01:22:00,302
survey by priorities and engagement. On the city council side you can see priorities include public safety, which include police, fire and animal care

696
01:22:04,469 --> 01:22:07,235
services. Infrastructure for streets and sidewalks, human services, which includes services for seniors, housing and homeless

697
01:22:10,335 --> 01:22:13,469
services, and then finally parks, community spaces and library. On the right there of the slide you'll see that the community priorities were

698
01:22:17,469 --> 01:22:17,469
for the most part in line with what the council priorities are, and those

699
01:22:21,802 --> 01:22:25,535
included homeless services, affordable housing, police services, streets and then fire and ems. Also during the goal-setting session we provided a

700
01:22:31,535 --> 01:22:34,435
program inventory analysis for 21 general fund departments. The analysis included a program inventory for about 1.55 billion, which is about

701
01:22:39,569 --> 01:22:39,569
92% of the $1.69 billion general fund budget. Of those amounts, about

702
01:22:46,702 --> 01:22:46,702
1.1 billion, or 72%, were considered mandated city services, of which 39.8% of

703
01:22:52,635 --> 01:22:56,469
those were priority city services. Of the other 427 roughly million dollars, 27.6 are for non-mandated city services, of which 12.4% of

704
01:23:04,702 --> 01:23:04,702
those are for priority city services. Moving on to the trial

705
01:23:10,935 --> 01:23:10,935
budget. So the recommendation today is we recommend the use of a

706
01:23:15,069 --> 01:23:15,069
property tax increase that utilizes the unused increment as well as a state

707
01:23:19,935 --> 01:23:19,935
allowed revenue growth so we can maintain our operations. I do want to point out that

708
01:23:25,769 --> 01:23:29,002
any property tax increase would not affect our seniors or disabled, which accounts for about 46% of our homesteads. For the rest of us that

709
01:23:34,735 --> 01:23:34,735
property tax increase as presented in the trial budget would equate to about

710
01:23:39,402 --> 01:23:43,269
$6.75 a month. I want to reiterate what you've heard in the past that the property tax roll is not final. That won't happen until the

711
01:23:46,002 --> 01:23:49,969
end of july. So the finance department budget and city leadership will continue to work on those numbers and you will see those as part of the

712
01:23:53,102 --> 01:23:53,102
proposed budget in august. The trial budget maintains mandated city services, as

713
01:23:58,202 --> 01:24:01,869
well as priority city services. You'll see in some of the preceding slides potential reductions to other city services, and then we also

714
01:24:06,402 --> 01:24:10,035
have some potential adjusted and new revenues that I'll walk you through here in a second. Overall for our '27 trial budget, this would include

715
01:24:18,269 --> 01:24:18,269
the recommended property tax increase used the unused increment as well as the

716
01:24:22,735 --> 01:24:26,702
3.5% revenue growth. But before that at the current tax rate based on our current information from the appraisal district, we're projecting that our

717
01:24:30,002 --> 01:24:30,002
base values -- base property values will decline resulting in approximately

718
01:24:34,802 --> 01:24:34,802
8.2-million-dollar or 1.7-million-dollar to property tax revenue.

719
01:24:39,102 --> 01:24:42,669
the next row it would be the property tax rate increase that we're recommending with the three and a half percent, as well as the unused increment, which

720
01:24:45,769 --> 01:24:45,769
would increase about 53.8 million for next year. And then our sales tax,

721
01:24:51,702 --> 01:24:51,702
we're projecting a modest two percent increase in sales tax from 416.7 to 425.

722
01:24:59,469 --> 01:24:59,469
cps revenue we are as part of the trial budget projecting a slight decrease

723
01:25:05,569 --> 01:25:05,569
or $11 million from the estimate of 559 million. And then finally, we do have

724
01:25:10,869 --> 01:25:10,869
a small five percent decrease in our revenues. I'm explain the new revenues

725
01:25:15,002 --> 01:25:15,002
in a sec, but we are including in the budget for '27, nine million dollars

726
01:25:20,002 --> 01:25:20,002
for potential new and adjusted revenues. So here are the potential

727
01:25:28,135 --> 01:25:28,135
fee adjustments used to obtain cost recovery. In total over two years they

728
01:25:33,802 --> 01:25:37,735
total $21.9 million so that's included in the trial budget. They include such items as the ems transport fee that will go from $1,500 a

729
01:25:43,002 --> 01:25:43,002
transport to $1,700 a transport, which will generate a little over five

730
01:25:48,369 --> 01:25:48,369
million over two years. The fire prevention fee revenues, about 2.6 over two

731
01:25:55,635 --> 01:25:55,635
years and also adjustments to the hazardous material fees.

732
01:26:00,269 --> 01:26:04,035
next is another potential increase to the parks environmental fee. It's currently two dollars and the proposal here would be to go to 2.50 over two

733
01:26:09,302 --> 01:26:09,302
years, so 2.25 in '27 and 2.50 per month in 28. We also have a proposal

734
01:26:18,169 --> 01:26:18,169
included in the trial budget for a library non-san antonio are the fee

735
01:26:24,569 --> 01:26:27,435
of ten dollars annually and we anticipate that would generate about a million dollars a year. Another line that's new there that you will see is

736
01:26:31,969 --> 01:26:31,969
if you obtain additional cost recovery for city support for events, so this

737
01:26:36,102 --> 01:26:36,102
would include the general fund, expenditures that are allocated for events in

738
01:26:41,702 --> 01:26:44,769
fiesta, like parades and other things taking place during the celebration. Doing that cost share with those organizations would generate about 1.4 over two

739
01:26:49,102 --> 01:26:52,435
years. And finally we have a couple other adjustments. We'll be looking at credit card fees, waste hauler permits and one other thing

740
01:26:56,402 --> 01:26:59,702
that we're going to be doing this summer is that we're going to be working with all departments to try to identify additional sources of revenue, looking at rates

741
01:27:04,635 --> 01:27:08,569
and other revenues that haven't been fee adjusted in quite some time and we're not anywhere near cost recovery or at cost recovery, but we'll bring

742
01:27:12,635 --> 01:27:12,635
those back to you during the proposed budget in august. This next slide talks about

743
01:27:23,502 --> 01:27:26,335
the anticipated general fund increase in expenditures that is included in the trial budget. As you can see, compensation and employee benefits are

744
01:27:30,069 --> 01:27:30,069
going to be the major cost drivers and they're being for about $83 million of

745
01:27:40,035 --> 01:27:40,035
this 105.7 increase. The costs are operation and maintenance for some of the

746
01:27:44,635 --> 01:27:44,635
'22 bond projects coming online, the parks and linear creek way development as

747
01:27:48,869 --> 01:27:48,869
well as

748
01:27:53,969 --> 01:27:57,169
contractual increases, technology, equipment, building maintenance, fuel, all those put together total about 23.6 million. And currently in the trial

749
01:28:03,169 --> 01:28:03,169
budget we're anticipating a requirement of $11.7 million in reductions to balance the

750
01:28:08,902 --> 01:28:08,902
two-year budget. I talked earlier about the property tax increase, the

751
01:28:17,869 --> 01:28:17,869
$58.3 million. Our proposal would be to use those dollars to partially

752
01:28:22,302 --> 01:28:22,302
pay for some of the increases in our public safety, so you'll see

753
01:28:27,902 --> 01:28:27,902
collective bargaining and healthcare benefits in our public safety section is

754
01:28:33,135 --> 01:28:33,135
55 million, civilian comp, mandated costs and contractual increases are

755
01:28:37,202 --> 01:28:40,535
between four and five million and there's other costs for equipment, building, technology, and other costs that are included as part of that

756
01:28:44,235 --> 01:28:44,235
80-million-dollar projected increase in our public safety budgets.

757
01:28:53,902 --> 01:28:53,902
so this slide illustrates our trial budget. I'll call your attention to

758
01:28:58,535 --> 01:28:58,535
the top of the slide. Projected resources. So you will see a note there

759
01:29:03,969 --> 01:29:03,969
that this does not include any of the reductions that we had in the two-year plan

760
01:29:08,769 --> 01:29:08,769
or any revenue enhancements, so we would be facing a deficit in 28 of

761
01:29:15,235 --> 01:29:18,569
157.7 million. So the strategy is to balance our budget over two years would be as I mentioned to utilize the property tax use of the

762
01:29:22,869 --> 01:29:22,869
unused increment as well as a state-allowed revenue growth of 3.5%.

763
01:29:27,469 --> 01:29:27,469
new revenues that we've identified that were on the previous slide would total

764
01:29:31,635 --> 01:29:31,635
21.9 million over two years. And then we would also have to do reductions of about

765
01:29:37,335 --> 01:29:37,335
23.4 million over two years and then you see 32 there's seee there's -- because of the

766
01:29:45,569 --> 01:29:49,502
increases you see above we would have to adjust our financial reserves to maintain the 15% that's required under our financial policies.

767
01:29:57,069 --> 01:30:01,002
what we also heard at the goal-setting session last month is what would it look like if there was no property tax increase and when he to cut our way out

768
01:30:05,102 --> 01:30:08,302
of the deficit. Just keep in mind this is not what we're recommending today, but this is just kind of a look at what those potential cuts would look

769
01:30:15,435 --> 01:30:18,535
like. So currently we're doing comprehensive budget reviews with the library, municipal court, police, fire and human resources.

770
01:30:22,702 --> 01:30:22,702
so we're anticipating at this point to generate about 6.3 million annually.

771
01:30:30,002 --> 01:30:32,769
there's also street maintenance programming in the general fund that's eligible that for debt that we can transfer to the capital budget.

772
01:30:35,702 --> 01:30:39,135
and we're also doing a detailed line item review with all departments across the city, kind of part of our new hybrid budget methodology that we're

773
01:30:42,802 --> 01:30:45,602
doing. We're looking at that and between those two we think we can save about $16 million over two years. Next there are 46 vacant

774
01:30:50,369 --> 01:30:53,002
positions across approximately they are not critical positions, non-critical positions is what we're

775
01:30:56,369 --> 01:30:56,369
looking at. They're vacancies, not anything really vacant --

776
01:31:00,635 --> 01:31:03,602
not currently, but from the last couple of months. These are things that have been vacant six months to a year mostly. So we think we can generate

777
01:31:09,002 --> 01:31:09,002
about -- a little under $8 million in savings there. We would propose a hiring

778
01:31:16,069 --> 01:31:19,735
freeze and approximate pick up a million dollars in '27 and two million dollars in 28. We are also working on some department reorganization.

779
01:31:23,202 --> 01:31:23,202
overall we anticipate that we could save 7.9 million. If we did those it would

780
01:31:28,502 --> 01:31:28,502
affect approximately 46 positions, however. Under that delegate agency

781
01:31:34,302 --> 01:31:37,469
discretionary funding there's a portion of our delegate agency funding that's for discretionary contracts. As part of this proposal or

782
01:31:41,169 --> 01:31:41,169
this scenario, we would forego those $4.9 million in discretionary to the

783
01:31:47,169 --> 01:31:50,302
non-profit partners that participate in delegate agency funding. The biggest number on here or the two biggest numbers of what's left is we have

784
01:31:55,402 --> 01:31:55,402
looked at the program inventories and identified some program service level

785
01:32:00,635 --> 01:32:02,335
reductions. These are across several general fund departments. As you can see there it does I will packet a lot of positions.

786
01:32:06,035 --> 01:32:06,035
now, we're still in the process and we'll work over the summer to if we need to

787
01:32:10,102 --> 01:32:10,102
go through this route to work with the departments, work with leadership to

788
01:32:15,469 --> 01:32:18,935
determine the impacts that we would have to city services if we were to reduce some of these or all of these programs. So we would come back to you

789
01:32:22,969 --> 01:32:26,969
in august with some of those. Finally, to achieve and to mitigate the deficit without a property tax increase, we would need to forego

790
01:32:33,169 --> 01:32:36,969
civilian compensation increases in '27 as well as fy28. So all told, those cuts would add up to about $138 million and there would

791
01:32:44,369 --> 01:32:44,369
be 209 positions affected if we went down this scenario and did these changes.

792
01:32:50,735 --> 01:32:50,735
so next steps, what we're seeking for today is city council input on the staff

793
01:32:56,102 --> 01:32:59,169
recommendation. Just as a reminder that includes an increase in the city property tax rate, the new and adjusted revenues that were presented today as

794
01:33:02,869 --> 01:33:06,402
well as any potential reductions that were listed today. And as a reminder once again we'll be back and we're going to work with the

795
01:33:10,602 --> 01:33:10,602
budget team, departments and executive leadership to produce a proposed budget

796
01:33:16,569 --> 01:33:19,335
that will be presented by the city manager on august the 13th. Mayor and council, that concludes the presentation. I'll turn it back over to

797
01:33:23,535 --> 01:33:25,935
erik. >> thank you for the presentation, freddie. I think the early work that we've done in the spring, the very good conversation

798
01:33:30,202 --> 01:33:30,202
you all had as a group at the work session today puts us in a great position to

799
01:33:35,535 --> 01:33:35,535
balance the budget over the next two years. And there are multiple

800
01:33:40,102 --> 01:33:40,102
pieces of the game on the table here. Just a reminder of the thing

801
01:33:45,269 --> 01:33:45,269
that's kind of balancing -- the balancing piece for me is that just generally

802
01:33:51,202 --> 01:33:54,569
agnostically our expenses are growing faster than revenues so we need to do both things. We need to decrease our revenue -- decrease our

803
01:34:01,169 --> 01:34:03,302
experiences and increase revenue where we have an opportunity. As you heard from freddie, just becaused on the last two and a half weeks of work

804
01:34:09,469 --> 01:34:09,469
we've identified about $22 million over the next two years of new and

805
01:34:14,469 --> 01:34:17,702
adjusted revenue. I think both property tax elements that we've talked about, both up to the three and a half percent state allowed and the use of the

806
01:34:22,135 --> 01:34:22,135
increment, an impact of $6.75, but those two are very different, right?

807
01:34:26,169 --> 01:34:26,169
if we use one rather than the other, if the increment is going to have a potential

808
01:34:34,335 --> 01:34:34,335
impact of $3.66 per month on a household. The three and a half% has a

809
01:34:45,802 --> 01:34:45,802
$3.08 per month impact. And then the reductions that freddie laid out on slide

810
01:34:53,735 --> 01:34:53,735
12, there's a lot of things on there that we're going to need to do, that we should

811
01:34:58,769 --> 01:35:01,702
do regardless, the comprehensive budget reviews that we've done this year of police, fire, municipal court, human resources and library, you know,

812
01:35:06,302 --> 01:35:06,302
regardless of which path we take, you will likely -- you are going to see those

813
01:35:10,869 --> 01:35:14,635
reductions because that's why we go through that effort is to identify the efficiencies. We are going to take every opportunity to take dollars

814
01:35:19,602 --> 01:35:19,602
out of our operating budget and move them into capital to save operating dollars.

815
01:35:25,635 --> 01:35:25,635
we started that two years ago. We did some of that this

816
01:35:30,269 --> 01:35:33,102
year. What freddie laid out to you is kind of the last piece remaining in the general fund and we'll take advantage of that.

817
01:35:36,935 --> 01:35:36,935
we have 217 vacant positions in the general fund right now, and you saw on the

818
01:35:42,302 --> 01:35:42,302
slide we're going to be recommending we eliminate 45, 46 of those positions.

819
01:35:47,602 --> 01:35:47,602
that's okay to do because I think we've got to ebb and flow and bring our expense

820
01:35:52,369 --> 01:35:56,102
rate down. And I'll just echo what freddie said, a lot of the work we're going to do over the next two months is make sure we're communicating to

821
01:35:59,835 --> 01:35:59,835
you all and ultimately the public what those reductions mean in terms of service

822
01:36:07,069 --> 01:36:07,069
impacts. We will focus reductions not in the mandated city service

823
01:36:11,102 --> 01:36:15,002
category and not in the priority city service category, but in that third category of all the other things that we're doing like we've done over the last two

824
01:36:21,102 --> 01:36:23,569
and a half weeks. Appreciate the work of the budget office and the executive staff to get prepared for today. I'll hand it back over to

825
01:36:26,335 --> 01:36:30,335
you, mayor. Thank you. >> mayor jones: thank you, erik. Appreciated that presentation, freddie.

826
01:36:31,369 --> 01:36:31,369
a couple of

827
01:36:39,169 --> 01:36:39,169
revenue, which is at this point the greatest contributor to budget.

828
01:36:43,502 --> 01:36:43,502
we see that going down, though, from one year to the next, just for the public's

829
01:36:48,935 --> 01:36:51,602
benefit, could you please explain why that happens? >> yes. As you recall last month when we did the five-year forecast and the

830
01:36:56,769 --> 01:37:00,469
goal-setting, we picked up in the estimate the cps revenue because of milder weather. Also some sales that cps energy is producing that our

831
01:37:05,869 --> 01:37:09,502
ratepayers are not purchasing, they're selling it in the market. So the off-system sales and not considering the same type of weather patterns

832
01:37:13,302 --> 01:37:13,302
that we do, so a million dollars is a a lot, but it's about two percent of that

833
01:37:18,735 --> 01:37:21,035
559-million-dollar estimate. >> mayor jones: my understanding there's also a tax credit. >> there was also a nuclear tax credit that cps received

834
01:37:25,202 --> 01:37:28,235
from the federal government that had never happened before and we're not banking that it's going to happen forever. >> mayor jones: okay.

835
01:37:31,069 --> 01:37:31,069
thank you for that clarity. Do we have anyone here from the lege team?

836
01:37:37,335 --> 01:37:37,335
sally or jeff, do you want to speak to it? Jeff, gave you the cheap

837
01:37:44,302 --> 01:37:44,302
seats, man. Can you talk to us a little bit about the risk

838
01:37:52,335 --> 01:37:52,335
associated with potentially not taking the increment left?

839
01:37:59,202 --> 01:37:59,202
what has that looked like in the previous legislative session, what can we expect

840
01:38:04,002 --> 01:38:04,002
for us to understand is there a risk of us losing it if we don't take it now?

841
01:38:08,669 --> 01:38:08,669
>> it rolls away. It's three years, right? So after the third year that

842
01:38:13,902 --> 01:38:13,902
increment is gone, so it's a use it or lose it in the law.

843
01:38:19,902 --> 01:38:19,902
it came about because when the legislature lowered the rollback rate from the

844
01:38:24,835 --> 01:38:28,002
previous eight percent to three and a half, a lot of government entities, including ours, said three and a half is something we can live within, but we will

845
01:38:33,702 --> 01:38:33,702
never capture the ups and we'll always deal with the downs.

846
01:38:39,835 --> 01:38:39,835
meaning property values are up during a hot real estate market, they're up above

847
01:38:44,135 --> 01:38:47,602
three and a half percent, we can't capture that revenue, but if it's below that three and a half percent we have to live within that. So the legislature said we

848
01:38:52,035 --> 01:38:52,035
will add that increment model to it so you can tap into the unused property

849
01:38:57,135 --> 01:38:57,135
taxes when you voluntarily have kept your rate below the state-allowed number,

850
01:39:02,435 --> 01:39:02,435
and apply that to sort of smooth out the ups and downs of the real estate market.

851
01:39:07,869 --> 01:39:11,369
so it's there today. Obviously anything can change at the legislature in terms of your question about risk, but that tool is there for cities to be able to

852
01:39:17,102 --> 01:39:20,002
balance out the ups and downs. >> and mayor, in the previous legislative sessions, stay up there jeff for a second to correct me.

853
01:39:24,302 --> 01:39:24,302
but we have it on both ends because in the last legislative session there

854
01:39:28,869 --> 01:39:32,335
was a bill that almost got to the finish line that reduced the three and a half to two and a half and there was discussions in bills that would eliminate that

855
01:39:37,435 --> 01:39:40,035
increment that is there for the reason jeff just explained. So there will be a risk in future legislative sessions. >> that's exactly right.

856
01:39:45,135 --> 01:39:45,135
I think the one thing I would add is that the legislature had always seen

857
01:39:49,969 --> 01:39:53,835
it as this is local control that local officials have. We're giving you the ability to adjust your rate to draw the amount of revenue you need, we just don't want it

858
01:39:58,702 --> 01:39:58,702
to go up uncontrolled without any changes to the rate, if that makes sense.

859
01:40:03,669 --> 01:40:07,402
>> mayor jones: thank you. Appreciate that. And just for plain speak for the public that's watching, one of the recommendations is transferring items from

860
01:40:13,069 --> 01:40:13,069
our operational budget to the debt. That essentially means not

861
01:40:17,135 --> 01:40:17,135
paying for it with cash today, but putting it on our credit card, correct, erik?

862
01:40:25,002 --> 01:40:28,835
>> yes, ma'am. Yeah. But we don't have a credit card that does that, just so that the public understands. [laughter].

863
01:40:33,835 --> 01:40:37,369
>> mayor jones: too bad, somebody already submitted the or. Okay. Councilwoman viagran. >> viagran: thank you,

864
01:40:44,335 --> 01:40:44,335
thank you for the presentation. This budget is of course --

865
01:40:50,802 --> 01:40:50,802
I knew was on the horizon after covid. I didn't know it would come

866
01:40:57,269 --> 01:40:57,269
in this time where we would be in military conflicts around the world, which we

867
01:41:02,835 --> 01:41:02,835
should not be in, but that's another conversation. So to go to the last slide

868
01:41:08,302 --> 01:41:08,302
where you want input from seeking slide 13, increasing city property tax rate, yes,

869
01:41:16,602 --> 01:41:16,602
I am for using the unused increments and seeing where we can do that.

870
01:41:23,102 --> 01:41:26,702
in terms of new revenues I think we need to look at our permitting process. I think we have opportunities there with garage sale permits, with

871
01:41:33,869 --> 01:41:33,869
permits of all the vendors that line up southwest military drive, and that.

872
01:41:38,069 --> 01:41:38,069
so I think we need to look at that. And then and with the

873
01:41:43,902 --> 01:41:43,902
reductions we do need to look at our departments and spend the summer

874
01:41:49,535 --> 01:41:53,335
right-sizing just our commodities and our contracts and what we need, what can be done in-house, what do we need to use our oncall for, doing that in a

875
01:42:00,535 --> 01:42:00,535
timely matter. I think that's the opportunity we have.

876
01:42:05,002 --> 01:42:05,002
when we talk about our economic ecosystems and we talk about our budget, I

877
01:42:10,569 --> 01:42:10,569
want to be clear that a household budget is not a city budget, which is not a

878
01:42:17,369 --> 01:42:17,369
business budget. So what I'm going to do for my summer project is I am

879
01:42:22,902 --> 01:42:26,869
going to work with my community stakeholders, and I'm so glad so many of the businesses are out here, to do a really budget workshop with the residents of

880
01:42:32,335 --> 01:42:36,069
district 3 where they come in together, they look at their household budget, and while the city gets their right size, that maybe we in our own homes look at how we

881
01:42:45,035 --> 01:42:45,035
right-size our commodities and our subscriptions and things likes that.

882
01:42:51,102 --> 01:42:51,102
I look forward to seeing my residents in my field office this summer for that, but

883
01:42:56,769 --> 01:42:56,769
what I will like, and if we can go to slide 6, before I have that workshop, if we

884
01:43:03,769 --> 01:43:03,769
could pull up slide 6, the trial budget, is we have that $6.75 a month on

885
01:43:12,435 --> 01:43:16,302
homestead, but do we have a percentage so if residents are doing a worksheet and they know their house is pretty small, pretty old, maybe only their -- it's

886
01:43:23,235 --> 01:43:26,735
worth $80,000. That happens on the southside. What would their increase look like? >> so with the increment and

887
01:43:32,602 --> 01:43:32,602
the three and a half percent it's about a six percent increase, and that's using

888
01:43:36,669 --> 01:43:40,035
the average homestead. >> viagran: okay. So that's the one thing I'd like them to see is if I know my property taxes are going to go up six percent,

889
01:43:47,569 --> 01:43:47,569
what does that look like monthly. Thank you for that.

890
01:43:52,135 --> 01:43:52,135
the other thing is I think we do need to look at our seniors and those living

891
01:43:59,369 --> 01:44:02,135
with disabilities and making sure they're using the tax freeze. I look forward to working with the county on that as we take that information out

892
01:44:13,035 --> 01:44:13,035
out. For me this really is -- I'm not for -- I don't want to

893
01:44:21,102 --> 01:44:21,102
cut any staff. I can understand hiring freeze and I know we have

894
01:44:26,602 --> 01:44:26,602
vacant positions, but I'm okay with the hiring freeze, but if we go to the slide 11

895
01:44:38,835 --> 01:44:42,435
with 11 or 12. Filled positions, vacant positions. I don't like the idea of putting any of our employees out there looking for a job

896
01:44:53,102 --> 01:44:53,102
when I know in district 3 alone we need -- there are departments that are

897
01:45:01,002 --> 01:45:03,735
understaffed. Before we do that I want to make sure that where we're needed and the departments that we're needed in terms of the hiring freeze that we

898
01:45:09,135 --> 01:45:09,135
do that before we start looking at reductions that illustrate filled positions.

899
01:45:21,102 --> 01:45:24,935
and that 68 is problematic for me. They're all a problem. Anything that has a filled position where we're looking at cutting because we need

900
01:45:30,069 --> 01:45:30,069
like the quality of service. And no civilian compensation increase, that's

901
01:45:36,802 --> 01:45:36,802
unacceptable. We can ask the residents of san antonio -- everything is

902
01:45:41,535 --> 01:45:41,535
going up in price. We can ask them to increase that so they can increase

903
01:45:50,035 --> 01:45:52,169
their property tax to maintain the quality of service they have. And to ask our civilians to take on more responsibility but we're not going to give

904
01:45:59,769 --> 01:45:59,769
you a simple living wage increase is problematic. And that would include lgc

905
01:46:04,302 --> 01:46:04,302
employees also? >> yes, ma'am. >> viagran: that is

906
01:46:11,102 --> 01:46:14,435
problematic. That is why I think this conversation where if the property tax rate is not increased where we're going to do this, and again, if

907
01:46:22,169 --> 01:46:25,335
you bring me something that we're going to cut projects we have to use an equity lens and a safety lens where we're cutting projects. And that is also if we don't

908
01:46:35,502 --> 01:46:35,502
increase the property tax then we have to do it from projects that are flood

909
01:46:39,735 --> 01:46:43,002
projects, that are sidewalk projects, that are street projects, that need to be done. And what I would need is if this body cannot give you

910
01:46:50,135 --> 01:46:53,102
alternatives but they tell you they're not going to give you a property tax rate increase, you need to tell me how much it's going to cost in 2030 to fix that

911
01:46:59,102 --> 01:47:02,569
street or to get that drainage. Because the price is not -- is only going to go up. They're not falling. Concrete is only getting

912
01:47:07,169 --> 01:47:10,835
more expensive. And we can sit here and we can hope, oh, the technology will catch up and we'll do this. We all know that the first

913
01:47:16,502 --> 01:47:16,502
version of any technological program that is going to help us do things better is

914
01:47:21,035 --> 01:47:21,035
expensive. So I need to -- I want to do this smarter, I want to do

915
01:47:25,169 --> 01:47:25,169
this fairly, but what I need --o understand is that the power of the city of san antonio

916
01:47:32,702 --> 01:47:32,702
is in the people power, and eliminating staff is not the answer.

917
01:47:37,935 --> 01:47:37,935
so I am for the property tax increase. I still think my city store

918
01:47:42,969 --> 01:47:46,702
idea is a great idea. I don't know where alex is. I think we could get a lot of revenue from that. But again, we need to start being creative.

919
01:47:50,935 --> 01:47:50,935
and I can give you a list of projects that I think might be delayed, but I would

920
01:47:59,402 --> 01:47:59,402
still want that number that says if we delay this another year, if we don't do

921
01:48:04,702 --> 01:48:07,869
this drainage project this year this is how much it's going to cost the year after. So nobody wants to raise taxes, I understand that.

922
01:48:14,702 --> 01:48:14,702
everybody's stretched, me included. But we have to prioritize

923
01:48:22,269 --> 01:48:25,669
and we have to budget and we have to get our residents in and ask them where are we spending money? And the vendors had no problem making money these

924
01:48:29,935 --> 01:48:29,935
past few weeks. So there are places that we can look at our budget and

925
01:48:34,702 --> 01:48:34,702
be more effective. And san antonio is resilient and san antonians know how

926
01:48:41,102 --> 01:48:41,102
to hustle, so I think we will -- we need to have those conversations.

927
01:48:45,235 --> 01:48:48,969
I look forward to hearing from my council colleagues and their solutions for that last slide. Thank you. >> mayor, one thing, just

928
01:48:54,235 --> 01:48:57,602
that the councilwoman was talking about the senior and disabled tax freeze, just to remind the council of a stat that we shared with you at the work session.

929
01:49:01,402 --> 01:49:01,402
46% of our homesteads are frozen in terms of city taxes in the senior and

930
01:49:12,269 --> 01:49:15,435
disabled tax freeze. When we talk about adjustments to the rate, 46% of the homesteads will not be impacted because we've got that freeze in place.

931
01:49:20,002 --> 01:49:20,002
>> mayor jones: thank you, erik. Councilwoman alderete

932
01:49:24,035 --> 01:49:24,035
gavito. >> gavito: thank you. Thank you, freddie, for the

933
01:49:29,069 --> 01:49:29,069
presentation. Obviously this isn't a great position for us to be in but

934
01:49:34,202 --> 01:49:34,202
we were elected to represent our residents and to manage our city budget, and that

935
01:49:39,502 --> 01:49:39,502
includes making tough decisions. So I am appreciative of the

936
01:49:45,402 --> 01:49:45,402
diligent analysis. I am fully aware that this was tough and comfortable --

937
01:49:50,235 --> 01:49:50,235
a tough and uncomfortable exercise to go through. And I know we'll probably

938
01:49:54,535 --> 01:49:54,535
have to go through some more iterations. So again, we have to make

939
01:50:01,102 --> 01:50:01,102
tough choices right now. I am fully supportive of the fee adjustments on slide 8,

940
01:50:06,169 --> 01:50:06,169
but in addition to that, I'd like us to explore other increases.

941
01:50:11,069 --> 01:50:11,069
I know that my colleagues and I up here always hear feedback -- and judge, don't

942
01:50:22,002 --> 01:50:25,802
get mad at me. We always hear about speeding and code compliance issues. I would like us to use this opportunity to do something

943
01:50:28,435 --> 01:50:28,435
about it and look at exploring an increase on speeding tickets and code

944
01:50:36,235 --> 01:50:36,235
compliance tickets. I fully understand that judges will have the

945
01:50:41,502 --> 01:50:41,502
discretion, on what fine to impose, but if we want to disincentivize speeding

946
01:50:48,802 --> 01:50:48,802
let's make it hurt. If we want to disincentivize code compliance issues in

947
01:50:53,135 --> 01:50:53,135
our neighborhoods, then let's make it hurt. But I think I'm saying all

948
01:50:58,735 --> 01:51:01,202
that because I want us to explore what is legally feasible. I'm fully aware that there may be some legal restrictions, but again, I

949
01:51:08,635 --> 01:51:08,635
think that this is a good time to look at that kind of stuff, especially so that we

950
01:51:14,369 --> 01:51:14,369
can all complain about it a little bit less. On slide 12 I'm fully

951
01:51:19,702 --> 01:51:19,702
supportive of everything on there and I think that we can do more on some of these

952
01:51:28,902 --> 01:51:28,902
reductions in all of the line items.  The only thing I am not in favor of is no

953
01:51:34,002 --> 01:51:36,435
civilian compensation increase. I think that our city employees are going to have to do more with less resources and less partners

954
01:51:43,935 --> 01:51:47,502
to lean on to get the job done. I do think and I'm going to stand firm that we treat our city employees fair and give them the cost of living wage

955
01:51:53,069 --> 01:51:56,835
increase. There might be less headcount in the city at the end of this all, but that should not take away from taking care of the city

956
01:52:02,202 --> 01:52:02,202
employees that we do have. So I just wanted to let y'all know I'm not in favor

957
01:52:07,169 --> 01:52:10,569
of that. Right now I still think that we need to go through a couple more iterations of this tough exercise. So I can't be supportive of

958
01:52:14,935 --> 01:52:14,935
a property tax increase right now, but I know we're still at the very beginning

959
01:52:21,102 --> 01:52:21,102
of it and there's still more work to do. That's all of my comments.

960
01:52:25,602 --> 01:52:25,602
thanks. >> mayor jones: councilman whyte.

961
01:52:36,702 --> 01:52:39,269
>> whyte: thank you, mayor. Well, from the git-go I'm going to say that I'm absolutely opposed to any sort of property tax

962
01:52:46,102 --> 01:52:46,102
increase. I think we're living in tough economic times right

963
01:52:51,602 --> 01:52:51,602
now certainly, and raising the cost of living on people is unacceptable,

964
01:53:01,435 --> 01:53:01,435
particularly when I don't believe that we've done everything that we can as a

965
01:53:05,869 --> 01:53:05,869
city government to eliminate all of the waste, the redundant spending.

966
01:53:13,035 --> 01:53:13,035
and frankly, made some of the hard decisions on the nice-to-haves.

967
01:53:19,969 --> 01:53:19,969
and I want to say before I go further that I am very thankful for city staff and

968
01:53:26,602 --> 01:53:29,402
the work that's been done over the past couple of months because I know that this is difficult. And a lot of work has been done to find these

969
01:53:36,302 --> 01:53:39,835
inefficiencies that I'm talking about, to try to consolidate in different areas and to try to find money to close this budget gap.

970
01:53:46,569 --> 01:53:49,469
but I think there's more that we can do. And I'll tell you, my staff did some great work and we looked around at other cities across the country

971
01:53:55,469 --> 01:53:55,469
because they're facing similar challenges. Just to name a couple here,

972
01:54:02,502 --> 01:54:02,502
colorado springs, they had a 31-million-dollar shortfall that they were able to

973
01:54:08,135 --> 01:54:08,135
reduce with workforce reductions, furloughs, deferred compensation

974
01:54:12,335 --> 01:54:12,335
increase and some facility closures. San diego as well eliminated

975
01:54:20,902 --> 01:54:20,902
some recreational services, arts funding and others. In austin, voters rejected a

976
01:54:25,202 --> 01:54:25,202
property tax increase and now their city government is looking at cutting some of

977
01:54:32,569 --> 01:54:32,569
the similar things there. But I particularly want to point out something from

978
01:54:40,035 --> 01:54:40,035
colorado springs because they eliminated what they call the meadow park

979
01:54:48,369 --> 01:54:51,102
community center. And I'll tell you why I want to bring this up. It says here the community center was going to close following an evaluation of

980
01:54:57,102 --> 01:54:57,102
program participation, staffing constraints, and availability of similar

981
01:55:03,969 --> 01:55:03,969
services at other nearby community centers. They did not want to close

982
01:55:11,135 --> 01:55:11,135
this community center that had been there for decades in that community.

983
01:55:17,135 --> 01:55:17,135
but the reason I bring that up today is because these are the type of hard

984
01:55:23,202 --> 01:55:23,202
decisions that they were able to make, that they had to make that I think our

985
01:55:29,202 --> 01:55:29,202
council needs to look at. If it was brought before us to close a community center,

986
01:55:37,202 --> 01:55:37,202
I think we would all immediately say wow, no, we don't want to do that

987
01:55:42,235 --> 01:55:42,235
because we know the value that the community centers have for our residents.

988
01:55:46,369 --> 01:55:46,369
but I use that as an example of the tough decisions that I believe we need to get to.

989
01:55:54,869 --> 01:55:54,869
if we do this property tax increase, based on our own staff's financial analysis,

990
01:56:02,402 --> 01:56:02,402
all right, we are still going to have a general fund deficit of $155 million in

991
01:56:14,335 --> 01:56:14,335
2031. So a property tax increase, it's just a band-aid to get

992
01:56:21,702 --> 01:56:21,702
us through the next couple of years. It doesn't solve the

993
01:56:29,102 --> 01:56:29,102
problem. We have a structural issue here with the way our city

994
01:56:36,969 --> 01:56:36,969
government is spending money. We've got to right-size,

995
01:56:45,035 --> 01:56:45,035
we've got to make the tough decisions like some of these other cities are.

996
01:56:49,069 --> 01:56:49,069
and I do believe that we're on the path to doing so and our budget team has done a

997
01:56:55,669 --> 01:56:55,669
great job of putting us on that path, but there is more to be done.

998
01:57:03,135 --> 01:57:03,135
and the time to do it is right now. And we should not use that

999
01:57:10,869 --> 01:57:10,869
band-aid and raise taxes on the citizens of san antonio. So with that, I'll leave you

1000
01:57:18,402 --> 01:57:18,402
with -- I do agree on the fee adjustments. I think that is a reasonable

1001
01:57:25,035 --> 01:57:25,035
area where we can raise some revenue. I'm of course a no on the

1002
01:57:32,269 --> 01:57:32,269
tax increases. I will say again an area where we need more is in

1003
01:57:41,069 --> 01:57:41,069
public safety. And I get the argument of, well, mark, we're in a

1004
01:57:47,735 --> 01:57:47,735
budget deficit. How can we add in any area? And again, I'll say when

1005
01:57:52,135 --> 01:57:52,135
public safety is your number one priority, when you're putting a budget together,

1006
01:57:59,635 --> 01:57:59,635
you start with what you need for public safety and then you build out everything

1007
01:58:05,735 --> 01:58:08,335
else around it. And that's what we should be doing here. So with respect to the trial budget and what I'd like to see in the fall is I would

1008
01:58:11,635 --> 01:58:14,902
like to see funding for the additional 65 police officers. That's all I've got, mayor, thanks. >> mayor jones:

1009
01:58:27,269 --> 01:58:27,269
councilmember mckee-rodriguez. Sorry, meza gonzález.

1010
01:58:33,669 --> 01:58:37,369
>> gonzález: thank you, mayor, and thank you for the presentation. Again, folks after me will say this is a hard time for everybody.

1011
01:58:39,902 --> 01:58:39,902
we know budgets are tight for everyone personally and we see items on the news,

1012
01:58:45,635 --> 01:58:48,469
right, alamo colleges is going through this, bexar county is going through this, some of the school districts are also talking about these property tax

1013
01:58:55,402 --> 01:58:58,835
increases and we're one of those entities as well. A couple of clarifying questions for the public. On the potential fee adjustments listed, are

1014
01:59:06,102 --> 01:59:09,702
there any other potential fee adjustments that are not listed, but we're talking through? >> yes, councilwoman, there are other things we're

1015
01:59:17,769 --> 01:59:20,135
looking at that we'll be doing over the course of the summer. Another thing we'll be doing is part of the budget process that we do is the

1016
01:59:23,335 --> 01:59:23,335
budget office meets with every department and we go through any potential

1017
01:59:27,435 --> 01:59:30,102
revenue adjustments they can propose and then we bring that to city leadership and ultimately a lot of those will be presented on the 13th of august.

1018
01:59:33,402 --> 01:59:33,402
>> gonzález: I know that awhile back we took my daughter to the san pedro

1019
01:59:38,502 --> 01:59:38,502
driving range and we had a municipal golf pass that we used for the year.

1020
01:59:42,702 --> 01:59:42,702
I didn't know if that was an option my colleagues would consider of having some sort

1021
01:59:48,902 --> 01:59:48,902
of monthly parking pass for our parks. Maybe not so much -- that

1022
01:59:56,269 --> 01:59:56,269
gives you some access all over the city, and we make it like a yearly pass,

1023
02:00:03,869 --> 02:00:03,869
excuse me, so I'd like to consider what that looks like

1024
02:00:08,735 --> 02:00:12,335
>> we'll have discussions with parks and rec and we can certainly bring that up and have a conversation on it. >> gonzález: okay, thank

1025
02:00:15,502 --> 02:00:15,502
you. On the library non-resident fee, how is that

1026
02:00:20,702 --> 02:00:20,702
implemented? >> so the non-resident fee as currently proposed would

1027
02:00:27,735 --> 02:00:27,735
be kind of like the library is able to track those users that are not in the city

1028
02:00:32,002 --> 02:00:32,002
limits so they would impose -- if this were to come to fruition and be

1029
02:00:37,135 --> 02:00:41,069
passed as part of the budget they would am impose that ten-dollar fee, like you described that parking pass, it's a 10-dollar fee and it would be for bexar county

1030
02:00:45,102 --> 02:00:48,435
residents that are outside the city limits. >> councilwoman, as we go through the budget and look at this, the actual implementation is almost as

1031
02:00:52,269 --> 02:00:52,269
important as what the dollar amount is. So I would anticipate if we

1032
02:00:58,002 --> 02:00:58,002
do it we would make it effective october 1. We do like a january 1.

1033
02:01:02,635 --> 02:01:02,635
there have to be notices. We want to make sure people are advised of it and have a

1034
02:01:06,869 --> 02:01:06,869
mechanism for them to be able to be aware of that impending potential charge

1035
02:01:12,735 --> 02:01:16,235
when they're checking out books in september and october, so that everybody has got a preparation. But we're going to think through the execution of

1036
02:01:19,502 --> 02:01:19,502
that as we go through the next it two months. >> if I may, councilwoman,

1037
02:01:24,602 --> 02:01:24,602
as another example, a fee needs to be cost recovery. And one of the reasons we

1038
02:01:28,802 --> 02:01:28,802
can do that is because we are not recouping our current costs in terms of

1039
02:01:33,869 --> 02:01:33,869
non-city residents. >> gonzález: thank you. On the slide outlining the

1040
02:01:39,869 --> 02:01:39,869
reductions, I think it's slide 11, what is the program service level

1041
02:01:45,235 --> 02:01:45,235
reductions. Can you provide some examples of that?

1042
02:01:52,469 --> 02:01:52,469
>> so as the mayor -- as the manager alluded to, those are going to be out of that

1043
02:01:57,102 --> 02:01:57,102
bucket of other city services, so there's a variety of other city

1044
02:02:01,269 --> 02:02:01,269
services across some general fund departments that would be part of that.

1045
02:02:07,702 --> 02:02:07,702
so as we go through this summer we'll be looking at reductions that we can do,

1046
02:02:12,169 --> 02:02:12,169
but these would be program-specific reductions that we would do.

1047
02:02:16,769 --> 02:02:20,135
so it would reduce the service level, but we would need to use the summer to look at what the impact would be of those reductions and then that would be

1048
02:02:25,102 --> 02:02:25,102
presented as part of the 2027 proposed budget. >> gonzález: okay, thank

1049
02:02:30,869 --> 02:02:30,869
you. I think, you know, we've got the email from cne about our

1050
02:02:38,069 --> 02:02:38,069
budget town halls, and my budget town hall in district 8 is august 20th and we're

1051
02:02:44,469 --> 02:02:48,135
june 18th, right? So these next two months what are these residents hearing from us from the city outside of a survey. I don't know if anyone can

1052
02:02:51,269 --> 02:02:51,269
help answer that question. >> councilwoman, we won't have -- after today we'll

1053
02:03:00,302 --> 02:03:03,802
start working on the proposed budget, so I think this was a conversation during the council work session a couple of weeks ago if you all want to cost

1054
02:03:11,135 --> 02:03:11,135
conversations during the month of july or have us organize in your districts

1055
02:03:16,935 --> 02:03:19,869
additional council conversations, budget conversations in the month of july, more than happy to do that. But we don't have -- we will

1056
02:03:25,602 --> 02:03:28,669
not have a final product to share with you, so it's more about the input and maybe explaining what the potential impacts would be, some of the things we're

1057
02:03:31,369 --> 02:03:31,369
looking at, but we won't have anything time until the end of july, early august.

1058
02:03:36,669 --> 02:03:36,669
>> gonzález: yeah. I wouldn't be opposed to that.

1059
02:03:41,802 --> 02:03:45,202
I know it's hard and folks are traveling. I think because of the times we're in and we're doing what we did in the last budget cycle, it's almost

1060
02:03:50,169 --> 02:03:53,735
the same calendar.  I think even my town hall I think is around the same month as I had it last year. So just because we're in such unique times with our

1061
02:04:01,035 --> 02:04:01,035
budget, I feel like there should be an effort made to maybe this time around go

1062
02:04:06,102 --> 02:04:06,102
out for feedback, right, because how we relay this back to -- it's as simple

1063
02:04:12,802 --> 02:04:12,802
sometimes for me as if c and e even has some graphics on hand that they can just send

1064
02:04:20,269 --> 02:04:20,269
out to the council offices, we end up making those a lot of times on our own, which

1065
02:04:25,169 --> 02:04:25,169
is fine too, but just kind of to summarize some of these big conversations, we

1066
02:04:30,769 --> 02:04:30,769
try and do that. As simple as that, but I think going out there to the

1067
02:04:35,269 --> 02:04:35,269
community and asking for that input is important because if not, we're really

1068
02:04:41,502 --> 02:04:41,502
not going to talk to them for another couple of month. >> we can follow up with

1069
02:04:46,402 --> 02:04:49,702
each one of your offices about whether or not you want to do some of that stuff in july and graphics and so forth. July is always going to be

1070
02:04:57,835 --> 02:05:00,935
busy. >> gonzález: I know, I know. >> I don't think that's any reason that we can't have evening or weekend events.

1071
02:05:04,969 --> 02:05:07,535
we'll work with each of your offices. >> gonzález: thank you so much. I guess the feedback you're looking for on slide 13 on

1072
02:05:11,702 --> 02:05:15,069
reductions, I'm supportive of the reductions that we're making. I know this is a tough time for city staff and they are doing the work.

1073
02:05:20,702 --> 02:05:20,702
they don't run for office to do this work, they're doing this every single day, come

1074
02:05:25,135 --> 02:05:28,802
into work and going home to their families. So to make sure that our city staff is not impacted by this, that's important to me.

1075
02:05:34,369 --> 02:05:34,369
the new revenue, I appreciate the work that our budget office is doing to

1076
02:05:38,635 --> 02:05:38,635
look for that new revenue. And ideas that my council members have, increasing the

1077
02:05:50,635 --> 02:05:50,635
I think without talking to residents, I've been to a few hoa meetings the last

1078
02:05:54,902 --> 02:05:54,902
couple of weeks and the reaction I'm so, can't support something

1079
02:06:00,969 --> 02:06:04,302
like that at the moment, but I know we're just starting these conversations. And I also know residents expect to receive the type of services from the city.

1080
02:06:10,902 --> 02:06:14,669
they have expectations on the services that they receive from us. So, keeping that in mind. I look forward to further discussions on this.

1081
02:06:20,435 --> 02:06:20,435
thank you. >> mayor jones: thank you. Councilwoman spears.

1082
02:06:25,435 --> 02:06:25,435
>> spears: thank you, mayor. So, I have been meeting with

1083
02:06:31,769 --> 02:06:31,769
my constituents. We've got about three budget town halls teed up at the

1084
02:06:37,802 --> 02:06:37,802
end of july. And the one with c&e, I think mine's on the 19th.

1085
02:06:46,002 --> 02:06:48,602
to councilwoman meza gonzalez's point, it would be great if we could engage c&e more there. Right now my constituents are not supportive of the

1086
02:06:56,969 --> 02:06:56,969
tax increase. I will say I agree with the fee adjustment idea and this

1087
02:07:03,602 --> 02:07:03,602
is just a really hard time, right? It's hard for us to be up

1088
02:07:08,935 --> 02:07:08,935
here and every day facing our constituents, talking about how do we cut back on

1089
02:07:15,769 --> 02:07:15,769
things when the needs are so great. I've got to remain focused

1090
02:07:22,069 --> 02:07:22,069
on the basics of what we're supposed to do here and what our residents expect.

1091
02:07:27,202 --> 02:07:27,202
I know that our families are all -- all the families in san antonio and in the

1092
02:07:31,802 --> 02:07:31,802
community are feeling a lot of pressure and a lot of higher costs everywhere they

1093
02:07:37,169 --> 02:07:40,735
go. So, I appreciate that we're having this serious conversation about our priorities and where we can find some efficiencies

1094
02:07:45,135 --> 02:07:45,135
within the budget. I do really want to look at that before we really -- I

1095
02:07:52,635 --> 02:07:52,635
appreciate that that's going to take some time but I want to really see how we can be

1096
02:07:58,435 --> 02:07:58,435
more efficient with the dollars before we start really talking about the tax

1097
02:08:03,735 --> 02:08:03,735
rate increase. As always, public safety is my top priority and

1098
02:08:08,935 --> 02:08:08,935
residents need and want safe neighborhoods and fast emergency response times.

1099
02:08:14,069 --> 02:08:14,069
and enough officers on the streets to keep our community safe.

1100
02:08:19,435 --> 02:08:19,435
I say this too because there's this misconception that my district does not

1101
02:08:24,535 --> 02:08:24,535
need more officers. But firsthand this week I found that simply untrue.

1102
02:08:29,902 --> 02:08:29,902
I had two separate shootings in district 9 this week. One involving a teenager who

1103
02:08:35,302 --> 02:08:35,302
was found deceased and another involving a police officer.

1104
02:08:41,102 --> 02:08:44,102
these are a stark reminder that our police department must remain a top funding priority as we work to recruit, retain, and support more officers.

1105
02:08:47,902 --> 02:08:47,902
and our fire departments have needs that we simply cannot defer.

1106
02:08:53,269 --> 02:08:53,269
somehow they make it work with less. And maybe we can ask them

1107
02:08:58,735 --> 02:09:02,502
how we do that better ourselves. But residents are paying their taxes and they expect the basics to be done well, and that is resoundingly

1108
02:09:08,869 --> 02:09:12,602
public safety, infrastructure, streets, drainage, and core city services. And so we have to do those first.

1109
02:09:16,269 --> 02:09:16,269
every dollar that we spend should be measured against whether it's improving the

1110
02:09:20,835 --> 02:09:20,835
quality of life of the taxpayers who are funding it.

1111
02:09:25,169 --> 02:09:25,169
I've heard loud and clear from my residents that they want us to look for savings,

1112
02:09:30,735 --> 02:09:30,735
eliminate lower-priority spending, and make tough decisions before considering

1113
02:09:36,135 --> 02:09:36,135
the additional tax burdens. This budget process is our opportunity to refocus on

1114
02:09:41,135 --> 02:09:41,135
the fundamentals and ensure taxpayer dollars are being directed to services

1115
02:09:46,135 --> 02:09:50,102
residents rely on most every day. I actually do look forward to working on this. This is something I enjoy looking at.

1116
02:09:55,635 --> 02:09:55,635
and I'm ready to dive in and help wherever needed on looking at how to be more

1117
02:10:01,669 --> 02:10:01,669
efficient with our dollars. But also finding opportunities to work with

1118
02:10:08,769 --> 02:10:08,769
bexar county, with the state and the federal government as well.

1119
02:10:12,902 --> 02:10:12,902
look for grants and funding opportunities that are available to us and pursue

1120
02:10:17,635 --> 02:10:21,135
those in a way that make sense. Maybe we need to redesign certain things so that we're eligible for these programs, these ideas.

1121
02:10:27,702 --> 02:10:27,702
I just think that's an important thing to consider too, as we're looking at

1122
02:10:33,069 --> 02:10:33,069
additional revenues for the city. I believe we are defined by

1123
02:10:37,602 --> 02:10:37,602
our resiliency. I also think that if we are in a position where we do

1124
02:10:46,502 --> 02:10:49,702
reduce programs, just remember we have an opportunity later to bring them back, maybe better than what we have right now, and more effective and

1125
02:10:56,935 --> 02:10:59,935
efficient. Be sure to know that while this is the trying to budget, I am actively working on how we can improve the efficiency and

1126
02:11:05,402 --> 02:11:05,402
stretch our tax dollars, improve efficiencies within our government.

1127
02:11:10,835 --> 02:11:10,835
and this is hard and it should make all of us uncomfortable and concerned

1128
02:11:18,602 --> 02:11:18,602
and worrisome and you should lose sleep at night over it. I know I do.

1129
02:11:25,002 --> 02:11:28,069
I worry about it. That's really all I have to say. Thank you for your hard work. I know it's hard on you too.

1130
02:11:33,835 --> 02:11:33,835
thank you very much. >> mayor jones: thank you. Councilmember kaur.

1131
02:11:39,669 --> 02:11:39,669
>> kaur: thank you, mayor. So as I was mentioning earlier, we are in very

1132
02:11:43,902 --> 02:11:43,902
tough times right now, and having really tough conversations across all of

1133
02:11:49,569 --> 02:11:52,669
our city governments -- city government and governmental entities. So I think it's important to take a minute to understand that no one right now is

1134
02:11:57,169 --> 02:11:57,169
taking this lightly. That we have folks here that work for the city that are

1135
02:12:02,869 --> 02:12:02,869
potentially going to have to find work elsewhere because we have to make budget cuts.

1136
02:12:07,135 --> 02:12:07,135
and just like us having to make budget cuts, we have to do so diligently and make

1137
02:12:12,135 --> 02:12:12,135
sure we know that we are not creating impact on the areas that need it most.

1138
02:12:17,069 --> 02:12:20,269
I know councilmember spears just mentioned some of her areas. I have different areas that I would like to share. But I think what's most

1139
02:12:23,302 --> 02:12:23,302
important from today's conversation to take away is that this is going to be a

1140
02:12:29,102 --> 02:12:29,102
tough summer for all of our entities and we have to make some really tough decisions.

1141
02:12:33,635 --> 02:12:33,635
because I do not think it's fair to just increase all of our rates across everything

1142
02:12:38,702 --> 02:12:41,802
blindly and put all of our problems back on our residents. I think we have to be more judicious and think very strategically about what are

1143
02:12:46,135 --> 02:12:46,135
the services that we absolutely need and how do we make sure we're doing

1144
02:12:50,735 --> 02:12:50,735
justice by them by doing our due diligence. That being said, I want to

1145
02:12:57,069 --> 02:13:00,469
thank city staff for what you guys did in two weeks. I think it's incredible that you were able to go through our $4 billion budget and look through all of the

1146
02:13:07,902 --> 02:13:11,202
places where you felt like at least you could make some recommendations. These are not final but I wanted to commend you because that's definitely

1147
02:13:14,569 --> 02:13:18,402
not easy work. I also think it's important to emphasize that we're not going to be able to adjust budget cut our way out of this so I think we have to

1148
02:13:23,135 --> 02:13:23,135
figure out some type of compromise in this situation.

1149
02:13:27,535 --> 02:13:27,535
as far as slide 4, I wanted to mention -- councilwoman castillo and I, at the

1150
02:13:33,802 --> 02:13:37,735
educational opportunities committee, the youth group actually took this slide and put it in comparison to what the youth felt their priorities were.

1151
02:13:43,135 --> 02:13:46,369
I thought that was a very interesting slide. I would love for the upcoming budget conversations, if we could have that as well so the

1152
02:13:49,435 --> 02:13:49,435
rest of the council that's not on the committee that councilwoman viagran chairs

1153
02:13:54,002 --> 02:13:54,002
can see that. But interestingly enough their priorities for -- like

1154
02:13:59,302 --> 02:13:59,302
homeless services and affordable housing were also their numbers one and two.

1155
02:14:05,102 --> 02:14:08,502
but numbers three through five were different and parks and libraries were some of the top spaces they really wanted. If you think about it, it's

1156
02:14:12,269 --> 02:14:14,735
because they are the most active users of some of those spaces. If you look at this list that has been shared with us, parks and libraries, I

1157
02:14:19,069 --> 02:14:19,069
would like to make sure, when you guys come back, that regardless of what the

1158
02:14:24,602 --> 02:14:27,969
cuts happen, that those programs and services aren't going to be significantly impacted. I do understand there's efficiencies to be had but

1159
02:14:30,735 --> 02:14:30,735
we do have to make sure that the folks using the programs are able to do so well.

1160
02:14:36,102 --> 02:14:36,102
I would like that reassurance. In addition, for the revenue

1161
02:14:41,202 --> 02:14:45,135
increases slide -- I forget which one that is. I do support these revenue increases. I think they're innovative. The one question I wanted

1162
02:14:48,469 --> 02:14:51,769
clarified is for the ems fees. We want to make sure that our most vulnerable aren't affected. Justina, can you comment

1163
02:14:55,169 --> 02:14:55,169
about the ems fees and who that's going to impact. >> it's from either private

1164
02:15:04,535 --> 02:15:07,269
insurance, medicaid, or medicare. For those that don't have insurance, we have the charity care program. >> kaur: great.

1165
02:15:10,169 --> 02:15:14,069
they would still not have to pay the increase? I just wanted to make sure that our most vulnerable are not scared to use ems services because they don't

1166
02:15:18,602 --> 02:15:18,602
have the ability to pay. In addition, I also wanted to share some of the topics

1167
02:15:26,935 --> 02:15:26,935
that I mentioned that I would like more clarity on because I am going to

1168
02:15:31,069 --> 02:15:34,735
provide some of the details of things that were suggested in the cuts. And want to make sure that these ones are heard, specifically.

1169
02:15:38,669 --> 02:15:38,669
catholic college, I think we also heard from the youth, is an amazing resource for

1170
02:15:42,702 --> 02:15:45,835
our kids. They do a lot of great coaching and counseling. I understand there's a ccr that has been put forward about the sponsorships.

1171
02:15:49,702 --> 02:15:49,702
but I would like to see how we can make sure we're deduplicating the

1172
02:15:54,635 --> 02:15:58,235
scholarships, sorry, if there is any. And coming back to us with a recommendation that continues to allow them to support the work that

1173
02:16:02,435 --> 02:16:05,569
they're doing there, because I think it's really important. For historic preservation, I wanted to get some clarity on what that position -- or

1174
02:16:10,702 --> 02:16:13,369
if that would completely remove the culture heritage district. I don't know if you want to answer this now or get back to me.

1175
02:16:15,735 --> 02:16:18,902
you guys can get back to me on that. In addition, I would like some clarity on the nhsd waivers. So city fee waivers, inner

1176
02:16:24,202 --> 02:16:24,202
city incentives, and minor home repair. >> we'll start with the

1177
02:16:31,802 --> 02:16:31,802
minor home repair. As we have been looking at our major and minor rehabs,

1178
02:16:37,002 --> 02:16:40,002
we started partnering with outside agencies, specifically nonprofits. Because of those partnerships, we've been able to stretch our dollars

1179
02:16:42,669 --> 02:16:42,669
further. So we can do the same number of homes with less money.

1180
02:16:48,135 --> 02:16:48,135
>> kaur: so for that one specifically, my ask is to keep it at the same level.

1181
02:16:52,635 --> 02:16:52,635
I would like, in the follow-up when we talk about nhsd's budget in august, to

1182
02:16:57,235 --> 02:16:57,235
see if they could do more homes if they kept at the same budget.

1183
02:17:01,602 --> 02:17:01,602
that's the one thing we know for a minor home repair, if we can keep people in their

1184
02:17:09,635 --> 02:17:13,235
homes, it prevents them from becoming unhoused in the future. What about our inner city incentive? >> in the past couple of

1185
02:17:17,035 --> 02:17:17,035
years we funded mainly affordable housing. So we have done the

1186
02:17:21,135 --> 02:17:25,069
cattleman's square acquisition, a portion of that has come out of the inner city incentive fund. The casita pilot program is funded and other affordable

1187
02:17:30,402 --> 02:17:30,402
housing. For our fee waivers, those waive city fee waivers for

1188
02:17:36,669 --> 02:17:38,769
affordable housing, small business, and industry. >> kaur: okay. I would love if my colleagues had any opinions about that to share, because

1189
02:17:43,102 --> 02:17:47,035
those, I think, are really important for our community. If we can preserve those as well, I would really appreciate it. So I do think, based on what

1190
02:17:50,969 --> 02:17:50,969
you have shared here -- and of course what my colleagues have mentioned, but we saw

1191
02:17:59,469 --> 02:18:02,635
the 50-year employee earlier today, it would break my heart not to give that person a raise for a cost of living increase. Not even a performance raise

1192
02:18:08,335 --> 02:18:08,335
or longevity raise. Absolutely we need to do our cost of living employee

1193
02:18:13,635 --> 02:18:13,635
increases and make sure that everyone at the city, our entire employee population

1194
02:18:18,869 --> 02:18:22,002
understands we value them even though we're going through really tough times, like the conversation we just had. And then the last question

1195
02:18:27,235 --> 02:18:31,202
that I have is for -- I think you said this but I wanted to clarify that the fiesta events would be more cost sharing so that we're shifting over the costs on

1196
02:18:35,802 --> 02:18:39,202
that, right? It's not like we're not going to do them, we're just going to cost share the events? Yeah.

1197
02:18:41,935 --> 02:18:45,135
you can go ahead, erik. >> walsh: I didn't want to interrupt you. >> kaur: that's okay. >> walsh: yeah, we set targets in that trial budget

1198
02:18:49,202 --> 02:18:49,202
that we would recoup 50% of that expense. We have not worked on all of

1199
02:18:53,902 --> 02:18:57,169
that. We're going to be doing that over the next couple of months but that will have an impact on some of the costs of those events, I suspect.

1200
02:19:01,602 --> 02:19:04,869
but we need to work through that and the mayor and I talked a little bit about that in our briefing that it's setting a target and how we get there.

1201
02:19:11,335 --> 02:19:14,702
>> kaur: I do think based on the work you guys have already done -- and I did some loose math for some of those ones that for our district would be the most

1202
02:19:19,102 --> 02:19:23,035
important. That if we just did the unused increment and captured that and not the property tax increase, we could still fund some of the

1203
02:19:29,835 --> 02:19:29,835
programs and affordable housing that are really important to our residents

1204
02:19:34,269 --> 02:19:34,269
while getting a balanced budget. So that would be my feedback

1205
02:19:38,469 --> 02:19:38,469
on that last slide is how do we get to where we need to get to with just our unused

1206
02:19:43,902 --> 02:19:46,702
increment. And let's continue to look through the budget this summer to see where else we might be able to find places that we could have a little

1207
02:19:52,769 --> 02:19:55,969
bit more efficiency in case there are things that come up this summer that folks want to fund to enhance our programs that we are already doing for our community

1208
02:20:01,935 --> 02:20:03,869
members. But again, thank you for your work. I think we've done a lot in two weeks and so I'm excited to come back in august to

1209
02:20:08,902 --> 02:20:08,902
see what y'all come up with. Thanks, mayor. >> mayor jones: thank you.

1210
02:20:19,335 --> 02:20:22,369
councilmember mungia. >> mungia: thank you, mayor. A couple of notes. Can you go to slide 6, please?

1211
02:20:29,735 --> 02:20:29,735
so when it comes to the homesteads on the senior and disabled tax freeze, I

1212
02:20:36,102 --> 02:20:39,235
appreciate us recognizing that and that's something I'll be talking to residents about as a benefit. Doing research, it's about -- I think 47% of the

1213
02:20:44,402 --> 02:20:44,402
city are renters. Unless you are in a rent-restricted property,

1214
02:20:51,569 --> 02:20:51,569
those renters are going to feel the tax increase fully. Probably disproportionately

1215
02:20:58,469 --> 02:21:02,102
so tax increase, they tell the renter the rent is going up next term.

1216
02:21:07,135 --> 02:21:09,902
I do think about half the city. I understand this is a small percentage of folks that will not feel that but it is certainly something to

1217
02:21:13,802 --> 02:21:13,802
consider when we have that many in this city. And if we can go to the

1218
02:21:19,902 --> 02:21:19,902
slide about the fees. I'm not sure which slide that is.

1219
02:21:32,869 --> 02:21:36,802
>> mayor jones: slide 8, please. >> mungia: thank you. I think it's good to look at these. I do -- maria, thank you for

1220
02:21:42,535 --> 02:21:42,535
the presentation we had yesterday. But the ems transport fee,

1221
02:21:47,202 --> 02:21:47,202
that is paid through insurance, is that correct? >> yes.

1222
02:21:56,302 --> 02:21:56,302
it's paid through their private insurance, medicaid, or medicare is the majority.

1223
02:22:01,235 --> 02:22:03,602
>> mungia: what happens when somebody doesn't have insurance? >> we have a charity care program that covers some of that cost.

1224
02:22:06,369 --> 02:22:06,369
>> mungia: does that fund get tapped out every year? >> it's a pool of funding

1225
02:22:12,935 --> 02:22:12,935
that municipalities can apply for. We submit our costs related

1226
02:22:19,702 --> 02:22:19,702
to services that we provide to ems for uninsured or underinsured and we get

1227
02:22:25,635 --> 02:22:27,602
reimbursed for those costs. >> mungia: thank you. Appreciate that. I think when it comes to fees, I had a good conversation with you all

1228
02:22:31,069 --> 02:22:34,869
yesterday and I want to put it out there too. I think there's an opportunity with some of the private towers to get a percentage out of that

1229
02:22:41,135 --> 02:22:41,135
business as well, especially considering their fee is really underserved compared

1230
02:22:46,469 --> 02:22:50,069
to the market. I think if that's a possibility, at least matching the private tower fee to what our contractors are allowed to charge.

1231
02:22:54,369 --> 02:22:58,302
because that is unbalanced right now. So I think if we balance that out and charge 3% or something of that nature. Or I was talking to

1232
02:23:05,502 --> 02:23:08,169
councilwoman castillo, maybe a permit fee attached to that too I think we should really look into that and see what's possible.

1233
02:23:13,169 --> 02:23:13,169
I do understand the fiesta events and kind of cutting back on that.

1234
02:23:18,269 --> 02:23:18,269
but I do just -- recalling the conversation we had at council about keeping some

1235
02:23:23,835 --> 02:23:23,835
events free. So I would like to maybe understand later how that

1236
02:23:28,402 --> 02:23:28,402
impacts events. I know we approved a $5 admission but that was not

1237
02:23:33,002 --> 02:23:36,469
very well received by folks and I think part of that issue for the fee was because of increased costs. We're going to push that cost out again.

1238
02:23:40,202 --> 02:23:40,202
I just worry what that's going to look like. Take a look at that.

1239
02:23:47,135 --> 02:23:47,135
I think these cuts that are identified are definitely very, very difficult.

1240
02:23:52,702 --> 02:23:52,702
I do agree with colleagues that even if we are reducing, it is worth

1241
02:23:57,469 --> 02:23:57,469
looking at at least one 2% for staff cost adjustments because we do have

1242
02:24:05,635 --> 02:24:05,635
inflationary costs in our economy and so I think even a very small percentage is

1243
02:24:10,002 --> 02:24:10,002
something that benefits and helps. I do know that we talked

1244
02:24:16,069 --> 02:24:16,069
about the impact analysis. So we look at those cuts that are going to be made --

1245
02:24:22,269 --> 02:24:22,269
on slide 12 -- without a property tax increase. That is quite staggering,

1246
02:24:29,635 --> 02:24:29,635
especially the debt transfers and the program service level reductions is

1247
02:24:33,935 --> 02:24:37,535
the largest amount that I'm seeing there. I know we're going to do an impact analysis on which districts are going to maybe feel that or which programs

1248
02:24:41,069 --> 02:24:41,069
are active in certain areas of town that those things will now be removed.

1249
02:24:45,669 --> 02:24:45,669
I'll be curious to see what that looks like for district 4.

1250
02:24:50,802 --> 02:24:50,802
because when I go to residents and I ask them, I'm going to ask you to pay

1251
02:24:56,269 --> 02:24:59,869
more and they're going to say what more are we getting? So I say paying more and we're still cutting $20 million.

1252
02:25:03,235 --> 02:25:03,235
they're seeing the services be the same or less. That's a very difficult

1253
02:25:09,369 --> 02:25:09,369
conversation to have. So I think when it comes to a tax increase, we have to

1254
02:25:16,169 --> 02:25:16,169
be really diligent in how we see the equity lens in that process.

1255
02:25:24,669 --> 02:25:28,002
because campaigning, talking to residents all the time, they just feel like these services are not there. I can talk to them, make the conversation, the argument

1256
02:25:31,369 --> 02:25:35,202
that without a tax increase it will be worse. But again, when they're asking to be paying more, they expect more. And I can't just say it's

1257
02:25:38,469 --> 02:25:41,502
just an inflation cost. It's going to be the same thing. That's a very difficult thing that we'll have to explain to folks.

1258
02:25:45,435 --> 02:25:45,435
in addition to what some other council members said, alamo colleges is looking at

1259
02:25:51,602 --> 02:25:51,602
their tax increase. Counci welcome maybe if we look at some of the other

1260
02:26:02,269 --> 02:26:04,969
entities evaluating those so we can get a better picture of what's going to happen. You know, we look at things and say the city's tax increase is going to be $5

1261
02:26:12,469 --> 02:26:12,469
every month. The saws increase, that's going to be $3 every month.

1262
02:26:17,569 --> 02:26:17,569
all these things start to add up on the other taxing entities and fees that we're

1263
02:26:22,369 --> 02:26:22,369
charging more for. The larger picture in one fiscal year may not be the

1264
02:26:26,902 --> 02:26:26,902
$5, it may be $20 a month for folks. I think that analysis will

1265
02:26:31,802 --> 02:26:31,802
help us educate ourselves on what we're contributing to tax increases in general.

1266
02:26:43,869 --> 02:26:47,002
those are conversations I'll be having with my residents and we're going to have a town hall with folks too and I look forward to that analysis but those are

1267
02:26:51,569 --> 02:26:54,069
things that are certainly top of mind for me. >> walsh: thanks, councilman. You know, great conversation so far.

1268
02:26:57,302 --> 02:26:57,302
let me reiterate that we are going to have to reduce our expenses and it will have

1269
02:27:05,735 --> 02:27:05,735
impacts. And my primary responsibility is to make

1270
02:27:10,469 --> 02:27:10,469
sure that I deliver to you all the budget for the city of san antonio.

1271
02:27:14,969 --> 02:27:14,969
so while other public entities may be going through something similar

1272
02:27:19,335 --> 02:27:19,335
and there's a broader impact, we're not going to do that work over the

1273
02:27:23,535 --> 02:27:25,835
summer. We will show you kind of where they land. But that's not my focus and it won't be my focus as I deliver the budget to you

1274
02:27:29,635 --> 02:27:29,635
all. I understand that that's a bigger issue going on with

1275
02:27:35,102 --> 02:27:37,435
taxable values within the county and everybody is being impacted. But I also don't want you all to think that that is a consideration, a financial

1276
02:27:44,235 --> 02:27:48,102
consideration as we deal with our employees, our services, and our budget. Because it's not going to be. And I just don't want any

1277
02:27:52,802 --> 02:27:52,802
misconceptions. But happy to make sure that as we deliver the proposed

1278
02:27:57,069 --> 02:27:57,069
budget and incorporate for you what other entities are doing, we can do that

1279
02:28:02,002 --> 02:28:05,235
easily. I just don't want it to be misconstrued what you're asking for. >> mungia: absolutely. Thank you for clarifying

1280
02:28:08,702 --> 02:28:12,235
because that's exactly what I mean. I think it's prudent for us to acknowledge other things happening around us. That's not our focus.

1281
02:28:14,802 --> 02:28:18,535
that's not things that we're voting on but these are things that are affecting community members. And we're asking them to pay more.

1282
02:28:21,502 --> 02:28:21,502
again, we're looking at it as our tax increase is going to be this amount of money

1283
02:28:26,535 --> 02:28:30,369
per resident per month per year. I have a duty to look at the bigger picture for residents also. I completely understand that

1284
02:28:35,169 --> 02:28:38,269
doesn't affect what we're doing here. We have our own budget issues and staff we need to take care of and our services but it's a larger

1285
02:28:42,302 --> 02:28:42,302
picture that should be identified. If that's disproportionately

1286
02:28:47,435 --> 02:28:50,702
affecting other parts of town. Not every district is talking about a tax increase. It's important to know the

1287
02:28:55,969 --> 02:28:58,469
geographic where folks are getting bigger hits . Thank you for that. >> mayor jones: thank you. Councilmember castillo. >> castillo: thank you.

1288
02:29:07,569 --> 02:29:10,669
thank you, freddie for the presentation as well as the budget team. This is something I have been taking out to neighneighborhood associations o

1289
02:29:16,902 --> 02:29:19,802
engage community and a constituent asked me what is your position on this? And I shared with him, yes, it is a tough conversation but the obligation is very

1290
02:29:25,402 --> 02:29:28,802
clear that the city of san antonio and council has a responsibility to ensure that we continue to maintain city services and have stability in terms of

1291
02:29:35,335 --> 02:29:38,969
operational stability. And what that looks like is ensuring that, one, we continue to do our due diligence as we navigate this conversation.

1292
02:29:42,935 --> 02:29:42,935
but what's also key and very important for district 5 residents is that folks want

1293
02:29:49,102 --> 02:29:49,102
to continue to see las palmas, bazan library, collins garden fully staffed

1294
02:29:55,869 --> 02:29:59,369
they want to continue to see full programming within parks and our community centers. They want to continue to see and have access to healthy

1295
02:30:02,869 --> 02:30:02,869
neighborhood programming and healthy food access. Within las hardinas we have

1296
02:30:14,135 --> 02:30:14,135
a pomodoro so how can we be strategic and intentional. But also highlighting how

1297
02:30:22,835 --> 02:30:22,835
none of the work gets done without city employees and work in the field.

1298
02:30:27,002 --> 02:30:27,002
that's why I'm uncomfortable with any recommendation to pause a cost-of-living

1299
02:30:31,202 --> 02:30:32,602
adjustment. While I appreciate the potential fee adjustments, looking at the two-year total, that's $21.9 million. I do believe there's

1300
02:30:39,569 --> 02:30:39,569
opportunity to explore additional ways to continue to -- again to reiterate,

1301
02:30:45,402 --> 02:30:45,402
during the

1302
02:30:52,635 --> 02:30:56,335
housing instability for long-term rentals for san antonio residents that may result in us needing to increase relocation services, et cetera, and so

1303
02:31:00,502 --> 02:31:00,502
forth. I believe there's opportunity for us to

1304
02:31:09,002 --> 02:31:09,002
explore short-term rental fees and how we can have a cost recovery structure and

1305
02:31:14,769 --> 02:31:14,769
increasing for vacant and nuisance properties? Again, how can we ensure

1306
02:31:19,635 --> 02:31:19,635
that we're tackling these vacant and nuisance properties that serve as a

1307
02:31:25,469 --> 02:31:25,469
host of issues from public safety, overgrown vegetation, so on and so

1308
02:31:29,502 --> 02:31:29,502
forth. In addition to that, I highlight the total cost

1309
02:31:37,969 --> 02:31:37,969
recovery adjustment totaling $21.9 million. If we look at the

1310
02:31:42,335 --> 02:31:43,769
compensation for the cost-of-living adjustment for employees over two years, that's going to be $24 million. If I'm going to say I want

1311
02:31:48,135 --> 02:31:50,702
to support a cost-of-living adjustment, I'm going to have to do my due diligence to find other ways to help support us get to that cost-of-living adjustment.

1312
02:31:54,702 --> 02:31:58,669
and with the current cost recovery potential adjustments that doesn't get us there. Again, I just wanted to run through some of the

1313
02:32:03,469 --> 02:32:03,469
non-negotiables for district 5 residents that we should continue to maintain.

1314
02:32:08,169 --> 02:32:08,169
I understand we're in this tight conversation but my district 5 residents expect

1315
02:32:12,435 --> 02:32:12,435
that we continue to invest in community nutrition, community health and

1316
02:32:17,469 --> 02:32:21,269
improvement plans, healthy neighborhood plans. Again, the neighborhood association where they asked me straightforward, what is your position?

1317
02:32:25,102 --> 02:32:25,102
they shared that there's so many community resources that we do not want to see

1318
02:32:30,169 --> 02:32:34,169
reduced. In addition to human resources, we have to continue to support city employees with tuition reimbursement.

1319
02:32:38,769 --> 02:32:38,769
that's what makes the city of san antonio such a great organization that folks want

1320
02:32:44,702 --> 02:32:44,702
to work for up to 50 years and tuition reimbursement is something we should

1321
02:32:51,169 --> 02:32:53,535
continue. Of course supporting our part-time nutrition centers. As I mentioned, our libraries are just core tofully civilization

1322
02:33:01,069 --> 02:33:01,069
institution, and especially in district 5 where where of our isds are facing school

1323
02:33:13,135 --> 02:33:16,669
closures. At rodriguez elementary we have had parents come and meet with us to say how can we better partner with the las palmas library because

1324
02:33:23,535 --> 02:33:27,402
they no longer have a librarian in their school. I want to make sure we're supporting our library staff so they can support our students that are

1325
02:33:32,102 --> 02:33:32,102
experiencing an absence of librarians in their schools. Ensuring that our libraries

1326
02:33:41,735 --> 02:33:41,735
are fully staffed is a priority.

1327
02:33:50,002 --> 02:33:52,069
city incentives have helped produce deeply affordable housing projects that are tax credit properties. That means they are rent stabilized for the duration

1328
02:33:57,769 --> 02:34:00,935
of that tax credit. I would like to see that resource protected to ensure we can continue to produce more affordable housing. Again, my district 5

1329
02:34:08,602 --> 02:34:10,135
residents really value parks and rec and their programming. Ensuring that the centralized programming is continued to be protected is

1330
02:34:14,702 --> 02:34:14,702
something that we'd like to see. I appreciate the

1331
02:34:19,435 --> 02:34:19,435
conversations about public works and the ways in which we could potentially shift

1332
02:34:23,835 --> 02:34:23,835
that to capital improvements. Again, any reductions to

1333
02:34:30,735 --> 02:34:33,935
street, lights, crosswalks, so on and so forth is not something my constituents would be comfortable with. I do think in part of the budget conversations, I

1334
02:34:38,835 --> 02:34:38,835
think having within that presentation that if we do not explore a scenario in

1335
02:34:43,035 --> 02:34:46,469
which property taxes are increased, we would potentially -- not potentially -- we would see a reduction in flashing speed signs, radar

1336
02:34:51,602 --> 02:34:55,302
detectors. Many of those things that we are receiving requests at every neighborhood association I get a request for a stop sign or a radar

1337
02:34:59,235 --> 02:34:59,235
detector. I think having that list of failing to consider any

1338
02:35:03,735 --> 02:35:03,735
scenario would mean less in our streets. So again, same thing with

1339
02:35:08,535 --> 02:35:08,535
pavement markings. Not exploring a property tax increase can mean -- will

1340
02:35:13,335 --> 02:35:13,335
mean less pavement markings is something that our residents deserve to hear.

1341
02:35:17,802 --> 02:35:17,802
but of course as we navigate these times, that we continue to support

1342
02:35:26,369 --> 02:35:30,069
sustainability. Which ties back for a potential fee adjustment within our neighborhood associations their expectations are with auto

1343
02:35:34,469 --> 02:35:34,469
and metal recyclers. How can we explore more accountability in what those

1344
02:35:39,569 --> 02:35:39,569
fees would look like. I would like to consider what is feasible in terms of

1345
02:35:44,702 --> 02:35:44,702
increasing that fee for auto metal recyclers. Austerity is not a realistic

1346
02:35:51,902 --> 02:35:51,902
budget plan when coming up with priorities, particularly in an

1347
02:35:56,202 --> 02:35:57,735
economically-segregated city. Those are all my comments. Thank you. >> mayor jones: councilmember

1348
02:36:03,969 --> 02:36:05,635
mckee-rodriguez. >> mckee-rodriguez: thank you, mayor. Thank y'all for the presentation. As I typically say about

1349
02:36:09,102 --> 02:36:12,302
this topic, this is a pretty bleak outlook and I appreciate the work staff has done to provide us options that we have asked for, especially what it

1350
02:36:15,502 --> 02:36:19,402
would look like to cut programs, department, and staff to balance the budget versus what would it look like to implement a rate increase and what the fee

1351
02:36:25,135 --> 02:36:25,135
adjustments could mitigate both of those. I want to convey something

1352
02:36:30,502 --> 02:36:34,502
simple. If our revenues remained the same and every department stayed the same, the police and fire budget would grow because it is mandated by

1353
02:36:41,402 --> 02:36:41,402
our collective bargaining agreement, even without new positions.

1354
02:36:46,102 --> 02:36:46,102
we would need to every year that the

1355
02:36:50,802 --> 02:36:53,769
cut the departmental budgets. As time goes on, the police and fire department would grow even without any new positions added.

1356
02:36:57,635 --> 02:36:57,635
and we would be cutting more positions every year. And so I want to make that

1357
02:37:03,035 --> 02:37:03,035
point. I'm circle back to that. To councilwoman spears'

1358
02:37:08,102 --> 02:37:10,502
point regarding the shootings that you identified in your district. I want to pose the question respectfully and with all seriously, because I want us

1359
02:37:15,235 --> 02:37:19,002
to find a shared understanding. I have this conversation frequently in my district. I would ask what role do we expect the officers to play

1360
02:37:23,402 --> 02:37:26,202
in a shooting? Was their response inadequate? Do we need more officers because we know shootings will happen and their

1361
02:37:29,635 --> 02:37:32,202
response just didn't strong enough? We want to be faster? Is that the reason? Is that the purpose? Is there some way to be

1362
02:37:35,402 --> 02:37:35,402
strategic there? Or do you believe that if we hired more police officers,

1363
02:37:41,135 --> 02:37:41,135
the shooting

1364
02:37:45,369 --> 02:37:45,369
not going to retaliate because the city hired 60 more officers?

1365
02:37:49,435 --> 02:37:49,435
or would the shooting have happened anyway? I believe when we have this

1366
02:37:54,902 --> 02:37:54,902
conversation, we constantly say, oh, there's a shooting. We need more police.

1367
02:37:59,269 --> 02:37:59,269
we are placing an unrealistic expectation on the police department and

1368
02:38:05,069 --> 02:38:05,069
it's to our detriment, their detriment, and our constituents' detriment.

1369
02:38:18,102 --> 02:38:18,102
if we want to respond to them, maybe that is the answer.

1370
02:38:23,902 --> 02:38:27,769
if we want to prevent the shooting to be happening, we are going to be taking steps that deeply impact our ability to do that. We cannot expect police to

1371
02:38:32,135 --> 02:38:35,969
exist on every corner where conflict is occurring and just so happened to be in the place where a shooting the going to occur. We need to address the root

1372
02:38:40,302 --> 02:38:43,869
causes and unfortunately the root causes of crime can only be addressed by the very programs and social services that we would cut here.

1373
02:38:47,369 --> 02:38:47,369
the safest cities in the world do not focus a third of their investments in

1374
02:38:52,335 --> 02:38:52,335
policing and in military. They invest in healthcare, housing, transportation,

1375
02:38:58,302 --> 02:38:58,302
education, and overall community well-being. And the cuts to the

1376
02:39:08,302 --> 02:39:08,302
departments are a band-aid and it won't get us out of our deficit.

1377
02:39:12,669 --> 02:39:16,135
it is not going to improve our standing structurally. Police and fire are the departments that we're all most sensitive to. No one wants to say, oh, we

1378
02:39:20,669 --> 02:39:20,669
understand the services that you are providing and we understand that your

1379
02:39:25,102 --> 02:39:25,102
departments do a lot with sometimes not enough. And so what I would ask is

1380
02:39:31,902 --> 02:39:31,902
that we look into an independent comprehensive analysis of both fire and

1381
02:39:38,369 --> 02:39:38,369
police to identify efficiencies and identify areas, both cba mandated and

1382
02:39:42,969 --> 02:39:46,835
non-cba mandated that we could identify savings in that would not impact their services, not impact the resources they have. You can't tell me that

1383
02:39:52,569 --> 02:39:52,569
within 600, $700 million we can't find some amount of savings -- we can't find 5,

1384
02:40:01,769 --> 02:40:05,135
10, $15 million that could potentially go to hiring more police, more fire. We need that task. I think it needs to be done independently and I would

1385
02:40:08,602 --> 02:40:08,602
ask that we do that as quickly as possible so we can then identify some of

1386
02:40:13,102 --> 02:40:13,102
those cba-mandated areas. We can incorporate those into topics of discussion in

1387
02:40:18,602 --> 02:40:18,602
our future cba discussions. And with what you've laid out today, with no rate

1388
02:40:24,002 --> 02:40:27,702
increase we're looking at a loss of over 200 jobs. That is a pretty significant portion of the jobs that we're looking to create with one of our economic

1389
02:40:30,635 --> 02:40:33,569
incentives. I'm not comfortable with that. 200 positions that we're cutting here and we're going to be looking to make up by

1390
02:40:37,869 --> 02:40:37,869
abating taxes for another corporation somewhere down the line.

1391
02:40:42,169 --> 02:40:42,169
with over 132 of those being filled, that's 132 households losing income,

1392
02:40:47,835 --> 02:40:47,835
losing benefits and access to healthcare. So those of you who are

1393
02:40:53,102 --> 02:40:53,102
comfortable with cuts that have been identified and the departments who are losing

1394
02:40:57,535 --> 02:40:59,635
resources and those positions, they are going to be fired. They are going to lose their income. Some of them are the only

1395
02:41:02,635 --> 02:41:02,635
people in their household with an income. And so that's 132 families

1396
02:41:06,669 --> 02:41:10,202
wondering what's next and how they're going to get their next meal. 132 families at risk of homelessness. And that is above all what I

1397
02:41:13,802 --> 02:41:13,802
want to protect in all of this. We have to look out for our

1398
02:41:19,302 --> 02:41:23,135
employees. Every time we acknowledge the work they put in and the fact that they make our city run, it would all be a lie if we are willing to cut

1399
02:41:28,869 --> 02:41:28,869
their positions. For that reason, we can't afford to cut any filled

1400
02:41:33,335 --> 02:41:33,335
positions, at the minimum. All eyes will be on our employees to do more with

1401
02:41:38,335 --> 02:41:42,035
less so they do deserve that cost-of-living adjustment and we need to make sure we can deliver on that. I'm also concerned about what these cuts mean for our

1402
02:41:46,602 --> 02:41:50,302
service levels. There are certain people that may find very little value in certain departments and programs but it's largely because they don't

1403
02:41:53,935 --> 02:41:53,935
need them. But you cut parks programming, you cut housing

1404
02:41:58,769 --> 02:42:02,369
programs, you cut library services, you cut services that prevent people from becoming homeless and we're looking at detrimental community outcomes,

1405
02:42:08,335 --> 02:42:08,335
including increased poverty, lower educational attainment, poor health

1406
02:42:13,035 --> 02:42:16,769
outcomes, increased crime, increased homelessness and increased need for the very services that are facing cuts today. And then you'll ask for more

1407
02:42:20,069 --> 02:42:20,069
police officers to respond to all of those outcomes. So there are going to be

1408
02:42:26,735 --> 02:42:29,502
difficult decisions made this year and a lot of difficult conversations in our districts. I would like to know -- this is information that I'm

1409
02:42:34,469 --> 02:42:34,469
requesting -- what is the average property tax bill impact per district?

1410
02:42:38,902 --> 02:42:38,902
what's the dollar amount each district can expect, on average, the homeowner's

1411
02:42:44,669 --> 02:42:48,235
bill will be rising? This one is going to be a little bit more time consuming. If we can get reports from the departments being

1412
02:42:51,402 --> 02:42:51,402
considered for cuts, I would like to know the programs and services utilized by my

1413
02:42:55,502 --> 02:42:57,935
district. I'm sure that would be beneficial to my colleagues as well to know what is the fairest trade-off? If your bill is going to go

1414
02:43:05,135 --> 02:43:05,135
up 30 to $40 or 50 to $60 is that worth knowing that the programs that our district

1415
02:43:11,869 --> 02:43:11,869
utilizes the most and the impact in service levels can continue, is that trade-off

1416
02:43:20,835 --> 02:43:23,735
worthwhile? I want to have that conversation at our town hall. Somewhere between now and then, that would be really

1417
02:43:26,969 --> 02:43:30,702
helpful. Someone brought this up earlier but can we find out how many property tax bills are frozen by district? Because people do want to

1418
02:43:34,902 --> 02:43:38,535
know when we talk about a property tax increase, one of the first things you hear is what about seniors on a fixed income? Being able to communicate to

1419
02:43:42,435 --> 02:43:46,402
them, hey, we have this property tax freeze for seniors and people with disabilities, this is the number of people, this is how they get access to this.

1420
02:43:49,869 --> 02:43:49,869
this is how they qualify. So that will also help people be a little bit more

1421
02:43:55,669 --> 02:43:58,169
comfortable if they're unaware that that takes place. You can rest assured that those seniors you want to protect, that they're not

1422
02:44:04,069 --> 02:44:07,169
going to be impacted by this. Overall, there is an incongruence with the expectations that we and our constituents have of city

1423
02:44:12,569 --> 02:44:16,069
services with the outlook should we make these cuts. We're going to have to navigate those alongside our constituents because we will not get better services with

1424
02:44:20,302 --> 02:44:20,302
less resources. To make it easier, I'll lay out a concern I hear and

1425
02:44:24,969 --> 02:44:28,202
it's that services on the east side -- I imagine on the south and west side -- there's a belief that those services are not up to par with the services on the

1426
02:44:31,835 --> 02:44:31,835
north side in districts 8, 9, and 10. You drive past city parks on

1427
02:44:37,069 --> 02:44:40,835
the north side and they're never unmowed. Code enforcement isn't slow or unresponsive. Folk up there are okay with cutting departments because

1428
02:44:44,935 --> 02:44:44,935
they have never experienced lackluster service or unequal services that have

1429
02:44:50,169 --> 02:44:52,802
been inequitable. Regardless of whether or not that's true, that's the perception. And so if there is any reality to that, there is

1430
02:44:56,269 --> 02:44:56,269
any truth to that, we need to identify how we can make these cuts as equitable as

1431
02:45:01,469 --> 02:45:01,469
possible in nature. I have heard that said a few times said up here.

1432
02:45:05,835 --> 02:45:05,835
residents in districts with the greatest need need to have improved services and

1433
02:45:10,269 --> 02:45:10,269
you balance that with cuts to services where they aren't needed.

1434
02:45:15,202 --> 02:45:15,202
rather than a departmental programmatic-based cut system, maybe it's over here

1435
02:45:20,635 --> 02:45:24,435
this is the level of service we're going to provide and try to make better. Over here, if the services aren't as needed, we're not going to offer them to the

1436
02:45:28,569 --> 02:45:32,469
level we have been. There's got to be a balance there. Overall, thank you so much. This is a lot of staff in the audience.

1437
02:45:34,835 --> 02:45:34,835
you are all appreciated. Hopefully none of y'all are one of the 132 positions

1438
02:45:40,035 --> 02:45:40,035
that are up for grabs. Know that I'm here for you and hopefully my colleagues

1439
02:45:45,969 --> 02:45:45,969
will agree. Thank you, mayor. >> mayor jones: thank you.

1440
02:45:50,935 --> 02:45:54,469
councilman galvan. >> galvan: thank you for the presentation and all the staff who have been working on this and will continue to do that difficult work over

1441
02:45:59,202 --> 02:45:59,202
te next months. I think when we talk about the tax part of this

1442
02:46:06,235 --> 02:46:06,235
conversation, I think it's critical for the public to understand too and for us to

1443
02:46:10,535 --> 02:46:10,535
understand where we're at with this is we are structurally limited here at

1444
02:46:15,602 --> 02:46:15,602
the local government level on what kind of taxes we can raise, what kind of fees we

1445
02:46:19,735 --> 02:46:19,735
can raise compared to other cities across the country. There's a different view

1446
02:46:24,935 --> 02:46:24,935
here in our state capital about how we can function, what kind of revenue we can

1447
02:46:29,769 --> 02:46:33,102
raise, who we can raise it from. Some of the things we are looking at, the property tax increase is one of the only ways we have to raise

1448
02:46:37,835 --> 02:46:37,835
revenue, and even then it's capped. The conversation as to other

1449
02:46:44,669 --> 02:46:44,669
ways we can get this revenue and it's somewhat but very little to no other way.

1450
02:46:50,069 --> 02:46:54,002
we talk about how can we make sure our city has the best quality of services possible, this is the primary source. When you see development and

1451
02:46:57,902 --> 02:47:00,902
things change, this is the primary source of revenue we can get here. It's a tough one because we all have to pitch in for it and it's understanding what

1452
02:47:06,469 --> 02:47:06,469
we get out of it is the most critical point. If we're going to pay for

1453
02:47:10,802 --> 02:47:10,802
more, how to make sure that we're getting more and going to see more robust services.

1454
02:47:15,335 --> 02:47:15,335
there's a lot of need out there and so I want to make sure -- in the last budget

1455
02:47:21,802 --> 02:47:21,802
presentation, I believe the cost estimate for the median homestead was $70 a year.

1456
02:47:27,169 --> 02:47:27,169
is that accurate? >> with both the increment as well as the 3.5%, it's

1457
02:47:38,769 --> 02:47:38,769
about $81 per year for the average homestead. >> galvan: but not the

1458
02:47:43,835 --> 02:47:43,835
median? >> for the median -- I have that.

1459
02:47:48,469 --> 02:47:48,469
for the median, it was 70. >> galvan: I would appreciate what

1460
02:48:00,069 --> 02:48:00,069
councilmember mckee-rodriguez laid out. We can go on with our

1461
02:48:06,135 --> 02:48:06,135
community, getting some information from city staff, branded material we can

1462
02:48:13,469 --> 02:48:13,469
here. Nothing is set in stone but this is what we're debating

1463
02:48:18,635 --> 02:48:18,635
overall, I think I prefer to see minimal staff reductions as possible.

1464
02:48:23,602 --> 02:48:23,602
and looking into ways we can adjust any kind of unnecessary spending as much

1465
02:48:28,735 --> 02:48:28,735
as possible. I appreciate the look at some of the food and travel,

1466
02:48:35,035 --> 02:48:35,035
some of the branded merchandise we have here. Even if it's minimal, if

1467
02:48:40,002 --> 02:48:40,002
we're talking about $100,000, even $80,000, in that range for the total

1468
02:48:44,269 --> 02:48:48,069
city, I would rather look at that versus looking at an entire program being cut off because that's the same amount. Some of the programs we have

1469
02:48:51,102 --> 02:48:54,102
listed are only in the $100,000 range. Some of them even less. I would like to see how we can reduce those costs in other places.

1470
02:48:57,802 --> 02:48:57,802
I mean, if it's -- it's not going to be practical, there's always going to be

1471
02:49:02,202 --> 02:49:02,202
limits but if it's just cutting pens and pencils, I would rather look at all the

1472
02:49:09,135 --> 02:49:12,269
options available. We don't want to make our services any less than they have to be so I prefer to look at that. For myself, I'm supportive

1473
02:49:19,169 --> 02:49:19,169
of looking at the incremented rate and seeing where we can get to that

1474
02:49:24,169 --> 02:49:24,169
point. If we can protect our education programs, health

1475
02:49:29,435 --> 02:49:29,435
programs, parks as much as possible, that's my goal. If we look at efficiencies,

1476
02:49:34,302 --> 02:49:34,302
let's go forward with the efficiency part of it within those departments but what I

1477
02:49:38,735 --> 02:49:38,735
want to make sure that we're ddoing is the community impact that's going to have.

1478
02:49:46,902 --> 02:49:46,902
in district 6 we have a mixed bag of a district. There's some folks that have

1479
02:49:51,335 --> 02:49:51,335
the largest hoa in the entire city, the second largest in the state in my

1480
02:49:57,269 --> 02:49:59,935
district. Other neighborhoods do not have that. There are no community centers, no pools. There are no large parks

1481
02:50:03,669 --> 02:50:03,669
that people can participate at without driving to. Even further out of the

1482
02:50:07,702 --> 02:50:10,869
neighborhood. There are a lot of places that do not have these amenities. No libraries, et cetera. And so just a matter of

1483
02:50:13,802 --> 02:50:17,535
making sure that as we're looking at scaling any program down in any form, looking at the impact it has to the community on educational achievement in

1484
02:50:21,402 --> 02:50:21,402
the area, health disparities, income, and access to those same

1485
02:50:25,435 --> 02:50:25,435
services. I've talked a lot to melody and the team at dhs about

1486
02:50:31,035 --> 02:50:35,002
the nutrition centers. I have one in my district that's critical to that community because it's not only a part-time nutrition center they have had for a

1487
02:50:40,269 --> 02:50:40,269
long time, but it's also one, there is nothing else in the area.

1488
02:50:45,769 --> 02:50:45,769
there is no senior center. Yes, we can make sure people get transported over to a

1489
02:50:51,569 --> 02:50:51,569
comprehensive senior center, it's a different thing to talk to a community to say

1490
02:50:56,069 --> 02:50:56,069
there is nothing near you that you are connected to, you have to go outside 410

1491
02:51:01,835 --> 02:51:01,835
to get to one or go several miles away. Figuring out how we can plan

1492
02:51:06,435 --> 02:51:10,335
for that a little bit and how can we make sure those folks are not left without something is critical to me. Finding ways to preserve those centers is really

1493
02:51:14,802 --> 02:51:14,802
critical until we get to -- I prefer comprehensive senior centers in those

1494
02:51:19,402 --> 02:51:23,069
areas. Otherwise, I think it's the same story that councilmember mckee-rodriguez laid out about this side of town is

1495
02:51:25,602 --> 02:51:28,002
not going to get that service. If we're going to scale down somewhere else, I think we go to somewhere where there's similar services.

1496
02:51:34,169 --> 02:51:34,169
if there is an hoa nearby that can provide those services, let them do that.

1497
02:51:39,735 --> 02:51:39,735
let's get to the places that rely solely on the public to do that work, I think we

1498
02:51:44,369 --> 02:51:44,369
have to figure that one out. And public works, you know, I want to preserve as much

1499
02:51:48,869 --> 02:51:51,602
there as possible, of course. I think if we can get some kind of analysis about what the current maintenance needs are, whether it's for

1500
02:51:57,402 --> 02:52:00,202
striping -- some of the minimal work we do -- and see where those timelines are at. That's critical too. What I don't want to see is

1501
02:52:03,235 --> 02:52:03,235
areas that have not seen is that sidewalk, that stop sign, maintenance on the

1502
02:52:08,435 --> 02:52:11,269
crosswalk, et cetera for I don't know how many years, but for a significant amount of time, I don't want them to get deferred even more. I would rather those be

1503
02:52:16,435 --> 02:52:20,035
addressed and the ones doing okay, let them continue to do okay. I know we're working on making sure all of our sidewalks are ada compliant

1504
02:52:33,435 --> 02:52:36,735
just being able to see that within these recommendations are going to be critical too, I believe. The fees make sense on slide 8.

1505
02:52:41,535 --> 02:52:41,535
I think for slide 12, I know a lot of it is what are we doing without the increase.

1506
02:52:46,769 --> 02:52:46,769
I want to see a mixture there. What things can we still do

1507
02:52:50,969 --> 02:52:50,969
in the reductions, whether it's the vacant positions or the comprehensive budget

1508
02:52:57,069 --> 02:52:57,069
reviews. But of course understanding that we're still going to

1509
02:53:01,502 --> 02:53:01,502
need that support for the increase. Seeing what impact that

1510
02:53:06,335 --> 02:53:06,335
would have to our property tax request to our residents --e city would be helpful .

1511
02:53:12,369 --> 02:53:16,102
if it goes down in any way, would be interested in seeing that. If not, understandable but would like to see that laid out in front of us.

1512
02:53:19,602 --> 02:53:19,602
again, I want to reiterate my support for continuing that cola adjustment for

1513
02:53:28,269 --> 02:53:28,269
staff. We've got to make sure folks are able to afford the daily

1514
02:53:36,002 --> 02:53:38,902
life . I think those are all the big things. I mentioned the stuff around the non-informational merchandise through city

1515
02:53:45,535 --> 02:53:48,202
departments, including I would say our own city council office as much as possible. I get it. We all have our ways to

1516
02:53:51,469 --> 02:53:55,435
communicate to our residents but I would rather reduce that stuff, whether it's food and travel budgets, et cetera, before I start cutting staff anywhere else.

1517
02:53:58,902 --> 02:53:58,902
thank you, mayor. >> mayor jones: thank you. On to the second round.

1518
02:54:06,402 --> 02:54:06,402
councilwoman viagran. >> viagran: thank you. A lot of good conversation,

1519
02:54:11,102 --> 02:54:13,835
information. Some things that I don't think they're addressing quite what you asked us to address, in some cases. So I am just going to kind

1520
02:54:19,735 --> 02:54:19,735
of go through things. I appreciate councilman galvan talking about the

1521
02:54:24,335 --> 02:54:27,202
resource. The reason this is easy for me to say we need to raise the rate is because that is the property tax that we have.

1522
02:54:30,535 --> 02:54:30,535
unless jeff comes and tells me the state is looking at a state income tax, this is

1523
02:54:35,669 --> 02:54:35,669
our resource, property tax. I don't think the state is thinking that but I could be

1524
02:54:39,902 --> 02:54:39,902
wrong. We'll talk about that in legislative session.

1525
02:54:44,569 --> 02:54:44,569
in terms of city council responsibilities, erik, I appreciate you staying laser

1526
02:54:52,235 --> 02:54:52,235
focused on our budget. And while we do have a lot of taxing entities within

1527
02:54:58,702 --> 02:55:02,235
bexar county, in my district alone, I have four school districts. So I do not want you -- thank you, city staff for being here -- having my city

1528
02:55:11,902 --> 02:55:11,902
staff spend time looking at other people's tax increases

1529
02:55:17,202 --> 02:55:17,202
some significant answers to say, yes, we're moving forward with this 6% or this

1530
02:55:21,935 --> 02:55:21,935
median income so then we can send a letter. Me to my school districts

1531
02:55:26,735 --> 02:55:26,735
and school boards who are all elected officials also, and the alamo community

1532
02:55:31,969 --> 02:55:35,935
college saying we just raised property tax. We just have done this to make our budget. Please be considerate as your board decides what to

1533
02:55:41,535 --> 02:55:44,169
do next. We as a city need to lead on that. I appreciate you saying that. When it comes to public

1534
02:55:47,435 --> 02:55:51,402
safety, this is why I have the to level set on there. I don't think we should spend more time on looking at do we need more officers. One, we're in the middle of

1535
02:55:58,335 --> 02:55:58,335
a budget negotiation. I think we need to stick there, focus on that.

1536
02:56:05,102 --> 02:56:05,102
the other is I don't think -- unless pd has come knocking at your door, we

1537
02:56:10,302 --> 02:56:10,302
are in the transition of leadership, currently, and I think we need to get that

1538
02:56:17,869 --> 02:56:21,135
set before here's another 50 officers, decide what you want to do. And we barely have any substations or the substation toilet at east is

1539
02:56:26,135 --> 02:56:26,135
broken. So I really want to make sure that we're thoughtful

1540
02:56:31,435 --> 02:56:34,835
about that. But the one thing that councilman mckee-rodriguez brought up is key. I would love to see if we could work with our

1541
02:56:40,369 --> 02:56:40,369
stakeholders to see how much law enforcement do we actually have in bexar

1542
02:56:46,002 --> 02:56:49,602
county? If we think about it and we think about school police, alamo college has law enforcement. Our smaller municipalities,

1543
02:56:57,135 --> 02:56:57,135
aacog. When we're looking to move forward in hiring, maybe --

1544
02:57:03,135 --> 02:57:03,135
the constables, the bexar county sheriffs. There's just a lot of law

1545
02:57:07,169 --> 02:57:07,169
enforcement out there. And maybe what we need is when we get -- not new

1546
02:57:15,735 --> 02:57:19,669
officers, but better coordination between our law enforcement agencies. And maybe as we go out there and we look for a new chief, we let that new chief of

1547
02:57:27,302 --> 02:57:27,302
police understand. These are the amount of law enforcement entities out

1548
02:57:32,869 --> 02:57:32,869
there. How do we manage it and how do we address calls and

1549
02:57:38,635 --> 02:57:38,635
information. And we just made the park rangers at the missions, we

1550
02:57:44,669 --> 02:57:47,769
got that from the state of texas so that they can arrest and detain. So I think that's really important before we have these larger conversations

1551
02:57:54,069 --> 02:57:54,069
about I'm going to cut a whole department so that I can bring on 40 new officers

1552
02:58:00,635 --> 02:58:03,635
that we may or may not need, because the constable can do that job. I think we need to look at that before we have that conversation.

1553
02:58:11,035 --> 02:58:14,702
I will be around this summer. Erik, the team, and maria -- and justina knows already. You are surely going to hear from me when we talk about

1554
02:58:20,335 --> 02:58:24,035
this reorganization. Because all I heard was equity lens this, animal cequitylens that. That is important but if that department goes away

1555
02:58:31,069 --> 02:58:34,902
because we had to reorganize, if part of my legal department goes away because we had to reorganize, where are we then?

1556
02:58:38,669 --> 02:58:38,669
I know this is tough and there's going to be a lot of questions coming from

1557
02:58:44,569 --> 02:58:48,202
district 3. And the ideas of taking this median income into the district and seeing how that is going to impact them, I think is key.

1558
02:58:51,535 --> 02:58:51,535
but I would really like us, as the city of san antonio, to get out of the gate so

1559
02:58:56,035 --> 02:58:59,835
that the other taxing entities understand this is what we've done. This is the move we're making. And follow -- please try and

1560
02:59:04,535 --> 02:59:04,535
follow our lead and be as thoughtful as possible when you talk about your needs.

1561
02:59:08,669 --> 02:59:08,669
because I can see us foregoing an increase and others saying, well, woohoo

1562
02:59:17,869 --> 02:59:20,669
for us because we can raise it 8%. Thank you. >> mayor jones: councilmember meza gonzalez. >> gonzalez: just quickly

1563
02:59:25,635 --> 02:59:25,635
wanted to add. I think we talked about the airbnb fees, increasing

1564
02:59:30,969 --> 02:59:32,802
those. Is that part of the discussion? I know we have like a three-year permit but other cities do a yearly permit.

1565
02:59:39,402 --> 02:59:39,402
if you look at houston and dallas, it's almost double what we do.

1566
02:59:46,269 --> 02:59:49,869
>> walsh: I think it's definitely on the table. And councilwoman castillo brought that up at the work session. We didn't have time over the

1567
02:59:54,635 --> 02:59:54,635
last two and a half weeks. I think it's safe to say that you will see a proposed

1568
02:59:58,869 --> 02:59:58,869
recommendation in the budget in august that changes those fees.

1569
03:00:03,069 --> 03:00:03,069
>> gonzalez: okay. Thank you. >> mayor jones: any other

1570
03:00:07,769 --> 03:00:07,769
comments on the second round from my colleagues? Okay.

1571
03:00:12,602 --> 03:00:12,602
thank you, staff, for the hard work, always, but certainly over the last two

1572
03:00:19,435 --> 03:00:19,435
and a half weeks. For the public's benefit, I also asked for kind of what

1573
03:00:24,469 --> 03:00:24,469
it looks like, what is possible by the increment. I know when we have a

1574
03:00:29,135 --> 03:00:29,135
follow-on discussion we'll understand what's possible if we just took the

1575
03:00:35,835 --> 03:00:35,835
increment from '25, and '26 where does that get us. It's not a pretty picture

1576
03:00:41,369 --> 03:00:41,369
but for the fidelity all of us are looking for, that would be helpful .

1577
03:00:45,402 --> 03:00:45,402
it's hard to commit here to supporting a property tax increase when we just have

1578
03:00:55,435 --> 03:00:57,802
done a numbers exercise. We have no idea we look forward to that analysis. As was looking through this,

1579
03:01:03,669 --> 03:01:06,802
understand it's not recommended for discussion only but some of these cuts -- some I agree with -- and I will come back to that.

1580
03:01:10,269 --> 03:01:10,269
but some of these cuts, we're looking at some of these cuts that would

1581
03:01:22,869 --> 03:01:25,435
disproportionately impact our most vulnerable. When we talk about the department restructuring, it's not just any lawyers, it's lawyers that are in our

1582
03:01:31,069 --> 03:01:31,069
compliance, opportunity, and access office formerly known as dei.

1583
03:01:36,902 --> 03:01:36,902
these folks serve the underserved and equal access to public works and the

1584
03:01:42,902 --> 03:01:46,769
civil rights manager at the city attorney's office. I'm sure there's some efficiencies there but in some of these restructuring, there's still nine positions

1585
03:01:50,202 --> 03:01:50,202
that would be impacted there. To my colleague, councilman

1586
03:01:54,802 --> 03:01:54,802
mungia's point, as we're looking at the broader context at which these cuts

1587
03:02:00,102 --> 03:02:03,635
may take place, we're looking -- especially on the nutrition side, as councilwoman castillo mentioned. In a state t that hasn't

1588
03:02:12,235 --> 03:02:12,235
expanded medicaid the fact that we would be decreasing any positions related to

1589
03:02:18,269 --> 03:02:20,902
health improvement, community nutrition, closing four part-time nutrition centers for a savings of just under $100 million -- excuse me, $1 million, not

1590
03:02:29,802 --> 03:02:33,169
$100 million. It's really important as we're going to have the conversation shortly after about saws, when we look at where does work potentially

1591
03:02:37,569 --> 03:02:37,569
get delayed, but which parts of our community are most impacted by the fact that

1592
03:02:41,969 --> 03:02:41,969
they even need a nutrition center. I need to understand the

1593
03:02:47,902 --> 03:02:51,669
operational impact of some of these things. To the things that I actually agree with on some of these cuts. Look, if you are a private

1594
03:02:57,469 --> 03:02:57,469
entity charging a ticket fee. For example, you just

1595
03:03:02,802 --> 03:03:06,535
happened to be on the list, san antonio botanical garden. But we're reducing our funding from $1.2 million to $1 million.

1596
03:03:10,935 --> 03:03:10,935
they charge a ticket fee. They have an event called bubbles and blooms .

1597
03:03:17,969 --> 03:03:21,469
they'll be okay. I want to see a full list of these things, erik, that if you charge a ticket fee, then you can figure it out. I would like to see that go

1598
03:03:29,069 --> 03:03:31,269
to zero. $1.2 million to zero. If we're talking about cutting nutrition centers, we're not going to fund the botanical gardens.

1599
03:03:35,135 --> 03:03:35,135
I think this is actually also what my colleague, councilwoman spears was

1600
03:03:40,569 --> 03:03:40,569
discussing. These entities that we subsidize that are profit

1601
03:03:45,335 --> 03:03:45,335
making. So the fullest of those, erik, would be appreciated.

1602
03:03:50,402 --> 03:03:50,402
similarly, when we're talking about only cutting half of the subsidized --

1603
03:03:55,502 --> 03:03:55,502
the things that we subsidize for fiesta, that 700k I know was just one event, and

1604
03:04:01,169 --> 03:04:01,169
that's only 50%. You're going to have to talk to your centro buddies what

1605
03:04:06,602 --> 03:04:06,602
that means for them. Again, if you charge a ticket fee, we should not be

1606
03:04:11,302 --> 03:04:15,102
subsidizing your things and you can figure out how to right cost that. Some of these other things -- I do agree with the consolidation of

1607
03:04:19,002 --> 03:04:22,635
communications functions. I feel like we have approved several communications contracts and if that work can be conducted by those coms contracts or if there

1608
03:04:27,502 --> 03:04:27,502
needs to be also a writing of the distribution of work across the contracts and the

1609
03:04:34,369 --> 03:04:34,369
civilians. I agree there can be a consolidation of functions

1610
03:04:38,702 --> 03:04:38,702
there. I want us actually to look at seeing if we can increase

1611
03:04:43,502 --> 03:04:43,502
the number of folks for the audit team. My understanding is when we

1612
03:04:49,835 --> 03:04:49,835
look at kind of number of auditors per capita, we may be a little bit short

1613
03:04:55,502 --> 03:04:59,035
compared to other cities. When I look at what they were able to identify -- you have heard me share my concern about some of the practices that lead to I

1614
03:05:04,235 --> 03:05:04,235
think an insufficient level of oversight into things that drive up cost.

1615
03:05:08,735 --> 03:05:08,735
I appreciate here the audit team's identification of and now our ability to find

1616
03:05:14,902 --> 03:05:18,802
$3 million across two years regarding reducing overtime through the implementation of management and monitoring of leave policies. If we can increase the audit

1617
03:05:23,202 --> 03:05:23,202
team to similarly find cost-saving measures in the future, I think we'll do

1618
03:05:29,069 --> 03:05:32,469
ourselves well. The mayor's fitness council, understood. Got to cut it. We'll work to find a private sponsor.

1619
03:05:36,302 --> 03:05:40,169
that's just what it is. A lot of these things -- frankly, we shouldn't be funding these things at all. San antonio book festival. Corporate, philanthropy,

1620
03:05:47,369 --> 03:05:47,369
foundations, like pick this up. 150k in each year.

1621
03:05:51,869 --> 03:05:55,169
that's nothing. I'm not saying we don't need a book festival, I was there this last time and it was great. These are not things that

1622
03:05:58,402 --> 03:05:58,402
the public needs to be paying for. Military and veteran

1623
03:06:04,435 --> 03:06:07,802
affairs, chamber, can you pick that up? Others can pick this stuff up. Okay. The other things I'd like to

1624
03:06:14,902 --> 03:06:18,902
see before we start talking about a rate increase, I want to understand what can come in from the tirz, erik, even in '27, as well as '28, when folks I think see some

1625
03:06:25,235 --> 03:06:25,235
of the things that are being invested in at the cost of other things and us

1626
03:06:30,135 --> 03:06:33,602
potentially having to raise the property tax. We need to understand what can come in from the tirz. Freddie, I know you're also doing a deep dive into other

1627
03:06:38,569 --> 03:06:38,569
things that can come from the revenue manual. Thank you for that.

1628
03:06:43,002 --> 03:06:43,002
I also understand and I appreciate councilman mckee-rodriguez's

1629
03:06:47,369 --> 03:06:47,369
recommendation that as part of this we review the outstanding private debt due

1630
03:06:52,769 --> 03:06:52,769
to our community. So we'll look for that next time.

1631
03:07:05,169 --> 03:07:05,169
justina, the $20 million that you found due to the deep dive for the medicaid

1632
03:07:12,335 --> 03:07:15,169
1115 waivers, because we're talking about public health, we've just talked about some of the things that would be impacted as a result, do we have an understanding now of

1633
03:07:19,702 --> 03:07:19,702
how we might think about investing that money that's been identified?

1634
03:07:24,102 --> 03:07:24,102
>> sure. We went to -- >> mayor jones: is your

1635
03:07:28,535 --> 03:07:31,069
mic on? >> we presented to the community health committee last week, got some good feedback from them, so we are working on a plan that

1636
03:07:36,802 --> 03:07:40,702
will be discussed with the city manager and then presented as part of the proposed budget. >> mayor jones: great. Thank you.

1637
03:07:43,235 --> 03:07:43,235
I appreciate that. I'm not sure if we have rene here from hr,understanding

1638
03:07:52,469 --> 03:07:52,469
when we went through this exercise last year is that 90% of the city employees

1639
03:07:57,202 --> 03:07:57,202
make under $100,000, is that correct? >>

1640
03:08:02,902 --> 03:08:02,902
>> mayor jones: okay. I'd bet money on it because I remember that number.

1641
03:08:07,802 --> 03:08:07,802
but all that to say I certainly am thankful for everybody that dedicates

1642
03:08:14,602 --> 03:08:17,869
their time and talent to our city. I want to make sure if push comes to shove, erik, that we are giving the pay increase to those that are

1643
03:08:22,702 --> 03:08:22,702
the neediest, frankly, so keeping that to those that are making under 150k that

1644
03:08:28,202 --> 03:08:28,202
work for the city. Got some priors to your increase.

1645
03:08:37,069 --> 03:08:37,069
>> mayor, I'll jump in there. That will likely be my

1646
03:08:41,202 --> 03:08:44,569
recommendation. Past councils have talked about that and actually done it, past city managers have done it. It creates a division within

1647
03:08:47,902 --> 03:08:47,902
the employee workforce. So I won't be making that recommendation in august.

1648
03:08:53,535 --> 03:08:57,035
certainly we'll be prepared for you all to talk about that if you want to do that as part of the review of the proposed budget. >> mayor jones: I

1649
03:08:59,202 --> 03:09:02,502
appreciate that. I think there's already a bit of division considering 90% of folks make under 100k. On the library piece just

1650
03:09:11,769 --> 03:09:15,002
because councilwoman meza demons, I had the same question in terms of hey, how does that work? As explained it works when people are checking out and

1651
03:09:18,902 --> 03:09:22,235
their card is identified. As somebody again that was raised by a single mom, public library very important to our community. I also need to understand

1652
03:09:27,235 --> 03:09:30,769
what does this actually look like in practice? I know we pay a little bit more than -- sorry, we offset some of the county's expenses as it relates to

1653
03:09:34,402 --> 03:09:34,402
that, but the library is just not where I'm supportive of cuts.

1654
03:09:39,202 --> 03:09:39,202
or charging that fee. Okay. Thank you again for the hard

1655
03:10:10,369 --> 03:10:10,369
work. Let me -- yeah, thank you again for the hard work, and

1656
03:10:14,769 --> 03:10:14,769
we'll look forward to the proposed budget in august. >> yeah, mayor and council,

1657
03:10:20,135 --> 03:10:23,969
this is exactly what we needed to hear. We really appreciate the conversation, the continuation from the work session.

1658
03:10:26,202 --> 03:10:26,202
look, at the end of the day, you can rest assured and anybody that's concerned

1659
03:10:30,235 --> 03:10:30,235
about it can be rest assured that we're going to deliver a two-year balanced budget

1660
03:10:34,369 --> 03:10:34,369
to you in august, so the feedback you're giving us today, the feedback from the

1661
03:10:39,535 --> 03:10:39,535
work session, we'll work diligently and at the end of the day we'll all get

1662
03:10:44,169 --> 03:10:47,869
squared up. As long as we set the framework and not put ourselves in a position where it's a short-term gain and a long-term impact, then

1663
03:10:53,102 --> 03:10:56,402
I'm confident -- I'm not going to propose to you all that, and it's something that you all won't want to do either, but the conversation is helpful for

1664
03:11:00,502 --> 03:11:00,502
us as we launch off into that deep dive over the next two months.

1665
03:11:04,569 --> 03:11:07,535
thanks, mayor. >> mayor jones: erik, actually, it reminded me, lots of attention on, frankry, the biggest parts of our budget.

1666
03:11:12,802 --> 03:11:12,802
I know there was interest by many of my colleagues and some kind of audit, even a

1667
03:11:16,869 --> 03:11:20,469
portion of, as it relates to the police department. In the interest of cost savings, are we interested to do even a portion of that to inform the '27 budget?

1668
03:11:26,735 --> 03:11:30,435
>> actually, on that list of reductions you see about six-million-dollar reduction in police overtime. So -- secondly, I don't know if buddy is in the room, but

1669
03:11:36,002 --> 03:11:36,002
I think he is launching off into an audit of police overtime just like he just

1670
03:11:41,602 --> 03:11:45,335
recently completed the overtime with fire overtime. >> mayor jones: will we have that for '27? >> I already jumped ahead and said we're going to cut

1671
03:11:50,035 --> 03:11:53,435
six million dollars out of it, so we'll do the deep dive on that. I think his process piece will be important to what councilmember

1672
03:11:56,835 --> 03:12:00,702
mckee-rodriguez said, which is are there issues within the cba that we need to identify from a practice standpoint? But you will likely see

1673
03:12:05,002 --> 03:12:07,569
reductions to police overtime in the proposed budget. I'll check with buddy about where he's at with his overtime.

1674
03:12:10,969 --> 03:12:10,969
>> mayor jones: to be clear about what you've just said, so there's the

1675
03:12:15,435 --> 03:12:15,435
recommendation of 6 million. There is an audit around specifically the overtime,

1676
03:12:21,235 --> 03:12:21,235
which may yield additional savings? >> I don't know what the

1677
03:12:25,969 --> 03:12:28,369
audit will yield. >> but those are two separate issues. >> they are two separate issues. There will be service

1678
03:12:31,169 --> 03:12:34,769
impacts if we reduce overtime in certain areas in the police department, and we'll come back to you all in -- if we do those we'll come back to you in august

1679
03:12:40,069 --> 03:12:43,569
and say these are the impacts to services, whatever they are. I don't know what buddy will come up with, but he's going to review the processes and

1680
03:12:47,269 --> 03:12:47,269
procedures and the approvals and the adherence to both the collective bargaining

1681
03:12:51,835 --> 03:12:53,835
agreement and the rules and regulations of the police department. That's the scope of his audit. >> mayor jones: yeah,

1682
03:12:56,335 --> 03:12:59,569
appreciate that. Because the fire department's audit, it didn't necessarily say a reduction of overtime, it yields a decrease in

1683
03:13:05,135 --> 03:13:07,969
service. Some of that was because it was a management -- >> it was a management issue, got it. Okay.

1684
03:13:17,369 --> 03:13:17,369
thank you. On to saws. >> item number 9 is an

1685
03:13:25,969 --> 03:13:29,802
ordinance approving adjustments toes to the san antonio water system's rates for residential, general, irrigation and wholesale customers for 2026

1686
03:13:34,935 --> 03:13:34,935
through 2029. >> mayor jones: let's get started.

1687
03:15:11,119 --> 03:15:13,352
okay. The clerk has already read the caption. Over to staff for a presentation. >> mayor, I'm going to turn

1688
03:15:21,519 --> 03:15:21,519
it over to mr. Puente to do the presentation. >> good afternoon mayor,

1689
03:15:45,086 --> 03:15:47,752
council members. Thank you again for the opportunity to be in front of you. Relatively short presentation.

1690
03:15:52,086 --> 03:15:52,086
a lot of the issues that we've had we've been discussing with you.

1691
03:15:57,586 --> 03:15:57,586
so on -- I used this slide at different times, especially at your town hall

1692
03:16:04,486 --> 03:16:07,486
meetings where I've been going and tucking to our residents about our needs. When I present this slide I usually talk about we've been able to do all these,

1693
03:16:10,986 --> 03:16:10,986
meet all these challenges and not have a rate increase.

1694
03:16:16,919 --> 03:16:20,419
those challenges could not have been made without transparency, accountability and a disciplined financial management. The fact that we went five

1695
03:16:25,086 --> 03:16:25,086
years without a rate increase demonstrates that we were not simply passing

1696
03:16:29,386 --> 03:16:32,986
calls to our customers. We absorbed those pressures while continuing investment in our critical infrastructure. The primary driver of this

1697
03:16:42,119 --> 03:16:46,019
rate proposal is infrastructure investment. During the last five years saws has successfully managed and delivered approximately $2.6 billion

1698
03:16:51,519 --> 03:16:51,519
without a rate increase. With the expectation that projects that began in the

1699
03:16:56,119 --> 03:16:56,119
latter years and remain under construction, we have completed

1700
03:17:05,552 --> 03:17:05,552
as planned, but we now face a larger challenge, a $3.2 billion program over

1701
03:17:11,552 --> 03:17:15,452
the next five years. Our track record gives us confidence that we can successfully execute this plan as well. Just as importantly we have

1702
03:17:21,352 --> 03:17:21,352
been transparent and accountability regarding our capital program performance

1703
03:17:25,952 --> 03:17:25,952
and we will continue that same level of accountability going forward.

1704
03:17:31,986 --> 03:17:35,052
we recognize that expectations today are different than they were even a few years ago. That's why we commissioned an independent efficiency

1705
03:17:39,819 --> 03:17:42,919
study to look at our capital program. It is important to note that it is not an audit, it is a capital operational review focused on identifying

1706
03:17:48,752 --> 03:17:51,952
opportunities for improvement. The preliminary findings confirm that saws maintains a very sophisticated ability to identify and manage large

1707
03:17:57,319 --> 03:18:00,286
scale infrastructure projects. The study specifically highlighted our strong balance sheet, technical competence of our workforce

1708
03:18:04,519 --> 03:18:04,519
and integrated management systems. At the same time the study

1709
03:18:09,319 --> 03:18:12,386
acknowledged that utilities today operate in a very different environment, a more complex and expensive environment. Aging infrastructure,

1710
03:18:17,586 --> 03:18:21,319
resiliency requirements, workforce challenges, and escalating construction costs all require us to continuously improve. The recommendations from the

1711
03:18:27,786 --> 03:18:27,786
study focus on governance, communication, strategic planning and stakeholder

1712
03:18:33,352 --> 03:18:37,086
engagement. Once the board formally accepts this study we stand ready to brief this council and implement those recommendations as we

1713
03:18:40,019 --> 03:18:40,019
incorporate them into our operations. Water stewardship or what we --l

1714
03:18:49,552 --> 03:18:49,552
non-revenue water. One of the most frequent criticisms directed at saws

1715
03:18:54,586 --> 03:18:57,552
involves water loss from breaks and leaks from our water distribution system. And frankly, it is criticism that was well deserved. That is why in 2023 we

1716
03:19:04,052 --> 03:19:04,052
renewed our focus and established the office of non-revenue water.

1717
03:19:09,286 --> 03:19:09,286
since then we have reduced real water losses by approximately 25%.

1718
03:19:13,452 --> 03:19:13,452
25% in just these last two years, three years, a reduction of that issue that

1719
03:19:19,219 --> 03:19:19,219
was really highlighting the news a few years ago. There's even more work ahead

1720
03:19:25,052 --> 03:19:28,519
and we recognize that, but we are one of the leaders here in texas. Houston currently, for example, experiences twice the volume of real water

1721
03:19:32,252 --> 03:19:36,186
loss that saws does. In fact, the country of denmark invited and sponsored a visit by saws staff to discussion different approaches on how

1722
03:19:39,552 --> 03:19:39,552
to tackle this issue. We are not declaring victory, but demonstrating

1723
03:19:47,352 --> 03:19:47,352
progress and a clear commitment for improvement. Data centers, although it's

1724
03:19:51,819 --> 03:19:51,819
not part of this rate increase, councilmember galvan asked us to talk a

1725
03:19:56,519 --> 03:19:59,052
little bit about data centers. Currently we have eight to 10 under consideration, probably closer to eight. We meet biweekly with cps

1726
03:20:03,419 --> 03:20:03,419
energy to coordinate our efforts to find out what's happening, what their doing

1727
03:20:07,719 --> 03:20:07,719
versus what we're doing. Cps sometimes has challenges because of nondisclosure

1728
03:20:15,219 --> 03:20:17,986
agreements but we've been working with them to know what each other is doing and what is coming down the pike so that they can be ready and we can be ready.

1729
03:20:24,652 --> 03:20:24,652
next month or board will be considering a water master plan and part of that plan

1730
03:20:30,019 --> 03:20:30,019
will be how are we going to handle redundancy and reliability, specifically

1731
03:20:35,686 --> 03:20:38,286
with data centers on how they're going to be involved in this process. Some policy items to review and implement for next year are that they require a

1732
03:20:45,619 --> 03:20:49,486
maximum use of recycled water. That evaporating cooling is something that we have to have as least possible, as few possible of that kind of

1733
03:20:54,019 --> 03:20:54,019
operation. The loop system is much, much better.

1734
03:20:59,019 --> 03:20:59,019
a modified rate and fee structure we will also talk about, and also any

1735
03:21:04,652 --> 03:21:04,652
contamination controls that need to be implemented. Why a four-year rate plan

1736
03:21:12,352 --> 03:21:12,352
matters. This slide illustrates why this four-rate plan is so

1737
03:21:16,819 --> 03:21:20,219
important. Infrastructure planning does not occur one year at a time. Contractors, engineers, suppliers, financial markets

1738
03:21:22,786 --> 03:21:22,786
all need certainty regarding our able to fund projects over the years.

1739
03:21:30,852 --> 03:21:34,552
the 2026 through 2029 capital program totals activity. If rates were only approved for the near term, projects scheduled for '28 and 29

1740
03:21:41,552 --> 03:21:41,552
become uncertain, delays create significant risks. Construction costs continue

1741
03:21:46,019 --> 03:21:46,019
to escalate, meaning projects become more expensive.

1742
03:21:50,519 --> 03:21:50,519
the rate projects increase the likelihood of lost water, of infrastructure

1743
03:21:55,752 --> 03:21:55,752
failures, regulatory challenges and future water supply constraints.

1744
03:22:00,752 --> 03:22:00,752
a four year plan allows us to fully sequence those projects, secure competitive

1745
03:22:05,252 --> 03:22:05,252
pricing and deliver infrastructure at the lowest cost possible for our

1746
03:22:13,552 --> 03:22:13,552
customers. This proposal reflects extensive discussion between

1747
03:22:18,486 --> 03:22:20,819
saws and the utilities office. The recommended rate plan before you today is not simply saws' proposal, it reflects a thorough review

1748
03:22:25,119 --> 03:22:25,119
by city staff, several adjustments that reduced our revenue requirements knowing

1749
03:22:30,152 --> 03:22:30,152
that those adjustable reduced amount of revenue required preserving our

1750
03:22:39,419 --> 03:22:42,286
infrastructure needs to maintain reliable service. In other words, a lot of the compromises we've made with the office of public utilities was on the o&m

1751
03:22:46,986 --> 03:22:48,986
side. I think they recognize that this capital infrastructure is needed for the future. A demonstration that saws and the city work together

1752
03:22:55,752 --> 03:22:55,752
to scrutinize the costs to be a fair rate plan for our customers.

1753
03:23:02,252 --> 03:23:02,252
this slide shows the agreed upon -- the agreed upon plan that this rate supports.

1754
03:23:09,019 --> 03:23:12,586
the investment is focused on this includes wastewater treatment, water supply reliability, system

1755
03:23:19,786 --> 03:23:22,152
reliability, water stewardship initiatives, replacement of infrastructure and growth-related projects. These are not discretionary

1756
03:23:26,352 --> 03:23:26,352
projects, these are necessary projects. They are investments

1757
03:23:30,619 --> 03:23:34,252
necessary to maintain regulatory compliance, protect public health, accommodate growth and ensure water security. The city and saws agree that

1758
03:23:38,119 --> 03:23:38,119
projects are essential and should move forward. This slide reflects the

1759
03:23:45,552 --> 03:23:45,552
rates that were ultimately agreed upon by saws and your office of public utilities.

1760
03:23:50,452 --> 03:23:50,452
the plan before you today requests a compromise that balances affordability with

1761
03:23:55,452 --> 03:23:59,086
our infrastructure needs. It provides certainty for customers while allowing saws to responsibly plan and execute our program. Importantly this

1762
03:24:05,319 --> 03:24:05,319
recommendation has already undergone significant review and refinement through the

1763
03:24:09,852 --> 03:24:09,852
city process and what I just --s that review by public utilities office when the

1764
03:24:17,819 --> 03:24:17,819
rates went down through the first two years and then a ceiling and a floor for the

1765
03:24:23,486 --> 03:24:26,186
all right third and fourth year. This is not simply our proposal, it is a rate plan recommended by your office and after months and months

1766
03:24:29,419 --> 03:24:29,419
of analysis. We heard you during your budget discussions.

1767
03:24:37,386 --> 03:24:37,386
these are not easy decisions, but we have a program that I believe helps

1768
03:24:42,119 --> 03:24:42,119
us in this endeavor. One of the most important elements of this proposal is

1769
03:24:48,552 --> 03:24:48,552
the expansion of affordability programs. We are not -- we are

1770
03:24:53,052 --> 03:24:53,052
increasing reliability from 125 to 150% of the federal poverty level.

1771
03:24:58,486 --> 03:25:02,452
we are increasing funding for other programs and strengthening community outreach efforts. I want to highlight the fourth bullet in this slide.

1772
03:25:09,186 --> 03:25:13,019
today we know neighborhoods that have a significant number of households already receiving uplift benefits. For example, if we see we have a computerized program

1773
03:25:17,619 --> 03:25:17,619
where we can look at down to the block level and if you take 20 houses on that

1774
03:25:25,152 --> 03:25:25,152
block, if 12 of them are on the uplift program, if 12 families are on that

1775
03:25:31,286 --> 03:25:31,286
program, chancers that other families on that block also need the help and assistance

1776
03:25:36,219 --> 03:25:36,219
we can provide. Under this program we will use that data and census

1777
03:25:44,586 --> 03:25:46,952
track information to identify those areas. And we know where these areas are. It's easy to drive through san antonio and know exactly

1778
03:25:50,019 --> 03:25:53,452
what neighborhoods we need to put into this pilot program. We will then automatically enroll them into these households and provide them

1779
03:25:57,219 --> 03:25:57,219
with six months of complete -- before they have to complete the

1780
03:26:01,452 --> 03:26:01,452
qualification process. In other words, they will be automatically enrolled into

1781
03:26:06,586 --> 03:26:09,886
this program. In six months we will help them continue the qualification if they do qualify to stay on that program.

1782
03:26:12,052 --> 03:26:12,052
this is a more targeted and more productive and more equitable approach to this

1783
03:26:16,486 --> 03:26:16,486
affordability assistance. And by the way, this potential rate increase does

1784
03:26:22,919 --> 03:26:22,919
not affect any customer already on that program. Even after this 2026 rate

1785
03:26:28,319 --> 03:26:28,319
adjustment, saws will continue to have some of the lowest residential water and

1786
03:26:32,419 --> 03:26:32,419
wastewater rates among texas cities. As you can see, many of the

1787
03:26:37,886 --> 03:26:37,886
cities, even our closest neighbors, austin, houston, corpus, have the highest

1788
03:26:41,986 --> 03:26:41,986
rates in texas. That affordability has been achieved while investing in

1789
03:26:46,252 --> 03:26:46,252
long-term water supplies, infrastructure reliability, environmental stewardship,

1790
03:26:52,019 --> 03:26:52,019
drought resilience and still maintaining the highest credit rating saws has ever

1791
03:26:56,752 --> 03:26:56,752
had. So saws as a utility are able to continuously have

1792
03:27:02,086 --> 03:27:02,086
these low rates and still meet those requirements that this community relies on.

1793
03:27:09,186 --> 03:27:12,286
so mayor, council, I know it's a brief presentation, but I think we've been in front of you, I've been to your town halls, met with you individually, and I

1794
03:27:16,886 --> 03:27:16,886
stand ready to answer any questions that you may have. >> mayor jones: yes, at my

1795
03:27:25,652 --> 03:27:29,586
town halls I was like where's robert? Just kidding! We have public comment. We have several folks that have signed in to -- signed

1796
03:27:35,186 --> 03:27:35,186
up to speak on this item. The first person is kevin. You have three minutes,

1797
03:27:42,486 --> 03:27:42,486
followed by erik lattinger and jonathan gerwitz. >> thank you, mayor jones,

1798
03:27:49,186 --> 03:27:51,419
council members, thank you for the opportunity to speak today. My name is kevin, I'm honored to serve as chairman of the greater san antonio

1799
03:27:55,619 --> 03:27:59,519
chamber of commerce. I know many of you who serve on council and I sincerely thank you for your service. I'm here today in support of the proposed san antonio

1800
03:28:03,852 --> 03:28:03,852
water system four-year rate adjustment. This support comes with the

1801
03:28:12,819 --> 03:28:12,819
unanimous endorsement of the great chamber's board of directors.

1802
03:28:17,386 --> 03:28:17,386
no one wants higher utility costs, however leadership needs us to look at today's

1803
03:28:23,752 --> 03:28:26,386
costs and future consequences if we fail to invest in the infrastructure that our community depends upon. Water is not simply another

1804
03:28:29,986 --> 03:28:29,986
utility, it is the foundation of public health, economic development and

1805
03:28:34,052 --> 03:28:34,052
quality of life of the children and families who call our community home.

1806
03:28:38,252 --> 03:28:38,252
the proposed rate adjustment will help fund critical improvements to aging

1807
03:28:43,852 --> 03:28:43,852
infrastructure, strengthen wastewater treatment and collection systems,

1808
03:28:48,519 --> 03:28:52,219
modernize operations, reduce water loss, enhance system resilience. These are not optional investments. These are essential

1809
03:28:56,186 --> 03:28:56,186
investments. At the same time, the business community believes

1810
03:29:00,419 --> 03:29:03,586
strongly that investment must be accompanied by accountability. We support continued transparency, public reporting and measurable

1811
03:29:08,319 --> 03:29:08,319
outcomes so ratepayers can clearly see how these dollars are being invested

1812
03:29:12,919 --> 03:29:12,919
and what results are being achieved. This decision is ultimately

1813
03:29:17,819 --> 03:29:17,819
about stewardship. It is about making prudent investments today so that we

1814
03:29:24,686 --> 03:29:24,686
can avoid much higher and greater cost, deferred maintenance and insufficient

1815
03:29:29,819 --> 03:29:33,586
infrastructure in the future. Just ask our neighbors in corpus christi about that path. The easiest vote to often to

1816
03:29:40,486 --> 03:29:43,052
delay infrastructure investment for whatever reason. The responsible vote is to make the investment before a crisis forces it upon us at

1817
03:29:49,386 --> 03:29:53,086
a much greater cost. On behalf of the greater san antonio chamber of commerce, I respectfully encourage your support of the proposed saws rate

1818
03:29:57,486 --> 03:30:00,219
adjustment. And again, I want to thank you for your leadership and devotion to the people of san antonio. Mayor, I hope most of you

1819
03:30:06,186 --> 03:30:06,186
who know me personally know that I care about every quadrant of this city, east,

1820
03:30:11,219 --> 03:30:14,052
south, west, north, all of them. I've done this for many, many years in many capacities. This is a large decision.

1821
03:30:17,886 --> 03:30:17,886
I don't want my water bill to go up, but when I look at what is happening with water

1822
03:30:23,252 --> 03:30:23,252
loss it is stunning to me if I had a pipe leaking at my house I'd get it fixed.

1823
03:30:31,286 --> 03:30:31,286
I'd find the money to do it because I can't waste that incredibly valuable

1824
03:30:35,986 --> 03:30:38,552
resource. Goodness. Look at what's happened in austin. I drive through alamo heights, they're on stage 4.

1825
03:30:42,886 --> 03:30:42,886
thank goodness the saws board some years ago took action on the vista ridge

1826
03:30:47,319 --> 03:30:47,319
project. [buzzer]. Thank you for your

1827
03:30:54,686 --> 03:30:54,686
leadership. God bless. >> mayor jones:

1828
03:31:03,686 --> 03:31:03,686
speakers]. >> what's up, guys? It's been awhile.

1829
03:31:10,252 --> 03:31:10,252
I really didn't want to come up here and sound too angry so I thought I'd write some

1830
03:31:15,819 --> 03:31:15,819
jokes instead. Saws ceo robert puente makes a base salary of $593,000 a

1831
03:31:22,919 --> 03:31:22,919
year, and he recently received a bonus of over $132,000 a year.

1832
03:31:32,119 --> 03:31:35,286
that's $725,000. That's about 10 times as much as y'all are making from this job. That's kind of funny to me. I don't know.

1833
03:31:39,119 --> 03:31:39,119
maybe not to y'all. It's a little funny that some of y'all might not

1834
03:31:53,119 --> 03:31:53,119
afford it. Maybe we could afford it if we cut out some of the

1835
03:32:01,986 --> 03:32:01,986
nonsense that y'all were talking about earlier because must people realize

1836
03:32:06,719 --> 03:32:09,052
that san antonio has a spending problem, not a revenue problem. You know, this ordinance has to be a joke. At a time when most average

1837
03:32:15,752 --> 03:32:15,752
americans and american families are struggling at a time when we don't know how

1838
03:32:22,586 --> 03:32:22,586
much gas is going to be from week to week because of what's going on in foreign

1839
03:32:30,452 --> 03:32:33,419
countries. Mr. Puente came to my community in district 10 a few weeks ago trying to sell us on this idea, telling us it's only going to be a

1840
03:32:37,219 --> 03:32:37,219
couple bucks more a month. The one making over $700 a year doesn't understand what

1841
03:32:42,786 --> 03:32:42,786
it's like to be broke at the end of the month, wishing you had that couple of extra

1842
03:32:49,652 --> 03:32:49,652
dollars. He doesn't understand that. So someone making that kind

1843
03:32:53,686 --> 03:32:53,686
of money asking we the people for more money, is a joke.

1844
03:33:01,519 --> 03:33:01,519
mr. Puente has been in power since 2008 and the average water bill has increased 41

1845
03:33:08,052 --> 03:33:08,052
to 61% since then. And he wants another 30 percent.

1846
03:33:14,219 --> 03:33:14,219
what a joke. I also want to point out that mr. Puente is past

1847
03:33:21,552 --> 03:33:21,552
retirement age so maybe he should stop enriching himself and step down and

1848
03:33:25,886 --> 03:33:25,886
let somebody else do the job. Thank you.

1849
03:33:30,186 --> 03:33:30,186
[applause]. >> mayor jones: jonathan, followed by jack finger.

1850
03:33:37,519 --> 03:33:37,519
>> mayor and council, I am chair of the greater san antonio chamber's public

1851
03:33:45,552 --> 03:33:48,419
policy council. The chamber recognizes the critical importance of continued investment in our regions, water infrastructure, to support

1852
03:33:52,919 --> 03:33:52,919
long-term economic growth, system reliability and quality of life.

1853
03:33:57,952 --> 03:34:01,619
as one of the fastest growing regions in the country, san antonio must continue to plan proactively to meet future water demands and ensure the resiliency of

1854
03:34:06,986 --> 03:34:06,986
our infrastructure. The greater chamber supports thoughtful and strategic

1855
03:34:11,919 --> 03:34:11,919
infrastructure investment, including the proposed investments necessary to

1856
03:34:16,252 --> 03:34:16,252
maintain and modernize critical water infrastructure as -- as well

1857
03:34:21,186 --> 03:34:21,186
as the associated rate adjustments proposed by saws saws.

1858
03:34:25,719 --> 03:34:29,486
I'll note as you did, mayor, that transformational economic investments like the one toyota is making, are only possible because of the water and energy

1859
03:34:36,486 --> 03:34:36,486
infrastructure investments of our public utilities. Support for this rate

1860
03:34:41,519 --> 03:34:45,519
adjustment must be accompanied by strong accountability, operational clarity and measurable progress in addressing the infrastructure and system

1861
03:34:50,819 --> 03:34:50,819
management challenges currently facing the community.

1862
03:34:56,486 --> 03:34:56,486
of particular concern is the urgent and ongoing issue of widespread water loss

1863
03:35:01,052 --> 03:35:01,052
throughout the community. Water loss at the scale currently being experienced

1864
03:35:05,786 --> 03:35:05,786
represents not only financial inefficiency, but also the loss of an

1865
03:35:12,319 --> 03:35:15,986
increasingly scarce and valuable public resource. Saws cannot effectively deal with this loss without the proposed capital program. The greater chamber churches

1866
03:35:24,319 --> 03:35:24,319
saws staff and board of trustees to publicly report against clear operational

1867
03:35:29,619 --> 03:35:33,552
branches tied to leak reduction, infrastructure replacement, response times and non-revenue water reduction goals that have already been identified

1868
03:35:37,219 --> 03:35:37,219
within the utilities planning framework. Greater chamber supports

1869
03:35:42,986 --> 03:35:42,986
these infrastructure investments that position san antonio for long-term

1870
03:35:47,586 --> 03:35:51,186
success and strengthen the reliability of our water system. Their proposed rate adjustment should be accompanied by clear

1871
03:35:55,486 --> 03:35:55,486
accountability measures, clear reporting, improved coordination and

1872
03:36:00,052 --> 03:36:04,052
demonstrated progress in addressing the operational and infrastructure challenges most affecting our community today. Thank you.

1873
03:36:08,519 --> 03:36:08,519
>> mayor jones: thank you. Jack finger, followed by luis rodriguez and then

1874
03:36:17,519 --> 03:36:17,519
jessica pelaasios. >> well, madam mayor and other members of our

1875
03:36:33,452 --> 03:36:35,952
illustrious san antonio city council. For the record my name is jack m finger. It's a classic tactic among negotiators, one side will

1876
03:36:42,919 --> 03:36:42,919
say, I propose that I will sell you these widgets for a mere 100% increase over what

1877
03:36:51,719 --> 03:36:51,719
we've been doing in the past. The other side says are you

1878
03:36:57,319 --> 03:36:57,319
out of your mind, 100% increase? No!  Okay, okay.

1879
03:37:05,786 --> 03:37:05,786
I'll make it a mere 75% increase. Are you stupid?

1880
03:37:11,886 --> 03:37:11,886
I'm not going to accept a 75% increase! >> okay, okay, I'll get

1881
03:37:17,286 --> 03:37:17,286
real. A mere 50% increase in the cost of these widgets.

1882
03:37:26,286 --> 03:37:26,286
well, you reciprocated so much here I guess I'll try the 50% area there.

1883
03:37:33,286 --> 03:37:33,286
when the 50% is what the other side was planning all along!

1884
03:37:39,786 --> 03:37:39,786
what is saws planning to do with our bills and what are you planning to give them?

1885
03:37:45,486 --> 03:37:45,486
well, what do the headlines say once again? Let's see what the

1886
03:37:55,219 --> 03:37:55,219
audio/visual has to say. City backs smaller saws hike.

1887
03:37:59,952 --> 03:37:59,952
and let's see if we can read the red underlined area there and blow it up a

1888
03:38:04,686 --> 03:38:04,686
little bit. This week city staff offered a rate hike of bills between

1889
03:38:12,552 --> 03:38:12,552
26% and 30% by 2029. 26 to -- thank you. Return to camera, if you

1890
03:38:21,552 --> 03:38:25,452
would. By my calculation, that's about 30% over -- that's almost -- that's somewhere between eight and 10% a year.

1891
03:38:31,086 --> 03:38:31,086
eight and 10% a year. Not one or two percent, not three or four, eight or 10% 10%

1892
03:38:40,852 --> 03:38:40,852
a year. Now, I'm sorry, they say this is going for

1893
03:38:45,219 --> 03:38:45,219
infrastructure, we've got to fix all our leaks and all our paging pipes.

1894
03:38:53,419 --> 03:38:53,419
I already thought that we were paying that with our rate-paying bills there.

1895
03:38:58,752 --> 03:38:58,752
isn't that what we -- we expected saws to do? I remember I go back so long

1896
03:39:06,286 --> 03:39:06,286
to remember that back in the '70s and '80s and '90s when they had leaks all over the

1897
03:39:15,052 --> 03:39:15,052
city with a plastic pvc piping and they said we've got to have a rate increase

1898
03:39:21,052 --> 03:39:24,852
for that. We keep giving rate increases and I say where is the money going? What happened to all the money we paid in the past?

1899
03:39:28,519 --> 03:39:28,519
well, maybe it's going to mr. -- all these exorbitant salaries.

1900
03:39:33,352 --> 03:39:33,352
do you think? [buzzer]. Thank you.

1901
03:39:38,186 --> 03:39:38,186
>> luis rodriguez, followed by jessica, and then rebecca.

1902
03:39:48,819 --> 03:39:52,486
>> is luis here. >> he's not here. >> mayor jones: we'll go straight to you, thanks. >> thank you. Good afternoon, mayor jones

1903
03:39:56,419 --> 03:39:56,419
and city councilmembers. My name's jessica and I serve as the director of

1904
03:40:00,452 --> 03:40:00,452
government affairs at the san antonio hispanic chamber of commerce, proudly

1905
03:40:05,419 --> 03:40:05,419
headquartered in district 4, representing nearly 900 business members throughout

1906
03:40:09,552 --> 03:40:09,552
the entire city. The san antonio hispanic chamber of commerce supports

1907
03:40:13,952 --> 03:40:13,952
the saws proposed rate adjustment as a necessary investment in long-term

1908
03:40:18,986 --> 03:40:18,986
reliability of our water and wastewater infrastructure and our city's continued

1909
03:40:25,152 --> 03:40:25,152
economic growth. On average, san antonio grows by 20,000 residents

1910
03:40:30,286 --> 03:40:30,286
every year. The reality is that as san antonio continues to

1911
03:40:35,452 --> 03:40:35,452
grow, so does the demand placed on critical infrastructure systems.

1912
03:40:42,119 --> 03:40:46,052
reliable water and wastewater service remain essential, not only for residents, but for employers, housing development, workforce

1913
03:40:50,986 --> 03:40:50,986
growth, and future economic investment. We appreciate that saws has

1914
03:40:56,852 --> 03:40:56,852
engaged extensively with stakeholders throughout this process and has continued to

1915
03:41:01,352 --> 03:41:01,352
refine its proposal based on discussions with city leadership.

1916
03:41:05,886 --> 03:41:05,886
we also recognize the modifications made following the june 10th council b

1917
03:41:11,019 --> 03:41:11,019
session resulting in the lower proposed -- in a lower proposed rate than

1918
03:41:17,519 --> 03:41:17,519
originally presented. At the same time our support for infrastructure -- for

1919
03:41:22,586 --> 03:41:22,586
this infrastructure investment must be accompanied by ongoing

1920
03:41:27,652 --> 03:41:29,986
collaboration and partnership and transparency as outlined in a letter sent to you at the beginning of the month. The san antonio hispanic

1921
03:41:34,652 --> 03:41:34,652
chamber of commerce encourages saws to provide accessible updates on how

1922
03:41:39,886 --> 03:41:39,886
these investments are being implemented including measurable progress toward

1923
03:41:46,586 --> 03:41:50,219
infrastructure improvements and water loss reduction efforts. We also encourage continued collaboration with the business community to

1924
03:41:53,586 --> 03:41:53,586
increase awareness of available conservation programs, rebates and other

1925
03:41:57,852 --> 03:41:57,852
resources that can help residents and employers better manage utility costs.

1926
03:42:04,619 --> 03:42:08,486
and finally, we support continued efforts to strengthen affordability through cost management, ongoing evaluation of contracts and expenditures,

1927
03:42:15,786 --> 03:42:15,786
and exploration of additional funding and partnership strategies that

1928
03:42:20,419 --> 03:42:23,586
can help strengthen affordability while ensuring critical infrastructure investment. Thank you for your time and your consideration and

1929
03:42:28,252 --> 03:42:28,252
commitment to san antonio's future. Thank you.

1930
03:42:33,252 --> 03:42:33,252
>> mayor jones: rebecca rebecca viagran. >> good afternoon, mayor,

1931
03:42:42,319 --> 03:42:45,552
council members, city manager, city attorney. My name is rebecca and I am proud to serve as the president and ceo of south texas partnership.

1932
03:42:50,752 --> 03:42:50,752
and our board of directors are in strong support of the proposed saws rate.

1933
03:42:57,986 --> 03:43:01,652
our mission is sustained economic prosperity across south texas through collaboration and advocacy. A critical part of that mission is to ensure that

1934
03:43:05,619 --> 03:43:05,619
all businesses, families and communities have access to infrastructure necessary to

1935
03:43:12,152 --> 03:43:12,152
grow and thrive. And that the foundation of that infrastructure is

1936
03:43:17,619 --> 03:43:21,286
water. Every resident, business, school and hospital depends on reliable access to safe drinking water everyday. Investing today allows us to

1937
03:43:28,186 --> 03:43:28,186
replace aging infrastructure before it becomes a public health emergency.

1938
03:43:32,419 --> 03:43:32,419
this discussion is about more than rates, it's about securing infrastructure

1939
03:43:37,086 --> 03:43:37,086
investments necessary for long-term growth across san antonio.

1940
03:43:41,386 --> 03:43:41,386
nowhere is that more important than on the southside where aging

1941
03:43:47,486 --> 03:43:47,486
systems and increasing demand are converging. These investments ensure

1942
03:43:53,586 --> 03:43:53,586
that south san antonio is not left behind, but positioned to thrive as our

1943
03:44:00,386 --> 03:44:00,386
city grows. And growth is already happening.

1944
03:44:05,586 --> 03:44:05,586
in 2024 alone they issued thousands of permits. Water and wastewater systems

1945
03:44:12,619 --> 03:44:16,486
are also essential to competitiveness. Businesses can locate anywhere. They choose communities that can guarantee dependable

1946
03:44:24,152 --> 03:44:26,919
security, like water security. As companies invest in san antonio, they are not just creating jobs, they bring new families, housing,

1947
03:44:31,519 --> 03:44:31,519
schools, suppliers and commercial development. Growth of this magnitude

1948
03:44:36,219 --> 03:44:36,219
depends on one critical resource, reliable water and wastewater infrastructure.

1949
03:44:41,486 --> 03:44:41,486
we also recognized the importance of affordability and we appreciate that

1950
03:44:46,219 --> 03:44:50,219
continued investment is going to happen in the uplift program. We are encouraged that saws has already committed to continue transparency,

1951
03:44:55,586 --> 03:44:55,586
strong oversight and clear reporting on how rate-supported investments

1952
03:45:00,286 --> 03:45:00,286
improve service and create opportunity. We courage you all today to

1953
03:45:09,552 --> 03:45:13,086
acted decisively today, supporting this ray adjustment is a commitment to safe drinking water, system reliability and long-term water security on

1954
03:45:17,219 --> 03:45:17,219
for all san antonians. And demonstration that south san antonio's infrastructure

1955
03:45:24,419 --> 03:45:27,886
needs will be met with the same amount of urgency as the rest of the city. We respectfully urge your support of this proposed rate adjustment and thank

1956
03:45:32,419 --> 03:45:35,786
you all so much for your time and consideration. Thank you. >> mayor jones: thank you. That was our final speaker. Is there a motion to approve

1957
03:45:39,886 --> 03:45:43,152
item 9 so we may begin council discussion? >> I make a motion to approve. >> second. >> mayor jones: great.

1958
03:45:49,119 --> 03:45:52,986
we'll move on to council discussion. There's going -- we're each going to share our comments. But I'm not going to bury the lead because we've been

1959
03:45:57,452 --> 03:45:57,452
here a little bit later than we anticipated. The request before us is in

1960
03:46:04,552 --> 03:46:04,552
fact the cheapest option to our community and minimizes the risk that we know of at

1961
03:46:10,819 --> 03:46:10,819
this point to the greatest extent. Correct, mr. Puente?

1962
03:46:21,652 --> 03:46:21,652
>> yes, mayor.

1963
03:46:27,852 --> 03:46:27,852
four-year rate spread that allows us to do it in that manner.

1964
03:46:33,619 --> 03:46:33,619
the other options actually increased the rate increase for the third and the fourth

1965
03:46:38,919 --> 03:46:42,752
years if we just had a two-year rate increase. >> mayor jones: so this is the cheapest option for our community, keeps rates the lowest, and it minimizes the

1966
03:46:49,319 --> 03:46:49,319
risk that we know of. >> correct. >> mayor jones: so

1967
03:46:55,086 --> 03:46:55,086
delaying increases the risk to our community and increases the cost to our

1968
03:47:01,552 --> 03:47:01,552
community. >> both happen if we push this down the road, yes.

1969
03:47:05,586 --> 03:47:05,586
>> mayor jones: thank you. There's also been some question about previously

1970
03:47:14,252 --> 03:47:14,252
there was the -- at a time when saws decreased the rate so part of the angst now,

1971
03:47:19,319 --> 03:47:19,319
right, is we're faced with a rate increase in part to address what was a decrease

1972
03:47:25,386 --> 03:47:28,686
previously. Just to level set for the public and for some of my colleagues, would you please explain why that decrease took place?

1973
03:47:32,352 --> 03:47:32,352
>> saws was part of the reason why this community was able to grow the way it

1974
03:47:38,052 --> 03:47:38,052
grew the last few years, along with cps energy, along with programs that our city

1975
03:47:45,319 --> 03:47:45,319
puts in place when a lot of people were moving to san antonio and they moved

1976
03:47:49,352 --> 03:47:49,352
to san antonio. This influx of residents on the residential side caused

1977
03:47:55,586 --> 03:47:57,919
a lot of revenue coming into saws. It was more than what the cost of service was to provide them that service. Under state law we could

1978
03:48:04,586 --> 03:48:04,586
only charge what it cost us to provide that service. And so all that revenue is

1979
03:48:08,652 --> 03:48:08,652
coming in. We felt it was the right thing to do to come back to

1980
03:48:13,119 --> 03:48:13,119
council and say the residential rates are too high.

1981
03:48:18,619 --> 03:48:18,619
reduce them, please, and council unanimously voted to reduce them 11.7% on the

1982
03:48:24,852 --> 03:48:24,852
residential side. >> mayor jones: thank you. While I've got you, just

1983
03:48:28,919 --> 03:48:28,919
because, again, we just heard from toyota, it's fresh on the mind, sir, can

1984
03:48:33,552 --> 03:48:33,552
you go to slide 9. Can you point out which of these things here would

1985
03:48:43,186 --> 03:48:43,186
directly impact our ability to support a toyota expansion?

1986
03:48:50,219 --> 03:48:50,219
>> will 289.8-million-dollar water supply it's water recycle.

1987
03:48:58,186 --> 03:48:58,186
toyota means we're growing, toyota means we'll have more jobs, not just jobs in the

1988
03:49:02,852 --> 03:49:02,852
factory, but ancillary jobs throughout that area. More suppliers will come in,

1989
03:49:06,886 --> 03:49:06,886
more people will probably live closer to -- wanting to work closer to that area.

1990
03:49:12,152 --> 03:49:12,152
we're growing and we can't -- saws utilities cannot plan for a water

1991
03:49:18,519 --> 03:49:21,819
project one or two years in advance. It's long-term planning. The fact that toyota is coming today, I guarantee you they looked at our water

1992
03:49:27,019 --> 03:49:30,286
supply and wanted to know is that box checked, and it is checked. We want to continue to check that box and that's what that particular -- those

1993
03:49:37,786 --> 03:49:37,786
projects are for. >> mayor jones: delaying the rate increase threatens

1994
03:49:41,986 --> 03:49:45,186
our ability to provide the things that allow us to compete well for toyota. >> I believe so, mayor, yes. >> mayor jones: okay. Cecelia, it's not in the

1995
03:49:56,319 --> 03:49:59,819
slides, but I know you have it committed to memory. Can you level set again for us some of the fines that we would face if any of our water infrastructure

1996
03:50:05,252 --> 03:50:05,252
knowingly -- goes down, excuse me. >> so in relation to our

1997
03:50:10,819 --> 03:50:10,819
treatment water recycling centers, depending on if we were to receive permit

1998
03:50:16,586 --> 03:50:16,586
violations, we're talking about per day, right? So it could be $100,000 per

1999
03:50:24,019 --> 03:50:24,019
day if we had -- if there's violations. And if we had those on top

2000
03:50:28,752 --> 03:50:28,752
of each other, we had certain violations on top of each other, we've said it,

2001
03:50:33,486 --> 03:50:33,486
we provided it in our february b session responses, that we'd be

2002
03:50:38,652 --> 03:50:41,486
looking at another consent decree. At that point our last consent decree was $1.2 billion over 10 years. Corpus right now is in

2003
03:50:47,486 --> 03:50:47,486
excess of I believe $3 billion. Houston is in excess of

2004
03:50:55,719 --> 03:50:55,719
$5 billion. So at that point lie we were last time, we were required

2005
03:51:00,519 --> 03:51:00,519
to provide -- we were required to perform all of the activities that were

2006
03:51:05,386 --> 03:51:05,386
within that consent decree for our collections system, and that led us to have to

2007
03:51:11,619 --> 03:51:15,552
increase our sewer rates significantly over those 10 years. That would be required if we were to get into another consent decree as well, it

2008
03:51:20,152 --> 03:51:20,152
would be a requirement at that point from the federal government as well as not

2009
03:51:24,519 --> 03:51:24,519
just as needing those rates, but at that point it would be a requirement by federal

2010
03:51:28,652 --> 03:51:32,652
government that we would need those rates and move that forward. >> mayor jones: thank you. I see ed. Did you want to say

2011
03:51:37,652 --> 03:51:37,652
something? >> I wanted to caveat that and obviously saws performs

2012
03:51:43,052 --> 03:51:45,586
at a level where we are meeting our permit requirements right now. We will continue to do that as best we can. So autism of those things

2013
03:51:55,719 --> 03:51:55,719
about fines, would be theoretical if we were to have failure at the plant

2014
03:52:01,419 --> 03:52:04,586
and permit violations. I want to make sure that that's also clear. This isn't something that we're saying is absolutely going to happen.

2015
03:52:07,486 --> 03:52:07,486
these are all hypothetical, theoretical situations that we have seen in other cities

2016
03:52:21,986 --> 03:52:25,586
and we want to make sure that's understood. >> mayor, on the set of slides you talked about water supplies. On the wastewater side, we

2017
03:52:31,519 --> 03:52:31,519
are also looking at expanding our big wastewater treatment plant, the class

2018
03:52:36,386 --> 03:52:36,386
plant. As we grow, obviously we are water and wastewater, water

2019
03:52:41,686 --> 03:52:41,686
supply and wastewater, they both grow together, and this particular projects are also

2020
03:52:49,352 --> 03:52:49,352
to expand our claus plant. >> mayor jones: thank you. And thanks, edd, for ed.

2021
03:52:59,986 --> 03:53:03,152
if it were tomorrow it's not something we would be discussing, but I think laying out the full range of risks that relates to -- that's what your capital

2022
03:53:07,219 --> 03:53:07,219
project is based on, your worst to first, so addressing those risks helps

2023
03:53:12,319 --> 03:53:12,319
us to afford those fines. Not addressing the risks increases the odds of facing

2024
03:53:16,786 --> 03:53:19,886
those fines. So we want to know how expensive they could be, $100,000 a seems like a lot of cash that we don't need to spend.

2025
03:53:25,086 --> 03:53:28,652
thank you. Councilwoman viagran. >> viagran: thank you, mayor. San antonio is fortunate to have such strong utility

2026
03:53:33,319 --> 03:53:33,319
partners with both cps and saws that have consistently demonstrated a commitment to

2027
03:53:37,519 --> 03:53:41,019
serving our residents while maintaining responsible stewardship of our public resources. So I think the question -- I don't know if it's for you,

2028
03:53:47,252 --> 03:53:47,252
robert, or for andy or erik, if we postpone today, what does that do?

2029
03:53:52,186 --> 03:53:52,186
does that impact our credit rating and does that impact impact -- robert, you can

2030
03:53:57,252 --> 03:53:57,252
answer for y'all's credit rating. >> postponing means projects

2031
03:54:03,252 --> 03:54:03,252
become more expensive. It means that the rating agencies are looking as to

2032
03:54:07,819 --> 03:54:07,819
why was it postponed. What are the circumstances of that postponement.

2033
03:54:13,152 --> 03:54:13,152
the credit agencies are already looking at us because of the fact that a

2034
03:54:20,219 --> 03:54:20,219
20-year tenured cfo retired, they look at those things. They want to see continuity,

2035
03:54:24,952 --> 03:54:24,952
they want to see how you're replacing those individuals. We want to see assurances so

2036
03:54:30,386 --> 03:54:30,386
that they can tell the bond hold -- the bondholders that saws is a good credit risk.

2037
03:54:38,552 --> 03:54:38,552
so delay is something we would have to explain, not only because our owner is

2038
03:54:43,019 --> 03:54:43,019
asking for a delay, but because of the increased costs that we're now going

2039
03:54:49,552 --> 03:54:53,286
to have to address because of the delay. >> viagran: erik, would that impact our bond rating? >> maybe indirectly, councilwoman.

2040
03:54:59,619 --> 03:54:59,619
we do the annual ratings with the agencies in july. The last seven or eight

2041
03:55:07,319 --> 03:55:07,319
years since I've been city manager, we generally don't get a lot of questions about

2042
03:55:12,619 --> 03:55:12,619
the utilities, cps or saws, but that's not to say that they couldn't ask us.

2043
03:55:17,352 --> 03:55:20,519
>> viagran: okay. I just wanted to get some information on that. And then, robert, the last time you were out up here when we did a rate

2044
03:55:25,552 --> 03:55:25,552
adjustment, and I think that was for our business community, that was in 2002

2045
03:55:31,419 --> 03:55:34,686
or 2003? >> the last full rate increase we had was in 2015, but it was a five-year rate increase for vista ridge. So it was 2015, it ended in

2046
03:55:42,952 --> 03:55:42,952
2020. >> viagran: okay. And that's when we looked

2047
03:55:47,952 --> 03:55:47,952
netflix and we kind of reduced the rates -- >> that was in 2022.

2048
03:55:53,552 --> 03:55:53,552
>> viagran: 2022. I thank the board for being here today.

2049
03:55:57,619 --> 03:55:57,619
and pat hasso, who was a past board member, she would constantly tell me you

2050
03:56:04,119 --> 03:56:04,119
need -- saws needs help, saws needs help. And preparing me and

2051
03:56:08,752 --> 03:56:08,752
understanding that, yes, we are going to make that adjustment today, but

2052
03:56:14,419 --> 03:56:17,752
eventually we are going to need to get to the point where we will need to have a rate adjustment for residential. So I think -- this is not

2053
03:56:22,352 --> 03:56:22,352
new to me. We knew that this was coming after the pandemic.

2054
03:56:28,652 --> 03:56:28,652
saws has identified the need to adjust the current water and wastewater rate,

2055
03:56:33,586 --> 03:56:37,552
structures to meet projected revenue requirements and maintain the long-term fiscal health of their utility system, and we are the rate approvers.

2056
03:56:42,186 --> 03:56:42,186
this is our policy, this is what we do. We do not sit on the board.

2057
03:56:47,286 --> 03:56:47,286
when I did get a elected, there was talk of hey, why don't you sit on the boards

2058
03:56:52,486 --> 03:56:56,186
of the utilities? I was like no, there needs to be a clear separation between the council as the owner, what we do, and the board, in terms of the

2059
03:57:01,219 --> 03:57:01,219
responsibilities you have. And I do want to applaud you because I feel like we're

2060
03:57:05,452 --> 03:57:08,719
not showing appreciation for you in your efforts and what you've done. So thank you so much for your service. I understand that it's been

2061
03:57:12,219 --> 03:57:12,219
thoughtful. The fact that the city, because I see troy standing

2062
03:57:16,286 --> 03:57:16,286
there -- robert, I'm going to ask troy a question now. Troy, you know what I think

2063
03:57:22,686 --> 03:57:22,686
of your work and how great I think it is. So your work saw very

2064
03:57:27,586 --> 03:57:27,586
minuscule changes with what they brought forward in terms of that rate increase

2065
03:57:33,186 --> 03:57:36,386
for their need? >> it's consistent with what mr. Puente mentioned in his slide deck. We looked at the items on the o&m side and made

2066
03:57:39,919 --> 03:57:42,286
recommendations that they adjust that and we're in agreement with those recommendations. >> viagran: thank you. So the story I want to tell

2067
03:57:46,686 --> 03:57:46,686
and as we tell the southside story, and while it's like -- I appreciate you

2068
03:57:52,719 --> 03:57:52,719
saying these were all hypotheticals. However -- y'all know where

2069
03:57:58,019 --> 03:57:58,019
I'm going with this. Mitchell lake. Everything from the north

2070
03:58:04,586 --> 03:58:04,586
flowed south and we found ourselves in a crisis. With

2071
03:58:09,419 --> 03:58:09,419
the federal government. And saws came in and they had to make the adjustments,

2072
03:58:13,919 --> 03:58:13,919
and they have to stay within regulations. And they have been doing

2073
03:58:17,952 --> 03:58:17,952
that consistently. So you never know when this is going to happen.

2074
03:58:24,786 --> 03:58:24,786
I sit on the southside that sees tremendous development. Everything annexed in.

2075
03:58:29,652 --> 03:58:29,652
and robert, you and I have this conversation all the time, and my team has the

2076
03:58:34,352 --> 03:58:34,352
conversation with your staff. All that was service on the

2077
03:58:40,819 --> 03:58:44,652
southside was bexarmet. We didn't know what bexarmet was doing. So when saws took over in 2012 they weren't sure what was where.

2078
03:58:49,486 --> 03:58:49,486
I have properties still on wells, I have properties on septic tanks

2079
03:58:57,519 --> 03:59:01,219
because we don't have the infrastructure in part of the southern sector. When I go to my neighborhood associations, which is where I had most of the team go to

2080
03:59:04,552 --> 03:59:04,552
talk about this rate adjustment, they were like, does that mean you're going

2081
03:59:11,019 --> 03:59:11,019
to address xyz? And they understood that this is what this rate

2082
03:59:15,652 --> 03:59:15,652
adjustment meant. That we were able to maintain the service and

2083
03:59:20,986 --> 03:59:20,986
address the problems that we had because of our aging infrastructure.

2084
03:59:26,652 --> 03:59:26,652
pecan valley, I was with them before a few weeks ago. They understood this because

2085
03:59:34,186 --> 03:59:34,186
they want their pipes fixed. They want to have -- they want newer pipes.

2086
03:59:40,286 --> 03:59:43,886
they want newer meter systems. That's what they want there. And that is why, for me, I ask my council to support this because my residents

2087
03:59:48,419 --> 03:59:48,419
are in need of this. You can come with the story how this doesn't have that

2088
03:59:55,952 --> 03:59:55,952
or they're still on septic tanks or this is that. Yes, because they were on a

2089
04:00:02,752 --> 04:00:02,752
completely different system. It was called bexar met. Public works is trying to be

2090
04:00:09,286 --> 04:00:12,819
as strategic as possible. I don't want to delay this. I don't want to put this off I don't want to make this more expensive by waiting a while to do this.

2091
04:00:17,419 --> 04:00:21,219
I wish I had told you no when you told me we were going to reduce the rates. If I could go back in a time machine, I would. But it just made sense there

2092
04:00:26,619 --> 04:00:26,619
because we were coming out of a pandemic and we thought that this would be a good

2093
04:00:32,652 --> 04:00:32,652
break for our ratepayers. I knew this wouldn't last forever.

2094
04:00:38,186 --> 04:00:38,186
I knew what was coming on the south side but we were taking it in increments as

2095
04:00:42,219 --> 04:00:44,952
development comes. Thank you, business community and the developers that signed on. Because y'all are here and y'all are there because

2096
04:00:49,519 --> 04:00:49,519
you're like for the time after the pandemic, y'all have put forward and done

2097
04:00:53,886 --> 04:00:57,519
what you could for new development. But there is a price where we need to get our residential ratepayers to put in to have a bigger

2098
04:01:02,719 --> 04:01:02,719
voice. So, I'll be approving this today.

2099
04:01:09,019 --> 04:01:09,019
I understand that there are other issues -- and I hear I'm voting this way because

2100
04:01:15,586 --> 04:01:18,552
of the leaks, because of that. But my confidence is in city staff. My confidence is in the board.

2101
04:01:20,186 --> 04:01:20,186
my confidence is in that robert brought us vista ridge when we needed it and

2102
04:01:26,086 --> 04:01:29,452
we can have that conversation and we can have the accountability we need, we just need to get in the room and have conversations about that.

2103
04:01:34,686 --> 04:01:38,686
so I am moving forward today knowing that we have old infrastructure. We need to address that. And if we want equity infrastructure, it takes

2104
04:01:44,352 --> 04:01:44,352
investment. And I need to have the residents, the ratepayers

2105
04:01:50,919 --> 04:01:50,919
with skin in the game. Because if they don't, they will not take it seriously

2106
04:01:56,219 --> 04:01:56,219
about water conservation, about how they maintain their own pipes.

2107
04:02:02,152 --> 04:02:02,152
and when they invest -- and I can't explain to you how pecan valley was encouraged

2108
04:02:11,719 --> 04:02:15,652
to hear about this. Changes were coming. We were identified, south side, southeast side was identified as an area that needed significant

2109
04:02:19,952 --> 04:02:19,952
investment, is that they understood, okay. And then we can plan for our

2110
04:02:24,952 --> 04:02:24,952
homes and our pipes and our plumbing in our house. But they don't want to make

2111
04:02:29,586 --> 04:02:29,586
that investment if they know they're going into pipes that may or may not work.

2112
04:02:35,819 --> 04:02:39,786
or it's going to dig up again. So the decisions we make today will shape the quality of life for future generations.

2113
04:02:43,952 --> 04:02:43,952
our focus should remain on creating a resilient, sustainable future for all

2114
04:02:51,586 --> 04:02:53,819
residents. We know we need the flexibility. I need y'all to be fluid in the decisions you could make, robert, and that's why

2115
04:02:57,719 --> 04:02:57,719
any conversation of being very rigid on how we do things does not help, as we

2116
04:03:03,186 --> 04:03:03,186
are ten different districts with ten different needs. Thank you, mayor.

2117
04:03:10,052 --> 04:03:12,519
>> mayor jones: thank you. Councilmember alderete gavito. >> gavito: thank you. I'll keep my comments short. I know I have not been

2118
04:03:17,252 --> 04:03:17,252
confident in saws' plan throughout this process and today my concerns remain.

2119
04:03:21,619 --> 04:03:21,619
I cannot vote yes on the current proposal until there has been a level of

2120
04:03:25,886 --> 04:03:29,686
accountability from saws. For me, it is hard to approve a proposal that increases salaries for execs and staff, adds positions, all the while the city just

2121
04:03:38,652 --> 04:03:42,586
got out of a conversation of us potentially having to cut our city staff. And it's hard for me to accept this proposal while water is still running down

2122
04:03:46,752 --> 04:03:46,752
our streets. And while it places the burden on residents in this

2123
04:03:52,286 --> 04:03:56,086
unforgiving economy. It still boggles my mind that we wouldn't wait to have this rate increase discussion before we have the results of our audit

2124
04:04:00,552 --> 04:04:00,552
that my colleagues and I have asked for. I feel that there are major

2125
04:04:08,052 --> 04:04:10,752
operational inefficiencies that saws needs to work through. And these operational inefficiencies could potentially save cash and

2126
04:04:15,586 --> 04:04:15,586
reduce the need for us to ask the residents to pay for it.

2127
04:04:19,752 --> 04:04:19,752
I'm open to continuing the discussion down the line once these issues have been

2128
04:04:24,219 --> 04:04:24,219
addressed. I think you saw in a lot of the chambers' letters -- I

2129
04:04:28,752 --> 04:04:32,019
do want to thank the business community and the chambers. But still there was that sentiment of accountability needs to be had at saws.

2130
04:04:36,852 --> 04:04:36,852
there's that theme there. You know, I am happy -- I am open to having the

2131
04:04:44,686 --> 04:04:44,686
discussion once these inefficiencies have been addressed.

2132
04:04:48,952 --> 04:04:48,952
I was happy to collaborate with my colleagues to come up with a list of action

2133
04:04:53,586 --> 04:04:53,586
items for saws to work through prior to coming back, maybe later october or

2134
04:04:58,052 --> 04:04:58,052
whenever y'all come back. This list includes basic things like addressing water

2135
04:05:03,986 --> 04:05:03,986
leaks and making sure that saws does not leave streets that the city of san antonio

2136
04:05:08,352 --> 04:05:08,352
spends really, really good money on and saws later comes back and does some --

2137
04:05:14,219 --> 04:05:14,219
fixes a pipe or whatever -- and leaves the street in disrepair.

2138
04:05:18,752 --> 04:05:18,752
that all impacts our residents' daily lives. And so, you know, we need to

2139
04:05:23,486 --> 04:05:23,486
take that into consideration. And also again, I'm going to

2140
04:05:27,719 --> 04:05:27,719
hone in on happy to have the conversation once we have the findings of the audit.

2141
04:05:33,252 --> 04:05:33,252
again, look forward to having a more thorough conversation once a good

2142
04:05:40,819 --> 04:05:42,886
plan is presented and we'll wait to see when that happens. Thank you. >> mayor jones: robert, if you would like to respond

2143
04:05:47,486 --> 04:05:47,486
and then I would like to have the chair come up and speak to the audit piece.

2144
04:05:59,852 --> 04:05:59,852
>> thank you, mayor, council. So a lot has been said about

2145
04:06:05,052 --> 04:06:05,052
requesting us to do an efficiency audit. I have a different

2146
04:06:10,519 --> 04:06:13,086
recollection of that process. I was asked specifically at a b session if we had ever done an efficiency audit. And they referenced the cps

2147
04:06:21,819 --> 04:06:24,786
energy efficiency report, efficiency review. And my response to the council -- I believe it was councilman whyte at that time -- was no, we had not.

2148
04:06:28,486 --> 04:06:28,486
and the reason we had not was because of the ongoing, very robust benchmarking

2149
04:06:34,519 --> 04:06:34,519
that saws has and continues to have on every one of the areas that the cps energy

2150
04:06:42,252 --> 04:06:42,252
efficiency review covered. So we look at that on an annual basis.

2151
04:06:48,319 --> 04:06:48,319
it informs the executive and mission alignment, which handles compensation and

2152
04:06:52,486 --> 04:06:52,486
creates the scorecard for the organization every year. We look at that benchmark

2153
04:06:57,252 --> 04:06:57,252
data and we use it to inform the targets that we set for the performance of the

2154
04:07:03,319 --> 04:07:03,319
organization on an annual basis. And so I brought the cps

2155
04:07:08,786 --> 04:07:12,452
energy efficiency review with me today. So when I look at that table of contents, it covers exactly the benchmark areas that saws already conducts

2156
04:07:17,452 --> 04:07:17,452
today. The blind spot we had -- and I had a meeting with

2157
04:07:24,186 --> 04:07:24,186
districts 10, 7, and 1 in 2020. They shared with me a great

2158
04:07:28,652 --> 04:07:28,652
deal of concern they had related to the capital planning and delivery and

2159
04:07:33,886 --> 04:07:33,886
interface with public works. We didn't have a capital department at that time.

2160
04:07:38,952 --> 04:07:38,952
it had been collapsed into public works. And they shared with me some

2161
04:07:44,986 --> 04:07:44,986
very specific concerns they had regarding our interface with the city and how we

2162
04:07:49,619 --> 04:07:49,619
were delivering capital. And as a result of that, that feedback, feedback I

2163
04:07:54,286 --> 04:07:54,286
was receiving from the community in that same realm and after the discussion

2164
04:07:59,686 --> 04:07:59,686
with me about the need for an efficiency review or an audit, as they say, we

2165
04:08:06,852 --> 04:08:06,852
created -- we did a number of things. We engaged our consultant to

2166
04:08:12,919 --> 04:08:12,919
look at our capital planning and delivery process. We had them specifically

2167
04:08:18,452 --> 04:08:21,452
look at our coordination with the city of san antonio. I'm happy to say, as a result of that meeting, I met with the city manager

2168
04:08:26,686 --> 04:08:26,686
and asked why was the capital projects division and public works collapsed

2169
04:08:31,319 --> 04:08:31,319
and why were processes that we established as early as 2007 no longer being done?

2170
04:08:36,252 --> 04:08:36,252
I didn't realize they weren't being done. So, as a result of that, we

2171
04:08:40,586 --> 04:08:40,586
created the mou that we entered in with the city over two years ago that

2172
04:08:45,586 --> 04:08:48,352
outlines how we classify projects. Once we determine the projects are in an area where the city or saws do not have builts, we engage

2173
04:08:55,686 --> 04:08:59,252
the process so we can know as much as we can early on and include that information in the design and construction process so we know exactly what we're

2174
04:09:02,052 --> 04:09:02,052
paying for. So that's been in effect. I think the marbach project

2175
04:09:06,986 --> 04:09:06,986
is probably one of the first projects where the mou is now being implemented in

2176
04:09:11,286 --> 04:09:11,286
that project. The second thing the board did was create a capital

2177
04:09:15,386 --> 04:09:15,386
oversight committee of the board of trustees at saws in anticipation of implementing

2178
04:09:22,786 --> 04:09:22,786
the most complex and the largest capital program that we've seen in many years.

2179
04:09:28,119 --> 04:09:28,119
so the consent decree was very different. It was all wastewater

2180
04:09:32,486 --> 04:09:32,486
piping. This includes wastewater treatment, wastewater

2181
04:09:36,652 --> 04:09:36,652
distribution, water distribution, water supply. It is a very complex and

2182
04:09:41,119 --> 04:09:45,052
long-term capital program. And so we think the work that we're doing with the consultant is very timely as we final this four-year program.

2183
04:09:51,086 --> 04:09:51,086
we've already seen some initial recommendations presented to the board

2184
04:09:55,152 --> 04:09:58,686
oversight committee. The board oversight committee has some additional work that they're asking that consultant to complete.

2185
04:10:01,619 --> 04:10:01,619
we are anticipating that this program will be approved so we can final the

2186
04:10:05,886 --> 04:10:08,586
recommendations from that consultant. And when the committee has done its work, the plan is to present that plan to the board so we will know what

2187
04:10:14,019 --> 04:10:14,019
the implementation process, the options we have for delivery of that program.

2188
04:10:20,019 --> 04:10:20,019
the timing and the sequential processes that we need to consider to

2189
04:10:24,419 --> 04:10:27,286
successfully deliver this project on time and on budget. >> mayor jones: thank you, chair. Erik, did you want to say

2190
04:10:37,552 --> 04:10:37,552
something? >> walsh: no. It's not pertinent to the

2191
04:10:41,819 --> 04:10:41,819
matter before the council. I disagree about how we got there but I think the point

2192
04:10:45,986 --> 04:10:45,986
is we have an mou with saws that better coordinates, and frankly now has saws as a

2193
04:10:54,586 --> 04:10:57,619
signatory on those high-profile contracts. Which was the thing that needed to happen. But that's not pertinent to y'all's conversation.

2194
04:11:02,119 --> 04:11:02,119
>> mayor jones: thank you. Councilmember meza gonzalez. >> gonzalez: thank you,

2195
04:11:10,686 --> 04:11:13,919
mayor. Thank you for the presentation and to saws and your team for getting us here as well as our team at the city.

2196
04:11:19,452 --> 04:11:23,019
troy and your team, thank you so much. Every resident, I think regardless of what district you're from in this city, wants two things and I have

2197
04:11:28,819 --> 04:11:28,819
heard this from my constituents. They want water they can

2198
04:11:33,519 --> 04:11:36,452
depend on and water they can afford. Most of the time the systems that support them seem invisible, right up until a main breaks, a bill spikes,

2199
04:11:42,986 --> 04:11:46,786
or a weather event overwhelms a system that wasn't prepared for it. This vote in front of us is keeping both of those promises to san antonio at

2200
04:11:51,052 --> 04:11:54,286
the same time. I don't think any household should have to choose between an essential service and the rest of their budget.

2201
04:11:56,919 --> 04:11:56,919
I'm encouraged by the joint recommendation the city and saws has brought forward.

2202
04:12:01,819 --> 04:12:01,819
it takes the needs of our residential ratepayers seriously while still giving

2203
04:12:07,219 --> 04:12:10,919
saws the resources to do the work our city genuinely needs. A couple of -- few clarifying questions. On the capital efficiency

2204
04:12:15,286 --> 04:12:18,619
study, when was that conducted and when was it finalized? >> puente: the capital efficiency study was started earlier this year.

2205
04:12:22,419 --> 04:12:22,419
it's not finalized. Phase 1 is complete. There's another phase

2206
04:12:27,452 --> 04:12:27,452
coming. What our board wants to do is have this capital

2207
04:12:31,819 --> 04:12:35,219
committee that our chairwoman talked about. Look at it, address the things, ask the questions, and then go on to the full board for their acceptance

2208
04:12:40,286 --> 04:12:43,786
and approval. >> gonzalez: and of the recommendations it's produced, which has saws already implemented and which remain outstanding?

2209
04:12:47,619 --> 04:12:51,352
>> puente: well, they didn't make any specific recommendations yet, and that's what phase 2 is about. But what they did address

2210
04:12:54,186 --> 04:12:54,186
was the challenges that we're going to have and that other utilities are having.

2211
04:13:08,286 --> 04:13:08,286
and that is the -- >> mayor jones: slide 4. >> puente: focus on

2212
04:13:14,119 --> 04:13:14,119
governance, communication, strategic planning, and stakeholder engagement.

2213
04:13:21,586 --> 04:13:25,219
it's preliminary recommendations there at the bottom. Those are the initial findings that they have that they want us to look at and

2214
04:13:30,852 --> 04:13:34,219
address. >> gonzalez: is it too soon to ask this question? Do we think there would be any additional savings in phase 2 that could ease

2215
04:13:39,419 --> 04:13:39,419
future rate pressure? >> puente: I don't know. But it is safe to say, in my

2216
04:13:46,786 --> 04:13:46,786
opinion, that when you look at those things, those preliminary recommendations,

2217
04:13:53,319 --> 04:13:56,319
strategic planning. Does that necessarily save money today? It's planning into the future. Governance.

2218
04:13:58,352 --> 04:13:58,352
how do we report back how we're doing to the board and to council and to the

2219
04:14:04,152 --> 04:14:04,152
community? So those savings are more efforts that are long term

2220
04:14:08,952 --> 04:14:08,952
and the savings, therefore, are long term. >> gonzalez: thank you.

2221
04:14:13,452 --> 04:14:13,452
as we start talking about our next bond, which we've started already with

2222
04:14:19,152 --> 04:14:19,152
preliminary discussions. Saws needs the capacity to be able to replace mains at

2223
04:14:23,319 --> 04:14:23,319
the same time that we do our street reconstruction projects.

2224
04:14:27,786 --> 04:14:27,786
and so my question is for art. If saws does not have the

2225
04:14:32,319 --> 04:14:32,319
financial capacity to replace mains at the time of our reconstruction projects,

2226
04:14:37,052 --> 04:14:37,052
how would that impact our projects at the city? >> hi, councilwoman.

2227
04:14:45,352 --> 04:14:49,019
as far as planning for the bond program and how saws does that, they can answer that. The city has the bond program as well as our

2228
04:14:52,119 --> 04:14:55,952
annual street maintenance programs. And so on the bond project, saws typically joint bids with us on that and they can plan for that as the bond

2229
04:14:59,819 --> 04:15:03,719
program gets developed. As we're talking about the 2027 bond program through capital delivery, they will be looking and planning for that.

2230
04:15:07,352 --> 04:15:11,219
on the operating side for public works through our annual street maintenance program projects, that's where we've seen in times, as we ramp up our funding,

2231
04:15:17,119 --> 04:15:17,119
saws has a priority level. They work through a tiered level on how they replace

2232
04:15:21,352 --> 04:15:21,352
their projects. That's where sometimes we may need to move forward to

2233
04:15:25,452 --> 04:15:25,452
replace the pavement on an old line because it's not at the same priority on the

2234
04:15:31,119 --> 04:15:31,119
saws side. >> gonzalez: can you explain that last part?

2235
04:15:36,386 --> 04:15:36,386
>> as we are doing our mill and overlay projects, that's where we have conversations

2236
04:15:42,286 --> 04:15:42,286
with saws, are they going to replace an aging water or sewer line.

2237
04:15:48,952 --> 04:15:48,952
they have a tiered program. As we consider our annual programs, saws has to make a

2238
04:15:53,952 --> 04:15:57,952
decision if they have the capital to proceed with the replacements or if we will just proceed with replacing the pavement on top of older lines.

2239
04:16:02,652 --> 04:16:06,486
>> gonzalez: okay. I think a lot of my colleagues have shared this that we expect saws to replace their aging infrastructure, right?

2240
04:16:13,586 --> 04:16:13,586
and especially at a time when we do large projects, to prevent having them

2241
04:16:18,419 --> 04:16:22,352
ripped up again. In delaying this, I feel we're saying opposite of what we are all expecting when we talk about this coordinated effort with

2242
04:16:26,619 --> 04:16:28,986
projects. That we want this coordination but we're not going to give you the tools to do that such coordination.

2243
04:16:34,986 --> 04:16:34,986
and so I just want -- I mean, I know that I'm thinking about that because

2244
04:16:39,352 --> 04:16:39,352
as I was sitting here thinking about bond projects and thinking of this was a

2245
04:16:43,486 --> 04:16:43,486
city department, it would us basically be saying public works, you hold off on all

2246
04:16:49,619 --> 04:16:49,619
your capital projects but everyone else keep moving. None of that can happen.

2247
04:16:53,952 --> 04:16:53,952
it all has to happen at the same time for us to keep that goal of coordination.

2248
04:17:00,652 --> 04:17:00,652
and so I think for me I am approving this proposal and want this to move forward

2249
04:17:07,219 --> 04:17:07,219
today because I think water and wastewater serve as the baseline that lets every

2250
04:17:13,886 --> 04:17:17,186
home, school, business in this city function. And the longer we wait to invest in it the more expensive it becomes and the more we put at risk.

2251
04:17:22,219 --> 04:17:22,219
again, I think what makes this a clear decision for me is that this does not ask

2252
04:17:26,586 --> 04:17:26,586
our residents carry that weight alone. The agreement between the

2253
04:17:31,986 --> 04:17:31,986
city and saws lowers the increase our residential households would otherwise

2254
04:17:36,786 --> 04:17:40,352
have faced while still equipping saws to deliver the improvements our growing city demands. I believe this is a fair balance that puts our

2255
04:17:42,886 --> 04:17:46,386
residents first and that's why I will be approving this increase. Thank you. >> mayor jones: thank you. Councilwoman castillo.

2256
04:17:54,952 --> 04:17:58,719
>> castillo: thank you. Thank you, robert for the presentation. I'm going to emphasize what I stated during the last briefing that we know our

2257
04:18:03,719 --> 04:18:03,719
residents deserve access to clean water whenever they turn on the tap, and

2258
04:18:08,986 --> 04:18:08,986
reliable water infrastructure is public health.

2259
04:18:13,552 --> 04:18:13,552
the proposed projects are necessary to avoid sewer overflows, boil-water

2260
04:18:18,086 --> 04:18:21,919
notices, water supply issues, service interruptions, pipeline failures, and costly regulatory violations. As I've emphasized before,

2261
04:18:27,786 --> 04:18:31,786
delaying the projects will increase costs at the risk of public health issues as well. Saws rate structure is equitable and ensures every

2262
04:18:34,719 --> 04:18:34,719
family has access to safe and affordable water. Saws is also increasing

2263
04:18:38,886 --> 04:18:42,686
funding for its assistance program. I'm hearing many of the concerns and hearing the emphasis on accountability. But what I want to encourage

2264
04:18:46,419 --> 04:18:46,419
is for folks to sit with the 2025 water management plan that your team has laid out

2265
04:18:51,852 --> 04:18:55,686
and presented to council. I would like to understand what are the components that this body would like maybe increased? I appreciate the plan in

2266
04:18:59,219 --> 04:19:02,452
terms of water detection, addressing leaks. And many of the recommendations, many of which are already in practice, is to ensure we're

2267
04:19:06,419 --> 04:19:06,419
hiring more personnel to go out and detect water leaks before it turns into more

2268
04:19:11,052 --> 04:19:11,052
gallons out on the road. Again, highlighting that it takes personnel and it takes

2269
04:19:15,952 --> 04:19:15,952
resources to address those capital improvements. So just want to commend you

2270
04:19:20,152 --> 04:19:20,152
and your team for the 2025 water management plan and laying out the direction and

2271
04:19:25,286 --> 04:19:25,286
the needs of saws. But in addition to that, we can't expect you all to do

2272
04:19:31,086 --> 04:19:31,086
more with less. And clean water is a scarce resource and should be

2273
04:19:36,752 --> 04:19:36,752
protected and not commodified. That's what I value about

2274
04:19:40,986 --> 04:19:40,986
the leadership of your board is ensuring that we ensure that everyone that needs

2275
04:19:46,486 --> 04:19:46,486
water access continues to have the access to quality water.

2276
04:19:50,952 --> 04:19:50,952
but I don't have any current questions. The presentation made it

2277
04:19:56,552 --> 04:19:56,552
very clear. But I did want to pivot over to some of the public health

2278
04:20:01,252 --> 04:20:04,752
aspects. So erik, if I may, I did have a couple of questions for metro health in terms of understanding the public health importance of

2279
04:20:10,852 --> 04:20:14,819
preventing contamination events like boil-water notices and service interruptions. If someone can help walk us through how reliable systems

2280
04:20:20,919 --> 04:20:24,886
protect vulnerable populations such as children, seniors, and people with compromised immune systems. >> all right.

2281
04:20:29,552 --> 04:20:29,552
ththank you, councilwoman castillo. Just know that dr. Jacob

2282
04:20:35,819 --> 04:20:35,819
representing metro health and I'm joined by dr. Woo. In short, just know that our

2283
04:20:44,386 --> 04:20:46,419
task is making sure that safe drinking is critical to public health. As we talk about the public health function, our mandate is to ensure conditions

2284
04:20:51,452 --> 04:20:51,452
where all can be healthy. For our more vulnerable populations, having reliable

2285
04:20:57,552 --> 04:21:01,419
water service is very important for residents likely to be affected by water quality issues to avoid preventable illnesses. Much of the material removed

2286
04:21:08,019 --> 04:21:08,019
from municipal water supplies cause diarrheal illness.

2287
04:21:16,186 --> 04:21:16,186
those can progress to severe dehydration and hospitalization, possibly .

2288
04:21:20,452 --> 04:21:20,452
in the end, the integrity of the system is important. That's why we want to make

2289
04:21:25,052 --> 04:21:25,052
sure that in concert with the public works department, the saws, we provide any

2290
04:21:30,286 --> 04:21:30,286
technical assistance as your local health department. >> castillo: thank you,

2291
04:21:36,452 --> 04:21:40,419
dr. Jacob and dr. Woo. Can you all provide some examples from other communities where underinvestment in water systems have led to

2292
04:21:43,052 --> 04:21:43,052
significant health concerns? >> I would say the clearest example is what happened in

2293
04:21:48,686 --> 04:21:48,686
flint, michigan not too long ago. They are a decade into

2294
04:21:53,119 --> 04:21:53,119
recovery efforts. In flint, michigan that showed the impacts of

2295
04:21:57,552 --> 04:22:01,219
divestments. Just acknowledging at least the clearest public health example that we have been talking about in this century.

2296
04:22:02,852 --> 04:22:06,252
that happened not that long ago. I don't know if there's anything else you want to add. >> castillo: thank you,

2297
04:22:11,252 --> 04:22:15,086
dr. Jacob and dr. Woo. I thought it was important for us to emphasize that connection of water being public health. And it's a non-renewable

2298
04:22:20,452 --> 04:22:22,852
resource. Potable water is a non-renewable resource. I appreciate the work and you all sharing that context for my colleagues and I.

2299
04:22:28,419 --> 04:22:28,419
and that context is important because as councilwoman viagran has

2300
04:22:32,452 --> 04:22:32,452
laid out, the water runs south and it is areas that do not have water and/or

2301
04:22:40,086 --> 04:22:42,386
sewage connections. And I'm grateful again with the coordination with saws, we have been able to work through those issues, find a solution to pilot and

2302
04:22:47,319 --> 04:22:47,319
increase funding for laterals to the people. Identifying the issues --

2303
04:22:53,286 --> 04:22:53,286
saws board came up with an issue we can support but all that to say failing to

2304
04:22:57,786 --> 04:22:57,786
invest in this infrastructure -- again, we just talked about how our

2305
04:23:02,052 --> 04:23:05,186
city is economically segregated. There are specific parts of the city of san antonio that are still waiting for basic infrastructure.

2306
04:23:10,152 --> 04:23:10,152
by delaying and putting off supporting saws with their rate adjustment is delayed

2307
04:23:15,119 --> 04:23:17,319
improvements to long-neglected parts of our city. >> puente: yes, councilwoman. I appreciate your questions

2308
04:23:20,152 --> 04:23:20,152
about public health. And there's been a lot of comments about

2309
04:23:24,186 --> 04:23:24,186
accountability. We are held accountable every single time someone

2310
04:23:28,252 --> 04:23:31,652
turns on their water to cook, to bathe, to do anything with water. We are held accountable. We do over a thousand lab tests a month, making sure

2311
04:23:39,219 --> 04:23:43,152
the water is safe for those specific purposes, protecting public health. >> castillo: thank you. I appreciate that, robert. Lastly, just reiterating the

2312
04:23:47,052 --> 04:23:50,186
point. We're seeing it with bond projects that we're still waiting to see complete. With our imp, cip, namp projects, the costs continue

2313
04:23:56,552 --> 04:23:56,552
to rise and with these large-scale capital improvement projects, a

2314
04:24:01,152 --> 04:24:01,152
delay or kicking the can further down the road can mean a rate increase in a

2315
04:24:08,452 --> 04:24:08,452
month or a year and improving the services our constituents deserve.

2316
04:24:13,352 --> 04:24:13,352
>> mayor jones: in case it informs the comments of my remaining colleagues, those

2317
04:24:18,652 --> 04:24:18,652
that have asked for or considering a delay, do you have an operational risk

2318
04:24:23,552 --> 04:24:23,552
assessment that would help us understand the risks to our community as a result of

2319
04:24:28,052 --> 04:24:28,052
those delays? Potential delays, excuse me. >> puente: not a specific

2320
04:24:34,419 --> 04:24:38,219
operational risk, a formal one. But we recognize the fact that we have been running the system for this period of time.

2321
04:24:40,752 --> 04:24:44,119
that these delays will happen. For example, we have had a very wet spring. Rain causes more flow that goes into our plants, which

2322
04:24:50,252 --> 04:24:50,252
causes it to be potentially a violation because of so much going in.

2323
04:24:55,519 --> 04:24:55,519
our plants have to be able to accept a certain amount of million gallons per day.

2324
04:25:00,452 --> 04:25:04,019
and so that's an operational risk. If we are not able to expand our treatment plant. So yes, it's not a formal assessment of the risks

2325
04:25:09,019 --> 04:25:09,019
involved but we know what those risks are if we're not able to fund these projects

2326
04:25:15,119 --> 04:25:15,119
that we have online. >> mayor jones: okay. Thank you for clarifying

2327
04:25:20,186 --> 04:25:22,719
that. >> puente: oh, definitely. >> mayor jones: it sounds like there are some folks on

2328
04:25:26,019 --> 04:25:26,019
this dais that are contemplating a delay, absent an understanding of

2329
04:25:32,186 --> 04:25:32,186
the operational risks to our community. Which exacerbate potentially

2330
04:25:38,419 --> 04:25:38,419
some of the public health risks just identified by dr. Jacob, correct?

2331
04:25:42,719 --> 04:25:45,419
>> puente: you're absolutely correct. >> mayor jones: asking for a delay and not understanding the operational risk is where

2332
04:25:47,819 --> 04:25:47,819
we're at. >> puente: yes. It's very -- we're treading

2333
04:25:52,719 --> 04:25:55,819
on where we don't want to go. We want to be able to take care of our system. We have identified the projects that will keep us

2334
04:25:59,152 --> 04:25:59,152
in compliance. The projects that will continue to allow us to grow

2335
04:26:04,519 --> 04:26:08,186
the projects that we need to invest in. It costs more to continue to maintain them than to actually improve them and rehabilitate them.

2336
04:26:13,119 --> 04:26:16,852
>> mayor jones: I want to make the point because it really parallels what we just discussed with the budget, which was -- that was a numbers exercise but

2337
04:26:20,519 --> 04:26:20,519
we have yet to understand the true impacts of some of those cuts.

2338
04:26:25,619 --> 04:26:29,419
similarly here, folks are contemplating a delay without understanding the impacts of what a delay would mean, beyond the cost. Go ahead, chair.

2339
04:26:37,352 --> 04:26:40,952
>> mayor, can I add something? Plans for all of the systems at saws. And so from that standpoint,

2340
04:26:43,919 --> 04:26:43,919
we are very aware and feel obligated, now that we know the condition and the

2341
04:26:51,219 --> 04:26:51,219
assessment for our water/wastewater infrastructure.

2342
04:26:55,419 --> 04:26:55,419
and we know the worst first. And that was the basis for the direction to staff to

2343
04:27:01,552 --> 04:27:01,552
create this program. Because we are aware that much of the infrastructure

2344
04:27:07,619 --> 04:27:07,619
is ready for replacement. And so just the risk factor of knowing that information

2345
04:27:13,519 --> 04:27:13,519
and not being proactive and putting a program before the council to replace this

2346
04:27:21,219 --> 04:27:21,219
equipment is in and of itself not accountable or transparent.

2347
04:27:26,119 --> 04:27:26,119
so I just wanted to add the fact that for the past six years, the board present and

2348
04:27:33,352 --> 04:27:37,186
board prior has been evaluating all of these master plans for the various systems, treatment, production, distribution as well as the development of

2349
04:27:41,186 --> 04:27:44,019
the water development plan. I want to thank councilwoman castillo for recognizing that. Because it was a great deal of work that went into that.

2350
04:27:47,086 --> 04:27:47,086
it was delayed a bit because we wanted to incorporate the board target of the 50%

2351
04:27:55,986 --> 04:27:59,852
reduction of non-revenue water loss in that plan. It bears sharing with the council the effort that the board took to create this equitable plan focusing on

2352
04:28:04,552 --> 04:28:04,552
worst first. But there is operational risk knowing what's in those

2353
04:28:10,219 --> 04:28:10,219
master plans and not acting on them. >> mayor jones:

2354
04:28:17,686 --> 04:28:19,552
councilmember galvan. >> galvan: thank you, mayor. Thank you, robert, for the presentation today and for the saws teams for the

2355
04:28:24,519 --> 04:28:27,886
conversations we have had over the past several weeks and months. I appreciate all the follow-ups that you and the team have provided me over

2356
04:28:31,919 --> 04:28:31,919
this week and the past several weeks in questions I have raised here on the dais

2357
04:28:36,419 --> 04:28:39,019
and follow-up after, through communication with my residents. You know, rate increases are never something I take lightly.

2358
04:28:42,719 --> 04:28:46,419
I have been skeptical since the beginning. When we first came to council talking about the budget for saws overall. Kind of questioning some of

2359
04:28:51,319 --> 04:28:53,986
the rate structure and things like that. Went through those pieces with you all very diligently. Residents across the

2360
04:28:56,719 --> 04:28:56,719
district voiced their understanding of the critical need when the saws'

2361
04:29:03,119 --> 04:29:05,886
representatives would come out to the meetings. Understand the costs associated with it. Also wanted to understand how saws wanted to reduce

2362
04:29:11,452 --> 04:29:11,452
the impact to ratepayers. They asked how do large and industrial customers compare

2363
04:29:17,552 --> 04:29:17,552
to residential? How can more conservation efforts help all ratepayers.

2364
04:29:22,352 --> 04:29:22,352
thereby reducing costs to saws. How is saws taking into

2365
04:29:26,619 --> 04:29:26,619
account data center growth and how can folks on fixed incomes and working families

2366
04:29:34,686 --> 04:29:34,686
shoulder this rate request. Since then, again asked those questions and saws

2367
04:29:39,786 --> 04:29:39,786
answered. A few years ago saws changed their rate structure to

2368
04:29:44,186 --> 04:29:44,186
ensure those that use more water pay more. Simple.

2369
04:29:48,252 --> 04:29:48,252
those developing on the edge of our city pay more for that infrastructure too,

2370
04:29:53,119 --> 04:29:53,119
understanding that's going to require more infrastructure.

2371
04:29:57,286 --> 04:30:00,952
saws' conservation plan, which I'm grateful to see councilwoman castillo brought that big book out. I know that cover. It's a critical part of it.

2372
04:30:06,886 --> 04:30:09,686
these aren't things sprouting up out of nowhere. These are things you have been working on year after year. Part of the conservation

2373
04:30:13,352 --> 04:30:13,352
looks through 2075, focusing on reducing the system-wide water demand to 87 gallons

2374
04:30:18,919 --> 04:30:18,919
per capita per day. Last year they were at 111 gallons per capita per

2375
04:30:22,952 --> 04:30:22,952
day. They are doing more. Making sure they're doing

2376
04:30:27,919 --> 04:30:31,719
the policy work through our land use policies and development codes as well. I know that's a conversation next year. Similarly, looking at the

2377
04:30:35,452 --> 04:30:35,452
upuplift program, looking at ways to make it more affordable for the folks who

2378
04:30:39,652 --> 04:30:39,652
can least afford an increase. And have showed today the

2379
04:30:45,019 --> 04:30:47,152
targeted pilot program in many of our districts to figure out how we can make sure that the folks who are not seeing this program are enrolled as quickly as

2380
04:30:54,319 --> 04:30:57,786
possible other means. On data centers, I appreciate slide 6 being

2381
04:31:01,052 --> 04:31:04,919
shown. Today but of course all the conversation we had prior to this in our own conservation about the council consideration request that

2382
04:31:09,619 --> 04:31:09,619
my office put forward along with conversations we had in march talking about all the

2383
04:31:14,119 --> 04:31:14,119
work you'll do over the rest of the summer. All the key things that my

2384
04:31:20,119 --> 04:31:20,119
residents have been asking about are related to rate and fee structure,

2385
04:31:27,352 --> 04:31:30,652
contamination, deevaporative cooling and the use of recycled water system which has a lot of capital needs. Looking at ways to show us how we're going to be able

2386
04:31:35,452 --> 04:31:35,452
to get there one day, whether it's data centers or large water users in our

2387
04:31:41,086 --> 04:31:41,086
city. Continuing to work with staff to address some of logistt

2388
04:31:45,886 --> 04:31:45,886
art and other council members talked about when it comes to the pipe work.

2389
04:31:50,386 --> 04:31:50,386
and post construction quality assurances and many other pieces there

2390
04:31:55,119 --> 04:31:55,119
audio]. The timeline for it all, I feel comfortable moving

2391
04:32:02,652 --> 04:32:02,652
forward with this criminal investment. To ensure our most

2392
04:32:06,752 --> 04:32:06,752
vulnerable residents will not be impacted by this rate increase.

2393
04:32:12,852 --> 04:32:12,852
I trust that that work will continue as saws continues to brief this council over

2394
04:32:17,352 --> 04:32:21,019
the next several years. As you have those regular meetings. I do want to note -- I know there's skepticism from many of my colleagues.

2395
04:32:27,119 --> 04:32:27,119
so questions about how the operation will go and how this is all taking place.

2396
04:32:32,919 --> 04:32:36,052
I don't think that should go unnoticed. I don't think it has by saws leadership. Making sure we're addressing these things that are

2397
04:32:37,986 --> 04:32:41,619
critical to give us confidence to continue working very well with y'all. Of course we're always going to try to work well with the

2398
04:32:46,019 --> 04:32:49,586
utility. But I want to make clear those among us looking for some more critical actions to take place prior to this rate increase shouldn't be

2399
04:32:55,219 --> 04:32:55,219
pushed aside as not looking forward to some kind of answers here.

2400
04:33:00,452 --> 04:33:00,452
address these long-term issues they have seen in their communities.

2401
04:33:05,752 --> 04:33:08,886
there are some key concerns I have always heard, these are things that have come up and it's critical to get those things addressed.

2402
04:33:18,119 --> 04:33:21,352
I'm inclined, naturally, as a gut reaction to support a delay. I understand the risk and I'm trying to make sure that I'm cognizant about that

2403
04:33:26,152 --> 04:33:29,319
through this conversation today. I still think it's fair for us council colleagues to get the answers they're seeking but eager to hear the rest

2404
04:33:32,686 --> 04:33:36,552
of the council conversation today and sharing my perspective on it. Thank you, mayor. >> mayor jones: you said you understand the risks but

2405
04:33:38,919 --> 04:33:42,152
they haven't done an operational risk assessment, so which risks are you talking about? >> galvan: understanding the risk about potentially

2406
04:33:44,619 --> 04:33:47,019
seeing an increased rate, potential. >> mayor jones: the cost? >> galvan: the cost overall. Understanding the delay in

2407
04:33:50,786 --> 04:33:54,652
the projects and the capital investment they'll need to make, regardless. I get them and I'm not trying to say that they're diminished in value, I think

2408
04:34:00,219 --> 04:34:04,119
it's just we're having this conversation now and we've been having it for a while. I think council colleagues who are seeking more information deserve to get

2409
04:34:07,286 --> 04:34:10,219
that information. Eager to hear what they're thinking as well on this conversation. >> mayor jones: thank you. I wanted to clarify because

2410
04:34:12,752 --> 04:34:16,652
there has been no risk assessment done to understand the operational risk of any delay. There's none. We understand the costs will

2411
04:34:23,052 --> 04:34:23,052
increase, as has already been laid out. This is the cheapest that it

2412
04:34:29,719 --> 04:34:29,719
would be, the rate increase. This is the best way to minimize the risks that we

2413
04:34:34,686 --> 04:34:38,519
know. Delaying this only increases the odds that we will actually hit the ceiling of the cost, if not bust it. And we don't know the

2414
04:34:44,486 --> 04:34:48,186
impacts on our infrastructure that has already been identified as needing upgrade or repair. So for folks to say I understand the risks, you

2415
04:34:52,486 --> 04:34:55,786
don't because they haven't been laid out because they haven't done the analysis. They've done the analysis for what they've presented. They have not done an

2416
04:35:00,419 --> 04:35:00,419
operational analysis that would support nor justify a delay.

2417
04:35:08,119 --> 04:35:08,119
the up uplift program, I am thankful for the inclusion of an increase in that.

2418
04:35:19,186 --> 04:35:19,186
because raised by a single mom I'm always going to look at what does this mean for

2419
04:35:24,119 --> 04:35:24,119
those folks -- the most vulnerable in our community. When we go from 125% of the

2420
04:35:30,819 --> 04:35:34,319
federal poverty line to 150%, I don't know if folks necessarily understand who we're talking about. So for a family of three in our community, that means

2421
04:35:40,986 --> 04:35:40,986
that we were helping somebody who was making $17.78 an hour.

2422
04:35:49,986 --> 04:35:49,986
we are now, as a result of going to 150% of the federal poverty line, we're going to

2423
04:35:54,952 --> 04:35:54,952
be helping somebody, a mom and two kids, who was making $21.34 an hour.

2424
04:36:02,486 --> 04:36:02,486
that's who we're helping. The most vulnerable. We should not delay this.

2425
04:36:12,786 --> 04:36:12,786
can we also maybe -- robert or somebody else on your team that can speak to the

2426
04:36:18,252 --> 04:36:18,252
distribution of our current uplift customers as well as where we would most likely

2427
04:36:25,252 --> 04:36:25,252
see an increase based on raising the upper limits of who we would be helping.

2428
04:36:32,419 --> 04:36:32,419
>> puente: yes, mayor. We have a heat map that shows where these families

2429
04:36:37,919 --> 04:36:37,919
live. But as we know our city, as you know our city -- and

2430
04:36:44,219 --> 04:36:46,086
every council member knows their city. They're concentrated in the core of the city. District 5, district 3, district 2.

2431
04:36:52,219 --> 04:36:56,052
they're concentrated there. 4 and 6. And that's not to say there's not families in district 7, 8, 9, and 10. They're throughout the city

2432
04:37:02,286 --> 04:37:04,819
but that's where they're concentrated in the inner city. >> mayor jones: thank you. Councilmember mungia. >> mungia: thank you,

2433
04:37:12,919 --> 04:37:12,919
mayor. Robert, I just want to say thank you to the

2434
04:37:17,486 --> 04:37:20,352
conversations that we've had. Thank you to coming to the town hall that I invited you to do. I know there were some tough

2435
04:37:24,386 --> 04:37:24,386
questions and some of our residents can be a little prickly sometimes about it.

2436
04:37:29,952 --> 04:37:32,486
I appreciate you standing up there and answering the tough questions. Not everybody is prepared to do that and I do appreciate that very much.

2437
04:37:36,419 --> 04:37:40,286
>> puente: thank you. >> mungia: I think we've had some very productive conversations, you and I. I think you understand the needs and concerns I

2438
04:37:44,352 --> 04:37:44,352
expressed to you and some of the problems I feel have been longstanding issues

2439
04:37:48,852 --> 04:37:48,852
that require some solutions for. And so I appreciate -- I'm

2440
04:37:53,986 --> 04:37:57,852
glad we're having a large conversation today about south side and other east side and west side parts of town that have seen underdevelopment.

2441
04:38:01,086 --> 04:38:01,086
but I do want to recognize, especially with the bexarmet situsituation my colleagues have

2442
04:38:09,752 --> 04:38:13,419
pointed out, when it comes to the septic systems and wells, it's not necessarily saws building out the pipework to take people off of that.

2443
04:38:16,686 --> 04:38:19,586
and I think that is a problem. I understand that is a cost issue and that's going to be something that we talk about later.

2444
04:38:22,652 --> 04:38:22,652
but I do want folks to understand that we are making people who live there

2445
04:38:26,919 --> 04:38:30,119
or people who are building out communities and commercial development, they have to pay for that. And I think -- I have never been a developer so I don't

2446
04:38:35,486 --> 04:38:35,486
know the world. I can't say that I do. But I can imagine that 20,

2447
04:38:40,586 --> 04:38:40,586
30 years ago when there were other parts of our city that were booming, the framework

2448
04:38:48,352 --> 04:38:48,352
existing piping wasn't the gap system we had with bexarmet.

2449
04:38:54,952 --> 04:38:54,952
these were large tracts of land that didn't require laterals all the way down

2450
04:38:59,652 --> 04:38:59,652
the street. That's a cost being put on to the private sector and by

2451
04:39:05,719 --> 04:39:09,386
small individuals. I have shared examples with the council about individuals. Small businesses and residents that are having to --t

2452
04:39:15,186 --> 04:39:18,386
the bill for that. I think that is a travesty, when we talk about development on the south side and what we're trying to do over there.

2453
04:39:21,219 --> 04:39:21,219
and I think there are some other issues that we talked about that require some more

2454
04:39:26,552 --> 04:39:26,552
due diligence to take a look at. And I do think, I have faith

2455
04:39:30,886 --> 04:39:30,886
that you and the board can work on that and provide solutions.

2456
04:39:35,986 --> 04:39:35,986
I do think with a little bit more time I will feel more comfortable with that.

2457
04:39:40,252 --> 04:39:40,252
but I do thank you for all that you've done. I would like to ask jalen to

2458
04:39:46,286 --> 04:39:46,286
come up for a little bit too. Thank you also for the

2459
04:39:52,252 --> 04:39:52,252
conversation we had. We had a long chat last week and I understand you took a

2460
04:39:56,419 --> 04:39:56,419
lot of time and effort to understand the issues I had. You have given me some

2461
04:40:00,619 --> 04:40:00,619
responses to that. You do have a very good reputation in the city and

2462
04:40:06,052 --> 04:40:06,052
people do trust your leadership, and I do too as the board chair.

2463
04:40:10,652 --> 04:40:10,652
I think you have done some amazing work under your tenure.

2464
04:40:14,719 --> 04:40:18,019
I think there's a lot more to do and you recognize that too. You're not one to say, hey, we're done. You're constantly changing

2465
04:40:22,586 --> 04:40:22,586
it on the go. What I see and explained to you are some systemic issues

2466
04:40:27,086 --> 04:40:30,452
that keep happening. What I don't want to do -- and I know that it's very easy for me to pick up the phone and maybe call folks and say, hey, this is an

2467
04:40:34,652 --> 04:40:34,652
issue I have. Can you address it? And it could get addressed.

2468
04:40:39,219 --> 04:40:39,219
but what about all the issues and folks that don't have access to me or know

2469
04:40:43,352 --> 04:40:46,686
that they can call me? Or know you all as individuals, right? And so these are a lot of examples -- there's a lot of examples out there of folks

2470
04:40:52,352 --> 04:40:52,352
who just don't have that access. So I'm looking at systemic

2471
04:40:56,852 --> 04:40:59,252
solutions. Well beyond anybody who's here. I mean, in 20 years none of us will be in this room, hopefully.

2472
04:41:05,352 --> 04:41:05,352
that's kind of what I'm looking for. >> I want to be here but I

2473
04:41:10,886 --> 04:41:10,886
may not. >> mungia: I do think with extra additional time we

2474
04:41:17,852 --> 04:41:21,519
talked about we can get there . I think my concerns can be addressed in a really good way that I'm looking for. I do appreciate that.

2475
04:41:28,919 --> 04:41:28,919
I appreciate my former boss who is here, dr. Rocha garcia, she has been helpful

2476
04:41:33,252 --> 04:41:36,652
and took my calls and concerns. She sat here and she understands these issues and what's going on through the development of things.

2477
04:41:40,652 --> 04:41:43,519
I didn't know if you wanted to add something. >> I appreciate your comments. Thank you for the comments regarding my tenure as well.

2478
04:41:50,286 --> 04:41:54,252
I say often I'm not a native but I really am committed to this community. Thank you. I too share your concerns. I look forward to an

2479
04:41:58,552 --> 04:41:58,552
opportunity to write some of the poor management decisions by bexarmet

2480
04:42:03,852 --> 04:42:03,852
historically, and quite frankly some of the strategic decision that the

2481
04:42:08,586 --> 04:42:11,986
water board made not to invest in the south side of san antonio. I'm aware of that history. But I will tell you to delay for a couple of months is

2482
04:42:16,252 --> 04:42:16,252
not going to bring that solution forward. I am committed -- and I'm

2483
04:42:20,786 --> 04:42:20,786
sure my colleagues share my concern about the overall -- our current philosophy of

2484
04:42:27,219 --> 04:42:30,852
development paying for itself. And we are excited about what's happening on the south side of san antonio. When I was here, I led the

2485
04:42:35,486 --> 04:42:39,452
effort to get texas a&m in our community. I thought it would be great for san antonio to be the only city in the state of texas with both flagship

2486
04:42:46,119 --> 04:42:48,619
institutions in our community. Lots of work to get done. That will be a heavy lift. I don't want to stand behind that but I am ready to roll

2487
04:42:53,919 --> 04:42:53,919
up our sleeves, work with our stakeholders. If it requires us to go back

2488
04:42:58,552 --> 04:42:58,552
and engage a rate consultant to help us determine how we would look at that, I'm

2489
04:43:03,219 --> 04:43:03,219
willing to do that. In addition, though, we're going to need your help

2490
04:43:07,486 --> 04:43:07,486
because it will require us to work with the city-appointed capital

2491
04:43:12,519 --> 04:43:15,086
improvements committee to look at how we structure impact fees. >> mungia: absolutely. >> that's why I was saying it's not a couple of months

2492
04:43:19,619 --> 04:43:19,619
or a couple of weeks deal. It's going to take some time to work on that and if it

2493
04:43:24,919 --> 04:43:28,252
means we're going to work on that right now and begin that process, I'm all in. >> mungia: absolutely. I think some hard, concrete planning efforts that

2494
04:43:36,586 --> 04:43:36,586
reassure us of those timelines would be helpful. I have seen this happen

2495
04:43:42,552 --> 04:43:43,819
every time. There's important infrastructure that needs to be funded. I get that. I understand this program.

2496
04:43:47,319 --> 04:43:47,319
but at some point we have to get some better assurance on these solutions to happen.

2497
04:43:51,586 --> 04:43:55,519
>> one of the aspects of the efficiency plan is a communication plan and how we need to implement that ongoing. And our decision-making

2498
04:44:00,986 --> 04:44:03,686
process and internally to make sure those projects are delivered. That work is being done with our oversight committee and we look forward to bringing

2499
04:44:08,052 --> 04:44:10,352
that back to the council so they can understand that plan. But we need a final approved plan to do that. >> mungia: with that

2500
04:44:14,519 --> 04:44:14,519
discussion, I move to continue this item to an a session to october for the

2501
04:44:19,886 --> 04:44:19,886
council to consider a saws rate adjustment for 2027 and 2028 and a meeting discussed

2502
04:44:29,352 --> 04:44:29,352
and provided. >> gavito: second. >> mayor jones: there's a

2503
04:44:36,486 --> 04:44:36,486
motion and a second to continue the item to october.

2504
04:44:44,152 --> 04:44:44,152
as was just mentioned by the chair, however, the things that you've asked for,

2505
04:44:51,619 --> 04:44:55,352
councilman, are probably not going to be addressed. Secondly, we don't have an operational risk assessment that helps us understand the risks of delaying.

2506
04:45:00,552 --> 04:45:00,552
and further delaying this only increases the costs of these potential projects.

2507
04:45:07,319 --> 04:45:07,319
so those are the challenges that we would knowingly face as a result of continuing

2508
04:45:19,186 --> 04:45:19,186
this item. For those that are just returning, there's a motion

2509
04:45:23,619 --> 04:45:23,619
and a second to continue the item until october. Please sign in if you would

2510
04:45:28,619 --> 04:45:28,619
like to speak. Councilwoman viagran. >> viagran: so, I

2511
04:45:39,852 --> 04:45:39,852
understand that there was a list. I have not seen the list.

2512
04:45:46,019 --> 04:45:46,019
I am -- I'm speaking as chair of economic workforce --

2513
04:45:50,852 --> 04:45:54,252
>> mayor jones: you might want to elaborate on the list. >> viagran: let me start this way. Robert, was a list sent to

2514
04:45:58,919 --> 04:45:58,919
you regarding what they would like to see and you or jalenen can answer.

2515
04:46:10,986 --> 04:46:14,952
>> puente: councilwoman kaur sent me a list. >> viagran: I have not seen that list . I did not get it. It's not in my e-mail.

2516
04:46:18,986 --> 04:46:18,986
so I have a problem with delaying for a list that was made by council members but

2517
04:46:28,386 --> 04:46:28,386
we do not have the list of who the council members were.

2518
04:46:32,719 --> 04:46:32,719
and I'm concerned about of course protocol and the appearance of a walking

2519
04:46:39,986 --> 04:46:39,986
quorum, possibly on this issue if we don't have that. I will not be supporting

2520
04:46:44,219 --> 04:46:44,219
this list because -- I will not be supporting a delay because it's shrouded in too

2521
04:46:49,586 --> 04:46:53,486
many questions for myself, who was part of it. Did we have a walking quorum? Should we even have a list? Things like that.

2522
04:46:57,652 --> 04:46:57,652
again, I do believe that we could pass this today and that we could get the

2523
04:47:03,452 --> 04:47:03,452
answers that we want and the accountability that we need. Because I know -- I see art

2524
04:47:09,319 --> 04:47:09,319
here and mike and john peterek was here. When we talk about our

2525
04:47:14,252 --> 04:47:14,252
team -- and even rod and razi. My belief is that they will

2526
04:47:20,952 --> 04:47:20,952
be the shot callers, as anything we move forward in these projects and keep a

2527
04:47:25,586 --> 04:47:25,586
very good eye on this to make sure that any memo of understanding, anything is

2528
04:47:31,886 --> 04:47:35,386
kept on track. So I will not be supporting a delay. I do not see that a delay -- from what I'm hearing, a delay does not -- will not

2529
04:47:42,386 --> 04:47:42,386
change at least three votes on this dais because of the three noes that I'm certain

2530
04:47:51,586 --> 04:47:51,586
of that have expressed that. They're not going to get the changes that they want.

2531
04:47:55,652 --> 04:47:55,652
I would like to move forward and not do the delay. Thank you.

2532
04:47:59,786 --> 04:48:02,752
>> segovia: if I may, mayor, can I make a couple of points? >> mayor jones: sure. >> segovia: if we're talking about --

2533
04:48:04,852 --> 04:48:04,852
>> mayor jones: have you seen the list, andy? >> segovia: I was provided

2534
04:48:08,986 --> 04:48:11,052
a -- yes. >> mayor jones: you were provided a list. Thank you. >> segovia: the first comment, mayor, is that

2535
04:48:14,619 --> 04:48:14,619
we're going to have issues in terms of walking quorum. That should be discussed in

2536
04:48:18,786 --> 04:48:22,752
executive session, since it is a compliance issue. Second, the list that was shared with me, I understood it as a list of issues that some of the council members

2537
04:48:27,819 --> 04:48:27,819
had concerns about. I made it clear that whatever vote that is taken

2538
04:48:34,952 --> 04:48:34,952
today can't be contingent on the ceo, mr. Punte or the board taking certain

2539
04:48:42,452 --> 04:48:45,086
actions. Certainly as the ratemaking body you can ask all the questions you want, raise whatever issues you want but whatever vote is taken can't

2540
04:48:48,652 --> 04:48:48,652
be tied to a particular action by either mr. Puente or the board.

2541
04:48:56,352 --> 04:48:56,352
>> mayor jones: thank you. That's very helpful. Some of the items on that

2542
04:49:01,986 --> 04:49:01,986
list, I'm very concerned, veer into what is not the purview of this body.

2543
04:49:07,419 --> 04:49:07,419
and more so are related to operations and personnel, which are square in the

2544
04:49:12,886 --> 04:49:12,886
bucket of the board. We want to make sure we are compliant but not inviting

2545
04:49:17,619 --> 04:49:17,619
any undue attention to ourselves needlessly. Is there any other

2546
04:49:22,252 --> 04:49:22,252
discussion on the motion to continue? Councilman mckee-rodriguez.

2547
04:49:29,452 --> 04:49:32,786
>> mckee-rodriguez: thank you, mayor. I entered this meeting undecided and I'm going to talk you all through my thought process and I'm

2548
04:49:37,452 --> 04:49:37,452
going to try to be as gentle as I can. I think in this context a

2549
04:49:41,986 --> 04:49:45,352
delay could grant more confidence in whatever vote I cast. It could get me closer to a yes. It could be what's needed to

2550
04:49:48,186 --> 04:49:48,186
get me there. This is probably been one of the most challenging rate

2551
04:49:52,652 --> 04:49:55,986
increase discussions that we've had. In the last presentation I responded to, I described a few of the things I appreciated about saws'

2552
04:49:59,286 --> 04:50:02,319
approach, especially the rate structure that ensures that the largest users pay more. That's something that our community really values with

2553
04:50:05,752 --> 04:50:05,752
saws. Whereas they critique the inverse of cps's approach in

2554
04:50:11,086 --> 04:50:14,352
which they incentivize those who use more with lower rates. And I appreciate that saws does not prioritize corporations over working

2555
04:50:19,452 --> 04:50:22,186
families. I appreciate this request seeks to minimize the impacts of our most vulnerable and capture as many of those households as

2556
04:50:26,452 --> 04:50:30,152
possible by increasing the threshold for participation in uplift and the like. I also have discussed a few challenges. Today I'm contemplating all

2557
04:50:34,019 --> 04:50:37,652
of that. Number one is there is of course a critical need to make these infrastructure investments. When I think about some of

2558
04:50:40,052 --> 04:50:40,052
the mayor's words when she first got elected and described her priorities, it

2559
04:50:44,519 --> 04:50:44,519
was those areas we cannot afford to fail. We don't disagree on that at

2560
04:50:49,786 --> 04:50:52,719
all. And so the idea that these are projects that we cannot afford to not fund really weighs on me as I know that it does all of my

2561
04:50:56,586 --> 04:50:56,586
colleagues. We just had this discussion around a property tax rate

2562
04:51:01,019 --> 04:51:01,019
increase and we're balancing that discussion on top of this one, on top of any

2563
04:51:06,419 --> 04:51:08,719
other -- anything else impacting the quality of life for the applicant of our residents. I understand a delay may make these projects more

2564
04:51:13,752 --> 04:51:16,552
expensive and may necessitate a higher increase in the future . What exactly that number is is to be determined. To that point, I do have a

2565
04:51:21,952 --> 04:51:24,219
few challenges with how we got here. We're talking about infrastructure that at a recent meeting you have said it could fail in the

2566
04:51:28,919 --> 04:51:32,686
immediate future. That makes me really concern about the long-term planning efforts of saws and just a few years ago -- this has been brought up too -- a

2567
04:51:39,319 --> 04:51:42,586
rate decrease was proposed. I asked does this make sense? There's nowhere you could utilize these funds or mitigate a future rate

2568
04:51:47,419 --> 04:51:47,419
increase? And are you going to come back for an increase later?

2569
04:51:51,919 --> 04:51:55,452
the response was it's always possible we can come back for a rate increase. It was not stated we were going to need money for capital investments that

2570
04:52:03,152 --> 04:52:05,919
were do or die in a few years. That leads me to believe that you as an organization did not know you needed to make these major capital

2571
04:52:10,186 --> 04:52:10,186
investments or that your long-term planning did not meet my expectations.

2572
04:52:15,952 --> 04:52:19,252
so either one of those is unacceptable. I'll allow you to respond after I'm done. But there's also been a number of major projects

2573
04:52:24,152 --> 04:52:24,152
that our community relied on and were excited for that were delayed because saws

2574
04:52:28,586 --> 04:52:32,552
didn't know where their infrastructure was or because saws otherwise coordinated poorly with the city and the contractor. I understand any time

2575
04:52:35,519 --> 04:52:35,519
there's multiple parties involved the onus does not fall squarely on one entity.

2576
04:52:43,919 --> 04:52:43,919
but businesses were closed and they represents dozens and hundreds of jobs lost.

2577
04:52:49,686 --> 04:52:49,686
people who were impacted by a lack of accountability in public institutions.

2578
04:52:54,652 --> 04:52:54,652
that led to an erosion in trust in saws and in major city projects that should be

2579
04:53:00,019 --> 04:53:03,786
a net positive for our community, that we asked them to support with eagerness and excitement. And every single time that saws was asked about a major

2580
04:53:10,219 --> 04:53:10,219
issue, it's always someone else's fault. And so the city led efforts

2581
04:53:14,352 --> 04:53:14,352
to create an mou to address those issues with saws related to our projects --

2582
04:53:18,986 --> 04:53:18,986
or that led to those efforts. Every conflict to that point

2583
04:53:23,019 --> 04:53:26,819
is a finger-pointing blame game. I think back to one of my first major interactions with you, robert, via e-mail where I shared my concerns

2584
04:53:32,786 --> 04:53:32,786
about water shutoffs in apartment complexes where residents paid their

2585
04:53:36,919 --> 04:53:40,652
utilities and the apartment manager neglected to pay their bill. And the response was to punish the residents and shut off their water or to

2586
04:53:44,686 --> 04:53:44,686
threaten that. And they could not cook, bathe, brush their teeth.

2587
04:53:49,286 --> 04:53:49,286
when I e-mailed this concern to you asking for a change, I would describe your

2588
04:53:53,619 --> 04:53:56,652
response at the time as snippy and it made me incredibly angry at the time. Largely, to me, your response neglected the

2589
04:54:00,452 --> 04:54:00,452
impacts of the shutoffs or even the threat of a shutoff had on residents.

2590
04:54:04,619 --> 04:54:04,619
it was not the only approach saws could have made but it was the most convenient,

2591
04:54:08,786 --> 04:54:08,786
though one of the most inhumane. So we as a council had to

2592
04:54:12,919 --> 04:54:12,919
take action to address that approach. And then you look at grayson

2593
04:54:17,286 --> 04:54:20,886
heights and the water leaks and leaks across the city and it's always someone else's fault. Never saws'. And so there's never

2594
04:54:23,586 --> 04:54:23,586
anything that saws can do. If I were to compare that with any department head in

2595
04:54:28,052 --> 04:54:28,052
our city, if I reached out to them with a concern that has two degrees of

2596
04:54:34,152 --> 04:54:37,519
separation from their pursue, they would never say it's not their responsibility, that it's somebody else. They would work on a

2597
04:54:40,619 --> 04:54:42,819
solution, identify partners, and address the issue. That's not the case with saws and that is incredibly frustrating. And we've since had

2598
04:54:47,419 --> 04:54:47,419
conversations -- and I do believe the tone has changed and you internalized my

2599
04:54:54,219 --> 04:54:54,219
feedback. A part of me feels it has been in earning my vote.

2600
04:55:01,519 --> 04:55:01,519
now all of our questions can be answered and there's a plan to address our issues

2601
04:55:06,819 --> 04:55:06,819
and it's at this point when a rate increase is needed, it's not at any other point

2602
04:55:12,286 --> 04:55:15,219
over the past several years when concerns have been raised. We have discussed trust and the desire for each of us individuals to trust you and

2603
04:55:19,452 --> 04:55:19,452
to trust one another. I want to get there and I know that we'll both work to

2604
04:55:24,586 --> 04:55:24,586
get there and we'll be fine. On this topic, multiple things can be true.

2605
04:55:28,852 --> 04:55:28,852
it can be true that you've navigated saws through challenging times and led

2606
04:55:33,019 --> 04:55:35,119
the utility well. I don't want to neglect that. You could be the best leader that saws will ever have in its history.

2607
04:55:38,519 --> 04:55:40,386
I don't want to neglect that. That's possible. It can also be true that something is wrong here and that there are balls being

2608
04:55:44,086 --> 04:55:44,086
dropped along the way and something needs fixing. And I don't know what that

2609
04:55:48,486 --> 04:55:48,486
is. It may also be true that the rate increase is needed to

2610
04:55:52,519 --> 04:55:52,519
do the work our community needs and expects of you, expects of all of you and

2611
04:55:57,119 --> 04:56:00,619
all of us. It is also true that there has been a gap that has gotten us to the point where without a rate increase our infrastructure can fail.

2612
04:56:05,519 --> 04:56:05,519
gotten us to the point where the location of saws' infrastructure is casually

2613
04:56:10,719 --> 04:56:13,152
guessed and leads to businesses shutting down, people losing jobs and the trust in our ability to deliver infrastructure improvement eroded.

2614
04:56:17,452 --> 04:56:17,452
gotten us to the point where a large contingent of our council is contemplating not

2615
04:56:22,852 --> 04:56:22,852
supporting this increase that you need, much to the detriment of our city.

2616
04:56:27,719 --> 04:56:27,719
and so there's still a question of whether or not we believe these projects

2617
04:56:32,252 --> 04:56:32,252
will be done well. We've talked about projects that our community needs and

2618
04:56:37,186 --> 04:56:40,586
are excited for that have not been done well, have not been done timely. What is to say that the projects you need and the projects that are a priority

2619
04:56:45,052 --> 04:56:48,519
that are of utmost importance and significance, how do we know that those are going to be done well? Because we don't have that trust right now.

2620
04:56:51,386 --> 04:56:51,386
and when we as a body rubber stamp a request without addressing those

2621
04:56:57,086 --> 04:57:00,419
deeply-troubling issues, we disappoint our community and the people who place their trust in us. And someone needs to atone for that.

2622
04:57:03,652 --> 04:57:03,652
and so I had to ask myself if there is a point where I could confidently support a

2623
04:57:08,586 --> 04:57:08,586
rate increase. The answer is yes. Many of my colleagues have

2624
04:57:15,719 --> 04:57:17,852
tremendously -- points made today are clear. This is a public health issue. That is an area I don't neglect.

2625
04:57:20,086 --> 04:57:20,086
this is something our residents are counting on us for and counting on us to do

2626
04:57:24,286 --> 04:57:27,819
and to make this difficult decision. And I desperately want to avoid this conflict and I hate that we're at this point today.

2627
04:57:31,419 --> 04:57:31,419
I also don't know that I need any new information. What I do think what I need

2628
04:57:36,286 --> 04:57:40,152
is purpose and intention from saws. I'm not sure that that's yet been conveyed. I do think we're on our way there.

2629
04:57:42,486 --> 04:57:42,486
I think there's leadership who's made some clear points and expressed a desire to

2630
04:57:47,386 --> 04:57:47,386
get to that point. So my vote is still approaching the end of my

2631
04:57:52,719 --> 04:57:56,352
ten minutes, still undetermined but a yes vote for me would only be out of fear. It would not be a confident yes vote.

2632
04:57:59,686 --> 04:57:59,686
and that concerns me because I don't cast votes that way. Thank you.

2633
04:58:07,052 --> 04:58:07,052
>> puente: first, I appreciate the fact that you have an open mind.

2634
04:58:11,652 --> 04:58:11,652
that you're giving me and saws the opportunity to convince you to say yes to

2635
04:58:18,686 --> 04:58:18,686
this very-needed rate increase. I appreciate that.

2636
04:58:23,652 --> 04:58:27,152
secondly, I am troubled on how much to respond because I don't want to come across as defensive. I don't want to come across as not being able to take

2637
04:58:30,752 --> 04:58:30,752
any blame or anything like that. But let me just tell you

2638
04:58:35,652 --> 04:58:35,652
what our position is. One of the things you talked about is long-term planning.

2639
04:58:41,852 --> 04:58:41,852
whether some of these projects that we're saying are needed now because of a

2640
04:58:48,619 --> 04:58:48,619
potential violation in the near future. One perfect example,

2641
04:58:54,586 --> 04:58:57,719
councilman, is winter storm uri. The project that we have on the books that we want to start this fall was originally scheduled to

2642
04:59:04,652 --> 04:59:04,652
start in 2022 --. Hurricane uri happened, the state government passed

2643
04:59:15,386 --> 04:59:15,386
senate bill 3 and told utilities you have to do some things -- they didn't

2644
04:59:20,552 --> 04:59:20,552
tell the private secker, sector, just told the public sector, that if the power goes out

2645
04:59:28,386 --> 04:59:28,386
you have to still provide at least 20 pounds of pressure to the residents.

2646
04:59:33,652 --> 04:59:33,652
that senate bill 3 cost us over $300 million. That $300 million would have

2647
04:59:39,519 --> 04:59:39,519
paid for some of the projects in 2026, later this year, and in early 2027.

2648
04:59:46,952 --> 04:59:46,952
so we believe that we do have long range planning. Please don't take that as me

2649
04:59:54,086 --> 04:59:57,952
being defensive. I will admit that -- I'll say this out lloyd too everybody. That's something that joe lynn and my board told me

2650
05:00:02,186 --> 05:00:05,886
about is don't be so defensive so I'm working on it. I'm glad you recognize that my attitude has changed to some extent.

2651
05:00:17,552 --> 05:00:20,619
councilmember gonzález mentioned the streets and we talked about it last night. One of the things they told me, and I hope I get this right, erik, is he's been

2652
05:00:24,886 --> 05:00:24,886
trying to tell you, the council, that these issues that come up are only one,

2653
05:00:29,852 --> 05:00:29,852
maybe two percent of the time that saws works with the city on these

2654
05:00:36,219 --> 05:00:36,219
governmental projects. Unfortunately that one or two percent are very

2655
05:00:40,686 --> 05:00:40,686
visible, it causes a lot of complaint, it causes a lot of angst by the businesses

2656
05:00:45,752 --> 05:00:49,752
that are affected, the residents that are affected, and they call you, they call you. And we need to address that. And one way we addressed it

2657
05:00:54,286 --> 05:00:54,286
is this mou that's been talked about, memorandum of understanding, where we are

2658
05:00:59,719 --> 05:01:03,019
signatories to the construction contracts that the city enters. When y'all are doing drainage or street repair and we're doing -- changing

2659
05:01:08,352 --> 05:01:11,686
out of our sewer or water infrastructure. So I believe, councilman, that these issues are going to be taken care of. The other one about the

2660
05:01:21,686 --> 05:01:21,686
apartment complexes, this was a concern of council district 7 also.

2661
05:01:27,119 --> 05:01:30,886
only 45 minutes was an apartment complex out of water. However, the threat -- and it made a lot of news. It caused every other

2662
05:01:36,952 --> 05:01:40,552
apartment complex to fall in line and to start paying their bills to where we don't have that type of problem anymore. Now, the email that you

2663
05:01:45,552 --> 05:01:45,552
talked about, if I was snip snippy, I hope I wasn't, but I remember telling you -- I

2664
05:01:52,786 --> 05:01:52,786
don't know if it was in the email or over the phone, because one of your big

2665
05:01:59,786 --> 05:01:59,786
concerns was just the threat of turning off their water causes a lot of angst on

2666
05:02:04,619 --> 05:02:04,619
that renter that paid their rent, did everything they were supposed to do, and

2667
05:02:10,352 --> 05:02:10,352
their water could be cut off because we were notifying the residents that their

2668
05:02:14,652 --> 05:02:14,652
water could be cut off. That in and of itself is an event they shouldn't have

2669
05:02:21,952 --> 05:02:24,186
gone through. I admit that. And because of our conversations we don't do that anymore, we haven't done that anymore.

2670
05:02:27,119 --> 05:02:27,119
I believe I was responsive to you even to the extent, for example, that there was

2671
05:02:32,652 --> 05:02:32,652
a complex outside of district 2 but in the county, that we kept your

2672
05:02:40,719 --> 05:02:40,719
staff apprised of as to how they were paying or not paying.

2673
05:02:51,152 --> 05:02:51,152
for having an open mind. I ask that you give us the opportunity to earn your

2674
05:02:56,019 --> 05:02:59,719
trust again. I said the same thing last time we were in front of you, I was in front of you, but we can -- we can get it done.

2675
05:03:06,286 --> 05:03:06,286
I'm confident we can get it done. >> mayor jones: thank you.

2676
05:03:12,052 --> 05:03:12,052
as district 2 is one of the areas that is most underserved, I personally

2677
05:03:16,519 --> 05:03:16,519
would like to understand the progress made on the councilman's request over

2678
05:03:21,119 --> 05:03:21,119
the last meetings. Gavino, are you ready? The update on the request

2679
05:03:27,119 --> 05:03:27,119
that he's made? On the projects?

2680
05:03:31,886 --> 05:03:31,886
>> well, part of it is identifying certain neighborhoods.

2681
05:03:36,152 --> 05:03:39,286
I'm from that neighborhood. I know that neighborhood. I can tell you exactly where these things are needed. And we will enroll people in the program without them

2682
05:03:46,519 --> 05:03:46,519
having to qualify initially and give them six months to -- after we help them

2683
05:03:54,386 --> 05:03:57,186
with the paperwork to make sure they stay on those roles. So we understand that district 2, a lot of the districts have needs but

2684
05:04:02,386 --> 05:04:06,286
those are some of the things we have planned for these pilot programs to see how well they get more people on our affordability program. >> mayor jones: got it.

2685
05:04:14,919 --> 05:04:17,319
would you like to add anything in terms of the previous questions that have been asked by the councilmember? >> regarding the uplift

2686
05:04:21,852 --> 05:04:21,852
program, that's exactly what robert is talking about. I know that byron gibson

2687
05:04:26,152 --> 05:04:29,819
worked very closely with your office. What we try to do as the information comes available we worked directly with the councilman and his staff.

2688
05:04:33,886 --> 05:04:37,252
so depending on what the various issues are we work closely to provide as soon as we can. I don't know if there was an outstanding issues that we

2689
05:04:40,419 --> 05:04:43,852
didn't resolve for you yet, but it was my understanding that we've provided you with the information that you had been requesting. >> mckee-rodriguez: so the

2690
05:04:49,352 --> 05:04:53,152
mayor and I were having a conversation about this and I was prepared to ask you a question and that be the determining factor of whether or not I would vote

2691
05:04:56,019 --> 05:04:58,652
yes because it would tell me whether or not you were listening. And the question was at a previous meeting I had asked what's going to be the

2692
05:05:04,619 --> 05:05:04,619
impact per district average, the same question I asked about the property tax

2693
05:05:10,652 --> 05:05:10,652
increase, and how many users in each district will be participating in the uplift

2694
05:05:15,219 --> 05:05:19,219
program or will not be impacted by this rate increase? >> councilman, I think the response to that is in the roughly 400 page document

2695
05:05:24,186 --> 05:05:24,186
that we sent back to council based on one of the previous meetings that we had where

2696
05:05:29,686 --> 05:05:33,419
all of you asked a whole lot of different questions. So we put it altogether. I think it's in that do you mean. >> mckee-rodriguez: I'll

2697
05:05:38,319 --> 05:05:38,319
use crtl f to find it. >> mayor jones: thank you. Councilmember spears?

2698
05:05:55,152 --> 05:05:55,152
you're next. >> spears: thanks, mayor. I appreciate all the hard

2699
05:06:02,786 --> 05:06:02,786
work you've put into it. This is very simple for me. I asked for some things in

2700
05:06:07,519 --> 05:06:11,086
january, I still have a lot of questions. I've been out to all my constituents over and over and over, they're not ready, I'm not ready, so I'm going

2701
05:06:16,486 --> 05:06:16,486
to vote with my constituents and if we delay, then that may give us time to better

2702
05:06:26,586 --> 05:06:28,752
help my constituents understand the urgency and need. I do believe that we need to make some improvements, but I just have to represent my

2703
05:06:34,019 --> 05:06:34,019
constituents here. Thank you. >> mayor jones:

2704
05:06:40,352 --> 05:06:40,352
councilmember kaur. >> kaur: thank you, mayor, for the opportunity to

2705
05:06:44,719 --> 05:06:48,619
speak. The brain to train tour was super helpful when I got to go. Thank you guys for approximate helping me set

2706
05:06:52,852 --> 05:06:56,286
that up. And the video pitch has the way that saws was created and the entire message to our residents is, residents, you own saws.

2707
05:07:00,152 --> 05:07:00,152
you are the owners, you are the ratepayers, you get to tell us exactly what and how

2708
05:07:04,552 --> 05:07:04,552
to do. And our residents elect us to be in this position as

2709
05:07:10,652 --> 05:07:10,652
the owners of saws to do the due diligence that's necessary to make sure every

2710
05:07:16,686 --> 05:07:16,686
rate increase that goes through has all of the operational concerns that we

2711
05:07:22,219 --> 05:07:22,219
are facing that are addressed. We 100% -- I 100% agree that

2712
05:07:27,186 --> 05:07:30,986
you all need these funds for these infrastructure improvements. District 1 is not known for infrastructure challenges for absolutely no reason.

2713
05:07:38,752 --> 05:07:38,752
and at the same time it is our responsibility and what we were elected to do to do

2714
05:07:43,019 --> 05:07:43,019
our due diligence to make sure that we have dotted our I's and crossed our t's when

2715
05:07:50,619 --> 05:07:50,619
we were putting more taxpayers to increase their rates for what they're

2716
05:07:54,819 --> 05:07:54,819
paying for saws. So that being said, I also -- there was this

2717
05:07:59,752 --> 05:07:59,752
notion that if we asked for a delay for this that we don't appreciate what the

2718
05:08:03,952 --> 05:08:03,952
board has done. I hope the board does not take that from -- at least

2719
05:08:09,286 --> 05:08:09,286
from my perspective. I am so grateful for the hours that you all put in

2720
05:08:13,619 --> 05:08:17,452
and serving in that capacity. It is not your full-time job even though today and all of the other days that you spend doing diligence has

2721
05:08:21,086 --> 05:08:25,052
been. This is for most of us our full-time job, so we do have the benefit of being able to spend more time actually going through and figuring

2722
05:08:29,552 --> 05:08:29,552
out what our constituents are saying. And just as mr. Puente said,

2723
05:08:34,352 --> 05:08:34,352
our constituents call us. So last week I mentioned I had three big concerns.

2724
05:08:38,452 --> 05:08:38,452
one was on construction, uplift, and impact fees. So I went through and went

2725
05:08:43,686 --> 05:08:43,686
through all of the cases that our constituents have called us about, 103 cases

2726
05:08:49,352 --> 05:08:53,252
over the last couple of years around saws issues. Here are some of the ones that I got on construction. Lavaca street, saws dug up the street and left it open

2727
05:08:59,386 --> 05:08:59,386
for week. Melba drive, saws came to address a water leak and

2728
05:09:04,519 --> 05:09:04,519
left a huge pile of dirt. Marshall street, dug into the street to repair the

2729
05:09:12,286 --> 05:09:15,252
water line and patched the hole and never laid out asphalt. Crown hill park, asked for a street sweeping because of the mess that saws left one

2730
05:09:21,552 --> 05:09:21,552
of the things that I asked is we all have room to grow and public works and the

2731
05:09:26,486 --> 05:09:26,486
capital delivery department will tell you that we pushed them just as hard.

2732
05:09:30,952 --> 05:09:33,886
what I'm asking for is what is the percentage of projects over the last three years that have had to go back and been redone because of constituent complaint and

2733
05:09:40,719 --> 05:09:40,719
what is the metric that you want to decrease that by in the next four years.

2734
05:09:45,486 --> 05:09:45,486
water leaks, parkland, meters have been leaking for a week.

2735
05:09:51,819 --> 05:09:51,819
joy street, recurring leak for over three months and hasn't been addressed.

2736
05:09:56,319 --> 05:09:56,319
blanco, called saws within a week, not resolved. North hampton, water leak,

2737
05:10:02,252 --> 05:10:05,686
yet to take action. Dawn ridge, reported a leak four times. What is the actual number of days that it should take for a leak to be addressed?

2738
05:10:09,052 --> 05:10:09,052
what is the target for what we want to reduce that -- the amount of days by?

2739
05:10:14,652 --> 05:10:17,752
from communications perfect when it comes to construction, east park, saws cut out water without notice on thanksgiving day. Gray oak drive, water was

2740
05:10:22,619 --> 05:10:22,619
turned off multiple times over the past few months and they get five to 10 minutes

2741
05:10:26,652 --> 05:10:26,652
of notice for an outage. They are requesting four hours.

2742
05:10:30,719 --> 05:10:33,086
[indiscernible], an active project in front of a business and wasn't notified. What are the communication standards for every project

2743
05:10:36,186 --> 05:10:36,186
that we want to hold ourselves to and how can we mirror those same

2744
05:10:43,252 --> 05:10:45,486
communication standards across all the facilities. We say this multiple times, when you walk out on to that street you're not trying to look at the sign.

2745
05:10:49,319 --> 05:10:49,319
there's no tag on' construction equipment that says this is a saws project,

2746
05:10:53,386 --> 05:10:55,619
this is a public works project, this is a cps project. All they see is construction. So we have to get aligned

2747
05:11:00,452 --> 05:11:03,919
and we have to be better on our construction projects. These represent real operational challenges that need to be addressed and this doesn't take into

2748
05:11:09,019 --> 05:11:11,786
consideration big bond projects. Mr. Puente, you mentioned we've had some major issues with some big bond projects, some of which we still

2749
05:11:16,686 --> 05:11:16,686
haven't reconciled, but at the same time one of the requests that we had made is

2750
05:11:21,452 --> 05:11:21,452
what subsurface utility engineering is being done on even not bond projects?

2751
05:11:25,886 --> 05:11:29,586
I understand that mou applies just to the bond. What else are you requiring your contractors to do on water main line projects so that we can better

2752
05:11:34,586 --> 05:11:38,186
understand what level of diligence is done in the design phase on y'all's end as well. So a briefing for that has been requested.

2753
05:11:41,519 --> 05:11:41,519
aside from this, I mentioned that one of my biggest concerns is the uplift

2754
05:11:45,819 --> 05:11:45,819
program because as was shared, the uplift program helps our most vulnerable

2755
05:11:50,652 --> 05:11:53,686
that will actually be hit by this. At the end of the day, most of us will be able to bear this and deserve -- councilmember castillo

2756
05:12:03,452 --> 05:12:06,352
mentioned that we have to bear with this, but we have to make sure the most vulnerable are not affected. What hurt me most was the last time you guys presented

2757
05:12:11,286 --> 05:12:11,286
a saws rate increase is we went from 100 to 125% eligible on ami for the

2758
05:12:17,319 --> 05:12:21,319
poverty level for uplift. So I expected those numbers to increase significantly. And yet they haven't. They actually decreased. And that broke my heart

2759
05:12:25,352 --> 05:12:29,352
because that means we are leaving folks that need the help out there without getting them the support that they need. So in the letter you

2760
05:12:32,852 --> 05:12:32,852
presented the pilot program, which I'm excited about, and yet a little nervous.

2761
05:12:36,952 --> 05:12:40,852
I feel like six months, they're not able to provide documentation and then we cut them off.

2762
05:12:44,952 --> 05:12:48,886
and now we've had to -- they're having to increase their rates again and they've only budgeted for so much. So I'm curious to see how we

2763
05:12:52,619 --> 05:12:52,619
can explore that pilot program, but would like to riff what that looks like so

2764
05:12:58,219 --> 05:13:01,619
that we don't unintendingly affect people in a negative way. I'd also like to see what the target enrollment is at the end of this whatever

2765
05:13:06,186 --> 05:13:06,186
term that you come to for us for the next two years, so by end of fiscal year '28 we

2766
05:13:13,386 --> 05:13:13,386
are going to get, right now it's 10% of enrollment for unlift of eligible

2767
05:13:19,086 --> 05:13:19,086
customers. By end of fiscal year '28 we're going to be at 20%

2768
05:13:23,119 --> 05:13:25,852
enroll. Set a target and let us hold you accountable to that target based on what you know your outreach team can do.

2769
05:13:28,352 --> 05:13:31,686
and the last thing we talked about is developer impact fees because one of the biggest issues that we just discussed in the trial budget earlier was

2770
05:13:35,086 --> 05:13:35,086
affordable housing. We have to figure out together, and I know jillian

2771
05:13:39,152 --> 05:13:42,419
just mentioned in partnership with our capital advisory committee we need to figure out how do we better address impact fees. Because yes, it was

2772
05:13:46,386 --> 05:13:46,386
mentioned that some of the outer areas get paid a little bit more for those.

2773
05:13:51,586 --> 05:13:51,586
when you look at it and break it down, I asked you guys to give me a breakdown

2774
05:13:56,052 --> 05:13:56,052
of what the difference would be for a 20-unit complex versus a 70-unit complex

2775
05:14:00,952 --> 05:14:04,419
versus one home. And because of the way water lines work and the way the impact fees are set up, it doesn't proportionally change.

2776
05:14:07,952 --> 05:14:07,952
so a project that's 20 units' whole budget is so much smaller than one that's

2777
05:14:13,619 --> 05:14:16,986
larger we have to figure out a way to say we're going to decrease your I will packet fees because we know we want you to make your unit, your 20-unit complex affordable.

2778
05:14:23,319 --> 05:14:23,319
so all of that to say -- I know you guys said you would look at that and make a plan

2779
05:14:28,252 --> 05:14:31,786
for it. And it has been commented that we're not going to get any of that in the next three months. Those are all long-term

2780
05:14:34,852 --> 05:14:38,419
things. But I think what you guys can do is set real targets for us and give us real-time lines. So by the end of this year

2781
05:14:43,519 --> 05:14:43,519
we'll have a timeline for when you could see a new impact fee in place.

2782
05:14:48,952 --> 05:14:52,819
by the end of next -- by the end of three months you should at least get a target for some of the metrics that we sent. So I guess what I'm looking

2783
05:14:55,886 --> 05:14:55,886
for is targets, metrics, and timeline to be able to come back and say, you all have a

2784
05:15:01,686 --> 05:15:01,686
plan to address some of these issues that have come up time and time again.

2785
05:15:08,619 --> 05:15:12,319
so I want to thank all of you guys. I know it's been a gruesome several months. I hope you hear that my concern in wanting a delay

2786
05:15:17,219 --> 05:15:21,086
is coming from a place that I am so glad we have a municipally owned water utility and I want us to be the number one in the nation, and that means

2787
05:15:24,686 --> 05:15:28,652
sometimes we have to take a little bit of time to get things right, put things in place, so we all feel the confidence, and so that most importantly, our residents,

2788
05:15:33,952 --> 05:15:37,752
your owners, feel the confidence that we are doing the absolute right thing. So I hope you understand that that is where I'm coming from.

2789
05:15:41,719 --> 05:15:44,586
and lastly, I'd just like to say we are all colleagues up here. We all got elected to do this work. We may not all always agree,

2790
05:15:47,952 --> 05:15:47,952
but I would ask us to respect each other to the best of our abilities and

2791
05:15:52,619 --> 05:15:52,619
know that we are all trying to do the right thing and not interrogate any of us as

2792
05:15:57,052 --> 05:15:57,052
we are here on the dais. Thanks, mayor. >> mayor jones: councilman

2793
05:16:04,852 --> 05:16:04,852
whyte. >> whyte: thanks, mayor. To me today is -- there's

2794
05:16:12,652 --> 05:16:12,652
one central question and it's whether we are going to keep doing business as usual

2795
05:16:17,586 --> 05:16:17,586
or not. Last year I asked for an independent third-party

2796
05:16:24,252 --> 05:16:24,252
efficiency audit of saws. I was told it was going to happen.

2797
05:16:30,619 --> 05:16:30,619
in 2023 cps did it, the daymark company is the one that took it on.

2798
05:16:35,752 --> 05:16:35,752
many of us have reviewed it. And since that time while cps certainly not perfect, I

2799
05:16:42,886 --> 05:16:42,886
think we would all agree that the strides that have been taken by that utility

2800
05:16:49,986 --> 05:16:49,986
have moved it in a positive, forward-looking direction. I believe saws, while I

2801
05:16:57,719 --> 05:16:57,719
understand there's been internal audits done and internal metrics used, it is

2802
05:17:01,952 --> 05:17:01,952
my position that an independent third-party needs to review what's going

2803
05:17:07,752 --> 05:17:07,752
on so that just like cps that ceo rudy garza would implement all of the

2804
05:17:13,886 --> 05:17:17,252
recommendations and he really has gone about implementing the recommendations of the daymark group. Saws needs to do the same.

2805
05:17:23,219 --> 05:17:23,219
the issues with saws are widely known. Billions of gallons of water

2806
05:17:29,986 --> 05:17:29,986
being lost every year. It's water that then saws can't sell and it's water,

2807
05:17:34,852 --> 05:17:34,852
frankly, that also is damaging our streets and costing our city money.

2808
05:17:39,919 --> 05:17:42,819
we've had issues with saws in the development community. We've had the disconnection issues, battles with council, lack of

2809
05:17:47,919 --> 05:17:47,919
accountability on joint projects. You know that mou that was

2810
05:17:52,986 --> 05:17:52,986
referenced earlier really was a result of what we felt was a lack of accountability

2811
05:18:01,286 --> 05:18:01,286
on saws on the joint city-saws project taking place around the city.

2812
05:18:07,019 --> 05:18:07,019
and it took, what, nine months I think to get a simple mou in place.

2813
05:18:26,052 --> 05:18:26,052
you remember, robert, when we had that back and forth where when you took the

2814
05:18:30,319 --> 05:18:30,319
podium, you essentially said that day that on all joint cps -- when all joint saws

2815
05:18:36,686 --> 05:18:36,686
and city projects, when delays were caused, you pointed the finger what my

2816
05:18:54,052 --> 05:18:57,519
point is that day is it doesn't matter if it's the city or the saws. The citizens in san antonio just see one city government and don't care what is

2817
05:19:09,519 --> 05:19:12,586
happening but they can't get out of their driveways because the work is dragging on outside of their homes. I appreciate you and I sitting down after that and

2818
05:19:19,152 --> 05:19:19,152
talking through it because I think on that day what we realized is we both want --

2819
05:19:26,219 --> 05:19:26,219
we both want the same thing. I want to say publicly you have always been available

2820
05:19:36,686 --> 05:19:36,686
and accessible to me and any issue that I've called you with you've tried to fix.

2821
05:19:44,019 --> 05:19:44,019
and I greatly appreciate that and I greatly appreciate that after that

2822
05:19:49,186 --> 05:19:49,186
muc meeting there was a lot of collaboration between the city and saws to get that

2823
05:19:54,286 --> 05:19:54,286
mou in place. But today we stand, I believe, at a crossroads.

2824
05:20:08,419 --> 05:20:08,419
it's business as usual or actually get the change from this utility that we need.

2825
05:20:14,919 --> 05:20:14,919
and I do have some good news. I believe that the board

2826
05:20:19,886 --> 05:20:19,886
that is in place at saws at this point is committed to making change happen within

2827
05:20:28,186 --> 05:20:28,186
that utility. I've gotten to know the chair over the past six,

2828
05:20:34,486 --> 05:20:38,086
seven months. I knew she was widely respected before, but getting to work with her and talk with her about these issues has shown me that she

2829
05:20:44,619 --> 05:20:44,619
is a first rate professional and saws is lucky to have her as the chair.

2830
05:20:53,419 --> 05:20:53,419
the councilwoman dr. Rocha who I was lucky enough to get to serve with, you being

2831
05:20:58,019 --> 05:20:58,019
there along with greg mann, ed and some of the others I don't know, but I only know

2832
05:21:04,686 --> 05:21:04,686
by reputation, I believe the saws board is in a really good position to demand

2833
05:21:11,452 --> 05:21:11,452
change and to move the utility in a positive direction.

2834
05:21:17,052 --> 05:21:17,052
I also believe that our business community is finally getting, I guess, up

2835
05:21:30,886 --> 05:21:30,886
to speed on the issues that city council has known exists with saws or has

2836
05:21:37,052 --> 05:21:37,052
existed for quite some time. These letters of support that all of us have been

2837
05:21:43,852 --> 05:21:43,852
receiving over the past few weeks are very, very different than the letter of

2838
05:21:53,486 --> 05:21:53,486
support council is used to receiving in the past when one of our utilities has

2839
05:21:57,786 --> 05:21:57,786
requested a rate hike. If you look at each one of them, I think they all talk

2840
05:22:04,686 --> 05:22:04,686
about accountability, they all talk about transparency. Rather than just the three

2841
05:22:11,552 --> 05:22:11,552
or four sentences saying we need to invest in the utility for san antonio's

2842
05:22:15,986 --> 05:22:19,986
future, please approve the rate hike. Rather than that we have multiple page letters that address business community concerns with saws

2843
05:22:28,952 --> 05:22:32,352
operations. And I think that's extremely, extremely telling. And so with a good board in place and with the business

2844
05:22:40,619 --> 05:22:44,619
community now actively apprised of what's going on at saws and with a council that I know is determined to have a well-run positive utility that benefits the

2845
05:22:53,586 --> 05:22:53,586
citizens of san antonio, I think we're going to get there.

2846
05:23:00,686 --> 05:23:00,686
but as for this particular rate request, I don't believe the evidence is

2847
05:23:12,752 --> 05:23:12,752
there that today should make any councilmember feel confident that the numbers

2848
05:23:25,519 --> 05:23:25,519
have been crunched as they should have, that the money saws has spent in the past

2849
05:23:30,119 --> 05:23:30,119
has been wisely spent or that the revenue generated by a potential rate increase

2850
05:23:35,586 --> 05:23:35,586
will be wisely spent in the future. If this rate hike were to

2851
05:23:42,886 --> 05:23:42,886
pass, you're talking about somewhere in the neighborhood of 200

2852
05:23:47,719 --> 05:23:47,719
additional dollars a year per family that they would be spending on their water

2853
05:23:56,619 --> 05:24:00,419
bill. That's a lot of money to the average san antonio family. And you know, in the last couple of weeks I've had friends in the greater

2854
05:24:09,052 --> 05:24:09,052
san antonio community say, marc, I don't understand, what's the big deal, it's a

2855
05:24:14,186 --> 05:24:14,186
few dollars. What's really going wrong? I mean, there are only 11

2856
05:24:19,952 --> 05:24:19,952
people on this planet that are cast with the responsibility to monitor

2857
05:24:28,652 --> 05:24:28,652
this utility and make sure that it's doing right by its citizens.

2858
05:24:38,586 --> 05:24:38,586
we are the ones going to the neighborhood meetings, that are hearing the stories of

2859
05:24:42,952 --> 05:24:42,952
people literally not being able to get out of their driveway into their street

2860
05:24:48,486 --> 05:24:48,486
because it's been torn up again or that water is flowing down their street

2861
05:24:52,519 --> 05:24:52,519
and they're worried about their kids playing in it. We hear these stories every

2862
05:25:06,519 --> 05:25:06,519
week. And that's why we are in the best position to make this

2863
05:25:11,819 --> 05:25:11,819
decision today. While I'm not going to support it, my hope is that

2864
05:25:22,652 --> 05:25:22,652
in october or if you choose to delay and come back in january like somebody

2865
05:25:26,819 --> 05:25:26,819
mentioned may happen, whenever it is that you come back, I'm ready to have the

2866
05:25:34,319 --> 05:25:34,319
conversation again with a clearer plan. With defined metrics and

2867
05:25:41,452 --> 05:25:41,452
goals on some of the issues that my colleagues have raised.

2868
05:25:47,352 --> 05:25:47,352
we all want the same thing. And I know we're all willing to work together to get it.

2869
05:26:01,252 --> 05:26:01,252
but today I do not believe this council has enough evidence or should feel

2870
05:26:11,119 --> 05:26:11,119
confident enough to support this particular rate request.

2871
05:26:16,619 --> 05:26:16,619
thanks, mayor. >> mayor jones: thank you. >> mayor, can I --

2872
05:26:22,986 --> 05:26:25,252
>> mayor jones: go ahead, please. >> just to clarify again, to the extent that council members are asking for plans and metrics, that would be

2873
05:26:32,352 --> 05:26:35,619
something again that the saws board would need to consider working with saws leadership in terms of developing those, if they choose to do so.

2874
05:26:40,019 --> 05:26:40,019
so again, it's not something that the council would approve or -- it's something

2875
05:26:45,086 --> 05:26:45,086
that saws as an independent organization would have to come up with.

2876
05:26:50,519 --> 05:26:50,519
>> mayor jones: thank you, andy, for that. Jeff, do you have a second?

2877
05:27:00,086 --> 05:27:02,919
jeff is our public utilities analyst. Jeff, remind us how long you've been doing this? >> 25 years. >> mayor jones: 25 years.

2878
05:27:09,986 --> 05:27:12,952
okay. And you crunched the numbers and validated, checked the homework of saws, is that right? >> good team as well, yes.

2879
05:27:16,652 --> 05:27:20,619
>> mayor jones: okay. Are you confident with your number-crunching ability and your 25 years of experience as a public utilities analyst that what has been

2880
05:27:25,052 --> 05:27:25,052
brought forth, one, makes sense and is adequate to the work that is being

2881
05:27:30,486 --> 05:27:32,819
requested? >> I think it's reasonable and accurate, absolutely. >> mayor jones: great. Thank you for your expert advice.

2882
05:27:43,086 --> 05:27:43,086
councilwoman meza gonzález. >> gonzález: thank you. Just some clarifying

2883
05:27:47,919 --> 05:27:47,919
questions. I don't know if this is for andy.

2884
05:27:52,186 --> 05:27:52,186
the delay that's being asked for -- if this is for my colleagues to answer.

2885
05:27:59,519 --> 05:27:59,519
there is a list that is being talked about. I am not supportive of the

2886
05:28:03,986 --> 05:28:03,986
delay because folks keep referring back to a list and specific items that they've

2887
05:28:10,452 --> 05:28:14,152
dealt with in their district. So if there is a list, can there be a list, should those items be looked at by everybody on council?

2888
05:28:22,486 --> 05:28:22,486
and that's -- I guess what I'm kind of in the sake of transparency, and the

2889
05:28:29,286 --> 05:28:29,286
colleagues who have brought up issues is a list something that was shared

2890
05:28:37,719 --> 05:28:37,719
with everybody, when, how? >> what I understand, councilwoman, is there was a

2891
05:28:48,386 --> 05:28:50,452
list developed by some council members that was just a list of issues that they felt had -- wanted to talk to and have addressed through an interaction with

2892
05:29:01,219 --> 05:29:01,219
[indiscernible] and the key was it wasn't a list of anything that had to be

2893
05:29:05,786 --> 05:29:08,319
required or was contingent on them voting one way or the other. It was a list of issues that they wanted to address as the whole council was

2894
05:29:17,186 --> 05:29:20,286
considering this rate adjustment. >> gonzález: and what did the list entail? Like specific -- >> that one I would ask, I

2895
05:29:24,286 --> 05:29:27,552
mean, your colleagues in terms of the -- the issue you bring up in terms of information they're sharing in that, that's really a question more for your

2896
05:29:32,619 --> 05:29:32,619
colleagues. >> gonzález: can I ask any of my colleagues that have

2897
05:29:37,519 --> 05:29:41,052
brought up a list, you will send it to me right now? >> mayor jones: in the interest of transparency, if I asked -- if we're talking about delaying this and it's

2898
05:29:45,086 --> 05:29:45,086
based on a list that not everybody has seen, I'd ask you to go through your list

2899
05:29:49,386 --> 05:29:49,386
right now, please. I'd like to understand also who are part of the group.

2900
05:29:59,386 --> 05:30:01,852
>> kaur: I will let my council colleagues self-identify. I asked for anybody that was working on some of the issues I had faced so I

2901
05:30:05,852 --> 05:30:09,586
asked if anybody was speaking to me, I asked them and I can incorporate it. But I'll go through and read it all. Saws project construction,

2902
05:30:13,052 --> 05:30:16,886
communication and timely completion. Problems, saws has repeatedly failed to coordinate with public works and capital delivery on

2903
05:30:20,652 --> 05:30:24,419
concurrent projects, begun new construction without adequate notification to residents and delivered projects overbudget. This provides not providing

2904
05:30:29,352 --> 05:30:33,119
updates or informing council offices about delays. Request, a three year project review with a concrete plan including measurable targets for

2905
05:30:36,986 --> 05:30:36,986
improving on time and on budget delivery a and a defined protocol for working

2906
05:30:41,552 --> 05:30:41,552
with city departments and notifying affected residents for all projects.

2907
05:30:48,086 --> 05:30:48,086
problem, outdated infrastructure records are causing affordable delays --

2908
05:30:52,586 --> 05:30:54,386
avoidable delays when spreadsheet are already open. This is an operational failure that compounds construction fatigue and

2909
05:30:58,552 --> 05:30:58,552
erodes public trust in city government. Request, subservice utility

2910
05:31:03,186 --> 05:31:03,186
engineering with specific steps to ensure infrastructure is accurately

2911
05:31:07,619 --> 05:31:07,619
documented before construction begins. Post construction street

2912
05:31:11,986 --> 05:31:11,986
quality, [indiscernible] consistently deteriorates faster than roadways leaving

2913
05:31:16,852 --> 05:31:16,852
streets in worse condition than before. Partial repairs create

2914
05:31:21,686 --> 05:31:21,686
hazardous seams. However, not every repair requires curb to curb

2915
05:31:29,852 --> 05:31:29,852
[indiscernible]. Ensures completed work meets street standards.

2916
05:31:37,152 --> 05:31:37,152
>> mayor jones: colleagues, please. >> would it be easier if we

2917
05:31:41,519 --> 05:31:44,419
got a printout. >> kaur: I'm happy I can keep going. That was the first bucket. >> gonzález: I guess what I'm curious is if there is a

2918
05:31:48,419 --> 05:31:48,419
delay, what are the actions -- what are the action items that we're --

2919
05:31:53,852 --> 05:31:53,852
>> kaur: each one has a request. >> if I can interject --

2920
05:31:58,819 --> 05:32:01,552
>> gonzález: are we basing the vote on fulfilling that request? >> no, the short answer, councilwoman, is no, the vote cannot be contingent on

2921
05:32:06,686 --> 05:32:06,686
any action that is being -- that will or will not be taken by saws.

2922
05:32:11,352 --> 05:32:15,019
again, this was viewed to me as simply a list of issues they wanted to have discussed. So the answer to your question is no, there's no

2923
05:32:19,852 --> 05:32:19,852
tying of this list to any vote, there cannot be any tying.

2924
05:32:24,719 --> 05:32:28,386
>> and have saws address. >> to the earlier question, councilwoman kaur asks

2925
05:32:34,419 --> 05:32:38,019
people to self-identify. I was pushing -- obviously I've been pushing for water leaks for years now. We talked about the 430 woodlawn lakes loss of

2926
05:32:42,419 --> 05:32:46,419
water. We talked about in 2023 we essentially lost what we get from vista ridge in water leaks on our streets. We've also talked about how

2927
05:32:50,219 --> 05:32:50,219
these water leaks not only are scarce resource running down our streets, but it's

2928
05:32:55,086 --> 05:32:55,086
also messing up our streets that I mentioned earlier the city pays really good money

2929
05:33:00,719 --> 05:33:00,719
for. I also added about the construction, how saws

2930
05:33:04,752 --> 05:33:08,052
leaves our streets in disrepair, it impacts residents. And finally one of the last items on the list was audit. >> mayor jones: anyone

2931
05:33:13,219 --> 05:33:16,519
else want to self-identify. >> I'll also add I've talked to the councilwoman about the issues that I've presented. We have had conversations

2932
05:33:18,986 --> 05:33:18,986
about that. I probably told everybody up here my concerns that are

2933
05:33:23,386 --> 05:33:26,152
incorporated into that list also. Thank you. >> whyte: I'll say as well, nobody is voting because of anything that's

2934
05:33:29,819 --> 05:33:32,352
[indiscernible]. My understanding is these are issues that councilwoman and a couple of people had and wanted to relay to saws to get addressed at some

2935
05:33:37,519 --> 05:33:37,519
point in the future. But we're not voting because of a list or no list or

2936
05:33:42,419 --> 05:33:44,786
whatever. We're voting on the issue of whether or not it's appropriate to give a rate hike at this point in time. >> gonzález: I'm asking

2937
05:33:53,852 --> 05:33:57,519
what the action item is. They have been brought up to get to a delay, so I'm just asking what is the plan between now if there is a delay to whatever date is

2938
05:34:06,619 --> 05:34:06,619
being discussed? When we come back or -- >> so we've all laid out

2939
05:34:14,419 --> 05:34:18,086
questions and concerns and comments and feedback as it relates to rate increases, not just this one, but prior ones with cps even. And what I understand about

2940
05:34:24,086 --> 05:34:24,086
councilmember kaur is she is a convener of students I think she genuinely wants to

2941
05:34:29,519 --> 05:34:33,386
support this rate increase and see it pass. And what I determine from all this is she said hey, I've heard council members bring up all of these

2942
05:34:37,819 --> 05:34:39,752
concerns. These are the concerns of my constituents. I'm going draft a list and make it as easy as possible for saws to understand what

2943
05:34:43,319 --> 05:34:47,252
is it that my council colleagues are saying, especially the ones who are leaning no or are saying no. And so I saw the list this morning and I agree with a

2944
05:34:55,386 --> 05:34:58,619
lot of it. My vote is not contingent upon you addressing and solving all of it, but I think that what I imagine you want is feedback from

2945
05:35:03,186 --> 05:35:03,186
any of us who are considering voting no or leaning yes is what is it

2946
05:35:07,619 --> 05:35:11,286
that you want to see of saws? What is it about our vision, our leadership, our plan. What is it that y'all want to see as a body that owns

2947
05:35:18,386 --> 05:35:21,019
saws? So I think that's the spirit of the list. I don't think anybody's vote is contingent upon it and I want to clarify that.

2948
05:35:25,886 --> 05:35:29,886
I also don't know that that many people said indirectly. Thank you, mayor. >> mayor, I'd like to call

2949
05:35:34,419 --> 05:35:37,786
the question to the current motion. >> whyte: second. >> mayor jones: there's a call the question, which would end debate on the

2950
05:35:41,919 --> 05:35:41,919
motion to continue this item to october. >> I guess you don't have to

2951
05:36:00,686 --> 05:36:04,552
do f4, f2, whatever. >> I was talking to your staff. We don't have the information -- the question you asked.

2952
05:36:07,719 --> 05:36:11,619
we're trying to research it. But I was just talking to frank from your staff so we're going to work to try to find exactly what you're asking.

2953
05:36:14,319 --> 05:36:14,319
from the information we have, approximately 57% of your district would fall

2954
05:36:18,852 --> 05:36:21,519
within that 125 level poverty. So we would work with you and your staff to better identify what's going to be the penetration rate and

2955
05:36:24,652 --> 05:36:24,652
then how many people do we expect to then sign up on the uplift at 125 and then

2956
05:36:30,119 --> 05:36:33,619
if -- however this vote goes to 150. So we'll work with your staff to identify the exact question and then we'll try to get that detail for you.

2957
05:36:39,619 --> 05:36:41,652
>> mckee-rodriguez: thank you. I appreciate it. >> mayor jones: thank you, gavino. There's a motion and a

2958
05:36:54,252 --> 05:36:54,252
second to continue the item to -- I'm sorry, to call the question.

2959
05:36:58,319 --> 05:37:00,719
thank you. Which would end debate on this item. I understand there's some other folks that have flagged they still had

2960
05:37:04,152 --> 05:37:07,719
comments on this. Let me say that, for example, councilwoman castillo and others that may still want to speak on this item.

2961
05:37:12,352 --> 05:37:16,086
but it's been called to question. On that two-thirds are needed to pass. So a vote yens debate. Please vote.

2962
05:37:41,786 --> 05:37:41,786
the motion carries. Okay. So we are going to now go

2963
05:37:49,319 --> 05:37:49,319
back to the motion that was made to continue the item to october.

2964
05:37:54,752 --> 05:37:58,619
upon which we can still discuss. Not at all. Okay. Thank you. All right. So we are going to now vote on the motion to continue the item to october.

2965
05:38:06,886 --> 05:38:06,886
please vote. The motion carries. The time is now 3:37 p.m. On --.

2966
05:39:03,752 --> 05:39:03,752
no, we're going to exec. The time is now 3:37 p.m. On thursday, june 18th, 2026.

2967
05:39:11,452 --> 05:39:14,252
the city council of the city of san antonio will now meet in executive session to consult with the city attorney's office pursuant to chapter 551 of the texas

2968
05:39:17,586 --> 05:39:21,086
government code and to deliberate or discuss the following items:  economic development negotiations pursuant to 551.087, the purchase, exchange lee of

2969
05:39:25,352 --> 05:39:25,352
real property pursuant to 551.072. And legal issues related to

2970
05:39:29,986 --> 05:39:29,986
litigation involving the city, emergency >> mayor jones: the time

2971
05:39:39,663 --> 05:39:39,663
is now 4:38 p.m. On june 18, 2026 and the san antonio city council will reconvene

2972
05:39:45,697 --> 05:39:45,697
in open session. No action was taken in ex