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[00:00:09]

>> CLERK: CITY COUNCIL REGULAR B SESSION OF DECEMBER THE FIFTH, 2018.

>> CLERK: MAYOR, WE DO HAVE A QUORUM.

>> MAYOR NIRENBERG: GOOD AFTERNOON.

WELCOME TO OUR CITY COUNCIL B SESSION AGENDA, EVERYONE.

THE TIME IS 2:11 P.M.

THANK YOU ALL FOR YOUR PATIENCE.

WE HAVE GO ITEMS ON OUR AGENDA.

THE FIRST ITEM, I DO REALIZE THAT MANY PEOPLE ARE HERE TO DISCUSS ITEM 2, WHICH IS OUR TOURISM PUBLIC IMPROVEMENT DISTRICT.

ITEM 1 SHOULD MOVE VERY QUICKLY AND THERE IS A CONSULTANT FROM

[1. City staff and a consultant will provide the results of the 2018 Community Survey. The purpose of the survey was to gather community input on satisfaction with City services and benchmark with other municipalities. [Carlos Contreras, Assistant City Manager; Jeff Coyle, Director, Government and Public Affairs]]

OUT OF TOWN, SO WE WANT TO CLEAR THAT OUT QUICKLY IF I POSSIBLE.

SO WE'LL START WITH ITEM NUMBER ONE.

CITY MANAGER?

>> SCULLEY: MAYOR AND COUNCIL, GOOD AFTERNOON, HAPPY HOLIDAYS TO EVERYONE.

TODAY WE'RE PRESENTING THE RESULTS OF OUR 2018 COMMUNITY SURVEY.

THIS IS THE SIXTH ANNUAL BIANNUAL SURVEY CONDUCTED BY THE CITY GATHERING INPUT FROM OUR RESIDENTS ON THEIR SATISFACTION WITH CITY SERVICES.

WE STARTED THIS PROCESS 12 YEARS AGO, AND EVERY TWO YEARS WE SURVEY THE PUBLIC AND MEASURE OUR IMPROVEMENTS.

SO THROUGH A COMPETITIVE PROCESS, WE HIRED AN OUTSIDE FIRM TO CONDUCT THE SURVEY INDEPENDENT OF CITY STAFF.

WE HIRED ETC INSTITUTE TO CONDUCT THE SURVEY, AND THEY CONDUCT SURVEYS ACROSS THE COUNTRY, AND THAT ENABLES US TO COMPARE OUR RESULTS WITH OTHER MAJOR CITIES IN THE U.S. AND BENCHMARK OURSELVES.

SO CHRIS TATHEM IS HERE TODAY, HE'S THE ETC EXECUTIVE VICE PRESIDENT AND HE'S GOING TO BE SHARING THE RESULTS IN JUST A MOMENT.

MAYOR, I'D LIKE TO JUST HIGHLIGHT A COUPLE OF THINGS FROM THE SURVEY FROM THE RESULTS THIS YEAR.

OVERALL SATISFACTION WITH CITY SERVICES IN SAN ANTONIO IS 19, THAT'S 1-9 POINTS HIGHER THAN THE NATIONAL AVERAGE.

AMONG LARGE TEXAS CITIES, SAN ANTONIO RANKS FIRST IN OVERALL SATISFACTION, AND FROM 2016 TO 2018, THE LAST SURVEY THAT WE'VE DID, WE'VE EXPERIENCED SIGNIFICANT INCREASES IN AREAS THAT HAVE BEEN HIGH PRIORITIES FOR IMPROVEMENT SUCH AS OUR AIRPORT, 3-1-1, SPEAK UP BUDGET PARTICIPATION, AND ONE COULD ARGUE OUR FOCUS ON EQUITY, BECAUSE WE SAW A 9% INCREASE IN RESPONDENTS WHO AGREE WITH THE STATEMENT THE CITY IS RESPONSIVE TO THE NEEDS OF OUR RESIDENTS.

AND THEN PERHAPS NO SURPRISE, BUT OUR LIBRARY, FIRE DEPARTMENT, SOLID WASTE, PARKS AND RECREATION ALL HAVE SATISFACTION RATINGS AT 90% OR HIGHER.

THAT SAID, THE SURVEY ALSO INDICATED SOME POTENTIAL AREAS FOR IMPROVEMENT.

WE USE THIS INFORMATION IN OUR EXECUTIVE PERFORMANCE REVIEW, SO IN THOSE AREAS WHERE WE NEED IMPROVEMENT, THE PERFORMANCE PLANS FOR OUR EXECUTIVE STAFF HAVE A COMPONENT TIED TO OUR SURVEY OF THE COMMUNITY SERVICES THROUGH THE PROCESS, SO TODAY FOLLOWING THE PRESENTATION, OUR GOVERNMENT AND PUBLIC AFFAIRS DEPARTMENT WILL SHARE THE RESULTS IN DETAIL WITH EACH OF THE DEPARTMENTS.

WE HAVE IT BROKEN DOWN FOR EACH OF THEM, AND WE'LL CONTINUE TO MAKE IMPROVEMENTS TO BEST SERVE THE RESIDENTS OF SAN ANTONIO.

SO WITH THAT SAID, I WILL TURN IT OVER TO CHRIS TATHEM.

HE'S GOING TO GO THROUGH THE RESULTS, AND AS THE MAYOR SAID, WE'RE GOING TO TRY TO KEEP THIS BRIEF TODAY, BUT WE AS STAFF ARE AVAILABLE TO PROVIDE ANY ONE-ON-ONE BRIEFINGS TO COUNCILMEMBERS THAT MAY BE INTERESTED IN LEARNING A LITTLE BIT MORE ABOUT OUR COMMUNITY SURVEY RESULTS.

CHRIS, I'LL TURN IT OVER TO YOU.

>> SURE.

MAYOR, MEMBERS OF THE COUNCIL, IT'S GREAT TO BE BACK.

AS THE CITY MANAGER SAID, OUR FIRM SPECIALIZES IN HELPING LOCAL GOVERNMENTS GET INPUT FROM RESIDENTS TO IMPROVE DECISION-MAKING PROCESSES.

I'VE BEEN DOING THIS FOR ALMOST 30 YEARS.

I'VE ACTUALLY MANAGED OVER 2,000 SURVEYS.

IN FACT, ALL THE ZERO OTHER TEXAS TEXAS CITIES THAT YOU'RE GOING TO SEE DATA FOR I'VE MANAGED THEM ALL.

WE DO OVER 900 NATIONWIDE.

ONE OF THE REASONS WE COME -- OUR SKILL SET BRINGS IS WHEN PEOPLE RATE THING, OFTEN TIMES IT'S IMPACTED BICULTURAL NORMS, PEOPLE TEND TO LIKE PARKS, THEY TEND TO LIKE POLICE, THEY TEND TO NOT LIKE CODE ENFORCEMENT AS MUCH.

WHEN YOU HAVE THAT DATA, YOU DON'T KNOW IF YOU'RE DOING WELL UNLESS YOU HAVE SOME COMPARATIVE NORMS. I'M GOING TO SHOW YOU HOW YOU STACK UP TO OTHER COMMUNITIES AS WE GO OVER THE SURVEY DATA TODAY.

I GUESS WE'RE LOCKED UP HERE.

I'LL TRY ONE MORE TIME.

MY -- THERE WE GO.

AS FAR AS THE SURVEY ITSELF, THE CITY MANAGER MENTIONED YOU DO IT

[00:05:01]

EVERY TWO YEARS IS TO GIVE YOU REALLY AN OBJECTIVE ASSESSMENT OF WHAT THE AVERAGE RESIDENT THINKS.

LET ME PUT THIS INTO CONTEXT FOR YOU.

WE DID A NATIONAL STUDY ABOUT THREE YEARS AGO, AND WE ASKED PEOPLE HAVE YOU SHOWN UP OR ATTENDED A PUBLIC MEETING IN YOUR LOCAL COMMUNITY.

AND A WHOPPING 7% OF PEOPLE NATIONWIDE SAID, YES, THEY HAD DONE THAT.

WE THEN DID A FOLLOW-UP QUESTION WAS IT REALLY WITHIN THE LAST YEAR.

AS PEOPLE THOUGHT ABOUT IT, THEY REALIZED, OH, IT DROPPED TO 3%.

WE THEN ASKED PEOPLE WHY DID THEY GO TO THE MEETING.

NUMBER ONE REASON TO GET RECOGNITION OR SEE SOMEONE ELSE BE RECOGNIZED.

NUMBER TWO, THEY HAD A COMPLAINT THEY WANTED TO SHARE WITH THE CITY.

NUMBER THREE, THEY WANTED TO CHANGE THE WAY YOU DO YOUR OPERATIONS, SO PUBLIC PROCESSES AND MEETINGS ARE VERY, VERY IMPORTANT SO YOU CAN HEAR FROM THE SPECIAL INTEREST GROUPS IN THE COMMUNITY, BUT THE AVERAGE RESIDENT JUST WANTS TO GO ABOUT THEIR LIFE AND EXPECT GOOD LOCAL SERVICES.

WITHOUT A TOOL LIKE THIS, SOMETIMES IT'S HARD TO FIND OUT WHAT DOES THE AVERAGE RESIDENT OF THIS COMMUNITY THINK.

ARE WE DOING WELL? ARE WE NOT DOING SO WELL, WHAT SHOULD WE PRIORITIZE? AND A TOOL LIKE THIS HELPS WITH THAT PROCESS.

WHAT WE DID IS WE SELECTED A RANDOM SAMPLE OF HOUSEHOLDS IN THE CITY AND OUR GOAL WAS TO MAKE SURE THAT THE DATA WAS STATISTICALLY VALID FOR EACH OF THE 10 CITY COUNCIL DISTRICTS.

SO IF YOU LOOK AT THE RESULTS, YOU'LL FIND THAT WE HAVE 100 RANDOMLY SELECTED RESPONDENTS FROM EACH OF YOUR DISTRICTS.

THE SURVEY WAS ABOUT FIVE PAGES LONG, TOOK MOST PEOPLE ABOUT 10 TO 15 MINUTES TO COMPLETE, AND THEY WERE ABLE TO SEND IT BACK BY MAIL.

WE CALLED SOME FOLKS AND IT WAS ALSO AVAILABLE ONLINE, AND WE DID IT IN BOTH ENGLISH AND SPANISH, AND MONITORED THE DEMOGRAPHIC DISTRIBUTION TO MAKE SURE DIFFERENT DEMOGRAPHIC GROUPS WERE PROPERLY REP SENDED.

-- REPRESENTED.

IF YOU LOOK AT THIS CHART, IT SHOWS THE DEMOGRAPHIC BY KEY DEMOGRAPHIC, RACIAL.

SOMEBODY'S GOING TO ASK, THE RACE DOESN'T ADD UP TO 100%.

THAT'S BECAUSE WE HAD AN OTHER CATEGORY.

THEY MIGHT HAVE SEEN THEMSELVES AS MEXICAN OR ITALIAN OR SOMETHING LIKE THAT.

ALL IN ALL, WE FELT COMFORTABLE AOUT THE DEMOGRAPHIC DISTRIBUTION.

WE ALSO FELT GOOD ABOUT THE GEOGRAPHIC DISTRIBUTION.

THAT'S ONE OF THE CHALLENGES IN ONE OF THESE SURVEYS, AND YOU'LL SEE ON THIS MAP WE HAVE ABOUT 100 PLUS DOTS IN EACH OF THE COUNCIL DISTRICTS.

I'VE ALSO GOT A COUPLE MAPS TODAY AND THERE'S A LOT MORE IN THE REPORT WHERE YOU CAN ACTUALLY SEE ON MAPS HOW PEOPLE IN YOUR DISTRICT RATE DIFFERENT THINGS.

WITH THAT SAID, THE FIRST MAJOR FINDING WE HAVE TODAY SAYS GENERALLY PERCEPTIONS OF THE CITY ARE VERY GOOD.

I WANT TO JUST EMPHASIZE THAT FOR A LARGE CITY, SAN ANTONIO IS REALLY SETTING THE STANDARD AMONG CITIES -- NOT JUST HERE IN TEXAS, BUT THE ENTIRE NATION.

THE FIRST THING THAT JUMPS OUT TO ME IS 85% OF RESIDENTS GIVE THE CITY A RATING OF GOOD OR EXCELLENT AS A PLACE TO LIVE.

THE NUMBER THAT ARE GIVING SMALL IS JUST 2%.

SO FOR EVERY PERSON THAT SAYS THIS IS A TERRIBLE PLACE TO LIVE, THERE'S 50 PEOPLE AT LEAST THINK IT'S OKAY.

AND 42 PEOPLE OUT THERE THAT ACTUALLY THINK THIS IS REALLY GOOD OR EXCELLENT.

TAAS YOU LOOK DOWN THE LIST AS A PLACE TO WORK, A PLACE TO RETIRE, A PLACE TO START A BUSINESS AND FEELINGS OF SAFETY, THERE'S VERY LITTLE NEGATIVITY ON WHAT I CONSIDER TO BE THE STRATEGIC HEALTH ISSUES FOR A MAJOR CITY.

IF I'M GOING TO LOOK AT A CITY'S FUTURE AND HOW WELL THEY'RE DOING, I TEND TO LOOK AT THESE ITEMS, AND IF YOU'RE DOING WELL IN THESE AREAS, YOU TEND TO BE A CITY THAT OTHER PEOPLE WANT TO COME TO, THAT BUSINESSES WANT TO COME TO, AND THAT PEOPLE WANT TO STAY IN.

EVEN AS A PLACE TO START A BUSINESS, MOST OF YOUR PEOPLE DON'T HAVE ANY IDEA WHAT THAT REALLY INVOLVES.

ONLY 8% OF FOLKS GAVE NEGATIVE RATINGS COMPARED TO 64 GIVING POSITIVE, SO YOU'VE GOT AN 8 TO 1 RATIO OF POSITIVES TO NEGATIVES WHEN IT COMES TO PERCEPTIONS OF THE BUSINESS ENVIRONMENT OR HOW EASY IT IS TO START A BUSINESS.

THE OTHER THING THAT'S REALLY GREAT IS THERE'S A LOT OF EQUITY.

I KNOW ON CERTAIN SERVICES THERE ARE SIGNIFICANT DIFFERENCES WHEN YOU LOOK AT YOUR DISTRICTS.

I KNOW WE CAN REPRESENT THOSE DISTRICTS, BUT WHEN YOU LOOK CITYWIDE, ALL DISTRICTS EXCEPT FOR ONE, THE AVERAGE PERSON GAVE EXCELLENT RATINGS FOR THE CITY AS A PLACE TO LIVE.

AND YOU'LL SEE THE LIGHT BLUE AREA THAT AVERAGE PERSON GAVE GOOD RATINGS.

ABOUT THE CITY.

IN FACT, WHEN YOU SEE HOW YOU STACK UP TO OTHER COMMUNITIES, YOU'LL NOTICE WHEN IT COMES AS A PLACE TO LIVE, THE NATIONAL AVERAGE IS JUST 54% FOR LARGE CITIES.

YOU'RE 31 POINTS ABOVE THAT.

WHEN IT COMES TO A PLACE TO RAISE A FAMILY, YOU'RE AT 30 POINTS ABOVE THE NATIONAL AVERAGE.

YOU'RE AT 80.

THE NATIONAL AVERAGE IS 50.

AS YOU WORK YOUR WAY DOWN, PRETTY MUCH EVERY AREA YOU'RE AT OR SIGNIFICANTLY ABOVE AVERAGE.

THE CITY HAS DEFINITELY BEEN DOING SOMETHING RIGHT.

IT'S NOT AN ACCIDENT YOU GOT HERE.

I'VE BEEN DOING SURVEYS FOR THE CITY FOR OVER A DECADE, AND I'VE SEEN THAT THE CITY HAS CONSTANTLY TAKEN A LOOK AT WHAT THE NEEDS ARE AND YOUR PRIORITIES HAVE CHANGED SINCE I'VE DONE SURVEYS AND YOU'VE DONE A GOOD JOB FROM WHAT THE DATA TELLS US OF BEING RESPONSIVE TO THOSE NEEDS.

WHEN IT COMES TO HOW YOU'RE

[00:10:01]

STACKING UP OVERALL QUALITY OF CITY SERVICES, THIS IS REALLY IMPORTANT, BECAUSE AT THE END OF THE DAY WHEN WE ASK PEOPLE OVERALL HOW SATISFIED ARE YOU WITH CITY SERVICES, IT'S USUALLY VERY HARD FOR A LARGE CITY TO EQUITABLY DISTRIBUTE CITY SERVICES AT THE HIGHEST LEVEL.

YOU'LL CERTAINLY HAVE SOME DIFFERENCES WHEN IT COMES TO CODE ENFORCEMENT, MAINTENANCE ISSUES, AND YOU'LL SEE THAT IF YOU DRILL DOWN IN THE DATA, BUT YOU'LL NOTICE THE ENTIRE CITY IS IN THE SAME COLOR OF BLUE.

THAT MEANS IT DOESN'T MATTER WHERE YOU LIVE OVERALL SATISFACTION WITH THE CITY IS ABOUT THE SAME, AND THAT'S VERY, VERY DIFFICULT FOR A LARGE CITY TO ACCOMPLISH, ESPECIALLY ONE AS DIVERSE AS THIS CITY IS.

SO YOU'RE TO BE CONGRATULATED ON THAT.

AND AS YOU HAD MENTIONED BEFORE, YOU'RE 19% HIGHER THAN THE NATIONAL AVERAGE WHEN IT COMES TO OVERALL SATISFACTION WITH CITY SERVICES.

IN ADDITION, WHEN WE BREAK DOWN SOME OF THE SPECIFIC SERVICES THAT YOU PROVIDE, YOU'LL SEE THE MAJOR DEPARTMENTAL SERVICES LISTED ON THIS, AND TODAY I'M NOT GOING TO GET INTO EVERY ITEM THAT WAS RATED, SINCE WE DON'T HAVE THAT MUCH TIME, BUT YOU'LL SEE FOR THE MOST PART, THERE'S A LOT OF SERVICES THAT GET REALLY GOOD RATINGS, FIRE, PUBLIC LIBRARY, SOLID WASTE, PARKS AND RECREATION, 3-1-1 ARE ALL 70% OR MORE GIVING POSITIVES AND THEY ALL HAVE FEWER THAN 10% NEGATIVES. AND YOU MIGHT LOOK AT THIS AND SAY, WELL, WHAT IS NEUTRAL.

PEOPLE ALWAYS SAY, DO THEY DON'T KNOW? IF SOMEBODY DOESN'T KNOW, WE EXCLUDE THAT.

BUT WE TOLD PEOPLE TO RATE THINGS ON A SCALE, SO NEUTRAL IS IN THE MIDDLE OF THAT FIVE-POINT SCALE AND IT SIMPLY MEANS OKAY.

PEOPLE HAVEN'T REALLY EXPERIENCED ANYTHING REALLY GOOD OR REALLY BAD, BUT YOU'RE DOING A DECENT JOB.

AS YOU WORK YOUR WAY DOWN, YOU'LL NOTICE THINGS AT THE BOTTOM OF THE LIST, PLANNING SERVICES, CODE ENFORCEMENT, NEIGHBORHOOD AND HOUSING SERVICES AND TRANSPORTATION AND CAPITAL IMPROVEMENTS, ALL OF THOSE HAVE FEWER THAN 50% GIVING POSITIVE RATINGS AND RATHER SIGNIFICANT NUMBERS GIVING NEGATIVE RATING, AND YOU REALLY FALL INTO TWO MAJOR CATEGORIES.

YOU'VE GOT KIND OF YOUR HOUSING AND CODE ENFORCEMENTS WHICH ARE NEIGHBORHOOD RELATED, AND YOU'LL SEE YOUR PLANNING ALSO -- OFTEN HAS AN IMPACT ON TRAFFIC FLOW AND INFRASTRUCTURE.

WHEN WE LOOK AT HOW YOU STACK UP THE OTHER COMMUNITIES YOU'LL SEE ACROSS THE BOARD YOU'RE SETTING THE STANDARD IN MOST AREAS.

IN FACT, YOU'RE AT OR ABOVE THE NATIONAL AVERAGE IN EVERY AREA EXCEPT FOR ONE, AND THAT'S CODE ENFORCEMENT.

I THINK IT'S ONE OF THOSE REASONS THAT NEIGHBORHOODS AND YOUR CODE ENFORCEMENT RATINGS ARE RATED LOWER OVERALL BECAUSE THAT'S SOMETHING THAT PEOPLE CARE ABOUT.

I THINK WHAT'S HAPPENED AS A CITY, YOU'VE SET A HIGH STANDARD FOR SERVICE DELIVERY AND PEOPLE GET USED TO HAVING LOTS AND LOTS OF GOOD SERVICES, AND SO THEN WHEN SOMETHING ISN'T QUITE WHERE IT NEEDS TO BE, IT TENDS TO RISE UP AS A PRIORITY.

I WANT TO COMPLIMENT THE PARKS AND RECREATION SYSTEM, SOLID WASTE, PUBLIC LIBRARY AND YOUR POLICE SAFETY SERVICES, ALL OF THOSE ARE SIGNIFICANTLY HIGHER THAN THE NATIONAL AVERAGE.

SO GREAT JOB FOR EACH OF THOSE AREAS.

WHEN IT COMES TO YOUR POLICE SAFETY SERVICES, WHAT I WAS REALLY IMPRESSED WITH IS THAT EVERY SINGLE AREA RATED SIGNIFICANTLY ABOVE THE NATIONAL AVERAGE, SO YOU'RE REALLY DOING SOMETHING RIGHT WITH YOUR POLICE.

YOU MIGHT ASK, WHY IS PUBLIC SAFETY MORE AVERAGE WHERE PERCEPTION OF THE SERVICES ARE SO MUCH HIGHER, AND A LOT OF THAT'S REALLY BEEN A FUNCTION IN THE LAST COUPLE YEARS, WE'VE SEEN PEOPLE BE MORE CONCERNED ABOUT PUBLIC SAFETY.

IF YOU REMEMBER A FEW SLIDES AGO, THERE WASN'T A LOT OF NEGATIVITY, BUT SOME OF THESE MAJOR TERRORIST-TYPE EVENTS WHERE PEOPLE HAVE GONE IN AND SHOT PEOPLE FROM HOTELS AND THINGS LIKE THAT HAVE CAUSED PEOPLE TO FEEL LESS CONFIDENT IN THEIR SAFETY.

SO THE FACT THAT YOU HAVE A LOT MORE PEOPLE IN THE MIDDLE ISN'T NECESSARILY A REFLECTION OF THE SERVICE THAT YOU'RE PROVIDING, IT'S MORE A CONCERN THAT WE'RE SEEING NATIONALLY IN LARGE COMMUNITIES WHERE SOME OF THOSE THINGS IN SCHOOLS AND OTHER PLACES HAVE HAPPENED.

BUT JUST GREAT JOB ON THE POLICE SAFETY SERVICES SIDE.

YOUR SOLID WASTE, NOT SURE WHAT YOU'RE DOING HERE, BUT YOU'RE DOING IT RIGHT.

THIS IS A MAJOR PROBLEM AND DIFFICULTY FOR MOST LARGE CITIES.

IN FACT, WHAT I WANT TO POINT OUT IS THE AVERAGE FOR BULKY ITEM AND CURBSIDE BRUSH IS 54%, YOU'RE AT 88%.

AND PUTTING THAT IN PERSPECTIVE, THAT MEANS IN THE AVERAGE COMMUNITY, ONLY ONE OUT OF TWO PEOPLE ARE SATISFIED.

HERE IT'S NINE OUT OF 10.

SO YOU'VE REALLY ESTABLISHED A HIGH STANDARD FOR PEOPLE'S EXPECTATIONS WHEN IT COMES TO SOLID WASTE, SO YOU'RE TO BE COMMENDED ON THAT.

IN ADDITION, YOUR PARKS AND RECREATION SYSTEM, AMONG THE VERY BEST IN THE NATION.

LOOK AT YOUR CITY SWIMMING POOLS.

NATIONALLY IT'S ONLY FOUR OUT OF 10 PEOPLE FEEL GOOD ABOUT THEIR POOLS.

YOUR RATING IS MORE THAN DOUBLE THE NATIONAL AVERAGE AT 82%.

WALKING AND BIKELING TRAILS, YOU'RE NEARLY 30 POINTS ABOVE THE NATIONAL AVERAGE, MORE THAN 20 POINTS ABOVE THE NATIONAL AVERAGE HOW YOU MAINTAIN YOUR PARKS AND RECREATION CENTER.

NINE OUT OF 10 PEOPLE GIVE POSITIVE RATINGS.

WHEN WE COMPARED YOU TO OTHER LARGE CITIES, YOU MIGHT SAY HOW DO WE STACK UP.

WE ACTUALLY DO THESE SURVEYS, IN

[00:15:01]

FACT, I JUST FINISHED THE AUSTIN SURVEY, SO I'LL BE PRESENTING THAT SHORTLY, BUT I THOGHT YOU MIGHT BE INTERESTED TO HOW DO YOU STACK UP TO HOUSTON, AUSTIN, DALLAS AND FORT WORTH.

I WANT YOU TO CALL YOUR ATTENTION TO THE TOP LINEMENT THAT'S YOUR OVERALL RATING.

YOU ARE FIRST.

YOUR SATISFACTION RATING OVERALL IS AT 64%, AND THAT'S 8 PERCENTAGE POINTS ABOVE THE SECOND HIGHEST RATED CITY AT FORT WORTH.

AS I SAY, THE SURVEYS ARE ALL DONE THE SAME WAY, ALL BY OUR FIRM AND WE PROVIDE IT ALL OBJECTIVELY YEAR AFTER YEAR.

SO IF ONE OF THOSE CITIES DOESN'T DO GOOD, I SHOW UP AND LET THEM KNOW THEY DIDN'T DO SO WELL.

I'VE BEEN DOING WORK WITH ALL THESE CITIES FOR MANY YEARS WITH THE EXCEPTION OF HOUSTON WHICH HAS BEEN MORE ON AND OFF OVER TIME.

IN IN ADDITION, YOU'LL NOTICE YOU'RE IN THE TOP HALF, FIRST, SECOND OR THIRD IN EVERYTHING.

NO MAJOR DIFFERENCESIES.

THAT -- DEFICIENCIES.

THAT'S WHAT I FOUND THAT GREAT CITIES FOUND IS YOU DON'T HAVE AN AREA THAT'S A REAL PROBLEM.

THE TRANSPORTATION INFRASTRUCTURE, THOSE ARE THINGS YOU NEED TO PAY ATTENTION TO BECAUSE THEY'RE GREATER CONCERNED, BUT ALL IN ALL, YOU'VE DONE A REALLY GOOD JOB IN PUBLIC SAFETY AND PARKS AND RECREATION AND LIBRARIES, A LOT OF THE CORE THINGS PEOPLE TRULY EXPECT DAY IN AND DAY OUT.

ONE OF THE THINGS I CAN REALLY CLAIM TODAY IS YOU'RE DEFINITELY MOVING IN THE RIGHT DIRECTION.

I'M NOT JUST SAYING IT FROM MY PERSPECTIVE, I'M SAYING IT TO YOU FROM YOUR CITIZENS' PERSPECTIVE.

WHEN YOU LOOK AT THE DATA, 57% OF YOUR RESIDENTS THINK THE CITY IS BETTER OR MUCH BETTER THAN IT WAS A YEAR AGO.

ONLY ANOTHER 22% SAID IT WAS AT LEAST THE SAME.

ONLY 10% THOUGHT IT'S GOTTEN WORSE.

SO FOR EVERY PERSON WHO PROBABLY SHARES THEIR OPINION THAT THEY THINK THINGS ARE GETTING WORSE, THERE'S ALMOST SIX PEOPLE THAT COMPARED TO A YEAR AGO THINK THINGS HAVE GOTTEN BETTER.

SO YOU'RE DEFINITELY DOING THINGS THAT ARE CAUSING PEOPLE TO FEEL POSITIVE ABOUT THE COMMUNITY.

IN FACT, WHEN WE LOOKED AT THE DATA AND THE TRENDS, YOU'LL NOTICE THAT FROM ARE A LOT OF -- THERE ARE A LOT OF NOTABLE INCREASES.

I DIDN'T REALIZE THIS, BUT YOU'VE ACTUALLY BEEN EMPHASIZING THINGS LIKE 3-1-1, YOUR AIRPORTS, PARTICIPATION IN THE BUDGET PROCESS THROUGH SA SPEAK UP, AND YOU'LL NOTICE THAT ALL OF THESE AREAS LISTED HERE, YOU HAD A SIGNIFICANT INCREASE, PARTICULARLY IN THE ONES THAT YOU'VE BEEN FOCUSING ON.

YOU'LL SEE THE ONE AREA WE SAW SIGNIFICANT DECREASE, IN FACT, IT WAS THE ONLY MAJOR SERVICE THAT HAD SIGNIFICANT DECREASE HAD TO DO WITH SUSTAINABILITY EFFORTS.

I THINK A LOT OF THAT HAS TO DO WITH INCREASED EXPECTATIONS WE'RE SEEING NATIONALLY, ISSUES ABOUT THE ENVIRONMENT, RECYCLING, GLOBAL WARMING, ALL OF THOSE THINGS ARE RISING, AT LEAST AS PEOPLE'S EDUCATION, AND ONE OF THE RESPONSES THAT WE'VE SEEN THAT'S BEEN EFFECTIVE IS TELLING PEOPLE ABOUT WHAT YOU DO.

A LOT OF TIMES PEOPLE DON'T PAY ATTENTION TO THOSE.

YOU MAY HAVE THE SERVICES OUT THERE, BUT THEY MAY NOT KNOW WHAT THEY ACTUALLY ARE.

YOU CAN SEE THERE WERE SOME DECREASES, FIRE PREVENTION AND EDUCATION WAS DOWN, TRAFFIC MANAGEMENT AND THE ENFORCEMENT OF [INDISCERNIBLE] THOSE WERE THE OTHER AREAS THAT WE SAW SIGNIFICANT DECREASES BUT ALL IN ALL, THINGS ARE MOVING IN THE RIGHT DIRECTION.

SO THAT SAID, YOU MIGHT SAY, WELL, WHAT SHOULD WE FOCUS ON? I'VE BEEN DOING THIS A LONG TIME, AND WE DROPPED A FEW YEARS AGO A TOOL THAT DOESN'T JUST LOOK AT HOW WELL YOU'RE DOING, IT ALSO LOOKS AT WHAT PEOPLE THINKS IS IMPORTANT.

AND THE REASON I TELL YOU AND WE USE THIS TECHNIQUE IS SUPPOSE THAT YOU GO TO A RESTAURANT AND YOU WERE ASKED HOW SATISFIED YOU WERE WITH NAPKINS, THE COST OF THE MEAL AND THE QUALITY OF THE FOOD.

WELL, YOU MIGHT BE REALLY SATISFIED WITH THE QUALITY OF THE FOOD AND DISSATISFIED WITH THE NAPKINS THAT YOU GET, BUT THE NAPKINS MIGHT NOT HAVE ANYTHING TO DO WITH YOUR OVERALL PERCEPTION OF THAT RESTAURANT.

SO IF YOU ONLY LOOK AT THE SATISFACTION DATA, YOU MIGHT END UP -- SOMEONE MIGHT SAY, WOW, PEOPLE ARE REALLY DISSATISFIED WITH THE NAPKINS SO WE SHOULD DO A LOT MORE AND PUT GOLD-PLATED NAPKINS OUT THERE AND IT WOULD HAVEN'T ANY EFFECT.

THE SAME THING IS TRUE WITH YOUR CITY SERVICES.

ONE OF THE THINGS WE DO IS WE ACTUALLY LOOK AT HOW STRONGLY CORRELATED ARE THE OVERALL RATINGS FOR EACH DEPARTMENTAL SERVICE WITH OVERALL SATISFACTION WITH THE CITY.

IN OTHER WORDS, WHAT I WANT TO DO IS FIND OUT THE WAY PEOPLE RATE WHICH SERVICES REALLY IMPACT THEIR OVERALL RATING FOR THE CITY.

AND WHAT YOU'LL NOTICE ON THIS CHART IS THE SERVICE THAT HAS THE BIGGEST IMPACT OR THE MOST STRONGLY CORRELATED, WHAT WE CALL THE IMPORTANCE, IS POLICE SAFETY SERVICES.

IT'S NUMBER ONE.

IN FACT, IT HAS A GREATER INFLUENCE ON HOW PEOPLE RATE THEIR OVERALL SATISFACTION THAN ANYTHING ELSE.

NUMBER TWO IS TRANSPORTATION AND CAPITAL IMPROVEMENTS.

THREE, NEIGHBORHOOD AND HOUSING.

FOUR IS YOU GO DOWN TO YOUR PARKS AND RECREATION.

FIFTH IS YOUR SOLID WASTE.

SIXTH IS PLANNING SERVICES AND SEVENTH IS CODE ENFORCEMENT.

THE OTHER THING WE WANT TO LOOK AT IS HOW WELL ARE YOU DOING IN THOSE AREAS? SUPPOSE THAT EVERYBODY IS SATISFIED WITH POLICE, CAN YOU MAKE PEOPLE MORE SATISFIED BY SPENDING ONE LUN -- 100 MORE MILLION DOLLARS.

PROBABLY NOT.

IF PEOPLE SEE YOU SPEND TOO MUCH MONEY WHERE THEY'RE ALREADY SATISFIED THEY MIGHT THINK YOU'RE NOT USING RESOURCES WELL.

THAT'S WHY WE TAKE A LOOK AT HOW YOU'RE DOING IN THE AREAS, THOSE FOUR ITEMS SHADED RED, THOSE ARE THE AREAS THAT YOU RATE THE

[00:20:01]

LOWEST.

AND WHAT WE FOUND IS THAT COMMUNITIES THAT FOCUS THEIR RESOURCES IN AREAS THAT ARE OF HIGH IMPORTANCE, THAT HAVE LOWER SATISFACTION, THOSE TEND TO YIELD THE GREATEST IMPROVEMENTS -- OR THE GREATEST ENHANCEMENTS ON OVERALL SATISFACTION RATINGS IN THE FUTURE, WHICH IS THE REASON WE'VE RECOMMENDED THOSE FOUR THINGS FOR YOU TO FOCUS ON.

IT DOESN'T MEAN THAT YOU DON'T WANT TO CONTINUE DOING FIRE SERVICES AND PUBLIC LIBRARY SERVICES, BUT THOSE HAVE MUCH LESS INFLUENCE ON PEOPLE OVERALL SATISFACTION TODAY.

SO YOU COULD SPEND A LOT MORE MONEY ON THOSE AREAS BUT IT PROBABLY WOULD NOT CHANGE THEIR OVERALL VIEW OF THE CITY; WHEREAS IF YOU INVEST AT THOSE AREAS AT THE TOP OF THE LIST, THOSE WILL HAVE SOME OF THE BIGGEST IMPACT AS YOU MOVE FORWARD.

AS FAR AS SOME OF THE OTHER THINGS THAT WE LOOKED AT THAT WERE JUST CONSISTENT WITH THESE FINDINGS IS WE ASKED PEOPLE HOW THEY THOUGHT THE LEVEL OF FUNDING FOR VARIOUS BUDGET ITEMS SHOULD CHANGE.

YOU CAN SEE THE BIG LIST HERE.

SIGNIFICANTLY INCREASES IN BLUE, THE INCREASES IN WHITE.

YOU'LL NOTICE OF THE FOUR THINGS ON THERE, I WOULD TYPICALLY EXPECT TO SEE POLICE, FIRE, THAT'S TYPICALLY AT THE TOP OF A CHART LIKE THIS.

BUT YOU'LL NOTICE THAT YOUR STREET MAINTENANCE, TRAFFIC MAINTENANCE AND SIDEWALK CONSTRUCTION ARE ALL IN THE TOP FOUR.

THAT'S REAL CONSISTENT WITH YOUR TRANSPORTATION AND CAPITAL IMPROVEMENTS AND CONSISTENT WITH THE FINDINGS THAT WE FOUND IN THE IMPORTANCE SATISFACTION ANALYSIS WE DID, WHICH IS ONE OF THE REASONS THAT WE'VE RECOMMENDED THAT TO YOU.

SO JUST KIND OF WRAPPING THINGS UP, THE CITY IS CLEARLY MOVING IN THE RIGHT DIRECTION.

YOU'RE DOING A LOT OF GREAT THINGS.

IT SHOWS ME THAT YOUR PRIORITIES ARE ALIGNED WITH WHAT CITIZEN EXPECTATIONS ARE; HOWEVER, YOU HAVE OPPORTUNITIES TO DO BETTER.

ISSUES WITH YOUR NEIGHBORHOODS, OPPORTUNITIES TO DO BETTER IN TRANSPORTATION, TAKING CARE OF YOUR INFRASTRUCTURE ARE ALL IMPORTANT, AND THAT'S ONE OF THE REASONS WHY WE'VE HIGHLIGHTED THEM.

YOU SHOULD CERTAINLY CELEBRATE AT LEAST FOR A MOMENT, I KNOW YOU HAVE A LOT GOING ON TODAY, I USUALLY GET TO DELIVER BAD NEWS.

YOU HAVE TO REMEMBER, FOR EVERY GOOD NEWS, THERE'S BAD NEWS, SO I HOPE YOU'LL AT LEAST TAKE THE OPPORTUNITY TO CELEBRATE THE FACT THAT YOUR OVERALL SATISFACTION RATING IS 19% ABOVE THE NATIONAL AVERAGE.

YOU'RE THE NUMBER ONE RATED MAJOR CITY IN TEXAS AND ABOVE THE NATIONAL AVERAGE OF 33 OF 35 AREAS.

THAT DIDN'T COME BY SENT SO YOU'RE TO -- ACCIDENT, SO YOU'RE TO BE CONGRATULATED WITH THAT.

I DON'T KNOW IF THERE ARE ANY OTHER COMMENTS THE CITY WOULD LIKE TO SHARE.

WITH THAT, I'LL TAKE ANY QUESTIONS, MAYOR, IF THERE ARE ANY.

>> MAYOR NIRENBERG: GREAT.

THANK YOU VERY MUCH FOR THE PRESENTATION.

I NOTE A REMARKABLE ABSENCE IN MEDIA WHEN YOU DELIVER THAT NEWS.

[LAUGHTER]

>> MAYOR NIRENBERG: OH, JOEY'S HERE.

THANKS, JOEY.

ARE THERE ANY QUESTIONS? I DIDN'T SEE... COUNCILWOMAN GONZALES?

>> GONZALES: SO THANK YOU VERY MUCH FOR THE PRESENTATION.

I THINK THAT, YOU KNOW, WHAT WE HEAR AS COUNCILMEMBERS, FEEDBACK FROM OUR CONSTITUENTS ARE ALSO FAIRLY CONSISTENT WITH WHAT WE SEE HERE, PEOPLE'S PRIMARY CONCERN IS PUBLIC SAFETY, AND THEN AFTER THAT IS STREETS, DRAINAGE, SIDEWALKS, THAT SORT OF THING.

AND THEN I THINK FAIRLY CONSISTENT, I KNOW FROM WHAT I HEAR FROM MY CONSTITUENTS, BUT WE WERE PRESENTED A SURVEY, NOW THAT I THINK ABOUT IT, I FEEL LIKE IT WAS AT AN MPO MEETING IN OUR METROPOLITAN TRANSPORTATION MEETING, WHERE THEY WERE TALKING ABOUT TRAFFIC CONGESTION.

AND WHAT THE PRESENTATION SHOWED WAS THAT ACTUALLY THE TRAFFIC IS AS BAD AS IT'S ALWAYS BEEN, BUT PEOPLE WERE MORE TOLERANT OF IT BECAUSE THEY'VE GOTTEN USED TO BEING MISERABLE.

I MEAN, THAT WAS WHAT THE -- I'M SURE SOMEBODY HERE CAN -- YOU KNOW, I THINK --

>> I WAS THE ONE WHO PRESENTED THAT, SO...

>> GONZALES: OKAY.

YES.

AND I THINK I WAS CALLING YOU OUT ON THAT.

>> YOU WERE.

>> GONZALES: I WAS SAYING, THAT CAN'T BE GOOD POLICY FOR US.

>> RIGHT.

>> GONZALES: RIGHT, LIKE WE CAN'T SAY EVERYBODY'S USED TO BEING MISERABLE, SO WE'RE GOING TO GO AHEAD AND STAY THE COURSE.

SO WHAT IS -- HOW -- COULD THAT HAVE HAPPENED AT ALL IN YOUR STUDY?

>> WELL, I THINK IN REALITY, THE DIFFERENCE BETWEEN THAT STUDY IS LOOKING VERY SPECIFICALLY JUST AT TRANSPORTATION.

AND THE POINT FOR THAT WAS THAT PEOPLE HAVE BECOME MORE TOLERANT.

I MEAN, IT JUST HAPPENS.

IF YOU LIVE IN CHICAGO, YOU'RE MORE TOLERANT IN TRANSPORTATION THAN SIOUX FALLS, SOUTH DAKOTA.

YOU JUST SPECT -- EXPECT IT.

OVER TIME PEOPLE GET USED TO TRAFFIC FLOW GETTING WORSE.

IT DOESN'T MEAN THAT YOU WANT THAT.

IF YOU LOOK AT THE DATA, ONE OF YOUR MOST IMPORTANT ISSUES, THEY WANT YOU TO INVEST IN TRANSPORTATION AND THEY DON'T WANT IT TO GET WORSE.

SO TO SAY THE STRATEGY WE'RE JUST GOING TO MAKE EVERYBODY MISERABLE IN TRANSPORTATION, I DON'T THINK THAT'S A GREAT PUBLIC STRATEGY, BUT THE REALITY THERE IS SOME TOLERANCE PEOPLE WILL BUILD UP OVER THE TIME.

BUT I CAN SAY I'VE SURVEYED FOLKS IN AUSTIN THE SAME MANY YEARS, AND THEY'VE SEEN SUBSTANTIAL DECREASES IN TRAFFIC CONTROL BECAUSE THEY DID HAVE AN

[00:25:01]

EMPHASIS NOT TO DO ANYTHING WITH THEIR HIGHWAY SYSTEM THAT YOU'VE DONE AND IT'S HAD A REAL COST IN A NUMBER OF AREAS.

THEY USED TO BE ALMOST TIED WITH YOU IN THE OVERALL SATISFACTION RATING AND IF YOU LOOK AT THE DATA NOW, YOU'RE SIGNIFICANTLY ABOVE THEM.

>> GONZALES: I KNOW THAT WAS A DIFFERENT -- I MEAN, THAT WASN'T THE CITY.

>> RIGHT, IT WAS THE ENTIRE REGION.

>> GONZALES: AND SO I GUESS -- OF COURSE, THIS IS GREAT NEWS AND WE'LL TAKE IT.

I DON'T WANT TO QUESTION YOUR DATA TOO MUCH, SO THANK YOU FOR THAT.

AND I THINK THAT'S THE ONLY QUESTION THAT I HAD ABOUT IT.

SO I FEEL COMFORTABLE THAT IT'S ACCURATE, GIVEN THE FACT THAT I THINK THAT'S WHAT WE HEAR FROM OUR CONSTITUENTS AS WELL, AND THAT IT IS TRUE, I THINK, MOSTLY WHEN WE HEAR FROM OUR CONSTITUENTS, IT'S TO COMPLAIN ABOUT THINGS AND NOT NECESSARILY TO SAY WHEN THINGS ARE RUNNING WELL.

SO THIS GIVES US A GOOD SNAPSHOT OF WHAT PEOPLE, IN FACT, ARE SAYING BECAUSE THEY'RE DEFINITELY NOT GOING TO SAY I'M REALLY SATISFIED WITH X, Y, Z, THEY'RE JUST GOING TO SAY THEY'RE DISSATISFIED WITH SOMETHING.

SO THANK YOU VERY MUCH FOR THE PRESENTATION.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES.

COUNCILMAN COURAGE?

>> COURAGE: THANK YOU, MAYOR.

I JUST WANT TO KIND OF REASSURE MYSELF -- THIS IS THE FIRST TIME I'VE HEARD THIS.

HAS YOUR COMPANY DONE THE EXACT SAME KIND OF SURVEY IN ALL OF THOSE OTHER CITIES THAT YOU SAID WE'RE RATED AGAINST.

>> YEAH, THE ONLY ONE THAT HAS NOT DONE IT REGULARLY LIKE YOU IS HOUSTON.

WE'VE DONE SOME WORK IN HOUSTON AND WE'VE ASKED THESE QUESTIONS IN HOUSTON, BUT THE CITY ITSELF HAS NOT BEEN A REGULAR CLIENT OF OURS.

BUT IF YOU LOOK AT DALLAS, YOU LOOK AT AUSTIN, YOU LOOK AT I GUESS THE FORT WORTH, WE'VE BEEN DOING SURVEYS FOR EACH OF THOSE PLACES FOR MORE THAN A DECADE LIKE WE HAVE WITH YOU.

>> COURAGE: OKAY.

THANK YOU, THAT'S ALL.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.

COUNCILWOMAN VIAGRAN?

>> VIAGRAN: THANK YOU VERY MUCH.

THANK YOU FOR DELIVERING THIS GOOD NEWS, AND ALSO I THINK THIS IS A GREAT REPRESENTATION OF WELL-MANAGED DEPARTMENTS, SO THANK YOU, SHERYL, FOR YOUR LEADERSHIP AS OUR MANAGER AND HAVING GREAT LEADERS AS OUR DIRECTORS IN ALL OF OUR DEPARTMENTS WHO LISTEN AND MOVE FORWARD WITH THE DIRECTION, SO THANK YOU FOR THAT, SHERYL.

QUESTION, SLIDE 22, CAN YOU EXPLAIN -- OR DESCRIBE MORE ON WHAT DID THE TRAFFIC MANAGEMENT DECREASED MEAN? WHAT DOES TRAFFIC MANAGEMENT -- HOW WAS THAT DEFINED?

>> YEAH, IT'S NOT REALLY SPECIFICALLY DEFINED.

SOME OF THESE ARE HIGH-LEVEL QUESTIONS TO BE MORE WHAT I CALL STRATEGIC INDICATORS SO WE DIDN'T BREAK IT DOWN, IS IT RAILROAD CROSSINGS, IS IT STOPLIGHTS, BUT COMPARED TO WHERE YOU WERE TWO YEARS AGO, PEOPLE'S SATISFACTION WITH BASICALLY GETTING AROUND HAS GONE DOWN.

SO I THINK THAT SPEAKS TO THE COUNCILWOMAN'S COMMENT BEFORE THAT THERE IS SENSITIVITY ABOUT TRAFFIC FLOW AND PEOPLE'S SATISFACTION HAS DECREASED OVER THE LAST TWO YEARS.

>> VIAGRAN: OKAY.

>> YEAH, SURE.

>> COUNCILWOMAN, I MAY NOT HAVE BEEN ENTIRELY CLEAR, ASIDE FROM THE MAJOR CATEGORIES ABOUT TCI, THERE ARE A SERIES OF QUESTIONS ASKED WITHIN IT.

SO WITHIN THE TCI CATEGORY, THERE'S A QUESTION ABOUT THE QUALITY OF CAPITAL PROJECTS, OF FLOOD CONTROL EVENTS, OUTREACH EFFORTS TO KEEP THE PUBLIC INFORMED, TRAFFIC MANAGEMENT, SO OF THE SEVEN QUESTIONS THAT WERE ASKED WITHIN TCI, THAT WAS THE ONE THAT SHOWED A NOTABLE DECREASE.

THE OTHERS DIDN'T.

>> VIAGRAN: OKAY.

THANK YOU VERY MUCH.

AND YOU DID MENTION THAT YOU HAVE -- YOU ALSO HAVE MAPS OR THE ANSWERS PER DISTRICT.

>> EXACTLY.

>> VIAGRAN: THAT YOU ALL WILL PROVIDE US? THANK YOU.

>> MAYOR NIRENBERG: GREAT, COUNCILWOMAN VIAGRAN.

COUNCILWOMAN SAN SANDOVAL.

>> SANDOVAL: GREAT.

THANK YOU FOR THE PRESENTATION.

I ALSO SAW THE PRESENTATION WITH COUNCILWOMAN GONZALES.

I'D LOVE TO GET THE RESULTS AS WELL AS THE QUESTIONS SO WE CAN UNDERSTAND A LITTLE BIT MORE HOW THIS WAS DONE.

I HAVE A QUESTION, IN TERMS OF THE PEOPLE WHO RESPONDED TO THE SURVEY, DO WE KNOW IF -- WERE THEY ASKED IF THEY HAD USED THAT PARTICULAR SERVICE?

>> YEAH, I BELIEVE FOR SOME OF THEM, YES, BUT NOT FOR ALL OF THEM.

THAT'S A GOOD POINT.

SO...

>> SANDOVAL: SO JUST A HEAD'S UP, COMPANION PERRY AND I WERE DISCUSSING THIS THE OTHER DAY WHERE WE THINK THIS IS GREAT OVERALL INFORMATION, BUT WHEN WE REALLY WANT TO DRILL DOWN INTO PROCESS IMPROVEMENT AND HOW PEOPLE ARE REALLY ENJOYING OR NOT ENJOYING OUR SERVICES, WE REALLY WANT TO GET TO THE USER.

>> RIGHT.

>> SANDOVAL: AND FIND OUT HOW THEIR EXPERIENCE WAS.

>> AND THAT'S A GREAT POINT.

WE'VE ACTUALLY DONE SURVEYS JUST FOR YOUR LIBRARIES, WE'VE DONE SURVEYS FOR YOUR PARKS FOLK, WE'VE DONE CODE ENFORCEMENT.

THIS IS REALLY YOUR HIGH-LEVEL STRATEGIC PERFORMANCE.

LIKE OF LIKE YOUR WELL HEALTH PHYSICAL, AND IF YOU FIND OUT IF

[00:30:03]

YOU'RE NOT DOING WELL, YOU WANT TO DO SOME BLOOD TESTS, TO GIVE YOU A METAPHOR.

SO WE DO SOME OF THE SPECIFIC DEPARTMENTAL SURVEYS TO DIVE INTO THE DETAILS.

>> COYLE: COUNCILWOMAN, THERE ISN'T AN OPTION AHEAD OF TIME WHETHER YOU'VE USED THE SERVICE BUT THERE IS AN OPTION OF NO OPINION.

IF SOMEBODY'S ASKED ABOUT THE SA SPEAK UP PROCESS OR OPENED A BUSINESS IN THE CITY AND IT DOESN'T APPLY TO THEM, THEY'RE GIVEN THE OPTION OF SELECTING THAT ALSO.

>> SANDOVAL: THANK YOU.

SO I'M GLAD TO SEE THE NOTABLE INCREASE IN SA SPEAK UP, GREAT JOB TO GPA ON THAT.

AND I GUESS I HAVE A SIMILAR QUESTION TO COUNCILWOMAN VIAGRAN, IS SOME OF THESE DEPARTMENTS THAT WERE EVALUATED, YOU KNOW, WE HAVE THEM HERE.

I DON'T KNOW IF THEY HAVE THE EQUIVALENT IN OTHER AREAS, SO I DON'T KNOW HOW -- DOWELED YOU TALK TO HOW YOU -- COULD YOU TALK TO HOW YOU DO THAT COMPARISON, NEIGHBORHOOD AND HOUSING SERVICES, THAT'S NEW FOR US.

TRANSPORTATION AND CAPITAL IMPROVEMENTS, THAT USED TO BE, YOU KNOW, SEPARATE FUNCTIONS, RIGHT, SO COULD YOU SPEAK TO THAT?

>> YEAH, WHAT WE DO IS A LOT OF YOUR -- WE'RE LOOKING FOR SPECIFIC TYPES OF SERVICES, SO WE LOOK WITHIN THE DEPARTMENT.

SO WHEN YOU ACTUALLY LOOK AT THE COMPARATIVE DATA, THE REASON WE ONLY HAVE 35 FOR YOU IS BECAUSE SOME OF THE THINGS YOU DO ARE NAMED OR WORKED OR ORGANIZED VERY UNIQUELY COMPARED TO OTHER COMMUNITIES.

YOU HAVE LIBRARIES, OTHER PLACES DON'T HAVE LIBRARIES, AND SO THAT'S WHY WE'RE NOT ABLE TO DO COMPARISON FOR EVERYTHING.

BUT FOR THE ITEMS WHERE THERE IS PRETTY MUCH A CLEAR WAY THAT WE ASK IT ON THE SURVEY COMPARED TO THE WAY THAT WE ASK IT FOR OTHER COMMUNITIES, THOSE ARE WHERE WE PROVIDE THE COMPARISONS TO MAKE SURE THEY'RE PRETTY CONSISTENT.

>> SANDOVAL: ALL RIGHT.

THANK YOU.

I WAS REALLY SORRY TO SEE THAT LIBRARIES HAD THE LOWEST RANK OF IMPORTANCE.

HOW DID YOU DETERMINE THAT?

>> EYE JUST HAVE TO PUT IT -- YOU JUST HAVE TO PUT IT INTO PERSPECTIVE.

LIBRARIES ARE IMPORTANT TO FOLKS BUT RIGHT NOW BECAUSE YOU'RE DOING SO WELL -- THAT'S WHAT I WANT TO MAKE SURE EVERYBODY UNDERSTANDS.

THE IMPORTANCE RATING IS -- WE DIDN'T SAY HOW IMPORTANT ARE LIBRARIES? WHAT WE DID IS WE LOOKED AT THE CORRELATION COEFFICIENT WITH SOME STATISTICAL STUFF THAT LOOKS AT HOW DO PEOPLE'S RATINGS FOR LIBRARY CORRELATE WITH THEIR OVER ALL SATISFACTION WITH THE CITY.

AND IF THERE'S NOT A SCRONG CORRELATION THAT MEANS LIBRARIES RIGHT NOW THE RATINGS AREN'T WHAT PEOPLE LOOK LIKE FOR THE OVERALL SATISFACTION OF THE CITY.

IF YOU LOOK AT THE MOST IMPORTANT THING, NUMBER ONE IS POLICE.

THAT MAKES A LOT OF SENSE.

PEOPLE CARE ABOUT PUBLIC SAFETY, THEY WANT TO BE SAFE.

FIRE RATINGS ARE SO HIGH RIGHT NOW, IT DOESN'T MEAN -- IF I WERE TO JUST ASK PEOPLE, IS FIRE IMPORTANT.

THEY'D SAY ABSOLUTELY.

IT WOULD BE ONE OF YOUR TOP THREE MOST IMPORTANT BY PEOPLE SAYING IT.

BUT WHEN YOU ACTUALLY LOOK AT HOW IT IMPACTS OVERALL SATISFACTION, YOU'LL SEE IT'S FURTHER DOWN THE LIST.

AND PART OF THAT IS BECAUSE PEOPLE FEEL SO GOOD ABOUT FIRE AND SO GOOD ABOUT LIBRARIES, THEY'RE NOT REALLY IMPACTING THEIR PERCEPTIONS OF THE CITY AS MUCH RIGHT NOW, BECAUSE THEY HAVE OTHER CONCERNS LIKE THE TRANSPORTATION ISSUES, CODE ENFORCEMENT AND NEIGHBORHOODS IF THAT MAKES SENSE TO YOU.

>> SANDOVAL: NO, IT DOES.

WHAT KIND OF CORRELATION COEFFICIENT DID YOU GET?

>> IT RANGES.

SOME ARE CLOSE TO SIX, SOME ARE DOWN TO .2, WHICH ARE BASICALLY --

>> SANDOVAL: NOT RELATED.

>> NOT RELATED AT ALL.

>> SANDOVAL: THANK YOU.

THANK YOU VERY MUCH, MAYOR.

THANK YOU AND I THINK THAT'S THE FIRST TIME ANYONE ON CITY COUNCIL HAS SAID CORRELATION COEFFICIENT, SO... THANK YOU FOR THE PRESENTATION, CHRIS.

OH, GO AHEAD, MANNY.

>> PELAEZ: FOR MORE SHERYL AND THE TEAM, THANKS FOR THE HARD WORK.

THIS IS VERY VALUABLE.

THINGS THAT ARE NOT ON THIS LIST, BECAUSE OBVIOUSLY YOU CAN'T ASK EVERYBODY UNDER THE SUN, RIGHT, PEOPLE WILL ONLY TAKE SO MANY QUESTIONS BEFORE THEY HANG UP ON YOU BEFORE THEY HANG UP ON YOU, HOMELESSNESS IS NOT ON THIS LIST, OPIOID, AFFORDABLE HOUSING, ALL THAT STUFF, AND SO THESE ARE OPPORTUNITIES FOR, YOU KNOW, ADDITIONAL RESEARCH.

AND SO, SHERYL, HOW -- WHAT ARE YOUR PROPOSED NEXT STEPS, IF ANY, RIGHT, TO SORT OF DRILL DOWN ON SPECIFIC AREAS HERE OR TO BEEF UP THE NEXT TIME WE DO THIS SURVEY? BECAUSE I -- YOU KNOW, WE'RE SPENDING SO MUCH TIME ON THIS COUNCIL TALKING ABOUT AFFORDABLE HOUSING, BUT, YOU KNOW, I DON'T HAVE SORT OF A PERCEPTION OR SATISFACTION RATING, YOU KNOW, SHOWING ME THAT THAT'S AN IMPORTANT THING FOR CITIZENS, LET'S SAY.

>> SCULLEY: I DON'T KNOW, CHRIS OR JEFF, IF YOU WANT TO TALK ABOUT THE OTHER QUESTIONS.

WE DID HAVE A SECTION ON PUBLIC HEALTH, SO WHY DON'T WE --

>> YES.

GO AHEAD, JEFF.

>> SCULLEY: WE WERE TRYING TO KEEP THIS BRIEF THIS AFTERNOON, BUT THERE ARE QUESTIONS ALONG THOSE LINES.

>> COYLE: THE HOMELESSNESS WAS BAKED INTO A LITTLE BIT OF A LARGER QUESTION ABOUT HUMAN AND SOCIAL SERVICES ALTOGETHER, SENIOR, FAMILY ASSISTANCE, HOMELESSNESS, EARLY CHILDHOOD.

IT'S NOT TEASED OUT.

YOU'RE RIGHT, WE TRY TO KEEP THE SURVEY BRIEF, AND THIS ACTUALLY GOES BACK TO COUNCILMAN COURAGE'S QUESTION.

IN YEARS PAST, WE'VE SAT DOWN WHEN WE'RE WORKING WITH CHRIS TO PUT THE SURVEY TOGETHER, CAN WE REWRITE THIS QUESTION? CAN WE SHORTEN THIS, CAN WE DO THAT? AS SOON AS WE DO THAT, IT TAKES

[00:35:02]

AWAY FROM OUR ABILITY TO BENCHMARK AGAINST OTHERS BECAUSE IT'S GOT TO BE DONE THE SAME WAY.

SO WE -- IT'S A BALANCE TO TRY TO --

>> SCULLEY: ALTHOUGH AS WAS MENTIONED, WE DO DO SOME MORE SPECIFIC SURVEYS IN PARTICULAR AREAS, AND SO WE'RE HAPPY TO TALK WITH THE COUNCIL OR TO RECEIVE YOUR FEEDBACK AFTER THIS MEETING ABOUT THOSE AREAS THAT YOU WANT US TO DIVE DEEPER INTO THOSE OTHER SERVICES.

WE -- IT'S A BALANCE BETWEEN TRYING TO BE ABLE TO COMPARE OURSELVES TO OTHERS AS WELL AS DEMONSTRATE TO THE COUNCIL WHETHER OR NOT WE'RE IMPROVING.

AND FOR US IT'S ABOUT CONTINUOUS IMPROVEMENT.

WE WANT EVERY TWO YEARS, AND WE HOLD THE DEPARTMENT HEADS ACCOUNTABLE TO MAKE SURE THAT THEY ARE MAKING IMPROVEMENTS, AND YET THINGS CHANGE.

WE DIDN'T HAVE SCOOTERS 10 YEARS AGO WHEN WE STARTED THE SURVEYING WORK, AND OUR TRANSPORTATION ISSUES ARE DIFFERENT THAN THEY WERE THEN, SO -- BUT WE CAN GET MORE SPECIFIC AND HAPPY TO TALK WITH YOU MORE ABOUT IT.

>> MAYOR NIRENBERG: GO AHEAD.

>> SCULLEY: WE COULD DO THAT FOR YOU.

WE'VE BEEN DOING THIS EVERY OTHER YEAR, SO WE COULD PUT SOMETHING TOGETHER THAT SHOWS, FOR EXAMPLE, LIBRARY SERVICES OVER THE PAST 10 YEARS, OR NEIGHBORHOOD SERVICES, SO WE'LL TAKE A LOOK AT THAT AND SEE IF WE CAN ORGANIZE IT IN THAT WAY.

>>

>> SCULLEY: YES.

I THINK WHAT CHRIS SAID EARLIER, THOUGH, WAS THAT WE'VE BEEN ON AN UPWARD TRAJECTORY.

SOME ARE NOT AS UPWARD AS WE'D LIKE FOR THEM TO BE.

>> IF YOU LOOK, JUST THE LAST COUPLE YEARS YOU'VE REALLY DONE WELL.

YOU WERE KIND OF AT A REALLY HIGH POINT AROUND THE TIME THAT EVERYTHING WENT -- YOU KNOW, WITH THE ECONOMY IN 2008, THEN WE SAW KIND OF A DOWNWARDS -- ACROSS THE NATION.

A LOT OF FOLKS STILL HAVEN'T RECOVERED, BUT YOU CERTAINLY HAVE, AND SO THAT'S A REALLY TREMENDOUS WHATEVER YOU ARE DOING AS LEADERS, AS FAR AS MAKING DECISIONS TO PRIORITIZE, THAT'S A HUGE PIECE, BUT NEN IT'S ALSO THE EXECUTION, THAT'S PARTICULARLY HARD FOR CITIES AS BIG AS THIS, AS BIG AS SAN ANTONIO IS.

>> MAYOR NIRENBERG: THANK YOU VERY MUCH, CHRIS, AND THE POINTS THAT WERE MADE AT THE VERY END WHICH IS WHAT I WANTED TO EMPHASIZE.

TAKE IT FOR WHAT IT IS, LOOK AT THE TRENDS AND I THINK WE SHOULD TAKE COMFORT IN THE FACT THAT AT LEAST THE SURVEY RESULTS INDICATE THAT THE CITY, WE AS A BODY, ARE MOVING IN THE RIGHT DIRECTION, BUT CERTAINLY THIS IS A -- AN ORGANIZATION THAT'S DEDICATED TO CONSTANT AND CONTINUOUS IMPROVEMENT, SO WE WON'T BE RESTING ON OUR LAWYER ELS, WE -- LAURELS, WE HOPE TO GET A GOOD REPORT AT THE NEXT

[2. An overview of the proposed San Antonio Tourism Public Improvement District (SATPID). [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer, Finance]]

ITERATION, BUT THANK YOU VERY MUCH FOR YOUR REPORT.

>> THANK YOU.

>> MAYOR NIRENBERG: ALL RIGHT.

WE'LL MOVE NOW TO ITEM NUMBER TWO.

>> SCULLEY: THANK YOU, MAYOR.

OUR SECOND ITEM THIS AFTERNOON IS ABOUT OUR TOURISM PUBLIC IMPROVEMENT DISTRICT.

THE VISITOR INDUSTRY IS A KEY ECONOMIC GENERATOR FOR THE CITY OF SAN ANTONIO AND SAN ANTONIO HOSTING APPROXIMATELY 30 MILLION VISITORS AND PROVIDING MORE THAN 130,000 LOCAL JOBS.

SO VISIT SAN ANTONIO. WAS ASKED WITH MARKETING AND PROMOTION TO SAN ANTONIO FOR LEISURE GROUPS, BUSINESS TRAVEL, AS WELL AS SOME MAJOR SPORTING EVENTS THAT WE HAVE PARTNERED IN OVER THE PAST DECADE.

AFTER A YEAR OF STUDY AND COMMUNITY INPUT, THE CITY COUNCIL APPROVED THE TRANSITION OF VISIT SAN ANTONIO TO A 501(C)3 SIX, A PUBLIC/PRIVATE ENTITY, AND THAT WAS APPROVED BY THE COUNCIL IN OCTOBER OF 2016.

AS I SAID, THERE WAS A TASK FORCE OF LOCAL COMMUNITY BUSINESS AND TOURISM INDUSTRY REPRESENTATIVES THAT WORKED ON THAT TRANSITION.

SO ONE OF THE KEY CHARGES FROM THAT TRANSITION WAS TO ALLOW VISIT SAN ANTONIO TO EXPLORE ADDITIONAL FUNDING OPPORTUNITIES TO HAVE THE ABILITY TO EXPAND THE MARKETING INITIATIVES AND PARTNERSHIPS.

SO IN AN EFFORT TO PROVIDE ADDITIONAL FUNDING TO EXPAND THEIR SALES AND MARKETING, VISIT SAN ANTONIO, WITH THE HOTEL AND LODGING ASSOCIATION, PROPOSED THE CREATION OF A TOURISM PUBLIC IMPROVEMENT DISTRICT AS PROVIDED FOR IN STATE LAW.

ON JUNE 21ST OF THIS YEAR, THE CITY COUNCIL AUTHORIZED SOME AGREEMENTS RELATED TO THE PROPOSED CREATION OF WHAT WE'RE REFERRING TO AS THE TPID, AND, AGAIN, THAT'S THE TOURISM PUBLIC IMPROVEMENT DISTRICT, AND APPROVED THE SERVICE PLAN INCLUDING THE ASSESSMENT PLAN.

AND BEN GORZELL, OUR CHIEF FINANCIAL OFFICER, WORKED WITH VISIT SAN ANTONIO ON THE DEVELOPMENT OF THAT LANGUAGE THAT WAS PRESENTED TO THE CITY

[00:40:02]

COUNCIL AND APPROVED, ALONG WITH CASSANDRA MATE, OUR CEO OF VISIT SAN ANTONIO.

SO STATE LAW REQUIRES PETITIONS FROM AT LEAST 60% OF THE APPRAISED VALUE OF TAXABLE REAL PROPERTY THAT WOULD BE LIABLE FOR THE ASSESSMENT AND THE SIGNATURES THAT WERE REPRESENTED TO THE CITY CLERK'S OFFICE WERE VAL LATED REPRESENTING 64.5% OF THE RECORD OWNERS AN 74% OF THE APPRAISED VALUE; THEREBY MEETING THE REQUIREMENTS BY STATUTE FOR THE CREATION OF THE TPID.

SO THE ORDINANCE CREATING THE TPID IS PROPOSED FOR YOUR APPROVAL ON THE CITY COUNCIL AGENDA TOMORROW, DECEMBER 6, AND THIS BRIEFING WILL INCLUDE AN OVERVIEW OF THE PROPOSED ORDINANCE.

WE'LL BE AGAIN WITH BEN -- BEGIN WITH BEN GORZELL TALKING ABOUT THE STATUTE ALONG WITH OTHERS.

SO WITH THAT, I'LL TURN IT OVER TO OUR CHIEF FINANCIAL OFFICER, BEN GORZELL.

>> GORZELL: GOOD AFTERNOON, MAYOR AND COUNCILMEMBERS, AND THANK YOU, SHERYL.

AS SHERYL SAID, JOINING ME IN THE PRESENTATION TODAY WILL BE CASSANDRA MATE, LISA, PRESIDENT OF SAN ANTONIO HOTEL AND LODGE ING ASSOCIATION AND SCOTT.

SCOTT IS THE PRESIDENT OF THE TEXAS HOTEL AND LODGING ASSOCIATION.

SCOTT ACTUALLY SERVES AS GENERAL COUNCIL TO THE THREE EXISTING TPIDS THAT EXIST IN TEXAS TODAY.

THOSE ARE IN FORT WORTH, DALLAS AND ARLINGTON, HE ALSO HELPED DRAFT THE LEGISLATION THAT ALLOW S US TO CREATE A TPID.

SO HE'S HERE AS A RESOURCE AS WELL.

I'M GOING TO START ON JUST SOME BACKGROUND FIRST ON JUST THE HOTEL OCCUPANCY TAX.

A COUPLE OF THINGS HERE, THERE ARE OBVIOUSLY SOME STATUTORY REQUIREMENTS THAT WE HAVE TO FOLLOW, AND THEN WE HAVE SOME POLICIES THAT WE HAVE ADOPTED LOBE CALLIE, -- LOCALLY, SOME OF WHICH ARE INCLUDED WITH OUR BOND DOCUMENTS THAT FINANCED THE EXPANSION AT THE CONVENTION.

CURRENTLY OUR HOT TAX IS AT 16-POINT 7%.

6% OF THAT GOES TO THE STATE, 1.75% GOES TO THE COUNTY AND THE REMAINING 9% GOES TO THE CITY.

2% OF WHAT WE CALL THE CONVENTION CENTER EXPANSION HOT, ALL OF THAT FUNDING IS DEDICATED TO SUPPORT DEBT SERVICE ON THE EXPANSION OF THE CONVENTION CENTER.

AND THEN THE 7% HOT, WHICH PRIMARILY FUNDS OPERATIONAL CATEGORIES, BUT ALSO SUPPORTS DEBT SERVICE ON THE DEBT THAT WE'VE ISSUED FOR THE CONVENTION CENTER.

WE DID BACK IN 2012 AS PART OF THAT BOND FINANCING HAVE CITY COUNCIL ADOPT THE RESOLUTION THAT WE INCLUDED IN THE BOND DOCUMENTS, AND REALLY WHAT IT DOES IS IT TALKS ABOUT THE FLOW, AS WE COLLECT HOT TAXES, HOW DO WE USE THE HOT TAXES? AND THE FIRST THING THAT WE DO IS, AGAIN, WE USE ALL OF THE 2% HOT, WE'VE GOT TO USE THAT BY LAW FOR PAYING FOR DEBT AGAINST AND WITH THE EXPANSION WE NEEDED ADDITIONAL FUNDING AND WE NEEDED TO USE PART OF THE 7% HOT THAT WE WERE USING FOR OPERATIONS SO WHAT THAT POLICY SAYS ON THE 7% HOT SIDE, WE'RE GOING TO TAKE OFF WHAT WE NEED TO TO FUND DEBT SERVICE, AND THEN WHAT'S LEFT, WE CALL THAT THE NET HOT COLLECTIONS, THEN WE APPLY THE -- UP TO 15% FOR ARTS, THE 15% FOR HISTORY AND PRESERVATION, AND THEN THE OTHER CATEGORIES GO TOWARDS A DESIGNATION OF 35% FOR VISIT SAN ANTONIO AND THEN 35% TO SUPPORT OPERATIONS AT THE CONVENTION CENTER FACILITY.

SO THAT WAS IMPORTANT FROM A BOND PERSPECTIVE AND FOR OUR ABILITY TO BE ABLE TO FINANCE THAT EXPANSION.

WE NEEDED TO BE ABLE TO -- BOND ISSUE.

REMEMBER, THE EXPANSION WAS $325 MILLION.

WE ALREADY HAD SOME HOT REVENUE BONDS OUTSTANDING THAT WE FINANCED ALSO, SO WE'VE GOT JUST OVER HALF A BILLION DOLLARS OF BONDS THAT THIS RESOLUTION APPLIES TO IN TERMS OF HOW WE HANDLE DOLLARS THAT COME INTO THE FUND.

SO IT'S REALLY IMPORTANT FOR US, NOT ONLY FROM THE CREDIT RATING OF THAT PERSPECTIVE, BUT THE OVERALL ORGANIZATION.

THE HOT FUND ALSO PERFORMS LIKE AN ENTERPRISE FUND, SO WE HAVE HOT COLLECTIONS THAT COME INTO THE FUND, THEY SUPPORT OPERATIONS.

WE HAVE REVENUES THAT ARE GENERATED BY THE ALAMODOME AND THE CONVENTION CENTER, THINGS LIKE CONCESSIONS AND RENTAL REVENUES, ALL OF THAT GOES INTO THIS HOT PRO FORMA, AND WE USE IT AGAIN TO FUND THE OPERATIONS THAT I'VE TALKED ABOUT, BUT THE OTHER BIG PIECE OF THIS IS FUNDING THE DEBT SERVICE ON THE EXPANSION, BUT ALSO OUR FUTURE CAPITAL NEEDS.

WE'VE GOT TO ENSURE THAT THE TWO BUILDINGS, THE CONVENTION CENTER AND THE ALAMODOME REMAIN

[00:45:01]

ATTRACTIVE, THAT THEY'RE MARKETABLE AND COMPETITIVE, AND WE'VE TALKED ABOUT THE FACT THAT WE'RE GOING TO BE MAKING SOME IMPROVEMENTS TO THE ALAMODOME OVER THE NEXT COUPLE OF YEARS THAT ARE GOING TO HELP US HOST THE NCAA FINAL FOUR IN A FEW YEARS.

IN ADDITION TO THAT WE'VE GOT LIFE CYCLE REPLACEMENT THINGS IN THOSE FACILITIES THAT WE'VE GOT TO MAKE SURE WE TAKE CARE OF, MAJOR INFRASTRUCTURE, ROOFS, ELEVATORS, ESCALATORS, THINGS THAT WE MAKE SURE WE'RE ADDRESSING ON A TIMELY BASIS.

WHEN WE LOOK AT THE HOT TAXES, ALL OF THAT IS USED TO SUPPORT ALL OF THOSE ISSUES AND THE CAPITAL PROGRAM.

JUMPING OVER TO THE TPID SIDE AND JUST DOING A BRIEF INTRODUCTION, AGAIN, VISIT SAN ANTONIO IS OUR DESTINATION MARKETING ORGANIZATION.

THEY'RE RESPONSIBLE FOR THE MARKETING AND PROMOTION OF SAN ANTONIO.

AS WAS MENTIONED EARLIER, IN 2016 -- WHICH WAS A NEWLY CREATED 501(C)6 PUBLIC/PRIVATE ENTITY, AND IT WAS MEANT TO ACCOMPLISH TRANSITIONING THE MARKETING PROMOTION FUND FROM A CITY DEPARTMENT TO THIS OUTSIDE PUBLIC/PRIVATE ENTITY.

AND ONE OF THE THINGS WE WERE LOOKING AT TRYING TO ACCOMPLISH AS WE MADE THAT MOVE WAS TO ALLOW VSA WAS TO EXPLORE ADDITIONAL FUNDING OPPORTUNITIES.

FROM THE INCEPTION, WE% STARTED TALKING ABOUT THIS TRANSITION ONE OF THE THINGS WE MENTIONED AS A POSSIBLE FUNDING ALTERNATIVE TO BRING ADDITIONAL DOLLARS TO THE PROGRAM WAS THE CREATION OF A TPID, AND SO THAT WAS ONE OF THE EARLY FUNDING OPTIONS THAT WERE IDENTIFIED.

THERE IS A STATUTORY PROCESS THAT WAS MENTIONED THAT WE HAVE TO FOLLOW IN ORDER TO CREATE A TPID.

STATE LAW REQUIRES PETITIONS FROM MORE THAN 60% OF THE RECORD LIABLE FOR THE ASSESSMENT, A THAT'S GOT TO REPRESENT MORE THAN 60% OF THE APPRAISED VALUE OF THE TAXABLE VALUE THAT'S LIABLE FOR THE ASSESSMENT.

WE'VE GOT TO MEET BOTH OF THOSE THRESHOLDS.

THE CITY CLERK IS GOING TO PRESENT TOMORROW THAT SHE HAS CERTIFIED THAT BOTH OF THOSE THRESHOLDS HAVE BEEN METAPHOR CREATION OF THE TPID.

THOSE PETITIONS ARE REQUIRED TO BE PRESENTED TO YOU ALL AS CITY COUNCIL FOR VERIFICATION, AS FAR AS THE TPID, YOU'VE GOT TO INCLUDE A SERVICE PLAN, HOW THE FUNDS ARE -- HOW YOU'RE GOING TO OVERSEE THE FUNDS, THE FUNDING, AND THE BUDGET CATEGORIES.

PUBLIC HEARINGS ARE ALSO REQUIRED FOR THE CREATION OF THE TPID AND THE TPID ASSESSMENT.

NOW, I MENTIONED THAT THE TPID WAS TALKED ABOUT IN 2016, AS WE WERE LOOKING AT CREATING VSA AND TALKING ABOUT THIS TRANSITION, SO THEY BEGAN WORK WITH THEIR STAKEHOLDERS, HOTEL OWNERS ABOUT THIS CONCEPT ABOUT CREATING A TPID AND BEGINNING THAT PROCESS AND VETTING AND DOING THEIR DUE DILIGENCE.

AS THEY BROUGHT THIS FORWARD TO US AND SAID WE'RE NOT READY TO MOVE FORWARD WITH THE TPID, AND WE'D LIKE TO CREATE THIS, THERE WERE A COUPLE OF THINGS THAT THEY GAVE US OR PRESENTED TO US THAT WERE REALLY IMPORTANT FROM THEIR PERSPECTIVE, AS WE LOOKED AT THE PETITION, THE DRAFT PETITION AND THE MANAGEMENT CONTRACT.

ONE WAS THAT AS THEY WENT OUT AND PRESENTED THIS TO HOTEL OWNERS AND SAID WE WANT YOUR SUPPORT TO CREATE THIS TPID, THEY FELT LIKE IT WAS GOING TO BE REALLY IMPORTANT TO OUTLINE EXACTLY WHAT THE TPID FUNDS WERE GOING TO BE USED FOR.

SO THAT WAS CLEARLY INDICATED SO THAT HOTEL OWNERS KNEW WHAT THEY WERE SIGNING UP FOR.

THE SECOND PART WAS THAT THE FUNDING THAT WAS TO COME OUT OF THE TPID WOULD BE SUPPLEMENTAL AND NOT -- WOULD NOT SUP PLANT WHAT WE WERE -- SUPPLANT WHAT WE WERE ALREADY DOING TODAY, IN OTHER WORDS, NOT REDUCE THE FUNDING TO VISIT SAN ANTONIO AND HAVE TPID FUNDS REPLACE THAT, BUT RATHER MAINTAIN THE FUNDS THAT WE HAVE FOR VISIT SAN ANTONIO, AND ENSURE THAT THE TPID FUNDS WERE AN INCREMENTAL ADD TO WHAT WAS BEING DONE TODAY.

SO JUST KIND OF A TIMELINE OF HOW WE GOT TO TODAY, AGAIN, THEY DID A LOT OF DUE DILIGENCE AFTER THE TRANSITION WAS MADE TO VSA, IT WAS PROBABLY AROUND THE SPRING, EARLY SPRINGTIME FRAME WHEN THEY APPROACHED US WITH WANTING TO MOVE FORWARD WITH THE CREATION OF THE TPID AND WE BEGAN TO ■ENGAGEON THEDRAFT PETITION, THE MANAGEMENT CONTRACT AND THE OTHER DOCUMENTS THAT WERE REQUIRED TO CREATE THE TPID.

IN ADDITION TO THAT, IT'S BEEN TALKED ABOUT A COUPLE OF TIMES, ON AUGUST 30TH THERE WAS A B SESSION WHERE CASSANDRA DID MENTION AS PART OF HER BUDGET PRESENTATION THEY WERE DOING THEIR DUE DILIGENCE ON THE TPID AND IT WAS LOOKING FAVORALE AND THEY WOULD BE BRINGING IT FORWARD.

THERE WERE SOME INDIVIDUAL CITY COUNCIL AND STAKEHOLDER BRIEFINGS THAT OCCURRED, STAKEHOLDERS IN MANY OF THESE CASES WERE THE HOTEL OWNERSHIP GROUP AND THE INDUSTRY IN TERMS OF BEING BRIEFED ON WHAT THE PLAN WAS, AND THEN AS STAFF, WE DID GO TO THE ECONOMIC AND

[00:50:03]

WORKFORCE CITY COUNCIL SUBCOMMITTEE AND OUTLINED WHAT WE WERE MOVING FORWARD WITH, AND THEN ULTIMATELY BROUGHT THAT TO A SESSION ON JUNE 21ST.

AND BOTH OF THOSE MEETINGS, AS WE TALKED ABOUT THE PROCESS AND HOW WE WERE SETTING UP THE TPID, WE REITERATED THAT ONE OF THE THINGS THAT WAS IMPORTANT TO, AGAIN, THE INDUSTRY WAS THAT, ONE, THERE WAS GOING TO BE SOME CERTAINTY AROUND WHAT THE TPID FUNDS WERE GOING TO BE USED FOR, AND SECONDLY THAT WE WOULDN'T BE SUPPLANTING WHAT WE'RE DOING TODAY, BUT SUPPLEMENTING WHAT WE'RE DOING TODAY.

AND BECAUSE THOSE DRAFT PETITIONS AND THOSE DOCUMENTS ARE GOING TO BE APPROVED BY Y'ALL IN JUNE, THEN THEY WOULD BEGIN THE PROCESS TO GO GET SIGNATURES.

AND I KNOW THERE'S BEEN SOME CONVERSATION AROUND, YOU KNOW, CAN WE AMEND WHAT HAS BEEN PROPOSED OR BROUGHT FORTH TODAY.

THAT'S WHERE THE CHALLENGE REALLY COMES FROM, IS THAT ONCE WE APPROVE THE DOCUMENTS IN JUNE, THOSE DOCUMENTS WERE USED IN ORDER TO PROVIDE TO THE HOTEL OWNERS SO THAT WE COULD GET THEIR SUPPORT TO CREATE THE TPID.

AND SO THERE WERE REPRESENTATIONS MADE IN THOSE DOCUMENTS ABOUT HOW THE TPID FUNDING WOULD WORK.

AGAIN, SUPPLEMENTING, NOT SUPPLANTING WHAT WE WERE DOING TODAY, AND SO THOSE DOCUMENTS INCLUDE THOSE REPRESENTATIONS, AND THAT'S WHAT WAS SIGNED BY THE HOTEL OWNERSHIP, AND THEN SUBMITTED TO THE CITY CLERK'S OFFICE FOR VERIFICATION.

IN TERMS OF TOMORROW -- WELL, I'LL GO BACK.

SO ON JUNE 21ST, THERE WERE A COUPLE OF DOCUMENTS YOU DID APPROVEMENT YOU DID APPROVE A MASTER CONTRACT WHICH IS AN AGREEMENT BETWEEN THE CITY, VSA, AND THE SATPID CORPORATION, WHICH IS A PRIVATE CORPORATION THAT HAS BEEN CREATED TO OVERSEE THE TPID FUND.

THE DOCUMENTATION THAT WAS PRESENTED TO THE HOTEL OWNERSHIP WHICH INCLUDES THE PARAMETERS AND SOME OF THE REPRESENTATIONS I TALKED ABOUT THAT WAS PRESENTED TO THEM FOR THEIR SIGNATURE AND THEN A SERVICE PLAN THAT WILL COME BACK TO Y'ALL ANNUALLY FOR ADOPTION BUT THE SERVICE PLAN HAS GOT TO BE CONSISTENT WITH THE EIGHT-YEAR PLAN THAT WAS OUTLINED THERE, THAT SERVICE PLAN ESTABLISHES KEY MANAGEMENT AND THE FUNDING PARAMETERS, 40% MARKETING, 40% SALES, FIVE% RESEARCH PARTNERSHIPS AND 5% ADMIN.

ALL OF THOSE DOCUMENTS WERE APPROVED BACK IN JUNE AND THAT'S WHAT WAS USED AS WE MOVED FORWARD.

AND THEN WHAT YOU HAVE ON THE AGENDA TOMORROW IS ACTUALLY A PUBLIC HEARING TO LOOK AT -- AND THIS IS COMING FROM STATE LAW, THEY REFER TO IT AS THE ADVISABILITY OF THE CREATION OF A TPID.

YOU'VE GOT THE ABILITY TO ASSESS UP TO A 1.25% ASSESSMENT RATE, SO IT'S AN UP TO ASSESSMENT RATE.

WE'VE GOT THE CITY CLERK ON THE AGENDA TOMORROW AS WELL TO PRESENT THE PETITIONS AND SHE'S CERTIFIED THAT.

ONCE THAT CERTIFICATION'S DONE, THEN YOU'LL BE ASKED TO CONSIDER ESTABLISHING THE TPID AND THE ASSOCIATED MASTER CONTRACT AND THE SERVICE PLAN.

AND, AGAIN, FROM THE PERSPECTIVE OF THE WAY IT WAS DRAFTED AND THE WAY IT WAS OUTLINED WITH THE PETITIONS AND WHAT WE DID BACK IN JUNE MOVING FORWARD TO TOMORROW, WHAT YOU'LL BE ASKED TO DO IS EITHER SUPPORT AND ACCEPT THIS VERIFICATION OF THOSE SIGNATURES AND TO THE CREATION OF THE TPID, AND CERTAINLY YOU HAVE THE PREROGATIVE TO NOT ACCEPT THE TPID VERIFICATION AND NOT CREATE THE TPID.

YOU HAVE THE AUTHORITY TO DO THAT.

WHAT BECOMES DIFFICULT IS AMENDING OR CHANGING BECAUSE, AGAIN, THE PETITION HAD VERY OUTLINED PARAMETERS IN TERMS OF HOW THE FUNDING COULD BE USED.

WE'VE REVIEWED IT AND CITY STAFF IS RECOMMENDING APPROVAL OF THE ITEM TOMORROW, AND SO WITH THAT, I'LL TURN IT OVER TO CASSANDRA MATEJ AND LISA.

WE'RE GOING TO GO OVER MORE OF THE DETAILS OF WHAT'S GOING TO BE DONE WITH THE TPID FUNDING AND HOW THAT PROCESS WILL WORK.

CASSANDRA?

>> GOOD AFTERNOON, MAYOR, COUNCIL, CITY MANAGER.

GOOD TO SEE YOU AND GLAD TO BE HERE.

VISIT SAN ANTONIO HELD ITS ANNUAL MEETING LAST FRIDAY.

WE HAD OVER 500 STAKEHOLDERS AND MANY OF YOU ATTENDED, SO THANK YOU FOR ATTENDING, BUT ONE OF THE THINGS THAT WE ANNOUNCED WERE OUR NEW ECONOMIC IMPACT NUMBERS, AND WE PARTNERED WITH THE SAN ANTONIO HOTEL AND LODGING ASSOCIATION, ALONG WITH THE RESTAURANT ASSOCIATION AND TOURISM COUNCIL, AND WE'RE DELIGHTED TO SHARE WITH YOU THAT THE INDUSTRY IS THRIVING AND IT'S GROWING, AND THAT MEANS IT'S ALSO GROWING THE IMPACT TO THIS VERY COMMUNITY.

SO WE'RE HAPPY TO ANNOUNCE THAT TODAY FROM OUR 2017 NUMBERS, WE REPRESENT A 15.2 ECONOMIC IMPACT TO THIS COMMUNITY.

YOU HAVE PROBABLY HEARD ME ALL SAY IT MULTIPLE TIMES, BUT TRAVEL AND HOSPITALITY IS BIG BUSINESS FOR SAN ANTONIO.

ADDITIONBLY, WE WELCOME OVER -- ADDITIONALLY, WE WELCOME OVER 31 MILLION VISITORS TO THE CITY

[00:55:01]

AND BEXAR COUNTY IN 2017, AS WELL AS THE HOSPITALITY AND TRAVEL INDUSTRY CONTRIBUTES UPWARDS OF 419 MILLION IN TAXES AND FEES TO LOCAL GOVERNMENTS.

THAT'S OVER 200 MILLION TO THE CITY OF SAN ANTONIO.

SO ONE OF THE THINGS THAT I THINK PEOPLE ALWAYS THINK ABOUT, YES, VISITORS STAY IN HOTELS, THEY PAY A HOTEL TAX, BUT THEY ALSO SHOP AND DINE, DO A LOT OF DIFFERENT THINGS IN THE CITY, WHICH ALSO GENERATES SALES TAX.

AND THERE'S INCREMENTAL GROWTH TO SALES TAX, THAT OBVIOUSLY GOES INTO GENERAL FUND THAT CAN BE USED FOR PUBLIC SAFETY, ROADS, ET CETERA.

ADDITIONALLY, WE ARE -- WE EMPLOY OVER 140,000 PEOPLE IN SAN ANTONIO IN THE TRAVEL SECTOR, AND THAT IS 1 IN 7 THAT ARE EMPLOYED BY OUR INDUSTRY.

VERY PROUD TO BE SUCH A BIG EMPLOYER.

IN FACT, IT MAKES US THE TOP THIRD INDUSTRY IN SAN ANTONIO.

ONE OF THE THINGS I WANTED TO SHARE WITH YOU, AND THEN I AM GOING TO TURN IT OVER TO LISA, WAS KIND OF TO BACK UP SOME OF THE KEY PRINCIPLES, WHY WE WERE LOOKING TO GROW OUR BUDGET IN A SIGNIFICANT WAY.

AND THESE WERE ALL VERY MUCH PARALLEL OF WHAT WAS HAPPENING, I WOULD TELL YOU, IN THE LAST SEVEN TO 10 YEARS.

FIRST OF ALL, WE'VE ALL TALKED ABOUT THAT VSA'S, VISIT SAN ANTONIO'S BUDGET HAD REMAINED RELATIVELY FLAT.

SO WHEN YOU ARE LOOKING TO SPEND A DOLLAR ON MARKETING EXPENDITURES, BUT YET YOU'RE USING THE SAME DOLLAR AND THERE'S GROWTH IN COST, INFLATION, THAT DOLLAR DOESN'T GO AS FAR.

BUT COUPLE THAT WITH WHAT WAS HAPPENING IN OUR COMPETITIVE LANDSCAPE IN DALLAS AND HOUSTON, THEY PRACTICALLY DOUBLED THEIR BUDGET AND THEY STARTED MARKETING IN WHAT WE CAPTURED THE LEISURE MARKETING SEGMENT.

AND SO WE SAW THAT EVEN IN OUR OWN STATE, THAT THERE WAS SOME COMPETITIVE THREATS TO SOME OF THE MARKET SHARE THAT WE ARE CAPTURING.

AND THEN YOU COUPLE THAT IN ITS PARALLEL, THAT WE WERE, IF YOU LOOK AT A 10-YEAR PERIOD, WITHIN THE STATE, WE'RE STARTING TO LOSE SOME MARKET SHARE IN THIS SEGMENT IN OUR OVERALL OCCUPANCY RATES.

OUR OCCUPANCY PERCENTAGES IN THE HOTEL COMMUNITY HAS REMAINED VERY FLAT.

SO THOSE WERE THE DRIVERS OF WHY WE FELT IT VERY IMPORTANT TO LOOK AT ALTERNATIVE WAYS TO GROW THE OVERALL SALES AND MARKETING BUDGET.

IN JANUARY OF 2018, WE LAUNCHED A MEMBERSHIP MODEL.

WE HAVE OVER 315 MEMBERS OF VISIT SAN ANTONIO, SO TRADITIONAL PARTNERS, NONTRADITIONAL PARTNERS ARE ALL MEMBERS OF VISIT SAN ANTONIO.

AND SO WE HAVE PRIVATE DOLLAR SEGMENT -- PRIVATE DOLLARS PART OF OUR BUDGET THROUGH THAT MECHANISM.

BUT WE KNEW IN ORDER TO KIND OF CAPTURE AND GROW TO WHAT SOME OF OUR COMPETITIVES WERE, WE NEEDED SIGNIFICANT DOLLARS.

AND WE FELT LIKE THE TPID WAS THAT MECHANISM TO REALLY SEE SIGNIFICANT GROWTH OF INDUSTRY INVESTING IN INDUSTRY.

SO WITH THAT, I WANT TO TURN IT OVER TO LISA.

AGAIN, THE PRESIDENT AND CEO OF THE HOTEL AND LODGING ASSOCIATION BECAUSE THEIR ORGANIZATION HAVE BEEN REALLY LEADING THIS EFFORT AND WILL WALK YOU THROUGH SOME OF THE OPERATIONAL COMPONENTS.

>> GOOD AFTERNOON.

THANK YOU SO MUCH FOR INVITING US TO BE YOU TODAY.

SO I'M GOING TO BEGIN WITH HOW IT WORKS.

SO WE PROPOSE A 1.25% FEE -- SORRY -- YEAH, FEE ON THE HOTEL ROOM NIGHT STAY.

SO THAT WOULD -- THAT REVENUE COLLECTION WILL BE PART -- IT WOULD BE COLLECTED ALONGSIDE OF THE HOTEL OCCUPANCY TAX.

SO THE RULES THAT GOVERN HOTEL OCCUPANCY TAX COLLECTION WILL BE THE SAME RULES THAT GOVERN OVER THE TPID FEE.

SO IF YOU ARE EXEMPT FROM THE HOTEL OCCUPANCY TAX, YOU WILL ALSO BE EXEMPT FROM THE TPID FEE.

AND THE REVENUE THAT WILL BE COLLECTED WILL BE GIVEN TO VISIT SAN ANTONIO AND IT WILL BE PART OF VISIT SAN ANTONIO'S OVERALL BUDGET.

SO THERE WON'T BE A TPID BUDGET AND A VISIT SAN ANTONIO MARKETING BUDGET.

THE TPID REVENUE WILL BE ABLE TO ENHANCE WHAT VISIT SAN ANTONIO IS GOING TO DO WITH THEIR OVERALL MARKETING BUDGET.

AND IT ALSO ALIGNS IN TERMS OF THE TPID, IT WILL BE ABOUT AN EIGHT-YEAR COMMITMENT, AND IT WILL ALIGN WITH THE EIGHT-YEAR COMMITMENT LEFT IN THE MANAGEMENT AGREEMENT FOR VISIT SAN ANTONIO.

SO WE KNOW THAT HISTORICALLY AND WHAT CASSANDRA MENTIONED IN DALLAS, WE KNOW THAT THIS HAS BEEN VERY EFFECTIVE IN OTHER

[01:00:02]

COMMUNITIES IN BOOSTING THE TRAVEL AND TOURISM INDUSTRY IS GOING TO POSITIVELY IMPACT JOB GROWTH, QUALITY OF LIFE OPPORTUNITIES, INCREMENTAL TAX GROWTH, AND, OF COURSE, MORE OPPORTUNITIES FOR INVESTMENTS IN ARTS AND HISTORIC PRESERVATION.

SO IN TERMS OF THE ALLOCATION, ONE OF THE PRIORITIES THAT WAS MENTIONED EARLY IN THE PROCESS THAT WE LEARNED FROM HOTEL OWNERS AND IN OUR STAKEHOLDER MEETINGS IS THAT IT WAS VERY IMPORTANT TO FOCUS ON THE INVESTMENT IN THE BUDGET.

AND SO WE COMMITTED EARLY ON IN NEGOTIATIONS WITH CASSANDRA THAT WE WANTED 90%, THE LION'S SHARE OF THE REVENUE COLLECTION, TO GO TOWARDS -- SPECIFICALLY TOWARDS SALES AND MARKETING.

THIS WAS SOMETHING THAT WE NEGOTIATED BECAUSE WE FELT VERY STRONGLY THAT BECAUSE OF THE FLAT BUDGET, THAT THERE WAS THIS FLAT HOTEL OCCUPANCY AND WE REALLY WANTED TO DO SOMETHING ABOUT IT, WHICH HAS BEEN WHY WE MOVED FORWARD WITH OUR INDUSTRY SELF-ASSESSING A FEE TO MOVE THE NEEDLE ON THIS AND TAKING THIS BUSINESS RISK.

AND ULTIMATELY, WE PROJECT WITHIN THE FIRST YEAR THAT THERE WILL BE A $10.4 MILLION REVENUE, AND THAT ONCE WE ESTABLISH OUR CORPORATION BOARD, THAT THEY WILL THEN HAVE OVERSIGHT TO ENSURE THAT THERE IS A 7 TO 1 RETURN ON THE INVESTMENT FOR HOTEL OWNERS.

AND THAT'S ALSO PART OF THE MANAGEMENT -- NOT THE MANAGEMENT AGREEMENT, THE SERVICE PLAN THAT WAS ADOPTED BY COUNCIL AND WAS SIGNED BY HOTEL OWNERS.

AND SO THE WAY THAT WE HAVE CRAFTED IT AND PROPOSED IT TO HOTELS IS THAT WE ARE PROPOSING TWO ZONES, A DOWNTOWN CENTRAL BUSINESS ZONE, WHICH WE REFER TO AS ZONE 1, AROUND -- AND THEN ALL THE REST OF THE HOTELS WHO PAY THE SAN ANTONIO OCCUPANCY TAX THAT HAVE 100 ROOMS OR MORE WOULD BE IDENTIFIED AS ZONE 2, AND WE DID THAT UNIQUELY -- THE OTHER TPIDS IN THE STATE DO NOT HAVE DIFFERENT ZONES BUT WE FELT VERY STRONGLY THAT WE NEEDED TO HAVE REPRESENTATION FROM THOSE HOTELS WITHIN THE CENTRAL BUSINESS DISTRICT WHO HAVE A DIFFERENT SET OF PRIORITIES FOR HOW MARKETING DOLLARS WOULD BE SPENT.

DOWNTOWN OBVIOUSLY VERY IMPACTED BY CONVENTIONS, THAT WOULD BE A FOCUS ON INVESTMENT IN HOW WE WOULD BOOST OPPORTUNITIES DOWNTOWN.

AND THEN IF YOU ARE OUT ON 1604 OR IF YOU ARE OUT AT THE AIRPORT, MARKETING OPPORTUNITIES LOOK DIFFERENT FOR YOU, AND YOUR INTEREST IN BOOSTING MARKETING OPPORTUNITIES ARE NOT THOSE OF THOSE HOTEL OWNERS IN ZONE 1.

SO THIS IS UNIQUE TO SAN ANTONIO, SOMETHING THAT WE'RE VERY PROUD OF.

AND THEN, OF COURSE, BECAUSE OF THE DIVERSE NEEDS, OUR TPID CORPORATION BOARD WILL HAVE DIVERSE REPRESENTATION OF HOTELS THAT ARE LARGE BRANDS, INDEPENDENT, FULL-SERVICE, SELECT-SERVICE, OWNERS, SALES, OPERATORS, GENERAL MANAGERS.

SO WE ARE EXCITED ABOUT BEING ABLE TO REPRESENT -- HAVING LOTS OF REPRESENTATION FOR IDENTIFYING THE PRIORITIES FOR THE TPID.

SO THE PROCESS: IN ORDER TO MEET OUR COMMITMENT THAT WE SET OUT IN BOOSTING THE BUDGET, WE STARTED A DIALOGUE TWO YEARS AGO AND WE STARTED CREATING MEETINGS, WE HAD STAKEHOLDER MEETINGS, WE TOOK OUR SHOW ON THE ROAD AND HAD TOWN HALL MEETINGS.

WE HAVE LEARNED A LOT ABOUT WHAT HOTEL OWNERS ARE LOOKING FOR, WHAT THEIR CONCERNS ARE, AS BEN MENTIONED THERE WERE SOME NEGOTIATION THAT WE WERE HOPING TO ACHIEVE TO PROVIDE SOME CERTAINTY FROM HOTELS -- OR FOR HOTELS THAT THEY ARE GOING TO -- THIS IS GOING TO BE AN ADDITIONAL INVESTMENT BY HOTELS IN ORDER TO MOVE THE NEEDLE ON WHAT WE CAN DO COLLECTIVELY.

AND SO THERE WAS A LOT OF EDUCATING AND A LOT OF COLLECTING INPUT.

OF COURSE, WE'VE ALL MET WITH YOU-ALL MULTIPLE TIMES, SO ONCE WE GOT COUNCIL ADOPTION, THEN WE WENT OUT -- AT THE JUNE MEETING -- THEN WE WENT OUT TO START COLLECTING SIGNATURES.

AND IT WAS A FULL-COURT PRESS.

WE HAD A STRATEGIC PLAN ON HOW WE WERE GOING TO GO COLLECT THEM.

WE HAD TO EDUCATE A LOT OF OUR MEMBERS TO GO AND THEN EDUCATE THEIR OWNERS.

BECAUSE, OBVIOUSLY, NOT ALL HOTEL OWNERS ARE IN SAN ANTONIO.

THEY ARE EVERYWHERE.

AS THE CITY CLERK HAS LEARNED, IT'S A VERY COMPLICATED SCENARIO OF WHO ARE THE OWNERS, WHO CAN SIGN, WHO REPRESENTS WHO.

THERE ARE ASSET MANAGERS.

THERE ARE PROPERTY MANAGERS OR GENERAL MANAGERS.

IT'S A VERY COMPLICATED INDUSTRY.

AND SO WE WENT OUT AND WENT OUT AND GOT SIGNATURES.

IN FACT, SURPASSED THE MINIMUM NEED THAT THE STATE REQUIRED.

SO WE'RE VERY PROUD OF THIS.

WE'RE VERY PROUD OF THE FACT

[01:05:01]

THAT WE WERE ABLE TO CONVINCE A LOT OF PEOPLE THAT THIS IS GOING TO, EVEN THOUGH IT'S A BUSINESS RISK AND IT'S A SELF-ASSESSED FEE THAT THIS ULTIMATELY WILL NOT ONLY IMPACT AND BENEFIT THE INDUSTRY, BUT REALLY IT'S GOING TO BENEFIT AND IMPACT THE ENTIRE COMMUNITY.

THAT KIND OF WRAPS UP MY COMMENTS.

BUT, AGAIN, I WOULD LIKE TO THANK YOU FOR INVITING US HERE TODAY.

I BELIEVE THAT WE HAVE A GREAT STORY TO TELL AND WE ARE HAPPY TO BE ABLE TO TELL IT ONE MORE TIME.

I WOULD BE HAPPY TO ANSWER ANY QUESTIONS, THAT'S WHY I BROUGHT SCOTT.

[LAUGHTER]

>> MAYOR NIRENBERG: OKAY.

THANK YOU VERY MUCH FOR THE PRESENTATION, LISA AND CASSANDRA AND BEN.

SO I KNOW THERE'S GOING TO BE SOME CONVERSATIONS THAT WE HAVE ABOUT OTHER ISSUES, BUT I FIRST WANT TO SAY THAT WE'VE HAD -- I'VE HAD MIXED FEELINGS ABOUT VSA WHEN IT STARTED IN 2016.

AND ONE OF THE REASONS WAS I DID NOT BELIEVE THAT RELINQUISHING THE CITY COUNCIL'S OVERSIGHT OF THE CONVENTION AND VISITOR'S BUSINESS WAS A SILVER BULLET TO THE FACT THAT WE WEREN'T ABLE TO STAY COMPETITIVE.

WHAT I HAD CHARGED VSA WITH WAS FINDING NEW REVENUE, AND NOT FROM THE CITY.

FINDING REVENUE STREAMS THAT WOULD ALLOW US TO CONTINUE TO GROW THE MARKET SHARE OR KEEP UP WITH THE MARKET SHARE REALLY, BUT ALSO REMAIN COMPETITIVE IN AN INCREASINGLY DYNAMIC INDUSTRY.

I WOULD ALSO SAY THAT IT'S NOT LOST ON ANY OF US HERE THAT THE VISITOR AND TOURISM BUSINESS IS THE BENEFICIARY BUT ALSO THE BENEFACTOR OF A LOT OF PROGRESS IN SAN ANTONIO.

THAT BEING SAID, OUR ECONOMY IS GREATLY DIVERSIFIED SINCE THEN.

WE HAVE ADDED A LOT OF NEW INDUSTRIES.

WE ARE EXPERIENCING A GREAT GROWTH HERE IN SAN ANTONIO.

THE VISITOR INDUSTRY HAS ALWAYS BEEN STEADFAST AND HAS REMAINED A STRONG PILLAR INDUSTRY.

SO I REMAIN SUPPORTIVE OF THE TPID.

I THINK IT'S IMPORTANT THAT WE UNDERSTAND THAT AS WE CONTINUE TO LEAN ON DIFFERENT INDUSTRIES WE DON'T ABANDON THE STRENGTH OF ANY SINGLE ONE INDUSTRY.

SO I DO APPRECIATE THE ADDITIONAL CONVERSATIONS WE'RE GOING TO HAVE AND I HOPE -- I'M GOING TO MAKE SOME STATEMENTS ABOUT THAT AS WE MOVE FORWARD TODAY.

BUT I DO WANT TO MAKE SURE THAT WE UNDERSTAND THAT THE SERVICE AGREEMENT, THE CONTRACT THAT WAS APPROVED IN JUNE REMAINS WHAT WE ARE TALKING ABOUT TODAY.

AND I REMAIN FULLY SUPPORTIVE OF THAT AND I HOPE THE COUNCIL WILL AS WELL.

WITH THAT, I'M GOING TO MOVE NOW TO COUNCIL COMMENTS AND QUESTIONS.

AND I'M SURE WE'RE GOING TO GO A COUPLE OF ROUNDS OF THIS.

COUNCILMAN SALDANA.

>> THANK YOU, MAYOR.

>> SALDANA: THANK YOU, MAYOR.

AND THANK YOU AGAIN TO CASSANDRA AND LISA AND TO SCOTT FOR VISITING US.

WE HAD A ONE-ON-ONE.

WE HAD AN OPPORTUNITY TO TALK THROUGH SOME OF THE AGREEMENTS, SOME OF THE SPECIFICS.

BUT IF I CAN, I WOULD LIKE TO START WITH BEN, ASK HIM A FEW QUESTIONS.

LET ME FIRST START OFF BY SAYING I'D LOVE NOTHING MORE THAN TO NOT BE A HEADACHE.

AND FOR THOSE FOLKS WHOM I HAVE BEEN A HEADACHE FOR ON THIS ISSUE, I APOLOGIZE.

MORE THAN ANYTHING I WOULD LOVE TO WALK IN HERE AND BE AGREEABLE AND GO ALONG ON THIS, BUT WITH AN EIGHT YEAR CONTRACT WORTH OVER $100 MILLION IT'S WELL WITHIN MY POSITION AS COUNCIL AND POLICYMAKER TO ASK A FEW QUESTIONS.

I HOPE IT DOESN'T TAKE TOO LONG, BUT THIS IS ONE OF MANY OPPORTUNITIES WE HAVE TO DO THIS, BUT THIS COULD BE OUR LAST, BARRING OUR VOTE TOMORROW, BECAUSE THE LAST TIME TO TALK ABOUT THIS WILL BE 2027.

IN TERMS OF THE AGREEMENT AND EXPIRATION OF THE VSA AND TPID.

SO LET ME FIRST TALK ABOUT WHY THIS IS COMING TO THE COUNCIL.

BECAUSE I THINK THERE'S BEEN SOME CONFUSION FOR FOLKS WHO HAVE ASKED ME ABOUT IT AND SAID THEY'VE TALKED TO ME ABOUT THE PROPOSAL I HAD TO TRY TO USE SOME OF THE FUNDS TO SUPPORT HOMELESSNESS IN THE CITY.

THEY SAID WHY ARE YOU TRYING TO INCREASE THE COST TO STAY IN OUR CITY? WHY ARE YOU TRYING TO INCREASE TAXES ON TOURISTS? I SAID, LOOK, THIS IS NOT A CITY COUNCIL-LED INITIATIVE.

THIS IS NOT A MAYOR-LED INITIATIVE.

THIS DIDN'T COME FROM THE CITY.

WHO PUT THIS PETITION BEFORE US THAT WE'RE GOING TO SUPPORT?

>> VSA AND THE SAN ANTONIO HOTEL AND LODGING ASSOCIATION BROUGHT THAT PETITION FORWARD AS PART OF THE DISCUSSION THAT WE STARTED IN 2016 AS WE TRANSITIONED THEM TO A PUBLIC-PRIVATE ENTITY WE TALKED ABOUT WHAT OTHER SOURCES OF FUNDING COULD BE BROUGHT TO THE TABLE TO HELP MARKET SAN ANTONIO, PROMOTE SAN ANTONIO.

TPID WAS IDENTIFIED EARLY ON.

THEY HAVE BEEN HAVING THOSE CONVERSATIONS WITH STAKEHOLDERS.

AND THEN I BELIEVE IT WAS AROUND THE SPRINGTIME FRAME WHEN THEY APPROACHED US AND SAID BASED ON OUR DUE DILIGENCE, WE WOULD LIKE

[01:10:01]

TO MOVE FORWARD WITH THE CREATION OF THE TPID.

>> SALDANA: I'LL TAKE SOME CRITICISM FOR ANYTHING AND EVERYTHING THAT COMES AT ME, BUT I AT LEAST WANT IT TO BE TRUE.

IT IS NOT ANYBODY ON THE COUNCIL WHO WANTS TO INCREASE THE COST OF STAYING IN A HOTEL IN SAN ANTONIO.

>> THIS PETITION WAS BROUGHT FORWARD BY VSA AND THE SAN ANTONIO HOTEL AND LODGING ASSOCIATION.

>> SALDANA: BECAUSE WHAT IT LOOKS LIKE TO MANY FOLKS IS A TAX ON TOURISTS, AND THAT'S PROBABLY NOT A STRETCH OF A DEFINITION.

YOU CAN OFFER FEEDBACK, BUT YOU'RE CREATING AN ASSESSMENT AND YOU'RE CREATING A DISTRICT FOR THAT ASSESSMENT.

IT LOOKS LIKE A TAX, SOUNDS LIKE A TAX, AND I'M GOING TO CALL IT A TAX, IF THAT'S OKAY.

BUT LET'S THINK ABOUT THIS SPECIFICALLY.

NOW WE'RE TALKING ABOUT HOW TO SPEND IT.

AND THAT'S LAID OUT PRETTY CLEARLY IN THE MASTER AGREEMENT, BEN.

YOU HAVE BEEN PART OF THAT PROCESS.

YOU AND YOUR STAFF HAVE AT LEAST HAD SOME INPUT ON YOUR SIDE.

>> THEY BROUGHT US A MASTER CONTRACT WITH A PETITION THAT OUTLINED HOW THEY WANTED TO UTILIZE THE DOLLARS.

AND AS WE'VE TALKED ABOUT TODAY, YOU KNOW, THE TPID DOLLARS ARE REALLY FOCUSED ON A COUPLE OF DIFFERENT AREAS.

AND IT FOCUSES ON MARKETING, SALES, INDUSTRY PARTNERSHIP AND RESEARCH AND ADMIN.

SO THOSE ARE THE AREAS THEY FELT LIKE THEY WANTED TO UTILIZE THE DOLLARS IN TO, AGAIN, PROMOTE SAN ANTONIO, DO MORE MARKETING, MORE OUTREACH, PROMOTE US AS A DESTINATION.

>> SALDANA: OKAY.

SO AFTER THIS WAS CONSULTED BY IN YOUR OFFICE, DID IT CHANGE AT ALL? DID IT CHANGE IN COMMITTEE? DID IT CHANGE BY THE COUNCIL DURING THE JUNE 21ST PERIOD? ANY SUGGESTION SINCE THEN?

>> THERE WERE NEGOTIATIONS, NOT ON THE USE OF THE FUNDS UNDER THE SERVICE PLAN.

I WILL TELL YOU WE HAD A LOT OF NEGOTIATION DISCUSSION BACK AND FORTH ON LANGUAGE THAT WE HAD TO MAKE SURE THAT AT THE END OF THE DAY THE TPID AND THE MANAGEMENT AGREEMENT THAT WE HAVE WITH VSA, FROM MY PERSPECTIVE, HAVE TO COMPLY WITH THAT RESOLUTION THAT WAS INCLUDED AS PART OF THE BOND DOCUMENTS WHEN WE DID THE CONVENTION CENTER EXPANSION.

SO THERE'S A FLOW OF FUNDS IN THERE.

IT TALKS ABOUT AND GIVES US A LITTLE BIT OF FLEXIBILITY IN TERMS OF HOW WE FUND VSA, THE CONVENTION CENTER, ARTS, HISTORY, AND PRESERVATION IN THE EVENT OF ECONOMIC DOWNTURNS, RESESSIONS.

WE SAW ANOMALIES IN HOTEL TAX.

WE HAVE TO HAVE A LITTLE BIT OF AN ABILITY TO ADJUST.

BECAUSE WE HAVE TO MEET DEBT SERVICE AT THE END OF THE DAY.

AND WE'VE GOT A HALF A BILLION DOLLARS IN BONDS.

THE DEBT PAYMENT INCREASES OVER TIME.

IT'S AT ABOUT $23 MILLION THIS YEAR.

IT GETS UP TO ABOUT $62 MILLION BY THE TIME WE GET TO YEAR 30.

IT FOLLOWS THE HOT TAX GROWTH.

WE HAD TO MAKE SURE THAT THE LANGUAGE THEY WERE TALKING ABOUT SUPPLEMENTING, NOT SUPPLANTING, WE HAD TO MAKE SURE WE STAYED CONSISTENT WITH THAT BOND DOCUMENT, AND I BELIEVE WE DID THAT.

>> SALDANA: THANK YOU, BEN.

LET ME SORT OF MAKE A STATEMENT -- NOT DIRECTED AT YOU, BEN, BUT IT'S A QUALITY STATEMENT ABOUT THE FACT THAT I THINK EVERYONE ON THE COUNCIL SUPPORTS TOURISM AND THE INDUSTRY.

AND I THINK WHAT I DON'T WANT TO DO IS KILL THE IDEA OF WHAT I THINK IS THE PRIMARY GOAL HERE WITH THE TPID.

THE SPIRIT OF THE TPID IS WE NEED TO BE COMPETITIVE WITH OUR CITY.

SO MAYBE I'LL ASK CASSANDRA.

I WOULD LIKE TO TRY TO TALK ABOUT WHAT IT WOULD TAKE FOR THE CITY OF SAN ANTONIO TO BE COMPETITIVE.

AND PART OF THAT IS INCREASING YOUR BUDGET FOR SALES AND MARKETING.

AND IF WE PASS THE TPID, IT WILL GET $10 MILLION ANNUALLY, JUST TO START.

BECAUSE I THINK THAT WILL GROW IN INCREMENTS.

IF YOU'RE DOING YOUR JOB, THAT $10 MILLION COULD MOVE TO $12 MILLION.

AND I THINK YOUR ESTIMATES THAT I'VE SEEN, MOVE IT UP TO $14 MILLION A YEAR.

SO CURRENTLY VSA HAS AN ALLOCATION.

MAKE SURE I HAVE THIS NUMBER RIGHT.

IS IT 24, $23 MILLION THAT GOES TO VSA?

>> WELL, IT'S FROM THE HOTEL OCCUPANCY TAX, WHAT'S APPROPRIATED --

>> SALDANA: THE 35% FROM THE CITY.

>> IS RIGHT AROUND 24.

YEAH, $24 MILLION.

BUT, AS I MENTIONED --

>> SALDANA: WE WANT TO BE COMPETITIVE AND WE WANT TO MAKE SURE IT DOESN'T STAGNATE.

>> YES, SIR.

SO RIGHT NOW, FROM THE HOTEL OCCUPANCY TAX, WE'RE ALLOCATED THE $24 MILLION.

AS MENTIONED EARLIER, WE LAUNCHED A MEMBERSHIP MODEL AS WELL AS WE HAVE VERY AGGRESSIVELY LOOKED AT OTHER WAYS TO GROW OUR BUSINESS.

AND SO WE ALSO RECEIVE PRIVATE DOLLARS FOR MARKETING CO-OPS.

SO WE MAY BE PARTNERING WITH SOME OF OUR KEY ATTRACTIONS, MUSEUMS TO GET OUT IN CERTAIN MARKETS.

AND THEY WERE PARTNERING WITH US.

SO THEY'LL PUT FUNDS AND WE'LL PUT FUNDS TOGETHER IN ORDER TO GROW THAT PARTICULAR MEDIA BY, MARKETING BY, WHATEVER THAT STRATEGY WOULD BE.

THE OTHER THING IS WE'RE ALSO LOOKING AT VARIOUS CORPORATE PARTNERS.

SO ONE OF THE THINGS I ANNOUNCED THIS LAST YEAR IS WE WERE SUCCESSFUL WITH JAMES AVERY AND WORKING WITH THEM ON A MARKETING AGREEMENT FOR THEM TO CREATE A

[01:15:03]

TRICENTENNIAL COLLECTION.

BUT THEN IN RETURN, WE RECEIVED BENEFITS IN ALL OF THEIR STORES, ALL OF DILLARD'S, ET CETERA.

>> SALDANA: DID THAT LEAD TO CASH TO VSA TO INCREASE THE $24 MILLION?

>> IT GAVE US AN OPPORTUNITY TO BUY.

IT WAS IN-KIND, SO WE DID NOT HAVE TO PAY FOR EXPOSURE IN THOSE STORES WHERE THEY ARE.

BUT IT WAS AN IN-KIND AMOUNT.

SO THAT'S THE OTHER THING.

>> SALDANA: IN THEORY IT HAS ALMOST INCREASED SOME OF THE MARKETING OPPORTUNITY.

>> NO QUESTION.

BUT WHEN I'M TALKING ABOUT THE MARKETING CO-OPS WITH PARTNERS, THAT CERTAINLY IS DOLLAR FOR DOLLAR.

THEN WHEN YOU LOOK AT MEMBERSHIP, THAT IS PRIVATE DOLLARS.

SO WHEN YOU SAY WHAT DOES IT TAKE TO BECOME COMPETITIVE, JUST TO KIND OF BACK UP, WHEN WE WERE GOING THROUGH THE CONVERSATION ABOUT THE TRANSITION, THERE WAS A PRIVATE-PUBLIC TASK FORCE THAT DID A LOT OF RESEARCH AND CAME BACK TO THE THEN-COUNCIL WITH THE RECOMMENDATION.

AT THAT TIME WE WERE THE ONLY CITY IN THE TOP 50 CITIES ACROSS THE U.S. THAT WAS STILL A GOVERNMENT ENTITY.

BUT ALSO REALLY COMPARING AND LOOKING AT, YOU KNOW, IF WE WERE REALLY STRIVING FOR A BUDGET AT THAT TIME, YOU KNOW, WHAT WOULD THAT BE.

AND WE FELT LIKE $30 MILLION TO $35 MILLION WOULD HELP US BE MORE COMPETITIVE.

I WILL TELL YOU THERE'S THIRD PARTIES OUT IN OUR OWN COMMUNITY THAT WOULD TELL YOU THAT WE NEED $200 MILLION TO BE ABLE TO BE EXTREMELY COMPETITIVE.

BUT WHEN WE LOOK AT SOME OF OUR COMPS WITHIN THE STATE, DALLAS OR HOUSTON.

AND I SAY THAT BECAUSE WE HAVE NATIONAL COMPETITION.

SAN DIEGO WE COMPETE A LOT WITH, PHOENIX, CHICAGO, INDIANAPOLIS, NEW ORLEANS IS A BIG COMPETITOR OF OURS.

BUT WHEN WE LOOK AT THE STATE, WHEN A MAJOR EVENT, WHETHER IT'S THE FINAL FOUR OR A NATIONAL ASSOCIATION OF XYZ IS LOOKING AT THE STATE AND WE GET AN RFP, IF ANOTHER TEXAS CITY WINS THAT BID, IT WILL BE A TWICE THE CYCLE BEFORE WE'LL GET AN OPPORTUNITY TO BID ON THAT CONFERENCE AGAIN.

SO WE WANT TO MAKE SURE THAT WE GET THAT CONFERENCE THE FIRST TIME AND IT'S ANOTHER TEXAS CITY THAT WOULD HAVE A FAR FUTURE OPPORTUNITY WITH THEM.

>> SALDANA: SO LET ME ASK A SIMPLE QUESTION.

IS THE NAME OF THE GAME JUST MONEY? IF YOU HAVE MORE MONEY THAN YOUR COMPETITOR, YOU WIN OUT ON THE TOURIST DESTINATION?

>> I THINK HONESTLY WHEN YOU LOOK AT -- I MENTIONED INFLATION WHEN IT COMES TO BUYING MARKETING.

YOU KNOW, WE HAVE BEEN SUCCESSFUL.

WE'VE HAD TO FIND WAYS TO UTILIZE THE DOLLARS THAT WERE ALLOCATED, THAT WERE IN OUR BUDGET.

AND WE HAVE BEEN SUCCESSFUL IN A LOT OF WAYS.

BUT, YOU KNOW, ONE OF THE THINGS THAT WE SHARED WITH YOU BUT WE HAVE NOTICED THAT WE ARE STARTING TO LOSE MARKET SHARE.

AND SO IN A MARKETING ORGANIZATION, A LOT OF TIMES IT'S ABOUT THE STRENGTH OF THE VOICE.

AND I WOULD ARGUE THAT WE ALSO -- WE HAVE TO BALANCE, COUNCILMAN.

YOU DON'T WANT TO LOSE SOME OF THOSE KEY TARGETS SUCH AS DALLAS AND HOUSTON THAT WE KNOW ARE OUR NUMBER ONE AND NUMBER TWO MARKETS FROM A LEISURE STANDPOINT.

BUT WE HAVEN'T BEEN ABLE TO TAKE SOME OF THE CALCULATOR RISKS BASED ON SOME OF THE RESEARCH THAT WE HAVE FOR NEWER MARKETS.

BECAUSE WE DON'T WANT TO LOSE OUR BASE, BUT WE HAVEN'T HAD THE AFFORDABILITY TO TRY SOME OF THE OTHER NEW MARKETS.

YOU KNOW, WE'RE LOOKING AT NEW WAYS.

WE PARTNER WITH RUSS AND THE AVIATION DEPARTMENT WHEN WE HAVE A NEW DIRECT FLIGHT.

WE TOOK A WHOLE GROUP OF PARTNERS AND VISIT SAN ANTONIO AND EMBARKED ON TORONTO.

SO WHEN WE HAD THAT DIRECT FLIGHT, NONSTOP FLIGHT, THAT WE COULD, YOU KNOW, GO INTO THE CITY FROM A MEDIA PR MARKETING, ET CETERA TO MAKE A BIG BOOST TO PROMOTE THAT.

>> SALDANA: SO I THINK THAT THE ORIGINAL QUESTION WAS THE DEFINITION OF BEING COMPETITIVE.

AND WE THINK THERE'S A NUMBER OUT THERE THAT WOULD MAKE US FEEL COMFORTABLE TO BE COMPETITIVE WITH DALLAS AND HOUSTON.

LET'S JUST USE THEM AS A TEXAS COMPETITOR CITY.

DALLAS IS CLOSER TO 36 OR 37.

HOUSTON IS AT 30 MILLION, I BELIEVE.

>> IT'S GROWING.

IT'S GETTING CLOSER TO 40 MILLION.

I WILL TELL YOU WHEN WE TALKED ABOUT A NUMBER TWO YEARS AGO, IT'S GROWING.

THEIR BUDGET IS GROWING, EVERYBODY'S BUDGET.

THAT'S WHERE IT KIND OF GAVE US PAUSE THAT OUR BUDGET HAD REMAINED RELATIVELY FLAT.

>> SALDANA: CORRECT.

SO I JUST WANT TO BE WITHIN THE BALLPARK WHEN I SAY WE'RE COMPETITIVE AS ROUGHLY $34 MILLION, $35 MILLION IN TODAY'S DOLLARS.

>> YES, SIR.

>> SALDANA: OUR GOAL IS NOT TO BE FRONT OF THE MARKET IN TERMS OF THE MOST AMOUNT OF MONEY IN TERMS OF VSA VEHICLE.

OUR GOAL IS TO BE COMPETITIVE.

>> WELL I GUESS AT THE SAME TIME, WHEN YOU SAY THAT, WE KNOW

[01:20:02]

WE'RE A REVENUE-GENERATING INDUSTRY AND WE DID A STUDY STATEWIDE AND LOCALLY.

STATEWIDE SPENT ON TOURISM PROMOTION, THERE'S A $7 RETURN.

LOCALLY FOR EVERY DOLLAR WE SPEND IN MARKETING WE GET A $5 RETURN.

I SAY THAT BECAUSE IT'S IMPORTANT.

WE'RE A REVENUE AUDIO].

ARTS AND CULTURE, THEY GET MORE FUNDING.

HISTORY PRESERVATION GETS MORE FUNDING.

I WOULD ARGUE THERE'S INCREMENTAL HEALTHY GROWTH IN THE SALES TAX.

SO, YOU KNOW, WE ARE THE SALES AND MARKETING ARM.

AND SO WE'RE TRYING TO DRIVE REVENUE FOR THIS COMMUNITY.

SO WHEN YOU SAY THAT, SURE, IF WE COULD GROW OUR BUDGET, BE THE HEALTHIEST BUDGET IN THE STATE, I THINK WE WOULD SEE EQUAL RESULTS.

BECAUSE WE ARE THAT REVENUE GENERATOR.

>> SALDANA: LET ME JUST SORT OF SOUNDBOARD WITH YOU, BECAUSE I THINK IT'S IMPORTANT TO MENTION.

MAYBE I'M NAIVE BUT I THINK THERE ARE ELEMENTS JUST AS IMPORTANT AS OUR MARKETING BUDGET.

IF WE GET VSA TO 33, $34 MILLION A YEAR, WHAT, BESIDES OUR ABILITY TO ADD BUYS IN DIFFERENT COMMUNITIES [INDISCERNIBLE] TO THE TOP WOULD BE IMPORTANT FOR THE CITY OF SAN ANTONIO? WHEN WE THINK ABOUT THE FACT THAT WE HAVE THE TOP TOURIST DESTINATIONS IN THE STATE OF TEXAS, THE ALAMO AND THE RIVER WALK.

I THINK THAT WOULD BE PRETTY IMPORTANT FOR US AS WELL.

WHEN I CONSIDER THAT WE'VE GOT ONE OF THE LARGEST AND NEWEST CONVENTION CENTERS BUILT AT $300 MILLION, THAT WE'RE ALL IN.

SO THIS IS A CITY, THIS IS A COMMUNITY AND A CITY COUNCIL THAT HAS MADE COMMITMENTS TO IMPORTANT THINGS THAT THE TOURISM INDUSTRY HAS BENEFITED FROM, THAT WE ALL BENEFIT FROM.

I GUESS AS I'M PULLING BACK AND I'M THINKING, OKAY, THE HOTELIERS HAVE COME TOGETHER AND DECIDED THAT IT WOULD BE TO OUR ADVANTAGE TO INCREASE THE AMOUNT OF MONEY THAT GOES INTO SALES AND MARKETING.

$100 MILLION, POTENTIALLY, OVER EIGHT YEARS.

I THINK THAT'S A FAIR ESTIMATE.

AM I OFF BASE BY SAYING $100 MILLION OVER EIGHT YEARS?

>> WELL, I THINK IF IT'S $10 MILLION ESTIMATED TODAY AND THERE'S OBVIOUSLY SOME GROWTH, I THINK YOU'RE IN THE BALLPARK, YES, SIR.

>> SALDANA: SO FOR AN INDUSTRY THAT IS GOING INTO A CONTRACT FOR EIGHT YEARS, BRINGING IN THAT MUCH MORE.

IF I WERE TO GO TO A WEBSITE AND LOOK UP A HOTEL'S REVIEWS, I IMAGINE THAT SOME OF THE BIGGEST SELLING PIECES I'LL SEE ON TRIP ADVISOR OR ORBITS IS HOW FOLKS DISCUSS FRIENDLY STAFF, GREAT FRONT OFFICE, THE FOLKS CLEANING THEIR BEDS, THE WAITERS, THE SERVERS.

AND SO MY QUESTION IS IF THE INDUSTRY IS GETTING POTENTIALLY $100 MILLION OVER EIGHT YEARS, HOW DO THE EMPLOYEES BENEFIT? DO THEIR SALARIES GO UP? DO THEIR BENEFITS?

>> BUT REAL QUICK BEFORE WE ANSWER THAT DIRECT QUESTION, THE ONE THING I DID WANT TO BRING UP IS BECAUSE OF VISITATION TO THE CITY AND BECAUSE OF THE INVESTMENT INTO HOTEL TAX, THAT IS WHAT HELPED GET THE TOBIN CENTER.

THAT IS WHAT IS FUNDING THE EXPANSION OF THE CONVENTION CENTER AS WELL AS ALL THE IMPROVEMENTS TO THE RIVER WALK.

SO WHEN I SAY IF WE'RE SUCCESSFUL THAT IT BENEFITS NOT ONLY THE VISITORS THAT COME HERE, WE INVEST -- AND IT'S BECAUSE OF THOSE DOLLARS THAT WE AS CITIZENS OF THIS COMMUNITY ALSO BENEFIT WITH A FANTASTIC QUALITY OF LIFE.

SO WHEN WE TALK ABOUT THE EXPANSION, IT IS FUNDED BY HOTEL TAX.

SO, AGAIN, IT'S INDUSTRY.

AND BECAUSE OF THE REVENUE GENERATION OF AN INDUSTRY, WE HAVE SEEN AMENITIES GROW.

I MEAN, AND I JUST DON'T WANT US TO LOSE SIGHT THAT WHY I GET UP EVERY DAY IS BECAUSE WE IMPACT THIS COMMUNITY.

IT'S NOT BECAUSE I LOVE SALES, WHICH I DO, AND I LOVE THIS DESTINATION, BUT IT'S ALSO BECAUSE WE IMPACT THE CITIZENS THAT LIVE IN THIS COMMUNITY BECAUSE OF WHAT WE DO.

>> SALDANA: AND OUR SUCCESS IS INTERLINKED, AND I THINK THAT'S THE POINT YOU'RE MAKING.

>> YES, SIR.

>> I'M SCOTT, PRESIDENT AND C.E.O. OF THE TEXAS HOTEL AND LODGING ASSOCIATION.

I'M ALSO GENERAL COUNSEL FOR ALL THE TOURISM DISTRICTS THAT EXIST IN TEXAS.

AND THEN AUTHOR OF THE LEGISLATION.

WHAT I WOULD INDICATE OUR EXPERIENCE WITH THE TOURISM DISTRICTS -- AND IT'S KIND OF ONE OPPOSITE TO THE OTHER.

WHEN THE TOURISM INDUSTRY HAS LOWER OCCUPANCY AND LESS SUCCESS, WHAT WE SEE IS WE HAVE TO LET EMPLOYEES GO OR WE CAN'T AFFORD MAYBE AS ROBUST AN INSURANCE PROGRAM FOR OUR EMPLOYEES OR BENEFIT PROGRAMS OR PROFIT-SHARING PROGRAMS, OR WHATEVER PROGRAMS WE OFFER FROM ACROSS THE BOARD, WE HAVE TO CUT BACK WHEN THE INDUSTRY ISN'T DOING AS WELL.

AND WE SEE HOTEL DEVELOPMENTS GO DOWN.

AND ALL OF THAT AFFECTS OUR ABILITY TO BE AS GENEROUS AS AN

[01:25:01]

EMPLOYER AS WE WOULD LIKE TO SEE.

I WILL TELL YOU, AS WE HAVE DOWN THESE TOURISM DISTRICTS, LIKE IN DALLAS WE HAD A TOURISM DISTRICT THAT'S ADDING 15 TO $20 MILLION A YEAR ABOVE WHAT THE TRADITIONAL CVB BUDGET, WHICH IS ABOUT A THIRD OF ALL THE HOTEL TAX THAT COMES INTO DALLAS GOES TO THE VISIT DALLAS ENTITY.

THEN THEY ADD ANOTHER 15 TO $25 MILLION A YEAR FOR THE TOURISM DISTRICT.

THAT FUNDING HAS ALLOWED DALLAS TO DOUBLE THE NUMBER OF CITY WIDES.

THEY WENT FROM CONVERTING ABOUT 23% OF THE BIDS THAT THEY PUT OUT FOR CITYWIDE CONVENTIONS, YOU REALIZE THAT INTO ACTUAL CONVENTIONS, TO REALIZING 46% OF THE BIDS THEY WERE WINNING AS CITY WIDES.

THOSE ARE CONVENTIONS THAT COULD HAVE BEEN COMING TO SAN ANTONIO, COULD HAVE BEEN GOING TO HOUSTON, PHOENIX, OR OTHER AREAS.

AND THAT BRINGS A LOT OF PRODUCTIVE VALUE AND EMPLOYMENT OPPORTUNITY AND BENEFITS AND OTHER THINGS WE CAN DO FOR OUR EMPLOYEES THAT WE COULDN'T DO OTHERWISE WITHOUT THAT BUSINESS.

THAT'S WHY IT'S SO IMPORTANT.

ONE OF THE THINGS I LEARNED -- AND I THINK I SHARED WITH THE COUNCIL BACK SUMMER.

THAT SURPRISED ME BECAUSE I HAVE BEEN WITH THE HOTEL INDUSTRY OVER 19 YEARS NOW.

BEFORE THAT I WAS CHIEF OF MUNICIPAL AFFAIRS FOR THE ATTORNEY GENERAL AND LEAD ATTORNEY FOR TEXAS MUNICIPAL LEAGUE.

CVBS HAVE A POT OF MONEY FOR BIDDING ON CONVENTIONS AND INCENTIVES.

THERE ARE A LOT OF MEETINGS THAT DALLAS WOULD HAVE LIKED TO HAVE BID ON THAT THEY JUST RAN OUT OF INCENTIVE MONEY.

RAN OUT OF SALES MONEY.

AND SO THEY WENT TO PHOENIX OR LOS ANGELES OR SAN DIEGO OR SAN ANTONIO OR OTHER LOCATIONS, BECAUSE THEY HAD MONEY AVAILABLE TO GO AHEAD AND HOST THAT MEETING AND OFFER UP A ROBUST SET OF INCENTIVES THAT REALLY BRING, NOT ONLY THE BUSINESS OF THE HOTELS, BUT THE PRIMARY WERE THE GAS STATIONS AND ALL THE OTHER BUSINESSES.

NOT ONLY THE SALES TAX, BUT WHAT'S A LOST BENEFIT PEOPLE DON'T TALK ABOUT AS MUCH, ALL OF THE LODGING INDUSTRY, WE'RE VALID ON THE INCOME APPROACH.

AS WE INCREASE OUR INCOME AT A LA QUINTA OR AT A WYNDHAM PROPERTY, OUR PROPERTY TAXES INCREASE.

BECAUSE YOU MULTIPLY OUR TOTAL INCOME IN A YEAR BY A FACTOR, THAT'S WHAT THE APPRAISAL DISTRICT DOES, AND THAT'S WHAT YIELDS OUR PROPERTY TAX CONTRIBUTION.

SO WHEN YOU TALK ABOUT WHAT'S THE IMPACT ON EMPLOYEES, IT'S GOING TO BE ON EMPLOYEES, NOT ONLY IN THE HOTEL INDUSTRY, BUT EVERY COMMUNITY CITIZEN.

BECAUSE OUR PROPERTY TAX GROWTH IS INCREASED.

OUR SALES TAX, OUR ALCOHOL TAX, AND ALL OF THAT, WHICH IS UNDEDICATED REVENUE THAT YOU CAN USE FOR ANY PUBLIC PROGRAM.

AS WE'RE ABLE TO GENERATE THAT ECONOMIC ACTIVITY, WE NOT ONLY IMPACT OUR OWN SECTOR, WE IMPACT DRY CLEANERS AND RESTAURANTS AND BARS.

>> SALDANA: CAN I JUMP IN? I'M GLAD TO HAVE YOU BECAUSE YOU'RE SEEN AS AN EXPERT ON TPIDS.

I WANT TO ASK A QUESTION.

YOU WERE INTERVIEWED ON TODAY'S HOTELIER, WHICH YOU SAID SOME REALLY GOOD THINGS, I THINK, ABOUT WHY TPIDS EXIST.

YOU TOLD THE TRUTH.

TPIDS EXIST SO WE CAN FIND THE REVENUE SOURCE THAT'S CONTROLLEDLY HOTELIERS, NOT THE CITY COUNCIL.

WHAT HAPPENS IS SOMETIMES THE CITY COUNCIL WANTS TO DO THINGS THAT ARE NOT ASSOCIATED WITH THE TOURISM INDUSTRY.

I GET THAT.

THAT MAKES A LOT OF SENSE.

I THINK THAT COMES FROM A HISTORY WHERE MAYBE THAT'S HAPPENING SOMEWHERE.

HOT TAX OR SOMETHING THAT SHOULD HAVE GONE TO TOURISTS AND WENT TO SOME OTHER ISSUE.

SO MAYBE YOU HAVE SOME EGREGIOUS EXAMPLE.

MAYBE THEY USED A TPID OR HOTEL TAX AND THEY'RE USING IT ON SOMETHING COMPLETELY UNRELATED TO THE INDUSTRY.

>> THERE ARE A LOT OF EXAMPLES, UNFORTUNATELY, COUNCIL MEMBER.

WHEN I CAME ON BOARD WE HAD ABOUT A MILLION DOLLAR FUND THAT THEY CALLED THEIR LEGAL DEFENSE FUND.

THAT WAS IN CASE CITIES WERE UTILIZING THE HOTEL OCCUPANCY TAX FOR PURPOSES THAT WEREN'T AUTHORIZED UNDER STATE LAW.

I HAVE BEEN ON BOARD FOR 19 YEARS.

WE HAVE NEVER USED A SINGLE DOLLAR FROM THAT.

IT ISN'T THAT WE HAVEN'T HAD PROBLEMS. IT'S THAT WE TAKE OVER 900 LEGAL INQUIRIES A MONTH ON LEGAL ISSUES INVOLVING HOTEL TAX AND HOTEL INDUSTRY.

AND WHAT WE DO IS I HAVE A STAFF OF FOUR ATTORNEYS.

WE JUST CALL THE CITY ATTORNEY.

WE CALL THE CITY MANAGER.

I KNOW MOST OF THE MAYORS ACROSS THE STATE OF TEXAS.

AND WE JUST SAY, HEY, YOU'RE UTILIZING THIS HOTEL OCCUPANCY TAX FOR YOUR PUBLIC SWIMMING POOL.

BUT RECREATIONAL FACILITIES AREN'T AN AUTHORIZED CATEGORY UNLESS THEY'RE SPECIFICALLY DEDICATED FOR HOSTING REGIONAL, STATE, OR NATIONAL TOURNAMENTS.

AND THEN THEY GO AHEAD AND THEY WORK WITH US.

BECAUSE WE HAVE THAT BACKGROUND AND THAT PARTNERSHIP WITH THE TEXAS MUNICIPAL LEAGUE, BECAUSE WE'RE CONSIDERED EXPERTS IN THE USE OF HOTEL TAX, WE'VE BEEN ABLE TO WORK WITH CITIES THROUGHOUT THE STATE.

WE HAVE ALSO, THROUGH THE LAST 19 YEARS, WE HAVE UPDATED THE LEGISLATION ON USE OF HOTEL TAX TO REQUIRE -- THERE'S A PROVISION THAT SAYS THE LOCAL HOTEL TAX CAN'T BE USED FOR GENERAL INFRASTRUCTURE OF A

[01:30:01]

CITY.

THAT WAS BECAUSE THE STATE LEGISLATIVE COMMITTEE CAME FORWARD AND SAID THERE WERE A LOT OF ABUSES WHERE THEY WERE USING HOTEL TAX FOR ALL KINDS OF PURPOSES, FOR GENERAL INFRASTRUCTURE OF THE CITY BUT HAD NOTHING TO DO WITH DIRECTLY PROMOTING TOURISM AND THE HOTEL INDUSTRY.

WE'VE DONE AUDITS OF VARIOUS COMMUNITIES.

BUT WE TRY TO LOOK FORWARD AND WORK WITH THEM AND SAY, HEY, YOU MAY NOT HAVE REALIZED THIS WAS THE STATE LAW.

THERE'S BASICALLY NINE CATEGORIES FOR USE OF THE TAX.

BUT EVERY EXPENDITURE NEEDS TO FIT IN ONE OF THOSE NINE CATEGORIES AND, SECOND, IT NEEDS TO DIRECTLY PROMOTE TOURISM AND THE HOTEL AND CONVENTION INDUSTRY.

AND THERE ARE ATTORNEY GENERAL OPINIONS, AS YOU ARE PROBABLY AWARE, SAY THAT IT'S NOT ENOUGH THAT IT PROMOTES TOURISM AND NEEDS TO FIT INTO ONE OF THE NINE CATEGORIES, IT ALSO HAS TO DIRECTLY PROMOTE TOURISM.

>> SALDANA: FOR HOT TAX?

>> SPECIFICALLY FOR THE CHAPTER 351 MUNICIPAL HOTEL OCCUPANCY TAX, CORRECT.

>> SALDANA: THE TPID IS A LITTLE BIT DIFFERENT.

THERE'S A LITTLE BIT MORE FLEXIBILITY.

>> THE TPID IS A SPECIAL DISTRICT.

AND THERE'S TWO TYPES OF DISTRICTS THAT WE TYPICALLY SEE UNDER PUBLIC IMPROVEMENT DISTRICT LAW.

AND THIS IS GOING BACK TO MY MANTRA WHEN I WAS AN ATTORNEY WITH THE TEXAS MUNICIPAL LEAGUE.

TYPICALLY YOU'LL HAVE NEIGHBORHOOD DISTRICTS.

AND THOSE NEIGHBORHOOD DISTRICTS WILL PROVIDE SERVICES WITHIN A SET GEOGRAPHIC AREA LIKE PUBLIC SAFETY, LIGHTING, SIDEWALKS, SECURITY SERVICES IN A NEIGHBORHOOD IN ORDER TO ENHANCE A NEIGHBORHOOD.

THEN YOU HAVE DOWNTOWN PUBLIC IMPROVEMENT DISTRICTS, WHICH ARE TYPICALLY BUSINESS IMPROVEMENT DISTRICTS, AS YOU KNOW.

BECAUSE YOU HAVE CENTRO HERE, TO DO PUBLIC SAFETY WITHIN DOWNTOWN, SERVICES, MARKETING.

>> SALDANA: CAN I FOLLOW UP WITH ANOTHER QUESTION? I DON'T WANT TO TAKE UP TOO MUCH TIME.

SO I GUESS THE SIMPLE QUESTION IS THIS CONTRACT, AS YOU READ IT, I'M IMAGINING THE MASTER AGREEMENT --

>> THE SERVICE PLAN, YES, SIR.

>> SALDANA: IS IT WRITTEN IN A WAY THAT IT'S CONTROLLED EXCLUSIVELY BY THE HOTEL INDUSTRY? ON PURPOSE, I WOULD IMAGINE.

IF I'M SIGNING OFF SAYING I WANT TO SUPPORT THIS FEE, I DON'T WANT THE SILLY CITY COUNCIL GETTING IN THE WAY DECIDING HOW TO SPEND THIS, IT'S WRITTEN IN A WAY THAT THE HOTEL INDUSTRY IS DECIDING.

>> THE GENESIS OF THE SERVICE PLAN IS BASICALLY, TO ME IT'S A PERFECT CHECK AND BALANCE.

YOU DON'T GET A TOURISM PUBLIC IMPROVEMENT DISTRICT UNLESS YOU GET A PETITION.

THE CITY COUNCIL COULDN'T IN AND OF ITSELF JUST CREATE A PUBLIC IMPROVEMENT DISTRICT AND SUBJECT ALL THE HOTELS.

THE HOTELS WOULD LIKE TO COME FORWARD AND SAY WE WOULD LIKE TO HAVE A SPECIAL ASSESSMENT.

HERE'S WHAT WE PROPOSE IS OUR SERVICE PLAN.

THAT'S WHAT WE DID WHEN WE CAME BACK TO YOU LAST SUMMER.

AND WELL BEFORE THAT IN MEETINGS WITH INDIVIDUAL MEETINS WITH COUNCIL MEMBERS AND OTHER SORTS OF DISCUSSIONS.

THAT SERVICE PLAN WE DEVELOP IN ADVANCE TO SAY WHAT WOULD BE THE MOST IMPACTFUL WAY TO USE THIS MONEY THAT WILL BENEFIT AND HAVE A DIRECT BUSINESS IMPACT? LEGALLY, WHEN WE DO AN ASSESSMENT AGAINST THE OMNI OR LA QUINTA OR DRURY HOTEL, THEY HAVE TO BE ABLE TO SHOW EVERY DOLLAR THEY PAY EACH YEAR IS AN ASSESSMENT.

OR LEGALLY THEY CAN ASK EITHER TO BE REMOVED FROM THE DISTRICT OR THEIR ASSESSMENT REDUCED.

THERE HAS TO BE A VALUE.

THE SAME WAY IF I HAVE A RESIDENTIAL DISTRICT OR A DOWNTOWN DISTRICT.

THERE HAS TO BE VALUE.

SO THAT SERVICE PLAN BASICALLY IS DEVELOPED BY THE INDUSTRY.

WE BROUGHT IT TO THE CITY COUNCIL.

WE WORKED IT OUT WITH CITY STAFF AND SAID HERE'S WHERE WE WANT TO SPEND THE MONEY.

ONCE YOU GUYS APPROVE THAT, THAT DISTRICT IN THOSE CATEGORIES, IT'S LIKE A BOND PROPOSITION.

>> SALDANA: WE DON'T GET TO WEIGH IN ON WHAT YOU'RE SAYING? WE DON'T GET TO WEIGH IN AFTER THE SERVICE AGREEMENT IS VOTED ON.

>> ONCE THE SERVICE AGREEMENT IS VOTED ON AND APPROVED, WE DID THE SIGNATURES BY ALL OF THE PROPERTY OWNERS.

AT THAT POINT WE CAN'T CHANGE THE TERMS OF THAT SERVICE PLAN, THOSE BUDGET CATEGORIES, OR WE WOULD HAVE TO START ALL OVER WITH THE PETITIONS.

>> SALDANA: THAT'S CORRECT.

THAT'S WHY WHEN BEN USED THE TERM IT WOULD BE DIFFICULT TO CHANGE THE SERVICE AGREEMENT.

THE PROPER WORD IS PROBABLY NOT POSSIBLE.

YOU CANNOT CHANGE IT BECAUSE IT WOULD BE REJECTING THE ENTIRE TPID.

>> YES.

WE WOULD HAVE TO START ALL OVER AGAIN.

>> SALDANA: MY QUESTION IS -- MAYBE THIS ISN'T ABOUT OUR INDUSTRY OR OUR CITY, BUT WHY DO THE HOTELIERS MISTRUST CITY COUNCIL SO MUCH?

>> OH, GOODNESS.

IT'S NOT A MATTER OF MISTRUSTING.

THIS IS A BIG EXACTION TO ASK FOR HOTELS.

IF YOU THINK IT WAS EASY FOR US TO GO TO ALL THE OWNERSHIP GROUPS AND SAY WE HAVE SOME REALLY GOOD NEWS FOR YOU.

[LAUGHTER] WE HAVE A PROPOSAL THAT'S GOING TO INCREASE THE LEVY YOU'RE GOING TO HAVE ON ALL YOUR GROUP BUSINESS AND CONVENTION BUSINESS AND WE THINK IT'S A REALLY GOOD IDEA AND WE WANT YOU TO JUST SIGN RIGHT HERE.

WE'RE GOING TO CREATE THIS DISTRICT AND HOPEFULLY IT WILL LEAD TO GOOD THINGS.

WE HAD TO SHOW THEM THAT IT WAS A VERY TARGETED PURPOSE, THAT THEY COULD TRUST THAT WHEN WE SAID WE WERE GOING TO SPEND IT ON THIS MONEY -- BECAUSE WHAT THEY'RE USED TO, HONESTLY, YOU

[01:35:03]

GUYS ARE GOING TO BE FIGHTING A HUGE BATTLE THIS UPCOMING SESSION ON REVENUE CAPS.

AND THE LEGISLATURE ALWAYS SEEMS TO HAVE A LOT OF BULLS EYE TARGETS ON MUNICIPALITIES OR ABILITY TO GENERATE REVENUES.

THE COMMERCIAL SECTOR IS NOT UNAWARE OF THAT.

WHAT WE HAVE SEEN IS A LOT OF THE TRADITIONAL USES OF MARKETING AND CONVENTION CENTERS AND HEAVY TOURISM IMPACT PROGRAMS, THERE'S BEEN PRESSURES ON CITY MANAGERS AND CITY COUNCILS TO DIVERSITY THOSE FUNDS TO OTHER PURPOSES TO SAY WE USED TO SPEND PROPERTY TAX ON THIS.

LET'S TRY TO SPEND THE HOTEL TAX ON THIS INSTEAD.

WE JUST SAW $3 MILLION TRANSFERRED IN THE CITY OF AUSTIN FROM THE AUSTIN CONVENTION AND VISITORS BUREAU TO HISTORICAL PROGRAMS. THEY DID THAT TO GET UP TO THAT 15% CAP.

SAN ANTONIO IS ALREADY AT THE 15% CAP FOR HISTORICAL.

AND AT THE 15% CAP FOR THE ARTS.

SO WE SEE THAT PRESSURE AND WE'RE SENSITIVE TO THIS.

I WOULD NOT SAY IT'S DISTRUST, BUT THEY WANT TO HAVE A BUSINESS CERTAINTY THAT IF THEY'RE GOING TO TAKE THIS RISK WITH THEIR CLIENT BASE, THEY KNOW WHAT IT'S GOING TO BE SPENT FOR.

IF YOU LOOK IN DALLAS AND THEIR SUCCESS RATE, THEY SET OUT A 10 TO 1 ROI REQUIREMENT.

THEIR RETURN ON INVESTMENT HAS BEEN $16.

THEY HAVE HOTELIERS ON THIS BOARD THAT ARE SO SHREWD ABOUT HOW THEY MANAGE THESE INVESTMENTS AND MANAGE THE SUCCESS.

>> SALDANA: I HEAR YOUR POINT AND I HATE TO CUT YOU OFF.

I DON'T WANT TO GET FILIBUSTERED AND LOSE EVERYBODY'S ATTENTION ON THIS.

LET ME ASK A QUESTION OF WHAT IS POSSIBLE.

YOU CAN WEIGH IN, BUT I THINK EVEN ANDY MIGHT BE ABLE TO HELP ME WEIGH IN AS WELL ON THIS QUESTION.

I'M THINKING HYPOTHETICALLY, ANDY, IF WE WERE TO VOTE DOWN THE TPID TOMORROW.

IS THERE A SCENARIO -- OR EVEN IF WE WERE HAVING THIS CONVERSATION IN JUNE, WHICH I TAKE EVERYONE'S POINT.

A BETTER TIME TO HAVE THIS CONVERSATION.

WE STILL HAVE A VOTE SO I'M GOING TO HAVE THE CONVERSATION.

THEORETICALLY WE VOTED DOWN THE TPID AND THAT WAS SCRAPPED AND YOU STARTED ANEW, YOU COULD PUT TOGETHER A AGREEMENT THAT SAID WE WILL TAKE THE PREVIOUS TERMS IN THE TPID THAT PASSED BUT MAKE AN ADJUSTMENT WHERE NOT 100% OF THIS GOES TO THE HOTELIERS AND VSA AND SALES AND MARKETING.

BUT THE 20% GOES TO SOMETHING LIKE HOMELESSNESS.

IN THEORY, COULD YOU DO SOMETHING LIKE THAT?

>> IF I UNDERSTAND THE QUESTION, SO IF THE COUNCIL VOTES DOWN TH-

>> SALDANA: YEAH.

YOU WOULD BE CREATING A NEW SERVICE AGREEMENT.

>> COULD YOU CREATE A NEW TPID LATER ON NEXT YEAR.

IS THAT WHAT YOU'RE ASKING ME?

>> SALDANA: AS QUICKLY AS IT CAN BE DONE.

SURE.

JANUARY.

>> WELL, THEORETICALLY, YES, BUT YOU WOULD HAVE TO HAVE THE HOTEL INDUSTRY, ONCE AGAIN, START FROM SCRATCH AND MOVE FORWARD BUT UNDER THOSE NEW PARAMETERS.

>> SALDANA: THEY COULD VOTE IT DOWN AND SAY, LOOK, THE ROI FOR US IS NOT THERE.

THIS DOESN'T MAKE SENSE FOR THE INDUSTRY.

IF THERE'S OTHER INPUT, PLEASE.

I WANT TO GET AS SMART AS POSSIBLE ON THIS FOR TOMORROW.

>> I WANT TO BE VERY FRANK ABOUT IT.

THE REASON WE BROUGHT THIS PROPOSAL TO THE CITY COUNCIL WAS THAT WE HAD TO HAVE MAXIMUM CREDIBILITY WHEN WE WENT BEFORE THOSE OWNERSHIP GROUPS.

IT IS VERY HARD TO GET BEFORE THEM BEFORE THE REAL ESTATE INVESTMENT TRUST, BEFORE THE MANAGEMENT COMPANIES, BEFORE THE OWNERS.

AND WE COMMITTED TO THEM THAT YOU CAN TRUST THAT THIS IS THE AGREEMENT THAT WE'RE GOING FORWARD.

THIS IS WHAT IT WILL LOOK LIKE.

I DON'T KNOW THAT WE WOULD BE ABLE TO O BACK.

IN FACT, IT'S NOT THAT I DON'T KNOW.

I TALKED TO INDUSTRY LEADERS.

IT IS NOT LIKELY THAT THEY WOULD BE RECEPTIVE TO STARTING ALL OVER AND HAVING A NEW PETITION.

IN THEIR MINDS, THEY WOULD SAY HAVE ANOTHER.

AND HOW DO WE TRUST THAT THIS IS THE FINAL DEAL.

THAT'S WHY WE BROUGHT IT TO THE CITY COUNCIL.

AND THAT WORD TO THEM MATTERED A LOT AND THAT ABILITY --

>> SALDANA: TRUST.

>> YOU ASK WHY WOULD WE TRUST? WE HAD AN AGREEMENT SIX MONTHS AGO AND WE ARE COMING FORWARD, AFTER WE GOT 100 OWNERSHIP GROUPS TO SIGN ON, AND THERE'S A NEW PROPOSAL.

THAT DOESN'T YIELD GREAT TRUST.

AND I WOULD BE VERY CONCERNED -- I'LL LET LISA ADDRESS, BECAUSE YOU HAVE WORKED WITH SOME OF THE LOCAL LEADERS, BUT I WORKED WITH ALL THE OWNERSHIP GROUPS ACROSS THE STATE AND I DON'T THINK THAT WE WOULD BE SUCCESSFUL IN COMING BACK AND GETTING THE SIGNATURES THAT WE WOULD NEED TO DO IT AGAIN.

>> I'M SORRY.

EXCUSE ME.

IF I COULD JUST ADD, THE GENESIS OF THIS WAS BECAUSE WE SAW THAT THERE WAS, ONE, THERE WAS A COMMITMENT FROM OUR INDUSTRY TO THIS BODY THAT WE WERE GOING TO DO SOMETHING TO BOOST THIS REVENUE AND BOOST THEIR BUDGET.

SO THE GENESIS OF THIS AND THE REASON WHY THIS INDUSTRY IN THIS

[01:40:03]

COMMUNITY HAS MOVED THIS FORWARD IS BECAUSE WE MADE A COMMITMENT.

AND WE BROUGHT IT FORWARD.

WE GOT YOUR WORD AND WE TOOK IT TO THE HOTEL OWNERS.

WE HAD H TO DO A BANK-UP JOB TO CONVINCE THEM THAT SELF-ASSESSING A FEE AND ADDING TO THEIR CHALLENGE OF COMPETITION WAS GOING TO BE IN THEIR BEST INTEREST AND ALL OF OUR BEST INTEREST IN ORDER TO MOVE FORWARD AND TO BRING THIS BACK TO YOU TODAY TO CREATE THE TOURISM PUBLIC IMPROVEMENT DISTRICT.

I MEAN, EVEN GOING THROUGH THE BOARD APPLICATION PROCESS, NOT ALL THE PEOPLE WHO APPLIED TO BE ON THE LEADERSHIP TEAM HAD AN INITIAL FAVORABLE PERSPECTIVE OF THIS.

SIMILAR TO MAYOR NIRENBERG.

I'M NOT SURE, CAN YOU CONVINCE ME THAT THIS IS GOING TO BE IN OUR BEST INTEREST? WELL, WE TOLD THEM WE NEGOTIATED WITH THE CITY.

WE WERE GOING TO ENSURE THAT THE MONEY WAS NOT GOING TO BE SUPPLANTED.

WE MOVED FORWARD WITH THIS NEGOTIATION.

THE CITY KIND OF SURPRISINGLY WAS ABLE TO HELP US AND ENSURE THAT THAT MONEY WAS GOING TO ONLY GROW THE BUDGET.

AND THEN WE HAD TO GO SELL IT.

WE HAD TO SELL IT.

IT WAS A FULL-COURT PRESS ON GOING OUT THERE, HAVING A STRATEGY, GETTING OUR MEMBERS ENGAGED TO TALK TO THEIR OWNERS.

THIS WASN'T AN EASY TASK.

>> SALDANA: YEAH, TELL ME ABOUT THAT.

YOU SAID IT WAS DIFFICULT.

>> I DIDN'T SAY IT WAS DIFFICULT.

I SAID WE HAD TO WORK HARD TO MAKE IT HAPPEN.

>> SALDANA: DID YOU HAVE TO WORK HARD TO CONVINCE HOTELIERS TO MAKE $100 MILLION MORE?

>> SIR, IT'S NOT GOING INTO THEIR POCKETS.

>> SALDANA: I IMAGINE IT'S GOING INTO THE BUSINESS.

>> NO.

THIS REVENUE THAT'S BEEN GENERATED IS GOING TO VISIT SAN ANTONIO IN HOPES THAT THEY ARE GOING TO BE ABLE TO INCREASE DEMAND FOR OUR MARKETS.

SO THIS IS NOT GOING TO THE HOTELIERS.

WE'RE NOT RAISING $10 MILLION TO BENEFIT OUR LOCAL HOTELS.

WE ARE TAKING A BUSINESS RISK -- OUR OWNERS ARE TAKING A BUSINESS RISK BY MOVING THIS FORWARD TO SAY, HEY, VISIT SAN ANTONIO, WE ARE HOPING THAT YOU ARE GOING TO TAKE OUR $10 MILLION AND BOOST SALES AND BRING MORE PEOPLE TO SAN ANTONIO, WHICH WILL IN TURN BRING MORE PEOPLE TO SAN ANTONIO, BOOST SALES.

BOOST ALL THE OPPORTUNITIES THAT OUR COMMUNITY PROVIDES FOR ARTS, FOR PRESERVATION, THE SALES TAX BOOST, THE ADDITIONAL JOBS THAT WILL COME FROM IT.

THE PEOPLE WHO WILL, IN OUR INDUSTRY, NOT ONLY GET A JOB BUT HAVE AN OPPORTUNITY TO BE PROMOTED AND TRAVEL THE WORLD BECAUSE OF ALL THE OPPORTUNITIES THAT OUR INDUSTRY PROVIDES.

>> SALDANA: LET ME NOT MISCHARACTERIZE.

I'M NOT ASSUMING $100 MILLION IS GOING INTO HOTELIERS' POCKETS, BUT I DO THINK IT IS GOING INTO A BUDGET THAT THEY CAN CONTROL HOW IT'S SPENT.

AND IT GOES BACK TO WHO MAKES UP THE DECISION MAKERS ON VASE'S BOARD.

ARE THE MAJORITY HOTELIERS AND HOTEL OWNERS?

>> SO THE COMPOSITION OF THIS VISIT SAN ANTONIO BOARD, ACTUALLY THE LION'S SHARE IS REPRESENTED BY CITY TO CITY COUNCIL MEMBERS.

THE CITY MANAGER SERVES IN MANY OF THE DIRECTORS OF THE CITY.

BECAUSE WE WANTED TO MAKE SURE THAT THERE WAS THAT KEY PARTNERSHIP WITH THE CITY.

ON A 22-PERSON BOARD THERE'S THREE SPOTS FOR HOTELIERS.

THE REST ARE MADE UP OF ARTS AND CULTURE, ATTRACTIONS, RESTAURANTS, AT-LARGE APPOINTEES.

SO IT IS VERY DIVERSE.

IN FACT, THAT WAS VERY KEY AS WE WERE TRANSITIONING THAT IT WOULD BE A DIVERSE BOARD.

>> SALDANA: WELL, MAYBE I'M LEARNING SOMETHING NEW.

SO AFTER THIS -- IF WE'RE ASSUMING THIS PASSES ON THURSDAY, ISN'T IT THE TASK THAT THE SAN ANTONIO HOTEL LODGING ASSOCIATION IS TASKED WITH CREATING A BOARD, A SATPID BOARD?

>> THERE WAS ALREADY A CALL FOR APPLICATIONS TO SEE WHO WOULD BE INTERESTED AND SOME DISCUSSIONS WITH THOSE APPLICANTS.

BUT, YES, THERE WOULD BE A TPID.

BECAUSE BY STATE LAW IT SAYS THAT THAT BOARD OF A TPID CORPORATION MUST BE MADE UP OF THE STAKEHOLDERS THAT PAY INTO THE DISTRICT.

>> SALDANA: I SEE.

>> THEN AGAIN TO REMIND YOU THAT THE DIRECTION OF THE BOARD IS TO PROVIDE PRIORITIES AND DIRECTION FOR THE REVENUE TO HER BUDGET.

BASED ON THE SERVICE PLAN.

IT IS NOT THE DIRECTION AND THE PURPOSE OF THE BOARD TO SAY HOW THE MONEY WILL BE SPENT.

IT IS THE DIRECTION OF THE BOARD TO PROVIDE PRIORITIES ON WHAT WILL BE IMPORTANT FOR THE VISIT SAN ANTONIO OVERALL BUDGET.

>> SALDANA: OKAY.

I SUPPOSE I WAS LOOKING AT YOUR WEBSITE, LISA, THE HOTEL LODGING ASSOCIATION.

I READ THAT THE SATPID BOARD

[01:45:02]

COMPOSED SOLELY OF HOTELIERS WITHIN THE DISTRICT.

THAT'S PART OF THE SELLING PIECE.

>> PEOPLE PAYING INTO THE DISTRICT.

>> SALDANA: IT SAYS HOTELIERS.

THAT'S HOW I IMAGINE YOU CAN SELL IT TO SOMEBODY TO SAY I'LL VOTE FOR THIS.

>> IT'S A VARIETY OF PEOPLE WITHIN THE HOTELS.

THERE IS A DIVERSE GROUP THAT WE WILL WANT SELECT SERVICE, FULL-SERVICE OWNERS, OPERATORS, YES.

>> SALDANA: OKAY.

>> AND IT WILL BE PART OF THEIR BOARD, AND THERE ARE A NUMBER OF CITY REPRESENTATIVES ON VISIT SAN ANTONIO BOARD WHO WILL TAKE PART IN THAT VOTE IN ADOPTING THE BUDGET TO INCLUDE COUNCILMAN TREVINO, COUNCILWOMAN VIAGRAN, THE CITY MANAGER.

I THINK THAT THERE'S A COUPLE OF OTHER ADVISORY POSITIONS ON THE VISIT SAN ANTONIO BOARD.

>> SCULLEY: SO SIX REPRESENTATIVES, MAYOR AND COUNCIL MEMBERS, ON THE VISIT SAN ANTONIO BOARD.

TWO COUNCIL MEMBERS, CITY MANAGER OR DESIGNEE, OUR AVIATION DIRECTOR, RUSS HANDY, THE CONVENTION CENTER DIRECTOR, PATRICE MASKEZ, AND JUAN AYALA, OUR MILITARY AFFAIRS DIRECTOR.

SO WE HAVE A TOTAL OF SIX CITY REPS.

>> SALDANA: HOW BIG IS THE BOARD?

>> 22.

AND THREE HOTELIERS.

>> 22 MEMBERS OF THE BOARD.

>> SALDANA: MAYBE I'M MAKING AN ASSUMPTION THAT ANYBODY, THE SIX THAT THE CITY MANAGER OUTLINED MIGHT HAVE A DIFFERENCE THAN THE INDUSTRY.

MAYBE I'M ASSUMING THAT THERE IS A VOTING AS A BLOCK THAT MIGHT HAPPEN THAT COULD ASSUME A HOTELIER OR A HOTELIER OR TOURIST INDUSTRY WHOSE FOLKS GET UP IN THE MORNING THINKING ABOUT HEADS IN BEDS.

I WOULD LIKE TO SEE PEOPLE WHO GET UP IN THE MORNING WHO THINK ABOUT OTHER ISSUES THAT ARE NOT HEADS AND BEDS.

THAT'S WHAT WE LOST WHEN WE WERE TALKING ABOUT THE CONVENTION AND VISITORS BUREAU BEING MORE PUBLIC THAN PRIVATE.

>> I'M SORRY, BUT WE ALSO HAVE THREE AT-LARGE, AND THEY ARE REPRESENTATIVE OF FROST BANK.

THERE'S A REPRESENTATIVE FROM SPURS SPORTS AND ENTERTAINMENT.

THERE'S A CHAMBER REPRESENTATIVE ON OUR BOARD.

THERE IS A HERITAGE MEMBER OF OUR BOARD.

SO THE WAY THE BOARD IS MADE UP IT WOULD BE VERY DIFFICULT FOR ONE ENTITY OF THE INDUSTRY SECTOR TO HAVE A VOTING BLOC.

>> SALDANA: I JUST WANT TO FINISH UP HERE WITH THE IDEA THAT I THINK AS THE TERMS ARE CURRENTLY WRITTEN ON THE TPID, THERE IS A LOT OF, YOU KNOW, I THINK ABOUT GIVE AND TAKE.

AND I DON'T THINK THAT THERE'S A LOT OF GIVE FROM THE INDUSTRY WITHIN THE AGREEMENT TODAY.

THERE'S A LOT OF TAKE, IN MY OPINION, I'M WORRIED ABOUT THAT BECAUSE I THINK IT IS A WINDFALL AND A GIVEAWAY TO THE INDUSTRY.

I'M HOPING IT WILL ACCOMPLISH TWO THINGS AT ONCE TO GET TO OUR ORIGINAL POINT, CASSANDRA.

I'M HOPING TO KEEP THE INDUSTRY COMPETITIVE, TO GET IT AT 32, 33, BUT SOME PERCENTAGE OF THE TPID WOULD GO TO SUPPORT SOMETHING THAT IS, IN MY EYES I THINK THERE'S AN INTERLINKED CONNECTION.

I COULD DRAW A STRAIGHT LINE BETWEEN THE HOTEL INDUSTRY, TOURISM, AND HOMELESSNESS AND THEM HAVING A STAKE AND VESTED INTEREST IN HOMELESSNESS.

I THINK YOU CAN ACCOMPLISH A PERCENTAGE OF THE TPID GOING TO SUPPORT A HAVEN FOR HOPE OR A NONPROFIT THAT DOES HOMELESSNESS.

I SAY THAT BECAUSE IT'S NOT TRYING TO PLUG A GENERAL FUND GAP FOR US OR IT'S NOT ASKING FOR US TO SUPPORT SWIMMING POOL HOURS OR LIBRARY HOURS, BUT I THINK IT'S SOMETHING THAT THE INDUSTRY WOULD HAVE A VESTED INTEREST.

LIKE I SAID, I COULD ALMOST DRAW A STRAIGHT LINE.

BECAUSE THE ISSUE IS LITERALLY AT YOUR DOOR IN SOME CASES.

I THINK THE HOTEL OWNERS WILL TELL YOU THAT.

AND I THINK ABOUT THE FACT THAT THE CITY OF SAN ANTONIO, WE PUT IN, YOU KNOW, $4.5 MILLION TO SUPPORT HAVEN.

WE PUT A NUMBER OF OTHER CITY TAX DOLLARS INTO SUPPORTING HOMELESSNESS.

AND THE ONLY OTHER PEOPLE WHO ARE DOING THIS ARE THE PRIVATE SECTOR.

IT'S THE VALEROS OF THE WORLD, THE USAAS OF THE WORLD, THE H-E-BS.

I CAN'T DRAW STRAIGHT LINES AS TO WHETHER SOMEBODY WOULD DONATE MILLIONS OF DOLLARS [INDISCERNIBLE] BUT I COULD DO THAT WITH THE TOURISM INDUSTRY.

IT'S NOT A LEAP OR A STRETCH TO LOOK AT THIS TPID THAT IS MORE FLEXIBLE THAN STATE FUNDS AND ASK THAT A PERCENTAGE OF THAT BE DEDICATED TO HOMELESSNESS.

I THINK YOU ALL HAVE A VESTED INTEREST IN THAT.

WE TALKED ABOUT THIS IN SEPTEMBER.

AND I KNOW IT'S GOING TO SOUND LIKE THIS THIS IS A NEW IDEA THAT JUST CAME OUT LAST WEEK.

I MY COLLEAGUES ABOUT IT.

IF THEY CAME BACK TO US WITH A SOLUTION THAT LOOKED LIKE A DIFFERENT TPID THAT HAD A PERCENTAGE, MOST COUNCIL MEMBERS WERE OPEN MINDED.

BUT, OF COURSE, IT IS CONTINGENT UPON AGREEING IF THAT IS SOMETHING THEY WANT TO DO.

THAT'S A BIG IF.

I WOULD HOPE LEVEL HEADS PREVAILED IN THAT CASE.

THEY SAID, LOOK, WE MIGHT CONSIDER BEING ABLE DOING THIS BUT UNLESS YOU CAN CONVINCE PEOPLE THAT TAKING LESS MONEY IS BETTER THAN TAKING MORE MONEY, YOU'RE NOT GOING TO WIN IN THAT ARGUMENT, WHICH IS WHY I THINK I STRUGGLED.

WHEN YOU'VE GOT AN INDUSTRY THAT

[01:50:02]

IS A MULTIBILLION DOLLAR INDUSTRY ASKING TO COME INTO AN AGREEMENT FOR EIGHT YEARS, WHERE $100 MILLION GOES BACK INTO THAT INDUSTRY, I THINK THERE'S NO GIVE AND TAKE THERE.

BECAUSE I THINK YOU CAN DO TWO AT ONCE.

I THINK YOU CAN STILL GIVE 80% OF THE TPID TO THIS INDUSTRY AND GET YOU ALL AT $30 MILLION COMPETITIVE WITH DALLAS, COMPETITIVE WITH AUSTIN.

WAY MORE THAN AUSTIN HAS TODAY.

AND STILL HAVE ALL OF THE UNIQUE FEATURES THAT SAN ANTONIO HAS TO SELL ITSELF.

AND SO I JUST THINK WE'RE BEING VERY, VERY UNCREATIVE IN OUR APPROACH HERE.

I'M NOT TELLING YOU ALL TO PULL THE PARKS, BECAUSE THAT WOULD BE OUTSIDE WHAT I THINK ANY HOTEL INDUSTRY OR HOTELIER WOULD CONSIDER RELEVANT TO THEIR WORK.

LET'S TALK ABOUT YOUR COMMENTS TO THAT.

>> COUNCILMAN, I COULD NOT WAIT FOR YOU TO ASK THIS QUESTION.

SO I AM HAPPY TO SAY THAT IT'S NOT JUST THE VALEROS.

IT'S NOT JUST THE OTHER BUSINESS INTERESTS.

IT'S THE MARRIOTTS, IT'S THE DRURYS, IT IS ALL HOTELS.

THERE ARE HUNDREDS OF EXAMPLES OF HOTELS CONTRIBUTING TO THIS COMMUNITY IN HUNDREDS OF DIFFERENT WAYS.

THERE'S A HOTEL THAT GIVES $175,000 ANNUALLY TO GIVE TO THE SAN ANTONIO CHILDREN'S HOSPITAL.

THERE'S ANOTHER HOTEL THAT HAS GIVEN $1.8 MILLION TO A CHILDREN'S HOSPITAL, ANOTHER CHILDREN'S HOSPITAL.

THAT'S NOT THE SAME HOTEL.

INDIVIDUAL HOTELS GIVE HUNDREDS OF MILLIONS OF DOLLARS.

THERE'S A HOTEL THAT HAS A PROGRAM FOR EVERY RESERVATION THAT IS BOOKED TO THEIR HOTEL, THEY PROVIDE A MEAL TO THE FOOD BANK.

EVERY HOTEL DOES SOMETHING DIFFERENT.

IT'S NOT LIKE WE'RE A MAJOR CORPORATION LIKE WHATABURGER THAT CAN SAY HERE'S ALL OF OUR CHARITABLE GIVING THAT WE CAN PRESENT TO YOU.

THERE ARE HUNDREDS OF OWNERS OF HOTELS AND THEY ALL HAVE A DIFFERENT CHARITY.

I'LL ALSO MENTION THAT THERE ARE RELATIONSHIPS WITH CATHOLIC CHARITIES, WITH GOODWILL INDUSTRIES, WITH WORKFORCE SOLUTIONS, WITH RESTORE EDUCATION WHERE THEY CALL.

THEY LITERALLY HAVE SOMEBODY IN HOTELS THAT THEY SAY, HEY, I HAVE THIS PERSON WHO IS LOOKING FOR A JOB.

CAN YOU HELP ME? ABSOLUTELY.

WE ARE A NEED INDUSTRY.

WE ARE LOOKING FOR EMPLOYEES ALL THE TIME.

I MEAN, IT'S LOW UNEMPLOYMENT.

THERE ARE LOTS OF JOB OPPORTUNITIES.

AND, I MEAN, COUNTLESS NUMBERS OF EXAMPLES OF PEOPLE WHO STARTED IN A LOW-ENTRY POSITION WHO HAVE EXCELLED AND WHO ARE NOW NOT ONLY A MANAGER OR A GENERAL MANAGER, BUT THEY'RE RUNNING THE CORPORATIONS.

THEY ARE THE MANAGERS OF MARRIOTTS.

SO THERE ARE LOTS OF OPPORTUNITIES.

AND WE ARE NOT, OF COURSE, IMMUNE FROM THE HOMELESSNESS ISSUE.

AND WE HAVE TOLD EVERY SINGLE COUNCIL MEMBER THAT WE ARE WILLING AND INTERESTED IN BEING A PARTNER IN A SOLUTION TO PLAY AN ACTIVE ROLE IN A COMMUNITY CONVERSATION ABOUT HOMELESSNESS.

AND OF COURSE THIS DISCUSSION IS ABOUT THE TOURISM PUBLIC IMPROVEMENT DISTRICT.

AND THE GENESIS FOR THE PUBLIC IMPROVEMENT DISTRICT WAS TO MOVE THE NEEDLE ON A BUDGET FOR VISIT SAN ANTONIO.

THAT OUR INDUSTRY INDEPENDENTLY HAS GONE FORWARD TO SAY WE WILL SELF-ASSESS A FEE ON OUR CUSTOMERS TAKING A RISK IN HOPES THAT VISIT SAN ANTONIO IS GOING TO BOOST REVENUE AND BOOST DEMAND FOR THE INDUSTRY.

BUT IT ALSO WILL BENEFIT THE WHOLE ENTIRE CITY.

SO, I MEAN, WHAT MORE CAN YOU ASK FOR? WE ARE PERSONALLY INDEPENDENTLY CONTRIBUTING.

HAVE YOU EVER BEEN TO A SILENT AUCTION WHERE THERE IS NOT FREE NIGHTS FOR SILENT AUCTION ITEMS DONATED FOR A HOTEL STAY, A SPA TREATMENT, A RESTAURANT, SIX FLAGS? ALL THOSE ARE IN OUR INDUSTRY MAKING PERSONAL CONTRIBUTIONS AND DONATIONS TO OUR COMMUNITY.

AND OUR COMMUNITY, AS WE MENTIONED, IT'S A REVENUE GENERATION INDUSTRY.

WE ARE ALSO THE LARGEST PARTICIPANT FINANCIALLY WITH THE CENTRO PID.

WE ARE THE MAJORITY INVESTOR.

AND THERE ARE SPECIFIC PROGRAMS AT CENTRO THAT RELATED TO HOMELESSNESS.

AND SO THERE ARE A MULTITUDE OF WAYS THAT OUR INDUSTRY IS DIRECTLY AND INDIRECTLY IMPACTING THIS COMMUNITY IN LARGE WAYS, IN SIGNIFICANT WAYS.

AND, AGAIN, WE'RE HAPPY TO TELL THAT STORY.

I HAVE SEVERAL BOARD MEMBERS HERE.

THEY EACH AND EVERY ONE OF THEM CAN TELL A STORY ABOUT DONATIONS, VOLUNTEER TIME.

[01:55:02]

THERE'S A HOTEL THAT EVERY SINGLE ONE OF THEIR EMPLOYEES IS EXPECTED TO VOLUNTEER EVERY YEAR.

THAT'S PART OF THEIR PROGRAM.

YOU ARE EMPLOYED HERE, YOU CAN GOING TO VOLUNTEER.

AND SO, AGAIN, WE UNDERSTAND THAT THERE IS A DIRECT BENEFIT AND WE ARE WILLING TO BE AT THE TABLE.

THIS VEHICLE, THIS WAS NOT THE INTENT OF THIS VEHICLE.

SO WHAT MOVES FORWARD IN A COMMUNITY, THOUGHTFUL PROCESS, MAYBE THAT'S ANOTHER TWO-YEAR PROCESS.

WE WANT TO BE PART OF IT.

WE ARE COMMITTED TO BEING A PART OF IT.

WE ARE COMMITTED TO HAVING A SEAT AT THE TABLE AND TO PLAY AN ACTIVE ROLE.

BUT THIS IS NOT -- THE GENESIS OF THIS IS NOT TO DO ANYTHING ELSE OTHER THAN WHAT WE HAVE PROVIDED YOU TODAY AND WHAT WE HAVE PRESENTED YOU TODAY.

SO WE LOOK FORWARD TO CONTINUING THE CONVERSATION, COUNCIL COUNC.

THIS HAS SPARKED ANOTHER INTEREST IN AN ISSUE THAT IS IMPORTANT TO EVERYBODY, INCLUDING US.

>> SALDANA: CASSANDRA AND LISA AND SCOTT, I HOPE YOU'LL FORGIVE ME.

THERE'S A LITTLE BIT OF CONFLICT OF INTEREST IN THE THINGS THAT I CARE ABOUT.

IT'S A LITTLE DIFFERENT THAN WHAT YOU ALL MIGHT CARE ABOUT.

I DON'T WORK FOR THE HOTEL INDUSTRY.

I WORK FOR THE PEOPLE WHO ELECT ME.

AND IT SHOULDN'T BE SURPRISING TO FOLKS THAT I MIGHT ASK ABOUT THIS OPPORTUNITY.

AND YOU HAVE EVERY RIGHT TO SAY NO.

THE HOTEL INDUSTRY HAS EVERY RIGHT TO SAY NO, BUT THEY ALSO SHOULDN'T FIND IT SURPRISING THAT A CITY COUNCIL AUDIO] DOESN'T PUT PRESSURE ON THEM AND OUR BUDGET, BUT ACTUALLY ASKS TOURISTS TO HELP SUPPORT AN ISSUE THAT IS CRITICALLY IMPORTANT TO TOURISM, WHICH IS HOMELESSNESS.

AND, AGAIN, I'M TRYING TO ACCOMPLISH WHAT I HOPE IS TWO THINGS AT ONCE BY SAYING THAT WE CAN BE COMPETITIVE AT 80 AND 90% OF THE TPID AND A REVENUE OF $9 MILLION A YEAR OVER EIGHT YEARS AND STILL BE ABLE TO SAY AT THE END OF MY HOTEL BILL I DON'T THINK THAT'S A CRAZY IDEA.

BUT, HEY, LOOK, I'M AN ELECTED OFFICIAL.

I HAVE A DIFFERENT SET OF CONSTITUENTS THAT I ANSWER TO.

AND I THINK YOU ALL ARE DOING A WONDERFUL JOB, BECAUSE YOU ANSWER TO A DIFFERENT CONSTITUENCY THAN I DO.

FOR THE PURPOSES OF TRYING TO GET HEADS IN BEDS, YOU'RE DOING A GREAT JOB.

I HAVE A DIFFERENT OPINION.

AND WHEN AN OPPORTUNITY COMES FORWARD WHERE WE CAN ACTUALLY TRY TO SOME OF THE BOARD INTERNALLY.

UNFORTUNATELY, THE ANSWER WAS NO TO BEGIN WITH.

I THINK THAT WAS DISAPPOINTING TO ME.

AND I DON'T THINK IT WAS NAIVE FOR ME TO TRY TO EXPECT A DIFFERENT ANSWER.

>> COUNCILMAN, THE ONLY THING I WILL SAY TO THAT IS IT WAS NOT NO AT THE VERY BEGINNING.

WHEN THIS WAS EVEN AN IDEA, WE WERE AT LIKE TWO DAYS AWAY FROM GIVING ALL THE SIGNED PETITIONS TO THE CLERK'S OFFICE.

WE'VE BEEN PART OF THIS PROCESS FOR TWO YEARS.

IT WAS A VERY THOUGHTFUL AND TRANSPARENT PROCESS.

AND SO, YOU KNOW, WE'RE VERY PROUD THAT WE WERE ABLE TO SELL THE INDUSTRY.

THERE IS GOING TO BE GREAT COMMUNITY-WIDE ECONOMIC IMPACT.

>> SALDANA: WAS THAT IN SEPTEMBER THAT YOU WERE TWO DAYS AWAY?

>> WE HAD THE MAJORITY OF OUR SIGNATURES ALREADY WRAPPED UP.

AND VERY SHORTLY TURNED THEM INTO THE CITY CLERK'S OFFICE.

>> SALDANA: YOU'RE TELLING ME IT TAKES A MONTH AND A HALF TO GO OUT TO OUR CONSTITUENCY AND GET THE PULSE?

>> NO, WE STARTED IN JUNE.

ONCE WE RECEIVED YOUR APPROVAL --

>> SALDANA: AT THE END OF JUNE.

>> ON THE LEGAL DOCUMENTS.

>> SALDANA: YEAH.

SO HERE'S MY TALL ASK.

BUT THE QUESTION IS WILL THEY -- WE ALREADY KNOW THE ANSWER TO ONE QUESTION.

THEY WILL SUPPORT THIS IF 100% OF THIS GOES BACK TO SALES AND MARKETING.

THE ANSWER TO THE QUESTION I DON'T KNOW IS WOULD THEY STILL SUPPORT THIS IF 10, 15, 20% WENT TO SUPPORT SOLVING HOMELESSNESS.

AND THAT'S WHAT I THINK IS BEING CREATIVE.

BECAUSE IT WILL COST US A FEW MONTHS TO DO THIS.

I GRANT YOU, IT WILL TAKE US INTO THE NEXT YEAR, BUT THIS IS AN AGREEMENT FOR EIGHT YEARS.

THE NEXT TIME WE TALK ABOUT IT IS 2027.

AND SO THE IDEA FOR ME IS THAT THIS WOULD COST US A FEW MONTHS BUT WOULD BE A CONTRACT THAT WE SIGN FOR EIGHT YEARS IS A LITTLE HARD FOR ME TO SWALLOW IN TERMS OF WHY THIS IS SUCH A TALL ASK.

>> SURE.

COUNCILMAN, I WOULD TELL YOU THAT OUR INDUSTRY WANTS TO BE PART OF A COMMUNITY-WIDE, NOT ONLY DISCUSSION, BUT AN ACTIVE SOLUTION.

AND WE KNOW THAT THAT WILL MEAN INVESTMENT.

WE JUST DO NOT FEEL, BASED ON CONVERSATIONS WITH HOTEL OWNERS, THAT WE WOULD BE ABLE TO ACHIEVE

[02:00:02]

THAT WITH THIS PARTICULAR VEHICLE.

BUT WE HAVE TOLD EVERY ONE OF YOU THAT WE ARE SERIOUS ABOUT BEING PART OF, NOT ONLY THE DISCUSSION, BUT AN ACTIVE PARTICIPANT AS AN INDUSTRY TO HELP WITH THIS ISSUE.

>> ONE THING I WOULD NOTE, COUNCIL MEMBER, IS THAT ONE OF THE THINGS THAT I'VE HEARD FROM HOTEL OWNERSHIP GROUPS IS THAT WHAT WE WOULD ENVISION AS A CREATIVE SOLUTION -- YOU'RE TALKING ABOUT CREATIVITY.

HOMELESSNESS NOT ONLY AFFECTS COMMERCIAL BUSINESSES SUCH AS HOTELS.

IT AFFECTS ALL OF OUR RESTAURANTS, ALL OF OUR RETAIL, ALL OF OUR SERVICE PROVIDERS, ALL OF OUR PROPERTY OWNERS WITHIN THAT DISTRICT OR THAT AREA.

IN FACT, CITYWIDE I WOULD ARGUE.

TO US A CREATIVE SOLUTION DOESN'T MEAN YOU TAKE THE TOURISM INDUSTRY AND SAY YOU'RE GOING TO BE A SOLE REVENUE STREAM FROM THE COMMERCIAL SECTOR.

TO US WE OUGHT TO SIT DOWN AT THE TABLE AND LOOK AT HOW CAN WE WORK WITH THE ENTIRE COMMERCIAL COMMUNITY AND ALL OF THE STAKEHOLDERS THAT WOULD BENEFIT FROM ADDRESSING THIS SITUATION AND ALL BE A PARTICIPANT IN THAT.

AND WE WOULD BE AT THAT TABLE AND TRY TO HELP IN A POSITIVE AND ACTIVE WAY.

SO THAT'S PART OF THE CONCERN.

IT'S NOT THAT WE SAID NO.

WE SAID THIS MAY NOT BE THE VEHICLE.

WHAT WE WOULD LIKE TO SEE IS A VEHICLE THAT IS A MORE COLLECTIVE APPROACH FOR THE ENTIRE COMMERCIAL SECTOR.

>> SALDANA: AND I THINK THAT BEGETS THE QUESTION OF AM I SINGLING OUT THE HOTEL INDUSTRY? AND I DON'T THINK THAT'S THE CASE.

I THINK WHAT I'M DOING IS CALLING OUT AN INDUSTRY THAT HASN'T BEEN SUPPORTING TO THE LEVEL THAT OTHERS HAVE ON THIS ISSUE.

SO LET ME BE CLEAR.

THIS IS NOT THE 20TH CENTURY SAN ANTONIO HISTORY WHERE WE WERE ONLY A TWO ECONOMY TOWN.

WE HAVE DIVERSIFIED THE WAY WE EXPERIENCE SAN ANTONIO AND BRING IN REVENUE.

I THINK THAT GIVES US FULL AUTHORITY TO UNDERSTAND WHAT KIND OF QUESTIONS WE CAN ASK WITHOUT BEING OUT OF BOUNDS.

AND I THINK ONE OF THE QUESTIONS WE CAN ASK IS IT POSSIBLE NOT TO ASK ANY COMMERCIAL RESIDENT TODAY TO PAY MORE OUT OF WHAT THEY CURRENTLY PAY AND ASK TOURISTS TO SUPPORT SOME OF THE ISSUES, LIKE HOMELESSNESS, THAT WE HAVE A CONNECTION TO WITHIN THE INDUSTRY.

AND I THINK YOU CAN DO THAT WHILE STILL BEING COMPETITIVE WITH ANY OTHER CITY.

BECAUSE WE ARE GOING TO GIVE YOU ANOTHER 8, 9 PLUS MILLION A YEAR.

LET ME PASS IT TO MY COUNCIL COLLEAGUES.

THEY HAVE A LOT TO SAY AND I AM MORE THAN HAPPY TO GO BACK AND FORTH ON THIS.

BUT, LOOK, WE'RE HAVING A BETTER DISCUSSION TODAY THAN WE HAD ON THE 21ST.

I APOLOGIZE THAT WE DIDN'T HAVE THIS ON THE 21ST.

BUT IF WE HAVE A VOTE, WE STILL HAVE EVERY AUTHORITY AND EVERY RESPONSIBILITY AS A COUNCIL TO CONSIDER WHAT KIND OF CONVERSATION WE CAN NET TO SUPPORT ISSUES THAT ARE IMPORTANT IN OUR COMMUNITY.

AND, LOOK, I'M BIASED THAT I WANT TO SUPPORT HAVEN FOR HOPE, BECAUSE I KNOW COMMUNITY MEMBERS WHO HAVE LIFTED THEMSELVES UP FROM THAT.

WE SUPPORT TO THE TUNE OF $4.5 MILLION EVERY SINGLE YEAR OUT OF OUR BUDGET.

THE PRIVATE SECTOR HAS KICKED IN IN A NUMBER OF WAYS AT A SCALE MUCH LARGER THAN A HOTEL INDUSTRY OR OWNER HAS.

THE QUESTION IS LET'S NOT ASK ANY MORE TAX OR BURDEN FOR SAN ANTONIO RESIDENTS.

IF THEY ARE KNOCKING ON OUR DOORS SAYING WE WANT TO CHARGE OUR FOLKS MORE, THEN WHY DON'T WE ASK THEM TO HAVE A CREATIVE CONVERSATION AROUND SUPPORTING AN ISSUE THAT WE CARE ABOUT? THAT'S WHAT I THINK I'M PROPOSING.

EITHER I HAVE A BAD IDEA OR I HAVE BAD TIMING.

CRITICIZE ME ON THE TIMING, BUT THEN TELL ME THAT THIS IDEA IS TERRIBLE, THAT WE SHOULD ASK TOURISTS TO PAY INTO HOMELESSNESS AND HOMELESS SOLUTIONS IN SAN ANTONIO.

>> MAYOR NIRENBERG: THANK YOU VERY MUCH, COUNCILMAN SALDANA.

AND LET ME JUST SAY I'M HEARING SOME VOCAL REACTIONS.

THE COUNCILMAN IS WELL WITHIN HIS RIGHT TO HAVE THIS CONVERSATION, AND THAT SHOULD NOT BE AT ODDS HERE.

SO I APPRECIATE YOU DOING THAT WITH THOUGHTFULNESS AND ALSO COLIEGEALTY.

SHERYL, DO YOU HAVE SOME COMMENTS?

>> SCULLEY: NO, JUST FACTUALLY TO SHARE WITH COUNCIL.

SO THE HAVEN FOR HOPE ANNUAL BUDGET IS $20 MILLION.

ABOUT 38% OF THAT COMES FROM THE PRIVATE SECTOR, THE REST IS PUBLIC SECTOR.

SO THE CITY OF SAN ANTONIO, $4.5 MILLION TO THE ACTUAL HAVEN FOR HOPE.

AND THEN WE DO ANOTHER OVER $3 MILLION TO AGENCIES AT HAVEN FOR HOPE.

LIKE THE CENTER FOR HEALTHCARE SERVICES AND THE FOOD BANK AND ST. VINCENT DE PAUL.

OUR TOTAL APPROACH IS $8 MILLION ANNUALLY TO SUPPORT SERVICES THERE.

ABOUT $4.5 MILLION FOR HAVEN FOR HOPE ITSELF.

BUT THE STATE GRANTS ARE $5 MILLION, GOVERNMENT $650,000.

BEXAR COUNTY DOES JUST UNDER $1 MILLION.

UNITED WAY, $1.3 MILLION.

SO ABOUT 38% IS COMING FROM THE PRIVATE SECTOR FOR THE ANNUAL HAVEN FOR HOPE BUDGET OF $20 MILLION.

AND MOST OF THAT NOW GIVE A

[02:05:02]

SHOUT OUT TO BILL GREEHEY AND THE FAMILY FOUNDATION AS WELL AS NEW STAR FOUNDATION, BECAUSE THEY ARE A MAJORITY OF THAT PRIVATE SECTOR MONEY.

BUT JUST SO YOU HAVE THE FACTS ABOUT THE ANNUAL BUDGET, ABOUT 38% IS PRIVATE.

>> MAYOR NIRENBERG: OKAY.

AND LET ME MAKE SOME COMMENTS, NOW THAT WE HAVE KIND OF OPENED IT UP A LITTLE BIT MORE BROADLY ON HOMELESSNESS AND SO FORTH, AND THEN I'LL PASS IT TO COUNCILMAN PELAEZ.

ADDRESSING HOMELESSNESS HAS BEEN A PRIORITY OF THIS COMMUNITY AND THE CITY COUNCIL, NOT JUST THIS ONE, BUT FOR MANY YEARS.

IN 2006 UNDER THE LEADERSHIP OF THEN MAYOR PHIL HARDBERGER, A TASK FORCE WAS APPOINTED AND CO-CHAIRED BY PATTY.

AND NEW STAR CHAIRMAN BILL GREEHEY TO STUDY THE ISSUE OF HOMELESSNESS.

THE TASK FORCE RECOMMENDED A PUBLIC-PRIVATE PARTNERSHIP TO DEVELOP A CAMPUS OF COMPREHENSIVE SERVICES FOR HOMELESS INDIVIDUALS AND FAMILIES.

THE HAVEN FOR HOPE CAMPUS OPENED IN 2010, HAS BEEN WELL SUPPORTED.

AND AS A PARTNERSHIP BETWEEN THE CITY OF SAN ANTONIO AND HAVEN FOR HOPE.

THE CITY PURCHASED THE LAND WHERE THE CAMPUS IS LOCATED TODAY AND BILL GREEHEY PRIVATELY RAISED $61 MILLION OF THE $100 MILLION CAMPUS.

AS A TESTAMENT TO THIS PARTNERSHIP, THE CITY HOLDS A 60-YEAR GROUND OPERATING LEASE AGREEMENT WITH HAVEN FOR HOPE AND HAS SUPPORTED ITS OPERATIONS SINCE ITS OPENING.

TODAY THE CITY FUNDS $4.6 MILLION OF THE $20 MILLION OPERATING BUDGET.

ADDITIONALLY THIS CITY, THE CITY OF SAN ANTONIO, PROVIDES $3 MILLION FOR HAVEN FOR HOPE PARTNERS, INCLUDING THE FOOD BANK AND THE CENTER FOR HEALTHCARE SERVICES.

THE GREEHEY FAMILY FOUNDATION AND BILL GREEHEY HAVE MADE FINANCIAL CONTRIBUTIONS TO HAVEN FOR HOPE ENDOWMENT AND CAMPUS OPERATIONS SINCE ITS OPENING.

IT IS A GOLD STAR PUBLIC-PRIVATE PARTNERSHIP.

ADDITIONALLY, NEW STAR ENERGY CONTRIBUTES $3 MILLION ANNUALLY FROM THE NEW HOPE GOLF TOURNAMENT GOING TOWARDS HAVEN'S ANNUAL OPERATING BUDGET.

THESE INVESTMENTS HAVE SHOWN RESULTS AND WE ARE ALWAYS HONING IN ON OUR APPROACH TO HOMELESSNESS SERVICES THAT INCLUDES FAR MORE THAN JUST THE HAVEN CAMPUS.

SINCE 2010, CLOSE TO 4500 INDIVIDUALS HAVE EXITED THE TRANSFORMATIONAL CAMPUS AND MOVED TO PERMANENT HOUSING.

WE HAVE SEEN A 20% DECLINE IN CHRONIC HOMELESSNESS.

SINCE 2011 WE HAVE SEEN A 35% DECREASE IN THE NUMBER OF HOMELESS VETS DUE TO THE EFFORTS OF OUR COMMUNITY PARTNERS.

WE CANNOT REST ON OUR PROGRESS IN SOME AREAS.

WHILE WE HAVE SEEN A 19.6% DECREASE OF HOMELESS INDIVIDUALS PER CAPITA SINCE 2010, THE NUMBER OF HOMELESS PEOPLE INCREASED LAST YEAR BY MORE THAN 300.

THIS IS WHY WE MUST KEEP PUSHING FORWARD.

AND I WANT TO SAY THANK YOU TO COUNCIL MEMBER SALDANA FOR WORKING TO ENSURE THIS CONVERSATION WILL STAY AT THE FOREFRONT.

GIVEN THE IMPORTANT ROLE THAT HAVEN FOR HOPE PLAYS IN OUR COMMUNITY, THE CITY MANAGER IDENTIFIED MORE SUSTAINABLE FUNDING ALTERNATIVES IN EARLY NOVEMBER.

AND SO I'M ASKING THE CITY MANAGER AND THE CITY STAFF TO WORK WITH THE HOSPITALITY INDUSTRY, AS WE HAVE HEARD CLEARLY, ON THE RECORD, VISIT SAN ANTONIO AND THE COMMUNITY AT LARGE TO IDENTIFY ADDITIONAL SPECIFIC ALTERNATIVES THAT COULD BE PART OF A LONG-TERM SUSTAINABILITY PLAN FOR HAVEN FOR HOPE AND THE WRAPAROUND SERVICES THEY PROVIDE TO OUR HOMELESS COMMUNITY.

EVERYONE MUST COME TOGETHER TO DO THEIR PART TO TACKLE THIS ISSUE.

AND WE HAVE TO PROMISE OURSELVES AROUND THE DAIS THAT THIS ISN'T JUST A CONVERSATION WE'RE STARTING TO GET OVER THE INITIAL CONTROVERSY AND THAT IT FADES AWAY.

BUT THAT WE COME BACK WITH AN ACTUAL STRATEGIC PLAN TO GET IT DONE, A SPENDING PLAN THAT ADDRESSES HOMELESSNESS.

THE FUNDING ALTERNATIVES MERIT A MORE IN-DEPTH CONVERSATION, AND THAT IS WITHIN THE CONTEXT OF A CONVERSATION ABOUT A BROADER STRATEGY TO ADDRESS HOMELESSNESS AND HOW FUNDING WILL BE USED TO EXECUTE THAT STRATEGY.

TO BE GOOD FISCAL STEWARDS WE MUST ENSURE PUBLIC DOLLARS ARE USED EFFECTIVELY.

AND SO I'M REQUESTING THAT OUR CITY MANAGER AND THE CITY STAFF COME BACK TO THIS CITY COUNCIL WITH RECOMMENDATIONS BEFORE A B SESSION AT THE TURN OF THE YEAR, BEFORE THE MID-YEAR FINANCIAL REVIEW.

SO WE WILL HAVE OPTIONS IN THE NEAR TERM AND ALSO THE BEGINNING AT LEAST OF A SUSTAINABILITY PLAN FOR HAVEN.

AGAIN, I CAN'T EMPHASIZE ENOUGH, YOU KNOW, WE STOPPED SHORT AT JEERING.

BUT I WANT TO SAY THIS.

THIS COUNCIL IS NOT A RUBBER STAMP.

AND SO WE HAVE A SERVICE PLAN THAT WE AGREED TO, UNANIMOUSLY.

WE HAVE A CONTRACT AND WE HAVE A MISSION OF VSA TO PROMOTE THIS COMMUNITY THAT HAS FAR MORE BENEFITS THAN JUST HOTELS.

I THINK WE CAN ALL AGREE WITH THAT.

BUT TO SUGGEST THAT COUNCILMAN SALDANA IS NOT WITHIN HIS RIGHT TO BRING UP A REALLY IMPORTANT CONVERSATION ABOUT HOMELESSNESS IS FALLING SHORT OF OUR DUTIES AS COUNCIL MEMBERS.

SO I APPLAUD YOUR EFFORTS AND I HOPE THAT WE CAN CONTINUE THE CONVERSATION TO ITS CONCLUSION, BUT THAT THE TPID IS FINE AND WE'LL MOVE FORWARD AS IS.

[02:10:01]

COUNCIL MEMBER PELAEZ.

>> PELAEZ: THANK YOU, MAYOR.

SO FOLLOWING UP ON THOSE COMMENTS, I'LL TELL YOU THAT EVERY SINGLE CITY COUNCIL PERSON AT THE -- IN THIS ROOM OVER THE PAST TWO YEARS HAS EXHIBITED SIGNIFICANT LEADERSHIP IN THEIR DIFFERENT INITIATIVES.

I CAN'T THINK -- WELL, EVERY SINGLE ONE.

THAT'S NOT AN EXAGGERATION.

YOU KNOW, MR. PERRY AND MR. COURAGE AND MR. BROCKHOUSE AND SANDOVAL AND MS. GONZALES HAVE ALL PICKED FIGHTS, RIGHTEOUS FIGHTS, GOOD ONES.

AND SOMETIMES I DISAGREE AND SOMETIMES I AGREE.

THAT'S LEADERSHIP.

LEADERSHIP IS ASKING HARD QUESTIONS AND THE WILLINGNESS TO HAVE DIFFICULT CONVERSATIONS AND CHALLENGING BELIEFS.

EXPLORING REALLY CREATIVE IDEAS, TAKING THE RISK OF BEING CRITICIZED FOR THOSE IDEAS, INVITING DEBATE, SERVING UP REALITY CHECKS AND NEVER MISSING AN OPPORTUNITY TO DO THE RIGHT THING.

AND SO I'LL TELL YOU I LOVE THAT WE'RE HAVING THIS CONVERSATION.

AND COUNCILMAN SALDANA, YOU'RE RIGHT TO BRING IT TO OUR ATTENTION AND YOU'RE RIGHT TO BRING IT TO THIS TABLE.

YOU KNOW, HOMELESSNESS, I'LL BE FRANK WITH YOU, HOMELESSNESS IS SOMETHING WE HAVEN'T TALKED ABOUT ENOUGH.

I'VE BEEN HUNGRY FOR THIS CONVERSATION ABOUT HOW IT IS THAT WE'RE GOING TO SOLVE THIS PROBLEM AND HOW IT IS THAT WE'RE GOING TO INVEST IN THAT SOLUTION.

AND IF YOU HAD AN IDEA ON HOW TO DO IT, I'LL LISTEN TO EVERY ONE OF YOUR IDEAS AND EVERYBODY AT THIS TABLE WHO HAS GOOD IDEAS ABOUT HOW TO DO THIS.

COUNCILMAN PERRY, YOU HAVE BEEN VERY VOCAL ON THE ISSUE OF HOMELESSNESS AND PANHANDLING.

YOU HAVE IDEAS.

MR. BROCKHOUSE, YOU HAVE SOME SORT OF ANALYSIS YOU'RE DOING IN YOUR DISTRICT, WHICH IS ADMIRABLE TOO.

I WISH I HAD THOUGHT ABOUT THAT, AND I'M THINKING ABOUT STEALING YOUR IDEA.

BUT EVERY ONE OF US NEEDS TO HAVE THAT CONVERSATION.

AND THE FIRST TIME WE'VE HAD THIS REALLY ROBUST CONVERSATION JUST HAPPENS TO BE AT A MEETING WHERE WE'RE SUPPOSED TO BE DISCUSSING THE TIRZ AND PUBLIC IMPROVEMENT DISTRICT.

I KNOW THIS IS FRUSTRATING FOR YOU GUYS AND THAT YOU WORKED REALLY, REALLY HARD ON IT.

BUT I DO SUPPORT COUNCILMAN SALDANA'S, YOU KNOW, EFFORT TO GET YOU GUYS TO TALK ABOUT IT.

I'M HAPPY YOU HAVEN'T BEEN ALLERGIC TO THE CONVERSATION AND YOU'RE WILLING TO CHALLENGE ASSUMPTIONS AND IDEAS AS WELL.

IT'S CLEARLY A CONVERSATION WE NEED TO HAVE MORE.

I TAKE YOU AT YOUR WORD AND I AM GOING TO CHALLENGE YOU WHEN THIS TPID ISSUE IS BEHIND US, AND THAT IS TO REALLY INVITE YOU ALL BACK TO THE TABLE TO SEE IF YOU REALLY MEAN IT.

AND TO CASH THE CHECK THAT YOU GUYS JUST WROTE WITH YOUR MOUTHS, WHICH IS WE WANT TO HAVE A CONVERSATION WITH YOU AND FIND A SOLUTION TO HOMELESSNESS, AS MUCH AS YOU GUYS DO.

I BELIEVE YOU DO.

I AM WORRIED ABOUT HAVEN FOR HOPE.

SHERYL, THANK YOU FOR EXPLORING THE DIFFERENT FUNDING OPPORTUNITIES HERE.

JUST TO CALL EVERYBODY'S ATTENTION TO ONE PROBLEM IS THAT, YOU KNOW, BILL GREEHEY HAS BEEN A FANTASTIC BENEFACTOR OF HAVEN FOR HOPE.

AND SO HAS NEW STAR.

I MEAN, TENS UPON TENS UPON TENS OF MILLIONS OF DOLLARS OF THEIR OWN MONEY.

BUT THAT'S NOT GOING TO LAST FOREVER.

BILL GREEHEY IS ONE DAY GOING TO DO OTHER THINGS.

AND NEW STAR MAY DECIDE TO REDEDICATE THOSE FUNDS SOMEWHERE ELSE.

AND IF WE DON'T FIND A WAY TO CONTINUE INJECTING , YOU KNOW, RESOURCES INTO HAVEN FOR HOPE, WELL THEN THAT'S ON US.

SO I WILL WORK WITH YOU, MAYOR, AND I'LL WORK WITH ANYBODY WHO WANTS TO FIGURE OUT A WAY TO MAKE SURE THAT MISSION SUCCEEDS.

TWO, I THINK THE TOURISM INDUSTRY, YOU GUYS GET A BAD RAP SOMETIMES.

I DON'T KNOW IF YOU KNOW THIS, BUT I'M A PROUD MEMBER OF THE TEXAS HOTEL AND LODGING ASSOCIATION.

MY LAW FIRM IS.

I'VE LEARNED SOME REALLY COOL THINGS THIS YEAR ABOUT THE TOURISM INDUSTRY.

RECENTLY IN COLORADO WHERE, YOU KNOW, ALONG WITH ALL THE VENDORS FOR MATTRESSES AND TOWELS AND PILLOWS AND, YOU KNOW, POINT OF SALES, YOU KNOW, SOFTWARE AND OTHER THINGS, THERE'S BOOTHS UPON BOOTHS OF NONPROFITS WHO SET UP THEIR BOOTHS THERE.

LIKE, YOU KNOW, THE HEART ASSOCIATION AND NONPROFITS DEDICATED TO HOMELESSNESS AND CHILDREN AND ALL THAT.

WHEN I WAS APPROACHING AND TALKING TO THEM, I SAID WHY ARE YOU GUYS HERE? THEY SAID WE ALL COMPETE TO GET IN FRONT OF THE HOTEL INDUSTRY BECAUSE THEY SIGN US UP AS PARTNERS BECAUSE, YOU KNOW, ALMOST EVERY SINGLE FLAG THAT FLIES REQUIRES THE HOTEL OWNERS TO, YOU KNOW, DEDICATE A CERTAIN PORTION OF THE ROOM NIGHTS BACK TO THESE NONPROFITS.

AND WE WOULD LIKE TO, YOU KNOW, BE A PART OF THAT.

THAT'S NOT UNIMPORTANT.

WITH MILLIONS OF PEOPLE STAYING IN HOTELS EVERY SINGLE DAY.

JUST THINK ABOUT THE SHEER AMOUNTS OF MONEY THAT GO BACK TO NONPROFITS, LOCAL AND NATIONAL.

THAT'S NOT LOST ON ME.

THE PROBLEM IS I'M JUST NOT SURE

[02:15:02]

YOUR INDUSTRY IS REALLY GOOD AT TELLING THAT STORY.

WE TALKED ABOUT THIS YESTERDAY.

SEEMS TO ME YOU HAVE A GREAT OPPORTUNITY TO SORT OF REMIND SAN ANTONIO ABOUT ALL THE THINGS THAT YOU DO DO.

AND THAT PEOPLE DON'T KNOW THAT.

WELL, MAYBE A MANAGEMENT FAILURE ON YOUR INDUSTRY'S PART.

IT SEEMS LIKE AN OPPORTUNITY FOR YOU GUYS TO BE FED UP.

SO WITH REGARDS TO THE ISSUE OF THE TPID, WOULD YOU BE THE GENERAL COUNSEL OF THIS TPID, SCOTT?

>> I'M TRYING TO UNDERSTAND THE MANAGEMENT STRUCTURE.

>> WE HAVE A NONPROFIT HOTEL ASSOCIATION.

WE GENERALLY VOLUNTEER, BECAUSE I HAVE A STAFF OF LAWYERS THAT ARE EXPERTS.

WE WOULD BE GLAD TO VOLUNTEER IF THEY WOULD LIKE IT.

BUT WE HAVEN'T FORMALLY ARRANGED ANY SORT OF STATUS OF THAT NATURE.

>> PELAEZ: I WALKED INTO THIS ROOM WITHOUT AN UNDERSTANDING, AND IT'S BAD ON ME BECAUSE I SHOULD HAVE ASKED YOU YESTERDAY.

LIKE WHAT IS THE SORT OF STRUCTURE OF WHO MANAGES IT, WHO APPOINTS? HOW DOES A PERSON GET ON THIS BOARD?

>> SO, THANKS FOR THE QUESTION.

THE STRUCTURE IS THAT THE TPID CORPORATION WILL BE ESTABLISHED.

THERE'S LANGUAGE THAT NEEDS TO BE FILED TO THE SECRETARY OF STATE'S OFFICE, I BELIEVE, TO FORMALIZE THE ACTUAL CORPORATION, INCLUDING WITH THE BYLAWS.

WE ARE HOPING TO HAVE THE BOARD, THE NEWLY-APPOINTED BOARD TAKE A LOOK AT THE BYLAWS BEFORE WE FORMALLY DO THAT, JUST TO GET INPUT.

AND SO IN SHORT ORDER THOSE THINGS WOULD HAPPEN IN ORDER TO FORM THE BOARD.

AND THEN IT WILL BE A NEWLY-CREATED ENTITY AND WE'LL HAVE A LOT OF WORK TO DO.

>> PELAEZ: SCOTT, HAVE YOU EVER SEEN ONE OF THESE TPIDS AMENDED BY A CITY AFTER A FEW YEARS?

>> NO, THE NATURE -- IT'S KIND OF LIKE HAVING A BOND PROPOSITION.

ONCE YOU PUT TOGETHER WHAT ARE THE ASPECTS OF THAT, THAT PROPOSITION, THAT'S THE OUTLINE.

YOU CAN AMEND IT SLIGHTLY WITHIN LIKE MAYBE IN THE MARKETING OR IN THE SALES OR IN THE RESEARCH OR ADMINISTRATION.

YOU CAN ALLOCATE DIFFERENT MINOR AMENDMENTS.

BUT OTHERWISE, IF IT'S ANYTHING OTHER THAN MINOR AMENDMENTS, IT WOULD VIOLATE THE TERMS OF THE PETITION AND THE SERVICE PLAN THAT WAS ADOPTED.

>> PELAEZ: OKAY.

AND THIS IS A NONPROFIT ORGANIZATION, RIGHT? SO THEY'RE NOT SUBJECT TO ANY SORT OF TAXATION ON THE REVENUE REALIZED FROM THIS, RIGHT?

>> IT'S A 501C6 ENTITY CREATED.

IT'S CALLED A TIRZ AND PUBLIC IMPROVEMENT MANAGEMENT CORPORATION.

>> PELAEZ: WHERE IS THAT MONEY BANKED?

>> TYPICALLY THE TPID DOESN'T MANAGE OR HOLD -- IT OVERSEES THE MONEY, BUT THE CITY ALLOCATES IT IN A CHECK TO THE CVB THAT KEEPS IT USUALLY IN A SEPARATE FUND FOR THE TIRZ AND PUBLIC IMPROVEMENT DISTRICT.

AND THEN THE CVB MANAGE IT, JUST LIKE THEY MANAGE THE HOTEL OCCUPANCY TAX FUND.

>> PELAEZ: LOCAL BANK? OKAY.

ALL RIGHT.

THANK YOU.

NO FURTHER QUESTIONS.

THANKS, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PELAEZ.

COUNCILMAN BROCKHOUSE.

>> BROCKHOUSE: THANK YOU, MAYOR.

CASSANDRA AND LISA, COUNCILMAN SALDANA ONCE SAID TO ME AFTER I SPOKE AND HE FOLLOWED ME WAS THAT THERE WAS A BUFFET OF ITEMS FOR HIM TO HAVE A CONVERSATION ON.

THAT'S EXACTLY HOW I FEEL RIGHT NOW.

THERE'S A BUFFET OF THINGS TO UNPACK, COMMENTS AND STATEMENTS THAT WERE MADE.

I WILL DISAGREE WITH A COUPLE OF POINTS ON THE FACT THAT I THINK THERE ARE INTENTIONS AND MOTIVES.

WHILE IT IS ADMIRABLE TO BRING UP ISSUES, THERE'S ALSO A TIMING PIECE TOO.

YOU NEED TO LOOK AT COMMITMENTS AND THINGS YOU'VE MADE TO PEOPLE WHO YOU WORK WITH.

AND THE BIGGEST THING WE HAVE COMING OUT OF CITY COUNCIL, THE LAST THING WE HAVE THAT'S MEASURABLE IS IF I SAY I'M GOING TO DO SOMETHING AND I COMMIT TO IT THAT I COMMIT TO IT AND I DO IT.

THAT'S THE NUMBER ONE MEASURABLE TOOL OF LEADERSHIP.

REGARDLESS OF WHAT THE ISSUE IS WE STICK TO WHAT WE COMMIT TO.

AND I WANT TO MAKE SURE THAT I REITERATE MY 100% SUPPORT FOR THE TPID.

AND I WILL, TO COUNCILMAN PELAEZ'S POINT, ECHO THE SAME FACT.

MANY OF US ARE DOING HOMELESS WORK DAY IN AND DAY OUT.

YESTERDAY MY TEAM AND I WERE AT TEN HOMELESS ENCAMPMENTS YESTERDAY AND WE ENCOUNTERED A DOZEN HOMELESS PEOPLE AND WE WERE WORKING HARD.

THERE WAS COUNTLESS CITY DEPARTMENTS OUT THERE.

HAVEN FOR HOPE IS OUT THERE.

>> PEOPLE ARE ACTIVELY ENGAGED IN THIS.

AT THE END OF THE CONVERSATION, AT THE VERY LEAST, IT'S RISEN TO A POINT WHERE I'M GLAD -- IT'S OBVIOUS I THINK WE NEED TO HAVE MUCH FURTHER CONVERSATION ABOUT HOMELESSNESS, PERIOD, IT'S OBVIOUSLY FOR A TIME FOR HAVEN FOR HOPE RESET, THAT HAS ABSOLUTELY ZERO TO DO WITH THE T PID.

I WANT TO BE VERY CLEAR, YOU'RE A RESPECTED INDUSTRY.

TO HEAR A COLLEAGUE SAY YOU DON'T DO ENOUGH I THINK IS DISAP! ING, I'M HERE TO TELL YOU I

[02:20:02]

THINK YOU DO.

WE CAN ALL DO A LITTLE BIT BETTER IN TELLING THE STORY, BUT I THINK YOUR INDUSTRY PROVIDING RESOURCES, SERVICES, EMPLOYMENT OPPORTUNITIES, JOBS, YOU'RE DOING THE THINGS THAT THIS COUNCIL IS ATTEMPTING TO TRY TO CORRECT.

YOU'RE COMING AT IT FROM MULTIPLE AREAS.

THE PEOPLE YOU EMPLOY, WE REALLY DIDN'T TOUCH ON THAT CONVERSATION, THIS MONEY COMING IN BUILDING OPPORTUNITY AND BENEFITS, WE TALKED ABOUT IT A LITTLE BIT, BUT YOUR ABILITY -- I THINK IT'S ADMIRABLE THAT YOU'RE TAXING YOURSELF.

YOUR COMING ASKING TO RAISE ADDITIONAL FUNDS, TO MAKE YOUR BUSINESS MODEL, YOUR MARGINS JUST A LITTLE TIGHTER, MAYBE, JUST TO SAY I'VE GO T TO CHARGE A LITTLE BIT MORE SO I CAN GET A LITTLE BIT OF PROFITABILITY, SO I CAN TURN TURN AROUND AND REINVESTS THAT IN VISIT SAN ANTONIO IN THE HOPES OF DRAWING MORE INCOME AND OPPORTUNITY.

A COUPLE COUPLE COMMENTS THAT WE MADE, WHAT'S THE MINIMUM I NEED TO DO TO BE COMPETITIVE.

WHAT'S THE TINIEST AMOUNT AT COMPETITIVE AND THEN I CAN STOP RIGHT THERE.

I DON'T HEAR ANY -- TO USE A SPORTS ANALOGY, I DON'T HEAR ANY TEAM COMING IN, I'VE GOT TO SCORE 12.

IF THEY AVERAGE 11, I'VE GOT TO SCORE 12.

IF YOU GET IN THE GAME, WE HAVE THE RESOURCES AND OPPORTUNITIES WE NEED TO PUT DALLAS, FORT WORTH, THESE CITIES AWAY WITH THE INVESTMENT.

THE MINIMUM COMPETITIVENESS IS NOT WHAT I'M LOOKING FOR.

I HOPE YOU D GRAB AS MUCH CASH AS YOU CAN.

AND INVEST IT.

IT'S NOT ABOUT BEING COMPETITIVE, YOU NEED TO WIN.

IT'S ABOUT PUTTING A PRODUCT ON THE MARKET THAT ENHANCES THE TOURISM AND VISITOR RELATIONSHIP IN SAN ANTONIO, PERIOD.

RIGHT? IT'S THE TOP INDUSTRY WE'RE CARRYING.

WE TALK ALL ABOUT THE THINGS WE DO DOWNTOWN, AND I WILL AGREE AS WELL, I'M NOT GOING TO SAY IT'S A TAKEN FOR GRANTED INDUSTRY, BUT IT'S PRETTY CLOSE.

SO I THINK FOR WHAT WE'RE TRYING TO DO TOMORROW, I THINK A LOT OF THAT MATTERS.

AND THE TRUTH IS, I ALSO SEE THIS AND I LOOK AT THE TIMING PIECE OF IT, MY COLLEAGUE QUOTED YOU IN THE MEDIA, I WOULD JUST CALL ATTENTION TO THE FACT THAT MY COLLEAGUE ALSO SAID IN THE MEDIA HE DIDN'T WANT TO BRING THIS UP BECAUSE OF AN ELECTION IN NOVEMBER.

WELL, MAYBE IT'S A LITTLE BIT MORE THAN, YOU KNOW, YOU NOT DOING ENOUGH TO HELP.

IF HOMELESSNESS MATTERS, IT'S A YEAR-ROUND CONVERSATION, IT'S NOT JUST HAD AFTER AN ELECTION CYCLE, SO THERE ARE MOTIVES THAT ARE GOING ON HERE THAT ARE BEYOND JUST ATTEMPTING TO AID THE HOMELESSNESS INITIATIVE.

SOMEBODY SEES A POT OF MONEY AND THEY WANT TO TAKE A PIECE OF IT TO FUND A PROJECT, I RESPECT THAT, THAT'S FINE.

BUT THE TIMING MATTERS.

WE'VE HAD A YEAR TO HAVE THIS CONVERSATION.

I DON'T EVEN KNOW HOW THIS ENDED UP ON A B SESSION FRANKLY, COUNCILMAN PERRY AND I HAVE ATTEMPTED TO GET ITEMS ON B SESSION AND WE CAN'T SEEM TO GET IT DONE.

HE WANTED TO TALK ABOUT THE CITY HALL REDESIGN, IT DIDN'T HAPPEN.

BUT THIS MIRACULOUSLY FINDS ITSELF ON A B SESSION JUST TRIER TO THE VOTE SO WE CAN HAVE THIS CONVERSATION, THAT'S AN ISSUE FOR ANOTHER TIME.

THIS WAS A DONE, PUT TO BED, FINISHED ARGUMENT, AND I THINK WE NEED TO OWN OUR PIECES HERE.

SO MY NOTES REAL QUICK, BECAUSE THERE ARE JUST SO MANY, TOURISM IS CONTRIBUTING GREATLY TO THE DOWNTOWN, THANK YOU FOR THAT.

I APPRECIATE IT.

WE NEED TO PARTNER WITH BUSINESS, DON'T DEMAND THESE CHANGES, AND I THINK WHEN WE COME IN AND WE SAY -- WE TRY TO SHAME SOMEONE INTO DOING MORE, THAT'S NOT A RELATIONSHIP, AND THAT'S WHEN THE WORD IS WHY DOES THE HOTEL INDUSTRY DYS -- DISTRUST CITY COUNCIL.

AND YOUR RESPONSE IS, WE DON'T DISTRUST CITY COUNCIL.

THE FACT IS, THIS IS EXACTLY WHY THERE'S TRUST ISSUES AT CITY HALL, COMING IN AT THE LAST MINUTE AND ATTEMPTING TO UNDO OUR COMMITMENTS.

I THINK YOURSELF-ASSESSMENT, YOUR PIECE OF WHAT YOU'RE GOING TO DO WITH THE MONEY, I LIKE THAT MIX AND WHERE THE PERCENTAGES AND THE MONIES ARE GOING, I HOPE THAT SEES THROUGH.

YOU'RE CHARGING YOURSELVES, WHICH I THINK IS ADMIRABLE, PUT THE MONEY IN THE RIGHT PLACE WHERE IT MATTERS, MAKE THE GOOD DECISIONS.

AS FOR THE FUNDING MECHANISMS, YOU KNOW, I WOULD JUST ASK, YOU KNOW, OF THE CITY STAFF, I MEAN, WHEN THE RECOMMENDATIONS CAME OUT, WHY WAS THERE A RECOMMENDATION JUST TO NOT DO ANYTHING? I DON'T UNDERSTAND WHY WE HAD TO -- LIKE, FOR INSTANCE, IT SAID WE COULD TAKE THE 3 MILLION FROM THE TPID.

THAT WAS ONE OPTION.

ANOTHER OPTION WAS -- I BELIEVE, HOLD ON A SECOND HERE, LET ME GET IT ACCURATE.

THE OTHER OPTION WAS THE DOWNTOWN IMPROVEMENT DISTRICT, AND THEN, OH, INCREASING THE GENERAL -- OR TAKING IT FROM THE GENERAL FUND.

I MEAN, JUST 60 DAYS AGO WHEN WE HAD -- IF HOMELESSNESS MATTERED, WE SHOULD HAVE HAD THIS DISCUSSION DURING THE BUDGET CYCLE, BUT WE DIDN'T.

SO AN INCREASE IN GENERAL FUNDS, I MEAN, AT THE END OF THAT BUDGET CYCLE LAST YEAR, WE DIDN'T HAVE ANY MONEY, WE WERE FIGHTING OVER A HALF A MILLION DOLLARS AT THIS TABLE AND APPARENTLY WE CAN CREATE $3 MILLION OUT OF THIN AIR TO GET THAT WORKED.

[02:25:01]

I WOULD ALSO LIKE TO WONDER WHY WE'RE NOT HAVING AN OPTION OF LET'S NOT DO ANYTHING RIGHT NOW.

MAYBE THIS ISN'T THE RIGHT OPTION OR THE RIGHT TIME FOR IT.

I'M NOT IN SUPPORT OF ANY OF THESE FUNDING OPTIONS FOR IT.

WE NEED TO REEXAMINE EXACTLY WHERE WE SHOULD BE SPENDING THE MONEY AND WHERE IT'S GOING TO COME FROM, SO...

YEAH, AND REALLY, JUST, LOOK, AT THE END OF THE DAY, AND JUST A TON OF NOTES.

I WAS WRITING SO MUCH DURING MY COLLEAGUE'S COMMENTS, AT THE END OF THE DAY, WHEN I LOOK AT THIS, CAN'T STAY SILENT ON THE ISSUE THE WHOLE WAY THROUGH.

WE NEED TO -- IF WE'RE GOING TO BELIEVE IN THIS, WE'VE GOT TO COME OUT AT IT AND WE'VE GOT TO HAVE THE ARGUMENT, AND I HOPE WE DO, WHETHER OR NOT GET INVOLVED WHERE THEY PUT MORE CASH IN IT.

I THINK WE HAVE TO ALSO ASK, IS THAT THE RIGHT PLACE WHERE WE PUT THE MONEY, AND THAT'S A REDESIGN AND PROBABLY A REVISIT OF WHAT HAVEN FOR HOPE IS IN ITS ENTIRETY AND WE NEED TO HAVE THAT, AND PROBABLY NEED TO HAVE IT A LOT SOONER RATHER THAN LATER.

I THINK WE NEED TO BE FAIR WITH THE CONVERSATION AND REALIZE THAT CASH AND MONEY IS IMPORTANT AND NEEDS TO GO PLACES.

I WOULD RECOMMEND, JUST OFF THE TOP OF MY HEAD HERE, THAT 3 MILLION BUCKS RG LET'S CUSS IT -- CUT IT FROM THE MAYOR'S HOUSING TASK FORCE.

IT'S A HOUSING TASK FORCE, WHAT BETTER HOUSING INITIATIVE THAN TO PUT A HOMELESS PERSON IN A HOUSE.

YOU CAN GENERATE $3 MILLION FROM THAT TOMORROW AND NOT HURT A ONE OF US AND NOT HAVE TO PULL ANY OF THIS CASH OUT FROM ANYWHERE ELSE.

THERE ARE MULTIPLE AVENUES FOR US TO FUND THE MONEY.

I THINK TOMORROW IS AN OPPORTUNITY TO PASS A GOOD PIECE OF LEGISLATION, TO PARTNER WITH THE TOURISM INDUSTRY, TO BE THANKFUL FOR THE RELATIONSHIP, DRIVE FORWARD TO BRING BUSINESS TO SAN ANTONIO AND LET'S DO THAT GOING FORWARD MAKING US THE BEST TOURISM DESTINATION NOT JUST FROM THE STATE BUT AROUND THE GLOBE HERE.

I WANT TO THANK YOU FOR THE GOOD WORK. IT'S MUCH APPRECIATED, AND I HOPE YOU WALK OUT OF HERE KNOWING THAT PEOPLE HERE REALIZE EXACTLY WHAT YOU'RE DOING.

WE'RE VERY THANKFUL FOR IT.

FOR EVERYBODY THAT CAME TO SUPPORT THIS AS WELL, I LOOK FORWARD TO THIS PASSAGE TOMORROW MOVING FORWARD.

I WOULD ASK THAT WE REALLY TAKE A HARD SELF-EXAMINATION OF WHERE WE CAN GET THE MONEY FROM AND LET'S GET IT FROM WHERE IT REALLY MATTERS.

THANK YOU, MAYOR.

MAYOR NIRENBERG THANK YOU, COUNCILMAN BROCK HOUSE.

COUNCILMAN PERRY.

PEREZ --

>> PERRY: I JUST HAVE A COUPLE QUESTIONS.

IS THERE ANYTHING DIFFERENT IN THIS PACKAGE FROM WHAT WE SAW ORIGINALLY?

>> NO, SIR.

>> PERRY: ANYTHING AT ALL?

>> NO, SIR.

>> PERRY: SO WE VOTED ON THIS, IT SAYS HERE ON JUNE 21ST.

>> CORRECT.

>> PERRY: WAS IT UNANIMOUS?

>> IN CONCEPT, YES.

>> PERRY: OKAY.

ALL RIGHT.

SO GETTING TO COUNCILMAN'SBROCKHOUSE'S COMMENT, HOW DID THIS GET ON THE B SESSION, WHO PUT IT ON THE B SESSION? SCULZ.

>> SCULLY:

>> PERRY: OPEN THE DOOR ABOUT THIS HOMELESSNESS THING, ABOUT SOLVING HOMELESSNESS.

YOU KNOW, WE'RE NEVER GOING TO SOLVE HOMELESSNESS, THAT'S BEEN HERE SINCE THE BEGINNING OF TIME THROUGHOUT THE WORLD.

HOW MUCH MONEY ARE WE SPENDING ON HOMELESSNESS TODAY? MELODY --

>> SCULLEY: APPROXIMATELY -- JUST IN THE INTEREST OF TIME, SIR, APPROXIMATELY 8 MILLION.

AND THAT'S TO HAVEN HAVEN FOR HS WELL AS THE AGENCIES THAT PROVIDE HOMELESSNESS SERVICES.

>> PERRY: HOW MUCH TOTAL FEDERAL, STATE AND LOCAL INVESTMENTS IN SAN ANTONIO AND BEXAR COUNTY IS THERE ON HOMELESSNESS?

>> SCULLEY: 55 MILLION.

>> PERRY: OKAY.

>> SCULLEY: ACCORDING TO MARIA VILLAGOMEZ SITTING BEHIND ME.

>> PERRY: OKAY.

SO HERE WE HAVE 55 MILLION, YOU KNOW, IN DIRECT DOLLARS, HOW MUCH TOTAL NONGOVERNMENTAL FUNDS ARE GOING TOWARDS THE HOMELESSNESS POPULATION?

>> SCULLEY: I DON'T KNOW THAT WE HAVE THAT, BECAUSE THERE ARE MANY OF THE SAME AGENCIES FUNDED

[02:30:02]

THROUGH UNITED WAY.

I GAVE YOU NUMBERS A FEW MINUTES AGO JUST WITH REGARD TO THE HAVEN FOR HOPE BUDGET.

YEAH, MARIA SAID, IF YOU HAVE OTHER FINANCIAL -- 34 MILLION.

>> PERRY: OKAY.

>> SCULLEY: PRIVATE SECTOR DOLLARS TOWARD HOMELESSNESS IN THE COMMUNITY.

>> PERRY: SO WE HAVE A TOTAL FEDERAL, STATE AND LOCAL INVESTMENT OF $55 MILLION, NONGOVERNMENTAL DOLLARS IS $33 MILLION.

SO THAT'S A TOTAL OF $88 MILLION.

WHAT WAS OUR LAST POINT IN TIME COUNT, MELODY? OUR LAST POINT IN TIME COUNT FOR A POPULATION OF HOMELESSNESS HERE IN SAN ANTONIO?

>>

>> PERRY: 3,066.

OUR POINT IN TIME, COUNT.

OKAY.

SO, YOU KNOW, THAT'S A PRETTY SUBSTANTIAL INVESTMENT IN HOMELESSNESS ALREADY.

AND HAVEN FOR HOPE IS ONE PART OF THAT TOTAL INVESTMENT.

AGAIN, I LOOK AT THAT AND SAY, ARE WE GOING TO SOLVE HOMELESSNESS HERE? PROBABLY NOT, BUT WHAT IS ENOUGH DOLLARS TO THIS PROBLEM HERE IN SAN ANTONIO FOR US TO RAISE THE ISSUE OR TRY TO TAKE CARE OF IT? $88 MILLION IS A LOT OF MONEY.

YOU DO THE MATH, THAT'S ABOUT $27,000 A PERSON PER YEAR THAT WE'RE GIVING TO THIS PROBLEM.

I TOTALLY UNDERSTAND PEOPLE BEING DOWN ON THEIR LUCK.

I STARTED A TASK FORCE IN DISTRICT 10, WE'VE WORKED ON IT, WE ACTUALLY GOT A HOMELESS COORDINATOR TO COORDINATE OUR EFFORTS, PAID FOR IT WITH CITY FUNDS, Y'ALL SUPPORTED ME ON THAT.

AND WE'RE GOING TO BE USING THAT PERSON TO GO OUT THERE AND FOCUS OUR EFFORTS, WHETHER IT'S FEDERAL, STATE, LOCAL OR NONGOVERNMENTAL AGENCIES TO FOCUS IN ON THE HOMELESSNESS PROBLEM IN DISTRICT 10.

AND I'LL LET Y'ALL KNOW HOW THAT GOES, AND IF IT DOESN'T WORK, WE'RE NOT GOING TO KEEP -- WE'RE NOT GOING TO KEEP DOING THAT.

BUT THAT'S A RESOURCE THAT I ASKED FOR, Y'ALL SUPPORTED ME ON THAT, AND WE'RE GOING TO USE IT AND SEE HOW IT GOES, AND I'LL LET YOU KNOW HOW IT GOES.

BUT, AGAIN, IS THIS -- THE QUESTION WAS, IS THIS IDEA TERRIBLE? WELL, I CAN SAY YES, BECAUSE WE HAVE WORKED TWO YEARS ON THIS AND GOT TOTAL AGREEMENT, AND IF I WAS A HOTELIERE HERE IN TOWN AND YOU CHANGED THE DEAL ON ME, AND SAY, NO, WE'RE GOING TO RAKE OFF SOME OF THAT FUNDS FOR ANOTHER PROGRAM, I'D SAY NOT ONLY NO, BUT HELL NO AM I GOING TO SUPPORT THAT FROM THEN ON.

SO I'VE GOT A PROBLEM WITH US GOING BACK ON WHAT WE'VE ALREADY BEEN BRIEFED, BEEN WORKING FOR FOR TWO YEARS, AND WE'RE AT THIS POINT, WE'RE SUPPOSED TO VOTE ON IT TOMORROW.

I'VE GOT A PROBLEM WITH IT COMING BACK TO B SESSION AGAIN, BUT THAT'S A WHOLE DIFFERENT STORY.

YOU KNOW, I'M READY TO VOTE, I'M READY TO SUPPORT THIS.

MY SUPPORT WAS CONTINGENT ON A GOOD MEASUREMENT SYSTEM, ON A RETURN ON INVESTMENT, AND I'M LOOKING FORWARD TO THE VOTE TOMORROW.

BUT, YOU KNOW, HOW MUCH MONEY IS ENOUGH? THAT'S ALL I HAVE, SIR.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.

COUNCILWOMAN GONZALES?

>> GONZALES: THANK YOU, AND I DON'T HAVE ANY QUESTIONS, BUT IT LOOKS LIKE WE'RE MAKING OUR COMMENTS TODAY, SO TOMORROW WE CAN JUST VOTE.

SO I'LL TAKE THE OPPORTUNITY TO DO THAT.

AND I JUST -- I WANT TO ALSO THEN TAKE THE MOMENT TO PERSONALLY THANK BILL GREEHEY FOR ALL HIS GENEROSITY IN THE CITY, BECAUSE IT'S REALLY IMPORTANT TO NOTE THAT THE WHOLE CITY DOES BENEFIT FROM A PLACE LIKE HAVEN, NOT JUST THE DOWNTOWN, NOT JUST THE AREA SURROUNDING, BUT THE WHOLE CITY.

BECAUSE WE DO HAVE THIS SERVICE AVAILABLE THAT ALMOST NO OTHER CITY HAS IN THE COUNTRY, OR AT LEAST WE WERE THE FIRST TO START THIS KIND OF PROGRAM.

I AM CONCERNED ABOUT THE LONG-TERM VIABILITY OF THIS KIND OF A PROGRAM, AND I KNOW THE MAYOR MENTIONED IN HIS REMARKS THAT WE WOULD HAVE SOME FOLLOW-UP WITH THAT, BUT I WOULD EVEN BE CURIOUS IN, YOU KNOW, 2007 WHEN THIS WAS DEVELOPED, WHAT WAS THE -- I'M SURE THAT THERE WERE SOME IDEAS ABOUT HOW IT WOULD CONTINUE TO GET FUNDED, HOW MANY PEOPLE YOU WOULD SERVE, WHAT THE ULTIMATE OUTCOME WOULD BE.

AND, YOU KNOW, PERHAPS A MODEL FOR HOW WE DEAL WITH HOMELESSNESS ALSO HAS CHANGED SINCE THAT STARTED, BECAUSE WE KNOW THAT 2007, NOW 12 YEARS LATER, PERHAPS IT'S JUST NOT THE RIGHT SOLUTION SINCE WE SEEM TO

[02:35:02]

BE HAVING A CONVERSATION ABOUT HOMELESSNESS AND NOT NECESSARILY ABOUT THE TPID.

BUT I DO THINK THAT AS WE HAVE A FURTHER DISCUSSION ABOUT THIS, ABOUT HOW WE DEVELOP RESOURCES, WE HAVE TO CONSIDER THAT IT'S THE WHOLE CITY'S PROBLEM, NOT ONE INDUSTRY, NOT DOWNTOWN.

DOWNTOWN CARRIES THE TAX BURDEN FOR ALMOST THE ENTIRE CITY.

WE'VE SEEN THAT IN NUMEROUS REPORTS ALREADY, THAT IT'S THE DOWNTOWN AND THE NEAR DOWNTOWN NEIGHBORHOODS THAT SUPPORT THE REST OF THE CITY WITH THEIR TAX DOLLARS AND WITH THEIR INVESTMENTS.

AND I ALSO THINK IT'S CURIOUS THAT WE JUST -- YOU KNOW, EARLY ON HAD THE -- THIS SURVEY ABOUT PEOPLE AND HOW MUCH THEY LOVE THEIR CITY.

AND THAT WAS THE FIRST THING THAT PEOPLE TALKED ABOUT WAS WHAT A GREAT CITY WE HAVE, AND IT'S BECAUSE OF STUFF LIKE PUBLIC SAFETY, STUFF THAT, YOU KNOW, WE HAVE A RESPONSIVE GOVERNMENT, ALL THOSE THING, AND IT'S REALLY BECAUSE WE HAVE A PLACE LIKE HAVEN TO -- WHERE THERE -- THE HOMELESSNESS CAN COME AND GET SUPPORT.

AND SO THEY REALLY ARE SORT OF RELEVANT, I THINK IT'S REALLY BECAUSE OF THE INDUSTRIES LIKE THE HOTEL INDUSTRY, RESTAURANTS, QUALITY OF LIFE, WHY PEOPLE LOVE THIS CITY BECAUSE IT'S OPPORTUNITY AND IT IS ONE OF THE WAYS THAT PEOPLE PROMOTE AND GET BETTER JOBS.

AND I THINK IT'S TRUE, THE INDUSTRY HAS NOT DONE A VERY GOOD JOB OF PROMOTING ITSELF, SO WE LOOK FORWARD TO SOME OF THOSE STATISTICS IN THE FUTURE.

MANY PEOPLE THAT HAVE STARTED THEIR CAREERS IN INDUSTRIES LIKE THE HOTEL ENTERTAINMENT RESTAURANT BUSINESS, SO WE'LL LOOK FORWARD TO ALL THAT, BUT I DO JUST -- AS WE PROGRESS WITH HOW WE CONTINUE TO FUND HOMELESSNESS, TO CONSIDER AN OPTION BEYOND A SINGLE SOURCE LOCATION, I WOULD GO ON TO SAY AS MUCH AS I AM GRATEFUL FOR THE SERVICES THEY PROVIDE, I THINK THE ONE PART OF THE CITY THAT HAS NOT BENEFITED IN TREMENDOUS WAYS FROM A SHELTER LIKE HAVEN FOR HOPE IS THE PROSPECT HILL NEIGHBORHOOD WHERE I LIVE, BECAUSE THAT IS WHERE THE CENTRAL LOCATION FOR EVERYTHING IS.

AND I THINK THAT IT'S POSSIBLE, IT'S HARD TO NOW THEN PROJECT LONG-TERM IN THE FUTURE, BUT PERHAPS THERE COULD HAVE BEEN A MORE BEST USE OF THAT PROPERTY IN THE NEAR DOWNTOWN THAN A 20-PLUS CAMPUS HOMELESSNESS SHELTER.

SO WE'LL LOOK FORWARD TO HOW THOSE CONVERSATIONS EVOLVE OVER THE NEXT COUPLE OF MONTHS, AND ALSO HOW WE CONTINUE TO SUPPORT.

YOU KNOW, UNLIKE MY COUNCIL COLLEAGUE, COUNCILMAN PERRY, I DO THINK IT'S A WORTHY INVESTMENT TO HELP PEOPLE THAT ARE OUR MOST VULNERABLE, AND WE CAN'T JUST TURN OUR BACKS AND SAY WELL HOW MUCH IS TOO MUCH.

I THINK THE VERY, VERY MOST THAT WE CAN SPREAD OUT EVENLY THROUGHOUT THE CITY AND NOT IN JUST ONE INDUSTRY OR ONE BUSINESS OR ONE AREA OF TOWN.

SO THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES.

COUNCILMAN TREVINO?

>> TREVINO: THANK YOU, MAYOR.

I'LL START OFF BY SAYING, YOU KNOW, I'M CERTAINLY SUPPORTIVE OF THE TPID, AND I WANT TO THANK ALL THE HARD WORK THAT HAS GONE INTO MAKING THIS HAPPEN.

YOU KNOW, LISA, CASSANDRA, YOU KNOW, YOU GUYS, I KNOW YOU GUYS WORKED VERY, VERY HARD ON THIS, AND I WANT TO SAY, I CERTAINLY RESPECT WHAT YOU GUYS HAVE DONE AND HOW YOU'VE ORGANIZED THIS, AND YOU HAVE MET WITH ME SEVERAL TIMES.

AND I THINK YOU'RE WELL RESPECTED FROM EVERYBODY HERE ON THIS COUNCIL, AND JUST WANT TO SAY THANK YOU FOR BRINGING THIS ISSUE.

IT'S CRITICAL TO POINT OUT, THOUGH, THAT I DO BELIEVE THAT WHAT COUNCILMAN SALDAÑA IS BRINGING UP IS NOT JUST A SUBJECT THAT IS TIMELY, BUT A SUBJECT THAT I THINK IS INCREDIBLY COMPLEX.

SO, NUMBER ONE, THANK YOU, COUNCILMAN SALDAÑA.

A LOT OF RESPECT FOR YOU, YOU SHOW A LOT OF GUTS ON THIS COUNCIL.

WITH THAT, I JUST WANT TO POINT OUT THAT I THINK WHAT MY COUNCIL COLLEAGUE WAS DRIVING AT WAS ASKING QUESTIONS, BECAUSE THAT'S WHAT WE ARE SUPPOSED TO DO AS COUNCILMEMBERS, IS SAY, WELL, OKAY, I UNDERSTAND THAT SOMETHING MAY BE SET UP A CERTAIN WAY, BUT IS THERE A WAY, RIGHT? AND SO THE FIRST THING WE HAVE TO UNDERSTAND IS THAT HE'S ASKING ON BEHALF OF THE MOST

[02:40:01]

VULNERABLE POPULATION IN OUR COMMUNITY, AND I THINK THAT IS -- WHEN HE SAYS MY CONSTITUENTS, THAT'S ALL OUR CONSTITUENTS, BY THE WAY.

AND SO FOR ME, I THINK THAT THERE -- THERE HOPEFULLY CAN BE SOME KIND OF A COMPROMISE OR BRIDGE THAT HELPS US TO ADDRESS SOME OF THE TOUGHEST ISSUES.

AND, YOU KNOW, SOME ISSUES HAVE NO FINISH LINE.

THERE JUST ISN'T A FINISH LINE.

BUT THAT DOESN'T MEAN YOU DON'T DO ANYTHING.

THAT DOESN'T MEAN YOU DON'T TRY OR CARE ABOUT IT.

AND SO, YOU KNOW, IN FACT SOME OF THE BIGGEST ISSUES ARE JUST THAT, AND THOSE ARE THE ONES WE SHOULD REALLY TRY THE HARDEST.

AND SO IN ASKING ABOUT THE TPID, WE UNDERSTOOD THAT IT'S SET UP A CERTAIN WAY, AND THEREFORE THE WAY THE LANGUAGE IS WRITTEN, THERE IS -- THERE IS NO OPPORTUNITY AS THE COUNCILMAN REQUESTED FOR THERE TO BE AN ADJUSTMENT IN THAT LANGUAGE; HOWEVER, WE ALSO WANT TO SAY, WELL, -- YOU KNOW, I HEARD THE MAYOR SAY WHEN WE CONVERTED THE VCC TO VSA, THAT WAS A HARD CONVERSATION, THAT WAS A DIFFICULT CONVERSATION BECAUSE ULTIMATELY IT WAS ABOUT HOW DO WE REMAIN PARTNERS, RIGHT? HOW DO WE REMAIN -- HOW DO WE MAINTAIN THIS PARTNERSHIP IN A WAY THAT WE FEEL GOOD ABOUT HOW VSA WILL DO WHAT IT'S SUPPOSED TO DO, WHICH IS TO GO BECOME MORE COMPETITIVE AND ALSO BE A GOOD PARTNER TO OUR CITY, RIGHT? PARTNER WITH US, CITY COUNCIL AND AS YOU HEARD, THERE'S A LOT OF US, QUITE A FEW OF US THAT SIT ON THAT BOARD FOR THAT VERY REASON.

AND, BEN, I HEARD YOU SAY -- SO MAYBE, BEN, CAN YOU GO UP THERE FOR A MINUTE? YOU -- I WROTE DOWN WHAT YOU SAID.

YOU KNOW, WHEN IT COMES TO VSA FUNDING, RIGHT, EXPLAIN TO US HOW WE LOOK AT THAT AND THE DIFFERENT COMPONENTS OF THAT, BECAUSE YOU SAID THAT THERE'S SOME FLEXIBILITY IN SPENDING DEPENDING ON, YOU KNOW, EMERGENCIES OR, YOU KNOW, WHAT THE CITY MIGHT NEED.

EXPLAIN THAT A LITTLE BIT MORE.

>> GORZELL: SO UNDER THE DOCUMENT OR THE RESOLUTION THAT BECAME PART OF THE BOND DOCUMENTS WHEN WE DID THE CONVENTION CENTER FINANCING IN 2012, WE OUTLINED THE POLICY THAT TALKED ABOUT HOW WE WOULD UTILIZE HOT REVENUES.

AND THEY GO TO FUND CONVENTION FACILITIES, THE 15% TOWARDS THE ARTS, 15% TOWARDS PRESERVATION.

THAT IS DONE AFTER WE TAKE WHATEVER WE NEED FOR DEBT SERVICES OUT OF THE HOT REVENUES TO PAY FOR DEBT, THAT ALLOCATION IS THEN DISTRIBUTED AMONG THOSE DIFFERENT GROUPS.

WITH VSA, IT'S A DESIGNATED 35%, BUT IT'S SUBJECT TO ECONOMIC -- WE CAN ADJUST IT FOR THINGS LIKE AN ECONOMIC DOWNTURN, SO WE HAVE TO MAINTAIN THE FLEXIBILITY SO WE DON'T PUT OURSELVES IN A POSITION WHERE WE'VE GOT TO MAKE DEBT PAYMENTS, WE'VE GOT TO MAKE A MAXIMUM CONTRIBUTION OF THE 35% DESIGNATION TO VSA AND DEBT SERVICES ARE CLIMBING WHILE ECONOMIC IS FALLING.

>> TREVINO: THANKS, BEN.

THANK YOU, BEN.

AND PART OF THIS DISCUSSION, YOU KNOW, I WANTED TO GIVE MY COUNCIL COLLEAGUE THE TIME TO EXPLAIN EXACTLY, YOU KNOW, WHAT WAS HIS GOAL ON THIS, AND, AGAIN, I ABSOLUTELY RESPECT WHAT HE'S GOING AFTER.

IN PART OF THIS DISCUSSION, I CONTACTED THE CITY ATTORNEY'S OFFICE, RIGHT, AND SO WHAT YOU JUST HEARD IS PART OF WHAT I CAN HOPE MAY BE A COMPROMISE.

AND I'M PUTTING THIS -- IN AUDIO] -- SAY THAT IT TOO LATE TO BE TALKING ABOUT SOMETHING.

WE SHOULD ALWAYS -- IN FACT, THIS IS THE ONE THING THAT COUNCILMAN SALDAÑA SAID THAT WAS SO CRITICAL AS AN ELECTED REPRESENTATIVE, YOU'RE THE VOICE.

AND SO IT SHOULDN'T MATTER WHEN YOU BRING IT UP, THE FACT THAT YOU BRING IT UP IS WHAT'S MOST IMPORTANT.

AND SO HERE WE ARE TALKING ABOUT SOMETHING THAT I THINK WE ALL TAKE VERY SERIOUSLY, AND I RESPECT EVERY ONE OF MY COLLEAGUES FOR THEIR VIEWPOINTS AND HOW THEY ARE TACKLING IT.

BUT I ALSO WANT TO FIND SOME KIND OF A RESOLUTION OR SOLUTION OR EVEN A PATH FORWARD, BECAUSE

[02:45:09]

BIG CHALLENGES LIKE THIS, THEY'RE ALSO GOING TO REQUIRE VERY COMPREHENSIVE EFFORT.

AND WHAT REALLY BOTHERS ME MOST OF THE TIME WHEN WE HAVE BIG ISSUES IS THAT WE WAIT AROUND OR WE DON'T THINK OF THE TIMELINE, THAT SOMEHOW WE'RE GOING TO GET TO IT SUNDAY, OR THERE'S GOING TO BE A TASK FORCE THAT WILL GET TO IT.

YOU KNOW, I THINK -- I THINK THE POINT OF THIS IS TO SAY, LET'S STOP TALKING AND START DOING.

AND EVEN IF IT'S A LITTLE BIT, EVEN IF IT'S INCREMENTAL, I THINK IT'S A BIG DEAL.

SO I'D LIKE FOR US TO HAVE AN OPPORTUNITY TO BRING THIS -- THESE DISCUSSIONS THAT WE'VE HAD WITH THE CITY ATTORNEY'S OFFICE ABOUT HOW WE COULD STRUCTURE SOMETHING THAT SHOWS THAT WE ARE GOING TO FIND WAYS TO INCREMENTALLY CONTRIBUTE TO SUCH AN IMPORTANT ISSUE, SUCH A BIG ISSUE.

YOU KNOW, I WON'T OUTLINE ALL OF IT, BECAUSE WE'RE ALREADY GETTING CLOSE TO PAST 5:00, BUT I'LL ASK THAT THE CITY ATTORNEY'S OFFICE SHARE THAT INFORMATION.

THESE ARE SOME OPTIONS.

I'VE SPOKEN WITH COUNCILMAN SALDAÑA ABOUT THIS.

I THINK I IT'S A BRIDGE AND A STEP FORWARD TOWARDS A POTENTIAL RESOLUTION TOWARDS HOW EVERYBODY'S WILLING TO PITCH IN.

AND BY THE WAY, I'LL SAY THIS: CASSANDRA AND LISA, THEY'VE ALSO SAID THE SAME THING.

THEY WANT TO BE HELPFUL.

SO THE POINT OF THIS ENTIRE RESOLUTION IS CONCEPTUALLY HUGH HUGH -- HOW DO WE ACHIEVE SOME KIND OF INCREMENTAL APPROACH SO THAT WE CAN PITCH IN AS WE'RE DEVELOPING REVENUE MODELS THAT SHOW THERE'S OPPORTUNITY TO RAISE MONEY.

I SAY THAT BECAUSE, AGAIN, I'M SUPPORTIVE OF THE TPID AND I THINK THEY'RE GOING TO BE VERY SUCCESSFUL IN RAISING THE $10.42 MILLION AND BEYOND.

YOU KNOW, WE AS A CITY ARE LOOKING AT -- EVERY YEAR WE'RE CONTRIBUTING $24 MILLION, AND THAT WILL GROW HOPEFULLY.

BUT WHAT DOES THAT MEAN IN TERMS OF GOING NORTH OF THAT AND HOW -- YOU KNOW, HOW WE CAN BET ON OUR SUCCESS AND SAY, LET'S CONTRIBUTE SOME KIND OF INCREMENT TOWARDS THIS ISSUE, BECAUSE NO ONE INDUSTRY OR NO ONE PERSON SHOULD BEAR THE ENTIRE BURDEN.

NOW, THIS IS WHERE I AGREE WITH CASSANDRA AND LISA, IT SHOULDN'T BE ALL ON THEM, BUT I DO THINK THAT WE ALL NEED TO PITCH IN SOMEHOW, AND WE NEED TO FIND SOME CREATIVE RESOLUTIONS, SO, AGAIN, WITHOUT ANY CREATIVE RESOLUTIONS COMING FORWARD, YOU KNOW, I WILL ADVOCATE FOR A FEW THAT I THINK MAY OR MAY NOT WORK.

SO I WILL ASK THAT THE CITY ATTORNEY'S OFFICE SHARE SOME OF THAT CONCEPTUAL RESOLUTION.

>> IF I MAY, COUNCILMAN, WE'D BE HAPPY TO DO THAT, ASK THE CITY MANAGER AND HER STAFF TO COME UP WITH SOME OF THE SOLUTIONS THAT YOU TALKED ABOUT.

SO WE'D LIKE TO WORK WITH BEN AND MARIA AND CARLOS IN TERMS OF COMING UP WITH SOLUTIONS THAT WORK COLLECTIVELY TO THE CITY AND THEN WE'D PRESENT THOSE TO THE STAFF.

>> TREVINO: ANDY, I UNDERSTAND, BUT I'M TALKING SPECIFICALLY ABOUT THE ONE THAT I TALKED WITH RAY RODRIGUEZ ABOUT.

I WANT TO MAKE SURE THAT WE TALK ABOUT THAT ONE.

ON THE RECORD, I WANT TO MAKE SURE THAT WE DO TALK ABOUT SOME OF THE THINGS WE DISCUSSED WITH CITY ATTORNEY'S OFFICE, RAY RODRIGUEZ, COUNCILMAN SALDAÑA HAD SOME CONVERSATIONS AS WELL ABOUT THAT.

I THINK THIS COULD -- THIS IS AN IMPORTANT TOPIC THAT SHOULD BE DISCUSSED, AND I THINK IT'S CRITICAL THAT WE MAKE SURE THAT WE SHED SOME LIGHT ON SOME OF THOSE THINGS WE DISCOVERED.

>> SEGOVIA: WE'LL SHARE THAT, WE'LL REFINE IT.

BASED ON SOME OTHER INFORMATION WE GOT SOME OTHER DEPARTMENTS THAT WOULD HELP IN OF REFINING THAT IDEA IN A WAY THAT IT MAKES IT MORE FEASIBLE.

>> TREVINO: OKAY.

AND WHAT'S THE TIMING ON THAT?

>> SEGOVIA: I MEAN, THE MAYOR WANTED SOMETHING NEXT YEAR, BUT WE CAN -- WE CAN --

>> TREVINO: WILL IT TAKE UNTIL NEXT YEAR.

>> SEGOVIA: WE CAN BRIEF YOU ON OUR UPDATE.

>> MAYOR NIRENBERG: LET ME CLARIFY THAT.

WE HAVE ONE COUNCIL SESSION LEFT BEFORE THE END OF THE YEAR, SO I'D LIKE SOMETHING AS SOON AS POSSIBLE IN THE EARLY YEAR, BUT WE NEED TO CONVENE A DISCUSSION ABOUT HOMELESSNESS IN OUR SERVICE PLAN TO BEGIN WITH.

IF IT'S GOING TO BE A NEAR-TERM

[02:50:02]

SOLUTION FOR ANYTHING, WE NEED IT BEFORE THE MIDTERM REVIEW.

>> SEGOVIA: OKAY.

>> TREVINO: I JUST DON'T WANT TO LEAVE ANYTHING OUT HANGING, SO I MEAN, PLEASE LET'S -- AGAIN, I WANT TO GO BACK TO OUR TIMELINES AND HOW WE SHOULD BE TACKLING SOMETHING, SO LET'S PUT A DATE ON IT.

I JUST -- I DON'T KNOW WHAT NEXT YEAR MEANS, AND SO I'D LIKE TO HAVE FURTHER DISCUSSIONS ON THAT.

SO, AGAIN, I THINK THAT WE CAN TRY TO BRIDGE THAT GAP.

I HOPE THAT WE CAN FIND A COMPROMISE.

AGAIN, COUNCILMAN SALDAÑA, I THINK -- I APPLAUD YOU FOR YOUR EFFORT AND I THINK IT'S TIME THAT WE LOOK AT EVERY -- UNDER EVERY ROCK, UNDER EVERY OPPORTUNITY THAT WE HAVE TO HELP US FIND A WAY TO HELP OUR MOST VULNERABLE POPULATION, AND, YES, I MEAN, I AGREE, YOU KNOW, HAVEN FOR HOPE HAS BEEN AN INCREDIBLE MODEL FOR OUR ENTIRE CITY, AND AS SOMEBODY WHO HAS SPENT THE NIGHT THERE, I THINK, YOU KNOW, IT'S CRITICAL TO POINT OUT HOW -- HOW MANY PEOPLE BENEFIT FROM THOSE SERVICES AND WHAT IT WOULD MEAN -- WHAT A SERIOUS IMPACT IT WOULD HAVE ON OUR ENTIRE CITY TO NOT HAVE AN AMAZING PLACE LIKE HAVEN FOR HOPE.

SO THAT'S -- THAT'S THE END OF MY COMMENTS.

I THINK IT'S -- YOU KNOW, I JUST WANT TO MAKE SURE THAT WE HAVE THESE OPTIONS LAID OUT FOR US SO THAT WE CAN TALK ABOUT HOW WE CAN START TO INCREMENTALLY TACKLE THIS ISSUE.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN TREVINO.

COUNCILWOMAN VIAGRAN?

>> VIAGRAN: THANK YOU, LISA AND CASSANDRA AND BEN FOR ALL OF THE WORK THAT YOU ALL HAVE DONE ON THIS.

I WAS THERE AS A BOARD MEMBER, AN EXECUTIVE BOARD COMMITTEE MEMBER FOR VISIT SAN ANTONIO WHEN WE WERE PART OF THE SERVICE AGREEMENT, OR THE MANAGEMENT AGREEMENT DURING THE TRANSITION, AND I SAW HOW MUCH NEGOTIATION BETWEEN BEN AND CITY ATTORNEYS AND VISIT SAN ANTONIO THAT HAD TO HAPPEN AT THE BEGINNING, AT THE ONSET.

AND EVEN DURING THIS TPID CONVERSATION, THE BACK AND THE FORTH IN THE CONVERSATION.

FOR MY COUNCIL COLLEAGUES TO KNOW AS WELL, AS SITTING ON THE EXECUTIVE COMMITTEE OF THE BOARD OF VISIT SAN ANTONIO, CASSANDRA AND LISA ALWAYS ASKED ME WHAT DO WE NEED TO GO, WHAT DO WE NEED TO TALK TO? I TOLD THEM MULTIPLE TIMES THEY NEEDED TO MAKE THEIR ROUNDS WITH ALL OF THE COUNCILMEMBERS TO GET THEIR INPUT ON THE SERVICE AGREEMENT THAT WAS GOING TO GO BEFORE CITY COUNCIL TO VOTE IN JUNE.

MULTIPLE TIMES.

AND THEY WENT MULTIPLE TIMES.

SO THANK YOU FOR DOING THAT.

ANOTHER THING I WANTED TO POINT OUT IS I THINK, ONE, THAT YOU WERE ABLE TO GET 64.5% OF THE OWNERS ABOVE THE NEEDED PETITIONS FOR THIS, I THINK THAT -- WHAT THAT TELLS ME, LISA AND CASSANDRA, IS THAT THE HOTELIERS TRUST YOU AND TRUST VISIT SAN ANTONIO, THAT THEY'RE GOING TO HAVE TO DELIVER ON THIS.

THAT IS WHY YOU HAD 64.5% OF THEM TO SIGN ONTO THIS PETITION.

AND THAT WAS NOT AN EASY TASK, BECAUSE SOME OF THESE HOTELIERS ARE REALLY MEAN.

[LAUGHTER]

>> VIAGRAN: AND I THINK -- SO I THINK THAT YOU HAD SOMETHING UNANIMOUSLY AGREED TO BY THE CITY COUNCIL TO GO AND DELIVER TO THEM, AND IT WAS YOUR WORD, VISIT SAN ANTONIO'S WORD, WHICH IS ALSO MY WORD, SINCE I SIT ON THIS BOARD.

AND ALSO FOR MY COUNCIL COLLEAGUES, LOOKING AT THE TPID AND THE CONSTRUCTION AND WHAT THIS IS GOING TO DO AND EVERYONE ON THE BOARD, I'M ALSO -- I'M STILL ON THE EXECUTIVE COMMITTEE AND SITTING HERE LOOKING AT THE FINANCE COMMITTEE AS WELL.

SO WE WILL MAKE SURE THAT WE HAVE EXTRA EYES ON EVERYTHING AS THINGS MOVE FORWARD, THAT THIS -- THESE DOLLARS AMOUNT -- DOLLAR AMOUNTS ARE GOING TO BE PUT FORWARD WITH MARKETING AND OUTREACH FOR THE BENEFIT OF ALL SAN ANTONIO AND SAN ANTONIANS.

MY RESIDENTS, MY CONSTITUENTS, WHO WORK IN THIS INDUSTRY.

AND I WANT TO MAKE SURE THAT WE ARE ASSURED OF THAT.

MY COUNCIL COLLEAGUES ARE ASSURED OF THAT.

SO THAT IS MOVING FORWARD, AND I DO SUPPORT THIS.

AND KNOWING THAT THIS IS SUPPLEMENTING AND NOT SUPPLANTING.

THANK YOU, BEN FOR SAYING THAT ABOUT SEVEN TIMES, BECAUSE I GOT

[02:55:03]

THAT.

AND THAT WAS WHERE THIS WAS GOING TO -- THIS WAS SUPPOSED TO BE DONE, BECAUSE THIS IS A DIRECTIVE THAT THE COUNCIL GAVE VISIT SAN ANTONIO AT THE BEGINNING OF THAT ONSET, TO INCREASE OUR FUNDING, VISIT SAN ANTONIO'S FUNDING.

AND I -- SO I WILL BE SUPPORTIVE OF THIS, BECAUSE I KNOW THIS HAS BEEN A RISK, AND I KNOW WE ALL ARE TAKING A RISK ON THIS.

THE CITY, VISIT SAN ANTONIO, THE HOTELIERS, EVERYBODY IS, BECAUSE THIS IS A 7 TO 1 RETURN THAT WE'RE GOING TO HAVE TO DELIVER, AND THAT IS NO EASY TASK.

SO THAT'S GOING TO BE A LOT OF WORK.

SO WITH THAT, I'M -- I THANK YOU AND I THANK YOU THAT WE HAVE NOW THE IDEA THAT HAS COME UP, OR THE THOUGHT THAT HAS COME UP, HOMELESSNESS.

AND I HAVE TO SAY, FIRST, MAYOR, I TAKE EXCEPTION TO SOME OF THE REMARKS THAT YOU MADE, BECAUSE WE -- ME, AS A DISTRICT 3 REPRESENTATIVE, I HAVE BEEN WORKING ON HOMELESSNESS AND HOMELESSNESS OUTREACH FOR YEARS NOW.

THIS HAS BEEN SOMETHING THAT'S VERY, VERY IMPORTANT TO ME AND MY CONSTITUENTS, AND WE HAVE BEEN COMMITTED TO THIS.

THAT IS WHY I HOLD TOWN HALL MEETINGS, THAT IS WHY DISTRICT M TWO BUDGET CYCLES AGO TO HAVE THIS HOMELESSEN ENCAMPMENT REACH AND TASK FORCE, THAT'S WHY WE'RE CONTINUING TO HAVE THESE TOWN HALL MEETINGS, SO WE HAVE BEEN WORKING ON THIS FOR YEARS.

THIS HAS NOT JUST COME UP.

AND WE HAVE BEEN WORKING ON THIS TOGETHER, SO I JUST TAKE EXCEPTION TO THAT, BECAUSE I FEEL LIKE IT'S -- THE REMARKS THAT I FELT WERE JUST LIKE, OH, IT'S JUST COMING UP RIGHT NOW, WE'RE TAKING A FORCEFUL LOOK AT IT.

WE'VE BEEN DOING THIS.

SHERYL, HOW MANY -- HOW MUCH MONEY DID WE INCREASE THE HOMELESS OUTREACH IN THIS BUDGET THIS PAST YEAR?

>> SCULLEY: THE CITY COUNCIL APPROVED $300,000 INCREASE, A LITTLE OVER 200,000 -- I THINK ABOUT 230,000 WENT TO HAVEN FOR HOPE AND THE REST TO OTHER AGENCIES WHERE WE INCREASED THEIR FUNDING.

SO A TOTAL OF ABOUT 300,000.

>> VIAGRAN: AND I AM ABSOLUTELY ON BOARD WITH HAVING A CONVERSATION, A POLICY DIRECTIVE, OF WHAT WE'RE GOING TO DO WITH OUR HOMELESS OUTREACH AND OUR HOMELESS -- ADDRESSING THE HOMELESS ISSUE, BECAUSE, YES, THE HOTELIERS KNOW VERY CLEARLY THAT HOMELESSNESS IS AN ISSUE FOR THEM, BECAUSE THEY TELL US EVERY TIME AT THE VISIT SAN ANTONIO BOARD.

WE KNOW THAT THAT'S AN ISSUE, AND IT'S ALWAYS BROUGHT UP AT THE ANNUAL MEETINGS FOR VISIT SAN ANTONIO AS WELL.

AND EVERYWHERE IN THE COMMUNITY.

I ALSO BELIEVE THAT IT HAS TO BE A THOROUGH AND THOUGHTFUL COMMUNITY ROBUST CONVERSATION THAT NEEDS TO HAVE EVERY ONE'S SKIN IN THE GAME, AND I AM ALL FOR THAT.

SO I'M GLAD, MAYOR, THAT WE NOW HAVE A PATH FORWARD AND DIRECTION THAT WE ARE GOING TO HAVE THIS AS OUR NEXT BIG POLICY CONVERSATION.

YOU KNOW, WE HAD THE -- WE HAD THE ALAMO, WE HAD THE HOUSING POLICY TASK FORCE, AND NOW LET'S BE THOUGHTFUL AND THOROUGH ON THIS CONVERSATION ABOUT HOMELESSNESS THAT IMPACTS EVERY SINGLE DISTRICT, THAT I HEAR ABOUT EVERY SINGLE DAY IN MY DISTRICT, AND AS A RESULT WE WILL ADDRESS THIS, AND I WILL CONTINUE TO REPRESENT MY DISTRICT THREE CONSTITUENTS ON THIS ISSUE, BECAUSE IT'S A MENTAL HEALTH ISSUE, IT'S AN OPIOID ISSUE, IT'S A DRUG AND A CRIME ISSUE BECAUSE OF DIFFERENT THINGS, AND IT'S A WHOLE -- IT'S A COMPLEX ISSUE THAT WE ARE GOING TO BE ABLE TO DO TOGETHER AS A COMMUNITY MOVING FORWARD, BUT I'M GLAD THAT THE TPID IS GOING -- SHOULD MOVE FORWARD.

AND I ENCOURAGE MY COLLEAGUES TO MOVE THE TPID FORWARD, BECAUSE THIS IS GOING TO MAKE A DIFFERENCE FOR OUR ENTIRE CITY, ALL THE SAN ANTONIANS AS WELL AS OTHER PARTS OF OUR BUDGET LIKE HISTORIC PRESERVATION AND ARTS AND CULTURE.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: GREAT.

THANK YOU, COUNCILWOMAN VIAGRAN.

THAT'S EVERYONE WHO SIGN UP TO SPEAK.

I'LL JUST CLOSE BY SAYING WHAT HAS -- WHAT HAS LACKED IN THIS ENTIRE CONVERSATION IS A SUSTAINABILITY PLAN FOR THE SERVICES THAT WE PROVIDE IN HOMELESSNESS AND A SUSTAINABILITY PLAN PARTICULARLY AS IT RELATES TO HAVEN FOR HOPE, AND SO I BELIEVE STRONGLY THAT THAT CONVERSATION NEEDS TO HAPPEN, AND IT WILL AS A RESULT OF OUR DISCUSSION HERE TODAY.

WHAT IS CLEAR ABOUT THE TPID, THOUGH, AND LET ME BE CLEAR ABOUT THIS: WE BROUGHT THIS TO

[03:00:01]

THE B SESSION BECAUSE THERE WAS A TREMENDOUS AMOUNT OF CONFUSION ON WHAT THE TPID ACTUALLY IS, AND WE'RE VOTING ON AN EIGHT-YEAR PLAN TOMORROW.

AND AT THE -- AFTER A CONVERSATION WITH THE VSA AND WITH MY COLLEAGUES, WE PLACED THIS ON THE AGENDA SO THAT WE WOULD ELIMINATE THAT CONFUSION.

YOU CAN ALL HAVE CONFIDENCE ABOUT THE FACT THAT THERE IS A SERVICE PLAN AND THERE IS AN EIGHT-YEAR AGREEMENT AND IT IS GOING FORWARD TOMORROW.

I WILL JUST WRAP BY SAYING THAT, AGAIN, THIS IS A HEALTHY CONVERSATION, WE SHOULD HAVE IT.

THIS IS A GOOD PLAN, AND THE VISIT SAN ANTONIO AND THE HOTEL INDUSTRY HAS DONE EVERYTHING THAT WE'VE ASKED THEM TO DO AS IT RELATES TO THE TPID, SO I'M LOOKING FORWARD TO THE VOTE TOMORROW TO MOVE ON, BUT ALSO TO THE CONVERSATION THAT WILL RESULT FROM THIS DISCUSSION.

SO WE WILL NOW ADJOURN.

THERE IS A CITIZEN TO BE HEARD SESSION AT 6:00.

AND WE ARE GOING TO CONVENE AN EXECUTIVE SESSION, BUT THAT WILL TAKE PLACE TOMORROW AFTERNOON.

THANK YOU ALL, HAVE A GREAT AFTERNOON.

OH, I'M SORRY, LET ME CLARIFY.

THAT IS NOT AN ADJOURNMENT.

WE ARE GOING TO CONVENE OUR EXECUTIVE SESSION SCHEDULE FOR TODAYE T

* This transcript was compiled from uncorrected Closed Captioning.