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BRIEFING ONLY
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          [00:00:49]
          >> MAYOR JONES: GOOD AFTERNOON. THE TIME IS NOW 2:03 P.M. 
          ON WEDNESDAY, JUNE 10TH, 2026, AND THE CITY OF SAN ANTONIO B SESSION IS CALLED TO ORDER. MADAM CLERK, PLEASE CALL ROLL. 
          >> CLERK: THANKS, MADAM CLERK. THIS IS A BRIEFING ON THE SAWS RATE REQUEST INCREASE WHICH WE'RE SCHEDULED TO TAKE ACTION ON NEXT WEEK, SO ERIK, 
          OVER TO YOU. >> WALSH: THANK YOU, MAYOR. 
          GOOD AFTERNOON, MAYOR AND COUNCIL. TODAY'S B SESSION BRIEFING WILL PROVIDE AN OVERVIEW OF THE CITY STAFF'S REVIEW OF THE PROPOSED FOUR-YEAR PLAN AND RATE ADJUSTMENTS AS REQUESTED BY THE SAN ANTONIO WATER SYSTEM. AS YOU ALL ARE AWARE UNDER THE CITY CHARTER, CITY STAFF IS TO MAKE RECOMMENDATIONS FROM ANY OF OUR TWO CITY UTILITIES TO CHANGE RATE. OVER THE PAST SEVERAL MONTHS THE PUBLIC UTILITY STAFF WITHIN THE FINANCE DEPARTMENT HAVE WORKED CLOSELY WITH SAWS TO EVALUATE THE IMPACT ON CUSTOMERS, INFRASTRUCTURE FLEED NEEDS AND THE UTILITY'S LONG-TERM FINANCIAL STABILITY. AS A RESULT OF THE VIEW, THE STAFF IS RECOMMENDING SEVERAL MODIFICATIONS TO THE ORIGINAL FOUR-YEAR RATE PLAN AS PROPOSED BY SAWS AND TROY IS GOING TO WALK THROUGH THEM. 
          WE HAVE HAD AN OPPORTUNITY TO MEET WITH MR. P WHEN DAY AND HIS TEAM AND TROY WILL WALK THROUGH THE PRESENTATION TODAY. 
          WE ARE PROPOSING THAT THE RATE ORD FLANS BE PLACED ON THE JUNE 18TH A SESSION FOR NEXT WEEK. CERTAINLY, THAT WILL BE DEPENDENT ON THE CONVERSATION HERE TODAY. BUT THAT IS THE CURRENT PLAN, AND WITH THAT, I WILL TURN IT OVER TO TROY TO GO THROUGH THE POWERPOINT. 
          >> ELLIOTT: THANK YOU, ERIK. AND GOOD AFTERNOON, MAYOR AND CO COUNCIL. AS ERIK MENTIONINGED TODAY I BEAL PROVIDING REVIEW OF THE FOUR-YEAR RATE PLAN AS PROPOSED BY SAWS AND ALSO PROVIDING RECOMMENDATIONS FOR YOUR CONSIDERATION IN ADVANCE OF THE CONSIDERATION ON THE 18TH. WE HAVE A LARGE TEAM HERE FROM SAWS INCLUDING THE PRESIDENT AND CEO ROBERT PUENTE AS WELL AS CECILIA VELASQUEZ, THE CFO AND A NUMBER OF THE MEMBERS OF THE TEAM. I'D LIKE TO START OFF JUST BY THANKING THEM FOR THE TIME AND THE COMMITMENT THEY PUT IN, THE EVENING AND THE WEEKENDS TO ACTUAL LU ANSWER OUR QUESTION AND GET US THE INFORMATION WE NEED IN ORDER TO MAKE AN INFORMED DECISION, CONDUCT OUR REVIEW AND MAKE A RECOMMENDATION TO COUNCIL. 
          ALSO AS ERIK MENTIONED, WE HAVE A SMALL BUT, I GUESS I'D SAY MIGHTY PUBLIC UTILITIES TEAM IN OUR FINANCE DEPARTMENT, AND WITH ME TODAY, I'D ALSO LIKE TO TAKE THE OPPORTUNITY TO INTRODUCE TWO OF OUR INDIVIDUALS, WE HAVE JEFF PULLEN WHO'S THE INTERIM ASSISTANT FINANCE DIRECTOR UP HERE IN FRONT. HE'S GOT ABOUT 25 YEARS EXPERIENCE. 
          AD DICKSLY WITH 20 YEARS OF EXPERIENCE, WE HAVE MORRIS HARRIS WHO IS SITTING BEHIND HIM, HE'S BEEN WORKING ON THESE ITEMS AS WELL. 
          THIS TEAM HAS BEEN INTEGRAL IN CONDUCTING THIS REVIEW THAT WE'RE GOING OVER TODAY. THIS TEAM IS BASICALLY DEVELOPED UNDER THE CITY CHARTER. JUST VERY QUICKLY UNDER THE CITY CHARTER AS ERIK MENTIONED, WE HAVE SEVERAL RESPONSIBILITIES AS A PUBLIC UTILITIES TEAM TO MONITOR THE FINANCIAL CONDITION OF PUBLIC UTILITIES AND FOR ANY REGULATORY AND POLICY ISSUES IMPACTING THE CITY. 
          WE'RE ALSO RESPONSIBLE FOR BASICALLY REVIEWING ANY AND ASSEMBLING THE FACTS WHICH ARE ESSENTIAL FOR DETERMINING THE PROPER DETERMINATION OF COST. AS PART OF THAT WE'RE HERE TODAY REPORTING THE FINDINGS OF OUR REVIEW AND OUR RECOMMENDATIONS TO YOU AS CITY COUNCIL. 
          I THOUGHT IT WOULD BE VALUABLE TO GO THROUGH KIND OF THE COMPREHENSIVE 
          [00:05:01]
REVIEW THAT THIS TEAM DOES. WE LOOKED AT SEVERAL ITEMS IN TANDEM WITH SAWS. FIRST OF ALL, WHICH IS THE RATE MODEL, IT'S OUR MULTIYEAR FINANCIAL PLAN THAT KIND OF BRINGS ALL THESE COMPONENTS TOGETHER IN TERMS OF THE REVENUE REQUIREMENTS, IN TERMS OF THEIR O & M, THEIR DEBT SERVICE, THEIR DEMANDS. THE PAYMENT TO THE CITY, AS WELL AS THEIR CONTRIBUTIONS TO RENEWAL AND REPLACEMENT FUNDS. 
          WHEN WE LOOK AT THIS RATE MODEL, WE LOOK AT IT IN TOTAL THROUGH LOOKING AT HISTORICAL VERSUS THE FORECAST. AS I MENTIONED, A PIECE OF THAT RATE MODEL INCLUDE THE SALES FORECAST. 
          THIS TEAM TAKES THAT SALES FORECAST, GOES INTO DETAIL LOOKING AT WHAT HAS HAPPENED HISTORICALLY, WHAT THE ASSUMPTIONS ARE FOR THE FORECAST IN THE FUTURE, CONDUCTING THINGS LIKE LINEAR REGRESSION TO MAKE SURE WE'RE COMFORTABLE AND IN LINE WITH THE SALES FORCE THAT SAWS HAS PROPOSED. WE LOOK AT THE REVENUE REQUIREMENTS. 
          YOU KNOW, WHAT DOES IT TAKE IN TERMS OF REVENUE OR RATE SUPPORT TO BASICALLY SUPPORT THEIR OPERATIONS AND THEIR MAINTENANCE, THEIR DEBT SERVICE AND THEIR CAPITAL PROGRAM. THEIR OPERATIONS AND MAINTENANCE BUDGET. WE SPENT A LOT OF TIME, I'LL TALK ABOUT THIS ON A COUPLE OF TIMES IS WHERE WE SPENT A LOT OF OUR REVIEW IN TERMS OF HISTORICALLY WHAT'S BEEN THE TRENDS ON THEIR OPERATION AND MAINTENANCE BUDGET, WHAT ARE THE ASSUMPTIONS BUILT INTO THAT OPERATION AND MAINTENANCE BUDGET IN TERMS OF LOOKING OVER THE COURSE OF THE FOUR-YEAR RATE PLAN. WE SPEND TIME DISCUSSING AND TALKING TO THEM ABOUT THEIR CAPITAL PLAN OVER THE FIVE-YEAR CIP. HOW THEY INTEND TO PLAY FOR THAT CAPITAL PLAN UNDER THE FINANCING PLAN, WHAT THE KEY FINANCIAL METRICS THEY LOOK AT AND HOW THEY ARE FORECASTING THOSE FINANCIAL METRICS UNDER THIS NEW RATE MODEL. AND THEN ALSO HOW THOSE TRANSLATE INTO CREDIT CONSIDERATIONS WITH THE RATING AGENCIES. 
          AND WE SPEND TIME GOING THROUGH THE CREDIT RECORDS TO MAKE SURE THAT THE PLAN -- REPORTS TO MAKE SURE THE PLANS THEY'RE PUTTING IN PLACE IS CONSISTENT WITH WHAT THE RATING AGENCIES ARE LOOKING AT IN TERMS OF WHAT COULD IMPACT THEIR CREDIT AND WHAT COULD MAKE THEIR CREDIT RATINGS WORSE. THEN ON THE FAR RIGHT SIDE, WE LOOK AT THEIR FINANCIAL STATEMENTS, COST OF SERVICES, AND LASTLY WE LOOK AT THE AFFORD NLT PROGRAM TION, AND THEN THIS ALL RAPS UP INTO A SUMMARY OF WHAT'S THE BILL IMPACT TO OUR RESIDENTS. AND I'LL SHOW YOU THAT. 
          WE'LL GO THROUGH A LOT OF THESE COMPONENTS HERE IN A MINUTE INDIVIDUALLY. 
          IN TERMS OF KEY DATES JUST AS A REFRESHER, NOVEMBER 4TH, SAWS BOARD APPROVED THEIR 2026 INTERIM BUDGET. ON APRIL 7TH, SAWS BOARD HAD THEIR FIRST PUBLIC HEARING. THEY CAME BEFORE THE COUNCIL ON MAY 7TH, PROVIDED A BRIEFING TO CITY COUNCIL ON THE PROPOSED RATE PLAN. MAY 19TH, THE APPROVAL OF THE AMENDED BUDGET AND OUR RESOLUTION AND SUPPORT OF THEIR PROPOSED RATE PLAN THAT'S TO BE CONSIDERED BY CITY COUNCIL. THEN, OF COURSE, WE'RE HERE TODAY WITH THE CITY STAFF REVIEW AND RECOMMENDATION WITH THE ANTICIPATION OF BEING ON THE JUNE 18TH COUNCIL FOR APPROVAL OF THE RATE REQUEST. JUST A REVIEW OF THE ORIGINAL, OR SUMMARY OF THE ORIGINAL RATE REQUEST AS PROPOSED BY SAWS, THEIR FOUR-YEAR RATE PLAN, THREE CLASSES, THE RESIDENTIAL, GENERAL AND IRRIGATION. 
          FOCUS MOSTLY ON RESIDENTIAL FROM '26 THROUGH '29. 
          '26, AS ORIGINALLY PROO POSED WAS 7.9%. 2027, 7.6%. 
          THOSE WERE FIRM RATES. THEIR PROPOSAL WAS AN UP TO RATE FOR '28 AND '29. 
          A 7.1% FOR '28, AND 6.7% FOR 2029. I WILL POINT OUT THAT GIVEN WHERE WE ARE IN THEIR FISCAL YEAR 2026, WHICH IS THEIR CALENDAR YEAR, THE INITIAL RATE OF '26 OF 7.9% WOULD ONLY BE A PERIOD EFFECTIVE JULY 1ST FORWARD, ESSENTIALLY PROVIDING REVENUE FOR FIVE MONTHS. 
          AND JUST FOR CONTEXT, THE LAST SAWS RATE ADJUSTMENT WAS IN 2020 ALSO WITH A DESIGN CHANGE IN 2023. WHAT DOES THAT MEAN IN TERMS OF THE AVERAGE RESIDENTIAL BILL IMPACT AND THE ANNUAL RATE REVENUE. 
          ON THE LEFT TWO COLUMNS ON THE LEFT OF THE TABLE, THESE ARE THE YEARS AND RATE INCREASE I MENTIONED ON THE PRIOR PAGE, OR THE PRIOR SLIDE. 
          YOU CAN SEE THE AVERAGE RESIDENTIAL BILL IMPACT BASED ON THOSE RATE KRE INCREASES OF $4.47 ON AVERAGE IN THE FIRST YEAR. 
          INCREASING AN ADDITIONAL 4.66 IN 2027, 4.65 IN 28 DAILT, AND 4.73 IN 2929. 
          AND YOU CAN SEE THE ASSOCIATED REVENUE IT THROWS OFF IN TERMS OF A RATE INCREASE. AS I MENTIONED EARLY ON, OR TALKED ABOUT, THERE WAS ALSO A FLOW OF FUNDS. WHAT THIS FLOW OF FUNDS IS, IT TALKS ABOUT HOW THAT REVENUE IS GOING TO BE YOU USED AND WHAT'S THE PRIORITY OF THEIR USE OF THAT REVENUE. SO UNDER THE FLOW OF FUNDS, ANY REVENUE COMING IN TO THE MODELER AND TO THE SYSTEM FIRST GOES TO SATISFY THEIR OPERATIONS AND MAINTENANCE EXPENSES. 
          AFTER THAT, SECONDARILY, IT GOES TO SATISFYING THEIR DEBT SERVICE AND 
          [00:10:03]
RESERVE REQUIREMENTS. THEN YOU HAVE THE CITY PAYMENT, THE MATCHING CITY PAYMENT TO THE REPAIR AND REPLACEMENT FUND. 
          THEN ANY BALANCE AFTER THAT GOES TO THE REPAIR AND REPLACEMENT FUND AS WELL. THIS NEXT SLIDE TAKES THAT AND KIND OF PUTS IT INTO MATHEMATICAL PICTURE FOR YOU. COMPARING THIS FLOW OF FUNDS TO THE 2025 APPROVED BUDGET, TO THE 2026 AMENDED BUDGET THAT WAS RECENTLY ADOPTED BY SAWS, YOU CAN SEE IN THE VERY TOP UNDER THE SOURCES OF FUNDS, OPERATING REVENUES, APPROVED BUDGET, 2025, 892 MILLION VERSUS 930 MILLION. THAT DIFFERENCE IS 38 MILLION. THAT IS ACTUALLY BECAUSE THAT RATE INCREASE IS ONLY FOR A PARTIAL YEAR. SO ABOUT A 4.3% DIFFERENCE. 
          MOVING DOWN THE TABLE TO NONOPERATING REVENUES, SLIGHT DIFFERENCE OF $2 MILLION LESS, THAT'S PRIMARILY GOING TO BE THE IMPACT, JUST AS WE AS THE CITY, WE'RE HAVING AN IMPACT ON OUR INTEREST REVENUES DUE TO LOWER INTEREST RATES, SAWS IS NOT IMMUNE FROM THAT AS WELL. 
          GOING TO THE USES OF FUNDS, AS I MENTIONED THERE ARE THE FLOW OF FUNDS, YOU HAVE YOUR OPERATIONS AND MAINTENANCE, AND WE'LL SPEND A LITTLE BIT OF TIME ON THIS LINE ITEM IN MORE DETAIL ZERO IN THE UPCOMING SLIDES. COMPARED TO 2025, ABOUT $29.9 MILLION, WE'LL GO THROUGH THE ASSUMPTIONS IN DETAIL, ABOUT 4.8% DECREASE. 
          THE DEBT SERVICE, BASICALLY MAINTAIN THE CAPITAL PROGRAM, AND TRANSFER TO THE CITY OF SAN ANTONIO, AS WELL AS THE DIFFERENCE ON THE RESTRICTED FUNDS FOR THE R & R, WHICH IS GOING TO BE BASICALLY THEIR BOND PROCEEDS AND THEIR IMPACT FEES. AND THEN THE UNRESTRICTED FUNDS IN THE BOTTOM BUCKET. MENTIONED ALSO, ONE OF THE THINGS WE LOOK AT ARE THEIR KEY FINANCIAL METRICS, AND WE SPENT SOME TIME GOING THROUGH THIS WITH CECILIA AND HER TEAM AS FAR AS TODAY'S CASH ON HAND. AS FAR AS TODAY'S CASH ON HAND, OF COURSE, TODAY'S CASH ON HAND IS GOING TO BE THE CASH THAT'S GOING TO BE AVAILABLE AND HOW LONG THAT CASH CAN LAST THEM OVER THE CALENDAR DAYS. 
          CURRENTLY, BASED ON 2024, AND THEY HAVE A TARGET OF 350 DAYS, THEIR PROJECTED TO EXCEED THE TARGET FROM 40 TO JUST OVER 50 DAYS OVER THE FIVE-YEAR PLAN. 
          2024, THEY HAVE CONSERVATIVE ASSUMPTIONS IN THE MODEL SO IT'S GOING TO OUTPERFORM IT. AND YOU CAN SEE FROM '24 OVER THROUGH 2030, THEY'RE PROJECTED TO MAINTAIN THAT CASH ON HAND ABOVE THE BENCHMARK. THE TERMS OF THE DEBT SERVICE COVERAGE, AND WHAT THIS IS, BASICALLY, THIS IS THEIR NET REVENUE, BASICALLY IN HOW THAT'S COVERING THEIR DEBT SERVICE EVERY YEAR. DEBT SERVICE COVERAGE FOR ALL BONDED DEBT THEY MODEL IT AT 1.5 TIMES COVERAGE TO ALLOW FOR CONSERVATIVE FINANCING ASSUMPTIONS. THEY TYPICALLY OUTPERFORM THAT AND THEY TYPICALLY COME IN AT 1.75. AND YOU CAN SEE THAT ON THE RIGHT BY '24 AND '25, ALTHOUGH THEY HAD THAT TARGET, THEY USUALLY COME IN AND OUTPERFORM THAT WITH THE HIGHER DEBT SERVICE COVERAGE. 
          AND BASED ON THEIR BUDGETED ASSUMPTIONS, WE WOULD EXPECT THE SAME FOR '26, '27, THROUGH '30. BASED ON THEIR FINANCIAL MANAGEMENT, BASED ON THEIR DEBT SERVICE COVERAGE, BASED ON THEIR DAYS CASH ON HAND ON THE FINANCIAL METRICS WE JUST MENTIONED, THEY HAVE A VERY STRONG CREDIT RATING WITH FITCH AT AA PLUS, MOODY'S AT AA1, AND S & P AT AA PLUS. 
          ALL THREE WITH STABLE OUTLOOK MEANING BASED ON THEIR FINANCIAL CONDITIONS, BASED ON THE RATING AGENCIES' REVIEW OF THEM, THEY REALLY DON'T HAVE ANY INTENTION OF CHANGING THAT RATING UNLESS SOMETHING SUBSTANTIAL HAPPENS TO INFLUENCE THEIR FINANCIAL POSITION. 
          THESE ARE ALL TOP OF THE HIGH GRADE SCALE IN TERMS OF THE MARKETING WHEN THEY GO TO THE MARKET FOR THEIR INVESTORS. AS I MENTIONED UNDER THE FLOW OF FUNDS, WANTED TO SPEND A LITTLE TIME TALKING ABOUT THE OPERATIONS AND MAINTENANCE BUDGET. HERE, WHEN OUR TEAM GOES THROUGH THIS, WE GO THROUGH IT IN SOME DETAIL, AND EVEN MORE GRANULAR LEVEL THAN WHAT WE'RE SHARING TODAY ON THIS SLIDE. 
          BUDGET, BASICALLY AN INCREASE OF ABOUT 13.4 MILLION OR 5.9% INCREASE IN THEIR BUDGET OVER 2025. WE ALSO LOOKED AT THEIR CONTRACTUAL SERVICES, YOU CAN SEE HOW THAT BUDGET IS COMPARING TO 2025 AS WELL, WITH THE $6.7 MILLION INCREASE. MATERIALS AND SUPPLIES, AS WELL AS A TOTAL O & M AND THEN THEIR CAPITALIZED COSTS. 
          CAPITALIZED COSTS ARE GOING DOWN, THIS IS WITH THE COMPLETION OF THEIR AMI PROGRAM. HISTORICALLY, THOSE AMI POSITIONS HAVE BEEN CAPITALIZED AND FUNDED OUT OF THEIR BOND PROGRAM, CAPITALIZED AS PART OF THEIR PROJECTEDS. WITH THAT PROJECT BEING COMPLETED IT NOW CONVERTS BACK TO THE O & M SIDE AND YOU SEE A REDUCTION IN CAPITALIZED COST BUT AN INCREASE OF O AND M. SO FOR TOTAL O & M INCREASE OVER THE 2025 BUDGET TO 2026, ABOUT $26 MILLION. 
          [00:15:01]
TAKING A LITTLE DIFFERENT LOOK AT THE O & M AS FAR AS WHAT ARE THOSE KEY DRIVERS, THE FIRST THREE LINES RELATE BACK TO THE PERSONNEL AND FRINGE BENEFITS I MENTIONED ON THE PRIOR SLIDE. IT'S PART OF THE '26 BUDGET, THEY'RE LOOKING AT AN ADDITION OF 37 POSITIONS THROUGHOUT THE ORGANIZATION, ABOUT AN INCREASE OF $4.4 MILLION. 
          THEY HAVE SALARY INCREASE ADJUSTMENTS, 3%, AND I'LL TALK MORE ABOUT THIS ON THE NEXT SLIDE, AND THEN HALF A PERCENT BASED ON THE CEO'S SCORE CARD PLUS A CHANGE TO THEIR ENTRY WAGE WHICH RESULTS IN ABOUT $4.9 MILLION INCREASE. AND THEN ASSOCIATED RETIREMENT AND BENEFITS OF 4.1. THEN YOU CAN SEE THE OTHER MAJOR PIECES OF THEIR O & M BUDGET AND WHERE THOSE INCREASES ARE, A LOT OF THAT IS GOING TO BE DUE TO INFLATION AS WELL. FOR A TOTAL INCREASE OF $25.9 MILLION. SO WHEN WE LOOKED AT THEIR KEY DRIVERS OR KEY ASSUMPTIONS, AS I MENTIONED, THEY WERE ADDING 37 POSITIONS SUPPORTED ACROSS VARIOUS POSITIONS IN THE ORGANIZATION. 
          AS I MENTIONED BEFORE, THEY'RE LOOKING AT 3% PAY INCREASE FOR 2026, AND ALL ALONG EACH YEAR OF THE RATE MODEL. IN 2026, THEY ALSO HAD A HALF PERCENT INCREASE ON THE CEO'S SCORE CARD. THAT CEO SCORE CARD IS NOT EMBEDDED IN THE FUTURE YEARS OF '27, '28 AND '29. 
          WE'RE ALSO LOOKING AT A RECOMMENDED LIVING WAGE INCREASE FROM 19 TO $20. 
          WE ALSO TALKED TO THEM ABOUT UTILITY COST INCREASE, LOOKED AT THEY ARE EXPERIENCING SOME INFLATION OR INCREASE IN UTILITY COST. 
          THEY ALSO HAVE AN INCREASE BUDGET IN THERE FOR THE CPS RATE INCREASE WHICH I'LL GO INTO MORE DETAIL IN A MINUTE. WE SAT DOWN WITH THEM ON A LINE BY LINE BASIS ON THEIR MAJOR CONTRACTS TO SEE -- DETERMINE THEIR INFLATIONARY IMPACTS ON A LOT OF THEIR CONTRACTS LIKE CHEMICALS, WATER CONTRACTS, BASED ON THOSE CONTRACTS, THERE'S BUILT-IN ADJUSTMENTS IN THERE, WHICH WE WERE ABLE TO HAVE DISCUSSIONS AND CONFIRM THOSE AS WELL. 
          WATER CONTRACTS, DEPENDING ON THE WATER CONTRACT, 3 TO 7% INCREASE ANNUALLY DEPENDING ON THE CONTRACT ITSELF. 
          I'LL TALK MORE ABOUT THAT. SO BASED ON OUR REVIEW, WE HAD, AS I MENTIONED, WE HAD IN-DEPTH DISCUSSIONS WITH THE SAWS AND CECILIA AND HER TEAM. BASED ON THAT REVIEW, WE CAME TO A MUTUAL UNDERSTANDING OR MUTUAL AGREEMENT AND WE'RE GOING TO BE RECOMMENDING ADJUSTMENTS TO THEIR OPERATING AND MAIPTD INNOCENCE BUDGET IN THREE PRIMARY AREAS. PERSONNEL POSITIONS, WATER CONTRACTS AND UTILITY BUDGETS. SO IN TERMS OF PERSONNEL AND POSITIONS, IN 2023, BASED ON THEIR AUTOMATED METER INSTALLATIONS, THEY WERE BROUGHT IN-HOUSE THROUGH SOME CHALLENGES ON THEIR EXISTING CONTRACT. WHEN THEY DID THAT, THERE WERE 105 POSITIONS BROUGHT IN-HOUSE, AND THERE'S AN EXISTING NUMBER OF, I THINK, 49 POSITIONS THAT WERE METER READERS IN THIS WELL FOR A TOTAL OF 154 POSITIONS. THESE POSITIONS ARE CURRENTLY IN THEIR FILLED OPERATIONS GROUP. THEY INCLUDE POSITIONS SUCH AS FIELD REPRESENTATIVES, METER TEXAS IN ADDITIONS, FIELD SERVICE INSPECTORS, CUSTOMER SERVICE AND PROGRAM DATA SUPPORT. SO WITH THE CONCLUSION OF THE AMI PROGRAM, THEY HAD THE 48 -- 49-METER READERS AND THEY HAD THE 105 PEOPLE. WE AGREE WITH SAWS THAT BASED ON SOME OF THE METRICS THAT WE'RE ABLE TO REVIEW THAT THERE IS A NEED TO RETAIN SOME OF THOSE POSITIONS DUE TO THE INCREASE OF NONROUTINE SERVICE METRICS, HOW THEY'RE RESPONDING TO THINGS. THEY ALSO NEED TO STABILIZE AMI PROGRAM, SO THERE'S GOING TO BE SOME LEVEL OF SUPPORT. 
          AS WE'RE GOING THROUGH THE REVIEW, THERE'S ALSO 58 V VACANCIES IN THAT TEAM AS WELL. WHAT WE'RE RECOMMENDING UNTIL IT STABILIZES TO REDUCE THOSE 48 VACANCIES.    THERE'S AN OPPORTUNITY THAT I'LL TALK ABOUT IN A MINUTE IN THE LATTER TWO YEARS OF THE RATE TO COME BACK AND HAVE A POSSIBLE ADJUSTMENT BASED ON THOUSAND THESE THINGS STABILIZE. SO WE'RE RECOMMENDING THE ELIMINATION OF THE 48 VACANCIES AND IT GIVES THEM ROOM TO ADD THE 37 POSITIONS AS PROPOSED. 
          TWO OTHER AREAS WE LOOKED AT AND HAD CONVERSATIONS ABOUT IS THEIR WATER SUPPLY CONTRACTS, ONE IS THE WATER EXPLORATION COMPANY CONTRACT KNOWN AS WICO. WE'RE RECOMMENDING A REDUCTION IN THEIR O & M BUDGET OF $6 MILLION. TRADITIONALLY THIS HAS BEEN BUDGETED $8 MILLION YEAR OVER YEAR FOR THE LAST FOUR YEARS. BUT BECAUSE OF THE DROUGHT CONDITIONS, THAT IS A TAKE AND PAY CONTRACT. 
          IT HAS NOT BEEN PRODUCING THE WATER OUT OF THOSE -- OUT OF THAT CONTRACT. 
          AND HISTORICALLY IT HAS BEEN ABOUT LESS THAN $2 MILLION. 
          SO WE'RE RECOMMENDING THEY RIGHT SIZE THE BUDGET IN THAT AREA. 
          THERE IS AN OPPORTUNITY FOR THEM TO RENEGOTIATE THIS CONTRACT IN JULY OF 2027, BASED ON THOSE NEGOTIATIONS, AS I MENTIONED ON THE O & M SIDE, THERE WILL BE AN OPPORTUNITY TO HAVE DISCUSSIONS, BASED ON OUR RECOMMENDATIONS, IN THE LATTER TWO YEARS OF THE FOUR-YEAR RATE. 
          ALSO UNDER THE EXPENSE BUDGET THERE'S $1.2 MILLION THAT WAS BUILT IN FOR CPS FUTURE RATE INCREASES. THERE IS ALSO THIS RATE 
          [00:20:05]
INCREASE OF $1.3 MILLION FOR CPS. JUST LIKE THE CITY TODAY, WE DON'T BUDGET SAWS INCREASES, WE DON'T BUDGET CPS RATE INCREASES, SO WE'D RECOMMEND REMOVING THAT AND COME BACK FOR FUTURE CONSIDERATION, IN THE EVENT THEY NEED THAT. SO WE'RE RECOMMENDING IN TERMS OF THE O & M BUDGET, RECOMMENDING APPROVAL OF THE FOUR-YEAR RATE PLAN AFTER CONSIDERATION OF THESE O & M PROPOSED ADJUSTMENT FOR A TOTAL OF ABOUT $11 MILLION. WE ALSO SPENT TIME WITH THEM GOING THROUGH THEIR CIP. WE LOOKED AT THEIR CIP IN TERMS OF '26 AND '27. WE WENT THROUGH THE INDIVIDUAL PROJECTS WITH THEM, WE CONFIRMED THOSE PROJECTS BASED ON WHAT THEY COMMUNICATED WITH COUNCIL WHAT WERE THEIR GOALS. WE ALSO HAD DISCUSSIONS HOW THEY WERE PRICING AND TURNING THOSE COSTS. THEIR '26 AND '27 CIP IS VERY DETAILED, VERY WELL LAID OUT. THERE WAS A CHANGE IN PROCESS AS YOU GET TO '28 AND '29. WE WENT THROUGH THAT CHANGE IN PROCESS, WE UNDERSTAND WHY THEY DID IT, HOW THEY DID IT, BUT IN ESSENCE, THERE ARE -- '28 AND '29 THERE ARE PROGRAMMATIC POOLS OR CATEGORIES OF MONEY THAT WILL BE AVAILABLE TO DIRECTLY ADDRESS, FOR EXAMPLE, WATER LOSS. WE SAT DOWN WITH THEM -- UNDERSTANDING HOW THEY DEVELOPED THOSE COSTS UNDER THOSE POOLS. 
          WE UNDERSTAND HOW THEY'RE DEVELOPING AND WE AGREE WITH THEM IN TERMS OF HOW THEY IDENTIFIED THOSE COSTS IN TERMS OF THEIR PREDICTIVE MODELING, LOOKING AT THE AGE OF THE INFRASTRUCTURE, THE TYPES OF PIPES, THE SOIL CONDITIONS, AND WHERE THOSE -- THE IMPROVEMENTS ARE. 
          SO BASED ON LOOKING AT THEIR CIP FOR A TOTAL OF $3.2 MILLION, WE ARE COMFORTABLE WITH THE CIP -- FIVE-YEAR PLAN. MAJORITY OF THE CIP HAS SPECIFIC FOCUS IN TERMS OF WATER DELIVERY AND WASTEWATER, MAKING UP ABOUT 2 $2.9 BILLION OF THAT $3.2 BILLION PROGRAM. AGAIN, TAKING A DIFFERENT LOOK AT THEIR CIPS, LOOKING AT THOSE MAJOR INITIATIVES OR MAJOR AREAS OF FOCUS, WATER MAIN REPLACEMENTS -- I'M NOT GOING TO GO THROUGH ALL OF THEM, BUT STARTING AT THE TOP, ABOUT [INDISCERNIBLE] WATER MAIN REPLACEMENTS AND GOVERNMENTAL MAINS AS WELL AS THE BOTTOM, SO YOU CAN KIND OF SEE HOW THEIR CIP IS BEING TARGETED IN THOSE SPECIFIC AREAS. IN ADDITION TO THEIR CIP, AS I MENTIONED, WE LOOKED AT HOW THEY'RE GOING TO PAY FOR THEIR CIP, WHAT IS THEIR PLAN OF FINANCE AND WHAT ARE THE ASSUMPTIONS. AS I MENTIONED VERY EARLY ON, THEY DO UTILIZE CONSERVATIVE ASSUMPTIONS AND THERE'S A REASON OF THAT BECAUSE OF THE INTENT OF OUTPERFORMING THOSE ASSUMPTIONS SO THEY CAN MEET THEIR DEBT SERVICE COVERAGE LEVELS. THEY ASSUME SENIOR LEVEL DEBT WILL BE ISSUED TO FUND THE CAPITAL PROGRAM. 
          WE HAVE A COUPLE OF COMMENTS ON THAT ON THAT NEXT SLIDE. 
          THEY ASSUME COMMERCIAL PAPER PROGRAM IS FULLY UTILIZED. 
          TYPICALLY LIKE WE DO TODAY, THEY MAY USE A COMMERCIAL PAPER PROGRAM, THAT'S INTERIM FUNDING AND THEY TAKE THAT OUT LONG-TERM -- AUDIO] -- 1.5 TIMES WITH A COVERAGE TARGET OF 1.75. 
          HISTORICALLY, THEY'VE BEEN ABLE TO HIT THAT 1.75 TIMES COVERAGE BASED ON THE CONSERVATIVE ASSUMPTIONS THAT ALLOW THEM TO OUTPERFORM THEIR FINANCIAL TARGETS. THESE ASSUMPTIONS ALLOW THEM FOR A STRONG CREDIT POSITION AND ARE LOOKED UPON FAVORABLY BY THE RATING AGENCIES. 
          WE DO HAVE A COUPLE OF RECOMMENDATIONS. THE FIRST OF WHICH FOCUSES ON THEIR SENIOR LEVEL DEBT ASSUMPTION. HISTORICALLY, LOOKING BACK, ALTHOUGH THEY MODEL A SENIOR LIEN DEBT, THEY TYPICALLY ISSUE JUNIOR LIEN DEBT INSTEAD OF THE SENIOR LIEN WITH A FIVE% INTEREST RATE ASSUMPTION. AFTER DISCUSSIONS WITH THEM, THEY REMOVE THE SENIOR LIEN ASSUMPTION AND ASSOCIATED RESERVE -- $3.1 MILLION IN THE REVENUE REQUIREMENT. THE REASON WHY WE MADE THIS RECOMMENDATION IS HISTORICALLY LOOKING BACK, ALTHOUGH THEIR MODEL ASSUMES A SENIOR LIEN ASSUMES, HISTORICALLY THEY HAVE NOT USED THAT IN RECENT HISTORY. THEY HAVE ISSUED THE JUNIOR LIEN DEBT. THE SENIOR LIEN DEBT HAS A RESERVE REQUIREMENT WHICH IS VERY EXPENSIVE FROM A MODELING STANDPOINT BECAUSE WHEN YOU ISSUE THE DEBT TO FUND THAT RESERVE, YOU HAVE TO PAY THE ANNUAL DEBT SERVICE ON THAT, AND THAT ANNUAL DEBT SERVICE IS EQUAL TO ABOUT $3.1 MILLION IN REVENUE REQUIREMENT. WE ALSO RECOMMEND AND SAWS DOES THIS ON AN ANNUAL BASIS ANYWAY, BUT WE RECOMMEND THEY CONTINUE WORKING WITH OUR FINANCIAL ADVISERS TO EVALUATE -- AUDIO] -- FUTURE U UTILIZATION OF CASH, HOW CAN WE USE THAT CASH, HOW CAN WE DEPLOY IT AND PUT IT INTO PRODUCTION ABOVE AND BEYOND THEIR DAYS CASH ON HAND METRICS. ENHANCING THEIR BUDGET DEVELOPMENT PRACTICES, TO REDUCE SOME OF THE CONSERVATIVISM, MAYBE BUILD SOME OF THAT 
          [00:25:01]
CERTAINTY INTO IT DRIVING TO THAT 1.75 TIMES COVERAGE TARGET IN THEIR FINANCIAL MODEL. THE OTHER AREA WE LOOKED AT IS THEIR AFFORDABILITY PROGRAMS. IN TERMS OF THEIR UPLIFT PROGRAM AND THEIR UPLIFT PROGRAM IS AN UMBRELLA PROGRAM OVER ALL THEIR PROGRAMS IN TERMS OF REQUIREMENTS, THEIR RECOMMENDING THAT [INDISCERNIBLE] PROGRAM, SIMILAR TO WHAT WE DID LAST WEEK WITH CPS, MOVING FROM 125% OF THE FEDERAL POVERTY GUIDELINES TO 150%. 
          THE UPLIFT CUSTOMERS TYPICALLY SEE A SAVINGS ON THEIR BILL OF ABOUT $35 A MONTH ON AVERAGE, AND PROVIDES ROUGHLY A 58% BILL DISCOUNT COMPARED TO NONUPLIFT CUSTOMERS FOR THOSE CUSTOMERS IN NEED. 
          AT THE TOP, YOU CAN SEE FROM '25 TO '26, BASED ON THE PUNTER PROGRAM AT 125, BUT ALSO MOVING TO 150% OF THE FEDERAL POVERTY GUIDELINES, LOOK AT ADDING ABOUT ANOTHER 1700 CUSTOMERS AT 3% INCREASE COMBINED. 
          OUTSIDE OF THE UPLIFT PROGRAM FROM A DISCOUNT STANDPOINT, WE'RE ALSO LOOKING AT CHANGES FROM PROJECT AG QUA AND PLUMBERS TO PEOPLE BY PUTTING AN ADDITIONAL $200,000, WHICH IS ALSO CONSIDERATION IN THE RATE. IN TOTAL SAWS PROJECTS SPENDING ABOUT $3 MILLION IN 2026 ON THEIR AFFORDABILITY PROGRAMS. SO IN SUMMARY, AS WE KIND OF GET TO THE END OF THE PRESENTATION, ON THE LEFT SIDE, HAVE THE THREE DIFFERENT TABLES. THE FIRST TABLE ON THE VERY TOP IS THE ORIGINAL FOUR-YEAR RATE PLAN. AS PROPOSED BY SAWS, BASED ON OUR RECOMMENDATIONS, WE'RE LOOKING AT REDUCTION INCLUDING THE SENIOR LIEN OF ABOUT $14 MILLION. THAT TRANSLATES INTO ABOUT A 1% REDUCTION, GOING AND FOCUSING ON THE RESIDENTIAL SIDE FROM ABOUT 7.9% IN 2026 TO 6.9%. FOR 2027, THOSE O AND M REDUCTIONS CARRY THROUGH THE MODEL AS WELL AS THE SENIOR LIEN ASSUMPTION FROM 7.6 TO 6.5. 
          WE DID HAVE DISCUSSIONS, AS I MENTIONED EARLIER, ON THE PRESENTATION THAT THERE MAY BE OPPORTUNITIES IN TERMS OF LOOKING AT THE WICO CONTRACT, LOOKING AT POTENTIAL CPS RATE INCREASE, LOOKING AT HOW STABILIZATION AMI WORKS OUT AND ALSO REFINING THEIR CIP OVER TIME AND HOW THEY'RE GOING TO FINANCE IT. WE'VE WORKED WITH SAWS, WE MODELED A MINIMUM RATE AT THE VERY BOTTOM FOR 2028, WE WOULD SUGGEST THIS BE A MINIMUM GUARANTEED RATE OR A RATE INCREASE OF 5.5%, BUT THEY WOULD HAVE THE OPPORTUNITY TO COME BACK BETWEEN USING '28, FOR EXAMPLE, IF THEY HAVE NEED ABOVE AND BEYOND 5.5% AND BETWEEN 7%, THEY WOULD COME BACK TO CITY STAFF, THEY WOULD -- WE WOULD HAVE CERTAIN ACCOUNTABILITY MEASURES, I WOULD GO OVER ON THE NEXT SLIDE, THEY WOULD PROVE THE NEED FOR THAT RATE INCREASE BASED ON THAT NEED, WE WOULD HAVE THE ADMINISTRATIVE ABILITY APPROVED BY COUNCIL TO GO UP TO 7%, AND BASICALLY, WE WOULD DO THAT DUE DILIGENCE AND INFORM THE COUNCIL IN THE EVENT WE WERE RECOMMENDING INCREASING THAT ABOVE THE 5.5, BUT ALWAYS BELOW 7%. IN THE EVENT THEY CAME BACK IN ANY OF THESE AND ASKED FOR A RATE INCREASE ABOVE THE MAXIMUM, IT WOULD REQUIRE COUNCIL APPROVAL. 2029 IS THE SAME WAY WITH A MINIMUM GUARANTEED RATE OF 5% UP TO 6.6%, BASED ON PROVIDING US THE SUPPORT AND THE JUSTIFICATION FOR THE NEED, INCREASING IT ABOVE THE 5.5 OR 5% IN '28 AND '29. AS I MENTIONED FOR '28 AND '29, IN THE EVENT THEY NEED TO EXCEED THAT GUARANTEED MINIMUM RATE, THEY WOULD COME BACK TO ME AND MY TIME AND THERE WOULD BE CERTAIN ACCOUNTABILITY MEASURES THAT WE WOULD INCLUDE. WE WANT TO REVIEW THE ACCURACIES OF THE HISTORICAL REVENUE PROJECTIONS AS WELL AS THEIR PROJECTIONS GOING FORWARD. WE'D LIKE TO UNDERSTAND HOW THEIR CAPITAL IMPROVEMENT PLAN OR THEIR CIP HAS PROGRESSED, LOOKING AT HOW THEY FINANCE THAT, IF THERE ARE ANY EFFICIENCIES IN PLACE THAT WE CAN TAKE ADVANTAGE OF. LOOKING AT THE PERFORMANCE OF THE OPERATIONS AND MAINTENANCE AS WELL. ARE THEY PERFORMING AS THEY HAD BUDGETED AND AS THEY INTENDED? COMPREHENSIVE OVERALL MODEL EVALUATION, AND THEN FOLLOWING UP ON THE PROPOSED RECOMMENDATIONS THAT WE MADE AS PART OF THIS REPORT. AND, OF COURSE, ANY ADDITIONAL OTHER INFORMATION, AS REQUIRED. 
          SO IN SUMMARY, BASED ON OUR STAFF RECOMMENDATIONS, BASED ON OUR REVIEW, THIS ALL KIND OF WINDS UP INTO WHAT IS THE IMPACT OF THE RESIDENTIAL BILL. SO ON THE SLIDE YOU HAVE TWO ROWS, ONE IS THE ORIGINAL RATE PLAN AS PROPOSED. THE SECOND ITEM IS THE ADJUSTED RATE PLAN AS PROPOSED BY CITY STAFF. FOR 2025, THE AVERAGE RESIDENTIAL BILL IS ABOUT $56.68. UNDER THE ORIGINAL RATE PLAN, THAT WOULD INCREASE FROM $56.68 TO $61.15, AN INCREASE OF $4.47. 
          [00:30:03]
UNDER THE ADJUSTED RATE PLAN, IT WOULD GO FROM $56.68 TO $60.59, A TOTAL OF $3.91. THAT'S A REDUCTION OF 56 CENTS BUT ALSO KEEP IN MIND IN 2026 THIS IS A PRORATED FOR FIVE MONTHS AS WELL. 
          AND THEN IN '27 THROUGH '28 AND '29, YOU CAN SEE THE IMPACT BETWEEN THE ORIGINAL PROPOSED AND THE ADJUSTED RATE PLAN. AND IN '28 AND '29, THESE ARE BASED ON THE MINIMUMS. IN THE EVENT THAT THERE WAS AN INCREASE GRANTED ABOVE THOSE MINIMUM GUARANTEED RATES, '28 AND '29 WOULD INCREASE. WITH THAT, MAYOR, COUNCIL, THAT CONCLUDES MY PRESENTATION. BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE. 
          >> MAYOR JONES: GREAT. THANK YOU, TROY, THANK YOU, JEFF, AND AS MENTIONED, I SEE MUCH OF THE SAWS LEADERSHIP TEAM HERE. 
          THANK YOU FOR ALL OF THE HARD WORK THAT WENT INTO TODAY'S PRESENTATION. 
          AND IT'S REASSURING TO SEE THAT EVEN WITH THAT SCRUB, THIS IS NOT TOO FAR OFF FROM WHERE SAWS ORIGINALLY CAME IN. I AM -- AND PARTICULAR WHAT JUMPS OUT AT ME IS WHEN WE LOOK AT THE $3.2 BILLION CAPITAL IMPROVEMENT PROJECT, NOT ONE OF THOSE PROJECTS CAME OFF OF THE LIST AS RECOMMENDED AFTER THE PUBLIC UTILITIES REVIEW. SO I THINK THERE'S LARGE AGREEMENT THAT THOSE PROJECTS ARE NEEDED BASED ON COST, SCHEDULE AND, OF COURSE, NEED. SO THANK YOU FOR THAT. LET ME ALSO JUST SAY, I KNOW THIS IS ALSO THE PROCESS THAT WAS UTILIZED LAST TIME THIS WAS REVIEWED, I.E., YOU KNOW, IF THERE'S CERTAINTY IN A& COUPLE OF YEARS AND IF THERE'S A CHANGE -- STAFF. THERE WAS -- I WANT TO SHARE SOMETHING THAT WAS SHARED WITH THE BOARD, AND I WANT TO SAY THIS WAS ALSO SHARED WITH THE COUNCIL, BUT WHAT IT DOES IS REALLY SPEAK TO WHY THAT FLEXIBILITY IS SO IMPORTANT. THIS WAS FROM THE SAWS CAPITAL PROGRAM EFFICIENCY STUDY, WHICH WAS CONDUCTED BY WILLIAMS CONSULTING PARTNERS, AND I THINK THIS MAY HAVE BEEN BROUGHT UP IN OUR LAST SESSION BUT WAINT TO REITERATE IT BECAUSE IT UNDERSCORES WHY THAT FLEXIBILITY IS SO IMPORTANT. SO PRELIMINARY RESULTS, IT SAYS SAWS, QUOTE, MAINTAINS A SOPHISTICATED ABILITY TO IDENTIFY AND MANAGE LARGE-SCALE INFRASTRUCTURE PROJECTS UNDERPINNED BY AN EXCEPTIONALLY STRONG BALANCE SHEET, HIGHLY STABLE AND TECHNICALLY COMPETENT WORKFORCE AND INTEGRATED APPLICATIONS, END QUOTE. HOWEVER, RIGHT, IT GOES ON TO SAY -- ECONOMIC ENVIRONMENT, AGING INFRASTRUCTURE, REGULATORY AND RESILIENCE REQUIREMENTS, WORKFORCE CONSTRAINTS, ALONG WITH RISING CONSTRUCTION AND OPERATING COSTS UNDERSCORE THE NEED FOR MORE FLEXIBLE SCENARIO-BASED CAPITAL PLANNING AND STRONGER RISK MANAGEMENT. 
          SO ALL TO SAY, THAT'S WHY THAT FLEXIBILITY, GIVEN THE FLUCT WAKESES WE'RE NOT ONLY SEEING IN THE ECONOMY -- FLUCTUATIONS WE'RE NOT ONLY SEEING IN THE ECONOMY, BUT ALSO WHAT THAT MEANS FOR THE OPERATION OF OUR UTILITIES IS WHY IT'S IMPORTANT, AND SO I WANT TO THANK YOU AGAIN FOR THE ANALYSIS THAT SHOWED WHAT IS NOW THE MINIMUM THAT WE CAN EXPECT AND FOLKS CAN PLAN FOR IN THE OUT YEARS, '28 AND '29 IN PARTICULAR. 
          LET ME OPEN IT UP TO COMMENTS FROM MY COLLEAGUES. 
          COUNCILMAN WHYTE? >> WHYTE: THANKS, MAYOR. JUST A QUESTION OR TWO. 
          TROY, WHY THE CHANGE HERE FROM WHAT SAWS ORIGINALLY ASKED FOR? 
          >> ELLIOTT: I THINK BASED ON CONVERSATION WITH SAWS, I MEAN, I THEN WHEN THEY WERE BUILDING THEIR BUDGET, THE RATIONALE MAKES SENSE. 
          I THINK BASED ON CONVERSATIONS, THERE'S SOME OPPORTUNITIES TO 
          MAKE SOME ADJUSTMENTS. >> WHYTE: WHY? WHY DID WE THINK WHAT WAS ORIGINALLY PRESENTED WASN'T -- WASN'T RIGHT ON? 
          >> ELLIOTT: I MEAN, FOR EXAMPLE, AS I WALK THROUGH THE SLIDES, WHEN WE -- WHY IT WASN'T RIGHT ON, WE THINK THERE'S OPPORTUNITIES -- TAKE THE WICO CONTRACT, FOR EXAMPLE, THAT IS A TAKE OR PAY CONTRACT. 
          IN THE EVENT. >> MAYOR JONES: SO THAT ONE'S REALLY IMPORTANT. 
          CAN YOU SPEND MAYBE 20 SECONDS ON EXPLAINING WHY THAT CONTRACT IS IMPORTANT AND WHAT IT ALLOWS FOR OUR COMMUNITY. 
          THANKS. >> ELLIOTT: SO TO THE EXTENT THAT WATER'S AVAILABLE, THEY HAVE TO TAKE THAT WATER AND THEY HAVE TO PAY FOR IT. 
          >> MAYOR JONES: CAN YOU SPEAK INTO THE MIC, PLEASE. 
          >> ELLIOTT: TO THE EXTENT THAT WATER IS AVAILABLE UNDER CONTRACT, THEY'VE THEY'RE REQUIRED TO TAKE THAT WATER AND PAY FOR IT. 
          BECAUSE OF THE DROUGHT CONDITIONS, THAT CONTRACT HAS NOT BEEN PRODUCING THE WATER SO THEY HAVE NOT BEEN REQUIRED TO TAKE THAT WATER AND PAY FOR IT. SO UNDER THE CONTRACT, THERE IS SOME EXPOSURE THAT IN THE EVENT IT CONTINUES TO RAIN LIKE IT HAS, THEY WILL HAVE TO PAY FOR IT GOING UP FROM THAT $2 MILLION THAT WE TALKED ABOUT UP TO 8 MILLION. SO OUR POSITION, AS WE TALKED TO THEM, IS THEIR CONTRACT'S COMING UP IN JULY OF 2027, THEY'RE GOING TO RENEGOTIATE THAT CONTRACT, HISTORICALLY, YOU HAVEN'T NEEDED THAT AMOUNT UNDER THAT 
          [00:35:04]
CONTRACT, SO OUR RECOMMENDATION IS TO REDUCE IT. 
          BUT THEN COUPLED WITH THE OUTER TWO YEARS, IN THE EVENT NEGOTIATE THAT CONTRACT UNDER DIFFERENT TERMS, YOU CAN COME BACK AND RECAPTURE SOME OF THAT IF YOU NEED TO, BUT FOR PURPOSES OF TODAY, WE'RE RECOMMENDING 
          REDUCING IT. >> WHYTE: SO YOU ALL LOOKED AT THAT, IDENTIFIED THAT CONTRACT, TOOK THAT ISSUE TO SAWS, THEY AGREED AND THAT'S 
          HOW THAT GOT STRIPPED OUT. >> ELLIOTT: YES, SIR. 
          ON ALL THESE ITEMS, WE'VE HAD IN-DEPTH CONVERSATIONS WITH SAWS 
          AND THEY'VE AGREED TO THESE. >> WHYTE: OKAY. 
          THAT'S ONE GOOD EXAMPLE. ANYTHING ELSE? WHAT ELSE LED TO YOU GUYS 
          DECREASING THE NUMBER? >> ELLIOTT: AS I MENTIONED, THE -- EMBEDDED IN THEIR BUDGET IS THE ASSUMPTION FOR AN INCREASE FOR CPS -- VERY VOCAL THAT WE'RE EXPERIENCING INCREASED COSTS IN OUR UTILITIES, BUT THEY ALSO HAD THE CPS RATE BUDGET EMBEDDED IN THERE AS WELL FOR A RATE INCREASE. AS I MENTIONED, SIMILAR FROM A BUDGET PRACTICE AS A CITY, WE DON'T ADOPT A BUDGET WITH RATE INCREASES EMBEDDED IN THERE. AND SO BASICALLY HOLDING THEM TO THE SAME MEASURES THAT WE HOLD OURSELVES TO IN TRANSLATING THAT TO THEIR BUDGET. 
          >> WHYTE: OKAY. ALL RIGHT. SO WE HAVE THE CONTRACT, 
          WE HAVE CPS. ANYTHING ELSE? >> ELLIOTT: LAST TWO THINGS, LIKE I MENTIONED ARE THE SENIOR LIEN DEBT. 
          AND THEN THE LAST ONE ALSO IS THE POSITIONS AFTER THE CONCLUSION OF 
          THE AMI PROGRAM. >> WHYTE: EXPLAIN THAT LAST ONE. 
          >> ELLIOTT: SO UNDER THE AMI -- >> WHYTE:  -- PLEASE. 
          >> ELLIOTT:  -- THEY HAD A CONTRACT TO ACTUALLY INSTALL THOSE METERS. 
          THERE WERE SOME CHALLENGES WITH THE CONTRACT AND THEY BROUGHT THOSE IN-HOUSE. AND WHEN THEY BROUGHT THOSE INSTALLATIONS IN-HOUSE, THEY BROUGHT ON APPROXIMATELY 105 POSITIONS INTO THEIR POSITION COMPLEMENT. THE PROGRAM'S BEEN CONCLUDED, SO ONCE WE TALKED TO THEM, THEY WERE WILLING TO HOLD THEIR VACANCIES TO SEE HOW THE PROGRAM WAS GOING TO STABILIZE, AND WE MADE THE RECOMMENDATION THAT YOU ARE KEEPING A LARGE CONTINGENT OF THAT, WE LOOKED A THEIR PERFORMANCE METRICS, AND WE AGREE THERE IS A NEED FOR SOME OF THOSE POSITIONS. THEY'RE SEEING INCREASE IN NONROUTINE SERVICE CALLS BECAUSE THEY HAVE BETTER DATA TO ANALYZE BECAUSE THEY CAN SEE WHERE LEAKS ARE HAPPENING, THEY CAN SEE WHERE METERS ARE FAILING, AND SO THEY HAVE A LO LOT OF OTHER NONROUTINE CALLS THAT THEY NEED TO RESPOND TO. WE AGREE THERE'S A CONTINGENT OF THAT STAFF TO BE RETAINED BUT WE ALSO THOUGHT THERE'S AN OPPORTUNITY WITH THE 48 VACANCIES THERE TO ELIMINATE THOSE VACANCIES AND USE THOSE SAVINGS TO 
          FUND THE ADDITIONAL 37 POSITIONS. >> WHYTE: GOT IT. 
          AND THEN LAST QUESTION, JUST TO MAKE SURE I HAVE THIS RIGHT IN THOSE LAST TWO YEARS, ANYTHING MORE THAN THE MINIMUM RATES OF THE 5% REQUIRE REVIEW BY PUBLIC UTILITIES STAFF AND THEN JUST A BRIEFING TO COUNCIL, BUT NO -- NO VOTE OF COUNCIL IS NECESSARY TO ACTUALLY RAISE IT TO 7%. 
          >> ELLIOTT: THAT'S CORRECT. AND WE HAVE DONE THAT IN 
          THE PAST. >> WHYTE: OKAY. THANKS. 
          THANKS SO MUCH. >> MAYOR JONES: ANY OTHER OF MY COLLEAGUES WOULD 
          LIKE TO PROVIDE COMMENT? COUNCILWOMAN SPEARS? >> SPEARS: THANK YOU, MAYOR. THANK YOU, TROY, FOR THE PRESENTATION. 
          I JUST HAD A COUPLE OF QUESTIONS MYSELF. CAN YOU HELP ME UNDERSTAND, IF WE'RE GOING TO LOOK AT THIS IN TWO YEARS ANYWAY, WHY AREN'T WE JUST DOING TWO YEARS, OR ONE, OR SOMETHING WHERE WE CAN 
          LOOK AT MANAGED EXPECTATIONS. >> ELLIOTT: WELL, BASED ON OUR REVIEW, WE AGREE THAT BASED ON THEIR BUDGET -- I MEAN, THEY'RE GOING TO CONTINUE TO EXPERIENCE INFLATION. O & M BUDGET, BASED ON THE INCREASES THAT I'VE MENTIONED TO THAT BUDGET THEY'RE GOING TO CONTINUE THE FIRST TWO YEARS AND INTO THE THIRD AND THE FOURTH YEAR. 
          SO THERE IS GOING TO BE A NEED IN THAT THIRD AND THE FOURTH YEAR FOR THE RATE SUPPORT BASED ON WHAT THEY'RE ADOPTING IN 2026. 
          >> SPEARS: SO ARE WE -- I GUESS THAT'S GOING INTO MY NEXT QUESTION. 
          ARE WE BUILDING A SUSTAINABLE FINANCIAL MODEL? IF YOU LOOK AT SLIDE 20 AND YOU SAY LOOK AT ENHANCING YOUR BUDGET DEVELOPMENT PRACTICES, AND THEN WE'RE LOOKING AT HOW WE'RE GOING TO BUILD A SUSTAINABLE FINANCIAL MODEL, BUT IS THIS BASED ON INCURRING RATE INCREASES FOR FUTURE BUDGETS OR IS THIS -- HELP ME UNDERSTAND WHY YOU'RE SAYING THAT THERE TO LOOK AT HOW YOU'RE DEVELOPING YOUR BUDGET, 
          THAT MAKES ME A LITTLE ANXIOUS. >> ELLIOTT: AND THAT'S REALLY SPECIFIC TO THE PLAN OF FINANCE. WE'RE TALKING ABOUT -- AND AS I MENTIONED, THEY HAVE VERY CONSERVATIVE ASSUMPTIONS WHEN IT COMES TO THEIR DEBT MANAGEMENT. WHEN THEY ARE BUDGETING THE ISSUANCE OF THEIR DEBT VERSUS WHEN THEY ACTUALLY ISSUE THAT DEBT, BECAUSE IT IMPACTS THEIR DEBT SERVICE. SO UNDER THE PAST CFO, 
          [00:40:02]
WHICH IS A REASONABLE EXPECTATION TO THE WAY THEY MANAGED THEIR BUDGET, THEY HAVE THAT CONSERVATISM BUILT IN WITH THE EXPECTATION THAT THEY ALWAYS OUTPERFORM IT. SO THIS SPECIFIC RECOMMENDATION IS SAYING, HEY, WORK WITH YOUR FAS, LOOK AT THAT CONSERVATIVISM, IS THERE A WAY TO BUILD THAT INTO THE BUDGET WHERE YOU'RE NOT BUDGETING CONSER VAF TISM, BUT, FOR EXAMPLE, I DON'T KNOW IF THIS IS A VIABLE OPTION, BUT PUTTING IN A ROLLING DEBT SERVICE FUND, THAT CAN BE SOME CERTAINTY INTO THEIR DEBT COVERAGE. SO THIS IS SPECIFIC TO 
          THE PLAN OF FINANCE. >> SPEARS: OKAY. SLIDE 21, CAN YOU HELP ME UNDERSTAND THE IMPACT IT WILL HAVE WHEN WE ARE MOVING TO THE 150% POVERTY GUIDELINE -- 
          >> ELLIOTT: SO THIS IS TWO DIFFERENT PIECES -- UPLIFT PROGRAM IS A PROGRAM THAT SETS THE GUIDELINES FOR, YOU KNOW -- FOR THE REQUIREMENTS TO PARTICIPATE. 
          THERE'S ALSO AN UPLIFT -- UPLIFT DISCOUNT PROGRAM, THAT UPLIFT DISCOUNT IS ACTUALLY PROVIDED THROUGH AN ADMINISTRATIVE FEE OR A SUBSIDY ON THE BILL. 
          AND MY UNDERSTANDING, THAT SUBSIDY OR THAT ADMINISTRATIVE FEE IS NOT GOING TO CHANGE. THEY'RE GOING TO USE THAT TO BASICALLY WITHIN THAT CURRENT -- 150. SEPARATELY, PROJECT AGUA AND THE PLUMBERS TO PEOPLE WITH THE INCREASE TO 200,000, THAT IS BUILT INTO THEIR O AND M WHICH 
          IS BUILT INTO THE RATE SUPPORT. >> SPEARS: WOULD YOU MIND GOING OVER THE CAPITALIZED COSTS AGAIN FOR ME. 
          >> ELLIOTT: YES, MA'AM. SO, YOU KNOW, LIKE WE AS A CITY, WHEN WE HAVE A PROJECT AND WE HAVE OUR CAPITAL DELIVERY TEAM, AND THEY ACTUALLY WORK ON THOSE PROJECTS, WE CHARGE THE COST OF THEIR SALARIES TO THOSE PROJECTS, WE CAPITALIZE THEM. SIMILARLY IN THIS CASE UNDER THE AMI PROGRAM, THEY HAVE THOSE POSITIONS, THEY'RE WORKING ON THE INSTALLATION, THEY CAN ACTUALLY CAPITALIZE THOSE AS PART OF THE CAPITAL PROJECTS. NOW ONCE THOSE PROJECTS ARE COMPLETED, THEN THERE'S NOTHING TO CHARGE THEM TO ANYLONGER, THEY BECOME PART OF THE OPERATING BUDGET. SO THAT'S WHY YOU SEE THE TRANSITION BETWEEN THE TWO LINES ON THEIR O & M BUDGET. 
          >> SPEARS: THAT WAS ALL JUST MOVING THOSE POSITIONS OUT OF THE CAPITALIZATION OF THE PROJECT, JUST THOSE POSITIONS RESULTED IN 
          THAT? >> ELLIOTT: I BELIEVE SO. 
          I THINK THERE WERE 105 POSITIONS, THE POSITION COMPLEMENT DEDICATED TO AMI AND THOSE MOVE INTO THE OPERATING BUDGET, OF WHICH WE'RE RECOMMENDING 
          48 BE ELIMINATED. >> SPEARS: OKAY. IF THE PROJECTED REVENUES EXCEED THE EXPECTATION, WHAT ARE WE GOING TO DO WITH THE EXCESS? IS THERE A WAY TO COMMIT THAT TO SOMEHOW REDUCING THE RATE -- I MEAN, WHAT 
          DO WE DO IF WE EXCEED EXPECTATIONS THEN? >> ELLIOTT: TWO THINGS. 
          AND I MAY NEED SAWS TO STEP UP HERE BASED ON THEIR PLANS. 
          BUT AS A -- IF THEIR REVENUES ARE INCREASED, AS IMENTIONED, IT FLOWS THROUGH THE FLOW OF FUNDS AND THEN IT HITS THAT BOTTOM BUCKET. 
          THEY CAN USE THAT MONEY TO ACTUALLY -- FOR CASH FUNDING VERSUS DEBT FUNDING, THAT REDUCES THEIR IMPACT FOR FUTURE RATE INCREASES, OR WHEN WE COME BACK IN THE SECOND TWO YEARS, THAT'S SOMETHING WE CAN LOOK AT AS WELL TO SEE HOW THEY PERFORMED AND WE'LL TAKE THAT INTO CONSIDERATION AS WE CONSIDER ANY POTENTIAL RATE INCREASES FOR THOSE LATTER TWO 
          YEARS OF THE FULL RATE PLAN. >> SPEARS: OKAY. 
          AND THEN WHAT -- ON THAT NOTE, ON SLIDE 23, THE ACCOUNTABILITY MEASURES, WHAT IS OUR ENFORCEABILITY, OR HOW DO WE -- IF -- IF THEY'RE NOT MEETING EXPECTATIONS FOR SOME REASON, WHAT ACTIONABLE ITEMS DO WE 
          REALLY HAVE ACCORDING TO THAT. >> ELLIOTT: UNDER THE CITY CHARTER, WE SET RATES, AND THAT -- BASED ON THE ACTION THAT YOU TAKE ON THE 18TH, THESE ACCOUNTABILITY MEASURES WILL BE ENGRAINED IN THE 
          ORDINANCE. >> SPEARS: OKAY. >> ELLIOTT: AND TO THE EXTENT THEY'RE NOT MET, WE WILL USE THAT TO GUIDE US IN OUR EVALUATION, AND TO THE EXTENT THEY'RE NOT MET, THERE WOULD NOT BE ANY RATE INCREASE ABOVE 
          THE GUARANTEED MINIMUM. >> SPEARS: OKAY. SO WE CAN CLAWBACK. 
          >> ELLIOTT: MAYBE NOT CLAW IT BACK, BECAUSE IT'S GOING TO BE A GUARANTEED MINIMUM THAT WAS APPROVED, BUT CERTAINLY NO INCREASE 
          ABOVE THAT. >> SPEARS: OKAY. THANK YOU. 
          I APPRECIATE IT. >> WALSH: MAYOR, JUST COUNCILWOMAN, JUST IN A -- LET ME ADD A LITTLE BIT TO WHAT TROY SAID. THAT MINIMUM IS IMPORTANT 
          [00:45:04]
BECAUSE OF THE CAPITAL PLAN THAT SAWS HAS. AND PART OF THE ACCOUNTABILITY OF COMING BACK TO THE CITY AND THEN PRESENTATION TO THE COUNCIL IS THAT THE -- SAWS WILL HAVE A BETTER PICTURE FOR WHAT THAT CAPITAL LOOK LIKE IN TOTAL IN '28 AND '29, ABOUT 2/3 OF THAT CAPITAL BUDGET RIGHT NOW IN '28 AND '29 ARE IDENTIFIED PROBABILITIES AND A WHOLE -- PROJECTS AND A WHOLE BUNCH OF THEM ARE OVER $30 MILLION SO I WOULD EXPECT THAT MR. PUENTE AND THE SAWS STAFF IN ADVANCE OF 2029 WILL BEGIN THE PROGRAMMING AND POTENTIALLY DESIGN OF THOSE PROJECTS, SO PART OF THAT IS THE NEXUS BETWEEN SETTING A FLOOR AND A CEILING. IF -- TO ANSWER YOUR QUESTION, IF REVENUE IS GOING LIKE GANG BUSTERS FOR THE FIRST TWO YEARS, THEN   -- AND THEY'VE GOT TO COME BACK AND SHOW THAT TO THE PUBLIC UTILITIES STAFF, PUBLIC UTILITY HAS GOT TO SUBMIT THAT TO THE COUNCIL, THEN THEY MAY MITIGATE A DEBT ISSUANCE IF THEY'VE GOT THE CASH, BUT THE OPPOSITE COULD BE TRUE ALSO. MAYBE THEY WERE -- MAYBE UNFORESEEN CONDITIONS AFFECT REVENUE, THEY STILL HAVE THOSE LARGE CAPITAL PROJECTS THAT ARE $30 MILLION AND OVER THAT THEY HAVE PROGRAMMED IN THEIR CAPITAL BUDGET. 
          BUT THE CHECK-IN POINT WITH THE CITY AND ULTIMATELY TO THE COUNCIL IS A CHANCE TO REGULATE IT. WE'RE JUST SETTING A 
          WINDOW FRAME. >> SPEARS: SORRY. THANK YOU. 
          I HAVE ONE MORE QUESTION. SINCE THIS -- IT'S MY UNDERSTANDING THIS WILL ADDRESS SOME DEFERRED MAINTENANCE FOR -- IN AUDIO] -- AROUND THE CITY. DO WE HAVE ANY IDEA OF A 
          PLAN FOR THE OTHER HALF OR NUMBERS OR ANYTHING? >> 
          >> SPEARS: OKAY. >> YOUR QUESTION WAS THAT THIS CAPITAL PROGRAM WILL 
          PAY FOR HALF OF -- >> SPEARS: IT'S MY UNDERSTANDING THAT THIS HANDLES ABOUT HALF OF OUR DEFERRED MAINTENANCE AS IT STANDS RIGHT NOW. 
          THIS WILL ADDRESS THAT? >> NO. THIS IS A CAPITAL 
          PROGRAM. MAINTENANCE IS O & M. >> SPEARS: UH-HUH. 
          BUT PART OF THAT'S DEFERRED MAINTENANCE, RIGHT? 
          >> WELL, THIS IS A FOUR-YEAR CAPITAL PROGRAM. 
          CAPITAL PROGRAM IS TO DO AS MUCH WORK AS WE CAN DO ON THESE WASTEWATER TREATMENT PLANTS, ESPECIALLY THE WASTEWATER PLANTS. 
          IT'S NOT DEFERRED MAINTENANCE, IT'S AN UPGRADE OF THE TREATMENT PLANTS TO MAKE SURE THEY CAN TREAT THE SEE WAJ THAT COMES IN THERE, THAT WE DON'T VIOLATE THE PERMIT THAT WE HAVE, THAT WE'RE ABLE TO EXPAND THEM 
          BASED ON THE GROWTH THAT WE'RE EXPERIENCING. >> SPEARS: SO WE'LL BE COMPLETELY UPGRADED, WE WON'T NEED TO COME BACK AND ASK FOR ANOTHER HUGE RATE INCREASE AT THE END OF THE FOUR YEARS, IS THAT SORT OF WHAT YOU'RE 
          REPRESENTING? >> NO, NOT AT ALL. THIS WILL ADDRESS THE SPECIFIC PROJECTS THAT WE HAVE IDENTIFIED FOR THE COUNCIL THROUGH THESE FOUR YEARS. THERE'S GOING TO BE OTHER NEEDS AFTER THAT. 
          >> SPEARS: THERE ARE. >> EVERY YEAR, THINGS GET OLDER. 
          AND THINGS NEED TO BE LOOKED AT AND ADDRESSED. >> SPEARS: I THINK WHAT I'M GETTING AT IS CAN YOU FORECAST THAT NOW FROM WHAT YOU'RE GOING TO NEED 
          IN FOUR YEARS AGAIN? >> WE CAN FORECAST, BUT I WOULDN'T PUT A WHOLE LOT OF EMPHASIS ON THE NUMBERS, BECAUSE THEY CHANGE SO DRASTICALLY 
          FOUR YEARS OUT FROM NOW. >> SPEARS: OKAY. OKAY. 
          THANK YOU. >>  THANK YOU. >> MAYOR JONES: THANK YOU. COUNCILMEMBER ALDARETE GAVITO. 
          >> GAVITO: THANKS FOR THE PRESENTATION, TROY, AND THANKS FOR DOING Y'ALL'S DUE DILIGENCE, AND I THINK HAVING THESE CHECKS AND BALANCES IN PLACE IS IMPORTANT, CONSIDERING THAT WE'RE MAKING SUCH A POTENTIALLY BIG ADJUSTMENT TO RESIDENTS' BILL. I THINK IT'S NO SECRET THAT I'M STILL STRUGGLING TO JUSTIFY A RATE INCREASE. 
          YOU KNOW, WATER IS RUNNING DOWN OUR STREET. ACTUALLY, YESTERDAY, I WAS ON MY WAY HOME FROM H-E-B AND JUST WATCHING WATER RUN DOWN HILDEBRAND. SO I -- YOU KNOW, I HAD MENTIONED IT IN AN OP ED THAT WATER SAWS INVENTORY AND WHEN A BUSINESS HEMORRHAGES THEIR INVENTORY AT SCALE, THEIR ANSWER CANNOT BE TO CHARGE CUSTOMERS MORE, IT NEEDS TO FIX OPERATIONS. AND SO EARLIER THIS WEEK, THERE WAS A MAJOR WATER LEAK ON CAMPMENT AND CLUB, THERE WAS THE USUAL BACK AND FORTH THAT WE SEE ABOUT THIS, FIRST SAWS BLAMED PUBLIC WORKS SAYING PUBLIC WORKS DIDN'T HAVE THE LOCATES, AND THEN PUBLIC WORKS CONFIRMED THAT THEY DID 
          [00:50:04]
PROVIDE THE LOCATES. AND I KNOW WE HAD BOARD MEMBERS CALLING MY COLLEAGUES, SAYING, HEY, IT WAS A CONTRACTOR. BUT I THINK WE'RE MISSING THE POINT. BECAUSE DURING MY TENURE, AND I'VE ONLY BEEN ON COUNCIL, WHAT, THREE YEARS. YEAH, RIGHT AROUND THREE YEARS, THERE HAVE BEEN FOUR MASSIVE WATER LEAKS AROUND JEFFERSON HIGH SCHOOL. THE FIRST ONE HAPPENED DECEMBER OF 2023 WHEN COUNCILWOMAN ROCHA GARCIA WAS ON COUNCIL WITH ME. AND WILSON BOULEVARD WAS LITERALLY LIKE A LAKE. IT WAS MASSIVE. THERE WAS -- IT WAS HUGE WATER LEAK, I MEAN, JUST WATER FLOODING THE STREETS. 
          AND THEN IN MAY 2025, I MEAN, I HAVE THE PICTURE, AN ELDERLY MAN IS DRIVING HIS TRUCK AND FALLING INTO A SINKHOLE IN THE EXACT SAME LOCATION. 
          AND THEN AT THAT POINT, YOU KNOW, AGAIN, WE GO IN THIS CIRCLE OF, NO, IT'S SAWS, NO, IT'S PUBLIC WORKS, AND WE GO INTO THIS FINGER POINTING. 
          WE SAW THE FINGER POINTING ON THE ST. MARY'S STRIP. 
          THEN IN JANUARY 2025, WE LITERALLY HAD TO SHUT OFF WATER -- OR YOU ALL HAD TO SHUT OFF WATER TO JEFFERSON HIGH SCHOOL IN THE MIDDLE OF FLU SEASON, AND THEN THE BLAME IS POINTED TO GOOGLE FIBER. SO I FEEL LIKE WE JUST NEED TO TAKE A STEP BACK AND SEE WHAT'S GOING ON. IS IT TRULY AN OPERATIONS PROBLEM OR MAYBE IT'S A COMMUNICATION PROBLEM? LIKE SOMETHING IS GOING ON, YOU KNOW, AND HOW DO I EXPLAIN TO MY RESIDENTS THAT, YEAH, IT'S OKAY, WE'VE SEEN FOUR MASSIVE WATER LEAKS AROUND JEFFERSON HIGH SCHOOL AND THAT'S JUST WHAT YOU'VE GOT TO LIVE WITH. I DON'T THINK THAT'S FAIR FOR ANY OF US TO HAVE TO SAY TO OUR RESIDENTS. AND I FEEL THAT THERE'S A PATTERN HERE, AND QUITE FRANKLY, IT'S UNACCEPTABLE. 
          YOU KNOW, I -- THE SIGNIFICANT LOSS OF WATER DOES POUR INTO RESIDENTS' BILLS AND THAT'S NOT OKAY. I'M HAVING A HARD TIME ASKING OUR MRS. MARTINEZ TO MAY MORE WHEN THEY'RE SEEING THESE WATER LEAKS LITERALLY FLOOD THEIR STREETS. IT'S JUST NOT OKAY. 
          AND WE KNOW THAT RESIDENTS EVERYWHERE ARE FIGURING OUT HOW TO BUDGET IN AN UNFORGIVING ECONOMY. THIS IS A TOUGH TIME FOR EVERYONE. EVERYONE IS FEELING THE SQUEEZE AT THE GAS PUMP. 
          WE'RE ALL FEELING THE SQUEEZE AT THE GROCERY STORE. 
          AGAIN, I'VE GONE ON THE RECORD. I'M NOT AGAINST UTILITIES COMING AND ASKING FOR WHAT THEY NEED. YOU KNOW, APPROVED THE LAST CPS RATE INCREASE BECAUSE THERE WAS A PLAN THAT I WAS CONFIDENT IN. 
          I'M NOT CONFIDENT IN THIS PLAN, ESPECIALLY WHEN I'M SEEING I INSTANCES LIKE I SAW THIS WEEK.  I DID HAVE ONE QUESTION. IF THIS RATE ADJUSTMENT -- LET'S JUST SAY HYPOTHETICALLY THIS RATE ADJUSTMENT DOESN'T PASS, WHAT IS SAWS' PLAN TO REPLACE PIPES IN OUR AREA. 
          AND LET ME BACK UP AND SAY, I THINK AS THE MAYOR'S TEAM POINTED OUT, 70% OF THE WATER THE PIPE REPLACEMENTS WILL BE IN DISTRICTS 1, 10, 2, 3 AND 4. AND TO ME, THAT IS A SLAP IN THE FACE. 
          LIKE HOW COME -- YOU KNOW, AGAIN, WE'RE SEEING THESE MASSIVE WATER LEAKS AROUND THOMAS JEFFERSON HIGH SCHOOL AND WE'RE LOOKING THE OTHER WAY. 
          SO GO AHEAD. >> AND YOUR QUESTION IS, WHAT WILL WE DO IF WE 
          DON'T GET THE RATE INCREASE. >> GAVITO: UH-HUH. 
          >> IF WE DON'T GET THIS RATE INCREASE, WE'RE GOING TO BE BACK HERE IN THE FALL ASKING FOR A RATE INCREASE FOR '27, '28 AND '29. 
          THESE ARE NEEDS THAT HAVE TO BE MET, ALTHOUGH IT IS VERY FRUSTRATING TO SEE THESE BREAKS, HAVE WATER FLOWING DOWN THE STREET. TO ADDRESS THEM, WE HAVE TO SPEND MONEY TO CHANGE OUT THOSE PIPELINES. WE HAVE TO SPEND MONEY ON THE REPLACEMENT PROJECT THAT HELPS US GET AHEAD AND IDENTIFY THOSE LINES THAT NEED TO BE CHANGED OUT. WITH ALL DUE RESPECT TO EVERY COUNCIL DISTRICT HERE, WE DO NOT LOOK AT A COUNCIL DISTRICT AND SEE IF PIPES IN THAT COUNCIL DISTRICT NEED TO BE CHANGED OUT. 
          WHAT WE LOOK AT IS THE AGE OF THE PIPE, THE MATERIAL OF THE PIPE AND THE SOIL CONDITIONS AROUND IT. THE WOODLAWN AREA HAPPENS TO BE ONE OF THOSE AREAS THAT DOES EXPERIENCE A LOT OF BREAKS BECAUSE OF 
          THE AGE OF THE PIPES. >> GAVITO: RIGHT. >> AND THE MATERIALS AND THE SOIL MATERIALS OUT THERE. AND SO THIS IS A PROGRAM, IT'S AN INITIATIVE THAT WE HAVE TO TRY TO ADDRESS THESE PROBLEMS THAT WE ARE EXPERIENCING. I'M VERY HAPPY TO REPORT SINCE THE HEIGHT OF 2023, WHICH WAS THE WORST YEAR OF OUR -- THE NUMBER OF LINE BREAKS AND THE AMOUNT OF WATER THAT WE LOST, WE HAVE A 19% REDUCTION IN THOSE FOUR SHORT YEARS BECAUSE WE HIRED MORE CREWS TO GO OUT INTO THE STREETS AND FIX THOSE BREAKS, OUR RESPONSE TIME WENT FROM A VERY ABYSMAL 14 DAYS, 
          [00:55:03]
TOTALLY UNACCEPTABLE, TO IF YOU REPORT A LEAK TODAY, WE WILL BE OUT THERE TOMORROW FIXING IT. THAT HAS DRIVEN THAT NUMBER DOWN. OUR BOARD HAS GAVE US A VERY AGGRESSIVE GOAL TO MEET BY 2035. WE ARE WELL ON OUR WAY TO MEETING THAT GOAL. 
          WE'VE BEEN SO SUCCESSFUL IN MEETING THAT GOAL, THAT EVEN TROY AND HIS TEAM HAS SAID, WELL, MAYBE YOU DON'T NEED AS MUCH MONEY BECAUSE YOU'RE DOING SO GOOD. WE WERE ABLE TO CONVINCE THEM OTHERWISE, SO THAT'S NOT PART OF THIS RECOMMENDATION, BECAUSE OF THAT NEED OF THE CAPITAL PROGRAMS. SO COUNCILWOMAN, I KNOW THERE'S A LOT OF FRUSTRATION THERE. I KNOW THAT THERE'S ISSUES THERE. 
          WE HAVE TO ADDRESS THEM, AND WE FEEL THAT WE CAN ADDRESS THEM WITH THIS 
          RATE SUPPORT. >> GAVITO: THANK YOU. THANK YOU SO MUCH FOR THAT INFORMATION. AND I DEFINITELY AGREE WITH YOU, YOU KNOW, IT IS GOING TO HAVE TO TAKE INVESTMENT IN ORDER TO FIX THE WATER PIPES, BUT, AGAIN, LIKE I MENTIONED, YOU KNOW, AS THE MAYOR'S TEAM POINTED OUT, 70% OF THE FUNDING TO FIX THE WATER PIPES ARE GOING TO DISTRICTS 1, 10, 2, 3 AND 4, AND TO ME, IT'S JUST MIND BOGGLING HOW WE KNOW THAT THE WOODLAWN, JEFFERSON AREA, MONTE CELLO AREA, AGAIN, WE SEE THESE MASSIVE WATER LEAKS AGAIN AND AGAIN AND AGAIN, AND IT'S NOT PRIORITIZED TO BE FIXED. 
          I ALSO KNOW THAT -- I JOIN MY COLLEAGUES IN DISTRICTS 9, COUNCILWOMAN SPEARS IN DISTRICT 10, COUNCILMAN MARC WHYTE TO ASK FOR AN AUDIT. 
          WHEN IS THAT AUDIT SUPPOSED TO BE READY. >> THE MAYOR REFERRED TO IT. IT WAS -- OUR -- THE COMMITTEE THAT OUR BOARD CREATED TO LOOK OVER CAPITAL PROGRAMS HAS LOOKED AT IT, THEY'VE ALREADY DISCUSSED AND ADDRESSED IT. OUR FULL BOARD IS GOING TO LOOK AT IT, SO RIGHT AFTER THIS NEXT MONTH'S BOARD MEETING, IT WILL BE 
          FINAL WHEN THEY ACCEPT IT. >> GAVITO: AND SO THAT WOULD BE WHEN Y'ALL'S BOARD ACCEPTS THE AUDIT, RIGHT? 
          >> THEY WILL LOOK AT IT, WE WILL DISCUSS IT AND IT WILL BE OFFICIALLY GIVEN TO THEM AND IT'S UP TO THEM TO TELL US WHAT THEY THINK ABOUT IT, WHAT MORE THEY MAY WANT OUT OF IT AND DISCUSS THE DETAILS OF IT. 
          >> GAVITO: OKAY. THAT'S GOOD TO KNOW. SO THEN WHY WOULDN'T WE INCREASE -- 
          >> BECAUSE THE AUDIT WAS NOT FOR THE SPECIFIC IDEAS OF WHETHER OR NOT WE NEED THESE PROJECTS. THE NEED OF THOSE PROJECTS HAS BEEN WELL DOCUMENTED THAT WE NEED TO REHABILITATE THESE WASTEWATER TREATMENT PLANTS, OTHERWISE WE FACE POTENTIAL VIOLATIONS FROM TCEQ, FROM THE EPA, AND SO THE AUDIT WILL NOT TELL US WHETHER OR NOT THOSE THINGS NEED TO HAPPEN. IT WILL TELL US WHETHER OR NOT WE'RE DOING IT THE 
          RIGHT WAY. >> GAVITO: I SEE. NO, I MEAN, I DEFINITELY THINK THAT -- YES, I KNOW THAT THE MOUNTING PRESSURES THAT SAWS IS FACING, AND WE WANT TO BE SUPPORTIVE OF ALL THE THINGS THAT SAWS NEEDS TO DO TO BE A WELL-RUN UTILITY FOR THE RESIDENTS, BUT TO ME, IT MAKES SENSE TO BE ARMED WITH THE COMPLETE INFORMATION THAT YOU WOULD GET FROM AN AUDIT BEFORE WE MAKE A DECISION THAT WOULD DRAMATICALLY 
          ENTS. THANK YOU, MAYOR. >> MAYOR JONES: THANK YOU. COUNCILMEMBER MEZA GONZALEZ. 
          >> GONZALEZ: THANK YOU, MAYOR. THANK YOU TO THE PRESENTATION AND, TROY, TO YOUR TEAM FOR THAT COMPREHENSIVE REVIEW. 
          I THINK YOU SQUEEZED EVERY DROP OUT OF THAT LEMON OVER THE LAST MONTH OR SO, SO I APPRECIATE ALL OF THAT WORK. AND TO THE SAWS TEAM AS WELL, THANK YOU FOR WORKING WITH OUR TEAM TO GET HERE. 
          I HAD A LOT OF RAIN THE DRAIN TOURS. I REALLY MADE SURE THAT -- I WANTED TO START WITH MY RESIDENTS, RIGHT, TO BETTER UNDERSTAND WHAT OUR UTILITY IS, WE KIND OF TAKE THAT FOR GRANTED, RIGHT? LIVING HERE, JUST LIKE WE TAKE THE RIVERWALK FOR DWRABTED IF WE'VE LIVED HERE LONG ENOUGH. I REALLY WANTED TO START THERE, SO WE HAD ABOUT 80 RESIDENTS TOTAL COME OUT TO THOSE TWO TOURS, AND IT WAS GREAT BECAUSE IT WAS THAT FIRSTHAND EXPERIENCE OF SEEING THE WORK THAT SAWS DOES FOR OUR RESIDENTS AND FOR OUR CITY, BUT I THINK IT ALSO HELPED ME REALIZE THE REALITIES THAT SAWS FACES WITH AGING AND INADEQUATE INFRASTRUCTURE. 
          AND THE REAL COSTS, I THINK, THAT RESIDENTS FACE, WHETHER IT'S FROM LEAKS OR FLOODS, IF WE DON'T ACT QUICKLY TO MAKE THOSE IMPROVEMENTS. 
          AND SO I THINK THIS IS AN IMPORTANT CONVERSATION. A FEW QUESTIONS, ON SLIDE 23, AND MY COLLEAGUE MIGHT HAVE ASKED THIS -- I MIGHT BE ASKING IT AGAIN, BUT HOW OFTEN -- MEASURES, HOW OFTEN DO WE EXPECT FOLLOW-UP FROM SAWS TO ASSESS WHETHER 
          THEY'RE MEETING THOSE GOALS. >> ELLIOTT: SO IF THEY'RE 
          [01:00:01]
MOVING INTO THE TWO YEARS '28 AND '29, THEY'LL PROBABLY BE BACK IN A 
          YEAR. >> IT'S HARD TO HEAR YOU, I'M SORRY. 
          >> ELLIOTT: THEY WOULD BE BACK IN ABOUT A YEAR IN ADVANCE OF 2028, AND WE WOULD START THAT PROCESS OF SITTING DOWN WITH THEM REVIEWING, IN THE EVENT THEY COME BACK FOR A RATE INCREASE ABOVE AND BEYOND THOSE MINIMUM GRAIRN 
          TEES. >> GONZALEZ: AND IS THERE A PERFORMANCE REVIEW 
          BUILT INTO ANY OF THESE MEASURES. >> ELLIOTT: PERFORMANCE REVIEW IN TERMS OF -- WE DO -- IT'S GOING TO BE A MINI RATE REVIEW ALL OVER AGAIN BASED ON ALL THOSE ITEMS I SHARED WITH YOU ON THE FRONT OF THE 
          PRESENTATION. >> GONZALEZ: OKAY. >> ELLIOTT: WE DON'T JUST DO THIS WHEN A RATE INCREASE COMES TO US. WE LOOK AT THEM WHEN THEY ADOPT THEIR ANNUAL BUDGETS, WHEN THEY HAVE THEIR FINANCI FINANCIAL AUDITS. WE DO THIS CONTINUOUSLY ON A YEAR-BY-YEAR BASIS. 
          >> GONZALEZ: AND IS THAT SOMETHING YOU BRING TO COUNCIL? 
          >> ELLIOTT: NO. BASICALLY THE PUBLIC UTILITIES TEAM DOES THAT 
          INDEPENDENTLY. >> GONZALEZ: ON -- I HAD A QUESTION ON THE SENIOR LIEN DEBT ASSUMPTION, I THINK THAT WAS ON SLIDE 22. 
          DOES THAT -- I GUESS WHAT ARE THE LONG-TERM CONSEQUENCES OF REMOVING 
          THAT SENIOR LIEN DEBT? >> ELLIOTT: I MEAN, LONG TERM, IT CAN RESULT IN LESS FLEXIBILITY FOR SAWS. BUT HISTORICALLY, LIKE WE TALKED ABOUT, I FORGOT HOW MANY YEARS -- I THINK 12 YEARS -- GOING 12 YEARS BACK, THEY HAVE NOT ISSUED SENIOR LIEN DEBT, SO HISTORICALLY THEY HAVEN'T ISSUED IT, SO WE DON'T SEE IT AS A PROBLEM. 
          BUT IT WOULD REDUCE FLEXIBILITY IN THE FUTURE IN THE EVENT THEY NEEDED 
          TO USE THAT SENIOR LIEN DEBT. >> GONZALEZ: OKAY. 
          THANK YOU. AND ON SLIDE 18, I THINK THERE WAS -- LET ME SEE, WHERE IS IT? SLIDE 15, THE 3.2 BILLION, I MEAN, THAT'S KINDER OF LIKE DOUBLE OUR BOND PACKAGE, RIGHT, THAT WE DO AS A CITY, SO IS THERE A MICHAEL SHANNON-LIKE PERSON OVER THERE THAT'S 
          FOCUSED ON THESE CAPITAL PROJECTS SPECIFICALLY? >> ELLIOTT: THERE IS. 
          THEY HAVE A WHOLE TEAM. WITHIN SAWS. >> GONZALEZ: IS THAT A NEW TEAM BECAUSE OF THE SIZE OF THIS, OR IS THAT A STANDARD -- 
          >> ELLIOTT: I DON'T THINK IT'S A NEW TEAM. >> NO, IT'S NOT A NEW TEAM. AND I WILL SAY THAT FOR THE PAST FIVE YEARS, WE HAD A $2.8 MILLION CAPITAL PROGRAM, MANY MORE PROJECTS IN THIS NEW FIVE-YEAR TIME PERIOD, LESS PROJECTS, BUT 3.2 BILLION, AS YOU SEE THERE. ANDREA, OUR COO AND HER TEAM HAVE BEEN RESPONSIBLE FOR THAT ALL DURING THIS TIME L,, AND SO WE FEEL CONFIDENT WITH OUR PAST AND WITH THIS AUDIT THAT WE'RE TALKING ABOUT, AND WITH -- AND THE CHAIRWOMAN IS HERE, HER CREATION AND THE CHAIR OF THAT SUBCOMMITTEE [INDISCERNIBLE] CREATION OF THAT SUBCOMMITTEE IS GOING TO LOOK AND OVERSEE OUR CAPITAL PROGRAM, WE'RE CONFIDENT WE'LL GET 
          THESE PROJECTS DONE ON TIME AND ON BUDGET. >> GONZALEZ: OKAY. 
          THANK YOU. AND I GUESS LAST ON SLIDE 22, TROY, OBVIOUSLY THIS COMPREHENSIVE REVIEW CAME WITH THESE RECOMMENDATIONS. 
          NOWHERE IN HERE ARE YOU RECOMMENDING NOT MOVING FORWARD ON A RATE 
          ADJUSTMENT. >> ELLIOTT: I AM RECOMMENDING MOVING FORWARD WITH THE RATE ADJUSTMENT AS PROPOSED ON THE BOTTOM OF THE TABLE. 
          SO FOR RESIDENTIAL, MOVING FORWARD WITH THE RATE ADJUSTMENT FOR 2026 OF 6.9%. 2027, 6.5. AND THEN THE MINIMUMS IN 
          '28 AND '29. >> GONZALEZ: RIGHT. I'M ASKING, TOO, IF IN THIS PROCESS, YOU FOUND THAT A RATE ADJUSTMENT IS NOT NECESSARY. 
          >> ELLIOTT: OH, NO, MA'AM. BASED ON OUR REVIEW, A RATE ADJUSTMENT IS NECESSARY TO SUPPORT THEIR PLANS. 
          >> GONZALEZ: OKAY. THANK YOU. THOSE ARE ALL MY QUESTIONS RIGHT NOW. I THINK, YOU KNOW, WE ALL KNOW THIS, THAT THE SERVICES THAT SAWS PROVIDE ARE NOT OPTIONAL. 
          THEY'RE JUST LIKE AS IMPORTANT AS OUR STOPLIGHTS AND OUR -- OUR STOP SIGNS AND OUR STREETLIGHTS, SO I THINK DEFERRING THIS DECISION IS NOT JUST GOING TO DELAY, BUT COMPOUND IT. AND I THINK KICKING THE CAN DOWN THE ROAD IS NOT SOMETHING THAT I KNOW MY RESIDENTS VOTED FOR ME TO DO. AND THESE ARE HARD DECISIONS. 
          IF THEY WERE EASY, I THINK A LOT OF US -- THERE WOULD BE MORE SEATS HERE AND A LOT MORE PEOPLE HERE, BUT THESE ARE TOUGH CHOICES THAT WE HAVE TO MAKE, AND SO I FEEL LIKE I HAVE DONE EVERYTHING I CAN IN MY HEAD AND CREATIVELY TALKING TO MY RESIDENTS IN ANY WHICH WAY THAT I CAN, WHETHER IT'S TOWN HALLS OR TOURS, AND SO, AGAIN, THANK YOU SO MUCH FOR YOUR TIME AND EFFORTS TO GET US HERE. THANK YOU. 
          THOSE ARE ALL MY QUESTIONS. >> MAYOR JONES: THANK 
          YOU. COUNCILMEMBER GALVAN IN. >> GALVAN: THANK YOU, MAYOR. THANK YOU, TROY, FOR THE PRESENTATION AND THANK YOU FOR OUR CONVERSATION YESTERDAY. GOSH, IT FEELS LIKE 
          [01:05:01]
ALREADY A MILLION HOURS PAST. MAYBE JUST ANTICIPATION FOR THE GAME. I DO WANT TO SAY THANK YOU FOR YOU AND YOUR TEAM FOR DOING THIS INCREDIBLE WORK, NOT ONLY THIS TIME BUT EVERY SINGLE TIME. 
          GOING TO THIS LEVEL OF DETAIL IS REALLY INCREDIBLE, FRANKLY, ESPECIALLY WITH THE SMALL TEAM OF Y'ALLS, TO GO THROUGH SUCH A MASSIVE CAPITAL PLAN THAT I'M SURE TAKES A LOT OF PEOPLE IN SAWS ORGANIZATION, SO I APPRECIATE THE REVIEW AND THE LEVEL OF GRANULARITY WITH IT. I ONLY HAVE ONE QUESTION FOR THE RECOMMENDATIONS PROPOSED. ON SLIDE 15 WITH THE PERSONNEL ADJUSTMENTS, WHAT IS DIFFERENCE IN THE POSITIONS THAT YOU'RE LOOKING AT OF RECOMMENDING [INDISCERNIBLE] VERSUS PROPOSED TO BE ADDED. 
          >> ELLIOTT: CAN YOU REPEAT THE QUESTION. >> GALVAN: WHAT'S THE DIFFERENCE OF THE POSITIONS THAT YOU'RE RECOMMENDING TO NOT HAVE 
          SAWS HIRE ON VERSUS -- >> ELLIOTT: THE 11 POSITIONS. 
          >> GALVAN: OR DIFFERENCE IN THE TYPE OF POSITIONS. 
          IS THERE DIFFERENT ROLES -- I GUESS WHAT I'M WONDERING, THE ONES THAT ARE UNFILLED RIGHT NOW, ARE THOSE NOT -- ARE THOSE NOT PART OF THE 37 
          THAT ARE LOOKING TO BE -- >> ELLIOTT: I CAN SHARE WITH YOU... WHAT SLIDE WAS IT? SO THESE ARE THE 37 POSITIONS THAT ARE BEING ADDED -- OR PROPOSED TO BE ADDED BY SAWS IN THEIR 
          2026 BUDGET. >> GALVAN: OKAY. >> ELLIOTT: AND YOU CAN SEE HERE, I WON'T READ THROUGH THEM, THESE ARE THE POSITIONS WE'RE ADDING, THESE ARE THE POSITIONS THEY REMOVED, AND THEN THE POSITIONS THAT ARE BEING ELIMINATED ARE TYPICALLY GOING TO BE YOUR -- KIND OF YOUR 
          FIELD REPRESENTATIVES. >> GALVAN: OH, I'M SORRY. 
          OKAY. MY UNDERSTANDING WAS THAT YOU WERE REMOVING 40 VACANCIES, THAT WERE DIFFERENT FROM THESE POSITIONS, BUT IT'S JUST 
          A NET DECREASE. >> ELLIOTT: THAT'S CORRECT. 
          >> GALVAN: MY MISTAKE. I'M GENERALLY SUPPORTIVE WITH THE RECOMMENDATIONS IN HERE FROM WHAT WE HAVE PROPOSED TO US AT THE MOMENT TO BRING IT DOWN AS MUCH AS POSSIBLE. YOU KNOW, I STILL HAVE MY OWN LEVEL OF DISCOMFORT WITH RAISING RATES ON ANYBODY. IT'S A DIFFICULT SELL, THE SAME PROBLEM WE HAVE WITH OUR BUDGET, PROVIDING THE BEST TO OUR COMMUNITY BUT I APPRECIATE SAWS, THE ORGANIZATION, FOR GETTING BACK TO ME ABOUT THE PROGRAM AND SOME OF THE DETAILED DATA THERE. 
          SEEING -- I MEAN, HAVING THE CURRENT 2100-PLUS PEOPLE CURRENTLY ENROLLED IN THE UPLIFT PROGRAM TO BE EXPANDED TO MORE PEOPLE BASED ON THE CAPACITY OF UPLIFT. I KNOW WE'RE WORKING ON MORE DETAILED INFORMATION. 
          I'M HOPING TO GET THAT SOONER THAN LATER. WE'RE LOOKING AT WAYS TO CONTINUE TO REDUCE THE IMPACT AND PROVIDE NO IMPACT TO OUR MOST VULNERABLE NEIGHBORS IN OUR COMMUNITY. I DO HAVE A COUPLE QUICK QUESTIONS -- IT MIGHT JUST BE THESE BIG TWO. LAST TIME I ASKED ABOUT THE CAP OF ENROLLMENT. 
          IF WE SEE FOLKS BELOW THE POVERTY LINE COMPARED TO WHAT WE'RE PROJECTING, ARE THEY ABLE TO STILL ENROLL, AND THE ANSWER IS YES. IS THAT STILL ACCURATE, GIVEN THE STRUCTURE OF UPLIFT? SEEING YES FROM GAVINO. 
          APPRECIATE THAT. DOES THAT INCLUDE ALSO -- I KNOW IT'S PRIMARILY FOR HOUSEHOLDS OR BASED ON HOUSEHOLDS. IS THAT PROPERTY OWNERS OR RENTERS, ARE THEY ELIGIBLE TO ENROLL IN THE UPLIFT PROGRAM? 
          >> NOT JUST PROPERTY OWNERS BUT RENTERS OF SINGLE-FAMILY HOMES. 
          THEY HAVE TO BE OUR CUSTOMERS TO BE ABLE TO HELP THEM. 
          NOW, WE ARE WORKING ON A PROGRAM TO TRY TO HELP APARTMENT DWELLERS IN THOSE SAME SITUATIONS. BUT THE PROBLEM IS THEY HAVE ONE METER AND WE CAN'T HAVE -- WE DON'T HAVE A DIRECT RELATIONSHIP WITH THEM. 
          BUT WE'RE TRYING TO WORK ON SOME PROGRAM LIKE THAT TO SEE IF WE CAN HELP THEM. 
          >> GALVAN: THAT WOULD BE GREAT TOO TO SEE WHAT THAT WORK WILL ENTAIL IN THE NEXT SEVERAL YEARS, WHETHER IT'S A FULL DETAILED PLAN OR WHATEVER IT MAY BE. 
          I DO THINK ABOUT THE SENIOR LIVING HOMES ALONG 151 AND EVEN IN THE WEST SIDE OF MY DISTRICT TOO. A LOT OF FOLKS ARE STRETCHING THEIR INCOME AS MUCH AS POSSIBLE. I WOULD BE INTERESTED IN SEEING WHAT THAT LOOKS LIKE 
          IN THE FUTURE. >> PUENTE: SURE. >> GALVAN: I APPRECIATE THAT. I THINK ONE OF THE OTHER THINGS I HAD -- THIS IS WHAT Y'ALL SENT TO ME BACK IN FEBRUARY WHEN WE HAD THE FIRST CONVERSATION ABOUT CONSERVATION PROGRAMS. INTERESTED IN SEEING -- THIS IS MORE CAPITAL MAINTENANCE, BUT OVERALL IN SAWS, IN YOUR LONG-TERM PLANS LOOKING AT HOW DO WE GET MORE OF OUR 
          [01:10:03]
FOLKS ENROLLED IN CONSERVATION PROGRAMS, PARTICULARLY THE GENERAL-CLASS CUSTOMERS. BASED ON THE DATA YOU SENT TO ME, YOU DIDN'T HAVE IT BROKEN DOWN BY ACCOUNT TYPE BUT IS THERE ANY WAY WE CAN DO THAT DETAILED ANALYSIS ABOUT THE CONSERVATION PROGRAM? IS IT 70% RESIDENTIAL VERSUS GENERAL CLASS? AND ANY DIFFERENCES WITHIN THAT. 
          >> PUENTE: OUR CUSTOMER BASE IS OVERWHELMINGLY RESIDENTIAL. 
          IF THEY HAVE AN IDEA ON HOW TO SAVE WATER, WE WILL CUSTOMIZE A PROGRAM JUST FOR THAT BUSINESS -- AND THERE HAS TO BE A RETURN ON INVESTMENT FOR THEM BECAUSE THEY'RE GOING TO INVEST IN IT AND WE'RE GOING TO INVEST IN IT TOO. 
          IF WE CAN COME TO AN AGREEMENT ON A GOOD RATE OF RETURN, WE WILL CUSTOMIZE A PROGRAM FOR THEM. WE HAVE A HISTORY OF DOING THAT SO IT'S NOT NECESSARILY 
          A NEW PROGRAM. WE KNOW WHAT TO DO. >> GALVAN: IS THAT WAITING 
          FOR THE COMPANY OR BUSINESS TO COME TO YOU? >> PUENTE: NO, WE HAVE AN INDIVIDUAL THAT HE IS CHARGED WITH COMMUNICATING WITH BUSINESSES AND ENCOURAGING THEM TO COME TO US TO SEE ANY PROGRAMS WE MAY HAVE. 
          THESE AMI METERS ARE TREMENDOUS. THEY TELL US A WHOLE LOT OF INFORMATION. JUST BECAUSE YOU'RE A BIG WATER USER DOESN'T MEAN YOU'RE A WATER WASTER. LIKE H-E-B, ONE OF OUR BIGGEST USERS BUT THEY WORK 
          WITH US CLOSELY ON WATER CONSERVATION PROGRAMS. >> GALVAN: WE, THE CITY, AND BEYOND THAT AND LARGER USERS AS WELL, WHAT THAT PLAN IS, SIMILAR TO THE RENTAL PROGRAM WE WERE TALKING ABOUT. WHAT THAT LONG-RANGE PLAN IS. FOR A LOT OF RESIDENTS THE QUESTION COMES BACK TO I'M DOING EVERYTHING I CAN TO CONSERVE AS MUCH WATER AS POSSIBLE. 
          WE KNOW MOST RESIDENTIAL CUSTOMERS ARE USING THE MINIMUM. 
          AND THEY WONDER WHAT ABOUT THESE LARGER ENTITIES THAT WE'RE SEEING WATER SPILL 
          OUT. >> WE HAVE ACTIVE COMMUNICATIONS WITH YOUR PARKS DEPARTMENT, ACTIVE COMMUNICATIONS WITH YOUR FACILITY DEPARTMENT TO TRY TO MAKE SURE THAT THE CITY'S USAGE ALSO HAS A CONSERVATION BENT WITH IT. 
          >> GALVAN: ONE LAST QUESTION I HAD TOO WAS THE GENERAL-CLASS CUSTOMERS. 
          I WAS LOOKING AT THE SUMMARY PROVIDED. WOULD YOU SAY IT'S FAIR TO -- IS IT A CORRECT UNDERSTANDING THAT BASED ON THE METER SIZES OF SOME OF THE BUSINESSES THAT OUR SMALLER BUSINESSES, WHETHER THEY'RE LIKE THE TAQUERIAS OR A LAUNDROMATS -- THEY MAY BE DIFFERENT BECAUSE THEY'RE MORE INTENSIVE -- BUT ARE USING LESS WATER OR HAVE A DIFFERENT RATE THAN SOME OF THE LARGER GENERAL-CLASS 
          CUSTOMERS? >> PUENTE: YES. A LOT OF RATES ARE BASED ON THE METER SIZE AND SO IF YOU HAVE A HUGE FACILITY, YOU HAVE A VERY LARGE PIPE GOING IN, VERY LARGE METER. SO A LOT OF THESE SMALLER RESTAURANTS HAVE A SMALLER 
          METER AND THEREFORE THEY'RE NOT CHARGED AS MUCH. >> GALVAN: MAYBE I CAN REVIEW THE PRESENTATION IN A LITTLE MORE DETAIL. DO WE HAVE AN IDEA OF THE 
          [INDISCERNIBLE] >> PUENTE: IT IS A RATE INCREASE FOR ALL 
          GENERAL-CLASS CUSTOMERS. >> GALVAN: GOT IT. THOSE ARE ALL MY QUESTIONS FOR NOW. THANK YOU, ROBERT AND THANK YOU, TROY AS WELL. 
          THANK YOU, MAYOR. >> MAYOR JONES: THANK YOU. COUNCILMEMBER VIAGRAN. 
          >> VIAGRAN: THANK YOU, MAYOR. THANK YOU FOR THE PRESENTATION, TROY. THANK YOU, ROBERT AND ALL OF YOU FROM SAWS THAT ARE HERE TO REPRESENT, AND THE WORK OF THE BOARD. I REALLY APPRECIATE IT. 
          AS WE MOVE FORWARD IN THIS. AS YOU KNOW, WATER IS KEY TO THE GROWTH OF THE CITY OF SAN ANTONIO, NOT ONLY JUST BECAUSE IT'S NECESSARY BUT AS WE GROW ECONOMICALLY WE NEED TO HAVE A RELIABLE WATER SOURCE. AND ONE OF THE THINGS THAT WE'VE SEEN OR THAT I'VE HEARD IS THERE ARE SOME INDUSTRIES AND BUSINESSES COMING HERE IS BECAUSE OF OUR UTILITIES AND BECAUSE WE HAVE BEEN SO RESPONSIBLE WITH THEM. BUT AS SOME OF MY COUNCIL MEMBERS HAVE MENTIONED, WE DO KNOW WE HAVE AN AGING INFRASTRUCTURE IN PARTS OF THE CITY. 
          AND PART OF THAT IS BECAUSE WE HAD THE ORIGINAL CITY OF SAN ANTONIO AND WE KNEW WHAT WE HAD. AND THEN WE HAD A WHOLE BUNCH ANNEXED IN. 
          WE'RE STILL ANNEXING PORTIONS OF THE AREA INTO THE CITY OF SAN ANTONIO. 
          AND THERE SOMETIMES WE DON'T KNOW WHAT WE'VE GOT. SO AS WE MOVE FORWARD AND, YOU KNOW, I'LL ALWAYS BRING UP BEXAR MET BECAUSE A LOT OF MY CONSTITUENTS WERE CUSTOMERS OF BEXAR MET. WE STILL HAVE THAT ISSUE WHEN WE GO IN AND WE DO SOME PROJECTS THERE. AS THE CLIMATE CHANGE CONTINUES, AS WE GET 
          [01:15:05]
DROUGHTS, AS WE CONTINUE AND EDUCATE OURSELVES ON WHAT HAPPENS TO AGING PIPES FROM THE 1920S AND THE FOURTHS THE '40SAND '60S, WE NEED TO ADJUST ACCORDINGLY. 
          I UNDERSTAND WHERE THESE RECOMMENDATIONS COME IN. I WAS HERE YEARS AGO -- I DON'T KNOW HOW MANY YEARS AGO IT WAS WHEN ROBERT AND THE TEAM CAME AND TALKED ABOUT THE RATE ADJUSTMENT WE WOULD NEED TO DO FOR THE BIGGER BUSINESSES AND THE INDUSTRIES AS WE MOVE FORWARD. I UNDERSTOOD THAT THIS DAY WAS GOING TO COME AND WHAT IT WOULD LOOK LIKE. THE ONE THING THAT I'M PROUD OF AND WHY I CALL IT A RATE ADJUSTMENT -- AND PEOPLE CAN CALL IT A RATE INCREASE. 
          BUT A RATE ADJUSTMENT IS BECAUSE THE CUSTOMER HAS THE POWER TO KEEP THEIR BILL THE SAME, IF THEY CONSERVE. AND IF THEY TAKE A REALLY GOOD LOOK AT WHERE THEY'RE USING WATER AND HOW THEY'RE USING WATER. AND I APPRECIATE COUNCILMAN GALVAN'S QUESTIONS ABOUT CONSERVATION BECAUSE WHAT WE'VE LEARNED IS IF YOU DECIDE TO PUT A CERTAIN GRASS IN YOUR YARD AND THAT'S WHAT YOU WANT TO KEEP ALIVE, IT'S GOING TO COST YOU MORE MONEY. IF YOU XERISCAPE OR DO WHAT I DID AND LET YOUR GRASS JUST DIE AND LET NATURE TAKE OVER, IT IS GOING TO BE A LOT LESS EXPENSIVE. BUT YOU HAVE TO MAKE THESE HARD DECISIONS OF WHAT YOU'RE GOING TO PRIORITIZE AND WHAT YOUR BUDGET HAS. SO I THINK FOR ME I THINK THE OPPORTUNITY IS GOING TO BE TALKING TO MY CONSTITUENTS ABOUT THEIR BUDGET AND HOW MUCH THEIR WATER BILL COST RIGHT NOW. WHAT THEY CAN DO TO -- IF THEY DO EXACTLY WHAT THEY'RE DOING RIGHT NOW, HOW THAT'S GOING TO INCREASE. 
          IF THEY MAKE SOME CHANGES, HOW IT'S GOING TO STAY THE SAME. 
          AND IF THEY'RE A BIT OF A WATER WASTER, HOW THEY CAN LOWER THAT BILL. 
          SO THE ONE THING I WANTED TO DO IS I WANTED TO START WITH SLIDE 22. 
          TROY, THANK YOU FOR THE ADJUSTMENTS AND THE RECOMMENDATIONS YOU MADE. 
          I'M JUST GOING TO STATE RIGHT NOW I AM COMFORTABLE WITH THE MAX OF 7%. 
          AND 6.6 IN '28 AND '29. BUT I'M STATING TO YOU NOW HERE IN FRONT OF THIS GROUP IS I WOULD LIKE US TO STAY AT THE LOWER END AS POSSIBLE. 
          SO THE SOONER YOU CAN TELL US -- AND ROBERT AND THE TEAM AT SAWS CAN TELL US WE DON'T HAVE ENOUGH BUSINESSES COMING IN, WE'RE NOT GETTING ENOUGH CUSTOMERS, IT'S GOING TO LEAN TOWARDS THAT 7. PLEASE LET US KNOW SO WE AS A CITY CAN TRY TO MOVE TO INCREASE THAT CUSTOMER BASE, WHETHER IT'S WITH MORE BUSINESSES OR MORE RETAIL, MORE EVENTS AND DIFFERENT TYPES OF HOUSING. WE WANT TO SEE MORE PEOPLE COME IN AND BUILD AND BE RESPONSIBLE WATER USERS HERE. 
          BECAUSE WE DON'T WANT TO WASTE WATER EITHER. THEN I WANT TO MOVE ON, BECAUSE I HAVE SOME QUESTIONS REGARDING 21 ON THE UPLIFT PROGRAM . 
          FOR THE PLUMBERS TO PEOPLE AND PROJECT AGUA, AS SOON AS WE CAN, DO WE HAVE ANY DETAILS ON HOW THAT'S GOING TO CHANGE, IN TERMS OF -- BECAUSE WE'RE GOING TO ADD -- WE'RE MOVING FROM 125 TO 150 -- GAVINO, MAYBE YOU CAN ANSWER THIS. 
          I DO WANT PEOPLE WHO HAVE NOT INVESTED IN THEIR HOMES BUT POSSIBLY OWN THEIR HOMES, ARE WE GOING TO ASK THEM TO PUT SOME KIND OF SKIN IN THE GAME AS WE LOOK AT MAKING SURE THAT THEY TAKE CARE OF THEIR INFRASTRUCTURE IN AND AROUND 
          THEIR HOUSE THAT LEADS TO THE MAIN WATER LINES? >> PUENTE: WELL, IF THEY HAVE A PLUMBING PROBLEM AND IT'S LEAKY FAUCETS, WHATEVER THE SITUATION IS, AND THEY QUALIFY FOR THESE PROGRAMS, WE WILL SEND A PLUMBER THERE AT OUR COST TO REPAIR THAT ISSUE. IT SAVES THEM ON THEIR WATER BILL. 
          IT SAVES US, BECAUSE WE DON'T HAVE TO SUPPLY AS MUCH WATER. 
          >> VIAGRAN: I GUESS, GAVINO, AS WE MOVE FORWARD, WHAT I WOULD LIKE TO SEE IS IF WE CAN GET SOMETHING AS A REBATE, IF YOU ARE BEING PREVENTIVE AND YOU GO IN AND YOU USE SOMEONE FROM THE PLUMBERS TO PEOPLE LIST TO TAKE CARE OF IT, BECAUSE WE KNOW YOU HAVE A LEAK AND I KNOW SAWS IS GREAT ABOUT SENDING OUT THE ALERT THAT YOU HAVE A LEAK AT YOUR HOUSE. AND THEY DO THAT IN A TIMELY MANNER, THAT WE KIND OF LOOK AT EITHER REBATES -- I KNOW WE HELP THEM IF THEY HAD A 
          [01:20:06]
LEAK AND IT MOVED THERE. BUT ALSO LOOKING AT THAT PREVENTIVE PIECE AND THEY KNOW THE PIPES ARE GETTING OLD OR THEY KNOW IT'S DRAINING NOT AS WELL. 
          I'M THINKING SPECIFICALLY FOR THE AGING HOMES IN THE SOUTHERN SECTOR OF SAN ANTONIO. IF WE COULD WORK ON THAT, I WOULD APPRECIATE IT. 
          AND THEN LET'S MOVE ON TO SLIDE -- I WANT TO TALK ABOUT THE SLIDE 15 AND THE PERSONNEL AND THE POSITIONS. IS THIS -- ROBERT, ARE THESE FULL-TIME POSITIONS, PART-TIME POSITIONS? FULL-TIME POSITIONS? OKAY. 
          AND WE FEEL LIKE THIS IS ENOUGH TO MEET THE NEEDS OF THE WAY THE CITY IS GROWING? YOU KNOW, I'M ALWAYS GOING TO LOOK AT THE LABOR AND I DON'T WANT US TO BE GIVING -- LIKE, THEY HAVE TWO JOBS. LIKE, YES WE'RE HIRING THEM ON BUT BECAUSE WE ASK FOR 37 AND 48 VACANCIES, ARE THEY GOING TO BE DOING THE JOB THEY HAVE BEEN ASSIGNED TO OR ARE THEY GOING TO BE DOING TWICE THE WORK? 
          >> ELLIOTT: WHAT'S BEEN PROPOSED TODAY. FOR THE NEXT TWO YEARS AND THE LATTER TWO YEARS OF THE FOUR-YEAR RATE PLAN, IN THE EVENT THAT IT'S NOT, THEY DO HAVE THE ABILITY TO COME BACK TO US WITH JUSTIFICATION TO GO ABOVE AND BEYOND THAT MINIMUM RATE GUARANTEE. THEY HAVE THE FLEXIBILITY IN 
          THE EVENT THEY NEED MORE, TO DOMCOME BACK AND SUPPORT IT. >> VIAGRAN: I'M LEAVING THAT TO THE BOARD TO TALK ABOUT WAGES AND SALARIES BECAUSE THAT IS YOUR JOB. 
          I WANT TO MAKE SURE -- I LOVE THE IDEA OF HIRING PEOPLE AND KEEPING PEOPLE IN POSITIONS. AND NOT PUTTING HOLDS. BUT I WANT TO MAKE SURE THAT THEY ARE GETTING PAID FOR THE WORK THEY ARE DOING AN CONTINUE TO ADVOCATE THAT WE EVER -- THEY'RE NOT OVERBURDENED AND WE'RE SEEING HIGH TURNOVER IN SAWS. BECAUSE THEY FEEL LIKE THEY'RE DOING TWO PEOPLES' JOBS. THAT'S THE ONE QUESTION I HAD FROM THERE. 
          YOU KNOW, I THINK DISTRICT 3 IS ON THAT LIST. THANK YOU, MAYOR FOR PROVIDING IT. I KNEW WE WOULD BE ON THAT LIST. 
          I JUST WANT TO MAKE SURE THAT WE KIND OF MOVE FORWARD AND SET OUR EXPECTATIONS FOR THE RESIDENTS AS THEY MOVE FORWARD. AGAIN, I'LL BE WORKING TO MAKE SURE THEY LOOK AT THEIR BUDGET AND SEE WHAT THEIR WATER COSTS ARE. 
          BUT UTILITY COSTS ARE ESSENTIAL TO LIVE AND THEY'RE ESSENTIAL FOR THE CITY TO CONTINUE TO GROW IF WE WANT TO BRING BUSINESSES. THANK YOU FOR THE PRESENTATION AND I LOOK FORWARD TO MOVING THIS FORWARD. 
          THANK YOU. >> MAYOR JONES: THANK YOU. COUNCILMEMBER KAUR. 
          >> KAUR: THANK YOU, MAYOR. SO THERE'S THREE THINGS THAT I WANT TO FOCUS ON FOR MY COMMENTS TODAY. THE FIRST IS THE UPLIFT PROGRAM. 
          THANK YOU, ROBERT AND GAVINO FOR SENDING OVER THAT DATA FOR DISTRICT 1 UPLIFT. 
          THERE ARE 1770 FAMILIES ON UPLIFT IN DISTRICT 1. NOW, WITH THE CHANGE, THERE'S GOING TO BE OVER 10,000 FAMILIES THAT ARE ELIGIBLE. 
          CAN SOMEONE SHARE WHAT THE PLAN IS TO GET THOSE FOLKS ON UPLIFT? AND WHAT IS PUT IN THE BUDGET FOR FINANCES ON THE MAX AMOUNT OF FAMILIES THAT CAN BE ADDED TO THAT? BECAUSE I WAS TOLD THERE IS NO UPPER BOUNDARY OF HOW 
          MANY FAMILIES THAT CAN BE ADDED. >> PUENTE: UNFORTUNATELY, THAT IS TRUE. I SAY UNFORTUNATELY BECAUSE THAT MEANS THAT WE HAVE A CITY WITH A LOT OF PEOPLE IN NEED. YES, WE CAN HELP THEM. 
          THE WAY WE HAVE SET UP THAT SEPARATE RATE, IT'S SEPARATE FROM THE RATES THAT WE CHARGE EVERYBODY ELSE, IS THAT UPLIFT PROGRAM CAN GROW WITHOUT HAVING TO GO BACK TO COUNCIL FOR MORE MONEY OR ANYTHING LIKE THAT. IT WILL ALWAYS BE WITHIN OUR BUDGETED AMOUNT HOW WE DO BUSINESS. THAT CAN GROW. 
          SO IF THIS -- GOING FROM 125 TO 150% OF POVERTY WILL ALLOW US TO ALMOST DOUBLE 
          OVERALL CITY-WIDE THE AMOUNT OF FAMILIES WE CAN HELP. >> KAUR: SO YOU'RE ESTIMATING ONLY DOUBLE? BECAUSE THERE'S GOT TO BE A LIMIT. 
          YOU HAVE TO HAVE A CERTAIN AMOUNT BUDGETED, RIGHT? >> PUENTE: THE LIMIT -- GO 
          AHEAD. >> THERE IS NO LIMIT TO THE NUMBER OF PARTICIPANTS WE CAN HAVE. AND SO I THINK THAT WAS ONE OF THE QUESTIONS. 
          I KNOW OTHER AREAS HAVE A MAX OF HOW MANY PARTICIPANTS YOU CAN HAVE. 
          SO FOR UPLIFT, IF WE FIND AN ADDITIONAL 40,000 FAMILIES, 40,000 FAMILIES WILL GO ON 
          TO THE PROGRAM. >> KAUR: WHERE IS THE MONEY FOR THAT? 
          >> THAT'S PART OF OUR BUDGET. THAT'S PART OF WHAT THE NON-UPLIFT CUSTOMERS PAY. ON THE BILL THROUGH OUR RATE ADVISORY COMMITTEE, ABOUT FOUR YEARS AGO, THEY WANTED MORE TRANSPARENCY ON BEHALF OF SAWS. 
          SO IF YOU'LL NOTICE ON YOUR BILL, IT HAS UPLIFT FEE. I BELIEVE IT'S 32 CENTS FOR 
          [01:25:06]
EVERY THOUSAND GALLONS OF WATER THAT'S USED GOES TOWARDS UPLIFT. 
          >> KAUR: DOES THAT INCREASE THE MORE PEOPLE THAT GET ON UPLIFT? 
          >> THAT WOULD BE A FINANCE QUESTION. >> IT ACTS AS A PASS THROUGH. THESE LAST FOUR YEARS, SINCE WE HAVE IMPLEMENTED THIS PASS THROUGH OF UPLIFT ASSISTANCE PROGRAM, WE ACTUALLY SAW A SLIGHT DECREASE. EVERY YEAR THERE'S A DIFFERENCE WHEN PEOPLE HAVE TO RECERTIFY. WE HAVE ACTUALLY BEEN ABLE TO DECREASE THAT UPLIFT ASSISTANCE FEE FOR WATER AND SEWER OVER THE LAST FOUR YEARS. 
          WE ARE ANTICIPATING A 3% INCREASE. AGAIN, WE'RE NOT SURE WHAT TO ASSUME IN 2027. WE'RE ASSUMING A 3% INCREASE. 
          HOWEVER, WE TRUE UP THAT AMOUNT EVERY YEAR. AND WE RECALCULATE THAT FEE AT THE END OF EVERY YEAR FOR THE NEXT YEAR. WE WILL DO THAT, JUST LIKE WE DO OUR EAA FEE AND TCEQ FEE. IT'S A PASS-THROUGH FEE. 
          >> KAUR: SO IF YOU HAVE 10% INCREASE, THAT WILL BE PASSED THROUGH TO EVERYONE 
          ELSE? >> YES. IT'S ROUGHLY 15 CENTS -- I THINK IT'S 12 CENTS FOR WATER AND 14 CENTS FOR SEWER ON AN AVERAGE BILL. 
          THAT INCLUDES THE 6,275 GALLONS, SO IT'S EVEN LOWER. 
          >> KAUR: THIS IS PROBABLY NOT A YOU QUESTION. WHAT'S THE PLAN TO INCREASE 
          THE FOLKS THAT ARE ACCEPTING OR GETTING ON THE PLAN? >> WE'RE GOING TO CONTINUE TO ATTEND THE VARIOUS EVENTS. WE ATTENDED NEARLY 600 EVENTS LAST YEAR. EACH COUNCILPERSON JUST ABOUT HAS LET US INTO THEIR OFFICE ONCE A WEEK SO WE CAN HELP ADDITIONAL CUSTOMERS. WE HAVE USED YOUR NEWSLETTERS ON DIFFERENT EVENTS THAT WE'RE GOING OUT TO. 
          WE HAVE BEEN KNOCKING ON DOORS IN AREAS THAT WE EXPECT TO BE BIG PARTICIPANTS. WE HOLD BLOCK WALKS WHERE MR. PUENTE AND DIFFERENT COUNCIL MEMBERS TO JOIN US TO GET RESIDENTS AND WE SIGN THEM UP. 
          DIRECT MAIL HAS BEEN VERY, VERY SUCCESSFUL. WHAT WE TRY TO DO WITHIN OUR OWN ORGANIZATION IS USING DATA CONSENSUS TRACT DATA. IDENTIFY THE AREAS THAT WOULD MOST QUALIFY AND FOCUS ON THOSE AREAS. WE'RE GOING TO CONTINUE TO KNOCK ON THE DOORS OF THE FOLKS WE FEEL SHOULD BE PART OF THIS PROGRAM. 
          >> KAUR: I WOULD LIKE TO SEE THAT 20% NUMBER INCREASE. 
          I WOULD LIKE TO SEE THE HISTORY OF HOW MUCH IT'S INCREASED OVER THE LAST COUPLE OF YEARS. HAVE WE BEEN ABLE TO GET MORE CUSTOMERS ON UPLIFT AND AT WHAT RATE? AND I WOULD LIKE TO SEE A TARGET SET FOR WHAT YOU GUYS CAN ACCOMPLISH AND HOW MANY MORE MEMBERS CAN BE ON UPLIFT IN THE NEXT FOUR YEARS IN TANDEM TO THIS RATE INCREASE. SO IF THAT'S 20% RIGHT NOW, IT WILL BE 30% NEXT YEAR, OR WHATEVER THAT YOU GUYS THINK IS ACTUAL AND FEASIBLE. 
          IF YOU WANT A DIFFERENT RESULT, YOU HAVE TO DO SOMETHING DIFFERENT. 
          >> PART OF WHAT WE'VE SEEN HERE RECENTLY -- YOU'LL SEE THROUGH THE NUMBERS WE PROVIDE YOU -- HAS BEEN A SMALL DECLINE ONLY BECAUSE WE HAVE GONE AWAY FROM JUST HAVING PEOPLE SIGN UP FOR THE PROGRAM. WE'RE ASKING FOR SOME VERIFICATION NOW AND SO RIGHT NOW FOR THE PAST THREE TO FOUR YEARS WE WENT THROUGH A RECERTIFICATION PROCESS. NOW WE'RE WORKING WITH THE CURRENT MEMBERS THAT ARE ON AND WE'RE HAVING THEM COME IN AND BRING IN SOME DOCUMENTATION THAT SHOWS THEY'RE ON THE PROGRAM. SOME FOLKS HAVE DECIDED NOT TO RESPOND WHILE OTHERS ARE COMING OUT IN DROVES AS WELL. 
          SO THERE'S GOING TO BE SOME UPS AND DOWNS WHILE WE GO THROUGH THIS PROCESS BUT WE'RE GOING TO TRY TO FIND EVERYBODY THAT WE CAN THAT SHOULD BE ON THE PROGRAM. 
          >> KAUR: BROUGHT UP THE NOTION OF CONSTRUCTION AND NO ONE KNOWS SAWS' CHALLENGES WITH CONSTRUCTION BETTER. AND WE SAW THAT ON SEVERAL PROJECTS. 
          JUST THIS WEEK I REALIZED THAT OUR HILDEBRAND PROJECT IS NOW ALSO GOING TO BE ABOUT A YEAR DELAYED BECAUSE THE QUALIFICATIONS DID NOT COME BACK TO MEET WHAT YOU ALL WERE REQUESTING. I'M CURIOUS. IF YOU ARE SAYING WE'RE GOING TO BE ABLE TO DO CAPITAL PROJECTS ON TIME AND ON BUDGET, WHAT ARE YOU GOING TO DO DIFFERENTLY TO MAKE SURE THAT THAT IS THE CASE? 
          >> PUENTE: IN THIS SITUATION, I BELIEVE WE DID THE RIGHT THING. 
          THE BIDS THAT CAME IN DID NOT MEET OUR STANDARDS FOR WHAT WE WOULD WANT IN THAT CORRIDOR, THAT BUSY KIND OF STREET. AS YOU KNOW THAT PART OF HILDEBRAND HAS NO SIDEWALKS. VERY LITTLE RIGHT-OF-WAY AND A LOT OF TRAFFIC GOING THROUGH THERE. WE DIDN'T FEEL CONFIDENT IN THE BIDS WE RECEIVED. 
          THE CHANGE THAT WE'RE MAKING IS WE'RE GOING TO CHOOSE THE CONTRACTOR BASED ON A BEST VALUE. IN OTHER WORDS, WE'RE GOING TO NOT BASE IT ON A LOW BID ON THE CHEAPEST THAT THEY CAN DO IT. IT'S THE BEST THEY CAN DO IT. GET IN THERE, GET OUT. TALK TO THE NEIGHBORS. 
          DO A GOOD JOB AND GET THE STREET TRAFFIC FLOWING AGAIN. 
          [01:30:01]
SO IT WILL GET DONE. QUICKLY. I PROMISE YOU. 
          >> KAUR: I WOULD LIKE TO SEE THE DIFFERENCE IN QUALIFICATIONS AND WHAT'S COMING BACK SO WE CAN GET AN ACTUAL TIMELINE FOR CONSTRUCTION. 
          >> PUENTE: WE'LL PROVIDE THAT TO YOU. >> KAUR: AND THEN THE LAST THING IS ON THE IMPACT WATER FEES. THANK YOU FOR SHARING THE DATA WITH ME. WHEN I DID THE MATH, THE DIFFERENCE IN COST IS ACTUALLY HIGHER FOR THE MULTIFAMILY WITH 20 UNITS VERSUS 75 UNITS. 
          AS WE TALK ABOUT MISSING MIDDLE HOUSING, I WOULD LIKE FOR US TO THINK ABOUT HOW WE DO SAWS IMPACT FEES A LITTLE DIFFERENTLY FOR OUR SMALLER PROJECTS THAT CAN'T BEAR 
          MORE OF THE COST. >> PUENTE: YES. THAT CYCLE IS COMING UP. 
          WE DO THAT EVERY FIVE YEARS. THAT INITIAL CYCLE IS COMING UP NEXT YEAR WHERE WE CAN START WORKING ON THOSE KINDS OF ISSUES. I DO WANT TO REMIND COUNCIL THAT EACH ONE OF YOU HAS AN APPOINTEE OR CAN HAVE AN APPOINTEE TO THAT COMMITTEE. 
          IT'S ACTUALLY A CITY COMMITTEE THAT WE STAFF. SO YOU WILL HAVE DIRECT 
          REPRESENTATION ON THERE. >> MAYOR JONES: THANK YOU. WE'RE GOING TO TAKE 
          >> MAYOR JONES: OKAY. WOULD ANYONE ELSE LIKE TO SPEAK ON THE FIRST ROUND? OKAY. WE HAVE ONE OF OUR COLLEAGUES ON THE SECOND 
          ROUND. COUNCILMAN GALVAN. >> GALVAN: THANK YOU, MAYOR. A COUPLE LAST QUICK QUESTIONS. 
          A LITTLE BIT MORE ON THE UPLIFT PROGRAM. I THINK WE TALKED ABOUT IT, ABOUT THE PROACTIVE OUTREACH WE'RE DOING WITH FOLKS. I THINK COUNCILMEMBER KAUR MENTIONED ABOUT HOW DO WE GET TO THIS NEXT STEP. CONSERVATION EFFORTS AND THINGS OF THAT NATURE, HOW CAN WE REACH FOLKS OUTSIDE OF THAT LIMIT? I HEAR THAT IN DISTRICT 6, A LOT OF FOLKS JUST OUTSIDE THAT EDGE OF SOME KIND OF ASSISTANCE PROGRAM OF SOME KIND. TRYING TO FIGURE OUT A WAY, DO WE DO TARGETED OUTREACH OF FOLKS OUTSIDE THE LIMIT OF THE FEDERAL POVERTY WHO 
          DON'T QUALIFY FOR UPLIFT? >> PUENTE: PART OF IT IS YOUR HISTORICAL KNOWLEDGE OF SAN ANTONIO AND YOUR NEIGHBORHOODS . WE KNOW WHERE CERTAIN PEOPLE LIVE. AND A MORE SOPHISTICATED WAY OF LOOKING AT CENSUS DATA. 
          THAT TAKES MORE TIME AND ENERGY BUT WE DO BOTH. >> GALVAN: DOES ANYBODY DO IT ON SAWS' BACK END? I THINK YOU HAVE TO TAKE 
          >> YES, VERIFICATION OF INCOME. ESPECIALLY TO GO FROM 125 TO 
          150. >> GALVAN: I KNOW LAST TIME I TALKED ABOUT AUTOMATIC ENROLLMENT IN THE UPLIFT PROGRAM. THAT'S A LONGER PROCESS TO GET THERE BUT WOULD BE INTERESTED IN SEEING ARE THERE WAYS THAT YOU ALL CAN GET THAT INFORMATION? THAT WAY THERE CAN BE THAT PROACTIVE OUTREACH. 
          IT'S A BIT OF A CAT AND MOUSE WHEN WE'RE TRYING TO GET FOLKS OUTSIDE THE INCOME RANGE AND KNOW THESE PROGRAMS EXIST AND WHAT THESE PROGRAMS CAN FULLY IMPACT THEM WITH IN TERMS OF REDUCING THEIR COST IN SOME WAY. 
          >> PUENTE: YES. WE USE MULTIPLE IDEAS AND WAYS TO GET MORE FAMILIES INVOLVED IN THIS PROGRAM. AND SOME OF THEM ARE VERY SOPHISTICATED WAYS THAT WE LOOK AT AND LEADING INDUSTRY METHODS TO TRY TO INCREASE YOUR POOL OF APPLICANTS. 
          BUT ULTIMATELY, I THINK IT IS A COMMITMENT BY OUR TEAM, LED BY GAVINO, THAT HE KNOWS THIS IS VERY IMPORTANT TO SAWS. IT'S VERY IMPORTANT TO COUNCIL. AS COUNCILWOMAN SAID IN DISTRICT 1, SHE WANTS THE NUMBERS TO GO UP. WE ALL WANT THE NUMBERS TO GO UP. 
          WE KNOW WHAT THE GOAL IS. WE KNOW WHAT THE STANDARD IS, WHAT Y'ALL WANT US TO DO. AND THAT'S A BIG DRIVER TO MAKE SURE WE FIND THESE 
          FAMILIES. >> GALVAN: I WOULD BE INTERESTED IN SEEING TOO THE LONG-TERM VIEW IN PARTNERSHIP WITH US, HOW CAN WE SET THOSE MEETINGS UP OR 
          WHATEVER NEEDS TO TAKE PLACE. >> PUENTE: YES. 
          BECAUSE WE ATTEND A LOT OF YOUR BACK TO SCHOOL FAIRS, ALL KINDS OF COMMUNITY MEETINGS THAT YOU HAVE, TOWN HALLS. WE SET UP A TABLE THERE WITH OUR COMPUTERS THAT WE CAN SIGN PEOPLE UP THERE. WE UTILIZE YOUR NEWSLETTERS, WHEN YOU ALLOW US TO, TO DO SOME OUTREACH. SO THOSE TRADITIONAL WAYS WE USE. UNTRADITIONAL WAYS, I MYSELF HAVE GONE BLOCK WALKING WITH COUNCIL MEMBERS, WITH STAFF WITH THEIR COMPUTERS. THEY CAN SIGN PEOPLE UP 
          RIGHT THEN AND THERE. >> GALVAN: I THINK IT'S JUST CONTINUING TO WORK THROUGH THAT TO -- YEAH, REACH THOSE FOLKS WHO ARE MORE DIFFICULT TO REACH. 
          ONE OF THE THINGS I WAS GOING TO ASK WAS I THINK ON THE CONSTRUCTION CONVERSATION TOO -- WE SEE ALL DIFFERENT KINDS OF FORMS AND FONTS. 
          I DON'T KNOW WHAT'S THE BEST WAY TO KIND OF LAY THIS OUT BUT I'M INTERESTED IN SEEING WHAT THE KIND OF NEXT TEN YEARS, NEXT FIVE-YEAR PLAN. I KNOW WE DID SOME WORK ALREADY WITH YOUR ORGANIZATION ALONG WITH THE CITY OF SAN ANTONIO AND OUR 
          [01:35:04]
BOND PROJECTS, BUT LOOK AT HOW WE CAN BETTER ALIGN WITH CPS. 
          THOSE ARE ONGOING CONVERSATIONS BUT INTERESTED IN SEEING HOW WE CAN CONTINUE TO BUILD UPON THAT WORK THAT WE HAVE DONE. I'M LOOKING AT THE PIPES YOU'RE MENTIONING IN DISTRICT 6, IT'S A FEW. WONDERING HOW MANY OF THOSE HAD RECENT I&P STREET AND WALK IMPROVEMENTS. THE RESIDENTS DON'T DISTINGUISH THE THREE ENTITIES FROM EACH OTHER. SAYING YOU'RE TAKING UP THE STREET AGAIN. TRYING TO FIGURE OUT HOW DO WE GET TO THAT FULL ALIGNMENT THERE SO WE DO ONE PROJECT AT A TIME. HOPEFULLY WITHIN A CERTAIN 
          TIME-FRAME. >> PUENTE: YOU GET THERE BY CONTINUOUSLY DOING THE RIGHT THING AND BY DOING SOMETHING ON TOP OF THAT. ON TOP OF THAT, WHAT I'M TALKING ABOUT IS OUR CHIEF OPERATING OFFICER, ANDREA BEAMER, SHE HAS A REGULAR MEETING WITH MIKE SHANNON AND ART AS TO WHAT THE PROJECTS ARE, WHAT ISSUES ARE OUT THERE BETWEEN OUR TWO DEPARTMENTS. SAME THING WITH CPS. 
          WE MEET WITH THEM REGULARLY. WE HAVE NOW A MEMO OF UNDERSTANDING WITH THE CITY AS TO WHAT OUR DUTIES ARE, WHAT THE CITY'S DUTIES ARE. SOMETHING AS SIMPLE AS BOTH OF US HAVING A CONTRACTUAL RELATIONSHIP WITH THE CONTRACTOR WHERE WE BOTH CAN PUT PRESSURE ON THE CONTRACTOR AND WORK WITH EACH OTHER TO MAKE SURE THAT THE PROJECT MOVES FORWARD. I DO WANT TO SAY THAT IT'S VERY RARE THAT THESE PROJECTS COME TO YOUR ATTENTION BECAUSE THEY USUALLY GET RESOLVED BY OUR RESPECTIVE STAFFS. SO YOU SEE AND HEAR THOSE PROBLEMS BUT WE DO NEED TO 
          ADDRESS THEM. >> GALVAN: I APPRECIATE THAT. 
          THANK YOU. THANK YOU, MAYOR. >> MAYOR JONES: ANY OTHER COMMENTS FROM MY COLLEAGUES? OKAY. THE COUNCILWOMAN FROM DISTRICT 7 MENTIONED A CHART AND A MAP. I WANT TO MAKE SURE, FOR THE PUBLIC'S BENEFIT, THAT THEY ARE AWARE OF WHAT WE'RE DISCUSSING. 
          THIS IS A MAP THAT WAS PROVIDED BY SAWS THAT SHOWS THE DENSITY OF WORK ORDERS BETWEEN THE YEARS 2020 AND 2025. A TOTAL OF 14,591 WORK PROJECTS WERE COMPLETED THROUGHOUT THE CITY. YOU CAN SEE AGAIN THE PURPLE AREAS ARE WHERE THEY'RE MOST DENSE. AS THE CEO, ROBERT PUENTE MENTIONED, THE PIPES AND THE LEAKS DON'T FOLLOW EXACTLY ALONG DISTRICT LINES, WHICH IS WHY YOU CAN SEE SOME CONCENTRATION THERE BETWEEN 5 AND 7. 
          SO THIS THOUGH IS REFLECTIVE OF THE WORK THAT HAS BEEN DONE BETWEEN THE YEARS 2020 TO 2025. WHAT'S A LITTLE BIT HARDER TO SEE IS THE LEGEND UNDERNEATH. BUT ACTUALLY THE PROJECTS THAT ARE EITHER GOING TO BE IN DESIGN OR CONSTRUCTION BEGINNING WITH '26 MOVING OUT TO '29. 
          THOSE ARE ALL CONCENTRATED IN THE EXACT SAME AREAS. IF YOU LOOK -- WE'LL TAKE DISTRICT 7. MANY OF THOSE PROJECTS ARE IN THAT CREEK BED BETWEEN WOODLAWN AND ELMENDORF LAKE. YOU CAN SEE THE OTHER CHART TALKS ABOUT THE WATER MAIN REPAIRS THAT NEED TO BE DONE. 70% OF THOSE ARE JUST IN FIVE DISTRICTS. THE DISTRICT RECEIVING THE MOST OF THAT WORK WOULD BE DISTRICT 1. 15.8 MILES FOR A TOTAL OF $60 MILLION. 
          THE SECOND DISTRICT WOULD BE DISTRICT 10. YOU CAN SEE THE CONCENTRATION, NOT ONLY OF THE WORK NEEDED OVER THE LAST FIVE YEARS, BUT OF COURSE THE WORK THAT REMAINS. THAT IS THE SECOND HIGHEST IN TERMS OF OVERALL INVESTMENT IN DISTRICT 10. THAT'S 9 MILES AND $33 MILLION WORTH OF WORK THAT NEEDS TO BE COMPLETED. NOT ONLY IS IT HELPFUL TO UNDERSTAND THE WORK THAT HAS BEEN DONE BUT AS MR. PUENTE MENTIONED, THE WORK THAT HAS BEEN DONE AND THE NEED TO BUILD ON THAT, WHICH THIS CAPITAL INVESTMENT PLAN DOES. THANK YOU FOR HIGHLIGHTING THAT. 
          THANK YOU TO THE SAWS TEAM. THE SAWS BOARD MEMBERS THAT TOOK THE TIME TO BE HERE. 
          AND OF COURSE OUR CITY STAFF THAT HAVE COMBED THROUGH THESE PROJECTS, THESE NUMBERS, AND THE RISKS ASSOCIATED WITH NOT DOING THESE PROJECTS. 
          THERE ARE THINGS OUT OF OUR CONTROL THAT ARE DRIVING UP COSTS IN OUR COMMUNITY. 
          A WAR IN THE MIDDLE EAST. SUPPLY SHORTAGES. SHORT-SIGHTED IMMIGRATION POLICIES DRIVING UP LABOR COSTS. I THINK WE ALL UNDERSTAND THAT BUT THAT DOESN'T MAKE THE NEED FOR THESE WATER PROJECTS ANY LESS IMPORTANT OR ANY LESS URGENT TO ADDRESS. IT DOESN'T CHANGE THE FACT THAT WE HAVE 100-YEAR-OLD PIPES IN OUR COMMUNITY. IT DOESN'T CHANGE THE FACT THAT CLIMATE CHANGE AND PROLONGED DROUGHTS HAVE IMPACTED THE LIFE CYCLE OF OUR INFRASTRUCTURE. AND IT DOESN'T CHANGE THAT WE HAVE A WASTEWATER TREATMENT FACILITY PLANT THAT WAS BUILT IN 1965 AND IS IN DESPERATE NEED OF UPGRADES. THIS IS A BUDGET, A RATE REQUEST INCREASE THAT ADDRESSES RISK IN MY WAYS IS CHEAPER THAN CONTINUING TO MAINTAIN COSTLY 
          [01:40:02]
INFRASTRUCTURE. IT IS, IN FACT, SOMETIMES JUST CHEAPER TO GET THE 2026 REALLY WANT TO FOOT STOMP THIS. THIS HELPS US AVOID COSTLY FINES. WE DON'T WANT TO BE IN A PREDICAMENT WHERE NOT ONLY IS THE INFRASTRUCTURE NOT PERFORMING WHAT IT NEEDS TO DO, IT IS NOW A PUBLIC HEALTH RISK. IT IS NOW A PUBLIC SAFETY RISK. 
          BUT OUR FEDERAL OVERSEERS OR STATE OVERSEERS HAVE NOW APPLIED VERY COSTLY FINES. 
          SOME TO THE TUNE OF $100,000 A DAY. SO WE DON'T NEED TO BE IN THAT TYPE OF SITUATION WHEN SOMETHING INEVITABLY FAILS TO MEET CODE DUE TO LACK OF INVESTMENT IN MAINTENANCE. I ALSO APPRECIATE THE SAWS TEAMS WILLINGNESS TO ATTEND TOWN HALLS AND ANSWER QUESTIONS. MR. PUENTE HAS BEEN TO SEVERAL OF MINE. AND ANSWER QUESTIONS ON EVERYTHING FROM LEAKS TO, YES, HIS PAY BONUS. TO CONSERVATION. THE PUBLIC'S QUESTIONS ARE FAIR AND THEY HAVE EVERY RIGHT TO ASK. WE OWE IT TO THEM TO EXPLAIN WHAT WE ARE AND ARE NOT DOING TO ENSURE THEY HAVE SAFE DRINKING WATER AND THAT THEIR TOILET CAN FLUSH. BASIC THINGS. WE DON'T HAVE THE LUXURY OF HYPOTHESIZING ON THIS. WE NEED TO ACT AS ONE SAN ANTONIO. 
          AS MANY OF YOU DESCRIBED DURING THE BUDGET GOAL-SETTING SESSION. 
          IT'S A WATER SYSTEM FOR A REASON AND WHEN SOMETHING BREAKS, ONLY BECAUSE WE FAILED TO MEET THE NEED, THEN WE WILL ALL FEEL IT AND WE WILL ALL ANSWER FOR IT. 
          WE SHOULD NOT TAKE FOR GRANTED OUR BOND RATING AND THE MESSAGE WE WOULD SEND TO THE RATING AGENCIES IF WE IGNORED THE ADVICE AND RECOMMENDATIONS OF OUR MUNICIPALLY-OWNED WATER UTILITY AND THE CITY'S PUBLIC UTILITY STAFF. 
          BOTH OF WHICH HAVE VALIDATED THE NEED, COST, AND SCHEDULE OF THESE NECESSARY WATER INFRASTRUCTURE PROJECTS. LOOKING JUST DOWN THE STREET, CORPUS CHRISTI REMINDS US WHERE YOUR INACTION COULD LEAD. QUOTE, GIVEN THE SYSTEM'S HEIGHTENED RISK PROFILE, INCLUDING CONCERNS RELATED TO MANAGEMENT AND GOVERNANCE, ANTICIPATED PERFORMANCE IS MORE CONSISTENT WITH AN A MINUS RATING LEVEL, FITCH RATINGS SAID. THIS WAS ON MONDAY, JUNE 1ST, WHEN FITCH RATINGS DOWNGRADED CORPUS CHRISTI'S CREDIT OUTLOOK. 
          WE CAN AND MUST AVOID SOMETHING SIMILAR HAPPENING HERE IN SAN ANTONIO. 
          WE NEED TO PASS THIS RATE INCREASE AND I HOPE MY COLLEAGUES WILL JOIN ME IN ENSURING THE CITY OF SAN ANTONIO HAS THE WATER SHE NEEDS. 
          ON THE FIRST ROUND. OKAY. COUNCILWOMAN CASTILLO. 
          COMMENTS. >> CASTILLO: THANK YOU. THANK YOU, TROY FOR THE PRESENTATION. OF COURSE, TO THE SAWS TEAM FOR Y'ALL'S WORK ON THIS PROPOSED RATE ADJUSTMENT. AS MR. PUENTE MENTIONED DURING THE FIRST PRESENTATION, THE COSTS ASSOCIATED WITH ESSENTIALLY PATCHWORK AND MAINTENANCE CAN SOMETIMES EXCEED THE COST OF FULL RECONSTRUCTION OF A POTENTIAL PROJECT. 
          AND I THINK IT'S IMPORTANT TO HIGHLIGHT THAT WHILE WE TALK ABOUT AND HAVE THIS CONVERSATION, YOU KNOW, WHEN WE TALK ABOUT NICE TO HAVES LIKE BASEBALL, BASKETBALL, AND THE FINANCIAL ARGUMENT IS EVERYONE HAS A NEWER ARENA. 
          WHEN WE'RE TALKING ABOUT OLD AND AGING INFRASTRUCTURE TO IMPROVE WATER QUALITY AND ACCESS, YOU KNOW, WE ASK FOR AUDITS. WE ASK FOR SO MUCH MORE THAN WE DO WHEN WE'RE TALKING ABOUT THE NICE TO HAVES. IN FACT, WE SAY HERE'S THE CREDIT CARD. HERE'S THE PUBLIC FUNDING. NO QUESTIONS ASKED. 
          I WANTED TO HIGHLIGHT THAT WE KNOW WHETHER IT'S HOUSING. 
          WE KNOW THIS WITH OUR BRIEFINGS WITH THE PUBLIC WORKS TEAM THAT IF WE FAIL TO INVEST IN INFRASTRUCTURE IT IS GOING TO COST THE PUBLIC MORE IN THE LONG RUN. 
          STUDIES SHOW REACTIVE FIXES CAN COST MORE THAN THE PROACTIVE INVESTMENT. 
          BROKEN WATER LINES CAN LOWER PRESSURE AND ALLOW OUTSIDE CONTAMINANTS TO ENTER THE SYSTEM. PUTTING WATER QUALITY AT RISK. 
          AND WITHOUT PROPER INVESTMENT, THERE IS A HIGHER RISK OF ENVIRONMENTAL AND PERMANENT VIOLATIONS THAT CAN HARM WATER QUALITY AND PUBLIC HEALTH. 
          POTENTIALLY IMPACTING THE ENTIRE RIVER SYSTEM DUE TO POLLUTANTS LIKE BACTERIA AND EXCESS NUTRIENTS BUILDING UP. I'M REMINDED OF HOW IMPORTANT WATER AND PUBLIC HEALTH WAS WHEN WE WERE HAVING THE CONVERSATION. 
          I HOPE THIS COUNCIL WILL CONTINUE TO HOLD THIS IN HIGH PRIORITY. 
          EVERY DOLLAR INVESTED PREVENTS COSTLY FAILURES LATER. 
          EVERY $1 MILLION INVESTED IN WATER INFRASTRUCTURE, GENERATES $2.5 MILLION IN ECONOMIC OUTPUT, $1.4 MILLION IN GDP AND SO MUCH MORE. 
          [01:45:01]
AND I THINK FOR THE SAKE OF THE CONVERSATION AND SINCE WE'RE IN THE PLAYOFF SEASONS, IF YOU GOOGLE WEMBY AND WATER, WATER IS REALLY IMPORTANT TO WEMBY IN THAT HE ASKS QUESTIONS IN TERMS OF WATER FILTRATION SYSTEMS. IN HONOR OF THE LAW OFFICE AND WEMBY, WE SHOULD BE PRIORITIZING OUR WATER QUALITY AND IT'S IMPORTANT QUESTIONS THAT OUR MVP IS ASKING AS WELL . AGAIN, WE KNOW THAT WE'RE HERE HAVING THIS CONVERSATION BECAUSE FEDERAL INVESTMENTS WERE ONCE THE BACKBONE OF WATER INFRASTRUCTURE BUT THAT FUNDING HAS DECLINED. 
          FROM COVERING MORE THAN HALF OF THE COST IN THE 1970S TO ABOUT 7% TODAY. 
          LIKE MOST OF US DURING COVID AND SINCE THEN, SAWS HAS BEEN -- HAS SEEN PRICE INCREASES DUE TO SUPPLY CHAIN INTERRUPTIONS, INFLATION, LABOR COSTS. 
          SAWS ALSO DEALT WITH WINTER STORM URI. MANDATES MADE BY THE EPA, MODERNIZATION, AND THE WORST DRAUGHT SINCE THE 1950S. AND A $2.6 BILLION BILL TO COMPLY WITH THE CONSENT DECREE. ALL OF THESE CONDITIONS HAVE SIGNIFICANTLY INCREASED THE COST FOR SAWS, YET SAWS WAS STILL ABLE TO KEEP THE SHIP AFLOAT AND LOWERED RATES BY 12% IN 2022. I THINK IT'S UNREALISTIC FOR US TO EXPECT SAWS TO DO MORE WITH LESS. AGAIN, AS I'VE MENTIONED, I'M EXTREMELY GRATEFUL FOR THE SAWS TEAM, PARTICULARLY TERESA, WHO IS IN DISTRICT 5, CONNECTING OUR RESIDENTS TO RESOURCES, ANSWERING QUESTIONS. 
          AGAIN, BEING PRESENT AT OUR TOWN HALLS. AS I MENTIONED IN THE LAST CONVERSATION, WHEN WE HAD OUR TOWN HALL, WHAT WE HEARD FROM DISTRICT 5 RESIDENTS IS THEY UNDERSTOOD WE HAVE A RESPONSIBILITY TO PROTECT OUR WATER QUALITY AND A RESPONSIBILITY TO INVEST IN INFRASTRUCTURE THAT PROTECTS OUR WATER. 
          AGAIN, AND WATER QUALITY. AS THE DISTRICT THAT'S HOME TO 78207 ZIP CODE, I'M GRATEFUL TO SEE THE RECOMMENDATIONS IN TERMS OF THE UPLIFT PROGRAM AND THE BENEFIT THAT DISTRICT 5 RESIDENTS WOULD SEE IN TERMS OF THE SUPPORT. 
          AS LIKE MANY FAMILIES NAVIGATE THIS ECONOMIC INSTABILITY. 
          SO AT THE SAME TIME, SAWS AGAIN, GRATEFUL THAT YOU'RE EXPANDING THE UPLIFT PROGRAM AND JUST AGAIN THE COMMUNITY OUTREACH. ALWAYS BEING THERE FOR DISTRICT 5 RESIDENTS. JUST WANTED TO COMMEND YOU ALL FOR NAVIGATING THESE DIFFICULT TIMES. I BELIEVE WE HAVE A RESPONSIBILITY TO PROTECT THE PUBLIC HEALTH AND SAFETY OF SAN ANTONIO RESIDENTS. THIS ISN'T A CONVERSATION THAT I TAKE LIGHTLY BECAUSE OF THE IMPACTS. LIKE MY SOUTH SIDE COUNCIL MEMBERS, WE LACK BASIC INFRASTRUCTURE. MANY OF OUR FAMILIES LACK LATERAL ACCESS, ARE STILL ON SEPTIC TANKS. WHAT YOU ARE PROPOSING HERE IS MODERNIZING THAT INFRASTRUCTURE FOR DISTRICT 5 AND SOUTH SIDE RESIDENTS THAT HAVE LONG BEEN LEFT BEHIND. THANK YOU. 
          >> MAYOR JONES: WOULD ANYONE ELSE LIKE TO SPEAK? I'M ASKING FOR THE SECOND TIME. ANYONE ELSE? NO? ROBERT, THANK YOU, AGAIN FOR ALL THE HARD WORK. THANK YOU, CECILIA. 
          THANK YOU, ANDREA, EVERYBODY. GAVINO, ALL THE FOLKS THAT DO SUCH GOOD WORK. I WANT TO THANK AGAIN ALSO THE BOARD MEMBERS THAT TOOK THE TIME TO BE HERE. I WANT TO RECOGNIZE THE SAWS BOARD CHAIR, WHO DOES A GREAT JOB REALLY GOING THROUGH THOSE WITH A FINE-TOOTH COMB. 
          DOESN'T SHE, ROBERT? [LAUGHTER] BUT YOU KNOW WHAT? THAT'S WHAT THE COMMUNITY DESERVES AND I'M THANKFUL FOR THAT WORK. 
          OF COURSE, THANKS, TROY, JEFF AS WELL FOR ENSURING THAT OUR LENS IS APPLIED TO THOSE. AND WE'RE QUESTIONING THOSE ASSUMPTIONS. 
          THAT'S WHAT THE PEOPLE DESERVE. THANK YOU AND WE LOOK FORWARD TO A GOOD DISCUSSION ON THIS NEXT WEEK. THANK YOU. 
          THE TIME IS 3:57. THE MEETING IS ADJOURNED. 
* This transcript was compiled from uncorrected Closed Captioning.