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[00:00:49]

>> GOOD MORNING.

WELCOME TO THE CITY COUNCIL REGULAR MEETING OF MAY 10, 2018.

>> MAYOR, WE DO HAVE A QUORUM.

>> MAYOR NIRENBERG: GOOD MORNING.

WELCOME EVERYONE TO OUR CITY COUNCIL A SESSION AGENDA.

THE TIME NOW IS 9:11 A.M.

[1. Invocation]

WE'LL GET STARTED WITH AN INVOCATION, GUEST OF COUNCIL MEMBER SANDOVAL.

>> SANDOVAL: THANK YOU, MAYOR.

GOOD MORNING, EVERYONE.

IT IS MY GREAT, GREAT PLEASURE AND HONOR TO INTRODUCE MS. VIRGINIA VALENZUELA.

SHE CURRENTLY SERVES AS PASTORAL ASSOCIATE AT ST. PAUL CATHOLIC CHURCH.

HER PREVIOUS POSITIONS INCLUDE ASSOCIATE DIRECTOR AT OUR LADY OF THE LAKE UNIVERSITY AND DIRECTOR OF COMMUNITY OUTREACH AND SPIRITUALTY AT MORNINGSIDE MINISTRIES.

MS. VALENZUELA HOLDS A MASTERS IN SOCIAL WORK FROM THE LAKE AND A MASTERS IN PASTORAL MINISTRY FROM THE SCHOOL OF THEOLOGY.

MS. VALENZUELA IS A 40 PLUS YEAR RESIDENT OF DISTRICT 7 AND BELIEVES STRONGLY IN THE IMPORTANCE OF COMMUNITY BUILDING AND ENGAGEMENT.

HER FOUR DAUGHTERS ALL ATTENDED PUBLIC SCHOOL, PROUDLY GRADUATING FROM JEFFERSON HIGH SCHOOL.

AND I HAVE TO SAY I KNOW MS. VALENZUELA SINCE I WAS IN THE FIRST GRADE.

WHEN I WAS IN FIRST GRADE WITH BECKY, YOUR DAUGHTER.

AND I HAVE ALWAYS, ALWAYS ADMIRED THE WORK THAT YOU'VE DONE AT THE CHURCH.

YOU HAVE ALWAYS BEEN A ROLE MODEL FOR ME, SPIRITUALLY SPEAKING AT THE CHURCH AND IN OUR COMMUNITY.

AND I JUST CAN'T TELL YOU HOW PROUD I AM TO BE ABLE TO INTRODUCE YOU HERE TODAY AND HOW THANKFUL I AM THAT YOU ACCEPTED THE INVITATION.

AND I WANT YOU TO KNOW, OF COURSE THERE IS A PASTOR IN AUDIO] AND I DID NOT INVITE HIM TO GIVE THE INVOCATION.

AND I HOPE HE'S GOING TO GET OVER THAT.

BUT THANK YOU VERY MUCH, VIRGINIA, FOR BEING HERE.

>> THANK YOU SO MUCH.

I APPRECIATE IT.

FIRST OF ALL, I WANT TO THANK YOU FOR INVITING ME TO SHARE A REFLECTION WITH YOU THIS MORNING.

IT IS INDEED AN HONOR.

WHILE IN AMERICA WE CELEBRATE MOTHER'S DAY THIS COMING SUNDAY, IN MEXICO IT IS CELEBRATED MAY 10TH.

WE ASK OUR LADY OF GUADALUPE FOR HER ASSISTANCE BECAUSE, AS ALL OF US KNOW, IF WE WANT THE LORD TO LISTEN TO OUR PRAYERS WE GO TO HIS MOTHER FIRST.

HE NEVER SAYS NO TO HER.

AND SO WE PRAY.

GOOD AND GENTLE GOD, WE PRAY IN GRATITUDE FOR OUR MOTHERS AND FOR ALL THE WOMEN WHO HAVE JOINED WITH YOU IN THE WONDER OF BRINGING FORTH NEW LIFE.

GRANT TO ALL MOTHERS THE COURAGE THEY NEED TO FACE THE UNCERTAIN FUTURE THAT LIFE WITH CHILDREN ALWAYS BRINGS.

GRANT US LORD GOD A VISION OF YOUR WORLD AS YOUR LOVE WOULD HAVE IT.

A WORLD WHERE THE WEAK ARE PROTECTED AND NONE GO HUNGRY OR POOR.

A WORLD WHERE THE RICH IS OF CREATION ARE SHARED AND IN AUDIO].

A WORLD WHERE DIFFERENT RACES AND CULTURES LIVE IN HARMONY AND MUTUAL RESPECT.

A WORLD WHERE PEACE IS BUILT WITH JUSTICE AND JUSTICE IS GUIDED BY LOVE.

GIVE US THE INSPIRATION AND COURAGE TO BUILD IT.

WE ASK THAT YOU GIVE OUR LEADERS

[00:05:02]

WISDOM AND COURAGE TO MAKE THE BEST DECISIONS FOR ALL OF SAN ANTONIO.

WE THANK YOU FOR THE OPPORTUNITY THAT WE HAVE TO LIVE IN SUCH A WONDERFUL CITY.

AND WE ASK FOR YOUR BLESSING UPON THIS MEETING AND UPON THESE LEADERS.

IN ALL THIS WE ASK IN YOUR NAME, AMEN.

[2. Pledge of Allegiance]

>> MAYOR NIRENBERG: THANK YOU, PASTOR VALENZUELA.

WE HAVE AN ANNOUNCEMENT FOR TRANSLATION SERVICES.

>> THANK YOU, MAYOR.

[3. Approval of Minutes for the City Council Regular Meetings of April 4 - 5, 2018 and the Regular and Special Meetings of April 11 - 12, 2018.]

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THE FIRST ITEM FOR ACTION ON OUR AGENDA TODAY IS THE APPROVAL OF MINUTES FOR OUR CITY COUNCIL REGULAR MEETINGS FROM APRIL 4 THROUGH 5.

AND THE REGULAR AND SPECIAL MEETINGS OF APRIL 11 AND 12.

THERE'S A MOTION AND A SECOND FOR APPROVAL OF THE CITY COUNCIL MEETING MINUTES AS READ ON ITEM 3.

PLEASE VOTE.

[Additional Item]

MOTION CARRIES.

NOW I WOULD LIKE TO RECOGNIZE MY COLLEAGUE, COUNCILMAN TREVINO, WITH A POINT OF PERSONAL PRIVILEGE.

>> TREVINO: THANK YOU, MAYOR.

IT WAS SAID DURING OUR INVOCATION, BUT IT IS A SPECIAL DAY.

IT IS MEXICAN MOTHER'S DAY AND I WANT TO WISH MY MOTHER A HAPPY MOTHER'S DAY.

I GOT TO SPEAK TO HER BRIEFLY THIS MORNING BUT IT IS A SPECIAL TIME BECAUSE IN MEXICO IT'S ALWAYS MAY 10TH.

AND THAT'S VERY UNIQUE AND VERY SPECIAL.

AS MANY PEOPLE SAY, ITS ONLY RIVAL IS IT'S A VERY IMPORTANT HOLIDAY FOR A LOT OF US.

I JUST WANT TO SAY THANK YOU, MOM.

I LOVE YOU.

>> MAYOR NIRENBERG: BEFORE EVERYBODY TAPS IN, I WOULD RECOMMEND THAT WE ALL SAY ONE COLLECTIVE HAPPY MOTHER'S DAY ON THREE.

ONE, TWO, THREE.

>> HAPPY MOTHER'S DAY!

[Consent Agenda]

>> MAYOR NIRENBERG: ALL RIGHT.

I'LL ASK MY COLLEAGUES NOW FOR WHICH THERE ARE ANY ITEMS THEY WOULD LIKE PULLED FROM THE AGENDA.

I HAVE ITEMS 11, 13, AND ITEM NO. 25 PULLED FOR INDIVIDUAL CONSIDERATION.

ARE THERE ANY OTHERS? COUNCILWOMAN GONZALES.

>> GONZALES: ITEM NO. 24.

>> MAYOR NIRENBERG: ANY OTHERS? IF NOT, I'LL TAKE A MOTION FOR THE BALANCE OF THE CONSENT AGENDA, ALL ITEMS SAVE FOR 11, 13, 24, AND 25.

THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEMS ON THE CONSENT AGENDA.

COUNCILWOMAN VIAGRAN.

>> VIAGRAN: I JUST WANTED TO THANK ALL OF OUR APPOINTEES FOR PRE-K 4 SA AS WELL AS THOSE THAT ARE GOING TO BE SERVING ON THE OVERSIGHT COMMITTEE WITH OUR BOND.

SO THANK YOU ALL FOR YOUR APPLICATIONS AND THANK YOU ALL FOR STEPPING UP AND SERVING.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.

THERE IS A MOTION AND A SECOND FOR THE BALANCE OF THE CONSENT AGENDA, WHICH IS ALL ITEMS SAVE FOR 11, 13, 24, AND 25.

PLEASE VOTE.

[11. Ordinance approving the Historic City Hall Renovation Project by appropriating $38,000,000.00 in Certificates of Obligation to the Project, approving a Design-Build Services Agreement with Guido Brothers Construction Company in an amount not to exceed $30,000,000.00 for the design and construction of the Project; and approving related contracts for the Project; and ratifying related expenses in the amount of $290,748.00 from the Capital Improvements Fund; and amending the FY 2018-2023 Capital Improvement Budget. [Lori Houston, Assistant City Manager; Mike Frisbie, Director, Transportation & Capital Improvements] ]

MOTION CARRIES.

ITEM NO. 11.

>> ITEM NO. 11 IS AN ORDINANCE APPROVING THE HISTORIC CITY HALL RENOVATION PROJECT BY APPROPRIATING $38 MILLION IN CERTIFICATES OF OBLIGATION TO THE PROJECT APPROVING A DESIGN-BUILD SERVICES AGREEMENT WITH GUIDO BROTHERS CONSTRUCTION COMPANY IN AN AMOUNT NOT TO EXCEED $30 MILLION FOR THE DESIGN AND CONSTRUCTION OF THE PROJECT AND APPROVING RELATED CONTRACTS FOR THE PROJECT AND RATIFYING RELATED EXPENSES IN THE AMOUNT OF $290,748 FROM THE CAPITAL IMPROVEMENTS FUND AND AMENDING THE FISCAL YEAR 2018-2023 CAPITAL IMPROVEMENT BUDGET.

>> GOOD MORNING.

THIS ITEM REQUESTS CONSIDERATION OF SEVERAL ITEMS RELATED TO THE HISTORIC CITY HALL RESTORATION.

AND TODAY'S PRESENTATION WILL INCLUDE A BRIEFING OF THE P3 TRANSACTION THAT CITY COUNCIL AUTHORIZED IN JUNE OF 2015.

WE'LL TALK ABOUT THE CITY HALL RESTORATION PROJECT AND HOW THE TOWER AND THE CITY HALL RESTORATION PROJECT WILL BE

[00:10:02]

WORKING TOGETHER SIMULTANEOUSLY, AND WE'LL TALK ABOUT THE SCHEDULE.

AND THEN I'M GOING TO TRANSITION OVER TO MIKE FRISBIE WHO WILL TALK ABOUT THE CONTRACT WITH GUIDO CONSTRUCTION.

SO IT WAS ALMOST THREE YEARS AGO TODAY THAT CITY COUNCIL AUTHORIZED A MASTER DEVELOPMENT AGREEMENT WITH WESTERN URBAN AND FROST BANK.

THAT FACILITATED THE FIRST OFFICE TOWER TO BE CONSTRUCTED IN DOWNTOWN SAN ANTONIO SINCE 1989.

AND SEVERAL OF YOU HAVE ALREADY TOURED THE FACILITY.

THAT IS A FACILITY THAT'S GOING UP RIGHT NOW ON THE CORNER OF HOUSTON AND FLORES STREET.

MORE IMPORTANTLY, THAT P3 TRANSACTION ALLOWED FOR THE CONSOLIDATION OF THE ADMINISTRATIVE OFFICES FOR 24 CITY DEPARTMENTS.

CURRENTLY WE ARE SPREAD AMONG SIX BUILDINGS.

WE SPEND ABOUT $3.8 MILLION IN LEASE PAYMENTS TO RENT FACILITIES.

AND SO THIS TRANSACTION WILL ALLOW US TO OWN OUR OWN BUILDING.

WE'LL BE USING THAT $3.8 MILLION TO SERVICE DEBT.

AND, MORE IMPORTANTLY, THAT ENTIRE TOWER IS SELF-SUPPORTING.

SO ALL THE REVENUE COMING FROM THE LEASES, THE $3.8 MILLION, THE LEASES THAT WE WILL HAVE WITH THIRD PARTIES FOR THE FIVE FLOORS IT WILL HAVE AVAILABLE FOR LEASE, AS WELL AS THE RETAIL LEASES.

ALL OF THAT WILL HELP US SUPPORT THE DEBT NECESSARY TO FACILITATE THE FROST TOWER TRANSACTION.

WE MADE THAT COMMITMENT TO COUNCIL WHEN WE BROUGHT THAT FORWARD IN JUNE OF 2015.

AND THAT TRANSACTION IS NET NEUTRAL TO THE TAXPAYERS.

THAT TRANSACTION ALSO INCLUDED SEVERAL ITEMS TO INCLUDE THE SALE OF MUNICIPAL PLAZA BUILDING, WHICH IS THIS BUILDING.

HOWEVER CITY COUNCIL CHAMBERS WILL BE RETAINED BY THE CITY AS WELL AS THE B ROOM.

SO WE WILL ALWAYS USE AND OWN THIS FACILITY.

WE ALSO SOLD A SMALL PARKING LOT IN THE NORTHERN PART OF DOWNTOWN UNITS.

AS I MENTIONED EARLIER, IT WILL ALLOW US TO CONSOLIDATE 24 DEPARTMENTS.

THAT WILL ALLOW FOR MORE PRODUCTIVITY, EFFICIENCIES, WE'LL STREAMLINE CITY OPERATIONS AND IMPROVE COLLABORATION.

IT WILL CENTRALIZE OUR KEY PUBLIC OFFICES.

AND THEN THAT FACILITY IS IN CLOSE PROXIMITY TO CITY HALL AND TO THE MUNICIPAL PLAZA.

THAT'S REALLY IMPORTANT BECAUSE RIGHT NOW WE ARE SPREAD AMONG DOWNTOWN.

WE HAVE AN OFFICE ON SOUTH FLORES.

WE HAVE AN OFFICE ON COMMERCE STREET.

WE HAVE AN OFFICE ON THE SOUTHEAST PART OF TOWN.

SO WE ARE CONSOLIDATING ALL OF THOSE TO BE IN ONE TOWER AND IT WILL BE MORE PRODUCTIVE.

NOW THIS OPPORTUNITY ALSO ALLOWS US TO RESTORE CITY HALL.

WE NEED TO RESTORE CITY HALL BECAUSE WE KNOW THAT THE MECHANICAL, ELECTRICAL, AND PLUMBING SYSTEMS ARE FAILING.

WE DID DO AN ASSESSMENT LAST YEAR AND WE SHOWED THAT ALL OF THOSE SYSTEMS NEED TO BE REPLACED.

THE LAST TIME THEY WERE REPLACED, IN THE 1980S, THERE WAS A RENOVATION IN 1994.

BUT IT'S TIME FOR US TO UPGRADE AND REPLACE THE ELEVATOR SYSTEM, THE MECHANICAL SYSTEM, THE ELECTRICAL SYSTEM, AND PLUMBING SYSTEM.

AND MIKE FRISBIE WILL TALK MORE ABOUT THE NEEDS OF THE CITY HALL BUILDING DURING HIS PRESENTATION.

BUT THE BUILDING WAS BUILT IN 1927.

WE HAVE A FOURTH FLOOR ADDITION.

IT'S A TOTAL OF 52,000 SQUARE FEET AND HAS HISTORICALLY BEEN THE LOCATION FOR THE MAYOR AND CITY HALL.

AND WE WANT TO CONTINUE THAT.

AND WE ALSO WANT TO BE THE BEST PRACTICE FOR RESTORATION AND RENOVATION OF HISTORIC BUILDINGS.

THE OPPORTUNITY WITH THIS CONSOLIDATION AND HAVING THREE BUILDINGS, CITY HALL, THE FROST BANK TOWER, PLAZA DE ARMAS, OUR CENTRAL OFFICES, WE HAD AN OPPORTUNITY TO LOOK AT AMENITIES THAT WE COULD INCLUDE IN THE FROST BANK TOWER SO WE COULD BE AN EMPLOYER OF CHOICE.

WE WANT TO MAKE SURE THAT OUR EMPLOYEES HAVE AN INCREASED QUALITY OF LIFE, AND WE CAN HELP THEM WITH THAT.

SO WE DID DO A SURVEY OF OUR 1500 EMPLOYEES THAT WILL BE GOING INTO THIS TOWER AND ASKED THEM QUESTIONS LIKE WOULD YOU USE A CAFETERIA? WOULD YOU USE A DAY CARE? WOULD YOU USE A WELLNESS FACILITY OR A GYM? AND THE RESPONSE WAS OVERWHELMINGLY YES.

THEY WOULD USE ALL THOSE FACILITIES.

83% WOULD USE A GYM AT LEAST WEEKLY.

77% WOULD USE A HEALTH CARE CLINIC.

RIGHT NOW WE DO HAVE A PARTNERSHIP WITH A SEPARATE THIRD PARTY MEDICAL CLINIC BUT THIS WOULD ALLOW US TO HAVE ONE HOUSED IN THE BUILDING WHERE ANY CITY EMPLOYEE CAN GO IF THEY ARE SICK AND NEED TO BE CHECKED ON.

WE ARE ALSO LOOKING AT PUTTING SHOWERS IN THE FROST BANK

[00:15:01]

TOWERS.

SOME SAID THEY WOULD USE BIKE STORAGE.

WE KNOW THERE IS A NEED FOR A CAFETERIA.

A DRY CLEANER WAS ONE OF THE REQUESTED AMENITIES, AS WELL AS WE ARE EXPLORING A CHILD CARE CENTER.

SO ALL OF THOSE OPPORTUNITIES WILL BE CONSIDERED AS WE DESIGN THE FROST TOWER.

BUT THEY WILL BE AMENITIES THAT WILL SERVICE CITY HALL, PLAZA DE ARMAS, AS WELL AS THE OCCUPANTS OF FROST TOWER.

BUT TODAY'S PRESENTATION REALLY IS GOING TO FOCUS ON WHERE WE ARE IN THE PROCESS.

SO WE'LL BE TALKING MORE ABOUT CITY HALL.

BUT I WANT TO STRESS THAT THESE TWO PROJECTS WILL BE UNDER CONSTRUCTION SIMULTANEOUSLY.

AND SO TODAY WE'RE BRINGING FORWARD THE DESIGN-BUILD CONTRACT FOR THE CITY HALL RESTORATION PROJECT.

WE ARE CURRENTLY IN THE PROCESS OF SELECTING A DESIGN-BUILD TEAM FOR THE FROST BANK TOWER RENOVATION, AND WE'LL BRING THAT FORWARD TO COUNCIL IN SEPTEMBER.

HOWEVER, IN ORDER FOR US TO MEET THE TIMELINE AND HAVE CITY HALL RESTORED IN EARLY 2020 AND BE ABLE TO MOVE CITY COUNCIL OUT OF THEIR OFFICES DURING THE JULY RECESS, WE ARE REQUESTING COUNCIL ACTION ON THE DESIGN-BUILD CONTRACT.

WE'LL BE ABLE TO START CONSTRUCTION OF THAT FACILITY AND THE RESTORATION OF CITY HALL IN AUGUST-SEPTEMBER TIME-FRAME WITH THE VACATION OF THE TENANTS DURING THE JULY RECESS.

OVERALL, THE PROJECT WILL BE COMPLETE IN EARLY 2020.

AND THEN FROST BANK TOWER WILL HAVE ALREADY BEEN UNDER CONSTRUCTION FOR SIX MONTHS.

AND FROST BANK TOWER WILL BE COMPLETE IN OCTOBER 2020 OR EARLY 2021.

SO NOW TO TALK MORE ABOUT THE DESIGN-BUILD CONTRACT, I WOULD LIKE TO ASK MIKE FRISBIE TO COME UP TO THE PODIUM AND HE WILL BE DISCUSSING OUR CONTRACT AND THE OTHER ACTIONS WE HAVE ON TODAY'S AGENDA.

>> THANK YOU, LORI.

GOOD MORNING, MAYOR AND CITY COUNCIL.

YOU MIGHT BUDGET PROCESS WE TOUCHED ON THIS PROJECT SOME, BUT THE MORE EXTENSIVE DISCUSSION WAS OCTOBER OF LAST YEAR WHERE WE DID A FULL-BLOWN PRESENTATION.

I'M GOING TO RECAP A LITTLE BIT OF THAT IN THIS PRESENTATION, ESPECIALLY FOR OUR AUDIENCE SO THEY KNOW SOME OF THE CONDITIONS THAT WE'RE UP AGAINST AT CITY HALL.

WE DID GO THROUGH, SINCE B SESSION, WE HAVE GONE THROUGH THE HIGH-PROFILE PROCESS FOR THE SOLICITATION PROCESS FOR THIS EFFORT.

LAST YEAR WE DID A FULL-BLOWN FACILITY ASSESSMENT.

AS LORI MENTIONED IT COVERED EVERYTHING FROM EXTERIOR TO INTERIOR, ALL THE SYSTEMS. AS YOU CAN IMAGINE, THE ORIGINAL BUILDING IS OVER 125 YEARS OLD.

THE NEW ADDITION WAS IN THE 1920S.

SO THE NEW ADDITION IS OVER 90 YEARS OLD.

OBVIOUSLY, AS A BUILDING ENVELOPE AND THE SYSTEM IS WELL BEYOND ITS USEFUL LIFE AND IN NEED OF A HOLISTIC PROJECT TO SOLVE THOSE ISSUES.

SO LET'S GET INTO THAT A LITTLE BIT.

I DO WANT TO RECOGNIZE JORGE PEREZ AND HIS TEAM AT BUILDING EQUIPMENT SERVICES.

THEY DO A GREAT JOB, NOT ONLY WITH THIS FACILITY BUT A LOT OF FACILITIES IN THE CITY.

OF COURSE CITY HALL IS A DAILY EFFORT TO KEEP THE BAND-AIDS ON THE DIFFERENT SYSTEMS TO MAKE IT WORK.

BUT THEY'RE DOING THE BEST THEY CAN GIVEN THE SITUATION.

SO IF YOU LOOK AT THE MECHANICAL SYSTEMS, YOU KNOW, YOU CAN LOOK AT SOME OF THESE PICTURES AND REALIZE SOME OF THE AGING OF THE INFRASTRUCTURE.

THE HEATING AND AIR-CONDITIONING SYSTEM IS BEYOND ITS USEFUL LIFE AND NEEDS TO BE REPLACED.

WHEN YOU LOOK AT THE ELECTRICAL AND PLUMBING, THE PLUMBING -- A LOT OF THE PLUMBING IS OVER 50 YEARS OLD.

YOU CAN SEE THE CONDITIONS THERE.

YOU KNOW, THAT CORRODED CAST IRON PIPE, MAYOR, THAT'S CLOSE TO YOUR OFFICE.

WE HAD TO REPLACE THAT SEWER LINE.

SORRY ABOUT THAT.

BUT YOU CAN SEE IN THE UPPER LEFT THE OLD CIRCUIT BOARD THERE, THE OLD FUSE BOX.

AND THAT ELECTRICAL COMPANY WENT OUT OF BUSINESS SOME TIME AGO.

SO GETTING PARTS FOR THE SYSTEM IS ALMOST IMPOSSIBLE TO FIND TODAY.

THERE'S A LOT OF DIFFERENT ISSUES.

ALSO THROUGHOUT THE YEARS -- IN A FACILITY LIKE THIS THE FIRE PROTECTION -- PART OF THAT FIRE PROTECTION IS THE LAYERS BETWEEN THE FLOORS.

THE CEILING AND THE FLOORS IN BETWEEN.

BUT THROUGHOUT THE YEARS YOU CAN SEE THE DIFFERENT PENETRATIONS THAT HAVE TAKEN PLACE THROUGH THERE, THE LOWER RIGHT-HAND SIDE.

SO THAT FIRE PROTECTION HAS BEEN COMPROMISED FOR SURE THROUGHOUT THE FACILITY AS WELL.

THE EXTERIOR CONDITION.

YOU KNOW, IF YOU STAND BACK A WAYS FROM CITY HALL, IT'S A BEAUTIFUL FACILITY.

AS YOU GET CLOSER, YOU REALIZE THAT THERE'S LOTS OF EXTERIOR CRACKING.

WE HAVE HAD DIFFERENT CHUNKS OF THE FACILITY ACTUALLY FALL.

WE HAVE HAD WINDOWS SLIP WITHIN THE FRAMES.

SO IT IS DEFINITELY

[00:20:02]

DETERIORATED.

THE WHOLE BUILDING ENVELOPE IS COMPROMISED.

THE LEAKING THAT HAPPENS, YOU CAN PUT A NEW ROOF ON BUT BECAUSE THE REST OF THE BUILDING ENVELOPE IS SO AGED, YOU'RE GOING TO HAVE WATER PENETRATION THERE ALMOST EVERY TIME IT RAINS THERE'S GOING TO BE SOME PENETRATION THROUGH THE FACILITY.

A COUPLE OF SHOTS INSIDE.

YOU'RE ALL VERY FAMILIAR WITH THIS.

YOU WORK IN THIS ENVIRONMENT SO YOU SEE THE DAMAGE THAT'S DONE FROM WATER PENETRATION.

I KNOW THE I.T. CLOSET THAT HAS SOME OF THE IMPORTANT I.T.

INFRASTRUCTURE HAS LEAKS IN IT AS WELL, WHICH IS A MAJOR PROBLEM, OBVIOUSLY.

WATER AND I.T. EQUIPMENT DON'T MIX WELL.

SO IN SUMMARY, THERE'S ALL FACETS OF THE FACILITY NEED TO BE REPLACED.

AND THAT'S WHY WE'RE LOOKING AT A HOLISTIC APPROACH FOR THIS PROJECT VERSUS A PIECEMEAL APPROACH.

REALLY, WE FEEL THE TIME IS NOW FOR THIS BECAUSE IN TODAY'S ECONOMIC ENVIRONMENT, WE EXPECT A PROJECT LIKE THIS, OR ANY OF OUR PROJECTS, TO INCREASE IN COST AT LEAST 5% PER YEAR.

SO ON A $38 MILLION PROJECT, WE'RE LOOKING AT $2 MILLION A YEAR THE LONGER WE WAIT.

WE DON'T WANT TO GET TO THE POINT WHERE -- LET ME BACK UP ONE.

WE DON'T WANT TO GET TO THE POINT WHERE WE WERE WITH THE PLAZA DE ARMAS FACILITY A NUMBER OF YEARS AGO.

WE HAD TO GET EVERYBODY OUT OF THAT FACILITY FOR LIFE SAFETY PURPOSES WITH PLAZA DE ARMAS, AND THEN INVEST IN A PROJECT TO GET THAT.

OF COURSE IT'S A BEAUTIFUL HISTORIC RENOVATION PROJECT TODAY.

BUT AT THAT TIME WE WAITED A LITTLE TOO LONG TO GET TO THAT PROJECT, AND WE DON'T WANT TO HAVE THAT HAPPEN WITH CITY HALL.

WE WANT EXPECT WITHIN A 10-YEAR PERIOD IT WOULD BE IN THAT CONDITION WHERE WE WOULD NEED TO CLOSE IT TO DO A PROJECT.

WE CAN DO A BIG PROJECT NOW, DO IT HOLISTICALLY, OR WE CAN WAIT, WHICH WILL COST MORE MONEY.

INEVITABLY WE ARE GOING TO NEED TO DO THE PROJECT.

OKAY.

OBVIOUSLY YOU KNOW THAT THE CITY HALL IS ON THE NATIONAL REGISTER FOR HISTORIC PLACES.

IT IS THE OLDEST -- ONE OF THE OLDEST CONTINUOUSLY OPERATING PUBLIC FACILITIES IN THE NATION.

THE FULL RESTORATION IS THE APPROACH THAT I KNOW THE SAN ANTONIO CONSERVATION SOCIETY IS LOOKING FOR VERSUS A PIECEMEAL APPROACH.

THAT IS THE BEST WAY TO ENSURE THAT YOU PRESERVE AND PROTECT THE HISTORIC NATURE OF THIS FACILITY, WORKING WITH TEXAS HISTORIC COMMISSION AND OFFICE OF HISTORIC PRESERVATION.

ONE OF THE THINGS TO THINK ABOUT TOO, THIS IS THE TRICENTENNIAL YEAR.

AND THIS WOULD BE A GREAT LEGACY PROJECT.

THIS IS GOING TO SET THIS FACILITY UP FOR THE NEXT 100 YEARS WITH PROPER PREVENTIVE MAINTENANCE.

WHAT BETTER YEAR TO DO IT THAN IN THE TRICENTENNIAL YEAR? ONE VERY IMPORTANT COMPONENT OF THIS IS THE ACCESSIBILITY PART OF THIS PROJECT.

COUNCILMAN TREVINO, GORDON HARTMAN TEAMED UP TOGETHER WITH THE LOCAL CHAPTER OF THE AIA, AMERICAN INSTITUTE OF ARCHITECTS.

WE HAVE TORI HERE, THE EXECUTIVE DIRECTOR.

THANK YOU FOR BEING HERE TODAY.

THEY HELD A CONTEST AND SET UP A PANEL OF JUDGES TO REVIEW THE 22 SUBMITTALS THAT CAME IN, MAKING SURE THEY MET ACCESSIBILITY STANDARDS FOR FEDERALLY AND IN TEXAS AS WELL.

THEY HAD 35% FOR DESIGN INNOVATION.

35% FOR HISTORIC APPROPRIATENESS.

AND THEN 30% FOR FEASIBILITY AS WELL.

SO THROUGH THAT PROCESS THE AWARD-WINNING SUBMITTAL WAS BEATTY PALMER'S SUBMISSION.

CONGRATULATIONS TO MICHAEL BEATTY AND HIS TEAM.

THEY HAVE DONE A LOT OF PROJECTS HERE IN SAN ANTONIO.

IT'S THE SAN ANTONIO-HEADQUARTERED FIRM.

THEY HAVE DONE THE RIVER WALK DESIGN WORK AND SO FORTH.

GREAT COMPANY, GREAT DESIGN.

SO WE PLAN TO NOW INCORPORATE THIS DESIGN CONCEPT INTO THE DESIGN-BUILD PROJECT AS WE MOVE FORWARD.

SO THE PROJECT SCOPE -- AGAIN, THIS IS A HOLISTIC APPROACH.

IT'S A $38 MILLION PROJECT ALL IN.

THAT'S THE DESIGN AND CONSTRUCTION.

EVERYTHING RELATED TO THAT.

DOING IT ALL AT ONCE CREATES EFFICIENCIES, TIMELINESS.

WE CAN DO IT QUICKER.

WE INCORPORATE THE ACCESSIBILITY FEATURE INTO IT ON THE EAST SIDE THERE.

WE EXPLORED A COUPLE OF OTHER OPTIONS.

YOU ALL RECEIVED A MEMO FROM CITY MANAGER SHERYL SCULLEY BACK ON OCTOBER 25 WHERE WE SHOWED A COUPLE OF OTHER OPTIONS.

I KNOW, COUNCILMAN PERRY, WE HAVE EXPLORED SOME DIFFERENT OPTIONS WITH YOU.

ONE OF THEM WAS AN OPTION TO BUILD A NEW CITY HALL OF SIMILAR SIZE.

AND WHAT WOULD THAT TAKE TO BUILD A NEW CITY HALL? AND THEN MAYBE TAKE THE CURRENT

[00:25:01]

CITY HALL AND JUST RENOVATE ONE FLOOR AND LET THAT BE OPEN, POTENTIALLY AS A MUSEUM AND NOT NECESSARILY IMPROVE THE OTHER FLOORS AT THIS TIME.

ALL IN, COLLECTIVELY, A NEW CITY HALL AND ADDRESSING ONE FLOOR OF THE EXISTING CITY HALL, THAT'S A $40 MILLION DEAL RIGHT THERE.

AND THEN YOU'RE ENDING UP WITH SEVERAL FLOORS IN THE EXISTING CITY HALL THAT ARE STILL DILAPIDATED AND DETERIORATING.

WHAT'S DIFFICULT ABOUT JUST DOING ONE FLOOR OF A HISTORIC BUILDING IS ALL OF THE UTILITIES GO VERTICALLY THROUGH THE BUILDING.

AND THEY NEED TO BE REPLACED.

SO HOW DO YOU REPLACE EVERYTHING UP AND DOWN AND ONLY ADDRESS ONE FLOOR? VERY DIFFICULT TO DO THAT.

THE OTHER OPTION WE EXPLORED WAS HOW ABOUT IMPROVING MORE FLOORS OVER IN THE FROST TOWER FOR THE 150 PEOPLE THAT ARE IN CITY HALL TO MOVE INTO FROST.

AND THEN STILL MAYBE DO ONE FLOOR OF CITY HALL RENOVATION TO OPEN UP THAT FOR THE PUBLIC.

AND THAT WAS A $46 MILLION OPTION, ALL IN, TO DO THAT.

STILL COMING BACK TO WHAT WE FEEL IS THE BEST OPTION, AND THAT IS THE $38 MILLION COMPREHENSIVE RENOVATION OF THE CURRENT CITY HALL.

YOU KNOW, ON A QUARTERLY BASIS I MEET WITH THE SAN ANTONIO CONSERVATION SOCIETY TO GO OVER PROJECTS AND PROGRAMS. WE HAVE TALKED A LITTLE BIT ABOUT THIS IMPORTANT PROJECT, OBVIOUSLY.

AND, YOU KNOW, IN TALKING WITH DR. VINCENT MICHAEL ABOUT THIS AND ALSO WE'VE GOT PATTY SAENZ HERE, THE FIRST VICE PRESIDENT HERE.

THANK YOU VERY MUCH, PATTY, FOR BEING HERE.

YOU KNOW, THEY VERY MUCH WANT TO SEE A HOLISTIC APPROACH TO THIS AS WELL.

AND THEY SAY WHAT BETTER WAY TO REALLY HONOR A HISTORIC BUILDING THAN TO MAKE THE ENTIRE BUILDING ACCESSIBLE FOR FULL USE BY THE PUBLIC AND BY THE CITY.

SO THAT IS THE INTENTION HERE.

OKAY.

WE HAVE JUST TO SHOW YOU A LITTLE BIT ABOUT THE LAYOUT THAT IS BEING PROPOSED.

WE HAVE A PROGRAMMING DOCUMENT THAT'S BEEN WORKED ON.

THIS IS NOT THE DESIGN, SO WE'LL GO THROUGH THAT DESIGN PROCESS IF YOU ALL APPROVE IT TODAY.

AND THE FIRST FLOOR OF THE BASEMENT LEVEL.

THAT WOULD BE ENVISIONED AS THE FIRST FLOOR, AND THE BASEMENT WOULD BE OPEN TO THE PUBLIC.

THE PUBLIC COULD COME IN, POTENTIALLY RESERVE CONFERENCE ROOMS. WE KNOW CONFERENCE SPACE IS VERY LIMITED IN CITY HALL TODAY, SO THERE WOULD BE A LOT OF CONFERENCE ROOMS IN THIS FACILITY, ESPECIALLY IN THAT BASEMENT FIRST FLOOR AREA.

WE WOULD HAVE AN EXPANDED MEDIA BRIEFING AREA ON THE FIRST FLOOR WHERE IT IS TODAY, BUT A BIGGER FOOTPRINT.

THEN SECURITY WOULD OF COURSE BE ON THAT FIRST FLOOR.

THEN AS YOU GO UP FROM THERE YOU WOULD HAVE THE MAYOR, CITY MANAGER, CITY ATTORNEY, AND CITY CLERK ON THAT NEXT LEVEL UP, THE SECOND FLOOR.

CITY COUNCIL THEN ON TWO FLOORS.

RIGHT NOW WE KNOW THAT YOU ALL ARE CRAMMED IN TIGHT WITHIN THE AREA.

IF WE LOOK AT THE NEXT SLIDE HERE.

EXISTING FLOOR PLAN.

IT'S VERY TIGHT.

IT IS VERY CUMBERSOME.

IN FACT, IF YOU LOOK THROUGHOUT THE BUILDING IT'S NOT A VERY EFFICIENT USE OF SPACE.

SO WE WOULD WANT TO CHANGE THAT.

SO THE IDEA IS TO COME IN WITH THE TOP TWO FLOORS FOR CITY COUNCIL USE.

RIGHT NOW WAY FINDING UP THERE IS VERY DIFFICULT.

I COME UP TO SEE YOU ALL EVERY OTHER DAY.

I STILL DON'T KNOW WHERE YOU'RE AT.

IT'S VERY HARD TO FIND EVERYBODY IN THAT SPACE.

ONE OF THE BIG ISSUES TOO IS YOUR STAFF, YOU'RE IN OFFICES BUT YOUR STAFF IS OUT IN OPEN CUBICLES.

AND THEY'RE DEALING WITH CONFIDENTIAL ISSUES, A LOT OF TIMES.

THAT'S NOT THE BEST ENVIRONMENT FOR THAT.

SO THE PROPOSAL WOULD BE THAT WE SET UP SUITES FOR THE COUNCIL DISTRICTS SO THAT YOU WOULD HAVE AN AREA.

THERE WOULD BE GLASS WALLS TO WHERE YOUR STAFF AND YOU COULD BE IN BEHIND CLOSED DOORS.

IT STILL WOULD LOOK OPEN BUT IT WOULD BE DEFINITELY MORE OF A PRIVATE SETTING.

AGAIN, PLENTY OF CONFERENCE ROOM SPACE.

AND THEN WHAT WE WOULD HAVE IS ROOM FOR GROWTH AS WELL.

SO WE COULD INITIALLY SET IT UP FOR FIVE DISTRICTS PER FLOOR INSTEAD OF ALL TEN DISTRICTS ON ONE FLOOR.

SO YOU CAN IMAGINE THAT'S GOING TO PROVIDE SOME SPACE.

AND THEN WE CAN ALSO, AS THIS CITY CONTINUES TO GROW, I MEAN YOU ALL HAVE 130, 150,000 CONSTITUENTS EACH NOW.

AS IT GROWS IT MAY BE THAT THE CITY SOME DAY ADDS A COUPLE OF DISTRICTS AND REPROPORTIONS THAT.

SO WE WOULD HAVE ROOM FOR AN ADDITIONAL COUPLE OF DISTRICTS IF THAT HAPPENED IN THE FUTURE.

AGAIN, IT'S NOT YET DESIGNED.

THAT WOULD BE THE NEXT STEP, BUT THAT'S THE PROGRAMMING PIECE OF IT.

THE DESIGN-BUILD APPROACH IS A TWO-STEP APPROACH BY LAW.

WE START WITH A REQUEST FOR QUALIFICATION STEP.

OBVIOUSLY BEFORE WE DO THAT WE GO TO THE HIGH-PROFILE

[00:30:02]

COMMITTEE, WHICH WE DID.

ISSUE THE RFQ.

REVIEW THOSE SUBMITTALS.

SHORT LIST THOSE DOWN AND THEN IT GOES TO AN RFP PROCESS.

AND THEN HERE WE ARE WITH YOU ALL FOR ACTION.

SO A COUPLE OF THOSE KEY DATES ARE SHOWN ON HERE.

OF COURSE THE SMALL BUSINESS ECONOMIC DEVELOPMENT ADVOCACY PROGRAM, THE SBEDA GOAL-SETTING COMMITTEE WAS BACK IN OCTOBER.

WE HAD SIX TEAMS SUBMIT, WHICH IS VERY STRONG, FOR THIS PROJECT.

THE COMMITTEE SHORT LISTED DOWN TO TWO FOR THE RFP PROCESS AND INTERVIEWS WERE HELD.

AND THEN THE RECOMMENDATION IS BEFORE YOU TODAY.

AND, AGAIN, THE HIGH-PROFILE COMMITTEE SAW THAT IN THE APPROPRIATE WAY AS WELL.

SO FROM THE SBEDA GOAL SETTING COMMITTEE, THE MANDATORY GOALS, YOU CAN SEE THERE, SMALL BUSINESS PARTICIPATION 40%.

MINORITY AND WOMEN OWNED BUSINESS PARTICIPATION, 30%.

AFRICAN AMERICAN OWNERSHIP AT 5%.

THESE ARE MANDATORY GOALS.

THESE ARE, AS YOU ALL KNOW FROM A FEW YEARS AGO NOW.

THESE ARE NOT GOOD-FAITH EFFORTS.

THEY ARE REQUIRED GOALS TO BE MET.

OF COURSE THESE TEAMS COMMIT TO MEET THESE GOALS.

SO THE RECOMMENDATION TODAY IS TO AWARD A DESIGN-BUILD CONTRACT FOR GUIDO BROTHERS CONSTRUCTION IN THE AMOUNT NOT TO EXCEED $30 MILLION.

YOU MIGHT SAY THE WHOLE PROJECT IS $38 MILLION.

WHAT'S THAT DIFFERENTIAL BETWEEN THAT $8 MILLION IN THERE? SO THERE'S A NUMBER OF THINGS THAT ARE HELD OUTSIDE OF THE DESIGN-BUILD CONTRACT, INCLUDING EVERYTHING TO DO WITH TEMPORARY SPACE AND MOVES.

FURNITURE, AV EQUIPMENT, I.T.

EQUIPMENT, SECURITY EQUIPMENT, THE GEOTECHNICAL WORK, ARCHAEOLOGY, ALL THE TESTING AND BALANCING OF THE SYSTEM, PERMITTING FEES AND PROJECT MANAGEMENT.

THAT TAKES THAT $8 MILLION.

FROM THIS 30 PLUS THE 8 TO GET INTO THE 38.

NOW, COUNCILMAN TREVINO, WE HAVE TALKED ABOUT HOW DOES THIS PROJECT RELATE TO LEAD AND THE SAN ANTONIO GREEN BUILDING STANDARDS.

UPON APPROVAL HERE THEN AS WE MOVE FORWARD WITH THE DESIGN-BUILD TEAM, ALL OF THAT GETS INCORPORATED IN.

THAT'S GOING TO INCLUDE A LOT OF DIFFERENT LOOKS WITH THIS FACILITY.

YOU KNOW, WHEN YOU HAVE A FACILITY LIKE THIS THERE'S THINGS THAT CAN BE SAVED AND REUSED.

THERE'S A LOT OF THINGS THAT NEED TO BE RECYCLED.

WE LOOK AT HOW DO WE RECYCLE AS MUCH AS WE CAN.

ENERGY EFFICIENCY IS A BIG PART OF IT.

RENEWABLE ENERGY OPTIONS.

THE USE OF DAYLIGHT.

WHAT'S THE BEST LAYOUT TO BEST USE THE DAYLIGHT.

AND INTERNAL AIR QUALITY ISSUES AS WELL.

WE HAVE TALKED A LITTLE BIT ABOUT POTENTIALLY SHOWERS IN THIS FACILITY, COUNCILMAN.

WE'RE NOT TALKING ABOUT BIG LOCKER ROOMS OR ANYTHING, BUT A COUPLE OF SHOWERS SO IF PEOPLE CHOOSE OTHER MODES OF TRANSPORTATION TO GET TO WORK FOR THIS FACILITY THEY WILL HAVE AN OPPORTUNITY TO SHOWER.

IF YOU TAKE A RUN IN BETWEEN A SESSION AND LUNCH, WHATEVER, YOU HAVE A CHANCE TO DO THAT.

DOESN'T TAKE A LOT OF SPACE BUT IT MAKES A LOT OF SENSE TO HAVE IT.

OKAY.

SO THE PROJECT SCHEDULE.

YOU KNOW WHERE WE HAVE BEEN WITH THIS WITH B SESSION AND THE HIGH-PROFILE PROCESS.

AND NOW FOR COUNCIL ACTION.

AND THEN WE WOULD START THE DESIGN-BUILD PROCESS.

THE IDEA IS THIS WHOLE THING WE HAVE BEEN SHOOTING FOR THE JULY WINDOW TO MOVE EVERYBODY DURING THE BREAK TIME.

THERE IS NO GOOD TIME FOR A PROJECT LIKE THIS, BUT IF WE'RE GOING TO DO IT WE'RE GOING TO TARGET THAT BREAK TIME.

THAT'S WHY WE HAVE BEEN PROGRESSING THIS PROJECT ALONG.

SO LET'S TALK ABOUT THE TEMPORARY RELOCATION SPACE HERE.

SO THERE'S 152 EMPLOYEES CURRENTLY IN CITY HALL IN THE FIVE DEPARTMENTS.

THE MAYOR'S OFFICE, CITY COUNCIL OFFICES, CITY MANAGER'S OFFICE, CITY ATTORNEYS AND CITY CLERKS.

SO ARTS AND CULTURE RIGHT NOW IS IN PLAZA DE ARMAS.

THOSE 22 EMPLOYEES PREDOMINANTLY WOULD MOVE INTO THE INTERNATIONAL CENTER.

THEY WOULD MOVE INTO THE INTERNATIONAL CENTER FREEING UP THE FLORIDA DE -- PLAZA DE ARMAS FOR THE CITY COUNCIL AND STAFF.

THE CITY COUNCIL AND STAFF, THAT'S 55 PEOPLE WOULD MOVE INTO THE PLAZA DE ARMAS SPACE.

THE MAYOR AND CITY MANAGER AND THEIR STAFF, THAT'S 34 PEOPLE WOULD MOVE INTO THE MODULAR FACILITIES AS WELL AS THE CITY ATTORNEY.

AND THEN THE CITY CLERK AND HER STAFF WOULD MOVE INTO THE MUNICIPAL PLAZA BUILDING IN THE PLAZA ROOM.

[00:35:01]

SO WE WOULD MAKE THAT WORK AS WELL.

SO, AGAIN, MOVING IS NOT EASY.

IT'S NOT FUN.

YOU GUYS ARE ALL BUSY, THAT'S WHY WE'RE TARGETING THE BREAK TO DO IT.

WE WILL MAKE SURE THAT WE ARE HAND HOLDING THROUGH THE PROCESS BETWEEN STAFF AND CONSULTANT SUPPORT TO MAKE SURE YOU'RE SET UP WELL OVER THERE.

I KNOW COUNCILWOMAN VIAGRAN, WE LOOKED A LITTLE BIT TOGETHER AT THE PLAZA DE ARMAS SPACE WITH LORI AND QUESTION ABOUT LIGHTING AND SO FORTH.

ONCE YOU GET INTO YOUR SPACE, IF THERE'S ISSUES WE'LL HELP TO GET THOSE RESOLVED.

PLAZA DE ARMAS, OF COURSE THAT'S A HISTORIC BUILDING WITH A LOT OF EXPOSED LIMESTONE WALLS THAT ARE OVER A CENTURY OLD.

AND SO THERE IS SOME DUST AND FLAKING THAT HAPPENS THERE.

WE HAVE BEEN MONITORING THAT AND WE DID A NEW STRUCTURAL SYSTEM BUT WE KEPT THE HISTORIC WALLS THERE.

THEY ARE NOT LOAD BEARING BUT THEY ARE VISIBLE.

SO WHEN THEY'RE VISIBLE LIMESTONE DOES CREATE DUST AND THINGS.

WE'LL CONTINUE TO MONITOR THAT.

WE THINK IT'S MINOR BUT IT'S SOMETHING THAT WE WILL WANT TO CONTINUE TO MONITOR.

AND LIGHTING WAS ANOTHER ONE THAT WE LOOKED AT OVER THERE.

IF YOU GET IN THERE AND THE LIGHTING IS NOT QUITE RIGHT, WE'LL SEE HOW TO ACCOMMODATE THAT.

AS PART OF THE SAN PEDRO CREEK PROJECT, SARA IS INSTALLING VIBRATION MONITORS CLOSE TO THE PLAZA DE ARMAS BUILDING BECAUSE OF THE NATURE OF THAT BUILDING.

THERE WILL BE CONSTRUCTION GOING ON THERE BUT THEY WILL BE MONITORING THE VIBRATIONS TO MAKE SURE THAT'S KEPT AT A MINIMUM LEVEL TO PROTECT THAT BUILDING, AND ALSO THERE WILL BE NOISE ASSOCIATED WITH THAT BUT TRY TO MITIGATE THAT AS MUCH AS POSSIBLE.

COUNCILWOMAN SANDOVAL, I KNOW YOU MENTIONED HOW ARE PEOPLE GOING TO KNOW THAT WE EVEN MOVED, RIGHT? SO WE'RE PUTTING TOGETHER A ROBUST COMMUNICATION PLAN.

I THINK YOU WANT PEOPLE TO KNOW WHERE YOU'RE AT.

SO WE PUT TOGETHER A COMPREHENSIVE PLAN THAT INCLUDES SOCIAL MEDIA, E BLAST.

WE'LL HAVE AN OPEN HOUSE AS WELL JUST SO THEY CAN SEE YOUR SPACE AND THEY WON'T BE CONFUSED THAT WAY.

IF YOU LOOKED ACROSS THE STREET THERE HAS BEEN SOME WORK THAT STARTED.

TO HIT THAT WINDOW OF JULY FOR THE MOVE, WE DID USE A COUNCIL-APPROVED JOB ORDER CONTRACTOR.

COUNCIL AND A COUPLE OF YEARS AGO APPROVED A WHOLE SLATE OF CONTRACTORS FOR THAT WORK.

AND ADMINISTRATIVELY WE CAN DO A TASK ORDER OF STAFF UP TO $100,000 TO DO WORK.

WE HAVE DAVILA CONSTRUCTION.

THEY ARE THE CONTRACTOR THAT'S WORKING ON THE SAN PEDRO CREEK.

SINCE IT IS RIGHT NEXT TO IT FOR THE MOVE.

SO THEY'RE OUT THERE WORKING, AS WE SPEAK, IN PREPARATION.

OKAY.

JUST A COUPLE OF THINGS TO WRAP IT UP HERE.

THE FINANCING PLANS TO ISSUE THE CFOS THIS SUMMER.

THE CITY HALL RENOVATIONS WERE CONSIDERED BACK WITH THE FROST P3 DEVELOPMENT, AS LORI MENTIONED.

AND SO THAT IS BUILT INTO THE DEBT PLAN.

THAT CAPACITY.

THERE'S BEEN A COUPLE OF SUGGESTIONS THAT MAYBE THIS SHOULD HAVE GONE TO THE VOTERS.

IT'S A $38 MILLION PROJECT.

WE HAVE DONE THAT FOR THE GENERAL OBLIGATION BOND PROGRAM, EVERY FIVE YEARS THOSE BIG BOND PROGRAMS HAVE GONE TO THE VOTERS.

WE HAVE NOT DONE THAT FOR OTHER PROJECTS OUTSIDE OF THE BOND.

YOU KNOW, A FEW YEARS AGO WE FINISHED THE $80 MILLION PUBLIC SAFETY HEADQUARTERS PROJECT, VERY SUCCESSFUL PROJECT.

YOU KNOW, WE'VE GOT A $40 MILLION AND A $35 MILLION SERVICE CENTER, TWO DIFFERENT PROJECTS THAT ARE GOING ON.

QUITE A NUMBER OF FIRE STATIONS THAT WE BUILT WITH CFOS AND SOME ROADWAYS AS WELL.

SO THOSE TYPICALLY HAVE NOT GONE TO THE VOTERS.

AND SO THAT'S WHY THIS ONE HAS NOT GONE TO THE VOTERS AS WELL.

BUT CLEARLY A CITY CORE RESPONSIBILITY IS TAKING CARE OF OUR BUILDINGS.

AND THIS BUILDING IS BEYOND ITS USEFUL LIFE.

SO THAT'S WHY WE'RE APPROACHING IT IN THIS WAY.

OKAY.

FINAL SLIDE HERE.

RECOMMEND APPROVAL OF MULTIPLE ELEMENTS HERE.

THE $38 MILLION APPROPRIATION OF THE ENTIRE PROJECT.

THE $30 MILLION DESIGN-BUILD

[00:40:01]

CONTRACT WITH GUIDO BROTHERS.

AND THEN, YOU KNOW, TO DATE HERE WE'VE SPENT ABOUT $290,000 TO READY THIS PROJECT FOR THIS POINT.

THAT INCLUDES SOME ENVIRONMENTAL DUE DILIGENCE.

INCLUDES THE FACILITY PROGRAMMING OF SPACE, THAT I SHOWED YOU SOME OF THAT INFORMATION.

IT INCLUDES THE JOB ORDER CONTRACTOR THAT'S OUT THERE WORKING.

AND THEN ALSO SOME PROJECT MANAGEMENT FEES AS WELL FOR CITY STAFF TIME.

BUT AS I WRAP IT UP, MAYOR AND COUNCIL, WE FEEL LIKE THIS IS THE RIGHT TIME, THE RIGHT TEAM, AND THE RIGHT PROJECT TO MOVE FORWARD.

AND WE RECOMMEND APPROVAL.

OF COURSE LORI AND BEN GORZELL AND I ARE HERE FOR QUESTIONS.

>> MAYOR NIRENBERG: THANK YOU, MIKE.

WE DO HAVE SOME CITIZENS SIGNED UP TO SPEAK SO WE'LL GO AHEAD AND TAKE THEM NOW.

>> GOOD MORNING.

MY NAME IS WHEREON [INDISCERNIBLE].

ON BEHALF OF GORDON HARTMAN, MY FELLOW TEAM MEMBERS AT MORGAN'S WONDERLAND, ALL OF OUR GUESTS AND ALL OF OUR PARA SPORTS ATHLETES AT MORGAN'S WONDERLAND I WANT TO SAY THANK YOU FOR THE OPPORTUNITY TO SPEAK TO YOU THIS MORNING.

ALTHOUGH GORDON HARTMAN SPENDS MUCH TIME WITH Y'ALL.

THIS IS MY FIRST TIME IN FRONT OF THE COUNCIL.

THANK YOU FOR THE OPPORTUNITY.

WE ARE EXTREMELY BLESSED TO BE ULTRA ACCESSIBLE AND VERY PROUD OF THAT FACT.

AND OUR TEAM, ALTHOUGH WE GET TO TALK TO PEOPLE FROM ALL OVER THE WORLD ABOUT HOW TO HELP THEIR PARTICULAR CIRCUMSTANCE AND BE MORE ACCESSIBLE, THIS PROJECT IS EXTREMELY IMPORTANT TO ALL OF US BECAUSE IT'S AT HOME.

IT'S OUR CITY HALL.

IT AFFECTS OUR FAMILIES, OUR FRIENDS, OUR NEIGHBORS, EVERYBODY.

AND I GET TO SEE, ALONG WITH OUR TEAM, THE IMPACT THAT ULTRA ACCESSIBILITY GETS TO PLAY AND THE OUTCOMES.

ALBEIT THROUGH PLAY, BUT I THINK IN MY HUMBLE OPINION WHEN YOU OFFER A WELCOMING ACCESS TO BUILDINGS, TO YOU AND THE WORKINGS OF CITY GOVERNMENT, I THINK THAT THE OUTCOME WILL BE PHENOMENAL.

IT SAYS TO THE PEOPLE THAT ARE MAYBE IN WHEELCHAIRS OR WALKERS OR HOWEVER THEY GET AROUND, YOU MATTER AND YOUR OPINION MATTERS.

AND THE OPPORTUNITY TO GET THROUGH THOSE FRONT DOORS, NOT THROUGH THE SIDE DOOR, IS THAT YOU'RE IMPORTANT.

AND ALL I CAN TELL YOU IS IN THE LAST SIX AND A HALF YEARS I HAVE BEEN WITH GORDON AND MORGAN'S WONDERLAND THE EXPRESSION OF GRATITUDE, THE CHANGE IN INDIVIDUALS THAT I HAVE BEEN BLESSED TO KNOW IS AMAZING WHEN IT COMES DOWN TO THE OPPORTUNITY TO LISTEN TO WHAT THEY HAVE TO SAY.

AND MOVE FORWARD.

I HOPE, AND MANY OF Y'ALL HAVE BEEN VERY GRACIOUS TO THE SPECIAL NEEDS COMMUNITY.

MR. HARTMAN WANTED ME TO MAKE SURE THAT I SAID THAT TO Y'ALL.

HE IS EXTREMELY PASSIONATE, WE ALL KNOW THAT, ABOUT THE SPECIAL NEEDS COMMUNITY.

AND THIS WILL MAKE A DIFFERENCE.

IT WILL MAKE A HUGE DIFFERENCE.

I AM NOT A NATIVE SAN ANTONIAN.

MY WIFE AND I GOT HERE AS SOON AS WE COULD BUT WHEN WE LISTEN TO ALL OF THE IMPACTFUL HISTORICAL THINGS FROM THE TRICENTENNIAL THAT WE HAVE BEEN READING ABOUT AND HEARING ABOUT, THIS IS THE YEAR THAT THIS SHOULD HAPPEN BECAUSE THIS IS HISTORICAL AND THIS WILL BE SO IMPACTFUL FOR YEARS AND YEARS TO COME.

THANK YOU VERY MUCH FOR YOUR TIME.

>> MAYOR NIRENBERG: THANK YOU.

TORI CARLTON.

>> THANK YOU.

I'M GOING TO DEFER MY TIME TO CHAPTER PRESIDENT JASON PUSHO.

>> MAYOR NIRENBERG: JASON, WE'LL TAKE YOU NOW.

YOU HAVE SIX MINUTES.

>> GOOD MORNING.

MY NAME IS JASON PUSHO, I AM THE PRESIDENT OF THE AMERICAN INSTITUTE OF ARCHITECTS OF SAN ANTONIO.

OUR CHAPTER IS HERE TO SPEAK IN FAVOR OF THE CITY OF SAN ANTONIO INVESTING $38 MILLG ION IN THE RENOVATION OF OUR HISTORIC CITY HALL .

SAN ANTONIO CITY HALL IS ONE OF THE UNITED STATES' OLDEST PUBLIC BUILDINGS.

PROMINENTLY LOCATED IN THE HEART OF DOWNTOWN, CITY HALL IS A TANGIBLE SYMBOL OF DEMOCRACY AND

[00:45:01]

A TESTAMENT OF THE VALUE OF BUILDINGS AS LONG-TERM COMMUNITY ASSETS.

THE PRESENT 52,000 SQUARE FOOT BUILDING HAS SERVED AS CITY HALL SINCE 1899.

OVER 125 YEARS.

FOR FAR TOO LONG CITY HALL HAS BEEN PATCHED AND PIECED TOGETHER.

NORMAL WEAR AND TEAR COMPOUNDED BY CHANGING TECHNOLOGY DEMANDS THAT THIS BUILDING NEEDS BE ADDRESSED.

AFTER 125 YEARS OF USE IT IS NOT SURPRISING THAT CITY HALL IS EXPERIENCING SIGNIFICANT PROBLEMS WITH AGING MECHANICAL, ELECTRICAL, PLUMBING, AND SEWER SYSTEMS. WE MUST COMMIT AS A COMMUNITY TO MAKING THE RECOMMENDED REPAIRS AND REQUIRED UPGRADES TO ENSURE THE SAFETY OF ALL WHO WORK AND VISIT OUR SEAT OF GOVERNMENT.

A MODERNIZED CITY HALL WILL ALSO ENSURE THAT OUR CITY GOVERNMENT IS OPERATED EFFICIENCY AND EFFECTIVELY.

THIS CAPITAL IMPROVEMENT PROJECT IS A LONG-TERM INVESTMENT IN OUR CITY AND ITS PUBLIC IMAGE.

AS CITY LEADERS YOU ARE CHARGED WITH PROTECTING PUBLIC ASSETS.

WE CANNOT CONTINUE TO NEGLECT THIS IMPORTANT BUILDING.

IT IS IMPERATIVE THAT WE INVEST THE NECESSARY RESOURCES TO ENSURE THAT IT MEETS THE NEEDS OF THE PEOPLE IT SERVES.

AT OUR CORE, ARCHITECTS STAND FOR EQUITY AND HUMAN RIGHTS.

AMERICAN BUSINESSMAN THOMAS WATSON SAID THAT GOOD DESIGN IS GOOD BUSINESS.

ARCHITECTS ARE IN THE BUSINESS OF GOOD DESIGN.

WE BELIEVE THAT ACCESS TO GOOD DESIGN IS A FUNDAMENTAL RIGHT THAT SHOULD BE AFFORDED TO ALL.

AT ITS ROOT, GOOD DESIGN HELPS PEOPLE.

IT PROMOTES THE VALUES OUR SOCIETY STRIVES FOR.

IT IS ASPIRATIONAL.

IT HELPS MAKE EACH LIFE A LITTLE BIT BETTER.

IN THIS CASE IT IS ALSO THE THOUGHTFUL RENOVATION OF A HISTORIC STRUCTURE THAT SYMBOLIZES OUR DEMOCRATIC PROCESS.

UNIVERSAL RESPECT FOR HUMAN DIGNITY AND THE UNBIASED TREATMENT OF ALL PERSONS IS A COMMITMENT OF OUR PROFESSION.

ACCESSIBILITY TO THE BUILT ENVIRONMENT FOR ALL IS IMPERATIVE.

CITY HALL MUST HAVE AN ACCESSIBLE FRONT DOOR FOR ALL PERSONS.

I CAN THINK OF NO MORE FITTING A TRICENTENNIAL GIFT TO SAN ANTONIO THAN A RENOVATED HISTORIC CITY HALL.

THANK YOU VERY MUCH FOR YOUR TIME.

>> MAYOR NIRENBERG: THANK YOU.

SU ANN PEMBERTON.

IS SUE ANN HERE? OKAY.

PATTY SAENZ.

>> GOOD MORNING, MAYOR, COUNCIL MEMBERS.

MY NAME IS PATTY SAENZ.

I AM THE FIRST VICE PRESIDENT OF THE SAN ANTONIO CONSERVATION SOCIETY SPEAKING ON BEHALF OF OUR PRESIDENT, SUSAN BEVIN.

AND YOU HAVE OUR STATEMENT BEFORE YOU, I BELIEVE.

THE SAN ANTONIO CONSERVATION SOCIETY SUPPORTS THE PROPOSED REHABILITATION OF CITY HALL, WHICH WILL INCLUDE ACCESSIBILITY.

PRESERVATION IS ABOUT KEEPING BUILDINGS IN PRODUCTIVE USE.

THIS PROJECT WILL MAKE CITY HALL USEFUL FOR THE CITY AND ALL OF ITS CITIZENS FOR GENERATIONS TO COME.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, MS. SAENZ.

COUNCILMAN TREVINO.

>> TREVINO: THANK YOU, MAYOR.

I PULLED THIS ITEM TO FOCUS ON PRESERVING OUR HISTORIC PLACES, ESPECIALLY AS THIS PLACE SERVES AS THE SEAT OF OUR LOCAL GOVERNMENT.

I WANT TO THANK ALL THE FOLKS THAT CAME OUT TODAY.

THANK YOU, PATTY.

THANK YOU, TORI, JASON, ROB FOR COMING AND SPEAKING TODAY.

I ALSO WANT TO THANK GORDON HARTMAN FOR HIS INCREDIBLE GENEROSITY TO HELP PUSH FOR A MORE THOUGHTFUL RENOVATION OF CITY HALL.

MIKE, IF WE COULD TALK ABOUT A FEW THINGS.

LET'S TALK ABOUT THE DEFERRED MAINTENANCE OF THIS BUILDING.

IN YOUR OPINION, THIS IS SOMETHING THAT'S BEEN LONG OVERDUE, AS YOU DEMONSTRATED IN SOME OF THOSE SLIDES.

IN FACT, I THINK ONE OF THE PICTURES WAS MANNY PELAEZ'S OFFICE WITH A BUCKET AND THE LADDER.

I'M KIDDING.

[LAUGHTER]

>> TREVINO: THIS IS SOMETHING THAT WE'RE SEEING.

THERE'S LEAKS IN THE BUILDING, THERE'S MECHANICAL SYSTEMS THAT ARE TRULY FAILING.

TELL US SOMETHING ABOUT HOW GETTING IN THERE WITH A MORE COMPREHENSIVE CONSTRUCTION APPROACH IS GOING TO HELP US TRULY, TRULY SAVE THIS BUILDING.

>> SURE, COUNCILMAN.

YOU KNOW, IF WE HAVE A BUILDING THAT'S 20, 30, 40 YEARS OLD, YOU KNOW, THERE ARE SYSTEM COMPONENTS, YOU CAN GO INTO A

[00:50:01]

BUILDING LIKE THAT, REPLACE A SYSTEM AND KEEP THAT GOING.

BUT WHEN YOU GET A BUILDING THAT'S, YOU KNOW, THE EARLIEST PHASE IS 90 YEARS OLD AND A LOT OF IT IS OVER 125 YEARS OLD, IT'S COME TO A POINT WHERE YOU CAN'T DO THAT.

BECAUSE EVERYTHING IS DETERIORATING FROM THE ENTIRE BUILDING ENVELOPE TO ALL THE UTILITIES THAT FEED IT IN THE SYSTEMS. AND THEN THE INTERIOR.

SO THERE'S BEEN ENOUGH WATER INFILTRATION THROUGHOUT.

SO THE BEST WAY TO DO THAT THEN IS THAT DESIGN-BUILD TEAM.

THIS IS A VERY SOPHISTICATED TEAM OF GUIDO AND FORD PAL CARSON.

THEY HAVE DONE A LOT OF HISTORIC WORK, INCLUDING THE PLAZA DE ARMAS, SO THEY ARE EXPERTS IN THIS AREA.

THAT TEAM WITH OUR SUBCONSULTANTS AND CONTRACTORS ARE SUITED TO WORK WITH US THAN TO DO IT ONE TIME, DO IT RIGHT, AND THEN IT'S GOING TO BE A TREMENDOUS FACILITY FOR A LONG TIME AFTER.

>> TREVINO: ALSO WE HAVE SEEN THAT THERE'S ACTUALLY SOME PIECES OF THE BUILDING OCCASIONALLY FALLING AND COMING APART.

ARE WE ADDRESSING THOSE ISSUES AS WELL?

>> YES.

ALL OF THOSE ISSUES WILL BE ADDRESSED.

WE WILL WORK CLOSELY WITH THE TEXAS HISTORIC COMMISSION.

I DIDN'T MENTION BEFORE THAT THERE'S A COUPLE OF STEPS WITH HDRC, OF COURSE, AS WELL THROUGH THIS PROCESS TO MAKE SURE WE GET THE SEAL OF APPROVAL FROM THE HDRC.

YES, THE TEXAS HISTORIC COMMISSION WILL BE WORKING CLOSELY.

IN FACT, IF IT IS APPROVED TODAY AS WE MOVE FORWARD, IN THE AUGUST TIME-FRAME, THEN WE WOULD START AN ASBESTOS ABATEMENT PIECE.

THAT'S A LOT OF THAT WHY CAN'T PEOPLE BE IN THERE WHEN THIS IS GOING ON? THAT'S A LOT OF DEMOLITION.

THE FIRST PART IS SMALL BECAUSE IT'S ASBESTOS ABATEMENT.

BUT WE GET APPROVAL FOR THE DEMOLITION PACKAGE FROM THE TEXAS HISTORICAL COMMISSION AND THAT WILL TAKE PLACE IN THE FALL TIME-FRAME.

IT WILL BE A BIGGER EFFORT.

>> TREVINO: DO YOU SEE THIS, AS WE'RE GETTING IN THERE, THERE'S A LOT OF THINGS WE ARE STILL GOING TO UNCOVER AND MAYBE DISCOVER ABOUT THE BUILDING, IS THAT CORRECT?

>> YES.

>> TREVINO: AND SO I THINK IT'S IMPORTANT TO POINT OUT, BECAUSE OF ITS HISTORY AND THE DIFFERENT ITERATIONS THAT IT'S HAD, WE ARE STILL IN THE PROCESS OF UNDERSTANDING WHAT THE SCOPE OF THIS REALLY MEANS.

IS THAT CORRECT?

>> THAT'S RIGHT.

IT WILL EVOLVE.

SO AS THEY GO IN WITH THE PROPER APPROVALS TO DO DEMOLITION WORK, YOU KNOW, WE'RE GOING TO BE GETTING INTO WALLS THAT WERE BUILT IN THE LATE 1800S.

WE'RE GOING TO BE VERY CAREFUL ABOUT THAT.

AND SO THAT COULD -- WE KNOW THE GENERAL SCOPE OF THIS PROJECT BUT SOME OF THOSE DETAILS WILL BECOME APPARENT THROUGH THAT DESIGN AND CONSTRUCTION PROCESS.

>> TREVINO: I GUESS IT'S MY HOPE THAT WE SEE THIS AS AN OPPORTUNITY TO SEE HOW WE CAN EXPRESS THAT.

I THINK THIS IS WHERE WE UTILIZE OUR ROBUST OFFICE OF HISTORIC PRESERVATION, THE CONSERVATION SOCIETY, AND MANY OTHER FOLKS WHO ARE INTERESTED IN PRESERVING OUR HISTORIC BUILDINGS.

BUT ALSO JUST IN TELLING THE STORY OF THIS BUILDING AND ITS DIFFERENT ITERATIONS.

MY HOPE IS AS WE'RE GOING THROUGH THIS WE TAKE SOME TIME TO FIND A WAY TO MAYBE EXPRESS SOME OF THESE FEATURES OF THE BUILDING.

IS THAT GOING TO BE A POSSIBILITY?

>> YEAH.

NO DOUBT ABOUT IT.

ANY TIME YOU'RE DOING A RENOVATION PROJECT LIKE THIS WITH A HISTORIC BUILDING, YOU WANT TO REUSE DIFFERENT MATERIALS OR DIFFERENT REPLICAS AND INTRODUCE THAT INTO THE DESIGN.

WE WILL DEFINITELY BE LOOKING FOR THOSE OPPORTUNITIES.

>> TREVINO: AND SO YOU TALKED ABOUT LAYOUT EARLIER ON THE FOURTH FLOOR.

RIGHT NOW THE WAY IT'S SET UP IS IT'S KIND OF BASED ON SENIORITY AND NOT EVERY OFFICE IS EQUAL.

IT'S SEEN MANY VARIATIONS.

WHAT YOU'RE TALKING ABOUT IS PROVIDING A BALANCE FOR ALL THE OFFICES TO HAVE A GOOD AMOUNT OF SPACE, WORKING SPACE.

BUT WITHIN THAT I HOPE, AS I MENTIONED, THAT WE TAKE A LOOK AT WAYS TO TRULY ALLOW THE BUILDING TO BREATHE OR TO BE, YOU KNOW, AS EXPRESSED AS POSSIBLE.

WE WENT FROM THREE FLOORS TO FOUR FLOORS.

THERE WAS A CENTRAL CUPOLA, I GUESS.

SO I IMAGINE THAT THERE MIGHT BE SOME FEATURES OF THAT BUILDING THAT I THINK WE COULD POTENTIALLY INCORPORATE IN THIS DESIGN AND LAYOUT.

IS THAT CORRECT?

>> YES.

THAT'S CORRECT, COUNCILMAN.

>> TREVINO: AND WITH THAT, AS I MENTIONED WORKING WITH OHP AND OTHER FOLKS, I ALSO THINK IT'S

[00:55:01]

IMPORTANT TO POINT OUT SOME OF THE NEW GREEN BUILDING PRACTICES AS WELL.

AND SO I WOULD HOPE THAT WE WOULD ALSO WORK WITH BUILD SAN ANTONIO GREEN TO HELP SET SOME EXAMPLES MOVING FORWARD ON HOW TO DO THIS RIGHT AND HOW HISTORIC BUILDINGS CAN BE SOME OF THE GREENEST BUILDINGS AROUND AND SET SOME GOOD EXAMPLES.

IF IT'S ONE PLACE WE CAN SET A GOOD EXAMPLE IS RIGHT HERE AT CITY HALL.

I WOULD LIKE TO ASK THAT YOU INCLUDE BUILD SAN ANTONIO GREEN AS A POTENTIAL PARTNER AT LEAST IN UNDERSTANDING HOW THESE SYSTEMS CAN BE INCORPORATED AND REHABILITATED IN SUCH A WAY THAT THEY FOLLOW SOME OF THE NEW GREEN BUILDING STANDARDS.

>> YES, SIR.

WE'LL DO THAT.

>> TREVINO: OKAY.

AND SO, WITH THAT I THINK IT'S ALSO IMPORTANT TO POINT OUT THAT YOU'RE GOING TO BE DOING A LOT TO CREATE SOME ENERGY EFFICIENCIES ALL OVER THE BUILDING WITH NEW MECHANICAL SYSTEMS AND SO FORTH.

CAN YOU TELL US A LITTLE BIT ABOUT THAT?

>> THE EFFICIENCIES THAT WE'LL BE LOOKING AT? YEAH, ONE OF THEM IS THE SPACE ITSELF.

IT'S JUST MAKING SURE, AND THAT'S BEEN PART OF THIS PROGRAMMING STEP IS, YOU KNOW, UNDERSTANDING HOW YOU ALL OPERATE AND EVERYBODY THAT'S GOING TO BE IN THERE.

WHAT'S THE MOST EFFICIENT WAY FOR THAT SPACE TO BE LAID OUT AND FOR THE PUBLIC TO INTERACT.

AN EXAMPLE RIGHT NOW THE SECURITY DESK IS RIGHT IN THE HALLWAY OF THE MAIN FLOOR.

WELL, THAT'S SOMEWHAT -- I MEAN, IT'S A CRITICAL FUNCTION BUT IT DOESN'T NEED TO BLOCK THE MAIN HALLWAY.

SO SETTING THAT AS YOU COME THROUGH THE FRONT DOORS THEN YOU'LL HAVE SECURITY IN A PROPER WAY BUT IT WILL BE OFFSET SLIGHTLY FROM THE HALLWAY, SO THAT'S NOT THE FIRST ELEMENT.

SO THINGS LIKE THAT.

AND SPACE, EFFICIENT SPACE FOR PEOPLE TO WAIT FOR MEETINGS IN A GOOD SETTINGS.

AND THEN PLENTY OF SPACE FOR THOSE MEETINGS TO OCCUR.

AND EFFICIENCIES OF SYSTEMS, USING ALL OF THOSE GREEN BUILDING STANDARDS TO BRING IN THE LATEST OF EFFICIENT SYSTEMS AND SO FORTH.

SO THAT'S ONE OF THE BENEFITS OF HAVING -- YOU KNOW, WE HAVE SOME EXPERTISE WITHIN THE CITY BETWEEN TCI AND OFFICE OF SUSTAINABILITY AND OTHERS.

BUT WHEN YOU COMBINE THAT WITH PRIVATE SECTOR AND SOME OF THESE NONPROFIT ORGANIZATIONS IN SAN ANTONIO, YOU'RE BRINGING THE FULL COMPLEMENT OF EXPERTISE, BEST PRACTICES INTO A PROJECT LIKE THIS.

>> TREVINO: AND WE HEARD MR. MORANDER TALK ABOUT THE ULTRA ACCESSIBILITY THAT MORGAN'S WONDERLAND PROMOTES.

IT'S EXCITING TO SEE THE CITY HALL FOR ALL RENOVATION OF THE FRONT DOORS OF CITY HALL.

I THINK THIS ADDS ANOTHER GREAT LAYER TO THE ACCESSIBILITY, AS YOU POINTED OUT, BRINGING PEOPLE TO CITY HALL TO UNDERSTAND THAT THIS IS THEIR CITY HALL.

THIS IS THEIR CITY RESOURCE AND WE WANT TO HELP TO OPEN THE FRONT DOORS TO EVERYONE AS MUCH AS POSSIBLE.

I ALSO WANT TO EXPRESS THAT I THINK THESE OPPORTUNITIES FOR THIS BUILDING TO SET AN EXAMPLE FOR WAYS TO BETTER CONNECT THE CITY TO CITY HALL IS PROBABLY THE GREATEST OPPORTUNITY WE HAVE WITH THIS RENOVATION IS TO SHOW HOW WE HAVE MANY, MANY ITEMS THAT WE'RE CURRENTLY PLANNING, LIKE OUR COMPREHENSIVE PLAN MOVING FORWARD AND HOW CITY HALL CAN BE BETTER CONNECTED TO A TRANSIT PLAN.

TO HOW CITY HALL CAN HAVE ALL AVAILABLE RESOURCES AND SET AN EXAMPLE FOR WHAT'S OUT THERE, WHAT'S AVAILABLE TO EVERYONE.

AND SO I REALLY THINK THAT THIS IS THE TIME, AS YOU SAID.

BUT BEFORE I WRAP UP MY COMMENTS, I WOULD LIKE TO INVITS GOING TO DO THIS.

BUT TOMMY GUIDO, JUST BECAUSE KNOWING YOU, I WOULD LIKE FOR YOU TO COME UP HERE AND JUST TALK A LITTLE BIT ABOUT WHAT THIS PROJECT MEANS AND IN TERMS OF YOUR CONSTRUCTION COMPANY AND THE LEGACY OF RESTORING, YOU KNOW, SOME OF THE MOST HISTORIC STRUCTURES IN THE CITY AND JUST WHAT YOU THINK ABOUT WHAT THIS MEANS IN TERMS OF AN OPPORTUNITY FOR US ALL.

>> THANK YOU, ROBERT.

I WASN'T EXPECTED TO SPEAK THIS MORNING SO IT'S GOING TO BE OFF THE TOP OF MY HEAD.

BUT BASICALLY I WANT TO TELL YOU WHAT A GREAT HONOR IT IS FOR OUR COMPANY TO BE ABLE TO PERFORM ANOTHER FUNCTION FOR THE CITY OF SAN ANTONIO.

WE HAVE BEEN OVER OUR HISTORY OF OVER 91 YEARS -- NOT QUITE 125.

AND WE HAVE ACTUALLY WORKED ON THE CITY HALL PROJECT IN '94 WHEN WE RESTORED THE OUTSIDE.

BUT THE REAL BEAUTY OF IT IS WHEN WE TALK ABOUT WHAT'S GREAT ABOUT SAN ANTONIO, IT'S OUR BUILDINGS AND IT'S OUR PEOPLE.

[01:00:03]

AND WE JUST FEEL VERY HONORED TO BE ABLE TO PUT A TEAM TOGETHER THAT REALLY IS GOING TO BE ABLE TO FULFILL THE DESIGN REQUIREMENTS AND FACILITIES THAT WE ALL NEED AS A CITY TO GROW.

SO, THANK YOU.

>> TREVINO: THANK YOU, TOMMY.

WE LOOK FORWARD TO IT.

LASTLY, I WOULD JUST ADD THAT THE APPROVAL OF THIS ITEM WILL ILLUSTRATE HOW WE HAVE PROGRESSED AS A CITY AND HOW WE UNDERSTAND THAT INVESTMENTS IN OUR HERITAGE TO PRESERVE OUR PAST AND MAKE OUR GOVERNMENT ACCESSIBLE TO EVERYONE WHO COMES TO OUR FRONT DOORS IS THE RESPONSIBLE DECISION.

IT IS WITH THE APPLICATION OF COMMON SENSE I MOVE TO APPROVE THIS ITEM.

>> MAYOR NIRENBERG: OKAY.

THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NO. 11.

COUNCILMAN PELAEZ.

>> PELAEZ: THANK YOU, MAYOR.

I HAVE BEEN TAKING NOTES AND PAYING CLOSE ATTENTION TO THIS.

AND I'M REMINDED OF THE DEBATE THAT WE USED TO HAVE WHEN I WAS CHAIRING BROOKS CITY BASE REGARDING SOME OF THOSE HISTORIC BUILDINGS OUT THERE.

AND HANGAR NINE.

I DON'T KNOW IF Y'ALL REMEMBER HANGAR NINE WAS ONE OF THE OLDEST WOODEN HANGARS IN EXISTENCE AND IT TOO WAS ON THE NATIONAL REGISTER OF HISTORIC PLACES.

AND WHEN I FIRST STARTED SERVING ON THAT BOARD, GOSH, HANGAR NINE WAS MORE OF AN ANNOYANCE TO ME UNTIL I STARTED LEARNING MORE AND MORE AND HANGING OUT WITH OUR CONSERVATION FRIENDS AND REALLY TALKING TO COMMUNITY MEMBERS.

AND WHAT I LEARNED WAS THAT OLD BUILDINGS AREN'T JUST OLD BUILDINGS, RIGHT? THE WORD HISTORIC REALLY MEANS AN OLD BUILDING THAT'S WORTH THE EFFORT OF KEEPING AROUND FOR A LONG, LONG TIME.

AND SO I STARTED LEARNING MORE AND MORE THAT, YOU KNOW, OLD BUILDINGS WORTH THE EFFORT ARE WORTH THE EFFORT BECAUSE THEY PRESERVE OUR PAST AND THEY HELP ENHANCE OUR FUTURE.

AND SO I'M EXCITED ABOUT THE PLANS.

I WILL TELL YOU, MR. FRISBIE, THAT JOHN COURAGE AND I RESENT THAT YOU LOOKED RIGHT AT US WHEN YOU SUGGESTED THAT WE TAKE A BRISK RUN BETWEEN COUNCIL MEETINGS AND TAKE A SHOWER AFTERWARDS.

I DON'T KNOW WHY YOU LOOKED AT JUST US.

YOU KNOW, I STARTED LEARNING MORE AND MORE ABOUT THIS NATIONAL REGISTER THAT YOU MENTIONED.

THAT'S NOT UNIMPORTANT.

THE NATIONAL REGISTER IS -- COUNCILWOMAN VIAGRAN, YOU ARE OUR EXPERT ON UNESCO WORLD TREASURES.

I THINK IT'S FAIR TO SAY THAT THE NATIONAL REGISTER IS THE UNITED STATES' VERSION OF U.S.

NATIONAL TREASURES.

AND THEY ARE NATIONAL TREASURES BECAUSE THEY ARE HERITAGE ASSETS.

CAN WE LOOK AT SLIDE 14, PLEASE? THAT'S SLIDE 27.

THERE IT IS.

SO IF I WERE TO SEE A SLIDE LIKE THAT ABOUT THE BOB ROSS SENIOR CENTER IN DISTRICT 8 AND I SAID, WOW, THERE'S FIVE PRETTY BAD THINGS HAPPENING THERE.

THE WHEELS ARE FALLING OFF THAT.

THE FLOODING, SEWER BACK UPS, AGING, DETERIORATION, AND HVAC ISSUES.

WHICH, BY THE WAY, WE HAD.

AND, SHERYL, YOU HELPED US OUT WITH THAT.

YEAH, I WOULD SAY THAT'S A BUSINESS DECISION THAT NEEDS TO BE MADE TO PRESERVE WHAT IS GOOD ABOUT THAT BUILDING AND BRING IT BACK UP TO SPECS TO MAKE SURE IT DOES WHAT IT IS SUPPOSED TO DO.

I WOULD HAVE THIS SAME CONVERSATION WITH Y'ALL IF IT WAS A LIBRARY WE WERE TALKING ABOUT.

WE HAVE HAD THAT CONVERSATION WHEN IT WAS ABOUT RED BERRY MANSION.

I HOPE WE CAN HAVE THAT CONVERSATION ABOUT DEDMOND -- THE HOUSE AT DEDMOND ESTATES.

WE ARE HAVING THE CONVERSATION ABOUT THE ALAMO ABOUT PRESERVING IT AND MAKING SURE IT'S AROUND FOREVER.

WE HAVE HAD THAT CONVERSATION ABOUT THE ALAMEDA.

AND THE REASON IS THESE ARE BUILDINGS WORTH FIGHTING FOR AND THAT THE INVESTMENT IS WORTH IT.

SO WITH THAT I'LL TELL YOU I DO HAVE QUESTIONS.

IT'S NOT JUST ME TALKING OUT LOUD.

I DON'T KNOW IF LORI OR MAKE, LORI, MAYBE YOU KNOW.

BEING ON THE NATIONAL REGISTER I

[01:05:02]

UNDERSTAND COMES WITH ELIGIBILITY TO APPLY FOR AND MAYBE GET GRANTS UNDER THE SAVE AMERICA TREASURES PROGRAM OR THE PRESERVE AMERICA PROGRAM.

IS THAT SOMETHING YOU HAVE BAKED INTO THIS AS FAR AS THE STRATEGY GOING FORWARD TO MAYBE GET SOME FUNDS FROM THE FEDERAL GOVERNMENT?

>> WE KNOW THAT WE ARE NOT ELIGIBLE FOR SEVERAL GRANTS AND INCENTIVES BECAUSE WE ARE A PUBLIC ENTITY BUT WE CAN PURSUE THOSE OPPORTUNITIES.

WE DID LOOK AT HISTORIC TACK CREDITS AND OTHER OPPORTUNITIES.

BUT BECAUSE OF THE FACT THAT WE ARE A CITY ENTITY , WE AREN'T ELIGIBLE.

BUT WE WILL STILL BE WORKING WITH OHP AND PURSUE OTHER OPPORTUNITIES AS THEY BECOME AVAILABLE.

>> PELAEZ: LORI, YOU'RE THE ONLY STAFFER WHO SAID I KNOW YOUR SECRET.

YOU SOUND SO SMART BECAUSE YOU GOOGLE BEFORE YOU ASK THE QUESTIONS.

I WAS GOOGLING AT SOME POINT.

AND I FOUND OUT THAT SOME OF THESE GRANTS WHEN UNDER THE ELIGIBILITY CRITERIA IT DOES SAY LOCAL GOVERNMENTS.

ALL I'M ASKING IS CAN YOU TAKE A SECOND LOOK? AND IF YOU WANT, I'LL BE HAPPY TO SHARE WITH YOU THE LINKS I'M LOOKING AT.

I MENTIONED THOSE SPECIFIC PROGRAMS BECAUSE THEY DO SAY LOCAL GOVERNMENT.

LORI, CHANGING THE SUBJECT TO THE FROST TOWER RENOVATION AND ART MOVING IN, I WANT TO MAKE SURE THAT THE CONVERSATION IS LESS ABOUT MAKING SURE OUR EMPLOYEES ARE COMFORTABLE AND THAT THEY ENJOY THE BUILDING.

AND THAT'S AN IMPORTANT THING TO TAKE INTO ACCOUNT.

AND I APPRECIATE YOU HAVING DONE THAT SURVEY.

BUT IT IS ALSO A CITY BUILDING THAT NEEDS TO BE WELCOMING TO THE PUBLIC.

AND SO WITH THE SAME ATTENTION WE'RE PAYING TO MAKING SURE OUR EMPLOYEES ARE MAXIMIZING THE EXPERIENCE IN THAT BUILDING, I DO WANT TO MAKE SURE THAT THE PUBLIC SPACES DOWNSTAIRS ARE WELCOMING AND THAT THEY ARE BEING USED TO THE MAXIMUM POTENTIAL BY, YOU KNOW, BOY SCOUT TROOPS WHO WANT TO VISIT US AS THE ROBOTICS TEAMS WHO WANT TO VISIT WITH MIKE FRISBIE.

YOU KNOW, AND WHENEVER THEY VISIT WITH YOU I WANT TO MAKE SURE THAT IT'S THEIR HOUSE.

THIS CITY HALL ACROSS THE STREET IS NOT THE ONLY PEOPLE'S HOUSE.

AND SO, THAT'S IT.

IT'S LESS OF A QUESTION BUT I KNOW YOU AND I HAVE ALREADY TALKED ABOUT THAT BUT I WANT TO MAKE SURE THAT THAT'S SORT OF ON THE RECORD THAT WE NOT FORGET THAT IMPORTANT POINT.

>> THAT'S FIRST AND FOREMOST WHAT WE'RE DOING.

WE WANT TO MAKE SURE WE ARE MAKING THESE BUILDINGS COMPLETELY ACCESSIBLE TO THE PUBLIC.

CITY HALL WILL HAVE THE ADA ACCESS IN THE FRONT AND BACK AND THE FROST TOWER, LOOKING AT PROGRAMMING IT.

THOSE PUBLIC-FACING DEPARTMENTS ARE IN A MORE CONVENIENT LOCATION FOR THE PUBLIC AND IT'S A MORE WELCOMING BUILDING.

TO MAKE SURE THE PUBLIC CAN GO TO THE RETAIL AND USE THE RETAIL IN THAT BUILDING.

THAT IS DEFINITELY ONE OF THE MOST IMPORTANT PRIORITIES IN BOTH OF THESE PROJECTS.

>> PELAEZ: AND THEN THERE'S CHARACTER TO THAT BUILDING ALREADY, RIGHT. THERE'S A VERY SMART PERSON WHO REMINDED ME RECENTLY THAT IT'S A -- THERE'S COOL STUFF HAPPENING THERE BECAUSE IT'S SORT OF A LATE '60S OIL BARON SORT OF FLAVOR TO IT.

THAT'S NOT -- I WOULD BE SAD IF WE TOSSED THAT ASIDE FOR SOMETHING SWANKY AND FANCY AND NEW.

THESE AREN'T THE GOOGLE HEADQUARTERS.

THIS IS SAN ANTONIO.

AND SO THIS SHOULDN'T JUST BE A CONVERSATION ABOUT US PRESERVING THE HISTORY OF CITY HALL BUT ALSO PRESERVING, YOU KNOW, WHAT WE'VE GOT IN THAT BEAUTIFUL BUILDING TOO.

>> YES.

>> PELAEZ: THANK YOU, LORI.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PELAEZ.

COUNCILWOMAN VIAGRAN.

>> VIAGRAN: THANK YOU, MAYOR.

SO, MIKE.

YEAH, THANKS FOR SHOWING THE PHOTO OF MY OFFICE WITH THE CRACKED WALLS.

APPRECIATE IT.

BUT IT IS SOMETHING WE HAVE BEEN GOING THROUGH.

NOT ONLY THE COUNCIL MEMBERS BUT ALSO THE STAFF AND EVEN THE RESIDENTS WHO ARE COMING AND VISITING US HERE.

I DO HAVE A QUESTION ABOUT THE DESIGN COMPETITION THAT WOULD HELD.

SO THE DESIGN COMPETITION.

DID IT HAVE A BUDGET WITH IT? MEANING WHEN THEY WERE DESIGNING DID IT HAVE A BUDGET THAT WAS PART OF ENTRIES?

>> I WOULD LIKE TO DEFER TO COUNCILMAN TREVINO, BECAUSE THIS IS ACTUALLY SEPARATE FROM THE CITY ACTIVITY.

THIS WAS A SEPARATE CONTEST.

>> VIAGRAN: COUNCILMAN.

>> TREVINO: YES.

THAT'S PART OF THE CONSIDERATION.

WE HAVE THE AIA HERE AND PART OF THAT WAS A DESIGN COMPETITION HELD SIMILARLY TO THE BARGE CONTRACT.

>> VIAGRAN: SO, TORI, IF SOMEBODY CAN COME UP AND ANSWER THE QUESTION.

WHEN PUTTING OUT THE BIDS, I KNOW YOU SAID FEASIBILITY WAS ONE OF THE PERCENTAGES.

WAS THERE A BUDGET THAT YOU CAN'T GO OVER A CERTAIN AMOUNT? AND, IF SO, DID WE TAKE THAT

[01:10:05]

INTO CONSIDERATION? HOW WAS THAT NEGOTIATED IN THIS WHOLE CONVERSATION?

>> TREVINO: THAT WAS PART OF THE DESIGN COMPETITION AND CONSIDERATIONS AS THE JURORS LOOKED AT ALL THE CONSIDERATIONS AND FEASIBILITY WAS CERTAINLY ONE OF THEM, AS WELL AS DESIGN INNOVATION.

>> VIAGRAN: BUT WHAT WAS THE AMOUNT? $5 MILLION? $10 MILLION? $100,000?

>> LOOKING AT THE SCORING THAT THE PANEL HAD, THEY HAD A 30% OUT OF 100 WAS BASED ON FEASIBILITY.

SO IF SOMEBODY SUBMITTED A $5 MILLION VERSUS A $3 MILLION, YOU KNOW, WE'RE ESTIMATING THE WINNING SOLUTION WAS RIGHT AROUND A $3.4 MILLION PROJECT FOR THE ACCESSIBILITY.

BUT THERE WAS NO CEILING, AS I UNDERSTAND IT.

IT WAS JUST FACTORED IN.

>> VIAGRAN: SURE.

YOU CAN DESIGN ANYTHING AND SAY, HEY, HERE YOU GO.

AND IT COULD BE $20 MILLION BUT SOMETHING THAT'S NOT FEASIBLE.

OR EVEN $5 MILLION.

SO MY QUESTION IS, MY THOUGHT IS WHEN DOING THE DESIGN COMPETITION, HAVING THOSE FACTORS IN ON HOW THIS IS GOING TO IMPACT THE REST OF THE PROJECT THAT WE HAVE HERE.

BECAUSE NOW IT'S $30 MILLION BUT BEFORE THE DESIGN COMPETITION -- AND I'M NOT SAYING THAT I DON'T WANT ACCESS FOR ALL IN FRONT OF THE CITY HALL, BUT BEFORE THIS WHAT WAS THE COST THAT WE WERE LOOKING AT? STILL IN THE $30 MILLION RANGE?

>> SO BEFORE THE COMPETITION, WE KNEW THAT WE WANTED TO DO SOMETHING.

WE DIDN'T KNOW WHAT THAT WOULD BE.

BUT SOME TYPE OF EQUAL ACCESSIBILITY ON THE MAIN ENTRANCE.

BASED ON THE DISCUSSIONS WE KNEW WE WANTED TO DO THAT AS PART OF THE PROJECT.

WHAT THE CONTEST REALLY HELPED WAS SHOWING 22 IDEAS ON HOW TO DO THAT AND COMING DOWN TO ONE TREMENDOUS SOLUTION.

>> VIAGRAN: IT'S OKAY, COUNCILMAN.

>> TREVINO: I JUST WANT TO ADD THAT THE 22 HELPED TO PROVIDE SOME --

>> VIAGRAN: THANK YOU.

THANK YOU, COUNCILMAN.

HE CAN ANSWER THE QUESTION FOR ME.

SO THE 22 GAVE THE IDEAS.

>> YEAH.

TREMENDOUS IDEAS.

AND THEN, YOU KNOW, THE WINNING ELEMENT THERE NOW WE CAN TAKE THAT AND PROGRESS IT.

IT'S A DESIGN CONCEPT AT THIS POINT.

AND SO NOW WE CAN PROGRESS IT WITH THE DESIGN-BUILD PROCESS AND GET INTO THE DETAILS OF THE DESIGN.

>> VIAGRAN: TODAY WITH THE DESIGN-BUILD PROCESS, THE GUIDO BROTHERS WILL DO THE BUILD OUT OF IT?

>> YES.

IT WILL BE PART OF THE WHOLE PROJECT.

>> VIAGRAN: CAN YOU CONTINUE TO EXPLAIN HOW AS WE MOVE ON WITH THE POST SOLICITATION AND THE FINALIZATION THAT THIS IS NOT -- THAT THE DESIGN INSIDE THE LAYOUT.

YOU TALKED ABOUT HOW THIS IS JUST CONCEPTS.

THE FINALIZATION OF THE LAYOUTS ISN'T DONE YET.

HOW IS THAT GOING TO BE DONE IN THE PROCESS?

>> SO, WHAT I SHOWED YOU WAS KIND OF A GLIMPSE OF THE PHASE ONE PROGRAM THAT'S BEEN DEVELOPED.

AND WE WANT TO BE WORKING ON THE NEXT PHASE OF THAT, WHICH WOULD BE TO BETTER FINALIZE THE SPACE AND CONFIGURATIONS.

THAT WILL MOVE INTO THE DESIGN PROCESS WITH THE DESIGN-BUILD TEAM.

WE WILL BE PROVIDING UPDATES AS WE GO ALONG.

BUT THE GOOD THING ABOUT THE PROGRAM TODAY IS WE KNOW WHO ALL NEEDS TO BE THERE.

HOW THEY OPERATE WITH EACH OTHER AND HOW TO MAXIMIZE THAT SPACE, BOTH FOR THE PUBLIC AND ALL THOSE THAT ARE GOING TO BE PART OF THE FACILITY.

>> VIAGRAN: I CAN IMAGINE THIS IS GOING TO TAKE A WHILE.

JUST LOOKING AT ALL THOSE PICTURES THAT THE STABILIZATION THAT NEEDS TO HAPPEN, THE FACADE IMPROVEMENTS.

ALL OF THIS THAT'S GOING TO HAPPEN BECAUSE -- I MEAN, IT'S GOING TO BE A COMPLETE CHANGE ON THE INSIDE.

>> OH.

IT IS GOING TO BE UNBELIEVABLE.

IT'S GOING TO BE A TREMENDOUS USE AND IT'S GOING TO BE A BEAUTIFUL FACILITY WHEN IT'S DONE.

>> VIAGRAN: SO HOW ARE WE GOING TO GET THOSE UPDATES IN THE DESIGN PHASE? WE, AS COUNCIL.

IS IT GOING TO BE AT COMMITTEE MEETINGS? B SESSIONS? I WOULD PREFER B SESSIONS.

THAT WOULD BE IMPORTANT.

NOT NECESSARILY ONE OR ARTS AND CULTURE, HERITAGE, ONE OF THOSE COMMITTEES.

>> SCULLEY: MAYOR AND COUNCIL, IF YOU WOULD LIKE UPDATES IN THE B SESSIONS, WE'RE HAPPY TO DO THAT.

IN FACT, I THINK THAT WOULD BE MEDIA OUTLETS TO UPDATE THE PUBLIC AS TO THE PROGRESS ON THE DESIGN OF CITY HALL AND THE CONSTRUCTION SCHEDULE.

AND THOSE KINDS OF PUBLIC PRESENTATIONS ALSO KEEP OUR CONTRACTORS AND DESIGNERS ON SCHEDULE.

SO WE'RE HAPPY TO DO THAT.

>> VIAGRAN: VERY GOOD IDEA.

I'M GLAD TO MOVE FORWARD WITH THAT.

ONE OF THE THINGS I ALSO WANTED TO TALK ABOUT -- AND THANK YOU, MIKE, FOR ADDRESSING IT.

I WAS ABLE TO GO TO THE PLAZA DE ARMAS BUILDING AND TAKE A TOUR OF THE SECOND FLOOR.

[01:15:02]

IF Y'ALL HAVEN'T BEEN THERE I ENCOURAGE YOU ALL TO GO THERE.

WE DO ADDRESS THE ISSUES OF THE LIGHTING AND THE ROCKS HAVE FALLEN FROM THE CEILING AND HAVING TO PUT CHICKEN WIRE UP THERE BECAUSE THE ROCKS THAT HAVE FALLEN.

I UNDERSTAND THAT IT'S AN OLD BUILDING AND IT'S AN ABSOLUTELY BEAUTIFUL REDESIGN.

BUT AS WE GO THERE WE WANT TO MAKE IT A SAFE SPACE FOR OUR CURRENT AND FUTURE WORKERS AND EVERYBODY THAT COMES.

THANK YOU FOR CONTINUING TO ADDRESS THOSE ISSUES.

AND FINALLY, MOVING FORWARD, I THINK THE CONVERSATION WE HAVE BEEN HAVING IS ABSOLUTELY CRITICAL.

BECAUSE WE TALK ABOUT TO PRESERVE, BUT IT'S TO PRESERVE BUILDINGS.

BUT MORE THAN THAT, IT'S ABOUT PRESERVATION, REVITALIZATION, AND UTILIZATION.

THAT'S WHAT WE ARE DOING WITH OUR HISTORIC CITY HALL.

SO I THINK AS WE MOVE FORWARD WE KNOW THERE'S A NEED.

WE KNOW WE'RE GOING TO ADDRESS IT.

I'M GLAD THAT WE WILL.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.

COUNCILWOMAN GONZALES.

>> GONZALES: THANK YOU, MAYOR.

SO THIS IS A VERY EXCITING PROJECT.

AND I WAS EQUALLY EXCITED TO SEE THAT GUIDO HAD BEEN THE COMPANY THAT WAS SELECTED TO DO THIS WITH A, I THINK, VERY COMPETITIVE PROCESS.

BECAUSE I HAVE SEEN SOME OF THEIR WORK OVER THE YEARS AND, IN PARTICULAR, THE ZOO SCHOOL WHERE MY SON ATTENDS.

AND I HAVE THE GREAT FORTUNE TO DAILY -- TWICE A DAY -- GO TO THE ZOO SCHOOL THAT GUIDO CONSTRUCTION DESIGNED.

AND EVERY TIME I GO IT MAKES ME SMILE.

WHILE WE COME TO CITY HALL I DON'T ALWAYS ENTER THE BUILDING SMILING, BUT I THINK MAYBE ONCE WE ENTER, AND AFTER ALL THIS CONSTRUCTION IS DONE, THAT THAT MIGHT BE THE CASE. REASON WHY IY PROUD OF THE GUIDO FAMILY IS BECAUSE THEY ARE MULTIGENERATIONAL.

ACTUALLY, MARY ANN IS THE PRESIDENT AND THE ONE I THINK IS THE MUSCLE BEHIND THE COMPANY.

AND OFTEN MR. GUIDO IS THE ONE WHO COMES TO GIVE THE PRESENTATIONS, BUT I HAVE UNDERSTOOD SHE IS THE DRIVING FORCE.

AND I'M ALWAYS PROUD TO SEE WOMEN IN CONSTRUCTION LEADING THE WAY.

I HAVE JUST SOME QUESTIONS ABOUT THE GREEN DESIGN.

AND I KNOW THAT THIS BUILDING WAS ORIGINALLY BUILT IN 1886, I THINK, WHICH AT THAT POINT IN TIME THERE WAS PROBABLY NO HVAC.

AND SO THE DESIGN OF THE BUILDINGS WERE INHERENTLY VERY EFFICIENT BECAUSE THEY HAD REALLY THICK WALLS AND THEY WERE DESIGNED, I IMAGINE, TO HAVE AIR FLOWING THROUGH SOMEHOW, PROBABLY THROUGH OPEN WINDOWS.

I'M A LITTLE BIT CONCERNED, BECAUSE I HAVE DONE IT A COUPLE OF TIMES ON A PERSONAL LEVEL, THAT TRYING TO MAKE BUILDINGS REALLY ENERGY EFFICIENT IS VERY EXPENSIVE WHEN THE INHERENT DESIGN OF THEM WAS ALREADY THAT WAY AND THAT WE ARE NOT ADDING COSTS THAT ARE SUBSTANTIAL WHEN THE DESIGN ITSELF WAS ALREADY DESIGNED TO BE EFFICIENT.

MY QUESTION IS SUCH THAT IN AN ATTEMPT TO BE STATE OF THE ART WITH ENERGY EFFICIENT, ARE WE GOING OVERBOARD BECAUSE OF A DESIRE TO HAVE SOME SORT OF CERTIFICATIONS, WHEN THE BUILDING ITSELF IS ALREADY EFFICIENT?

>> SO THE ORIGINAL DESIGN OF THE BUILDING IS NOT NECESSARILY AN INEFFICIENT DESIGN BECAUSE OF, YOU KNOW, THE SQUARED OFF WALLS, THE RECTANGULAR SHAPE OF THE BUILDING AND SO FORTH.

THAT LENDS ITSELF TO SOME GOOD SUSTAINABILITY.

YOU DON'T HAVE A LOT OF ANGLES AND CURVATURE TO DEAL WITH.

THAT'S A GOOD STARTING POINT.

IT'S JUST THE FACT THAT IT'S OVER A CENTURY OLD THAT NOW IT'S POROUS AND WATER IS ENTERING FROM ALL DIFFERENT ANGLES AND THE SYSTEMS ARE DILAPIDATED.

WHAT WE DO NOW IS COME BACK IN AND RESTORE THAT BUILDING ENVELOPE.

THEN PUTTING -- AND WE'LL LOOK WITH THE DESIGN-BUILD TEAM.

THEY WILL BE PROPOSING THE ACTUAL SYSTEMS AND OF COURSE THEY WILL BE MEETING, YOU KNOW, GOOD SUSTAINABILITY STANDARDS.

WE DON'T NEED IT TO BE OVER THE TOP.

WE DON'T WANT TO SPEND MORE MONEY THAN NECESSARY.

>> GONZALES: I THINK THAT WAS REALLY THE POINT I WAS GETTING AT.

I LEARNED THIS ON A PERSONAL LEVEL IN MY OWN BUILDING BECAUSE I THOUGHT IT WOULD BE GREAT TO HAVE SOLAR.

IT WOULD BE GREAT TO HAVE THE LEAD CERTIFICATION, OR WHATEVER.

BUT THE ARCHITECT WHO DESIGNED THE BUILDING SAID IF YOU DESIGN IT RIGHT, ALL THOSE ADDITIONAL THINGS ARE NOT NECESSARY.

AND THEY ADD AN ADDITIONAL COST BUT ULTIMATELY, IN THE LONG RUN, DON'T MAKE MUCH OF A DIFFERENCE.

CONSIDERING THIS IS TAXPAYERS' DOLLARS, THE PRICE TAG IS ALREADY HUGE.

I HOPE WE'RE NOT EXCESSIVELY

[01:20:01]

SPENDING ON THAT KIND OF --

>> YEAH.

THAT'S WHY IT'S A HOLISTIC APPROACH.

LET'S SAY WE WANT TO REPLACE THE HEATING AND AIR-CONDITIONING SYSTEM.

THAT'S ALL WE'RE GOING TO DO IS REPLACE THAT SYSTEM WITH STATE OF THE ART SYSTEM.

WELL, THE PROBLEM IS THAT THAT BUILDING, YOU KNOW, IS JUST GOING TO -- ALL THAT ENERGY IS GOING TO ESCAPE FROM THE BUILDING.

SO NOW WITH THE HOLISTIC APPROACH, THERE WILL BE PROPER TREATMENT ON THAT BUILDING ENVELOPE.

AS THEY PUT IN THE HEATING AND AIR-CONDITIONING SYSTEM IT WILL BE APPROPRIATELY SIDES AND AN APPROPRIATE SYSTEM FOR THAT BUILDING ITSELF.

WE WILL MAKE SURE THAT WE SPEND APPROPRIATELY.

WE'RE ALWAYS GOOD STEWARDS OF THE PUBLIC DOLLAR.

WE SPEND APPROPRIATELY.

WE HAVE THE SYSTEM SIZE FOR THAT TYPE OF FACILITY, AND NOT NECESSARILY MORE THAN WHAT'S NEEDED, FOR SURE.

>> GONZALES: WELL, I WOULD LIKE TO JUST EMPHASIZE THAT.

AND I THINK AS WE ARE, YOU KNOW, EVOLVING AND GETTING UPDATES THAT THAT WILL BE INCLUDED.

AND ALSO REGARDING THE SECURITY FEATURES.

SO YOU MENTIONED THAT -- I THINK SOMEBODY ASKED THE QUESTION ABOUT THE SECURITY.

AND I KNOW THAT'S BECOME AN ISSUE IN JUST MODERN LIFE.

WE HAVE TO BE VERY CONCERNED ABOUT THAT.

I KNOW I ACTUALLY RECEIVED DEATH THREATS AND HAD SOMEBODY FOLLOWING ME AT ONE TIME.

SO HOW WILL THAT -- THAT WILL STILL BE PART OF THE PROCESS? I KNOW, FOR EXAMPLE, THE OLD COUNTY COURTHOUSE YOU STILL HAVE TO GO IN THERE -- EVERYBODY HAS TO GO THROUGH SECURITY.

IS THAT GOING TO BE PART OF THIS?

>> YES.

WE WILL REFINE THAT.

BUT WE HAVE ALREADY LOOKED AT THAT PRETTY EXTENSIVELY TO KNOW THAT WE WANT THE PUBLIC TO BE ABLE TO COME THROUGH, GO THROUGH SECURITY, HAVE ACCESS TO THE BASEMENT AND THE FIRST LEVEL, THE MAIN LEVEL THERE, AS THEY POTENTIALLY HAVE MEETINGS.

COUNCIL MEMBERS, CITY MANAGER, MAYOR, IF THEY WANT TO HAVE THEIR MEETING DOWN ON THE FIRST LEVEL IN THE BASEMENT, THEY WILL BE A CONFERENCE LEVEL SPACE WHERE THEY CAN MEET PEOPLE DOWN THERE.

I WANT TO MAKE SURE WITH SECURITY THAT PEOPLE, IF THEY ARE GOING TO COME TO THE UPPER LEVELS WHERE YOU ALL ARE, THAT THEY WOULD BE ESCORTED UP.

THEY COULDN'T JUST COME INTO THE ELEVATOR AND COME UP.

THEY WOULD NEED TO BE ESCORTED.

BUT IT WOULDN'T NECESSARILY HAVE TO COME UP TO THOSE UPPER FLOORS.

THERE WILL BE PLENTY OF MEETING SPACE THAT YOU ALL CAN USE ON THE MAIN FLOOR AND ON THE BASEMENT LEVEL.

>> GONZALES: GOOD.

I'M GLAD TO SEE THAT THOSE THINGS WILL BE ADDRESSED AS BEST AS POSSIBLE.

SO I THINK THE OTHER QUESTION I HAVE IS JUST A QUESTION FOR LORI REGARDING SOME OF THE THINGS THAT YOU MENTIONED WHEN YOU PULLED CITY STAFF ABOUT WHAT AMENITIES THEY MIGHT LIKE TO SEE.

I WAS SURPRISED THAT CHILD CARE, ONLY 14% OF THE PEOPLE SAID THEY NEEDED CHILD CARE.

>> YES.

>> GONZALES: I GUESS I WAS SORT OF SURPRISED BY THAT.

I KNOW THAT IT JUST COMES UP SO OFTEN THAT PEOPLE WOULD ATTEND MORE MEETINGS.

PEOPLE WOULD BE MORE LIKELY TO PARTICIPATE IN CITY GOVERNMENT IF WE WERE DOING IT A LITTLE BIT DIFFERENTLY.

I WAS JUST VERY SURPRISED TO SEE CHILD CARE ONLY HAVING THE SAME BASIC AMENITIES AS IT WOULD BIKE STORAGE.

>> AND WE THINK THAT LOOKING AT SOME OF THE REASONS, A LOT OF PARENTS LIKE TO HAVE THEIR CHILD CARE CLOSE TO THEIR HOME, SO YOU HAVE TWO PARENTS TAKING TURNS PICKING UP THE CHILD.

THAT COULD BE ONE REASON, BUT WE WILL CONTINUE TO EXPLORE THAT.

I KNOW OTHER COMPANIES HAVE EXPLORED IT, SO WE'LL CONTINUE TO LOOK AT THAT.

BUT IT'S SHOWING A LOW SUPPORT IN OUR SURVEYS.

>> GONZALES: YEAH.

I WAS VERY SURPRISED TO SEE THAT.

YOU KNOW, SOMETIMES THINGS LOOK DIFFERENTLY THAN WE ANTICIPATED.

I'M SURE THAT I GUESS THAT WILL EVOLVE AS TIME GOES ON.

OKAY.

WELL, THANK YOU.

THANK YOU, LORI.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES.

COUNCILWOMAN SANDOVAL.

>> SANDOVAL: THANK YOU, MAYOR.

I WANT TO THANK MY COLLEAGUES FOR ASKING THOSE GREAT QUESTIONS.

I HAVE BEEN LEARNING A LOT ABOUT THIS.

I'M OF COURSE SUPPORTIVE OF THE PROJECT AND OF CONSERVING CITY HALL AND MAKING IT LIVE UP TO ITS POTENTIAL SO THAT WE CAN CONDUCT BUSINESS IN OUR HISTORIC BUILDING THERE.

SO THANK YOU FOR ALL THE WORK THAT YOU'VE DONE FOR GETTING US HERE.

IT WASN'T EASY, I'M SURE.

AND WE'RE JUST STARTING.

I'M EXCITED TO HEAR YOU TALK ABOUT ENERGY EFFICIENCY AND SHOWERS.

BUT I HAVE TO ASK YOU SAID SOMETHING ABOUT RENEWABLE ENERGY, MIKE?

[01:25:04]

>> YES, COUNCILMAN.

SO AT THIS POINT IN THE PROJECT EVERYTHING IS ON THE TABLE.

SO AS WE BRING IN THE GUIDO TEAM WITH FORD PAL CARSON, WHO HAS DONE A LOT OF HISTORIC FACILITY RENOVATION WORK AND NEW FACILITY WORK, WE WANT EVERYTHING TO BE ON THE TABLE AND JUST DISCUSS WHAT MAKES SENSE FOR THIS PROJECT, WHAT CAN WE DO.

YOU KNOW, AGAIN, TO COUNCILWOMAN GONZALES' POINT, WE DON'T WANT TO SPEND MONEY JUST TO SPEND MONEY.

BUT IF IT'S GOING TO SAVE OPERATIONS AND MAINTENANCE IN THE FUTURE, THOSE ARE THINGS THAT WE WANT TO CONSIDER.

IF IT MAKES SENSE, THEN WE WANT TO DO IT.

SO RENEWABLE ENERGY, THAT'S SOMETHING WE WILL LOOK AT AS WELL.

>> SANDOVAL: WE GOT THE B SESSION BRIEFING AND I THINK MOST OF US, IF NOT ALL OF US, ARE CONVINCED SOMETHING MUST BE DONE AND IT'S NOT APPROPRIATE TO WAIT.

BUT WE ARE APPROVING A $30 MILLION CONTRACT TODAY SO IT'S KIND OF HARD TO SAY, OH, WELL WE DON'T KNOW EXACTLY WHAT WE'RE GOING TO GET FOR THAT.

WHEN YOU SAY YOU POTENTIALLY GOING TO HAVE THIS OR THAT, COULD YOU PLEASE WALK ME THROUGH HOW WE GOT TO THE $30 MILLION TOTAL AND WHAT THAT WILL INCLUDE.

WHAT WE ARE GUARANTEED TO GET TO THAT AND HOW YOU CAME TO THAT ESTIMATE, PLEASE.

>> YES.

LAST YEAR WHEN WE DID THE FACILITY ASSESSMENTS WE HAD PRIVATE SECTOR EXPERTS LOOK AT ALL THE SYSTEMS WE TALKED ABOUT.

THE ACTUAL BUILDING ENVELOPE ITSELF, THE FOUNDATION, STEPS, EVERYTHING TO DO WITH IT.

START PRICING, IDENTIFYING THOSE NEEDS, START PRICING THOSE COMPONENTS.

AND THEN WE WORKED WITH A THIRD PARTY ESTIMATOR.

COUNCILS HAVE IMPROVED IN THE PAST A COUPLE OF ESTIMATORS THAT CAN TAKE A LOOK AT THAT INFORMATION AND PUT IT TOGETHER AS A WHOLE PROJECT, WHAT IT'S GOING TO TAKE FOR A CONTRACTING TEAM TO COME IN AND UPGRADE EVERYTHING AND REPLACE EVERYTHING AS PLANNED.

SO WE DO HAVE A VERY DETAILED SCOPE OF WHAT NEEDS TO HAPPEN FOR THIS PROJECT.

AND THEN THAT ROLLS UP INTO THAT $30 MILLION NOT TO EXCEED AMOUNT.

SO THE WAY THAT THE PROJECT PROGRESSES THEN UPON APPROVAL, WE'LL START GETTING INTO THAT DESIGN PHASE.

AT A CERTAIN POINT IN THE PROJECT WE WILL HAVE A GUARANTEED MAXIMUM PRICE.

THEY CAN'T GIVE THAT TODAY BECAUSE WE NEED TO GET FURTHER INTO THE DESIGN TO REALLY PRICE THINGS OUT THOROUGHLY.

BUT IT HAS TO BE WITHIN THAT $30 MILLION.

IT HAS TO BE.

THAT WILL BE THE COUNCIL APPROVAL.

SO IF THEY ARE TRACKING AND THEY ARE RIGHT THERE AT THE NUMBERS, GREAT.

IF WE CAN BE UNDER THAT, GREAT.

BUT THE GUARANTEED MAXIMUM PRICE WILL HAVE TO BE WITHIN THE APPROVED COUNCIL AMOUNT.

>> SANDOVAL: SO IS THERE ANY PLACE WHERE I CAN ACCESS THAT ESTIMATE? I WOULD LIKE TO SEE IT.

>> YES.

>> SANDOVAL: OBVIOUSLY NOT BEFORE WE TAKE THE VOTE TODAY, BUT I DO GET QUESTIONS.

>> IT'S SOMETHING WE CAN SEND OUT TO THE MAYOR AND COUNCIL AFTER THE MEETING.

>> SANDOVAL: THANK YOU.

JUST REALLY QUICKLY, YOU WALKED US THROUGH YOUR TIME LINE.

YOU DID THE FIRST ROUND AND THEN YOU WENT INTO THE SECOND ROUND.

YOU TOLD US WHEN THE RFP WAS DUE, BUT YOU DIDN'T SAY WHEN IT WAS ISSUED.

>> YES.

LET'S SEE.

IF WE GO TO THE SLIDE THAT HAS THE -- LET ME SEE WHICH ONE THAT IS HERE.

IF WE GO TO THE SLIDE NUMBER -- I HAVE TO PULL THE GLASSES OUT FOR THIS ONE.

21.

SO THIS GIVES THE FULL TIMELINE.

SO THE RFQ, COUNCILWOMAN SPECIFICALLY WHICH STEP?

>> SANDOVAL: RFQ DUE FEBRUARY 28, 2018.

AND THEN RFP DUE APRIL 20, 2018.

SO I GUESS HOW MUCH TIME DID THE RESPONDENTS HAVE TO PREPARE THEIR RFP?

>> SO THE RFQ WAS DUE FEBRUARY 28.

AND THEN THE PANEL CONVENED TO EVALUATE THOSE SIX SUBMITTALS AND MAKE A DETERMINATION TO GO DOWN TO THE TOP TWO.

AND SO BASED ON THAT THEN THE TWO FIRMS, OR THE TWO TEAMS HAD A GOOD THREE WEEKS OR SO TO GET PREPARED FOR THE INTERVIEW PROCESS AND ANSWER THOSE QUESTIONS.

>> SANDOVAL: OKAY.

AND TO SUBMIT A DOCUMENT THAT WAS THE ACTUAL RFP?

>> YES.

SO WHEN WE ISSUED THE RFP, WE ARE INVITING THEM TO THE INTERVIEWS.

>> SANDOVAL: OH, OKAY.

>> WE DON'T HAVE TO INTERVIEW ON EVERY PROJECT, BUT A PROJECT LIKE THIS, IT MAKES SENSE.

YOU ARE GOING TO SHORT LIST DOWN TO, IN THIS CASE, TWO TEAMS. THEN THE RFP WENT OUT TO SAY GIVE US SOME OF YOUR PRICING COMPONENTS RELATED TO THE -- NOT

[01:30:03]

NECESSARILY THE GUARANTEED MAXIMUM PRICE AT THIS POINT, BUT MORE PERCENTAGE OF FEES ASSOCIATED WITH THE OVERALL PROJECT.

AND THEN HERE'S WHAT WE PLAN TO ASK YOU IN THE INTERVIEW SO THAT THEY CAN PREPARE, BASICALLY COME IN WITH A POWERPOINT PRESENTATION TO THE PANEL TO PRESENT WHY THEY ARE THE BEST TEAM FOR IT.

>> SANDOVAL: THANK YOU FOR CLARIFYING THAT.

AND THEN ON THE NEXT SLIDE, IF YOU COULD BRING THAT UP.

YOU HAVE SBEDA, MENTORSHIP REQUIREMENT.

THEN THERE'S A TEAM OF GOAL SETTING MEMBERS.

AND THAT'S FOR SBEDA GOAL SETTING?

>> YES.

YEAH, THAT'S FOR EVERY PROJECT BEFORE IT GOES TO CONSTRUCTION, GOES TO THE GOAL SETTING COMMITTEE.

>> SANDOVAL: REMIND ME HOW DO YOU SELECT THOSE MEMBERS? I HAVE TO POINT OUT THEY ARE ALL MEN.

YOU KNOW I HAVE TO.

>> RENE, YOU WANT TO TALK ABOUT HOW THE GOAL SETTING COMMITTEE IS SET?

>> GOOD MORNING.

IN GENERAL LET ME GIVE YOU THE BASIC OUTLINE.

TRADITIONALLY THE ISSUING DEPARTMENT PRESENTS A SCOPE OF WORK.

THAT SCOPE OF WORK IS THEN DIVIDED INTO ALL THE DIFFERENT CATEGORIES OF THE WORK.

THEN IT IS RUN AGAINST CENTRAL VENDOR REGISTRATION TO SEE WHO IS AVAILABLE IN THE MARKET.

AND THEN THAT'S COMPARED TO THE SCOPE TO DETERMINE WHAT PERCENTAGE SHOULD BE SUBCONTRACTED.

THAT'S GENERALLY HOW IT'S DONE.

SO BASED ON THIS TREMENDOUS

>> THAT'S GENERALLY HOW IT'S DONE.

BASED ON THE AMOUNT OF SCOPE WE MAXIMIZED THE SUBCONTRACTING.

>> WHAT DO -- IS THAT SOMETHING THAT COMES OUT OF YOUR OFFICE?

>> THE GOAL SETTING MEMBERS.

>> WHAT ROLE DO THEY PLAY IN THAT?

>> THE GOAL SETTING MEMBERS THE PUBLIC MEMBERS, THE TWO CITIZENS ARE APPOINTED BY COUNCIL.

THE OTHER MEMBERS BASED ON THE ACTUAL PROJECT, SO THE ISSUING DEPARTMENTS THERE, IF IT'S A TCI PROJECT, THEN TCI IS WILL.

IF IT'S PURCHASING COMMODITY TYPE OF PROJECT, THEN FINANCE IS THERE.

>> OKAY.

>> THE SMALL BUSINESS OFFICE IS ALSO PART OF THAT.

WE ACTUALLY PRESENT THE RECOMMENDATION ON THE GOAL AND THEN, IN ADDITION TO THAT THERE'S A REPRESENTATIVE FROM THE CITY MANAGER'S OFFICE THAT OVERSEES THE COMMITTEE.

>> THEY ARE THERE TO PROVIDE A LEVEL OF REVIEW.

RIGHT? YOU PROVIDE RECOMMENDATION BUT THEIR ROLE IS PROVIDE --

>> YES, ABSOLUTELY.

>> THANK YOU FOR -- FOR CLARIFYING THAT.

JUST ONE LAST QUESTION, ON THE J JOC, REMIND ME AGAIN HOW YOU SELECTED DAVE LA TO THAT?

>> YES.

SO, A COUPLE YEARS CITY COUNCIL APPROVED A SLATE OF CONTRACTORS.

WE'VE HAD THOSE CONTRACTORS ON CALL.

DAVILA IS PART OF THE TEAM BUILDING THE SAN PEDRO CREEK PROJECT, SO THEY ARE RIGHT THERE RIGHT NEXT TO WHERE THE MODULAR BUILDINGS ARE GOING, SO WE REALLY WANTED THEM TO DO THIS EARLY WORKS PACKAGE, BECAUSE THEY ARE RIGHT THERE.

WE DIDN'T WANT TO INTRODUCE A NEW CONTRACTOR RIGHT NEXT TO THEM.

SO THAT'S WHY WE NEGOTIATED WITH DAVILA TORE THIS JOB ORDER CONTRACTOR TASK ORDER.

>> SO, THEN IN OUR PACKET, WE HAD A SCORING SUMMARY FOR JOB ORDER CONTRACTOR.

THAT WAS NOT SPECIFIC TO THIS PROCESS THEN?

>> NO.

THAT WOULD HAVE BEEN THE ORIGINAL SELECTION THAT GAVE DAVILA AND OTHERS THE WORK FOR THIS.

SO, BASICALLY, IT'S A SELECTION OF THE CONTRACTOR FOR THIS PARTICULAR JOB.

NEGOTIATING THE FEE ASSOCIATED WITH IT AND ISSUING THE RELEASE TO START WORK.

>> THANK YOU FOR ANSWERING ALL OF MY QUESTIONS IRK WANT TO ECHO COUNCILMAN PELAEZ SUGGESTIONS REGARDING -- DON'T LOOK SURPRISED THEY WERE GREAT SUGGESTIONS -- GRANT SEEKING AND COUNCILWOMAN'S SUGGESTION OF REGULAR UPDATES AT "B" SESSION.

LOOKING FORWARD TO THAT.

THANK YOU VERY MUCH AND THANKS FOR ALL OF WORK.

>>> THANK YOU COUNCILWOMAN SANDOVAL, COUNCILMAN PERRY.

>> PERRY: BIG PROJECT, RIGHT? MIKE, I PROBABLY HAVE A FEW QUESTION FORCE YOU HERE.

THE COST IS GOING TO BE COVERED HOW IS IT FUNDED?

>> PERRY: YES.

>> I'LL HAVE BEN SPEAK TO THAT BUT IT'S THROUGH CERTIFICATES OF OBLIGATION.

BEN, YOU WANT TO TALK ABOUT HOW THAT WORKS?

[01:35:01]

>> GOOD MORNING, COUNCILMEN.

THE PROJECT WILL BE FUNDED WITH CERTIFICATES OF OBLIGATION WHICH IS A FORM OF BOND THAT IS SUPPORTED BY AND IS PAID BY PROPERTY TAXES.

>> PERRY: OKAY.

SO, BASICALLY, WE'RE JUST TAKING THIS PROJECT AND SAYING, WE GOT THIS CAPABILITY OUT HERE, THIS BOND CAPABILITY, WE'RE JUST GOING TO DO IT THROUGH THE CERTIFICATES OF OBLIGATION.

AND THERE'S NO REAL INPUT FROM CITIZENS ACROSS THE CITY, OR ANYTHING LIKE THAT.

IT'S BASED ON THE COUNCIL'S DECISION TO USE THOSE CERTIFICATES OF OBLIGATION.

>> THE --

>> MAYOR NIRENBERG: SIR, YOU WANT TO CLARIFY THAT?

>> JUST TO ADD, MAYOR, THAT WE ANNUALLY PRESENT A DEBT PLAN TO THE MAYOR AND CITY COUNCIL THAT IS PART OF THE BUDGET PROCESS AND ALL OF THE PUBLIC MEETINGS AND INPUT THAT WE HAVE ON OUR OVERALL BUDGET, AND THIS WAS PART OF THE DEBT PLAN IN THE ADOPTED BUDGET THAT COUNCIL APPROVED IN SEPTEMBER, SO, IT WAS A PART OF THE ENTIRE PUBLIC PROCESS THAT WE USED FOR

>> PERRY: ALL RIGHT.

I DON'T RECALL SEEING THAT SPECIFICALLY LAID OUT IN THE BUDGET PLAN FOR $40 MILLION PROJECT FOR CITY HALL.

WAS IT A SPECIFIC LINE ITEM IN THE BUDGET?

>> ON THIS PROJECT, WE CAME BACK TO YOU, I WANT TO SAY, IN SEPTEMBER OR OCTOBER DURING A "B" SESSION AND TALKED ABOUT THE FACT THAT WE HAD SOME DEBT CAPACITY WITHIN OUR DEBT PLAN TO BE ABLE TO FUND THE PROJECT.

SO, IF I CAN JUST ADD A LITTLE TO WHAT THE CITY MANAGER TALKED ABOUT.

ON AN ANNUAL BASIS, WHAT WE DO, WE LOOK AT OUR ENTIRE PROPERTY TAX DEBT PLAN, AND FIRST AND FOREMOST WE'RE GOING TO MAKE SURE WE'RE SUPPORTING FUNDING FOR GENERAL OBLIGATION BONDS THAT WE HAVE IN PLACE THAT WE'VE BEEN DOING SINCE 20007.

IN BETWEEN THE BOND ELECTION AND BOND PROGRAMS WE UPDATE THAT PLAN AND LOOK AT OUR CAPACITY.

THERE'S SOME YEARS WHERE THERE WILL BE NO CAPACITY.

WHERE WE ISSUED NO ADDITIONAL CERTIFICATES OF OBLIGATION AND THERE'S SOME YEARS WHERE WE DO HAVE SOME ROOM AND TRY TO ADDRESS CAPITAL NEEDS THAT COME UP WITHIN THAT FIVE-YEAR TIME FRAME BY UTILIZING THIS INST INSTRUMENT.

ALL OF THE DEBT PLANNING THAT WE DO IS GROUNDED IN FUNDAMENTAL PRINCIPLES THAT WE TALK ABOUT.

IN TERMS OF HOW WE DO OUR DEBT PLANNING ALL OF THAT TO SAY ALL OF THOSE THINGS FORM TOGETHER TO FORM BOND RATING AS WELL.

WE DON'T DEVIATE FROM THAT.

IT'S A MANNER OF MANAGING THE ECONOMY AS THE ECONOMY IS CHANGING AND SEEING GROWTH IN VALUES, GROWTH IN NEW IMPROVEMENTS AS OUR CITY IS GROWING.

WE ARE ABLE TO ADJUST CAPACITY AND THIS IS ONE OF THE TOOLS WE USE TO DO THAT.

>> PERRY: AGAIN, I DON'T RECALL SEEING THAT LANGUAGE IN THE BUDGET PROCESS FOR THIS.

I REMEMBER THE "B" SESSION, AND DISCUSSING IT, AND I THINK I BROUGHT UP THE FACT THAT, HEY, WHY DON'T WE PUT THIS BUILDING THE WAY IT WAS AND WENT FROM THERE.

IF THIS PROJECT WASN'T APPROVED WE COULD TAKE $4 MILLION AND SAY, HEY, WE NEED TO DO ADDITIONAL STREET WORK, RIGHT?

>> CERTIFICATES OF OBLIGATION COULD BE USED FOR A NUMBER OF DIFFERENT PROJECTS.

YES, THAT CAPACITY COULD BE APPLIED TO DIFFERENT PROJECTS.

THAT'S THE COUNCIL'S PROBLEMIVE TO DO THAT.

>> PERRY: OKAY.

WE CAN USE ADDITIONAL CAPACITY FOR OTHER PROJECTS AROUND THE CITY.

OKAY.

THANK YOU.

LET'S TALK ABOUT THE ALTERNATIVES A LITTLE BIT.

MIKE, YOU YOU KNOW, I'M TALKING ABOUT THIS LETTER HERE.

I THINK LORI PUT TOGETHER WITH AND SHERYL HAD SENT OUT.

THE FOUR FLOORS ON THE -- YOU SAID TO REHAB THE TWO FLOORS AT THE FROST WAS 13.4 MILLION ON THIS LETTER, AND THEN THERE WAS JUST A THOUGHT ABOUT HEY, LET'S REPURPOSE THE OLD CITY HALL AND MAKE IT -- JUST AN IDEA -- LET'S MAKE IT A MUSEUM.

SO I'M SEEING THAT AS ABOUT 26 MILLION.

I THINK YOU MENTIONED IT WAS 40 MILLION EARLIER.

>> RIGHT.

>> PERRY: BUT I'M SEE 26 MILLION ON THIS LETTER.

>> RIGHT.

SO, THE DIFFERENTIAL HAS TO DO WITH THE LEASE.

RIGHT NOW, THE FLOORS THAT WE WOULD, IF WE TOOK THAT SCENARIO, INSTEAD OF HAVING LEASE SPACE OVER IN FROST, AND THAT REVENUE FOR THE FUTURE HAS BEEN PART OF THAT PROFORMA, WE COULD ACTUALLY USE THAT FOR CITY USE.

SO, PART OF WHAT I WAS REFERRING

[01:40:02]

TO WAS THE BIGGER NUMBER, INCLUDES NOT GETTING THOSE LEASE PAYMENTS IN THE FUTURE.

>> PERRY: THAT'S A FAIR COMMENT.

I LOOK AT THAT, WELL, 26 VERSUS 40.

THAT'S A $14 MILLION DELTA THERE, THAT YOU'D BE SAVING RIGHT OFF THE BAT, THAT SHOULDN'T BE ACCOUNTED TO, IF WE HAD MOVED INTO THE FROST TOWER.

SO, YOU -- I'M JUST -- THIS IS JUST SIMPLE MATH TO ME.

I -- WE DIDN'T COUNT THAT SAVINGS, IF WE HAD MOVED INTO THE FROST TOWER AND THIS IS JUST AN ALTERNATIVE.

WHAT I'M LOOKING AT HERE.

THE SAME THING WITH BUILDING A NEW BUILDING.

WOULD CERTAINLY BE CHEAPER.

AND, WE'RE TALKING -- WE'VE -- WE'VE WRAPPED IN ACCESSIBILITY INTO THIS, INTO THE CITY HALL RENOVATION AND INUNDERSTAND THAT.

WE DON'T HAVE GOOD ACCESSIBILITY.

BUT, I COULD SAY WHATEVER WE DO, WHETHER WE USE ANOTHER ALTERNATIVE, OR WE BUILD A NEW BUILDING OR MOVE INTO FROST, WE WOULD HAVE ACCESSIBILITY, AND I WANT TO MAKE THAT -- MAKE SURE THAT MR. MIRANDA AND MR. HARTMAN KNOW THAT, THAT NO MATTER WHERE WE GO, OR WHERE WE WOULD GO, WE WOULD HAVE THAT ACCESSIBILITY.

IT'S NOT JUST TIED TO THIS REHAB.

SO, I WANT TO MAKE THAT CLEAR.

I JUST -- THE NUMBERS, TO ME, THIS IS A LARGE NUMBER, AND A LARGE FACILITY THAT I TELL DON'T UNDERSTAND WHY IT WASN'T INCLUDED ON THIS LAST BOND.

I MEAN, THIS ALL DIDN'T JUST HAPPEN SINCE THE LAST BOND THAT WE NOTICED, OH, WOW, WE'VE GOT TO DO THIS BUILDING AND WE'RE GOING TO TAKE OUT CERTIFICATES OF OBLIGATION.

WHY WAS THIS NOT INCLUDED ON THE 2017 BOND?

>> SO, COUNCILMAN, AS YOU KNOW, SERVING ON THE STREETS COMMITTEE OF THE BOND PROGRAM PRIOR TO BEING A COUNCILMAN, THERE WAS QUITE A PROCESS FOR THE BOND AND THIS WAS A PROJECT THAT, IN THE EARLY STAGES WAS THOUGHT ABOUT FOR THE BOND ALONG WITH MANY OTHER PROJECT, AND, SO, YOU KNOW, BETWEEN FIRE STATIONS, POLICE STATIONS, LIBRARY FACILITIES, COMMUNITY CENTER, FACILITIES LIKE THIS, AND IT SIMPLY DIDN'T MAKE IT THROUGH WITH ALL OF THE PRIORITIES THAT WE HAD FROM -- FOR ALL OF THE DIFFER PROPOSITIONS, SO, IMPORTANT PROJECT, BUT, AGAIN, IT DIDN'T MAKE IT IN THROUGH THE PUBLIC PROCESS, AND DIDN'T MAKE IT TO ULTIMATELY THROUGH THE CITIZEN COMMITTEES AND ON TO COUNCIL AND TO THE VOTERS, BECAUSE THERE'S SO MANY OTHER GREAT PROJECTS AS WELL.

AGAIN, WE'RE PUTTING IN THE NUMBER ONE PRIORITY WITH THE BOND FOR THE FIRE DEPARTMENT, WITH A NEW FIRE STATION.

NUMBER ONE PRIORITY FOR THE POLICE DEPARTMENT WITH A NEW POLICE SUBSTATION, PARKS HEADQUARTERS, SOME GREAT COMMUNITY CENTERS IN THEIR LIBRARY IMPROVEMENTS, SO, YOU JUST CAN'T DO IT ALL.

EVEN THOUGH IT'S $850 MILLION BOND, EVERYTHING COULDN'T BE IN THERE.

THERE'S A LOT OF PROJECTS THAT ARE GOOD BUT WEREN'T ACTUALLY, IN THE END, PUT INTO THE BOND.

>> MAYOR NIRENBERG: SHERYL, YOU WANT TO ADD TO THAT?

>> JUST TO ADD THAT 70 TO 80 PERCENT OF OUR BOND PROGRAM IS DEDICATED TO STREETS, SIDEWALKS AND DRAINAGE IMPROVEMENTS, WHICH HAS BEEN THE FOCUS OF THE BOND PROGRAMS, THE LAST THREE BOND PROGRAMS, SO THAT A MAJORITY IS GOING INTO HORIZONTAL INFRASTRUCTURE, AND AS WE PUT TOGETHER THIS COMPLICATED PLAN THAT ALLOWED FORECAST TO BUILD A NEW TOWER, WE PURCHASED THEIR OLD TOWER AND WE DID THE LAND TRANSACTIONS OF A VARIETY OF PIECES OF PROPERTY AND INCORPORATED RENOVATIONS OF THE FROST BUILDING INTO THE PLAN.

IN CONVERSATIONS AND DISCUSSIONS WITH THE COUNCIL AS THEY APPROVED THE PROJECT GOING FORWARD OVER TIME, IT WAS DEVELOPED, ASSUMING THAT WE'D HAVE TO FIND ANOTHER WAY TO FINANCE THIS RENOVATION OF CITY HALL.

AND SO IT WAS NOT INCLUDED AND WAS NOT RECOMMENDED, AS A BOND PROJECT FOR THE VOTERS' CONSIDERATION.

SO, THAT'S A LITTLE BIT MORE BACKGROUND ON ITS DEVELOPMENT.

BUT, AS WE ALL KNOW, MOST OF THE BOND PROGRAM PROCEEDS AND PROJECTS ARE RECOMMENDED FOR STREETS, SIDEWALKS, DRAINAGE IMPROVEMENTS IN THE COMMUNITY.

>> YEP.

>> PERRY: APPRECIATE THAT.

AGAIN, I WAS ON THAT STREET'S COMMITTEE AND IT WAS A HUGE BOND PROGRAM, BUT YOU MADE A GOOD COMMENT THAT IT WASN'T RECOMMENDED FOR THE BOND, FOR THE VOTERS TO VOTE ON, AND THAT MEAN ACE LOT TO ME.

I THINK, AGAIN, I -- I THINK A PROJECT OF THIS STATURE AND THIS MAGNITUDE, REALLY REQUIRES OUR CITIZENS' INPUT ON THAT.

AND SPEAKING OF WHICH, LET ME

[01:45:03]

JUST READ SOME OF THIS.

WE PUT OUT A SNAP POLE.

IN FACT, THERE WAS THREE DIFFERENT SNAP POLES PUT OUT TO THE PUBLIC TO GET DIFFERENT COUNCIL, CITIZEN INPUT ON THIS PROJECT.

LET ME READ SOME OF THE COMMENTS HERE.

THIS IS -- ON THE PROJECT.

NO, THEY COULD FIND ANOTHER PLACE IF IT'S INADEQUATE FOR THEIR NEEDS AND MAKE A MUSEUM OUT OF IT FOR THE BENEFIT OF TOURISTS.

TOURISTS ARE THE PEOPLE THAT BRING MONEY TO THIS TOWN TO SEE THE RIVERS, SAN FERNANDO CATHEDRAL, GOVERNOR'S MANSION AND THAT IS ALL IN THE SAME AREA.

I'M SURE THE WORLD OF ELECTRONICS HAS CAUGHT UP WITH THE BEAUTIFUL OLD BUILDING AND THAT IS A GREAT EXPENSE TO UPDATE.

THAT BUILDING DOES NOT HAVE HANDICAPPED ENTRANCE ANYWHERE NEAR THE FRONT DOOR.

THAT'S FROM BETTY FROM FOREST OAK.

READ ANOTHER ONE.

THE VOTERS OF SAN ANTONIO APPROVED $850 MILLION BOND PACK ANNUAL DURING THE LAST ELECTION.

WHY WASN'T THAT INCLUDED WITH THE PACKAGE.

IS THE CITY SO SHORT-SIDED THAT THEY -- 850 MILLION --

>> THAT'S JAMES IN THOUSAND OAKS.

WHY WOULD SO MANY MILLIONS BE NEEDED TO DO A RENOVATION.

HOW ABOUT COUNCIL APPROVES HOMESTEAD EXEMPTION AND LET THE PEOPLE DECIDE ON THE REASONABLE AMOUNT OF MONEY TO DO THE RENOVATION.

THAT'S FROM STEVE FROM OAK HALLOW PARK.

AND THERE'S ANOTHER ONE.

38 MILLION IS A LOT TO ASK FOR WITH ONLY A DAY TO GET THE DETAILS.

ALTERNATIVES ARE NEEDED TO MAKE A SOUND DECISION.

THAT'S JOSE, ACTUALLY, FROM DISTRICT 6 COMMENT FROM SILVER CREEK EAST.

SO, I'M NOT DISPUTING THAT WE NEED TO DO SOMETHING WITH THAT OLD BUILDING.

IT IS IN A LOT OF REPAIR NEEDS THAT HAVE BEEN NEGLECTED OVER THE YEARS.

I DON'T AGREE THAT WE SHOULD JUST TAKE CERTIFICATES OF OBLIGATION OUT OF THE NEIGHBORS OUT THERE, TO HAVE -- GET THEM AN OPPORTUNITY TO VOICE THEIR OPINIONS.

AND, OH, BY THE WAY, THE OVERALL OPINION FOR DISTRICT 10 WAS 87 PERCENT NO.

AND I DID GET THE STATISTICS FROM DISTRICT 6 AND 9.

64 PERCENT NO IN DISTRICT 9.

85 PERCENT NO, FROM DISTRICT 6.

SO, THERE'S A LOT OF ISSUES WITH THAT OLD BUILDING.

AND I'M ALL FOR KEEPING OUR HISTORICAL PLACES HERE IN SAN ANTONIO.

I THINK MY VOTING RECORDS SHOWS THAT.

BUT WE DIDN'T GO WITH THIS LARGE OF A PROJECT AND THIS STATURE OF A PROJECT TO OUR NEIGHBORS OUT THERE TO GET THEIR OPINIONS, AND WHETHER THEY WANT TO SPEND THAT KIND OF MONEY FOR THIS RENOVATION.

THIS BUILDING COULD BE REPURPOSED.

IT DOESN'T HAVE TO BE CITY HALL.

THERE'S NEW CITY HALLS ALL OVER THE UNITED STATES THAT WE COULD GET FOR CHEAPER THAN RENOVATING THIS BUILDING, COMPLETELY RENOVATING THIS BUILDING, OR, ONE OF THE -- AS ONE OF THE SUGGESTIONS WAS TO MOVE UP INTO THE FROST TOWER.

STAY THERE UNTIL WE GET THROUGH THIS BOND ELECTION, AND LET THE VOTERS DECIDE ON THIS PARTICULAR FACILITY, AND THAT AMOUNT OF MONEY, AND WHERE THEY WANT US TO BE FOR THEM.

SO, I AM NOT AGAINST RENOVATING THIS OLD BUILDING AND PRESERVING OUR HISTORY.

I'M SAYING THAT WE DID NOT GO THROUGH THE PROCESS AND WE STILL HAVE A -- WE STILL HAVE A CAPABILITY TO GO THROUGH THAT PROCESS AND ACTUALLY WAITING FOR THIS NEXT BOND, AND PUTTING IT ON A LARGE CAPITAL IMPROVEMENT BOND THAT OUR NEIGHBORS GET A CHANCE TO VOICE THEIR OPINION, AND GUIDE US DURING THAT COMMITTEE PROCESS, THAT WE SO ELOQUENTLY HANDLED DURING THIS LAST BOND, AND PUT IT OUT THERE AND LET FOLKS KNOW WHAT WE WANT TO DO.

I THINK THAT IF THIS WAS A NEED OUT THERE, THAT THIS SHOULD HAVE BEEN CHAMPIONED BY THE CITY ON THIS LAST BOND AND BROUGHT FORWARD ON THE FACILITIES.

YES, THERE ARE A LOT OF OTHER GREAT FACILITIES, BUT, AGAIN, $850 MILLION.

THERE WAS CERTAINLY ROOM ON THAT BOND FOR THIS PROJECT.

SO, HAVING SAID THAT, SIR, I'D LIKE TO MAKE A MOTION TO DELAY THIS PROJECT UNTIL THE NEXT BOND

[01:50:03]

ELECTION IN, I GUESS IT WOULD BE IN 2022.

THANK YOU, SIR.

>> MAYOR NIRENBERG: THANK YOU COUNCILMAN PERRY.

THERE IS A MOTION, LACKING A SECOND --

>> I'LL SECOND THE MOTION.

>> MAYOR NIRENBERG: COUNCILMAN?

>> I'LL SECOND THE MOTION.

>> MAYOR NIRENBERG: THERE'S A MOTION AND SECOND FOR THE DELAY OF THE ITEM TO DATE UNCERTAIN.

IS THAT A LEGAL MOTION, ANDY? WE DO NOT HAVE ANOTHER BOND MEETING SCHEDULED OR BOND PROGRAM SCHEDULED AT THIS POINT.

>> MAYOR, WE DON'T HAVE ANYTHING SCHEDULED IN TERMS OF ANOTHER BOND ELECTION, SO YOU'LL HAVE TO HAVE A DATE COUNCILMAN, TO --

>> MAYOR NIRENBERG: COUNCILMAN DO YOU WANT TO SELECT A DATE TO REHEAR ITEM NO. 11?

>> PERRY: I WOULD SAY IN THE NEXT BOND ELECTION WOULD PROBABLY BE IN, WHAT, MAY OF 2022? SO, ANY, IN MAY OF 2022.

>> MAYOR NIRENBERG: SO, THERE'S A MOTION AND SECOND FOR DELAY OF ITEM NUMBER 11, FOR FIVE YEARS.

COUNCILMAN PELAEZ?

>> PELAEZ: THANK YOU, MAYOR.

TOTALLY UNRELATED TO THE TWO MOTIONS ON THE FLOOR, I WANT TO FOLLOW UP.

RENE DOMINGUEZ, WHEREVER HE IS, HE ESCAPED.

I THINK IT'S IMPORTANT TO POINT OUT THAT THAT CONVERSATION YOU HAD WITH COUNCILWOMAN SANDOVAL IS REALLY IMPORTANT, AS FAR AS GOAL SETTING, AND THE DIVERSITY OF THAT, RIGHT? MY UNDERSTANDING IS THAT I THINK WE'RE THE ONLY CITY THAT HAS A GOAL-SETTING COMMITTEE LIKE THIS.

IS THAT RIGHT?

>> YES, COUNCILMAN, THAT PROCESS WAS CREATED IN 2010 AND ADOPTED BY COUNCIL IN 2011 AS PART OF A MAJOR HAUL -- MAJOR OVERHAUL AS WE KNOW OF THE SBEDA PROGRAM.

IT INCLUDED A LOT OF ENHANCEMENTS, INCLUDING THIS PROCESS WE TALKED ABOUT WHERE WE LOOK AT SCOPE AND AVAILABILITY.

AND SOON THEREAFTER WORKING WITH THE COMMITTEE THERE WAS DISCUSSIONS ADDING CITIZENS TO THE COMMITTEE WHICH WAS SUBSEQUENTLY ADOPTED.

AS FAR AS OUR RESEARCH GOES AT LEAST BACK THEN, WE WERE THE ONLY CITY TO ALSO, IN TERMS OF TRANSPARENCY AND ENGAGEMENT INCLUDE CITIZENS.

>> PELAEZ: SO, HAVING SEEN A VACANCY ON THAT BOARD RECENTLY COME UP IN 2018, YOU AND I HAD A CONVERSATION, AND A MEETING ABOUT APPOINTING SOMEBODY TO ADD SOME GENDER DIVERSITY TO THAT COMMITTEE.

AND SO, I FLOATED THE NAME AND MOVED TO HAVE A PERSON NAMED LINDA LOPEZ GEORGE BE THE NEW MEMBER OF THAT COMMITTEE.

MY UNDERSTANDING IS THAT SHE'S ALREADY BEEN APPOINTED.

SHE'S ON THE AGENDA, BY THE WAY, FOR APPOINTMENT TO THE CITIZEN BOARD OVERSIGHT COMMITTEE.

REALLY SMART LADY AND I WANT YOU GUYS TO WORK WITH HER.

SHE'S GOT A LOT TO ADD.

THIS IS HER FUNCTION AT THE UT HILL SCIENCE CENTER WHICH IS OVERSEEING THESE BIG CONTRACTS.

AND THEN SHE REALLY DOES BRING AN EYE OF, YOU KNOW, EQUITY, PARTICULAR GENDER EQUITY, BECAUSE SHE WAS THE MAYOR'S APPOINTEE TO THE MAYOR'S COMMISSION ON THE STATUS OF FAIR PAY, AND MAKING SURE THAT WE INCREASE OPPORTUNITIES FOR SAN ANTONIO WOMEN, AND SO, I UNDERSTAND THAT THIS CONTRACT CAME WAY BEFORE SHE WAS EVEN ON THE COMMITTEE, RIGHT?

>> PART OF THE PROCESS, IN ADDITION TO THAT, INCLUDES VETTING OF THESE INDIVIDUALS THROUGH THE WDC WOMAN VIAGRAN'S COMMITTEE.

SO THAT WAS A PROCESS SHE WENT THROUGH.

SHE'S FROM THE HEALTH SCIENCE CENTERS SO THEY DO A LOT OF BUILDING AT THE CENTER, SO SHE'S AN APPROPRIATE MEMBER AND SHE'S BEGUN HER DUTIES.

>> PELAEZ: I WILL TELL YOU, IT IS LAMENTABLE THAT WE HAVE NO WOMEN ON THE LIST THAT COUNCILWOMAN SANDOVAL POINTED OUT.

HINDSIGHT BEING 2020, GOSH, I REALLY WISH WE HAD IT.

BUT, I HAVE -- THAT DOESN'T NECESSARILY IMPACT THE SMARTS OF THE PLAN THAT'S IN FRONT OF US, AND THE MERITS OF RENOVATING CITY HALL AND THE FROST BANK TOWER ISSUES, AND SO, I'M NOT GOING TO LET THE PERFECT BE THE ENEMY OF THE GOOD BUT I'M HAPPY WE'RE GETTING CLOSER TO PERFECT EACH DAY IT HAPPENS.

I THINK LINDA'S EDITION TO THIS BOARD WILL CONTRIBUTE TO THAT.

THANK YOU, MAYOR.

[01:55:03]

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PELAEZ, COUNCILMAN BROCKHOUSE?

>> BROCKHOUSE: THANK YOU, MAYOR.

COUNCILMAN PERRY TOOK ALL MY QUESTIONS.

SO I DON'T HAVE ANY QUESTIONS TO ASK YOU, BUT I JUST WANTED TO -- THAT, ALL OF THAT CLEARING THAT DAVILA IS DOING, THAT WAS IN PREPARATION, SITE WORK PREPARATION, FOR THIS VOTE TODAY?

>> SO THERE'S TWO THINGS THAT ARE GOING ON OVER THERE.

DAVILA IS PART OF THE CREEK PROJECT, WITH THE COUNTY.

THEY'VE BEEN WORKING IN THAT PARKING LOT AREA BEFORE NOW.

BUT WE DID HAVE THEM START OVER THERE DOING THE PREP FOR THIS PROJECT, AND THAT WAS TO EXECUTE IN TIME FOR THE MOVE IN THE JULY TIME FRAME.

>> BROCKHOUSE: AND WE'VE BEEN SPENDING -- HOW MUCH MONEY WAS SPENT IN PREP WORK BEFORE THE VOTE?

>> IT'S A LITTLE BIT UNDER $100,000 FOR DAVILA TO GO IN AND DO THAT CONTRACTOR WORK.

>> BROCKHOUSE: PROCEDURALLY, WOULDN'T YOU WAIT UNTIL IT WAS ACTUALLY APPROVED OR ARE YOU THINKING AHEAD, THIS THING'S A DONE DEAL, SO WE'RE --

>> SO, THIS ONE, BASED O.J. THE "B" SESSION COMPREHENSIVE DISCUSSION THERE, AND AT THE END OF THAT, WE DISCUSSED WE'RE GOING TO PROGRESS THIS PROJECT.

THAT WAS THE UNDERSTANDING THERE THAT WE ARE GOING TO PROGRESS THIS PROJECT.

NOT THAT WE HAD U THAN MOUSE SUPPORT BUT THERE'S STRONG SUPPORT TO MOVE FORWARD AND WORKING THROUGH THE HIGH PROFILE PROCESS TO MAKE SURE WE VOLUMED ALL OF THOSE PROCEDURES AND THEN TO HIT THAT TIME FRAME AGAIN, WE KNOW THAT MOVING IS NO FUN, AND ESPECIALLY WHEN YOU'RE ACTIVE IN SESSION, AND SO FORTH, SO, WE WANTED TO HIT THAT WINDOW.

SO, THAT'S WHY WE NEEDED TO START.

>> BROCKHOUSE: A LITTLE AHEAD OF IT THERE JUST TO PREPARE? I GOT IT.

I WAS JUST CURIOUS, YOU KNOW, VOTE WASN'T HAPPENING.

WE'RE SPENDING MONEY ON IT.

IT MAY BE ONLY UNDER 100 GRAND BUT POSSIBLY I WOULD THINK A LITTLE FURTHER ABOUT WAITING UNTIL COUNCIL MAKES AN ACTUAL DECISION.

YOU NEVER KNOW, I WOULD -- I THINK COUNCIL MADE A TON OF VALID POINTS, AND YOU KNOW, INITIALLY I THINK -- AND I DO BELIEVE IN RENOVATING CITY HALL.

THAT'S NOT -- I -- I THINK THE BUILDING NEEDS IT.

I THINK IT'S AN HISTORIC BUILDING.

I THINK IT MAKES A LOT OF SENSE FOR A LOT OF REASONS.

I'M GOING TO OBVIOUSLY SUPPORT COUNCILMAN PERRY ON BOTH HIS MOTION AND ULTIMATELY VOTING AGAINST THIS BECAUSE IT WOULD BE IN THE BEST INTEREST.

I THINK IT SHOULD HAVE BEEN A BOND ITEM.

THIS PLACE WAS IN THIS CONDITION WHEN I WAS ON STAFF TEN YEARS AGO.

THE USE OF CERTIFICATES OF OBLIGATION TO ME IS A WORRISOME ITEM AND I WANT TO MAKE SURE I'M VERY CLEAR ON THE RECORD ABOUT -- SO THE BIT CITIZENS UNDERSTAND LARGE DEBT INSTRUMENTS LIKE THAT THAT DON'T GO FOR A PUBLIC VOTE OR SHOULD SCARE THEM AND IF WE WOULD HAVE INCLUDED THIS IN THE BOND WHICH I DON'T UNDERSTAND WHY IT WOULDN'T HAVE BEEN IN THE BOND OTHER THAN THE CITIZENS SAID NO, WHICH IS INTERESTING, IF IT'S IN THE POND, IT WOULD HAVE BEEN ONE OF THE LARGEST BOND ITEMS OR ONE OF THE LARGEST BOND ITEMS WE WERE WORKING ON, IF NOT TOP TWO OR THREE.

SO, I THINK WE UTILIZE THESE AND DRAW DOWN THIS ADDITIONAL DEBT AND DO THESE THINGS WITHOUT A PUBLIC VOTE AND THAT'S WORRISOME TO ME.

SO I'M OPPOSED TO IT ON THE FUNDING MECHANISM ITSELF AND THE WAY WE NEED TO GO ABOUT ENSURING THAT -- IF WE'RE GOING TO SPEND TENS OF MILLIONS OF DOLLARS, IT COULD BE PUBLIC SAFETY HEADQUARTERS.

I GET IT.

SOME LARGE TICKET ITEMS WARRANT A PUBLIC VOTE AND THE BOND IS A PERFECT EXAMPLE.

IT'S WELL EXECUTED AND EVERYBODY KNOWS WHAT THEY ARE GETTING WHEN THEY PUNCH THOSE AND YOU HANG THAT WHOLE THING EXCEPTIONALLY WELL.

IT SHOULD HAVE BEEN A BOND PROJECT.

THAT $40 MILLION COULD BE UTILIZED IN MULTIPLE OTHER AREAS OF THE CITY, LET'S SAY IF WE DECIDED.

IF THE MONEY WAS AVAILABLE.

I GUESS YOU CAN PUT IT IN STREETS, SIDEWALKS A BUNCH OF OTHER THINGS.

I THINK THE COUNCILMAN IS COMPLETELY ON POINT THAT MY AREA, I MEAN, I HAVE VERY LITTLE SUPPORT TO DO IT AND THE PEOPLE I TALKED TO AND WE DID A SURVEY ON IT, TOO.

HIGHLY UNSCIENTIFIC.

DON'T GET ME WRONG.

ANYTHING CALLED SURVEY MONKEY IS NOT LILY THAT SCIENTIFIC.

I'LL CONCEDE THAT.

A LOT OF FEEDBACK WAS MORE DEBT MORE DEBT AND PAYING MORE AND MORE AND WHY DIDN'T WE GET A CHANCE TO VOTE ON IT.

THAT'S THE BIGGEST CONCERNS I HAVE ON IT.

WOULD I PREFER POSTPONING IT TO THE NEXT BOND.

I'LL SUPPORT THAT AND AFTER WE LOSE THAT 2-9, I THINK I'LL VOTE ON VOTING ON CONTROLLING OUR TAX DOLLARS.

I HAVE BEEN CONSISTENT ON WE NEED TO BE MORE OPEN ON LETTING

[02:00:02]

CITIZENS VOTE ON THESE ITEMS ESPECIALLY BIG TICKET DOLLARS.

THAT'S MORE FOR BEN, I WOULD THINK, ABOUT USING C OF OS AND OUR ABILITY TO CIRCUMVENT INPUT.

I THINK I GOT A REAL PROBLEM WITH THAT.

I'M APPRECIATIVE THE BUILDING NEEDS WORK.

I'VE SEEN IT FOR YEARS.

YOU'VE DONE GOOD WORK TO BE DILIGENT ON THE PREPARATION.

I HAVE NO DOUBT IT WILL BE A WELL-RUN PROJECT, BECAUSE THAT'S CONSISTENTLY WHAT TCI DOES AND YOUR TEAM DOES.

IT WILL BY A FANTASTICALLY RUN PROJECT, I'M SURE IT WILL BE ON TIME AND ON BUDGET.

I APPRECIATE THE WORK YOU'RE DOING AND MAKE SURE I GOT MY POINTS IN THERE AND SUPPORT COUNCILMAN PERRY IN BOTH OF HIS COMMENTS TODAY.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN BROCKHOUSE.

COUNCILWOMAN SANDOVAL

>> SANDOVAL: THANK YOU FOR LETTING ME TAP IN A SECOND TIME.

I HAVE ADDITIONAL COMES AND MY STAFF REMINDED ME I'M ENTIRELY SUPPORTIVE OF ESTABLISHING AN EXCESSABLE ENTRY FOR ALL.

YOU DOESN'T JUST WALK BEHIND THE BUILDING YOU HAVE TO WALK AROUND THE BLOCK BECAUSE OF WAIT IT'S LAID OUT.

I THINK THAT'S EXTREMELY BORN.

AND I WANT TO THANK THE COUNCILMAN FOR CONDUCTING THAT CONTEST AND ENGAGING THE COMMUNITY.

WE TALK ABOUT NEEDING COMMUNITY INPUT FOR THIS AND THAT'S CLEARLY SOMETHING THE COMMUNITY WANTED AND I DON'T THINK THEY WANT TO WAIT FOR THAT.

SO, THANK YOU VERY MUCH COUNCILMAN AND THANK YOU, MAYOR THAT'S THE END OF MY COMMENTS.

>> MAYOR NIRENBERG: THANK YOU, SKWOM SANDOVAL.

SK SKWOM /* SKWOOM PERRY?

>> PERRY: SINCE THIS IS THE WORK THAT'S ALREADY STARTED OUT

>> FROM "B" SESSION THROUGH HIGH PROFILE AND EVEN HAVING SOME ONE-ON-ONES WITH A SENSE FOR WHERE WE ARE ON THIS PROJECT, SO WE KNEW THERE WAS STRONG SUPPORT.

WE KNEW THERE WAS ALSO OPPOSITION, BUT, AGAIN, TO TAKE THAT STEP, WE SAY, OKAY, WE NEED TO TAKE THIS STEP IF WE'RE GOING TO HIT THAT WINDOW, WE BELIEVE IT IS GOING TO BE SUCCESSFUL.

WE'RE GOING TO TAKE THAT STEP.

IF IT WAS NOT APPROVED TODAY, THEN WE'D HAVE TO, OBVIOUSLY CLOSE THAT UP AND SETTLE THAT WITH DAVILA.

BUT THAT'S, YOU KNOW, BASED ON WHERE WE WERE AT EVEN WITH ONE-ON-ONE DISCUSSIONS WE FELT CONFIDENT THIS WAS GOING TO GO THROUGH.

>> PERRY: I WOULD CAUTION IN DOING THAT IN THE FUTURE, ON STARTING A PROJECT BEFORE YOU EVEN HAVE CITY COUNCIL APPROVAL.

CAUTION STRONGLY AGAINST THAT.

I JUST WANT TO SAY THAT THIS, TO ME, IS NOT A LAUGHING MATTER.

THIS IS TALKING ABOUT OUR NEIGHBORS IN THIS COMMUNITY AND THE MONEY THAT THEY ARE PAYING TAXES EVERY DAY ON, THAT I WANT TO MAKE SURE THAT WE ARE SPENDING IT THE CORRECT PATIENT AND THEY WANT TO MAKE SURE THAT WE'RE SPENDING THEIR MONEY IN A CORRECT WAY, AND TO ME, THIS WAS NOT THE CORRECT WAY.

IT SHOULD HAVE GONE THROUGH THE BOND ELECTION PROCESS.

SO, THAT, SIR, THAT'S ALL OF MY COMMENTS.

THANK YOU.

>>> THANK YOU, COUNCILMAN PERRY.

>> I JUST WANT TO ADD, COUNCIL DID PROVIDE STAFF AUTHORITY TO EXECUTE CONTRACTS THROUGH THE JOB ORDER CONTRACT WITH DAVILA THAT WAS APPROVED BY COUNCIL IN JUNE OF 2017 AND WE CAN DO A CONTRACT UP TO $100,000.

>> MAYOR NIRENBERG: OKAY.

THANK YOU, LORI.

WE HAVE A MOTION AND A SECOND.

AND BEFORE WE GET TO THAT.

I WANT TO MAKE A COUPLE BRIEF COMMENTS BEFORE WE GET TO THAT.

THIS IS A BUILDING THAT IS A HISTORIC BUILDING.

IT DOES NOT BELONG TO THIS CITY COUNCIL.

IT'S BELONGEDS TO THE PUBLIC OF SAN ANTONIO.

THAT'S ENJOYED FOR THE LAST 25 YEARS.

IT IS SEAT OF GOVERNMENT IN THE CITY OF SAN ANTONIO.

WE HAVE A RESPONSIBILITY TO PROTECT AND PRESERVE THAT HISTORIC SITE AND I'M GLAD WE'RE TAKING ACTION TO DO SO.

I SAY IN THE PROCESS I HAVE TO TIP MY HAD TO COUNCILMAN TREVINO WHO MADE ACCESSIBILITY MAKING CITY HALL THE PLACE FOR ALL PEOPLE A PRIORITY WHICH WE'LL ALSO DO IN THIS PROCESS.

I WANT TO CORRECT INFORMATION.

CITIZENS DID NOT SAY NO TO THIS PROJECT.

THIS WAS NOT A BOND CERTIFICATIONS IN THE FIRST PLACE.

WHEN YOU TALK TO PEOPLE ABOUT

[02:05:02]

CITY HALL THEY WANT TO BE REMINDED THIS IS A PLACE THAT BELONGS TO THEM.

USING OUR AUTHORITY AS REPRESENTATIVE GOVERNMENT NOT GOVERNMENT THROUGH SNAPCHAT, WE ARE MAKING THEIR CONCERNS A PRIORITY FOR THIS CITY.

I'M GLAD WE'RE MOVING ON.

WE HAVE TWO MOTIONS.

FIRST IS A MOTION FOR DELAY OF THIS ITEM FOR FIVE YEARS.

MOTION BY WOMAN PERRY, SECOND BY COUNCILMAN BRAC HOUSE BROCK HOU IS TO DELAY THIS ITEM FOR FIVE YEARS.

PLEASE VOTE.

MOTION FAILS.

>> MAYOR NIRENBERG: PRIMARY MOTION IS MOTION FOR APPROVAL OF ITEM NUMBER 11.

[13. Ordinance approving the acquisition through condemnation ofapproximately 19.882 acres along Maverick Creek near Babcock Road between UTSA Boulevard and Hausman Road for the LinearCreekway Parks Development Project, a 2015 Proposition 2 Sales Tax Initiative funded project; declaring the Maverick Creek Greenway Trail to be a public project for public use; and declaring public necessity for the acquisition of privately owned real property. [María Villagómez, Assistant City Manager; Xavier D. Urrutia, Director, Parks and Recreation]]

PLEASE VOTE.

ALL RIGHT.

ITEM NUMBER 13.

>> ITEM NUMBER 13 IS ORDINANCE APROFRG THE ACQUISITION THROUGH CONDEMNATION OF APPROXIMATELY 19.882 ACRES ALONG MAVERICK CREEK NEAR BABCOCK ROAD BETWEEN UTSA BOULEVARD HAND HUSMAN ROAD FOR THE LINEAR CREEKWAY PARKS DEVELOPMENT PROJECT, A 2015 PROPOSITION TO SALES TAX INITIATIVE DECLARING THE MAVERICK CREEK GREENWAY TRAIL TO BE PUBLIC PROJECT FOR PUBLIC USE AND DECLARING THE PUBLIC NECESSARIES IITY FOR THE ACQUISITION OF PRIVATELY OWNED REAL PROPERTY.

COUNCILMAN PELAEZ.

>> PELAEZ: THANK YOU, MAYOR PRO TEM.

I MOVE THAT THE CITY AUTHORIZE THE USE OF THE POWER OF EMINENT DOMAIN TO ACQUIRE PROPERTY FOR THE PUBLIC USE PROJECT FOR THE LINEAR CREEKWAY PARKS DEVELOPMENT PROJECT BY ACQUIRING THE FOLLOWING PROPERTY DESCRIBED BY THE CITY CLERK AND INCORPORATED AS PART OF THIS MOTION.

>> THE PROPERTY CONSISTS OF 19.888 AKERS IN NEW CITY BLOCKS LOCATED ALONG MAVERICK CREEK AND DEPICTED IN THE SITE PLAN AND MAP MARKED AS EXHIBIT "A" ATTACHED TO THE ORDINANCE, AND INCOOPERATED AS PART THIS MOTION.

>> WE HAVE A MOTION -- I'M SORRY, COUNCILMAN COURAGE?

>> COURAGE: THANK YOU.

I HAVE A QUESTION.

WHAT STEPS WERE TAKEN PRIOR TO COMING TO COUNCIL AND ASKING THEM TO CONDEMN THIS PROPERTY? WHY ARE WE AT THE POINT OF CONDEMNATION AND NOT NEGOTIATING AND COMING TO AN AGREEMENT WITH THE PROPERTY OWNERS?

>> SO, COUNCILMAN, THIS IS A FRIENDLY CONDEMNATION.

IT IS SUPPORTED BY THE HOA.

THE ISSUE DEALS TWOFOLD.

ONE IS THEIR BY LAWS REQUIRE A 66.7 PERCENT APPROVAL OF ALL PROPERTY OWNERS, NOT JUST TO VOTE.

ALL PROPERTY OWNERS WOULD BE REQUIRED TO VOTE.

THEY HAVE DIFFICULTY GETTING ALL PROPERTY OWNERS TO VOTE, ONE.

SECOND PIECE IS, MOST OF THEM ARE NOT OWNER-OCCUPIED HOMES.

THIS IS NEAR UTSA.

SO WE HAVE A LOT OF OWNERS WHO DO NOT LIVE IN THE ACTUAL PROPERTIES AND THIS IS A -- ACTUALLY A CONDEMNATION OF HOA-OWNED FLOODPLAIN THAT'S ALONG THE CREEKWAY FOR THE CREEKWAY SYSTEM, SO THE HOA FELT, AND EVERYONE, WE AGREED.

THEIR ATTORNEYS, THAT THIS IS THE BEST WAY TO HAVE THE CLEAREST TITLE FOR THE PROPERTY, AND THEREFORE THE CITIES ASSURE WE CAN BUILD THE TRAIL AND THERE'S NO POSSIBILITY THAT SOMEONE COULD COME OUT OF THE WOOD WORK YEARS FROM NOW AND SAY, NO, THE PROPERTY NEEDS TO BE CONVERTED BACK TO THE HOMEOWNERS.

>> COURAGE: OKAY.

THAT SOUNDS REASONABLE TO ME.

THANK YOU.

>> WE HAVE A MOTION AND A SECOND.

PLEASE VOTE.

MOTION CARRIES.

[24. Ordinance approving Advanced Funding Agreements with the Texas Department of Transportation to rebuild seven traffic signals as part of the Highway Safety Improvements Program in the total amount of $198,679.00 payable to TxDOT and accepting $1,634,900.00 in HSIP infrastructure. [Peter Zanoni, Deputy City Manager; Mike Frisbie, Director, Transportation & Capital Improvements]]

ITEM NUMBER 24.

>> ITEM NUMBER 24 IS AN ORDINANCE APPROVING ADVANCED FUNDING AGREEMENTS WITH THE TEXAS DEPARTMENT OF TRANSPORTATION TO REBUILD SEVEN TRAFFIC SIGNALS AS PART OF THE HIGHWAY SAFETY IMPROVEMENTS

[02:10:01]

PROGRAM IN THE TOTAL AMOUNT OF 1 $198,679 PAYABLE TO TXDOT AND ACCEPTING $1,634,900 IN HSIP INFRAST INFRASTRUCTURE.

>> THANK YOU.

IS THERE A PRESENTATION?

>> YES, I DO HAVE A BRIEF PRESENTATION.

>> OKAY.

GO AHEAD.

>> SO, THIS ITEM BEFORE YOU ALL IS AN APPROVAL FOR AGREEMENT WITH TXDOT ON 7 ADVANCED FUNDING AGREEMENTS FOR SEVEN DIFFERENT TRAFFIC SIGNAL LOCATES.

THIS IS THROUGH THE STATE'S HIGHWAY SAFETY IMPROVEMENT PROGRAM.

THE WAY THE PROGRAM WORKS, ANNUALLY TXDOT WILL GO THROUGH A PROCESS AND SELECT PROJECTS ELIGIBLE FOR THIS PROGRAM.

BASED ON OUR KNOWLEDGE OF THE SYSTEM WE PUT FORWARD RECOMMENDATIONS ON DIFFERENT TRAFFIC SIGNAL LOCATIONS THAT HAVE EITHER FATALITIES OR SEVERE CRASHES.

ONCE WE DETERMINE THOSE LOCATIONS WE COMMIT THE ELIGIBLE PROJECTS FORWARD TO TXDOT WHICH HAS A STANDARD SCORING SYSTEM THAT LOOKS AT SEVERITY OF CRASH AND TYPE AND IMPROVEMENTS NECESSARY TO BE INSTALLED IN THOSE COSTS AND ANNUALLY THEY SELECT PROJECTS.

THE SIGNALS BEFORE YOU TODAY FOR APPROVAL ARE SEVERAL DIFFERENT LOCATIONS.

THOSE CORRESPOND TO THE CALL FOR PROJECT YEARS OF 2015, 2016 AND 2017 BASED ON TEXT DOT'S PR PROJECTED ADVERTISEMENT DATE OF FISCAL YEAR 19.

THAT'S WERE SELECTED THROUGH ALL OF THOSE YEARS AND YOU CAN SEE THE LIST ON THE SCREEN ACROSS MANY DIFFERENT COUNCIL DISTRICTS.

AN EXAMPLE PROJECT IS THIS INTERSECTION HERE AT PLEASANTON ROAD AND FORMOSA BOULEVARD.

THIS IS TYPICAL OF ALL SEVEN SIGNAL LOCATIONS.

THIS IS ALL OLDER SIGNALS WITH TYPICAL WOODEN POLES AND SPAN WIRE.

THESE ARE PRONE TO MAINTENANCE PROBLEMS DURING STORMS. VERY WINDY CONDITIONS WITH THE EXPOSED WIRES AND THINGS LIKE THAT.

THEY ARE TYPICAL TO HAVE MAINTENANCE PROBLEMS. THAT'S THE REASON FOR PUTTING THESE FORWARD.

THE TYPES OF INFRASTRUCTURE INSTALLED ARE CONVERTED TO THE NEW SIGNALS THAT YOU SEE THAT ARE MORE MODERN WHERE ALL COMPONENTS ARE PROTECTED BY THE ELEMENTS.

ALSO INCLUDED WOULD BE ADVANCED DETECTION.

THE BEST DETECTION WE HAVE RIGHT NOW IS RADAR-BASED.

THAT HELPS WITH TRAFFIC FLOW AS WELL.

ALSO IN THESE PRODUCTS WILL BE AUDIBLE SIGNALS FOR PEDESTRIANS.

WE'LL INSTALL MONITORING CAMERAS TO GIVE US REMOTE CAPABILITIES TO MONITOR WHAT IS GOING ON AT THOSE INTERSECTIONS.

THE SO, THE TOTAL FUNDING BEING PROPOSED FROM THE CITY IS ABOUT -- IS NEARLY $199,000.

THAT CORRESPONDS TO 10 PERCENT OF CONSTRUCTION COST.

THE WAY THE PROGRAM WORKS, LOCAL MUNICIPALS REQUIRE FOR 10 PERCENT OF CONSTRUCTION PLUS DEVELOPMENT COST WHICH IS DESIGN AND ENVIRONMENT RIGHT-OF-WAY NEEDS.

WE PUT TOGETHER THE MONEY TO LEVERAGE HALF MILLION OF STATE AND FEDERAL FUNDING.

THE PROJECT AGAIN IS BASED ON TXDOT'S FISCAL YEAR.

THESE ARE SCHEDULED TO ADVERTISE FOR CONSTRUCTION FISCAL YEAR '19 SO IT WOULD START FALL OF 2019 AND LAST APPROXIMATELY ONE YEAR TO BUILD.

>> THANK YOU, ART.

I PULLED THIS ONE, JUST FOR INFORMATION, AND PURPOSES, GIVEN -- ABOUT A MILLION AND A HALF, 1.6 MILLION FOR HIGHWAY SAFETY IMPROVEMENTS.

AND THESE WERE SELECTED SO THERE'S SIX PROJECT LOCATIONS.

THEY WERE SELECTED BASED ON THE HIGH RATE OF INJURIES, OR COLLISIONS IN THAT -- IN THOSE INTERSECTIONS.

>> WHAT WE DO, WE HAVE CRASH DATA, AS CRASHES OCCUR.

WE GET THAT DATA, AND THE WAY THIS PROGRAM WORKS, IS THE BELGABLE LOCATIONS ARE THOSE INTERSECTIONS THAT HAVE HAD EITHER A FATAL OR SEVERE CRASH, SO BASED ON THOSE AREAS, AND WHAT WE KNOW ABOUT THIS -- THE STANDARD SCORING SYSTEM, WE PUT FORWARD THOSE PROJECTS FOR SCORING AND TXDOT, THROUGH THEIR ENTIRE DISTRICT SELECTS THE TOP RANKING PROJECTS SO OVER THE COURSE OF THREE YEARS THEY'VE SELECTED SEVEN PROJECTS ON CITY STREETS.

NOW THERE'S ALSO, I BELIEVE, 12 OTHER PROJECTS ON TXDOT FACILITIES WITHIN THE SAN ANTONIO AREA THAT THEY ARE GOING THROUGH REBUILDING BUT SINCE THESE ARE ON CITY STREETS, WE ARE REQUIRED TO PARTICIPATE.

>> AND HIGHWAY SAFETY PACKAGE THAT TXDOT PRESENTED, I KNOW WE'VE DISCUSSED IT IN MPO.

IT'S IN THE MANY MILLIONS.

ISN'T IT?

>> THIS IS PART OF THE OVERALL STATE PROGRAM.

THIS IS JUST ONE COMPONENT OF THAT.

>> DO YOU REMEMBER HOW MUCH THAT TOTAL --

>> I DON'T.

>> I CAN'T RECALL.

I DON'T KNOW IF ANYBODY ON THE MPO CAN RECALL BUT ANYWAY, IT WASP MILLIONS.

SO, I WOULD HOPE THAT GIVEN SAN

[02:15:02]

ANTONIO'S LARGE -- THAT OUR LARGE MUNICIPAL, AND THAT WE COVER, WE ARE THE MAJORITY OF MPO, THAT THAT -- THE MAJORITY OF THAT FUNDING WOULD COME TO SAN ANTONIO.

SO I'M GLAD TO SEE THAT WE'RE AT MAKING THESE IMPROVEMENTS, AND ESPECIALLY IN HIGH COLLISION AREAS, AND JUST LOOK FORWARD TO SEEING THOSE.

AND I'M ALSO CONCERNED ABOUT WHY SO LONG.

WHY ARE WE APPROVING IT TODAY FOR CONSTRUCTION THAT WILL START MORE THAN A YEAR FROM NOW?

>> SO, WE'RE APPROVING THE PROCESS TO GO FORWARD WITH ADVANCED FUNDING AGREEMENTS.

ONCE THOSE ARE APPROVED THEN THE DESIGN WILL START, AND AS A TYPICAL CAPITAL PROJECT, YOU GO THROUGH A DESIGN PROCESS, THERE COULD POTENTIALLY BE RIGHT-OF-WAY REQUIRED AT THE CORNERS, UTILITY RELOCATIONS AND THINGS LIKE THAT.

THIS IS TIMED FOR WHEN TXDOT HAS THE MONEY PROGRAMMED IN THEIR TEN YEAR PLAN WHICH IS NEXT FISCAL YEAR.

>> OKAY.

SO WE HAVE TO DO IT THIS EARLY TO GET -- JUST SEEMS LIKE A VERY LONG TIME.

>> AGAIN, IT TAKES SEVERAL MONTHS TO GO THROUGH THE DESIGN AND THEN IF THERE ARE UTILITY RELOCATIONS THAT'S A COUPLE MONTHS.

SO IT DOES TAKE SOME LEAD TIME.

>> OKAY.

ALL RIGHT.

WELL, THANK YOU.

WE HAVE -- COUNCILMAN, DID YOU HAVE QUESTIONS?

>> THANK YOU, MAYOR.

SO, WILL WE BE -- WILL THE CITY BE DOING THE CONSTRUCTING THESE OR ARE WE GOING TO BE --

>> TXDOT WILL BE CONSTRUCTING THESE ON BEHALF OF THE CITY.

SO WE'LL BE LEADING THE DESIGN EFFORTS AS WELL AS THAT PROCESS, BUT TXDOT WILL DO THE CONSTRUCTION.

>> VIAGRAN: AND WILL THESE GEE GOING CONCURRENTLY OR JUST IN DIFFERENT TIMES WHENEVER THEY CAN?

>> SO THE DESIGNS WILL BE STARTED CON CURRENTLY.

I GUESS IT'S TO BE DETERMINED BASED ON IF THEY ARE IN PACKAGES OR NOT.

>> VIAGRAN: THANK YOU VERY MUCH.

FINALLY YOU MENTIONED THE OTHER LOCATIONS.

YOU SAID 17 OR 11 OTHER LOCATIONS THAT TXDOT IS DOING?

>> THERE'S 12 OTHER LOCATIONS.

I DON'T HAVE A LIST IN FRONT OF ME.

>> VIAGRAN: COULD YOU SEND THOSE TO OUR OFFICES, PLEASE.

ALL RIGHT.

THANK YOU VERY MUCH.

WITH THAT, I MAKE A MOTION TO APPROVE.

>> SECOND.

>> WE HAVE MOTION AND SECOND.

COUNCILMAN COURAGE?

>> COURAGE: THANK YOU, MADAM MAYOR.

ONE OF THE INTERSECTIONS THAT WE'VE BEEN CONCERNED ABOUT DISTRICT 9 HAD A FATALITY IN IT NOT TOO LONG AGO.

I THINK YOU KNOW THAT'S BLANCO AND LOCK HILL SELMA.

IS THAT CONSIDERED A CITY STREET THAT TXDOT WOULD BE INVOLVED IN OR IS THAT A SEPARATE TXDOT PROJECT LIKE THESE OTHER 12? IS THIS GOING TO BE IN THAT MIX SOMEWHERE? DO YOU KNOW?

>> IT'S IN THE MIX AND WE PLAN TO SUBMIT THAT PROJECT FOR THE CALL THAT WILL BE ANNOUNCED I THINK IN THE JUNE TIME FRAME NOR THIS YEAR.

THAT WOULD BE CONSIDERED ONE OF THE OTHER 12 THAT TXDOT WOULD PUT FORWARD BECAUSE IT'S ON THEIR SYSTEM.

THE LOCATIONS HERE ARE COMPLETELY OFF THE TXDOT SYSTEM BUT THROUGH THEIR PROGRAM THEY STILL PROVIDE THIS OPPORTUNITY.

>> COURAGE: SO THERE'S A POSSIBILITY THEY COULD BE ONE OF THE ONES THEY CHOOSE TO DO SOMETHING ABOUT SOONER RATHER THAN WAITING YEARS DOWN THE LINE?

>> THAT'S CORRECT.

WE'LL SUBMIT IT FOR THE CALL THAT'S COMING UP.

>> COURAGE: OKAY.

THANK YOU VERY MUCH.

>> VIAGRAN: WE HAVE A MOTION AND SECOND.

PLEASE VOTE.

OKAY.

MOTION CARRIES.

[25. Ordinance approving a Funding Agreement with United States Automobile Association and accepting $49,500.00 for the primary sponsorship of the San Antonio Safest Driver Contest, a citywide campaign to educate and encourage drivers on safe driving behaviors as part of Vision Zero. [Peter Zanoni, Deputy City Manager; Mike Frisbie, Director, Transportation & Capital Improvements]]

ITEM NUMBER 26 -- I'M SORRY.

25.

>> YES, MAYOR.

ITEM NUMBER 25 IS AN ORDINANCE APPROVING A FUNDING AGREEMENT WITH THE UNITED STATES AUTOMOBILE ASSOCIATION AND ACCEPTING $49,500 FOR THE PRIMARY SPONSORSHIP OF THE SAN ANTONIO SAFEST DRIVER CONTEST, A CITYWIDE CAMPAIGN TO EDUCATE AND ENCOURAGE DRIVERS ON SAFE DRIVING BEHAVIORS AS PART OF VISION ZERO.

>> COUNCILMAN SALDANA

>> SALDANA: THANK YOU.

THIS IS GREAT FOR THE COMMUNITY TO INITIAL EDUCATE THE CITY AS WE LEARN VISION ZERO AND SEEING STATISTICS WE KNOW IT WORSE.

EDUCATION AND ENCOURSE, ENGINEERING AND ENFORCEMENT AND EVALUATION, WE'RE HAPPY TO GREAT VISITORS WITH US FROM USAA WHO ARE MAKING THIS A POSSIBILITY WITHOUT ANY CITY FUNDING TO ALLOW THIS CONTEST TO GO FORWARD AND TO SAN ANTONIANS WHO WILL ENROLL IN THIS PROGRAM, WHOSE DRIVING HABITS WILL BE TRACKED AND THEY GET TO SCORE AMONGST OTHER SAN ANTONIANS WHO ARE PART OF THE PROGRAM, THERE'S REAL MONEY INVOLVED IN THIS.

I THINK THERE'S A $10,000 PRIZE FOR THE SAFEST DRIVER IN SAN ANTONIO AND A FEW OTHER SMALLER PRIZES THAT I THINK ART'S GOING TO WALK US THROUGH IN THIS

[02:20:01]

PRESENTATION AND TELL US EXACTLY HOW THIS WORKS.

IF WE'RE GOING TO SIGN UP, WE WANT TO KNOW WHAT WE'RE BEING SCORED ON.

ART?

>> I HAVE A BRIEF PRESENTATION AND WE DO HAVE SOME TEAMMATES FROM USAA, THEY WANTED TO COME TO LEARN ABOUT CITY HALL, BUT I'M GLAD THEY'RE HERE AS WELL.

BUT ALSO INVITE RANDY TO COME UP AND SAY A FEW WOFFORDS.

WITH THE RECOMMEND -- THES WE ARE ASKING YOU TO ACCEPT MANAGEMENT OF FUNDING OF THE CONTEST AND I'LL WORK THROUGH HOW THIS WORKS ON THE NEXT SLIDE.

AS MENTIONED BEFORE WE'RE DOING THIS THROUGH VISION ZERO INITIATIVE WHICH, AS WE'VE BRIEFED THE COUNCIL MANY TIMES WE TAKE A FIVE-YEAR APPROACH ON VISION ZERO, LOOKING AT EDUCATION, ENCOURAGEMENT.

ENGINEERING, ENFORCEMENT AND EVALUATION AND THIS CONTEST HITS THE FIRST TWO "E"S.

EDUCATION COMPONENT THROUGH THE APPLICATION, DRIVERS WILL BE ABLE TO IDENTIFY THEIR UNSAFE BEHAVIORS AND LEARN FROM THAT AS WELL AS ENCOURAGEMENT THROUGH THE CONTEST.

WE'RE REALLY EXCITED ABOUT THIS OPPORTUNITY.

THE WAY THE APP WORKS, IT'S CURRENTLY BEING DEVELOPED AND A COUPLE OF US HAVE A TEST VERSION ON IT TO FINE TUNE IT, SO, IT WILL TRACK YOUR DRIVING BEHAVIOR.

YOU'LL DOWNLOAD THE APPLICATION ONE TIME AND IT WILL AUTOMATICALLY RUN IN THE BACKGROUND.

IT WILL USE SENSORS IN YOUR PHONE.

ANALYZE AND COLLECT DATA.

BASED ON THAT DATA, IT WILL PROVIDE FEEDBACK AND GIVE YOU DIFFERENT SCORES ON YOUR DRIVING HABITS.

ULTIMATELY WE'LL GET THAT INFORMATION AT THE END FROM THE CONCERT.

SO, THE CONTEST ITSELF WILL START JUST ABOUT A MONTH FROM TODAY.

JUNE 11TH THROUGH SEPTEMBER 3RD.

GEARING UP TOWARDS THAT, WE'RE WORKING ON COMMUNICATIONS PLAN AND WORKING WITH THE MAYOR ON A PRESS CONFERENCE ON JUNE 4TH TO LAUNCH MORE DETAILS.

BUT, AGAIN, JUNE 11TH THROUGH SEPTEMBER 3RD.

IT WILL BE A 12-WEEK CONTEST.

HERE'S WHERE IT GETS GREAT.

SO, IN ADDITION TO SPONSORING THE CONTEST IN COVERING THOSE COSTS.

USAA IS ALSO PROVIDING THE FUNDING NEEDED FOR THE PRIZES.

SO, IT'S REAL MONEY.

SO, THE CITY OF BOSTON AND SEATTLE HAVE LAUNCHED IN CONTEST, BUT THEIR PRIZES WERE NOT AS GREAT.

HOPEFULLY THEY ARE NOT LISTENING.

BUT WE'RE REALLY EXCITED ABOUT THIS.

THERE WILL BE THREE GRAND PRIZE WINNERS AT THE END OF THE CONTEST.

EACH OF THOSE WILL BE $10,000.

ONE GRAND PRIZE WILL BE FOR THE OVERALL SAFEST DRIVER.

ONE FOR THE LEAST DISTRACTED DRIVER AND MILITARY DRIVER.

THAT'S WHAT IS GREAT ABOUT THIS, BEING MILITARY USA, THERE WILL BE A SPECIAL CATEGORY.

IF YOU DOWNLOAD THE APP THEY ASK IF YOU'RE A MEMBER OF SERVICES AND WHAT BRANCH.

BESIDE GRAND PRIZES THERE'S BIWEEKLY PRIZES THAT FOLKS WILL BE ELIGIBLE AND SAME THREE CATEGORY, TOP THREE SCORERS SO A TOTAL OF 54 OF THOSE PRIZES AT $500 EACH.

THAT'S BASED ON YOUR SCORE.

IN ADDITION TO THAT.

JUST FROM DOWNLOADING THE APP YOU'LL BE ELIGIBLE FOR RANDOM DRAWING.

THE GRAND PRIZE IS $2,000 AND BIWEEKLY, THERE WILL BE RANDOM DRAWINGS AS WELL FOR HAVING THE APP DOWNLOADED OF $150.

I'M REALLY THANKFUL FOR USAA FOR PARTNERING WITH US ON THIS.

A COUPLE VISUALS FROM THE APPLICATION.

WHEN YOU DOWNLOAD -- I'LL WORK FROM LEFT TO RIGHT.

WHEN YOU DOWNLOAD THE APPLICATION YOU CREATE A PROFILE.

THE ONLY DATA YOU ENTER IS NAME, E-MAIL ADDRESS AND ZIP CODE.

ALL DATA COLLECTED WILL BE ANONOMIZED AND WE WON'T HAVE THE ACCESS TO INDIVIDUAL USER DATA.

WE'LL GET DATA ON THE END BASED ON THE SCORES, AS WELL AS TOP TEN LOCATIONS FOR DIFFERENT HABITS AND I'LL TALK ABOUT THAT IN A MINUTE.

THEN THERE'S A LEADERBOARD SO YOU CAN INVITE YOUR FRIENDS.

YOU CAN INVITE THEM TO HAVE A COMPETITION AMONG YOUR FRIENDS BUT THEN ALL A ALSO SEE WHERE YOU RANK AMONG THE CITY AS THE CONTEST IS PROGRESSING.

YOU CAN ALSO EARN DIFFERENT BADGES FOR ACHIEVEMENTS.

SO IF YOU TAKE OTHER MOETDS OF TRANSPORTATION AFTER A CERTAIN NUMBER OF TRIPS YOU CAN GET AN ACHIEVEMENT FOR THAT OR IT GIVES ACHIEVEMENTS FOR DIFFERENT HABITS.

RIGHT NOW I HAVE AN ACHIEVEMENT FOR NO HARD BRAKING FOR 15 TRIPS.

AND LASTLY YOU'LL GET INFORMATION ON ANY UNSAFE BEHAVIOR.

YOU CAN GO INTO EACH ONE OF YOUR TRIPS AND IT WILL SHOW YOU IF YOU WERE SPEEDING OR WHAT NOT AND IT WILL GIVE YOU FEEDBACK.

BESIDES THE CONTEST AND PROMOTING DRIVER SAFETY.

THERE'S REAL SCIENCE BEHIND THIS.

BASED ON THE RESULTS, YOU CAN SEE HERE FROM BOSTON AND SEATTLE.

ON YOUR TOP USERS THEY SAW ANYWHERE FROM 30 TO 50 PERCENT REDUCTION IN UNSAFE BEHAVIORS.

DISTRACTED DRIVING CAN INCREASE LIKELIHOOD OF CRASHES BY ALMOST TWICE.

SO, THESE ARE VERY UNSAFE BEHAVIORS AND REALLY HAPPY THAT THERE ARE RESULTS BEHIND IT, BESIDES THE FRIENDLY COMP

[02:25:02]

COMPETITION.

AT THE END OF THE CONTEST, WE'LL ACTUALLY GET DATA BACK.

WE'LL GET A REPORT BACK FROM THE DEVELOPER ON THIS, AND WE'LL BE ABLE TO IDENTIFY WHERE ARE WE HAVING HOT SPOTS OF ACTIVITY.

WHERE IS SPEEDING OCCURRING, MAYBE THERE'S INFRASTRUCTURE CHANGES WE CAN MAKE SUCH AS SPEED FEEDBACK SIGNS THAT WE PUT OUT IN LOCATIONS, OR WHERE ARE WE SEEING FOLKED DISTRACTED, MAKING PICKING UP THEIR PHONE, LASTLY WE CAN SEE WHERE ARE THE DIFFERENT TRIPS.

HOW ARE THEY TAKING TRIP MODES? WE MAY SEE A LOT OF PEOPLE WALKING IN A CERTAIN AREA AND REALIZE THERE'S A GAP IN OUR SIDEWALK NETWORK THAT WE CAN DO INFRASTRUCTURE IMPROVEMENTS ON.

WE'RE INTERESTED TO SEE WHAT KIND OF DATA WE GET BACK AND WHAT WE CAN DO WITH THAT.

HERE BEFORE YOU IS THE ORDINANCE.

WE REQUEST APPROVAL TO RECEIVE $49,500,000 FROM THE USAA FOR DEVELOPING AND MANAGEMENT OF THE CONTEST.

THERE'S TO DIRECT COST TO THE CITY AS A RESULT OF THIS CONTEST.

WITH THAT, WE'LL OPEN IT UP FOR QUESTIONS BUT BEFORE THAT I WANTED TO INVITE RANDY, THE SENIOR VICE PRESIDENT OF USAA AND MANAGER OF THE AUTO GROUP AND I WOULD LIKE TO ALLOW HIM A COUPLE OF MACHINES TO SPEAK.

>> THANK YOU.

GOOD MORNING, EVERYONE.

COUNCILMAN SALDANA, THANK YOU FOR THE OPENING COMMENTS AND THANK YOU FOR THE OPPORTUNITY TO DO THIS IN OUR GREAT CITY.

THIS IS REALLY AN HONOR FOR USAA TO BE ABLE TO DO THIS IN OUR HOME TOWN.

ON OUR 300TH BIRTHDAY TO BRING THIS TYPE OF COMPETITION, THIS TYPE OF REAL INNOVATION, IS SO CRITICAL TO OUR MISSION AT USAA.

THIS HAS BEEN OUR HISTORY FOR A LONG TIME AT USAA.

WHETHER IT'S BEEN AIR BAG, CHILD SAFETY SEATS, LEGISLATION AROUND DRUNK DRIVING.

THIS IS GOING TO CONTINUE TO BE CRITICAL TO USAA.

THAT'S WHY WE'RE SO HONORED AND PROUD TO BE DOING THIS HERE IN SAN ANTONIO.

YOU KNOW, I THINK THAT BRINGING THIS, AFTER SEEING THIS IN A FEW CITIES AND DOING IT IN A BIGGER WAY HERE IS REALLY GOING TO BE A SPLASH FOR THE COMMUNITY.

WE'RE SUPER EAGER TO PARTICIPATE IN THIS.

AND I'D SAY WHAT I REALLY LOVE ABOUT THIS MORE THAN ANYTHING IS THE COLLECTIVE ONE TEAM APPROACH THAT WE'VE HAD TO THIS UP TO THIS POINT.

IT'S BEEN A GREAT PARTNERSHIP WITH THE CITY, WITH USAA AND WITH THE TECHNOLOGY TO BRING JUST A ONE TEAM APPROACH WHICH IS WHAT WE LOVE.

SO, I'M HONORED TO BE HERE WITH YOU TODAY AND HONORED TO REPRESENT THIS, AND BRING THIS FORWARD FOR THE CITY.

THANK YOU.

>> THANK YOU TO THE FOLKS FROM USAA.

THIS IS ONE OF THOSE ANCILLARY BENEFITS YOU GET FROM HAVING HEAD QUARTERS OF A LARGE AND VERY CITIZEN-DRINK AND CORPORATE PARTNER THAT WE HAVE AT USAA.

BECAUSE THIS IS ONE OF THE LARGEST ROLLOUTS OF A PROGRAM LIKE THIS.

HERE'S WHAT WE'RE DOING.

GOOD NEWS, WE'RE GOING TO GRADE SAN ANTONIO DRIVERS.

BAD NEWS IS WE'RE GOING TO GRADE SAN ANTONIO DRIVERS AND WE'RE GOING TO LEARN A LOT ABOUT US.

AND I THINK THAT'S GOING TO BE MORE THAN JUST RESIDENTS WHO CALL US AND SAY THERE'S A LOST TRAFFIC INCIDENTS AT THIS SPECIFIC INTERSECTION.

IT'S ANECDOTAL EXPERIENCE OF WHAT I BELIEVE IS AN AREA THAT'S A HOT SPOT.

THAT'S GOING TO BE BACKED UP BY DATA.

THIS IS OPT-IN SERVICE.

YOU WON'T GET 100 PERCENT OF FOLKS TO ENROLL IN THE PROGRAM.

NEVER NEVERTHELESS, I THINK IT WILL TEACH US A GREAT DEAL AND OVERRIDING APPROACH, I THINK THE STATISTIC I READ, IN TEXAS THERE'S THREE VEHICLE RELATED DEATHS A WEEK AND THINKING OF LIVES SAVED AS A RESULT OF HAVING BETTER DRIVERS BEHIND THE WHEEL IS THE DRIVING FORCE BEHIND THIS.

WE'RE EXCITED TO SEE THIS.

THE OTHEER BIT OF BAD NEWS CITY COUNCIL IS NOT ELIGIBLE FOR THE $10,000 GRAND PRIZE, UNFORTUNATELY.

BUT WE CAN HAVE AN INTERNAL COMPETITION AMONGST THE TEN OF US TO FIND OUT WHICH OF THE COUNCIL IS THE BETTER DRIVERS.

WITH THAT, I'M LOOKING FORWARD TO GETTING TO SEE.

I DON'T KNOW HOW COUNCILMAN PERRY WILL BEHAVE BEHIND US.

WE LOVE HIS CORVETTE.

WE MIGHT HAVE A GOOD DEFICIT TO ROLL ON.

THANK YOU, MAYOR.

I MAKE A MOTION TO APPROVE.

>> SECOND.

12346789 ZBL COUNCILMAN PELAEZ.

>> PELAEZ: THANK YOU.

I WANT TO TAKE THE OPPORTUNITY.

FIRST OF ALL NO HARD BRAKING REINHART IS WHAT WE CALL YOU BEHIND YOUR BACK.

YOU'RE PROVING OUT THAT'S AN UNDESERVED NICKNAME IS COMMENDABLE.

USAA AND INNOVATION ARE NOW SYNONYMOUS WORDS.

AND I INVITE MY CITY COUNCIL TO GO TALK TO EMILY CHRISTI, WHO IS IN THE CROWD, AND ASK HER ABOUT THE INVASION LABS THAT THEY'VE CREATED ON THEIR CAMPUS.

IT'S AN ENTIRE PROGRAM STAFFED BY VERY, VERY SMART PEOPLE DEDICATED TO JUST COMING UP WITH NEW IDEAS.

AND PILOTING NEW TECHNOLOGY AND

[02:30:02]

NEW WAYS OF DOING THINGS.

REALLY INSPIRATIONAL WORK THAT YOU GUYS ARE DOING OUT THERE, ALL DRIVEN TO MAKING SURE THAT THEIR MEMBERS AND THE GENERAL PUBLIC ARE IN A BETTER PLACE, AND BEEN FIT FROM EVERYBODY'S IDEAS.

I DO WANT TO POINT OUT THAT, THE MOST BASIC WAY A CITIZEN CAN BE ENGAGED WITH OUR COMMUNITY IS BY FOLLOWING THE RULES IN THEIR COMMUNITY, AND NOT PUTTING THEIR FELLOW MEMBERS AT RISK OF GETTING KILLED ON THE ROAD.

THE OTHER WAY THAT PEOPLE CAN GET ENGAGED IN THEIR COMMUNITY IS BY HELPING US GET PROJECTS LIKE THIS OFF THE GROUND AND SPREADING THE WORD.

SO, ART, WHAT ARE YOU GUYS GOING TO DO TO HELP US HERE UP ON THE DAIS SPREAD THE WORD TO OUR COMMUNITY MEMBERS, RIGHT, OUR NEIGHBORHOODS? I'D LIKE MATERIALS, SO THAT WE CAN, YOU KNOW, PUBLISH THIS.

AND, YOU KNOW WHO IS REALLY GOOD AT GETTING THE WORD OUT TO PEOPLE IS USAA.

AND SO ONE OF THE MOST INNOVATIVE HUMAN BEINGS I KNOW IS EMILY CHRISTI AND MAYBE WE CAN WORK WITH HER AND COME UP WITH IDEAS HOW WE CAN LEVERAGE THEIR RESOURCES ALSO.

>> REALLY, FOR THE LAST SIX MONTHS WE HAVE HAD WEEKLY MEETINGS PREPARING FOR THE CONTEST AS WELL AS STARTING A COMMUNICATIONS PLAN.

SO IS COMMUNICATIONS PLAN IS BEING DEVELOPED NOW BUT A LOT OF THE OUTREACH WILL START THE WEEK BEFORE THE CONTEST, ONCE THE APPLICATION IS AVAILABLE TO BE DOWNLOADED.

THERE IS A WEBSITE AVAILABLE.

SASAFESTDRIVER.COM.

IT HAS A COUNTDOWN TIMER.

THERE'S 32 DAYS UNTIL THE CONTEST.

MORE INFORMATION WILL BE LOADED UP ON THAT.

IT WILL HAVE COMPLETE INSTRUCTIONS ON THE CONTEST AS WELL.

CERTAINLY, AS WE GET CLOSER, WE WILL BE REACHING OUT TO YOU ALL.

EACH OF YOU HAVE NEWSLETTERS TO PUT OUT THE WORD.

THERE'S THAT PIECE.

WE'RE ALSO LOOKING AT THINGS LIKE ADVERTISING ON BILLBOARDS AND OTHER WAYS TO GET THE WORD OUT.

I THINK MOST FOLKS WILL KNOW ABOUT IT.

>> PELAEZ: AN IDEA IS MAYBE RECRUITING VIA.

I WOULD LOVE TO SEE SAFEST DRIVERS ADVERTISING ON THOSE BUSES AS OPPOSED TO WRONGFUL DEATH LAWYER ADVERTISEMENT ON THOSE BUSES.

THAT WOULD BE A REAL PLEASANT CHANGE.

>> WE'RE GETTING READY TO START VISION ZERO ADVERTISEMENT ON THE BUSES AS WELL.

>> PELAEZ: GREAT.

THANK YOU, MAYOR.

>> GONZALES: THANK YOU, COUNCILMAN PELAEZ.

COUNCILMAN COURAGE.

>> COURAGE: YES.

ANOTHER QUESTION OR TWO.

IS THERE A WAY TO TRACK AGGRESSIVE DRIVING? BECAUSE I THINK WE'RE FINDING THIS IS ANOTHER MAJOR CONSIDERATION.

CAN THIS HELP US IDENTIFY THAT?

>> SO THE APPLICATION, IT TRACKS A HANDFUL OF CHARACTERISTICS.

NOW A LOT OF THOSE COMBINED TOGETHER ARE AGGRESSIVE BEHAVIORS.

BUT IT WILL TRACK YOUR FAST ACCELERATION, HARD BRAKING.

SOME OF THAT IS AGGRESSIVE BEHAVIOR, AS WELL AS SHARP CORNERING, PHONE DISTRACTION, AS WELL AS SPEEDING.

>> COURAGE: SHARP CORNERING.

LIKE LANE CHANGING?

>> YEAH.

IF FOR SOME REASON YOU HAVE TO SWERVE AROUND A VEHICLE.

>> COURAGE: HOW ABOUT NOT USING TURN SIGNALS?

>> THE IT WON'T TRACK THAT.

IT'S SAVED ON YOUR PHONE SO IT TRACKS THE MOVEMENT OF YOUR PHONE.

IT'S NOT LIKE SOME OF THE DEVICES THAT YOU PLUG IN AND CAN READ YOUR COMPUTER SYSTEM.

>> COURAGE: I NOTICED THE TIME-FRAME OF IT.

AN INTEREST I HAVE AS A FORMER TEACHER IS YOU'RE REALLY ONLY LOOKING AT TRACKING PEOPLE'S DRIVING HABITS MAYBE THE FIRST TEN DAYS OF SCHOOL.

AND I'M WONDERING IF IT SHOULDN'T BE EXTENDED A LITTLE BIT FURTHER SO THAT WE CAN SEE WHAT IS THE ACTUAL DRIVING HABIT ONCE YOU ARE INTO MORE OR LESS THE NORMAL WORK YEAR, AS OPPOSED TO A LOT OF THIS IS DURING THE SUMMER.

TRAFFIC DRIVING IS A LOT DIFFERENT FOR MOST OF US IN THE SUMMER THAN IT IS DURING A NORMAL WORK YEAR WHEN WE'RE DROPPING KIDS OFF, TAKING THEM TO DIFFERENT THINGS.

I'M WONDERING IF IT COULD BE EXTENDED A COUPLE OF ADDITIONAL WEEKS TO SEE IF THERE'S A DIFFERENCE BETWEEN SUMMER DRIVING AND SCHOOL-TIME DRIVING.

>> SO YOU'RE RIGHT.

THERE IS A DIFFERENCE IN DRIVING BEHAVIORS.

THAT'S ONE OF THE REASONS WE DON'T REALLY TAKE A LOT OF TRAFFIC COUNT DATA DURING THE SUMMER.

I WILL SAY WE PICKED THIS TIME-FRAME BECAUSE IT REPRESENTS WHAT'S CALLED A 100 DEADLIEST DAYS OF SUMMER, BASED ON THE AAA FINDINGS.

THEY SEE AN INCREASE IN AUTO FATALITIES IN THIS PERIOD.

SO THERE IS A REASON FOR THAT TIME-FRAME.

THAT'S BASICALLY THE TIME BETWEEN MEMORIAL DAY AND LABOR DAY.

WE HAVE TALKED ABOUT DOING THIS IN OTHER YEARS AND WE COULD SEE HOW THAT COMPARES BASED ON THE TIME-FRAME.

>> COURAGE: OKAY.

AND THE LAST THING IS IS THERE ANY WAY I CAN TRACK MY WIFE'S

[02:35:03]

DRIVING?

>> SO I MENTIONED ON THE DATA WE DON'T GET INDIVIDUAL DATA.

BUT I WILL SAY IN BOSTON -- I CAN'T REMEMBER HER LAST NAME, BUT KERRY IN BOSTON.

SHE HAD A GREAT QUOTE THAT SAID THIS APP FINALLY ALLOWED HER TO PROVE TO HER HUSBAND THAT SHE WAS A BETTER DRIVER.

[LAUGHTER]

>> COURAGE: THANK YOU.

>> GONZALES: COUNCILMAN PERRY.

>> PERRY: YES, THANK YOU, MA'AM.

FIRST OF ALL, THANK YOU VERY MUCH, USAA, FOR PARTNERING AND FUNDING THIS OPPORTUNITY HERE FOR US.

SO THANK YOU VERY MUCH FROM MYSELF, AS A LONG-TIME USER OF USAA, I REALLY APPRECIATE WHAT Y'ALL DO ON A DAY-TO-DAY BASIS AND WITH COMING UP WITH THIS PARTICULAR APPLICATION.

ART, AND WE TALKED ABOUT IT A LITTLE BIT WHEN Y'ALL CAME AROUND.

IN TODAY'S CYBER WORLD THERE'S LOTS OF CONCERNS ABOUT, YOU KNOW, SHARING INFORMATION AND INFORMATION GETTING IN THE WRONG HANDS.

CAN YOU TALK A LITTLE BIT ABOUT THAT, WHAT PROTECTIONS ARE GOING TO BE FOR THIS.

BECAUSE YOU ARE INCLUDING E-MAIL ADDRESSES AND NAMES.

>> THAT'S CORRECT.

BEFORE I ANSWER THAT, I WANT TO SECOND YOUR APPRECIATION FOR USAA.

BESIDES THE FUNDING, WHICH IS HUGE, THEIR TEAM THAT THEY HAVE BROUGHT FORWARD IS TOPNOTCH WITH THE RESOURCES THEY HAVE, THE PROFESSIONALISM AND DEDICATION TO THEM.

IT'S BEEN GREAT WORKING WITH THEM.

I SECOND THAT.

AS FAR AS THE DATA GOES, YOU ENTER YOUR E-MAIL ADDRESS, NAME, AND ZIP CODE.

THE DATA THAT IS PROVIDED IS ENCRYPTED WITH THE APP DEVELOPER.

AND THERE ARE CONFIDENTIALITY AGREEMENTS WITH THE CONTRACTS THAT WE HAVE, SO THEY ARE NOT TO SHARE THAT DATA UNLESS IT IS REQUIRED TO MAKE THE APP WORK.

BUT IT'S NOT ANY MORE PERSONAL DATA THAN THAT.

PHONE NUMBERS OR ADDRESSES, THINGS LIKE THAT.

AGAIN, IT'S A VOLUNTARY PARTICIPATION.

BUT THE DATA WE WILL GET ON THE BACK END WILL JUST TELL US HOT SPOTS, THINGS LIKE THAT.

NOW THERE WILL BE SPECIFIC USER DATA TO SEE WHO THE TOP SCORER IS.

THAT WILL BE A REPORT WE GET BIWEEKLY FROM THE APP DEVELOPER.

BUT WE WON'T BE ABLE TO TRACK COUNCILMAN COURAGE, YOU KNOW, AS HE IS GOING TO EAT OR ANYTHING LIKE THAT.

OR FOR THE RUN AFTER A SESSION.

[LAUGHTER]

>> PERRY: EVERYBODY KNOWS WHAT KIND OF DRIVER YOU ARE THERE, SIR.

GREAT.

THAT WAS MY QUESTION.

THANK YOU, ART.

AND THANKS AGAIN TO USAA.

>> GONZALES: THANK YOU, COUNCILMAN PERRY.

COUNCILWOMAN VIAGRAN.

>> VIAGRAN: THANK YOU, MAYOR.

THANK YOU, ART REINHART, FOR THE PRESENTATION.

I DO, FIRST AND FOREMOST, THANK YOU USAA FOR THE WORK THAT YOU HAVE DONE FOR DECADES HERE IN SAN ANTONIO AND THE TREMENDOUS PARTNERSHIP THAT YOU GIVE ON ALL DIFFERENT AREAS.

SO THANK YOU FOR THIS.

AND YOU DO PUT YOUR MONEY WHERE YOUR MOUTH IS BECAUSE YOU ARE COMMITTED TO SAFETY AND OUR DRIVERS AND YOUR MEMBERS AND THE ENTIRE CITY.

SO THANK YOU VERY MUCH FOR DOING THIS.

AND YOUR TEAM FOR COMING UP WITH THIS, THE INGENUITY HERE THAT WE HAVE.

ALTHOUGH COUNCIL MEMBERS CAN'T GET THE PRIZES, MY QUESTION IS IS THERE ANY WAY THAT AS WE ENCOURAGE ALL OF OUR RESIDENTS IN THE ENTIRE CITY AND AS WE ENCOURAGE CERTAIN COUNCIL DISTRICTS THAT WE CAN SEE WHICH COUNCIL DISTRICTS -- JUST THE COUNCIL DISTRICTS -- HAVE THE MOST PARTICIPANTS.

AND WHICH COUNCIL DISTRICT HAS THE SAFEST DRIVER?

>> SO AS FAR AS SEEING THE MOST PARTICIPANTS WE SHOULD BE ABLE TO BREAK THAT OUT BY THE ZIP CODE AND GET A DATA REPORT.

ONE THING I DIDN'T MENTION IS THIS IS SAN ANTONIO'S SAFEST DRIVER, BUT THE ELIGIBLE AREA TO PARTICIPATE IS OUR ENTIRE MPO BOUNDARY.

THAT INCLUDES BEXAR, GUADALUPE, COMAL, AND A PORTION OF KENDALL THAT IS BOERNE.

WE WANT TO GET OUR COMMUTERS AS WELL.

TO WIN THE PRIZE, MOST OF THOSE TRIPS NEED TO OCCUR WITHIN BEXAR COUNTY, BUT WE WANT TO BE ABLE TO CAPTURE THE PEOPLE AUDIO].

AS FAR AS THE COUNCIL MEMBER GOES AS WELL AS CITY EMPLOYEES, WHAT WE'LL ENCOURAGE IS TO REGISTER WITH YOUR SAN ANTONIO E-MAIL AND WE CAN GET A REPORT FROM THE DEVELOPER ON THOSE SCORES.

AND THEN WE CAN PARSE OUT THE DATA TO TRULY SEE WHO IS THE SAFEST COUNCIL MEMBER.

>> VIAGRAN: OKAY.

THANK YOU, ART REINHART.

THANK YOU.

>> YOU CAN'T GET A NEGATIVE, IF THAT'S WHAT YOU'RE ASKING.

>> GONZALES: COUNCILWOMAN SANDOVAL.

>> SANDOVAL: THANK YOU VERY MUCH, MAYOR PRO TEM.

ALSO I WOULD LIKE TO ECHO THE COMMENTS OF MY COLLEAGUES.

I REALLY WANT TO GIVE A THANK YOU TO USAA, NOT ONLY FOR PUTTING FORWARD THE FUNDING FOR YOUR INNOVATION FOR YOUR LONG-TIME PARTNERSHIP HERE, BUT FOR HAVING THE PATIENCE TO SIT THROUGH THAT CITY HALL RENOVATION DISCUSSION.

I APOLOGIZE.

WE SHOULD HAVE PULLED YOU FORWARD.

THANK YOU VERY MUCH FOR BEING HERE.

SECONDLY, I REALLY WANT TO THANK

[02:40:02]

ART AND THE WHOLE TEAM MOVING FORWARD ON THIS.

YOU HAVE HAD A LOT OF DILIGENCE.

THANK YOU.

YOU HAVE KEPT YOUR EYE ON THE PRIZE.

AND THE PRIZE IS MAKING THE STREETS OF SAN ANTONIO SAFE.

AND THIS IS ONE OF THE WAYS WE DO THAT.

I ALSO WANT TO COMMEND COUNCILWOMAN GONZALES FOR INITIALLY BEGINNING THE PROJECT ZERO EFFORT.

BECAUSE I THINK THIS REALLY FALLS UNDER THAT LARGE UMBRELLA.

SO THANK YOU FOR PIONEERING THAT AND BRINGING IT HERE.

AND TO COUNCILMAN SALDANA FOR HIS LEADERSHIP ON THE TRANSPORTATION COMMITTEE.

AS I WAS TALKING TO SOME OF YOUR REPRESENTATIVES FROM USAA THIS MORNING I MENTIONED THAT SOMETHING I HEAR A LOT FROM MY CONSTITUENTS IS THAT THEY DON'T FEEL SAFE WALKING ON THE STREET IN SAN ANTONIO.

NOT BECAUSE SOMEONE IS GOING TO HOLD THEM UP BUT BECAUSE THEY MIGHT GET HIT BY A VEHICLE.

SO ADVOCATING FOR SAFE DRIVING, I THINK, IS A WAY TO HELP EVERYONE GET WHAT THEY WANT, AT LEAST IN DISTRICT 7.

I WOULD LIKE TO ASK IF THERE IS GOING TO BE A TARGET FOR HOW MANY, YOU HOW MANY, YOU KNOW, DRIVERS WE'LL HAVE PARTICIPATING IN THIS.

DO YOU HAVE A SENSE?

>> SEATTLE AND BOSTON EACH HAD ABOUT 5,000 PARTICIPANTS.

WE'RE HOPING THAT WITH THE PROMOTIONS AND THE PRIZES THAT WE'RE GOING TO FAR EXCEED THAT.

I MEAN, KIND OF OUR GOAL IS TWO TO THREE TIMES THAT AMOUNT.

SO IF WE CAN GET 15,000 PEOPLE TO DOWNLOAD IT, THAT'S 15,000 PEOPLE THAT WILL HAVE LEARNED ABOUT VISION ZERO AND WHAT IT MEANS.

AND THE SECOND PART IS BEING ELIGIBLE FOR THE CONTEST TO WIN.

SO THAT'S KIND OF WHAT WE'RE SHOOTING FOR.

>> SANDOVAL: OKAY.

GREAT.

AND IS THERE A BUDGET FOR PROMOTING THE EFFORT?

>> AGAIN, SO WE'RE WORKING ON THAT RIGHT NOW, PARTNERING WITH USAA ON THAT AS WELL.

THEY ARE REALLY HELPING OUT WITH ALL THAT.

SO WE'RE FINALIZING THOSE COSTS AND EXACTLY WHAT WE'RE GOING TO DO.

>> SANDOVAL: AGAIN, YOU NEED A CELL PHONE THAT'S WITH YOU IN ORDER TO PARTICIPATE, RIGHT?

>> RIGHT.

YOU DO NEED A SMARTPHONE TO BE ABLE TO DOWNLOAD THAT TECHNOLOGY.

ONCE YOU INSTALL IT IT AUTOMATICALLY RUNS IN THE BACKGROUND.

>> SANDOVAL: OKAY.

I THINK LIKE THE COUNCILWOMAN SAID, EVEN IF WE CAN'T COMPETE EXACTLY BY DISTRICTS, BECAUSE WE WON'T KNOW WHEN WE'RE IN ZIP CODES, IF THAT'S ALL THE DATA WE HAVE, WE HAVE OVERLAPPING ZIP CODES.

I WOULD LIKE TO CHALLENGE EACH OF MY COUNCIL MEMBERS TO, WHEN THE TIME COMES, TO GO AHEAD AND DOWNLOAD THE APP AND LET'S HAVE A COMPETITION.

I THINK I WILL FIND A PRIZE -- LET'S THINK ABOUT A PRIZE.

>> I'LL TAKE YOU GUYS TO LUNCH.

>> SANDOVAL: THANK YOU.

SO THAT'S US.

BUT I GUESS I WOULD LIKE TO ASK SOME OF THE CITY STAFF OR MAYBE THE CITY MANAGER WHAT WE CAN DO TO ENCOURAGE CITY EMPLOYEES TO PARTICIPATE IN THIS, ESPECIALLY CITY EMPLOYEES WHO HAVE A DEDICATED VEHICLE OR USE A FLEET VEHICLE WITH THE CITY.

>> SCULLEY: WE WILL CERTAINLY TALK WITH THEM AND ENCOURAGE THEM TO SIGN UP ON THE APPLICATION.

WE HAVE A GOAL SET BY OUR RISK MANAGER TO HAVE ZERO VEHICULAR ACCIDENTS AMONG OUR FLEET.

AND SO THIS IS ANOTHER TOOL THAT WILL HELP US ACCOMPLISH THAT GOAL.

SO WE'LL CERTAINLY TALK WITH OUR OWN EMPLOYEES THAT HAVE AND USE CITY VEHICLES EACH AND EVERY DAY.

>> AS AN EXAMPLE, I'LL JUST ADD.

INTERNALLY FOR TCI WHAT WE'RE PROPOSING ARE THREE PRIZES.

MIKE IS A FANTASTIC BARBECUER.

HE'S GOING TO COOK FOR TEN PEOPLE.

BILL MILLER.

ALSO WE'RE LOOKING AT POTENTIALLY FOUR HOURS OF DISCRETIONARY LEAVE.

AND, LASTLY, SOME KIND OF TROPHY.

IT COULD BE A RUSTY TOILET SEAT BUT SOMETHING TO SHARE.

THAT'S KIND OF HOW WE'RE GOING TO DO IT.

MAYBE OTHER DEPARTMENTS WILL DO THE SAME.

>> SANDOVAL: WELL, THANK YOU.

I WOULD LOVE TO SEE SOMETHING LIKE THAT THROUGHOUT THE CITY TO ENCOURAGE OUR EMPLOYEES TO PARTICIPATE.

AND, LASTLY, I THINK THIS IS REALLY GOING TO HELP US MAKE SOME PROGRESS IN TERMS OF SAFE DRIVING HERE.

IT REALLY EMPOWERS PEOPLE TO HAVE THE INFORMATION THEY NEED TO BECOME A SAFE DRIVER.

SO THANK YOU AGAIN FOR YOUR INNOVATION AND YOUR WILLINGNESS TO PUT YOUR DOLLARS BEHIND THAT.

AND FOR LETTING US BE YOUR PARTNER IN THAT.

THANK YOU.

>> GONZALES: GREAT, THANK YOU.

I'LL JUST END WITH I THINK EVERYBODY ASKED MOST OF THE QUESTIONS, BUT I DO HAVE ONE QUESTION ABOUT VEHICLE MILES TRAVELED.

SO IS THERE GOING TO BE ANY -- BECAUSE, YOU KNOW, I CAN ASSURE ALL OF MY COLLEAGUES THAT I WILL WIN BECAUSE I DON'T DRIVE THAT MUCH.

SO WHAT IS -- IS THERE ANY CONSIDERATION FOR THAT?

>> SO THERE ARE CERTAIN ACHIEVEMENTS WITHIN THE APP THAT YOU CAN GET FOR TAKING OTHER MODES OF TRANSPORTATION.

THE PRIZES ARE GEARED TOWARDS DRIVING.

IT'S PART OF THE SAFEST DRIVER

[02:45:02]

CONTEST.

PARTLY BECAUSE, AS YOU KNOW, 80% OF OUR FOLKS COMMUTE ALONE TO WORK, SO DRIVING IS A BIG ELEMENT IN SAN ANTONIO.

BUT THE MILES TRAVELED COMES INTO PLAY.

IF THERE'S A TIE, THE TIE BREAKER WOULD BE WHO HAS THE MOST MILES WITH THAT HIGHEST SCORE.

>> GONZALES: OKAY.

SO YOU WOULD HAVE TO TRAVEL THE MOST, NOT THE LEAST, IN ORDER TO WIN THE PRIZE.

$10,000 IS A LOT.

I WOULD HOPE THAT -- I MEAN, I DON'T KNOW HOW IT WILL PLAY OUT BUT I SUSPECT THAT WE WILL HAVE A LOT OF PEOPLE PARTICIPATING BECAUSE IN ALL THE CONTESTS THAT I HAVE HEARD OF -- I HAVEN'T BEEN INVOLVED WITH VERY MANY, BUT I HAVE NEVER HEARD OF ANYTHING LIKE THAT.

WHEN IT WAS BEING PRESENTED TO ME I KEPT ASKING FOR MORE EXPLANATION.

I THOUGHT HOW COULD YOU POSSIBLY GIVE THREE $10,000 PRIZES JUST FOR GOING ABOUT YOUR BUSINESS? WE'RE NOT EVEN REALLY ASKING ANYBODY TO DO ANYTHING SPECIAL.

>> IT'S INCREDIBLE.

WHEN THEY FIRST TOLD US I TRIED TO KEEP MY POKER FACE AND SAY, THAT'S GREAT.

I THINK WHEN WE LEFT THE ROOM WE WERE JUMPING, THAT'S GREAT.

WE'RE REALLY EXCITED ABOUT IT.

>> GONZALES: I'M REALLY EXCITED ABOUT IT TOO AND I KNOW WE'LL WORK ON THE PROMOTION FOR IT OURSELVES.

I LOOK FORWARD TO YOU TAKING ME TO LUNCH, ART, BECAUSE I'M QUITE CERTAIN I'LL WIN THIS COMPETITION.

I ONLY DRIVE TO WORK A MILE AND A HALF TO CITY HALL.

NO DISTANCE REQUIRED.

>> TOP SCORE.

>> GONZALES: WE LOOK FORWARD TO THAT.

THIS IS VERY EXCITING NEWS AND LOOK FORWARD TO SHARING IT.

I JUST WANTED TO POINT OUT THE OTHER CITIES THAT HAVE PARTICIPATED IN A PROJECT LIKE THIS WERE ALSO VISION ZERO CITIES.

I DON'T KNOW IF THAT WAS PART OF THE DEAL OR NOT.

BOSTON AND SEATTLE, BOTH VISION ZERO CITIES, BUT ONLY 20 IN THE COUNTRY, LAST I CHECKED, FOR VISION ZERO CITIES.

>> THAT'S CORRECT.

>> GONZALES: I'M PROUD OF US FOR MAKING THAT A CITYWIDE INITIATIVE.

BEFORE WE TURN IT OVER TO THE CITY MANAGER'S REPORT, WE DO HAVE A POINT OF PERSONAL PRIVILEGE -- I'M SORRY.

WE HAVE A MOTION AND A SECOND.

PLEASE VOTE.

MOTION CARRIES.

NOW TO COUNCILMAN PERRY FOR A POINT OF PERSONAL PRIVILEGE.

>> PERRY: YES, THANK YOU, MA'AM.

TODAY IS A LAST COUNCIL DAY FOR SOMEONE AND I WANTED TO RECOGNIZE THAT PERSON BECAUSE THEY ARE GOING TO BE OFF AND ABOUT LEAVING US.

GERMANY LEACH, RAISE YOUR HAND WHERE EVERYBODY CAN SEE YOU.

HE HAS BEEN A CONSTANT HELP TO US ON THE FORTH FLOOR.

THINGS HAVE RUN VERY, VERY SMOOTHLY.

EVERYTHING FROM EMPLOYEES GETTING PAID ON TIME TO GETTING SPECIAL REQUESTS DONE.

AND HE ALWAYS HAS A SMILE ON HIS FACE.

I JUST WANT TO SAY THANK YOU, GERMANY.

YOU MADE THE TRANSITION FOR ME -- I MEAN, JUST VERY, VERY EASY COMING INTO OFFICE HERE.

AND I WANT TO REALLY THANK YOU FOR ALL THE THINGS THAT YOU HAVE DONE AND REALLY WISH YOU ALL THE LUCK IN THE WORLD UP IN PHILADELPHIA.

AND I KNOW YOU'LL ENJOY IT.

THANKS AGAIN, GERMANY, FOR EVERYTHING YOU HAVE DONE.

[APPLAUSE]

>> GONZALES: COUNCILWOMAN VIAGRAN.

>> VIAGRAN: IS THERE A WAY THAT WE CAN VOTE ON HIM NOT LEAVING RIGHT NOW? CAN WE MAKE A MOTION?

>> SECOND.

>> VIAGRAN: THANK YOU, GERMANY, FOR ALL OF YOUR WORK.

APPRECIATE IT.

>> GONZALES: COUNCILMAN PELAEZ.

>> PELAEZ: GERMANY, YOU'RE GOING TO GO FAR, AND I ADMIRE YOU VERY MUCH.

YOU KNOW, PLEASE, WHEN YOU BECOME VERY RICH AND VERY FAMOUS, CONTRIBUTE TO MY CAMPAIGN.

[LAUGHTER]

>> PELAEZ: YOU HAVE ALWAYS GOT FRIENDS HERE AND YOU HAVE TREATED US VERY, VERY WELL.

THEY SAY THAT YOU JUDGE A MAN BY HIS ENTRANCES AND HIS EXITS.

AND YOUR EXIT IS VERY, VERY CLASSY.

YOU HAVE LEFT US IN A MUCH BETTER PLACE AND YOU HAVE MADE IT VERY EASY TO TRANSITION -- FOR ME TO TRANSITION.

BUT YOU WILL BE SORELY MISSED.

DESPITE ALL THE HORRIBLE THINGS MY STAFF SAYS ABOUT YOU, WE REALLY DO LIKE YOU.

>> GONZALES: COUNCILMAN TREVINO.

>> TREVINO: THANK YOU.

GERMANY, WISH YOU THE BEST.

YOU'RE A CLASS ACT.

WE'RE GOING TO WISH YOU THE BEST AND CERTAINLY WILL MISS YOU.

THANK YOU.

>> GONZALES: COUNCILWOMAN SANDOVAL.

>> SANDOVAL: GERMANY, I WISH YOU THE BEST OF LUCK.

I CAN'T TELL YOU HOW GRATEFUL I AM FOR HOW WELCOMING, HOSPITABLE AND HELPFUL YOU AND CHRIS WERE WHEN I CAME IN AS A NEW COUNCIL MEMBER AND I DIDN'T HAVE AN

[02:50:01]

OFFICE YET BECAUSE OF THE RUNOFF OR WHATEVER THE SITUATION WAS.

AND YOU GUYS FOUND ME A PLACE AND YOU HELPED ME OUT.

I THINK WHAT I APPRECIATE THE MOST ABOUT YOU, GERMANY, IS NOT JUST YOUR PROFESSIONALISM BUT THE FACT THAT YOU LAUGH AT EVERY SINGLE ONE OF MY JOKES.

AND YOU DO IT LIKE SO SINCERELY AND SO GENUINELY.

AND YOU DON'T GET TIRED OF IT.

THEY'RE THE CORNIEST THINGS AND IT JUST MAKES MY DAY EVERY TIME.

SO THANK YOU VERY MUCH.

>> GONZALES: THANK YOU.

GOOD LUCK TO YOU, GERMANY.

[26. City Manager's Report ]

[APPLAUSE] WE WILL MOVE ON TO THE CITY MANAGER'S REPORT.

>> SCULLEY: THANK YOU, MAYOR AND COUNCIL.

AND CONGRATULATIONS AND THANK YOU TO GERMANY.

WE APPRECIATE ALL OF THE GOOD WORK THAT YOU'VE DONE.

YOUR SENSE OF HUMOR AND YOUR SMILE.

THANK YOU.

AND, AS I TOLD YOU WHEN I LEARNED THAT YOU WERE LEAVING, YOU'RE ALWAYS WELCOME TO COME BACK TO THE CITY OF SAN ANTONIO.

KEEP THAT IN MIND.

[APPLAUSE]

>> SCULLEY: MAYOR AND COUNCIL, I JUST WANTED TO SHARE WITH YOU JUST A COUPLE OF THINGS.

I KNOW THE HOUR IS LATE AND LUNCH IS WAITING AND WE ARE RECONVENING AT 1:00 TODAY.

THE SUMMER POOL SEASON AND FREE SWIMMING LESSON THAT WERE AVAILABLE THIS PAST SATURDAY, FOUR OF OUR POOLS OPENED FOR THE EXTENDED SEASON.

AND THAT IS AT FOUR POOLS.

HERITAGE, LADY BIRD JOHNSON, WOODLAWN, AND SOUTH SIDE LIONS PARKS.

AND THE POOLS ARE OPEN FOR LAP SWIM TUESDAYS THROUGH THURSDAYS FROM 7:30 TO 9:30 A.M.

OPEN SWIM IS AVAILABLE TUESDAYS THROUGH THURSDAYS FROM 4:00 P.M.

TO 7:00 P.M. AS WELL AS SATURDAYS AND SUNDAYS FROM 1:00 P.M. TO 7:00 P.M. DURING THE EXTENDED SEASON.

THE FOUR REGIONAL POOLS WILL ALSO BE OPEN THROUGH THE MEMORIAL DAY HOLIDAY WEEKEND, INCLUDING MONDAY, MAY 28TH.

THE REMAINING 19 OUTDOOR POOLS WILL OPEN FOR THE SUMMER SEASON ON JUNE 16TH.

THERE WILL BE NO COST TO PARTICIPANTS TO USE THE POOLS.

AGAIN THIS YEAR OUR PARKS AND RECREATION DEPARTMENT WILL BE OFFERING FREE GROUP SWIMMING LESSONS DURING THE SUMMER OUTDOOR POOL SEASON.

THREE TWO WEEK SESSIONS WILL BE OFFERED AT EACH POOL.

MORNING AND EARRING -- EVENING ARE OFFERED FOR YOUTH STARTING AT AGE 4, AS WELL AS OUR ADULTS.

REGISTRATION FOR THE FREE GROUP SWIMMING LESSONS FOR OUR PUBLIC WILL OPEN SATURDAY, MAY 19TH AND WILL BE AVAILABLE ONLINE OR IN PERSON AT COPERNICUS GARZA COMMUNITY CENTERS AS WELL AS THE SAN ANTONIO NATATORIUM.

PARKS IS PROMOTING THE FREE SWIMMING LESSONS WITH FLIERS IN ENGLISH AND SPANISH, POSTED ONLINE ON THE CITY'S WEBSITE, AS WELL AS ON SOCIAL MEDIA.

ADDITIONALLY, PARKS IS ADVERTISING IN THE SOUTH SIDE REPORTER AND IN SPANISH IN LA PRENSA AND ON UNIVISION.

I'LL SEND YOU SOMETHING IN WRITING SO IF YOU WANTED TO INCORPORATE THIS INFORMATION IN YOUR NEWSLETTERS YOU WILL BE ABLE TO DO THAT.

OF COURSE YOU CAN REGISTER THROUGH OUR PARKS AND RECREATION DEPARTMENT ONLINE AT WWW.SAPARKSANDREC.COM.

SO I'LL SHARE THAT INFO WITH YOU.

SECONDLY, JUST WANTED TO REPORT THAT EACH YEAR WE WORK TO INCREASE THE AMOUNT OF RECYCLING AT OUR FIESTA PARADES.

AND WE INCREASED BY 4% THIS YEAR.

LAST YEAR OUR RECYCLING RATE WAS 16%.

WE'RE UP TO 20% THIS YEAR FOR THE BATTLE OF FLOWERS AND FLAMBEAU PARADES.

I WANT TO THANK THE 250 VOLUNTEERS THAT WORKED WITH US AND HELPED US WITH THE RECYCLING EFFORT.

AND, OF COURSE, DAVID MCCARY, THE KING OF SOLID WASTE AND HIS ENTIRE TEAM DID A GREAT JOB, AS USUAL.

AND OF COURSE WERE HANDING OUT FIESTA MEDALS TO THOSE WHO HELPED IN THE EFFORT AND DID THE MOST IN TERMS OF AUDIO].

YOU'LL RECALL EARLY LAST MONTH I REPORTED TO YOU THAT THE CITY'S TRANSPORTATION AND CAPITAL IMPROVEMENTS DEPARTMENT HAD BEGUN THE ANNUAL SPRING POTHOLE BLITZ TO REPAIR AS MANY POTHOLES AS POSSIBLE THROUGHOUT THE MONTH OF APRIL.

THEIR GOAL WAS SET TO REPAIR 7500 POTHOLES, WHICH IS 50% MORE THAN THE MONTHLY AVERAGE.

AND WE REASSIGNED STAFF SO THAT WE COULD TACKLE THIS ISSUE.

BEGINNING APRIL 2, 16 CREWS WITHIN OUR STREETS DIVISION WENT TO WORK THROUGHOUT EACH OF THE COUNCIL DISTRICTS TO ACHIEVE THE GOAL.

AND I'M VERY PLEASED TO REPORT

[02:55:02]

THAT THEY SURPASSED THEIR GOAL OF 7500 WITH A FINAL COUNT OF NEARLY 12,000 POTHOLES REPAIRED IN THE MONTH OF APRIL.

THAT'S A 45% INCREASE, MORE POTHOLES REPAIRED THAN THEY HAD PLANNED FOR.

SO TO CONTINUE PROVIDING A SAFER DRIVING EXPERIENCE ALONG OUR CITY STREETS FOR RESIDENTS AND VISITORS ALIKE, TCI WILL CONTINUE THEIR POTHOLE PATROL TEAM AND WE ARE FOCUSED ON REPAIRING POTHOLES AS QUICKLY AS POSSIBLE.

SOME OF YOU KNOW THAT THROUGH THE 311 SYSTEM WE HAVE A TIME-FOCUSED METRIC THERE, SO AS RESIDENTS CALL IN ON THE 311 SYSTEM WE REPAIR.

AND OF COURSE THE TEAM IS OUT THERE JUST AUTOMATICALLY PROACTIVELY MAKING THOSE REPAIRS.

WE TRY TO ADDRESS EACH ONE THAT'S CALLED IN ON 311 WITHIN TWO BUSINESS DAYS.

SO WE'RE MEETING THAT METRIC NOW AND WE'RE GOING TO TRY TO DO THAT EVEN MORE.

AND HOPEFULLY THROUGH THE ADDITIONAL MONEYS THAT WE HAVE IN OUR OPERATING BUDGET AS WELL AS WITH THE BOND PROGRAM WE'RE BEGINNING TO TACKLE THE STREET REPAIR SITUATION ALONG WITH PREVENTIVE MAINTENANCE.

I DO WANT TO THANK THE TCI REPAIR CREWS FOR THEIR GREAT EFFORT, AS WELL AS THE LEADERSHIP BY MIKE AND ART IN TERMS OF TACKLING OUR MORE THAN 4,000 MILES OF STREETS IN SAN ANTONIO.

AND I THINK WE ALREADY THANKED JEREMY.

THAT WAS ON MY LIST.

THAT'S ALL TO REPORT THIS MORNING.

WE DO HAVE A COUNCIL MEETING CONTINUING AT 1:00 P.M.

>> GONZALES: THANK YOU, SHERYL.

WE ARE RECESSING UNTIL 1:00 FOR THE CPS BRIEFING IN THE B ROOM.

[Executive Session]

>> MAYOR NIRENBERG: GOOD AFTERNOON, EVERYONE.

THE TIME IS 1:12 P.M., THURSDAY, MAY 10.

THE SAN ANTONIO CITY COUNCIL WILL NOW MEET IN ITS PREVIOUSLY ANNOUNCED EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071, CONSULTATION WITH ATTORNEY .

[CPS Energy Utility Briefing]

>> OKAY.

GOOD AFTERNOON.

I'M VERY APPRECIATIVE OF THE TIME TO DO OUR BIMONTHLY UTILITY BRIEFING.

I END UP WITH A LOT OF STUFF, BUT I WILL BE THANKFUL OF YOUR TIME AND MOVE THROUGH IT FAIRLY SWIFTLY.

I DO WANT TO POINT OUT THAT YOU DO HAVE SOMETHING IN FRONT OF YOU.

FOR ANYONE IN THE AUDIENCE WHO WANT SOME OF THE MATERIALS.

IF WE RUN OUT WE'LL GET YOUR INFORMATION AND SEND IT TO YOU.

BUT WE HAVE, IN ADDITION TO THE PRESENTATION SOME OUTREACH MATERIALS.

WE'RE DOING A SUMMER CONSERVATION CAMPAIGN AND WE WANTED YOU TO SEE THEM.

THEY HAVE BEEN TAILORED TO BE IDENTIFIED FOR A SPECIFIC LOCATIONS AT YOUR OFFICES, HAVE SPECIFIED, AND SO WE ARE GOING THERE BUT BUT WE CAN ALSO MOVE OR EXPAND AND HAVE MORE THAN ONE OF THEM IN OUR AREA.

WE JUST WANT TO DO AS MUCH OUTREACH AS POSSIBLE TO REALLY TALK ABOUT HOW PERFORM CONSERVATION IS AND WHAT THEY CAN DO TO BOTH CONSERVE AND SAVE MONEY.

ADDITIONALLY, I'M GOING TO HAVE MY TEAM DO SOMETHING REALLY QUICK.

WE STARTED A NEWSLETTER FROM CPS ENERGY.

I AM GOING TO HAVE THEM COME AROUND AND GIVE YOU A COPY OF THE SECOND NEWSLETTER.

WE'RE GOING TO END UP ADDING THIS TO CUSTOMERS.

ANYONE WHO WANTS TO BE ON THE NEWSLETTER, IT'S ABOUT HOW WE ARE OUTREACHING AND SOME OF THE MAJOR THINGS WE'RE DOING.

AND SO, I WILL, WITH THAT, GET STARTED.

FIRST SLIDE? SO, ON TODAY'S AGENDA, I WILL, AS BRIEFLY AS POSSIBLE, TRY TO COVER SOME INITIATIVES.

>> MAYOR NIRENBERG: PAULA, IF I CAN ASK FOR YOUR COURTESY ONE SECOND.

I WANT TO ANNOUNCE THE COUNCIL RECONVENED FROM THE EXECUTIVE SESSION AND NO ACTION WAS TAKEN JUST TO FORMALLY SHUT OUR EXECUTIVE SITUATION

>> ABSOLUTELY.

WE'RE GOING TO TALK A LITTLE ABOUT NEW VEHICLES WE ADDED AND TECHNOLOGY WE'RE IMPLEMENTING IN OUR COMMUNITY.

I WILL TALK ABOUT A SENATE TESTIMONY AND HEARING -- THE TESTIMONY I GAVE AND HEARING I HAD AT TEXAS SENATE COMMITTEE.

I WILL TALK ABOUT THE ERCOT MARKET AND WHAT WE THINK WE HAVE UP IN STORE FOR THE SUMMER.

WE'VE HAD AN UPDATE RELATIVE TO

[03:00:01]

THE ERCOT MARKET GOOD STUFF.

LOTS OF FOCUS FROM ERCOT AND PUC.

WE WILL TALK ABOUT AGAIN OUR PREPAREDNESS.

HOW DO WE MAKE SURE WE SHOW UP WITH OUR GENERATION.

HOW WE'RE GOING TO MOVE INTO A CAMPAIGN THAT WE'RE GOING TO USE TO TALK ABOUT CONSERVATION TO ALL OF OUR CUSTOMERS AND I WANT TO GIVE AN UPDATE ABOUT THE FLEXIBLE PATH PLAN AND OUR OUTREACH ON THAT.

SO, WE HAVE BEEN IMPLEMENTING NEW TECHNOLOGIES.

ONE, I TALKED ABOUT IT FIRST BUT WE HAD NOT LAUNCHED BUT WE ACTUALLY DID A LAUNCH OF WHAT WE CALL THE SMART SFIFER.

IT'S A RETROFITTED CAR THAT HAS METHANE DETECTION EQUIPMENT ON IT.

THE SIGNIFICANCE OF IT IT WILL HELP US DO SCANS AROUND THE COMMUNITY IN PLACES WHERE WE CAN DO PREVENTATIVE MAINTENANCE BEFORE IT GETS TO BE A PROBLEM AND CAN HELP US DETERMINE AFTER WE DO MAINTENANCE EFFECTIVENESS REMEDIATING ANY ISSUES WHERE THERE MIGHT HAVE BEEN A LEAK.

THAT'S SOMETHING WOMAN SANDOVAL AND MARIO SANDOVAL -- BRAVO, I'M OTHER, BRAVO.

>> SANDOVAL: HE'S ENLIGHTENED.

NOT THAT ENLIGHTENED.

>> I'M GOING TO TELL THEM I CAN'T SEE THAT FAR.

MARIO IS HEADING UP OUR ENVIRONMENTAL STAKEHOLDERS GROUP.

HE'S VERY INVOLVED.

YOU'LL SEE HIM LATER IN THE PRESENTATION AS WELL.

WE'RE REALLY EXCITED ABOUT THE SMART SNIFFER TECHNOLOGY AND INTRODUCTION.

ADDITIONALLY WE INTRODUCED 34 SPECIFICALLY HYBRID ELECTRIC VEHICLES FOR OUR FLEET.

WE'VE DONE SOME BEFORE IN OUR OUTREACH AND CREW VEHICLES.

WE ARE GOING TO USE THEM IN THE FIELD.

IT WILL HELP US REDUCE EMISSIONS.

INCREASE EFFICIENCY.

VERY, VERY EXCITED.

THE BIGGEST PILOT IN THE UNITED STATES.

WE'LL GIVE YOU AN UPDATE HOW WELL THAT GOES.

SO, ACTUALLY LET'S GO TO THE NEXT CHART.

THE SENATE BUSINESS AND COMMERCE COMMITTEE IS ONE OF THE MANY COMMITTEES.

THIS ONE HAS BEEN VERY FOCUSED ON THE ERCOT MARKET POWER.

HOW DIFFERENT PROVIDERS ARE MEETING THE NEEDS OF CUSTOMERS, AND SO THAT WAS THE PRIMARY DRIVER.

I BEGIN, I WILL TALK ABOUT THIS WHOLE CHALLENGE THAT THE STATE HAS, CAPACITY HAS BEEN LEAVING OUR MARKET.

SOME HAS COME BACK IN AND IT'S A TIGHTER MARKET.

THIS COMMUNITY IS VERY FOCUSED ON WHETHER OR NOT WE ARE READY.

WE WERE THERE FOR ABOUT SIX HOURS.

THE PREDOMINANT AMOUNT OF TIME WAS SPENT ON THIS.

WE HAD EVERYONE FROM ERCOT TO TEXAS PUBLIC POWER ASSOCIATION THAT WE'RE A MEMBER OF PARTICIPATE PUC.

MANY OPERATORS, DISTRIBUTION COMPANIES FROM ALL PARTS OF COMPETITIVE MARKET THE AS WELL AS MUNICIPAL.

WE TESTIFIED AS THEY ASKED US MANY QUESTIONS.

VERY HELPFUL, VERY V INFORMATIONAL.

NEXT CHART? THIS IS JUST A PICTURE SNAPSHOT OF WHEN WE CAME UP.

WHEN WE CAME UP, WE TALKED ABOUT OUR PARTICIPATION IN THE ERCOT MARKET.

WHAT DOES PUBLIC YOPOWER DO, HO DOES IT WORK AND BENEFITS WHETHER OR NOT YOU'RE IN A COMPETITIVE MARKET, OR MARKET CLOSE TO COMPETITION, YOU GET THE SAME ESTIMATES.

SAME EFFORTS, SAME PROGRAM APPROACH.

SO THERE'S A LOT OF COMPARABILITY BETWEEN THE TWO MARKETS.

SO, NEXT SLIDE.

WHAT WAS A FOCAL POINT WHEN I TALKED IN PRIOR MEETINGS THERE WAS A FOCUS OF RESERVE MARGIN.

WHEAT THE TOTAL AMOUNT OF MEGA WATTS THAT CAN BE PRODUCED THAT CAN COVER ALL OF THE DEMAND THAT ALL CUSTOMERS HAVE.

SO IT IS A BASIS OF PRODUCING THINGS THAT SUPPLY AND WHAT CUSTOMERS REALLY NEED WHICH IS DEMAND, AND SO THE ELEMENT OF STAYING IN A PLACE WHERE YOU HAVE WHAT WE CALL A HEALTHY RESERVE MARGIN, THAT DIFFERENCE, EVERYTHING MORE ABILITY TO SUPPLY THAN CUSTOMERS WOULD DEMAND IS IMPORTANT.

THE THE ERCOT THRESHOLD HAS BEEN STATED AS WANTING TO HAVE BEEN 1.75 PERCENT OF A RESERVE MARGIN.

EARLIER IN THE LATE FALL, PROBABLY IN THE DECEMBER TIME FRAME, THEY FIRMED UP THAT THEY THOUGHT THIS WAS GOING TO BE THE FIRST TIME IN MANY YEARS, WHERE THE RESERVE MARGIN WAS NOT GOING TO BE 13.75.

IT WAS GOING TO BE BELOW 10 PERCENT.

THAT COURSED A TREMENDOUS AMOUNT OF FOCUS AND EFFORT.

ALSO TELL YOU WHEN THE MARKET RESPONDED WHEN THERE'S LESS RESERVE MARKET AND LESS SUPPLY

[03:05:01]

THAT DRIVES PRICES UP.

WE DID SEE SOME OF THAT.

THE BIGGER ISSUE, MORE THAN PRICING.

BECAUSE I THINK IT WILL BE MANAGEABLE OVER THE SUMMER.

THAT'S EVERYBODY'S GOAL.

THE BIGGER THING IS NOT OVERTAX THE SYSTEM TO WHERE WE WOULD RUN SHORT ON POWER AND ULTIMATELY CAUSE INSTABILITY, ROLLING BURNOUTS, THOSE THINGS.

SO IT IS A BIGGER POINT ABOUT RELIABILITY.

RESILIENCY OF THE SYSTEM AND THEN ULTIMATELY HOW DOES IT AFFECT EVERY CUSTOMER IN THE AREA.

WHAT HAPPENED JUST APRIL 30TH, THEY DID A REVISION.

AGAIN, SOME POWER PLANTS THOUGHT THEY MIGHT COME BACK IN, AND HELP IN THE SUMMER AND PARTICIPATE IN THE MARKET, SO THE RESERVE MARGIN WENT FROM BELOW 10 PERCENT TO, WHERE YOU CAN SEE, ABOUT 11 PERCENT.

INTERESTING THING I'LL POINT OUT, IF YOU LOOK, THE -- STATS KEEP INCREASING BECAUSE OUR STATE KEEPS BRINGING IN CUSTOMERS.

THERE'S INCREASINGLY MORE PEOPLE COMING IN.

MORE DEMAND.

WHAT IS HAPPENING THE RESERVE MARGIN IS MOVING.

WE THINK WE'LL KEEP 11 PERCENT FOR THIS YEAR AND NEXT YEAR.

WE THINK WE'LL HAVE MORE KICK-UP IN THE YEAR AFTER BUT THAT'S STILL GETTING BACK TO THE MORE HEALTHY LEVELS THAT WE'RE GETTING TO AND WE HAVE TO WATCH IT GOING FORWARD.

NEXT CHART.

WHAT THIS CHART DOES, I'D ASK YOU TO LOOK AT THE FAR RIGHT OF THE SLIDE, FIRST, REALLY, BECAUSE THAT'S THE ERCOT MARKET AND IT BASICALLY SHOWS THAT WE HAVE A TOTAL RESERVE MARGIN OF 7.7 -- 7,700 MEGA WATTS OF EXCESS CAPACITY FOR ALL OF ERCOT.

THAT'S HOW YOU GET 11 PERCENT OF THE TOTAL.

IF YOU LOOK ON THE LEFT SIDE OF THE PAPER, THAT'S CPS ENERGY.

AND OUR DEMAND IS EVERYTHING IN BLUE THAT GOES TO OUR COMMUNITY.

OF THE GRAY ARE WHERE WE HAVE WHOLESALE CONTRACTS.

WE HAVE A HONDO AND FLORESVILLE AND CASTROVILLE THAT HAVE BEEN OUR CUSTOMERS FOR A VERY LONG TIME AND WE DO SOME SELLING TO OTHER CUSTOMERS OF THAT CAPACITY.

THAT GRAY REPRESENTS COMMITMENTS THAT WE HAVE ABOVE RESIDENTIAL CUSTOMERS, THEN WHEN YOU SEE THE ORANGE THAT'S THE LEFTOVER EXCESS CAPACITY THAT HELPS US, IF WE HAVE TO TAKE A PLANT DOWN FOR MAINTENANCE, WE ARE ABLE TO USE THAT EXCESS CAPACITY.

AGAIN IT HELPS US CONTROL OUR DESTINY AND PRESENTS US FROM BEING EXPOSED TO PRICE SPIKES.

THE MOST IMPORTANT THING TO POINT OUT IS FOR OUR LOAD, AND WE HAVE ABOUT 5,000 MEGA WATTS OF LOAD THAT COMES FROM THIS COMMUNITY, AND THEN A LITTLE BIT MORE IN CONTRACTS, FOR OUR LOAD AND WHAT WE'RE DOING, WE REPRESENT ABOUT 7 PERCENT OF ALL ERCOT ACTIVITY.

BUT, RELATIVE TO THE RESERVE MARGIN.

RELATIVE TO THE INSURANCE OF HAVING INVESTED MORE IN GENERATION, WE REPRESENT ABOUT 18 PERCENT OF THE RESERVE MARGIN.

SO WE ARE BY FAR CONTRIBUTING ALMOST TWICE, MORE THAN TWICE, LEVELS OF OUR OVERALL GENERATION WHICH SUPPORTS RELIABILITY FOR THE ENTIRE MARKET.

THIS IS ONE OF THES OUR SENATORS FOUND INTERESTING AND IN PARTICULAR WE WERE BENEFITTED BECAUSE SENATOR CAMPBELL, HER DISTRICT, WE COVER PART OF HER DISTRICT.

SHE WAS VERY FASCINATED TO UNDER THE TRICKS DONE BY THE CITY OF SAN ANTONIO NOT JUST HELP OUR CUSTOMERS BUT HELP THE STATE AND I THINK THAT REALLY HELPED IN TERMS OF VALUE PROPOSITION THAT THE SENATORS SAW WITH OUR MARKET.

SO, NEXT SLIDE.

THIS IS JUST A SMALL ILLUSTRATION, TOO, THOUGH.

WHEN THERE IS A REDUCTION IN SUPPLY.

SO, AS I TALKED TO YOU BEFORE, THREE LARGE COAL PLANTS DECIDED TO CLOSE.

THERE WASN'T ENOUGH ECONOMIC INCENTIVE FOR THEM TO STAY ONLINE.

IT A BIT MORE EXPENSIVE FOR THEM TO OPERATE.

GAS IS REALLY THE PRODUCTION FUEL ON THE MARGIN THAT SETS THE PRICING AND COAL TYPICALLY OPERATES HIGER THAN THAT.

I WOULD TELL YOU, THOUGH, THE PRICE OF THE TRANSPORTATION IN THE COAL BUSINESS IS MORE THAN THE COAL SUPERINTENDENT UNITS.

IT'S A COMPLEX WAY TO DELIVER.

WHEN THOSE PLANTS WENT OFF, THE PLY WILL GO DOWN, AND THAT REALLY EVERY MEGA WATT IN THE MARKET GETS MORE VALUABLE.

WHAT HAPPENED WAS THE MARKET PRICES.

THAT BLUE LINE, THAT'S WHERE THE FORECAST WAS, AND RED LINE IS WHAT HAPPENED AFTER PEOPLE STARTED LOOKING AT WHAT WAS HAPPENING TO THE CAPACITY.

SO PRICES HAVE DOUBLED.

WHAT IT ALSO MEANS, WHEN YOU CAN'T COVER ALL OF YOUR DEMAND FOR YOUR CUSTOMERS, YOU'RE GOING TO BE EXPOSED TO ANY EXTRA VOLATILITY IN THE MARKET.

THAT'S THE SIGNAL FOR THAT.

THAT'S WHY IT'S IMPORTANT WE HAVE THE ABILITY TO COVER OUR LOAD, PLUS SOME AND MANAGE OUR PRODUCTION COSTS HERE AND NOT BE

[03:10:02]

EXPOSED TO THE VOLATILITY IN THE MARKET.

NEXT SLIDE? THIS SLIDE REALLY SHOWS KIND OF A SUMMARY OF OUR PORTFOLIO AND THE EFFECTIVENESS OF IT.

THERE'S MULTIPLE THINGS TO POINT OUT.

IF YOU LOOK TO THE LEFT, YOU HAVE FOSSIL FUEL.

WE START WITH THAT, COAL, GAS, PEAKERS AND STEAM UNITS AND THOSE ARE VERY EFFICIENT, VERY EFFECTIVE.

THEY SHOW UP.

THEY ARE CONSISTENT.

DOESN'T MATTER WHAT THE WEATHER IS, THEY ARE PRODUCING.

IT IS GOOD THAT YOU IF YOU LOOK ON THE RIGHT SIDE OF IT, FAR RIGHT, WIND DOESN'T NECESSARILY SHOW UP AS MUCH AS PEAK.

IT ACTUALLY PRODUCES MORE.

WHEN WIND IS BLOWING, WIND BLOWS MORE AT NIGHT THAT'S WHY THE CAPACITY FACTOR IS LOWER.

SOLAR GETS CLOSER AGAIN BECAUSE ULTIMATELY SUN IS SHINING NOW, IT DOES NOT OPTIMIZE, RIGHT AT 5:00 WHEN DEMAND GOES UP.

THAT'S WHY IT'S CAPACITY FACTOR AND EFFICIENCY IS A BIT LOWER BUT IT'S GOOD.

INCREASINGLY, YOU LOOK AT ALL OF THE PRODUCTION OUT OF OUR PORTFOLIO, WE HAVE A HIGH PERFORMING PORTFOLIO OVERALL.

OKAY? THIS NEXT SLIDE, THERE'S A LOT OF STUFF HIRE BUT IT BASINGLY SAYS WE HAVE TO DO A LOT OF WORK, A LOST PREVENTATIVE MAINTENANCE, A LOT OF CHECKING, A LOT OF ACTIVITIES TO MAKE SURE THAT WE ARE GETTING EVERYTHING READY.

WE DO THAT, WE CERTIFICATE TO THOR RCOTH MARKET THAT WE'RE ATOP OUR MAINTENANCE AND THEY HAVED EVERY OPERATOR TO DO THAT.

OUR COO SIGNS UP TO ALL RELEVANT, OUR DELIVERY SYSTEMS AND GAS SYSTEMS AS WELL.

NEXT LIED.

IT'S IMPORTANT HOW THE PORTFOLIO PERFORMS. BUT IT'S ALSO IMPORTANT WHAT WE DO RELATIVE TO OUR PROGRAMS. I ALWAYS WANT TO REMIND EVERYONE THIS IS SOMETHING APPROVED BY OUR BOARD AND ULTIMATELY APPROVED BY COUNCIL FOR US TO INVEST IN THE PROGRAM.

WE HAVE STEP PROGRAM THAT DOES A LOT OF THINGS.

STARTED OUT WITH L.E.D.S AND INVESTMENTS IN THAT AND HAS WEATHERIZATION COMPONENT.

SOLAR REBATE ACTIVITY.

COMMUNITY SOLAR, ALL OF THESE THINGS THAT ARE IMPORTANT, PLUS WHATEVER ELSE WE CAN PUT IN THERE.

GAS WATER PUMPS.

THINGS THAT REALLY ULTIMATELY BRING CONSERVATION LEVELS DOWN.

THE SIGNIFICANCE, I THINK I REALLY WANT TO POINT OUT TO YOU, WE PUT THIS IN SO WE WOULDN'T HAVE TO MAKE AN IMMEDIATE DECISION TO MAKE UP FOR THOSE MEGA WATTS.

IF YOU LOOK RIGHT NOW, IT'S REALLY PRODUCING SAVINGS, CONSERVATION OF 626 MEGA WATTS.

IF WE HAD BEEN ON THE SAME COURSE OF HOW WE SOLVE PROBLEMS IN THE FUTURE, WE WOULDN'T HAVE SPENT THE MONEY ON CONSERVATION, WE WOULD HAVE BEEN IN THE MIDDLE OF INVESTING IN A NEW PLANT.

I HAVE TO ADMIT.

BY THE TIME WE WOULD HAVE KNOWN THIS, WE WOULD HAVE PROBABLY -- THIS IS WELL BEFORE THE GAS PRICE CHANGE AND ABUNDANCE OF ALL OF THE VOLUMES OF GAS WE HAVE, SO, AT THE TIME.

WE WOULD HAVE REALLY STARTED WITH ANOTHER COAL PLANT, SO, WHAT THIS HAS DONE IS LET US NOT INVEST IN ANOTHER 40 TO 60-YEAR ASSET.

DEFER THAT COST, USE CONSERVATION, LET TECHNOLOGY TAKE OUT.

LET THE MARKET PRICES SETTLE IN AND ALLOW US TO MAKE MORE EDUCATED DECISIONS LATER.

AND I'LL HIGHLIGHT AGAIN.

WHEN YOU DO A COAL PLANT, YOU HAVE ABOUT A FOUR-YEAR LICENSING, PERMITTING PLAN THAT YOU HAVE TO DO EVEN BEFORE YOU GET STARTED.

AIR QUALITY PERMITS AND ALL OF THOSE THINGS, SO THE LONG-TERM NATURE OF MAKING INVESTMENTS THAT ARE THIS SIGNIFICANT, A BILLION DOLLARS IN INVESTMENT IS TREMENDOUS.

BOTTOM OF THE CHART BASICALLY SAYS THAT WE BELIEVE AND WE'VE DONE THE CALCULATION THAT OUR INVESTMENTS IN CONSERVATION WHERE WE ARE REALLY HELPING PEOPLE CONSERVE AND REDUCE DEMAND AND KEEP OUR PEAK LOWER HAS BEEN A BETTER INVESTMENT THAN PUTTING A BILLION DOLLARS IN THE PLANT, THAN OPERATING AND MAINTAINING THAT PLANT OVER 30, 40 YEAR.

THIS IS KIND OF OUR BEGINNING THOUGHTS HOW DO WE KEEP OURSELVES FLEXIBLE AND BEING ABLE TO MOVE IN THE FUTURE.

WHAT YOU HAVE IN FRONT OF YOU, THIS IS JUST A HIGHLIGHT.

THAT SAID PART OF OUR CONSERVATION PLAN IS TO TALK TO PEOPLE ABOUT CONTROLLING THEIR THERMOSTATS.

HOW DO THEY DO IT, HOW DO THEY MAKE SURE THEIR BILLS COME DOWN AND COP SUMS COMES DOWN AT THE SAME TIME.

WE ARE LAUNCHING THAT AS WE SPEAK TO THE COMMUNITY.

NEXT SLIDE.

THESE ARE SCHEDULED LOCATIONS.

WE HIT ALL OF YOUR DISTRICTS.

AND WE ARE ALSO OFFERING IT TO THE SUBURBAN COMMUNITIES AND TO THE COUNTIES, WHOEVER WOULD LIKE ONE.

YOU CAN HAVE MORE THAN ONE.

WE STAND READY TO WORK WITH YOUR OFFICES TO TALK TO THEM ABOUT THE CONSERVATION THAT CAN BE DONE.

NEXT SLIDE.

THE FLEXIBLE PASS.

I THINK THE LAST TIME I WAS HERE THERE WAS A LOT OF QUESTIONS ABOUT THE FLEXIBLE PASS AND WHY WE'RE DOING IT AND SOME ISSUES.

WHAT WHY WERE ASKED BY THE

[03:15:02]

STAKEHOLDER COMMUNITY.

WE HAVE DIRECT CONTACT WITH.

WE MEET WITH THE COMMUNITY QUARTERLY.

WE'VE DONE THAT FOR SEVERAL YEARS.

THEY ASKED FOR MORE INFORMATION HOW WE DEVELOP THE FLEXIBLE PLAN, WE BROUGHT THEM IN AND GAVE THEM MORE STATS.

IT WENT VERY WELL.

THEY ASKED GREAT QUESTION AND THEY CONTINUE TO ASK US.

THE FLEXIONABLE PATH IS FLEXIBLE.

AND ACCORDINGLY WE'LL TAKE INTO A LOT OF DIFFERENT CONSIDERATIONS EVERYTHING IN CONSERVATION AND THE BEST WAY TO SUPPLY POWER HERE.

THIS IS TO GIVE YOU AN IDEA.

WE'RE GOING OUT AND MOVING OUT THROUGHOUT THE COMMUNITY.

TO DIFFERENT LOCATIONS, ANYBODY THAT YOU WOULD LIKE TO TALK TO TO EXPLAIN WHAT THE FLEXIBLE PATH IS AND ANSWER QUESTIONS.

NEXT SLIDE.

THESE ARE THE NEXT SCHEDULED DATES.

WE ARE HAVING A BIG DATE ON LAVILLITA AND OUR BOARD MEMBERS WILL BE THERE.

NEXT SLIDE.

IN SUMMARY IT WILL BE A TIGHT SUMMER.

WE ARE READY TO FORM.

WE'VE DONE PREVENTATIVE MAINTENANCE CHECKS.

WE ARE READY TO GO.

WE CAN ALSO ASK CUSTOMERS TO UNDERSTAND THE STRESS IS ON THE STATE AND REALLY MAKE SURE WE ARE ASKING FOR THEIR PARTICIPATION AND THE GOOD THING ABOUT IT IS ALONG THE WAY IT HELPS OUR CUSTOMERS SAVE MONEY.

SO, THAT IS MY PRIMARY POINT, AND I WOULD BE GLAD TO ANSWER ANY QUESTIONS.

>>> ALL RIGHT.

THANK YOU, PAULA.

WE'LL GO AND START WITH HANI.

COUNCILMAN PELAEZ.

>> PELAEZ: PAULA, I WANT TO TALK ABOUT THE MAKE TIME TO UNPLUG SUMMER EVENT THAT YOU HAVE ON THE FLYER.

MY TEAM IS REALLY PUMPED UP ABOUT THIS AND WILL BE ATTENDING THE EVENT.

IF YOU HAVE NOT -- THIS IS TO MY FELLOW COUNCIL MEMBERS.

IF YOU HAVE NOT HAD AN OPPORTUNITY TO INVITE CPS TO ACTUALLY GIVE ONE OF THESE PRESENTATION, YOU'RE MISSING OUT.

YOU HAVE A FELLOW WHO WORKS FOR YOU NAMED RONNY GUEST WHO IS JUST A ROCK STAR AND HE REALLY GETS THE CROWD INVOLVED AND THEY REALLY TAKE TO HIM.

IT'S SO MUCH MORE THAN JUST A, HEY, IT'S A GOOD IDEA TO UNPLUG YOUR KEURIG MACHINE AND PHONE CHARGER BEFORE YOU LEAVE THE HOUSE.

IT'S A VERY ROBUST PRESENTATION.

THANK YOU FOR DOING THAT.

>> THANK YOU.

>> PELAEZ: HOW DO YOU RESPOND TO CONSTITUENTS.

WE GET A DULL EVERY ONCE IN A WHILE.

THEY SEE THIS AND SAY, GREAT, THANKS, CPS TELLING ME HOW TO SAVE ENERGY.

HOW ABOUT YOU CHARGE ME LESS FOR THE ENERGY I USE AND STOP TELLING ME HOW TO LIVE MY LIFE.

WHAT IS THE RESPONSE TO THAT FROM CPS?

>> I THINK WE ALWAYS SAY, THANK YOU FOR BEING A CUSTOMER AND WE APPRECIATE THE FEEDBACK IS THE FIRST PART.

IT'S A PARTNERSHIP.

WE MANAGE THE ASSETS THAT THE COMMUNITY IN FACT OWNS, AND IT'S A COMPLICATED THING.

WE ARE -- WE UNDER THE PRICE SENSITIVITY IS IMPORTANT, SO WE ARE CONSTANTLY LOOKING FOR WAYS FOR US TO CUT COSTS WHICH, MATTER OF FACT, I THINK I'LL JUST HAND THIS OUT AND WE'LL MAKE THIS MORE PUBLIC IN THE FUTURE.

WE HAVE -- WE HAVE EFFORTS TO SHOW OUR CUSTOMERS THAT WE BUCKLE OUR BELTS AND WE'RE KEEPING THE COVERS LOWER.

WE HAVE OUR GENERATION WORKING FOR THEM, SO, THEY ARE NOT AS EXPOSED.

BUT AT THE SAME TIME.

SOME PEOPLE FORGET ALL OF THE UNITS THAT THEY HAVE, THAT THEY PLUG IN, I PLUG IN IN TERMS OF MY CABLE UNIT OR MY PHONES OR ALL OF THOSE THINGS, THERE WAS ACTUALLY MORE POOL, SO IT JUST HELPS US TO WORK TOGETHER AND BE PARTNERS AND BE INFORMATIONAL.

WE ARE NOT DICTATING THOSE.

WE ARE OFFERING THAT KNOWLEDGE.

BY FAR, WE HAVE CUSTOMERS ON THE OTHER SIDE THAT TELL US, THANK YOU FOR TELLING ME THAT.

I'M SO BUSY IN MY LIFE.

I HADN'T THOUGHT ABOUT IT THAT WAY.

THEY IN FACT GET THE BENEFIT BECAUSE THEIR BILLS DO GO DOWN AND CUSTOMERS GET WHAT THEY WANT.

>> PELAEZ: THANK YOU TORE THAT ANSWER.

SO WHEN CAN WE EXPECT THIS EFFORT THAT YOU'RE DESCRIBING WHICH IS TELLING OUR CUSTOMERS HOW WE CUT COSTS AT CPS?

>> TO YOUR POINT, RONNY GUEST AND CREW HAVE BEEN DOING THIS.

BUT OUR BIG PUSH, STARTING RIGHT NOW, WE'RE STARTING TO GO OUT AND EXPLAIN THAT.

KY SHARE IT WITH YOU.

I'LL SEND IT TO YOU.

OUR CORPORATE COMMUNICATIONS PLAN IS ACTUALLY PUTTING OUT SOCIAL MEDIA, WHERE WE'RE GOING TO RUN SOME ARTICLES.

WE'RE GOING TO GIVE SOME INTERVIEWS.

WE'RE GOING TO TRY TO DO AS MANY THINGS TO MAKE THAT INFORMATION AS CLEAR TO CUSTOMERS AS POSSIBLE.

>> PELAEZ: THANK YOU VERY MUCH.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU COUNCILMAN PELAEZ.

COUNCILMAN COURAGE.

>> COURAGE: THANK YOU, MAYOR.

PAULA, HOW WOULD CPS CONTINUE TO

[03:20:02]

OPERATE AND FUNCTION IF YOU CLOSED DOWN OUR CURRENT COAL PLANTS?

>> WELL, IF WE CLOSED DOWN THOSE COAL PLANTS WE WOULD PRETTY MUCH BE WHAT WE CALL SHORT IN THE MARKET.

WE COULDN'T HAVE THAT RESERVE MARGIN.

SO, FOR THE PLANTS THAT WE CURRENTLY HAVE, WE WOULD CONTINUE TO RUN ALL OF THOSE THAT WE HAVE.

THEN WE HAVE TO GO OUT TO THE ERCOT MARKET AND BUY POWER THERE.

USUALLY, WE SEE RIGHT AWAY WE HAVE AN INCREASE BECAUSE PRICES DOUBLE FOR THE SUMMER, SO THAT STARTS TO HAVE THAT TURN OF MORE MARKET EXPOSURE, SO THAT'S WHAT WE WOULD DO AND WE THINK, IS THAT WHERE WE NEED TO BE? SHOULD WE JUST RIDE THE MARKET AND HAVE MORE VOLATILITY OR WAIT FOR NEW TECHNOLOGY, SO WE WOULD KEEP THE COMMUNITY INFORMED AND THINK, MAYBE WE WANT TO DO MORE OR LESS OF THAT.

>> COURAGE: SO THE BIGGEST IMPACT WOULD BE TO THE CONSUMER THAT THEIR COST OF FUEL AND THEIR BILL IS GOING TO BE SOMEWHAT HIGHER WHETHER IT'S TWICE OR WHATEVER THE MARKET MIGHT BE.

>> YEAH.

>> COURAGE: COMPARED TO WHAT WE GENERATE OURSELVES AND CHARGE THE CUSTOMER WHICH MIGHT BE LESS THAN THE MARKET RATE

>> THE ONLY OTHER THING I HIGHLIGHT TO YOU, I TRY TO CREATE EXAMPLES THAT MAKE SENSE.

AGAIN, WE MANAGE ASSETS THAT THE COMMUNITY HAS BOUGHT.

THESE ASSETS WE MANAGE THEM, BUT THEY ARE OWNED BY EVERYONE.

WE WOULD SHUT DOWN, PROBABLY REDUCE OUR WORKFORCE.

THERE WOULD BE COST TORS DO THAT.

IF IT HAPPENED VERY ABRUPTLY -- OUR GOAL IS KEEP ALL OF OUR EMPLOYEES AND MOVE THEM INTO NEW JOB, NEW TECHNOLOGIES, BUT IF WE'RE STRUCK DOING AN IMMEDIATE CLOSURE, THEN WE WOULD BE FACED WITH THOSE COSTS AND THOSE CHALLENGES BACK TO OUR MARKET.

PUTTING PEOPLE WHO HAVE VERY GREAT SKILLS OUT THERE, THAT THEY SHOULDN'T BE EXPOSED TO THAT.

THE OTHER THING IS, ANY COSTS WE HAVE WITH DUCT DON'T GO AWAY AUTOMATICALLY BECAUSE WE SHUT THE UNIT DOWN.

THE COMMUNITY WOULD STILL BE PAYING FOR ALL OF THOSE FIXED COST ON THE UNIT AND THEN WE STILL GO OUT AND BUY THE POWER TO REPLACE IT AND BASICALLY TO SOME DEGREE DOUBLE SOME OF OUR COSTS.

>> COURAGE: OKAY.

THANK YOU.

>>> THANK YOU COUNCILMAN COURAGE? ANY OTHER QUESTIONS FROM OUR COLLEAGUES? WOMAN SANDOVAL.

>> SANDOVAL: THANK YOU FOR YOUR PRESENTATION, PAULA AND BEING SO ENGAGING WITH US DEVELOPING THE FLEXIBLE ENERGY PLAN.

JUST A COUPLE QUESTIONS.

WE DIDN'T HAVE TO GO THROUGH A RATE INCREASE THIS YEAR.

>> YES.

>> SANDOVAL: CAN YOU TELL BUS THAT PROCESS AND HOW YOU CAME TO THAT CONCLUSION?

>> ABSOLUTELY.

>> SANDOVAL: THANKS.

>> IN REALITY.

WE TALK ABOUT WHETHER WE'LL NEED A RATE INCREASE EVERY YEAR, A COUPLE TIME HAVING YEAR.

IT'S A VERY INDEPTH PROCESS BECAUSE IT HAS TO TIE BACK TO STRATEGIC VIEW OF CUSTOMER GROWTH AND ULTIMATELY HOW OUR PLANTS ARE DOING.

WE LOOK AT FORECAST OF PLANT PRODUCTION, MEGA WATTS.

WE LOOK AT GAS PRICES.

WE TAKE IN ALL TYPES OF CONSIDERATIONS.

WE RUN FINANCING MODELS.

WE LOOK AT INTEREST RATES.

WE LOOK AT EVERYTHING.

MERGE IT ALL TOGETHER AND IT TAKES A SIGNIFICANT EFFORT TO DO IT.

WE CALL IT OUR DUE DILIGENCE EFFORT AND THEN WE BOIL IT DOWN TO, CAN WE KEEP FULFILLING THE NEEDS OF A GROWING COMMUNITY, INCREASING INVESTMENTS IN INFRASTRUCTURE, WE MAKE ALL TYPES OF INVESTMENT, TRYING TO IMPROVE OUR INVESTMENTS AND OUR TRANSMISSION SYSTEM, OUR DISTRIBUTION SYSTEM AND CERTAIN AREAS, AS ASSETS GET OLDER, AS LINES GET OLDER, THEY NEED TO BE UPGRADED AND REPLACED.

SO WE DO ALL OF THAT AT THE SAME TIME WE KEEP LAUNCHING MORE INVESTMENTS IN NEW TECHNOLOGIES, SUCH AS METERERING, AUTOMATION AND ALL OF THAT.

WE BUMP IT ALL TOGETHER.

TEST IT AND FORECAST WHAT IT LOOKS LIKE FOR THE NEXT 25 YEARS AND WE LOOK TO SEE WHEN WE HIT PRESSURE AND CAN WE MAKE IT THROUGH AND ARE WE MAINTAINING OUR FINANCIAL METRICS WITH ALL OF THOSE THINGS THAT HAPPENED.

SO, WE -- JUST LIKE ALWAYS, WE DID A MAJOR INTENSIVE EFFORT AND WE CULMINATED AND AT THE FIRST BLUSH, FOR EVERYTHING THAT WE WERE THINKING ABOUT WE WANTED TO DO AND WHERE WE THOUGHT THE MARKET WAS, WE THOUGHT MIGHT BE THE TIME.

AND SOMETIMES THE MEDIA SAY, ARE YOU -- ARE YOU FAILING? TR YOU KNOW, ARE YOU ABOUT TO GO BANKRUPT? ONE OF THOSE THINGS.

WE'RE A AA CREDIT RIGHT UNDER THE CITY'S AAA CREDIT.

YOU DON'T LET YOURSELF FAIL.

YOU MANAGE TO DISCIPLINE.

YOU MAKE SURE THAT YOU KEEP THE RIGHT LEVEL OF CASH RESERVES.

YOU MAKE SURE YOU CAN SERVICE ALL OF YOUR DEBT.

YOU MAKE SURE YOU CAN MEET ALL OF YOUR OBJECT GAKS AND LOOK TO MAKE SURE THAT YOU DON'T HAVE

[03:25:01]

THAT TYPE OF DIRE PRESSURE.

IF YOU HAVE THAT TYPE OF DIRE PRESSURE, YOU'RE LOWERING YOUR CREDIT RATING TO MAYBE EVEN NOT CREDIT WORTHY.

WE LOOK AT ALL OF THAT TO MAKE SURE WE CAN MAINTAIN THOSE METRICS.

AT THE SAME TIME.

JUST LIKE THE EXAMPLE OF THE LETTER WE PUT OUT THERE, WE ARE LOOKING FOR NEW WAYS TO CUT COSTS, NEW WAYS TO BE MORE EFFICIENT.

WHEN WE START WE'RE STILL TRYING TO DO COST SAVING THINGS ALONG THE WAY AND MERGE IT TOGETHER ALL IN ONE VIEW.

WE STARTED OUR MAJOR EFFORT.

WE REFRESHED IT AGAIN IN LATE 2017.

WHEN WE GOT TO THE BEGINNING OF 2018, AROUND THE FEBRUARY TIME FRAIM, WE FOUND MORE COST SAVINGS, AS AN EXAMPLE, SOME OF THOSE THINGS.

THAT HELPED US NOT HAVE AS MUCH PRESSURE.

WE THOUGHT ABOUT WHETHER OR NOT WE CAN HAVE A MORE EXTENDED IMPLEMENTATION OF SOME OF OUR PROJECTS.

WE DID SOME OF THAT AND WE ALSO SAID LET'S TAKE A LOOK AT AND TAKE A DEEPER DIVE OF SOME PROGRAMS WE HAVE.

WE'RE ANALYZING THAT.

WE ARE LIGHTENING OUR BELT AS MUCH AS POSSIBLE.

WHEN WE GOT TO THIS YEAR WE DECIDED 2018 WILL BE THE ANOTHER YEAR WE DOESN'T DO A RATE INCREASE.

BUT IT'S GETTING TIGHTER AND TIGHTER.

NEW INVESTMENTS ARE MADE.

WE ULTIMATELY WILL NEED ONE.

THERE'S NOT A SCENARIO THAT WE'VE RUN THAT SAYS WE WILL NEVER DO A RATE INCREASE AGAIN.

IT'S LIKE SAYING, YOU GOT A JOB AND NEVER GET A RAISE EVER AGAIN.

NEVER AGAIN.

THAT'S NOT RATIONAL.

EVERYTHING ELSE IS GOING OUT AROUND YOU.

SO, IT IS INEVITABLE.

WE JUST LOOK REALLY HARD EVERY YEAR TRYING TO PRESENT IT AND WE'VE BEEN SUCCESSFUL, BUT RM THE FUTURE HOLDS A RATE INCREASE.

>> SANDOVAL: THANK YOU FOR BEING VERY FRANK ABOUT THAT BUT ALSO FOR HOLDING IT OFF FOR THIS COMING YEAR.

WHEN WE DO SEE A RATE INCREASE IN THE FUTURE, WHAT KIND OF SCALE MIGHT BE ANTICIPATE? AND I WON'T HOLD YOU TO IT.

>> THANK YOU.

>> SANDOVAL: I'M JUST TRYING TO GET A SENSE IF IT'S LIKE --

>> I KNOW I'M IN TROUBLE.

I'M IN TROUBLE WITH YOU MULTIPLE TIMES ALREADY, SO --

>> SANDOVAL: MA'AM --

>> WE TRY TO KEEP IT AS LOW AS POSSIBLE.

WE HAVE DONE -- WE HAVE DONE 8.5 PERCENT HISTORICALLY.

8.5 PERCENT ONE TIME.

ACTUALLY MORE THAN -- ACTUALLY MORE THAN TEN YEARS AGO WE DID 8.5 PERCENT AND 7.5 PERCENT FOR GAS SYSTEMS. THE LAST ONE I THINK WAS 4 PANT 25.

WE THINK TRYING TO KEEP BILL INCREASES BELOW 5 PERCENT.

IF YOU PUSH IT OVER 5 YEARS, IT'S MUCH LOWER BUT WE TRY TO NOT GO OVER IF WE CAN -- IF IT'S GOING TO PUSH US TO BE MORE THAN THAT, WE GOT TO TELL YOU EXACTLY WHY.

BECAUSE WE'RE TRYING TO NEVER LET IT BE AT UNREASONABLE LEVEL.

IF WE GO LOWER THAN 5 PERCENT WE GIVE OUR CUSTOMERS LOWER HER THAN THAT.

>> SANDOVAL: THANK YOU VERY MUCH.

>> THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, WOMAN SANDOVAL.

PAULA, I ASSUME YOU GOT ENOUGH TIPS FROM YOUR LEGISLATIVE TEAM WHAT WE NEED TO BE AWARE OF MOVING INTO THE 2019 LEGISLATURE.

IS THERE ANYTHING AT THIS POINT YOU WANT TO SHARE WITH US?

>> YES.

SO, I WILL SAY -- WHERE IS KATHY GARCIA.

THERE SHE IS IN THE BACK.

KATHY IS VICE PRESIDENT OF EXTERNAL AFFAIRS.

SHE PAYS ATTENTION TO EVERYTHING AT THE FEDERAL, STATE AND LOCAL LEVEL.

SHE'S CONSTANTLY ON TOP OF IT.

SHE AND HER TEAM HERE, AND SO WE WILL CONTINUE TO BE ABLE TO GIVE YOU MORE UPDATES.

THE THINGS I HEARD CLEARLY, THERE IS SOME PRESSURE THAT CONNECT THE US WITH THE LOCAL CONTROL AND HOME RULE PERSPECTIVE.

AND I THINK THERE IS SOME INTEREST AT THE STATE LEVEL TO TAKE SOME AUTHORITIES AWAY FROM CITIES.

AND SOME DECISION, AND THINKING THEY CAN CREATE SOME THINGS THAT ARE BETTER FOR THE STATE OVERALL.

IT MANIFESTED IN A DISCUSSION TO SOME DEGREE ABOUT, OUR MUNICIPAL MARKETS AS GOOD AS COMPETITIVE MARKETS.

OF COURSE, WE DO EVERYTHING FOR OUR CUSTOMERS THAT UTILITY AND ENERGY COMPANIES DO IN YOUR COMPETITIVE MARKETS.

WE THINK WE'RE MARK CONNECTED.

WE THINK WE RESPOND DIFFERENTLY.

WE HAVE THE MOST INVESTMENT IN CONSERVATION THAN ANYONE IN THE STATE.

LATER ON WE MAY DECIDE WE DON'T NEED TO DO THAT.

MAYBE OUR INVESTMENTS OR GOOD AND WE CAN TIE THOSE DOWN.

THE WAY WE'RE CONNECTED AND TIED TO THE COUNCIL AND NOT TO A SEPARATE REGULATORY BODY.

WE MAKE THOSE DECISIONS BUT THE SENATE WAS VERY MUCH ON, WELL,

[03:30:03]

MAYBE THEY SHOULD TOLE THAT FOR AN ENTITY, MAYBE THAT SHOULDN'T BE THAT WAY.

THERE WERE SOME DISCUSSIONS ABOUT CITY PAYMENT.

THEY HAD A LOT OF SENSITIVITIES ABOUT CITY PAYMENT.

THEY DID HAVE SENSITIVITIES THAT WERE NOT PAR GETTED AT US.

SOME WIND COMPANY AND DIFFERENT ORGANIZATIONS THAT DON'T -- THEY SAY THEY ARE FOCUSED ON EDUCATION, BUT THE SENATE HAD A LOT OF QUESTIONS FOR THEM, TOO.

THEY ARE JUST CHALLENGING EVERYTHING THEY CAN RIGHT NOW TO GET A LOT OF CONTEXT.

I DO EXPECT SOME TYPES OF LEGISLATION TO BE ACTIVE IN THE LEGISLATIVE SESSION NEXT YEAR, AND I THINK IT WILL GO BETWEEN HOME RULE AND WHETHER OR NOT WE SHOULD ALLOW MUNICIPAL MARKETS AND COMMUNITIES TO OWN THEIR OWN UTILITIES.

I THINK IT WILL BE A DISCUSSION.

I THINK WE FARED WELL IN THE HEARING, TO EXPRESS AGAIN WHAT WE DO AND HOW WE DO IT.

I THINK IT MADE A HUGE POINT THAT ONLY IN THE MUNICIPAL MARKET DO YOU GET THE TYPE OF INCENTIVE TO INVEST MORE IN LONG-TERM SOLUTIONS.

I WORK FOR PUBLICLY TRADED COMPANIES IN THE FUTURE.

IT'S A LOT HARDER.

THEY HAVE TO BE COMFORTABLE EVERY QUARTERLY TURN.

OUR COMMUNITY EXPECTS US TO TAKE A VERY LONG-TERM VIEW ON THOSE INVESTMENTS AND ID THINK THEY ACCEPTED IT BECAUSE THEY SAW THE BENEFITS IN THE RESERVE MARGIN.

THEY WILL COME AT IT BUT I THINK THEY WILL ALSO LISTEN TO THE BENEFITS THAT WE'RE ABLE TO SHARE.

>> MAYOR NIRENBERG: I GUESS I WANT TO RE-EMPHASIZE THAT WE'LL NEED AS MUCH AS POSSIBLE, CONDENSED INFORMATION THAT CAN BE COMMUNICATED TO OUR DELEGATION AND OTHER DELEGATIONS THAT SHOW THAT BENEFIT AND THE RESERVE AS WELL AS OUR COMPETITIVENESS IN TERMS OF RATES TO THE RATE PAYER THAT ALSO RESULTS IN ENERGY UTILITY THAT'S RELIABLE FOR STOP YO, BUT ALSO THE BACKBONE OF TEXAS, SO, THANK YOU VERY MUCH, PAULA, I THINK THAT'S EVERYONE.

WE ARE AGOURN R JOURNED.

>> THANK YOU.

I WILL REACH OUT WITH ANY OTHER QUESTIONS AND FOLLOW-UP THAT I ALREADY OWE YOU.

THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.