* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:15] FOCUS ON THE HERE AND NOW. ANTONIO, IN SAN ANTONIO. GOOD MORNING EVERYONE. WELCOME [ PROCEDURAL  ] TO OUR CITY COUNCIL A SESSION. THE TIME IS 9:20 AM ON THIS 13TH DAY OF JANUARY, 2022. GO AHEAD AND CALL OUR A SESSION TO ORDER. UH, MADAM CLERK, COULD YOU READ THE ROLE? YES, SIR. COUNCIL MEMBER BAR BRAVO. HERE. COUNCIL MEMBER MAKI RODRIGUEZ. PRESENT, COUNCIL MEMBER VIE HERE. COUNCIL MEMBER ROCHA GARCIA. HERE. COUNCIL MEMBER CASTILLO. HERE. COUNCIL MEMBER CAVEO VARDA. COUNCIL MEMBER SANDOVAL. HERE. COUNCIL MEMBER ELAS. COUNCIL MEMBER COURAGE PRESENT. COUNCIL MEMBER PERRY HERE. MAYOR NUREMBERG. SIR, WE HAVE A QUORUM AND GOOD MORNING EVERYONE. THANK YOU VERY MUCH FOR YOUR PATIENCE. AND ALSO THANK YOU FOR HELPING US TO OBSERVE OUR SAFETY PROTOCOLS, UH, AMIDST THIS ONGOING PANDEMIC. UM, WE APPRECIATE YOUR PATIENCE AS WE ARE GETTING SETTLED THIS MORNING. UM, TO START US TODAY, I'D LIKE TO TURN THE FLOOR OVER TO COUNCIL MEMBER GRO TO WELCOME OUR INDICATOR. THANK YOU, MAYOR. I WOULD LIKE TO WELCOME OUR GUEST INDICATOR, SENIOR ORDAINED CHAPLAIN GINGER TRAINER, WHO IS THE PASTOR'S WIFE OF BROOK HILL BAPTIST CHURCH IN DISTRICT THREE. GINGER WAS ONE OF THE FIRST OF MY RESIDENTS TO BEFRIEND ME AND ATTEND MY CITY HALLS WHEN I GOT ELECTED IN JUNE. SHE COMES FROM BROOK HILL BAPTIST CHURCH. THIS WAS, THEY, THEY WERE, WERE THE RECIPIENT OF OUR COMPASSIONATE SAN ANTONIO AWARD IN 2019. GINGER HAS LED THE FAITH-BASED INITIATIVE FOR HUNGER AND HOMELESS FOR DISTRICT THREE FOR THE PAST FEW YEARS. SAN ANTONIO COMMUNITY RESOURCE DIRECTORY IS A DIRECTORY OF HUMAN SERVICES, INCLUDING NONPROFIT ORGANIZATIONS, CONGREGATIONS, GOVERNMENT AGENCIES AND COMPASSIONATE GROUPS IN AND AROUND SAN ANTONIO, AND DERIVED FROM THE TEAM OF COLLABORATION AND COMMUNICATION AMONGST THE FAITH-BASED COMMUNITY. WE COULD NOT ADDRESS OUR HOMELESS ISSUE WITHOUT OUR FAITH-BASED COMMUNITY. AND I WANNA THANK, UH, ALL HER HARD WORK AND CATHOLIC CHARITIES WHO CREATED THE HOPE FEEDING TRUCK, WHICH SERVED OUR HOMELESS COMMUNITY BY OBTAINING IDS OUT OF POLICE HEADQUARTERS. THEN OUT OF, UH, IMMACULATE HEART OF MARY CATHOLIC CHURCH, GINGER VOLUNTEERED WITH SS A P D AND HOPE TEAM ON ID RECOVERY. FROM 2018 TO 2020 LATER, CATHOLIC CHARITIES CREATED THE FAITH TRUCK FOR SHOWERS AND WAS FUNDED BY THE MORMON CHURCH. AS PART OF THIS COLLABORATION, SHE WENT ON TO LEAD THE CONVENING OF THE FAITH-BASED MINISTRIES AND LEAD THE HOMEWARD BOUND TEAM HOMELESS MINISTRY FROM HER HOME CHURCH, AND VOLUNTEERED AT THE SOUTH SIDE HOMELESS HUB IN 2020. CURRENTLY, SHE VOLUNTEERS DOING ID RECOVERY AT CAM ONCE A MONTH. GINGER GRADUATED FROM AND VOLUNTEERED AS AN ACTOR AT THE SS A P D C I T FOR OFFICERS AND FIRST RESPONDERS. IN 2018, SHE WAS IN THE LAST GRADUATING CLASS OF SAP'S CITIZEN POLICE ACADEMY. IN 2020, GINGER HAS STARTED HER VOLUNTEER EFFORTS WITH HURRICANE HARVEY AND MANY OTHERS. UNDER THE HAT OF TEXAS BAPTIST MEN NOVA, TEXAS CRISIS RESILIENCY TEAM, SS B T C, DISASTER RELIEF, AND SS A V O A D. SHE HAS BEEN THE LEADER OF THE BILL MILLER BUDDIES COFFEE CLUB, WHICH WE'RE VERY PROUD OF IN DISTRICT THREE SINCE TWO 2001, AND HAS [00:05:01] SERVED ON VARIOUS COMMITTEES HELPING WITH THE ALZHEIMER'S ASSOCIATION COMMITTEE FOR AS A CHAPLAIN FROM 2020 TO 2021. SHE HAS LED VARIOUS RELAY FOR LIFE CANCER WALKS, ALZHEIMER'S WALKS, AND OUT OF THE DARKNESS WALKS IN HER CHURCH UNDER THEIR TEAM, THE BROOK HILL HOLY WALKERS. SHE HAS DONE ALL OF THIS. SHE RAISES FUNDS FOR ALL THESE ORGANIZATIONS AND SUPPORTS HER CHURCH MEMBERS IN THE TRAINING FOR ALZHEIMER'S. SHE RECENTLY COMPLETED THE TRAINING OUT OF DISTRICT SEVEN FOR CHAPLAINS TO FIRST RESPONDERS ON DISASTER RELEASE AND STRESS MANAGEMENT, WHICH I'M COMPLETELY GRATEFUL FOR BECAUSE WE KNOW HOW HARD OUR FIRST RESPONDERS WORK. ALONG WITH THE TRAINING THROUGH SARAH ON THE HOMELESS DIVERSION PILOT, UM, A COUPLE WEEKS AGO, SHE WENT OUT AND SHE PROVIDED, UH, WORDS OF COMFORT AT OUR ANNUAL HOMELESS MEMORIAL. GINGER HAS WORKED TIRELESSLY. UM, AND THEN HER SCRIPTURE IS SPEAK FOR YOUR SERVANT IS LISTENING. ONE SAMUEL THREE SEVEN. I WANNA THANK GINGER FOR COMING HERE TODAY. ALL HER HARD WORK. WHEN I LOOK AT FAITH-BASED LEADERS THAT WORK TO MAKE A DIFFERENCE IN SAN ANTONIO, GINGER'S ONE OF 'EM. SO I'M GLAD SHE'S HERE TODAY TO SHARE THANK YOU COUNCILWOMAN VIA GRAND FOR INVITING ME AND TO ANNE HELMKE FOR STARTING THE FAITH-BASED INITIATIVE TO COLLABORATE WITH OUR CHURCHES TO HELP PEOPLE IN OUR COMMUNITY. I BELIEVE OUR CHURCHES CAN FUND IDS 100% IF I D P S COULD CREATE A G GIFT CARD FOR THEM TO PURCHASE. UH, THANK YOU TO SS A P D HOPE TEAM. AND THE LAST TIME I WAS HERE, I WAS ASKING YOU GUYS FOR INCREASING THEIR BUDGET, AND YOU DID IT BY 50%. SO THANK YOU FOR MAKING HOMELESS A PRIOR PRIORITY. UM, FINALLY, I'VE OBTAINED PERMISSION. I JUST WANNA ASK PERMISSION, UM, TO GIFT EACH CITY COUNCIL PERSON HERE TODAY WITH A CHAPLAIN TO CALL UPON IN THEIR TIME OF NEED AND PRAYER IN 2022. THIS IS FROM THE INTERNATIONAL FELLOWSHIP OF CHAPLAINS. IT MIRRORS OUR HOMELESS INITIATIVE AND ADOPTING HOMELESS INTO OUR CHURCH FOR SPIRITUAL AND EMOTIONAL SUPPORT. CHAPLAINS CAN GET IN PLACES WHERE OTHERS CANNOT. I LEARNED THIS THE HARD WAY OF MY MOM'S IN THE HOSPITAL FIGHTING C O V I D. AND NIGHT BEFORE LAST, I COULDN'T GET IN TO SEE HER IN THE ER. MY ONLY MY DAD COULD. NEXT MORNING I GET UP THERE BRIGHT AND EARLY AND I SAY, I'M A CHAPLAIN. AND THEY SAID, WE NEED A CHAPLAIN. THERE'S A MAN ASKING FOR ONE. SO I WAS ABLE TO HELP HIM PRAY OVER HIM, AND THEN SEE MY MOM AS WELL. UM, MY HUSBAND EXTENDS HIS BLESSINGS TO EACH OF YOU TODAY. AS HE CANNOT BE HERE, HE IS ALSO HOME FIGHTING COVID. SO WE ARE ALL IN ADVERSITY RIGHT NOW, BUT, UH, OUR LORD JESUS IS STRONG. SO IF YOU'LL JOIN ME, UH, RIGHT NOW, I INVITE YOU TO PRAY WITH ME AT THIS TIME IN REVERENCE TO OUR LORD HEAVENLY FATHER, WE COME TOGETHER TODAY ASKING FOR YOUR GUIDANCE, WISDOM, DIRECTION, AND SUPPORT AS WE BEGIN OUR MEETINGS AND SEEK YOUR WILL IN MEETING THE NEEDS OF THE PEOPLE IN WHICH WE REP EACH REPRESENT, BE OUR GUIDING LIGHT, A LAMP UNTO OUR FEET AS WE PROCEED INTO THIS NEW YEAR OF 2022. HELP US ENGAGE IN MEANINGFUL DISCUSSION. ALLOW US TO GROW CLOSER AS A GROUP AND NURTURE THE BONDS OF OUR COMMUNITY AS FEAR GRIPS OUR COUNTRY, OUR CITY. LET US CHOOSE LOVE AND COMPASSION. LET US LEAD US TO SEEK YOU WITH OUR SPIRITUAL EARS DURING THIS TIME WHEN WE MAY NOT BE ABLE TO EMOTIONALLY GRASP THE MAGNITUDE OF OUR DISASTERS. WE MAY NOT BE PHYSICALLY ABLE TO WRAP OUR ARMS AROUND EACH OTHER. LET US FIND WAYS TO BE THE LOVING EMBRACE OF GOD TO OUR NEIGHBORS. IN THIS TIME OF SOCIAL DISTANCING. SHOW US WAYS TO HELP SUPPORT AND LIFT ONE ANOTHER UP IN THIS TIME OF DARKNESS AND UNCERTAINTY. LET US CHOOSE TO SEE AND BE THE LIGHT FOR OTHERS. JEREMIAH 29 11, FOR THIS IS THE LORD'S DECLARATION FOR I KNOW, THE PLANS I HAVE FOR YOU. PLANS FOR YOUR WELFARE, NOT FOR DISASTER TO GIVE YOU FUTURE AND HOPE. JOSHUA ONE, NINE REMINDS US TO BE STRONG AND COURAGEOUS. DO NOT BE AFRAID OR DISCOURAGED FOR THE LORD. GOD IS WITH YOU WHEREVER YOU GO. EPHESIANS SIX 18 INSTRUCTS US TO PUT ON THE FULL ARMOR OF GOD SO THAT WE MAY STAND STRONG AGAINST THE TACTICS OF THE DEVIL. FOR OUR BATTLE IS NOT AGAINST FLESH AND BLOOD, BUT AGAINST THE RULERS, AGAINST THE AUTHORITIES, AGAINST THE WORLD. POWERS OF THIS DARKNESS AGAINST THE SPIRITUAL FORCES OF EVIL IN THE HEAVENS AND ON EARTH. STAND THEREFORE WITH TRUTH LIKE A BELT AROUND YOUR WAIST, RIGHTEOUSNESS LIKE ARMOR ON YOUR CHEST AND YOUR FEET SANDED WITH READINESS FOR THE GOSPEL OF PEACE. IN EVERY SITUATION, TAKE THE SHIELD OF FAITH, AND WITH IT, YOU WILL BE ABLE TO EXTINGUISH ALL THE FLAMING ARROWS OF THE EVIL. ONE. TAKE THE HELMET OF SALVATION AND THE SWORD OF THE SPIRIT, WHICH IS GOD'S WORD AS WRITTEN WITHIN THE PAGES OF OUR HOLY BIBLE. PRAY AT ALL [00:10:01] TIMES IN THE SPIRIT WITH EVERY PRAYER AND EVERY REQUEST. STAY ALERT IN THIS WITH ALL PERSEVERANCE AND INTERCESSION FOR ALL SAINTS. PRAY ALSO FOR ME AND EACH OF YOU THAT THE MESSAGE MAY BE GIVEN TO YOU WHEN YOU OPEN YOUR MOUTH TO MAKE KNOWN WITH BOLDNESS THE MYSTERY OF THE GOSPEL. FOR THIS, I'M AN AMBASSADOR IN CHAINS. PRAY THAT I MIGHT BE BOLD ENOUGH IN HIM TO SPEAK AND DO AS I SHOULD INTO THIS NEW YEAR, LISTENING TO YOUR LORD JESUS WITH SPIRITUAL EARS TO FIND OUR PURPOSE AND TO BE THE VESSEL OF LOVE TO OTHERS. IN JESUS' NAME I PRAY. AMEN. AMEN. AMEN. THANK YOU VERY MUCH, CHAPLAIN TRAINER. OUR ITEM ON THE AGENDA IS THE APPROVAL OF THE CITY COUNCIL MEETING MINUTES OF DECEMBER 8TH AND NINTH, 2021. I'LL ENTERTAIN A MOTION FOR THOSE MINUTES. SECOND. ALL RIGHT. THERE'S A MOTION BY ROCHA GARCIA, SECOND BY COURAGE. ANY DISCUSSION? HEARING NONE, PLEASE VOTE. MOTION CARRIES. UM, WE'RE GONNA TABLE ITEM FOUR, UH, FOR SCHEDULING CONSIDERATIONS. WE'LL BRING THAT BACK IN A COUPLE WEEKS. UM, WE'RE GONNA MOVE ON NOW TO OUR, UH, CONSENT AGENDA ALONG WITH THE IN INDIVIDUAL ITEMS FOR TODAY, WHICH ARE ITEMS FIVE AND SIX, EVERY AND SIX. EVERYTHING ELSE IS LISTED FOR CONSENT CONSIDERATION. UM, I'LL ASK MY COLLEAGUES NOW IF THERE ARE ANY ITEMS TO PULL FOR INDIVIDUAL CONSIDERATION FROM THE REST OF THE CONSENT AGENDA. AND [CONSENT AGENDA  ] PLEASE NOTE FOR THE RECORD THAT ITEMS 13, 28 AND 29 WILL BE WITHDRAWN. WE'RE PULLING ITEM 26. OKAY. ITEM 26. THANK YOU, MAYOR. ANY OTHERS? ALRIGHT, IF THERE ARE NO OTHER ITEMS TO PULL FOR INDIVIDUAL CONSIDERATION, UM, I'LL ENTERTAIN A MOTION FOR THE BALANCE OF THE CONSENT AGENDA. THAT'S ALL ITEM SAVED FOR FIVE SIX, UH, 26. AND THOSE ITEMS THAT WERE WITHDRAWN, WHICH ARE 13, 28 AND 29, I'LL HEAR A MOTION FOR, UM, THE BALANCE AND CONSENT AGENDA. OKAY. A MOTION BY ROJA GARCIA, SECOND BY VEO HDA. UH, AT THIS TIME WE'LL BRING UP FOLKS WHO HAVE SIGNED UP TO SPEAK ON ITEMS THAT ARE REMAINING ON CONSENT. IF YOU JUST GIMME ONE SECOND. UM, I HAVE, UM, CECILIA CASTELLANO, UM, YOU SIGNED UP FOR ITEM 13, BUT THAT'S BEEN PULLED. WOULD YOU STILL LIKE TO SPEAK ON IT? YES. OKAY. IF YOU GO AHEAD AND COME UP, WE'LL GO AHEAD AND GIVE YOU YOUR TIME ON ITEM 13. AND PLEASE NOTE AGAIN, THIS WILL NOT BE CONSIDERED TODAY. GOOD MORNING, MAYOR. GOOD MORNING. UH, CITY COUNCIL MEMBERS, MY NAME IS CECILIA CASTANO. UM, I'M THE VICE PRESIDENT OF THE FAIR CONTRACTING COALITION, AND I'M ALSO THE PRESIDENT OF AZTECA DESIGNS. TODAY I'M SPEAKING ON ITEM NUMBER 13, WHICH HAS BEEN WITHDRAWN. I WOULD LIKE TO ADDRESS A FEW CONCERNS REGARDING THE JOB ORDER CONTRACT. THE JOB ORDER CONTRACT R F P WAS RELEASED MARCH 25TH, 2021. IN ORDER TO BID THE JOB ORDER CONTRACT, BIDDERS HAD TO PAY $500 TO PROVIDE A PROPOSAL USING FOUR CLICKS THAT WAS NON-REFUNDABLE. TWO YEARS AGO, THE CITY AWARDED THE JOB ORDER CONTRACT TO 10 CONTRACTORS AT $3 MILLION EACH WITH A CONTRACT SUM OF $9 MILLION EACH. TOTAL JOB ORDER CONTRACT $90 MILLION. THIS YEAR, THE CITY IS AWARDING THE JOB ORDER CONTRACT TO ONLY EIGHT CONTRACTORS AT $3 MILLION FOR A TOTAL CONTRACT SUM OF $12 MILLION EACH. TOTAL JOB CONTRACT SUM $96 MILLION. TO DATE, A LITTLE OVER 38% OF OUR SMALL BUSINESSES HAVE CLOSED THEIR DOORS. AND AS YOU CAN HEAR, THE CITY IS DECREASING THE AMOUNT OF CONTRACTOR SELECTED, INCREASING THE AMOUNT OF DOLLARS PER CONTRACTOR. I, ALONG WITH OTHER MEMBERS OF THE FAIR CONTRACTING COALITION, ADVOCATED FOR A SMALL MINORITY WOMAN-OWNED CONTRACTOR BACK IN 2020. I AM CURRENTLY BEING SUED FOR QUESTIONS I ASKED REGARDING [00:15:01] THIS CONTRACT. THIS CONTRACT HAS CREATED REPEATED ISSUES, HAS CREATED CHAOS, AND DOES NOT CREATE OPPORTUNITIES FOR ALL SMALL MINORITY WOMAN-OWNED BUSINESSES. THE JOB ORDER CONTRACT HAS HINDERED MANY BUSINESSES SINCE THERE ARE ONLY SELECTED CONTRACTORS TO DO THE WORK WITH THE CITY OF SAN ANTONIO. WHY DOES THE CITY OF SAN ANTONIO NEED TO HAVE A JOB ORDER CONTRACT IF THE CITY ALREADY UTILIZES COOPERATIVE CONTRACTS THAT SUPPORT THIS TYPE OF WORK? THE CITY ALREADY UTILIZES BY BOARD TIPS AND OTHER COOPERATIVE METHODS FOR, FOR PROCUREMENT. IN ADDITION, THE INDIVIDUALS OVERSEEING THE JOB BOARD OF CONTRACT SHOULD NOT BE PART OF THE EVALUATION COMMITTEE AS IT MAY RESULT IN A CONFLICT OF INTEREST AND WILL NOT HAVE AN UNBIASED OUTCOME. LASTLY, THE PUBLIC WORKS DIRECTORS ALSO REQUESTING TO INCREASE THE TASK ORDER AMOUNT THRESHOLD ISSUED UNDER THE JOB PROGRAM REQUIRING CITY COUNCIL APPROVAL FROM 100,000 TO 250,000. IT IS CRITICAL THAT THE CITY OF SAN ANTONIO PROVIDE OPPORTUNITIES AND SUPPORT OUR LOCAL, SMALL MINORITY WOMEN BUSINESSES THAT HAVE MANAGED TO STAY IN BUSINESS. DESPITE THE CHALLENGES 2020 AND 2021 HAS BROUGHT, THIS PROGRAM IS POTENTIALLY HINDERING OR CREATING MISSED OPPORTUNITIES FOR SWIM BEE'S WILLING, READY, AND QUALIFIED TO PERFORM THESE TASK ORDERS UNDER THE JOB ORDER CONTRACT. I KNOW YOU'RE NOT VOTING TODAY, PLEASE CONSIDER TO VOTE NO IN FAVOR OF THE JOB ORDER CONTRACT, BID OUT ALL PROJECTS. THANK YOU. THANK YOU, MS. CASTANO. ALL RIGHT. AND SPEAKING ON ITEMS 14 AND 15, UH, JACK FINGER JACK, AND AGAIN, THIS IS ITEMS 14 AND 15. I KNOW YOU'RE SIGNED UP FOR OTHER ITEMS. WE'LL BRING YOU UP AT THAT TIME. WELL, MAYOR NURENBERG AND OTHER MEMBERS OF OUR ILLUSTRIOUS SAN ANTONIO CITY COUNCIL FOR THE RECORD, MY NAME IS JACK M. FINGER. YES. I JUST WANNA LET YOU KNOW, I I, I COULDN'T HELP NOTICING ALL THE, UH, THE DISTANCING WE'RE DOING HERE IN THE COUNCIL. UH, NO ACCOUNTING FOR ACQUIRED IMMUNITY. I C WELL, SO WHAT HAPPENS WHEN YOU LET PUBLIC HEALTH BE YOUR REASON FOR TYRANNY? UM, A COUPLE ITEMS WISH TO BRING TO YOUR ATTENTION ON THIS PORTION OF THE AGENDA ITEM, UH, 14 IS AN ORDINANCE RENEWING A FIVE YEAR RIVER WALK BALCONY LEASE WITH LANDRY SEAFOOD, AN OYSTER BAR IN SAN ANTONIO. UM, I DON'T KNOW HOW MANY HUNDREDS OF THOUSANDS OF DOLLARS THAT, UH, CONTRACT IS WORTH, BUT, UM, I WAS DOING A LITTLE BIT OF, UH, RESEARCH IN THE BACKUP DOCUMENTS, AND I NOTICED THAT A NUMBER OF YOU HAVE RECEIVED CAMPAIGN FINANCE CONTRIBUTIONS FROM THE OWNERS AND SHAREHOLDERS OF LANDRY'S. UH, I, I DON'T, THAT COULDN'T POSSIBLY MEASURE INTO YOUR DECISION TO, UH, SAY YES TO, TO THEIR CONTRACT, WOULD IT? I MEAN, UH, I MEAN, IT'S JUST A MERE, UH, MR. MAYOR BERG, YOU GOT A MIRROR TO $2,000 THERE FOR, FROM THEM. UH, MR. BRAVO GOT 500, UH, UH, MR. JAYLEN MCKEE RODRIGUEZ AND MS. VILLA GRAND. OH, WELL, YEAH. THEY DIDN'T CONSIDER Y'ALL, Y'ALL WORTH ANYTHING THERE, SO THEY DIDN'T GIVE YOU MUCH THERE. UM, UH, MS. RO ROCHA GARCIA GOT 500 SMACKERS. UH, KERRY, SAME THING. YOU DIDN'T GET A, A DIME THERE. UM, MS. HABER GOT ABOUT A THOUSAND, UH, MS. SANDOVAL GOT ABOUT, UH, 500 MR. MR. PALAZ GOT 500. MR. K GOT GOT 500, AND MR. PERRY GOT A THOUSAND. WOO HOO. YES. WELL, UM, I, I DON'T KNOW IF Y'ALL WOULD CONSIDER, YOU KNOW, JUST AVOIDING THE CONFLICT OF INTEREST, THE APPEARANCE OF SUCH AN, UH, JUST ABSTAINING ALL THESE THINGS. WOULD, WOULD YOU, UH, YOU KNOW, JUST, BUT THEN, UH, I GUESS, UH, SINCE IT'S BEING ON THE, ON THE CONSENT AGENDA, I THINK THIS WILL SLIDE FASTER THAT THAN, UH, SANTA'S SLAYED DURING CHRISTMAS. THERE, YOU SEE, UM, ALSO OTHER ITEM ON YOUR AGENDA HERE, UM, UH, IS THE ITEM 15 APPROVING A REQUEST FOR ACCEPTANCE OF REIMBURSEMENT FOR, FROM THE NATIONAL BOARD OF EMERGENCY FOOD AND SHELTER PROGRAM FOR, UH, TO REIMBURSE THE, BASICALLY YOU'RE GOING TO REIMBURSE THE, THE CATHOLIC RELIEF SERVICES HERE. YES. I THINK THAT'S WHAT IT IS. UM, FOR WHAT? FOR, FOR THEIR MIGRANT SERVICES. YOU KNOW, A LOT OF US ARE GETTING KIND OF FED UP WITH THE FACT THAT ILLEGAL ALIENS ARE ESSENTIALLY OVERRUNNING US. UH, AND YES, THEY, THEY GO INTO THE COVER OF MIGRANTS AND, UH, BUT NO, UH, [00:20:01] I'M SORRY, THE STATISTICS DON'T LIE. THEY, THEY, THEY SIMPLY SHOULD SAY THAT ABOUT ANYWHERE FROM 50 TO 90% OF THOSE WHO ARE SEEKING ASYLUM DO NOT SHOW UP FOR, FOR THEIR, THEIR HEARINGS THERE. AND, NO, I'M SORRY. UM, THAT ESSENTIALLY Y'ALL ARE ACCOMPLICES TO THIS. THANK YOU MR. FINGER. ALRIGHT, WE'RE GONNA GO INTO COUNCIL DISCUSSION NOW. WE'LL START WITH COUNCIL MEMBER CAB HDA. MAYOR, I JUST WANTED TO HIGHLIGHT ITEM, UH, 17, THANKING ALL THE PEOPLE WHO HAD, UH, APPLIED TO SERVE ON THE, UH, ESSAY HOUSING TRUST BOARD OF TRUSTEES AND, AND THE SAN ANTONIO, UM, HOUSING TRUST FINANCE CORPORATION, ESPECIALLY IN MARELLA MURILLO. SHE'S A DISTRICT SIX RESIDENTS AND A STRONG COMMUNITY ADV ADVOCATE, AS WELL AS A STRONG UNION ADVOCATE. SHE'S PLAYED A, UH, LEADERSHIP ROLES IN THE AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES, WHICH HAPPENS TO BE THE UNION THAT MY LATE MOTHER WAS A, A MEMBER OF. AND AS, UH, AS WELL AS THE SAN ANTONIO CENTRAL LABOR COUNCIL OF THE A F L C I O. I LOOK FORWARD TO HER SERVICE AND THE INPUT SHE WILL BE PROVIDING ON SUCH A VITAL TOPIC. THANK YOU. THANK YOU. COUNCIL MEMBER KIO HDA, COUNCIL MEMBER CASTILLO. THANK YOU, MAYOR. I WANTED TO HIGHLIGHT ITEM 27, THE DEMOLITION DIVERSION FUNDING, UM, FOR THE LAST, UH, FEW MONTHS, UM, COMMUNITY FOR THE LAST FEW YEARS, RATHER, COMMUNITY HAS BEEN COMING FORWARD HIGHLIGHTING THE NOTICES TO VACATE THAT WERE LEADING TO THE DEMOLITION OF OUR MOST AFFORDABLE HOUSING STOCK, UH, WITHIN DISTRICT FIVE. BUT WE KNOW THIS DOESN'T JUST IMPACT D FIVE. THERE ARE MANY OTHER NEIGHBORHOODS THROUGHOUT THE CITY, SO I'M EXCITED TO SEE THAT THROUGH CONSENSUS AND SUPPORT FOR MY COLLEAGUES. THE, THE FUNDING WITHIN THE FISCAL YEAR BUDGET FOR $1 MILLION FOR DEMOLITION DIVERSION PILOT PROGRAM. UH, I AM LOOKING FORWARD TO WORKING WITH MARK AND THE DEVELOPMENT SERVICES DEPARTMENT TO ENSURE THAT WE CREATE A PROGRAM THAT PROVIDES WRAPAROUND SERVICES, UM, TO OUR RESIDENTS THAT ARE AT RISK OF DISPLACEMENT, UH, THROUGH DEMOLITION OF OCCUPIED STRUCTURES. UH, IN ADDITION TO THAT, I WANNA THANK CITY STAFF AND THE TOUR BOARD AS WELL FOR APPROVING THIS FUNDING. AND I AM EXCITED TO HIGHLIGHT THAT THE FEDERAL GOVERNMENT HAS ALSO, UM, APPROVED USING FEDERAL FUNDING FOR DECONSTRUCTION PROGRAMS. UH, BUT IN ADDITION TO THAT, I WANTED TO HIGHLIGHT ITEM 22, THE LOMA VISA APARTMENTS. AND I WOULD LIKE TO THANK THE BOARD AND MY COLLEAGUES FOR SUPPORTING THE INNOVATIVE USE OF AN AFFORDABLE RENTAL FUND FOR THE LOMA VISTA APARTMENTS. THROUGH OUR NEGOTIATIONS, WE WERE ABLE TO PROVIDE 32 AFFORDABLE HOUSING UNITS AT DEEP AFFORDABILITY LEVELS FOR FAMILIES MAKING UP TO 30 AND 50% OF THE AVERAGE AREA MEDIAN INCOME. THIS WILL PROVIDE HOUSING FOR FAMILIES EARNING AN INCOME OF $14,000. THIS WILL ENSURE THAT OUR SINGLE PARENT, FAMILIES, TEACHERS, SENIORS, AND FOLKS ON FIXED INCOMES AND OUR COMMUNITIES CAN AFFORD TO THRIVE IN SAN ANTONIO. THIS PROJECT IS LOCATED CLOSE TO ROSEDALE PARK FOR RECREATION AND HIGH TRANSIT CORRIDOR FOR RESIDENTS TO GET TO AND FROM WORK WITH EASE. THIS PROJECT, UH, IS UNIQUE IN THAT IT HAS SUPPORT WRAPAROUND SERVICES THROUGH THE HOPE CENTER SERVICES, WHICH INCLUDES A FOOD PANTRY, ONE-ON-ONE CASE MANAGEMENT, FINANCIAL LITERACY, AND PLANNING, UH, PARENTING CLASSES RATHER. SO, UH, I, I WANNA THANK THE, THE TEAM FOR THEIR SUPPORT ON THOSE PROJECTS. THANK YOU, MAYOR. THANK YOU. COUNCIL MEMBER. UM, CASTILLO, I NEGLECTED TO CALL UP ONE OTHER CITIZEN WHO WAS LISTED HERE AS ON ITEM 15. SO LET ME CALL UP DENISE OJEDA. IS MS. OJEDA HERE? OKAY. WELL, I APOLOGIZE FOR NOT CALLING THAT AS A MINUTE AGO, BUT LET ME CONTINUE ON WITH OUR COUNSEL DISCUSSION. WE'LL GO NOW TO COUNCIL MEMBER COURAGE. THANK YOU, MAYOR. I JUST WANTED TO MAKE A COMMENT ON A COUPLE OF ITEMS ON THE AGENDAS. UH, ONE WAS WITHDRAWN, 28 AND 29. THE OTHER IS STILL ON THERE, 30 AND 31. AND THESE, UH, REVOLVED AROUND, UM, PIS, PUBLIC IMPROVEMENT DISTRICTS, UH, OUTSIDE OF THE CITY LIMITS. AND I JUST WANTED TO SHARE MY CONCERN, UH, ABOUT URBAN SPRAWL. AND I THINK IT'S SOMETHING THAT MANY OF US ARE CONCERNED ABOUT. UH, I WOULD SURE LIKE TO SEE MORE DEVELOPMENT COME TO THIS COUNCIL FOR APPROVAL WITHIN THE CITY. AND I THINK THAT, UH, MANY OF US AGREE THAT THERE'S PLENTY OF, OF GOOD LAND TO BE DEVELOPED CLOSER TO THE INFRASTRUCTURE THAT WE HAVE. AND THAT'S WHAT IT'S ALL ABOUT, BECAUSE THE CITY THROUGH SAWS OR C P S NEEDS TO EXPAND THAT INFRASTRUCTURE OUTWARD TO THAT URBAN SPRAWL. AND IT CERTAINLY IS A LOT MORE AFFORDABLE TO CONTINUE TO DEVELOP THAT INWARD, UH, WITH THE, UH, INFRASTRUCTURE WE HAVE. ALSO, THE CITY DOESN'T HAVE THE MECHANISM IT HAD YEARS AGO TO ANNEX PROPERTY TO BRING IT INTO THE CITY SO THAT IT CAN PAY FOR ITSELF AS FAR AS ENJOYING PART OF THE CITY'S INFRASTRUCTURE AND SERVICES. SO, UM, JUST A WORD OF CAUTION ON MY PART THAT WE NEED TO BE SEEING MORE INNER CITY, UH, COMPLETION AND DEVELOPMENT. THANK YOU, MAYOR. [00:25:02] THANK YOU. COUNCIL MEMBER COURAGE. COUNCIL MEMBER. BRAVO. THANK YOU. UH, YOU KNOW, SOME COMMENTS WERE BROUGHT UP ABOUT, I GUESS TYING CAMPAIGN CONTRIBUTIONS TO OUR VOTE TODAY. I JUST WANT TO SAY THAT, UM, I'VE BEEN SO FOCUSED ON THE C P S ENERGY VOTE THAT'S COMING UP TODAY THAT I DIDN'T EVEN KNOW THAT WAS ON THE, ON THE, UH, AGENDA UNTIL LAST NIGHT. AND I'VE HAD ABSOLUTELY NO MEETINGS WITH LANDRYS REGARDING THIS ISSUE. THIS WAS ENTIRELY NEGOTIATED BY THE CITY, BY CITY STAFF. AND SO I DO WANT TO SEND, UH, I GUESS SEND A MESSAGE TO CITY STAFF TODAY, AND THAT IS THAT AS OF 2017, THE CITY OF SAN ANTONIO IS A UNESCO CITY OF GASTRONOMY. AND I THINK THAT'S SOMETHING THAT WE SHOULD BE PROUD OF AND THAT WE SHOULD PROMOTE AND THAT WE SHOULD PROTECT. AND AS A PART OF THAT POLICY, I THINK THAT I WOULD LIKE TO SEE US PRIORITIZE LOCAL, UNIQUE RESTAURANTS, UH, WHEN IT COMES TO OUR PRIME REAL ESTATE. AND SO IT'S NOTHING AGAINST LANDRYS, BUT I THINK THAT IF WE'RE GONNA BE A UNESCO CITY OF GASTRONOMY, WE NEED TO, WE NEED TO BE REALLY HIGHLIGHTING, UH, OUR LOCAL RESTAURANTS. THANK YOU VERY MUCH. THANK YOU. COUNCIL MEMBER BRAVO. COUNCIL MEMBER GRO. UH, THANK YOU. I'LL, I'M GONNA START WITH ITEM 14. UH, AND LORI, THANK YOU FOR YOUR EFFORTS HERE. I KNOW ONE OF THE PROBLEMS WE HAVE ON THE RIVER WALK BEING ON THE BOARD OF VISIT SAN ANTONIO IS WHO CAN ACTUALLY AFFORD TO HAVE RESTAURANTS THERE. UM, LANDRY'S IS, IS A VERY PROFESSIONAL PARTNER THAT IS DOING A GOOD JOB FOR WHAT WE WANT. I, OF COURSE WANT TO SEE MORE, UM, MORE FLAVOR ON THE RIVERWALK, BUT I THINK THAT'S A LARGER DISCUSSION FOR US TO HAVE. SO I, I LOOK FORWARD TO MOVING THIS FORWARD. AND THEN WHEN I TRY TO REMEMBER, BUT WE ALWAYS HAVE BOARDS AND COMMISSIONS COMMITTEE. I WANNA HIGHLIGHT ITEM 18. UH, WE ARE APPOINTING CLARISSA ESPARZA JEEVA TO THE SA 2020 COMMISSION ON EDUCATION. AND SHE DOES, IT DOESN'T JUST LIVE IN DISTRICT THREE. SHE WORKS IN DISTRICT THREE, SO I'M EXCITED ABOUT THAT. AND VENUS VELA, UH, FROM DISTRICT THREE TO THE SA 2020 COMMISSION ON STRENGTHENING FAMILY, UH, AND WELLBEING. AND SHE IS WORKING REALLY HARD WITH STUDENTS, UM, OUT IN, IN ONE OF OUR, UH, COUNTIES, BUT SHE LIVES IN DISTRICT THREE AND IS READY TO SERVE ON THE COMMISSION. AND I JUST, I'M SO PROUD OF THESE TWO WOMEN AND THEY'RE, THEY'RE PUT THEM PUTTING THEIR NAMES FORWARD TO SERVE, AND I JUST WANTED TO HIGHLIGHT THAT. THANK YOU VERY MUCH, MA. MAYOR, IF I MAY, I WANNA REMIND COUNCIL THAT IF SUBSTANTIVE COMMENTS ARE MADE ON THE ITEMS ON, UH, CONSENT, THAT IT SHOULD BE PULLED, UH, HIGHLIGHTED COMMENTS ARE HIGHLIGHTS. IF THERE'S GONNA BE COMMENTS, SUBSTANTIVE COMMENTS ON POLICY, THEN THAT SHOULD BE POLL. SO I WANNA REMIND THE COUNCIL OF THAT. GREAT. THANK YOU ANDY. UM, WE'LL CONTINUE ON WITH, UH, CONSENT DISCUSSION, UH, WITH COUNCIL MEMBER SANDOVAL. THANK YOU, MAYOR. UM, ANDY, WAS THAT A WARNING GOING FORWARD, OR A GO BACK? , DID YOU WANT US TO JUST GO AHEAD AND PULL THOSE? THAT'S GOING FORWARD, COUNCILWOMAN. THANK YOU. ALRIGHT. DARN. OKAY. THANK YOU. NO, ACTUALLY I WANTED TO CHIME IN AND, UH, THANK VERY MUCH THE TWO DISTRICT SEVEN RESIDENTS THAT ARE STEPPING FORWARD TO BE ON TWO OF OUR ADVISORY COMMISSIONS, INCLUDING MR. PHILLIP BEAKLEY, UH, ON THE VETERANS COMMISSION. I KNOW WE'VE HAD A BIT OF A VACANCY THERE FOR, FOR A BIT. AND HE IS, UH, ABSOLUTELY THRILLED AND EXCITED TO SERVE. SO, UH, LOOK FORWARD TO, TO HIS SERVICE ON THAT, AS WELL AS MS. CATHERINE SANCHEZ ROCHA, UH, SHE'S ALSO THE PRESIDENT OF THE JEFFERSON NEIGHBORHOOD ASSOCIATION, WHO WILL BE ON THE, UM, IT'S NOT THE SMALL BUSINESS ADVISORY COMMITTEE, IT'S THE SWIM BEE COMMITTEE, RIGHT? THE SBA COMMITTEE. UH, SO, UH, ACTUALLY GIVEN, UH, YOU KNOW, WE HAD SOME TESTIMONY HERE EARLIER TODAY, AND I, I THINK SHE'S JUST GONNA LOVE BEING ON THAT. SO I THANK YOU, UH, VERY MUCH, MAYOR. THANK YOU. COUNCIL MEMBER SANDOVAL, COUNCIL MEMBER ROCHA GARCIA. THANK YOU, MAYOR. AND I JUST WANTED TO CHIME IN QUICKLY AND, UH, THANK THE FOLKS AT LANDRYS. UM, OVER, UH, BEFORE THE HOLIDAYS CAME AND WENT, THEY HELPED WITH A SPECIAL LITTLE GIRL, UM, WHO WAS SUFFERING FROM LEUKEMIA. AND, UM, THEY, UH, TREATED HER TO, UM, AND HER FAMILY WHO HAD NOT BEEN OUT OF THEIR HOME BECAUSE OF C O V I D, UM, TO SEE THE, THE RIVER WALK LIGHTS. AND SO IT WAS SOMETHING VERY SPECIAL FOR THE FAMILY. AND SO, UM, I CONSTANTLY SEE YOU ALL, UH, GIVING BACK TO THE COMMUNITY. SO I JUST WANTED TO PUBLICLY ACKNOWLEDGE AND THANK THEM FOR HELPING THAT FAMILY HAVE A LITTLE BIT OF A SPECIAL KICKOFF TO THE HOLIDAYS. SO THANK YOU. THANK YOU, MAYOR. THANK YOU. COUNCIL MEMBER ROCHA GARCIA. ALRIGHT, THAT'S OUR DISCUSSION ON CONSENT, UH, AND OUR [00:30:01] HIGHLIGHTS. SO, UH, WITHOUT FURTHER DISCUSSION, WE'LL TAKE UP CONSIDERATION THE BALANCE AND CONSENT AGENDA. THAT'S ALL ITEMS SAVED FOR 5 6, 13, 28, 29, AND 26. PLEASE VOTE. MOTION CARRIES. ALRIGHT, BEFORE WE GO INTO OUR INDIVIDUAL ITEMS TODAY, I DO WANT TO RECOGNIZE A COUPLE OF OUR COLLEAGUES FOR POINTS OF PERSONAL PRIVILEGE. LET ME START WITH COUNCIL MEMBER MCKEE RODRIGUEZ. THANK YOU, MAYOR, AND I APOLOGIZE IN ADVANCE EVERYONE. I'VE, UM, I'M NOT REALLY FEELING MYSELF. I, UH, YESTERDAY WAS IN LAST NIGHT, LATE LAST NIGHT, WAS IN A VERY BAD CAR ACCIDENT. UM, EVERYBODY IS OKAY, BUT TWO CARS WERE VERY, VERY, UH, DAMAGED. UM, BUT THIS IS A VERY, VERY IMPORTANT MEETING AND I REALLY APPRECIATE ALL OF YOU FOR BEING HERE TODAY. UM, ON JANUARY 4TH OF THIS YEAR, DISTRICT TWO AND THE CITY EXPERIENCED A VERY TREMENDOUS LOSS OF A COMMUNITY LEADER. AND TODAY I'D LIKE TO HONOR THE LIFE OF NATHANIEL NATE DAVIS, PAST CHAIR OF THE M L K COMMISSION AND EAST SIDE LEADER, A LONGTIME Y M C A STAFFER AND A SUCCESSFUL COACH FOR YOUTH BASKETBALL AND BASEBALL. AND I'D LIKE TO OFFER THE FOLLOWING RESOLUTION TO THE FAMILY OF NATHANIEL WILLIAM DAVIS. ON BEHALF OF THE CITY OF SAN ANTONIO, TEXAS, PLEASE ACCEPT OUR DEEPEST CONDOLENCES ON THE LOSS OF YOUR LOVED ONE. NATE, AS HE WAS AFFECTIONATELY KNOWN, DEDICATED HIS LIFE TO IMPROVING THE QUALITY OF LIFE FOR THE CITIZENS OF THE ALAMO CITY, SPECIFICALLY THOSE IN CITY COUNCIL. DISTRICT TWO, HE GREW UP IN, WORKED AND LED THE DAVIS SCOTT, Y M C A, WHICH WAS NAMED AFTER HIS FATHER, AND WAS DEDICATED TO ENSURING THAT EVERYONE HAD THE CHANCE TO LEARN, GROW, AND THRIVE REGARDLESS OF AGE, INCOME, ABILITY, ETHNICITY, OR FAITH. AS AN INTEGRAL PART OF THE COMMUNITY, NATE BECAME INVOLVED WITH THE MARTIN LUTHER KING JR. MARCH FROM ITS EARLY BEGINNINGS, AND WAS THE LONGEST SERVING MARCH CHAIR. HE SERVED AS THE COMMISSION CHAIR FOR THE 30TH ANNIVERSARY OF THE SAN ANTONIO M L K MARCH IN 2017. HIS PASSION FOR HELPING INNER CITY KIDS SPURRED HIS EFFORTS TO RAISE FUNDS FOR M L K SCHOLARSHIPS YEAR AFTER YEAR. AND ALTHOUGH HIS PASSING HAS LEFT, AVOID IN YOUR HEARTS, WE HOPE THE FAMILY WILL BE CONSOLED BY THE MEMORIES OF NATE'S EXTRAORDINARY LIFE, HIS IMPACT IN THE COMMUNITY, AND THE LEGACY HE LEAVES. WE KNOW HIS SMILE WILL FOREVER REMAIN ETCHED IN YOUR MEMORY. AND ON BEHALF OF CITY COUNCIL, DISTRICT TWO, IT'S RESIDENTS AND THE DR. MARTIN LUTHER KING JR COMMISSION, WE EXTEND OUR SINCERE SYMPATHY AND PRAYERS OF COMFORT TO THOSE WHO WERE NEAR HIM. AND I'D LIKE TO, UM, HONOR HIS LIFE WITH A MOMENT OF SILENCE. THANK YOU SO MUCH THIS FRIDAY. UM, OR YES, SATURDAY THE 15TH IS, UH, REVEREND MARTIN LUTHER KING JR'S BIRTHDAY, AND THE KING FAMILY IS STARTING A SERIES OF ACTIONS THROUGHOUT THE, THROUGHOUT THE COUNTRY, UM, IN A PROTEST OF RESTRICTIVE VOTING LAWS. AND, UH, WITH THE GOAL THAT ON THE 17TH, WE WILL, UM, ALL OF THAT WILL BE CULMINATED, UM, WITH THE DAY OF ACTION. WE ACTUALLY HAVE, UH, OUR M L K COMMISSION HERE. IF YOU'RE, IF YOU'RE A MEMBER OF THE COMMISSION, CAN YOU PLEASE STAND AND BE RECOGNIZED? THANK YOU SO MUCH. I WANNA SAY THANK YOU TO ALL THE COMMISSIONERS AND THE VOLUNTEERS OF THE 35TH ANNUAL SAN ANTONIO M L K JUNIOR MARCH COMMISSION. OH, Y'ALL CAN SIT DOWN. THANK YOU, . IT'S A, IT, I KNOW IT'S BEEN A VERY, VERY CHALLENGING YEAR, AND EACH OF YOU HAVE SERVED WITH DETERMINATION AND GRACE, NOT JUST THIS YEAR, BUT MANY OF YOU. YEAR AFTER YEAR, THE COMMISSIONER SPENT ALL DAY YESTERDAY FILMING AND CAPTURING THE ESSENCE OF WHAT REVEREND DR. MARTIN LUTHER KING JR. STANDS FOR IN OUR CITY AND AROUND THE NATION TO BE PORTRAYED IN THE VIRTUAL MARCH ON JANUARY 17TH, BEGINNING AT 10:00 AM WE SOUGHT OUT THE MOST TALENTED PRODUCTION CREW AND SAM HOUSTON HIGH SCHOOL GRADUATE YAKE SMITH TO BRING EVERYTHING FROM THE STREETS TO YOUR HOME OR VIEWING WORLD. THE VIRTUAL MARCH LINK WILL ALSO BE ON SAN ANTONIO.GOV/MLK. I'D ALSO LIKE TO RECOGNIZE THAT 7,704 POSITIVE COVID CASES, UH, YOU KNOW, WERE ANNOUNCED YESTERDAY AND ON MONDAY THE 17TH, INSTEAD OF THE PHYSICAL MARCH, WE'RE STILL GIVING YOU AN OPPORTUNITY TO COME TO PITTMAN SULLIVAN PARK, THAT'S 1101 IOWA STREET, UM, TO GET TESTED AND VACCINATED, AS WELL AS TO GIVE BLOOD. FOR THOSE WHO ARE WILLING, WE'LL HAVE A, A PARKING LOT FULL OF VACCINATION POPUP CLINICS, UM, FROM 10:00 AM [00:35:01] TO 3:00 PM AND ONCE YOU'RE BACK SAFE AT HOME, PLEASE TUNE INTO TV V SS A WHO WILL BE CARRYING THE VIRTUAL MARCH AND LIVE PODCASTING THROUGHOUT THE DAY, AND IN ALIGNMENT WITH THE GOALS OF THE KING FAMILY. THE FOCUS OF OUR MARCH THIS YEAR IS TO PROTECT OUR VOTING RIGHTS BY ELIMINATING VOTER SUPPRESSION. AND I'M VERY EXCITED TO SHARE THAT OUR KEYNOTE SPEAKER THIS YEAR WILL BE CRYSTAL MASON, A WOMAN WHO FACED VOTER SUPPRESSION FIRSTHAND BY CASTING A PROVISIONAL BALLOT THAT COST HER EVERYTHING. MS. MASON'S STORY IS A CALL TO SUPPORT AND EDUCATE BLACK AND LATINO COMMUNITIES ABOUT THEIR VOTING RIGHTS. AND MS. MAY MASON WILL BE BROADCAST LIVE, AND HER STORY WILL ALSO BE BROADCAST THROUGHOUT THE DAY. WE ARE STILL ACCEPTING SCHOLARSHIP ENTRIES AND DONATIONS FOR OUR MLK SCHOLARSHIP AWARD AND ENCOURAGE YOU TO GO TO SAN ANTONIO.GOV/MLK TO APPLY. THERE'S A THEME, THE WEBSITE IS SAN ANTONIO.GOV/MLK. THE RAFFLE TICKETS ARE $25, AND THERE ARE MULTIPLE CARS TO CHOOSE FROM IF YOU WIN. AND AS, AS I'VE SAID BEFORE, THE THEME OF THE M L K MARCH THIS YEAR IS FREE TO BE. AND I'M ASKING EACH OF MY COLLEAGUES TO PLEASE PARTICIPATE VIRTUALLY BY SHARING A PHOTO ON SOCIAL MEDIA OF YOU WEARING THE M L K MARCH T-SHIRT ON MONDAY IN HONOR OF THE LEGACY OF REVEREND DR. MARTIN LUTHER KING JR. AND IF YOU HAPPEN TO BE AVAILABLE, PLEASE STOP BY PITTMAN SULLIVAN, STARTING AT 10:00 AM THANK YOU ALL SO MUCH. THANK YOU. COUNCIL MEMBER MCKEE RODRIGUEZ. UM, AND THE WHOLE CITY JOINS, UH, BOTH IN REMEMBRANCE OF NATE DAVIS, WHO IS SUCH A TREASURE TO OUR COMMUNITY, UH, BUT ALSO IN RECOGNIZING, UH, WHAT HAS BECOME ONE OF THE MOST SIGNIFICANT TRADITIONS, UH, AND RECOGNITIONS IN OUR CITY OVER THE LAST 50 PLUS YEARS. AND THAT IS OUR M L K MARCH, WHICH IS THE LARGEST IN THE NATION. SO TO THAT EFFECT, AGAIN, WE INVITE EVERYONE TO, UH, COMMEMORATE MARTIN LUTHER KING JR'S LIFE AND LEGACY AND HIS DREAM, WHICH IS STILL ALIVE. AND I WOULD LIKE TO PRESENT A PROCLAMATION ON BEHALF OF THE CITY OF SAN ANTONIO. WHEREAS THE CITY OF SAN ANTONIO'S, MARTIN LUTHER KING, JR. COMMISSION WILL HOST A VIRTUAL COMMEMORATIVE PROGRAM ON JANUARY 20 17TH, 2022, TO CELEBRATE THE LEGACY OF ONE OF THE NATION'S MOST REVERED CIVIL RIGHTS LEADERS, THE REVEREND MARTIN LUTHER KING JR. AND WHEREAS DR. KING DEDICATED HIS LIFE TO ACHIEVE NON-VIOLENT SOCIAL CHANGE AND ADMONISHED THAT IT IS FAR BETTER TO LOVE THAN HATE TO SEEK JUSTICE RATHER THAN REVENGE AND TO REFRAIN FROM ACTS OF VIOLENCE AGAINST ANY PERSON, GROUP, RACE, OR RELIGION. AND WHEREAS THE MISSION OF THE M L K COMMISSION IS TO PROMOTE HUMAN EQUALITY, THE PRINCIPLES OF NON-VIOLENCE IN THE UNDERSTANDING AND ACCEPTANCE OF RACIAL HARMONY, RESPECT, AND GOODWILL, ALL AS A WAY OF BUILDING COMMUNITY AMONG ALL CITIZENS OF SAN ANTONIO AND ACROSS THE UNITED STATES. AND WHEREAS IN ADDITION TO THE COMMEMORATIVE PROGRAM, THE COMMISSION HAS PARTNERED WITH METRO HEALTH TO PROVIDE C OVID 19 TESTING AND A VACCINATION CLINIC AT PITTMAN SULLIVAN PARK, AND WILL CONTINUE TO LEAD COMMUNITY EFFORTS THROUGHOUT THE MONTH OF JANUARY WITH VARIOUS EDUCATIONAL AND INSPIRATIONAL EVENTS THAT PAY TRIBUTE TO DR. KING. NOW, THEREFORE, I RON NURENBERG, MAYOR OF THE CITY OF SAN ANTONIO, AND RECOGNITION THEREOF, DO HEREBY PROCLAIM MONDAY, JANUARY 17TH, 2022 TO BE DR. MARTIN LUTHER KING JR. COMMEMORATION DAY IN SAN ANTONIO, TEXAS, AND COMMEND THE SAN ANTONIO ELMA KAY JR. COMMISSION FOR THE DEDICATION TO THE WORK AND THE MEMORY OF DR. KING. THANK YOU ALL VERY MUCH. AND WE HAD OUR, OUR COMMEMORATIVE PHOTOS, SO, UH, WE WON'T NEED TO, UM, DISRUPT THE MEETING, UH, WITH THAT RIGHT NOW. SO I'LL GO RIGHT OVER NOW TO COUNCIL MEMBER, UH, PERRY, WITH A POINT OF PERSONAL PRIVILEGE. THANK YOU, SIR. JUST WANTED TO, UH, POINT OUT THAT, UH, THERE'S A BIG BIRTHDAY THIS WEEK AND, UM, UM, JUST TO RECOGNIZE THIS ORGANIZATION THAT HAS BEEN AROUND FOR 176 YEARS, AND THAT IS OUR VERY OWN POLICE DEPARTMENT. SAN ANTONIO POLICE, UH, ARE 176 YEARS OLD NOW, SO, UM, UH, CONGRATULATIONS TO THEM AND THE FINE WORK THAT THEY DO DAY IN AND DAY OUT FOR OUR CITY AND JUST TO RECOGNIZE THEM IN EVERYTHING THAT THEY DO. AND, UM, HAPPY BIRTHDAY TO YOU. THANK YOU, SIR. THANK YOU VERY MUCH. COUNCIL MEMBER PERRY. OKAY, [ACTION ITEMS FOR STAFF BRIEFING] UM, WE ARE GONNA GET ON WITH OUR AGENDA TODAY, UH, IN THE ITEMS REMAINING, WHICH ARE THE INDIVIDUAL ITEMS, FIVE, SIX, AND 26. SO LET ME GO AHEAD AND TURN THE PODIUM OVER THE FLOOR. 25 60. YEAH, ACTUALLY, LET'S GO AHEAD AND HAVE THE CLERK READ THE CAPTIONS ON FIVE AND SIX. ITEM NUMBER FIVE IS AN ORDINANCE AUTHORIZING C P S ENERGY TO ESTABLISH A REGULATORY ASSET FOR ITS 2021 WINTER WEATHER FUEL COST TO BE AMORTIZED OVER A MAXIMUM OF 25 YEARS, AND RECOVERED THROUGH A RETAIL BILL ADJUSTMENT AND AN AUTHORIZING C P S ENERGY TO RECOVER THE FINANCING, LEGAL AND OTHER ALLOWABLE COSTS RELATED TO THE REGULATORY ASSET. ITEM NUMBER SIX, [00:40:01] ORDINANCE APPROVING AN INCREASE OF 3.85% TO THE C P E C P SS ENERGY, ELECTRIC AND GAS BASE RATES SYSTEM AVERAGE EFFECTIVE MARCH 1ST, 2022 TARIFF AMENDMENTS TO IMPLEMENT THE RATE ADJUSTMENTS AND AMENDMENTS TO THE AFFORDABILITY DISCOUNT PROGRAM FOR QUALIFYING LOW INCOME CUSTOMERS. ALL RIGHT, UM, THANK YOU MADAM CLERK. I THINK THE FLOOR IS YOURS NOW, ERIC, SO IF YOU CAN PROCEED. YEP. THANK YOU. UH, GOOD MORNING, MAYOR AND COUNCIL. ITEMS FIVE AND SIX ARE CONSIDERATION OF RATE ADJUSTMENTS FOR C P S ENERGY, AND WE'VE HAD THESE, WE'VE HAD SEVERAL DISCUSSIONS WITH THE COUNCIL THREE B SESSIONS IN DECEMBER, ON DECEMBER 1ST, DECEMBER 8TH AND DECEMBER 15TH. C P SS, IN ADDITION, HAS HELD, UH, 41 TOWN HALLS AND COMMUNITY EVENTS ON THE PROPOSAL. WE'LL BEGIN THE PRESENTATIONS WITH, UH, THE CITY'S CHIEF FINANCIAL OFFICER AND PUBLIC UTILITY SUPERVISOR, BEN GOEL, WHO WILL WALK THROUGH, UH, THE STAFF RECOMMENDATION AND THEN HE WILL PASS IT ALONG TO INTERIM C E O RUDY GARZA. BEN, GOOD MORNING MAYOR AND COUNCIL MEMBERS. SO AS THE MANAGER MENTIONED, WE'RE GONNA COVER ITEMS FIVE AND SIX TOGETHER, MUCH LIKE WE DID IN B SESSION. SO ITEM FIVE AGAIN IS ESTABLISHING A REGULATORY ASSET TO UP TO A BILLION, JUST A LITTLE BIT OVER A A BILLION DOLLARS. THIS IS RELATED TO THE WINTER STORM URI, UM, FUEL AND OTHER RELATED COSTS. UH, IT'S GONNA BE PAID FOR OVER A PERIOD OF TIME, UM, AND WE'RE ONLY GOING TO BE RECOVERING AND, UH, UH, COSTS THAT THEY'VE INCURRED OR PAID TO DATE, UH, ROUGHLY ABOUT $418 MILLION. UH, IT'S APPROXIMATELY 0.8 TENTHS OF AN, UH, PERCENT IMPACT ON THE AVERAGE RESIDENTIAL BILL. UM, IN TERMS OF ITEM SIX, IT IS A, UH, PROPOSED 3.85% BASE RATE INCREASE. THIS IS MEANT TO ADDRESS THE IMMEDIATE FINANCIAL PRESSURES THAT ARE FACING C P SS ENERGY AND TO SUPPORT THEIR OPERATIONS AND MAINTENANCE, UH, PLANS, CAPITAL PLANS, AND THEIR ASSOCIATED FINANCING PLAN. IN TERMS OF THE RATE, UH, AUTHORITY, THE CITY COUNCIL, UH, BECAUSE OF OUR OWNERSHIP OF C P S, YOU ALL HAVE AUTHORITY OVER THE RATES AND UNDER THE CHARTER WE HAVE A ROLE CALLED THE PUBLIC UTILITY SUPERVISOR. UNDER THAT ROLE, UH, WE'RE REQUIRED TO DO A REVIEW OF ANY RATE REQUESTS THAT COME FROM BOTH UTILITIES AND MAKE OUR RECOMMENDATION TO THE CITY MANAGER AND TO YOU ALL AS THE, AS THE THE MAYOR AND COUNCIL. UM, THAT ROLE, UH, CURRENTLY RESIDES WITHIN THE CHIEF FINANCIAL OFFICER POSITION. UH, WE GO THROUGH A COMPREHENSIVE REVIEW. I ACTUALLY HAVE A GROUP, UH, WITHIN OUR FINANCE DEPARTMENT, THE PUBLIC UTILITIES DIVISION. SO WE'VE GOT A STAFF THAT WHEN THESE RATE REQUESTS COME FORWARD, THEY DO A COMPREHENSIVE REVIEW. WE WORK THROUGH THAT WITH THE UTILITY, AND THEN WE PROVIDE A RECOMMENDATION TO, TO YOU ALL. I'M NOT GONNA GO THROUGH EVERYTHING ON THIS SLIDE, BUT YOU CAN SEE THAT WE COVER A LOT OF AREAS AND A LOT OF GROUND WHEN WE'RE LOOKING AT ONE OF THESE RATE CASES COMING FROM A UTILITY. UH, ONCE WE COMPLETE THAT REVIEW, AGAIN, WE MAKE OUR RECOMMENDATION. WE DID, UH, PROVIDE THAT TO YOU ON THE B SESSION ON DECEMBER 8TH. I AM NOT GONNA GO THROUGH ALL THAT DETAIL TODAY. UH, REALLY TRIED TO SHARE A LOT OF INFORMATION WITH YOU THAT DAY. UH, WE CAN CERTAINLY ELABORATE ON, ON TOPICS IF YOU LIKE, UH, UH, THIS MORNING. BUT I'M JUST GONNA HIGHLIGHT A COUPLE OF THINGS, UH, BEFORE I TURN IT OVER TO C P S. SO, IN TERMS, AGAIN, THE REGULATORY ASSET, UM, WE'RE ASKING FOR APPROVAL OF UP TO JUST A LITTLE BIT OVER A BILLION DOLLARS, AGAIN, RELATED TO FUEL AND OTHER COSTS ASSOCIATED WITH WINTER STORM URI. UH, C P SS ENERGY WAS INVOICED ROUGHLY $1 BILLION FOR A ONE WEEK PERIOD. TO PUT THAT IN CONTEXT, THEIR ENTIRE FUEL BUDGET FOR THE ENTIRE FISCAL YEAR, UH, WAS ROUGHLY A BILLION DOLLARS. SO THEY WERE INVOICED IN ONE WEEK, UH, AN EQUIVALENT AMOUNT. UH, TO DATE, THEY'VE PAID APPROXIMATELY $418 MILLION IN WHAT THEY BELIEVE ARE, ARE REASONABLE AND LEGITIMATE COSTS. UM, THIS MECHANISM WILL ALLOW THEM TO RECOVER THAT FROM CUSTOMERS OVER TIME. UH, IT WOULD NORMALLY FUEL IS NORMALLY PASSED THROUGH THE BILL AND ROUGHLY A 30 TO 90 DAY PERIOD, SO IT COMES BACK THROUGH THE BILL. THIS WILL ALLOW C P S TO TAKE THESE COSTS, UH, AND IN THIS CASE, WE'RE ONLY DOING THE $418 MILLION ROUGHLY THAT THEY HAVE PAID TO DATE. THEY WILL DEBT FINANCE THAT OVER A 25 YEAR PERIOD AND RECOVER THAT OVER TIME FROM CUSTOMERS. THAT WILL CERTAINLY HELP MITIGATE THE IMPACT, UH, OF THESE COSTS ON T P S ENERGY, UH, CUSTOMERS. UM, KEY PART OF THIS IS IT DOES NEED TO GET DONE AND ESTABLISHED BEFORE JANUARY 31ST. THAT IS THE END OF CP S'S CURRENT FISCAL YEAR. THEY HAVE BEEN HOLDING THESE COSTS, SO THE ASSET WOULD NEED TO BE ESTABLISHED SO THAT WE CAN, UM, AVOID HAVING THESE COSTS PASSED THROUGH THE CUSTOMERS SO THAT THEY [00:45:01] CAN THEN PROCEED WITH THE DEBT FINANCING. WE ALSO RECOMMENDED THAT THIS RECOVERY THROUGH THE REGULATORY ASSET BE EXEMPT FROM, UH, THE CITY'S 14% CITY PAYMENT. WE ALSO ESTABLISHED UNDER THE ORDINANCE SOME RECOMMENDED PROCEDURES, UH, TO DEAL WITH THE REMAINING ROUGHLY $587 MILLION DOLLARS IN COSTS THAT ARE CURRENTLY BEING DISPUTED BY C P SS ENERGY. UM, WE WOULD REQUIRE THAT CITY COUNCIL BE BRIEFED ON THAT AS THOSE, UH, ITEMS ARE RESOLVED. IF THERE ARE COSTS TO BE RECOVERED, THEN THE PUBLIC UTILITIES DIVISION WILL LOOK AT THAT, UM, AND ENSURE WE UNDERSTAND THE RECOVERY THROUGH THE FUEL ADJUSTMENT, AND THEN WE WOULD PROVIDE THAT INFORMATION TO THE COUNCIL AS WELL. AND THEN ULTIMATELY, UH, BECAUSE IT WOULD BE, AGAIN, DEBT FINANCED, YOU ALL WOULD HAVE TO APPROVE THAT DEBT FINANCING IN THE FUTURE. SO THERE ARE A NUMBER OF CONTROLS THAT ARE IN PLACE UNDER THE ORDINANCE AS IT RELATES TO THE REMAINING, UH, DISPUTED AMOUNTS, UH, RELATED TO WINTER STORM JURY. SO THEN ITEM SIX DEALS WITH A PROPOSED BASE RATE INCREASE OF 3.85%. THAT IS WHAT YOU HAVE UNDER CONSIDERATION TODAY. ON THIS SLIDE, WE'RE JUST SHOWING YOU THE FIVE YEAR RATE PLAN. UM, YOU CAN SEE THE 3.85 LISTED THERE IN FY 23. THAT IS C P S'S UPCOMING FISCAL YEAR. UH, THAT RATE IS PROPOSED TO TAKE EFFECT MARCH 1ST, 2022. UH, WE DID GIVE YOU THE RATE PLAN HERE, 25 FY 25 AND 27. THE AMOUNTS YOU SEE LISTED THERE ARE NOT UNDER CONSIDERATION TODAY. IT IS JUST MEANT TO GIVE YOU AN IDEA OF WHAT, UM, UH, OUR CURRENT RATE PLANNING AND MODELING LOOKS LIKE. UH, THE ONE THING WE KNOW FOR SURE IS THOSE NUMBERS WILL CHANGE AND THEY WILL CHANGE BECAUSE AS YOU GET CLOSER TO F Y 25, YOU'LL HAVE UPDATED FINANCIAL INFORMATION. YOU LOOK AT ECONOMIC ACTIVITY, UM, THERE'S CERTAINLY GONNA BE SOME DECISIONS MADE AROUND THINGS LIKE GENERATION PLANNING AND OTHER THINGS THAT WILL INFLUENCE THAT NUMBER, BOTH, UH, UP AND DOWN. SO IT'S REALLY MEANT TO TO BE A LITTLE BIT OF A GUIDE, BUT IT'S SOMETHING THAT, UH, RECOGNIZES THAT IT'S IMPORTANT THAT WE HAVE AN ONGOING DIALOGUE WITH C P S ENERGY AS WE MOVE THROUGH THESE ISSUES. I ALSO WANNA MENTION AS IT RELATES TO THE BASE RATE INCREASE, UM, YOU ALL DID APPROVE $20 MILLION IN ARPA FUNDING TO PROVIDE UTILITY ASSISTANCE REALLY TARGETED AT LOW INCOME CUSTOMERS, REALLY FOCUSING ON THOSE PAST DUE AMOUNTS, UH, TRYING TO USE THAT FUNDING TO HELP CUSTOMERS GET CAUGHT UP AND ADDRESS THOSE PAST TWO BALANCES. C P S ENERGY CAN CERTAINLY TALK MORE ABOUT THEIR EXTENSIVE EFFORTS TO WORK WITH CUSTOMERS, UH, THOSE UNAFFORDABILITY PROGRAMS AND THOSE NOT ON, ON PROGRAMS TO HELP THEM RESOLVE ISSUES THROUGH PAYMENT PLANS AND HELPING THEM FIND OTHER ASSISTANCE. UH, ADDITIONALLY, THEY DID, UH, INCREASE UNDER THEIR AFFORDABILITY DISCOUNT PROGRAM. THIS IS A PROGRAM THAT'S BEEN IN PLACE FOR A NUMBER OF YEARS. IT PROVIDES A DISCOUNT TO QUALIFYING LOW INCOME CUSTOMERS AND DISABLED CUSTOMERS. THEY INCREASE THE AMOUNT OF THAT DISCOUNT BY $3 AND 84 CENTS, WHICH IS ROUGHLY THE IMPACT ON THE AVERAGE RESIDENTIAL BILL, REALLY TRYING TO MITIGATE OR HELP OFFSET SOME OF THE IMPACT TO OUR LOW INCOME CUSTOMERS. UM, THEY ALSO INCREASE THE FUNDING IN THAT AFFORDABILITY DISCOUNT PROGRAM TO, UH, PROVIDE FUNDING TO INCREASE ENROLLMENT UNDER THOSE PROGRAMS BY ABOUT 14,000 CUSTOMERS. AGAIN, REALLY TRYING TO ADDRESS, UM, THE IMPACT ON OUR MOST VULNERABLE, UH, CUSTOMERS IN SAN ANTONIO. UM, THIS WILL ALSO PROVIDE SOME OPPORTUNITY AND TIME. I'LL GET INTO A RECOMMENDATION AROUND, UH, RATE DESIGN, HOW COSTS ARE RECOVERED FROM CUSTOMERS. UM, THAT'LL BE CERTAINLY A TOPIC THAT THE RATES ADVISORY COMMITTEE WILL BE, WILL BE LOOKING AT CLOSELY IN TERMS OF THE RATE STRATEGY AND, AND THE FOCUS HERE. UM, THIS RATE CASE IS BUILT AROUND, UH, ADDRESSING C P S SYNERGIES, IMMEDIATE FINANCIAL PRESSURES. THERE'S CERTAINLY A NUMBER OF CHALLENGES FACING THE UTILITY. UM, BUT THIS WAS REALLY BUILT AROUND ADDRESSING WHAT WE NEED TO DO CURRENTLY AND PROVIDING TIME FOR SOME OF THE OTHER POLICY ISSUES AND OTHER DISCUSSIONS THAT NEED TO OCCUR. WE'RE GONNA PROVIDE TIME TO DO THAT. UM, WE'RE GONNA, WE WORKED ON REALLY WORKING ON WHAT DO WE KNOW TODAY? THERE ARE A LOT OF UNCERTAINTIES AROUND THINGS LIKE THE PANDEMIC BAD DEBT, UH, WHAT'S GONNA HAPPEN WITH THE REMAINING WINTER STORM URI, DISPUTED COSTS. UM, WE'VE GOT A LOT OF WORK TO DO AROUND THE GENERATION PLANNING SIDE. SO IT FOCUSED ON WHAT DO WE KNOW TODAY, LET'S ADDRESS THE IMMEDIATE FINANCIAL PRESSURES, AND THEN WE'RE GONNA HAVE TIME TO WORK ON SOME OF THESE OTHER ISSUES. THE BENEFITS AGAIN, OF THAT STRATEGY ARE, IT, IT DOES ADDRESS THE IMMEDIATE PRESSURE ON THEIR OPERATING AND CAPITAL BUDGETS. UM, IT DOES PROVIDE A MECHANISM THAT ALLOWS THEM TO RECOVER THE COST THAT THEY HAVE PAID ON AND RELATED TO WINTER STORM URI AND TO DO IT IN A WAY THAT, UH, SPREADS THAT COST OUT OVER A 25 YEAR PERIOD. TRYING TO MITIGATE THAT IMPACT ON, UH, C P SS ENERGY, UH, [00:50:01] CUSTOMERS. IT, AGAIN PROVIDES A RUNWAY OR PROVIDES ADDITIONAL TIME FOR THAT POLICY ANALYSIS TO OCCUR FOR DISCUSSIONS AROUND RATE DESIGN TO OCCUR. AND THEN IT GIVES US TIME TO SEE HOW SOME OF THESE ISSUES EVOLVE, LIKE THE PANDEMIC BAD DEBT, HOW CUSTOMERS ARE ABLE TO CATCH UP, HOW THE COSTS ASSOCIATED WITH WINTER STORM URI, UH, GET RESOLVED. UM, THERE ARE A NUMBER OF THINGS THAT ARE LISTED THERE ON THE RIGHT SIDE THAT I'VE KIND OF ALREADY TOUCHED ON. I WON'T GO THROUGH ALL OF THOSE, BUT THOSE ARE THE KINDS OF THINGS THAT WILL CONTINUE TO BE WORKED ON OVER THE COMING YEARS, AND THAT WILL ULTIMATELY IMPACT RATES. SOME, UH, WILL HAVE A, UH, UH, AN IMPACT IN TERMS OF INCREASING OR POTENTIALLY, UH, CAUSING AN INCREASE IN RATES. SOME WILL TAKE PRESSURE OFF OF RATES AND SOME MAY BE NEUTRAL IN SOME WAYS. UM, THIS NEXT SLIDE JUST TALKS ABOUT AS OWNER OF C P S ENERGY, WE GET 14% OF THEIR GROSS REVENUES. UM, I MENTIONED EARLIER THAT WE WILL NOT BE TAKING, OR WE ARE RECOMMENDING THAT C PAYMENT NOT BE APPLIED TO ANY OF THE RECOVERIES COMING THROUGH THROUGH THE REGULATORY ASSET. WINTER STORM URI WAS OBVIOUSLY AN UNPRECEDENTED EVENT. I MENTIONED THE AMOUNT OF FUEL THAT WAS BILLED IN THAT ONE WEEK PERIOD. UM, WE'RE RECOMMENDING THAT THAT BE WAIVED AND NOT APPLIED TO ANY OF THE RECOVERIES COMING THROUGH THAT REGULATORY ASSET. UH, WE ARE RECOMMENDING THAT THE CITY CONTINUE TO RECEIVE THE 14% ON THE PROPOSED BASE RATE INCREASE. THAT NET IMPACT IS LISTED HERE ON THIS SLIDE. AND I SAY NET IMPACT BECAUSE WE HAVE A VERY LARGE UTILITY BILL AS WELL. SO OUR UTILITY EXPENSES WILL BE GOING UP. SO IF YOU NET THE TWO, THE INCREASE IN REVENUE AGAINST OUR INCREASED PROJECTED INCREASE IN EXPENSES, IT WOULD BE ABOUT $5.2 MILLION FOR THE REMAINDER OF OUR CURRENT FISCAL YEAR, FY 2022. IF YOU TOOK THAT TO A FULL FISCAL YEAR, IT'S JUST UNDER $9 MILLION. I'M GONNA HIGHLIGHT JUST AGAIN, THE RECOMMENDATIONS THAT WE GAVE YOU ON DECEMBER 8TH. AGAIN, WE ARE RECOMMENDING SUPPORT FOR BOTH ITEMS FIVE AND SIX. UH, YOU KNOW, BASED ON OUR WORK WORKING WITH C P S ENERGY, REALLY THROUGH, UM, THE FALL AND WORKING CLOSELY WITH THE STAFF THERE, COLLABORATING, WORKING ON DEVELOPING THIS RATE CASE AT THE 3.85%, ALONG WITH THE RECOMMENDED MECHANISM FOR THE RECOVERY OF THE WINTER STORM URI COSTS THAT HAVE BEEN PAID TO DATE. UH, WE DO RECOMMEND APPROVAL OF BOTH OF THOSE ITEMS. UM, IN TERMS OF A COUPLE OF OTHER RECOMMENDATIONS HERE, WE DID TALK ABOUT RECOMMENDING, UH, A TIMELINE FOR DISCUSSION OF GENERATION PLANNING OPTIONS, BOTH WITH THE BOARD AND THE RATES ADVISORY COMMITTEE, ALONG WITH OTHER, UH, STAKEHOLDERS. UH, THAT IS KEY AND THERE'S ALREADY BEEN A LOT OF CONVERSATION ABOUT THAT TIMELINE. I THINK THAT, UH, THE LAST B SESSION IN DECEMBER, UH, CHAIRMAN REED, UH, WILLIAMS, THE CHAIRMAN OF THE, OF THE RATES ADVISORY COMMITTEE EVEN TALKED ABOUT A PROCESS ON A TIMELINE BY WHICH TO LOOK AT THAT. SO THERE'S BEEN A LOT OF DIALOGUE ON THAT. THAT'S IMPORTANT. WE'VE GOT A COUPLE OF PENDING RETIREMENTS OF A COUPLE OF, UH, GENERATION UNITS, THE BROADENING AND SUMMERS UNITS. WE'VE CERTAINLY GOT SOME DECISIONS UPCOMING AROUND THE SPRUCE COAL PLANTS. AND THEN YOU'VE GOTTA REALLY DEAL WITH, YOU KNOW, POTENTIALLY FUTURE GENERATION CAPACITY OPTIONS. SO THE TIMING OF THOSE DISCUSSIONS IS, IS REALLY IMPORTANT. UM, AND I KNOW THERE'LL BE MORE DISCUSSION ON THAT. WE ALSO RECOMMEND THAT A TI THAT A TIMELINE BE OUTLINED FOR REVIEW OF RATE DESIGN. THERE'S BEEN A LOT OF DISCUSSION AROUND, YOU KNOW, HOW C P S RECOVERS, UH, REVENUES FROM ITS CUSTOMERS, LOTS OF IDEAS, LOTS OF THOUGHTS. UH, THE RATES ADVISORY COMMITTEE WAS CERTAINLY CREATED FOR THAT PURPOSE, AND IT TAKES TIME TO DO THAT. ONE OF THE BENEFITS OF SEPARATING THAT FROM THIS IS THAT WHEN YOU DO RATE DESIGN AND WHEN YOU LOOK AT HOW YOU RECOVER FROM CUSTOMERS, IT'S, IT'S ALMOST LIKE WORKING WITH A BALLOON. IF I'VE GOT $2 BILLION IN COST THAT WE'VE GOTTA RECOVER AT THE END OF THAT EXERCISE, YOU'RE STILL GONNA RECOVER $2 BILLION IN COST. SO IF YOU CHANGE THE IMPACT TO ONE CLASS, IT MOVES ELSEWHERE. SO IT'S LIKE PUSHING ON A BALLOON, THAT COST IS GONNA MOVE TO SOME OTHER AREA. IF YOU DO THAT IN COMBINATION WITH A RATE INCREASE, IT GETS A LITTLE HARDER, A LITTLE MESSIER TO SEE HOW ARE THINGS AFFECTING DIFFERENT GROUPS AND DIFFERENT CUSTOMER CLASSES AS YOU STUDY THAT. UM, THIS WOULD ALLOW THAT TO BE DONE OUTSIDE OF A RATE INCREASE WHERE YOU CAN REALLY HAVE A LOT OF VISIBILITY INTO WHAT'S HAPPENING WITH DIFFERENT CUSTOMER GROUPS, UM, AS, UH, AS YOU LOOK AT DIFFERENT OPTIONS. AND AS YOU STUDY THAT, THAT IMPACT. A COUPLE OF OTHER QUICK, UH, RECOMMENDATIONS. WE DID RECOMMEND THAT THEY STUDY TOTAL COMPENSATION LEVELS TO INCLUDE PENSION AND BENEFIT PLANS. UM, WE CERTAINLY UNDERSTAND THAT IT'S IMPORTANT THAT C P S ENERGY BE ABLE TO RECRUIT AND MAINTAIN TALENT, BUT WE ALSO THINK THAT'S GOTTA BE BALANCED AGAINST, UH, THE FACT THAT THEY ARE A PUBLIC UTILITY. A COUPLE OF, UH, MORE DETAILED THINGS HERE THAT I'M NOT GONNA GO INTO A LOT OF DETAIL ON, BUT, UM, WE DID RECOMMEND TO THE STAFF THAT THEY LOOK AT HOW THEY DEAL [00:55:01] WITH THEIR PENSION EXPENSE AS IT RELATES TO GAP. UM, I'M NOT GONNA TRY TO GO THROUGH THAT AND EXPLAIN THAT, BUT IT DOES CAUSE SOME FLUCTUATION IN THE MODEL. UM, IT'S NOT REALLY SOMETHING THAT IS AFFECTING THIS ONE, BUT IT'S SOMETHING WE WANNA WORK WITH THEM AS WE LOOK AT FUTURE RATE CASES. UM, WE MENTIONED THE FACT THAT THEY'RE MOVING FORWARD WITH A LARGE SCALE REPLACEMENT, A VERY COMPLEX, UH, PROJECT TO REPLACE THEIR OLD, UH, LEGACY SYSTEMS. UH, THIS NEW SYSTEM IS REFERRED TO AS THE DIGITAL ENTERPRISE RESOURCE PLANNING SYSTEM. UM, THE FUNDING IS THERE TO ALLOW THEM TO ASSESS THAT, TO DO A LOT OF THE EARLY WORK OVER THE NEXT TWO YEARS. ONCE THAT WORK IS DONE, THEY'LL HAVE A BETTER IDEA, I THINK, OF THE SCOPE, UH, AND MAGNITUDE OF THAT CHANGE, ALONG WITH THE TIMELINE BY WHICH THAT WILL OCCUR. AND THEN THAT CAN BE, UH, DEVELOPED AND WORKED INTO FUTURE, UH, CAPITAL BUDGETS. WE MENTIONED THE FACT THAT THEY ARE GONNA BE HIRING A LOT OF, UH, STAFF AND PERSONNEL AS THEY WORK TO FILL THEIR VACANCIES. UH, THEY'RE DOWN ROUGHLY A LITTLE OVER 400 POSITIONS AS OF IN DECEMBER. UM, AS THEY WORK TO DO THAT, WE THINK THERE'S AN EXCELLENT OPPORTUNITY FOR THEM TO PARTICIPATE IN THE CITY'S, UH, READY TO WORK WORKFORCE PROGRAM. AND SO WE'RE RECOMMENDING THAT THEY COLLABORATE WITH THE CITY AND, AND THAT PROGRAM. AND THEN THE LAST ITEM HERE IS THAT WE RECOMMENDED THAT THEY DEVELOP A PUBLIC BUDGET DOCUMENT, UM, THAT REALLY OUTLINES THEIR FINANCIAL PLANS FOR THE UPCOMING FISCAL YEAR AND THAT THAT BE POSTED AND MADE AVAILABLE ON THEIR WEBSITE. UM, IN CLOSING, UH, MAYOR AND COUNCIL, I DO WANNA THANK RUDY GARZA, INTERIM PRESIDENT AND C E O, UM, COREY KOSKI, CHIEF FINANCIAL OFFICER, CHAD HOOPIN GARNER, WHO WAS REALLY THE LEAD ON THIS RATE CASE WITH OUR STAFF. UM, AND, AND A LOT OF THE, THE C P S ENERGY TEAM. UH, WE SPENT A LOT OF TIME TOGETHER. MY TIME, MY STAFF SPENT A TON OF TIME WITH THEM OVER THE FALL AS WE WORKED THROUGH THIS CASE. AND, UH, THEY CERTAINLY WERE RESPONSIVE AND, AND WORKING WITH US AND PROVIDING US INFORMATION. SO I WANNA THANK THEM FOR THEIR EFFORTS. AND THEN I ALSO WANT TO THANK MY STAFF. UM, I MENTIONED I'VE GOT A DIVISION IN THE FINANCE DEPARTMENT, FINANCE DEPARTMENT'S LED BY TROY ELLIOTT, OUR DEPUTY CHIEF FINANCIAL OFFICER, BUT I'VE GOT RUSSELL HUFF, AN ASSISTANT DIRECTOR OF REPUBLIC UTILITIES, JEFF PULLIN, OUR ADMINISTRATOR, AND ALL OF THAT STAFF. THEY SPENT A TREMENDOUS AMOUNT OF TIME WORKING ON THIS IN A VERY SMALL WINDOW. UM, AND, AND WE'RE ABLE TO DO A VERY COMPREHENSIVE REVIEW AND, AND, AND HELP DEVELOP THESE RECOMMENDATIONS. SO WITH THAT, UH, MAYOR AND COUNSEL, I'M GONNA TURN IT OVER TO RUDY GARZA, THE INTERIM PRESIDENT AND C E O FOR C P S ENERGY. THANK YOU, BEN. APPRECIATE IT. MR. GARZA, COME ON UP. THANK YOU, MAN. YOU GOT IT. YES, SIR. MAYOR PROTON PERRY, THANK YOU, UH, FOR THE OPPORTUNITY TO, UH, COME BEFORE THE COUNCIL TODAY. UH, I AM GONNA HAVE A BRIEF, BRIEF PRESENTATION, BUT I WANNA MAKE A FEW OPENING COMMENTS FIRST THAT I THINK ARE IMPORTANT, UH, FOR OUR COMMUNITY, UH, TO HEAR THE LEADER OF C P SS ENERGY, UH, SAY, UH, MAYOR AND COUNCIL MEMBERS. I STAND BEFORE YOU TODAY REPRESENTING OUR CLOSE TO 3000 MEN AND WOMEN WHO COME TO WORK, UH, TO SUPPORT OUR COMMUNITY EACH AND EVERY DAY. I WANT TO THANK OUR BOARD CHAIR AND VICE CHAIR FOR BEING, BEING HERE WITH US TODAY. UH, THEY HAVE BEEN ENGAGED THROUGHOUT THIS PROCESS, AND I THINK THAT'S IMPORTANT. UH, AND OF COURSE OUR CITY MANAGER, THE C F O AND, UH, THEIR STAFF, UH, FOR THE COLLABORATIVE PROCESS THAT GOT US HERE, THEY HAVE SPENT PROBABLY MORE TIME THAN THEY HAVE HAD AVAILABLE WITH US TO TRY TO GET THIS RIGHT. UH, AND I KNOW THEY'RE, UH, EXCITED TO SEE US, UH, MOVE ON TO OTHER THINGS AND, UH, GET REFOCUSED ON THE BOND PACKAGE AND THINGS THAT THE CITY HAS TO WORK ON. WE'VE WORKED TOGETHER AT LENGTH, REVIEWING OUR BUDGET AND OUR FINANCIALS TO ARRIVE AT WHAT I BELIEVE IS A NECESSARY AND REASONABLE ASK OF OUR COMMUNITY. AND AS YOU JUST HEARD FROM BEN, WE ARE ALIGNED WITH CITY STAFF ON THIS RECOMMENDATION. WE WERE CHALLENGED TO LOOK AT THIS REQUEST DIFFERENTLY THAN PAST PROCESSES IN TERMS OF ADDRESSING THE IMMEDIATE NEED HERE AND NOW KNOWING THAT FUTURE NEEDS WILL HAVE TO BE ADDRESSED. ONCE COMMUNITY DIALOGUE HAS OCCURRED AND POLICY POLICY DECISIONS HAVE BEEN MADE, THIS WILL DRIVE A NEED FOR US TO COME BACK TO COUNCIL MORE FREQUENTLY IN FUTURE YEARS. THIS RATE INCREASE IS ABOUT OUR ABILITY TO SERVE OUR CUSTOMERS, NOTHING MORE, NOTHING LESS, AND ENSURE THAT WE HAVE THE RESOURCES NECESSARY TO PROVIDE THE FUNDAMENTAL UTILITY SERVICES OUR CUSTOMERS EXPECT AND DESERVE OF US. THE TIMING IS NEVER RIGHT FOR THESE ASKS, BUT IF WE DON'T DO THIS NOW, THERE'LL BE GREATER NEGATIVE IMPACTS IN THE FUTURE. WAITING WILL CALL COST OUR COMMUNITY MORE LATER IN TERMS OF HIGHER RATE INCREASE REQUESTS. AND IF OUR CREDIT RATING IS DOWNGRADED, THAT MEANS HIGHER INTEREST PAYMENTS AND LESS INVESTMENT IN OUR SYSTEM. A NO VOTE DOES NOT PUNISH C P S ENERGY WHIP FOR WINTER STORM URI. IT HURTS OUR CUSTOMERS AND MAKES IT MORE DIFFICULT FOR US TO MAKE THE INVESTMENTS NEEDED TO ENSURE THIS DOES NOT HAPPEN AGAIN. I FULLY UNDERSTAND THERE'S EXTENSIVE WORK TO BE DONE TO REBUILD [01:00:01] TRUST WITH OUR COMMUNITY AND AS THE LEADER OF THIS IMPORTANT COMMUNITY ASSET. AND THAT IS WHAT WE ARE. WE ARE A COMMUNITY ASSET. THAT IS MY FOCUS. I INTEND TO LISTEN AND ACT IN PRESENTING ANALYSIS AND INFORMATION TO OUR BOARD TO MAKE CRITICAL POLICY DECISIONS IN A TIMELY MANNER. DECISIONS ON ACCOUNTABILITY, DECISIONS ON RATE STRUCTURE, DECISIONS ON COMMUNICATION, TRUE PARTNERSHIP GENERATION PLANNING, AND ALL THE ISSUES WE'VE TALKED ABOUT OVER THE LAST TWO MONTHS. WE HAVE HEARD YOU ALL UNDER MY LEADERSHIP, WE SERVE WITH THE ONE TEAM MENTALITY. AND LET ME BE CLEAR, THIS COUNCIL, AS OUR OWNERS, YOU'RE A PART OF THIS TEAM TOO, AND EVERYONE IS ESSENTIAL TO DOING THE JOB WE COLLECTIVELY NEED TO DO TO MEET OUR COMMUNITY'S EXPECTATIONS. IT IS MY COMMITMENT THAT WE'LL BE A MORE TRANSPARENT ORGANIZATION THAT REINFORCES ACCOUNTABILITY WITH THE STRONG ORGANIZATIONAL CULTURE WHILE INCREASING COMMUNITY ENGAGEMENT. THE TONE OF THESE DISCUSSIONS, THEY MATTER. WHAT THE COMMUNITY THINKS OF US IS IMPACTED BY YOUR WORDS. THE MORALE OF OUR WORKFORCE AND THEIR FAMILIES, MOST OF WHOM ARE YOUR CONSTITUENTS, IS IMPACTED BY WHAT OUR OWNER THINKS OF THE JOB THAT WE DO. OUR BOND INVESTORS AND THOSE WHO DECIDE OUR CREDIT RATING ALSO PAY ATTENTION TO THESE DELIBERATIONS. THIS PROCESS HAS BEEN THOROUGH, YET IMPERFECT. WE HAVE BEEN AVAILABLE TO TALK TO ANYONE WHO IS WILLING TO PARTICIPATE TO ANSWER ANY QUESTION PUT TO US. AND WE HAVE ALIGNED WITH OUR CITY PARTNERS TO DO WHAT IS NEEDED NOW TO BEST SERVE OUR CUSTOMERS AND COMMUNITY. ALL WITH CRITICAL FEEDBACK. THE RACK, THEY VOTED 12 TO SIX IN SUPPORT OF OUR, UH, BASE RATE INCREASE, AND THEY VOTED UNANIMOUSLY, UNANIMOUSLY ON THE REGULATORY ASSET. THE C A C VOTE WAS UNANIMOUS ON BOTH, AS WAS THE VOTE OF OUR BOARD OF TRUSTEES. NOW IT'S YOUR TURN. I RESPECTFULLY ASKED THIS COUNCIL TO DO THE DIFFICULT, UNPOPULAR YET COURAGEOUS THING AND SUPPORT C P SS ENERGY AND THE WORK WE ARE RESPONSIBLE FOR IN SERVING OUR COMMUNITY. MAYOR, I'M NOT GONNA RUN THROUGH, I'M NOT GONNA HIT ALL THESE SLIDES, BUT, UH, I DO WANT TO HIT ON A FEW KEY POINTS. THANK YOU, UH, FOR, UH, INDULGING ME IN THAT. IF YOU GO BACK TO 2014, UH, THE, UH, THE CIRCUMSTANCES UNDER WHICH C P S ENERGY OPERATES, UH, HAVE CHANGED PRETTY DRASTICALLY, UH, OVER THOSE EIGHT YEARS. WHEN YOU LOOK AT THE GROWTH, YOU LOOK AT THE INCREASE IN OUR OVERALL SYSTEM DEMAND, UH, THE AMOUNT OF ASSETS, UH, THAT WE HAVE, YOU KNOW, INVESTED IN OVER THAT TIME TO CONTINUE TO SERVE OUR COMMUNITY. YOU KNOW, AS I'VE SAID, YOU KNOW, WE'VE, YOU, WE'VE GOT, YOU KNOW, PEANUT BUTTER SANDWICH WITH THE SAME AMOUNT OF PEANUT BUTTER, BUT THE BREAD'S GETTING BIGGER. UH, THAT, THAT REALLY IS AN ANALOGY THAT EXPLAINS WHAT'S HAPPENING TO US. UH, WE, WE'VE GOT FINITE RESOURCES JUST LIKE EVERYBODY, UH, JUST LIKE EVERYBODY ELSE DOES. WE HAVE TO FIGURE OUT HOW TO MAKE WORK TO SERVE, UH, AN EXPONENTIALLY GROWING COMMUNITY. WE'VE GOT THE THIRD HOTTEST REAL ESTATE MARKET IN THE COUNTRY. THAT'S PRETTY SIGNIFICANT. UH, AND SO, YOU KNOW, WE DO OUR BEST THAT WE'VE DONE OUR BEST TO KEEP UP. UH, BUT, UH, IT'S GETTING TO THE POINT WHERE THAT'S GETTING BEYOND OUR ABILITY TO, TO, TO BE SUSTAINABLY IN FRONT OF OUR TECHNOLOGY IS AGING. YOU'VE HEARD BEN TALK ABOUT THAT. YOU KNOW, WE'RE COUNCILMAN BRAVO AND MY LAST OF NINE TOWN HALLS LAST NIGHT, I THOUGHT HAD A GREAT ANALOGY. WE'RE WORKING ON WINDOWS 2000. I DON'T KNOW WHAT VERSION OF WINDOWS, UH, YOU KNOW, WE'RE AT TODAY. UH, BUT I CAN TELL YOU THAT WINDOWS 2000 IS PROBABLY NOT AS, UH, YOU KNOW, AS, AS SECURE FROM A CYBER PERSPECTIVE AS WHAT, UH, TODAY'S SYSTEMS ARE. AND, AND THAT IS A GREAT ANALOGY, UM, THAT THAT IS WHAT WE'RE DEALING WITH. AND OVER TIME, YOU KNOW, WHEN YOU GET FINANCIALLY, UM, YOU KNOW, IN A FINANCIALLY TYPE POSITION, UH, YOU KNOW, ONE OF THE THINGS THAT WE DO TO TRY TO CONTROL COST IS THAT YOU CUT BACK ON, ON HIRING, YOU KNOW, FOR NON-ESSENTIAL, UH, YOU KNOW, POSITIONS. AND, AND NOW WE'RE, WE FIND OURSELVES BEHIND CLOSE TO 400 EMPLOYEES. UM, SO WHEN YOU ADD ALL THAT UP, UH, YOU ADD, YOU, YOU, YOU PUT ON TOP OF THAT THE PANDEMIC AND THE $130 MILLION OUTSTANDING THAT WE HAVE IN, IN, IN, UH, PAST DUE BALANCES THAT WE'VE BEEN WORKING WITH OUR CUSTOMERS TO TRY TO HELP WITH YOU. YOU TOP, YOU ADD ON TOP OF THAT THE EFFECTS OF WINTER STORM URI, WHICH HAVE BEEN SU SUBSTANTIAL. ALL WE HAVE DONE FOR THE LAST 12 MONTHS, UH, OR 10 MONTHS SINCE FEBRUARY IS LOOK AT WHAT HAPPENED IN FEBRUARY TO TRY TO GET BETTER. UH, AND ALL OF THOSE OF YOU WHO SERVED ON THE C E P COMMITTEE THAT THE MAYOR CREATED, UH, WE HAVE BEEN RESPONSIVE. WE HAVE SUBMITTED OUR ACTION PLANS TO, UH, THE CHAIR OF THE MUNICIPAL UTILITIES COMMITTEE, UH, YOU KNOW, WE WERE MAKING THOSE INVESTMENTS, BUT ALL OF THOSE RECOMMENDATIONS, THOSE COST DOLLARS, UH, AS WELL. UH, AND SO WHEN YOU ADD THAT UP, UH, IT, IT, IT IS A TREMENDOUS AMOUNT OF PRESSURE, UH, ON THE WORK THAT C P S ENERGY HAS TO DO TO SERVE OUR COMMUNITY. [01:05:01] AS BEN MENTIONED, UH, BASE RATE INCREASE BEFORE YOU, TODAY'S 3.85%, THAT'LL RAISE $73 MILLION, UH, FOR, UM, YOU KNOW, THE WORK THAT WE DO, UH, THAT $73 MILLION WILL BE, UH, REALLY GOING TO FOUR BUCKETS. UH, IT WILL PAY FOR INFRASTRUCTURE RESILIENCY, BOTH IN OUR POWER PLANTS THAT WE KNOW WE'RE GONNA HAVE TO CONTINUE, UH, TO, TO REDESIGN REALLY, UH, TO BE PREPARED FOR BOTH SUMMER AND WINTER PEAKS, AS WELL AS THE WORK THAT WE'VE GOTTA DO TO SMALL SMART DEVICES AROUND OUR WIRE SYSTEM TO BE ABLE TO BREAK OUR, OUR, OUR SYSTEM UP WHEN WE, WHEN WE DO HAVE CALLS FROM MURCOTT TO REDUCE LOAD, UH, YOU KNOW, IN FUTURE CRISES, WE WANNA MAKE SURE THAT WE'RE, WE HAVE MAXIMUM FLEXIBILITY, YOU KNOW, AND ONE DAY WE HOPE TO GET FOR THAT, TO GET ALL THE WAY DOWN, UH, TO THE METER. BUT IN THE INTERIM, UM, WE CAN INSTALL DEVICES ON OUR SYSTEM THAT ALLOW TO BREAK UP, YOU KNOW, THESE REALLY BIG NEIGHBORHOODS. COUNCILMAN VRAN, I, I KNOW, UH, THE MISSION D LAGO NEIGHBORHOOD WAS ONE OF THOSE HUGE NEIGHBORHOODS THAT WAS IMPACTED IN A REALLY NEGATIVE WAY. UH, AND, AND, YOU KNOW, THIS INVESTMENT HELPS WITH THAT. WE WILL BE ABLE TO BREAK THAT NEIGHBORHOOD UP IN THE FUTURE AND GET 'EM BACK ON, YOU KNOW, IN A MANNER THAT DOESN'T, YOU KNOW, YOU KNOW, ALLOW THEM TO BE OUT, YOU KNOW, LONGER THAN THEY NEED TO BE, UH, TO ENSURE THAT WE, THAT WHEN WE DO, YOU KNOW, ROTATE OUTAGES, THAT IT'S 15 MINUTES OFF AND SOME AMOUNT OF TIME ON UNDER THAT CIRCUMSTANCE, OUR SYSTEM WON'T BE STRESSED THE WAY IT WAS, YOU KNOW, THIS PAST, UM, THIS PAST WINTER, UH, STORM. SO, UH, INFRASTRUCTURE RESILIENCY, THOSE ARE ALL THE THINGS THAT YOU, YOU AND YOUR CONSTITUENTS HAVE BEEN ASKING US TO FOCUS ON. SO THIS DOESN'T HAPPEN AGAIN. UH, TECHNOLOGY, WE TALKED ABOUT THIS DOESN'T PAY FOR THE REPLACEMENT OF OUR SYSTEM. ALL THIS INVESTMENT DOES IS ALLOWS US TO GET THE PROJECT GOING SO THAT WE CAN COME BACK TO YOU IN A COUPLE OF YEARS AND LET YOU KNOW THAT NUMBER IS $250 MILLION, $300 MILLION. IT IS GONNA BE A BIG INVESTMENT, AND I'M NOT GONNA, YOU KNOW, HIDE FROM THAT. IT'S THE BRAINS BEHIND, UH, THE, YOU KNOW, ALL OF THE C P SS ENERGY OPERATION. WE WE'RE RESPONSIBLE FOR $12 BILLION IN ASSETS. SO, WHEN YOU THINK ABOUT IT IN THOSE TERMS, YOU KNOW, 250, $300 MILLION IS PROBABLY ABOUT RIGHT FOR ALL OF, YOU KNOW, THE, THE SECURITY ASPECTS OF, OF WHAT WE'RE RESPONSIBLE FOR. UH, I, ME, I'VE MENTIONED IT AT ALMOST AT EVERY SINGLE TOWN HALL, WHAT HAPPENED IN FEBRUARY CAN HAPPEN ANY GIVEN DAY WITH ONE BAD ACTOR THAT FINDS A WAY INTO OUR SYSTEM BECAUSE WE HAVE NOT UPGRADED OUR SYSTEM TO, TO SYSTEMS, TO TODAY'S TECHNOLOGY. THOSE ARE REAL RISKS. AND SO THIS IS A CRITICAL INVESTMENT FROM THAT PERSPECTIVE. UH, THE GROWTH OF OUR COMMUNITY, I'VE MENTIONED IT. WE'RE GROWING IN EVERY DIRECTION. I'M SETTING, YOU KNOW, 25 TO 30,000 METERS A YEAR, UH, IN, IN ADDITION TO THOSE WHO ARE ALREADY HERE. SO, UH, WE GOTTA GET AHEAD OF THAT BY BUILDING SUBSTATIONS AND INFRASTRUCTURE THAT IT TAKES TO GET READY FOR THAT GROWTH THAT WE KNOW IS COMING. AND FINALLY, UH, OUR PEOPLE, I WANNA BE CLEAR THAT, THAT PEOPLE INVESTMENT IS INVESTMENT ON THE FRONT, FRONT LINES. THOSE ARE OPERATORS AND ENGINEERS AND ANALYSTS AND ACCOUNTANTS AND, YOU KNOW, LINEMEN AND, YOU KNOW, TECHNICIANS THAT RUN OUR GAS SYSTEM IS THE PEOPLE THAT IT TAKES DAY IN, DAY OUT, THAT SHOW UP AT YOUR HOMES, THAT ARE BEHIND THE SCENES DOING THE PLANNING WORK THAT IT TAKES TO MANAGE OUR SYSTEM. THESE ARE FOLKS THAT WE GOTTA HAVE, UH, TO BE ABLE TO RUN OUR UTILITY EFFICIENTLY. AND WE WANT THE BEST AND BRIGHTEST. WE SHOULDN'T SETTLE FOR TALENT. WE CAN AFFORD, WE WANT THE BEST TALENT TO COME TO C P S ENERGY. 'CAUSE THAT MAKES US THE UTILITY. COUNCILMAN BRAVO THAT YOU, YOU AND I TALKED ABOUT LAST NIGHT. YOU WANT US TO BE A FORWARD-THINKING UTILITY. I GOTTA HAVE THE MOST TALENTED PEOPLE, UH, THAT WE CAN GET. AND WHEN WE TALK ABOUT, YOU KNOW, CREATING GOOD PAYING JOBS IN SAN ANTONIO, THE ENERGY INDUSTRY IS, IS EXACTLY WHERE YOU'RE GONNA BE ABLE TO DO THAT BECAUSE OF THE SKILLSET THAT IT TAKES TO RUN SYSTEMS, UH, OF OUR NATURE. WE ARE THE LARGEST MUNICIPALLY OWNED ELECTRIC AND GAS UTILITY IN THE COUNTRY. THAT IS A SUBSTANTIAL, SUBSTANTIAL RESPONSIBILITY THAT, YOU KNOW, I THINK ABOUT EVERY SECOND OF EVERY DAY. HOW AM I GONNA ENSURE THAT I'M DOING WHAT WE NEED TO DO TO ENSURE C P S ENERGY, YOU KNOW, IS DOING THE RIGHT THINGS LONG TERM FOR US TO BE SUCCESSFUL? SO WHEN YOU ADD ALL THOSE UP, $73 MILLION, UH, WORTH OF INVESTMENT, AGAIN, IT IS A, IT IS A DROP IN THE BUCKET WHEN YOU THINK ABOUT THE TOTAL REVENUE THAT C P S ENERGY, UH, BRINGS IN. YOU KNOW, EVERY YEAR, EVERY YEAR WE BRING IN ROUGHLY 2.8, $2.9 BILLION A YEAR. BUT THESE ARE INCREMENTAL INVESTMENTS THAT WE'VE GOT TO MAKE. AND ABOVE AND BEYOND JUST THE DAY-TO-DAY WORK OF RUNNING OUR SYSTEM, UH, THAT WE BELIEVE ARE, ARE CRITICAL RIGHT NOW, THE REGULATORY ASSET, UH, BEN TALKED ABOUT, UH, WE, WE, UH, WE HAVE PAID $418 MILLION IN WHAT WE BELIEVE TO BE JUST AND REASONABLE, UH, UH, UH, FUEL EXPENSES THAT HAVE TO BE PASSED ON BY THE END OF THIS FISCAL YEAR. UH, WHAT WE'VE PROPOSED IS A THOUGHTFUL WAY TO ENSURE THAT WE'RE NOT ASKING MORE OF OUR COMMUNITY, UH, THAT THEY CAN AFFORD. UH, THAT, UH, AMOUNTS TO ROUGHLY A DOLLAR 26 A MONTH, UH, IN FUEL, UH, ADDITIONAL FUEL EXPENSES. UH, AND WHEN YOU ADD IT ALL UP, UH, FOR THE AVERAGE RESIDENTIAL, UH, CUSTOMER, THAT'S, UH, ROUGHLY $5 AND 10 CENTS A MONTH. IF [01:10:01] YOU USE LESS, BE A LITTLE LESS IF YOU USE MORE, BE A LITTLE MORE FOR OUR BUSINESS CUSTOMERS. UH, IT IS, UH, IS A LITTLE BIT MORE, UH, THAN THAT, AND I'LL GET TO THAT HERE IN A SECOND. UH, BUT, UH, BUT, BUT THAT IS THE BILL IMPACT. UH, I WANNA TOUCH ON AFFORDABILITY. UH, EVERY TIME WE COME TO TO COUNCIL FOR A RATE REQUEST, WE LOOK AT OUR AFFORDABILITY DISCOUNT PROGRAM, UH, TO TRY TO ENSURE THAT WE'RE DOING EVERYTHING POSSIBLE TO TAKE CARE OF THOSE MOST VULNERABLE, UH, IN OUR COMMUNITY. UH, SO WE ARE INCREASING OUR AFFORDABILITY DISCOUNT FROM $12 A MONTH, ROUGHLY, TO A LITTLE OVER $16 A MONTH. THAT PRETTY MUCH BUYS DOWN THE FULL IMPACT OF THE 3.5, UH, UH, EIGHT 5% RATE INCREASE FOR THOSE CUSTOMERS WHO ARE ELIGIBLE, UH, FOR THE AFFORDABILITY DISCOUNT. AND WE ARE INCREASING THE CAPACITY OF THAT PROGRAM BY 14,000 CUSTOMERS. WE BELIEVE THIS IS THE RIGHT THING TO DO FOR A GROWING COMMUNITY. AND SO EVERY TIME WE COME IN FOR A RATE, UH, DISCUSSION, WE ALWAYS TAKE A LOOK AT AFFORDABILITY TO SEE, UH, WHAT WE CAN DO. YOU KNOW, TH THIS ISN'T, YOU KNOW, THIS, IT GETS SPREAD, UH, TO OTHER RESIDENTIAL CUSTOMERS. TO OTHER COMMERCIAL CUSTOMERS, ABOUT $4 MILLION. IT TAKES US, UH, TO DO THIS, BUT, UH, BUT WE BELIEVE, UH, IT'S THE RIGHT THING TO DO. IF YOU LOOK, UH, WE'VE HAD SOME QUESTIONS THAT COME UP IN THE, IN THE, UH, IN THE PREVIOUS SESSIONS. UH, WHAT DOES THE IMPACT LOOK LIKE IF YOU'RE, YOU KNOW, IF YOU USE LESS KILOWATT HOURS, IF YOU USE MORE KILOWATT HOURS, UH, YOU KNOW, WE HOPE OUR CUSTOMERS FIND WAYS, UH, TO BE EFFICIENT AND TO USE LESS. THAT'S GOOD FOR THE SYSTEM. THAT ALLOWS US TO DO REALLY MORE WITH LESS IN TERMS OF, UH, THE AMOUNT OF POWER WE HAVE TO GENERATE TO SERVE, UH, OUR COMMUNITY. SO CERTAINLY, UH, THIS REALLY KIND OF SCALES THAT IMPACT UP OR DOWN, DEPENDING UPON, UH, WHAT CATEGORY THAT YOU, THAT YOU FALL INTO. ON THE COMMERCIAL SIDE, YOU KNOW, I SAID THE, THE NET EFFECT OF OUR RATE INCREASE, UH, ON RESIDENTIAL, ABOUT 3.3% ON THE COMMERCIAL, A LITTLE HIGHER THAN THAT. UH, ROUGHLY, UH, YOU KNOW, 3.7, 3.8%, UH, OVERALL. SO, UH, OUR COMMERCIAL CUSTOMERS CERTAINLY ARE ALSO DOING THEIR PART, UH, TO, UH, YOU KNOW, TO, TO PAY, UH, FOR THESE ADDITIONAL INVESTMENTS AS WELL. CUSTOMER OUTREACH, YOU KNOW, THIS IS THE SLIDE THAT I KNOW, YOU KNOW, REALLY MATTERS TO YOU. HAVE WE DONE WHAT YOU'VE ASKED US TO DO? UH, AND, AND, AND I CAN STAND HERE AND SAY YES. I MEAN, WE, WE'VE, WE, OUR, UH, ERIC MENTIONED 41 EVENTS. WE'VE REACHED IN PERSON, EVEN IN THE MIDST OF THE PANDEMIC. UH, WE'VE BEEN ABLE TO REACH ROUGHLY 19,000 CUSTOMERS, UH, FACE TO FACE. UH, WE HAVE, YOU KNOW, MET WITH, I MEAN, TONS OF ORGANIZATIONS ACROSS, UH, THE COMMUNITY WE'VE MET, YOU KNOW, WITH THE CHAMBERS, WITH THE MANUFACTURING ASSOCIATION. WE'VE MET WITH NEIGHBORHOOD ASSOCIATIONS WHO'VE WANTED US TO COME OUT, UH, AND TALK TO THEM. SO, UH, MY TEAM HAS, HAS REALLY CANVASSED THE COMMUNITY TO TRY TO GET OUT TO, TO, TO GET TO AS MANY CUSTOMERS AS WE POSSIBLY CAN. AND, UM, IF YOU LOOK AT THE SECOND BOX UP ON THE RIGHT HAND SIDE, THE CUSTOMER COMMUNICATION, UH, BOX, WE HAVE ALSO SENT OUT ROUGHLY 2.2 MILLION, UH, MESSAGES. THAT'S EITHER A TEXT MESSAGE, AN EMAIL, UH, UH, AN AUTOMATED VOICEMAIL FOR THOSE CUSTOMERS, UH, WHO, YOU KNOW, MAY BE IMPACTED BY THE DIGITAL DIVIDE IN OUR COMMUNITY. WE'VE SENT DIRECT LETTERS TO THEIR HOMES TO MAKE SURE THAT AT LEAST THEY HAVE AN OPPORTUNITY IF THEY WILL OPEN UP, YOU KNOW, THE LETTER FROM ME AND TAKE A LOOK AT IT TO, TO GET THIS INFORMATION AS WELL. UM, SO WE, YOU'VE ASKED US, YOU KNOW, CAN YOU GET, YOU KNOW, THIS DONE, I'LL TELL YOU, DONE AS MUCH AS, AS, AS, AS WE CAN POSSIBLY DO TO TRY TO, TO TRY TO REACH EVERYONE AGAIN, NOT TO, YOU KNOW, TO, TO GET THEM TO, YOU KNOW, SUPPORT A RATE INCREASE. NOBODY SUPPORTS A RATE INCREASE, AND I UNDERSTAND THAT. UH, BUT WE HAVE WORKED REAL HARD TO TRY TO EDUCATE OUR COMMUNITY ON WHY, WHY IT'S NECESSARY. I WANT TO THANK THE WORK DONE BY THE CITIZENS ADVISORY COMMITTEE AND THE RAID ADVISORY COMMITTEE. UH, THEY BOTH, UH, WERE, YOU KNOW, GAVE US VERY CRITICAL FEEDBACK ON THE THINGS THEY SAW THAT WE NEED TO, TO, TO BE MINDFUL OF AND CONTINUE WORKING ON, WHICH, WHICH HAS NOT BEEN, UH, UH, INCONSISTENT WITH WHAT THIS BODY, UH, HAS TOLD ME DIRECTLY IN OUR THREE B SESSIONS. UM, BUT, UH, BUT, BUT WE DID, UH, WE'RE ABLE TO, TO ACHIEVE SUPPORT, UH, FROM BOTH OF OUR CITIZEN COMMITTEES THAT PROVIDE, UH, OUR BOARD OF TRUSTEES, UH, WITH, UH, WITH INPUT. BEN MENTIONED IT. COUNCILMAN PERRY, YOU AND I HAVE, YOU KNOW, DEBATED THIS POINT MULTIPLE TIMES, AND PROBABLY WE'LL HAVE ADDITIONAL CONVERSATIONS TODAY. UH, AGAIN, THE, THE, THE, THE FUTURE ASKS ARE PLACEHOLDERS. YOU KNOW, I, I DON'T KNOW THAT WE'VE EVER COME IN AND ASK FOR EXACTLY WHAT WE SAID WE WERE GONNA ASK IN A PREVIOUS, UH, RATE REQUEST. THESE ARE PLACEHOLDERS, UH, KNOWING THAT WE HAVE TO COME BACK AND TELL YOU WHAT'S GOING ON MORE FREQUENTLY. YOU GOTTA KNOW WHAT THE FINANCIAL CONDITION OF YOUR UTILITY COMPANY IS SO THAT WE'RE, YOU KNOW, MAKING THE INVESTMENTS THAT WE KNOW ARE NECESSARY IF THE CITY IS GONNA BE IN THIS BUSINESS AT THE END OF THE DAY. SO, YOU KNOW, MY COMMITMENT TO YOU IS, AND, AND I'VE, I'VE HAD THIS CONVERSATION WITH COUNCILMAN COURAGE, UH, THAT WE'LL COME TO THE MUNICIPAL UTILITY COMMITTEE PROBABLY, YOU KNOW, ANNUALLY, AND GIVE YOU AN UPDATE ON WHERE WE'RE AT FINANCIALLY. YOU KNOW, UH, WE CAN KIND OF GAUGE WHETHER OR NOT WE THINK WE MIGHT BE COMING, YOU [01:15:01] KNOW, THE FOLLOWING YEAR OR NOT, AND HAVE A THOUGHTFUL CONVERSATION MORE FREQUENTLY, BECAUSE US NOT COMING BEFORE THIS BODY, UH, HAS BEEN PROBABLY, UH, YOU KNOW, ONE OF OUR BIGGEST GAPS THAT WE GOTTA FIX, UH, IN FIX IN A HURRY. AND, AND, AND, AND I PROMISE YOU THAT, THAT, THAT, THAT WE'LL STAY FOCUSED ON THAT. THIS IS ALL THE FEEDBACK, AND THESE ARE JUST WHAT WE TRIED, TRIED TO DO AT, AT FIRST WHEN WE TRIED TO WORK ON THIS SLIDE. I ASKED, GIVE, GIMME A, A, A BREAKDOWN OF ALL THE FEEDBACK WE'VE GOTTEN BY DISTRICT. AND WHEN I LOOKED AT, AT THAT SLIDE, IT WAS, QUITE FRANKLY, IT WAS THE, THE FEEDBACK WAS PRETTY CONSISTENT ACROSS, UM, YOU KNOW, EVERY COUNCIL MEMBER, WHAT, YOU KNOW, YOU ALL, YOU KNOW, ASKED FOR, YOU KNOW, REALLY THE SAME THINGS AND GAVE US THE SAME FEEDBACK. UM, SO I JUST WANTED TO, TO FLASH THAT WE ARE, WE ARE PAYING ATTENTION TO THE THINGS THAT YOU'VE SAID AND, AND THAT BECOMES OUR WORK PLAN GOING FORWARD, TRYING TO SHOW YOU OUTWARDLY WITH OUR ACTION, YOU KNOW, WHAT, UH, YOU KNOW, THAT WE'RE DOING, THE THINGS THAT YOU'VE ASKED US TO PAY ATTENTION TO GOING FORWARD. IN CLOSING, UH, I'LL JUST SAY IT'S BEEN EIGHT YEARS. EIGHT YEARS IS A LONG TIME WITH THE BUSINESS THAT, YOU KNOW, AS BIG AND AS COMPLEX AS C P SS ENERGY, UH, WITH THE COSTS THAT, YOU KNOW, CHANGE EVERY DAY. YOU KNOW, RIGHT NOW WE'RE GOT SOME HUGE SUPPLY CHAIN ISSUES. YOU KNOW, THINGS LIKE POLES AND TRANSFORMERS AND WIRES, AND ALL THE THINGS THAT WE HAVE TO BUY TO RUN OUR SYSTEM, UH, ARE ABSOLUTELY MORE EXPENSIVE RIGHT NOW BECAUSE THERE'S LIMITED SUPPLY OF THEM. UH, AND SO, UH, SO EIGHT YEARS, QUITE FRANKLY, IS TOO LONG TO GO, UH, TO ASK FOR, UH, OR AT LEAST TO COME IN AND, AND HAVE THIS CONVERSATION. UM, YOU KNOW, IT, IT IS WHAT WE NEED TO ENSURE FINANCIAL S STABILITY, UH, IN THE SHORT TERM. UM, YOU KNOW, WE HAVE ADDRESSED, UH, CUSTOMER, UH, UH, YOU KNOW, TRY TO MITIGATE THE, THE IMPACT ON THOSE CUSTOMERS WHO CAN LEAST AFFORD TO PAY IT. SO, UH, THERE ARE AFFORDABILITY ASPECTS OF THIS THAT I THINK, UH, YOU KNOW, ARE REFLECTIVE OF, UH, THE COMMUNITY THAT SAN ANTONIO IS. UH, AND THE REGULATORY ASSET IS THE RIGHT APPROACH TO MAKING, UH, YOU KNOW, THE, THE, THE RECOVERY OF THOSE, UH, OF THOSE COSTS, YOU KNOW, MANAGEABLE, UH, FOR OUR COMMUNITY. UH, SO WITH ALL OF THE INPUT WE'VE GOT, UH, I THANK YOU FOR THE PROCESS. I KNOW, UH, WE'VE BEEN BEFORE YOU, UH, A LOT. I THINK I COUNTED UP, YOU KNOW, BETWEEN THE TOWN HALLS AND THE THREE B SESSIONS. UH, YOU KNOW, WE'VE INDIVIDUALLY, WE'VE PROBABLY ALL SPENT AT LEAST, UH, 10 HOURS TOGETHER OVER THE LAST TWO MONTHS. UH, AND I APPRECIATE YOU, UH, YOUR PATIENCE AND APPRECIATE YOUR CONSIDERATION TODAY. THANK YOU. THANK YOU VERY MUCH. UH, RUDY, UH, AS WELL AS BEN FOR THE PRESENTATION, UH, BEFORE WE GET INTO OUR COUNCIL DISCUSSION AND CONSIDERATION, WE'RE GONNA GO INTO, UH, PUBLIC COMMENT, AND WE HAVE A NUMBER OF FOLKS WHO HAVE ARRIVED TODAY, UH, WHO HAVE SIGNED UP TO SPEAK ON ITEMS FIVE AND SIX, WHICH WE WILL CONSIDER AND DISCUSS TOGETHER. SO LET ME CALL UP FOLKS IN ORDER OF SIGN UP. I WILL CALL THE FIRST NAME ON THE LIST. I'LL CALL THE NEXT NAME. UH, IF YOU CAN BE PREPARED, COME FORWARD SO WE CAN, UM, GO ON EFFICIENTLY, UH, THROUGH THE MORNING. UH, SO LET ME FIRST CALL. JESUS RAMIREZ. JESUS RAMIREZ. OKAY. NFA CANTU NIN. CANTU. ANTONIO TAYLOR. OKAY. ANTONIO, YOU'LL BE FOLLOWED BY DEANNA DAVILA. GOOD MORNING. I'M HERE TODAY ON BEHALF OF SUNRISE SAN ANTONIO AND OUR COMMUNITY TO SPEAK OUT AGAINST THE PROPOSED 3.85% TAX. SORRY, I CAN'T BREATHE. OH 3.85% TAX, UH, RATE HIKE FOR PROPOSED BY C P S. YOU ALL ARE AWARE OF THE POTENTIAL NEGATIVE CONSEQUENCES OF A RATE HIKE WOULD HAVE IN OUR COMMUNITY. BLACK AND BROWN NEIGHBORS WILL DO, WILL BE DIS DISPROPORTIONATELY AFFECTED BY THIS RATE HIKE, ALONG WITH OUR LOW INCOME FRIENDS AND FAMILY, UM, DUE TO COVID. AT WHAT POINT WERE OUR CITY COUNCIL AND MAYOR REALIZED THAT C P S IS TAKING AWAY, MAKING US PAY FOR THEIR MISTAKES, THEIR LACK OF INSIGHT. A COMPANY THAT FAILS TO PROVIDE TRANSPARENCY AND SUPPORT TO THEIR CUSTOMERS. A COMPANY THAT CONTINUES TO HAVE MISSTEPS THAT COST US BILLIONS OF DOLLARS. CITY COUNCIL HAS THE POWER TO STOP THIS RATE HIKE, AND FIGHT FOR A PROGRESSIVE AND EFFICIENT RATE STRUCTURE THAT WILL BENEFIT RATE PAYERS. CITY COUNCIL HAS THE POWER TO END SPECIAL NEGOTIATED RATES FOR CORPORATIONS AND BUSINESSES, AND PUT OUR COMMUNITY FIRST. WE VOTED THE IN TO ENSURE OUR NEEDS ARE MET. FIRST AND FOREMOST, YOUR CONSTITUENTS ARE WATCHING YOU VOTE ON THIS RATE HIKE. IF YOU VOTE YES, YOU'RE PORTRAYING YOUR CONSTITUENTS AND ARE ALLOWING C P SS TO CONTINUOUSLY USE TAXPAYERS, UM, AS A BOTTOMLESS BANK ACCOUNT TO FIX THEIR [01:20:01] INADEQUATE INFRASTRUCTURES AND A RESPONSIBLE MISTAKES. THIS DECISION WILL NOT BE FORGOTTEN, AND YOU ALL HAVE THE POWER TO DEMAND BETTER FOR ALL OF US. THANK YOU. THANK YOU, MS. TAYLOR. DEANNA DAVILA. DEANNA DAVILA. OKAY. LILLIAN WHITE, MS. WHITE. YOU'LL BE FOLLOWED BY MANUEL VILLA. MS MEMBERS OF CITY COUNCIL. MY NAME IS LILLIAN WHITE, REPRESENTATIVE OF SUNLINE MOVEMENT SAN ANTONIO, AND I AM HERE TODAY TO ASK YOU TO REJECT C P SS ENERGY'S PROPOSED RATE, HIKE, AND DEMAND THAT THEY EQUITABLY REFORM THEIR CURRENT RATE STRUCTURE. WE ARE STILL IN THE MIDST OF A PANDEMIC. THE CURRENT C OVID 19 RISK LEVEL IN SAN ANTONIO IS THAT SEVERE. YOUR CONSTITUENTS ARE RISKING THEIR LIVES TO GO TO WORK AND STRUGGLING TO MAKE ENDS MEET. RAISING THE RATES. NOW, AFTER THE RECENT INHUMANE, RESUMPTION OF DISCONNECTIONS WOULD FURTHER ENDANGER THEIR LIVES. AS A TEACHER, I HAVE SEEN THE HARM THIS WILL INFLICT FAMILIES OF MY STUDENTS ARE ALREADY HAVING TO CHOOSE BETWEEN PAYING UTILITIES AND PAYING THE GROCERY BILL BETWEEN TURNING ON THEIR LIGHTS OR TAKING THEIR CHILDREN TO THE DOCTOR. INCREASING THE RATES NOW ENSURES THAT MANY, MANY MORE FAMILIES WILL FALL PREY TO THESE DISCONNECTIONS. VOTING YES TO THIS RATE HIKE MEANS THAT YOU ARE WILLING TO FORCE MANY OF THE PEOPLE IN SAN ANTONIO, INCLUDING CHILDREN AND SENIORS TO SUFFER THROUGH FREEZING TEMPERATURES WITHOUT ANY MEANS OF STAYING WARM. C P S ENERGY SPOKESWOMAN CHRISTINE PATMAN SAYS THAT SHE KNOWS THIS IS A DIFFICULT TIME TO ASK FOR MONEY, WHICH IS WHY C P S CONTINUES TO HOLD OUTREACH EVENTS AND ASSISTANCE FAIRS. BUT THESE EVENTS WOULD BE FAR LESS NECESSARY IF C P S ENERGY REFORMED THEIR RATE STRUCTURE AND HELD, HELD HEAVY CONSUMERS ACCOUNTABLE FOR THE COST OF PROVIDING THEM SERVICE. CPS ENERGY'S CURRENT RATE STRUCTURE FAVORS THE WEALTHY AND THE WASTEFUL, AND LEAVES LOWER INCOME RESIDENTS STRUGGLING TO COVER THEIR OVERWHELMING COSTS. THE CURRENT PROPOSED HIKE FOR THE INDUSTRIAL AND LARGEST CONSUMERS OF ELECTRICITY WOULD ONLY REQUIRE THEM TO PAY 30% OF THE COST IT TAKES TO PROVIDE THEM WITH UTILITY SERVICE. IN EXTREME CONTRAST, THE PROPOSED HIKE FOR LOWER INCOME, LOWER USAGE RESIDENTS WOULD INCREASE BY ALMOST 30%, MAKING THEM RESPONSIBLE FOR AROUND 70% OF THE COST OF SERVICE. IN THIS WAY, THE PROFITABLE BUSINESSES AND MORE WASTEFUL RESIDENTS ARE HAVING THEIR COSTS SUBSIDIZED BY THE ENERGY CONSERVING AND MOST VULNERABLE RESIDENTS WHO ARE BARELY SCRAPING BY LIVING PAYCHECK TO PAYCHECK. WHEN C P S ENERGY FAILS US IN THE NEXT WINTER STORM, WHICH THEY WILL, THESE RESIDENTS WILL BE THE ONES WHO GO WITHOUT. THESE RESIDENTS WHO HAVE PAID THE MOST FOR THEIR UTILITIES WILL GO WITHOUT C P S ENERGY CLAIMS TO PUT PEOPLE FIRST, BUT THE CURRENT RATE STRUCTURE CLEARLY SHOWS THAT THEY VALUE PEOPLE LAST. IF YOU VOTE TO INCREASE THE RATES WITHOUT EQUITABLE REFORM OF THE RATE STRUCTURE, YOU TWO ARE SHOWING YOUR CONSTITUENTS THAT YOU VALUE PROFIT OVER PEOPLE. THANK YOU. THANK YOU, MS. WHITE MANUEL. VIA MR. VIA. YOU'LL BE FOLLOWED BY AN AQUA GARCIA, MEMBERS OF THE COUNCIL. UH, A FEW MONTHS AGO, I HAD THE PLEASURE OF, UH, SEEING COUNCILMAN PERRY AT A NEIGHBORHOOD ASSOCIATION MEETING. I SAID, MR. PERRY, BACK THEN LAWSUITS WERE BEING FILED LEFT AND RIGHT, AND THAT'S WHAT THE PAPER WAS SAYING. I SAID, I, IT'S A HUGE MESS AND WE'RE GONNA GET STUCK WITH THIS MESS. I DON'T LIKE IT. AND HE SAYS, I AGREE WITH YOU. I DON'T LIKE IT EITHER. THE REASON I DON'T LIKE IT IS 'CAUSE I GREW UP IN A MULTI-GENERATIONAL HOUSEHOLD, AND I SAW FIRST HAND HOW TIGHT MONEY IS AT THESE HOUSEHOLDS. IT WAS A BLESSING BECAUSE I HAD THE CHANCE TO SPEND TIME WITH MY GRANDMOTHER. AND EVERY NOW AND THEN WHEN I WASN'T FEELING WELL, MY GRANDMA WOULD SAY, DRINK THE MEDICINE. TAKE YOUR MEDICINE. WELL, I'M ASKING THE, THE MAYOR AND THE COUNCIL, LET'S TAKE THE MEDICINE AND SUPPORT THE RATE INCREASE. THANK Y'ALL. THANK YOU. MR. VILLA ANAQUA GARCIA BE FOLLOWED BY LEXI GARCIA. OOH, HELLO. GOOD MORNING, COUNSEL. AND I'M HERE ON BEHALF OF SOUTHWEST WORKERS UNION AND IT CLIMATE GOAL. LIKE LIVA, WE SPENT MOST OF LAST YEAR OUT IN THE COMMUNITY OFFERING MUTUAL AID ASSISTANCE AND TALKING TO NA NEIGHBORS ABOUT STRUCTURAL CHANGES WE WANT TO SEE AT C P SS ENERGY. I AM ALSO A MEMBER OF THE RECALL C P SS ENERGY COALITION AND A RESIDENTIAL RATE PAYER FOR DISTRICT TWO. DURING OUR TIME IN THE COMMUNITY, WE WERE ABLE TO CONNECT MANY HOUSEHOLDS TO GOVERNMENT AND CITY RESCUE FUNDS, FOOD AND HOUSING ASSISTANCE. [01:25:01] AND FOR 100 OF OUR MEMBERS, WE FUNDED PAYING DOWN THEIR COMMUNITY UTILITY DEBT BY $20,000. AND WE KNOW FIRSTHAND THAT ALL THE HELP THAT IS OUT THERE AND THAT WE ARE CURRENTLY GIVING TO OUR COMMUNITY IS NOWHERE NEAR ENOUGH. SOME OF OUR COMMUNITY MEMBERS WHO RECEIVED UTILITY ASSISTANCE THROUGH THE CITY TOTALING $400, STILL HAD THOUSANDS OF DOLLARS IN UTILITY DEBT. MANY FACED MULTIPLE CRISES LIKE FOOD INSECURITIES, EVICTION NOTICES, HEALTH ISSUES AND DEBT WITH BOTH SAWS AND C P SS. THIS IS WHY WE CONTINUE TO ASK C P S ENERGY TO PROVIDE A GREATER LIFELINE TO RESIDENTIAL RATE PAYERS STRUGGLING TO KEEP THEIR LIGHTS ON. WE NEED A RESIDENTIAL RESCUE PLAN FOR C P S CUSTOMERS THAT WILL ELIMINATE UTILITY DEBT, EXPAND HOUSING AND WEATHERIZATION PROGRAMS, NOT CUT THEM. WE NEED A FAIR RATE STRUCTURE WHERE EVERYONE PAYS THEIR FAIR SHARE, AND WE NEED TO LOOK UP AND SEE THE BILLOWING SMOKESTACKS AND THE WORSENING AIR QUALITY AND SET A CLOSING DATE FOR THE SPRUCE COLT PLANT. THIS IS WISH THIS ISN'T WISHFUL THINKING. THIS IS COMPLETELY POSSIBLE. WE JUST HAVE TO BE BOLD AND COMMIT TO HELPING EVERYONE, NOT JUST SOME OF US. C P S DUG US INTO THIS HOLE. IT WASN'T JUST THE WINTER STORM. IT WAS YEARS OF COSTLY MISTAKES AND FAILURES TO HEED THE WARNINGS OF WINTER STORMS LIKE WINTER STORM URI. NOW, I'LL PASS IT OVER TO MY COLLEAGUE BONNIE HERNANDEZ. HI. WE HAVE THE POWER TO DEMAND BOTH STRUCTURAL CHANGES ON HOW C P SS PRODUCES DISTRIBUTES AND CHARGES ELECTRICITY. BUT FIRST, WE MUST RESTORE DIGNITY TO C P SS ENERGY. MAKE SURE THAT THE LEGACY YOU LEAVE BEHIND IS ONE THAT DUG US OUT INTO AN EQUITABLE CLIMATE READY FUTURE, AND NOT ONE THAT LEFT FRONTLINE AND MARGINALIZED COMMUNITIES LIKE THE PEOPLE YOU SEE BEFORE YOU BURIED IN THE EMBERS OF FOSSIL FUEL ECONOMY. WE JOINED THE VOICES OF MORE THAN A HUNDRED VOTERS IN D ONE 200 AND D TWO 90, AND D THREE MORE THAN 400 IN D FOUR, A HUNDRED AND D FIVE, A HUNDRED AND D SIX, SEVEN, AND EIGHT. MORE THAN 900 IN D NINE, AND ANOTHER A HUNDRED IN D 10. AND WE CAN FORGET THE MORE THAN 350 WHO SIGNED OUR INLINE PETITION TO ASK THAT YOU VOTE NO ON A RATE INCREASE THAT LOCKS, THAT LACKS TRANSPARENT AND ACCOUNTABLE MEASURES FOR SAFEGUARDING OUR ENERGY FUTURE, RESTRUCTURING OUR RATES, AND PROVIDING AN EXPANDING UTILITY DEBT FOR OUR COMMUNITY. PLEASE DON'T LET C P S ENERGY GET AWAY WITH JUST A SLAP ON THE WRIST FOR THE GROSS MISHANDLING OF OUR PUBLIC UTILITY. THANK YOU VERY MUCH. THANK YOU. GO NOW TO LEXI GARCIA. MS. GARCIA, YOU'LL BE FOLLOWED BY YVONNE HERNANDEZ. HI, COUNT. SORRY. UM, HI COUNSEL. I'M LEXI GARCIA. I'M A MEMBER OF D S A, AN ORGANIZER WITH TEXAS WRITING RISING AND A PART OF THE RECALL C P S COALITION, AS WELL AS A D NINE, UM, RATE PAYER. AND I'M HERE TO SPEAK AGAINST THE RATE INCREASE AND LAY OUT WHY YOU CANNOT TRUST, UM, THE C P S BOARD. AND I WANNA DIRECTLY NOW, UM, CALL OUT SOME OF THE WAYS THAT C P S HAS FALLEN SHORT ON THE PROMISES TO SPECIFIC COUNCIL MEMBERS HERE TO SERIOUSLY RECKON WITH THEIR TRACK RECORD. UM, COUNCILWOMAN SANDOVAL AND OTHERS. WHEN TRUSTEE MEMBER, UM, JOHN STE WAS UP FOR REAPPOINTMENT TO THE BOARD, UM, A LOT OF PEOPLE HERE RIGHTLY PUSHED HIM FOR CHANGE AT C P S, UM, FOR TRANSPARENCY PLAN TO CALL SPRUCE. UM, HE SAID, UM, CHANGE WAS COMING AND WAS EASILY REAPPOINTED BY, UM, MAJORITY FOLKS HERE. COUNCILMAN BRAVO, YOU YOURSELF FOUGHT AGAINST THE LACK OF TRANSPARENCY AT C P S ON COMMITTEE WHILE DRAFTING THE CLIMATE ACTION ADAPTATION PLAN. WHERE IS THE IMPLEMENTATION OF THAT PLAN? AND I KNOW, UM, FOLKS I TRUST UP HERE, LIKE COUNCILMAN MCKEE RODRIGUEZ AND COUNCILWOMAN CASTILLO HAVE ASKED QUESTIONS TO UNDERSTAND JUST HOW THE RIGHT STRUCTURE IS UNFAIR, AND AT TIMES CLEARLY BEING, UM, LED ASTRAY TO MAKE THE REGRESSIVE STRUCTURE SEEM, YOU KNOW, LIKE LESS BAD. UM, THE TRUTH IS, THERE IS NO WAY TO VOTE YES ON THIS, EVEN WITH CONDITIONS THAT WILL ACTUALLY HAVE TEETH AGAINST C P S ENERGY. AND I'M CALLING ON CITY COUNCIL TO INTRODUCE RATE STRUCTURE THAT IS EQUITABLE AND GET A CLOSURE DATE FOR THE SPRUCE COAL PLANT. UM, AND USE YOUR AUTHORITY IN THAT WAY THROUGH CCRS AND, UM, PASS AND GAINING MORE, UM, AUTHORITY OVER C P S. UM, THESE ARE ALL THINGS EACH OF YOU CITY COUNCIL SHOULD, UM, INTIMATELY KNOW ABOUT OUR UTILITY. AND WHEN RUDY GARZA SPEAKS ABOUT LIKE COMING MORE OFTEN, UM, RIGHT NOW, YOU HAVE TO TRUST, UM, YOU KNOW, COUNCILMAN, I'M SORRY, MAYOR RON NUREMBERG, UM, SERVING ON THE, UH, BOARD AND, UM, YOU KNOW, JUST NOT REALLY RELAYING THE INFORMATION. UM, SO WHAT WOULD IT LOOK LIKE IF OUR CITY ELECTED OFFICIALS, UM, UM, HAD MORE [01:30:01] AUTHORITY OVER C P SS, UM, HAD STAFF THAT WERE EXPERTS IN CONSERVATION, NONE OF WHICH ARE CURRENTLY ON THE BOARD OF C P S. UM, SO, UM, YOU ALL HAVE TO PUT YOUR TRUST IN RON SERVING AS, UM, UM, THE EX OFFICIO BOARD MEMBER SHUFFLING PAPERS AND CUTTING CHEAP CONTRACTS WITH BUSINESSES LEAVING THE COST TO US. AND WHEN I SAY COSTS, WE'RE NOT ONLY TALKING ABOUT OUR BILLS, WE'RE TALKING ABOUT THE COST OF HUMAN LIFE AND ABOUT THE COST OF DOING NOTHING, WHICH IS OUR NEIGHBORS, UM, BURNING OR FREEZING TO DEATH AND UNINSULATED UN WEATHERIZED HOMES. UM, SO LAST THING. UM, ONE OF THE LAST THINGS IS, UM, BURNING. I BELIEVE THAT BURNING COAL SHOULD BE EXPENSIVE. UM, AND I DON'T, I'M NOT OPPOSED TO A RATE INCREASE, BUT OUR STRUCTURE RIGHT NOW AS IT IS, UM, I'M REALLY DISSATISFIED AND MANY PEOPLE ARE WITH, UM, HOW, HOW BIG BUSINESSES ARE NOT PAYING THEIR FAIR SHARE. EVERY COUNCIL MEMBER WHO VOTES YESTERDAY IS CHOOSING TO APPROVE OF A HISTORICALLY MISMANAGED FAILURE OF A UTILITY AND A SUSTAINABLE FUTURE AS A HUMAN RIGHT. I HOPE YOU'LL ALL CONSIDER, UM, SERIOUSLY ME AND FOLKS WHO ARE SPEAKING TODAY'S COMMENTS. THANK, THANK YOU, MS. GARCIA, WHO VOTE ON THE RATE INCREASE. THANK YOU. THANK YOU. MS. GARCIA. YVONNE HERNANDEZ. YVONNE HERNANDEZ. OKAY. CHRISTOPHER MAYORGA. MR. MAYORGA, YOU'LL BE FOLLOWED BY ROSE HILL. HI, MY NAME IS CHRISTOPHER MIGA AND I LIVE IN DISTRICT 10. I'M A RESEARCHER AT THE NATIONAL NONPROFIT ORGANIZATION, REWIRING AMERICA, WHERE I STUDY ENERGY, JUSTICE AND PRACTICAL WAYS FOR HOUSEHOLDS AND COMMUNITIES TO ELECTRIFY APPLIANCES AND VEHICLES, ALLOWING THEM TO END THEIR DEPENDENCE ON FOSSIL FUELS. I'M ASKING YOU ALL TO VOTE NO ON THE C P S ENERGY RATE HIKE. THE LONG AND SHORT IS THAT NOW IS NOT THE TIME IN THIS PRESENTATION, C P S ENERGY'S INTERIM PRESIDENT AND C E O ADDRESS WHAT THE ADDITIONAL PROFITS THAT WOULD COME FROM THE RATE HIKE WOULD GO TOWARDS INFRASTRUCTURE, RESILIENCY, TECHNOLOGY GROWTH, AND PEOPLE AS A RESIDENT OF THE CITY. I BELIEVE THESE FOUR AREAS ARE WISE INVESTMENTS. HOWEVER, I BELIEVE C P S ENERGY AND THE CITY OF SAN ANTONIO IS SHORTSIGHTED IN HOW WE CAN INVEST IN THESE FOUR AREAS. I AND MANY OTHER YOUNG PEOPLE FEEL A CONSTANT SENSE OF FEAR AND DREAD DUE TO THE CLIMATE CRISIS CAUSED BY GLOBAL GREENHOUSE EMISSIONS. SCIENTISTS HAVE SOUNDED THE ALARMS FOR DECADES AND MADE IT CLEAR THAT WE ARE OUT OF TIME. I WANT TO REMIND EACH OF YOU THAT WE ARE NOT ONLY CITIZENS OF SAN ANTONIO, BUT ALSO OF THIS PLANET. NOW IS THE TIME TO USE THE AUTHORITY. YOU HAVE TO CHANGE C P SS ENERGY BEFORE FORCING CUSTOMERS TO PAY MORE FOR THEIR ENERGY. WE MUST WORK TOGETHER AS A COMMUNITY TO SHUT DOWN NATURAL GAS AND COAL PLANTS AND REPLACE THEM WITH RENEWABLE SOURCES LIKE WIND AND SOLAR. THIS PROCESS WILL CREATE JOBS, IMPROVE OUR TECHNOLOGY, AND PROVIDE US THE RESILIENCY WE NEED TO GET THROUGH THE CLIMATE CRISIS WE ARE IN. AND IT WILL ALSO LOWER ENERGY BILLS FOR ALL OF OUR CITIZENS. I INVITE YOU ALL INTO THIS ONGOING DIALOGUE AND HOW WE CAN PRESERVE OUR CITY AND PROVIDE A BETTER FUTURE FOR THE CHILDREN OF TODAY. THANK YOU. THANK YOU, MR. GRA ROSE HILL. MS. HILL, YOU'LL BE FOLLOWED BY HENRY ROCHA. GOOD. A NEW MAYOR AND CITY COUNCIL. MY NAME IS ROSE HILL. I'M PRESIDENT OF GOVERNMENT HILL ALLIANCE NEIGHBORHOOD ASSOCIATION. ALSO REPRESENT 31 NEIGHBORHOODS IN DISTRICT TWO, THE D TWO PRESIDENTS ROUNDTABLE. I'M HERE TODAY BECAUSE WE'RE VERY CONCERNED, CONCERNED ABOUT THE RATE INCREASE. WE'RE, UH, WE'RE CONCERNED ABOUT. WE HAD EIGHT YEARS TO PLAN TO PUT A PLAN IN PLACE, UH, FOR THIS ISSUE THAT'S COME UP TODAY. THIS IS LIKE A BUSINESS, AND THIS SHOULD HAVE BEEN ACKNOWLEDGED. A PLAN SHOULD HAVE BEEN IN PLACE, UH, TO BE ABLE TO HELP US GET TO WHERE WE ARE TODAY. UH, OUR SENIORS ARE VERY, WE'RE CONCERNED ABOUT OUR SENIORS. HOW'S THIS GONNA AFFECT OUR SENIORS? ARE THEY GONNA BE ABLE TO PAY THEIR BILL? ARE THEY GONNA HAVE TO CHOOSE BETWEEN THAT OR THEIR MEDICATION? SO WHAT WE ARE ASKING TODAY, AND I DO WANNA THANK C P S, THEY DID COME OUT TO MEET WITH US, UH, SOME OF THEIR LEADERS. WE DID HIT 'EM WITH SOME HARD QUESTIONS AND WE DID GET SOME ANSWERS. BUT AT THE SAME TIME, I THINK WE NEED TO LOOK AT THIS AS PUTTING THE SENIORS EITHER COMING UP WITH A STRATEGIC PLAN, 15% OF THEIR ELECTRIC BILLS, OR PUTTING A FREEZE ON THEIR TAX, ON THEIR, ON THE RATE INCREASE FOR OUR SENIORS. WE CANNOT LET THIS RATE INCREASE IMPACT OUR SENIORS MORE THAN ANYONE ELSE. THOSE SENIORS LIVED ON A FIXED INCOME, ON OXYGEN ON MEDICATION. SO WE NEED TO TAKE THAT INTO CONSIDERATION. THE OTHER THING THAT I WANNA BRING TO YOUR ATTENTION IS MANY, WE WERE, WE KEEP HEARING [01:35:01] ABOUT FINANCIAL PROCESS, FINANCIAL ACCOUNTABILITY. A LOT OF US ON THE EAST SIDE ARE OUR PRESIDENTS AND OUR RESIDENTS. WE'RE SMART, WE'RE INTELLIGENT, AND WE'RE EDUCATED. BUT WHAT WE NEED TO DO IS FOR YOU, OUR CITY COUNCIL, TO CONTINUE TO ASK THIS, THE, THE C P S TO NOT ONLY, UH, INDEPENDENTLY, UH, EXCUSE ME, INTERNALLY, DID THEY DO, UH, THEIR, AN AUDIT OF THEIR C P S, BUT TO DO A THIRD PARTY, UH, INDEPENDENT AUDIT SO THAT WE CAN SEE THE LINE ITEMS THAT IT'S GONNA COST US, THE TAXPAYERS, HELP US CONTINUE TO EDUCATE US AND LET US UNDERSTAND HOW THIS RATE INCREASE IS GONNA AFFECT EVERYBODY. BUT UNTIL WE HAVE CLEAR DOCUMENTATION LINE ITEMS WHERE WE CAN SEE THE NUMBERS, WHERE WE CAN UNDERSTAND AND BE ABLE TO EDUCATE OURSELVES AND TAKE THAT INFORMATION BACK TO OUR COMMUNITY, PLEASE HELP US. AND WORKING TOGETHER AND BUILDING THAT DOCUMENT SO THAT THERE IS OPEN TRANSPARENCY SO THAT THE CITY, THE, THE HINT SAN ANTONIO, THE PEOPLE OF SAN ANTONIO CAN COME BACK AND WE CAN COME BACK TO FOR THE RESPECT AND THE TRUST THAT Y'ALL, THAT WE NEED. AND RIGHT NOW, WE DON'T HAVE THAT. THERE'S RESPECT AND TRUST. IT'S NOT THERE. LET'S BUILD THAT BACK UP AGAIN. BUT WE GOTTA BUILD IT UP TOGETHER. IT'S GOTTA BE TOGETHER. AND THERE'S GOTTA BE TRANSPARENCY. SO I ASK OUR COUNCILMAN AND ALL THE CITY COUNCIL, PLEASE ASK FOR THAT INDEPENDENT AUDIT. COME BACK, LET'S C P S MEET WITH US, CONTINUE TO MEET WITH THE LEADERS OF THE NEIGHBORHOOD ASSOCIATIONS, BECAUSE I THINK SOMEWHERE ALONG THE LINE AND EIGHT YEARS WE DROPPED THE BALL WITHOUT REACHING OUT TO OUR NEIGHBOR ASSOCIATIONS. THOSE ARE THE LEADERS THAT KNOW, BUT MORE THAN ANYONE WHO'S BEING AFFECTED IN THEIR COMMUNITIES AND HOW WE CAN HELP EACH OTHER. THANK YOU. THANK YOU. MS. HILL, HENRY ROCHA. HENRY ROCHA. OH, I'M SORRY, MR. ROCHA. I SEE. I APOLOGIZE. YOU'RE, YOU'RE UP FOR 26. WE GOT THAT COMING UP LATER. I APOLOGIZE FOR THAT. UM, WE'LL, WE'LL NOW GO TO RICHARD PEREZ. SORRY, MR. ROCHA. MR. PERES, YOU'LL BE FOLLOWED BY CHRISTINA RETE. ARE RICHARD, ARE YOU GUYS COMING UP IN A GROUP? YES. MAYOR, I'D LIKE TO REQUEST THAT WE COME UP AS A GROUP AND WE CAN KNOCK IT OUT RELATIVELY QUICKLY. YEAH. SO YOU'LL HAVE NINE MINUTES AS A GROUP. WE HAVE CHRISTINA ALTE AND JR TRAVINO. EXCELLENT. THANK YOU, MAYOR. GOOD MORNING. MY NAME IS RICHARD PETTI. I'M PRESIDENT AND C E O OF THE SAN ANTONIO CHAMBER OF COMMERCE, MAYOR NURNBERGER AND HONORABLE MEMBERS OF THE CITY COUNCIL. UH, I AM JOINED TODAY BY A COUPLE OF MY COLLEAGUES OF THE C E O OF THE NORTH SAN ANTONIO CHAMBER OF COMMERCE, CHRISTINA RETE, AND THE CHAIR ELECT OF THE SAN ANTONIO HISPANIC CHAMBER OF COMMERCE. JARED. TINO. AND THEY'RE HERE PHYSICALLY WITH ME, BUT THERE ARE OTHER MEMBERS OF A COALITION OF BUSINESSES AND INDUSTRIES THAT HAVE COME TOGETHER. WE SUBMITTED A LETTER TO YOU ALL YESTERDAY, AND I'D LIKE TO NAME THEM, UH, WHO SIGNED THE LETTER WITH ME. THEY'RE MARINA GONZALEZ, PRESIDENT AND C E O OF THE SAN ANTONIO HISPANIC CHAMBER OF COMMERCE. UH, AL ARLA, PRESIDENT AND C E O OF THE SOUTH AND WEST CHAMBERS OF COMMERCE. STEPHANIE REYES, C E O OF THE REAL ESTATE COUNCIL OF SAN ANTONIO, RAY CHAVEZ, PRESIDENT, AND C E O OF THE SAN ANTONIO MANUFACTURERS ASSOCIATION. AND LAST BUT NOT LEAST, CHRISTIE SUTTERFIELD, WHO'S THE EXECUTIVE VICE PRESIDENT OF THE GREATER SAN ANTONIO BUILDERS ASSOCIATION. AND WE ARE HERE PHYSICALLY AND VIRTUALLY TO SUPPORT, UH, CPSS RATE INCREASE AND THEIR REGULATORY ASSET REQUEST. WE ARE HERE BECAUSE WE UNDERSTAND THE IMPORTANCE OF THIS RATE INCREASE TO THE OVERALL, UH, WELLBEING OF THIS COMMUNITY. UH, WE BELIEVE IT IS THE RIGHT THING. WE KNOW THAT IT'S DIFFICULT. WE, BUT WE REPRESENT THOUSANDS OF BUSINESSES THAT LITERALLY REPRESENT THAT, EXCUSE ME, EMPLOY THOUSANDS OF EMPLOYEES ALL AROUND THIS CITY AND THIS REGION. AND WE ARE UNITED IN OUR SUPPORT FOR THIS RATE INCREASE. AND I'D LIKE TO TURN IT OVER TO MY COLLEAGUES FOR THEIR COMMENTS. THANK YOU, RICHARD, FOR THE RECORD. CHRISTINA ALDERETE, PRESIDENT AND C E O OF THE NORTH SAN ANTONIO CHAMBER OF COMMERCE. THANK YOU ALL FOR ALLOWING US TO BE HERE TODAY, AND THANK YOU ALL FOR REPRESENTING YOUR CONSTITUENTS SO WELL IN THIS PARTICULAR ISSUE. UM, YOU ALL RECEIVED A LETTER FROM THE NORTH SAN ANTONIO CHAMBER OF COMMERCE JUST AS WELL IN SUPPORT OF THE C P S RATE INCREASE. UM, RICHARD HAS KIND OF SAID EVERYTHING THAT WE'D, WE'D LIKE TO SAY AS A, AS A GROUP, BUT ONE OF THE THINGS THAT I WOULD LIKE TO ADD, UM, I THINK IT IS A GOOD IDEA THAT, UH, C P S HAVE A THIRD PARTY, UH, COME IN AND JUST KIND OF HELP ANALYZE THE, THEIR MANAGEMENT STYLE. C P S HAS, HAS DEFINITELY AGREED, UH, THAT THEY WOULD LIKE TO DO THAT. AND I KNOW SOME OF THE CITY COUNCIL PEOPLE HAVE ALSO EXPRESSED THAT INTEREST AS WELL AS A NORTH SAN ANTONIO CHAMBER. WE WOULD LIKE TO SEE THE SAME. I THINK IT DOES GO A LONG WAY TO TRANSPARENCY AND TO COMMUNICATION WITH THE CITIZENS OF SAN ANTONIO. UM, SO WITH THAT, WE ARE FULLY IN SUPPORT OF THE 3.85 AND PLUS THE, UH, RATE ADJUSTMENT. THANK YOU. GOOD MORNING, MAYOR AND COUNCIL. UH, THANK YOU SO MUCH FOR HAVING US HERE. UH, WANTED TO SHARE MY SUPPORT [01:40:01] AS, UH, CHAIR ELECT FOR THE SAN ANTONIO HISPANIC CHAMBER OF COMMERCE. UH, WE UNDERSTAND AS A SMALL BUSINESS ORGANIZATION, THIS IS A NECESSARY, UH, COMPONENT OF RUNNING A BUSINESS AS A HISPANIC CHAMBER. WE DID WANNA ADD THAT WE DO SUPPORT THE THIRD PARTY AUDIT AS BROUGHT UP BY COUNCILWOMAN, UH, MELISSA CABE HDA. UM, ADDITIONALLY, ONCE WE HAVE THAT, WE'D ALSO LIKE TO SEE A COMMITMENT FROM C P SS TO REGAIN THE TRUST OF THE USERS IN THE CITY. OBVIOUSLY, WE REPRESENT BUSINESSES, BUT I THINK EVERYBODY COULD BENEFIT FROM A RENEWED TRUST FROM OUR LOCAL UTILITY PROVIDER. THAT BEING SAID, THANK Y'ALL FOR YOUR SERVICE. GREAT. THANK YOU VERY MUCH, MAYOR. THANK YOU FOR THE OPPORTUNITY TO VISIT WITH YOU, AND WE ARE HAPPY TO ANSWER ANY QUESTIONS. AND JUST TO PUT A FINE POINT ON IT, EACH OF OUR ORGANIZATIONS HAVE DELVED INTO THIS ISSUE VERY, VERY DEEPLY. WE'VE HAD MANY, MANY PRESENTATIONS INTERNALLY. WE'VE, UH, LOOKED AT THE NUMBERS, WE'VE LOOKED AT THE ISSUE. UH, C P S ENERGY INDIVIDUALS HAVE COME AND, AND WE'VE ASKED THEM HARD QUESTIONS JUST LIKE YOU ALL HAVE. AND WE'VE COME TO THE CONCLUSION THAT THIS IS THE RIGHT THING AND THIS IS THE RIGHT TIME. THANK YOU, SIR. THANK YOU ALL VERY MUCH. OKAY. UM, SO BEFORE WE GET INTO OUR COUNCIL DISCUSSION, NOW, JUST A A BRIEF NOTE. THIS IS THE WAY WE'RE GOING TO DO IT. UH, WE HAVE ONE, WE'RE GONNA HAVE ONE DISCUSSION. OH, I'M SORRY, JACK, I'M ALMOST MISS YOU. I WOULD NEVER DO THAT. JACK, COME ON UP. THREE MINUTES. WELL, MAYOR NURENBERG, OTHER MEMBERS OF OUR ILLUSTRIOUS SAN ANTONIO CITY COUNCIL FOR THE RECORD, MY NAME IS JACK M. FINGER, YOU KNOW, THE, UH, I WOULD SUGGEST EVERYONE GOOGLE THE PHRASE C P S RATE PAYER SCANDAL. THAT'S RIGHT. C P S RATE PAYER SCANDAL. AND YOU'LL BE ABLE, YOU, ESPECIALLY THE CITY COUNCIL, GOOGLE THAT. SO YOU'LL BE ABLE TO SEE WHAT, UH, UM, THE FULL ARTICLE I'M ABOUT, ABOUT TO PRESENT. C P S USED TO BE KNOWN AS A STERLING UTILITY. MY DAD WORKED FOR THEM BACK IN THE FIFTIES AND SIXTIES. HE WAS THEIR PR MAN. HE, HE'S PROBABLY ROLLING IN HIS GRAVE OVER ALL THE SCANDALS RIGHT NOW. THE, UH, THE MR. ACOSTA, I MEAN, MR. RUDY GARZA CAME UP HERE A LITTLE WHILE AGO AND MENTIONED HOW IT'S GONNA BE TOUGH, TOUGH. BUT IT'S GOTTA BE DONE. THE, THE, THESE EXTRA DOLLARS COMING IN FROM US, THE RATE PAYERS, NO, I'M SORRY. IT DOESN'T WORK THAT WAY. UH, LET'S LOOK AT SOMETHING RIGHT HERE. MR. WHAT MAN, SHOW THAT. PUT THAT RIGHT THERE. JUST, JUST LOOK AT THE HEADLINE RIGHT THERE. RATE PAYER SCANDALS 700 STAKE DINNERS 100 PLUS RUSH TRIPS IN THE DOWNFALL OF A C P S EXECUTIVE. PUT THAT ONE UP THERE. WHINING AND DINING ON THE PUBLIC'S DIME. IT, UH, DETAILS SOME OF THE, UH, EXTRAVAGANCE THERE. WHAT'S THE NEXT ONE HERE? YEAH, IT'S SPECIAL HEADPHONES AND A $700 DRIVE TO THE AIRPORT. YEAH, THAT'S WHAT ONE OF THE, ONE OF THE CP SS MEMBERS WAS STAFFERS WAS DOING THIS ETHICS COMPLAINTS OVER MR. BONE WILL'S OPEN-ENDED BUDGET THERE. HARD TO READ. YOU JUST, YEAH, THERE YOU GO. THE, IF YOU CAN, YEAH. COMPLAINT WAS ADDRESSED BY PAULA GOLD WILLIAMS HAVING DIRECT CONVERSATION WITH MS. BARNWELL. BUT, BUT SHE NEVER FORMALLY DISCIPLINED HIM. ALSO, HER, HER SIGNATURE APPEARS OVER THE TOP, TOP OF MR. EXPENSE. RE HIS EXPENSE REPORTS. OKAY, THERE YOU GO. ANOTHER ONE. PAULA GOLA WILLIAMS SPENDING INCLUDES $14,000 ON LUXURY CHAUFFEURS. THERE'S HER PICTURES JUST AT THE BOTTOM THERE. YES. YEAH. RIGHT HERE AT CITY HALL. OH, NO. LET ME HAVE THAT ONE BACK. MR. MR. MAYOR, YOU HAD A RESPONSE. MR. MAYOR RON BERNERT RESPONDS, IT IS TIME TO REIGN IN AND I, AND I BETTER, LET'S SEE, PUT SOME GLASSES ON HERE. IT'S TIME TO, AND I BELIEVE IN RESPONSIBLE STEWARDSHIP OF PUBLIC RESOURCES AND WOULD EXPECT ANY PUBLIC EMPLOYEE TO BE RESPECTFUL OF RATE PAYERS AND BEHAVIORS AS THEY WERE SPENDING THE PUBLIC'S MONEY BECAUSE THEY ARE SAID, MAYOR RON NURENBERG, MR. MAYOR. NO, UH, YOU WERE AT THE HELM. YOU WERE OUR REPRESENTATIVE THERE, YOU WERE. THIS HAPPENED UNDER YOUR WATCH. AND MS. HDA. NO. UH, WE DO NOT EXPECT ACCOUNTABILITY AFTER WE HAVE GIVEN THEM OUR RATE DOLLARS. IT DOESN'T WORK THAT WAY, MADAM. NO. AND THAT AND WHAT ELSE? ANOTHER SCANDAL. C P S HUNDRED USED BOGUS DATA TO IMPROVE DIVERSITY SPENDING SCORE. THANK YOU, MR. FINGER. ALRIGHT. UM, PROCEDURALLY I'M GONNA ASK MY COLLEAGUES, UH, IF THEY WANT TO QUEUE UP FOR DISCUSSION, TO PLEASE HIGHLIGHT ITEM FIVE. WE'RE GONNA TAKE UP ITEMS FIVE AND SIX TOGETHER, UH, IN ONE DISCUSSION. UH, WE WILL, HOWEVER, HAVE SEPARATE VOTES ON [01:45:01] THE TWO ITEMS, BUT WE'LL HAVE ONE DISCUSSION AS A WHOLE. SO IN ORDER TO GET US STARTED, LET ME ENTERTAIN A MOTION FOR ITEM FIVE SECOND. OKAY. THERE'S A MOTION BY ROCHA GARCIA, A SECOND BY ELAS. ALRIGHT. AND LET ME HAVE A MOTION ON ITEM SIX. SECOND. ALL RIGHT. THERE'S A MOTION BY ROCHA GARCIA, I THINK A SECOND BY KEO HDA ON ITEM SIX. ALRIGHT, WE'LL GO AHEAD AND START DISCUSSION NOW. UH, IN CONSIDERATION OF BOTH ITEMS FIVE AND SIX, WE'LL START WITH COUNCILMEMBER ROCHA GARCIA. THANK YOU MAYOR. AND I'LL, UH, START OFF BY THANKING, UH, BEN AND, UH, RUDY AND COREY AND, UM, YVONNE AND KATHY FOR, UM, BEING WILLING AND ABLE TO, TO SPEAK TO ME. UM, I, I WANNA RECOGNIZE RUDY, ESPECIALLY BECAUSE I WAS THINKING LONG AND HARD AND TO LAST NIGHT, AND RUDY WAS ANSWERING ALL OF MY QUESTIONS, EVEN LIKE AT 11:00 PM SO THANK YOU RUDY, UM, AND ERIC WALSH AS WELL. UH, SO THANK YOU FOR ALWAYS BEING THERE TO ANSWER THE, THE TOUGH QUESTIONS. AND SO I HAVE A FEW QUESTIONS THAT I KNOW I ALREADY ASKED YOU, RUDY, BUT I'D LIKE TO, I'LL, I'LL, I'LL ASK IT FOR THE BENEFIT OF THE PUBLIC HERE IN JUST A LITTLE BIT. BUT I WANTED TO START OFF WITH SOME COMMENTS AND JUST KIND OF HELP ESTABLISH HOW I GOT TO, TO WHERE I AM TODAY AND MAYBE THE QUESTIONS THAT I'LL HAVE TODAY. AND SO, UM, TOMORROW AFTERNOON I'M GONNA BE AT THE CAPITOL. UM, I'M GONNA BE SWORN IN AS ONE OF 96 DIRECTORS APPOINTED TO THE TEXAS LYCEUM. UM, AND THEIR MISSION IS TO ACT AS A CATALYST TO BRING TOGETHER DIVERSE OPINIONS AND EXPERTISE, FOCUSING ON NATIONAL AND STATE ISSUES AND FACILITATING CONSTRUCTIVE PRIVATE SECTOR, PUBLIC SECTOR AND INDIVIDUAL RESPONSES TO ISSUES FACING OUR STATE. MUCH LIKE OUR ENERGY CRISIS, THE LYCEUM EDUCATES ITS DIRECTORS BY IDENTIFYING AND EXPLORING THE INTERRELATIONSHIPS OF THE MAJOR ISSUES FACING TEXAS AND HELPS BRING A BETTER UNDERSTANDING OF THESE ISSUES TO THE STATE'S KEY DECISION MAKERS. AND IN TODAY, I WILL BE REFERENCING SOME INFORMATION THAT I RECEIVED AT ONE OF THOSE CONFERENCES THAT I DID SHARE WITH SOME OF MY COLLEAGUES. UM, BUT ALSO, UM, THE LYCEUMS, UH, FOUNDERS FOCUSED ON THE POTENTIAL OF TEXAS TO BE A GREAT STATE. AND SO THEY KNEW THAT THE STATE HAD TO OVERCOME SOME PROBLEMS INCLUDING, UM, VIBRANT GROWING SOCIETIES, UH, THINGS THAT ARE ASSOCIATED WITH THESE VIBRANT GROWING SOCIETIES SUCH AS WATER, TRANSPORTATION, EDUCATION, LONG RANGE PLANNING AND OTHERS. AND TO ME, THAT'S WHAT ULTIMATELY IMPACTED MY DECISION. I APPLIED THE SAME CONCEPT LOCALLY. HOW CAN SAN ANTONIO MOBILIZE ITS POTENTIAL TO BECOME A THRIVING CITY? WE ARE AT THE CUSP. WE'VE BEEN AT THE CUSP FOR A LONG TIME, BUT HOW DO WE CROSSOVER FULL SPEED AHEAD AND TAKE EVERYONE ELSE RIGHT WITH FROM OUR COMPETITION, RIGHT? HOW DO WE KNOCK OUR COMPETITION DOWN? THAT'S WHAT KEPT COMING TO ME LAST NIGHT AS I REREAD A POLICY BRIEF THAT WAS PRESENTED AT THIS ENERGY CONFERENCE THAT THE LI HAD THE POLICY BRIEF TITLED, POWERING FORWARD BUILDING RESILIENCE IN THE AFTERMATH OF THE 2021 ERCOT GRID FAILURE WRITTEN BY LYCEUM FELLOW KYLIE RICHARDSON FROM TEXAS TECH. UH, MS. RICHARDSON REMINDS US THAT TECHNOLOGICAL ADVANCES THAT WE'VE EXPERIENCED IN THE LAST DECADE MAKE US INCREASINGLY DEPENDENT ON POWER, BUT SHE ALSO REMINDS US THAT WE'VE GOT MULTIPLE CHALLENGES. CLIMATE CHANGE, THE TRANSITION TO CLEAN AND RENEWABLE ENERGY, A GROWING POPULATION, WHICH OBVIOUSLY RESULTS IN A GROWTH IN ENERGY CONSUMPTION. AND THEN WE HAVE EXTREME WEATHER, WHICH CAUSE FOR CLIMATE RESILIENCE. MS. RICHARDSON MAKES A POINT THAT RESONATED WITH ME AS I WEIGHED MY FINAL INTERNAL DELIBERATIONS. SHE SAID, MAKING SMART FORWARD-THINKING INFRASTRUCTURE INVESTMENTS REQUIRE FUNDING TO PERFORM MAINTENANCE AND UPGRADES AS NEEDED. NOT UNTIL A MAJOR DISASTER TAKES PLACE. AND WE ALL KNOW WE ALREADY HAD ONE AND WE ALL KNOW THAT ANOTHER ONE COULD BE COMING. THE TIMING OF THIS RATE INCREASE, IT'S BAD, NO DOUBT, BUT IT WASN'T BECAUSE OF WINTER STORM URI. THE LAST RATE INCREASE THAT C P S ENERGY ASKED FOR WAS EIGHT YEARS AGO. BUT INVESTMENT IN RESEARCH AND DEVELOPMENT OF CURRENT NEW AND EMERGING SOURCES OF ENERGY. AND PERHAPS ONE DAY FORMS OF CARBON SEQUESTRATION LIKE MS. RICHARDSON'S POLICY RECOMMENDATIONS SUGGEST THOSE ALL REQUIRE UPFRONT COSTS. C P SS MUST INVEST IN ENERGY EFFICIENCY IMPROVEMENT PROGRAMS FOR HOMES, BUSINESSES, AND COMMUNITIES IN SMART PLANNING FOR THE FUTURE IN DIVERSIFYING THE ENERGY MIX. BUT WE'VE ALSO GOT TO INVEST IN C P SS. AND AGAIN, THIS MOMENT IN TIME MAY BE A VERY, VERY BAD TIME, BUT WHEN IS IT EVER A GOOD TIME FOR A RATE INCREASE? THE UNCERTAINTY THAT SURROUNDS US WITH A GLOBAL PANDEMIC THAT HAS MUTATED NUMEROUS TIMES, THE INCREASED COST OF GOODS, LABOR COSTS THAT ARE DRASTICALLY HIGH BECAUSE THERE'S A LABOR SHORTAGE AND THE FORECASTED GROWTH [01:50:01] OF OUR CITY. THESE ARE ALL REASONS WHY WE SHOULD BE FOCUSING ON HOW TO BECOME A SUSTAINABLE COMMUNITY, A SUSTAINABLE UTILITY. NOW WE MUST PREPARE NOW TO BE ABLE TO PROVIDE RELIABLE SERVICE BECAUSE HOW WILL WE SERVICE OUR GROWTH IF WE DON'T PLAN FOR IT? TODAY'S PROPOSAL HELPS BRIDGE A SMALL GAP, IN MY OPINION, THAT HAS LONG EXISTED AT C P SS ENERGY AND IT'S COUPLED WITH THE NEW ENERGY, NEW ENERGY OF NEW LEADERSHIP AND FUTURE LEADERSHIP. FOR YEARS, OTHERS HAVE PASSED THE BUCK. THAT'S THE REALITY. OTHERS ON THIS COUNCIL HAVE ALSO PASSED THE BUCK. I DIDN'T ARRIVE AT THIS SMALL GAP LIGHTLY. I HAD HELP FROM SOME OF MY BOAST INVOLVED RESIDENTS, THOUGH I HAD LOADS OF HELP FROM SOME OF MY SMARTEST RESIDENTS, ONE OF THEM IN PARTICULAR WHO IS HERE TODAY. I'VE LEARNED EARLY ON THAT IF YOU WALK INTO A ROOM AND YOU THINK THAT YOU'RE THE SMARTEST PERSON IN THE ROOM, YOU THINK YOU'D BETTER GO FIND ANOTHER ROOM BECAUSE YOU NEED TO BE CHALLENGED. AND I CHALLENGE MY THINKING ALL OF THE TIME AND THAT'S WHY I APPOINT SOME OF THE SMARTEST PEOPLE I CAN FIND ON MY COMMITTEES. AND I DON'T WANNA HAVE TO THINK FOR THEM. THEY DO THE THINKING THEMSELVES. MY RAC APPOINTEE IS THAT TYPE OF PERSON AND HE'S SO COMMITTED THAT HE'S HERE TODAY TO SUPPORT ME. HE CAST HIS VOTE IN SUPPORT LAST WEEK AT THE RAC COMMITTEE MEETING. THANK YOU MR. PETER. RE. MR. RE, LIKE I MENTIONED LAST WEEK, BRIEFS ME BEFORE AND AFTER EVERY RAC COMMITTEE MEETING. IN FACT, AT THE BEGINNING OF THE RATE INCREASED CONVERSATION WHEN IT STARTED OUT AT A 10% INCREASE, MR. RE KNEW THAT THE IMPACT ON LOW INCOME ENERGY BURDEN CUSTOMERS LIKE THE ONES WE CALL OUR NEIGHBORS WOULD BE EXTREME. AND HE PUSHED BACK BECAUSE HE KNEW I WOULD PUSH BACK THE MUNICIPAL UTILITIES COMMITTEE THAT I SIT ON HAD ALREADY MADE AS AN ISSUE. SO THE RACK MADE A CASE TO HAVE THAT IMPACT ANALYZED AND ULTIMATELY REDUCED THE PERCENTAGE THAT WAS BEING PROPOSED. AND THERE WAS VARIOUS OPTIONS PRESENTED AND MR. FR PRESENTED ME EACH ONE OF THOSE SCENARIOS. AND EACH TIME THE RAC MADE C P SS JUSTIFY THE AMOUNTS THEY WOULD PRESENT UNTIL EVENTUALLY THEY GOT TO 3.8 PER EIGHT 5% AS A COMPROMISE. IN JUNE OF 2021, I SUBMITTED A C C R, WHICH I'M GRATEFUL WAS SIGNED BY COUNCIL COLLEAGUES PERRY, ELAS, CASTILLO AND BRAVO. I ASKED FOR THE CREATION OF A POLICY TO SUPPORT AND REVISIT OUR RELATIONSHIP WITH BOTH OUR UTILITIES. I ALSO ASKED FOR CONTINGENCY PLANS AND AFTER ACTION REPORTS AFTER EVERY MAJOR WEATHER EVENT SO THAT COMMUNITY TRUST AND CONFIDENCE COULD BE RESTORED IN OUR UTILITIES. IT ALSO CALLED FOR CONTINGENCY PLANS INVOLVING CRITICAL INFRASTRUCTURE TO BE REVIEWED AND UPDATED PERIODICALLY. I ALSO ASKED THAT GUIDELINES BE REVIEWED ANNUALLY WITH A CRITICAL LENS ON SERVING VULNERABLE POPULATIONS. I ALSO ASKED FOR A SUBCOMMITTEE CHARGED WITH AN ANNUAL REVIEW, AUDIT AND ASSESSMENT OF ALL THIS WORK FROM OUR MUNICIPALLY OWNED UTILITIES. AND WE STILL MUST REBUILD THAT TRUST. YES, ONE THIRD OF OUR SIDEWALKS ARE PAID WITH REVENUE FOR C P S ENERGY. YES, ONE THIRD OF OUR PARKS AND LIBRARIES ARE PAID FOR BY OUR C P S BILL. AND YES, ONE THIRD OF OUR POLICE AND FIRE DEPARTMENT IS PAID FOR BY C P S ENERGY BILLS. BUT THAT DOESN'T MEAN THAT THEY AREN'T STILL A MUNICIPALLY OWNED UTILITY AND SHOULD ALWAYS BE LOOKING FOR WAYS TO CUT EXPENSES OR FIND COST SAVINGS ACROSS THEIR INDEPENDENTLY RUN ORGANIZATION. AND IT ALSO DOESN'T MEAN THAT BECAUSE THEY PAY THEIR SHARE, THEY DON'T HAVE TO BE GOOD NEIGHBORS. WE ALL LIVE IN THE SAME COMMUNITY. AND IN THE LAST FEW MONTHS, I HAVE SEEN THAT NEIGHBORLY COMMITMENT FROM THE TOP C P S HAS HELPED THOUSANDS OF DISTRICT FOUR HOUSEHOLDS WITH ELECTRICITY BILLS SINCE 2018. C P S ENERGY HAS PROVIDED DISTRICT FOUR RESIDENTS WITH $3.1 MILLION IN ASSISTANCE THROUGH THE AFFORDABILITY DISCOUNT PROGRAM WITH AN AVERAGE ANNUAL ASSISTANCE TOTALING CLOSE TO 800,000 A YEAR. THANK YOU VICTOR, AND THE CREW TEAM FOR ALL THAT YOU DO TO SIGN UP OUR RESIDENTS PHYSICALLY IN OUR FIELD OFFICE. THIS PAST WEEKEND, WE HELD ANOTHER ASSISTANCE FAIR AT PALO ALTO IN CONJUNCTION WITH D THREE BECAUSE OUR NEIGHBORS ARE STILL IN NEED. IN FACT, I'VE BEEN ASSURED BY RUDY GARZA THAT AFFORDABILITY PROGRAM AMOUNTS WILL INCREASE FROM 12 TO $16 FOR THOSE WHO QUALIFY. AND THAT WE WILL OFFSET THE BASELINE INCREASE FOR THESE RESIDENTS. THAT 4 MILLION, THAT'S $4 MILLION WORTH OF AN INCREASE IN HELP AND AN INVESTMENT IN THE ABILITY TO HELP AN ADDITIONAL 14,000 RESIDENTS THROUGH THESE PROGRAMS IS PART OF THE PROPOSED INCREASE. ADDITIONALLY, A FEW MONTHS AGO WHEN SOME SIBLINGS WERE RUN OVER ON THEIR WAY TO SCHOOL AND THEY'RE OKAY, THANK GOD, I PICKED UP THE PHONE AND I CALLED RUDY, WHO THAT SAME NIGHT HAD HIS TEAM GO OUT TO MAKE SURE THAT THE LIGHTS IN THE AREA WERE AS RIGHT AS THEY COULD BE TO PREVENT ANY OTHER ACCIDENT FROM HAPPENING. ALTHOUGH THAT INCIDENT ALSO INCLUDED SOME OVERGROWN VEGETATION AND DENSE FOG ADVISORY, HE STILL TOOK ACCOUNTABILITY AND SENT HIS TEAM OUT. AND RUDY [01:55:01] HASN'T MENTIONED THIS TOO OFTEN, BUT HIS INNOVATION TEAM IS WORKING ON NEW TECHNOLOGY, POSSIBLY ADDING WIFI TO THEIR NEIGHBORHOOD LIGHT POSTS TO HELP US BRIDGE THE DIGITAL DIVIDE THAT WE KNOW EXISTS IN COMMUNITIES LIKE MINE. AND HE KNOWS HOW I FEEL ABOUT THE NEED FOR MICROGRIDS AND FINDING NEW TECHNOLOGIES, SMART TECHNOLOGIES THAT WILL H HELP MAKE OUR CITY MORE ENERGY RESILIENT. RUDY, I DO HAVE SOME QUESTIONS FOR YOU. I KNOW WE HAVE A WHOLE LOT OF WORK AHEAD. I HAVE LIKE 30 SECONDS FOR MY QUESTIONS, SO I TO CHIME BACK IN. UM, BUT I WANTED TO MAKE SURE THAT I ASKED THIS, RUDY, CAN YOU GUARANTEE ME THAT YOU WILL COMMIT TO CONTINUE TO HELP OUR ENERGY BURDEN CUSTOMERS? UH, YES MA'AM. CAN WE ALSO IDENTIFY AND POSSIBLY ENROLL OR PRE-ENROLL THOSE THAT NEED OR YOU CAN IDENTIFY WILL NEED THE MOST DIFFICULT OR WILL HAVE THE MOST DIFFICULTY PAYING THEIR BILL? WE'RE WORKING ON THAT NOW. WE'VE, UH, SIGNED OUR AGREEMENT ON THE ARPA FUNDING WITH THE CITY. UH, GOT A 30 DAY KIND OF WAIT PERIOD AND THEN, UH, WE'LL MOVE. WE WILL, WE WILL. WE'VE ALREADY ACTUALLY GOT 6,300 CUSTOMERS PRE-QUALIFIED, SO WE'RE WORKING ON IT EVERY DAY, MA'AM. GREAT, THANK YOU. SO I HAVE MORE QUESTIONS, I'LL TURN BACK IN. THANK YOU MA'AM. THANK YOU. COUNCIL MEMBER ROCHA GARCIA, UH, WE HAD A SLIGHT, UM, GLITCH THAT PREVENTED TWO NAMES, UH, FROM APPEARING ON OUR SCREENS HERE THAT SIGNED UP FOR PUBLIC COMMENTS. SO AGAIN, UM, I'M GONNA ASK FOR YOUR CONSIDERATION AS I BRING UP THOSE TWO CITIZENS WHO SIGNED UP TO BE HEARD TODAY. UH, SO I'LL BRING UP NOW DEI BELMAR, FOLLOWED BY AARON AAO. AND, UM, AFTER THEY SPEAK, WE'LL GET, WE'LL RESUME WITH THE COUNCIL DISCUSSION, MS. BELMAR, SORRY. I APPRECIATE YOU, UH, GIVING ME THIS TIME. UH, MY NAME IS DEEDEE BEL MADDIS, AND I'M A MEM, A MEMBER OF THE RATE ADVISORY COMMITTEE AND A RATE PAYER. AND I'M, I'M HERE TODAY ASKING THAT BEFORE CITY COUNCIL VOTES TO APPROVE THIS RATE INCREASE THAT Y'ALL CONSIDER. THERE IS LONG OVERDUE REFORM NEEDED AT C P SS ENERGY. UH, C P SS ENERGY'S UNFAIR RATE SYSTEM. I UNDERSTAND THE NEED FOR FINANCIAL STABILITY. I REALLY DO AS A RAC MEMBER FOR THE UTILITY, BUT WITHOUT REFORM OF THE RATE SYSTEM, THERE WILL CONTINUE TO BE CUSTOMERS WHO CONSUME ENORMOUS AMOUNTS OF ENERGY AT THE EXPENSE OF RESIDENTIAL CUSTOMERS. WE ARE STILL IN A HEALTH CRISIS. PEOPLE ARE STRUGGLING. MANY WERE STRUGGLING EVEN BEFORE THE PANDEMIC RAISING RATES WITHOUT DEMANDING THAT C P SS ENERGY MAKES THE HEAVIEST USERS PAY. THEIR FAIR SHARE WILL, WILL HURT MANY VULNERABLE PEOPLE. ONE OF THE ROLES OF THE RATE ADVISORY COMMITTEE IS TO STUDY RATE, DESIGN AND GIVE INPUT. COUNCIL SHOULD BE ASKING THEIR RACK APPOINTEES TO TAKE ON THAT CHARGE IMMEDIATELY. COUNCIL ALSO NEEDS TO ENSURE THAT C P SS ENERGY FINDS A WAY, UH, TO SHUT THE SPRUCE COAL PLAN. WE'RE IN A C CLIMATE CRISIS. WE SEE HOW THE CRISIS IS FUELING EXTREME WEATHER EVENTS LIKE WINTER STORM URI. OUR CITY AND THE UTILITY NEED TO FOLLOW THROUGH WITH THE CLIMATE ACTION PLAN COMMITMENTS AND DEMAND THAT C P S ENERGY START IMMEDIATELY A COMMUNITY DRIVEN RESOURCE PLAN TO GET ES OFF A COAL. AS A RAC MEMBER, I TAKE MY ROLE SERIOUSLY AND TO HEART. 12 MEMBERS OF THE RAC VOTED FOR THE RATE HIKE, SIX OPPOSED IT, AND TWO ABSTAIN. THAT'S HARDLY A MANDATE FOR THIS RATE INCREASE. HOWEVER, I'M HOPEFUL THAT AS THE RATE ADVISORY COMMITTEE MOVES FORWARD, THAT WE COULD LOOK WITH, WITH THE SUPPORT OF C P S ENERGY, THAT, UH, WE WILL LOOK AT THE RATE DESIGN AND THAT WE WILL LOOK FOR THIS, UH, WAY TO SHUT DOWN THE COAL PLANT. THANK YOU. THANK YOU, MS. MI. ERIN AYO. HI. GOOD MORNING, Y'ALL. UH, MY NAME IS ERIN ARGUE GUO. I'M AN ADVOCACY ORGANIZER AT MOVE TEXAS, A MEMBER OF THE RECALL C P S COALITION AND A C P SS RATE PAYER. I'M AN, I'M HERE TODAY TO URGE YOU NOT TO APPROVE ANY RATE INCREASE, UH, FOR C P S ENERGY CUSTOMERS UNTIL C P S COMMITS TO EQUITABLE RATE REFORM. UH, AS IT CURRENTLY STANDS, A FAIR RATE INCREASE IS NOT SOMETHING THAT IS POSSIBLE UNDER THE CURRENT RATE STRUCTURE. UH, THAT STRUCTURE IS THE PROBLEM, NOT ANY TYPE OF SOLUTION. SO RATHER THAN RAISING RATES, C P SS ENERGY SHOULD BE FOCUSED ON REFORMING THE DEEPLY INEQUITABLE RATE STRUCTURE SYSTEM THAT CURRENTLY EXISTS, WHICH BENEFITS THE HIGHEST ENERGY USERS AT THE EXPENSE OF EVERYONE ELSE. UH, AS WE HEAD INTO WHAT WOULD APPEAR TO BE ANOTHER PEAK IN THIS PANDEMIC THAT HAS ALREADY SENT SO MANY RATE PAYERS INTO UTILITY DEBT ALONGSIDE ANY OTHER TYPES OF DEBT THEY MAY ALREADY BE IN, WE SHOULD BE FOCUSED ON HOW TO RELIEVE THE BURDEN ON THOSE CUSTOMERS NOT INCREASING, UH, THEIR BILLS. UH, APPROVING THE RATE HIKE BASED ON FEARS AROUND CREDIT RATINGS IS ESSENTIALLY PASSING ON CPSS DEBT TO [02:00:01] CUSTOMERS PERPETUATING A LARGER CYCLE OF DEBT THAT IS UNSUSTAINABLE AND INEQUITABLE. UM, WHILE THE NEED FOR FINANCIAL STABILITY IS UNDERSTANDABLE, IT SHOULD NOT COME AT THE EXPENSE OF RATE PAYERS. SO I ASK YOU, UH, PLEASE NOT TO APPROVE ANY RATE INCREASE UNTIL C P SS COMMITS TO AN EQUITABLE RATE STRUCTURE ALONGSIDE MEANINGFUL CLIMATE ACTION, ADEQUATE PROTECTION AND WEATHERIZATION FOR RATE PAYERS DURING EXTREME WEATHER EVENTS, AND COMMITMENT TO THE GOALS OUTLINED IN THE CLIMATE ACTION AND ADAPTATION PLAN. UH, THANK YOU FOR YOUR TIME AND NO RATE HIKES UNTIL RATE REFORM. THANK YOU, MR. REO. ALRIGHT, WE ARE GOING TO RESUME OUR COUNCIL DISCUSSION NOW, AND LET ME CALL ON COUNCIL MEMBER KIO HDA. THANK YOU, MAYOR. THANK YOU FOR THE PRESENTATION, BEN AND RUDY AND, UH, FOR THE BOARD FOR, UH, TO THE BOARD FOR BEING HERE TODAY. I HAVE A COUPLE OF QUICK QUESTIONS, AND THEN I WANNA GET MORE INTO MY COMMENTS. UM, ACTUALLY THE FIRST FEW ARE FOR BEN. UM, QUESTIONS. UM, UH, BEN, CAN YOU GO OVER THE RELATED COSTS THAT WILL BE COVERED FROM THE REGULATORY ASSETS? I AM SORRY, GUYS. THE COST ASSOCIATED WITH WHAT THE, UM, THEY'RE GONNA BE COVERED FROM THE REGULATORY ASSET, THE COST FROM THE STORM. YES. SO THE REGULATORY ASSET THAT YOU'RE GONNA SET UP IS JUST OVER A BILLION DOLLARS. BUT THE ONLY THING THAT WILL BE APPROVED AND RECOVERED AT THIS POINT IN TIME ARE THE ROUGHLY $418 MILLION THAT C P S HAS PAID FOR REASONABLE, UH, FUEL COSTS ASSOCIATED WITH THAT EVENT. OKAY. AND THERE'S SOME OTHER RELATED COSTS, BUT IT'S PRIMARILY FUEL AND, UH, POWER ASSOCIATED WITH, UH, UH, ERCOT. OKAY. I JUST WANTED TO MAKE SURE THAT WE'RE CLEAR ABOUT WHAT'S ACTUALLY BEING PASSED DOWN TO THE CUSTOMER REGARDING THE STORM. UM, THE COMMUNITY HAS ASKED, OF COURSE, A LOT OF QUESTIONS LEADING UP TO THIS VOTE, AND ONE OF THEM INVOLVED THE CITY'S TAKE OF C P S REVENUES. IS IT POSSIBLE TO LOWER THE CITY'S ASK TO MAKE UP FOR AT LEAST PART OF THE PROPOSED PERCENTAGE INCREASE? WOULD THAT MAKE A DIFFERENCE TO THE RATE PAYER? SO, COUNCILMAN TWO THINGS. I'M GONNA GO BACK TO A SLIDE HERE REAL QUICK JUST TO COVER AGAIN, FROM, FROM OUR PERSPECTIVE, THE, THE IMPACT ON CITY PAYMENT ASSOCIATED WITH THE REGULATORY ASSETS. SO THIS, THIS MECHANISM THAT WE ARE SETTING UP THAT ALLOWS C P S TO SPREAD THE COSTS OF THE WINTER STORM COSTS OVER TIME, UM, THAT'S GONNA BE AMORTIZED OR FINANCED OVER A 25 YEAR PERIOD. WE HAVE RECOMMENDED AND INCLUDED IN THE ORDINANCE THAT CITY PAYMENT BE WAIVED ON THAT. SO THERE'LL BE NO CITY PAYMENT ON THAT PORTION OF THIS ADJUSTMENT. UH, THAT VALUE IS ABOUT $98 MILLION OVER THE 25 YEAR PERIOD. THE IMPACT TO US, UH, ON, WE'RE RECOMMENDING THE 14% INCREASE BE APPLIED TO THE PROPOSED BASE RATE INCREASE OF 3.85%. IT'S HERE ON THIS SLIDE. IT WOULD BE $5.2 MILLION FOR THE REMAINDER OF FY 2022, AND THEN ABOUT $9 MILLION NET, UH, OF INCREASED EXPENSES IN FY 2023. SO THAT'S THE PORTION WE WOULD BE GETTING IF THIS INCREASE GOES INTO EFFECT ON MARCH 1ST, 2022. AND WHAT WOULD BE THE IMPACT TO THE RATE PAYER IF, UM, IF YOU WERE TO, AND THIS IS A QUESTION THAT CAME UP IN B SESSION, UH, BACK IN DECEMBER. SO WE LOOKED AT, IF YOU WERE TO, FOR EXAMPLE, NOT TAKE THE $9 MILLION PROJECTED THERE FOR A FULL YEAR, ESSENTIALLY NOT APPLY THE CITY PAYMENT TO THE, TO THE 3.85% RATE INCREASE, THAT WOULD LOWER THE RATE INCREASE FROM 3.85% TO ABOUT 3.3%, ABOUT A HALF A PERCENT. THE IMPACT ON THE RESIDENTIAL BILL WOULD GO DOWN ABOUT 50 CENTS A MONTH. SO ABOUT FROM $3 AND 84 CENTS TO ABOUT $3 AND 31 CENTS A MONTH, 50 CENTS A MONTH, UM, FOR EACH RATE PAYER AVERAGE RESIDENTIAL IMPACT, IT'D BE MORE OR LESS DEPENDING UPON YOUR USAGE, BUT THAT WOULD BE THE AVERAGE FOR A RESIDENTIAL CUSTOMER. IS IT? OKAY. THANK YOU. IS IT POSSIBLE TO CREATE, CREATE EXCEPTIONS OR CAPS FOR OUR SENIORS OR, UM, OUR SPECIAL NEEDS COMMUNITY ON A RATE INCREASE? MAYBE THAT'S A QUESTION FOR RUDY. I'M NOT SURE. UM, YEAH, LET ME LET T P SS ADDRESS THAT ONE. OKAY. COUNCILMAN, I THINK BEN COVERED THAT AS WELL IN HIS PRESENTATION. UH, EARLY ON, UH, AS WE LOOK AT THE VARIOUS, YOU KNOW, WAYS WE CAN RESTRUCTURE RATES, THERE'S ALWAYS CARVE OUTS THAT YOU COULD, YOU KNOW, UH, MAKE THAT I'M SURE WILL BE, YOU KNOW, CONSIDERED AS PART OF THOSE DELIBERATIONS. IF YOU CAP SENIOR RATES GOING FORWARD AT WHATEVER THAT TODAY, FOR INSTANCE, THEN FUTURE RATE INCREASES JUST HAVE TO BE SPREAD OVER THE REST OF, OF, OF THE CUSTOMERS, BOTH RESIDENTIAL AND COMMERCIAL. SO, YOU KNOW, AGAIN, WE HAVE A BUCKET OF OF DOLLARS IT TAKES TO SERVE OUR COMMUNITY. AND EVERY TIME WE COME IN FOR A RATE INCREASE, YOU KNOW, WE'RE, WE'RE BRINGING THAT COST UP TO TODAY'S, YOU KNOW, DOLLARS THAT, THAT, THAT IS THE PURPOSE OF US BEING HERE, UH, TODAY. SO BUCKET DOESN'T CHANGE, YOU KNOW, WHERE YOU'RE NOT REDUCING, YOU KNOW, THE OVERALL, YOU KNOW, UH, A REVENUE REQUIREMENT THAT WE NEED TO RUN OUR BUSINESS. YOU'RE JUST CHANGING WHO'S PAYING, YOU KNOW, WHO'S PAYING WHAT PERCENTAGE OF IT. SO, IS IT POSSIBLE? IT'S ABSOLUTELY POSSIBLE. [02:05:01] AND, AND I WOULD EXPECT, UM, THE RATE ADVISORY COMMITTEE, UH, AS WELL AS THE BOARD, ONCE WE GET THOSE RECOMMENDATIONS TO THE BOARD, YOU KNOW, WE'LL HAVE OPTIONS TO LOOK AT THIS GOING FORWARD. SO IT IT'S POSSIBLE. SHORT, SHORT ANSWER IS YES, IT'S POSSIBLE. OKAY. I MEAN, WE DO HAVE CONCERN ABOUT THOSE WITH, UH, FIXED INCOMES. YES. SPECIFICALLY SENIORS IN SPECIAL NEEDS COMMUNITY. AND, UH, MANY PEOPLE HAVE COME TO TALK ABOUT THIS TODAY, BUT I'M JUST GONNA ASK YOU OUTRIGHT, UH, WILL YOU COMMIT TO EQUITABLE RATE REFORM GOING FORWARD? YES, MA'AM. WE, YOU KNOW, MY COMMITMENT IS FOR THE COMMUNITY TO HAVE THIS CONVERSATION AND FOR US TO PRESENT THAT INFORMATION TO OUR BOARD SO THEY CAN MAKE SOME DECISIONS. YES, MA'AM. OKAY. SO I'M, I'M HERE TODAY AS A COUNCIL MEMBER, BUT MORE THAN THAT, I'M A CITIZEN OF SAN ANTONIO AND I'M A C P S RATE PAYER. I SHARE THE CONCERNS EXPRESSED BY MANY OF MY COLLEAGUES AS WELL AS ALL MY CONSTITUENTS. AND, UM, THE QUESTIONS FROM OUR, UM, OUR CITIZENS, OUR, OUR RATE PAYERS, SO YOU CAN BE SURE I'M NOT GONNA LET ANY ORGANIZATION OR UTILITY USE OUR MONEY, UM, WITHOUT STRICT OVERSIGHT. AND I THINK, UH, YOU KNOW, MY COLLEAGUES WOULD AGREE WITH ME. WE WE'RE ASKING C P S, UH, WITH THIS RATE INCREASE. AND, AND WHAT I'M HEARING FROM C P S IS THAT, UM, OUR LIVES ARE GONNA BE BETTER AND WE'RE GONNA TRUST YOU, OR YOU'RE ASKING US TO TRUST YOU, BUT WE'RE ASKING FOR DATA AND ACCOUNTABILITY AS WELL. LET ME BE CLEAR ABOUT SOMETHING. THIS DOESN'T MEAN THAT C P S IN ANY WAY IS AN ADVERSARY, ADVERSARY. I'M SORRY. WE'RE NOT, WE'RE NOT, I DON'T SEE THIS AS AN US AGAINST THEM. WE'RE ALL IN THIS, UM, TOGETHER, UM, VARYING LEVELS, OF COURSE, IN VARYING NEEDS. BUT WE, WE ALL WANT THE SAME THINGS. WE WANT A BETTER CITY. WE WANT A SAFER CITY, AND WE WANT AN ACCOUNTABLE CITY AND PUBLIC UTILITY. THE C P S ENERGY WORKFORCE AND LEADERSHIP AND THE CITY COUNCIL COUNCIL ARE ALL CUSTOMERS AND RATE PAYERS AS WELL. WE CARRY THE SAME RISK FOR THE SAME REWARD. A MESSAGE I KEEP GETTING IN CONVERSATIONS WITH MY COMMUNITY IS A FEELING THAT THERE'S A LACK OF ACCOUNTABILITY. THE RATE PAYERS ARE ASKED TO DO MORE THAN THEIR UTILITY COMPANY RIGHT NOW, THEY UNDERSTAND IS PROVIDING. SO BOTH IN SERVICE AND IN ACCOUNTABILITY. IN RESPONSE TO THAT LAST WEEK, AS YOU KNOW, I SENT A REQUEST TO YOU IN C P S LEADERSHIP FOR A THIRD PARTY FINANCIAL AND MANAGEMENT PROCESS AUDIT. ON MONDAY, THE C P S BOARD OF TRUSTEES TOOK ACTION ON THIS REQUEST AND DIRECTED AND, AND WORKED WITH YOU, RUDY, TO ISSUE AN R F P WITHIN 30 DAYS FOR AN AUDIT. THAT WILL INCLUDE MANAGEMENT STRUCTURE, CORPORATE CULTURE, OVERALL COMPENSATION, AND OPERATIONAL EFFICIENCY. I REALLY SEE THIS AS ASKING FOR SOMEWHAT OF A, A REVIEW TO POTENTIALLY OVERHAUL SOME OF THE PROCESSES OF C P S. AND I'M VERY GRATEFUL TO SAY THAT YOU AND, AND THE BOARD HAVE STOOD, UM, HAVE, HAVE REALLY RESPONDED, UM, AND, AND ARE ARE WILLING TO STAND AND OFFER THAT ACCOUNTABILITY AND THAT INFORMATION. I THINK IT'S A STRONG AND POSITIVE STEP IN THE RIGHT DIRECTION. AND I WANNA THANK AGAIN, THE C P S BOARD AND YOU RUDY, UH, FOR YOUR LEADERSHIP IN SENDING THE RIGHT SIGNAL TO THE COMMUNITY AND STRONG FIRST STEP IN SHOWING ACCOUNTABILITY. IT IS A FIRST STEP, THOUGH. UH, WE HAVE A LONG WAY TO GO TO, TO EARN THAT TRUST. YESTERDAY, THE AUDIT REQUEST RECEIVED THE SUPPORT OF THE SAN ANTONIO HISPANIC CHAMBER, UH, OF COMMERCE, AS WELL AS THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES, LOCAL 2021. SO I'M, I'M GRATEFUL FOR THAT SUPPORT OF THIS REQUEST BECAUSE IT SHOWS THE COMMUNITY IS BEHIND IT. UM, AND, YOU KNOW, AGAIN, IS CALLING FOR TRANSPARENCY AND ACCOUNTABILITY. I, I, I'D LIKE TO SEE THE RESULTS OF THIS AUDIT BROUGHT NOT ONLY TO THE COUNCIL, BUT TO MULTIPLE VENUES. OF COURSE, WE WANNA MAKE IT PUBLIC, UM, THE SAME WAY THE TOWN HALLS WERE PUT TOGETHER FOR THE RATE INCREASE IN EVERY DISTRICT. IF WE CAN HAVE THOSE TOWN HALLS, AGAIN, PUT IT ON YOUR WEBSITE. SURE. UM, OPENLY AND, AND, AND TRANSPARENTLY AVAILABLE TO, TO OUR PUBLIC. UM, AND ALSO ANY EXECUTIVE SUMMARIES OF ANY PAST AUDITS THAT HAVE, UH, OCCURRED, INTERNAL AND EXTERNAL. ANY THIRD PARTIES SINCE FEBRUARY OF LAST YEAR, I'VE HEARD MANY OF MY CONS, CONSTITUENTS TELL ME THEY FELT HELPLESS BECAUSE OF THE LACK OF COMMUNICATION DURING WINTER STORM. YURI, YOU ALL KNOW I'VE BEEN BEATING THE POUNDING THE DRUM ABOUT COMMUNICATION. AND I'VE HEARD YOU VERY LOUDLY AND CLEARLY TODAY TALK ABOUT A COMMUNICATION PLAN. AND, UM, WE ALL KNOW INFORMATION IS IMPORTANT GIVEN OUR EXPERIENCE LAST FEBRUARY, I'M, I'M NOT EXAGGERATING WHEN I SAY THAT INFORMATION, UH, WAS AND REMAINS VITAL TO OUR LIFE AND DEATH DECISIONS. OF COURSE, I WAS ALSO FRUSTRATED WHEN THE STORM HIT. THERE WAS A, IN MY OPINION, A SEVERE LACK OF COMMUNICATION. I DIDN'T HAVE THE INFORMATION THAT I NEEDED TO GIVE MY CONSTITUENTS THE OPTIONS THEY NEEDED TO MAKE THE RIGHT DECISIONS FOR THEIR FAMILY. AND I'VE ASKED FOR THAT DETAILED EMERGENCY COMMUNICATIONS. I, I HAVE RECEIVED A DRAFT, AND I'M, I'M THANKFUL FOR THAT. UM, I'VE BEEN CALLING FOR IT, I THINK, WELL, SINCE THE STORMS, SINCE FEBRUARY, AND I HAVE SEEN A DRAFT AND IT DOES NEED CONTINUED WORK. BUT I'M, I'M GLAD TO SEE THAT THOSE STEPS ARE BEING MADE. I SAY, LET'S GET THIS RIGHT. LET'S BUILD A PLAN, PUTTING TOGETHER THE END USER'S NEEDS FIRST. THIS IS WHAT I'M GONNA BE LOOKING FOR, A, A PLAN THAT ISN'T SILOED, UH, LIKE IN FEBRUARY WHEN EVERY UTILITY AND CITY DEPARTMENT AND COMMUNITY AGENCY SHARED INFORMATION AT THE SAME TIME. WE NEED TO, OF COURSE, CONTINUE THAT AND WORK TOWARDS THAT. UM, I WILL ASK YOU, CAN YOU MAYBE TELL ME A LITTLE MORE, ACTUALLY, MATTER OF FACT, I MIGHT CHIME BACK IN TO ASK YOU THAT. NEVERMIND. UM, I JUST WANNA HEAR A LITTLE MORE ABOUT THE COMMUNICATION PLAN. UM, AND THEN I KNOW THAT YOU'VE BEEN BLOCK WALKING OUT IN [02:10:01] THE COMMUNITIES AND KNOCKING ON DOORS. I THINK THAT'S THE MOST EFFECTIVE WAY TO GET FEEDBACK FROM THE COMMUNITY AND GET TO GET INFORMATION OUT TO THE COMMUNITY. AGAIN, I'LL ASK YOU IF I CAN JOIN YOU, UM, BECAUSE I, I JUST REALLY LOVE BLOCK WALKING AND TALKING TO, TO THE PEOPLE THAT I REPRESENT, UM, THAT I WANT TO BE OUT THERE HEARING IT FROM MYSELF AS WELL. NOT JUST THE PEOPLE THAT CONTACT ME. I WANNA BE OUT THERE WITH YOU UNDERSTANDING THAT INFORMATION. UM, IT NEEDS TO BE MADE CLEAR THAT EVERY, TO EVERYONE THAT C P S IS A COMMUNITY ASSET, NOT A PRIVATE ENTITY. IT IS JUST AS IMPORTANT TO BUILD COMMUNITY TRUST AS IT IS TO REPLACE AGING INFRASTRUCTURE. DISTRICT SIX IS A, I THINK, A MICROCOSM OF SAN ANTONIO. WE HAVE AREAS THAT ARE FLOURISHING AND GROWING RAPIDLY WITH LARGE BUSINESS PARTNERS AND MEDICAL CENTERS, AS WELL AS AREAS THAT EXPERIENCE POVERTY AND HAVE TO DEAL WITH AGING INFRASTRUCTURE. I HEARD BOTH SUPPORT AND OPPOSITION FOR THE RATE REQUEST. IT'S MY RESPONSIBILITY TO REPRESENT THE NEEDS OF ALL MY CONSTITUENTS AS BEST I CAN WITH ALL THESE ITEMS BEING MET. AND THE UNDERSTAND THAT WE'RE UNDERSTANDING THAT WE'RE WORKING TOGETHER. UM, WE HAVE TO CONTINUE TO BUILD THAT TRUST AND INCREASE COMMUNICATION, ACCOUNTABILITY AND TRANSPARENCY SO WE CAN MOVE FORWARD WITH IMPROVING STRUCTURE INFRASTRUCTURE. LOOKING FORWARD TO APPROVING THE RATE REQUEST. YOU'RE ASKING, I'M, I'M, I JUST WANNA MAKE SURE I'M CLEAR ABOUT THIS TOO. I'M GONNA BE A BULLDOG ON THIS. I'M GONNA USE MY SEAT ON THE MUNICIPAL UTILITIES COMMISSION AND, UM, AS A COUNCIL MEMBER TO MAKE SURE THAT THESE PROMISES MADE TO THE PEOPLE THAT I REPRESENT AND TO ME, ARE BEING HELD, UM, ACCOUNTABLE. THAT, THAT THESE PROMISES ARE, ARE BEING FULFILLED. SO WITH THAT, I'LL, UM, I THINK MY TIME'S UP. THANK YOU. THANK YOU. COUNCILMAN. YOU, YOU HAVE MY COMMITMENT TO, TO FOLLOW THROUGH. YES, MA'AM. THANK YOU. COUNCIL MEMBER KEO, HDA, COUNCIL MEMBER S THANK YOU, MAYOR. UM, I, I, I RECOGNIZE THAT, UH, INVARIABLY I WILL ALWAYS BRING UP, UH, MY KIDS DURING THESE CONVERSATIONS ABOUT DIFFICULT DECISIONS. AND, UM, I'M GOING TO, UH, I'M GONNA DO THAT AGAIN. UH, AND, AND THE REASON I DO THAT IS BECAUSE THE PROCESS OF TALKING THROUGH WITH MY KIDS, UH, THE NATURE OF THESE DECISIONS REALLY HELPS DISTILL DOWN AND SYNTHESIZE ALL THE REAL, THE, THE ISSUES, RIGHT? AND IT MAKES THEM MUCH, UH, EASIER FOR ME TO, UH, TO UNDERSTAND THEM AND THEN EXPLAIN THEM. RIGHT? AND ONE OF THE ROLES OF LEADERSHIP IS TO, UM, AND I, I BELIEVE ONE OF THE MOST IMPORTANT ROLES OF LEADERSHIP IS TO EXPLAIN WHERE WE WERE, WHERE WE ARE, AND WHERE WE'RE GOING. AND, UM, AND I, AND I HAVE THESE CONVERSATIONS WITH 'EM EVERY SINGLE MORNING, UM, IN THE CAR. 'CAUSE THAT'S WHEN I, I GET THEM TO MYSELVES. AND, UM, AND, AND THESE, THESE ARE CONVERSATIONS MOSTLY CENTERED AROUND IDEAS AND VALUES. UH, AND, AND, AND WHAT I REPEAT MOST OFTEN TO THEM IS THAT TO, TO BE SUCCESSFUL LEADERS, YOU REALLY HAVE TO MASTER THE, THE ART OF THE POSSIBLE, RIGHT? AND, AND I TEACH THEM THAT WHEN SOLVING TOUGH PROBLEMS, PRAGMATISM IS GOOD. AND, UM, THAT IT ALMOST ALWAYS LEADS, UH, TO THE BEST SOLUTION POSSIBLE. AND AGAIN, EMPHASIS ON THE POSSIBLE. UM, AND THIS MORNING, THIS MORNING, WE HAD A CONVERSATION ABOUT THAT, UH, BECAUSE WE'RE LEARNING THE LYRICS, UH, IN THE CAR, UH, TO THE BEST ROCK SONG THAT HAS EVER BEEN WRITTEN. THE ROLLING STONES. UM, YOU KNOW, YOU DON'T ALWAYS GET WHAT YOU WANT, BUT IF YOU TRY, SOMETIMES YOU GET WHAT YOU NEED. UM, AND, YOU KNOW, I, I TALKED ABOUT THOSE, UH, YOU KNOW WHAT THAT MEANS. AND WE EVEN TALKED ABOUT THIS C P S VOTE AND SOME OF THE, SOME OF THE VOTES WE'RE TAKING REGARDING BONDS AND BUDGETS AND ARPA AND ALL THAT. AND WHAT, AND WHAT I TEACH THEM IS THAT, IS THAT THEY SHOULD ALWAYS, UH, YOU KNOW, AND THAT A SUCCESSFUL LEADER SHOULD ALWAYS AVOID DRIVING HIM OR HERSELF INTO IMMOBILITY BY, UM, ADHERING TO THIS DESIRE FOR, FOR PERFECTION. AND, AND I ALWAYS TEACH THEM THAT IN INFLEXIBLE ADHERENCE TO, TO DOGMA. AND IDEOLOGY IS RARELY, IF EVER, GONNA RESULT IN SOLUTIONS THAT WORK FOR EVERYONE. AND THAT, AND THAT BALANCE IS GOOD. AND I, AND I TEACH THEM THAT WHEN SOMEBODY SETS UP A, UM, A BICHROMATIC TWO COLOR ARGUMENT, RIGHT? A CHOICE, UM, IN THAT YOU ONLY HAVE ONE OR TWO, RIGHT? AND IT'S A BINARY CHOICE THAT ALMOST EVERY SINGLE TIME THAT ARGUMENT IS FLAWED, THAT THERE'S A DEFECT IN THE PREMISE, RIGHT? AND THAT IT'S PROBABLY, IF THEY LOOK CLOSELY A STRONG MAN ARGUMENT. AND THAT REALLY THAT, YOU KNOW, LEADERS SHOULD ALWAYS BE VERY, VERY CAUTIOUS ABOUT THIS RED TEAM VERSUS BLUE TEAM CONSTRUCT THAT PEOPLE LIKE TO SET UP WHEN DEBATING DIFFICULT DECISIONS. AND THAT REALLY, THE SWEET SPOT IS ALMOST ALWAYS FOUND IN THE GRAY, RIGHT? OR, OR IN THE BLUE AND THE RED. AND THAT YOU REQUIRE SOME IMAGINATION AND SOME INNOVATION AND SOME, UM, AND, AND SOME SORT OF META ANALYSIS INTO, YOU KNOW, EVERYTHING THAT'S GOOD AND EVERYTHING THAT'S WRONG, RIGHT? AND EVERYTHING THAT COULD BE BETTER. SO INFORMED BY THOSE CONVERSATIONS [02:15:01] WITH MY KIDS AND THOSE PRINCIPLES AND THOSE VALUES, I AM GONNA VOTE TODAY TO INCREASE, UH, THE C P S RATE AND GRANT THE REQUEST. UM, AND, AND FOR THE SAME OR, OR DIFFERENT REASONS, I'M, I'M PRETTY CONFIDENT THIS COUNCIL IS GONNA VOTE TO APPROVE, UH, BY A MAJORITY. UM, AND I'M ALSO ABSOLUTELY CERTAIN THAT, UM, WE'RE GONNA HAVE A LOT OF CONSTITUENTS THAT ARE UNHAPPY WITH THAT DECISION. UM, AND MANY OF 'EM, IF NOT MOST AREN'T, ARE NOT GONNA UNDERSTAND, UH, YOU KNOW, WHY IT IS THAT WE VOTED THIS WAY. UM, WE ARE CERTAINLY, UH, GONNA GET FLAMED ONLINE, UH, AND WE'RE GONNA BE BLAMED FOR PILING ON TO THEIR, UH, ALREADY STRESSFUL ECONOMIC REALITY. BUT I'M CASTING THIS VOTE TODAY BECAUSE AFTER EVERYTHING I'VE HEARD, I'M CONVINCED THAT C P S HAS MADE THE BUSINESS CASE, UM, FOR THE NECESSITY OF THIS. AFTER EVERYTHING I'VE HEARD, I'VE ALSO COME TO THE CONCLUSION THAT WE CAN'T AFFORD NOT TO HARDEN OUR UTILITY AGAINST AND BE UNPREPARED FOR THE NEXT MEGA STORM. AND WE KNOW THAT MEGA STORMS ARE THE NEW NORMAL. I'M ALSO DOING IT BECAUSE WE CANNOT AFFORD TO BE DEMOTED BY RATING AGENCIES. IF WE ARE. AND IF WE ALLOW THAT TO HAPPEN, WE WILL BE RESPONSIBLE FOR SENDING ALL OF SAN ANTON'S MONEY, RIGHT? MONEY THAT BELONGS TO EVERYBODY, RICH AND POOR WILL BE SENDING IT OFF TO FUND MANAGERS AND BILLIONAIRES SO THEY CAN BUY ANOTHER, ANOTHER ROLEX OR ANOTHER BOTTLE OF OPUS ONE, OR PAPPY VAN WINKLE, OR WHATEVER IT IS THOSE GUYS BUY, RIGHT? AND I'M GONNA BE VOTING TODAY TO APPROVE THIS RATE INCREASE, BECAUSE THIS ARGUMENT THAT I KEEP HEARING AND, AND COUNCILWOMAN ROCHA GARCIA, YOU KNOW, REALLY, REALLY DID A GOOD JOB. THAT THIS ARGUMENT, IT'S A BAD TIME TO DO THIS, IS, IS FLAWED, RIGHT? IT, IT, IT'S PREMISE IS ABSOLUTELY DEFECTIVE BECAUSE IT'S DESTROYED BY ONE REAL SIMPLE QUESTION. AND THAT IS, WHEN WOULD IT BE A GOOD TIME TO DO THIS? CAN ANYBODY IN THIS ROOM ADMIT THAT NO MATTER WHEN WE WOULD EVER DO THIS DURING GOOD TIMES AND BAD, THAT THERE WOULD BE SAN ANTONIANS OUT THERE SAYING, PLEASE, IT'S OKAY. DON'T WORRY ABOUT IT. RAISE MY RATES. THAT WOULD NEVER HAPPEN. IT'S ALWAYS GONNA BE A BAD TIME FOR A LOT OF PEOPLE. AND YET, THERE'S NEVER A WRONG TIME TO DO THE RIGHT THING. RIGHT? AND THAT'S THE BURDEN OF LEADERSHIP. AND SO I'M DOING THIS BECAUSE I REJECT THAT STRAW MAN ARGUMENT, THAT IT'S A CHOICE ALSO BETWEEN RATE PAYERS AND C P S THE UTILITY. THAT'S A FALSE CHOICE. UM, BECAUSE IT'S UNDENIABLE PROTECTING C P S IS PROTECTION FOR SAN ANTONIANS, AND WE NEED C P S TO BE HEALTHY. AND, UM, I, I WAS REPRESENTED TO WATCH OUT FOR THE GENERAL HEALTH. I, I WAS, I WAS ELECTED TO REPRESENT MY, MY NEIGHBORS, BUT ALSO TO WATCH OUT FOR THE GENERAL HEALTH AND BEST INTEREST OF, OF, OF MY NEIGHBORS. BUT WE'RE ALSO ELECTED TO BE THE REGULATORS AND THE OWNERS OF, OF, OF, OF THIS UTILITY. AND IT'S A VITAL ASSET. AND SO, RUDY, I DON'T KNOW IF ANYBODY EVER REALLY LISTENS TO THE SPEECHES WE GIVE UP HERE. I I, I HAVE MY DOUBTS, RIGHT? UM, BUT I, I HOPE THAT YOU'RE LISTENING, RIGHT? AND I THINK IT'S REALLY IMPORTANT THAT YOU TAKE THE MESSAGE BACK TO THE SAN ANTONIANS WHO WORK FOR YOU, THE LINEMEN, THE JANITORS, THE FOLKS ANSWERING THE PHONES, THE FOLKS AT THE SWITCHBOARD, THE PEOPLE IN THE BACK OFFICE. I NEED YOU TO LET THEM KNOW THAT WE UNDERSTAND WHAT OUR JOB IS, AND THAT THIS COUNCIL WILL ALWAYS WORK WITH C P S TO PROTECT THE US THIS UTILITY STABILITY. UM, AND THAT THIS COUNCIL HAS NEVER, AND WILL NEVER SHIRK ITS FIDUCIARY OBLIG, YOU KNOW, FIDUCIARY OBLIGATION. RIGHT? SO I'M VOTING TODAY BECAUSE I, I, I TOOK AN OATH TO DEMEAN MYSELF, UH, IN THE SERVICE OF THIS COMMUNITY. AND, UH, ITS BEST INTEREST, BUT ALSO THE TRUTH. AND AFTER HAVING APPLIED ALL THESE FACTS, UM, I CAN COME TO NO OTHER HONEST CONCLUSION THAT, UH, C P SS RATES INCREASES NECESSARY IN ORDER TO KEEP OUR COMMUNITY RESILIENT AND THRIVING AND HEALTHY, AND OUR ECONOMY COMPETITIVE. UM, AND, AND MY NEIGHBORS DESERVE NOTHING LESS. WHAT I WILL TELL YOU AND, UM, IS THAT OTHER COUNCIL MEMBERS DISAGREE, RIGHT? AND REASONABLE MINDS WILL DISAGREE, RIGHT? BUT AT THE END OF THE DAY, I'M, I'M PRETTY SURE WE'RE GONNA GET THIS RIGHT. SO, WITH MY TWO MINUTES LEFT, CAN I ASK YOU A QUESTION? IT'S NOT, AND IT'S NOT THE HARD ONE. I THINK YOU KNOW THE ANSWER. CAN YOU TELL US WHO BAKER TILLEY US, L L P AND K P M G ARE AND WHAT THEY DO? YES, SIR. BAKER TILLY IS, UH, ONE OF THE FOREMOST AUDITORS IN THE ENERGY SPACE. UH, THEY HAVE PERFORMED OUR EXTERNAL AUDIT OF OUR FINANCIALS. UH, THEIR PAST AUDITS ARE OUT ON OUR WEBSITE, UH, YOU KNOW, THAT, UH, THAT CAN BE, THAT CAN BE VIEWED. UH, [02:20:01] THEY, THEY PROVIDED OUR AUDITING SERVICES FOR 10 YEARS. UH, THE BOARD HAS HAD RECENT CONVERSATIONS ABOUT THE NEED TO CHANGE UP AUDITORS EVERY NOW AND THEN JUST FOR, UH, YOU KNOW, PART IMPARTIALITY, YOU KNOW, REVIEWS. SURE. AND SO, UH, THIS YEAR, K P M G, WE JUST, UH, WE'RE PREPARING FOR OUR AUDIT AND FINANCE COMMITTEE MEETING, UH, COMING UP HERE SHORTLY. UH, AND K P M G WILL ACTUALLY BE ROLLING OUT THEIR AUDIT PLAN FOR C P S ENERGY FOR THIS YEAR. SO, UH, WE HAVE VERY ROBUST AUDITING PROCEDURES AT C P S ENERGY. I'M GLAD TO, YOU KNOW, DO ADDITIONAL REVIEWS IF, IF THAT MAKES, UH, THE COMMUNITY FEEL GOOD ABOUT THE WORK. C P S ENERGY'S DOING. I'VE, I'VE AGREED TO THAT, AND MULTIPLE COUNCIL MEMBERS HAVE ASKED FOR THAT IN THE PAST. AND, UH, OUR BOARD IS GONNA LEAD THERE. UH, AND, AND WE ALSO HAVE INTERNAL AUDITORS, UH, COUNCILMAN APPLIES THAT, THAT DO AUDITS OF ALL PARTS OF OUR BUSINESS TO MAKE SURE OUR CONTROLS ARE ARE IN PLACE. UH, AND, UH, AND, YOU KNOW, WE DO PROBABLY 25 TO 30 INTERNAL AUDITS IN ADDITION TO THE EXTERNAL AUDITS THAT ARE DONE. SO, UM, YOU KNOW, OUR AUDIT CULTURE CAN ALWAYS BE IMPROVED UPON. UH, BUT I CAN PROMISE YOU THAT, UM, YOU KNOW, THOSE PROCESSES ARE REALLY IMPORTANT TO THE WORK THAT WE DO. THANKS, RUDY. AND SO, UM, JUST TO MAKE SURE, 'CAUSE I THINK IT'S ALSO OUR JOB TO MIS, YOU KNOW, DISPEL MISTRUTHS. YOU GUYS DO HAVE A THIRD PARTY AUDITOR. YES, SIR. YOU GUYS PAY A LOT OF MONEY ABSOLUTELY. FOR SOMEONE TO COME IN AND LOOK UNDER THE HOOD. UM, I'M LOOKING AT YOUR LATEST AUDIT REPORT, WHICH IS NOT DIFFICULT TO FIND. IF ANYBODY WHO WANTS TO LOOK AT IT CAN GO TO CP UH, CPS ENERGY.COM, CLICK THE ABOUT US BUTTON, YOU'LL FIND ALL THE FINANCIALS THERE FOR THE PAST FOUR YEARS, INCLUDING AUDIT REPORT. I'M LOOKING AT A 117 PAGE AUDIT REPORT RIGHT NOW. RIGHT? AND IT GIVES YOU GUYS A HEALTHY, UH, YOU KNOW, SCORE. AND THE OPINIONS COME IN POSITIVE. AND YOU, ANYBODY WHO WANTS TO SEE AND BORE THEMSELVES TO DEATH, THEY CAN READ 117 PAGES OF ALMOST EVERY SINGLE FINANCIAL TRANSACTION THAT YOU GUYS HAVE DONE IN THE PAST FOUR YEARS. I THINK THAT'S IMPRESSIVE. AND I AGREE WITH COUNCILWOMAN HDA. WE NEED MORE AUDITS, AND, UH, I, I SUPPORT THAT REQUEST. SO THANK YOU, SIR. THANKS, MAYOR. THANK YOU. COUNCIL MEMBER ELAS, COUNCIL MEMBER COURAGE. THANK YOU, MAYOR. I'M SURE I'M NOT ALONE WHEN I SAY I'VE GOTTEN MORE CALLS AND EMAILS ABOUT THIS ISSUE OVER THE LAST MONTH THAN I HAVE ON ALMOST ANYTHING ELSE. AND I HAVE TO CONCUR WITH, UH, WHAT MY COLLEAGUE WAS JUST REFERRING TO WHEN HE SAID, UH, YOU KNOW, YOU CAN BE A LEADER OR YOU CAN BE A FOLLOWER. IN OTHER WORDS, YOU CAN LISTEN TO ALL OF THE CALLS AND COMPLAINTS AND DECIDE, OKAY, WELL MAYBE THAT'S THE WAY I SHOULD GO. OR YOU CAN CHOOSE TO LEAD AND SHOW THE RIGHT WAY THAT WE SHOULD GO, UH, ON THIS ISSUE, WHICH IS WHAT I HAVE CHOSEN. BUT I THINK THERE'S STILL QUESTIONS TO BE ANSWERED. AND SO, BEN, I'D LIKE YOU TO COME UP AND, UH, THERE WAS A SLIDE THAT YOU SHOWED A WHILE BACK THAT INDICATED THERE WERE LIKE 12 DIFFERENT MEASUREMENTS YOU USED IN EVALUATING, UH, THE C P S REQUEST. COULD YOU BRING THAT BACK UP? BECAUSE I, I THINK PEOPLE TEND TO THINK SOMETIMES, UH, THE CITY RUBBER STAMPS THINGS THAT GET BROUGHT TO US BY, UH, MAYBE THE UTILITIES OR, OR OTHER ORGANIZATIONS. SO THESE WERE THE 12 FACTORS THAT YOU LOOKED AT VERY DEEPLY IN DETERMINING WHAT YOU WOULD RECOMMEND TO C P S AS FAR AS HOW THEY SHOULD PRESENT THEIR RATE INCREASE, RIGHT? OH, THAT'S CORRECT. COUNCILMAN, THESE ARE THE AREAS THAT WE STUDIED AND HOW MANY STAFF MEMBERS LOOKED AT THESE, AND ABOUT HOW MANY HOURS DO YOU THINK YOU SPENT LOOKING AT THESE? BOY COUNCILMAN I , I DON'T EVEN KNOW HOW TO PUT A NUMBER ON THE, ON THE NUMBER OF HOURS. I CAN TELL YOU THAT, YOU KNOW, WE HAVE A DIVISION, AS I MENTIONED IN THE, IN THE FINANCE DEPARTMENT. UH, AN ASSISTANT DIRECTOR THAT IS LED BY RUSSELL HUFF, WHO IS SITTING RIGHT HERE BEHIND ME. AND JEFF POLAND IS THE ADMINISTRATOR. THEY'VE GOT A STAFF THERE THAT, UM, YOU KNOW, ESSENTIALLY IN SEPTEMBER I TOLD THEM, THIS IS IT. THIS IS ALL YOU'RE GONNA WORK ON FOR THE FALL. AND THEY HAVE BASICALLY FOCUSED, UH, ALMOST SOLELY ON THIS. THERE'S A FEW THINGS WE HAD TO DO, BUT THEY HAVE SPENT A TREMENDOUS AMOUNT OF TIME. I HAVE SPENT A LOT OF TIME AS WELL, UH, WITH C P S ENERGY AND THEIR TEAMS. UH, BUT WE HAVE, UH, UH, DONE A LOT OF WORK AND FEEL COMFORTABLE WITH OUR REVIEW. AND, AND WHAT WAS THE NUMBER THAT WAS FIRST PRESENTED TO YOU AS A POSSIBLE C P S UH, RATE? SO THE DRAFT, UH, RECOMMENDATION OR THE DRAFT, UH, RATE PROPOSAL THAT WE GOT FROM C P SS IN SEPTEMBER HAD A BASE RATE INCREASE OF 13 POINT, I BELIEVE, 3%. AND SO, THROUGH YOUR ANALYSIS AND YOUR STAFF'S ANALYSIS AND GOING BACK AND FORTH WITH C P S ENERGY STAFF AND DETERMINING WHAT ARE THE ACTUAL NEEDS AS OPPOSED TO WHAT ARE THE WANTS, THIS HAS BEEN WHITTLED DOWN TO LESS THAN 4%. IS THAT RIGHT? UH, THAT'S CORRECT. ON THE NUMBER COUNTS, MAN, I'M GONNA, I'M GONNA, UH, WELL, YOU KNOW, I DON'T HAVE THAT MUCH TIME TO HEAR YOU GIVE A WHOLE NEW ANALYSIS. I'M GONNA GIVE YOU A 32ND JUST REAL QUICK. OKAY. THANK YOU. SO, JUST SO IT'S CLEAR, [02:25:01] OKAY. YOU KNOW, AS WE TOOK THIS APPROACH AND GOT THAT RATE CASE FROM C P S, WE, WE TOOK A DIFFERENT APPROACH AND, AND IT IS STILL DRIVEN BY A BUSINESS CASE. THERE ARE CERTAINLY SOME CHALLENGES FACING C P S THAT WE'RE GONNA HAVE TO SEE HOW THOSE THINGS EVOLVE AND PLAY OUT, AND THOSE WILL BE BUILT INTO THE FUTURE. BUT I WANNA BE CLEAR, IT WAS A DIFFERENT APPROACH, A DIFFERENT STRATEGY, BUT STILL ONE THAT IS GROUNDED IN A BUSINESS CASE JUSTIFICATION. OKAY. THANK YOU. AND THAT'S WHAT I WANTED TO REASSURE THE PUBLIC ABOUT. UM, THERE WAS SOME QUESTIONS. NOW I, I THINK I'LL PROBABLY ADDRESS THEM MORE DIRECTLY TO C P S ENERGY. THANKS, BEN. UH, AND, AND PROBABLY YOU CAN COME UP, UH, RUDY, AND, AND ANSWER THESE, YOU KNOW, THERE WAS TALK EARLIER ABOUT A LOT OF PEOPLE NOT MAYBE BEING ABLE TO AFFORD THIS INCREASE. UM, AND THE AFFORDABLE DISCOUNT PROGRAM THAT YOU HAVE, THE AFFORDABILITY DISCOUNT, WHO IS USUALLY ELIGIBLE FOR THAT? UH, ANY CUSTOMER WHO IS AT 125% OF THE FE FEDERAL POVERTY GUIDELINE OR BELOW IS ELIGIBLE FOR THE AFFORDABILITY DISCOUNT PROGRAM. WE GOT A LOT OF CUSTOMERS WHO ARE ELIGIBLE THAT DON'T APPLY. YOU KNOW, SOME ARE MAYBE TOO PROUD, SOME DON'T KNOW HOW TO, YOU KNOW, APPLY. YOU KNOW, WE DO A LOT OF OUTREACH, SIR. BUT, UH, BUT WE'VE GOT, YOU KNOW, A LITTLE OVER 51,000 OF OUR CUSTOMERS WHO ARE ON THE AFFORDABILITY DISCOUNT PROGRAM. AND WE'RE GONNA TAKE THAT, YOU KNOW, ADDITIONAL, YOU KNOW, 14,000 UP TO 65,000 CUSTOMERS. SO, OKAY. SO YOU'VE ADDED ANOTHER 14,000 POTENTIAL TO BE UP AROUND 65,000? YES, SIR. GIVE OR TAKE. THOSE ARE CUSTOMERS. CUSTOMERS, YES. OKAY. UH, ARE THERE SENIORS WHO ARE ABSOLUTELY IN THAT AREA? ABSOLUTELY. COULD WE ADJUST THAT TO MAKE MORE SENIORS ELIGIBLE, EVEN IF THEY GO BEYOND THAT? UH, 130%? YES, SIR. I MEAN, IT, YOU KNOW, YOU COULD GO FROM 1 25 TO SOME OTHER NUMBER. WE'VE LOOKED AT THAT, AND, YOU KNOW, EVERY AMOUNT YOU RATCHET IT UP, THAT JUST MAKES THE OBLIGATION BIGGER THAT OTHER CUSTOMERS WILL HAVE TO PICK UP. BUT THOSE ARE OPTIONS THAT WE HAVE AVAILABLE TO US. BUT RIGHT NOW, 65,000 WOULD BE ELIGIBLE. YES, SIR. AND, UH, WHEN YOU LOOK AT THE EXPANSION OF, OF THE, UH, NUMBER OF PEOPLE, AND YOU LOOK AT WHAT THE, UH, WHAT THE INCREASE IS, YOU'VE ALSO EXPANDED THE AMOUNT OF THAT DISCOUNT, IS THAT CORRECT? THAT'S CORRECT. SO IF SOMEBODY TAKES THE DISCOUNT, UH, BUT THEY'RE GETTING, UH, A 5% INCREASE, ARE THEY GONNA HAVE TO PAY $5 AND 10 CENTS MORE PER MONTH? OR WHAT IS THE ACTUAL AMOUNT? YEAH, THOSE PEOPLE RECEIVING A DISCOUNT WILL SEE AS AN INCREASE. YES, SIR. EVERYBODY PAYS THE FUEL. SO THE DOLLAR 26, AN ADDITIONAL EXPENSE FOR, UH, OUR, YOU KNOW, THE, THE FUEL THAT WE PAID DURING URI, THEY WILL SEE, THEY WOULD SEE THAT, BUT THEY WOULD NOT SEE THE 3.3% GIVE OR TAKE FOR, FOR THE BASE RATE INCREASE. BUT DO YOU KNOW WHAT THEY, WHAT THEY WOULD BE PAYING ABOUT A DOLLAR AND 26 CENTS. SO THEY'D BE PAYING MAYBE 2 50, 2 75 AND NOT $5. NO, THEY'D BE PAYING A DOLLAR 26. RIGHT. AND THOSE ON A D P WON'T SEE THE BASE RATE INCREASE. SO THEY WOULD ONLY SEE THAT ADDITIONAL DOLLAR 26 FOR THE FUEL EXPENSE IF YOU'RE AT AROUND 1100 KILOWATTS A MONTH. OKAY. SO THERE'S 65,000 PEOPLE WHO ARE REALLY ONLY GONNA GET ABOUT A DOLLAR. YES, SIR. AND SOME CHANGE INCREASE. CORRECT. OKAY. SO I, I SEE, I THINK A LOT OF PEOPLE DON'T REALIZE THAT WHEN THEY COME AND SAY, WELL, SO MANY PEOPLE ARE GONNA BE HURT BY THIS. OBVIOUSLY THERE ARE SOME PEOPLE WHO AREN'T PART OF THE PROGRAM WHO MAY NOT QUALIFY, WHO WILL BE IMPACTED BY THE $5 INCREASE OVERALL, BUT THERE'S 65,000 OF YOUR CUSTOMERS WHO WON'T BE IN. I THINK THAT'S IMPORTANT TO POINT OUT. THEY, THEY ARE ELIGIBLE FOR OTHER PROGRAMS. SIR, WE'VE GOT ABOUT EIGHT DIFFERENT PROGRAMS FOR SENIORS, FOR, YOU KNOW, VETERANS FOR, YOU KNOW, YOU KNOW, FOLKS, YOU KNOW, THAT, THAT, UH, THAT PROVIDE DIFFERENT TYPES OF, UH, YOU KNOW, OUR CRITICAL CARE BILLING, YOU KNOW, UH, UH, UH, PROGRAMS. SO THERE ARE OTHER, UH, PROGRAMS OUT THERE THAT WILL HELP OTHER CUSTOMERS THAT AREN'T A D P ELIGIBLE. SOMETHING THAT, UH, WE'VE TALKED ABOUT WAS, UH, THAT SOME PEOPLE ARE SEEING AN INCREASE, BUT SOMETHING LIKE SUPER USERS ARE ONLY GONNA SEE LIKE A 29% INCREASE IN THEIR BILL COMPARED TO OTHER USERS. UH, ARE THERE ADDITIONAL COSTS THAT THOSE SUPER USERS PAY THAT, THAT WE DON'T KNOW ABOUT? OR ARE THEY REALLY ONLY GONNA SEE A SMALL INCREASE COMPARED TO EVERYBODY ELSE? WELL, I, I DON'T KNOW HOW THEY GET, I, I, I DON'T KNOW WHAT THE MATH IS, BUT I, I, WHAT I WOULD IMAGINE THEY'RE, THAT THEY'RE REALLY REFERENCING IS, YOU KNOW, WE DO HAVE A VULNERABLE POPULATION. UH, WE'VE BEEN DOING A LOT OF RESEARCH ON, UH, THE UTILITY BURDEN. SO THERE ARE CUSTOMERS WHO PAY A HIGHER PERCENTAGE OF THEIR TOTAL INCOME, UM, YOU KNOW, TO, TO ENERGY. SO OBVIOUSLY, YOU KNOW, IF EVERYBODY'S PAYING THE SAME, MAYBE THOSE WHO ARE AT THE UPPER END OF THE INCOME LEVELS IN OUR COMMUNITY, THEIR GROSS PERCENTAGE OF WHAT THEY'RE PAYING FOR UTILITY SERVICES IS ONE PERCENTAGE. AND THOSE WHO ARE AT THE LOWER END OF OUR INCOME, YOU KNOW, PAY A HIGHER PERCENTAGE OF THEIR TOTAL INCOME. SO I THINK THOSE CALCULATIONS WERE BASED ON, ON THE UTILITY BURDEN CONVERSATION. UH, BUT, BUT OVERALL, [02:30:01] IF YOU USE MORE, YOU'RE GONNA PAY MORE. IF YOU USE LESS, YOU'RE GONNA PAY LESS. THAT THAT'S THE REALITY OF IT. ARE SOME OF THE QUESTIONS AROUND THIS DUE TO BE ANSWERED BY YES, SIR. THE RATE ADVISORY ABSOLUTELY. UH, COMMITTEE, AND THEY'RE GOING TO LOOK AT RESTRUCTURING THE RATES, UH, FROM A MORE EQUITABLE POINT OF VIEW, AREN'T THEY? YES, SIR. ULTIMATELY, THE BOARD, OUR BOARD AND CITY COUNCIL WILL MAKE THE DECISION ON WHAT THAT RATE RESTRUCTURE LOOKS LIKE, BUT THEY WILL MAKE RECOMMENDATIONS OF OPTIONS FOR OUR BOARD TO CONSIDER. THERE WERE SOME OTHER CONCERNS THAT HAVE BEEN BROUGHT UP. UH, FOR EXAMPLE, UH, WHAT DO YOU HAVE TO SAY ABOUT THE USE, THE WASTEFUL SPENDING REPORTED BY, UH, YOU KNOW, C P S EMPLOYEES? THEY SOUNDED PRETTY OUTRAGEOUS. COUNCILMAN THOSE, THAT, THAT STORY MAKES A GREAT HEADLINE. I WILL TELL YOU THAT IS NOT INDICATIVE OF THE SPENDING CULTURE AT C P S ENERGY. YOU KNOW, THE, THE INDIVIDUAL THAT KEEPS GETTING REFERENCED IS NO LONGER WITH US. HE'S GONE, UH, TO DO OTHER THINGS. AND I CAN PROMISE YOU THAT, UH, YOU KNOW, THE EXPECTATIONS THAT I HOLD OF MY LEADERSHIP TEAM AND THAT I EXPECT THEM HOLD TO, UH, TO HOLD THEIR EMPLOYEES TO, UH, HAVE BEEN, YOU KNOW, VERY, YOU KNOW, WELL STATED, AND THEY KNOW THAT, YOU KNOW, WE, WE, WE ARE A PUBLIC OWNED UTILITY, AND THEIR LIMITS TO, YOU KNOW, WHAT WE SHOULD AND SHOULDN'T BE DOING, EVEN IF IT IS WITHIN THE POLICY, DOESN'T MAKE IT RIGHT. YOU KNOW? UH, I THINK THAT WE'VE HEARD A LOT OF PEOPLE, OR I HAVE AN EMAIL SENT TO ME ABOUT ALL THE EXORBITANT SALARIES THAT PEOPLE AT C P S ENERGY ARE BEING PAID. WHAT CAN YOU SAY ABOUT THAT, SIR? OUR, OUR EMPLOYEES ARE PAID A MARKET VALUE FOR THE SKILL SETS THEY BRING TO THE TABLE. UH, AGAIN, WE DO MARKET MATCHES ON AN ANNUAL BASIS TO MAKE SURE THAT OUR, UH, SALARIES ARE COMPETITIVE. YOU KNOW, WE DON'T COMPETE, UH, YOU KNOW, WITH, YOU KNOW, JUST ANYBODY. WE COMPETE WITH OTHER UTILITIES AROUND US. WE COMPETE WITH SS, WE COMPETE WITH A E P, WE COMPETE WITH CENTERPOINT ENERGY. WE COMPETE, YOU KNOW, WITH ALL THE SMALL CO-OPS AROUND US. UH, AND SO, UH, WE'VE GOT TO CREATE A COMPENSATION SYSTEM THAT IS COMPETITIVE SO THAT, YOU KNOW, OUR EMPLOYEES THAT WE ARE TRYING TO RECRUIT WANT TO BE AT C P S ENERGY. UH, THAT HAS BEEN THE DIFFERENCE FOR WHAT C P S ENERGY HAS BEEN. UH, THE, THE FACT THAT WE'VE BEEN SUCH A GREAT UTILITY OVER THE YEARS HAS BEEN BECAUSE OF OUR PEOPLE. AND, UH, YOU, YOU, WE, WE CAN FIND WAYS TO, TO CUT COSTS IN A LOT OF WAYS. I, I WOULD NOT SUGGEST WE SKIMP WITH THE TALENT, BECAUSE THAT IS WHAT'S GONNA, THAT'S WHAT'S GONNA GET US WHERE WE NEED TO BE. OKAY. I SEE. I, I'M OUT OF TIME. I'LL COME BACK WITH A FEW OTHER QUESTIONS THAT SIR PEOPLE HAVE BEEN ASKING. SIR, YOU THANK YOU. THANK YOU. COUNCIL MEMBER COURAGE. COUNCIL MEMBER SANDOVAL. APOLOGIES. ONE, ONE SECOND. THANK YOU, MAYOR. UM, GOOD MORNING. GOOD. THE COMMUNITY HAS COLLECTIVELY DEALT WITH, UM, WINTER STORM URI, UH, BATTLE AGAINST C O V I D AND IS NOW BEING ASKED TO CONSIDER THIS RATE INCREASE DURING A PERIOD OF, UM, PRETTY MUCH HISTORIC INFLATION. I THINK YOU KNOW, HOW DIFFICULT THAT THAT IS. UM, WHEN THE STORM CAME, IT SHOCKED MANY OF US, BECAUSE MANY MEMBERS OF THE COMMUNITY, BECAUSE THEY HAD CONSIDERED C P S UTTERLY RELIABLE. YOU, YOU KNOW, THAT'S, THAT WAS THE, THE REPUTATION THAT THE ORGANIZATION HAD. UM, AND THE EVENT IN ITS AFTERMATH HIT US WITH THE HARSH REALITY OF CLIMATE CHANGE. IT ALSO UNVEILED JUST HOW VULNERABLE OUR RESIDENTS ARE TO THE STATEWIDE ENERGY STRUCTURE, UM, AS WELL AS, UH, TO, TO THE LOCAL, UH, STRUCTURE THAT WE HAD HERE AS WELL TO SOME ELEMENTS OF IT. AND I, I DO KNOW MANY C P S EMPLOYEES STEPPED FORWARD AND HELPED US RECOVER AND HELPED OUR RESIDENTS RECOVER FROM THAT STORM. AND I THANK THEM FOR THEIR VERY, VERY, VERY HARD WORK, UH, DURING THAT TIME. UM, UNFORTUNATELY THOUGH, WHAT HELD SWAY IN PUBLIC OPINION AT THE TIME, AND YOU KNOW THIS BECAUSE WE'VE TALKED ABOUT THE MORALE OF THE, OF THE, OF THE WORKFORCE THERE, WHAT HELD SWAY IN PUBLIC OPINION WAS THAT UNRAVELING OF THAT STERLING REPUTATION THAT, THAT C P S HAD. UM, MANY PEOPLE HAVE OPPOSED TODAY'S RATE STRUCTURE, WHO, PEOPLE WHO HAVE COME TO SPEAK, OR PEOPLE WHO HAVE COME TO TALK TO US. UH, BUT IN MY OPINION, DR. MACKEY, TRUSTEE GONZALEZ, RUDY, UM, I DO NOT BELIEVE THAT IS A CONDEMNATION OF YOU. I BELIEVE THIS IS A LEGACY THAT YOU HAVE INHERITED, AND THAT I KNOW YOU ARE WORKING VERY HARD TO, TO CHANGE. UM, AND YOU, THAT WAS INHERITED NOT JUST BY, YOU KNOW, WHOEVER WAS THERE BEFORE YOU, BUT, BUT BY US AS WELL, AND, AND OUR PREDECESSORS. AND IT IS INCUMBENT UPON NOT ONLY YOU BUT US. AND THAT IS WHAT I'M HEARING FROM MY COLLEAGUES TO CHANGE THE DIRECTION OF THAT LEGACY. SO YOU HAVE MY [02:35:01] COMMITMENT THAT WE ARE GOING TO WORK WITH YOU ON THAT. AND, YOU KNOW, BECAUSE WE'VE BEEN ASKING YOU LOTS OF QUESTIONS, WE'VE BEEN GETTING INVOLVED WHERE YOU WOULDN'T HAVE NORMALLY SEEN COUNCIL MEMBERS, UH, BEFORE. BUT WHILE SOME OF THAT WORK HAS BEGUN, WE STILL HAVE A LOT OF WORK TO DO. AS YOU KNOW, FOR ME, TODAY'S VOTE IS A VOTE ON WHERE WE WANT THIS AGENCY TO GO, AND WHETHER WE HAVE THE CONFIDENCE THAT THAT'S WHERE IT'S GOING RIGHT NOW, AND THAT IT CAN GET THERE. C P S YOU WILL NO LONGER BE GOING ALONE. THIS A, THIS COUNCIL WILL BE MUCH MORE ACTIVE WITH YOU. LIKE YOU SAID, THIS IS A COMMUNITY ASSET OWNED BY THE PEOPLE OF SAN ANTONIO, AND THEY EXPECT THEIR VOICES TO BE HEARD EITHER THROUGH YOU DIRECTLY OR THROUGH US, AND THEY EXPECT TO HAVE A ROLE IN THAT. I'M GOING TO GO THROUGH SOME QUESTIONS THAT ARE, UM, RELATED TO MY MAJOR DECISION POINTS, UH, ON THIS VOTE, WHICH ARE PUBLIC TRUST, THE JOINT FOR A, A JOINT VISION FOR A COMMUNITY ASSET BETWEEN THE COUNCIL AND C P S AS WELL AS CLIMATE CHANGE. I'LL BEGIN WITH CLIMATE CHANGE. IT IS ABSOLUTELY PAST TIME FOR THE LARGEST MUNICIPAL UTILITY IN THE NATION TO TAKE A FORMAL POSITION AND A LEADERSHIP ROLE ON FIGHTING CLIMATE CHANGE AND ENDING THE USE OF COAL. THAT'S WHY I'VE ASKED FOR A COMMITMENT FROM C P S ENERGY LEADERSHIP TO IMMEDIATELY BEGIN THE PLANNING PROCESS FOR THE SHUTTING DOWN OF SPRUCE ONE AND TWO, AND THE, WELL, THE SHUTTING DOWN OF THE USE OF COAL. WE'LL SAY THAT, UH, RUDY, CAN YOU PLEASE TALK TO US ABOUT, AND, AND PROVIDE A COMMITMENT ABOUT WHEN THAT TIMELINE WILL BE PRESENTED? COUNCILWOMAN, UH, MY BOARD CHAIR, UH, TALKED ABOUT, UH, RESOLUTION HE'S WORKING ON, UH, THAT HE'LL BE BRINGING, UH, FORTH TO THE BOARD SOON, UH, TO MAKE THE DECISIONS ON THE SPRUCE UNITS. UH, I'VE SAID, UH, MULTIPLE TIMES, UH, UH, BEFORE THIS BODY THAT, UH, I THINK THOSE CONVERSATIONS NEED TO LOOK AT THE WHOLE PICTURE OF WHAT OUR GENERATION PLAN LOOKED LIKE. UH, AND, UH, WE WERE ALREADY PLANNING FOR, UH, THIS JANUARY, UH, RATE ADVISORY COMMITTEE MEETING. THEY WILL BEGIN THE PROCESS OF, UH, DIGGING IN, UH, TO THE GE GENERATION PLAN. AND, UM, YOU KNOW, THE PROCESS FOR HOW WE'RE GONNA APPROACH, UH, YOU KNOW, THEIR INPUT ON, ON RATE RESTRUCTURING. SO, UH, I ANTICIPATE NO LATER, YOU KNOW, I, I THINK WE CAN GET THOSE DECISIONS MADE SO WE CAN GET ON THE PATH THIS YEAR OF WHAT OUR GENERATION PLAN WILL LOOK LIKE. AND, AND I WOULD, I WOULD SAY, YOU KNOW, DR. MACKEY, I'M, I'M NOT GONNA SPEAK FOR YOU, BUT I, I THINK WE CAN GET THAT DONE NO LATER THAN DECEMBER THIS YEAR. YOU KNOW, OUR BOARD SHOULD BE ABLE TO MAKE SOME DECISIONS ON THESE ISSUES. SO TO BE CLEAR, YOU WILL BE ABLE, AND YOU WILL BRING A PRESENTATION ON THE TIMELINE FOR THE ENDING OF THE USE OF COAL BY C P SS TO THIS COUNCIL. YES, MA'AM. BY THE END OF THIS YEAR. YES, MA'AM. UH, WHAT I'LL, WHAT I CAN COMMIT TO IS AS, AS WE GO THIS YEAR, UH, WE'LL GO BEFORE THE MUNICIPAL UTILITY COMMITTEE AND WE'LL, WE'LL, WE'LL UPDATE YOU ON A REGULAR BASIS ON HOW THOSE CONVERSATIONS ARE GOING. AND IT'S NOT GOING TO BE 2040, RIGHT? NO, MA'AM. . OKAY. NO, MA'AM. I DON'T BELIEVE SO, NO. OKAY. THANK YOU. THANK YOU VERY MUCH, RUDY. I APPRECIATE THAT. OKAY. AND YOUR, YOUR CONVERSATION WITH ME ABOUT THAT. THANK YOU. UM, I'D LIKE TO SPEAK ABOUT OUR JOINT VISION FOR A COMMUNITY ASSET. AND TO ME, THIS ACTUALLY HAS A LOT TO DO WITH THE RATE STRUCTURE. UH, BEN, YOU TALKED ABOUT HOW IT'S DIFFICULT TO DO A RATE STRUCTURE MODIFICATION, AND OH, YOU DON'T NEED TO GET UP. I'M, I'M GONNA PROSELYTIZE HERE, DURING, UH, DURING THE TIME OF A PROPOSED RATE INCREASE. AND, UH, AND I UNDERSTAND THAT, UM, THERE'S GOING TO BE QUOTE, WINNERS AND LOSERS, AND THAT'S NOT GOING TO BE EASY TO NAVIGATE. AND GOING THROUGH, GOING THROUGH A RATE INCREASE IS ALWAYS, IS GOING TO BE DIFFICULT. AND GOING THROUGH THAT WILL BE DIFFICULT. BUT IT IS WORK THAT WE HAVE TO, THIS COUNCIL HAS OVER AND OVER PLEDGED TO ADVOCATE AND IMPLEMENT EQUITY, AND THE RATE STRUCTURE REVIEW IS OVERDUE. THE COMMITMENT I'M ASKING FOR TODAY IS THAT YOU WILL BRING US A TIMELINE FOR REVIEW OF THE RATE STRUCTURE AND THAT OH, YES. CAN YOU PLEASE EXPLAIN WHAT THAT, WHAT THAT IS? MM-HMM. ? YES, MA'AM. AGAIN, AS I STATED EARLIER, UH, YOU KNOW, WHAT, YOU KNOW, WHAT, WHAT MY, AT LEAST WHAT MY VISION IS FOR HOW THIS CONVERSATION'S GONNA GO IS THERE ARE OPTIONS. EVERY ONE OF THOSE OPTIONS, YOU KNOW, UH, HAS COSTS, UH, EVERY ONE OF THOSE OPTIONS WILL TAKE, YOU KNOW, UH, DOLLARS OUT OF, YOU KNOW, ONE BUCKET OF, OF, UH, OR ONE, YOU KNOW, SEGMENT OF RATE PAYERS AND MOVE IT TO OTHER BUCKETS. AND IT'S REALLY IMPORTANT THAT WE UNDERSTAND WHAT'S GOING ON, UH, SO THAT, UH, YOU KNOW, [02:40:01] THE TOTAL REVENUE REQUIREMENT FOR RUNNING OUR SYSTEM IS TAKEN CARE OF. UH, BUT AGAIN, I THINK, UH, THOSE CONVERSATIONS SHOULD BE ABLE TO, TO HAPPEN AGAIN. UM, YOU KNOW, THE RATE ADVISORY COMMITTEE HAS GOTTA GET A TIMELINE TO HAVE THESE CONVERSATIONS SO THAT, YOU KNOW, AND, AND OUR BOARD WORK WILL BE SUBJECT TO KIND OF WHEN THEY THINK THAT WORK CAN GET, CAN GET DONE. BUT AGAIN, I, MY MY HOPE IS I THINK WE CAN GET THAT DONE OVER THIS YEAR TOO, MAYBE OVER THE NEXT 12 TO 18 MONTHS. BUT CERTAINLY, UH, YOU KNOW, MY GOAL IS TO TRY TO GET, GET THAT WORK RELEASED PRELIMINARILY DONE THIS YEAR. I, I ACTUALLY THINK THAT'S GONNA BE HARDER THAN SHUTTING DOWN THE COLD TIDE . I AGREE. I AGREE WITH YOU. UM, BUT, UH, ONE MORE COMMITMENT I'D LIKE TO GET FROM YOU IS THAT YOU WILL CONSIDER MY RECOMMENDATIONS ON RATE STRUCTURE AND UTILITY BURDEN EXPERTS THAT CAN BE BROUGHT IN TO PROVIDE TECHNICAL SUPPORT TO THE RAC AND STAFF. COUNCILMAN, YOU AND I HAVE HAD THIS CONVERSATION. I WILL MEET WITH ANYONE, UH, THAT YOU'D LIKE US TO MEET WHO HAS INSIGHT THAT, THAT MIGHT BE VALUABLE TO US. THANK YOU, RUDY. THANK YOU, MA'AM. LASTLY, I'LL CONGRATULATIONS, BY THE WAY, . THANK YOU. LASTLY, UM, I'M GOING TO SPEAK ABOUT PUBLIC TRUST. UH, FRANKLY SPEAKING, RIGHT NOW, THE UTILITY DOES NOT HAVE THE COMMUNITY TRUST FOR SOMETHING LIKE A 13.3% RATE INCREASE. YOU DO NOT HAVE MY TRUST FOR A 5% RATE INCREASE RIGHT NOW. BUT I WANNA THANK BEN, HIS TEAM, ALL MEMBERS OF THE RAC, AND ESPECIALLY CHAIR REED WILLIAMS, AND VICE CHAIR EL LUISA MORALES, OR FORMER VICE CHAIR, UH, FOR THEIR METICULOUS REVIEW OF THAT REQUEST, AND IDENTIFYING WHAT WAS MOST URGENT AND NECESSARY TO GET US THROUGH THE NEXT TWO YEARS. YOUR RECENT OUTREACH TO THE COMMUNITY IS APPRECIATED. THERE'S NEVER A BEST TIME TO DO THIS OR A GOOD TIME TO DO THIS, BUT THERE IS A LESS WORSE TIME. BUT AGAIN, THIS IS AN INHERITED LEGACY. AND I TOLD YOU I WOULD WORK WITH YOUR TIMELINE. I UNDERSTAND THAT WITHOUT TODAY'S APPROVAL, YOU MAY NOT COMPLETE THE WEATHERIZATION NEEDED FOR PREPARATION IN ADVANCE OF ANOTHER STORM, AND THAT IT COULD PUT AT RISK THE LEVEL OF CUSTOMER ASSISTANCE PROGRAM THAT WE HAVE RIGHT NOW, AND THAT THERE COULD BE OTHER POTENTIAL NEGATIVE FALLOUT THAT OUR COMMUNITY COULD NOT WITHSTAND AT THIS POINT. WITH THE WORK CONDUCTED BY THE COMMITTEE ON EMERGENCY PREPAREDNESS, THE REPORT, THE OVERSIGHT BY THE MUNICIPAL UTILITIES COMMITTEE, I BELIEVE YOU ARE ON THE RIGHT PATH FOR PREPARATION FOR THE NEXT STORM. WITH THOSE THREE ISSUES ADDRESSED, I WILL BE SUPPORTING THE RATE INCREASE TODAY. THANK YOU. THANK YOU. COUNCIL MEMBER SANDOVAL. ANDY, DID YOU WANT TO? UH, YES, MAYOR, I JUST WANNA MAKE, UH, ONE POINT AS, UH, AND WE DO APPRECIATE THE CEO'S, UH, COMMITMENT TO ADDRESS A LOT OF THE CONCERNS THAT HAVE BEEN RAISED BY THE COUNCIL MEMBERS AND PROBABLY WILL BE RAISED BY OTHER COUNCIL MEMBERS. BUT I DO WANNA REMIND THE PUBLIC THAT, UH, IN TERMS OF THE ACTUAL VOTE, THEY'RE NOT CONDITIONED ON THAT, PARTICULARLY WHEN IT RELATES TO MATTERS THAT ULTIMATELY THE C P S BOARD WILL HAVE TO CONSIDER AND APPROVE. THANK YOU, MAYOR. NO, I THINK THAT'S UNDERSTOOD. UM, AND I, I WILL TELL YOU THOUGH, EVERYTHING I'M HEARING FROM THE COUNCIL, UH, I AGREE WITH, AND SO, UH, I LOOK FORWARD TO HAVING CONTINUED CONVERSATIONS WITH MY COLLEAGUES, UH, BOTH ON THE BOARD OF TRUSTEES AS WELL AS, UH, ON THIS COUNCIL. SO, UH, LET'S CONTINUE WITH THE DIALOGUE AND WE'LL MOVE NOW TO COUNCIL MEMBER MCKEE RODRIGUEZ. THANK YOU, MAYOR. UM, NORMALLY I WRITE WHERE I MARK MY REMARKS WHILE I'M UP HERE, UM, BASED ON LENGTHENED CONVERSATION WITH MY TEAM, UM, NOTES THAT THEY PREPARE AND MATH THAT I DO WHILE I'M UP HERE, AND WHAT I HEAR DURING THE PUBLIC COMMENT AND COUNCIL DISCUSSION. UM, AND IT'S BEEN ONE OF MY PET PEEVES. UM, AND I, I DO THAT BECAUSE IT'S ONE OF MY PET PEEVES WHEN I FEEL AS THOUGH, YOU KNOW, UM, COMMENTS AND DISCUSSION OR IGNORED, AND PEOPLE ARE JUST GONNA READ THEIR PRE-WRITTEN SPEECHES. AND SO, UM, I, I REALLY JUST WANTED TO BE CLEAR THAT EVERYBODY WHO CAME UP HERE TODAY, UM, BOTH IN BOTH IN FAVOR AND OPPOSED, I HEAR YOU. UM, AND I WAS TROUBLED BY SOME, I I ACTUALLY WAS TROUBLED BY SOME SOMETHING THAT I HEARD, UM, FROM, UH, IN INTERIM C E O RUDY LOPEZ, TO THE EFFECT OF A NO VOTE DOES NOT PUNISH C P S, BUT HARMS, UH, RESIDENTS. AND I THINK THAT THAT'S A MISUNDERSTANDING AND A MISREPRESENTATION OF OUR OPTIONS AND WHAT OUR GOALS ARE AS COUNCIL MEMBERS. AND I WANT IT TO BE CLEAR THAT I'M NOT HERE TO RUBBER STAMP. I'M NOT HERE TO STIFLE PUBLIC OPINION OR COMMENT, AND I'M NOT HERE TO NOT ASK QUESTIONS AND TO JUST GIVE A YES VOTE, BECAUSE THAT'S WHAT EVERYBODY'S DOING. AND I THINK A PART OF THAT IS THAT MY UNDERSTANDING IS THE BASE SALARY OF C E O FOR THE PAST FISCAL YEAR WAS ABOUT 440 [02:45:01] K, SOMETHING OF SOMETHING TO THAT EFFECT. MY CONSTITUENTS MAKE ABOUT LESS THAN 5% OF THAT. AND SO MY VOTE, OBVIOUSLY IS NOT GONNA MEAN THE SAME THING TO EACH OF YOU, OR TO EACH OF YOUR CONSTITUENTS, OR TO EACH OF MY COLLEAGUES, AS IT WILL MEAN TO ME AND TO MY CONSTITUENTS. AND I SAY ALL THAT TO SAY THAT I'M PERSONALLY NOT GOING TO VILLAINIZE C P S, I'M NOT GONNA VI VILLAINIZE ANY OF THE COUNCIL MEMBERS WHO VOTE, UM, DIFFERENTLY THAN I DO. THAT'S NOT WHAT I, THAT'S NOT WHAT I DO WHEN I'M UP HERE. BUT I AM A LITTLE, UH, UH, AGITATED BY SOME OF THE COMMENTS ABOUT LEADERSHIP AND ABOUT HOW, YOU KNOW, OH, WE SHOULDN'T JUST LISTEN TO WHAT THE COMMUNITY'S SAYING AND VOTE WITH, VOTE WITH THEM AGAINST WHAT WE KNOW. PEOPLE. WE'RE UP HERE MAKING DECISIONS BASED OFF OF INFORMATION THAT IS AVAILABLE TO US READILY, THAT IS NOT AVAILABLE ALL THE TIME TO OUR CONSTITUENTS COMPLETELY UNDERSTAND THAT. BUT THERE'S NO SHORTAGE OF PEOPLE ON THIS DAIS WHO ARE GONNA REPRESENT THE CHAMBERS OF COMMERCE, WHO ARE GONNA REPRESENT BUSINESS INTERESTS AND WHO ARE GONNA REPRESENT LOBBYISTS. THERE IS A SHORTAGE OF PEOPLE WHO ARE LISTENING TO CONSTITUENTS AND SAYING, I'M GOING TO ECHO WHAT THEY'RE SAYING, AND I'M GOING TO VOTE ON BEHALF OF THOSE PEOPLE MAKING $18,000 A YEAR. I DO HAVE WRITTEN REMARKS, UM, 'CAUSE I WANTED TO VERY CAREFULLY EXPLAIN WHY I'M VOTING THE WAY THAT I'M VOTING TODAY. SO TODAY, C P S ENERGY IS IN NEED OF ASSISTANCE FROM THE RATE PAYERS OF OUR CITY. AND AS I THOUGHT ABOUT THIS IMPORTANT VOTE, I REALIZED HOW SIGNIFICANT THIS VOTE IS TO REGULAR WORKING CLASS FAMILIES IN DISTRICT TWO. THIS IS THEIR VOTE. AND I FEEL THE RESPONSIBILITY TO ENSURE MY CONSTITUENT VOICE IS HEARD AT THIS TABLE. AND DURING THE COMBINED D TWO AND D THREE VIRTUAL TOWN HALL ON MONDAY, I LISTENED FOR GUIDANCE FROM MY COMMUNITY, AND I ASKED A SIMPLE QUESTION, WHAT CAN C P S ENERGY DO TO EARN YOUR SUPPORT FOR THIS RATE INCREASE? AND WE WOULD'VE PREFERRED TO HOST AN IN-PERSON EVENT, BUT WE DID THE BEST WE COULD TO PROVIDE IMPORTANT INFORMATION AND ANSWER SOME VERY GOOD QUESTIONS FROM RESIDENTS. ALTHOUGH THIS IS NOT THE OUTREACH I WOULD'VE LIKED TO DO. THIS ISN'T THE KIND OF PUBLIC COMMENT I WOULD'VE LIKED TO SOLICIT. BUT IN THE END, IT COMES DOWN TO THIS CHANGE WILL MOVE AT THE SPEED OF TRUST. AND RIGHT NOW, WE MUST ADMIT THE C P S ENERGY AND THE CITY, FOR THAT MATTER, HAVE A LONG WAY TO GO TO EARN THE TRUST OF OUR COMMUNITY, ESPECIALLY OUR WORKING CLASS FAMILIES. FOLKS WHO SAT IN COLD DARK HOMES ON THE EAST SIDE WHILE THE LIGHTS WERE BRIGHT DOWNTOWN. OUR SENIORS ON A FIXED INCOME ARE SINGLE MOMS JUGGLING CHILDCARE AND FINANCIAL PRESSURES, AND ALL THE FOLKS WHO ADVOCATE FOR PUBLIC ACCOUNTABILITY AND CLIMATE JUSTICE. JUST RECENTLY, WE BEGAN HAVING FORUMS AND INVITING THE PUBLIC TO SHARE THEIR EXPERIENCES WITH C P S ENERGY, DESPITE KNOWING THAT THIS WAS A CONVERSATION AND DISCUSSION THAT WAS GONNA BE HAPPENING. THIS IS WHY TODAY I'M MAKING COMMITMENT TO WORK WITH C P S ENERGY TO BUILD A STRONGER RELATIONSHIP, STARTING WITH OUR DISTRICT TWO COMMUNITY. AND THESE ARE TOPICS THAT I, THESE ARE TOPICS THAT I BELIEVE WE NEED TO ADDRESS BEFORE WE MOVE FORWARD WITH ANY ASKS OF OUR C P S RATE PAYERS, WHICH ARE ALL ISSUES THAT HAVE BEEN RAISED BEFORE AND ARE BEING DISCUSSED RIGHT NOW. AND A PART OF THAT IS THE RESTRUCTURING OF THE RATES. WE NEED A MORE EQUITABLE RATE STRUCTURE WHERE THOSE WHO USE MORE ENERGY PAY MORE. WHILE THOSE RESIDENTIAL CUSTOMERS WHO U USE LESS, UM, PAY AT A LOWER RATE. WE NEED TO DEVELOP A PLAN TO SHUT DOWN THE SPRUCE COAL POWER PLANT BY 2030. I NEED TO BE ABLE TO REPLACE THE D TWO RACK APPOINTEE. I HAVE SAID THIS CO CON, COUNTLESS TIMES THAT I WAS NOT ABLE TO APPOINT THE MEMBER. THEY REFUSED TO RESIGN. THEY REPRESENT VALERO. THEY DO NOT LIVE IN MY DISTRICT. I NEED TO BE ABLE TO REPLACE THEM. UH, I'LL GET TO YOU IN A SECOND. AND THEN FINALLY, ESPECIALLY AS THIS PANDEMIC CONTINUES, WE NEED TO STOP THE PRACTICE OF DISCONNECTING RESIDENTIAL CUSTOMERS FOR THEIR INABILITY TO PAY. AND FINALLY, I AGREE WITH MY COUNCIL COLLEAGUE, COUNCILWOMAN COBE HAV ON THE CALL FOR A FINANCIAL, A THOROUGH FINANCIAL AUDIT OF C P S ENERGY. AND AS A MEMBER OF THE AUDIT AND ACCOUNT ACCOUNTABILITY COUNCIL COMMITTEE, I HOPE WE CAN TAKE ACTION ON THIS TOPIC, UM, QUICKLY AND FOR THE REASONS I JUST STATED. AND UNTIL WE CAN ACCOMPLISH THESE GOALS TOGETHER, I CANNOT SUPPORT A RATE INCREASE AT THIS TIME. YOU HAD A COMMENT, MR. LOPEZ? COUNCILMAN, I JUST WANT TO ACKNOWLEDGE, UH, THAT WE WILL BE MAKING, UH, SOME RACK BYLAW CHANGES. UH, UH, UH, TRUSTEE GONZALEZ WILL BE BRINGING SOME CHANGES TO OUR BOARD IN, UH, IN FEBRUARY TO ALLOW COUNSEL TO MAKE CHANGES, YOU KNOW, WHEN YOU, WHEN YOU, WHEN YOU GET ELECTED. SO WE'VE HEARD YOU, AND WE'RE GONNA, WE'RE GONNA, WE'RE GONNA ACCOMMODATE THAT. THANK YOU. THANK YOU. COUNCIL MEMBER MCKEE RODRIGUEZ. COUNCIL MEMBER GRO. THANK YOU. UM, I STRUGGLE WITH THIS VOTE AS, AS MANY OF YOU KNOW, UM, AS A, AS A COUNCIL MEMBER, I STRUGGLE WITH THIS VOTE AS A RATE PAYER. I THAT LIVES IN A VERY OLD HOUSE. I STRUGGLE WITH THIS VOTE. UM, BUT I APPRECIATE, BEN, YOUR EFFORTS AND HOW WE WAITED. WE WAITED FOR ANSWERS FROM OTHER ENTITIES, FROM THE STATE IN PARTICULAR, AND WE DID NOT GET THE ANSWER. THE ONE THING I WANT US TO REMEMBER WHEN WE TALK ABOUT URI, THIS [02:50:01] WASN'T JUST A FAILURE OF C P S, THIS WAS THE FAILURE OF THE STATE OF TEXAS AND OUR ELECTRICAL GRID SYSTEM. AND WE ASKED THE STATE TO ADDRESS THIS ISSUE, AND THEY DID NOT. SO HERE WE ARE, HERE WE ARE TRYING TO FIGURE OUT WHAT WE DO TO MAKE SURE THAT WE CAN GET OUR CITY AND OUR PEOPLE THROUGH THIS CRISIS. SO, AS YOU MAY ALREADY KNOW, BASED ON MY COMMENTS FROM THE B SESSION AND RECENT C P SS DISCUSSIONS, UM, MY RESIDENTS STILL HAVE MANY QUESTIONS. THE $5 AMOUNT IS AN AVERAGE FOR MYSELF AND OTHERS IN MY NEIGHBORHOOD. IT'S GOING TO BE MORE LIKE $7 OR $10. WHAT WE'RE HEARING IS THAT RESIDENTS HAVE LITTLE TO NO TRUST IN C P S, AND THEY WANT TRUTHFUL ANSWERS OF WHY THIS FAILURE HAPPENED. AND I, AND I HEAR YOU RUDY, AND I KNOW YOU'RE TRYING, UM, AND I BELIEVE THAT C P S NEEDS TO BE FRONT, UPFRONT, AND BRUTALLY HONEST TODAY, AND PROVIDE OUR CONSTITUENTS WITH POSSIBLE SCENARIOS ON HOW THIS INCREASE WILL IMPACT ALL RATE PAYERS IF IT DOESN'T PASS. SO, RUDY, MY FIRST QUESTION TO YOU IS, HOW COULD THIS POTENTIALLY IMPACT THE CITY'S BOND RATING? SHOULD THIS RATE INCREASE NOT MOVE FORWARD? COUNCILMAN, UH, I, I, I TRIED TO ADDRESS THIS LAST NIGHT IN COUNCILMAN BRAVO'S, UH, SESSION THERE, THERE ARE REALLY THREE OR FOUR DIFFERENT, YOU KNOW, IMPACTS THAT, THAT I'LL, I'LL WALK THROUGH. NUMBER ONE, UH, CERTAINLY, YOU KNOW, IF OUR BOND RATING IS IMPACTED, THAT MEANS, YOU KNOW, ANYWHERE FROM, DEPENDING UPON THE, THE TRANSACTION, 50 TO A HUNDRED MILLION DOLLARS IN ADDITIONAL INTEREST EXPENSES. WE, WE CARRY SIX TO $7 BILLION WORTH OF, OF, OF, OF DEBT, UH, TO, TO MAINTAIN, YOU KNOW, AND, AND INVEST IN OUR SYSTEM. SO, YOU KNOW, EVERY TIME WE GO TO THE MARKETS, WE'RE TALKING HUNDRED, HUNDREDS OF MILLIONS OF DOLLARS. AND SO, YOU KNOW, OUR BOND RATING REFLECTS THE FACT THAT, YOU KNOW, THE, THE, THE, THE INVESTORS HAVE CONFIDENCE IN OUR LEADERSHIP TEAM. THEY HAVE CONFIDENCE THAT WE CAN COME TO THE CITY OF SAN ANTONIO, UH, OUR OWNER FOR, UH, YOU KNOW, SUPPORT, UH, THAT, UH, WE'RE GONNA HAVE AN OPPORTUNITY TO, TO, TO BE SUCCESSFUL. SO, UM, SO INTEREST EXPENSES MEANS WE'RE INVESTING LESS OF THOSE DOLLARS IN OUR SYSTEM AND SENDING MORE OF THOSE DOLLARS TO INVESTORS, UM, YOU KNOW, FOR A HIGHER INTEREST RATE. SO THAT'S NUMBER ONE. NUMBER TWO, IF OUR FINANCIAL CONDITION, YOU KNOW, DEGRADES ENOUGH TO THE POINT WHERE, UH, YOU KNOW, WE CAN'T, UH, UH, PUT DOLLARS INTO OUR, WHAT WE CALL OUR EQUITY ACCOUNT, OUR, OUR REPAIR, REPAIR AND REPLACEMENT ACCOUNT, THEN EVENTUALLY THE CITY PAYMENT WILL BE IMPACTED. YOU KNOW, THE CITY PAYMENT IS, YOU KNOW, KIND OF BLOCK THREE OR FOUR OF WHAT WE, YOU KNOW, WHERE OUR REVENUE GOES, UH, WHEN YOU, WHEN YOU FLOW IT THROUGH OUR FLOW FUNDS. SO, UH, CITY PAYMENT, CERTAINLY AT SOME POINT IN TIME, UH, COULD BE AT RISK. UH, I'VE ALREADY MENTIONED THE FACT THAT, UM, YOU KNOW, OUR ABILITY TO BE RESILIENT WHEN SOMETHING BAD HAPPENS, UH, RESILIENCY MEANS TO BOUNCE BACK, YOU KNOW, WHEN YOU HAVE A MAJOR EVENT, AND IT DOESN'T HAVE TO BE JUST A WEATHER, A WEATHER EVENT. IT COULD BE A CYBER ATTACK. YOU KNOW, CYBER ATTACKS COULD TAKE US DOWN FOR WEEKS IF WE'RE NOT PAYING ATTENTION TO THAT, WHICH IS WHY THAT TECHNOLOGY INVESTMENT, UH, IS SO IMPORTANT. UH, AND THEN JUST THE DAY-TO-DAY RELIABILITY, IF I HAVE TO DECIDE, I'M GONNA SPEND, YOU KNOW, WE, WE TALKED ABOUT THE, THE INFRASTRUCTURE RESILIENCY, ABOUT $31 MILLION OF THIS INVESTMENT, I'M GONNA HAVE TO MAKE THE INVESTMENT THAT THE PUBLIC UTILITY COMMISSION IS MANDATING THAT WE MAKE. SO WHEN I HAVE TO DO SOMETHING THAT'S REQUIRED, YOU KNOW, FOR COMPLIANCE REASONS, THAT MEANS, AND I'M WORKING WITH THE SAME BUCKET OF DOLLARS, I'M TAKING MONEY FROM SOMEWHERE ELSE TO DO THAT, WHICH MEANS THAT'S LESS POLES I'M REPLACING, THAT'S LESS TREES THAT I'M TRIMMING. SO, SO FROM A JUST A DAY-TO-DAY BLUE SKY RELIABILITY STANDPOINT, RELIABILITY WILL BE IMPACTED AS WELL, BECAUSE WE'RE DOING LESS OF THE, OF THE NORMAL MAINTENANCE THAT WE HAVE TO DO TO KEEP OUR SYSTEM UP. AND IS THERE ANY, UH, WERE THERE ANY OTHER RESOURCES OUT THERE THAT, UH, WE COULD HAVE GOTTEN FROM THE STATE, UM, TO, TO HELP LOWER THIS OUTSIDE OF THE ARPA DOLLARS THAT I'M, WE ARE VERY GRATEFUL THAT THE COUNCIL ALLOCATED TO US TO HELP OUR CUSTOMERS. UH, THERE, WE, WE DID, UH, ACTUALLY PUT IN A REQUEST FOR, UH, FEDERAL DISASTER RELIEF FUNDING FROM THE WINTER STORM, UH, YURI, BUT, YOU KNOW, UH, OR ACTUALLY IT WAS A PANDEMIC, UH, AND WE, WE DIDN'T RECEIVE ANY FUNDING FROM THE FEDERAL, UH, GOVERNMENT OF THE STATE GOVERNMENT. SO, UH, THAT IS A POSITION WE TOOK AT THE LEGISLATURE THAT KATHY GARCIA, MY VP, WHO, YOU KNOW, DOES GREAT WORK IN AUSTIN AND DC UH, HAS BEEN ON. AND, UH, UNFORTUNATELY THE LEGISLATURE DIDN'T RESPOND. AND YOU ADDRESSED SOME OF IT NOW WITH THE MISSION DE LAGO PEOPLE. BUT I, WHAT I NEED TO KNOW IS AT THIS TIME, DOES C P S HAVE THE LINEMEN IF WE DID EXPERIENCE ANOTHER WINTER STORM TO GET US BACK UP AGAIN? SO WE HAVE CONTINUED BRINGING IN, YOU KNOW, IT TAKES FOR US, WE GROW OUR OWN [02:55:01] LINEMEN IN SAN ANTONIO, SO WE HIRE 'EM AS UTILITY WORKERS AND TRAINEES. IT MAY TAKE 10 YEARS TO MAKE A LINEMEN THAT IS AS GOOD AT WHAT THEY DO AS WHAT OUR LINEMEN ARE. LET, LET ME REITERATE TO THIS BODY THAT WE HAVE THE BEST LINEMEN IN THE COUNTRY RIGHT HERE IN SAN ANTONIO. WHEN OTHER COMMUNITIES HAVE HURRICANES, THEY'RE CALLING ON SAN ANTONIO TO SEND OUR LINEMEN OVER THERE TO HELP THEM GET BACK UP. SO I'VE GOT TONS OF CONFIDENCE IN, IN, UH, THE, THE, THE WORK OUR LINEMEN DO. UH, WE HAVE CONTINUED TO, TO HIRE TO TRY TO KEEP THOSE NUMBERS UP, BUT, BUT THERE'S GAPS EVERYWHERE RIGHT NOW, COUNCILWOMAN THAT WE'RE TRYING TO, WE'RE TRYING TO WORK ON. AND HOW ABOUT, UH, THE STAFF WITH THE WHEREWITHAL IN THIS SCALE TO DO ROLLING BA BLACKOUTS THIS TIME? WE HAVE COMPLETELY REVAMPED OUR SYSTEM FOR ROLLING BLACKOUTS. THE, AGAIN, OUR CUSTOMERS WEREN'T SO UPSET WITH, THEY, THEY SAW SNOW ON THE GROUND. THEY KNEW THE STATE WAS IN, UH, DISTRESS. THEY WEREN'T UPSET THAT WE WERE CUT, YOU KNOW, THAT, THAT THEY WERE DOWN. THEY WERE UPSET THAT THEY WEREN'T GETTING THE 15 MINUTES OFF AND SOME AMOUNT OF TIME ON. UH, AND SO WHAT WE'VE DONE OVER THE LAST, YOU KNOW, 12 MONTHS HAS REALLY TAKEN A REALLY CRITICAL EYE, UH, OF HOW WE DO ROLLING OUTAGES. AND WITH THE WORK THAT WE'VE DONE THIS YEAR, REALLY FOCUSING IN ON WHAT NEEDS TO BE CRI, YOU KNOW, WHAT WHAT IS THE, YOU KNOW, PROTECTS NATIONAL SECURITY, WHAT, YOU KNOW, PROTECTS PUBLIC SAFETY. WE'VE ADDED, YOU KNOW, ABOUT 125 CIRCUITS BACK IN TO THE SYSTEM THAT CAN ENSURE WE CAN HANDLE THE, THE STATE WAS SHEDDING ABOUT 20,000 MEGAWATTS WORTH OF LOAD, UH, IN FEBRUARY. NOW WE CAN HANDLE EVENT UP TO 25,000 MEGAWATTS, WHICH ACTUALLY MEANS YOU'RE GONNA GET YOUR 15 MINUTES OFF AND SOME AMOUNT OF TIME ON. SO COUNCILWOMAN, WE HAVE DONE THE WORK NECESSARY TO BE ABLE TO MANAGE, UH, AN EVENT OF THAT SIZE IN THE FUTURE. AND WE DO NOW HAVE THE STAFF, BECAUSE I FELT THAT WAS THE STORY THAT WE DIDN'T HAVE THE STAFF THAT FORECASTED JUST HOW BAD THIS COULD TURN. UH, DOES C P SS HAVE THE STAFF NOW? YES, MA'AM. OKAY. UM, I WANT PEOPLE TO UNDERSTAND WHO DISTRICT THREE IS, BECAUSE IT'S, IT'S NOT JUST THAT WE STRUGGLED THROUGH THIS. I HAVE RESIDENTS THAT CAN TAKE ADVANTAGE OF THE HOME ENERGY REBO REBATE PROGRAMS BECAUSE OF THE LOCAL ORDINANCES, BECAUSE THE HOUSES ARE LOOKED AT AS HISTORIC PRESERVATION. THIS ISN'T IN A BUBBLE. THIS ISN'T JUST C P SS. I HAVE RESIDENTS LIVING IN MISSION HISTORIC DISTRICT WITH THOSE CANDY CANE LIGHT FIXTURES THAT ARE CALLING CONSTANTLY TO GET IT REPLACED. THESE ARE THE INFRASTRUCTURE CONCERNS THAT I HAVE. I HAVE ELECTRICAL SUBSTATIONS THAT NEED SCREENING AND LANDSCAPING. THESE ARE THE INFRASTRUCTURE NEEDS THAT I HAVE. AND CHAMBERS, THANK YOU FOR CHIMING IN, BUT I NEED A HIGHER MINIMUM WAGE. I NEED YOU TO COME AND GET THE, IS COMPETITIVE BECAUSE MY PEOPLE NEED TO EARN MORE BECAUSE PROPERTY TAXES INCREASES. INFLATION INCREASES, AND NOW WE'RE ASKING FOR THIS RATE INCREASE. I, I WANT TO BE ABLE TO TRACK HOW IT IS PASSED, THE RATE MOVES THROUGH, UM, IF THE PEOPLE MOVE TO ELIGIBILITY FOR ASSISTANCE AS THIS, IF THIS RATE PASSES ARPA CONVERSATION CITY STAFF, WE ARE GONNA NEED TO HAVE AND LOOK AT MORE UTILITY AND ASSISTANCE. I WANT TO THANK BAN BEN CITY STAFF AND MY REP ON THE RACK WHO WORKED TO TRY AND GET THE RATE LOWERED AND GET ME AS MUCH INFORMATION AS SHE HAD. SHE WORKED SO HARD AND COMMITTED SO MUCH TIME THAT SHE HA SHE HAS NOW RESIGNED. AND SO IN THIS ONGOING DIALOGUE, BECAUSE WE DO NEED TO TALK ABOUT A CRITICAL RATE DESIGN AND RATE STRUCTURE, I WILL SEEK THE APPOINTMENT FOR THE RATE ADVISORY COMMITTEE TO REPRESENT MY DISTRICT, NOT JUST AS COUNCILWOMAN, BUT AS A RATE PAYER, BECAUSE I THINK WE NEED TO MEET, MOVE TO A MORE EQUITABLE RATE STRUCTURE. I ALSO WANT TO HAVE A PER, I WANT TO HAVE A FIRM TIMELINE WITHIN THIS YEAR TO TALK ABOUT THE BOARD'S INCREASE TO INCLUDE SOMEONE THAT HAS AN ENVIRONMENTALIST BACKGROUND OR A CLIMATE CHANGE EXPERTISE. IF NOT, WE ARE GOING TO NEED TO LOOK AS A COUNCIL AS OVERSEEING EVEN MORE C P SS. I WANNA RECOGNIZE C P S AND THEIR EFFORTS. THEY, THEY, I TOLD THEM OF THE, WHEN I GOT ELECTED, I SAID, YOUR COMMUNICATION IS LACKING. AND YOU WORKED ON THIS. YOU HAD HELD OFFICE HOURS AT MY FIELD OFFICE. YOU KNOCKED ON DOORS AND YOU HELD UTILITY ASSISTANCE, FA FAIRS. YOU WORKED TO REGAIN MY TRUST. I NEED YOU TO WORK TO REGAIN THE TRUST. AND MY CONSTITUENCIES, CONSTITUENCIES, BECAUSE OF MY COUNCIL COLLEAGUES WORK, UH, COUNCILMAN KEO HDA FOR THE AUDIT, UH, COUNCILMAN SANDOVAL AND DR. ADRIANA ROCHA GARCIA ON THE, UM, THE CLIMATE. AND ALONG WITH [03:00:01] MY OTHER COUNCIL COLLEAGUES, I WILL BE SUPPORTING THIS TODAY. THANK YOU. COUNCIL MEMBER VRAN. COUNCIL MEMBER PERRY. THANK YOU, SIR. WOW. A LOT OF DISCUSSION BACK AND FORTH. I'VE HEARD A LOT OF STUFF ABOUT, UH, THIS IS POLITICS, UH, LEADERS VERSUS FOLLOWERS, WHAT THE TRUTH IS ON AND ON AND ON. UM, THAT ALL NEEDS TO BE SET ASIDE. THERE'S DIFFERENT OPINIONS ABOUT WHAT THIS INCREASE IS ALL ABOUT. UM, RUDY, I I DO HAVE A COUPLE OF QUESTIONS FOR YOU. UM, YOU KNOW, WE DIDN'T GET ANY LEGISLATIVE HELP THIS LAST LEGISLATURE, AND I WAS VERY DISAPPOINTED IN THAT. I, I SAID, MAN, IF THIS ISN'T A RAINY DAY EVENT, WHAT IS, THERE SHOULD HAVE BEEN SOME, UM, HELP FROM THE STATE AS FAR AS DOLLARS GO. AND I'M TALKING ABOUT NUMBER FIVE HERE. UM, BUT ON THE OTHER HAND, YOU KNOW, WE, WE RACKED UP, YOU SAID, ABOUT A BILLION DOLLAR, BILLION DOLLARS WORTH OF BILLS. UM, IT GALLS ME TO LOOK AT OUR NEIGHBORS, 70, 70 MILES NORTH OF US, THAT THEY MADE MONEY OUT OF THIS DEAL AND WE ENDED UP WITH A BILLION DOLLAR BILL. I DON'T UNDERSTAND THAT. I STILL DON'T UNDERSTAND THAT. I THINK THAT NEEDS TO BE EXPLAINED. WE NEED TO BENCHMARK OURSELVES. WHAT DID, WHAT DID AUSTIN DO VERSUS WHAT WE DID? AND SO I WOULD LIKE TO SEE, UH, UH, INFORMATION COMING BACK FROM THAT AS TO WHAT THE DIFFERENCES WERE AND WHAT DIDN'T C P SS DO VERSUS AUSTIN IN THAT, IN THAT CASE. SO I'D LIKE TO GET THAT IN THE FUTURE HERE. YOU KNOW, UM, I'VE SAID THAT THIS IS THE WORST TIME FOR A RATE INCREASE, AND EVERYBODY SAYS, WELL, YEAH, YOU KNOW, WIND'S A GOOD TIME. WELL, YEAH, THERE ARE BETTER TIMES THAN RIGHT NOW. I MEAN, WE'RE DEALING WITH COVID, WE'RE DEALING WITH INFLATION, WE'RE DEALING WITH PROPERTY TAXES THAT KEEP GOING UP. WE'VE GOT LOSS OF JOBS AND WAGES OUT THERE. ALL OF THIS IS REALLY IMPACTING A MAJOR SECTOR OF SAN ANTONIO. WE ARE ONE OF THE POOREST LARGE CITIES IN THE US AND YET WE KEEP PILING ON THESE INCREASES ON PEOPLE THAT REALLY CAN'T AFFORD IT. THEY, THEY'RE ON FIXED INCOMES, UH, LOW WAGES AND RETIREES THAT DON'T GET INCREASES IN THEIR SOCIAL SECURITY BENEFITS. UM, I I, I WOULD SAY THAT THIS ON NUMBER FIVE, I, I, I STILL THINK WE NEED TO DO SOME INVESTIGATING. I MEAN, Y'ALL, Y'ALL ALREADY COVERED 418 MILLION, UH, DOLLARS OF THAT 1 BILLION. YES, SIR. THAT, THAT'S A PASS THROUGH. YOU KNOW, THAT'S NOT REVENUE THAT COMES TO SAN ANTONIO. THAT'S AN EXPENSE THAT WE JUST FLOW THROUGH TO DIRECTLY TO THE CUSTOMERS. UH, YOU KNOW, WE HAVE BEEN WORKING TO TRY TO SETTLE AS MANY OF THOSE CASES AS WE CAN. SOME OF IT IS JUST FUEL THAT, YOU KNOW, WAS PRICED RIGHT, THAT WE NEEDED TO PAY, THAT WE, THAT WE DID. SOME OF IT WAS, UM, YOU KNOW, UH, COSTS ASSOCIATED WITH, UH, ACTIVITY, YOU KNOW, BUYING, SELLING POWER ON ERCOT THAT WAS JUST AND REASONABLE AND WE PAID. AND THEN SOME OF IT WAS SETTLEMENTS. AND, YOU KNOW, SO, YOU KNOW, THE WORK THAT WE'VE DONE REALLY IS TO EXTRACT THE MAXIMUM AMOUNT OF VALUE OUT OF NEGOTIATING WITH, YOU KNOW, COUNTERPARTY, UH, TO TRY TO COME UP WITH, UH, A WAY TO, YOU KNOW, TO TO, TO GET, YOU KNOW, MORE VALUE OUT OF WHAT WE BELIEVE WE'RE EXORBITANT, EXORBITANT PRICES. AND OUR TEAM HAS BEEN WORKING, YOU KNOW, TREMENDOUSLY TO, TO WHITTLE DOWN, YOU KNOW, SOME OF THOSE SMALLER AMOUNTS TO AMOUNT THAT BENEFITS OUR COMMUNITY. SO WHEN YOU ADD ALL THAT UP, ABOUT $418 MILLION, THAT IF WE DON'T PASS THROUGH, UH, IN A MEANINGFUL WAY, AND THIS REGULATORY ASSET IS A THOUGHTFUL WAY TO, TO SPREAD THIS OUT, IT WOULD FLOW, IT WOULD NEED TO FLOW RIGHT THROUGH OUR NORMAL FUEL EXPENSE BY THE END OF THE YEAR, WHICH IS FOR OUR FISCAL YEARS. THE END OF JANUARY MEANS THAT CUSTOMERS WOULD SEE A THOUSAND DOLLAR BILLS. AND WE'RE NOT GONNA LET THAT HAPPEN. OKAY. SO HAVE YOU PAID FOR THAT 418 NOW? YES, SIR. THOSE DOLLARS HAVE BEEN PAID. THOSE ARE ALREADY PAID. PAID, PAID. WHERE DID THAT MONEY COME FROM? WE USE CASH, YOU KNOW, CASH. WE HAVE AVAILABLE, YOU KNOW, UH, IN OUR EQUITY ACCOUNT AND A, UH, AND A, YOU KNOW, COMBINATION OF SHORT-TERM DEBT. UH, OKAY. BUT WHAT WE'RE DOING HERE IS TAKING THE SHORT-TERM DEBT THAT WE'VE USED TO PAY THAT, AND WE'RE TAKING THAT LONG. SO, SO WE'LL, YOU KNOW, WE'LL GO OUT AND WE'LL USE LONG-TERM DEBT OVER 25 YEARS WITH THE REVENUE CERTAINTY THAT WE'LL GET, UH, FROM THE, THE REGULATORY ASSET STRUCTURE TO BE ABLE TO, YOU KNOW, TO, TO TAKE CARE OF THAT OVER THE LONG TERM. OKAY. YOU SAID YOU'VE ALREADY PAID THE 418 MILLION? YES, SIR. NOW, ARE YOU TALKING ABOUT THIS REGULATORY ASSET TO PAY FOR THE ADDITIONAL 600 MILLION? NO, SIR. FOUR 18 MILLION, [03:05:01] UH, HAS BEEN HELD ON OUR BOOKS. WE HAVEN'T PASSED IT ALONG TO CUSTOMERS. AND WHAT WE'RE DOING HERE IS ALLOWING US, YOU KNOW, TO PLAN FOR THAT OVER THE NEXT 25 YEARS SO THAT WE CAN, YOU KNOW, LESSEN THE BURDEN ON OUR CUSTOMERS. OKAY. YOU KNOW, ALL AT ONE TIME. OTHER UTILITIES HAVEN'T DONE IT THAT WAY. SOME UTILITIES PASSED IT ON. YOU SAW, UH, STORIES OF $15,000 MONTHLY BILLS. 'CAUSE THEY JUST FLOATED THROUGH LIKE THEY NORMALLY WOULD. SOME UTILITIES HAVEN'T DONE IT 25 YEARS, THEY'VE DONE IT, YOU KNOW, 10, 15 YEARS ON AVERAGE. UTILITIES HAVE PASSED ON THEIR FUEL EXPENSES, UH, AT A RATE OF ABOUT 11 BUCKS A MONTH. AND THE BIG, AND I'LL LEMME JUST GO BACK TO ONE OF YOUR COMMENTS. THE BIGGEST DIFFERENCE BETWEEN US AND AUSTIN ENERGY IS THEY DON'T OWN THEIR GAS SYSTEM. WE DO, WE OWN THE SECOND LARGEST PUBLIC GAS SYSTEM IN THE COUNTRY. WE, YOU KNOW, TO, TO JUST KEEP THE GAS GOING, TRYING TO KEEP PEOPLE'S HOMES, YOU KNOW, WARM DURING THAT TIME PERIOD. THAT'S WHAT DROVE OUR, OUR OUR GAS PRICE. THAT'S THE DIFFERENCE BETWEEN US AND AUSTIN ENERGY. I'LL BE GLAD TO, TO GIVE YOU A PAPER THAT EXPLAINS THAT. YEAH. BUT, BUT THE PRIMARY REASON IS THEY DON'T OWN THEIR GAS COMPANY. TEXAS GAS SERVICE SERVES GAS IN AUSTIN. OKAY. WELL MAYBE THAT'S A LESSON LEARNED. YES, SIR. UM, BUT THE 400, YOU SAID YOU PAID THE 418 MILLION WITH CASH AND SOME SHORT TERM, WELL, SHORT TERM DEBT. YES, SIR. OKAY. SO HOW MUCH CASH DO YOU HAVE LEFT? HOW YOU PAID 418 MILLION OUT OF WHAT, WHAT IS THAT LEAVING US? IN OUR, OUR CASH, SIR, WE HAVE ANYWHERE FROM, YOU KNOW, 600, $800 MILLION IN CASH ON HAND. UM, BUT IN TERMS OF WHAT WE PAY, THAT 418 MILLION OVER TWO THIRDS OF THAT WAS JUST SHORT TERM DEBT. SO IT'S PUTTING IT ON A CREDIT CARD, BASICALLY. OKAY. AND SO WE CAN'T, YOU KNOW, YOU CAN'T HAVE A BALANCE ON A CREDIT CARD FOR 25 YEARS. SO RU'S EXACTLY RIGHT IN TERMS OF HOW WE EXPLAINED IT. WE'RE GONNA TAKE IT OFF THE CREDIT CARD AND PUT IT ONTO A LONG TERM LOAN. WE PAID MAYBE ABOUT SIX $60 MILLION TO CASH. UM, AND THAT'S ABOUT ALL WE COULD AFFORD FROM A CASH PERSPECTIVE TO KEEP UP OUR METRICS OF BEING OVER 150 DAYS CASH ON HAND. SO IT'S PAY ME NOW OR PAY ME LATER, IS WHAT YOU'RE SAYING. YEAH. OKAY. YEAH. ALRIGHT, GREAT. MM-HMM. . WELL, THAT'S, UH, THAT'S ALL MY QUESTIONS, BUT YEAH, RUDY, I WANNA SEE SOMETHING ABOUT WHAT THE DIFFERENCE WAS BETWEEN AUSTIN AND SAN ANTONIO. IT, IT MAKES NO SENSE TO ME. I, LET ME TALK A LITTLE BIT ABOUT NUMBER SIX. NOW, UH, I'VE ALREADY TALKED ABOUT THIS BEING THE WORST TIME TO DO SOMETHING LIKE THIS, ESPECIALLY FOR THOSE THAT ARE ON FIXED INCOMES. THEY, THEY CAN'T AFFORD THIS, YOU KNOW, AND I'VE HEARD THE SAME OLD ARGUMENT, WELL, IT'S ONLY A FEW DOLLARS. WELL, I CAN TURN THAT AROUND AND SAY, YOU KNOW WHAT? I TRIED TO GET A HOMESTEAD EXEMPTION PASSED, IT'S ONLY, AND EVERYBODY SAID, WELL, IT'S ONLY A FEW DOLLARS, YOU KNOW, THAT'S NOT GONNA HELP. AND HERE WE'RE SEEING THE OPPOSITE. WELL, IT'S ONLY A FEW DOLLARS. PEOPLE CAN'T AFFORD IT. YOU KNOW, IT KEEPS GETTING ADDED AND ADDED AND ADDED, LIKE I SAID, PROPERTY TAXES, INFLATION RIGHT NOW, UM, THE COVID ISSUES THAT WE'VE HAD, LOSS OF JOBS AND INCOME, UM, YEAH, HERE'S A PERFECT EXAMPLE WHERE A HOMESTEAD EXEMPTION COULD HAVE HELPED A WHOLE LOT OF PEOPLE IN THIS COMMUNITY PUT UP WITH AN INCREASE IN THEIR UTILITY BILLS. LEMME TELL YOU A LITTLE STORY I JUST HEARD, UM, THIS FAMILY WAS TRYING TO GET IN TOUCH WITH THEIR MOTHER, AND THIS, IT WASN'T DURING THE COVID, THIS WAS HERE RECENTLY, DURING SOME OF THESE COLD SNAPS, THEY COULDN'T GET IN TOUCH WITH HER. SO SOMEBODY WENT BY TO CHECK ON HER AND SHE WAS THERE, BUT SHE WAS IN A SMALL ROOM IN THE HOUSE ALL BUNDLED UP AND IT WAS LIKE 40 DEGREES IN THE HOUSE. AND THEY SAID, MOM, WHAT'S GOING ON HERE? WELL, I'M SCARED OF RUNNING MY HEATER ELECTRICITY BECAUSE I MAY NOT BE ABLE TO AFFORD THAT COST. THAT'S WHAT'S GOING ON HERE IN SAN ANTONIO WITH OUR ELDERLY AND THOSE PEOPLE ON FIXED INCOMES. THEY'RE TRYING TO CONSERVE THEIR WAY OUTTA THIS AND TO SAVE MONEY THAT WAY. AND I, I DON'T THINK THAT'S A RIGHT THING FOR US TO DO. I THINK WE NEED TO MANAGE THIS BETTER OVER TIME. WHERE'S, WHERE'S THAT CHART? I ASKED FOR A CHART. I ASKED C P S TO GIMME A CHART OF THEIR TOTAL REVENUE, UM, SINCE BEFORE THE LAST RATE INCREASE. SO IF WE TAKE, TAKE A LOOK AT THIS, LOOK AT 2002 14, UM, WHAT A UPHILL, UH, SLOPE. A LOT OF EXTRA REVENUE. MY QUESTION IS, WHAT HAPPENED TO THAT REVENUE? DID WE DO ANYTHING TO, UH, PREPARE FOR THIS? UH, AND THEN IT WENT, TOOK A COUPLE OF DOWNWARD TRENDS, AND THEN IT WENT RIGHT BACK UP TO THROUGH 2019. AND THEN WE SEE IN 2020 AND 2021, AND WE KNOW WHAT'S GOING ON. UH, THERE IS A DECREASE BECAUSE OF THE COVID EFFECT, UM, AND THE ECONOMY, OVERALL ECONOMY. SO PEOPLE ARE CONSERVING, PEOPLE ARE NOT USING AS MUCH ENERGY AS THEY DID [03:10:01] BEFORE. SO I JUST WANT TO LOOK AT THIS AND THEN SAY, WELL, WE GOT THIS RATE INCREASE, 3.85 IS ANOTHER $73 MILLION EACH YEAR ADDED ONTO THAT. AND THEN IN TWO YEARS, IT'S A 5.5% INCREASE. AND HOW MUCH DOES THAT WORK OUT TO? ABOUT A HUNDRED MILLION DOLLARS, SOMETHING LIKE THAT. UH, 5.5 IS PROB PROBABLY ABOUT A HUNDRED MILLION, RIGHT? ABOUT A HUNDRED MILLION DOLLARS. GIVE. SO $173 MILLION EACH YEAR, UH, STARTING, YOU KNOW, THIS YEAR IF WE, UM, APPROVE THIS RATE INCREASE AND THEN ANOTHER TWO YEARS, ANOTHER 200 A HUNDRED MILLION DOLLARS. SO YOU'RE TALKING ABOUT $273 MILLION OVER THE NEXT FIVE YEARS. AND MY QUESTION, AND, AND YOU'VE SAID IT BEFORE, THAT UTIL MAJOR UTILITIES LIKE THIS HAVE, HAS LIKE A 10 YEAR, 10 YEAR BUDGET ON PROJECTIONS. OKAY. I'LL CHIME BACK IN. THANK YOU, RUDY. THANK YOU MR. PERRY. THANK YOU. COUNCIL MEMBER PERRY. UM, WE'LL GO NOW TO THANK YOU, MAYOR. UH, I WANTED TO THANK RUDY AND HIS TEAM AS WELL AS BEN AND HIS TEAM, UM, FOR THE WORK OVER THE LAST FEW MONTHS. UH, THE BRIEFINGS, THE COMMUNITY ENGAGEMENT, UH, ENSURING THAT OUR RESIDENTS ARE CONNECTED, WALK THROUGH THE APPLICATION PROCESS IF THEY'RE AT RISK OF DISCONNECTIONS. I ALSO WANNA THANK OUR DISTRICT FIVE RESIDENTS WHO HAVE BEEN CALLING OUR OFFICE, ASKING QUESTIONS ABOUT THE C P S INCREASE, UH, STATING THEIR POSITION AND ASKING QUESTIONS OF WHERE OUR OFFICE STOOD. I BELIEVE THAT I WAS ELECTED TO LEAD AND NOT IN THE OPPOSITE DIRECTION OF MY CONSTITUENTS. AND WHILE THERE ISN'T A GOOD TIME FOR A RATE INCREASE, WHAT I'VE HEARD TODAY FROM THE FOLKS WHO HAVE GIVEN PUBLIC COMMENT, THAT THAT TIME FOR THE RATE INCREASE IS ONCE WE'VE RESTRUCTURED THE INEQUITABLE RATE STRUCTURE. SO WITH THAT BEING SAID, YOU KNOW, I THINK, UM, I WOULD LIKE TO THANK MY COUNCIL COLLEAGUES FOR THE VERY RICH CONVERSATIONS THAT WE'VE HAD. AND WHETHER YOU SUPPORT OR OPPOSE THE RATE IN INCREASE OF CONVERSATIONS, THESE CONVERSATIONS ARE DIFFICULT TO HAVE. UM, BUT I'M LESS CONCERNED WITH THE DIFFICULT CONVERSATIONS ON THIS DAIS AND C P SS BOARDROOMS, AND I'M MORE CONCERNED WITH THE DIFFICULT CONVERSATIONS THAT CONTINUE TO TAKE PLACE AT DINNER TABLES. AT ONE POINT C P S HAD OVER 182,000 PAST DUE CUSTOMERS, AND MORE THAN A THIRD WERE ELIGIBLE FOR DISCONNECTION. THIS TELLS ME THAT THERE IS ALREADY A PROBLEM WITH THE CURRENT RATE STRUCTURE GOING INTO THIS PROCESS. MY GUIDING QUESTION WAS, BEFORE PLACING MORE FINANCIAL BURDEN ON WORKING FAMILIES AND SMALL BUSINESSES, DID C P SS AND THIS COUNCIL EXPLORE EVERY OTHER OPTION ASIDE FROM A RATE INCREASE AFTER BEING PART OF THIS PROCESS? MY OBSERVATION IS NO. A RATE INCREASE WAS NOT A RECOMMENDATION OF LAST RESORT. IN FACT, THE ORIGINAL RECOMMENDATION WAS TO INCREASE RATES BY 13.4%. THERE ARE SEVEN, THERE ARE SEVERAL OTHER OPTIONS BESIDE A RATE, BESIDE RATHER A RATE INCREASE THAT WERE EITHER NOT ADDRESSED OR GLOSSED OVER WITHOUT ANY REAL ANSWERS OR COMMITMENTS. THE FIRST THING IS RATE RESTRUCTURING. INSTEAD OF MAKING RESIDENTS AND SMALL BUSINESSES BEAR THE BRUNT. WHY NOT AT TAKE A FIRST LOOK AT RESTRUCTURING RATES? SO HIGHER VOLUME USERS ARE PAYING FOR USING MORE POWER RATHER THAN BEING INCENTIVIZED TO USE MORE INCLINING TIERED RATES PROMOTE ENERGY EFFICIENCY AND CONSERVATION BENEFIT, BENEFITING RATE PAYERS WHO REDUCE USAGE AND SAVING UTILITIES FROM THE COST OF BUILDING NEW GENERATORS. INSTEAD, CPSS RATE STRUCTURE INCENTIVIZES LARGE COMMERCIAL AND INDUSTRIAL RATE PAYERS TO USE MORE ENERGY WITH LOWER RATES INSTEAD OF CONSERVING ENERGY. SO, JUST TO PUT THIS INTO CONTEXT, ACROSS THE GRID, THERE ARE ABOUT 861,000 C P S ENERGY CUSTOMERS. 88 PER 88% OF THOSE ARE RESIDENTIAL ACCOUNTS, AND 9% ARE COMMERCIAL AND INDUSTRIAL ACCOUNTS. ON AVERAGE COMMERCIAL AND INDUSTRIAL ACCOUNTS USE OVER 54% OF CCPS CP S'S TOTAL ENERGY VOLUME. AGAIN, 54% OF CP S'S TOTAL ENERGY VOLUME. BUT WHEN YOU LOOK AT THE PERCENTAGE OF REVENUE, COMMERCIAL AND INDUSTRIAL COUNTS ARE RESPONSIBLE FOR, IT'S A MEASLY 39%. RESIDENTS PROVIDE ALMOST HALF OF THE REVENUE, 48% WHILE COMMERCIAL AND INDUSTRIAL ONLY PROVIDE 39% WHILE USING UP MORE THAN HALF OF THE ENERGY PRODUCED IN SAN ANTONIO. THAT THAT'S, THAT'S ABSURD. AND IF IT DOESN'T SHOW YOU THE EQUITABLE RATE STRUCTURE, I'LL HOUSE OUT. ANOTHER EXAMPLE TO FURTHER ILLUSTRATE, WHILE THE RATE RESTRUCTURING PROCESS SHOULD COME BEFORE A RATE ADJUSTMENT, A CERTAIN DATA DATA CENTER, WHICH USES ABOUT 500,000 KILOWATTS A MONTH, WOULD PAY ABOUT 34,000 PER MONTH IF THEY WERE CHARGED THE SAME RATE AS RESIDENTS. INSTEAD, THIS DATA CENTER HAS A SPECIAL COMMERCIAL RATE DEAL WHERE THEY PAY ABOUT 17,000 PER MONTH, LESS THAN 3.50 CENTS PER KILOWATT. AND THAT'S JUST ONE COMMERCIAL AND INDUSTRIAL ACCOUNT THAT SHOULD BE PAYING THEIR FAIR SHARE, WHICH MEANS OUR RESIDENTS ARE SUBSIDIZING HIGH [03:15:01] ENERGY USERS. AND TO SUGGEST THAT FOLKS, THE WORKING PEOPLE OF SAN ANTONIO DON'T UNDERSTAND THE NUANCES AND THE IMPLICATION OF THIS RATE INCREASE IS EXTREMELY INSULTING TO THE WORKING FAMILIES AND RESIDENTIAL RATE PAYERS OF THE CITY. I ALSO WANT TO MENTION THAT LIKE WORKING FAMILIES, SMALL AND MICRO BUSINESSES OWNERS DO NOT ENJOY THESE SWEETHEART DEALS THAT LARGE COMMERCIAL AND INDUSTRIAL RATE PAYERS DO. I BET THAT IF WE TOOK A CLOSER LOOK AT READJUSTING ALL THESE SPECIAL DEALS WITH LARGE COMMERCIAL AND INDUSTRIAL, UH, CUSTOMERS, THERE WOULDN'T BE SUCH A NEED TO STICK IT TO THE LITTLE GUY. I CAN ALREADY HEAR THE COUNTER ARGUMENTS. UM, BIG BUSINESS MEANS JOBS WHILE BIG BUSINESS EXISTS ON THE BACKS AND THE WORK AND THE SWEAT AND THE TEARS OF WORKING CLASS. HOW MANY OF THE BIG BUSINESSES WHO ENJOY THESE SWEETHEART DEALS RATES HAVE EMPLOYEES WHO STILL NEED UTILITY ASSISTANCE? LOCAL BUSINESSES HAVE EXTREMELY LOW RATES PER KILOWATT, AND SOME DO NOT EVEN CREATE EMPLOYMENT OPPORTUNITIES OR PROVIDE OTHER COMMUNITY BENEFITS. EVEN OUR LOCAL INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL I B U LOCAL 60 STOOD IN SOLIDARITY WITH WORKING CLASS FAMILIES. WHEN THIS, WHEN SUPPORT FOR THIS RATE INCREASE, UH, WENT TO THE LOCAL COUNCIL, THEY VOTED AGAINST VOTING TO, UM, SUPPORT THIS INCREASE. SO THERE'S ENOUGH OF THIS CORPORATE WELFARE AND THERE'S ENOUGH OF BUSINESS AS USUAL. WE WEREN'T ELECTED. I WAS NOT ELECTED TO RUBBER STAMP UNTIL MY CONSTITUENTS, YOU JUST DON'T UNDERSTAND NEXT CONTRIBUTIONS IN AID OF CONSTRUCTION. WHY DID C P S NOT LOOK AT ADJUSTING THE CONTRIBUTIONS IN AID OF CONSTRUCTION FORMULA? THE CONTRIBUTIONS MADE BY THOSE WHO CONTINUE TO EXPAND AND STRESS THE GRID SHOULD BE INCREASED TO REPRESENT MORE SIGNIFICANT CONTRIBUTION. THE FULL BURDEN FOR THESE LINE EXTENSIONS, PARTICULARLY FOR NEW DEVELOPMENTS, SHOULD BE BORNE BY THOSE WHO HAVE THE MOST BENEFIT FROM THEM. AGAIN, GROWTH SHOULD PAY FOR GROWTH. INNER CITY RATE PAYERS SHOULD NOT CONTINUE TO SUBSIDIZE NEW DEVELOPMENTS WHICH INCREASE URBAN SPRAWL AND PLACE MORE STRAIN ON TRANSPORTATION, UTILITIES, ENVIRONMENTAL SUSTAINABILITY, AND OTHER CRITICAL INFRASTRUCTURE. NEXT, I WOULD LIKE TO SPEAK BRIEFLY ON THE CREATION OF A REGULATORY ASSET RELATED TO THE COST INCURRED BECAUSE OF WINTER STORM URI, ALONG WITH THE BASE RATE INCREASE, THIS ADDITIONAL CHARGE GIVES ME PAUSE. WHEN YOU LOOK AT AUSTIN ENERGY, A PUBLICLY OWNED UTILITY, JUST LIKE C P S, THEY WERE ABLE TO STAY IN THE BLACK BY TENS OF MILLIONS OF DOLLARS AFTER WINTER STORM URI HIT. YET, C P SS IS IN THE RED FOR ALMOST 1 BILLION. THE CITY OF AUSTIN ALSO DID NOT INCLUDE A BASE RATE INCREASE WHEN THEY DISCUSSED THEIR ENERGY RATES LAST NOVEMBER. WHY SHOULD C P SS CUSTOMERS WHO ALSO HAD THEIR POWER CUT OFF DURING A STORM, BE ASKED TO PAY FOR THE PRICE FOR A LONG MISMANAGEMENT THAT LED TO THIS DEBT? I CERTAINLY DON'T THINK THAT IT'S FAIR, ESPECIALLY WHEN SOMEONE, WHEN SOME OF THESE ENERGY INTENSIVE BUSINESSES WHO ENJOY THESE NIFTY RATES HAVE PREVIOUSLY LOBBIED THE GOVERNOR, THE STATE LEGISLATOR LEGISLATURE RATHER ERCOT AND P P P U C TO NOT REQUIRE WEATHERIZATION. SO THIS IS ALL INTERCONNECTED. NOW, I WOULD LIKE TO ADDRESS SOME OF THE CONCERNS WE'VE HEARD STATING THAT DELAYING OR OPPOSING THIS RATE INCREASE WOULD IMPACT CREDIT RATINGS AS WELL AS THE CITY'S GENERAL FUND. I JUST WANT TO BE CLEAR THAT OPPOSING THIS INCREASE DOES NOT MEAN A REDUCTION TO THE CURRENT GENERAL FUND, NOR DOES IT MEAN THAT CP S'S ANNUAL PAYMENT OBLIGATION TO THE CITY WOULD DECREASE. AND AS FAR FOR CREDIT RATINGS, THERE ARE NUMEROUS FACTORS WHICH CAN IMPACT A CREDIT RATING, FREQUENT CHANGES IN LEADERSHIP, LOW PUBLIC CONFIDENCE, AS WELL AS THE NEGATIVE IMPACTS OF THIS PANDEMIC. IF THIS RATE INCREASE LEADS TO MORE PAST DUE BILLS FROM RESIDENTS, THAT WOULD ALSO IMPACT, UM, RATINGS. THERE'S NO NEED FOR US TO RUSH INTO THIS BAD DECISION. HOW THIS ITEM IMPACTS BOND HOLDERS ON WALL STREET MATTERS TO ME FAR LESS THAN HOW IT'S GOING TO IMPACT MY DISTRICT FIVE FAMILIES. WE AS COUNCIL MUST LOOK AT THE CURRENT STATE OF SAN ANTONIO BEFORE MAKING SUCH A CONSEQUE CONSEQUENTIAL DECIS DECISION. IN THE PAST YEAR LOAN, THE LOCAL MEDIAN RENT HAS INCREASED BY 29%. SEVERAL RECENT REPORTS INDICATE THAT THE COST OF RENT IN SAN ANTONIO IS OUTPACING AUSTIN. AND WITH THE PASSAGE OF THIS RATE INCREASE WE WOULD BE PAYING, OUR RESIDENTS WOULD BE PAYING A HIGHER RATE THAN AUSTIN. THE COST OF LIVING IS GOING UP SIGNIFICANTLY FROM GROCERIES TO FUEL. THIS RATE INCREASE IS ESSENTIALLY AN AUSTERITY MEASURE FOR WORKING CLASS CITY, STILL FOR A WORKING CLASS CITY THAT'S STILL GRAPPLING WITH HEALTH, SOCIAL, AND ECONOMIC IMPACTS OF A MULTI-YEAR GLOBAL PANDEMIC. C P S ENERGY ALSO PLANS TO COME BACK FOR ANOTHER INCREASE AND THEN ANOTHER. AND EACH TIME MORE AND MORE RESIDENTS WILL BE NICKED AND DIMMED OUT OF A MEAL, OUT OF THEIR PRESCRIPTIONS AND ALSO OUT OF THEIR HOMES. AND I'LL KEEP REPEATING THIS, DISCONNECTIONS AND NO UTILITIES LEAD TO NOTICES TO VACATE. SO A A AGAIN, THIS IS ALL INTERCONNECTED AND IF APPROVED, THE AVERAGE BILL IN SAN ANTONIO WOULD JUMP AHEAD TO THE AVERAGE BILL OF AUSTIN AND HOUSTON. AND WE'RE ALREADY SEEING [03:20:01] OUR RENTS OUTPACE BOTH. WE'RE STILL IN THE MIDDLE OF A PANDEMIC PRE COVID. MANY FAMILIES WERE ALREADY LIVING PAYCHECK TO PAYCHECK. NOW. MANY NEW FAMILIES ARE LIVING PAYCHECK TO PAYCHECK. SOME HAVE NO PAYCHECK OR ARE LIVING ON FIXED INCOMES. AND JUST YESTERDAY, OVER 7,700 NEW C O CASES WERE REPORTED THE HIGHEST AMOUNT IN A SINGLE DAY SINCE THE PANDEMIC BEGAN. I WAS HOPEFUL THAT THERE WAS SUPPORT TO INITIATE A THIRD PARTY AUDIT AHEAD OF MY RATE INCREASE VOTE. IT MAKES PERFECT SENSE TO LOOK UNDER THE HOOD TO SEE WHERE C P S CAN POTENTIALLY MAKE SOME FINANCIAL STRUCTURAL IMPROVEMENTS. IT SEEMS LIKE BAD NEGOTIATION, NEGOTIATION TO GIVE C P S ENERGY WHAT THEY WANT FIRST WITHOUT SECURING OUR COMMITMENTS IN WRITTEN FORM TO BE CODIFIED WITH APPROVAL. WE, AS COUNSEL, ARE TOTALLY LOSING OUR LEVERAGE TO MAKE CRITICAL IMPROVEMENTS TO THE RATE STRUCTURE AS WELL AS THE ORGANIZATIONAL CULTURE AT C P S C P S HAS NOT REVIEWED CHANGES TO THE RATE STRUCTURE OR SOUGHT OUT ANY OTHER FUNDING STRATEGIES OTHER THAN A RATE INCREASE. I AGREE. ANY THIRD PARTY AUDIT OF C P S SHOULD BE COMPLETED BEFORE A RATE. UH, RATES ARE INCREASED TO ENSURE RESIDENTS ARE NOT SUBSIDIZING RATES FOR HIGHER USAGE CUSTOMERS, NOR PAYING FOR THE MISMANAGEMENT OF C P SS. OVER A HUNDRED THOUSAND FAMILIES ARE PASSED DUE UNDER ACCOUNTS, TENS OF THOUSAND MORE AT RISK OF DISCONNECTION. AND THAT IS UNDER THE EXISTING RATE STRUCTURE. THANK YOU. COUNCIL MEMBER CASTILLO. GO NOW TO COUNCIL MEMBER. BRAVO. THANK YOU MAYOR. MM-HMM. . UM, YOU KNOW, TODAY WE'RE VOTING ON A 3.5, 3.85% RATE INCREASE, BUT THE CONVERSATION WE'RE HAVING IS MUCH BIGGER THAN THAT. UM, AND, AND WHAT'S PRESENT IN PEOPLE'S MINDS IS THE WINTER STORM, HOW WE WERE FAILED BY OUR UTILITY. UM, WHAT'S PRESENT IN PEOPLE'S MINDS IS WHAT IS, HOW STABLE IS THIS UTILITY THAT WE OWN? AND WHAT DOES THE FUTURE LOOK LIKE? WHAT DOES THE VISION FOR C P S ENERGY? AND, YOU KNOW, I CAN'T HELP BUT THINK BACK TO THE DAYS WHEN I WAS SLEEPING WITH FIVE SHEETS AND EIGHT BLANKETS. I'LL NEVER FORGET THAT. AND EVERYBODY IN SAN ANTONIO HAS THEIR OWN UNIQUE STORY OF HOW THEY STRUGGLED AT THAT TIME. AND SOME OF US HOLD THAT SENTIMENT TODAY. I THINK SOME PEOPLE WANT TO PUNISH C P SS ENERGY. UM, SOMEBODY WHO SPOKE UP IN, UH, PUBLIC COMMENTS TODAY SAID, DON'T LET THEM GET AWAY WITH A SLAP ON THE WRIST. AND I SHARE THE SENTIMENT THAT WE NEED TO MAKE SURE THAT WE HAVE A UTILITY THAT'S ACCOUNTABLE. AND SOME PEOPLE ARE SAYING, VOTE NO. AND ON MY SOCIAL MEDIA ACCOUNTS, THEY'RE SAYING, VOTE NO, OR WE'RE GONNA VOTE YOU OUT. UM, AND, UH, I JUST WANNA SAY THAT IT'S NOT ABOUT ME. IT'S ABOUT WHAT? IT'S ABOUT THE FUTURE OF OUR CITY. AND C P SS ENERGY IS A VITAL PART OF THE FUTURE OF OUR CITY. AND, YOU KNOW, I WANT TO, MY, I'M GONNA BE FOCUSED ON THE LONG VIEW AND WHAT IS BEST FOR OUR CITY HERE. BACK IN SEPTEMBER, GILBERT GARCIA WROTE AN ARTICLE ABOUT ME AND, UH, MY ATTEMPTS DURING THE CITY BUDGET TO, UH, GET FUNDING FOR AN OUTSIDE INDEPENDENT STUDY OF C P S ENERGY'S MANAGEMENT AND, UH, YOU KNOW, DO AN AUDIT OF C P S ENERGY. AND, UH, AT THAT TIME, YOU KNOW, HE TALKED ABOUT HOW I DIDN'T HAVE ANY COUNCIL SUPPORT. UM, AND, YOU KNOW, I KEPT TALKING ABOUT IT. AND, YOU KNOW, WHEN I CAME HERE, I REMEMBER BEING TOLD, WELL, DON'T FILE ANY AMENDMENTS. RIGHT? BEFORE WE VOTED ON OUR FISCAL YEAR BUDGET, I WAS TOLD, DON'T FILE ANY AMENDMENTS 'CAUSE THERE'S NO EXTRA MONEY. AND OF COURSE, I WAS UPSET BY THAT. AND I SAID, YOU KNOW WHAT? I'M FILING THESE AMENDMENTS ANYWAY. AND PART OF IT IS LETTING THE COMMUNITY KNOW WHERE I STAND ON THESE ISSUES. AND ANOTHER PART OF IT WAS STARTING THE CONVERSATION AND I STARTED THAT CONVERSATION. AND SOMETIMES UP HERE, I, I CAN FEEL A LITTLE BIT LIKE A BROKEN RECORD, BUT WE HAVE MOMENTUM NOW, AND I'M REALLY GLAD TO HEAR FROM SO MANY OF MY COLLEAGUES THAT THEY'RE CALLING FOR, UH, OUTSIDE STUDIES AND, UH, AUDITS. UM, AND I APPRECIATE THE CITY ATTORNEY'S COMMENTS THAT, UH, YOU KNOW, WE CAN'T JUST GET A COMMITMENT FROM THE INTERIM C E O. RIGHT? AND, AND I WAS THINKING ABOUT THAT EARLIER AND THAT'S WHY OVER THE HOLIDAYS, I TOLD MY STAFF DON'T SCHEDULE ANY NEW MEETINGS FOR ME BETWEEN NOW AND THE VOTE ON C P SS ENERGY. AND I MADE A POINT OF REACHING OUT AND MEETING WITH EVERY SINGLE BOARD MEMBER, NOT JUST THE EXISTING BOARD MEMBERS. I ALSO, I MET WITH ED KELLY, THE OUTGOING BOARD MEMBER. HE ONLY HAS ONE MEETING LEFT. I MET WITH FRAN, DR. FRANCINE ROMERO, YOU KNOW, THE INCOMING BOARD MEMBER WHO'S GONNA BE SWORN IN IN FEBRUARY. I EVEN MET WITH A BOARD MEMBER WHO TERM LIMITED OUT YEARS AGO AND KNOWS A LOT OF THE HISTORY OF [03:25:01] C P S ENERGY. AND I DIDN'T JUST GO ASK, SHOULD I RE, SHOULD I, UH, SUPPORT THIS RATE INCREASE? I DIDN'T GO ASK THEM, WHAT DO YOU THINK OF THE RATE INCREASE? I MET WITH THEM AND TALKED ABOUT MY CONCERNS FOR C P SS ENERGY AND HOW THAT AFFECTS OUR CITY. UM, I ASKED, HOW DO WE STABILIZE THIS ORGANIZATION, RIGHT? UM, AND ONCE WE STABILIZE THEM, WHAT CAN WE DO TO ENSURE THAT WE'RE GONNA HAVE THE BEST UTILITY IN THE UNITED STATES? AND THAT'S REALLY WHAT I'VE BEEN FOCUSED ON. AND HOW CAN WE DELIVER AFFORDABLE RATES? HOW CAN WE MAKE SURE THAT WE KEEP THE LIGHTS ON? HOW CAN WE LEAD ON SUSTAINABILITY? SO WHEN I'VE CALLED FOR AN OUTSIDE EXPERT STUDY, IT'S NOT JUST ABOUT A FINANCIAL AUDIT. IT'S NOT, UM, IT'S NOT JUST LOOKING AT, UM, YOU KNOW, BUSTING PEOPLE FOR EMBEZZLING FUNDS OR FOR $700, YOU KNOW, MISUSING ACCOUNTS AND, AND TAKING $700, UH, CHAUFFEUR, LUXURY CHAUFFEUR RIDES TO THE AIRPORT. BUT THIS IS ABOUT A ROADMAP TO SUCCESS SO THAT IF RUDY ENDS UP BEING SELECTED AS THE C E O OR ANYBODY ELSE, I WANT THEM TO BE HANDED A ROADMAP TO SUCCESS. RIGHT? AND HERE'S A GUIDE AND, UH, YOU KNOW, TRUSTEE GONZALEZ, I'M GLAD HAS ALREADY BROUGHT THIS UP IN THEIR BOARD MEETING EARLIER THIS WEEK, AND, YOU KNOW, TALKED ABOUT A STRATEGIC PLAN. LET'S GET A, LET'S GET A SHORT TERM STRATEGIC PLAN. SO, YOU KNOW, LET'S LOOK AT OPERATIONAL EFFICIENCY AND COST SAVING MEASURES. AND, YOU KNOW, I THINK WHEN I, WHEN I TALK ABOUT OPERATIONAL EFFICIENCY, I THINK ABOUT HOW SOMETIMES I WOULD LOOK, YOU KNOW, UH, AT SOME GOVERNMENT ENTITIES AND THEIR FLEETS OF VEHICLES, AND WE LOOKED AT, WELL, WHEN YOU RETIRE SOME OF THESE VEHICLES, WHEN IS THERE AN OPPORTUNITY TO REPLACE IT WITH AN ELECTRIC VEHICLE? AND, AND I REMEMBER WITH ONE GOVERNMENT, WE LOOKED AND WE SAW ONE DEPARTMENT HAD A BOX TRUCK, AND THEY MIGHT'VE USED IT TWO DAYS A WEEK. AND THEN THERE WAS ANOTHER DEPARTMENT THAT HAD A BOX TRUCK, AND THEY MIGHT USE IT THREE DAYS A WEEK, AND ANOTHER DEPARTMENT THAT MIGHT HAVE A BOX TRUCK AND USE IT FOUR DAYS A WEEK. I SAID, WHY DON'T YOU GUYS HAVE ONE BOX TRUCK TO SHARE BETWEEN ALL THOSE DEPARTMENTS? YOU KNOW, AND LET, LET'S IMPROVE YOUR, YOUR, YOUR, YOUR COORDINATION BETWEEN DEPARTMENTS. AND SO THERE'S OPPORTUNITY, THERE COULD BE OPPORTUNITIES THERE. AND I'M NOT SAYING THAT C P S ENERGY HASN'T LOOKED AT HOW THEY CAN IMPROVE OPERATIONAL EFFICIENCY AND COST SAVINGS, BUT I'M SAYING IT'S GOOD TO HAVE AN OUTSIDE EXPERT PUT A FRESH SET OF EYES ON THERE. AND IT'S ALSO IMPORTANT FOR OUR, OUR CONSTITUENTS, OUR CITY, THE, THE RATE PAYERS TO BE ABLE TO HAVE THAT EXTRA LEVEL OF ASSURANCE. UH, I'M INTERESTED IN, IN A STUDY THAT LOOKS AT THE CORPORATE CULTURE. YOU KNOW, WE NEED TO MAKE SURE WE, WE'VE LOST SO MANY EMPLOYEES AT C P SS ENERGY RECENTLY, AND I READ IN THE SAN ANTONIO REPORT THAT, THAT, UH, HALF THE EMPLOYEES ARE ELIGIBLE FOR RETIREMENT IN THE NEXT FIVE YEARS. AND I'M REALLY ALARMED BY THAT. SO HOW ARE WE GONNA RETAIN TALENT? HOW ARE WE GOING TO BRING IN NEW TALENT? AND SO WHAT ARE SOME STEPS THAT C P S ENERGY HAS TO TAKE TO ENSURE THAT THEY'RE PROVIDING A SAFE AND POSITIVE WORK ENVIRONMENT FOR THEIR EMPLOYEES? RIGHT? AND THEN LET'S GO ABOVE AND BEYOND THAT, RIGHT? BECAUSE THE, THE ELECTRIC UTILITY BUSINESS MODEL IS RAPIDLY EVOLVING. THERE'S SO MUCH NEW TECHNOLOGY THAT'S COMING OUT. AND SO HOW DO WE CREATE A CULTURE THAT THAT SUPPORTS INNOVATION THAT'S QUICK TO ADAPT? SO WE CAN STAY AT THE FOREFRONT OF THAT, OF, OF THAT EVOLUTION, RIGHT? BECAUSE THAT'S GONNA HAVE THAT, THAT'S GONNA MATTER WHEN IT COMES TO BEING EFFICIENT AND BEING ABLE TO DELIVER AFFORDABLE RATES AND BE A SUSTAINABLE UTILITY. SO I'M REALLY GLAD TO SAY THAT WHEN I MET WITH ALL THESE BOARD MEMBERS, THERE'S STRONG ALIGNMENT IN DOING THESE OUTSIDE INDEPENDENT STUDIES. AND, AND MAYBE IT'S ONE STUDY AND MAYBE IT'S MULTIPLE STUDIES, RIGHT? BETWEEN DIFFERENT EXPERTS, RIGHT? UM, AND, AND RUDY, I I'M, UH, I'M GONNA SPRING SOMETHING ON YOU. I DIDN'T MEAN TO, I KNOW WE'VE HAD SEVERAL CONVERSATIONS, AND I HAVEN'T JUST TALKED WITH THE BOARD MEMBERS, BUT, UH, I MISSED THIS WHEN WE TALKED AND, AND I NEED A COMMITMENT FROM YOU. AND THIS IS WHEN YOU PUT OUT, BECAUSE RUDY'S NOT GOING TO, RUDY MAY NOT, MAY OR MAY NOT BE THE C E O WHEN IT COMES TIME FOR US TO LOOK AT THE, THESE, THE RESULTS OF THESE STUDIES AND TO IMPLEMENT THAT ROADMAP TO SUCCESS, RIGHT? BUT HE WILL VERY LIKELY BE THERE WHEN THE R F P IS PUT OUT FOR THEM. AND SO THIS IS THE COMMITMENT I NEED FROM YOU, RUDY. APPLICANTS SHOULD DESCRIBE IF SOMEBODY'S APPLYING TO GET FOR ONE OF THESE RFPS. FOR A, FOR A STUDY, APPLICANTS SHOULD DESCRIBE HOW THEY WILL ENSURE INDEPENDENCE FROM ANY INFLUENCE BY C P S ENERGY STAFF IN DETERMINING THE FINAL RESULTS AND RECOMMENDATIONS OF THIS COMPREHENSIVE STUDY. SO, [03:30:01] COUNCILMAN, UH, ALL OF THAT SOUNDED, YOU KNOW, REASONABLE TO ME. UH, YOU KNOW, I, IF YOU COULD SEND ME THOSE THOUGHTS, THAT WOULD BE HELPFUL. I WILL. UH, I, I WOULD, IF YOU'LL INDULGE ME, I'D LOVE TO HAVE, UH, COUNT, UH, UH, MY TRUSTEE, VICE CHAIR GONZALEZ TALK. 'CAUSE SHE'S GONNA LEAD THAT WORK ON BEHALF OF THE BOARD. PERFECT. AND YOU KNOW, I MEAN, ULTIMATELY THIS IS UP TO THE BOARD MEMBERS. RUDY, YOU DON'T WORK DIRECTLY FOR ME, BUT, BUT THIS IS SOMETHING THAT'S REALLY IMPORTANT IS, IS I WANT TO ENSURE INDEPENDENCE SO THAT WHEN SOMEBODY, WHEN AN OUTSIDE EXPERT IS HIRED TO DO THIS STUDY, THAT C P S ENERGY STAFF IS NOT ABLE TO INFLUENCE THE FINAL OUTCOME OF WHAT THEY PRESENT. UH, I THINK LIKE WITH ANY STUDY, AND THEN AGAIN, I, I HAVEN'T READ THE REQUIREMENTS OR THE REQUEST FOR PROPOSAL. TYPICALLY THERE'S REQUIREMENTS THAT ARE WRITTEN. I THINK THOSE REQUIREMENTS SHOULD BE WRITTEN IN GOOD FAITH WITH FEEDBACK FROM EACH AND EVERY ONE OF YOU. UH, ONCE THOSE REQUIREMENTS ARE WRITTEN, OBVIOUSLY WE WILL ISSUE AN R F P. YOU GET FEEDBACK. AND SO ONE OF THOSE REQUIREMENTS WOULD BE SOME INDEPENDENCE OF, AGAIN, THE FEEDBACK THAT WE RECEIVE, HOW IT'S ANALYZED, RIGHT? AND THEN HOW IT WOULD BE PRESENTED TO YOU THROUGH SEVERAL MEETINGS, WHETHER IT'S TOWN HALL MEETINGS, WHETHER IT'S GONNA BE A COMBINATION OF PRESENTING TO THE M U C, PRESENTING TO CITY COUNCIL. I MEAN, THOSE ARE MECHANISMS OF ENSURING THAT THE FEEDBACK THAT WE RECEIVE THROUGH THE PROCESS GETS PRESENTED AND THEN GETS IN INCORPORATED. NOW ALL OF US WANNA SEE SOMETHING FASTER. KEEP IN MIND IF WE WANNA GO THROUGH THAT KIND OF PROCESS, THAT WILL ALSO, YOU KNOW, DELAY IMPLEMENTATION. AND SO I THINK, AGAIN, WE WILL WORK WITH YOU TO PRESENT A DRAFT AS WHAT THAT R F P WOULD LOOK LIKE TO SEE IF THAT MEETS THE MANDATES AND HOW WE WOULD BE GOOD STEWARDS OF THE FEEDBACK THAT WE WOULD RECEIVE AND BE INDEPENDENT AND HOW THAT WOULD BE EITHER RECEIVED OR IMPLEMENTED AT C P S ENERGY. I HOPE THAT ANSWERS YOUR QUESTION. THANK YOU, TRUSTEE GONZALES. I'M GONNA CHIME IN FOR MORE. THANK YOU. COUNCIL MEMBER. BRAVO. ALRIGHT, UH, EVERYONE, UH, HAS SPOKEN ONCE, I BELIEVE. SO WE'RE GONNA GO TO A SECOND ROUND OF COMMENT NOW. SO WE'LL START WITH COUNCIL MEMBER ROCHA GARCIA. THANK YOU, MAYOR. THANK YOU. AND RUDY, I'LL FINISH OFF MY QUESTIONS FOR YOU. AND, UM, BUT TO COUNCILMAN BRAVO'S POINT, HE WAS TALKING ABOUT THE R F P AND, UM, UH, THANK YOU TRUSTEE GONZALEZ FOR COMMITTING TO WORK WITH INPUT FROM EACH ONE OF US. I THINK THIS IS A PERFECT OPPORTUNITY FOR PERHAPS OUR UTILITIES COMMITTEE TO WORK WITH OUR COUNCIL COLLEAGUES AND SEE WHAT WE WOULD LIKE TO SEE ON THAT R F P. SO I, I KNOW COUNCILMAN ENCOURAGER THE CHAIR, BUT I, THAT WOULD PROBABLY BE MY RECOMMENDATION, BUT THANK YOU. THANK YOU FOR THAT. UM, UH, RUDY, MY QUESTION IS, DO YOU HAVE A RISK ASSESSMENT TEAM AND WHAT THINGS ARE THEY CURRENTLY WORKING ON? UH, COUNCILWOMAN, WE'VE GOT, UH, ABOUT AS ROBUST OR RISK, YOU KNOW, MITIGATION, UH, PLANNING PROCESSES I'VE EVER SEEN IN THE UTILITY INDUSTRY. UH, YOU KNOW, WE'VE GOT A WHOLE TEAM ACTUALLY UNDER CORA KAZINSKI, UH, WHO, YOU KNOW, MARRIES, YOU KNOW, EVERY TIME WE HAVE A A, UH, BOARD COMMITTEE MEETING, FOR INSTANCE, THERE'S AN ALIGNED RISK, UH, SUBCOMMITTEE MEETING THAT GOES ALONG WITH THAT, UH, BOARD COMMITTEE MEETING TO TALK ABOUT THE RISK ASSOCIATED WITH OPERATIONS AND AUDIT AND FINANCES AND ALL THE THINGS THAT, UH, CYBER, YOU KNOW, CYBERSECURITY, THINGS OF THAT NATURE. SO, UH, WE HAVE GOT A, A GREAT, UH, UH, RISK, UH, MANAGEMENT TEAM. AND, UH, ALMOST LIKE WE DID COUNCILMAN HARVARD ASKED ABOUT, UH, OUR AUDITING PROCESSES, UH, ALLOW US TO PUT TOGETHER A MAYBE A, A JUST A QUICK SUMMARY, UH, THAT WE'LL SEND TO ALL THE COUNCIL MEMBERS TO, TO KIND OF EXPLAIN HOW WE DO RISK MITIGATION AT C P S ENERGY. JUST TO GIVE YOU AN EXAMPLE THAT THAT IS ACTUALLY PRESENTED TO THE BOARD OF DIRECTORS. AND SO WHEN I BECAME A BOARD OF DIRECTOR, I'LL GIVE YOU AN EXAMPLE. CYBERSECURITY WAS PROBABLY 20TH. AND SO ONE OF MY RECOMMENDATIONS WAS THAT I BECOME ONE OF THE TOP FIVE. AND SO I WILL TELL YOU THAT IT IS SOMETHING THAT'S PRESENTED TO US, AND WE'RE CONSTANTLY LOOKING AND EVALUATING AND THEN ASKING THE ORGANIZATION AT C P S TO RECONSIDER RANKING OF RISK. NOW, I WILL TELL YOU THAT IN IN RISK MANAGEMENT, WE ALWAYS HAVE CONCERN FOR THINGS THAT WE NOT, WE CANNOT CONTROL. AND I WILL TELL YOU, AND THE WEATHER WAS NOT ONE OF THOSE THINGS THAT WAS TOP OF LIST. AND SO THAT GOES TO SHOW YOU THAT THIS PROCESS IS A AGILE, AND RISK ASSESSMENTS IS SOMETHING THAT, YOU KNOW, WE HAVE TO TAKE A LOT OF FACTORS INTO CONSIDERATION, BUT THE BOARD IS PRESENTED WITH THAT DATA. GREAT. THANK YOU. AND SO, UM, I, I'VE, I FIGURED YOU ALL HAD SOME, UH, I GUESS PROCESS, RIGHT? FOR, FOR MEASURING RISK. AND SO THANK YOU FOR HELPING US FROM, FROM THE OUTSIDE LOOKING IN. I DON'T KNOW, RIGHT? SO UNTIL I ASK, I CAN ASSUME, UM, AND SOMETIMES I INCORRECTLY MAKE US MADE, MADE ASSUMPTIONS, RIGHT? THAT THINGS ARE HAPPENING. SO I WANTED TO MAKE SURE THAT I ASKED PUBLICLY ABOUT THAT. AND THEN RUDY, UM, I KNOW ONE OF MY COLLEAGUES BROUGHT IT UP, UM, ALREADY, UH, BUT, UH, WELL, UH, ACTUALLY LET ME GO TO THE OTHER END. THE, SOMEBODY, UH, EARLIER TODAY WE HAD A MENTION FROM PUBLIC COMMENT. UM, THEY, UH, TALKED ABOUT A RESIDENTIAL [03:35:01] RESCUE PLAN IDEA. AND SO HAS THAT BEEN SOMETHING, I'M SORRY, MA'AM. A RESIDENT RESIDENTIAL RESCUE PLAN. RESIDENTIAL RESCUE PLAN? THAT'S EXACTLY WHAT THEY SAID. OKAY. SO I'M JUST QUOTING, UH, I'M, I'M JUST WONDERING IF THAT'S SOMETHING Y'ALL ARE WORKING ON, OR HAS THAT BEEN AN IDEA THAT WAS PITCHED? IS IS THERE SOMETHING THAT I'VE MISSED ON THAT? BECAUSE I'D LOVE TO LEARN MORE ABOUT THAT. YEAH. OKAY. OKAY. WELL THEN I, I WILL, UH, FOLLOW UP WITH THAT SPEAKER, UM, THAT MENTIONED THAT, 'CAUSE I'M, I'M REALLY INTERESTED IN THAT. AND IT SOUNDS LIKE, UM, ONE OF THE POLICY RECOMMENDATIONS THAT I WAS MENTIONING FROM THE TEXAS TECH FELLOW, THAT WAS ONE OF THE THINGS. I MEAN, NOT IN THAT EXACT, WELL, I I WILL SAY THIS, AS PART OF THE COMMUNICATION WORK WE'VE DONE, UH, AS A RESULT OF THE CP WORK, WE DO HAVE A LOT OF, UH, JUST HELPFUL HINT IDEAS ABOUT RESIDENTS PUTTING TOGETHER THEIR OWN EMERGENCY PREPAREDNESS PLAN. UM, SO I DO THINK THAT THERE'S SOME OVERLAP IN THE WORK WE'VE DONE THERE TO COMMUNICATE, HEY, IN ADVANCE OF A STORM, HERE ARE THE 10 THINGS THAT YOU, YOU KNOW, DO YOU HAVE BATTERIES? IF YOU CHARGE YOUR CELL PHONE, IS YOUR CAR FULL OF GAS? YOU KNOW, THERE ARE A NUMBER OF THINGS THAT FOLKS SHOULD DO TO BE, YOU KNOW, PREPARED IN THE EVENT OF A MAJOR EVENT. SO, SO MAYBE THERE'S SOME OVERLAP THERE THAT WE CAN WORK WITH YOU ON. THANK YOU, RUDY. YES, MA'AM. AND THEN THE, UM, MY FINAL QUESTION, AND, AND ONE OF MY COLLEAGUES HAD BROUGHT IT UP, BUT THE DIFFERENCE BETWEEN WHY AUSTIN MADE MONEY AND WHY SAN ANTONIO LOST MONEY DURING WINTER STORM URI, JUST SO THAT I COULD GET IT CORRECT, IS BECAUSE OF THE GAS COMPONENT, THE PRIMARY DIFFERENCE, THEIR GAS COMPANY ALSO HAD A BILLION DOLLAR PRICE TAG. YOU KNOW, NOW THE AUSTIN DOES, THE CITY OF AUSTIN DOESN'T OWN TEXAS GAS SERVICE. THAT'S A PRIVATE SECTOR UTILITY, BUT THEY ARE PASSING ON A PRETTY GOOD SIZABLE GAS BILL TO THEIR CUSTOMERS AS WELL. SO IT'S, IT'S THE FACT THAT YOU OWN THE GAS COMPANY THAT YOU'RE, YOU KNOW, PIPING, YOU KNOW, GAS, YOU KNOW, DURING THOSE REALLY HIGH, UH, YOU KNOW, PRICE EVENTS THAT REALLY DROVE, YOU KNOW, WHAT, WHAT THE BIGGEST DIFFERENCE BETWEEN AUSTIN ENERGY AND C P S ENERGY WAS. OKAY, GREAT. THANK YOU, RUDY. THOSE ARE ALL MY QUESTIONS. THANK YOU, MAYOR. THANK YOU. COUNCIL MEMBER ROJA GARCIA, COUNCIL MEMBER PERRY. THANK YOU, SIR. UM, JUST CONTINUING ON THAT LINE OF QUESTIONING ABOUT THE $418 MILLION. SO WE'VE, WE'VE SETTLED THAT WITH CASH AND SHORT TERM DEBT WITH THE CURRENT RATE STRUCTURE WHERE WE ARE NOW, ARE YOU SAYING YOU CANNOT AFFORD THAT TO GET THAT BILL PAID? UH, FOR THE SHORT TERM DEBT? THAT'S, SIR, THAT'S A, THAT'S A PASS THROUGH. ALL OUR FUEL GOES DIRECTLY TO CUSTOMERS. OKAY. SO, BUT ARE WITH THE CURRENT RATE, YOU'RE SAYING YOU CAN'T AFFORD THAT? WELL, THE CUSTOMERS CAN'T AFFORD IT. NOT THAT WE CAN'T AFFORD IT, CUSTOMERS HAVE TO PAY IT EITHER OVER A SHORT-TERM BASIS OR OVER A LONG-TERM BASIS. THAT'S NOT OKAY. WHAT'S SHORT COST THAT GOES TO WHAT'S A SHORT TERM BASIS? BASE RATE, WHAT'S A SHORT-TERM BASIS ON A SHORT-TERM BASIS MEANS OVER THE NEXT 12 MONTHS, THEY SEE THOUSAND DOLLARS A MONTH BILLS. OKAY. THAT'S WHAT THE SHORT TERM BASIS MEANS. ALL RIGHT. ALL RIGHT. OKAY. UM, GOT MY QUESTIONS ANSWERED ON THAT. I, I, I WANT TO HIGHLIGHT A COUPLE OF THANK YOU, RUDY. UM, FIRST OF ALL, YEAH, THANKS TO ALL THE COOPERATION FOR DIS DISTRICT 10, AS WELL AS OUR ALMOST AN HOUR FIRESIDE CHAT. UM, ONT V S A, I THINK THAT WAS VERY HELPFUL. I'VE GOT A LOT OF COMMENTS FROM THAT. UM, A LOT OF COMMENTS FROM ACROSS THE CITY, NOT JUST IN DISTRICT 10. AND, UM, OKAY. I, I MIGHT HAVE RECEIVED A COUPLE OF SAYING, YES, WE UNDERSTAND, WE SUPPORT THE RATE INCREASE. EVERYBODY ELSE WAS VERY UNHAPPY WITH C P S A LACK OF TRUST, AND NOBODY WANTS TO SEE THIS RATE INCREASE AT THIS POINT IN TIME. LIKE I SAID, THEY, THEY WERE ALWAYS GOING BACK TO ALL THE EVENTS THAT ARE HAPPENING RIGHT NOW AND HAS HAPPENED OVER THE LAST 18 MONTHS, UM, IN TRYING TO SUPPORT THIS PARTICULAR RATE INCREASE, I WANTED TO TALK A LITTLE BIT ABOUT THE BUSINESS COMMUNITY ALSO. WE, WE GOT SOME LETTERS HERE FROM DIFFERENT CHAMBERS ACROSS THE CITY, AND WE GOT A CONSOLIDATED LETTER FROM THE CHAMBERS. AND I HAVE ALWAYS BEEN A BIG SUPPORTER OF OUR BUSINESS COMMUNITY HERE IN SAN ANTONIO, PROBABLY ONE OF THE BIGGEST UP HERE ON THE, ON THE COUNCIL. AND, UH, UH, I, I TAKE A LOOK AT THAT AND I TAKE THAT TO HEART AS WELL ON WHAT THEY'RE SAYING THAT THEY WANT TO SEE ON THIS RATE INCREASE. I GOT A LITTLE BIT DIFFERENT TWIST ON THAT, AND I TOTALLY UNDERSTAND WHERE THEY'RE COMING FROM, BUT THERE'S A BIG DIFFERENCE. UH, THE COMMERCIAL RATES RIGHT NOW ARE ABOUT TWICE THE AMOUNT OF RESIDENTIAL RIGHT RATES, AS I UNDERSTAND IT, ABOUT TWICE THE AMOUNT. SO THEY'RE PAYING A PRETTY HEFT, HEFTY PRICE OUT THERE, UH, FOR ELECTRICITY. BUT ON A RATE INCREASE, UH, AS A BUSINESS OWNER, YOU DON'T, YOU DON'T SUSTAIN THAT RATE INCREASE INTERNALLY. IN OTHER WORDS, YOU DON'T TAKE IT OUTTA YOUR PROFITS, YOU DON'T TAKE IT OUTTA YOUR PAY, YOU DON'T TAKE IT OUT OF YOUR CURRENT OPERATIONS. WHAT DO [03:40:01] YOU DO WITH THAT INCREASE? IT GOES ON TO THE CUSTOMER. AND HERE I'M TALKING ABOUT THE FOLKS THAT CAN'T AFFORD THIS RATE INCREASE. THEY'RE GETTING A DOUBLE WHAMMY. NOT ONLY ARE WE TALKING ABOUT A RATE INCREASE HERE, BUT WE'RE TALKING ABOUT INCREASES ACROSS SAN ANTONIO BY OUR COMMERCIAL AND SMALL BUSINESSES THAT ARE HAVING TO FORK IN MORE MONEY. SO YOU'RE TALKING ABOUT A DOUBLE WHAMMY TO FOLKS THAT ARE LIVING HERE IN SAN ANTONIO. AND AGAIN, WHO BEARS THE COST OF ALL OF THIS. IT'S OUR RESIDENTS, OUR NEIGHBORS, OUR HOMEOWNERS OUT THERE, THEY'RE THAT ARE BEARING THE COST OF ALL OF THIS. AND IT'S NOT JUST THIS SIMPLE 3.85%, IT'S GONNA BE A COMPOUNDING EFFECT THROUGHOUT OUR ECONOMY HERE. UH, AND PEOPLE ARE GONNA SEE IT GOING INTO STORES, SHOPS, UM, YOU KNOW, SMALL BUSINESSES OUT ACROSS THE COMMUNITY. SO I JUST WANTED TO CLEAR THAT UP, THAT IT'S NOT JUST AS SIMPLE, OH, IT'S JUST A FEW DOLLARS A MONTH, UH, THAT IS GONNA BE COMPOUNDED ACROSS THE CITY FOR THOSE THAT ARE LESS LIKELY TO BE ABLE TO AFFORD THOSE COSTS. SO, UM, I, I'M, I'M STRUGGLING WITH THIS. I'M STRUGGLING WITH THIS, UH, UH, SYSTEM TO PAY OFF THIS, UH, FUEL CHARGE OVER TIME. I'M STRUGGLING WITH THIS RATE INCREASE. UM, YOU KNOW, I KEEP SAYING C P S NEEDS TO BE RUN LIKE A BUSINESS, AND THERE'S BUSINESSES OUT THERE THAT ARE RAISING THEIR RATES. BUT AGAIN, I CAN'T SEE THIS RIGHT NOW AT THIS POINT IN TIME. DOES THAT MEAN I'M SAYING I'M SUPPORTING THIS RATE INCREASE? I, I HAVEN'T, I STILL HAVEN'T GOTTEN ALL THE INFORMATION BASED ON THE QUESTIONS I'VE JUST SAID TODAY, BUT ALSO BASED ON QUESTIONS THAT I'VE HAD IN B SESSIONS AND OUR, UH, T V S A EVENT. SO I, I, I DON'T THINK THIS IS THE RIGHT TIME. I'M A PRAGMATIC, UM, I LOOK AT EVERYTHING, BUT WHEN I'M GETTING THE FEEDBACK FROM MY COMMUNITY, I'M LISTENING TO THAT AS WELL. SO WITH THAT, THANK YOU, SIR. APPRECIATE IT. THANK YOU. COUNCIL MEMBER PERRY, COUNCIL MEMBER MCKEE RODRIGUEZ. THANK YOU, MAYOR. UM, I JUST HAVE A QUICK APOLOGY TO MAKE. I KEPT CALLING YOU MR. LOPEZ AND RUDY LOPEZ. I DON'T KNOW WHO RUDY LOPEZ IS, , BUT I KNOW YOUR LAST NAME IS CARA. OH, THANK YOU. COUNCIL MEMBER MCKEE RODRIGUEZ, COUNCIL MEMBER VRAN. UH, THANK YOU. I JUST WANTED TO CHIME BACK IN BECAUSE I KNOW WE'VE ALL HEARD FROM RESIDENTS THAT, UM, ARE NOT IN FAVOR OF THIS RATE INCREASE, AND I DID WANNA ACKNOWLEDGE THEM AND KNOW THAT I'VE HEARD THEM, AND THAT'S WHY MY COMMITMENT IS TO WORK ON TRYING TO GET UTILITY ASSISTANCE TO WORK WITH C P S IF THIS PASSES TODAY THAT WE'VE GOT A TIMELINE IF YOU APPLY FOR UTILITY ASSISTANCE, WHEN, WHEN THOSE APPLICATIONS ARE GOING TO BE PROCESSED. BUT I WOULD LIKE TO ENTER INTO THE RECORD, UH, THE RESPONSES THAT I DID RECEIVE FROM RESIDENTS, UH, SOME OF THEM SAYING THEY AGREED ON SOME OF IT, THAT, THAT THERE WERE THINGS THEY WANTED TO FOCUS. SO I ENCOURAGE YOU, UM, RUDY AND, AND JANIE AND THE REST OF THE BOARD, UH, DR. MACKEY TO TAKE A LOOK AT THAT AND SEE, BECAUSE WHEN WE TALK ABOUT THE CITY OF SAN ANTONIO UTILITY, IT IS A CITIZEN OWNED UTILITY. AND RIGHT NOW WE'RE MAKING THE DECISION ABOUT WHAT IS GOING TO, UH, GET US THROUGH THIS CRISIS, WHAT IS GOING TO GET US THROUGH THE NEXT STEP. AND AGAIN, I APPLAUD BEN GELLE AND THE TEAM FOR SAYING IT'S NOT 13%, IT'S 3.85, AND IF WE DO 3.33, I COULD LOSE SIDEWALKS. SO I, I REALLY APPRECIATE THOSE EFFORTS AND, UM, I THINK WE HAVE, WE HAVE AN OPPORTUNITY TO CHANGE. WE HAVE DIALOGUE. I LOOK FORWARD TO WORKING WITH MY COUNCIL COLLEAGUES TO MAKE SURE THAT IT'S A NEW DAY. IT'S C P SS. THANK YOU. THANK YOU. COUNCIL MEMBER VIRON. COUNCIL MEMBER CASTILLO. THANK YOU, MAYOR. I JUST WANTED TO, UH, MENTION THAT BACK IN 2011 WHEN JULIAN CASTRO WAS MAYOR, UM, UH, THE FORMER C E O OF C P S, UH, DOYLE CAME BEFORE CITY COUNCIL AND TOLD THE MAYOR AND CITY COUNCIL MEMBERS THAT ALL COAL WOULD BE RETIRED BY 2018. UM, AND, AND I, I, I MENTIONED THAT TO HIGHLIGHT THAT THESE COMMITMENTS THAT WE'RE HEARING AND THAT WE'RE ASKING OF AREN'T CODIFIED. UH, A AGAIN, WE'RE WE'RE, IT'S BAD NEGOTIATION, NEGOTIATING TO GIVE C P S WHAT THEY'RE ASKING FOR FIRST WITHOUT GETTING THOSE COMMITMENTS DOCUMENTED IN WRITING, LEGALLY BINDING. UM, SO IN ADDITION TO THAT, I, I, I WANNA CONTINUE TO EMPHASIZE THAT CITY COUNCIL WE'RE THE LAST LINE OF DEFENSE FOR THE PUBLIC HERE, AND WE SHOULD SEIZE ON THIS OPPORTUNITY TO DRASTICALLY IMPROVE THE PUBLIC UTILITY OF OUR RESIDENTS WHO CONTINUE TO BE UNSATISFIED, [03:45:02] UH, WITH BEFORE HANDING THEM MORE TAXPAYER MONEY. UM, AGAIN, I WANNA CONTINUE TO EMPHASIZE THAT , WE, WE NEED TO LOOK AT THE RATE STRUCTURE. AND WHEN WE ALSO LOOK AT AUSTIN AND WHY THEY WERE MORE RESILIENT, THEY ALSO HAVE A EQUITABLE RATE STRUCTURE. UM, SO WE NEED TO HAVE A SERIOUS CONVERSATION. I'M NOT SATISFIED WITH THE COMMITMENTS THAT I'M HEARING AROUND RATE STRUCTURE BECAUSE IT'S A CONVERSATION THAT'S BEEN GOING ON FOR YEARS. COMMUNITY SCHOLARS, RESIDENTS HAVE BEEN COMING BEFORE CITY COUNCIL FOR YEARS ASKING FOR THE, UH, RATE TO BE RESTRUCTURED, AND WE HAVEN'T SEEN THAT. UM, BUT WITH I, I, I UNDERSTAND THAT THERE ARE TWO MOTIONS ON THE FLOOR BECAUSE THERE ARE TWO ITEMS ON THE FLOOR. UM, SO I WOULD LIKE TO MAKE, TO MAKE A MOTION TO ITEM SIX. UH, WITH THAT, I MOVE TO DELAY THIS ITEM UNTIL JANUARY 12TH, 2023 OR UNTIL A THIRD PARTY AUDIT OF C P S ENERGY IS COMPLETED, WHICHEVER OCCURS FIRST. OKAY? THERE WAS A MOTION, UH, MADE FOR DELAY OF ITEM SIX TO JANUARY 12TH, 2023. UH, WAS THERE A SECOND? YES. SECOND. OKAY. MOTION BY PERRY. UH, OR SECOND BY PERRY. UM, ALRIGHT, SO THAT IS NOW THE MOTION ON THE FLOOR. IS THERE A DISCUSSION? YEAH, I, UM, SO IS THERE A DISCUSSION ON THE DELAY? AND I'LL NEED TO SEE A HAND FOR THAT, SINCE I'VE ALREADY GOT A QUEUE IN THE WORK COUNCIL MEMBER. BRAVO. THRILLED TO GET SOME EXTRA AIRTIME ON THIS ISSUE. SO, ONE, THERE, THERE ARE A COUPLE OF FACTORS IN LOOKING AT A DELAY. AND, UH, ONE IS WHEN I LOOK AT, IS THE 3.85% REASONABLE? AND I LOOK AT INFLATION AND THE FACT THAT C P SS ENERGY IS NOT OPERATING IN A BUBBLE. AND SO THE LAST, THE LAST TIME THERE WAS A, A RATE ADJUSTMENT WITH C P S ENERGY WAS IN FEBRUARY, 2014. AND SINCE THEN, INFLATION HAS GONE UP 18.75%. AND I'D LEARNED THAT BY, I WENT TO THE BUREAU OF LABOR STATISTICS THAT THE US GOVERNMENT HAS, AND I LOOKED AT THEIR CONSUMER PRICE INDEX. AND SO WHAT THEY DO IS THEY TAKE WHAT'S CALLED A BASKET OF GOODS. AND SO IT'S A, A VARIETY OF ITEMS THAT THEY TRACK THE PRICES ON OVER TIME. THEY MIGHT TRACK A T THE COST OF A T-SHIRT, A GALLON OF MILK, A DOZEN EGGS, THE COST OF BREAD, MOVIE TICKET, YOU KNOW, AND, AND THEY AVERAGE THIS ALL OUT. AND THEY SAY, HOW MUCH HAS IT GONE UP? AND SINCE, SINCE THE LAST RATE ADJUSTMENT INFLATION HAS GONE UP 18.75%. AND IT, IT REMINDS ME OF WHEN I WAS A KID, AND MY PARENTS WOULD TELL ME THAT WHEN THEY WERE KIDS, THEY COULD GO TO THE GAS STATION OR, OR THE WHATEVER THE CORNER STORE WAS. AND, UH, THEY COULD BUY A HERSHEY BAR FOR 5 CENTS. THEY COULD BUY A BOTTLE OF COCA-COLA FOR 5 CENTS. AND SO HOW MUCH LONGER ARE WE GONNA MAKE C P S ENERGY OPERATE WITH PRICES OF THE PAST AND BE ABLE TO COMPETE? AND AGAIN, THEY'RE NOT IN THE BUBBLE. RIGHT? AND SO WHAT DOES THE DELAY DO? C P SS ENERGY NEEDS TO HIRE PEOPLE. THEY'RE FOUR, THEY, THEY'RE 400 STAFF SHORT RIGHT NOW. RIGHT? UM, AND WE WANT THEM, I DON'T WANT THEM TO JUST GET THE MOST AFFORDABLE EMPLOYEES. I WANT THEM TO GET THE BEST EMPLOYEES. UM, 'CAUSE WE NEED, WE NEED TO STABILIZE THIS ORGANIZATION AND START BUILDING THE BEST ORGANIZATION THAT WE CAN, RIGHT? AND YOU KNOW, I, A LOT OF TIMES WHEN, YOU KNOW, WHEN YOU TALK TO CONTRACTORS, IF YOU'RE GONNA HAVE A, SOMETHING, SOME WORK DONE ON YOUR HOUSE OR ON YOUR CAR OR WHATEVER IT IS, A LOT OF CONTRACTORS WILL TELL YOU CHEAP COSTS MORE. YOU KNOW? AND SO IF YOU DO GO WITH THE MOST AFFORDABLE, SOMETIMES YOU'RE GONNA PAY EXTRA. AND IF YOU DON'T BELIEVE ME, GO ASK THE, THE COMPANY THAT BUILT THE, UH, THE PARKING GARAGE AT THE ZOO, THEY DIDN'T WANT TO PAY MY BROTHER'S PRICES. THEY HAD TO GO BACK MULTIPLE TIMES. AND, YOU KNOW, THEY GOT THAT JOB, THEY DIDN'T GET THE JOB RIGHT THE FIRST TIME. THEY DIDN'T GET A JOB RIGHT THE SECOND TIME, THE THIRD TIME, I THINK THE FOURTH TIME THEY FINALLY HIRED MY BROTHER. UM, AND SO THAT, THAT'S, THAT IS A FACTOR THAT WE HAVE TO BE ABLE TO DEAL WITH. AND WE HAVE C P SS ENERGY HAS TO BE ABLE TO COMPETE. AND SO I LOOK AT RECENT HEADLINES. UM, U S A A JUST ANNOUNCED THAT THEIR NEW MINIMUM, MINIMUM WAGE IS $21 AN HOUR. FROST BANK MINIMUM WAGE, $20 AN HOUR VIA BEFORE THE PANDEMIC VIA WAS PAYING THEIR BUS DRIVER $17 AND 50 CENTS AN HOUR. NOW THEY'RE PAYING 'EM $21 AN HOUR. SO HOW DOES C P S ENERGY COMPETE WITH THAT? IF THERE'S AN ENERGY ANALYST AT, AT C P S ENERGY AND U S A A SAYS, HEY, YOU KNOW, WE COULD USE AN ENERGY ANALYST OVER HERE TO, OR, OR WEATHER ANALYSTS. WE WANNA SEE, YOU KNOW, WHAT'S THE WEATHER GONNA BE LIKE AND TRACK SOME STORMS. AND THEY CAN SAY, HOW MUCH ARE, HOW MUCH IS THAT ANALYST MAKING AT C P [03:50:01] S ENERGY? OH, YOU'RE ONLY MAKING THAT MUCH. WE CAN, WE CAN PAY YOU A LOT MORE THAN THAT. UH, WHAT ABOUT CUSTOMER SERVICE? YOU KNOW, C P S ENERGY WANTS TO HAVE GOOD PEOPLE IN CUSTOMER SERVICE. AND FROST BANK CAN CALL THEM THE, THEIR BEST CUSTOMER SERVICE PEOPLE UP AND SAY, HEY, YOU KNOW, WE'RE PAYING MORE OVER HERE. UM, IF SOMEBODY'S DRIVING A BUCKET TRUCK, UH, FOR C P S ENERGY AND VIA CALLS 'EM UP AND SAYS, YOU KNOW, WE'RE PAYING, WE OUR BUS DRIVERS MORE THAN THAT, WHY DON'T YOU COME WORK FOR US? AND SO THEY NEED TO, WE NEED TO BE ABLE TO KEEP THE TALENT WE HAVE AND HIRE NEW TALENT. UM, AND SO I'M LOOKING AT THE LONG VIEW, AND I DON'T THINK THIS IS SOMETHING TO DELAY WHEN I, WHEN WE NEED TO STABILIZE THIS ORGANIZATION. THANK YOU. THANK YOU. COUNCIL MEMBER BRAVO. UH, AGAIN, I'LL NEED TO SEE A HAND IF YOU'D LIKE TO SPEAK ON THE MOTION ON THE FLOOR, WHICH IS ON THE DELAY. SO I'LL GO TO COUNCIL MEMBER COURAGE. THANK YOU, MAYOR. UH, YOU KNOW, WE'RE TALKING ABOUT DELAYING, UH, A VOTE HERE. AND, AND IT, IT JUST AMAZES ME WHY WE, WE WANNA DELAY THIS BECAUSE THIS ISN'T SOMETHING THAT, THAT C P S ENERGY CREATED THIS CRISIS. LITERALLY. IT, IT WAS CREATED BY A PANDEMIC THAT CUT THEM SHORT OF INCOME OF ABOUT $150 MILLION. THAT'S A LOT OF MONEY FOR ANY BUSINESS, PARTICULARLY A MUNICIPAL ONE, TO NOT RECEIVE OVER THE LAST YEAR, YEAR AND A HALF. HOW CAN WE NOT UNDERSTAND THE CRISIS THAT THEY'RE GOING THROUGH? AND AT THE SAME TIME, THAT STORM WAS AN ACT OF NATURE. IT WASN'T C P S NOT DOING THEIR JOB. NOW, MAYBE THEY SHOULD HAVE ABSOLUTELY, THEY COULD HAVE DONE A BETTER JOB IN HANDLING IT, BUT NOW THEY'RE FACED WITH HUGE COSTS BECAUSE OF THAT STORM, NOT BECAUSE OF THEM OR THEIR STRUCTURE OR THEIR OPERATION. IT'S BECAUSE OF AN ACT OF NATURE AND AN ACT OF GREED BY HUGE COMPANIES THAT ARE TAKING BILLIONS OF DOLLARS OUT OF TEXAS AND PUTTING IT INTO HANDS OF WEALTHY COMPANIES AND OTHER PARTS OF THE COUNTRY. BUT WE, YOU AND I, AS THE TAXPAYERS, AS THE CUSTOMERS OF C P SS ENERGY ARE BOUND TO THIS. WE CAN'T GET OUT OF IT. WE CAN'T SAY, WELL, LET'S JUST PUT IT OFF ANOTHER YEAR SO THAT WE LOOK, LOOK AT OTHER WAYS OF TWEAKING IT. WE'RE STILL GOING TO BE RESPONSIBLE FOR THIS MONEY. AND AS UNFORTUNATE AS IT IS, IT WASN'T SOMETHING THAT THEY PLANNED, IT WASN'T SOMETHING THAT COULD HAVE BEEN AVOIDED. IT ISN'T SOMETHING THAT CAN BE WRITTEN OFF. IT'S SOMETHING THAT UNFORTUNATELY ALL OF US ARE, ARE REQUIRED TO DEAL WITH. YOU KNOW, I AGREE WITH A LOT OF WHAT I'VE HEARD HERE TODAY. WE NEED ACCOUNTABILITY FROM C P S TO ENSURE WHAT HAPPENED LAST FEBRUARY WILL NEVER HAPPEN AGAIN. AND WE NEED EQUITY FOR C P S CUSTOMERS WHEN IT COMES TO THE RATE STRUCTURE THAT WE HAVE IN PLACE. AND WE NEED AN AUDIT OR A CONSULTANT STUDY OF CP S'S OPERATIONS MANAGEMENT AND FINANCES. AND WE NEED A PLAN FOR OUR FUTURE ENER ENERGY NEEDS IN THIS COMMUNITY SO THAT WE CAN PROVIDE A CLEAN ENVIRONMENT AND, AND, AND AFFORDABLE ENERGY. AND WE NEED TO HAVE A STABLE, SAFE, AND RELIABLE SOURCE OF ENERGY FOR ALL OF US. NOT A YEAR FROM NOW, BUT TODAY. SO WE NEED TO PROVIDE THIS FINANCIAL SHOT IN THE ARM. SO C P SS WILL CONTINUE TO MEET OUR ENERGY EXPECTATIONS. WE CAN'T PUT THIS OFF. THANK YOU. COUNCIL MEMBER COURAGE. UH, ANYTHING FURTHER ON THE MOTION ON THE FLOOR, WHICH IS THE MOTION TO DELAY? OKAY. IF THERE AREN'T, IF THERE IS NONE, UM, I WILL GO AHEAD AND TAKE UP, UH, THE MOTION TO DELAY. UH, AGAIN, A YES VOTE IS TO DELAY ITEM SIX TO, UM, JANUARY 20, UH, JANUARY 12TH, 2023. A NO VOTE. WILL CONTINUE THE DISCUSSION ON ITEMS FIVE AND SIX. AND I'LL JUST SAY AGAIN, ON THE RECORD, I AGREE WITH MY COLLEAGUE WHO JUST SPOKE. UH, IT IS OUR FIDUCIARY OBLIGATION. IT'S NOT A COMFORTABLE VOTE. IT'S A VOTE THAT MUST BE TAKEN, AND WE MUST TAKE IT TODAY. SO I WILL NOT BE SUPPORTING THE DELAY. SO PLEASE VOTE. ALL RIGHT. MOTION FAILS. WE'LL CONTINUE WITH THE DISCUSSION ON THE BASE MOTIONS. UH, AND SO WE'LL CONTINUE WITH [03:55:01] COUNCIL MEMBER. BRAVO. YOU KNOW, IT'S LIKE THE MAYOR SAID, THIS IS NOT, IT'S NOT AN EASY VOTE. UM, WE, UH, I ALSO KEEP TOP OF MIND THE MOST VULNERABLE IN OUR COMMUNITY AND, UM, THE BIG CONVERSATIONS THAT WE'RE HAVING RIGHT NOW ABOUT AFFORDABLE HOUSING AND HOW WE'RE GONNA MAKE PROGRESS ON THAT, RIGHT? BUT YOUR ENERGY BILL IS PART OF AFFORDABLE HOUSING. IT IS, IT'S PART OF YOUR LIVING EXPENSE. IT, IT PLAYS A ROLE THERE. AND, UH, I GOT A TEXT MESSAGE FROM BETTY ECKERT IN MY DISTRICT RIGHT BEFORE WE, THIS MEETING STARTED. AND SHE TOLD ME, YOU KNOW, SHE, SHE WAS, UH, ENCOURAGING ME TO VOTE AGAINST THIS RATE INCREASE. AND SHE SAID, YOU GOTTA THINK ABOUT THE SENIORS, THE ELDERLY, THE VETERANS, THE HANDICAPPED, AND, AND I AM THINKING ABOUT THEM. UM, AND THAT IS THE PURPOSE OF, UM, GETTING A RATE STRUCTURE RECOMMENDATION QUICKLY FROM THE RATE ADVISORY COMMITTEE. SO WE CAN ADJUST HOW, YOU KNOW, SO WE CAN ADJUST THAT RATE AND MAKE SURE THAT IT'S AN EQUITABLE RATE. THAT'S ALSO WHY I MET WITH A TEAM OF C P S ENERGY EMPLOYEES RIGHT BEFORE THE, THE HOLIDAY BREAK. AND WE WORKED OUT HOW TO MATCH REAL ESTATE DATA TO ENERGY BILLS AND, AND DETERMINE HOW MUCH IS SOMEBODY PAYING PER SQUARE FOOT ON, UH, FOR THEIR HOUSE, RIGHT? AND THEN WE CAN LOOK AT LOW INCOME ZIP CODES AND FIND OUT WHO ARE THE OUTLIERS, WHO'S USING A LOT MORE ENERGY PER SQUARE FOOT FOR THE SIZE OF THEIR HOUSE, WHO'S USING MORE ENERGY. AND THEN WE'RE GONNA TARGET THOSE PEOPLE AND GO AND REACH, DO SOME PROACTIVE OUTREACH AND OFFER THEM FREE ENERGY AUDITS AND, AND OFFER THEM, UH, YOU KNOW, WEATHERIZATION PACKAGES AND, UH, ENERGY RETROFITS TO BE ABLE TO REDUCE THEIR ENERGY BURDEN. UM, 'CAUSE WE'RE ALL CHALLENGED RIGHT NOW. IT'S, IT'S . IT'S A CHALLENGING TIME WITHOUT A DOUBT TO BE INCREASING RATES. BUT WE ALSO, WE CAN'T, YOU KNOW, HOLD C P S ENERGY BACK WHEN, WHEN THE PRICES OF EVERYTHING ELSE IS GOING UP. WE CAN SAY, WELL, YOU KNOW, THE PRICE OF EVERYTHING ELSE IS GOING UP. BUT C P S ENERGY, YOU CAN'T, YOU CAN'T MOVE WITH, WITH THE GR THE GREATER ECONOMICS THAT WE DON'T HAVE COMPLETE CONTROL OVER. UM, AND I'M, I'M LOOKING AT THE LONG VIEW BECAUSE THIS ISN'T JUST ONE RATE INCREASE THAT WE'RE TALKING ABOUT. IT'S ONE THAT WE'RE VOTING ON, BUT THERE'S THREE THAT WE'RE CONSIDERING. AND SO I LOOK AT THIS AND I SAY, I'M CONCERNED ABOUT C P SS ENERGY COMING BACK IN TWO YEARS, AND THEN IN FOUR YEARS WITH FIVE AND A HALF PERCENT INCREASES BACK TO BACK RIGHT AFTER THIS. AND IF WE DON'T APPROVE THIS RATE INCREASE, HOW DO WE STABILIZE THE ORGANIZATION? HOW DO WE FIND MORE COST SAVINGS? HOW DO WE, UM, MAKE SURE THAT WE GET EMPLOYEE COMPENSATION RIGHT? HOW DO WE, UM, YOU KNOW, HOW DO WE FIND OPERATIONAL EFFICIENCIES TO REDUCE FUTURE RATE INCREASES? YOU KNOW, UH, IT'S NOT JUST ONE. WE NEED TO THINK OF THE, ABOUT THE LONG GAME THERE. UM, I WANNA ADDRESS CREDIT RATING AGENCIES. IF YOU'RE A CREDIT RATING AGENCY AND YOU'RE LISTENING RIGHT NOW, I, YOU KNOW, I'M, I'M GLAD YOU'RE LISTENING IN AND, UM, YOU KNOW, I INVITE YOU TO, TO WATCH, UH, WHAT KIND OF STUDIES WE PUT OUT AND, UH, LOOK AT THE RECOMMENDATIONS AND HOW, HOW, UH, QUICKLY C P S ENERGY IMPLEMENTS THEM. BECAUSE I THINK THAT'S GONNA GIVE INSTILLED TRUST IN THOSE CREDIT RATING AGENCIES TO KEEP OUR INTEREST RATES LOW. AND SO SOME PEOPLE CAN SAY, WELL, WHY DO YOU CARE MORE, UH, ABOUT BOND HOLDERS? WHY DO YOU CARE MORE ABOUT FAT CATS ON WALL STREET THAN THE RATE PAYERS? AND I DON'T, I DON'T CARE ABOUT THE WALL STREET FAT CATS. I CARE ABOUT OUR RATE PAYERS. BUT THE TRUTH IS, BECAUSE WE OWN C P SS ENERGY, YOU KNOW, ANY DEBT TO, UM, TO, TO THE BOND HOLDERS IS DEBT THAT THE C P SS RATE, RATE PAYERS ARE GONNA HAVE TO COVER. AND IF THOSE INTEREST RATES GO UP BY 1%, WE HAVE $6 BILLION IN DEBT. SO ONE, A 1% INCREASE IN THAT INTEREST RATE MEANS THAT WE'RE GONNA HAVE TO PAY AN C P S ENERGY WILL HAVE TO PAY AN ADDITIONAL $60 MILLION A YEAR IN INTEREST THAT YOU GET NO ADDED VALUE FOR NONE WHATSOEVER. AND SO THAT, SO I'M, I'M, IT'S COMING FULL CIRCLE AND I'M THINKING ABOUT THE RATE PAYERS THERE AND HOW WE DELIVER VALUE TO OUR CONS TO OUR COMMUNITY. UM, SO FOR ME, YOU KNOW, WE'VE GOT NEW LEADERSHIP AT C P S ENERGY AND, AND SO PUNISHING NEW LEADERSHIP FOR THINGS THAT OLD LEADERSHIP DID, I DON'T, [04:00:01] I DON'T THINK WE, THERE'S ANYTHING TO GAIN OUTTA THAT. WHERE, AND THIS IS, I DON'T SEE THIS AS REWARDING BAD BEHAVIOR. I SEE THIS AS POSITIONING NEW LEADERSHIP WHO HAS MADE COMMITMENTS TO WORK WITH US AND BE MORE ACCOUNTABLE, POSITIONING THEM TO STABILIZE THIS ORGANIZATION, START TO BUILD THE BEST UTILITY THAT WE CAN POSSIBLY HAVE. UM, IN ADDITION, YOU KNOW, NOT A LOT OF PEOPLE THINK ABOUT THIS, BUT ELECTRIC UTILITIES ARE NATIONAL SECURITY INFRASTRUCTURE. AND, YOU KNOW, LAST NIGHT IN OUR TOWN HALL THAT WE HAD, YOU KNOW, UH, YOU ALL MENTIONED THAT IT'S 20, THE, THE SOFTWARE'S 22 YEARS OLD. IT'S WINDOWS 2000. YOU CAN'T GO TO BEST BUY AND PURCHASE NORTON ANTIVIRUS SOFTWARE TO, TO COVER WHAT WE NEED FOR THIS, THE KIND OF NATIONAL SECURITY INFRASTRUCTURE. I KNOW I'M OUTTA TIME, UM, BUT I WANT TO END ON A POSITIVE NOTE AND SAY, I FEEL LIKE YOU'VE TURNED OVER A NEW LEAF. I I APPRECIATE THE RELATIONSHIPS THAT I'VE BEEN BUILDING WITH THE BOARD MEMBERS, AND I LOOK FORWARD TO WORKING WITH YOU ALL SO THAT WAY WE, WE CAN BUILD THE, HONESTLY, THE BEST UTILITY IN THE NATION. THAT'S WHAT I'VE BEEN FOCUSED ON. THANK YOU. COUNCIL MEMBER, MEMBER BRAVO, UH, COUNCIL MEMBER ELAS. YEAH, RUDY, AS, AS, UM, AS I PREDICTED, YOU'RE, YOU KNOW, EVERYBODY COMES TO THIS PROBLEM FROM A DIFFERENT ANGLE AND EVERYBODY HAS DIFFERENT SOLUTIONS TO IT AND REASONABLE MINDS, AND EVERYBODY APPEARS REASONABLE. UM, YOU KNOW, THE SEE THIS, UH, SEE THIS PROBLEM AND, YOU KNOW, WANNA POLISH DIFFERENT FACETS OF IT. AND THAT'S, THAT'S OKAY. THAT'S THE NATURE OF DELIBERATIVE GOVERNMENT. UM, THERE'S, UM, I DON'T HAVE A CUTE WHITEBOARD WITH WHICH THE CONDESCEND YOU OR MY COLLEAGUES, BUT I DO HAVE SOME QUESTIONS. UM, ONE OF THOSE IS, WE HEARD UP HERE, UM, THE WORDS C P S HAS NOT SOUGHT OUT OTHER SOURCES OF MONEY THAT WOULD MAKE, UH, VITIATE THE NECESSITY FOR A RATE INCREASE. TRUE OR FALSE? FALSE. FALSE. WHAT HAVE YOU GUYS LOOKED FOR BEFORE YOU'VE COME HERE? I WANNA SAY DOLLARS. OKAY. THANKS FOR CLEARING THAT UP. UM, ANOTHER ONE, AUSTIN'S RATE STRUCTURE IS MORE EQUITABLE. MY UNDERSTANDING IS THAT THEY'VE GOT AN INCLINING BLOCK RATE. UH, HOW IS THAT MORE EQUITABLE THAN OURS? WELL, IT IS THE, THE DIRECTION THAT OUR LOCAL, YOU KNOW, A LOT OF OUR LOCAL ADVOCATES HAVE, HAVE PUSHED US IN, UH, CERTAINLY, YOU KNOW, IT INC SENSE, YOU KNOW, DOWNWARD PRESSURE ON USAGE. SO, UH, YOU KNOW, THE, THE, FOR A COMMUNITY LIKE SAN ANTONIO, OUR, MY BIGGEST CONCERN WITH AN INCLINING BLOCK BLOCK RATE, AND CORY IS GONNA RUN THE NUMBERS WITH, WE'RE GONNA SHOW COUNCIL WHAT AN AUSTIN TYPE RATE WOULD LOOK LIKE. MY BIGGEST CONCERN IS THOSE INEFFICIENT HOMES OF LOWER INCOME RESIDENTS WHO ARE STILL USING 2000, YOU KNOW, KILOWATT HOURS A MONTH BECAUSE THEIR HOMES ARE INEFFICIENT. I THINK IF WE'RE GONNA MOVE IN THAT DIRECTION, WE GOTTA KEEP A, A SIGNIFICANT, SIGNIFICANT EYE ON, UH, ENERGY EFFICIENCY, BECAUSE THERE WILL BE, IT WILL HAVE AN UNINTENDED CONSEQUENCE. SO, SO THEY HAVE A DIFFERENT RATE STRUCTURE. I THINK IT REMAINS TO BE SEEN WHETHER IT'S MORE EQUITABLE OR UNEQUITABLE, BUT I THINK, YOU KNOW, WE'LL, WE'LL CERTAINLY LOOK INTO IT. THE WAY I SEE IT IS THAT THAT RATE STRUCTURE, AND YOU TOLD ME IF I'M WRONG, WRONG, THAT RATE STRUCTURE, UM, ARGUABLY INCENTIVIZES LOWER PER CAPITA USAGE, RIGHT? YES, SIR. YEAH, SURE. BUT IT ALSO SEEMS THAT THEIR HOUSING PRODUCT IS A LOT NEWER. ABSOLUTELY. RIGHT? AND SO IF WE JUST POINT TO THAT RATE STRUCTURE AS OPPOSED, AS OPPOSED TO POINTING TO THE REALITIES OF THE HOMES AND HOW THEY'RE BUILT AND THE MATERIALS THEY'RE USED IN THERE. UM, I'M NOT SURE WE'RE BEING HONEST, COUNCILMAN. WE HAVE DONE ACTUALLY A WHITE PAPER ON THIS. UH, AND, UH, I WILL BE GLAD TO SHARE THAT WITH, WITH COUNCIL. THOSE ARE MY QUESTIONS. YES, SIR. THANK YOU. COUNCIL MEMBER ELIAS. COUNCIL MEMBER RIDGE. THANK YOU, MAYOR. UM, I JUST WANTED TO END WITH, UH, SOMETHING I, I WANNA SHARE. UH, I'VE GOT, UH, A RESIDENT, A FRIEND IN DISTRICT NINE, AND HE AND I HAVE GONE BACK AND FORTH OVER THE C P SS ENERGY ISSUES. AND, UH, ONE OF THE THINGS HE ASKED ME TO DO WAS GET SOME THINGS IN WRITING. LET'S GO AHEAD AND GET THE C P S, UH, BOARD TO PUT IN WRITING THAT THEY'LL DO THIS AND THEY'LL DO THAT. AND I SAID, YOU KNOW, THAT'S NOT SOMETHING WE'RE GONNA BE ABLE TO DO BETWEEN OUR CONVERSATION AND TODAY. BUT I DID TELL HIM I WOULD BRING THESE ISSUES UP AND, AND HE'S SAYING A LOT OF WHAT WE'VE JUST TALKED ABOUT, UH, THE PEOPLE IN OUR COMMUNITY NEED ASSURANCES THAT THE POWER PLANTS AND SOUTH TEXAS NUCLEAR PLANT ARE COMPLETELY WINTERIZED AND THEY WON'T SHUT DOWN. NOW, FROM OUR PERSPECTIVE, ARE WE RE WINTERIZED? ARE WE PROTECTING THE PEOPLE IN OUR COMMUNITY? COUNCILMAN? WE HAVE, UH, SPENT $2 MILLION THIS YEAR ON OUR WINTERIZATION EFFORTS. WE'VE WINTERIZED, [04:05:01] YOU KNOW, MORE THIS YEAR, PROBABLY TWICE AS MUCH MORE, AT LEAST, UH, AS WE'VE DONE IN PREVIOUS YEARS. STANDARDS ARE CHANGING. SO IN THE YEARS TO COME, WE WILL HAVE TO DO, UH, MORE THAN THAT. BUT, UH, I CAN ASSURE YOU, WE WENT THROUGH THE ERCOT INSPECTIONS AND ALL OF THE WORK THAT WE WERE EXPECTED TO DO FOR, FROM A COMPLIANCE STANDPOINT WAS DONE. CAN YOU ASSURE US THAT THE FUTURE SUPPLY CONTRACTS WILL LIMIT THE MARKUP FOR THE NATURAL GAS LIKE WE HAD? HAVE WE SECURED BETTER GAS FOR OURSELVES IN THE FUTURE? WE, WE'VE, WE'VE SECURED ADDITIONAL FIRM SUPPLY. YES, SIR. UH, WE'VE ALSO SECURED ADDITIONAL STORAGE AND THE AMOUNT OF GAS WE CAN ACTUALLY TAKE OUT OF THAT STORAGE, UH, IN A MAJOR EVENT. SO, UH, WE HAVE DONE WHAT WE THINK IS AFFORDABLE FOR OUR CUSTOMERS. YEAH, HE WANTED THESE IN WRITING, AND I KNOW YOU CAN'T DO THAT. THERE WAS ONE OTHER ONE. I THINK I NEED TO, OKAY, COUNCIL, HERE'S WHAT I CAN DO. MM-HMM. , UH, BECAUSE I JUST TALKED TO CORY ABOUT THIS. UM, AFTER THE COUNCIL MEETING TODAY, UH, YOU'LL, YOU, UH, ALL COUNCIL MEMBERS WILL GET A, A LETTER FROM ME, UH, KIND OF MEMORIALIZING THIS CONVERSATION AND PUTTING THINGS DOWN IN WRITING THAT WE'VE TALKED ABOUT TODAY. SO, SO YOU CAN TELL YOUR CONSTITUENTS THAT, THAT THE C E O OF C P SS ENERGY WAS RESPONSIVE. THE LAST QUESTION I HAVE IS FOR YOUR BOARD, UH, VICE CHAIR WHO'S HERE, AND, UH, BECAUSE THIS IS A DECISION THAT YOU'LL BE ASKED TO MAKE, AND HE WANTED THIS IN WRITING. AGAIN, I KNOW WE CAN'T, BUT WILL YOU HIRE A C E O WHO HAS THE EXPERIENCE TO MANAGE C P S INCREASE POWER PRODUCTION CONTROL COST, AND IS TRANSPARENT ABOUT THE DAY-TO-DAY OPERATIONS? I THINK WHETHER WE HAD A C A NEW C E O TOMORROW, THAT'S EVERY CEO'S JOB. I MEAN, I'M A C E O MYSELF. I THINK THAT ALL OF US STRUGGLE WITH BALANCING AND MAKING REALLY TOUGH DECISIONS. I MEAN, I RECENTLY HAVE TO BALANCE THAT OUR INSURANCE WENT UP 38% FOR OUR EMPLOYEES. AND I'M NOT SURE IF ALL OF YOU'RE AWARE, BUT DID YOU KNOW THAT, UH, NUCLEAR FAMILY TRADITIONALLY PAYS MORE INSURANCE, MORE HEALTH INSURANCE VERSUS SOMEONE WHO'S SINGLE OR A, A CHILD WITH A PARENT? AND SO WE'RE OFTEN, ALL OF US ARE FACED. I, I THINK AS A BOARD OF DIRECTOR AND AS A C E O MYSELF, WHETHER IT IS RUDY, WHETHER IT'S A FUTURE C E O, WE NEED TO HIRE THE INDIVIDUAL THAT WILL BEST MEET THE NEEDS OF NOT JUST TODAY, BUT THE C P S, THE C P S OF TOMORROW. AND SO WE ARE GOING THROUGH A PROCESS RIGHT NOW TO SELECT A SEARCH FIRM. FROM THAT PROCESS, WE'LL ALSO DEVELOP THE REQUIREMENTS FOR THAT NEW C E O. AND SO I GUESS WHAT I'M SAYING, YOU OBJECTIVELY IS THAT IN MY CURRENT ROLE, WHETHER IT'S A C E O FOR MY OWN COMPANY AS A C E O LEADING THE SEARCH, WE WILL DO OUR BEST IN OUR DUE DILIGENCE TO HIRE THE MOST QUALIFIED INDIVIDUALS TO MEET THE NEEDS OF THE C P SS OF TODAY AND TOMORROW. YOU KNOW, THERE'S A LOT OF QUESTIONS THAT PEOPLE ARE ASKING, UH, AND I KNOW THAT IT'S GONNA TAKE A WHILE TO GET ALL OF THOSE ANSWERS TO SATISFY EVERYBODY, BUT I'M SATISFIED ENOUGH WITH THE INTENTIONS OF THE STAFF AND THE ADMINISTRATION AND THE BOARD AT C P S ENERGY THAT WE'RE HEADING IN THE RIGHT DIRECTION. AND I CERTAINLY WILL SUPPORT THIS RATE INCREASE. THANK YOU, MAYOR. THANK YOU. THANK YOU. COUNCIL MEMBER COURAGE. AND ANDY WANTED TO JUMP IN AGAIN? YES. UH, MAR I, I HATE TO BE THE HALL MONITOR AGAIN ON THIS, UH, BUT I WANNA UNDERSCORE AGAIN, THE POINT THAT COUNCILMAN CASTILLO MADE, AND I, AGAIN, I APPRECIATE, YOU KNOW, RUDY AND THE, AND THE, UH, BOARD MEMBERS HERE AT C P S MAKING COMMITMENTS. BUT AGAIN, THERE ARE NOT CONDITIONS ON WHICH, UH, THIS COUNCIL WILL VOTE ON THE RATE INCREASE. AND AS COUNCILMAN CASTILLO POINTED OUT, THEY'RE NOT LEGALLY BINDING. SO, AGAIN, I WANNA MAKE THAT A POINT VERY CLEAR. THANK YOU. YEAH. WELL, THANK YOU ANDY. AND I'LL CLOSE, UH, BY SAYING THAT THIS MEETING ON THE RECORD IS ALSO ABOUT ACCOUNTABILITY, UH, AND THAT'S ALL OF OUR RESPONSIBILITIES. SO, UH, LET ME CLOSE BY SAYING UTILITY RATE ADJUSTMENTS ARE NEVER PLEASANT, BUT FEW WOULD DENY THAT ON OCCASION THEY ARE NECESSARY. AND AS WE WEIGH THIS DECISION, IT'S WORTH NOTING THAT C P S ENERGY HAS NOT SOUGHT OR RECEIVED A RATE ADJUSTMENT FOR EIGHT YEARS. SO TODAY'S VOTE CULMINATES AN EXHAUSTIVE PROCESS ARRIVING AT WHAT THE UTILITY TRULY NEEDS. THIS REQUEST COVERS THE BASICS AND DOES NOT ADD ANY EXTRAS THROUGH THE CITY'S PARTNERSHIP WITH U C P SS. WE ARE USHERING IN A NEW ERA OF ACCOUNTABILITY, AND I WANNA THANK MY COLLEAGUES ON THE C P SS BOARD, AND I SEE DR. MACKEY, UH, IS HERE AS WELL AS VICE CHAIR DOC, UH, JANIE GONZALEZ. UM, AND I ALSO WANT TO THANK THEM FOR THEIR HARD WORK ON THIS PROPOSAL. AND I GREATLY APPRECIATE THE TIRELESS EFFORTS OF INTERIM C P S ENERGY, UH, PRESIDENT AND C E O RUDY GARZA AND HIS TEAM TO ENSURE THAT THE PROPOSAL WAS BOTH PRUDENT AND RESPONSIBLE. I WANNA PARTICULARLY NOTE RUDY'S AND HIS TEAM'S WILLINGNESS TO COLLABORATE WITH THE CITY'S CHIEF FINANCIAL OFFICER, BEN GOEL, AND OUR CITY STAFF. BEN'S INSIGHT AND THOROUGHNESS WAS CRUCIAL IN GETTING US TO THIS POINT IN GETTING THE GREEN KNIGHT FROM BEN WAS ONE OF THE MOST IMPORTANT THRESHOLDS FOR US TO CROSS. IT CERTAINLY WAS FOR ME PERSONALLY. WE DON'T MAKE THIS DECISION LIGHTLY, AND WE KNOW THE NEED. WE KNOW WE [04:10:01] NEED TO EASE THE BURDEN ON RATE PAYERS AS MUCH AS POSSIBLE IN THAT EFFORT, THIS COUNCIL APPROVED $20 MILLION IN ARPA FOR UTILITY ASSISTANCE FOR C P S RATE PAYERS WHO WERE UNABLE TO PAY THEIR BILLS DURING THE C OVID 19 PANDEMIC. AND THE CITY WILL CONTINUE THE EMERGENCY HOUSING ASSISTANCE PROGRAM FOR RESIDENTS FACING DIFFICULTIES PAYING RENT AND UTILITIES. NO TIME IS A GOOD TIME FOR RATE INCREASE, BUT AFTER EIGHT YEARS, IT IS TIME TO DO THE RIGHT THING. AND AS C P S ENERGY CONTINUES TO BUILD TRUST, WE WILL CONTINUE TO ASSESS THEIR NEEDS. MAKING THE RIGHT DECISION TODAY PROTECTS THE FUTURE OF SAN ANTONIO'S ONLY ENERGY COMPANY, A FUTURE THAT WE WILL KNOW SOON WILL BE WITHOUT COAL. AND I WANNA THANK MY COUNCIL COLLEAGUES FOR WORKING CLOSELY WITH C P SS AND MY OFFICE TO WORK OUT THE BEST POSSIBLE SOLUTION FOR OUR COMMUNITY. YOUR DEDICATION AND YOUR FOCUS HAVE MADE THIS A BETTER PROPOSAL, AND I'M CONFIDENT THAT SO LONG AS WE CONTINUE WORKING TOGETHER, C P SS WILL BE THE EXAMPLE OF HOW A PUBLIC ELECTRIC UTILITY CAN PARTNER WITH THEIR GREATER COMMUTER TOMORROW. SO, THANK YOU AGAIN TO MY COLLEAGUES AND ALL THOSE CITIZENS WHO ARRIVED TODAY TO SPEAK THROUGHOUT THIS, UH, PROCESS. IT HAS BEEN A LONG AND ARDUOUS ONE. IT'S BEEN AN IMPORTANT ONE AND A VERY NECESSARY ONE. SO, WITH THAT, LEMME GO AHEAD AND CALL THE VOTE ON BOTH. UH, EXCUSE ME. WE'RE GONNA TAKE ITEMS FIVE AND SIX SEPARATELY, SO WE WILL CALL UP NOW ITEM FIVE, AND THAT IS THE APPROVAL OF ITEM FIVE, WHICH IS THE APPROVAL OF THE REGULATORY ASSET. SO, UH, WITHOUT FURTHER DISCUSSION ON ITEM FIVE, PLEASE VOTE. MOTION CARRIES. ALRIGHT, WE'LL GO NOW TO ITEM SIX. OKAY. AND DISCUSSION IS ENDED ON ITEM SIX, SO WE'LL TAKE THE MOTION FOR APPROVAL OF ITEM SIX. PLEASE VOTE. MOTION CARRIES. ALRIGHT, THANK YOU AGAIN, EVERYONE. UH, I KNOW IT'S BEEN A LONG ITEM, BUT WE DO HAVE, UH, MORE ON OUR AGENDA TODAY. SO WE'RE GONNA MOVE NEXT INTO ITEM 26. [Miscellaneous  ] ITEM 26 IS A RESOLUTION INITIATING HISTORIC LANDMARK DESIGNATION FOR 1 1 7 BURBANK STREET AND WAIVE APPLICATION FEES. ALRIGHT, COUNCIL MEMBER CASTILLO AND, AND, UM, WE DO HAVE ONE CITIZEN, ACTUALLY TWO CITIZENS SIGNED UP TO SPEAK ON ITEM 26. SO I'LL TAKE THEM UP AFTER WE PAUSE, JUST A MOMENT TO ALLOW FOLKS TO FILTER OUT. SO, UM, HENRY AND, AND JULIA, I THINK YOU'RE, YOU'RE BOTH HERE, UH, FOR ITEM 26. SO IF YOU'D LIKE TO COME FORWARD, UM, ARE YOU SPEAKING SEPARATELY OR AS A GROUP? MR. MAYOR? MR. MAYOR, WE WOULD LIKE TO, UM, BE AS A GROUP. OKAY. WELL GO, GO AHEAD. YOU'LL BOTH HAVE THE FLOOR. UH, MR. AND MRS. ROCHA, UH, YOU'LL HAVE SIX MINUTES. OKAY. AND YOU CAN JUST HEAD INTO HIM. OKAY. SO WE'RE GONNA DO THE PICTURES FIRST. DO THE PICTURES FIRST. OKAY. OKAY, I'M READY. OKAY. WE'D JUST LIKE TO GIVE A LITTLE UPDATE OF HOW WE BECA HOW WE GOT THIS PROPERTY. HELLO, CITY COUNCIL MEMBERS. MY NAME IS HENRY ROCHA. MY WIFE JULIA AND I ARE THE OWNERS OF ONE 19 BURBANK STREET. WE LIVE, WE LIVE IN DISTRICT FIVE, AND WE, WE DO NOT LIVE IN A HISTORIC DISTRICT. THE PROPERTY IN QUESTION, WHICH WE PURCHASED IN JULY OF 2021, IS RIGHT NEXT TO US AT ONE 17 BURBANK STREET. THE HOUSE HAS A SQUARE FOOTAGE OF 450 SQUARE FEET. THE HOUSE HAS BEEN VACANT FOR ABOUT SEVEN YEARS NOW. THREE YEARS AGO, WE STARTED THE PROCESS OF BECOMING THE OWNERS BECAUSE THE PROPERTY DID NOT HAVE AN OWNER, NO DEEDED AND NO WILL. WE HAD TO HIRE A LITIGATION ATTORNEY. WE LEARNED THAT THE PROPERTY HAD OUTSTANDING CITY LIENS DATING BACK TO 1994. THE MAN WHO THOUGHT WAS THE OWNER HENRY BIAS, STOPPED PAYING BERRY COUNTY TAXES IN 2018. THE HOUSE IN QUESTION HAS BEEN RENTED OUT FOR 20 YEARS PLUS. AND THESE PICTURES, UM, THE ONES [04:15:01] BEFORE THAT, UM, SHOW HOW THE LAST RENTERS LEFT IT, UM, FULL OF TRASH, WAS NOT KEEPING UP WITH ANY OF THE THE INSIDE STUFF. IN TOTAL, WE HAVE PAID $4,000 IN CITY LIENS, $6,000 IN BACK TAXES, $13,000 IN ATTORNEY FEES, AND WE PAID $16,000 FOR THE PROPERTY WITH A TOTAL OF $39,000. WE SIGNED A CONTRACT WITH J RAMON DE DEMO COMPANY, THEN THEY APPLIED FOR THE DEMO PERMIT WITH THE CITY. WHEN H D R C DID A SITE SURVEY WITH THREE OTHER COMMISSIONERS, ALL THREE COMMISSIONERS AGREED WITH STAFF NOT IN OUR FAVOR, AND SUGGESTED THAT WE REMODEL THE PROPERTY AND RENT IT OUT. THEY TOLD US THEY, WE, THEY WOULD VOTE NO AT OUR H D R C MEETING. WE CONTACTED A GENERAL CONTRACTOR WHO GAVE THE BARE MINIMUM ESTIMATE TO FULLY REMODEL THE HOUSE, AND IT WAS $50,000. THIS WILL BE AN ECONOMICAL HARDSHIP FOR US. OUR PLAN IS NOT TO LEAVE THE PROPERTY VACANT. OUR PLAN IS NOT TO LEAVE THE PROPERTY VACANT. WE WOULD LIKE A SMALL CARPORT, A SHED, A STRING SET, AND A RAISED GARDEN FOR OUR DAUGHTER. WE WALKED OUR STREET AND WE SPOKE TO OUR NEIGHBORS. WE LET THEM KNOW WHAT WAS GOING ON AND THE SITUATION WE ARE CURRENTLY IN. WE WROTE OUT A PETITION AND 40 OF OUR NEIGHBORS SIGNED IN FAVOR OF US DEMOLISHING THE HOUSE ON ONE 17. THIS IS A LIST OF OUR NEIGHBORS WHO ARE IN FAVOR OF DEMOING THE HOUSE. AS YOU CAN SEE, BURBANK STREET HAS A LONG HISTORY OF RESIDENCE RANGING FROM TWO YEARS TO 82 YEARS. ONE 17. BURBANK IS A SHOTGUN STYLE HOUSE, SO OUR 1 7, 1 15 AND ONE 13, BUT THE OFFICE OF HISTORIC PRESERVATION TOLD US WE WERE ONLY GONNA BE LABELED AS LABELED ONE. THEY WERE ONLY GONNA LABEL ONE 17 AS HISTORIC. WE ALSO LEARNED THAT THERE ARE ALSO 700 SHOTGUN STYLE HOUSES THROUGHOUT THE CITY, AND NONE OF THEM ARE GOING TO BE LABELED HISTORIC OR THEY'RE NOT LABELED HISTORIC. AND THE YEARS OF US TRYING TO PURCHASE THIS PROPERTY, THE CITY, THE COUNTY NOR ATTORNEYS TOLD US THE HOUSE MAY BE FLAGGED FOR A HISTORIC LANDMARK. ANOTHER FACT, ON MY STREET, THE CITY IS ALLOWING INVESTORS TO BUILD TWO NEW HOUSES WITHIN GROUND SCREEN POOLS. HOW IS THAT FAIR TO ME? A HOMEOWNER JUST TRYING TO EXPAND MY PROPERTY. ONE LAST NOTE, WHICH I THINK MUST BE SAID. WHEN I WENT TO SPEAK WITH H D R C ON NOVEMBER 17TH, 2021, COMMISSIONER GABRIEL VELAZQUEZ FROM DISTRICT THREE VOTED IN MY FAVOR. WHEN I WATCHED THE NEXT MEETING, WHICH TOOK PLACE ON DECEMBER 1ST, 2021, MR. VELAZQUEZ ASKED FOR HIS COMMENTS TO BE RECORDED IN THE MINUTES BECAUSE THEY WERE ADMITTED. HE ASKED O H P TO ADD THEM AND THEY DECLINED. O H P OMITTED THE COMMISSIONER'S COMMENTS FOR MY CASE. THE COMMISSIONERS THEN VOTED TO HAVE HIS COMMENTS ADDED, AND THE VOTE DID NOT PASS AGAIN. SO WHEN MY AGENDA PACKET WAS SUBMITTED TO THE CITY COUNCIL FOR REVIEW, NOT ALL THE FACTS WERE WERE BEING PRESENTED. HOW CAN AN AVERAGE CITIZEN HAVE A CHANCE WITH AHPS WHO LIMITS THE COMMENTS IN FAVOR OF THEM TO GET WHAT THEY WANT? WHICH IS WHAT, WHAT THAT'S WHAT THEY'RE TRYING TO DO. MAKE THE HOUSE HISTORIC. SO I PLEASE, UM, I ASK Y'ALL TO VOTE NO IN OUR FAVOR. THANK YOU. THANK YOU MR. AND MS. ROCHA, COUNCIL MEMBER CASTILLO. YES. THANK YOU MAYOR. I WANNA THANK MR. AND MRS. ROCHA FOR BEING HERE TODAY AND YOUR WILLINGNESS TO WORK WITH OFFICE OF HISTORIC PRESERVATION THROUGH THIS PROCESS. I ALSO WANNA ALSO THANK THE OFFICE OF HISTORIC PRESERVATION AND, UM, HONORING THEIR DEPARTMENT'S MISSION TO PRESERVE SAN ANTONIO'S RICH HISTORY IN OUR BUILT ENVIRONMENT. FOR THE LAST TWO YEARS, O H P HAS PARTNERED WITH COMMUNITY ORGANIZATIONS TO ATTEMPT TO LOCATE EVERY SHOTGUN HOME IN THE CITY. THEY HAVE IDED OVER 700 OF THESE STRUCTURES, PREDOMINANTLY IN LOWER INCOME NEIGHBORHOODS ON THE NEAR WEST SIDE, EAST SIDE, AND SOUTH SIDE. THESE TINY BUT MIGHTY STRUCTURES SHOWCASE THEIR CULTURAL, ECONOMIC AND LABOR HISTORY OF WORKING CLASS PEOPLE IN SAN ANTONIO, BETTER THAN ANY PLAQUE EVER. UM, O H P IS IN THE PROCESS OF DOCUMENTING THESE STRUCTURES, AND I LOOK FORWARD TO HELPING DE FIVE RESIDENTS LANDMARK THEIR SHOTGUN HOMES SO THAT THEY CAN RETAIN AFFORDABLE HOUSING IN THEIR NEIGHBORHOOD AND LEAVE AFFORDABLE HO HOUSING OPTIONS FOR THEIR FAMILIES IN THE FUTURE. I WILL NOT, HOWEVER, BE IN SUPPORT OF SUCH LANDMARK FOR DESIGNATION TODAY. MR. DOCHA HAS EFFECTIVELY DONE EVERYTHING CORRECT IN THIS INSTANCE, THE STRUCTURE AT 11 1 11 17 BURBANK HAS [04:20:01] SAT VACANT NEXT DOOR FOR YEARS WHEN HE DECIDED TO PAY ALL OF THE BACK, UH, PROPERTY TAXES AND PURCHASE THE PROPERTY. GIVEN SAN ANTONIO'S LACK OF PUBLIC TRANSPORTATION OPTIONS, NEIGHBORHOODS LIKE THIS ALSO SUFFER FROM LACK OF PARKING. AND MR. ROCHA'S FAMILY IS NO DIFFERENT ULTIMATELY WITHOUT ANY KIND OF BACK PAY TAXES PROGRAM WHERE THESE CAN BE WAIVED FINANCIAL SUPPORT TO REHAB, DECONSTRUCT, OR MOVE THESE POTENTIALLY HISTORIC STRUCTURES. I CANNOT IN GOOD FAITH MOVE FORWARD WITH THIS DESIGNATION AT THIS TIME. WHILE INITIALLY MR. ROCHA, O H P IN MY OFFICE HAD COME TO AN AGREEMENT TO USE THIS STRUCTURE AS AN EDUCATION AND WORKFORCE DEVELOPMENT OPPORTUNITY, THE THE COVID SURGE HAS MADE IT UNLIKELY. AND I HOPE THAT I WILL SOON BE ABLE TO SIT HERE IN SUPPORT OF DECONSTRUCTION ORDINANCE THAT ALLOWS FOR THESE MATERIALS TO BE REUSED AND PUT TO USE PREPARING STRUCTURES IN DANGER OF DEMOLITION. UH, WITH THAT, I MOTION TO DENY. SECOND. OKAY, THERE'S A MOTION AND A SECOND FOR DENIAL OF ITEM 26. UM, WE'LL GO AHEAD AND TAKE UP COUNCIL DISCUSSION NOW, AND I DON'T SEE ANYBODY IN THE QUEUE. SO, UM, COUNCIL MEMBER GRO AND THEN COUNCIL MEMBER PERRY. UH, THANK YOU. THIS IS NOT IN MY DISTRICT, BUT YOU HAVE FAMILY THAT LIVE IN DISTRICT THREE THAT HAVE REACHED OUT ON YOUR BEHALF. UM, UH, GABRIEL VELAZQUEZ IS MY APPOINTMENT TO THE HISTORIC, UH, UH, H D R C. AND HE DID BRIEF ME ON THIS. I KNOW WHERE WE'RE, WE'RE TRYING TO GO WITH O H P AND I APPRECIATE IT. I DO. BUT WE, WHAT WE HAVE TO UNDERSTAND IS THAT WHERE WE SIT ON THIS BORDER BETWEEN THREE AND FIVE IS WE'RE TRYING TO BE ABOUT, ABOUT THOUGHTFUL DEVELOPMENT. AND THOUGHTFUL DEVELOPMENT MEANS HAVING AFFORDABLE HOUSING FOR THE RESIDENTS IN THAT DISTRICT AND ASKING THEM TO REHAB A SHOTGUN HOME IS NOT AFFORDABLE. THE WINDOWS ALONE, I CAN'T EVEN IMAGINE HOW MUCH THAT WOULD COST. SO I AM IN AGREEMENT WITH MY COUNCIL COLLEAGUE AND THAT WE, UH, VOTE NO ON THIS TODAY. THANK YOU. THANK YOU. COUNCIL MEMBER GRO. COUNCIL MEMBER PERRY. THANK YOU, SIR. UM, THIS IS A CLASSIC CASE OF PROPERTY RIGHTS VERSUS WHAT THE CITY WANTS TO DO. AND, UM, I I ALWAYS ERR ON THE SIDE OF THE PROPERTY RIGHTS. I MEAN, THIS IS A PROPERTY RIGHTS STATE, RIGHT? UM, AND I RAN INTO THIS SITUATION A NUMBER OF TIMES WHEN I WAS ON THE BUILDING STANDARDS BOARD WHERE OWNERS CAME IN WITH VERY DILAPIDATED STRUCTURES. I MEAN, EVEN WORSE THAN THE PICTURES THAT YOU'VE SHOWN UP HERE. AND YOU LOOK AT THAT AND SAY, OR, OR WHY WOULDN'T WE DEMOLISH THIS NO MATTER WHAT THE HISTORICAL SIGNIFICANCE IS ON THAT? AND WE HAD A NUMBER OF THOSE COME THROUGH. AND I, EVERY ONE OF 'EM, I SAID, HEY, IF THE OWNER CAN'T AFFORD TO UPKEEP THOSE, IF THEY CAN'T AFFORD TO REHABILITATE THOSE, THOSE STRUCTURES ON THEIR OWN PRIVATE PROPERTY, I THINK THEY HAVE EVERY RIGHT TO GO IN AND TAKE DOWN A STRUCTURE AND PUT SOMETHING NEW ON IT. I MEAN, I I, I HAVE A HARD TIME WHEN I HEAR THIS THAT WE, WE WANT TO PRESERVE THIS AND PRESERVE THAT AGAINST THE WILL OF THE PROPERTY OWNERS. AND SO I, I'M GONNA TOTALLY SUPPORT YOU ON THIS AND, UM, WE WILL SEE WHERE THIS GOES IN THE FUTURE. AS FAR AS THE OFFICE OF HISTORICAL, UH, PRESERVATION. I, I UNDERSTAND THEIR, WHAT THEY'RE TRYING TO DO AS WELL, BUT SOMETIMES WE OVERSTEP WHAT THE INTENT WAS ON THESE THINGS. WE, YOU KNOW, IN LOOKING AT SHOTGUN HOUSES. I UNDERSTAND, BUT DO WE HAVE TO PRESERVE, I THINK YOU SAID THE NUMBER 700. DO WE HAVE TO PRESERVE ALL 700 TO SHOW THE HISTORICAL SIGNIFICANCE HERE IN SAN ANTONIO? I DON'T THINK SO. SO I TOTALLY SUPPORT YOU. THANK YOU VERY MUCH. THANK YOU. COUNCIL MEMBER PERRY, ANY FURTHER DISCUSSION ON ITEM COUNCIL MEMBER COURAGE. THANK YOU. MAYOR, COULD YOU JUST CLARIFY FOR US, IF, UH, THIS IS DENIED AS, AS IT'S PENDING RIGHT NOW, WHAT ARE YOUR PLANS AND WHAT'S THE TIMELINE FOR YOUR PLANS? UM, DO THIS ONE. SO WE LIVE RIGHT NEXT TO, UM, ONE 17 BURBANK STREET. UM, SO WE LIVE AT ONE 19. SO MY PLAN IS TO DEMOLISH THE HOUSE, UM, AT A CAR, A SINGLE CARPORT ON THAT PROPERTY, BECAUSE MY WIFE PARKS ACROSS THE STREET AT HER PARENTS' HOUSE. SO WHEN IT RAINS, WHEN IT'S COLD, THEY HAVE, SHE HAS TO CROSS WITH MY DAUGHTER WHEN THEY GO TO SCHOOL. MY, MY PLAN IS TO ALSO ADD A PLAYGROUND FOR MY DAUGHTER. SHE LIKES THAT. ADD A SMALL GARAGE TO THE BACK AND A RAISED [04:25:01] GARDEN BED FOR MY DAUGHTER ALSO. 'CAUSE SHE LIKES GARDENING. SHE'S INTO GARDENING, SO IT IS NOT GONNA BE A VACANT LOT. OKAY. THANK YOU. THAT'S ALL, MAYOR. THANK YOU. COUNCIL MEMBER COURAGE. ANY FURTHER DISCUSSION ON ITEM 26? ALL RIGHT. HEARING NONE. THERE IS A MOTION AND A SECOND FOR DENIAL OF ITEM 26. AND AGAIN, UH, TO CLARIFY, YES, VOTE IS IN FAVOR OF DENIAL. A NO VOTE IS TO APPROVE THE ITEM. SO, UH, PLEASE VOTE. UH, MAYOR, CAN YOU CLARIFY THAT? I'M SORRY. YES, I THINK YOU GOT THAT. YES. VOTE UH, SUPPORTS THE DENIAL MOTION. YES, CORRECT. YEAH, MOTION CARRIES. AND IT'S GOOD TO KNOW YOU'RE STILL PAYING ATTENTION. THANK YOU. UM, ALRIGHT, UH, WITH THAT, THAT IS, UM, ALL THE ITEMS ON OUR AGENDA TODAY. THANK YOU VERY MUCH. UH, MR. AND MRS. ROCHA, THANK, UH, WE DO HAVE ONE, WE DO HAVE ONE ITEM ON OUR EXECUTIVE SESSION. UH, BUT BEFORE WE GO BACK AND CONVENE AN EXECUTIVE SESSION, I DO WANT TO TAKE A POINT OF PERSONAL PRIVILEGE [POINT OF PERSONAL PRIVILEGE  ] AND NOTE THAT WE HAVE TWO BIRTHDAYS TODAY WE'RE GONNA BE RECOGNIZING. SO, UH, IF WE CAN SING EXTRA LOUDLY, HAPPY BIRTHDAY TO MARIO WHO, UM, CELEBRATED LAST WEEK AND PHYLLIS, WHO WAS CELEBRATING THIS WEEK. HAPPY BIRTHDAY TO, HAPPY BIRTHDAY TO YOU. HAPPY BIRTHDAY. HAPPY BIRTHDAY TO YOU. AND I, I, I ALSO NEGLECTED TO RECOGNIZE OUR CITY MANAGER CUSTOMARILY HAS A REPORT AT THE END OF THE AGENDA. ERIC, DO YOU STILL HAVE A REPORT? UH, HAPPY BIRTHDAY, COUNCILMAN AND COUNCILWOMAN. ALRIGHT. ALL RIGHT. AND THERE IS, UH, THERE ARE TWO CAKES IN THE BACK. UH, BUT IN THE MEANTIME, UH, GRAB A SLICE 'CAUSE THE TIME IS NOW 1:46 PM ON THURSDAY, JANUARY 13TH, 2022. PURSUANT TO CHAPTER 5 5, 1 OF THE TEXAS GOVERNMENT CODE SEC, EXCUSE ME, CHAPTER 5 5, 1 OF THE TEXAS GOVERNMENT CODE. THE CITY COUNCIL OF THE CITY OF SAN ANTONIO WILL NOW MEET AN EXECUTIVE SESSION TO CONSULT WITH THE CITY ATTORNEY'S OFFICE AND DELIBERATE TO DISCUSS THE ITEMS POSTED ON THE JANUARY 12TH B SESSION AGENDA, BUT NOT REACHED TO INCLUDE FOLLOWING ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO SECTION 5 5 1 0.087, THE PURCHASE EXCHANGE LEASE OR VALUE OF REAL PROPERTY PURSUANT TO SECTION 5 5 1 0.072 IN THE CONSULTATION WITH THE ATTORNEY CITY ATTORNEY FOR LEGAL ISSUES OR ADVICE RELATED TO COLLECTIVE BARGAINING LITIGATION INVOLVING CITY AND C OVID 19 PREPAREDNESS UNDER 5 5 1 0.071. ALL RIGHT, GOOD AFTERNOON. THE TIME IS 2:20 PM ON THIS 13TH DAY OF JANUARY, 2022. CITY COUNCIL HAS RECONVENED FROM ITS EXECUTIVE SESSION. NO OFFICIAL ACTION WAS TAKEN. THIS MEETING IS NOW ADJOURNED. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.