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>> GOOD AFTERNOON, MAYOR AND COUNCIL.
WELCOME TO THE CITY COUNCIL REGULAR MEETING OF B SESSION, FEBRUARY 20TH, 2019.
>> MAYOR NIRENBERG: GOOD AFTERNOON, AND WELCOME, EVERYONE, TO OUR CITY COUNCIL B SESSION.
WE HAVE TWO ITEMS ON OUR AGENDA
[2. 19-2049 Briefing and possible action regarding the City’ “3 Plus 9”, the City’s FY 2019 Budget status for the first three months, updated estimates for revenues and expenditures for the remaining nine months, and the recommended FY 2020 Budget Calendar. [María Villagómez, Assistant City Manager; Justina Tate, Budget Director]]
TODAY.>> THANK YOU, MAYOR AND COUNCIL.
WE HAVE TWO ITEMS, AND WE'D LIKE TO REVERSE THE ORDER AND BEGIN WITH THE 3 PLUS 9 FINANCIAL REPORT WITH REGARD TO OUR BUDGET.
OF COURSE, OUR FISCAL YEAR BEGAN OCTOBER 1, AND WE PROVIDED THE CITY COUNCIL WITH AN UPDATE AS TO OUR BUDGET PERFORMANCE, INCOME EXPENSE ON A QUARTERLY BASIS.
THIS WILL BE OUR FIRST PRESENTATION, OCTOBER THROUGH DECEMBER OF 12/31.
WE'LL ALSO PROVIDE YOU WITH AN UPDATE.
JEFF COYLE WILL BE HERE TO DISCUSS THE LEGISLATURE AND DISCUSSION WITH REGARD TO SENATE BILL 2 AND PROPERTY TAX REVENUE CAPS.
SO WE'LL GIVE YOU AN UPDATE AND THE IMPACT ON OUR CITY BUDGET, AS WE KNOW IT TODAY.
AND THEN WE'LL ALSO SHARE WITH YOU A PROPOSED CALENDAR FOR THE 2020 BUDGET PROCESS.
I'LL BE SO SORRY TO MISS ALL OF THAT WITH YOU, BUT NONETHELESS, WE'LL BE PRESENTING THAT TODAY BECAUSE VERY SOON THE COUNCIL MUST ADOPT THAT BUDGET SO THAT IT IS KNOWN WELL IN ADVANCE FOR THE ENTIRE COMMUNITY AS TO THE BUDGET PROCESS.
SO TODAY WE'LL GIVE YOU THAT UPDATE ON OUR PERFORMANCE.
WE HAVE A NUMBER OF OUR STAFF THAT ARE HERE THIS AFTERNOON TO DISCUSS OUR CURRENT FINANCIAL POSITION.
MARIA, JUSTINA, BEN GORZELL, TROY ELLIOT AND I AND ANY OTHERS WE NEED TO CALL UPON, WE HAVE SEVERAL DEPARTMENT HEADS HERE THIS AFTERNOON, WILL ALSO BE AVAILABLE TO ANSWER QUESTIONS.
WE ARE IN A GOOD POSITION TODAY WITH REGARD TO OUR BUDGET, AS COMPARED TO OUR ACTUALS, AS COMPARED TO WHAT WE BUDGETED.
HOWEVER, OUR FUTURE IS UNCERTAIN, GIVEN THE CONVERSATION AT THE LEGISLATURE AND OTHER UNCERTAINTIES THAT WE KNOW ARE ON THE HORIZON WITH REGARD TO EXPENSE.
SO WITH THAT, I'LL TURN IT OVER TO JUSTINA, AND THEN WE'LL BE AVAILABLE TO ANSWER QUESTIONS.
GOOD AFTERNOON, MAYOR AND CITY COUNCIL.
TODAY WE WILL COVER THE FISCAL YEAR 20193 PLUS 9 BUDGET AND FINANCIAL REPORT.
DURING TODAY'S PRESENTATION, I WILL REVIEW THE FIRST QUARTER FINANCIAL STATUS REPORT, AS WELL AS PROJECTIONS FOR REVENUES AND EXPENDITURES FOR THE REST OF THE YEAR.
I WILL PROVIDE AN UPDATE ON THE FIRST QUARTER RESULTS FOR OUR BUDGET INITIATIVES AND PROVIDE AN OVERVIEW OF THE RECOMMENDED FISCAL YEAR 2020 BUDGET CALENDAR.
THREE COMPONENTS, FIRST BEING THE RESTRICTED FUNDS AT $889 MILLION.
RESTRICTED FUNDS ARE GOVERNED BY FEDERAL, STATE, OR LOCAL LAWS, AND REVENUES OF THESE FUNDS MUST BE USED ON A SPECIFIC PURPOSE.
FOR EXAMPLE, THE AIRPORT FUNDS ARE REGULATED BY FEDERAL LAWS, AND ALL REVENUES GENERATED BY THIS FUND MUST BE USED TO SUPPORT AVIATION ACTIVITIES.
THE HOTEL OCCUPANCY TAX IS GOVERNED BY STATE LAWS, AND ALL FUNDS MUST BE USED FOR CONVENTION, HOTEL INDUSTRY, AND ARTS.
FINALLY, THE SOLID WASTE FUND IS REGULATED BY STATE AND LOCAL LAWS.
REVENUES COLLECTED BY THIS FUND MUST BE USED FOR SERVICES SUCH AS GARBAGE AND RECYCLING PICKUP, AS WELL AS BRUSH COLLECTION.
OUR SECOND COMPONENT IS OUR CAPITAL BUDGET AT $690 MILLION.
THIS PROVIDES FUNDING FOR SOME OF OUR LARGE CAPITAL INVESTMENTS TO INCLUDE OUR 2017 BOND PROGRAM, AS WELL AS AIRPORT PROJECTS.
THIS IS OUR LARGEST OPERATING FUND AT $1.26 BILLION.
THIS PROVIDES FOR FUNDING FOR THE CITY'S CORE SERVICES TO INCLUDE PUBLIC SAFETY, STREETS, AND PARKS.
I'D LIKE TO PRESENT A LITTLE MORE DETAIL ON THE GENERAL FUND.
AS I MENTIONED, THE GENERAL FUND IS $1.26 BILLION.
AND IT'S FUNDED BY FOUR MAIN REVENUE COMPONENTS.
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WHICH GENERATES APPROXIMATELY $363 MILLION IN REVENUES.AS A REMINDER, THE CITY RECEIVES 14% OF ALL CPS GAS AND ELECTRIC GROSS REVENUES AS A RETURN ON INVESTMENT AND PAYMENT IN LIEU OF TAXES.
PROPERTY TAXES IS THE SECOND LARGEST REVENUE SOURCE AT APPROXIMATELY $362 MILLION, AND SALES TAX GENERATES APPROXIMATELY $295 MILLION IN FISCAL YEAR 2019.
THE FINAL COMPONENT OF OUR REVENUES IS OTHER RESOURCES.
THIS INCLUDES REVENUES SUCH AS OUR EMS TRANSPORTS, TELECOMMUNICATION AND OTHER USER FEES.
THESE REVENUES COMBINED FUND THE BASIC CITY SERVICES PROVIDED BY THE CITY.
THESE INCLUDE PUBLIC SAFETY AT 63% OF THE GENERAL FUND, STREETS, AND PARKS.
THE REMAINING FUND SERVICES SUCH AS LIBRARIES, CODE ENFORCEMENT AND ANIMAL CARE SERVICES.
FOR THE FIRST QUARTER, REVENUES ARE AHEAD OF BUDGET BY $2.42 MILLION, AND WE'VE SEEN LENS EXPENSE IN DEPARTMENT /-PS OF APPROXIMATELY $800,000.
BASED ON OUR FIRST QUARTER FINANCIAL RESULTS, THE GENERAL FUND IS PROJECTED TO BE AHEAD OF BUDGET BY APPROXIMATELY IN AUDIO] IN ADDITIONAL REVENUE AND $800,000 IN LESS EXPENSE, WHICH REPRESENTS 1/10 OF 1% OF THE GENERAL FUND.
FOR THE FIRST QUARTER REVENUE RESULTS, AS I MENTIONED, WE ARE AHEAD OF BUDGET BY $2.42 MILLION, AND BY THE END, WE ARE PROJECTED TO BE AHEAD BY 2.43 MILLION.
I'LL REVIEW IN MORE DETAIL THE PROPERTY TAX, SALES TAX AND CPS ENERGY.
FOR OUR PROPERTY TAX FOR OUR FIRST QUARTER, WE ARE AT BUDGET.
AS A REMINDER, THE CITY RECEIVES THE CERTIFIED APPRAISAL ROLE FROM THE OFFICE IN JULY.
AS A RESULT, WE ADOPT OUR BUDGET WITH A TOTAL APPRAISED VALUE FOR THE CITY OF SAN ANTONIO.
THEREFORE, THERE IS LITTLE DEVIATION BETWEEN WHAT WE BUDGET AND WHAT WE COLLECT.
FOR THE FIRST QUARTER, THE REVENUES WE HAVE RECEIVED ARE IN LINE WITH THE BUDGET, AND WE ARE PROJECTING TO BE IN LINE WITH THE BUDGET BY THE END OF THE YEAR.
IN THE FIRST QUARTER FOR SALES TAX, WE ARE AHEAD OF BUDGET BY $1.6 MILLION, AND WE'RE PROJECTING TO BE AHEAD OF BUDGET BY THE END OF THE YEAR BY $2.1 MILLION.
THE GRAPH ON THE RIGHT ILLUSTRATES THE BUDGET AND ACTUAL COLLECTIONS FOR CITY SALES TAX FOR THE FIRST FOUR MONTHS OF THE YEAR.
THIS INCLUDES JANUARY REVENUES, WHICH REFLECT OUR CHRISTMAS SALES.
THESE REVENUES WERE SLIGHTLY AHEAD OF BUDGET BY $200,000 AND 3.4% OVER LAST YEAR'S COLLECTION.
THE 2019 PROJECTION IS 3.3% HIGHER THAN THE 2018 ACTUAL COLLECTIONS.LL WITH CPS, WE ARE BELOW BUDGET FOR THE FIRST QUARTER BY APPROXIMATELY $800,000 DUE TO MODERATE WEATHER IN THE FIRST QUARTER.
THE TABLE ON THE RIGHT ILLUSTRATES OUR BUDGET AND ACTUAL COLLECTIONS FOR THE FIRST FOUR MONTHS OF THE YEAR.
AS YOU CAN SEE, THE PAYMENT FOR THE JANUARY COLLECTION IS $4 MILLION BELOW BUDGET.
WE ARE CONTINUING TO MONITOR THIS REVENUE SOURCE AND WILL PROVIDE AN UPDATE AT OUR 6 PLUS 6 BUDGET AND FINANCE REPORT.
HOWEVER, WE ARE ANTICIPATING TO BE AT BUDGET BY THE END OF THE YEAR AS A RESULT OF OUR SUMMER COLLECTIONS.
IN SUMMARY, THE GENERAL FUND AND EXPENSES COMBINED ARE UP OVER $3 MILLION AS COMPARED TO WHEN WE PRESENTED THE 2019 ADOPTED BUDGET IN SEPTEMBER.
IN DECEMBER, A CORRESPONDENCE WAS PROVIDED, PROVIDING A PRELIMINARY UNAUDITED FINANCIAL ANALYSIS UPDATE -- I'M SORRY.
AN UNAUDITED FINANCIAL UPDATE FOR FISCAL YEAR 2018.
AS COMPARED TO THE FINAL PROJECTION FOR FISCAL YEAR 2018, THE GENERAL FUND BALANCE WAS 1.2% AHEAD OF BUDGET OR $14 MILLION.
THIS, COUPLED WITH THE $3 MILLION IN MORE REVENUES AND LESS EXPENSES, PROVIDES FOR A BETTER ENDING BALANCE IN 2019.
WE ARE RECOMMENDING AUDIO] 2020 BUDGET PROCESS AND DISCUSSED AS PART OF THE MID-YEAR BUDGET ADJUSTMENT.
AT THIS TIME, WE WILL PRESENT THE CITY'S FIVE-YEAR FINANCIAL FORECAST AND HAVE ADDITIONAL REVENUE AND EXPENDITURE INFORMATION FOR FISCAL YEAR 2019.
NOW I'D LIKE TO TRANSITION TO SOME OF OUR RESTRICTED FUNDS.
THE SLIDE ON THE SCREEN SHOWS THE HOTEL OCCUPANCY TAX RATE, WHICH IS 16.75%, WHICH IS LEVEED ON EVERY HOTEL ROOM NIGHT.
OF THIS AMOUNT, THE CITY RECEIVES 9%.
7% IS USED FOR SERVICES SUCH AS CONVENTION AND FACILITIES, VISIT SAN ANTONIO, HISTORY AND PRESERVATION, AND OUR ARTS.
THE REMAINING 2% IS A RESTRICTED SOURCE OF REVENUES TO PAY FOR DEBT RELATED TO THE CONVENTION CENTER.
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THE HOT TAX GENERATES $70.8 MILLION IN REVENUES.FOR THE FIRST QUARTER, WE ARE $900,000 AHEAD OF BUDGET, AND BY THE END OF THE YEAR ARE PROJECTED TO BE $1.3 MILLION AHEAD OF THE BUDGET BY THE END OF THE YEAR.
IN THE FIRST QUARTER THE CITY EXPERIENCED A 4% INCREASE IN HOTEL ROOM RATES AND A 7% INCREASE IN NUMBER OF HOTEL ROOMS RENTED.
THE DEPARTMENTS FUNDED BY OUR HOT TAX CAME IN SLIGHTLY BELOW BUDGET.
NEXT IS THE DEVELOPMENT SERVICES ENTERPRISE FUND.
THIS IS A $34 MILLION FUND THAT IS SUPPORTED FOR PLAN REVIEWS AND INSPECTIONS.
FOR FISCAL YEAR 2019, WE ARE ANTICIPATING THAT DEVELOPMENT FEE REVENUES COLLECTED WILL BE SLIGHTLY AHEAD OF BUDGET BY ABOUT $800,000, AND OUR EXPENSES WILL BE SLIGHTLY BELOW BUDGET BY ABOUT $400,000.
DURING 2018, WE SAW AN INCREASE OF 34% IN THE NUMBER OF NEW RESIDENTIAL PERMITS ISSUED.
AND THROUGH THE FIRST QUARTER, WE CONTINUED TO REALIZE THE GROWTH IN THE RESIDENTIAL PERMIT.
AS WE HAVE SEEN AN INCREASE OF 30% OVER THE LAST YEAR.
OUR SOLID WASTE FUND IS AN ENTERPRISE FUND WITH AN OPERATING BUDGET OF $126 MILLION.
AS YOU MAY RECALL, THE 2019 BUDGET INCLUDED A FEE INCREASE FOR OUR LARGE CART AND FEE DECREASE IN OUR SMALL CART TO CREATE A PRICE DIFFERENTIAL IN $10 A MONTH IN SAVINGS FOR A RESIDENT.
THE GOAL WAS TO ENCOURAGE RECYCLING MORE AND THROW AWAY LESS, BEING ABLE TO GO TO A SMALLER CART.
WE THE FEE CHANGES, WE AUDIO], HOWEVER, WE ARE NOW PROJECTING ONLY 20% WILL MOVE FROM A LARGE CART BY THE END OF THE YEAR.
THIS CREATES THE $5.8 MILLION IN ADDITIONAL REVENUES BY THE END OF THE YEAR.
FOR EXPENSES, OUR FIRST QUARTER, WE HAVE $500,000 IN LESS EXPENSE, AND WE ARE PROJECTED TO BE $1.4 MILLION IN LESS EXPENSE BY THE END OF THE YEAR.
NEXT I'D LIKE TO HIGHLIGHT A FEW OF OUR BUDGET INITIATIVES.
THE 2019 BUDGET INCREASED THE STREET MAINTENANCE PROGRAM BY $11 MILLION FOR A TOTAL PROGRAM OF $110 MILLION.
WITH THIS FUNDING, WE ARE PROJECTED TO DO OVER 1200 PROJECTS.
FOR THE FIRST QUARTER, WE ARE ON SCHEDULE WITH 129 PROJECTS BEING COMPLETED.
CITY CREWS BEGAN WORKING ON PROJECTS DESPITE THE RAIN IN THE FIRST QUARTER, AND CITY CONTRACTS HAVE STARTED WORKING ON THE PROJECTS FOR THE S&P PROGRAM AND WILL CONTINUE AS THE WEATHER GETS HOTTER AND PERMITS MORE PRODUCTION OF OUR STREET PROJECTS.
THE VAST MAJORITY WILL BE COMPLETED IN THE THIRD AND FOURTH QUARTER WITH 90% OF THE PROJECTS COMPLETED BY SEPTEMBER OF 2019.
10% OF THOSE PROJECTS WILL BE COMPLETED BY MARCH OF 2020 DUE TO THE SIZE AND THE COMPLEXITY OF THOSE PROJECTS.
THE 2019 BUDGET ALSO INCLUDED $19 MILLION FOR OUR SIDEWALKS.
WITH THIS FUNDING, WE ARE PROJECTING TO COMPLETE 40 MILES OF SIDEWALK PROJECTS.
FOR THE FIRST QUARTER, WE ARE ON SCHEDULE WITH FOUR MILES OF SIDEWALK COMPLETED WITH MOST OF THE PROJECTS BEING COMPLETED IN THE THIRD AND FOURTH QUARTER.
ALL 40 MILES OF SIDEWALKS ARE ANTICIPATED TO BE COMPLETED BY SEPTEMBER OF 2019.
THE 2019 BUDGET INCLUDED $25 MILLION FOR AFFORDABLE HOUSING PROGRAMS. ADDITIONALLY, IN NOVEMBER OF 2019, A LOCAL PHILANTHROPIST DONATED $1 MILLION FOR A ROOF PROGRAM.
THE NEIGHBORHOOD AND HOUSING SERVICES DEPARTMENT IS ON TRACK WITH THIS BUSINESS PLAN THAT THEY HAD DEVELOPED.
A STATUS UPDATE ON THE IMPLEMENTATION OF THE AFFORDABLE HOUSING BUSINESS PLAN IS PROVIDED TO COUNCIL ON A MONTHLY BASIS.
ADDITIONALLY, THE COMPREHENSIVE PLANNING COMMITTEE RECEIVES UPDATES ON A REGULAR BASIS.
OVERALL, OUR PROGRAMS ARE ON TRACK.
CONSTRUCTION ON NEW UNITS AND PRESERVATION OF EXISTING UNITS IS UNDER WAY.
ADDITIONALLY, OUR DOWN PAYMENT ASSISTANCE FOR HOME BUYERS AND THE COORDINATED HOUSING SYSTEM HAS ALSO STARTED AND IS ON SCHEDULE.
THE BUDGET INCLUDES A TOTAL OF $760,000 TO ESTABLISH THE YOUTH REENGAGEMENT CENTER AT THE FRAN GARRETT COMMUNITY CENTER AND FOR CASE MANAGEMENT COUNSELING IN CONNECTION WITH TO EDUCATION.
WORKING IN PARTNERSHIP WITH OUR GOODWILL INDUSTRIES OF SAN ANTONIO AND COMMUNITIES IN THE SCHOOL, THE NEXT LEVEL YOUTH OPPORTUNITY CENTER WAS OPENED LAST FRIDAY, FEBRUARY 2019.
IN THE FIRST YEAR, WE ANTICIPATE SERVING 600 YOUTH.
AND OF THE 250 ENROLLED IN EDUCATION PROGRAMS AND 140 ENROLLED IN JOB TRAINING.
WE ARE ALSO PRESENTING THE RECOMMENDED BUDGET CALENDAR FOR 2020.
WE ARE ASKING FOR YOUR INPUT BY
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NEXT WEDNESDAY, AND WE WILL BE SENDING OUT THE FINAL BUDGET CALENDAR ON MARCH 1ST.MAJOR MILESTONES INCLUDE THE COMMUNITY INPUT PROCESS, WHICH GOVERNMENT AND PUBLIC AFFAIRS WILL BE STARTING NEXT MONTH.
WITH THE FIVE-YEAR FORECAST AND BUDGET ADJUSTMENT TO BE PRESENTED TO CITY COUNCIL ON APRIL 17TH.
WE ARE RECOMMENDING THE GOAL-SETTING SESSION TO BE HELD ON JUNE 25TH WITH A PROPOSED BUDGET TO BE PRESENTED ON AUGUST 8TH AND ADOPTED ON SEPTEMBER 12TH.
I'D LIKE TO PROVIDE A SHORT OVERVIEW OF THE PROPERTY TAX REVENUE CAP.
THE STATE HAS INTRODUCED LEGISLATION TO LOWER THE CAP FROM 8% TO 2.5%.
THIS LEGISLATION WAS INTRODUCED AS SENATE BILL 2, AND IF APPROVED, WOULD HAVE SIGNIFICANT IMPACT ON THE CITY'S BUDGET.
IF A 2.5% CAP HAD BEEN IN PLACE DURING THE PAST DECADE, IT WOULD HAVE COST THE CITY OVER $300 MILLION IN LESS REVENUE AND WOULD HAVE REDUCED THE SERVICES PROVIDED BY THE GENERAL FUND BY $82 MILLION.
ADDITIONALLY, ON AVERAGE, A CITY HOMEOWNER WOULD REALIZE SAVINGS OF $3.77 PER MONTH.
IF APPROVED, THE PROPOSAL WOULD SIGNIFICANTLY REDUCE THE CITY'S ABILITY TO CONTINUE TO INCREASE CITY COUNCIL POLICIES SUCH AS AFFORDABLE HOUSING, TRANSPORTATION, AND OTHER CITY COUNCIL PRIORITIES.
BASED ON THE PROPOSED LEGISLATION, THIS BILL IS ANTICIPATED TO IMPACT THE CITY'S FISCAL YEAR 2021 BUDGET.
TO GIVE AN ADDITIONAL CONTEXT, 1% REDUCTION IN THE PROPERTY TAX REVENUE CAP EQUATES TO A LOSS IN REVENUE OF $68 MILLION OVER 5 YEARS.
IN SUMMARY, THE FISCAL YEAR 2019 GENERAL FUND HAS A BETTER ENDING BALANCE.
HOWEVER, WITH THE UNCERTAINTY WITH THE STATE, WE ARE RECOMMENDING RESERVING THAT BETTER ENDING BALANCE FOR FISCAL YEAR 2020.
WITH THAT CONCLUDES MY PRESENTATION.
I'D BE HAPPY TO TAKE ANY QUESTIONS.
>> MAYOR NIRENBERG: THANK YOU VERY MUCH FOR THAT PRESENTATION, JUSTINA.
WITH REGARD TO THE FINAL THING YOU MENTIONED THERE ON THE RECOMMENDATION, WHAT IS THE CALENDAR FOR OUR MID YEAR ADJUSTMENTS?
>> SO WE ARE PLANNING TO PRESENT THE FIVE-YEAR FORECAST, AS WELL AS THE MID-YEAR ADJUSTMENTS ON APRIL 17TH.
AND COUNCIL WOULD ADOPT THE MID-YEAR BUDGET ADJUSTMENT ON APRIL 18TH.
>> MAYOR NIRENBERG: APRIL 18TH, OKAY.
>> VIAGRAN: THANK YOU VERY MUCH.
AND THANK YOU, CHERYL, FOR THIS B SESSION AND FOR THIS PRESENTATION HERE.
A QUICK QUESTION FIRST IS DO WE HAVE -- IS THERE ANY DATA OR IMPACT -- DID IT IMPACT US WITH THE VARIANCE OF HELP THAT WE GAVE ANYONE DURING THE GOVERNMENT SHUTDOWN, DURING THE DEPARTMENT OF HUMAN SERVICES OR ANYTHING LIKE THAT? DID IT MAKE AN IMPACT IN OUR BUDGET IN ANY WAY?
AND THEN NEXT, I DID HAVE A QUESTION ON THE GENERAL FUND, JUST FOR MY EDIFICATION, THE ASTERISK UNDER POLICE AND FIRE, PUBLIC SAFETY TOTAL, 63%.
THE ASTERISK SAYS IT INCLUDES PARK POLICE.
HOW MUCH IS THE PERCENTAGE IF WE DO TAKE PARK POLICE OUT?
AND THEN FOR THE SIDEWALK PROGRAM, IF YOU COULD REPEAT THAT ON SLIDE NUMBER 18, 40 MILES TO BE COMPLETED BY 2019.
SO $10 MILLION FROM THE BOND SIDEWALK WILL BE COMPLETED CITYWIDE.
>> THE SIDEWALK PROGRAM IS CITYWIDE, SO $9 MILLION IS FUNDED THROUGH THE ADVANCED TRANSPORTATION AND $10 MILLION THROUGH OUR BOND PROGRAM.
>> VIAGRAN: THE BOND, BUT EVERY DISTRICT HAS A CERTAIN AMOUNT OF SIDEWALK DOLLARS ALLOCATED.
DISTRICT THREE HAD $9 MILLION.
SO I'M JUST TRYING TO GET THE BREAKDOWN OF PER DISTRICT, WHAT AMOUNT.
>> ROUSEY IS HERE, SO HE'LL SPEAK TO THE ISSUE.
>> ON THE BOND, WE HAD $48 MILLION FOR SIDEWALK.
DISTRICT 8 AND 10 DID NOT HAVE MONEY.
THE OTHER DISTRICTS -- YOU HAD THE HIGHEST ONE, $9 MILLION.
AND COUNCIL DISTRICT ONE ALSO HAD $9 MILLION.
HAVE Y'ALL ALLOCATED A CERTAIN
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AMOUNT PER DISTRICT THAT YOU WANTED TO COMPLETE IN THIS FISCAL YEAR?>> WE ARE LOOKING TO DO PROBABLY $2 MILLION OR SO PER DISTRICT, WORKING THE DISTRICTS, IDENTIFYING THOSE PROJECTS, AND BUILDING.
THE DISTRICT THAT HAS LARGER DOLLAR FIGURE LIKE YOURS, WE HAVE TO DO A LITTLE MORE THAN $2 MILLION TO MAKE SURE WE COMPLETE THOSE PROJECTS IN FIVE YEARS' TIMEFRAME.
>> VIAGRAN: FOR CLARIFICATION THEN, SO IS THAT $2 MILLION OR $3 MILLION A YEAR PER DISTRICT, IS THAT INCLUDED IN THE $10 MILLION?
AND THEN FINALLY, I THINK, IF I COULD, WE HAD OUR IGR COMMITTEE MEETING AND, OF COURSE, THE REVENUE CAP CAME UP, AND I THINK BECAUSE IT HITS ALL OF THE TAXING ENTITIES, I WOULD LIKE TO SEE MAYBE AT OUR MID-YEAR REPORT WHAT THE IMPACT, CITYWIDE OR COUNTYWIDE, WOULD THAT LOOK LIKE DOLLAR-WISE? WHAT WOULD THAT LOOK LIKE IN THE SCHOOL DISTRICTS, IN THE VARIOUS SCHOOL DISTRICTS? WHAT WOULD THAT LOOK LIKE ANY UNIVERSITY HEALTH SYSTEM AND HOW THAT -- IF IT'S AT THE CAP OF 2.5.
BECAUSE I THINK, JUST LOOKING AT IT AS A CITYWIDE ISSUE, WE HAVE TO LOOK AT WHOLISTICALLY AND SEE WHAT THAT MEANS TO THE ENTIRE COUNTY AREA AND ALL OF THE SERVICES THAT COULD BE IMPACTED CITYWIDE, IF WE COULD.
>> I THINK WE CAN GATHER THAT, COUNCILMAN, THE PIECE THAT WE WON'T KNOW IS THE SCHOOL DISTRICTS BECAUSE UNTIL THE STATE DETERMINES HOW MUCH STATE MONEY THEY'LL PUT IN TO MAKE UP FOR REDUCED PROPERTY TAX REVENUES, WE DON'T KNOW THE BOTTOM LINE.
ALL THE OTHER ENTITIES SHOULD BE ABLE TO CALCULATE WHAT THAT CAP WOULD MEAN TO THEM.
>> VIAGRAN: I THINK WE KIND OF TOUCHED ON IT A BIT IN IGR.
IF YOU COULD EVEN JUST TAKE ONE SCHOOL DISTRICT AND KEEP THE 2.5 AND SEE WHAT THAT WOULD LOOK LIKE, BECAUSE THERE HAS TO BE A PERCENTAGE MADE UP BY THE STATE.
BUT IF WE COULD JUST RUN NUMBERS THAT WAY, THAT WOULD BE HELPFUL.
>> MAYOR NIRENBERG: THANK YOU.
I SAT IN ON THE CPS MEETING THE OTHER DAY, AND SOMETHING WAS SAID ABOUT THEIR BUDGET, AND THAT WAS THAT THEY HAD ACTUALLY PAID LESS THAN 14% TO THE CITY.
AS A MATTER OF FACT, I THOUGHT I HEARD AT ONE TIME IT WAS 12%.
AND ANOTHER YEAR IT MIGHT BE 13% OR A PORTION THEREOF.
I WOULD LIKE TO HAVE AN EXPLANATION OF THAT SINCE THE COMMITMENT IS SUPPOSED TO BE 14% OF GROSS REVENUE.
>> UP TO 14% OF GROSS REVENUE.
BUT BEN WILL EXPLAIN THE FORMULA.
IT'S UP TO 14% OF GROSS REVENUES.
THERE ARE SOME REVENUES THAT ARE EXEMPT FROM THE 14%.
FOR EXAMPLE, SCHOOL DISTRICTS DON'T PAY THE 14%.
THE OTHER BIG CATEGORY IS WHEN CPS SELLS REVENUES IN THE OPEN MARKET IN IRCOT, THE FUEL COMPONENT IS NOT SUBJECT TO THE 14%.
I HAVE NOT SEEN ANYTHING ANYWHERE NEAR 12.
WE'RE GENERALLY PROBABLY 13.5%, NORTH OF USUALLY 13.5%.
AND HOW ABOUT CONTRIBUTION? HOW IS THAT DERIVED?
>> SAWS IS SET -- THE BOND ALLOWS FOR BE TRANSFERRED SINCE THEIR CREATION IN 1992.
THAT WAS PART OF WHAT WAS NEGOTIATED AS PART OF THAT TRANSACTION WHEN THEY CONSOLIDATED THE AUDIO] AND -- WHAT WAS THE OTHER ENTITY CALLED? ALAMO REUSE CONSERVATION DISTRICT.
SO WHEN THEY CREATED SAWS, THEY SET THAT.
WE HAVE NOT CHANGED IT SINCE THAT TIMEFRAME.
>> COURAGE: IS THAT WRITTEN INTO THEIR BOND INDEBTEDNESS, THE 5%?
>> THE BOND INDENTURE SAYS UP TO 5%.
>> COURAGE: SO THE CITY HAS THE FLEXIBILITY, WE AS THE COUNCIL, TO GO UP TO 5% OR INCREASE IT OR LEAVE IT THE WAY IT IS, RIGHT?
>> COURAGE: MY CONCERN IS THEY'VE GOT 500 DAYS OF CASH ON HAND.
THAT SEEMED LIKE A PRETTY EXTENSIVE AMOUNT OF MONEY TO HAVE ON HAND WITH RATE INCREASES THEY'VE HAD AND THE CITY NOT GETTING ITS FULL ENTITLEMENT.
SO THAT'S SOMETHING I'D LIKE TO SEE US DISCUSS A LITTLE BIT MORE, MAYBE IT AT THE MID-YEAR MEETING.
ANYWAY, THANK YOU FOR ANSWERING MY QUESTIONS.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.
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CASH THAT'S COME IN.AS YOU MAY HAVE HEARD AT THAT MEETING THIS WEEK, THE CASH ON HAND IS IN LINE WITH THE CAPITAL REQUIREMENTS THAT ARE ALREADY APPROPRIATED WITH REGARD TO SEWER AND WATER DELIVERY INFRASTRUCTURE, SO THAT'S NOT LIQUID CASH DISCRETIONARY SPENDING.
AND THE COMMENT THAT I THINK WE'RE DOING GREAT FINANCIALLY.
I THINK THE NUMBERS SHOW THAT.
I THINK THE SURPLUS SHOWS THAT AS WELL.
I'LL RECALL BACK WHEN I WAS ON COUNCIL, WE HAD A SIMILAR SURPLUS FROM CPS.
AND THE BIG INITIATIVE AT THE TIME, JUST LIKE RIGHT AROUND BUDGET SEASON, EVERYBODY WANTS TO SPEND, SPEND, SPEND.
SO WE DID A CCR AT THAT POINT.
BUT WE ASKED COUNCIL NOT TO SPEND THE MONEY, TO SET IT ASIDE, AND WE DID A TWO-YEAR BUDGET.
AND WHAT I HAD DONE IS I HAD GONE AROUND TO LOOK AT ALL THE AAA CITIES, AND TWO THINGS THAT THE MAJOR AAA CITIES HAD WERE A TWO-YEAR BUDGET, AND THEY ALSO HAD HIGH RESERVES.
I THINK 15% WAS THE RESERVE AMOUNT AT THAT TIME.
WE PUSHED THOSE TWO THINGS WITH THE CITY TO DO WITH OUR SURPLUS.
I THINK THAT WAS PART OF THE REASON, FROM MY UNDERSTANDING, THAT WE GOT THE AAA RATING AT THE TIME.
SO I LOVE THE RECOMMENDATION, I COMPLETELY AGREE WITH IT.
I DON'T KNOW WHEN IT COMES UP TO US, BUT I WOULD PUSH THE COUNCIL TO NOT SPEND, SPEND, SPEND, BUT TO SET THAT MONEY ASIDE AND CONTINUE ON WITH THE TWO-YEAR BUDGET CONCEPT.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN HALL.
[1. 19-2055 Briefing on the Public Safety Radio System Project. [Ben Gorzell, Chief Financial Officer; Erik Walsh, Deputy City Manager]]
MAYOR, THE SECOND ITEM ON THE AGENDA FOR THIS AFTERNOON IS REGARDING OUR RADIO SYSTEM.
WHAT WE'D LIKE TO DO IS GIVE YOU AN UPDATE, AS THE COUNCILMEMBERS KNOW, BECAUSE WE HAVE DISCUSSED THIS AT OUR PUBLIC SAFETY SUBCOMMITTEE SEVERAL TIMES.
CRAIG, ARE YOU KICKING IT OFF? CRAIG HOPKINS, OUR IT DIRECTOR, INFORMATION TECHNOLOGY DIRECTOR, IS GOING TO GIVE YOU THE PRESENTATION THIS AFTERNOON.
TODAY IS REALLY TO GIVE YOU AN UPDATE ON THE STATUS OF THE IMPLEMENTATION.
THE COUNCIL APPROVED THE CONTRACT AFTER WE SPENT ABOUT TWO YEARS WORKING ON THE RPF, CIRCULATING THAT, HAVING THE BID SUBMITTED, ANALYZING THEM, AND SELECTING A VENDOR TO WORK WITH US.
THIS TIME IN THE RADIO REPLACEMENT, WE ARE RE-PARTNERING WITH BEXAR COUNTY AND CPS ENERGY TO ACQUIRE INTEROPERABLE AMONG THE JURISDICTION COUNTY AS WELL AS FOR THE CITY BY DOING THIS JOINT PROJECT.
SO TODAY IS TO GIVE YOU AN UPDATE.
WE HAVE OTHER STAFF HERE TO ANSWER QUESTIONS AFTER HE PRESENTS.
LARGE TECHNOLOGY PROJECT THAT WE'RE WORKING ON, IT'S ALSO IMPORTANT, BECAUSE THIS TRULY IS FOR PUBLIC SAFETY.
BUT IT HAS AN OPPORTUNITY ALSO TO BRING OPERATIONS TOGETHER ACROSS MULTIPLE AGENCIES AS WE GO FORWARD.
SO BEFORE I GET STARTED, A COUPLE OF FOLKS, RUDY FROM CPS ENERGY, AND RENEE GARNER FROM CPS ENERGY HAS BEEN AUDIO].
I ALSO HAVE ALL THESE FRIENDS OVER HERE ON THE LEFT FROM FIRE AND POLICE WHO HAVE BEEN GREAT ADVOCATES GOING FORWARD.
CHIEF RODRIGUEZ, AND IN THE BACK, OUR NETWORK MANAGER, HAS A VERY INTERESTING ROLE IN THIS PROJECT.
HE DOESN'T REPRESENT THE CITY.
WHICH IS AS PROJECT MANAGER I TURN TO ALL THE TIME FOR DETAILS.
GET READY, IF I HAVE A TOUGH QUESTION, THAT'S WHERE I'M GOING TO GO, DANIEL.
I'M GOING TO START WITH THE BOTTOM LINE UP FRONT, RIGHT? SO WE CAN UNDERSTAND WHY WE'RE HERE.
FIRST, WE WANT TO COME TO YOU PERIODICALLY AND GIVE YOU AN UPDATE ON THIS PROJECT.
THIS IS A 42-MONTH PROJECT, AND IT'S GOT A COUPLE OF YEARS IN BURN-IN, ONCE IT GETS IN PLACE AS WELL.
SO WE'LL BE TALKING ABOUT THIS FOR SEVERAL YEARS AS WE MOVE FORWARD.
I'LL GIVE YOU A LITTLE MORE OF THE TIMELINE.
AT THIS MOMENT, WE ARE ON SCHEDULE.
WE HAVE BEEN WORKING THROUGH OUR FIRST MAJOR MILESTONES.
[00:30:01]
CALLED DETAILED DESIGN.WE /SKWRA*US CAME OUT OF AT THE END OF THE YEAR.
SIGNIFICANT OPPORTUNITY FOR US TO DESIGN THE SYSTEM AND SET THE COURSE FOR THE REST OF THIS, AND WE ARE ON SCHEDULE WITH W THAT.
COLLABORATION ACROSS THREE AGENCIES.
I'D LIKE TO THINK OF THEM AS FORMING, STORMING, NORMING, AND PERFORMING.
WE DID OUR FORMING, AND WE DID SOME STORMING, AS THREE AGENCIES WORKING TOGETHER, AS YOU CAN IMAGINE.
I WILL OFFER THAT WE ARE IN THE NORMING STAGE.
I THINK WE'RE STARTING TO HIT OUR STRIDE AND UNDERSTANDING HOW TO WORK TOGETHER.
THAT DOESN'T MEAN WE ALL HAD TO REINTRODUCE OURSELVES TO EACH OTHER AS WE GOT STARTED ON THE PROJECT.
A VERY STRONG RELATIONSHIP WITH THE DAILEY & WELLS PARTNER.
SIGNIFICANT WORK BETWEEN THE JOT, THE JOINT OPERATIONS TEAM, WORKING WITH THEM, SO THAT IS STRONG.
ONE OF THE KEY REASONS IS TO TALK ABOUT THE LEASE AGREEMENTS WE NEED ON THE TOWER SITES AS WE GO FORWARD AND ANY CHANGES TO THE PROJECT AS WE MOVE FORWARD.
THIS IS ALL PREPPING FOR MARCH 7TH.
WE'LL BE BRINGING AN ORDINANCE FOR APPROVAL, WHICH I'LL GET TO AT THE END AS WELL.
SO VERY QUICKLY WHAT WE'RE GOING TO TALK ABOUT IS A QUICK BACK BRIEF ON THE CURRENT SYSTEM.
THE INTERLOCAL AGREEMENT THAT'S IN PLACE BETWEEN THE THREE AGENCIES.
A HIGH-LEVEL TIMELINE BETWEEN NOW AND THE END OF THE PROJECT, KEY INFRASTRUCTURE COMPONENTS, WHICH HAS TO DO WITH FIBER, LEASE AGREEMENTS, EQUIPMENT WE'RE GOING TO WORK THROUGH AND A QUICK BUDGET UPDATE AS WELL.
JUST TO BACK UP A SECOND, THE CURRENT RADIO SYSTEM WAS INSTALLED IN 2004.
IT ALREADY HAS 11,000 SUBSCRIBERS ON IT AND ALSO 56 EXTERNAL AGENCIES PARTICIPATING.
BUT IT IS A SYSTEM THAT REALLY IS FIXED IN OUR CAPABILITY TO GO FORWARD.
IT HAS A FIXED AMOUNT OF ASSIGNABLE ADDRESSES, MUCH OF THE EQUIPMENT IS AT END OF LIFE, AND WE'RE READY TO MOVE ONTO THE NEWER SYSTEM AS WE GO FORWARD.
IT'S BEEN A VERY RELIABLE SYSTEM.
I ACTUALLY JUST SPENT TIME WITH THE IT RADIO TEAM LAST WEEK.
IT OPERATES VERY WELL, BUT IT IS STILL VERY MANUALLY CUMBERSOME TO PROGRAM AND TO MANAGE THE INS AND OUTS OF THE RADIOS THEMSELVES, ACROSS FIRE AND PD AS WE GO ON AND OFF THE SYSTEM.
OUR INTENT IS TO REPLACE THIS SYSTEM AS A PUBLIC SAFETY RADIO SYSTEM GOING FORWARD.
BUT AT THE SAME TIME, OUR CPS PARTNERS HAVE A SEPARATE SYSTEM THAT THEY'VE BEEN WORKING ON SINCE 2002, WHICH IS A MOTOROLA HARMONY SYSTEM, AND IT IS COMING UP FOR END OF LIFE AT THE END OF 2018.
SO IT WAS A GREAT OPPORTUNITY FOR US TO POOL OUR RESOURCES AND SAY, IF WE'RE GOING TO HAVE A SYSTEM, LET'S DO IT TOGETHER.
AND SO CPS, SAWS AND ALL OF OUR OTHER AGENCIES WORKING TOGETHER WILL BE STAKEHOLDERS ON THE NEW SYSTEM AS WE GO FORWARD.
SOME KEY COMPONENTS OF THE NEW SYSTEM, AND CHERYL TALKED ABOUT A FEW AS SHE OPENED US UP, BUT ENHANCED COVERAGE.
THIS WAS THE WAY IT WAS EXPLAINED TO ME.
IT'S MY SIMPLEST LAYMAN'S TERM TO EXPLAIN IT.
EVER USE YOUR CELL PHONE AND YOU WATCH THE SIGNAL BAR GO DOWN ON YOUR PHONE, AND YOU'RE, LIKE, WHAT AM I GOING TO LOSE? THE NEW SYSTEM, EVEN IF THE SIGNAL IS WEAK, THE STRENGTH IS BETTER.
SO IT MEANS A FIRST RESPONDER CAN BE FURTHER AWAY FROM A RADIO TOWER SITE AND ACTUALLY HAVE A WEAKER SIGNAL BUT STILL HAVE THE STRENGTH TO HEAR CLEARLY IN THE INTERACTION.
WE GET USED TO DROPPING BETWEEN TOWERS.
WE'RE GOING TO ALSO TALK ABOUT MORE TOWERS.
WE ALL LEARNED THIS FROM THE LESSONS OF 9/11, BUT THE ABILITY TO BRING MULTIPLE AGENCIES ON A COMMON RADIO SYSTEM.
THE NEW P25 SYSTEM ALLOWS US TO BRING MULTIPLE AGENCIES INSIDE SAN ANTONIO, BUT ALSO AGENCIES OUTSIDE SEASON I DON'T EVEN ON THIS AS WELL.
AUSTIN, OTHER AGENCIES AS WE GO FORWARD.
SIGNIFICANT EFFICIENCIES IN THIS, YOU'RE GOING TO HEAR THIS MANY TIMES.
WE'RE DOUBLING THE SYSTEM, DOUBLING THE CAPABILITIES, DOUBLING THE AMOUNT OF USERS, AND WE THINK WE'RE GOING TO BE PRETTY MUCH THE SAME COST OVERALL GOING FORWARD.
NOW, THERE'S A LOT OF NUMBERS TO EXPLAIN THAT, BUT EFFICIENCIES BY BRINGING INFRASTRUCTURE TOGETHER, DOING SYSTEMS TOGETHER, BRINGING PARTNERS TOGETHER AS WE GO FORWARD.
CLEARLY THE PUBLIC SAFETY COMPONENT OF THIS WHERE FIRE, EMS, SHERIFF, PD, ALL CAN WORK TOGETHER IN A COMMON SINGLE RADIO SYSTEM.
BUT ALSO THINK OF CPS AND SAWS AS FIRST RESPONDERS IN A DISASTER AS WELL.
WE'VE USED THE STORY OF THE TORNADOES WE HAD NOT TOO LONG AGO WHERE THEY NEED TO BE ON SCENE JUST AS FAST AS EVERYBODY
[00:35:03]
ELSE AND BEING ON A COMMON SAFETY SYSTEM IS HELPFUL TO THAT.AND OVERALL SHOULD BE LOWER COST TO THE PUBLIC BECAUSE WE ARE GOING TO SHARE THE RESOURCES GOING FORWARD.
THE CURRENT SYSTEM COVERS ABOUT 1,200 SQUARE MILES ACROSS THE CITY, AND WE EXPECT THAT TO GROW TO AS MANY AS 2,000 SQUARE MILES AS WE GO FORWARD, WITHOUT ADDING SIGNIFICANT COSTS ON TOP OF WHAT WE HAVE TODAY.
SO THAT'S KIND OF AN UPDATE OF WHERE WE'RE GOING WITH THAT SYSTEM.
THE INTERLOCAL AGREEMENT WAS PUT IN PLACE AT THE TIME OF THE CONTRACT SIGNING AS WELL BETWEEN THE THREE AGENCIES.
AS I SAID, WE'RE KIND OF IN THE NORMING STAGE AS WE GET INTO OUR OPERATIONAL CYCLE.
THERE ARE REALLY THREE TEAMS WORKING TOGETHER.
THE EXECUTIVE TEAM, WHO ARE HELPING DRIVE THE STRATEGIC DECISIONS.
THE TECHNICAL TEAM, WHO ARE WORKING ACROSS THE DIFFERENT AGENCIES WHO HAD VERY SPECIFIC EXPERTISE IN THEIR DIFFERENT SYSTEMS, AND THE OPERATIONS PUBLIC SAFETY TEAMS THAT WORK ACROSS TOGETHER AS WELL.
SO YOU'LL SEE THAT IN THIS GOVERNANCE STRUCTURE UNDER THE ILA, WHERE WE USE THE EXECUTIVE TEAM.
I WANT TO GO TO THE JOINT OPERATIONS COMMITTEE BECAUSE THAT'S WHERE THE REAL WORK GETS DONE.
THIS IS WHERE WE'RE ABLE TO SEE TECHNICAL REPORT SPECIFICALLY FROM THE INDIVIDUAL AGENCIES, FROM THE DIFFERENT CONSULTANTS, FROM THE DIFFERENT VENDORS, AND THEY ACTUALLY WORK ON AS MANY AS 30 DIFFERENT WORKING GROUPS, SPECIFIC TECHNICAL ISSUES THAT NEED TO BE RESOLVED.
THAT BRING THAT TOGETHER AS A JOINT OPERATIONS COMMITTEE AND AS ONE TEAM, THEY MAKE RECOMMENDATIONS THAT ARE RECOMMENDED UP TO THE EXECUTIVE COMMITTEE.
THE EXECUTIVE COMMITTEE MEETS ONCE A MONTH, MORE, IF NEEDED.
THERE'S A SIGNIFICANT AMOUNT OF RESOURCES AND WORK HAPPENING IN THAT JOINT OPERATIONS COMMITTEE, ESPECIALLY IN THE EARLY PART OF THIS TIMELINE AS WE'RE PUTTING TOGETHER OUR DESIGN.
THE ADVISORY COMMITTEE CAN BE CREATED FOR ANY SPECIAL SITUATIONS.
WE'VE HAD YET TO USE THE ADVISORY COMMITTEE.
BUT THAT MIGHT BE AN EXAMPLE OF A PROBLEM WE RUN INTO THAT NEEDS A SPECIAL GROUP TO GO OFF AND FIGURE OUT HOW TO SOLVE OUTSIDE OF THE NORMAL DESIGN.
IN THE MIDDLE OF THIS, AS WELL, IS A PROJECT MANAGEMENT OFFICE WHERE WE ACTUALLY HAVE PROJECT MANAGEMENT STAFF FROM THE THREE AGENCIES WORKING TOGETHER AS ONE PMO.
SO A LESSON LEARNED FROM PREVIOUS PROJECTS IS DON'T TRY TO RUN THREE SEPARATE PROJECTS IN THREE DIFFERENT AGENCIES AND BLEND THEM TOGETHER.
WE ALL TAKE OFF OUR HATS AND RUN AS ONE PROJECT TEAM AS WE GO FORWARD.
THE INITIAL CONTRIBUTION THAT WAS SET UP IN THE ILA IS SPLIT, AS YOU SEE HERE ON THE SCREEN.
THIS IS THE CAPITAL ALLOCATION.
IT'S ALSO WHAT'S INTENDED TO BE FOR THE FIRST TWO YEARS IN OPERATION, AS WE KIND OF BURN THE SYSTEM IN AND UNDERSTAND IT.
THEN THAT CONTRIBUTION WILL CHANGE TO USAGE, ONCE WE ACTUALLY HAVE THE SYSTEM UP AND RUNNING AND UNDERSTAND WHO IS USING IT MORE THAN OTHER PEOPLE AS WELL.
YOU'LL SEE ALL OUR FINANCIALS BASED ON THIS SPLIT AS WE'VE DONE OUR PLANNING.
11 MAJOR MILESTONES WE NEED TO ACCOMPLISH IN 42 MONTHS.
WE'VE ALREADY ACCOMPLISHED THE FIRST THREE.
I'LL SHOW YOU THAT ON A GRAPHIC HERE IN A SECOND.
AND THAT INCLUDES ON-THE-GROUND COVERAGE TESTING FROM THE FIRST RESPONDERS THEMSELVES AS WE GO IN.
THE LAST TWO MILESTONES IN THOSE 1 1 ARE ACTUALLY A TRUE 60-DAY BURN-IN RATE, WHERE WE CAN ACTUALLY TEST THE SYSTEM AT A VERY DETAILED LEVEL, AND WE'VE ACTUALLY BACKLOADED AUDIO] RESERVES AT THE END OF THE PROJECT SO WE CAN HOLD THAT AS RISK ONCE WE GO THROUGH THE TESTING CYCLE WITH THE VENDOR.
HERE IS THE OVERALL TIMELINE THAT WE'RE WORKING TO.
PROJECT STARTED ON APRIL 20TH, AND OUR FIRST MAJOR MILESTONE WAS THAT DECEMBER 19TH DATE WHERE WE ACTUALLY COMPLETED THE INITIAL DETAILED DESIGN REVIEW.
THAT'S A VERY SMALL SPACE ON A TIMELINE, AND I CAN'T TELL YOU HOW MUCH WORK THAT REALLY TOOK TO GET TO THAT FIRST MAJOR MILESTONE ON THIS CHART.
THAT ACTUALLY SETS THE CONTEXT FOR THE ENTIRE REST OF THE PROJECT.
THE SYSTEM DESIGN, SITE DESIGNS, INVENTORY, AND LAYING OUT THE MASTER PLAN OF WORK.
WE HAVE ACTUALLY ACCOMPLISHED THAT.
WE ARE NOW READY TO START MOVING INTO ITE LEASES.
THAT'S PART OF THE REASON I'M HERE BRIEFING YOU ON THIS TODAY.
AND STARTING THE REMEDIATION WORK OF THE EXISTING SITES, WHICH IS ANY UPDATES THAT HAVE TO BE DONE TO EXISTING SITES WE'RE USING.
[00:40:01]
START NEW CONSTRUCTION OF ADDITIONAL SITES AS WE GO FORWARD.I'LL TALK ABOUT THE SITES A LITTLE MORE AS WE GO FORWARD.
YOU SEE THE BURN-IN DATE, JULY 2021.
COVERAGE TEST HAPPENS BEFORE THAT.
THAT'S REALLY WHERE THE TEAM ON THE GROUND GETS TO SPEND THE 60 DAYS WORKING WITH THE CREW, WITH AN AUGUST COMPLETION AS OUR PLAN.
SO THIS IS KIND OF MY SETUP FOR THE DIFFERENT COMPONENTS OF INFRASTRUCTURE.
CURRENTLY THE SYSTEM TODAY IS A 14-TOWER SYSTEM.
PRIMARILY IN THE CITY OF THE COUNTY.
I DON'T MEAN THAT TO OVERGENERALIZE, BUT YOU'LL SEE A LOT OF TOWERS IN THAT MAP ON THE NORTHERN END IN THE NORTHWESTERN SIDE OF THE COUNTY, THAT'S A 28-TOWER SYSTEM THAT WE'RE MOVING TO, WHICH GIVES US GREATER COVERAGE TO THE NORTH AND NORTHWEST.
WE'RE TAKING THE CURRENT 14-TOWER SYSTEM.
WE'RE REMOVING FOUR OF THOSE TOWERS FROM THE EXISTING INVENTORY AND ARE GOING TO REPLACE THOSE FOUR AND ADD 14 NEW FOR A TOTAL OF 28.
AGAIN, 14 TO 28 IS DOUBLE THE SIZE.
1200 SQUARE MILES TO OVER 2,000 SQUARE MILES IS DOUBLE THE SIZE AS WE GO FORWARD.
WE WILL HAVE THE ABILITY TO HAVE MUCH MORE CAPABILITIES ACROSS THE COUNTY, NOT JUST IN OUR CORE AREAS.
YOU'LL SEE BELOW ONE OTHER POINT IN THERE IS ORIGINALLY ON THOSE NEW SITES -- THOSE ARE LOCATIONS -- WE HAD PLANNED TO BUILD 11 NEW TOWERS, BRAND NEW TOWERS THAT HAD TO GO ON THOSE SITES.
BECAUSE OF THE WORK WITH OUR PARTNERS CPS AND SAWS, WE'VE ACTUALLY BEEN ABLE TO REDUCE THAT AND TAKE ADVANTAGE AND ONLY BUILDING EIGHT TOWERS, WHICH SAVES US CAPITAL COST AS WE GO FORWARD ON THE ORIGINAL PLAN.
28 SITES ACTUALLY BREAK DOWN INTO THE CATEGORIES BELOW.
THERE'S FIVE OWNED BY THE CITY OF SAN ANTONIO.
THERE ARE FIVE THAT ARE OWNED BY SAWS.
AND THEN 11 HAVE A VARIETY OF COMMERCIAL PROVIDERS THAT WE WORK WITH.
THE SEVEN IN CPS INCLUDES ONE THAT IS ONLY FOR THEIR USE.
IT'S PRIMARILY IN AN AREA FOR THEIR STAFF TO USE.
BUT THE 11 COMMERCIAL ARE AROUND THE CITY AND ARE IN DIFFERENT -- WITH DIFFERENT ORGANIZATIONS.
WHEN WE COME FOR THE LEASE AGREEMENTS, IT WILL BE TO APPROVE THE LEASES ON ALL, BUT THE FIVE CITY OF SAN ANTONIO AND FIVE OF THE CPS SITES ARE ZERO DOLLAR LEASES.
SO WE'VE ALREADY MADE THOSE ARRANGEMENTS THAT WE CAN DO A ZERO-DOLLAR AGREEMENT, SHARE THE SITES TOGETHER.
AND THE FIVE SAWS SITES ARE IN KIND CONTRIBUTION.
AS A USER OF THE RADIO COMMUNICATION.
SO 15 HAVE NO DOLLAR EXCHANGE, WHICH HAS BEEN VERY BENEFICIAL FOR US AS WE MOVE FORWARD.
IT ALLOWS US TO REALLY FOCUS ON THE COMMERCIAL SIDE LEASES THAT WE NEED TO WORK THROUGH.
HIGH LEVEL ON THE CAPITAL COSTS FOR THE BUDGET.
PROJECT STARTED, THIS WAS APPROVED ON $80.7 MILLION CAPITAL COST.
THE SPLIT IS BASED ON THE 56, 22, 22, THAT WE TALKED ABOUT.
I WANT TO BE CLEAR TO THE TWO LINE ITEMS BELOW, THERE WERE TWO ITEMS THAT WERE ORIGINALLY NOT ALLOCATED ACROSS THE THREE PARTNERS.
VHF REGIONAL SYSTEM AND SITE ON WHEELS, WHICH IS A TOWER WE CAN DRIVE OUT, PUT THE TRAILER UP AND USE IT AS A TEMPORARY SITE, IF NEEDED.
THEY ARE IN THE $80.7 MILLION PLAN, BUT THEY WERE NOT ALLOCATED TO WHO WAS GOING TO PAY FOR THEM.
SO THOSE ARE TWO ITEMS THAT WE'VE BEEN WORKING AS WE GO FORWARD, AND YOU'LL SEE ONE OF THEM HAS BEEN ALLOCATED.
THE OTHER ONE IS STILL YET TO BE DONE.
SO THIS IS HOW OUR PRELIMINARY CHANGE ORDER WORKS THROUGH.
FIRST THING I WANT YOU TO SEE IS THE 80.695, AS I CALL THE 80.7 IN THE FIRST COLUMN AS IT SPLIT ALREADY ACROSS.
THE NEXT COLUMN, ILA DETERMINATIONS IS THE VHF LAYER, THE $1.2 MILLION THAT I JUST MENTIONED THAT HAD NOT BEEN ALLOCATED HAS NOW BEEN.
THE CITY IS PICKING UP THE PORTION AND THE BEXAR COUNTY IS PICKING UP THE OTHER PORTION.
IT DOESN'T CHANGE THE TOTAL $80.7 MILLION.
THE NEXT COLUMN IS THE CHANGE ORDERS.
WE WERE VERY CAREFUL THAT AS WE ENTERED INTO THIS AGREEMENT THAT WE JUST DIDN'T SHOW UP AND SAY, WELL, THIS IS THE CONTRACT, AND NOW WE GET CHANGE ORDERED AS WE GO THROUGH THE PROJECT.
SO THE TEAM, REALLY THE JOC, THE JOINT OPERATIONS COMMITTEE, HAS SPENT TIME NOT ONLY IN DESIGN
[00:45:03]
BUT GOING BACK THROUGH ALL THE ORIGINAL ITEMS IN THE ORIGINAL SCOPE AND THE ORIGINAL CONTRACT WE SIGNED WITH DAILEY WELLS.SOME THINGS WERE MADE IN THE CONTRACT THAT HAD TO BE VALIDATED GOING FORWARD.
OTHER THINGS WERE ZERO DOLLARS AND SO FORTH.
AT THE END OF THE DAY, THIS IS A HIGH-LEVEL ESTIMATE.
WE'RE ACTUALLY REDUCING THE COST OF THE CONTRACT.
MEANING WE FOUND MORE MINUSES THAN PLUSES AS WE WORKED IN THE SCOPE.
THESE ARE ALL ITEMS IN SCOPE IN THE CONTRACT.
THESE NEGATIVE 310,000 IS STILL BEING NEGOTIATED.
WE'RE STILL WORKING THROUGH THE.
THIS IS A NOT-TO-EXCEED NUMBER.
WE THINK THIS IS GOING TO BE THE BEST NUMBER WE CAN GET.
THEY'RE STILL WORKING THROUGH IT.
OVER THE NEXT COUPLE WEEKS WE WILL FINALIZE THAT.
THE NICE THING IS, WE'RE NOT GETTING CHANGE ORDERED.
THE TEAMS ARE IN SYNC AND WORKING THROUGH INDIVIDUAL ITEMS. BASED ON THAT, OUR 86.95 PROJECT IS NOW AN 83.85 PROJECT ON THAT PART ALONE.
BUT WE'RE NOT DONE WITH THE STORY YET.
SO NOW IF YOU TAKE THAT 80.35 TO THE LEFT, THERE ARE A COUPLE THINGS THAT NEED TO BE DONE THAT WERE OUTSIDE THE SCOPE OF THE DAILEY & WELLS CONTRACT.
NEW GENERATORS, REMEDIATION OF SHE SHELTERS.
WE DID NOT PLAN FOR GENERATORS AT SOME OF THE SITES THAT NEED CRITICAL POWER.
THAT WAS NOT IN THE NOTE THAT WE SET UP.
UNDERSTAND WHAT THE REQUIREMENTS WERE FOR EACH SITE.
BUT THE JOC ON THE TABLE AS NEW.
AIR CONDITIONERS AND SHELTERS WERE NOT IN SCOPE IN SOME OF THE AREAS, AS WELL AS FIBER COMPONENTS IN SOME OF THESE AREAS AS WELL.
STEEL RE-ENFORCEMENT FOR TOWERS, THOSE TYPES OF THINGS.
SO WE HAVE FOUND $1.6 MILLION OF REMEDIATION AT EXISTING SITES THAT NEEDS TO BE ACCOMPLISHED IN ORDER TO MAKE ALL THE SITES UP TO PAR THAT WE NEED.
THE SECOND COLUMN IS SPECIFICALLY FOR LEASES AND FIBER.
THE MAJORITY OF THIS NUMBER, 1.7 MILLION, IS AN AGREEMENT WITH CPS TO USE THEIR FIBER TO GET US TO A MAJORITY OF THE SITES THAT WE'RE WORKING THROUGH AS WELL.
AGAIN, NOT A DAILEY & WELLS REQUIREMENT.
IT WAS SOMETHING FOR US TO WORK THROUGH AS A TEAM TO DETERMINE WHAT WAS THE BEST THING TO PUT THE INFRASTRUCTURE IN PLACE TO SUPPORT THE TOWERS.
THE ONE THING I LOVE ABOUT THE PARTNERSHIP WE'RE HAVING HERE IS CPS HAS STAKE IN THE GAME, JUST LIKE ALL OF US.
SO THEY BRING TO THE TABLE FIBER BACKHAUL.
AND AS WE'VE LOOKED AT OTHER TELECOM PROVIDERS OR OTHER TECHNOLOGY SOLUTIONS, THE MOST RESILIENT INFRASTRUCTURE WE HAVE IS PARTNERING WITH CPS TO SUPPORT THESE TOWERS.
SO WITH A COMBINATION OF THEIR FIBER BACKHAUL, AS WELL AS GENERATORS FOR CRITICAL POWER WHERE WE NEED THEM AND CPS'S FACILITIES, WE THINK WE HAVE THE BEST SOLUTION AND PARTNERS WITH A STAKE IN THE GAME.
WE KNOW IF THERE'S A PROBLEM IN THE INFRASTRUCTURE, THEY'RE GOING TO BE JUST AS EAGER WE ARE TO MAKE SURE IT OPERATES AS OPPOSED TO WORKING WITH A ONE-OFF VENDOR.
SO THAT'S WHERE OUR $80.3 MILLION CAPITAL HAS NOW GROWN TO 83.7.
AS WE BRING CHANGE ORDERS TO YOU AS THE COUNCIL FOR APPROVAL, IT'S THE TOTAL OF THOSE TWO NUMBERS TOGETHER THAT WE'LL BE ASKING FOR, WHICH WE HAVE BUDGET ALLOCATED TO COVER THAT.
AND MY APOLOGY, AND IT'S ALSO SPLIT BACK TO THE THREE PARTNERS, TO THE 56, 22, 22, WHICH YOU SEE ON THE NEW AMOUNT COLUMN THERE ON THE RIGHT.
THE LAST PART IS THE OPERATING AND MAINTENANCE PART OF THE PROJECT.
SO THAT WAS THE CAPITAL EXPENDITURE TO GET THE PROJECT UP AND RUNNING.
WE WILL DO BURN-IN FOR THE FIRST TWO YEARS.
AND WHAT I WANTED TO HEAR IS AN OPPORTUNITY FOR YOU TO SEE CURRENT ESTIMATES AROUND OPERATING AND MAINTENANCE COSTS FOR THE PROJECT.
YEAR THREE WILL BE OUR FIRST ANNUAL YEAR IN PRODUCTION.
THE CURRENT CONTRACT IS A $1.6 MILLION CONTRACT ON AN ANNUAL BASIS TO SUPPORT.
WE HAVE SEEN NO CHANGES FROM THAT ORIGINAL ESTIMATE THAT WE NEED TO PUT BACK INTO THE CONTRACT.
HOWEVER, THERE ARE SOME ADDITIONAL FIBER COSTS AND LEASE AND UTILITY COSTS THAT WE NEED TO PUT OUTSIDE OF THE CONTRACT THAT SUPPORT O AND M.
SO YOU CAN SEE OUR YEAR THREE, OUR FIRST YEAR OF OPERATION COST AT 2.3.
THEN YOU CAN SEE A TOTAL OF A 15-YEAR LIFE CYCLE ON THIS PROJECT.
CHANGES TO THE ORIGINAL CONTRACT ACTUALLY GO DOWN BY ABOUT $300,000.
[00:50:02]
CAPITAL SIDE THEY'VE DONE ON THE OPERATIONS SIDE AS WELL.SO THAT GETS US TO 27 MILLION.
THE ADD-BACK OF THE 6.3, 3.3 AND 1.83 AGAIN, YOU CAN USE THE 56, 22, 22 SPLIT AS A GUIDE.
ONCE WE GET TO YEAR THREE, WE'RE GOING TO MOVE TO A USAGE-BASED ALLOCATION INSTEAD OF THE FIXED ALLOCATION, SO IN YEAR THREE, WE CAN ADJUST THE COSTS APPROPRIATELY.
SO FINALLY, THE ASK IS FOR THREE THINGS.
ONE, TO PREPARE YOU FOR THE LEASES THAT WE'RE GOING TO BE BRINGING TO YOU ON MARCH THE 7TH.
THERE WILL BE 15 ZERO-DOLLAR LEASES AND THE REMAINING WILL BE THE COMMERCIAL LEASES WE'LL BE ASKING FOR YOU ABOUT.
1.3 MILLION WILL BE SPLIT BETWEEN THE THREE AGENCIES AND THE PERCENTAGE.
WE'LL BE BRINGING THE CITY PORTION OF THAT, WHICH IS ABOUT $1.7 MILLION OF THE $3 MILLION AT 56%.
AND THE LAST THING IS KIND OF A POLICY CHANGE THAT I WANT TO BRING UP.
BUT UNDER THE CURRENT ILA, THE NETWORK MANAGER, JOHN RODRIGUEZ, ACTUALLY HAS THE AUTHORITY TO EXECUTE CHANGE ORDERS UP TO $500,000, SUBJECT TO AVAILABILITY OF FUNDS.
THAT'S ALREADY BEEN AGREED TO BY THE THREE PARTIES IN THE ILA, BUT WE DID NOT PUT THAT INTO THE CONTRACT WITH DAILEY & WELLS.
SO WHAT WE'RE TRYING TO DO IS SYNC THE TWO TOGETHER, SO DAILEY & WELLS CAN RECOGNIZE THAT AUTHORITY, THAT IF WE NEED TO EXECUTE A CHANGE ORDER UP TO 500,000, THE NETWORK MANAGER WILL BE ABLE TO DO THAT DIRECTLY WITH THE VENDOR.
OUR PROMISE TO YOU IS PERIODIC UPDATES BACK TO YOU TO GIVE YOU AN UPDATE ON THIS PROJECT PROBABLY AT KEY MILESTONES RATHER THAN JUST AT FIXED INTERVALS SO WE CAN TAKE YOUR QUESTIONS.
ALL RIGHT? THANK YOU VERY MUCH.
>> MAYOR NIRENBERG: THANK YOU VERY MUCH, CRAIG, FOR THE PRESENTATION.
FIRST APPLAUD DAILEY WELLS TO SEE THE IMPORTANCE AND NOT JUST RELIANT ON THE ILA.
MY QUESTION IS ON THE CHANGE ORDER REQUEST.
ALL OF THOSE ARE WITHIN THE RANGE THAT WAS AGREED TO BY THE THREE PARTIES ENTERING INTO THE CONTRACT.
>> WITHIN THE RANGE? MY APOLOGY.
>> MAYOR NIRENBERG: CORRECT, YES.
SO ALL OF THOSE ARE CURRENTLY BUDGETS, AND EACH OF THE INDIVIDUAL AGENCIES IS GOING BACK FOR THEIR ALLOCATION.
>> MAYOR, I'LL JUST ADD THAT FOR US, AS CRAIG WALKED THROUGH THAT, OUR COSTS GO UP BY ABOUT 1.8, $1.9 MILLION ON THE CAPITAL SIDE.
WE HAVE CAPITAL DOLLARS TO COVER OUR PART OF THAT INCREASE.
WE SET ASIDE MONEY TO DO FIBER WORK ON THE TOWERS A COUPLE YEARS AGO.
WE DID A LITTLE BIT OF THAT WORK BUT DIDN'T COMPLETE IT BECAUSE WE GOT INTO CONVERSATIONS WITH CPS, AND THE CPS OPTION IS A MORE ROBUST OPTION IN TERMS OF GETTING THE TOWERS.
WE'VE GOT THOSE CAPITAL DOLLARS AVAILABLE TO COVER OUR PIECE OF IT.
THE COUNTY AND CPS WILL GO BACK TO THEIR RESPECTIVE PEOPLE AND DISCUSS THEIR PIECE OF IT.
>> MAYOR NIRENBERG: BUT THE ALLOCATIONS IS NEEDED WITHIN CAPACITY.
IT'S NOT ALLOCATED TO ANOTHER PROJECT.
>> MAYOR NIRENBERG: DO WE HAVE ANY SENSE OF HOW IT IS IN THEIR BUDGETS?
>> I THINK THE FEEDBACK WE'VE GOTTEN FROM THEM IS THEY'RE OKAY.
WE'RE CONTINUING TO NEGOTIATE THOSE.
BUT I THINK OVERALL, THE PROJECT TEAMS MET ABOUT TWO WEEKS AGO, HAVE GONE THROUGH ALL THE INFORMATION YOU'VE SEEN HERE IN SUMMARY, THEY'VE GONE THROUGH IT IN DETAIL AND ARE CERTAINLY PART OF IT AT THE JOC LEVEL, THERE WITH OUR TEAMS, WORKING THROUGH ALL OF THAT DETAIL.
I DON'T EXPECT ANY PROBLEMS THERE.
>> MAYOR NIRENBERG: SO IT'S DISCUSSED AS A COLLABORATIVE TEAM.
>> MAYOR NIRENBERG: ALL RIGHT.
>> VIAGRAN: THANK YOU FOR THE UPDATE HERE.
I DO HAVE A QUESTION BACK TO THE NEXT STEPS IN THE AUTHORIZATION FOR THE CHANGE ORDERS.
SO IT'S COMING FROM CAPITAL BUDGET, THE CITY? THAT'S WHERE IT'S COMING FROM.
THE CITY PORTION COMES FROM THE CAPITAL BUDGET, YES.
>> VIAGRAN: SO THIS EXECUTE CHANGE ORDERS FOR 500,000, YOU SAID THE NETWORK MANAGER.
REMIND ME AGAIN, WHO DOES THE NETWORK MANAGER REPORT TO, THIS ADMINISTRATIVE GROUP?
>> THE NETWORK MANAGER ACTUALLY REPRESENTS THE SYSTEM AND ALL PARTIES AND GENERALLY REPORTS TO THE EXECUTIVE COMMITTEE, WHICH IS MADE UP BY THE THREE AGENCIES TOGETHER.
>> VIAGRAN: AND SO THIS -- THE AUTHORIZATION TO EXECUTE CHANGE ORDERS OF UP TO 500,000, IS
[00:55:03]
THERE A LIMIT OF HOW MANY CHANGE ORDERS YOU CAN EXECUTE IN A YEAR?>> I WANT TO CLARIFY ONE PART OF THAT IS THE NETWORK MANAGER IS A CITY EMPLOYEE.
HE'S ASSISTANT DIRECTOR IN IT, BUT HE'S ASSIGNED TO THIS PROJECT TO REPRESENT ALL THREE ENTITIES.
THE REASON WE'RE ASKING YOU TO LOOK AT THE CHANGE IS WHEN WE DID THE INTERLOCAL AGREEMENT WITH CPS AND THE COUNTY, THAT APPROVAL OR THAT AUTHORIZATION IS IN THE AGREEMENT, NOT ON THE DAILEY & WELLS CONTRACT.
WHEN YOU THINK ABOUT CHANGE ORDERS, THERE IS NO LIMIT.
CHANGE ORDERS DON'T NECESSARILY MEAN INCREASES IN THE PROJECT.
FOR EXAMPLE, I THINK WE SHOWED YOU A COUPLE OF COLUMNS HERE TODAY OF SUMMARY NUMBERS, AND UNDERNEATH THAT ARE CHANGE ORDERS PROBABLY IN THE RANGE OF 15, 20 CHANGE ORDERS THAT ARE ROLLING UP.
THIS GIVES US FLEXIBILITY TO MANAGE THE SMALL-DOLLAR CHANGE ORDERS.
AS LONG AS WE STAY WITHIN THE FUNDS THAT ARE BUDGETS, THAT'S WHAT WE WOULD RECOMMEND MOVING FORWARD WITH.
I THINK I WOULD HAVE FELT MORE COMFORTABLE IF YOU EXPLAINED IT A DIFFERENT WAY TO ME ON THE ONSET, BECAUSE I JUST DON'T FEEL COMFORTABLE WITH GIVING THAT UP OVER TO -- THAT RESPONSIBILITY TO THAT FOR UP TO HALF A MILLION DOLLARS.
SO I GUESS IT WASN'T -- I DON'T FEEL COMFORTABLE WITH THAT RIGHT NOW.
I DO HAVE ANOTHER -- WITH THIS STEP RIGHT NOW.
MAYBE YOU NEED TO COME AND SIT DOWN WITH ME AND GO THROUGH IT BETTER AND SHOW ME IN THE OTHER ILA WHERE THAT IS LAID OUT WITH THE OTHER ENTITIES AND NOT JUST -- AND THAT YOU'RE TRYING TO BRING DAILEY WELLS INTO THAT.
MAYBE THAT COULD BE HELPFUL TO ME.
WE'RE HAPPY TO WALK THROUGH HOW WE GOT TO THAT PROVISION UNDER THE ILA, WHERE ALL THREE ENTITIES ARE COMFORTABLE WITH THAT.
>> AND WE CAN WALK YOU THROUGH WHAT SOME OF THE CHANGE ORDERS LOOK LIKE.
>> VIAGRAN: THAT WOULD BE HELPFUL BECAUSE RIGHT NOW I'M NOT COMFORTABLE WITH THAT HALF A MILLION.
AND ANOTHER SIDE QUESTION, I JUST WANT TO KNOW -- AND I KNOW VANCE MEADE IS HERE -- ABOUT THE RADIOS FOR THE FIRE DEPARTMENT, THE DESIGN FOR THE RADIOS FOR THE FIRE DEPARTMENT.
HAVE THEY BEEN DESIGNED, AND WHERE ARE WE WITH THAT? HAVE YOU MADE YOUR SELECTION?
AS A MATTER OF FACT, WE JUST MET WITH THEM YESTERDAY.
THEY SENT SOME OF THEIR PROJECT MANAGERS AND ENGINEERS DOWN YESTERDAY, AND THEY'RE NOT QUITE AT A TIMELINE FOR US TO BE ABLE TO TELL US WHEN THAT RADIO IS GOING TO BE READY, BUT WE'VE GOT A BROAD LINE.
SO WE'LL PROBABLY BE MAKING THAT DECISION IN 12 TO 18 MONTHS.
WE'LL HAVE A BETTER IDEA OF THAT, I BELIEVE, IN OUR NEXT QUARTERLY MEETING IS WHEN THEY'LL ARE A MORE DEFINITIVE TIMELINE.
I WANT TO MAKE SURE Y'ALL HAVE THE RIGHT RADIOS.
>> MAYOR NIRENBERG: THANK YOU.
I DO HAVE SOME QUESTIONS FOR YOU.
A LOT OF MOVING PARTS ON THIS.
YOU KNOW, WAY BACK WHEN, WHEN WE WERE DOING THIS, THE COUNTY HAD SOME ISSUES, YOU KNOW, AND THERE WAS EVEN RUMORS ABOUT THEM DOING A SEPARATE RADIO SYSTEM.
ARE WE PAST ALL THAT? ARE WE DONE? COUNTY IS ON BOARD? THEY'RE WITH US 100% ON THIS?
WHY ISN'T SAWS UP THERE AS ONE OF THE MAIN PLAYERS?
SO SAWS WILL BE A -- SAWS WAS NOT ONE OF THE ORIGINAL THAT CAME TO THE TABLE TO BE PART OF THE CAPITAL SHARE TO BUILD THE PROJECT UP TOGETHER.
THEY WILL BE A RADIO HOLDER, AS
>> SAWS IS ON THE CPS HARMONY SYSTEM.
SO BY BRINGING CPS INTO THE PARTNERSHIP, SAWS CAME WITH CPS.
[01:00:03]
SO IS CPS PAYING FOR SAWS' WAY IN THIS THING?
SAWS WILL PAY FOR ITS OWN RADIOS.
AND THEN WE TALKED ABOUT THE FACT THAT THERE ARE FIVE SITES THAT WERE USING -- THAT SAWS IS GIVING US NO -- OR GIVING NO LEASE TOWARDS THE PROJECT.
WE'RE ACTUALLY ABLE TO INSTALL ANTENNAS ON SOME OF THEIR INFRASTRUCTURE.
THAT AVOIDS US HAVING TO BUILD TOWERS.
THAT'S AN IN-KIND CONTRIBUTION TO THE PROJECT.
SO WE'RE VALUING THOSE THINGS, SO THAT'S THEIR CONTRIBUTION SO THEY ARE PAYING THEIR FAIR SHARE.
>> PERRY: WHAT IS THEIR FAIR SHARE?
>> I WOULD HAVE TO CALCULATE THE NUMBER FOR YOU.
BECAUSE YOU'VE GOT, YOU KNOW, BEXAR COUNTY AT $17 MILLION.
HOW MANY USERS ARE SAWS GOING TO HAVE COMPARED TO, LIKE, CPS AND BEXAR COUNTY?
>> WE CAN GIVE YOU AN IDEA WHAT THAT LOOKS LIKE.
FROM A USAGE STANDPOINT, ONE, SAWS WILL PAY FOR ITS OWN RADIOS.
THAT'S PART OF THE CONTRIBUTION, VIA IN-KIND.
BUT IN TERMS OF USAGE ON THE SYSTEM, THEY'RE GOING TO BE A MUCH SMALLER USER OF THE SYSTEM.
THEY'RE NOT GOING TO BE ON THE RADIO NEAR AS MUCH AS OUR POLICE AND FIRE OR CPS.
>> PERRY: THIS JUST BOTHERS ME A LITTLE BIT THAT SAWS AUDIO] CAPITAL COST ON THIS THING.
EVEN THOUGH WE ARE GETTING AN IN-KIND ON USING THEIR TOWERS, BUT I WOULD LIKE TO SEE THAT COST BREAKDOWN.
HERE'S WHAT SAWS HAS GIVEN TO THE CAPITAL COST PROGRAM.
AND, YOU KNOW, I WOULD THINK, YOU KNOW, BECAUSE HOW MANY PEOPLE DOES SAWS HAVE? WHAT'S THEIR MANPOWER AT SAWS?
>> I DON'T REMEMBER THE NUMBER OF CREWS THAT THEY HAVE BUT, AGAIN, THE NUMBER OF RADIOS, JOHN --
WE HAVE 11,000 SUBSCRIBERS ON THE SYSTEM TODAY.
AND IN TERMS OF USAGE, OUR POLICE AND FIRE, OBVIOUSLY, ARE ON THEM ALL THE TIME.
THAT'S PART OF THEIR DAILY FUNCTION.
FOR SAWS AND CPS IT'S NOT NEAR AS FREQUENT OR AS CONSTANT.
WHEN WE PUT THE INTERLOCAL AGREEMENT AND LOOKED AT NEGOTIATING THE INITIAL 56%, 22% SPLIT WITH THE COUNTY AND CPS, THE STAFFS WORKED THROUGH ALL AF THAT.
HOW MUCH VOLUME TIME DO YOU SPEND ON -- WHICH INCLUDED THE SAWS' TALK TIME AS WELL.
WE LOOKED AT GUESSING OR ESTIMATING WHAT OUR CAPITAL COSTS WOULD LOOK LIKE.
WE HAVE BEEN ABLE TO, IN MY OPINION, DO BETTER BECAUSE WE HAVE BEEN ABLE TO LEVERAGE INFRASTRUCTURE THAT'S ALREADY OUT THERE.
BEING ABLE TO INSTALL THE ANTENNAS ON SAWS' WATER TANKS AS OPPOSED TO BUILDING NOW TOWERS IS A BENEFIT TO THE COMMUNITY OVERALL.
WE COULD BREAK IT DOWN FOR YOU.
WE'RE AT A PRETTY GOOD PLACE FROM AN EQUITY STANDPOINT.
>> PERRY: AND THEN THIS WILL INCLUDE ALL CITY FUNCTIONS, RIGHT? THIS IS THE -- THIS IS IT.
WE'RE NOT GOING TO HAVE ANOTHER SYSTEM OUT THERE FOR THE ENTIRE CITY.
>> RIGHT NOW FROM A PUBLIC SAFETY RADIO SYSTEM, TCI, AVIATION ARE INCLUDED IN THIS AS WELL.
THIS IS OUR PRIMARY PUBLIC SAFETY RADIO SYSTEM.
THAT'S NOT ANSWERING MY QUESTION.
>> PERRY: ALL CITY FUNCTIONS WILL BE UNDER THIS RADIO SYSTEM.
>> I DON'T KNOW OF ANY OTHER RADIO SYSTEMS BUT THIS.
>> THIS IS OUR REGIONAL RADIO SYSTEM.
WE HAVE NO PLANS TO BUILD ANY OTHER TYPE OF RADIO SYSTEM.
WHETHER WE'RE TALKING ABOUT THE ALAMODOME, TCI, DSD, WHATEVER DEPARTMENT, THESE RADIOS WILL BE GOING TO THIS SYSTEM.
>> PERRY: WE'RE NOT GOING TO HAVE ANY SIDE RADIO SYSTEMS WITH ANY FUNCTION?
WE'RE MAKING A SIGNIFICANT INVESTMENT IN THIS SYSTEM.
AS CRAIG TALKED ABOUT ALL THE ADDITIONAL FUNCTIONALITY, COVERAGE WE GET.
YOU KNOW, ANY NEEDS THAT WE HAVE FROM A CITY FORCE PERSPECTIVE, THEY'LL BE USING THIS RADIO SYSTEM.
AND COUNCILWOMAN VIAGRAN ALREADY TALKED ABOUT THE DESIGN OF THE RADIOS BETWEEN FIRE AND THE POLICE.
I KNOW THAT THE FIRE WANTED A LITTLE BIT MORE SUBSTANTIAL OR SOMETHING RADIO, VERSUS THE POLICE.
ARE WE ON TRACK WITH BOTH RADIOS? OR HOW IS THAT WORKING?
>> WE ARE ON TRACK WITH THE DIFFERENT RADIO IS THE FIRE RADIO.
SO POLICE, IT IS MY UNDERSTANDING, THEY'RE TAKING THE RADIO THAT WAS OFFERED.
BUT OUR RADIO NEEDED TO HAVE THE BULKED UP AS FAR AS HEAT, YOU KNOW, IT WILL BE A LITTLE BIT TOUGHER BECAUSE OF THE WAY WE HANDLE THINGS.
>> AND WE HAVE 94% OF OUR RADIOS, OUT OF 1600 ALREADY DISTRIBUTED.
[01:05:08]
I'M HAVING ADDITIONAL ISSUES WITH THIS ADDITIONAL WORK AND THE CHANGE ORDERS HERE.HOW COULD WE MISS SOME OF THIS STUFF LIKE GENERATORS FOR THE SITES? YOU KNOW, THIS IS A SIGNIFICANT CHANGE ORDER HERE THAT YOU'RE GOING TO BE COMING UP WITH.
I'D LIKE THE DETAIL ON THAT AND HOW WE MISSED SOME OF THESE THINGS.
BECAUSE THAT'S NOT A LITTLE CHUNK OF MONEY THERE.
I WILL OFFER THE GENERATORS DO EXIST AT SOME SITES.
AND AS THE TEAM WENT IN TO DO THEIR REMEDIATION ASSESSMENTS AFTER THE CONTRACT, THERE WERE DECISIONS MADE BY THE JOC ABOUT THE LIFE OF THE EXISTING GENERATORS AND WHETHER THEY NEEDED TO BE REPLACED ON A 15-YEAR CYCLE OR NOT, OR WHETHER WE KEEP AN EXISTING GENERATOR FOR FIVE AND REPLACE IT LATER, AS AN EXAMPLE.
SEVERAL GENERATORS WERE DEEMED AT THE BEGINNING OF THE PROJECT TO PUT THEM ON THIS LIST TO BE DONE NOW.
SHELTERS, WHEN WE WENT IN AND DAILEY WELLS AS THE VENDOR HELPED US WITH SITE ASSESSMENTS WOULD MAKE DETERMINATIONS ABOUT SIZE OF SHELTERS OR DIFFERENT SHELTERS FOR THE CONTRACT PERIOD.
SO THOSE BECAME ADDITIONAL THINGS.
AIR-CONDITIONING AND SHELTERS NEED TO BE REPLACED.
AT THE END OF THE DAY WE'RE STILL TALKING ABOUT 3% TO 4% CHANGE ORDERS ON A TOTAL PROJECT, BUT I UNDERSTAND THE $3 MILLION CHANGE OVERALL.
>> PERRY: I'M STILL PERPLEXED, THOUGH, THAT SOME OF THAT WASN'T PICKED UP IN THE RFP RIGHT OFF THE BAT AND NOT PICKED UP UNTIL THE SITE VISIT AT THE TAIL END AFTER THE AWARD.
>> WELL, AGAIN, I THINK THE JOC HAS BEEN LOOKING AT THOSE FROM A TECHNICAL PERSPECTIVE.
SO THINGS LIKE GENERATORS, AGAIN, WE HAVE GENERATORS AT THE SITES BUT SOME OF THEM ARE GOING TO REACH END OF LIFE PROBABLY WITHIN THE NEXT THREE OR FOUR YEARS.
SO THE DECISION IS DO WE WAIT OR DO WE REPLACE THEM NOW? I THINK THE JOC FEELS STRONGLY THAT WE SHOULD BE REPLACING THEM NOW.
THE FIBER THAT I MENTIONED -- I WANTED TO ADD ON THE FIBER SIDE, WE HAD ALWAYS BEEN LOOKING AT ADDING FIBER CONNECTIVITY TO THE TOWERS, EVEN OUR EXISTING SYSTEM.
WE WERE LOOKING AT THAT A COUPLE OF YEARS AGO.
WE FOUND WE HAD AN OPPORTUNITY WITH OUR PARTNER, CPS HERE, TO INSTALL FIBER USING THEIR BACKBONE, WHICH GIVES US ADDITIONAL REDUNDANCY.
WE WERE ALWAYS GOING TO DO IT.
SENSE AND IT'S GOING TO GIVE US MORE REDUNDANCY, MORE RESILIENCY AROUND THE TOWER SITES THEMSELVES SO WE HAVE A MUCH GREATER PROBABILITY OF SOME KIND OF FIBER CUT OR SOME KIND OF ISSUE WITH A PARTICULAR TOWER, THAT CPS INFRASTRUCTURE GIVES US A BETTER OPTION.
SO THAT WAS SOMETHING WE WERE ALSO LOOKING AT.
WE WOULD HAVE EITHER SPENT IT OUTSIDE OF THIS PROJECT OR PART OF THIS PROJECT.
>> PERRY: AND I UNDERSTAND THAT.
I'M JUST SAYING WHY IT WASN'T CAPTURED RIGHT UP FRONT IN THE RFP PROCESS INSTEAD OF WAITING UNTIL AFTER THE AWARD TO PICK IT UP, YOU KNOW, AFTER THE AWARD OF THE CONTRACT.
>> WE MADE THAT -- WE ACTUALLY JUST FINALIZED THAT NEGOTIATION WITH CPS, LIKE DECEMBER TIME-FRAME.
SO WE WERE LOOKING AT DIFFERENT OPTIONS.
WE WERE LOOKING AT SEVERAL OTHER OPTIONS.
THEY HAVE PRESENTED US WITH AN OPTION THAT MAKES A LOT OF SENSE FOR ALL OF THE PARTNERS.
WE JUST MADE THAT DECISION WITHIN THE PAST TWO MONTHS.
>> AND A POINT OF CLARITY, IF I MAY.
THE COLUMN ON THE RIGHT, WHERE IT SAYS LEASES AND FIBER HAVE NOTHING TO DO WITH THE CONTRACT WITH DAILEY WELLS.
THAT IS WORK FOR US TO PERFORM.
THAT WAS NEVER IN ANY SCOPE OF WORK OR ASSESSMENT.
THIS COLUMN IN THE CENTER, THE GENERATORS, THE 1.6, IS STUFF WE LEARNED AFTER THAT WAS PUT IN PLACE THAT IS NOT IN THE SCOPE.
WENT TO DO THE SITE ASSESSMENT AFTERWARD WITH THE JOC, SIGNIFICANT MONEY TO UPGRADE THE TOWER, WOULD BE ANOTHER EXAMPLE.
AND WHICH -- I DIDN'T MARK DOWN WHICH SLIDE ABOUT THE AUTHORITY.
SHERYL, WHAT IS OUR NORMAL THRESHOLD FOR APPROVALS? EVEN FOR ANY DIVISION CHIEF HERE WITHIN THE CITY.
OR EVEN YOURSELF, THE APPROVAL AUTHORITIES THAT ARE GRANTED BY THE COUNCIL.
>> SCULLEY: GENERALLY SPEAKING, IT'S 50,000.
SO WE CAN ENTER INTO CONTRACTS IF WE HAVE A SMALL AMOUNT OF WORK THAT NEEDS TO BE DONE, A PROFESSIONAL SERVICE CONTRACT.
WE CAN DO UP TO $50,000, GENERALLY SPEAKING.
>> SCULLEY: THIS AUTHORIZATION, THOUGH, WAS A PART OF THE COUNCIL APPROVAL IN THE ORIGINAL CONTRACT.
[01:10:02]
>> SCULLEY: AND THE ILA THE COUNCIL APPROVED.
YOU HAVE APPROVED THIS PREVIOUSLY.
I MUST HAVE MISSED THAT PORTION IN THIS THING, BECAUSE I WOULD HAVE -- I WOULD HAVE A HARD TIME.
AND I AGREE WITH COUNCILWOMAN VIAGRAN, ALSO.
YOU KNOW, IF I HAD MY DRUTHERS NOW I WOULD SAY NO WAY.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.
THIS IS EXACTLY WHAT I WANTED WHEN I ASKED YOU GUYS TO DO THIS.
I WAS WONDERING, YOU KNOW, WHAT WOULD HAPPEN TO THE BIG SPEND THAT, YOU KNOW, WE APPROVED A LONG TIME AGO.
AND IT SEEMS TO ME LIKE YOU GUYS ARE DOING EXACTLY WHAT YOU PROMISED US YOU WOULD DO WAY BACK WHEN.
MY ONLY REQUEST IS THAT, YOU KNOW, AS WE MOVE FORWARD DOWN THE ROAD AND YOU'VE ACTUALLY GOT THIS THING UP AND RUNNING AND READY TO TEST OUT, I'M A BELIEVER IN GO AND SEE.
AND SO I WOULDN'T MIND GOING OUT AND SEEING HOW THESE THINGS WORK.
THAT WAY I CAN REPORT BACK AND IT'S ACTUALLY THERE AND IT'S FANTASTIC.
>> I THINK BURN-IN TIME WE CAN INVITE PEOPLE FOR RIDE ALONGS.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PELAEZ.
>> SCULLEY: I JUST WANTED TO ADD TO WHAT I SAID.
SO THAT WE'RE CLEAR, WHAT THE COUNCIL APPROVED PREVIOUSLY ON THE UP TO $500,000 IS WITHIN THE BUDGET THAT YOU ALL APPROVED.
SO IT'S WITHIN THAT TOTAL AMOUNT.
AND THE BUDGETS THAT WERE SET ASIDE FOR CONTINGENCY.
SO IT'S NOTHING OVER AND ABOVE THE TOTAL AMOUNT THAT YOU APPROVED.
AND IF THERE WERE TO BE SOMETHING THAT WAS IN EXCESS, THAT WOULD HAVE TO COME BACK TO CITY COUNCIL.
>> MAYOR NIRENBERG: WE HAVE TO GO BACK TO ALL THREE ENTITIES, TOO.
BECAUSE WE ALL SIGNED UP ON THE SAME ILA.
THE ILA IS FOR ALL THREE PARTIES.
THAT'S WHY WE HAVE THIS JOINT OPERATING COMMITTEE.
THEY MAKE THE DECISIONS ON WHAT TO BE DONE.
I THINK MY FELLOW COUNCILMEN ASKED THE QUESTIONS I HAD.
WHAT KIND OF INTEROPERABILITY IS THERE? WILL THEY BE SHARING THIS RADIO SYSTEM?
>> SOMEONE ELSE CAN TAKE THAT ONE.
RIGHT NOW THERE ARE 56 EXTERNAL AGENCIES THAT ARE PART OF THE RADIO SYSTEM.
SO THE INTENT WOULD BE THAT EACH OF THOSE EXTERNAL AGENCIES WOULD JOIN ON TO THE NEW SYSTEM ITSELF.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.
[Executive Session]
GREAT JOB.THE TIME IS NOW 3:27 P.M. ON THIS 20TH DAY OF FEBRUARY, 2019.
PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 551 IN THE TEXAS GOVERNMENT CODE, TEXAS OPEN MEETINGS ACT, THE CITY COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.087, ECONOMIC DEVELOPMENT.
THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.072, REAL PROPERTY.
LEGAL ISSUES RELATED TO THE COLLECTIVE BARGAINING PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071, CONSULTATION WITH ATTORNEY.
LITIGATION MATTERS INVOLVING THE CITY, PENDING OR CONTEMPLATED LITIGATION AND/OR SETTLEMENT OFFERS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071, CONSULTATION WITH ATTORNEY.
AND LEGAL ISSUES RELATED TO THE CITY POLICY CONCERNING POLITICAL ACTIVITY AND CITY RESOURCES PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5
* This transcript was compiled from uncorrected Closed Captioning.