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          >> MAYOR NIRENBERG: GOOD AFTERNOON, EVERYBODY. IF YOU CAN PLEASE TAKE YOUR SEATS, WE'LL CALL OUR MEETING TO ORDER AT 2:03 P.M. ON THE FIRST DAY OF NOVEMBER, 2023. MADAM CLERK, COULD YOU READ THE ROLL? 
          >> CLERK: 
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RIGHT. GOOD AFTERNOON, EVERYBODY. 
          THE TIME IS 2:04 P.M. WE HAVE A COUPLE ITEMS ON OUR B SESSION AGENDA TODAY, BOTH RELATED TO CPS SO WE'LL TAKE THEM ALL AT ONCE AND HAVE ONE DISCUSSION. ERIK, DO YOU WANT ME TO TURN IT OVER TO YOU TO 
          INTRODUCE OUR GUESTS. >> WALSH: YEAH, PLEASE. THANK YOU, MAYOR. 
          GOOD AFTERNOON, MAYOR AND COUNCIL. TWO ITEMS ON TODAY'S B SESSION. WE DO HAVE THEM TOGETHER. 
          THEY ARE -- THE FIRST ONE IS GOING TO BE -- BEN IS GOING TO PRESENT A POLICY RECOMMENDATION THAT WENT TO GOVERNANCE ABOUT TWO WEEKS AGO REGARDING AN ORIGINAL CCR WE RECEIVED FROM COUNCILWOMAN HAVRDA TOWARDS THE END OF BUDGET LAST YEAR. THAT POLICY CONVERSATION AT GOVERNANCE RESULTED IN GOVERNANCE APPROVING AN ALTERNATIVE RECOMMENDATION THAT FROM GOVERNANCE WAS TO GO TO THE FULL COUNCIL WHEN WE TALK ABOUT ALL OUR OTHER FINANCIAL POLICIES IN APRIL. I KNOW THERE WERE SEVERAL CONVERSATIONS WITH A NUMBER OF COUNCILMEMBERS ABOUT WANTING TO HAVE A CONVERSATION SOONER ABOUT THAT FINANCIAL POLICY. IT'S ALL PROSPECTIVELY. 
          IT DOESN'T AFFECT OUR BUDGET THIS YEAR, AND SO THAT'S PART OF TODAY IS TO ALLOW THE COUNCIL NOW TO HAVE A CONVERSATION ABOUT THAT FINANCIAL POLICY. SO BEN IS GOING TO WALK THROUGH THE ORIGINAL CCR, WHAT THE ALTERNATIVE WAS, AND WE WORKED WITH COUNCILWOMAN HAVRDA ON THE ALTERNATIVE POLICY THAT WE BROUGHT TO GOVERNANCE. 
          AND THEN PART TWO OF THE PRESENTATION TODAY IS CPS, I'D HAD A REQUEST FROM A COUPLE COUNCILMEMBERS ABOUT UNDERSTANDING THE GRANT STRATEGY UPDATE THAT CPS EMPLOYS. THEY REN RECENTLY WERE MADE AWARE OF A GRANT AWARD OF $30 MILLION THAT MATCHES A $30 MILLION INVESTMENT THAT CPS HAS ON SOME RESILIENCY PROJECTS, AND THEY'LL TALK ABOUT WHAT THEIR PLAN IS AND WHERE THOSE IMPROVEMENTS ARE ANTICIPATED. AND THEN GENERALLY, THEY'LL ALSO TALK ABOUT THEIR STRATEGY AS THEY PURSUE OTHER IRA DEPARTMENT OF ENERGY GRANT OPPORTUNITIES. I WILL ADD -- AND THEY'LL PROBABLY ADD THIS AS PART OF THEIR CONVERSATION, WE DO CLOSELY COORDINATE WITH THEM IN TERMS OF BIL AND THE INFLATION REDUCTION ACT. WE HAVE, AS A CITY, SUPPORTED THEM AS THEY'RE PURSUING THE FAST CHARGER GRANT, AND WE STILL -- THERE ARE A NUMBER OF PUBLIC ENTITIES THAT TALK MONTHLY TO MAKE SURE THAT WE'RE COORDINATING AND NOT STEPPING ON EACH OTHER'S SHOULDERS. 
          WE'VE CERTAINLY BEEN PART OF THAT EFFORT, AND HAVE GIVEN THE COUNCIL UPDATES AS WE'VE GIVEN -- AS WE'VE HAD THOSE B SESSIONS ON THE REECE FUNDS. SO THOSE ARE THE TWO ASPECTS OF THE 
          PRESENTATIONS TODAY  AND WE'LL START OFF WITH BEN. >> GORZELL: SO GOOD AFTERNOON, MAYOR AND COUNCILMEMBERS. AS THE CITY MANAGER MENTIONED, I'LL BE COVERING SOME POLICY DISCUSSION RELATED TO A CCR THAT WE RECEIVED. FOR THOSE OF YOU ON THE GOVERNANCE COMMITTEE, YOU GET THE FUN OF LISTENING TO THIS PRESENTATION TWO TIMES IN TWO WEEKS, BUT IT'S GOING TO BE VERY SIMILAR TO WHAT YOU HEARD A COUPLE OF WEEKS AGO, BUT I THINK THERE'S SOME IMPORTANT INFORMATION HERE THAT WE WANT TO COVER WITH YOU. SO I'M GOING TO START WITH A LITTLE BIT OF BACKGROUND INFORMATION FOR CONTEXT, AND THEN I'M GOING TO TALK ABOUT THE ORIGINAL CCR THAT WAS FILED, AND THEN THE ALTERNATIVE RECOMMENDATION THAT WAS PRESENTED -- THAT WAS DEVELOPED AND PRESENTED TO THE GOVERNANCE COMMITTEE AND THAT WAS SUPPORTED BY THE GOVERNANCE COMMITTEE A COUPLE OF WEEKS AGO. SO LET ME START WITH JUST A LITTLE BIT OF BACKGROUND AGAIN, JUST TO GET EVERYBODY ON THE SAME PAGE HERE. SO THE CITY HAS OWNED CPS ENERGY SINCE 1942. 
          UNDER OUR OWNERSHIP MODEL, THE COMMUNITY AND THE GREATER SAN ANTONIO AREA HAVE BENEFITED TREMENDOUSLY. THOSE BENEFITS HAVE 
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INCLUDED HAVING AN ELECTRIC AND GAS UTILITY THAT HAS A STRONG TRACK RECORD OF STRONG ENERGY RELIABILITY, ALONG WITH COMPETITIVE RATES, AND THEN WE'RE COUPLING THAT WITH BENEFITS TO THE OWNER, WHICH INCLUDES A -- UP TO 14% TRANSFER TO THE CITY'S GENERAL FUND TO FUND BASIC CITY SERVICES. THOSE CITY SERVICES GO BACK TO THE CITIZENS OF SAN ANTONIO, WHO IN THIS CASE, ARE THE OWNERS OF CPS ENERGY. 
          LET ME TAKE JUST A MINUTE TO TALK ABOUT THAT 14% TRANSFER. 
          SO UNDER THE CPS INDENTURE, THE CITY CAN RECEIVE UP TO 14% OF THEIR GROSS REVENUES AS A PAYMENT BACK TO THE CITY. 
          THAT PAYMENT IS COMPARABLE TO WHAT YOU WOULD SEE FROM A PRIVATE UTILITY FROM A COUPLE OF DIFFERENT PERSPECTIVES. ONE IS IT REPRESENTS COMPENSATION FOR USE OF THE PUBLIC RIGHT OF WAY, SO THEIR FACILITIES, THEIR WIRES, THEIR POLES ARE IN THE CITY'S PUBLIC RIGHT OF WAY. 
          IF THEY WERE A PRIVATE UTILITY, THEY WOULD BE PAYING PROPERTY TAXES, SO SOME OF THIS COULD REPRESENT A PAYMENT IN LIEU OF TAXES. 
          AND THEN THIRDLY,OU IT REPRESENTS A RETURN TO SHARE HOLDERS. 
          AND I MENTIONED SHAREHOLDERS IN THIS CASE ARE THE CITIZENS OF SAN ANTONIO. SO RATHER THAN PROFITS BEING GENERATED TO A PRIVATE INVESTOR, THOSE RETURNS GO BACK TO THE CITY, TO THE GENERAL FUND, TO FUND BASIC CITY SERVICES. SO IT HAS BEEN A VERY BENEFICIAL MODEL FOR NOT ONLY OUR COMMUNITY BUT FOR THE GREATER SAN ANTONIO AREA. SWITCHING A LITTLE BIT TO THE ORIGINAL -- AUDIO] -- THIS IS THE ORIGINAL KRMPLET CR THAT WAS FILED. 
          I'M GOING TO SPEND A LITTLE BIT OF TIME TALKING ABOUT THAT. 
          SO UNDER THE ORIGINAL CCR, IT PROPOSED REDUCING THE CITY'S 14% RATE THAT IS CURRENTLY IN PLACE TODAY BY EITHER TWO OR 3 PERCENT DOWN TO EITHER 11 OR 12% OF GROSS REVENUES. THOSE DOLLARS WOULD THEN BE RETURNED TO CPS ENERGY TO IMPROVE THEIR RESILIENCY AND RELIABILITY AND TO FOCUS ON TRYING TO STAVE OFF OR ELIMINATE RATE INCREASES OVER THE NEXT FIVE YEARS. LET ME SPEND A LITTLE BIT OF TIME TALKING ABOUT A RATE INCREASE. SO WHEN CPS ENERGY APPROACHES US ON A RATE INCREASE, WHAT THEY'RE LOOKING FOR IS RECURRING REVENUE. SO IF YOU THINK ABOUT THEIR OPERATIONS, IT'S GOING TO BE DRIVEN BY EITHER INCREASES IN OPERATIONS AND MAINTENANCE COST, THE SIZE OF THEIR CAPITAL PROGRAM, YOU KNOW, THEY'RE GOING TO DEBT FINANCE PART OF THAT CAPITAL PROGRAM. 
          SO THEY'VE GOT RECURRING COSTS THAT ARE GOING UP, SO THEY'RE LOOKING FOR RECURRING REVENUE STREAMS TO SUPPORT THOSE INCREASED COSTS. 
          THAT'S WHAT ENDS UP IN A BUSINESS CASE TO SUPPORT THAT RATE INCREASE. 
          SO IF WE WERE TO LOOK AT THIS KIND OF SCENARIO WHERE WE'RE REDUCING CITY PAYMENT, IN ORDER TO TRY TO ADDRESS RATE PRESSURES OR RATE INCREASE REQUIREMENTS, IT WOULD NEED TO BE A PERMANENT REDUCTION, SOMETHING THAT WOULD BE IN PLACE FOR A LONG PERIOD OF TIME, NOT A SHORT PERIOD OF TIME. 
          A REDUCTION OF 2% DOWN TO 12% WOULD EQUAL ABOUT $60 MILLION IN RECURRING REVENUE, 3% IS EQUIVALENT TO ABOUT $90 MILLION. IN ORDER FOR OUR FINANCIAL POSITION TO STAY BALANCED, WE WOULD NEED TO REDUCE OUR EXPENSES, RECURRING EXPENSES AND SERVICES, BY AN EQUIVALENT AMOUNT, EITHER 60 OR $90 MILLION. AS WE'VE COME FORWARD OR THEY COME FORWARD WITH A RATE CASE THIS FALL, WE'LL BE STARTING THAT PROCESS NEXT WEEK, YOU'LL SEE A RATE FORECAST IN THERE, SO THERE'S MORE THAN ONE RATE INCREASE. THERE'S A CURRENT ONE, BUT THERE ARE ADDITIONAL RATE INCREASES BEYOND THAT, TO SUPPORT THE REQUIREMENTS OF THE UTILITY. A LOT OF THAT BEING DRIVEN BY A LARGE CAPITAL PLAN THAT THEY'RE GOING TO BE UNDERTAKING, AS WELL AS INCREASE OPERATIONS AND MAINTENANCE COST. SO EVEN IF WE DID THIS, THE CHALLENGE IS THAT THERE'S MORE THAN ONE RATE CASE -- RATE INCREASE IN THAT RATE FORECAST, AND WE WOULD HAVE TO DO IT BY CUTTING SIGNIFICANTLY THE GENERAL FUND EXPENSES AND SERVICES IN ORDER TO TRY TO ACCOMPLISH THAT. BUT IT WOULD NOT ELIMINATE THE NEED FOR RATE INCREASES OVER THE NEXT FIVE YEARS. Y'ALL HAVE SEEN THIS SLIDE, OR THIS GRAPH MANY TIMES. TYPICALLY DONE AS PART OF THE PROPOSED BUDGET. IT'S INCLUDED IN THE ADOPTED BUDGET. 
          WE CALL IT THE SPINNING WHEEL. IT HAS THE -- OUR MAJOR REVENUE SOURCES ON THE OUTSIDE OF THE CIRCLE, SO SALES TAX, THIS CITY PAYMENT FROM CPS ENERGY, AND THEN PROPERTY TAXES, AND THEN WE'VE GOT SOME OTHER SOURCES. AND THE INSIDE OF THAT WHEEL, WE HAVE OUR SERVICES AND KIND OF BROKEN DOWN BY DEPARTMENT AND CATEGORIES THERE. 
          SO YOU CAN SEE THAT REFLECTED THERE. BEFORE I GO BACK TO THE GRAPH AND SPEND A LITTLE BIT OF TIME TALKING ABOUT THAT, A COUPLE OF POINTS. WHEN WE TALK ABOUT SERVICES, THERE ARE 8,537 POSITIONS FUNDED THIS YEAR IN THE GENERAL FUND. 
          OF THAT, ABOUT A LITTLE OVER 4400 ARE PUBLIC SAFETY POSITIONS, OR 
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ABOUT 52% OF THE PERSONNEL IN THE GENERAL FUND ARE PUBLIC SAFETY, EITHER POLICE OR FIRE RELATED SERVICES.  AND SO WHEN WE TALK ABOUT DELIVERING SERVICES, IT'S -- IT'S DONE OBVIOUSLY BY OUR GREAT TEAM OF EMPLOYEES THAT ARE OUT THERE DELIVERING THOSE DAY IN AND DAY OUT. SO WHEN WE LOOK AT THIS LEVEL OF EXPENDITURE, IT'S UNDERPINNED BY THE EMPLOYEES THAT ARE DOING THAT WORK. 
          OF THE TOTAL $1.6 BILLION BUDGET IN 2024, $1.1 BILLION IS FOR PERSONNEL AND BENEFITS. SO IF I TAKE A SECOND AND JUST GO AROUND THE WHEEL ON THE INSIDE AND TALK ABOUT SOME OF THE CHALLENGES WHEN WE START TALKING ABOUT TRYING TO CUT 60 OR $90 MILLION IN RECURRING EXPENSES, IF YOU ALL WERE TO GIVE US DIRECTION AND SAY, WE NEED TO MAKE THAT REDUCTION, BUT WE DON'T WANT TO REDUCE POLICE AND FIRE, THAT'S 967.1 MILLION, SO 60.5% OF THE BUDGET, IF WE SAID WE DON'T WANT TO TOUCH PUBLIC WORKS OR PARKS, YOU'RE LEFT WITH $440 MILLION MADE UP THERE OF ALL THE DEPARTMENTS LISTED ON THE RIGHT-HAND OF THAT SLIDE, 60 MILLION CUT TO THOSE DEPARTMENTS IS ABOUT 13.6%, 90 MILLION WOULD BE A LITTLE OVER 20% CUT TO THOSE DEPARTMENTS. THOSE DEPARTMENTS ON THE FAR RIGHT, THOUGH, ALSO INCLUDE AREAS WHERE YOU'VE WANTED TO INVEST MORE OVER THE LAST FEW YEARS. IT INCLUDES DEPARTMENTS LIKE ANIMAL CARE SERVICES, OUR OUTSIDE AGENCIES, HUMAN SERVICES, CODE ENFORCEMENT. SO YOU CAN SEE, AS YOU START GOING DOWN THE LIST, THE PIE THAT'S ELIGIBLE TO MAKE THAT KIND OF REDUCTION BECOMES MORE AND MORE CHALLENGING AND IT'S GOING TO BE A MUCH MORE SIGNIFICANT COMPONENT. ALL THAT TO SAY THAT AT THE END OF THE DAY, IF WE WERE TO WANT TO MOVE FORWARD WITH THIS KIND OF PROPOSAL, WE WOULD WANT TO HAVE A CONVERSATION WITH YOU ALL IN TERMS OF HOW DO WE CUT DEPARTMENTS OR PROGRAMS? WE WOULD HAVE TO ELIMINATE SOMETHING OF THAT SCALE IN ORDER TO ACCOMPLISH THIS. IT COULDN'T BE LIKE AN ACROSS THE BOARD OR IT COULDN'T BE JUST FROM A SMALL AREA OF DEPARTMENTS, WE WOULD HAVE DIFFICULTY CONTINUING TO DELIVER SERVICES AND BEING ABLE TO OPERATE. SO I'M GOING TO SHIFT GEARS NOW TO THE ALTERNATIVE THAT WAS DEVELOPED IN COLLABORATION WITH COUNCILWOMAN CABELLO HAVRDA WHO SPONSORED THE ORIGINAL CCR, AND THIS IS WHAT WAS PRESENTED TO GOVERNANCE. 
          AND WHAT WE TRIED TO LOOK AT WAS WHAT WERE THE OBJECTIVES OF THE CCR AND WHAT WERE WE TRYING TO ACCOMPLISH THERE AND HOW COULD WE MAYBE COME UP WITH ANOTHER ALTERNATIVE OR ANOTHER APPROACH? ONE WAS TO SUPPORT THE BUSINESS REQUIREMENTS OF CPS ENERGY TO INCLUDE RESILIENCY AND RELIABILITY PROJECTS. ANOTHER WAS -- PAYMENT FROM CPS ENERGY AND  TO KEY PROJECTS WITHOUT SIGNIFICANTLY IMPACTING CITY SERVICES, AND A THIRD WAS HOW COULD WE POTENTIALLY LOWER THE AMOUNT OF FUTURE RATE INCREASES. SO AS WE LOOKED AT THOSE AND EXPLORED SOME OPTIONS, WE CAME UP WITH THIS ALTERNATIVE. 
          THIS ALTERNATIVE IS TO AMEND OUR FINANCIAL POLICY RELATED TO CPS ENERGY, IT WAS SOMETHING THAT WE ALL DISCUSSED WITH YOU BACK IN THE SPRING, THIS IS A NEW FINANCIAL POLICY FOR US, AND THAT WE WOULD AMEND IT TO CAPTURE SOME OF THE OBJECTIVES THAT WERE IN THE ORIGINAL CCR. 
          SO THIS RECOMMENDATION WAS DEVELOPED AND PRESENTED TO THE GOVERNANCE COMMITTEE, WHICH THEY DID SUPPORT. IT IS A FINANCIAL POLICY, SO WE WOULD BE TYPICALLY TALKING ABOUT THAT IN OUR GOAL-SETTING SESSION, WHICH THE NEXT ONE WOULD BE IN THE SPRING. AND THEN YOU ADOPT OUR FINANCIAL POLICIES WITH EACH BUDGET EVERY YEAR. SO JUST AS A REMINDER, OUR CURRENT FINANCIAL POLICY THAT WE PUT IN PLACE, THIS WAS PRESENTED TO YOU BACK IN APRIL, ADOPTED WITH THE FY '24 BUDGET. 
          YOU KNOW, IT REALLY TALKS ABOUT LOOKING AT THAT RETURN FROM CPS AND TRYING TO FIGURE OUT IF THERE'S SOME COMPONENTS OF THAT THAT ARE UNUSUAL, OUT OF THE ORDINARY, ONE-TIME IN NATURE, AND THAT WE HANDLE THOSE DIFFERENTLY. IN PRACTICE, WHAT WE SAID HOW WE WOULD IMPLEMENT THIS FINANCIAL POLICY IS WE SAID, IF THE ACTUAL CITY PAYMENT FROM CPS ENERGY IS COMING IN MORE THAN 10% ABOVE OUR ADOPTED BUDGET FOR THAT LINE ITEM, WE WOULD TAKE THE AMOUNT THAT'S OVER THE 10%, SET THAT ASIDE FOR FURTHER INPUT FROM THE COUNCIL. THIS POLICY, AS YOU RECALL, CAME OUT OF FY '22 WHERE WE SAW A VERY LARGE PAYMENT COME IN FROM CPS, A LOT OF THAT OVER THE SUMMER OF 2022, AND REALLY WAS MEANT TO ALLOW THE COUNCIL TO HAVE INPUT BEFORE WE MADE A STAFF RECOMMENDATION ON WHAT TO DO WITH THOSE DOLLARS. THIS WENT A LITTLE BIT FURTHER AND FORMALIZED THAT AND SAID WHATEVER THAT AMOUNT IS, IF IT'S 
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ABOVE 10%, WE WON'T MAKE A RECOMMENDATION UNTIL WE HAVE A CONVERSATION WITH YOU ALL AND GET YOUR INPUT. THAT HAPPENED THIS YEAR, FY '23, RIGHT BEFORE WE ADOPTED THE BUDGET. SO WE UPDATED YOU -- I DON'T REMEMBER THE DATE, BUT IT WAS THE TUESDAY BEFORE WE ADOPTED THE BUDGET. WE TOLD YOU WHAT WE HAD AVAILABLE IN TERMS OF ADDITIONAL REVENUES, AND WE ACTUALLY GOT YOUR INPUT DURING THAT SESSION AND THE SESSION THE NEXT DAY, AS YOU FORMULATED AMENDMENTS AND THEN THOSE FUNDS WERE ALLOCATED. SO THAT MEANT THE OTHER OPTION WAS WE COULD HAVE PARKED THE DOLLARS AND HAD A B SESSION IN OCTOBER. 
          EITHER ONE OF THOSE WOULD HAVE COMPLIED WITH THE POLICY, BUT THE WHOLE PREMISE OF IT, AGAIN, WAS TO GET YOUR INPUT BEFORE WE MADE RECOMMENDATIONS. 
          THE POLICY IN TERMS OF WHY IT'S SET AT THAT 10% IS IMPORTANT BECAUSE WE KNOW THAT OUR PAYMENT FROM CPS FLUBLGHT WAITS. WE'VE SHOWN YOU THAT BEFORE. IT CAN MOVE A LOT FROM YEAR TO YEAR, IT CAN MOVE A LOT FROM MONTH TO MONTH, AND IT CAN CHANGE ON US PRETTY SIGNIFICANTLY. BASED ON THE LEVEL OF RESERVES WE CARRY, WE CAN'T BE REAL AGGRESSIVE WITH THAT LINE ITEM, KNOWING THAT IT CAN HAVE A PRETTY SIGNIFICANT IMPACT ON OUR BUDGET. SO WE'RE GOING TO BE MODERATELY CONSERVATIVE. WE'VE GOT A TWO-YEAR BUDGET PLAN, AND REALLY WHAT WE'RE TRYING TO DO -- AND I USED THIS ANALOGY BEFORE -- IT'S ALMOST LIKE WE'RE BUILDING A ROAD IN FRONT OF US. 
          THE ROAD IS OUR APPROPRIATIONS, OUR EXPENSES. 
          THE PEAKS AND VALLEYS THAT WE'RE GETTING NOT ONLY FROM CPS, BUT IT COULD HAPPEN WITH SALES TAX AND OTHER THINGS, WE'RE TRYING TO TURN THOSE PEAKS AND VALLEYS INTO BUMPS AND SMALL DIPS IN THE ROAD. 
          SO WE'RE JUST SMOOTHING IT OUT. YOU STILL GET TO SPEND IT, IT'S JUST WE'RE ALLOCATING IT OVER A COUPLE OF YEARS SO WE CAN TAKE SOME OF THOSE BIGGER PEAKS AND VALLEYS OUT OF WHAT WE'RE EXPERIENCING AND SOME OF THAT VOLATILITY. JUST TO GIVE YOU AN EXAMPLE OF HOW THE 10%, AGAIN, WORKS. SO THIS YEAR'S ADOPTED PAYMENT FROM OUR PAYMENT FROM CPS IS $421 MILLION, SO THAT MEANS THE FIRST 10% OR 42 MILLION, WOULD STAY WITHIN OUR BUDGET FOR RECUR K EXPENSES AND TO FUND RECURRING OBLIGATIONS GOING FORWARD. 
          THAT'S PART OF THAT SMOOTHING PROCESS THAT I TALKED ABOUT WE BUILT INTO THE BUDGET PROCESS. IF WE WERE TO GET ANYTHING ABOVE $42 MILLION IN 2024, THAT BECOMES THE AMOUNT THAT IS NOW OVER 10% AND WOULD BE SUBJECT TO THIS FINANCIAL POLICY. SO THE RECOMMENDED APPROACH, AND WHAT WE'RE AMENDING IN THE POLICY, SIBS , SINCE THAT WAS OUR CURRENT POLICY, WHAT WE'RE AMENDING IS SAYING THAT AMOUNT THAT COMES IN ABOVE 10%, RATHER THAN HAVING A DISCUSSION WITH YOU ALL ABOUT GETTING INPUT ON WHAT WE SHOULD DO WITH THAT OR ALLOCATE THAT, THIS SETS THAT IN PLACE AND BASICALLY SAYS THAT 80% OF WHATEVER THAT AMOUNT IS THAT WE'RE ABOVE THE 10% WOULD GO TO CPS ENERGY FOR RESILIENCY AND RELIABILITY PROJECTS, AND 20% INTO OUR REECE FUND, WHICH IS THE RESILIENCY ENERGY EFFICIENCY AND SUSTAINABILITY FUND THAT WE SET UP A COUPLE OF YEARS AGO. . 
          SO IT SIMPLY TAKES THE POLICY THAT'S IN PLACE TODAY AND SAYS, IF WE HIT THIS THRESHOLD, THIS IS HOW WE WILL ALLOCATE THE FUNDS, THIS IS HOW WE WILL UTILIZE THE FUNDS. TO GIVE YOU CONTEXT, IF WE HAD HAD THIS POLICY IN PLACE FOR THE LAST 20 YEARS WHEN YOU LOOK AT THE AMOUNTS WE CAME IN ABOVE THE ADOPTED BUDGET, THE AMOUNT THAT WAS ABOVE THE 10% WOULD BE 137.6 MILLION, THAT WOULD HAVE EXCEEDED THAT THRESHOLD OVER THE PAST 20 YEARS. OF THAT TOTAL, 61.1 MILLION WOULD HAVE BEEN FROM THE LAST TWO FISCAL YEARS. ALSO NOTE THAT THAT $61.1 MILLION THAT YOU SEE LISTED THERE FOR THE LAST TWO FISCAL YEARS INCLUDES OUR ACTUAL PAYMENT FOR SEPTEMBER. IT DID COME IN HIGHER THAN WHAT WE REESTIMATED IN THE BUDGET. IT WAS $7.5 MILLION MORE THAN WHAT WE THOUGHT WHEN WE BRIEFED YOU A COUPLE OF WEEKS AGO RIGHT BEFORE WE ADOPTED THE BUDGET. WE'LL CONTINUE TO DO MODERATELY CONSERVATIVE REVENUE PROJECTIONS. I MENTIONED THE FACT, YOU KNOW, GIVEN OUR LEVEL OF RESERVES AND THE POLICIES WE HAVE IN PLACE, WE REALLY CAN'T BE IN A POSITION OF BEING TOO AGGRESSIVE WITH THOSE -- WITH THOSE FORECASTS GOING FORWARD. YOU KNOW, WE HAVE CERTAINLY SEEN SOME MORE SIGNIFICANT SWINGS OVER THE LAST COUPLE OF YEARS. 
          THAT'S SOMETHING WE'RE OBVIOUSLY GOING TO CONTINUE TO LOOK AT CLOSELY AND, I MEAN, I CAN'T TELL YOU THAT FROM A POLICY PERSPECTIVE THAT WE'RE GOING TO SOMEHOW MAKE THIS MORE PREDICTABLE, BUT I THINK THE GOAL IS TO MAKE SURE THAT WE'RE MANAGING WHAT'S HAPPENING WITH THAT REVENUE STREAM AS IT COMES FORWARD. IN TERMS OF AMENDING THE POLICY AND SOME OF THE BENEFITS THAT WE WOULD GET FROM DOING THAT, AGAIN, WE TRIED TO FOCUS ON SOME OF THOSE MAJOR OBJECTIVES OF THE CCR. 
          I MENTIONED THOSE EARLIER, SO WE TRIED TO HIT EACH OF THOSE IN SOME FORM OR FASHION. THIS WOULD ALLOW, IF WE ARE GENERATING FUNDS 
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ABOVE 10% OF THE ADOPTED BUDGET, THAT PORTION ABOVE 10% WOULD BE OR -- REINVESTED TOWARDS THOSE CPS ENERGY PROJECTS AND SUPPORT RESILIENCY AND RELIABILITY. THAT COULD ASSIST IN LOWERING THE LEVEL OF POTENTIAL FUTURE CPS RATE INCREASES. I WANT TO MENTION, THIS POLICY IS PERSPECTIVE, SO THE NUMBERS I GAVE YOU WERE IF THAT HAD BEEN IN PLACE, BUT THIS IS A PROSPECTIVE CHANGE. SO WHEN YOU SEE THE RATE CASE  COME FORWARD FROM CPS ENERGY, THERE'S NOTHING BUILT IN RELATED TO THIS POLICY FOR THIS UPCOMING RATE CASE. WHERE IT WOULD COME INTO PLAY IS IF WE GENERATE DOLLARS ABOVE 10% OVER THE NEXT COUPLE OF FISCAL YEARS, THAT WOULD BE TAKEN IN RELATION TO THE NEXT RATE. 
          AND AGAIN IT DEPENDS ON HOW MUCH, WHAT IT LOOKS LIKE, IF THAT OCCURS. 
          I JUST WANT TO MAKE SURE THAT IT'S CLEAR THAT WE'RE TALKING ABOUT A PROSPECTIVE CHANGE. I PUT ON HERE NO SIGNIFICANT CHANGE TO THE GENERAL FUND, AND LET ME REITERATE WHAT I MEAN BY NO SIGNIFICANT CHANGE. 
          WE'RE KEEPING THE 10% THAT WE WOULD COME IN ABOVE THE ADOPTED BUDGET INITIALLY STAYS WITHIN OUR RECURRING BUDGET. THAT JUST BECOMES PART OF THE BUDGET PROCESS THAT YOU ALL SEE. WE'RE NOT CHANGING THAT AT ALL. THE ONLY CHANGE, THE ONLY REASON I PUT NO SIGNIFICANT IMPACT HERE, IS THE ONLY CHANGE IS THAT IF WE'RE ABOVE 10%, THE CURRENT POLICY SAYS WE MEET, WE GET YOUR INPUT AND THEN WE MAKE A RECOMMENDATION. THE CHANGE IS THAT WOULD NO LONGER OCCUR. 
          WE WOULD KNOW WE'RE ABOVE 10%, 80% GOES TO CPS, 20% GOES TO THE REES FUND. 
          THAT IS THE ONLY CHANGE. WE'RE NOT ANTICIPATING ANY IMPACT TO OUR RECURRING SERVICES GOING FORWARD. THIS IS ABOUT REALLY SOMETHING THAT IS OUTSIDE OF THAT 10%. SHOULD BE VIEWED FAVORABLY BY RATING AGENCIES. WHEN I SAY "SHOULD BE VIEWED," WHEN I LOOK AT OUR CONVERSATION WITH RATING AGENCIES, THE METHODOLOGIES THAT THEY HAVE IN PLACE, THEY LOOKED AT OUR -- THIS POLICY CHANGE THAT WE MADE IN APRIL, GOT VERY POSITIVE FEEDBACK. 
          EVERYTHING THAT I'VE SEEN, EVERYTHING THAT I'VE HEARD SAYS THEY'RE GOING TO VIEW IT FAVORABLY. I PUT "SHOULD" ON THERE BECAUSE I TRY NOT TO AS MUCH AS I CAN DICTATE TO THE RATING AGENCIES. 
          IT'S STILL THEIR DELIBERATION IN THE COURSE OF EVERYTHING THEY'RE LOOKING AT FOR US, SO I TRY NOT TO BE IN A POSITION WHERE I'M SAYING THEY WILL DO THIS OR THEY WON'T DO THIS, UNLESS I'M REALLY SURE OR I CAN TELL YOU PROBABILITY, BUT, AGAIN, THIS SHOULD BE A POSITIVE THING FROM THEIR PERSPECTIVE. RATINGS ARE OBVIOUSLY IMPORTANT. I'LL TOUCH ON THAT JUST FOR A SECOND. 
          WE GOT EXCELLENT, WHAT I'M GOING TO CALL PARENT RATING OR GENERAL OBLIGATION BOND RATING. AAA FROM BOOTIES AND STANDARD & POORS WITH A TABLE OUTLOOK. AA WITH FITCH WHICH IS ONE NOTCH BELOW AAA. 
          WE TALKED ABOUT BEFORE THAT FITCH DID MOVE US TO A POSITIVE OUTLIKE WHICH THERE'S A POTENTIAL FOR GETTING THAT AA PLUS BACK UP TO A AAA RATING. 
          THAT'S IMPORTANT FOR OUR GEOBOND PROGRAMS GOING FORWARD. 
          THE LAST ONE THAT WAS PASSED IN 2022 WAS THE LARGEST IN THE CITY'S HISTORY. WE'VE TALKED ABOUT ALL THE NEEDS IN THE COMMUNITY, HOW IMPORTANT A SUSTAINED CAPITAL INVESTMENT IS FOR US GOING FORWARD. WE ARE PLANNING FOR A BOND PROGRAM IN 2027. 
          WE'LL CONTINUE TO WORK ON THE SIZE OF THAT, BUT WE KNOW THE IMPORTANCE OF THAT, AND THE STRONGER THE BOND RATINGS WE'VE GOT ON THAT SIDE, THE MORE WE'RE SPENDING DOLLARS ON PROJECTS AND LESSON INTEREST COSTS AND TRYING TO TAKE ADVANTAGE OF THAT AS MUCH AS WE CAN. 
          I SAID PARENT RATING, BECAUSE ALSO IT DOES IMPACT OTHER THINGS THAT WE'RE DOING. WE'RE TALKING ABOUT LIKE THE AIRPORT. 
          THE AIRPORT'S GOING TO BE RATED ON THAT FINANCIAL PLAN, THE AIRPORT REVENUES, THE AIRLINE USE AND LEASE AGREEMENT, ALL OF THOSE FACTORS WILL BE TAKEN INTO CONSIDERATION, BUT ALSO IT DOES HAVE AN IMPACT WHEN THE PARENT RATING IS STRONG. THERE ARE THINGS THAT WE CAN DO FROM A STRUCTURING STANDPOINT, THERE ARE THINGS THAT WE KNOW THAT HELP THOSE RATINGS STAY WHERE THEY ARE OR ARE INFLUENCED BY WHAT THAT PARENT RATING IS. 
          SO IT HELPS AS WE START TO LOOK AT SOME OF THESE OTHER LARGE CAPITAL PROJECTS THAT WE'RE UNDERSTOOD TAKING AS WELL. 
          WE TALKED ABOUT THE FACT THAT WE'RE GOING TO HAVE A CONVERSATION WITH YOU ALL ABOUT A CONVENTION CENTER EXPANSION POTENTIAL, RENOVATION OF THE ALAMODOME, SO ALL OF THESE CAPITAL INVESTMENTS THAT WE MAKE, WE'RE TRYING TO MAKE SURE THAT WE'RE DOING AT THE LOWEST COST OF BORROWING THAT WE CAN. THE PARENT RATING CERTAINLY HELPS US TRY TO ACCOMPLISH THAT. CPS ENERGY'S RATINGS ARE OBVIOUSLY IMPORTANT, TOO. YOU WILL SEE NEXT WEEK VERY LARGE CAPITAL PLAN THAT THEY'VE GOT TO UNDERTAKE. THEY'LL BE BORROWING DEBT FOR THAT, AND SO HAVING STRONG RATINGS THERE IS IMPORTANT AS WELL. 
          ON THIS LAST SLIDE AS I WRAP UP, WE HAD A LITTLE BIT OF CONVERSATION AT 
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GOVERNANCE ABOUT HOW WE WOULD IMPLEMENT THIS OR HOW THIS WOULD WORK. 
          SO JUST VERY SIMPLY, WE WOULD WANT TO WAIT UNTIL THE END OF THE FISCAL YEAR, WE EVEN SAW THIS SUMMER HOW FAST THINGS CAN CHANGE ON US FROM A MONTH-TO-MONTH BASIS.  SO WE COULD CLOSE THE FISCAL YEAR. 
          WE WOULD HAVE A FULL YEAR'S WORTH OF PAYMENT FROM CPS ENERGY, AND IF THERE WERE AN AMOUNT ABOVE THAT 10%, THEN IT WOULD BE ALLOCATED 80% TO CPS ENERGY FOR RESILIENCY AND RELIABILITY PROJECTS, 20% TO REES. 
          THERE WOULD BE NO COUNCIL ACTION TO DO THAT, BASED ON OUR POLICY, WE WOULD BE ABLE TO IMPLEMENT THAT. THE OTHER THANK THAT WE TALKED ABOUT A LITTLE BIT WAS WHAT IS RESILIENCY AND RELIABILITY AND IS THERE -- ARE THERE ENOUGH PROJECTS THERE THAT WOULD WARRANT US SENDING MONEY BACK? AND WHAT I'LL SAY THERE IS WE'VE LOOKED AT THEIR CAPITAL PLAN. OBVIOUSLY THEIR CAPITAL PLAN IS GOING TO BE SPENDING 900 MILLION PLUS EACH YEAR FOR THE NEXT FIVE YEARS, SO YOU'VE GOT THE NEW GENERATION PLAN IN THERE, BUT YOU'VE GOT A LOT OF OTHER THINGS IN THERE AS WELL. EXAMPLES OF SOME OF THAT ARE LIKE RECLOSURES, WE TALKED ABOUT THAT. THESE ARE -- THESE ARE INSTRUMENTS THAT CPS HAS PUT IN, YOU MAY RECALL AS WE WENT THROUGH WINTER STORM URI, PARTICULARLY SOME OF YOU WERE ON THE COMMITTEE ON EMERGENCY PREPAREDNESS, THERE WERE THREE TYPES OF CIRCUITS THAT WERE OUT THERE, THOSE THAT ARE CRITICAL, SUPPORT HOSPITALS, THINGS THAT YOU WANT TO MAKE SURE OR TRY TO DO WHAT YOU CAN TO MAKE SURE THEY CONTINUE TO HAVE POWER. YOU'VE GOT A MIDDLE GROUP THAT ARE KIND OF LIKE UNINTERRUPTIBLE POWER CIRCUMSTSIR KITS THAT THEY MEASURE THE FREQUENCY ON THE SYSTEM AND TRIP AUTOMATICALLY TO MAKE SURE THE SYSTEM STAYS STABLE. THERE'S A THIRD CATEGORY ARE THE ONES THAT ARE GOING TO BE SUBJECT TO LOAD S BROKE THOSE CIRCUITS DOWN INTO SMALLER COMPONENTS SO THAT THAT THIRD CATEGORY, THOSE THAT ARE SUBJECT TO LOAD SHED, THERE'S MORE OF THEM. 
          SO YOU'RE SPREADING THAT OUT OVER A BIGGER POPULATION. 
          SO, YOU KNOW, YOU MIGHT LOOK AT A CRITICAL CIRCUIT THAT HAD HOSPITALS BUT HAD A LOT OF OTHER THINGS TIED TO IT THAT AREN'T CRITICAL, THE RECLOSURE TAKES THOSE OFF AND MAKES THEM SUBJECT TO LOAD SHED. 
          THEY'RE CONTINUING TO DO THAT, SO YEARS AGO, IF THEY NEEDED TO FLIP A SIR CIRCUIT, YOU'VE GOT SOMEBODY WITH A HOT STICK SOMEBODY IS PHYSICALLY FLIPPING A CIRCUIT. THEY'RE NOW ABLE TO DO SOME OF THIS FROM COMPUTERS IN AN OPERATION CENTER, AND THEN MOVING TO THE POINT WHERE SOMEBODY DOESN'T EVEN HAVE TO CONSCIOUSLY FLIP A SWITCH ON THE COMPUTER, IT'S AUTOMATICALLY DOING IT, IT'S ALMOST LIKE A SELF-HEALING GRADE. 
          GRID. THEY'RE GOING TO TALK A LITTLE MORE ABOUT THAT AS THEY TALK ABOUT THE FEDERAL GRANT OPPORTUNITY. 
          ADDITIONAL AUTOMATION. SO IT CAN BE EF EVERYTHING FROM THE SIZE OF THE POLES MOVING FROM WOOD POLES TO P FIBERGLASS POLES, SYSTEM UPGRADES, IT WOULD NOT BE DIFFICULT FOR US TO FIND PROJECTS THAT WOULD FIT INTO THIS RESILIENCY AND RELIABILITY BUCKET IF THIS WERE TO MOVE FORWARD. SO WITH THAT -- AND ON -- SORRY, ON THE R REES SIDE, THAT FUND WAS ESTABLISHED LAST BUDGET CYCLE. 
          IT'S GOT FOUR PRIORITIES, INCLUDING LEVERAGING OTHER FUNDING TO INCLUDE FEDERAL FUNDS, SMALL GRANTS COMMUNITY ORGANIZATIONS, BUSINESS INCENTIVES AND URBAN HEAT ISLAND MITIGATION -- PROBAPROJECTS THAT WE'VE PUSHED OUT UNDER THOSE FOUR PRIORITY AREAS. FOR THE 20%, IF IT WERE THERE, WE WOULD JUST CONTINUE TO INVEST IN THOSE AREAS THAT WE'VE ALREADY DISCUSSED WITH YOU ALL AND INCREASE THOSE BUDGETS IN THOSE AREAS. 
          I THINK WE'VE ALSO COMMITTED THAT ON THE REES FUND, WE WOULD UPDATE YOU PERIODICALLY THROUGHOUT THE FISCAL YEAR IN A B SESSION WHERE WE'RE TALKING ABOUT EITHER RESULTS OF PILOTS, NEW PILOTS WE'RE PUSHING OUT OR JUST UPDATES ON OVERALL ON THE FUNDING THAT'S INCLUDED WITHIN THAT FUND. SO MAYOR AND COUNCIL, THAT WRAPS UP MY PART OF THE PRESENTATION. WE'RE GOING TO NOW SWITCH GEARS OVER TO CPS ENERGY AND ELAINA BALL WITH CPS ENERGY IS GOING TO MAKE THE NEXT PRESENTATION. 
          . >> GOOD AFTERNOON, MAYOR AND COUNCIL. 
          THANK YOU ALL FOR ALLOWING CPS ENERGY TO PROVIDE AN UPDATE ON OUR GRANT STRATEGY. SO I'LL START BY SHARING AND ECHOING WHAT THE CITY MANAGER SHARED, WHICH IS THIS IS REALLY A COLLABORATIVE EFFORT. 
          WE CAME BEFORE YOU ALL IN MAY OF THIS YEAR AND DISCUSSED OUR GRANT STRATEGY IN PARTNERSHIP WITH THE OTHER AGENCIES THAT WE COLLABORATE WITH MONTHLY. SO IN ADDITION TO THE CITY OF SAN ANTONIO, WE WORK WITH BROOKS, THE PORT. WE ALSO WORK WITH SAWS, 
          [00:30:04]
VIA AS WELL AS AACOG AND OTHERS. AND FOR US WHAT WE'RE TRYING TO DO WHEN WE'RE SEEKING GRANT OR LOAN OPPORTUNITIES IS REALLY TO ACHIEVE OUR VISION 2027. ALL OF THE OPPORTUNITIES THAT WE'RE SEEKING ARE IN ALIGNMENT WITH OUR STRATEGIC OBJECTIVES. 
          THE ONE I'M GOING TOE TALK WITH YOU ALL ABOUT AT YOUR REQUEST REALLY FOCUSES ON THE CUSTOMER EXPERIENCE AND OPERATIONAL EVOLUTION. 
          SO RELATIVE TO THE BIL AND IRA, WE'VE BEEN REALLY FOCUSED ON THE ALIGNMENT WITH OUR COMMUNITY GOALS. AND SO AS WE SEEK GRANT OPPORTUNITIES, WE'RE LOOKING AT NEW TECHNOLOGIES, A KNOW FOCUS ON OUR CAP OBJECTIVES AND CLIMATE TRANSFORMATION, AS WELL AS THE ASSETS THAT WE OWN AND HOW WE'RE WORKING TO TRANSFORM OUR GRID. 
          AS WE'VE DISCUSSED BOTH IN OUR GENERATION PLANNING EXERCISE AS WELL AS IN VARIOUS OTHER MEETINGS, WE ARE IN THE PROCESS OF UNDERGOING A SIGNIFICANT TRANSITION IN OUR POWER GENERATION FLEET. 
          ADDITIONALLY, WE'RE WORKING TO MAKE OUR GRID MORE RESILIENT, APPLYING TECHNOLOGY TO ENSURE THAT OUR GRID IS ABLE TO INTEGRATE RENEWABLE RESOURCES AS WELL AS EXPAND STORAGE AND WORK TO ENABLE RELIABILITY BY DEPLOYING TECHNOLOGIES THAT ALLOW OUR GRID TO SELF-HEAL. 
          SO PARTICULAR TO THE GRANT THAT WAS RECENTLY ANNOUNCED, CPS ENERGY HAS RECEIVED INITIAL NOTIFICATION OF AN AWARD OF THE GRID RESILIENCE AND INNOVATION PARTNERSHIP PROGRAM. THIS GRID PROGRAM IS PART OF THE BIL, IT'S ACTUALLY A COMPANION GRANT OPPORTUNITY THAT $10.5 BILLION OF AWARD MONEY WAS SET ASIDE NATIONALLY FOR GRANT PROGRAMS. OUR GRANT APPLICATION WITHIN THE DOE REALLY FOCUSED ON OUR COMMUNITY ENERGY RESILIENCY PROGRAM. 
          WE'VE GOT A TREMENDOUS AMOUNT OF GROWTH GOING ON IN SAN ANTONIO AND WE ARE SEEING MORE AND MORE WHAT WE CALL DISTRIBUTED ENERGY RESOURCES ON OUR SYSTEM, WHETHER THAT'S ROOFTOP SOLAR, CUSTOMER-OWNED STORAGE AND POST URI, MANY OF OUR CUSTOMERS HAVE ACTUALLY INSTALLED THEIR OWN GENERATORS. SO WHAT WE'RE SEEKING TO DO IS ENSURE THAT OUR GRID IS MODERNIZE AND WE'RE BUILDING A RESILIENT GRID THAT CAN HELP INTEGRATE THESE DERS BUT ALSO ACCELERATE THE CHANGES THAT WE SEE COMING ON THE HORIZON. ADDITIONALLY WHAT WE'RE FOCUSED ON IS ENSURING THAT WE ACCELERATE INVESTMENT ON TECHNOLOGY SUCH AS MICROGRIDS AND SMART GRID TECHNOLOGY. WE USE A LOT OF WORDS, WE HAVE FAULT LOCATION, ISOLATION AND SERVICE RESTORATION IN HERE. SPEAKING VERY SIMPLY WHAT THIS IS, WHEN WE HAVE AN OUTAGE ON OUR SYSTEM, WHEN WE HAVE A FAULT, WHAT WE'RE SEEKING TO DO IS ENABLE TECHNOLOGIES THAT WILL ALLOW OUR SYSTEM TO DETECT THAT FAULT, ISOLATE THE FAULT SO THAT WE CAN IMMEDIATELY GET CUSTOMERS BACK WITHOUT HAVING TO ROLL A TRUCK. 
          THAT WILL BOTH REDUCE THE NUMBER OF OUTAGES THAT OUR CUSTOMERS EXPERIENCE AND THOSE THAT DO EXPERIENCE IT, IT SHOULD SHORTEN THE DURATION OF THOSE OUTAGES. THE AWARD WAS FOR $60.4 MILLION. 
          IT'S AN EQUAL SHARE, SO CPS ENERGY WILL BE PUTTING FORWARD $30.2 MILLION AND THE FEDERAL FUNDING WILL BE ENABLED FOR US AT $30.2 MILLION AS WELL. I WILL ALSO JUST HIGHLIGHT THIS, THERE'S A LOT OF WORDS ON THIS, BUT ESSENTIALLY THERE ARE FOUR KEY AREAS THAT WE'RE FOCUSED ON. I TALKED ABOUT THE DISTRIBUTION GRID ORCHESTRATION, THAT'S, AGAIN, BRINGING IN ALL OF THOSE DERS AND ENSURING WE HAVE TECHNOLOGY TO RELIABILITY AND RESILIENTLY INTEGRATE THOSE DERS. THE SMART GRID REALLY SPEAKS TO TAKING BATTERY STORAGE AND ENABLING A RESILIENT OPERATION THROUGH A CORRIDOR. 
          SELF-HEALING GRID IS THE TECHNOLOGY I MENTIONED WHEREBY THE SYSTEM ITSELF SENSES WHEN THERE'S AN OUTAGE OR EVENT AND SEALS THE REST OF THE SYSTEM FROM THAT GRID EVENT AND REDUCES THE NUMBER OF CUSTOMERS OUT DURING THAT EVENT. AND THEN, AGAIN, WE'RE LOOKING AT KIND OF -- WE CALL IT SUBSTATION OF THE FUTURE, BUT THIS IS REALLY WHERE WE'RE LOOKING AT HOW DO WE TIE RENEWABLE ENERGY AND BATTERY STORAGE TO HELP OUR SYSTEM RIDE THROUGH SIGNIFICANT STORM EVENTS. 
          SO WITH THAT, I'LL TAKE ANY QUESTIONS THAT YOU ALL HAVE ABOUT THE GRANT. I DO WANT TO ECHO AN ITEM THAT MR. GORZELL SHARED. 
          SO WHILE THIS IS GOING TO REPRESENT $30 MILLION OVER FIVE YEARS OF INVESTMENT. FOR EXAMPLE, LAST YEAR WE SPENT $941 MILLION IN CAPITAL EXPENDITURES SO IT'S A VERY SMALL AMOUNT COMPARED TO OUR OVERALL CAPITAL PROGRAM. THAT BEING SAID, WE'RE COMMITTED TO SEEKING TO APPLY FOR AND RECEIVE AS MUCH FUNDING AS WE CAN, ULTIMATELY TO ACCELERATE THE PLANS WE HAVE IN OUR CAPITAL PROGRAM. OKAY. 
          [00:35:02]
          >> I'M JUST GOING TO REINFORCE SOMETHING THAT ELAINA JUST SAID THAT THE MAYOR AND I WENT UP TO WASHINGTON, I DON'T KNOW, SIX MONTHS AGO OR SO, MAYOR. MET WITH THE DOE, AND -- TO TALK ABOUT THESE TYPE OF OPPORTUNITIES AND I JUST CAME BACK FROM A CEO'S -- NATIONAL CEO'S CONFERENCE OF UTILITIES AND THERE WAS ONLY A FEW OF US WHO GOT THIS GRIP GRANT. AND, YOU KNOW, ALL THE OTHER UTILITY WERE ASKING, HOW DID YOU GUYS DO THIS? WE'RE REALLY TRYING TO DO THE THINGS THAT WE'RE DOING HERE IN SAN ANTONIO. 
          THE WAY I -- THAT WE EXPLAINED OUR COMMUNITY STRATEGY TO THE DOE UNDERSECRETARY THAT DAY, THESE WERE THINGS WE OR GOING TO DO ANYWAY, RIGHT? THE MODERNIZATION OF OUR GRID, WE'RE GOING DO THAT WHETHER WE GET THE GRANT FUNDING OR NOT. IT'S JUST THE PACE AT WHICH WE CAN DO IT AND THE COST TO OUR CUSTOMERS REALLY GETS IMPACTED, YOU KNOW, WHEN WE CAN BRING FEDERAL DOLLARS IN TO HELP BUY THOSE COSTS DOWN, TO EXTEND THE AMOUNT OF EFFORT THAT WE CAN INVEST IN OUR COMMUNITY. SO THIS IS VERY MUCH A STRATEGIC WIN FOR OUR COMMUNITY THAT IS A DIRECT RESULT OF US REALLY -- YOU KNOW, WE DIDN'T USED TO DO A LOT OF FEDERAL GRANTS IN THE PAST BECAUSE WE DIDN'T LIKE SOME OF THE CONDITIONS THAT CAME WITH THOSE DOLLARS. 
          YOU KNOW, NOW, YOU KNOW, WE'RE GETTING INTO A SPACE, WORKING WITH ERIK AND THE CITY AND ALL OUR COMMUNITY PARTNERS WHERE WE'RE GETTING BETTER AT MANAGING, YOU KNOW, TO THE COMPLIANCE ASPECTS OF WHAT THESE GRABTS BRING WITH THEM. SO, AGAIN, THIS WAS A DIRECT RESULT OF EFFORT OF OURS TO GO UP TO DM D.C. AND TALK TO THE DOE ABOUT THESE TYPES OF 
          PROJECTS. THANK YOU. >> MAYOR NIRENBERG: GREAT. 
          THANK YOU VERY MUCH, RUDY, ELAINA, AND BEN FOR THE PRESENTATIONS. 
          VERY HELPFUL. SO LET ME JUST MAKE A FEW COMMENTS TO SET THE STAGE FOR THE DISCUSSION. FIRST OF ALL, WELCOME, ELAINA. 
          I THINK THIS IS THE FIRST TIME YOU'VE BRIEFED CITY COUNCIL, BUT IT WAS -- ELAINA IS THE CHIEF STRATEGY OFFICER FOR CPS ENERGY AND A GREAT HIRE, IF I DO SAY SO MYSELF, IS ALREADY DOING SOME GREAT THINGS FOR CPS ENERGY AND THE COMMUNITY. AND THE REASON WHY I THINK THAT THAT'S IMPORTANT IS THAT EVERYTHING THAT WE'RE TALKING ABOUT TODAY IS BEING DRIVEN BY THE POLICY PARAMETERS AND PRIORITIES OF THE CITY COUNCIL. WE HAVE TALKED ABOUT AND HAVE ADOPTED AT CPS ENERGY THE ENERGY SCENARIO FOR THE NEXT FIVE PLUS YEARS IN TERMS OF HOW WE'RE GOING TO ADDRESS THE COMMUNITY'S PRIORITIES OF RESILIENCY, RELIABLE ELECTRICITY, AFFORDABILITY, AS WELL AS MEETING SOME OF THE OVERALL GOALS AND EMISSIONS REDUCTIONS AND THINGS LIKE THAT, HOW THAT IMPACTS OUR GENERATION PORTFOLIO, HOW THAT IMPACTS THE INVESTMENTS THAT WE MAKE TO THE DIGITAL OPERATIONS OF THE UTILITY, HOW THAT IMPACTS THINGS LIKE TREE TRIMMING THAT CPS ENERGY HAS TO DO. 
          THE BIG STRATEGY DISCUSSIONS THAT WE HAVE UP HERE, THAT'S WHAT ALL THIS IS P PERTAINING TO. AND SO LET ME JUST START BY MAKING A FEW COMMENTS ABOUT THE CONDITION OF CPS. 
          THIS WAS A FAR DIFFERENT DISCUSSION THAN WE WERE HAVING ABOUT CPS ENERGY THREE YEARS AGO WHEN WE WERE IN THE AFTERMATH OF WINTER STORM URI. 
          WE WERE ALSO GOING THROUGH SIGNIFICANT DISRUPTIONS RELATED TO THE PANDEMIC, UNPAID BILLS, THINGS LIKE THAT, THE THINGS THAT WE HAD TO DO TO SOFTEN THE IMPACT OF FOLKS WHO HAD LOST THEIR INCOME AND WERE UNABLE TO PAY THEIR CPS BILLS. WE NEEDED TO KEEP THE LIGHTS ON AND THE HEAT ON AND THE AC ON FOR FOLKS WHO IN MANY CASES COULDN'T AFFORD TO PAY THEIR CPS BILLS ANYMORE. THOSE ISSUES ARE BEGINNING TO RESOLVE. THEY'RE RESOLVING SLOWLY, BUT THEY ARE BEGINNING TO RESOLVE, AND WE HAVE AN OBLIGATION -- A FINANCIAL OBLIGATION TO MAKE SURE THEY'RE RESOLVED. BUT WE HAVE A COMMUNITY OBLIGATION TO MAKE SURE THEY'RE RESOLVED IN A WAY THAT IS -- THAT RECOGNIZES FOLKS NEED TO KEEP THEIR HEAT ON, KEEP THE LIGHTS ON, KEEP THE AC ON DURING THE HEAT OF THE SUMMER. WE MADE IT THROUGH PROBABLY THE MOST DIFFICULT SUMMER ON RECORD, THE HOTTEST SUMMER ON RECORD. 
          WE DID SO IN A WAY IN WHICH ERCOT, WHO WAS AT THE TIME TELLING TEXAS THAT WE MIGHT RUN OUT OF POWER, PLEASE CONSERVE, PLEASE CONSERVE. 
          WE KEPT THE ELECTRICITY RUNNING HERE IN SAN ANTONIO TO AN EXTENT THAT OTHER COMMUNITIES, BECAUSE THEY WERE RUNNING OUT, HAD TO RELY ON CPS ENERGY AND SO WE SOLD THAT EXCESS ENERGY INTO THE MARKET, AND THAT'S WHERE THE EXCESS REVENUE CAME FROM, THOSE OFFSYSTEM SALES. 
          WE ALSO WERE ABLE TO KEEP THE LIGHTS ON BECAUSE OF THE INVESTMENTS THAT WE'VE BEEN MAKING IN THE OPERATIONS OF THE PLANTS. 
          THE PLANTS DIDN'T GO DOWN, THEY WERE WELL MAINTAINED, THEY DID -- 
          [00:40:03]
THEY PERFORMED WHEN MANY PLANTS ACROSS TEXAS WERE FAILING. 
          THAT'S ALL REALLY GOOD NEWS. THAT, IN MY MIND, SHOWS US WHAT WE'VE BEEN DOING IS WORKING. IT MAY NOT BE AN IDEAL CIRCUMSTANCE YET, IDEAL CONDITIONS, BUT WE'RE IMPROVING AND WE'RE MAKING THE RIGHT INVESTMENTS TO DO THAT. SO LET'S GO INTO THE FINANCIAL -- THE REVENUE DISCUSSION. THE 100 AND -- HOW MUCH IS IT, RUDY, IN TERMS OF TOTAL OFFSYSTEM SALES FROM THE SUMMER? 
          >> TOTAL WAS ABOUT 146 MILLION THAT WE BROUGHT IN THIS SUMMER, WHICH WAS PHENOMENAL FOR THE UTILITY AND FOR THE CITY. 
          YOU KNOW, I -- ABOUT 30 MILLION OF THAT IS CITY PAYMENT. 
          OKAY. HOW MUCH? 15 EXTRA. 
          SO THE REST WOULD BE FOR OUR OPERATION. >> MAYOR NIRENBERG: OKAY. 
          SO -- '24 WAS FROM OFFSYSTEM SALES. THEY WERE NOT EXPECTED, WE GOT THAT AS A RESULT OF THE FINAL REVENUE NUMBER THAT CAME IN OVER FORECAST. LAST YEAR, YOU MIGHT REMEMBER, THAT WE ALSO EXPERIENCED A BIT OF A BUMP IN REVENUE -- ACTUALLY, A LARGER BUMP IN REVENUE BECAUSE GAS PRICES HAD SHOT THROUGH THE ROOF, THAT'S A PASSTHROUGH FEE THAT CPS CUSTOMERS PAY FOR, AND SO AS A RESULT OF THAT, THE CITY REVENUE WAS MUCH LARGER. BOTH OF THOSE THINGS DON'T HAPPEN EVERY YEAR. THAT'S ABNORMAL. I WOULD JUST ASK, ERIK, IN THE LAST 20 YEARS, HOW MANY TIMES HAVE WE EXCEEDED 10% -- HIGHER THAN 10% OF OUR FORECASTED REVENUE? YOU SAID, WHAT, ERIK, 
          FOUR OR FIVE TIMES? >> WALSH: I WAS WRONG. IT WAS THREE YEARS. 
          >> MAYOR NIRENBERG: THREE TIMES. TWO OF WHICH WERE IN THE 
          LAST TWO YEARS. >> WALSH: YES, SIR. >> MAYOR NIRENBERG: AND THAT'S BECAUSE, YOU KNOW, THERE'S BEEN SOME VOLATILITY IN THE ENERGY MARKETS AND THERE'S BEEN SOME VOLATILITY IN THE ENVIRONMENT. 
          AS WE GET BETTER IN PREDICTING THOSE THINGS, AS WE START TO WORK ON GENERATION ACROSS THE STATE, HOPEFULLY THAT WON'T HAPPEN AGAIN, BUT BECAUSE WE DID EXPERIENCE IT, CITY COUNCIL PASSED A POLICY LAST YEAR THAT SAID ANY TIME WE EXCEED 10%, WHICH HAS HAPPENED THREE TIMES IN THE LAST 20 YEARS, WE'RE GOING TO HAVE A COUNCIL DISCUSSION ABOUT THAT EXCESS AMOUNT, OVER 10%. THIS YEAR IT HAPPENED, AND IT HAPPENED WHILE WE WERE IN THE MIDDLE OF A BUDGET. WE ALREADY HAD A LIST OF AMENDMENTS THAT WERE NOT GOING TO GET FUNDED, SO WE USED THAT OPPORTUNITY, BECAUSE WE HAD AMENDMENTS ALREADY VETTED, AT LEAST ON THE LIST, TO GO AHEAD AND SEE IF THOSE WERE PRIORITIES, AND SO WE BUBUDGETED THAT INTO 2024. THE ONLY REASON WHY I'M BRINGING ALL THIS UP IS THAT THAT HAS NOT CHANGED. THE DISCUSSION ABOUT THE CCR, WHICH IS NOW AN ALTERNATIVE PROPOSAL FROM BEN, IS HOW DO WE REFINE THAT 10% POLICY? THE 10% POLICY AS OF TODAY HAS NOT CHANGED, BUT BEN'S RECOMMENDATION, IF WE WERE TO FURTHER REFINE THAT 10% POLICY, IS, HEY, WE ALL SORT OF TALKED ABOUT THE IDEA THAT THIS REVENUE IS PRODUCED BY ENVIRONMENTAL ISSUES RELATED TO CLIMATE CHANGE, IT'S ALSO PRODUCED BY VOLATILITY IN THE MARKET THAT RESULTS IN PEOPLE HAVING TO TURN THEIR THERMOSTAT DOWN AND PAY EXTRA FOR FUEL OR WHATEVER, LET'S GIVE SOME OF THAT REVENUE -- OR LET'S RESERVE SOME OF THAT REVENUE TO ADDRESS THOSE CAUSES. SOME OF THEM ARE AT CPS ENERGY, SOME OF THEM ARE AT THE CITY. SO IN BEN'S RECOMMENDATION, WE WOULD PROVIDE 80% OF THAT EXCESS AMOUNT TO CPS ENERGY TO ADDRESS THOSE THINGS. WE WOULD TAKE 20% FOR OUR OWN PURPOSES TO ADDRESS THOSE THINGS THROUGH A FUND THAT WE CREATED FOR THAT PURPOSE CALLED REES, RESILIENCY, ENERGY EFFICIENCY, SUSTAINABILITY FUND. 
          TO  ME THAT'S A SOUND USE OF THE REVENUE BECAUSE WE'RE DOING EXACTLY WHAT WE'RE INTENDING TO DO WITH EXCESS REVENUE, KNOWING IT'S NOT GOING TO HAPPEN VERY OFTEN. I'M COMFORTABLE WITH THAT RECOMMENDATION, BUT THAT RECOMMENDATION WILL NOT BE CONSUMMATED, IF AT ALL, UNTIL WE HAVE OUR BUDGET CONVERSATION DURING GOAL-SETTING IN APRIL. WE CAN'T JUST DO THAT. WE DON'T PASS AN ORDINANCE ON FINANCIAL POLICIES UNTIL WE ACTUALLY GOO INTO THE BUDGET CONVERSATION. SO THAT'S WHERE WE STAND WITH THE 10% POLICY, HOWEVER, I UNDERSTAND THAT THE NEED TO TALK ABOUT IT AND CONSIDER THIS UP FRONT NOW SINCE WE ARE TALKING ABOUT CPS ENERGY AND REVENUE REQUIREMENTS AND WE'RE GOING TO HAVE A RATE DISCUSSION VERY SOON. 
          [00:45:01]
SO THAT'S THE CONTEXT I WANTED TO JUST STAY, SO WE KNOW WHERE WE ARE. 
          NOTHING IS GOING TO GET PASSED TODAY. WE CAN GIVE SOME DIRECTION TO THE CITY STAFF ON WHAT THAT CONVERSATION LOOKS LIKE IN APRIL. AND, AGAIN, IN MY MIND, I THINK, PROVIDING A LITTLE BIT MORE PREDICTABILITY IN AN EXTREMELY UNPREDICTABLE EVENT THAT WE HAVE THAT EXCESS REVENUE IS FINE WITH ME, ESPECIALLY IF IT'S ADDRESSING SOMETHING THAT BOTH THE RATING AGENCIES AND OUR CUSTOMERS WANT TO BE ADDRESSED. SO I THINK THAT'S WHERE I'LL LEAVE IT. 
          THE OTHER THING I WANTED TO SAY IS ELAINA, RUDY, SHANNON, CORY, AND JONATHAN, EVERYBODY ELSE FROM CPS WHO ARE HERE, DOING A GREAT JOB. 
          ONE OF THE CHALLENGES THAT WE GAVE YOU WAS TO LOOK, SCOUR THE IRA AND ALL THE OTHER PIECESES FROOSTLES LEGISLATION TO SEE IF THERE WERE OPPORTUNITIES TO ACCELERATE THE SCENARIO THAT WE ADOPTED AT THE BOARD, WHICH IS A REFLECTION OF THE CITY COUNCIL CONVERSATION ABOUT GENERATION RESILIENCY, RELIABILITY, AFFORDABILITY, THAT'S WHAT THIS GRABT OPPORTUNITY SAYS TO ME. THAT'S WHAT WE'VE BEEN TALKING ABOUT IN OTHER AREAS OF CPS, THAT'S WHAT IT MEANS IS THAT WITH THESE GRANT OPPORTUNITIES AND WITH THIS EXCESS REVENUE, WE GET TO ACCELERATE WHERE THE COUNCIL HAS SAID WE NEED TO GO AS A COMMUNITY WITH CPS ENERGY. SO I THINK A JOB WELL DONE WITH THAT CONTEXT NOW, WE'LL GO AHEAD AND START DISCUSSION ABOUT ALL OF THIS. 
          AND I THINK NOVEMBER'S GOING TO BE OUR CPS MONTH AT CPS ENERGY, RIGHT? SO WE'LL START WITH COUNCILMEMBER ROCHA GARCIA? 
          >> GARCIA: THANK YOU, MAYOR, AND I APPRECIATE ERIK AND THE MAYOR FOR ALLOWING US TO HAVE THE CONVERSATION A LITTLE BIT EARLIER ON, AND I APPRECIATE CPS ENERGY FOR BEING HERE. I'M GOING TO REPEAT SOME OF THE QUESTIONS THAT I ASKED DURING THE GOVERNANCE COMMITTEE JUST SO THAT MY COLLEAGUES CAN HEAR SOME OF THE QUESTIONS. 
          AND I DO WANT TO ACKNOWLEDGE THAT I THINK YOU ALL ARE DOING A GREAT JOB. CONGRATULATIONS ON THE GRANT. 
          I WAS VERY EXCITED ABOUT IT. I'M HAPPY TO HEAR -- AND THIS IS ACTUALLY GOING TO BE A CLARIFYING QUESTION FOR BEN, DID YOU SAY IT'S $900 MILLION PLUTS IN GENERATIONAL PLANNING THAT CPS IS INVESTING OVER THE NEXT FIVE YEARS? [INDISCERNIBLE] THAT INCLUDES GENERATION. THERE'S A LOT OF OTHER ITEMS IN THERE, AND WE'LL COVER THAT WITH YOU OVER THE COURSE OF THE NEXT SEVERAL MEETINGS. 
          >> GARCIA: THAT SOUNDS LIKE A HEALTHY AMOUNT, BUT WHAT'S THE OVERALL 
          NEEDED? >> GORZELL: IN TERMS OF -- 
          >> GARCIA: LIKE IF YOU HAD A MAGIC WAND TODAY AND YOU GOT ALL OF THE MONEY THAT YOU NEEDED FROM THE TOOTH FAIRY, HOW MUCH WOULD THAT BE? YOU ONLY HAVE $900 MILLION BUDGETED OVER FIVE YEARS. 
          HOW MUCH WOULD IT BE? >> GORZELL: SO 900 MILLION PER YEAR OR MORE, SO WE'RE TALKING ABOUT SEVERAL BILLION DOLLARS, FIVE, $6 BILLION PLUS PROGRAM. THEY WILL LAY THAT OUT AS PART OF THE BUSINESS 
          CASE. >> GARCIA: PERFECT. >> GORZELL: IT'S GOT GENERATION PLANNING, IT'S GOT ALL THE RELIABILITY, THE MAINTENANCE OF THE PLANTS, I GUESS THE MORE SUBSTANTIAL MAINTENANCE OF THE PLANTS, ALL OF THOSE TUPS, BUT I GUESS IF YOUR QUESTION WAS IF NONE WEREN'T AN ISSUE AND THEY COULD HAVE EVERYTHING THAT THEY WANT, IS THAT THE 
          QUESTION? >> GARCIA: YEAH, PRETTY MUCH. 
          >> GORZELL: I'M GOING TO LET RUDY DO THAT ONE. >> GARCIA: SORRY, IT GOT 
          ME THINKING. >> AND I'M GOING TO -- CORY IS IN THE ON-DECK CIRCLE IN CASE I NEED SOME HELP. COUNCILWOMAN, OVER THE NEXT DECADE TO 15 YEARS WE'RE GOING TO HAVE TO INVEST -- AS MUCH AS OUR TOTAL ASSET BASED TODAY. RIGHT NOW WE'VE GOT $14 BILLION IN TOTAL ASSETS WE'LL HAVE TO AT LEAST REINVESTS THAT AMOUNT OVER THE NEXT 15 YEARS TO REPLACE OLD POLES. 2/3 OF OUR GENERATION THAT'S GOING TO COME OFFLINE THAT WE'VE GOT TO REPLACE AND THEN SOME. 
          WE'VE GOT OUR AGING TECHNOLOGY INFRASTRUCTURE IMMEDIATELY THAT HAS TO BE REPLACED, AND SO TO DO THAT, WE'VE GOT SO MUCH SUPPORTED BY OUR CURRENT RATE STRUCTURE AND THEN, YOU KNOW, THAT'S WHY WE TRY TO COME IN AND TAKE BITES OF THE APPLE IN TWO-YEAR INCREMENTS BECAUSE WE CAN GET WHAT WE NEED FOR THE TECHNOLOGY WHILE WE DO OUR GENERATION PLAN. 
          YOU KNOW, WE'LL COME BACK, HAVE A CONVERSATION ABOUT WHAT WE NEED TO FUND THE GENERATION PLAN, AND WE'LL DO THAT OVER A REASONABLE TIME FRAME TO TRY TO LAYER IN WHATEVER THAT NEED IS. YOU KNOW, BECAUSE WHAT HAPPENS IS, WHEN YOU TAKE A PLANT OFFLINE, THOSE ASSETS GO AWAY -- IN AUDIO] -- RECONCILIATION THAT'S HAPPENING THAT WON'T TAKE A $15 BILLION ASSET BASE AND TURN IT INTO A $30 BILLION ASSET BASE, BUT IT WILL BE A $14 BILLION ASSET BASE THAT MAY TURN INTO A $20 BILLION ASSET BASE OVER THE NEXT DECADE BECAUSE WE'VE DONE THIS IN A THOUGHTFUL MANNER. SO, YOU KNOW, I WOULDN'T WAVE A MAGIC WAND AND SAY, HEY, I NEED $10 BILLION TODAY TO REPLACE ALL MY OLD STUFF . I'M GOING TO TAKE IT IN REASONABLE CHUNKS THAT I 
          THINK THE COMMUNITY CAN MANAGE. >> GARCIA: THANK YOU. 
          SO WITH THAT, YOU'RE STILL ANTICIPATING HOW MANY MORE RATE INCREASES 
          OVER THE NEXT 15 YEARS? >> YOU KNOW, I MEAN, I CAN'T LOOK THAT FAR OUT, 
          [00:50:03]
BUT I CAN TELL YOU, WE'LL NEED TO COME IN TWO YEARS FROM NOW AND HAVE A CONVERSATION. AND THEN LIKELY THE -- TWO YEARS FROM THEN. 
          WE'LL NEED TO AT LEAST PUT A PLACE HOLDER IN CASE THERE'S STILL SOME 
          WORK TO DO. >> GARCIA: GOT IT. IN ANY CASE SCENARIO, 
          WOULD YOU NEED LESS OF AN INCREASE? >> ABSOLUTELY. 
          SURE. >> GARCIA: PERFECT. >> AND AS YOU'LL SEE, AS WE GET INTO THIS CONVERSATION, YOU'LL SEE THAT DYNAMIC GOING ON NOW. I MEAN, WHAT ERIK SAID -- I MEAN, WHAT BEN SAID IS RIGHT. YOU KNOW, WHEN IT -- SAY THE CITY GIVES US MONEY BACK OR, YOU KNOW, WE MAKE MONEY ON THE WHOLESALE MARKET, WE WORK THAT INTO OUR OVERALL FINANCIAL MODEL, AND THAT HAS IMPLICATIONS IN THE LONG TERM THAT WILL GIVE US SOME RELIEF. NOW, WILL IT REPLACE THE NEED FOR A RATE INCREASE? NO. 
          AND I COULD NEVER STAND UP HERE AND SAY, HEY, I CAN'T COME IN HERE FOR FIVE YEARS. YOU KNOW, I HAVE A RESPONSIBILITY, BUT, YES, 
          I MEAN, IT DOES HELP. >> GARCIA: SURE. AND I ALWAYS REFER TO THE FACT THAT YOU ALWAYS SAY, IT'S A VOLATILE MARKET, RIGHT? 
          >> YES, MA'AM. >> GARCIA: AND SO I APPRECIATE THAT THAT YOU ALL ALWAYS SAY THAT. AND I UNDERSTAND THE NEED AND I SEE YOU ALL BUILDING A STRONG CASE FOR A RATE INCREASE, RIGHT? SO I'M TRYING TO FIGURE OUT IN THE MEANTIME THIS, RIGHT? BUT I'M SPECIFICALLY TO THIS ONE, I'M -- I WAS A LITTLE BIT WORRIED BECAUSE THE RACK WAS DISSOLVED, AND ALSO BECAUSE -- AND YOU JUST REFERENCED THIS, RIGHT, I DON'T KNOW HOW MANY TIMES IT'S GOING TO TAKE SOMETHING TO RECUR TO ASSUME THAT IT'S GOING TO BECOME A REGULAR OCCURRENCE, RIGHT? SO THIS HAS HAPPENED TWO YEARS IN A ROW, RIGHT? I DON'T KNOW AT WHAT TIME WE BUILD IT INTO OUR FINANCIAL MODEL, RIGHT, OR WE CHANGE OUR FINANCIAL MODEL. I DON'T KNOW THAT YOU CAN DO THAT EVEN, RIGHT, WITH THE ENERGY AND THE WAY THAT IT IS, RIGHT? SO I COMPLETELY UNDERSTAND. SO THERE'S -- I'M TRYING TO BALANCE, RIGHT? WHAT I'M SAYING IS I'M LOOKING AT BOTH SIDES. 
          I'M TRYING TO WEIGH OUT BOTH SIDES, BUT WHAT I DO UNDERSTAND IS THAT MY RESIDENTS WILL SEE THAT THERE IS NO GUARANTEE FOR A -- TO FOREGO AN INCREASE, RIGHT, AND SO THAT'S KIND OF WHAT I'M LOOKING AT SPECIFICALLY. 
          WOULD A CHANGE IN THE CURRENT AGREEMENT RIGHT NOW BETWEEN CPS AND COSA, JUST TO MAKE SURE, IT DOESN'T AFFECT OUR CREDIT, CORRECT? OUR -- WITH THE CREDIT RATING AGENCIES, CORRECT? 
          >> GORZELL: THIS RECOMMENDED CHANGE IN POLICY I ANTICIPATE WOULD 
          HAVE NO IMPACT ON OUR RATING WHATSOEVER. >> GARCIA: OKAY. 
          BUT YOU CAN'T BE SURE OF THAT JUST YET, RIGHT? IT'S ONE OF THOSE MAYBE? 
          OR YOU'RE PRETTY SURE IN. >> GORZELL: WHAT WAS THE 
          SECOND PART OF YOUR -- >> GARCIA: YOU'RE PRETTY SURE IT WON'T HAVE. 
          >> GORZELL: BASED ON ALL THE CONVERSATION TS WE'VE HAD WITH THEM, THE METHODOLOGIES. THIS IS REALLY TALKING ABOUT YOU ALL MOVING FROM HAVING DOLLARS THAT YOU'RE GOING TO HAVE AN INPUT SESSION ON AND TALK ABOUT HOW TO SPEND AND JUST SAYING UP FRONT WE WANT TO ALLOCATE THEM TO WHAT YOU BELIEVE ARE PRIORITY AREAS, RESILIENCY AND RELIABILITY, BOTH AT CPS ENERGY AND WITHIN OUR ORGANIZATION, I FEEL VERY 
          COMFORTABLE THAT THAT WOULD NOT BE AN ISSUE. >> GARCIA: GOT IT. 
          AND THANK YOU FOR CLARIFYING THAT, BEN, AND I APPRECIATE, AGAIN, SO IT'S MORE OF LIKE WHAT WE HAVE CONTROL OVER AS CITY AND AS CITY COUNCIL MEMBERS, RIGHT? AND I THINK THAT'S KIND OF WHERE I'M GOING AT. 
          I DON'T KNOW EXACTLY WHERE THE EXTRA MONEY WOULD BE GOING AT NECESSARILY AT CPS, BUT MY RESIDENTS CAN SEE STREETS THAT ARE CHANGED OR THAT ARE IMPROVED OR SIDEWALKS THAT ARE ADDED. 
          ONE OF MY COLLEAGUES HAD PREVIOUSLY MENTIONED THAT WE'RE LIKE IN A HUNGRY, HUNGRY HIPPOS GAME. I HAVE LIKE A WHOLE LIST OF PROJECTS READY TO GO WITH BUDGETS FOR EACH ONE OF THEM, SO I DIDN'T UNDERSTAND THE WHOLE CONCEPT OF HUNGRY, HUNGRY HIPPOS, BECAUSE, AGAIN, I HAVE A WHOLE PROJECT LIST READY TO GO. MY RESIDENTS COULD BENEFIT FROM $2 MILLION. 
          EACH ONE OF US COULD BENEFIT FROM $2 MILLION IN PROJECTS. 
          SO THAT'S WHY, AGAIN, I'M TRYING TO BALANCE THE NEEDS OF CPS ENERGY AND THE IMMEDIATE NEEDS THAT I WAS ELECTED INTO OFFICE TO REPRESENT, RIGHT? AND SO, AGAIN, THOSE ARE THE SIDEWALKS, THE POTHOLES, ET CETERA. 
          AND SO WITH THAT, THAT 60 TO $90 MILLION REDUCTION TO ME, IT DOES BECOME SOMETHING THAT IS TANGIBLE AND IT'S -- THAT MY RESIDENTS SEE. 
          THEY MIGHT NOT SEE EXACTLY WHAT YOU ALL ARE DOING AT A PLANT, RIGHT? WELL, IT'S NEEDED, ABSOLUTELY NEEDED. BUT THIS IS A TOUGH JUSTIFICATION FOR ME, RIGHT? SO WHAT DO WE DO THAT'S GOING TO BE SHOWN FOR? WHAT IS HAPPENING THAT I AM ASSUMING IS NEEDED, RIGHT? SO IN THE BUSINESS CASE WHEN WE'RE LOOKING AT OUTLYING THE CASE FOR A RATE INCREASE, IT'S ALSO LEARNING FACTORS SUCH AS OPERATIONAL COST, CAPITAL INVESTMENT LEVELS, SYSTEM IMPROVEMENTS, PRESSURES, OBVIOUSLY, OF THE MARKET, FINANCIAL METRICS AND MANY OTHER FACTORS. 
          [00:55:01]
AND SO I HAVE A HARD TIME TRYING TO UNDERSTAND HOW MUCH OF AN IMPACT WOULD THIS MAKE? AND MORE IMPORTANTLY, IF WE DON'T DO THIS, CAN I GUARANTEE, LIKE -- CAN WE GUARANTEE -- I CAN GUARANTEE MY RESIDENTS THAT CPS ENERGY IS STILL DOING EVERYTHING POSSIBLE TO BUILD A MORE RESILIENT COMPANY. THERE'S NO DOUBT ABOUT IT, RIGHT? 
          >> MY JOB IS TO KEEP THE LIGHTS ON, COUNCILWOMAN, PERIOD. 
          >> GARCIA: ABSOLUTELY. >> I'M NOT IN THIS ROLE IF I CAN'T DO THAT SUCCESSFULLY. I THINK THE MAYOR I THINK ALLUDED TO IT WELL. 
          IT'S JUST THE PACE AT WHICH WE CAN GET THINGS DONE, CHANGES DEPENDING UPON WHAT KIND OF CHANGES OF INFLUXES WE GET. WHETHER IT'S FROM OUR CURRENT RATES OR FROM FUTURE RATES, WHATEVER. YOU KNOW, WE -- EVERY DOLLAR WE GET IN, WE'RE GOING TO CHANGE OUT OLD POLES, WE'RE GOING TO TRIM MORE TREES, WE'RE GOING TO DO THE THINGS THAT WE DO TO CREATE A RELIABLE SYSTEM. IT JUST MEANS WHEN WE DO GET MORE RESOURCES, WE 
          CAN DO MORE OF THE THINGS WE'RE ALREADY DOING. >> GARCIA: YES. 
          I AGREE. AND BY THE WAY, YOUR URI COMMITMENT, I WENT OVER AND LOOKED OVER ALL OF THE URI COMMITMENTS, YOU ALL COMPLETED THEM WITHIN 
          A YEAR. >> YES, MA'AM. >> GARCIA: I DO THINK Y'ALL ARE DOING A GREAT JOB AND I WANT TO APPRECIATE THAT YOU ALL HAVE THOSE COMBINED LESSONS LEARNED AND THOSE ARE PROBABLY SOME OF THE LESSONS LEARNED THAT ARE GOING INTO THE PLAN. SO, AGAIN, IT'S NOTHING ABOUT CPS ENERGY AND WHETHER YOU ALL NEED MORE MONEY. 
          THERE'S NO CASE ABOUT THAT. I THINK YOU ALL NEED MORE MONEY, RIGHT? BUT THEN IT'S ALSO BALANCING THE IMMEDIATE NEEDS OF MY RESIDENTS. I HAVE A DIRECT SAY IN WHAT PROJECTS GET DONE IN MY DISTRICT. I DON'T NECESSARILY HAVE A DIRECT SAY IN THE PROJECTS THAT ARE GETTING DONE, SO I JUST WANTED YOU ALL TO UNDERSTAND THAT. BUT I DO THINK THAT YOU ALL ARE DOING A GOOD JOB, AND THAT'S WHY I WANTED TO HAVE THE DISCUSSION BEFORE TO SEE HOW MUCH DOES $15 MILLION REALLY HELP YOU ALL. SO, THANK YOU. 
          THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ROCHA 
          GARCIA. COUNCILMEMBER VIAGRAN? >> VIAGRAN: THANK YOU. 
          I WANT TO THANK ELAINA FOR HER PRESENTATION. I AND I WANT TO THANK THE CITY MANAGER AND HIS OFFICE FOR MAKING SURE WE GOT THIS INFORMATION. 
          WHEN I SAW THE ANNOUNCEMENT, I WAS REALLY EXCITED AND I WANTED TO MAKE SURE THAT THE PUBLIC KNEW THAT THIS WAS GOING INTO THE STRATEGIES THAT WE HAD, THE OBJECTIVES TO MAKE SURE THAT WE REACHED OUR GOAL. SO THANK YOU FOR THE PRESENTATION. 
          CONGRATULATIONS. I'M HOPING THIS IS ONE OF OTHER GRANTS THAT WE CAN LOOK FORWARD TO. IN TERMS OF THE CPS FINANCIAL POLICY, I DID SIGN ON TO THE CCR, AND I WANT TO THANK COUNCILWOMAN CABELLO HAVRDA FOR PUTTING IT FORWARD, BECAUSE I THINK IT WAS IMPORTANT WE HAD A CONVERSATION AND SEE IF THERE WAS A POSSIBILITY TO MAYBE MOVE THAT RATE INCREASE DOWN THE ROAD. AND TROY AND BEN, I APPRECIATE YOUR EFFORTS TO SAY WE CAN'T -- WE CANNOT GUARANTEE THAT WE'RE GOING TO SEE THE INCREASES WE'VE HAD, EVEN THOUGH WE KNOW WHERE THE CLIMATE IS AND WHERE ERCOT IS. UNTIL THEY GET STRAIGHTENED OUT, WE JUST DON'T KNOW. AND IT IS TOO QUESTIONABLE. 
          SO I'M GLAD WE DID THAT, BUT WHEN I SAW WHAT CAME OUT OF THE CCR, I WANTED TO START THESE CONVERSATIONS REALLY EARLY BECAUSE I HAVE A LOT OF IDEAS IN TERMS OF WHAT TO DO WITH THE EXCESS FUND. 
          SO I'M GOING TO GIVE YOU MY IDEAS, BECAUSE THAT'S WHAT Y'ALL WANT. 
          SO I THINK 20% FOR REES, 20% FOR STREETS AND ALLEYS, 20% FOR HOUSING. 
          NOW, I'M WILLING TO GIVE CPS PROGRAMMING UP TO 30%, BUT THAT'S ONLY IF WE AS CITY COUNCIL CAN HAVE A SAY, BECAUSE I WOULD LIKE PART OF THAT TO GO TO A PROGRAM FOR OUR CONSTRUCTION MITIGATION, BECAUSE WHAT WE DO IS WE HAVE BUSINESSES THAT ARE STILL PAYING THEIR ELECTRIC BILLS, AND MAYBE WE CAN HAVE CPS WORK OUT A PROGRAM TO -- TO ADJUST THAT. I KNOW YOU GET THEM ON A PLAN CURRENTLY, BUT MAYBE IF WE CAN DO SOMETHING WHERE -- I HAVE A HAIR DRESSER, SHE'S NOT GETTING THE CLIENTS SHE WANTED BUT SHE HAS TO KEEP THE LIGHTS ON FOR THAT ONE WALK-IN. HOW CAN WE HELP HER WITH HER BILL? AND THEN I WOULD LIKE TO LEAVE THE 10% FOR THE AMENDMENTS BECAUSE I THINK ABOUT THE BOYS AND GIRLS CLUB THAT CAME IN AND IF WE HADN'T HAD THAT EXCESS, WOULD WE HAVE BEEN ABLE TO FUND THEM? I ALSO THINK ABOUT CRIT THAT CAME IN AND MADE A REQUEST. AND SOME OF OUR NONPROFITS ARE GOING TO SEE A STRUGGLE. AND AS WE WORK THAT OUT, THAT'S WHAT I WOULD LIKE TO SEE. SO I MEAN, I UNDERSTAND THAT THIS IS -- THAT WE PIER NOT ALWAYS GOING TO HAVE -- WE'RE NOT ALWAYS GOING TO HAVE THE EXCESS AND I LIKE HAVING THE CONVERSATION THAT THE CITY STAFF ALREADY KNOWS WHERE THE CITY COUNCIL WOULD LIKE TO SEE THOSE FUNDS GO, BUT I THINK THAT'S WHY WE NEEDED TO HAVE THIS CONVERSATION HERE AND NOT IN APRIL BECAUSE THIS IS WHERE YOU CAN REMIND ME WHEN I'M 
          [01:00:05]
LIKE, NO, LET'S -- YOU KNOW, WHEN SOMEBODY SAYS, HEY, NO, LET'S HAVE A BIG PARTY OR LET ME GIVE IT TO THIS ONE GROUP, YOU CAN REMIND US, YOU SAID YOU WANTED IT FOR HOUSING, COUNCILWOMAN. SO I'M GOING ON THE RECORD SAYING THESE ARE -- THESE ARE THE PROGRAMS I WOULD LIKE TO SEE ANY EXCESS FUND GO TO. THANK YOU. 
          >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER VIAGRAN. 
          COUNCILMEMBER ALDARETE GAVITO. >> GAVITO: THANK YOU, MAYOR.  REALLY QUICK, I JUST HAD THREE QUICK QUESTIONS. 
          I DID WANT TO THANK YOU, COUNCILWOMAN CABELLO HAVRDA, FOR BRINGING THIS TO A DISCUSSION. ALSO THANK YOU TO DR. COUNCILWOMAN ROCHA GARCIA FOR PUSHING IT THROUGH A DISCUSSION FOR ALL OF US. 
          I APPRECIATE THAT, AND THANK Y'ALL SO MUCH FOR THE PRESENTATIONS. 
          MY QUESTIONS ARE A LITTLE BIT MORE TACTICAL TO THE PRESENTATION, SO, BEN, I HAD A QUESTION ON SLIDE 3. TO THE MAYOR'S EARLIER COMMENTS THAT OUR FUNDING -- AND ESPECIALLY THE EXCESS IN FUNDING, IS NOT GUARANTEED, THAT WHEN IT'S SAYING THE CITY RECEIVES PAYMENT UP TO 14% TRANSFERRED TO THE GENERAL FUND, EVEN THAT 14% IS NOT GUARANTEED, 
          CORRECT? >> GORZELL: SO OUR RATE IS 14%, BUT THERE ARE SOME THINGS THAT THE 14% DOESN'T APPLY TO. SO THAT'S WHY IT'S UP TO 
          14% AMOUNT. >> GAVITO: BUT IT'S STILL NOT GUARANTEED TO THE CITY'S GENERAL FUND, RIGHT? LIKE IF CPS HAS A BAD YEAR -- AND I WAS REFERENCING A CONVERSATION THAT WE HAD 
          EARLIER -- >> GORZELL: SO THE ONLY TIME IT WOULD BE IMPACTED, WHICH I HAVE NOT SEEN HAPPEN, IS THERE'S A FLOW OF FUNDS, DOLLARS COME IN, A BOND INDENTURE, THEY GO TO O & M, THEY GO TO DEBT SERVICE, THERE'S A REQUIRED PAYMENT TO A RECURRING REPLACEMENT ACCOUNT THAT FUNDS CAPITAL, OUR PAYMENT AND ADDITIONAL DOLLARS GO INTO THAT R & R ACCOUNT. IF SOR SOME REASONS REVENUES DECLINED SO MUCH THAT THEY COULDN'T MEET THEIR O & M OBLIGATION, THE DEBT SERVICE AND THE 
          REQUIRED TRANSFER, THEY CAN'T MAKE THE PAYMENT. >> GAVITO: THANK YOU. 
          I'M THINKING OF CPS'S FLOW OF FUNDS. THAT CHART'S STUCK IN MY MIND. SO AFTER CPS GETS RID OF ALL THOSE OTHER PAYMENTS WE MAY TECHNICALLY -- IT'S UNLIKELY BUT THERE COULD BE A SCENARIO WHERE 
          WE WOULDN'T SEE 14%. >> GORZELL: I COULDN'T SAY -- I CERTAINLY WOULDN'T THESE DAYS SAY IT COULDN'T HAPPEN, BUT IT WOULD BE UNLIKELY. 
          I MEAN, AGAIN, THEY'RE TRYING TO SOLVE FOR THINGS THAT SHOULD MAKE SURE THERE'S ADEQUATE CASH FLOW COMING IN, SO THAT THAT SHOULDN'T HAPPEN, BUT IT -- UNLIKELY, BUT ALWAYS COULD HAPPEN, YES. 
          >> GAVITO: SURE. OKAY. THANK YOU. 
          BUT -- IS YOUR POINT THAT SOMETIMES WE MIGHT NOT MEET THE FORECAST? 
          >> GAVITO: YEAH. >> MAYOR NIRENBERG: I MEAN, I THINK THAT'S -- WE MIGHT NOT MEET THE REVENUE PROJECTION ITSELF. 
          FORGET ABOUT THE 14%, BUT WE MIGHT BE BELOW FORECAST IS WHAT YOU'RE 
          SAYING? >> GORZELL: YEAH. AND THAT IS ALSO -- THAT IS MORE LIKELY TO HAPPEN, AND WE'VE KIND OF SHOWED YOU THE HISTORY COMPARISON AGAINST OUR ADOPTED BUDGET. I THINK WE TEND TO HAVE LOTS OF CONVERSATIONS WHEN THERE'S LOTS OF MONEY ABOVE THE ADOPTED BUDGET, BUT THERE ARE A LOT OF YEARS WHERE WE'RE KIND OF FLAT, THERE'S NOT MUCH ABOVE THE ADOPTED BUDGET AND THERE'S BEEN YEARS WHEN WE'VE COME IN UNDER. OUR FORECAST IS INDEPENDENT OF THAT FLOW OF FUNDS. IT'S WHAT WE SET IN OUR BUDGET, IT'S WHAT WE'RE COUNTING ON TO FUND OUR RECURRING EXPENSES, AND DUE TO ALL THOSE FACTORS WE'VE TALKED ABOUT, WE MAY OR MAY NOT HIT THAT BUDGET. 
          >> GAVITO: SOUNDS GOOD. I JUST WANTED TO MAKE SURE I HAD THAT STRAIGHT IN MY HEAD, SO THANK YOU FOR THAT. ONE OF THE THINGS THAT I'VE HEARD FROM RESIDENTS ARE FEARS ABOUT ANOTHER WINTER STORM URI OR SNOW INDIVIDUAL, WE ALSO GET A LOT OF CALLS  FROM SENIORS WHO HAVE OVERGROWN TREE LIMBS NEAR POWER LINES. SO MY QUESTION, AND IT MIGHT BE MORE GEARED TO CPS, WHAT PERCENTAGE OF THE LAST RATE INCREASE WENT TO RESILIENCY AND RELIABILITY PROJECTS AND ALSO WENT TO REES AND WHAT PERCENT OF FUTURE RATE INCREASES WOULD GO TO THOSE ITEMS AS WELL? 
          >> YEAH, VERY BROAD TERMS -- HELLO, COUNCILWOMAN. 
          GOOD TO SEE YOU AGAIN. >> GAVITO: GOOD TO SEE YOU. 
          >> VERY BROAD TERMS THERE'S AN INCREMENTAL 30ISH YOU COULD GO IN A MORE NARROW PERSPECTIVE, BUT I WOULD ARGUE WHAT WE DO CAPITAL AND O AND M IS ABOVE THE SPEND. VEGETATION MANAGEMENT, WHICH WE TALKED ABOUT TREE TRIMMING, SPECIFIC DOLLARS IN THAT REQUEST WENT TO RECLOSURES, WHICH BEN TALKED ABOUT EARLIER AND THAT'S SPECIFICALLY RELATED TO RESILIENCY. 
          SO THERE'S A LARGE LIST OF THINGS, BUT IT WAS SIGNIFICANT. 
          >> GAVITO: OKAY. SO WHAT I'M HEARING YOU SAY IS THAT THERE IS A GOOD CHUNK OF THE RATE INCREASE FUNDING THAT GOES THROUGH THESE -- 
          >> ABSOLUTELY, YEAH. >> GAVITO: OKAY. AND THEN MY FINAL QUESTION IS FOR YOU, ELAINE. FIRST OFF, WELCOME, AND 
          [01:05:04]
THANK YOU SO MUCH FOR THAT PRESENTATION. IS GRIP THE ONLY OPPORTUNITY THAT THE FEDERAL   -- FOR FEDERAL GRANTS THAT WE'RE GOING AFTER, AND WHAT OTHER GRANT OPPORTUNITIES HAS CPS GONE FOR AND KIND OF 
          WHAT'S OUR WIN/LOSS RATIO? >> RIGHT NOW WE HAVE TWO GRANTS IN PLAY WITH THE IRA, THE GRANT -- THE GRIP GRANT THAT WE JUST SPOKE ABOUT  THAT WE'VE BEEN CONDITIONALLY AWARDED. 
          WE ALSO HAVE AN EVIE GRANT THAT'S TIED TO EV INFRASTRUCTURE THAT WE HAVE IN PLAY. WE'RE CONTINUING TO CANVASS ALL OF THE IRA OPPORTUNITIES AND WE HAVEN'T MENTIONED THIS, BUT THERE ARE PERSPECTIVELY SOME STATE LOAN PROGRAMS THEY MAY COME TO FRUITION AND WE'RE CONSTANTLY LOOKING FOR THOSE OPPORTUNITIES. ULTIMATELY WHAT WE WANT TO DO AS RUDY SHARED, WE WANT TO LOWER COSTS BUT WE ALSO WANT TO ACCELERATE THE WORK ON OUR GRID TRANSFORMATION AND WE'RE SEEKING OPPORTUNITIES FOR THOSE. BUT RIGHT NOW WE HAVE THOSE TWO IN PLAY. 
          >> GAVITO: AWESOME. THANK YOU. MAYOR. 
          >> MAYOR NIRENBERG: THANK YOU. COUNCILMEMBER 
          MCKEE-RODRIGUEZ? >> MCKEE-RODRIGUEZ: THANK YOU, MAYOR, AND THANK YOU FOR THE PRESENTATION. I DID SIGN -- I'LL TALK ABOUT -- I'LL PRIMARILY BE TALKING ABOUT THE FINANCIAL POLICY. I DID SIGN THE CCR AND IT'S MUCH TO COUNCILMAN CABELLO HAVRDA'S CREDIT THAT WE'RE HAVING THIS CONVERSATION. I THINK WE'VE BEEN BUILDING UP TO FOR QUITE SOME TIME NOW. IN REGARD TO THE ORIGINAL CCR, AND I FIND TWO TO THREE PURPOSES, REALLY, WITHIN IT. ONE IS TO IMPROVE CPS ENERGY'S RESILIENCY AND RELIABILITY. I DO SEE THIS REFLECTED IN THE RECOMMENDATION. AND ONE-TIME REVENUE DOES ALLOW FOR ONE-TIME INVESTMENTS SO IT'S A NATURAL FIT THERE. I THINK THIS RECOMMENDATION ALSO WOULD HAVE ELIMINATED A BIT OF THE CONFLICT FROM LAST YEAR REGARDING UNEXPECTED REVENUE AND WHAT WE DO WITH IT. 
          THIS -- THAT SOMEWHAT -- AND THIS SPECIFIC RECOMMENDATION DOES SOMEWHAT DO WHAT I WANTED TO DO WITH THE WIND FALL OF LAST YEAR WHICH WAS IT DOES NOT, HOWEVER, ADDRESS PURPOSE TWO OR THREE, WHICH IS TO CPS ENERGY'S NEED TO -- REDUCING CPS ENERGY'S NEED TO REQUEST A RATE INCREASE. THERE'S A LOT OF R WORDS. 
          WHICH WAS ONE OF MY PRIMARY REASONS FOR PROPOSING COUNCILWOMAN CABELLO HAVRDA'S PROPOSAL AND SIGNING THE CCR. I DON'T MIND THE KIND OF CONFLICT EARLIER, I THRIVE IN IT, BUT I AM CONCERNED THIS GOAL WILL NOT BE MET TO PREVENT THE RATE INCREASES. 
          IN THINKING ABOUT THAT, I'M THINKING ABOUT OUR MOST VULNERABLE RESIDENTS WHO ARE GOING TO FEEL THE IMPACT OF A RATE INCREASE MORE THAN ANYBODY ELSE AND THEY ALSO FEEL THE IMPACT OF CLIMATE CHANGE MORE THAN ANYBODY ELSE. AS WE APPROACH THESE COLDER MONTHS THEY ARE GOING TO BE FEELING IT SO MUCH MORE, JUST LIKE THEY DID IN THE HEAT OF THE SUMMER. FOR STAFF, MY INTERPRETATION OF THIS IS YOU'RE LOOKING FOR A RECOMMENDATION SO THOSE PERCENTAGES THAT WE WERE TALKING ABOUT, THE -- PERFECT. 
          OKAY. TO START ONE, IT WOULD BE REALLY CHALLENGING FOR ME TO SUPPORT A RATE INCREASE WITH THE SAME STRUCTURE THAT PLACES A BURDEN ON SMALLER CUSTOMERS AND SO I WANT YOU TO REFLECT ON THAT AND THINK ABOUT ALL THE WAYS WE CAN REDUCE THAT BURDEN. I WOULD LOVE TO HAVE A ONE-ON-ONE CHAT FAIRLY SOON. TWO IS I WOULD LOVE TO KNOW WHAT YOU DID WITH THE UNEXPECTED REVENUE FROM THE PAST FEW YEARS, SPECIFICALLY WHAT INVESTMENTS WERE MADE AND WHAT ARE THE EXPECTED IMPACTS. WE'RE TALKING ABOUT RETURNING A SIGNIFICANT PORTION TO YOU. 
          AND WHAT I WOULD LOOK FOR SPECIFICALLY WITH THE BREAKDOWN WOULD BE MAYBE 50% GOING TO CPS ENERGY -- AND I WOULD MOST PREFER IT GO TO HOME WEATHERIZATION. 
          MAYBE 30% GOING TO THE CITY FOR STREETS AND OTHER CITY INFRASTRUCTURE, LIKE DRAINAGE. 
          I THINK THAT'S A VERY APPROPRIATE NEED HERE. AND THEN 20% POSSIBLY TO CITY'S REES FUND. I'M PRETTY FLEXIBLE IN TERMS OF WHERE IT CAN GO BUT I APPRECIATE THE CONVERSATION NOW AND I THINK MAYBE -- WHAT I WOULD LIKE TO SEE BEFORE APRIL IS WHAT DID YOU HEAR TODAY? WHAT IS THE BREAKDOWN YOU THINK IS THE CONSENSUS OF COUNCIL MEMBERS? AND THEN BEFORE WE MAKE A DECIDING -- ANY DECISIONS, I WANT TO KNOW THAT THAT ACTUALLY IS THE CONSENSUS AND THAT WE'RE ALL ACTUALLY HAPPY WITH IT. 
          AND I WONDER IF WE MIGHT, AS A COUNCIL, FOCUS ON WHAT THAT BREAKDOWN LOOKS LIKE, AND I APPRECIATE WHAT I HAVE HEARD SO FAR FROM MY COLLEAGUES. THAT'S ALL OF MY COMMENTS. 
          THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER 
          MCKEE-RODRIGUEZ. COUNCILMEMBER CASTILLO. >> CASTILLO: THANK YOU, MAYOR. THANK YOU, BEN, RUDY FOR THE PRESENTATIONS. 
          I WENT BACK AND LISTENED TO THE GOVERNANCE COMMITTEE MEETINGS TO HAVE AN UNDERSTANDING IN PREPARATION FOR THIS MEETING ABOUT THE DISCUSSION THAT TOOK PLACE AND I APPRECIATE THE CONVERSATION THAT TOOK PLACE IN EXPLORING AND POTENTIALLY NOT PRESENTING A RATE INCREASE TO OUR CONSTITUENTS. BUT LOOKING AT THE RECOMMENDATION AND HEARING THAT 
          [01:10:03]
IT'S NOT GOING TO GUARANTEE THAT THERE WILL NOT BE A RATE INCREASE, IT MAKES ME UNCOMFORTABLE. BECAUSE, BASED OFF THE CONVERSATION, THE EXCESS THAT WE RECEIVE IS -- GOES BACK TO THE SHAREHOLDERS, WHICH IS THE RATEPAYERS. 
          OUR CONSTITUENTS SHOULD SEE THAT BENEFIT THROUGH THE COSA BUDGET. 
          I THINK THIS SUMMER I HAD A CONSTITUENT, HER NAME IS SHIRLEY, AND SHE REACHED OUT -- IT'S A HOUSE FULL OF SENIORS AND IT WAS TOO HOT. SHE WAS LIKE IS THERE RESOURCES FOR ME TO GET CONNECTED TO A PLACE WITH AN AC? I SAID WE HAVE THESE COOLING CENTERS. SHE SAID, NO, OVERNIGHT. THE ONLY ALTERNATIVE WE HAD TO OFFER WAS HAVEN FOR HOPE. WHEN I THINK ABOUT RESILIENCY AND THE CONVERSATION AROUND FUNDING RESILIENCY, I THINK ABOUT COSA RESILIENCY. WHERE OUR CONSTITUENTS GET TO SEE THAT BENEFIT IN THEIR NEIGHBORHOODS. FURTHER, WHAT WE'VE SEEN ALL THROUGHOUT THE SUMMER WAS AN INCREASE IN BUSTED PIPES. BECAUSE WE KNOW IT'S ONLY GOING TO GET HOTTER. AND I WANT TO CHALLENGE THE NOTION THAT THIS IS ABNORMAL -- BECAUSE I THINK THIS ABNORMAL IS THE NEW NORMAL. WHEN WE LOOK AT THE LAST BUDGET, THE 2023 BUDGET AND THE 2024, WE RECEIVED ROUGHLY THE SAME AMOUNT OF EXCESS FROM CPS. THE ONLY DIFFERENCE WAS WITH THIS BUDGET, SOME WAS ALREADY ALLOCATED AND WE HAD A CONVERSATION AROUND A FEW MILLION DOLLARS, ABOUT WHAT TO DO. SO THIS IS NUMBERS THAT WE'VE SEEN BEFORE AND I BELIEVE WE NEED TO ANTICIPATE HOW TO ENSURE THAT WE'RE MATERIALLY IMPROVING THE LIVES OF OUR CONSTITUENCY. GOING BACK TO THE DRAINAGE COST. 
          I HAVE SOME NUMBERS -- LIKE IN GENERAL FOR THE CITY OF SAN ANTONIO, $2.4 BILLION FOR STREETS, BRIDGES, AND SIDEWALK IMPROVEMENTS ARE NEEDED. AGAIN, WITH THE HEAT, WE'RE JUST SEEING MORE BUSTED STREETS BECAUSE OF THE INFRASTRUCTURE, BECAUSE IT'S TOO HOT AND THE CLAY AND SO MANY OTHER FACTORS. AND THESE ARE THINGS THAT MY CONSTITUENTS WILL CALL EVERY DAY ABOUT THE NEED FOR ONE OF THESE IMPROVEMENTS. 
          FURTHER, AS MANY OF MY COLLEAGUES HAVE MENTIONED, THE NEED TO INVEST IN FLOOD CONTROL. WE KNOW THE WEATHER'S GOING TO ONLY GET MORE EXTREME AND WE DON'T HAVE THE COSA INFRASTRUCTURE TO ENSURE THAT SAN ANTONIO RESIDENTS HAVE A PLACE TO GO, WHETHER IT'S EXTREME HEAT OR COLD. I THINK ABOUT THE GENERAL FUND AND WE ARE HAVING CONVERSATIONS ABOUT COMPRESSION. AFSCME IS ASKING HOW ARE WE GOING TO SUPPORT AND ADDRESS COMPRESSION. WHILE I UNDERSTAND THAT STAFF'S RECOMMENDATION SHARES THAT THERE'S NOT GOING TO BE AN IMPACT TO THE GENERAL FUND, THERE'S SO MANY NEEDS THAT OUR CONSTITUENTS AND OUR CITY EMPLOYEES REQUEST AND SHIFTING THOSE DOLLARS BACK I THINK IS JUST NOT A PROPOSAL. I'M SUPPORTIVE OF. 
          THE ADDITIONAL FUNDS ARE FUNDS THAT SHOULD GO TO COSA RESILIENCY. 
          FURTHER, RUDY, WOULD YOU BE ABLE TO SHARE HOW MUCH CPS ALSO RECEIVED? I WANT TO MAKE SURE THAT IT'S CLEAR IT'S NOT JUST THE CITY OF SAN ANTONIO THAT RECEIVED INCREASE OF FUNDS. CPS ALSO RECEIVED AN INCREASE, CORRECT? 
          >> SORRY ABOUT THAT. HOPE WE'RE ALL AWAKE. SO, COUNCILWOMAN, THERE'S ACTUALLY DIFFERENT SCENARIOS ON HOW WE RECEIVE FUNDS RELATIVE TO HOW THE CITY DOES. 
          THIS YEAR, ONE OF THE DRIVERS, MAIN DRIVER WAS THE OFF-SYSTEM SALES THAT THE MAYOR MENTIONED EARLIER. LAST YEAR NATURAL GAS PRICES WENT INCREDIBLY HIGH, BASED ON THE WAR IN UKRAINE. AND FUEL IS MERELY A PASS THROUGH TO US. 
          CITY PAYMENT IS TACKED ON TO FUEL. THE CITY SAW THAT. 
          THIS YEAR -- >> CASTILLO: I GUESS FOR CLARIFICATION, WITH THE OFF-SYSTEM SALE AND INCREASE OF USES FOR THIS BUDGET, WHAT WAS THE TOTAL THAT CPS RECEIVED 
          FROM THE OFF-SYSTEM SALES? >> SO IT WAS IN EXCESS OF $100 MILLION. 
          YOU KNOW, WE BROUGHT IN WHOLESALE REVENUE. WE WILL SHOW YOU AN ACCOUNTING 
          OF WHAT WE'RE DOING WITH THAT. >> CASTILLO: AGAIN, I HEAR THE CONCERNS AND NEED FOR CPS RESILIENCY BUT I NEED TO SEE A BREAKDOWN OF THE COSTS FOR EACH BUCKET OF WHAT EACH PIECE COSTS. ESPECIALLY HOW IT TIES INTO THIS CONVERSATION. 
          I UNDERSTAND THEY'RE SOMEWHAT SEPARATE BUT I JUST NEED TO SEE THOSE NUMBERS. 
          I THINK IT WOULD BE HELPFUL FOR THE NEXT BRIEFING, IF WE CAN HAVE THAT LINE ITEM BREAKDOWN 
          IT WOULD BE HELPFUL. >> WE'LL SHOW YOU THAT. >> CASTILLO: THANK YOU. 
          I THINK IT'S IMPORTANT TO BE CLEAR IT'S NOT JUST THE CITY OF SAN ANTONIO THAT'S RECEIVING AN 
          [01:15:01]
INCREASE. CPS ENERGY ALSO HAS STATED $100 MILLION. 
          AND WE NEED TO KNOW WHERE THAT'S GOING BEFORE WE OFFER TO GIVE OUR CONSTITUENT MONEY TO CPS ENERGY. I GUESS, AGAIN, CAN SOMEONE REITERATE IF THIS IS GOING TO GUARANTEE THAT THERE WILL NOT BE A RATE INCREASE WITHIN THE NEXT FIVE YEARS OR A REQUEST 
          FOR A RATE INCREASE? >> WALSH: NO, IT'S NOT GOING TO GUARANTEE THAT AT ALL. 
          >> CASTILLO: I UNDERSTAND THE REQUEST TO EXPLORE THIS BUT JUST AS PROPOSED -- I APPRECIATE THE CITY STAFF'S RECOMMENDATION AND WORK. BUT AS COUNCILWOMAN VIAGRAN POINTED OUT, COUNCILWOMAN ROCHA GARCIA AND MCKEE-RODRIGUEZ, THERE ARE SO MANY INFRASTRUCTURE NEEDS IN OUR COMMUNITY FROM RESILIENCY CENTERS TO HELPING SMALL BUSINESSES RETROFIT THEIR BUILDINGS TO WITHSTAND THESE CONDITIONS AND SO MUCH MORE. 
          I DON'T THINK WITHOUT SEEING WHAT THE $100 MILLION IN EXCESS CPS RECEIVED, WHERE THAT'S GOING, I FEEL COMFORTABLE RETURNING MY CONSTITUENTS' MONEY TO CPS, TO THEN COME BACK 
          FOR A RATE INCREASE. THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK 
          YOU, COUNCILMEMBER CASTILLO. COUNCILMEMBER KAUR. >> KAUR: THANK YOU, MAYOR. 
          THANK YOU, CITY STAFF FOR THIS PRESENTATION AND THANK YOU TO CPS ENERGY. 
          I HAVE A QUESTION ON THE 80/20 BREAKDOWN. CAN YOU SHARE A LITTLE HOW YOU 
          ALL CAME UP WITH THAT RECOMMENDATION? >> SO, COUNCILWOMAN, WE LOOKED AT A COUPLE -- 
          [LAUGHTER] >> KAUR: IT'S FINE. >> COUNCILWOMAN, WE TRIED TO LOOK AT A COUPLE OF THINGS IN TERMS OF PRIORITIES THAT THE COUNCIL HAD LAID OUT PRIOR IN PREVIOUS BUDGETS. ONE WAS THE REES FUND. IT GOT CREATED IN THE PRIOR BUDGET USING PART OF OUR CITY PAYMENT, ALLOCATING THAT IN THOSE FOUR PRIORITY AREAS THAT WE TALKED ABOUT. THE OTHER WAS TRYING TO HIT THE OBJECTIVE THAT WAS IN THE CCR OF TAKING PART OF OUR CITY PAYMENT AND REINVESTING IT INTO CPS'S RESILIENCY AND RELIABILITY PROJECTS. THERE WAS NO MAGIC AROUND THE 80/20. 
          WE LOOKED AT WHERE THE CCR OBJECTIVES AND INTENTS WERE AND TRIED TO BALANCE THAT AGAINST THE RESILIENCY AND RELIABILITY NEEDS THAT WE HAVE ON OUR SIDE. 
          >> KAUR: FROM MY POINT, I THINK IT MAKES A LOT OF SENSE THAT WE'RE GETTING THIS EXTRA FUNDING BECAUSE OF CLIMATE CHANGE THAT'S HAPPENING, AND ALL OF US MENTIONED WE'RE GOING TO CONTINUE TO SEE SUMMERS LIKE THIS. IT WAS THE COLDEST WINTER, HALLOWEEN THAT WE HAVE SEEN IN A LONG TIME. CLIMATE CHANGE IS HAPPENING AND SO I THINK IT'S VERY LOGICAL THAT OUR GOAL IS THE EXCESS MONEY THAT WE'RE GETTING FROM THIS GOES TO SOME FORM OF RESILIENCY. I THINK WHAT YOU'RE HEARING FROM US IS A MIXED OPINION OF HOW THAT SHOULD BE SPLIT UP. THERE'S A LOT OF QUESTION FROM OUR DISTRICT MEMBERS ON WHERE THAT FUNDING GOES TO. I HEARD THE CONVERSATION -- THIS IS MY FIRST BUDGET CYCLE AND IT'S SO TEMPTING, DURING THE AMENDMENTS, TO GO TO THE THING THAT'S THE MOST PRESENT IN FRONT OF YOU AT THE SAME TIME. 
          YES, OUR DELEGATIONS ARE SUPER IMPORTANT AND ALL OF THE WORK THAT HAPPENS IS SO IMPORTANT BUT IF WE COULD STAMP THIS MONEY SHOULD GO TOWARDS SOME SORT OF RESILIENCY, ECONOMIC SUSTAINABILITY IN THE FUTURE, THAT I THINK WOULD BE A GREAT FIRST STEP. 
          THEN THE QUESTION COMES DOWN TO HOW IT'S SPLIT UP. THAT'S WHY I WAS ASKING ABOUT THE 80/20 SPLIT. WE'RE TRYING A LOT OF THINGS IN THE REES FUND THAT I WOULD CALL PILOTS. THERE'S THE WEATHERIZATION WHERE WE'RE GOING TO TRY TO BUILD UP FOUNDATIONS AND STUFF SO THAT WE COULD WEATHERIZE HOMES WITHIN THE CPS PROGRAM. 
          THERE'S THE PILOT PROGRAM TO GIVE INCENTIVES TO BUSINESSES BECAUSE ONE OF THE CHALLENGES WAS HOW DO WE CONVINCE BUSINESSES TO ACTUALLY DO MORE WITH SUSTAINABILITY. 
          SO I'D LIKE TO SEE, OVER THE NEXT SIX TO EIGHT MONTHS, WHICH OF THOSE REES PROGRAMS DO REALLY WELL, WHICH ONE HAS A SIGNIFICANT IMPACT ON SUSTAINABILITY SO WE COULD SEE WHAT WE COULD TRY TO GROW. AND THEN FROM THE 80%, I THINK THE WORRY IS WE DON'T KNOW WHERE THAT FUNDING IS GOING. SO COMING FROM A PREVIOUS CITY THAT I LIVED IN, I LOVE THIS PARTNERSHIP WITH CPS ENERGY. NOT ALL CITIES HAVE THAT AND SO WE TRUST THE WORK THAT YOU DO. 
          WE APPRECIATE THE WORK THAT YOU DO AND IT'S STILL REALLY HARD TO KNOW WHAT DOES THIS 80% IN RESILIENCY MEAN? IS IT REPLACING A POLE? IS THAT GOING TO BE THE BIGGEST IMPACT OR IS IT CREATING MORE SHADE TREES AND STRONGER INFRASTRUCTURE? COULD WE SEE A LIST OF WHAT YOU ALL COULD PROPOSE THE 80% THAT'S GOING TO CPS WOULD BE ALLOCATED FOR. WHAT WOULD BE THE HIGHEST LEVERAGE RESILIENCY TACTICS 
          [01:20:05]
Y'ALL WOULD USE? AND FROMM A CITY'S PERSPECTIVE WHAT ARE SOME PROJECTS ON SUSTAINABILITY THAT ARE GOING TO MAKE THE MOST IMPACT? I WOULD PUSH US TO THINK ABOUT KEEPING THESE FUNDS THAT ARE COMING AS A RESULT OF CLIMATE CHANGE, DEDICATED TO WHERE IT'S ADDRESSING THAT FROM A SUSTAINABILITY PURPOSE. THANKS, MAYOR. 
          >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER KAUR. COUNCILMEMBER WHYTE. 
          >> WHYTE: ALL RIGHT. BEFORE I GET GOING ON MY THOUGHTS ON THIS, BEN. 
          ON THAT PIE CHART, OVER ON THE LIST ON THE RIGHT-HAND SIDE, YOU'VE GOT TRANSFERS FOR 
          $24.8 MILLION. WHAT'S THAT? >> GOOD AFTERNOON, MAYOR AND COUNCIL. IT'S A LIST OF SEVERAL ITEMS. SOME OF THEM OR THE MAJORITY OF THEM ARE ONE-TIME PROJECTS, LIKE CAPITAL PROJECTS BEING FUNDED OUT OF THE GENERAL FUND. PARKS IMPROVEMENTS. YOU MAY RECALL YOU APPROVED $3.5 MILLION FOR THE SHADES OVER THE PLAYGROUNDS. THAT'S AN EXAMPLE OF THOSE TRANSFERS. WE ALSO HAVE STREET MAINTENANCE TRANSFERS THAT ARE TRANSFERRED 
          TO THE CAPITAL BUDGET -- >> WHYTE: SO A BUNCH OF STUFF'S IN THERE. 
          AND AGENCIES THAT'S ON THERE, IS THAT THE DELEGATE AGENCIES? >> VILLAGOMEZ: YES. 
          >> WHYTE: THAT'S LIKE A PROSPER WEST KIND OF THING? >> VILLAGOMEZ: THOSE ARE AGENCIES LIKE THE AFTER SCHOOL PROGRAM, HAVEN FOR HOPE, CENTER FOR HEALTHCARE SERVICES, THOSE 
          TYPE OF DELEGATE AGENCIES. >> WHYTE: WHERE DOES A GROUP LIKE PROSPER WEST, WHERE DO 
          THEY FIT IN? >> VILLAGOMEZ: THEY FIT IN UNDER THE BUDGET FOR ECONOMIC 
          DEVELOPMENT. >> WHYTE: IS THAT IN ONE OF THESE CATEGORIES HERE? 
          >> VILLAGOMEZ: IT WILL BE ON THE RIGHT-HAND SIDE OF THAT PIE CHART. 
          THEY'RE IN ALPHABETICAL ORDER, I BELIEVE. >> WHYTE: OKAY. 
          SO IT'S ON THAT LIST. >> VILLAGOMEZ: YES. >> WHYTE: THANK YOU. 
          SO HERE'S MY TAKE ON THIS. I THINK -- FIRST OF ALL, THANK YOU TO COUNCILWOMAN CABELLO HAVRDA. I LOVE THE PROPOSAL AND I AM HAPPY THAT IT IS SPARKING THIS DISCUSSION. AND I DON'T WANT US TO MISS THIS OPPORTUNITY BECAUSE WHAT I THINK WE CAN DO FROM HERE IS GO BACK AND LOOK AT THE ENTIRE BUDGET. 
          YOU KNOW, THE PROPOSAL TALKS ABOUT 2% TO 3% OF CPS REVENUE GOING BACK. 
          FOR ME, I SORT OF LIKE THE 2%. SO THAT'S $60 MILLION, IF WE GO OFF OF WHAT WE JUST DID. 
          WE HAVEN'T EVEN HAD A DISCUSSION ABOUT, WELL, WHERE WOULD WE TAKE THE $60 MILLION FROM? AND SO I WOULD LOVE TO SEE THAT DISCUSSION. 
          IF WE HAD TO CUT $60 MILLION FROM THIS BUDGET, WHERE WOULD WE DO IT? IT'S MY HUNCH THAT WE WOULD BE ABLE TO CUT $60 MILLION FROM THIS BUDGET, WE WOULD BE ABLE TO FIND THAT $60 MILLION AND WE'D BE JUST FINE. ALL THE ESSENTIAL SERVICES THAT WE'RE PROVIDING OUR CITIZENS, WE WOULD BE ABLE TO DO IT. I THINK THERE'S PLENTY OF AREAS DOWN THAT RIGHT SIDE OF THAT LIST, NEXT TO THE PIE CHART, WHERE WE COULD CUT MONEY AND BE JUST FINE. SO, AGAIN, WE'RE HAVING THIS DISCUSSION NOW BUT WE'RE NOT REALLY TALKING ABOUT THE INITIAL PROPOSAL IN THE CCR. AND SO MY REQUEST WOULD BE LET'S GO BACK, LOOK AT THE BUDGET, AND SEE IF WE WERE GOING TO CUT $60 MILLION, WHERE WOULD IT BE? I THINK THAT WOULD BE A REALLY USEFUL EXERCISE. 
          YOU KNOW, IN TERMS OF GIVING MONEY BACK TO CPS, FOR ME, I'D LIKE TO SEE OUR DOLLARS SPENT MORE ON INFRASTRUCTURE. AS WE'VE HEARD TODAY, SIDEWALKS, STREETS, DRAINAGE, ABSOLUTELY WOULD LOVE TO SEE MORE OF OUR MONEY SPENT THERE. BUT WHEN WE'RE TALKING ABOUT A PROPOSAL OF INVESTING IN CPS'S INFRASTRUCTURE, I LIKE THE IDEA OF THAT AS WELL. 
          AND IF WE CAN -- YOU KNOW, THIS RATE INCREASE THAT'S COMING THAT WE'RE GOING TO TALK ABOUT, ALREADY BOTHERS ME AND WE HAVEN'T EVEN REALLY GOTTEN INTO THAT CONVERSATION YET. 
          BUT TO ME, YOU KNOW, WE JUST PASSED THE PROPERTY TAX, THE HOMESTEAD EXEMPTION TO GIVE 
          [01:25:04]
SOME FOLKS SOME PROPERTY TAX RELIEF. BUT THEN WE'RE NOW HITTING THEM WITH -- WE HAVE AN INCREASE WITH THE BIGGER GARBAGE CANS. THEY'RE GOING TO HAVE TO PAY AN EXTRA FEE THERE AND NOW WE'RE TALKING ABOUT HITTING THESE SAME FOLKS AGAIN WITH A RATE INCREASE FOR CPS. SO THEY GET RELIEF ONE PLACE AND THEN WE HIT THEM AGAIN OVER HERE. AND THE NET EFFECT JUST ISN'T DOING WHAT WE'RE TRYING TO DO, WHICH IS FOR ME KEEP MORE MONEY IN OUR TAXPAYERS' POCKETS. AND SO, AGAIN, PART OF THE ATTRACTIVENESS OF THE INITIAL PROPOSAL WAS, YES, LET'S INVEST IN CPS'S INFRASTRUCTURE BECAUSE THAT'S GOING TO BE GOOD FOR CPS IN THE LONG TERM. BUT ALSO LET'S TRY TO ELIMINATE OR AT LEAST LESSEN THIS RATE INCREASE THAT MAY GET PLACED UPON OUR RATEPAYERS. 
          AND WHAT WE'RE HEARING IS THAT THIS -- I GUESS AMENDED PROPOSAL FROM STAFF REALLY ISN'T GOING TO DO THAT. AND SO THAT IS OF CONCERN TO ME. 
          SO, YOU KNOW, ALL OF THAT BEING SAID, IF WE'RE NOT GOING TO DO ANYTHING AND WE'RE JUST GOING TO GO ON PER THE STATUS QUO, I LIKE THE PROPOSAL BECAUSE I WOULD RATHER PUT THIS MONEY INTO CPS'S INFRASTRUCTURE THAN TO SPEND IT ON SOME OF THE OTHER THINGS THAT WE DO BUT I WOULD LIKE TO SEE US TAKE THIS OPPORTUNITY TO LOOK AT THAT BUDGET AS A WHOLE. 
          GO BACK TO THE ORIGINAL CCR'S PROPOSAL AND SEE IF IT'S WORKABLE. 
          AND, YOU KNOW, BUSINESSES ALWAYS LIKE CERTAINTY. AND THE ONE THING ABOUT IS, YOUE DON'T KNOW FROM YEAR TO YEAR IS THERE GOING TO BE EXCESS MONEY, IS THERE NOT. 
          AND THAT'S REALLY NOT GOOD FOR ANYBODY. SO I LIKE COMING UP WITH A HARD NUMBER, IF WE'RE GOING TO DO IT, IF WE'RE GOING TO GIVE SOME MONEY BACK TO CPS, BUT I WOULD LIKE TO SEE US TAKE A LOOK AT THE BUDGET AS A WHOLE, LOOK AT THE ORIGINAL PROPOSAL, AND GO 
          FROM THERE. THANKS. >> MAYOR NIRENBERG: THANK 
          YOU, COUNCILMEMBER WHYTE. COUNCILMEMBER COURAGE. >> COURAGE: THANK YOU, MAYOR. I'D LIKE TO ASK A FEW QUESTIONS AND RUDY OR SOMEBODY FROM YOUR STAFF CAN PROBABLY HELP ME. HOW MANY CPS ENERGY CUSTOMERS TODAY QUALIFY FOR LOWER SUPPORTED RATES OF SOME KIND THROUGH DIFFERENT PROGRAMS WE HAVE? 
          >> 65,000 ARE ON OUR AFFORDABILITY PROGRAM. >> COURAGE: NOW, DOES THAT MEAN THEY ACTUALLY PAY LOWERS COSTS FOR ENERGY THAN THE AVERAGE PERSON MIGHT? 
          >> THEY DO, YES. >> COURAGE: OKAY. BECAUSE I HEARD SEVERAL OF OUR OTHER COUNCIL MEMBERS SAY IF WE'RE GOING TO RAISE RATES IT'S GOING TO HURT A LOT OF OUR PEOPLE. BUT A LOT OF OUR PEOPLE ARE ALREADY GETTING SUBSIDIZED 
          RATES TO HELP THEM AT THIS POINT IN TIME, RIGHT? >> THAT'S CORRECT. 
          >> COURAGE: SO IF WE RAISE THE RATES, THEY WOULD PROBABLY STILL BENEFIT FROM A LOT OF THE 
          SAME PROGRAMS THAT ARE EXISTING, RIGHT? >> THEY WOULD, YEAH. 
          WE'LL TALK ABOUT THAT ON THE 8TH WHEN WE COME TO COUNCIL AROUND THE PROPOSAL HELPING 
          THOSE FOLKS OUT. >> COURAGE: I'M NOT FOR RAISING RATES BUT I'M FOR RECOGNIZING THAT CPS ENERGY HAS TO GROW AND THEY HAVE TO DEVELOP ADDITIONAL ENERGY PRODUCTION. THAT IT NEEDS TO BE CLEANER, LOWER COST, AND RELIABLE ENERGY. AND THAT'S GOING TO COST A LOT OF MONEY. 
          AND THEY ALSO NEED TO MAKE SURE THEY'VE GOT THE KIND OF SYSTEMS THAT OPERATE ALL OF THOSE NEW ENERGY PROGRAMS OR EQUIPMENT. THE CITY RIGHT NOW IS GOING THROUGH UPGRADING ALL OF OUR OWN SOFTWARE. SAP AND SO MANY OTHERS IN OTHER DEPARTMENTS. 
          ALL OF THOSE DEPARTMENTS ARE LOOKING TO HAVE TO EXPEND MILLIONS OF DOLLARS TO UPGRADE ALL OF THAT SIMPLY SO THE CITY CAN CONTINUE TO FUNCTION THE WAY IT NEEDS TO. 
          SO I CAN UNDERSTAND SOME OF WHAT CPS IS SAYING THEY MAY NEED IN A RATE INCREASE. 
          BUT THE ONE THING I WANT TO AVOID IS SOMETHING WE RAN INTO MAYBE 12 YEARS AGO WHEN SAWS CAME AND SAID WE NEED A RATE INCREASE AND WE NEED SEVERAL OF THEM AND WE'RE GOING TO BUY A BIG WATER SYSTEM, AND IT BECAME THE BIG VISTA RIDGE SYSTEM. THEY CONVINCED COUNCIL TO HAVE FIVE DIFFERENT RATE INCREASES AND IT'S GOING TO BE OVER A FIVE, SIX, SEVEN-YEAR PERIOD. 
          AND TODAY SAWS HAS MORE MONEY IN THE BANK IN RESERVE FUNDS THAN THEY EVER NEED TO TAKE CARE OF ALL OUR EXPENSES. SO I'M CAUTIOUS ABOUT WHAT KIND OF RATE INCREASES CPS ENERGY IS GOING TO COME TO AND SAY, WELL, LET'S GO AHEAD AND LUMP IT ALL TOGETHER AND SAY OVER THE NEXT 
          [01:30:03]
FIVE YEARS WE WANT TO HAVE 4%, 5% A YEAR SO IT'S NOT TOO HARD ANY PARTICULAR YEAR. 
          I WANT TO MAKE SURE -- AND I KNOW OUR STAFF IS COMMITTED TO DOING THIS -- THAT EVERY DOLLAR OF A RATE INCREASE IS ABSOLUTELY POSITIVELY MUST-HAVE BEFORE THEY COME TO THE COUNCIL AND ASK US TO SUPPORT THAT. BUT I THINK THERE ARE A LOT OF MUST-HAVES. 
          ENERGY NEEDS TO GROW. ONE OTHER THING -- ANOTHER THING I THINK WE'RE NOT THINKING ABOUT BUT WE ARE TALKING ABOUT IT IS HOW WE EXPEND ADDITIONAL FUNDS. 
          AND, SURE, WE'VE HAD EXTRA MONEY COME FROM CPS ENERGY OVER THE LAST COUPLE OF YEARS. 
          A SIGNIFICANT AMOUNT. BUT THERE'S BEEN YEARS WHEN WE'VE HAD INCREASED MONEY COMING IN FROM SALES TAX. THERE'S BEEN YEARS WHEN WE HAVE HAD A BIG INCREASE COMING IN FROM PROPERTY TAXES. AND WE DON'T SAY LET'S ALLOCATE THAT FOR A CERTAIN PURPOSE. 
          AND I THINK PART OF MY CONCERN HAS BEEN SOMETIMES WHEN WE HAVE ADDITIONAL REVENUE THAT'S SIGNIFICANTLY MORE THAN WHAT WE PLANNED FOR, WE DON'T HAVE A LOT OF INPUT FROM THE COUNCIL ON THAT. I'LL GIVE YOU AN EXAMPLE. WE DO A TWO-YEAR BUDGET. 
          I KNOW WHAT THE BUDGET FOR '24 LOOKS LIKE. I DON'T KNOW WHAT THE BUDGET FOR '25 LOOKS LIKE. I WOULD LIKE TO SEE A SIDE-BY-SIDE COMPARISON SO THAT WHEN WE APPROVE A BUDGET FOR '24 AND WE APPROVE A BUDGET FOR '25, WE UNDERSTAND WHAT ARE THE PROJECTIONS FOR '25 AND ARE THOSE ALL COVERED BY WHAT OUR EXPENSES ARE GOING TO BE SO THAT IF IN '24 WE HAVE AN EXTRA $50 MILLION, WE KNOW WE ALREADY HAD A BALANCED BUDGET FOR 2025 SO WHAT ARE WE GOING TO DO WITH THAT 50? ARE WE GOING TO SIMPLY ALLOW THE CITY STAFF TO KIND OF ALLOCATE THAT. OR SHOULD WE HAVE AN UNDERSTANDING OF WHAT ARE THEIR PRIORITIES BEFORE THEY START PLUGGING IT INTO THE BUDGET. 
          WHICH IS WHAT I THINK WHAT HAPPENS A LOT OF TIMES. WE END UP GETTING A BUDGET FOR THE NEXT YEAR AT THE END OF OUR FISCAL YEAR AND THEY'VE ALLOCATED ALL THIS EXTRA MONEY THAT'S COME IN FOR THINGS THEY SAY WE NEED -- WHICH WE PROBABLY DO. 
          BUT WE DIDN'T GET MUCH INPUT ON THAT. I'LL GIVE YOU AN EXAMPLE RIGHT NOW. WE'VE GOT $421 MILLION IN REVENUE FROM CPS ENERGY. 
          IF WE HAVE $50 MILLION NEXT YEAR OVER AND ABOVE THAT, WHICH IS ABOUT 12%, WE'RE SAYING 10% IS GOING TO BE UNTOUCHABLE. WE CAN ONLY MESS WITH THE 2%. WHICH WOULD BE $8.5 MILLION. 
          THAT'S WHAT WE NEED TO GET SOMETHING TO SAY ABOUT. BUT WHAT ABOUT THE 10%? WE'RE SAYING, WELL, ARE WE GOING TO HAVE ANY SAY ABOUT THAT? I DON'T SEE ANY KIND OF PLANNING FOR ANY EXCESS WHERE THE COUNCIL HAS MORE TO SAY ABOUT WHAT THE FUTURE IS GOING TO BE ADDED TO THE SECOND YEAR OF A TWO-YEAR BUDGET. 
          SO MY GOAL GOAL IS JUST TO HAVE A LITTLE MORE CLARITY IN OUR TWO-YEAR BUDGETS. 
          UNDERSTAND WHAT THE YEAR AFTER IS LIKELY TO BE AND IF WE HAVE A REALLY GOOD YEAR AGAIN, THEN THEY TELL US, OKAY, WE'RE HAVING A REALLY GOOD YEAR. THESE ARE SOME OF THE THINGS WE'D LIKE TO ADD TO THE NEXT BUDGET. INSTEAD OF THEM BEING ADDED IN WHEN THEY GO AND TALK TO ALL THE DEPARTMENTS. AND THEN THEY SAY, WELL, BUT THERE'S AN EXTRA 2% SO YOU CAN TELL US WHAT TO DO WITH THAT. SO I'M BEING A LITTLE MORE COGNIZANT OF WHAT WE KNOW, WHAT WE DON'T KNOW WHEN IT COMES TO FUTURE GROWTH IN OUR BUDGET AND REVENUE. AND I THINK THAT'S PART OF WHAT WE NEED TO BE CONSIDERING. 
          I DON'T THINK WE CAN CUT $60 MILLION OUT OF THIS BUDGET. 
          THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER COURAGE. 
          >> WALSH: YEAH, LET ME RESPOND TO SOME OF THE THINGS THAT COUNCILMAN COURAGE WAS TALKING ABOUT. AND I DISAGREE WITH THAT STATEMENT AND I WANT TO KIND OF WALK THROUGH WHAT WE DO DO. I MEAN, THAT'S THE REASON WE HAVE A COUNCIL GOALS AND OBJECTIVES WORK SESSION. THAT IS INFORMATIVE TO ME TO UNDERSTAND THE CONSENSUS OF THE GROUP TO BE ABLE TO PREPARE A PROPOSED BUDGET. AND THE PRIORITIES THAT CAME OUT OF THE COUNCIL BUDGET WORK SESSION OF ACS, ADDITIONAL POLICE OFFICERS, STREETS, NON-SERVICE ALLEYS, ALL THOSE THINGS GET BUILT INTO THE BUDGET. 
          SO I DISAGREE YOU DON'T KNOW WHAT'S GOING IN. THAT'S PART OF THE REPORTING WE GIVE AFTER THE WORK SESSION. IT'S PART OF THE REPORTING WE DO AS PART OF THE TRIAL BUDGET THAT WE'VE ONLY BEEN DOING FOR THE LAST THREE YEARS, BUT IT'S AN OPPORTUNITY FOR THE COUNCIL TO SEE WHAT ARE WE BUILDING IN AND WHAT DOES THAT PATH LOOK LIKE. 
          THE SECOND-YEAR BUDGET DOESN'T HAVE A BUNCH OF EXTRAS ADDED IN, COUNCILMAN. 
          [01:35:05]
IT DOES, HOWEVER, PAY FOR THE SECOND YEAR OF THE 117 OFFICERS WE ADDED IN THIS YEAR'S BUDGET. IT DOES INCLUDE THE SECOND-YEAR COST OF YEAR TWO OF THE ACS STRATEGIC PLAN. 
          IT DOES INCLUDE THE SECOND-YEAR COST OF THE SHADE ON THE PARKS. 
          ALL THE THINGS THAT THE COUNCIL APPROVED THAT ARE GOING TO HAVE PENDING IMPACTS TO OUR EXPENSES IN THE SECOND YEAR IS WHAT'S INCLUDED IN THE SECOND-YEAR BUDGET AND WE WOULD BE MORE THAN HAPPY TO SHOW YOU THAT. IT'S LISTED IN THE BUDGET. AND THEN, FINALLY, THERE ARE SOME THINGS THAT GET ADDED IN, FROM MY PERSPECTIVE, AND THEY'RE MY PROFESSIONAL RECOMMENDATION. IF A DEPARTMENT COMES IN DURING THE SUMMER AND SAYS, LOOK, WE NEED TO DO A BETTER JOB HERE, THEN I'LL RECOMMEND IT. THE COUNCIL DID NOT TALK ABOUT SHADE STRUCTURES OVER PARKS. THAT WAS MY RECOMMENDATION. SO THERE'S ALWAYS GOING TO BE SOME THINGS BUT THE VAST MAJORITY, THE FOUR CORNERS OF THE ROOM SHOULD BE SET BY THE COUNCIL AS A GROUP AND THAT'S EXACTLY WHY WE HAVE A WORK SESSION AND IT'S WHY WE HAVE A TRIAL BUDGET AND A FINANCIAL FORECAST AND A COMMUNITY SURVEY BEFORE THE PROPOSED BUDGET. 
          I DON'T WANT YOU TO THINK THAT YOU HAVE NO INPUT. AND CERTAINLY YOU ALWAYS HAVE INPUT BUT I'M LOOKING AT THE GROUP AND YOU'RE ALWAYS GOING TO GET OUR PROFESSIONAL RECOMMENDATION. AND WE WILL FOLLOW UP WITH YOU ON THE SECOND-YEAR BUDGET, IF YOU HAVE QUESTIONS IN IT. IT'S GOT THE SECOND YEAR OF COMPRESSION. 
          ALL THE THINGS WE KNOW THAT ARE COMING, FROM OUR STANDPOINT MAKING SURE WE'RE SETTING ASIDE MONEY IN THE SECOND YEAR TO PAY FOR THE POLICE OFFICER THAT IS GOING TO GET HIRED IN JUNE AND MAKING SURE WE HAVE THE FULL EXPENSE IS A SOUND FINANCIAL MANAGEMENT PRACTICE. 
          >> MAYOR NIRENBERG: THANK YOU, ERIK. COUNCILMEMBER PELAEZ. 
          >> PELAEZ: THANK YOU. I ALWAYS REMIND MY CONSTITUENTS THAT RATES FOR SAWS OR CPS INCREASE OR DECREASE BECAUSE COUNCIL MEMBERS VOTE TO INCREASE OR DECREASE. 
          AND EVEN THOUGH CPS OR SAWS COMES AND REQUESTS THOSE RATE INCREASES, IT'S ENTIRELY UP TO OUR DISCRETION. AND I UNDERSTAND THE PRESSURES PLACED ON THE UTILITIES. 
          I UNDERSTAND THE ARGUMENTS BEING MADE. I THINK THE POLICY PROPOSAL PUT FORWARD BY MY COLLEAGUE FROM DISTRICT 6 IS BOLD AND I THINK IT'S INCUMBENT UPON US TO EXPLORE ALL BOLD IDEAS. I THINK, YOU KNOW, IT GOT PAST GOVERNANCE BECAUSE THE MAJORITY OF US FELT THIS MERITED A ROBUST CONVERSATION. THIS WAS ALWAYS GOING TO BE A CONVERSATION THAT CHALLENGED PRIOR PRACTICES AND CHALLENGED EXPECTATIONS. 
          AND THAT'S HEALTHY. AND I'M GLAD WE'RE HAVING THIS CONVERSATION. 
          YOU KNOW, JUST BY WAY OF REVIEW, I THINK I VOTED -- RUDY, I THINK I VOTED EVERY SINGLE TIME CPS HAS COME AND ASKED FOR A RATE INCREASE. AND I VOTED TO SUPPORT THAT RATE INCREASE ASK. AND THAT'S BECAUSE EVERY SINGLE -- IT'S NOT BECAUSE I LIKE YOU A LOT AND YOU'RE MY FRIEND, BUT I DO. I READ WHAT YOU GUYS SUBMIT AND 
          I THINK THAT YOU GUYS HAVE MADE THE CASE EVERY SINGLE TIME. >> WELL, TO BE FAIR, YOUR EIGHT YEARS ON COUNCIL, WE'VE ONLY BEEN IN FOR ONE RATE INCREASE, BUT YOU DID VOTE ON THAT ONE. 
          [LAUGHTER] >> PELAEZ: DON'T CONTRADICT ME IN FRONT OF THE KIDS. 
          >> NO, THERE HAVE BEEN A COUPLE OF STEP VOTES BUT I WANTED TO MAKE CLEAR. 
          >> PELAEZ: I'LL LUMP IN SAWS IN THERE BUT YOU'RE RIGHT, RUDY. 
          BUT YOU GUYS MADE THE CASE AND I VOTED TO SUPPORT THAT. SAWS MADE THEIR CASE AND I VOTED TO SUPPORT THAT. AND I DID THAT BALANCING THE INTERESTS OF THE UTILITIES AGAINST THE INTERESTS OF MY CONSTITUENTS. AND IN SOME INSTANCES THOSE DECISIONS WERE DIFFICULT ONES TO MAKE BECAUSE MY CONSTITUENTS, QUITE FRANKLY -- THERE'S A LOT OF THEM OUT THERE WHO ARE LIKE I DON'T CARE HOW MUCH YOU NEED IT, RUDY, YOU KNOW, NO, HELL NO, AND STOP ASKING. THAT WAS THE INSTRUCTIONS I GET FROM MY CONSTITUENTS. YEAH, ONE OF OUR JOBS IS TO MAKE THOSE TOUGH DECISIONS. 
          AND WE KNEW THAT GOING IN. THE OTHER THING THAT I REALLY DO APPRECIATE IS THAT WHEN YOU WERE ASKED -- AND ERIK WHEN YOU WERE ASKED AND BEN WHEN YOU WERE ASKED WILL THIS GUARANTEE NO RATE INCREASE IF WE GO WITH THIS, THAT YOU ANSWERED THE RIGHT WAY, WHICH IS NO. 
          IT WON'T. I THINK ANDY WOULD HAVE THROWN SOMETHING AT ERIK HAD HE MADE A 
          [01:40:01]
GUARANTEE ON THE DAIS BECAUSE THE FOUR LAWYERS ON THIS DAIS WILL TELL YOU -- SHANNON, I THINK YOU WOULD AGREE THAT IT'S VERBOTENT TO MAKE ANY GUARANTEES. 
          ANYONE WHO MAKES YOU A GUARANTEE, YOU SHOULD RUN AWAY AS SOON AS POSSIBLE . 
          I THINK THAT'S HEALTHY AND I APPRECIATE YOU GUYS NOT EVEN HINTING AT A GUARANTEE. 
          MY QUESTION, HOWEVER -- AND SEE IF I CAN BACK INTO THIS -- IS HOW MUCH MONEY WOULD YOU NEED TO BE ABLE TO GUARANTEE US? OR HOW MUCH MONEY WOULD YOU NEED IN ORDER TO -- THIS IS NOT A QUESTION FOR ERIK, IT IS A QUESTION FOR RUDY. DON'T WORRY, ANDY, I'LL LET THEM HANG THEMSELVES. HOW MUCH MONEY WOULD YOU NEED WHERE YOU CAN COME IN AND SAY I 
          CAN'T GUARANTEE IT BUT IT MAKES IT MUCH, MORE MORE LIKELY? >> SEGOVIA: AS YOU STATED, WE CAN'T GUARANTEE ANYTHING. SO YOUR ANSWER WAS GUARANTEE. I THINK RUDY'S GOING TO ANSWER HOW MUCH DOES HE NEED TO MITIGATE THE CHANCE THAT HE WOULD COME BACK. 
          >> PELAEZ: THERE YOU GO. >> EVERY YEAR YOU GOT TO LOOK AT OUR REVENUE PICTURE IN AND OF ITSELF. AND WE'RE ALWAYS LOOKING AT THOSE GAPS, COUNCILMAN, TO ENSURE THAT OUR FINANCIAL METRICS THAT WE PAY ATTENTION TO ARE MAINTAINED AT A AA MINUS CREDIT RATING WHICH IMPACTS YOUR CREDIT RATING AS WELL. I DON'T KNOW THAT I CAN STAND UP HERE AND GIVE YOU A NUMBER. I KNOW WE'LL BE TALKING ABOUT A $85 MILLION PLUS OR MINUS GAP COMING UP HERE IN THE NEXT FEW WEEKS. AND THAT NUMBER CHANGES EVERY YEAR. AND WE MANAGE TO, WHAT OUR RATES PROVIDE, AS LONG AS OUR METRICS ARE MAINTAINED. WE'VE GOT TO HAVE A CONVERSATION WITH CITY COUNCIL. THERE CAN BE SOME SCENARIO WHERE IN A YEAR WE WEREN'T PLANNING TO COME IN FOR A RATE INCREASE. THE MARKET GOES CRAZY ON US. 
          WE GOT A $200 MILLION BUDGET GAP THAT IT'S IMPACTING FOR LIABILITY OF YOUR CONSTITUENTS THAT WE'VE GOT TO TALK TO YOU ABOUT BECAUSE WE CAN'T SOLVE FOR THAT. 
          >> PELAEZ: ALSO HURRICANE HARVEY, EL NINO AND LA NINA SHOW UP AT THE SAME TIME IN SAN ANTONIO. THAT COULD DESTROY INFRASTRUCTURE AND REQUIRE A 
          SIGNIFICANT INVESTMENT. >> AND LET ME GO BACK TO WHERE WE WERE THE LAST TIME WE CAME FOR THIS CONVERSATION THAT'S ABOUT TO START. WE HAVEN'T BEEN IN IN EIGHT YEARS. THAT'S NOT A THING TO BE CELEBRATED. 
          WE'VE GOT TO COME IN PERIODICALLY, ANNUALLY TO HAVE A CONVERSATION AND BIANNUALLY -- I DON'T WANT TO HAVE TO COME IN ANNUALLY FOR A RATE INCREASE BUT BIANNUALLY AT A MINIMUM WE OUGHT TO BE HAVING A CONVERSATION ABOUT CPS ENERGY, WHICH IS YOUR ASSET. 
          I DON'T KNOW WHAT THE NUMBER IS BUT, YOU KNOW, WHAT WE TALKED ABOUT, AS THIS CCR WAS MOVING THROUGH THE PROCESS, YOU KNOW, GIVING $100 MILLION THIS YEAR DOES NOT SOLVE FOR NEXT YEAR AND THE FOUR YEARS AFTER THAT THAT I'M GOING TO NEED SUSTAINABLE REVENUES TO RUN MY 
          BUSINESS. THAT'S THE POINT. >> PELAEZ: YEAH. 
          AND I UNDERSTAND THE POINT AND YOU MAKE IT VERY WELL. AND SO BECAUSE YOU CAN'T GUARANTEE ME ANYTHING AND I DON'T EXPECT YOU TO, I IN SAME VEIN CAN'T GUARANTEE ANYBODY ANYTHING. THAT'S WHY TODAY I WANT YOU TO KNOW MY VOTE FOR A RATE INCREASE IS NOT GUARANTEED. AND I CAN'T EVEN HINT THAT I'M LEANING IN THAT DIRECTION. 
          ALL I CAN TELL YOU THAT I'M WEIGHING MY PRIORITIES AGAINST THE PRIORITIES OF MY CONSTITUENTS . AND ANDY REMINDS US OFTEN WE ARE FIDUCIARIES OF THIS ORGANIZATION. WE HAVE TO MAKE THE GOVERNANCE IS STABLE, THAT WE'RE SENDING GOOD PEOPLE UP TO YOU FOR YOUR BOARD. THAT WE HAVE TO MAKE SURE THAT YOU'RE FINANCIALLY SOUND. WE HAVE TO MAKE SURE TO HELP YOU GUYS KEEP YOUR BOND RATING HIGH. AND THAT'S OUR RESPONSIBILITY. THE PROBLEM IS THAT I'M NOT JUST A FIDUCIARY OF THIS ORGANIZATION. I'M AN ELECTED REPRESENTATIVE AND MY CONSTITUENTS' PRIORITIES ARE WHAT I BRING TO THE TABLE AS WELL AND SOMETIMES THEY RUB UP AGAINST MY FIDUCIARY DUTY. AND I LISTEN TO THEM AND THIS YEAR, MORE THAN EVER, THEY'RE TELLING ME THAT THEY'RE GETTING SLAMMED. THEIR COSTS FOR REPAIRING THEIR HOMES AFTER WEATHER EVENTS HAVE INCREASED. THE COSTS OF HIRING FOLKS TO FIX THEIR HOUSE, THE LABOR HAS INCREASED. THE COST OF -- YOU KNOW THIS, COUNCILMAN WHYTE, THE COST OF WOOD TO REPLACE ROOFS IS INCREASING. 
          COUNCILMAN WHYTE ALSO KNOWS THE COST FOR INSURANCE PREMIUMS IS GOING UP WHETHER THEY MAKE A CLAIM OR NOT. ON TOP OF THAT, THE COST OF PAYING OFF THEIR AD VALOREM TAXES, ALL OF US HAD TO SEND OUR CHECK THIS MONTH, HAS INCREASED. 
          THE COST OF RENT HAS INCREASED. IF ANY OF THEM HAVE VARIABLE RATE NOTES. THE COST OF PAYING OFF THEIR MORTGAGES HAS INCREASED. 
          [01:45:03]
YOU KNOW, THE COST OF MILK AT H-E-B HAS INCREASED. THE COST OF MAYOR NIRENBERG'S FAVORITE WALMART STEAKS HAVE INCREASED. I MEAN, THERE'S JUST NO 
          BREAK -- >> MAYOR NIRENBERG: I ONLY GET MY STEAKS FROM H-E-B. 
          [LAUGHTER] >> PELAEZ: YES, SIR. BUT THE REALITY IS THAT NEVER BEFORE HAVE I BEEN PUT IN A POSITION WHERE MY CONSTITUENTS HAVE BEEN PUT UNDER THIS MUCH PRESSURE AND THERE COMES A POINT WHERE I THINK IT'S FAIR FOR COUNCIL TO SAY NO AUDIO]. AND SO THAT'S WHAT I'M STRUGGLING WITH, RUDY AND ERIK. I REALLY DON'T KNOW WHERE I'LL FALL ON THIS IN THE FUTURE. 
          I WILL TELL YOU THAT I NEED A LOT MORE INFORMATION AND I'M GOING TO NEED A LOT OF, YOU KNOW, SUPPORT IN UNDERSTANDING THE CASE FOR A RATE INCREASE. I DO THINK YOU GUYS ARE COMING AT THIS IN GOOD FAITH. YOU KNOW, WE'RE ALL HEARING THE CONSPIRACY THEORIES THAT THIS IS JUST, YOU KNOW, THAT YOU AND I, RUDY, WE ANSWER TO GEORGE OR SOME B.S. LIKE THAT TO GET OUR MARCHING ORDERS, SOME SILLINESS. THOSE ARE ALL INTERESTING AND MAKE FOR A GOOD LAUGH BUT THE REALITY IS THERE ARE PEOPLE OUT THERE WHO DON'T TRUST GOVERNMENT, AND I DON'T DISCOUNT THEIR OPINIONS. SO I'M -- ANYWAY, I THINK YOU'RE PICKING UP WHAT I'M LAYING DOWN. THANKS, MAYOR. 
          THOSE ARE MY COMMENTS. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER PELAEZ. 
          COUNCILMEMBER CABELLO HAVRDA. >> HAVRDA: THANK YOU, MAYOR. THANKS FOR THE PRESENTATION. 
          THIS NEW PLAN IS ABOUT RELIABILITY AND AFFORDABILITY. THERE'S NO HARD GUARANTEES REGARDING BOND RATINGS AND RATE INCREASES. I THINK WE HEARD THAT LOUD AND CLEAR TODAY. WHAT WE CAN GUARANTEE WITH THIS PROPOSAL IS THAT WE'LL DEDICATE OUR RESOURCES TO BE BETTER PREPARED. THE PEOPLE OF SAN ANTONIO LOOK TO US TO MAKE SURE WE DON'T HAVE A REPEAT OF URI AND WE SHOULD ENSURE THAT WE DON'T COME CLOSE TO ROLLING OUTAGES THAT WERE THREATENED THIS SUMMER. 
          WE'RE GOING TO HAVE CRAZY WEATHER. WE SAID CORRECTLY TODAY I THINK THAT IS OUR NEW NORMAL. BUT WE CAN BE BETTER PREPARED FOR IT. 
          I HAVE SAID OVER AND OVER AGAIN WE CAN ONLY CLAIM TO BE CAUGHT OFF GUARD ONE TIME. 
          WE HAVE TO BE READY. THIS POLICY IS ABOUT MAKING THE BEST USE OF FUTURE SURPLUSES. 
          I UNDERSTAND THERE'S NEEDS ACROSS THE CITY THAT CAN BE MET WITH SURPLUS FUNDS. 
          STREETS, SIDEWALKS AMONG OTHERS. BUT POWER GRID RELIABILITY IS A TOP PRIORITY FOR EVERYONE IN OUR CITY. HOMEOWNERS, RENTERS, FAMILIES, SCHOOLS, BUSINESSES. THE GRID IS A VITAL PART OF OUR INFRASTRUCTURE. 
          ALMOST -- REMEMBER, WE'RE CITY OWNED. IT'S ALMOST LIKE ANOTHER CITY DEPARTMENT. AND IT CAN BE ARGUED IN A LOT OF WAYS THAT THIS IS EVEN MORE IMPORTANT THAN STREETS AND LIGHTS AND SIDEWALKS. IF YOU ASK A GENERAL SAN ANTONIAN WOULD YOU RATHER HAVE YOUR STREET REPAVED OR WOULD YOU RATHER KEEP YOUR HEAT ON, I THINK THE CHOICE IS PRETTY CLEAR. HOWEVER, BETWEEN THIS OPTION AND OUR REGULAR BUDGET I THINK WE CAN GIVE THEM BOTH. 80% OF ANYTHING OVER 10% WILL GO TO CPS TO BE USED SPECIFICALLY FOR PHYSICAL INFRASTRUCTURE IMPROVEMENTS AND MAINTENANCE. I'M NOT SURE WE SAID THAT TODAY. 
          WE DISCUSSED IT IN GOVERNANCE AND IT'S SPECIFICALLY FOR PHYSICAL IMPROVEMENTS AND MAINTENANCE OF THE INFRASTRUCTURE. TO BE CONGRUENT OF COURSE WE TAKE THAT 20% AND APPLY IT TO THE REES. AS WAS ADDED IN GOVERNANCE BY COUNCILMAN PELAEZ, CPS WILL NEED TO COME TO US FOR WHAT THOSE APPROVALS WILL BE USED FOR. IF IT'S OVER 10% AND THEY GET A CERTAIN AMOUNT OF MONEY THAT WE'RE GOING TO GIVE THEM BACK, THEY STILL COME TO US. I THINK COUNCILWOMAN KAUR MENTIONED THIS. THEY COME TO US FOR APPROVAL OF THE PLAN. 
          SO WE STILL HAVE A SAY AT THAT POINT. REMINDER THAT -- AS THE MAYOR SAID WE KEEP THE LIGHTS ON BY THE INVESTMENTS WE HAVE SENT TO CPS AND THESE ARE THE LIGHTS OF THE PEOPLE THAT ELECTED US THAT WE REPRESENT. I APPRECIATE THE TERM USED TODAY, MATERIALLY IMPROVING CONSTITUENTS' LIVES. IT IMPROVES THE LIVES OF EACH OF OUR CONSTITUENTS. LET ME BE CLEAR IF THE CONSENSUS OF THIS COUNCIL IS TO GO BACK TO MY ORIGINAL CCR TO HELP PREVENT OR REDUCE THE POTENTIAL RACE INCREASE -- DON'T LISTEN, ERIK. I'M DOWN. THAT WAS MY ORIGINAL PROPOSAL BUT THAT WAS NOT WHAT THE CONSENSUS OF THIS COUNCIL WAS BEFORE. 
          THIS IS WHY WE HAVE THIS ALTERNATIVE. THIS POLICY MAKES OUR CITY STRONGER. IT GIVES US A PLAN TO STRENGTHEN OUR RESPONSE TO UNPREDICTABLE WEATHER INSTEAD OF DIVIDING A SURPLUS MANY TIMES IN A RUSH OF AFTERTHOUGHTS. SPENDING SMALL AMOUNTS ON LAST-MINUTE PROJECTS. 
          THIS PLAN FOCUSES ON ONE THING THAT LIFTS AND PROTECTS EVERY PERSON IN THIS CITY. 
          I STARTED WITH -- THANK YOU, COUNCILMAN PELAEZ, AGAIN. WITH A BOLD IDEA THAT SPARKED 
          [01:50:02]
AN UNCOMFORTABLE CONVERSATION BUT DIFFICULT CONVERSATIONS SHOULD AND CAN COME WITH THE JOB. THE PROPOSED PLAN THAT I WORKED ON WITH ERIK AND BEN AND MAYOR'S INPUT CAME FROM THAT IDEA. I THINK IT'S SIMPLE. 
          HOW DO WE USE THE TOOLS WE HAVE TO MAKE OUR POWER RESOURCE MORE RELIABLE AND MORE AFFORDABLE. 
          THE IDEA HAS SUPPORT FROM OUR RESIDENTS, RATEPAYERS, BUSINESS COMMUNITY WHO ALL HAVE SEEN VALUE IN THIS PROPOSITION. WHEN EVERYTHING AROUND US IS SO UNCERTAIN, THIS PLAN WILL DO WHAT SAN ANTONIANS DO BEST. WE RELY ON OURSELVES AND WE TAKE CARE OF EACH OTHER. 
          AGAIN, I THINK THAT'S WHAT THIS PLAN DOES. THANK YOU. 
          THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER CABELLO HAVRDA. WE'LL GO NOW TO SECOND ROUND OF DISCUSSION. 
          WE'LL START WITH COUNCILMEMBER MCKEE-RODRIGUEZ. >> MCKEE-RODRIGUEZ: THANK YOU, MAYOR. I REALIZE I DIDN'T GET ANSWERS TO THE QUESTIONS THAT I ASKED, WHICH WAS WHAT WERE THE INVESTMENTS THAT YOU MADE LAST YEAR WITH THE UNEXPECTED REVENUE? AND THEN THIS YEAR, WHAT IS THE PLAN TO SPEND IT? AND WHAT DO WE IMAGINE THE IMPACT OF THOSE INVESTMENTS ARE GOING TO BE? 
          >> YEAH, SO LAST YEAR WE DIDN'T HAVE ANY UNANTICIPATED REVENUE. 
          THAT WAS GAS PRICES THAT FUELED THE CITY'S EXCESS REVENUE. THAT DIDN'T IMPACT OUR BUDGET AT ALL. THIS YEAR, WE'LL COME BACK IN THE NEXT FEW WEEKS AND WE'LL TALK TO YOU ABOUT HOW WE'LL SPEND THE EXCESS REVENUE. WE ONLY SPEND OUR MONEY A FEW WAYS. WE PAY OFF DEBT, WE PUT MONEY IN THE AFFORDABILITY PROGRAMS. WE INVEST IN ADDITIONAL TREE TRIMMING AND THEN THE CITY GETS THEIR RETURN. 
          YOU KNOW, THERE'S NO MAGIC IN WHERE OUR MONEY GOES. IT ALL GOES TO RUNNING OUR BUSINESS. WE'LL BREAK THAT DOWN FOR YOU IN A WAY THAT I THINK YOU'LL 
          FEEL GOOD ABOUT. BUT THAT'S WHAT IT IS, SIR. >> MCKEE-RODRIGUEZ: GOTCHA. 
          THANK YOU. I THINK -- I STILL DON'T KNOW EXACTLY WHAT THE CONSENSUS OR DIRECTION OF THIS COUNCIL LOOKS LIKE RIGHT NOW SO I REALLY LOOK FORWARD TO YOUR SUMMARY AT THE END OF THIS. I WILL SAY THAT WE HAVE HEARD A NUMBER OF CONVERSATIONS ABOUT THE ORIGINAL INCENTIVE, THE CCR, AND ONE OF THE BIG ONES WAS PREVENTING A RATE INCREASE. I THINK A PART OF WHAT IT'S GOING TO COME DOWN TO, WHAT THIS COMES DOWN TO IS TRUST. ONE IS TRUST THAT THE CITY BUDGET IS ABLE TO ADEQUATELY MEET THE NEEDS OF OUR RESIDENTS. AND IT'S REALLY -- I THINK IT'S MADE CLEAR EVERY BUDGET CYCLE IS OUR NEEDS ALWAYS FAR OUTWEIGH THE RESOURCES THAT WE HAVE. SO I HEAR THAT REFLECTED IN THE CONVERSATION ABOUT, YOU KNOW, WHEN WE HAVE NEEDS, DOES IT MAKE SENSE FOR US TO SEND MONEY TO CPS SO THEY CAN ADDRESS SOME OF THEIR NEEDS WHEN WE HAVE OUR OWN CONSTITUENT NEEDS THAT WE RECEIVE CALLS ABOUT EVERY SINGLE DAY. SO I HEAR THAT AND I'M SENSITIVE TO IT AND THINKING ABOUT THAT AS WELL. AS WELL IT'S ABOUT TRUST IN CPS ENERGY. 
          I THINK THAT WE'RE COMING UPON A PERIOD WHERE CPS HAS IMPROVED ITS REPUTATION OVER THE PAST YEAR AND SOME CHANGE NOW BUT HAS IT DONE SO ENOUGH TO WHERE OUR CONSTITUENTS FEEL COMFORTABLE SAYING, YEAH, SPEND MONEY HERE. I'LL TELL YOU WHAT WE'LL GET IS WHY DON'T THE EXECUTIVES TAKE PAY CUTS? AND THEN THERE'S THE ANSWER ABOUT, YOU KNOW, HOW MUCH IS THAT GOING TO SAVE YOU? HOW MUCH IS THAT ACTUALLY? AND IT'S NOT GOING TO PAY FOR A DAY OF CPS. IT'S NOT GOING TO DO ANY OF THAT. AND SO I THINK WHAT I WANT TO COMMUNICATE, BECAUSE WE'RE GOING TO BE HAVING THE CONVERSATION ABOUT THE RATE INCREASE AND WE'RE GOING TO BE HAVING A CONVERSATION ABOUT CPS ENERGY AS A WHOLE IS MY CONSTITUENTS HAVE TO TRUST THAT WHEN THEY'RE STRUGGLING AND WHEN THEY'RE SUFFERING THAT WE'RE USING OUR RESOURCES IN A WAY THAT'S GOING TO MITIGATE THAT AND MAKE IT SO THAT WE DON'T HAVE TO DO THAT EVER AGAIN. AND CPS SHOULD BE DOING THE SAME THING. 
          I DON'T QUITE KNOW THAT OUR RESIDENTS FEEL COMMUNICATED IN THAT WAY. 
          THERE'S BEEN A COUPLE OF WEATHER CRISES AVERTED, SOME THAT HAVEN'T. 
          PEOPLE WHO HAVE EXPERIENCED IT AND OTHERS WHO DON'T. THAT'S WHERE I'M GOING AND I LOOK FORWARD TO YOUR SUMMARY. BUT I APPRECIATE YOUR ANSWER TO THE QUESTION. 
          THANK YOU. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER 
          MCKEE-RODRIGUEZ. COUNCILMEMBER VIAGRAN. >> VIAGRAN: THANK YOU. 
          SO IT'S GOOD TO GET THE INPUT. AND I KNOW, RUDY, THAT YOU'RE NOT GOING TO SAY NO TO MONEY. 
          BUT 80%? ANYWAY, WHAT I HEARD THOUGH FROM BEN, WHICH IS CONCERNING ME BECAUSE THERE IS A LINE I'VE SEEN DRAWN ON THIS COUNCIL, ON THIS DAIS THAT I WAS HOPING WE WOULDN'T GET TO. BUT IT'S HERE. I HEARD IT FROM COUNCIL 
          [01:55:01]
COLLEAGUES. YOU KNOW, WE TALK ABOUT, OH, LET'S BUILD THE RESILIENCY. 
          LET'S MAKE SURE THE HOSPITALS STAY ON. I'VE GOT ONE HOSPITAL ON THE SOUTHSIDE. BAPTIST. SO WHAT DOES THAT MEAN? SO WHAT YOU'RE COMMUNICATING TO ME IS WHERE ARE THE CRITICAL AREAS ON THE SOUTH AND EAST SIDE THAT YOU'RE GOING TO KEEP OPEN IF I DON'T HAVE HOSPITALS, IF THE NEIGHBORHOODS AROUND MY FIRE STATIONS, WHICH ARE 80 YEARS OLD, SOME OF THEM. SO THIS IS CONCERNING TO ME ABOUT THE 80% FOR THE RESILIENCY AND THE STRUCTURE. THAT'S WHY I THINK WE NEED TO HAVE A DEEPER CONVERSATION AND WE NEED TO LOOK AT THE INFRASTRUCTURE NEEDS AND THE HISTORICAL RED LINING THAT WAS DONE THAT -- AND I HAVE THIS CONVERSATION WITH YOU ALL THE TIME, RUDY. ALL MY ELECTRICAL IS ABOVEGROUND BECAUSE THE SOIL IS SO BAD BECAUSE SOME OF IT'S BUILT ON LANDFILLS, YOU KNOW? SO THESE ARE CONVERSATIONS THAT WE NEED TO HAVE. IF YOU TELL ME THAT 80% IS GOING TO WORK ON MY POWER LINES AND MOVE MY POWER POLES, I'M IN FOR IT. BUT THAT'S NOT THE CONVERSATION WE'RE HAVING. THE OTHER THING IS IF YOU'RE GOING TO COME BACK TO US, LET'S JUST MAKE CITY COUNCIL THE CPS BOARD. WHEN WE'VE HAD THAT CONVERSATION BEFORE. BUT NOBODY WANTS THAT. BUT WHAT I NEED IS A CPS BOARD, WHICH YOU DO HAVE SOME ALL-STAR MEMBERS THAT DO GET THE SOUTHSIDE AND KNOW THE SOUTHSIDE BUT YOU HAVE SOME MEMBERS ON THAT BOARD THAT I DON'T THINK HAVE SET A FOOT PAST 410. AND YOU KNOW THAT. SO HOW AM I SUPPOSED TO TRUST THEM TO TAKE CARE OF MY RESIDENTS? WE'RE HERE AND WE'RE ADVOCATING FOR OUR RESIDENTS WHO ARE WORKING THOSE JOBS IN THE HOTELS. 
          WHO ARE TRAVELING TO DISTRICT 10 AND DISTRICT 9 ON BUSES TO WORK IN YOUR RESTAURANTS. 
          AND THEN YOU'RE GOING TO SIT HERE AND TELL ME, OH, THEY GET SUBSIDIZED? WHY? BECAUSE THEY'RE NOT GETTING PAID ENOUGH BECAUSE YOU DON'T HAVE AFFORDABLE HOUSING IN 10 AND 9 FOR THEM TO LIVE IN SO THEY'RE A WALK AWAY FROM THEIR RESIDENCE. THIS IS A LONGER CONVERSATION AND I THINK SAWS WAS BROUGHT UP. I KIND OF LIKE WHAT SAWS DID WITH THEIR RATE STRUCTURE, WHICH WE'RE GOING TO TALK ABOUT IF WE LOOK AT A RATE INCREASE HOW WE DO THIS. 
          I REALLY WISH WE HAD THE MONEY TO GIVE YOU TO MITIGATE AN INCREASE, BUT WE DON'T. 
          FINANCIALLY WE DON'T AND WE KNOW THAT EVERYTHING IS GOING UP. 
          SO WE HAVE TO LOOK STRATEGICALLY NOW AND MAKE SURE WE DON'T MAKE THE SAME MISTAKES THAT WE MADE HISTORICALLY IN THE PAST IN THIS CITY THAT SHOWS THAT WE HAVE ONE SIDE OF SAN ANTONIO AND ANOTHER SIDE OF SAN ANTONIO. THANK YOU, MAYOR. 
          >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER VIAGRAN. COUNCILMEMBER WHYTE. 
          >> WHYTE: YEAH. SO RUDY, IF YOU WERE TO HAVE $60 MILLION EXTRA DOLLARS FOR EACH OF THE NEXT FIVE YEARS, EASY MATH. $300MILLION. 
          SURELY WHAT WOULD BE ASKED FOR IN TERMS OF A RATE INCREASE WOULD AT LEAST BE SIGNIFICANTLY 
          LESS. IS THAT FAIR? >> COULD CHARACTERIZE IT AS SIGNIFICANTLY BUT CERTAINLY THAT FUNDING WOULD FLOAT 
          THROUGH AND HAVE AN IMPACT DOWNWARD. >> WHYTE: SO IT WOULD HAVE AN IMPACT. YOU CAN'T SAY IF IT WOULD BE A SIGNIFICANT IMPACT. 
          >> YES, SIR. >> WHYTE: GUYS, THIS IS REALLY JUST A BUDGETING CONVERSATION, RIGHT? IT'S ALL IT IS. AND, YOU KNOW, I WAS GOING TO SAY IN RESPONSE TO YOUR COMMENTS, I THINK WE NEED TO BE SURE WE GET A PROPER DEFINITION OF NEED VERSUS WANT. AND IF WE WOULD SPEND LESS MONEY AND IF WE WANT TO TAKE THE MONEY THAT WE'RE GOING TO CHOOSE NOT TO SPEND AND GIVE IT TO CPS, WE COULD, AT THE VERY LEAST, MINIMIZE WHAT'S GOING TO BE ASKED FOR IN TERMS OF A RATE INCREASE AND KEEP MORE MONEY IN OUR CITIZENS' POCKETS. I HOPE THAT WE ALL, AGAIN, CAN THINK ABOUT THAT. 
          AND, AGAIN, MY REQUEST WOULD BE THAT WE LOOK AT THE ORIGINAL CCR AND TAKE A LOOK AT WHAT IT WOULD LOOK LIKE IF WE SPENT 60 MILLION LESS DOLLARS. THANK YOU. 
          >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE. COUNCILMEMBER CASTILLO. 
          >> CASTILLO: THANK YOU, MAYOR. A COUPLE OF THINGS, RIGHT? 
          [02:00:01]
THE RECOMMENDATION THAT I'VE SEEN, TO ME, SOUNDS LIKE ROBBING PETER TO PAY PAUL. 
          IT'S CONTINUING TO TELL OUR CONSTITUENTS TO WAIT ON HAVING THEIR BASIC NEEDS MET FROM INFRASTRUCTURE AND HOUSING. IT'S HARD TO STAY WARM WHEN YOU WEREN'T SELECTED FOR A SLOT FOR THE HOME REHAB PROGRAM BECAUSE THERE WEREN'T ENOUGH SLOTS. IT'S HARD TO STAY WARM WHEN YOUR UTILITY RATES KEEP GOING UP AND THE COST OF LIVING. IT'S A CODE COMPLIANCE VIOLATION WHEN BOTH UTILITIES ARE SHUT OFF. BUT HEARING THE CONVERSATION, WHEN CAN WE SEE THIS COMING BACK TO BAB SESSION? WHAT ARE NEXT STEPS? 
          >> WALSH: SO MY SUGGESTION WOULD BE THAT WE TAKE THE INPUT AND THE DIFFERING OPINIONS HERE TODAY AND ROLL IT INTO THE NEXT CONVERSATION AS IT RELATES TO THE REST OF OUR FINANCIAL POLICIES AND WHERE WE'RE AT FOR FISCAL YEAR '25. THEY WOULD COME BACK TO COUNCIL 
          IN APRIL DURING THE WORK SESSION. >> CASTILLO: AND A COUPLE OF THINGS I HEARD TOO IN COUNCIL DISCUSSION WAS THE FUNDING WOULD GO TOWARDS CPS, THAT WE DON'T HAVE A VOTE ON THAT BOARD. IN WATCHING PAST MEETINGS, ROBERT'S RULES WEREN'T FOLLOWED AND THERE'S THAT CONCERN OF TRUST AND OVERSIGHT . 
          I WANTED TO BE CLEAR THAT THIS ISN'T US GIVING CPS MONEY BACK. 
          THIS IS CPS RATEPAYERS' DOLLARS THAT WOULD BE GIVEN TO CPS. THROUGH THE PROCESS, THIS IS OUR RATEPAYERS, CITY OF SAN ANTONIO RESIDENTS WHO PAY A CPS BILL. 
          THESE ARE THEIR DOLLARS GOING BACK TO CPS, CORRECT? >> WALSH: NO. 
          I WOULD DESCRIBE IT DIFFERENTLY. THAT IS MONEY THAT, AS OWNERS 
          OF CPS, HOWEVER THEY COLLECTED IT. >> CASTILLO: WHO OWNS CPS? 
          >> WALSH: THE CITY OF SAN ANTONIO. >> CASTILLO: THANK YOU. 
          >> WALSH: BUT LET ME ANSWER THE SECOND PART OF YOUR QUESTION. 
          WE TALKED ABOUT IT -- AND BEN HAD IT ON HIS LAST SLIDE. THIS WAS A TOPIC OF CONVERSATION AT GOVERNANCE. IF THE COUNCIL AGREED TO SUM ALLOTMENT BACK FOR RESILIENCY AND RELIABILITY, HOW WOULD THAT WORK. AND THAT WAS BEN'S LAST SLIDE, HOW WE WOULD PROPOSE IT WORK IS WE WOULD KNOW AT THE END OF THE FISCAL YEAR -- LET'S SAY THERE'S $100,000 LEFT OVER. IT IS SITTING IN OUR ACCOUNTS. CPS WOULD HAVE TO COME TO THE CITY, PRESENT TO THE COUNCIL AND SAY THESE ARE OUR THREE RELIABILITY OR RESILIENCY PROJECTS. THE COUNCIL WOULD SAY YES AND THEN. 
          THAT'S HOW IT WOULD EFFECTIVELY WORK, WE THINK, AS WE PROPOSED IN GOVERNANCE. 
          BUT OBVIOUSLY THERE'S STILL A LOT OF QUESTIONS ABOUT THAT. >> CASTILLO: YEAH, AND I THINK WITH THE RECOMMENDATION I WOULD LIKE TO SEE IN THAT CASE THERE'S A RE-ESTABLISHMENT OF THE RAC. BUT THAT'S HELPFUL. I ALSO WANTED TO CONGRATULATE CPS FOR SECURING THAT GRANT ON RESILIENCY AND THE WORK THAT YOU ALL ARE TAKING ON WITH THAT 
          RESILIENCY. >> CAN I JUST MAKE A QUICK POINT ABOUT THE RAC? WE DIDN'T DISPOSE OF THE RAC. THE RAC WAS DONE WITH THEIR WORK. 
          WE'RE GOING TO RECONSTITUTE OUR CURRENT CAC WITH A NEW COMMITTEE THAT'S GOING TO BE -- A COMMUNITY IMPACT COMMITTEE THAT WILL DO THE SAME WORK THAT THE RAC DID. 
          WE'RE GOING TO TAKE THE NEXT FEW MONTHS TO RECONSTITUTE IT BUT WE WILL HAVE IT PROVIDE 
          FEEDBACK, JUST LIKE THE RAC DID. >> CASTILLO: WILL COUNCIL 
          HAVE THE OPPORTUNITY TO APPOINT THOSE MEMBERS? >> ABSOLUTELY. 
          >> CASTILLO: THAT'S GREAT. THANK YOU, RUDY. >> WALSH: JUST A CLARIFIER. 
          NOTHING FROM THE GOVERNMENT COMMITTEE'S CONVERSATION TWO WEEKS AGO OR TODAY, NOTHING IS GOING INTO EFFECT AND NOTHING AFFECTS OUR EXISTING BUDGET. I WANT TO MAKE SURE THAT'S 
          CLEAR. >> CASTILLO: YES. THANK YOU SO MUCH FOR THAT CLARIFICATION, ERIK, BECAUSE I'M HEARING CONVERSATIONS ABOUT IDENTIFYING $60 MILLION TO CUT. AND THERE'S NO CONSTITUENT, NO DELEGATE AGENCY WHO HAS EVER SAID YOU'RE OVERFUNDING US OR WE NEED LESS. IT'S ALWAYS WE NEED MORE. 
          WE HEAR FROM OUR SMALL BUSINESS COMMUNITY ABOUT A LINE ITEM TO SUPPORT THEM. 
          SO I'M VERY CONCERNED THAT IT WOULD REQUIRE THAT WE IDENTIFY PROGRAMMING AND SERVICES TO CUT WHEN THERE'S ALWAYS REQUESTS AND A NEED FOR MORE. I DO BELIEVE THAT THE CITY OF SAN ANTONIO HAS DONE A GREAT JOB WITH WHAT WE HAVE BUT THAT DOESN'T MEAN WE SHOULD JUST TELL FOLKS TO KEEP WAITING. THANK YOU. THANK YOU, MAYOR. 
          >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER CASTILLO. COUNCILMEMBER ROCHA GARCIA. 
          >> GARCIA: THANK YOU, MAYOR. I JUST WANTED TO AGAIN THANK CITY STAFF. 
          THIS IS EXACTLY -- SO WE HAD A GOVERNANCE COMMITTEE MEETING WHERE WE DISCUSSED THIS. 
          [02:05:04]
I WAS THE ONLY ONE REPRESENTING -- OTHER THAN THE MAYOR -- THE ONLY REPRESENTATIVE OF THE SOUTHSIDE ON THAT COMMITTEE. AND SO I WAS -- I DIDN'T WANT TO MOVE FORWARD WITHOUT A FULL CONVERSATION BECAUSE I FEEL LIKE A LOT OF THE RESIDENTS HAVE GOTTEN THE MOST IMPACTED ARE FROM THE SOUTHSIDE. I CAN'T TELL YOU ENOUGH HOW MUCH I APPRECIATE YOU, ERIK AND MAYOR FOR AGREEING TO PUT THIS ON ASAP SO WE COULD HAVE THAT CONVERSATION. I ALSO WANT TO ACKNOWLEDGE -- COUNCILMEMBER MCKEE-RODRIGUEZ MENTIONED THIS EARLIER. WE HAVE BEEN HAVING CONVERSATIONS ABOUT WHAT TO DO WITH EXCESS MONEY. LAST YEAR ON OCTOBER 22 I HAD A CCR READY TO BE FILED. 
          WE HELD OFF BECAUSE COUNCILWOMAN VIAGRAN WAS WORKING WITH ERIK ON SOMETHING AS WELL. THAT NEVER CAME TO FRUITION. AND SO I THINK THAT'S THE REASON THAT WE WANTED TO PUBLICLY HAVE THIS DISCUSSION. BECAUSE THERE'S SO MANY IDEAS. 
          THERE'S 11 DIFFERENT IDEAS AT THE TABLE OF HOW WE COULD SPEND THIS DIFFERENT MONEY, RIGHT? BUT WE ARE REPRESENTATIVES OF OUR COMMUNITY AND SO AS A WHOLE WE REPRESENT THE ENTIRE CITY. 
          I THINK THAT'S WHY I WAS JUST SO FOCUSED ON HAVING THIS DISCUSSION AS SOON AS POSSIBLE. BUT I HEARD YOU MENTION SOMETHING, ERIK, AND SO COUNCILWOMAN ASKED YOU SOMETHING AND YOU MENTIONED IT WOULD GO TO GOVERNANCE AGAIN. 
          I DON'T THINK IT SHOULD GO TO GOVERNANCE AGAIN. I THINK IT SHOULD GO TO FULL B 
          SESSION. >> WALSH: NO, MA'AM. THAT'S NOT WHAT I SAID. 
          >> GARCIA: PERFECT. I THOUGHT I HEARD THAT. I WANTED TO MAKE SURE THAT ANY DISCUSSION INVOLVING CPS, I THINK WE SHOULD ALL HAVE A FULL SAY. 
          >> WALSH: WHAT I SAID, RESPONDING TO COUNCILWOMAN CASTILLO, IS THAT THE NEXT 
          CONVERSATION IS GOING TO BE AT THE COUNCIL WORK SESSION. >> GARCIA: THANK YOU. 
          GOOD. JUST AS LONG AS WE ALL HAVE AN INPUT. 
          WE'RE JUST SO FAR BEHIND ON INFRASTRUCTURE NEEDS IN SOME OF OUR AREAS. 
          I FELT LIKE IT WAS A CLEAR DIVISION OF NORTHSIDE VERSUS SOUTHSIDE. 
          OH MY GOSH, WHICH IS HAPPENING AGAIN . I WANT TO REITERATE THIS IS WHY IT'S IMPORTANT TO HAVE THE FULL DISCUSSION OF ANYTHING TO DO WITH ANY OF OUR UTILITIES AT THE FULL COUNCIL LEVEL AND WHY I DECIDED TO ABSTAIN ON THAT LAST GO AROUND ON THE GOVERNANCE. THANK YOU. THANK YOU, MAYOR. 
          >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ROCHA GARCIA. 
          COUNCILMEMBER ALDERETE GAVITO. >> GAVITO: THANK YOU, MAYOR. I HAD A QUICK QUESTION. 
          IT'S A PROCESS QUESTION BASED OFF OF COUNCILWOMAN CASTILLO'S EARLIER COMMENTS. 
          SO, ERIK, IF THIS ADDITIONAL FUNDING WOULD GO TO CPS TO SAY, HEY -- FOR EXAMPLE SAY THERE'S $10 MILLION. WHAT WOULD Y'ALL PROPOSE TO DO FOR RESILIENCY AND RELIABILITY PROJECTS? THEY WOULD TAKE THAT BACK TO COUNCIL TO APPROVE OR NOT 
          APPROVE ON? >> WALSH: RIGHT. SO THIS IS A FINANCIAL POLICY. 
          WHICH, BY THE WAY, THE COUNCIL CAN ALWAYS CHANGE. >> GAVITO: SURE. 
          >> WALSH: YOU HAVE COMPLETE LATITUDE. USING YOUR $10 MILLION EXAMPLE, AS IT WAS DISCUSSED AT GOVERNANCE, IF THERE WAS AN 80/20 SPLIT, $8 MILLION -- WE WOULD CHECK THE ACCOUNTS AT THE END OF SEPTEMBER WHEN THE FISCAL YEAR ENDED. 
          IF WE HAD AN AMOUNT, $10 MILLION OVER THE 10%. $8MILLION WOULD BE EARMARKED TO GO BACK TO CPS. IT WOULD NOT JUST GO. THEY WOULD NEED TO COME TO THE CITY COUNCIL AND SAY WE HAVE IDEAS FOR $8 MILLION WORTH OF RELIABILITY AND RESILIENCY. 
          THEY BRING FIVE IDEAS. THE COUNCIL SAYS, NO, WE ONLY LIKE THESE TWO, GO DO THEM. 
          AND THEN THE COUNCIL WOULD TAKE AN ACTION AND WE WOULD SEND THE MONEY BACK. 
          IT WOULDN'T JUST GO BACK WITHOUT ANY SORT OF CONVERSATION AND CONSENT OF THE COUNCIL, BECAUSE AT THAT POINT THAT IS CITY MONEY, WHICH IS KIND OF WHAT I WAS TRYING TO 
          SAY. >> SEGOVIA: IF I COULD MAKE THAT DISTINCTION, ERIK. 
          THE COUNCIL CAN'T DIRECT CPS HOW TO SPEND THEIR REVENUES THAT COME IN THROUGH THEIR OPERATIONS. BUT AS ERIK POINTED OUT, ONCE THEY SEND THE MONEY TO THE CITY, IF WE ELECT TO SEND MONEY BACK, WE CAN CERTAINLY PUT PARAMETERS AND APPROVE SPECIFIC PROGRAMS THAT THIS COUNCIL WANTS THAT POT OF MONEY TO BE SPENT ON. 
          >> GAVITO: AND THANK YOU FOR CLARIFYING THAT. BUT JUST ALSO TO BE CLEAR, SAY IN THE EXAMPLE $8 MILLION FOR RESILIENCY AND RELIABILITY AND THAT 80% PORTION CITY COUNCIL ONLY SAYS, YEAH, LET'S MOVE FORWARD WITH THESE TWO. MAYBE THAT TAKES UP $4 MILLION. IS THAT REMAINING MONEY STILL KIND OF EARMARKED FOR CPS RELIABILITY AND RESILIENCY OR COULD WE SAY LET'S USE THIS FOR STREETS OR PARKS OR SOMETHING 
          ELSE? >> WALSH: WELL, I THINK THE COUNCIL AND THE CITY ALWAYS RETAIN CONTROL OVER FINANCIAL POLICIES. AND SO WE COULD HAVE HAD A BAD 
          [02:10:04]
STORM THAT CAME THROUGH AND WE NEEDED TO DO A LOT OF CLEAN UP IN NEIGHBORHOODS AND WE NEEDED THE EXTRA MONEY. THEN WE WOULD MAKE THE CASE FOR THAT. 
          I DON'T THINK IT'S THAT RIGID. I'LL ALWAYS ADVOCATE THAT WE MAINTAIN AS MUCH FLEXIBILITY AND LATITUDE. BUT THE RIGOR OF THE PROPOSAL IS GOOD AS A GUIDELINES AND A 
          GUIDEPOST. >> GAVITO: YEAH. AND I SEE THAT AS A GUIDELINE AND A GUIDEPOST. I THINK WHERE MY RESERVATION IS I DON'T WANT TO PAINT OURSELVES IN A CORNER. THAT'S WHY I'M ASKING. THANK YOU. 
          >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ALDERETE GAVITO. 
          I'M GOING TO MAKE SOME WRAP-UP COMMENTS, IF THAT'S OKAY. IF ANYBODY ELSE WANTS TO JUMP IN WHO HASN'T YET FOR THE SECOND TIME? OKAY. 
          I THINK THE GOOD NEWS FOR EVERYBODY IS -- AND THIS ACTUALLY PERTAINS TO WHAT YOU WERE TALKING ABOUT, COUNCILMEMBER. NOTHING GETS CONSUMMATED IN THE BUDGET WITHOUT A FULL COUNCIL VOTE. OUR BUDGET ORDINANCE HAS PASSED EVERY YEAR. IT'S AN ORDINANCE. IN THE EVENT WE MAKE TWEAKS HERE AND THERE AND EVEN IF WE PASS A NEW POLICY, THAT'S AN ORDINANCE THAT THE CITY COUNCIL HAS CONTROL OVER. THE OTHER THING IS WITH REGARD TO CPS ENERGY ACTIONS THAT THE CITY COUNCIL TAKES, NOTHING GETS ENACTED REGARDING OUR UTILITIES THAT'S IN THE PURVIEW OF THE CITY COUNCIL WITHOUT FULL COUNCIL DISCUSSION. WE DO NOT HAVE THAT AUTHORITY AS A COMMITTEE -- ANY COMMITTEE TO TAKE AN ACTION ON BEHALF OF THE COUNCIL WITHOUT THE FULL COUNCIL WEIGHING IN. SO THAT'S WHERE THE DISCUSSION WILL TAKE PLACE NEXT. 
          NOW, JUST TWO OTHER POINTS THAT I JUST AM COMPELLED TO MAKE. ONE OF THEM IS HELPFUL INSIGHT THAT I DIDN'T REALLY KNOW ABOUT UNTIL I HEARD ABOUT IT AT THE BOARD THE OTHER DAY, WHICH IS THAT WHEN WE HAD CONSERVATION CALLS HERE FROM ERCOT SAYING WE MIGHT HAVE TO HAVE ROLLING BROWNOUTS BECAUSE ERCOT WAS NOT ABLE TO -- THE STATE DIDN'T HAVE ENOUGH ENERGY CAPACITY ON THE GRID TO MEET THE DEMAND. CPS ENERGY WAS ABLE TO, THROUGH CONSERVATION CALLS WITH HIGH-POWER USERS, ABLE TO AVOID THAT SCENARIO LOCALLY. SO ENOUGH OF THE LARGE CONSUMERS OF POWER AGREED TO CONSERVE PROACTIVELY TO WHERE IF WE DID HAPPEN TO GO INTO A ROLLING BROWNOUT SITUATION, ERCOT, WE HAD ALREADY REMOVED ENOUGH CAPACITY FOR ERCOT TO BE SATISFIED. WE WOULD NEVER HAVE ASKED RESIDENTS TO TURN THEIR POWER DOWN. THAT'S GOOD NEWS BECAUSE THAT MEANS THAT WE HAVE NOW ESTABLISHED GOOD COMMUNICATION, A TWO-WAY RESPONSIBILITY THAT WE AVOIDED THAT SITUATIONS LOCALLY, EVEN THOUGH IT NEVER HAPPENED FROM THE STATE AS WELL. 
          I THINK THAT'S HELPFUL FOR US TO KNOW. THE SECOND THING IS THERE'S THIS DISCUSSION THAT IS HAPPENING ABOUT SHOULD WE SEND CPS REVENUE TO TAKE CARE OF THEIR ISSUES OR SHOULD WE TAKE CARE OF THOSE, YOU KNOW, RESILIENCY MATTERS THAT WE HAVE. AND WE HAVE PRIORITIES, THEY HAVE PRIORITIES. 
          THE POINT IS THIS: CPS ENERGY IS A PUBLICLY-OWNED UTILITY. IT IS A CITY OF SAN ANTONIO QUOTE, UNQUOTE AGENCY. WE HAVE FIDUCIARY RESPONSIBILITY TO THAT COMPANY. CPS ENERGY PROBLEMS ARE CITY OF SAN ANTONIO PROBLEMS. CPS ENERGY RESILIENCY ISSUES ARE CITY OF SAN ANTONIO RESILIENCY ISSUES. 
          THOSE CHICKENS WILL COME HOME TO ROOST. LET'S NOT PRETEND THEY WON'T. 
          SO WHEN WE TALK ABOUT, YOU KNOW, WE HAVE PRIORITIES, THEY HAVE PRIORITIES. 
          THE CITY HAS RESILIENCY ISSUES WE'VE GOT TO DEAL WITH. WE HAVE TO MAKE A DETERMINATION, IF WE HAVE EXCESS REVENUE. WHICH, AGAIN, IS ONLY AFTER THE 10% EXCESS OVER FORECAST. IF WE HAVE THAT ADDITIONAL REVENUE, WE SHOULD HAVE THE DISCUSSION. CAN WE BETTER ADDRESS THOSE ISSUES BY SENDING MONEY OVER TO CPS? I MEAN, THAT'S KIND OF WHERE OUR DISCUSSION HAS BEEN WITHIN THE LAST COUPLE OF YEARS. OR CAN WE DO MORE TO ADDRESS THE ISSUE AT THE CITY. 
          I THINK THAT CONVERSATION IS GOING TO TAKE PLACE EVERY TIME WE ARE IN THAT SITUATION. 
          I THINK GUIDEPOSTS AND PARAMETERS ARE A GOOD IDEA. THEY GIVE US SOME CERTAINTY. 
          BUT AT THE END OF THE DAY WE OWN THE COOP AND SO WE'RE GOING TO HAVE TO ADDRESS THOSE ISSUES, WHETHER THEY RESIDE AT CPS OR THE CITY. AND WE SHOULD LOOK AT THEM HOLISTICALLY LIKE THAT. SO GREAT DISCUSSION. WE'RE GOING TO COME BACK TO IT. I'M CERTAIN, AT THAT POINT, IF A COUNCILMEMBER OR TWO WANTS TO CUT $90 MILLION FROM THE BUDGET, AS THEY CAN DO EVERY YEAR, THEY CAN BRING THAT 
          [EXECUTIVE SESSION
At any time during the meeting, the City Council may recess into executive session in the Presidio Conference Room to consult with the City Attorney's Office (Texas Government Code Section 551.071) and deliberate or discuss any of the following:
 ]
BUDGET PROPOSAL DURING THE FORECAST. WE CAN ADDRESS IT AT THAT 
          [02:15:01]
TIME. GREAT DISCUSSION. WE DO HAVE AN EXEC SESSION SO I'LL WRAP IT UP AT 4:18 P.M. ON WEDNESDAY, NOVEMBER 1, 2023. THE CITY COUNCIL OF THE CITY OF SAN ANTONIO WILL NOW MEET IN EXECUTIVE SESSION TO CONSULT WITH THE CITY ATTORNEY'S OFFICE PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071 AND TO DELIBERATE OR DISCUSS THE FOLLOWING ITEMS. ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO SECTION 551.087. 
          PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY PURSUANT TO SECTION 551.072. 
          LEGAL ISSUES RELATED TO EXPANDING DIGITAL INCLUSION, CPS LITIGATION RELATED TO WINTER STORM URI, AND OTHER LITIGATION INVOLVING THE CITY EMERGENCY PREPAREDNESS ALL PURSUANT TO 551.071. 
          >> MAYOR NIRENBERG: GOOD AFTERNOON, THE TIME IS 515 ON THE FIRST DAY OF NOVEMBER. CITY COUNCIL HAS RECONVENED FROM ITS EXECUTIV
* This transcript was compiled from uncorrected Closed Captioning.