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MAIRPZ WE HAVE A QUORUM. SO THE TIME IS NOW 2:06 P.M. ON THE THIRD DAY OF APRIL, 2024. WE'LL CALL OUR CITY COUNCIL B SESSION TO ORDER. PLEASE TAKE YOUR SEATS. WE'LL GET OUR MEETING STARTED. MADAM CLERK, COULD YOU READ THE ROLL.
>> CLERK: RIGHT. GOOD AFTERNOON, EVERYBODY.
WE HAVE TWO ITEMS TODAY, SO TWO ROUNDS OF DISCUSSION FOR OUR B SESSION TODAY. I'LL TURN IT OVER TO CITY MANAGER ERIK WALSH TO GET
US STARTED. >> WALSH: THANK YOU, MAYOR.
GOOD AFTERNOON, MAYOR AND COUNCIL. SO OUR FIRST PRESENTATION TODAY IS, AS YOU MENTIONED, IS ON SEVERAL AIRPORT FRONTS.
ONE IS JUST A REAL QUICK HIGH-LEVEL UPDATE ON THE TERMINAL DEVELOPMENT PROGRAM, AND IN KEEPING WITH THE PERIODIC UPDATES TO THE COUNCIL.
THE MAIN FOCUS OF TODAY'S PRESENTATION WILL ALSO BE PRIMARILY FOCUSED ON THE POSTSOLICITATION BRIEFING ON THE NEW PARKING OPERATOR THAT WE PREVIOUSLY HAD BRIEFED IN THE PRESOLICITATION. THE RECOMMENDED COMPANY, SP PLUS IS HERE, THEY'RE LEADING PARKING OPERATOR WITH MORE THAN 60 YEARS OF EXPERIENCE, AND THEY DO THAT AT OVER 160 AIRPORTS AROUND THE COUNTRY, SO -- AND INCLUDING MOST OF THE MAJOR HUBS HERE IN TEXAS. SO WE'LL ALSO INCLUDE A PRESOLICITATION BRIEFING ON SECURITY SERVICES. THAT'S ANOTHER CONTRACT THAT WILL BE GOING OUT, AND JUST KIND OF KEEPING ON THE SAME TEMPO OF MAKING SURE WE'RE DOING ALL THE AIRPORT ITEMS AT ONCE WILL BE THE GIST OF TODAY'S PRESENTATION.
SO WITH THAT, I'LL TURN IT OVER TO JESUS. >> SAENZ: THANK YOU, ERIK, MAYOR, CITY COUNCIL. JESUS SAENZ, DIRECTOR OF AIRPORTS FOR CITY OF SAN ANTONIO. THANK YOU ALL FOR HAVING US TODAY. AS ERIK MENTIONED, WE WANT TO CONTINUE WITH THE QUARTERLY BRIEFINGS ON EVERYTHING THAT'S TRANSPIRING AT THE AIRPORT. TODAY'S BRIEFING WILL ENCOMPASS A VERY HIGH-LEVEL OVERVIEW OF WHAT'S HAPPENING WITH AIR SERVICE, A NUMBER OF GOOD OPPORTUNITIES THAT WE HAVE HAD ON THE AIR SERVICE SIDE, ALONG WITH THE OVERALL TERMINAL DEVELOPMENT PROGRAM AND WHAT WE'RE DOING THERE.
I'LL START FIRST WITH THE TDP BRIEFING, BUT BEFORE I GET INTO THAT, I JUST WANTED TO START TODAY'S PRESENTATION WITH A BRIEF HIGHLIGHT OF SOME ACCOMPLISHMENTS FROM THE FIRST FOUR MONTHS OF 2024.
IN THE FIVE MONTHS SINCE I BRIEFED THE CITY COUNCIL WITH THE CONSTRUCTION MANAGER AT RISK CONTRACT. AS YOU NOTICED, WE HAVE NEW LOGOS, COLOR SCHEMES AND NEW BRANDING CAMPAIGN, GOOD TO GO, TO HELP SUPPORT OUR CURRENT AND UPCOMING SERVICES. IN 2024, WE ALREADY ENJOYED A SEASONAL SERVICE TO TAMPA ON SPIRIT, WHICH ENDS NEXT WEEK, BUT HAVE MORE TO COME, INCLUDING THE LAUNCH OF NEW SERVICE ON SPIRIT TO NEWARK, WHICH WILL HELP PROVIDE PRICE COMPETITION TO OUR CURRENT SERVICE PROVIDERS. AND THEN NEXT MONTH, WE WILL LAUNCH OUR FIRST TRANSATLANTIC FLIGHT ON CONDOR TO FRANKFURT ON MAY 17TH. YOU SHOULD HAVE SEEN OUR BRANDING CAM PAPE ON BILLBOARDS BY NOW THROUGHOUT THE CITY AND WE'RE MAKING THIS SERVICE KNOWN EVERYWHERE. I TELL EVERYBODY, I DON'T GO ANYWHERE WITHOUT PUTTING A DISCUSSION ABOUT CONDOR. WE WANT IT TO BE MORE SERVICE TO COME AND MORE IMPORTANTLY MORE TRANSATLANTIC SERVICE.
WE HAVE MORE SERVICE COMING WITH VIVA DEBUS. IN FEBRUARY WE ALSO SAW SEVERAL AIRLINES RELAUNCHING SERVICE THAT HAD ENDED DURING THE PANDEMIC, SUCH AS DELTA TO JFK, SOUTHWEST TO FORT LAUDERDALE.
THESE ROUTES ARE ALSO SERVED BY OTHER AIRLINES BUT THE RETURN OF THIS SERVICE RESULTS IN MORE CHOICES FOR OUR CUSTOMERS WHEN SELECTING A ROUTE AS IT RELATES TO THE TIME AND PRICE AVAILABILITIES.
AND JUST LAST MONTH, WE ENJOYED OUR BUSIEST DAY EVER ON MAR EIGHTH, WHICH WAS OUR SAT ON MARCH 8TH. WE CONTINUE TO BEAT OTHER RECORDS.
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FEBRUARY 2024 WAS OUR TENTH RECORD-BREAKING MONTH IN A ROW.WE ALSO EXPERIENCED AN 8% INCREASE IN PASSENGERS COMPARED TO FEBRUARY OF 2023, AN INCREASE DUE IN PART TO A STRONG RETURN OF THE TRAVEL TO MEXICO.
IN FACE, WE'RE RANKED NUMBER ONE AMONG ALL U.S. MEDIUM HUB AIRPORTS IN TERMS OF TOTAL SEATS TO MEXICO FOR FEBRUARY OF 2024.
AND THESE HIGHLIGHTS ARE JUST FROM OUR AIR SERVICE DIVISIONS.
ON THE TERMINAL DEVELOPMENT FRONT, A KEY ACCOMPLISHMENT WAS THE EXREETION OF THE NEGOTIATIONS WITH HENSEL PHELPS OF THE AGREEMENT OF THE CONSTRUCTION MANAGER AT RISK FOR THE NEW TERMINAL WHICH WAS ISSUED LAST MONTH. OUR MASTER ARCHITECT TEAM LED BY LAKE FLATO AND CORDON BEGAN THE COORDINATION WITH HENSEL PHELPS TO HAVE PREDESIGN WORK SO WE'RE IN FULL CONSTRUCTION LATE 2024, EARLY 2025.
WE CONTINUE TO MAKE PROGRESS ON OUR TERMINAL A GROUNDLOAD FACILITY WITH CONSTRUCTION TO RELOCATE THE SECURITY GATE WITH THE CONSTRUCTION TO RELOCATE THE SECURITY GATE HAS BEGUN, WHILE THE DESIGN AND PERMITTING OF THE NEW GROUNDLOAD FACILITY CONTINUES.
THE NEW FACILITY IS ANTICIPATED TO BE OPEN IN THE SUMMER OF 2025, AND WILL BRING US MUCH-NEEDED GATE CAPACITY WHILE OUR LARGE TERMINAL IS UNDER DESIGN. I WANT TO MAKE IT CLEAR TO EVERYONE THAT THE GROUNDLOAD FACILITY IS A BRIDGE THAT TAKES US TO THE NEW TERMINAL DEVELOPMENT, TWO DIFFERENT CONSTRUCTION EFFORTS, SO THAT THERE'S NO CONFUSION. IT'S ONE OF THE THINGS THAT WE SURFACED AND DISCUSSED WITH THE AIR SERVICE DEVELOPMENT COMMITTEE LED BY JOHN DICKSON, AND THERE WAS A VERY GOOD POINT THAT THEY BROUGHT UP, TO MAKE SURE THAT THERE WAS NO CONFUSION. SO WE JUST REFERENCE THAT AS WE GO FORWARD. ADDITIONALLY, WE'VE BEEN REALLY, REALLY BUSY WITH GRANTS. THANK YOU TO ALL WHO HAVE SUPPORTED ON THE SA TO D.C. EFFORT WHERE IT RELATES TO THE WORK THAT THE MAYOR AND ERIK HAVE HELPED AS WE'VE MET WITH A NUMBER OF DIFFERENT FEDERAL AGENCIES IN WASHINGTON. I KNOW MANY OF YOU WERE THERE SUPPORTING US AS WELL. COULD NOT BE MORE APPRECIATIVE.
WE HAVE ALREADY BEEN AWARDED 30 MILLION THIS YEAR FOR THE FINAL PHASE OF OUR TAXIWAY NOVEMBER RECONSTRUCTION WORK AND THE EXPANSION AND UPGRADE OF OUR TERMINAL A ELECTRICAL SYSTEM, WHICH IS SIGNIFICANT FOR OUR CURRENT OPERATIONS, ESPECIALLY THROUGH THE CONSTRUCTION OF THE NEW TERMINAL. OF THE 30 MILLION, THE FAA AWARDS US 18 MILLION FOR DESIGN PHASE SERVICES AND PRECONSTRUCTION PHASE SERVICES FOR OUR NEW TERMINAL COMPLEX, THE NEW TERMINAL DEVELOPMENT, THE 850,000 SQUARE FOOT WITH 17 GATES. WE SUBMITTED A RASE GRANT OF 7.6 MILLION TO SUPPORT THE PLANNING AND DESIGN SERVICES FOR THE TERMINAL DEVELOPMENT ROADWAY SYSTEM, A PORTION OF THIS PART IN ORANGE THAT YOU SEE HERE, AND WE ARE STILL AWAITING FOR FAA TO RELEASE THE NOTICE OF FUNDING OPPORTUNITIES OR NOFO SO WE CAN SEEK UP TO 18 MILLION TO SUPPORT OUR SOUTH RON, REMAIN OVERNIGHT PROJECT, THE LARGER AREA THAT YOU SEE IN THE GREEN.
THE NOTICE OF FUNDING OPPORTUNITY FOR THE FY 2025 MEGAGRANT WAS AWARDED -- WAS ISSUED LAST WEEK, WHICH WAS EARLY, BUT WE WILL SEEK A GRANT APPLICATION FOR IT TO SUPPORT OUR AIRFIELD PROGRAM.
OTHER GRANT APPLICATIONS CURRENTLY PLAN TO INCLUDE 13 MILLION FOR THE CRITICAL INFRASTRUCTURE PROGRAM FOR TERMINALS A AND B, 20 MILLION FOR OUR SECOND PACKAGE OF CONSTRUCTION PHASE SERVICES FOR THE TERMINAL DEVELOPMENT PROGRAM, 25 MILLION FOR CONSTRUCTION PHASE SERVICES FOR THE TDP ROADWAY SYSTEM, AND ANOTHER 20 TO 50 MILLION FOR OUR AIRFIELD PROGRAM. I CAN'T THANK ENOUGH THE TEAM THAT'S LEADING THE TDT AND MELISSA AND THE HARD WORK THEY'VE DONE AND ASSISTED BY SALLY FROM THE GOVERNMENTAL AFFAIRS TEAM AS WELL.
AS IT RELATES TO THE PARKING SOLICITATION, ANOTHER IMPORTANT ITEM IN TODAY'S BRIEFING ENCOMPASSES A POSTSOLICITATION BRIEFING FOR A SOLICITATION THAT WAS BROUGHT TO YOUR ATTENTION IN LATE 2022.
AS WE CONTINUE TO GROW OUR PASSENGER COUNTS, IT IS VERY IMPORTANT TO ADAPT OUR OPERATIONS TO OUR PASSENGER NEEDS. I HAVE MENTIONED THAT THE GEOGRAPHICAL USERS OF OUR AIRPORT IS EXPANDING. THE NUMBER OF DAYS THAT OUR CUSTOMERS ARE PARKED IS INCREASING. THIS IS ALL GOOD; HOWEVER, WE NEED TO IMPROVE AND CAPTURE THE CURB TO GATE -- THE CURB TO FIGHT FLOW MANAGEMENT WITH NEW TECHNOLOGIES TO BETTER UNDERSTAND PASSENGER MOVEMENTS, PROVIDE AND IMPROVE LEVELS OF SERVICE, AND INTRODUCE NEW PARKING OPTIONS AND ALTERNATIVES.
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ULTIMATELY, AS WE DO THIS, WE CREATE A BETTER EXPERIENCE AND IMPROVE OUR OVERALL NONAERONAUTICAL REVENUES.AS A QUICK OVERVIEW, OUR EXISTING CONDITIONS -- OF OUR EXISTING CONDITIONS -- 2023, WE EARNED 31 MILLION. THESE FUNDS SUPPORT THE MAINTENANCE AND OPERATIONS OF BOTH AIRPORTS.
THE REVENUE IS ANOTHER INDICATOR OF THE STRONG RETURN IN PASSENGERS, AND OVER THE PAST TWO YEARS, WE HAVE CONTINUED TO EXPERIENCE CONSISTENT CAPACITY ISSUES DURING PEAK HOLIDAY TRAVEL TIMES, AS WELL AS OUR SUMMER TRAVEL PERIODS. WITH OUR CURRENT STRUCTURE, WE ARE UNABLE TO PROVIDE DYNAMIC PRICING OR ONLINE PARKING RESERVATIONS.
AND WE ARE ONE OF THE LAST MEDIUM HUB AIRPORTS THAT HAVE NOT OUTSOURCED OR LOOKED AT THIS OPTIMIZATION PARKING OPERATOR CONDITION.
AS I MENTIONED EARLIER, WE BROUGHT THE SCHEDULE THAT REVIEWED IN SEPTEMBER OF 2022, TO REVIEW THE PRESOLICITATION FOR THE B SESSION. IN MARCH, WE RELEASED THE SOLICITATION DOCUMENTS.
A FEW MONTHS LATER IN JUNE, FIVE RESPONSES WERE ARE RECEIVED, AND THE DUE DILIGENCE WAS PERFORMED. IN OCTOBER OF 2024, THE EVALUATION COMMITTEE MET AND SCORED FIVE RESPONSES. IN NOVEMBER OF LATE LAST YEAR, THE INTERVIEWS WITH FOUR FIRMS WERE COMPLETED, NEGOTIATIONS WERE INITIATED WITH SELECTED RESPONDENTS, AND THEN THE POSTSOLICITATION B SESSION WITH THE TARGET COUNCIL DATE OF APRIL 11TH FOR YOUR APPROVAL. TODAY'S BRIEFING IS TO GIVE YOU THE OVERVIEW OF THE ENTIRE PROCUREMENT PROCESS. I CAN'T THANK ENOUGH THE TEAM LED UNDER TROY THAT HAS BEEN HELPFUL AND SUPPORTIVE OF THIS.
NERBERT WHO CAME IN AND ASSISTED WITH US ON OUR SIDE FROM THE CITY, WE'VE HAD RYAN ROCHA AND MICHAEL GARNET DOING THE NEGOTIATIONS ALONG WITH THE ENTIRE PROCUREMENT TEAM. THE EVALUATION TEAM WAS WITH JEFF COYLE, ASSISTANT CITY MANAGER, MYSELF, RYAN ROCHA, JENNIFER MILLS, THE ASSISTANT DIRECTOR OF AVIATION, ASSISTANT DIRECTOR OF ITSD, JOHN RODRIGUEZ, A BANKING OFFICER FROM FINANCE, ROSEANNE CANTU AND THE DIRECTOR OF PARKING OF GROUND TRANSPORTATION WITH THE HOUSTON AIRPORT SYSTEM, MR. WALT GRAY. WE WANTED TO SHARE WITH YOU WHAT WE WERE LOOKING FOR WHEN WE REVIEWED THE PROPOSALS AND CONDUCTING THE INTERVIEWS. IT WAS IMPERATIVE THAT THE FIRMS HAVE EXPERIENCE AS A PARKING OPERATOR AT A COMMERCIAL AIRPORT, SO WE WANTED THEM TO UNDERSTAND EARLY MORNING DEPARTURES AND HOW THAT IMPACTS OUR OVERALL PARKING OPERATION. WE ALSO WANTED A FIRM EXPERIENCED IN PROVIDING SERVICES THAT PROMOTE AN EASIER EXPERIENCE FOR CUSTOMERS WHEN THEY ARE PARKING AND MAKING SUCH PARKING RESERVATIONS OR A PREPAID PARKING OPTION THAT WILL NOW BE AVAILABLE. WE CARE ABOUT OUR EMPLOYEES AND WE WANT TO ENSURE THE FIRM PROVIDES A GOOD COMPENSATION FOR THOSE THAT CONSIDER TRANSITIONING OVER TO THE PARKING OPERATOR AND PROVIDES THEM A PACKAGE FOR THEM TO REALLY TAKE INTO CONSIDERATION AS WE GO FORWARD. AND THROUGHOUT IT ALL, THEY MUST HAVE A PROVEN RECORD FOR DATA SAFETY, SINCE THEY HANDLE CREDIT CARDS AND CARBON A DAILY BASIS. WE HAD VERY STRONG SUBMISSIONS.
ONE OF THE FIVE PROPOSALS WE SELECTED -- OF THE FIVE PROPOSALS, WE SELECTED FOUR FOR INTERVIEWS. THE FIFTH ONE HAD REMOTE PARKING LOT EXPERIENCE, BUT NOT AIRPORT-SPECIFIC PARKING EXPERIENCE THAT THE OTHER FOUR DID THAT LED US TO TRANSITIONING INTO THE FINAL SCORING MATRIX. AFTER THE INTERVIEWS, IT WAS CLEAR THAT SP PLUS HAD THOSE CHARACTERISTICS THAT WE WERE SEARCHING FOR.
THEY SCORED 38 POINTS OF THE MAXIMUM OF 40 FOR EXPERIENCE, BACKGROUND AND QUALIFICATIONS. ALL SEVEN EVALUATORS GAVE THEM HIGH MARKS NOTING GOOD EXPERIENCE AT AIRPORTS OR SIMILAR SIZE AND SCOPE.
THE RESPONDENT DEMONSTRATED MASTERY OF PARKING RESERVATIONS WITH ITS PLATFORM AT 18 U.S. AIRPORTS. THEY ALSO DEMONSTRATED THEIR EXPERIENCE IN REVENUE AND YIELD MANAGEMENT USING PREDICTIVE OCCUPANCY AND DYNAMIC PRICING. THIS PROVIDED A CASE STUDY OF REVENUE IMPROVEMENT WHERE SOLUTIONS ARE USED AND INCORPORATED. THE RESPONDENT PROVIDED THAT THEY CAN OFFER REMOTE BAG CHECK AND BOARDING PASSES. THEY ALSO SCORED THEM STRONGLY ON THE PROPOSED PLANS NOTING THAT THE PROPOSED PLAN TOUCHES ALL
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THE KEY AREAS, BETTER WAGES, BENEFITS AND OTHERS FOCUSING ON OUR EMPLOYEES, THEY DEMONSTRATE THAT THEY CAN TRANSITION THE OUTSOURCING WITH GOOD TEMPERAMENT AND THEY STATE THAT THEY CAN, IF DESIRED, PROVIDE A YIELD MANAGEMENT SYSTEM. WE HAVE BEEN VERY CLEAR THAT THIS IS WHAT WE INTENDED TO DO. THEY HAVE THE BEST OPTION FOR EMPLOYEE TRANSITION, AND THEY HAVE THE BEST OPTIONS FOR GOOD CUSTOMER CONVERSIONS AND GREAT DATA ANALYTICS. THE OTHER FOUR SCORED WELL, BUT NOT WITH ALL THE EVALUATORS AS SP PLUS WAS.THE TERM IS 10 YEARS WITH TWO FIVE-YEAR OPTIONS. THE EFFECTIVE DATE WILL BE 70 DAYS FROM CITY COUNCIL'S APPROVAL OF THE CONTRACT AS WE BRING THAT FOR YOUR APPROVAL ON NEXT WEEK'S COUNCIL AGENDA. THE PASSENGER IMPACT NEW TECHNOLOGIES WE'LL START UNVEILING AS SOON AS THIS -- AS EARLY AS THIS SUMMER AND THIS FALL. THE AIRPORT CONCESSIONS DISADVANTAGE BUSINESS ENTERPRISE WHICH IS ACDBE, THE GOAL WAS SET AT 9%, SP PLUS HAS COMMITTED A TOTAL OF 30%. THE CITY WILL PAY THE MANAGEMENT FEE FROM THE PARKING REVENUE MANAGEMENT AGREEMENT -- INCREASE BY 3% ANNUALLY. IT WILL HAVE AN INCENTIVE-BASE REVENUE SHARING THAT APPLIES ONLY TO NEW REVENUES CREATED DIRECTLY BY PARKING CONTRACTOR. GRADUATED PERCENT BASED UPON YEAR OVER YEAR REVENUE INCREASE, 2.5% REVENUE FOR ZERO TO 4 MILLION INCREASE, 5% OF REVENUE FOR 4 TO 8 MILLION REVENUE INCREASE AND [INDISCERNIBLE] SP PLUS IS A LEADER IN AIRPORT PARKING MANAGEMENT AND IN 160 COMMERCIAL AIRPORTS THROUGHOUT THE UNITED STATES INCLUDING THE HOUSTON AIRPLANES SYSTEM, DFW, AUSTIN-BERGSTROM, EL PASO AND LAREDO INTERNATIONAL. OUTSIDE OF TEXAS THEY PROVIDE SERVICES TO LAX, PHOENIX AND BOSTON. OVERALL THE FIRM HAS 20,000 EMPLOYEES AND MANAGES -- AS I MENTIONED EARLIER, IT WILL BE A WHILE FOR THE TRAVELER TO START SEEING THE CHANGES DUE TO THE LEAD TIME FOR PURCHASE OF NEW HARDWARE AND SOFTWARE, HOWEVER WE WILL HAVE A NEW RESERVATION SYSTEM WITH THIS PACKAGE, THE NEW RESERVATION SYSTEM FOR ONLINE PARKING IS ANTICIPATED TO BE ROLLED OUT BY LATE SUMMER OR EARLY FALL TO ALLOW TIME FOR THE SOFTWARE SYSTEM TO BE LOADED AND TESTED ON OUR WEBSITE.
AND ONLINE SYSTEM ALLOWS FOR THE OPERATOR TO OPTIMIZE THE YIELD ACROSS THE PARKING CAMPUS. WITH THE SYSTEM, THE OPERATOR WILL HAVE LONGER LEAD TIMES ON OCCUPANCY TO MAKE INFORMED DECISIONS ON RESOURCE MANAGEMENT. A CONTACTLESS PAYMENT OPTION WILL BE PROVIDED WITH THE NEW EQUIPMENT AND UPGRADES. CUSTOMERS CAN USE THEIR CREDIT CARDS WITH THE CHIPS OR USE THEIR MOBILE DEVICES WITH APPLE PAY OR GOOGLE PAY WITHOUT USING A CASHIER. BAGS, INC., WITH SP PLUS WILL UNVEIL AN OPTION TO VALET CUSTOMERS FOR REMOTE CHECK-IN FOR PARTICIPATING AIRLINES. THESE CUSTOMERS WILL BE ABLE TO INTEGRATE THE BAGS' REMOTE AIRLINE CHECK-IN SERVICES AND TO THE RESERVATION PLATFORM. SP PLUS WILL PURCHASE NEW SHUTTLES, BUT WILL INITIALLY BE ASSIGNED THE CITY'S FLEET UNTIL THE NEW SHUTTLES ARE ARRIVED. AS PART OF THE EQUIPMENT UPGRADE, CUSTOMERS WHO MAKE THE RESERVATIONS OR HAVE ACCESS TO THE RESERVATIONS ON A MOBILE DEVICE WILL BE ABLE TO USE A CONTACTLESS SYSTEM THROUGHOUT -- THROUGH THEIR MOBILE DEVICE. ADDITIONALLY, SECURITY SERVICES WILL BE OF THE UTMOST IMPORTANCE. THEY WILL HAVE TWO DEDICATED ROVING SECURITY GUARDS PATROLLING THE PARKING FACILITIES 24 HOURS A DAY.
THE FIRM HAS IMPLEMENTED SERVICE ORGANIZATION COMPLIANCE TO MONITOR INTERNAL SYSTEMS, WHETHER THAT BE IN THE PAYMENT CARD INDUSTRY COMPLIANCE THROUGH REGULARLY ASSESSING EXTERNAL NETWORKS, CHANGE MANAGEMENT PO POLICIES TO PREVENT UNAUTHORIZED CHANGES AND PROTECT CUSTOMER DATA AND ENSURING SYSTEM FUNCTIONALITY.
SP WILL HAVE ONSITE PARKING SUPERVISORS, SHUTTLE DRIVERS, AMBASSADORS AND VALET ATTENDANTS 24/7. SP WILL BRING ON A GENERAL MANAGER, ASSISTANT MANAGERS, MARKETING AND FINANCE MANAGERS AS WELL AS THEIR OWN ADMINISTRATIVE CLERKS, AS WELL AS SECURITY THAT WILL WORK WITH AVIATION SECURITY. AVIATION WILL PROVIDE CONTRACT ADMINISTRATION AND COMPLIANCE, THE CITY WILL CONTINUE TO SET THE MAXIMUM DAILY PARKING RATES. WE WILL CONTINUE TO BE RESPONSIBLE FOR THE INFRASTRUCTURE AND THE INTEGRITY THEREOF OF THE FACILITY, AND WE WILL ASSIGN OUR CURRENT ASSETS SUCH AS OUR SHUTTLES FOR
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SP TO UTILIZE. WE SPOKE WITH THE PARKING DIVISION BEFORE THE B SESSION IN SEPTEMBER OF 2022, BUT BEGAN MORE FORMAL DISCUSSIONS WITH THE SOLICITATION -- WHEN THE SOLICITATION WAS RELEASED IN MARCH OF 2023. WE'VE HAD 18 TOWN HALL BRIEFINGS WITH THE AVIATION LEADERSHIP TEAM WITH PARKING EMPLOYEES TO ENSURE TRANSPARENCY THROUGHOUT THE OPTIMIZATION PROCESS. I CANNOT GIVE ENOUGH CREDIT TO RENE FRIEDA AND THE ENTIRE HR TEAM FOR THE WORK THEY'VE DONE TO HELP US THROUGHOUT THIS ENTIRE PROCESS. CRYSTAL STRONG AND THE TWO HR REPRESENTATIVES AT THE AVIATION DEPARTMENT HAVE BEEN LOCK STEP WITH US THROUGHOUT THE ENTIRE PROCESS TO PROVIDE ONE-ON-ONE SUPPORT AND GUIDANCE FOR CAREER PLANNING. HR HAS ALSO PROVIDED THREE WORKSHOPS TO HELP EMPLOYEES ON THE PROFESSIONAL DEVELOPMENT, INCLUDING RESUME WRITING AND OTHER POSITIONS WITHIN THE CITY.AS THE CITY MANAGER REFERENCED, NO PARKING EMPLOYEE WILL LOSE A POSITION WITH THE CITY DUE TO THE PARKING OPTIMIZATION.
WE WILL RELOCATE THE EMPLOYEE INTO OTHER POSITIONS WITHIN THE AVIATION DEPARTMENT, INCLUDING THE CONTRACT ADMINISTRATION OR COMPLIANCE AREAS THAT I MENTIONED ON THE PREVIOUS SLIDE OR INTO OTHER DIVISIONS WITHIN THE DEPARTMENT OR THE CITY. WE ALSO KNOW SOME ARE INTERESTED IN MEETING WITH THE NEW PARKING CONTRACTOR AND SEEING WHAT THEIR OFFER WOULD BE. WE'VE ENCOURAGED THEM AS WELL, IF THEY'RE INTERESTED. WE HAVE ALSO HEARD THAT SOME OF THE EMPLOYEES ARE LOOKING, YOU KNOW, TO -- MOVE ON TO OTHER DEPARTMENTS, AND THAT'S OKAY WITH US AS WELL.
WE ARE COMMITTED TO CONTINUE TO WORK WITH EACH EMPLOYEE THROUGHOUT THIS PROCESS. LASTLY, I'LL PROVIDE A PRESOLICITATION BRIEFING FOR THE CITY SERVICES FOR THE SAN ANTONIO INTERNATIONAL AIRPORT.
THIS IS FOR THE SCOPE OF SERVICES FOR THE ABILITY TO SELECT A RESPONDENT THAT WILL MANAGE A PROGRAM TO PROVIDE SUPERVISED SECURITY PERSONNEL FOR THE SERVICES THAT INCLUDE BUT NOT LIMITED TO THE STERILE AREA AND THE NONSTERILE AREA, DUTIES INVOLVING ELEVATED NATIONAL TERRORISM ADVISORY SYSTEM SECURITY INCIDENCE, CUSTOMER SERVICE AT CHECKPOINTS AT ENTRY AND EXIT LANES AND OTHER SECURITY DUTIES AS NEEDED. THE ESTIMATED VALUE OF THAT CONTRACT IS $8 MILLION. THE TERM IS THREE YEARS, WITH TWO ONE-YEAR OPTIONS, AND THE FUNDING SOURCES COME FROM OUR O & M FUND.
THE VALUATION COMMITTEE CONSIST OF JEFF COYLE, RYAN ROCHA, STEVEN, ANTHONY, WHO'S PART OF SAPD, MONICA MCKNIGHT, CRYSTAL SANCHEZ, WHO'S A SENIOR MANAGEMENT COORDINATOR IN AVIATION AND ROBERT TO [INDISCERNIBLE] FROM HOUSTON AIRPORT SYSTEM AS AIRPORT SECURITY COORDINATOR. THE EVALUATION CRITERIA IS 40 POINTS FOR EXPERIENCE, BACKGROUND AND QUALIFICATIONS, 40 POINTS FOR THE PROPOSED PLAN, 15 POINTS FOR PRICING AND FIVE POINTS FOR SBEDA.
MAYOR AND COUNCIL, THAT CONCLUDES OUR PRESENTATION AND WE'LL MAKE OURSELVES AVAILABLE FOR ANY QUESTIONS. THANK YOU.
>> MAYOR NIRENBERG: GREAT. THANK YOU VERY MUCH, JESUS, FOR THE UPDATE.
WE'LL GO RIGHT INTO COUNCIL DISCUSSION. WE'VE GOT A QUEUE
ALREADY, COUNCILMEMBER ROCHA GARCIA? >> GARCIA: THANK YOU, MAYOR. THANK YOU, JESUS, FOR THE PRESENTATION AUDIO] BREAKING MONTH. I WAS WONDERING ABOUT THE DISABLED VETERANS CURRENTLY SAT ALLOWS 100% DISABLED VETERANS TO PARK FOR FREE.
AND I'M JUST WONDERING IF THAT'S GOING TO BE CONTINUED WITH THE NEW
PARKING OPERATOR. >> SAENZ: THAT WILL BE CONTINUED.
THERE ARE NO CHANGES TO THE EXISTING PRICING FORMAT THAT WE HAVE FOR DISABLED VETERANS. OBVIOUSLY, THERE ARE SOME, YOU KNOW, OPTIONS WE'D LIKE TO CONSIDER, BUT THAT'S NOT INCORPORATED INTO THIS DECISION AT ALL. EVERYTHING WILL REMAIN THE SAME.
>> GARCIA: THANK YOU. AND THEN THE OTHER ONE IS HOW MANY COSA EMPLOYEES ARE ELIGIBLE FOR RETIREMENT? [INAUDIBLE]
SPECIFICALLY. >> SAENZ: INSIDE THE PARKING DIVISION? I DON'T HAVE THAT NUMBER OFFHAND, WE CAN GET IT HERE PRETTY SOON.
I KNOW I'VE GOT TOM AND CRYSTAL HERE THAT CAN PROBABLY LOOK THAT UP
RATHER QUICKLY AND TELL YOU THE EXACT NUMBER. >> GARCIA: GOT IT.
SO THERE'S NO JOBS BEING ELIMINATED, PRETTY MUCH, RIGHT?
>> SAENZ: CLARIFY. THERE ARE NO -- SOME JOBS MAY BE ELIMINATED HERE, BUT WHAT WE'RE FOCUSED ON ARE THE THE 34 EMPLOYEES WE HAVE, THE COMBINATION OF EITHER THEY WILL MOVE INTO EXISTING AIRPORT POSITIONS, EXISTING CITY POSITIONS, THEY'LL RETIRE OR TAKE EMPLOYMENT WITH THE CONTRACT OR IF THEY CHOOSE TO BUT WHEN YOU SAY JOB, I'M THINKING OF POSITIONS. SOME OF THOSE POSITIONS WILL NO LONGER BE THINGS
WE DO, SO THAT'S WHY WE'RE TRANSITIONING. >> GARCIA: GOT IT.
BUT NOBODY WILL BE NEGATIVELY AFFECTED? OKAY.
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AND THEN SO WILL THE BENEFITS CARRY OVER WHEN THEY MOVE TO THE NEWOPERATOR, OR DO THEIR BENEFITS CHANGE? >> SAENZ: NO, MA'AM.
THAT'S A SEPARATE PACKAGE. THERE IS A COMPLETE COMPREHENSIVE BENEFITS PACKAGE THAT'S BEING OUTLINED AND PROVIDED TO THE EMPLOYEES, BUT IT WILL NO LONGER CONTINUE SERVICE WITH COSA.
>> WALSH: YES, THE BENEFIT PACKAGE WILL CHANGE.
>> GARCIA: BUT IT WON'T BE WORSE? >> WALSH: THAT'S WHAT THEY'RE EVALUATING. WE HAVE SOME EMPLOYEES THAT ARE ELIGIBLE TO RETIRE FROM THE CITY. THEY MAY RETIRE AND THEN GO WORK FOR THE CONTRACTOR. IT DEPENDS ON THEIR -- WHERE THEY'RE AT IN TERMS
OF THEIR TENURE WITH THE CITY. >> GARCIA: OKAY.
BUT THEY HAVE KIND OF LIKE THE SAME LEVEL OF BENEFITS THAT WE OFFER.
>> SAENZ: THEY DO. SO THEY'RE COMPARABLE. >> GARCIA: OKAY.
>> SAENZ: AND WE'VE ENCOURAGED THAT IN THE SOLICITATION PROCESS TO SAY, YOU'VE GOT TO MATCH AS CLOSELY AS POSSIBLE. ARE THEY EXACT? I WILL TELL YOU, NO, THAT THEY ARE NOT, BUT THEY'RE VERY CLOSE.
AND THE ONE THING THAT I WANT TO EMPHASIZE AS I STATED THE HR INVOLVEMENT, EACH INDIVIDUAL EMPLOYEE HAS BEEN MET WITH INDIVIDUALLY AND WORKING WITH THEM ALL. EVERY ONE OF THEM HAS A DIFFERENT SITUATION, AND THE TENDER, THE TLC THAT'S BEEN GIVEN BY HR AND OUR LEADERSHIP TO EACH EMPLOYEE HAS BEEN INCREDIBLE TO MAKE CERTAIN THAT EVERYONE KNOWS. SOME ARE EXCITED AND READY TO MOVE ON BECAUSE THEY HAVE NEW OPPORTUNITIES, AND SOME ARE EXCITED BECAUSE THEY HAVE SOME PROMOTIONS THAT ARE ALREADY BEING SET FOR THEM, SO A LOT OF GOOD OPPORTUNITIES FOR A LOT OF OUR EXISTING EMPLOYEES
INSIDE THE PARKING DIVISION. >> GARCIA: AWESOME.
WONDERFUL. THOSE ARE MY QUESTIONS, BUT I HAVE TO SAY, I LOVE YOUR NEW BRANDING, I LOVE THE COLORS AND EVERYTHING.
>> SAENZ: THANK YOU. >> GARCIA: SO IT'S INCREDIBLE.
THANK YOU, MAYOR. THANK YOU, JESUS. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ROCHA GARCIA. COUNCILMEMBER CASTILLO?
>> CASTILLO: THANK YOU, MAYOR. THANK YOU, JESUS AND TEAM FOR THE PRESENTATION. IT'S ALWAYS QUITE EXCITING GETTING THESE QUARTERLY UPDATES ON THE MOVEMENT OVER AT THE AIRPORT AND BE BROUGHT UP TO SPEED ON THE FEDERAL GRANTS THAT FOLKS ARE GOING AFTER.
I AM REALLY EXCITED TO SEE THE PASSENGER COUNTS GO UP, AND I WOULD ALSO ECHO THAT THE NEW LOGO IS -- IT'S CLEAN, IT'S REALLY NICE, AND I'VE BEEN WEARING THAT SHIRT MULTIPLE TIMES, AND FOLKS ARE LIKE, YOU KNOW, THEY HAVE A LOT OF QUESTIONS AROUND IT. SO IT'S GREAT.
IT'S BRINGING A LOT OF ATTENTION TO THE SAIRPTD.
SANANTONIO INTERNATIONAL AIRPORT. I DID HAVE A QUESTION REGARDING THE INITIAL SCORING MATRIX. I SEE WITH THE FINANCIAL SUBMISSION, IT'S ONE AREA WHERE SP PLUS DIDN'T FAIR THAT WELL IN COMPARISON TO ITS COMPETITORS, BUT, OF COURSE, IN THE OTHER BUCKETS THEY EXCEED THEIR COMPETITORS. CAN YOU LEM ME UNDERSTAND THE FINANCIAL SUBMISSION COMPONENT AND WHAT WERE -- WHAT WAS THE COMMITTEE LOOKING FOR WITHIN THAT PIECE, WITHIN THAT BUCKET FOR THE FINANCIAL SUBMISSION?
>> SAENZ: I'LL GIVE YOU A REALLY QUICK ANSWER, AND THEN I'LL ASK TROY TO COME UP AND SPEAK A LITTLE BIT ABOUT IT. I CAN TELL YOU THAT EACH OF THE RESPONDENTS HAD A PRO FORMA THAT WAS PROVIDED TO US.
WE TOOK THAT INTO CONSIDERATION. THERE WAS A TOTAL SEPARATE FINANCIAL EXERCISE THAT WAS GIVEN. OBVIOUSLY AS I MENTIONED IN THE ENTIRE PRESENTATION, YOU KNOW, WE WANT TO FOCUS ON INCREASING OUR REVENUES TO HELP PAY FOR THE CAPITAL THAT WE'RE PUTTING INTO PLAY TO CONTINUE TO KEEP OUR COSTS AS LOW AS POSSIBLE AND CONTINUE TO ATTRACT AIRLINES TO WANT TO, YOU KNOW, OPERATE AT OUR AIRPORT. SO THAT'S WHAT I'LL SHARE WITH YOU ON THAT, AND THEN I'LL TURN IT OVER TO TROY TO GIVE YOU A LITTLE BIT MORE SPECIFICITY ON
THE FINANCIAL SUBMISSIONS. >> CASTILLO: THANK YOU.
>> I THINK JESUS COVERED IT PRETTY WELL. WE DID A 10-YEAR PRO FORMA, BECAUSE TO JESUS' POINT, WE WANTED TO SEE HOW THEY COMPARED AS FAR AS AS THE REVENUE THEY WERE GOING TO GENERATE COMPARED TO SOME OF THE OTHER RESPONDENTS BASED ON SOME OF THE INNOVATIVE SOLUTIONS THEY WERE GOING TO PUT INTO PLACE. WE ALSO WANTED TO SEE HOW THEY WERE GOING TO MANAGE THEIR EXPENSES. SO THAT NET BENEFIT TO THE CITY IS HOW WE SCORED THE ACTUAL RESPONDENTS, AND THEY WERE A LITTLE BIT LOWER.
>> CASTILLO: THANK YOU. THAT'S HELPFUL. I DO APPRECIATE Y'ALL'S FOCUS ON THE CURB TO FLIGHT. RECENTLY, I USED THE AIRPORT PARKING LOT FOR THE FIRST TIME, BUT I DIDN'T DRIVE THERE, RIGHT? I HAD MY CAR DROPPED OFF THERE.
AND WHEN I GOT TO THE AIRPORT, IT WAS KIND OF LIKE A SOCIAL EXPERIMENT TO MAKE MY WAY TO THE PARKING LOT, IT WAS JUST LIKE AN OUTDOOR EXPERIMENT, RIGHT? SO I TRY TO FIND MY WAY WITHOUT ASKING FOR ASSISTANCE, BUT I WAS ALSO PEOPLE WATCHING TO SEE HOW OTHER INDIVIDUALS WERE TRYING TO NAVIGATE THEIR WAY TO FIND THE PARKING LOT.
AND IT WAS A BIT -- THERE WASN'T ENOUGH SIGNAGE, RIGHT, TO DIRECT YOU TO GET TO THE AIRPORT, SO I UNDERSTAND Y'ALL ARE LOOKING AT CURB TO FLIGHT, IF YOU COULD ALSO LOOK AT WHAT IT LOOKS LIKE WHEN YOU'RE COMMUTING TO THE PARKING LOT, BECAUSE, RIGHT, I WAS USING IT AS AN OPPORTUNITY TO JUST NAVIGATE AND LEARN AND PEOPLE WATCH, BUT, OF COURSE, THERE'S FOLKS THAT ARE HERE TRYING TO GET FROM POINT A TO POINT B, AND IT WAS JUST DIFFICULT. AND I DID GET LOST A COUPLE TIMES, BUT, AGAIN, RIGHT, I WAS JUST HAVING THE TIME OF MY LIFE WALKING AROUND THE PARKING LOT, JUST TRYING TO OBSERVE THE SPACE.
SO I THINK IF THAT'S SOMETHING WE CAN ALSO LOOK INTO, GETTING OUR WAY FROM THE AIRPORT BACK TO THE PARKING LOT WOULD BE HELPFUL.
[00:30:01]
>> SAENZ: REALLY APPRECIATE THE FEEDBACK. IT'S REALLY IMPORTANT, TOM AND RYAN THAT ARE SITTING BEHIND ME CAN ATTEST I TOOK THEM TO THE FURTHEST POINT WALKING IN THE PARKING GARAGE SO WE CAN KNOW EXACTLY WHAT PASSENGERS EXPERIENCE, WHETHER YOU'RE IN THE LONG-TERM GARAGE OR THE SHORT-TERM GARAGE, SO YOUR FEEDBACK IS VERY HELPFUL.
AND SP PLUS IS HERE, SO WE WILL CONTINUE TO COLLABORATE ON HOW WE CAN IMPROVE THE SIGNAGE AND MAKE IT EASIER FOR OUR PASSENGERS.
>> CASTILLO: AT ONE POINT, I WAS LIKE THIS IS LIKE AN OUTDOOR ESCAPE ROOM. HOW DO I GET OUT. THANK YOU, JESUS.
THANK YOU, MAYOR. >> MAYOR PRO TEM: THANK YOU, COUNCILWOMAN.
COUNCILWOMAN CABELLO HAVRDA? >> HAVRDA: THANK YOU.
I'M STILL LAUGHING AT THAT COMMENT. I'M SORRY.
THANK YOU, OF COURSE, JESUS, FOR THE PRESENTATION AND CONGRATULATIONS TO YOU AND JEFF AND YOUR TEAMS ON THE 30 MILLION IN GRANTS. WE'RE KEEPING OUR FINGERS CROSSED.
WE'LL DO WHAT WE HAVE TO DO TO GET THIS 26.5 MILLION IN POTENTIAL GRANTS, BUT IT'S AN AMBITIOUS PLAN. WHEN YOU CAME IN TO US, YOU WERE -- YOUR VISION OF FUNDING AN AIRPORT EXPANSION, I THINK IT WAS SOMETHING LIKE A TOTAL OF 300 MILLION, AND, YOU KNOW, THAT WAS A LITTLE DAUNTING FOR US, BUT IT'S HAPPENING. AND IT'S REALLY EXCITING TO SEE IN A REALLY SHORT TIME -- RELATIVELY SHORT AMOUNT OF TIME WE'RE SEEING IT COME TO FRUITION, SO WE'RE THANKFUL.
THE PLANS FOR THE PARKING LOT, THE PARKING CONTRACT ALSO SOUND AMBITIOUS AND INNOVATIVE, AS YOU KNOW, I HAD CONCERNS ABOUT THE CITY EMPLOYEES.
BUT I FEEL ASSURED KNOWING THAT YOU WORKED WITH THE EMPLOYEES DIRECTLY, WORKED WITH ASK ME AND EVERYBODY'S ON THE SAME PAGE, AND THAT'S MEANINGFUL TO ME, SO I FEEL CONFIDENT MOVING FORWARD WITH THE -- THAT OUR CITY EMPLOYEES ARE GOING TO BE TAKEN CARE OF.
YOU KNOW, WE TALKED A LITTLE BIT BEFORE, BUT I HAD A LONG, LONG TIME AGO, SO NOBODY TAKE THIS PERSONALLY, WHEN I WAS WORKING FOR A LAW FIRM, I TRAVELED ONCE A WEEK AT LEAST BY PLANE, I WOULD PARK OFFSITE.
IT WAS JUST MORE CONVENIENT, VERY HONESTLY.
IT WAS MORE CONVENIENT AND I FELT LIKE MY VEHICLE, WHEN I LEFT IT THERE FOR A COUPLE OF DAYS, WOULD BE SECURE. SO I EXPLAINED THAT SITUATION TO YOU AND IN GOING FORWARD AS YOU'RE LOOKING AT THE INNOVATION FOR THE PARKING, WE HAVE TO MAKE IT, NUMBER ONE, SAFE, FOR THE INDIVIDUALS AND THEIR PROPERTY, BUT ALSO CONVENIENT, RIGHT? AT THE END OF THE DAY, WE HAVE TO BE COMPETITIVE, AND SO MAKING IT AS CONVENIENT AS POSSIBLE, I THINK, IS WHAT'S GOING TO HELP US TO MAKE A SUCCESSFUL PARKING PLAN.
SO A LOT OF THE ONSITE AND THE -- INCREDIBLE, I THINK, THAT'S THE RIGHT DIRECTION THAT WE NEED TO BE MOVING IN. SO I APPRECIATE THAT, THAT INNOVATION.
YOU TALKED ABOUT THE SPECIFICS OF THE CONTRACT, AND I'M JUST KIND OF, YOU KNOW, EXCITED ABOUT THE TECHNOLOGY.
AND WONDERING ABOUT, IF YOU COULD TELL US A LITTLE BIT MORE ABOUT
RESERVING THE SPACE AHEAD OF TIME. >> SAENZ: CERTAINLY.
SO THE BEST EXAMPLE I CAN GIVE YOU, AND I'M GOING TO GIVE IT MY SHOT TO TRY AND MAKE IT AS SIMPLE AS POSSIBLE, WE'RE REALLY SPOILED IN A LOT OF WAYS, THESE DAYS, WHETHER WE'RE GOING TO DO UBER EATS OR TRYING TO, YOU KNOW, PREORDER AT A RESTAURANT IN ADVANCE AND JUST GO PICK UP -- I HAVE TWO DAUGHTERS AND THEY DO IT ALL THE TIME, SO... IT'S APP BASED, AND THAT'S EXACTLY WHERE THE PARKING RESERVATION SYSTEM WILL GO.
IT W WILL GO TO AN APP BASE. SO IN THE FUTURE, PROVIDING WE APPROVE THIS AND WE GO FORWARD WITH IT, WHAT MAKES IT VERY ATTRACTIVE FOR OUR PASSENGERS THAT ARE COMING FROM -- YOU KNOW, WE HAVE OVER 2 MILLION PEOPLE THAT RESIDE HERE IN THE SAN ANTONIO, BUT OUR GEOGRAPHICAL USERS ARE FIVE-POINT SOME MILLION AROUND, SO AS PEOPLE ARE COMING FROM DIFFERENT FAR DESTINATIONS, THEY WANT TO HAVE SOME ASSURANCES THAT THEY HAVE A PARKING SPOT, WHETHER THAT BE ON A SURFACE AREA, LONG-TERM GARAGE OR SHORT-TERM GARAGE, THIS WILL PROVIDE THE OPPORTUNITY, BASED ON A NUMBER OF DIFFERENT YIELD MANAGEMENT STRATEGIES THAT WILL BE INSTITUTED BY THE PARKING OPERATOR TO SAY YOU CAN MAKE RESERVATIONS AND HOLD YOUR SPOT, YOU'LL COME IN AND YOU KNOW.
WE CAN START TO PREDETERMINE EXACTLY THE FLOW RATES THAT ARE GOING TO BE COMING IN AND OUT OF THE PARKING GARAGES AS WE GO FORWARD, THAT HE HELPS ALL OF OUR TEAMS BETTER MANAGE EVERYTHING THAT WE'RE DOING.
THAT'S WHAT I WOULD GIVE YOU. ANOTHER INTERESTING, EXCITING ONE IS THE ABILITY TO DROP OFF YOUR BAGS AT THE VAI LAY, SO PICTURE COMING IN AT THE VA LAY, CHECKING IN YOUR BAGS, YOUR BAGS GO AND YOU'RE WALKING STRAIGHT TO THE TSA CHECKPOINT WITH A REMOTE CHECK-IN OPPORTUNITY. THAT IS ANOTHER BIG CONVENIENCE THAT IS NOT OFFERED AT ZERO MANY OTHER AIRPORTS THAT PROVIDES AND ENHANCES THE OVERALL SERVICES THAT WE HAVE VERSUS THAT WE DO TODAY.
THOSE ARE TWO THAT I'D GIVE YOU THAT ARE JUST REALLY EXCITING AND WE'RE
EAGER TO GET STARTED WITH. >> HAVRDA: THANK YOU FOR THAT ANSWER. THOSE THAT MAYBE CAN'T AFFORD THE VALET, IS
[00:35:03]
THE -- IS THE NEW -- ARE THE NEW PARKING OPTIONS GOING TO BE ASAFFORDABLE, AT LEAST, AS THE CURRENT OPTIONS? >> SAENZ: SO EVERYTHING THAT WE HAVE DEMONSTRATED AND PROVIDED TO YOU TODAY INCORPORATES NO CHANGES
TO OUR PRICES TODAY. >> HAVRDA: AND I THINK -- I RECALL THAT THE CONTRACTOR OR THE GROUP THAT WE'RE WORKING WITH, THEY'RE GOING TO INCUR A
LOT OF THE COST OF THE PROPOSED INNOVATION? >> SAENZ: IT'S THE REASON THE TERM IS THERE, RIGHT? SO AS THERE IS EQUIPMENT ACQUISITIONS, AS THERE IS SOFTWARE AND APPLICATION UPDATES, IT'S A 10-YEAR CONTRACT TO ALLOW THEM TO BE CREATIVE AND BRING NEW IDEAS AND TRENDS.
THE FINANCE TEAM, AS I TELL YOU, THE HR TEAM, TROY AND HIS TEAM HAVE BEEN INCREDIBLE WORKING WITH MICHAEL GARNET, OUR FINANCE AND ADMINISTRATION OFFICER THAT WORKS WITH US AT THE AIRPORT, ENSURING THAT WE'RE LOOKING AT EVERY NICKEL AND DIME, AS HOW WE'RE DOING THIS.
AND IT'S VERY FAVORABLE FOR US, AS WE LOOK AT WHAT WE MAKE IN REVENUE TODAY VERSUS WHAT WE COULD MAKE BASED ON THE PRO FORMAS THAT WERE PROVIDED TO US. ANOTHER QUESTION THAT JEFF MENTIONED, TOO, AS WE TALK ABOUT THE REVENUE PIECE, WHILE THE REVENUE IS IMPORTANT, OUR EMPLOYEES WERE IMPORTANT AS WELL, SO THE WAGES THAT THEY OFFERED WERE TAKEN INTO CONSIDERATION BASED ON THE DECISIONS THAT WE WERE MAKING TO MAKE CERTAIN THE EMPLOYEES WERE WELL TAKEN CARE OF AS WELL.
>> HAVRDA: TALKED ABOUT TRANSPORTATION INFRASTRUCTURE AS A BIG PART OF THAT IS OUR AIRPORT. AND WHAT I WAS REALLY PLEASED TO SEE, AND JENNA SAUCEDA [INDISCERNIBLE] WAS ON THE PANEL WITH ME, WAS THE REACTION FROM THE GROUP -- THE AUDIENCE WAS VERY POSITIVE TOWARDS THE AIRPORT. I KNOW WE'VE TALKED ABOUT THIS, BUT A FEW YEARS AGO, IT WAS NOT. THERE WAS A BIG DARK CLOUD OVER OUR AIRPORT.
SO TO HEAR KIND OF THE GENERAL PUBLIC REALLY UNDERSTANDING WHAT WE'RE DOING AT THE AIRPORT AND THE BENEFITS AND BEING POSITIVE ABOUT IT, I THINK IS ANOTHER REASON HOW WE'VE COME A LONG WAY IN THE LAST FEW
YEARS. >> SAENZ: THANK YOU FOR THAT, COUNCILWOMAN.
A BIG TESTAMENT TO THE ENTIRE TEAM -- OVER THE OPS AND MAINTENANCE, THE WORK THAT THE ENTIRE TEAM DOES HAS BEEN INCREDIBLE TO SHIFT THAT NEGATIVE CONNOTATION FROM THE
AIRPORT MAKING IT A POSITIVE ONE. >> HAVRDA: THANK YOU SO
MUCH. THANK YOU, MAYOR. >> MAYOR PRO TEM: THANK YOU, COUNCILWOMAN. COUNCILMAN MCKEE-RODRIGUEZ?
>> MCKEE-RODRIGUEZ: THANK YOU, MAYOR PRO TEM. I HAVE JUST MAYBE THREE OR FOUR QUESTIONS. NUMBER ONE -- NOTES A DIFFERENCE BETWEEN $309 MILLION DEPOSITED INTO THE AIRPORT AND OPERATING MAINTENANCE FUND VERSUS $376 MILLION ANTICIPATED REVENUE THROUGH THIS CONTRACT, WHY THE DIFFERENCE? OR WHERE IS THE BULK OF THAT COMING FROM? BECAUSE THAT'S 10S OF
MILLIONS OF DOLLARS? ELIZABETH EL >> ELLIOTT: AS I MENTIONED EARLIER, BASED ON THE INNOVATION, PUTTING THE REVENUES IN PLACE AND WHAT THEIR EXPENDITURE PROFILE LOOKS LIKE.
SO WE COMPARED THAT TO IF WE DID NOTHING AS AN AIRPORT AND WE CONTINUED OUR PARKING OPERATIONS INTO ANOTHER 10 YEARS, COMPARED THE TWO, AND THAT IS REALLY THE NET. WE AVERAGE ABOUT $5.5 MILLION A YEAR MORE
BY MOVING TO THIS PARKING OPERATION CONTRACT. >> COUNCILMAN, I THINK IT'S REALLY CRITICAL TO UNDERSTAND HE MENTIONED YIELD MANAGEMENT.
WHAT THAT ULTIMATELY MEANS IS GETTING VEHICLES IN SPOTS THAT MIGHT NOT OTHERWISE BE FILLED. SO WE'RE TRYING TO YIELD THE MAXIMUM REVENUE OUT OF OUR EXISTING ASSET. AND SO THE WAY THEY DO THAT IS THEY DISCOUNT PRICES DURING DOWNTIMES WHEN -- AND GET SOMEBODY OUT OF AN UBER INTO THEIR CAR PARKING AT A 50% RATE AND THEY'RE PARKING AT A SPOT THAT MIGHT HAVE GONE OTHERWISE EMPTY. SO THEIR WHOLE -- AS TROY MENTIONED, THEIR WHOLE PRO FORMA WAS BASED ON NO CHANGE IN RATES AT THIS TIME AND HOW MUCH MORE REVENUE COULD THEY GENERATE BY YIELDING THE BEST RETURN ON OUR EXISTING ASSET. THAT'S INTERESTING. THOSE WERE TWO NUMBERS THAT PIQUED MY INTEREST. THE NEXT I'M HEARING THAT OVERALL EMPLOYEES ARE GOOD AND WE'RE CONFIDENT -- I DO HAVE TO ASK A FEW QUESTIONS JUST TO -- IT'S AN OBLIGATION IN MY HEART, RIGHT? LOOKING AT SLIDE 19, HOW MANY TOTAL EMPLOYEES ARE THERE IN THIS SPECIFIC AREA?
>> SAENZ: SO TODAY CURRENTLY WE HAVE 34 POSITIONS,
COUNCILMEMBER. 34 EMPLOYEES. >> MCKEE-RODRIGUEZ: SO THEY'RE STAYING THERE OR GOING TO BE RETIRING. AND THE FIVE POSITIONS GOING TO BE ELIMINATING, CAN YOU WALK THROUGH ONE MORE TIME WHAT'S HAPPENING WITH THOSE PEOPLE? THOSE ARE THE ONES THAT
ARE GOING TO BE -- >> SAENZ: THOSE ARE VACATED POSITIONS.
THERE'S NOT A PERSON IN THAT JOB. KNOWING THAT WE WERE MOVING IN THIS DIRECTION, AS WE CONTINUE TO MOVE FORWARD, WE SLOWLY HAVE
[00:40:01]
BEEN SUPPLEMENTING OUR STAFF WITH EITHER EXISTING AVIATION STAFF THAT HAVE BEEN ASKED TO HELP AND SUPPORT, SO THAT'S HOW WE'VE BEEN ABLE TO MANAGE THE OPERATION AS WE'VE GONE THROUGH.SO THAT'S WHERE WE RESIDE TODAY. EACH ONE OF THOSE HAS A -- HAS A TARGET DIRECTION OF WHERE THEY WANT TO GO.
COUNCILWOMAN ROCHA GARCIA, YOU ASKED ME, THEY JUST GAVE ME THE NUMBER. NINE ARE ELIGIBLE FOR RETIRING.
AND SOME MAY RETIRE AND TAKE THEIR RETIREMENT WITH THE CITY, AND THEN CONTINUE TO WORK AND COLLECT TWO PAYCHECKS THAT WILL PUT THEM IN A REALLY GOOD POSITION. AND THEY'RE EXCITED ABOUT THAT, OF WHERE THEY EXIST TODAY, THEY'LL CONTINUE TO WORK IN THE SAME LOCATION, AND THEY'RE EXCITED ABOUT THAT. AND I CAN GO ON, EXAMPLE OVER EXAMPLE OF THE WORK THAT THE HR TEAM HAS DONE AND, YOU KNOW, THE TEAM THAT RYAN AND TOM HAVE DONE, TAKING TIME, INDIVIDUALLY SPEAKING TO EVERY EMPLOYEE TO MAKE CERTAIN EVERYONE KNOWS THEIR NEXT COURSE. WE'RE NOT GOING TO LEAVE
ANYBODY BEHIND. >> MCKEE-RODRIGUEZ: I DO HAVE -- THE QUESTION I HAVE REGARDING THE EVALUATION COMMITTEE, AND I THINK IT'S A LARGER POINT I WANT TO MAKE, HOW DID THE EVALUATION COMMITTEE SCORE THE PROPOSED COMPENSATION PACKAGE? I KNOW THAT'S NOTED ON SLIDE 12, BUT I'M WONDERING HOW THAT FACTORED INTO THE OVERALL
POINTS ON SLIDE 13 AND 14? >> SAENZ: THE HR TEAM EVALUATED AND THEN GAVE US A PRESENTATION BASED ON WHAT EACH OF THEM WERE PROVIDING THAT WERE COMPARABLE TO THE EXISTING BENEFITS AND COMPENSATION PACKAGES THAT THEY HAVE WITH COSA TODAY.
>> CKEE-RODRIGUEZ: GOT YOU. SO IT'S JUST A CONSIDERATION, IT'S NOT NECESSARILY, YOU KNOW, THESE DESIGNATED POINTS,
IT'S NOT LIKE THAT. >> SAENZ: YES, SIR. >> MCKEE-RODRIGUEZ: I GUESS I'M WONDERING -- AND I KNOW THAT THIS SOLICITATION IS PRETTY MUCH OVER AND DONE WITH, THE COMMITTEE HAS DONE ITS WORK, BUT FOR FUTURE COMMITTEES, BECAUSE I KNOW THAT THAT'S SOMETHING THAT WE ARE CONSTANTLY RESHAPING, CONSTANTLY LOOKING AT AND MAKING CONSIDERATIONS HOW ARE WE STRUCTURING THESE EVALUATION COMMITTEES, I THINK WE'VE CONSISTENTLY MENTIONED THAT WE WANT TO SEE DIVERSITY AND RACIAL MAKEUP, GENDER, BACKGROUND, ECONOMIC STATUS, ALL OF THOSE THINGS, AND I THINK THIS WOULD HAVE BEEN AN EXCELLENT OPPORTUNITY FOR A PARKING EMPLOYEE WITH KNOWLEDGE OF PARKING OPERATIONS TO BE A PART OF THE -- TO BE A PART OF THIS COMMITTEE. AND I WONDER IF THEY MIGHT HAVE WEIGHED COMPENSATION DIFFERENTLY THAN SOMEONE WHOSE MAYBE AT THE DIRECTOR OR LEADERSHIP LEVEL. AND SO I THINK FOR FUTURE EVALUATION COMMITTEES, I WOULD LIKE TO SEE THAT MAKEUP. AND I'M NOT ENTIRELY SURE HOW COMMITTEES ARE CHOSEN. IS THAT A -- IS THAT
A -- >> SAENZ: I'LL JUST SHARE WITH YOU, WE WORKED CLOSELY WITH THE PROCUREMENT TEAM, AND WE WORK REALLY, REALLY HARD TO TRY AND PUT AS DIVERSIFIED GROUP TOGETHER AS POSSIBLE.
EVERY TIME THAT WE GO OUT WITH THESE SOLICITATIONS, TAKING A BLEND OF EVERYONE TO ENSURE THAT, YOU KNOW, IT'S CROSS, YOU KNOW, FUNCTIONAL IN WHAT
WE DO. >> MCKEE-RODRIGUEZ: I SEER RICK GRABBING THE
MICROPHONE. >> WALSH: LET ME JUST ADD, I THINK I KNOW WHAT YOU'RE ASKING, BUT REMEMBER THE GOAL HERE WAS TO NOT REMAIN THE SAME. AND SO THAT'S ONE OF THE REASONS WHY WAY IN ADVANCE OF EVEN THE PRESOLICITATION WE CAME TO COUNCIL, WE HAD CONVERSATIONS WITH THE EMPLOYEES ABOUT CHANGING.
SO, YOU KNOW, IN ALL CASES, WE KNEW THAT THE END GAME, OR THE END STATE THAT WE WANTED TO BE IN WAS NOT HAVING EMPLOYEES DO THE MANUAL PROCESS THAT WE DO NOW, SO -- SO I'M NOT SURE THAT THAT WOULD HAVE BEEN HELPFUL IN THIS CASE. THERE MAY BE SOMEWHERE MAYBE EMPLOYEE CENTRIC TYPE STUFF WHERE IT'S IMPORTANT TO HAVE INPUT OF EMPLOYEES, BUT THE ASSUMPTION WOULD BE THAT THEIR JOBS WOULDN'T CHANGE AT THE END.
SO THEY -- THE VALUE OF THAT IS DIFFERENT. AND FRANKLY, ONE OF THE REASONS WHY WE SAID UP FRONT TO THEM, TO THE EMPLOYEES AND IN THE PRESOLICITATION, WAS THAT WITH 32 EMPLOYEES AND 13,000 JOBS AROUND HERE, WE CAN FIGURE OUT -- AND WE'VE BEEN DOING THIS SINCE -- WE STARTED THIS PROCESS AT THE END OF '22, WE'VE GIVEN OURSELVES A LONG ENOUGH LEAD TIME SO THAT WE CAN HAVE THAT INDIVIDUALIZED CONVERSATION WITH EACH
EMPLOYEE. >> MCKEE-RODRIGUEZ: I GOT YOU.
AND I THINK WHAT I'M TAKING AWAY IN PART FROM THAT IS THAT THERE'S CONCERN OR A GENERAL -- I'LL USE THE WORD CONCERN.
GENERAL CONCERN THAT EXISTING EMPLOYEES MIGHT BE AVERSE TO CHANGE, AND
I DON'T KNOW NECESSARILY THAT THAT'S THE -- >> WALSH: THAT'S NOT WHAT I'M SAYING. WHAT I'M SAYING IS THAT THERE'S PROBABLY SOME CASES WHERE THAT MAY MAKE A LOT OF SENSE. I DON'T THINK IT MADE A
LOT OF SENSE HERE. >> MCKEE-RODRIGUEZ: OKAY. >> WALSH: BUT I THINK EMPLOYEES DEMONSTRATE DAY IN DAY OUT IN A LOT OF DIFFERENT PLACES THAT
THEY'RE NIMBLE ENOUGH TO ADJUST. >> MCKEE-RODRIGUEZ: OKAY.
[00:45:02]
SO I GUESS JUST IN CLOSING, THIS COMMITTEE IS AND WAS FOR FUTURE COMMITTEES WHERE IT MAKES SENSE, I WOULD LOVE TO SEE, YOU KNOW, THE AVERAGE EMPLOYEE PARTICIPATE IN THE SCORING.THANK YOU. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER MCKEE-RODRIGUEZ. COUNCILMEMBER ALDARETE GAVITO.
>> GAVITO: THANK YOU, MAYOR. AND THANK YOU SO MUCH, JESUS, FOR THIS PRESENTATION. I AM GOING TO AGREE WITH COUNCILWOMAN CASTILLO AND COUNCILWOMAN DR. ROCHA GARCIA, I LOVE THE BRANDING. IT'S AWESOME. SO Y'ALL HIT IT OUT OF THE PARK WITH THAT. WE ALL KNOW THAT WE CAN'T BE A WORLD CLASS CITY WITHOUT HAVING A WORLD CLASS AIRPORT. I'M SO EXCITED TO SEE THE UPTICK IN VISITORS, OF TRAVELERS INTO THE AIRPORT.
QUICK QUESTION ON THAT, DO WE KNOW IF THESE TRAVELERS STAYED IN
SAN ANTONIO, OR DO THEY GO SOMEWHERE ELSE? >> SAENZ: I WOULD SHARE WITH YOU, COUNCILWOMAN, THAT A LARGE PERCENTAGE, 80 TO 90% OF OUR PASSENGERS, ARE WHAT WE CALL O AND D, ORIGIN TO DESTINATION.
THEY DEPART OUT OF SAN ANTONIO, THEY GO TO A DESTINATION, AND THEN THEY RETURN BACK TO SAN ANTONIO AND VICE VERSA.
PEOPLE ARE SPECIFICALLY COMING TO SAN ANTONIO. WE'RE NOT A HUB WHERE PEOPLE COME AND CONNECT, GO THROUGH THE AIRPORT AND GO ON TO ANOTHER DESTINATION. THEY COME HERE TO STAY HERE.
WE KNOW THAT BASED ON THE NUMBER OF DAYS THAT PEOPLE ARE INCREASING IN THE NUMBER OF PARKING SPOTS THAT THEY'RE TAKING UP, AND THEN WE KNOW THAT AS WELL BY THE NUMBER OF SEATS THAT ARE BEING TAKEN AND PUT INTO THE MARKET SHARE FOR SAT. AND THAT CONTINUES TO INCREASE AS WELL.
>> GAVITO: OKAY. THAT'S GREAT NEWS. THANK YOU FOR THAT.
>> SAENZ: YES, MA'AM. >> GAVITO: I ALSO THINK IN REGARDS TO THE REST OF THE PRESENTATION, YOU KNOW, IT'S IMPORTANT THAT WE RECOGNIZE THE VALUE THAT EMPLOYEES BRING TO THE TRAVELER EXPERIENCE, YOU KNOW.
COUNCILWOMAN CAS TOE OWE, WHEN YOU WERE TALKING ABOUT JUST NAVIGATING AND NOT NECESSARILY HAVING TO ASK FOR HELP, BUT WE KNOW THAT WHEN WE DO ASK FOR HELP, YOU KNOW, SOMEBODY'S KNOTTY OR RUDE TO US, I MEAN, THAT REALLY DOES SHAPE AND MOLD PEOPLE'S EXPERIENCES.
AND, JESUS, YOU DID MENTION THAT THE EMPLOYEES ARE BEING HANDLED WITH TLC, BUT I JUST WANTED TO DIVE INTO THAT A LITTLE BIT AND SEE HOW -- HOW THEY'RE BEING TAKEN CARE OF. YOU KNOW, I DON'T NEED ALL THE DETAILS, BUT I JUST WANT TO MAKE SURE THAT THAT TRANSITION INTO DIFFERENT JOBS, INTO RETIREMENT, THEM KNOWING WHERE THEIR BENEFITS ARE,
ARE BEING OUTLINED FOR THEM. >> SAENZ: CURRENTLY, I
CAN GIVE YOU A NUMBER OF DIFFERENT EXAMPLES. >> GAVITO: UH-HUH.
>> SAENZ: THE COMMUNICATION HAS BEEN CONSTANT, SO WHETHER IT'S THE 18 MEETINGS THAT WE'VE HAD AS THE LEADERSHIP TEAM IN THE AVIATION DEPARTMENT OR 150 PLUS INDIVIDUAL MEETINGS THAT HAVE BEEN HELD BY THE HR TEAM AND SOME OF OUR LEADERSHIP, WALKING EVERY SINGLE EMPLOYEE THROUGH THE PROCESS OF WHETHER IT'S, YOU KNOW, CAREER DEVELOPMENT OR WHETHER IT'S WHAT ARE YOUR INTERESTS? HOW CAN WE MATCH? WE'VE GOT SOME THAT ARE TRANSITIONING INTO THE OPERATIONAL WORLD WHERE THEY HAVE LONG -- FOR A LONG TIME HAVE WANTED TO GO INTO WHAT WE CALL THE OPS WORLD. SO THEY'RE EXCITED ABOUT THOSE OPPORTUNITIES AND THEY'RE LIKE, JESUS, WHEN ARE YOU -- WE DON'T WANT TO MEET WITH YOU ANYMORE. WE'RE TIRED OF TALKING TO YOU. LET'S GO. MAKE IT HAPPEN, BECAUSE WE'RE READY TO GO TO THE NEW OPS OPPORTUNITIES THAT WE HAVE.
WE HAVE SOME THAT ARE ALREADY PROMOTED INTO OTHER DEPARTMENTS BECAUSE THE HUMAN RESOURCES TEAM HAS BEEN WORKING WITH THEM INDIVIDUALLY ON, , YOU KNOW, SOME RESUME BUILDING AND DEVELOPMENT FOR THEM THAT HAS PUT THEM IN PRIME POSITIONS, YOU KNOW, TO CONTINUE TO PROMOTE WITHIN THE CITY.
>> GAVITO: OKAY. >> SAENZ: THOSE ARE EXCITING.
AND THEN WE JUST HAVE SOME THAT ARE LIKE, JESUS, NO DISRESPECT TO YOU, DON'T GET MAD AT ME, AS I MENTIONED, THE NUMBER WAS NINE, WE'RE GOING TO RETIRE AND WE'RE GOING TO TRANSITION OVER AND WE'RE GOING TO GO TO THE CONTRACTOR. WE WANT TO HEAR WHAT THEY HAVE TO OFFER, WE'RE READY FOR THAT. AND THEN THERE'S SOME THAT ARE JUST SAYING, HOLD ON, JESUS. WE STILL NEED SOME MORE TIME TO DECIDE, AND WE'RE GOING TO WORK WITH EACH ONE OF THOSE INDIVIDUALLY.
>> GAVITO: SO I HEARD YOU SAY THAT THE LEADERSHIP TEAM HAS MET TO STRATEGIZE HOW THEY'RE GOING TO BE TAKING CARE OF EACH EMPLOYEE, AND THANK YOU SO MUCH FOR Y'ALL'S TIME AND EFFORT ON THAT.
I KNOW IT IS TRICKY WHEN YOU'RE TALKING ABOUT TRANSITIONS LIKE THIS, BUT IF I'M ONE OF THOSE 30-SOMETHING EMPLOYEES, HOW MANY TIMES DO YOU THINK EXECUTIVE LEADERSHIP HAS MET WITH ME ON AVERAGE? SAENZ SAIPS I WOULD SAY INDIVIDUALLY, AT LEAST MORE THAN FIVE TIMES.
OVERALL, YOU KNOW, IN A NUMBER OF DIFFERENT BRIEFINGS AND SETTINGS, I WILL TELL YOU THE HUMAN RESOURCES TEAM HAS HAD A GROUP WITH TOM BARTLETT SITTING EVERY WEDNESDAY ANSWERING QUESTIONS AND SPENDING THE ENTIRE DAY
WORKING WITH THEM. >> GAVITO: OKAY. >> SAENZ: AND MAKING OURSELVES AVAILABLE TO ANSWER QUESTIONS THEY MAY HAVE.
WE'VE BEEN DOING THIS FOR OVER A YEAR NOW. >> GAVITO: OKAY.
>> SAENZ: SO EVERYONE'S HAD AMPLE OPPORTUNITY. I'VE JUST RECENTLY -- TWO
[00:50:01]
WEEKS AGO, I SPENT THREE DIFFERENT MEETINGS ON ONE DAY MEETING WITH EVERYONE, CONTINUING TO COMMUNICATE WHERE WE'RE HEADING, WHO HAS QUESTIONS. WE UNDERSTAND THE IMPORTANCE OF WHAT WE'RE DOING AND THE IMPACT IT HAS TO EMPLOYEES. YOUR QUESTION IS ABSOLUTELY RIGHT, COUNCILWOMAN, AND WE WANTED TO MAKE CERTAIN WE TOOK CARE OF THEM. CITY MANAGER HAS BEEN, MAKE SURE YOU TAKE CAREOF EVERY SINGLE EMPLOYEE, AND WE'RE DOING THAT. >> GAVITO: WELL, I APPRECIATE THAT. BECAUSE, OFTENTIMES WITH THESE TRANSITIONS, YOU KNOW, SOMETIMES YOU DO SEE EXECUTIVE READERSHIP MAKING CHANGES, BUT I'M ALWAYS INTERESTED IN HOW IT TRUCK TRICKLES DOWN TO THE AVERAGE EMPLOYEE. FIVE TIMES ON AVERAGE IS GREAT, SO THANK YOU FOR TAKING CARE OF THEM LIKE YOU SAID YOU ARE. I ALSO HAD ONE QUICK QUESTION. COUNCILWOMAN CABELLO HAVRDA SAID -- ASKED A QUESTION, I WANT TO PROBE A LITTLE BIT FURTHER, ABOUT THE INCREASE IN PARKING FEES FOR CUSTOMERS. SO ARE WE EXPECTING TO
SEE ONE OR NOT? >> SAENZ: WELL, WE'RE -- THERE'S ALWAYS MARKET SHARE THAT'S CHANGING. I DARE NOT TELL YOU IT'S NOT EVER GOING TO CHANGE. I WILL TELL YOU THE TRANSITION THAT WE'RE DOING RIGHT NOW, WE'RE NOT CHANGING ANY PARKING RATES, AND WE'RE BASICALLY FORCING THE CONTRACTOR RIGHT NOW SAYING, COME IN, LET'S GO THROUGH THE TRANSITION, GIVE US SOME OF YOUR IDEAS, WE'LL TAKE THOSE INTO CONSIDERATION. EVERYTHING'S GOING TO STAY AS IT IS RIGHT NOW.
>> GAVITO: OKAY. THAT'S WHAT I WANTED TO CLARIFY.
THANKS SO MUCH. THAT'S ALL MY QUESTIONS. THANKS, MAYOR.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ALDARETE GAVITO.
BEFORE I TURN IT OVER TO COUNCILWOMAN KAUR, I WANT TO RECOGNIZE AND ACKNOWLEDGE THE PRESENCE OF MAYOR GERARD HUDSBETH, A GREAT PARTNER AND PI PEER, HE'S IN HIS TRADEMARK COWBOY HAT IN THE BACK, AND WE ARE LOOKING FORWARD TO THE NEXT NORTH TEXAS/UTSA MEETING ON THE FOOB
FIELD, MAYOR GERARD. COUNCILWOMAN KAUR? >> KAUR: THANK YOU, MAYOR. WHEN I SAW THIS ON B SESSION, I GASPED FOR A SECOND BECAUSE THAT MEANS -- FRANKLY LOVE THE PARKING SYSTEM AT THE AIRPORT RIGHT NOW.
BECAUSE IT'S AFFORDABLE AND QUICK. AND SO I'M GOING TO DOUBLE DOWN ON THE QUESTION THAT COUNCILMEMBER ALDARETE GAVITO JUST ASKED. YOUR FINANCIALS ARE BASED ON MARKET RATES RIGHT NOW FOR 10 YEARS, BUT WE KNOW MARKET RATES AREN'T GOING TO CHANGE.
AND WHEN YOU GO TO ANY -- A LOT OF OTHER BIG-CITY AIRPORTS, THEIR AIRPORT PARKING IS RIDICULOUS. IT IS UPWARDS OF 20 TO $30 PER NIGHT TO PARK ON AIRPORT. WHAT GUARANTEE DO WE HAVE THAT THEY DON'T SAY NEXT
YEAR, ALL OF A SUDDEN, OUR RATES ARE DOUBLE. >> WALSH: THE PARKING CONTRACTOR DOES NOT CONTROL THAT. THAT'S NOT UP TO THEM.
THAT'S UP TO THE CITY. >> KAUR: SO WE'RE STILL GOING TO BE ABLE TO
MANAGE. >> WALSH: THAT IS STILL A CITY RESPONSIBILITY.
AND THE PRO FORMA ASSUME NO CHANGE IN RATES, SO THAT WE HAD AN APPLES TO APPLES COMPARISON. BECAUSE IF WE WEREN'T CLEAR IN THE SOLICITATION, THEN WE WOULD HAVE GOTTEN PROBABLY PRO FORMAS THAT MADE CERTAIN ASSUMPTIONS THAT INCREASED POTENTIAL REVENUE, AND THAT'S WHY WE SAID, ASSUME THE SAME RATES CONTINUE FOR THE 10-YEAR PERIOD.
BUT WE CONTROL THAT, NOT THE CONTRACTOR. >> KAUR: SO WHO DETERMINES THE FLEXIBLE COSTS WHEN -- THE PROGRAM THAT YOU TALKED ABOUT DURING LOW -- SHARE WITH YOU AS WE OVERSEE IT, WE ARE CONSTANTLY LOOKING AT MARKET RESEARCH DATA THAT TELLS US WHERE OTHERS ARE AT AND WHAT WE'RE DOING, AND SO THAT'S A MATCH. OBVIOUSLY, WITH THE PARKING OPERATOR COMING
IN, THEY'LL COME IN AND SHARE THAT AS WELL. >> KAUR: BUT IS THE DISCOUNT LIKE AN ALGORITHM THAT YOU GUYS ARE BASICALLY USING?
>> SAENZ: CORRECT. >> KAUR: GOT IT. >> COYLE: AND THE KEY IS, IT WOULD BE A DISCOUNT TO DRIVE MORE CONVERSIONS, MORE USAGE.
WHAT THE CITY MAINTAINS IS THE MAXIMUM RATES WITHIN THE VARIOUS
SHORT-TERM, LONG-TERM AND ECONOMY PARKING. >> KAUR: AND THE TECH APP PROVIDER DOES THE DISCOUNT BASED ON SOME KIND OF ALGORITHM ON
USAGE. >> COYLE: RIGHT. SOME OF THE COMMENTS THEY GOT FROM THE GROUP, THEY HAD THE MOST SOPHISTICATED YIELD MANAGEMENT STRATEGIES, THEY'D PROVEN IT IN OTHER AIRPORTS AND THEY REALLY KNEW HOW TO USE DYNAMIC PRICING TO DRIVE REVENUE.
>> KAUR: IS SP THE ONE THAT OWNS THE TECH, OR ARE THEY USING A
CONTRACTED COMPANY? >> COYLE: SP DOES, CORRECT.
>> KAUR: SO THEY HAVE DIRECT OVERSIGHT. >> COYLE: AND IT'S ALL DONE IN CONCERT WITH THE AIRPORT. WE'RE CONTINUING TO MANAGE THE CONTRACT, WE DON'T TURN OVER THE REIGNS ENTIRELY, BUT IT
IS THEIR TECHNOLOGY. >> KAUR: OKAY. BUT THEIR MAX PRICE IS
STILL GOING TO ALWAYS BE SET BY US. >> WALSH: YEAH, THEY'RE NOT THE UBER DYNAMIC PRICES, WHICH ARE GENERALLY HIGHER.
>> KAUR: LIKE TIMES 3. >> WALSH: YEAH, THE DYNAMIC PRICING IS
DESIGNED TO SEE -- >> KAUR: YOU GUYS KNOW EXACTLY WHAT I'M TALKING
ABOUT. >> WALSH: THE PARKING CUSTOMERS LIKE PREVIOUS
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COUNCILWOMAN HAVRDA TO SEE A DYNAMIC PRICING DOWN TO GO FILL ONE OFOUR SPOTS RATHER THAN ACROSS 410. >> KAUR: 100%.
OKAY. COOL. YOU MENTIONED THAT VALET'S A REALLY BIG OPPORTUNITY HERE. IS THE VALET REVENUE THAT WE'RE GOING TO INCREASE IN GENERATION, IS THAT GOING TOWARDS THE OVERALL ZERO TO 3% KIND OF INCREMENT INCREASE OR DO WE GET A LARGER PERCENT
OF THE VALET GROWTH. >> SAENZ: WE GET A LARGER GREEVMENT BASED ON THE AGREEMENT THAT WE HAVE TODAY. WE'LL GET A LARGER
PERCENTAGE, COUNCILWOMAN. >> KAUR: OKAY.
GREAT. AND SO THAT 282 NUMBER THAT WAS DECIDED FOR THE MANAGEMENT AGREEMENT, OBVIOUSLY IT'S LOWER THAN WHAT OUR OPERATIONAL COSTS ARE RIGHT NOW. HOW DID Y'ALL COME TO THAT NUMBER?
>> ELLIOTT: WELL, THE $282 IS WHAT THEY PROPOSE AS THEIR MANAGEMENT FEE.
IN ADDITION TO THE MANAGEMENT FEE, WE'LL BE REIMBURSING THEM THEIR EXPENSES ON A MONTHLY BASES TO OPERATE THE GARAGES. SO THAT MANAGEMENT FEE IS, IN ESSENCE, THEIR PROFIT. $282,000, BUT TO RUN THE GARAGE, IF THEY SPEND PERSONNEL COSTS, OPERATING COSTS, WE WILL
REIMBURSE THOSE TO THE OPERATOR. >> KAUR: GOT IT.
SO THE REVENUE MODEL, WE'RE STILL GETTING THE REVENUE GENERATED BY THE PARKING, WE'RE JUST ESSENTIALLY PAYING OUT TO THIS --
FEE, THE OPERATING COST AND THEN THE INCENTIVE. >> KAUR: GREAT.
AND LAST LAY, SINCE THEY'RE JUST DOING THE OPERATION THEY CAN'T DO ANY INFRASTRUCTURE IMPROVEMENT LIKE ADDING ELECTRIC VEHICLE CHARGING
TO THE LOT IN THE AIRPORT. >> SAENZ: I THINK THOSE ARE OPPORTUNITIES THEY CAN PRESENT FOR US TO CONSIDER AS IT RELATES TO THE OVERALL INFRASTRUCTURE, THE INTEGRITY OF THE OVERALL, YOU KNOW, CAPITAL SIDE OF WHAT WE DO. IT STILL RESIDES WITH THE
CITY. >> KAUR: I'D LOVE TO SEE THAT, BECAUSE THAT'S A REALLY BIG GAP THAT WE DON'T HAVE IN ANY AIRPORT PARKING, EVEN ANY OF OUR THIRD-PARTY PROVIDERS DON'T OFFER ELECTRIC VEHICLE CHARGING SO I THINK IT WOULD BE REALLY GREAT TO BE ABLE TO OFFER THAT, MAYBE EVEN PUT IT IN DIFFERENT LEVELS, LIKE OFFER SOME AT THE ECONOMY LOTS, AT THE SHORT-TERM
AND AT THE LONG-TERM. >> SAENZ: WE COULD NOT AGREE WITH YOU MORE.
IT'S SOMETHING WE'RE TAKING INTO SERIOUS CONSIDERATION WITH THE NEW GROUND TRANSPORTATION CENTER FOR THE NEW TERMINAL COMPLEX AND ADDITIONAL PARKING THAT WE'RE GOING TO NEED AS WE GROW.
>> COYLE: AND I'LL JUST ADD BECAUSE I'M WHISPERING WITH RYAN, WE
DO HAVE CHARGERS IN THE LONG-TERM. >> KAUR: WHERE ARE THEY.
>> COYLE: SHORT AND -- I'LL LET YOU GUYS -- >>
>> KAUR: I DIDN'T KNOW THAT WE HAD CHARGERS THERE.
>> LEVEL ZERO AND LEVEL 1 HAVE CHARGING STATIONS.
AND THEN IS THERE SECURITY CONTRACT MANAGED IN-HOUSE?
>> SAENZ: IT IS. BUT THEY WILL BE REQUIRED TO HAVE, AS I MENTIONED
EARLIER, OFFICERS PATROLLING 24/7, 365. >> KAUR: OKAY.
THOSE ARE ALL MY QUESTIONS. THANK YOU.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER KAUR. COUNCILMEMBER COURAGE?
>> COURAGE: THANK YOU, MAYOR. JESUS, CAN YOU EXPLAIN ABOUT THE GROUND LOADING AS TO HOW THAT IS GOING TO ACCOMMODATE PEOPLE WHO WITH LIMITED MOBILITY AND DISABILITIES, BECAUSE THEY'RE GOING TO BE AWAY FROM THE NORMAL LOADING SYSTEMS THAT WE USE, RIGHT?
>> SAENZ: JUST FOR CLARIFICATION, COUNCILMAN, ARE YOU REFERENCING IN THE SHORT-TERM GARAGE OR JUST OVERALL.
>> COURAGE: NO, NOT IN THE GARAGE. IN THE GROUND LOADING
FACILITIES. AIRPORTS. >> SAENZ: YES, SIR.
>> COURAGE: HOW ARE WE GOING TO ACCOMMODATE PEOPLE WITH
DISABILITIES. >> SAENZ: WE HAVE LIFTS THAT WILL ACCOMMODATE THAT THAT WILL ASSIST EVERYONE WITH ACCESSIBILITY.
>> COURAGE: SO THERE WILL BE A LIFT ACCESS INTO THE PLANE SEPARATE FROM
WALKING UP THE STAIRS. >> SAENZ: AND I'LL REMIND EVERYBODY AS WE GO THROUGH THAT OP OPERATION, WE WILL OPEN BOTH DOORS FOR A MORE EXPEDITION LOADING AND UNLOADING OF AN AIRCRAFT THAT WILL ENCOMPASS A
HUMAN LIFT SYSTEM AS WELL. >> COURAGE: OKAY.
THANK YOU. >> SAENZ: YEP. >> COURAGE: GETTING BACK TO THE POTENTIAL CONTRACT, WHAT -- WHAT ARE CURRENT AVERAGE OPERATING COSTS FOR THE AIRPORT, KIND OF LIKE MONTHLY?
>> SAENZ: TODAY, IT'S 10 MILLION. >> COURAGE: 10 MILLION?
NUMBERS. >> COURAGE: YEAH. >> GOOD AFTERNOON, COUNCIL. IT'S 7 MILLION IS OUR OPERATING BUDGET RIGHT
NOW FOR OUR PARKING DIVISION. >> COURAGE: AND IS THAT
MONTHLY? >> NO, THAT'S ANNUALLY. >> COURAGE: ANNUALLY.
OKAY. SO MONTHLY, HOW MUCH IS IT?
PAYING ALL OF THE EMPLOYEES THAT WORK THERE AND EVERYTHING.
>> THAT'S ALL OUR OPERATING EXPENSES. >> COURAGE: OKAY.
BECAUSE I'M TRYING TO FIGURE -- WE'RE SAYING THAT WE ANTICIPATE CHANGING WHAT WE GET FROM THE AIRPORT OPERATING AND MAINTENANCE FUND.
OH, OKAY. I GUESS THE OVERALL AIRPORT OPERATING AND
[01:00:03]
MAINTENANCE FUND IS $309 MILLION. BUT THE PARKING ISN'T309 MILLION, RIGHT? >> YOU'RE REFERENCING THE REVENUES.
>> COURAGE: RIGHT. >> 309 ARE THE REVENUES THAT WE RECEIVE, AND THE FORECAST THAT WE'VE RECEIVED ON THE PRO FORMAS, YOU KNOW, TAKE US
TO CLOSE TO 379. >> COURAGE: NO, I UNDERSTAND THAT.
BUT IS 309 MILLION WHAT WE TAKE IN JUST FROM PARKING?
>> THAT'S CORRECT. >> COURAGE: OKAY. SO HOW MANY IT ONLY COSTS
US $7 MILLION A MONTH TO OPERATE IT. >> WALSH: THAT'S OVER 10
YEARS, COUNCILMAN. >> COURAGE: RIGHT. THAT'S $30 MILLION A YEAR, IT ONLY COSTS US 7 MILLION TO OPERATE, SO THAT MEANS WE'RE MAKING
ALMOST $24 MILLION A YEAR. >> THAT'S CORRECT.
>> COURAGE: AND SO THEN WE'RE SAYING IF THAT 23 OR 24 MILLION INCREASES BY 4 MILLION, THEN THEY WOULD GET A 2.5% REVENUE SHARE ON THAT INCREASE OF
4 MILLION? >> SAENZ: THAT'S CORRECT.
>> COURAGE: WHICH IS $100,000, NOT VERY MUCH. >> THAT'S CORRECT.
>> COURAGE: BUT THAT WOULD BE MONTHLY, RIGHT? SO IF WE HAD -- WELL, NO,
I GUESS YOU WOULDN'T HAVE 4 MILLION A MONTH. >> NO.
>> COURAGE: SO ANNUALLY. I UNDERSTAND. YOU DON'T HAVE TO COME UP, TROY. [LAUGHTER] NEXT, WHAT ABOUT -- OR DOES THIS CONTRACT ALSO OVERSEE ALL OF THE SURFACE PARKING AS WELL
AS THE AIRPORT BUILDING. >> IT DOES, COUNCILMEMBER, A TOTAL OF FIVE LOTS. THE TWO GARAGE LOTS WHICH IS THE SHORT-TERM GARAGE,
THE LONG-TERM GARAGE AND THE THREE SURFACE LOTS. >> COURAGE: SEE, THAT BRINGS UP A QUESTION. BECAUSE WHEN YOU EXPLAINED HOW THEY WERE GOING TO PROVIDE SECURITY, YOU SAID THEY WERE GOING TO HAVE TWO ROVING SECURITIES FOR FIVE LOTS ALL DAY LONG? THAT DOESN'T SEEM LIKE VERY GOOD SECURITY IN MY OPINION. YOU KNOW, THE GARAGE BUILDING HAS MULTIPLE FLOORS. AND THEN ALL THE OTHER SURFACE LOTS ARE PRETTY SPREAD OUT. I JUST WONDER HOW ARE WE GOING TO MONITOR SECURITY BECAUSE WE'VE ALREADY HEARD THAT THERE HAVE BEEN INCIDENTS AT AIRPORT PARKING, THINGS LIKE THAT.
DO WE HAVE THE FLEXIBILITY TO REQUIRE MORE IF WE NEED TO?
SAENZ WE >> SAENZ: WE DO A PRETTY GOOD JOB OF IT.
I DARE NOT TELL YOU THAT WE'RE GOING TO BE PERFECT, BECAUSE WE'RE NOT. I FEEL THE TWO IS SUBSTANTIAL, AND THAT WILL BE SUPPLEMENTED BY THE EXISTING AIRPORT POLICE THAT ARE ROAMING THE AIRPORT AREAS AS WELL, ALONG WITH OUR EXISTING SECURITY PERSONNEL THAT ARE OVERSEEING OUR LAND OPERATIONS THAT ARE GOING TO BE IN AND AROUND THE ENTIRE AREA WORKING TOGETHER WITH THE PARKING
CONTRACTOR. >> COURAGE: SO THERE ARE PERSONNEL AT THOSE
LOCATIONS, TOO, THAT KEEP AN EYE ON THINGS, RIGHT? >> SAENZ: CORRECT.
AND THEN, YOU KNOW, I TELL EVERYBODY, DON'T DO ANYBODY AT THE AIRPORT THAT YOU DON'T WANT ANYBODY TO SEE, BECAUSE THERE'S CAMERAS EVERYWHERE. AND THAT INCLUDES THE PARKING GARAGE.
>> COURAGE: OKAY. >> SAENZ: SO WE HAVE THAT AVAILABLE TO US AS WELL,
AND THAT'S UNDER 24/7. >> COURAGE: WILL THIS CONTRACT ALSO INCORPORATE ANY NEW FUTURE PARKING FACILITIES WE'RE BUILDING?
>> SAENZ: IT HAS THE ABILITY TO INCORPORATE THAT AS WE EXPAND.
>> COURAGE: SO THERE WOULDN'T BE ANY NEED FOR RENEGOTIATING OR ANYTHING, WE JUST HAVE A CLAUSE IN THERE THAT SAYS WE CAN WORK ON THAT.
>> SAENZ: CORRECT. >> COURAGE: OKAY. NOW, THE POTENTIAL ADDITIONAL REVENUE, 2% -- 2.5%, 5% OR WHATEVER, DO WE HAVE A FORECAST -- I GUESS THE FORECAST IS, IT'S GOING TO BRING IN $56 MILLION -- EXCUSE ME,
67 MILLION OVER 10 YEARS. >> SAENZ: CORRECT.
>> COURAGE: AND THAT WOULD BE REVENUE TO US AFTER ALL THE EXPENSES, AFTER THE REVENUE SHARING WE PROJECT THEY MAY BE GETTING, TOO, RIGHT?
>> SAENZ: THAT IS CORRECT, SIR? >> COURAGE: OKAY.
WELL, I THINK THAT'S ALL MY QUESTIONS. THANK YOU.
>> SAENZ: YES, SIR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER
COURAGE. COUNCILMEMBER >> WHYTE: JUST BRIEFLY, I THINK WE'VE COVERED A LOT OF THIS. ON SLIDE 12 WHERE WE TALK ABOUT THE DEMONSTRATED ABILITY TO DRIVE REVENUE OF THIS NEW COMPANY, WE LOOKED AT WHAT THE THEY DID IN OTHER CITIES AND THEIR TRACK RECORD IS GOOD ON SIGNIFICANTLY INCREASING OTHER
AIRPORTS' REVENUES, RIGHT? >> AIRPORTS DO THESE GUYS OPERATE IN AROUND THE COUNTRY, DO WE KNOW?
>> SAENZ: 160. >> WHYTE: ALL RIGHT. GREAT.
WITH RESPECT TO MAXIMUM DAILY PARKING RATES THAT I THINK COUNCILWOMAN KAUR BROUGHT UP, DO WE KNOW NOW OR ARE WE ANTICIPATING RAISING THESE OR WE WERE NOT SURE YET?
>> SAENZ: NO. AS WE TRANSITION, PROVIDING YOU ALL'S APPROVAL AS WE MOVE INTO
[01:05:02]
THIS, WE REALLY WANT TO STABILIZE FOR RIGHT NOW AND START TO LOOK AT HOW OTHER OPPORTUNITIES WITHIN THE NEW RESERVATION SYSTEMS OR OTHER NEW TECHNOLOGIES, HOW CAN THAT HELP US AS WE EXIST TODAY. SO WE KIND OF WANT TO REMAIN STAGNANT FOR A PERIOD.I CAN'T TELL YOU EXACTLY HOW MUCH BUT WE WILL BE MONITORING THAT EVERY MONTH, EVERY WEEK AS WE GO FORWARD. OUR EMPHASIS IS NOT TO GO RAISE RATES, ONE.
SECONDLY, AS I MENTIONED EARLIER, IT'S ABOUT THE MARKET RESEARCH AND THE DATA THAT'S OUT THERE. WE WANT TO CONTINUE TO REMAIN COMPETITIVE.
BECAUSE AS WE ALL KNOW, PEOPLE MAKE DECISIONS BASED ON PRICE. >> WHYTE: FOR SURE.
ALL RIGHT. WELL, CONGRATULATIONS TO YOU AND THE WHOLE TEAM.
I THINK THIS IS A NO-BRAINER. MAKES A BUNCH OF SENSE TO ME AND IT'S GREAT WORK.
I JUST WANT TO END AND ECHO COUNCILWOMAN ALDERETE GAVITO'S COMMENTS AS WELL AS COUNCILWOMAN ROCHA GARCIA. I'M GLAD WE'VE PAID ATTENTION TODAY TO OUR EMPLOYEES AND WANTING TO TAKE CARE OF THE EMPLOYEES OUT THERE BECAUSE THE AIRPORT IS OBVIOUSLY AN EXTREMELY IMPORTANT PART OF OUR SAN ANTONIO ECOSYSTEM. IT'S HOW PEOPLE FLY OUT FOR BUSINESS. IT'S HOW PEOPLE COME INTO THE CITY FOR BUSINESS AND PLEASURE AS WELL, SPEND MONEY HERE AND HELP OUR ECONOMY. BUT IT'S ALSO A PLACE, BOTH WITH INSIDE THE TERMINAL AS WELL AS OUTSIDE IN THE AIRFIELD WHERE WE HAVE VENDORS AND OTHER PARTNERS WE WORK WITH THAT EMPLOY THOUSANDS OF SAN ANTONIANS. AND THESE PAYCHECKS THAT THEY RECEIVE, BASED ON THEIR WORK OUT THERE, IT'S HOW THEY SUPPORT THEIR FAMILIES.
AND SO, YOU KNOW, I THINK IT'S ALWAYS IMPORTANT TO KEEP THAT IN MIND WHENEVER WE'RE LOOKING AT CHANGES OR ANYTHING THAT WE'RE DOING OUT AT THE AIRPORT. THANKS, MAYOR.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE. COUNCILMEMBER VIAGRAN.
>> VIAGRAN: OH, HELLO. >> MAYOR NIRENBERG: WE GOT YOU.
>> VIAGRAN: GREAT. JESUS, IT'S GOOD TO SEE YOU AGAIN.
WE GOT TO SEE YOU -- I GOT TO SEE YOU THIS MORNING AT SAN ANTONIO'S OTHER AIRPORT, STINSON. THE MAYOR WAS THERE, ADRIANA WHERE WE SIGNED THE MOU.
SO I'M EXCITED ABOUT THAT. I DO HAVE QUESTIONS REGARDING SECURITY AND MAKING SURE THAT'S COORDINATED. I KNOW WE HAVE THE CAMERAS BUT I DO WANT TO MAKE SURE THAT THEY'RE WORKING WITH THE POLICE. SO I LOOK FORWARD TO SEEING PUBLIC SAFETY LOOK AT THAT AND KIND OF EXAMINE THAT. AND THE OTHER THING IS AS WE GET TO THE POINT WHERE WE LOOK FOR EXTENSIONS TO THIS CONTRACT, I THINK WE NEED TO LOOK AT POSSIBLY DO WE NEED MORE EMPLOYEES, WHAT NEW TECHNOLOGIES DO WE NEED. BECAUSE TECHNOLOGY CHANGES A LOT IN TEN YEARS. SO I APPRECIATE THOSE. THOSE ARE TWO THINGS.
I JUST WANT TO LET EVERYBODY KNOW I WAS A CITY EMPLOYEE THAT WAS MOVED ON WITH A COMPANY THAT CAME WHEN THEY PRIVATIZED, AND THAT WAS VISIT SAN ANTONIO. SO I KNOW THAT ERIK AND THE TEAM ARE GOING TO WORK REALLY HARD TO MAKE SURE THAT WE FIND PLACES FOR THESE EMPLOYEES.
AS Y'ALL KNOW, MY DAD WAS AN EMPLOYEE FOR MANY, MANY YEARS AD WE SEE THESE PROCESSES WHERE POSITIONS GET ELIMINATED BUT EMPLOYEES STAY. I'M CONFIDENT THAT'S GOING TO HAPPEN AND I LOOK FORWARD TO THE OPPORTUNITIES AND ADVOCATING FOR THEM.
CHANGE IS GOOD AND IF YOU TAKE THAT RETIREMENT, WE WANT YOU TO MOVE ON AND ENJOY.
BUT SAN ANTONIO IS A WONDERFUL PLACE TO WORK ALSO. THANK YOU.
>> SAENZ: THANK YOU, COUNCILWOMAN. >> MAYOR NIRENBERG: THANK YOU,
COUNCILMEMBER VIAGRAN. COUNCICOUNCILMEMBER PELAEZ. >> PELAEZ: THANKS, JESUS.
I TRAVEL MORE THAN I WANT TO SOME DAYS AND I CAN TELL YOU THAT EVERY SINGLE TIME I'VE GONE THROUGH SAT, WHEN I ENCOUNTER ANY OF COSA'S EMPLOYEES THERE, IT'S JUST A PLEASURE.
YOU KNOW, IT'S EVIDENT THAT THEY UNDERSTAND THE ASSIGNMENT. THEIR JOB IS TO GET PEOPLE IN AND OUT AND TO HELP MAKE THAT JOURNEY LESS DIFFICULT AND IT'S ALSO EVIDENT THAT THEY'RE PROUD OF THEIR AIRPORT. I WISH I COULD SAY THE SAME FOR THE EMPLOYEES OF OTHER COMPANIES THAT HAPPEN TO WORK THERE. I'VE SEEN AIRLINE EMPLOYEES MISTREAT PEOPLE AND IT BREAKS MY HEART WHEN THEY MISTREAT THE MIGRANTS THERE IN THE PAST AND I KNOW THERE'S ONLY SO MUCH THAT YOU CONTROL BUT THAT WHAT YOU CONTROL IS WORKING REALLY, REALLY WELL. I KNOW IT'S NOT EASY TO GET PEOPLE TO SMILE AND BE KIND AND
[01:10:02]
BE HELPFUL, ESPECIALLY WHEN ALL DAY LONG THEY ENCOUNTER PEOPLE WHO ARE STRESSED OUT.AND YOUR EMPLOYEES ARE DOING THAT MASTERFULLY. PLEASE PASS ALONG MY THANKS AND MY ADMIRATION. THE OTHER THING IS I'M LISTENING TO EVERYTHING YOU'RE TALKING ABOUT AND IT SOUNDS TO ME LIKE, YOU KNOW, THIS IS ALL REALLY ABOUT TECHNOLOGY AND THE POST-COVID PARKING HAS CHANGED IN THAT THE CUSTOMERS ARE EXPECTING A LITTLE BIT MORE CONTROL OVER THE PARKING THEMSELVES. AND SO THEY DO THAT BY EMBRACING THINGS LIKE, YOU KNOW, AUTOMATIY THROUGH THEIR APP. THE ABILITY TO RESERVE A SPACE.
I DON'T REMEMBER HEARING ANYTHING ABOUT AUTOMATIC VEHICLE IDENTIFICATION, PEOPLE DRIVING IN AND OUT. IS THAT SOMETHING YOU'RE LOOKING AT DOING?
>> SAENZ: IT WILL BE SOMETHING CONSIDERED AS WELL. >> PELAEZ: AND THOSE CUSTOMER
LOYALTY PROGRAMS. >> SAENZ: THAT WILL BE EXPANDED AS WELL.
>> PELAEZ: OKAY. GOOD. AND THEN I IMAGINE THAT THE EXPANSION WILL INCLUDE THE PARKING GUIDANCE SYSTEMS SO PEOPLE CAN ACTUALLY KNOW WHERE
THEY ARE AND WHERE THEY'RE GOING. >> SAENZ: IT WILL.
>> PELAEZ: AND SO ALL OF THIS, TO ME, SEEMS LIKE ADDED CONVENIENCE FOR THE CUSTOMER BUT ALSO IT'S SORT OF A PRELUDE TO YOU GETTING THIS YIELD MANAGEMENT THAT YOU KEEP TALKING ABOUT, RIGHT? AND TO YOU GETTING INCREASES IN REVENUE BUT CREATING FOR YOU GUYS ADDITIONAL OPPORTUNITIES TO INCREASE EXIT A THROUGHPUT. IS THAT THE WORD? GETTING PEOPLE OUT FASTER DURING PEAK TIMES. AND I THINK ALL THAT'S GREAT, RIGHT? SO ONE OF THE ISSUES THAT I'VE GOT IS, AGAIN, ALONG WITH MY COLLEAGUES' CONCERNS REGARDING ELECTRIC VEHICLES, MORE AND MORE OF THEM ARE PARKING.
MORE PEOPLE EXPECT TO FIND THOSE CHARGING -- THAT CHARGING EQUIPMENT.
I KNOW THAT IT'S VERY COSTLY TO INSTALL CHARGING EQUIPMENT AND YOU CAN'T DO IT FOR EVERY SINGLE SPACE AND I DON'T THINK WE'LL EVER BE ABLE TO CATCH UP WITH THE NUMBER OF VEHICLES PARKED THERE OVERNIGHT AND THE OWNERS WHO WANT TO HAVE THEIR VEHICLES CHARGED.
I DID COME ACROSS RECENTLY -- DURING SPRING BREAK MY KIDS AND I WENT OUT OF TOWN AND WE SAW PORTABLE EV EQUIPMENT BEING USED AT AIRPORTS. IF YOU PAY, THEY BRING OUT THE EQUIPMENT. THEY CHARGE YOUR CAR. IS THAT SOMETHING THAT YOU GUYS
HAVE TALKED ABOUT? >> SAENZ: COUNCILMEMBER, JUST TODAY WE SIGNED A MEMORANDUM OF UNDERSTANDING WITH THE DEPARTMENT OF ENERGY AS WE LOOK AT ALTERNATIVE ENERGIES THAT CAN BE UTILIZED FOR FAST CHARGING SYSTEMS, WHETHER THAT BE ON FLEET THAT IS BEING UTILIZED AT THE AIRPORT OR WHETHER THAT'S FLEET THAT'S PARKING AT THE AIRPORT.
SO WE CONTINUE TO LOOK AT DIFFERENT OPPORTUNITIES THAT EXIST.
AND TO YOUR POINT, IT'S GROWING. WE'RE TRYING TO KEEP UP WITH IT AS WELL.
ARE WE PERFECT TODAY? NO. AS WE TALK ABOUT INCORPORATION OF NEW TECHNOLOGIES, ELECTRICAL CHARGING SYSTEMS IS SOMETHING THAT WILL BE CONSIDERED.
AS THE PARKING OPERATOR COMES ON BOARD AND PROVIDES NEW SOLUTIONS AND SAYS HERE'S WHERE THE MAJORITY OF OUR PARKERS AND WHAT'S THE PARKER UTILIZATION RATE, ELECTRICAL VERSUS HYBRID AND WHERE ARE THE BEST PLACES TO PARK THE VEHICLES , ALL THAT WILL BE TAKEN INTO CONSIDERATION WITH DATA ANALYTICS IN ENSURING WE CONTINUE TO PROVIDE WHAT THE PASSENGER WANTS, AS YOU HAVE JUST STATED. THAT'S REALLY WHAT WE'RE FOCUSING ON IS MAKING CERTAIN WHEN PASSENGERS COME THEY KNOW THAT WE HAVE THE LEVEL OF SERVICE THAT THEY COME TO EXPECT
COMING IN TO OUR AIRPORT. >> PELAEZ: THERE'S STILL PEOPLE OUT THERE WHO WANT TO USE CASH AND I THINK THAT WILL ALWAYS BE THE CASE BUT MY UNDERSTANDING IS MORE AND MORE CITIES ARE TRYING TO GET THE HECK OUT OF THE CASH BUSINESS. IS THAT OUR GOAL HERE ALSO?
>> IT'S SOMETHING THAT WE'RE CONSIDERING. OBVIOUSLY THERE'S A NUMBER OF PAY ON FOOT STATIONS THAT CAN BE UTILIZED AS WELL. FROM OUR STANDPOINT, FROM A SAFETY AND A SECURITY STANDPOINT, A CASHLESS OPERATION IS REALLY OPTIMUM BECAUSE YOU TAKE AWAY THE OPPORTUNITY FOR THEFT, AS WE MOVE INTO CASHLESS OPTIONS.
BUT IT'S NOT TOTALLY GONE AND WE HAVE TO BE CONSIDERATE OF THAT AS WELL, BECAUSE SOME PEOPLE PREFER TO PAY BY CASH AND WE HAVE TO MAKE OURSELVES AVAILABLE TO THOSE PASSENGERS AS WELL.
>> PELAEZ: OKAY. THAT MAKES SENSE. IS THERE -- I DON'T KNOW IF
[01:15:03]
THERE IS DISCUSSIONS. IF THERE'S NOT, I WOULD LIKE TO HEAR WHETHER OR NOT THERE'S A WAY TO NOT JUST PROMOTE BRAND LOYALTY FOR SAT, BECAUSE THAT'S ALSO THE PURPOSE OF THESE APPS AND, YOU KNOW, THE DYNAMIC PRICING AND THAT IS ALL. BUT IT SEEMS TO ME THERE'S ALSO AN OPPORTUNITY TO HELP DIRECT PEOPLE TO CONCESSIONAIRES. IS THAT PART OF THE DISCUSSION?>> SAENZ: IT IS. THE PARKING OPERATOR IS A CONCESSION SO FROM OUR STANDPOINT, AS WE GO THROUGH THAT, WE MENTIONED IT BRIEFLY IN THE PRESENTATION BUT THERE ARE A NUMBER OF MARKETING STRATEGIES THAT CAN BE UTILIZED AS WE ALL WORK TOGETHER TO CREATE THE OPPORTUNITY FOR PEOPLE -- I'M NOT SPECIFIC BECAUSE I DON'T DRINK COFFEE -- BUT WHAT'S YOUR FAVORITE COFFEE BRAND AND HOW DO YOU UTILIZE THAT AS YOU COME IN AND HOW DO WE MAKE THAT AVAILABLE IF WE GET X PERCENTAGE OF DISCOUNT BECAUSE YOU USED THE PARKING AND YOU CAN GO OBTAIN A COFFEE AT A CERTAIN RATE. THOSE ARE ALL OUT THERE. WE'RE GOING TO CONSIDER THOSE AS WE MOVE FORWARD. THE NUMBERS WE'VE GIVEN YOU TODAY ARE JUST BASED ON THE SPECIFIC STRATEGIES AS IT RELATES TO THE UTILIZATION OF SPACE AND HOW WE BEST UTILIZE SPACES THAT ARE EMPTY TODAY BASED ON SOME OF THOSE MARKETING STRATEGIES.
>> PELAEZ: WELL, I'VE ALWAYS THOUGHT THAT THERE'S THREE PAIN POINTS AT THE AIRPORT.
ONE OF THEM IS PARKING. THE OTHER ONE IS THAT TSA LINE AND THEN THE THIRD ONE IS BAGGAGE CLAIM. ANYTHING WE CAN DO TO SMOOTH OUT THE WRINKLES FOR PASSENGER WITH A GOAL TOWARDS FRICTIONLESSNESS -- IS THAT A WORD? I JUST INVENTED A WORD, ANDY. I SUPPORT IT. I THINK YOU GUYS ARE DOING GREAT. THANKS SO MUCH. THOSE ARE MY COMMENTS, MAYOR.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER PELAEZ. >> MAYOR NIRENBERG: JESUS, I DIDN'T REALIZE YOU DIDN'T DRINK COFFEE. YOU HAVE DONE SUCH A GREAT JOB WITH THE AIRPORT, I CAN ONLY IMAGINE IF YOU DRANK COFFEE HOW MUCH BETTER THE JOB WOULD BE.
YOU HAVE DONE A GREAT JOB, THOUGH. I APOLOGIZE IF THIS IS ALREADY COVERED. JUST TWO QUICK QUESTIONS. I AM REALLY EXCITED ABOUT THE TECHNOLOGICAL COMPONENT OF THIS AND REALLY IMPROVING CONVENIENCE AND SHORTENING THE TIME PEOPLE ARE DRIVING AROUND LOOKING FOR A PARKING SPACE. ALL OF THAT WORK WILL PRODUCE THE DATA ANALYTICS OR BE AIDED BY DATA ANALYTICS. THAT MEANS THERE'S GOING TO BE DATA. WHO'S GOING TO HAVE ACCESS AND CONTROL OF THAT DATA? AND, YOU KNOW, I ASSUME WE'LL BE ABLE TO UTILIZE THE DATA AND OTHER ASPECTS TO MAKE OTHER
PARTS OF OUR AIRPORT SMARTER. >> SAENZ: THE SIMPLE ANSWER IS YES, SIR.
WE WILL. WE WANT TO CAPTURE THAT INFORMATION.
THE MORE WE CAN CAPTURE ABOUT WHAT WE CONSIDER PASSENGER PERSONAS ON THE PEOPLE UTILIZING THE AIRPORT AND HOW WE CAN CAPTURE SOME OF THAT DATA AND PROVIDE BETTER SERVICE TO THEM
IS WHAT IT'S ALL ABOUT FOR US. >> MAYOR NIRENBERG: OKAY. AND THEN A LOT OF THIS CONVERSATION HAS REINVOLVED AROUND PARKING RATES. AS I UNDERSTAND THE CITY STILL HAS CONTROL OVER MAXIMUM PARKING RATES. THAT'S LOUD AND CLEAR.
WHAT IS THE PROCESS FOR RAISING THE RATES GOING TO LOOK LIKE FOR CITY COUNCIL? IS THERE -- IS THAT GOING TO BE BROUGHT FORWARD TO THE CITY COUNCIL? IS THIS GOING TO BE A MATTER OF REPORTING BACK, PART OF THE BUSINESS STRATEGY? WHAT WILL THAT -- BECAUSE EVENTUALLY THE RATES WILL GO UP. WHAT'S THE PROCESS FOR THAT?
>> WALSH: JUST LIKE ANY OTHER RATE, IT WILL EITHER BE INCORPORATED WITHIN THE BUDGET.
IT CAN BE INCORPORATED WITHIN ORDINANCES THAT WE AUTHORIZE THOSE RATES BUT IT WILL FOLLOW THE NORMAL PROCESS AS ANY OTHER RATE. SOME OF THE RATES IN THE PAST HAVE BEEN DELEGATED -- IN THE PAST THERE HAVE BEEN ADJUSTMENTS MADE BUT THEN DELEGATED TO THE AIRPORT DIRECTOR TO MOVE ACCORDINGLY BELOW AND UP TO. SO JUST BECAUSE THE CITY HAS SET A RATE, WE DON'T AUTOMATICALLY GO TO IT. HISTORICALLY AT THE AIRPORT, WE HAVE GIVEN OURSELVES THE ABILITY TO LIVE WITHIN THAT BUBBLE AND ADJUST.
I WOULD ASSUME THAT WOULD CONTINUE AND WE HAVE MADE THOSE ASSUMPTIONS THAT THAT WOULD
CONTINUE IN THIS CONTRACT. >> MAYOR NIRENBERG: SO THE CONTRACTOR WOULD LIKELY RECOMMEND SOMETHING AND WE WOULD HAVE A DISCUSSION. THE COUNCIL WILL SEE IT BEFORE
IT GOES INTO EFFECT. >> WALSH: YEAH. LET ME BACK UP.
I'M NOT SURE YOU WERE HERE WHEN JESUS SAID THIS. PART OF THIS WAS WE WANT TO KEEP EVERYTHING THE SAME AS WE TRANSITION AND FIGURE OUT WHAT ARE WE DOING FROM A REVENUE STANDPOINT TO MAXIMIZE WHAT WE HAVE. BEFORE WE START PULLING ANY SORT OF OTHER LEVERS. THAT'S GOING TO BE THE NUMBER ONE ISSUE.
AND WE'LL GO THROUGH WHATEVER THAT NORMAL PROCESS IS ON RATE CONVERSATION.
I DON'T ANTICIPATE -- I'M NOT GOING TO LOOK AT JESUS BUT I DON'T ANTICIPATE WE'D BE HAVING
[01:20:03]
THAT CONVERSATION QUICKLY. >> MAYOR NIRENBERG: YEAH. BUT IN EIGHT YEARS FROM NOW, HIGHLY UNLIKELY THAT THE RATES WILL BE THE SAME AS THEY ARE TODAY AND THERE WILL BE A
PROCESS FOR THAT. >> SAENZ: JUST TO MAKE SURE WE ANSWER YOUR FIRST QUESTION.
WE CONTROL THE DATA. IT'S OURS. >> MAYOR NIRENBERG: YOUR INTENT IS TO UTILIZE AND MAXIMIZE THAT DATA AND WE HAVE BEEN HAVING THAT CONVERSATION TOO. OKAY. GREAT.
>> SAENZ: I THINK WE HAVE A CLARIFY QUESTION ON THE CAPITAL THAT MARK WANTED TO COME UP FROM LEGAL. JUST TO CLARIFY. FROM THE CAPITAL SIDE WE CONTROL EVERYTHING WE DO ON THE CAPITAL. THEY MAY COME WITH AN IDEA AND WE'LL LOOK AT THAT AS WE PROVIDE
THAT. >> OR WE CAN COME TO THEM WITH PROPOSALS IF WE WANT A CAPITAL PROJECT DONE. WE CAN GET RESPONSES ON THAT AND THEN IF IT'S WITHIN THE SCOPE OF THE CONTRACT OR WE CAN AMEND THAT SCOPE TO INCLUDE OTHER PROJECTS.
>> MAYOR NIRENBERG: ALL RIGHT. WELL, GREAT DISCUSSION, EVERYBODY.
THANK YOU, JESUS AND TEAM. WE LOOK FORWARD TO SEEING THAT COMING TO COUNCIL BEFOREE THE VOTE. I'LL TRANSITION TO OUR NEXT ITEM.
I'LL TURN IT OVER TO YOU, ERIK. >> WALSH: THANK YOU, MAYOR. OUR SECOND ITEM WILL BE BRIEFED BY ROBERT PUENTE FROM SAWS. IT'S AN UPDATE TO THE COUNCIL ON SAWS' IMPACT FEES, WHICH ARE CHARGES PAID BY DEVELOPERS TO HELP RECOVER THE CAPITAL COSTS ASSOCIATED WITH INFRASTRUCTURE AND FACILITY EXPANSIONS NECESSARY FOR THOSE DEVELOPMENTS.
IMPACT FEES ARE DEVELOPED IN ACCORDANCE WITH THE VERY STRUCTURED PROCESS AUDIO] NEEDS TO BE UPDATED EVERY FIVE YEARS AND THAT'S PART OF THE PROCESS THAT ROBERT IS GOING TO TALK ABOUT WITH YOU THIS AFTERNOON. PRELIMINARILY WE ARE PLANNING ON HAVING A PUBLIC HEARING AND COUNCIL CONSIDERATION OF THE UPDATE FEE ROBERT IS PRESENTING TO YOU NOW ON MAY 16. DO YOU HAVE ANY QUESTIONS ON AIRPORT PARKING, ROBERT?
>> PUENTE: NONE AT ALL. >> WALSH: THANK YOU FOR SITTING THROUGH THAT.
>> PUENTE: IT'S A GOOD OPPORTUNITY TO LEARN ABOUT WHAT'S GOING ON AT THE AIRPORT.
THANK YOU, MAYOR. THANK YOU, CITY COUNCIL FOR THE OPPORTUNITY TO TALK TO YOU ABOUT IMPACT FEES. WE'RE ASKING FOR AN ADJUSTMENT ON THOSE IMPACT FEES.
IMPACT FEES ARE FEES THAT ARE PAID BY A DEVELOPER. OUR CITY IS GROWING.
SAWS IS GROWING. OUR PHILOSOPHY AT SAWS IS THAT GROWTH PAYS FOR ITSELF.
YOUR RATEPAYERS WILL NOT BE PAYING FOR THESE FEES. WITH ME IS ANDREANA BEAMER, OUR CHIEF OPERATING OFFICER. SHE HAS BEEN ON THE JOB FOR ABOUT SIX MONTHS.
JUST LIKE CPS, SAWS IS ONE OF THE NATION'S LARGEST PUBLICLY-OWNED UTILITIES.
SHE IS THE FIRST HISPANIC FEMALE TO HEAD A UTILITY IN THE UNITED STATES OF THIS SIZE.
SO SHE'S GOING TO PRESENT TO YOU THESE IMPACT FEES. THANK YOU.
>> THANK YOU. SO GOOD AFTERNOON, MAYOR, COUNCIL, CITY MANAGER.
TODAY I'M HERE TO DISCUSS IMPACT FEES, SAWS' WAY OF HAVING A DEVELOPMENT PAY FOR ITSELF.
HOWEVER, BEFORE I GET INTO THIS DISCUSSION, I WANTED TO REMIND YOU ALL THAT SAWS IS A UTILITY THAT YOU CAN BE PROUD OF. WE ARE A LEADING UTILITY OF THE WORLD.
WE'VE ACTUALLY RECEIVED THIS DESIGNATION AND IT WAS EARNED BY VERY FEW UTILITIES AND WE ARE PROUD TO BE ONE OF THEM. SAWS EARNED THIS TITLE FOR VARIOUS REASONS.
AMONGST THEM ARE PARTNERSHIPS IN TECHNOLOGY, OUR INTERNATIONALLY-RECOGNIZED LEADERSHIP IN CONSERVATION, AS WELL AS OUR TECHNICAL INNOVATION FOR ITEMS SUCH AS THE LARGEST ROLLOUT OF OUR ELECTRONIC METERING SYSTEM THAT WE CALL CONNECT H2O.
DURING THE PANDEMIC SAN ANTONIO WAS DEEMED THE FASTEST-GROWING CITY IN THE COUNTRY.
LAST YEAR THE U.S. CENSUS BUREAU RANKED SAN ANTONIO AS THE NATION'S THIRD-LARGEST FASTEST-GROWING CITY. AS YOU DRIVE AROUND THE CITY YOU SEE THAT GROWTH EVERYWHERE IN EVERY SECTOR. AS THE CITY'S WATER UTILITY, SAWS MANAGES GROWTH BY FINANCING CAPITAL IMPROVEMENTS RELATED TO GROWTH THROUGH THE COLLECTION OF IMPACT FEES.
SO WHAT ARE IMPACT FEES? THEY'RE A ONE-TIME CHARGE PAID BY DEVELOPERS TO COVER THE CAPITAL COSTS NEEDED FOR INFRASTRUCTURE FOR GROWTH. WHY SHOULD WE CHARGE IMPACT FEES? IT COVERS THAT CAPITAL COST FOR THE GROWTH ANDES GROWTH PAYS FOR ITSELF AND IT PREVENTS EXISTING RATEPAYERS FROM SUBSIDIZING NEW CUSTOMERS.
THE CITY MANAGER MENTIONED EVERY FIVE YEARS WE HAVE TO UPDATE THIS.
THIS IS REQUIRED BY STATE LAW. IN ADDITION, THE IMPACT FEES AREN'T DEVELOPED BY SAWS, THEY'RE DEVELOPED BY THE CAPITAL IMPROVEMENT ADVISORY COMMITTEE, WHICH IS APPOINTED BY COUNCIL .
[01:25:06]
AND THERE ARE THREE MAIN TASKS THE CIAC HAS TO DO. THEY HAVE TO DEVELOPMENT THE LAND USE ASSUMPTION PLAN, THE CAPITAL IMPROVEMENT PLAN, AS WELL AS DETERMINE THE MAXIMUM IMPACT FEE. IT'S A REQUIREMENT THAT 40% OF THE MEMBERS MUST REPRESENT THE REAL ESTATE AND BUILDING INDUSTRY. OUR COMMITTEE ACTUALLY HAS 60% OF ITS MEMBERS REPRESENTING THE DEVELOPMENT INDUSTRY. SO WHAT WERE THE RESULTS OF THOSE THREE ITEMS? FIRST AND FOREMOST I WANTED TO TALK A LITTLE BIT ABOUT THE LAND USE ASSUMPTION PLAN. WE'RE LOOKING AT 2024 TO 2033. WE LOOK TO ALIGN WITH THE SA TOMORROW PLAN AS WELL AS SAWS' WATER MANAGEMENT PLAN THAT'S CURRENTLY UNDER DEVELOPMENT.WE LOOK AT THE TEN-YEAR PERIOD AND WHAT WE EXPECT GROWTH TO LOOK LIKE.
SO THOSE NUMBERS FOR THE WATER SIDE, IT'S 161,030 NEW WATER EDUS AND 148,129 NEW WASTEWATER EDUS. SO THAT'S THE EXPECTED GROWTH. THEN WE LOOK AT THE GROWTH INFRASTRUCTURE NEEDED. WE LOOK AT OUR MASTER PLAN AND WE TALK TO THE DEVELOPMENT COMMUNITY ABOUT WHAT'S COMING IN THE HORIZON. WE DETERMINE THERE'S $1.5 BILLION IN PROJECTS OVER THE NEXT TEN YEARS THAT HAVE TO BE CALCULATED WITHIN THE IMPACT FEE. WITH THOSE TWO ITEMS WE DETERMINE THE IMPACT FEE CALCULATION FOR WATER SUPPLY, WATER DELIVERY, AS WELL AS WASTEWATER.
SO WHAT ARE THE RESULTS? AS YOU KNOW SAN ANTONIO IS BUILT ON -- WE HAVE A HILL.
WE HAVE QUITE A GRADIENT SO THE FURTHER AWAY YOU ARE FROM OUR INFRASTRUCTURE, FROM OUR TREATMENT FACILITIES, THE MORE INFRASTRUCTURE, THE MORE ENERGY THAT'S REQUIRED.
SO THEREFORE THE HIGHER THE IMPACT FEE. SO AS WE LOOK AT ALL THE DIFFERENT SCENARIOS FOR IMPACT FEES, THE HIGHEST IS IN THE I-10 CORRIDOR ON THE NORTHWEST.
AND WE SEE THE LOWEST IMPACT FEE IS IN THE SOUTHEAST AREA ALONG HIGHWAY 16.
THAT AREA IS CLOSEST TO OUR WASTEWATER TREATMENT FACILITY AS WELL AS SOME OF OUR WATER TREATMENT FACILITIES. WHILE THE FEES ARE INCREASING ACROSS THE BOARD, THE DEVELOPMENT COMMUNITY HAS RECOGNIZED THIS IS CONSISTENT WITH THE BUILDING INDUSTRY RIGHT NOW. WE SEE LAND COSTS. WE SEE BUILDING COSTS.
WE SEE CONSTRUCTION COSTS. ALL SIGNIFICANTLY HIGHER THAN THEY WERE FIVE YEARS AGO.
SO THERE WAS UNANIMOUS SUPPORT FROM THE CIAC TO CHARGE THE MAXIMUM FEE.
HOW DOES SAN ANTONIO COMPARE TO OTHER CITIES? WE ARE ACTUALLY PROUD TO SAY WE HAVE SOME OF THE HIGHEST IMPACT FEES. AND WHY IS THAT? HIGH IMPACT FEES KEEP RATES DOWN. BY KEEPING OUR IMPACT FEES HIGH, AGAIN, WE'RE ABLE TO KEEP OUR RATES LOWER. WE SPECIFICALLY ADDED NEW BRAUNFELS AND PFLUGERVILLE ON TO THE SLIDE BECAUSE AS YOU CAN SEE THEY HAVE SOME OF THE HIGHEST IMPACT FEES IN THE COUNTRY. WE HAVE ALL HEARD ABOUT THIS INCREDIBLE GROWTH RATE BETWEEN HERE AND AUSTIN, JUST NORTH OF AUSTIN. THEIR IMPACT FEES ARE INDICATIVE OF THAT GROWTH. IF YOU LOOK AT OUR PROPOSED IMPACT FEE, WE ARE STILL NOT CLOSE TO WHAT THEY ARE LOOKING TO CHARGE. I'D LIKE TO ASSURE YOU THAT THE IMPACT FEE PROCESS HAS NOT BEEN DONE IN A VACUUM. EACH OF THE CIAC MEETINGS WERE PUBLICLY POSTED AND THE NOTES WERE PROMPTLY POSTED ON OUR WEBSITE.
WE PROVIDED REGULAR UPDATES TO THE REAL ESTATE COUNCIL OF SAN ANTONIO.
WE'RE CURRENTLY IN THE MIDST OF PRESENTING THE UPDATED FEES TO THE CHAMBERS.
IN ADDITION, WE WERE ABLE TO BRIEF EACH OF THE COUNCIL MEMBERS INDIVIDUALLY AHEAD OF COMING INTO THIS MEETING. SO AS I MENTIONED, WE BEGAN THIS TIMELINE LAST JULY.
THE REPORT WAS FINISHED IN FEBRUARY. THIS ITEM WENT TO THE SAWS BOARD IN MARCH. AND THE SAWS BOARD ACCEPTED THE UPDATED IMPACT FEE PROGRAM, INCLUDING THE LAND USE ASSUMPTION PLAN, THE CIP, MAXIMUM IMPACT FEES, AND MADE A RECOMMENDATION FOR CITY COUNCIL APPROVAL . SO ORDINANCE SETTING A PUBLIC HEARING IN ACCORDANCE WITH LOCAL GOVERNMENT CODE 395 ON MAY 16, 2024 . SAWS IS REQUESTING CITY COUNCIL ACTION ON IMPACT FEES ON MAY 16 AS WELL. SO OUR ASK IS TO ESTABLISH THIS PUBLIC HEARING AS WELL AS TO HAVE AN ITEM ON THE AGENDA NEXT WEEK TO POST THE IMPACT FEE IN ORDER TO BE ABLE TO MOVE FORWARD
[01:30:03]
WITH THAT MAY 16TH HEARING. THAT CONCLUDES MY PRESENTATION. I WOULD BE HAPPY TO TAKE ANYQUESTIONS. >> MAYOR NIRENBERG: GREAT. THANK YOU VERY MUCH FOR THE PRESENTATION, ANDREA. THIS DID GO THROUGH THE SAWS BOARD AND SO WE'RE HERE NOW AT THE NEXT STEPS FOR CITY COUNCIL. WE'LL GET ON WITH THE DISCUSSION.
WE'LL START WITH COUNCILMEMBER ALDERETE GAVITO. >> GAVITO: THANK YOU, MAYOR.
AND THANK YOU, ANDREA FOR THE PRESENTATION. IT WAS A GREAT ONE.
JUST A FEW QUICK QUESTIONS. DO Y'ALL HAVE ANY DATA SHOWING THE EFFECTIVE INCREASING THE
IMPACT FEES ON THE OVERALL COST OF HOUSING IN SAN ANTONIO? >> WE DO NOT.
THE COST IS PASSED ON TO THE INDIVIDUAL HOMEOWNER. BUT WHEN YOU CONSIDER THE COST INCREASES OF LAND, OF LABOR, OF MATERIALS, IT IS MINUSCULE IN COMPARISON.
THAT'S BASED ON ANECDOTAL CONVERSATIONS THAT WE HAVE HAD WITH THE REAL ESTATE DEVELOPMENT. BUT WE CAN CERTAINLY SEE IF THERE'S SOME HARD DATA.
>> GAVITO: YEAH, IT WOULD BE INTERESTING TO SEE THAT. I KNOW IT'S IN RELATION TO ALL THE LAND AND DEVELOPMENT BUT I WAS JUST CURIOUS TO SEE IF THERE WAS A CORRELATION THERE.
ALSO, TOO, THANK YOU SO MUCH FOR THE EXTENSIVE COMMUNITY OUTREACH THAT YOU ALL HAVE DONE AND THANK YOU FOR MEETING WITH US INDIVIDUALLY BEFORE. WHAT CONCERNS DID Y'ALL HEAR
FROM SOME OF THE FOLKS THAT Y'ALL REACH OUT TO? >> WE HAVE NOT HAD ANY CONCERNS.
ACROSS THE BOARD EVERYONE HAS BEEN SUPPORTIVE. IT'S BEEN AMAZING.
>> GAVITO: OKAY. WELL, I MEAN, MAYBE IT'S A SIGN THAT Y'ALL DID YOUR HOMEWORK VERY WELL. THANKS FOR THAT. YOU KNOW, I MEAN I WILL JUST SAY I DO GET A LITTLE NERVOUS WHEN YOU DON'T HEAR ANY CONCERNS. THAT'S USUALLY NOT HOW THINGS
WORK. >> EXACTLY. >> GAVITO: AND DO WE KNOW WHERE THE EXTRA MONEY SAWS WILL EARN FROM THE INCREASED IMPACT FEES, WHERE IT WILL BE DIRECTED
TO IN SAWS' OPERATIONS? >> I WILL DEFER THAT QUESTION TO DOUG EVANSON, OUR CHIEF
FINANCIAL OFFICER. >> AS ANDREA POINTED OUT, WE HAVE A LOT OF GROWTH PROJECTS.
WHAT WAS THE FIGURE ON YOUR SLIDE FOR GROWTH? $1.5 BILLION OF GROWTH PROJECTS OVER THE NEXT TEN YEARS. THAT'S EXACTLY WHERE THOSE DOLLARS WILL GO.
>> GAVITO: THAT'S GOOD TO KNOW. THANK YOU.
THAT'S ALL MY QUESTIONS. THANK YOU SO MUCH FOR Y'ALL'S WORK ON THIS.
LOOKING FORWARD TO IT. THANK YOU, MAYOR THANK YOU. >> MAYOR NIRENBERG: THANK YOU,
COUNCILMEMBER ALDERETE GAVITO. COUNCILMAN COURAGE. >> COURAGE: THANK YOU, MAYOR.
I HAVE A COUPLE OF QUESTIONS. ONE THAT COMES TO MIND IS YOU SAID THE MAKEUP OF THE COMMITTEE IS MADE UP OF 60% OF PEOPLE WHO ARE IN OR AROUND THE REAL ESTATE INDUSTRY BUILDING DEVELOPERS, REALTORS. BUT THE REQUIREMENT IS AT LEAST 40%.
IS THAT RIGHT? >> YES. >> COURAGE: ARE ALL OF THE
COMMITTEE MEMBERS SELECTED BY US AS COUNCIL MEMBERS? >> YES, SIR.
>> COURAGE: SO THERE AREN'T ANY OTHER OUTSIDE REPRESENTATIVES?
>> NO, SIR. >> COURAGE: ALL RIGHT. AND WHEN THEY CALCULATE THE RATES, I HEARD YOU USE THE WORD "MAXIMUM" THAT WAS DETERMINED. BUT THE RATES VARY BY DISTRICT,
RIGHT? >> NOT NECESSARILY BY DISTRICT. >> COURAGE: BUT I MEAN BY AREAS ON THE MAP THAT HAVE MORE EXPENSIVE WAYS OF PROVIDING THE SERVICE.
>> THAT ARE FURTHER AWAY FROM OUR WATER PRODUCTION AREAS OR FROM OUR WASTEWATER TREATMENT
PLANTS THAT REQUIRE MORE INFRASTRUCTURE. >> COURAGE: OKAY.
I KNOW A LOT OF TIMES WATER HAS TO BE PUMPED UPHILL, SO TO SPEAK, TO GET SOMEPLACE.
IT'S THOSE KINDS OF ADDITIONAL COSTS THAT GET PASSED ON TO BUILDING AND THOSE HIGHER-COST
AREAS. >> I SHOULD CLARIFY. THANK YOU FOR GIVING ME THE OPPORTUNITY. THE IMPACT FEES ARE ONLY APPLICABLE TO CAPITAL COSTS.
SO THOSE CAPITAL COSTS TO BUILD THAT INFRASTRUCTURE, TO BUILD THE PIPING, TO BUILD THE PUMPS,
TO BUILD THE STORAGE FACILITIES, THAT'S WHAT THESE FEES COVER. >> COURAGE: OKAY.
I JUST WANTED TO MAKE SURE I UNDERSTOOD THAT. THANK YOU VERY MUCH.
>> YES, SIR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER COURAGE.
COUNCILMEMBER ROCHA GARCIA. >> GARCIA: THANK YOU, MAYOR. THANK YOU FOR THE PRESENTATION AND CONGRATULATIONS ON YOUR WORK. IT SOUNDS LIKE YOU HAVE DONE A GREAT JOB SO FAR. I DO HAVE -- MY CONCERN WAS SIMILAR TO COUNCILWOMAN ALDERETE GAVITO. AS YOU KNOW I REPRESENT THE SOUTH SIDE OF SAN ANTONIO.
THERE'S A LOT OF GROWTH HAPPENING ON THE SOUTHSIDE. I WAS CONCERNED THAT MAYBE SOME OF THE SMALL DEVELOPERS MIGHT BE IMPACTED NEGATIVELY AND I'M TRYING TO FIGURE OUT TO WHAT EXTENT THEY WOULD HAVE TO INVEST SOME ADDITIONAL FUNDING. AND SO TO THAT, I WANTED TO ASK ON YOUR SLIDE THAT TALKED ABOUT COMMUNITY ENGAGEMENT, I DID NOT SEE THE SOUTH TEXAS BUSINESS
[01:35:02]
PARTNERSHIP REPRESENTED. AND SO I DON'T KNOW IF YOU ALL SPOKE WITH THE TEXAS BUSINESS PARTNERSHIP , WHICH IS FORMERLY THE SOUTH CHAMBER OF COMMERCE. DID YOU ALL SPEAK TO THEM?THAT'S WHERE THE GROWTH IS HAPPENING . >> WE HAVEN'T HAD A DIRECT CONVERSATION WITH THEM YET BUT WE WILL BE SURE TO MEET WITH THEM PRIOR TO MAY 16.
>> GARCIA: I DIDN'T REALIZE YOU HADN'T ALL MET WITH THEM. IF YOU ASKED ME TODAY I WASN'T FEEL COMFORTABLE MOVING FORWARD. MY APOLOGIES BECAUSE I KNOW Y'ALL MET WITH ME ONE-ON-ONE.
I DIDN'T ASK THAT QUESTION. I MADE THE ASSUMPTION THAT WHEN Y'ALL MET WITH CHAMBERS THEY WERE INCLUDED. MY APOLOGIES TO YOU. I DO HAVE A WHOLE LOT OF DEVELOPMENT THAT'S GOING ON IN THE AREA. COUNCILWOMAN VIAGRAN AND COUNCILWOMAN CASTILLO AND MYSELF WERE ON A PANEL LAST WEEK ABOUT GROWTH ON THE SOUTHSIDE AND MR. PUENTE WAS THERE AND WE'RE JUST VERY FOCUSED ON MAKING SURE THAT WE CONTINUE THAT, TO HELP WITH THE AFFORDABLE HOUSING CRUNCH. WE NEED MARKET RATE AND HOUSING.
I JUST WANTED TO MAKE SURE THAT WE'RE WORKING WITH THE DEVELOPERS BUILDING OUT THERE.
A LOT OF THEM MIGHT BE THE SMALLER COMPANIES AND SO I WANT TO MAKE SURE WE GET THEIR BUY-IN AS WELL. THAT'S MY ONLY COMMENT AND I APPRECIATE YOU VERY MUCH.
THANK YOU SO MUCH. >> I'LL ADD ONE THING TO THAT CONCERN.
WE WILL CONTINUE TO CONTRIBUTE $3 MILLION TO THE CITY EVERY YEAR FOR IMPACT FEE WAIVERS.
FOR ECONOMIC DEVELOPMENT, FOR AFFORDABLE HOUSING. THAT IS GOING TO CONTINUE AS
WELL. >> GARCIA: THANK YOU SO MUCH. THANK YOU, MAYOR.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ROCHA GARCIA. COUNCILMEMBER KAUR.
>> KAUR: THANK YOU, MAYOR. SOME OF MY QUESTIONS WERE KIND OF ON THE SAME LINE AS COUNCILWOMAN DR. ROCHA GARCIA'S. ON SLIDE 5, CAN YOU BREAK DOWN THE COMPOSITION OF THE REAL ESTATE BUILDING GROUP. WERE THERE ANY SMALL BUSINESSES THAT WERE REPRESENTED THERE.
>> I HAVE A SLIDE, IF WE CAN GO TO MY BACKUP SLIDE, BECAUSE I SHOWED THE MEMBERSHIP.
SLIDE 13. SO WE DID HAVE A MIX OF THE LARGER DEVELOPERS AS WELL AS SOME OF THE SMALLER, AS YOU CAN SEE ON THE MEMBERSHIP. AS WELL AS SOME ENVIRONMENTAL
INTERESTS AS WELL ON THE COMMITTEE. >> KAUR: DID YOU MEET WITH ANY OF THE OTHER CONTRACTORS' ASSOCIATIONS, LIKE THE HISPANIC CONTRACTORS ASSOCIATION OR THE
BLACK CONTRACTORS ASSOCIATION? >> I HAVEN'T MET WITH THE CONTRACTOR ASSOCIATIONS BECAUSE MOST OF THEM DON'T PAY IMPACT FEES. THAT GOES TO THE BUILDERS.
>> KAUR: OKAY. GREAT. I THINK THE LAST QUESTION WAS HOW CAN WE SUPPORT INCENTIVIZINS INCENTIVIZING DEVELOPMENT WHERE THERE ALREADY IS INFRASTRUCTURE THAT EXISTS? ESPECIALLY IN DISTRICT 1 WHERE WE KIND OF TALKED ABOUT THIS.
IS THERE WAYS THAT YOU GUYS ARE GOING TO START THINKING ABOUT HOW WE CAN INCENTIVIZE PEOPLE TO DEVELOP AROUND POTENTIAL TRANSIT THAT'S BEING CREATED OR INFRASTRUCTURE THAT ALREADY
EXISTS? >> AND THE BEAUTY, IF THERE'S INFRASTRUCTURE THAT ALREADY EXISTS, THEN THE COST IS NOT AS HIGH FOR THE DEVELOPER TO COME IN.
THEY'RE NOT HAVING TO BUILD THAT DEVELOPMENT TO CONNECT TO. AND IF THERE WAS A PREVIOUS ACCOUNT OR A PREVIOUS METER AT THAT SITE, THEN THEY EITHER DON'T HAVE TO PAY IMPACT FEES OR THEY ONLY HAVE TO PAY THEM FOR THE INCREASE IF THEN THEY'RE INCREASING IN DEMAND BY, LET'S SAY, 10 ADUS. THERE'S SAVINGS THERE TOO. I KNOW BROOKS IN PARTICULAR HAS BEEN ABLE TO BENEFIT FROM THAT BECAUSE THERE WERE ALREADY ACCOUNTS AND METERS AND THEY'RE
ABLE TO BE TRANSFERRED AND UPGRADED FOR FUTURE USE. >> KAUR: GREAT.
EVEN IN THE INFILL AREAS WHERE YOU MENTIONED THOSE COSTS, THAT'S ONLY FOR NEW CONNECTIONS
AND NEW METERS THAT ARE BEING DEVELOPED? >> EXACTLY.
>> KAUR: AWESOME. THANK YOU SO MUCH FOR YOUR WORK ON THIS AND FOR YOUR COMMUNITY ENGAGEMENT. WE APPRECIATE IT. THANKS, MAYOR.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER KAUR. COUNCILMEMBER WHYTE.
>> WHYTE: YEAH, BRIEFLY. NOT MUCH TO SAY ON THIS. I THINK THAT EVERY INDICATION IS THAT Y'ALL'S PROCESS WAS REALLY GOOD ON THIS. IT WAS OPEN, TRANSPARENT, AND IT WAS REALLY DATA DRIVEN. AND SO CERTAINLY APPRECIATE THAT.
I DO THINK COUNCILWOMAN ALDERETE GAVITO'S COMMENT WITH RESPECT TO HOW THIS IS GOING TO AFFECT THE NEW HOUSING MARKET IS AN INTERESTING ONE. WITHOUT QUESTION, THESE IMPACT FEES ARE GOING TO BE PASSED ON TO THE END USER, RIGHT? I MEAN, THE DEVELOPER IS GOING TO PASS THEM ON TO WHOEVER'S BUYING THE HOME AND IT'S GOING TO MAKE THE HOME MORE EXPENSIVE.
AND SO IT WOULD BE REALLY INTERESTING TO TRACK THAT AND SEE WHAT SORT OF EFFECT PERHAPS THESE NEW IMPACT FEES WILL HAVE SO THAT WE CAN TAKE A LOOK AT THAT DATA I GUESS FIVE YEARS
[01:40:06]
FROM NOW WHEN WE'RE LOOKING AT DOING THIS AGAIN. THANKS.>> WILL DO. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE.
COUNCILMEMBER VIAGRAN. >> VIAGRAN: THANK YOU. THANK YOU FOR THE PRESENTATION.
I THINK MY CONCERN IS VERY MUCH SIMILAR TO COUNCILWOMAN ROCHA GARCIA'S.
THE ISSUE IS GOING TO BE IN THE SOUTHERN SECTOR THERE ARE PARTS WHERE WE HAVE NO INFRASTRUCTURE, ESPECIALLY WHERE WATER AND SEWER IS CONCERNED. OR THE EXPENSE TO GET TO A LIFT IS IMMENSE. AND WE NEED TO ADDRESS THAT BECAUSE IT HAS TRADITIONALLY BEEN IGNORED. SO NOT ONLY DO WE NEED YOU TO CONTINUE TO CONTRIBUTE THE $3 MILLION BUT WE ALSO NEED TO SEE A MORE SOLIDIFIED PLAN ABOUT HOW WE'RE MOVING SOUTH AND HOW WE'RE BUILDING THERE. I THINK YOU NEED TO REACH OUT TO SOUTH TEXAS BUSINESS PARTNERSHIP. I THINK WE NEED TO LOOK AT THE DEVELOPMENTS THAT ARE ALREADY THERE AND COMING. AND THE AREAS THAT ARE PART SAN ANTONIO AND PART THE COUNTY -- BECAUSE THEY MAY BE FUTURE SAN ANTONIO RESIDENTS ONE DAY IN THE FUTURE DISTRICT 3 OR FUTURE NEW RESIDENTS. I THINK THERE NEEDS TO BE A LOT MORE CONVERSATION AND I LOOK FORWARD TO TALKING TO THE GROUPS THAT WERE A PART OF THIS CONVERSATION.
THANK YOU. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER VIAGRAN.
COUNCILMEMBER PELAEZ. >> PELAEZ: A DIFFERENT ANGLE OF APPROACH ON THIS TOPIC.
A LONG TIME AGO I WAS REPRESENTING SOME NONPROFIT ORGANIZATIONS WHO WERE BUILDING OUT OR EXPANDING THEIR BUILDINGS AND THEY WERE PRESENTED WITH THE PROBLEM OF IMPACT FEES FOR THE EXPANSION OF THEIR OPERATION. WE CAME TO THE CITY AND WE CAME TO SAWS TO SEE WHAT WE COULD DO TO MAKE THAT A LESS DIFFICULT PILL TO SWALLOW AND THANKFULLY, SAWS, YOU WERE VERY HELPFUL IN THAT. DO WE HAVE A POLICY AROUND SETTING ASIDE A CERTAIN NUMBER OF IMPACT FEES FOR NONPROFIT ORGANIZATIONS OR -- YEAH. THAT'S THE QUESTION.
>> AND THAT ULTIMATELY FALLS UNDER THE CITY. SAWS GIVES TO THE CITY $3 MILLION FOR IMPACT FEE WAIVERS AND IT IS REALLY THE CITY THEN DETERMINES THE PROGRAM FOR -- THAT GOES TO AFFORDABLE HOUSING, WHAT GOES TO NONPROFITS, WHAT GOES TO ECONOMIC DEVELOPMENT. WE DON'T GOVERN THAT. THAT IS A CITY FUNCTION.
>> PELAEZ: IS THERE A POLICY AROUND THAT, ERIK, OR IS THAT ON A CASE-BY-CASE BASIS?
>> WALSH: WE HAVE A COUNCIL-APPROVED POLICY ON WHERE WE TARGET THAT MONEY.
AND SO THE ISSUE YOU BRING SHOULD MAKE NEXT TIME WE UPDATE THAT. VERONICA, DO WE DO IT ANNUALLY
OR EVERY THREE YEARS? >> WE LAST MADE UPDATES JUST OVER A YEARS AGO BUT THEY'RE IN EFFECT UNTIL WE REVIEW THEM. WITH THESE PROPOSED IMPACT FEE INCREASES, AS SAWS IS MENTIONING, THE COMMITMENT IS $3 MILLION THROUGH THE YEAR 2025.
SO WE'LL BE LOOKING AT HOW THIS IMPACTS THE COST OF HOUSING, PARTICULARLY AFFORDABLE HOUSING, AND WHAT RECOMMENDATIONS, IF ANY, WE BRING TO COUNCIL REGARDING THAT SET ASIDE.
>> WALSH: THANK YOU, VERONICA. WE CAN -- BETWEEN NOW AND MAY 16 CONVERSATION, KIND OF A STAFF RECOMMENDATION ON TIMING TO WHEN WE CAN REVISIT THAT STUFF AND WHAT THAT ALLOCATION IS.
>> PELAEZ: I APPRECIATE THAT BECAUSE I UNDERSTAND THAT OUR PRIORITY IS HOUSING AND WE'RE VERY GOOD AT BEATING THAT DRUM AND NOT LETTING ANYBODY FORGET THAT HOUSING IS FRONT AND CENTER. BUT, YOU KNOW, WE ALSO HAVE NONPROFIT ORGANIZATIONS THAT ARE EXPANDING AND OUR SOCIAL SAFETY NET IS VERY IMPORTANT AS WELL. SO FINDING THEM EXCLUDED FROM CONSIDERATION AT THE EXPENSE OF HOUSING I THINK IS -- WOULD BE UNWISE OF US.
I WANT TO MAKE SURE THAT WE'RE CONSTANTLY KEEPING TRACK OF THAT ONE ELEMENT OF WHERE WE MIGHT BE ABLE TO BE HELPFUL TO THE FUTURE NEEDS OF NONPROFITS AS THEY BUILD OUT THEIR FACILITIES.
BUT I THINK YOU GET IT, ERIK. THANK YOU FOR THAT. I APPRECIATE IT.
LASTLY, AS FAR AS APPRECIATION GOES, ROBERT, I THINK YOU GUYS HAVE, AT LAST COUNT, SOMETHING LIKE 2,000 EMPLOYEES. AND THOSE MEN AND WOMEN ARE SAN ANTONIANS AND THEY WORK WHEN
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IT'S RAINING, WHEN IT'S FREEZING, WHEN IT'S EXTRA HOT, WHEN IT'S BEAUTIFUL OUTSIDE.THEY WORK IN TRAFFIC AND OFTENTIMES THEY'RE ALSO DEALING WITH PEOPLE IN CRISIS AND AT THEIR WORST. THOSE TIMES THAT I HAVE HAD YOUR EMPLOYEES OUT AT MY HOUSE AND THAT I'VE HAD TO INTERACT WITH THEM, IT'S JUST ALWAYS BEEN A PLEASURE DEALING WITH THEM.
THANKS FOR CREATING THAT CULTURE OVER THERE ON THE EXPECTATION THAT EVEN THE FIELD WORKERS, YOU KNOW, ARE RESPONSIBLE FOR MAKING SURE THAT WE FEEL LIKE WE'RE LEFT BETTER OFF HAVING CONTACTED
THEM. THANK YOU FOR THAT. >> PUENTE: I APPRECIATE THE COMPLIMENTS. I APPRECIATE THE COMMENTS. I KNOW OUR EMPLOYEES LISTEN TO WHAT'S GOING ON HERE. THEY WILL HEAR ABOUT IT AND IT'S REALLY SOMETHING, WHEN THEY GET RECOGNIZED AT THIS KIND OF LEVEL OF WHAT THEY'RE DOING. WE APPRECIATE IT.
>> PELAEZ: BY THE WAY, ALL OF THAT IS JUST EXCLUDING GAVINO RAMOS.
>> PUENTE: THANK YOU. THERE WERE A COUPLE OF QUESTIONS ASKED BY A COUPLE OF COUNCIL MEMBERS ABOUT THE COST OF THESE IMPACT FEES AND ABOUT HOUSING AND AFFORDABLE HOUSING.
IT IS LESS THAN 1% OF THE COST OF A HOUSE. THE HIGHEST IMPACT FEES ARE IN THE PARTS OF THE CITY WHERE THE GROWTH IS THE HIGHEST. FINANCING, LABOR COST, MATERIAL COST IS WHAT WILL ADD TO THE COST OF THE HOUSE. IMPACT FEES DO NOT ADD TO THE COST OF THE HOUSE. IT'S MARGINAL COMPARED TO ALL THESE OTHER THINGS.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER PELAEZ. ANY FURTHER DISCUSSION? JUST A COUPLE OF COMMENTS. I DO WANT TO THANK SAWS' STAFF AND THE CIAC THEMSELVES FOR THE WORK THAT THEY'VE DONE TO BRING US THE RATE PACKAGE. THIS IS THE FIRST ONE THAT'S GONE -- TO USE THE WORD "FRICTIONLESS" THAT I CAN REMEMBER AND ANYBODY WHO HAS OBSERVED PREVIOUS IMPACT FEE DISCUSSIONS, IT WAS ALWAYS THE WATER SYSTEM AND THE CITY ON ONE SIDE OF A VERY ANTAGONISTIC APPROACH WITH THE DEVELOPMENT COMMUNITY.
I THINK THERE'S A NUMBER OF THINGS THAT HAVE HAPPENED IN THE INTERIM THAT HAS LED US TO A POSITION WHERE WE CAN LOOK AT A RATE IMPACT FEE DISCUSSION AND MOVE IT FORWARD WITH RELATIVE HARMONY, IF THAT EXISTS. ONE OF THEM IS THAT SAWS DID WHAT WE ASKED THEM TO DO, WHICH IS RESTRUCTURE THE RATES. IN DOING THAT A FEW YEARS AGO ALMOST ALL RATEPAYERS OF EVERY CLASS SAW A BREAK. AND THE COMMENT WAS MADE THE IMPACT FEE HAS TAKEN CARE OF INFRASTRUCTURE, IF NOT PAID FOR THROUGH IMPACT FEES WOULD BE ON THE RATEPAYERS THEMSELVES TO PAY FOR. I THINK WE HAVE HAD A VERY ROBUST DISCUSSION AND A PLAN BEING IMPLEMENTED ON AFFORDABLE HOUSING AND ON HOUSING IN GENERAL THAT THAT THE DEVELOPMENT COMMUNITY, POLICYMAKERS, PRODUCERS IN THE PRIVATE SECTOR ARE ALL SEEING THIS SOLUTION AS A COLLECTIVE EFFORT. AND SO THE IMPACT FEES ARE, UNFORTUNATELY SOMETHING WE'VE GOT TO ALL PAY FOR WITH REGARD TO THE INFRASTRUCTURE THAT NEEDS TO BE BUILT IN A GROWING CITY. BUT IT'S EVERYBODY'S COLLECTIVE RESPONSIBILITY AND WE'VE MEASURED IT OUT IN A COLLABORATIVE AND RESPONSIBLE WAY AS POSSIBLE.
THERE IS A DISCUSSION ABOUT WHAT THAT MEANS IN TERMS OF THE ADDITIONAL FEE INCREASE REVENUE ON SAWS' SIDE THAT WE SHOULD TALK ABOUT AND WHAT THAT MEANS FOR THE CITY OF SAN ANTONIO AND WHAT WE'RE TRYING TO DO WITH AFFORDABLE HOUSING. BUT WE CAN HAVE THAT DISCUSSION LATER ON. I DO THINK THIS IS A STRONG PACKAGE.
GREAT WORK BY CIAC. GREAT WORK BY STAFF AND EXCELLENT PRESENTATION, ANDREA.
>> THANK YOU. >> MAYOR NIRENBERG: IF THERE'S NO FURTHER DISCUSSION, WE DO NOT HAVE AN EXECUTIVE SESSION TODAY SO WE DO HAVE A 5:00 P.M. PUBLIC COMMENT PERIOD.
SO AT 3:55 P.M. ON APRIL 3, 2024 WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.