[1. 19-6107 Staff presentation of the FY 2020 Proposed Budget focusing on, but not limited to, the following City Departments or Initiatives: [Erik Walsh, City Manager; Justina Tate, Director, Management and Budget]]
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WELCOME TO THE CITY COUNCIL B SESSION OF AUGUST THE 21ST, 2019.
>> MAYOR NIRENBERG: WELCOME, EVERYONE, TO OUR CITY COUNCIL B SESSION.
OUR BUDGET'S SESSION CONTINUE TODAY.
WE'RE GOING TO CONTINUE OUR DISCUSSION FROM YESTERDAY, PICKING UP WITH THE DEPARTMENT THAT WE DIDN'T GET TO, AND THAT IS THE DEBT PLAN WITH BEN GORZELL, AND THEN WE HAVE A SERIES OF DEPARTMENTS SUSTAINABILITY, ECONOMIC DEVELOPMENT AND CENTER CITY OPERATIONS THAT WE'LL GO THROUGH.
SO WE'LL HAVE QUESTIONS AFTER THE DEBT PLAN, AND THEN QUESTIONS AGAIN AFTER THE THREE DEPARTMENTS DO THEIR BRIEFINGS, SO I'LL TURN IT OVER TO OUR CITY MANAGER, ERIK ER WALSH.
>> WALSH: YOU SAID IT VERY WELL.
I'M GOING TO TURN IT OVER TO BEN.
>> GORZELL: GOOD AFTERNOON, MAYOR AND COUNCILMEMBERS.
AS THE CITY MANAGER STATED I'LL BE COVERING THE DEBT PLAN TODAY.
FIRST OFF, I WISH I COULD TELL YOU THIS IS GOING TO BE A REALLY EXCITING PRESENTATION.
UNFORTUNATELY SH IT'S DEBT, SO IT'S A LITTLE BIT OF A DRYER CONVERSATION, BUT WE'LL TRY TO GET THROUGH IT AS QUICK AS WE CAN.
I'M GOING TO START WITH JUST SOME BACKGROUND A LITTLE BIT ON THE DIFFERENT TYPES OF DEBT THAT WE ISSUE.
WE ISSUE GENERAL OBLIGATION BONDS, WHICH ARE PROBABLY MOST FAMILIAR WITH, MOST CITIZENS ARE MOST FAMILIAR WITH.
THESE ARE VOTER AUTHORIZED BONDS.
THEY'RE SUPPORTED BY PROPERTY TAXES, AND WE USE PROPERTY TAXES TO PAY FOR THAT DEBT.
WE ALSO ISSUE CERTIFICATES OF OBLIGATION WHICH ARE ALSO PAYABLE FROM PROPERTY TAXES.
THEY ARE JUST LIKE A GENERAL OBLIGATION BOND, THE ONLY DIFFERENCE IS THEY'RE NOT VOTER AUTHORIZED.
WE DO HAVE A STATUTORY PROCESS THAT WE GO THROUGH.
WE HAVE TO GIVE NOTICE TO THE PUBLIC, BE VERY CLEAR ABOUT WHAT WE INTEND TO ISSUE THOSE CERTIFICATES OF OBLIGATION FOR, AND THEN THERE'S A PERIOD OF TIME ONCE WE'VE ADVERTISED THAT, BEFORE YOU ALL AS A GOVERNING BODY CAN TAKE ACTION AND WE CAN MOVE FORWARD WITH AN AUTHORIZATION TO ISSUE CERTIFICATES OF OBLIGATION.
THE THIRD CATEGORY ARE TAX NOTES, THEY ARE ALSO PAYABLE FROM PROPERTY TAXES, ALSO NOT VOTER AUTHORIZED, BUT THEY'RE SHORTER IN LENGTH.
THEY CAN'T EXCEED SEVEN YEARS, SO THE BONDS HAVE TO BE -- OR THE TAXES -- TAXPAYERS HAVE TO BE REPAID WITHIN SEVEN YEARS.
THE LAST CATEGORY IS REVENUE DEBT, NOT VOTER AUTHORIZED, BUT WE'RE NOT USING PROPERTY TAXES TO PAY FOR THE DEBT, WE'RE USING SOME SPECIFIC REVENUE SOURCE.
BEST EXAMPLE OF THIS WOULD BE LIKE THE AIRPORT.
WE ISSUE AIRPORT BONDS, THE ONLY THING THAT IS PLEDGED TOWARDS THE REPAYMENT OF THE DEBT AND THAT IS USED FOR THE REPAYMENT OF THE DEBT IS AIRPORT REVENUES.
IN TERMS OF BOND RATING, THESE ARE THE SCALES THAT THE THREE MAJOR RATING AGENCIES USE, FITCH, MOODIES AND STAND PORED AND PORE -- STANDARD STANDARD AND POORS.
ANYTHING BELOW BBB WOULD BE CONSIDERED NOT INVESTMENT GRADE.
ON THIS SLIDE WE HAVE OUR CURRENT BOND RATINGS FOR ANY OF THE DEBT THAT WE HAVE OUTSTANDING.
ON THE TOP ROW, WE HAVE OUR GENERAL OBLIGATIONS, CERTIFICATE OF OBLIGATION AND TAX NOTES, BASICALLY ALL THE DEBT THAT WE HAVE THAT IS SUPPORTED WITH AND/OR USED PROPERTY TAXES TO REPAY THAT
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DEBT.WE HAVE, OF COURSE, EXCELLENT RATINGS THERE.
WE HAVE AAA RATINGS BY MOODY'S AND S & P WHICH WERE REAFFIRM LD THIS PAST SUMMER AS WELL AS OUR AA PLUS WITH FITCH.
WITH RESPECT TO THOSE RATINGS, THE TWO BIGGEST CHALLENGES I THINK WE STILL HAVE FACING US WITH RESPECT TO THOSE RATINGS ARE MAINTAINING OUR FINANCIAL POSITION, GIVEN THE CHANGE FINANCIAL PARAMETERS THAT WE OPERATE IN WHILE STILL BEING ABLE TO MEET THE MANY DEMANDS OF THE COMMUNITY, AND THEN OF COURSE PROPOSITION C AND THE UNCERTAINTY THAT BINDING ARBITRATION PROCESS WITH THE FIRE UNION BRINGS INTO THE PROCESS.
I WON'T GO THROUGH ALL THE OTHER RATINGS THERE.
I'M HAPPY TO FOLLOW UP WITH Y'ALL INDIVIDUALLY IF THERE ARE QUESTIONS ABOUT ANY OF THOSE OTHER RATING THAT WE HAVE LISTED THERE FOR OUR OTHER TYPES OF DEBT THAT'S OUTSTANDING.
THIS PAST AUGUST 13TH, WE DID ISSUE BONDS THAT YOU-ALL AUTHORIZED US TO MOVE FORWARD WITH BACK IN JUNE.
HAD A GREAT, GREAT RESULT ON THIS TRANSACTION.
WE HAD AN OVERALL INTEREST COST OF 2.2 7%.
SO ANY TIME YOU CAN TALK ABOUT ISSUING A LONG-TERM DEBT, LONG-TERM BONDS AND YOU END UP WITH AN INTEREST RATE OF 2.2 7%, THAT'S REALLY GOOD.
IT MEANS THAT OUR INTEREST COSTS ARE REALLY LOW ON THIS BOND ISSUE.
IT INCLUDED THREE DIFFERENT COMPONENTS.
WE HAD OUR GENERAL OBLIGATION BONDS, WHICH WERE REALLY THE NET -- WERE THE THIRD INSTALLMENT OF THE 2017 BOND AUTHORIZATION THAT WAS APPROVED AT A BOND ELECTION IN 2017.
WE ALSO INCLUDED A REFINANCING OF DEBT, SO MUCH LIKE PEOPLE CAN REFINANCE A MORTGAGE FOR SAVING, WE CAN REFINANCE SOME OF OUR DEBT AT TIMES FOR SAVINGS.
WE REFINANCED ABOUT $187 MILLION IN BONDS, WE GOT PRESENT VALUE INTEREST COST SAVINGS OF $21.6 MILLION, THE PRESENT VALUE PIECE REALLY JUST MEANS IF YOU TAKE THE LOWER INTEREST COST OVER THE REMAINING LIFE OF THAT DEBT AND YOU PUT IT IN TODAY'S DOLLARS, IT'S A VALUE OF $21.6 MILLION.
ANY TIME WE LOOK AT A REFINANCING, WE ALWAYS LOOK AT THE TERM OF TODAY'S DOLLARS, MAKING SURE IT'S AN EFFECTIVE TRANSACTION FOR US.
BUT A REALLY GREAT RESULT FROM THAT PRICING.
THE OTHER TWO COMPONENTS THAT WERE INCLUDED IN THERE WERE SOME CERTIFICATES OF OBLIGATION AT ABOUT $36,000,000.34.5 MILLION IN TAX NOTES, ALL OF THAT TO FUND PROJECTS WITHIN THE APPROVED CAPITAL BUDGET.
TOTAL OUTSTANDING DEBT IS $3.1 BILLION.
THIS INCLUDES OUR RESTRICTED DEBT AND REVENUE DEBT AS WELL.
YOU SEE THAT BROKEN DOWN HERE ON THIS SLIDE.
TOP ROW IS, AGAIN, ALL OF OUR PROPERTY TAX SUPPORTED DEBT AT JUST OVER $2 BILLION WITH AN EFFECTIVE INTEREST RATE ON ALL OF THOSE BONDS OF 2.51%.
THE AVERAGE LIFE THAT YOU SEE SITTING OFF TO THE FAR RIGHT, THAT IS A MEASURE OF SOMETHING THE RATING AGENCIES LOOK AT A LOT.
IT'S SOMETHING THAT WE FOCUS ON A LOT.
IT REALLY IS A MEASURE OF HOW FAST YOU'RE PAYING OFF YOUR PRINCIPLE, SO AN EASY WAY TO LOOK AT THAT IF I ISSUE 20-YEAR BONDS AND IF WE'RE PAYING THE SAME AMOUNT OF PRINCIPLES IN THE FIRST 10 YEARS AS WE ARE IN THE LAST 10 YEARS YOU'RE GOING TO HAVE AN AVERAGE LIFE OF 10 ON THAT 20-YEAR DEBT.
IN THIS CASE, WE'RE AT 8.7 YEARS, WHICH IS STRONG.
THIS IS ONE OF THE THINGS WE USE TO HELP US MANAGE OUR DEBT AS WE GO THROUGH DIFFERENT ECONOMIC CYCLES.
NEXT LISTED THERE ARE ALL THE AIRPORT OUTSTANDING BOND ISSUES, OUR GENERAL AVIATION BONDS, OUR PASSENGER FACILITY CHARGE BONDS AND OUR CUSTOMER FACILITY CHARGE BONDS WHICH THE LAST CATEGORY WAS REALLY USED TO BUILD THE CONRACK FACILITY.
WE'RE LOOKING AT, YOU'LL SEE THERE ON THE AIRPORT GENERAL AVIATION REVENUE BONDS AND ON THE PASSENGER FACILITY CHARGE BONDS, YOU CAN SEE THE INTEREST RATES ARE A LITTLE BIT HIGHER, 4.6%, FOUR .8%, THAT'S AS A RESULT OF THE TYPE OF BOND THAT WE'RE ISSUING THERE, THE RATING TIED TO THAT.
BUT ALSO AS WE HAVE OPPORTUNITIES TO REFINANCE DEBT, WE'LL LOOK AT THOSE AND IN THIS CASE, WE DO HAVE SOME BONDS THAT ARE CURRENTLY CALLABLE, MEANING THEY'RE ELIGIBLE TO BE REFINANCED.
SO WE'RE GOING TO BE COMING TO YOU ALL IN THE FALL AND ASKING FOR YOUR AUTHORIZATION TO MOVE FORWARD WITH A REFINANCING FOR SAVINGS.
AND THAT WILL CERTAINLY HELP THE AIRPORT, AS WE PUT THAT TRANSACTION TOGETHER, WE'RE GOING TO BE LOOKING AT A COUPLE OF THINGS.
WE WANT TO MAKE SURE THAT WE ACHIEVE INTEREST COSTS SAVING, BUT THAT WE ALSO MAINTAIN FLEXIBILITY WITHIN THE DEBT STRUCTURE.
AS YOU ALL KNOW, THE AIRPORT'S MOVING FORWARD WITH THEIR MASTER PLAN. AS THAT GETS DONE, WE NEED TO MAKE SURE WE'RE BUILDING CAPACITY FOR THE FUTURE AS WELL SO THAT WE HAVE CAPACITY TO HOPEFULLY WORK ON IMPLEMENTING THE RESULT OF THAT MASTER PLAN.
SOME OF THE OTHER ONES LISTED THERE, I'LL JUST NOTE ARE THE PUBLIC FACILITIES CORPORATION LEASE REVENUE BONDS AT 544.7 MILLION.
THOSE ARE REALLY THE BONDS THAT ARE TIED TO THE CONVENTION CENTER.
IT INCLUDES THE $325 MILLION THAT WE ISSUED TO DO THE MOST RECENT EXPANSION IN 2012, PLUS THE DEBT THAT WAS OUTSTANDING PRIOR TO THAT.
WE REFINANCED ALL OF THAT INTO THIS PUBLIC FACILITIES CORPORATION LEASE REVENUE BOND
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STRUCTURE.THOSE BONDS ARE BEING PAID FOR WITH HOTEL OCCUPANCY TAX REVENUES, THAT IS THE ONLY SOURCE OF REVENUE THAT'S BEING USED TO RETIRE THAT DEBT.
AND, AGAIN, AS WE HAVE OPPORTUNITIES WITHIN THE MARKET AND AS OUR BONDS BECOME CALLABLE, WE'LL ALWAYS LOOK FOR OPPORTUNITIES TO REFINANCE DEBT SO THAT WE CAN LOWER OUR OVERALL COST OF BOW BORROWING AND MAKING SURE WE'RE ACHIEVING INTEREST COST SAVINGS WHERE WE CAN.
MOVING OVER TO OUR PROPERTY TAX DEBT OUTSTANDING IT IS AT JUST ABOUT $2 BILLION, THAT INCLUDES OUR GENERAL OBLIGATION BONDS, OUR CERTIFICATE OF OBLIGATIONS AND TABS NOTES.
WHEN YOU LOOK AT OUR LEGAL LIMITS FOR OUR PROPERTY TAX SUPPORTED DEBT, THERE'S REALLY TWO THINGS WE LOOK AT.
WE LOOK AT STATE LAW AND WE LOOK AT THE CITY CHARTER.
THE CHARTER SAYS THAT OUR OUTSTANDING PROPERTY TAX SUPPORTED DEBT, ONLY THE PROPERTY TAX SUPPORTED PIECE, CANNOT EXCEED 10% OF OUR TOTAL ASSESSED VALUATION.
BASED ON OUR TOTAL ASSESSED VALUATION, OUR TAX -- OUR PROPERTY TAX DEBT CEILING IS $13.3 BILLION, AND YOU'LL SEE ON THE NEXT SLIDE THAT WE'RE NOWHERE NEAR THAT.
AS I MENTIONED WE ONLY HAVE $2 BILLION OUTSTANDING.
THE OTHER THING WE LOOK AT FROM A STATE LAW PERSPECTIVE IS PROPERTY TAX -- THE PROPERTY TAXES THAT WE LEVY, THE TAX RATE THAT WE LEVY TO ACTUALLY PAY FOR OUR PROPERTY TAX SUPPORTED DEBT CANNOT EXCEED $1.50 PER $100 EVALUATION.
OUR CURRENT TAX RATE FOR THE DEBT PORTION IS 21 CENTS AND IT'S BEEN 21 CENTS SINCE 2004.
WHEN YOU LOOK AT OUR ACTUAL DEBT VERSUS OUR LEGAL CAPACITY, IN 2006 WE WERE AT ABOUT 15% OF OUR DEBT CEILING WHICH IS, AGAIN, A FUNCTION OF OUR ASSESSED VALUATION, WHICH IS GENERATING THE PROPERTY TAX REVENUES THAT WE'RE USING TO PAY FOR THE DEBT.
IF YOU LOOK AT 2019, WE'RE AT ABILITY 14% OF -- ABOUT 14% OF OUR DEBT CEILING.
ON A SUBSEQUENT SLIDE COMING UP HERE IN A LITTLE BIT, I'LL SHOW YOU HOW DIFFERENT OUR BOND PROGRAMS LOOK PRIOR TO 2006, THEY WERE MUCH SMALLER, VERSUS WHAT WE'VE BEEN ABLE TO DO SINCE 2007, BUT, AGAIN, I THINK WE'VE DONE IT IN A VERY FISCALLY RESPONSIBLE WAY.
E WE'RE AT ABOUT THE SAME PLACE WE WERE IN 2006.
IN TERMS OF OUR DEBT PER CAPITA THE STATE COMPTROLLER PUTS OUT ON THEIR WEBSITE A COMPARISON OF OUR AD VALOREM DEBT PER CAPITA BY CITY.
YOU CAN SEE IN TERMS OF THE LARGEST CITIES, WE ARE -- WE RANK SEVENTH OUT OF TENTH LOWEST IN THE STATE AT $1,031 PER CAPITA IN TERMS OF OUR PROPERTY TAX SUPPORTED DEBT.
THE PROPERTY TAX RATE, WE ACTUALLY -- WE ACTUALLY ASK YOU ALL TO APPROVE THAT AND ARE ACTUALLY REQUIRED TO APPROVE THAT IN TWO DIFFERENT COMPONENTS.
THE FIRST IS CALLED THE MAINTENANCE AND OPERATIONS COMPONENT, WHICH FUNDS THE GENERAL FUND.
THAT'S OUR PROPOSED .34677 CENTS PER $100 EVALUATION, AND THEN WE'LL ASK YOU SEPARATELY TO ADOPT AN INS, INTEREST AND SEEKING FUND TAX RATE, IN THIS CASE IT'S .21150 CENTS PER $100 EVALUATION.
THAT 21 CENTS WE'VE HAD IN PLACE SINCE 2004, SO WE'VE BEEN MANAGING TO CAPACITY WITH THAT TAX RATE.
SO EVERY BOND PROGRAM WE'VE DONE, WE TRY TO BUILD PROJECTIONS AND ASSUMPTIONS THAT ALLOW US TO HOLD THAT TAX RATE AT 21 CENTS AND NOT BE COUNTING ON AN INCREASE IN THE TAX RATE IN ORDER TO ACHIEVE OUR BOND PROGRAMS. SO, AGAIN, THE TOTAL TAX RATE PROPOSED FOR NEXT YEAR IS .55827 CENTS PER $100 EVALUATION.
MOVING OVER TO THE PROPERTY TAX DEBT PLAN AND SOME OF THE ASSUMPTIONS WE LOOK AT, THE BIGGEST ONE THAT'S GOING TO INFLUENCE HOW -- WHAT CAPACITY LOOKS LIKE IN THAT BOND PROGRAM OR IN THE DEBT PLAN IS GOING TO BE OUR NET TAXABLE ASSESSED VALUATION GROWTH.
SO WHAT ASSESSED VALUATION DOES IN THE FUTURE, HEAVILY INFLUENCES WHAT'S GOING TO HAPPEN WITH OUR DEBT CAPACITY.
DEBT SERVICE TAX RATE, I'VE MENTIONED, YOU KNOW, FROM A COUNCIL POLICY PERSPECTIVE, SINCE 2004, WE HAVE BEEN MANAGING THE DEBT PLAN TO THAT 21 CENTS TAX RATE.
WE DO LOOK AT THE LENGTH OF OUR DEBT.
I MENTIONED HOW WE MANAGE THE AVERAGE LIFE.
THAT COMES INTO PLAY, AS I MENTIONED, IT'S A FUNCTION OF HOW FAST YOU PAY PRINCIPLE.
SO WHEN WE'RE ON A STRONGER ECONOMIC CYCLE, WE'LL TRY TO ACCELERATE PRINCIPLE A LITTLE BIT.
AND THAT'S WHY YOU SEE THAT 8.7 YEARS ON A PREVIOUS SLIDE.
AS THE ECONOMY STARTS TO SLOW AND WE GO THROUGH THOSE SLOWER CYCLES OR POTENTIALLY INTO A RECESSION, THEN WE'LL START TO EXTEND IT A LITTLE BIT, BUT WE NEVER GO ABOVE THE 10 YEARS.
THAT GIVES US A LITTLE BIT OF FLEXIBILITY TO ADJUST TO THE ECONOMIC CONDITIONS WITHOUT HOPEFULLY HAVING TO SAY TO YOU AND SAY WE REALLY NEED TO DELAY PROJECTS -- AUDIO] -- BECAUSE WE'RE IN A RECESSION, WE CAN'T AFFORD TO ISSUE THE DEBT.
IT'S ONE OF THE LEVERS THAT WE
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CAN PULL TO TRY TO MANAGE THROUGH THOSE KINDS OF RECESSIONS.WE WERE ABLE TO DO THAT WITH THE LAST MAJOR RECESSION WITHOUT HAVING TO REALLY STOP OR DEFER PROJECTS IN THE BOND PROGRAM.
WE WERE ABLE TO KEEP ALL OF THOSE PROBABILITIES -- PROJECTS MOVING.
AND, OF COURSE, THE WIN/WIN THERE THAT MANY CONTRACTORS BECAUSE OF THE RECESSION, WERE ALSO TRYING TO KEEP EMPLOYEES EMPLOYED, TRYING TO KEEP WORK COMING, SO WE GOT REALLY STRONG BIDS, HELPED STIMULATE THE ECONOMY FROM OUR STANDPOINT, SO WE THINK THAT THAT'S A GOOD PROGRAM ALL THE WAY AROUND FROM THAT STANDPOINT.
WE TRY TO DO OUR BEST TO TRY TO PROJECT WHAT INTEREST RATES ARE GOING TO DO OVER THE LONG TERM, VERY HARD TO DO, BUT WE'VE KIND OF BUILT A MODEL THAT WE THINK GIVES US SOME FLEXIBILITY TO ADJUST.
I MENTIONED THE AVERAGE LIFE THAT WE MANAGE.
AND AS WE HAVE FUNDS IN PLACE, WE HAVE AN INVESTMENT RATE THAT WE'RE ASSUMING, AND THEN WE HAVE A LITTLE BIT OF A FUND BALANCE IN THIS PROGRAM THAT ALLOWS US, AGAIN, TO ADJUST TO THE ECONOMY AS IT'S GROWING OR SLOWING, WE'RE ABLE TO USE THAT TO HELP US A LITTLE BIT MANAGE.
AND, AGAIN, THE GOAL HERE IS TO MAKE SURE THAT WE CAN TRY AND MOVE FORWARD WITH THE CAPITAL PROGRAM, WITH THE BOND PROGRAMS, WITHOUT HAVING TO SLOW DOWN OR STOP PROJECTS, REGARDLESS OF WHAT THE ECONOMY'S DOING.
AND OBVIOUSLY, IT DEPENDS ON HOW DEEP A RECESSION YOU HAVE AND HOW MUCH PROPERTY TAX VALUES FALL, BUT WE WERE ABLE TO DO THAT DURING THIS LAST MAJOR RECESSION.
IN TERMS OF THE LATEST -- TAX DEBT PLAN, THIS KIND OF SUMMARIZES THE LAST SEVERAL PROGRAMS. SO YOU CAN SEE PRIOR TO 2007, WE HAD VERY SMALL -- THE BOTTOM BARS ARE GENERAL OBLIGATION PROGRAMS, AND THEN YOU HAVE CERTIFICATE OF OBLIGATIONS STACKED ON TOP OF THAT.
YOU CAN SEE THAT THEY WERE MUCH SMALLER PROGRAMS IN PLACE.
IN 2007, WE STARTED TO MOVE TOWARDS LARGER BOND PROGRAMS, THE SAME TAX RATE, STILL HOLDING IT AT 21 CENTS, BUT REALLY FOCUSING ON LARGER GENERAL OBLIGATION BOND PROGRAMS, YOU SEE CERTIFICATES OF OBLIGATION IN THERE AS WELL THAT ALLOW US TO ADD CAPACITY IN BETWEEN BOND ELECTIONS.
WE'VE GOT THEM PROGRAMMED EVERY FIVE YEARS FOR YOU-ALL TO HAVE THE OPTION TO GO OUT TO THE COMMUNITY WITH A BOND PROGRAM OR BOND ELECTION, BUT IN BETWEEN THERE, THE CERTIFICATES OF OBLIGATION PLAY AN IMPORTANT ROLE BECAUSE AS YOU KNOW, PROJECTS COME UP, THINGS CHANGE, THIS ALLOWS YOU TO MEET THE DEMANDS ON THE COMMUNITY AND STILL STAY WITHIN OUR FINANCIAL PARAMETERS.
TAX NOTES, I MENTIONED, ARE VERY SHORT-TERM -- THEY HAVE A VERY SHORT-TERM AMORTIZATION.
WE AMORTIZE THEM IN LESS THAN SEVEN YEARS, MOST OF THE TIME IN LESS THAN FIVE YEARS.
WE USE THOSE FOR STREETS, WE USE THOSE FOR TECHNOLOGY PROJECTS.
TECHNOLOGY PROJECTS TEND TO NOT HAVE AS LONG A LIFE IN TERMS OF A USEFUL LIFE.
SO WE'RE ABLE TO MATCH THAT UP WITH THE TAX NOTES AND THAT HAS REALLY HELPED US MANAGE OUR AVERAGE LIFE AS WELL.
THE LAST BOX YOU SEE UP THERE ON TOP, I WANTED TO NOTE WAS THAT'S WHAT WE CALL SELF-SUPPORTING DEBT.
WHAT THIS BASICALLY MEANS IS IT IS A DEBT INSTRUMENT THAT WE'RE ISSUING, SO IT CAN BE A CERTIFICATE OF OBLIGATION THAT WE'RE ISSUING TO THE BOND HOLDER.
WE'RE PLEDGING THAT WE'RE GOING TO USE PROPERTY TAXES TO PAY FOR IT, SO WE'RE TAKING ADVANTAGE OF OUR VERY STRONG AAA BOND RATING PLUS OUR AA PLUS FROM FITCH, WE'RE USING THOSE EXCELLENT BOND RATINGS TO GET A LOWER COST OF BORROWING BUT WE'RE NOT USING PROPERTY TAX INTERNALLY TO PAY FOR IT, WE'RE USING OTHER REVENUES TO PAY FOR IT.
IF WE WERE TO DO PAST, WE'VE BUA PARKING GARAGE.
IF WE WERE TO ISSUE PARKING DEBT JUST OFF OF THE PARKING SYSTEM, THE INTEREST COSTS WOULD BE MUCH, MUCH HIGHER BECAUSE THE BOND -- AUDIO] -- AS A WAY TO GET REPAID.
SO I'M GOING TO CHARGE YOU A HIGHER INTEREST COST FOR THAT.
IF WE PUT THE PROPERTY TAX PLEDGE BEHIND IT, THEY SEE THE FULL FAITH AND CREDIT OF THE CITY, THE AAA BOND RATING THERE, WE GET A LOWER COST OF BORROWING, BUT THEN I STILL USE THE PARKING REVENUES TO PAY FOR THE DEBT, SO IT'S CALLED SELF-SUPPORTING.
SO THAT'S ONE OF THE WAYS WE'RE ABLE TO TAKE ADVANTAGE OF OUR VERY STRONG BOND RATING AND LOWER THE COST OF BORROWING, NOT ONLY IN OUR GO AND TO AND TAX NOTE PROGRAM, BUT AS WELL AS SOME OF OUR OTHER ISSUANCE AS WELL.
IN TERMS OF FY 2020, SOME OF THE THINGS WE'LL BE COMING FORWARD AND ASKING YOUR APPROVAL FOR TO MOVE FORWARD WITH, THIS SEPTEMBER WE'RE GOING TO BE MOVING FORWARD WITH A $6 MILLION, WE'LL CALL IT, PRIVATE PLACEMENT.
WE'LL BASICALLY BID THIS TO A FEW BANKS AND WE'RE GOING TO PLACE $6 MILLION -- THIS IS TIED TO BUILDING RENOVATIONS THAT HAVE HAPPENED OUT AT BROOKS CITY BASE.
IN ORDER TO REIMBURSE BROOKS, THE BROOKS DEVELOPMENT AUTHORITY FOR THE WORK THAT'S ALREADY BEEN DONE THERE, I MENTIONED THE AIRPORT REFUNDING TRANSACTION.
WE'RE LOOKING AT FOR THIS FALL, THE MARKET CONTINUES TO BE IN A VERY STRONG POSITION FROM AN INTEREST RATE PERSPECTIVE IN TERMS OF ISSUING DEBT, SO WE WANT TO GO FORWARD AND CAPTURE SOME INTEREST COSTS SAVINGS AND WORK ON A TRANSACTION THAT MAINTAINS OUR FLEXIBILITY FOR THE AIRPORT GOING FORWARD.
THE CONVENTION CENTER AND ALAMODOME, THERE'S A NUMBER OF IMPROVEMENTS AT BOTH OF THOSE FACILITIES THAT WE'RE LOOKING AT.
I DON'T THINK THAT WE'LL HAVE A FINANCING DONE BY SPRING OF 2020, BUT WE'LL PROBABLY COME
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BACK TO YOU BY SPRING OF 2020 WITH A PRO PROSED PLAN IN TERMS OF WHAT WE WOULD BE LOOKING TO MAKE IMPROVEMENTS IN THOSE BUILDINGS AND HOW WE WOULD BE FUNDING THOSE IMPROVEMENTS.THAT'S SOMETHING WE'LL BE WORKING WITH THE CONVENTION CENTER, ALAMODOME AND OUR STAKEHOLDERS ON OVER THE NEXT SIX OR SEVEN MONTHS.
FROST TOWER RENOVATIONS, SPRING OF 2020 IS WHAT WE'RE TARGETING.
AS YOU'LL RECALL, WE HAVE ALREADY ISSUED DEBT TO ACQUIRE THE BUILDING.
WE HAVE -- WE OWN THE OLD FROST TOWER, NOW CALLED CITY TOWER.
WE ARE MOVING FORWARD WITH RENOVATIONS TO THAT BUILDING, AND WE NEED TO FUND THOSE RENOVATIONS -- AUDIO] -- ISSUING DEBT TO COVER THAT.
IN THAT PARTICULAR CASE, THE DEBT IS BEING PAID FOR FROM THE PRO FORMA THAT WE DEVELOPED AND HAVE SHARED WITH YOU WHERE WE'VE TOLD YOU THAT PROJECT IS GOING TO BE COST NEUTRAL TO THE CITY.
THAT CONTINUES TO BE THE CASE, AND THESE BONDS WILL BE PAID FOR OUT OF THAT FUND.
AND THEN WE HAVE, OF COURSE, HAVE OUR NEXT INSTALLMENT OF OUR GENERAL OBLIGATION BONDS, CERTIFICATE OF OBLIGATIONS AND TAX NOTES SCHEDULED FOR NEXT SUMMER.
I DON'T HAVE THE EXACT DOLLAR AMOUNTS.
WE'LL SIZE THOSE AS WE GET CLOSER, AND, AGAIN, THAT IS TO FUND THE NEXT INSTALLMENT OF THE 2017 BOND PROGRAM PLUS THE IMPROVEMENTS THAT ARE INCLUDED WITHIN THE ADOPTED 2020 CAPITAL BUDGET.
SO WITH THAT, MAYOR, THAT CONCLUDES MY PRESENTATION AND I WOULD BE HAPPY TO ANSWER ANY QUESTIONS.
THANK YOU VERY MUCH FOR THE PRESENTATION, BEN.
AND I WOULD CHALLENGE YOU FOR NEXT YEAR TO PRODUCE A SAN ANTONIO FIRE DEPARTMENT STYLE VIDEO TO START YOUR PRESENTATION.
>> GORZELL: I'M GOING TO NEED A LOT OF HELP WITH THAT, MAYOR.
>> MAYOR NIRENBERG: AND NOT IN TOTAL JEST, BECAUSE I THINK THAT THE PRESENTATION THAT YOU DELIVER EVERY YEAR IS VERY IMPORTANT FOR US AS A PICTURE OF HOW WE HAVE MAINTAINED OUR STRENGTH FISCALLY THROUGH A LOT OF DIFFICULT TIMES, AND YOU MENTIONED THE RECESSIONS.
BUT THIS PRESENTATION, IF IT COULD BE BOILED DOWN FOR THE PUBLIC, IS REALLY A PECKURE OF FISCAL STEWARDSHIP, WHICH I THINK WE'RE VERY PROUD OF.
SO KEEP UP THE GREAT WORK TO YOU AND YOUR TEAM.
>> MAYOR NIRENBERG: BUT YOU DID MENTION SOME OF THE THINGS THAT YOU HAVE TO DO KIND OF BEHIND THE SCENES TO MAKE SURE THAT WE'RE PREPARED FOR THE CYCLICAL DOWNTURN AND OTHER ISSUES THAT HAPPEN IN THE ECONOMY, INCLUDING POLITICAL.
SO WHAT -- GIVE US A PICTURE OF WHAT YOU GUYS ARE DEALING WITH RIGHT NOW AND WHAT YOU'RE EXPECTING IN SOME OF THE THINGS THAT WE NEED TO BE CONCERNED ABOUT AS WE MAKE DECISIONS ABOUT DEBT ISSUANCES AND IF -- THE LIKE.
>> GORZELL: SO CAN I GO TO SLIDE 15.
I GUESS I'LL START JUST FROM THE STANDPOINT OF SOME OF THE CHALLENGES WE'RE DEALING WITH, OF COURSE, ARE OUR CHANGE FISCAL REALITIES.
WE'VE TALKED A LOT ABOUT THAT COMING OFF THIS LAST LEGISLATIVE SESSION.
WITH SB 2 COMING INTO PLAY, IT DOES NOT AFFECT THE DEBT SERVICE TAX RATE BUT IT CLEARLY AFFECTS THE OPERATING SIDE OF THE BUDGET, SO THAT CREATES CHALLENGES FOR US.
BECAUSE I THINK MANY TIMES WHEN I HAVE CONVERSATIONS ABOUT OUR BOND RATING, IT TENDS TO FOCUS ON, WELL, YOU HAVE A DEBT SERVICE TAX RATE AND YOU HAVE A BOND PROGRAM, AND WHAT YOU DO ON THE OPERATING SIDE DOESN'T MATTER.
AND IF YOU LOOK AT THE RATING METHODOLOGIES AND HOW THEY ASSESS THOSE, THEY ASSESS EVERYTHING.
THEY'RE REALLY LOOKING AT HOW WE AS AN ORGANIZATION ARE HELPING OUR COMMUNITY THRIVE, AND WHILE WE DON'T VIEW OURSELVES AS PRIVATE SECTOR EMPLOYERS WHERE YOU'RE IN COMPETITION, BUT, IN FACT, YOU'RE IN COMPETITION WITH OTHER CITIES.
AND YOU WANT TO HAVE A LONG-TERM THRIVING CITY THAT SUPPORTS GROWTH, THAT YOU CAN SUPPORT A STRONG QUALITY OF LIFE, SO THOSE THINGS THAT WE DEALT WITH COMING OFF THE LEGISLATURE THAT IMPACT THE OPERATING SIDE, PUT PRESSURE ON THE RATING AS WELL.
THEY CLEARCALLY PUT PRESSURE ON THE RATING.
IN TERMS OF THE FUTURE AND WHAT IT LOOKS LIKE, WE GAVE YOU AN IDEA OF WHAT 2022 AND 2027 WILL LOOK LIKE.
WE BUILD BOND PROGRAMS EVERY FIVE YEARS.
I WILL TELL YOU WE WILL GET TO 2021 AND WE'LL GIVE YOU A BETTER PICTURE OF WHAT THAT LOOKS LIKE.
THE ONE THING THAT WE'RE CONCERNED ABOUT THAT WE CONTINUE TO LOOK AT AND WE'RE TRYING TO MAKE SURE WE MANAGE FLEXIBILITY WITHIN THIS PROGRAM IS YOU PROBABLY SAW LAST WEEK A LOT OF TALK ABOUT RECESSION, GLOBAL RECESSION, WE PRICED ON TUESDAY OF LAST WEEK.
ON WEDNESDAY, THE YOU'LL CURVE WAS ACTUALLY INVERTED, WHICH MEANS THAT WHICH MEANS THAT INTEREST RATES WERE SIGNALING WE'RE APPROACHING A FISCAL RECESSION.
GIVEN ALREADY OUR CHALLENGES WE'RE COMING OFF OF THE LAST LEGISLATIVE SESSION WITH THE POTENTIAL FOR RECESSION, THAT'S CERTAINLY SOMETHING WE WANT TO WATCH CLOSELY, BUT WE CONTINUE TO TRY TO BUILD THE PROGRAM HERE THAT GIVES US SOME FLEXIBILITY TO ADJUST.
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KEEP UP THE GREAT WORK.COUNCILMEMBE R CABELLO HAVRDA.
WILL YOU EXPLAIN THE LONG-TERM IMPACT OUR CURRENT BUDGET CHALLENGES WILL HAVE ON OUR DEBT SERVICE PLAN?MAY HAVE.
>> GORZELL: I THINK THEY WILL DEFINITELY HAVE AN IMPACT.
AS I MENTIONED COMING OFF OF THE LEGISLATIVE SESSION, MOST OF THAT IS GOING TO IMPACT THE OPERATING SIDE OF THE EQUATION AND THE GENERAL FUND, BUT WHEN WE LOOK AT OUR BOND PROGRAMS, MANY OF THE BOND PROGRAMS ALSO HAVE OPERATIONAL COMPONENTS TO THEM, SO WHEN WE OPEN NEW SENIOR CENTERS AND WE OPEN NEW PARKS, WE HAVE TO ADD STAFFING OR SUPPORT SERVICES AROUND THAT.
THE MORE CONSTRAINT THE OPERATING SIDE IS, THE MORE CHALLENGING THAT BECOMES ON THE BOND FUND SIDE AS WELL, FOR US TO CONTINUE TO ADD PROJECTS THAT WE KNOW ARE GOING TO ADD PRESSURE ON THE OPERATING SIDE AS WELL.
SO THAT'S GOING TO BE ONE OF OUR CHALLENGES GOING FORWARD IS MAKING SURE WE STRIKE A BALANCE, AND THAT WE'RE BEING VERY DELIBERATE ABOUT HOW WE FORECAST THOSE, MAKING SURE WE HAVE THE APPROPRIATE INFORMATION FOR YOU-ALL SO THAT WE CAN MAKE THOSE DECISIONS GOING FORWARD.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER.
>> SANDOVAL: THANK YOU, MAYOR.
THANK YOU, BEN, FOR THE PRESENTATION.
IT WAS VERY CLEAR AND I APPRECIATE GOING THROUGH ALL THAT BACKGROUND ON THIS.
MY QUESTION HAS TO DO WITH THE -- HOW WE PAY BACK THE GENERAL OBLIGATIONS.
YOU KNOW, WHEN THE DRAFT BUDGET WAS PRESENTED AND WE TALKED ABOUT HOUSING, THERE WAS SOME TALK ABOUT USING SOME MONEY FROM TIRZ TO PAY FOR HOUSING.
SO I'M -- I'M JUST WONDERING WHERE THE TIRZ PAYMENTS FIT INTO ALL OF THIS? ARE THEY PART OF THE LEGAL CAPACITY, OR...
>> GORZELL: SO IN THIS CASE, YOU'RE REFERRING TO THE TIRZ FUNDING THAT'S BEEN INCLUDED IN THE PROPOSED BUDGET?
>> GORZELL: SO TODAY WE DON'T HAVE ANY DEBT -- I TAKE THAT BACK.
WE DO HAVE A LITTLE BIT OF DEBT OUTSTANDING WHERE WE'RE USING TIRZ TO REPAY IT.
BUT GENERALLY THE TIRZ ARE PAY-AS-YOU-GO PROJECTS, SO WE ENTER AGREEMENTS WITH DEVELOPERS.
AS MONEY COMES INTO THE TIRZ, WE -- WE FUND PUBLIC INFRASTRUCTURE THAT WAY.
THE ONLY ONE THAT I CAN THINK OF THAT WE'VE GOT SOME DEBT OUTSTANDING ON IS RELATED TO BROOKS, WHERE WE HAVE WORKED WITH BROOKS AND WE HAVE ISSUED SOME CERTIFICATES OF OBLIGATION TO FUND ROAD IMPROVEMENT PROJECTS ON THE BASE, OR ON BROOKS.
AND THEN WE HAVE USED THE TIRZ REVENUES FROM THE BROOKS TO ACTUALLY PAY FOR THAT DEBT.
IT WOULD ACTUALLY SHOW UP IN THAT SELF-SUPPORTING CATEGORY ON SLIDE 15, THAT VERY TOP BLOCK, LIGHT TAN, IT WOULD BE INCLUDED THERE.
BUT THAT IS THE ONLY ONE FROM A TIRZ PERSPECTIVE WHERE WE ACTUALLY HAVE DEBT ASSIGNED -- WHERE WE'RE ACTUALLY USING TIRZ REVENUE TO PAY FOR DEBT.
>> MAYOR NIRENBERG: THAW COUNCILMEN SANDOVAL.
I'D LIKE TO ASK HOW MUCH DOES OUR 21 CENTS ON $100 BRING IN FOR OUR BOND CAPACITY YEAR? HOW MUCH MONEY WILL THAT BRING IN FOR US IN THIS COMING YEAR?
>> GORZELL: GIVE ME JUST A SECOND.
>> COURAGE: YOU DIDN'T HAVE THAT ONE OFF THE TOP OF YOUR HEAD.
>> GORZELL: I WAS GOING TO BALLPARK IT, BUT I BETTER NOT BALLPARK IT.
NOW, HOW WILL THAT BE ALLOCATED RIGHT NOW?
>> GORZELL: I'M NOT SURE -- IN TERMS OF -- WHEN YOU SAY "ALLOCATED," WHAT DO YOU MEAN --
>> COURAGE: WELL, FOR EXAMPLE, HOW MUCH OF THAT DO WE KNOW THAT IS GOING TO PAY BOND DEBTEDNESS THIS YEAR?
>> GORZELL: OUR BOND PAYMENT THIS YEAR IS ABOUT $250 MILLION.
>> COURAGE: SO WE'LL BE PAYING MORE IN BOND INDEBTEDNESS THAN WE'RE BRINGING IN THIS YEAR.
>> COURAGE: WHICH I GUESS MEANS WE HAVE A RESERVE LEFT OVER.
>> GORZELL: WE HAVE A LITTLE BIT OVER A FUND BALANCE BUT WE HAVE OTHER REVENUE SOURCES COMING IN.
I MENTIONED PARKING REVENUES, FOR EXAMPLE, DEVELOPMENT SERVICES WHERE WE'RE ISSUING SOME BONDS FOR THAT SYSTEM THAT THEY'RE PUTTING IN PLACE.
BUT THE DSD REVENUES WILL PAY FOR IT.
ALL OF THOSE REVENUES WILL PAY FOR IT, PLUS THE PROPERTY TAX PAYMENT WILL ALLOW US TO PAY FOR OUR DEBT SERVICE.
>> COURAGE: YOU SAID WE HAVE A LITTLE BIT OF A RESERVE.
>> GORZELL: WE TARGET ABOUT A 30, $35 MILLION FUND BALANCE WITHIN THIS PROGRAM AND THAT'S ONE OF THINGS WE USE TO HELP US MANAGE SOME OF THE UPS AND DOWNS AS IT RELATES TO THE
[00:30:01]
ECONOMY.>> COURAGE: HOW CAN THAT MONEY BE USED.
>> GORZELL: CAN ONLY BE USED SINCE IT'S ASSESS AS PART OF THE INTEREST AND SINKING POINT TAX RATE, IT HAS TO BE USED TO SUPPORT DEBT SERVICE.
WE MENTIONED A MINUTE OR TWO AGO ABOUT SOME FUNDING THAT WE'RE GOING TO BE REIMBURSING TO BROOKS.
LET ME SEE IF I CAN FIND IT AGAIN HERE IN MY NOTES.
IT WAS ON THE LAST PAGE, IT SAID THAT WE WERE GOING TO BE REIMBURSING BROOKS $6 MILLION FOR BUILDING RENOVATIONS; IS THAT RIGHT.
>> COURAGE: WHAT BUILDINGS WERE THOSE THAT WERE RENOVATED, DO YOU KNOW?
>> GORZELL: I DON'T RECALL THE SPECIFIC BUILDINGS BUT IT WAS RELATED TO AN ECONOMIC DEVELOPMENT DEAL THAT WE DID.
IT -- IS ALEX HERE, MAYBE SHE COULD HELP ME?
>> COURAGE: I GUESS IF WE HAD MADE ARRANGEMENTS WITH BROOKS AS PART OF AN ECONOMIC DEVELOPMENT DEAL TO PAY FOR CONSTRUCTION OR SOMETHING, I UNDERSTAND THAT.
I WAS JUST WONDERING WHY, YOU KNOW, BROOKS ISN'T USING THEIR OWN MONEY, BUT IF IT WAS PART OF A SPECIAL ECONOMIC DEVELOPMENT ARRANGEMENT WE HAD MADE.
>> GORZELL: IT WAS PART OF AN ECONOMIC DEVELOPMENT AGREEMENT AND WE'RE USING THE TIRZ, WE'RE USING THE BROOKS TIRZ TO ACTUALLY REPAY FOR THE DEBT.
SO IT'S NOT OUT OF OUR NORMAL DEBT, IT'S OUT OF THE TIRZ.
>> GORZELL: YEAH, IT'S NOT OUR PROPERTY TAX DEBT CAPACITY, IT'S ONE OF THOSE SITUATIONS WHERE WE'RE USING OUR ABILITY TO LOWER -- TO ISSUE AT A LOWER COST.
>> GORZELL: AND THEN WE'RE GOING TO USE THE TIRZ REVENUES TO PAY FOR THAT 6 MILLION.
>> COURAGE: IT WOULD HAVE BEEN GOOD IF YOU COULD PUT THAT IN THERE, A LITTLE ANNOTATION THAT THAT'S WHERE THAT CAME FROM.
>> COURAGE: WE TALKED ABOUT CONVENTION CENTER AND ALAMODOME IMPROVEMENTS.
JUST COMING UP THIS NEXT YEAR, WHAT ARE THE LONG-TERM EXPECTATIONS FOR IMPROVEMENTS THAT WE'RE GOING TO BE LOOKING AT AT THE CONVENTION CENTER AND THE ALAMODOME? I THINK I'VE HEARD SOME FIGURES.
WHAT DO YOU THINK WE'RE LOOKING AT?
>> GORZELL: WELL, I THINK, COUNCILMEN, THAT'S PART OF THE WORK WE NEED TO DO IS TO WORK THROUGH THAT.
YOU SAW IN THE PROPOSED BUDGET, I THINK IT WAS IN THE TCI PRESENTATION YESTERDAY, WE'RE WORKING ON THE ROOF REPLACEMENT AT THE CONVENTION CENTER.
A BIG PORTION OF THAT WILL BE COVERED BY INSURANCE PROCEEDS, RETRACTABLE SEATING OUT AT THE ALAMODOME WAS ANOTHER LARGE CIP --
>> VILLAGOMEZ: IT'S $21.5 MILLION.
>> GORZELL: $21.5 MILLION IN NEXT YEAR'S BUDGET, BUT IN ADDITION TO THAT, WE ASKED THEM TO LOOK AT ALL OF THE MAJOR EQUIPMENT WITHIN THOSE BUILDINGS AND LOOK AT WHEN THOSE NEED TO BE REPLACED, WHEN WE NEED TO DO UPGRADES, ESCALATORS, ELEVATORS.
THAT'S THE PROGRAM THAT WE'RE BUILDING.
WE ALSO MADE SOME COMMITMENTS TO THE NCAA IN TERMS OF SOME IMPROVEMENTS THAT WE WOULD MAKE AT THE DOME, SO THAT'S THE WHOLE PROGRAM THAT WE'RE GOING TO UT P TOGETHER.
WHEN I SAY SPRING OF 2020, I DON'T THINK WE'RE GOING TO ISSUE BY SPRING OF 2020.
I THINK WE'LL HAVE MANY MORE CONVERSATIONS WITH YOU ALL BETWEEN NOW AND THEN, BUT CERTAINLY IN THE SPRING WOULD GIVE YOU AN UPDATE IN TERMS OF WHAT THAT LOOKS LIKE.
>> COURAGE: SO WE WON'T BE DOING TOO MUCH OF THAT BONDED INDEBTEDNESS RIGHT NOW FOR THOSE LONGER TERM PROJECTS, RIGHT?
>> GORZELL: I DON'T THINK SO BASED ON WHAT I'VE SEEN SO FAR, BUT WE'RE GOING TO WORK OUR WAY THROUGH AN UPDATED PRO FORMA, SO WE'RE LOOKING AT THE WHOLE HOT PRO FORMA.
I MENTIONED WE'VE GOT ABOUT $544 MILLION IN BONDS OUTSTANDING CURRENTLY.
WE RUN A HOT PRO FORMA THAT GOES OUT 25 OR 30 YEARS.
WE'RE GOING TO LOOK AT THE NEEDS OF BOTH BUILDINGS, PRIORITIZE THE NEEDS OF BOTH BUILDINGS, UPDATE THAT PRO FORMA AND THEN WE'LL CERTAINLY COME BACK AND VISIT WITH YOU MORE ABOUT THAT.
>> COURAGE: I GUESS YOU SAID WE HAVE 30, $35 MILLION IN RESERVES THAT WE CAN USE IF SOMETHING MIGHT COME UP, BASED ON WHAT WE MIGHT BRING IN, 32 MILLION AND MAYBE ANOTHER 30 TO $35 MILLION THAT WE MAY BE HOLDING IN RESERVE FOR PRIOR YEARS, WHAT DOES THAT GIVE US IN TOTAL BOND CAPACITY FOR NEXT YEAR, SHOULD WE NEED TO SPEND THAT MUCH? COULD WE BORROW A BILLION ON THAT OR 500 MILLION ON THAT OR -- YOU KNOW, KNOWING THAT WE HAVE TO PAY DEBT SERVICE AND THINGS LIKE THAT? I'M JUST WONDERING WHAT IS OUR TOTAL BOND DEBT CAPACITY WITH WHAT WE'VE GOT AVAILABLE.
>> GORZELL: SO THIS PICTURE IS THE UPDATED PROPERTY TAX DEBT PLAN.
SO THE CONVENTION CENTER/ALAMODOME, WILL BE DONE SEPARATELY OUT OF THE HOT PRO FORMA, SO WE'RE USING THE HOT REVENUES TO PAY FOR THAT.
BUT WHEN YOU TALK ABOUT OUR PROPERTY TAX DEBT CAPACITY, THIS IS WHAT OUR CAPACITY LOOKS LIKE RIGHT NOW.
THE CAPACITY WITHIN THE BOND PROGRAM FOR 2020 HAS BEEN ALLOCATED AS PART OF THE CAPITAL IMPROVEMENT PROGRAM.
SO WHEN WE GO THROUGH THIS AGAIN NEXT YEAR, WE'LL UPDATE IT.
AND THEN WE'LL SEE IF THAT FREES UP ADDITIONAL CAPACITY THAT YOU COULD THEN USE FOR ADDITIONAL PROJECTS.
[00:35:02]
WE ALSO LOOK AT -- YOU SEE THOSE BIG BOND PROGRAMS IN '22 AND '27, WE'RE BUILDING IN BOND AUTHORIZATIONS EVERY FIVE YEARS SO THAT YOU ALL AS A COUNCIL OR GOVERNING BODY HAVE THE OPTION TO GO OUT TO VOTERS AND ASK FOR A BOND PROGRAM.THAT WILL GET SIZED MORE PRECISELY AS WE GET CLOSE TO IT.
OUR GOAL HAS BEEN TO TRY TO INCREASE THAT A LITTLE BIT.
RIGHT NOW IT'S SITTING AT 950 MILLION FOR 2022.
BUT THIS CAPACITY NUMBER CHANGES AT LEAST ONCE A YEAR, SOMETIMES MORE THAN ONCE A YEAR, DEPENDING UPON IF WE'RE DOING FINANCINGS OR NOT.
I KNOW YOU MENTIONED THAT FOR FROST TOWER RENOVATIONS, A LOT OF THAT IS GOING TO BE BREAK-EVEN TO THE CITY.
WHAT IS THE LATEST ESTIMATE ON THAT COST NOW?
>> GORZELL: DO YOU REMEMBER THE --
>> COURAGE: THE FROST TOWER RENOVATIONS?
>> VILLAGOMEZ: COUNCILMAN, WHEN WE DO THE ADMINISTRATION OF THE CITY, THAT BUDGET WORK SESSION, WE'RE GOING TO GO OVER THAT PARTICULAR PROJECT.
I DON'T HAVE THE NUMBER WITH ME TO ANSWER YOUR QUESTION, BUT WE HAVE A SESSION DEDICATED TO BE ABLE TO GO OVER THE CITY TOWER PROJECT, THE COST ASSOCIATED WITH RUNNING IT, OPERATING COSTS, AND ALSO THE DEBT SERVICE AS WELL.
>> COURAGE: SO I'LL HAVE TO WAIT UNTIL THAT MEETING TO FIND OUT?
>> GORZELL: WE CAN GET YOU AN UPDATE.
I DON'T HAVE THE NUMBERS WITH ME EITHER IN TERMS OF A BREAKDOWN ON DETAIL.
I'LL TELL YOU THAT WE HAVE $47 MILLION THAT'S IN THAT SELF-SUPPORTING CATEGORY, THE 47 MILLION WAS WHAT WE ISSUED TO ACTUALLY ACQUIRE THE BUILDING FROM FROST.
THAT IS COMING DUE IN FEBRUARY.
WE'RE GOING TO BE TALKING TO THE BANK ABOUT PROBABLY LIKE A SIX-MONTH EXTENSION.
WE'D LIKE TO DO ONE FINANCING WHERE WE REFINANCE THE $47 MILLION THAT WE ISSUED TO BUY THE BUILDING, PLUS FUND OUR RENOVATIONS FOR THE BUILDING.
>> COURAGE: I'M JUST TRYING TO SEE IF WE'RE RUNNING HIGHER THAN A FIGURE I THINK I RECALL LIKE $71 MILLION FOREIGN NOVATING.
>> GORZELL: I NEED TO GO BACK AND LOOK, COUNCILMAN.
I DON'T RECALL OFF THE TOP OF MY HEAD, BUT I CAN CERTAINLY GET THAT INFORMATION.
>> COURAGE: WELL, IF YOU CAN GET THAT INFORMATION, I APPRECIATE IT.
>> COURAGE: MAYOR, THAT ENDS THE QUESTIONS I HAVE.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER COURAGE.
I DO HAVE A COUPLE OF QUESTIONS FOR YOU HERE.
YOU HAVE ON SLIDE NUMBER SIX OUR TOTAL OUTSTANDING DEBT IS 3.1 BILLION.
AND -- BUT ON SLIDE NUMBER 10, YOU SHOW 1.88 OUTSTANDING DEBT.
WHAT -- WHERE IS THE -- EXPLAIN THAT DIFFERENCE.
SO THE -- ON SLIDE NUMBER SIX, THAT IS OUR TOTAL OUTSTANDING DEBT, WHICH IS SUMMARIZED ON SLIDE SEVEN, SO THAT'S ALL OF OUR OUTSTANDING DEBT WHICH INCLUDES PROPERTY TAX SUPPORTED DEBT, THAT FIRST LINE OF ABOUT 2 BILLION, THEN YOU HAVE ALL OF OUR OTHER ISSUANCES, AIRPORTS, ALL OF THEM LISTED THERE FOR A TOTAL OF 3.1.
WHEN WE LOOK AT OUR LEGAL LIMIT, THAT ONLY APPLIES TO THE PROPERTY TAX SUPPORTED DEBT OF $2 BILLION.
IT 1.8 BILLION ON SLIDE 10 BECAUSE WE ADJUST FOR ANY SELF-SUPPORTING DEBT THAT WE HAVE.
SO IF WE'RE ISSUING BONDS THAT HAVE A PROPERTY TAX PLEDGE ON IT BUT WE'RE USING OTHER REVENUES TO PAY FOR IT, PARKING REVENUES OR WHATEVER THAT MIGHT LOOK LIKE, THEN WE BACK OUT OF THAT TOTAL WHEN WE COMPARE THAT FOR OUR LEGAL LIMIT.
IT'S JUST THAT THE -- YOU KNOW, PERCEPTION BETWEEN THOSE TWO SLIDES ARE -- YOU KNOW, WE HAVE MORE THAN $1.8 BILLION WORTH OF DEBT.
>> PERRY: THAT'S TOTALED UP ON 6 AND 7, BUT WHAT YOU ACTUALLY COMPARE TO THE LEGAL DEBT LIMIT IS A DIFFERENT NUMBER.
AND I REALLY LIKE THE SLIDE SHOWING THE COMPARISONS TO OTHER CITIES.
IN FACT, THAT WAS A NOTE I'D PUT DOWN RIGHT NOW IS BENCHMARKING AGAINST OTHER CITIES.
AND WE'RE DOWN ON THE LOWER END, WHICH IS GREAT, BUT WHAT -- HAVE WE EVER CALLED ARLINGTON OR FORT WORTH AND FOUND OUT HOW ARE THEY GETTING -- HOW ARE THEY DOING IT BETTER THAN US? I MEAN, THAT'S WHAT BENCHMARKING IS ALL ABOUT, IS TRYING TO LEARN BEST PRACTICES, THAT KIND OF THING.
>> GORZELL: YOU KNOW, I WILL TELL YOU THAT I THINK -- ONE OF THE CHALLENGES WHEN YOU START TO DO THESE COMPARISONS IS I THINK EVERY COMMUNITY IN SOME RESPECTS IS A LITTLE BIT UNIQUE, RIGHT.
>> GORZELL: OUR TAXABLE ASSESSED VALUATIONS LOOK DIFFERENT, OUR TAX RATES LOOK DIFFERENT AND OUR NEEDS LOOK DIFFERENT, SO AT THE END OF THE DAY, WHAT WE TRY DO IS JUST MAKE SURE WE'RE DEVELOPING A PROGRAM THAT IS FISCALLY DISCIPLINED, IT'S PRUDENT, AND MAKES SENSE FOR US.
I THINK BY VIRTUE OF OUR VERY STRONG BOND RATINGS, I THINK WE'VE DONE A GOOD JOB OF THAT ON THE PROPERTY TAX SIDE, BUT
[00:40:01]
I WOULD SAY THAT THE COMPARISON WHEN YOU START LOOKING AT DEBT GETS KIND OF TOUGH.A FEW YEARS AGO THE COMPTROLLER -- PREVIOUS COMPTROLLER TRIED TO DO THAT WITH TOTAL DEBT, NOT JUST PROPERTY TAX SUPPORTED DEBT, AND IT WAS REALLY CONFUSING.
I'LL GIVE YOU EXAMPLES OF THAT.
YOU REALLY CAN'T COMPARE OUR AIRPORT DEBT, OUR FUNCTION OF OUR TOTAL DEBT, OUR AIRPORT, VERSUS DFW.
DFW HAS A LOT MORE DEBT OUTSTANDING THAN WE WOULD, THAT DOESN'T MEAN THEY'RE WORSE THAN WE ARE, IT DOESN'T MEAN WE'RE BETTER THAN THEY ARE, IT JUST MEANS WE'RE DIFFERENT.
WE OWN UTILITIES, SOME OF THE OTHER CITIES DON'T.
ANY TIME YOU GET INTO THE COMPARISONS, IT GETS A LITTLE MORE CHALLENGING.
>> PERRY: YEAH, AND I TOTALLY UNDERSTAND THAT.
BUT I WOULD STILL THINK THAT SOMEONE MIGHT GIVE THEM A CALL TO SEE IF THEY HAVE ANY UNIQUE WAYS OF ACCOUNTING OR HOW YOU -- HOW YOU PUT THESE NUMBERS TOGETHER OR, YOU KNOW, THE TAXING, YOU KNOW, WHAT ARE THEY DOING THAT PUTS THEM AHEAD OF US IN THAT.
SO JUST A RECOMMENDATION ON THAT.
>> GORZELL: WE'LL LOOK AT THAT.
>> PERRY: ON PAGE 15, YOU'RE -- I'M CURIOUS, AGAIN, WHY DO YOU HAVE THAT IN 2022 AND 2027?
>> GORZELL: SO, ONE OF THE THINGS THAT WE DO WHEN WE'RE DEVELOPING THE BOND PROGRAM IS WE ARE -- TAX RATE OF 21 CENTS, BUT WE'RE ALSO MAKING SURE THAT WE CAN HAVE A SUSTAINED CAPITAL INVESTMENT.
SO WE'RE NOT PUTTING OURSELVES IN A POSITION WHERE WE ALL OF A SUDDEN HAVE A VERY LARGE BOND PROGRAM, BUT THEN YOU CAN'T DO ANYTHING FOR 10, 15, 20 YEARS BECAUSE I'VE LEVERAGED ALL OF THE CAPACITY, WHICH IS PROBABLY NOT A FISCALLY PRUDENT THING TO DO EITHER.
THIS REALLY PUTS YOU IN A POSITION WHERE WE'VE SAID FROM A POLICY PERSPECTIVE, WE'RE GOING TO TRY TO BUILD IN BOND PROGRAMS EVERY FIVE YEARS SO WE CAN MAINTAIN THAT SUSTAINED CAPITAL INVESTMENT IN THE COMMUNITY, PARTICULARLY AS NEEDS CHANGE.
IT CERTAINLY DOESN'T OBLIGATE YOU TO DO ANYTHING IN 2022, BUT IT'S YOUR OPTION AS A GOVERNING BODY THAT YOU WOULD HAVE THE ABILITY TO CALL ON AN ELECTION IN MAY OF 2022, AND, AGAIN, WE'LL BE SIZING THAT AS WE GET CLOSER IF THAT'S SOMETHING YOU ALL WANT TO PURSUE.
>> PERRY: AND THAT GOES TO MY POINT ON SLIDE NUMBER 10 WHERE YOU'RE SHOWING 1.8 BILLION COMPARED TO THE LEGAL LIMIT OF 13.8 BILLION, JUST BECAUSE WE HAVE -- WE CAN GO UP HIGHER DOESN'T MEAN THAT WE SHOULD.
AND EVEN THOUGH IT'S YOUR WOND WOND -- BOND PROGRAM, YEP, THAT'S WHAT WE COULD DO, BUT THAT DOESN'T MEAN WE NECESSARILY HAVE TO DO THAT.
WHAT I'M LOOKING AT IS -- POSSIBLE HERE FOR OUR RESIDENTS. WE KEEP HEARING ABOUT THIS BEING THE MOST ECONOMICALLY SEGREGATED COMMUNITY.
WE NEED TO KEEP THAT IN MIND WHEN WE'RE LOOKING AT THOSE PROPERTY TAX RATES, YOU KNOW, HOW MUCH WE'RE ACTUALLY CHARGING FOLKS TO LIVE HERE IN SAN ANTONIO.
AND TRYING TO KEEP IT AFFORDABLE ALL THE WAY THROUGH AFFORDABLE HOUSING, EVERYTHING ASSOCIATED WITH THAT.
SO JUST BECAUSE IT'S UP THERE, LET'S NOT -- LET'S KEEP IT DOWN LOW HERE FOR OUR RESIDENTS IN SAN ANTONIO.
SO I APPRECIATE WHAT YOU'RE SHOWING THERE, BUT, YOU KNOW, I DON'T WANT TO PUT ANYTHING OUT THERE THAT SAYS, YEAH, WE'RE ALREADY PLANNING OVER A BILLION DOLLARS IN 2022.
I -- TO ME, THAT'S PUTTING SOMETHING OUT THERE THAT WE -- NOTHING IS COALESCEDDALITY THIS POINT IN TIME, -- COALESCED AT THIS POINT IN TIME, EVEN THOUGH IT'S WHAT OUR CAPACITY IS, I UNDERSTAND THAT, BUT THIS COULD START WORRYING FOLKS, HEY, WE'RE TAKING ON MORE DEBT.
YOU KNOW, THIS IS MORE THAN WHAT WE CAN AFFORD.
YOU UNDERSTAND WHAT I'M SAYING?
LET ME CLARIFY A COUPLE OF THINGS, JUST TO MAKE SURE THEY'RE CLEAR.
>> GORZELL: WHEN WE TALK ABOUT SLIDE 10, I SHOWED YOU THE LEGAL LIMITS BECAUSE THOSE OFTEN COME UP.
YOU KNOW, WHAT CAN YOU LEGALLY DO AS AN ENTITY.
WE'RE AT 15% OF OUR LEGAL CAPACITY FROM AN ASSESSED VALUATION PERSPECTIVE. WE'RE AT 21 CENTS ON A TAX RATE.
WE'RE NOWHERE NEAR EITHER OF THOSE.
SO REALLY OUR CONSTRAINTS ARE A FISCAL ONE, AND WHAT IS OUR FISCAL CAPACITY? AND WHAT I'VE SHOWN YOU ON SLIDE 15 IS A PROGRAM THAT'S BUILT AROUND THAT 21 CENT TAX RATE, SO I'M NOT MAKING ANY ASSUMPTION ABOUT THAT GOING UP. IT'S A STRONG PROGRAM THAT I BELIEVE HAS THE SAME FUNDAMENTAL AS ASSUMPTIONS THAT ALLOWED US TO ACHIEVE A AAA RATING AND HAVE ALLOWED US TO MAINTAIN A AAA RATING, SO WE'RE NOT DOING ANYTHING OUT HERE THAT -- WHAT'S THE RIGHT WORD, IN MY OPINION OVERLEVERAGES THE CITY OR PUTS THE CITY IN A BAD POSITION.
BUT TO YOUR POINT, THIS -- AFTER 2017, WHAT YOU SEE IN '22 AND '27 IS CLEARLY A POLICY ISSUE FOR YOU-ALL.
[00:45:03]
>> GORZELL: I'M JUST SHOWING YOU CAPACITY THAT COULD POTENTIALLY BE THERE, AND I WOULD CAUTION YOU ALSO ON '22, IS THAT AS WE GET TO THE SUMMER OF 2021, THAT IS WHEN WE WILL START SHARING WITH THE COUNCIL WHAT WE THINK THE SIZING FOR 2022 COULD LOOK LIKE, AND THEN AT THAT POINT IT'S A POLICY ISSUE FOR YOU-ALL IN TERMS OF DO YOU WANT TO MOVE FORWARD WITH THAT CAPACITY, DO YOU WANT TO DO SOMETHING DIFFERENT, SOMETHING LESS? YOU KNOW, THOSE ARE CERTAINLY ALL OF THE OPTIONS THAT YOU ALL HAVE AVAILABLE TO YOU.
AND MAYBE JUST FOR, YOU KNOW, ANYBODY FLIPPING THROUGH THESE SLIDES OUT THERE IN THE COMMUNITY, JUST AN ASTERISK ON THOSE SAYING POTENTIAL.
YOU KNOW, THAT THIS IS POTENTIAL FUNDING FOR BONDS, IF NEEDED.
ON SLIDE 16, I ALSO HAD SOME QUESTIONS ABOUT THAT.
YOU KNOW, WE JUST -- HOW MUCH DID WE JUST STICK INTO THE DOME? DIDN'T WE JUST COMPLETE A PROJECT OVER THERE, 60 MILLION OR SOMETHING LIKE THAT?
>> GORZELL: I THINK IT WAS AROUND 45 MILLION, SOMETHING LIKE THAT.
IT WAS AROUND 45, BUT IT WAS TO EXPAND THE CONCOURSES.
>> GORZELL: AND THAT WAS SELF-SUPPORTING AS WELL.
WE USED PARKING REVENUES AND ONE OTHER SOURCE FROM THE DOME IN ORDER TO RETIRE THAT DEBT.
SO WE'RE NOT USING PROPERTY TAXES TO DO THAT.
>> PERRY: PARKING REVENUES, YEP, YEP.
WE RAISED THE PARKING FEE OVER THERE AGAIN AND TICKET PRICES, I UNDERSTAND THAT.
BUT I GUESS I WOULD REALLY LIKE TO SEE, OKAY, WHAT ARE THESE FUTURE OPPORTUNITIES -- AND THEY'RE NOT THAT FUTURE, YOU'RE TALKING ABOUT THIS NEXT SPRING, THAT'S NOT THAT FAR AWAY, I'D LIKE TO SEE WHAT WE'RE PLANNING ON THE CONVENTION CENTER, WHICH IS RELATIVELY NEW, THE ALAMODOME, WE JUST FINISHED THAT BIG PROJECT OVER THERE, AND THEN, YEAH, SOMEBODY COME IN, EXPLAIN TO ME WHAT THESE PROJECTS ARE THAT WE'RE LOOKING AT IN THE SPRING.
FROST TOWER, YOU MADE A COMMENT THAT THIS IS GOING TO BE A COST NEUTRAL PROJECT.
>> PERRY: WELL, HERE A FEW YEARS AGO WHEN THIS FIRST WAS PITCHED, WE WERE GOING TO BE SAVING A LITTLE OVER A MILLION DOLLARS OUT OF THAT, AND WHERE -- $1.2 MILLION TO THE CITY BUDGET OVER 30 YEARS.
WHERE DID THAT 1.2 MILLION GO?
>> GORZELL: COUNCILMAN, THAT PRO FORMA, WE CONTINUE TO UPDATE.
IT'S PROBABLY FLUCTUATE ANYWHERE FROM 1.2 POSITIVE TO AROUND $3 MILLION POSITIVE, BUT WHEN WE'RE RUNNING THE 30-YEAR PRO FORMA, EVERY TIME WE CHANGE A LITTLE ASSUMPTION, THAT KIND OF COMPOUNDS OVER THAT 30-YEAR PERIOD.
WE'LL GIVE YOU AN UPDATE AS PART OF THAT BUDGET WORK SESSION.
WHEN I SAY COST NEUTRAL, OUR COMMITMENT HAS BEEN TO MAKE SURE IT'S A MINIMUM OF AT LEAST COST NEUTRAL.
IT COULD ACTUALLY BE A LITTLE BIT BETTER THAN THAT, BUT WE'RE RUNNING THOSE UPDATES NOW, AND OUR INTENT IS TO ENSURE THAT THAT PROJECT PAYS FOR ITSELF.
>> PERRY: YEAH, WELL, YOU KNOW, AGAIN, THIS WAS SOLD TO THE COUNCIL AS A MONEY-SAVING PROJECT.
AND I WOULD HOPE THAT WE STAY TRUE TO THAT ON THIS PROJECT; THAT IT IS GOING TO SAVE THE CITY MONEY.
AND BETTER THAN COST NEUTRAL, BECAUSE THAT'S -- THAT'S HOW IT WAS SOLD AT THE VERY BEGINNING.
SO I'D SURE LIKE TO SEE THAT UPDATE.
>> GORZELL: SURE, WE CAN SHOW YOU THAT UPDATE, AND I GUESS FROM A COST NEUTRAL PERSPECTIVE AND MAKING SURE ON THAT 1.2 MILLION, THAT WAS 1.2 MILLION CUMULATIVE OVER 30 YEARS.
>> GORZELL: SO WE'RE TALKING ABOUT A VERY SMALL -- PEREZ PRS I UNDERSTAND THAT --
AND THEN THE LAST NOTE ON THAT ONE I CERTIFICATES OF OBLIGATIONS.
I'VE BEEN VERY CRITICAL OF THAT BECAUSE ONE OF THE THINGS THAT I'M CONCERNED ABOUT IS, YOU KNOW, HEY, VOTERS DON'T HAVE TO APPROVE THAT.
AND WE HAVE SPENT SOME LARGE AMOUNTS OF MONEY ON CERTIFICATES OF OBLIGATION.
AND I WOULD -- I'M GOING TO CONTINUE TO BE VERY CRITICAL ON THOSE VERY LARGE PROJECTS THAT WE'RE AUTHORIZING OUTSIDE OF BONDS THAT DOES NOT GIVE THE -- OUR VOTERS AN OPPORTUNITY TO LOOK AT THAT AND VOTE ON IT.
AND, YOU KNOW, ONE OF THEM WAS THE BIG CITY HALL RENOVATION AND THE FROST TOWER AND ALL THAT STUFF COMBINED TOGETHER ON OVER $40 MILLION FOR THAT.
SO I JUST HOPE THAT WE CONTINUE TO USE CAUTION ON USING CERTIFICATES OF OBLIGATION IN THE FUTURE.
AND IF I CAN JUST SUMMARIZE FOR YOU, IN 2017, IN TERMS OF HOW WE TYPICALLY FUND C OF OS, I THINK IF YOU LOOK AT THE 2017 BLOCK, THERE'S $313 MILLION LISTED THERE.
55% OF THAT FUNDING WENT TOWARDS STREETS.
THAT INCLUDES OUR INFRASTRUCTURE MANAGEMENT PLAN, HELPING US ACHIEVE THE $110 MILLION PROGRAM THAT WE'VE PUT IN PLACE, BUT OTHER STREET PROJECTS THAT HAVE COME
[00:50:01]
UP DURING THE BUDGET PROCESSES THE LAST SEVERAL YEARS, WE'VE ADDED FUNDING THERE.ANOTHER ROUGHLY 18% IS OUR PUBLIC SAFETY RADIO SYSTEM.
AND SOME OF THAT FUNDING HAPPENED AS PART OF THE -- WHAT'S LISTED IN THE 2012 PROGRAM, BUT ALSO FOR OUR PUBLIC SAFETY PROGRAM, AND THEN YOU MENTIONED THE OTHER LARGE ONE IN THERE IS THAT 38 MILLION, AND THAT'S ABOUT 12%, IS CITY HALL.
BUT WHEN YOU LOOK AT STREETS AND JUST THE RADIO SYSTEM, PUBLIC SAFETY RADIO SYSTEM, WE'RE TALKING ABOUT, OH, PROBABLY 12, SIX... 72% OF THAT NUMBER.
SO WE'RE DOING PRETTY BASIC INFRASTRUCTURE-TYPE PROJECTS WITH THOSE, AND IT DOES GIVE YOU SOME FLEXIBILITYIN BETWEEN THE BOND PROGRAMS TO ACHIEVE THOSE PROJECTS.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMEN PERRY.
THANK YOU, BEN, FOR THE PRESENTATION.
FOR THE BENEFIT OF THE FOLKS IN THE AUDIENCE AND FOR MY COLLEAGUES AS WELL.
WE HAVE THREE DEPARTMENTS TO GET THROUGH TODAY AS WELL AS COUNCIL QUESTIONS.
WE ARE GOING TO RECESS -- WE'RE GOING TO ADJOURN THIS MEETING AT 4:45 P.M.
THAT'S AN HOUR AND 45 MINUTES FROM NOW, BECAUSE WE HAVE SOME IMPORTANT ITEMS IN EXEC TO GET THROUGH.
SO FOR OUR DEPARTMENTS, WE'RE GOING TO GO THROUGH EACH OF THE PRESENTATIONS, BE MINDFUL OF THE PACING, AND FOR MY COLLEAGUES, MAKE SURE TO GET TO THE POINT OF YOUR QUESTIONS, ASK THE MOST RELEVANT ONES.
ANYTHING ELSE CAN BE IN AN INDIVIDUAL BRIEFING, BUT BE MINDFUL OF THE FACT THAT WE HAVE 10 COLLEAGUES HERE THAT WANT TO ASK QUESTIONS, WE WANT TO GET THROUGH IT ALL BEFORE 4:45 WHEN WE BREAK FOR EXEC.
HE'LL COVER THE OFFICE OF SUSTAINABILITY.
SECOND UP WILL BE ALEX AND THE ECONOMIC DEVELOPMENT DEPARTMENT, AND THEN JOHN JACKS WILL BE PRESENTING THE CENTER CITY DEVELOPMENT OFFICE.
GOOD AFTERNOON, MAYOR, COUNCIL.
THANK YOU FOR THIS OPPORTUNITY TO PRESENT THIS BUDGET.
THE OFFICE SUSTAINABILITY MISSION IS ENHANCING THE ENVIRONMENT, QUALITY OF LIFE, ECONOMIC VITALITY OF OUR COMMUNITY THROUGH INNOVATIVE PROGRAMS AND POLICIES FOR ALL RESIDENTS AS WELL AS FUTURE GENERATIONS.
IT'S VERY ASPIRATIONAL, BUT IT'S A MISSION THAT WE DON'T TAKE LIGHTLY AND IT REQUIRES US TO BE INNOVATIVE AND COLLABORATIVE.
AND WE AS A DEPARTMENT ARE DRIVEN BY A PASSION TO MAKE SAN ANTONIO AND THIS WORLD A BETTER PLACE.
OUR PROPOSED FY 2020 BUDGET IS $2.7 MILLION.
AS YOU CAN SEE 1.4 MILLION COMES FROM THE ENERGY EFFICIENCY FUND AND 1.3 MILLION FROM THE SOLID WASTE FUND.
WE HAVE A TOTAL STAFF OF NINE INDIVIDUALS.
THE OFFICE OF SUSTAINABILITY ACCOMPLISHES OUR MISSION THROUGH FOUR FOCUS AREAS.
ENERGY MANAGEMENT FOCUSES ON REDUCING ENERGY CONSUMPTIONS IN CITY-OWNED FACILITIES.
MUNICIPAL SUSTAINABILITY FOCUSES ON OVERALL CITY OF SAN ANTONIO INTERNAL SUSTAINABILITY IN AREAS SUCH AS GREEN PURCHASING, WASTE REDUCTION AND FLEET EFFICIENCY.
SUSTAINABLE TRANSPORTATION WORKS ON IMPROVING EFFICIENCIES IN OUR TRANSPORTATION SECTOR AND COMMUNITY SUSTAINABILITY FOCUSES ON IMPROVING OUR COMMUNITY'S OVERALL SUSTAINABILITY AND RESILIENCE.
AND YOU CAN SEE, THAT SOME OF OUR CURRENT POLICY PRIORITIES ARE IN THE AREAS OF IMPLEMENTING THE SA TOMORROW'S SUSTAINABILITY PLAN, DEVELOPING THE CLIMATE ACTION AND ADAPTATION PLAN, ELECTRICAL VEHICLE PLANNING AND OVERSEEING OUR ENERGY EFFICIENCY FUND.
OUR BIG FOCUS THIS PAST YEAR HAS BEEN THE SA CLIMATE READY CLIMATE ACTION AND ADAPTATION PLAN.
AS I WILL BE BRIEFING YOU-ALL TOMORROW MORNING AT 9:00 A.M., I WON'T GO INTO A LOT OF DETAIL ON THIS SLIDE.
I THINK THE BIG THING JUST TO POINT OUT IS WE WILL BE PROPOSING RECOMMENDED COUNCIL CONSIDERATION OF THE UPDATED DRAFT PLAN IN OCTOBER -- OCTOBER 17TH OF THIS YEAR.
AS MENTIONED EARLIER, ONE OF OUR KEY SERVICE AREAS IS IN ENERGY MANAGEMENT.
THE ENERGY EFFICIENCY FUND WAS ESTABLISHED IN 2011 TO FOCUS ON PROBABILITIES TO REDUCE ENERGY CONSUMPTION IN CITY FACILITIES.
TO DATE, WE HAVE ACCOMPLISHED AND COMPLETED 409 ENERGY PROJECTS IN 187 MUNICIPAL FACILITIES, REDUCING ELECTRIC CONSUMPTION IN THOSE FACILITIES BY A TOTAL OF 16% AND PROVIDING $1.5 MILLION IN TOTAL AVOIDED COSTS, AND THOSE ARE COSTS THAT WE WOULD HAVE EXPERIENCED IF THE PROJECTS HAD NOT BEEN COMPLETED.
PROJECT TYPES ARE VARIOUS AND THEY INCLUDE INTERIOR AND EXTERIOR LIGHTING RETROFITS AS WELL AS HVAC EQUIPMENT AND CONTROL REPLACEMENTS AND UPGRADES.
THE OTHER MAJOR PROJECT THAT WE'VE BEEN WORKING ON IS THE AMERICAN CITY'S CLIMATE CHALLENGE WHICH CITY COUNCIL
[00:55:01]
AUTHORIZED THIS PAST JUNE.THIS CHALLENGE IS A BLOOMBERG PHILANTHROPIES FISHTIVE THAT AIMS -- INITIATIVE THAT AIMS TO ACCELERATE AND DEEPEN EFFORTS IN 39 CITIES ACROSS THE UNITED STATES TO CREATE THE GREATEST CLIMATE AND HEALTH IMPACTS IN 2020 AND SHOWCASE THESE BENEFITS.
AT THE END OF THE DAY, THIS IS REALLY ABOUT HIGHLIGHTING NOT JUST HEALTH, BUT GOOD JOBS AND COST SAVINGS.
OUR AREAS OF FOCUS ARE IN REDUCING EMISSIONS IN OUR BUILDING AND TRANSPORTATION SECTORS, WHICH TOGETHER COMBINE TO COVER 85% OF OUR OVERALL COMMUNITY'S EMISSIONS.
AND LOOKING AT VARIOUS POTENTIAL POLICIES SUCH AS PACE, PROPERTY ASSESSED CLEAN ENERGY, BUILDING ENERGY BENCHMARKING PROGRAMS AS WELL AS IMPROVING PUBLIC TRANSIT.
ANOTHER PRIORITY THIS YEAR HAS BEEN A FOCUS ON TRANSPORTATION ELECTRIFICATION.
IN FY '19, WE WERE ALLOCATED $150,000 TO DEVELOP AN ELECTRIC VEHICLE AND CITYWIDE CHARGING STATION ANALYSIS WITH THE GOAL OF DEVELOPING A ROADMAP TO ADVANCE ZERO EMISSION VEHICLES, IMPROVE AIR QUALITY AND REDUCE CARBON EMISSIONS.
THIS ANALYSIS INCLUDES AN ASSESSMENT OF THE CITY'S OWN MUNICIPAL PASSENGER AND LIGHT-DUTY FLEET TO IDENTIFY VEHICLES THAT WOULD BE POTENTIALLY APPROPRIATE.
IT INCLUDES AN ECONOMIC ASSESSMENT OF WHAT THOSE REPLACEMENTS WOULD ENTAIL.
A CITYWIDE ELECTRICAL VEHICLE CHARGING STATION ANALYSIS, LOOKING AT WHERE ARE THE BEST PLACES THAT WE SHOULD REALLY BE LOOKING AT INSTALLING AD DITIONZ L CHARGING STATIONS, AND THAT IS A PROCESS THAT WE'RE WORKING WITH CPS ENERGY ON AND AN ASSESSMENT OF COMMUNITY BARRIERS TO ELECTRIC VEHICLE ADOPTION.
AND THAT REALLY AT THE END OF THE DAY, LOOKS AT AFFORDABILITY, EQUITY ISSUES, THIS -- WE DEFINITELY KNOW THAT THERE IS BARRIERS IN TERMS OF THE COST OF VEHICLES.
WE WANT TO REALLY UNDERSTAND HOW DO WE OVERCOME THOSE AND WE ALSO WANT TO HAVE CONVERSATIONS WITH BASICALLY INDUSTRY EXPERTS, AUTO DEALERS, WHAT ARE THE BARRIERS TO GETTING MORE VEHICLES ON THE ROADWAY.
THE STUDY IS PROJECTED TO BE COMPLETED THIS FALL AND WE WILL PRESENT THE RESULTS TO THE COMMUNITY HEALTH AND EQUITY COMMITTEE TO FIND OUT WHAT OUR NEXT STEPS SHOULD BE.
EQUITY HAS BEEN A BIG FOCUS AND PRIORITY FOR THE OFFICE OF SUSTAIN NLT FOR MANY -- SUSTAINABILITY FOR MANY YEARS AND IT REALLY STARTED WITH THE ADOPTION OF THE SUSTAINABILITY PLAN.
BASICALLY IT MEANS THAT ALL THE STRATEGIES IN THERE WERE IDENTIFIED TO SEE IF THERE WERE THOSE THAT HAD SPECIFICALLY EQUITY IMPLICATIONS.
AND FY '19 WE ENSURED THAT EQUITY WAS A FOUNDATION OF THE SA CLIMATE READY PLAN.
WE ESTABLISHED A CLIMATE EQUITY WORKING GROUP CONSISTING OF SOCIAL JUSTICE AND ENVIRONMENTAL EQUITY PROFESSIONALS WHO HELPED ADVISE US IN THE DEVELOPMENT OF THE PLAN AND HELP US DEVELOP CLIMATE EQUITY -- IMPLEMENT THE PLAN TO MAKE SURE THAT WE ARE ASKING THE RIGHT QUESTIONS AND MAKING SURE THAT WE ARE AVERTING ANY UNFORESEEABLE NEGATIVE IMPACTS THROUGH PLAN IMPLEMENTATION.
WE ALSO WERE ABLE TO HAVE A CLIMATE EQUITY FELLOW WHO WORKED WITH US FOR A FEW MONTHS WHO TARGETED SPECIFIC ENGAGEMENT IN OUR MOST VULNERABLE AND MARGINALIZED COMMUNITY.
IN FY 2020, WE'RE GOING TO CONTINUE THIS WORK BY WORKING WITH THE OFFICE OF EQUITY TO IDENTIFY KEY EQUITY INDICATORS AND SUPPORTING THIS SEGREGATED DATA AND ESTABLISHING A CLIMATE EQUITY COMMITTEE TO ASSIST WITH IMPLEMENTATION OF THE SA CLIMATE READY AND SA TOMORROW PLANS.
KETOSUCCESS FOR OUR COMMUNITY -- KEY TO SUCCESS IS TO ENSURE THAT WE AS AN ORGANIZATION ARE LEADING BY EXAMPLE.
I'VE HEARD THIS TIME AND TIME AGAIN, AS WE'VE MET WITH STAKEHOLDERS AND THEY'RE ABSOLUTELY RIGHT.
UNTIL THE CITY SHOWS THAT WE CAN DO THIS, THE EXPECTATION SHOULD BE THAT OTHERS MIGHT BE A LITTLE SUSPICIOUS, SO AS A RESULT WE WILL BE FOCUSING ON FOUR KEY AREAS THIS COMING YEAR.
WE'LL BE WORKING WITH ALL OF OUR CITY DEPARTMENTS TO DEVELOP INDIVIDUAL SUSTAINABILITY PLANS THAT ARE ONE, DATA DRIVEN, AND ARE IN LINE WITH THE OBJECTIVES OF THE SA TOMORROW SUSTAINABILITY AND CLIMATE READY PLANS AND THE KEY IS WE WANT TO WORK WITH THEM TO FIND OUT WHAT'S GOING TO WORK FOR THEM, WHAT'S GOING TO SUPPORT THEIR EFFORT BUT AT THE SAME TIME FURTHER OUR SUSTAINABILITY GOALS, AND THE KEY TO THAT IS DATA DRIVEN.
WE WANT TO MAKE SURE THAT WE'RE IDENTIFYING THOSE INITIATIVES THAT WE CAN ACTUALLY TRACK PROGRESS.
WE WILL BE UPDATING THE WORKING WITH BUILDING AND EQUIPMENT SERVICES AND OTHER KEY CITY DEPARTMENTS TO UPDATE THE CITY OF SAN ANTONIO GREEN FLEET PROCUREMENT POLICY.
THAT POLICY WAS ORIGINALLY ADOPTED IN APRIL OF 2010, BUT A LOT HAS CHANGED SINCE THEN.
SO WE WANT TO TAKE INTO CONSIDERATION OUR UPDATED SUSTAINABILITY AND CLIMATE OBJECTIVES, WE WANT TO TAKE INTO CONSIDERATION CHANGING TECHNOLOGY AND ECONOMICS.
AND ALSO INCORPORATE THE RESULTS OF OUR ELECTRIC
[01:00:02]
VEHICLE ANALYSIS THAT'S CURRENTLY GOING ON AND MAKE SURE THAT THIS CAN HOPEFULLY GUIDE US TO MORE EFFICIENT VEHICLE PURCHASES GOING FORWARD.WE WILL ALSO BE WORKING TO DEVELOP AN ENERGY POLICY FOR THE CITY OF SAN ANTONIO'S FACILITIES, TO SET STANDARDS AND EXPECTATIONS RELATED TO ENERGY USE FOR ALL OF OUR FACILITIES AND BUILDINGS.
AND FINALLY, ONE OF THE THINGS WE'VE BEEN TALKING WITH DIFFERENT SUSTAINABILITY LIAISONS ACROSS THE CITY ORGANIZATION AND TH THERE'S A LOT OF INTEREST JUST IN BASIC SUSTAINABILITY SUBJECT MATTER, SO WE WILL BE CONVENING QUARTERLY CLASSES THAT WE'RE OFFERING TO OUR STAFF, ALSO WORKING WITH OTHER KEY DEPARTMENTS SUCH AS SOLID WASTE TO JUST COVER BASIC TOPICS.
THIS COULD BE AT WORK OR HOME.
THERE'S BEEN A LOT OF INTEREST AROUND RENEWABLE ENERGY AND ENERGY EFFICIENCY, WHAT DOES CPS OFFER.
SO WE WANTED TO START HAVING THESE QUARTERLY MEETINGS TO COORDINATE OUR WORKFORCE AND HOPEFULLY IT WILL MAKE OUR TRANSITION HERE, MAKE IT A LITTLE EASIER, AS WELL AS THEY CAN START TAKING SOME OF THOSE BEHAVIOR PES HOME WITH THEM.
WE ARE REQUESTING TWO IMPROVE.
S FOR FY 2020, WE KNOW THAT THE KEY TO SUCCESS FOR ANY PLAN OR PROGRAM IS CONTINUED COMMUNITY EDUCATION, AWARENESS AND CONVERSATION.
IN ORDER TO ENSURE CROSS-SECTOR INVOLVEMENT AND BUY-IN FOR IMPLEMENTATION ACTIVITIES.
IT'S NOT ENOUGH JUST TO PASS A PLAN, NEED TO CONTINUE THE CONVERSATION SO PEOPLE UNDERSTAND THE WHYS AND SO WE CAN ALSO REFLECT AND HEAR WHAT THEIR THOUGHTS, CONCERNS AND IDEAS ARE.
WE ARE PROPOSING $235,000 FOR A SUSTAINABILITY ENGAGEMENT AND COMMUNICATIONS INITIATIVE TO ASSIST WITH THE IMPLEMENTATION OF THE SA CLIMATE READY PLAN.
THIS INITIATIVE WILL FOCUS ON DIRECT MESSAGING AND ENGAGEMENT WITH THE GENERAL PUBLIC AND FOCUS ON VERY SPECIFIC TARGET AUDIENCES, SUCH AS BUSINESS AND INDUSTRY, NEIGHBORHOOD AND HOMEOWNER ASSOCIATIONS, CHAMBERS OF COMMERCE AS WELL AS VULNERABLE POPULATIONS.
THE GOAL IS TO UTILIZE MEDIA, RADIO, PRINT, AS WELL AS PUBLIC MEETINGS, COMMUNITY EVENTS AND IN-PERSON PRESENTATIONS.
FUNDING WILL BE UTILIZED FOR COMMUNICATIONS AND MARKETING, GRAPHIC DESIGN, SPANISH TRANSLATION AND INTERPRETATION AND OUTREACH MATERIALS.
OUR PERFORMANCE MEASURES FOR THIS FUNDING INCLUDE THE NUMBER OF STAKEHOLDER MEET MEETINGS, NUMBER OF PEOPLE ENGAGED, SOCIAL MEDIA IMPRESSIONS AND NUMBER OF MEDIA ARTICLES AND READERS.
THIS INITIATIVE IS ALSO, IT'S NOT JUST ABOUT THE CLIMATE PLAN, IT ALSO SUPPORTS OTHER COSA PRIORITIES, SUCH AS OZONE AS TAINMENT, PUBLIC HEALTH AND MOBILITY.
WE'LL TALK A LITTLE BIT MORE TOMORROW ABOUT THE CLIMATE PLAN IN ADDITION, AS THE COST OF PLAN IMPLEMENTATION IS A PRIORITY, WE ARE ALSO REQUESTING $50,000 FOR CONSULTANT SERVICES TO UNDERTAKE ECONOMIC ANALYSIS OF POTENTIAL SUSTAINABILITY AND POLICIES AND PROGRAMS PRIOR TO MAKING ANY RECOMMENDATIONS TO CITY COUNCIL.
THE OFFICE OF SUSTAINABILITY HAD ALSO RECEIVED CONGESTION MITIGATION AND AIR QUALITY FUNDS FOR TWO PROGRAMS THAT WILL IMPROVE AIR QUALITY AND REDUCE GREENHOUSE GAS EMISSIONS.
WE HAVE ESTABLISHED A COSA EV SA BRAND IN PARTNERSHIP WITH CPS ENERGY AND OTHER KEY STAKEHOLDERS AND WE'LL BE LAUNCHING A THREE-YEAR CAMPAIGN WHICH WILL INCLUDE CREATING COMMUNITY AWARENESS AND ENGAGING STAKEHOLDERS AROUND THE AIR QUALITY AND ECONOMIC BENEFITS OF ELECTRIC VEHICLES, EV CHARGERS.
WE'LL LOOK AT THE MARKETING PROMOTION, EDUCATION AWARENESS ABOUT THE IMPORTANCE OF THIS SHIFT .
WE WILL ALSO BE EXPANDING OUR ANTI-IDLING AT SCHOOLS PROGRAM.
IT PROVIDES SIGNAGE AND EDUCATIONAL MATERIALS FOR LOCAL K THROUGH 12 SCHOOLS TO EDUCATE AND ENCOURAGE PARENTS, TEACHERS, VISITORS OF THE IMPORTANCE OF NOT IDLING IN THEIR VEHICLES.
IT'S BEEN REALLY VERY SUCCESSFUL.
WE HAVE 24 SCHOOLS THAT HAVE SIGNED ON AND THIS NEXT PHASE WE'RE LOOKING TO EXPAND IT OTHER THREE YEARS AS WELL AS WE'LL BE WORKING WITH UTSA RESEARCHERS TO LOOK INTO THE FEASIBILITY OF AIR QUALITY SENSORS TO THIS INITIATIVE.
SO IN SUMMARY, OUR 2020 PRIORITIES ARE THE SA CLIMATE READY PLAN, OUR FY2020 PROJECTS INCLUDE EXTERNAL AND INTERNAL LIGHTING RETROFITS AT MLK PARK, ROSEDALE PARK, AND VARIOUS LIBRARIES.
THERE'S AT LEAST ONE LIBRARY IN EVERY DISTRICT, BUT WE ARE LOOKING AT NUMEROUS LIBRARIES.
WE'LL BE FOCUSING ON THE AMERICAN CITIES CLIMATE CHALLENGE THROUGH DECEMBER OF 2020.
OUR EV CHARGING INFRASTRUCTURE AND FLEET EVALUATION, OUR MUNICIPAL SUSTAINABILITY PROGRAMS, AND OUR CBACK PROGRAMS. WITH THAT, THANK YOU VERY MUCH.
AND I LOOK FORWARD TO YOUR QUESTIONS AFTER THE NEXT
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PRESENTATION.>> MAYOR NIRENBERG: THANK YOU, DOUG.
I'M EXCITED TO SHARE WITH YOU A BIT ABOUT OUR ACCOMPLISHMENTS FOR THIS YEAR ALONG WITH OUR PLANS FOR NEXT YEAR.
AND I'LL START OFF BY DESCRIBING THE PURPOSE OF OUR DEPARTMENT, WHICH IS TO FOSTER ECONOMIC GROWTH THROUGH COLLABORATION AND INNOVATION.
IN ADDITION WE'RE UNIQUELY POSITIONED TO PROMOTE EQUITY THROUGH ECONOMIC OPPORTUNITY, WHICH YOU'LL HEAR MORE ABOUT DURING MY PRESENTATION.
OUR DEPARTMENT IS ORGANIZED INTO FOUR DIFFERENT YET INTERCONNECTED AREAS OF WORK, AND I'LL INTRODUCE OUR STAFF AS I DESCRIBE EACH AREA.
JOBS AND INCREASING INVESTMENT IN TARGETED INDUSTRIES.
WE ACHIEVE THESE OUTCOMES THROUGH THE STRATEGIC USE OF SEVERAL ECONOMIC DEVELOPMENT TOOLS, SUCH AS TAX ABATEMENTS AND GRANTS AND A DYNAMIC PROGRAM.
JESSICA HARRIS LED THIS DIVISION FOR ALMOST A FULL YEAR PROVIDING FOR CONTINUITY OF OPERATIONS AS STAFF TRANSITIONS BETWEEN DIFFERENT ASSIGNMENTS.
THE INTERNATIONAL RELATIONS OFFICE, LED BY SHERRY, CULTIVATES GLOBAL RELATIONSHIPS THAT FOSTER OPPORTUNITIES FOR INCREASED TOURISM, TRADE, DIRECT INVESTMENT, AND CULTURAL ENGAGEMENT.
OUR WORKFORCE DEVELOPMENT EFFORTS ARE LED BY ADRIAN PEREZ, WHO WITH HIS TEAM FOCUSED ON UNDERSTANDING PRIVATE SECTOR DEMAND FOR TALENT, DEVELOPING TRAINING PATHWAYS TO MIDDLE SCHOOL SKILLS JOBS AND SUPPORTING LIFE-LONG LEARNING.
MICHAEL SINDON IS OUR SMALL BUSINESS ASSISTANT DIRECTOR.
HE AND HIS TEAM IMPLEMENT PROGRAMS AND INITIATIVES THAT PROMOTE BUSINESS FORMATION AND GROWTH BY INCREASING ACCESS TO CAPITAL, BUSINESS COUNSELING, EDUCATION, MENTORING, AND EQUAL OPPORTUNITY FOR CITY CONTRACTS.
LASTLY, ED DAVIS COULDN'T JOIN US TODAY, BUT HE SERVES AS THE EXECUTIVE DIRECTOR OF OUR ECONOMIC DEVELOPMENT CORPORATION, A NONPROFIT ENTITY DESIGNED TO INVEST FUNDS AND ACQUIRE EQUITY IN ECONOMIC DEVELOPMENT PROJECTS.
OUR PROPOSED BUDGET FOR FISCAL YEAR '20 IS $15.8 MILLION AND IS ALLOCATED INTO FIVE CATEGORIES.
OPERATIONS REPRESENT ALMOST A THIRD OF OUR BUDGET INCLUDING ALL PERSONNEL EXPENSES.
APPROXIMATELY $3.6 MILLION IS ALLOCATED FOR EXPENSES ASSOCIATED WITH PREVIOUSLY-AUTHORIZED ECONOMIC DEVELOPMENT AGREEMENTS.
FUNDING FOR DELEGATE AGENCIES REPRESENTS 23% OF OUR BUDGET.
THE ECONOMIC DEVELOPMENT INCENTIVE FUND SUPPORTS PROJECTS THAT ADVANCE KEY POLICY PRIORITIES SUCH AS HIGH-WAGE JOB CREATION.
AND LASTLY, $1.6 MILLION OF OUR BUDGET SUPPORTS VARIOUS ECONOMIC DEVELOPMENT PARTNERS LIKE THE ECONOMIC DEVELOPMENT FOUNDATION AND BIOMED SA.
OUR PROPOSED FISCAL YEAR 20 BUDGET INCLUDES A $700,000 INCREASE FROM LAST YEAR.
$200,000 ARE ASSOCIATED WITH AN ADDITIONAL POSITION AND EXPENSES ASSOCIATED WITH THE IMPLEMENTATION OF THE OPPORTUNITY ZONES, WHICH IS A NEW FEDERAL TAX INCENTIVE.
AN ADDITIONAL $200,000 IS FROM INTEREST EARNED ON OUR INCENTIVE FUND AND WILL BE AVAILABLE FOR ADDITIONAL ECONOMIC DEVELOPMENT PROJECTS.
AND AS WE MENTIONED LAST WEEK, A ONE-TIME INCREASE IN FUNDING TO PROJECT QUEST IS ALSO INCLUDED IN OUR PROPOSED BUDGET.
SAN ANTONIO'S LONG-TERM ECONOMIC COMPETITIVENESS DEPENDS HEAVILY ON ENSURING THAT WE CONTINUE TO GROW HIGH WAGE TARGETED INDUSTRY JOBS WHILE CREATING PATHWAYS FOR RESIDENTS TO ACCESS THESE JOBS.
OUR INCLUSIVE GROWTH STRATEGY TARGETS POPULATIONS AND GEOGRAPHIES TO ADDITIONAL OPPORTUNITIES AND INVESTMENT.
THE TAX ABATEMENT GUIDELINES APPROVED BY COUNCIL IN DECEMBER OF 2018 REDEFINED OUR PRIORITY GEOGRAPHIES AND PROVIDED A NEW APPROACH TO BUILD PARTNERSHIPS WITH KEY EMPLOYERS THAT SHARE OUR PRIORITY FOR INCREASING THE SKILL LEVEL AMONG OUR WORKFORCE.
OUR ECONOMIC DEVELOPMENT INCENTIVE FUND -- OUR EDIF INVESTMENTS HAVE SHIFTED TO SUPPORT EMPLOYERS' COMMITMENT TO WORKFORCE DEVELOPMENTS.
THEY PROMOTE INCLUSIVE GROWTH IN OUR COMMUNITY.
TWO PERFORMANCE MEASURES WE TRACK ARE JOBS AND INVESTMENT LEVERAGED THROUGH OUR ECONOMIC DEVELOPMENT PROJECTS.
WHILE OUR RESULTS CAN VARY BASED ON THE RECRUITMENT AND LOCAL EXPANSION OPPORTUNITIES WITHIN A
[01:10:02]
PARTICULAR YEAR, WE ARE ON COURSE TO EXCEED OUR GOALS FOR FISCAL YEAR '19 AS WE DID IN '18.CONTRIBUTING TOWARDS THE SUCCESS ARE SUBSTANTIAL RECRUITMENT PROJECTS, INCLUDING CUISINE SOLUTIONS AND VICTORY CAPITAL, ALONG WITH LOCAL RETENTION AND EXPANSION EFFORTS SUCH AS PENTAGON FEDERAL CREDIT UNION, LGS INNOVATIONS, AND BOOZE ALLEN HAMILTON .
THE PROJECTS SECURED YEAR TO DATE ARE ANTICIPATED TO GENERATE $4.6 BILLION IN ECONOMIC IMPACT TO OURUR COMMUNITY.
SWITCHING GEARS A BIT OVER TO -- OVER THE PAST TWO YEARS OUR DEPARTMENT HAS FACILITATED AN ONGOING WORKING GROUP OF LOCAL MILITARY, ACADEMIC, AND LIFE SCIENCE INDUSTRY LEADERS TO CITY AND DEVELOP AN ACTION PLAN FOR GREATER COMMERCIALIZATION OF MILITARY MEDICAL RESEARCH IN SAN ANTONIO.
IN FISCAL YEAR '20 WE WILL OPERATIONALIZE KEY COMPONENTS OF THIS ACTION PLAN WITH THE CREATION OF THE SAN ANTONIO MILITARY MEDICAL INNOVATIONS DIRECTOR POSITION WITHIN THE ECONOMIC DEVELOPMENT CORPORATION.
THIS POSITION WILL SUPPORT THE GROWING LIFE ECOSYSTEM IN PARTNERSHIP THAT HELP THE MILITARY MEET THEIR MEDICAL MISSION REQUIREMENTS AND AT THE SAME TIME CREATE COMMERCIALIZATION OPPORTUNITIES.
EVENTS SUCH AS OUR MILITARY MEDICAL INDUSTRY DAYS FACILITY VALUABLE CONNECTIONS BETWEEN THE MILITARY MEDICAL COMMUNITY AND OUR LOCAL LIFE SCIENCE INDUSTRY.
WE SUCCESSFULLY PILOTED THIS TYPE OF EVENT IN COLLABORATION WITH THE ARMY'S INSTITUTE FOR SURGICAL RESEARCH.
OVER 200 MEMBERS OF OUR LIFE SCIENCE INDUSTRY ATTENDED THIS EVENT TO LEARN MORE ABOUT THE OPPORTUNITIES TO PARTNER WITH ISR.
OUR NEXT MILITARY MEDICAL INDUSTRY DAY WILL TAKE PLACE IN OCTOBER AND WILL INCLUDE PARTICIPATION FROM THE AIR FORCE AND NAVY MEDICAL RESEARCH INSTALLATIONS.
ANOTHER TOOL WE'RE LEVERAGING TO PROMOTE EQUITABLE GROWTH IS THE OPPORTUNITY ZONE PROGRAM.
OPPORTUNITY ZONES WERE CREATED AS PART OF THE 2017 TAX CREDITS AND JOBS ACT AND PROVIDED DEFERRAL OF CAPITAL GAINS TAXES FOR QUALIFYING INVESTMENTS WITHIN DESIGNATED GEOGRAPHIES WHICH INCLUDE 24 CENSUS TRACTS CLUSTERED INTO NINE ZONES.
THE POSITION ADDED WILL LEAD OUR OPPORTUNITY ZONE STRATEGY.
GIVEN THE CONSIDERABLE INTEREST GENERATED LOCALLY AND NATIONALLY PRIORITIES FOR THIS STRATEGY.
IN APRIL, WE FORMED THE EXTERNAL ADVISORY GROUP, WHICH INCLUDES REPRESENTATIVES FROM COMMUNITY DEVELOPMENT ORGANIZATIONS, RESIDENTS, LOCAL DEVELOPERS, AND REAL ESTATE PROFESSIONALS TO ACT AS A SOUNDING BOARD AND PROVIDE INPUT.
THE FISCAL YEAR '19 BUDGET ALSO INCLUDED PILOT PROGRAM FUNDING FOR DEVELOPMENT OF A WEST SIDE OPPORTUNITY ZONE STRATEGIC PLAN.
IN PARTNERSHIP WITH THE WEST SIDE DEVELOPMENT CORPORATION, THE CONSULTANT DEVELOPING THIS PLAN IS CURRENTLY IN THE INPUT GATHERING PHASE OF THE COMMUNITY ASSESSMENT.
THE RESULTING STRATEGIC PLAN WILL BE COMPLETED IN EARLY OCTOBER AND WILL IDENTIFY BUSINESS CORRIDORS IN NEED OF INVESTMENT ALONG WITH THE COMMUNITY'S INVESTMENT PRIORITIES.
WE ALSO WORKED WITH THE EXTERNAL ADVISORY GROUP AND SEVERAL COUNCIL DISTRICT OFFICES TO DEVELOP MARKETING MATERIALS THAT HIGHLIGHT EACH OF THE AREAS AND SUMMARIZE THE TAX INCENTIVE.
IN ADDITION, WE'RE IN THE PROCESS OF PURCHASING A WEB APPLICATION TO MARKET OPPORTUNITY ZONES.
OVER THE NEXT YEAR, OUR PLAN IS TO EVALUATE THE TOOL'S EFFECTIVENESS IN PROVIDING REALTIME ACCESS TO ELIGIBLE PROJECTS SEEKING INVESTMENT.
PERHAPS ONE OF THE MOST DIRECT PATHS TO INCREASING EQUITABLE ECONOMIC OPPORTUNITY IS THROUGH WORKFORCE DEVELOPMENT.
FOR FISCAL YEAR '20 WE PLAN TO CONTINUE OUR SUPPORT FOR SA WORKS, AN INDUSTRY-LED STRATEGIC WORKFORCE DEVELOPMENT ORGANIZATION THAT PROMOTES ECONOMIC MOBILITY BY ALIGNING EDUCATION PROVIDERS WITH PRIVATE SECTOR EMPLOYMENT DEMANDS.
WHILE WE'RE RECOMMENDING A DECREASE IN FUNDING FROM $250,000 TO $200,000, SA WORKS HAS INDICATED THEY ARE IN A POSITION TO ABSORB THIS REDUCTION WITHOUT AN IMPACT TO THE SCOPE OF WORK DUE TO THEIR INCREASED FUNDING FROM OTHER SOURCES.
SPECIFICALLY, SA WORKS WILL DEVELOP TWO JOB REPORTS ARTICULATING HIRING TRENDS, SKILL NEEDS, AND HELPING TO HIGHLIGHT OUR IN-DEMAND SKILLS BASED ON REGIONAL JOB POSTINGS.
SA WORKS WILL ALSO LEAD AN EFFORT TO ENGAGE OUR BIOSCIENCE INDUSTRY TO BETTER UNDERSTAND AND INFORM LOCAL EDUCATION PARTNERS REGARDING THIS INDUSTRY'S WORKFORCE NEEDS.
[01:15:01]
SA WORKS IS ALSO COORDINATING BETWEEN 5,000 AND 6,000 EXPERIENTIAL LEARNING OPPORTUNITIES, WHICH INCLUDE TEACHER EXTERNSHIPS, JOB SHADOWS AND INTERNSHIPS WORKING WITH PARTNERS LIKE DHS AND FAMILY SERVICES ASSOCIATION.FINALLY, WE'RE PARTNERING WITH SA WORKS TO EXPLORE COMMUNITY LEVEL METRICS TO BETTER UNDERSTAND THE CONNECTION OUR EDUCATION AND WORKFORCE DEVELOPMENT SYSTEMS. SA WORKS IS ONE OF OUR PARTNERS WHICH IS HOUSED WITHIN THE ECONOMIC DEVELOPMENT FOUNDATION.
THROUGH OUR PUBLIC-PRIVATE PARTNERSHIP OVER THE PAST TEN YEARS EDF HAS EVOLVED OUR ECONOMIC DEVELOPMENT DELIVERY SYSTEM FOCUSING ON TARGETED INDUSTRIES AND ADDING KEY ELEMENTS SUCH AS BUSINESS RETENTION AND EXPANSION, INTERNATIONAL TRADE, AND AS I JUST DESCRIBED, WORKFORCE DEVELOPMENT PROGRAMS. EDF IS CURRENTLY DEVELOPING A NEW STRATEGIC PLAN, EVALUATING THE REGION'S COMPETITIVENESS AND DEFINING ACTIVE INVESTMENT -- PROACTIVE INVESTMENTS TO SUPPORT REGIONAL ECONOMIC DEVELOPMENT.
THE STRATEGIC PLANNING PROCESS INCLUDES STAKEHOLDER ENGAGEMENT, DATA ASSESSMENT, AND BENCHMARKING OF KEY INDICATORS ALONG WITH ASSESSMENT OF OUR TARGETED INDUSTRIES.
THE DATA WILL INFORM STRATEGIES AND ULTIMATELY AN IMPLEMENTATION PLAN TO BE COMPLETED BY JANUARY 2020.
WHILE THE STRATEGIC PLANNING PROCESS IS PRIVATE SECTOR DRIVEN, CITY STAFF REMAINED ENGAGED AT ALL LEVELS AND STAGES TO PROVIDE FEEDBACK AND ARTICULATE OUR POLICY PRIORITIES.
ANOTHER LONG-STANDING ECONOMIC DEVELOPMENT PARTNER IS BIO MED SA.
I WOULD LIKE TO ACKNOWLEDGE AND THANK ANN STEVENS FOR HER LEADERSHIP AND FOR JOINING US TODAY.
IN COLLABORATION EDF, BIO MED SA SERVES AS OUR LIAISON AND SUPPORTS RECRUITMENT AND EXPANSION FUNCTIONS.
IN FISCAL YEAR '20 THEY WILL ALSO CONTINUE ITS IMPLEMENTATION OF THE LIFE SCIENCES ECONOMIC DEVELOPMENT ACTION PLAN WITH SPECIFIC FOCUS ON NEW MARKETING STRATEGIES.
CYBERSECURITY SAN ANTONIO IS ALSO A KEY ECONOMIC DEVELOPMENT PARTNER, AND I WOULD LIKE TO THANK AMANDA FOR JOINING US TODAY.
THIS YEAR CYBERSECURITY SAN ANTONIO HELPED FACILITATE A WORKING GROUP THAT IDENTIFIED KEY CYBER INITIATIVES FOR OUR COMMUNITY.
THESE INITIATIVES INCLUDE UTSA'S NATIONAL SECURITY COLLABORATION CENTER, GRID RESILIENCY, DEVELOPMENT OF THE CYBER INNOVATION CENTER AND A REGIONAL SECURITY OPERATION CENTER AND COLLABORATION WITH OUR MILITARY PARTNERS.
TO FACILITATE PROGRESS TOWARDS THESE IDENTIFIED INITIATIVES.
INTERNATIONAL BUSINESS DEVELOPMENT IS A CRITICAL COMPONENT OF OUR ECONOMIC DEVELOPMENT STRATEGY.
WE LAUNCHED THE SAN ANTONIO TRADE AND INVESTMENT STRATEGY IN 2015.
AS A RESULT OF A TWO-YEAR PARTNERSHIP WITH THE BROOKINGS INSTITUTION AND ITS GLOBAL INITIATIVE.
IT PRIORITIZED FOREIGN INVESTMENT AND EXPORT GROWTH.
OUR MOST RECENT ENGAGEMENT HELPED DEVELOP A DATA-DRIVEN METHODOLOGY BY WHICH TO BETTER TARGET GLOBAL METROS FOR COLLABORATION, TRADE, AND INVESTMENT.
THIS METHODOLOGY EVALUATED A NUMBER OF ELEMENTS, INCLUDING ECONOMIC LINKAGES WITHIN OUR TARGETED INDUSTRIES WHILE ALSO TAKING INTO ACCOUNT MACRO ECONOMIC FACTORS, POLITICAL FACTORS, AND CULTURAL FACTORS.
THE DATA WAS GATHERED AND CALCULATED FOR EACH SPECIFIC TARGETED INDUSTRY THEN VALIDATED WITH LOCAL STAKEHOLDERS IN THAT PARTICULAR INDUSTRY.
WE THEN COMBINED ALL THE LISTS AND PRIORITIZED BASED ON THOSE COMMUNITIES THAT THE LISTS HAD IN COMMON.
THE FIVE PRIORITY MARKETS ARE METROS IDENTIFIED INCLUDE TOKYO, SEOUL, FRANKFURT, TORONTO, AND MEXICO CITY.
HAVING COMPLETED THIS EXERCISE, OUR PLAN FOR FISCAL YEAR '20 IS TO IDENTIFY OUTCOMES TO SEEK TO ACCOMPLISH THROUGH STRATEGIES THROUGH THE RELATIONSHIP FOR THAT PARTICULAR METRO.
FOR EXAMPLE, WE HAVE SUBSTANTIALLY LONGER AND STRONGER RELATIONSHIPS WITH MEXICO CITY AND TOKYO, THEREFORE OUR STRATEGIES WILL BE MORE COMPLEX AND OUTCOMES SUCH AS FOREIGN INVESTMENT WOULD BE APPROPRIATE.
HOWEVER, FOR COMMUNITIES SUCH AS TORONTO, MORE RELATIONSHIP BUILDING MAY BE IN ORDER, WHICH IS WHERE OUR INTERNATIONAL BUSINESS STRATEGY AND INTERNATIONAL RELATION STRATEGIES INTEGRATE.
OUR INTERNATIONAL RELATIONS OFFICE SERVES AS THE CITY'S FOREIGN AFFAIRS LIAISON AND IN DOING SO THE OFFICE PLAYS A KEY ROLE IN DEVELOPING AND MAINTAINING OUR GLOBAL RELATIONSHIPS.
SAN ANTONIO HAS 21 SISTER CITIES AND TWO FRIENDSHIP CITIES AND JUST LAST MONTH RECEIVED THE
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BEST OVERALL PROGRAM AWARD FROM SISTER CITY'S INTERNATIONAL BASED ON THE INCREDIBLE WORK THAT SHERRY AND HER TEAM ACCOMPLISHED LAST YEAR.THIS YEAR'S HIGHLIGHTS INCLUDE A 26 MEMBER DELEGATION FROM DARMSTADT GERMANY.
THE DELEGATION WAS LED BY THEIR LORD MAYOR, PARTICIPATED IN 46 EVENTS OVER A WEEK-LONG PERIOD AND INVOLVED 75 DIFFERENT LOCAL ORGANIZATIONS.
THE GERMAN DELEGATES REPRESENTED CIVIC, SCIENTIFIC, BUSINESS, CULTURAL, EDUCATION, AND THE EDUCATION FIELD AND INCLUDED TWO PRESIDENTS OF UNIVERSITIES, THE HEAD OF THEIR ENERGY COMPANY, A RETIRED ASTRONAUT, CYBERSECURITY EXPERTS AND A NUMBER OF PEOPLE ENGAGED IN ARTS AND CULTURE.
ANOTHER IMPORTANT INITIATIVE THIS YEAR WAS THE JAPAN TEXAS LEADERSHIP SYMPOSIUM IN MARCH.
APPROXIMATELY 250 LOCAL, NATIONAL, AND INTERNATIONAL DELEGATES ATTENDED THE EVENT HOSTED AT OUR CONVENTION CENTER AND IT FOCUSED ON ECONOMIC DEVELOPMENT, WOMEN'S LEADERSHIP, AND THE IMPORTANCE OF CULTURE AND FORGING BILATERAL RELATIONSHIPS.
THE TEAM ALSO ORGANIZED AN INTERNATIONAL START-UP DAY FOR COMPANIES ATTENDING SOUTH BY SOUTHWEST.
50 DELEGATES FROM BRAZIL, CHILE, SPAIN, DENMARK, AND GERMANY VISITED SAN ANTONIO AND MET WITH LOCAL TECH ECOSYSTEM MEMBERS.
IN OCTOBER OF 2018, COUNCILMAN COURAGE LED A TRADE AND CULTURAL MISSION TO CHINA AND A MONTH LATER MAYOR NIRENBERG, ALONG WITH COUNCILWOMAN VIAGRAN, LED A TRADE MISSION TO JAPAN AND MET WITH INDUSTRY LEADERS, INCLUDING TOYOTA EXECUTIVES.
FOR FISCAL YEAR '20 WE PLAN TO CONTINUE OUR SISTER CITY RELATED ACTIVITIES BOTH INBOUND HOSTING AND OUTBOUND TRADE AND CULTURAL MISSIONS TO OUR SISTER CITIES IN SOUTH KOREA, JAPAN, AND GERMANY, AMONG OTHER CITIES.
OUR STAFF SERVES ON THE COMMITTEE FOR THE U.S. MEXICAN SUMMIT AND THE U.S. JAPAN SUMMIT WHICH WILL INCLUDE CIVIC AND BUSINESS LEADERS IN DISCUSSING CULTURAL COLLABORATIONS .
NOW I'M GOING TO SHIFT GEARS A BIT AND SHARE OUR ACCOMPLISHMENTS AND PLANS FOR NEXT YEAR IN RELATION TO SMALL BUSINESS.
OUR SMALL BUSINESS DIVISION, PERHAPS MORE THAN ANY OTHER DIVISION, POSITIVELY IMPACTS WOMEN AND PEOPLE OF COLOR THROUGH STRATEGIC PROGRAMS AND INITIATIVES SUCH AS OUR SBEDA PROGRAM.
SBEDA LEVERAGES THE CITY'S PURCHASING POWER TO ELIMINATE HISTORIC DISPARITIES AND PROVIDE OPPORTUNITIES TO PARTICIPATE IN CITY CONTRACTS.
IT CONTINUES TO GROW AND WE EXPECT TO BE ON PACE TO EXCEED LAST YEAR'S RECORD-SETTING PERCENTAGES.
THE SMALL BUSINESS OFFICE ALSO MANAGES VARIOUS PARTNERSHIPS THAT HELP ENTREPRENEURS WHETHER THEY'RE IN THE IDEATION, START-UP OR GROWTH PHASE OF THEIR BUSINESS TRAJECTORY.
ONE OF THE PARTNERS IS LIFT FUND.
I WOULD LIKE TO ACKNOWLEDGE JANIE AND SELENA WHO ARE JOINING US HERE TODAY.
WE PARTNER WITH THEM ON TWO SUCCESSFUL PROGRAMS. THE FIRST IS LAUNCH SA, WHOSE PRIMARY GOALS ARE TO ENCOURAGE ENTREPRENEURIAL ACTIVITY AND CONNECT SMALL BUSINESSES TO LOCAL RESOURCES AND TECHNICAL ASSISTANCE WITH AN EMPHASIS ON SERVING WOMEN AND PEOPLE OF COLOR.
WE ENTERED OUR SECOND FIVE-YEAR PARTNERSHIP WITH LAUNCH SA.
OUR ANNUAL ALLOCATION FOR THIS PROGRAM IS $160,000, WHICH LIFT FUND MATCHES.
LATER THIS YEAR, LAUNCH SA WILL RELEASE ITS ANNUAL REPORT, BUT IN 2018 THEY SERVED OVER 4,300 CLIENTS.
64% OF THE CLIENTS SURVEYED REPORTED AN INCREASE IN SALES AND CUMULATIVELY 175 JOBS WERE CREATED.
THE SECOND PROGRAM MANAGED BY LIFT FUND IS A LOAN INTEREST BUY DOWN PROGRAM WHICH PROVIDES 0% INTEREST LOANS TO LOCAL SMALL, MINORITY, AND WOMEN-OWNED BUSINESSES.
THIS YEAR THE PROGRAM PROVIDED 29 LOANS TOTALING NEARLY $700,000 WITH 45% OF THE LOANS GOING TO WOMEN OWNED BUSINESSES AND 21% GOING TO AFRICAN AMERICAN-OWNED BUSINESSES.
THIS CAPITAL, WHICH AVERAGED APPROXIMATELY $24,000 PER LOAN, WAS USED TO RENOVATE FACILITIES AND BUY EQUIPMENT.
AND LAST, THE SMALL BUSINESS DEVELOPMENT FEE WAIVER PROGRAM IS THE NEWEST TOOL IN OUR PORTFOLIO.
BUSINESSES IN OPERATION FOR AT LEAST TWO YEARS MAY BE ELIGIBLE FOR CITY AND SAWS DEVELOPMENT FEE WAIVERS.
MINORITY AND WOMEN-OWNED BUSINESSES ARE ELIGIBLE FOR A GREATER AMOUNT OF FEE WAIVERS.
HOWEVER, THOSE BUSINESSES LOCATED IN OUR INCLUSIVE GROWTH AREA ARE ELIGIBLE FOR THE GREATEST ASSISTANCE, WHICH IS $25,000.
IN ORDER TO SPUR BUSINESS REINVESTMENT IN THESE GEOGRAPHIES.
THIS YEAR WE SERVED NINE SMALL BUSINESSES AND WAIVED A TOTAL OF $88,000 IN FEES, WHICH HELPED
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FACILITATE $14 MILLION IN INVESTMENT BY THESE BUSINESSES, CREATING OVER 100 JOBS.THROUGHOUT MY PRESENTATION, I REFERENCED SPECIFIC AREAS OF WORK INTENTIONALLY DESIGNED TO BUILD ON THE FOUNDATION OF ECONOMIC INCLUSION AND EQUITY.
WE REENVISIONED OUR TRADITIONAL PROGRAMS LIKE OUR TAX ABATEMENT GUIDELINES AND THE DEVELOPMENT FEE WAIVER PROGRAMS TO FOCUS ON INCLUSIVE GROWTH.
WE CONTINUE OUR INVESTMENT IN PROVEN SUCCESSFUL MODELS LIKE THE SBEDA AND OUR LOAN INTEREST BUY-DOWN PROGRAM.
AND IN 2020 WE HAVE IDENTIFIED OPPORTUNITIES TO EMBED EQUITY IN OUR WORK.
YOU MAY RECALL ONE OF THE EXAMPLES FROM OUR EQUITY TRAINING REFERENCING THE CURB CUT EFFECT.
IN ESSENCE, SOLUTIONS DESIGNED TO ELIMINATE BARRIERS EXPERIENCED BY A PARTICULAR POPULATION AND BENEFITING ADDITIONAL POPULATIONS.
CURB CUTS INTENDED TO MAKE SIDEWALKS ACCESSIBLE FOR WHEELCHAIRS, ALSO BENEFIT INDIVIDUALS WITH STROLLERS AND CARTS.
SO OUR DIVERSITY ACTION PLAN DEMONSTRATES THIS TYPE OF EFFECT.
WE HELP -- IT WAS DESIGNED TO HELP OUR MINORITY AND WOMEN-OWNED BUSINESSES TO EFFECTIVELY PREPARE FOR CONTRACTING OPPORTUNITIES.
IT CALLED FOR THE DEVELOPMENT AND DISTRIBUTION OF AN ANNUAL PROCUREMENT GUIDE.
WHILE THIS STRATEGY WAS INTENTIONALLY DESIGNED TO MAKE CONTRACTING MORE ACCESSIBLE FOR ONE PARTICULAR POPULATION, THE PROCUREMENT GUIDE WILL BENEFIT ALL BUSINESSES INTERESTED IN CONTRACTING WITH THE CITY.
ANOTHER OPPORTUNITY EXISTS WITH THE ECONOMIC DEVELOPMENT FOUNDATION REGIONAL STRATEGIC PLAN.
THROUGH OUR PARTICIPATION IN THIS PROCESS WE STRIVE TO PROMOTE THE ALIGNMENT OF THE RESULTING IMPLEMENTATION PLAN WITH OUR POLICY PRIORITY OF ECONOMIC EQUITY AND INCLUSION.
BUT WE KNOW THERE'S MORE OPPORTUNITIES, WHICH IS WHY WE'RE EXCITED TO BE COMPLETING OUR DEPARTMENT EQUITY ASSESSMENT THIS YEAR AND USE IT TO DEVELOP AN ACTION PLAN FOR OUR DEPARTMENT.
AND THAT CONCLUDES MY PRESENTATION.
>> MAYOR NIRENBERG: THANK YOU, ALEX.
>> GOOD AFTERNOON, MAYOR, CITY COUNCIL.
JOHN JACKS WITH THE CENTER CITY DEVELOPMENT AND OPERATIONS DEPARTMENT.
I'M HAPPY TO BE BACK HERE AGAIN THIS YEAR TO PRESENT OUR BUDGET TO YOU.
CENTER CITY DEVELOPMENT OPERATIONS STRIVES TO MAKE DOWNTOWN A PLACE EVERYONE WANTS TO BE, AND WE DO THAT BY FACILITATING REFLECTING OUR DIVERSE COMMUNITY.
AND WE REALLY DO THAT IN TWO AREAS, AND THAT'S IN OUR OPERATIONS DIVISION AS WELL AS OUR DEVELOPMENT DIVISION.
FOR -- THAT INCLUDES THE PARKING FUND , THE GENERAL FUND, CAPITAL FUND, A SMALLER MARKET SQUARE FUND AND THIS YEAR WE'RE ADDING THE CITY TOWER AND GARAGE FUND TO OUR DEPARTMENT.
WE ARE ADDING FIVE POSITIONS THIS YEAR.
THAT WILL BE IN OUR PARKING LOT OPERATIONS AND THAT WILL BE TO OPERATE THE CITY TOWER GARAGE, WHICH WE STARTED OPERATING ACTUALLY ON AUGUST 1ST.
THE GENERAL FUND BUDGET FOR FY2020 IS $19 MILLION.
THAT'S PRIMARILY OUR RIVER OPERATIONS AND OUR DEVELOPMENT FUNDS, OUR DEVELOPMENT DIVISIONS.
WE ALSO SUPPORT DOWNTOWN EVENTS, FACILITY OPERATIONS AND PROGRAMMING, SUCH AS AT MARKET SQUARE OR AT LA VILLITA.
A LITTLE BIT THE TOWER OF AMERICAS, AND WE ALSO OVERSEE FACILITY LEASING AND CONTRACTS FOR THE CITY.
OUR DEPARTMENT IS PRIMARILY MADE UP OF SIX DIFFERENT SECTIONS THAT OVERSEE OR OPERATE VARIOUS COMPONENTS OF OUR PROGRAMS. THE TOP FOUR ARE FROM THE GENERAL FUND, THAT'S THE RIVER WALK OPERATIONS, DEVELOPMENT, REAL ESTATE LEASING AND CONTRACTS, AND SPECIAL EVENTS.
PARKING OPERATIONS AND ENFORCEMENT IS AN ENTERPRISE FUND, AND I'LL EXPAND ON THAT A LITTLE BIT LATER.
AND THEN FINALLY MARKET SQUARE AND LA VILLITA OPERATIONS.
RIVER WALK OPERATIONS REALLY THREE PRIMARY FUNCTIONS.
THEY ARE DOWN THERE DAILY, 365 DAYS A YEAR MAINTAINING AND CLEANING THE RIVER WALK TO MAKE IT A WORLD-CLASS ATTRACTION.
ARGUABLY THE NUMBER ONE ATTRACTION IN THE STATE OF TEXAS.
THROUGH THE VARIOUS DIFFERENT WAYS.
THE PICTURE THERE IS OF OUR LADY ECHO.
THAT'S A SPECIFIC PIECE OF EQUIPMENT THAT CLEANS THE RIVER OF DEBRIS.
WE PLANT OVER 400 PLANTS YEARLY TO BEAUTIFY THE RIVER WALK.
THAT INCLUDES BEAUTIFICATION INCLUDING SOME MAINTENANCE LIKE WATERING AND WEEDING AND MAKING SURE THOSE GARDENS LOOK GREAT.
FINALLY, THEY OVERSEE CAPITAL IMPROVEMENTS FOR THE RIVER WALK.
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WORKING WITH OUR DESIGNERS TO MAKE ENHANCEMENTS AND IMPROVEMENTS TO THE RIVER WALK, PRIMARILY IN AREAS OF ADA ACCESSIBILITY.OUR DEVELOPMENT TEAM FOCUSES ON PROJECT FACILITATION, THIS IS ASSISTING AND HELPING WITH PROJECTS THAT ARE OCCURRING WITHIN OUR CENTER CITY, WORKING WITH VARIOUS DEPARTMENTS LIKE DEVELOPMENT SERVICES AND TCI TO HELP FACILITATE PROJECTS THROUGH THAT PROCESS.
WE ALSO DEVELOP STRATEGIC DEVELOPMENT PARTNERSHIPS WITH OTHER AGENCIES OR DEVELOPERS ON VARIOUS PROJECTS SUCH AS THE ALAMEDA, WORKING WITH TEXAS PUBLIC RADIO.
THEY OVERSEE OUR INNER CITY INCENTIVES AND OUR BROWNFIELD PROGRAM AND ALSO MANAGEMENT OF THE CCHIP AND FEE WAIVER PROGRAMS. OUR REAL ESTATE LEASINGS AND CONTRACT TEAM MANAGES DOWNTOWN CULTURAL FACILITIES SUCH AS LA VILLITA AND MARKET SQUARE.
WE ALSO LEVERAGE CITY ASSETS, SO THAT'S LOOKING AT WHAT ASSETS DOES THE CITY OWN, PARTICULARLY IN THE CENTER CITY THAT WE CAN LEVERAGE AND USE TO HELP PROMOTE DEVELOPMENT, SUCH AS RED BERRY MANSION WOULD BE AN EXAMPLE .
WE ALSO MANAGE OVER 300 CONTRACTS AS WELL AS 240 LEASES.
OUR SPECIAL EVENTS TEAM HELPS COORDINATE LARGE DOWNTOWNDI EVES SUCH AS ROCK 'N' ROLL MARATHON, THAT'S PARTNERING WITH AN OUTSIDE GROUP TO PUT ON THAT EVENT, ALSO FIESTA.
SO WORKING CLOSELY WITH THE FIESTA COMMISSION TO HELP THEM WITH THEIR EVENTS.
WE ALSO PRODUCE SOME OF OUR OWN EVENTS SUCH AS MOVIE NIGHTS, LIKE AT TRAVIS PARK OR RECENTLY THIS YEAR AT PLAZA GUADALUPE.
WE OVERSEE TEN PUBLIC SPACES IN THE DOWNTOWN AREA.
THIS PAST YEAR WE ACTIVATED OR HELPED WITH OVER 750 TOTAL EVENTS AND THEN ALSO LAST YEAR WE STARTED OVERSEEING THE FIRST AMENDMENT PROCESSIONS PROCESS.
WE HAD A BUSY YEAR LAST YEAR IN FISCAL '19.
AS YOU ALL KNOW, WE WERE VERY BUSY WITH DOCKLESS VEHICLES THIS PAST YEAR.
WE SUCCESSFULLY IMPLEMENTED DOCKLESS VEHICLE REGULATIONS AS PART OF A PILOT PROGRAM, AND WE'LL BE COMING TO YOU LATER THIS FALL TO AWARD THREE CONTRACTS TO PEOPLE WHO HAVE APPLIED THROUGH THE RFP PROCESS.
THIS PAST YEAR WE ALSO OVERHAULED OUR CITY FEE WAIVER PROGRAM BY REPLACING ICRIP AND CREATING A NEW FEE WAIVER PROGRAM THAT IS CITYWIDE AND FOCUSES ON AFFORDABLE HOUSING.
AS PART OF THAT, WE ALSO REVISED THE CCHIP PROGRAM TO FOCUS ON AFFORDABLE HOUSING AS WELL.
AND THEN, FINALLY, WE SUCCESSFULLY NEGOTIATED AND EXECUTED A NEW TEN-YEAR CONTRACT WITH THE FIESTA COMMISSION.
WE WORKED HARD THIS PAST YEAR TO EMBED EQUITY IN CCDO AND WE DID THAT IN A COUPLE DIFFERENT WAYS.
I JUST MENTIONED THAT WE DID START PROVIDING INCENTIVES TO DEVELOPERS TO PROVIDE MORE AFFORDABLE HOUSING OPPORTUNITIES FOR FAMILIES.
AND THEN WE ALSO WORKED CLOSELY ON OUR EVENTS.
THESE ARE FREE EVENTS THAT WE WORKED AND PARTNERED WITH THE COMMUNITY, DIFFERENT ORGANIZATIONS TO PROVIDE FREE EVENTS FOR ALL OF OUR CITIZENS.
IN FY2020 WE PLAN TO CONTINUE TO OUTREACH TO COMMUNITY OF COLOR AND LOWER INCOME TO INCREASE AWARENESS OF THOSE FREE EVENTS.
WE WILL ALSO START A TRAINING PROGRAM FOR OUR STAFF, PARTICULARLY THOSE THAT ARE OUT IN THE FIELD WORKING DOWNTOWN TO TRAIN THEM TO BE COMPASSIONATE WITH DOWNTOWN HOMELESS POPULATION.
AND THEN, FINALLY, WE'LL FURTHER COLLABORATE WITH NEIGHBORHOOD AND HOUSING SERVICES DEPARTMENT ON PRIORITIZING AFFORDABLE HOUSING DEVELOPERS VIA MULTI-PRONGED APPROACH TO ELIMINATE AND REDUCE POSSIBLY BARRIERS TO PRODUCTION.
WE DO HAVE SOME ENHANCEMENTS AS FAR AS REVENUE IS CONCERNED IN THIS YEAR'S BUDGET.
WE WILL BE, AS PER THE CONTRACT WITH THE OPERATOR, WE WILL BE PROPOSING AN INCREASE TO TICKET PRICES FOR RIVER BARGE TICKETS.
THAT WILL BE A DOLLAR -- ON AVERAGE, A DOLLAR PER TICKET.
THAT ALSO INCLUDES AN ADDITIONAL 50 CENTS THAT WILL GO TO HAVEN FOR HOPE, WHICH WAS PRESENTED IN VERO'S BUDGET -- OR IN MELODY'S BUDGET, SORRY.
THAT ALSO INCLUDES A 50-CENT TICKET INCREASE, OR A 50-CENT PER TICKET FOR THE TOWER.
THAT WILL ALSO GO TO HELP WITH HOMELESSNESS.
WE ARE ADDING A CCHIP AGREEMENT ASSIGNMENT FEE.
THIS IS A FEE THAT CURRENTLY THERE IS NO FEE, SO WHENEVER SOMEONE COMES IN AND WOULD LIKE
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TO REQUEST A CCHIP AGREEMENT TO BE ASSIGNED TO A DIFFERENT OWNER OR A DIFFERENT DEVELOPER, THERE IS QUITE A BIT OF ADMINISTRATIVE WORK THAT GOES INTO THAT.SO WE'RE ADDING A FEE THAT WILL COVER THOSE COSTS.
AND THEN, FINALLY, A SMALL INCREASE IN THE BOLIVAR HALL RENTAL FEE.
BOLIVAR HALL IS A FACILITY AT LA VILLITA AND THIS IS MAKING IT COMPARABLE TO OTHER FACILITIES WITHIN LA VILLITA.
OUR PARKING OPERATIONS DIVISION OVERSEES A LITTLE OVER 1,699 SPACES.
SO THIS WOULD BE LIKE METER SPACES.
A LITTLE OVER 3,000 SPACES IN PARKING GARAGE.
THAT INCLUDES THE NEW CITY TOWER GARAGE, FOR A TOTAL OF 7,125 PUBLIC PARKING SPACES THAT WE MANAGE AND OPERATE.
PARKING ALSO INCLUDES PARKING ENFORCEMENT.
SOME OF THOSE ARE DOWNTOWN, ABOUT FOUR OR FIVE OPERATE IN DOWNTOWN AND THE REMAINDER -- SORRY.
FOUR OR FIVE CITYWIDE AND THE REMAINDER ARE OPERATING DOWNTOWN.
PRIMARILY DOWNTOWN THEY ARE ENFORCING METER PARKING, AND CITYWIDE THEY FOCUS MORE ON SOME SAFETY ISSUES, HANDICAPPED PARKING, MAKING SURE THAT THE STREETS ARE NOT CONGESTED.
AND THEN THIS YEAR WE ALSO STARTED BY ENFORCING DOCKLESS VEHICLES.
THE PROPOSED FY2020 PARKING FUND IS $20.7 MILLION.
THIS INCLUDES REVENUES THAT ARE GENERATED FROM PARKING RATES AND LEASES.
AND IT IS A RESTRICTED FUND USED FOR OPERATING AND MAINTENANCE OF CITY PARKING STRUCTURES AND AREAS.
YOU CAN SEE THERE'S VARIOUS REVENUE COMING IN FROM METERS, GARAGES, AND LOTS.
THERE IS A LARGE FUND BALANCE THAT I'LL GET INTO HERE IN A MINUTE.
AND, REALLY, WE USE THAT PRIMARILY TO OPERATE THOSE FACILITIES.
WE ARE TO HAVE A LARGE CAPITAL PROJECT COMPONENT THIS FISCAL YEAR AND THAT DOES PAY FOR PARKING ENFORCEMENT AS WELL.
PARKING ENFORCEMENT REVENUES GO INTO GENERAL FUND.
THEY DO NOT GO INTO THE PARKING FUND.
YOU CAN SEE A SMALL PIECE THERE FOR TRANSPORTATION DEMAND MANAGEMENT.
THAT INCLUDES SOME ALTERNATIVE TRANSPORTATION FUNDING THAT TCI'S MANAGING AS WELL AS A POSITION THAT WAS IN LAST YEAR'S BUDGET FOR TCI.
A LOT OF YOU ARE AWARE OF A LARGE FUND BALANCE THAT WE HAVE ACCRUED OVER THE YEARS.
THIS YEAR WE ARE PROPOSING, AS PART OF OUR CAPITAL IMPROVEMENTS PROJECT TO SPEND THAT FUND BALANCE DOWN.
THAT WILL INCLUDE CAPITAL IMPROVEMENTS TO OUR EXISTING FACILITIES.
THAT WILL ALSO INCLUDE MAINTAINING AND OPERATING RESERVE.
AND THEN SETTING ASIDE FUNDS FOR ADDITIONAL PARKING SUPPLY IN THE FUTURE.
FINALLY, THE MARKET SQUARE FUND IS A $2.6 MILLION FUND.
THIS IS PRIMARILY FUNDS THAT ARE COMING IN FROM LEASES AT MARKET SQUARE AND ALSO THE PARKING LOT ON TOP OF FARMERS MARKET.
THOSE REVENUES GO INTO THIS FUND.
AND THEN THE FUND IS PRIMARILY OPERATIONS AND MAINTENANCE.
AND THEN THERE'S SOME PAID OUT TO PARKING OPERATIONS TO OPERATE THAT PARKING FACILITY.
WE HAVE -- PROPOSING A MARKET PLAZA RENTAL FEE.
CURRENTLY WE HAVE A FEE BUT IT'S FOR EACH INDIVIDUAL WITHIN MARKET SQUARE.
WE DO NOT HAVE A FEE FOR RENTING THE ENTIRE MARKET SQUARE.
WHEN WE HAVE LARGE EVENTS SUCH AS THAT, IT DOES PUT A STRAIN ON OUR OPERATIONS, AND SO THIS WILL BE A NEW $6800 PER DAY FEE TO RENT THE ENTIRETY OF MARKET SQUARE, AND THAT WILL GO TO COVER COSTS SUCH AS JANITORIAL SERVICES AND STAFFING.
SO FOR FY2020 OUR GOALS FOR RIVER OPERATIONS WILL BE TO CONTINUE TO MAINTAIN A WORLD-CLASS ATTRACTION.
FOR PARKING OPERATIONS, WE ARE GOING TO WORK ON ENHANCING OUR CUSTOMER SERVICE EXPERIENCE BY IMPROVING FACILITIES AND ALSO THROUGH CAPITAL IMPROVEMENTS AND TECHNOLOGY.
SPECIFICALLY WE'RE LOOKING TO EXPAND OUR PAY BY PHONE APP INTO OUR PARKING GARAGES.
THAT IS CURRENTLY AVAILABLE FOR ON-STREET PARKING, BUT WE'D LIKE TO MOVE IT INTO OUR GARAGES AS WELL TO MAKE THAT EXPERIENCE MUCH MORE CONVENIENT AND EASIER FOR OUR CUSTOMERS.
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ACTIVATION EVENTS THROUGHOUT DOWNTOWN.AND THEN, FINALLY, WE'LL ALSO WORK TO CONTINUE TO STIMULATE ECONOMIC DEVELOPMENT WITHIN DOWNTOWN AREA AND FOCUS ON HOUSING DEMAND AND PLACEMAKING.
AND THAT CONCLUDES MY PRESENTATION.
AND THANK YOU TO DOUG AND TO ALEX FOR YOUR PRESENTATIONS AS WELL.
I DON'T REALLY HAVE ANY QUESTIONS FOR YOU, DOUG.
I KNOW WE'LL BE TALKING TOMORROW.
OTHER THAN TO SAY THAT THE CAP IS JUST ANOTHER REMINDER OF THE -- HOW MUCH INTERSECTION THERE IS BETWEEN DEPARTMENTS AND A LOT OF THESE TOPICS WHEN WE'RE TALKING ABOUT EQUITY, ESPECIALLY, AND THE IMPACTS THAT WE'RE MITIGATING FOR WITH REGARD TO OUR MOST VULNERABLE COMMUNITIES, WHETHER IT'S CREATION OF ECONOMIC OPPORTUNITY OR HOUSING OPPORTUNITY OR, YOU KNOW, EVEN THE OPPORTUNITY TO PARK TO GO TO YOUR JOB.
EQUITY IS EMBEDDED IN ALL OF THESE AND THERE'S SOME INTERSECTIONS THAT ARE CREATED.
I WANT US TO BE COGNIZANT OF THOSE AND AS WE TRANSITION BETWEEN THESE DEPARTMENTS, KIND OF HIGHLIGHT THOSE AND SEE WHERE WE CAN BE EFFICIENT WITH OUR OPERATIONS.
I THINK YOU'VE DONE A GOOD JOB OF THAT ALREADY, BUT IT'S IMPLICIT IF WE CAN START BRINGING THOSE OUT, I THINK IT WOULD HELP US UP HERE QUITE A BIT.
ALEX, I HAVE A FEW QUESTIONS FOR YOU.
ACTUALLY, JUST ONE MAIN QUESTION.
IF WE CAN GO TO THE SLIDE, I DON'T KNOW WHICH ONE IT WAS, BUT YOU SHOWED THE NUMBER OF JOBS.
AS WE GET INTO A MORE INCLUSIVE GROWTH STRATEGY AND OUR FOCUS INDUSTRIES, ADVANCED MANUFACTURING, CYBER, BIO SCIENCES, ET CETERA, WHAT IS THE PROFILE OF THOSE JOBS, THE 4500 OR SO.
WE KNOW JOB GROWTH IN SAN ANTONIO IS ORGANIC.
THERE'S A LOT MORE JOBS THAN JUST THOSE THAT ARE ON THAT PAGE, BUT WHEN WE'RE USING TARGETED INCENTIVES OR OTHER OPPORTUNITIES WORKING WITH A COMPANY TO GROW HERE, TO MOVE HERE, WHAT'S THE PROFILE OF THOSE JOBS THAT WE'RE SEEKING AND HOW IS THAT CHANGING, ADDRESSING THE ISSUE OF EQUITY IN TARGETED INDUSTRIES?
>> THE CHANGES THAT COUNCIL APPROVED TO OUR GUIDELINES ALLOW US TO PILOT A DIFFERENT TYPE OF APPROACH.
WE HAVE BEEN TRADITIONALLY BEEN FOCUSED ON HIGH-WAGE TARGET INDUSTRY JOBS, BUT WE ALSO NOW HAVE AN OPPORTUNITY TO LEVERAGE OUR TOOLS TO CREATE JOBS THAT WILL FACILITATE AN ENTRY INTO EMPLOYMENT, BUT THAT FOCUS -- WHERE EMPLOYERS HAVE A STRONG FOCUS ON WORKFORCE DEVELOPMENT.
SO THE MIX OF THE JOBS THAT WE MAY SEE MOVING FORWARD, AS FAR AS THOSE THAT WE INCENTIVIZE, MAY CHANGE A BIT.
WE'RE STILL PILOTING THAT TYPE OF APPROACH.
WE'RE NOT SURE HOW MUCH WE'RE GOING TO CONTINUE THAT.
BUT IT WILL ADD SOME DIMENSION AND VARIETY TO THE TYPES OF JOBS WE WANT TO BE ATTRACTING.
>> MAYOR NIRENBERG: YEAH, WELL, I APPRECIATE THAT AND I THINK THAT JOB COUNT IS IMPORTANT, ESPECIALLY WHEN THOSE QUALITY JOBS THAT ARE PART OF THOSE NEW INDUSTRIES.
BUT WE CAN'T DISCOUNT THE IMPACT THAT A LOT OF THOSE EMPLOYERS ARE CREATING THROUGH THEIR WORK IN WORKFORCE DEVELOPMENT.
I KNOW WE ARE ENGAGING ALAMO PROMISE.
THAT'S A HUGE OPPORTUNITY FOR THIS ENTIRE COMMUNITY.
BUT AS MUCH AS WE CAN TARGET AREAS AND ALSO COMPANIES THAT ARE GOING TO CREATE A RESIDUAL GENERATIONAL IMPACT FOR OUR COMMUNITY, THE BETTER.
AND I APPRECIATE THE FOCUS ON THAT.
THAT'S REALLY THE ONLY QUESTION I HAVE FOR YOU, ALEX.
AND I APPRECIATE THE WORK OF YOUR ENTIRE DEPARTMENT.
WE GET A LOT OF IMPACT FROM ALL OF THE AREAS.
I DO WANT TO SAY THANK YOU TO OUR PARTNERS AT THE LIFT FUND.
THE SMALL AMOUNT OF MONEY THAT WE CAN SUPPORT THE WORK OF ORGANIZATIONS LIKE THE LIFT FUND, THOSE ARE EXPONENTIAL RETURNS ON INVESTMENT WHEN WE CAN INFUSE A LOCAL SMALL BUSINESS WITH THE OPPORTUNITY TO GET NEW EQUIPMENT TO EXPAND THEIR MARKET AND SO FORTH.
YOU KNOW, THAT THE RESIDUAL AFTER THAT IS ALMOST INCALCULABLE.
THANK YOU TO OUR FRIENDS AT LIFT FUND.
AND THEN OF COURSE THE INTERNATIONAL DEPARTMENT.
I KNOW THAT ECONOMIC DEVELOPMENT IS PART OF THE INTERNATIONAL DISCUSSION, BUT THESE ARE LONG-TERM INVESTMENTS WHEN WE CREATE FRIENDSHIPS WITH ANOTHER COMMUNITY.
WE'RE STILL REAPING THE BENEFITS OF THE PHONE CALLS THAT HENRY CISNEROS MADE TO JAPAN.
THAT WAS NOT ORIGINALLY INTENDED AS AN ECONOMIC DEVELOPMENT PHONE CALL, IT WAS A PHONE CALL FOR FRIENDSHIP, BUT WE'RE NOW, AGAIN, REAPING THE BENEFITS OF THOSE CULTURAL PARTNERSHIPS THAT WE'VE CREATED THAT ARE NOW LEADING INTO OTHER THINGS.
[01:45:02]
SO APPRECIATE THE UNDERSTANDING OF ALL OF OUR CITY ORGANIZATION ON THE IMPORTANCE OF INTERNATIONAL.JUST ONE QUESTION FOR YOU, JOHN, IF YOU CAN JUST -- ON THE CCHIP ASSIGNMENT FEE.
I UNDERSTAND WHEN WE'RE TRANSFERRING A CCHIP AGREEMENT FROM ONE OWNER TO THE NEXT, THAT'S WHAT THE FEE IS BASED ON?
SO WE -- WHEN AN INDIVIDUAL COMES IN OR DEVELOPER COMES IN AND WE EXECUTE AN AGREEMENT WITH THEM, SOMETIMES THEY MAY SELL THAT PROJECT IN THE FUTURE.
AND SO WHEN THEY SELL THAT PROJECT, IT REQUIRES US TO ASSIGN THAT AGREEMENT TO THE NEW OWNER.
AND SO THAT IS WHERE THAT FEE WILL COME INTO PLAY.
>> MAYOR NIRENBERG: SO HERE'S WHERE ANOTHER INTERSECTION COMES IN.
SO THERE'S A FLAT FEE, $2500 PER AGREEMENT, AND THERE'S ALSO A DOLLAR FIGURE PER UNIT? IS THAT RIGHT?
>> THAT'S FOR THE INCENTIVE, YES.
>> MAYOR NIRENBERG: SO THERE'S AN ASSIGNMENT FEE FOR EACH AGREEMENT.
AND THEN THERE'S A $100 PER HOUSING UNIT FEE THAT'S MEASURED BASED ON THE NUMBER OF UNITS THAT ARE BEING TRANSFERRED.
>> MAYOR NIRENBERG: ARE ALL THOSE THE SAME OR ARE WE DISCOUNTING OR EXEMPTING AFFORDABLE UNITS?
>> WE DIDN'T LOOK AT DOING THAT.
IT'S JUST GOING TO BE BASED ON THE ACTUAL NUMBER OF UNITS, NOT WHETHER THEY'RE AFFORDABLE OR NOT.
I'D LIKE TO CONSIDER THAT AND LOOK AT WHAT THE IMPACT WOULD BE.
BECAUSE ONE OF THE CONSEQUENCES THAT WE DON'T WANT TO PRODUCE IS THAT WE ARE SOMEHOW ADDING TO THE COST OF AFFORDABLE HOUSING.
SO IF THAT'S SOMETHING THAT WE CAN EXAMINE AND SEE IF THERE IS MAYBE A DOWNSTREAM IMPACT THAT WE DON'T WANT TO INTEND, AND KEEP THAT FROM HAPPENING, THAT WOULD BE HELPFUL.
>> MAYOR NIRENBERG: OTHER THAN THAT, GREAT JOB.
CONTINUE ON AND THANK YOU ALL VERY MUCH FOR THE PRESENTATIONS.
THANK YOU ALL FOR YOUR PRESENTATIONS.
ALEX, I'M GOING TO HAVE YOU COME UP FIRST.
THANK YOU FOR THE PRESENTATION AND GOOD JOB ON YOUR FIRST ONE HERE FOR US.
EVERYONE WHO LEADS IN THE DIFFERENT AREAS.
UNDER THOSE AGENCIES -- SLIDE NO. 4 YOU TALKED ABOUT THE DELEGATE AGENCIES.
REMIND ME THE DELEGATE AGENCIES ARE THOSE THAT ARE SPECIFICALLY WORKING WITH THE WORKFORCE DEVELOPMENT, CORRECT?
>> VIAGRAN: AND HOW MANY DO WE HAVE THERE?
SO I KNOW IT'S A FEW, NOT AS MANY AS THE OTHER SIDE.
THANK YOU FOR THAT, AND I'M GLAD WE'RE SEEING AN INCREASE AND ALSO SEEING THAT INTEREST THAT WE'RE GETTING FOR OUR EDIF, OUR INCENTIVE FUND TOO.
I'M VERY EXCITED ABOUT THE INCLUSIVE GROWTH STRATEGY.
THANK YOU, ADRIAN, FOR ALL THE WORK THAT WE HAVE DONE FOR THIS TO MOVE FORWARD.
YOU KNOW, GOING BACK TO THE OTHER THOUGHT THAT WE HAD, EVEN BEFORE THAT, WAS WHEN YOU TALKED ABOUT EQUITY AND EQUITY BEING A PART OF THE WHOLE OPPORTUNITY FOR THE ENTIRE CITY.
I THINK THAT WAS A GREAT PACE SET FOR THIS AREA BECAUSE WE WANT TO ACTIVATE THE PARTS OF THE COMMUNITY THAT WERE LEFT BEHIND SO LONG AGO.
AND WE ARE REALIZING -- AND THOSE PARTS OF THE COMMUNITY ARE REALIZING THE OPPORTUNITIES THAT ARE OUT THERE.
WE'RE JUST ACTING AS MATCHING AGENTS RIGHT FOU.
FOR THE JOBS, 4500, THAT WAS OUR GOAL, AND WE HAVE 6541.
WHAT I LIKE ABOUT THIS NEW INCENTIVE AND THIS INCLUSIVE GROWTH STRATEGY AND WHAT WE'RE INCENTIVIZING IS THAT, YES, IT'S HIGH-WAGE JOBS BUT IT'S OTHER JOBS AS WELL THAT ARE LIVING WAGE.
BUT NOW WITH ALL OF THESE INCENTIVES THAT WE'RE GETTING, WE KNOW THAT WE'RE GOING TO ACTIVATE THE RESIDENTS IN AND AROUND THE AREA AND NOT HAVE THESE BIG CORPORATIONS BRINGING EMPLOYEES FROM OTHER PARTS OF OTHER STATES, OTHER PLACES AND THEN HAVING THEM COME TO SAN ANTONIO.
WE'RE ACTUALLY ACTIVATING OUR RESIDENTS, WHICH I THINK IS VERY IMPORTANT.
IT'S THAT MIX THAT YOU MENTIONED IS EXTREMELY IMPORTANT.
I KNOW FOR THE OPPORTUNITY ZONES, Y'ALL HAVE BEEN WORKING ON THAT.
ONE OF THE THINGS -- I KNOW NATIONAL LEAGUE OF CITIES AND OUR OFFICE WANTS TO MAKE SURE THAT THERE'S A LOCAL COMPONENT, THAT THE LOCAL COMMUNITY IS STILL GOING TO BE ENGAGED SOMEHOW WITH WHAT ARE WE GOING TO BE INVESTING IN OR WHAT'S THE INVESTMENT GOING TO BE WITH THESE OPPORTUNITY ZONES.
SO JUST THAT WE HAVE THAT AT TOP
[01:50:01]
OF MIND AS YOU'RE DOING THE WORK.I AM LOOKING FORWARD TO THAT STRATEGIC PLANNING PROCESS, THAT SAEDF IS GOING THROUGH.
I THINK IT'S GOING TO BE IMPORTANT FOR US MOVING FORWARD.
AND THEN THE -- FOR THE SMALL BUSINESS, WE HAVE MADE GREAT STRIDES THERE, AND I KNOW THE MENTORING PROGRAM HAS BEEN HELPING AND Y'ALL -- MICHAEL, Y'ALL HAVE BEEN VERY, VERY FOCUSED ON EVERYTHING THAT'S HAPPENING THERE.
AND CONTINUE TO LOOK AT OPPORTUNITIES WHERE, IF THERE ARE PROCUREMENT OPPORTUNITIES THAT THE CITY HAS, WHERE THERE ARE AREAS THAT WE CAN UNBUNDLE AND GIVE THE OPPORTUNITIES TO OUR SMALL BUSINESSES TO BE A PART OF THAT CONVERSATION.
I THINK THAT'S IMPORTANT BECAUSE WE CAN HAVE THE SMALL BUSINESSES PARTICIPATE IN LARGE BIDDING OPPORTUNITIES.
AGAIN, I'M VERY PROUD OF THE SMALL BUSINESS DEVELOPMENT FEE WAIVERS.
I THINK THAT'S SOMETHING THAT'S GOING TO GO SO FAR.
BECAUSE SO MANY TIMES OUR SMALL BUSINESSES SAID WHAT ABOUT US? YOU'RE GIVING MONEY AWAY TO THESE BIG COMPANIES, BUT WHAT ABOUT US THAT ARE CREATING THESE 100 JOBS THAT YOU MENTIONED.
AND YOUR INTENTIONALITY IS SIGNIFICANT.
AND JUST CONTINUE AND KEEP THAT UP.
I DO HAVE ABOUT 60 QUESTIONS FOR DOUG.
ON THE EMBEDDING EQUITY AND SUSTAINABILITY -- I THINK IT'S ON NO. 9.
I WOULD LIKE A FOLLOW UP FROM YOU.
SEE WHERE THERE ARE KEY EQUITY INDICATORS.
I WOULD LIKE TO SEE WHAT THOSE KEY EQUITY INDICATORS ARE AS YOU CONTINUE TO COMPILE THEM, IF YOU COULD FOLLOW UP AND SHARE THEM WITH US, I WOULD APPRECIATE IT.
AND I'LL SAVE ALL MY COMMENTS FOR THURSDAY.
FOR THE 235,000, JUST VERY QUICKLY.
AS WE'RE DOING THIS COMMUNICATIONS PROGRAM, WHAT I KNOW WE HAVE TO DO DURING THIS OUTREACH CAMPAIGN IS SHARE WITH OUR COMMUNITY WHAT SUSTAINABILITY, WHAT THE SA CLIMATE READY PLAN IS AND WHAT IT IS NOT.
SO I THINK JUST MAKING SURE THAT THAT MESSAGING IS A PART OF IT.
>> VIAGRAN: FINALLY, FOR CCDO, JOHN JACKS.
>> VIAGRAN: A COUPLE OF QUESTIONS WITH THE RIVER BARGE TICKET PRICE INCREASE.
ERIK AND MARIA, THE 50-CENT INCREASE.
SO THOSE INCREASES ARE GOING TO OUR HOMELESS.
HALF IS GOING TO HAVEN AND THE OTHER HALF IS FOR THE FUTURE.
>> VIAGRAN: HOMELESS OUTREACH.
>> WALSH: THERE IS ALSO AN ADDITIONAL INCREASE IN THE BARG-
WE'VE GOT 50 CENTS ON THE BARGE TICKETS.
50 CENTS ON THE TOWER AGREEMENT.
IN ADDITION, THE CONCESSION AGREEMENT WITH THE CITY HAS A SCHEDULED $1 INCREASE.
>> WALSH: JOHN TALKED ABOUT BOTH OF THEM THERE.
THAT $1 INCREASE IS REVENUE TO THE GENERAL FUND.
AND ARE WE GOING -- AND I KNOW SOMEBODY MENTIONED IT A WHILE BACK ABOUT GETTING JUST AN UPDATE FROM CCDO ON THE STATUS AND HOW IT'S WORKING OUT WITH HOW WE'RE NOW BARGE OWNERS AND HOW IT'S WORKING OUT.
I CAN TELL YOU THAT REVENUE IS DOING REALLY GOOD.
>> IN FACT, IT'S INCREASED 54% SINCE 2017.
AND THIS PAST JULY WAS A RECORD YEAR FOREVER.
SOLD MORE TICKETS THAN WE HAVE EVER BEFORE.
EVEN MORE THAN DURING THE FINAL FOUR.
LAST QUESTION FOR THE RIVER BARGE TICKET PRICE INCREASE.
IS THERE STILL A DIFFERENCE OF LOCAL VERSUS OUT OF TOWN?
>> VIAGRAN: BUT BOTH ARE HAVING THAT TICKET INCREASE?
>> BASICALLY EVERY TICKET WILL INCREASE.
EVERY TICKET TYPE WILL INCREASE A DOLLAR.
>> VIAGRAN: AND FOR PARKING OPERATIONS, I THINK YOU MENTIONED THIS.
THIS IS ALSO GOING TO INCLUDE A MAINTENANCE OF OUR PARKING GARAGES.
IS THAT CORRECT? BECAUSE I KNOW SOME OF OUR PARKING GARAGES NEED HELP AND MAINTENANCE RIGHT NOW.
[01:55:01]
SO ONE OF OUR BIG OPERATING EXPENSES IS MAINTENANCE OF OUR FACILITIES.
IT IS A 24-HOUR FACILITY, OPEN 365 DAYS A YEAR.
AND WE ARE PROPOSING SOME CAPITAL IMPROVEMENTS THIS YEAR TO THOSE GARAGES.
THAT WILL BE IN AREAS, EITHER REPAIRING AND REPLACING, UPGRADING ELEVATORS, LIGHTING, SECURITY CAMERAS, PAINTING AND STRIPING, THINGS LIKE THAT.
>> VIAGRAN: AND REMIND ME THE HEMISFAIR PARKING LOT, SURFACE PARKING LOTS, ARE THOSE GOING INTO THIS PARKING FUND? OR DO THEY GO TO HEMISFAIR?
THERE'S TWO LOTS, THE MARTINEZ LOTS AND ALAMO LOTS.
THOSE SMALL SURFACE PARKING LOTS, THAT REVENUE GOES TO --
>> VIAGRAN: AND HOW MUCH ARE THEY GETTING?
>> VIAGRAN: IF YOU WOULD FOLLOW UP AND GIVE ME THAT INFORMATION.
>> THEY DO GIVE US SOME FOR OPERATING EXPENSES, BUT I'LL GET THAT TO YOU.
>> VIAGRAN: FOR THE PARKING ENFORCEMENT, THESE 26 OFFICERS.
YOU SAID THAT THEY'RE ALSO DOING DOCKLESS VEHICLE ENFORCEMENT.
ARE THEY ALSO STOPPING THE PEOPLE AS THEY'RE RIDING THESE VEHICLES ON THE SIDEWALK?
SO THIS IS SPECIFICALLY TO CORRECT PARKING VIOLATIONS.
>> AND THESE 26 OFFICERS ARE NOT SPECIFICALLY FOR SCOOTERS.
WE DO HAVE FOUR TEMPORARY EMPLOYEES RIGHT NOW THAT ACTUALLY DO SCOOTER CORRECTIONS.
SO THAT'S KIND OF MOVING THINGS OUT OF THE WAY.
IF ENFORCEMENT IS REQUIRED, THEN THEY WILL CALL AN ENFORCEMENT OFFICER TO COME OVER.
>> VIAGRAN: THANK YOU VERY MUCH.
AND I SEE OUR BICYCLE OFFICERS OVER HERE THAT GET TO STOP ALL THOSE PEOPLE ON THE SIDEWALKS.
AND THEN FINALLY FOR THE MARKET SQUARE REVENUE AND THIS 6,800 PER DAY PLAZA RENTAL FEE.
YOU KNOW, Y'ALL WERE TALKING ABOUT EMBEDDING EQUITY.
AND BECAUSE THIS IS NEW, I HAVE CONCERNS ABOUT WHAT KIND OF IMPACT THIS IS GOING TO HAVE ON THE PROGRAMMING AT THE MARKET SQUARE AND OUR AUTHENTIC NATURE OF THE MARKET SQUARE.
DID YOU GO THROUGH THIS -- DID YOU TALK TO THE TENANTS THROUGH THIS PROCESS ABOUT THIS PLAZA RENTAL FEE?
AND THIS FEE WILL PRIMARILY APPLY TO OUTSIDE EVENT PRODUCTIONS THAT ARE COMING IN TO MARKET SQUARE, LIKE THE TEJANO MUSIC AWARDS FESTIVAL.
SO THESE ARE REALLY FOR REALLY LARGE EVENTS THAT ARE USING THE ENTIRE FOOTPRINT OF MARKET SQUARE.
WE HAVE A FEE FOR EACH INDIVIDUAL KIND OF AREA WITHIN MARKET SQUARE, BUT WE DON'T HAVE A FEE FOR USING THE ENTIRE.
>> VIAGRAN: I'M JUST GOING TO SAY THIS.
THIS IS MY CONCERN THAT I SAID THAT I WAS CONCERNED ABOUT SOCIAL REGEARING OF THE MARKET SQUARE.
AND THAT IF WE ARE A NEW CHARGE OF $6,800 ON THIS TEJANO FESTIVAL, OF PEOPLE GATHERING AND USED TO LISTENING TO TEJANO HERE AT THE MARKET SQUARE AND NOW WE HAVE $6800 ON THIS, I'M CONCERNED THAT WE ARE NOW SETTING A PRECEDENT OF THIS SOCIAL REENGINEERING THAT'S HAPPENING, AND THAT IS MY CONCERN.
SO I JUST NEEDED TO MAKE THAT -- I ALSO WANT TO KNOW WHAT DO THOSE TENANTS WHO WOULD NOW BE CHARGED WITH THIS -- OBVIOUSLY, YOU DON'T WANT TO BE HIT UP WITH A FEE.
>> THIS FEE WOULDN'T BE CHARGED TO THE TENANTS.
THIS WOULD BE CHARGED TO WHOEVER IS PRODUCING THE EVENT.
>> AND IT WOULD GO INTO THAT ENTERPRISE FUND.
THE TENANTS WOULD BENEFIT -- RIGHT NOW WE HAVE TO SUBSIDIZE THOSE EVENTS BY USING MARKET SQUARE FUNDS INSTEAD OF DOING THINGS THAT WE COULD DO AS FAR AS MAINTENANCE AND BIGGER PROJECTS.
>> VIAGRAN: I JUST WANT TO TAKE NOTE THAT I'M NOT COMFORTABLE WITH THIS FEE RIGHT HERE FOR THOSE -- FOR THE SOCIAL REENGINEERING THAT MAY HAPPEN OR WHAT THIS IS SETTING UP THAT WE COULD PUSH GROUPS OUT.
SO THAT'S WHAT I WANTED TO MAKE CLEAR.
>> MAYOR PRO TEM: THANK YOU, COUNCILWOMAN VIAGRAN.
JUST A REMINDER TO MY COUNCIL COLLEAGUES, WE HAVE ABOUT 35 MINUTES.
COUNCILWOMAN JADA ANDREWS-SULLIVAN.
>> SULLIVAN: THANK YOU, MAYOR.
THIS IS FOR ECONOMIC DEVELOPMENT.
SO MY QUESTION IS IN REFERENCE TO SECOND CHANCE INITIATIVES WITHIN THE ECONOMIC DEVELOPMENT WHEN IT COMES TO CONTRACTING LICENSES, EQUITY ACROSS THE BOARD AS IT RELATES TO THOSE SMALLER BUSINESSES COMING IN TO GETTING CONTRACTS FOR THE CITY.
AND THEN WHAT OTHER OPPORTUNITIES, WHAT OTHER PROGRAMS HAVE BEEN GENERATED TO HELP OUT WITH THOSE ECONOMICALLY-DISADVANTAGED AREAS
[02:00:02]
AND HOW THAT IS COMING INTO PLAY UNDER THIS DEVELOPMENT.>> SO WHAT WE TRY TO SUPPORT IS THAT -- WE TRY TO ENCOURAGE BUSINESSES TO GET CERTIFIED AS SMALL, WOMEN -- WHATEVER THEY'RE ELIGIBLE FOR BECAUSE THAT OPENS THEM UP FOR THE OPPORTUNITY TO USE THE DIFFERENT TOOLS AVAILABLE.
WE DON'T HAVE ANY KIND OF SPECIFIC CERTIFICATION FROM A REENTRY PERSPECTIVE, BUT WE DO HAVE A DELEGATE AGENCY, CHRYSALIS, THAT SPECIFICALLY FOCUSES ON PROVIDING SERVICES ASSOCIATED WITH REENTRY INITIATIVES.
>> SULLIVAN: AND THEN AS FAR AS WHEN IT COMES TO THE LOCAL SMALLER BUSINESSES AND THE INCENTIVE PROGRAM AUDIO] HIRING CITIZENS SUCH AS MA HARPERS.
WOULD THEY BE ELIGIBLE FOR ANY OF THESE INCENTIVE PROGRAM?
>> SO THE WAY THAT OUR TAX ABATEMENT PROGRAM IS SET UP NOW THERE'S SPECIFIC FOCUS TO HIRE WITHIN CERTAIN POPULATIONS OR CERTAIN GEOGRAPHIES.
SO, YES, THERE IS EMPHASIS PLACED THERE.
>> MAYOR PRO TEM: THANK YOU, COUNCILWOMAN ANDREWS-SULLIVAN.
COUNCILWOMAN SHIRLEY GONZALES.
YOU DIDN'T MENTION THESE BLOOMBERG GRANTS IN YOUR PRESENTATION.
>> THAT WAS MENTIONED ON SLIDE -- LET'S SEE.
AND SO BASICALLY THOSE ARE -- WE'RE FOCUSING ON EIGHT STRATEGIES RIGHT NOW WITH THE BLOOMBERG AMERICAN CITIES CLIMATE CHALLENGE TOO MANY.
SO THE AMERICAN CITIES CLIMATE CHALLENGE IS THE BLOOMBERG GRANT.
I THOUGHT THAT WAS REALLY SIGNIFICANT AND WAS SURPRISED YOU HADN'T MENTIONED IT.
THAT'S ALL THE QUESTIONS I HAD FOR YOU .
ANOTHER QUESTION THAT I HAVE FOR JACKS.
REGARDING THE PARKING -- I KNOW IN MY TRANSPORTATION COMMITTEE I'VE ASKED FOR AN OVERVIEW OF THE PARKING.
>> GONZALES: AND I KNOW THAT -- I'M SORRY.
ACTUALLY, IT CAME FROM COUNCILWOMAN SANDOVAL ASKING FOR THAT TO COME THROUGH THE COMMITTEE, AND I REQUESTED IT.
BUT I HAVE A LOT OF QUESTIONS AND CONCERNS ABOUT THE PARKING.
I'VE ASKED FOR THIS -- IN FACT, ERIK, I MENTIONED THIS AT THE RETREAT THAT I WANTED TO UNDERSTAND BETTER THE PARKING FUND AND WHY THAT BECAME AN ENTERPRISE FUND.
I'M NOT SURE WHERE WE'RE GOING TO GET THAT PRESENTATION.
IF THAT COMES IN THE TRANSPORTATION COMMITTEE.
BECAUSE I SUSPECT THOSE FUNDS COULD BE USED DIFFERENTLY.
YOU KNOW, I THINK I ASKED FOR WHAT WAS THE PURPOSE OF THAT TO BECOME AN ENTERPRISE FUND.
I ASKED THIS A COUPLE OF YEARS AGO.
AND IF IN FACT THE FUNDS HAVE TO BE USED TO MAINTAIN PARKING.
>> THE PARKING FUND WAS ESTABLISHED AS AN ENTERPRISE FUND IN 1980, SO IT'S BEEN THE FUND FOR QUITE A WHILE.
AND IT WAS ESTABLISHED TO -- SO THAT THOSE EXPENDITURES ASSOCIATED WITH OPERATING AND MAINTAINING THE GARAGES WOULD COME FROM THAT REVENUE.
SO IT IS SET UP AS AN ENTERPRISE FUND.
>> GONZALES: BUT IT WAS ALSO ONE OF THOSE THINGS THAT WAS BY ORDINANCE.
OR IT WAS A RECOMMENDATION BY THE COUNCIL.
THAT'S SOMETHING THAT WE COULD UNDO IF WE FELT THAT THE MONEY COULD BE BETTER SPENT, FOR EXAMPLE, ON CONNECT SA OR THAT PERHAPS WE COULD USE THAT FOR TRANSPORTATION OR SOMETHING ELSE.
IT COULD BE PART OF THE GENERAL FUND.
IT DOESN'T HAVE TO GO TO THAT, IF I REMEMBER CORRECTLY.
>> AND LAST YEAR YOU ALL DID ALLOCATE SOME OF THOSE FUNDS TO PAY FOR THE ADVANCED TRANSPORTATION DEMAND POSITION THAT'S IN TCI.
SO THAT WOULD BE AN EXAMPLE WHERE YOU HAVE DONE THAT BEFORE.
>> GONZALES: SO I WOULD LIKE TO GET ALL THE POTENTIAL AND SCOPE OF HOW WE ADDRESS PARKING IN THAT COMMITTEE MEETING BEFORE WE MAKE ANY DECISIONS ABOUT HOW TO UTILIZE THIS FUND.
YOU MENTIONED THAT THERE WAS MONEY LEFT OVER BUT YOU DIDN'T SAY WHAT IT WAS.
WHAT WAS YOUR -- YOU SAID THERE WAS A RESERVE BUT YOU DIDN'T SAY WHAT THE RESERVE WAS.
>> SO THERE'S AN OPERATING RESERVE THAT WILL BE ESTABLISHED.
AND SO THAT WILL -- BECAUSE IT IS AN ENTERPRISE FUND AND IS A REVENUE-BASED FUND, SO THERE MAY BE TIMES WHEN REVENUE IS NOT SO GOOD AND WE NEED TO -- BUT WE STILL HAVE TO PAY FOR MAINTENANCE OF THOSE FACILITIES.
PAY FOR THE AMBASSADORS TO RUN THOSE FACILITIES.
>> GONZALES: BUT HOW MUCH IS THERE NOW?
>> SO THERE'S NOT A SPECIFIC REVENUE -- I'M SORRY, RESERVE FUND NOW.
SO WE ARE PROPOSING A RESERVE FUND.
[02:05:01]
>> GONZALES: HOW MUCH IS IN THE PARKING FUND?
>> THERE'S A FUND BALANCE OF $13.3 MILLION.
>> GONZALES: THAT'S WHAT I WAS LOOKING FOR.
>> SO THE FUND BALANCE IS AT $1.8 MILLION.
SO WE DO HAVE A RESERVE OF THREE MONTHS OF OPERATING EXPENSES.
AND THAT RESERVE IS ABOUT $2.1 MILLION.
>> GONZALES: SO I RECOGNIZE THERE'S A CAPITAL EXPENSE THAT HAS TO GO WITH MAINTAINING FACILITIES.
THIS IS WHY I HAVE ASKED A NUMBER OF TIMES ABOUT THE FACILITIES THAT WE MAINTAIN.
THAT'S, OBVIOUSLY, A FACILITY THAT WE HAVE TO MAINTAIN THROUGH THIS ENTERPRISE FUND.
BUT I JUST WONDER IF THAT CAN BE DONE DIFFERENTLY.
I KNOW THAT MANY OF US WOULD LIKE TO SEE A -- WELL, I SHOULD SPEAK FOR MYSELF.
I WOULD LIKE TO SEE US SPEND LESS ON PARKING AND MORE ON TRANSPORTATION OPTIONS.
AND I THINK THIS IS A WAY THAT WE COULD DO THAT WITHOUT NECESSARILY CREATING ANOTHER FEE THAT WOULD BE THEN FORCED ON ALL OF OUR CONSTITUENTS.
SO IT WOULD -- SO I HOPE THAT WE HAVE THAT DISCUSSION IN OUR COMMITTEE MEETING AND THAT WE CAN HAVE THAT, ERIK, BEFORE WE MAKE ANY COMMITMENTS ON HOW WE DEAL WITH THIS PARKING FUND.
I THINK THERE'S A, PERHAPS, DIFFERENCE OF OPINIONS ON THE COUNCIL OR DIFFERENT MOTIVATION THAT THERE WAS IN 1980 WHEN WE ESTABLISHED THIS FUND.
AND PERHAPS IT COULD BE SPENT BETTER.
SO COULD WE -- ERIK, CAN YOU GIVE US AN IDEA HOW WE CAN HAVE THAT DISCUSSION AND WHAT FORMAT.
DO WE DO IT THROUGH COMMITTEE BUT STILL HAVE AN OPPORTUNITY TO ADDRESS IT BEFORE WE ADOPT THE BUDGET?
>> WALSH: SOME OF THAT -- WE HAVE A FOLLOW UP THAT WE'VE GOT TO PROVIDE BACK TO THE COUNCIL AS A RESULT OF THE WORK SESSIONS THIS WEEK.
SO I THINK WE INITIALLY START THERE AND GET THAT INFORMATION BACK TO YOU BY END OF WEEK SO THAT YOU'VE GOT SOME OF THE HISTORY AND BACKGROUND.
YOU KNOW, THERE ARE A NUMBER OF ITEMS IN THE PROPOSED BUDGET WHERE WE LOOKED TO HAVE EXPENSES FUNDED THROUGH THE PARKING FUND RATHER THAN THE GENERAL FUND.
THE CONGESTION MITIGATION AIR QUALITY GRANT WHERE WE NEEDED TO COME UP WITH A LITTLE OVER $5 MILLION FOR OUR MATCH IS BEING FUNDED BY -- PART OF IT IS BEING FUNDED THROUGH PARKING FUND.
IS BALANCE AND THE TRICK IS THAT THE REVENUE COLLECTED FOR THE PARKING FUND IS FROM PARKING RATES ON THE STREET OR IN THE GARAGES.
AND WE HAVE TO UTILIZE THAT MONEY TO SUPPORT -- WE CAN'T USE THAT MONEY TO GO PAY FOR POLICE OFFICERS OR FIREFIGHTERS OR STUFF LIKE THAT.
>> GONZALES: BUT THAT'S BECAUSE THE COUNCIL DECIDED THAT.
THE PART OF THAT IS TRYING TO FIGURE OUT WHAT ARE THE LEGAL REQUIREMENTS.
ONCE WE'VE COLLECTED THAT MONEY, WE'VE GOT IT HERE GOING FORWARD.
BUT I THINK YOU'RE RAISING A LARGER ISSUE OF WHAT POTENTIAL CHANGES COULD THE COUNCIL MAKE DOWN THE ROAD.
AS LONG AS WE'RE RESOLVING -- WE HAVE SOME SELF-SUPPORTING DEBT THAT IS FUNDED THROUGH THE PARKING FUND.
SO I THINK WE OUGHT TO INITIATE SOME OF THAT INFORMATION BACK TO YOU THIS WEEK AND THEN FIGURE OUT HOW TO GET IT TO YOU AS SOON AS POSSIBLE, THROUGH EITHER THE TRANSPORTATION COMMITTEE OR THE FULL COUNCIL.
WELL, I WOULD ANTICIPATE THAT WE COULD HAVE THAT BEFORE WE MAKE ANY DECISIONS ON THE BUDGET.
SO I'M NOT SURE WHEN THE TRANSPORTATION -- NEXT TRANSPORTATION COMMITTEE MEETING IS, IF IT'S BEFORE OR AFTER WE ADOPT THE BUDGET.
>> WALSH: RAZI WAS SAYING IT IS AFTER.
WE CAN WORK WITH YOU IF YOU WANT TO HAVE A SPECIAL MEETING.
>> GONZALES: YEAH, THANK YOU VERY MUCH FOR THAT.
AND THANK YOU VERY MUCH, JOHN.
ALSO, WITH ALEX, I KNOW THAT WE HAVE SOME TARGETED INDUSTRIES, AND THAT WAS ALSO BY COUNCIL RECOMMENDATION.
WHEN DID WE MAKE THOSE RECOMMENDATIONS THAT WE WOULD HAVE TARGETED INDUSTRIES?
>> IT ACTUALLY STEMS FROM OUR PARTNERSHIP WITH THE ECONOMIC DEVELOPMENT FOUNDATION.
AND THAT'S PART OF WHAT THE CURRENT STRATEGIC PLANNING PROCESS IS VALIDATING, TO MAKE SURE THAT THOSE ARE STILL IN FACT THE VISTA WE SHOULD BE TARGETING BASED ON OUR ASSETS.
>> GONZALES: AND THAT'S ONGOING?
>> THAT'S TAKING PLACE RIGHT NOW BECAUSE WE'RE UPDATING THE STRATEGIC PLAN.
I WOULD LIKE TO SEE HOSPITALITY INCLUDED IN THERE SOMEWHERE.
IT'S NEVER MADE SENSE TO ME THAT HOSPITALITY IS THE THIRD NUMBER ONE JOBS INDUSTRY IN THE CITY
[02:10:01]
AND YET IT'S NOT A TARGETED INDUSTRY.I RECOGNIZE IT HAS TO DO WITH JOBS, BUT IF WE'RE HAVING AN ALTERNATIVE STRATEGY TO GIVE WORKFORCE DEVELOPMENT INCENTIVES, THE HOSPITALITY INDUSTRY WOULD BE A PERFECT EXAMPLE OF THAT.
SO IF WE COULD FIND A WAY TO INCLUDE THAT IN ONE OF OUR TARGETED INDUSTRIES, IT COULD BE REALLY HUGE FOR US HERE IN SAN ANTONIO, GIVEN THE NUMBER OF PEOPLE WHO WORK IN THE INDUSTRY.
>> I WILL DEFINITELY HAVE A CONVERSATION WITH THE CONSULTANTS WORKING ON THE PLAN TO SEE WHAT THEIR FEEDBACK IS AND HOW THEY COULD DO SOMETHING LIKE THIS, HOW THEY WOULD RECOMMEND IT.
I THINK THE REST ARE MORE GENERAL QUESTIONS ABOUT THE OPPORTUNITY ZONES THAT I KNOW WE'LL HAVE A SEPARATE BRIEFING ON THOSE, PERHAPS IN OUR ECONOMIC DEVELOPMENT COMMITTEE.
>> MAYOR NIRENBERG: THANK YOU, COUNCIL MEMBER GONZALES.
>> SANDOVAL: THANK YOU VERY MUCH, MAYOR.
THANK YOU VERY MUCH FOR YOUR PRESENTATION AND THE WORK THAT ALL OF YOUR STAFF HAS DONE, INCLUDING ROD AND GPA IN PREPARING THE SUSTAINABILITY -- I'M SORRY.
THE CLIMATE ACTION PLAN, CLIMATE READY SA, AND WE'LL HEAR MORE ABOUT THAT TOMORROW.
I'M GLAD YOU HIGHLIGHTED CMAC FUNDS.
TELL US HOW MUCH ARE WE RECEIVING IN GRANTS TOTAL THAT WE'RE ABLE TO INFUSE INTO THE SUSTAINABILITY BUDGET.
>> SO FOR CMAC FUNDING -- IF I MIGHT BACK UP.
WHERE IS THIS? SO WE ARE RECEIVING A TOTAL OF -- FOR BOTH PROGRAMS COMBINED, $300,000.
BUT THAT INCLUDES ABOUT $60,000 IN LOCAL MATCH.
IN THE UPCOMING POLICIES THAT YOU'RE GOING TO WORK ON, THE SLIDE WHERE ALL THE SQUARES ARE, THERE'S A SQUARE THAT SAYS UPDATE TO THE COSA GREEN FLEET PROCUREMENT POLICY.
CAN YOU TELL ME DO WE ALSO HAVE A GREEN PROCUREMENT POLICY?
>> WE HAVE AN ENVIRONMENTALLY PREFERABLE PURCHASING POLICY.
I BELIEVE AS WE SPEAK IT'S BEING REVIEWED AND WE'RE PROVIDING INPUT INTO THAT AS WELL.
IT WOULD BE GREAT TO GET AN UPDATE ON THAT COMMITTEE.
AND MY NEXT QUESTION IS FOR CCDO.
SO I AGREE WITH THE COUNCILWOMAN THAT I WOULD REALLY LIKE HER COMMITTEE TO HAVE -- WHICH OF COURSE I'M ON, SO I'M ADVOCATING FOR IT.
FOR HER COMMITTEE TO HAVE AN OPPORTUNITY TO WEIGH IN ON HOW THE EXPENDITURES WILL OCCUR FOR THE PARKING INITIATIVES.
SO, AGAIN, JUST TO CLARIFY, THAT WILL TAKE PLACE BEFORE THE BUDGET GETS ADOPTED.
PART OF JOHN'S PRESENTATION TALKS ABOUT PARKING INITIATIVES THAT WOULD OCCUR IN THIS FISCAL YEAR.
WILL THOSE BE DETERMINED WHEN WE ADOPT THE BUDGET? OR IS THERE OPPORTUNITY FOR THE COMMITTEE TO WEIGH IN FOR THE TRANSPORTATION COMMITTEE TO DIRECT HOW THAT WILL BE SPENT?
>> WALSH: SO MY RECOMMENDATION IS THAT THAT BE DONE AT THE FULL COUNCIL LEVEL.
AND WE WERE JUST TALKING OVER HERE TRYING TO FIGURE OUT ON THE BUDGET WORK SESSION WHERE WE CAN BRING THIS ITEM BACK FOR THE FULL COUNCIL TO HEAR.
AND SO WE'RE GOING TO WORK TO DO THAT.
SO THAT WOULD BE MY RECOMMENDATION.
>> SANDOVAL: SO YOU'RE SAYING -- SO YOU DO NOT RECOMMEND FIRST HAVING A DISCUSSION AT TRANSPORTATION COMMITTEE.
MY PREFERENCE, I THINK, WOULD BE TO HAVE IT HERE WITH THE FULL COUNCIL AND HAVE A SPECIAL WORK SESSION JUST TO DIG DEEPER TO COUNCILWOMAN GONZALES' QUESTIONS ON THE PARKING FUND AND WE FOLD THAT INTO OUR WORK SESSION AND HAVE IT HERE.
DEPENDING ON WHAT THAT FULL COUNCIL DISCUSSION IS, THERE MAY BE SOME POLICY-RELATED ISSUES THAT YOU WILL WANT TO DECIDE TO SEND TO THE TRANSPORTATION COMMITTEE AND LET THEM WORK THROUGH THOSE POLICY ITEMS AND BRING THEM BACK TO COUNCIL DURING THE YEAR.
BUT I THINK WE OUGHT TO INITIATE THAT HERE WITH THE FULL COUNCIL.
>> WALSH: DO YOU HAVE A CONCERN?
I MEAN, I KNOW WE HAVE A TIMELINE IN TERMS OF ADOPTING THE BUDGET AND BRINGING IT BACK TO FULL COUNCIL GIVES US THE OPPORTUNITY TO PERHAPS AMEND THE ORDINANCE THAT DEFINES THE --
[02:15:02]
WHAT DO YOU CALL IT FUND? THE ENTERPRISE FUND.>> SANDOVAL: MODIFICATION OF THE ENTERPRISE FUND HAS TO TAKE PLACE AT FULL COUNCIL.
I WAS JUST CONCERNED ABOUT ACTUALLY THE DIRECTION OF WHERE WE WANT TO GO WITH PARKING IN THE CITY OR DOWNTOWN.
I FEEL THAT SOUNDS APPROPRIATE TO DISCUSS AT COMMITTEE AND HAVE THE COMMITTEE COME FORWARD WITH THE RECOMMENDATION BEFORE THE WHOLE COUNCIL, IF IT'S A POLICY DECISION.
AND I THINK THE POLICY DECISION IS PROBABLY LARGER AUDIO].
>> WALSH: THAT'S A MUCH LARGER LONG-TERM ISSUE.
AND CERTAINLY IS UNDER THE PURVIEW OF THE COMMITTEE AND THE FULL COUNCIL.
WHAT WE HAVE BEFORE US OVER THE NEXT COUPLE OF WEEKS OR A MONTH IS THE ATTRIBUTES THAT ARE INCLUDED IN THE PROPOSED BUDGET.
THAT CONVERSATION ABOUT THE BUDGET, THAT'S WHAT I'M RECOMMENDING WE COME BACK WITH A WORK SESSION.
THE LARGER POLICY ISSUES, DEFINITELY.
THAT'S PROBABLY MULTIPLE CONVERSATIONS AT ALL KINDS OF LEVELS.
WELL, IN ADVANCE OF OUR FOLLOW-UP TO THIS, WOULD IT BE POSSIBLE TO GET DETAILS ON WHAT THESE CAPITAL IMPROVEMENTS AND THE ADDITIONAL PARKING SUPPLY IS?
>> SANDOVAL: THAT WAY I CAN BE PREPARED.
SO, AS YOU PROBABLY HEARD ME SAY, I DON'T REALLY SUPPORT SUBSIDIZING PARKING AT RATES BELOW MARKET RATE.
HOWEVER, EXCEPT IN ONE CASE AND THAT'S WHEN WE HAVE CITIZENS WHO COME TO PARTICIPATE IN OUR PUBLIC MEETINGS WHO ARE AT A DISADVANTAGE WHEN WE HAVE, YOU KNOW, PAID LOBBYISTS OR HIRE DEVELOPERS COMING HERE.
SO I PREVIOUSLY REQUESTED THAT STAFF EVALUATE THE PROGRAM TO PROVIDE VALIDATED PARKING FOR THAT.
WE WERE TOLD WE HAD TO WAIT UNTIL THE PARKING FEES WERE SET SOMEHOW.
I WOULD LIKE TO SEE THAT INTEGRATED INTO THIS BUDGET, SOME PROGRAM FOR THAT.
OBVIOUSLY WE HAD AN OPPORTUNITY WHEN WE TOOK OVER THE FROST TOWER, BECAUSE OF THE PROXIMITY OF THAT PARKING GARAGE.
AND SO WE HAVE BEEN WORKING WITH OUR GPA OFFICE TO TALK ABOUT HOW CAN WE ACCOMMODATE CITIZENS WHO ARE ATTENDING VARIOUS COMMISSION OR COUNCIL MEETINGS.
AND SO WE WERE WORKING THROUGH A PLAN ON HOW TO ACCOMMODATE THAT.
SOME OF IT IS EASY, BECAUSE IF IT'S IN THE EVENING THERE'S PLENTY OF PARKING AVAILABILITY.
IT'S DAYTIME MEETINGS THAT ARE A CHALLENGE.
BUT WE'RE WORKING THROUGH THAT, YES.
>> SANDOVAL: SO, WILL THAT REQUIRE A CHANGE TO THE PARKING RATES? OR CAN YOU DO IT WITHOUT A CHANGE TO THE PARKING RATES? THE REASON I ASK IS BECAUSE WE'RE GOING TO ADOPT THE PARKING RATES WHEN WE ADOPT THE BUDGET, SO THAT NEEDS TO BE FIGURED OUT.
>> YOU AND CITY COUNCIL HAVE AUTHORIZED THROUGH ERIK AND ME TO DISCOUNT PARKING FOR VARIOUS REASONS.
WELL, SO ETA ON A PROGRAM LIKE THAT?
>> I'LL GET BACK WITH GPA TO CONTINUE THAT CONVERSATION ABOUT -- WE TALKED ABOUT CITIZENS TO BE HEARD, FOR EXAMPLE.
>> SO I THINK WE HAVE A DRAFT THAT WE CAN IRON OUT AND GET BACK WITH YOU QUICKLY ON.
>> SANDOVAL: REALLY GLAD TO HEA.
>> MAYOR NIRENBERG: THANK YOU, COUNCIL MEMBER SANDOVAL.
>> ROCHA GARCIA: SIMILAR TO COUNCILWOMAN'S QUESTION, I JUST WANTED TO DOUBLE-CHECK IT WASN'T GOING TO BE AFFECTING ANY NONPROFITS OR ANY ORGANIZATIONS RAISING SCHOLARSHIP FUNDS.
I KNOW WE'RE TECHNICALLY BUDGETED FOR ABOUT FOUR DAYS OF USE IN THE REVENUE AMOUNT THAT WE CALCULATED ON PAGE 121.
BUT IF IT DOES AFFECT NONPROFITS, IS THERE ANY WAY WE CAN CONSIDER A NONPROFIT RATE?
DO WE HAVE A NONPROFIT RATE? I CAN'T REMEMBER.
>> ROCHA GARCIA: I DIDN'T SEE THAT ON HERE, BUT IF YOU DID, THAT'S GREAT.
>> CURRENTLY WE ALREADY DO PROVIDE A WAIVER FOR NONPROFITS.
WE CAN BE SPECIFIC IN THIS LANGUAGE.
THIS FEE IS REALLY CREATED TO COVER OUR COSTS.
I USE AN EXAMPLE OF THE FINAL FOUR.
FINAL FOUR WERE TO COME IN, THEY COULD LEASE THE ENTIRE PLAZA.
RIGHT NOW WE'RE ONLY AUTHORIZED TO CHARGE THEM $3,400.
WE WOULD LIKE TO CHARGE THEM THE FULL RATE TO RECOVER OUR COSTS BUT WE STILL HAVE THE ABILITY TO PROVIDE WAIVER OF FEES.
WE CAN BE SPECIFIC IN THAT LANGUAGE TO ALLOW FOR WAIVERS FOR NONPROFIT AND TENTATIVE INITIATIVE EVENTS.
>> ROCHA GARCIA: I THINK THAT WOULD BE HELPFUL.
MY NEXT QUESTION IS ON PAGE 117.
IT LOOKS LIKE -- SO THERE WAS A 50 CENTS CHANGE FOR THE TICKETS TO THE TOWER, ET CETERA.
MY CONCERN, AND I KNOW THAT THERE'S A DEMAND FOR MARIACHI, BUT IT WAS AN INCREASE OF $11.50.
WHILE I WHOLEHEARTEDLY BELIEVE
[02:20:02]
THAT THERE'S A DEMAND FOR MARIACHIS WHEN TOURISTS COME TO SAN ANTONIO, I JUST WANT TO MAKE SURE, OR I WANT TO ASK, HOW DO T THEY ALSO BENEFIT FROM THE $11.50?>> THIS IS SPECIFICALLY, YOU'RE SPEAKING TO THE MARIACHI BARGE.
THERE'S A SPECIFIC TICKET THAT AN INDIVIDUAL CAN PURCHASE TO RIDE ON A MARIACHI BARGE.
THIS IS A REQUEST THAT THE OPERATOR HAS BROUGHT TO US INDICATING THAT IT'S BECAUSE OF THE COST OF THE MARIACHI TO HIRE THE MARIACHI BAND, SO THIS WILL IN FACT HELP PAY FOR THE MARIACHI BAND.
THE NEXT QUESTION IS FOR ALEX ON ECONOMIC DEVELOPMENT.
AND WHILE ALEX COMES UP, I ALSO WANT TO TAKE THE OPPORTUNITY TO THANK THOSE REPRESENTING.
ALEX, I HAVEN'T SEEN THIS SINCE I'M A NEW COUNCIL MEMBER, BUT I WOULD HIKE TO SEE SOME OF THE ROI ON SOME OF THE LAST FEW PROJECTS WE'VE INCENTIVIZED THROUGH THE LAST FEW PROGRAMS. IF YOU COULD GIVE US THE LAST FEW YEARS, I WOULD APPRECIATE IT.
ON PAGE 357 OF THE BUDGET, THIS IS JUST A REQUEST FOR A FURTHER BRIEFING LATER SO WE DON'T GET INTO THIS HERE, BUT I'D LIKE TO KNOW THE EXTENT OF WHAT BIOMED SA WILL DO FOR THE CONTRIBUTION IN CYBERSECURITY FOR THE $50,000 CONTRIBUTION.
BECAUSE I DON'T WANT TO TAKE UP TOO MUCH TIME ANYMORE.
THAT'S IT FOR ECONOMIC DEVELOPMENT.
DOUG, I HAVE ABOUT FOUR QUESTIONS FOR YOU.
YOU DON'T HAVE TO ANSWER HERE.
BUT ON PAGE 334 OF THE BUDGET, WE HAVE DEDICATED AN INCREASE OF ABOUT $303,576.
I UNDERSTAND $235,000 IS GOING TO THE COMMUNICATIONS INITIATIVE AND 50,000 TO THE ECONOMIC ANALYSIS.
THE $18,000 THAT ARE LEFT OVER, DO YOU HAVE A SPECIFICALLY ALLOCATED PROGRAM FOR THAT?
>> I'LL HAVE TO DOUBLE-CHECK ON THAT AND GET BACK TO YOU.
I WOULD LOVE TO SEE WHO'S ON THE CLIMATE EQUITY COMMITTEE.
AGAIN, I'M NEW, SO I'M NOT ENTIRELY SURE WHO IS REPRESENTED.
BUT I'VE BEEN TRYING TO KEEP UP WITH MY COUNCIL COLLEAGUES AND I'VE BEEN READING A LOT OF THE THINGS THAT THE PANEL ON CLIMATE CHANGE HAS PUT OUT.
THEIR MOST RECENT REPORT CAME OUT ON AUGUST THE 9TH.
THEY'RE TALKING ABOUT STAKEHOLDER.
THE STAKEHOLDERS SITTING AT THE TABLE, EVERY TYPE OF STAKEHOLDER, SPECIFICALLY THEY'RE LOOKING AT, ALSO, I WOULD LIKE TO SEE WHAT WE'RE DOING TO REDUCE THE GAPS IN SOME OF THESE INEQUITIES THAT HAVE HAPPENED.
>> ROCHA GARCIA: AGAIN, ANYTHING THAT YOU CAN GIVE ME WITH THAT LATER, I WOULD GREATLY APPRECIATE IT.
AND HOW WE'RE ENABLING FINANCIAL MECHANISMS SO WE DON'T KEEP LEAVING PEOPLE BEHIND AS FAR AS -- IN THE REGARD OF SUSTAINABILITY.
AND THEN MS, DO YOU WORK WITH ECONOMIC DEVELOPMENT TO INCENTIVIZE BUSINESSES WHO HAVE --
>> YES, WE'RE USUALLY BROUGHT INTO THE LOOP JUST TO MAKE SURE THAT WE'RE COORDINATING, AND I THINK WE'RE CONTINUING TO IB OH VAT, TO DETERMINE IF THERE ARE OTHER OPPORTUNITIES AND RESOURCES WE CAN BRING TO THE TABLE TO GET THOSE TYPES OF PROJECTS THAT I THINK REALLY INCREASE OUR OVERALL COMMUNITY SUSTAINABILITY.
I THINK ONE OF THE THINGS WE HAVE LACKED IS THE FOCUS ON FOOD AND SECURITIES.
>> ROCHA GARCIA: I WOULD LOVE TO BE A PART OF THAT.
DISTRICT 4 IS ONE OF YOUR MOST -- ONE OF OUR MOST VULNERABLE POPULATIONS.
SO WE HAVE A COUPLE OF ZIP CODES.
ELECTRIC VEHICLES, CAN YOU TELL ME HOW MANY ELECTRIC VEHICLES, OR WHAT PERCENTAGE OF OUR VEHICLES ARE IN SAN ANTONIO ARE ELECTRIC?
>> IN TERMS OF SAN ANTONIO, I ACTUALLY HAVE THAT.
WE HAVE CONFIRMED, I BELIEVE -- SORRY ABOUT THAT.
I SHOULD KNOW THIS OFF THE TOP OF MY HEAD.
WE HAVE -- THERE'S ONLY 3,000 IN SAN ANTONIO.
FOR COMPARISON, AUSTIN IS PUSHING UPWARDS OF 7,500.
I'LL RESERVE MY OTHER QUESTIONS FOR LATER.
>> MAYOR NIRENBERG: THANK YOU, COUNCIL MEMBER ROCHA GARCIA.
>> TO YOUR QUESTION, COUNCIL MEMBER ROCHA GARCIA, THE INCREASE IS TO EMPLOYEE COMPENSATION.
>> DOUG, WHY DON'T YOU STAY UP THERE FOR A SECOND, I'LL PICK ON YOU -- I MEAN, I'LL ASK YOU.
[02:25:01]
HAS YOUR DEPARTMENT BEEN WORKING WITH DSD ON THE ELECTRICAL VEHICLE AND SOLAR-READY CODES THAT ARE BEING CONSIDERED?>> YES, SIR, WE'RE AT ALL THOSE MEETINGS.
THE LAST MEETING OF THE WORKING GROUP ARE BUILDING CLIMATE CHALLENGE, CONTRACT EMPLOYEE, PRESENTED BEST PRACTICES RELATED TO EDV AND SOLAR READY.
>> COURAGE: DO YOU THINK IT'S GOING IN THE RIGHT DIRECTION?
>> I THINK WE'RE STILL WORKING TO FIND THAT COMMON GROUND AND DETERMINE WHAT'S THE RIGHT NEXT STEP.
I THINK DSD IS DOING A GREAT JOB, AND WE'RE HOPEFUL WE CAN COME TO SOME POSITIVE RECOMMENDATION.
>> COURAGE: WE SAY WE HAVE 3,000 EVS NOW.
>> ABOUT 140 THAT CPS MANAGES, AND WE'VE BEEN HAVING TROUBLE TO FIND THE PRIVATE STATIONS.
CPS IS DEFINING THEIR ENTIRE SYSTEM, AS ARE WE.
I THINK ONE OF THE THINGS WE'RE LOOKING AT WHEN WE LOOK AT THE TRENDS, IT LOOKS LIKE THE MAJORITY OF THE CHARGING IN THE FUTURE IS GOING TO BE AT THE HOME.
BUT WE NEED TO DETERMINE WHERE THOSE HIGH PEAK OPPORTUNITIES ARE, WHETHER IT'S AT WORKPLACES, ENTERTAINMENT CENTERS.
WE JUST WANT TO MAKE SURE WE'RE KEEPING UP WITH DEMAND AS WE LOOK AT MARKET PROJECTIONS.
>> COURAGE: I THINK ONE OF THE POINTS OF THE NEW BUILDING CODES IS TRYING TO INCORPORATE INTO NEW HOME DEVELOPMENT THE POSSIBILITY OF BEING ABLE TO ADD THOSE CHARGING STATIONS AT HOME WITHOUT A LOT OF ADDITIONAL COST TO THE HOMEOWNER, RIGHT?
>> THE ASSESSMENT HAS SHOWN THAT IT IS SUBSTANTIALLY MORE TO GO BACK AND RETROFIT.
I THINK THE KEY DISCUSSION RIGHT NOW IS, WHAT IS THE APPROPRIATE FIRST STEP TO HAVE A NEW HOMEOWNER TAKE ON -- IF THEY MAY OR MAY NOT USE IT.
I THINK WE'RE TRYING TO FIGURE OUT WHAT'S THAT RIGHT SIZE FIRST STEP.
>> COURAGE: HAS ANYBODY INTRODUCED ANY INFORMATION AS TO WHAT THEY THINK THE PROJECTION IS FOR EV BECOMING A MUCH GREATER MIX IN THE AUTOMOBILE SALES AROUND THE COUNTRY? OR HERE IN TEXAS? OR HERE IN SAN ANTONIO?
>> I CAN GET YOU THAT INFORMATION.
WE HAVE SOME PRELIMINARY DOCUMENTS FROM THE CONSULTANT THAT'S BEEN HELPING US, THAT DOES PROVIDE SOME PROJECTIONS FOR SAN ANTONIO ACTUALLY, LOOKING THROUGH 2030, 2040.
>> COURAGE: IS THAT THE KIND OF YEARS THEY THINK THOSE NUMBERS MAY BE LARGE?
>> I THINK A LOT OF IT DEPENDS ON TECHNOLOGY.
>> MARKETS AND CONSUMER DEMANDS.
JOHN, I HAVE A COUPLE OF QUESTIONS.
DO YOU KNOW WHAT YOU HAVE IN MIND WITH THE CAPITAL IMPROVEMENTS THAT YOU'RE GOING TO BE USING, THE RESERVES FOR OUT OF THE PARKING FUND?
SO FOR -- SPECIFICALLY FOR THE PARKING FACILITIES, WE ARE LOOKING AT UPGRADING OUR SECURITY SYSTEMS. SO A LOT OF THAT HAS TO DO WITH CAMERAS AT THE FACILITIES.
WE HAVE SOME ELEVATORS THAT NEED QUITE A BIT OF MAINTENANCE THAT WE'LL BE SPENDING THAT ON.
LIGHTING IS AN AREA THAT WE FOCUS A LOT ON, AS FAR AS SECURITY.
SO THOSE ARE A -- A LARGE NUMBER OF THAT WILL BE SPENT ON THE IMPROVEMENT OF THE FACILITIES.
>> COURAGE: WHAT IS THE OPPORTUNITY FOR ACQUIRING ADDITIONAL PARKING? HAVE YOU LOOKED AT ANY OF THOSE OPPORTUNITIES ANYWHERE?
>> I THINK WHAT WE'RE LOOKING AT IS REAL ESTATE IS SOMEWHAT SCARCE, SO IT'S HARD TO GO OUT AND BUY PROPERTY TO BUILD A NEW GARAGE, BUT I THINK WE'RE LOOKING AT LEVERAGING SOME OF THOSE DOLLARS IN PARTNERSHIPS WHENEVER THERE'S NEW FACILITIES COMING IN, THE ABILITY TO BE ABLE TO ADD PARKING TO THOSE FACILITIES.
>> I'D LIKE TO ADD, WE DO HAVE FUNDING BUDGETED ABOUT $7.5 MILLION IN THE CAPITAL BUDGET TO HELP WITH THOSE OPPORTUNITIES.
SO ONE EXAMPLE IS THE CONTINENTAL HOTEL PROJECT THAT WE'RE LOOKING TO DO AN AFFORDABLE HOUSING PROJECT.
WE COULD PROVIDE FUNDING TO HELP OVERSIZE OR LEVERAGE THEIR PARKING OPPORTUNITIES, SO WE ARE BASICALLY HELPING FUND THEIR PARKING STRUCTURES.
AND WE'RE USING IT AS DAYTIME PARKING OPPORTUNITIES, AND THEY'RE USING IT AS NIGHT.
THOSE ARE EXAMPLES HOW WE COULD LEVERAGE THOSE REAL ESTATE OPPORTUNITIES IN INCREASED PARKING.
>> COURAGE: HOW ABOUT WORKING MORE WITH TXDOT TO WORK MORE WITH THE OVERNIGHT PARKING AVAILABLE.
WE HEARD FROM CITIZENS A WEEK AGO THE PARKING NOW NEAR UTSA, BUT NOT THAT CLOSE, NEXT TO A BUSINESS THAT'S BEEN IN BUSINESS FOR MANY, MANY YEARS.
THAT PARKING LOT'S BEEN CLOSED FOR THREE OR FOUR YEARS.
IT USED TO LET CARS PARK THERE.
NOW TXDOT ISN'T LETTING THEM PARK THERE FOR ANY REASON.
[02:30:02]
OF OFFICE, FOR THE TRAVELING DOCUMENTS, THINGS LIKE THAT.ANYWAY, THAT WAS AN EXAMPLE OF SOMETHING THAT I SAW THAT IS UNDERUTILIZED.
SO WE CAN LOOK AT THAT SPECIFIC SPACE.
I'M NOT AWARE OF WHO'S CONTRACTING FOR IT.
BUT TXDOT WILL CHARK THE CITY OF SAN ANTONIO, OR IN I ENTITY TO USE THAT PARKING UNDERNEATH THE INTERSTATE.
SO WE HAVE SEVERAL OF THE MULTI-USE AGREEMENTS ALREADY IN PLACE.
BUT OTHER PRIVATE ENTITIES HAVE THEM AS WELL.
WE CAN LOOK AT TXDOT'S PLAN ON THOSE.
>> COURAGE: I WOULD LIKE TO SEE MORE PUBLIC PARKING RATHER THAN PRIVATE PARKING.
I THINK PEOPLE WOULD APPRECIATE IT.
WE WANT TO CONTINUE TO ATTRACT PEOPLE TO COME DOWNTOWN.
CERTAINLY RIDING OTHER WAYS ARE IMPORTANT.
ANYWAY, I WANTED TO SEE IF THAT MONEY COULD GO IN THAT DIRECTION, OR IF WE HAVE ANY OTHER PLANS TO GO IN THAT DIRECTION.
WHAT'S THE STATUS OF THE NEW DEVELOPMENTS GOING INTO LA VAETA, THE RESTAURANTS, THINGS LIKE THAT? HOW FAR ALONG ARE THEY AND WHAT IS THE COST TO COSA FOR THAT?
>> WE HAVE BROKEN GROUND AT MAVERICK PLAZA.
RIGHT NOW, A LOT OF THE PRELIMINARY WORK HAS BEEN COMPLETED.
THAT WAS SOME DESIGN WORK, SOME ARCHAEOLOGICAL WORK.
THEY'RE CURRENTLY OVER THERE NOW TRENCHING FOR UTILITIES.
IT'S BEING FUNDED FROM THE INNER CITY TIRZ.
AND SO -- LET ME SEE IF I CAN GET YOU THE -- IF I HAVE THAT IN MY NOTES.
>> COURAGE: SO NO GENERAL FUND?
>> NO GENERAL FUND DOLLARS, NO, SIR.
>> COURAGE: LAST QUESTION I HAVE, I UNDERSTAND CPS ENERGY IS CONSIDERING SELLING LA VAEDA ASSEMBLY HALL.
ARE WE CONSIDERING ACQUIRING THAT AS A CITY FACILITY? HAVE WE LOOKED INTO THAT?
>> WE DID LOOK INTO THAT, AND WE HAVE MADE A DECISION THAT, NOT TO PURSUE THAT.
>> I THINK WE LOOKED AT IT AND DETERMINED IT WAS A FACILITY THAT WASN'T IN OUR PROGRAMMING, IN THAT AREA.
I THINK IT WAS -- MAYBE LORI CAN ANSWER IT, I'M NOT SURE.
>> I DON'T RECALL WHEN WE LOOKED AT THAT.
BUT CPS IS PUTTING THAT FACILITY ON THE MARKET, THEY'RE GOING TO BE LOOKING FOR FAIR MARKET VALUE FOR THAT.
AND THEY'LL BE LOOKING FOR A PARTNER TO KEEP IT IN EITHER -- ACTUALLY, THEY'RE GOING TO BE LOOKING FOR SOMEBODY TO SELL IT, AND IT HAS TO STAY WITHIN THAT FOOTPRINT, IT CAN'T BE TORN DOWN.
THEY'RE PUTTING IT ON THE MARKET.
THE CITY OF SAN ANTONIO, WE'RE NOT REALLY IN THE BUSINESS OF HANDLING OR DOING EVENT VENUE.
AND WE DON'T HAVE THE FUNDING FOR IT.
>> COURAGE: YOU DON'T THINK THAT WOULD BE AN ASSET, ALONG WITH THE CONVENTION CENTER, PRACTICALLY ACROSS THE STREET AND EVERYTHING? LA VAEDA ITSELF IS SUCH A POPULAR PLACE FOR TOURISM.
>> WE CAN LOOK AT IT AGAIN, BUT IT'S NOT SOMETHING THAT WOULD BE LOOKED AT MANAGING.
[Executive Session]
THANK YOU, COUNCIL MEMBER COURAGE.
WE'RE GOING TO RECESS OUR MEETING.
AND I THINK COUNCILMAN PERRY HE'LL DEFER UNTIL TOMORROW.
WE'LL FIGURE OUT WHEN WE CAN BRING BACK CCEO.
AT THIS TIME WE'RE GOING TO MOVE INTO EXECUTIVE SESSION.
THE TIME IS 4:45 P.M. ON WEDNESDAY, AUGUST 21ST, 2019, WE'LL MEET IN EXECUTIVE SESSION.
THE FOLLOWING: ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.087 (ECONOMIC DEVELOPMENT), THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.072 (REAL PROPERTY), LEGAL ISSUES RELATED TO COLLECTIVE BARGAINING PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071 (CONSULTATION WITH ATTORNEY), LITIGATION MATTERS INVOLVING THE CITY, PENDING OR CONTEMPLATED LITIGATION AND/OR SETTLEMENT OFFERS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071 (CONSULTATION WITH ATTORNEY), LEGAL ISSUES RELATING TO CITY POLICY CONCERNING POLITICAL ACTIVITY AND CITY RESOURCES PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071 (CONSU
* This transcript was compiled from uncorrected Closed Captioning.