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>> PELÁEZ: LET'S GET OUR ROLL CALLED.
>> CHAI WE HAVE A QUORUM. >> PELÁEZ: GREAT. FIRST THING WE NEED TO DO IS APPROVE OUR MINUTES FROM OUR LAST MEETING OF AUGUST 30TH. WE HAVE A MOTION AND A SECOND. ALL THOSE IN FAVOR SAY AYE.
THAT WAS UNANIMOUS. OUR FIRST ITEM -- OH, COUNCILWOMAN CASTILLO -- OH, SHE SAID AYE. OUR FIRST ITEM IS A BRIEFING AND A PROPOSED CONTRACT FOR A LATIN AMERICAN STRATEGIC BUSINESS COORDINATION SERVICES.
SO JUST TO -- BEFORE WE JUMP IN, REMEMBER THIS IS THE ONE THAT WAS ON CONSENT A FEW A SESSIONS AGO AND ASKED THAT WE KICK IT BACK TO THIS COMMITTEE FOR DISCUSSION AND THAT'S WHAT WE'RE DOING TODAY. SO THANK YOU, BRENDA.
WHO'S DOING THIS? >> IT'S ACTUALLY GOING TO BE ALFRED.
>> PELÁEZ: GREAT. >> GOOD AFTERNOON. I AM ALFRED BREWER, THE ECONOMIC DEVELOPMENT MANAGER AND I AM PLEASED TO BE HERE TO DISCUSS AND BRIEF YOU ON LATIN AMERICAN TAKE A LOOK AT OUR FOREIGN DIRECT INVESTMENT STRATEGY AND OUR LATIN AMERICAN STRATEGY. SO WORKING IN INTERNATIONAL RELATIONS AND OUTREACH IN SAN ANTONIO HAS BEEN LONG ONGOING FOR DECADES, BUT WE HAVE IN 2019 WORKED TO FOCUS OUR INTERNATIONAL STRATEGY. THAT WAS THE RESULT OF WORK WITH THE BROOKINGS INSTITUTION AND WHAT CAME OUT OF THAT WAS OUR METRO PRIORITY PLAN.
THAT WAS ADOPTED IN 2019 AND THAT WAS A FOCUS ON ELEVATING SAN ANTONIO'S REPUTATION ON THE GLOBAL STAGE AND IDENTIFYING KEY METROS WHERE WE COULD FOCUS OUR RESOURCES TO DRAW FDI FROM CERTAIN METROS AND WITH CERTAIN COUNTRIES.
THOSE WERE MEXICO, CANADA, JAPAN, GERMANY AND KOREA. AND IN 2022 COUNCIL ACCEPTED THE ECONOMIC DEVELOPMENT STRATEGIC FRAMEWORK THAT LEVERAGED THE METRO PRIORITY PLAN AND ADDED EMPHASIS ON EXPANDING FDI EFFORTS. THEN MOVING FORWARD INTO 2023 WE BEGAN TO ALIGN OUR PROGRAM AND BUDGET WITH AN EYE ON FOCUSING ON FDI ATTRACTION, SO THAT WAS -- SAW IN DEVELOPMENT WITH THE CASA SAN ANTONIO EVOLUTION THAT WAS A LONG-STANDING PROGRAM. AND THEN WORK WITH GREATER SATX AND EXPANDING OUR PARTNERSHIP IN THAT AREA. THEN MOVING FORWARD WE CONTINUED TO LOOK AT THAT EFFORT AND THROUGH ADDITIONAL WORK PLANS WITH GREATER TSSATX WE ROLLED IN ADDITIONAL INVESTMENT THROUGH FDI AND THAT'S WHAT WE'RE LOOKING TO DO MOVING FORWARD TO 2025. ADDITIONALLY IN 2025 WE'RE TAKING UP THE UPDATE OF METRO PRIORITY PLAN. WE'RE IN THE PROCESS OF ADDITIONAL -- FOCUSED ON THE KEY MARKETS THAT MAY HAVE CHANGED SINCE 2019.
NOW, TAKING A LOOK AT THE LATIN AMERICAN STRATEGY, SAN ANTONIO HAS LONG BEEN INVOLVED IN LATIN AMERICAN AND OUR OUTREACH, BUT IN 2021 WE TOOK -- WE BEGAN TO EXPAND OUR FOCUS TO OTHER LATIN AMERICAN MARKETS. AS YOU SAW IN THE PREVIOUS ONE, METRO PRIORITY PLAN DID NOT HAVE ANY LATIN AMERICAN COUNTRIES OUTSIDE OF MEXICO AND SO WITH THE CCR THAT WAS PRESENTED IN 2021, THAT PROVIDED DIRECTION TO EDD TO EXPLORE SISTER CITY'S RELATIONSHIPS WITH CENTRAL AMERICA AND SOUTH AMERICA.
DURING THAT TIME EDD TOOK THE METRO PRIORITY PLAN AND USED THAT TO INFORM HOW WE WOULD DO RESEARCH AND IDENTIFY THOSE CITIES TO BEGIN WORKING TOWARDS SISTER CITY RELATIONSHIPS. WITH THAT WE IDENTIFIED CITIES IN BRA LANDFILL, COLOMBIA AND PANAMA TO BEGIN TARGETING. ADDITIONALLY EDD LOOKED TO, I GUESS, HOW THEY WOULD FOCUS ON BUILDING THOSE RELATIONSHIPS AND DECIDED THAT CULTURAL AND TRADE MISSIONS TO THESE MARKETS WOULD BE IMPORTANT, AND THE DEVELOPMENT OF A LATIN AMERICAN TASK FORCE. GIVEN THE IMPORTANCE OF SISTER CITY RELATIONSHIPS AND THE COMMUNITY INVOLVEMENT, THE LATIN AMERICAN TASK FORCE WAS CREATED BASED OFF OF -- WITH COMMUNITY AND BUSINESS
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LEADERS WITH TIES TO LATIN AMERICA. SO WE BUILT OFF THE EXISTING RELATIONSHIPS THAT WERE HERE. THEN MOVING TO 2022 WE ACTED ON SOME OF THOSE RECOMMENDATIONS AND TOOK A TRAILED MISSION AND PARTNERSHIP WITH THE SAN ANTONIO HISPANIC CHAMBER TO COLOMBIA AND PANAMA WHERE WE BUILT GOVERNMENT-TO-GOVERNMENT RELATIONSHIPS AND B TO B RELATIONSHIPS. DURING THAT TIME WE LOOKED AT DEVELOPING AN RFP TO CONTRACT A LATIN AMERICAN CONSULTANT SO WE COULD FORMALIZE AND BE MORE ENGAGED IN-COUNTRY. WE LOOKED AT THAT RFP AND BUILT OUT A BROAD SCOPE THAT WOULD HELP BUILD THOSE SISTER CITY RELATIONSHIPS AND BEYOND, AND WITH THE FOCUS ON FDI. MOVING TOWARDS-- MOVING INTO 2023, WE SAW THE COMPLETION OF THE EVOLUTION OF CASA SAN ANTONIO THAT BROADENED THAT SCOPE TO -- NARROWED THAT SCOPE TO FDI, BUT BROADENED THE MARKET REACH BEYOND MEXICO.IN 2023 WE ISSUED THAT SOLICITATION FOR AN RFP FOR A LATIN AMERICAN CONSULTANT.
THAT WAS UNSUCCESSFUL. AND SO AS A DEPARTMENT WE STEPPED BACK AND LOOKED AT WHAT WE SHOULD DEVELOP AS A SCOPE OF WORK FOR THAT NEW RFP MOVING FORWARD, AND NARROWED THAT SCOPE TO FDI TO BE IN ALIGNMENT WITH THE GOAL OF -- GOAL NUMBER ONE OF THE STRATEGIC FRAMEWORK AND THE NEW CASA SAN ANTONIO.
IN AN EFFORT TO MAINTAIN ENGAGEMENT IN THE REGION AND NOT TO LOSE TIME AND ALSO TO TEST THE MARKET BEFORE WE ISSUED A LONG-TERM RFP, WE ESTABLISHED A ONE-YEAR PILOT PROGRAM WITH A NEWLY ESTABLISHED FIRM IN GROWING TA COLOMBIA -- BOGATA COLOMBIA AND WE HAD A NUMBER OF INCOMING AND OUTGOING DELEGATIONS AND IN 2024 WE CONTINUED THE EFFORTS AND ISSUED THE REVISED RFP. MEANWHILE THE PILOT PROGRAM WAS IN FORCE AND WORKING TO GENERATE FDI LEADS FOR SAN ANTONIO.
THEN MOVING ON TO 2025 IN THE FUTURE WE'RE LOOKING TO FINALIZE THE CONTRACT WITH THE RECOMMENDED PROPOSAL, AND THEN WE ARE ALSO IN THE BEGINNING STAGES OF AN ADDITIONAL TRADE MISSION TO COLOMBIA THAT IS BEING LED BY THE SAN ANTONIO HISPANIC CHAMBER, AND THAT WAS TAKE PLACE IN JANUARY OF 2025. THE RFP WAS ISSUED EARLIER THIS YEAR AND WE HAVE THE -- I GUESS THE -- -- THE EVALUATION COMMITTEE WAS MADE UP OF ECONOMIC DEVELOPMENT DEPARTMENT STAFF, GREATER SATX AND THE SAN ANTONIO AIRPORT SYSTEM. WE RECEIVED FOUR PROPOSALS AND THE TOP RANKING PROPOSAL WAS X STRATEGY U.S. WE RECOMMENDED X STRATEGY U.S. BECAUSE IT'S A LEADING -- INDUSTRY-LEADING FDI LEAD GENERATION FIRM THAT'S FOCUSED IN LATIN AMERICA. IT HAS OFFICES IN LATIN AMERICA, WASHINGTON, D.C., PANAMA AND ADDITIONAL NETWORK THROUGHOUT LATIN AMERIC. THIS IS -- THEY ARE KEY CONTACT COUNTRIES FOR OUR LATIN AMERICAN COUNTRIES. IT IS LED BY PILLAR [INDISCERNIBLE], SHE WAS A TRADE NEGOTIATOR FOR THE GOVERNMENT OF COLUMBIA AND IN ADDITION SHE WAS IN PANAMA WHERE SHE WAS THE FDI DIRECTOR.
ADDITIONALLY SHE'LL BE SUPPORTED BY MARKET INTELLIGENCE LATIN AMERICA WHOSE LEAD PRINCIPAL IS A VERY, VERY EXPERIENCED TRADE AND FDI PROFESSIONAL WHO HAS MANY YEARS WORKING AND REPRESENTING STATES THROUGHOUT THE UNITED STATES. SO WE HAVE OKLAHOMA, HE'S REPRESENTED MARYLAND, COLORADO AND MASSACHUSETTS. AND SO WITH THIS GROUP THEY HAVE STRONG PUBLIC AND PRIVATE NETWORKS, WHICH IS VERY KEY IN DEVELOPING THIS LEAD GENERATION.
WE'VE IDENTIFIED THAT NETWORKS ARE KEY AND CONTACTS WITH THOSE NETWORKS AND MAKING CONTACTS WITH THOSE DECISION MAKERS IS VERY IMPORTANT WHEN DECIDING WHICH FIRM TO CHOOSE. THIS FIRM XTRATEGY WILL FOLLOW THE METRICS.
WE WILL WORK WITH THEM THE FIRST FEW MONTHS TO DEVELOP AN KEY INVESTMENT PROMOTION
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STRATEGY THAT WILL INCLUDE A MARKETING PLAN, THAT WILL INCLUDE A LIST OF KEY COMPANIES THAT THEY'VE IDENTIFIED IN THE MARKETS, AND NOW WHILE WE'VE RECOMMENDED THAT PANAMA AND COLOMBIA BE THE FIRST COUNTRIES WE TARGET, WE ARE LEAVING IT OPEN AND TO THE EXPERTS TO SEE IF THERE ARE OTHER COUNTRIES THAT HAVE BETTER OPPORTUNITIES OR DIFFERENT OPPORTUNITIES THAT ALSO ALIGN WITH OUR KEY INDUSTRIES THAT ARE OUTLINED IN THE STRATEGIC FRAMEWORK. THE METRICS THAT THEY WILL NEED TO MEET ARE MINIMUM OF 30 MEETINGS FROM THAT TARGET LIST.WITH THOSE MEETINGS THEY'LL BE PITCHING COMPANIES ON SAN ANTONIO, AND WE HAVE -- WE WILL BE PARTNERING WITH THEM ON THOSE MEETINGS. SO THEY MAY NOT JUST BE ON THEIR OWN. WE WILL BE PROVIDING THEM INFORMATION AND ALSO COORDINATING WITH GREATER SATX DEPENDING ON THE SIZE AND THE TIMELINE OF THOSE COMPANIES. FINALLY, THEY'LL BE ASKED TO GENERATE THREE LEADS WITH LARGE COMPANIES OF $20 MILLION IN REVENUE, ANNUAL REVENUE.
THIS IS SOMETHING THAT WE LEARNED DURING THE PILOT PROGRAM.
WE HAD ORIGINALLY TARGETED COMPANIES WITH REVENUE OF 50 MILLION, BUT AFTER LOOKING AT THE MARKETS, $20 MILLION IN ANNUAL REVENUE BETTER FIT WHAT WAS AVAILABLE IN THAT REGION. THEN WITH AN ADDITION OF HAVING THAT NEAR-TERM INVESTMENT PLAN. THE CONTRACT WE ARE PROPOSING IS A ONE-YEAR TERM CONTRACT WITH TWO ADDITIONAL ONE-YEAR RENEWALS. ANNUAL PAYMENT OF $50,000 FOR A TOTAL OF $150,000. JUST A SLIGHT CORRECTION, THERE IS -- THERE ARE FUNDS AVAILABLE IN THE GENERAL FUND FOR FISCAL YEAR 2025 AND ANY FUTURE CONTRACTS OR RENEWALS WILL BE DEPENDENT CONTINGENT ON CITY COUNCIL APPROVAL IN THE FOLLOWING YEARS. SO WITH THAT STAFF RECOMMENDS CONTINUING THE LATIN AMERICAN FDI STRATEGY THAT HAS BEEN BEING BUILT OUT SINCE 2021 AND STAFF RECOMMENDS APPROVING THIS CONTRACT FOR FULL COUNCIL CONSIDERATION.
>> PELÁEZ: QUESTIONS? COUNCILWOMAN VIA GRAN, ECONOMIES OR COMMENTS?
>> NO, I HAVEN'T HAVE ANY QUESTIONS. I THINK WHAT YOU'RE DOING IN TERMS OF HOW WE MOVE TO LATIN AMERICA IS IMPORTANT. I THINK WE JUST NEED TO KIND OF SET OUR GOALS AND EXPECTATIONS IN TERMS OF MEETINGS AND THEN REALLY WORK ON THAT RELATIONSHIP BETWEEN THE ELECTIVES. BUT IN TERMS OF -- IS SOMEONE FROM GREATER SATX IS HERE? SO I THINK WITH GREATER SATX WE'RE JUST LOOKING FOR YOU ALL FOR WHEN WE NEED THAT INPUT FROM ELECTED OFFICIALS AND THIN THEN IF WE SEE ANY ISSUES IT LOOKS LIKE THE TERMS AREN'T AS LONG AS WE CAN PIVOT FROM THERE. THANK YOU FOR YOUR WORK, THANK YOU.
>> PELÁEZ: THANK YOU. COUNCILWOMAN ROCHA GARCIA. >> ROCHA GARCIA: THANK YOU, CHAIR, AND THANK YOU FOR THE PRESENTATION. CAN YOU REMIND ME OR MAYBE THIS IS A QUESTION FOR THE CHAIR. CAN YOU REMIND ME WHY WE
SENT THIS BACK? >> I ASKED FOR IT BACK SO WE COULD HAVE A DISCUSSION.
SO THE -- THIS IS THE FIRST SORT OF FORMAL ENTREE INTO A DIFFERENT CONTENT ALTOGETHER. WE'RE SEEING INTERESTING ACTIVITY COMING OUT OF LATIN AMERICAN FURTHER THAN JUST MEXICO. I'M NOT JUST SAYING MEXICO DISMISSIVELY, I'M SAYING THAT THERE ARE COUNTRIES SOUTH OF THERE THAT ARE PRODUCING RESULTS FOR DIFFERENT CITIES AND I WANTED TO GIVE Y'ALL THE OPPORTUNITY TO ASK QUESTIONS. SO EVEN THOUGH THIS WAS A 50,000-DOLLAR SPEND ONLY AND IT COULD HAVE STAYED ON CONSENT, I PULLED IT SO WE COULD HAVE AN OPPORTUNITY TO EXPLORE SOMETHING THAT IS THE BEGINNING OF WHAT I HOPE
IS A BIG DEAL. >> ROCHA GARCIA: BUT SOMETHING CHANGED FROM THE
STAFF RECOMMENDATION? >> PELÁEZ: NO. >> ROCHA GARCIA: OKAY.
I'LL CONTINUE WITH MY QUESTIONS. THANK YOU.
AND I APPRECIATE IT. AND LIKE THE CHAIR SAID, I KNOW THAT IT'S BEYOND MEXICO EVEN THOUGH MEXICO IS OUR TOP TRADE PARTNER. IN 2023 WE HAD A BRIEFING ON INTERNATIONAL AND GLOBAL ACTIVITIES AND SO WHEN I MENTIONED AT THE TIME THAT SHERRI ANN AND EVERYBODY DOES A GREAT JOB AND I LOOK FORWARD TO THE IMPACT THAT THIS WILL HELP WITH AS CONSULTANTS TOO TO EXTEND THAT WORK.
HOW ARE WE GOING TO MEASURE THE EFFECTIVENESS OF THE CONTRACT, AND JUST EXPANDING
INTO OTHER LATIN AMERICAN -- COUNTRIES IN LATIN AMERICA? >> YES.
WE'VE ALREADY STARTED MEASURING IT AND WHAT WE NEED TO ADJUST WITH THIS PILOT PROGRAM. WE HAVE NOT SEEN FULLY A COMPANY -- WE'VE HAD SEVERAL SMALLER COMPANIES LAND HERE THROUGH THE PILOT PROGRAM. SO THAT'S GOOD IN A SENSE
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THAT IT'S BUILDING THE ECOSYSTEM OF LATIN AMERICAN COUNTRIES HERE SO ONCE THAT'S BUILT AND STRENGTHENS IT HELPS TO DRAW AND ATTRACT LARGER COMPANIES.SO MOVING FORWARD WE WILL KEEP TRACK BY MONITORING FOLLOW-UP BECAUSE FOLLOW-UP IS GOING TO BE KEY HERE. THIS IS A LONG-TERM ENGAGEMENT.
IT CAN'T HAPPEN OVERNIGHT SO WITH THAT FOLLOW-UP AND CONTINUED FOLLOW-UP MAKING SURE THAT WE'RE SEEING PROGRESS IN THE COMPANIES WE'RE MEETING AND IF WE'RE NOT SEEING PROGRESS, MAYBE WE GO BACK AND LOOK AND SAY MAYBE WE NEED TO LOOK AT A DIFFERENT MARKET, DIFFERENT INDUSTRY OR HOW THE CONSULTANT IS EVALUATING A
COMPANY'S INVESTMENT TIMELINE. >> ROCHA GARCIA: OKAY.
AND THEN I KNOW THAT IF WE HAVE A LIST OF TRADE MISSIONS, I COUNT ABOUT SIX FROM OCTOBER 2022 UNTIL JANUARY. SO PANAMA AND COLOMBIA, INDIA, PHILIPPINES AND TAIWAN, PANAMA, CITY OF KNOWLEDGE, AND I AM JUST WONDERING HOW DO WE MEASURE WHETHER TRADE MISSIONS ARE SUCCESSFUL?
>> GOOD QUESTION. YES, I THINK IT'S AGAIN BACK TO FOLLOW-UP.
AND WE CAN GO BACK AND LOOK AT THE MEETINGS THAT WE'VE HAD.
AND MAYBE DRAW A LINE FROM THOSE TRADE MISSIONS TO WHAT HAS COME OUT OF THEM.
MAYBE THEY'RE NOT FULLY A COMPLETE INVESTMENT, BUT IT MAY BE SOME CERTAIN MILESTONES OF DEVELOPING RELATIONSHIPS AND SEEING THAT SIGNIFICANT CONTACT, PUTTING US IN CONTACT WITH ANOTHER DECISION MAKER AND SORT OF SERVING AS MULTIPLIERS BECAUSE A LOT OF THIS WORK RIGHT NOW, AND WE JUST SAW THIS IN KOREA, THERE'S A LOT OF WORK OF GETTING OUR NAME OUT THERE AND ELEVATING SAN ANTONIO.
SO I WOULDN'T SAY WE'RE BEHIND, BUT WE STILL HAVE WORK COMPARED TO OUR PEER
CITIES. >> ROCHA GARCIA: HOW DO WE GIVE UP ON SOMETHING? HOW DO WE SAY THIS IS NEVER GOING TO WORK? HOW DO YOU MAKE THAT
DECISION? E. >> I THINK I WOULD HAVE TO
CONSULT THE REST OF YOUR TEAM. >> ROCHA GARCIA: AND THAT COULD BE KIND OF LATER. I'M JUST DEPENDS ON THE POLITICS OF IT, RIGHT, AND SO IN THAT PARTICULAR COUNTRY, ET CETERA. BUT I'M JUST WONDERING LIKE WHEN DO WE THINK THAT
SOMETHING'S NOT GOING TO WORK? >> GOOD AFTERNOON.
MY NAME IS SHERRI AND I WANTED TO REFER BACK TO YOUR EARLIER QUESTION BECAUSE ALL THOSE TRADE AND CULTURAL MISSIONS THAT YOU REFERENCED INCLUDE VISITS TO OUR SISTER CITIES. WE HAVE A VERY STRONG SISTER CITIES PROGRAM AND THE WAY WE HAVE DESIGNED A LOT OF THESE TRADE AND CULTURAL MISSIONS IS TO NOT JUST GO TO OUR SISTER CITY, WHERE WE HAVE THESE CONTINUED RELATIONSHIPS AND PARTNERSHIPS, AND IT'S IMPORTANT TO MAINTAIN BUT IT'S TO LEVERAGE THOSE VISITS TO ALSO CREATE VISIBILITY ABOUT SAN ANTONIO IN, SAY, THE CAPITOL CITY.
SO TYPICALLY LIKE IN THE PHILIPPINES, YES, WE WENT TO [INDISCERNIBLE] BUT WE ALSO HAD SOME ACTIVATIONS IN MA LANDFILL IN A, JUST TO GIVE YOU AN EXAMPLE.
SO WE GAVE THOSE TRADE MISSIONS TO FOSTER OUR SISTER CITY PROGRAM, BUT TO ALSO PROMOTE VISIBILITY OF SAN ANTONIO. BECAUSE ALFRED HAS RIGHTLY POINTED OUT THAT OUR NAME BRAND IS STILL NOT KIND OF WILDLY KNOWN.
SO MARKETING MISSIONS -- AND I KNOW THE GREATER SATX REFERS TO MARKETING MISSIONS WITH A LOT OF THEIR MISSIONS IS REALLY A GREAT NAME BECAUSE IT'S ABOUT, NUMBER ONE, TAKING SAN ANTONIO OUT INTO THE WORLD, TALKING ABOUT WHO WE ARE, WHAT OUR ASSETS ARE, WHAT OUR RESOURCES ARE. AND WE PLAN CAREFULLY SO THAT WE ARE ENGAGING AND EQUITABLY MAKING SURE THAT WE NEVER LEAVE ANYONE OUT.
WE HAVEN'T BEEN IN A SITUATION WHERE WE'VE HAD TO SAY WE CAN NO LONGER DEAL IN THIS PARTICULAR MARKET. I THINK THAT THAT COMES WITH CAREFUL PLANNING AND MAKING SURE THAT EVERY TIME WE DO UNDERTAKE SOME OF THESE TRADE AND CULTURAL MISSIONS THAT THEY ARE GOING TO BE BENEFICIAL. AND SOME OF THE OUTCOMES OF THESE TRADE AND CULTURAL MISSIONS WE FEEL THEM IMMEDIATELY, BUT MOST OF THEM IT'S ACTUALLY MEDIUM TERM, LONG-TERM OUTCOMES AND YOU START TO HEAR ABOUT FRUITS OF SOME OF THOSE MISSIONS A YEAR LATER. AND SOMETIMES WE TALK TO PARTNERS WHO ARE ON THE TRIP AND THEY TALK ABOUT SOME OF THE ACTIVATIONS THEY'VE HAD SINCE THEY'VE COME BACK. SO WHEN WE TALK ABOUT THE INTERNATIONAL REALM, IT IS
MORE OF A LONG-TERM PLAY. >> ROCHA GARCIA: THANK YOU, SHERRI.
AND IN PARTICULAR THIS ONE ARE YOU MORE FOCUSED ON THE ECONOMIC IMPACT OR THE
CULTURAL IMPACT WITH THIS CONTRACT? >> THIS IS ECONOMIC, BUT I'D LIKE TO JUST REMIND ALL OF US THAT WHEN THE CCR CAME OUT THE CCR DID NOT FOCUS ENTIRELY ON ECONOMIC. IT WAS A CCR THAT FOCUSED ON COLLABORATION, LEVERAGING
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THE CULTURAL AND OTHER TIES IN LATIN AMERICA. SO WE TRIED TO REALLY AMPLIFY THAT MISSION AND THE TRADE AND CULTURAL MISSIONS WE'VE UNDERTAKEN TO COLOMBIA AND PANAMA HAVE REALLY UNDERSCORED A LOT OF THOSE OPPORTUNITIES FOR COLLABORATION. THIS PARTICULAR ACTIVITY IS VERY FOCUSED ON THE FDI ECONOMIC DEVELOPMENT PIECE, VERY MUCH IN ALIGNMENT WITH THE STRATEGIC FRAMEWORK.SO WE ARE HOPING THAT IN ADDITION TO ALL OF THE COLLABORATION THAT WE'RE GOING TO SEE FROM LATIN AMERICA AND HOPEFULLY MORE COUNTRIES IN THE FUTURE, WE ARE ALSO ACTUALLY GOING TO GET SOME POSITIVE ECONOMIC IMPACT AS WELL.
SO WE'D LIKE TO BE ABLE TO HAVE BOTH. >> ROCHA GARCIA: OKAY.
THANK YOU SO MUCH, SHERRI. WERE YOU GOING TO ADD SOMETHING?
>> I WAS GOING TO ADD THAT THERE ARE TIMES -- TO YOUR QUESTION OF AT WHAT POINT DO WE DECIDE WE'RE NOT GOING TO WORK THAT MUCH WITH A PARTICULAR REGION OR COUNTRY. I WOULD SAY WE HAVE ESTABLISHED RELATIONSHIP AND SHERRI AND HER TEAM DO AN EXCELLENT JOB OF MAINTAINING THOSE WITH DIFFERENT LEVELS OF INTENSITY BASED ON RESOURCES AVAILABLE. I THINK THERE'S ALSO A LOT OF DATA THAT GOES INTO THIS AND I THINK THAT'S WHAT WE LEARNED.
ALFRED MENTIONED THE BROOKINGS PROCESS THAT WE WENT THROUGH.
THERE'S A LOT OF DATA THAT CAN TELL US INDUSTRY CONNECTIONS THAT WE HAVE WITH CERTAIN COMMUNITIES. MACRO ECONOMIC FACTORS THAT CAN MAKE THINGS EASIER OR MORE CHALLENGING FOR US TO WORK TOGETHER. POLICIES WITHIN THOSE COUNTRIES AS ELECTED OFFICIALS CHANGE. WE HAVE TO CONSIDER ALL OF THOSE THINGS TO SEE IF MAYBE THIS IS A TIME WHERE WE EASE UP A LITTLE BIT WITH ONE COUNTRY, BUT WE CAN DOUBLE DOWN WITH ANOTHER ONE. SO WE WERE CONSTANTLY EVALUATING THOSE THINGS AND SHERRI AND HER TEAM CAN MANEUVER THROUGH THOSE THAT
AS WELL. >> ROCHA GARCIA: THANK YOU, CHAIR.
>> PELÁEZ: THANK YOU. COUNCILMAN? >> WHYTE: SO OUR GREATER
STRATEGIC IN SATX IS TO CARD NATE THE EFFORTS? >> AT THIS TIME WE'RE GOING MANAGE THE XTRATEGY CONTRACT BUT WE ARE GOING TO BRING IN OUR PARTNERS WITH GREATER SATX AND OTHER LOCAL PARTNERS AS WELL. WE'VE DONE THAT WITH THE PILOT PROGRAM. WE'VE WORKED WITH TECH BLOCK AND GEEK DOM FOR SOME OF THE SMALLER COMPANIES THAT HAD AN INTEREST. SO WE ARE SORT OF A CONVENENER THAT SENSE, MANAGING THE CONTRACT, BUT MAKING SURE WE PUT THE RIGHT
PEOPLE IN THE RIGHT ROOM. >> WHYTE: SO WANT TO MAKE SURE WE'RE NOT DUPLICATING EFFORTS AND THE RIGHT HAND KNOWS WHAT THE LEFT HAND IS DOING.
PAST FDI PROJECTS, WOULD IT BE POSSIBLE FOR US TO MAYBE GET A MEETING OR A BRIEFING ON HOW THIS HAS WORKED IN THE PAST AND WHAT KIND OF SUCCESS WE'VE HAD ON SOME OF
THESE? >> SO I WANT TO MAKE SURE I'M UNDERSTANDING.
YOU WANT A BRIEFING ON OUR FDI EFFORTS AND WHAT'S WORKED AND WHAT HASN'T OVER
THE YEARS? >> WHYTE: YEAH. >> I THINK WE'VE DONE THAT -- WE'VE DONE THAT BEFORE AND IT MIGHT BE TIME FOR US TO DO THAT AGAIN.
>> YEAH. I THINK A PREVIOUS GLOBAL BRIEFING WAS ALSO MENTIONED EARLIER, BUT IF IT'S SOMETHING SPECIFICALLY FOCUSED ON FDI WE CAN DRILL DOWN ON THAT IF YOU'D LIKE AND THAT ACTUALLY MAY BE A BETTER COMBINATION ON ASTX.
WHILE IT IS THUS LATIN AMERICA AND SHERRI AND HER TEAM WILL BE TAKING THE LEAD ON THAT, THERE ARE A LOT OF OTHER AREAS THAT PROVIDE THE GREATER SUPPORTS.
>> WHYTE: AND IF YOU'VE ALREADY DONE IT IT CAN BE FOR MY OFFICE OR IF WE THINK --
>> PELÁEZ: IF YOU COULD DO IT FOR MY OFFICE, I THINK IT WOULD BE GOOD FOR US ANYWAYS TO LOOK AT WHAT'S WORKED AND WHAT HASN'T BEFORE WE DIVE INTO ANOTHER ONE, BUT I
WOULD LIKE TO KNOW. >> I WAS JUST GOING TO SAY I'M SEEING HER LANYARD, JCB IS A BRITISH COMPANY. SO IT'S CONSTANT, CONSTANT THAT WE'RE DOING THIS.
BUT WE CAN CERTAINLY GO BACK A FEW YEARS AND REFRESH EVERYBODY'S MEMORY ABOUT SOME OF THESE MAJOR PROJECTS AND SOME WE MAY NOT HAVE HEARD SO MUCH ABOUT THAT
WERE ALSO REALLY SIGNIFICANT. >> OF COURSE YOU REMEMBER THAT. [LAUGHTER]. WHEN IN DOUBT, ALWAYS ASK
ELENA. SHE REMEMBERS. >> WHYTE: THAT WOULD BE GREAT IF WE CAN DO THAT. ON SLIDE 5 IT TALKS ABOUT GENERATE THREE LEADS OF LARGE COMPANIES WITH IMMEDIATE OR NEAR TERM INVESTMENT PLANS ANNUALLY.
FOR SOMETHING LIKE THIS, IS THERE A REQUIREMENT THAT THESE COMPANIES ACTUALLY
MOVED TO SAN ANTONIO? >> AT THIS POINT NO. THAT'S THE ULTIMATE GOAL, BUT WE'RE USING THIS AS A GUIDE IS WHAT WE'VE USED FOR OTHER CONSULTING AGREEMENTS.
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AND SORT OF I GUESS THE AGREED UPON METRIC TO USE TO SEE THE ACTUAL INTEREST OF THAT'S A VERY NEAR TERM POINT TO ACTUALLY ESTABLISHING IN SAN ANTONIO.SO THERE IS NO METRIC TO HAVE THEM FIRMLY HERE IN SAN ANTONIO.
>> WHYTE: BUT THAT'S THE GOAL. >> THAT'S THE GOAL.
>> WHYTE: RIGHT. AND FOR COMPANIES IN PAST THAT WE'VE GOTTEN TO COME HERE, WHAT ABOUT RETENTION? ARE WE KEEPING THESE COMPANIES AROUND OR ARE THEY STAYING FOR A LITTLE BIT AND THEN GOING? AND IF SO, WHY?
>> I THINK WE CAN TAKE A NUMBER. WE'VE BEEN LOOKING AT THAT MORE IN-DEPTH WITH THE NEW BUSINESS RETENTION AND GROWTH PROGRAM. BUT YES, WE ARE WORKING ON RETAINING AS THESE COMPANIES, AS THEY LAND HERE.
AND I THINK THAT'S IN PARTNERSHIP WITH THE GLOBAL ENGAGEMENT TEAM AS WELL, MAKING SURE THAT IT'S A WELCOMING COMMUNITY THAT'S ACCEPTING AND SUPPORTIVE OF INTERNATIONAL COMPANIES BUT THEN ALSO THE WORK OF REST OF EDD AND GREATER SATX
REMAINING IN CONSTANT CONTACT CAN THESE COMPANIES. >> WHYTE: I'D LOVE TO SEE AN ANALYSIS OF, AGAIN, MAYBE FIVE, EIGHT YEARS BACK, THE EFFORTS THAT HAVE BEEN SUCCESSFUL TO BRING THESE COMPANIES HERE AND THEN IF THEY'RE STILL AROUND.
AND CHAIR, LISTEN, I APPRECIATE YOU LEADING THIS EFFORT.
IT'S SOMETHING THAT I THINK WE NEED TO DO MORE OF AS A CITY, AS WE JUST TALKED ABOUT THIS MORNING, GETTING COMPANIES TO SEE THE VALUE OF BEING IN SAN ANTONIO, WANTING TO BE HERE FOR THE LONG-TERM -- BLESS YOU. HIRING OUR CITIZENS, CREATING GOOD-PAYING JOBS FOR THEM SO THEY CAN SUPPORT THEIR FAMILIES, THERE'S NOT A LOT MORE IMPORTANT THAT WE SHOULD BE LOOKING AT. SO I'M HAPPY WE'RE DOING THIS. I WANT TO MAKE SURE THAT WE'RE DOING IT IN A -- AN EFFICIENT AND RESPONSIBLE MANNER AND AS LONG AS WE'RE DOING SO I'M ALWAYS GOING TO
SUPPORT STUFF LIKE THIS. THANKS. >> PELÁEZ: SURE.
COUNCILWOMAN ROCHA GARCIA, YOU HAD ANOTHER QUESTION. COUNCILWOMAN CASTILLO, DO
YOU HAVE ANY COMMENTS, QUESTIONS? >> CASTILLO: THANK YOU, CHAIRMAN. I HAVE NO COMMENTS OR QUESTIONS ON THIS ITEM.
THANK Y'ALL FOR THE PRESENTATION. >> PELÁEZ: THANKS.
AND AGAIN -- YES, MA'AM, GO AHEAD. >> BECAUSE OF BROOKS AND OTHER ENTITIES, JCB, THE MOST RECENT.
SO I THINK WE MAY NEED TO TAKE A LOOK AT WHY OUR OTHER COUNCIL MEMBERS AREN'T FULLY VETTED ON THIS. SO MAYBE WE HAVE GREATER SATX AND OUR CHAMBERS DO AN EVENT THAT SAYS GLOBALLY THIS IS WHAT WE'RE GOING AFTER.
I THINK THE CONTRACT IS AN AMOUNT THAT I CAN LIVE WITH TO MAKE SURE THAT WE GET THOSE THREE MEETINGS. I THINK THERE'S OPPORTUNITY IN THERE BUT I THINK IF THE MESSAGE ISN'T TO ALL OUR COUNCIL MEMBERS, THEN WE DO A BETTER JOB OF DOING THAT.
BECAUSE I AM FULLY AWARE OF WHAT THIS INVESTMENT CAN MEAN FOR THE SOUTHSIDE AND THE CITY OF SAN ANTONIO AS A WHOLE. SO AGAIN, I THINK POLITICIANS ARE GREAT BUT IT IS OUR PROCLAMATION TO BRING THIS IN AND SHERRI KNOWS THIS ALL TOO WELL WHEN WE'RE NEEDED AND WHEN WE'RE NOT. SO IF YOU COULD JUST KEEP US APPRISED OF THAT AGAIN. SO YEAH, I THINK WE NEED TO LOOK AT MAYBE DOING A YEARLY MEETING WHERE WE KIND OF EITHER PRESENT TO THE COUNCIL OR BRING THE WHOLE COMMUNITY TOGETHER WITH ALL OUR ELECTED OFFICIALS, INCLUDING THE COUNTY AND OUR STATE DELEGATION SO THEY KNOW THE GREAT WORKS AND EFFORTS THAT WE'RE TRYING TO DO AND THE RETENTION THAT WE'RE HAVING. WE JUST CELEBRATED I THINK 10 YEARS WITH OCI AND MISSION SOLAR. SO THE LONGEVITY IS HERE AND WE NEED TO GET THAT MESSAGE OUT AND MAKE SURE IT'S COMMUNICATED.
THANK YOU. >> THANKS. SO SARAH FROM GREAT SATX IS JOINING US AND YOU HEARD IT HERE ARTICULATED FROM MULTIPLE COUNCIL MEMBERS, SOUNDS LIKE IT'S TIME FOR US TO GET A DRILL-DOWN OPPORTUNITY TO REALLY DISCUSS FDI AND WHERE WE -- WHERE, WHERE WE'RE AND WHERE WE'RE GOING.
SO I THINK HAVING JUST SPENT THE LAST WEEK WITH YOU, SARAH, IN KOREA, I -- AND HAVING TALKED ABOUT THIS, THIS SEEMS LIKE AN OPPORTUNITY TO CREATE AN EVENT WHERE WE CAN ALL ASK QUESTIONS. IF THAT EVENT IS AT THIS COUNCIL MEETING OR AT SOMETHING ELSE THAT'S MORE CURATED OVER AT YOUR OFFICE, I'M OPEN TO ALL SORTS OF IDEAS. BUT THANK YOU FOR YOU ARE I
[00:30:01]
DON'T SUPPORT. DID YOU WANT TO ADD ANYTHING TO WHAT ALFRED SAID ABOUTRETENTION AND THE WORK THAT YOU GUYS DO? >> THANK YOU SO MUCH, COUNCILMAN, FOR THE OPPORTUNITY. AND GREAT TO BE WITH YOU ALL TODAY. FIRST OF ALL, I WOULD ABSOLUTELY LOVE THE OPPORTUNITY TO DRILL DOWN WITH EACH OF YOU ON OUR INTERNATIONAL STRATEGY.
I'VE BEEN WORKING IN INTERNATIONAL FOR 20 YEARS. IT'S MY PASSION AND I THINK WE HAVE TONS OF OPPORTUNITY HERE IN THE SAN ANTONIO REGION AND IT'S EXCITING THAT WE GET TO DIG IN IN THIS WAY. SO THE POINT ON RETENTION, I WANTED TO QUICKLY MENTION, I THINK WHEN YOU ATTRACT AN INTERNATIONAL COMPANY, WHETHER THERE'S A MANUFACTURING FACILITY OR SOME OTHER TYPE OF OPERATION IN OUR REGION, THEY'RE COMMITTED, THEY ARE STICKY. THESE INVESTMENTS ARE LARGE INVESTMENTS FOR COMPANIES AND SO THEY WANT AND NEED IT TO BE SUCCESSFUL.
AND IT'S OUR JOB TO MAKE SURE THAT THEY CAN BE SUCCESSFUL AND THAT RETENTION AND STICKINESS STAYS. SO WE DO VISIT VERY FREQUENTLY, INCLUDING WHEN WE'RE ON OUTBOUND MISSIONS LIKE IN KOREA, WITH COMPANIES THAT HAVE INVESTMENTS HERE TO MAKE SURE WE'RE HEARING FIRSTHAND WHAT ARE THEIR CHALLENGES AND AS A COMMUNITY WE COME TOGETHER AS ONE SAN ANTONIO TO MAKE SURE WE'RE ADDRESSING THOSE NEEDS AND MOVING THEIR BUSINESS FORWARD. THANK YOU. THANK YOU FOR THE
OPPORTUNITY. >> PELÁEZ: THIS IS AN ACTION ITEM.
LOOKING FOR A MOTION TO APPROVE IT. >> MAKE A MOTION TO APPROVE
AND SEND TO FULL COUNCIL. >> PELÁEZ: ALL THOSE IN FAVOR PLEASE SAY AYE? OPPOSITIONS. THANK YOU SO MUCH. THAT ITEM PASSES.
OUR NEXT ITEM IS A BRIEFING ON THE PROPOSED REVISIONS TO THE CITY OF SAN ANTONIO'S ECONOMIC DEVELOPMENT INCENTIVES POLICY GUIDELINES.
THANK YOU, ALFRED, SO MUCH FOR THE BRIEFING. >> GOOD AFTERNOON, I'M BRENDA HICKS-SORENSON, DIRECTOR OF ECONOMIC DEVELOPMENT.
THANK YOU FOR THE OPPORTUNITY TO BE HERE. SO IN -- SINCE FISCAL YEAR '23, SO BASICALLY THE LAST TWO YEARS, WE'VE HAD THE OPPORTUNITY TO WORK ON A NUMBER OF NEW PROGRAMS, REALLY REVIEW EXISTING PROGRAMS, AND TRIED TO ALIGN ALL OF THOSE RESOURCES TO THE ECONOMIC DEVELOPMENT STRATEGIC FRAMEWORK.
IF YOU MAY RECALL WHEN WE WERE LOOKING AT THE ECONOMIC DEVELOPMENT STRATEGIC FRAMEWORK WE TALKED A LOT ABOUT HAVING THE RIGHT TOOLS IN OUR TOOLBOX, AND ENSURING THAT WE HAD THOSE VARIOUS PROGRAMS AND RESOURCES. SO AGAIN, THAT'S REALLY WHAT THE FOCUS HAS BEEN THE LAST COUPLE OF YEARS. TODAY WHAT WE'RE FOCUSED ON IS REALLY THOSE -- WHAT WE LOOK AT AS A JOB CREATION, THOSE TAX ABATEMENTS, TAX REBATES, AND THE ECONOMIC DEVELOPMENT INCENTIVE FUND. SO WHEN WE LOOK AT THE INCENTIVE POLICY WE WANT TO MAKE SURE THAT WE'RE BALANCING THAT COMPETITIVENESS, THE RETENTION OF EXISTING COMPANIES, REINVESTMENT, MAKING SURE THAT WE'RE OBVIOUSLY HAVING A NET FISCAL IMPACT TO THE COMMUNITY, AND HOW DO WE SERVE THOSE BROADER COMMUNITY NEEDS.
AT THE SAME TIME WE WANT TO MAKE SURE THAT ANY CHANGES WE MAKE TO THE POLICY ARE PRIORITIZING THESE JOBS AND THE COMPETITIVENESS. AS YOU MAY RECALL TWO YEARS AGO WE WERE INFORMED BY SITE SELECTORS THAT WE WERE NOT EVEN HAVING A SEAT AT THE TABLE. AND I THINK SATX CAN ATEST TO THAT WITH THE PROJECTS IN THE PIPELINES AND SO OUR GOAL WITH THE REVISIONS TWO YEARS AGO WAS TO REALLY MAKE SURE THAT WE CONTINUE TO STAY IN THE GAME AND HAVE A SEAT AT THE TABLE.
WE WANT TO MAKE SURE THAT WHATEVER CHANGES WE MAKE WE CONTINUE TO DO THAT.
WE WANT TO MAKE SURE THAT OUR PROGRAMS ARE ACCESSIBLE AND THAT THE POLICY IS TIED TO THOSE KEY AREAS, AGAIN THAT STRATEGIC FRAMEWORK, HOW DO WE CONTINUE TO MOVE THE NEEDLE FORWARD AND THAT THEY'RE STREAMLINED AND AS EFFICIENT AS POSSIBLE.
GIVEN THAT WE MADE THOSE SIGNIFICANT CHANGES TWO YEARS AGO, WE ARE PROPOSING SOME MORE TWEAKS AS YOU MAY SAY FOR THIS CURRENT POLICY. WE REALLY WANT TO MAKE SURE THAT THOSE CHANGES THAT WERE APPROVED BY COUNCIL, THAT WE'RE MONITORING THOSE, WE'RE MAKING SURE THEY ARE ACTIVE. SO REALLY LOOKING MORE AT THOSE LESSONS LEARNED THE PAST TWO YEARS. I DO WANT TO HIGHLIGHT THAT WE ARE REQUIRED BY STATE LAW TO REVIEW AND TO ASSESS THE CHAPTER 312 TAX ABATEMENT GUIDELINES EVERY TWO YEARS AND HERE AT THE CITY WE TRY TO MIRROR THE CHAPTER 380 AS MUCH AS POSSIBLE. SO WHAT WE ARE PROPOSING AND WE'LL DISCUSS IN FURTHER DETAIL IS SOME ADMINISTRATIVE CHANGES, SO SO CHANGES WE MADE TWO YEARS AGO REALLY UPDATING WHAT THE CURRENT CENSUS INFORMATION IS AND SOME CLARIFICATION ON
[00:35:01]
A COUPLE OF ITEMS, SOME PROGRAMMATIC, HOUSE DO SUPPORT THE GOALS NOT ONLY BYE-BYE POLICY, BUT AS WELL AS TOUCH ON HIGH USERS AND SOME CLARIFICATIONS AS WE NEGOTIATED A COUPLE OF PROJECTS, SOME AGAIN KIND OF THINGS THAT CAME UP THAT WE WANT TO CLARIFY AND ARE WORKING WITH OUR CITY ATTORNEY'S OFFICE ON.SO OUR CURRENT POLICY REQUIRES THAT 100% OF THE JOBS BE PAID AT THE COSA MINIMUM WAGE, WHICH YOU MAY RECALL IS $18 AN HOUR, WHICH WAS APPROVED IN THE FISCAL YEAR BUDGET. AT THE TIME IT WAS 17.50, SO WE'RE RECOMMENDING THAT SHIFT FROM 17.50 TO 18 FOR THAT. AND 90% OF JOBS REQUIRED THAT THE WAGES ARE PAID SAME POLICY, THE NUMBERS ARE JUST SHIFTING. LIKE WAYS FOR THE STRATEGIC JOB GRANTS, THOSE ARE THE ECONOMIC DEVELOPMENT FUNDS, THESE ARE THE HIGHER PAYING, WHAT YOU'RE LOOKING AT AS OFFICE, CYBERSECURITY PER-JOB AMOUNT. WE CURRENTLY HAVE THAT 100% OF JOBS REQUIRE THE CITY MEDIAN INCOME AND 90% I HIGHER. WE'RE WE WANT THAT TO REFLECT CURRENT DATA. WHAT WE ARE SUGGESTING THAT WE CHANGE, THOUGH, IS THAT WE INDEX THIS ANNUALLY. SO FOR EXAMPLE,. THAT'S THE MINIMUM WAGE THAT THEY HAVE TO PAY THROUGHOUT THEIR ENTIRELY TERM OF THE CONTRACT.
THAT MIGHT BE A 10-YEAR CONTRACT, SO WHAT WE'RE PROPOSING IS THAT ON AN ANNUAL BASIS AS WE GET YOU UPDATED INFORMATION FROM THE CENSUS, THE AMERICAN SURVEY AND SO FORTH, THAT THE INFORMATION UPDATES AND THEN WE ALIGN THAT WITH THE COMPANIES. WE WOULD SHARE THAT. WE HAVE SOME OLDER INCENTIVES WHICH WE DID INDEX, AND SO THIS IS SOMETHING THAT WE'RE USED TO DOING. AND SO THAT WE WOULD JUST CONTINUE TO ALIGN IT TO THAT 80% OF MEDIAN WAGE OR WHATEVER IS HIGHER, FOR SOME REASON THAT WOULD CHANGE AND GO LOWER. SO THE OTHER THING THAT WE'RE RECOMMENDING IS THAT WE REQUIRE ALL EMPLOYEES, EXISTING AND NEW, TO BE PAID THAT MINIMUM WAGE LEVEL.
THIS IS LIKE -- THIS IS GOING TO IMPACT OUR EXISTING BUSINESSES, RIGHT? IF IT'S A COMPANY THAT'S LOCATING, ONE OF THOSE FOREIGN DIRECT INVESTMENTS THAT'S COMING TO TOWN, THEY HAVE ZERO OPERATIONS, ANY OF THSE JOBS AUTOMATICALLY FALL WITHIN THE NEW WAGE REQUIREMENTS IF WE WERE TO INCENTIVIZE THAT PROJECT.
SO THIS IS REALLY THOSE PROJECTS THAT ARE EXISTING OR LOOKING.
SO FOR A COMPANY HAS 400 JOBS AND THEY'RE NEEDING TO ADD AN ADDITIONAL 200 AND WE PARTNER WITH THEM ON INCENTIVES, ALL OF THOSE EXISTING 400 JOBS WOULD NEED TO BE AT THE WAGE LEVEL. SO THAT IS SOMETHING THAT'S NEW FOR THIS POLICY.
SO WE USE THIS TAX ABATEMENT REBATE MATRIX AND TO IDENTIFY HOW KIND OF WHERE COMPANIES ARE ELIGIBLE. SO YOU'LL SEE THAT RED BOX AROUND HOURLY WAGE, THAT IS THE ONLY COLUMN THAT WE ARE RECOMMENDING CHANGES TO. AGAIN, IT'S TIED TO THE PRIOR SLIDE OF UPDATING WHAT THE ACTUAL DATA IS RIGHT NOW SO THAT 22.92 IS ABOUT THREE DOLLARS MORE THAN WHERE WE ARE. SO WE'RE JUST UPPING EACH OF THOSE TIERS BUT KEEPING EVERYTHING ELSE THE SAME. SO A COMMITTEE WOULD NEED TO MEET THAT MINIMUM HOURLY WAGE RATE OF 22.92 AND THE MINIMUM CAPITAL INVESTMENT LEVEL OF 10 MILLION, AND THE NUMBER OF JOBS CREATED AT 50.
THAT WOULD ALLOW THEM TO BE ELIGIBLE FOR THAT BASE-TAX RATE OR ABATEMENT OR REBATE AMOUNT OF 20% AND THEN AGAIN WE'RE RECOMMENDING THE SAME EXCEPTIONAL ENHANCEMENTS THAT WE CURRENTLY HAVE OF 10 PEL CENTER, 10% IF IN A TARGETED INDUSTRY, AND/OR 10% IF LOCATING IN AN AREA WITH AN ECONOMY MATRIX SCORE OF SEVEN OR HIGHER, SEVEN OR HIGHER. SO HOW THIS WORKS IN REAL LIFE.
SO HERE'S A PROJECT XYZ WITH A BASE WAGE OF $30 AN HOUR. YOU'LL SEE THE CAPITAL INVESTMENT OF 110 MILLION AND THEN JOBS CREATED OF 100 AND A TARGET INDUSTRY OF I.T. CYBERSECURITY. SO IN THIS CASE THE WAGES ARE AT A TIER 2.
THE CAPITAL INVESTMENT FALL WITHIN THAT TIER 4 LINE. AND THEN THE NUMBER OF JOBS
[00:40:02]
FALL WITHIN THAT TIER 1. IN THIS CASE IT'S JUST ONE OF THOSE ITEMS THAT ARE IN THAT HIGHER TIER THAT ALLOW THE COMPANY TO POTENTIALLY EARN THAT AMOUNT, SO IN THIS CASE THE TIER 4 WOULD BE THE HIGHER AMOUNT FOR 50%. SO THAT'S THE BASE AMOUNT.AND THEN BECAUSE THEY'RE IN AN I.T. CYBERSECURITY, WHICH AGAIN IS IS THAT TARGET INDUSTRY, THERE'S AN ADDITIONAL 10%. SO THAT'S HOW WE GET TO THE 60%. AND THEN WE HAVE ANOTHER SIMILAR CHART THAT IDENTIFIES THE LENGTH OF THE TERM. SO IN THIS CASE IT WOULD BE BETWEEN SEVEN AND NINE YEARS. SO AS WE ALL CONTINUE TO READ IN THE ARTICLES AND WHATNOT, WE KNOW THAT REMOTE AND HYBRID EMPLOYEES CONTINUE TO BE A HOT TOPIC, AND THAT WAS NO DIFFERENT AS WE WERE WORKING WITH SOME OF THE COMPANIES THE PAST TWO YEARS. THIS IS A LITTLE BIT CHALLENGING BECAUSE THERE ARE VERY FEW COMMUNITIES THAT HAVE KIND OF REALLY FIGURED THIS OUT. WHEN WE GO THROUGH THIS PROCESS WE REVIEW ALL OF OUR COMPETITOR CITIES IN THE STATE OF TEXAS, LOOK AT THEIR POLICIES.
WE ALSO TAKE A LOOK AT BENCHMARK CITIES, AND MOST OF THE POLICIES HAVE BEEN SILENT ON REMOTE AND HYBRID EMPLOYEES. WHEN WE REACHED OUT TO SOME OF THOSE COLLEAGUES AND COHORT MEMBERS ACROSS THE STATE, PARTICULARLY, SEVERAL OF THEM ARE KIND OF ON THE SAME CYCLE. IT THEY'RE A COUPLE OF MONTHS BEHIND US. SO ONE OF OUR COLLEAGUES SAID WE'RE NOT GOING TO TELL YOU WHAT WE'RE DOING, WE'RE WATCHING WHAT YOU ALL DO TYPE THING.
SO A LITTLE BIT OF A HOT TOPIC AND SOMETHING WE'LL BE LOOKING AT ONE ANOTHER IN ANOTHER COUPLE OF MONTHS AFTER THEY GET ALL APPROVED. WHAT WE ARE RECOMMENDING IS THAT FOR CHAPTER 312 TAX ABATEMENTS, WE ALLOW FOR NO MORE THAN FIVE PERCENT OF THE FULL TIME JOBS TO BE HYBRID, BUT THEY STILL MUST BE PHYSICALLY PRESENT AT THE PROJECT SITE AT LEAST TWICE PER WEEK. SO WE HAVE CITY EMPLOYEES THAT ARE DOING THE SIMILAR TYPE OF WORK SCHEDULE. SO IT LIMITS IT.
ADMITTEDLY CHAPTER 312 IS MORE LIKELY GOING TO BE USED FOR A LOT OF THOSE MANUFACTURING, SO WE'RE TALKING ABOUT ALLOWING FOR SOME OTHER OFFICE CLERICAL TYPE WORK, ADMINISTRATIVE WORK. CHAPTER 380 TAX REBATES AND GRANTS GIVE US A LITTLE BIT MORE FLEXIBILITY UNDER STATE STATUTE SO THIS IS AN WE ARE WHERE POLICIES WOULD NOT NECESSARILY MIRROR EACH OTHER.
WHAT WE'RE RECOMMENDING IS THAT WE SPEND AT LEAST 60% OF THE ANNUAL HOURS AT A PROJECT SITE ENGAGED IN THE SERVICES. SO THIS MIGHT BE ON A PER WEEKLY BASIS, IT MIGHT BE ON A MONTHLY BASIS, GIVES A LITTLE BIT MORE FLEXIBILITY OR IF THEY ARE NOT GOING TO SPEND THIS 60% OF THEIR HOURS AT THE PROJECT SITE THEY RESIDE WITHIN THE CITY OF SAN ANTONIO, THE CITY OF SAN ANTONIO ETJ OR BEXAR COUNTY. WE DID REACH OUT TO A NUMBER OF STAKEHOLDERS AND I HAVE A SLIDE ON STAKEHOLDER ENGAGEMENT. THIS IS AN AREA THAT WE STARTED OUT WITH BUT OUR STAKEHOLDERS STRONGLY RECOMMENDED THAT THAT BE CHANGED TO AN "OR" FOR THE CHAPTER 380. OUR CURRENT POLICY PROTECTS THE EDWARD'S AQUIFER AND POWER IS KIND OF BECOMING THAT NEXT RESOURCE THAT WE NEED TO TAKE A LOOK AT. SO THERE IS SIGNIFICANT CONVERSATION TAKING PLACE NOT JUST HERE IN SAN ANTONIO, BUT ACROSS THE COUNTRY ABOUT WHAT TO DO WITH THOSE POWER INTENSIVE USERS. AND SO WHAT -- HERE'S JUST SOME EXAMPLES OF HEADLINES, AND YOU'VE SEEN THEM IN OUR OWN LOCAL NEWSPAPER.
CPS DEFINES POWER INTENSIVE USER AS A PROJECT THAT EITHER REQUIRES OR IS PROJECTED TO UTILIZE 40 MEGAWATTS OR MORE, AND IN PART THAT TYPICALLY REQUIRES& THE DEVELOPMENT OF A SUBSTATION. AND BECAUSE THEIR FOCUS HAS BEEN ON THOSE JOBS AND AGAIN GOOD-PAYING JOBS, WHAT WE'RE SUGGESTING IS THAT POWER INTENSIVE USERS MEET THE TIER 2 REQUIREMENT OF 200 JOBS.
SO A LITTLE BIT OF A SHIFT. SOME OF OUR COLLEAGUES, INCLUDING BEXAR COUNTY, FOR EXAMPLE, DOES -- HAS EXCLUSIONS TO THEIR POLICIES.
SO FOR EXAMPLE, DATA CENTERS ARE EXCLUDED. THE FEEDBACK WE RECEIVED IS LET'S NOT EXCLUDE ANYTHING, BUT IF WE'RE FOCUSED ON JOBS, LET'S JUST REQUIRE THAT THERE'S HIGHER JOBS THERE. SO THAT'S WHAT WE'RE RECOMMENDING FOR THAT. SO I MENTIONED STAKEHOLDERS A FEW TIMES.
HERE YOU'LL SEE ON THE LEFT OUR STAKEHOLDER ENGAGEMENT. I DO WANT TO JUST HIGHLIGHT THAT UNFORTUNATELY THE CAPS METRO MEETING HAS TO BE RESCHEDULED.
[00:45:01]
WE'RE NOW LOOKING AT EARLY NEXT WEEK. OTHERWISE WE HAVE MET WITH PARTNERS EITHER INDIVIDUALLY OR WE HOSTED ROUND TABLES, FOR EXAMPLE, OF LIKE BUSINESS AND COMMUNITY DEVELOPMENT ORGANIZATIONS, CHAMBERS, LABOR UNIONS AND SO FORTH. WE ALSO PRESENTED TO THE SMALL BUSINESS ADVISORY COMMISSION. UNFORTUNATELY WE LACKED A QUORUM SO THAT'S WHY IT'S HIGHLIGHTED AS MEMBERS. SO WE PRESENTED THIS TO THEM.WE GOT FEEDBACK. I ALREADY REFERENCED A COUPLE OF ITEMS THAT CHANGED AS A RESULT AS WE KIND OF WENT THROUGH THE PROCESS. TO THE RIGHT ARE THE KEY POLICY ITEMS. THE 80% MEDIAN INCOME IS SOMETHING THAT TWO YEARS AGO EVERYBODY LANDED ON, FELT COMFORTABLE WITH. THAT IS SOMETHING THAT WE RECEIVED STRONG SUPPORT FOR AS WE CONTINUE TO HAVE THOSE CONVERSATIONS.
THE BASE WAGES AND INDEXING, THERE IS A LITTLE BIT OF CONCERN AROUND AGAIN HOW THAT IMPACTS THE EXISTING COMPANIES. WE DO HAVE PARTNERS LIKE GREATER SATX AND BROOKS AND WE'RE GOING TO GO BACK AND LOOK AT HOW SOME OF THOSE THAT WENT BACK AND LOOKED AT THE IMPACT OF PAST PROJECTS AND HOW THAT MAY HAVE IMPACTED THOSE OPPORTUNITIES OPPORTUNITIES. SO THAT IS SOMETHING THAT HAD A LITTLE BIT OF A MIXED FEEDBACK. I THINK OVERALL THE CONSENSUS WAS TWO YEARS LET'S TAKE A LOOK AT IT, SEE WHAT KIND OF IMPACT IT HAS.
AND UNDERSTAND WHY WE WOULD WANT TO DO THAT. THE HYBRID WORKER I ALREADY MENTIONED THAT, CHANGE THE "AND" TO THE "OR," SO WE DID DO THAT.
THE OTHER COMMENTS WE HAD WAS MANGING SURE IT'S NOT BURDENSOME ON THE COMPANIES ON THE COMPLIANCE SIDE. THAT WAS SOMETHING THAT WE HEARD ON EVERY REQUIREMENT IS JUST WHAT IS THE BURDEN ON THE COMPANIES AS WE WENT THROUGH THAT AGAIN GOING BACK TO THE KIND OF DESIRE TO MAKE SURE WE'RE COMPETITIVE AND STREAMLINED.
AND THEN I DID NOT MENTION THIS, BUT WE CURRENTLY HAVE WITHIN OUR ABILITY TO CAP THE TAX ABATEMENT VALUE. SO FOR EXAMPLE, IF SOMEBODY EARNS 80%, WE DO THE CALCULATION AND THAT MIGHT JUST SAY FOR ROUND NUMBERS $10 MILLION.
WE DON'T NECESSARILY CAP IT WE DON'T NECESSARILY CAP IT AT THIS POINT IN TIME, SO IF THEY DOUBLE THEIR INVESTMENT THEY MAY BE ABLE TO EARN 20 MILLION.
WHAT WE'RE RECOMMENDING IS THAT WE'RE VERY EXPLICIT IN THE POLICY AND THAT WE'RE GOING TO CAP THAT TAX BAY BAITMENT. SO IF THEY SAY THEY'RE GOING TO SPEND X NUMBER OF DOLLARS, WE CALCULATE THAT THEIR ABATEMENT IS $10 MILLION, THEN WE'RE GOING TO CAP IT PER CONTRACT AT THAT $10 MILLION.
A LOT OF OTHER COMMUNITIES DO THIS. IT HAS NO IMPACT ON THE COMPETITIVENESS. WHAT IT DOES DO, THOUGH, IS OFTEN FORCES THE COMPANY TO BE A LITTLE BIT MORE FORTHCOMING IN THEIR APPLICATIONS.
SO THEY'RE GOING TO WANT TO TAKE MAX BENEFIT OF THE INCENTIVES.
SO HOPEFULLY RIGHT NOW WE DON'T HAVE ANYBODY KIND OF UNDERPROMISING AND OVERDELIVERING, BUT THIS HELPS WITH THAT. AND THEN POWER INTENSIVE USERS, THAT WAS THE AREA THAT WE HAD THE MOST KIND OF FEEDBACK ON PROBABLY THE DIFFERENCES. THE CHAMBERS, FOR EXAMPLE, WERE VERY ADAMANT THAT WE NOT EXCLUDE ANYONE. THEY WANTED TO MAKE SURE WE CONTINUED TO HAVE THAT OPEN FOR BUSINESS MESSAGING AND THEN, OF COURSE, YOU HAD OTHER PARTNERS WHO WANTED TO MAKE SURE THAT WE WERE ALIGNING WITH OUR SA CLIMATE READY PLAN AND SO FORTH.
SO WE THINK BASED ON ALL OF THE FEEDBACK THAT WE GOT, WE WERE ABLE TO GET TO A REALLY GOOD BALANCE OF, AGAIN, MAKING SURE WE'RE SUPPORTING AND PROTECTING KIND OF THAT RESOURCE WHILE AT THE SAME TIME FOCUSING ON THOSE JOBS. I DO WANT TO RECOGNIZE WE DID -- ARE AWARE OF OF A LETTER THAT WAS RECEIVED LAST NIGHT WITH SOME ADDITIONAL INPUT, AND WE ARE CURRENTLY LOOKING AT THAT FOR THE LEGALITIES OF WHAT'S RECOMMENDED, THE COMPLIANCE ASPECTS OF WHAT'S RECOMMENDED, AS WELL AS THE COMPETITIVENESS. SO LIKE ANY RECOMMENDATION OR SUGGESTION, THAT'S USUALLY WHAT WE RUN THROUGH IS MAKING SURE OBVIOUSLY IT'S LEGAL, AND THEN THE COMPLIANCE REQUIREMENTS. AND THEN ENSURING THAT WE'RE COMPETITIVE.
SO TODAY IS A BRIEFING FOR FEEDBACK AND THEN WHAT WE WOULD DO IS AGAIN WE'RE STILL GETTING SOME ADDITIONAL FEEDBACK AS WE RUN SOME OF THAT ADDITIONAL INFORMATION. LIKE I SAID, BROOKS IS DOING A SURVEY OF THEIR EMPLOYEES.
GREATER IS TAKING A LOOK AT SOME OF THE PROJECTS. SO THERE MIGHT BE A COUPLE OF THINGS AND THEN OBVIOUSLY WITH THE FEEDBACK THAT YOU'VE PROVIDED.
SO HERE'S JUST A SUMMARY OF WHAT THE GUIDELINES ARE CHANGING RIGHT NOW.
AGAIN, THOSE BASE WAGES AND THE INDEXING, THE QUALIFIED EMPLOYEE DEFINITION, WHICH
[00:50:02]
IS THE HYBRID AND REMOTE WORKERS. CAPPING TAX ABATEMENT AND THEN THE POWER INTENSIVE USERS REQUIRED FOR 200 JOBS OR MORE.AGAIN, WE ARE LOOKING FOR FEEDBACK TODAY. DEPENDING UPON THAT FEEDBACK WE WOULD LOOK AT A FULL COUNCIL B SESSION PRESENTATION ON NOVEMBER 6, AND THEN POTENTIAL COUNCIL CONSIDERATION NOVEMBER 21ST.
OUR CURRENT POLICIES DO EXPIRE 12-31-2024, SO WE WOULD BE LOOKING FOR THAT
IMPLEMENTATION ON JANUARY 1, 2025. >> PELÁEZ: THANKS.
SO THIS IS A STATUTORY REQUIREMENT FOR US TO -- WE HAVE TO APPROVE THESE EVERY
SO OFTEN? >> FOR CHAPTER 312 IT IS A TWO-YEAR REVIEW BY STATE
STATUTE, YES, SIR. >> PELÁEZ: OKAY. LET'S TAKE QUESTIONS AND
COMMENTS. VIAGRAN? >> I DID GET THE INFORMATION --E INFORMATION WE GOT LAST NIGHT? I WOULD LIKE TO HEAR THE RESULTS OF THAT IN TERMS OF WHAT WE CAN DO IN TERMS OF WORKER SAFETY, ESPECIALLY IN THE CHANGES WITH THE CLIMATE AND THE HEAT IN PARTICULAR. SO I DON'T KNOW IF YOU WANT TO DO A BRIEFING HERE OR WE DO A BRIEFING IN BIGGER B SESSION OR ONE OF THE OTHER COMMITTEES, BUT AS SOON AS YOU FIND OUT IF YOU COULD LET US KNOW.
I'D LIKE TO GO BACK TO THE SLIDE THAT TALKED ABOUT THE POWER USERS, THE HIGH INCIDENT POWER USERS. SO THIS IS FOR BUSINESSES THAT COME IN AND NEW BUILD? OR ARE WE TALKING ABOUT BUSINESSES THAT POSSIBLY COME IN, AND THINK IT'S A REALLY GOOD IDEA TO BE IN AN OLD BUILDING AND THEN FIND OUT IT'S GOING TO TAKE A LOT TO POWER THAT OLD BUILDING? ARE WE TALKING ABOUT BOTH OR JUST NEW BUILDS?
>> SO IT WOULD BE EITHER. I MEAN, IN REALITY WITH THIS KIND OF USE YOU'RE LIKELY
LOOKING AT A NEW BUILD. >> VIAGRAN: BECAUSE I'M VERY PROUD OF OUR CONSERVATION EFFORTS HERE IN SAN ANTONIO AND WHAT WE HAVE DONE.
HOWEVER, MY CLIMATE SUSTAINABILITY SIDE IS ALWAYS LOOKING AT IF WE ASK SOMEONE TO COME IN AND THEY COME IN TO AN OLDER BUILDING DOWNTOWN AND THEN THEY FIND OUT IT REALLY WASN'T WORTH IT BECAUSE TO POWER THAT BUILDING OR GET IT UPGRADED, IT'S JUST GOING TO BECOME TOO MUCH AND MAYBE TOO MUCH OF A POWER INTENSIVE USERS.
WHAT DO WE DO THEN? DO WE GIVE THEM BREAKS FOR SAVING ONE OF THE EXAMS WE SAID THAT WERE OLD OR DO WE TELL THEM, NO, THIS IS TOO MUCH POWER FOR WHAT YOU'RE OFFERING US? SO I THINK THAT'S ONE THING THAT WE'RE GOING TO NEED TO LOOK AT AS WE MOVE FORWARD, ESPECIALLY AS WE DECIDE WHAT'S -- THERE'S SOME SPECIFIC BUILDINGS, WHICH I WILL NOT MENTION THAT I'M THINKING DOWNTOWN CURRENTLY THAT I'M LIKE, IF WE HAD -- EVEN IF THEY WEREN'T POWER INTENSIVE USERS, JUST TO GET THAT BUILDING UP AND RUNNING MIGHT BECOME SOMETHING WHERE THEY REQUIRE MORE POWER.
AND THAT'S THE OTHER THING IS I DON'T KNOW MOVING FORWARD IF WE COULD SAY IF YOU'RE BRINGING IN THIS BUILDING AND YOU'RE DOING THESE KIND OF WORK AND EFFORTS, THIS IS ON AVERAGE WHAT SORT OF POWER USAGE YOU SHOULD HAVE.
IF YOU'RE GOING ABOVE THAT WE NEED TO UNDERSTAND WHY. SO I DO LIKE WHAT WE'RE DOING WITH POWER INTENSIVE USERS, BUT I THINK WE NEED TO DO THAT ON THE SUSTAINABILITY SIDE, CLIMATE ACTION GOAL MEETING SIDE, WHERE WE NEED TO DO THAT WITH ALL OF OUR BUSINESSES, NEW BUSINESSES COMING IN AND THEN CURRENT BUSINESSES IN TERMS OF WHAT OUR POWER IS. BECAUSE YOU'RE CONNECT IN THAT OUR POWER IS BECOMING VERY SIMILAR TO WHAT OUR WATER IS, BUT I'M HOPING IT WON'T BE LONG-TERM BECAUSE I'M HOPING ERCOT HAS A PLAN AND WE GET MORE PLANT -- INITIATE PLANTS UP AND RUNNING THAT WE'RE NOT STRUGGLING LIKE THIS FOR VERY LONG, BUT WHILE WE ARE, WHAT DO WE DO AND HOW DO WE MANAGE THAT? SO I'D BE INTERESTED TO SEE -- I LIKE BRINGING THEM UP IN THE TIER TWO, BUT I DO WANT TO BE OPEN FOR BUSINESS, ESPECIALLY DATA CENTERS, THEY DO CONTRIBUTE TO THAT TAX ROLL IN A WAY
[00:55:06]
THAT OTHER BUSINESSES DON'T. SO I THINK WE HAVE TO KIND OF TAKE A LOOK AT THIS AND REALLY SEE HOW WE'RE MOVING FORWARD ON THIS POWER INTENSIVE USERS.SO THOSE ARE GOING TO BE KIND OF MY MAIN QUESTIONS AS WE MOVE FORWARD AND MY MAIN RECOMMENDATIONS. I THINK IT'S -- I'M GLAD WE TAKE A LOOK AT IT, BUT I THINK WE DO NEED TO TAKE A LOOK AT IT IN THE LENS OF WHAT WE CAN DO, WHAT'S SAFE AND WHAT WORK LOOKS LIKE IN THESE WARM DAYS, AND POSSIBLY FREEZE -- PERIODIC FREEZE WINTERS. SO THANK YOU FOR THAT, THANK YOU FOR THE PRESENTATION.
I THINK IT'S A GREAT CONVERSATION, BUT I THINK THERE'S LIKE A WHOLE LOT OF FEEDBACK AND I'M INTERESTED TO SEE WHAT CAPS METRO HAS TO SAY TOO WHEN YOU GET
THOSE RESULTS. SO THANK YOU. >> PELÁEZ: THANK YOU.
COUNCILWOMAN ROCHA GARCIA. >> ROCHA GARCIA: THANK YOU, CHAIR.
I APPRECIATE THE SUMMARY THAT OUTLINES THE TEXAS CODE THAT ALLOWS THE CITY TO ESSENTIALLY REAUTHORIZE THE -- REAUTHORIZE OR ACTUALLY MAKE CHANGES TO THE INCENTIVE POLICY. SO I FIGURE THAT I'LL START WITH -- WELL, FIRST OF ALL, THANK YOU SO MUCH. I THINK YOU'VE DONE A WONDERFUL JOB OF TRYING TO ALIGN THE INTERNAL DATA THAT WE HAVE AND THEN THE IMPACT OR MEASURING THE IMPACT.
SO THANK YOU FOR THAT. AND I SEE THAT THERE'S MORE CLARITY IN THAT MATRIX THAT I WAS TALKING ABOUT, HOWEVER, WHEN WE TALK ABOUT THE NEW JOBS THAT ARE CREATED, ARE ALL THOSE JOBS CONSIDERED FULL TIME UNDER THE QUALIFIED EMPLOYEE
DEFINITION THEN? >> SO WE ALREADY HAVE A DEFINITION IN THE POLICY WITH FULL TIME, SO WE DO LOOK AT 2080 HOURS SO THAT'S OUR FULL-TIME DEFINITION.
ALSO, THE CURRENT POLICY ALSO REQUIRES, FOR EXAMPLE, THAT THE FULL BENEFITS PACKAGE IS OFFERED AND THAT THEY PARTICIPATE IN THE WORKER'S COMP PROGRAM, FOR EXAMPLE. SO NONE OF THAT IS PROPOSED TO CHANGES.
WE'RE PLANNING ON KEEPING THEM. >> ROCHA GARCIA: OKAY.
AND WHAT'S THE EXPECTATION OF THOSE EMPLOYEES THAT ARE RECEIVING -- EMPLOYERS THAT ARE RECEIVING TAX ABATEMENTS AND REBATES TO KEEP THOSE EMPLOYEES FULL-TIME AND POTENTIAL LAYOFFS THAT MIGHT COME WITHIN THE AGREEMENTS? REMIND ME ABOUT THAT.
>> SURE. NOW, AGAIN, WE SHIFTED THE POLICY, THE CURRENT POLICY SO THAT IN ORDER FOR SOMEBODY TO RECEIVE THEIR INCENTIVE THEY HAVE TO MEET THAT CAP X AMOUNT AS WELL AS THE JOBS AND ENSURE THEY'RE AT THE WAGES.
SO THAT'S KIND OF A 1212-31 WHATEVER YEAR COMPONENT. AND THEN THE ONGOING EVALUATION WHICH WE MONITOR TWICE A YEAR, WE DON'T A MID --R REVIEW AND THEN THE 12-31 REVIEW, AND THAT'S A CALCULATION WHERE THE TAX ABATEMENT OR REBATE IS COMPLETED. WE DO REQUIRE THAT THEY AGAIN MAINTAIN THOSE JOBS, THEY HAVE TO BE AT THAT WAGE LEVEL AS WELL. IF SOMEBODY FALLS BELOW THAT WE CAN WORK FOR A CURE PERIOD, WE WORK CLOSELY WITH THEM.
WE CAN -- THERE'S A VARIETY OF THINGS THAT THEY CAN DO. THEY MAY NOT EARN THAT ABATEMENT OR THAT INCENTIVE THAT YEAR, AND THEN THE WAY WE CURRENTLY HAVE IT IS IF THERE'S TWO YEARS IN A ROW WE DON'T EARN IT, WE CAN CANCEL, BASICALLY MOVE AWAY FROM THE INCENTIVE. WE HAVE ALSO DONE WHERE WE DO MUTUAL TERMINATIONS AS FAR AS THAT GOES. AND THEN, OF COURSE, ALL OF OUR AGREEMENTS HAVE RECAPTURES AS WELL. SO THERE HAVE BEEN THOSE CASES WHERE WE'VE RECAPTURED. WE DO POST PUBLICLY ALL OF THE INCENTIVE PERFORMANCE USUALLY AROUND THE END OF JULY EVERY YEAR BASED ON THAT ACTUAL PERFORMANCE.
SO WE DO HAVE THAT OUT ON THE WEBSITE AS WELL. >> ROCHA GARCIA: WONDERFUL, THANK YOU. I UNDERSTAND THAT THE TWICE PER WEEK ON-SITE HYBRID FOR THE 312 TAX ABATEMENTS, BUT WHAT ABOUT THE PROPOSED GUIDELINES OF RESIDING IN THE CITY OF SAN ANTONIO, ETJ OR BEXAR COUNTY FOR THE CHAPTER 380 TAX REBATES?
>> SO FOR THAT AGAIN WE HAVE A LITTLE BIT MORE FLEXIBILITY AND SO THIS ISN'T AN OR SITUATION. IF SOMEBODY IS REPORTING TO THE SITE, 60% OF THE TIME, THEY MAY LIVE IN SEATTLE, WHEREVER THE CASE MAY BE. BUT IF THEY'RE HERE AND THE IDEA IS THEY'RE LIVING IN CORPORATE HOUSING, THEY'RE STILL, YOU KNOW, SPENDING THEIR MONEY ON UBER OR WHATEVER THE CASE MAY BE, GOING TO THE RESTAURANTS, HOPEFULLY THEY'RE ALL LOCAL BUSINESSES, BUT IF SOMEBODY IS NOT GOING TO THE LOCATION 60% OF THE TIME, WE STILL WANT TO MAKE SURE THAT WE'RE RECEIVING THAT BENEFIT, THAT
[01:00:03]
THE CITY OF SAN ANTONIO IS BENEFITING FROM THAT EMPLOYEE.SO IN THAT CASE THEN THEY HAVE TO RESIDE WITHIN THE CITY OF SAN ANTONIO, THE ETJ OR BEXAR COUNTY. SO WE RECENTLY, FOR EXAMPLE, WERE WITH THE MAYOR ON A BUSINESS RETENTION AND GROWTH VISIT AND THE COMPANY REPORTED THAT THEIR EMPLOYEES ARE COMING INTO THE OFFICE ABOUT 40% OF THE TIME.
THESE WERE REALLY HIGH-PAYING JOBS. VERY -- VOLUNTEER A LOT IN THE HALL LATIN COMMUNITY. SO WE WANT TO MAKE SURE THEY'RE LIVING IN CLOSE PROXIMITY SO WE CAN TAKE CARE OF THAT. IT'S A BIT OF AN OR.
THAT? >> WE DO HAVE COMPANIES THAT HAD RESIDENCY REQUIREMENTS FROM YEARS AGO. SO OUR COMPLIANCE TEAM WORKS WITH THE COMPANY, WE CONFIRM THE ADDRESS. WE CAN ACTUALLY RUN IT THROUGH GIS TO CONFIRM THAT THE CITY OF SAN ANTONIO OR IN THIS CASE IT WOULD BE ETJ OR BEXAR COUNTY.
SO WE WOULD WORK WITH HAVING THE SHAPE FILE AND LITERALLY RUNNING ALL THOSE ADDRESSES
THROUGH AND THEN CONFIRMING IT. >> ROCHA GARCIA: OKAY.
SO AS FAR AS CAPPING THE REBATES AND ABATEMENT, WHAT ARE SOME OF THE POTENTIAL
DRAWBACKS IF WE MADE THAT REVISION. >> FOR CAPPING THE REBATE EARLY IT'S NOT SUCH A DRAWBACK FOR THE CITY. IT ACTUALLY ALLOWS FOR US TO BE ABLE TO BUDGET BETTER, ALL OF THOSE GOOD THINGS. IT'S REALLY FOR THE COMPANY.
YOU KNOW, IF A COMPANY COMES IN AND SAYS ON THEIR APPLICATION THAT THEY'RE GOING TO SPEND -- I'M GOING TO USE EASY NUMBERS, $100 MILLION, YOU KNOW, WE DO THE CALCULATION AND LET'S JUST SAY THEY'RE GOING TO EARN FIVE MILLION DOLLARS IN INCENTIVE. BUT THEN THEY ACTUALLY SPEND 200 OR 300.
CONTRACTUALLY THEY ONLY HAVE TO SPEND THE 100. AND RIGHT NOW THEY'RE ABLE TO REAP THE BENEFITS OF THAT ADDITIONAL INVESTMENT. AND SO IT REALLY JUST BEHOOVES THE COMPANY ON THEIR APPLICATION TO BE AS ACCURATE AS POSSIBLE.
SO THE DOWNSIDE FOR THE CITY ISN'T REALLY TOO BAD. SOME COMPANY MIGHT DECIDE THAT THEA DON'T WANT -- BUT THIS IS SOMETHING THAT'S COMMON FOR A LOT OF COMMUNITIES. SO IT'S REALLY AN UPSIDE FOR THE CITY AND NO SIGNIFICANT
DOWNSIDE. >> ROCHA GARCIA: OKAY. FOR THE POWER INTENSIVE USERS, HOW DID YOU ARRIVE AT THE 200 JOBS AND DO WE ALSO APPLY THE 2092 MINIMUM WAGE
AND 10-MILLION-DOLLAR CAPITAL INVESTMENT? >> YEAH.
SO IN ORDER FOR US TO LOOK AT THE GENERAL TAX ABATEMENT OR THE REBATE, THE TIER 1 REQUIREMENTS NEED TO BE MET. SO THAT INCLUDES THAT HOURLY WAGE, THAT CAPITAL INVESTMENT AND THOSE JOBS. THE ONLY EXCEPTION TO THAT IS, AGAIN, THOSE REALLY HIGH-PAYING JOBS AT 100% OR 150% WHERE WE MIGHT LOOK AT A PER-JOB -- THAT MIGHT BE SOMETHING THAT'S IN AN OFFICE THAT ISN'T GOING TO INVEST THAT $10 MILLION.
IT MIGHT BE SOME MINIMAL BUILDOUT OR SOMETHING LIKE THAT IN THE BUILDING THAT COUNCILWOMAN WANTS RENOVATED DOWNTOWN. SO THE 200 WAS JUST AS WE CONTINUED TO LOOK AT WHAT WERE SOME OF THE -- A LITTLE BIT MORE SUBJECTIVE IN THIS CASE OF WHEN YOU START LOOKING AT HIGHER PAYING JOBS, WHAT DOES THAT REALLY ENTAIL? WHERE IS THAT KIND OF TRADE-OFF FOR THE POWER INTENSIVE USERS. WHEN WE WENT BACK AND LOOKED AT SOME OF THOSE PROJECTS, THEY ALL HAD AT LEAST A COUPLE HUNDRED JOBS IF NOT MORE, EXCEPT FOR ADMITTEDLY DATA CENTERS. BUT WHEN YOU DO LOOK AT THE PIPELINE THERE ARE A COUPLE OF DATA CENTERS THAT DO HAVE OVER 200 JOBS. SO THAT WAS JUST KIND OF A LITTLE BIT OF AN INVESTMENT BASED ON PIPELINE AND SOME THINGS AND STARTED BOUNCING
IT OFF OF THE STAKEHOLDERS. >> ROCHA GARCIA: AND HOW DO WE INCORPORATE READY TO WORK? HOW DO WE PRIORITIZE COMPANIES THAT SAY THEY'LL
PLEDGE TO HIRE FROM READY TO WORK? >> YEAH.
SO IN THE CURRENT POLICY WE HAVE THE WRAPAROUND SERVICES WHERE THE COMPANIES ARE REQUIRED TO INVEST THE EQUIVALENT OF 10% OF THEIR INCENTIVE TO WRAPAROUND SUPPORT FOR THEIR EMPLOYEES. AND THAT CAN EITHER BE WORKFORCE, CHILDCARE OR TRANSPORTATION. AND WE ARE NOT RECOMMENDING ANY PROPOSED REVISIONS TO THAT. SO IF SOMEBODY WANTS TO DO PAID APPRENTICE SHIPS AND THAT'S HOW THEY WANT TO& INVEST THAT 10% EQUIVALENT, THAT'S FANTASTIC.
WE WOULD CERTAINLY WORK WITH THEM. I CAN TELL YOU WE INCLUDE OUR READY TO WORK COLLEAGUES IN A LOT OF THE MEETINGS, MOST MEETINGS, SO THAT WE
[01:05:01]
ARE ENGAGING THE COMPANY EARLY ON WITH WORKFORCE AND THEN CONTINUE TO HAVE THAT RELATIONSHIP AS WE DO THE BUSINESS RETENTION AND GROWTH AND SO FORTH.>> ROCHA GARCIA: THANK YOU SO MUCH. THANK YOU, CHAIR.
>> WHYTE: THANKS, CHAIR. FOLLOWING UP ON SOME OF THESE POWER INTENSIVE USERS.
HOW MANY POWER INTENSIVE USERS QUALIFY FOR THESE INCENTIVES TODAY?
>> SO RIGHT NOW WE JUST HAD TWO THAT WOULD BE CONSIDERED --T WERE PUBLIC THAT WE DID AWARD THIS -- THAT COUNCIL APPROVED THE LAST CYCLE OF TWO YEARS WERE JCB AND TOYOTA, BOTH WOULD HAVE BEEN CONSIDERED POWER INTENSIVE USERS UNDER THIS GUIDELINE
OF 40 MEGAWATTS OR HIGHER. >> WHYTE: SO WITH THESE CHANGES, WE'RE RAISING THE THRESHOLD? WE'RE MAKING IT MORE DIFFICULT FOR THESE FOLKS TO
GET THE INCENTIVES? >> I WOULDN'T SAY MORE DIFFICULT.
THEY JUST HAVE TO HIT A SLIGHTLY HIGHER THRESHOLD. SO IT'S STILL THE 22.92, THE 10 MILLION IN INVESTMENT, BUT INSTEAD OF THE 50 JOBS, IT IS THE 200 JOBS.
>> WHYTE: SO I GUESS MY QUESTION IS WHY BECAUSE WE DON'T HAVE THAT MANY THAT
QUALIFY RIGHT NOW AND WE'RE RAISING THE THRESHOLD. >> SO IT'S REALLY JUST HOW DO WE PROTECT THE POWER. AND AGAIN, WHEN WE LOOKED AT OUR INTENT, THE DIRECTION THAT WAS GIVEN TO US WHEN WE WENT THROUGH THE STRATEGIC FRAMEWORK, IT WAS ABOUT JOBS. AND SO WHAT DOES THAT REALLY MEAN? SO TWO YEARS AGO THERE WAS SIGNIFICANT -- SIGNIFICANT CONVERSATION AROUND WHAT GOOD-PAYING JOBS MEANT AND JUST GOOD NUMBER OF JOBS. AND SO WE KIND OF WENT BACK TO THAT AND REALLY EMPHASIZED AND THEN AGAIN LOOKED AT THE PIPELINE, LOOKED AT THE PROJECTS THAT HAD BEEN INCENTIVIZED THE LAST HANDFUL OF YEARS, NOT JUST THE TWO THAT I MENTIONED. AND YOU'RE RIGHT, THERE'S NOT A LOT OF POWER INTENSIVE USERS, BUT IT'S SIGNIFICANTLY INCREASING.
SO -- >> YEAH. I WOULD JUST SAY THAT I THINK WE SHOULD BE CAREFUL ON DISINCENTIVIZING SOME OF THESE COMPANIES FROM COMING HERE. BECAUSE I DO THINK THAT THEY CAN ADD A LOT TO THE COMPANY TAX REBATES EMBASSY, JOBS, ET CETERA -- TAX BASE, JOBS, ET CETERA.
IT DEFINITELY CAUGHT MY ATTENTION THAT WE WERE RAISING THE THRESHOLD THERE.
I THINK IT'S SOMETHING TO THINK ABOUT. >> SO ONE OF THE THINGS WE'RE RUNNING INTO IS IT'S GOING TO BECOME AN "OR." WE'RE EITHER GOING TO BE ABLE TO SUPPORT A LARGE MANUFACTURER WITH A LOT OF JOBS, OR WE'RE GOING TO HAVE TO CHOOSE, YOU KNOW, MAYBE ANOTHER USER THAT DOESN'T HAVE THE SAME KIND OF JOBS.
SO AS WE'RE TRYING TO BALANCE THAT AND WE'VE HAD A LOT OF CONVERSATIONS WITH OUR PARTNERS AT GREATER SATX, WITH CPS, AND WHAT THAT LOOKS LIE AND THIS IS JUST ONE TOOL. AGAIN, THERE'S A LOT OF CONVERSATIONS AROUND WHAT THIS MEANS LEGISLATIVELY AS PART OF THE LEGISLATIVE AGENDA.
AND SO IT'S TRYING TO BALANCE THAT AND SO WE'RE JUST PUTTING A LITTLE BIT
MORE EMPHASIS ON THE JOBS. >> WHYTE: OKAY. I'LL LEAVE IT THERE FOR NOW, BUT WE CAN CONTINUE THAT CONVERSATION. IT LOOKS LIKE MORE PRIORITY HERE ON SALARY AND WAGES THAN RETENTION AND REINVESTMENT.
IS THAT FAIR? AND IF YOU AGREE WITH THAT, WHY?
>> I WOULDN'T SAY IT'S AN EITHER OR. AGAIN, I GUESS FOR US MOST PROJECTS -- SO THE $10 MILLION, FOR EXAMPLE, THIS ISN'T MEANT TO BE THE PANACEA, THE PROJECT, BUT WHEN YOU START LOOKING AT THE BENEFIT A COMPANY RECEIVES FROM A $10 MILLION -- AGAIN, THIS IS ON THAT AD VALOREM, REAL AND PERSONAL PROPERTY, ONCE YOU GET TO 10 MILLION THE BENEFIT ISN'T REALLY THERE, THE RETURN ON INVESTMENT ISN'T THERE FOR THE BUSINESS BY THE TIME THEY PAY FOR THEIR LEGAL, THEIR ACCOUNTING, THE COMPLIANCE, IT'S SPREAD OUT OVER 10 YEARS. SO WHEN YOU DO THAT KIND OF COST BENEFIT ANALYSIS, A LOT OF THAT -- AGAIN, THAT 10 MILLION REALLY IS WHERE YOU START TO SEE THE BENEFIT FOR SO IF THERE IS A CAMPUSING BUSINESS THAT'S LOOKING AT AN EXPANSION, WE ABSOLUTELY WANT TO BE AT THE TABLE HAVING THAT CONVERSATION.
THE DIFFERENCE IS WE WANT THE MAKE SURE IT'S THAT KIND OF TRUE PROJECT.
WE DON'T WANT TO NECESSARILY BE PROVIDING INCENTIVES FOR JUST A STANDARD INVESTMENT THAT NEEDS TO BE MADE. YOU KNOW, SO IT'S TRYING TO, AGAIN, TRY TO FIND THAT
[01:10:06]
BALANCE WITH HOW DO WE USE THIS KIND OF SCARE RESOURCE IN THE MOST STRATEGIC WAY.>> WHYTE: YOU AND I HAVE TALKED ABOUT THIS IN THE PAST AND WALKING SOME BUSINESSES WALK OUT OF SAN ANTONIO. AND SO I WANT TO MAKE SURE THAT THESE GOOD COMPANIES THAT WE HAVE HERE STAY. AND I DON'T THINK THAT SHOULD GET LOST IN THIS INCENTIVES CONVERSATION MOVING FORWARD.
SOME OF THESE COMPANIES IN THE PAST THAT WE'VE OFFERED THESE INCENTIVES TO, ALONG THOSE LINES, DO WE HAVE ANY DATA ON HOW LONG THEY TYPICALLY DO STAY IN THE
CITY? >> SURE. WE CAN -- SO YEAH, WE CAN GO BACK TO THOSE PROJECTS AND HOW MANY ARE STILL HERE. AS SARA MENTIONED WITH THE FCI, THESE COMPANIES MAKE INVESTMENTS SO USUALLY WHEN WE'RE PROVIDING INCENTIVES THEY DO TEND TO STAY, YOU KNOW, AND CONTINUE TO GROW OR IN SOME CASES NOT GROW.
AND THEN THOSE ARE THE ONES THAT WE DO THE MUTUAL TERMINATION OR MOVE ON.
BUT WE CAN CERTAINLY FOLLOW UP WITH THAT INFORMATION. >> WHYTE: THAT WOULD BE GREAT. THE LAST QUESTION IN THE LIST OF STAKEHOLDERS UP THERE YOU TALKED ABOUT THE CHAMBERS HAVING INPUT ON THIS.
CAN YOU TELL US WHAT SOME OF THAT INPUT WAS? >> YEAH, SO --
>> WHYTE: I MEAN IS THIS -- >> YEAH, WE WENT THROUGH BASICALLY A VERY SIMILAR PRESENTATION TO THEM AND JUST KIND OF WHAT DO YOU THINK OF THIS, WHAT SHOULD WE DO. AGAIN, THE CHAMBERS WERE THE
MOST PROBABLY VOCAL ON THE POWER INTENSIVE USERS. >> WHYTE: OKAY.
>> AGREED THAT WE DEFINITELY WANT TO SUPPORT THE BUSINESSES.
IT WAS ACTUALLY SOME OF THEIR FEEDBACK WE STARTED WHAT DOES THAT MEAN BECAUSE OTHER COMMUNITIES EXCLUDE OR EVEN LOCAL POLICIES EXCLUDE CERTAIN USERS.
SO THE CONVERSATION WAS REALLY MORE AROUND THAT MESSAGING FOR OPEN FOR BUSINESS, SO THAT'S HOW WE ENDED UP LANDING AND SHIFTING INTO THAT 200 JOBS.
THE ONLY -- THEY WERE ALSO FROM THE CHAMBER PERSPECTIVE, THE COMPLIANCE.
THE EASE OF COMPLIANCE AND THE COMPETITIVENESS WAS, AS YOU CAN REALLY IMAGINE, GOING BACK TO THAT OPEN FOR BUSINESS MESSAGING, I WOULD SAY THAT WAS THE TREATMENT
AROUND THAT MOST OF US. >> WHYTE: GOT IT. THANKS, CHAIR.
>> PELÁEZ: THANK YOU. >> COUNCILMEMBER, CAN I CLARIFY SOMETHING REAL QUICK. THE FOLLOW-UP YOU WERE ASKING FOR, IT'S COMPANIES THAT WE PROVIDED INCENTIVES TO THAT HAVE SAID POST-INCENTIVE OR WORKED THEIR WAY AND ACHIEVED THE METRICS ASSOCIATED WITH THE INCENTIVE?
>> WHYTE: YEAH, I JUST WANT TO LOOK AT -- LET'S SAY IN THE PAST DECADE, COMPANIES THAT WE'VE GIVEN THESE INCENTIVES TO ARE THEY STILL HERE NOW, IF NOT, WHY.
>> GOT IT. >> PELÁEZ: OKAY. SO BEFORE WE CONSIDER THIS FOR A VOTE, I WANTED TO MAKE SURE THAT SARA -- I MEAN ULTIMATELY THE PLANS WE'RE DESIGNING FOR YOU TO TAKE OUT AND PITCH TO COMPANIES AROUND THE PLANET.
AND I'M SURE AS WE'VE HEARD YOU GUYS HAD PLENTY OF OPPORTUNITY TO WEIGH IN HERE. MY QUESTION FOR YOU IS, DO YOU GUYS THEN TAKE THIS AS -- HOW DO THESE COMPARE TO THE GUIDELINES OF OUR COMPETITORS? THE OTHER CITIES WHO ARE ALSO CHASING THE SAME OPPORTUNITIES.
>> YEAH, I THINK THESE INCENTIVE GUIDELINES ARE PRETTY CONSISTENT WITH WHAT YOU WOULD FIND ACROSS THE STATE OF TEXAS FOR PARTICULARLY FOR LARGER CITIES. FOR THOSE CORE CITIES, YOU KNOW, EVEN IN THE LARGE CITIES OUTSIDE OF TEXAS. I THINK YOU WOULD FIND THESE TYPES OF REQUIREMENTS TO BE PRETTY CONSISTENT. FOR SMALLER COMMUNITIES, YOU FIND LESS OF THOSE REQUIREMENTS FOR BUSINESSES FOR A LOT OF DIFFERENT REASONS.
IN MY OPINION, THE MOST IMPORTANT PART OF THIS IS THAT WE ARE COMPETITIVE AND THAT COMPANIES LOOK AT THIS AND DON'T IMMEDIATELY OPT OUT BECAUSE THEY FEEL LIKE THE REQUIREMENTS ARE TOO STRINGENT. AND I FEEL LIKE BRENDA AND THE TEAM HERE ARE DOING A GOOD JOB OF BALANCING -- MAKING SURE WE'RE GETTING THOSE TYPES OF JOBS THAT THE COMMUNITY DESIRES FOR OUR COMMUNITY AND MAKING SURE THAT WE'RE ALSO ABLE TO BE VERY COMPETITIVE AND RESPONSIVE.
I'LL JUST QUICKLY NOTE, ONE OF THE QUESTIONS THAT CAME UP WAS, YOU KNOW, ARE WE MORE COMPETITIVE NOW WITH THE POLICIES THAT WE'VE PUT IN PLACE.
[01:15:03]
I JUST HAD A CONVERSATION WITH THE OFFICE OF THE GOVERNOR, WHICH IS ONE OF OUR PARTNERS ON LEAD GENERATION, AND WE HEARD FROM THEM THAT WE HAVE SEEN A TREMENDOUS UPTICK IN THE LAST, LET'S SAY, SIX MONTHS IN NEW LEADS COMING FROM THE GOVERNOR'S OFFICE. AND WHEN WE ASK THEM, SAID WOW, YOU GUYS ARE BUSIER THAN EVER, THEY SAID NO, ACTUALLY, MORE PEOPLE ARE WANTING TO HEAR FROM SAN ANTONIO AND GET -- UNDERSTAND SAN ANTONIO'S VALUE PROPOSITION.AND SO WHAT THAT TELLS ME IS, ONE, OUR BRANDING AND MESSAGING IS WORKING, AND TWO, WE'RE ABLE TO PUT OUT INCENTIVES TO THAT CONSULTANT BASE THAT ARE MORE COMPETITIVE THAN IN THE PAST. SO I FEEL GOOD ABOUT THE OVERALL DIRECTION. WE'RE WORKING THROUGH THE COUPLE OF QUESTION MARKS HOW
WE MAKE SURE WE REMAIN THE MOST COMPETITIVE. >> PELÁEZ: THANK YOU.
COUNCILMEMBER CASTILLO HAS A FEW QUESTIONS. COUNCILWOMAN?
>> CASTILLO: IS IT MY TURN? >> PELÁEZ: YES, MA'AM, GO
AHEAD. >> CASTILLO: THANK YOU, CHAIR, AND THANK YOU, BRENDA, FOR THE PRESENTATION AND OPPORTUNITIES TO UPDATE. IN TERMS OF THE WAGE UPDATES, WILL THESE WAGE UPDATES APPLY TO BOTH PART-TIME EMPLOYEES AND
CONTRACTED EMPLOYEES? >> SO WE ONLY FOCUS -- SO WE ONLY INCENTIVE INCENTIVIZE FULL-TIME POSITIONS. IN ORDER TO RECEIVE AN INCENTIVE, 100% OF THOSE JOBS NEED TO BE AT THOSE HIGHER WAGES. AND SO VERY FEW OF THE
PROJECTS WE SEE HAVE PART-TIME. >> CASTILLO: THANK YOU, BRENDA. I THINK THERE WOULD BE VALUE IN EXPANDING TO PART-TIME EMPLOYEES. COUNCILMEMBER WHYTE AND I HAD A VALUABLE CONVERSATION WITH REXSA IN TERMS OF HOUSING AND ACCESS TO HOUSING.
IT'S INCREASING WAGES AND OPPORTUNITY. SO I THINK THERE WOULD BE VALUE IN EXPANDING THAT FOR PART-TIME EMPLOYEES AS WELL. I UNDERSTAND THAT'S NOT TYPICAL, HOWEVER, IN THE CASE THERE ARE PART-TIME EMPLOYEES, I THINK THERE IS BENEFIT TO ENSURING THEY RECEIVE UP TO THE CITY'S MINIMUM WAGE.
I WANTED TO ALSO THANK MATT AND THANK YOU, BRENDA, FOR SHARING THAT YOU WILL GET BACK TO US ON WHAT'S POSSIBLE WITH WHAT'S BEING RECOMMENDED.
BUT THERE IS A SUGGESTION FROM [INAUDIBLE] ON A PREVAILING WAGE AMENDMENT WHICH WOULD HELP US -- WHICH WOULD RATHER PROVIDE AT LEAST $18 AN HOUR TO EMPLOYEES. AND THEN IN REGARDS TO THE INCENTIVE FOR INDUSTRIES THAT RELY HEAVILY ON OUR UTILITIES, I UNDERSTAND -- WHAT'S BEING PRESENTED I FEEL LIKE IT'S NOT STRONG ENOUGH, BUT I UNDERSTAND BASED OFF THE FEEDBACK THAT YOU'VE HEARD FROM MULTIPLE PEOPLE AND WILL CONTINUE TO GATHER THIS IS, YOU KNOW, A COMPROMISE. BUT I THINK IT'S IMPORTANT THAT WE LET FOLKS KNOW THAT, YOU KNOW, WE ARE NOT JUST GOING TO INCENTIVIZE THE EXCESS USE OF OUR ELECTRICITY WHILE WE ALSO TELL RESIDENTIAL RATEPAYERS THEY NEED TO CONSERVE.
YOU MENTIONED CONVERSATION ABOUT THE CONSISTENCY WITH OUR CLIMATE ADAPT TAGS PLAN, BUT I UNDERSTAND THE NEED FOR A COMPROMISE TO MEETS WHAT EVERYONE IS ASKING FOR IN THE MIDDLE. IN TERMS OF THE UPDATES OR THE RECOMMENDATIONS PRESENTED BY UNA, I KNOW YOU ARE GOING TO PROVIDE US BEAD YACK ON THERE, BUT I THINK -- FEEDBACK BUT I THINK THERE'S PROVIDED OPPORTUNITIES WHERE THERE IS OPPORTUNITY PARTICULARLY AROUND ENSURING IT'S IN ALIGNMENT WITH THE WATER BREAK ORDINANCE. AND THEN ALSO FOLLOWING SOME OF THE OSHA STANDARDS.
SO I KNOW YOU'LL DIVE INTO THE DETAILS OF THAT, BUT I WOULD LIKE FOR US TO ENSURE WE ARE ALSO IMPLEMENTING THE HEAT ILLNESS PREVENTION. IS THAT SOMETHING WE COULD
SEE WITHIN THE B SESSION PRESENTATION? >> SO RIGHT NOW WE'RE EVALUATING THAT. AGAIN, UNFORTUNATELY WE DIDN'T HAVE THAT FEEDBACK WHEN WE MET WITH THEM SO WE JUST RECEIVED IT THIS MORNING.
SO WE ARE EVALUATING THAT, AND AGAIN, AS YOU MENTION THAT COMPROMISE.
WHAT WE'RE LOOKING AT IS, TO YOUR POINT, WHAT'S ALREADY THERE, THE LEGALITY AND THE COMPLIANCE AND COMPETITIVENESS WITH GREATER SATX AND HOW DO WE BALANCE
[01:20:04]
THAT. WE WERE ABLE TO START THAT DUE DILIGENCE ON THAT ITEM THIS MORNING. SO WE WILL AT B SESSION BE ABLE TO ADDRESS THAT.ABSOLUTELY. >> CASTILLO: THANK YOU. IN TERMS OF THE LOCAL HIRING REQUIREMENTS THAT THEY ARE RECOMMENDING, MY UNDERSTANDING IS CITY OF FORT WORTH ALSO APPROVED A HIGHER [INAUDIBLE]. I KNOW THE LEGAL TEAM IS GOING TO DIVE INTO THE LEE BALLOT OF IT, BUT OTHER EXAMPLES WHERE THEY HAVE INCREASED THE LOCAL HIRING REQUIREMENTS. AND THEN IN TERMS -- ON SLIDE 6, FOR EXAMPLE, FOR TIER 1 IT HAS 10 MILLION AND 50 JOBS CREATED.
CAN YOU HELP ME UNDERSTAND WHY WHEN YOU MOVE TO TIER 2 THROUGH 6 THAT IT'S OR AND
NOT AND? >> I'M GOING TO JUMP TO THE NEXT SLIDE AND HOPEFULLY YOU CAN SEE THE TABLE THERE. SO THE WAY WE DO THIS IS THE TIER 1 IS THE MINIMUM.
SO THE 2292, THE 10 MILLION AND 50 JOBS IS KIND OF THE MINIMUM FOR US TO LOOK AT THESE PARTICULAR INCENTIVES. THE ABATEMENT OR THE REBATES.
THE PHOENIX TIER IS ARENA THEY ARE IN OR IS DEPENDING UPON WHERE A COMPANY FALLS, THEY GET THE BEEN FIT OF THE HIGHER AMOUNT. IN THE EXAMPLE, FOR EXAMPLE ON SLIDE 7 BECAUSE THE CAPITAL INVESTMENT FALLS IN THAT TIER 4, THAT ALLOWS THE TOY TO EARN THAT 50% BASE. SO THAT'S WHY YOU HAVE AND FOR THE MINIMAL, BUT THEN OR
MOVING FORWARD. >> CASTILLO: THANK YOU FOR THAT CLARIFICATION.
I'M CURIOUS IF THERE IS OPPORTUNITY WITHIN THESE CHAPTERS TO CREATE SOME TYPE OF ASSURANCE FOR THESE EMPLOYEES. BECAUSE WE CAN TALK ALL FINE ABOUT THE SPECIFIC BUSINESS, BUT THEY ESSENTIALLY LAID OFF A BUNCH OF OUR CONSTITUENTS VIA ZOOM OR WEB EX, AND WHILE THEY DID PROVIDE A GOOD HOURLY WAGE, THEY LEFT SAN ANTONIO WORKERS WITHOUT WORK VIA ZOOM.
I WONDER IF YOU CAN TALK ABOUT WHAT ASSURANCES WE CAN GUARANTEE FOR RESIDENTS NOT TO BE LAID OFF WITH A ONE-DAY NOTICE VIA ZOOM BECAUSE THESE ARE BUSINESSES THAT ARE RECEIVING TAX ABATEMENTS AND BEING SENATE I HAVEIZED TO COME HERE AND BEING ABLE TO LAY OFF CONSTITUENTS WITHIN A WEEK OR TWO NOTICE.
IF I CAN RECEIVE A BRIEFING OFF LINE, I WOULD APPRECIATE THAT.
>> ABSOLUTELY. >> CASTILLO: THANK YOU, CHAIR.
>> PELÁEZ: THANK YOU, COUNCILWOMAN. IN CLOSING, I'LL TELL YOU MY LITMUS TEST FOR THESE AND YOU'VE HEARD ME SAY THIS BEFORE, IT'S THE TOYOTA TEST. SO IF WE WERE TO TAKE THESE GUIDELINES BACK IN TIME TO 2002 OR 3 WHEN WE NEGOTIATED THESE WOULD THESE GUIDELINES MADE IT MORE -- FOR TOYOTA TO INVEST IN SAN ANTONIO. IF THESE GUIDELINES END UP BECOMING A TOOL THAT DISINCENTIVE I'VE -PEOPLE AND IT SERVES AS A GIFT TO THE COMMUNITIES AGAINST WHOM OPS WE ARE COMPETING, I THINK WE WOULD BE MALPRACTICE IN THE UPGRADES WE'VE MADE TODAY AND I THINK WE'RE ON THE RIGHT TRACK.
THANK YOU FOR YOUR HARD WORK ON THIS. THANK YOU, SARA.
COUNCILMEMBER ROCHA GARCIA SAID SHE HAD SOME ADDITIONAL QUESTIONS THAT SHE WAS GOING TO ASK BUT SHE HAD TO STEP OUT MOMENTARILY. TIME IS VALUABLE SO WE'RE GOING TO GET HER QUESTIONS OFF LINE, THAT'S THE WORD I'M LOOKING FORMENT I DO THINK WE NEED TO VOTE TO ADOPT THIS? NO, THIS IS JUST A BRIEFING.
>> THIS IS JUST A BRIEFING. THERE WILL BE A B SESSION IN A COUPLE WEEKS AND THEN A
SESSION CONSIDERATION. >> PELÁEZ: WE'RE MOVING ON TO OUR NEXT ITEM, A DISCUSSION ABOUT CAPACITY BUILDING AND BONDING ASSISTANCE.
>> GOOD AFTERNOON. ECONOMIC AND WORKFORCE COMMITTEE MEMBERS, MICHAEL AND I'M AN ADMINISTRATOR FOR THE CITY'S ECONOMIC DEVELOPMENT DEPARTMENT.
THIS BRIEFING WILL PROVIDE AN UPDATE ON THE CITY'S CAPACITY BUILDING AND BONDING CONTRACTS AND MANAGED IN PARTNERSHIP WITH THE SAN ANTONIO ECONOMIC DEVELOPMENT CORPORATION AND ADD MINISTERED BY ALAMO SURETY BONDS.
[01:25:03]
LET'S PROVIDE BACKGROUND ON BONDING IN GENERAL. THE STATE OF TEXAS MANDATES CONSTRUCTION THESE REQUIREMENTS SERVE TO GUARANTEE A VENDOR'S BID AMOUNT AS WELL AS CAPABILITIES TO PERFORM. THE COST TO OBTAIN THESE BONDS REQUIRE BUSINESSES TO HAVE AVAILABLE CAPITAL AS WELL AS CERTAIN LEVELS SUCH AS CREDIT SCORES, SERVICE BARRIERS FOR SMALL MINORITY-OWNED BUSINESSES TO PARTICIPATE.THIS FEEDBACK HAS BEEN REFLECTED IN PREVIOUS SBEDA STUDIES.
TO ADDRESS THESE, THE CITY IMPLEMENTING A BONDING ASSISTANCE PROGRAM IN 2011 AS PART OF A DIRECTIVE FROM THE 2010 SBEDA ORDINANCE AMENDMENTS.
WHILE THAT WAS HELPFUL FOR SMALL BUSINESSES TO LEARN HOW TO IMPROVE BOND AVAILABILITY, IN 2020 THE SMALL BUSINESS COMMUNITY APPROACHED THE CITY TO OFFER A MORE COMPREHENSIVE APPROACH. AS A RESULT A WORK GROUP WAS ESTABLISHED CONSISTING OF CITY STAFF FROM THE FINANCE, ECONOMIC DEVELOPMENT AND PUBLIC WORKS DEPARTMENT AS WELL AS THE BEAR CONTRACTING COALITION, SURETY AGENTS AND DISCUSSION CONTRACTORS. -- CONSTRUCTION CONTRACTORS. TO OFF SET FUNDS INCURRED WHEN BIDDING ON CITY PROJECTS, CALLED FOR THE WRAP-AROUND SERVICES EMBEDDED TO ENSURE IT'S COMPREHENSIVE. LAST THEY CALLED FOR THE CITY TO ISSUE A REQUEST FOR PROPOSAL TO IDENTIFY A PROGRAM MANAGER AND PROVIDE INNOVATIVE SOLUTIONS. TO IMPLEMENT THE WORK GROUP'S MEMBER RACES, CITY COUNCIL AUTHORIZED A FUNDING AGREEMENT WITH THE SAN ANTONIO ECONOMIC DEVELOPMENT CORPORATION ON JUNE 23, 2022 TO ESTABLISH A NEW BONDING ASSISTANCE PROGRAM. OF THE FUNDING AGREEMENTS TOTAL VALUE, $500,000 WAS UTILIZE TO DO ESTABLISH A REVOLVING POOL OF FUNDS FOR THE PARTICIPANTS TO ACCESS.
AND $100,000 WAS UTILIZED FOR PROGRAM ADMINISTRATION SERVICES OVER A TWO-YEAR PERIOD. THE NECESSITY FOR A FUNDING AGREEMENT WITH THE SAN ANTONIO ECONOMIC DEVELOPMENT CORPORATION IS DUE TO TEXAS LAW WHICH PROHIBITS A GOVERNMENT ENTITY FROM LENDING CREDIT TO OFF SET BONDING REQUIREMENTS FOR A VENDOR AND OUR AGREEMENT WITH THE SAN ANTONIO ECONOMIC DEVELOPMENT CORPORATION OVERCOMES THESE STATUTORY LIMITS.
JIM SWINDLE DOES BUSINESS WITH ALAMO SURETY BONDS AND THE SAN ANTONIO ECONOMIC DEVELOPMENT CORPORATION AMENDED THIS AGREEMENT WITH ALAMO SURETY BONDS ON SEPTEMBER 9 TO EXTEND THE PROGRAM FOR ONE ADDITIONAL YEAR AND HAVE AN ADDITIONAL 50,000 IN PROGRAM ADMINISTRATION SERVICES. JIM HAS OVER 30 YEARS OF SURETY EXPERIENCE AND HAS OWNED ALAMO SURETY BONDS FOR OVER 20 YEARS.
HE'S DONE THESE TYPE OF PROGRAMS WITH THE TEXAS DEPARTMENT OF TRANSPORTATION AND IS AN EXPERT WITNESS IN LEGAL CASES INVOLVING SURETY BONDS AND JIM IS WITH US HERE TODAY. AS FOR THE SCOPE OF SERVICES, THE PROVIDE PROVIDES PERSONALIZED ASSESSMENTS BASED ON PAST BOND APPLICATIONS IN ORDER TO ASSIGN SPECIFIC EDUCATIONAL COURSES, TAILORED COUNCILS HE WILL AGO AND REFERRED TO COMMUNITY PARTNERS. IT ALSO CALLS FOR THE MANAGEMENT OF THE $500,000 OF RESOLVING FUNDS, IDENTIFYING PROGRAM GOALS AND DEVELOPING POLICIES AND PROCEDURES MANUALS. REGARDING ELIGIBILITY, A BUSINESS MAY JOIN THE PROGRAM IF THEIR BUSINESS IS HEADQUARTERED IN THE SAN ANTONIO CITY LIMITS. IF THEY ARE CLASSIFIED AS A SMALL BUSINESS PER THE SMALL BUSINESS ADMINISTRATION GUIDELINES. AND IF THEY ARE PERFORMING WORK IN THE CONSTRUCTION INDUSTRY. UNDER THE PILOT PROGRAM'S CURRENT STRUCTURE, WE ARE AIMING TO MOVING PAST THE BACKGROUND INFORMATION, THE BY THE PROGRAM LAUNCHED ON OCTOBER 3, 202 ONCE A PARTICIPANT ENTERS THE PROGRAM WHAT YOU SEE THE PROCESS TO RECEIVE TRAINING. THIS INCLUDES A BOND PRE QUALIFICATION PACKET WHICH RECOGNIZE A ROAD MAP ON WHAT IS NEED TO DO SUBMIT A BOND. THIS ALLOWS PARTICIPANTS TO GET DOCUMENTS IN ORDER NOW SO THEY CAN SATISFY REQUIREMENTS WHEN NEEDED.
THIS DOCUMENT ALLOWS ALAMO SURETY BONDS TO REVIEW A VARIETY OF KEY ELEMENTS SUCH AS PERSONAL CREDIT SCORE, FINANCIAL STATEMENT, LARGEST JOB COMPLETED TO DATE, WORK IN PROGRESS AND PROVIDE AN OVERALL ASSESSMENT OF THE BUSINESS AND WHERE THEY CAN IMPROVE MOVING FORWARD. THEY RECOMMEND ADDITIONAL EDUCATION COURSES, COMMUNITY
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REFERRALS AND HELPS IDENTIFY SOLICITATIONS AND OBTAIN NEEDED BONDING TO BID ON THOSE PROJECTS. AS FOR THE PROGRAM'S EDUCATIONAL COURSES, THECLA THECLA -- THEY INCLUDE THESE ON THE SLIDE. AND BONDING SUB CONTRACTS JUST TO NAME A FEW. THE PARTICIPANTS DO NOT HAVE TO TAKE ALL 11 CLASSES YOU SEE ON THE SLIDE. AS STATED EARLIER, ALAMO SURETY BONDS WILL PROVIDE THAT ASSESSMENT AND ASSIGN BASED ON NEED. THIS NEXT SLIDE SHOWS THE PILOT PROGRAM ACCOMPLISHMENTS SINCE THE PROGRAM LAUNCHED.CURRENTLY WE HAVE 24 SMALL BUSINESSES WHO HAVE ENTERED THE PROGRAM.
AS YOU CAN SEE ON THE RIGHT-HAND SIDE OF THE SLIDE, THE MAJORITY OF THE ASPIRATIONAL GOALS REGARDING DEMOGRAPHICS OF BUSINESS OWNERS ARE BEING MET AND JIM PARTNERS WITH LOCAL BUSINESSES OF CHAMBER OF COMMERCE AND ADVOCACY ORGANIZATIONS. TO TODAY 41 CLASSES AND PROVIDED 91 ONE ON ONE CONSULTATION HOURS. THE BIGGEST SUCCESS SO FAR ARE THE NOTES ABOUT THE INCREASE IN BONDING CAPACITY FOR THE PARTICIPANTS WHO HAVE JOINED THE PROGRAM.
SO FAR PARTICIPANTS HAVE COLLECTIVELY MOVED FROM 1.4 MILLION TO 9.3 MILLION IN BONDING CAPACITY REPRESENTING A 7.9 MILLION OR 561% INCREASE IN BONDING CAPACITY FOR THE PARTICIPANTS. FURTHER, PARTICIPANTS HAVE SUBMITTED 5 BIDS FOR EITHER CITY OF SAN ANTONIO PROJECTS OR OTHER PUBLIC AGENCIES WHICH HAS RESULTED IN FIVE AWARDS FOR A COMBINED 3.2 MILLION.
THIS IS EXACTLY WHAT THE PROGRAM WAS INTENDED TO DO TO INCREASE THE NUMBER OF CONTRACTS THEY CAN PERFORM ON BY INCREASING BONDING CAMS IT CAPACITY AND WINNING PROJECTS. I WANTED TO SHARE TESTIMONIALS.
THE FIRST IS IRIS LUNA, ALAMO SURETY BONDS PROVIDE TRAINING AND ASSISTANCE IN THE SUBMISSION OF HER FIRST FINANCIAL STATEMENT SINCE A THE START OF COVID.
SHE GREW TO 1.5 MILLION ON A SINGLE BOND AND 2.35 IN AGGREGATED BONDS.
AWARD ADD PRIME CONTRACT FOR 1.6 MILLION WITH THE NASHVILLE FACILITY NEARING NEW ENGLAND -- NAVAL COMMAND IN CORPUS CHRISTI AND A PROJECT AT LACKLAND AIR FORCE BASE. THE SECOND TESTIMONIAL, THEY WERE ABLE TO -- THEY WERE NOT ABLE TO OBTAIN BONDING CAPACITY DUE TO FINANCIAL BURDENS INCLUDING A PRIME CONTRACTOR WHO DID NOT PAY IN A TIMELY MANNER. ALAMO SURETY BONDS PROVIDED TRAINING AND ASSISTED IN DEVELOPMENT OF AN ACTION PLAN REGARDING THEIR CREDIT REPORT. THEY WERE ABLE TO BE APPROVED FOR $500,000 ON A SINGLE BONDS AND ALAMO SURETY BONDS IS HELPING THEM IDENTIFY PROJECTS.
ALAMO SURETY BONDS WILL WORK TO IMPLEMENT ADDITIONAL SCOPES OF WORK WHICH INCLUDE HELPING PARTICIPANTS -- ONE WITH THE CITY OF SAN ANTONIO.
OTHER CHANGES INCLUDE HOSTING QUARTERLY WORK SOBS IN COORDINATION WITH CITY OF SAN ANTONIO TO SHARE BUSINESS RESOURCES AND BUILDING -- AND REFERRALS.
AND LAST, WE WILL CONTINUE TO EVALUATE THE PILOT PROGRAM AS WE GET CLOSER TO THE END OF THE FUNDING AGREEMENT TERM IN THE SUMMER OF 2025.
THIS CONCLUDES MY PRESENTATION. ECONOMIC DEVELOPMENT STAFF AS WELL AS MR. JIM SWINDLE ARE HERE TO ANSWER ANY QUESTIONS YOU HAVE.
THANK YOU ALL SO MUCH. >> PELÁEZ: THANK YOU VERY MUCH.
GOOD PRESENTATION. COUNCILMEMBER VIAGRAN, QUESTIONS, COMMENTS?
>> VIAGRAN: [INAUDIBLE]. THANK YOU, MICHAEL. I'M VERY PLEASED AND IT'S INCREDIBLE WORK. I FEEL LIKE WE'VE HAD THIS CONVERSATION FOR A LONG TIME OR SINCE AT LEAST I'VE BEEN ELECTED AND IT'S REALLY NICE TO SEE.
SO I WON'T SAY I TOLD YOU SO, BUT I THINK WE ALL KIND OF DID.
WELL DONE. I'M GLAD TO SEE THAT MOVE FORWARD AND LOOKING FORWARD TO HEARING THE STORIES AND HOPEFULLY THIS MESSAGE GOES OUT TO OTHER WOMEN-OWNED SMALL BUSINESSES THAT ARE LOOKING FOR THIS INFORMATION.
THANK YOU. >> WHYTE: REALLY JUST ONE QUESTION.
DURING THE PILOT PROGRAM, WHAT WERE THE CHALLENGES THAT BUSINESSES FACED WHEN
COORDINATING CONTRACTS WITH THE CITY? >> SURE.
I'M GOING TO HAVE JIM COME UP AND TALK ABOUT THAT. I THINK THE BIGGEST CHALLENGE IS THE AMOUNT OF FINANCIAL INFORMATION TO GET THAT ACTION PLAN IN PLACE.
>> YES. APPRECIATE THE OPPORTUNITY TODAY.
THERE'S MANY CHALLENGES, ACTUALLY. ONE OF THEM IS CONTRACTOR'S
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RELUCTANCE TO RECEIVE SENSITIVE INFORMATION, TAX RETURNS, FINANCIAL STATEMENTS. SUBJECT THEMSELVES TO CREDIT REPORTS.HOW DOES THAT AFFECT MY CREDIT SCORE. WE'RE CONTINUOUSLY NAVIGATING AROUND THAT AND WE'VE HAD MORE SUCCESS. AT THE VERY BEGINNING OF THE PROGRAM THAT WAS REALLY AN ISSUE, BUT IT HAS IMPROVED. AND PARTLY DUE TO THE CITY HAVING MORE PROJECTS OUT, I WOULD SAY, THAT ARE SMALL ENOUGH TO WHERE THE SMALLER PROGRAM PARTICIPANTS THAT WE'RE WORKING WITH CAN REALISTICALLY BID ON SO
THAT'S VERY HELPFUL AS WELL. >> WHYTE: I JUST THINK ACROSS THE BOARD MAKING IT
AS SIMPLE AS POSSIBLE. >> YES. >> WHYTE: FOR THESE CONTRACTORS TO DO BUSINESS WITH THE CITY IS SOMETHING WE NEED TO LOOK AT ENHANCING OR STREAMLINING. AND THEN, OF COURSE, I GOT TO SAY THAT WHEN THESE PROJECTS ARE OVER, REGARDLESS OF WHO IS DOING THEM, AND I KNOW IT'S NOT REALLY THE TOPIC OF TODAY'S DISCUSSION, BUT I REALLY WANT US TO EVALUATE THE PROJECTS, MAKE SURE THEY WERE DONE ON TIME, ON BUDGET, AND IF WE'VE GOT CONTRACTORS THAT AREN'T, YOU KNOW, MEETING THOSE REQUIREMENTS, WE NEED TO STOP USING THEM. BECAUSE, AGAIN, IT'S PROBABLY A WEEK DOESN'T GO BY WHEN MY OFFICE DOESN'T GET CALLS ABOUT SOME PROJECT WHERE THERE'S BEEN NO WORKERS ON IT FOR AWOKE OR THIS OR THAT -- FOR A WEEK AND THE PROJECT HAS DRUG ON FOREVER. THE OTHER WEEK PEOPLE COULDN'T GET OUT OF THEIR DRIVEWAYS BECAUSE THE STREETS HAVE BEEN TORN UP SO LONG.
BUSINESSES THAT HAVE HAD TO CLOSE BECAUSE CONSTRUCTION HAS GONE ON TOO LONG OUTSIDE THEIR HOMES. THAT'S NOT THE TOPIC HERE, BUT SINCE WE'RE TALKING ABOUT CONTRACTING AND HOW THIS IS WORKING AND STREAMLINING THE PROCESS, I
HOPE WE LOOK AT ALL THAT. THANKS, CHAIR. >> PELÁEZ: THANK YOU.
COUNCILMEMBER ROCHA GARCIA. >> GARCIA: THANK YOU, CHAIR, AND I APPRECIATE THE DISCUSSION THAT WE ARE HAVING REGARDING THE ACCESS TO CAPITAL AS WELL.
AND THANK YOU TO YOU AND TO CAL FOR OUTLINING WHAT WE CAN DO IN TERMS OF BONDING REQUIREMENTS. I KNOW THAT WAS A CONVERSATION THAT WE WANTED TO HAVE. AFTER A YEAR OF THOSE PROFESSIONAL SERVICE AGREEMENTS WITH THE ALAMO SURETY BONDS, I WANTED TO KNOW IF WE'VE DIRECT FEEDBACK FROM THE 24 PARTICIPATING BUSINESS OWNERS.
DO WE HAVE THAT? >> WHILE YOU STEPPED OUT, I SHARED TWO TESTIMONIALS FROM TWO OF THE PARTICIPANTS ABLE TO GROW CAPACITY TO 500,000 TO 1.5 MILLION ON SINGLE BONDS AND 2.5 MILLION IN OTHER WINNING CONTRACTS ACROSS THE STATE OF TEXAS.
WE HAD ANOTHER ONE WHO LOST THEIR ABILITY TO OBTAIN BONDING DUE TO A PRIME NOT PAYING THEM IN A TIMELY MANNER AND JIM WAS ABLE TO GET THEIR FINANCIAL INFORMATION IN ORDER AND NOW THEY CAN OBTAIN A $500,000 BOND SO HE IS HELPING FIND OPPORTUNITIES TO BID ON. WE RECEIVED NUMEROUS TESTIMONIALS INDICATING IT'S HELPED THEM IN SOME WAY, SHAPE OR FORM. THE KEY STAT, THEY'VE GONE
FROM 1.4 MILLION IN BONDING CAPACITY TO 9.4 MILLION. >> GARCIA: I KNOW THE 41 CLASSES, 91 HOURS OF THE INDIVIDUAL CONSULTATION HELPED REACH THE NUMBERS THAT YOU MENTIONED. BUT CAN WE GET A BREAKDOWN BY BUSINESS? AND I'M WONDERING IF WE HAVE THE BUSINESSES THAT WERE AWARDED THE -- OR IT WAS 25 BIDS SUBMITTED, SO IT WAS FIVE WINNING BIDS. CAN WE GET A BID FOR EACH
AWARD OR A BREAKDOWN OF THE BIDS? >> YES.
>> GARCIA: I KNOW THAT SMALL MINORITY-OWNED AND WOMEN-OWNED BUSINESSES HAVE ADDITIONAL BARRIERS AND I APPRECIATE YOU FOR INCLUDING THAT ASPIRATIONAL GOAL ON SLIDE 7. WOULD IT BE POSSIBLE TO SEE THE BREAKDOWN OF INDUSTRIES
THAT REPRESENT THE 24 PARTICIPATING FIRMS AS WELL? >> SURE.
NOW, ALL OF THEM ARE GOING TO BE IN THE CONSTRUCTION INDUSTRY BECAUSE REALLY
BONDING APPLIES IN THAT ONE SPECIFICALLY. >> GARCIA: AND THEN CAN WE
GET THE COUNCIL DISTRICT ZIP CODE AND CENSUS TRACT? >> ABSOLUTELY.
>> GARCIA: IS THERE ADDITIONAL OPPORTUNITY TO REQUEST ADDITIONAL FUNDING FOR THIS PROJECT AT THE MIDYEAR ADJUSTMENT, THE SIX PLUS SIX BUDGET ADJUSTMENT?
>> I THINK WE WERE ABLE TO SUPPORT THROUGH THE ECONOMIC DEVELOPMENT CORPORATION.
PART OF THE RATIONALE FOR EXTENDING FOR ANOTHER YEAR IS BECAUSE OF THE AMOUNT OF
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UPCOMING CONTRACTS THAT WE'RE ANTICIPATING THAT ARE THE IDEAL SIZE FOR THESE TYPES OF BUSINESSES. WITH THE BOND PROGRAM BEING AT THE STAGE IT'S IN, A LOT OF THOSE PARKS PROJECTS, SMALLER PROJECTS ARE GOING TO BE BID OUT THE NEXT YEAR AND THAT'S THE TYPE OF OPPORTUNITY WE WANT TO CREATE, BUT WE DID HAVEFUNDING THROUGH THE ECONOMIC DEVELOPMENT CORPORATION. >> GARCIA: IS THERE AN OPPORTUNITY TO HAVE STUDENTS ENGAGE LIKE IN THIS AND EVEN IN THE EDIF PROJECTS, JUST TO HAVE THEM DO SOME SORT OF REVIEW OF THE PROGRAMS? WE ALREADY HAVE SOMETHING WITH UTSA, BUT I THINK IT MIGHT BE A GOOD OPPORTUNITY TO HAVE A DIFFERENT SET OF EYES LOOK AT ALL OF THIS AS WELL S YOU KNOW, FROM OUR REGS.
I KNOW WE HAVE REGS, BUT IT MIGHT BE A GOOD LEARNING OPPORTUNITY AS WELL.
ARE THERE ANY OTHER GRANT OPPORTUNITIES THAT WE CAN PURSUE OR THAT YOU ALL ARE
LOOKING AT TO CONTINUE THIS TYPE OF OPPORTUNITY? >> AT THIS TIME, JUST WHAT
ALEX SAID, CONTINUE FUNDING THROUGH EDS. >> GARCIA: THANK YOU.
THOSE ARE ALL MY QUESTIONS. THANK YOU, CHAIR. >> CASTILLO: COUNCILMEMBER
CASTILLO, QUESTIONS, COMMENTS? >> CASTILLO: YES, THANK YOU, MICHAEL, FOR THE PRESENTATION AND JUST REVIEWING, WHEN WE TALK ABOUT THE MAJOR AND MINOR REHAB IS THE OVERALL CAPACITY OF THE INDUSTRY FOR CONSTRUCTION. I THINK THE PILOT LIKE THIS GEARED TOWARDS HOME AND MINOR REHAB WOULD SERVE VALUE TO THE CITY IN MEETING HOUSING GOALS.
I WAS PLEASED TO SEE THAT PART OF THE PILOT INCLUDES HELPING FOLKS APPLY FOR THE CITY AND OTHER CONTRACTS, AND THIS IS SOMETHING I'VE HEARD FROM DIFFERENT D5 SMALL BUSINESS CONTRACTING FOLKS IS JUST THE GUIDANCE ON HOW TO GO AFTER CITY CONTRACTS. THEN MY QUESTION REGARDING THE EDUCATIONAL COMPONENT, ARE THESE BY BILINGUAL CLASSES OR IF A PARTICIPANT NEEDS TRANSLATION SERVICES?
>> NOT AT THIS TIME, NO. NO. BUT SOMETHING I'M OPEN TO.
OPEN TO REVIEWING AND BOLTING ON DOWN THE ROAD. >> CASTILLO: BECAUSE WITH THIS PILOT IT SEEMS LIKE IT'S PERFORMING WELL AND AS IT CONTINUES AND WE CONNECT MORE FOLKS TO IT, IF THERE'S NEED FOR [INAUDIBLE] YOU ALL WILL CONNECT THEM TO THAT FOR TRANSLATION ASSISTANCE. I DON'T HAVE ANY COMMENTS, JUST THE SUGGESTION I THINK THERE WOULD BE VALUE IN A PILOT GEARED TOWARDS -- AND IN COORDINATION WITH NHSD WOULD HAVE GREAT IMPACT ON THE CITY. THANK YOU.
THANKS, MICHAEL. THANKS, CHAIR. >> PELÁEZ: THANK YOU VERY MUCH. MICHAEL, I GOT NO QUESTIONS OTHER THAN JUST A HARDY DEMOCRATS. THIS PROGRAM CONTINUES TO SUCCESS AND THANKS TO YOUR HARD WORK AND EVERYBODY BELIEVING IN THE PROGRAM. WE REALLY ARE MATERIALLY CHANGING PEOPLE'S LIVES BY WAY OF BOND ASSISTANCE, WHO KNEW, RIGHT? THANK YOU. LADIES AND GENTLEMEN, THAT BRINGS US TO THE END OF ANOTHER MEETING. THANK YOU TO EVERYBODY WHO PARTICIPATED.
THANKS FOR OUR FRIENDS FROM OUTSIDE THE WALLS OF CITY HALL FOR JOINING US.
YOU ALL HAVE A GREAT DAY.
* This transcript was compiled from uncorrected Closed Captioning.