[00:00:51]
          >> MAYOR JONES: GOOD AFTERNOON. THE TIME IS NOW 2:02 P.M. 
          ON WEDNESDAY, OCTOBER 1ST, 2025. THE SAN ANTONIO B SESSION IS CALLED TO ORDER. MADAM CLERK, PLEASE CALL THE ROLL. 
          >> CLERK: THANKS, MADAM CLERK. AS WE SHARED THE -- WE ARE NOW GOING TO HAVE RECURRING MEETINGS FOR THE ENTIRE BODY ON OUR MUNICIPALITIES -- MUNICIPAL UTILITIES RATHER. THIS IS ONE THAT EACH OF YOU, ONE, HAVE EXPRESSED TO ME YOUR DESIRE TO LEARN MORE ABOUT AND IT'S SOMETHING THAT YOU HAVE IDENTIFIED THAT YOU'RE CONTINUALLY HAVING TO ANSWER QUESTIONS FOR. AS WE THINK ABOUT THE STRATEGIC ADVANTAGE THAT THESE. MUNICIPALITIES ARE, WE SHOULD THINK ABOUT HOW WE CAN STRENGTHEN, HOW WE ACCOMPLISH THE POWER GENERATION PLAN AT CPS, BUT ALSO HOW WE, IN FACT, ARE GOING TO FINANCE SOME SIGNIFICANT DELAYED CAPITAL PROJECTS AT SAWS. SO I APPRECIATE THE SAWS LEADERSHIP TEAM TO INCLUDE CHAIR OF THE BOARD BEING HERE AS WELL. WE WILL ALSO HEAR ABOUT THE RIVERWALK STRATEGIC PLAN, WHICH I UNDERSTAND WE HAVE NOT HEARD YET AT THIS COUNCIL, SO IT WILL BE GOOD TO GET FRESH FEEDBACK, FRESH EYES ON THAT. 
          ERIK, OVER TO YOU. >> WALSH: I WAS JUST GOING TO ADD THAT WE WILL HAVE THESE UTILITY BRIEFINGS AT THE BEGINNING OF EVERY MONTH, AND MR. PUENTE WAS GOOD ENOUGH TO VOLUNTEER FOR THE FIRST ONE, SO I'LL 
          TURN IT OVER TO HIM. >> THANK YOU, CITY COUNCIL. 
          WELCOME BACK, COUNCILMAN. IT'S A PLEASURE TO BE HERE IN FRONT OF YOU. IT'S OUR OPPORTUNITY TO TELL YOU AND YOUR CON CONSTITUENTS WHAT GOES ON AT SAWS. THAT'S OBVIOUSLY A VERY IMPORTANT FUNCTION THAT WE HAVE. THEIR UTILITY, YOUR UTILITY, AS THE MAYOR SAID, A LOT OF QUESTIONS ARE ASKED ABOUT WHAT WE'RE DOING, HOW WE'RE DOING IT, SO HOPEFULLY THIS IS OTHER, EVERY OTHER MONTH TO TELL THAT INFORMATION TO THE COUNCIL, AND THAT WAY IT TRICKLES DOWN TO YOUR CONSTITUENTS. DOUG HAS BEEN WITH SAWS 20 YEARS, AND HE JUST GOT BACK FROM NEW YORK ON A BOND ISSUANCE TRIP, WHERE WE REFINANCED SOME BONDS, SOLD SOME BONDS, SO THAT IS A CONTINUATION OF WHAT WE'RE TRYING TO DO, AS FAR AS HOW WE SPENT OUR CAPITAL DOLLARS AND HOW WE FUND OUR INFRASTRUCTURE. BEHIND ME IS ANDREA BEAMER, SHE'S OUR CHIEF OPERATING OFFICER. SHE'S THE FIRST HISPANIC WOMAN TO SERVE AS COO IN A UTILITY AS LARGE AS OURS, AND SHE'S HOME GROWN, AND THE THREE OF US STAND READY TO ANSWER ANY QUESTIONS YOU MAY 
          HAVE. THANK YOU, MAYOR. >> MAYOR JONES: THANK YOU.  OPPORTUNITY TO SPEAK TO YOU TODAY, RICHARD DONA COULD NOT BE HERE, SO THAT'S WHY I'M HERE PITCH HITTING FOR HIM. AS WAS SAID, I'M ANDREA BEAMER, I'M THE CHIEF OPERATING OFFICER. I'M GOING TO DIVE RIGHT IN. SAWS IS COMMITTED TO SECURING, PROTECTING AND MANAGING OUR MOST PRECIOUS RESOURCE. OVER THE LAST 25 YEARS, SAWS HAS SUCCESSFULLY SECURED NEW SUPPLIES FOR OUR GROWING CITIES FROM SEVEN DIFFERENT SOURCES. TO EFFECTIVELY MANAGE THIS DIVERSE WATER PORTFOLIO, SAWS HAS ALSO PIONEERED BEST IN CLASS WATER CONSERVATION PROGRAMS AND PRACTICES TO HELP HOMES AND BUSINESSES MAKE EVERY DROP COUNT. 
          ROUNDING OUT THE UTILITIES WATER STEWARDSHIP PRIORITIES IS 
          [00:05:01]
A RENEWED FOCUS ON REDUCING NONREVENUE WATER, SOMETIMES REFERRED TO AS WATER LOSS. TO ENSURE SAWS CONTINUE TION -- AUDIO] -- TO COME. SAWS HAS AN ONGOING COMMITMENT TO TACKLING WATER LOSS, A CRITICAL ISSUE THAT SAW AN UPTICK IN 2023, EX EXASPERATED BY DROUGHT AND STAFFING CHALLENGE. TO ADDRESS THIS, SAWS HAS RENEWED FOCUS BY ESTABLISHING THE OFFICE OF NONREVENUE WATER. 
          RICHARD DONA, WHO COULD NOT BE HO BE HERE IS THE DIRECTOR OF THIS PROGRAM. THE EFFORT IS TO WORK ACROSS THE ORGANIZATION. 
          ADDITIONAL RESOURCES, INCLUDING NEW STAFF AND EQUIPMENT HAVE BEEN ALL ALLOCATED TO STRENGTHEN THESE INITIATIVES. SO I WANTED TO TALK A LITTLE BIT ABOUT OUR SYSTEM, WHICH REALLY HIGHLIGHTS THE COMPLEXITY OF THIS ISSUE FOR US. WE ARE ONE OF THE LARGEST SYSTEMS IN THE COUNTRY WITH 934 SQUARE MILES AND 7900 MILES OF WATER MAIN. 
          WE HAVE 13 SUPPLIES FROM SEVEN DIFFERENT WATER SOURCES, AND WE HAVE A VARIED ELEVATION RANGE, ROUGHLY 1500 FEET ELEVATION RANGE IN OUR CITY. IN TERMS OF THE SIZE OF OUR SYSTEM, WE HAVE MORE MILES OF WATER MAIN THAN LOS ANGELES, MORE MILES OF WATER MAIN THAN HOUSTON, MAKING US THE BIGGEST IN THE COUNTRY. WE'RE NOT ALONE IN FACING THIS ISSUE OF NONREVENUE WATER. CITIES ACROSS THE COUNTRY, AS WELL AS THE STATE ARE WORKING TO TACKLE THIS ISSUE. 
          AND THEY ALL HAVE DIFFERENT CHALLENGES AND DIFFERENT APPROACHES TO ADDRESS THIS ISSUE. FOR US, I WANTED TO HIGHLIGHT FIRST SOME OF THE CHALLENGES. FOR US, WEATHER, HOT, DRIE WEATHER, AS WELL AS CLAY SOIL CONDITIONS CAN HAVE A LARGE IMPACT ON OUR ANNUAL WATER LOSS. 
          AS WE EXPERIENCE HOT, DRY WEATHER, OUR CLAY SOILS CONTRACT CAUSING AN INCREASE IN MAIN BREAKS. THE MAP ON THIS SLIDE ILLUSTRATES THIS. 
          THE TAN ON THIS SLIDE SHOWS THE EXPANSIVE SOILS THAT RUN THROUGH THE CENTER OF OUR CITY, AND THE HEAT MAP SHOWS THE CONCENTRATION OF WATER MAIN BREAKS AND LEAKS THAT WE HAVE BEEN WORKING TO ADDRESS. 
          I ALREADY TALKED ABOUT OUR SYSTEM SIZE. I'M GOING TO TALK A LITTLE BIT MORE ABOUT AGE, BUT WE DON'T HAVE A NEW SYSTEM. 
          SO AGING INFRASTRUCTURE IS AN ISSUE. IN ADDITION, GROWTH, WE ARE A FAST-GROWING CITY, AS WE ALL KNOW DRIVING AROUND. 
          WE ADD ABOUT 100 MILES OF WATER MAIN PER YEAR TO OUR SYSTEM. 
          AND FINALLY, PRESSURE. I TALKED ABOUT THAT ELEVATION DIFFERENCE IN OUR CITY. IN ORDER TO PROVIDE CONSISTENT SERVICE TO OUR CUSTOMERS, WE BASICALLY HAVE BROKEN DOWN OUR SYSTEM INTO WHAT WE CALL 59 PRESSURE ZONES. THESE ARE LITTLE MINI SYSTEMS ACROSS OUR SYSTEM IN ORDER TO PROVIDE SOME SEMBLANCE OF PRESSURE THAT MEETS TCEQ STANDARDS. HOWEVER, IN THE HIGHER PRESSURE AREAS, WE ARE MORE PRONE TO LEAKAGE. SO WE'VE IDENTIFIED FOUR KEY AREAS OF FOCUS FOR THE PROGRAM. I WANT TO POINT OUT THAT EACH OF THEM ENCOMPASS MEASUREMENTS, PROGRESS AND PERFORMANCE TRACKING, AS WELL AS UPDATED BUSINESS PRACTICES. AS PART OF REFINING OUR ANNUAL WATER LOSS AUDIT, ONE OF THE INITIATIVES THAT WE'VE BEEN WORKING ON IS CAPTURING OUR AUTHORIZED WATER USE VOLUMES. THESE ARE NECESSARY AND BENEFICIAL USES OF WATER FOR ACTIVITIES SUCH AS HYDRANT TESTING, FIREFIGHTING, WATERLINE FLUSHING, PRODUCTION WELL LUBRICATION AND WATERLINE CLEANING. SO IN SHORT, NONE OF THIS IS LOST WATER, BUT WE NEED TO BE ABLE TO CALCULATE AND CAPTURE THOSE AMOUNTS BETTER. 
          IF THEY'RE NOT KNOWN, THEY CAN'T BE REPORTED, AND THEY SHOW UP IN THAT WATER LOSS COLUMN. SO THIS YEAR WE'VE IDENTIFIED THE GROUPS AND ACTIVITIES THAT USE AUTHORIZED WATER, AND WE'RE WORKING TO FINE-TUNE WHAT THOSE VOLUMES ARE, REPORT ON THEM MONTHLY, AND SIMPLIFY THAT REPORTING TO STORE IT IN A DATABASE WHERE WE CAN ACCESS IT EASIER AND QUICKER. THE NEXT CRITICAL AREA IN OUR SYSTEM IS INPUT VALUE, AND I'M SORRY, THERE'S A -- THIS IS THE AMOUNT OF WATER THAT WE PRODUCE IN OUR WELLS -- IT IS IMPORTANT WE GET THIS ACCURATE, SINCE IT IS THE TOP VALUE OF OUR WATER LOSS AUDIT. NEXT IS APPARENT LOSSES. THIS IS COMPRISED OF CUSTOMER METER ACCURACY, AS WELL AS WATER THEFT. AND FINALLY, THE LARGEST COMPONENT, IS OUR O REAL LOSS CATEGORY. THIS IS COMPRISED OF ALL THE WATER THAT WE LOSE THROUGH LEAKS AND BREAKS IN OUR DISTRIBUTION SYSTEM. SO WHAT ARE WE DOING ABOUT IT? FIRST, WE'RE GOING TO START WITH OUR PRODUCTION WELL METERS. 
          [00:10:04]
THIS IS ONE OF THE IMPORTANT MEASUREMENTS THAT WE HAVE IN OUR SYSTEM. SAWS IS CURRENTLY WORKING ON A PROGRAM TO REPLACE OUR LEGACY PRODUCTION WELL METER FLOWS WITH ADVANCES IN TECHNOLOGY, THE NEW METERS WILL MEASURE PRODUCTION FLOWS MORE ACCURATELY. 
          EARLIER THIS YEAR, OUR BOARD GAVE US APPROVAL TO PROCURE 106 FLOWMETERS. 
          THESE METERS ARE BEING INSTALLED IN-HOUSE AT OUR PUMP STATIONS, AT OUR WELLS, AND WE EXPECT TO HAVE THIS COMPLETION BY THE END OF 2026. 
          WHAT WE'RE SEEING SO FAR IS OUR WELL METERS ARE OVERREGISTERING, WHICH MEANS THEY'RE SHOWING THAT WE'RE PULLING MORE THAN WE ACTUALLY ARE. 
          SO WE NEED TO GET A BETTER HANDLE ON THIS NUMBER, AND THAT IS EXACTLY WHAT THIS INITIATIVE WILL DO. YOU'VE HEARD A LOT ABOUT OUR CONNECTH2O PROGRAM, THIS IS ALSO KEY TO ADDRESSING WATER LOSS. 
          WE NEED TO KNOW WHAT OUR CUSTOMERS ARE USING AND WE NEED TO HAVE ACCURATE NUMBERS. WE'RE REPLACING 65,000 MECHANICAL METERS WITH ELECTRONIC METERS. MECHANICAL METERS HAVE MOVING PARTS, AND OVER TIME BEGIN TO UNDERREGISTER THE AMOUNT OF FLOW GOING THROUGH THEM. BY REPLACING THESE METERS WITH ELECTRONIC METERS, WE SHOULD SEE IMPROVED METER ACCURACY. TO DATE, WE'RE OF 91% COMPLETE WITH OUR AMI METER INSTALLATIONS AND WE'LL HAVE ALL SMALL CUSTOMER METERS INSTALLED BY THE END OF 2025. I TALKED A LITTLE BIT ABOUT THE AGE OF OUR INFRASTRUCTURE, AND I WANTED TO JUST GO INTO THAT IN A LITTLE MORE DETAIL. AS WE LOOK AT THIS FIRST PIE CHART, WE SEE 23% OF OUR WATER MAINS ARE 50 YEARS OLD OR GREATER. 
          62% ARE SOMEWHERE BETWEEN 10 AND 50 YEARS OLD. 15% ARE LESS THAN 10 YEARS OLD. AND WHEN WE LOOK AT WHERE OUR LEAKS ARE, THE MAJORITY OF THEM ARE EITHER ON THE MAINS OR ON OUR SERVICE LINES. 
          SERVICE LINES ARE THE PIPES THAT CONNECT THE MAIN AND THE STREET, OR THE ALLEY, TO THE INDIVIDUAL CUSTOMER METER. 
          SO WE KNOW WHERE THE LEAKS ARE, IT'S BEING ABLE TO GET TO THEM, TARGET THEM AND FIX THEM. SO WHAT ARE WE DOING ABOUT THAT? FIRST AND FOREMOST, WE'RE WORKING TO INCREASE OUR WORK CREWS THAT GET TO AND FIX THOSE LEAKS. WE'RE WORKING FOR A FASTER RESPONSE TIME. WE'RE ENHANCING OUR LEAK DETECTION STAFFING, WHICH MEANS MORE RESOURCES ARE DEDICATED TO IDENTIFYING LEAKS EARLY AND PREVENTING THESE FROM BECOMING LARGER ISSUES. ULTIMATELY, WE'RE ALSO REPLACING WATER MAINS. FIXING THAT AGING INFRASTRUCTURE. 
          TOGETHER, THESE INTERVENTIONS FORM A COMPREHENSIVE APPROACH TO MANAGING AND REDUCING WATER LOSS. SO I TALKED ABOUT STAFFING UP. I WANTED TO SHOW THE PROGRESS THAT WE'VE MADE. AND FIRST, I HAVE TO SAY THINGS WERE UGLY. 
          WE LOOK AT '22 AND '23, AND THIS IS FOR A NONEMERGENCY REPAIR. 
          I WANT TO FOCUS ON THAT, BECAUSE IF THERE'S AN EMERGENCY REPAIR, WE ADDRESS IT IMMEDIATELY. AND THIS RESPONSE TIME MEASURES WHEN A LEAK IS CALLED IN TO WHEN A CREW RESPONDS TO THE WORK ORDER. 
          IN OUR PEAK IN '22 AND '23, WE WERE SEEING RESPONSE TIMES THAT WENT UP TO 14 DAYS. WE KNEW WE HAD TO DO SOMETHING. 
          SO WE INCREASED OUR CREWS, WE INCREASED THE NUMBER OF PEOPLE DEDICATED TO ADDRESS THIS. WE CHANGED WORK SCHEDULES. NOW WE HAVE DEDICATED CREWS ON THE WEEKENDS WHO ARE THERE TO ADDRESS THOSE MAINS QUICKER, SO WE DON'T BUILD UP OUR BACKLOG ON THE WEEKEND AND HAVE TO PLAY CATCHUP ALL WEEK. 
          ALL OF THOSE, WE CAN SEE HAVE MADE A DIFFERENCE. 2025, WE ARE DOWN TO TWO DAYS, AND WE'RE NOT DONE. WE'RE GOING TO CONTINUE TO WORK TO BRING THIS NUMBER DOWN. A KEY TO ACHIEVING AND SUSTAINING OUR LONG-TERM WATER LOSS IS DEPENDENT ON IDENTIFYING THOSE HIDDEN LEAKS, LEAKS THAT DON'T SURFACE, BUT THEY'RE THERE IN OUR DISTRIBUTION SYSTEM. THIS PLAYS A CRITICAL ROLE IN THIS SPACE. 
          SAWS LEAK DETECTION TEAM HAS INCREASED STAFFING FROM SIX TO 16 OVER THE LAST TWO YEARS. WE'RE ALSO LOOKING AT NEW TECHNOLOGIES AND PROCESSES THAT ARE FINE-TUNED. WE'RE GOING TO CONTINUE TO GROW IN OUR SOPHISTICATION OF THIS TEAM, AS WE WORK TO CONTRIBUTE TO OUR WATER LOSS INITIATIVE. AS I MENTIONED BEFORE, WATER MAIN REPLACEMENT IS AN EXPENSIVE INITIATIVE, BUT IT IS SOMETHING THAT'S ALSO VITAL TO OUR SUCCESS.  WE'RE LEVERAGING AN AI FAILURE PREDICTION MODEL TO PROACTIVELY IDENTIFY THE MOST VULNERABLE WATER MAINS THAT REQUIRE REPLACEMENT. THIS TARGETED APPROACH ENSURES WE PRIORITIZE THE WORST PERFORMING MAINS FIRST. 
          CONSTRUCTION WORK IS BEING EXECUTED BOTH BY OUR IN-HOUSE CREWS AS WELL AS WE'RE HIRING CONTRACTORS IN ORDER TO INCREASE OUR TIMELINES AND GET MORE MAINS COMPLETE. WE ARE VERY SERIOUS ABOUT 
          [00:15:04]
THIS INITIATIVE. OVER THE NEXT FIVE YEARS WE INTEND TO SPEND MORE THAN $500 MILLION THAT . DOUG WILL GO INTO THAT IN HIS PRESENTATION. BUT $500 MILLION ON WATER MAIN REPLACEMENT. 
          TO GET TO OUR LONG-TERM TARGETS, WE'RE GOING TO LEAN INTO RESOURCE MODELING, TECHNOLOGY AND AI TO IDENTIFY AND ADDRESS HIDDEN LEAKS, OR LEAKS THAT DON'T SURFACE WITHIN OUR DISTRIBUTION SYSTEM. 
          WE'RE CURRENTLY WORKING WITH OUR WATER LOSS CONTROL CONSULTANT ON DEVELOPING A LEAK MANAGEMENT MODEL. THIS IS A COLLABORATIVE EFFORT THAT WILL ASSIST SAWS IN DETERMINING HOW MUCH INVESTMENT IN LEAK DETECTION AND OTHER STRATEGIES IS COST JUSTIFIED. 
          AND THROUGH THAT, REFINE WHAT A FEASIBLE LEAKAGE RATE IS FOR SAWS. 
          JUST LIKE POTHOLES FOR THE CITY, WE WILL NEVER GET TO ZERO, BUT WE WANT TO BE BEST IN CLASS. WE WANT TO BE BEST IN CLASS IN TEXAS, AS WELL AS THE COUNTRY. THIS WILL BE A ROADMAP TO DETERMINE ADDITIONAL STAFFING REQUIREMENTS AND POTENTIAL INTERVENTION STRATEGIES. 
          WE'RE ALSO PLANNING AN INNOVATION DAY TO INVITE VENDORS TO DISPLAY THEIR TOOLS AND TECHNOLOGY IN REDUCING WATER LOSS, AND FINALLY, WE WILL PILOT VIABLE LEAK DETECTION TECHNOLOGY WHICH USE ADVANCED SENSORS AND DATA ANALYTICS TO DETECT LEAKS THAT ARE NOT VISIBLE THROUGH TRADITIONAL METHODS. SO HOW ARE WE DOING? HOW ARE WE DOING SINCE WE PUT A LOT OF THESE THINGS IN PLACE SINCE LAST YEAR? EVERY MONTH, WE PROVIDE OUR BOARD WITH THIS UPDATE. 
          THIS 12-MONTH ROLLING AVERAGE IS OUR NONREVENUE WATER INDEX FOR EVALUATING HOW WE'RE PERFORMING MONTHLY. THIS ALLOWS US TO TREND OUR PERFORMANCE OVER TIME, AND YOU CAN SEE, WE ARE TRENDING DOWNWARDS. 
          THE INTERVENTIONS WE HAVE PUT IN PLACE ARE WORKING. 
          WE SEE A SLIGHT UP TRENDS THESE LAST TWO MONTHS, AND WE'RE LOOKING AT THE TRENDS. WE KNOW OVER THE LAST TWO MONTHS, WITH EVE HAD A SIGNIFICANT NUMBER OF MAIN BREAKS, AGAIN, LARGELY DUE TO HOT, DRY WEATHER. IN TERMS OF OUR LONG-TERM GOAL, WE'RE SO SERIOUS ABOUT THIS GOAL, WE INCLUDED THIS IN OUR WATER MANAGEMENT PLAN. 
          AND WE DISCLOSED THIS TO OUR BOARD, OUR BOARD APPROVED THIS AS WELL AS TO OUR PUBLIC. THIS SLIDE HIGHLIGHTS SAWS TARGETS SETTING GALLONS OF TOTAL WATER PER SERVICE CONNECTION PER DAY. 
          THIS IS OUR KEY METRIC TO MEASURE OUR PROGRAM'S SUCCESS. 
          OUR SHORT-TERM TARGET IS 61-GALLONS PER CONNECTION PER DAY BY 2028. 
          OUR ASPIRATIONAL TARGET IS TO DRIVE DOWN WATER LOSS TO 43-GALLONS PER CONNECTION BY 2035. THIS IS A 50% REDUCTION FROM OUR PEAK IN 2023. 
          BUT THIS IS NOT GOING TO BE EASY TO ACHIEVE. THIS IS GOING TO TAKE MANPOWER, THIS IS GOING TO TAKE INNOVATION, THIS IS GOING TO TAKE SIGNIFICANT MONEY IN ORDER TO GET US TO THIS GOAL. 
          BUT WE'RE COMMITTED TO GET THERE, WE'RE COMMITTED TO OUR COMMUNITY, TO OUR BOARD, TO OUR COUNCIL, TO MEET THIS GOAL. 
          THIS CONCLUDES OUR -- MY PRESENTATION. I'D BE HAPPY TO ADDRESS 
          ANY QUESTIONS YOU MAY HAVE. >> GOOD AFTERNOON. 
          AS ROBERT MENTIONED, MY NAME'S DOUG EVANSON, I'M CHIEF FINANCIAL OFFICER HERE AT SAWS AND HAVE BEEN FOR THE LAST 20 YEARS. 
          I WANT TO SPEAK TO YOU TODAY ABOUT THE 2026 BUDGET PROCESS, WHICH IS A LITTLE BIT UNUSUAL FOR SAWS, AS WELL AS OUR 2026 AND 2030 CAPITAL PLANS. 
          ANDREA TOUCHED A LITTLE BIT ON THOSE CAPITAL PLANS BUT I WANT TO GO INTO A LITTLE BIT MORE DETAIL. SO BEFORE I BEGIN, I DO WANT TO JUST HIGHLIGHT A COUPLE OF OUR ACCOMPLISHMENTS, BOTH FROM AN OPERATIONAL AND FINANCIAL PERSPECTIVE WITH MY FOCUS, OBVIOUSLY, IS MORE FINANCIAL, BUT YOU CAN SEE SOME OF OUR OTHER ACCOMPLISHMENTS THERE. LARGEST GROUNDWATER BASED ASR AND BEST IN NATION CONSERVATION PROGRAM, THOSE ARE A COUPLE THAT WE PRIDE OURSELVES ON AND HAVE BEEN DOING FOR A LONG TIME. YOU CAN SEE SOME OF THE OTHERS THERE. THE LAST TWO I'D LIKE TO HIGHLIGHT ARE THE CONSISTENT MAINTENANCE, A VERY STRONG CREDIT METRICS. 
          WE'LL TALK ABOUT THE IMPORTANCE A LITTLE BIT LATER IN THE BRIEFING AS WELL AS WE HAVE THE HIGHEST CREDIT RATING IN SAWS HISTORY. 
          FROM TWO OF THE THREE RATING AGENCIES, WE HAVE BASICALLY A AA PLUS BOND RATING, WHICH IS THE SECOND HIGHEST RATING YOU CAN GET, WHICH HELPS KEEP OUR INTEREST COSTS AS LOW AS POSSIBLE. SO AS I MENTIONED, OBVIOUSLY YOU ALL JUST RECENTLY COMPLETED YOUR BUDGET PROCESS FOR THE NEXT FISCAL YEAR. WE HAVE A FISCAL YEAR THAT BEGINS ON JANUARY 1, 
          [00:20:03]
BASICALLY THE CALENDAR YEAR. SO WE'RE IN THE MIDST OF OUR BUDGET PROCESS, AND I WANT TO SPEND JUST A FEW MINUTES DISCUSSING THAT PROCESS, WHICH, AS I MENTIONED EARLIER, IS SOMEWHAT DIFFERENT FOR 2026 THAN WHAT WE'VE SEEN OVER THE LAST SEVERAL YEARS. 
          FIRST, I'LL START WITH ORDINANCE, THIS IS THE ORDINANCE THAT ESTABLISHED SAWS BACK IN 1992, ORDINANCE NUMBER 75686, AND IT BASICALLY SAYS THE BOARD IS TO PREPARE, OBVIOUSLY, AN ANNUAL BUDGET TO CONTROL AND ADMINISTER THE EXPENSES OF THE SYSTEM. THAT BUDGET IS SUPPOSED TO BE DONE IN A CERTAIN WAY, IT'S GOT SOMETHING CALLED FLOW OF FUNDS, BUT IT ALSO REFLECTS AN ESTIMATE OF THE GROSS REVENUES AND AN ESTIMATE OF THE DISPOSITION OF THOSE REVENUES CONSISTENT WITH THE REQUIREMENTS AND FINALLY THE ANNUAL BUDGET IS TO BE APPROVED BY THE BOARD AT LEAST 60 DAYS PRIOR TO THE BEGINNING OF THE FISCAL YEAR AND AFTER THE APPROVAL THE BUDGET WILL BE SUBMITTED TO CITY COUNCIL FOR REVIEW IN CONSULTATION. 
          IF NECESSARY, ANY RATE ADJUSTMENT REQUESTS MUST BE FORWARDED TO CITY COUNCIL FOR THEIR DELIBERATION AND CONSIDERATION. 
          SO BEFORE WE GET INTO THE 2026 BUDGET PROCESS ITSELF, I WOULD JUST LIKE TO REMIND EACH OF YOU OF SAWS FOUR PRIMARY CORE BUSINESSES THAT PROVIDE THE ESSENTIAL SERVICES, THAT PROVIDE LIFE-ESSENTIAL SERVICES TO THIS COMMUNITY. FIRST, SAWS IS RESPONSIBLE FOR THE DEVELOPMENT AND SUPPLY OF POTABLE DRINKING WATER TO 2.1 MILLION PEOPLE THAT CALL SAN ANTONIO HOME, AS WELL AS OUR ALMOST 40 MILLION VISITORS EACH YEAR. THESE POTABLE WATER SERVICES ARE DELIVERED DIRECTLY TO OUR ROUGHLY 582,000 CUSTOMER CONNECTIONS THROUGH, AS ANDREA MENTIONED, OUR 7900 MILES OF WATER MAINS. 
          AFTER OUR CUSTOMERS ARE DONE USING THE WATER PROVIDED, MUCH OF IT IS RETURNED TO SAWS THROUGH OUR WASTEWATER COLLECTION SYSTEM, WHICH SUPPORTS, AGAIN, MORE THAN 520,000 CONNECTIONS. WASTEWATER FLOWS FROM SAWS' COLLECTION SYSTEM ARE TRANSPORTED THROUGH 6100 MILES OF GRAVITY SEWER MAINS, GRAVITY FOR THE MOST PART, TO BE TREATED AT ONE OF OUR THREE WASTEWATER TREATMENT PLANTS. OR AS WE LIKE TO REFER TO THEM, WATER RECYCLING CENTERS. WHILE MUCH OF THIS TREATED WATER IS RETURNED TO THE ENVIRONMENT, SAWS ALSO MAINTAINS ONE OF THE NATION'S LARGEST RECYCLE WATER SYSTEMS, DELIVERING HIGHLY TREATED EFFLUENT THROUGH 130-MILE PURPLE PIPE NETWORK THAT WE'LL TALK A LITTLE BIT MORE ABOUT IN A BIT. FINALLY, SOMETHING THAT SOME PEOPLE DON'T REALIZE IS THAT SAWS ALSO OWNS, OPERATES AND MAINTAINS FOUR THERMAL ENERGY FACILITIES PROVIDING DISTRICT COOLING SERVICES TO GOVERNMENTAL AND PRIVATE ENTITIES, BOTH DOWNTOWN AND AT THE PORT OF SAN ANTONIO. 
          AS SHOWN ON THIS SLIGHT, THE PROVISION OF WATER AND SEWER SERVICES IS EXTREMELY CAPITAL INTENSIVE, WITH SAWS HAVING BUDGETED FOR APPROXIMATELY $2.9 BILLION IN CAPITAL IMPROVEMENTS SINCE OUR LAST WATER RATE INCREASE IN 2020. THAT INCREASE IS 2020 WAS TO SUPPORT THE VISTA RIDGE WATER COMING ONLINE. 
          THIS WAS TOUCHED ON A LITTLE BIT, BUT THE FIRST STEP OBVIOUSLY IN BEING ABLE TO PROVIDE A RELIABLE SOURCE OF SUPPLY TO OUR CUSTOMERS IS TO HAVE A DIVERSIFIED WATER SUPPLY PORTFOLIO, AS YOU SEE DEPICTED HERE. 
          THE WATER SUPPLY BUSINESS WAS SPECIFICALLY CREATED IN 2000 THROUGH AN ACT OF THE THIS CITY COUNCIL TO ASSIST SAWS IN DIVERSIFYING ITS WATER SUPPLY PORTFOLIO. AT THAT TIME BACK IN 2000, 100% OF OUR WATER CAME FROM THE EDWARDS AQUIFER. DURING THE LAST 25 YEARS, SAWS HAS DEVELOPED A DIVERSIFIED WATER PORTFOLIO CONSISTING OF 13 DIFFERENT PROJECTS FROM SEVEN DIFFERENT WATER SOURCES TO ENSURE A SUSTAINABLE, RELIABLE SUPPLY FOR OUR COMMUNITY, EVEN DURING TIMES OF SEVERE DROUGHT LIKE WE FIND OURSELVES IN TODAY. AS MENTIONED PREVIOUSLY, THE NEXT STEPS IN THE WATER CYCLE PROCESS ARE THE DISTRIBUTION OF WATER TO OUR ALMOST 600,000 SERVICE CONNECTIONS AND THE COLLECTION OF THE NONIRRIGATION PORTION OF THAT WATER THROUGH OUR WASTEWATER COLLECTION SYSTEM. ALL TOLD, WE HAVE APPROXIMATELY 14,000 MILES OF WATER AND SEWER MAINS COMBINED, BURIED UNDER THE STREETS OF SAN ANTONIO, THAT WE MUST MAINTAIN AND REPLACE ON A REGULAR BASIS. 
          YOU CAN ALSO SEE DETAILED SOME OF THE ADDITIONAL INFRASTRUCTURE REQUIREMENTS, INCLUDING VALVES, FIRE HYDRANTS, MANHOLES, ET CETERA. 
          [00:25:01]
THE FINAL PORTION OF SAWS WATER CYCLE IS ONE OF THE MOST COMPLEX AND IMPORTANT, AND THAT IS THE WASTEWATER TREATMENT OR WATER RECYCLING PROCESS. AS YOU CAN SEE HERE, THE OLDEST -- WE HAVE THREE PRIMARY TREATMENT PLANTS, CONSIST OF TOTAL PERMITTED CAPACITY OF 187 MILLION-GALLONS A DAY. STARTING WITH THE LARGEST FACILITY, THE STEVEN MCLAUSE WATER FACILITY CAME ONLINE IN 1987, 10500-GALLONS A DAY. LEON CREEK IS THE SECOND LARGEST PLANT AND YOU CAN SEE THAT PLANT IS NOW 60 YEARS OLD, HAVING COME ONLINE IN 1965 WITH TREATMENT CAPACITY OF 46 MILLION-GALLONS PER DAY. 
          AND FINALLY, YOU SEE THE FAR WEST SIDE OF TOWN SERVING THE FAR WEST SEWER SHED IS THE MEDIO CREEK WATER RECYCLING CENTER WHICH CAME ONLINE IN 1972. WE RECENTLY HOSTED, AS ROBERT MENTIONED, TWO DAYS OF MEETING WITH THE THREE BOND RATING AGENCIES AT THE STEVEN M.CLOUSE FACILITIES AND THEY CAME AWAY QUITE IMPRESSED AT THE SIZE AND SCALES OF THESE FACILITIES AS WELL, AS APPRECIATION OF WHAT SAWS RECEIVED AS WHAT I'VE GOT TO PUT VERY NASTY INPUT. YOU CAN SEE IT WHEN YOU GET THERE, AND CONVERTS IT INTO WATER WITH SUCH CLARITY THAT IT WAS HARD TO DISTINGUISH BETWEEN A BOTTLE OF DRINKING WATER THAT I SEE AROUND THE ROOM AND TREATED EFFLUENT PUT INTO ONE OF THOSE SAME BOTTLES. 
          YOU HAD A VERY DIFFICULT TIME TRYING TO DISTINGUISH THE TWO. 
          THESE FACILITIES ARE PARTICULARLY PERTINENT TO TODAY'S DISCUSSION AS THE PRIMARY DRIVER BEHIND THE NEED FOR FISCAL YEAR 2026 RATE ADJUSTMENT THAT WE'RE GOING TO TALK ABOUT MORE AS WE GO INTO THE PRESENTATION. 
          PLACING ADDITIONAL COST PRESSURES ON BOTH SAWS OPERATING AND CAPITAL BUDGETS DURING THE LAST FIVE YEARS HAS BEEN THE HIGHER THAN NORMAL INFLATION THAT HAS IMPACTED US ALL. AS YOU CAN SEE HERE, THE CONSUMER PRICE INDEX FOR URBAN CONSUMERS HAS RISEN MORE THAN 24% SINCE THE END OF 2020, WHILE THE CONSTRUCTION COST INDEX IS UP ALMOST 42% OVER THE LAST FOUR AND A HALF YEARS. SO WE'RE SEEING A LOT OF OUR CONSTRUCTION PROJECTS, SAME PROJECT, WE'LL BUILD A WATER TANK, SAME EXACT DIMENSIONS AS ONE WE BUILT FIVE YEARS AGO, LET YET THE COSTS ARE DOUBLE SOMETIMES. SO THE GROWTH IN BOTH OPERATING AND CAPITAL EXPENDITURES, WITHOUT CORRESPONDING GROWTH IN OPERATING REVENUES HAS RESULTED IN A DOWNWARD TREND IN SAWS KEY CREDIT METRICS. 
          THE FIRST OF THESE METRICS MEASURED SAWS ABILITY TO MEET ITS ANNUAL DEBT SERVICE REQUIREMENTS WHILE THE SECOND IS A MEASURE OF SAWS LIQUIDITY POSITION AND ABILITY TO HANDLE UNFORESEEN CIRCUMSTANCES SUCH AS THE COVID PANDEMIC AND WINTER STORM URI THAT BOTH YEARS. WHILE STILL SLIGHTLY ABOVE OUR INTERNAL TARGETS, THESE METRICS ARE WEAKENING WITH THE TOTAL BOND TO DEBT COVERAGE PROJECTED TO FALL BELOW TARGETED LEVELS IN 2026 WOWTD A RATE ADJUSTMENT. -- WITHOUT A RATE ADJUSTMENT. 
          IT'S NOT JUST SAWS THAT IS FOCUSED ON THESE KEY CREDIT METRICS, IT IS ALSO THE THREE BOND RATING AGENCIES THAT RATE SAWS' OUTSTANDING DEBT OBLIGATIONS, FITCH, MOODY'S AND S & P. AS YOU CAN SEE, SAWS HAS EXCEPTIONALLY STRONG BOND RATINGS WITH S & P HAVING RAISED OUR JUNIOR LIEN RATING, THAT'S OUR MAIN OPERATING LIEN IS THE JUNIOR LIEN LEVEL, AND YOU CAN SEE IT WAS RAISED -- IT GOT RAISED TO AA PLUS BY S & P IN 2022, AND MOODY'S FOLLOWED SUIT AND RAISED ITS RATE TO AA1, WHICH IS THE EQUIVALENT OF AA PLUS FOR MOODY'S IN 2024. SO WE HAVEN'T QUITE GOT FITCH THERE YET, BUT WE'RE WORKING ON THEM AS WELL. 
          BOTH OF THESE RATINGS ARE JUST ONE NOTCH, AS I MENTIONED BEFORE, BELOW THE HIGHEST RATINGS THAT THESE AGENCIES GIVE, SO WE HAVE VERY STRONG CREDIT RATINGS. THOSE STRONG CREDIT RATINGS TRANSLATE INTO LOWER BORROWING INTEREST COSTS THAT WE HAVE TO PAY ON OUR DEBT. 
          FOR EXAMPLE, ROBERT MENTIONED WE WENT OUT FOR BONDS JUST THE OTHER DAY, LAST WEEK I WAS IN NEW YORK, WE ISSUED 15-YEAR AVERAGE LIFE BONDS AT AN AVERAGE RATE OF 4.29%. SO VERY ATTRACTIVE FINANCING THAT WE CAN OBTAIN, BUT THAT'S IN LARGE PART DUE TO OUR STRONG CREDIT METRICS. THE BOTTOM HALF OF THIS SLIDE, I WON'T READ THEM TO YOU, BUT YOU CAN SEE A COUPLE COMMENTS THERE, THEY DO FOCUS -- YOU CAN SEE ON THAT SECOND COMMENT, THE FACTORS THAT COULD LEAD TO NEGATIVE RATING ACTION. THEY REFERENCE OUR CREDIT METRICS AND THE KEY -- AND THOSE MAINTAINING OUR TARGETS WITHIN THOSE CREDIT METRICS BEING KEY 
          [00:30:03]
TO SUPPORTING OUR CREDIT RATING. AND THEN THAT LAST ONE I WOULD SAY, S & P WAS VERY FOCUSED, THEY KNOW WE NEED A RATE ADJUSTMENT AND THEY'RE COGNIZANT OF THAT AS WE WALK FORWARD. AND WE CAN'T CONTINUE WITH THE CAPITAL PLAN I'M GOING TO OUTLINE FOR YOU OVER THE NEXT FIVE YEARS WITHOUT ADDITIONAL RATE SUPPORT. SO WHAT IS OUR NEED FOR 2026 RATE SUPPORT? THE PRIMARY DRIVER IS, AGAIN, NEEDED CAPITAL IMPROVEMENTS. AS YOU CAN SEE HERE, WE'RE PLANNING TO SPEND MORE THAN $340 MILLION TO REHABILITATE OUR TWO LARGEST WATER RECYCLING CENTERS THAT WE JUST TALKED TO YOU, STEVEN M.CLOUSE FACILITY AS WELL AS THE LEON CREEK FACILITY. WE WERE FORTUNATE ENOUGH BACK IN 2013, WE ENTERED INTO A CONSENT DECREE WITH THE EPA REGARDING SANITARY SEWER OVERFLOWS AND AT THAT TIME WE DID A LOT TO TRY TO KEEP OUR WASTEWATER TREATMENT PLANTS OUT OF THAT CONSENT DECREE. 
          WE WERE SUCCESSFUL IN DOING SO, BUT WE SPENT ALL OF OUR MONEY OVER THOSE LAST -- BASICALLY THE LAST DECADE, WORKING ON FIXING OUR COLLECTION SYSTEM SO THAT WE WERE IN COMPLIANCE WITH THE CONSENT DECREE, BUT WE DEFERRED SOME OF THE NECESSARY CAPITAL EXPENDITURES ON OUR WASTEWATER TREATMENT PLANTS AND NOW IT'S TIME THAT WE CATCH -- CATCH UP ON SOME OF THOSE THINGS. SO FAILURE TO MAKE THOSE IMPROVEMENTS IS LIKELY TO RESULT IN PERMIT VIOLATIONS, AND COULD TRIGGER ADDITIONAL ENVIRONMENTAL OVERSIGHT, WE COULD GET BROUGHT IN. HOUSTON'S GOING THROUGH A WASTEWATER CONSENT DECREE RIGHT NOW. AND I BELIEVE THAT THEIR TREATMENT PLANTS ARE INCLUDED IN THAT DECREE. IT WOULD NOT BE BEYOND THE REALM OF REASONING FOR THAT TO HAPPEN TO US AS WELL. 
          SAWS IS ALSO PLANNING TO INVEST ANOTHER 125 MILLION INTO WATER DELIVERY DISTRIBUTION NETWORK IMPROVEMENTS WITH THE GOAL AS ANDREA TALKED ABOUT, CONTINUING TO FURTHER OUR WATER STEWARDSHIP INITIATIVE. 
          WE NEED TO KEEP INVESTING IN THOSE WATER MAINS AND DRIVING DOWN THAT NONREVENUE WATER TO THE LEVELS ANDREA SPOKE ABOUT. 
          THAT'S PARTICULARLY CRITICAL AS SAN ANTONIO REMAINS IN EXTREME DROUGHT WITH SAWS PRIMARY WATER SOURCE, THE EDWARDS AQUIFER, IT IS AND WILL CONTINUE TO BE OUR PRIMARY WATER SOURCE, BUT IT'S CONTINUING TO REMAIN NEAR RECORD LOWS. 34 FEET BELOW NORMAL FOR THIS TIME OF YEAR. 
          I LOOKED IT UP TODAY. WE'RE AROUND 628 FEET, SO IT IS VERY CHALLENGING TIMES RIGHT NOW WITH RESPECT TO THE EDWARDS AQUIFER. 
          SO BEFORE TURNING OUR ATTENTION TO THE FIGURES INCLUDED IN OUR 2026 PROPOSED BUDGET, I DO WANT TO HIGHLIGHT SOME ADDITIONAL INFORMATION ON SAWS' PROPOSED BUDGET PROCESS. AS STATED PREVIOUSLY, WE ARE PLANNING TO SEEK A RATE ADJUSTMENT FOR 2026 TO ALLOW US TO CARRY OUT NEEDED CAPITAL PROJECTS WHILE STILL MAINTAINING OUR CREDIT METRICS AND BOND RATINGS. HOWEVER, WE ARE COGNIZANT, THERE'S A LOT OF NEW FACES IN THIS ROOM FOR ME, I HAVEN'T MET MANY OF YOU YET AT THIS POINT IN TIME, SEVERAL OF YOU HAVE CARRIED OVER, BUT OBVIOUSLY YOU'VE HAD TURNOVER AT COUNCIL, WE'VE HAD A LOT OF TURNOVER. 
          WE HAVE THREE NEW BOARD MEMBERS THAT ARE GOING TO SIT FOR THEIR VERY FIRST MEETING NEXT WEEK. SO DIDN'T THINK BRINGING A RATE INCREASE TO THE VERY FIRST MEETING AND SAYING, HEY, YOU'VE GOT A MONTH AND WE'RE GOING TO COME BACK TO YOU AND ASK YOU FOR A RATE ADJUSTMENT IN NOVEMBER, WHEN WE NEED TO APPROVE A BUDGET, SO WE'RE ACTUALLY APPROVING AN INTERIM BUDGET. 
          WE'RE ASKING THEM TO APPROVE A AN INTERIM BUDGET THAT DOES NOT NECESSITATE A RATE INCREASE, AND THE WAY THAT WE'RE FACILITY TATING THAT IS THE TEMPORARY DEFERRAL, WHAT WE HOPE, OF ABOUT $350 MILLION  OF CAPITAL IMPROVEMENT PROJECTS, WHICH, IN TURN, RESULTS IN LOWER FORECAST DEBT SERVICE LEVELS. SO PROVIDING SOME ADDITIONAL DETAILS ON THE PROPOSED CAPITAL PROJECT DEFERRALS, THE BAR CHART ON THIS SLIDE SIMPLY SHOWS A COMPARISON OF THE 2026CIP NEEDS AS THEY HAVE BEEN IDENTIFIED  AS SAWS STAFF, BROKEN DOWN BY BUSINESS UNIT, AS COMPARED TO THE PROPOSED INTERIM BUDGET LEVEL, AND THEN ON THE RIGHT-HAND SIDE OF THE CHART, YOU SEE A BRIEF DESCRIPTION OF THE PRIMARY PROJECT DEFERRALS OUTLINED FOR YOUR BENEFIT. AS YOU CAN SEE, TREATMENT REHABILITATION PROJECTS TOTALING MORE THAN 250 MILLION HAVE BEEN RECOMMENDED FOR TEMPORARY DEFERRAL AS WE HAVE OTHER WASTEWATER MAIN REPLACEMENT PROJECTS, AS HAVE OTHER WEERT MAIN REPLACEMENT PROJECTS INCLUDING GOVERNMENTAL. IN TOTAL, WASTEWATER WATER CAPITAL IMPROVEMENTS TOTAL 270 MILLION HAVE BEEN RECOMMENDED. 
          [00:35:02]
ON THE WATERSIDE OF THE BUSINESS, THERE'S $22 MILLION IN PROPOSED DEFERRALS WITH THE BULK OF THESE ATTRIBUTABLE TO REDUCE REPLACEMENT OF WATER MAINS, INCLUDING GOVERNMENTAL. SO NOW LOOKING AT NUMBERS, THIS FIRST PART OF THE SLIDE SHOWS YOU BOTH FOR 2023 AND 2024 ACT WALLACE WELL AS 2025 BUDGET AND 2025 FORECAST, WHICH CONSIST TION OF EIGHT MONTHS OF ACTUAL AND FOUR MONTHS OF BUDGET. 
          YOU CAN SEE THE FIGURES THERE. AS YOU CAN SEE, THE ORGANIC GROWTH AND OPERATING AND NONOPERATING REVENUES HAS BEEN MORE THAN COMPLETELY OFFSET BY INCREASED O & M COSTS AND DEBT SERVICE EXPENDITURES, WHICH RESULTS IN A DOWNWARD TRAJECTORY IN THE TRANSFER Z TO THE UNRESTRICTED RENEWAL AND REPLACEMENT FUND. 
          BASICALLY, WHEN WE GO THROUGH OUR FLOW OF FUNDS, TAKE ALL OF OUR REVENUES, WE HAVE TO SERVICE OUR O & M COST FIRST, THEN WE MEET OUR DEBT SERVICE COST, THEN WE MAKE OUR TRANSFER TO THE CITY OF SAN ANTONIO, WHICH CURRENTLY SITS AT 4% OF OUR GROSS OPERATING REVENUES, AND THEN ANYTHING LEFT IS TRANSFERRED TO THE RENEWAL AND REPLACEMENT PROJECT -- OR FUND. THAT HELPS FUND FUTURE CAPITAL IMPROVEMENT PROJECTS, AS WELL AS PROVIDES OUR DEBT COVERAGE IN THE CURRENT YEAR. SO WHEN THAT NUMBER IS GOING DOWN, OUR DEBT COVERAGE METRICS ARE ALSO GOING DOWN. SO LOOKING AT THE 2026 PROPOSED INTERIM BUDGET, YOU CAN SEE -- ONE CAN SEE THAT O & M COSTS ARE PROJECTED TO INCREASE BY ABOUT -- I'M SORRY, I WAS TALKING ABOUT -- WE ARE PROJECTING A SMALL GROWTH IN THE LEVEL OF OPERATING REVENUES, BUT IT'S LESS THAN, AS YOU CAN SEE THERE, LESS THAN 1% FROM THE 2025 BUDGET LEVELS. 
          WHILE WE'RE ALSO FORECASTING A REDUCTION IN INTEREST INCOME, SHORT-TERM INTEREST RATES ARE PROJECTED TO DECLINE SLIGHTLY AS WE GO THROUGH THE YEAR. OVERALL, WE ARE PROJECTING A $6.4 MILLION INCREASE IN THE TOTAL SOURCES OF FUNDS FOR THE YEAR AS COMPARED TO THE 2025 APPROVED BUDGET. LOOKING AT THE 2026 PROJECTED USES OF FUNDS, ONE CAN SEE THAT O & M COSTS ARE PROJECTED TO GO UP BY 9.3 MILLION AS COMPARED TO 2025 BUDGET LEVELS. WE'LL TALK MORE ABOUT THAT IN JUST A MINUTE, WHILE DEBT SERVICE AND EXPENSES ARE FORECASTED TO DECLINE BY JUST OVER A MILLION DOLLARS AS A RESULT OF THE FACT THAT WE HAVE TEMPORARY CIP DEFERRALS, WE WERE ABLE TO REFINANCE THOSE BONDS AT A SLIGHTLY LOWER INTEREST RATE THAN WE HAD PREVIOUSLY FORECAST, SO THAT'S WHAT'S GENERATING THE SAVINGS. BASICALLY, WE'RE ISSUING NO NEW BONDS IN 2026 WITH THIS REDUCED CAPITAL PLAN. 
          THE REMAINDER OF THE USES OF FUNDS ARE QUITE CLOSE TO 2025 BUDGET LEVELS. 
          SO I NEXT WANT TO TAKE A SLIGHTLY CLOSER LOOK AT SAWS 2026-2030 CAPITAL PLANS. AS MENTIONED PREVIOUSLY DURING THIS BRIEFING, SAWS IS AN EXTREMELY CAPITAL INTENSIVE BUSINESS WITH NEEDED CAPITAL IMPROVEMENTS PROJECTED TO BE THE PRIMARY DRIVER BEHIND FUTURE RATE ADJUSTMENT REQUESTS. AS SHOWN ON THIS SLIDE, SAWS IS PROJECTING QUITE SIGNIFICANT CAPITAL NEEDS OVER THE FIVE-YEAR PERIOD FROM '26 TO '30, WITH TOTAL CIP OF MORE THAN $2.2 BILLION OVER THAT FIVE-YEAR TIME PERIOD AND 608 MILLION ON A STAND-ALONE BASIS FOR 2026.  AGAIN, THAT REFLECTS WHAT WE BELIEVE WE NEED. 
          GOING INTO A LITTLE BIT MORE DETAIL ON THAT PLAN, YOU CAN SEE IT BROKEN DOWN A LITTLE BIT MORE INTO ITS VARIOUS COMPONENTS, YOU SEE IT BROKEN DOWN BETWEEN WATER DELIVERY, WASTEWATER, CHILLED WATER, WATER SUPPLY, AS WELL AS SOME ADDITIONAL CATEGORIES THAT WE HAVE THERE. 
          AS YOU CAN SEE, THE LARGEST PORTION OF OUR PROJECTED 3.2 BILLION IN CAPITAL NEEDS IS THE MORE THAN $1.7 BILLION NEEDED FOR WASTEWATER, WITH MOST OF THAT SPEND TARGETED FOR OUR WASTE TREATMENT FACILITIES WITH ANOTHER SIGNIFICANT PORTION DEDICATED TO MAIN REPLACEMENTS, IN PARTICULAR ONE PROJECT THAT'S OUT -- YOU SEE A FAIRLY LARGE NUMBER, 308 MILLION IN MAIN REPLACEMENT SEWER OUT IN 2030. 
          WE'RE HOPING THAT PROJECT CAN BE DEFERRED A LITTLE BIT LONGER, BUT ULTIMATELY, WE WILL LIKELY HAVE TO CONSTRUCT THAT PROJECT TO DWREAS SOME CAPACITY CONCERNS. AT LEAST $1.2 BILLION IS PROJECTED TO BE SPENT WITHIN WATER DELIVERY WITH THE LARGEST PORTION DEDICATED TO MAIN REPLACEMENT ACTIVITY AS WE JUST SPOKE ABOUT. SO WRAPPING THINGS UP, I JUST WANT TO SHOW A COUPLE DIFFERENT RATE COMPARISONS WITH OTHER TEXAS CITIES BEFORE OPENING UP FOR ANY FURTHER QUESTIONS THAT YOU ALL MIGHT HAVE. FIRST, I KNOW THAT I'VE MENTIONED THE NEED FOR RATE SUPPORT MORE THAN ONCE IN THIS BRIEFING. WHILE RATE INCREASES ARE NEVER FUN FOR ANYONE INVOLVED, I NEXT WANT TO HIGHLIGHT SAWS SAWS 
          [00:40:05]
EFFORTS DURING THE LAST SEVERAL YEARS FOR KEEPING THE RATES AMONG THE VERY LOWEST IN THE STATE FOR ESSENTIAL USAGE. IN JANUARY 2020, SAWS IMPLEMENTED THE LAST OF A SET OF FIVE PREAPPROVED ANNUAL RATE ADJUSTMENTS THAT WERE ESSENTIAL TO BEING ABLE TO ENTER INTO THE AGREEMENT FOR 50,000-ACRE FEET ANNUALLY OF VISTA RIDGE WATER. I HATE TO THINK WHERE WE'D EVEN BE WITHOUT THAT 50,000-ACRE FEET NOW AS WE GO THROUGH THIS DROUGHT. AT THE END OF THAT YEAR, A SAWS RESIDENTIAL CUSTOMER USING 6,000-GALLONS OF WATER AND SEWER SERVICE PER MONTH PAID $69.30 FOR THIS COMBINED SERVICE, WHILE THE AVERAGE FOR THE OTHER FOUR LARGEST CITIES IN TEXAS FOR THE SAME COMBINED SERVICE WAS $77.37, A DIFFERENCE OF A LITTLE MORE THAN $8. FAST-FORWARD TO CURRENT, AND DUE TO THE 2023 RATE STUDY AND RESTRUCTURING THAT SAWS -- A SAWS RESIDENTIAL CUSTOMER USING THAT SAME AMOUNT OF WATER AND SEWER WOULD NOW PAY AS OPPOSED TO $69.30, THEY'RE NOW PAYING $63.27 PER MONTH, A REDUCTION OF A LITTLE MORE THAN $6, OR ALMOST 9% COMPARED TO 2020. 
          DURING THAT SAME FIVE-YEAR PERIOD, THE AVERAGE BILL FOR RESIDENTIAL CUSTOMER USING 6,000-GALLONS OF WATER AND SEWER SERVICE IN THE OTHER FOUR LARGEST CITIES IN TEXAS WENT UP BY MORE THAN $20 A MONTH, OR 26% PER MONTH. EXPANDING THE UNIVERSE TO 10 OF THE LARGEST CITIES IN TEXAS, AND BASING THE COMPUTATIONS ON THE USAGE LEVELS OF SAWS ACTUAL AVERAGE RESIDENTIAL CUSTOMER, WHICH CURRENTLY STANDS AT SOMEWHERE AROUND 6300-GALLONS OF WATER, AND ABOUT 5,000-GALLONS OF SEWER AS YOU SEE DEPICTED ON THIS SLIDE, ONE CAN SEE THAT AS OF OCTOBER 2025, SAWS COMBINED WATER AND SEWER BILL WAS LOWER THAN ANY OF THE NINE OTHER TEXAS CITIES LISTED. I WOULD ALSO POINT OUT THE RATE CHARGE WHEN WE DEVELOPED A SPECIAL RATE FOR THOSE CUSTOMERS THAT QUALIFY FOR OUR UPLIFT ASSISTANCE PROGRAM, AND YOU CAN SEE WHAT THAT SAME CUSTOMER WOULD PAY FOR THAT AVERAGE RESIDENTIAL CUSTOMER IF THEY DID QUALIFY FOR THE UPLIFT PROGRAM. SO THIS LAST SLIDE JUST SHOWS YOU KIND OF THE PROPOSED 2026 BUDGET CALENDAR. OBVIOUSLY, WE'RE HERE IN FRONT OF YOU TODAY. WE'RE GOING TO BE TALKING TO OUR BOARD, WE HAVE OUR FIRST PUBLIC HEARING ON THE PROPOSED 2026 INTERIM BUDGET. 
          WE ARE LOOKING FOR A VOTE, HAVING THE SECOND PUBLIC HEARING ON THAT SAME BUDGET, AND HAVE A VOTE, AGAIN, AS LONG AS THE BUDGET DOES NOT REQUIRE A RATE REQUEST, IT DOESN'T HAVE TO COME BACK IN FRONT OF CITY COUNCIL FOR APPROVAL. BUT ONCE WE DO ASK FOR ANY RATE ADJUSTMENT, WHICH WE WOULD ANTICIPATE SOMETIME IN EARLY 2026, WE WOULD BE BACK IN FRONT OF COUNCIL AT THAT TIME. SO WITH THAT, THAT'S ALL MY PREPARED REMARKS, BUT WOULD BE HAPPY TO ANSWER ANY QUESTIONS THAT Y'ALL MIGHT HAVE. 
          >> MAYOR JONES: THANK YOU FOR THE VERY HELPFUL PRESENTATIONS, AND I THINK, YOU KNOW, WHAT YOU JUST LAID OUT HERE IS REALLY IMPORTANT AS TO WHY WE HAVE MORE FREQUENT TOUCH POINTS WITH YOU, ESPECIALLY AS A BODY, AS WE THINK ABOUT THESE MAJOR INVESTMENTS. THERE'S ALSO, I THINK, AN OPPORTUNITY FOR THIS BODY TO BE THINKING ABOUT WAYS IN WHICH WE CAN HELP OURSELVES. THIS IS -- AS YOU LAID OUT, EQUALLY AN OPPORTUNITY TO THINK ABOUT CONSERVATION AS WE THINK ABOUT THOUGHTFUL UPKEEP, RIGHT? THESE CAPITAL IMPROVEMENT PROJECTS, IT KIND OF REMINDS ME OF A CONVERSATION WE HAD WITH CHIEF MCMANUS WHEN HE WAS HERE AND WE WERE TALKING ABOUT HIS STAFFING REQUEST, AND WE ASKED, YOU KNOW, WHAT IS THAT BASE ON? AND HE SAID WORKLOAD. 
          SO SIMILARLY, THE WORK THAT YOU ALL NEED TO DO TO MAKE SOME OF THESE REPAIRS IS ALSO, IN FACT, BASED ON WORKLOAD, RIGHT? SO HOW CAN WE THINK ABOUT REDUCING THAT WHICH IS ULTIMATELY A WAY IN WHICH WE CAN SAVE OURSELVES SOME RESOURCES IN THE MONEY -- IN THE SUPPLY THAT WE HAVE TO SECURE AS WELL AS IN THE UPKEEP OF THE INFRASTRUCTURE AS YOU'VE LAID OUT. ONE OF THE THINGS I WANTED TO TOUCH UPON AS WELL WHEN WE'RE THINKING ABOUT THIS, I HAVE THE BENEFIT OF KNOWING SOME OF THIS, HAVING -- SITTING ON THE BOARD, WHEN WE ALSO THINK ABOUT THESE INFRASTRUCTURE COSTS, GOING BACK TO, AGAIN, A WAYS IN WHICH WE CAN HELP OURSELVES WITH THE WORKLOAD AND THE STRESS ON THE IT INFRASTRUCTURE, IS, IN FACT, WHEN WE THINK ABOUT SOME OF THESE DEVELOPMENT PROJECTS AND PUTTING IN THINGS IN PLACE THAT MAY ALLOW US TO EXPAND, EXTEND, RATHER, THE LIFE -- LIFESPAN OF SOME OF THIS INFRASTRUCTURE. 
          THE MORE -- THE HIGHER DEMAND ON THESE THINGS, THE SOONER WE HAVE TO REPAIR THEM, THE SOONER WE HAVE TO REPLACE THEM, TO YOUR POINT ABOUT THE FOURTH BUCKET OF MONEY THAT WE -- THAT IT GOES INTO. 
          SO THERE ARE WAYS IN WHICH WE CAN HELP OURSELVES IN THE LONG TERM. YOU KNOW, SIMILARLY, THERE ARE SOME OTHER 
          [00:45:02]
COSTS THAT WE COME ACROSS AND MAYBE ARE NOT NECESSARILY THINKING ABOUT IT IN THIS CONVERSATION TOMORROW ON CONSENT AGENDA, THERE'S A $1.6 MILLION ITEM AUTHORIZATION CONSERVATION EASEMENT OVER EDWARDS AQUIFER CONTRIBUTING ZONE OVER UVALDE COUNTY, RIGHT? SO ALL THE OTHER COSTS RELATED TO HOW WE SECURE OUR WATER SUPPLY, WE NEED TO BE I THG ABOUT AS WELL, WHEN WE THINK ABOUT THIS VERY IMPORTANT MUNICIPALITY. I WANT TO ASK JUST -- WELL, LET ME JUST MAKE ONE OTHER POINT ON THIS, THE OTHER THING THAT HAS REALLY JUMPED OUT WHEN WE'VE HAD THIS PREVIOUS CONVERSATION ON THE BOARD IS THINKING ABOUT WHAT THE COST OF SOME OF THESE PROJECTS ARE, LONGER TERM, NOT ONLY DUE TO TARIFFS AND INFLATION AND ALL THAT, BUT ALSO WHEN WE THINK ABOUT THE DIFFERENT KINDS OF WORK THAT IS NEEDED AS WE ARE ALSO MAKING SURE THE INFRASTRUCTURE IS MORE RESILIENT. DROUGHTS IMPACT THE WAYS IN WHICH THESE LINES ARE ABLE TO WITHSTAND VARIOUS PRESSURES. 
          SO WE RECOGNIZE THAT. I KNOW THAT WAS, YOU KNOW, A TOPIC OF DISCUSSION AT ONE OF OUR LAST MEETINGS, BUT WE CAN'T -- YOU KNOW, AS WE'RE THINKING ABOUT THE OTHER THINGS THAT ARE CONTRIBUTING TO THE STRESSES ON THIS INFRASTRUCTURE, I THINK THAT'S AN IMPORTANT PIECE AS WE LOOK AT THE COST OF THOSE MATERIALS. AND FRANKLY, THE COST OF LABOR THAT IS ALSO RISING AS WE LOOK TO COVER THIS. 
          THANK YOU FOR THE COMPARISON WITH THE OTHER CITIES, BECAUSE I THINK IT IS ALSO HELPFUL. AGAIN, MY COLLEAGUES, WE ALL ARE FIELDING LOTS OF CONCERNS, NOT ONLY ABOUT AFFORDABILITY IN HOUSING AND HEALTHCARE, CERTAINLY IN FOOD AND IN ENERGY, AND IT DOES -- WHEN WE ARE SPEAKING, AGAIN -- WE CAN THINK ABOUT OTHER THINGS AT THE SAME TIME THAT WE'RE THINKING ABOUT THIS IN PARTICULAR, ECONOMIC DEVELOPMENT, RIGHT? AND WHILE THESE COSTS ARE LOWER, THEY ARE -- THE WAGES ARE ALSO RELATIVELY LOWER IN OUR COMMUNITY, IT IS STILL HARD FOR THE WORKING FAMILIES IN OUR COMMUNITY TO DEAL WITH ANY UNNECESSARY SPIKES, OR FRANKLY, DEAL WITH SOME OF THE CUTS THAT WE WILL BEGIN TO SEE AS A RESULT OF DECISIONS AT THE FEDERAL LEVEL. I DO WANT TO FOOT STAMP ON THERE, I DON'T THINK YOU SAID IT, BUT IT WAS ON YOUR SLIDE, THAT THE RATE INCREASE THAT SAWS WILL REQUEST OF THIS COUNCIL DOES NOT INCLUDE THE COST TO MOVE THE 
          CHILLED WATER PLANT DOWNTOWN, CORRECT? >> CORRECT. 
          IT DOES NOT INCLUDE THAT. I'M SORRY, I SHOULD HAVE 
          MADE THAT REFERENCE IN MY PRESENTATION, BUT... >> MAYOR JONES: AND CAN YOU JUST OUTLINE WHAT THAT COST MAY POTENTIALLY BE? AND THEN WHEN THAT -- THAT COST MAY BE EXPECTED TO COME BEFORE THIS BODY 
          FOR RATE INCREASE? >> WELL, IT -- WE DON'T HAVE A NUMBER FINALIZED YET. I DON'T KNOW -- JAIME OR -- DO YOU WANT TO 
          SPEAK TO THAT? >> SO WE ENGAGED JACOBS ENGINEERING TO GIVE US A SPECIFIC NUMBER, AND THAT SHOULD COME RIGHT BEFORE THANKSGIVING.  BUT I'M PRETTY CONFIDENT SAYING IT'S NOT GOING TO BE SOUTH OF $200 MILLION. 
          >> MAYOR JONES: IT WILL NOT BE SOUTH OF $200 MILLION. 
          OKAY. THANK YOU. LASTLY, JUST BECAUSE IT'S ALSO A MAJOR TOPIC AND MAJOR ECONOMIC DEVELOPMENT, AS SOME OTHER COSTS RELATED TO IT, -- AND IT COMES UP IN THE CONVERSATION AROUND CPS, BUT THE STRESS ON -- THE DEMAND RATHER, INCREASED DEMAND, AS A RESULT OF DATA CENTERS. CAN YOU TALK ABOUT HOW THAT INCREASED DEMAND FOR WATER IS IMPACTING THE STRESS ON THE INFRASTRUCTURE AND MAYBE OUR NEED TO REPLACE AND RENEW SOME OF THESE THINGS SOONER RATHER THAN 
          EXPECTED? >> I WILL START AND YOU CAN ADD TO IT. 
          AS WE LOOK AT THE DATA CENTERS, UP TO THIS POINT A LOT OF THE DATA CENTERS IN THE FAR WESTERN AREA HAVE BEEN ABLE TO TAP INTO OUR RECYCLED WATER SYSTEM, WHICH HAS BEEN GREAT. BUT AS THEY GO FURTHER WEST, AS THEY GO FURTHER INTO THE OUTER REACHES OF OUR CCN, OF OUR AREA, OUR RECYCLES WATER DOESN'T EXTEND THAT FAR, SO THEY'RE LOOKING AT TYING INTO OUR POTABLE SYSTEM. WITH THAT, THE INFRASTRUCTURE IS ON THEM, THEY ARE RESPONSIBLE FOR THOSE COSTS. 
          I THINK, MAYOR JONES, TO YOUR POINT, IT'S LOOKING AT THAT SUPPLY -- IN AUDIO] -- IN TERMS OF OUR BENEFIT, IN TERMS OF LOOKING AT, OKAY, DO WE HAVE ENOUGH SUPPLY AND HOW DOES THAT AFFECT THE POPULATION PROJECTIONS THAT WE WERE ANTICIPATING? SO THAT, WE ARE TAKING A LOOK AT BECAUSE WE HADN'T PLANNED FOR THAT IN TERMS OF OUR WATER MAINS PLAN, SO THAT CHANGES THE PICTURE, THAT CHANGES THE LANDSCAPE. 
          >> MAYOR JONES: GREAT. THANKS FOR LAYING THAT FLAT. 
          CHAIR GALVAN? >> GALVAN: THANK YOU, MAYOR. 
          THANK YOU TO THE FOLKS IN SAWS FOR DOING THEIR PRESENTATIONS TODAY. 
          OKAY. I'M REALLY GRATEFUL FOR THE WORK THAT Y'ALL HAVE BEEN DOING TO MAKE SURE THAT THE RATES THAT WE DO HAVE AT SAWS ARE AS 
          [00:50:01]
EQUITABLE AS THEY CAN BE, THINKING ABOUT, OF COURSE, FUTURE DEVELOPMENT BUT ALSO CURRENT RATE STRUCTURES WITH RESIDENTS ENSURING THE USAGE IS ALWAYS TIED TO THE PAYMENT, RIGHT? MAKING SURE THAT IT'S AS EQUITABLE AS IT CAN BE FOR RESPECTS WITH VARIOUS INCOMES HERE IN OUR CITY, AND SO I REALLY APPRECIATE THAT WORK. AND THE FOCUS, OF COURSE, MAKING SURE WE'RE REDUCING ANYWHERE WE CAN, EXCESS WATER USAGE, INCLUDING WITHIN THE NONREVENUE WATER PROGRAM. 
          ONE OF THE QUESTIONS I HAD FOR THAT WAS, WHAT SCALE WOULD THE -- WHAT IS IT CALLED -- IT WAS THE TECHNOLOGY, THE HIDDEN LEAKAGE TECHNOLOGY, WHAT SCALE WOULD THAT BE? I KNOW IT'S STILL VERY EARLY WITH IT, BUT WOULD IT BE JUST FOR SAWS LOOKING AT MAINLINES OR WOULD IT BE LOOKING AT RESIDENTS WITH THEIR METERS WE FIND HIGH USAGES THEY'RE NOT REGULARLY ABLE TO BE SEEN BUT MORE SO WITHIN THE 
          ACTUAL PIPING. >> INITIALLY IT'S GOING TO BE IN OUR MAINLINES BUT THAT DOESN'T MEAN IN THE FUTURE WE CAN'T EXPAND IT AS WE GET MORE MATURE IN OUR PROGRAM, THEN TO START LOOKING AT THOSE SERVICE LINES AS 
          WELL. >> GALVAN: OKAY. >> BUT THE VOLUME OF LEAKS FROM OUR MAINLINES IS OUR CONCERN, SO, AGAIN, TRIAGING AND ATTACKING THOSE FIRST TO GET THE BIGGEST BANG FOR OUR WORK IS OUR 
          EMPHASIS. >> GALVAN: OF COURSE. I THINK IT'S VERY THOGHTFUL, BUT ALSO IN THE FUTURE WE CAN SUPPORT RESIDENTS AS WELL WITH THAT. IT CAN BE A BIT OF STRUGGLE FOR RESIDENTS WHEN WE GET THE NEW WATER METERS SOME TRADE IN THE COMMUNITY WITH PLUMBERS DON'T REALLY KNOW HOW TO INTERACT BECAUSE IT'S NEW TO EVERYBODY, MAKING SURE THERE'S SOME RESOURCES AVAILABLE FOR RESIDENTS TO IDENTIFY WHAT'S GOING ON WITHIN THEIR HOMES, ESPECIALLY FOLKS WHO DON'T HAVE THE RESOURCES FULLY TO ADDRESS THE ISSUE TO REDUCE THEIR -- OF COURSE LATER THEIR DEBT, THEY HAVE A BIG LEAK THAT THEY CAN'T REALLY AFFORD TO ADDRESS, FIGURING OUT WHERE IT'S COMING FROM AND HOW THEY CAN -- 
          >> I KNOW YOU TALKED AT OUR AMI METERS AS WELL AS OUR AFFORDABILITY PROGRAMS, SO I DEFINITELY JUST WANTED TO SAY, DEFINITELY, WE ARE LOOKING AT EXPANDING OUR AFFORD BILITIES PROGRAMS AS WELL AS OUR PLUMBERS TO PEOPLE PROGRAM AS WELL AS OUR LATERALS TO PEOPLE PROGRAM. 
          SO AS WE USE OUR AMI DATA AND HAVE THAT ENGAGED CUSTOMER EXPERIENCE, AS OUR CUSTOMERS GET MORE FAMILIAR AND COMFORTABLE WITH LOOKING AT THEIR DATA ON AN HOURLY BASIS, BEING ABLE -- OBVIOUSLY WE'RE PROVIDING THEM WITH LEAK NOTIFICATIONS AND LETTING THEM KNOW, OF COURSE, NOT JUST ONE TIME THROUGHOUT THE MONTH, BUT WE CAN TELL THEM WITHIN A COUPLE OF HOURS THAT THEY DO -- WE ARE SEEING UNUSUAL HIGH USAGE COMING FROM THEM, SO WE ARE ACTUALLY REACHING OUT PROACTIVELY REGARDING ANY PLUMBERS TO PEOPLE, ANYONE WHO, AGAIN, IS IN OUR AFFORDABILITY PROGRAMS, WE'RE PROACTIVELY PROVIDING THAT NOTIFICATION AS WELL AS OFFERING OUR PLUMBERS TO PEOPLE PROGRAMS. AND, OF COURSE, GAVINO'S TEAM DEFINITELY IS OUT THERE IN THE COMMUNITY TRYING TO SIGN AS MANY PEOPLE UP IN THESE PROGRAMS. WE'LL CONTINUE TO DO THAT AND CONTINUE TO EXPAND 
          THAT PROGRAM. >> GALVAN: THAT'S GREAT. THANK YOU, THOUGH. 
          THAT KIND OF LEADS TO MY NEXT POINT ABOUT THE RATES, OF COURSE, AND ALWAYS CONCERNED ABOUT RATE INCREASES AND PROPOSALS, JUST MAKING SURE THAT OUR RESIDENTS ARE ABLE TO AFFORD HERE IN OUR CITY IS VERY CRUCIAL, BUT I THINK YOU LAID OUT VERY CLEARLY THE NEED FOR IT, RIGHT, LOOKING AT JUST THE CAPITAL COST AND SOME OF THE AGE OF THESE RECYCLING -- WATER RECYCLING CENTERS, IT'S IMPORTANT TO TAKE A LOOK AT HOW WE CAN BETTER IMPROVE OUR SYSTEM THAT WE HAVE HERE. 
          I GUESS WHAT I WANTED TO TRY TO FIGURE OUT IS TO THE POINT ABOUT WORKING WITH THE FOLKS BASED ON AMI AND EVERYTHING LIKE THAT, DO WE HAVE -- OR I GUESS WHAT DO THE EFFORTS LOOK LIKE FOR TYING CONSERVATION EFFORTS, 
          HOME CONSERVATION EFFORTS WITH AMI PROGRAMMING? >> SO WE ACTUALLY ARE WORKING IN TANDEM. WE HAVE WORKED SO CLOSELY THAT, AGAIN, WHEN WE RECEIVE A CALL AND THEY'RE HAVING ANY TYPE OF USAGE, LIKE YOU SAID, HIGH USAGE OR ANYTHING DEALING WITH THEIR AMI DATA AND IT DEALS WITH POSSIBLY A LEAK, WE DO HAVE A VERY INVOLVED AND ENGAGED CONSERVATION TEAM THAT -- THAT WORKS WITH THEM. WE'VE CREATED -- AND I GIVE CREDIT TO GAVINO'S TEAM AND OUR CONSERVATION TEAM, THAT THEY'VE CREATED A CHECKLIST FOR US TO GO THROUGH WITH THE CUSTOMER. 
          WE'VE ACTUALLY WORKED WITH OUR -- OUR PLUMBING INSPECTIONS AND PLUMBERS ASSOCIATIONS ACROSS THE CITY, BECAUSE, AGAIN, AMI'S VERY NEW. 
          AND SO IS -- IT'S NOT NEW TO THE ELECTRIC WORLD, BUT IT'S NEW TO THE WATER THE WORLD. AND SO PLUMBERS ARE VERY SKEPTICAL ABOUT THESE METERS AND IT'S EASY FOR THAT TO BE THE ISSUE. BUT WHEN WE WALK THEM THROUGH A CHECKLIST AND PROVIDE THEM A CHECKLIST, COULD IT BE THE WATER HEATER? COULD IT BE THE IRRIGATION SYSTEM? COULD IT BE SOMETHING THAT YOU MAY NOT BE FAMILIAR WITH CHECKING? SO WE ARE TRYING TO CREATE THOSE NETWORKING POSSIBILITIES AND OPPORTUNITIES, AND, AGAIN, OUR CONSERVATION TEAM IS BEING AS PROACTIVE AS POSSIBLE WITH THE DATA THAT WE'RE RECEIVING, NOT ONLY WITH LEAKS, BUT, AGAIN, WE HAVE A LOT OF CUSTOMERS WHO LIKE TO WATER THEIR LAWN. AND SO WE ARE ACTUALLY DOING PROACTIVE GENTLE REMINDERS WHEN WE SEE THAT THEY'RE WATERING OUTSIDE OF THEIR ONE DAY A WEEK OR MULTIPLE TIMES A WEEK. SO OUR CONSERVATION 
          [00:55:02]
TEAM -- AND WE GET BETTER. AS WE GET MORE COMFORTABLE WITH THE AMI DATA, WE'RE WORKING -- ONE OF OUR INITIATIVES IS TO, OBVIOUSLY, BENCHMARK WITH OTHER UTILITIES, OTHER UTILITIES THAT HAVE ALREADY DONE AMI ON A SMALLER SCALE, BUT WE CAN STILL UTILIZE THEIR CUSTOMER ENGAGEMENT TECHNIQUES AND TOOLS. SO THAT'S WHAT WE'RE 
          WORKING ON. >> GALVAN: GOT IT. >> SO WE'LL CONTINUE TO 
          EXPAND IT. >> GALVAN: DO Y'ALL HAVE DATA ON HOW OFTEN THE CONSERVATION PROGRAMS -- OR WHETHER THE REBATES OR OTHER KIND OF FORUMS ARE UTILIZED AFTER CONNECTIONS WITH LATERALS TO THE PEOPLE OR PLUMBERS TO THE PEOPLE OR EVEN PAYMENT PLAN OPTIONS PRESENTED OR WORKED ON WITH CONSERVATION PLANS ARE PRESENTED. DO YOU HAVE A DATA ON THE ADOPTION RATE THAT THEY'RE ACTUALLY UTILIZED? I THINK THEY'RE,S OF COURSE, VERY VALUABLE, I WANT TO MAKE SURE IF WE'RE LOOKING AT RATE INCREASES IN THE VERY NEAR FUTURE, OUR RESIDENTS HAVE AN OPPORTUNITY TO REALLY SEE WHAT THE DIFFERENCE IN COST WOULD BE NOT ONLY THE INCREASE TO THEIR BILL NOW, BUT WHAT WOULD IT BE IF THEY WERE ABLE TO ADOPT DIFFERENT CONSERVATION USES, TO SEE WHAT THE SCALE LOOK LIKE, WHAT WOULD THE DIFFERENCE BE IF THEY HAD THE RATE INCREASE BUT ALSO HAD THE CONSERVATION EFFORTS IN PLACE AT THEIR HOME, WHETHER IT'S THE WATER HEATER, THE IRRIGATION, THE LAWN, WHAT WOULD THAT 
          COST DIFFERENCE LOOK LIKE? >> I CAN TELL YOU, AGAIN, WE'RE 91% COMPLETE WITH EVERYONE, ALL OF OUR CUSTOMERS HAVING THEIR AMI METERS, AND SO JUST ON THAT SCALE, WE'RE ABLE TO TELL YOU THAT WE'VE BASEBALL AB BEEN ABLE TO DOUBLE OUR PLUMBERS TO PEOPLE PRIOR TO AMI. DOUG WILL NEVER TELL US THAT WE CAN'T OVERSPEND THAT BUDGET, SO WE UNDERSTAND OBVIOUSLY THAT'S A BENEFIT TO THE COMMUNITY. WE'RE PROVIDING THAT, AND SO AS WE SEE THAT AMI DATA, WE'RE ABLE OBVIOUSLY TO REACH OUT TO THOSE CUSTOMERS, AND THE MORE THAN WE CAN, AS MANY AS WE CAN, WE ARE HELPING THEM. 
          SO WITH, AGAIN, THAT INCREASED RATE ADJUSTMENT, WE WOULD BE 
          ABLE TO DO EVEN MORE OF THAT. >> GALVAN: GOT IT. 
          DO WE HAVE THE DATA AVAILABLE THOUGH CURRENTLY? 
          >> YES, WE CAN PROVIDE THAT TO YOU. I CAN WORK WITH GA 15 NO 
          VINO AND GET THAT INFORMATION TO YOU. >> GALVAN: I DEFINITELY WANT TO ECHO THE PONT ABOUT THE DATA CENTERS, MICROSOFT IS EXPANDING WITHIN DISTRICT SIX, IT'S UNDERSTANDING THE VALUE THAT THESE CENTERS HAVE, TO OUR COMMUNITY AND, OF COURSE, TO THE GENERAL NEED FOR TECHNOLOGY FOR OUR CITY AND THE USAGE OF IT ALL, WANTED TO MAKE SURE WE'RE DOING EVERYTHING WE CAN TO ALSO REDUCE THE WATER COST, THE ENERGY COST, AND NOT ONLY THOSE PARTICULAR SERVICES -- OR THOSE CENTERS NEED, BUT MAKING SURE THAT ANY KIND OF INCREASED CAPITAL COST, INCREASE COST FOR INFRASTRUCTURE ARE WEIGHED FAIRLY WITHIN THE NEEDS THAT WE HAVE WITH OUR CITY AND RESIDENTS. I KNOW THAT WORK'S BEEN GOING ON, HAPPY TO CONTINUE HAVING CONVERSATIONS WITH UTILITIES AS WELL TO KNOW HOW WE CAN CONTINUE TO DO THAT. I KNOW CITIES ACROSS THE COUNTRY ARE LOOKING AT THAT. DATA CENTERS WITHIN THE CURRENT MARKET NATIONALLY, I WANTED TO MAKE SURE AS WE'RE LOOKING AT SOME OF THESE CAPITAL PLANS. IS THAT WITHIN THIS RATE INCREASE, AT ALL THE CAPITAL PLAN, LOOKING AT THE LOAD OF DATA CENTER 
          EXPANSIONS? >> NO. >> GALVAN: GOT IT. 
          I SEE. THOSE ARE ALL MY QUESTIONS FOR NOW. 
          THANK YOU, MAYOR. >> MAYOR JONES: CHAIR VIAGRAN? 
          >> VIAGRAN: THANK YOU. I WANT TO THANK Y'ALL FOR THE PRESENTATION. 
          I'M GLAD THAT WE'LL BE HEARING FROM Y'ALL. IS IT ONCE A MONTH, IS 
          THAT THE PLAN? >> MONTH. SO I'LL SEE YOU BACK HERE IN DECEMBER THEN, ROBERT. I DO HAVE SOME QUESTIONS THAT I'D LIKE ADDRESSED AND SOME MORE INFORMATION REGARDING THAT. FIRST IS DEFINING THE AGING INFRASTRUCTURE, WHICH I'D LIKE TO KNOW WHERE THOSE 10-YEAR-OLD PIPES ARE, WHERE THOSE DIFFERENT AGED PIPES ARE. 
          I THINK THAT'S GOING TO BE IMPORTANT TO GET. AND WE COULD DO IT BY ZIP CODES OR WE COULD DO IT BY COUNCIL DISTRICTS, WHICHEVER IS EASIER, BUT ULTIMATELY THE GOAL I'D LIKE TO SEE, AND ERIK, AS WE WORK WITH PUBLIC WORKS, IS KIND OF SEE WHERE THAT AGING INFRASTRUCTURE IS ON THOSE MAINLINE PIPES AND IF THEY'RE IN THE SAME AREA WHERE WE SEE THE F STREETS, THE SIDEWALK GAPS AND WHERE WE'RE GOING TO SEE THAT, SO WE CAN GET A BIGGER PICTURE OF HOW WE NEED TO MOVE FORWARD AND BE MORE EFFICIENT WITH OUR DOLLARS. THE OTHER IS THE TECHNOLOGY. I'D LIKE TO SEE WHAT SORT OF NEW TECHNOLOGIES WE'RE USING REGARDING MAKING SURE THAT IF WE HAVE TO REPLACE OR IF WE CAN IMPROVE SOME OF THE STRUCTURES THAT WE HAVE. BECAUSE I THINK TECHNOLOGY IS FINALLY CATCHING UP AND GIVING US THE OPPORTUNITY TO USE SOME OF THOSE WELLS THAT WE THOUGHT WERE EMPTY AND LOOK AT THE -- AT THE -- AT WHAT WE HAVE CURRENTLY AND HOW WE CAN GET INNOVATIVE THERE. 
          SO I'D LIKE TO SEE THAT. THE MAINLINES, THE LEAKS, I THINK IT'S IMPORTANT, EVEN IF WE FIX THE MAINLINE AND, YOU KNOW, PERSONAL EXPERIENCE, EVEN 
          [01:00:04]
IF YOU FIX THE MAINLINE, IF YOU HAVE A HOUSE OVER 100 YEARS OLD, AND THOSE -- THOSE PIPES AREN'T WORKING AND WE HAVE RESIDENTS THAT HAVE A LEAK, WE'RE GOING TO HAVE -- WE'RE GOING TO LOSE WATER. 
          AND WE NEED TO FIND A WAY TO HELP WITH THAT SITUATION. 
          AND ESPECIALLY WITH THE WEATHER CRISIS AND AS THE SOIL BEGINS TO DRY UP AND SHIFT AND HOUSES SHIFT, WE'RE SEEING PIPES THAT WE THOUGHT WERE WORKING, NOT WORKING AND THINGS MOVE. SO I THINK THAT THAT'S REALLY IMPORTANT. AND THAT'S -- HELP AS WE -- AS WE WANT TO MAINTAIN OLDER HOMES AND AS WE CONTINUE TO KNOW THAT THE MOST AFFORDABLE HOUSING IS EXISTING HOUSING, HOW DO WE MAKE SURE THAT IT'S NOT WITH AGED PIPES THAT ARE CAUSING US TO LOSE A LOT OF WATER. SO LOOK FORWARD TO THAT, SEEING THAT. 
          AND THEN THE OTHER IS, I'D LIKE TO SEE MORE INFORMATION REGARDING THE PRESSURE ZONES AND WHERE THEY ARE LOCATED. I'D REALLY LIKE TO BE READY, AS WE -- AS WE MOVE IN AND WATER IS GOING TO BE IMPORTANT AS WE MOVE INTO DIFFERENT PROJECTS AND HOW PEOPLE WANT TO INVEST, WHAT WE HAVE THERE REGARDING THE PRESSURE ZONES AND WHERE WE COULD COLLABORATE WITH PUBLIC DOLLARS AND PRIVATE DOLLARS TO KIND OF GET INNOVATIVE FOR THAT. ONE THING WE HAD -- THE SISTER CITIES CONFERENCE I GUESS, A YEAR AND A HALF AGO, AND THEY TALKED ABOUT TOILET TO TAP, WHICH WAS KIND OF SOMETHING WHERE I WAS LIKE, WHAT? AND THEN PEOPLE ARE LIKE, NO, THEY'RE DOING IT. IT'S HAPPENING. 
          AND SO WHERE CAN WE IN THE TECHNOLOGY AND IN WHAT WE DO IS MOVE FORWARD TO THAT, TO THAT WHERE IT'S POSSIBLE. AND THEN, OF COURSE, WHAT SAWS HAS DONE WITH THE PURPLE PIPES, I CAN'T GO ON ENOUGH. 
          THE ONE THING I WANT US TO TAKE AWAY WITH, EVEN THOUGH THERE'S ROOM FOR IMPROVEMENT, IS THAT THIS CITY IS A CITY THAT CONSERVES. 
          THIS CITY IS A CITY THAT UNDERSTANDS THE VALUE OF WATER. 
          SO I THINK WHAT WE HAVE IN THIS NEXT ITERATION AS WE TALK ABOUT THIS WITH THE EIGHT -- HOW WE'RE GOING TO INVEST IN THIS AGING INFRASTRUCTURE, IN HOMES THAT ARE 100 YEARS OLD, IS IT HOW CAN WE LEAD AND BE AN EXAMPLE FOR THE REST OF THE STATE OF TEXAS AND THE REST OF THIS NATION, BECAUSE I THINK WE DO THIS. I HEAR FROM OTHER STATES THAT COME HERE ALL THE TIME THAT WE'RE LIKE, Y'ALL DO AN EDWARDS AQUIFER REPORT EVERY DAY? AND I'M LIKE, YEAH, BECAUSE WE KNOW WE CAN'T GET THINGS DONE WITHOUT WATER. SO I'D REALLY LIKE TO SEE THAT.  AND THEN ON THE SECOND PART, WHEN WE TALK ABOUT THE BUDGET PROCESS, I ALWAYS -- I'M ALWAYS INTERESTED IN WHEN Y'ALL BRING THE INFORMATION FROM OTHER CITIES, HOW MANY OF THOSE CITIES -- AND THEY HAVE A MUNICIPAL MLY-OWNED WATER LIKE WE DO? THEY OWN THE WATER 
          SOURCE. >> THEY ARE ALL MUNICIPALLY OWNED. 
          EL PASO, FOR EXAMPLE, IS SOMEWHAT LIKE SAWS, THEY HAVE A SEPARATE BOARD. 
          THEY'RE NOT A CITY DEPARTMENT. ALMOST ALL OF THE OTHER UTILITIES HAVE THEIR WATER SYSTEM AS A -- AS A DEPARTMENT OF THE CITY. 
          >> VIAGRAN: OKAY. >> UNLIKE SAWS, THAT HAS ITS OWN BOARD. 
          >> VIAGRAN: YEAH. AND I THINK FOR US IN PARTICULAR, WE NEED TO DISTINGUISH IN TERMS OF THAT, IS THE NUMBER OF -- SO -- AND I'M INTERESTED IN DALLAS IN PARTICULAR. IS IT JUST DALLAS PROPER OR IS IT 
          DALLAS/FORT WORTH, PLANO? >> ONE REASON DALLAS HAS SUCH A LOW WATER RATE IS ONE OF THEIR CUSTOMERS, FOR EXAMPLE, IS THE CITY OF PLANO. ANOTHER CUSTOMER IS THE CITY OF RICHARDSON. 
          >> VIAGRAN: OKAY. >> SO THEY DO A WHOLE LOT OF WHOLESALE, AND THAT 
          ALLOWS THEM TO HAVE LOW RATES. >> VIAGRAN: OKAY. 
          BECAUSE -- >> AND TO THEIR CREDIT, THEY DID PLAN A LONG TIME AGO IN THE '50S AND '60S, WATER RESERVOIRS, LAKE RESERVOIRS IN EAST TEXAS 
          THAT THEY OWN. >> VIAGRAN: OKAY. AND THAT -- THAT WAS THE ONLY THING, I WAS LIKE HOW CAN -- HOW CAN DALLAS WITH CHEAPER THAN US? 
          >> AND YOU NOTICE, THEY'RE NOT. WE ARE CHEAPER THAN THEY 
          ARE. >> VIAGRAN: ARE WE? >> YEAH. 
          AS OF TODAY. BECAUSE THEIR RATE INCREASE WENT INTO EFFECT 
          TODAY. >> VIAGRAN: OH, ALL RIGHT. 
          JUST WANT TO MAKE SURE. SO -- AND THE OTHER ASPECT THAT I'D LIKE SOME INFORMATION ABOUT IS WHEN WE TALK SEWER LINES IN PARTICULAR IS IN THE SOUTHERN SECTOR AND THE SOUTHEAST SIDE IS HOW MANY ARE STILL IN -- HOW MANY STILL ARE IN -- DON'T HAVE THE SEWAGE INFRASTRUCTURE AND ARE ON 
          [01:05:06]
SEPTIC TANKS? I THINK WE NEED TO GET A GRASP OF THAT, BECAUSE WHEN WE TALK ABOUT GROWTH COMING TO SAN ANTONIO, A LOT OF IT'S COMING FROM -- TO THE SOUTHWEST, SOUTH AND SOUTHEAST SIDE OF TOWN, AND WE NEED TO UNDERSTAND WHAT THAT IS. AND I'D LIKE TO UNDERSTAND WHERE THE PRESSURE ZONES ARE THERE. AND THEN THE OTHER ASPECT, BECAUSE I DIDN'T SEE IT ON HERE, IS -- AND, ERIK, MAYBE YOU CAN HELP WITH THIS, THE CONVERSATION WE KEEP ON HAVING ABOUT THE CHILLED WATER PLANT RELOCATION. I -- I THOUGHT THAT WAS TIED TO HOW WE DO THE PHASES OF OUR SPORTS AND ENTERTAINMENT DISTRICT. IF THIS IS ALREADY SOMETHING THAT'S GOING TO DO -- WE KNOW IS COMING, I'D LIKE TO GET A TIMELINE ON THAT, IF THIS IS GENERATIONAL AND WE NEED TO PLAN FOR COUNCILS -- MANY COUNCILS AFTER THAT. BECAUSE WE'VE GOT FOUR YEARS HERE, AND THEN WHAT THAT'S GOING TO LOOK LIKE. 
          SO IF WE COULD GET A TIMELINE ON THAT, JUST SO AS WE MOVE ECONOMICALLY -- THROUGH ECONOMIC WORKFORCE AND DEVELOPMENT, AS WE TALK ABOUT WHAT'S COMING IN THE FUTURE, I WOULD LOVE TO SEE MORE ENVIRONMENTAL JOBS AND MORE JOBS REGARDING HOW THE TECHNOLOGY IS IMPLEMENTED WITHIN OUR PUBLIC UTILITIES, SPECIFICALLY WATER, BECAUSE I THINK WE'VE DONE SUCH AN AMAZING JOB SO FAR IN UNDERSTANDING WHAT WE HAVE AND WHAT WE NEED TO PROTECT, THAT WE CAN GET INTO PARTNERSHIP WITH OUR UNIVERSITIES. BUT I WOULD LIKE A MORE FIRM TIMELINE, BECAUSE THIS WAS 2026 TO 2030, SO I'D LIKE A MORE FIRM TIMELINE OF WHEN WE THINK THIS IS GOING TO HAPPEN. BECAUSE THAT -- THAT WILL HELP AS WE -- AS WE GO OUT IN THE FUTURE AND LOOK FOR BUSINESSES AND THINGS LIKE THAT. 
          >> WALSH: SO -- WELL, LET ME JUMP IN REAL QUICK. I APPRECIATE THE 
          QUESTION. I THINK -- I THINK -- >> MAYOR JONES: PLEASE 
          STOP THE TIME. >> WALSH: YEAH, IF YOU WE -- A LOT OF THE FOLKS HAVE BEEN ON THE NEAR TERM PART OF THAT DISTRICT, THE CHILLED WATER SYSTEM AND THE FEASIBILITY THAT JAIME AND ROBERT MENTIONED IS -- IS REALLY DESIGNED NOT JUST TO GET A NUMBER, BUT TO IDENTIFY HOW THAT SYSTEM CAN EXPAND. AND YOU ALL SAW IN DOUG'S PRESENTATION, IT'S AN ENCAPSULATED SYSTEM WITHIN -- WITHIN SAWS. IT'S ANNUAL MAINTENANCE, IT'S REPAIR. IF IT MOVES, IF IT EXPANDS, IS BOR BOURNEE BY ITS CURRENT CUSTOMER WHICH IS PART OF THE 70%. 
          SO PART OF THE FEASIBILITY IS NOT JUST ABOUT THE CAPITAL INFRASTRUCTURE NEED, BUT IS THERE AN OPPORTUNITY FOR SAWS TO EXPAND THAT SYSTEM AND GROW IT? IT IS PROBABLY THE MOST EFFICIENT WAY TO COOL LARGE BUILDINGS, AND AS THERE IS PLANNED OR CAN THEY CAPITALIZE UPON IT? THE FEASIBILITY IS MORE THAN JUST HOW MUCH DOES IT COST, IT'S HOW MUCH DOES IT COST, DOES IT MAKE SENSE TO GROW IT? WHO PAYS THE MAJORITY OF IT? YEAH, WHO PAYS THE MAJORITY OF IT? AND THAT'S GOING TO BE BORN BY CUSTOMERS OF WHICH THE CITY IS CURRENTLY 70%. IT'S IN OUR BEST INTEREST, JUST GENERALLY SPEAKING, INDEPENDENT OF ANY SORT OF DOWNTOWN TALK THAT IF THEY CAN HAVE MORE CUSTOMERS ON THAT SYSTEM, THEN WE WILL SPEND LESS MONEY. 
          AND SO IT IS A MUCH LARGER CONVERSATION, AND WE'LL WORK WITH SAWS AS -- WE'VE BEEN PLUGGED IN ON THE FEASIBILITY REVIEW AND I SUSPECT THAT'S A WHOLE OTHER CONVERSATION WITH THE COUNCIL AND WE'LL MAKE SURE WE GET IN FRONT OF YOU GUYS. 
          >> VIAGRAN: THANK YOU, ERIK. ROBERT -- AND YOUR TEAM KNOWS THIS. I HAVE BEEN WORKING WITH TEXAS A&M COLLEGE STATION, TEXAS A&M SAN ANTONIO ON RESILIENCY AND HOW WE MOVE FORWARD IN THIS TECHNOLOGY AND THE OPPORTUNITY TO TALK TO RESEARCHERS. CAMPUSES ALONG THE STATE OF TEXAS -- AND GLOBALLY THEY'RE GOING OUT THERE. IF WE HAVE AN IDEA OF WHAT WE'RE DOING -- AND WE COULD GET THEM TO KIND OF GIVE US THAT INPUT AND RESEARCH HERE. IT'S GOING TO MAKE IT THAT MUCH EASIER. 
          THEY HAVE SEEN THAT SAN ANTONIO IS A MICROCOSM FOR GLOBALLY WHAT IS GOING ON. 
          WE NEED TO MAKE SURE THEY UNDERSTAND WHAT'S COMING NEXT SO THAT THEY CAN DO THAT NOW WHEN THEY'RE OVERSEAS BUILDING IN ARID AREAS, THAT THEY'RE LIKE THIS IS WHAT WE COULD BRING BACK TO SAN ANTONIO IF THIS WAS RIGHT. 
          I REALLY WANT TO MAKE SURE THAT -- AND YOUR TEAM HAS BEEN GREAT ABOUT COMING EVERY YEAR TO THE SYMPOSIUM AND SHARING. I JUST REALLY WANT TO CONTINUE WITH THAT BECAUSE I THINK WE HAVE OPPORTUNITIES, AS I MENTIONED BEFORE, TO LEAD AND TO BE THE EXAMPLE. AND I DON'T WANT TO MISS THEM BECAUSE WE'RE NOT 
          [01:10:03]
THINKING -- WE DON'T HAVE A TIMELINE YET OR WE'RE NOT COMMUNICATING WITH EACH OTHER ABOUT WHAT'S TO COME. I JUST ENCOURAGE THE SAWS TEAM AND THE BOARD TO 
          CONTINUE TO DO THAT. >> PUENTE: COUNCILWOMAN VIAGRAN, YOU MENTIONED A LOT. I DON'T THINK THERE WAS A QUESTION IN THERE BUT YOU TALKED ABOUT ALL THE THINGS THAT YOU WANT TO KNOW THAT YOU WANT US TO ADDRESS. 
          I GUARANTEE YOU MY STAFF IS GIDDY BECAUSE THEY ARE EXCITED. 
          THEY WANT TO TELL THE STORY OF WHAT WE DO, WHETHER IT'S PRESSURE ZONES, SEWER LINE INFRASTRUCTURE, NOT ONLY IN YOUR DISTRICT BUT IN EVERYBODY'S DISTRICT. 
          THE AGE OF OUR INFRASTRUCTURE, THE MATERIAL WE HAVE. 
          ALL THAT INFORMATION. I THINK YOU HAVE SET THE AGENDA FOR 2026 FOR THE WHOLE YEAR. BUT OBVIOUSLY WHATEVER THIS COUNCIL WANTS AS TO THE NEXT TIME WE'RE IN FRONT OF YOU, WE WILL BE READY SO THERE'S GOOD COMMUNICATION ON THOSE. 
          ON COOLING, I CANNOT AGREE WITH ERIK MORE. WE MEET WITH HIS STAFF, WITH THE OFFICE OF PUBLIC UTILITIES EVERY OTHER WEEK TO TALK ABOUT DISTRICT COOLING AND WHEN IT'S GOING TO MOVE, WHAT'S GOING TO HAPPEN. 
          WHETHER PROJECT MARVEL HAPPENS OR NOT -- WHETHER THE ARENA HAPPENS OR NOT THERE'S GOING TO BE A LOT OF DEVELOPMENT IN THE DOWNTOWN AREA. 
          AND IDEALLY -- AND I HAVE TALKED TO ERIK ABOUT THIS -- IS THAT COUNCIL WOULD PASS A RESOLUTION THAT IF YOU'RE GOING TO DEVELOP IN THIS AREA, YOU HAVE TO BE A CUSTOMER OF DISTRICT COOLING. THAT DRIVES THE COST DOWN. 
          IT SHARES THE LOAD WITH EVERYBODY. IF THERE'S GOING TO BE THAT MUCH DEVELOPMENT THIS IS A WAY FOR THE EXPANSION TO PAY FOR THE MOVE. 
          >> VIAGRAN: THANK YOU. THANK YOU FOR THE PRESENTATION. 
          I LOOK FORWARD TO IT. WHENEVER Y'ALL WANT TO DISCUSS WHAT MY PRIORITIES ARE -- I KNOW THAT WAS A LOT BUT YOU GUYS GAVE US A LOT OF INFORMATION. 
          I LOOK FORWARD TO SHARING THAT WITH Y'ALL. THANK YOU. 
          >> MAYOR JONES: CHAIR MCKEE-RODRIGUEZ. >> MCKEE-RODRIGUEZ: THANK YOU. THANK YOU SO MUCH FOR THE PRESENTATION. 
          I'LL ASK -- MY FIRST QUESTION IS RELATED TO THE FOUNDATIONAL GOAL OF EQUITY AND WHERE DOLLARS ARE SPENT, PREVENTING WORKING-CLASS AREAS FROM BEING LAST IN UPGRADES. I FEEL LIKE I MAY HAVE HEARD SOME OF THIS WITH SOME OF THE QUESTIONS. BUT HOW WILL SAWS ENSURE THAT WATER MAIN REPLACEMENTS AND LEAK DETECTION PRIORITIZE AREAS ARE RELATIVELY NEWER BECAUSE THEY GREW JUST RECENTLY AND SO THAT INFRASTRUCTURE IS FINE. IT'S NOT IN THAT CATEGORY OF AGED INFRASTRUCTURE. 
          AND SO WE DO HAVE DATA THAT SHOWS THE AGE OF ALL THE PIPES IN OUR SYSTEM. 
          THEIR SIZE, THEIR MATERIALS, EVERYTHING LIKE THAT. THE HISTORICALLY OLDER NEIGHBORHOODS, LIKE THE EASTSIDE OR THE WESTSIDE, DO NOT NECESSARILY HAVE THE OLDEST INFRASTRUCTURE BECAUSE THAT WAS ALREADY REPLACED IN THE LAST 10, 15, 20 YEARS. THERE'S OTHER OLDER INFRASTRUCTURE. 
          BUT WHAT WE DO IS LOOK AT THE FAILURE RATE OF THE WATER LINES. 
          WE LOOK AT THE FAILURE RATE, THE PREDICTABILITY OF THE FAILURE RATE, THE SOIL CONDITIONS THAT THOSE PIPES ARE IN, WHETHER THEY'RE CLAY SOIL OR DIFFERENT KINDS OF SOILS. THAT IS WHAT DRIVES OUR REPLACEMENT PROGRAM. 
          IT IS NOT AS SOPHISTICATED -- WITH ALL DUE RESPECT, IT'S NOT DESIGNED TO REPLACE SEWER LINES, WATER LINES THAT JUST HAPPEN TO BE IN OLDER NEIGHBORHOODS. AGAIN, THOSE PIPES MAY NOT BE THE OLDEST OR THE MOST 
          LIKELY TO FAIL IN OUR SYS SYSTEM. >> MCKEE-RODRIGUEZ: THANK YOU. I THINK YOU TOUCHED ON THIS AND THAT EQUITY IS ABOUT WHERE NEED IS AND SOMETIMES THAT ISN'T IN THE OLDEST NEIGHBORHOODS BUT IT'S WHERE THOSE CONCERNS AND LEAKS AND POOR INFRASTRUCTURE. THANK YOU. 
          I'M HEARING THAT YOU'RE GOING TO BE RELYING ON DATA. >> PUENTE: I'M FROM HIGHLAND PARK, NOT DALLAS. SAN ANTONIO. SO OLDER NEIGHBORHOOD, 
          HIGHLANDS HIGH SCHOOL. I KNOW WHAT IT'S LIKE. >> MCKEE-RODRIGUEZ: ALSO AFFORDABILITY FOR FAMILIES WHO SPENT A DISPROPORTIONATE SHARE OF INCOME ON UTILITIES. BEFORE WE IMPLEMENT FUTURE RATE INCREASES, WHAT PROGRAMS ARE BEING DESIGNED OR IMPROVED UPON TO PROTECT COST-BURDENED FAMILIES SUCH AS TIERED RATES, LOW-INCOME ASSISTANCE, OR SHUTOFF PROTECTIONS? 
          >> PUENTE: WE HAVE TIERED RATES. THE FIRST RATE IS WHERE THE WATER IS ALMOST FREE. YOU DO PAY FOR THE INFRASTRUCTURE. 
          THE RIGHT TO HAVE THAT WATER. THE SERVICE CONNECTION TO HAVE THAT WATER. THE FIRST 2,000 GALLONS ARE ESSENTIALLY ALMOST FREE. 
          AND 2,000 GALLONS A MONTH IS FRANKLY A LOT OF WATER. WE HAVE CALCULATED TO MEAN 
          [01:15:03]
IT'S NOT A LIMITED AMOUNT OF SHOWERS. IT'S NOT A 30-SECOND SHOWER. 
          IT'S NOT ONE LOAD OF WATER A WEEK. IT'S MULTIPLE LOADS OF LAUNDRY. IT'S FOR A FAMILY OF FOUR. THAT IS A VERY COST-EFFECTIVE AMOUNT OF WATER. SO, FOR EXAMPLE, IF YOU'RE ELDERLY AND JUST TWO INDIVIDUALS IN THAT HOME, YOU HARDLY WILL EVER GO OVER 2,000 GALLONS A MONTH. BUT THE NEXT TIER AND THE NEXT TIER AND THE NEXT STARTS GETTING MORE EXPENSIVE. IF YOU GET TO 20,000 GALLONS PER MONTH, THAT MEANS YOU'RE IRRIGATES A LOT OUTDOORS AND YOU'RE GOING TO PAY FOR THAT. IF YOU LIKE A LUSH LAWN AND YOU'RE WILLING TO PAY FOR IT, WE'RE WILLING TO PROVIDE IT FOR YOU THINK ARE SECOND TO NONE IN THE NATION. WHATEVER CIRCUMSTANCES YOU MAY BE IN, WHETHER IT'S A CHRONIC SITUATION WHERE YOU'RE JUST A LOW-INCOME INDIVIDUAL AND GENERATIONAL POVERTY IS A BIG ISSUE HERE, WE HAVE A PERMANENT SITUATION WHERE IF YOU QUALIFY WE WILL, ON A MONTHLY BASIS, REDUCE YOUR BILL. IF YOU'RE GOING THROUGH A DIVORCE, A ONE-TIME LOSS OF JOB, MEDICAL BILLS, OUT OF THE ORDINARY AND YOU JUST NEED THAT HELP FOR TWO, THREE, OR FOUR MONTHS, WE HAVE A PROGRAM FOR THAT. IF YOU'RE ELDERLY, YOU DON'T GET CHARGED, FOR EXAMPLE, LATE FEES. DISABLED, SAME THING. 
          ALL KINDS OF PROGRAMS THAT WE HAVE. I THINK IT WAS 52 TOUCH POINTS? 15 TOUCH POINTS THAT WHATEVER CIRCUMSTANCE YOU'RE IN, WE WILL HELP YOU. IT'S CALLED THE UPLIFT PROGRAM. 
          IF YOU LOOK AT A WATER BILL, DEPENDING ON HOW MUCH THE -- THE HIGHER YOUR WATER BILL IS, THE HIGHER THE AMOUNT YOU PAY ON YOUR UPLIFT FEE. IT'S A PROGRAM FEE. 
          THAT MONEY GOES INTO THE PROGRAMS THAT WE HELP INDIVIDUALS WITH. 
          SO IF YOU'RE IN A SITUATION, AS COUNCILWOMAN VIAGRAN MENTIONED AND COUNCILMAN GALVAN, THAT YOUR OWN PIPE BROKE, YOUR OWN SEWER LINE BROKE, WE HAVE PROGRAMS THAT HELP YOU PAY FOR THAT. AS A MATTER OF FACT, ON OUR NEXT AGENDA IN OCTOBER, WE ARE RENEWING OUR CONTRACTS WITH PRIVATE PLUMBERS AND THEIR JOB IS FOR US TO SEND THEM TO HOMES WHERE THERE IS A LINE BREAK INSIDE THE HOME OR IN THE SERVICE AREA AND REPAIR THAT. IF THEY QUALIFY FOR THESE PROGRAMS. 
          >> MCKEE-RODRIGUEZ: THANK YOU. THAT WAS PRETTY COMPREHENSIVE AND IT HIT MY NEXT QUESTION. I HAVE THREE MORE FOR YOU. 
          THIS NEXT ONE IS A LITTLE BIT MORE PHILOSOPHICAL. WE ALSO HAVE A RESPONSIBILITY TO PREVENT PUBLIC FUNDS FROM DISPROPORTIONATELY BENEFITING COMMERCIAL INTERESTS OVER EVERYDAY RESIDENTS. 
          HOW ARE YOU THINKING ABOUT OR HOW ARE RATEPAYER DOLLARS FOR DISTRICT COOLING DOWNTOWN ENSURING A RETURN FOR THE BROADER COMMUNITY RATHER THAN SUBSIDIZING 
          CORPORATE AND GOVERNMENTAL CUSTOMERS? >> PUENTE: THE SUBSIDIZING WAS FOR THE CITY OF SAN ANTONIO AND THE CITY HAS NOT RAISED THOSE RATES FOR 20 YEARS. I THINK IT WAS THREE YEARS AGO WE DID GET A FIVE-YEAR INCREASE ON THE DISTRICT COOLING. OUR PHILOSOPHY IS GROWTH PACE FOR ITSELF. IF YOU WANT TO LOOK AT A DATA CENTER AND IT'S FAR AWAY FROM OUR INFRASTRUCTURE, YOU HAVE TO PAY FOR THAT INFRASTRUCTURE TO CONNECT TO OUR SYSTEM. ALL THESE NEW HOUSING DEVELOPMENTS, THE DEVELOPER IS MANDATED TO PAY FOR ALL THAT INFRASTRUCTURE. ALL OF THE PIPES. 
          ALL OF THE SEWER PIPES. THEY HAVE TO BUILD -- AND THEY BUILD IT TO OUR SPECIFICATIONS, OUR MATERIAL SPECIFICATIONS. WE INSPECT THE INSTALLATION. 
          SO WHEN THAT HOUSING DEVELOPMENT IS BUILT, THEY HAVE PAID FOR THAT INFRASTRUCTURE AND THEN IT BECOMES OUR INFRASTRUCTURE. BECAUSE THEY DON'T WANT TO RUN A WATER SYSTEM. AND THEN WE OBVIOUSLY HAVE TO MAINTAIN IT. 
          SO GROWTH PAYS FOR ITSELF. WE HAVE JUST -- ANOTHER BIG EXAMPLE IS WHEN YOU'RE TALKING ABOUT COMMERCIAL AND RESIDENTIAL. SAN ANTONIO WAS GROWING AT SUCH A FAST CLIP THAT IN 2023 WE CAME TO THIS COUNCIL ASKING THIS COUNCIL TO LOWER OUR RESIDENTIAL RATES BECAUSE WE HAD SO MANY RESIDENTIAL CUSTOMERS. 
          NOT NECESSARILY BIG BUSINESSES BUT RESIDENTIAL CUSTOMERS. 
          SO ESSENTIALLY WE WERE GETTING A LOT OF RESIDENTIAL INCOME AND SO THEY WERE -- ESSENTIALLY IT WAS BEING SUBSIDIZED BY COMMERCIAL. Y'ALL LOWERED OUR RATES 8% AND THAT WAS A BENEFIT TO THE HOMEOWNER. SO WE HAVE A HISTORY OF 
          DOING THE RIGHT THING FOR OUR RESIDENTIAL CUSTOMERS. >> MCKEE-RODRIGUEZ: GOTCHA. JUST TWO MORE QUESTIONS. I'LL START BY SAYING I WOULD REALLY ENCOURAGE SAWS TO EXHAUST EFFICIENCY AND ENVIRONMENTAL STEWARDSHIP BEFORE RAISING BILLS. ANY RATE INCREASES, ESPECIALLY AS WE MOVE 
          [01:20:03]
FORWARD AND IN THIS CURRENT ECONOMIC CLIMATE, I THINK IT'S -- ANY RATE INCREASE IS GOING TO BE A HIGH CONCERN FOR US. I KNOW YOU HAD MENTIONED EARLIER A NUMBER OF CAPITAL IMPROVEMENTS OVER THE NEXT SEVERAL YEARS AS WELL AS SOME ALREADY NOTICEABLE IMPROVEMENTS TO OUTCOMES. WHAT INVESTMENTS ARE BEING MADE TO REDUCE WATER LOSS AND EXTEND CONSERVATION EFFORTS BEFORE DEFAULTING TO 
          RATE INCREASES? >> PUENTE: BEFORE WHAT? >> MCKEE-RODRIGUEZ: BEFORE 
          DEFAULTING TO RATE INCREASES. >> PUENTE: IN 2023 WE HAD A BIG, HUGE SPIKE. IT WAS A VERY HOT SUMMER. VERY LITTLE RAINFALL. 
          A LOT OF PRODUCTION OF WATER. AND WE HIT OUR PEAK AS FAR AS LOST WATER, BROKEN PIPES. WE HIRED MORE CREWS. YOU SEE OUR EMPLOYEE COUNT WENT UP AND THAT'S BECAUSE WE HIRED MORE BOOTS ON THE GROUND. 
          MORE BOOTS ON THE GROUND TO FIX LEAKS. MORE BOOTS ON THE GROUND TO FIND LEAKS. PEOPLE LISTENED FOR PIPES. SO WE MADE THAT EXPENDITURES ALREADY WITHOUT A RATE INCREASE TO TACKLE THIS PROBLEM. 
          AS YOU SAW IN THE GRAPH, THAT LOST WATER NUMBER IS GOING DOWN MONTHLY AND 
          YEARLY. >> MCKEE-RODRIGUEZ: GOTCHA. 
          ESSENTIALLY WHAT I'M HEARING FROM THAT IS THAT WE'VE EXHAUSTED THOSE EFFORTS AND 
          A RATE INCREASE IS NOW AT THIS POINT -- >> PUENTE: NO. 
          THOSE EFFORTS WILL CONTINUE FOREVER. IN OTHER WORDS, WE ALWAYS HAVE TO DRIVE DOWN THAT RESPONSE TIME WHEN WE GET A NOTICE OF A LEAK. 
          WE ALWAYS HAVE TO LOOK FOR LEAKS BEFORE THEY SURFACE OUT OF THE GROUND. 
          AND WE ALWAYS HAVE TO LOOK AT OUR DATA TO KNOW WHAT PIPES ARE LIKELY TO BREAK. 
          AND SO THAT STEWARDSHIP IS THERE TO TAKE CARE OF THOSE THINGS. 
          WHICH DRIVING THE RATE INCREASE FOR THIS COMING YEAR IS OUR WASTEWATER TREATMENT PLANTS. THEY ARE OVER 40 YEARS OLD. LIKE YOUR HOUSE, EVENTUALLY YOU HAVE TO REPLACE THE ROOF AND MAKE UPGRADES. THAT'S WHERE WE ARE WITH OUR WASTEWATER TREATMENT PLANTS. WE HAVE TO MAKE MAJOR UPGRADES. 
          >> MCKEE-RODRIGUEZ: I THINK I HAVE ONE MORE AFTER THIS BUT WE'LL SEE. 
          LASTLY, I THINK ONE OF OUR HIGHEST-PRIORITY NEEDS IS ENSURING VULNERABLE COMMUNITIES ARE PROTECTED AS WATER SCARCITY WORSENS. HOW WILL SAWS INCORPORATE 
          CLIMATE RESILIENCE INTO ITS BUDGET? >> PUENTE: WE HAVE OUR WATER MANAGEMENT PLAN JUST ADOPTED BY OUR BOARD. IT'S UPDATED EVERY FIVE YEARS. WE ADDRESSED HOW WE RESPOND TO CLIMATE CHANGE IN THAT DOCUMENT. WHAT WE KNOW IS WEATHER EVENTS ARE MORE CONCENTRATED, WHETHER IT'S A DROUGHT OR RAIN , THEY JUST COME QUICKER, MORE OFTEN. 
          NOT SPREAD OUT THE WAY WE WOULD LIKE IT. AND SO THE PERFECT SOLUTION TO THAT IS WHEN IT RAINS A LOT AND OUR CUSTOMERS DON'T NEED THAT WATER BECAUSE IT'S COMING FREE FROM THE SKY, WE STORE IT. WE PUT IT IN THE UNDERGROUND STORAGE AQUIFER IN SOUTHERN BEXAR COUNTY. SO THAT'S A GREAT WAY OF SHOWING STEWARDSHIP FOR THE ENVIRONMENT AND MEETING OUR SUPPLY DEMAND FROM OUR 
          COMMUNITY. >> MCKEE-RODRIGUEZ: GOTCHA. 
          GOTCHA. RECORD DEMAND. NEXT QUESTION I HAVE -- THIS ONE IS THE LAST ONE, FOR REAL. WE HAVE SEEN STORIES AND NEWS HAPPENING IN OTHER COMMUNITIES, LARGELY POOR COMMUNITIES OF COLOR THAT ARE BEING IMPACTED NEGATIVELY BY DATA CENTERS, AI, ALL OF THOSE THINGS. 
          AS WE SEE -- THE CITY IS GOING TO BE MOVING TOWARDS UTILIZING -- IS USING AI A LITTLE BIT MORE. YOU MENTIONED USING AI. LARGE ORGANIZATIONS, USAA, IT'S BECOMING A HUGE THING RIGHT NOW AND I'M WONDERING HOW DO WE PREVENT WHAT'S HAPPENING IN OTHER COMMUNITIES FROM HAPPENING HERE? 
          >> PUENTE: I THINK ONE WAY IS THESE OTHER COMMUNITIES -- AND THEY TEND TO BE LOCATED IN CENTRAL TEXAS -- THEY ARE ATTRACTING THESE DATA CENTERS, THESE JOBS WITHOUT KNOWING HOW MUCH POWER IS GOING TO BE AVAILABLE AND WHETHER OR NOT THAT WATER IS GOING TO BE AVAILABLE. A LOT OF THEM ARE IN THE PLANNING STAGES. DO I CONTINUE? AND SO HERE IN SAN ANTONIO, WE'RE BEYOND THAT. WE KNOW WE HAVE A SET WATER SUPPLY SO IF YOU COME IN AND YOU NEED THAT KIND OF WATER, WE CAN PROVIDE IT. WE DO HAVE THOSE RESOURCES. 
          WE DO UNDERSTAND THAT THIS COMMUNITY -- BY THIS COMMUNITY, I MEAN OUR COUNCIL, OUR SISTER AGENCY, CPS, SAWS, WE'RE NOT THAT ENTHUSED ABOUT DATA CENTERS. 
          THEY'RE NOT THE GREATEST TYPE OF EMPLOYER. THEY USE A LOT OF WATER, A LOT OF POWER SO THEY TEND NOT TO COME TO SAN ANTONIO. THEY TEND TO GO TO CENTRAL TEXAS WHERE THERE'S LESS REGULATION. THEY'RE NOT NECESSARILY IN 
          THE CITY, THEY'RE IN THE COUNTY. >> MCKEE-RODRIGUEZ: THANK 
          [01:25:03]
          YOU, MAYOR. >> MAYOR JONES: CHAIR KAUR. 
          >> KAUR: THANK YOU, MAYOR. THANK YOU SO MUCH FOR THIS PRESENTATION, MR. PUENTE. 
          >> PUENTE: SURE. >> KAUR: I WAS INTERESTED IN SEEING HOW MANY OF US ARE GOING TO COMMENT ON THE SLIDE THAT SHOWS THE COMPARISONS ACROSS CITIES. 
          I THINK THAT'S ALWAYS SOMETHING THAT WE FIND VERY INTERESTING AND ARE VERY 
          INTRIGUED ABOUT. CAN YOU BRING THAT SLIDE UP? >> PUENTE: THERE WAS TWO OF THEM. ONE WAS THE BAR GRAPH OF ALL THE CITIES AND THE OTHER ONE 
          WITH THEIR RATES OVER THE LAST FIVE YEARS. >> KAUR: CAN YOU SHOW THE RATES OVER THE 2020 TO 2025 ONE, IS WHAT I WAS LOOKING AT. 
          I THINK IT WAS SLIDE 21. >> PUENTE: SLIDE 21. >> KAUR: I KNOW YOU TALKED ABOUT THIS A LITTLE BIT WHEN COUNCILWOMAN VIAGRAN WAS SPEAKING. 
          YOU MENTIONED THAT DALLAS IS LOWER. IS THAT COMBINED WATER AND 
          SEWAGE IS WHAT YOU WERE SAYING? >> PUENTE: TOP IS WATER. 
          BOTTOM IS SEWER. >> KAUR: SO YOU'RE SAYING THE COMBINED RATE, WE ARE 
          LOWER THAN THEM. >> PUENTE: YES. >> KAUR: I'M CURIOUS THE DIFFERENCES, THOUGH, WITH HOUSTON AND THE DIFFERENCE IN WATER. 
          HAVE YOU GUYS DUG INTO WHY IT'S SO EXPENSIVE IN SOME OF THE OTHER CITIES AND WHAT 
          THE DIFFERENCES IN PROGRAMS ARE? >> PUENTE: IN HOUSTON? HOUSTON, FOR EXAMPLE, THEY HAVE A LOT OF MUDS. SO THAT HIGH-GROWTH AREA IS HANDLED THROUGH MUDS. ANOTHER REASON IS HOUSTON IS FLAT AND SO THEIR SEWER SYSTEM HAS TO MOVE SEWAGE DIFFERENTLY THAN WHAT WE CAN MOVE SEWAGE. 
          WE HAVE GRAVITY HELPING US THAT MOVES SEWAGE FROM NORTHWEST TO SOUTHEAST. 
          THAT'S ANOTHER REASON. ANOTHER REASON IS THEY HAVE TO TREAT THEIR WATER. 
          THEIR WATER IS SURFACE WATER FROM -- MOSTLY FROM THE TRINITY RIVER AND THEY HAVE 
          TO SEND IT THROUGH A TREATMENT PLANT. >> KAUR: IT'S NOT REALLY 
          AN APPLES TO APPLES COMPARISON. >> PUENTE: NO. 
          >> KAUR: WHICH CITY WOULD BE CLOSEST TO US IN TERMS OF TOPOGRAPHY, CHALLENGES THAT 
          WE FACE, STRUCTURE? >> PUENTE: ALL OF THOSE CITIES ARE SURFACE-WATER CITIES, NOT GROUNDWATER. IF YOU'RE GROUNDWATER YOU DON'T HAVE TO TREAT THE 
          WATER TO THE EXTENT THAT A SURFACE-WATER CITY DOES. >> KAUR: IT MAKES IT HARD TO COMPARE. SO WE ALWAYS THINK ABOUT COMPARING BETWEEN TEXAS CITIES BECAUSE WE'RE TEXAS. BUT IT WOULD BE INTERESTING FOR US TO FIND A SIMILAR -- IF WE REALLY WANT TO UNDERSTAND HOW OUR RATES ARE IN COMPARISON AND THINGS 
          THAT WE'RE DOING WELL. >> PUENTE: ONE, FOR EXAMPLE, IS EL PASO. 
          EL PASO HAS A SEPARATE BOARD FOR THEIR WATER UTILITY, LIKE WE DO. 
          THEY ARE GROUNDWATER BASED ALSO. THEY HAVE VERY GOOD WATER CONSERVATION PROGRAMS. THEY HAVE A DESAL PLANT. THEY DON'T HAVE A TOILET TO TAP BUT THEY DO DISCHARGE SOME OF THEIR CLEAN, EFFLUENT INTO AN AQUIFER AND THEN THEY PULL IT OUT AND TREAT AND USE IT. EL PASO WOULD BE A GOOD CITY 
          TO COMPARE US WITH. >> KAUR: I WOULD LOVE TO SEE THEM ADDED AND IF WE COULD DO A LITTLE BIT MORE COMPARISON JUST IN TERMS OF THE THINGS THEY'RE DOING 
          FROM AN INFRASTRUCTURE BASIS. >> PUENTE: IF YOU GO TO 
          THE NEXT SLIDE, YOU WILL SEE EL PASO. >> KAUR: PRETTY CLOSE. 
          I APPRECIATE THAT. THANK YOU. I WANTED TO CALL OUT A COUPLE OF THE PROGRAMS. I'M SURE COUNCILWOMAN CASTILLO IS GOING TO MENTION THIS BECAUSE SHE DOES OFFICE HOURS ALL THE TIME. WITH OUR UPLIFT PROGRAM WE DO A LOT WITH CECILIA. AND APPRECIATE THE TEAM THAT HELPS US GET FOLKS ON THAT PROGRAM. IT'S REALLY HARD. YOU JUST MENTIONED THERE'S 14 PROGRAMS SO WE WERE JUST TALKING AS A TEAM, WHAT IS THE IMPACT FOR A RESIDENT? IT'S REALLY HARD FOR US BECAUSE THERE ARE SO MANY PROGRAMS TO UNDERSTAND DEEPLY. ARE THE PEOPLE THAT NEED THE HELP GETTING SUFFICIENT HELP? SO IT WOULD BE GREAT IF ADDING ON TO THE LIST OF THINGS TO TALK ABOUT, IF WE COULD GET A REPORT BY DISTRICT ON WHAT THE AVERAGE BILL IS IN COMPARISON TO IF WE HAVE DATA ON INCOME AND HOW WE'RE HELPING FOLKS, AT LEAST IN THE UPLIFT PROGRAM, HOW MUCH ARE THEY HELPING. AND THE ONE QUESTION I HAVE ABOUT THAT PROGRAM, SPECIFICALLY, IS WHY IS THE HOME VALUE INCLUDED IN THAT PROGRAM? BECAUSE THERE'S SO MANY OTHER THINGS -- IF I'M A SENIOR AND HAPPEN TO BE LIVING IN ONE OF MY NEIGHBORHOODS WHERE THE HOME VALUE HAS APPRECIATED BECAUSE IT'S ALTA VISTA OR WHATEVER BUT MY INCOME HAS NOT CHANGED, WE HAVE A COUPLE OF FOLKS NOT ELIGIBLE FOR THAT PROGRAM. 
          >> PUENTE: WE HAVE TO SET IT SOMEWHERE, BUT SPECIFICALLY I THINK IT'S 
          $350,000. >> KAUR: INCOME I UNDERSTAND. 
          BUT WHY THE HOME VALUE? >> THAT WAS A QUESTION WE STARTED WORKING ON A LONG TIME AGO. THE PROBLEM IS -- AND WE TRY TO MAKE IT EASIER FOR -- I 
          [01:30:01]
USE THE WOODLAWN AREA. WHEN PEOPLE BOUGHT THAT HOUSE, THEY HAVE LIVED THERE FOREVER. NO REASON OF THEIR OWN, THE PROPERTY VALUE RISES. 
          AT SOME POINT FAMILIES WILL MOVE INTO DIFFERENT HOMES OR RENT DIFFERENT HOMES AND IF THE VALUE IS GOING TO EXCEED THAT IT'S GOING TO BE ASSISTING THEM -- TRYING TO BETTER EXPLAIN THIS WITHOUT CONFUSING IT. WE HAD TO SET A LIMIT SO THAT FOLKS THAT WERE LIVING IN HOMES THAT WERE HALF A MILLION DOLLARS, THEY HAVE THE FUNDS TO LIVE IN THAT 
          HOME. AND SO -- >> KAUR: I'LL PUSH BACK ON THAT A LITTLE BIT. IF THE HOME IS PAID OFF AND THEY HAVE BEEN LIVING IN IT FOREVER AND IF THEY'RE A RETIREE AND MAKING THE SAME AMOUNT, DOESN'T THE INCOME 
          ADJUST FOR THAT? >> WELL, THE INCOME WILL TAKE CARE OF THAT ISSUE. 
          IF THEY'RE OF A CERTAIN INCOME, REGARDLESS OF THE PRICE OF THEIR HOME, THEY 
          WILL QUALIFY AND WE WILL HELP THEM. >> KAUR: I'M CURIOUS TO 
          HEAR WHAT MY OTHER COUNCIL COLLEAGUES HAVE TO SAY. >> IN WORKING WITH ROBERT, DEPENDING ON THE CORRECT. THE VALUES CONTINUE TO ESCALATE AND THEY'RE ON A LIMITED INCOME, THEN WE HAVE BEEN ABLE TO LOOK AT A SITUATION LIKE THAT AND MAKE 
          THE DETERMINATION TO ALLOW THEM INTO THE PROGRAM. >> KAUR: THAT'S GOOD TO KNOW. IT WOULD BE GREAT TO CONTINUE THAT CONVERSATION, JUST SO WE CAN BETTER UNDERSTAND. AGAIN, JUST BREAKING DOWN IN OUR DISTRICTS THE NUMBER OF PEOPLE THAT ARE GETTING SUPPORT AND THE PERCENTAGE. 
          I'M NOT SURE HOW TO BEST QUANTIFY THAT. I WAS THINKING WHAT I WANT TO KNOW, WHAT PERCENTAGE OF THEIR BILL IS BEING REDUCED OR THE DOLLAR AMOUNT. 
          BECAUSE DOLLAR AMOUNT COULD BE SUBJECTIVE, TO YOUR POINT. 
          IT MIGHT BE GOOD TO SAY HOW MUCH WE'RE ABLE TO HELP THEM. 
          >> WE'LL GET THAT INFORMATION TOGETHER. >> KAUR: I APPRECIATE IT. 
          THE LAST THING I'M GOING TO END UP ON IS THE INFRASTRUCTURE. 
          ANY TIME SOMEONE IN DISTRICT 1 HEAR UTILITY WORK THEY START TO HAVE A MINI PANIC ATTACK, ME INCLUDED. WE ACTUALLY HAD A REALLY GOOD MEETING. 
          THERE'S GOING TO BE SEVERAL MAJOR WATER LINE WORK BEING DONE IN AND AROUND OUR NEIGHBORHOODS. AND YOU SHOWED SOME OF THAT REALLY OLD INFRASTRUCTURE THAT NEEDS TO BE REPLACED. I'M LIKE, DOES [LAUGHTER] BAD JOKE. BUT MY POINT IS THAT WE'VE GOT TO GET BETTER ON DOING THAT WORK. WE'VE GOT TO GET BETTER ON COMMUNICATING. AND WE'VE ALREADY MADE A LOT OF PROGRESS. 
          THIS HILDEBRAND ONE WE SENT OUT. WE'RE COMMUNICATING, SENDING OUT MONTHS BEFORE THIS IS HAPPENING. THERE'S GOING TO BE SAWS WORK HAPPENING. EVEN STILL, FOR SOME REASON, THE THING THAT REALLY IS THE LONG PART OF THE PROCESS IS GETTING AN ACTUAL SCHEDULE. IT'S SO TOUGH TO KNOW. 
          BECAUSE YOU HAVE TO GO THROUGH THE WHOLE CMAR PROCESS UNTIL YOU GET A SET SCHEDULE FROM THE CONTRACTOR. IF THERE WAS ANY WAY WE COULD GET EARLIER ON ABOUT WHAT THAT SCHEDULE LOOKS LIKE, I THINK THAT WOULD BE 
          REALLY HELPFUL. >> PUENTE: ARE YOU TALKING ABOUT THE CONSTRUCTION 
          SCHEDULE? >> KAUR: YES, SIR. >> PUENTE: WE DON'T CONTROL THE CONSTRUCTION SCHEDULE. YOUR PUBLIC WORKS DOES. 
          >> KAUR: BUT WE'VE BEEN COMMUNICATING THIS WHOLE TIME, OUR HILDEBRAND PROJECT, WITH THE SAWS TEAM. WE HAVEN'T BEEN ABLE TO GET THE SCHEDULE FOR THAT. 
          OH, I OPENED A CAN OF WORMS. >> SO THIS IS FOR A SAWS WATER REPLACEMENT. 
          IT'S NOT JOINT BID WITH THE CITY. AND SO THIS IS ALSO NOT GOING TO BE CMAR, IT'S DESIGN, BID, BUILD. WHEN WE GET THE BIDS FROM THE CONTRACTOR, ONE OF THE VERY FIRST SUBMITTALS FROM THE CONTRACTOR IS GOING TO BE THE SCHEDULE. SO WE HAVEN'T BID YET. AS SOON AS WE GET THAT WE CAN SHARE THAT WITH YOUR OFFICE, WITH THE COMMUNITY. I THINK GAVINO SHARED WE'RE STARTING SOMETHING NEW WHERE WE'RE GOING TO HAVE QR CODES ON OUR PROJECT SIGNS AND IT'S GOING TO HAVE REGULAR UPDATES, INCLUDING UPDATES TO THE SCHEDULE. 
          EVERY MONTH THAT CONTRACTOR COMES AND UPDATES THE SCHEDULE. 
          THINGS CHANGE. I WISH THEY DIDN'T, BUT THEY CHANGE ALONG THE WAY. 
          THERE'S A DELAY. THERE'S A WEATHER CLAIM. A PIECE OF EQUIPMENT BROKE DOWN. THINGS THAT CHANGE THINGS. AND SO WE'RE GOING TO HAVE THAT INFORMATION, HOPEFULLY EVERY TWO WEEKS. CERTAINLY EVERY MONTH WHERE IT DOESN'T JUST HAVE TO GO TO YOUR OFFICE. THEY CAN CLICK ON THAT QR CODE AND THEY CAN GET ACCESS TO A WEBSITE WITH THAT LATEST PROJECT SCHEDULE. 
          SO WE HEAR YOU AND IT'S A WORK IN PROGRESS. >> KAUR: WE HAVE BEEN WORKING ON THIS AND WE'VE BEEN WORKING ON TRYING TO COMMUNICATE BETTER WITH THE COMMUNITY IN ALL OF THIS. THERE'S A BUNCH OF DIFFERENT SAWS' PROJECTS GOING ON. 
          WE HAVE A BIG ONE WHERE WE HAVE TO GO INTO PEOPLE'S YARDS. 
          THERE'S A LOT OF WORK HAPPENING AND THE MORE WE CAN GET BETTER ON COLLABORATION AND COMMUNICATION, I THINK STRONGER. 
          I WANT TO GIVE YOU GUYS A SHOUT OUT. WE HAD AN ISSUE IN LAVACA WITH THE WATER LINE AND YOU GUYS HAVE PUSHED THAT BACK A YEAR SO THE GREEN LINE CAN 
          [01:35:05]
GO IN FIRST AND THEN COME BACK AND DO THAT WATERLINE WORK. 
          THERE IS STILL ROOM TO CONTINUE TO WORK WITH NEIGHBORHOODS ABOUT WHAT THE DETOURS LOOK LIKE. HOW ARE THEY GOING TO MANAGE WHILE THE CONSTRUCTION IS HAPPENING. I KNOW Y'ALL'S MAIN GOAL IS TO BE A WATER PROVIDER AND MAKE SURE THAT IS WHAT WE DO. BUT THE SUBSIDIARY IMPACT AROUND INFRASTRUCTURE IS REAL. AND SO I THINK JUST AS MUCH AS WE CAN GET STRONGER AT THAT, THE BETTER THAT OUR COMMUNITY WILL SEE US. 
          BECAUSE, YOU KNOW, COUNCILMEMBER WHYTE AND I ALWAYS LIKE TO SAY PEOPLE DON'T SEE WHOSE LOGO IS ON THE SIDE OF THE TRUCK, THEY JUST SEE A TRUCK, OR 
          CONSTRUCTION VEHICLE. >> PUENTE: I MISUNDERSTOOD YOUR QUESTION. 
          EVEN ON SOME PROJECTS THAT ARE SAWS' PROJECTS THAT AFFECT LIKE A HIGH CORRIDOR LIKE HILDEBRAND, WE WILL BID THE PROJECT THAT YOU HAVE TO DO IT IN A SHORTER PERIOD OF TIME. IT'S MORE EXPENSIVE BUT IN THE LONG RUN IT HELPS 
          EVERYONE TO GET IN AND OUT AS QUICKLY AS POSSIBLE. >> KAUR: THIS IS MY LAST PLUG FOR WHY WE NEED BETTER COMMUNICATION SYSTEMS WITH OUR RESIDENTS FOR ALL THREE ENTITIES. BECAUSE THERE WAS A PROJECT THAT ALL THREE OF US WORKED ON. CITY, SAWS, CPS AND ONE SMALL STREET ON THE WEST PART OF OUR DISTRICT. IT ENDED UP BEING A LOT MORE CHALLENGING BECAUSE THERE WAS AN ACCIDENTAL WATER BREAK. THERE WAS A GOOGLE FIBER LINE UP FOREVER. WE NEED TO HAVE GOOD COMMUNICATION SO WE CAN SEND OUT MESSAGES SAYING THIS IS WHAT'S HAPPENING. OTHERWISE, IT'S LEFT TO THE CONSTRUCTION PERSON WHO IS ON SITE AT THAT TIME. AND OFTENTIMES THEY THROW SOMEONE ELSE UNDER THE BUS AND DON'T REALLY HAVE A LOT OF GOOD INFORMATION. 
          SO I THINK THE BETTER THAT LEADERSHIP AT THE TOP CAN COLLABORATE AND GET REALLY GOOD ON MAKING SURE WHEN WE DO DOOR HANGERS THERE'S ALL PROJECT MANAGERS LISTED ON IT. LIKE, THERE WAS ONE IN ERIK'S COMMUNITY THAT HE GOT FOR HIS STREET REPAIR THAT HAD ALL THE THREE UTILITIES AND PROJECT MANAGERS LISTED. 
          THE MORE WE CAN DO THAT, I THINK WOULD BE BETTER. DO YOU REMEMBER WHICH ONE? 
          >> TO COLLABORATION AND MAKING SURE THAT AT THE END OF THE DAY OUR RESIDENTS GET TO SEE 
          A BETTER END PRODUCT. THANK YOU SO MUCH, MAYOR. >> MAYOR JONES: MR. PUENTE, DID YOU WANT TO SHARE YOUR CELL PHONE WITH EVERYBODY? 
          >> PUENTE: ALL OF YOU HAVE IT. EVEN ANDY. 
          >> MAYOR JONES: COUNCILWOMAN ALDERETE GAVITO. 
          >> GAVITO: THANK Y'ALL SO MUCH FOR BEING HERE TODAY. I'M GLAD WE'RE GOING BACK TO THE FIRST PRESENTATION, WE'RE DISCUSSING THIS. WATER LOSS IS SUCH A MAJOR ISSUE, ESPECIALLY WITH THE WARMING CLIMATE AND A GROWING POPULATION. 
          I KNOW ANDREA GAVE A GREAT PRESENTATION ON WHAT Y'ALL ARE DOING BUT CAN Y'ALL 
          QUANTIFY HOW MUCH WATER WAS LOST IN 2024? >> I HAVE TO DIG THAT UP. 
          >> GAVITO: I THINK IN 2023 IT WAS OVER 20 BILLION GALLONS IN ONE 
          YEAR. >> I DID NOT BRING THAT BUT WE CAN CERTAINLY GET THAT TO 
          YOU. >> GAVITO: I THINK -- I'M THINKING THROUGH EXPRESS NEWS REPORTS. I THINK WE'RE TALKING ABOUT 20-PLUS BILLION GALLONS OF WATER, OF A SCARCE RESOURCE BEING LOST ON OUR STREETS EVERY SINGLE YEAR. 
          LET'S JUST SAY IT IS 
          >> PUENTE: YES BUT IT'S HARD TO CALCULATE A MEANINGFUL PERCENTAGE NUMBER. ONE OF THE FIRST SLIDES IN THE PRESENTATION YOU SAW WE NEED TO KNOW HOW MUCH WATER WE'RE PUTTING INTO THE PIE. AND THAT IS -- AN ATTEMPT TO DO THAT IS TO CHANGE OUT THESE HUGE, GIANT METERS AND THESE HUGE, GIANT PIPES THAT BRING WATER OUT OF THE EDWARDS AQUIFER. THEY TENDED TO -- THEY'RE ABOUT 20 YEARS OLD AND WE'RE PUTTING IN NEW METERS. THAT WILL GIVE US THE RIGHT NUMBER TO COMPARE EVERYTHING ELSE TO. AND THEN ADEQUATELY KNOW 
          WHAT THAT PERCENTAGE IS. >> GAVITO: YEAH. I THINK IN 2023, AT LEAST FROM WHAT WE FOUND, IS AROUND 20% OF Y'ALL'S INVENTORY. 
          I'M CURIOUS TO SEE HOW THAT NUMBER HAS CHANGED, GIVEN ALL THAT YOU SAID IN 2024. 
          I THINK ABOUT IT AND IF ANY BUSINESS WAS LOSING THAT MUCH OF THEIR INVENTORY, THAT IS UNACCEPTABLE. AND IT'S UNACCEPTABLE I THINK FOR ALL OF US TO BE OKAY WITH SAWS LOSING THAT MUCH WATER. YOU KNOW, ONE OF THE BIGGEST THINGS, SAWS AND OUR WATER ALWAYS COMES UP AT OUR MONTHLY COFFEES WITH THE COUNCILWOMAN. ONE OF THE THINGS I THINK IS FAIR IS THAT RESIDENTS SAY, HEY, SAWS IS COMING DOWN ON ME. SAWS IS ASKING FOR A RATE INCREASE. SAWS IS COMING DOWN ON CONSERVATION EFFORTS, WHICH 
          [01:40:02]
I'M GLAD THAT Y'ALL DO. BUT WE'RE ALSO DRIVING ON STREETS WHERE THERE'S WATER LEAKS FOR WEEKS. AND I APPRECIATE AND I APPLAUD Y'ALL'S EFFORTS FOR THE QUICKER REPAIR TIME. IT'S JUST WE'RE STILL SEEING SO MUCH WATER LOSS. 
          AND IT CREATES A VERY TOUGH MESSAGE TO TELL RESIDENTS, OH, CONSERVE YOUR WATER BUT 
          SAWS WATER CAN LEAK ON OUR STREETS. >> PUENTE: YES, IT IS EMBARRASSING TO LOSE THAT MUCH INVENTORY AND THAT'S WHY WE ARE STEPPING UP WHAT WE'VE BEEN DOING. IF YOU LOOK AT 2023, THAT WAS THE HEIGHT OF THAT WATER LOST. AND 2024, 2025, THAT HAS GONE DOWN. 
          SO IT'S GOING DOWN. WE ARE ADDRESSING IT. WE HAVE ALREADY BEEN ADDRESSING IT AND ONE WAY WAS BY HIRING MORE WORK CREWS, MORE BOOTS ON THE GROUND. HIRING MORE LEAK DETECTION CREWS TO FIND OUT WHERE THOSE LEAKS ARE. AND THAT HAS BEEN VERY -- THE METRICS ON THAT ARE VERY GOOD. IT COSTS MONEY TO DO ALL OF THIS. 
          LUCKILY, SO FAR WE HAVE BEEN DOING IT WITHOUT A RATE INCREASE. 
          WE WANT TO CONTINUE DOING IT. WE WANT TO CONTINUE DRIVING THAT NUMBER DOWN. FOR EXAMPLE, WE CREATED AN OFFICE STRICTLY FOR THAT PURPOSE. HIRED AN INDIVIDUAL TO RUN THAT. 
          HE WAS SUPPOSED TO PRESENT BUT SOME CIRCUMSTANCES HAPPENED. 
          HE HAS A TEAM THAT IS DEDICATED TO DO THAT. I WANT TO COMMEND OUR CHAIRWOMAN AND OUR BOARD FOR HOLDING SPECIAL BOARD MEETINGS OUTSIDE OF THE ORDINARY ONES TO UNDERSTAND THIS ISSUE, UNDERSTAND ALL OF THIS PIE GRAPH AND WHAT WE COULD DO ABOUT IT. SO THE PRESSURE THAT YOU'RE PUTTING ON US, THE BOARD PUT THAT PRESSURE ON US TWO YEARS AGO AND I THINK WE'RE ADDRESSING IT. 
          THOSE NUMBERS ARE GOING DOWN AND I FEEL CONFIDENT, AS DURING YOUR TIME HERE, DURING MY TIME HERE, THAT THOSE NUMBERS WILL CONTINUE TO GO DOWN. 
          >> GAVITO: OKAY. WELL, THANK YOU FOR THAT. AND I AM GLAD THAT THOSE NUMBERS ARE GOING TO CONTINUE TO GO DOWN. THEY JUST CAN'T GO DOWN FAST ENOUGH FOR US. WE'RE GOING TO KEEP THE FOOT ON THE GAS BECAUSE WE'RE SEEING A SCARCE RESOURCE BEING LEAKED ON OUR STREETS AND QUITE FRANKLY IT'S UNACCEPTABLE. I KNOW ANY WATER SYSTEM IS GOING TO HAVE THAT BUT HOWEVER WE CAN MINIMIZE THOSE EFFORTS, WE NEED TO DO SO. 
          WE KIND OF ACTUALLY TAKES ME TO THE CAPITAL PROJECTS ONE, OR THE SECOND SLIDE. 
          I KNOW THAT Y'ALL ARE COMING IN FOR A BUDGET DEFERRAL. BUT IT MAKES ME A LITTLE NERVOUS. I THINK THAT SOME OF THE SAWS' APPOINTMENT WAS A DELAY ON OUR CITY SIDE TOO. I'M NERVOUS OF DEFERRING ALL OF THESE IMPROVEMENTS. 
          PUSHING BACK Y'ALL'S BUDGET AND SOME OF THESE PROJECTS DOESN'T MAKE SENSE TO ME, JUST BECAUSE WE HAVE NEW BOARD MEMBERS. ALL OF US ARE ELECTED NEW COUNCIL MEMBERS AND WE GO STRAIGHT INTO THE BUDGET. AND I'M CONFIDENT THAT WITH THE NEW BOARD MEMBERS THAT WE PICKED FOR SAWS THAT THEY CAN GET UP TO SPEED AND KNOW ABOUT CAPITAL PROJECTS. WHEN I JOINED THE VIA BOARD, I GET IT. 
          YOU'RE LEARNING A WHOLE BUNCH OF WONKY STUFF BUT AT THE SAME TIME TOO, THAT'S 
          WHAT THEY'RE CHARGED TO DO. >> COUNCILWOMAN, I APPRECIATE YOUR COMMENTS. 
          I ASKED FOR THE SCHEDULE ON THE DEFERRED BUDGET BECAUSE I WAS NOT COMFORTABLE. 
          AND I WANTED STAFF TO GO BACK AND UPDATE OUR COST OF SERVICE STUDY. 
          BEFORE WE BRING A RATE INCREASE TO THE CITY COUNCIL, I WANT TO BE CONFIDENT WITH THE COST IT TAKES FOR US TO RUN SYSTEM. SO I UNDERSTAND YOUR NERVOUSNESS WITH THE DEFERRAL OF THE BUDGET. WON'T BE MORE THAN SIX MONTHS . WE WILL ADOPT THE BUDGET IN NOVEMBER, THE INTERIM BUDGET, AND WE HAVE ALREADY BEGUN THE WORK WITH OUR CONSULTANT TO UPDATE OUR COST OF SERVICE STUDY. BY EARLY '26 WE HOPE TO BE BACK HERE TALKING WITH THE COUNCIL ABOUT THE PROPOSED RATE PROGRAM, MULTI-YEAR RATE PROGRAM THAT WE WANT TO 
          PROPOSE. THAT WAS ON THE BOARD. >> GAVITO: I DIDN'T REALIZE IT WAS SIX MONTHS BUT I WANT TO MAKE SURE WE'RE NOT GOING TO BE DEFERRING ANY OF OUR WATER LOSS REPLACEMENT OR ANY BIG CAPITAL PROJECTS, JUST 
          BECAUSE OF THAT. >> WE HAVE A CERTAIN AMOUNT OF CAPITAL IN THE PROPOSED BUDGET IN NOVEMBER, BUT THE LARGER CAPITAL PROGRAM YOU WILL NOT SEE UNTIL WE CAN 
          COME BACK FOR RATE SUPPORT. >> GAVITO: THANK YOU FOR THAT. 
          ONE OF THE OTHER THINGS THAT I DID WANT TO TALK ABOUT ON THAT CAPITAL NEEDS AND PROJECTIONS PRESENTATION IS THAT I DO KNOW THAT SAWS DOES A GREAT JOB OF DIVERSIFYING OUR WATER SUPPLY. WE'RE STILL HEAVILY RELIANT ON THE EDWARDS AQUIFER. WE DO NEED TO MAKE AN EFFORT TO PROTECT OUR AQUIFER AND ENSURE OUR WATER SUPPLY IS NOT DEGRADED BY DEVELOPMENT. YESTERDAY COUNCILWOMAN MEZA GONZALEZ AND I TOURED THE RANCH AND ONE OF THE THINGS -- WE MET WITH THE 
          [01:45:03]
ALLIANCE. WE HEARD THEIR CONCERNS. I MET WITH THE DEVELOPER, HEARD THEIR CONCERNS , MET WITH THE CITY ON THIS, HEARD THEIR CONCERNS. 
          YOU KNOW I ISSUED THAT MEMO TO ASK SAWS AND THE EDWARDS AQUIFER AUTHORITY ON THEIR POSITION ON THIS. AND THANK YOU FOR THE QUICK RESPONSE, ROBERT. 
          BUT I WAS REALLY LOOKING FOR SPECIFIC ANSWERS. BECAUSE GAVE ME GREAT INFORMATION BUT I DON'T FEEL THE ANSWERS TO THE QUESTIONS WERE MISSED. WE NEED TO UNDERSTAND THE POTENTIAL RISKS TO RESIDENTS ON THIS DEVELOPMENT AND WE NEED TO UNDERSTAND THE POTENTIAL RISKS TO RESIDENTS' DRINKING WATER. WE NEED TO UNDERSTAND THE IMPACTS TO THE EDWARDS AQUIFER CONTRIBUTING ZONE AND RECHARGE ZONE AND ALTERNATIVES TO THE WASTEWATER TREATMENT PLANT BEING THERE. I'M NOT SURE WE GOT THAT IN YOUR E-MAIL SO WE'RE STILL LOOKING FOR THAT INFORMATION. 
          THAT ONE IS GOING TO BE HEAVY ON ALL OF US. WE'RE NOT WATER EXPERTS. 
          WE'RE LOOKING TO YOU ALL AS A WATER EXPERT TO HELP US WITH THAT INFORMATION. 
          >> PUENTE: ANY SPECIFIC INFORMATION YOU NEED AND WANT, I'M READY AND ABLE TO PROVIDE THAT TO YOU, INCLUDING SAWS' POSITION, INCLUDING OUR CONTINUED CONVERSATIONS WITH LENNAR, WH,Y WE DID WHAT WE DID. WHATEVER INFORMATION YOU 
          NEED, WE ARE READY TO PROVIDE IT. >> GAVITO: SOUNDS GOOD. 
          THANK YOU. AND THEN THE LAST THING -- I DID HEAR COUNCILMAN GALVAN TALK ABOUT DATA CENTERS. I'M A LITTLE NERVOUS ABOUT THAT WHEN YOU RESPONDED WE'RE NOT PLANNING FOR THAT. I THOUGHT I SAW MATT JONES IN THE ROOM. 
          I KNOW CPS IS PLANNING ON THAT. AGAIN, YOU KNOW, I WOULD JUST ASK FOR THAT COORDINATION OF UTILITIES BETWEEN THE CITY, SAWS, AND CPS ON WHAT ARE WE LOOKING AT IN TERMS OF DATA CENTERS MOVING HERE, BUSINESSES MOVING HERE, ALL OF THAT STUFF IN GENERAL I THINK WE NEED TO BE LOCKSTEP AND NOT 
          PRETEND IT'S GOING TO HAPPEN. >> PUENTE: IF DATA CENTERS DO LOCATE HERE, RUDY GARZA, MATT JONES, AND THE CPS TEAM WILL HANDLE THAT PART OF IT. 
          WE ARE CONFIDENT THAT WE HAVE THE WATER SUPPLY FOR THAT KIND OF INDUSTRY, IF 
          THEY WANT TO LOCATE HERE. WE ARE CONFIDENT OF IT. >> GAVITO: OKAY. 
          >> PUENTE: DO WE WANT IT OR NOT, THAT'S ANOTHER ISSUE. 
          >> GAVITO: WELL, I THINK YOU TOUCHED ON THIS TOO. I THINK WE NEED TO FEEL CONFIDENT THAT WE'RE SEEING THAT BALANCE OF WHAT THAT WATER SUPPLY THESE DATA CENTERS WOULD NEED BUT ALSO THE WATER SUPPLY TO OUR RESIDENTS. 
          >> PUENTE: WE FEEL CONFIDENT, BASED ON OUR SUPPLY AND PROJECTIONS THAT IF THEY LOCATE WITHIN OUR SERVICE AREA THAT WE CAN PROVIDE THE WATER THEY NEED 
          FOR THEIR BUSINESS. >> GAVITO: THANK YOU. THOSE ARE ALL MY QUESTIONS. 
          THANKS. >> MAYOR JONES: COUNCILWOMAN SPEARS. 
          >> SPEARS: THANK YOU, MAYOR. THANK YOU FOR THE PRESENTATION. I GOT TO TOUR THE DESAL PLANT AND I HAVE TO SAY IT'S IMPRESSIVE. AND I LEARNED ABOUT OUR WATER STRUCTURE AND DIVERSIFICATION OF OUR WATER SOURCES WITH YOU, ACTUALLY. THIS IS JUST A GENERAL QUESTION. DO YOU HAVE A TIMELINE FOR THAT EXPANSION AT ALL? 
          >> PUENTE: IT DEPENDS ON HOW FAST WE GROW. IF WE SEE AN ASTRONOMICAL GROWTH IN OUR COMMUNITY, THAT PLANT WAS BUILT AND CAME ONLINE IN 2016. 
          BUT HALF OF THE PLANT IS ESSENTIALLY ALREADY BUILT TO BE ABLE TO PUT MEMBRANES IN THERE, THE ACTUAL APPARATUS THAT CLEANS THE WATER. AND SO ALL WE HAVE TO DO IS DIG MORE WELLS ON OUR PROPERTY AND SOME IN WILSON COUNTY OR ATASCOSA COUNTY AND BRING THAT WATER IN TO BE TREATED. SO THE DESAL PLANT, WE'RE VERY CONFIDENT BECAUSE WE CONTROL IT. WE HAVE ALREADY MADE SOME EXPENDITURES ON IT. SO IF THE GROWTH HAPPENS TOMORROW, WE CAN BE ONLINE. 
          PROJECTIONS ARE IT WON'T HAPPEN UNTIL THE 2040S. IN OUR PLANNING IT'S NOT UNTIL THE 2040S THAT THAT PLANT WOULD HAVE TO BE EXPANDED. 
          >> SPEARS: GOOD TO KNOW. IF YOU HAVEN'T TOURED IT, I SUGGEST YOU TOUR IT. 
          I KNOW WE ARE DOING THIS COST OF SERVICE ANALYSIS BUT SO I WANT TO ECHO WHAT MY FELLOW COUNCIL MEMBERS ARE HEARING FROM THEIR RESIDENTS. 
          FOR INSTANCE, MY CHIEF OF STAFF, HER PARENTS GOT THE SMART METER INSTALLED. 
          THE NEXT BILL WAS $2,000 ON A REGULAR HOME. AND THEIR NEIGHBORS EXPERIENCED THE SAME PROBLEM. AND I KEEP HEARING THAT FROM SOME OF MY RESIDENTS. AND I KNOW THERE'S A TIERED STRUCTURE ON USAGE. 
          ONE OF MY QUESTIONS IS HOW -- I KNOW WE HAD AN ADVISORY COMMITTEE LOOKING AT THOSE RATES. I GUESS THE TIERS AND HOW THOSE RATES ARE THERE. 
          I MEAN, HOW DO YOU COME UP WITH THAT USAGE NUMBER? >> PUENTE: THERE'S A 
          [01:50:02]
COUPLE OF THINGS THAT YOU MENTIONED. ONE, IF WE INSTALLED THE METER AND ALL OF A SUDDEN THEIR BILL GOES UP, SOMETHING HAPPENED. 
          SOMETHING OUT OF THE ORDINARY HAPPENED. AND SO IT MAY BE AN UNDETECTED LEAK THAT THEY USED TO HAVE THAT NOW IT'S BEING DETECTED. 
          WHATEVER THEIR BILL WAS FOR THE PRIOR FEW MONTHS, WE WOULD NEED TO LOOK AT THAT AND SEE WHAT HAPPENED. AND IF YOU GIVE US THE ADDRESS, WE WILL LOOK AT -- 
          >> SPEARS: I THINK IT'S SEVERAL. >> PUENTE: WE WILL LOOK AT ALL OF THEM BECAUSE WE DO GET A LOT OF THOSE REQUESTS FOR SERVICE OR TO LOOK INTO THAT PROBLEM. AND I'M CONFIDENT TO SAY THAT ABOUT 95% OF THEM THEY SAY THEY HIRED A PLUMBER, THEY'VE LOOKED FOR A LEAK. THERE'S NO LEAK. 
          WE SEND OUR TEAM IN AND WE FIND A LEAK THAT SURE ENOUGH THEY HAVE A LEAK. 
          THEY SUBMIT THE REPAIR OF THAT LEAK TO US AND WE COMPROMISE. 
          WE DISCOUNT THEIR WATER BILL. THAT'S PART OF OUR PROGRAM THAT WE DO. SO THAT WAS ONE PART OF YOUR QUESTION. 
          AND THE OTHER PART WAS? >> SPEARS: WHEN WE LOOK AT THE AVERAGE TO EVALUATE THOSE TIERS, ARE WE TAKING INTO ACCOUNT DIFFERENT TYPES OF BUSINESSES? 
          COMMERCIAL AND ON THE RESIDENTIAL SIDE? >> PUENTE: COMMERCIAL RATES ARE THE AMOUNT OF WATER THAT YOU USE. SO IS RESIDENTIAL. 
          BUT IT IS -- THERE ARE TIERS AND THE ONE TIER THAT ONCE YOU HIT 20,000 GALLONS THAT'S WHERE IT STARTS GETTING EXPENSIVE. WE JUST LOOKED AT THAT. 
          THAT WAS IMPLEMENTED. CITY COUNCIL APPROVED THAT -- PRIOR CITY COUNCIL APPROVED THAT LAST YEAR FOR US TO BE ABLE TO CHARGE THAT. 
          AND SO, YES. WE LOOK AT THAT EVERY FIVE YEARS. 
          THIS RATE STUDY THAT WE'RE LOOKING AT, WE'RE GOING TO SEE HOW MUCH REVENUE COMES 
          IN THAT WAY AND HOW MUCH OTHER REVENUE COMES IN. >> I JUST WANTED TO SAY ON OUR GENERAL CUSTOMERS, WE'RE LOOKING AT THE PREVIOUS 12 MONTHS AVERAGE ANNUAL USAGE. 
          THEY HAVE TIERS BUT IT'S 100 TO 125% OF THEIR PREVIOUS YEAR'S AVERAGE AND 125 TO 150%. 150 TO 175. THAT'S THE TIERS FOR COMMERCIAL. VERY DIFFERENT THAN RESIDENTIAL WHERE IT'S 4,000 GALLONS, 10,000, 12,000 GALLONS, 20,000 GALLONS. VERY, VERY DIFFERENT THAN HOW WE ARE. WE DON'T WANT TO PENALIZE H-E-B FOR USING A LOT OF WATER BECAUSE OBVIOUSLY THEIR BUSINESS DICTATES THAT. 
          AGAIN, WE'RE NOT GOING TO PENALIZE THEM AT 200% OF THEIR RATE. 
          >> PUENTE: WE LOOK AT THAT EVERY FIVE YEARS. >> SPEARS: IN THIS CURRENT RATE STUDY THAT WE ARE LOOKING AT, WE AREN'T GOING TO BE CHANGING. 
          THAT'S NOT SOMETHING WE ARE LOOKING AT CHANGING THE RATE DESIGN. 
          WE'RE JUST LOOKING AT COST OF SERVICE TO MAKE SURE GENERAL CUSTOMERS ARE PAYING THEIR COST OF SERVICE. RESIDENTIAL IS PAYING THEIR COST OF SERVICE. 
          AND IF WE HAVE ANY DIFFERENCES IN THAT. >> I WILL SAY I DID SEE THE LEAK DETECTION WORK AT MY OWN HOME. I THINK THAT HAS BEEN VERY EFFECTIVE -- I MEAN, I SAW IT FOR MYSELF. ARE Y'ALL SEEING IT HAVE A 
          GOOD RETURN ON INVESTMENT? >> PUENTE: OH, YES. THE AMI METER IS TREMENDOUS. 
          IT GIVES US A WHOLE LOT OF DATA. A WHOLE LOT OF INFORMATION. 
          WE CAN TELL A CUSTOMER THE NEXT DAY, HEY, YOU GOT A LEAK. 
          AS OPPOSED TO THEM WAITING, GETTING A VERY HIGH BILL, AND THEN CALLING US AND WE HAVE TO INVESTIGATE IT. THEREFORE, WE CAN SEND OUT A TEXT MESSAGE, AN E-MAIL TO THEM THAT LOOK AT YOUR SYSTEM. IT'S REGISTERING LIE. 
          YHIGH.YOU CAN CHECK IT ON YOUR PHONE. >> SPEARS: I WANT TO ECHO WHAT COUNCILWOMAN VIAGRAN SAID ABOUT SEEING THE MAPS AND THE AGING INFRASTRUCTURE AND THEN HOW WE'RE REDUCING THE LEAKS WHEN Y'ALL COME ON A REGULAR BASIS. 
          THAT WOULD BE REALLY HELPFUL. >> PUENTE: SURE. 
          >> SPEARS: LET'S SEE. SO I TOO DID THE G RANCH. I WANTED TO ASK THEY'RE NOT REALLY ON THE CCN MAP. I WONDERED HOW Y'ALL DETERMINED SEWER COVERAGE OR WASTEWATER COVERAGE, CONSIDERING THEY ARE IN THE CONTRIBUTING ZONE. 
          AND YOU MENTIONED Y'ALL ASKED DEVELOPERS TO HELP WITH THE INFRASTRUCTURE THAT MIGHT BE NEEDED. ARE Y'ALL LOOKING AT REASSESSING AND PROVIDING 
          COVERAGE FOR THAT DEVELOPMENT? >> PUENTE: THAT AREA IS IN OUR WATER CERTIFICATE OF SERVICE AREA BUT NOT OUR WASTEWATER . 
          WE WERE OBLIGATED TO SERVE WATER. WE TOOK ADVANTAGE OF THAT AND GOT NINE DIFFERENT CONCESSIONS FROM THEIR ON THEIR WASTEWATER TREATMENT. 
          AND SO THAT WAS OUR AGREEMENT IS WE GOT THOSE CONCESSIONS, THOSE PROTECTIONS ON THE DISCHARGE WATER. AND THAT'S WHAT OUR 
          [01:55:02]
          INVOLVEMENT IN THAT WAS. >> SPEARS: BUT WHEN THEY ASKED IF Y'ALL WOULD PROVIDE 
          SEWER, YOU DECLINED? >> PUENTE: NO, IT'S NOT THAT WE DECLINED. 
          WE WOULD GLADLY PROVIDE SEWER BUT THEY HAVE TO PAY FOR IT. 
          FOR THEM, IT WAS TOO EXPENSIVE TO BUILD A SEWER LINE FROM THEIR DEVELOPMENT TO OUR SYSTEM. THEY DIDN'T WANT TO PAY. IT WAS ROUGHLY ABOUT A 
          $10 MILLION COST FOR THE SEWER LINE? >> 20 TO $40 MILLION, 
          DEPENDING ON WHAT OPTIONS THEY WENT WITH. >> PUENTE: SO THEY FOUND IT CHEAPER TO EITHER DO SEPTIC OR BUILD THEIR OWN -- WHAT THEY CALL PACKAGE 
          PLANT. WASTEWATER TREATMENT PLANT. >> SPEARS: ARE THERE ANY OTHER STRATEGIES THAT WE HAVE OR OPPORTUNITIES TO AVOID A RATE INCREASE OR TO MAINTAIN OUR CREDIT RATE. IS THERE ANYTHING ELSE WE CAN BE DOING? 
          >> PUENTE: THERE'S ALWAYS ROOM FOR IMPROVEMENT. I WILL SAY THAT. 
          BUT I WILL ALSO TELL YOU THAT THE LAST FIVE YEARS THAT WE HAVE NOT HAD A RATE INCREASE, WHAT SAWS DID, TO BE HERE TODAY, HELPS TELL THIS COUNCIL AND OUR PUBLIC THAT WE'VE DONE EVERYTHING WE CAN AND NOW WE'RE AT THAT POINT WHERE A RATE INCREASE IS NEEDED. WE WENT THROUGH COVID. ALL OF THE COSTS OF COVID WE ABSORBED. ALL OF THE INFLATIONARY COST. 
          ALL OF THE SUPPLY CHAIN COST, WE ABSORBED THOSE AND WERE ABLE TO FUNCTION WITHOUT A RATE INCREASE. DURING COVID, URI HAPPENED. ALL OF THE COST OF THE ACTUAL STORM WE ABSORBED WITHOUT A RATE INCREASE. THE TEXAS LEGISLATURE PASSED A BILL MANDATING THAT CERTAIN TYPES OF GENERATORS BE PUT ON CERTAIN FACILITIES TO KEEP THE PRESSURE UP, TO DELIVER WATER. THAT WAS A $200 MILLION HIT TO US. WE DID THAT, ARE DOING THAT WITH CPS, WITHOUT A RATE INCREASE. THIS COUNCIL CHOSE TO ASK SAWS TO CONTRIBUTE MORE OF OUR REVENUE TO THE CITY FROM 2.5% TO 4%. WE ABSORBED THAT. 
          DURING THAT TIME PERIOD, NO RATE INCREASE. ALL OF THESE THINGS WE FEEL WE HAVE ALREADY TIGHTENED THE BELT. WE HAVE DONE EVERYTHING WE CAN. WE ARE NOW IN THE POSITION WHERE WE HAVE THOSE NEEDS THAT WE HAVE AND WE CAN'T SQUEEZE MORE OUT. AND WE'RE ASKING FOR 
          ASSISTANCE FROM THIS COUNCIL. >> SPEARS: OKAY. 
          AND THEN CAN YOU TELL ME HOW MUCH MORE BEXAR MET INFRASTRUCTURE THAT WE HAVE 
          LEFT TO MANAGE? >> PUENTE: BEXAR MET WAS THE SIZE OF CORPUS CHRISTI. 
          WE TOOK THEM OVER OVERNIGHT. THEY DIDN'T COME WILLINGLY. SO THEIR INFRASTRUCTURE IS LET -- THEY WERE MAINTAINED A LOT LESS THAN SAWS. AND SO A LOT OF WHAT WE'RE DOING NOW IS SOME OF THEIR ABOVE-STORAGE TANKS, REPLACING THOSE. 
          SOME OF THEM WERE SO BAD WE JUST TORE THEM DOWN AND DIDN'T HAVE TO REBUILD IT BECAUSE OUR OWN SYSTEM WAS ABLE TO MOVE WATER OVER IN THERE. 
          SO TODAY, AS WE SIT -- YOU KNOW, THIS HAPPENED BETWEEN 2012 AND 2017. 
          SO HERE IN 2025 WE DON'T FEEL BEXAR MET ANYMORE. OUR SYSTEM IS NOT DIFFERENT. 
          ALL OF THEIR EMPLOYEES ARE PART OF OUR EMPLOYEES. TWO OF THEM ARE VICE PRESIDENTS NOW. SO IT'S BEEN FULLY, FULLY INTEGRATED. 
          >> SPEARS: BUT I MEAN HOW MUCH OF THEIR INFRASTRUCTURE ARE WE STILL TRYING TO REPLACE? AS RECENT AS LAST YEAR WE WERE DOING IT OUT IN STONE 
          OAK. >> PUENTE: SOME OF IT IS VERY GOOD INFRASTRUCTURE. 
          STONE OAK IS RELATIVELY NEWER INFRASTRUCTURE. THE SOUTHWEST PART OF THE CITY WAS BEXAR MET. RURAL PARTS OF THE COUNTY WERE ALSO BEXAR MET, SO WE'RE HAVING ISSUES THERE OF VERY SMALL WATER PIPES. TO GIVE YOU AN EXACT ANSWER, I HAVE TO GO BACK AND ASK ANDREA TO LOOK INTO THAT AND TELL YOU IN MORE DETAIL WHERE WE ARE AS FAR AS SOME OF THE UPGRADES THAT ARE NEEDED TO THE OLD BEXAR MELT 
          SYSTEM. >> SPEARS: I JUST WANT TO ECHO. 
          I WOULD LOVE TO SEE A COORDINATION OF EFFORT WHEN WE'RE PLANNING OUR PROJECTS AND USING QUALITY SUBS THAT ARE SCORING WELL. MAYBE WE LOOK AT INCENTIVES AND PENALTIES FOR THINGS THAT WE'RE TRYING TO DO HERE AT THE CITY AND PUBLIC WORKS ON OUR PROJECTS THAT MAYBE WE COULD COLLABORATE ON HOW TO DO THESE SCORING METRICS. 
          I HAVE SEEN SOME OF THESE SUBS, IT'S UNACCEPTABLE. AND I DON'T WANT TO USE THEM AGAIN IF THEY'RE NOT DOING GOOD WORK. AND I THINK YOU FEEL THE 
          [02:00:01]
          SAME WAY. >> PUENTE: DEFINITELY. I KNOW ERIK HAS REORGANIZED PART OF IT. I DON'T KNOW IF YOU HAVE HIRED THE PUBLIC WORKS DIRECTOR YET, THE NEW ONE. I LOOK FORWARD TO MEETING HIM OR HER. 
          >> WE STILL WORK WITH HIM. WE WILL CONTINUE TO COORDINATE AND MAKE SURE 
          THAT WE ARE DOING THE COMMON GOOD. >> SPEARS: OKAY. 
          ONE MORE QUESTION, BECAUSE YOU TOLD ME THIS WHEN I WENT TO THE DESAL PLANT. 
          HAVE YOU FORECASTED OUR CURRENT DROUGHT AND WHAT YEAR WE'RE IN? 
          >> PUENTE: YOU KNOW, IF YOU TAKE A LOOK AT THE -- EVERY MONTH WE PROVIDE OUR BOARD WITH DROUGHT CONDITIONS. YOU SEE THAT MAP AND THE TARGET HAS BEEN SHRINKING BUT IT'S SHRINKING OVER SAN ANTONIO. 
          SO NORTH TEXAS, THE DROUGHT IS ESSENTIALLY OVER. THE EXCEPTIONAL DROUGHT IS STILL OVER SAN ANTONIO. AND NOT JUST SAN ANTONIO BUT TO THE WEST OF SAN ANTONIO WHERE A LOT OF THE RECHARGE HAPPENS. SO WE ARE TRACKING THE DROUGHT OF RECORD OF THE 1950S. IF YOU SEE THE AQUIFER LEVEL, IT'S TRACKING THE SAME WAY GOING DOWN THE SAME WAY. 
          THAT DROUGHT LASTED ABOUT SEVEN, NINE YEARS. WE ARE PROBABLY IN YEAR SEVEN OF THAT DROUGHT. BUT WE'RE VERY CONFIDENT WITH OUR WATER SUPPLY THAT WE'LL MEET THE DEMANDS, EVEN IF THE DROUGHT OF RECORD STARTED TODAY, WE COULD 
          STILL MEET THAT DEMAND. >> SPEARS: OKAY. THAT'S GREAT. 
          ALL RIGHT. WELL, THANK YOU SO MUCH. >> PUENTE: YES. 
          >> MAYOR JONES: COUNCILWOMAN CASTILLO. >> CASTILLO: THANK YOU, MAYOR. THANK YOU, ROBERT FOR THE PRESENTATION. 
          CONGRATULATIONS TO YOU AND YOUR TEAM ON THE FINANCIAL EXCELLENCE RECOGNITION, PARTICULARLY FOR THE TCEQ ENVIRONMENTAL EXCELLENCE AWARD, WHICH Y'ALL HAVE RECEIVED TWICE AT THIS POINT. GRATEFUL TO SEE THAT AS WELL AS THE ENVIRONMENTAL TRIFECTA FOR THE WATER RECYCLING CENTER AND OF COURSE FOR THE OUTSTANDING CREDIT RATING. I'M EXTREMELY GRATEFUL THAT THIS YEAR HAS BEEN MUCH COOLER. WHAT THAT MEANS AND WHAT WE HAVE SEEN IN OUR COMMUNITY ARE LESS WATER MAIN BREAKS. I HAVE HAD SOME TIME TO SIT AND REVIEW THE 2025 WATER MANAGEMENT PLAN AND I APPRECIATE THE ROBUST KEY INTERVENTIONS THAT Y'ALL HAVE PUT IN PLACE IN TERMS OF HOW TO BE PROACTIVE WITH LEAK INVESTIGATIONS BY ENHANCING INTERNAL COMMUNICATION FINDINGS. 
          102 POSITIONS, THOSE BOOTS ON THE GROUND YOU'RE MENTIONING TO GO OUT FOR THE DISTRIBUTION AND COLLECTION OF DEPARTMENT -- TO ADDRESS THOSE WATER LOSS CALLS. 
          AND OPERATORS AND SO MUCH MORE. AND ALSO PROPOSE TO INCREASE SIX COORDINATORS TO SCHEDULE REPAIRS AND HIRE ADDITIONAL FIELD CREWS TO RESPOND TO THOSE REPAIRS. WITH THOSE ROBUST IMPROVEMENTS, IT'S NOT NECESSARILY GOING TO STOP SOIL FROM SHIFTING, RIGHT? SO WE'RE NOT LIKELY GOING TO SEE ZERO LEAKS OR BUSTED PIPES, RIGHT? AND I THINK THAT'S WHERE WE HAVE TO ACKNOWLEDGE THE SHARED RESPONSIBILITY WHEN IT COMES TO THE PLANNING AND SA TOMORROW PLAN AS WELL AS OUR SUSTAINABILITY GOALS, WITH THE CLIMATE ADAPTATION PLAN, HOW CAN WE ENSURE WE'RE LOOKING AT WHERE OUR HEAT ISLANDS ARE AND HOW CAN WE ENSURE WE'RE DECREASING THE AMOUNT OF HEAT -- ESPECIALLY IN THE URBAN CORE. IN 2023 I REMEMBER SEEING SO MANY BUSTED PIPES AND IT WAS INFURIATING. OUR CONSTITUENTS WERE CALLING ABOUT IT AND Y'ALL WERE DOING THE BEST Y'ALL COULD BUT JUST WANT TO HIGHLIGHT THE IMPORTANCE OF US BEING MINDFUL IN TERMS OF HOW WE NEED TO MOVE FORWARD WITH THE CLIMATE ADAPTATION PLAN. AND THEN OF COURSE I KNOW YOU ALL PLAY A ROLE IN THOSE CONVERSATIONS, BUT HOW CAN WE MINIMIZE THE HEAT. I APPRECIATE YOU PROVIDING MORE CONTEXT IN TERMS OF THE OLDER PIPES, AND THAT DOESN'T NECESSARILY MEAN THEY NEED TO BE REPLACED. I WOULD ALSO LIKE TO SEE, WITH THOSE 50-YEAR-OLD PIPES IN PARTICULAR, WHERE ARE THEY THROUGHOUT THE CITY, JUST SO I CAN HAVE AN UNDERSTANDING. AGAIN, I APPRECIATE THE CLARIFICATION BECAUSE MY NEXT QUESTION WAS GOING TO BE WHAT IS THE PLAN FOR MAINTENANCE AND/OR TO REPLACE THOSE PIPES. MY UNDERSTANDING, IF I HEARD CORRECTLY, IF THEY'RE NOT SEEN TO BE AS VULNERABLE, THEY'RE NOT SET TO BE REPLACED. 
          >> PUENTE: CORRECT. WE WANT TO GO AFTER THE WORST ONES FIRST. 
          JUST LIKE THE CITY RATES THEIR STREETS, WE RATE OUR PIPES. 
          >> CASTILLO: APPRECIATE THAT CLARIFICATION. IN TERMS OF THE RATE INCREASE, I APPRECIATE THE BREAKDOWN IN TERMS OF WHERE YOU ALL WOULD INVEST THOSE DOLLARS FOR REHABILITATION AS WELL AS WATER DELIVERY. MY CONSTITUENT SERVICES TEAM HAD A COUPLE OF QUESTIONS AND RECOMMENDATIONS. WOULD THIS BE AN OPPORTUNITY AS WELL TO INCREASE THE AMOUNT OF ASSISTANCE THAT WE CAN PROVIDE OUR CONSTITUENTS THROUGH UTILITY ASSISTANCE AND THE UPLIFT PROGRAM OR PROJECT AQUA? 
          >> PUENTE: IT'S A MATTER OF BUDGET IMPORTANCE, BUDGET PRIORITIES . 
          WE FEEL THAT UNFORTUNATELY WE LIVE IN A CITY THAT HAS A LOT OF POVERTY IN IT, A LOT OF GENERATIONAL POVERTY IN IT. NOT A LOT OF HIGH INCOME. 
          [02:05:03]
AND SO WE NEED TO HAVE A MORE ROBUST PROJECT. DOUG EVANSON, OUR CFO KNOWS, OUR BOARD KNOWS THAT THIS IS VERY IMPORTANT. WE WILL SEE AN INCREASE IN BUDGETED AMOUNTS FOR THESE PROGRAMS. AND I THINK OUR BOARD WILL ACCEPT THAT AND APPROVE THAT. THEY WANT IT TOO. 
          >> CASTILLO: I THINK AS CONVERSATIONS MOVE FORWARD WITH THE RATE INCREASE, THOSE NUMBERS WOULD BE HELPFUL. I'M GRATEFUL FOR TERESA CASTILLO, WHO IS OUR LIAISON WITH SAWS. WE HAVE 5,000 ACCOUNTS SIGNED UP FOR THE UPLIFT PROGRAM AND 700 FAMILIES THAT HAVE RECEIVED UTILITY ASSISTANCE. GRATEFUL FOR YOUR TEAM BEING PRESENT IN OUR FIELD OFFICES AND RESPONSIVE TO COMMUNITY MEMBERS TO CONNECT THEM TO THOSE PROGRAMS. AS DR. KAUR MENTIONED THERE'S OPPORTUNITY IN TERMS OF ELIGIBILITY CRITERIA FOR US TO VISIT HOW CAN WE EXPAND THAT. BECAUSE IN D5 THERE ARE AREAS THAT ARE EXPERIENCING GENTRIFICATION SO IT'S FOLKS ON FIXED INCOME BUT THE VALUE IS INCREASING. WE'RE SEEING A NEED FOR MORE ASSISTANCE. 
          IF WE COULD REEVALUATE THAT CRITERIA, WE WOULD BE ABLE TO PROVIDE MORE ASSISTANCE 
          TO FAMILIES. >> PUENTE: UNDERSTOOD. THANK YOU. 
          >> CASTILLO: AND THEN APPRECIATE THAT. AND LASTLY, I SHARE THE SIMILAR SENTIMENT REGARDING THE DATA CENTERS AND CRYPTO MINING. 
          THESE ARE VERY WATER AND ELECTRIC-INTENSIVE ENTITIES THAT OFTEN EMPLOY VERY FEW PEOPLE. SO WHEN WE'RE TALKING ABOUT OUR LIMITED RESOURCES LIKE WATER, IS THIS SOMETHING THAT WE SHOULD BE INCENTIVIZING, YOU KNOW, WHEN WE'RE HAVING TO POTENTIALLY EXPAND ACCESS TO WATER. 
          SO WITH THAT BEING SAID, I KNOW YOU ALL FEEL CONFIDENT IN HAVING ENOUGH RESOURCES TO SUPPORT THIS INDUSTRY BUT I WOULD ENCOURAGE, ON THE POLICY SIDE AND/OR RATE INCREASE SIDE, HOW WE'RE NOT NECESSARILY INCENTIVIZING THEM TO USE OUR LIMITED 
          WATER RESOURCES. >> PUENTE: WE DON'T. WE HAVE A FLAT RATE FOR ANYBODY THAT USES WATER FOR WHATEVER PURPOSE. AND SO WE DO NOT PROVIDE INCENTIVES. AS A MATTER OF FACT, IMPACT FEES, WE CANNOT WAIVE THEM. 
          COUNCIL CAN WAIVE THEM. IT'S IN YOUR PURVIEW TO DO THAT OR NOT DO THAT. 
          WHAT I WAS SAYING IS IF THEY ARE HERE AND THEY'RE IN OUR SERVICE AREA, WE CAN PROVIDE THE WATER. AS A MATTER OF FACT, WE'RE OBLIGATED TO PROVIDE THAT 
          WATER. >> CASTILLO: THANK YOU. I APPRECIATE THAT BECAUSE IT BRINGS ME TO MY LAST POINT, RIGHT? WITH THE CONVERSATION ABOUT THE RATE INCREASE, I'M HOPEFUL THAT YOU ALL MAINTAIN THE CURRENT RATE STRUCTURE YOU HAVE. YOU'RE PAYING FOR WHAT YOU USE, RATHER THAN INCENTIVIZING FOR THE MORE YOU USE. I'M HOPEFUL, AS THE CONVERSATIONS MOVE FORWARD, THAT THAT'S THE TIERED STRUCTURE WE CONTINUE TO MOVE FORWARD AND APPROVE BECAUSE I THINK IT SERVES AS A MODEL FOR ALL UTILITIES ON 
          HOW RATES SHOULD BE TIERED. >> PUENTE: WHAT WE HAVE FOUND OUT -- THIS HAS BEEN IN PLACE THROUGH ONE AND A HALF SUMMERS NOW. AND WE HAVE SEEN PEOPLE PULLING BACK FROM USING 20,000 GALLONS. IT HAS SENT A SIGNAL AND IT'S BEING HEARD AND THERE'S REACTION TO THAT SIGNAL. SO THEY'RE USING LESS WATER. 
          >> CASTILLO: THANK YOU. I APPRECIATE THAT. AND THEN AND WHAT HE MENTIONED WAS PARTICULARLY WITHIN THE HISTORIC WESTSIDE THERE'S A LOT OF HARD WATER. AND HE'S ASKING 50-YEAR-OLD PIPE THAT'S NOT NECESSARILY IN NEED OF REPLACEMENT, ARE THERE OPPORTUNITIES AND/OR INCENTIVES FOR SAWS' PAYERS TO GET PLUGGED INTO A REBATE SYSTEM FOR WATER FILTRATION SYSTEMS THROUGH SAWS AVAILABLE? 
          >> PUENTE: WE DO NOT HAVE A CURRENT PROGRAM FOR SUBSIDIZING THE PURCHASE OF 
          WATER SOFTENERS, NO. >> CASTILLO: TYPICALLY, LIKE FOR EXAMPLE WITH FRANCISCO, WHO E-MAILED US ABOUT HIS AREA. HOW WOULD HE GO ABOUT REQUESTING THAT HIS WATER QUALITY BE TESTED? FOR EXAMPLE, HE SAID HIS 
          WATER -- >> PUENTE: GIVE US THE ADDRESS. 
          WE HAVE OUR OWN LABORATORY. WE DO TESTING HUNDREDS OF TIMES A DAY ON THE WASTEWATER SIDE AND THE WATER SIDE. WE DO GET OCCASIONAL REQUESTS FROM INDIVIDUALS THAT THEY WANT TO KNOW ALL THE TYPE OF WATER WE HAVE AND THE CHEMICAL COMPONENTS OF IT. JUST GIVE US THE ADDRESS AND 
          WE'LL DO IT. >> CASTILLO: PERFECT. THANK YOU. 
          I APPRECIATE THAT. THANK YOU, MAYOR. >> MAYOR JONES: CHAIR 
          MUNGIA. >> MUNGIA: THANK YOU FOR YOUR PRESENTATION AND ALL THE INFORMATION. YOU KNOW, GOING BACK TO CLAY SOILS, THAT'S A HUGE PROBLEM IN MY DISTRICT, OF COURSE. SO DO YOU HAVE WAYS OF ADDRESSING PIPES THAT ARE IN CLAY SOIL TO HELP ADDRESS THAT ISSUE OR IS IT JUST KIND OF WE HAVE TO HOPE THAT 
          THE WEATHER'S NOT AS BAD AS IT WAS IN THAT YEAR? >> PUENTE: LUCKILY THE PIPES THAT ARE BREAKING THAT ARE IN CLAY SOILS -- IF I'M WRONG, LET ME KNOW. 
          THAT ARE IN CLAY SOILS AND GET REPLACED, THAT WAS OF A DIFFERENT PIPE MATERIAL. 
          [02:10:05]
SO NOW IN THE CLAY SOILS, IT'S A HIGHER-GRADE TYPE OF PIPE. 
          IT'S A MORE DURABLE PIPE, LONGER LIFE SPAN PIPE. >> MUNGIA: THIS MIGHT BE MORE OF A QUESTION FOR THE CITY, BUT IS THAT PIPE MATERIAL NOW REQUIRED FOR 
          CONSTRUCTION IN CLAY SOIL AREAS? >> PUENTE: IT IS OUR OWN 
          SPECIFICATIONS. >> MUNGIA: YOURS BUT I WAS ASKING THE CITY IS THAT A 
          REQUIREMENT FOR DEVELOPMENT. >> WALSH: WE'LL DOUBLE CHECK, BUT I DON'T BELIEVE WE SPECIFY IN THE CODE. 
          BECAUSE ANY WORK, AS ROBERT DESCRIBED, IF THERE'S A DEVELOPMENT OR COMMERCIAL DEVELOPMENT, THEY ARE FUNDING BUT THEY ARE CONSTRUCTING. 
          >> MUNGIA: OF COURSE. >> PUENTE: YES. THE DEVELOPER BUILDS THE SYSTEM OF THEIR NEW NEIGHBORHOOD BUT WE HAVE INSPECTORS THERE. 
          THEY KNOW THE TYPE OF PIPE THAT WE WILL ACCEPT AND THE QUALITY OF ITS INSTALLATION. 
          ALL THAT IS TAKEN CARE OF. >> MUNGIA: THAT INCLUDES THE LATERAL THAT GOES FROM 
          THE MAIN LINE TO THE HOME? >> PUENTE: YES. >> MUNGIA: JUST WANTED TO MAKE SURE OF THAT. IN YOUR CAPITAL PROGRAM, DO YOU HAVE PLANS FOR FUTURE 
          DEVELOPMENT, EXPANSION OF PURPLE PIPE? >> PUENTE: NO. 
          THE MAINTAINING OF IT, YES . THAT'S AN O&M COST. BUT THE EXPANSION, THAT'S SOMETHING THAT OUR COUNCILWOMAN IS VERY INTERESTED IN. 
          >> BUT AND THE WHOLE QUESTION IS WHO PAYS FOR IT. DO OUR CURRENT RATEPAYERS PAY FOR IT OR IF SOMEBODY WANTS RECYCLED WATER, RIGHT NOW THEY PAY FOR IT. 
          >> MUNGIA: SO MAYBE IT'S A CONVERSATION OF HOW WE CAN EXPAND THAT PROGRAM. 
          BECAUSE AS PEOPLE HAVE BEEN TALKING ABOUT THESE DATA CENTERS, THEY'RE NOT GOING TO STOP COMING. AND, YOU KNOW, I COULD EVEN SEE US POTENTIALLY DOING A REQUIREMENT, IF YOU HAVE A DATA CENTER OR IF YOU HAVE SUCH A HIGH-USE FACILITY, YOU MIGHT BE REQUIRED AT SOME POINT TO HAVE PURPLE PIPE BECAUSE IT'S TOO MUCH TO TAKE IN POTABLE WATER THAT WE ALL HAVE TO DRINK. AND SO MAYBE IN A FUTURE DAY WE CAN GET TOGETHER AND TALK ABOUT THAT OR HAVE A PRESENTATION ABOUT THAT, WHAT THAT WOULD LOOK LIKE FOR YOU ALL. WE HAVE A GOOD AMOUNT ON THE SOUTHWEST AND FAR WEST SIDE OF TOWN SO PEOPLE IN OUR DISTRICTS GET TO UTILIZE THAT. BUT MORE PEOPLE SHOULD BE ABLE TO UTILIZE THE PURPLE 
          PIPE PROGRAM. >> PUENTE: DEFINITELY. THERE'S A LOT OF REASONS WHY WE WANT WANT TO EXPAND THE PURPLE PIPE SYSTEM. WE HAVE PLENTY OF WATER THAT WE CLEAN UP AND CAN USE. THERE'S A LOT OF CAPACITY THERE. 
          AND MAYBE THAT IS SOMETHING THAT SAWS SHOULD PAY FOR IS PART OF ECONOMIC DEVELOPMENT, PART OF ENCOURAGING USE OF THIS WATER. 
          AND IT ENDS UP BENEFITING THE AQUIFER AND THE POTABLE THAT WE HAVE. 
          >> MUNGIA: IT COULD ALSO RELEGATE CERTAIN INDUSTRIES IN THE CERTAIN AREAS OF TOWN THAT WE WANT TO HAVE A GRASP ON, WHICH IS GOOD. YOU TALKED EARLIER ABOUT NOT ALL OF THE OLD PIPES ARE THE MOST VULNERABLE PIPES. BUT HAVE YOU MAPPED OUT -- SO YOUR TIER OF THE MOST VULNERABLE PIPES TO THE LEAST VULNERABLE PIPES IN 
          YOUR SYSTEM? >> PUENTE: YES. ON THE WATER AND SEWER SIDE. 
          >> MUNGIA: MAYBE YOU COULD PROVIDE THAT BACKGROUND SO WE COULD VISUALIZE WHERE 
          YOU'RE STARTING OFF AND WHERE YOU COULD END UP. >> PUENTE: I'M GOING TO SEND THIS TO ANDY SEGOVIA FIRST BECAUSE IT'S SOMETHING WE DON'T WANT OUT IN THE PUBLIC. HE'LL PUT HIS STAMP ON IT THAT HAS HIS CONFIDENTIALITY 
          ON IT. IS THAT OKAY, ANDY? >> 
          >> MUNGIA: GOOD TO KNOW. OF COURSE I AGREE WITH THE PROGRAMMING, POSSIBLE CHANGES TO THE PROGRAMMING TO HAVE MORE AFFORDABILITY. TERI AND CECILIA DO A LOT OF GREAT WORK FOR US. WE HAVE SEEN SOME EXEMPTIONS TO RULES WHEN WE HAD CERTAIN TOUGH CASES TO GO THROUGH. I APPRECIATE YOUR TEAM'S WORK ON THAT. 
          AS WE CONTINUE TO RAISE RATES HERE IN SAN ANTONIO, SO MANY OF OUR SENIORS THAT USE THIS PROGRAM ARE JUST ON A FIXED INCOME. SO WILL JUST NEVER SEE THEIR INCOME GROW AT THE SAME TIME THAT WATER USE IS GETTING MORE EXPENSIVE, AS WELL AS ENERGY USAGE. I WOULD APPRECIATE SOME WORK ON THAT. LONG TERM, MY OPINION IS WE HAVE TO RECLASSIFY WHO A DEVELOPER IS. I DON'T THINK THEY'RE ALL THE SAME IN SAN ANTONIO. 
          IF YOU HAVE AN INDIVIDUAL BUILDING A HOME, WANTING TO PUT WATER AT THEIR HOME, OF COURSE THEY HAVE TO PAY FOR THAT. IT'S THE SAME RULE AS IF 
          [02:15:02]
SOMEONE IS BUILDING AN ENTIRE SUBDIVISION. I THINK THERE SHOULD BE VARYING DEGREES OF THAT. OBVIOUSLY, THAT MEANS SAWS PAYS FOR THAT WHICH MEANS RATEPAYERS PAY FOR SOME OF THAT BUT I THINK THAT'S IMPORTANT FOR SOME FOLKS THAT ARE BUILDING THEIR HOME. I HAD A GREAT EXAMPLE OF A GUY ON ZARZAMORA HAD A BUSINESS CONTRACT WITH THE CITY, DID NOT HAVE RUNNING WATER. HE USED A WELL. THE LINE WAS FOUR PROPERTIES DOWN. HE WAS GOING TO HAVE TO PAY FOR EVERYTHING. 
          HE FOUND ANOTHER SOLUTION, THANKFULLY, BUT THERE'S AN EXAMPLE OF JUST A SMALL BUSINESS GUY GRADUATED FROM SOUTH SAN HIGH SCHOOL AND COULDN'T GET RUNNING WATER TO HIS BUSINESS JUST BECAUSE HE WAS TREATED AS A DEVELOPER AND HE WAS GOING TO HAVE TO PAY FOR THE COST OF THE ROAD AND THE EXTENSION. 
          AND EVERYBODY IN BETWEEN THAT WAS GOING TO HAVE THE BENEFIT TO TAP IN WITHOUT ANY COST ASSOCIATED. SO I THINK THERE ARE WAYS TO GET SMARTER ON OUR END. 
          >> PUENTE: THAT CONCEPT WORKS GREAT FOR TRUE DEVELOPERS. 
          IT DOES CAUSE THOSE PROBLEMS YOU MENTIONED WHEN YOU HAVE THAT KIND OF SITUATION. 
          THERE'S A LOT OF, FOR EXAMPLE, OF VACANT LOTS, VACANT PROPERTIES IN THE OLDER NEIGHBORHOODS WHERE A HOUSE MAYBE BURNED DOWN OR GOT CONDEMNED. 
          IF SOMEBODY B BUYS THAT LOT AND WANTS TO BUILD A NEW HOME, THEY DON'T HAVE TO PAY FOR CONNECTION BECAUSE WHOEVER HAD THAT PROPERTY INITIALLY ALREADY PAID THAT. 
          IT'S A ONE-TIME CONNECTION FEE. >> MUNGIA: YEAH, THAT'S TRUE. BUT ON THE SOUTH SIDE WHERE WE HAD LARGE SWATHS OF LAND THAT HAD ONE CONNECTION AND BEEN SUBDIVIDED, THAT MAY NOT EXIST THERE. 
          ESPECIALLY ON MY SIDE OF TOWN WHERE YOU HAD BEXAR MET AS THE PRIMARY PROVIDER FOR SO MANY YEARS. THAT ORGANIZATION JUST WASN'T THERE ON THE MAP. 
          >> PUENTE: AND THE KEY TO THAT IS TO MAKE AN UNDERSTANDING OF THAT CIRCUMSTANCE VERSUS BUILDING A SUBDIVISION AND WHAT THAT MEANS AND WHAT YOUR 
          SITUATION -- THAT PARTICULAR SITUATION IS. >> MUNGIA: THERE'S GOING TO BE SOME SHADES OF DIFFERENCES JUST TO HELP PEOPLE OUT. 
          I APPRECIATE IT. THANK YOU. >> PUENTE: SURE. 
          >> MAYOR JONES: COUNCILWOMAN MEZA GONZALEZ. >> GONZALEZ: THANK YOU. 
          THANK YOU, ROBERT FOR THE PRESENTATION. JUST A COUPLE OF QUICK QUESTIONS, REALLY ECHOING WHAT COUNCILMEMBER VIAGRAN ASKED FOR, JUST A BREAKDOWN OF THE DATA YOU HAVE ON THOSE PIPES AND THE THAT WOULD BE VERY HELPFUL. AND ALSO ON THE SLIDE 13 ON THE WORST MAINS IN THE SYSTEM, A BREAKDOWN OF WHERE THOSE ARE WOULD BE HELPFUL. AND, AGAIN, JUST ECHOING COUNCILWOMAN CASTILLO'S POINT OF THAT CURRENT RATE STRUCTURE THAT YOU HAVE IN PLACE, IF THAT CONTINUES, WOULD BE SUPPORTIVE OF THAT. AND REALLY, YESTERDAY I WENT TO AN HOA MEETING, SHAVNO FOREST. THEY HAVE THEIR OWN METER. 
          THEY'RE INTERESTED IN CAPPING IRRIGATION. >> PUENTE: TO NOT USE THEM? IT'S NOT AN EXISTING PROGRAM BUT WE HAVE CUSTOM-MADE 
          CONSERVATION PROGRAMS. >> GONZALEZ: THAT THE NEIGHBORHOOD ASSOCIATION CAN 
          USE? >> PUENTE: WE WOULD HAVE TO TALK TO THEM, GET DETAILS AND WHY THEY WANT TO DO IT, THE RETURN ON INVESTMENT, AND THEN ULTIMATELY WE COULD 
          GET INVOLVED IN THAT, YES. >> GONZALEZ: PERFECT. >> WE DEFINITELY DO HAVE -- THEY'RE INCLUDED RIGHT NOW AND NOW WITH THE AMI PROGRAM. 
          OBVIOUSLY, THEY'RE ABLE TO SEE THEIR USAGE, EVEN IF IT'S ON A MEDIAN AND THEY'RE ABLE TO SEE LEAKS QUICKER. WE HAVE IMPLEMENTED THAT IN THE LAST COUPLE OF MONTHS. 
          WE HAVE RECENTLY ALLOWED THEM TO, IF THEY CUT AND CAP THEIR IRRIGATION SYSTEM, WE'RE EXCITED ABOUT IT AND WE WILL PROVIDE THEM WITH THAT INCENTIVE. 
          >> GONZALEZ: AWESOME. MAKE SURE THAT WE CONNECT Y'ALL TO CHAVANEAUX FOREST. 
          AND WHAT COUNCILMEMBER SPEARS MENTIONED, I HEARD FROM RESIDENTS AFTER THEY GET THEIR NEW METERS, THEIR BILL IS SIGNIFICANTLY HIGHER. 
          IS THERE ANY TRUTH TO THE OLD METER RUNNING SLOWER AND IMPACTING THAT? 
          >> PUENTE: OLD METERS -- CUSTOMERS WERE USING MORE WATER THAN WHAT THEY PAID FOR. NOW THAT WE HAVE THE AMI METER IT'S A TRUE READING AND IT BETTER IDENTIFIES HOW MUCH WATER SAWS IS ACTUALLY SELLING TO GET A BETTER IDEA 
          OF WHAT OUR LOST WATER NUMBERS ARE. >> GONZALEZ: OKAY. 
          I NOTICED TOO ON SLIDE 17 THE SAWS' NON-REVENUE WATER TARGETS. 
          IT SAID 12-YEAR PLAN. IS THERE ANY WAY TO REDUCE THAT PLAN BY A QUARTER? 
          >> PUENTE: YES. IT'S A MATTER OF PRIORITY AND MONEY. 
          SO, YES. FOR EXAMPLE, SOMEONE MENTIONED THAT THEY SAW -- 
          >> GONZALEZ: MONEY OR PRIORITY? >> PUENTE: BOTH. 
          [02:20:02]
I THINK IT WAS COUNCILWOMAN CASTILLO, OUR EMPLOYEE COUNT THAT WENT UP WAS BOOTS ON THE GROUND. WE CAN HIRE MORE CREWS TO BE MORE RESPONSIVE TO LEAKS AND THAT NUMBER WILL IMPROVE. WE HAVE SOME TECHNOLOGY THAT WE'RE DOING PILOT PROGRAMS ON. IF THOSE COME TO FRUITION, OBVIOUSLY THE PROGRAM ITSELF WILL BE MORE EXPENSIVE BUT IT WILL DRIVE THOSE NUMBERS DOWN. 
          SO THAT'S ASPIRATIONAL. OBVIOUSLY, 2035 TERM LIMITS, NONE OF YOU WILL BE HERE. 
          BUT WE CAN GET IT DONE. >> GONZALEZ: 2029? JUST KIDDING. 
          THE STATE DOLLARS THAT HAVE BEEN ALLOCATED FOR WATER RESOURCES IN THE LAST TWO SESSIONS, CAN ANY OF THAT BE USED FOR THIS NON-REVENUE WATER PLAN? 
          >> PUENTE: YES, AND IT HAS. WE DO WHAT WE CAN TO GET OUR SHARE OF STATE FUNDING. UNFORTUNATELY, WE ARE SO SUCCESSFUL THAT A LOT OF THAT MONEY IS GEARED TOWARDS UTILITIES THAT NEED A LOT OF HELP. 
          SO SOMETIMES WE DON'T MEET THOSE METRICS OF WHAT WE QUALIFY FOR. 
          A SIMPLE EXPLANATION OF WATER CONSERVATION. DALLAS HAS A HIGH PER CAPITA USE SO IF THEY WANT TO SPEND MONEY ON WATER CONSERVATION, IT'S EASIER FOR THEM TO GET MONEY FROM THE STATE THAN IT IS FROM US BECAUSE WE ALREADY ARE VERY LOW. 
          >> GONZALEZ: OKAY. I THINK -- >> PUENTE: BUT WE DO GET 
          OUR SHARE OF -- >> GONZALEZ: DO YOU HAVE A ROUND NUMBER? 
          >> GOOD AFTERNOON. I DON'T HAVE AN EXACT NUMBER BUT WE HAVE BILLIONS AND BILLIONS OF DOLLARS -- WE'RE ONE OF THE BIGGEST BORROWERS OF WATER DEVELOPMENT BOARD MONEY OVER THE PAST DECADE, DECADE AND A HALF. JUST RECENTLY WE JUST GOT SOME MONEY FROM THE WATER DEVELOPMENT BOARD FOR OUR COPPER PROGRAM. 
          THAT WAS $12 MILLION TO RUN SOME OF THE THINGS WE DO IN THAT PROGRAM. 
          IT'S LITTLE THINGS HERE AND THERE BUT IT ALL ADDS UP OVER TIME. 
          >> GONZALEZ: THANK YOU FOR THAT. I THINK THAT'S IT FOR ME. 
          THANK YOU SO MUCH. >> MAYOR JONES: COUNCILMAN WHYTE. 
          >> CHAIRWOMAN ASKED ME TO MAKE ONE LAST CLARIFICATION. SO THE COST OF SERVICE STUDY THAT WE ARE DOING, WE ARE NOT LOOKING AT THE RATE DESIGN STRUCTURE. 
          SO OUR EXISTING RATE DESIGN IS GOING TO STAY IN EFFECT. SO THE TIERED RATE STRUCTURE THAT WE HAVE TODAY IS GOING TO BE HERE TOMORROW, UNTIL WE DO THE NEXT FORMAL RATE 
          STUDY, WHICH IS PROBABLY NOT UNTIL 2027 OR THEREABOUTS. >> MAYOR JONES: COUNCILMAN 
          WHYTE. >> WHYTE: THANK YOU, MAYOR. 
          THIS IS FOR EITHER THE CHAIRWOMAN OR YOU, ROBERT. WHEN WAS THE LAST TIME THAT 
          SAWS DID AN AUDIT, INTERNAL AUDIT OF THEIR OPERATIONS? >> PUENTE: WELL, WE DO AN 
          INTERNAL AUDIT ALL THE TIME. WE HAVE -- >> WHYTE: HOLD ON. 
          I'M SORRY. WHEN I SAY INTERNAL, HAD A THIRD-PARTY COME IN AND TAKE A LOOK AT WHAT YOU'RE DOING RIGHT, WRONG, EFFICIENCIES, INEFFICIENCIES. 
          >> PUENTE: YOU'RE TALKING ABOUT AN OPERATIONAL AUDIT. >> I GUESS THE LAST FORMAL WAS RIGHT AFTER URI. I ASKED ROBERT TO BRING IN ONE OF THE ENGINEERING FIRMS THAT WE USE TO LOOK AT OUR READINESS PROCESS. AND TO 
          >> AND TO LOOK AT THE SPECIFICS CENTERED AROUND URI. 
          WE ACTUALLY STARTED THAT PROCESS BEFORE THE CITY DID TO LOOK ACROSS THE BOARD. AND THAT'S BEEN -- WE'VE INCORPORATED THOSE RECOMMENDATIONS INTO OUR ANNUAL READINESS FOR OUR OPERATIONS. 
          BUT BEYOND THAT, I DON'T KNOW THAT WE'VE DONE ANY OTHER FORMAL OPERATIONS 
          REVIEW. >> WHYTE: SO WHAT'S YOUR FEELING ABOUT MAYBE NOW BEING THE TIME FOR -- FOR -- AND I KNOW THIS IS PROBABLY A BOARD DISCUSSION, I GUESS, FOR SAWS TO UNDERGO A -- AGAIN, A COMPLETE OPERATIONAL AUDIT OR A THIRD-PARTY -- I KNOW -- I THINK WE HAD ONE OF THOSE DONE FOR CPS. WHEN WAS THAT, 2021? 2022 TIME FRAME. 
          SOMETHING WHERE A THIRD PARTY COMES IN, REVIEWS WHAT'S GOING ON AND CAN GIVE YOU P GUYS, AND US, AN IDEA OF WHAT SAWS CAN DO BETTER, WHAT 
          THEY'RE DOING WELL, THINGS LIKE THAT. >> THE BOARD HAS NOT HAD THAT DISCUSSION SINCE WE IMPLEMENTED THE RECOMMENDATIONS FROM, I BELIEVE IT WAS BLACK AND BEACH WITH URI,  SO WE CAN CERTAINLY DISCUSS THAT AND SEE HOW WE WOULD NEED TO INCORPORATE THAT. 
          >> WHYTE: YEAH, I APPRECIATE THAT. I DON'T KNOW WHAT MY COLLEAGUES THINK, BUT I THINK THAT WOULD BE REALLY HELPFUL, ESPECIALLY NOW WHEN WE'RE TALKING ABOUT FURTHER RATE INCREASES. 
          YOU KNOW, BECAUSE AS SOME OF MY COLLEAGUES HAVE STATED, THE CITIZENS ARE ALWAYS BEING ASKED TO PAY MORE. YOU KNOW, AND JUST LIKE WE HERE AT THE CITY ARE DOING THESE BUDGET REVIEWS AND, YOU KNOW, WE'RE MOVING TO A -- YOU KNOW, A DIFFERENT BUDGETING MODEL HERE AS WELL, AND EVEN JUST WHAT WE JUST DID IN THIS LAST BUDGET PROCESS, I THINK 
          [02:25:03]
WE FOUND 25 MILLION PLUS IN INEFFICIENT SPENDING THAT WE WERE ABLE THEN TO REDIRECT OTHER PLACES. I THINK WHEN YOU'RE ASKING CITIZENS TO PAY MORE, IT'S PERHAPS EASIER TO DO SO IF AN AUDIT LIKE THIS, THAT I'M SUGGESTING, HAS BEEN DONE AND WE CAN TELL THE PEOPLE, LISTEN, THEY'RE GOING BACK, THEY'RE REVIEWING WHAT THEY'RE DOING, THEY'RE TRYING TO BE AS EFFICIENT AS POSSIBLE, BUT, YOU KNOW, MAYBE WE STILL NEED 
          THE -- >> SURE. NOW, I CAN'T STAND HERE TODAY AND COMMIT THAT WE WILL HAVE AN AUDIT COMPLETED WHEN WE COME 
          BACK WITH THIS NEXT RATE REQUEST. >> WHYTE: YEP. 
          >> THAT WOULD BE NEARLY IMPOSSIBLE. >> WHYTE: RIGHT. 
          >> BUT I WILL ADD THERE ARE ADDITIONAL EFFORTS, AS I'M STANDING HERE I'M THINKING ABOUT THE ENERGY EFFICIENT -- WE OPERATE, SO THAT'S ONGOING IN ADDITION TO THE WORK THAT WE'VE DONE WITH BLACK AND BEACH. AND THEN WE HAD AN OPPORTUNITY TO LOOK AT OUR METER DEPLOYMENT, BECAUSE WE WERE TOTALLY RELIANT ON AN OUTSIDE ENTITY TO PROVIDE THAT, AND QUITE FRANKLY, OUR EMPLOYEES WERE OBSERVING WHAT WAS HAPPENING AND THEY FOUND A DIFFERENT WAY TO DO IT. 
          AND WE BROUGHT THAT IN-HOUSE. AND SO THE MAJORITY OF THAT WORK HAS BEEN IMPLEMENTED IN-HOUSE MORE EFFICIENTLY, QUICKER. 
          AND I DON'T KNOW ABOUT CHEAPER, BUT MORE EFFICIENTLY AND QUICKER AND WE'RE HAVING LESS OUTSIDE INTERACTION. WE DO HAVE A VARIETY OF 
          WAYS, BUT WE WILL LOOK AT THE OVERALL OPPORTUNITY. >> WHYTE: THANK YOU. 
          I APPRECIATE THAT. THERE WAS A SLIDE UP THERE TALKING ABOUT, I GUESS, BACK TO ROBERT, ON, YOU KNOW, WHAT WE'RE PAYING -- WHAT OUR RESIDENTS ARE PAYING, YOU KNOW, THEIR TOTAL WATER UTILITY BILL IN RELATION TO SOME OF THE OTHER CITIES.  I'D LOVE TO SEE THAT COMPARISON IN TERMS OF WHAT -- BASED ON OUR RESIDENTS' MEDIAN INCOME, RIGHT, WHERE ARE WE? WHAT PERCENTAGE OF OUR FOLKS' PAYCHECKS ARE GOING TOWARDS WATER AS OPPOSED TO OTHER CITIES? IT'S SIMILAR THAT I ASKED OF CPS A YEAR AGO. 
          >> SURE. >> WHYTE: I WANT TO THANK COUNCILWOMAN KAUR FOR, AGAIN, PRESSING -- I GUESS ALONG WITH COUNCILWOMAN ALDARETE GAVITO ON THIS, MAKING SURE WE HAVE COORDINATION WITH PUBLIC WORKS ON THESE CAPITAL PROJECTS. AND I KNOW THAT, LIKE THE COUNCILWOMAN STATED, OUR RESIDENTS DO NOT CARE WHAT NAME IT IS ON THE SIDE OF THE TRUCK, THEY -- WHEN CONSTRUCTION'S GOING SLOWLY, THEY JUST BLAME THE CITY. AND I KNOW IT WAS LAST YEAR, OR I GUESS AT THE BEGINNING OF THIS YEAR, WE ENTERED THAT MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND PUBLIC WORKS. HOW IS THAT GOING? HAVE WE HAD PROJECTS THAT HAVE BEEN SUBJECT TO THAT MEMORANDUM OF UNDERSTANDING, AND ARE THINGS WORKING SMOOTHER NOW? 
          >> I THINK THINGS ARE WORKING SMOOTHER NOW, JUST BECAUSE OF THE PUBLICITY THAT SOME OF THESE PROJECTS HAVE HAD, THE CONVERSATIONS WE'VE HAD WITH COUNCIL, CONVERSATIONS, I'M SURE, COUNCIL HAS HAD WITH CITY STAFF. I'VE MET WITH ERIK AND HIS TEAM AT DIFFERENT TIMES OVER SOME OF THESE ISSUES, SO IT'S WORKING BETTER. 
          I DO WANT TO EMPHASIZE, THOUGH, THAT PUBLIC WORKS AND CITY -- AND SAWS, 99% OF THE TIME, YOU'LL NEVER HEAR ABOUT THOSE PROJECTS BECAUSE THEY WENT VERY WELL. YOU WILL HEAR ABOUT THE ONES YOU'VE HEARD ABOUT, ALAMO, ST. MARY'S, BROADWAY, ALL HAPPEN TO BE MOSTLY IN DISTRICT ONE. BUT THOSE HOPEFULLY ARE THE OUTLIERS, BUT THOSE ARE THE ONES THAT TEACH US WHATNOT TO DO AND HOW BETTER TO IMPROVE, SO I THINK THEY ARE WORKING. FOR EXAMPLE, I DON'T KNOW, IF THIS IS STILL -- THE CITY STILL WANTS THIS WITH THIS NEW PUBLIC DIRECTOR THAT YOU HAVE, BUT WE HAD BEEN WORKING WITH PUBLIC WORKS AS TO WHAT THE NEXT PROJECT IS GOING TO BE, MAKE SURE EVERYBODY'S IN LINE, KNOWS WHAT -- AND IDENTIFYING THESE HIGH PROBABILITY LOCATIONS, HIGH PROBABILITY FOR. 
          >> WALSH: RISK. >> PUENTE:  -- RISK, ATTENTION, IDENTIFYING THOSE AND MAKING SURE EVERYBODY'S ONLINE WITH THAT PARTICULAR PROJECT. 
          IT'S WORKING VERY WELL, HOPEFULLY YOU DON'T KNOW IT'S WORKING VERY WELL BECAUSE IT IS WORKING VERY WELL. OTHERWISE YOU'D GET -- 
          THERE WOULD BE -- YOU'D KNOW ABOUT IT. >> WALSH: AND COM COUNCILMAN, THE PROJECTS THAT COUNCILWOMAN KAUR WAS TALKING ABOUT IS PROBABLY OUR FIRST EXPERIMENT -- I SHOULDN'T CALL IT AN EXPERIMENT, BUT DELIBERATE ADJUSTMENT BASED ON THAT EARLIER BOARD AND 
          COUNCIL-APPROVED INTERLOCAL AGREEMENT. >> WHYTE: GOOD. 
          WELL, I'D LOVE TO SEE, YOU KNOW, HOW IT GOES, BECAUSE, AGAIN, EVERYBODY'S GOT TO BE ACCOUNTABLE HERE, RIGHT? THE CITY, SAWS, EVERYBODY 
          [02:30:03]
IS ACCOUNTABLE TO THE PUBLIC. WE NEED TRANSPARENCY IN HOW THESE PROJECTS ARE BEING PERFORMED. AS MY COLLEAGUE, COUNCILMEMBER SPEARS STATED AS WELL, WE NEED TO MAKE SURE THAT WE ARE ONLY HIRING CONTRACTORS THAT ARE ABLE TO DO THE JOB ON TIME AND ON BUDGET. WE NEED TO HIRE THESE CONTRACTORS BASED ON MERIT, BECAUSE, AGAIN, IT'S NOT FAIR TO THE RESIDENTS OF SAN ANTONIO TO DO ANYTHING LESS AND TO HAVE THESE PROJECTS -- AND NOT JUST THE RESIDENTS, BUT TO BUSINESSES AS WELL. BECAUSE AS WE KNOW, WHEN THESE THINGS TAKE TOO LONG, IT HURTS -- IT HURTS BUSINESS AS WELL. 
          >> PELAEZ: YEP. >> PUENTE: YEP. I APPRECIATE PUBLIC WORKS. THEY ALLOW SOME OF THEIR STAFF MEMBERS TO ATTEND THEIR MEETINGS ON SELECTION AND GRADING OF THESE CONTRACTORS, BECAUSE THEY'RE GOING TO BE DOING SAWS' WORK, SEWER AND WATER, CHANGING THOSE LINES OUT, AND WE KNOW FROM OUR EXPERIENCE WHO THE GOOD CONTRACTORS ARE FOR THAT PARTICULAR TYPE OF WORK AND WHO THE BAD ONES ARE. 
          AND SO, THEREFORE, WE PUT IN OUR -- WE GIVE OUR INPUT ON THOSE, WHICH IS QUITE DIFFERENT FROM DRAINAGE WORK, DIFFERENT FROM SURFACE WORK, SIDEWALK WORK AND SO THAT INTERACTION IS HAPPENING. 
          >> WHYTE: GOING -- ON SLIDE 8, 91% OF THE AMI METER INSTALLATIONS ARE COMPLETE, AND SO MY QUESTION IS, ARE WE GOING TO START SEEING OPERATIONAL EFFICIENCIES REFLECTED IN RATES? IN OTHER WORDS, WILL WE BE ABLE TO BRING RATES DOWN WITH THESE NEW METERS GOING IN? 
          ARE WE GOING TO HAVE SOME EFFICIENCIES THERE? >> PUENTE: EFFICIENCIES, YES. REMEMBER, I DID MENTION -- I CAME HERE IN 2023 AND ASKED TO LOWER THE RATES. THAT WAS BEFORE AMI. 
          WHAT I CAN TELL YOU IS AMI IS NOT GOING TO BE A REASON THAT RATES HAVE TO INCREASE. IT'S SERVING ITS PURPOSE, IT'S GIVING US A LOT MORE DATA TO BE ABLE TO BE MORE EFFICIENT, GET A BETTER HANDLE ON LOST WATER ISSUES, AND JUST A BETTER CUSTOMER AND UTILITY INTERFACE. 
          >> WHYTE: WILL THE SMART METERS -- >> 
          >> PUENTE: TIME AND USE RATE, IS THAT WHAT YOU'RE ASKING? 
          >> WHYTE: NO, I'M JUST ASKING IF THE NEW TECHNOLOGY IS GOING TO ALLOW US TO CREATE SOME EFFICIENCIES, WHICH THEN CAN BE PASSED ON TO THE 
          CONSUMER. >> RIGHT. SO, AGAIN, THEY ARE -- WE USED TO CALL OUR POSITIVE DISPLACEMENT METERS, OUR CASH REGISTERS. 
          OBVIOUSLY THESE ARE JUST MUCH ELECTRONIC, AUTOMATED, AND SO WE'RE ABLE TO DETERMINE. AND WHEN WE -- WHEN WE DID, BASED ON THE BOARD'S REQUEST, WE DID A METER TESTING PROGRAM, ALONG WITH OUR AMI METER DEPLOYMENT, AND WE WERE ABLE TO SEE, SO FAR, AGAIN, BASED ON THAT METER TESTING, WE WERE BUDGETING ABOUT A 2% INCREASE REGISTRATION, BECAUSE AS YOU SAID, THE POSITIVE DISPLACEMENT METERS DEGRADED OVER TIME, SO WE KNEW THAT FROM THE MOMENT THEY WENT INTO THE GROUND, OBVIOUSLY THEY WERE DEGRADING, THEY BECAME SICK, THEY WERE LESS ACCURATE. WHEREAS, AGAIN, THE AMI METERS DON'T HAVE THAT ISSUE, AND SO WE'RE SEEING A 4% INCREASE REGISTRATION. 
          SO WE DO SEE THAT EFFICIENCY IN TERMS OF WHEN YOU'RE TALKING ABOUT THE BUDGET INCREASED REVENUE, BUT AS MR. PUENTE SAID, NOW THAT PEOPLE DO UNDERSTAND OUR TIERED RATE STRUCTURE AND OUR DROUGHT SURCHARGE, ONCE YOU HIT THAT 20,000-GALLONS WHEN WE'RE IN DROUGHT, THEY ARE VERY AWARE AND THEY REDUCE THEIR USAGE. SO WE ARE SEEING THAT REDUCTION OF USAGE ALONG WITH THE INCREASED REGISTRATION FROM AMI. 
          >> WHYTE: WITH THE NEW SMART METERS, ARE WE GOING TO BE ABLE TO 
          REDUCE LEAK DETECTION STAFF? >> PUENTE: THEY SERVE TWO DIFFERENT PURPOSES. LEAK DETECTION IS TO GO OUT AND FIND LEAKS OF OUR WATER MAINS, WHICH VERY DIFFERENT FROM LEAKS AT YOUR OWN HOME OR -- 
          >> WHYTE: OKAY. SO ONE DOESN'T HAVE ANYTHING TO DO WITH THE 
          OTHER. >> PUENTE: RIGHT. >> WHYTE: ALL RIGHT. 
          LAST QUESTION, THIS RATE INCREASE THAT Y'ALL ARE GOING TO ASK FOR, I THINK YOU MENTIONED THAT IT'S GOING TO BE DIRECTED TOWARDS NEW WASTEWATER 
          TREATMENT PLANTS. >> PUENTE: NOT A NEW PLANT. 
          >> WHYTE: RENOVATING OR UPGRADING. >> CORRECT. 
          >> WHYTE: WE'RE GOING TO BE ABLE TO GUARANTEE THAT'S WHERE THIS MONEY'S GOING, IT'S NOT GOING TO GET LOST IN OPERATIONAL COSTS OR -- 
          >> PUENTE: NO, NO, NO, DEFINITELY YOU'LL SEE IMPROVEMENTS AND EFFICIENCIES. FOR EXAMPLE, ONE OF THE BIG COST IS JUST OXYGEN, AIR BLOWERS THAT FEED THE MICROBES THAT DO THE JOB THAT THEY'RE SUPPOSED TO DO. GETTING NEW BLOWER SYSTEM IN THERE IS GOING TO SAVE US ON OUR ENERGY BILL. AND SO THOSE KINDS OF THINGS, THERE'S GOING TO BE EXPENDITURES, BUT THERE WILL ALSO BE SOME SAVINGS ON THE MAINTENANCE SIDE. BECAUSE WE'VE GOTTEN TO THAT POINT WHERE WE'RE SPENDING TOO MUCH ON MAINTENANCE TO REPAIR, TO MAINTAIN, WHEN WE JUST 
          NEED TO TOTALLY REHAB. >> WHYTE: OKAY. WELL, AGAIN, I APPRECIATE 
          [02:35:02]
YOUR WORK. I APPRECIATE THE PRESENTATION, AND I WOULD JUST EMPHASIZE THAT, FOR ME AT LEAST, AND I'M SURE SOME OF MY COLLEAGUES AS WELL, ASKING THE CITIZENS TO PAY MORE IS NEVER SOMETHING THAT WE WANT TO DO. AND SO WE HERE AT THE CITY NEED TO BE MORE EFFICIENT IN HOW WE'RE SPENDING MONEY. I THINK WE'RE SLOWLY HEADING DOWN THAT PATH. I'VE SAID TO RUDY OVER AT CPS, THEY NEED TO DO THE SAME THING, AND, OF COURSE, SAWS SHOULD AS WELL. 
          >> PUENTE: WE WILL. THANK YOU. >> WHYTE: THANKS, MAYOR. 
          >> MAYOR JONES: CHAIR GALVAN? >> GALVAN: THANK YOU, MAYOR. I HAD A COUPLE QUICK LAST QUESTIONS. 
          I WANTED TO ECHO THE CONCERNS RAISED BY COUNCILMEMBER KAUR AND CASTILLO ABOUT THE HOME VALUE QUALIFICATIONS. I THINK IT'S WORTH REEVALUATING, LOOKING AT INCOMES VERSUS HOME VALUE, BECAUSE, OF COURSE, UNDERSTANDING THE DEVELOPMENT PRESSURES AND THINKING ABOUT WHILE IT MAY NOT ALWAYS BE READY TO DISTRICT SIX, IT WILL BE [INDISCERNIBLE] MAKING SURE THE AREAS AROUND THE AREA -- OR AREAS AROUND THE IMPACT AREA WILL STILL BE ABLE TO [INDISCERNIBLE] IF THEIR HOME VALUES SKYROCKET JUST BECAUSE NEW DEVELOPMENT'S IN THEIR AREA. 
          ASIDE FROM THAT, I WANTED TO ASK THE QUESTION ABOUT THE -- I THINK IT WAS SLIDE 18 IN THE BUDGET PROCESS CAPITAL PLANS. I REALLY APPRECIATE THIS SLIDE AND WAS LOOKING AT WHAT'S COMING DOWN THE PIPELINE A LITTLE BIT, BUT WHAT I WANTED TO ASK FOR -- OR WOULD LIKE TO SEE IS HOW WE'RE MAKING PROGRESS ON ALL OF THESE CAPITAL PLANS WITH THE RATE INCREASES OR WITHIN THE ADJUSTMENTS YOU'VE MADE WITHIN SAWS, OR THE DEBT ISSUE AS WELL IN MEETING THESE CAPITAL IMPROVEMENTS.  AND EVEN LOOKING AT THE MAPPING THEY WERE TALKING ABOUT, TOO, SEEING WHAT'S THE PROGRESS BEING MADE, THAT WAY WE FEEL MORE CONFIDENT TO ABOUT THE INVESTMENTS WE'RE MAKING 
          TOO AS WELL. >> PUENTE: AS FAR AS AS THE EVERY OTHER MONTH BRIEFING WE'LL ACTUALLY PUT IT IN WRITING TO YOU OR PUT IT ON WHAT THE AGENDA SAYS, A FULL BLOWN EXPLAY NATION OF HOW WE'RE SPENDING THAT 
          MONEY. . >> GALVAN: I THINK COUNCILMEMBER MEZA GONZALEZ BROUGHT UP SOME OF THE -- [INDISCERNIBLE] RESIDENTS IN HOAS IN DISTRICT SIX ARE LOOKING AT SOME OF THE REBATE PROGRAMS WITH SAWS, I'M NOT SURE IF I CAN DO THIS OR NOT GIVEN HOA RULES. 
          MY UNDERSTANDING THEY STILL CAN, IT'S JUST AN INFORMATIONAL CAMPAIGN, HOW IS THAT IN CONNECTION WITH HOAS OR RESIDENTS WITHIN HOAS -- 
          >> PUENTE: WE DO A LOT OF EDUCATION TO THE HOMEOWNER ASSOCIATION BOARD MEMBERS, THEIR OFFICERS, ON WHAT OUR INVOLVEMENT IS WITH THAT, WHAT THEY CAN DO AND CANNOT DO. A LOT OF IT IS DICTATED 
          BY STATE LAW. >> GALVAN: RIGHT. >> PUENTE: FAVORABLY, I MIGHT ADD, BY STATE LAW. I HAPPENED TO HAVE PASSED ONE OF THOSE BILLS THAT YOU COULD NOT ELIMINATE OR DISINCENTIVIZE WATER CONSERVATION PROGRAMS JUST BECAUSE YOU'RE IN A HOMEOWNERS ASSOCIATION. SO THERE'S INTERPLAY WITH THE STATE, BUT WE -- WHAT WE TRY TO DO IS EDUCATE THE BOARD ON WHAT PROGRAMS ARE AVAILABLE, WHAT THEY CAN DO AND CAN'T DO, WHAT WE CAN AUTHORITY OVER FOR, WHAT THE CITY HAS AUTHORITY OVER FOR, AND WHAT THE 
          STATE IS RESPONSIBLE FOR. >> GALVAN: GOT IT. 
          >> PUENTE: SO IT'S EDUCATIONAL. >> GALVAN: RIGHT. 
          >> PUENTE: WE REACH OUT TO ALL THE HOMEOWNER ASSOCIATIONS. 
          >> GALVAN: GOT IT. I APPRECIATE THAT. I THINK MAYBE WE CAN TALK A BIT MORE OFFLINE, I THINK THERE'S A MISCOMMUNICATION -- NOT MISCOMMUNICATION NECESSARILY FROM Y'ALL BUT MAYBE SOME UNDERSTANDINGS FROM THE RESIDENTS -- I THINK OF GREEN EARTH WEST, A LARGE LOA IN DISTRICT SIX THAT HAD  IT'S HARD FOR THEM TO REACH OUT TO THE HOA BOARD WHEN SOME PRECONCEIVED NOTION MAY BE THERE. 
          OUR OFFICE CAN HELP WITH THAT, TOO, JUST TO LET RESIDENTS GET THAT MORE LEVELED WITH THEMSELVES. LAST THING I WANTED TO MENTION WAS I APPRECIATE MY COUNCIL COLLEAGUES' POINTS ON [INDISCERNIBLE] RANCH, I'LL BE TOURING NEXT WEEK. SOME FOLKS WENT AHEAD OF ME, BUT NONETHELESS, I THINK IT WAS IMPORTANT THAT THEY WERE TALKING ABOUT GENERAL DEVELOPMENT IN OUR CITY AND ETCH EVEN BEYOND A LITTLE BIT, HOW IT CAN IMPACT CPS, SAWS, AND LOOKING AT THE DEVELOPMENT PATTERNS IN OUR REGION, BECAUSE I THINK IT'S WORTHWHILE TO THINK ABOUT IF WE'RE REALLY FOCUSED ON INFIELD DEVELOPMENT WE NEED TO MAKE SURE WE'RE [INDISCERNIBLE] THAT OUR COUNCIL'S ENGAGED IN OUR REGION AS WELL, SO HAPPY TO CONTINUE PARTNERING WITH YOU ALL AS WELL AS CPS ENERGY AND ANY OTHER FOLKS, WITH THE COUNTY AS WELL TO LOOK AT THAT KIND OF DEVELOPMENT AND UNDERSTAND THE IMPACT IT HAS ON OUR ENVIRONMENT AS WELL AS OUR COST OF LIVING HERE ACROSS THE BOARD. THANK YOU. 
          >> MAYOR JONES: HAS EVERYONE SPOKEN ON THIS TOPIC THAT WOULD LIKE TO SPEAK? OKAY. GREAT. 
          THANK YOU, AGAIN, MR. P WHEN PUENTE AND THE TEAM. 
          [02:40:02]
JUST A COUPLE OF FINAL COMMENTS ON THIS. GOING BACK TO THE DATA CENTER DISCUSSION, I WAS JUST AT THE U.S. CONFERENCE OF MAYORS AND SOME OF MY COLLEAGUES WHO ARE A LITTLE FURTHER ALONG IN THIS DATA CENTER JOURNEY IDENTIFIED ONE OF THE THINGS AS IT RELATES TO RECYCLED WATER TO COOL THE CENTERS, WHICH IS AS THAT WATER EVAPORATES INTO THE LOCAL AREA THEY DID SEE RATES OF RESPIRATORY CHALLENGES, I'D REALLY WANT US TO MAKE SURE THAT WE'RE BEING AS THOUGHTFUL IN HOW WE ARE MONITORING FOR ANY ADDITIONAL PUBLIC HEALTH CONCERNS AS A RESULT OF THE USE OF RECYCLED WATER TO COOL THESE DATA PLANTS -- THESE DATA CENTERS, RATHER, EXCUSE ME. I WOULD ALSO ASK, AGAIN -- THANK YOU FOR ALL THE PROGRAMS THAT HELP FOLKS WITH PAYMENT PLANS, ESSENTIALLY. 
          AS WE ARE ALL VERY COGNIZANT AND ALREADY THINKING ABOUT THE IMPLEMENTATION OF THE RECONCILIATION BILL, CUTS TO CHIP, SNAP, SOCIAL SECURITY, MEDICARE, MEDICAID, THESE DEVASTATING CUTS ON TOP OF OW THIS BODY IS GOING TO WORK TO CLOSE $150 MILLION GAP IN OUR '27 BUDGET  I REALLY WOULD APPRECIATE YOU ALL PUTTING SOME THOUGHT INTO ALREADY HOW WE MIGHT EXPAND SOME OF THOSE PROGRAMS, AND THEN YOU ALL HELPING US UNDERSTAND HOW ADDITIONAL HELP IN THOSE PROGRAMS, IN FACT, ALSO IMPACTS YOUR ABILITY TO DO SOME OF THE OTHER THINGS THAT SAWS NEEDS TO DO. LET ME ALSO SAY, I THINK IT'S REALLY IMPORTANT, YOU KNOW, WE ARE ALL COGNIZANT OF THE VERY DIFFICULT FISCAL ENVIRONMENT THAT MANY OF OUR NEIGHBORS ARE IN NOW AND WILL BE HERE SOON. 
          AND WE WOULD ONLY BE AS THOUGHTFUL AS WE CAN BE IN EXPLAINING TO THEM WHY A RATE INCREASE MAY BE NECESSARY. AND THAT'S WHY THE STUDY THAT THE CHAIRWOMAN IDENTIFIED WILL BE IMPORTANT, BECAUSE AT THE END OF THE DAY, THESE ARE ALSO -- YOU KNOW, FAILING TO DO THESE RENOVATIONS IS A PUBLIC SAFETY ISSUE, IT'S A PUBLIC HEALTH ISSUE, ET CETERA. 
          SO WE HAVE TO TAKE THAT INTO ACCOUNT. IT'S NO T THAT -- IN AUDIO] -- RATES, BUT UNFORTUNATELY, THESE DELAYED PROJECTS. 
          ONE, THEY ONLY GET MORE EXPENSIVE TO DO OVER TIME, AND WE ONLY INCREASE THE PUBLIC HEALTH AND PUBLIC SAFETY RISK TO OUR COMMUNITY AS A RESULT OF DEFERRING THAT MUCH-NEEDED WORK. LASTLY, I DON'T KNOW HOW POPULAR THIS IDEA WILL BE; HOWEVER, WE'VE GOT TO THINK ABOUT IT. 
          THAT'S WHAT THE VOTERS HAVE ASKED US TO DO, WHICH IS BE THOUGHTFUL WITH HOW WE INVEST THEIR RESOURCES. WE WILL SHORTLY DO A TABLE TOP EXERCISE THAT HELPS US THINK THROUGH SOME OF THE MOST CHALLENGING SCENARIOS AS A RESULT OF, ONE, THE FEDERAL CUTS WE WILL SEE. AND THEN CLOSING THE GAPS IN OUR BUDGET. 
          THAT WILL BE VERY HELPFUL, BECAUSE I THINK AS WE ALL SAW IN THE LAST BUDGET SESSION, WE HAD LOTS OF ANALYSIS, FOR EXAMPLE, ON STAFFING FOR POLICE OFFICERS. AND THAT'S GREAT. THAT'S VERY HELPFUL. 
          HOWEVER, WE DID NOT HAVE THAT SAME LEVEL OF RIGOR OR ANALYSIS AMONG ANYTHING ELSE THAT WE WANT TO STAFF IN OUR COMMUNITY. 
          AND SO AS WE KNOW, THE MEDICAID 1115 WAIVER IS GOING AWAY, AS WE CAN ALSO POTENTIALLY ANTICIPATE SOME ADDITIONAL FEDERAL CUTS TO THE PUBLIC HEALTH SPACE, THAT TABLE TOP WILL HELP US UNDERSTAND, HEY, IF THAT GOES AWAY, WE THEN CAN HAVE A DISCUSSION ABOUT WHAT DO WE WANT TO FUND IN OUR COMMUNITY, WHAT ARE THE SERVICES THAT WE THINK ARE IMPORTANT. AND THEN, TWO, IF WE THINK THEY'RE IMPORTANT, HOW DO WE FUND THEM? ONE OF THE -- ONE OF THE WAYS, WE'VE JUST GOT TO PUT IT OUT THERE, BECAUSE, I MEAN, THIS LAST BUDGET SEASON, WE ALREADY TURNED OVER ALL THE COUCH CUSHIONS, RIGHT? WE'VE ALREADY DONE THAT EXERCISE. ONE OF THE OPPORTUNITIES THAT WE HAVE WITH AN ORDINANCE CHANGE IS TO, IN FACT, INCREASE THE CONTRIBUTION FROM THIS UTILITY TO THE CITY OF SAN ANTONIO. 
          SO RIGHT NOW IT'S AT 4%. IT COULD GO TO 5%, JUST TO GIVE YOU AN IDEA OF WHAT THAT DOES, THAT'S ABOUT NINE TO 10 MILLION MORE DOLLARS INTO OUR GENERAL FUND. OBVIOUSLY, THAT'S ONLY A FRACTION OF THE $150 MILLION GAP WE ARE FACING IN 2027, BUT WE DO NEED TO LOOK AT ALL -- ALL POTENTIAL OPTIONS AS WE LOOK TO CLOSE THAT GAP. 
          OKAY. THANK YOU, AGAIN, SAWS LEADERSHIP TEAM FOR BEING HERE. WE'VE GOT ONE MORE TOPIC, ERIK, OVER TO YOU. 
          >> WALSH: THANK YOU, MAYOR. WE'LL MOVE THROUGH THIS ITEM QUICKLY. IT'S NOT A VERY LONG ITEM, BUT SHANNON MILLER'S GOING TO GIVE AN UPDATE TO THE COUNCIL ON A PROPOSED NEW STRATEGIC PLAN FOR OUR RIVERWALK. SHE'LL GIVE YOU A LITTLE BIT OF BACKGROUND ON OUR -- ON THE PURPOSE OF THE CAPITAL IMPROVEMENTS FUND AND THE ADVISORY BOARD THAT WE HAVE IN PLACE. AND THE STRATEGIC PLAN WILL ALLOW US TO TAKE A COMPREHENSIVE LOOK AT THE -- ALL ASPECTS OF THE RIVERWALK AND CERTAINLY WORK WITH STAKEHOLDERS DOWNTOWN. 
          THE LAST TIME WE DID THIS WAS IN 2008, AND SO IN MEETING WITH STAKEHOLDERS OVER THE LAST SEVEN OR EIGHT MONTHS, WE HAVE KIND OF COME TO THE CONCLUSION THAT WE NEED TO UPDATE THIS AND GO FORWARD. 
          THIS WOULD INCLUDE INFRASTRUCTURE, SIGNAGE AND POTENTIALLY SOME 
          [02:45:01]
ORDINANCE CHANGES FOR YOUR CONSIDERATION ON HOW OPERATIONS AND LEASES ARE ENACTED DOWN ALONG THE RIVERWALK LEVEL. SO THIS IS TIMELY ALSO BECAUSE WE ARE GOING THROUGH AN RFP PROCESS. AND SO ANY FEEDBACK WE HEAR FROM YOU ALL THIS AFTERNOON WILL -- THAT GIVES US ENOUGH TIME TO MAKE ADJUSTMENTS, THAT WAY FOLKS CAN -- CAN SEE YOUR INPUT AND RESPOND 
          ACCORDINGLY. SHANNON? >> MILLER: GREAT. 
          THANK YOU, ERIK. I'M SHANNON MILLER, I'M THE DIRECTOR OF THE OFFICE OF HISTORIC PRESERVATION. THANK YOU ALL. 
          I KNOW YOU'VE HAD A LONG AFTERNOON ALREADY, SO I WILL BE BRIEF. 
          AS YOU KNOW, THE RIVERWALK IS EXTREMELY IMPORTANT COMPONENT OF OUR DOWNTOWN AND A TOP TOURIST DESTINATION IN THE STATE, AND SO IT'S IMPORTANT THAT VISITORS LEAVE WITH A FAVORABLE IMPRESSION AND THAT RESIDENTS ARE PROUD TO SHOW IT OFF. AND THAT WE'RE GOOD STEWARDS OF THE RIVERWALK AS A HISTORIC AND CULTURAL RESOURCE AND WE MAKE SMART DECISIONS AS WE LOOK AT IMPROVING THINGS LIKE ACCESSIBILITY AND SAFETY AND ALSO PRIORITIZE ADDITIONAL INVESTMENTS. 
          IN 2001, A SPECIAL FUND WAS ESTABLISHED TO RECEIVE REVENUE FROM THE MORE THAN 30 PATIO LEASES LOCATED WITHIN THE PUBLIC RIGHT OF WAY ALONG THE RIVERWALK. THAT FUND MUST BE USED FOR CAPITAL PROJECTS AND IMPROVEMENTS TO THE RIVERWALK. THIS INCLUDES BUSINESSES ON THE TRADITIONAL -- LIKE HISTORIC HORSESHOE OF THE RIVER AND THEN ALSO IN THE CHANNEL THAT EXTENDS NORTH TOWARDS THE MUSEUM REAM AND IN THE TURN BASIN BY RIVERCENTER MALL. THIS AREA GENERALLY ALIGNS WITH THE AREA THAT IS MANAGED OPERATIONALLY BY CCDO AND JOHN JACKSON AND HIS TEAM ARE ALSO HERE TODAY. TO INFORM THE SPENDING PRIORITIES FROM THE FUND, THERE IS A RIVERWALK CAPITAL IMPROVEMENTS ADVISORY BOARD. THAT BOARD INCLUDES FOUR MEMBERS APPOINTED BY COUNCIL TO FILL SPECIFIC CATEGORIES, WHICH INCLUDE DOWNTOWN BUSINESS OWNER, A DOWNTOWN RESIDENT AND TWO RIVERWALK LESSEES, AND THOSE POINTS WERE MOST RECENTLY MADE IN MARCH OF THIS YEAR. CHARLES RILEY IS THE CURRENT CHAIR, OTHER CITIZEN MEMBERS INCLUDE CHRIS HILL, SAM PENSHEV AND DOMINIQUE SILVA. JOHN JACKS, HOMER GARCIA AND I ALSO SERVE ON THAT BOARD. IT'S IMPORTANT TO NOTE THAT ALL -- THERE'S ADDITIONAL CITY OVERSIGHT ON THE DESIGN OF PROJECTS WITHIN THE RIVERWALK AREA, OF COURSE, THE HDRC REVIEWS ALL PROJECTS IN THE RIVERWALK BASED ON THE UNIFIED DEVELOPMENT CODE. AS ERIK MENTIONED, THERE WAS A MASTER PLAN COMPLETED IN 2008 THAT WAS FUNDED THROUGH THE RIVERWALK'S FUND. THE CONTRACT WAS AWARDED IN 2007 BY COUNCIL TO BAITTY PALMER ARCHITECTS AND THE FOCUS ON THAT PLAN WAS REALLY ON THE HORSESHOE AND THE RIVERCENTER MALL EXTENSION. 
          IT DID NOT INCLUDE THE RIVER CHANNEL. IT INCLUDED AN INVENTORY -- AN ASSESSMENT OF SAFETY AND ACCESSIBILITY ISSUES, AND THEN DESIGNS FOR FUTURE CONSTRUCTION PHASES. IT ALSO IDENTIFIED HOT SPOTS THAT WERE OF PARTICULAR CONCERN IN TERMS OF PUBLIC SAFETY, SO THAT IT COULD HELP CITY STAFF PRIORITIZE THOSE PHASES. 
          THERE ENDED UP BEING SIX TOTAL PHASES, THE FINAL ONE WAS COMPLETED IN 2022, AND THIS WORK REPRESENTS A TOTAL INVESTMENT OF $18.7 MILLION IN CAPITAL IMPROVEMENTS. THE IMAGE THAT YOU SEE ON THE SCREEN IS ACTUALLY A RAMP AND A PUBLIC ELEVATOR THAT WERE CONSTRUCTED NEAR THE INTERNATIONAL CENTER IN 2015, AND THIS IS ONE OF THE MORE SUBSTANTIAL SCOPES. SO IT'S A GREAT EXAMPLE OF THE WORK THAT CAME OUT OF THAT PLAN. THERE'S AN ADDITIONAL PHASE THAT HAS BEEN DESIGNED FOR THE RIVER CHANNEL PORTION BETWEEN HOUSTON STREET AND LEXINGTON BY ELTROPICANA HOTEL. 
          THIS WILL INCLUDE SIDEWALK REPAIRS AND ALSO REPAIRS TO THE PUBLIC STAIRCASE NEAR THE MEXICAN MANHATTAN BUILDING. 
          THIS PROJECT IS ALREADY FUNDED FROM THE GENERAL FUND. 
          AND CONSTRUCTION WILL BEGIN ON THAT PROJECT THIS FISCAL YEAR. 
          THIS BRINGS US TO THE NEW STRATEGIC PLAN. MOVING FORWARD, WE WANT TO MAKE SURE THAT THERE IS A COMPREHENSIVE PLAN IN PLACE THAT HELPS US GUIDE FUTURE FUNDING DECISIONS ON THE RIVER, AND THAT WE'RE CONSIDERING ALL OF THE OPPORTUNITIES WE HAVE FOR ENHANCING THE OVERALL EXPERIENCE OF THE RIVERWALK. SO STAFF WORKED WITH THE RIVERWALK CAPITAL IMPROVEMENT ADVISORY BOARD, WITH RELEVANT CITY STAFF AND OTHER STAKEHOLDERS LIKE CENTRO, VISIT SAN ANTONIO AND THE RIVERWALK BUSINESS OWNERS GROUP AND THE CONSERVATION SOCIETY TO DEVELOP THE SCOPE OF WORK THAT WAS INCLUDED IN THE REQUEST FOR PROPOSALS. 
          TRISH DEBERRY, MARIO DEBASS AND MARK ARE ALL HERE IN SUPPORT OF THE STRATEGIC PLAN. THANK YOU ALL FOR YOUR HELP. 
          THE RFP WAS RELEASED IN AUGUST, AND IT WILL CLOSE, AS ERIK SAID, ON OCTOBER 9. THE SCOPE OF WORK IS REALLY TO TAKE A HOLISTIC APPROACH TO CONSIDER ALL OF THE OPPORTUNITIES THAT WE HAVE TO IMPROVE THE 
          [02:50:03]
OVERALL EXPERIENCE. AND MOST -- MAYBE MOST IMPORTANTLY, IT WILL INCLUDE A COMPREHENSIVE PUBLIC INPUT CAMPAIGN. AND SO WE KNOW THAT WE NEED AND WE WANT TO HEAR FROM TOURISTS, BUT WE ALSO WANT TO HEAR FROM LOCALS, AND IN PARTICULAR, WE WANT TO HEAR FROM THE LOCALS WHO DON'T COME TO THE RIVER AS MUCH AS WE WOULD LIKE THEM TO, TO HEAR ABOUT WHY OR CONCERNS WE MIGHT BE ABLE TO ADDRESS TO DRIVE MORE TRAFFIC TO THE RIVERWALK. WE'RE GOING TO LOOK AT RELEVANT CITY CODES, WHICH INCLUDE EVERYTHING FROM WHETHER OR NOT BUSINESSES SHOULD HAVE AMPLIFIED SOUND TO PEOPLE VENDING ON THE SIDEWALKS TO SIGNAGE, TO DIGITAL MENU BOARDS. AND THE CODE DIAGNOSTIC WILL ALSO TAKE A LOOK AT THE UNIFIED DEVELOPMENT CODE AND THE RIVER IMPROVEMENT OVERLAY DISTRICT STANDARDS TO SEE WHERE THERE MIGHT NEED TO BE UPDATES. 
          MOST OF THE RELEVANT REGULATIONS ARE 15 TO 20 OR MORE YEARS OLD, AND SO IT MAKES SENSE THAT WE WOULD TAKE A LOOK WITH FRESH EYES AT THOSE REGULATIONS. AS I MENTIONED, WE WORKED WITH MANY STAKEHOLDERS TO IDENTIFY A NUMBER OF STUDY AREAS FOR THE PLAN RANGING FROM POTENTIAL CAPITAL IMPROVEMENTS AND MAINTENANCE PROJECTS, BUSINESS GROWTH AND ATTRACTION, TRAFFIC AND CIRCULATION, WHICH WILL INCLUDE WAY FINDING, PUBLIC ART OPPORTUNITIES, ,  INFRASTRUCTURE INCLUDING NEW AMENITIES AND EVEN ECOLOGY AND LANDSCAPING. AS PREVIOUSLY MENTIONED, ONE OF OUR GOALS IS TO SUPPORT OUR BUSINESS OWNERS THROUGH THIS EFFORT. AS AN EXAMPLE OF WHAT WE'VE HEARD IS THAT FOOT TRAFFIC IS SLOWER IN SUMMER MONTHS DUE TO HEAT. 
          SO WE WILL LOOK AT THINGS LIKE NEW OPPORTUNITIES FOR SHADE OR MAYBE EVEN MISTERS ALONG THE RIVER IF THAT WOULD HELP ENHANCE THE OVERALL EXPERIENCE. YESTERDAY I DID AN INTERVIEW ON ONE OF THE LOCAL NEWS STATIONS AND I'VE ALREADY HEARD FROM CITIZENS TODAY ABOUT BEING INTIMIDATED BY PARKING WHEN THEY -- WHICH IS WHAT KEEPS THEM FROM COMING DOWNTOWN. AND SO OBVIOUSLY WE WANT TO LOOK AT THINGS LIKE DOWNTOWN TUESDAY AND HOW WE CAN PROMOTE THAT, BUT THEN ALSO LOOK AT OTHER CHALLENGES THAT MIGHT BE INTIMIDATING TO PEOPLE OR KEEPING THEM FROM MAKING THE DECISION TO COME TO THE RIVER. THERE HAVE BEEN SIMULTANEOUS CONVERSATIONS ABOUT REGULATIONS AND ENFORCEMENT, AND SO THROUGH THIS EFFORT, WE'LL FIND THE RIGHT BALANCE OF AVOIDING THE ACTIVITIES AND THINGS THAT WE KNOW AS A COMMUNITY WE DON'T WANT TO SEE -- CONSIDERING THINGS THAT MIGHT HELP OUR BUSINESSES BE MORE SUCCESSFUL AND HELP ATTRACT RESIDENTS. AS WAS MENTIONED, THE SOLICITATION CLOSES NEXT WEEK ON ON OCTOBER 9TH. WE'LL BEGIN RIGHT AFTER THAT DOING THE REVIEW AND EVALUATING THE PROPOSALS, AND WE INTEND TO HAVE A SELECTION BY NOVEMBER. 
          BEFORE WORK REALLY BEGINS IN FULL, ONE OF THE FIRST THINGS WE WILL DO AS A CITYWIDE PUBLIC INPUT CAMPAIGN AND COLLABORATION WITH C & E, WE WANT TO MAKE SURE THAT OUR OUTREACH CAMPAIGN IS EFFECTIVE AND WE'RE REACHING -- TO HELP US GET THE WORD OUT AS WE LAUNCH THAT PUBLIC INPUT CAMPAIGN. 
          ALL OF THE RIVERWALK BUSINESS OWNERS, OPERATORS, MANAGERS AND RESIDENTS WILL BE INVITED TO PARTICIPATE AND WILL WORK WITH VSA, CENTRO, THE RIVERWALK BUSINESS OWNERS GROUP AND OTHERS TO HELP US REACH THOSE INDIVIDUALS. AGAIN, WE PLAN TO WRAP UP THIS EFFORT WITHIN THIS FISCAL YEAR, SO THE CLOCK STARTS TODAY OFFICIALLY, AND I AM HAPPY TO ANSWER 
          ANY QUESTIONS YOU MAY HAVE. >> MAYOR JONES: THANK YOU, SHANNON. YOU WERE RIGHT, IT WAS VERY BRIEF. 
          THE -- I ASKED ERIK TO PUT THIS ON THE AGENDA, WE'VE GOT SOME FEEDBACK FROM SOME OF THE STAKEHOLDERS ON THE RIVERWALK ABOUT THIS WAY AHEAD, AND SO THANKFUL THAT WE'RE TALKING ABOUT THIS NOW. 
          THIS IS THE FIRST TIME THIS IS -- TIMELY BECAUSE THE RFP CLOSES NEXT WEEK. THIS IS OUR OPPORTUNITY IF THERE'S ANYTHING IN THERE THAT WE'D LIKE TO SEE, THAT WE ADD THAT NOW. TO THAT POINT TO THE RFP, WHY WAS TASK FIVE 
          OPTIONAL? >> MILLER: IT'S REALLY A FUNDING CONSIDERATION MORE THAN ANYTHING ELSE. WE DO HAVE FUNDING THAT WAS APPROVED BY THE RIVERWALK CAPITAL IMPROVEMENT ADVISORY BOARD THAT WE FEEL CONFIDENT WILL COVER THE FIRST FOUR TASKS. THAT, ALONG WITH SOME OPERATING FUNDS FROM OHP AND CCDO. WE DO ANTICIPATE THAT WE MIGHT HAVE TO GO ASK FOR ADDITIONAL FUNDING FROM THE RIVERWALK CAPITAL IMPROVEMENT ADVISORY BOARD FOR TASK 5. SO THAT'S WHY WE ASKED THEM TO PRICE IT SEPARATELY SO THAT WE CAN KIND OF TREAT IT THAT WAY AND GET STARTED ON THE FIRST FOUR TASKS, WHILE WE IDENTIFY FUNDING FOR 
          TASK 5, IF NECESSARY. >> MAYOR JONES: ERIK, WE'RE NOT LIMITED -- AGAIN, JUST BECAUSE THIS IS SUCH A REVENUE GENERATOR FOR OUR 
          [02:55:03]
COMMUNITY, DEPENDING ON, YOU KNOW, A PLAN CAME OUT OF THIS, IF WE COULD HELP -- IF SOMEBODY COULD HELP US ASSESS THE ROI ON THAT, THAT WOULDN'T NECESSARILY ONLY HAVE TO BE FUNDED OUT OF THIS BUCKET, WOULD IT? COULD WE FUND IT IN ANOTHER WAY IF WE THOUGHT THE ROI WAS HIGH ENOUGH. 
          >> WALSH: SURE, YEAH. ABSOLUTELY, MAYOR. YEAH. 
          >> MAYOR JONES: OKAY. SO I THINK THAT -- JUST KIND OF SEEING WHAT'S IN THE REALM OF POSSIBLE IS IMPORTANT, WE DON'T DO THE STRATEGIC PLAN OFTEN, AND SO I WOULD HAVE THE RFP BE UPDATED TO ENSURE THAT TASK 5 IS NOT OPTIONAL AND FOLKS PROVIDE SOME IDEAS ON HOW WE MIGHT DO THAT. 
          THE OTHER THING I WOULD ADD TO THIS IS, I THINK THE CATEGORIES ARE CORRECT. ONE GROUP I WANT TO MAKE SURE THAT WE HEAR FROM, AND NOT NECESSARILY JUST -- AND CERTAINLY IN THE PUBLIC INPUT PIECE, BUT WOULD WANT THOSE ANSWERING THIS RFP TO CONSIDER, WHICH IS THE MODIFICATIONS THAT WE CAN PROVIDE TO ENSURE THAT OUR WORKERS ON THE RIVERWALK ARE SAFE, RIGHT? ONE OF THE THINGS I REMEMBER HEARING ABOUT FOR THOSE THAT, YOU KNOW, WORK ODD HOURS ARE JUST -- DOESN'T FEEL SAFE TO WALK FROM PARKING TO THE HOTEL OR WHEREVER THEY WORK. SO I'D LIKE THERE TO BE SOME SPECIFIC INCLUSION HERE OF SAFETY FOR WORKERS THAT ARE ON THE RIVERWALK. 
          >> MILLER: ABSOLUTELY. >> MAYOR JONES: THANK YOU. 
          LET ME GO TO MY COLLEAGUES. CHAIR MCKEE-RODRIGUEZ? 
          >> MCKEE-RODRIGUEZ: THANK YOU, MAYOR, AND THANK YOU FOR THE PRESENTATION. 
          I'LL PREFACE MY STATEMENTS AND MY QUESTIONS BY STATING THAT I UNDERSTAND THE RIVERWALK IS A STAPLE OF SAN ANTONIO AND ONE OF THE GREATEST ASSETS THAT WE HAVE FOR TOURISTS WHO ENJOY IT AS A ONE OF A KIND SPACE AND FOR RESIDENTS WHO SHARE FOND MEMORIES OF THE RIVERWALK. I PROPOSED TO MY HUSBAND AT THE RIVERWALK. 
          IT'S A VERY IMPORTANT PLACE FOR SO MANY OF US, SO NOTHING I'M ABOUT TO SADIE MINISHES THAT AND I'M NOT SAYING WE SHOULDN'T INVEST HERE BUT I DO WANT TO DISCUSS IT AS A COMPONENT OF THE LARGER DOWNTOWN INVESTMENT THAT WE'RE MAKING. SO FOR A SECOND, LET'S TALK ABOUT OPPORTUNITY COST. $18.7MILLION HAVE ALREADY BEEN SENT ON RIVERWALK CAPITAL PROJECTS WHILE MANY NEIGHBORHOODS LACK BASIC INFRASTRUCTURE. WE'RE ALREADY PLANNING TO FOCUS MORE BOND DOLLARS DOWNTOWN AS A PART OCH OUR -- MARVEL. IMPORTANT TO NOTE RESPECTFULLY, DISTRICT ONE HAS RECEIVED 15% OF ALL 2017 AND 2022 BOND DOLLARS FOR STREET IMPROVEMENTS, THE BULK OF WHICH IS CONCENTRATED DOWNTOWN. 
          TO COMPARE, DISTRICT TWO, ONE OF THE AREAS OF TOWN WITH THE GREATEST INFRASTRUCTURE NEED RECEIVED THE LEAST OF ANY DISTRICT ACROSS TWO BOND CYCLES AT ONLY 5% AT $48 MILLION, AND THAT DOESN'T INCLUDE TIRZ DOLLARS, THE HOUSTON STREET TIRZ AND MIDTOWN TIRZ THAT ARE ALSO REDIRECTED TO THE DOWNTOWN AREA. AND SO I WANT TO BE CLEAR WITH RESPECT TO MY COLLEAGUE, COUNCILWOMAN KAUR, I KNOW THAT INEQUITY HAS ABSOLUTELY NOTHING TO DO WITH HER, RATHER IT HAS TO DO WITH OUR DISPROPORTIONATE EFFORTS TO INVEST DOWNTOWN, OFTENTIMES TO THE DRET MIMENT OF OUR CITY WHO HAVE WAITED DECADES FOR A DRAINAGE PROCESS OR STREET IMPROVEMENT WITH NO PLAN INSIGHT. 
          WE SAY FREQUENTLY THE DOWNTOWN BELONGS TO THE WHOLE CITY, BUT WE HAVEN'T DISCUSSED WHAT IT IS WE'RE ASKING OUR RESIDENTS TO GIVE US AS EXCHANGE. I WOULD LIKE US TO KEEP THAT IN MIND. 
          SO MOVING ON TO QUESTIONS, I BELIEVE THAT -- I'LL START OFF WITH THE SORT OF STAKEHOLDER GROUP. I BELIEVE THAT WE HAVE A DUTY TO CHALLENGE FOR MORE INCLUSIVE REPRESENTATION SO DECISION-MAKING ISN'T DOMINATED BY COMMERCIAL INTEREST. 
          SO I'D ASK, GIVEN THAT THE ADVISORY BOARD IS WEIGHTED TOWARDS BUSINESS AND PROPERTY OWNERS, HOW WILL WORKING-CLASS RESIDENTS, RENTERS, NEARBY NEIGHBORHOODS AND RIVERWALK EMPLOYEES ESPECIALLY, HAVE AN EVEN STRONGER VOICE IN SHAPING THE RIVERWALK'S FUTURE. AND I UNDERSTAND YOU MENTIONED A COMPONENT OF REACHING RESIDENT WHOSE DON'T COME AS MUCH AS WE WOULD LIKE THEM TO, BUT WHAT DOES THAT WHOLE EFFORT LOOK LIKE? 
          >> MILLER: SURE. IT'S A GREAT QUESTION, AND I JUST WANT TO CLARIFY THAT THE MAKEUP OF THE RIVERWALK CAPITAL IMPROVEMENT ADVISORY BOARD WAS ESTABLISHED BY -- IT WAS BECAUSE OF A SETTLEMENT IN A LAWSUIT MANY, MANY YEARS AGO. AND SO IT WAS SOMETHING THAT WAS ESTABLISHED AS PART OF THAT PROCESS. AND SO THAT'S WHY THE MEMBERSHIP IS DEFINED THE WAY IT IS. IT WAS REQUIRED BY THAT -- HOW THAT LAWSUIT WAS SETTLED. AND -- BUT ABSOLUTELY, WE WANT TO HEAR FROM ANY AND ALL RESIDENTS. AND SO I THINK THAT IS WHY WE'RE REALLY PRIORITIZING THAT PUBLIC INPUT COMPONENT, AND WE WANT TO WORK CLOSELY WITH C & E AND WITH EACH OF THE COUNCIL OFFICES TO THINK ABOUT CREATIVE WAYS TO GET TO PEOPLE BESIDES JUST HAVING MEETINGS DOWNTOWN. 
          AND SO I ABSOLUTELY LOOK FORWARD TO TALKING TO YOU ABOUT HOW YOU THINK IT MIGHT BE EFFECTIVE TO REACH YOUR CONSTITUENTS AND EACH OF YOUR 
          CONSTITUENTS AS WE GO THROUGH THIS PROCESS. >> MCKEE-RODRIGUEZ: I DO ALSO WANT TO BE SURE THAT ACCESSIBILITY IS ABOUT EQUITY AND NOT JUST A MEANS TO EXPAND COMMERCE, SO MY NEXT QUESTION IS, WILL THE ADA UPGRADES AND 
          [03:00:05]
ACCESSIBILITY IMPROVEMENTS BE PROTECTED FROM BEING OVERSHADOWED OR DEPRIORITIZED IN THE BUDGET BY BUSINESS ATTRACTION PROJECTS THAT -- I'LL LEAVE IT THERE? BUSINESS ATTRACTION 
          PROJECTS? >> MILLER: YES. OBVIOUSLY ACCESSIBILITY REMAINS A VERY HIGH PRIORITY AND, YOU KNOW, IT'S KIND OF FUNNY, LIKE LITERALLY ONE OF THE FIRST THINGS I DID WHEN I WAS HIRED AT THE CITY WAS TO REVIEW PHASE 1 OF THE MASTER PLAN. AND THERE WERE CHANGES BECAUSE, YOU KNOW, LIKE THERE WERE STAIRS THAT WERE HISTORIC THAT NEEDED TO BE UPDATED AND I WAS LIKE, OH, MY GOSH, I'M GOING TO MESS UP THE RIVERWALK. BUT WE DIDN'T MESS IT UP. 
          LIKE THE IMPROVEMENTS THAT INCREASE ACCESSIBILITY ALONG THE RIVER HAVE MADE IT FOR SUCH A MUCH BETTER EXPERIENCE FOR EVERYONE. 
          AND SO IT'S REALLY IMPORTANT THAT WE CONTINUE TO MAKE THOSE IMPROVEMENTS TO ENSURE THAT ACCESSIBILITY CONTINUES TO BE A TOP 
          PRIORITY. >> MCKEE-RODRIGUEZ: THANK YOU. 
          NEXT I KNOW A PART OF THAT WAS BUSINESSES ASKING FOR RELAXED REGULATIONS. MANY OF THE REGULATIONS EXIST DO SO AS A MEANS TO PROTECT RESIDENTS FROM EXCESSIVE -- BUSINESSES ASKING FOR RELAXED ON NOISE, SOUNDS HOW WILL WE BALANCE THAT WITH THE QUALITY OF LIFE OF RESIDENTS DOWNTOWN. I THINK IT TIES BACK TO THE STAKEHOLDER AND HOW WE ENGAGE THE BROADER COMMUNITY TO ENSURE THAT THE INTEREST OF ONE GROUP DOESN'T DEPRIORITIZE THOSE OTHERS. 
          >> MILLER: I THINK THAT'S A VERY GOOD POINT, AND I WE'VE HAD THAT CONVERSATION. THE CITY MANAGER AND I MET RECENTLY WITH ONE GROUP OF BUSINESS OWNERS AND KIND OF SAID THE SAME THING. 
          IT'S LIKE WE UNDERSTAND THAT SOME PEOPLE WANT TO SEE X, BUT OTHER PEOPLE ABSOLUTELY DO NOT -- MAY NOT WANT TO SEE THAT SAME THING. 
          AND SO WE ABSOLUTELY WANT TO MAKE SURE THAT WE'RE HEARING FROM ALL PERSPECTIVES, SO THAT WE CAN BALANCE THAT AND NOT TILT TOO FAR ONE -- 
          EITHER DIRECTION. >> MCKEE-RODRIGUEZ: AND THEN IN THINKING ABOUT ENVIRONMENTAL AND SUSTAINABILITY CONCERNS, WE JUST HAD A WHOLE CONVERSATION WITH SAWS, 57 SLIDES AND A BUNCH OF CONVERSATION, WILL THE NEW STRATEGIC PLAN INCLUDE MEASURABLE SUSTAINABILITY GOALS FOR THE RIVERWALK SUCH AS WATER CONSERVATION, NATIVE PLANTINGS AND ENERGY EFFICIENCIES RATHER THAN SOLELY FOCUSING ON BUSINESS 
          GROWTH. >> MILLER: ABSOLUTELY. I DIDN'T HIGHLIGHT THAT, 
          BUT ABSOLUTELY, THAT IS DEFINITELY THE INTENT. >> MCKEE-RODRIGUEZ: AND WHEN DO WE ANTICIPATE THIS STUDY WILL BE DONE. FISCAL YEAR '26. 
          SO THE END OF '26? >> MILLER: OBVIOUSLY AS WE HEAR FROM THE CONSULTANT TEAMS THAT RESPOND TO THE RFP, WE'LL GET A BETTER IDEA OF HOW QUICKLY THEY THINK WE CAN MOVE, BUT WE, FOR SURE, WANT THE STRATEGIC PLAN 
          TO BE COMPLETED BY -- IN THIS FISCAL YEAR. >> MCKEE-RODRIGUEZ: FOR SURE. HOW WERE THE PREVIOUS CAPITAL IMPROVEMENTS 
          FUNDED? >> MILLER: SO THE BULK OF THE MASTER PLAN THAT I MENTIONED, THE 18.7, CAME FROM THE RIVERWALK FUND. AND, AGAIN, THAT MONEY COMES FROM THE LEASE REVENUE. AND IT IS LIMITED TO BEING SPENT ON IMPROVEMENTS IN THE RIVERWALK. 
          SO YOUR POINT ABOUT OTHER FUNDING SOURCES SETTING THAT ASIDE, BUT THE FUNDS THAT COME FROM THE RIVERWALK FUND, THAT'S -- LIKE A SPECIAL USE FUND THAT IT IS SPECIFICALLY FOR THOSE RIVERWALK IMPROVEMENTS AS A RESULT 
          OF THAT LAWSUIT IN EARLY 2000. >> MCKEE-RODRIGUEZ: AND WE ANTICIPATE THAT THAT'S HOW WE'LL BE ABLE TO FUND THIS NEXT PHASE. 
          >> WALSH: THAT'S HOW WE WOULD PROPOSE TO. BUT DEPENDING ON WHAT THE IMPROVEMENTS ARE, YOU KNOW, IT MAY NOT BE POPULAR, BUT AS PART OF THE STRATEGIC PLAN, WE PROBABLY OUGHT TO LOOK AT WHAT THOSE PATIO LEASES, WHAT THOSE RATES ARE. THEY PROBABLY HAVEN'T BEEN ADJUSTED IN A WHILE. AS SHANNON MENTIONED, THAT HAS BEEN THE FUNDING SOURCE. ACTUALLY THE LEGAL ARGUMENT BACK DECADES AGO WAS THAT FOLKS THAT WERE LEASING THE PROPERTY FOR BUSINESSES WERE ARGUING THAT THE CITY WAS TAKING THE MONEY AND NOT MAKING ANY IMPROVEMENTS, SO AS PART OF THE SETTLEMENT AND THE CONCLUSION OF THAT, ALL THAT MONEY GETS DEPOSITED IN ONE SPECIAL REVENUE ACCOUNT AND WE'VE UTILIZED THAT TO MAKE THE IMPROVEMENTS OVER TIME. AND SO THAT WOULD BE A PRIMARY -- PRIMARY VEHICLE, AND WE SHOULD PROBABLY LOOK AT, AS WE GO THROUGH THIS, MAYBE 
          ADJUSTMENTS FOR HOW WE'RE COMPENSATED. >> MILLER: PROJECTED REVENUE IS A LITTLE OVER 800,000 A YEAR FROM THE RIVERWALK BUSINESSES. 
          >> MCKEE-RODRIGUEZ: SO IT WAS -- I GUESS TO SAVE A LITTLE BIT OF TIME, IF YOU WOULDN'T MIND IN A FOLLOW-UP MEMO SHARING WHAT THE CONTRIBUTIONS TO THIS FUND HAVE LOOKED LIKE FROM THE TIME OF THE LAST PLAN WAS DONE FROM 
          2008 TO 2022 TO WHAT WAS -- >> WALSH: AND THE EXPENSE, YEAH, THE INVESTMENT. BECAUSE THE $500,000 A YEAR ISN'T NECESSARILY MAKING SENSE TO ME FOR THE $18.7 MILLION, SO I 
          DON'T KNOW WHAT EXTRA -- >> WALSH: MY GUESS IS THAT OVER TIME AND THERE WERE ELEMENTS, YOU KNOW, BECAUSE YOU'RE TALKING ABOUT ALMOST 20 YEARS, 
          [03:05:02]
THERE MAY HAVE BEEN ELEMENTS OF CONTRIBUTIONS FROM OTHER FUNDING SOURCES OR OTHER PROJECTS HAPPENING DOWNTOWN, BUT WE'LL PIECE THAT TOGETHER 
          BACK TO 2008. >> MCKEE-RODRIGUEZ: OKAY. APPRECIATE YOU. 
          THANK YOU SO MUCH. THANK YOU, MAYOR. >> MAYOR JONES: CHAIR 
          KAUR? >> KAUR: THANK YOU, MAYOR. 
          THANK YOU FOR THIS PRESENTATION. AND THANK YOU TO THE STAKEHOLDERS THAT ARE HERE, MARCO, THANK YOU FOR BEING HERE, AND TRISH FROM CENTRO IS ALSO HERE. WE'VE BEEN TALKING ABOUT -- AND, OF COURSE, ALL OF OUR CITY STAFF AND CCDO FOR THE WORK THEY DO. WE'VE BEEN TALKING ABOUT THE RIVERWALK FOR A WHILE AND A LOT OF FOLKS ALWAYS THINK, WHEN YOU THINK OF SAN ANTONIO, YOU THINK OF THE RIVERWALK, AND YET A LOT OF TIMES WE SOMETIMES DON'T GIVE IT THE ATTENTION THAT IT NEEDS, AND I KNOW THAT'S WHAT OUR STAKEHOLDERS FEEL, IT'S NOT GETTING AS MUCH ATTENTION AS SOME OF THE STUFF ON THE GROUND IS. 
          I'M EXCITED FOR THE STRATEGIC PLAN. I THINK THE BOARD HAD DONE A REALLY GOOD JOB. MARCO, I DON'T KNOW IF YOU WANT TO COME UP AND SHARE -- I KNOW WE'VE HAD A CHANCE TO TALK AND I KNOW YOU SENT OUT SOME THINGS THAT WERE CONCERNS THAT WE'VE BEEN ABLE TO ADDRESS, IF YOU WANT TO 
          HIGHLIGHT ANY OF THAT, TOO. >> YEAH, THANK YOU, COUNCILWOMAN. AND I NEED TO SAY THANK YOU TO ALL OF YOU FOR PAYING ATTENTION TO ONE OF THE TOP TWO ATTRACTIONS IN THE STATE. YOU KNOW, WE HAVE THE ALAMO AND THE RIVERWALK. 
          I HAVE TO TELL YOU, THE LAST TWO MONTHS WE'VE ACTUALLY SPENT A LOT OF TIME WITH CITY STAFF, WITH THE CITY MANAGER'S OFFICE, BOTH ERIK AND MARIA VILLAGOMEZ HAVE BEEN VERY HELPFUL. SHANNON MILLER, WE ALSO MET WITH KRYSTAL JONES ABOUT SOME PROJECTS THAT YOU'LL BE SURPRISED COMING UP IN DECEMBER. WE DID A VERY QUICK SURVEY IN 2023, WE HAD ABOUT 230 RESPONDENTS AND ABOUT 1/3 OF THE RESPONDENTS WERE PEOPLE WHO WORK ON THE RIVERWALK, ACTUALLY SERVERS -- AUDIO] -- AND WE WERE VERY IMPRESSED WITH THE RESULTS. 
          AND I'LL BE HAPPY TO SHARE THAT SURVEY WITH ALL OF YOU. 
          WE HAVE A VERY -- THREE PARTS TO IT, SUMMARY AND ALL THAT. 
          AND THE COMPLETE SURVEY, SO I NEED TO ALSO TELL YOU, IT WAS ACTUALLY FILLED OUT MORE BY LO LOCALS THAN VISITORS, IT WAS ALMOST LIKE 80% LOCAL, 20% VISITOR, AND THERE WERE FIVE AREAS THAT REALLY WE WOULD LIKE TO CONCENTRATE ON THAT. THE OTHER PERSON I WANT TO SAY THANK YOU PUBLICLY IS CHIEF OF POLICE, MCMANUS, HE'S BEEN VERY, VERY INVOLVED. 
          WE'VE HAD SOME INCIDENTS WHERE HE'S VERY, VERY QUICK RESPONDING. 
          HE'S ATTENDED PROBABLY FOR THE LAST TWO MONTHS ABOUT SIX MEETINGS WITH US. I REPRESENT ONE OF THE TRUSTEES AND FOUNDER OF THE RIVERWALK BUSINESS GROUP IS REALLY A GROUP OF OWNERS THAT OPERATE ABOUT 20 RESTAURANTS AND THREE HOTELS. AND BASICALLY, THEY'RE WORKING VERY CLOSE TOGETHER TO IMPROVE THE RIVERWALK. 
          AND WE HAVE SO MANY IDEAS AND ALL THAT. MAYOR JONES, THANK YOU FOR ASKING ALL THE QUESTIONS AND THANK YOU TO YOUR STAFF FOR RESPONDING. WE SENT A VERY NICE LETTER WITH A LOT OF ISSUES ABOUT SIX WEEKS AGO, AND YOU WERE -- WITHIN 24 HOURS, YOUR CHIEF OF STAFF WAS ON BOARD, SO WE'RE VERY GRATEFUL TO THAT. 
          THE FAST RESPONSE THAT WE'RE GETTING. NONE OF THIS WILL BE POSSIBLE, I HAVE TO TELL YOU, GIVE CREDIT TO THREE PEOPLE HERE. 
          CITY GOVERNMENT, CENTRO SAN ANTONIO, GREAT LEADER WITH TRISH DEBERRY, SHE'S BEEN ON TOP SINCE DAY ONE, AND VERY HAPPY TO ALSO WELCOME BACK MARIO BASS WHO IS THE CEO OF VISIT SAN ANTONIO AND WE'VE HAD A LOT OF CONVERSATIONS WITH NAR MARIO, AND EVEN LAST NIGHT WE HAD A CHANCE TO TALK FOR 15 MINUTES AT A PUBLIC MEETING AT DISTRICT 9. 
          SO THERE'S A LOT TO DO, WE'VE ALSO ASKED OUR CITY MANAGER IF HE COULD PLACE SHANNON MILLER AS THE CHAIR OF THE TASK FORCE. I THINK SHE HAS THE KNOWLEDGE TO REALLY HANDLE ALL THE TASK FORCE AND ALL THE RESEARCH AND ALL THAT, AND WHERE WE GO FROM HERE. SOMEONE ASKED ABOUT THE CITY ORDINANCE, WE HAVE ABOUT FIVE CITY ORDINANCES WHO ARE VERY, VERY OLD AND NEED TO BE UPDATED. WE'VE ACTUALLY SORT OF TAKEN A LITTLE LONGER HERE, BUT THERE'S A LOT OF NEW TECHNOLOGY ABOUT THE SOUND. THERE ARE SPEAKERS THAT DON'T HAVE TO GO SIDEWAYS ON THE RIVERWALK AND JUST PLAY BACKGROUND MUSIC. THERE'S A LOT OF PEOPLE REALLY WILLING TO HELP. BY THE WAY, WE'RE INVESTING IN ALL OF THIS THROUGH THE LEASES, ALL THE BUSINESS OPERATORS ARE PAYING FOR THE LEASE TO THE CITY, AND WE'RE USING THAT MONEY TO PAY FOR THE STUDY. 
          THE OTHER SOURCE OF MONEY COULD BE ANY HOTEL TAX THAT YOU -- YOU KNOW, THE CITY RECEIVES 7% FOR THE CITY, 2% FOR THE CONVENTION CENTER. 
          THE STATE KEEPS 6% AND THE COUNTY KEEPS 1.75. SO WE'RE BASICALLY 
          [03:10:03]
CONNECTING 16.75 HOTEL TAX PRESENTLY, AND DEPENDS ON WHAT HAPPENS IN THE NOVEMBER ELECTION, THAT COULD GO TO 17%. SO ANY HOTEL TAX CAN BE USED FOR A PROJECT LIKE THIS, ANY IMPROVEMENTS ON THE RIVERWALK OR ANY TOURISM ATTRACTION. SO I DON'T KNOW IF YOU HAVE ANY OTHER 
          QUESTIONS. >> KAUR: THAT'S PERFECT. >> THE KEY IS REALLY TO IMPROVE THE EXPERIENCE OF THE RIVERWALK. THE ONLY BAD -- AUDIO] -- WE HAVE HAD A TREND FOR THE PAST THREE YEARS WHERE SALES -- CONSTRUCTION, LATELY, LACK OF PARKING, HOT WEATHER. 
          THERE WAS JUST MANY, MANY REASONS, BUT THE LAST THREE YEARS, AND THIS PAST SUMMER, I DO SURVEY ON A MONTHLY BASIS THE SALES OF THE RESTAURANTS. WITHOUT DISCLOSING EACH SPECIFIC RESTAURANT, BUT THIS SUMMER, WE'RE BASICALLY EXPERIENCING -- WE'VE HAD A DROP TH BUIN BUSINESS OF ABOUT 11 TO 12TH% IN THE 12% OF THE MAJORITY OF THE RESTAURANTS WE SURVEY. WE'RE HAPPY TO ANSWER ANY QUESTIONS, BUT WE SUPPORT THIS PROGRAM WITH OPEN ARMS AND WE THANK YOU FOR LISTENING TO THE BUSINESS GROUP AND ALL THE OPERATORS AND INVESTORS. 
          THERE'S MORE PROJECTS COMING UP, I'LL LEAVE YOU IN SUSPENSE THAT WE -- ONE OF THE NUMBER FIVE ITEMS, NUMBER FIVE WAS THAT GIVE ME A REASON TO COME BACK TO THE RIVERWALK, AND ONE WAS CONVERT THE RIVERWALK INTO AN ART GALLERY, SO SOMETIME IN DECEMBER YOU'RE GOING TO BE A NICE 
          SURPRISE WITH A NEW PROJECT COMING UP. >> KAUR: THANK YOU SO MUCH, MARCO. THANK YOU FOR YOUR WORK AND LEADERSHIP THERE. 
          AND THE SUMMER PIECE WITH BUSINESSES IS REALLY HARD. 
          I KNOW, I'VE TALKED ABOUT THIS A COUPLE TIME, BUT WE RAN A MUSIC TO BUSINESS PROGRAM THIS SUMMER AND WE ACTUALLY -- OUR FIRST SPOT WAS HEUG MAN'S OASIS, IT'S A LITTLE TEE I CAN BAR RIGHT HERE ON THE RIVER AND WE HAD A PERSON DOING LIVE RIVER ON THE RIVER AND THEY WERE SUPER GRATEFUL FOR IT. BECAUSE MUSIC BRINGS PEOPLE OUT. 
          WE'RE TRYING OUR BEST TO SEE WHAT WAYS WE CAN HELP TO SUPPORT OUR COMMUNITY. AND I THINK THE ONE THING, IF YOU'VE EVER TRIED GOING TO THE RIVERWALK AND YOU'RE NOT FROM HERE, THE LA VILLITA FOLKS ALWAYS TELL US AND A LOT OF OTHER BUSINESSES, THEY DON'T KNOW HOW TO GET THERE. PEOPLE ARE JUST ASKING, HOW DO I GET TO THIS ONE SPOT? AND IF YOU'RE LOOKING ON A MAP, IT'S LIKE -- YOU LOOK LIKE YOU'RE STANDING THERE, BUT YOU'RE NOT THERE. 
          IT'S UNDERGROUND, OR IT'S ON THE RIVER LEVEL. AND SO WAY FINDING IS ON THE RFP, IT'S A HUGE THING. MAKING SURE THAT WE HAVE BETTER WAYFINDING OPPORTUNITIES, WHETHER IT'S THROUGH MAPS AND BEING ABLE TO DECIPHER THAT. AND THEN ALSO CONTINUE TO INVEST IN THE INFRASTRUCTURE COMPONENT AS WELL. 
          THE LAST THING I WANTED TO SAY ABOUT THIS, AS I WAS TALKING TO SOME FOLKS FROM SARA YESTERDAY, AND THEY HAD MENTIONED THAT THEY ACTUALLY DO THE OPERATIONS AND MAINTENANCE FOR THE RIVER EVERYWHERE EXCEPT FOR ON THE RIVERWALK. AND THEY DO A PRETTY GOOD JOB. 
          SO I WOULD LIKE TO ADD TO SEE IF THAT'S A COMPONENT THAT COULD BE ADDED TO THE DISCOVERY OF THIS RFP, WHETHER IT COULD SAVE US SOME RESOURCES 
          FOR THEM TO BE ABLE TO DO THAT. >> WALSH: NO, PROBABLY 
          NOT. >> KAUR: OKAY. >> WALSH: ONLY BECAUSE WE'VE HAD THOSE CONVERSATIONS. PART OF OUR CONVERSATION WITH DERRICK AND THE STAFF OVER THERE IS LET'S FIGURE OUT HOW TO WORK TOGETHER TO MAINTAIN, ESPECIALLY FROM AN OPERATIONS AND MAINTENANCE OR EVEN A FLOODING STANDPOINT. BUT IT CAN'T KOSES US 
          MORE. >> KAUR: YEAH. >> WALSH: AND THAT'S BEEN KIND OF THE ISSUE THAT HAS BEEN UNRESOLVED. AND I THINK THAT'S MORE -- 
          THE RIVER AUTHORITY. >> KAUR: DEFINITELY JUST EXPLORATION. 
          >> WALSH: AND OBVIOUSLY I THINK WHAT WOULD COME INTO PLAY, WHO'S COLLECTING THE REVENUE ON THE LEASES. SO IT'S A LITTLE BIT MORE COMPLICATED. I THINK, BUT I APPRECIATE THAT DEREK SENTENCE ME A MESSAGE EARLIER THAT THAT MIGHT COME UP AND I THINK WE NEED TO DO A LITTLE MORE WORK WITH THEM. IT'S ALMOST LIKE THE SAWS CONVERSATION A SECOND AGO, THE PUBLIC DOESN'T REALLY -- IT DOESN'T MATTER WHO'S PLANTING THE FLOWERS OR HOLDING THE GATES, IT'S JUST GOT TO WORK AND MAKE SENSE. 
          BUT IT SHOULDN'T BE MORE EXPENSIVE OVERALL. SO I THINK WE NEED TO HIT 
          THAT BALANCE. >> KAUR: YEAH, ABSOLUTELY AGREE THERE. 
          AND THEN JUST ONE LAST THING THAT I WANTED TO ADD ON -- I LOST MY TRAIN OF THOUGHT. WELL, SEE, CONTINUING TO -- OH, I DID REMEMBER. THIS IS GOING TO BE THE FIRST RFP, I THINK, THAT WE CAN'T DO OUR SBEDA POINTS ON, SO I LOOKED AT THE.S ATHE POINTS AND I JUST WANTED TO EXPRESS MY SADNESS ABOUT IT, NOT THAT WE CAN DO ANYTHING. BUT THERE'S FIVE POINTS LISTED IN THE RFP FOR -- THAT ARE VETERAN-OWNED BUSINESS AND THAT'S THE ONLY THING THAT'S 
          INCLUDED. >> IS IT VETERAN AND LOCAL -- 
          >> KAUR: VETERAN AND LOCAL. SO -- IT'S 10 OR FIVE. 
          >> MILLER: 10 FOR LOCAL PREFERENCE AND FIVE FOR VETERAN OWNER. 
          >> KAUR: THAT USED TO BE 10 FOR LOCAL AND THEN 10 FOR THE MINORITY PIECE IS 
          [03:15:05]
WHAT WE GOT TAKEN OUT. JUST SAYING THAT OUT LOUD, AND LET'S MONITOR TO MAKE SURE WE CAN STILL GET A GOOD REPRESENTATIVE. 
          THANKSGIVING. THANKS, MAYOR. >> MAYOR JONES: CHAIR 
          GALVAN? >> GALVAN: THANK YOU, MAYOR. 
          AND THANK YOU, SHANNON FOR THE PRESENTATION AND THE BRIEFING WE HAD, I THINK, LAST WEEK. IT FEELS LIKE IT'S BEEN -- AUDIO] -- LOOKING FORWARD TO THE WORK COMING UP WITH THIS. 
          I ECHO A LOT OF SENTIMENTS THAT MY COUNCIL COLLEAGUE AND THE MAYOR HAVE POINTED OUT. THE EXTENSION POSSIBILITY, THE SCOPE OF WORK, LOOKING AT THE NORTHERN AND SOUTHERN PORTION OF THE RIVER, WHETHER IT'S THIS RFP OR FUTURE ONE, I THINK IT'S IMPORTANT TO BE SEAMLESS, WHETHER IT'S ACCESSIBILITY OR LIGHTING OR OTHER KIND OF WORK THAT'S DONE, THAT WAY IT'S A SEAMSLESS TRANSMISSION FOR VOKS USING IT ALL THE WAY THROUGH. I THINK IT'S ALWAYS WORTHWHILE. THE OTHER POINT ENSURING THAT RESIDENTS, WORKERS AND TENANTS ARE ALSO INVOLVED IN THIS, BUT DEFINITELY AN EMPHASIS ON THE RESIDENTS THAT UTILIZE IT FOR THE DAY-TO-DAY, I THINK THE CONVERSATION GENERALLY AROUND DOWNTOWN DEVELOPMENT WITHIN OUR MAIN ATTRACTION SITE, THINK ABOUT MARKET SQUARE OR ALAMODOME OR WHATEVER IT IS, THERE'S ALWAYS A CONVERSATION ABOUT AUTHENTICITY. 
          THAT REGULAR LIVABILITY, THAT REGULAR USE OF IT, PEOPLE WANT TO GO, WE WANT TO SEE THAT YOU'RE NOT JUST WALKING INTO A PLACE ONLY FOR TOURISTS, OF COURSE I DON'T THINK THE RIVERWALK IS, BUT KEEPING THAT FOCUS THERE THAT'S ALWAYS CRUCIAL THAT FOLKS DO COME, THIS IS WHERE RESIDENTS COME EVERY DAY, FOR SHOPPING, NOT JUST FOR WHEN YOU BRING YOUR FAMILY HERE ON VACATION. AND THEN THE LAST THING I WAS GOING TO SAY WAS THAT FOR -- I'M SORRY, TWO MORE QUICK THINGS. ONE OF THE THINGS I WAS GOING TO MENTION, I KNOW THERE'S SOME PIECES IN HERE WITHIN THE SCOPE OF WORK ABOUT -- I THINK IT WAS OR WITHIN LIKE LOOKING AT THE WILDLIFE RESTORATION OR THE [INDISCERNIBLE] THAT STILL KIND OF FLOWS TOGETHER WELL, WHETHER IT'S THE LIGHTING OR THE SIGNAGE, ALL THOSE ELEMENTS STILL WORK TOGETHER PRETTY WELL SO IT DOESN'T BECOME OVERSTIMULATING FOR WILDLIFE OR EVEN IMPACTFUL -- HARMFUL FOR [INDISCERNIBLE] PUT THERE. 
          AND THEN THE LAST THING WAS JUST THE COUNCILMEMBER MCKEE-RODRIGUEZ POINT ABOUT THE KIND OF DOWNTOWN VERSUS A LARGER LOOK AT THE CITY AND THE INVESTMENT WE'RE PUTTING HERE, I ABSOLUTELY AGREE WITH THAT, THINKING ABOUT THE SCALE INVESTMENT, I THINK IT'S ALWAYS INCUMBENT UPON US WHETHER IT'S THE BOND OR THE INVESTMENT WE'RE MAKING FOR THE COMMUNITY, I'M THERE WITH YOU. THANK YOU SO MUFF. 
          SO MUCH. THANK YOU, MAYOR. >> MAYOR JONES: CHAIR 
          VIAGRAN? >> VIAGRAN: I'LL KEEP THIS BRIEF. 
          WE NEED TO TALK ABOUT A FEW THINGS ON THE RFP. ONE IS THE TECHNOLOGY PLEPIECE. I WOULD LOVE TO SEE DIGITAL, I KNOW SOME PEOPLE HAVE TUESDAY NIGHT SPECIALS BECAUSE IT'S DOWNTOWN TUESDAY. 
          I DO LIKE THAT TRANSITION OVER TO DIGITAL. ALSO THE APPS WITH THE TECHNOLOGY. SO I WANT TO MAKE SURE WHOEVER HAVE HAS A GRASP OF THAT OF WHAT WE CAN DO AND THE GEOFENCING. EVERYTHING RIGHT NOW THAT'S WORKING DOWNTOWN, THAT'S USING AN APP AND ADVERTISING, I THINK WE NEED TO TIE IT INTO WHAT WE'RE DOING ON THE RIVERWALK. 
          THE OTHER IS AS WE LOOK AT OUR MILITARY FAMILIES THAT HEAD DOWNTOWN, OUR LOCALS AS WE GET THEM THERE AND THEN MAKE SURE THAT WE CAN LOOK AT HOW WE -- WE WORK ON THAT, WHOEVER -- WHEN WE TALK OUR STRATEGIC PLANS. 
          WHAT I'M GOING TO -- WHAT I WOULD LIKE TO SEE IN THE FUTURE IS DEFINITELY THOSE LEASES, WHO HAS WHAT LEASES AND WHAT SORT OF -- DOES THAT WORK WITH THE DIRECTION OF THE CITY AND THE KIND OF WHERE WE'RE MOVING. 
          AND I WON'T BRING UP SPECIFIC PLACES THAT WERE AT THE RIVERWALK THAT I'M -- DON'T NEED TO BE THERE. AND -- BUT I THINK THAT'S KIND OF WHAT WE WANT TO SEE IN TERMS OF FAMILY-FRIENDLY, GETTING PEOPLE OUT THERE. YOU KNOW, WHO OWNS WHAT AND WHO'S INVESTING IN WHAT WE DO. SO THAT'S REALLY -- I'M -- I'M EXCITED ABOUT THIS. I THINK WHEN WE TALK ABOUT THE RIVERWALK, WHAT IT DOES, THE AMOUNT OF FREE ADVERTISEMENT WITH GET BECAUSE IT'S ONE OF THOSE SHOTS, EVERY BASKETBALL GAME, EVERY FINAL FOUR, IF WE'RERE ON ESPN FOR THE RODEO, THEY TAKE A RIVERWALK SHOT, SO WE LOVE THAT. 
          [03:20:02]
I WANT TO THANK TRISH AND HER CENTRO TEAM FOR WORKING SO HARD. 
          THE ONE THING I WOULD LIKE TO SEE, WHICH I THINK CENTRO HAS DONE A GOOD JOB AND MAYBE WE CAN TAKE THAT DOWN TO OUR RIVERWALK BUSINESSES IS HOW DO YOU INCORPORATE THE LOCALS, WHETHER IT'S THAT MUSICIAN NIGHT OR WHETHER IT'S HAVING A VENDOR OR AN ARTIST FEATURED IN THEIR LOCATION AND RESTAURANTS WHERE THEY'RE SELLING. I THINK THAT SHOULD BE SOMETHING THAT WE -- WE'RE MOVING FORWARD WITH, TOO. 
          AND I'M EXCITED TO SEE HOW THIS MOVES FORWARD, BUT PLEASE, TECHNOLOGY. 
          THE LESS PAPER ON THE RIVER, THE BETTER. THANK YOU. 
          >> MAYOR JONES: FILES ARE IN THE COMPUTER, THAT'S CORRECT. 
          CHAIR MEUN MO MUNGIA. >> MUNGIA: THANK YOU, MAYOR. A COUPLE QUICK THINGS. I ECHO THE POINT ABOUT BALANCE APPROACH, BUT, YOU KNOW, THE RIVERWALK, I WOULD SAY, THE PROBABLY ONE OF THE CROWN JEWELS OF SAN ANTONIO. IT'S EXTREMELY IMPORTANT AND DEFINITELY HAVING TO BALANCE OUR FUNDING THAT GOES TO ALL OUR DISTRICTS IS REALLY IMPORTANT, BUT THAT IS -- IS A KEY TO SAN ANTONIO. 
          NOT JUST TOURISM, BUT COMMERCE AND LOCALLY, TOO, AND IT'S A VERY HISTORIC PLACE OF INVESTMENT. SO I THINK, NUMBER ONE IS, YOU KNOW, MAKING SURE -- MAINTAINING, HISTORICAL CULTURAL GOALS OF THE RIVERWALK IS EXTREMELY IMPORTANT. AND COUNCILWOMAN VIAGRAN ALLUDED TO IT, BUT THERE ARE CERTAIN THINGS I DON'T THINK BELONG ON THE RIVERWALK. ONE THING IS GONE. I'LL SAY IT. 
          HOOTERS, I DON'T KNOW WHY THAT'S THERE OR WAS THERE, I GET SOME OF THESE PLACES DO BRING IN MONEY, OF COURSE, ON THE RIVERWALK, BUT SOME PLACES, I DON'T THINK, BELONG THERE. THAT'S JUST MY OPINION. 
          ADA ACCESSIBILITY IS VERY IMPORTANT, SO HOPEFULLY YOU'LL BE TALKING TO DISABILITYSA WHERE THERE'S ACTUALLY A PARADE WE'RE PARTICIPATING IN THIS WEEKEND. THAT'S REALLY IMPORTANT. AND ALSO, YOU KNOW, IT'S ONE THING TO HAVE ACCESSIBILITY, BUT FOR FOLKS TO KNOW WHO ARE NOT FROM SAN ANTONIO, WHERE CAN THEY -- WHERE ARE THE ACCESS POINTS TO ACCESSIBILITY IS VERY IMPORTANT. SHADE AND MISTERS, 100% AGREE. AS A STAFFER, I WOULD WALK ACROSS DURING LUNCH SOMETIMES AND WALK THIS AREA OF THE RIVERWALK, IT IS UNBEARABLE IN THE SUMMERTIME. YOU JUST CAN'T DO IT. AND ESPECIALLY, YOU KNOW, IF YOU'RE TRYING TO EAT OUT THERE, IT'S EXTREMELY DIFFICULT. 
          SO THAT'S IMPORTANT. ESPECIALLY AS OUR SUMMERS GET WORSE AND HOTTER. 
          ART IS VERY IMPORTANT. THERE ARE SO MANY BRIDGES THAT DON'T HAVE ANYTHING UNDERNEATH THEM THAT COWL EASILY HAVE SOME ART PIECES. 
          FUNCTIONAL ART AS WELL, I THINK, IS REALLY IMPORTANT. 
          ART WITH LIGHTS IS VERY IMPORTANT. AND THEN ONE THING THAT COUNCILWOMAN KAUR BROUGHT UP THAT I'VE MENTIONED BEFORE IS LANDSCAPING IMPROVEMENTS ALONG THE RIVERWALK, BUT LANDSCAPING IMPROVEMENTS TA GO TO STREET LEVEL. TO THE QUAM'S POINT, YOU COULD BE RIGHT OVER THE RIVERWALK ON THE STREET AND NOT REALIZE YOU'RE AT THE RIVERWALK. 
          SO IF ALL THOSE STREET POINTS THAT GO OVER THE RIVERWALK COULD HAVE LANDSCAPING FROM THE RIVER GOING NORTH ONTO THEM, I THINK THAT IS A REALLY GOOD WAY FINDING MECHANISM. AND ALSO LET'S YOU KNOW WHEN YOU'RE A DRIVER, THE CONTEXT OF WHERE YOU ARE IN DOWNTOWN AND THAT YOU'RE OVER A RIVERWALK. I THINK, IS VASTLY IMPORTANT. 
          AND DOES THIS PLAN CONSIDER PARTS OF THE RIVERWALK THAT GO SOUTH 
          OF CESAR CHAVEZ? >> MILLER: SO THE PROJECT AREA GOES BASICALLY TO 
          THE MARINA, LIKE TO NUEVA. >> MUNGIA: OKAY. 
          AND WHY IS IT JUST THAT PARTICULAR SECTION. >> MILLER: BECAUSE THAT'S WHERE THE RIVERWALK CAPITAL IMPROVEMENT ADVISORY BOARD -- LIKE THAT'S THE AREA WHERE THERE ARE LEASES AND THAT'S WHERE THE REVENUE COMES IN FROM AND THAT'S THE AREA THAT'S MANAGED BY CCDO. 
          SO THAT WAS THE PRIORITY FOR THIS -- PARTICULARLY BECAUSE IT'S PRIMARILY BEING FUNDED, THE STUDY'S BEING FUNDED BY -- OUT OF THE FUND. 
          >> MUNGIA: YEAH, ABSOLUTELY. VERY FAIR. 
          I'M NOT SURE HOW MANY TOURISTS THAT STAY ON THE RIVERWALK REALIZE THAT IT GOES ALL THE WAY SOUTH TO COUNCILWOMAN VIAGRAN'S DISTRICT, AND VERY BEAUTIFUL NATURE ASPECT OF IT ON THAT SIDE OF THE RIVERWALK, SO I WANT TO MAKE SURE THAT FOLKS KNOW THAT THEY CAN DO BOTH ON THE RIVERWALK. 
          >> MILLER: AND CERTAINLY, THAT WOULD BE INCLUDED AS PART OF WAY FINDING ASSESSMENT, MAKING SURE THAT PEOPLE DO KNOW THAT THERE'S -- IT DOESN'T 
          STOP HERE, THERE'S MORE. >> MUNGIA: YEAH. AND THIS MIGHT BE CONTROVERSIAL, BUT SOME PLACES, I STILL THINK WE NEED RAILINGS. 
          BECAUSE IF YOU'RE WALKING IN A CROWD AND YOU'RE THE ONE THAT'S ON THE EDGE, IT FEELS LIKE YOU'RE GOING TO FALL OVER. AND OBVIOUSLY IT'S NOT THAT DEEP, BUT NOBODY WANTS TO FALL BECAUSE SOMEONE IN THE CROWD BUMPED THEM. SO I DEFINITELY THINK RAILING IS IMPORTANT ALONG THE RIVERWALK. OF COURSE, MAKING SURE THAT THERE'S STILL THAT ADA ACCESSIBILITY. THANK YOU. APPRECIATE IT. 
          COUNCILWOMAN MEZA. >> GONZALEZ:  GONZALEZ. >> GONZALEZ: THANK YOU FOR THE PRESENTATION. I HAD THE SAME COMMENTS AS COUNCILMEMBER MUNGIA, 
          [03:25:02]
A GENTLEMAN HAS COME IN RECENTLY DURING CITIZENS TO BE HEARD TALKING ABOUT THAT LACK OF ACCESSIBILITY. DO YOU HAVE ANY MEMBERS 
          OF THE ADA COMMUNITY ON THE COMMITTEE. >> MILLER: SO THE 
          COMMITTEE IS STILL BEING FORMED. >> GONZALEZ: OKAY. 
          >> MILLER: WE'RE STILL INVITING PEOPLE TO PARTICIPATE. 
          SO ABSOLUTELY. I FORGET WHICH ONE OF YOU SAID IT, BUT SOME OF IT IS ALSO JUST ABOUT CREATING AWARENESS, BECAUSE THE RESULTS OF THE MASTER PLAN REALLY WAS ACCESSIBILITY ALONG THE WHOLE ENTIRE HORSESHOE, BUT PEOPLE DON'T ALWAYS KNOW THAT. AND SO HELPING PEOPLE KNOW HOW THEY CAN GET TO AND FROM STREET LEVEL AND RIVER LEVEL AND ACCESS 
          BOTH SIDES OF THE RIVER AS WELL. >> GONZALEZ: WHAT TYPE OF ENHANCEMENTS WERE BUSINESS OWNERS TALKING ABOUT, JUST LIKE A FEW? 
          >> MILLER: ONE OF THE EXAMPLES IS WHAT COUNCILWOMAN VIAGRAN MENTIONED ABOUT TECHNOLOGY. YOU KNOW, THERE ARE -- DIGITAL MENU BOARDS ARE NOT ALLOWED ON THE RIVER CURRENTLY. 
          AND WHEN THAT REGULATION WAS CREATED, YOU CAN IMAGINE THE QUALITY OF THE TECHNOLOGY THEN. AND SO THEY WERE -- YOU COULD FNT REALLY CONTROL LIGHT LEVELS. THEY WOULD GLARE, IT WASN'T THE KIND OF ENVIRONMENT THAT PEOPLE WANTED ON THE RIVER. BUT THE TECHNOLOGY IS VERY DIFFERENT NOW, AND SO WE -- YOU KNOW, THEY HAVE THE ABILITY TO REGULATE LIGHT LEVELS AND THINGS LIKE THAT, THEY'RE MUCH MORE TASTEFUL. 
          AND SO THAT'S A GREAT EXAMPLE OF SOMETHING THAT MIGHT MAKE SENSE TODAY THAT DIDN'T MAKE SENSE 20 YEARS AGO WHEN THE REGULATIONS WERE 
          DRAFTED. >> GONZALEZ: OKAY.  AND WHEN WAS THE LAST ACCESSIBILITY IMPROVEMENT, THE MAJOR ONE DONE. 
          >> MILLER: 2022 WAS WHEN THAT LAST SECTION OF THE MASTER PLAN WAS COMPLETED, BUT THEN THE CURRENT PROJECT THAT'S GETTING READY TO START ALSO ADDRESSES SOME ADDITIONAL ADA CONCERNS ALONG THE MAIN CHANNEL. 
          >> GONZALEZ: OKAY. THANK YOU SO MUCH. APPRECIATE IT. 
          COUNCILWOMAN CASTILLO? >> CASTILLO: THANK YOU, MAYOR, AND THANK YOU FOR THE PRESENTATION AS WELL. AS FOLKS HAVE ALREADY MENTIONED, I THINK THERE IS VALUE IN INCLUDING DISABILITYSA WITH THE PUBLIC INPUT PROCESS. THIS IS SOMETHING THAT I KNOW MATTHEW, A D5 RESIDENT HAS BEEN ENCOURAGING US TO INCLUDE, ESPECIALLY WHEN IT COMES TO ACCESSIBILITY DOWNTOWN. AND, YOU KNOW, OVERALL WITH IMPROVEMENTS AND INVESTMENTS MADE ON THE RIVERWALK, AS SOMEONE WHO REALLY LOVED WORKING ON THE RIVERWALK AS A WAITRESS AND WHERE THE MAJORITY OF OUR CONSTITUENTS WHO WORK IN HOSPITALITY AS SERVERS, THE VALUE AND INVESTING IN THE RIVERWALK MEANS A RETURN THAT OUR CONSTITUENTS THEN SEE IN THEIR PAYCHECKS WHEN WE GET MORE FOLKS PATRONING THE RESTAURANTS AND GOING TO THE DIFFERENT FACILITIES DOWNTOWN. 
          SO I THINK THIS IS WELL WORTH INVESTMENT, BUT I DO, AGREE, RIGHT, IN TERMS OF THE LARGER SCOPE OF INVESTMENTS, DOWNTOWN, RIGHT, LOOKING AT HOW WE'RE MEETING THE NEEDS IN OUR COMMUNITIES. BUT THIS IS SOMETHING THAT, YOU KNOW, AGAIN, YOU KNOW, SOME OF MY STAFF MEMBERS I MET WORKING IN THE SERVICE INDUSTRY NOW WORK WITH US, SO WE UNDERSTAND THE IMPACT THAT -- WHETHER IT'S THE FINAL FOUR EVENTS AND THE INVESTMENTS ON THE RIVER MEAN TO OUR FAMILIES AND THEIR PAYCHECKS. 
          THANK YOU, MAYOR. COUNCILWOMAN SPEARS? >> SPEARS: THANK YOU SO MUCH. I APPRECIATE WHAT MY -- WHAT COUNCILWOMAN MEZA GONZALEZ WAS SAYING ABOUT THE ADA COMPLIANCE. THAT'S IMPORTANT. 
          THAT'S SOMETHING I HEAR A LOT ABOUT. I KNOW IT'S CHALLENGING TO PRESERVE THE INTEGRITY AND THE LOOK, SO I'M GLAD THAT Y'ALL ARE DOING THAT.  I DID WANT TO KNOW, IS THE ARTISAN RIVER THEATER A PART OF 
          THIS. >> MILLER: UH-HUH, YES. >> SPEARS: I GOT TO SAY, I CAN'T WAIT TO SEE -- THERE'S A LOT THAT HAS TO BE DONE THERE, RIGHT? THE ROOF AND PLUMBING? THERE'S A LOT OF IMPROVEMENTS THAT ARE NEEDED? IT'S STILL OUT OF COMMISSION. 
          >> MILLER: SO SOME WORK IS ALREADY APPROVED. I WAS LOOKING FOR -- I HAVE THE SPECIFIC INFORMATION, BUT THERE ARE LIKE SOME AV IMPROVEMENTS THAT ARE HAPPENING THAT ARE FUNDED AND SOME ADDITIONAL, LIKE, SMALL CELL AND INFRASTRUCTURE THINGS THAT WILL BE PRIVATELY FUNDED, BUT ONE OF THE OTHER THINGS THAT HAS COME UP IS POTENTIAL SHADE IN ARTISAN AS AN EXAMPLE. AND OTHER THINGS THAT WE CAN LOOK AT TO MAKE SURE THAT WE'RE PROTECTING THAT EXPERIENCE AND 
          IMPROVING IT AS WE CAN. >> SPEARS: THAT'S GOOD TO HEAR. 
          I'M GLAD TO HEAR ABOUT THE SHADE, TOO, BECAUSE IT DOES GET TOO HOT. 
          BUT -- SO I -- YOU KNOW, THE MAYOR MENTIONED THE EMPLOYEES ALONG -- YOU KNOW, FEELING SAFE, AND ACTUALLY OTHER RESIDENT WHOSE WALK IN THE AREA. 
          SO I AM HAPPY TO HEAR THAT CENTRO'S INVOLVED. I THINK THEY'RE A GREAT RESOURCE FOR THAT. AND THEN LOOKING AT IMPROVED LIGHTING. 
          MAYBE WE DO NEED MORE POLICE PRESENCE THERE AND SAFETY PATROLS. 
          I KNOW THAT'S MAYBE NOT POPULAR, BUT THAT'S MAYBE REALITY HERE. 
          SO -- AND THEN I ALSO WANTED TO SAY I'M GLAD THAT YOU'RE UTILIZING VISIT SAN ANTONIO. THEY'RE GOING TO BE GREAT AND HELPFUL AT THE MARKETING PIECE OF THAT. SO... AND I WANT TO ECHO WHAT COUNCILWOMAN VIAGRAN SAID ABOUT THE ACTIVE MILITARY AND VETERANS, EVERY TIME I'VE BEEN ON THE RIVER, THAT'S WHAT I SEE ARE OUR UNIFORMED ENLISTED MILITARY AND -- 
          [03:30:07]
SERVING THEM WELL IS IMPORTANT. SO I'M GLAD THAT YOU'RE GOING TO BE LOOKING AT HOW WE BALANCE THE NEEDS OF OUR VISITORS ALONG WITH OUR RESIDENTS, BECAUSE WE DO WANT IT TO BE SOMEWHERE THAT MORE WE USE AS A COMMUNITY, BUT -- MAYBE THAT'S JUST THE SEASONALITY OF IT. 
          SO AS WE STUDY THAT, THAT WOULD BE REALLY HELPFUL. AND I KNOW OTHER CITIES HAVE TRIED TO COPY OUR RIVERWALK TO THEIR DETRIMENT. 
          AND IT IS WITHOUT A DOUBT, A HUGE DRAW FOR OUR CITY, BUT I DO ALSO WANT TO BE MINDFUL THAT, YOU KNOW, WHEN WE'RE TALKING ABOUT EQUITY AND IMPROVING OUR CITY, THIS IS THE WEALTHIEST ZIP CODE IN THE CITY. 
          AND SO I WANT TO LOOK AT HOW WE'RE USING -- AND HOW WE CAN IMPROVE OTHER AREAS AND OTHER LANDMARKS ACROSS OTHER PARTS OF OUR CITY AS WELL. 
          SO THANK YOU. >> MAYOR JONES: HAS EVERYONE SPOKEN THAT WOULD LIKE TO SPEAK ON THIS TOPIC? OKAY. 
          GREAT. THANK YOU VERY MUCH FOR THE PRESENTATION. 
          A COUPLE OF THINGS I'D LIKE TO ADD TO THE RFP, AND YOU HAD SOME SUGGESTIONS HERE, I WANT TO MAKE SURE YOU HAVE ENOUGH SPECIFICITY, THOUGH, COUNCILMAN MUNGIA, SPOKE, FOR EXAMPLE, WHAT ABOUT LOOKING AT THIS FURTHER SOUTH? HOW MUCH SPECIFICITY DO 
          YOU NEED TO INCLUDE THAT IN THIS RFP. >> MILLER: I THINK I 
          UNDERSTOOD CLEARLY, YES. >> MAYOR JONES: OKAY. GOOD. 
          I WOULD ALSO LIKE US TO -- YOU KNOW, AS MUCH AS WE CAN HELP OURSELVES, INCLUDE IN THIS THE RESPONDENT'S ABILITY TO SPEAK TO HOW THEIR IDEAS CAN WORK TO REDUCE EMISSIONS IN THE AREA, THAT WOULD BE VERY HELPFUL. IT WOULD ALSO BE HELPFUL TO UNDERSTAND IF -- AGAIN, CHAIR MUNGIA MENTIONED OUR OWN PREFERENCES AS WELL ON THE TYPE OF FOLKS THAT WE'D LIKE TO SEE ON THE RIVERWALK, THE BEST REPRESENTATIVE OF OUR COMMUNITY, RIGHT? IS THAT SOMETHING, ERIK, THAT WE WOULD NEED TO INCLUDE AS PART OF THIS, OR MAYBE IS THAT 
          SOMETHING SEPARATE? >> WALSH: MAYOR, I THINK IT'S GOING TO COME OUT OF 
          THIS PROCESS. >> MAYOR JONES: OKAY. >> WALSH: THE -- IN 2008, I WAS MUCH YOUNGER IN THE ORGANIZATION, THE BIGGEST POINTS OF CONTENTION WERE WHO'S DOWN THERE AND WHAT'S THE BALANCE THAT COUNCILMAN MCKEE-RODRIGUEZ WAS ASKING ABOUT. BECAUSE YOU GET A VARIETY OF OPINIONS, IT'S THE LOCAL VERSUS THE OUT OF TOWNERS, AND SO I THINK IT'S GOING TO HAPPEN ORGANICALLY AS PART OF THAT PROCESS AND PROBABLY 
          PART OF THE ISSUES WE BRING BACK TO YOU GUYS. >> MAYOR JONES: ALL RIGHT. THAT'S HELPFUL. THANK YOU. 
          GREAT. I'LL LEAVE IT TO YOU. HEATHER OR ERIK, CAN YOU SUMMARIZE KIND OF THE MAIN THINGS THAT YOU'VE HEARD THAT YOU WANT TO 
          ENSURE ARE CAPTURED IN THIS RFP. >> WALSH: SHANNON, YOU 
          WANT TO TAKE A STAB. I'LL BACK YOU UP. >> MILLER: YES, ABSOLUTELY. SO I THINK OBVIOUSLY WE WANT TO FOCUS ON ACCESSIBILITY, WHICH WE HEARD -- I HEARD -- WE HEARD CLEARLY FROM SEVERAL OF YOU. MAKE SURE THAT WE'RE MAINTAINING THAT BALANCE OF KIND OF WHAT -- WHAT IS ON THE RIVER, WHAT TYPES OF BUSINESSES, WHAT OPPORTUNITIES PEOPLE HAVE, OPPORTUNITIES FOR ART. 
          I KNOW THAT IS A PRIORITY. SUSTAINABILITY ISSUES, SO LOOKING AT -- THE MAJOR MENTIONED REDUCE EMISSIONS, BUT ALSO, LIKE, TYPES OF PLANTINGS AND ALL OF THOSE KINDS OF THINGS, WATER CONSERVATION, THINGS THAT RELATE TO SUSTAINABILITY EFFORTS. 
          I THINK THOSE WERE SOME OF THE MAIN POINTS. I -- WE DO -- I DO HAVE STAFF HERE HELPING AND TAKING NOTES, AND SO WE WILL MAKE SURE THAT WE CAPTURED ALL OF YOUR COMMENTS AND AS WE ARE WORKING WITH THE CONSULTANT TEAMS AND LISTENING TO TH THEIR PROPOSALS, WE'LL BE SURE TO MAKE SURE THAT THE FEEDBACK FROM COUNCIL IS INCORPORATED. 
          >> WALSH: AND I'LL JUST ADD THAT MAKING SURE THAT WE GO THROUGH THE PUBLIC INPUT PLACE, IT'S INCLUDING EMPLOYEES AND RESIDENTS IN THE AREA, MAYOR, WE'LL MAKE SURE THAT IT'S CLEAR IN THE SCOPE THAT TA TASK 5 IS EXPECTED AND THEN WE'LL DO A FOLLOW-UP MEMO. 
          >> MILLER: OH, YES, DEFINITELY. PUBLIC SAFETY. 
          >> WALSH: PUBLIC SAFETY. AND WE'LL DO A FOLLOW-UP MEMO ON THE HISTORY OF REVENUE AND INVESTMENT IN 2008. THAT MIGHT TAKE US A LITTLE BIT OF TIME. WE'LL GET THAT TO YOU GUYS. 
          >> MAYOR JONES: THANK YOU VERY MUCH. APPRECIATE THAT. 
          >> MILLER: THANK YOU. >> MAYOR JONES: WE WILL RECESS INTO EXEC SESSION JUST FOR A SHORT TIME, SO I'D ASK MY COLLEAGUES TO REMAIN SEATED UNTIL I -- 
          >> SEGOVIA: MAYOR, I THINK WHAT I WANTED TO SAY, WE CAN SAY IN PUBLIC. WE'LL DISCUSS THE DETAILS TOMORROW IN EXEC. 
          >> MAYOR JONES: GO AHEAD, PLEASE. >> SEGOVIA: THANK YOU FOR THE OPPORTUNITY. IT SAVES ME FROM WRITING A SHORT E-MAIL TO THE COUNCIL. A QUICK UPDATE ON OUR TDS LITIGATION, JUST A REMINDER, THAT WAS A LITIGATION BY THE COMPANY THAT WAS MANAGING OUR SOLID WASTE TRANSFER STATION, WE COMPLETED A WEEK AND A HALF TRIAL YESTERDAY, WENT TO THE JURY TODAY, THEY CAME BACK WITHIN THE LAST HALF 
          [03:35:03]
HOUR, TDS WAS ASKING FOR OVER 20 MILLION IN DAMAGES. 
          THE JURY AWARDS THEM ZERO TODAY, SO BIG VICTORY. A LOT OF THANKS TO THE SOLID WASTE DEPARTMENT AND TO THE LITIGATION TEAM, AND WE'LL GIVE YOU 
          MORE DETAILS TOMORROW. THANK YOU, MAYOR. >> MAYOR JONES: THANK YOU, ANDY. APPRECIATE THAT. CONGRATULATIONS TO ALL OF US ON THAT. OKAY. THE TIME IS NOW 5:37 ON WEDNESDAY OCTOBER 1ST. AND THIS MEETING IS AD
* This transcript was compiled from uncorrected Closed Captioning.