[00:00:10]
          >> MAYOR JONES: 2:05 P.M. ON WEDNESDAY -- 
          PLEASE CALL ROLL. >> CLERK: 
          [
BRIEFING ONLY
 ]
          >> MAYOR JONES: GREAT. THANKS, MADAM CLERK. THIS MEETING WE HAVE TWO BRIEFINGS RELATED TO SAWS. THE FIRST IS ON THE PROPOSED RATE ADJUSTMENT AND THE SECOND IS RELATED TO AN IMPACT FEE WAIVER. 
          ERIK, OVER TO YOU. >> WALSH: YEP. THANK YOU, MAYOR. 
          WE'LL KICK OFF -- ROBERT WILL START WITH ROBERT AND CECILIA AND TROY WILL WRAP UP ON THE RATE CONVERSATION IN TERMS OF STAFF RECOMMENDATION. 
          AND THEN THE SECOND ITEM IS A POLICY-LEVEL CONVERSATION FOR THE COUNCIL REGARDING IMPACT FEES AND TROY WILL GIVE THAT PRESENTATION. 
          THERE ARE TWO SLIDES THAT CPS -- OR I'M SORRY, SAWS WILL PROVIDE SOME CONTEXT, BUT THAT IS A POLICY-RELATED ITEM THAT WAS GENERATED FROM CONVERSATIONS WITH A COUPLE OF COUNCILMEMBERS AND -- AND THEY FELT THAT IT WAS MORE APPROPRIATE TO HAVE THAT CONVERSATION HERE AT B SESSION RATHER THAN HAVE IT DURING THE A SESSION ACTION ITEM. SO THAT'S OUR SECOND ITEM. AND IT'S SPECIFICALLY WITH THE NEIGHBORHOOD OF VIAS AT TIMBERWOOD. SO WITH THAT, I'LL TURN IT OVER TO ROBERT. 
          >> GOOD AFTERNOON, MAYOR, COUNCILMEMBERS. PLEASURE TO BE HERE WITH YOU AGAIN. LAST TIME WE WERE HERE IN JUNE, COUNCIL MADE THE DECISION TO MOVE OUR RATE REQUEST FROM THEN TO OCTOBER. 
          AND SINCE THEN, I'VE HAD THE OPPORTUNITY TO MEET INDIVIDUALLY WITH A LOT OF YOU AND LISTEN MORE CLOSELY AND ADDRESS YOUR CONCERNS. 
          THERE WERE CONCERNS ABOUT AFFORDABILITY. I HEARD QUESTIONS ABOUT WHETHER WE COULD REDUCE THE RATE REQUEST. I HEARD CONCERNS ABOUT WATER LOSS AND WHETHER WE WERE DOING ENOUGH TO REPLACE OUR AGING WATER MAINS. I HEARD REQUESTS FOR AN INDEPENDENT REVIEW OF OUR CAPITAL OPERATIONS. THOSE CONVERSATIONS ALL GAVE US AN OPPORTUNITY TO DISCUSS SOME OF THE WORK THAT HAD ALREADY TAKEN PLACE AND WAS UNDER WAY BEFORE OUR JUNE MEETING. AS WE PREPARED OUR 2026 BUDGET, WE HAD ALREADY TAKEN A HARD LOOK AT OUR OPERATING EXPENSES AND IDENTIFIED SIGNIFICANT OPPORTUNITIES FOR SAVINGS. THOSE REDUCTIONS BECAME PART OF OUR FOUNDATION FROM WHICH WE CONTINUE TO EVALUATE THE PLAN THAT WE'RE UNDER FOLLOWING THAT JUNE DISCUSSION. AS PART OF THE 2026 BUDGET, WE REDUCED OPERATION AND MAINTENANCE EXPENSES BY OVER $11 MILLION. WE ELIMINATED 20 VACANT CUSTOMER SERVICE POSITIONS, PRODUCING A $4 MILLION SAVINGS. WE REDUCED THE WATER SUPPLY BUDGET BY 6 MILLION. AND WE ALSO REDUCED UTILITY EXPENSES BY 1.2 MILLION. ADDITIONALLY, WE REDUCED OUR BUDGET REVENUE REQUIREMENT ANOTHER 3 MILLION BY REMOVING SENIOR LEAD DEBT SERVICE REQUIREMENTS -- ASSUMPTIONS. 
          THOSE WERE DECISIONS SAWS MADE BEFORE COUNCIL CONSIDERED THE JUNE RATE REQUEST AND THOSE SAVINGS CARRY FORWARD INTO THE SUBSEQUENT YEARS OF THIS FINANCIAL PLAN. I MENTION THEM BECAUSE I WANT TO MAKE TWO IMPORTANT DISTINCTIONS: FIRST, SAWS WAS ALREADY LOOKING INTERNALLY FOR SAVINGS AND MAKING REDUCTIONS BEFORE COMING TO COUNCIL. 
          SECOND, AFTER THE JUNE MEETING, COUNCIL ASKED US TO GO FURTHER, AND WE DID. WE WENT BACK AND LOOKED AT THE PLAN, AND, AGAIN, CHANGED IT. THERE ARE SEVERAL IMPORTANT DIFFERENCES BETWEEN WHAT COUNCIL SAW IN JUNE AND WHAT YOU SEE HERE TODAY. 
          FIRST, WE LOWERED THE MINIMUM RATE INCREASE IN THE FINAL TWO YEARS OF THE PLAN. THAT REDUCES THE MINIMUM FOUR-YEAR RESIDENTIAL IMPACT -- THROUGH THE PUBLIC UTILITIES OFFICE. A NEW RATE STUDY AND COST OF SERVICE ANALYSIS WILL ALSO BEGIN IN 2027 AND FURTHER CREATES A CHECK ON WHAT OUR CAPITAL NEEDS ARE AND, THEREFORE, FURTHER JUSTIFIES OUR RATE REQUESTS. AND FRANKLY, IT CAN FURTHER JUSTIFY A LOWER LATE REQUEST. SECOND, WE REDUCED THE FIVE-YEAR CAPITAL PROGRAM FROM APPROXIMATELY $3.2 BILLION TO 2.6 BILLION, A REDUCTION OF ALMOST 600 MILLION. WE REFINED OUR PRIORITIES, WE DEFERRED PROJECTS AND MOVED OTHER PROJECTS INTO LATTER YEARS, BUT ONE AREA WHERE WE LISTENED PARTICULARLY CLOSE WAS WATER LOSS. AT ONE POINT, BECAUSE OF THE REDUCED CAPITAL PROGRAM, WE HAD TO LOOK AT REDUCING OUR PLANNED WATER MAIN REPLACEMENT FROM 77 MILES TO 40 MILES. 
          [00:05:06]
YOU TOLD US VERY CLEARLY THAT THAT WAS NOT THE RIGHT DIRECTION. 
          WE HEARD YOU. WE WENT BACK TO THE CAPITAL PROGRAM AND RESTORED THE ENTIRE 77 MILES OF WATER MAIN REPLACEMENT WHILE STAYING WITHIN THE REVISED FINANCIAL PLAN. THIRD, WE SIGNIFICANTLY EXPANDED OUR AFFORDABILITY EFFORTS. OUR UPLIFT CUSTOMERS WILL RECEIVE NO RATE INCREASE UNDER THIS PROPOSAL. WE ARE EXPANDING ELIGIBILITY FROM 150% OF FEDERAL POVERTY LEVEL AND IMPLEMENTING AN AUTO INVOLVEMENT PROGRAM THAT IS DESIGNED TO REACH CUSTOMERS WHO QUALIFY FOR ASSISTANCE BUT ARE NOT CURRENTLY PARTICIPATING. AND FOURTH, COUNCIL ASKED US TO LOOK INTO INDEPENDENT EXAMINATION OF OUR CAPITAL PROGRAM. 
          PHASE 1 OF THE CAPITAL EFFICIENCY AND EFFECTIVENESS STUDY HAS BEEN COMPLETED AND HAS BEEN PRESENTED TO OUR BOARD AND PROVIDED TO COUNCIL. AND BY THE WAY, PHASE 2 HAS ALREADY STARTED. 
          INDEPENDENT REVIEW FOUND THAT COMPARED WITH OTHER UTILITIES, SAWS DEMONSTRATES A STRONG UNDERSTANDING OF CAPITAL PROGRAM PERFORMANCE. 
          BUT IT ALSO IDENTIFIED AREAS WHERE WE CAN IMPROVE, INCLUDING GOVERNANCE, COMMUNICATION, PLANNING AND STAKEHOLDER ENGAGEMENT. WHERE THE STUDY VALIDATES WHAT SAWS IS DOING WELL, WE SHOULD SAY SO. WHERE IT IDENTIFIES OPPORTUNITIES TO IMPROVE, WE SHOULD DO SO. THERE IS ONE OTHER CONSEQUENCES OF THE JUNE POSTPONEMENT THAT IS IMPORTANT TO AK. ACKNOWLEDGE. 
          SAWS DID NOT START COLLECTING THE $27.5 MILLION OF REVENUE BETWEEN JULY AND JANUARY. WE HAVE NOT ATTEMPTED TO RECOVER THAT LOST REVENUE BY SIMPLY ADDING IT BACK INTO OUR CUSTOMERS' BILLS. INSTEAD WE REVISED OUR CAPITAL PROGRAM AND MADE FINANCIAL ADJUSTMENTS THAT CECILIA WILL EXPLAIN LATER  TODAY. 
          THIS IS A TRUE SAVINGS TO YOUR CONSTITUENTS. A STATEMENT YOU CAN MAKE TO YOUR CONSTITUENTS WHEN YOU GET BACK INTO YOUR TOWN HALLS AND YOUR TOWN HALL MEETINGS. BUT WHILE THE PLAN HAS CHANGED, THE FUNDAMENTAL NEEDS OF WATER AND WASTEWATER SYSTEM HAVE NOT. 
          WE STILL HAVE AGING INFRASTRUCTURE, WE STILL HAVE WATER MAINS THAT NEED TO BE REPLACED, MAJOR WASTEWATER TREATMENT INVESTMENTS MUST STILL BE MADE. WE STILL HAVE REGULATORY AND RESILIENCY REQUIREMENTS TO MEET. AND WE STILL HAVE TO MAKE SURE THAT THIS COMMUNITY HAS RELIABLE WATER AND WASTEWATER SERVICES, NOT JUST DURING THIS FOUR-YEAR PLANNING PERIOD, BUT DECADES FROM NOW. 
          TODAY IS AN OPPORTUNITY FOR US TO SHOW THAT WE DO LISTEN, THAT WE DO TAKE YOUR FEEDBACK SERIOUSLY, THAT WE ARE FLEXIBLE AND WE'RE HERE TO CREATE A WIN/WIN SITUATION. I APPRECIATE THE CANDID CONVERSATION THAT BEIF HAD OVER THE LAST COUPLE OF -- WE'VE HAD OVER THE LAST COUPLE OF MONTHS. 
          WE DID NOT AGREE ON EVERY ISSUE, BUT THOSE CONVERSATIONS HAVE RESULTED IN A DIFFERENT PROPOSAL IN THE ONE THAT'S BEFORE YOU TODAY AND I HOPE YOU CAN SUPPORT WITH A FAVORABLE VOTE NEXT WEEK. 
          THANK YOU, MAYOR. CECILIA IS READY TO PRESENT THE REST OF THE 
          PROGRAM. >> HI, GOOD AFTERNOON. ALL RIGHT. 
          AS WE BEGAN DEVELOPING THE 2026 BUDGET IN JUNE OF 2025, WE DETERMINED THAT ADDITIONAL REVENUES WOULD BE NEEDED TO FUND OUR CRITICAL INFRASTRUCTURE PROJECTS, PARTICULARLY THE IMMEDIATE IMPROVEMENTS THAT ARE REQUIRED AT OUR WASTEWATER TREATMENT FACILITIES. 
          OVER THE PAST SIX YEARS, SAWS HAS BEEN ABLE TO TARGET DEBT REDUCTIONS AND OTHER FINANCIAL STRATEGIES TO AVOID RATE ADJUSTMENTS WHILE MAINTAINING STRONG FINANCIAL METRICS. HOWEVER, WE HAVE REACHED A POINT WHERE ADDITIONAL REVENUE IS NECESSARY TO FUND ESSENTIAL INFRASTRUCTURE, PRESERVE OUR FINANCIAL POSITION AND LIMIT OUR FUTURE CREDIT RISK. AT THE SAME TIME, THERE HAD BEEN SIGNIFICANT TURNOVER IN BOTH OUR BOARD AND CITY COUNCIL. WE RECOGNIZE THE IMPORTANCE OF ALLOWING SUFFICIENT TIME TO BRIEF NEW MEMBERS, RESPOND TO QUESTIONS AND PROVIDE THE SUPPORTING INFORMATION NECESSARY TO FULLY EVALUATE OUR PROPOSED -- THE PROPOSED INVESTMENTS AND RATE PLAN. 
          AS A RESULT, THE SAWS BOARD ADOPTED A REDUCED 2026 CAPITAL BUDGET WITH NO RATE INCREASE, AND DIRECTED SAWS STAFF TO MOVE FORWARD WITH THE DEVELOPMENT OF A FOUR-YEAR RATE PLAN. TODAY'S PRESENTATION REFLECTS THE WORK -- THAT WORK AND THE FEEDBACK WE HAVE RECEIVED THROUGHOUT THE PROCESS. OVER THE PAST YEAR, WE HAVE BRIEFED CITY COUNCIL ON OUR BUDGET, INFRASTRUCTURE NEEDS AND PROPOSED RATE PLANS. 
          THROUGHOUT THAT PROCESS, WE HAVE RESPONDED TO QUESTIONS, PROVIDED ADDITIONAL INFORMATION AND INCORPORATED COUNCIL FEEDBACK INTO OUR UPDATED PROPOSAL. THE CONSTITUENT MESSAGE WE'VE HEARD IS THE IMPORTANCE OF AFFORDABILITY FOR ALL CUSTOMERS, PARTICULARLY OUR MOST VULNERABLE CUSTOMERS. IN RESPONSE, WE WERE ABLE TO REDUCE THE MINIMUM FOUR-YEAR IMPACT, MAINTAIN EXISTING RATES FOR OUR CUSTOMERS ENROLLED IN THE UPLIFT PROGRAM, AND -- 
          [00:10:05]
AUDIO] -- TO ALIGN PLAN INVESTMENTS WITH THE REVENUE AVAILABLE UNDER THE REVISED RATE PLAN. ALTHOUGH THE OVERALL CAPITAL PLAN WAS REDUCED, WE WERE ABLE TO RESTORE FUNDING FOR THE FULL 77 MILES OF PLANNED REPLACEMENT FOR THE WORST CONDITIONED MAIN. FINALLY IN COUNCIL'S REQUEST FOR AN INDEPENDENT REVIEW, WE DID HAVE WILLIAMS CONSULTING PARTNERS COMPLETE PHASE 1 OF THE CAPITAL IMPROVEMENT PROGRAM EFFICIENCY AND EFFECTIVENESS STUDY. THE STUDY EVALUATED OUR CURRENT CAPITAL PROGRAM AND IDENTIFIED BOTH AREAS OF STRONG PERFORMANCE AND OPPORTUNITIES FOR CONTINUED IMPROVEMENT. TOGETHER, THESE CHANGES REFLECT OUR EFFORT TO BALANCE CUSTOMER AFFORDABILITY, CRITICAL INFRASTRUCTURE INVESTMENT AND ACCOUNTABILITY FOR OUR PROPOSED RATE PLAN. 
          AT A HIGH LEVEL, THIS SLIDE SUMMARIZES THE REVISIONS TO THE ORIGINAL RATE PLAN, WE SHIFTED IMPLEMENTATION TO JANUARY 1ST, 2027, WHILE MAINTAINING THE SAME ADJUSTMENTS FOR THE FIRST TWO YEARS, AND THE SAME MAXIMUM FOR THE FINAL TWO YEARS. TO FURTHER SUPPORT AFFORDABILITY, WE REDUCED THE MINIMUM ADJUSTMENTS FOR '29 AND 2030 BY 1 PERCENTAGE POINT EACH. THESE CHANGES AT THE END OF THE PLAN, $ $70..13. AS MR. P WHEN DAY STATED AS WELL, A NEW ANALYSIS WILL INFORM THE NEEDS FOR OUR 2029 AND 2030 BUDGET. 
          OVER THE PAST FEW MONTHS WE HAVE COORDINATED CLOSELY WITH TROY AND THE PUBLIC UTILITIES OFFICE TO PROVIDE SUFFICIENT TIME TO REVIEW THE CHANGES TO OUR RATE PLAN. FOR OUR MOTH VULNERABLE CUSTOMERS HAS BEEN ESSENTIAL CONSIDERATION IN DEVELOPING PROPOSED RATE PLAN. UNDER THIS PROPOSAL CUSTOMERS ENROLLED IN OUR UPLIFT AFFORDABILITY PROGRAM WILL NOT RECEIVE A RATE INCREASE DURING THE ENTIRE FOUR-YEAR RATE PLAN. WE ARE ALSO PROPOSING AN ADDITIONAL $550,000 ANNUALLY FOR DIRECT CUSTOMER ASSISTANCE PROGRAMS. -- QUA PROGRAM, 200,000 TO OUR PLUMBERS TO PEOPLE PROGRAM AND $150,000 FOR LATERALS TO PEOPLE PROGRAM. IN ADDITION, WE PLAN TO EXPAND OUR UPLIFT ELIGIBILITY FROM 125% TO 150%  OF THE FEDERAL POVERTY LEVEL. BASED ON THE FEDERAL POVERTY LEVEL 2026 GUIDELINES, THIS WOULD INCREASE THE INCOME THRESHOLD FOR A FAMILY OF FOUR FROM $41,250 TO $49,500 ANNUALLY. THIS CHANGE HAS THE POTENTIAL TO SIGNIFICANTLY EXPAND ACCESS TO OUR PROGRAM. 
          OUR STRATEGIC GOAL IS TO INCREASE ENROLLMENT BY AT LEAST 10% THROUGHOUT 2027 AND UP TO 29% BY THE END OF THE FOUR-YEAR PERIOD IN 2030. 
          TOGETHER, THESE ACTIONS PROTECT OUR EXISTING UPLIFT CUSTOMERS FROM THE PROPOSED RATE INCREASES, THEY PROVIDE ADDITIONAL ASSISTANCE FOR HOUSEHOLD PLUMBING AND SEWER REPAIRS AND MAKE AFFORDABILITY SUPPORT AVAILABLE TO MORE ELIGIBLE CUSTOMERS. TO SUPPORT THE UPLIFT GROWTH STRATEGY, SAWS PARTNERED WITH CITY COUNCIL OFFICES AND LAUNCHED AN AUTO ENROLLMENT PILOT. USING ZIP CODE AND STREET-LEVEL DATA WE IDENTIFIED SELECTED CUSTOMERS IN COUNCIL DISTRICTS 1, 2 AND 5 AND AUTOMATICALLY ENROLLED THEM IN THE UPLIFT AFFORDABILITY PROGRAM FOR THE 180-DAY PILOT PERIOD. 
          DURING THE PILOT, SAWS WILL CONDUCT EXTENSIVE FOLLOW-UP OUTREACH TO HELP PARTICIPATING CUSTOMERS UNDERSTAND THE PROGRAM AND COMPLETE THE STEPS NECESSARY TO REMAIN ENROLLED AFTER THE PILOT PERIOD ENDS. 
          THIS APPROACH -- BRINGING ASSISTANCE DIRECTLY TO THESE CUSTOMERS WHO MAY QUALIFY RATHER THAN RELYING SOLELY ON THE CUST CUSTOMERS TO APPLY ON THEIR OWN. PLANNING FOR PHASE 2 IS ALREADY UNDER WAY AND INCLUDES COUNCIL DISTRICTS 3, 4 AND -- THE AUTO ENROLLMENT APPROACH, TOGETHER WITH THE EXPANDED ELIGIBILITY CRITERIA DISCUSSED EARLIER, THIS PILOT SUPPORTS OUR GOAL OF REACHING MORE ELIGIBLE HOUSEHOLDS AND INCREASING PARTICIPATION IN THE UPLIFT PROGRAM. THIS SLIDE SHOWS OUR UPDATED FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM AND THE CHANGES MADE TO ALIGN OUR PLANNED INVESTMENTS WITH THE FUNDING AVAILABLE UNDER OUR PROPOSED RATE PLAN. 
          THE PROGRAM PRESENTED IN JUNE TOTALED APPROXIMATELY $3.2 BILLION AND INCLUDED A PROPOSED AMENDMENT THAT WOULD HAVE INCREASED THE 2026 BUDGET APPROXIMATELY $608 MILLION. BECAUSE SAWS IS NOT MOVING FORWARD WITH THE 2026 RATE INCREASE, WE MAINTAINED THE ADOPTED 2026 CAPITAL BUDGET OF $258 MILLION. WE THEN REEVALUATED THE REMAINING PROJECTS BASED ON INFRASTRUCTURE RISK, REGULATORY REQUIREMENTS, SYSTEM RELIABILITY AND AVAILABLE FUNDING.  AS A RESULT, THE OVERALL FIVE-YEAR CAPITAL PROGRAM WAS REDUCED BY APPROXIMATELY 
          [00:15:04]
$600 MILLION. WITHIN THE REVISED PROGRAM, WASTEWATER REMAINS THE MOST IMMEDIATE PRIORITY. IN 2027, APPROXIMATELY 450 MILLION OF THE $567 MILLION CAPITAL PROGRAM IS DEDICATED TO OUR WASTEWATER INFRASTRUCTURE NEEDS, PRIMARILY AT OUR TREATMENT FACILITIES. IN 2028, THE PROGRAM INCREASES INVESTMENT IN WATER MAIN REPLACEMENTS WHILE CONTINUING OUR CRITICAL WASTEWATER IMPROVEMENTS. AND IN 2029 AND 2030, THE PROGRAM INCLUDES MAJOR WATER SUPPLY INVESTMENTS, INCLUDING OUR ASR EXPANSION AND OUR EXPANDED LOCAL CARRIZO PROJECTS. ALTHOUGH THE OVERALL PROGRAM WAS REDUCED, THE REVISED CIP CONTINUES TO PRIORITIZE THE PROJECTS NEEDED TO PROTECT PUBLIC HEALTH, MAINTAIN RELIABLE SERVICE, MEET REGULATORY REQUIREMENTS AND STRENGTHEN OUR LONG-TERM WATER SUPPLY PORTFOLIO. 
          THE FIVE-YEAR CAPITAL PROGRAM INCLUDED 77 MILES OF REPLACEMENTS FOR THE WORST CONDITIONED WATER MAINS. DURING OUR REEVALUATION OF THE CIP AND AVAILABLE FUNDING THAT AMOUNT WAS ORIGINALLY REDUCED TO APPROXIMATELY 40 MILES. BASED ON FEEDBACK FROM CITY COUNCIL AS WELL AS MEMBERS FROM OUR CAPITAL PROJECTS COMMITTEE, WE RESTORED THE FULL 77 MILES WITHIN THE EXISTING RATE REQUEST. THAT REQUIRED OTHER PROJECTS TO BE REDUCED OR PHASED OUT, BUT IT PRESERVES A CRITICAL INVESTMENT IN WATER RELIABILITY AND WATER STEWARDSHIP. 
          IN RESPONSE TO CITY COUNCIL FEEDBACK, SAWS ENGAGED WILLIAMS CONSULTING PARTNERS TO CONDUCT AN INDEPENDENT EVALUATION OF THE EFFECTIVENESS AND EFFICIENCY OF OUR CAPITAL IMPROVEMENT PROGRAM. 
          THE WATER AND WASTEWATER INDUSTRY AS A WHOLE IS OPERATING IN INCREASINGLY COMPLEX AND COSTLY ENVIRONMENT. UTILITIES ARE MANAGING AROUND THE ENTIRE UNITED STATES AGING INFRASTRUCTURE, EXPANDING REGULATORY AND RESILIENCE REQUIREMENTS, WORKFORCE CONSTRAINTS AND INCREASING CONSTRUCTION AND OPERATING COST. BECAUSE A COMPREHENSIVE ORGANIZATION-WIDE REVIEW WOULD REQUIRE A LONGER TERM EFFORT, THE SAWS BOARD DETERMINED THAT THE CAPITAL IMPROVEMENT PROGRAM WAS THE APPROPRIATE PLACE TO BEGIN. THE CAPITAL PROGRAM REPRESENTS A SIGNIFICANT ANNUAL INVESTMENT OF OVER HALF A BILLION DOLLARS, INVOLVES NEARLY EVERY AREA OF OUR ORGANIZATION AND DIRECTLY AFFECTS PUBLIC HEALTH, SAFETY, SYSTEM RELIABILITY AND SERVICE DELIVERY. 
          PHASE 1 PROVIDED A COMPREHENSIVE OVERVIEW OF SAWS CAPITAL PROCESSES AND ESTABLISHED A BASELINE FOR EVALUATING THE PROGRAM'S PERFORMANCE AND -- THE SAWS BOARD ACCEPTED THE PHASE 1 REPORT ON SEPTEMBER 1ST. 
          DISTRIBUTED TO CITY COUNCIL THE NEXT DAY. OVERALL, THE PHASE 1 STUDY FOUND THAT COMPARED WITH SIMILAR UTILITIES, SAWS AND STRENGTH STRONG TO OUTSTANDING CAPITAL PROGRAM PERFORMANCE. 
          KEY INDICATORS INCLUDE COMMITTING 75% OF OUR 2025 KIP WITHIN THE FIRST YEAR, MAINTAINING A HISTORICAL CHANGE ORDER RATE OF 1.3% -- AUDIO] -- DEMONSTRATE STRONG FINANCIAL METRICS. 
          WHILE THE OVERALL FINDINGS WERE POSITIVE, THE STUDY ALSO IDENTIFIED OPPORTUNITIES TO STRENGTHEN OUR CAPITAL PROGRAM WITHIN OUR GOVERNANCE, COMMUNICATION, STRATEGIC PLANNING AND STAKEHOLDER ENGAGEMENT. THE CONSULTANT ALSO NOTED THAT AS FUTURE PROJECTS BECOME LARGER MORE COMPLEX, SAWS WILL NEED TO MAINTAIN A STRONG PROJECT DISCIPLINE AND CONTINUAL LINING CAPITAL INVESTMENTS WITH ENTER PRICE RISK AND STRATEGIC PRIORITIES. THIS SLIDE PROVIDES THE BASELINE FOR OUR ORIGINAL FOUR-YEAR RATE PLAN, WHICH WOULD HAVE COVERED 2026 THROUGH 2029. UNDER THE ORIGINAL PROPOSAL, THE FIRST RATE ADJUSTMENT WOLD HAVE TAKEN AFFECT IN JULY 1ST OF 2026, WITH THE RELATED REVENUE BEGINNING IN AUGUST. THE ORIGINAL PLAN WAS INFORMED BY THE RATE STUDY, COMPLETED BY COROLO ENGINEERING AT THE END OF 2025. THAT STUDY CONFIRMED THAT CURRENT RATES AND CHARGES WERE NOT SUFFICIENT TO MEET SAWS REVENUE REQUIREMENTS. 
          THE PROPOSED ADJUSTMENTS WERE FIXED AT 6.9% FOR 2027, AND 6.5% -- I'M SORRY, 6.9% FOR 2026 AND 6.5% FOR 2027. FOR 2028 AND 2029, THE PLAN ESTABLISHED MINIMUM AND MAXIMUM ADJUSTMENT AGREED UPON WITH THE CITY'S PUBLIC UTILITIES OFFICE. AT THE MINIMUM, THE AVERAGE RESIDENTIAL BILL WOULD -- BY THE END OF THE FOUR-YEAR PERIOD, REPRESENTING A CUMULATIVE INCREASE OF 26.1%, AT THE MAXIMUM ADJUSTMENT THE CUMULATIVE IMPACT COULD HAVE REACHED 29.9%. THE ORIGINAL PROPOSAL SERVES AS THE BASELINE FOR THE REVISIONS SHOWN IN THE NEXT SLIDE INCLUDING THE UPDATED IMPLEMENTATION SCHEDULE. SO BASED ON COUNCIL FEEDBACK AND THE UPDATED APPROVAL SCHEDULE, WE MOVED THE FOUR-YEAR RATE PLAN FROM 2026 THROUGH 
          [00:20:02]
2029 TO 2027 THROUGH 2030. WITH THE IMPLEMENTATION BEGINNING JANUARY 1ST OF 2027. THIS AVOIDS IMPLEMENTING ONE ADJUSTMENT NEAR THE END OF 2026 FOLLOWED BY ANOTHER ADJUSTMENT IN JANUARY OF 2027. THE 2027 AND 2028 ADJUSTMENTS REMAIN UNCHANGED, BUT WE WERE ABLE TO REDUCE THE MINIMUM ADJUSTMENTS FOR '29 AND 2030 BY 1 PERCENT POINT EACH. THESE CHANGES REDUCED THE MINIMUM CUMULATIVE FOUR-YEAR IMPACT FROM 26.1% TO 23.7% WHILE PRESERVING FUNDING FOR OUR HIGHEST PRIORITY INFRASTRUCTURE INVESTMENTS. THIS SLIDE SHOWS THE ESTIMATED IMPACT OF THE PROPOSED 2027 THROUGH 2030 RATE PLAN ON THE AVERAGE MONTHLY RESIDENTIAL BILL. THE PROPOSED ADJUSTMENTS ARE FIXED AT THE 6.9% FOR 2027, AND 6.5% FOR 2028. FOR 2029 AND 2030, THE RATE PLAN ESTABLISHES MINIMUM AND MAXIMUM ADJUSTMENTS TO ACCOUNT FOR FUTURE CHANGES IN PROJECT COST, TIMING AND REVENUE REQUIREMENTS FOR SAWS. 
          AS DISCUSSED ON THE PREVIOUS SLIDE, BY REDUCING THE MINIMUM ADJUSTMENTS IN THE FINAL TWO YEARS, WE LOWERED THE MINIMUM CUMULATIVE FOUR-YEAR IMPACT FROM 26.1% TO 23.7%. AT THE MINIMUM ADJUSTMENTS THE BILL WOULD BE $70.13 BY 2030. CUSTOMERS ENROLLED IN OUR UPLIFT ASSISTANCE PROGRAM WILL NOT BE SUBJECT TO ANY OF THESE INCREASES. 
          THE BILL CALCULATIONS ARE BASED ON OUR AVERAGE MONTHLY USAGE OF 6,275-GALLONS PER MONTH; HOWEVER, NEARLY 70% OF OUR RESIDENTIAL CUSTOMERS WITHIN THE CITY LIMITS USE LESS THAN THAT AMOUNT IN 2025. 
          AS SHOWN HERE, THE PERCENTAGE VARIES BY COUNCIL DISTRICT, BUT IN MOST DISTRICTS, MORE THAN 70% OF RESIDENTIAL -- AT OR BELOW THAT AVERAGE. BECAUSE THESE CUSTOMERS USE LESS WATER THAN THE AMOUNT ASSUMED IN OUR AVERAGE BILL CALCULATION, THEIR DOLLARS -- OBJECTIVES OF OUR PROPOSED CAPITAL IMPROVEMENT PROGRAM INFORMED BY THE PRIORITIES AND FEEDBACK BY OUR BOARD AND CITY COUNCIL. FIRST WASTEWATER IS AN IMMEDIATE PRIORITY. 
          THE PROPOSED PROGRAM ADDRESSES AGING INFRASTRUCTURE AT OUR TREATMENT FACILITIES BY ADVANCING THE MOST CRITICAL PROJECTS IDENTIFIED THROUGH THE LATEST WASTEWATER FACILITIES MASTER PLAN. 
          THESE INVESTMENTS ARE NECESSARY TO MAINTAIN RELIABLE TREATMENT OPERATIONS WHILE PROVIDING THE CAPACITY NEEDED TO SERVE FUTURE CUSTOMER GROWTH. SECOND, THE CAPITAL PROGRAM SUPPORTS OUR REGULATORY COMPLIANCE AND SYSTEM RESILIENCY EFFORTS. 
          THE PROPOSED PROJECTS WILL HELP SAWS CONTINUE MEETING APPLICABLE WATER, SEWER AND STORMWATER REGULATIONS AND PUMP REQUIREMENTS. 
          IT ALSO INCLUDES GENERATOR IMPROVEMENTS TO COMPLY WITH SENATE BILL 3 AND STRENGTHEN THE SYSTEM'S ABILITY TO OPERATE DURING EXTENDED POWER OUTAGES. FINALLY THE PROGRAM ADVANCES WATER STEWARDSHIP AND LONG-TERM WATER SECURITY. IT MAINTAINS THE FULL 77 MILES OF PLANNED REPLACEMENTS FOR THE WORST CONDITIONED WATER MAINS AND CONTINUES OUR INTERNAL LEAK DETECTION EFFORTS. 
          IN 2029 AND 2030, THE PROGRAM ALSO INCLUDES OUR AQUIFER STORAGE AND RECOVERY EXPANSION AND EXPANDED LOCAL CARRIZO PROJECT TO HELP MEET OUR PROJECTED WATER SUPPLY NEEDS DURING FUTURE DROUGHT CONDITIONS. 
          TOGETHER, THESE INVESTMENTS ARE INTENDED TO REDUCE INFRASTRUCTURE RISK, PROTECT PUBLIC HEALTH AND SAFETY, STRENGTHEN SYSTEM RESILIENCY AND HELP AVOID SIGNIFICANT SERVICE DISRUPTIONS. 
          THIS SLIDE SUMMARIZES THE REMAINING STEPS IN THE REVIEW AND APPROVAL PROCESS FOR OUR PROPOSED 2027 THROUGH 2030 RATE PLAN, FOLLOWING THE FIRST PUBLIC HEARING AT THE SEPTEMBER 1ST SAWS BOARD MEETING AND TODAY'S CITY COUNCIL BRIEFING, WE WILL RECOMMEND BOARD APPROVAL AT THE SECOND PUBLIC HEARING AT THE BOARD ON OCTOBER 6TH. IF APPROVED THE PROPOSED RATE PLAN WILL ADVANCE AND COME BACK TO CITY COUNCIL FOR CONSIDERATION ON OCTOBER 8TH. THROUGHOUT THIS PROCESS, MR. PUENTE AND MEMBERS OF THE EXECUTIVE TEAM HAS CONDUCTED INDIVIDUAL COUNCIL BRIEFINGS, RESPONDED TO QUESTIONS AND INCORPORATED FEEDBACK INTO OUR PROPOSED RATE PLAN AND OUR CAPITAL PROGRAM. IN CLOSING, EVEN WITH THE PROPOSED 2027 RATE ADJUSTMENTS SHOWN IN ORANGE, SAWS AVERAGE COMBINED RESIDENTIAL WATER AND SEWER BILL WILL REMAIN AMONG THE LOWEST COMPARED WITH OTHER MAJOR TEXAS CITIES. THE PROPOSED 2027 AVERAGE BILL IS $65.05 PER MONTH, SUPPORTS CRITICAL WASTEWATER TREATMENT IMPROVEMENTS, REPLACING AGING WATER MAINS, GREATER SYSTEM RESILIENCY AND INVESTMENTS IN OUR LONG-TERM WATER SUPPLY. AT THE SAME TIME, WE HAVE TAKEN MEANINGFUL STEPS TO PROTECT CUSTOMER AFFORDABILITY. 
          MOST RESIDENTIAL CUSTOMERS USE LESS THAN THAT AVERAGE CONSUMPTION 
          [00:25:01]
REFLECTED IN THIS COMPARISON, AND ARE EXPECTED TO EXPERIENCE A LOWER MONTHLY DOLLAR IMPACT. IN ADDITION, CUSTOMERS ENROLLED IN OUR UPT LIFT AFFORD BILITIES PROGRAM WILL SEE NO RATE INCREASE, SO THAT FURTHEST ON THE RIGHT WITH THE AVERAGE UPLIFT BILL OF $25 -- FOWFER FOUR YEARS. WE BELIEVE THE PROPOSED PLAN STRIKES A BALANCE MAINTAINING AFFORDABLE SERVICE TODAY AND MAKING THE ESSENTIAL SERVICE NEEDED TO PROVIDE WATER AND WASTEWATER SERVICE FOR THE FUTURE. 
          I'LL HAND IT OVER TO TROY. >> ELLIOTT: THANK YOU, CECILIA. GOOD AFTERNOON, MAYOR AND COUNCIL. 
          TROY ELLIOTT, CHIEF FINANCIAL OFFICER. AS CECILIA MENTIONED OVER THE LAST SEVERAL MONTHS WE AND MY STAFF HAVE BEEN WORKING WITH HER TEAM TO REALLY REFLESH OUR RATE REVIEW. I WON'T GO THROUGH ALL THE DETAILS THAT SHE PRESENTED IN HER SLIDES. I THINK IT'S SAFE TO SAY THAT MY TEAM AND I, WE WENT THROUGH ALL THOSE DETAILS AND REALLY ARE HERE TODAY TO PROVIDE YOU A RECOMMENDATION. 
          HE'S DOING THAT, I'LL GO AHEAD AND START TALKING, BUT IN TERPS OF CITY STAFF REVIEW, AS I MENTIONED, WE WENT THROUGH ALL ASPECTS OF THE RATE. WE REFRESHED OUR RATE REVIEW. 
          WE LOOKED THROUGH THE CAPITAL IMPROVEMENTS PLAN, HOW THAT TRANSLATES INTO THE DEBT SERVICE AND INTO RATE AS WELL AS OUR COVERAGES AND THEIR PERFORMANCE METRICS OR FINANCIAL MET THRIKS. WE LOOKED THROUGH THE REVISED OR THE PROPOSED FISCAL YEAR 2027 BUDGET. AND HOW THAT DIFFERS FROM 2026 AND THE ORIGINAL RECOMMENDATION AND THE VARIANCES BETWEEN THOSE. 
          WE LOOKED AT THEIR FINANCIAL MODEL AND KEY ASSUMPTIONS, AS WELL AS THEIR FINANCIAL METRICS, THE IMPACTS TO THE BILLS THAT WERE JUST PRESENTED BY CECILIA AND ALSO REFRESHED AND LOOKED AT OUR ACCOUNTABILITY MEASURES THAT WILL APPLY TO THE FUTURE RATES AS WE GO THROUGH THOSE. 
          IN TERMS OF THE RATE PLAN COMPARISONS, ROBERT MENTIONED THIS EARLIER IN HIS PRESENTATION, WE'RE WORKING WITH SAWS STAFF VERY EARLY ON THROUGH THEIR ORIGINAL RATE PROPOSAL, AS WE WERE GOING THROUGH THAT, THERE WERE A NUMBER OF THINGS THAT WE IDENTIFIED AND WE AGREED THAT COULD POSSIBLY BE -- O & M BUDGET. JUST AS A REFRESHER, THOSE REDUCTIONS RESULTED IN LOWER RATES AND REDUCED BILL IMPACT. THEY INCLUDED THE ELIMINATION OF 48 POSITIONS, THOSE RELATED TO THE TERMINATION OF THEIR AMI PROGRAM. WE LOOKED AT THEIR UTILITY EXPENSE BUDGET, THE ORIGINAL UTILITY EXPENSE BUDGET INCLUDED AN ESCALATION OR AN INCREASE FOR PROPOSED CPS BUDGET. WE AGREED TO REMOVE THAT ASSUMPTION AS WELL. WE ALSO LOOKED AT THE WATER SUPPLY OR THE WICO CONTRACT, THERE HAD BEEN A NUMBER OF YEARS BASED ON THE DROUGHT CONDITIONS THAT THEY HAD NOT BEEN TAKING A FULL ADVANTAGE OF THAT, THERE WAS NOT ENOUGH WATER BEING PRODUCED TO BE ABLE TO TAKE THAT AND PAY FOR IT. ALSO AS ROBERT MENTIONED WE LOOKED AT THEIR SENIOR LEAN DEBT RESERVE ASSUMPTION, ALL THESE COLLECTIVELY HAD AN IMPACT OF $14.1 MILLION REDUCTION. THOSE AS WE LOOKED AT THAT, THOSE ROLL INTO AND IMPACT THE FUTURE OF THEIR FUTURE RATES IN THE PROPOSED 2027 BUDGET THAT THEY'LL BE PRESENTING BACK TO THEIR BOARD. 
          IN TERMS OF THE RATE, THIS IS JUST ANOTHER WAY OF LOOKING AT IT IN TERMS OF THE  UPDATED RATE PLAN FOR THE JANUARY 2027 IMPLEMENTATION. 
          JUST TO SHOW YOU THE IMPACT OF THAT $14.1 MILLION AND HOW IT HAD AN IMPACT TO THE ORIGINAL RATE, THE 2026 RATE PLAN IN 26 CONSISTED OF A 7.9% INCREASE MOVING TO 7.6 IN 2027, 7.1 IN 2028. 
          BASED ON THOSE AGREED UPON REDUCTION WITH SAWS, IT HAS AN IMPACT FROM 1% TO 1.7% THROUGH 2029. SO ULTIMATELY THE RATE PLAN THAT WAS PRESENTED TO YOU AS PART OF THAT 2026 WAS THE 6.9. THE 6.5, THE MINIMUMS OF 5.5 AT THAT TIME AND 5% IN 2029. AS THEY PRESENTED TODAY, BASICALLY THAT RATE PLAN GETS SHIFTED OFF TO THE RIGHT, BEGINNING IN 2027, SO THE 2026 RATE MOVES TO 2027, 2027 RATE, 6.5% MOVES TO 2028. 
          AND THEN YOU HAD THE REDUCTION AND THE MINIMUMS OR THE GUARANTEED RATES GOING FROM 5.5 TO 4.5% ENTWINE, AND 5% IN 2030 TO 4%. 
          SO BASED ON AFTER DOING A REFRESHER AND A COMPREHENSIVE REVIEW OF THE PROPOSED RATE, LOOKING AT THEIR O & M, LOOKING AT THEIR PROPOSED 
          [00:30:06]
CIP AND THE MUTUALLY AGREED UPON REDUCTIONS THAT RESULTED IN THE OVERALL RATE SAVINGS AS PROPOSED WE LOOKED AT THAT PROPOSED FOUR-YEAR RATE PLAN. WE AGREE WITH THE RATE PLAN AS PROPOSED. 
          AS WE'VE MENTIONED LAST TIME UNDER THE STAFF RECOMMENDATION, ESPECIALLY FOR EVERY YEAR AND ESPECIALLY IN THE LATTER YEAR, ANYTHING MORE THAN THOSE GUARANTEED MINIMUM RATES BETWEEN THE MINIMUM RATES AS PROPOSED AND THE MAXIMUMS WOULD NEED TO COME BACK TO CITY STAFF FOR REVIEW. THAT WOULD BE -- WE'RE RECOMMENDING THAT THAT WOULD BE AN ADMIN STWRAITTIVE APPROVAL AND WE WOULD COME BACK AND REPORT BACK TO COUNCIL BASED ON -- BASED ON THE RESULTS OF THAT STAFF REVIEW BASED FOR THOSE LAST TWO YEARS OF '29 AND '30. 
          AS ROBERT MENTIONED ON THAT '29 AND 2030, THAT REDUCE THAT RATE, THAT BASICALLY IS DUE TO KIND OF SOME OF THE CHANGES THAT MAY HAPPEN -- IN AUDIO] -- FUTURE YEARS, SO AS IT BECOMES MORE REFINED ENTWINE AND '30, ADDITIONAL SUPPORT MAY BE NEEDED ABOVE THOSE GUARANTEED MINIMUMS. WE WILL LOOK AT THOSE, WE WILL VALIDATE THOSE, AND THEN WE ALSO HAVE SOME ADDITIONAL ACCOUNTABILITY MEASURES IN PLACE THAT WE WILL BE USING TO HELP US GUIDE US THROUGH THAT RATE REVIEW. JUST AS A REMINDER, THOSE ADDITIONAL ACCOUNTABILITY MEASURES OR THOSE ACCOUNTABILITY MEASURES WILL BE THEIR ACCURACY AND THEIR ESTIMATES OF THEIR REVENUE PROJECTIONS. HOW THEIR CIP PLAN IS P PROGRESSING AND HOW THAT ALIGNS TO WHAT THEY WERE INITIALLY PROJECTING AND ESTIMATING, AS WELL AS FOLLOWING UP ON ANY PROPOSED RECOMMENDATIONS THAT WE HAD AS CITY STAFF OR CITY COUNCIL. AND OVERALL, ANY INFORMATION THAT WE WOULD REQUEST ABOVE AND BEYOND THOSE. AT THE END OF THE DAY, WE DID A COMPREHENSIVE REVIEW, WORKED WITH THEIR STAFF, LOOKED THROUGH ALL THOSE DIFFERENT ITEMS AND ARE RECOMMENDING MOVING FORWARD -- 
          AUDIO] -- MAY HAVE. >> MAYOR JONES: GREAT. THANK YOU. 
          GO AHEAD, ERIK. >> WALS >> ELLIOTT: I THOUGHT MAYBE I'D GET A LITTLE BIT OF A REST. IN TERMS OF AS ERIK MENTIONED WE DID HAVE A POLICY ITEM FOR YOUR CONSIDERATION RESULTING IN TIMBERWOOD PARK. IF YOU CAN BRING UP THAT PRESENTATION. 
          SO THE VILLAS AT TIMBERWOOD, THEY'RE A HOMEOWNER ASSOCIATION, THEY'RE COMPRISE OF ABOUT 75 HOMES, THEY'RE NOW SERVED BY WHAT I'LL CALL A COMMUNAL SEPTIC SYSTEM, THEY'RE LOCATED OVER THE EDWARDS AQUIFER CONTRIBUTING ZONE. THE VILLAS AT TIMBERWOOD, JUST TO KIND OF PUT IN PERSPECTIVE, THEY'RE BETWEEN BLANCO ROAD -- BLANCO ROAD IS TO THE WEST, 281 IS TO THE EAST, THEY'RE RIGHT BETWEEN THOSE TWO ROADS NORTH OF 1604 OVER THE EDWARDS AQUIFER CONTRIBUTING ZONE. 
          WHEN WE'RE TALKING ABOUT A WAIVER OF IMPACT FEES, BASICALLY CURRENTLY TODAY THEIR CURRENT ON SITE SEWAGE FACILITY IS FAILING OR HAS BEEN FAILING OVER TIME. THERE'S BEEN ONGOING NONCOMPLIANCE REPORTED BY TCEQ. WE WENT BACK TO THE TCEQ AND VERIFIED THAT NONCOMPLIANCE OVER A NUMBER OF YEARS. THERE'S BEEN A FAILURE TO MAINTAIN COMPLIANCE WITH PERMITTED FLUENT LEVELS, FAILURE TO PREVENT PONDING OR SURFACING OF EFFLUENT IN THE DISPOSAL FIELDS AND THERE'S BEEN A NUMBER OF THESE VIOLATIONS.  AS A RESULT OF THESE VIOLATIONS THERE WAS ALSO A LAWSUIT BETWEEN THE HOMEOWNERS ASSOCIATION, THE ORIGINAL DEVELOPER AND THE HOMEOWNER BUILDER. AS A RESULT OF THAT, GOING THROUGH MEDIATION, THERE WAS A SETTLEMENT THAT WAS AGREED UPON. 
          THAT SETTLEMENT, WE DON'T REALLY HAVE ANY VISIBILITY INTO THAT SETTLEMENT BECAUSE IT WAS CONFIDENTIAL, SO WE HAVE NOT BEEN ABLE TO VALIDATE THE AMOUNT OF THAT SETTLEMENT. BASED ON CONVERSATIONS WITH THEIR REPRESENTATIVE, THOUGH, THERE HAS BEEN -- I GUESS WHAT I WOULD CALL A SIGNIFICANCE INCREASE IN ANNUAL MAINTENANCE JUST TO MAINTAIN THIS, ABOUT $100,000 PER YEAR. ACTUALLY TO MAINTAIN THE ONGOING ON SITE SEWAGE FACILITY. SO AS I MENTIONED, YOU CAN SEE TO THE MAP TO THE RIGHT, AND I'LL GO THROUGH THIS, THAT THE VILLAS ARE A 75 UNIT UP TO THE UPPER LEFT, HIGHLIGHTED IN BLUE, WHAT'S BEING PROPOSED BY BEXAR COUNTY IS A NEW WASTEWATER MAIN TO CONNECT TIMBERWOOD SAWS TO THE SAWS SEWER INFRASTRUCTURE. 
          AND THAT'S HIGHLIGHTED BY RED, I THINK THAT'S GOING DOWN OR ALONG THE SIDE OF MUSTANG CREEK TO CORRECT TOW THE SEWER MAINS  THAT ARE DOWN TO THE SOUTH. 
          [00:35:04]
ONE OF THE CHALLENGES WITH TIMBERWOOD PARK IS WHEN SAWS TOOK IT OVER FROM BEXAR COUNTY, THEY MAINTAINED THE WATER SUPPLY. 
          BUT THE LOTS IN TIMBERWOOD FOR THE MOST PART ARE LARGE LOTS AND THEY'RE ABLE TO ACCOMMODATE INDIVIDUAL SEPTIC SYSTEMS FOR EACH OF THOSE HOMES. THE GARDENS -- OR THE VILLAS AT TIMBERWOOD, THEY HAVE -- THEY'RE MORE OF A GARDEN HOME ON SMALLER LOT LINES, SO EVEN IF A RESIDENT WANTED, THEY COULD NOT -- THEY COULD NOT TAKE ON AND BUILD AN ON SITE SEPTIC ON THEIR PROPERTY BECAUSE THE PROPERTIES ARE SO SMALL. SO THAT'S WHY THEY HAD TO PUT IN PLACE THIS COMMUNAL OR THIS SEPTIC SYSTEM TO MANAGE THOSE 75 UNITS. 
          SO DUE TO THE FAILURE, BEXAR COUNTY HAS PROPOSED THAT NEW WASTEWATER MAIN TO CONNECT TIMBERWOOD TO THE SAWS SEWAGE STRUCTURE. 
          IT'S ABOUT A LITTLE OVER A MILE OF AN EIGHT-INCH MAIN TO CONNECT THE 75 HOMES IN THE VILLAS DOWN SOUTH TO THE MAINS THAT -- AUDIO] -- WHAT'S BEING ASKED TODAY FROM A POLICY STANDPOINT IS THE CONSIDERATION OF REQUEST TO WAIVE WASTEWATER TREATMENT -- AUDIO] -- THE CITY DOES HAVE A FEE WAIVER PROGRAM, FIRST OF ALL, WHAT ARE FEE WAIVERS -- OR WHAT IS THE IMPACT FEES? THEY'RE ONE-TIME CHARGES ON NEW DEVELOPMENT AND NEW CONNECTIONS THAT FUND INFRASTRUCTURE AND CAPACITY ENSURING NEW GROWTH PAYS FOR CAPITAL GROWTH. GROWTH PAYS FOR GROWTH ESSENTIALLY. 
          AFFORDABLE HOUSING, HISTORIC PRESERVATION, SAWS WAIVES FEES, AS WELL AS EXPANSION OF SMALL BUSINESS AND TARGETED INDUSTRY PROJECTS. 
          SAWS DOES PROVIDE THE CITY $3 MILLION PER YEAR FOR IMPACT FEE WAIVERS, VERONICA AND HER TEAM MANAGE THAT HOUSING. INELIGIBLE LOCATIONS AND PROJECTS PER THE POLICY INCLUDE RESTRICTED ENVIRONMENTAL AREAS, FLOODPLAINS, PUBLICLY OWNED FACILITIES AND PROJECTS OUTSIDE THE CITY LIMITS INCLUDING ETJ. ALSO CERTAIN COMMERCIAL USES, INCLUDING HOTELS, BARS, LIQUOR STORES, GAS STATIONS, TATTOO PARLORS AND SEXUALLY ORIENTED BUSINESSES ARE ALSO PROHIBITED. CITY COUNCIL DOES HAVE THE ABILITY AND CAN ISSUE WAIVERS OUTSIDE OF THIS PROGRAM FOR PROJECTS THAT MAY NOT OTHERWISE BE ELIGIBLE UNDER THE CURRENT GUIDELINES. 
          AND ERIK MENTIONED THAT SAWS WILL WRAP UP THEIR PRESENTATION, THEY'LL BE TALKING ABOUT OTHER POLICY CONSIDERATIONS AS A BODY FOR QULAWL TO REQUEST AS WELL AS RATE IMPLICATIONS SHOULD THE WAIVERS BE ASSESSED. 
          IN TERMS OF THE ESTIMATED PROJECT COST, ESTIMATED PROJECT COST IS ABOUT $2.8 MILLION. BEXAR COUNTY PROPOSED AND APPROVED DIRECTING $2 MILLION IN FEDERAL PANDEMIC RELIEF FUNDS TOWARDS THE WASTEWATER INFRASTRUCTURE PROJECT. THIS REQUEST NOW IS ALSO FOR THE WAIVER OF THE FEES IN THE AMOUNT OF $415,575, FOR THOSE IMPACT FEES THAT WOULD OTHERWISE BE REQUIRED FROM THE VILLAS AT TIMBERWOOD. 
          ABOVE AND BEYOND -- ANYTHING ABOVE AND BEYOND THE $2 MILLION AND THE 415,000, ALL THAT WOULD BE COVERED BY THE VILLAS AT TIMBERWOOD HOA, THEY WOULD COVER ANY EXCESS COST BEYOND THE CONTRIBUTION FROM THE CITY AND THE COUNTY. THE SAWS WAIVER WOULD NOT COME FROM THE COSA IMPACT FEE WAIVER PROGRAM, THE FEES I MENTIONED ON THE PRIOR SLIDE. 
          WASTEWATER IMPACT FEES VARY BY THE PROPERTY'S SERVICE AREA AND ARE CALCULATED ON A FEE PER EQUIVALENT DWELLING UNIT. 
          SPECIFIC TO THE VILLAS AT TIMBERWOOD, THE 53 IS $5,541 PER EDU, $1,105 FOR WASTEWATER TREATMENT, AND $4,436 FOR THE WASTEWATER COLLECTION, RESULTING IN A TOTAL $415,575. NOW, I'LL TURN IT OVER TO TRACY LEEMAN FROM SAWS TO TALK ABOUT THE LAST FEW SLIDES. 
          >> GOOD AFTERNOON, THANK YOU FOR HAVING US. I'M TRAY SEE LEE MAMAN FROM THE SAN ANTONIO WATER SYSTEM. AS MR. ELLIOTT JUST MENTIONED IMPACT FEES ARE A ONE-TIME PAYMENT TO SAWS AND IT IS TO ENSURE THAT WE HAVE THE ADEQUATE INFRASTRUCTURE AND PLAN FOR THAT INFRASTRUCTURE, BE ABLE TO BUILD THAT AND PROVIDE THAT THAT HAS ADDITIONAL CAPACITY FOR NEW DEVELOPMENT, WHICH IS ANY NEW CONNECTION TO OUR WATER, WASTEWATER SYSTEM. AGAIN, THOSE IMPACT FEES ARE PAID BY THE NEW DEVELOPMENT. THOSE FOLKS, AND THE INTENT IS TO ENSURE THAT THE RATEPAYERS DO NOT PICK UP THAT COST. AS A RESULT OF THAT IMPACT FEES ARE A LARGE PART OF OUR OVERALL -- 
          [00:40:09]
IS PLANNING A RATE REVIEW SPECIFICALLY TO THE IMPACT FEES BEGINNING IN 2027. WE WILL BEGIN THAT PROCESS WITH AN UPDATING OUR WATER AND WASTEWATER MASTER PLAN IN 2027. WITH THAT, WE'LL BE LOOKING AT GROWTH PROJECTIONS AS WELL AS THE NEW INFRASTRUCTURE AS NEEDED TO SERVE THAT NEW GROWTH. SO ONCE WE HAVE THAT INFORMATION, WE DEVELOP OUR COSTS, WE WILL MOVE INTO 2028, WE'LL START WORKING WITH OUR CAPITAL IMPROVEMENTS ADVISORY COMMITTEE, AND I SAY OUR CAPITAL IMPROVEMENTS ADVISORY COMMITTEE, BUT IT'S ALSO A CITY COUNCIL COMMITTEE AS APPOINTED. IT HAS 11 MEMBERS ALL APPOINTED BY EACH MEMBER OF THE COUNCIL FOR THAT. AND THAT COMMITTEE IS ACTUALLY A REQUIREMENT OF CHAPTER 395 OF THE TEXAS LOCAL GOVERNMENT CODE. IT IS AN OVERSIGHT COMMITTEE THAT IS -- AND THAT CHAPTER 395 ESTABLISHES THE RULES FOR ADMINISTERING, ASSESSING, COLLECTING AND THE USAGE OF THE IMPACT FEES THAT ARE COLLECTED. SO ONCE WE HAVE REPORTED OUR -- PRESENTED THAT INFORMATION TO THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE, THE INTENT IS THAT THEY WOULD PROVIDE A REPORT TO CITY COUNCIL AND, OF COURSE, THAT REPORT WILL HAVE TO BE -- ENSURE THAT IT'S NONDISCRIMINATORY AND EQUITABLE TO ALL PEOPLE WITHIN OUR SERVICE AREA. THAT RECOMMENDATION, AGAIN, WILL BE MADE TO CITY COUNCIL. THE INTENT IS TO COME BACK BEFORE CITY COUNCIL BEFORE JULY OF 2029. WE ARE REQUIRED BY CHAPTER 395 OF THE TEXAS LOCAL GOVERNMENT CODE TO UPDATE OUR IMPACT FEES EVERY FIVE YEARS AT A MINIMUM. SO BASED ON SOME OF THE FEEDBACK WE'VE RECEIVED AND AS WE'RE IN CONSIDERATION OF POLICY AS WE GO THROUGH THE PROCESS WITH THE CIAC, WE CAN CERTAINLY TAKE A LOOK AND REVIEW -- LIMITED PURPOSES BEYOND THE CITY'S ADOPTED IMPACT FEE PROGRAM. 
          SO SOME OF THE POTENTIAL CONSIDERATIONS WE'RE LOOKING AT ARE INDIVIDUAL FAMILY -- SINGLE FAMILY HOMES THAT ARE CONNECTING TO THE SAWS SYSTEM THAT ARE OUTSIDE AN ESTABLISHED SUBDIVISIONS AND CONNECTIONS FOR SMALL BUSINESSES IN ORDER TO GIVE THEM THE ABILITY TO STIMULATE THE ECONOMY WITH THEIR GROWTH. AND, OF COURSE, PROTECTION SHOULD BE PROBABLY CONSIDERED AS PART OF THAT PROTECTIONS OF THE AQUIFER AS WELL AS HEALTH AND SAFETY CONCERNS THAT MAY ARISE. IF THAT REVIEW DOES ESTABLISH CRITERIA THAT WE SHOULD LOOK FORWARD TO GOING TOWARDS A POLICY, THEN THERE ARE ADDITIONAL FACTORS TO BE CONSIDERED. 
          IT IS TRULY A BALANCING ACT, IF WE REDUCE THE NUMBER OF IMPACT FEES COLLECTED, THEN THE MONEY HAS TO BE MADE UP SOMEWHERE. 
          WE'RE LOOKING TO MEET OUR BUDGET AND OUR REQUIREMENTS. 
          AND THAT WOULD MOST LIKELY FALL UPON OUR INDIVIDUAL RATEPAYERS TO MAKE UP FOR THAT. SO BECAUSE OF THIS, ONE OF THE THINGS WE SHOULD PROBABLY CONSIDER WITH THAT POLICY IS A CAP TO THAT SO WE CAN PLAN FOR THAT AS WE DO OUR BUDGETING FOR THE RATES. AND SO JUST AS MR. ELLIOTT MENTIONED, THE CITY DOES ADMINISTER THE EXISTING IMPACT FEE WAIVER PROGRAM. AS CITY COUNCIL HAS THE ABILITY TO WAIVE IMPACT FEES, AND SINCE CITY COUNCIL HAS -- AND IS THE AUTHORITY THAT APPROVES THE SAWS IMPACT FEES, THAT IS WHY THEY ARE THE ONLY ONES THAT CAN APPROVE WAIVERS FOR IMPACT FEES. NOW, THEN PART OF THIS POLICY, WE COULD LOOK AT CITY ALREADY HAS A PROGRAM FOR WAIVERS SPECIFIED AND SET UP BASED ON THE CRITERIA MR. ELLIOTT MENTIONED, BUT FOR THESE LIMITED -- SAWS SOME AUTHORITY FOR A PORTION OF THOSE WAIVERS SO THAT WE CAN APPLY THOSE WITHOUT HAVING TO GO THROUGH THE FULL PROCESS WITH THE CITY COUNCIL -- OR WITH THE CITY'S WAIVER PROGRAM. SO WITH THAT, I'LL TURN 
          IT BACK OVER TO TROY. >> 
          >> MAYOR JONES: THEY'RE SCHEDULED TO COME IN, THEN WHAT ARE THE OPTIONS AT THAT POINT? 
          >> WALSH: WELL, AS TRACY KIND OF LAID OUT, THE IMPACT FEES THAT ARE 
          [00:45:02]
CURRENTLY ON THE BOOKS SUPPORT THE CURRENT RATE STRUCTURE THAT YOU ALL ARE CONSIDERING AND THAT EXISTS NOW. IT'S A LITTLE OVER $400,000. I THINK ROBERT HAS SPOKEN TO THE GROUP ABOUT A PAYMENT PLAN OVER FIVE YEARS. I DON'T THINK THAT'S 
          REALLY GOTTEN A LOT OF TRACTION,. >> MAYOR JONES: RIGHT. 
          >> WALSH: BUT THAT'S POTENTIALLY AN OPTION THAT COULD BE FURTHER 
          EXPLORED BY SAWS. >> MAYOR JONES: TO YOUR POINT I'M TRYING TO GET AT, IF THEY DON'T LIKE THAT OPTION OF A PAYMENT PLAN, IF THEY -- YOU KNOW, DON'T WANT TO UTILIZE ANY OF THE RESOURCES FROM THEIR SETTLEMENT, IF THIS IS JUST UNRESOLVED AS WE APPROACH 2032, WHAT IS -- YOU KNOW, ONCE IT'S TIME TO ABSORB THEM, WHAT ARE THE OPTIONS AT THAT 
          POINT? >> WALSH: WELL, I MEAN, THE IMPACT FEE REQUIREMENT ISN'T NECESSARILY GOING TO GO AWAY BECAUSE THEY COME UNDER THE CITY, IT JUST CHANGES WHO WE'RE DEALING WITH, YOU ALL WOULD BE 
          DEALING WITH RESIDENTS OF THE CITY OF SAN ANTONIO. >> MAYOR JONES: RIGHT. 
          >> WALSH: THERE ARE PROBABLY A HANDFUL OF OTHER SIMILAR-SITUATED NEIGHBORHOODS AROUND THE OUTSKIRTS OF TOWN, OF THE CITY THAT THE ALTERNATIVES -- THAT THE ALTERNATIVES WOULD BE EITHER THE COUNCIL WAIVES IT AND YOU CAN ADJUST THE POLICY THAT WE CURRENTLY EXIST OR YOU HAVE SAWS DO THE POLICY REVIEW AND FIGURE OUT IF THAT'S SOMETHING FROM A STANDPOINT THAT YOU WANT TO DELEGATE TO THE SAWS BOARD AND THE SAWS STAFF TO REVIEW UNDER CERTAIN CONDITIONS TO BE ABLE TO ADDRESS. 
          >> MAYOR JONES: JUST TAKING THIS PARTICULAR EXAMPLE, THOUGH, TO THE EXTENT IT HELPS US INFORM WHAT AN APPROACH FOR A POLICY MIGHT BE, IF THEY DON'T LIKE ANY OF THESE OPTIONS, WE GET NOWHERE BETWEEN NOW AND 2032, IN 2032 WHEN THEY ARE NOW CITY OF SAN ANTONIO RESIDENTS, THEN YOU JUST ADD IT ON TO THEIR BILL, IS THAT CORRECT, IN ORDER TO PROVIDE THE 
          INFRASTRUCTURE THAT THEY NEED? >> WE CAN DO THAT NOW, MAYOR. THAT'S SOMETHING WE'VE OFFERED TO THEM. 
          IF YOU TAKE THE MATH, IT'S ABOUT $415,000 IN IMPACT FEES, 75 HOMES, IT'S ABOUT -- LESS THAN $6,000 PER HOME. WE HAVE A FIVE-YEAR PROGRAM THAT WE USE THROUGHOUT -- IT'S A POLICY OF SAWS, SO IT'S 
          ROUGHLY $100 A MONTH. >> MAYOR JONES: INTEREST-FREE. >> THERE'S A LITTLE BIT OF INTEREST, I THINK, BUT IT'S NOTHING THAT WOULD RAISE IT MORE OR LESS 
          $100. >> MAYOR JONES: SO WE COULD DO THAT NOW. 
          >> YES. >> MAYOR JONES: AND WHEN THEY ARE -- IF WE DON'T DECIDE TO DO THAT, IF THEY ARE -- WHEN THEY ARE CITY OF SAN ANTONIO RESIDENTS IN 2032, THEN WE WOULD JUST DO THAT, WE WOULD HAVE THE OPTION TO 
          JUST DO THAT THEN AS WELL? >> YOU CAN DO IT THEN OR NOW. THEY CAN DO IT THEN OR NOW. 
          THEY CAN AGREE TO IT NOW IF THEY'D LIKE, OR WAIT UNTIL 2032. 
          >> MAYOR JONES: OKAY. I'M GOING TO ASK THE OBVIOUS -- 
          >> SEGOVIA: MAYOR, IF I CAN CLARIFY. YOU CAN'T FORCE THAT. 
          EVEN WHEN THEY COME BACK INTO THE CITY, WE CAN'T FORCE THAT -- 
          AUDIO] -- THEY HAVE TO ELECT TO DO THAT. >> CORRECT. 
          >> MAYOR JONES: OKAY. AND THERE'S A PROGRAM WE HAVE AVAILABLE THAT WE'VE 
          USED IN OTHER CIRCUMSTANCES. >> MAYOR JONES: OKAY. 
          >> THIS PARTICULAR CIRCUMSTANCE, IT'S ABOUT -- I THINK IT'S $92 
          A MONTH. >> MAYOR JONES: THANK YOU. 
          >> WALSH: JUST TO CLARIFY, BEING IN THE CITY DOES NOT TRIGGER REQUIREMENT FOR YOU ALL OR SAWS TO DO ANYTHING. THE IMPACT FEE IS STILL AN ISSUE. I JUST SHARED WITH YOU THAT FACT CONDITION THAT -- THAT COULD BE A CONDITION TO REVIEW IF YOU CHOOSE TO ASK SAWS, THE SAWS BOARD, TO LOOK AT IT FROM A POLICY STANDPOINT. 
          BUT THAT DOES NOT -- THAT DOES NOT FORCE THE COUNCIL OR SAWS TO DO ANYTHING DIFFERENT THAN THEY'RE ABLE TO DO RIGHT NOW. 
          >> MAYOR JONES: THANK YOU. I'M GOING TO ASK THE OBVIOUS QUESTION, IS IT NOT POSSIBLE FOR THE COUNTY TO PAY FOR THE 
          ENTIRE THING? >> 
          >> YES. IT'S POSSIBLE. >> MAYOR JONES: THEY CAN 
          PAY FOR THE WHOLE THING? OKAY. >> AND THEY HAVE A HISTORY OF DOING THAT ON THE SOUTH SIDE WITH REBECCA FLORES, SAME SORT 
          OF CIRCUMSTANCE. >> MAYOR JONES: ALL RIGHT. 
          THAT'S HELPFUL. THANK YOU. AND THEN, TROY, JUST TO REITERATE THE POINTS ON THE RATE REQUEST, IN TERMS OF WAY FORWARD, WITHIN THE RANGE, RIGHT -- WITHIN THE RANGE, AS YOU MENTIONED OVER TIME, AS WE, RIGHT, GO THROUGH THIS, IF IT'S WITHIN THE RANGE, IT WOULD BE AN ADMIN REVIEW. ANYTHING THAT GOES BEYOND THE MAXIMUMS WOULD HAVE TO COME BACK TO COUNCIL FOR ACTION, CORRECT? 
          >> ELLIOTT: THAT'S CORRECT. >> MAYOR JONES: OKAY. 
          GREAT. AND AS THE MINIMUMS HAVE BEEN LOWERED IN THE TWO OUT YEARS, IS THERE ANY ANALYSIS THAT SHOWS YOU THAT THOSE MINIMUMS ARE 
          MORE LIKELY TO BE ACHIEVED? >> ELLIOTT: MORE LIKELY 
          TO BE ISSUED? >> MAYOR JONES: ACHIEVED? >> ELLIOTT: ACHIEVED? WE DID GO BACK AND LOOK AT IT AND WE STRESSED THE MODELING TERMS OF HOW TO GET TO THE MINIMUM, MANAGING THEIR CIP, MANAGING THEIR FINANCIAL 
          [00:50:01]
          METRICS, SO IT IS ACHIEVABLE. >> MAYOR JONES: IS IT 
          MORE ACHIEVABLE THAN WHAT IT WAS LAST TIME? >> ELLIOTT: I THINK THEY'RE TAKING ON ADDITIONAL RISK BY DOING THIS, LOWERING THOSE MINIMUMS FROM WHERE THEY WERE LAST TIME BY 1%. IT IS ACHIEVABLE, BUT I THINK IT'S GOING TO BE UP TO THEM TO PROVE NOW, IF THEY WANT TO GO ABOVE THAT, IT MAKES IT MORE DIFFICULT, BECAUSE THEY LOWERED THAT BASE, THAT 
          GUARANTEED RATE. >> MAYOR JONES: OKAY. DO YOU HAVE ANYTHING TO 
          ADD TO THAT? >> MAYOR, THE FACT THAT WE LOWERED THE FLOORS AND THE FACT THAT WE HAVE A RATE STUDY AND COSTABLE COST ANALYSIS COMING UP IN '27 THAT WILL BE FINISHED IN '28, EITHER IT'S GOING TO HELP US PROVE THAT WE NEED HIGHER NUMBERS CLOSER TO THE CEILING, OR FRANKLY, PROVE THAT WE DON'T. BECAUSE IT WILL BE A VERY INDEPENDENT STUDY AS TO WHAT OUR NEEDS ARE FOR THE NEXT FIVE YEARS. SO THAT WILL HELP DRIVE THAT CONVERSATION WE HAVE WITH ERIK AND HIS OFFICE. 
          >> MAYOR JONES: OKAY. ALL RIGHT. THANK YOU. 
          COUNCILWOMAN SPEARS, PLEASE? >> SPEARS: THANKS THANKS, MAYOR. I JUST WANTED TO KIND OF GIVE A LITTLE BIT OF HISTORY ON THE VILLAS, TOO, AND SPEAK TO  WHAT THIS IS ABOUT BECAUSE I DID HAVE SOME -- WORK ON THIS WHEN I WAS AT THE COUNTY. 
          BUT IF WE WAIT -- THE URGENCY HERE IS ABOUT THAT ARPA FUNDING, IT HAS TO BE SPENT BEFORE THE END OF THIS YEAR, AND IT WAS THE NUMBER ONE RATED PROJECT IN THE ARPA FUNDING AT THE COUNTY. AND IT'S $2 MILLION. 
          AND THEY HAVE SPENT -- THIS NEIGHBORHOOD -- I WENT OUT THERE. 
          AND I WALKED AROUND, AND IT'S VERY BAD. AND IT DOES POSE A HUGE PUBLIC HEALTH RISK TO OUR AQUIFER. WE HAVE LETTERS THAT REFLECT THAT, TCEQ IS FINING THEM, THEY JUST GOT FINED EARLIER THIS YEAR, THEY'RE HAVING TO DO PAYMENTS ON THAT. AND IT'S -- THEY'VE SPENT A MILLION AND A HALF DOLLARS ON LAWSUITS, MAINTAINING THAT SYSTEM. 
          AND THESE ARE NOT -- I MEAN, THESE HOMES ON AVERAGE ARE AROUND 2,000 SQUARE FEET, THEY -- WHEN THESE PEOPLE PURCHASED THEIR HOMES, THEY ARE AT THE MEDIAN, YOU KNOW, 200-ISH RANGE. SO IT'S IMPORTANT TO UNDERSTAND THE BURDEN THAT THIS HAS PLACED ON THEM AS INDIVIDUALS. 
          AND, YOU KNOW, IT'S AROUND $20,000 THAT THEY'VE SPENT EACH INDIVIDUALLY OVER THE YEARS TRYING TO GET OUT OF THIS SITUATION THAT THEY'VE BEEN PLACED IN. WE HAVE A HISTORY AT THE CITY OF WAIVING IMPACT FEES AS RECENTLY AS DECEMBER 18TH OF 2025. WE WAIVED $787,000 ON A PROJECT, AND WE DID $500,000 ON ANOTHER PROJECT, AND I WOULD SAY THIS IS BECAUSE THEY ARE -- WILL BECOME DISTRICT 9 RESIDENTS. 
          AND -- BUT THE BIGGEST CONCERN FOR ME, BECAUSE Y'ALL KNOW I SAY IT ALL THE TIME, IS ABOUT OUR AQUIFER. I AM VERY CONCERNED, I WENT OUT THERE, I'VE SEEN IT. IT'S A MATTER OF TIME. 
          THIS SYSTEM IS DUCT TAPED TOGETHER. THESE ARE REGULAR PEOPLE LEARNING HOW TO MAINTAIN ON-SITE SEWER SYSTEMS, AND IT'S -- IT'S A REAL CONCERN BECAUSE I DON'T -- THE OTHER THING I DON'T UNDERSTAND WITH THE IMPACT FEES HERE IS THAT NO ONE -- CORRECT ME IF I'M WRONG HERE, ROBERT, NO ONE'S GOING TO BE ABLE TO TAP INTO THAT MAIN, RIGHT? THE MAIN IS STRICTLY FOR THIS DEVELOPMENT, CORRECT? 
          >> YES. >> SPEARS: SO I'M NOT SURE -- BECAUSE UNDER THE LOCAL GOVERNMENT CODE 395, IT HAS TO SHOW AN IMPACT TO THE DEVELOPMENT AROUND THE COMMUNITY. IT'S AN EXISTING COMMUNITY THAT WE'RE TALKING ABOUT. SO I DON'T UNDERSTAND HOW THE IMPACT FEE APPLIES -- OR HOW THAT WILL BE SPENT. EXPWROO THE FACT THAT THEY'RE CONNECTING TO OUR SYSTEM, REGARDLESS -- YOU CONNECT TO OUR SYSTEM. EVERY -- EVERY HOME, NEW HOME OR NEW BUSINESS, HAS TO PAY IMPACT FEES. FOR EXAMPLE, THE 700,000 IMPACT FEE WAIVER YOU WERE TALKING ABOUT WAS IN DISTRICT THREE. 
          THAT WAS PART OF THE HOUSING PROGRAM THAT Y'ALL CURRENTLY HAVE. 
          >> SPEARS: IS IT A NEW DEVELOPMENT? >> YES. 
          >> SPEARS: THIS IS AN EXISTING DEVELOPMENT, BECAUSE THE LOCAL GOVERNMENT CODE SAYS IT'S A NEW DEVELOPMENT THAT WOULD GENERATE REVENUE 
          FOR FUNDING. >> CHAPTER 395 DOES NOT APPLY TO THIS PARTICULAR 
          CIRCUMSTANCE. >> SPEARS: IT DOESN'T? IT'S AN -- THAT'S THE CHAPTER 395 TEXAS LOCAL GOVERNMENT CODE, ANDY, DOESN'T APPLY? 
          >> SEGOVIA: I'M SORRY, COUNCILWOMAN. ED, CAN YOU HELP -- ALL RIGHT. WE HAVE SOMEBODY COMING UP WITH MORE KNOWLEDGE, 
          [00:55:04]
          COUNCILWOMAN. >> KEITH MARTIN, SENIOR CORPORATE COUNCIL WITH THE SAN ANTONIO WATER SYSTEM. COUNCILWOMAN, NEW DEVELOPMENT IS DEFINED WITHIN CHAPTER 395 AND IT IS DEFINED WITHIN OUR UTILITY SERVICE REGULATIONS. IN FACT, WE MIRROR THAT DEFINITION IN THE STATUTE, AND IT SAYS ANY -- NEW DEVELOPMENT INCLUDES ANY ALTERATION FOR IMPROVEMENT TO ASSIST OR CONVERSION OF A SYSTEM THAT INCREASES SERVICE UNITS. AND SO THEY ARE ALTERING AND CONVERTING THE SYSTEM FROM THEIR OWN SYSTEM TO CONNECT TO SAWS AND IT INCREASES THE SERVICE UNITS FOR SAWS BY 75 HOMES. 
          SO IT DOES MEET THE DEFINITION OF NEW DEVELOPMENT CODE IN THE 
          STATUTE AND THE REGULATIONS. >> SEGOVIA: SO, COUNCILWOMAN, IF I CAN PUT THAT MORE IN LAYMAN'S TERMS, I THINK THEY'RE SAYING -- UNDER THE STATUTE, WHEN YOU SAY NEW, IT'S MORE NEW TO THE UTILITY, RIGHT, IN OTHER WORDS, NEW DEVELOPMENT AS IT COMES FROM THE 
          PERSPECTIVE OF SAWS. >> YEAH, IT'S NOT JUST NEW DEVELOPMENT FROM THE GROUND UP. IT'S ANY ALTERATION OR CONVERSION OF A 
          DEVELOPMENT TO SOMETHING ELSE. >> SPEARS: UH-HUH. 
          >> AND THEY'RE CONVERTING FROM BEING OWNED AND OPERATED BY THE HOA AND THEY PROVIDING THE SERVICES TO SAWS PROVIDING THE SERVICES. 
          AND SAWS HAS NOT PROVIDED ANY SERVICES OUT THERE, SO THIS IS ALL NEW 
          DEVELOPMENT FOR SAWS. SPE >> SPEARS: OKAY. 
          WELL, I WOULD JUST MAINTAIN THIS IS A 75-UNIT NEIGHBORHOOD THAT HAS BEEN PROTECTING OUR AQUIFER BY THREE OR FOUR PEOPLE MAINTAINING THIS DUCT-TAPED SYSTEM, AND WE ARE JUST ONE REALLY BAD THUNDERSTORM AWAY FROM IT REALLY AFFECTING OUR DRINKING WATER, AND WE HAVE LETTERS TO THAT EFFECT. THAT'S HOW THEY GOT THE ARPA FUNDING. 
          THEY WERE ABLE TO PROVE THAT. AND I THINK I JUST FEEL SO STRONGLY ABOUT IT BECAUSE I WENT OUT THERE AND WALKED IN IT AND SAW HOW DISGUSTING IT IS AND HOW HARD IT IS ON THE AREA AND THE FACT THAT IT'S -- IT'S RIGHT NEXT TO SO MANY [INDISCERNIBLE] FEATURES OUT THERE AND I'M JUST SUPER CONCERNED ABOUT THE PUBLIC HEALTH AND OUR AQUIFER AND WHAT THIS COULD MEAN FOR ALL OF SAN ANTONIAN -- ALL OF SAN ANTONIO. AND, YOU KNOW, THESE PEOPLE ARE NOT MILLIONAIRES, THEY ARE JUST AVERAGE PEOPLE IN MEDIAN AVERAGE HOMES IN SAN ANTONIO AND THEY'RE BEING ASKED TO DO THE IMPOSSIBLE. 
          AND THEY HAVE, SO FAR, AND NOW THEY'VE GOTTEN SO FAR ALONG, THEY'RE AT THE FINISH LINE WITH ARPA FUNDING THAT HAS TO BE SPENT BY THE END OF THIS YEAR, SO THE URGENCY FOR -- TO ME IS THAT THEY LOSE ALL OF THAT. 
          AND ANNEXATION TIME, WHO'S GOING TO PAY FOR THAT MAIN? YOU KNOW, THAT'S GOING TO BE RATEPAYERS. AND NOT TO MENTION, THEY'LL BECOME BASE WATER RATEPAYERS. THEY'RE ALREADY SAWS DRINKING WATER PAYERS. 
          AND THAT THEY WILL BECOME DISTRICT 9 RESIDENTS AND THAT THE BIGGER PROBLEM BEING THE PUBLIC HEALTH EMERGENCY HERE. IT'S VERY SERIOUS, IT'S OF GRAVE CONCERN TO ME THAT -- I MEAN, WE HAVE A HISTORY OF WAIVING -- OF WAIVING THE IMPACT FEES AT A MUCH HIGHER AMOUNT THAN WHAT'S BEING ASKED FOR TODAY, AND I JUST REALLY HOPE THAT MY COLLEAGUES CAN UNDERSTAND FROM THE POINT OF VIEW OF A PUBLIC HEALTH ISSUE WHY THIS IS SO IMPORTANT, BUT ALSO JUST AS, YOU KNOW, DO YOU WANT THIS IN YOUR AREA? WHAT WOULD YOU WANT? AND YOU HAVE COME THIS FAR, YOU'VE GOTTEN -- LIKE MORE THAN THREE-QUARTERS OF THE FUNDING. 
          THEIR MONEY THAT THEY GOT FROM THEIR SETTLEMENT, WHICH CAN'T BE DISCLOSED AS PART OF THE SETTLEMENT, IS BEING USED TO FUND THE REST OF THAT. SO ASKING A WAIVER, WHICH ISN'T ASKING THEM TO PONY UP MONEY, IT'S JUST A WAIVING OF THE FEES, IN THE AMOUNT OF $415,000 JUST -- IT FEELS LIKE, MAN, YOU DON'T WANT TO THROW THE BABY OUT WITH THE BATH WATER, YOU KNOW? YOU JUST WANT TO -- LET'S JUST GET THIS DONE. AND IT'S SOMETHING THAT IS MOST IMPORTANT FOR OUR AQUIFER. THAT'S THE ONLY REASON I EVEN KNOW ANYTHING ABOUT THIS IS BECAUSE OF THE AQUIFER. SO I REALLY URGE MY COLLEAGUES TO UNDERSTAND THE PLIGHT OF THIS NEIGHBORHOOD, THIS PARTICULAR NEIGHBORHOOD AND WHAT THEY'VE BEEN GOING THROUGH FOR FIVE YEARS. THERE'S NEWS COVERAGE OF THIS, YOU CAN SEE REALLY GOOD VIDEO ABOUT IT. THE LETTERS, I THINK YOU ALL HAVE, ABOUT THE PUBLIC SAFETY RISK THAT THIS POSES TO OUR AQUIFER, AND, YOU KNOW, THAT'S OF THE UTMOST CONCERN TO ME, ESPECIALLY CONSIDERING OUR HISTORY OF WAIVING FEES IN THE PAST AND THE AMOUNTS THERE. 
          [01:00:03]
SO I WOULD ASK YOU TO REALLY CONSIDER THIS -- AND, YOU KNOW, I'M GLAD THAT WE BROUGHT IT HERE, BECAUSE I DO THINK WE NEED TO HAVE SOME TALK ABOUT THE POLICY REGARDING PUBLIC HEALTH AND THE ABILITY FOR SAWS TO MAKE DECISIONS IN THAT REGARD MOVING FORWARD, BUT THE URGENCY HERE TO ME IS ABOUT THE ARPA FUNDING, WE DON'T WANT TO LOSE THAT ARPA FUNDING TO GET THIS PROJECT FINISHED. THAT'S IT. 
          THANK YOU. >> MAYOR JONES: THANKS. COUNCILWOMAN, BASED ON YOUR BACKGROUND WITH THE ISSUE, DO YOU KNOW IF THERE'S ADDITIONAL ARPA 
          MONEY THAT CAN COVER THE BALANCE? >> SPEARS: NO, IT'S ALL BEEN SPENT. IN FACT, THIS PROJECT SHOULD HAVE BEEN DONE 
          ABOUT THREE YEARS AGO, TWO OR THREE YEARS AGO. >> MAYOR JONES: DUNE WHY 
          IT WASN'T? >> SPEARS: I THINK THEY WERE FINISHING OUT SOME OF THE LITIGATION PIECE, AND THAT TOOK A LITTLE WHILE. 
          AND THEN THERE WAS THIS IMPACT FEE FEES. >> MAYOR JONES: OKAY. 
          THANK YOU. COUNCILWOMAN ALDARETE GAVITO, PLEASE. 
          >> GAVITO: THANK YOU. I'LL START WITH SAWS. I DO APPRECIATE, MR. PUENTE'S WILLINGNESS TO WORK WITH US, I DO KNOW WE'VE MET A COUPLE OF TIMES TO SEE HOW WE CAN WORK TOGETHER IN A UNIFIED FASHION GOING FORWARD. I KNOW THAT A DELAY WAS NOT IDEAL FOR YOU ALL, BUT I'M GLAD THAT IT KIND OF GAVE US THE RESET BUTTON AND THE ABILITY TO WORK TOGETHER TO MAKE SURE THAT SAWS HAS WHAT THEY NEED TO DO WHAT YOU ALL DO FOR OUR COMMUNITY, BUT ALSO, TOO, FOR US, TO MAKE SURE THAT WE'RE GETTING THE BEST BET FOR OUR RESIDENTS. MY -- IT'S NO SURPRISE, MY BIGGEST CONCERN WITH SAWS HAS BEEN WATER LEAKS. 
          I WAS SURPRISED TO SEE THE WATER THE LEAKS -- AMOUNT OF MILES DOWN, I THINK IN A BOARD MEETING OVER THE SUMMER, BUT I'M GLAD THAT YOU ALL RESTORED IT TO 77. 
          THAT SAWS HAS FOR THE WATER LEAKS THAT YOU ALL GAVE US, AS WELL AS WHERE WE GET THE MOST CALLS FOR WATER LEAKS, WE BASICALLY MAPPED IT WITH OUR CONSTITUENT CALLS, AND THEY ALIGN PERFECTLY. THANK YOU SO MUCH FOR BEING TRANSPARENT WITH THAT INFORMATION, FOR PROVIDING THAT INFORMATION, FOR BEING TRANSPARENT WITH THAT INFORMATION, BECAUSE IT ALLOWS ME TO LET OUR RESIDENTS KNOW THAT, YOU KNOW, WE WANT TO GET RID OF THESE WATER LEAKS, SAWS HAS -- IS HITTING THE FLAIL ON THE HEAD WITH WHERE -- NAIL ON THE HEAD WITH WHERE THE PROBLEM AREAS ARE. 
          YOU KNOW, I STILL WOULD LOVE TO PUSH TO GET A LOWER RATE FOR CUSTOMERS. OBVIOUSLY, COUNCIL, US, AS A BODY PASSED A PROPERTY TAX RATE INCREASE LAST -- WAS THAT LAST WEEK? TWO WEEKS AGO. YOU KNOW, THERE'S SO MANY OTHER AGENCIES AND ORGANIZATIONS, SAN ANTONIO RIVER AUTHORITY, THE SCHOOL DISTRICTS, ALL OF THAT, THAT ARE GOING TO BE PILING ON OUR RESIDENTS. 
          OBVIOUSLY THIS IS A SIGNIFICANT BILL, SO, YOU KNOW, I AM STILL GOING TO MAKE ONE MORE PUSH FOR US TO GET A LOWER BILL HOWEVER WE CAN. 
          AND THEN ALSO, TOO, I DO APPRECIATE ACTUALLY, TROY, YOUR PRESENTATION, SLIDE 3 OF TROY'S PRESENTATION ON THE RATE PLAN COMPARISONS, BECAUSE I DO THINK THAT IT IS A GOOD DEMONSTRATION OF WHAT SAWS HAS DONE TO REDUCE THE INCREASE SO FAR. SO THANKS FOR OUTLINING -- FOR OUTLINING THAT FOR US. SO, YOU KNOW, I KNOW -- I'LL LEAVE IT WITH THIS: THANK YOU FOR YOUR TRANSPARENCY, THANK YOU FOR YOUR WILLINGNESS TO WORK WITH US, TO MAKE SURE THAT DISTRICT 7 NEEDS ARE BEING MET. OBVIOUSLY, WE'D ALL LOVE TO SEE A LOWER WATER BILL, BUT I'VE BEEN VERY TRANSPARENT WITH MY RESIDENTS IN THAT INVESTING IN OUR UTILITIES IS SOMETHING THAT WE HAVE TO DO, RIGHT? WE HAVE TO INVEST IN SAWS, WE HAVE TO INVEST IN CPS. AT THE SAME TIME, WE NEED TO MAKE SURE THAT THE RATE CASE THAT SAWS AND CPS ARE BRINGING TO US ARE THE BEST -- ARE THE BEST RATE CASES POSSIBLE, RIGHT? AND THAT'S JUST US DOING OUR DUE DILIGENCE, THAT'S JUST US DEFENDING OUR RESIDENTS' POCKETBOOKS, THAT'S JUST IT'S, YOU US DOING OUR HOMEWORK ON COUNCIL. 
          I DON'T HAVE ANY QUESTIONS, BUT THANK YOU FOR YOUR WILLINGNESS TO 
          HELP OUT WITH THAT. >> THANK YOU VERY MUCH. THANK YOU FOR BEING VERY AVAILABLE THROUGH JUNE, JULY, ALL, SEPTEMBER. I THINK I MET WITH YOU MOST OFTEN OF ALL THE COUNCILMEMBERS REGARDING THE ISSUE BECAUSE FRANKLY, YOU WERE THE MOST VOCAL ABOUT THIS ISSUE. 
          AND I NEEDED TO ADDRESS IT, I NEEDED TO EXPLAIN IT TO YOU, SO THANK YOU 
          FOR THAT OPPORTUNITY. >> GAVITO: YEAH. THANK YOU. 
          MOVING ON TO THE SECOND ISSUE, I DEFINITELY HEAR MY COLLEAGUE COUNCILWOMAN 
          [01:05:02]
SPEARS' CONCERN, BUT I, TOO, HAVE A TON OF HOUSES IN DISTRICT 7 AND THE ALAMO FARMSTEAD AREA AND THE INGRAM HILLS AREA, THE OAK HILLS AREA, THAT ALSO ARE FACED WITH, YOU KNOW, THESE -- SEVERAL THOUSAND DOLLARS FEES JUST TO PLUG INTO SAWS. AND SO IT'S A LITTLE UNSETTLING BECAUSE THE ASK HERE IS TO TAKE CARE OF COUNTY RESIDENTS WHEN WE HAVE CITY RESIDENTS WHO ALSO NEED OUR HELP. SO I TOTALLY AGREE WITH THE MAYOR IN SAYING, LET'S LET THE COUNTY PAY FOR IT. I UNDERSTAND THE URGENCY OF THE ARPA FUNDS, BUT TO ME, OUR COUNCIL SHOULD NOT BE FIXING THE MISTAKES OF THE COUNTY. WE HAVE A LOT OF OUR OWN PROBLEMS, AND I'D HATE TO SEESAWS KIND OF SOAK UP THOSE FEES, ESPECIALLY RIGHT NOW, AS WE'RE ASKING FOR A RATE INCREASE. BUT I WILL SAY, I DO THINK A LESSON OUT OF THIS IS THAT -- I THINK SEVERAL OF OUR DISTRICTS HAVE -- YOU'RE BRINGING THIS UP, BECAUSE NOW MAY BE THE TIME FOR US TO LOOK AT HOW WE'RE GOING TO DEAL WITH THIS I HEAR COUNCILWOMAN SPEARS' CONCERN ON HOW IT IMPACTS OUR AQUIFER. I KNOW THERE'S NOT A TON OF HOMES BUT THERE'S PROBABLY ENOUGH THAT WE NEED TO START LOOKING AT WHAT THAT OVERARCHING POLICY COULD LOOK LIKE AT THE CITY LEVEL AND ALSO, IN THIS INSTANCE, WE'RE WHEN GOING TO BE ANNEXING A PORTION, BRINGING THAT INTO OUR CITY LINES. 
          ERIK, I'M NOT SURE WHO WOULD DO SUCH A POLICY. IS THAT SOMETHING SAWS TAKES A STAB AT? IS THAT SOMETHING WE TAKE A STAB AT? 
          >> WALSH: I THINK THE COUNCIL GIVES GENERAL GUIDANCE TO ROBERT TO BE ABLE TO ADDRESS THAT WITH THE SAWS BOARD AND WHATEVER PROCESS THEY GO THROUGH OVER 
          THERE. >> PE.>> PUENTE: YES. AND EVENTUALLY COMES BACK TO COUNCIL. THIS WAS ONE OF THE INFAMOUS LIST OF QUESTIONS I GOT FROM COUNCILMAN MUNGIA WAS IMPACT FEES. OUR RESPONSE TO HIM WAS THERE'S A PROCESS TO DO THIS AND LET'S WORK THAT PROCESS OUT. 
          IT INCLUDES US EACH ONE OF YOU GETS TO HAVE --H ONE OF YOU GETS AN APPOINTMENT. 
          IS THAT CORRECT, TRACY? YES. EACH ONE OF YOU GETS AN APPOINTMENT TO THAT COMMITTEE SO YOUR ISSUES WILL BE ADDRESSED. 
          AND THE ISSUE OF THE VILLAGE OF TIMBERWOOD AND THE ONES COUNCILMAN MUNGIA BROUGHT UP CAN BE ADDRESSED. I KNOW MELISSA, YOUR PREDECESSOR HAD SOME ISSUES TOO. COUNCILWOMAN VIAGRAN IN HER AREA, I REMEMBER TALKING TO 
          REBECCA ABOUT THOSE ISSUES. >> GAVITO: YEAH, THAT'S MY POINT. 
          I THINK SO MANY OF US HAVE THESE POCKETS, THESE NEIGHBORHOODS OF THESE RESIDENTS WHO WOULD POTENTIALLY FACE REALLY HEFTY FEES ON PROBABLY HOMES THAT ARE A LOT LESS EXPENSIVE THAN THE ONES Y'ALL ARE TALKING ABOUT. 
          AND SO PUTTING THAT BURDEN ON THEM IS JUST NOT FAIR. YOU KNOW, WE WORKED WITH CECILIA ON -- SHE WAS SO HELPFUL -- A GENTLEMAN WANTED TO SELL HIS LOT, NOT REALIZING THIS AND WAS QUOTED SEVERAL OF THOUSANDS OF DOLARS JUST FOR HIM TO SELL THIS LOT. THOSE ARE ISSUES THAT OUR RESIDENTS ARE FACING. 
          AGAIN, I DO APPLAUD COUNCILWOMAN SPEARS FOR BRINGING THIS UP. 
          IT'S TIME FOR US TO HAVE A POLICY DISCUSSION SO THAT WAY EACH OF US ARE NOT DEALING WITH THESE POCKETS AND CAN HAVE JUST AN OVERALL PLAN GOING FORWARD. 
          BUT IT IS HARD FOR ME TO SUPPORT THIS STRICTLY BECAUSE IT IS THE COUNTY AND I THINK THE COUNTY SHOULD MAKE IT RIGHT FOR Y'ALL. THANK YOU. 
          >> MAYOR JONES: THANK YOU. OH, DID YOU WANT TO SAY SOMETHING? 
          COUNCILMEMBER MEZA GONZALEZ, PLEASE. >> GONZALEZ: THANK YOU. 
          I'LL START WITH YOU. THANK YOU FOR THE PRESENTATION AND CITY STAFF FOR ALL THE WORK YOU DID TO HELP GET US HERE AND SAWS, YOU AND YOUR TEAM FOR ALL THE WORK AS WELL. I APPRECIATE RESPONDING TO MY COLLEAGUES' FEEDBACK. 
          WE WERE KIND OF SPLIT ON THAT DECISION A FEW MONTHS AGO BUT I'M GLAD THAT WE'VE ALL HAD OUR CONVERSATIONS AND SEEMED TO HAVE WORKED THROUGH A LOT OF THOSE POINTS. SO I THINK OUR RESIDENTS DESERVE A WATER SYSTEM THEY CAN COUNT ON. ONE THAT IS AFFORDABLE TODAY AND PREPARED FOR THE FUTURE. 
          SO I WANT TO BE CONFIDENT THAT THIS BUDGET GIVES THEM BOTH. 
          I THINK WE ARE TALKING ABOUT A PLAN THAT RESTRAINS COSTS, NOT ONLY FOR THE RESIDENTS BUT FOR THE WORK TO BUILD OUT WHAT'S NECESSARY AS THE CITY CONTINUES TO GROW TO 
          [01:10:04]
SUSTAIN YOUR SAWS DAY-TO-DAY OPERATIONS, AND TO PROTECT THE CAPACITY TO MAKE THOSE NECESSARY IMPROVEMENTS. LIKE WAS STATED, THIS IS A CASE THAT WE HAVE TO BRING TO OUR RESIDENTS, WHETHER A TOWN HALL OR A NEWSLETTER OR AT THE GROCERY STORE, WHICH HAPPENS TO ME ALL THE TIME. BUT I WANTED TO ASK ABOUT THE $600 MILLION IN THE PROPOSED REDUCTIONS. DID ANY OF THOSE REDUCTIONS LEAVE A SIDE OF COMPLIANCE WITH ANY CODES OR ANY REGULATORY REQUIREMENTS OR A RISK OF COMING OUT OF 
          COMPLIANCE? >> PUENTE: NO. IT IS IMPERATIVE OUR COMMUNITY KNOWS THAT THE SEVEN MOST HIGHEST-PRIORITY PROJECTS WERE LEFT IN THE PLAN AND IN THE TIME-FRAME IN WHICH WE BROUGHT THEM TO YOU IN JUNE. 
          IT WAS PROJECTS THAT WERE LESS THAN THOSE SEVEN THAT WE ARE GOING TO PHASE INTO OTHER YEARS OR POSTPONE ENTIRELY INTO OTHER YEARS. AS FAR AS RESILIENCY, WE GOT IT COVERED. THAT'S PART OF STATE LEGISLATION. 
          AS FAR AS PERMIT VIOLATIONS OR TCEQ REGULATIONS, THOSE ARE GOING TO BE MET. 
          THOSE ARE THE MOST IMPORTANT PROJECTS. >> GONZALEZ: THANK YOU FOR THAT. AND I GUESS HOW DID WE -- WELL, YOU KIND OF ANSWERED THAT. HOW MUCH OF THESE REDUCTIONS WILL BE FELT DIRECTLY BY RESIDENTS IN THE FORM OF SERVICE OR DELAYED IMPROVEMENTS TO THEIR 
          NEIGHBORHOOD? >> PUENTE: IT WOULD BE THE SAME IMPACT THAT WE WERE TALKING ABOUT BACK IN JUNE. IN OTHER WORDS, THE LOST WATER INITIATIVE THAT WE HAVE CALLED WATER FORWARD, OR THE OVERALL PLAN, WAS TO REPLACE 77 MILES. 
          THAT'S BACK IN. SO THAT PLAN TO REDUCE THAT WATER LOSS IS THE SAME SO THERE WOULD BE NO DIFFERENCE FOR THEM. THE OTHER PARTS OF THE PLAN THAT DEAL WITH OUR WASTEWATER TREATMENT PLANT, THOSE WILL NOT AFFECT THE EVERYDAY LIFE OF OUR RESIDENTS. THEY WILL STILL BE ABLE TO USE THE WATER AND GET RID OF IT AFTER THEY HAVE USED IT, EITHER THEIR SINKS, SHOWERS, COMMODES. IT WILL GO INTO OUR SYSTEM. WE WILL COLLECT IT, ACCEPT IT, AND TREAT IT. WE WILL TREAT IT TO THE STANDARDS OF OUR PERMIT. 
          SO ON A DAY-TO-DAY BASIS, THEY WILL NOT BE AFFECTED. WE, AT THE PLANT STAGE, MAY 
          HAVE TO MAKE SURE WE ABIDE BY THOSE REGULATIONS. >> GONZALEZ: THOSE ARE ALL MY QUESTIONS. THANK YOU FOR YOUR EFFORTS AND BEN AND TROY AND YOUR 
          TEAM. >> MAYOR JONES: THANK YOU. OH, GO AHEAD. 
          >> GONZALEZ: NO WORRIES. ON REGARDS TO THE VILLAS AT TIMBERWOOD, I HAD A COUPLE OF QUESTIONS. THE MAYOR MAY HAVE ASKED THIS. 
          IN REGARDS TO THE ZERO-INTEREST LOAN, IS IT A FIVE-YEAR? 
          WHAT WAS PRESENTED TO THE NEIGHBORHOOD? >> PUENTE: WE HAVE LIKE SITUATIONS, NOT SPECIFICALLY LIKE THIS, WHERE WE HAVE OFFERED TO PEOPLE THAT NEED TO PAY IMPACT FEES, TO PAY THEM OVER A FIVE-YEAR PERIOD. 
          WE ADD IT ON TO THEIR WATER BILL AND THERE'S A SMALL INTEREST TO THAT BECAUSE WE CANNOT GIVE OUR CREDIT TO A CUSTOMER BECAUSE OF STATUTORY RESTRICTIONS, CONSTITUTIONAL RESTRICTIONS. SO WE HAVE TO CHARGE THEM AN INTEREST RATE. 
          >> GONZALEZ: AND THE FIVE-YEAR PLAN, IS THAT JUST BASED ON -- 
          >> PUENTE: IT'S A POLICY THAT OUR BOARD ACCEPTED A FEW YEARS AGO TO HELP 
          ENTITIES IN THESE SITUATIONS. >> WOULD THERE BE 
          OPPORTUNITY TO EXTEND THAT TO MAYBE A TEN-YEAR PLAN? >> PUENTE: YES. 
          IT'S SOMETHING WE WOULD PRESENT TO OUR BOARD AND THE BOARD WOULD HEAR OUR 
          ARGUMENTS FOR OR AGAINST AND MAKE THAT DECISION. >> GONZALEZ: I SEE TWO 
          CITY ATTORNEYS GETTING UP, SO MAYBE NOT. >> 
          >> SEGOVIA: I JUST WANTED TO JUST CLARIFY SOMETHING. >> GONZALEZ: JUST MAKING SURE. AND THAT CONVERSATION IS TABLED? THE CONVERSATION ON THE LOAN. I THINK YOU SAID YOU HAD 
          THAT WITH THE NEIGHBORHOOD. >> PUENTE: OH, WE HAVE OFFERED IT TO THEM. 
          IT'S HARD FOR SAWS TO UNDERSTAND WHO "THEM" IS. I HAVE BEEN LOOKING AT THIS ISSUE SINCE THE DAYS OF KEVIN WOLFF BEING A COUNTY COMMISSIONER. 
          SINCE JOE KRIER BEING A COUNCIL MEMBER. EACH INDIVIDUAL I HAVE TALKED TO ABOUT THIS. AT DIFFERENT TIMES WE HAVE OFFERED THOSE AVENUES. 
          >> GONZALEZ: I UNDERSTAND BUT WITH THIS PARTICULAR NEIGHBORHOOD, IS THAT 
          CONVERSATION DEAD? >> PUENTE: IT IS UP TO THEM TO ACCEPT OR NOT. 
          BUT IT'S ON THE TABLE. >> GONZALEZ: IT'S ON THE TABLE. 
          AND THE CURRENT ANNEXATION AGREEMENT, WHEN DO THEY COME INTO THE CITY? 
          >> WALSH: 2032. >> GONZALEZ: IS THERE A WAY TO MAKE THAT HAPPEN 
          SOONER? >> WALSH: I THINK IF THE NEIGHBORHOOD PETITIONED THE CITY THEN THE COUNCIL COULD ACCEPT THAT AND WE COULD ANNEX THEM SOONER. 
          [01:15:04]
ARE YOU ASKING IN TERMS OF -- IN THAT CASE, THAT BECOMES A BOTH A COST OF 
          SERVICE AND REVENUE THAT WE WOULD RECEIVE EARLIER? >> GONZALEZ: RIGHT. 
          >> WALSH: YEAH, THE NEIGHBORHOOD CERTAINLY COULD PETITION FOR EARLY 
          ANNEXATION. >> GONZALEZ: THAT'S JUST THROUGH? 
          >> WALSH: STATE LAW. >> GONZALEZ: WHAT DOES A PETITION LOOK LIKE? 
          >> WALSH: I DON'T KNOW THE DETAILS BUT IT WOULD BE A PETITION THAT THEY WOULD 
          REQUEST ANNEXATION OF THE CITY. >> SEGOVIA: WE WANT TO 
          VERIFY IT WOULDN'T REQUIRE A VOTE. >> GONZALEZ: THOSE ARE ALL 
          MY QUESTIONS. >> CASTILLO: I DON'T NECESSARILY HAVE ANY ADDITIONAL QUESTIONS ON THE RATE ADJUSTMENT. I DID WANT TO DISCUSS THE FEE WAIVER ITEM. I THINK THE DISTRICT 5 RESIDENTS THAT YOUR TEAM HAVE HELPED GET CONNECTED TO THE LADDERS TO THE PEOPLE PROGRAM THAT AREN'T CONNECTED TO SEWAGE AND/OR WATER INFRASTRUCTURE WITHIN THE URBAN CORE. 
          AS FOLKS HAVE MENTIONED, THIS ISN'T LIMITED TO DISTRICT 5. 
          I KNOW A WEALTH OF SOUTH SIDE RESIDENTS AREN'T CONNECTED IN DISTRICT 7 AREN'T CONNECTED AND WE HAVE A ROLE AND RESPONSIBILITY TO ENSURE WE ARE PROTECTING PUBLIC HEALTH BY INVESTING IN PROGRAMS. APPRECIATE YOUR TEAM FOR INCLUDING THAT WITHIN OUR BUDGET CONVERSATIONS TO ENSURE THAT WE CAN MEET THOSE HAD BEEN TRYING TO WORK FOR YEARS WITH US TO GET HIS BLOCK CONNECTED TO A WATER LATERAL BECAUSE HE HAD BEEN OPERATING ON A SEPTIC TANK. IT IS PRETTY HORRID WHEN YOU'RE NOT CONNECTED AND YOU'RE SEEING SLUDGE SURFACE FROM YOUR FRONT YARD. 
          MR. JOSEPH ON RICHTER STREET AS WELL IS ON A SEPTIC TANK. GRATEFUL YOUR TEAM HAS HELPED CONNECT HIM TO A LATERAL. OF COURSE, A FAMILY ON LONE STAR, WHICH WE WERE ABLE TO WORK WITH NHSD AND YOUR TEAM TO GET THEM REIMBURSED FOR OVER $60,000 FOR THE INSTALLATION OF A LATERAL FOR THEIR HOME. 
          FOR MANY RESIDENTS IT'S BECAUSE OUR PROPERTIES HAVE BEEN REPLATTED AND REPLATTED AND NOW WE HAVE A SOLE OWNER OF A LATERAL AND NOW FOLKS ARE PUTTING IN SEPTICS. 
          I DO BELIEVE THERE IS VALUE IN DISCUSSING THE FEE WAIVER FEE WAIVER PARAMETERS. 
          IT SOUNDED LIKE CORNERS WERE CUT AND NOW THESE RESIDENTS ARE IN A SITUATION WHERE THEY ARE CONNECTED TO A SEPTIC TANK. EXPLORING WHAT STRONGER DEVELOPMENT EXPECTATIONS WOULD BE IN ORDER TO RECEIVE A FEE WAIVER IS SOMETHING THAT I WOULD LIKE TO HEAR DISCUSSED WITHIN THE BOARD AS WELL AS HERE AT COUNCIL. 
          AGAIN, THIS WOULD BE OUTSIDE OF THE SCOPE OF WHAT WE TYPICALLY APPROVE. 
          YES, WE HAVE A HISTORY OF APPROVING FEE WAIVERS BECAUSE WE HAVE THE PROGRAM, BUT THEY ARE WITHIN THE CITY OF SAN ANTONIO. I UNDERSTAND -- AND THE REQUEST HERE TODAY ALSO GOES BEYOND THE TYPICAL AMOUNT. IS THAT CORRECT? 
          >> PUENTE: THAT'S CORRECT. THE CURRENT FEE WAIVER PROGRAM IS EASY FOR SAWS TO BE INVOLVED IN BECAUSE IT'S A $3 MILLION BUDGET ITEM. SO WE KNOW EVERY YEAR TO BUDGET $3 MILLION OF REVENUE WE'RE NOT GOING TO RECEIVE BECAUSE COUNCIL IS GOING TO USE THAT FOR SPECIFIC PURPOSES. AND THEY'RE DESIGNATED OUT IN YOUR ORDINANCE. MOST OF IT IS CONCERNING HOUSING, AFFORDABLE HOUSING, 
          INNER-CITY HOUSING. >> CASTILLO: I APPRECIATE THAT, ROBERT. 
          AGAIN, I JUST WANT TO EMPHASIZE THERE ARE MANY MORE RESIDENTS IN DISTRICT 5 AND THROUGHOUT THE CITY OF SAN ANTONIO THAT ARE TRYING TO IDENTIFY RESOURCES TO GET CONNECTED TO LATERAL AND OFF OF SEPTIC TANKS. I WELCOME THAT CONVERSATION WITH SAWS BUT ALSO UNDERSTAND WITH THE LIMITED FUNDS -- AND WE'RE ALSO HAVING THIS CONTENTIOUS CONVERSATION. ARE WE GOING TO HAVE A RATE ADJUSTMENT FOR SAWS AND HOW IS THAT GOING TO IMPACT OPPORTUNITY FOR OUR RESIDENTS TO GET CONNECTED. I WANT TO THANK YOU AND YOUR TEAM FOR YOUR WORK. 
          AS A DISTRICT THAT HAS MANY ON SEPTIC TANKS, I UNDERSTAND THE VALUE OF THE FEE WAIVER PROGRAM BUT I DO BELIEVE, AS A COUNCIL, WE COULD BE MORE INTENTIONAL, CONNECTING OUR RESIDENTS TO THE PROGRAMS THAT ARE AVAILABLE. 
          THANK YOU. >> PUENTE: THANK YOU. >> MAYOR JONES: WOULD ANYONE ELSE LIKE TO SPEAK ON THESE ITEMS? COUNCILWOMAN VIAGRAN. 
          PLEASE SIGN IN. >> VIAGRAN: THANK YOU. THANK YOU, ROBERT. 
          I WAS READY TO SUPPORT THIS IN JUNE BECAUSE MY RESIDENTS HAVE THE NEED FOR GETTING 
          [01:20:10]
OFF BEXAR MET OR FINDING THOSE PIPES AND MAKING SURE THEY ARE CONNECTED. 
          THANK YOU FOR LISTENING TO THE COUNCIL MEMBERS AND COMING BACK WITH WHAT YOU DID. I LOOK FORWARD TO SEEING HOW THAT'S GOING TO PLAY OUT IN OUR DISTRICT. I KNOW THAT WE HAVE COMMUNITIES READY TO GO SAYING HERE'S MY STREET FIRST. I KNOW Y'ALL ARE GOING TO GO OUT AND TALK WITH THEM AND SEE WHO IS READY AND COORDINATE WITH OUR PUBLIC WORKS AND MIKE SHANNON AND CAPITAL DELIVERY IN TERMS OF HOW WE CAN GET THAT DONE. 
          I LOOK FORWARD TO THAT HAPPENING. I THINK IT'S LONG OVERDUE AND I THINK MY RESIDENTS ARE AWARE OF THAT IN TERMS OF HOW WE NEED TO STAY CONNECTED AND HOW WE NEED TO PROTECT OUR WATER SYSTEM. I LOOK FORWARD TO THAT. 
          ANDY, AS ONE OF THE -- USING THIS AND THE CITY FOR THE LEGACY, THESE WERE SENIOR APARTMENTS. THEY WERE AFFORDABLE APARTMENTS. 
          BUT AGAIN THEY WERE CITY OF SAN ANTONIO RESIDENTS. IS IT POSSIBLE TO MOVE UP THE ANNEXATION FOR VILLA AT TIMBERS TO 2028 OR 2029? . 
          >> SEGOVIA: ERIK ANSWERED IT AND HE ANSWERED IT CORRECTLY, COUNCILWOMAN. 
          YES. THERE'S ALWAYS AN OPPORTUNITY TO ACCELERATE THE ANNEXATION, AS LONG AS THE INDIVIDUALS AFFECTED AGREE TO IT BY PETITION OR 
          VOTE. >> VIAGRAN: I APPRECIATE THE COUNTY'S EFFORT TO MAKE THIS RIGHT WITH THE $2 MILLION. I THINK THEY NEED TO DO MORE. REBECCA FLORES HAS DONE MORE IN MY AREA IN THE SOUTHERN SECTOR. I WOULD REALLY LIKE TO SEE THAT HAPPEN. 
          BUT IF WE COULD MOVE UP THAT DATE, POSSIBLY GET THEM ON THE PAYMENT. 
          AND AS SOON AS THAT ANNEXATION DATE COMES UP AND WE'VE ANNEXED THEM IN, REALLY LOOKING AT HOW WE CAN HELP THEM UTILIZE WHAT WE HAVE HERE. 
          IN TERMS OF THE POLICY, I WOULD LIKE TO SEE SOMETHING COME FROM THE BOARD AND SAWS REGARDING WHERE DO WE MAKE EXCEPTIONS OR WHERE DO WE TAKE EXCEPTIONS TO THE COUNCIL, IF THEY MEET THESE THREE THINGS. I THINK THE QUESTIONS I HAVE HERE IS THAT WE DON'T KNOW THE AMOUNT OF THE SETTLEMENT. 
          THAT'S QUESTIONABLE. THE OTHER IS WHILE IT'S BEEN PLANTED, DON'T HAVE ENOUGH OF THE HISTORY OF WHEN THESE PROBLEMS BEGAN, WHY REALTORS KEPT ON SELLING THESE PROPERTIES. BECAUSE IF YOU TELL ME IT'S A TOWNHOME, WHAT I'M THINKING IS PEOPLE THAT RETIRE AND MOVE INTO IT OR STARTER HOMES. 
          SO, LIKE PEOPLE HAVE BEEN CONTINUALLY PURCHASING THIS PROPERTY, MAYBE SELLING THIS PROPERTY, WHY WASN'T IT INFORMED TO THEM THAT THEY WERE ON THIS SEPTIC SYSTEM AND WHEN DID THE ISSUES BEGIN, IF THERE WASN'T ANY DISCLOSURE BY THE OWNER? I FEEL LIKE THAT'S WHY HE SETTLED. THOSE ARE JUST THE QUESTIONS I HAVE REGARDING THAT AND I THINK THAT PART OF THAT ISN'T -- WE ASKED THE QUESTIONS OF OUR DEVELOPERS COMING IN. I THINK IT'S IMPORTANT THAT THE COUNTY STARTS ASKING THEIR QUESTIONS AS DEVELOPMENTS COME IN IN AND AROUND THEIR AREA. GRANTED, THIS HAPPENED -- THIS WAS PLATTED IN 1984 SO IT WAS MANY DECADES AGO. BUT AS WE BRING THEM INTO THE CITY FOLD, IF WE COULD GET THEM IN THERE SOONER, IF THEY GET ON THE PAYMENT PLAN AND THEN WE COME TO YOU AND SAY NOW WE CAN SEE WHERE WE NEED TO HELP WITH THE WAIVERS, I WOULD BE WILLING TO LOOK AT THAT. BUT AS OF RIGHT NOW, I THINK WHAT'S HARD IS THE UNKNOWNS, WHICH IS THE SETTLEMENT AND JUST REALLY WHEN THE PROBLEMS BEGAN. 
          SO THOSE ARE SOME DETAILS I THINK WE NEED BEFORE WE CAN CONFIDENTLY GO. 
          I THINK THE COUNTY NEEDS TO SPEND THEIR $2 MILLION ON THIS. 
          I THINK THAT'S IMPERATIVE AND I THINK THE COUNTY NEEDS TO LOOK AT FINDING THE FEES FOR THE WAIVER. BUT IF THIS IS THE ALTERNATIVE, IF WE COULD BRING THEM IN TO ANNEXATION SOONER -- BECAUSE THE OTHER THING IS WE LOOK AT POLICY. 
          IF SOMEBODY IS WITHIN ANNEXATION WITHIN TWO TO THREE YEARS, MAYBE SAWS LOOKS AT THEM AND SAYS DO WE USE THE FEE WAIVER? DO WE TAKE THIS TO THE COUNCIL AND RECOMMEND IT? BUT THIS IS SEVEN YEARS OUT AND THAT'S A LITTLE TOO LONG 
          FOR ME RIGHT NOW. THANK YOU. >> MAYOR JONES: THANK YOU. 
          COUNCILMAN MUNGIA, PLEASE. >> MUNGIA: THANK YOU, ROBERT FOR OUR CONVERSATIONS THAT YOU AND I HAVE HAD. I APPRECIATE THAT AND YOUR WILLINGNESS TO LOOK AT SOME OF THE THINGS I BROUGHT UP. AS WELL AS TO DEVELOP SOME LONG-TERM PLANNING. 
          [01:25:04]
OBVIOUSLY, I KNEW SOME OF THE THINGS WE TALKED ABOUT. I TOLD YOU UP FRONT I KNEW WAS NOT GOING TO BE IN THIS UPCOMING RATE INCREASE SO I KNOW IT'S A LONG-TERM STRATEGY THAT WE'RE TALKING ABOUT. I APPRECIATE YOU LOOKING INTO THAT AND THE COMMUNICATION WITH THE BOARD. 
          ACTUALLY, IF IT'S OKAY, I WOULD LIKE TO INVITE JALEN TO COME UP AND ANSWER A COUPLE OF QUESTIONS. WHAT WAS IMPORTANT TO ME WAS MAKING SURE THE BOARD BOUGHT INTO POLICY IDEAS IN THE LONG TERM. IF YOU COULD COMMENT ON THE UPLIFT, WE TALKED ABOUT OVERSIZING ISSUES WITH DEVELOPERS AND CONNECTION TO THE IMPACT FEE AND THE BIOSOLID CONTRACT ISSUES. IF YOU WANT TO TOUCH ON THOSE THINGS AND TALK TO ME A LITTLE BIT ABOUT THE PLAN THAT YOU ALL HAVE TO ADDRESS 
          THAT LONG TERM. >> SURE. THE INFORMATION THAT STAFF HAS PROVIDED TODAY REGARDING THE IMPACT FEE DISCUSSIONS AND DEALING WITH SMALL BUSINESSES AND SINGLE-FAMILY LOTS IS ONGOING. THOSE CONVERSATIONS WERE INITIATED A COUPLE OF MONTHS AGO AND THEY CONTINUE. I'M CONFIDENT WE'LL HAVE A RECOMMENDATION FOR BOARD CONSIDERATION THAT WILL BE IN ALIGNMENT WITH THE PROCESS THAT NEEDS TO BE INITIATED AT THE CITY WITH THEIR CAPITAL IMPACT FEE COMMITTEE, WHATEVER THE NAME OF IT IS. THAT IS ONGOING. 
          WE HEAR YOU VERY CLEARLY TODAY ABOUT THE DESIRE TO DEAL WITH THOSE IN CITY LIMITS, THOSE POCKETS OF INDIVIDUALS WHO HAVE BEEN LEFT UNCONNECTED TO WATER OR WASTEWATER SYSTEMS. IN DECEMBER, THAT CONTRACT THAT YOU MENTIONED WILL BE COMING UP FOR SAWS CONSIDERATION. WE HAVE BEEN BRIEFED BEFORE WITH ALL OF THE FACTORS OF THAT UNFORTUNATE INCIDENTS AND I HAVE GIVEN STAFF DIRECTION. IT MAY OR MAY NOT BE THAT VENDOR. 
          I THINK IT EXPIRES IN DECEMBER SO IT'S LIKELY WE COULD SEE IT BEFORE OR AFTER THAT CONTRACT EXPIRES. I'M TRYING TO REMEMBER THE OTHER. 
          >> MUNGIA: THE UPLIFT UPLIFT PROGRAM EXPANSION TO RENTERS. 
          >> IF A RENTER TODAY PAYS UTILITIES, OBVIOUSLY THEY CAN PARTICIPATE IF THEY MEET THE ELIGIBILITY FOR UPLIFT. THE CHALLENGE IS IF WE HAVE RENTERS THAT ARE NOT PAYING UTILITIES, WE CANNOT GO AROUND THE OWNER OR THE PROPERTY OWNER OR THE CUSTOMER THAT WE WOULD IN TURN HAVE. WE'RE STILL WORKING WITH LEGAL ON THE CHALLENGES WITH THAT PARTICULAR. WE'RE TRYING TO GET AN ESTIMATE OF HOW MANY PEOPLE OR HOW MANY FAMILIES WE'RE REALLY TALKING ABOUT. 
          SO WE ARE CONTINUING TO DISCUSS THAT. >> W 
          >> MUNGIA: I WOULD LIKE SOME OF THE PROPOSALS YOU ARE LOOKING AT, MAYBE MATCHING UP WITH CPS CUSTOMERS. IF THERE'S A CREDIT OPPORTUNITY WITH THAT. I WAS A RENTER IN A SINGLE-FAMILY HOME AND I HAD AN INDIVIDUAL WATER BILL BUT I THINK THE RENTAL COMPANY PROBABLY TOOK ALL THEIR WATER BILLS FROM THROUGHOUT -- IT WAS A NATIONAL COMPANY. 
          I PAID A WATER BILL BASED ON MY USAGE BUT IT WASN'T THROUGH SAWS. 
          IF I WAS SOMEBODY WHO QUALIFIED, YOU KNOW, OBVIOUSLY I DID PAY A CPS BILL INDIVIDUALLY. I THINK THAT'S A REALLY SMART WAY TO MAYBE IDENTIFY SOME FOLKS THAT COULD GET SOME RELIEF. EVEN WITH THE EXPANSION OF UPLIFT, THOSE ARE THE FOLKS THAT ARE RENTERS WHO MIGHT STILL PAY SOMETHING ARE NOT 
          GOING TO GET THAT EFFECT. >> THEY'RE NOT NECESSARILY SEEING THAT SAVINGS. 
          >> MUNGIA: I APPRECIATE THAT. REAL QUICK. 
          I KNOW THERE'S A LARGER CONVERSATION TO BE HAD WITH IMPACT FEE IN ADDITION TO OVERSIZING ISSUES FOR DEVELOPERS. I KNOW SOME FOLKS HAVE TO DO BOTH. AND I UNDERSTAND THAT THERE IS ALWAYS A COST BENEFIT ANALYSIS TO REDUCTION SOMEHOW. WHERE DO YOU SEE THAT BALANCE GOING WITH THE BOARD, CEO, AND THE THINGS THAT ARE HAPPENING IN OUR CITY? DO YOU THINK THAT IS SOMETHING THAT COULD BE BALANCED OUT IN THE FUTURE? HOW DO YOU SEE THAT WORKING OUT? 
          >> WE HAVE SOME ONGOING WORK WITH OUR BOARD CAPITAL PROJECTS COMMITTEE LOOKING AT HOW WE SPEC OUR FACILITIES. WE'RE ALSO LOOKING AT THAT WITH ANOTHER BOARD MEMBER, WORKING WITH REXA ON OUR OVERSIZING POLICY AND HOW THAT APPLIES TO OUR FACILITIES AS WELL AS WATER AND WASTEWATER. 
          AND SO WE DON'T YET HAVE RECOMMENDATIONS. WE MEET AGAIN IN LATE OCTOBER WITH REXA AND WE'LL HAVE SOME INTERNAL MEETINGS BEFORE WE GO BACK TO THEM TO SHARE WHERE WE ARE WITH THE CALCULATIONS. AS YOU CAN IMAGINE, THESE POLICIES AND PROCESSES HAVE BEEN IN PLACE FOR SOMETIME. OUR SPECIFICATIONS HAVE BEEN IN PLACE FOR SOMETIME. WE DO KNOW THAT THE ECONOMICS RELATED TO DEVELOPMENT HAS CHANGED. THIS COMMUNITY DOES NOT SEE THE BIG DEVELOPERS ANY 
          [01:30:03]
LONGER. THEY ARE NOT COMING TOGETHER AND COLLABORATING AS THEY DID IN THE '70S AND '80S WHEN THE STONE OAKS WERE BEING GENERATED IN THIS COMMUNITY. THEY'RE SMALLER DEVELOPERS AND THE FINANCING -- WE'RE IN A DIFFERENT ECONOMIC SITUATION WITH FINANCING. AND SO WE'RE TRYING TO CONSIDER ALL OF THOSE FACTORS, INCLUDING PROTECTING THE LIFE CYCLE WITH FACILITIES FOR OUR WATER AND WASTEWATER SYSTEMS SO WE CAN PROTECT OUR OVERALL RATEPAYER. IT IS QUITE A BIT BUT WE ARE COMMITTED TO WORKING THROUGH 
          THAT AND BRINGING SOME RECOMMENDATIONS FORWARD. >> MUNGIA: IT'S CERTAINLY A DELICATE BALANCE AND I HOPE YOU KNOW I WAS REASONABLE TO UNDERSTAND THAT AND NOT PUT THAT ON TO THIS INCREASE, NECESSARILY, FOR EMBEDDING THAT. 
          THERE ARE SOME FOLKS, LIKE ONE OF OUR BIGGEST DEVELOPERS IN TOWN IS RESPONSIBLE FOR BUILDING LIKE 42% OF THE NEW PIPE THAT IS HAPPENING IN THE CITY. AND SO WE DO HAVE TO CALCULATE THE AMOUNT OF CUSTOMERS WE WILL GET WITH THOSE DEVELOPMENTS. I THINK HAVING THEM DO THE OVERSIZING, YOU KNOW, DEVELOPMENT AROUND THEM IS MORE IMPORTANT MAYBE THAN THE ACTUAL FEE THAT WE'RE CHARGING THEM. I THINK THERE'S A BALANCE AND I APPRECIATE Y'ALL LOOKING INTO THAT. I KNOW IT'S A LONG-TERM 
          ISSUE. >> WE WANT TO BE FAIR TO EITHER. 
          THERE ARE SOME DEVELOPERS WHO CAN DO IT MORE EASILY AND WE HAVE TO BE EQUITABLE 
          IN THE CALCULATION. >> MUNGIA: EXACTLY. >> BUT WE ALSO NEED TO BE 
          REASONABLE. >> MUNGIA: I APPRECIATE FOR YOUR TIME AND WORK ON THIS. I KNOW IT WASN'T JUST ROBERT DOINGTHIS, IT WAS YOU AND YOUR BOARD. THANK YOU FOR BUYING INTO THOSE THINGS AND FOR HAVING A LONG-TERM STRATEGY AND VISION FOR ACCOMPLISHING THAT. 
          >> THANK YOU. >> MUNGIA: ABSOLUTELY. ROBERT, WITH A DIFFERENCE IN THE FLOOR THAT YOU HAVE AND NOT COLLECTING FROM JUNE TO -- WHEN THIS WILL START, WE'RE NOT SKIPPING OVER CRITICAL INFRASTRUCTURE ISSUES, RIGHT? WHAT COMES TO MIND, WHAT FOLKS HAVE BROUGHT UP IS DRINKING WATER ISSUES, NOT BEING ABLE TO FLUSH THE TOILET, SINKHOLES. YOU'RE NOT SKIPPING OVER INFRASTRUCTURE PROJECTS THAT IS GOING TO PREVENT THOSE ISSUES FROM HAPPENING? 
          >> PUENTE: I AGREE. IT IS VERY IMPORTANT FOR US TO FULFILL THE BASIC MISSION THAT WE HAVE. AND THAT IS TO PROVIDE WATER AND WASTEWATER SERVICES TO AN EXTENT WHERE IT'S HIGH-QUALITY WATER AND PROTECTION OF HEALTH REGARDING THE WASTEWATER. SO THE VERY BASIC THINGS ARE GOING TO BE TAKEN CARE OF IN THE NEXT FOUR-YEAR PLAN AND THE FIVE-YEAR CAPITAL PLAN. AND THE OTHER ONES THAT WE 
          CAN STRETCH OUT ARE BEING STRETCHED OUT. >> MUNGIA: I'M GLAD TO KNOW THAT NOT COLLECTING THIS PORTION WE WERE TALKING ABOUT IS NOT GOING TO RESULT 
          IN SOMETHING CATACLYSMIC FROM HAPPENING. >> PUENTE: IT IS SOMETHING THAT WE'RE GOING TO WORK WITH. I'M GOING TO MAKE SURE I AND OUR STAFF UNDERSTAND THAT AND ADJUST FOR IT THROUGH THAT FOUR-YEAR PERIOD. 
          >> MUNGIA: MOVING ON TO THE SECOND ONE -- ROBERT, YOU MIGHT BE ABLE TO HELP WITH THIS. ANY TIME SOMEBODY BRINGS UP KARST ROCKS, I HAVE TO BRING UP MY KARST ROCK I HAVE AS A SAMPLE. HOW CLOSE IS THIS DEVELOPMENT TO THE EDWARDS AQUIFER AND SOME OF THE KARST ROCK WHAT COMES TO MIND IS OBVIOUSLY THE LAST BIG PROJECT WE HAD ON THE FAR NORTHWEST SIDE WHERE THE POTENTIAL FOR SEWAGE TO LEAK INTO THE WATER WAS VERY HIGH, WHICH WAS A PROBLEM WITH THE SEPTIC SYSTEM. CAN YOU WALK ME THROUGH SOME OF THE ENVIRONMENTAL ISSUES THAT YOU'RE SEEING WITH THIS PROJECT? 
          >> PUENTE: THIS AREA IS OVER THE CONTRIBUTING ZONE, NOT THE RECHARGE ZONE. 
          THERE'S A BIG DIFFERENCE BETWEEN THE TWO. THE RECHARGE ZONE IS A DIRECT CONDUIT ALMOST TO THE AQUIFER AND IF THERE'S CONTAMINATION GOING IN IT WILL GO THROUGH THAT RECHARGE AND COME IN. HOWEVER, THESE ARE 75 HOMES, 75 SMALL HOMES. SO THERE'S NOT A LOT OF WASTE THAT GOES OUT. 
          MOST OF THE PROBLEMS ARE WHEN THERE'S A HEAVY RAINFALL -- WE MIGHT HAVE THAT TONIGHT. BUT FORTUNATELY OR UNFORTUNATELY, WHEN THERE'S A LOT OF RAIN, THERE'S ALSO A LOT OF RAIN THAT MINIMIZES THE EFFECT OF THOSE OVERFLOWS THAT ARE CAUSED. A LOT OF DILUTION OF THAT PROBLEM. 
          WE HAVE A HABIT -- WE ARE OBLIGATED TO ENFORCE ORDINANCES TO PROTECT THE AQUIFER. THIS IS IN THE ETJ WHERE OUR AUTHORITY IS MORE MINIMIZED BUT WE STILL TAKE ACTION. WE STILL NOTIFY TCEQ. TCEQ THIS ISSUE. THEY KNOW WHAT'S GOING ON. ONE GOOD THING THAT TCEQ DOES IS WHEN THEY FIND A POLLUTER OR SOMEONE THAT VIOLATES THEIR PERMIT, THEY 
          [01:35:06]
ALLOW THAT FINE -- LET'S SAY IT'S $100 -- TO BE USED TO FIX THE PROBLEM. 
          THEY DON'T JUST TAKE IT AND PUT IT IN THEIR GENERAL FUND, THEY GIVE IT BACK TO YOU TO FIX THE PROBLEM. THAT WAS DONE IN THIS CIRCUMSTANCE, I BELIEVE. 
          AND SO WE FEEL THAT THERE'S NOT A BIG ENVIRONMENTAL ISSUE THAT WE HAVE TO BE 
          WORRIED ABOUT REGARDING THIS DEVELOPMENT. >> MUNGIA: MAYOR, MAY I HAVE TWO SENTENCES? SO I THINK A SEPTIC TANK ANYWHERE IS CERTAINLY AN UNFORTUNATE ISSUE, SO I UNDERSTAND THAT CONCERN AND PLIGHT AND WHAT FOLKS ARE GOING THROUGH. ONE CONCERN IS IT NOT BEING WITHIN THE CITY LIMITS. 
          I'M STILL OPEN TO THE CONVERSATION AND REALLY HOPE MAYBE WE CAN STILL CONTINUE TO WORK WITH THE COUNTY ON SOMETHING ON THAT. WE'VE GOT FOLKS IN MY DISTRICT THAT ARE NOT GOING TO BE CONNECTED SO IT'S GOING TO BE HARD FOR ME TO TELL FOLKS WHY THIS NEIGHBORHOOD IS GOING TO GET CONNECTED AND NOT FOLKS OVER HERE. THAT'S KIND OF MY CONCERN. THANK YOU. 
          >> MAYOR JONES: THANK YOU. COUNCILMEMBER KAUR, PLEASE. >> KAUR: THANKS, MAYOR. 
          I WANT TO THANK THE SAWS TEAM FOR ALL THE WORK THAT THEY HAVE DONE OVER THE LAST FEW MONTHS TO ADDRESS SOME OF THE ISSUES THAT WE HAD. I'M REALLY EXCITED ABOUT THE UPLIFT PILOT PROGRAM. I THINK THAT ONE WORRY I REALLY HAD WAS WE WERE GOING TO PUT AN ENTIRE BLOCK OF PEOPLE ON THIS PILOT PROGRAM. 
          THAT WAS GOING TO SAVE THEM SIGNIFICANT MONEY OVER THE NEXT SIX MONTHS AND THEY WOULD GET IT RIPPED OUT BECAUSE THEY DIDN'T DO THE WORK TO ACTUALLY SUBMIT THE DOCUMENTS. GAVINO EXPLAINED TO ME THE TYPES OF MULTIPLE DOOR HANGERS, OUTREACH GOING ON, THE PHONE CALLS MADE. I ASKED FOR UPDATES ON THE TEMPLATES THAT ARE SENT TO MAKE SURE IT IS VERY CLEAR THAT YOU WILL BE REMOVED FROM THE PROGRAM IF YOU DON'T SUBMIT DOCUMENTS. I THINK THAT'S REALLY IMPORTANT TO NOT OFFER SOMETHING. IT'S OFFERING A CARROT AND, OH, JUST KIDDING. I WANT FOLKS TO GET ON THE PROGRAM BUT I WANT TO MAKE SURE IT'S NOT HURTING THEM. I APPRECIATE THE WORK THAT YOU GUYS ARE PUTTING INTO THE UPLIFT PILOT PROGRAM. ONE OF THE THINGS I HAD REQUESTED WAS SETTING A TARGET. SO THERE WASN'T REALLY A METRIC FOR HOW MUCH GROWTH WE WANTED TO SEE. I SEE THAT YOU GUYS HAVE SET A TARGET FOR 10% FOR THIS UPCOMING YEAR. I WOULD LIKE TO SEE, IF POSSIBLE -- I'M NOT GOING TO SEND YOU AN E-MAIL WITH THE REQUESTS I'M MAKING TODAY. I'M VERBALLY TELLING YOU EXACTLY AND I HAVE NOT TALKED TO ANY OF MY COLLEAGUES ABOUT THE REQUESTS I'M MAKING. ONE, I WOULD LIKE TO SEE A LIST OF -- LIKE A TARGET FOR EACH YEAR. SO FOR THE NEXT FOUR YEARS WHAT WOULD YOUR TARGET BE? I SAW A 10% INCREASE FOR NEXT YEAR IN TERMS OF ENROLLMENT. 
          WHAT WOULD IT LOOK LIKE AFTER THAT, SO WE CAN MAKE SURE WE HAVE SOME GROWTH IN IT YEAR AFTER YEAR. EVEN IF IT'S AGGRESSIVE AND WE HAVE TO UPDATE IT, AT LEAST YOU HAVE SOME KIND OF DIRECTION THERE. ON THE TOPIC THAT COUNCILMEMBER MUNGIA WAS JUST DISCUSSING AROUND THE IMPACT FEES IMPACT FEE STUDY. CAN YOU TELL ME WHAT THE TIMELINE AND THE PROCESS FOR 
          THAT STUDY LOOKS LIKE? >> PUENTE: IT STARTS IN 2027? 
          >> MONTHS. STARTS IN '27, ENDS IN '28. WE DO IT EVERY FIVE YEARS. 
          EACH ONE OF YOU HAS AN APPOINTMENT TO THAT COMMITTEE. 
          THAT COMMITTEE HAS TO BE MADE AT LEAST 60% OF INDIVIDUALS THAT REPRESENT THE DEVELOPMENT COMMUNITY, HOUSING COMMUNITY, THAT TYPE OF BUSINESS, SO THAT WE CAN REALLY GET AN UNDERSTANDING OF IT. THE SITUATION THAT YOU LET US KNOW ABOUT IS ESSENTIALLY EDUS, EQUAL DWELLING UNITS. 
          USUALLY IT'S ONE PER HOME. BUT YOU GAVE US AN EXAMPLE OF A FOUR-PLEX. 
          THOSE ISSUES WE'RE GOING TO TAKE TO THIS COMMITTEE AND HAVE THAT INPUT NECESSARY TO WHERE WE CAN HAVE THAT KIND OF DISTINCTION BETWEEN A REGULAR SUBURBAN HOME VERSUS SOMETHING INNER CITY THAT'S A DUPLEX, TRIPLEX, OR EVEN A TEN-UNIT HOUSING. 
          THOSE KINDS OF THINGS THAT YOU BROUGHT UP ARE GOING TO BE ADDRESSED IN THIS IMPACT 
          FEE STUDY. >> KAUR: OKAY. WE SHOULD BE ABLE TO GET A RESPONSE TO THAT BY THE END OF 2028 IN TERMS OF WHAT'S POSSIBLE. 
          >> PUENTE: YES. >> KAUR: THAT'S A LITTLE BIT OF A LONGER TIMELINE BUT AT LEAST YOU HAVE A PLAN AND A TIMELINE FOR IT. 
          HOPING IF THERE WAS ANY ALIGNMENT WITH THE UDC AMENDMENTS THAT WE COULD HAVE BEEN ABLE TO MAKE CHANGES FOR THE UDC BASED ON WHAT YOU ARE SAYING. 
          >> PUENTE: THE FORMAL CHANGE HAS TO GO THAT WAY BUT THERE IS SOME FLEXIBILITY WE HAVE ON HOW WE CALCULATE THOSE FORMULAS. I'LL TALK MORE AT LENGTH AND 
          GET MORE EDUCATED BY OUR STAFF. >> KAUR: I THINK YOU GUYS 
          [01:40:04]
CAN GET IN ALIGNMENT WITH JOHN AND THE TEAM TO MAKE SURE THAT WHATEVER YOU ALL ARE DOING THAT NEEDS TO GO THROUGH UDC -- OUR UDC PROCESS STARTS NEXT YEAR SO I WANT TO MAKE SURE THE TIMING IS NOT WE HAVE TO WAIT ANOTHER FOUR YEARS TO 
          UPDATE THE UDC. >> PUENTE: WE WILL. >> KAUR: ON PAGE 14 -- I APPRECIATE THE AVERAGE. WHAT I WOULD LIKE TO SEE AHEAD OF NEXT WEEK'S MEETING IS THE BOX CHART. WHAT'S THE 25%, WHAT'S THE MEDIAN, AND WHAT'S THE 75% SO WE CAN SEE WHAT THE IMPACT WOULD BE FROM SLIDE -- LIKE HOW MUCH 
          INCREASE. >> PUENTE: ON SLIDE 14? >> KAUR: YEAH. 
          LIKE, THE AVERAGE BILL -- ON SLIDE 13, THE AVERAGE BILL IS GOING UP TO 2030 IN AUDIO]. BUT SINCE THE MAJORITY OF OUR DISTRICTS ARE LOWER THAN THAT, I WANTED TO SEE -- IF THE AVERAGE IS THE MEAN, WHAT IS THE 25% VALUE? 
          WHAT IS MAYBE EVEN LESS THAN THAT. >> PUENTE: WE WILL GET 
          THAT MATH DONE FOR YOU, YES. >> KAUR: I BASICALLY WANT TO KNOW IF 73% OF MY RESIDENTS ARE LOWER THAN THAT AVERAGE, WHAT IS THE AVERAGE IN DISTRICT 1? WHAT ARE THE DISTRICT 1 RESIDENTS GOING TO BE INCREASED BY, IF THAT MAKES SENSE. OKAY. AND THEN THANK YOU FOR DOING THAT CAPITAL IMPROVEMENT STUDY. I WAS GLAD TO SEE THAT YOU ALL DID THAT. CAN WE GO TO THE SLIDE THAT SHOWS THE -- IN YOUR NOTE TO ME YOU MENTIONED WE WOULD BE ABLE TO SEE THE WHOLE STUDY. COULD YOU SEND OVER THE 
          EXECUTIVE SUMMARY AND THE STUDY TO US? >> PUENTE: YES. 
          WE DID THAT ON SEPTEMBER 2. >> KAUR: I MUST HAVE MISSED IT. 
          APOLOGIES. IF YOU COULD GO TO THE EXECUTIVE SUMMARY, I'LL GO 
          BACK AND READ IT. >> PUENTE: WE WILL. >> KAUR: THAT SLIDE IS... 
          >> PUENTE: SLIDE 10? >> KAUR: YES. THANK YOU. 
          SO ON SLIDE 10, I WOULD LOVE TO BE ABLE TO BETTER UNDERSTAND WHAT YOU ALL ARE DOING REGARDING THE OPPORTUNITIES. I'M GLAD TO SEE THAT WE'RE OUTPERFORMING SIMILAR-SITUATED UTILITIES. I'LL READ THE REPORT ABOUT WHICH UTILITIES WE WERE COMPARED TO. I'M CURIOUS ABOUT HOW YOU'RE GOING TO CREATE A PLAN TO DO BETTER AROUND GOVERNANCE. AND MOSTLY THE TWO THINGS YOU KNOW ARE COMMUNICATION AND STAKEHOLDER ENGAGEMENT. MY DISTRICT I FEEL LIKE LIVES IN ORANGE BECAUSE ALL OF HILDEBRAND, BIG NOTICE. HILDEBRAND IS GOING TO BE CLOSED FOR AN ENTIRE YEAR FROM HOWARD ALL THE WAY TO DEVINE. 
          DO NOT TAKE HILDEBRAND. IT'S GOING TO BE CLOSED 24 HOURS A DAY, 7 DAYS A WEEK FOR BASICALLY A YEAR. THAT TO BE SAID, I AM -- STAKEHOLDER ENGAGEMENT AND COMMUNICATION HAS TO BE THE NUMBER ONE THING THAT IS A PRIORITY OVER THIS NEXT YEAR AND IT'S GOING TO BE A TESTAMENT FOR ME AS TO HOW WE DO IT. 
          I DON'T THINK ART IS STILL HERE BUT IF YOU LOOK AT WE HAVE A CAPITAL PROJECT RIGHT NOW ON WOODLAWN AND ONE THING I PUSHED PUBLIC WORKS TO DO IS ON GOOGLE MAPS, MAKE SURE WE NOTIFY THAT THE STREET IS CLOSED SO AT LEAST YOUR PHONE DOESN'T ROUTE YOU THROUGH THERE. INDIVIDUAL DRIVERS WHO KNOW THEY'RE GOING TO TAKE HILDEBRAND, WE NEED MASSIVE AMOUNTS OF SIGNAGE WEST OF SAN PEDRO, AT THE HIGHWAY EXIT FOR HILDEBRAND AND 281 SO PEOPLE KNOW KEEP GOING STRAIGHT AND GET OFF ON BASSE. 
          I'M SORRY TO SAY THE MEETING THAT HAPPENED TWO WEEKS AGO FOR HILDEBRAND, I WAS NOT IMPRESSED BY. THERE WAS NO PHASES THAT WERE DESCRIBED TO THE RESIDENTS. A DETOUR PLAN WAS NOT SHOWN AND THERE WERE STAKEHOLDERS FROM EACH OF THE FOLKS THERE BUT I THINK WE COULD HAVE DONE A BETTER JOB OF OUTREACH TO SAY, HEY, THIS IS GOING TO BE A MAJOR CHANGE FOR YOU. 
          PLEASE COME TO THE MEETING. BUT THE MEETING SHOULD BE BETTER RUN. 
          I THINK THERE NEEDS TO BE A LOT MORE INFORMATION THAT'S PROVIDED TO RESIDENTS BECAUSE MY RESIDENTS ARE LIKE THIS. THEY WANT TO KNOW HOW WE'RE GOING TO PREVENT PEOPLE FROM DRIVING THROUGH THE NEIGHBORHOOD, CUTTING THROUGH THE STREETS, MAKING SURE WE'RE DETOURING AND HAVING A STRONG PLAN IN PLACE. THAT PLAN CAN'T BE EXECUTED THE WEEK BEFORE. 
          WE HAVE TO TELL PEOPLE THREE WEEKS BEFORE THERE IS CONSTRUCTION COMING. 
          THIS IS WHERE YOU NEED TO DETOUR. I JUST WANT TO REITERATE 
          [01:45:01]
THAT. I'M GOING TO SHOUT THIS OUT. WE HAD BEEN PLANNING FOR VIA FOR THREE YEARS AND I HAD BEEN SAYING WE'RE GOING TO TELL YOU. 
          WE'RE GOING TO TELL YOU. ALL OF A SUDDEN OVERNIGHT THAT ENTIRE STREET WAS BARRICADED AND I HAD NO NOTICE. I AM URGING ALL OF THE CAPITAL PROJECTS, ORGANIZATIONS IN THIS COMMUNITY TO BE BETTER. 
          AND THAT INCLUDES YOU ALL. I WOULD LOVE TO SEE WHAT YOU GUYS ARE GOING TO DO BEFORE 
          THEN ABOUT HOW WE ADDRESS SOME OF THOSE ISSUES. >> PUENTE: I HEAR YOU. 
          WE WILL HAVE MORE DETAIL ON HOW WE'RE GOING TO ADDRESS THESE FOUR ITEMS, IN PARTICULAR COMMUNICATION. IF YOU READ THE REPORT, IT TALKS SPECIFICALLY ABOUT THIS COUNCIL AND Y'ALL'S EXPECTATIONS ON THESE KINDS OF ISSUES. 
          AND THAT PART OF THE COMMUNICATION NEEDS TO IMPROVE. 
          WE'LL HAVE A REPORT FOR YOU. >> KAUR: I'M GLAD THAT WE GET TO COME BACK IN TWO YEARS BECAUSE WE ARE ACTIVELY WATCHING THESE METRICS. 
          I HAVE SAID THIS BEFORE. I KNOW THE MAYOR GETS TO SIT ON THE BOARD BUT WE DO NOT. 
          THIS IS OUR WAY OF SHOWING THAT WE ARE LOOKING OUT FOR WHAT THE RESIDENTS ARE ASKING US TO DO AND BEING GOOD OPERATORS OF A PUBLIC UTILITY. 
          THANK YOU. THANK YOU, MAYOR. >> MAYOR JONES: IN CASE IT HELPS ANYONE ELSE, I'M GOING TO ASK THE CHAIR TO COME UP AND SPEAK TO -- WE HAVE TALKED EXTENSIVELY AT THE BOARD IN TERMS OF HOW WE GOT TO THIS MOMENT. 
          AND A LOT OF THIS BEING WE'RE TALKING ABOUT A RATE INCREASE. 
          AS WAS JUST HIGHLIGHTED, A LOT OF THIS HAS TO DO WITH EXPECTATION MANAGEMENT. 
          WE HAD TALKED ABOUT HOW TO BETTER PROVIDE UPDATES TO INDIVIDUAL COUNCIL MEMBERS. 
          THAT'S NOT JUST A GAVINO THING, THAT'S CHALLENGING HOW WE THINK ABOUT IN GENERAL THIS IS DONE. I KNOW THE CHAIR HAS PUT SOME THOUGHT INTO THIS AS WELL. IF YOU WANTED TO SHARE A LITTLE BIT ABOUT WHAT THAT 
          MIGHT LOOK LIKE. THANKS. >> STAFF HAS RESPONDED TO SOME OF THE FEEDBACK THAT THEY HEARD FROM YOU. I KNOW WE HAVE SAWS STAFF NOW ASSIGNED TO COUNCIL DISTRICTS TO SORT OF BE MORE IN COMMUNICATION WITH THE COUNCIL OFFICES ABOUT PROJECTS. PHASE 2 OF OUR STUDY WILL BE CONSIDERED BY THE BOARD THIS COMING TUESDAY. AND PART OF THAT WORK INCLUDES STAKEHOLDER INTERVIEWS. IN FACT, THE SAWS BOARD JUST EXPANDED THAT COMMITTEE TO INCLUDE TWO COMMUNITY INDIVIDUALS TO ACCOMPANY THE BOARD MEMBERS THAT ARE LOOKING AT THE CAPITAL EFFICIENCY. 
          DAVID MCGEE AGREED TO COME BACK AND SERVE ON THAT COMMITTEE, AS WELL AS PAUL FOSTER, WHO OWNS FOSTER CM GROUP, WHO WILL BE ASSISTING THE BOARD MAKING THOSE IMPROVEMENTS. COUNCILWOMAN KAUR IS RIGHT. IT IS ABOUT ANTICIPATING THE PROJECTS AND HAVING A PLAN AND WORKING WITH YOUR COMMUNITY AND USING TECHNOLOGY. THE REFERENCE SHE MADE TO CALLING GOOGLE MAPS AND MAKING SURE -- OR THE OTHER MAP COMPANY. MAKING SURE ALL OF THOSE MAPS ARE UPDATED SO WHEN YOU'RE USING YOUR PHONE TO GET AROUND, YOU HAVE ALTERNATIVE OPTIONS. IT'S JUST ANTICIPATING AND THINKING ABOUT CAPITAL PROJECTS VERY DIFFERENTLY AND MAKING SURE THAT PEOPLE CAN GET AROUND AND WE ARE IN COORDINATION WITH ALL OF THE OTHER ENTITIES. THAT, FORTUNATELY FOR US, ARE EXPANDING AND BUILDING INFRASTRUCTURE IN SAN ANTONIO. 
          >> MAYOR JONES: THANK YOU, CHAIR. COUNCILMEMBER GALVAN, 
          PLEASE. >> GALVAN: TO YOUR TEAMS WHO HAVE DONE A LOT OF EXTENSIVE WORK OVER THE SUMMER -- THIS IS A VERY NEEDED RATE REQUEST . 
          WE KNOW OUR SYSTEM, OUR OWN CITY IS GROWING AND WE NEED TO MAKE SURE WE'RE MAINTAINING IT. I WANT TO THANK YOU AND YOUR TEAM FOR BEING COMMUNICATIVE OVER THE SUMMER AS WELL [INDISCERNIBLE] AND HAVING A FULL TEAM OF NINE PEOPLE COMING TO OUR COMMUNITY MEETING. IT WAS HELPFUL TO GO THROUGH ALL THE DETAILS AND SEE WHEN THAT PROJECT WAS GOING TO WRAP UP. 
          THERE'S STILL SOME QUESTIONS FROM RESIDENTS, NAMELY ON ONE ISSUE AND IT'S RELATED TO DATA CENTERS. HOW SAWS IS WORKING TO ADJUST THOSE PROBLEMS. I ASKED THOSE QUESTIONS AND Y'ALL GAVE ME GREAT ANSWERS. UNDERSTANDING MOST OF THE DATA CENTERS QUESTIONS THAT ARE STILL LINGERING WHEN WE TALK ABOUT A RATE REQUEST, THAT DISTRICT 6 RESIDENTS HAVE BEEN ASKING ME ABOUT RELATED TO DATA CENTERS. 
          CAN YOU TALK TO ME WHAT WAS DONE OVER THE SUMMER TO ADDRESS DATA CENTER GROWTH? 
          IN CHANGES SAWS IS REVIEWING OR LOOKING TO IMPLEMENT? >> PUENTE: WE HAVE BROUGHT TO OUR BOARD, AT LEAST TWICE ALREADY, THE DATA CENTER ISSUE. 
          GETTING FEEDBACK FROM THEM. LETTING THEM KNOW WHAT SOME OF Y'ALL'S QUESTIONS HAVE BEEN, WHAT WE CAN DO. WHAT WE NEED HELP WITH, EITHER STATE LAW OR CITY ORDINANCE. AND SO WHERE WE ARE RIGHT NOW IS AN UNDERSTANDING THAT WE CAN CHANGE CERTAIN THINGS ON OUR END. AND THAT IS OUR UTILITY 
          [01:50:03]
SERVICE REGULATIONS. ESSENTIALLY, IF SOMEBODY IS IN OUR SERVICE AREA, WE HAVE TO PROVIDE THEM WATER. BUT IT DOESN'T HAVE TO BE POTABLE WATER. 
          AND SO WE WOULD ESSENTIALLY -- IF THEY WANT WATER, THEY REALLY -- DATA CENTERS HAVE TO TAKE WASTEWATER, RECYCLED WATER. THAT WILL ALLOW US TO MAKE SURE THAT THAT ISSUE IS TAKEN CARE OF IN THAT WAY AS FAR AS THAT PARTICULAR WAY OF THEM DOING THEIR BUSINESS. AND SO THAT'S A UTILITY SERVICE REGULATION WE CAN DO. USUALLY, WE DO THEM IN A PLANNED WAY BUT OBVIOUSLY DATA CENTERS ARE NOT WAITING FOR ANYBODY. 
          THIS COMING TUESDAY OUR BOARD IS GOING TO HEAR AGAIN SOME OF OUR RECOMMENDATIONS ABOUT THE DATA CENTER ISSUE. SO I BELIEVE WE'RE GOING TO GET THE RIGHT KIND OF FEEDBACK FROM OUR BOARD TO THEN BE ABLE TO DO A PUBLIC PRESENTATION FOR THE BOARD TO CONSIDER. AND THEN ULTIMATELY HAVE CITIZEN INPUT BY EITHER PRO OR AGAINST, WHOEVER WANTS TO COME AND SAY THEIR PIECE. AND ULTIMATELY A DECISION BY 
          THE BOARD BY DECEMBER. >> GALVAN: MAKING THAT LIKELY A REQUEST TO HAVE 
          THEM -- UTILIZE RECYCLED WATER? >> PUENTE: UTILIZE RECYCLED WATER. DONOVAN, ANYTHING ELSE WE'RE GOING TO PUT ON THE AGENDA? 
          >> YES. WE WILL COME TO OUR BOARD IN DECEMBER. 
          ASSUMING THE POLICY DIRECTION IS RECEIVED FROM THE BOARD, THAT'S THE TIME-FRAME THAT WE WOULD GO TO THEM FOR ACTION. AGAIN, SOME OF THE ACTION, AS MR. PUENTE STATED, CAN BE DONE FROM A STAFF LEVEL. SOME OF IT WOULD FILTER UP TO CITY COUNCIL TO THERE WOULD BE A NUMBER OF VARIOUS PROPOSALS THAT WILL COME THROUGH VARIOUS PROCESSES. BUT THAT WOULD BE THE EARLIEST IS PROBABLY NOVEMBER BRIEFING, PUBLIC BRIEFING, AND FORWARD SOME PROPOSALS BY DECEMBER. 
          THAT WOULD BE UP TO OUR BOARD TO DECIDE. >> GALVAN: THANK YOU SO MUCH. A LITTLE FURTHER ON THAT, I GUESS. 
          SOME OF THE LONG-TERM SOLUTIONS RELATED TO THE RATE. 
          I KNOW WE TALKED ABOUT THAT TODAY, 2027, STARTING THAT PROCESS IN 2028 AND 
          FINISHING IT UP. WHEN WOULD THAT BE ADOPTED? >> PUENTE: A RATE 
          RESTRUCTURING? >> GALVAN: OR RATE REVIEW BASED ON THE STUDY. 
          >> PUENTE: AGAIN, THAT IS SOMETHING THAT CAN BE DONE ON OUR END, TO SOME EXTENT, AND IT TAKES FURTHER COUNCIL ACTION. RIGHT NOW WE DO NOT CHARGE IMPACT FEES IF YOU USE OUR RECYCLED WATER SYSTEM. THAT WAS BY PURPOSE AND THAT IS TO FULLY DEVELOP OUR RECYCLED WATER SYSTEM. WE WANTED PEOPLE THAT WERE GOING TO USE RECYCLED TO USE IT AND AS AN INCENTIVE IT WOULD DRIVE THEM BECAUSE OF COST. I THINK WE'RE THERE NOW TO WHERE IT'S A MATURE SYSTEM. 
          THE RECYCLED WATER SYSTEM. SO THE IMPACT FEE AGAIN IS AN ISSUE THAT STARTS IN 2027-28. THERE'S A BRIDGE THAT WE CAN USE NOW THROUGH THE PROCESS I JUST MENTIONED, BY BRINGING IT TO OUR BOARD FOR CONSIDERATION. 
          AND THEN A PUBLIC HEARING AND THEN THE VOTE. AND THAT IS ESSENTIALLY AN IMPACT FEE BY AGREEMENT. IF YOU WANT THIS SERVICE, YOU HAVE TO PAY THIS FEE. 
          AND THAT THE BRIDGE THAT WE DON'T HAVE TO WAIT UNTIL 2028. 
          >> GALVAN: THAT WOULD ALSO BE IN DECEMBER, POTENTIALLY? >> PUENTE: YES. 
          >> GALVAN: GOT IT. WE TALKED ABOUT THE RECYCLED WATER MATURITY AND THE SYSTEM ITSELF. I KNOW LAST TIME WE SPOKE THERE WAS A BIG COMPONENT NOT CONNECTED FROM THE EAST AND WEST PORTIONS OF IT. I KNOW THERE'S A MASTER PLAN COMMISSIONED TO REVIEW HOW WE CAN LOOK AT THAT. IS THERE ANY ANTICIPATION -- OR HAS THERE BEEN ANY ENGAGEMENT WITH ANY DATA CENTER COMPANIES ON HOW THEY CAN INVEST IN THAT SYSTEM AS WELL TO ENSURE THEY ARE RECEIVING RELIABILITY 
          RESOURCES. >> PUENTE: THE NORTHERN END WE HAVE A SYSTEM COMING OUT OF OUR WASTEWATER TREATMENT PLANT ON THE FAR SOUTH AND THEY GO TOWARDS THE NORTH. AT THE VERY NORTH THEY DO NOT CONNECT. IDEALLY THEY WOULD CONNECT TO CREATE REDUNDANCY ALL THE WAY AROUND. AND THEN ADDITIONAL PUMP STATIONS BY THE TREATMENT PLANTS TO BE ABLE TO MOVE THAT WATER. THAT'S GOING TO BE PART OF THE MASTER PLAN. IT'S SOMETHING WE HAVE BEEN WANTING FOR A LONG TIME. 
          THERE'S ONLY A CERTAIN AMOUNT OF CUSTOMERS THAT USE RECYCLED WATER SO YOUR RESIDENTS DON'T HAVE TO PAY FOR THAT. WE'RE PLANNING TO DO THAT. 
          SOME OF THESE IMPACT FEES WOULD BE USED FOR THAT PURPOSE TO CONNECT THE TWO 
          AT THE NORTH AND BIGGER PUMP STATIONS ON THE SOUTH. >> GALVAN: THAT'S HELPFUL. 
          THANK YOU SO MUCH. THE OTHER QUESTIONS I HAD WERE RELATED TO CONSERVATION 
          [01:55:05]
IS A KEY ISSUE. IT'S A BIG PASSION AND SOURCE OF PRIDE THAT THEY CONTINUE TO USE SOME OF THE OLDER RAIN BARRELS. DO YOU HAVE THE BREAKDOWN OF THE TOTAL SYSTEM USAGE BETWEEN RESIDENTIAL AND GENERAL CUSTOMER CLASS? 
          >> PUENTE: AS FAR AS HOW MUCH WATER EACH ONE USES? >> GALVAN: RIGHT. 
          IN PERCENTAGES OR GALLONS. >> IN 2025, OVERALL WE USED ABOUT 70 BILLION GALLONS. 
          RIGHT NOW IT'S A 45% FROM COMMERCIAL CUSTOMERS. 55% FOR RESIDENTIAL CUSTOMERS. IT JUST DEPENDS ON THE YEAR BUT IT'S VERY CLE CLOSE TO 
          50/50. >> GALVAN: WHEN I WAS LOOKING AT SOME OF THE INFORMATION YOU PROVIDED TO US RECENTLY RELATED TO THE QUESTIONS WE HAVE BEEN ASKING. BASED ON THE CONSERVATION PROGRAMS Y'ALL HAVE LISTED SO FAR, IT SEEMS THAT RESIDENTIAL CUSTOMERS HAVE BEEN UTILIZING IT PRETTY WELL. OVER 165 MILLION GALLONS WORTH OF WATER BEING SAVED THE LAST COUPLE OF YEARS ALONE FROM RESIDENTIAL CUSTOMERS. 
          BUT I SAW 17 MILLION, GENERAL CLASS CUSTOMERS. CLEARLY A BIG DIFFERENCE HERE.& TALK TO ME ABOUT WHAT NEXT STEPS ARE GOING TO BE TAKEN TO ENSURE THAT COMMERCIAL OR GENERAL CLASS ARE ENGAGING MORE THOROUGHLY. 
          >> PUENTE: THE UNIQUE THING ABOUT COMMERCIAL CUSTOMERS IS THEY ARE COMMERCIAL CUSTOMERS FOR A PURPOSE. THEY WANT TO MAKE A PROFIT. 
          THE LESS EXPENSE, THEY ARE ATTRACTED TO IT. WE HAVE PROGRAMS CUSTOMED MADE TO THAT INDUSTRY. WHETHER IT'S A DENTIST OFFICE, COCA-COLA, OR H-E-B. 
          TO ACTUALLY DEVELOP THESE PROGRAMS THAT WOULD HELP THAT INDIVIDUAL BUSINESS. 
          THERE ARE A LOT OF PROGRAMS. WE HAVE A CERTAIN RATE OF RETURN WHERE -- AND THEY ALSO WANT TO BE ABLE TO KNOW THAT WITHIN A CERTAIN AMOUNT OF YEARS, USUALLY FIVE, THAT THEY WILL SEE A POSITIVE EFFECT. WE PAY INTO THAT IMPROVEMENT THAT THEY'RE GOING TO MAKE TO THAT SYSTEM, TO THEIR WAY OF DOING BUSINESS TO ALLOW THEM TO USE LESS WATER. WE PAY IN, THEY PAY IN. WE GET THE BENEFIT OF THEM USING LESS WATER, ACTUALLY BUYING LESS OF OUR PRODUCT, THAT'S OUR BUSINESS. 
          BUT WE UNDERSTAND THAT IN THE LONG RUN THE MORE YOU CAN SERVE, THE MORE YOU DON'T HAVE TO HAVE ANOTHER VERY BILLION DOLLAR WATER PROJECT DOWN THE LINE. 
          >> GALVAN: I THINK IT'S CRUCIAL IN THINKING ABOUT -- A BETTER UNDERSTANDING OF WHAT THAT LONG-TERM LOOKS LIKE. IT'S ALL CUSTOMER BASED SO IT'S NOT A ONE-SIZE-FITS-ALL PROGRAM TO CREATE. SOMETHING I ASKED BEFORE WAS WHAT ARE SOME OF THE GOALS SAWS CAN SET TO GET MORE GENERAL CLASS CUSTOMERS TO CONSERVE ON WATER AS RESIDENTIAL CUSTOMERS WHO ARE DOING IT AS A HIGHER 
          RATE IN TERMS OF GALLONS OF WATER. >> PUENTE: MARTHA, CAN YOU 
          HELP ME WITH THAT? >> YEAH. WE CAN OUTLINE WHAT SOME OF THOSE GOALS ARE. WE HAVE RECENTLY HIRED A MANAGER OVER OUR COMMERCIAL CONSERVATION PROGRAMS. WE ARE EXPANDING THOSE PROGRAMS BUT A LOT OF THEM ARE CUSTOM. BUT WE CAN OUTLINE WHAT SOME OF THOSE GOALS ARE. 
          >> GALVAN: THANK YOU SO MUCH AND THANK YOU FOR THE PRESENTATION TODAY. 
          >> PUENTE: 
          COUNCILMEMBER WHYTE, PLEASE. >> WHYTE: STARTING WITH THE VILLAS AT TIMBERWOOD, I WOULD LIKE TO FIND A WAY TO HELP THESE FOLKS. THEY ARE GOING TO BE RESIDENTS OF SAN ANTONIO IN THE NEAR FUTURE. WE HAVE THE AQUIFER TO PROTECT AS WELL AND SO RATHER THAN JUST SAYING THIS SHOULD ALL BE ON THE COUNTY, I THINK WE NEED TO LOOK AT THE BIGGER PICTURE HERE AND SEE WHAT WE CAN DO TO HELP. 
          ON THE SAWS RATE PLAN, I APPRECIATE ROBERT'S EFFORTS OVER THE PAST FEW MONTHS. 
          I THINK THE DIALOGUE SINCE JUNE HAS BEEN REALLY, REALLY GOOD. 
          CLEARLY, ROBERT AND SAWS ARE TAKING COUNCIL'S CONCERNS INTO CONSIDERATION. 
          WE'RE AT A TIME WHERE COST OF LIVING IS SO HIGH. RESIDENTS ARE FEELING THE BURDEN OF INCREASED COST IN SO MANY DIFFERENT ASPECTS OF LIFE. 
          TO THINK AND TO CONSIDER, YOU KNOW, FOR THIS COUNCIL TO CONSIDER RAISING RATES ON THEM, EVERYBODY TAKES THAT EXTREMELY SERIOUSLY AND WE WANT THE LOWEST RATE POSSIBLE FOR THESE RESIDENTS WITH SAWS BEING ABLE TO STILL DO WHAT THEY NEED TO DO. THAT'S WHAT I'M GOING TO KEEP PUSHING FOR. 
          I APPRECIATE CONTINUED DIALOGUE WITH YOU, ROBERT AND YOUR TEAM AND MEMBERS OF THE BOARD. I GUESS WE'LL SEE WHERE WE LAND NEXT WEEK. 
          [02:00:03]
          >> PUENTE: I APPRECIATE IT, COUNCILMAN WHYTE AND I APPRECIATE THE OPPORTUNITY TO BE MEETING WITH YOU AT DIFFERENT TIMES TO LET YOU KNOW THAT WE HAVE BEEN TRYING TO PUSH THOSE NUMBERS AS FAR DOWN AS POSSIBLE. EVEN BEFORE WE GOT HERE, I THINK YOUR STAFF HEARD THOSE COMMENTS BECAUSE THEY PUSHED US AS FAR DOWN AS WE THOUGHT WE COULD GO AND ERIK PUSHED IT EVEN FURTHER DOWN. YOU SAW THAT ON SLIDE 4 OF TROY'S PRESENTATION. THANK YOU, ERIK. BUT ULTIMATELY, Y'ALL MAKE 
          THE DECISION AS TO WHAT THAT NUMBER SHOULD BE. >> WHYTE: YEAH. 
          AND I THINK STAFF DID A GOOD JOB OF FINDING MORE WAYS TO PUSH THOSE NUMBERS DOWN. 
          BUT, YOU KNOW, THERE'S 11 PEOPLE ELECTED BY THE CITIZENS OF SAN ANTONIO TO WATCH OVER THEIR MONEY AND I THINK IT'S INCUMBENT UPON ALL OF US TO DO WHAT WE CAN TO CONTINUE TO TRY AND KEEP MORE OF THEIR MONEY IN THEIR POCKETS. 
          SO THAT'S WHY I'VE BEEN SORT OF NOISY ON THIS ISSUE AND I APPRECIATE MY COLLEAGUES, THEIR EFFORTS AS WELL TO TAKE CARE OF THE CITIZENS' POCKETBOOK. 
          AGAIN, WE'LL KEEP DOING IT. >> PUENTE: WE HEAR YOU. THANK YOU. 
          >> MAYOR JONES: IN CASE -- WOULD ANYONE ELSE LIKE TO SPEAK ON THE FIRST ROUND? OKAY. IN CASE IT INFORMS YOUR COMMENTS IN THE SECOND ROUND, ERIK JUST CONFIRMED THAT FOR THOSE COUNCIL MEMBERS THAT WOULD LIKE TO, YOU CAN USE YOUR CARRY FORWARD ACCOUNTS TO COVER THIS EXPENSE, IF YOU WOULD 
          LIKE TO DO THAT. COUNCILMEMBER SPEARS. >> SPEARS: THANKS, MAYOR. 
          I JUST WANTED TO FOLLOW UP WITH A COUPLE OF THINGS. LOOKING AT THIS AS THOUGH IT'S THE COUNTY VERSUS THE CITY, WHEN REALLY IT'S MORE ABOUT US BEING -- THIS IS A MUNICIPALLY-OWNED UTILITY THAT SERVES MANY AREAS OF THE CCN MAP, COVERAGE AREA. 
          WE HAVE A DUTY TO ANYONE THAT SAWS HAS TO COVER IN THE CCN. 
          AND THIS AREA IS COVERED BY THE CCN MAP BY SAWS. I WANT TO REITERATE THIS AREA DOES FEED INTO MUSTANG CREEK AND THERE ARE LETTERS FROM BEXAR COUNTY ENVIRONMENTAL SERVICES THAT HELPED THEM TO EVEN QUALIFY FOR THE ARPA FUNDS THE FIRST TIME, STATING THIS IS A PUBLIC HEALTH EMERGENCY. AND COUNCILWOMAN VIAGRAN'S QUESTIONS I WANTED TO ADDRESS. IT WAS IN 2019 WHEN THIS STARTED FAILING AND THE DEVELOPERS IN THE COUNTY DON'T HAVE ANY OF THE SAME REQUIREMENTS THAT WE DO IN THE CITY. IT'S VERY DIFFERENT SET OF RULES AND THAT'S WHY WE DON'T SEE AS MUCH RESTRICTION. 
          THAT LIKELY WON'T CHANGE. THEY CANNOT DISCLOSE THE SETTLEMENT AMOUNT BECAUSE THEY ARE BANNED BY THE SETTLEMENT FROM DISCLOSING THAT AMOUNT BUT THEY ARE ABLE TO ASCERTAIN THAT 100% OF THE DESIGN AND CONSTRUCTION IMPROVEMENTS AND EASEMENTS ARE WHAT THOSE FUNDS ARE BEING USED FOR. THEY ARE PUTTING UP A SIGNIFICANT AMOUNT OF MONEY. THIS IS PART OF THE PROBLEM. IF YOU'RE IN SAWS' COVERAGE AREA AND YOU HAVE NO REPRESENTATION ON CITY COUNCIL, THEN HOW DO YOU GET ANY OF YOUR PROBLEMS SOLVED? IN THIS PARTICULAR INSTANCE WHEN YOU ASKED ABOUT THE ANNEXATION, ANDY, I THINK THAT THEY'RE PART OF THE BIG ANNEXATION AGREEMENT WITH 
          ALL OF TIMBERWOOD, RIGHT? >> WALSH: YES, MA'AM, THEY ARE. 
          >> SPEARS: I DON'T KNOW HOW YOU WOULD PARTITION THAT OUT A PORTION AND STILL 
          COMPLY. >> WALSH: A NEIGHBORHOOD -- ANY PART OF TOWN CAN PETITION THE CITY FOR ANNEXATION. AND SO, YOU KNOW, ALTHOUGH THEY ARE PART OF A LARGER AREA THAT HAS A NON-ANNEXATION AGREEMENT, IT WOULD BE POSSIBLE, I BELIEVE, FOR THEM TO SEPARATE THEMSELVES AND PETITION. THAT'S MORE WORK WE NEED TO DO OBVIOUSLY WITH THEM AND 
          THE CITY ATTORNEY'S OFFICE. >> SEGOVIA: THAT'S CORRECT, COUNCILWOMAN. 
          WE'LL GET YOU THE DETAILS AS SOON AS WE CAN ON WHAT THAT WOULD LOOK LIKE IN TERMS OF THEM, THAT NEIGHBORHOOD, ESSENTIALLY ASKING THE CITY TO ANNEX THEM. 
          >> SPEARS: YEAH. I'M INTERESTED IN SEEING HOW TO DO THAT. 
          BECAUSE THAT WOULD BE KIND OF LIKE AN ISLAND. ROBERT, WHEN WAS THE LAST TIME YOU TALKED WITH THEM ABOUT THAT FIVE-YEAR PROPOSAL? 
          >> PUENTE: I HAVE NOT. MY STAFF HAS. I THINK IT'S BEEN SINCE YOU'VE BEEN ON COUNCIL. THE LAST 12, 18 MONTHS, I BELIEVE. 
          [02:05:04]
          >> SPEARS: THAT'S NOT EXACTLY WHAT I HAVE BEEN HEARING. 
          I WAS HEARING BEFORE THEY EVEN HAD LITIGATION. >> PUENTE: IF IT WAS BEFORE THAT OFFER, IT'S ALWAYS BEEN OUR POLICY, SO THEY CAN TAKE ADVANTAGE OF 
          IT NOW, IF THEY WOULD LIKE. >> SPEARS: WHAT I'M CONSIDERING THEN, POTENTIALLY, IS THE PROJECT COULD BE CONSTRUCTED AND FINISHED OUT AND THEY COULD CONNECT WITH AN UNDERSTANDING THAT ONCE THE NEW POLICY IS IN EFFECT AND THEY COULD POTENTIALLY QUALIFY UNDER THE NEW POLICY, THERE COULD BE A REDUCTION. IF NOT -- OR THE FULL WAIVER. 
          IF NOT, THEN GET SET UP ON A PAYMENT PLAN AT THAT POINT. >> PUENTE: THEY CAN ENTER INTO THAT POLICY PLAN THAT WE HAVE AT ANY TIME THAT THEY WANT. 
          >> SPEARS: WELL, WHAT I'M SAYING IS IF YOU DO THE NEW POLICY THAT WE'VE BEEN DISCUSSING, THIS NEW ONE WITH THE BOARD THAT YOU'RE WANTING TO PUT TOGETHER. 
          THEY COULD POTENTIALLY APPLY UNDER THE NEW POLICY THAT YOU'RE TRYING TO PUT TOGETHER. SHOULD THEY EITHER GET A REDUCTION OR A FULL WAIVER AT THAT POINT? OR IF NOT, THEN ENTER INTO THE FIVE YEAR. 
          >> PUENTE: A REDUCTION -- GO AHEAD. >> I THINK ROBERT HAS MENTIONED BEFORE THAT WE CAN'T PROVIDE CREDIT TO SOMEONE. 
          SO YOU CAN'T FLOAT THAT AGREEMENT FOR SOME PERIOD OF TIME AND THEN DETERMINE IF IT'S GOING TO TAKE EFFECT. THEY WOULD HAVE TO ENTER INTO THE AGREEMENT AND START PAYING UNDER THAT PAYMENT AGREEMENT. WE COULDN'T JUST FLOAT THAT AGREEMENT FOR SOME PERIOD OF TIME. THAT WOULD VIOLATE STATE LAW 
          WHERE WE PROVIDE CREDIT TO SOMEONE. >> MAYOR JONES: ANY OTHER QUESTIONS ON THE SECOND ROUND FROM MY COLLEAGUES? HAVE THEY LOGGED IN? 
          COUNCILMEMBER MCKEE-RODRIGUEZ, PLEASE. >> MCKEE-RODRIGUEZ: MY COMPUTER'S NOT CONNECTED TO THE THING ANYMORE, EVEN THOUGH I PLUGGED IT BACK IN. 
          I WILL FOCUS ON THE DISTRICT 9 CONCERN OR THE COUNTY ONE. SOMETHING THAT WAS SAID JUST NOW THAT WAS CONCERNING IS THE IDEA THAT BECAUSE INDIVIDUALS ARE NOT REPRESENTED BY A CITY COUNCILMEMBER THAT THEY HAVE NO REPRESENTATION. 
          IS THERE SAWS BOARD REPRESENTATION FOR THIS AREA? 
          >> PUENTE: OH, YES. OUR WHOLE SERVICE AREA WE HAVE BOARD MEMBERS. 
          THEY ACTUALLY HAVE TWO BOARD MEMBERS THAT REPRESENT THEM. THE NORTH SIDE BOARD MEMBER THAT REPRESENTS ALL OF THE NORTH SIDE. AND THEN GREG MANN. 
          JALEN AND GREG MANN REPRESENT THAT AREA. >> MCKEE-RODRIGUEZ: SAY THEY HAVE ANY GENERAL CONCERN WITH SAWS, THERE'S A MAIN BREAK OR SOME SORT OF CONCERN THAT REQUIRES MAINTENANCE, YOU ARE GOING TO SERVE THEM, CORRECT? 
          >> PUENTE: DEFINITELY, YES. WE GET PLENTY OF CALLS FROM OUR BOARD MEMBERS BECAUSE I THINK SOMEBODY SAID AT THE GROCERY STORE -- EVERYBODY GOES TO THE GROCERY STORE AND THEIR NEIGHBORS KNOW THAT THEY'RE ON THE BOARD. 
          >> MCKEE-RODRIGUEZ: AND SO I GUESS THE POINT I'M GETTING AT IS THE SERVICE HERE WE'RE TALKING ABOUT THE SERVICE WOULD BE CITY COUNCIL WAIVING A FEE, WHICH IS NOT A SERVICE THE MISCONCEPTION OR STATEMENT THAT THERE'S INDIVIDUALS WHO ARE PAYING SAWS AND NOT BEING REPRESENTED OR NOT BEING SERVICED. 
          JUST WANTED TO CLEAR THAT. ARE THERE ANY -- I KNOW THIS HAS BEEN A PRETTY LENGTHY DISCUSSION ABOUT THIS. HAS THERE BEEN ANY IDENTIFIED REASON WHY THE 
          COUNTY CANNOT PAY FOR THE REST? >> PUENTE: SO THE FACTS THAT I DO KNOW IS REBECA-CLAY FLORES HAD A SIMILAR PROBLEM. 
          I TOLD HER SHE COULD GET IMPACT FEES WAIVED BY THE CITY AND SHE CHOSE TO GO THE ROUTE OF TRYING TO GET AS MUCH MONEY FROM THE COUNTY TO FIX HER PROBLEM. 
          WHAT WE DID HELP THAT NEIGHBORHOOD WITH -- ALTHOUGH THEY PAID FOR EVERYTHING -- WE PROVIDED THE PROJECT MANAGEMENT OF THAT PROJECT. 
          BECAUSE OBVIOUSLY WE'RE GOING TO BE SERVICING THAT AREA AND THAT INFRASTRUCTURE IS ULTIMATELY GOING TO BE OURS. AND SO WE WORKED WITH HER, KIND OF GUIDED HER THROUGH THE PROCESS AND SHE WAS ABLE TO GET ENOUGH MONEY TO PAY FOR IMPACT FEES. SOME INDIVIDUALS CHOSE NOT TO BE IN THE PROGRAM AND SO THEY WERE VOLUNTARILY NOT IN THAT PROGRAM. BUT SHE WAS ABLE TO DO IT 
          WITH ENOUGH COUNTY FUNDING. >> MCKEE-RODRIGUEZ: THANK YOU. 
          WHERE DO THE PAYMENTS FOR US. TO OUR GENERAL REVENUE. WE ARE NOT ALLOWED TO WAIVE 
          [02:10:04]
THEM, ONLY COUNCIL CAN WAIVE THEM. WE SET THE IMPACT FEES -- THE COUNCIL SETS THE IMPACT FEES ONCE EVERY FIVE YEARS AS TO HOW MUCH THEY ARE. 
          THEY ARE DIFFERENT, DEPENDING ON THE GEOGRAPHIC AREA THAT THE DEVELOPMENT IS 
          BEING BUILT. >> MCKEE-RODRIGUEZ: MAYOR, WHEN YOU MENTIONED THAT CARRY FORWARD COULD BE USED TO COVER THIS, THIS IS WHAT YOU WERE TALKING ABOUT? MY UNDERSTANDING -- AND THIS MAY BE SOMETHING THAT COUNCILMEMBER SPEARS MIGHT NEED TO LOOK INTO. I DON'T KNOW HOW ACCURATE IT WAS. 
          WHEN WE WERE GOING THROUGH THE CARRY FORWARDS AHEAD OF THE BUDGET, DISTRICT 9 HAS 
          ENOUGH TO COVER -- IT WAS 430? >> PUENTE: 414. 
          >> MCKEE-RODRIGUEZ: THEN LEAVE A SIZABLE AMOUNT . COMPARABLE TO DISTRICT 3 OR DISTRICT 2 CARRY FORWARD. SO I WANTED TO GIVE THAT AS AN OPTION. 
          I WOULD NOT WANT TO CHANGE THE POLICY NOW TO PREEMPT THE PAYMENT OF THESE FEES. 
          I WOULD RATHER MOVE FORWARD WITH THE POLICY AS SET. THEY PAY THE FEES AND WE CAN DISCUSS THE PUBLIC HEALTH IMPLICATIONS OF SUCH A POLICY AND WE CAN AMEND THE STRUCTURE, ALL OF THAT AFTER THE FACT. ALTERNATIVE, I THINK IF THEY WERE DOWN TO ANNEX EARLY, THAT WOULD BE SOMETHING THAT I MIGHT BE MORE WILLING TO CONSIDER WAIVING FEES. BUT TO GO SEVERAL YEARS WITHOUT PAYING ANY PROPERTY TAXES BUT THEN TO SEEK ESSENTIALLY 400-SOME ODD THOUSAND DOLLARS FROM THE CITY AND OUR PARTNERS, THAT DOESN'T JIVE WELL WITH ME. SO I THINK THAT'S OPTIONS AND DISCUSSIONS I WOULD BE WILLING TO HAVE AT THAT POINT. 
          THANK YOU. >> MAYOR JONES: THANK YOU. COUNCILMEMBER KAUR, PLEASE. 
          >> KAUR: I JUST WANTED TO MAKE ONE FINAL POINT FOR THE SAWS RATE DISCUSSION FOR NEXT WEEK THAT YOU ALL MENTIONED THAT YOU DON'T DO -- YOU'RE NOT DOING AN AUDIT FOR LIKE THE PROJECTS THAT I HAD MENTIONED THE LAST TIME I SPOKE THAT CAME BACK THAT WERE NOT SUFFICIENT. BECAUSE THE THIRD-PARTY AUDIT I REQUESTED. THE NOTE WAS SAWS ROUTINELY HAS AUDITS AND MASTER PLANS FOR AREAS THAT REQUIRE LONG-TERM CAPITAL INVESTMENT. 
          I WANTED TO KNOW HOW MANY OF YOUR PROJECTS THAT YOU'VE DONE HAVE HAD CONTRACTORS HAD TO GO BACK AND FIX. BECAUSE THEY WERE NOT DONE TO THE STANDARD. 
          WHAT I WAS GOING TO SAY IS IF YOU COULD PROVIDE ME WITH A LIST OF EVEN JUST IN THE LAST COUPLE OF YEARS HOW MANY PROJECTS -- AND IT'S NOT JUST YOU GUYS. 
          WE HAVE AN ISSUE LIKE THIS IN D1 AND PUBLIC WORKS PROJECTS TOO. 
          CONTRACTORS DON'T LIVE UP TO THEIR STANDARDS SOMETIMES. HOW MANY OF THEM DID THEY HAVE TO GO BACK AND REDO. WHAT I WILL ALSO DO IS GIVE YOU THE LIST THAT I WROTE -- LIKE, I LISTED A SET OF PROJECTS THAT WE HAD GOTTEN COMPLAINTS ABOUT IN TERMS OF HOW THEY WERE COMPLETED, SO I CAN GIVE YOU THAT LIST THAT YOU CAN TELL ME NOTES 
          ON WHAT HAPPENED FOR EACH OF THOSE. >> PUENTE: WE WILL START 
          GETTING OUR INFORMATION TOGETHER. >> KAUR: OH, NO. 
          I SAID IT. I OWE YOU $50. I'LL PROVIDE THAT FOR YOU 
          LATER. THANKS. >> MAYOR JONES: WOULD ANYONE ELSE LIKE TO SPEAK ON THIS ITEM? COUNCILMEMBER MEZA GONZALEZ. 
          >> GONZALEZ: THE CAPITAL IMPROVEMENT COMMITTEE, COULD YOU EXPLAIN THAT AGAIN? 
          >> PUENTE: OUR BOARD CREATED A CAPITAL IMPROVEMENT COMMITTEE, SINCE WE HAVE SUCH A BIG CAPITAL PROJECT. IT WAS MADE UP OF FOUR BOARD MEMBERS. JALEN HAS ADDED TWO OTHER INDIVIDUALS THAT ARE NOT BOARD MEMBERS. ONE OF THEM IS DAVID MCGEE, WHO USED TO BE ON OUR BOARD. AND ONE IS PAUL FOSTER WHO HAS A CONSTRUCTION ENGINEERING BACKGROUND. THEY WILL OVERSEE WHAT WE ARE DOING AS FAR AS THESE CAPITAL PROJECTS. EVERYTHING FROM PROCUREMENT METHODS TO CHANGE ORDERS TO THE WAY WE'RE DOING BUSINESS AND ALSO TO THE WAY WE'RE DOING THE SOFT KIND OF BUSINESS. COMMUNICATION, GOVERNANCE, THINGS LIKE THAT. 
          >> GONZALEZ: IS THERE AN OPPORTUNITY FOR A RESIDENT, LIKE A REGULAR OLD RESIDENT 
          TO PARTICIPATE? >> PUENTE: OH, YES. THEY'RE POSTED. 
          THEY'RE OPEN MEETINGS. AND SO YES. ANYBODY CAN COME AND WATCH. 
          >> GONZALEZ: 
          >> GONZALEZ: IF THERE WAS AN OPPORTUNITY, THAT WOULD BE HELPFUL. 
          I THINK THAT'S THE REAL ONES THAT CAN TELL YOU WHETHER THE COMMUNICATION IS WORKING 
          [02:15:02]
ON NOT. I WOULD WELCOME AN OPPORTUNITY TO HAVE -- WE APPOINT RESIDENTS TO OUR COMMITTEES. WE EACH PROBABLY HAVE 50-PLUS RESIDENTS THAT WE APPOINT. IF THERE'S AN OPPORTUNITY. 
          THANK YOU. >> PUENTE: THANK YOU. >> MAYOR JONES: ANYONE ELSE LIKE TO SPEAK ON THIS ITEM? THANK YOU, ROBERT. 
          THANK YOU TO THE TEAM. TROY, THANK YOU FOR CONFIRMING THAT WHILE THE REDUCED MINIMUMS INTRODUCES MORE RISK THAN WHAT WAS PRESENTED IN JUNE, YOU'RE COMFORTABLE WITH THIS PROPOSAL. ADDITIONALLY, THE RANGE STILL HELPS TO MANAGE EXPECTATIONS ABOUT WHAT RATEPAYERS CAN EXPECT TO SEE. OKAY. I DO NOT SUPPORT THE WAIVER FOR THE IMPACT FEES FOR THE VILLAS AT TIMBERWOOD. I DO SUPPORT THE COUNTY COVERING THESE EXPENSES OR COUNCIL MEMBERS CHOOSING TO USE CARRY FORWARD RESOURCES IF THEY WOULD LIKE TO. I LOOK FORWARD TO THE DISCUSSION AT THE BOARD, AT THE SAWS BOARD, TO UNDERSTAND THE SCALE AND SCOPE WITHIN THE CITY LIMITS OF THE IMPACT FEE ISSUE AND HOW WE MIGHT ADDRESS THAT IN A WAY THAT MEETS THE AFFORDABILITY NEEDS IN OUR COMMUNITY. OKAY. 
          ANY OTHER COMMENT ON THIS, ERIK? >> WALSH: I WAS GOING TO ADD THE RATE PROPOSAL THAT ROBERT BRIEFED YOU ON WILL BE ON THE OCTOBER 8 AGENDA. 
          >> MAYOR JONES: THANK YOU. WE DO HAVE EXECUTIVE SESSION. 
          I WILL TAKE US INTO THAT. THE TIME IS NOW 4:21 P.M. ON WEDNESDAY, SEPTEMBER 30. 
          [EXECUTIVE SESSION
At any time during the meeting, the City Council may recess into executive session in the C Room to consult with the City Attorney's Office (Texas Government Code Section 551.071) and deliberate or discuss any of the following:
 ]
THE CITY COUNCIL OF THE CITY OF SAN ANTONIO WILL NOW MEET IN EXECUTIVE SESSION TO CONSULT WITH THE CITY ATTORNEY'S OFFICE PURSUANT TO CHAPTER 551.071 OF THE TEXAS GOVERNMENT CODE AND TO DELIBERATE OR DISCUSS THE FOLLOWING ITEMS: BRIEFING BY SAWS AND CPS ON CYBERSECURITY MEASURES PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.076. SECTION 551.0761, AND SECTION 551.089. 
          ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO SECTION 551.087. 
          THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY PURSUANT TO SECTION 551.072. AND LEGAL ISSUES RELATED TO LITIGATION INVOLVING THE CITY, EMERGENCY PREPAREDNESS, AND COLLECTIVE BARGAINING ALL PURSUANT TO 
          >> MAYOR JONES: THE TIME IS NOW 5:23 P.M. ON WEDNESDAY, SEPTEMBER 30TH, AND THE CITY OF SAN ANTONIO CITY COUNCIL PUBLIC COMMENT IS CALLED TO ORDER. MADAM CLERK, PLEASE CALL ROLL. 
          >> MAYOR JONES: OKAY. THANK YOU. PUBLIC COMMENT'S AN OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO ADDRESS THE CITY COUNCIL. 
          BECAUSE THE SUBJECT IS NOT POSTED ON A SPECIFIC AGENDA. 
          >> BEFORE I DO THAT, I WILL CLOSE OUT THE B SESSION. 
          IS . ONE SECOND, MA'AM. THE TIME IS NOW 5:24 P.M. 
          ON SEPTEMBER 30TH, 2026, AND THE SAN ANTONIO CITY COUNCIL WILL NOW RECONVENE IN OPEN SESSION. NO OFFICIAL ACTION WAS TAKEN IN EXECUTIVE SESSION. THE TIME IS NOW 5:24 P.M. 
          AND THAT MEETING IS
* This transcript was compiled from uncorrected Closed Captioning.