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WELCOME TO THE CITY COUNCIL BRIEFING OF THE SAN ANTONIO WATER SYSTEM OF APRIL 12, 2018.
>> COUNCILMAN BROCKHOUSE IS ON HIS WAY.
>> COUNCILMAN PERRY WILL NOT BE HERE.
>> MAYOR NIRENBERG: I THINK, FOR THE RECORD, COUNCILWOMAN SANDOVAL IS TRAVELING TODAY SO SHE WASN'T HERE FOR A OR FOR THIS ONE.
WE WELCOME EVERYONE TO OUR UTILITY BRIEFING.
TODAY WE HAVE SAWS AND A PRESENTATION ON THE AUDIO].
AS A REMINDER TO EVERYONE AROUND THE DAIS AND EVERYONE WATCHING, WE DO HAVE THESE MONTHLY SO EVERYONE CAN STAY AWARE AND MORE INFORMED ABOUT THE DETAILS.
>> THANK YOU, MR. MAYOR AND COUNCIL MEMBERS.
AS THE MAYOR SAID, THIS IS AN OPPORTUNITY FOR US TO GET IN FRONT OF YOU EVERY OTHER MONTH AT CPS AND SAWS.
THIS MONTH WHAT WE WANT TO TALK TO YOU ABOUT, HOW OUR CITY GROWS, HOW WE WORK WITH THE CITY TO MAKE SURE WE HAVE THE RIGHT TYPE OF GROWTH AND WHAT OUR INVOLVEMENT IS WITH THAT.
SO SPECIFICALLY IN 2010 OUR BOARD PASSED A RESOLUTION.
IT'S BEEN BY PRACTICE PRIOR TO THAT, BUT BY RESOLUTION NOW, WE FORMALLY ACCEPTED THE CITY'S MASTER PLAN.
IN OTHER WORDS, IF THE CITY WANTS TO GROW AT A PARTICULAR PACE, A PARTICULAR WAY, A PARTICULAR METHOD WE, AS YOUR UTILITY, ARE GOING TO FOLLOW THAT.
SO WE SUPPORT THE CITY'S MASTER PLAN AND ALL RELATED POLICIES REGARDING THAT.
WE HAVE WHAT IS CALLED A CCN, A CERTIFICATE OF CONVENIENCE AND NECESSITY.
AND IT'S SIMPLY LIKE YOUR CITY LIMITS.
WITHIN THIS CERTIFICATE OF CERTIFICATED AREA, WE HAVE THE RIGHT AND OBLIGATION TO SERVE WHOEVER WANTS WATER AND WASTEWATER SERVICES IN THOSE AREAS.
WE HAVE A WATER CCN AND WASTEWATER CCN.
OUR GOAL IS TO HAVE IT BE CONTIGUOUS WITH THE CITY'S ETJ.
WE WANT TO MAKE SURE THAT ANY GROWTH IS SELF-SUSTAINED BY IMPACT FEES.
IN OTHER WORDS, THAT GROWTH PAYS FOR ITSELF.
IF WE'RE GOING TO GROW BY ACQUIRING OTHER WATER SYSTEMS WE'RE GOING TO DO SO IN A VERY EFFECTIVE MANNER.
YOU WOULD THINK THAT'S COMMON SENSE BUT OFTENTIMES SMALLER SUBURBAN CITIES WANT TO SELL US THEIR WATER SYSTEM OR THEIR WASTEWATER SYSTEM, AND THE REASON, OBVIOUSLY, IS THEY DON'T WANT TO HANDLE IT ANYMORE.
THERE'S MAYBE A LOT OF CAPITAL COSTS INVOLVED.
SO WE REALLY HAVE TO LOOK AT THAT TO SEE IF WE WANT TO GO IN THAT MANNER.
EXTENDING SERVICE TO NEW CUSTOMERS.
DEVELOPERS WANT TO DEVELOP A CERTAIN PART OF TOWN AND BUILD SOME NEW HOMES AND ALLOW FOR
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THAT GROWTH.THEY HAVE TO PAY FOR THE DESIGN, THE CONSTRUCTION, AND ALL OF THE INFRASTRUCTURE THAT GOES INTO THAT AREA TO CONNECT TO SAWS.
SO ALL OF THE PIPES, THE PUMPS, THE TRANSMISSION LINES THAT ARE BUILT TO SERVE THAT NEW NEIGHBORHOOD, THAT NEW PLANNED COMMUNITY WILL BE PAID FOR BY THE DEVELOPER.
AND THEY HAVE TO PAY IMPACT FEES.
WHEN THEY DO THAT, THEY HAVE TO COMPLY WITH OUR REGULATIONS.
IN OTHER WORDS, OUR DESIGN STANDARDS AND OUR MATERIAL STANDARDS.
BECAUSE AFTER THAT IS BUILT, THEY DEED THAT WHOLE INFRASTRUCTURE OVER TO SAWS.
AND THE LAST FIVE YEARS THEY HAVE DEEDED, CONTRIBUTED $300 MILLION WORTH OF ASSETS TO SAWS.
THAT'S ALL OF THE PIPES, THE PUMPS, TANKS THAT THEY BUILT DEVELOPING THEIR NEIGHBORHOOD AFTER THAT PERIOD OF TIME THEY HAVE DONATED IT BACK TO SAWS.
THE WAY THIS IS DONE IS BY AGREEMENT WITH THE DEVELOPER.
WHAT THEY WANT TO BE ABLE TO DO TO BUILD THAT NEIGHBORHOOD.
THAT COMMUNITY IS HAVE CAPACITY, HAVE THE RIGHT TO USE PART OF OUR SYSTEM TO MAKE SURE THAT THEY CAN PROVIDE THE NEEDED SERVICES TO THEIR COMMUNITY.
SO THAT'S WATER AND WASTEWATER.
SO THEY REACH AN AGREEMENT WITH US THAT WE WILL RESERVE PART OF THAT CAPACITY FOR THEM.
IN OTHER WORDS, THEY REACH AN AGREEMENT WITH US AND WITHIN A CERTAIN AMOUNT OF YEARS THEY HAVE TO BUILD OUT THIS NEIGHBORHOOD.
SO WE GUARANTEE THE CAPACITY IF THEY BUILD IT THE WAY WE REQUIRE THEM TO BUILD IT AND IF THEY PAY THEIR IMPACT FEES.
THIS IS NOT A LAND MANAGEMENT TOOL.
THE CITY IS THE ONE THAT DOES THAT THROUGH YOUR PLANNING AND ZONING PROCESS, BUT WE DO GO HAND IN HAND IN HOW THAT IS DONE.
SO WE DO HAVE, AS I MENTIONED, AN OBLIGATION TO SERVE WHOEVER IS IN OUR JURISDICTION, IN OUR DISTRICT, WITHIN OUR LINES.
WE HAVE THAT EXCLUSIVE RIGHT BUT WE ALSO HAVE AN OBLIGATION TO SERVE.
WE CAN'T PICK AND CHOOSE THAT THIS PARTICULAR TYPE OF INDUSTRY WE'RE NOT GOING TO SERVE THEM BECAUSE WE DON'T WANT TO.
WE DON'T HAVE THAT RIGHT TO DO.
SO AS LONG AS THEY DO WHATEVER THEY ARE SUPPOSED TO DO, GET ALL THE PERMITS THEY ARE SUPPOSED TO, WE HAVE THAT OBLIGATION TO SERVICE THEM.
BUT OFTENTIMES IT CATCHES US IN A VERY AWKWARD SITUATION.
SO WE WERE WITHIN OUR CCN WAS THE CRESCENT HILLS, A 3,500 HOME DEVELOPMENT.
IT WAS IN COMAL COUNTY, NOT IN THE CITY OF SAN ANTONIO.
IT WAS OVER THE EDWARDS RECHARGE ZONE SO YOU WOULD ASK WHY WOULD YOU ALLOW A DEVELOPMENT TO BE BUILT THERE? UNDER STATE LAW WE HAVE AN OBLIGATION TO.
WHAT THE CITY DID, AND THIS WAS ACTUALLY CITY COUNCIL NIRENBERG AT THE TIME, GOT SOME INDIVIDUALS TOGETHER.
THE NATURE CONSERVANCY AND THEY BOUGHT THE DEVELOPMENT.
HE GOT TO MAKE HIS PROFIT HE WANTED TO MAKE.
THE BRACKEN BAT CAVE AND THE AREA AROUND THERE WHERE THERE'S OTHER OPEN SPACE IS GOING TO STAY OPEN SPACE.
ALTHOUGH THIS WAS OUTSIDE OF OUR USA PROCESS IT STILL HAPPENED BECAUSE OF OUR USA PROCESS AND THE CITY, THROUGH CITY COUNCIL NIRENBERG, AT THE TIME, WAS ABLE TO MAKE THAT HAPPEN.
SO THESE IMPACT FEES THAT I HAVE BEEN TALKING ABOUT, WHAT IS THAT? WELL, THEY ARE IMPACT FEES TO SUPPORT GROWTH.
IT'S A ONE-TIME CHARGE TO A DEVELOPER.
WHAT THEY USE IT FOR, WHAT WE USE IT FOR IS FOR BUILDING ELEVATED STORAGE TANKS, WATER WELLS, WATER AND WASTEWATER TRANSMISSION MAINS, EVEN THE EASEMENTS THAT WE NEED TO ACQUIRE TO PUT IN THAT INFRASTRUCTURE ARE ACQUIRED WITH IMPACT FEES.
AND THIS IS DONE SO THAT THERE'S AN EQUITABLE WAY TO PAY FOR THIS.
BECAUSE WE DON'T WANT EXISTING CUSTOMERS TO HAVE TO PAY FOR NEW GROWTH.
NEW GROWTH SHOULD PAY FOR NEW GROWTH.
WE HAVE ESSENTIALLY TWO DIFFERENT TYPES OF IMPACT FEES.
BUT WITHIN THOSE THERE ARE SOME SUBTYPES OF IMPACT FEES.
WATER FLOW, WATER SYSTEM DEVELOPMENT, WATER SUPPLY.
THOSE ARE THE WATER IMPACT FEES.
ON THE WASTEWATER SIDE, THE COLLECTION AND THE TREATMENT IMPACT FEES.
IMPACT FEES ARE VERY STRUCTURED.
IT ACTUALLY COMES FROM STATE LAW.
WE HAVE A MEMBERSHIP, A COMMUNITY-BASED ADVISORY BOARD THAT IS BY LAW, BY STATE LAW, HAS TO BE 40% FROM THE REAL ESTATE OR BUILDING INDUSTRY.
AND THESE FEES HAVE TO BE UPDATED EVERY FIVE YEARS.
AND WE'RE IN THAT CYCLE RIGHT NOW WHERE THEY HAVE TO BE UPDATED BY 2019.
SO WE'RE IN THE PROCESS, AS OF RIGHT NOW, GETTING ALL THE NECESSARY WORK DONE TO GET IN FRONT OF YOU IN 2019.
THE IMPACT FEES ARE TO BE FOR CAPITAL COSTS ONLY.
YOU CANNOT USE THEM TO PAY O AND M COSTS.
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THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE HAS TO REVIEW LAND USE ASSUMPTION, WHERE ARE WE GROWING AND HOW ARE YOU GOING TO PREDICT THAT GROWTH OVER THE NEXT FIVE YEARS AND HOW AND WHAT THAT IMPACT FEE CALCULATION SHOULD BE.IT'S BASED ON GROWTH AND BY STATE LAW WE ARE REQUIRED TO IDENTIFY WHAT THE MAXIMUM AMOUNT CAN BE.
IT'S NOT A DICTATION THAT THE COUNCIL HAS TO ACCEPT THAT FEE, BUT WE HAVE TO TELL YOU WHAT THAT MAXIMUM FEE CAN BE.
AND WE USUALLY ASKED THAT THAT BE THE FEE, BUT THAT'S OBVIOUSLY TO BE DECIDED BY COUNCIL NEXT MONTH.
THIS SLIDE SHOWS THE CURRENT MEMBERSHIP OF THAT COMMITTEE.
EACH COUNCIL MEMBER CAN APPOINT ONE FROM YOUR PARTICULAR DISTRICT.
OBVIOUSLY THERE'S NOT A REQUIREMENT THAT THAT INDIVIDUAL LIVE IN YOUR DISTRICT.
AS I MENTIONED, 40% HAVE TO BE FROM THE BUILDING INDUSTRY.
TRADITIONALLY 60, 70, 80%, SOMETIMES 90% HAS BEEN FROM THE BUILDING INDUSTRY.
THESE ARE TWO-YEAR TERMS. THERE'S NO LIMIT ON THE AMOUNT OF TERMS, AND YOU SERVE UNTIL YOU'RE REPLACED.
THE IMPACT FEE UPDATE THAT I HAVE BEEN TALKING ABOUT STARTS, FOR US, IT'S KIND OF STARTED ALREADY.
THE COMMITTEE HAS ALREADY MET AT LEAST ONCE.
BUT NEXT MONTH OUR BOARD IS GOING TO GIVE US THE AUTHORITY TO HIRE A CONSULTANT, AND YOU'LL SEE THE DATES THERE AND THE CORRESPONDING TASK AT THE END WILL BE WHEN WE'RE IN FRONT OF YOU AGAIN IN JUNE OF -- EXCUSE ME, IN MARCH OR APRIL OF 2019 FOR CONSIDERATION ON WHAT THAT IMPACT FEE SHOULD BE.
SO PRIOR TO THAT THERE WILL BE PUBLIC HEARINGS.
THERE WILL BE PUBLIC OPPORTUNITY FOR COMMENT, AND WE WILL SIT DOWN WITH EACH ONE OF YOU AND YOUR STAFFS TO GIVE YOU MORE INFORMATION ABOUT WHAT WE FEEL IT SHOULD BE AND HOW THEY SHOULD BE SET.
SO CURRENTLY WHAT WE HAVE, OUR IMPACT FEES THAT VARY OFTENTIMES BY GEOGRAPHY.
YOU'LL SEE ON THE WATER SIDE THE HIGHEST IMPACT FEES ARE ON THE NORTHWEST PART OF TOWN.
THE LOWEST ARE ON THE SOUTH SIDE OF TOWN.
AND FRANKLY THAT'S BECAUSE THE ON OUR SYSTEM.
BECAUSE THE WATER, THE PRODUCTION OF THE WATER IS MOSTLY ON THE SOUTHERN PART OF SAN ANTONIO.
AND TO MOVE THAT WATER UPHILL INTO THE NORTHERN PART, OBVIOUSLY COSTS MORE.
SO THERE'S MORE FEES ASSOCIATED WITH THAT.
AND THAT'S WHY THEY ARE IN THAT MANNER.
THOSE ARE BASED ON PRESSURE ZONES.
ON THE WASTEWATER SIDE, IT'S BASED AGAIN ON THE IMPACT YOU HAVE ON YOUR -- ON OUR SYSTEM.
SO THE HIGHER NORTH YOU ARE THE SEWAGE HAS TO FLOW ALL THROUGH SAN ANTONIO ALL THE WAY SOUTH INTO OUR WASTEWATER TREATMENT PLANTS THAT ARE IN SOUTHERN BEXAR COUNTY.
SO YOU'RE USING MORE INFRASTRUCTURE, PUTTING MORE PRESSURE ON THE SYSTEM.
SO THE IMPACT FEES ARE HIGHER ON THE FAR NORTH SIDE AND GET LOWER AS YOU GO DOWN INTO THE SOUTHERN PART OF BEXAR COUNTY.
TO GIVE YOU AN EXAMPLE OF THAT, IF THERE'S A DEVELOPMENT ON THE NORTHWEST SIDE OVER THE EDWARDS RECHARGE ZONE, THE WATER IMPACT FEES ARE ABOUT $4800.
THE WASTEWATER IMPACT FEES ARE ABOUT $3300.
SO OVERALL, $8,167 IMPACT FEE FOR A NEW HOME.
IF YOU ARE BUYING AND SELLING EXISTING HOMES THOSE IMPACT FEES WERE PAID FOR A LONG TIME AGO.
YOU NEVER HAVE TO CONSIDER THEM AGAIN.
ANY NEW BUILDING, ANY NEW HOME HAS TO PAY IMPACT FEES.
EXISTING BUILDINGS THAT ARE BOUGHT AND SOLD YOU DON'T HAVE TO WORRY ABOUT IMPACT FEES.
ANOTHER EXAMPLE ON THAT IS A HOME ON THE SOUTH SIDE WHERE THE IMPACT FEES ARE ROUGHLY $2300 LESS THAN IT WOULD BE ON THE NORTH SIDE.
THERE'S A BIG DIFFERENCE THERE.
AGAIN, THAT'S BECAUSE THERE'S LESS OF AN IMPACT ON THE HOME.
AND A PARTICULAR NOTE IS THAT THESE RATES, AGAIN, WE HAVE CALCULATED, AND YOU'LL SEE CERTAIN KINDS OF -- EXCUSE ME.
CERTAIN KINDS OF BOUNDARIES THERE.
I'M TRYING TO GO TO THE NEXT SLIDE.
THESE BOUNDARIES ARE BASED ON JUST EITHER WATERSHEDS OR PRESSURE ZONES, AS I MENTIONED.
SO THE FEES OFTENTIMES DEVELOPERS SEE THAT IT'S MORE COST-EFFECTIVE TO BUILD IN ONE PART OF TOWN OR ANOTHER.
SO WE'RE HOPING THAT HELPS OUT WITH HOW OUR CITY GROWS.
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I'M GOING TO WRONG WAY.I HAD THE EXAMPLE OF THE NORTH SIDE, EXAMPLE OF THE SOUTH SIDE.
AND WHAT WE WANT TO GET TO IS A POINT WHERE WE HAVE A BALANCING ACT BETWEEN OUR RATES AND OUR IMPACT FEES.
THE HIGHER THE IMPACT FEES, THE MORE REASONABLE AND LOWER THE OVERALL RATES CAN BE FOR OUR CUSTOMERS.
FOR EXAMPLE, ELIMINATED IMPACT FEES IT WOULD CAUSE PRESSURE ON YOUR RATES TO BE INCREASED ATAP LEAST 1% PER YEAR OVER THE NEXT FIVE YEARS.
WE ALWAYS TRY TO MAKE SURE THAT THERE'S A GOOD BALANCE BETWEEN THE TWO TO HAVE THAT BE FAIR FOR THE EXISTING CUSTOMERS AND, FRANKLY, FAIR FOR THE NEW CUSTOMERS.
AND THIS ALLOWS US TO HAVE THE LOWEST -- SOME OF THE LOWEST RATES IN TEXAS.
LOWER THAN ANY OTHER MAJOR CITY, EXCEPT FOR DALLAS.
AND SO THAT BALANCE WE FEEL IS FAIR FOR OUR CUSTOMERS BECAUSE WE'RE BALANCING THE RESPONSIBILITIES ON EACH PARTICULAR PARTY.
THIS ALSO ALLOWS US TO DO WHAT WE WANT TO CONSIDER AS SMART GROWTH.
AND NOT JUST BECAUSE YOU'RE MAYOR, MAYOR, BUT THIS IS ANOTHER INCIDENT WHERE YOU WERE INVOLVED IN AND THAT'S THE SOUTHWEST BEXAR COUNTY SEWER PIPELINE.
THAT WAS A PUBLIC PRIVATE PARTNERSHIP, A 32-MILE SEWER LINE, OVER $100 MILLION WITH DEVELOPER INVOLVEMENT THAT PROVIDES CAPACITY FOR A CITY AS LARGE AS CORPUS CHRISTI.
AND SO THIS TOLD THE DEVELOPMENT COMMUNITY THAT INFRASTRUCTURE THAT YOU NEED IS GOING TO BE THERE.
IT'S BEEN COMPLETED NOW, THAT PIPELINE HAS BEEN COMPLETED NOW AND THERE'S ALREADY 73,000 EDU COMMITMENTS.
EDU IS ESSENTIALLY A HOME, A DWELLING UNIT, ENOUGH WATER FOR ONE HOME.
SO THAT GROWTH THAT WE WANT IN THE FAR WEST SIDE ON THE SOUTH SIDE IS HAPPENING THROUGH POLICIES LIKE THIS.
AND, MAYOR, OBVIOUSLY WE LISTENED TO YOUR STATE OF THE CITY SPEECH THIS WEEK.
ONE OF THE THINGS YOU TALKED ABOUT WAS AFFORDABLE HOUSING.
WE WANT TO MAKE SURE THAT WHAT SAWS DOES IS HELPFUL IN THAT REGARD.
SO WE WANT TO MAKE SURE THAT YOU KNOW THAT THE IMPACT FEE COST ON THESE NEW HOMES IS ROUGHLY ABOUT 3% OF THAT OVERALL COST.
AND IF YOU LOOK AT THE STATISTICS OF BUILDING A NEW HOME, THE MOST EXPENSIVE THING IS USUALLY SOME TYPE OF MATERIAL, EITHER THE SOFT WOOD, THE GYPSOME OR LABOR.
THOSE THINGS COME WAY BEFORE THE COST OF THE IMPACT FEE.
AND A PARTICULAR NOTE ALSO IS ON THAT IMPACT FEE IS PAID ONCE DURING THE LIFETIME OF THAT HOME.
EVEN IF THAT HOME BURNS DOWN AND YOU BUILD ANOTHER ONE ON THERE THE IMPACT FEE HAS ALREADY BEEN PAID FOR.
SO IT'S A GREAT VALUE BECAUSE, UNLIKE YOUR ROOF, YOU DON'T HAVE TO REPLACE THE IMPACT FEE.
YOU MIGHT HAVE TO REPLACE YOUR ROOF ALONG THE LINES.
YOU MIGHT HAVE TO PUT NEW SIDING ON THE HOME, SOMETHING NEW WITH THE HOME, BUT THESE IMPACT FEES ARE THERE FOREVER.
I THINK WE HAVE A COMMITMENT TO AFFORDABLE HOUSING.
AND WITH THAT, MAYOR, I WOULD LOVE, COUNCIL MEMBERS, TO TAKE ANY QUESTIONS THAT YOU MAY HAVE.
THANK YOU, ROBERT FOR THE PRESENTATION.
I'LL GO AHEAD AND LEAD OFF WITH A COUPLE OF QUESTIONS.
FIRST ONE IS SO YOU SHOWED THE UPDATE, THE TIMELINE FOR THE NEXT IMPACT FEE UPDATE.
WHEN DOES THIS REALLY KICKOFF IN EARNEST? IS THE CAK ALREADY MEETING AND HAVE THEY PUT OUT AN RFP FOR THE CONSULTANT?
WE HAVE ALREADY PUT OUT THE RFP.
WE HAVE ALREADY GOT RESPONSES BACK.
WE ALREADY ARE GOING THROUGH THE SELECTION PROCESS.
AS A MATTER OF FACT, I THINK STAFF HAS ALREADY MADE A RECOMMENDATION TO ME AND I WILL MAKE THAT RECOMMENDATION TO OUR BOARD SO IT WILL BE ON OUR MAY AGENDA TO SELECT THAT ENTITY.
>> SO THE COMMITTEE ITSELF HAS ALREADY MET AT LEAST ONCE.
AND NOT TO OVERSIMPLIFY THIS, BUT WE ARE TALKING ABOUT IMPACT FEES BUT I DON'T THINK WE IN AUDIO] UNLESS WE REALLY GET A GRASP OF WHAT OUR POLICIES ARE FOR GROWTH.
SO I APPRECIATE YOU STARTING THERE.
WE NOW HAVE THE S.A. TOMORROW PLAN BASICALLY IN PLACE WHERE NOW INTO THE IMPLEMENTATION PHASE.
AFTER THE PREVIOUS ITERATION OF THE IMPACT FEE DISCUSSION IN 2014, WHAT'S DIFFERENT NOW? IS THERE A NEW DISCUSSION HAPPENING AT THE SEAAK? IS THERE A NEW APPROACH TO THIS BY SAWS AS A RESULT OF THE PLANNING PROCESS?
>> WE DO TAKE THAT INTO CONSIDERATION AND WE RELY ON THE
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INPUT OF THE MEMBERS THAT ARE APPOINTED BY THE COUNCIL MEMBERS.SINCE WE ARE AT THE VERY BEGINNING OF THAT PROCESS IT'S A GREAT OPPORTUNITY FOR THIS COUNCIL TO MAKE ITS FEELINGS FELT ON THAT COMMITTEE BECAUSE A LOT OF THESE TERMS HAVE EXPIRED ALREADY.
SO THERE'S AN OPPORTUNITY TO GET AN INDIVIDUAL IN ON THE GROUND FLOOR WHERE THERE'S NOT A BIG LEARNING PROCESS.
SO IF S.A. TOMORROW IS A BIG ISSUE, THAT NEEDS TO BE PART OF -- IF THERE'S A NEW MEMBERSHIP, PART OF THEIR MEMBERSHIP IDEAS THAT ARE PUT IN PLACE.
>> MAYOR NIRENBERG: YEAH, AND MY UNDERSTANDING IS THAT THE CAPITAL IMPROVEMENT ADVISORY COMMITTEE, IT'S A CRITICAL COMMITTEE.
IF YOU HAVEN'T SPENT MUCH TIME LOOKING AT YOUR APPOINTEE, I WOULD RECOMMEND THAT YOU DO, BECAUSE THE IMPACT FEES HAVE SUCH AN IMPORTANT FUNCTION FOR OUR GROWTH AND HOW IT'S CARRIED OUT.
BUT MY UNDERSTANDING IN TALKING WITH MY APPOINTEE IN THE LAST FEW YEARS IS THAT IT'S A LOT OF DENSE MATERIAL.
IT REQUIRES A LOT OF SIGNIFICANT EXPERTISE IN TERMS OF DEVELOPMENT EXPERTISE, AS WELL AS AN UNDERSTANDING OF BASIC WATER LAW AND GROWTH POLICIES OF THE CITY.
SO HOPEFULLY AS YOU CONSIDER REAPPOINTING OR APPOINTING NEW MEMBERS TO THE CAC, GETTING PEOPLE THERE THAT HAVE KNOWLEDGE OF THE SITUATIONS THAT THEY'LL BE CONFRONTED WITH IS EXTREMELY IMPORTANT.
BUT AS IT RELATES TO GROWTH POLICY, THE TWO ELEMENTS THAT WE ALWAYS LOOK AT ARE THE CERTIFICATE OF CONVENIENCE AND NECESSITY, WHICH IS THE SERVICE AREA FOR SAWS IN WHICH IT IS REQUIRED TO PROVIDE SERVICE, NEW SERVICE IF THERE'S AN APPLICATION.
AND THE APPLICATION COMES IN THE FORM OF A USA, UTILITY SERVICE AGREEMENT.
HAVE THERE BEEN DISCUSSIONS ABOUT MODIFICATION OF THE CCN AS IT RELATES TO OUR GROWTH STRATEGY?
BECAUSE OUR CCN, FRANKLY, IT'S NOT TOTALLY OVERLAPPING THE CITY'S ETJ BUT THE VAST MINORITY OF IT DOES.
OUR CCN IS BIGGER THAN THE CITY'S ETJ.
SO IT'S REALLY FILLING IN GAPS WHERE THE CITY MAY HAVE AN ETJ OR STAYING PAT UNTIL THE CITY DOES GROW IN THAT DIRECTION, OR DOES NOT GROW IN THAT DIRECTION.
SO WITH THE ACQUISITION OF BEXAR-MET WE DID GET MORE INTO MEDINA COUNTY AND A BIT INTO ATASCOSA COUNTY, BUT WE WERE ALREADY IN COMAL COUNTY AND GUADALUPE COUNTY.
IT'S REALLY A QUESTION OF STANDING PAT.
SO THE ANSWER IS NO WE'RE NOT ACTIVELY LOOKING AT MOVING OUR CCN LINES, WHICH IS A PROCESS DONE THROUGH THE STATE.
AND BUT THE USAS SOMETIMES COME FROM INSIDE OR OUTSIDE OF THE CCN, AND FOR EVERYONE'S EDIFICATION THE SAWS BOARD CONSIDERS ALL USAS ON AN OPEN INDIVIDUAL BASIS.
THEY'RE NOT PAST ON CONSENT, THEY ARE VETTED BY THE BOARD TO DETERMINE WHETHER OR NOT THEY CORRELATE WITH OUR GROWTH STRATEGIES OF THE CITY AND WHETHER THEY MAKE SENSE FOR SAWS AS A UTILITY AND SO FORTH .
I GUESS THE LAST QUESTION I HAVE, AND YOU ALLUDED TO IT, THE IMPACT OF THE IMPACT FEES TO HOUSING COSTS.
IT'S A BALANCE.MPACT FEES TO BECAUSE WE ALSO DON'T WANT RATE PAYERS TO SUBSIDIZE GROWTH.
WE WANT TO MAKE SURE THAT GROWTH IS SUSTAINABLE AND THAT GROWTH IS AS CLOSELY AS POSSIBLE PAYING FOR ITSELF, BUT THERE ARE COMMUNITIES THAT DON'T HAVE IMPACT FEES AT ALL.
I UNDERSTAND THAT DALLAS DOESN'T.
>> I DON'T THINK DALLAS ONE OF THE REASON, DALLAS DOESN'T GO.
IT'S NOT GROWING THE NEAR THE WAY SAN ANTONIO AND OTHER CITIES ARE.
THEY DO FOOT HAVE IMPACT FEES.
THEY HAVE IT WITHIN THEIR RATES.
>> MAYOR NIRENBERG: IS THERE A SENSE HOW FAST, IF AT ALL, THE DALLAS WATER SYSTEM I'M NOT SURE WHAT IT'S CALLED, GROSS IN TERMS OF CUSTOMER BASE EVERY YEAR?
>> I DON'T THINK IT'S GROWING AT ALL BUT WE'LL CHECK ON THAT.
>> MAYOR NIRENBERG: YOUR GRAPH OF AVERAGE WATER BILL, DALLAS SEEMS LIKE ONE OF THE LEAST EXPENSIVE -- IS THE LEAST EXPENSIVE OF THE MAJOR CITIES IN TEXAS.
BUT IT'S HARD TO GET AN APPLES TO APPLES COMPARISON.
FOR EXAMPLE, AUSTIN HAS THE HIGHEST IMPACT FEES ALSO AND THEY HAVE A VERY HIGH WATER BILL.
>> NEW BRAUNFELS, FOR EXAMPLE, THEIR IMPACT FEES HIGHER THAN SAN ANTONIO'S AND NEW BRAUNFELS IS GROWING VERY FAST.
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MY COLLEAGUES HAVE QUESTIONS? COUNCILWOMAN VIAGRAN?
THANK YOU, ROBERT, SO MUCH FOR THIS INFORMATION, AND YOU WERE TALKING ABOUT HOW THE GROWTH PAYS FOR ITSELF, AND I THINK PART OF THE ISSUE, TOO, WHERE ARE THE LINES BEING BUILT OUT, WHERE ARE WE GROWING.
I DON'T KNOW IF YOU HAVE A MAP WITH YOU, TO FIND OUT WHERE ARE THE LOCATIONS IN THE CITY THAT ARE STILL ON SEPTIC OR WELLS THAT DO NOT HAVE ANY S.A.W.S.
>> I WOULD SAY MOST OF THOSE ARE IN THE DEEP SOUTH SIDE AND THE FAR WEST SIDE.
>> VIAGRAN: AND IS IT BECAUSE THEY ARE NOT PART OF THE SERVICE AREA OF S.A.W.S., OR JUST BECAUSE -- CAN THEY CHOOSE TO BE LIKE THAT?
>> PROBABLY ORIGINALLY, THEY WERE NOT PART OF OUR SERVICE AREA WHEN THEY WERE BUILT, WHEN THAT -- -- EXPENSIVE FOR THEM TO GO ON TO OUR SYSTEM.
IS WHAT MOST OF THE ISSUES ARE.
>> VIAGRAN: SO, I THINK ONE OF THE THING, AS WE'RE TALKING ABOUT IMPACT FEES, IF THAT'S ONE FROM THE ISSUES, BUT THEN THE CITY AND S.A.W.S. IS GROWING AND SURROUNDING THEM.
I THINK WE NEED TO LOOK AT, HOW ARE WE GOING TO, AND WILL THERE WELL AND SEPTICS STAY FUNCTIONING FOREVER? BECAUSE WE KNOW THAT AS THEY CONTINUE TO GROW AND LIVE THERE.
THEY ARE GOING TO NEED TO PUT IN DOLLARS FOR THEIR SEPTIC SYSTEM BUT ARE THEY GOING TO PAY INTO THE S.A.W.S. SYSTEM.
SO, DO THEY -- THOUGH, DO THEY PAY ANY SORT OF FEE AT ALL TO S.A.W.S.?
>> IF THEY ARE NOT ON OUR SEWER SYSTEM, OBVIOUSLY THEY DON'T PAY A SEWER BILL.
SOMETIMES THEY ARE ON OUR WATER SIDE AND THEY DO PAY A WATER BILL BUT OBVIOUSLY THEY DON'T PAY A SEWER CHARGE.
>> VIAGRAN: I THINK I WANT TO DEFINITELY, FOR ANOTHER MEETING FOR US CAN TAKE A LOOK AT SEPTICS AND WELL SITES CONTINUE TO GROW AND AS WE CONTINUE TO LOOK AT SA TOMORROW, IN AND AROUND 410, THAT WE CAN TAKE THOSE AREAS, BECAUSE WE KNOW IT'S BEEN A LOT OF RURAL AREA OUT THERE.
AND IN ANOTHER REQUEST THAT YOU HAVE OR SOMETHING THAT I WOULD LIKE TO SEE IS HOW MANY IMPACT -- I GUESS, AND THIS HAS TO DO WITH THE CITY AS WELL, BEN.
I DON'T KNOW IF YOU HAVE THESE NUMBER, HOW MANY IMPACT FEES HAVE -- HAS THE CITY WAIVED MAYBE IN THE PAST TWO YEARS AND WHERE, ON WHAT PROJECTS.
BECAUSE WHAT I UNDERSTAND, ROBERT, IS THAT YOU ALL DO NOT WAIVE ANY FEES.
IT'S THE CITY THAT IS DOING THE IMPACT FEE WAIVER.
>> S.A.W.S. PRICE AN ANNUAL BUDGET ALLOCATION THROUGH THE BUDGET PROCESS AND THE CITY HAS THREE INCENTIVE PROGRAMS THAT WE FACILITATED AND MINISTER THAT TAKE ADVANTAGE OF THAT FEE WAIVER PROGRAM.
SO WE HAVE INNER CITY REINVESTMENT INPHIL POLICY WAIVER PROGRAM.
THE HOUSING INCENTIVE POLICY AND WE ALSO HAVE OTHER ECONOMIC DEVELOPMENT PROJECTS THAT WE INCENT.
SO THOSE THREE PROGRAMS ARE TAKING ADVANTAGE OF THE ALLOCATED BUDGET THAT S.A.W.S.
PROVIDES ON AN ANNUAL BASIS, SO, SINCE 2012, S.A.W.S. HAS PROVIDED FEE WAIVERS IN THE AMOUNT OF -- IT'S $28 MILLION BUDGETED, BUT WE ARE -- BUT SINCE THEN, AS OF RIGHT NOW, WE HAVE S.A.W.S. FEE WAIVERS IN THE AMOUNT OF 7.7 MILLION THAT ARE APPROVED.
THE $28 MILLION IS THROUGH 2024.
RIGHT NOW WE HAVE $7.7 MILLION THAT WE HAVE APPROVED IN FEE WAIVERS FOR THE PAST FIVE YEARS.
AND THAT'S HELPED ABOUT 1600 PROJECTS WITHIN THOSE THREE PROGRAMS. I DON'T HAVE THE LAST TWO YEAR, BUT I CAN GET YOU THAT NUMBER.
>> VIAGRAN: AND ALSO THE LOCATION OF WHERE SHE'S PROJECTS HAVE BEEN.
>> SO, IT DEPENDS -- SO THE FEE WAIVER PROGRAM POIS THAT THE 84 SQUARE FOOT AREA.
YOU'RE ELIGIBLE IF YOU'RE A SINGLE FAMILY HOME, OR SMALL BUSINESS.
IF YOU'RE AN FORDABLE HOUSE YOU DON'T VERY TO BE WITHIN THAT AREA.
IT'S NOT TIED TO THOSE BOUNDARIES AND WE HAVE CCHIP THAT PROVIDES THAT WITHIN A DESIGNATED BOUNDARY AND ECONOMIC DEVELOPMENT INCENTIVES THAT ARE NOT TIED TO A INDIVIDUAL BOUNDARY EITHER.
IT'S A PROJECT BY PROJECT BASIS.
>> VIAGRAN: IN OUR FEE WAIVERS
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DO WE MAKE SOME SORT OF A CONVERSATION PIECE OR I GUESS A PREREQUISITE THAT THEY'RE GOING TO BE DOING CERTAIN CON NERVATION ASPECTS IF THEY ARE GETTING CITY FEE WAIVERS, IMPACT FEE WAIVERS FOR WATER OR SEWER, THAT THEY DO A PROGRAM.THAT THEY COMMIT TO DOING SOMETHING LIKE THAT.
>> RIGHT NOW OUR FEE WAIVER PROGRAM IS NOT STRUCTURED THAT WAY BUT WE'LL LOOK FOR OPPORTUNITIES AS WE MOVE FORWARD WITH HOUSING AMENDMENT POLICY.
>> VIAGRAN: I THINK THE CONSERVATION PROGRAM IS AWESOME WITH S.A.W.S. BUT IF WE GIVE THE CITY FEE WAIVERS IT'S SOMETHING WE CAN LOOK AT TOGETHER AS PART OF A POLICY CONVERSATION.
>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.
ANYBODY ELSE? COUNCILMAN SALDANA?
>> SALDANA: YES, MAYOR, I HAD A QUICK QUESTION ABOUT -- ALONG THE SAME LINES THAT COUNCILWOMAN VIAGRAN WAS OUTLINING SOME OF THE DISCUSSION AROUND IMPACT FEE, I -- I REALLY LIKED THE DESCRIPTION OF, LOOK, HERE'S THE DIFFERENCE BETWEEN THE CITY AND THE NORTH SIDE.
IT'S A LITTLE MORE EXPENSIVE WITH RESPECT TO IMPACT FEES TO BUILD ANYTHING.
IS THAT RIGHT? ANYTHING AT HOME, COMMERCIAL, MULTI FAMILY, RESIDENTIAL?
>> ANYTHING THAT IS A NEW SERVICE.
>> SALDANA: AND THEN YOU COMPARED IT TO THE SOUTH SIDE WHERE IT'S 2500 OR 20 SOME ON HUNDRED LESS BECAUSE OF THE ACTUAL SHEAR COST OF ENGINEERING TO MOVE WATER.
>> THEY'RE PILLING IT UP RIGHT NOW.
>> SALDANA: THE POLICY WE HAD, ROBERT, WE'VE ALWAYS TALKED ABOUT HOW WE HELP OUT AREAS THAT HAVEN'T GOTTEN A LOT OF INVESTMENT.
I THINK THIS IS AN OLD CONVERSATION THAT'S ALWAYS CUT UP IN A NUMBER OF DIFFERENT WAYS THAT WE DISCUSS IT,LY IS HOW CAN WE GET TO RECALL COUNCILWOMAN GONZALES'S CONVERSATION SHE HAD YESTERDAY, MORE PEOPLE TO CONSIDER, THE WEST SIDE OR MORE PEOPLE TO CONSIDER THE SOUTH SIDE AS AREAS TO INVEST IN IN HOUSING AND COMMERCIAL, RIGHT NOW, IT SEEMS TO BE, EVEN THOUGH IT'S MORE EXPENSIVE UP NORTH.
IT STILL SEEMS TO BE IT ATTRACTS MOST OF THE DEVELOPMENT.
RIGHT NOW, YOU ALL PUT MONEY INTO A BUCKET FOR S.A.W.S. FEE WAIVERS WHICH ARE USED THROUGH THREE DIFFERENT ICRIP S.
LET'S PUT THAT ASIDE FOR NOW AND UNDERSTAND THE FORMULA YOU ALL USE.
IF I'M LOOKING AT THE LEFT MAP ON HERE WHERE IT SAYS HIGH, MIDDLE AND LOW, IF I'M THINKING OF INVESTING IN THE CITY, THAT TELLS ME WHERE MY PRICE POINT WILL BE FOR IMPACT FEE, ESSENTIALLY?
YOU ALSO HAVE TO PAY ON THE SEWER SIDE, SO --
>> SALDANA: WALK ME THROUGH THAT.
IS THAT THE WATER SIDE OR SEWER SIDE.
>> IF YOU GO TO THE EXAMPLE, NUMBER ONE, ON PAGE 13, THAT'S A HOME TO BE BUILT ON THE FAR NORTHWEST SIDE.
OUR HIGHEST COST ON THE WATER SIDE.
SO, THAT IMPACT FEE WOULD BE ROUGHLY $8,000.
IF YOU BUILT THAT HOUSE ON THE SOUTH SIDE, IT WOULD BE ABOUT 2300 DISCHEAPER BECAUSE THE IMPACT FEES ARE THAT MUCH LESS.
WASTE WATER AND WATER SUPPLY FEE?
>> SALDANA: AND I THINK THERE'S AN ENTIRE SPECTRUM OF ISSUES AS TO WHY SOME AREAS GET INVESTED AND SOME AREAS DON'T.
WHETHER IT'S QUALITY OF SCHOOL, QUALITY OF LAND, PROXIMITY TO AMENITIES, SO I WOULD HOPE THAT -- IF WE'RE LOOKING FOR THE MAGIC IMGREED YANT OF THE FORMULA GETTING MORE FOLKS TO DEVELOP IN UNDERDEVELOPED AREAS.
IT'S NOT FLES NECESSARILY JUST THE IMPACT FEES LOWER, I WANT TO MAKE SURE THAT TOOL IS SPECIFICALLY LAID OUT TO FOLKS WHO ARE THINKING ABOUT INVESTING IN OUR CITY.
IS THERE MORE WORK TO BE DONE ON OUR END TO TRY TO MAKE YOUR PARTNERSHIP SOLIDIFIED IN THAT FRONT.
>> YOU MENTIONED IT BUT OBVIOUSLY IT'S NOT NECESSARILY THE PREVIEW OF THIS PARTICULAR COUNCIL OR ANY COUNCIL, IT'S THE EDUCATION OF PUBLIC SCHOOLS.
SO, A BIG DRIVER, OBVIOUSLY, ARE THE MUB LICK SCHOOLS PEOPLE, BUYING HOMES BASED ON THE SCHOOL DISTRICT.
SO, THAT'S ALWAYS THAT BIG 800 POUND GORILLA IN THE ROOM.
BUT, YES, THERE'S GREAT OPPORTUNITIES BETWEEN THE CITY AND OURSELVES TO DO SOMETHING AND THAT'S SOMETHING LIKE THIS PARTICULAR THING.
THE SOUTH BEXAR SEWER PIPELINE
[00:35:02]
IS SOMETHING I TALKED ABOUT ABOUT WHAT WILL BE THE EXPLOSION OF GROWTH.>> THE PROOF IS THAT LAST BULLET.
THESE ARE DEVELOPERS THAT ARE SAYING THEY WANT CAPACITY IN THE FUTURE TO BUILD 73,000 HOMES.
SO WHETHER THAT'S IN THE NEXT FIVE YEAR, THE NEXT 15 YEAR, WE ALREADY RESERVED THAT CAPACITY.
THEY HAVE ALREADY PUT MONEY IN THE GROUND TO DO THIS.
AND YOUR MAYOR WILL TELL YOU THAT EVERY NOW AND THEN, I MAKE A CONCERTED EFFORT TO LET THE BOARD KNOW THAT THIS PARTICULAR USA THAT THEY ARE ABOUT TO VOTE ON, IS TAKING ADVANTAGE OF THIS SOUTHWEST SOUR PIPELINE.
THIS IS A $100 MILLION PIPELINE THAT YOU'LL NEVER SEE AGAIN.
IT'S UNDERGROUND, IT'S BURIED.
YOUR SCHOOLCHILDREN WILL NOT TAKE A FIELD TRIP TO GO LOOK IT AT IT.
IT'S INFRASTRUCTURE THAT IS PUT IN TO CREATE THAT SMART GROWTH THAT WE ALL ONE.
>> SALDANA: I'M CURIOUS TO SEE WHERE THE MAPS ARE.
I WOULD LOVE TO TELL THE STORY TO THE FOLKS THAT WANT AN UPDATE ABOUT GROWTH.
THE SIMPLE QUESTION IS, HOW MUCH MORE RED TAPE CAN WE CUT IN TERMS OF IF WE CAN'T CONTROL THE SCHOOLS, IF WE CAN'T CONTROL THE AMENITIES THAT EXIST TODAY MAYBE WE CAN CONTROL THE FUTURE.
CAN YOU MAKE IT SUCH THAT A SPECIFIC AREA THAT WE WANT TO FOCUS ON WAS THAT THEY CULT THE IMPACT FEE SO LOW THAT IT REALLY GOT PEOPLE'S ATTENTION.
WOULD WE BE ABLE TO HAVE THAT KIND OF CONVERSATION OR ARE YOU CUTTING TOO CLOSE TO THE BONE WHEN YOU START --
>> OBVIOUSLY IT'S A QUESTION OF BALANCE.
IF YOU CHARGE LESS IN IMPACT FEES, YOU HAVE TO PICK UP YOUR RATES TO EVERY CUSTOMER.
THAT'S WHAT SOME CITIES CHOOSE TO DO.
THEY CHOOSE TO SPREAD OUT THAT ENTIRE COST OF GROWTH AMONG THE ENTIRE MEMBERSHIP OF THE COMMUNITY, WE, AS A COMMUNITY, PRIOR COUNCILS, PRIOR S.A.W.S.
BOARDS HAVE CHOSEN TO DO IT IN A MANNER OF CHARGING THE MAXIMUM IMPACT FEE.
THIS LAST GO-AROUND, THE CITY COUNCIL VOTED TO, FIVE YEARS AGO, TO HAVE THE HIGHEST IMPACT FEES POSSIBLE.
WE DID PHASE IT IN, THE BUILDING INDUSTRY'S REQUEST WAS AT LEAST PHASE IT IN.
THEY CAME AND TESTIFIED AND WERE NOT NECESSARILY AGAINST IT, BUT THEY SURE WEREN'T SUPPORTED AND THE COMPROMISE WAS WE'LL PHASE THAT CHARGE IN.
>> IT GOES INTO WHAT ARE YOU GOING TO USE THE PROPERTY FOR? IS IT TORE HOUSING DEVELOPMENT, INDUSTRIAL COMPLEX? STRIP CENTERS? ALL OF THAT IS A FORMULA USED BY THIS COMMITTEE TO FIGURE OUT WHAT THAT MAXIMUM FEE SHOULD BE.
YES, YOUR CITY COUNCIL, OUR BOARD, CAN CHOOSE TO HAVE A LOWER IMPACT FEE THAT WILL RESULT IN A HIGHER RATE OVERALL FOR CUSTOMERS.
WHAT I DO WANT TO MAKE SURE THAT THIS COUNCIL APPRECIATES, IS THAT LOWERING THE IMPACT FEE IS JUST ONE OF TEN DIFFERENT ITEMS THAT THE BUILDING INDUSTRY LOOKS AT.
THEIR BIGGEST COSTS MATERIALS.
AND IF YOU SUBSIDIZE -- IF YOU ITEMIZE THE MATERIALS, IT'S GYPSUM IT'S WHAT IS CALLED SOFT WOOD.
IT'S CALLED THE SIDING THAT THEY PUT ON BEFORE THE PERMANENT SIDING.
THOSE COSTS THAT FLUCTUATE A WHOLE LOT, ARE MUCH MORE THEIR CONCERN THAN THE IMPACT FEES.
THE PROBLEM IS, THAT THEY CAN'T COMPLAIN TO THE CANADIAN GOVERNMENT THAT THEY ARE NOT -- THAT THE TARIFFS ARE TOO MUCH IN BRINGING OVER CANADIAN WOOD BUT THEY CAN SURE COMPLAIN TO YOU ABOUT THE IMPACT FEES.
>> SALDANA: CORRECT, I THINK YOU WANT TO TAKE ALL THOSE THINGS AS VARIABLES.
SOME OF THOSE THINGS IN YOUR CONTROL AND SOME ARE NOT IN YOUR CONTROL.
ALL THINGS BEING EQUAL, THEY STILL TEND TO -- THEY HAVE THE SAME FLUCTUATIONS ON CANADIAN PRICES ON WOOD ON THE NORTH SIDE TO SOUTH SIDE.
IF IT'S A DIFFERENCE MAKER COULD BE THE IMPACT FEE THAT'S DRINK DOWN TO A LEVEL THAT MAKES SOMEBODY MAKE THAT DECISION.
>> WE FEEL WE'RE THERE NOT BECAUSE OF WANTING TO CREATE BETTER GROWTH ON THE SOUTH SIDE BUT FRANKLY BECAUSE IT'S MORE COST EFFECTIVE FOR OUR SYSTEM IF YOU BUILD ON THE SOUTH SIDE BECAUSE THERE'S LESS IMPACT ON THE SYSTEM.
>> SALDANA: BECAUSE YOUR STATEMENT ABOUT THE WATER BEING IN A CERTAIN AREA.
IF YOU'RE TRYING TO GET TO THE SEWER PLANT, GO NORTH RATHER THAN SOUTH.
>> THOSE OF US FROM THE SOUTH SIDE, DISTRICT 3, YOUR DISTRICT.
WHEN I REPRESENTED DISTRICT 119, ALL OF THAT STUFF FLOWS DOWNHILL AND THAT'S JUST WORTH TAKING ADVANTAGE OF GRAVITY.
IF YOU LIVE ON THE SOUTH SIDE,
[00:40:01]
YOU HAVE LESS IMPACT, LESS PIPE THAT YOU USE, LESS PRESSURE ON THE SYSTEM THAN IF YOU THRUSH THE TOILET IN THE DOMINION.>> SALDANA: I WOULD HOPE THAT YOU MIGHT BE A PARTNER AT THE TABLE.
COUNCILMAN BROCKHOUSE AND I LOOK AT AN AREA WHERE WE WANT TO SPUR DEVELOPMENT ON MILITARY DRIVE AND HIGHWAY 90 THAT THERE'S POTENTIAL BUSINESS OPPORTUNITIES WHERE WE WANT TO MAKE EVERYTHING AVAILABLE FOR THEM E. EDUCATING THEM ON THE FACT IT EXISTS WE WOULD LOVE TO HAVE YOU ON THE TABLE TO TALK ABOUT THAT.
>> WE WOULD, AS MENTIONED THERE'S THAT IMPACT FEE MENTIONED.
I BELIEVE THE AREA IS IN THE ICRIP ZONE.
>> SALDANA: WE'LL THROW EVERYTHING WE CAN AT IT.
THOSE AREAS AND OTHERS THAT WE WOULD LIKE TO SEE MORE DEVELOPMENT.
NOT FORCE IT BUT CERTAINLY INCENTIVIZE IT.
WE APPRECIATE YOUR HELP WITH THAT.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN SALDANA.
>> PELAEZ: NOT MANY QUESTIONS.
CAN YOU WALK ME THROUGH THAT PIPELINE.
IS THAT GOING TO GO THROUGH ANY OF THE MILITARY BASE?
THIS WAS RIGHT BEFORE THE HOUSING COLLAPSE -- OVERALL ECONOMY COLLAPSE WHERE DEVELOPERS WANTED TO BE ABLE TO DEVELOP IN THAT AREA, BUT WE WERE NOT NECESSARILY PLANNING TO, SO WE REACHED AN AGREEMENT WITH THEM, A PRIVATE-PUBLIC PARTNERSHIP WHERE THEY AGREED TO PAY FOR THE DESIGN OF ALL -- THERE'S ABOUT EIGHT DEVELOPERS THAT PAID FOR THE DESIGN AND WE PAID FOR THE CONSTRUCTION PIPELINE, 96 INCH DIAMETER THAT ESSENTIALLY WILL CARRY -- CAN CARRY SEWAGE ALL OF THE WAY FROM THE FAR WEST SIDE DISTRICT 6, EVEN BEYOND THAT, ALL OF THE WAY TO THE WASTE WATER TREATMENT PLANT.
>> SALDANA: THIS IS NOT GOING TO COVER THAT CITY SOUTH MANAGEMENT AUTHORITY AREA, THAT NEVER REALLY AMOUNTED TO MUCH, RIGHT?
>> IF IT DOES DEVELOP IT WILL SERVE THAT AREA, YES.
>> PELAEZ: THE IMPACT FEES THAT WE WERE TALKING ABOUT EARLIER, ARE THOSE EARMARKED FOR SPECIFIC PURPOSES OR GO BACK INTO THE GENERAL --
>> PELAEZ: THEY ARE EARMARKED IN THE SENSE IT HAS TO BE FOR CAPITAL COST, AND THOSE ITEMS THERE ARE THE ONES THAT ARE PAID FOR BY THE IMPACT FEES.
>> PELAEZ: SO, ONE OF THE THINGS THAT MAKES IT HARD FOR US IS EVERYBODY'S AN EXPERT ON WATER AND EVERYBODY'S AN EXPERT ON WATER POLICY AND EVERYBODY IN SAN ANTONIO KNOWS HOW S.A.W.S.
SHOULD RUN AND HOW YOU GUYS SHOULD SPEND YOUR MONEY AND EVERYBODY IS AN EXPERT IN TRAFFIC IN THIS TOWN.
EVERYBODY IS AN EXPERT IN ENERGY GENERATION AND ALL OF THAT.
EVERYBODY'S AN EXPERT ON CLAM CHOWDER IN BOSTON.
BUT I HAVE A -- THE DIFFICULTY WE HAVE GOT IS EXPLAINING THESE VERY, VERY SO FISTY KUWAITED CONCEPTS, RIGHT, TO OUR PROPERTY OWNERS OUT THERE.
THE BUSINESS COMMUNITY, THE DEVELOPER, I THINK BECAUSE IT'S THERE, AND THEY ARE IN THAT BOWL OF CLAM SHOULDER, THEY ARE IN THAT SOUP SWIMMING WITH YOU, THEY GET IT.
BUT IF MY RESIDENCE, RIGHT, ALL THEY KNOW IS THEY TURN THE FACET ON.
CLEAN WATER COMES OUT AND THAT'S IT.
THAT'S THE BEGINNING AND END OF IT, RIGHT? AND THEY KNOW THAT THEY PAY THESE RATE, AND TO THEM, IT'S JUST ASTRONOMICAL AND TOO HIGH AND THIS REALLY HELPS THESE COMPARISONS BETWEEN OTHER CITIES, RIGHT THE DALLAS FT.
CAN I IMPOSE UPON YOU TO GET TO ME, A BREAKDOWN OF HOW THIS BREAKS DOWN IN OTHER SIMILAR LI SIZED CITY IN SAN ANTONIO, RIGHT? SO IF WE LOOK AT THE OTHER CITIES THAT HAVE THESE, YOU KNOW, OUR PROFILE OF POPULATION, LIKE JACKSONVILLE HAS 1.2 MLG PEOPLE IN IT.
LIKE WHAT'S THEIR WATER COST, BECAUSE I THINK THAT WOULD HELP ME ALSO SORT OF SHOW THEM THAT WE'RE NOT JUST
>> WE'LL GET THAT INFORMATION.
>> MAYOR NIRENBERG: COUNCILMAN BROCKHOUSE
>> BROCKHOUSE: THANK YOU, MAYOR.
ON SLIDE 7 IT STATES 7 3 PERCENT OF THE MEDIAN HOME PRICE IN SAN ANTONIO IS IMPACT FEES.
SO, I JUST KIND OF MAKE SURE I GET IT ON THE RECORD A LITTLE ABOUT IT'S NOT JUST 3 PERCENT.
[00:45:01]
WHAT MA REALLY MEANS AND EQUATES TO TO A PROPERTY OWNER, BECAUSE THESE FEES ARE ASSESSED AND DEVELOPMENT, OR DEVELOPER, THEY ARE NOT GOING TO EAT THE COSTS OUT MUCH THE GOODNESS OF THEIR SOCIAL HEART.THEY'RE GOING TO PASS THE COSTS ON TO RESIDENTS WHO ULTIMATELY END UP PAYING THE FEE HERE AND 6 -- 3 PERCENT, LET'S SAY ON MEDIAN HOME PRICE, $6,000 TO $7,000 IN SAN ANTONIO, IT'S GOING TO EQUATE TO AN ADDITIONAL 30 TO 50 BUCKS A MONTH ON SOMEONE'S MORTGAGE PAYMENT DEPENDING ON THEIR INTEREST RATE.
I JUST WANT TO BE VERY CLEAR, WE ASSESS THESE FEES AND THERE ARE LONG-TERM RAMIFICATIONS TO THE RESIDENT FOR THESE FEES.
WE MAY THINK WE ARE USING IT AS A TOOL TO STUNT OR CHANGE DEVELOPMENT PATTERN IN SOME AREAS OR ENCOURAGE IT IN SOME CASES BUT WHAT WE'RE REALLY DOING IS PASSING ON ADDITIONAL COSTS THAT THE HOME OWNER, RESIDENT IS GETTING THOSE COSTS AND THEY ARE PAYING IT EVERY MONTH.
WHETHER YOU'RE IN A HABITAT HOME, OR BOUGHT OUT IN THE DOMINION, YOU'RE EATING THAT FEE EVERY MONTH AND, BY THE WAY, 30 TOO 50 BUCKS IS OFTENTIMES THE DIFFERENCE BETWEEN SOMEONE QUALIFYING FOR THE MORTGAGE AND NOT QUALIFYING FOR THE MORTGAGE.
I'VE BEEN IN THE REAL ESTATE BUSINESS BEFORE.
I CAN TELL YOU THAT DIFFERENCE IN PAYMENT WILL PUSH PEOPLE OUT OF AFFORDABILITY ITSELF THAT 30 TO 50 BUCKS.
I JUST WANT TO MAKE SURE I EXPLAIN, IT'S EASY TO SAY 3 PERCENT.
THAT'S NOT THAT BIG A DEAL BUT WHEN I YOU REALLY THINK HOW IT QUANTIFIES INTO SOMEONE'S PRINCIPLE INSURANCE, TAX, WHAT THEY'RE PAYING EVERY MONTH, BECAUSE WE'VE ASSESSED ADDITIONAL FEES IN AN ERTZ TO CONTROL POLICY THERE'S A IMPACT TO A RESIDENT THAT NEEDS TO BE ACCOUNTED FOR.
THEN YOU SAID, I FALL ON THIS SIDE OF RELAXING THESE IMPACT FEES SO WE CAN SPUR DEVELOPMENT AND TREATMENT.
WE HAVE TO CREATE MORE ROOF TOPS AND WE'RE CONSIDERING STRENGTHENING THE IMPACT FEES.
BUT I THINK YOU CAN RELAX THE IMPACT FEES TO -- WE CAN TARGET IT TO CERTAIN AREAS OF TOWN.
BUT WE HAVE TO SPUR DEVELOPMENT INTO MULTIPLE AREAS ACROSS TOWN.
YOU SAID THE COST OF GROWTH -- LET ME WRITE DOWN WHAT YOU SAID EXACTLY.
YOU SAID YOU HAVE TO RAISE THE RATES 1 PERCENT OR THE RATES WOULD HAVE TO GO UP TO COVER THE IMPACT FEES.
THAT'S NOT NECESSARILY TRUE, CORRECT? JUST BECAUSE YOU'RE ELIMINATING IMPACT FEES OR REDUCE THEM DOESN'T MEAN IT NATURALLY EQUATES TO A RATE INCREASE, IT EQUATES TO A COST REDUCTION SOMEWHERE IN THE SYSTEM NOT NECESSARILY A RATE INCREASE TO THE HOME OWNER, RIGHT?
>> IT'S A CLASSIC ISSUE THAT YOU ALL GO THROUGH, IF YOU'RE GOING TO CUT HERE, IF YOU GET LESS REVENUE FROM YOUR CONSTITUENTS, IF WE GET LESS REVENUE FROM THE RATE PAYERS WHICH INCLUDES DEVELOPERS, WE ARE GOING TO HAVE TO ADD SERVICES OVER HERE, IF YOU DON'T WANT TO HAVE A CORRESPONDING --
>> NOT NECESSARILY SERVICES, BUT COSTS.
SOMETHING IN THE SYSTEM IS GOING TO HAVE TO HAVE A REDUCTION --
>> BROCKHOUSE: TO COVER IMPACT FEES.
JUST BECAUSE WE ELIMINATE OR RELAX IMPACT FEES DOESN'T EQUATE TO A DIRECT INCREASE.
I THINK IT WAS 1 PERCENT OVER FIVE YEARS TO COVERAGE IMPACT FEE.
I THINK SOMEONE SAID I SAW IN ONE OF THE SLIDES.
1 PERCENT HAS TO GO UP OVER A FIVE YEAR PERIOD.
WE DIDN'T BAT AN EYE WHEN WE RAISED IT 12 PERCENT OVER THE NEXT TWO.
I THINK WE'LL BE FINE LOOKING AT POSSIBLE WAYS TO ELIMINATE AND REDUCE IMPACT FEE COST TO SPUR DEVELOPMENT WHILE FINDING OTHER MEANS AND METHODS IN THE SYSTEM TO OFFSET THE COST.
I'M NOT SAYING IT'S A RATE INCREASE I'M SAYING YOU THERE'S MULTIPLE AVENUES FOR US TO LOOK AT, FINDING WAYS TO RELAX THESE FEES.
WHEN I'M LOOKING AT IT I SEE FROM A POLICY PERSPECTIVE THE HIGHER REACHED GOAL IS TO CREATE A ROOF TOP. THE HIGHER ADMIRABLE PUBLIC SERVICE GOOD IS MORE HOUSING NOT MORE JOBS.
WE HAVE TO FIGURE THIS OUT NOT JUST THE IMPACT FEE, I HAVE TO PUT ON THE TABLE WE NEED TO EXAM AS A COUNCIL HOW WE NEED TO REDUCE COVERS AND STOP PASSING ON THESE FEES TO HOMEOWNERS.
IT'S NOT ONE PERSON PAYING IT IT'S THE OTHER PERSON ON THE OTHER SIDE.
I WANT TO MAKE SURE WE ALWAYS EXAM THOSE COSTS AND REALIZE WHAT IT MEANS TO A RESIDENT WHICH EVER SIDE YOU LIVE ON.
THE CHARTS AND WHERE FEES ARE ASSESSED IS PRETTY EYE-OPENING.
WE ARE TRYING TO DRIVE DWROET INTO THE WEST SIDE, EF DISTRICT 5, DISTRICT 3.
WE'VE GOT A LOT OF OPPORTUNITIES TO DO THE GROWTH.
I THINK WE SHOULD CONSIDER REALLY MINIMIZING THOSE FEES OONTDZ SPURRING IT.
IF IT'S ONLY CERTAIN AREAS, I'M OKAY WITH THAT.
[00:50:01]
SYSTEMWIDE IMPACT OF ELIMB NATIONS FEES BUT HAVE THE IMPACT ON BIG AND HAVE REAL CO CONVERSATION ABOUT THE DEVELOPMENT COMMITTEE ABOUT HOW THOSE FEES ARE PAID AND PASSED ON TO THE RESIDENTS.WE HAVE GOOD ACTORS AND BAD ACTORS.
SOME FOLKS MAY PASS THAT FULL COST TO A RESIDENT THEN HAVE SOMEBODY LIKE HABITAT TO HUMANITY WHO IS DOING EVERY PENNY THEY CAN.
MAKE TRYING TO PUT A NEW DISHWASHER IN THE HOUSE OR AIR CONDITIONING UNIT IS BETTER THAN IT WAS SKRUFT OF SAVING DOLLARS OR FEES.
WE HAVE TO FIND WAYS TO SMUSH THE GROWTH.
I'M THANKFUL YOU CONTINUE TO COME UP AS A TEAM AND JAIME AND EVERYBODY COMES UP AND ANSWERS QUESTIONS.
I ASK YOU CONSIDER THE RESIDENT AND ACTUAL FEES AND GET OUT BEHIND PERCENTAGES AND TALK IMPACT IN PEOPLE'S LIVES.
I THINK WE DO THAT AS COUNCIL AND AS UTILITY WE'LL BE IN GOOD SPOTS.
>> MAYOR NIRENBERG: THANK YOU COUNCILMAN BROCK HOUT COUNCILMAN TREVINO.
YESTERDAY WE HAD A MEETING WITH THE DEVELOPER, IN LINE WITH THIS IDEA OF TRYING TO FOLLOW A LOT OF CITY'S PLANNING AND GROWTH WHEN YOU ASSESS THE IMPACT FEES, WE'RE TALKING ABOUT UNITS PRODUCED THAT -- HAS THERE EVER BEEN A DISCUSSION ABOUT THE KIND OF WORK THAT CERTAIN DEVELOPMENTS REQUIRE TO GET THEM UP TO A CERTAIN LEVEL, OR THAT ACTUALLY PROVIDE SOME PUBLIC OR SOME IMPROVEMENT TO THE PUBLIC INFRASTRUCTURE AND COULD WE USE THAT AS A MEANS TO INCENTIVIZE DEVELOPMENT IN CERTAIN AREAS.
I'M NOT SURE EXACTLY -- I BELIEVE THE DEVELOPER YOU MET WITH, MY STAFF WAS INVOLVED IN ALSO, I HAD THAT PARTICULAR ISSUE.
DID YOU WANT THAT PARTICULAR ISSUE ADDRESSED?
>> TREVINO: I'M JUST SPEAKING IN GENERAL BECAUSE I THINK THIS IS ABOUT THE ENTIRE CITY.
SO, WE DID SPEAK SPECIFICALLY ABOUT ONE ISSUE, BUT IT REALLY HAVE/TO US, WE'D LIKE TO HAVE A BIGGER DISCUSSION ABOUT HOW WE CAN EXPAND THE WAIVERS TO TARGETED AREAS, BECAUSE ANOTHER COST, AGAIN, AND LIKE MANNY SAYS, THERE'S PLENTY OF EXPERTS IN THE ROOM AND I WOULD SAY THAT THERE'S A LOT OF COSTS TO DEVELOPMENT AND ONE OF THEM IS INFRASTRUCTURE, AND UNKNOWN INFRASTRUCTURE AS WELL.
SOMETIMES IT'S VERY, VERY OLD, YOU'RE CURRENTLY DOING THAT BECAUSE OF THE DECREE, AND WE KNOW WE TRY TO SPUR ON MORE DEVELOPMENT IN CERTAIN AREA, IF WE CAN INCENTIVIZE FOLKS TO FIX THAT INFRASTRUCTURE WILL GIVING THEM A WAIVER, THAT COULD HELP SPARK GROWTH IN AREAS WHERE WE WANT THAT GROWTH TO HAPPEN.
>> THIS IS USUALLY IN AREAS LIKE YOUR PARTICULAR DISTRICT WHERE WE DO HAVE COMMON ISSUES WHERE A DEVELOPER COMES IN, WANTS TO DO SOME INPFILL KIND OF GEMT DEVELOPMENT.
THE INFRASTRUCTURE THAT HE NEEDS TO CONNECT INTO, RIGHT NOW WHERE WE ARE LOOKING AT THAT IS SOMETHING WE BECAUSE IT'S A CONDITION THAT NEEDS REPLACED AND WHO BEARS THAT COST.
INCENTIVES THAT WE ARE LOOKING AT, WE WANT TO BE INVOLVED IN WAIVERS THAT THIS INDIVIDUAL WOULD OTHERWISE GET.
>> TREVINO: I THINK THIS CAN SHAPE A LOT OF GROWTH IF WE CAN CERTAINLY LOOK AT AREAS THAT WE CAN COVER SOME OF THESE INCENTIVES, AS WE SAID BEFORE.
THESE ARE PEOPLE THAT ARE LOOKING FOR THESE MEASURES, SO THAT THEY CAN PRODUCE SOMETHING THAT THEY THINK IS GOING TO WORK WITHIN THEIR FRAMEWORK.
I THINK THIS WOULD BE AAA WORTHY CONVERSATION TO TALK ABOUT INCENTIVIZING AND PROVIDING WAIVERS, SO IT'S NOT JUST ABOUT UNITS, IT'S ABOUT WHERE THOSE UNITS ARE.
>> SALDANA: THANK YOU, PLAY YORE.
>> MAYOR NIRENBERG: THANK YOU COUNCILMAN TREVINO.
I WANT TO ECHO WHAT COUNCILMAN TREVINO SAID, WORKING TO ENSURE WE HAVE MORE AFFORDABLE HOUSING INFILL IN AREAS OF THE COMMUNITY THAT HAVE FALLEN OFF AND NOT AS DEVELOPED AS IT SHOULD BE.
WE HAD A CONVERSATION YESTERDAY WHERE WE WERE TALKING ABOUT COUNCILMAN OR COUNCIL PERSON GONZALES' DISTRICT SHE WOULD WELCOME MORE HOUSING IN THAT
[00:55:01]
DISTRICT EVEN IF THEY WERE SHORT-TERM RENTALS.THERE'S CERTAINLY AREAS IN THE COMMITTEE THAT NEED MORE AFFORDABLE HOUSING.
I JUST WANT TO MAKE SURE THERE ARE THE INCENTIVES THROUGH THE IMPACT FEE WAIVERS THAT ARE GOING TO BE AVAILABLE IN THOSE COMMUNITIES.
SOMETHING THAT I HAD HEARD THAT CONCERNED ME WAS THAT SOMETIMES THERE ARE OLDER AREAS WITHIN THE CITY THAT HAVE BEEN RESIDENTIAL FOR MANY, MANY YEARS, BUT THE RECORDS MAY NOT BE ACCURATE ENOUGH TO HELP IDENTIFY THAT THERE ACTUALLY WAS A HOUSE THERE AT ONE TIME, THAT THEY WERE RECEIVING SERVICE, AND SO IT'S TREATED AS IF THERE NEVER WERE ANY SERVICES THERE, AND SO THEY ARE PRETTY HIGH IMPACT FEES TO DEVELOP THOSE PARTICULAR PIECES OF PROPERTY.
IS THAT ACCURATE THAT THERE ARE AREAS THAT WE DON'T HAVE THE RECORDS FOR VERY MUCH ANYMORE, AND SO WE ARE CHARGING AN IMPACT FEE WHEN MAYBE THERE ARE SEWER LINES UNDERNEATH, THERE ARE WATER LINES, WE JUST CAN'T IDENTIFY BY PAPER?
>> WE USUALLY HAVE A DEFAULT SITUATION WHERE, IF IT'S AN EXISTING NEIGHBORHOOD AND THERE'S SOME INFILL DEVELOPMENT GOING ON, CHA CHANCES ARE THERE WAS A STRUCTURE THERE.
THERE WAS A HOME THERE AT ONE TIME AND THEN NO IMPACT FEES SHOULD BE ASSESSED.
SO INFILL DEVELOPMENT THAT YOU'RE TALKING ABOUT THAT'S VERY IMPORTANT FOR DISTRICT 5, FOR SHIRLEY GONZALES AND OTHER INNER CITY AREAS, IF IT'S REHABILITATING HOME, IF IT'S BUILDING HOMES IN AN EXISTING NEIGHBORHOOD THERE'S NO MORE IMPACT FEES TO BE PAID.
THEY'VE ALREADY BEEN PAID PREVIOUSLY OR A TIME NO IMPACT FEES HAVE BEEN PAID, THEY ARE STILL CONSIDERED TO HAVE BEEN PAID ALREADY.
>> COURAGE: IF THERE'S QUESTION IN AN AREA AND THERE ARE NO RECORDS AND A FEE IS REQUIRED IF IT'S PROVEN LATER CAN IT BE REIMBURSED OH, YES, WE FOUND THEM LATER ON ONCE THE HOUSE HAS BEEN BUILT?
>> THAT WOULD BE A QUESTION FOR OUR LEGAL COUNCIL.
COME UP TO ME BECAUSE WE ARE SUPPOSED TO CHARGE IMPACT FEES AND AT A CERTAIN POINT YOU DON'T WANT THE DISCRETION TO BE USED BY CERTAIN INDIVIDUALS.
THE DISCRETION ON WHETHER TO WAIVE THEM OR NOT, FOR EXAMPLE, IS THE CITY'S.
IT'S UP TO MY DISCRETION TO SAY YES OR NO THAT I BELIEVE THROUGH INFORMATION GIVEN IT ME BY STAFF THAT THERE WAS OR NOT A HOME BEING BUILT THERE.
THE FEW TIMES THAT COME TO MY ATTENTION, THE POSITION WE'VE TAKEN IS THAT DON'T CHARGE THE IMPACT FEES.
WHICH IS DIFFERENT FROM WAIVING.
>> COURAGE: I NOTICED ON THE CHART IT SAYS OVER THE LAST FIVES YEARS S.A.W.S. XWLSELECTE MORE THAN $259 MILLION IN IMPACT FEES.
MY FELLOW COUNCILMAN SAID WE SHOUPTD HAVE IMPACT FEES.
WHAT WOULD YOU HAVE DONE IF YOU DIDN'T HAVE $294 MILLION OVER THE LAST FIVE YEARS? HOW WOULD THAT IMPACT OUR RATES?
>> TO TAKE INTO CONSIDERATION COUNCILMAN BROCKHOUSE'S COMMENTS YOU HAVE TO CUT SERVICES, CUT COSTS DEAL WITHOUT $54 MILLION IN REVENUE OR RAISE THAT REVENUE SOMEWHERE ELSE.
SO THE NEXT BULLET ON THERE IS WE WOULD HAVE HAD TO RAISE REVENUE 1 PERCENT PER YOUR DURING THAT FIVE YEAR PERIOD.
>> COURAGE: TO MAKE UP THE 2.94 MILLION?
>> COURAGE: THANK YOU NO QUESTIONS.
>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.
THANK YOU VERY MUCH FOR THE PRESENTATION, ROBERT.
WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.