Speaker 1: On the record is brought to you by Steve and Adele do follow Speaker 2: San Antonio is a fast growing fast moving community with something new happening every day.

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Speaker 1: Hi everybody.

I'm Randy Beamer.

And thank you for joining us once again for this edition of on the record, the last week of January, lot to talk about in the news this week, first of all, joining us LFA and the mayor, Ron Nurenberg.

Thank you for being with us.

She just came back from Washington, DC and quickly tell us what you did there.

What, what did you find out about money coming to San Antonio?

Speaker 2: We took a small delegation up there, uh, to really start working with the administration on multiple levels to prepare San Antonio for, uh, the bi-partisan infrastructure law, which is a historic investment by the federal government and to local communities on everything from airports and roadways to parks and public health.

So, uh, we went up there to present our plan in terms of how we've structured, the way we're going to go about this money.

Uh, we were working with other mayors and cities as well.

Uh, we got great compliments from, uh, Mitch Landrieu who has been appointed by the president as the infrastructure coordinator for the entire country said, we're the best city, uh, best prepared city in the country to start going after.

Speaker 1: So a good sign in terms of how much money would be coming to San Antonio quickly because you have plans for the projects.

Well, Speaker 2: We do.

And so we're trying to leverage everything.

We've got a lot of projects going on for infrastructure and growth and economic recovery.

And what we want to do is make sure that we're prepared where the departments talking to their counterparts in DC to leverage everything so we can extend the investments that we're making to get the most for our money.

Uh, there's uh, projects from in basically every department.

So we'll be working with them through for the next three to five years, but this is a historic Speaker 1: The opportunity want to turn now to a project that's in the works right now that looks to be suddenly a battle with the state, even though it's been a war in the works for a number of years, and that could be the battle of Broadway.

The city is working on this massive $42 million, some project from downtown on Broadway, all the way up to Alamo Heights.

But this week you found out what, Speaker 2: Well, it's a fully funded plan and in 2017 voters approved it by over 70%.

And this has been in the works for a number of years, as you said, with a lot of local debates already now settled, but we had to wait a number of years for us to compile this turnback proposal with the state that granted us this portion of to start Speaker 1: Working because it was technically a Speaker 2: State highway and the state went through a big process several years ago to give cities all across the state roads that they were tasked with maintaining because they couldn't do that anymore.

So we took it over on Broadway.

We began this redevelopment project.

We are now hundreds of millions of dollars in terms of public sector and private sector investment into it.

And on Thursday, they're going to vote to basically resend the order that gave San Antonio.

Uh, that road was the 24 to Speaker 1: State transportation commission.

Speaker 2: TxDOT has on their agenda, a vote to rescind the order, basically pretending that the, all those deals that were made back, uh, to give San Antonio the authority to do these works and spend this money.

Uh, it didn't happen, Texas, Speaker 1: Basically.

They're going into the minutes of the meeting that have been approved and then since amended.

So this meeting six years ago where the state said, okay, you can have this, this is what we're going to do.

That's what they're technically hanging.

Speaker 2: Yeah.

And I see you struggling try to ex trying to explain it same here and everyone else that's involved in this, uh, it's truly absurd what they're doing and proposing Randy.

And again, we have a roadway project that has been years in the making lots of money and time being spent by the public, by the private sector.

We want to continue that roadway project because it's a main artery into downtown Broadway corridor is an important, uh, business, residential commercial corridor for the entire city.

And being able to complete that is extremely important.

We've got businesses all along that corridor already suffering just through the basic construction.

We can't afford political delays.

Now Speaker 1: Change this and not just projects like this in San Antonio, but across the state.

Because Speaker 2: Part, as we understand, have a statewide move to essentially prevent any local communities from, um, reducing lanes, even though traffic, engineers and studies would, would suggest that's what to do to add elements like pedestrian access, wider sidewalks, bicycle lanes.

That's the kind of thing that the San Antonio public voted on.

And they're saying essentially that if it's a state funded or state roadway at any time, you cannot do that.

You can only expand link capacity.

Well, we know that that's not what we need to do in certain areas, not every area, but that's not what we want to do in Broadway.

Uh, it also is Speaker 1: Broadway because there's, we battled over that here Speaker 2: Is that's right.

And it's it's, uh, does not, uh, it detracts from safety.

Uh, it helps.

I mean, it detracts from being able to build a place along Broadway with all these shops in residential communities.

Now having access to the street street cafes or wider sidewalks, bicycle lanes, which we've been trying to build for years, Speaker 1: The four lanes, uh, unlike Houston street, where years ago they took it down from four lanes to two.

This would still be four lanes from six.

Is that right?

Speaker 2: The upper section of Broadway.

That is correct.

Um, now the, the lane configuration has changed as you go further into downtown, but that's, again, all part of those public discussions, thousands of hours of meetings and engineers pouring over this stuff to get this project, right.

We're now into the development stage and mark parts of it is already being dug up as you know.

So the last thing we need now is to have, uh, you know, political gamesmanship or whatever.

This is this absurdity that is now the state trying to take over the, you know, Speaker 1: As I understand it, somebody complained to Bruce bug who is from San Antonio on the transportation committee and said, this is not a good thing.

And so suddenly after six years is like that, do you know who that is?

Speaker 2: I can't speculate as to how this began.

I know there's some other skirmishes going on in other cities.

Uh, obviously, uh, Bruce bug has been a great San Antonio and friend to San Antonio.

He is the chairman of tech stock.

We just want them to pull off that, pull down that vote.

Let's talk about what they're trying to accomplish and let's work together as we have with textile over the last six years in this, Speaker 1: But could this like suddenly throw a wrench into everything, even if they say, okay, we'll work with you.

This could be a battle for months.

If not years, Speaker 2: Potentially effectively, it would terminate what's going on at midstream on Broadway.

That's, that's effectively what would have.

Speaker 1: And right now there's a controversy over a bond plan that would take $5 million and give it to the sunken garden project, a massive renovation.

What do you think's going to happen there?

Well, Speaker 2: You know, I, I think number one, San Antonio, uh, the community deserves world-class places and venues.

And we can do that in a way that that meets the community's needs and also addresses the concerns.

I've seen a lot of information out there that I think is a little bit skewed from what's actually taking place in sucking garden theater.

This is a plan that's been in the works that people have discussed.

And we've had feasibility studies funded by the city for years, two decades.

We've been hearing about a restoration in the second garden theater.

This is one of the crown jewels of the San Antonio park system, Brackenridge park.

And in the middle of that park is a historic theater that is in decay.

And we need to bring that neighborhood Speaker 1: Or worried about traffic and sound, which you've said that Speaker 2: As, as we would expect.

And so what you do with the concern is you try to address it.

And I think that that's what the Councilman and others are trying to do.

What we don't want though, is to lower our sights about what we're trying to create.

Speaker 1: And this would be from the bond 5 million out of a much larger 62 million.

So the money a lot of money was coming from somewhere else.

Do you worry that this one small slice of that 270, some million for parks in the bond issue could affect the vote for that?

Just because it's getting so much attention.

I know, Speaker 2: Um, number one, that $5 million, if it is in the bond is going to be over a lot of discussion, those final plans and management of the park and all that is going to be settled.

Uh, everyone is cognizant and wanting to address the concerns of the neighbors in that area.

This is mind, this is a park and a theater that in, in its heyday, when I was in school, I went to go see rock concerts there.

Uh, this is a park that, uh, that should be, uh, well-maintained, it's a city owned venue.

It's a publicly owned venue that if brought back to life can serve the community well, and also be cognizant of the setting that it's in, in a historic park with green space, all around that, surrounded by neighborhoods.

We want to take care of that well, and be cognizant of those neighbors concerns.

This is also a park and the theater that backs up to 2 81.

So there's a lot of different elements of noise and things like that that have to be addressed.

But the point is let's have our sights high on, on making sunken garden, a, a wonderful place for the San Antonio community, a place that is cognizant of its surroundings, but, but also addresses the concerns of those neighbors we can accomplish.

Speaker 1: All right.

Well, thanks.

So mayor Ron, Nurenberg going back to his Trinity university days going to concerts.

They're like what?

Poison Speaker 2: Def I think it was grand funk railroad Randy.

Oh, Speaker 1: That's all right.

One of my favorites.

Thanks mayor.

Ron.

Nurenberg appreciate you coming in.

Great to see you.

Right.

Um, it was the most popular pocket in the city of San Antonio.

Um, and this is an amenity that sits inside of the pocket.

We want to bring back the amenities that historically, And that is Nick Hollis of the Brackenridge park Conservancy, talking about the sunken garden theater project and why people here should support it.

Joining us right now is Councilman Mario Bravo of district one.

Thank you very much for coming in.

Uh, you held a town hall meeting virtually this week on this sunken garden theater project and heard from, they call us and people supporting it.

And from some of the river road, people who, uh, are concerned about traffic and noise, where are you right now after this meeting?

What do you think about this being part of the bond issue that's coming?

Speaker 2: Uh, thank you, Randy.

You know, we had a huge turnout.

It was really exciting how many people showed up for that town hall meeting.

And what we heard from the community is they want more opportunity for public input.

Um, there are still concerns that have not been addressed yet.

And so where I am right now is I'm looking at sunken garden theater, being one project of many proposed projects on the on bond proposal.

And the bond is going to move forward with, or without this project.

So how can we create some space for more, uh, more dialogue with the community to be able to address their concerns?

Um, what we heard from the community was that they are very there's consensus that sunken garden theater needs to be renovated.

There's not consensus right now on what should the size and scale, uh, the size and scope of the project look like.

And so I'd like to be able to give people more time for some dialogue there.

No, Speaker 1: Originally the Conservancy had asked for this project for, I believe 25 million, the citizens bond committee, or the city staff had cut it down to 10 or 15.

And now it's down to $5 million as part of this bond issue.

When you finalize that in a few weeks, you think that'll be part of it.

Speaker 2: Well, uh, what I'm proposing now is that the citizens bond committee said let's do 5 million.

So I'm saying let's leave the 5 million in there, but let's continue to work with the public and have conversations if we can get to consensus on, um, what that, what the scope and scale of this project should look like for sunken garden theater, then that 5 million will go towards renovations of sunken garden theater.

If we don't, then that 5 million will go to park renovations in Brackenridge park.

Speaker 1: And now Nick Carlos, and the presentation from the park, uh, they say they have addressed concerns about parking, that there's so many spaces within a third of a mile they're yellow.

And on the other side of 2 81, and also about sound that the roof of this will there'll be a wooden roof that will dampen the sound.

They have damn dampening things.

What, what did you think of those arguments?

Well, Speaker 2: Uh, I think the sound issue is the easiest one to address with technology.

I think the community still wants to hear more about how traffic concerns are going to be addressed, how parking concerns are going to be addressed.

And that's why we need more time for dialogue.

And so that's why I'm proposing that the Bond's going to move forward with, or without this project.

So in order to do that in order to give us flexibility and be able to have more time for dialogue with the community, let's keep the 5 million in there, but write the bond language open-ended so that if we get to consensus, then it can be, it can go towards renovation of the sunken garden theater.

If we don't it's general park improvements.

Speaker 1: Yeah.

You don't want to controversy over one out of 84 park bond things to kill that.

Speaker 2: Well, right.

We don't want to jeopardize the bond.

We want the parks bond, um, portion of the bond to pass.

And, and typically parks has the highest support.

So I don't know that it's necessarily in danger, but we want to be respectful of the neighborhoods around there and make sure their voices are heard and Speaker 1: About a time, but that 5 million, if it doesn't go to the sunken garden theater project, you said would go to overall and Breckenridge park or could just Speaker 2: General park improvements.

Right?

And if the Bracken Raj Breckenridge park Conservancy, doesn't raise their end of the deal on time on financing, then they don't get any of this money either.

So Speaker 1: Well, thanks for explaining this to us or appreciate it.

Now you've got a busy week with Hemisfair and all Mario Bravo, Councilman district one.

Thanks.

Thank you.

The musicians with the San Antonio symphony are still on strike, but there has been a meeting since we last talked about this late last fall.

Joining us now is Corey coward, who is executive director of the San Antonio symphony.

Now late last fall, we had Mary Ellen Gorian, who is a musician representing the musicians, talking about why they're on strike.

We're about halfway through what the season would be now.

Um, no concerts, where are you right now?

You have met with them.

They've come back.

How close are you to settling this?

So, Uh, you're correct on about that kind of halfway through the season are, as many of your viewers know that our season typically operates on kind of an academic year.

So September through late may or June, and we have had meetings with the union, uh, and with, with the musicians in, in November.

And then again in early January and in the meeting that we had in January, uh, the musicians did make a verbal proposal, uh, which was to basically, um, return to work under the, uh, the terms of the, the original CBA that was signed in, in the summer of 2019.

Uh, we subsequently asked for that in writing, we did receive kind of the proposal in writing about a week later, and we've been working to find times to meet again, to continue the negotiation process.

And we have had, uh, development, uh, fairly recently, even last, last night, I think is when we're able to confirm, um, that where we have been asking to have federal mediators or any mediator, any third-party really involved in, in our negotiation process, um, that we were able to bring back on, uh, federal mediators, that to help in our next meeting.

And we're working to set up meeting times that are hopefully in, in, in early to mid February, but now Time and all the public things we've heard is that the musicians think that you basically have access to more money or should do more fundraising.

And you say you don't have enough money, um, to keep the, it was 72 musicians in the past, we wanted to have 42 full time.

I have something like 26 part-time and how close can you be?

Cause it seems like you're pretty far apart on We're.

I mean, we're, we're far apart and this is also, um, it it's a compounding from our history that this, I mean, I think it's well reported, uh, for, uh, that the, the, the financial challenges at the San Antonio symphony has had both over the last, you know, 10, 20, 30 plus years.

And we have been historically an organization that has been just right on the edge of, of are we going to make a season?

Are we not going to make a season?

Um, in fact, one time when I, when a board member, uh, was taking me to meet with one of our major donors for the first time, and this was an individual that I may have had brief conversations with in the lobby before a concert and longtime subscriber, long time, significant donor in his very first question to me was, are you going to make it through the season?

Um, is it's kind of where I think a good indicator of where we've been and with, um, our, the, the challenges that were brought on by the pandemic, by COVID of any of the, the real, um, growth opportunities that we had set up and planned up a plan for, uh, the second half of what was that 20 19 20 season, when everything was shut down, really killed pretty much all the momentum that we had.

And, um, so what we're coming back to is looking at, um, uh, what we've we for this year using, you know, getting everybody we could possibly have and all the best minds involved have a revenue budget of around $5 million, where historically we may have been at, you know, six and a half, seven, seven, and a half million dollars.

Um, and the most, I guess, recent indicator was the year that we had prior to COVID.

What was that?

Uh, the 18, 19 season, uh, where we had, we had about $8 million in overall expense and about $6 million in revenue.

So what were the challenge that we have right now is that we have this, what is from six to $5 million, which is basically an 18% reduction in what our revenue is.

So we're running out of time, but when you have that a mediator come in, how long do you think that'll be before we have actual meetings?

Um, I mean, ideally we have the meetings scheduled in, and we know when there will be in the next, hopefully by the end of this week.

And then, uh, sometimes, you know, the lead time on this is a week to, you know, two or three weeks, Let us know.

Thank you very much for coming in with the latest on the San Antonio symphony, the musicians strike Corey coward, executive director of the symphony.

Thanks.

Sorry.

Thank you.

Couple of weeks ago, San Antonio city council approved a rate increase, and one of the reasons they did that, they were concerned about the bond rating for CPS, that it would be downgraded well this week, one of those bond rating companies went ahead and downgraded CPS energy's rating, and joining us to tell us everything there is to know about that is Greg Jefferson, who is a columnist and business editor, a restless city is your column Russell city of San Antonio.

And I liked that they express news, tell us about this bond rating, uh, issue and what it really means.

You, you did an article, not just on that, but on what it means for the future.

Speaker 2: Yeah, exactly.

And, um, bond ratings, the CPS energy has very strong bond ratings.

And one of CPS, one of their arguments for a rate increase heading up to the vote at city council in January 13th was we need this rate increase to maintain these strong, uh, credit ratings.

Uh, the idea being, um, if they don't get a rate increase, then Moody's Fitch S and P these are the major, major bond rating firms.

So they will cut a CPS, uh, rating on their debt, which would make it more expensive for CPS to borrow for every, uh, cut.

You get that's about a million bucks in additional, uh, interest Speaker 1: Expense.

And we're talking pretty high ratings anyway, like AA.

Speaker 2: Yeah, yeah.

AA, uh, AAA.

And yeah, the funny thing is, uh, so that was a big argument, uh, in favor of this rate hike of, you know, 3.8, 5%, uh, and city council in general.

Uh, most of the council members, uh, sided with that.

I mean, they, they saw it as a good reason voting for the increase just to maintain a CPS has strong credit rating, uh, less than two weeks after that vote though.

Uh, they approved it eight to three.

Uh, this rate increase, uh, less than two weeks later, uh, Moody's investor service, uh, cut their ratings for CPS by one notch by one notch.

And we should say, um, you know, it's important to note that, uh, S and P and Fitch the other two major, uh, credit rating agencies, they had already cut, uh, the ratings on CPS.

This was back in the spring, right after a winter storm URI in February.

It was part of, you know, basically they were, if you were a, if you were a Texas utility, your ratings work cut.

Uh, so that's what happened with Fitch and S and P Moody's at the time did not do that.

So now they're kind of catching up to their peers.

So on Monday, they, they cut CPS as a rating by one notch.

However, they did say, uh, okay, we're cutting your ratings now, but our outlook for CPS energy is good.

Uh, if I can Speaker 1: Push that up, right.

They Speaker 2: Did, they did, it was, yeah, their outlook was negative, which meant that, you know, if things don't improve with CPS and its preparedness for, you know, extreme weather, uh, we're gonna really cut your ratings.

So they did that.

They only cut it by one notch.

And now they're saying, okay, well, we're taking this negative outlook and it's now stable.

So we think you're, you're on relatively good footing with your rate increase.

You're kind of, you know, you'll be looking for a permanent CEO soon.

Uh, you know, there's a lot to like about CPS at this moment.

So it's it's Speaker 1: Right now.

And looking ahead, the next battle or issue at CPS is restructuring the rates businesses Speaker 2: A little higher.

And so this was, this was a theme throughout the city council meeting on the 13th.

A number of council members said, okay, well, some of them said, okay, we will approve this rate increase because we feel like CPS needs it.

However, uh, we consider the rate structure as CPS unfair.

So, uh, they feel like business, small businesses and residents are kind of paying the outside share of the overall bill and that heavy industrial users aren't paying their fair share.

And that would be, you know, like, uh, HEB and Toyota, large companies like that, that they get, uh, you know, they get, you know, a couple of council members referred to the Ms. Sweetheart deals, uh, with CPS.

And, you know, they're, they're not paying the same rates, they're paying lower rates than, than these other company or, uh, other customers and council in general.

I think it's safe to say felt that was unfair.

You know, you, you heard the word inequitable a lot, and they extracted guarantees from Rudy Garza, who is a CPS is, uh, interim CEO to, to restructure, you know, uh, Speaker 1: But there's going to rates, that's going to take awhile.

It will take, Speaker 2: It'll take about a year, um, Speaker 1: Which might be confusing to some people like, why can't you change that right now?

Their contracts with them?

Speaker 2: Yeah.

I mean, it's, you know, the, uh, rate advisory committee, which was just appointed last year, they're looking into the rate structure that they're kind of studying, it's hugely complicated.

Um, but really part of it has to do with San Antonio history, uh, when economic development officials in San Antonio and bear county traditionally have gone out to recruit a large employers, to bring them to San Antonio, either to move their headquarters here or to bring operations here, uh, cheap electricity and cheap water has always been one of their calling cards.

It's been a lure for, uh, outside companies.

And I think there's a lot of hesitancy to Jack up the rates on heavy industrial Speaker 1: Users.

That'll be the next battle.

That'll be Speaker 2: The next battle.

And I think it's going to be a big one.

Uh, Speaker 1: CPS will be in the headlines and you'll be writing about that for, Speaker 2: Of course, naturally, it's funny, it's hard to remember that, uh, until, uh, a year and a half ago, a year ago, CPS was relatively boring to cover and to write about, and now they're not there's oh, exciting.

They probably should have been more excited law, but Speaker 1: That's from a reporter's standpoint from a rate payer.

Speaker 2: Yeah.

Keep it, keep it cheap.

And I don't want to hear about it.

Speaker 1: Yes.

All right.

Well, thanks very much, Greg Jefferson.

Again, your column is restless city and you are a business editor as well as San Antonio express news.

Thanks for coming in and thank you for joining us for this edition of on the record.

You can see this show or others at dot org, and we'll see you next time.

On the record is brought to you by Steve and Adele do Duplo.