The Dilley City Council met for a marathon session on Tuesday, September 16, 2025, with lengthy items in executive session, lasting nearly six hours and stretching past midnight before adjourning after 12:00 a.m. The meeting covered a wide range of issues, from updates on the Dilley Immigration Processing Center and challenges in the city’s natural gas system to a new fire protection agreement and a heated debate over legal services.
1. Call meeting to order — 00:00:36
Mayor Alexandria Martinez-Inocencio called the meeting to order at 6:30pm.
2. Roll Call — 00:01:03
During the roll call, Mayor Alexandria Martinez-Inocencio, Councilmen Everardo Castillo Jr., Eric Aranda, Alicia Machado, Ray Aranda, and Rudy Alvarez, along with City Secretary Natasha Prado, and City Administrator Henry Arredondo were all confirmed present, with no absences recorded.
3. Pledges of Allegiance to the United States and Texas Flags — 00:01:53
4. Invocation — 00:02:30
City Administrator Henry Arredondo led the invocation.
5. Hold 2nd Public Hearing to discuss the Proposed Budget Fiscal Year 2025-2026 — 00:03:22
No members of the public or council spoke during the hearing.
6. Hold 2nd Public Hearing to discuss the Proposed Tax Rate for the Fiscal Year 2025-2026 — 00:05:25
No members of the public or council spoke during the hearing.
7. Citizens to be heard — 00:06:38
No citizens to be heard.
8. Consent agenda: Discuss/consider & act on the following item(s): — 00:07:17
A. Approve minutes of the August 12, 2025 – Regular Meeting
B. Review of City Bills
C. Approve employee incentives for the month of September 2025
Councilman Ray Aranda questioned two items on the city bills: a $250 charge to the county, which City Administrator Henry Arredondo explained was for jail cell space, and a payment to an ex-police officer who had been sent to training but has since resigned. The mayor clarified this was a reimbursement for training that was requested for payment.
Motion: Approve the consent agenda — Councilman Rudy Alvarez
Second: Councilman Everardo Castillo Jr.
Vote: 5–0 — Motion passes
9. Department Reports – (submitted for informational purposes only) — 00:12:03
A. Library Report — 00:12:08
B. Court Report — 00:13:33
C. City Secretary Report — 00:14:53
D. City Administrator Report (oral) — 00:18:34
E. Police Department Report — 00:22:30
F. Public Works Department Report — 00:25:10
G. Fire Department Report — 00:28:14
H. Engineering Report — 00:28:21
10. Information Update on Dilley Immigration Center by Jose Rodriguez — 00:33:09
Jose Rodriguez provided an operational update on the Dilley Immigration Processing Center*, which currently houses 512 residents including 52 adult males, 178 adult females, and 282 children representing 192 family units. The facility is fully operational with all five housing units open as of September 1st, though population had been hovering around 300 before recently increasing.
The center employs 590 of its 640 authorized positions, with current vacancies including records clerk, resident supervisor, chaplain, mental health therapist, and several medical positions. Residents have access to recreation, religious services, library with internet cafe, commissary, barbershop, medical care, visitation, courts, asylum services, food service, laundry, and education for minors. New playscapes were recently installed.
The average length of stay is about 10 days, creating a revolving door effect. The facility undergoes monthly audits by River Tech and US Advisors, with only minor administrative deficiencies noted. A Government Accountability Office audit focused on medical care quality was scheduled for September 23-25.
Rodriguez concluded by presenting a donation to the police chief for the annual National Night Out event.
*The detention center, once referred to as the South Texas Family Residential Center, “was re-missioned by Immigration and Customs Enforcement (ICE) to care for adults only,” according to the CoreCivic website.
11. Discuss/Consider & act on Delinquent Tax Collection report presented by Linebarger Attorneys at law — 00:39:30
📌12. Discuss/Consider & act on E3 Design/Build Contractors- Water Infrastructure Solutions — 00:49:54
Larry Jones, listed as “Business Development Expert” E3’s website , proposed solutions for Dilley’s water infrastructure challenges. Jones said his company partners with the “University of Houston College of Engineering’s Public Water Initiative.” *I’ve noted before that this blog is merely a recap of what was said in the meeting. A cursory google search yielded no results for a formal “Public Water Initiative” from the University of Houston. If you’re reading this and have information on the program, drop it in the comments…
Jones identified issues including high water loss, declining water and sewer revenue, and reduced well production due to scale buildup. The company offers “performance rebuilding” where projects are completed without upfront capital, paid through savings and increased revenue. Jones referenced other municipal projects.
Jones said the University of Houston would cover investigation costs, requiring only staff time from the city to gather information. The company would return with a menu of potential solutions and costs, with the city able to select options through the buy board process.
Motion: Allow E3 to explore and conduct investigation — Councilman Eric Aranda
Second: Councilman Everardo Castillo Jr.
Vote: 5–0 — Motion passes
📌13. Discuss/Consider & act on Gas Utility Ordinance by Jeff Snowden — 01:02:40
Jeff Snowden with CapEx Resources presented a natural gas rate study and ordinance for the city’s struggling gas system. The system faces significant challenges: operating revenues have grown less than 0.5% while personnel expenses increased 8% annually, creating a projected $57,000 deficit in 2025 that could grow to $173,000 by 2030 without rate increases.
Snowden identified major issues including severe unaccounted-for gas losses, with the city only selling 63% of purchased gas in 2024 compared to 85-89% in 2010-2011. He suggested the city has customers receiving free service, citing a similar case in Carrizo Springs where 58 customers were identified as getting minimal bills, including a McDonald’s that hadn’t received a gas bill in 20 years. Recovering this lost revenue could generate approximately $65,000 annually.
The city has lost 114 residential gas customers since 2010, dropping from 340 to 226 accounts. Average residential consumption appears unusually low at 1,110 cubic feet monthly compared to peer cities at 1,400-1,600, suggesting potential meter problems.
Snowden’s proposed rate increases are modest to avoid further customer departures: residential customers at 1,000 cubic feet would see increases from $23.12 to $25.33 in October 2025, with annual increases averaging $2.36 through 2029. Commercial rates at 20,000 cubic feet would increase by an average $18.45 annually.
Even with rate increases, the system would still face a $137,000 deficit by 2030, though reducing unaccounted-for gas and managing capital outlays could achieve self-sufficiency. The Railroad Commission requires costly pipeline replacements estimated at $21 million, creating what Snowden called an “unfunded mandate.”
Snowden recommended implementing late charges for gas service, connection fees, and conducting investigations to identify customers receiving unauthorized service, with potential to recover three years of back billings.
Motion: Approve Ordinance No. 25-16-09 implementing five-year natural gas rate increases effective October 1, 2025 — Councilman Ray Aranda
Second: Councilman Eric Aranda
Vote: 5–0 — Motion passes
14. Discuss/Consider & act on Service Provider agreement between the City of Dilley, Dilley VFD and the Frio County ESD No. 1 for fire protection — 01:25:30
City Administrator Henry Arredondo presented the annual service provider agreement with Frio County Emergency Services District No. 1 for fire protection services. The district will provide $155,000 in annual funding, an increase from last year’s $150,000, subject to itemized accounting and approval by the district board of commissioners.
Council discussed the ESD board composition, identifying President Chico Hines, Secretary Treasurer Roy Starnes, and Linda Parsons as board members. Councilman Rudy Alvarez suggested finding out who represents the city’s area on the board and potentially having someone attend ESD meetings. The council noted that ESD board members serve two-year terms and are appointed by county commissioners.
Motion: Approve the service provider agreement between the City of Dilley, Dilley VFD and Frio County Emergency Services District No. 1 for fire protection — Councilman Ray Aranda
Second: Councilman Rudy Alvarez
Vote: 5–0 — Motion passes
15. Discuss/Consider & act on agreement between the City of Dilley and Holguin Technology — 01:29:13
Tony Holguin reduced his annual IT contract proposal from $32,000-$34,000 to $28,000, representing a 30% increase over the city’s current $20,000 average annual spending. The contract provides guaranteed availability and includes travel costs, whereas the current per-call arrangement offers no service guarantee and Holguin plans to stop providing services after December 31st without a contract. Council approved the contract despite the cost increase, acknowledging they have limited alternatives for IT services.
16. Discuss/Consider & act on notice of Dilley ISD for SRO termination with the City of Dilley — 01:34:57
City Administrator Henry Arredondo read a September 2nd letter, gracious in tone, from Dilley ISD Superintendent Kelli DuBose formally terminating the School Resource Officer agreement with the city, effective immediately.
Motion: Recognize the notice of termination on the agreement with Dilley ISD concerning the SRO — Councilman Rudy Alvarez
Second: Councilman Alicia Machado
Vote: 5–0 — Motion passes
📌17. Discuss/Consider & act on update Bids for Request for Qualification for legal services — 01:37:20
The city received only one response to its Request for Qualifications for legal services from Davidson Troilo Ream & Garza, the city’s current law firm. Attorney Austin Beck explained that the former attorney had resigned after being elected county attorney, and he would now serve as the primary point of contact.
Councilman Rudy Alvarez expressed dissatisfaction with the firm, citing a lack of confidence in the previous attorney’s attention to city matters and taking offense at what he perceived as Beck telling him to “be silent” during a previous meeting. Beck apologized, saying the comment was misconstrued, and Councilman Everardo Castillo Jr. agreed.
Alvarez initially moved to take no action and issue a fresh RFP with more outreach efforts. Beck explained that the city could continue with the current firm until termination or selection of a new firm, and noted that professional services don’t require the RFP process. The city could directly engage any law firm.
The initial motion failed on a 2-2 tie vote, with Mayor Martinez-Inocencio casting the deciding vote against. Councilman Castillo then moved to accept the proposal from Davidson Troilo Ream & Garza, which passed 3-2 with the mayor breaking the tie in favor.
Motion: Take no action and issue fresh RFP — Councilman Rudy Alvarez
Second: Councilman Ray Aranda
Vote: 2-3, Mayor Martinez-Inocencio breaking tie against — Motion fails
Motion: Accept the RFQ from Davidson Troilo Ream & Garza — Councilman Everardo Castillo Jr.
Second: Councilman Eric Aranda
Vote: 3-2, Mayor Martinez-Inocencio breaking tie in favor — Motion passes
18. Discuss/Consider & act on update on bids for the commerce building — 01:46:27
After some confusion about whether any actual bids had been received, the council decided to reject all current submissions and restart the process with proper advertising in both the website and newspaper.
Motion: Reject all bids and extend the bidding process with advertising on the website and in the newspaper — Councilman Eric Aranda
Second: Councilman Everardo Castillo Jr.
Vote: 5–0 — Motion passes
19. Discuss/Consider & act on approval of 501 (c) (3) application for the City of Dilley — 01:52:30
Mayor Martinez-Inocencio requested guidance on creating a 501(c)(3) nonprofit to help the Animal Control Officer department accept donations from organizations that only donate to nonprofits. The ACO has received significant donations including building renovations and has connections with animal rescue groups that require nonprofit status for contributions.
Attorney Austin Beck advised that cities typically don’t create their own 501(c)(3) organizations, as this would make council members the board of directors while still being government entities. He explained that nonprofits should be “arm’s length” from government and suggested community members could establish an independent foundation that could then work with the city.
Beck noted potential conflict of interest issues if council members served on a nonprofit board that does business with the city. He suggested exploring existing animal-related nonprofits that might serve as intermediaries or having community supporters establish a new foundation.
City Administrator Arredondo mentioned that grant writing workshops recommend foundations because some entities and grants are only available to nonprofits. The mayor clarified there was miscommunication about prior legal review of the proposal.
The item concluded with Beck agreeing to research options and provide guidance on establishing an independent foundation that could support the city’s animal control efforts while maintaining appropriate separation from city government.
20. Discuss/consider & act on having a Special Meeting on September 23, 2025 — 02:00:33
21. Workshop- FY 2025-2026 Budget – postponed to next day due to length of meeting.
22. A-F. The appointment, employment, evaluation, reassignment, duties, discipline, dismissal or retirement of a public officer or employee City Administrator, City Secretary, Public Works Director, Library Director, Police Chief, Municipal Judge — 02:02:40
Closed open session at 8:33 pm.
23. A-F. The appointment, employment, evaluation, reassignment, duties, discipline, dismissal or retirement of a public officer or employee City Administrator, City Secretary, Public Works Director, Library Director, Police Chief, Municipal Judge —
Resumed open session at 12:08 am.
24. Adjournment
Recess and item 21 continued on the next day, September 17.
*Since the item is a workshop, there will not be a recap post.
– written by Jose Asuncion with Claude riding shotgun and ChatGPT in the back