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OKAY.

[00:00:01]

IT'S 6 0 1.

[Water and Wastewater Commission on August 4, 2021.]

AND WAS THAT AUGUST WATER IN A WHISK WATER COMMISSION MEETING WHERE YOU'RE MEETING AND WE'VE GOT A QUORUM.

SO NOW WE WILL MOVE ON TO, UH, AND THERE'S NO CITY THAN COMMUNICATION SIGN UP.

SO WE'LL MOVE TO ITEM A APPROVAL OF MINUTES FROM JULY 14TH, 2021.

WITH WATER COMMISSION MEETING COMMISSIONERS GOT A CHANCE TO LOOK AT THE MEETING MINUTES AND WE WILL ENTERTAIN FOR MOTION.

COMMISSIONER MESHES TO APPROVE MOTION MADE BY COMMISSIONER .

IS THERE A SECOND, SECOND BY COMMISSIONER PEN AND ALL IN FAVOR, SHOWING APPROVE AN MSB FOR ALL THE COMMISSIONERS PRESENT.

THANK YOU.

THEN WE'LL MOVE TO ITEM B AND WE WILL GO AROUND THE TABLE.

ASK A COMMISSIONER, IF ANY QUESTIONS OR RECUSALS AT THE, IF WE GOT PRE STATED THE REASON FOR YOUR RECUSAL AND WE'LL START WITH, UH, COMMISSIONER MORIARTY.

ALL RIGHT.

QUESTIONS ON ITEM FIVE, QUESTION NUMBER FIVE.

COMMISSIONER PEN.

A QUESTION ON ITEM SIX.

NO RECUSALS.

OKAY.

COMMISSIONER MS. CHERYL QUESTION ON ITEM EIGHT.

NO RECUSALS.

A COMMISSIONER MUST GROW YOUR QUESTIONS.

MICHELLE FISHER, NO QUESTIONS.

NO RECUSALS.

COMMISSIONER YETTA.

A QUESTION ON ITEM B FOUR.

NO.

AND I GOT A QUESTION.

UM, ITEM NUMBER SIX.

OKAY.

SO THE CONSENT ITEMS ARE B 1 2 3 7 1 2 3 AND SEVEN.

AM I CORRECT? OH, IN NINE.

I'M SORRY.

IT'S NINE.

YES.

DID WE DO? SURE.

NOW WE'RE GOING TO SKIP IT UNTIL WE GET REPRESENTATION.

SO THE CONSENT REPEAT THE CONSENT ITEMS. SO 1, 2, 3, AND SEVEN.

I MOVE APPROVAL MOTION MADE BY COMMISSIONER YETI.

AND SECOND BY COMMISSIONER AND THE SHOW ALL IN FAVOR, PLEASE RAISE YOUR HAND, SHOWING THE POOP AND MSB.

THANK YOU.

OKAY, NOW LET'S MOVE TO ITEM B OR RECOMMEND APPROVAL TO NEGOTIATE.

AND IT'S CUTE AND ADVANCED MONEY AGREEMENT WITH TEXAS DEPARTMENT OF TRANSPORTATION, FOR THE RELOCATION AND ADJUSTMENTS OF EXISTING WATER AND WASTEWATER LINES.

AND JONAS IS IN CONFLICT WITH GIF HOOPS, 360 AT WASTE BREAK, OR WITH PROJECT IN THE AMOUNT OF 7 MILLION, 10 SALTED.

AND WITH THE FOUR BOTTLES PRESS A 10% CONTINGENCY FOR 7 0 1 OF THE $5 AND 40 CENTS FOR A TOTAL AMOUNT, NOT TO EXCEED 7 MILLION, $711,059 40 CENTS.

AND THIS IN THIS WAY, NUMBER 10.

AND I BELIEVE THE QUESTION IS COMMISSIONER YET.

UH, YES.

UM, YOU KNOW, 7 MILLION AND CHANGE.

IT'S, IT'S A, IT'S A HEAVY LIFT.

AND I WAS WONDERING IT WASN'T CLEAR TO ME WHY WE WERE FROM THE BURDEN FOR THIS.

AND WE WEREN'T PRICED SHARING WITH TXDOT.

IT WASN'T CLEAR IF IT'S IN RIGHT AWAY OR IF THEY'RE TAKEN ON NEW RIGHT AWAY AND NOW WE'RE IN THERE RIGHT AWAY.

OR SO THAT WAS MY QUESTION IS JUST HOW, HOW DID IT COME TO BE? YEAH.

SO KEVIN KOHLER, MANAGING ENGINEER FOR US AND WATER, UM, THIS IS ALL IN THE RIGHT OF WAY AND PART OF THE COSTS.

SO THERE ARE A COUPLE OF REASONS FOR THE HIGH COST.

A COUPLE ONE REASON IS THAT WE HAVE SOME LARGE DIAMETER WATER MAINS OUT THERE.

SO THERE ARE HIGHER COSTS THAN NORMAL.

THE OTHER IS THE TEXTILE IS ACTUALLY SUBMERGING THE SECTION.

SO THEY'RE LOWERING THE ROADWAY THERE.

SO THERE'S ADDITIONAL COSTS WITH THAT.

AND THE THIRD REASON FOR THE COST IS THAT THIS ISN'T A ROCK.

SO IT NEEDS TO BE EXCAVATED.

ALL OF THE LINES HERE ARE WITHIN THE TEXTILES RIGHT AWAY, AND THE SORT OF RULE REQUIRED TO MOVE THOSE.

THERE'S NO COST REIMBURSEMENT

[00:05:01]

FOR THAT.

SO LOOKING TO MOVE THEM OUTSIDE OF TEXTILES RIGHT AWAY.

SO WE, THE PROCESS OF APPEALING EASEMENTS IS A PRETTY LONG PROCESS.

AND SO WE RIGHT NOW JUST RELOCATE, ARE THEY PLANNING TO DO THIS TYPE OF WORK? AND I KNOW YOU MIGHT NOT BE ABLE TO ANSWER THIS AT OTHER MAJOR INTERSECTIONS ON THREE SIX.

SO YES THEY ARE.

THEY HAVE THE NUMBER OF INTERSECTIONS ON 360.

WE BELIEVE THIS ONE'S MORE EXPENSIVE BECAUSE THEY'RE LOWERING THEIR, I CAN GET ADDITIONAL DETAILS FOR YOU.

AND IT WOULD JUST BE NICE IF WE COULD STAY AHEAD OF THEM A LITTLE BIT AND MAYBE SAVE SOME MONEY BY MOVING OUTSIDE OF THE RIGHT AWAY WHERE WE CAN.

I KNOW IT'S DIFFICULT.

IT'S A CHALLENGE.

I UNDERSTAND THAT.

OKAY.

THAT WAS IT.

I HAD A QUESTION AND YOU HAD A QUESTION.

I MAKE A MOTION TO APPROVE MOTION MADE BY COMMISSIONER .

IS THERE A SECOND? SO I GET MY COMMISSION.

OKAY.

ALL IN FAVOR, PLEASE RAISE YOUR HAND, SHOW IT, APPROVE AN MSD.

THANK YOU.

LET'S MOVE TO ITEM B.

WHY RECOMMEND APPROVAL TO AWARD? AND IT'S CUTE.

A CONTRACTION CONTRACT WITH PG SHEET GENERAL CONTRACTORS, LLC, FOR FACILITIES EMERGENCY AND THE DEEP STATE EMERGENCY AT THIS STATION.

INDEFINITE DELIVERY, INDEFINITE QUANTITY CONTRACT IN THE AMOUNT OF $4 MILLION FOR EACH INITIAL ONE YEAR TERM WAS TWO, ONE YEAR EXTENSION OPTIONS OF $4 MILLION FOR A TOTAL CONTRACT AMOUNT, NOT TO EXCEED 12 MILLION ARTISTS.

COMMISSIONER MONYETTE PLEASE.

THANK YOU, CHAIR.

UM, I UNDERSTAND THERE WAS ONLY ONE PETER SCOTT, CORRECT.

DO YOU HAVE AN EXPLANATION WHY THAT IS? WE, UH, WE ACTUALLY HAD SEVERAL TURN OUT AS A FREE BID.

UM, WE WORKED WITH ALL THIS CRIME PROCESS AND AT THE END OF THE , WE WENT BACK AND TALKED TO THE, UH, YOU KNOW, THE OTHER TIME KIND OF ASKING THEM WHY THEY SUBMIT A BID AND THE ANSWERS WE GOT BACK FOR BASICALLY THAT THEY WERE TOO BUSY WITH OTHER PROJECTS.

AND THAT, UH, ONE BETTER SAID THAT NO, THE INCREASE IN MATERIAL PRICING THAT HAS BEEN HAPPENING LATELY HAS MADE IT VERY HARD FOR THEM TO BID ON THE PROJECT AND LOCKDOWN PRICES.

UM, BUT AGAIN, UH, THAT'S NOT SOMETHING THAT, YOU KNOW, WE CAN REALLY HELP THEM OUT WITH MATERIAL PRICES INCREASING RAPIDLY RIGHT NOW.

UM, SO THOSE WERE THE, THOSE WERE THE REASONS THAT PEOPLE GAVE US ON THE PROJECT, UM, IN THIS, UH, SUCCESSFUL LOW SINGULAR BITTER PIECE, THE PERSON THAT'S HAD THIS CONTRACT IN THE PAST, THEY'VE BEEN AWARDED A CONTRACT TWO TIMES.

SO BASICALLY THE THIRD TIME CONTRACTS, YOU KNOW, WE FEEL LIKE THEY HAVE A LOT OF EXPERIENCE, OBVIOUSLY, VERY GOOD JOB EMERGENCY PROJECTS.

THAT'S WHAT THIS CONTRAST I'D LIKE TO ASK AUSTIN WATER.

IF THEY WOULD BE WILLING TO PULL THIS AND REDO IT, I'VE GOT SOME SERIOUS RESERVATIONS ABOUT AWARDING THIS CONTRACT.

I'M GOING TO VOTE AGAINST IT, BUT I'D BE HAPPY TO JUST LEAVE IT THERE IF BE WILLING TO SUSPEND THIS AND DO IT OVER.

AND, UH, WHAT, WHAT I WOULD RECOMMEND YOU DO, UM, IS THAT YOU HAVE MORE SERIOUS DISCUSSIONS WITH THOSE PROSPECTIVE CONTRACTORS AND FIND OUT EXACTLY WHY THEY DIDN'T BID AND TRY TO GENERATE MORE BIDDING ACTION.

I'M NEVER GOING TO VOTE FOR ANYTHING THAT HAS ONE BETTER.

I CAN TELL YOU THAT RIGHT NOW.

SO IF YOU GUYS WILL AGREE, PULL IT AND REDO IT.

UM, I THINK THAT'D BE THE BEST COURSE OF ACTION VERSUS US VOTE OR NOT VOTE COMMISSIONER.

I THINK WITH ALL DUE RESPECT, WE WOULD STILL WANT TO MOVE FORWARD WITH THIS.

WE HAD AN HONEST, OPEN BIDDING PROCESS INITIATED.

THERE WERE OTHER BIDDERS THAT SHOWED INTEREST.

BUT I THINK FOR US JUST TO READ IT AGAIN WITHOUT CHANGING SPECIFICATIONS, WELL, THAT, THAT MAY BE YOU.

I THINK YOU WANT TO CHANGE THOSE SPECIFICATIONS.

I THINK

[00:10:01]

THERE'S PROBLEMS WITH THEM.

I THINK THE OTHER ISSUE HERE, AND THIS IS FOR EMERGENCY WORK US AND TO THE, IT WOULD TAKE MANY MONTHS.

AND THIS CONTRACT IS INSPIRING, WERE COMPLETELY OUT OF AUTHORIZATION ON OUR CURRENCY CONTRACTS.

WE WERE AWARE OF, YOU KNOW, WE HAD A SINGLE VENDOR LAST TIME.

AND SO ACTUALLY WE'VE ALREADY DONE WHAT YOU SUGGESTED.

TALK TO ALL THE CONTRACTORS AND WE REVIEWED THE SPECIFICATIONS, ASK THEM WHAT THEY HAD PROBLEMS WITH THE LAST TIME WE TRIED TO FIX THOSE PROBLEMS. AND, UH, ONE OF THE THINGS WE DID IS WE SPLIT UP THE ICU IN AN ATTEMPT TO GET MORE BIDDERS.

WE SPLIT IT UP SO THAT WE HAD AN EMERGENCY IQ.

AND THEN LATER IN THE FUTURE, WE'RE GOING TO BE COMING OUT WITH THE LARGE IQ.

SO YOU USED TO BE A COMBINED IQ AND SOME OF THE CONTRACTORS HAD ISSUES WITH EMERGENCY REQUIREMENTS.

SO WE BASICALLY BROKE THE CONTRACTS APART.

WE TOOK THE EMERGENCY LANGUAGE, SIMPLIFIED IT.

WE WERE VERY, VERY WELCOMING TO CONTRACTORS AT THIS TIME.

WE SAID, WE REALLY WANT YOU TO BE ON THIS OR WORK WITH YOU ON A CONTRACT OR TO HELP YOU IN CONTRACT AND REALLY LOVED IT MORE THAN A SINGLE BITTER.

I FEEL LIKE WE'VE DONE IT, ALL THE THINGS THAT YOU'RE SUGGESTING MAYBE MORE.

AND WE ENDED UP WITH A SINGLE BID AND WENT BACK AND TALKED TO ALL THE BIDDERS.

AGAIN, WE'RE VERY WELCOMING FOR EXTRA.

AND THEIR RESPONSE WAS BASICALLY THAT THEY WERE BUSY WITH OTHER THINGS.

IT'S NOT, THAT'S NOT WHAT'S GOING ON HERE.

DID THE CITY ANSWERED QUESTIONS FROM PROSPECTIVE CONTRACTORS WHEN THEY, DURING THE BID PERIOD AND PEOPLE ASKED YOU QUESTIONS, DID YOU GIVE THEM ANSWERS? YEAH, OF COURSE CLARIFICATION.

YOU SURE ABOUT THAT? OKAY.

UM, TO MY FELLOW COMMISSIONERS THAT I'D REALLY LIKE TO SEE, I'D REALLY LIKE TO SEE THIS REDONE.

THIS IS NOT A GOOD SITUATION FOR ANYBODY.

THIS IS A BAD, BAD SITUATION.

SO, UH, I THINK THEY NEED TO FIGURE OUT A WAY TO ATTEND TO YOUR NEEDS FOR A FEW MONTHS AND REBID THE JOB.

THAT'S WHAT I'VE DONE SEE HAPPENED.

UH, CAUSE I JUST THINK THIS IS NOT, NOT A WELL STRUCTURED MR. MORIARTY.

YOU'RE YOU'RE ASKING THE COMMISSION TO CONSIDER SOMETHING THAT WE DON'T HAVE ANY FEEDBACK AROUND INFORMATION ON.

CAN YOU EXPOUND ON WHAT YOU'RE RIVINGTON? YEAH.

I WAS CALLED BY A COUPLE OF CONTRACTORS WHO, I DON'T KNOW WHO THEY ARE.

I MEAN, OUR, OUR CELL PHONE NUMBERS ARE PUBLIC DOMAIN AND THEY SAID THAT THEIR, THIS, THIS CONTRACT WAS FRAUGHT WITH PROBLEMS AND, UH, AND THE CITY DIDN'T ANSWER THEIR QUESTIONS.

THE QUESTIONS WERE SUBMITTED IN WRITING AND THEY GOT NO ANSWERS BACK AND IT SEEMED LIKE THERE WAS A, UH, AND INTEREST IN KEEPING THE INCUMBENT GUY.

AND, UH, SO NOW INTERVIEWS, SO THAT'S A VIOLATION OF THE ANTILOCK CONTEXT.

YOU, YOU AND YOU ARE REQUIRED TO REPORT TO THE PURCHASING LAW AND WE WILL HAVE TO FOLLOW UP WITH THAT.

THAT IS, UH, THERE IS A POINT OF CONTACT FOR ALL CITIZENS PATIENTS AND THE CONTRACTORS ARE AWARE OF THAT.

THAT IS A VERY IMPORTANT PROCESS THAT CAN LEAD TO DISQUALIFICATION OUR CONTRACT.

WELL THAT'S OKAY.

AND THIS HAS NOT BEEN PROTESTED TO THE BEST OF CONTRACT.

THIS CONTRACT PROTESTED BY ANYONE ON STAFF, UH, REVIEWED AND ALSO CONTACTED THE PEOPLE WHO ATTENDED THE PRE-BID MEETINGS.

AND THERE WERE ADDITIONAL PLACEMENTS OUTSIDE OF THE AGENDA IN THE CLARIFICATIONS THAT WERE POSTED.

MY TEAM DID NOT RECEIVE ANYTHING ADDITIONALLY, UH, TO RICHARD STATING.

SO, UH, TO MY FOUNDATION, I HAVE NO DOMINATION OR REGULATION OF A CONTRACTOR IN THAT GETTING THEIR QUESTIONS QUESTION.

WAS THERE ANYTHING UNUSUAL OR OUT OF THE ORDINARY WITH THE BID PROCESS FOR THIS COUPLE? NO, SIR.

THIS WAS THE STANDARD MEETING AND STANDARD PROCESS, NOTHING, UH, NOTHING OUT OF THE ORDINARY.

UH, THE ONLY THING WAS WE HAVE A SOLD THERE AND KEVIN'S TEAM CONTACTED ALL THE PEOPLE WHO ATTENDED THE PRE-BID MEETING TO ASK WHY, AND THEY SAID THEY WILL BE A C.

[00:15:01]

AND FOR THE TYPICAL BID PROCESS FOR THIS CONTRACT, IF IT WERE TO BE REBID, WHAT, WHAT SORT OF SCHEDULE DURATION WOULD BE TYPICAL? WELL, WE'LL COMPRESS THE TIMELINE SINCE IT'S ALREADY BEEN PAID, BUT, UH, WE WON'T BE ABLE TO RUB TOO MUCH OFF OF IT.

IT'S STILL GOING TO BE A PRETTY LENGTHY PROCESS.

UH, I DON'T THINK WE WOULD, UH, I DON'T, I DON'T KNOW WHAT KEN'S TIMELINE IS.

SO I WOULD HAVE TO SIT DOWN AND DISCUSS THAT AND FIGURE OUT WHAT WAY, WHAT WAS THE ORIGINAL DURATION ON THE BID PROCESS? APPROXIMATELY? I THINK THAT THAT PROCESS, I MEAN, WE'VE READ AN IQ WHILE BACK QUITE A LONG TIME THAT MAKES SIX MONTHS MINIMUM.

EVEN IF WE'RE RUSHING, IT WOULD BE EXPENSIVE AWAY FOR SURE.

AND ONE THAT WE DON'T HAVE A CONTRACT RIGHT NOW, OUR CURRENT RESIDENCY CONTRACT IS OUT OF AUTHORIZATION.

SO WE'RE DEFINITELY LOOKING FORWARD TO THIS ONE, GOT BROADER THAT WE KNOW ARE EMERGENCIES, RIGHT? I WOULDN'T SAY ANOTHER EMERGENCY URGENT, YOU KNOW, THERE'S DEFINITELY A NEED THROUGH THE CONTRACT.

I'LL START AT THE CAPITOL CONTRACTING OFFICER ROLE IS TO EXECUTE THE CONTRACT WITHIN 130 DAYS OR HOWEVER, BECAUSE THE NATURE OF THIS PARTICULAR CONTRACT AND THE, UH, SELECTED CONTRACTOR HAS BEEN DOING GOOD WORK IS IN FAIR STANDING WITH THE CITY.

YEAH, THEY DID, UM, YOU KNOW, GOOD WORK.

UM, I THINK WE DEFINITELY FEEL CONFIDENT AND THEN DOING THIS EMERGENCY CONTRACT, I THINK ON AN X-RAY OR IQ, YOU ARE TRYING AS HARD AS WE CAN TO GET MORE FITTERS, UM, YOU KNOW, KIND OF GETTING MORE TO COME IN THIS CONTRACT.

BUT I THINK ON THIS ONE LIVE STATIONS IN EMERGENCIES, THEY'RE VERY WELL-EXPERIENCED WITH THOSE TYPES OF PROJECTS, I WOULD SAY THAT'S KIND OF THEIR, THEIR WHEELHOUSE AND, UM, WE'RE CERTAINLY CONFIDENT THEY CAN DO THE CONTRACT JOB.

QUICK QUESTION.

UM, YOU KNOW, YOU REVIEWED THE BID AND I'M ASSUMING YOU HAVE LINE ITEMS FOR DIFFERENT TYPES OF WORK THAT COME UP FRIDAY IQ WHERE THEIR PRICE IS REASONABLE IN LINE WITH PAST HISTORICAL BITS FOR THAT TYPE OF WORK.

YES.

THE CONSULTANT RECOMMENDED THEM, DID THAT ANALYSIS, THE PREVIOUS AND THE CURRENT LINE ITEMS, THAT ACCOUNT, OBVIOUSLY THE INFLATION OF MATERIALS AND CAME BACK WITH A RECOMMENDATION THAT THE BID PRICING WOULD, YOU KNOW, WE HAVE, WE HAVE KENNEDY.

JAMES IS THE CONSULTANT FOR US RECOMMENDING IT, IN MY OPINION, FIRST OF ALL, IT'S LIFT STATIONS, WHICH IS WASTEWATER AND NOT A LOT OF CONTRACTORS, ESPECIALLY IF THEY'RE REALLY BUSY, WANT TO DEAL WITH THAT.

SO, AND WITH THE ECONOMY, THE WAY IT IS, AND THEN BEING AS BUSY AS THEY ARE, IT DOESN'T SURPRISE ME NECESSARILY THAT YOU ONLY GOT ONE BID.

AND AS LONG AS THE BID LOOKS COMPETITIVE AND IT'S NOT PRICE GOUGING, I WOULD LIKE TO RECOMMEND COMMISSIONER SCOTT.

AND YOU HAD A QUESTION THAT COMMISSIONER YEAH, JUST KIND OF FOLLOWING WITH WHAT COMMISSIONER SAID.

UM, I THINK WE'VE HAD, IF I RECALL THIS IS THE SAME CONTRACTOR TO TELL THIS FOR THE THIRD TIME, AND I BELIEVE IN THE PAST, THEY'VE EVEN BROKEN OUT.

WE'VE SEEN DETAILS OF ALL OF THE BID ITEMS AND WHAT ABLE, ABLE TO COMPARE WHEN THEY HAD MULTIPLE BITTERS.

UM, IS THERE ANY IDEA THAT, SO YOU'RE ABLE TO, YOU DON'T HAVE ANY COMMITTERS TO COMPARE WITH THIS TIME, BUT YOU HAVE LAST YEAR OR THE LAST TIME, IS THERE ANY KIND OF FEEL FOR HOW MUCH THE CHANGE WAS AS FAR AS THE LAST TIME VERSUS THIS TIME WITH THIS PARTICULAR? OH, I CAN'T GIVE AN EXACT PERCENT, BUT AGAIN, WASN'T, WE, WE ASKED THAT QUESTION.

IT WASN'T A SIGNIFICANT INCREASE IN REALLY, REALLY RIGHT NOW.

I MEAN, THE CONSULTANTS COMPARING THOSE LINE ITEMS TO THEIR ARCHIVE COST PRODUCTS.

SO REALLY WHAT THEY'RE DOING IS THEY'RE LOOKING AT THOSE LIVES AND ALSO JUST COMPARING TO THEIR OWN COST.

MAYBE SHE'S LIKE YOU SAID, THEY DIDN'T HAVE EXTRA BITTERS COMPARED TO THIS SOLVENT ARCHIVE COST ESTIMATE AND DO THAT COMPARISON.

RIGHT.

BUT JUST LIKE I GIVE IT TO ANY OTHER CONSULTANT, THAT'S WHAT THEY ENDED UP DOING, COMPARING IT.

NO, WE BASICALLY WENT BACK AND FORTH

[00:20:01]

AND ASKED IF THERE WERE ANY ITEMS THAT STOOD OUT TO THEM.

THERE WEREN'T ANY ITEMS THAT STOOD OUT THERE AND RECOMMENDED.

SO THAT'S THE ABILITY TO DO THAT.

I GUESS MY THOUGHT ON THIS IS THAT IF WE WAIT SIX MONTHS, I MEAN, I KNOW THERE'S SOMETHING ELSE TO DEAL WITH HERE, BUT AS FAR AS THE, THE, AS IT'S SUBMITTED, I FEEL LIKE WE'RE NOT GOING TO GET MORE BITTERS IN SIX MONTHS.

UM, I THINK THOSE CONCERNS THAT COMMISSIONER MORIARTY RAISED, I MEAN, THOSE ARE, SOUNDS LIKE THOSE ARE GOING TO GET LOOKED INTO, UM, SEPARATELY, BUT I, I FEEL LIKE, UH, YOU KNOW, AS FAR AS WHAT'S WHAT WE'RE PRESENTED WITH, I THINK, UM, IN FAVOR OF IT AS WELL AT THIS POINT, WHEN YOU CONTACTED ALL THE PROSPECTIVE BIDDERS ANY ONE BIT AND YOU ASKED THEM WHY THEY DIDN'T BID, DID YOU DOCUMENT ALL THOSE KINDS OF ? SO THOSE, THOSE COULD BE RECOVERED FROM YOU BECAUSE I CALLED THIS CERTAIN PERSON THIS CERTAIN TIME AND ASKED THESE QUESTIONS AND KEPT A LOG OF EVERY CONTRACTOR SAID THAT YOU'RE SIMPLY TOO BUSY IN THIS JOB.

YES, SIR.

NO OTHER REASON.

SO YOU'RE NOT SURE.

NO, I'M SURE.

PART OF OUR OPERATING.

AND DID ANYBODY SAY THAT THE BID DOCUMENTS WERE POORLY STRUCTURED AND YOU WOULD KNOW IF YOU REVIEWED THESE LOGS OF ALL THESE QUESTIONS, SO YOU DON'T KNOW.

I THINK THERE WERE, I THINK THIS A BAD ONE, BUT WHY DON'T WE VOTE IT? ANY OTHER QUESTIONS? UH, I GOT COMMENTS, NUMBER ONE, WE DON'T WANT TO HAVE THE PERSONAL WATER.

YOU GET IT WHILE I'M OFF CONTRACT IS PILED AND WE DON'T HAVE THIS URGENT SERVICE THAT WE NEED ON THE SAME TOKEN.

THIS IS A ONE YEAR BASED COUNTRY WITH TWO, ONE YEAR EXTENSIONS.

AND MY SUGGESTION IS WE VOTE FOR ONE YEAR TO SURVIVE ONE YEAR THAT WE'RE BIASED TIME TO BE, TO DO THE NEW PROCUREMENT FOR NEXT YEAR AND NOT .

SO THE ISSUE.

SO MY, MY MOST, MY, MY KIND OF MOTION IS WE APPROVED THE BASE.

THE BASE OF CONTRACT IS OUT OPTION TO EXTEND.

AND THAT WAY WE WILL HAVE ONE YEAR IN PROCUREMENT.

IF WE START TOMORROW, IT TAKES ABOUT FOUR MONTHS, SIX MONTHS UNTIL THE COUNCIL APPROVED A NEW CONTRACT.

AND THAT SHOULD BE GIVE US, WE, WE WON'T BE OUT OF SERVICE FOR THE CUTCO TO COME IN HERE.

AND THEN THAT WILL GIVE US A NEW PACKAGE, WHATEVER THAT CAN DETAIL IT.

CHAIRMAN LEE.

THAT'S WHY YOU ARE THE CHAIRMAN.

THANK YOU.

COME UP WITH GREAT IDEAS, BUT I'D LIKE TO ADD ONTO IT.

I THINK WE NEED AN INVESTIGATION INTO THIS PROGRAM.

AND SO I WOULD, I WOULD AGREE TO VOTE FOR ONE YEAR, BUT I WOULD LIKE TO SEE THE AUDIT DEPARTMENT INVESTIGATE.

AND I'D LIKE TO SEE ALL THESE LOGS OF ALL THESE QUESTIONS WE'VE ASKED.

I'D LIKE TO SEE IF LETTERS WERE WRITTEN TO THE CITY ASKING QUESTIONS THAT WEREN'T ANSWERED.

AND OBVIOUSLY THEY GOT TO INVESTIGATE ME, RIGHT? BECAUSE I HAD TOOK THESE ANONYMOUS PHONE CALLS, SO I'M IN TROUBLE, BUT I DON'T CARE.

WHAT CAN THEY DO TO ME? RIGHT.

UM, SO CAN, CAN I AMEND YOUR BE APPROVED FOR ONE YEAR, BUT THE CITY AGREES TO HAVE THE AUDITOR INVESTIGATE THIS PROCUREMENT AND I'M WILLING TO BE A WITNESS IN THAT, UH, UH, INVESTIGATION.

WELL, A FEW COMMENTS ON VIOLATION OF ANTI YOU CAN RESOLVE IN THE REMOVAL OF COMMISSIONER AND IT HAS HAPPENED BEFORE THIS COMMISSION.

UM, YOU CAN, UH, MAKE RECOMMENDATIONS TO THE COUNCIL IF YOU WANT AN AUDIT DONE, IF WANT

[00:25:01]

IS LOADED IN OTHER WAYS, BUT YOU CAN'T CORRECT STAFF.

UH, SO I WOULD JUST ASK, IT SHOULD BE FRAMED AS THOUGH TWO RECOMMENDATIONS TO THE COUNCIL WERE SUGGESTED TO THE COUNCIL THAT A DIRECTOR AUDITOR TO DO AN AUDIT, BUT AUSTIN WATER IS NOT GOING TO DO THIS CHAIR.

I HAVE QUESTIONS FOR STAFF, THE, UH, THE INITIAL PERIOD FOR THE CONTRACT.

AND THEN THE TWO OPTIONAL PERIODS IS THAT STANDARD FOR THIS IDEA IQ CONTRACT.

YEAH, THAT'S, THAT'S BEEN KIND OF STANDARD LANGUAGE FOR ALL OF OUR CONTRACTS.

AND, UM, IT JUST GIVES US TIME TO, IT TAKES A QUITE A LONG TIME TO KIND OF REVAMP THE CONTRACT.

EACH TIME WE SEND IT OUT, YOU KNOW, REFLECTING LINE ITEMS WE'RE TAKING, WHETHER THE WHOLE CONTRACT, IT TAKES QUITE A LENGTHY TIME TO READ, PREPARE THE CONTRACT.

YOU SHOULD NOT BE ABLE TO JUST GRAB IT AND SEND IT OUT AGAIN.

SO IT JUST GIVES US THAT TIME FOR THAT LEEWAY TO GET ALL OF THAT DONE.

SO WE HAVE SOME OVERLAP, RIGHT? I WANT SOME MORE OVERLAP ON THE CONTRACTS.

WE ONE TIME TO PREPARE THE NEXT ONES, YOU KNOW, TO TRY TO MAKE IT OBVIOUSLY SO THAT WE MIGHT HAVE MORE BIDDERS TO BID ON WHICH WE FELT LIKE WE PUT A LOT OF EFFORT IN THIS TIME.

THAT WAS SOMETHING THAT WE WERE THINKING ABOUT WORKING ON THE ENTIRE TIME WE PUT THIS CONTRACT TOGETHER.

AND, UM, I THINK THAT, UH, YEAH, WE DO.

WE GIVE YOU SOME TIME.

SO OBVIOUSLY YOU PUT ANOTHER CONTRACT, ESPECIALLY FOR PLANNING ON CHANGING A LOT, REVAMPING IT.

IT'S GOING TO TAKE A LOT OF TIME JUST TO DO THAT.

AND IT'S GOING TO TAKE TIME TO REBUILD IT.

I CAN TALK ABOUT, SO, YOU KNOW, IT'D BE DIFFICULT WITH JUST ONE YEAR AUTHORIZATION ON THIS CONTRACT.

WE KIND OF DO ALL THE THINGS THAT WE'RE TALKING ABOUT DOING RIGHT NOW TO TRY TO OBVIOUSLY GET BITTERS.

NEXT TIME YOU SHOULD BE A LITTLE BIT OF A CRUSHING CRUSHING DOG.

RENOS ARE NOT REQUIRED AND NOT CONTRACTION REQUIRED.

IF WE BELIEVE THIS CONTRACTOR IS UNDER PERFORMING STRESS TO CONSIDER CERTAINLY THE COUNCIL DOESN'T APPROVE THIS AND THAT RIGHT NOW, I'LL JUST SPEAK ON BEHALF OF COUNCIL AS CURRENTLY CHAIR.

I, I UNDERSTAND THAT IT SAYS THE URGENCY OF THIS CONTRACT.

I, YOU KNOW, I WOULD NOT SUPPORT AN AMENDMENT TO NOT APPROVE THE PROPOSED CONTRACT GUYS IS WITH THESE OPTIONAL PERIODS, YOU KNOW, BASED ON HEARSAY.

SO, YOU KNOW, WE DON'T HAVE ANY EVIDENCE OF WHAT'S BEEN BROUGHT BEFORE US.

SO I, I WOULD NOT SUPPORT, UH, AMENDING, I, I AM IN FAVOR OF APPROVING THE CONTRACT TONIGHT AS IS.

I UNDERSTAND THAT.

I THINK THE ISSUE HERE IS NOT THE CONTRACTOR IS A QUALIFIED CONTRACTOR OR YOUR PERFORMANCE ON BED IS MORE OF A CONCERN IS PROCUREMENT PROCESS.

MAYBE NOT AS SATISFACTORY TO COMMISSIONER IN SOME PEOPLE THERE.

AND I GOT A QUESTION ABOUT THAT TO MYSELF.

YOU KNOW, THIS IS WHAT I'M TALKING ABOUT, $12 MILLION CONTRACT.

AND THEN IF THIS, THEY SAID, THIS IS, WE DON'T HAVE ANY BIT TAB LIKE PERMISSION OR PIN MENTION ABOUT WHAT'S THE UNIT PRICE FROM PRE BID FROM CURRENT CONTRACT TO, FROM CURRENT CONTRACT TO THE PROPOSED CONTRACT, IS THERE 5% INCREASE ON THE PIPE BECAUSE OF MATERIAL COST OR WHATEVER.

WE DON'T HAVE SUPPORTED ANY SCOLDING DOCUMENT ON IT.

AND THAT'S WHY I'M TRYING TO SEE THAT WE CAN SURVIVE THE OPERATION FOR ONE YEAR AND NOT GIVE US TIME TO HAVE TWO, A TWO TO THREE PACKAGE.

AND THEN IF THEY ARE DOING GOOD, THEIR PRICE IS GOOD.

IT WILL BE, THEY WILL BE, THEY WON'T BE THE REPEATER AGAIN, YOU KNOW, AND WE'LL BE HAPPY WITH THAT.

UM, BUT EVERY, EVERY COMMISSIONER GOT, YOU GOT TO YOUR, YOUR CHOICE, BUT, UH, PRODUCE, WAIT, LET ME, LET ME PUT THE, MY MOTION.

AND IF YOU DID DISAGREE WITH ME, YOU CAN BOTH READ NOW AND THEN WE CAN MOVE ON AND GET, AND THAT WOULD BE THE EASIEST STORY THEY SAW.

I WILL MAKE A MOTION TO APPROVE THE BASE PIT WITHOUT EXTENSION OF, WITHOUT ANY TENSION ON IT.

SO IT'S THERE A SECOND ON IT.

SECOND BY COMMISSIONER MORIARTY.

SO ALL IN FAVOR, PLEASE RAISE YOUR HAND FIRST.

THERE WAS A BIT OF A THING.

NO, BUT I MADE IT I'M MAKING PROGRESS, BUT THIS IS OFF THE TABLE.

YEAH.

HE'S JUST GOING FOR THE ONE YEAR REBID, I THINK JUST THE ONE YEAR.

AND WE DON'T, WE DON'T DO THE EXTENSION, BUT WHEN I'M TALKING ABOUT REPEAT OR WHATEVER, WE JUST GIVE THIS GUY IS A CONTRACTOR ONE YEAR CONTRACT

[00:30:01]

PERIOD, BEFORE THAT STAFF NEEDED TO COME UP WITH THE SOLUTIONS TO HOW THE CONTINUATION NEXT YEAR FROM NOW, WHAT ARE YOU FROM NOW? QUESTION? DOES THAT MEAN THAT, UH, THERE'S THE POSSIBILITY THAT WE WOULD HAVE APPROVED YOUR RECOMMENDATION AS YOU'VE MENTIONED AND BEFORE THE ONE YEAR COMES UP, IT MIGHT ALL BE RESOLVED AND WE MOVE ON AND THEY'RE ABLE TO RENEW.

NO, WE ARE NOT.

THAT'S WE'RE RECOMMENDING THAT RENEWAL IS OFF THE TABLE.

THAT'S MY SUGGESTION.

THAT'S MY EMOTION.

YES.

ANY MORE QUESTIONS BEFORE WE BOLT ON THE MONTH? YES, SIR.

I, I THINK THAT THE WAY THAT THE PRICES ARE RIGHT NOW THAT EVERY CONTRACT THAT'S GOOD NOW ON BE LOOKED AT IN A YEAR OR SO WHEN HE COMES BACK UP TO SEE IF IT SCORES BIDDING OUT AGAIN OR NOT, BECAUSE I THINK CHEMICALS ANY, ANY, EVERYTHING IS HIGH, RIGHT? SO, I MEAN, WE'RE FOOLISH TO GO FOUR YEARS ON SOMETHING JUST BECAUSE WE CAN'T, I THINK WE NEED TO, EVERY CONTRACT NEEDS TO BE LOOKED AT, BUT THAT WOULDN'T BE ONE PERIOD.

AND I'M HOPING THAT THEY DO THAT TO THIS ONE TOO.

NOT JUST FOR THE REASONS STATED, BUT JUST THE COST TO SAY, IF YOU CAN SAVE MONEY, YOU WANT TO TRY AND DO THAT.

SO I JUST, I, I, I KNOW THAT THEY DO THAT REGULARLY.

SO I JUST HOPE THAT THIS CONTRACT THAT HAPPENS.

THANK YOU FOR YOUR COMMENT.

OKAY.

ANY MORE QUESTIONS? IF NOT, WE'LL VOTE.

IF THE COMMISSIONER IN FAVOR OF THE AMENDMENT, PLEASE RAISE YOUR HAND.

AND WE SEE COMMISSIONER PEN.

YES.

THE FISHER AND MORE YETI AGAINST COMMISSIONER MUST GIRL.

I'M UNDERSTANDING THIS CORRECTLY.

CAUSE THE ONLY REASON I'M ASKING THE QUESTION, YOU JUST TALKED ABOUT HOW ALL CONTRACTS NEED TO BE REBID AFTER A YEAR.

NO, I WANTED THAT LOOKED AT AFTER A YEAR AND DO SOME MARKET RESEARCH AND THEN DECIDE WHETHER TO BID IT OR NOT.

OKAY.

UH, SO LET ME CODE IT OUT.

UH, COMMISSIONER AND MS. GENERAL AGAINST, SO BE FOUR TO THREE VOTE.

THANK YOU.

BASICALLY, THIS CONTRACT HAS ONE YEAR.

NOBODY WOULD BE BID ON THAT.

SO YEAH, THERE IS NO DIRECTION FROM THE COMMISSION CHAIR.

I, YOU KNOW, I, I SEE NO EVIDENCE THAT THE PROCESS THAT THE CITY FOLLOWED FOR THIS CONTRACT WAS ANYTHING OUT OF THE ORDINARY OR THAT THERE WAS ANY UNFAIRNESS OR ANYTHING SHADY.

THAT'S BEEN BROUGHT UP TO THE SEASONING.

I DON'T BASED ON THE NECESSITY AND THE URGENCY HIGH SUPPORT.

UM, THIS CONTRACT MOVING FORWARD AS IS, AND I WOULD LIKE TO MAKE A MOTION TO APPROVE ITEM B FIVE AS IS.

CAN WE, CAN WE, CAN WE DO ANOTHER MOTION? OKAY.

ALL RIGHT.

SO MOTION MADE IN MY COMMISSION.

I'M SURE TO APPROVE THE ITEM AS PROPOSED IN THE SECOND BY COMMISSIONER YETTA.

ANY OTHER FURTHER DISCUSSION, IF NOT, WE'LL VOTE.

UH, IF YOU ARE BOTH FOUR YEARS, PLEASE RAISE YOUR HAND SHOWING, UH, COMMISSIONER MICHELLE .

THAT MUST SQUIRREL IN THE PEN FOR YES.

AND, AND AGAINST SHOWING THE FISHER.

AND MONYETTE THANK YOU.

SO JUST TO BE CLEAR, BECAUSE THERE'S ONLY SEVEN COMMISSIONERS HERE TONIGHT, ALL SEVEN OF THEM, YOU HAVE TO GROW IN FAVOR OR AGAINST AN ITEM FOR IT TO GO FORWARD WITH THE RECOMMENDATION.

SO, BECAUSE THIS CLINIC, WE HAD A WARM HOME, THIS WILL GO FORWARD TO THE COUNCIL WITHOUT A RECOMMENDATION FROM THE COMMISSION.

UNDERSTAND THAT ANY VOTED DISCUSSION ON THIS ITEM, IF NOT, WE'LL MOVE ON TO THE NEXT ITEM, ITEM V6.

WE COME IN APPROVAL TO AWARD AN EXCUSE, A CONSTRUCTION CONTRACT WITH AUSTIN UNDERGROUND, INC FOR SPRINGDALE, N TWO 90 WATERLINE IMPROVEMENT PROJECT IN THE AMOUNT OF 6 MILLION, $437,898 FOR US SIX HUNDRED AND FORTY THREE, SEVEN HUNDRED EIGHTY $9 AND 80 CENTS CONTINGENCY FOR IN TOTAL CONTRACT AMOUNT, NOT TO EXCEED $7,081,687

[00:35:05]

AND 80 CENTS.

AND IT IS IN DISTRICT ONE.

AND I BELIEVE COMMISSIONER PENN QUESTION.

YEAH.

THANK YOU.

I JUST HAD A COUPLE OF CLARIFICATION QUESTIONS REGARDING THE BID FIS OR FIVE BID TAB.

UM, I DIDN'T SEE IT IN OUR, OUR INFORMATION, BUT I FOUND IT ONLINE.

I SAW THAT IT WAS COMPETITIVELY BID.

THERE WAS I THINK, SIX BITTERS ON THIS.

UM, AND SO I WAS JUST ONE QUESTION.

CAN WE GET THE CERTIFIED BID TAB ON FUTURE ITEMS IN THE PACKET WITH OUR, WITH THE BACKUP MATERIALS? YEAH.

AWESOME WATER DISTRIBUTION SYSTEM ENGINEERING, SUPERVISING ENGINEER.

SO THAT WAS, UH, UH, WE OVERLOOKED THAT.

SO THAT'S OBVIOUSLY WE'RE NOT TRYING TO SO THAT WAS JUST A MISSTEP ON OUR PART.

SO I APOLOGIZE.

EXCELLENT.

I, I, UH, I, I SAW THAT AND THEN I SAW THERE WAS A GOOD ENGINEERING ESTIMATE BY ENGINEERING SERVICES DIVISION ON THAT.

SO KUDOS TO THEM.

UM, ON THE OTHER QUESTION ON THIS WAS, UM, I NOTICED THAT ON SOME CERTIFIED BIDS, THEY'RE MORE GOING TOWARDS A LUMP SUM TALLY THAT THEY SHOW THE PUBLIC, IS THAT, AM I UNDERSTANDING THAT RIGHT VERSUS SHOWING UNIT PRICES? UM, SO I DON'T, OF COURSE I DO NOT HAVE A SUPERVISOR FOR THIS DIVISION FOR A COUPLE OF CONTRACTS, AS FAR AS THE CERTIFIED BIG TAB.

IT DEPENDS ON DEPENDS ON HOW LONG THE 300 , UH, APPROVED.

UH, SOMETIMES WE ASK FOR BASICALLY, UM, BUT MOST OF THE TIME THEY DO PROVIDE THAT INFORMATION.

UH, NO, I WAS JUST CURIOUS IF THAT WAS JUST A CHANGE IN THING, HOW THINGS WERE BEING DONE, OR IF IT IS JUST A MATTER OF THE BID FORM PER PROJECT, THAT'S WHAT YOU SEE IS WHAT, HOW THE BID FORM WAS SET UP.

IT'S A GREAT.

THANK YOU.

I JUST WAS LOOKING FOR THOSE CLARITY.

THANK YOU.

ANY MORE QUESTIONS? WHAT STUFF? I GOT A SIMILAR QUESTION TO THE STUFF IS WE DON'T, WE KNOW THE SIX RISK, UH, PARTICIPATE, BUT WE DON'T KNOW WHO THEY ARE AND WHAT THEY ARE SPREAD OF THE UPDATES.

AND THEN WHAT'S THE MBE WBE PARTICIPATION.

SO INSTEAD OF JUST MAKE SURE THAT YOU PUT IN THAT IN THE PACKAGE THERE, BECAUSE WE GOT TO SEE ME IN THAT SITUATION LAST MONTH FOR THE BODY ROLL, WHATEVER IMPROVEMENT.

AND THERE WAS NO, NO, UH, CERTIFIED BID PAD AVAILABLE.

SO YEAH, THAT'S ALL I HAVE A COMMISSION, ANOTHER GOT ANY OTHER QUESTIONS? IF NOT WE'LL MOVE APPROVAL.

WHAT WAS YOUR MADE BY COMMISSIONER PEN? AND I WAS, AGAIN IT AND ALL IN FAVOR, RAISE YOUR HAND AND WE SHOW A POOP AND MSB.

THANK YOU VERY MUCH.

THEN IT'S TO ITEM B EIGHT .

WE COME IN APPROVAL TO NEGOTIATE AND IT'S CUTE.

IT COSTS PUFFS PATIENT AGREEMENT WHO STILL STILLWATER, THE CAPITAL INVESTMENTS, LLC, FOR THE CITY TO REIMBURSE THE DEVELOPER FOR A MONTH, NOT TO EXCEED $1,936,850 FOR CODES ASSOCIATED WITH THE DESIGN AND THE CONSTRUCTION OF AN OVERSIGHTS LIFT STATION AND ENFORCEMENT RELATED TO SERVICE EXTENSION REQUEST NUMBER OF 5, 0 7, 8, BUT WILL PROVIDE WITH WATER SERVICE TO A PROPOSED EXTENSION DEPARTMENT LOCATED AT 1, 3, 3 38 OH SAN ANTONIO ROAD.

AND I BELIEVE COMMISSIONER SURE.

GOT A QUESTION.

YES.

THANK YOU.

UM, MY QUESTION IS RELATED TO THE SPLITTING OF COSTS FOR THE PROJECT.

SO THE BACKUP INFORMATION, UM, SAYS THAT THE CITY'S MAXIMUM PARTICIPATION CONSISTS OF

[00:40:01]

PART COSTS IN AN AMOUNT NOT TO EXCEED 73% OF THE HARD COSTS.

AND I WAS JUST CURIOUS, UH, IF THAT 73% CORRELATED TO THE UPSIZING, OR IF THAT 73% WAS JUST NEGOTIATED, YOU KNOW, HOW WE ARRIVED AT THAT PERCENTAGE OF COST BREAKDOWN, KEVIN KURT MINERALS FOR WATER, GENERALLY SPEAKING, OUR COST FORMULAS ARE DRIVEN BY CODE CALLING TO KIND OF TALK SPECIFICALLY ABOUT THE MATHEMATICS .

UM, SO IN MY DEVELOPMENT OUTAGES, OUR CLASS PARTICIPATION PERCENTAGES BASED ON WHAT THEY WERE ASKING FOR.

SO THERE ARE 27% OF THE TOTAL AND THERE WAS NO OTHER ITEMS, UH, CAPTURED BY THAT 73%, NOTHING OUT OF THE ORDINARY AGREED TO IT.

WASN'T NEGOTIATED ANYTHING DIFFERENT.

GOTCHA.

THANKS.

NO FURTHER QUESTIONS.

ANY OTHER QUESTIONS FOR STAFF? IF NOT IN THE 10 MOTION MOTION MADE AND MY COMMISSION THAT WE SHARE AND SECOND BY COMMISSIONER OF PAIN AND ALL IN FAVOR, PLEASE RAISE YOUR HAND SHOWING APPROVE AND MSP.

THANK YOU.

OKAY.

COMMISSION THAT IT'S UM, IT'S SHUFFLING THE AGENDA A LITTLE BIT TO THE SEGMENTATION FOREST.

WELL TO ITEM E ONE, AUSTIN WANTS TO SWITCH GO YEAR 20 21, 20 22 PROPOSED BUDGET.

WAIT ONE SEC.

I'M JUST TRYING TO PULL UP THIS PRESENTATION.

JOSEPH GONZALEZ, AUSTIN WATER ASSISTANT DIRECTOR OF FINANCIAL SERVICES.

GOOD EVENING COMMISSIONERS.

AND IT'S NOT GOING TO BE FINDING AN OVERVIEW OF AUSTIN WATER'S PROPOSED BUDGET.

IN ADDITION TO SEEKING RECOMMENDATION FROM THE COMMISSION REGARDING HOSTILE WATERS PROPOSED, I'LL BE GIVING A PRESENTATION WITH AN OVERVIEW OF THE PROPOSED BUDGET AND I'M ON SLIDE TWO AUDIO ON SLIDE TWO, I'LL BEGIN WITH THE PRESENTATION PROPOSED BUDGET FOLLOWED BY HIGHLIGHTS OF THE PROPOSED FIVE-YEAR CAPITAL IMPROVEMENT PLAN AND INCLUDE WITH AN UPDATE RELATED TO ONGOING EFFORTS AND, UH, ADDITIONAL PROPOSED FINANCIAL POLICY CHANGES THAT ARE INCLUDED IN THOSE BUDGET SLIDE THREE.

SO THAT'S A GOAL.

THE ANNUAL BUDGET PROCESS IS TO ENSURE THAT THE BUDGET SUPPORTS THE UTILITIES, MISSION ITS GOALS AND PRIORITIES THROUGH THE ALLOCATION OR FINANCIAL RESOURCES.

SO THROUGHOUT THE BUDGET PROCESS, OUR, OUR PRIMARY FOCUS REALLY HAS BEEN, UM, YOU KNOW, TO JUST SUPPORT, UH, YOU KNOW, OPERATIONAL INFRASTRUCTURE RESILIENCY.

UH, WE'VE, WE'VE JUST BEEN A STRATEGIC ADDITION TO ROSS WATER OVER THE LAST FEW YEARS.

AND WE ALSO WORKED THROUGHOUT THE BUDGET PROCESS TO ENSURE THAT THAT THIS PROPOSED BUDGET CONTRIBUTES TO OUR CONTINUED, UH, FINANCIAL HEALTH, UH, WHILE ALSO MAINTAINING AFFORDABLE RATES FOR OUR CUSTOMERS.

MOVING ON SLIDE FOUR, UH, PROPOSED BUDGET HIGHLIGHTS AGAIN, UM, ENTERPRISE RESILIENCY HAS BEEN A STRATEGIC INITIATIVE AND AUSTIN WATER FOR THE LAST FEW YEARS IN THIS BUDGET SUPPORTS THOSE EFFORTS WITH TWINS, 12 MILLION IN FUNDING AND FUNDING, UH, JUST SUPPORT ENTERPRISE RESILIENCY, UH, WITH NINTH GRADE ONLY OF THAT FUNDING ONGOING FUNDING THAT WE AREN'T ASKING FOR AN ADDITIONAL 2.7 MILLION, UH, MOST OF WHICH IS RELATED TO 18, UH, NEW FTES.

AND THEN WE'LL GO INTO A LITTLE BIT MORE DETAIL ABOUT THAT SHORTLY.

UH, IN ADDITION, THE, THE FIVE-YEAR CIP, UH, PROPOSED SPENDING PLAN INCLUDES OVER $350 MILLION OF

[00:45:01]

PROJECTS TO SUPPORT, UH, THE ENTERPRISE RESILIENCY.

UM, AND THEN, YOU KNOW, THERE AGAIN, WE'VE GOT SOME INFORMATION ON LATER SIZE, A LITTLE BIT MORE INTO DETAIL ON THOSE EFFORTS.

UM, YOU KNOW, FROM US WATERS, CONTINUING TO FOCUS ON DEBT MANAGEMENT STRATEGIES TO, UH, OVER THE LAST FIVE YEARS, WE'VE WORKED TO SIGNIFICANTLY REDUCE, UM, YOU KNOW, OUR OVERALL LEVEL DEBT SERVICE COSTS THROUGH THE USE OF CAPITAL RECOVERY FEES TO FEES DEBT.

UM, IN OTHER WORDS, MAKING EXTRA PAYMENTS TO PAY OFF EXISTING DEBT, UH, TO, THROUGH THE USE OF BOND THREE FOR THE TRANSACTIONS TO REFINANCE EXISTING DEBT AT LOWER INTEREST RATES, MUCH LIKE A REFINANCE, A CAR LOAN OR A HOME LOAN TAKE ADVANTAGE OF THE MARKET RATES TO REFINANCE EXISTING DEBT.

UM, AND FINALLY, UH, WE'VE WORKED TO MANAGE OUR DEBT SERVICE COSTS THROUGH INCREASED USE OF TEXAS WATER DEVELOPMENT BOARD .

AND, AND THEN OF COURSE, UH, FOR, FOR F 22, WE ARE NOT POSING A RATE INCREASE THIS B UH, THE FOURTH YEAR, UH, WITH NO RATE INCREASES SINCE OUR FYI 18 RATE PRODUCTIONS, WE HAD, YOU KNOW, 4.8% RATE REDUCTION IN FYE TEAM AND, UM, AND NOT HAD A GREAT INCREASE SINCE THEN.

UM, IN FACT, WE AREN'T ANTICIPATING, UH, A RATE INCREASE OR FOR FYI 23 ALSO PROJECTIONS ARE FORECAST 24 BREATHING, MOVING ON SLIDE FIVE, WE'RE POSTING 62 NEW, UH, FULL-TIME POSITIONS.

UH, 37 OF THOSE POSITIONS HAVE SUPPORT TOTALLY IS ONGOING EFFECTIVE FACILITY MANAGEMENT EFFORTS, UH, SUPPORTING ENTERPRISE RESILIENCY, SUPPORTING INFRASTRUCTURE STRATEGY AND PERFORMANCE, UH, CUSTOMER SERVICE AND DEPLOY LEADERSHIP AND DEVELOPMENT.

AND ADDITIONAL 10 POSITIONS ARE PROPOSED TO REDUCE OUR CONTRACTED SECURITY SERVICES AND BRING IN SOME OF THOSE LEAD POSITIONS IN HOUSE.

UH, IN ADDITION TO THE PROPOSED BUDGET INCLUDES, UH, FIVE, UH, FIVE POSITIONS TO SUPPORT OUR AMI PROJECT OR PROJECT.

UM, AND THEN FINALLY, UH, FIVE ADDITIONAL POSITIONS.

WE ON TO SLIDE SIX, THIS SLIDE PROVIDES A OVERVIEW OF OUR PROPOSED REVENUE FOR, FOR FYI 22.

AND YOU CAN SEE THAT THERE'S A $10 MILLION INCREASE IN WATER SERVICE REVENUES AS COMPARED TO CURRENT YEAR BUDGET.

UH, THERE'S $8 MILLION INCREASE IN WASTEWATER SERVICE REVENUE IS COMPARED TO CURRENT BUDGET.

UM, BUT, BUT THERE IS A TWO, TWO AND A HALF MILLION DOLLAR INCREASE IN REVENUE FOR A TOOL.

UH, YOU'RE TOTALLY INCREASE, UH, 20 MILLION, I'M SORRY, UH, 15 MINUTES.

SORRY.

UM, AND, AND THAT DECREASE IN MISCELLANEOUS REVENUE IS ATTRIBUTABLE TO LOWER INTEREST INCOME YOU'RE BASED ON MARKET CONDITIONS AND LOW INTEREST RATES FROM OUR INVESTMENTS FROM, FROM AN EXPENDITURE PERSPECTIVE, UH, OVERALL THERE'S A NEW, ROUGHLY $33 MILLION INCREASE IN THE CENTRAL BUDGET.

UH, MOST OF THAT IS DRIVEN BY, UH, THE DEFERRAL, UH, PLAN DEFEASANCE IN THE CURRENT YEAR IN FYI 21, WE HAD A $35 BILLION TRANSACTIONAL BUDGETED, UH, BUT DUE TO MARKET CONDITIONS WHEN INTEREST RATES ARE LOW, UM, FEES AND TRANSACTIONS AREN'T AS EFFICIENT.

UM, SO WE GET WORKING WITH OUR FINANCIAL ADVISORS.

WE DECIDED TO DEFER THE PLAN , UM, AND TAKE ADVANTAGE OF SOME, SOME MATURITIES THAT ARE CALLABLE IN THE FALL.

AND SO THE INTEREST RATES THOSE COME INTO PLAY AS MUCH.

UM, SO PLANNING ROUGHLY A $35 MILLION DEFEASANCE, THAT'S THE DEFERRED FEES THAT'S FROM, FROM CURRENT YEAR, UH, AS WELL AS AN ADDITIONAL, UH, $30 MILLION DEFEASANCE IN THE SPRING OF OUR NORMAL FEES INSTEAD, UH, WHOSE BUDGET ALL SEEN THEM USE A $14 MILLION INCREASE IN OUR OPERATING PROGRAM EXPENDITURES.

UM, HOWEVER, THAT INCREASES IS ALL SET BY 12 OF THE DOLLAR DECREASES IF THAT SERVICE, UH, YOU KNOW, AS A RESULT OF OUR ONGOING, UH, DEBT DEBT MANAGEMENT EFFORTS.

[00:50:02]

UM, MOVING ON TO SLIDE LINE, UM, TALK A LITTLE BIT ABOUT OUR CAPITAL SPENDING PLAN.

DOES THE TOTAL CAPITAL SPENDING PLAN FOR A FULL FIVE-YEAR PERIOD FOR ALMOST A 1.1 BILLION.

I MENTIONED EARLIER, ENTERPRISE RESILIENCY HAS BEEN STRATEGIC CONDITION TO THE LOSS OF WATER OVER THE LAST FEW YEARS.

AND, YOU KNOW, THOSE EFFORTS WERE REALLY REFLECTED IN THIS PROPOSED SPENDING PLAN.

UH, AS I SAID EARLIER, UH, THIS BIG THING WAS OVER $350 MILLION IN PROJECTS THAT WE'VE IDENTIFIED AS RESILIENCY PROJECTS.

UM, BUT IN ADDITION TO, UH, ANOTHER, ALMOST FOUR QUARTER MILLION DOLLARS RELATED TO OUR WASTEWATER TREATMENT PLANT PROJECTS, BOTH IN SIGNIFICANT PROJECTS AT WALNUT CREEK, AUSTIN REGIONAL, THEN WE DIDN'T CATEGORIZE THOSE FOR THE PURPOSES PROJECTS, BUT THEY ARE GROWTH PROJECTS.

AND, UM, SO FROM THAT PERSPECTIVE, YOU CAN ALMOST ARGUE THAT ALMOST CERTAIN PARENTS, UH, CAPITAL'S BUDGET IS REALLY RESILIENT, NO TERMS, UH, WELL, THAT SPENDING PLAN IS ALLOCATED THIS SLIDE SLIDE 10 BREAKS DOWN THE FIND YOUR CIP PLAN, GET THE CIP CATEGORY.

NOW OUR BIGGEST INVESTMENT IS RELATED TO THE WATER AND WASTEWATER PIPELINE PROGRAM.

THIS PLAN SPENDING OF OVER 383 MILLION NOW 81 MILLION, THAT FUNDING IS DEDICATED TO RENEWING OFFS OF THE PROGRAM TO, UH, REPAIR REPLACE AGING, UH, WATER PIPELINE INFRASTRUCTURE THROUGHOUT THE CITY.

AND AS I MENTIONED, THE METAPHORIC TWENTY-FIVE MILLION DEDICATED TO WASTEWATER TREATMENT PLANTS 235 30 MILLION AT WALNUT CREEK, 35 YEAR PERIOD, AND ANOTHER A HUNDRED MILLION AT SOUTH AUSTIN REGION, UM, FROM A RESILIENCY PERSPECTIVE, EITHER PILOT.

SO SOME OF THE RESILIENCY PROJECTS ON SLIDE 11, UM, INCLUDING YOU WANT TO MENTION RENEWING AUSTIN, UM, PIPELINE RENEWAL PLACEMENT PROJECTS ABOUT 81 BILLION, UH, ANOTHER 63 MILLION IN THE FIVE-YEAR SPENDING PLANS OR ADVANCED METERING INFRASTRUCTURE OR AMI WATER MITX WATER PROJECT.

IN ADDITION, UH, ELECTRICAL PROJECTS OUT OF AUSTIN, REGIONAL, UM, VARIOUS STORAGE PROJECTS, ALMOST 29 MILLION SCALE IMPROVEMENTS TOTALED 23 MILLION.

UM, AND THEN, YOU KNOW, ALL RICK, UH, YOUR WATER TREATMENT PLANT, LOW SERVICE PUMP STATION, ELECTRICAL FEVER, THE OLD, AND THIS, ALL OF THESE PROJECTS OR PROJECTS THAT WERE ONGOING THROUGH PRUITT, UH, IN THE CURRENT YEAR, UH, WITH NEW CONTINUED FUNDING THROUGHOUT THE FIVE-YEAR PERIOD, WE DID BRING IN, UH, FIVE ADDITIONAL PROJECTS AND FOLLOWING THE WINTER STORM, UM, PROJECTS THAT, UH, YOU KNOW, WE, UH, ACCELERATED.

SO THEY WERE, UM, THEY WERE HORIZON PROJECTS, UH, INITIALLY PLANNED TO BE INCLUDED IN MY FIVE-YEAR CAPITAL SPENDING PLAN OF YOUR PROJECTS THAT YOUR POSTS WERE STORM.

WE FELT LIKE THEY NEEDED TO BE ACCELERATED.

AND THOSE PROJECTS INCLUDE, UM, SARAH STREET PUMP STATION REPLACEMENT AND ELECTRICAL IMPROVEMENTS ABOUT 12 MILLION IS THE BIGGEST PROFIT, UH, AS WELL AS, UH, TWO SOUTHWEST PARKWAY PROJECTS AND TRANSITIONING PROJECT 3 MILLION AND THE ELEVATED RESERVOIR 3.4 MILLION.

NOW, YOU KNOW, OUR, OUR, WHAT IS IT? ACTION EFFORTS ARE ONGOING REVIEW IS, IS ONGOING.

UH, WE DO NOT ANTICIPATE THAT THIS IS GOING TO BE THE LAST THAT, UH, YOU KNOW, THE LAST RECOMMENDED PROJECTS COME OUT OF THAT PROCESS, YOUR FOOD FUTURE PROJECTS, OR, OR, YOU KNOW, WHATEVER RECOMMENDATIONS TO, TO COME FORWARD, UM, EITHER IN THE FORM OF A BUDGET AMENDMENT OR, UM, CERTAINLY, UH, YOU KNOW, AS WE MOVE TO PREPARE NEXT YEAR'S BUDGET, UH, WE'LL TAKE THAT WORK AND, UH, GET A PEN IS SIGNIFICANT.

UM, JUST TO GIVE AN IMPACT FOR THE PROPOSED BUDGET FOR, FOR NEXT YEAR, MOVING FORWARD TO MAINTAIN FINANCIAL STRENGTH, UH, YOU KNOW, ON THOSE SLIDES, UM, THIS, THIS SLIDE SHOWS THE IMPACT OF OUR DEBT MANAGEMENT EFFORTS AND THOSE GOOD MANAGEMENT EFFORTS REALLY PLAYS A ROLE, UH, FINANCIAL CONDITION AND FINANCIAL HEALTH.

UM, OVER THE LAST FIVE YEARS, AGAIN, WE'VE WORKED

[00:55:01]

WITH REDUCED OUR OVERALL LEVEL OF DEBT SERVICE REQUIREMENTS, UM, THROUGH THE USE OF CAPITAL COMMITTEES TO DIFFUSE THAT, UM, RE FUNDING TRANSACTIONS TO, TO LOWER THE INTEREST COSTS ON OUR EXISTING DEBT AND END, AS WELL AS THE INCREASED USE OF LOW INTEREST XYZ.

AND JUST TO GIVE YOU A SENSE OF, OF, OF, OF THIS LIE, THEY DID ALIGN ON TOP REPRESENTS THE PROJECTED LEVEL OF DEBT SERVICE, UH, THAT IS INCLUDED IN OUR FINANCIAL FORECAST BACK IN 2016.

AND SO YOU CAN SEE THAT, UH, YOU KNOW, AT THAT TIME THAT SERVICE COSTS WERE WHERE THE 200 $3,100 RANGE AND PROJECTED TO GO, UH, YOU KNOW, ABOUT $240 MILLION BLUE BARS AT THE BOTTOM REPRESENT THE ACTUAL DEBT SERVICE COSTS THAT, UH, THAT WE'VE INCURRED AND, UM, AND SCHEDULED THAT SERVICE COSTS TO THE NEXT FEW YEARS, UM, AS A RESULT OF OUR DEBT MANAGEMENT EFFORTS.

AND THEN THE GREEN BAR IN BETWEEN REPRESENTS THE SAVINGS, WHICH A DAY SINCE, SINCE THESE EFFORTS BEGAN IN 2016, UH, YOU KNOW, WE SAY, UH, ALMOST $571 BILLION IN DEBT SERVICE COSTS, UM, DURING, THROUGHOUT FORECAST PERIOD, UM, I'M GONNA HIGHLIGHT REALLY DISAPPEARED BECAUSE OF THAT.

SO IF YOU LOOK FOR EXAMPLE, THE FORECAST, UH, FOR FYI 22, UH, YOU KNOW, THE, THE ACTUAL, UM, SCHEDULE THAT SERVICE NOW, UH, IS JUST MORE THAN LIKE 160 MILLION, UH, WITH $69 MILLION IN SAVINGS AS COMPARED TO WHERE WE THOUGHT WE WOULD BE AT THIS TIME BASED ON THE 2016 FORECAST.

UH, SO THAT 69 BILLION, WHEN YOU FACTOR IN, AND I'LL TALK A LITTLE BIT ABOUT DEBT SERVICE COVERAGE LATER, BUT WHEN YOU FACTOR IN THAT SERVICE COVERAGE, WHICH IS ONE OF OUR KEY FINANCIAL METRICS AND ALL THAT, WHAT THAT METRIC MEASURES IS, HOW MUCH MONEY DO WE HAVE LEFT OVER AFTER PAYING FOR OPERATING EXPENSES TO COVER DEBT SERVICE? UM, OUR FINANCIAL POLICY CURRENTLY SAYS WE SHOULD HAVE AT LEAST ONE AND A HALF TIMES A DEBT SERVICE COVERAGE, UM, LEFT OVER TWO AND HALF TIMES OF AVAILABLE FUNDING, UM, TIMES OUR EXISTING CURRENT DEBT SERVICE ABOUT, UH, SO THAT SIX TO $9 MILLION, YOU KNOW, UM, WOULD FACTOR IN AND I'LL USE THE 1.75 NUMBER BECAUSE AS WE'LL TALK ABOUT LATER, WHERE RECOMMENDING A CHANGE, AND THOSE ARE YES OF DISCOVERED FINANCIAL POLICY FROM THE CURRENT AMOUNT, 1.5 TO 1.75.

UM, SO BASED ON THE PROPOSED FINANCIAL POLICY CHANGE, UH, IF YOU, UH, TOOK THAT $69 MILLION IN SAVINGS TIMES WITH 1.75 DEBT COVERAGE, UH, THAT WOULD EQUATE TO 121 ADDITIONAL MILLION DOLLARS THAT WE WOULD HAVE TO COLLECT IN REVENUE TO MAINTAIN THAT 1.75 COVERAGE, OR, YOU KNOW, WE WOULD MORE LIKELY HAVE TO DO A COMBINATION OF THINGS, HAVE, YOU KNOW, COMBINATION OF HIGHER REVENUES TRYING TO REDUCE COSTS, UM, BUT ALSO BE WELL BELOW YOUR CURRENT FINANCIAL POLICY TARGET OF ONE AND A HALF TIMES.

SO, UH, I CAN'T OVEREMPHASIZE HOW MUCH THE DEBT MANAGEMENT EFFORTS HAVE IMPACTED AUSTIN WATER'S FINANCIAL CONDITION FROM A COVERAGE PERSPECTIVE, BUT ALSO FROM A LEVEL OF YOUR RESERVES PERSPECTIVE.

UM, SO IT'S, IT'S PROBABLY THE SINGLE BIGGEST FACTOR THAT'S CONTRIBUTED TO BE APPROVED.

AND MOST OF THE WATERS, A FINANCIAL CONDITION DATING BACK TO 20 14, 20 15, WHEN WE WERE ON THE NEGATIVE WATCH FROM A RATING AGENCY, DEFERENCE ARE ONGOING, AND WE'RE CONTINUING TO LOOK AT, UM, GOOD PHASES, UH, OPPORTUNITIES, FUNDING OPPORTUNITIES, AND, AND WONDERFUL OPPORTUNITIES.

SPEAKING OF WATER, UH, WATER DEVELOPED FOR MORE, UH, GOLDEN OPPORTUNITY ON SLIDE 15, UH, THIS MIGHT SHOW, UH, THE SAVINGS THAT WE ACHIEVED, UH, OVER THE LAST FIVE YEARS THAT WE HAD $126 MILLION TODAY AND HAVE REALIZED SAVINGS ALMOST 21 MILLION AS COMPARED TO OUR TRADITIONAL, UH, FINANCING.

IN ADDITION, WE ARE ANTICIPATING $71 BILLION IN SAVINGS, UH, IN NOVEMBER WITH, UH, YOU KNOW, AN ANTICIPATED SAVINGS, UH, $5.

THEY ARE YOU'VE COME FEBRUARY.

[01:00:01]

YOU'LL PROBABLY BE ON THE HIGHER END OF THAT NUMBER.

AND THEN AGAIN, I MENTIONED THAT PART OF THE BUDGET PROCESS WE PROPOSED, UH, FOR UPDATES TO OUR FINANCIAL POLICIES FOR THE PROCESS TO UPDATE FINANCIAL POLICIES IS PART OF THE ANNUAL BUDGET PROCESS AND FREE OF THOSE FOUR PROPOSED UPDATES ARE RELATED TO KEY FINANCIAL INDICATORS THAT WE USE TO MEASURE OUR FINANCIAL CONDITION LOOKING AT, YOU KNOW, WHEN ASSESSING OUR CREDIT RATING.

AND THE FOURTH ONE IS RECOMMENDATIONS TO STREAMLINE MORE IN COMMISSION REVIEW PROCESS, UH, FOR CAPITAL PROJECTS WITHIN THE DRINKING WATER PROTECTION ZONE.

NOW PROPOSE CHANGES TO DEBT SERVICE COVERAGE DAY'S CASH ON HAND, UH, CASH FINANCING AT THE CIP PROJECTS ARE ONLY INTENDED TO BETTER ALIGN WITH CURRENT MANAGEMENT TARGETS.

SO FOR EXAMPLE, DEBT SERVICE COVERAGE, FINANCIAL POLICY IS 1.5 TIMES COVERAGE.

UH, WE'RE PROPOSING 1.75, WHICH IS JUST, UH, OF OUR MANAGEMENT TARGET OF 1.85.

WE'RE CURRENTLY, UH, CURRENTLY IN 180 5 RANGE.

SO, UH, THESE PROPOSED CHANGES ARE ALL IN LINE AND THE TARGETS AS WELL AS PERFORMANCE, UH, FROM THE DAY'S CASH ON HAND PERSPECTIVE OF 180 DAYS, BUT THE TARGETING 245 DAYS, UM, AND THEN CASH FINANCING AND CIP PROJECTS, UM, CURRENT POLICY SAYS PERCENT.

UM, AND WE TAKE YOU IN ORDER TO BETTER BALANCE, UH, YOU KNOW, OUR LONG-TERM, UH, CAPITAL COSTS FOR LONG-TERM DEBT SERVICE COSTS, UM, AS WELL AS AFFORDABILITY THAT, UH, YOUR RANGE OF 35 TO 50%, UH, ALLOWS US TO BETTER .

THEN AGAIN, PROJECTION IS REALLY JUST STREAMLINING EXISTING CITY .

AND THEN AS I MENTIONED EARLY, THE ONSET, THE AFFORDABILITY IS, IS ONE OF OUR KEY PROCESS OF THE SLIDING TEAM.

AS I MENTIONED EARLIER, ALSO THE WATER IS NOT CLOSING ANY SURFACE RATE INCREASES.

UM, AGAIN, THAT MARKS MORE STRAIGHT HERE WITHOUT A RATE INCREASE, UH, 4.8% REDUCTION.

UM, AND WE'RE CURRENTLY NOT PROJECTED RATING INCREASE, UH, MOVING ON TO SLIDE 19 OR CUSTOMER ASSISTANCE PROGRAMS. AGAIN, WE'RE NOT CUSTOMER ASSISTANCE PROGRAM.

UM, HOWEVER DID WANT TO HIGHLIGHT THAT IN THE CURRENT YEAR WE EXPANDED OUR CUSTOMER SYSTEMS PROGRAM TO INCLUDE MULTIFAMILY CUSTOMERS, UH, THAT ARE NOT, UH, THAT DON'T HAVE AN AUSTIN WATER ACCOUNT BECAUSE THEY'RE NOT AS THEY ARE SERVED BY A MASTER LEADER AND THEREFORE THEY DON'T RECEIVE A BILL FROM THE HOSPITAL.

SO THIS INITIATIVE WILL PROVIDE ABOUT $3 BILLION IN CREDITS, UM, INFORMAL MONTHLY CREDIT ON THE AUSTIN ENERGY PORTION OF THEIR BILL.

UM, AND, AND THIS IS, THIS IS A, UH, INITIATIVE WE'RE WORKING ON FOR SEVERAL YEARS, IT'S FUNDED BY OUR COMMUNITY CHARGED RESIDUE.

UM, SO WE, WE HAVE THE FUNDING TO COVER THE COST ASSOCIATED WITH THIS PROGRAM.

UM, AND THEN FINALLY WOULD BE IF WE'RE ABILITY BENCHMARKS IS, UM, IS, UH, THE PERCENTAGE OF THE AVERAGE BILL AS A PERCENTAGE OF MEDIAN HOUSEHOLD INCOME.

AND YOU CAN SEE THAT THE P UH, YOU KNOW, UH, ABOUT 1, 4, 7 FYE TEAM, UH, FOLLOWING THE FYE TEAM, UH, PRODUCTION, UH, THAT SINCE THEN, BECAUSE WE DIDN'T HAVE SOMEBODY COME IN THE AREAS AS IT INCREASED OVER TIME, UM, WHILE WE HADN'T HAD ANY RATE INCREASES, UM, YOU KNOW, THAT THAT PERCENTAGE IS, IS, IS GOING DOWN, UM, TO BELOW 1.3%.

SO, YOU KNOW, WE MADE CONTINUED IMPROVEMENT IN THIS METRIC, IS IT REALLY, OUR GOAL IS TO TRY AND ENSURE THAT YOUR RATE INCREASES ARE GROWING AT A RATE SLOWER THAN THE FUND SUMMARY DOES NOT.

SOMEBODY PROVIDES A ON SLIDE 21 ON SUMMARY PROVIDES A HIGH LEVEL OVERVIEW OF THE PROPOSED BUDGET, UH, SHOWING POST REVENUES, UH, EXPENDITURES OR REQUIREMENTS IN INDIAN POUNDS.

SO THE FUND SUMMARY IS IT IS, UH,

[01:05:01]

SHOWS WHERE WE ARE FROM FINANCIAL CONDITION AND IN TERMS OF OUR, OUR ENDING BALANCE BALANCE, UH, WE WERE EXPECTING, YOU KNOW, WHEN WE PREPARE LAST YEAR'S BUDGET, WE'RE EXPECTED TO IN THE YEAR, UH, 199 MILLION IN THE FUND BALANCE, UH, BECAUSE, YOU KNOW, WE, WE REDUCED EXPENDITURES, UH, AT THAT POINT, UH, WE BECAME A LITTLE BIT HIGHER WITH A PAPER BEGINNING BALANCE.

YOU CAN SEE THAT WE WERE EXPECTING THE BEGINNING BALANCE OF ABOUT $206 MILLION, UH, BUT THE ACTUAL DOLLARS, UM, AND ALONG WE HAD SOME PLANNED EXPENDITURES, UH, FROM A COVID RESPONSE, UH, PERSPECTIVE IN TERMS OF SUPPORTING CUSTOMERS IMPACTED, UH, BY, BY THE PANDEMIC.

UH, WE HAD CERTAINLY COSTS ASSOCIATED WITH WINTER STORE.

UH, IN ADDITION, WE TOOK ADVANTAGE OF SOME OF THAT FUND BALANCE BALANCE THAT, THAT OCCURRED, UM, COMING INTO THE YEAR TO PREPAY SOME OF OUR FYI 21 DEBT, REDUCING DEBT SERVICE IN THE FUTURE HERE, UM, WITH, WITH, UH, EXCESS CLINT BALANCE THAT WAS GENERATED PRIOR HERE.

SO, UM, ALL NORMAL PROJECTING IN FYI 22 WITH $228 MILLION FUND BALANCE, WHICH INCREASED ONE.

AND I THINK IT'S A MEASURE OF OUR CONTINUED MENTAL HEALTH, UM, THIS BUDGET, YOU KNOW, AGAIN, SUPPORTS OUR MISSION PRIORITIES AND GOALS, RESILIENCY, UM, OUR FINANCIAL CONDITION AND AFFORDABILITY.

OKAY.

COMMISSIONER, IF YOU DON'T MIND, LET'S ONCE KUDA ITEM D FORCED, BEFORE WE GO, COME BACK, COME BACK TO THE B LINE IS WHEN WE DO THE VOLTAGE, IF THAT IS THAT OKAY, I'M HAPPY TO DO ANYTHING.

OKAY.

SO, AND I'LL GO AWAY STATEMENT, UH, LET'S MOVE ON TO ITEM B ON APPROVE THE JUNE 30TH, 2021 BUDGET COMMITTEE DRAFT MEETING MINUTES BY THE BUDGET COMMITTEE MEMBERS, COMMISSION, NOT THROUGH YET THAT YOU CUT THAT OUT.

UM, DO I HAVE A MOTION FROM THE BUDGET COMMITTEE TO APPROVE SECOND? I'LL SECOND.

ALL IN FAVOR.

OKAY.

ARE YOU LOOKING FOR JUST BUDGET COMMITTEE PEOPLE? I DON'T THINK IT MATTERS BECAUSE YOU DON'T HAVE TO BE IN IF YOU NEED ANY MORE TO VOTE ON THE MINUTES.

UM, AND, UH, BOTH DO IT.

LET'S DO FOR OTHERS HAVING A HARD TIME KEEPING UP.

THANK YOU.

COMMISSIONER PEN, MYSELF, COMMISSIONER, MICHELLE, COMMISSIONER FISHER, AND COMMISSIONER MINORITY, AND ANY AGAINST NO AGAINST.

AND SHOULD I JUST MOVE IN BY ME? UM, OKAY.

MOVING INTO ITEM TWO APPROVAL OF THE BUDGET COMMITTEE REPORT FOR FISCAL YEAR 2122, UM, IN YOUR, AT THE VERY END OF YOUR PACKET, YOU CAN SEE A SUMMARY FROM THE BUDGET COMMITTEE, UH, REPORT, UH, THAT WE WOULD LIKE TO REVIEW, UH, POSSIBLY AMEND AND, UM, PROVIDE TO COUNCIL AS OUR, AS OUR SUMMARY.

UM, UH, WE MET SEVERAL TIMES WITH JOSEPH AND SEE OTHER CITY STAFF TO TALK ABOUT CHANGES IN THE BUDGET FROM THE FALL OF THE PREVIOUS YEAR AND, AND WHAT'S DIFFERENT, AND THERE IS QUITE A BIT DIFFERENT.

AND SO SOME HIGHLIGHTS I'D LIKE TO POINT OUT IS, UM, IN 2021, OUR, OUR TRANSFERS TO DEBT DEFENSE WERE POSTPONED BECAUSE OF COVID AND THE UNCERTAINTY OF THE ECONOMY.

NOW, IF YOU GUYS REMEMBER THAT, UM, SO WE'RE, WE'RE CATCHING UP DOING THAT AT THIS POINT.

UM, THERE WAS ALSO A, UH, $5 MILLION TRANSFER TO THE CUSTOMER ASSISTANT PROGRAM.

IT WAS A ONE-TIME TRANSFER, UM, AND THEN A CAP REDUCTION RATE OF 10%.

IT WAS APPROVED IN APRIL BY THE COMMISSION AND IS STILL BEING MAINTAINED THROUGH 2022.

UM, THERE, OBVIOUSLY, AS JOSEPH TALKED ABOUT, THERE IS NO, UH, WASTEWATER OR WATER RATE INCREASE FOR, UH, .

UM, THERE WAS AN INCREASE, UH, 32 MILLION AND FROM THE 21 BUDGET, BUT THIS WAS DRIVEN BY A 20 POINT $29.8 MILLION

[01:10:01]

TRANSFER FOR DEBT.

SO THE TEASING, SO, UM, WE'RE JUST CATCHING UP BASICALLY.

UM, UH, WE'RE DOING OKAY BECAUSE OUR, ONE OF THE REASONS WE'RE STILL SEEING GROWTH, EVEN THOUGH THE ECONOMY IS KIND OF NOT THE WAY IT SHOULD BE WITH COVID IS WE'RE GROWING, THE CITY IS GROWING, SO WE'RE GETTING MORE CUSTOMERS.

UM, AND, UH, SO WE'RE DOING, DOING WELL.

UH, WE'RE POSITIONED WELL AS JOSEPH'S DISCUSSED, THERE'S 62 FULL-TIME POSITIONS IN THIS BUDGET.

UM, OVER HALF OF THEM ARE FOR THE EFFECT OF UTILITY MANAGEMENT INITIATIVE.

AND THOSE ARE FOR NEW EMPLOYEES FOR WATER FORWARD CUSTOMER SERVICE PROGRAM STRENGTHENING PHYSICAL SECURITY AND ADMINISTRATIVE SERVICES, UM, UNDER THE EMERGENCY, THE EFFECTIVE UTILITY MANAGEMENT INFRASTRUCTURE STRATEGY AND PERFORMANCE INITIATIVE.

ALSO AN ADDITIONAL 2 MILLION IS GOING TO INCREASE TO GREAT, UH, WATER RESTORATION SERVICE DIVISIONS.

SO THERE'S GOING TO BE A NEW DIVISION WITHIN THE UTILITY.

I THOUGHT THAT WAS KIND OF, UM, ON RESILIENCY.

UM, JOSEPH TOUCHED ON THIS, BUT I WANT TO MAKE SURE THAT THIS IS CLEAR.

THERE IS CURRENTLY 18.8 MILLION OF NEW CAPITAL EXPENDITURES TO ADDRESS THE WINTER STORM, BUT THERE WILL BE ADDITIONAL AS THAT COMMITTEE MOVES FORWARD.

THERE VERY WELL MIGHT BE AN AMENDMENT TO OUR BUDGET DURING THE YEAR TO DO MORE PROJECTS FOR THE RESILIENCY DUE TO THE STORM.

UM, THOSE ARE PRETTY MUCH, I THINK THE HIGHLIGHTS THAT, I MEAN, JOSEPH TOUCHED ON EVERYTHING, BUT I JUST WANTED TO MAKE SURE THAT THOSE RENDERS, YOU SAID THEY'RE NOT NORMAL.

I KNOW THERE WAS ONE, UM, MOTION, TRAVIS, MICHELLE HAD A MOTION TO MAKE AN AMENDMENT TO IT.

I'LL JUST MENTION MR. T THERE WERE A UNPAID THREE OF THREE IN THAT REPORT UNDER FINANCIAL POLICY UPDATES, JUST SOME MINOR TEXT EDITS.

UH, FIRST SENTENCE UNDER THAT SECTION SAYS, AUSTIN WATER CONTINUES TO US CAPITAL RECOVER FEES AND SHOULD BE USED.

AND THEN THEY SENTENCE AFTER THAT, THE SECOND SENTENCES AS AWS CONTINUES.

AND I JUST WANT TO ADD THE WORD TO MAINTAIN ITS FINANCIAL STABILITY.

UH, THOSE ARE THE ONLY, UH, AMENDMENTS THAT I PROPOSE IS THAT OPEN FOR DISCUSSION.

ANYBODY HAVE ANY OTHER AMENDMENTS OR QUESTIONS ABOUT THE SUMMARY? I'D LIKE TO MAKE A MOTION TO APPROVE THE BUDGET COMMITTEE REPORT AS AMENDED SECOND, ALL THOSE IN FAVOR, EVERYBODY LOOKS LIKE YOU'RE PRESENT.

THANK YOU.

OKAY.

THANK YOU FOR THE BUDGETS TO SHOULD NOT RITA VICE CHAIR.

WE SHOULD HAVE TO SHARE.

AND, UH, WE SHARED A FISHER MORIARTY AND THE PAIN BECAUSE YOUR HAIR OFF THAT MAKES IT ALL MUCH EASIER FOR YOU STILL HAVE IN THE, IN THE ADDITIONAL BUDGET SHOP.

WHATEVER.

NOW OUR LIFE IS MUCH EASIER.

OKAY.

YES.

OR YARDI YET QUESTIONS FOR STAFF ON THE BUDGET.

OKAY.

CAN WE, WE'RE GOING TO MOVE ON TO ITEM B NINE, WHICH IS RECOMMEND A POOL OF AUSTIN WATERS, FISCAL YEAR 2020, AND THE 2021 PROPOSED OPERATING BUDGET, CAPITAL BUDGET AND NEW APPROPRIATIONS, AND FIVE-YEAR CAPITAL IMPROVEMENT SPENDING BRENT COMMISSIONER MORIARTY.

SO I CAN ASK MY QUESTIONS.

THAT'S AS MUCH AS YOU JUST GET A REFERENCE PAGE 15, THE TEXAS WATER DEVELOPMENT BOARD SERVICE LOANS SAVINGS.

AND I USE MY CALCULATOR IS ABOUT 62%.

WOULD YOU AGREE WITH THAT? UH, I THINK I DID THAT MATH EARLIER TODAY.

THE SAME NUMBER.

OKAY.

WE'RE MATCHING.

AND WHAT WOULD YOU SAY THAT ALL OF THESE TRANSACTIONS WERE ALL SUBSIDIZED LOANS OR WERE THERE ANY GRANT DOLLARS INCLUDED IN ANY OF THESE TRANSACTIONS ONBOARD? SO, SO TECHNICALLY SPEAKING, TEXT-WISE GONE WITH GRANT FUNDS, BUT THEY ARE SUBSIDIZING LOANS,

[01:15:01]

PARTICULARLY FOR THE STATE REVOLVING FUND, DRINKING WATER, CLEAN WATER SPACE BUT THOSE ARE HEAVILY SUBSIDIZED.

IN FACT, OUR MOST RECENT TAKEDOWNS TAKEDOWNS WE TOOK DOWN NOVEMBER LAST YEAR, YOU KNOW, ALL, UM, PRICE WITH, UH, EITHER 0% INTEREST IS THROUGHOUT THE THREE YEAR TERM OR WITH EFFECTIVELY 0% IN THE LAST FIVE YEARS, LESS THAN A HALF PERCENT OF INTEREST.

SO, UM, BUT YES, HEAVILY SUBSIDIZED.

I GET THE, I GET THAT SUBSIDIZED LOANS, BUT THE TEXAS WATER DEVELOPMENT BOARD ALSO OFFERS WHAT'S KNOWN AS PRINCIPAL FORGIVENESS.

DO ANY OF THESE TRANSACTIONS WHERE IN OTHER WORDS, YOU DON'T PAY BACK THE MONEY.

IT'S A GRANT PER DAY.

THEY DON'T CALL IT A GRANT, THEY CALL IT PRINCIPAL FORGIVENESS.

AND I'M JUST WONDERING IF YOU EVER GET PRINCIPAL FORGIVENESS.

UM, WE, WE HAD NOT, UH, MY UNDERSTANDING IS THAT YOUR PRINCIPAL FORGIVENESS IS, UM, YOU KNOW, PREDOMINANTLY PROVIDED FOR SMALLER UTILITIES WITH FEWER RESOURCES.

UM, THAT'S ANSWERED.

SO WE SHOULD, WE SHOULD BE LOOKING AT THAT, BUT THERE IS A THING THAT THEY DO.

IT'S CALLED THE GREEN PROJECT RESERVE AND THAT'S AVAILABLE FOR THE WEALTHIEST, UH, UTILITIES AND THE MOST DISADVANTAGED.

YOU WRITE A WHOLE LOT OF NEWS AND VOTING TODAY.

ANYWAYS.

THANK YOU.

UM, THE OTHER QUESTION I HAD WAS DURING COVID, THERE WERE SOME NUMBER OF PEOPLE I MAY HAVE ASKED YOU THIS QUESTION, IF I HAVE TESTED, CAN'T REMEMBER WHAT I ASKED, BUT THERE'S SOME NUMBER OF PEOPLE IN AUSTIN THAT COULDN'T PAY THEIR WATER BILL.

IT COULDN'T PAY, LOST THEIR JOB AND STOPPED PAYING.

AND WHAT DID YOU AND HOW MANY PEOPLE WERE LIKE THAT, WOULD YOU SAY ROUGHLY? SO THE, THE LAST NUMBER THAT I SAW WERE IN EXCESS OF 30,000, 30,000 CUSTOMERS, YOU SEE A POSSIBLE WATER AND AUSTIN ENERGY PROVIDED FUNDS, UM, TO PROVIDE PAYMENT ASSISTANCE, UH, MORE THAN 30,000 TIMES.

NOW, SOME OF THOSE CUSTOMERS, UH, RECEIVE ASSISTANCE MORE THAN ONCE.

AND SO I THINK IN TERMS OF THE NUMBER OF CUSTOMERS IT'S ROUGHLY IN 17.

SO, SO DOES THAT MEAN THEY JUST MISS ONE MONTH PAYMENT, 17, OR DID WHERE THE 17,000 PEOPLE THAT WERE NOT PAYING FOR A YEAR? UH, THEY RECEIVE PAYMENT ASSISTANCE, YOU KNOW, IT'S OVER 30,000 TOTAL, SO MANY OF THEM RECEIVE PAYMENT ASSISTANCE TWICE.

UM, SO THAT WOULD BE TWO MONTHS, CORRECT.

OKAY.

AND I GUESS MY QUESTION IS, SO WHAT YOU DID PAYMENT SYSTEM IS YOU JUST WROTE IT OFF.

NO, YOU LET THEM NOT PAY.

SO THE PAYMENT ASSISTANCE PROCESS WORKS IS, YOU KNOW, AUSTIN ENERGY AND AUSTIN WATER CONTRIBUTE MONEY FOR PAYMENTS SYSTEMS. WE CONTRIBUTE THAT MONEY TO THIRD PARTY ASSISTANCE AGENCIES AND THEY ADMINISTER THE FUNDS AND THEY GIVE MONEY TO THE PEOPLE TO PAY THEIR WATER.

AND THEN THEY GET THE MONEY BACK TO US.

IT WAS FORM OF, UH, REVENUE COLLECTIONS.

AND I GUESS MY QUESTION IS, YEAH, I MAY HAVE ASKED THIS BEFORE, WAS THERE NOT FEDERAL REIMBURSEMENT OR WATER UTILITIES OR PEOPLE WHO COULDN'T PAY? SO IN OTHER WORDS, THERE WAS FEDERAL MONEY THAT SHOULD HAVE COME BACK TO YOU.

YEAH.

SO WE ARE RECEIVING FEDERAL FUNDS AND YOU GOT THAT ONE.

WELL, SO IT'S NOT COMING, IT'S NOT COMING TO AUSTIN WATER OR THE CITY OF AUSTIN TO ADMINISTER, UM, TRAVIS COUNTY, FOR EXAMPLE, WILLIAMS IN THE VERDICT COUNTY ORGANIZATIONS.

UH, THEY ALREADY HAVE THE INFRASTRUCTURE IN PLACE TO PROVIDE PAYMENT SYSTEMS TO, UM, TO OUR CUSTOMERS.

SO, UH, THE FEDERAL FUNDS WERE ADMINISTERED TO THE STATE, ASKED DOWN THROUGH THESE ORGANIZATIONS AND WHEN YOUR CUSTOMERS, UH, HAVE TROUBLE PAYING THEIR BILL, THEY CAN APPLY THOSE AGENCIES FOR THOSE FUNDS THAT THEY PAY US WITH BILLS.

AND THOSE FUNDS ARE COMMON COMBINATION OF ASSISTANCE, RENT, RENTAL ASSISTANCE, UTILITY ASSISTANCE.

AND WE ARE AWARE THAT WE ARE GETTING, WE ARE GETTING PAYMENTS FROM CUSTOMERS, UH, THROUGH.

SO I GUESS I'M KIND OF LOSING YOU CAUSE THIS IS KIND OF PROBABLY TOO, TOO COMPLICATED FOR ME, BUT MY NOTION AND MY QUESTION WAS THE MONEY THAT YOU ARE GAY,

[01:20:01]

HELPED PAY OR WHATEVER, DID YOU GET IT BACK BECAUSE HE DOESN'T FORGIVE.

UM, YOU HAVE ANY, ANY ACCOUNT BALANCES, UM, YOU KNOW, CUSTOMER MIGHT NOT PAY, IT MIGHT MOVE OUT OF A SERVICE TERRITORY.

UH, BUT IF THEY EVER MOVED BACK, WE HAVE A RECORD OF THAT.

SO WE DON'T FORGET.

SO MY QUESTION REALLY IS INAPPROPRIATE.

I'M NOT GOING TO KEEP YOU GOING SO I I'LL, I'LL LET IT GO.

I'M SORRY.

COMMISSIONER, THAT AMIA QUESTIONS.

WHAT A STEP BACK.

WELL, UM, THE, THE PUBLIC WORKS ACTIVITIES THAT WE ARE TAKING ON PIPELINES INFRASTRUCTURE STRATEGY AND PERFORMANCE.

SO, SO THOSE POSITIONS THERE, THERE'S WORKING POSITIONS FIVE AND OVER, UM, POSSIBLE WATER TREATMENT, OPERATIONAL MAINTENANCE, TECH, SENIORS, UM, NEW BUSINESS PROCESS SPECIALIST SO IT'S ANOTHER THINGS TO SUPPORT, UM, YOU KNOW, OUR CAPITAL PROJECT, UH, FUNCTION OR PROJECT MANAGEMENT ENVISION THAT THEY COULD TAKE THE FIVE POSITIONS OR RELATED TO, UH, THROUGH OUR STREET CUT PROGRAM.

UH, WE'RE TRYING TO BRING SOME OF THOSE SERVICES.

IN-HOUSE PUBLIC WORKS, POLICING THEIR BUDGET.

WELL WE'RE IN TERMS OF THE STREET CUT PROGRAM, REDUCING THE FUNDING THAT WE'RE PAYING TO PUBLIC WORKS WITH THEM TO ADMINISTER THE PROGRAM WITH PLANS TO FULLY TRANSITION WAY FROM UTILIZING PUBLIC BOARDS AND BUILDING OUR OWN TEAMS IN-HOUSE TO DO THAT WORK.

I WOULDN'T SAY BULLYING TRANSITIONING.

WE ALWAYS RECEIVE PUBLIC WORKS, WORK PARTNER IN THE CUT RESTORATIONS, BUT WE DO A LOT OF CUTS AND THEN WE MAINTAIN A LARGE BACKLOG.

SO WE'RE LOOKING TO KIND OF ADD A, KIND OF A MIXTURE OF RESOURCES TO REDUCE AND KEEP THE BACKLOG LOW IN THEIR CONDITIONER.

IN THIS CASE, WE'RE REALLY TARGETING, UH, CONCRETE WORK, UH, IS AN AREA THAT WE THINK WE COULD REALLY STEP IN ENHANCE THE RESTORATION SERVICE LEVELS.

IN ADDITION, YOU KNOW, WE DO, AND WE HAVE A GROWING PART OF OUR SYSTEM THAT IS OUTSIDE OF THE CITY LIMITS AND IN TRAVIS COUNTY.

AND AGAIN, THAT'S AN AREA WHERE WE'VE FALLEN BEHIND ON SOME CUT AND, AND WOULD LIKE TO CATCH SOME CULTURAL RESOURCES THAT WE COULD, THAT WE COULD ATTEMPT TO THOSE CUTS.

ANY OTHER QUESTIONS, COMMISSIONER? I NEVER WANT TO COMMENT.

THIS IS A INCREASE OF 60 TO FOUR TIMES ON AN EMPLOYEE.

I THINK IN THE PAST, HOW MANY YEARS I HAVE BEEN SERVING JUST COMMISSIONED.

I THINK IT'S THE HIGHEST INCREASE IN STUFF.

YOU KNOW, IN THE PAST IT HAD BEEN SAYING, WELL, WE TRIED TO, UH, COMPUTERIZED AUTOMATION SO WE CAN KEEP OUR VACANCY RATE HIGH.

SO WHEN WOULD THAT REDUCE OUR PAIN? UH, PEDRO, YOU KNOW, THAT'S, THAT'S NOT WHEN THE WINDOW WINDOW, WHAT ARE YOU TDD TALKING ABOUT? WELL, WE NEED TO SPEND MONEY ON A COMPUTER ON THE HARDWARE WE SAY, HEY, THAT WAS SAFE TO PEDRO.

AND NOW TURN AROUND.

THEN THE NEXT YEAR WE SAY, WELL, WE NEED MORE MANPOWER TO DO THE JOB.

YOU KNOW, I SAW TO THAT GUY, WE GOT TO THE SMART, UH, WHAT A METER.

WE DON'T HAVE NEEDED SO MANY PEOPLE, BUT ACTUALLY, YOU KNOW, WE ARE INCREASING.

THE PEOPLE ARE THE ONLY THING I CAN SEE IS LIKE, IF WE DO THE CONTRACT, IS THERE A HAVE A CONTRACT SECURITY IN OUR SERVICES? YOU KNOW, WE DO THE IN-HOUSE, THAT'S AN ACHIEVEMENT INCREASE.

BUT BEYOND THAT, YOU KNOW, I, I THINK THAT WE NEED TO BE, TO BE REASONABLE AND EAT, YOU KNOW, ONE YEAR SAY, HEY, I NEED A MORE MONEY TO BUY HOW THE WAY THROUGH TO SOFTWARE SO I CAN DO AUTOMATION.

AND NEXT YEAR YOU COME BACK, YOU DON'T SAY ANYTHING ABOUT HOW OTHER WAY OF STUFF IS.

I NEED MORE PEOPLE.

I SAY, WE CANNOT EXPAND TO THAT BECAUSE THIS IS ABOUT IF I'M NOT WRONG, ABOUT 3.5% OF THE FET, MAYBE 3%, RIGHT? YES.

SO I JUST NEED TO FOLLOW UP.

I THINK YOU'RE, YOU'RE, YOU'RE EXACTLY RIGHT.

THIS IS A LARGE STAFFING TASKFORCE.

TRADITIONALLY,

[01:25:01]

HISTORICALLY WE TRY TO KEEP OUR STAFFING GROWTH IN WANDER ONE AND A HALF PERCENT LATE YEAR.

ASHLEY COULD ASK THEM OUR CUSTOMERS, BUT, UH, BUT THERE'S SOME, I THINK COMPOUNDING FACTORS THAT KIND OF FLUIDS ISSUES WITH THIS BUDGET.

UM, ONE, UM, LAST YEAR'S BUDGET DURING COVID WE CUT SEVERAL POSITIONS JUST TO BE A LITTLE CAUTIOUS WITH COVID.

AND SO WE'RE, WE'RE ADDING A FEW OF THOSE BACK IN TO THIS, BUT ALSO WE'RE EXPANDING OUR REACH.

UH, THE, UH, WATER-COOLER PROGRAM IS, UH, IS DRIVING A LOT OF NEW INITIATIVES ACROSS THE UTILITY AND WE NEED STAFF TO ATTEND TO THOSE, UH, STRATEGIC NEEDS AND, YOU KNOW, COUNCIL DIRECTION, YOU KNOW, YOUR COMMENT ABOUT, ABOUT, UM, THE, UH, THE AMI.

UM, WE WILL ULTIMATELY REDUCE, UH, STAFF THROUGH CONTRACTED SERVICES ON AMI RIGHT NOW.

ALL OF OUR METER READING IS CONTRACTED OUT AND AS WE IMPLEMENT MORE AND MORE AMI, YOU'LL SEE THAT THAT ALLOCATION FOR YOU TO READING IN OUR, OUR ADL ALLOCATION WILL ALL BE LEGAL DOWN, BUT WE'RE KIND OF IN THIS TRANSITION PHASE WHERE THAT, UH, CLEARLY, UM, OUR SYSTEM IS GROWING.

I THINK, UH, THE CHAIR OF THE BUDGET COMMITTEE INDICATED WE ARE GROWING OUR CUSTOMER BASE AND, YOU KNOW, WE HAVE MORE MILES OF PIPE IN A YEAR, YOU KNOW, PARTICULARLY LIVE STATIONS AND PUMP STATIONS AND TANKS FACILITIES ARE GROWING VERY RAPIDLY.

AND SO WE'RE TRYING TO KEEP UP WITH THAT.

I THINK ALSO I WOULD ADD A, WE PUSHED ON SOME RESILIENCY POSITIONS THAT THINK WILL STRENGTHEN OUR ABILITY TO RESPOND AND PREPARE FOR EMERGENCIES.

WE'VE ADDED OPERATIONAL STAFF, ADDITIONAL ELECTRICIANS, ADDITIONAL EMERGENCY MANAGEMENT PLAN.

WE STAFF, UM, UH, CYBERSECURITY WE'RE SIGNIFICANTLY EXPANDING OUR DATA STAFF TO MANAGE OUR TECHNOLOGY AND REDUCE CYBER WIZ.

SO COMMISSIONER, YOUR POINT IS CORRECT.

THIS IS A LARGE HAVING, THAT'S PROBABLY THE LARGEST THAT I'VE MADE SINCE I'VE BEEN DIRECTOR.

UH, YOU KNOW, WE DON'T DO THAT WITHOUT A LOT OF THOUGHT.

AND LET ME SAY TOO, THIS IS NOT A PATTERN WE'RE GOING TO BE IN WHERE EVERY YEAR WE'RE GOING TO ASK FOR 60 STAFF.

AND THIS IS UNUSUAL HERE IN THAT RESPECT.

THANK YOU.

ANY QUESTIONS FOR THE STAFF? HOW MANY, DO YOU KNOW HOW MANY VACANT FULL-TIME POSITIONS YOU CURRENTLY HAVE? YES.

WELL, WE CURRENTLY HAVE ABOUT 80 POSITIONS VACANT, ROUGHLY ABOUT 7%, UM, WHICH IS ONE OF THE LOWEST IN THE CITY.

UH, WE HAVE BEEN AS LOW AS 5%, BUT IT'S, UH, IT'S DIFFICULT TO HIRE NOW.

THERE'S, UH, KNOW WE FEEL PRETTY GOOD ABOUT WHERE WE ARE WITH THAT HOT ALREADY.

AND, UH, WE'RE TAKING STEPS TO CONTINUE TO STRENGTHEN OUR ABILITY TO RECRUIT AND RETAIN EMPLOYEES.

WE'RE DOING A MARKET STUDY RIGHT NOW, JUST OFF THE WATER TO STRENGTHEN SOME OF OUR ABILITIES, IMPROVE MORALE AND THE TEAM.

UM, UH, SO I THINK WE'RE IN GOOD SHAPE THERE.

WE'RE FULL CONFIDENT.

WE'LL BE ABLE TO HIRE THESE EMPLOYEES NEXT YEAR AND MAINTAIN YOUR FIVE TO 7%.

ANY OTHER QUESTIONS? NOT ALL IN THE 10 MOTION MOTION MADE BY COMMISSIONER WHAT'S.

THE MOTION FOR MOTION IS FOUR APPROVED THE BUDGET NINE THAT'S INCONSEQUENTIAL.

SECOND, SIX SECOND BY COMMISSIONER.

CHERYL, WHAT WOULD YOU FAVOR? PLEASE RAISE YOUR HAND AND SHOW HIM APPROVE AN EMISSARY.

THANK YOU VERY MUCH.

LET'S MOVE ON TO ITEM SHE ONE UPDATE FROM WINTER STORM WALKING GROUP, SINCE THE CHAIR OF THE WORKING GROUP, UH, COMMISSIONER CASSELBERRY IS NOT HERE.

SO WE KINDLY ASK, UH, COMMISSIONER MORIARTY TO GIVE US AN UPDATE.

THANK YOU, CHEERLEAD.

UH, I'M SORRY.

YOU'RE SORRY THAT, UH, VICE CHAIR OF THE WATER WASTEWATER COMMISSIONER AND CHAIR OF THE WORKING GROUP IS NOW HERE, PLEASE GIVE THE REPORT.

WE MET ON JULY 12TH, THE CALENDAR, AND WE HAVE BEEN HAVING A SERIES OF MEETINGS.

UM, AND ACTUALLY THE LAST TWO OR THREE, WE HAVE LIKE REAL LIVE MEETINGS FOR A LOT OF US.

THIS WAS KIND OF UNUSABLE.

WINTER STORM GROUP HAS BEEN COMING HERE FOR A COUPLE OF MONTHS.

UM, WE'VE HEARD A LOT OF, UH, INFORMATION FROM DIFFERENT GROUPS IN THE CITY WATER DEPARTMENT

[01:30:01]

WHO HAVE DEALT WITH THIS PROBLEM, UH, COVERED COMMUNICATIONS AND VARIOUS OPERATIONS ASPECTS.

UH, WE'RE NOT JUST HEARING FROM THE TOP MANAGERS, BUT THEY BRING IN SOME OF THE, UH, UH, STAFF THAT ARE DIRECTLY INVOLVED WITH A LOT OF THE HANDS-ON THINGS, WHICH IS GOOD.

SO WE, WE HAVE AN OPPORTUNITY TO ASK A LOT OF QUESTIONS AND MAYBE MAKE SOME SUGGESTIONS.

AND I EXPECT, AND I DON'T KNOW THAT WE HAVE A FIRM DEADLINE ON OUR WORKS, BUT I BELIEVE WE WILL HAVE TWO OR THREE MORE MEETINGS.

AND I THINK THAT WILL BE FUNNELED INTO THE WATER DEPARTMENTS AFTER AN ACTION REPORT.

UM, WHAT WE'RE DOING.

I KNOW ONE ISSUE THAT WE DISCUSSED AND I'M TALKING ABOUT THESE, UH, SERVICE CONTRACTS THAT, UH, AT LEAST I THOUGHT, I THINK THAT THE CITY NEEDS MORE OF THESE, WHAT THESE EMERGENCIES STRIKE, THAT THEY'RE, THEY'RE SO BUSY WITH SO MANY THINGS THAT, UH, WE CAN WORK CONTRACTORS THAT THEY HIRED TO DO SERIOUS REPAIRS AND STUFF.

SO, UH, I THINK, UH, CHAIR CASTLEBERRY HAS DONE A SPLENDID JOB OF COMMUNICATING BACK AND FORTH AND, UH, SHE'S, UH, SHE'S GOT SOME VERY STRONG OPINIONS BASED ON HER BACKGROUND, WHICH I THINK YOU'RE VERY, UH, VERY GOOD AND LOOKING FORWARD TO THE CONTINUATION OF OUR WINTER STORM QUESTIONS.

WHAT ARE WE PUTTING ANY QUESTIONS? THANK YOU.

THANKS FOR YOUR TIME.

OKAY.

LET'S MOVE ON TO ITEM F ONE FUTURE AGENDA ITEMS. UH, WE, I KNOW THAT, UH, COMMISSION, THE MORNING YAKI MENTIONED ABOUT WATER LOSS AND THE MEDIA MITIGATION EFFORTS.

WE SOME TIME DOWN THE ROAD.

IS THERE ANY, THANK YOU.

AND IS THERE ANY OTHER ITEMS THAT COMMISSIONER STACK TO BE, UH, ITEMS TO BE CONSIDERED FOR THE REPORT AGENDA? WHAT IS THE NEXT DAY ALLY UPDATE? IS THAT NEXT QUARTERLY? YEAH.

I'M NOT SURE IT MIGHT BE AT THE NEXT ONE.

OKAY.

YEAH.

I'D LIKE TO JUST HEAR HOW WE'RE DOING ALL THAT.

OKAY.

ANY OTHER ITEMS OF COMMISSION THAT I COULD DO? CAUSE TO BE CONSIDERED WHAT YOU WILL, ANYTIME YOU'VE GOT TO WANT SOMETHING TO BE THE AGENDA THREES, A FLYING A CO-SPONSOR OF THE ITEM AND WE'LL PUT IT ON THE AGENDA.

OKAY.

AND ANY OTHER HOUSEKEEPING ITEMS JIRA? YES.

UM, I THINK, UH, YOU KNOW, OUR NEXT MEETING IS PROBABLY GOING TO BE AT A DIFFERENT LOCATION.

DO WE KNOW WHAT OUR MISSION HERE IS? YOU'RE STILL GOING TO BE HERE.

OKAY.

NEVERMIND.

CAN YOU TELL US THE DATES? THE NEXT MEETING WILL BE SEPTEMBER 1ST.

YES, SIR.

SEPTEMBER 1ST.

FIRST, YES.

WEDNESDAY, SEPTEMBER 1ST.

THAT'S UP TO DATE.

YES.

ON THE APPROVED AGENDA.

OKAY.

LABOR DAY.

I WANT TO VERIFY WE HAVE A FORM FOR THAT.

YES.

I WILL REACH OUT TO EVERYONE BECAUSE I KNOW I WON'T BE HERE.

SO THAT IS NOT A LABOR DAY AND LABOR DAY.

BELIEVE IT AND THERE PROBABLY WON'T BE AN ISSUE TO GIVE US THE SAME.

OKAY.

ANY OTHER ITEMS? QUESTIONS? IF NOT, THE MEDIA IS ADJOURNED.

IT'S 7 35.

THANK YOU.