Nov 03, 2021 Water and Wastewater Commission

[00:00:03]

NOW WE WERE START WATER IN A WASTEWATER GREGOR MEETING AND IT WAS SHOWING COMMISSIONER MONYETTE HE PAN CASSELBERRY LEE AND FISHER UPENN.

UH, WHILE WE'RE WAITING FOR OTHER COMMISSIONERS TO SHOW UP, LET'S MOVE AROUND.

UM, THE AGENDA ITEMS FIRST

[C1. Approval of 2022 Water and Wastewater Commission Meeting Schedule]

SHE WON APPROVAL OF 20, 22 WATER IN WASTEWATER COMMISSION MEETING SCHEDULE, AND I BELIEVE COMMISSIONERS A SCHEDULE IN YOUR PACKET.

AND FOR THE NEXT YEAR WE ARE MOVING THROUGH THE SECOND WEDNESDAY EVENING FOR THE MEETING, EXCEPT THAT ASKED THE MEETING IN DECEMBER IS THE FIRST WEDNESDAY.

AND THEN THERE IS AN OPTIONAL MEETING ON AUGUST 17TH THROUGH 19TH FOR THE BUDGET ADOPTION MEETING.

SO THAT'S THE 10 PAY TIP NEXT YEAR SCHEDULE.

AND IF THERE'S NO OTHER QUESTIONS, WE'LL ENTERTAIN FOR A TOP TEAM, THE SCHEDULE SARAH CANNON, UM, HAVE YOU RECOGNIZED COMMISSIONER COMMISSIONER ATTENDED AND WE ARE DISCUSSING ITEMS C1 FOR THE NEXT YEAR'S SCHEDULE AND THE MOTION MADE BY VICE CHAIR CASTLEBERRY.

AND IS THERE A SECOND, SECOND BAND BY COMMISSIONER TAR AND ALL IN FAVOR, PLEASE RAISE YOUR HAND SHOWING APPROVAL AND EMISSARY.

THANK YOU VERY MUCH.

LET'S MOVE TO ITEM SHEET TO

[C2. Appointment to Joint Sustainability Committee]

AND LAST MONTH WE DISCUSS ABOUT THAT AND, UH, THANK YOU FOR COMMISSIONER WILLIAMS. SHE IS NOT HERE TONIGHT, BUT SHE BOUGHT IN TEA TO SERVE ON ANOTHER COMMITTEE.

AND MS. POLANCO WILL COORDINATE WITH THE CITY TO, UH, PHOTO CODE IT, HOLD, UH, UH, ARRANGEMENT.

THANK YOU VERY MUCH.

UH, NOW LET'S MOVE TO

[A. APPROVAL OF MINUTES]

IS THERE A MOTION FOR APPROVAL MOTION MOTION MADE BY COMMISSIONER AND TAKE HIM, TAKE HIM TO MIAMI.

UH, OH, IN FAVOR, PLEASE RAISE YOUR HANDS.

SHOWING THE POOP AND ADVERSITIES.

THANK YOU VERY MUCH.

OKAY.

LET'S MOVE TO ITEM B

[B. ITEMS FOR COMMISSION’S REVIEW AND RECOMMENDATION FOR APPROVAL TO CITY COUNCIL]

ANY QUESTIONS OR Q SOWS.

AND IF YOU'VE GOT RECUSAL, PLEASE STATE THE REASON WHY YOU ARE ACCUSING IT.

COMMISSIONER MORIARTY.

I HAVE NO RECUSALS.

I HAVE QUESTIONS ON ITEM B TWO, QUESTION NUMBER FIVE.

ITEM B TWO.

THANK YOU.

COMMISSIONER PAN.

OH, THE WHITES UP HERE ON THE, GOT IT.

UM, THANK YOU.

NO QUESTIONS.

I DO HAVE RECUSALS ON ITEMS. B FIVE, B SIX, B SEVEN B EIGHT.

MY S MY COMPANY IS A SUB-CONSULTANT ON THOSE PROJECTS.

THANK YOU.

VICE CHAIR UP MY CHAIR, CASTLEBERRY.

NO RECUSALS.

AND JUST A QUESTION ON ITEM 11.

OKAY.

AND I DON'T, I DON'T HAVE ANY RECUSED.

SO I'VE GOT A QUESTION ON ITEM B, ONE COMMISSIONER CAR.

NO QUESTIONS.

NO RECUSALS.

THANK YOU, COMMISSIONER.

NO QUESTIONS.

NEVER US.

COMMISSIONER FISHER.

NO QUESTIONS.

NO RECUSALS.

OKAY.

SO THE CONSENT ITEMS ARE FOUR, NINE

[00:05:01]

YOU MADE REPEATED 3, 4, 9, AND 10.

AM I CORRECT? OKAY.

IS THERE A MOTION TO APPROVE IT? MOVE APPROVAL MOTION MADE BY COMMISSIONER MORIARTY AND THE SECOND BY VICE CHAIR CASTLE.

ALL IN FAVOR, PLEASE HAND.

OKAY.

APPROVE AN EMISSARY.

THANK YOU.

UM, LET'S MOVE TO ITEM B

[B1. Recommend approval to award two contracts with Earthco Landscape Construction, LLC (MBE) and Unity Contractor Services, Inc. (MBE), to provide boundary vegetation treatment for wildfire mitigation, each for a term of five years for total contract amounts not to exceed $3,902,000, divided between the contractors.]

THEN THE FOLLOW UP IS ANY CITY POPLINS IN TRAVELERS, HAYES AND WILLIAMSON COUNTY.

ARE WE TAKING CARE OF THE PARK RAINS WITH THE WATER? WHAT ARE YOU TD THIS BUDGET? I THINK I NEED TO STAFF HER TO PLEASE COME UP AND ADDRESS THAT QUESTION.

SHERRI, PRESS THE BUTTON.

YOU'RE GOOD.

SHERRY KUHN, THE ENVIRONMENTAL RESOURCE OFFICER FOR AUSTIN WATER.

I DIDN'T HEAR THE QUESTION.

I'M SORRY.

MY QUESTION IS THE PARK LANDS.

UH, WILDFIRE MITIGATION SHOULD COME FROM THE PARK PARK BUDGET, NOT FROM THE AUSTIN WATER UTILITY, BECAUSE THAT'S NOT A FAIR TODAY.

WAGE PAYERS.

AND I NEED EO TO HELP ME CLARIFY THAT EXPENSE SUMMIT.

YEAH, THAT'S CORRECT.

THE WORK THAT WILL BE DONE ON PARKLAND WILL COME OUT OF THE PARKS BUDGET OR THE AUSTIN FIRE DEPARTMENT BUDGET, NOT FROM AUSTIN WATER BUDGET.

OKAY.

ALL RIGHT.

THANK YOU, SIR.

NO MORE CUSHION.

OKAY.

OKAY.

AND I'LL MAKE, I'LL MAKE A MOTION TO APPROVE ITEM B ONE.

IS THERE A SECOND SECOND MADE BY COMMISSIONER? ALL IN FAVOR, PLEASE RAISE YOUR HAND SHOWING A POOP ANIMOSITY.

THANK YOU.

LET'S MOVE TO ITEM

[B2. Recommend approval to negotiate and execute a multi-term contract with Xylem Water Solutions USA, Inc., to provide replacement pumps, parts, and service of Flygt pumps, for up to five years for a total contract amount not to exceed $1,614,700.]

UM, I UNDERSTAND THAT FOR THIS PARTICULAR, UH, REPLACEMENT, UH, PARTS, THERE WAS ONLY ONE FIRM THAT COULD PROVIDE US PRICING.

IS THAT TRUE? UH, RICK CORNETTO ASSISTANT DIRECTOR FOR OPERATIONS, IF, UH, THE, UH, PARTS THAT WE'RE TALKING ABOUT, OUR FLIGHT PUMPS AND THEY'RE ALL THEIR ASSAULTS, HORSE, THEY ARE PROVIDED BY XYLEM THEY'RE THE SOLE PROVIDER FOR THOSE PARTS.

UH, I EXPECTED YOU TO SAY THAT.

AND I GUESS MY QUESTION IS HOW DO YOU MAKE SURE THAT THE CITY IS NOT TAKEN ADVANTAGE BY THIS COMPANY THAT HAS A SOLE SOURCE FOR THESE REPLACEMENT PARTS? WELL, LET ME CLARIFY YOUR QUESTION.

UM, HOW IS IT THAT WE'RE ENSURING THAT THE, UH, UH, THE RATES IN WHICH, UM, ARE ACCEPTABLE FOR THESE PARTS ARE, UH, IN LINE WITH MARKET PRICING? UH, WE DO GO THROUGH ANALYSIS OF THAT AND WE DO HAVE SOMEONE FROM FINANCE I CAN ALSO, OR OUR FINANCE GROUP THAT CAN ALSO, UH, UH, TALK TO US ABOUT THAT.

BUT, UH, WE DO GO THROUGH A VETTING PROCESS TO ENSURE THAT IF, ESPECIALLY, IF THEY'RE INCREASING OVER TIME, THAT THEY'RE WITHIN THE MARKET, UH, ANALYSIS, THIS ACTUALLY IS A NEW CONTRACT.

SO WE DON'T HAVE A COMPARISON OF THIS IS, UH, AN EXISTING, NOT, NOT AN, A, AN EXISTING CONTRACT.

SO IT IS A NEW CONTRACT.

UH, 40% OF OUR, UH, INVENTORY IS THROUGH FLIGHT.

AND SO THIS IS KIND OF A, AN EFFICIENCY CONTRACT TO ENSURE THAT, UH, WE DON'T HAVE ONE OFF PURCHASES OVER TIME.

OKAY.

SO LET ME DIGEST WHAT YOU JUST SAID.

UH, YOU HAVE AN ANALYTICAL PROCESS WHERE YOU, EVEN THOUGH IT MAY NOT BE, YOU DON'T HAVE A COMPARABLE ON A FLIGHT WHOMP OR PART, YOU CAN COMPARE IT TO OTHER PUMPS

[00:10:01]

IT'S MY UNDERSTANDING THAT RIGHT.

WE HAVE ABOUT, UM, JUST TO CLARIFY, WE DO HAVE SEVERAL VENDORS, UH, THERE'S A TOTAL OF FOUR VENDORS THAT WE USE, UH, UH, ANYTHING FROM FLOSSER, UH, MORRISON, UH, FLIGHT AND ANOTHER VENDOR THAT, UH, IS OUR INVENTORY.

SO WE HAVE A BASIS OR COMPARISON KSPS AND OTHER ONE THEY'RE ALL SOURCE SOLE SOURCE.

SO THAT IS SOME, UH, AREAS THAT WE CAN ALSO DRY DIVE INTO FOR PART OUR PRICE COMPARISONS.

AND THAT'S EXACTLY WHAT YOU DO.

WE CAN, YES.

WELL, COMMISSIONER MORIARTY THAT IF YOU, ON THE RCA, THE BOTTOM HAS A SMALL PRICE ANALYSIS NARRATIVE, AND THE NARRATIVE COMMUNICATES THAT THIS PRICING IS A 1.2, 1% DECREASE.

SO, UH, I THINK THERE MUST'VE BEEN SOME LEVEL OF ANALYSIS THAT CAME UP THAT THIS PRICING COMPARED TO WHAT WERE THE WAY WE WOULD BUY THEM BEFORE WAS ABOUT WHERE WE WERE OR SLIGHTLY LESS.

UM, THAT'S, THAT'S HOW I READ THAT, JONATHAN, I DON'T KNOW IF YOU HAVE ANY MORE DETAIL THAT YOU CAN PROVIDE ON THE COST ANALYSIS.

UH, JONATHAN DASH, LLC, BOSTON PERKS YOU ON THIS.

I'M SORRY.

SO YOU ALSO WATER PURCHASING OFFICE.

THERE YOU GO.

PERFECT.

ALL RIGHT, JONATHAN NOW SHALL SEE OUR AWESOME WATER, UH, PROCUREMENT PURCHASING OFFICE SUPPLY CHAIN OFFICE.

UM, YES, SIR.

WE ACTUALLY DO LOOK AT PRICE COMPARISONS, THE, UM, THROUGHOUT CO-OPS AND ALL, ALL DIFFERENT METHODS.

THIS PARTICULAR, UH, UH, AS PREVIOUS STATED, THIS PARTICULAR VENDOR IS SOLE SOURCE.

AND SO WE BASICALLY LOOK AT THEIR, THEIR, UH, PRICE SHEETS, COMPARE THEM TO OTHER VENDORS THAT WE ACTUALLY USE AND THEN SOURCE FROM THERE.

BUT BECAUSE IT'S A SOLE SOURCE, WE HAVE ONE OPTION TO BUY THE PARTS FROM.

I UNDERSTAND.

UM, SO THE 1.2% DECREASE, PLEASE ENLIGHTEN ME HOW THAT WORKED.

OKAY.

SO WHAT WE DO IN THAT SITUATION IS WE GO OUT TO PULL THE, UM, BUREAU OF LABOR MANAGEMENT BEFORE I, THIS IS A NEW CONTRACT, SO WE CAN'T COMPARE IT TO AN OLD CONTRACT.

WE'RE NOT COMPARING, WE CAN COMPARE IT TO SELL 1.2% DECREASE AGAINST WHAT IS WHERE I'M GOING.

SO WE'RE LOOKING AT THE BUREAU OF LABORS, UH, LABOR MANAGEMENT STATISTICS.

UM, SO IT'S BASICALLY A GENERAL WEBSITE THAT GOES OUT AND TRACKS THE, UH, THE INCREASES IN PRODUCTS AND OTHER ITEMS THROUGHOUT THE WHOLE COUNTRY THAT WE CAN NARROW IT DOWN TO STATES AND CITIES.

AND AUSTIN IS A BIG ENOUGH CITY WHERE WE CAN ACTUALLY LOOK AT SOME OF THE TRENDS THERE, UM, AS WELL AS, UM, WE ALSO HAVE PAST HISTORY WHERE WE SPOT, SPOT, PURCHASE THESE ITEMS. AND THEN, SO WE CAN COMPARE BASED OFF THE PAST 2% DECREASE IS BASED ON THE BUREAU OF LABOR STATISTICS.

AND I'M NOT SURE FOR LIKE, ITEMS. OKAY.

I THINK I'M GOING TO SAY I'M GOOD.

OKAY.

SO THANK YOU FOR THAT EXPLANATION AND I'M READY TO VOTE UNLESS YOU ALL HAVE OTHER QUESTIONS.

I'LL MOVE APPROVAL.

MOTION MADE BY COMMISSIONER MORIARTY SAID, IS THERE A SECOND SECOND MADE BY COMMISSION CASTLEBERRY ALL IN FAVOR, PLEASE RAISE YOUR HAND AND SHOW HIM APPROVE AND I'M CITY.

THANK YOU.

THANKS.

LET'S MOVE TO ITEM B

[B5. Recommend approval to award and execute a construction contract with Facilities Rehabilitation, Inc., for the Fort Upper Basin Water and Wastewater Pipeline Renewal project in the amount of $2,484,870 plus a $248,487 contingency, for a total contract amount not to exceed $2,733,357.]

SHE DID THESE, WE HIPPIE DICTATION INC FOR THE FOURTH UPPER BASIN WATER IN A WASTEWATER PIPELINE RENEWAL PROJECT IN AMOUNT OF $2,484,870 PER US A 248,487 CONTINGENCY FOR A TOTAL CONTRACT AMOUNT, NOT TO EXCEED $2,733,357 AND JESUS IN HISTORY ONE, AND I BELIEVE COMMISSIONER PENN NEED TO BE QC IT.

IS THERE ANY QUESTIONS ON THIS ITEM, IF NOT WAR IN THE TENT AND EMOTION? I JUST MAKE ONE COMMENT.

YES, SIR.

THAT IN RESPONSE TO YOUR REQUEST OF A COUPLE OF MEETINGS AGO, I PERSONALLY, THE FACT THAT THE WATER DEPARTMENT IS GIVING US THE BID TABULATIONS FOR THESE THINGS, IT HELPS MAKE OUR JOB A LOT EASIER.

AND I APPRECIATE THAT.

[00:15:03]

I WILL ENTERTAIN A MOTION MOTION MADE BY COMMISSIONER CASTLEBERRY AND SECOND BY COMMISSIONER CARR, ALL IN FAVOR, PLEASE RAISE YOUR HAND SHOW IN MORIARTY, CASTLEBERRY, THE ATAR TO THE ETA AND OFFICIAL APPROVE AND THE, UH, COMMISSIONER PAN RECUSED ON IT.

THANK YOU.

LET'S MOVE TO ITEM B

[B6. Recommend approval to award and execute a construction contract with Austin Underground, Inc., for South Austin Regional WWTP Sludge Transfer Line and Reclaimed Water Line project in the amount of $5,751,536 plus a $575,153.60 contingency, for a total contract amount not to exceed $6,326,689.60.]

AND THIS IS IN DISTRICT NUMBER THREE, AND I BELIEVE COMMISSIONER PAN IS RECUSING ON IT.

UH, COMMISSIONER SCOTT, ANY QUESTIONS FOR STUFF? IF NOT, WE WILL IN THE 10, UH, MOTION MOTION MADE BY COMMISSIONER MORIARTY.

AND SECOND BY COMMISSIONER, ALL IN FAVOR.

PLEASE RAISE YOUR HANDS.

SHOWING MORIARTY CASTLEBERRY .

AND IF WE SURE MOVE FOR APPROVAL AND THE COMMISSIONER PEN, WE CUE SUNG IT.

LET'S MOVE TO ITEM B

[B7. Recommend approval to negotiate and execute an amendment to the professional services agreement with Harutunian Engineering, Inc. for the Walnut Creek Wastewater Treatment Plant Controls and Network Upgrades project in an amount not to exceed $4,520,127.95.]

AND THIS IS IN DISTRICT NUMBER ONE, I BELIEVE COMMISSIONER PENN GOT TO RECUSE ON IT.

AND THEN COMMISSIONER GOT ANY QUESTIONS ON THIS ITEM.

IF NOT, WE'RE IN THE 10 MOTION MOTION MADE BY COMMISSIONER MONIQUE LT AND SECOND BY VICE CHAIR, CASTLEBERRY ALL IN FAVOR.

PLEASE RAISE YOUR HAND.

SHOWING MORIARTY CASTLEBERRY POWER TO THE EDITOR AND FISHER AND COMMISSIONER PEN RECUSED ON IT.

LET'S MOVE ON TO ITEM

[B8. Recommend approval to award and execute a construction contract with Control Panels USA Inc., for the Walnut Creek Wastewater Treatment Plant Controls and Network project in the amount of $5,987,000 plus a $598,700 contingency, for a total contract amount not to exceed $6,585,700.]

WE COMMAND A POOR APPROVAL TO AWARD AND EXECUTE A CONTRACTION COUNTRY WITH CONTROL PANELS, USA, INC FOR THE ONE QUICK WASTEWATER TREATMENT PRINTS, CONTROLS AND NETWORK PROJECT IN AMOUNT OF 5 MILLION, $987,000 FOR US A $598,700 CONTINGENCY FOR A TOTAL COUNTRY AMOUNT, NOT TO EXCEED $6,585,700 AND JESUS IN DISTRICT NUMBER ONE AND BELIEVE, UH, COMMISSIONER PEN THAT IT WILL BE QC.

UH, COMMISSIONER GOT ANY QUESTIONS FOR STAFF? IF NOT, WE'RE IN MOTION, MOTION MADE BY COMMISSIONER POWER.

YOU SEE A SECOND SECOND BY COMMISSIONER, MY VICE CHAIR, KESSEL PERRY, ALL IN FAVOR, PLEASE RAISE YOUR HAND SHOWING TO THE EDITOR AND OFFICIAL YES.

AND COMMISSIONER LET'S MOVE ON TO ITEM B.

IT, EVAN

[B11. Recommend approval to negotiate and execute an amendment to an interlocal agreement with the Lower Colorado River Authority concerning laboratory testing services, to increase funding under the initial contract term in an amount not to exceed $500,000 and to increase funding for an option period in an amount not to exceed $500,000. The total increase in funding will not exceed $1,000,000, and the revised total contract expenditure will not exceed $2,700,000.]

THE TOTAL INCREASE

[00:20:01]

WE NOT EXCEED $2,700,000, AND I BELIEVE THAT'S A CHAIR QUESTION.

I DO.

THANK YOU.

I AM PROBABLY SHOULD HAVE ASKED THIS IN ADVANCE, BUT I WANT TO, UM, EMPHASIZE THIS AGREEMENT WITH LCRA.

UM, THE PRICING FOR LAB SERVICES I'M GUESSING IS PROBABLY BETTER THAN THE INDUSTRY STANDARD WOULD BE GOING OUT TO OUTSIDE PRIVATE.

IS THAT CORRECT? SO JUST RECORDING SOME WATER, UM, YOU'RE REQUESTING WHETHER OR NOT PRICING FOR LCRA OR THE LAB FOR LAB SERVICES FROM LCRA, WHETHER OR NOT IT'S BETTER THAN INDUSTRY THAT I CAN'T COMPARE, BUT, UH, THERE IS, UM, A TYPICAL STANDARD, UM, PRICING THAT WE NEGOTIATE WITH THEM, UH, FOR LAB SERVICES THAT WE CAN'T HANDLE INTERNALLY.

UH, SO THAT HAS BEEN ESTABLISHED AND, UM, BACK IN 2018, WE'RE NOT CHANGING THAT PRICING OTHER THAN, UH, UH, EXTENDING THE, UH, AUTHORIZATION.

AND THIS IS MOSTLY WITH, FOR THE ALGEBRA ALGAL BLOOMS AND SUCH THAT WE'RE DEALING WITH.

THAT'S WHAT THEY SAID, THE HARMFUL ALGAL BLOOMS, AS WELL AS THE, UH, PFA W YEAH.

W WE WILL CONTINUE TO USE THE LAB FOR, UH, SERVICES SUCH AS THAT, BUT WE HAVE A MULTITUDE OF TESTS THAT WE RUN WITH LCRA.

SO IT COULD BE ANYTHING FROM LEAD AND COPPER TYPE, UH, TEST EXAMINATIONS, UH, SLUDGE SAMPLING.

SO IT'S, THERE'S A MULTITUDE OF OTHER SAMPLES OR TESTS THAT THEY WOULD RUN.

IF, SAY OUR INSTRUMENTS WERE DOWN, THEY WERE IN YOUR MAINTENANCE OR SAY WE HAVE, UH, SOME, UM, INCREASED LOAD IN NUMBER OF TESTS THAT WE RUN SO THAT THEY ARE KIND OF THE OVERFLOW OF, OF A SAMPLING AND ANALYSIS THEY WOULD PROVIDE FOR US.

YEAH.

I WOULD JUST ADD THAT, UM, UH, LCRA, THERE'S ALSO CERTIFICATIONS THAT WE REALLY LOOK AT AND CONVENIENCE.

THESE ARE SAMPLES THAT WE SOMETIMES NEED TO TURN AROUND RAPIDLY AND HAVING A LOCAL LAB THAT CERTIFIED IN ALL OF THESE IS AN IMPORTANT SERVICE LEVEL FOR THESE, YOU KNOW, THE BULK OF OUR EVERYDAY TESTING IS DONE BY OUR OWN LAB.

WE HAVE EXTENSIVE LABORATORY, UH, CAPABILITIES, BUT THERE ARE CERTAIN SPECIALTY TESTING, UH, CERTAIN REGULATIONS WITH EMERGING CONTAMINANTS, YOU KNOW, THINGS LIKE PFS AND OTHERS WHERE WE HAVE TO SUBMIT ANALYSIS IS TO EPA PERIODICALLY.

WE REALLY DON'T STAFF UP TO DO THOSE.

ONCE EVERY FEW YEAR KIND OF ANALYSIS IS WE USE A HIGHLY QUALIFIED LAB LIKE LCRA, I WILL SAY WITH REGARDS TO HARMFUL ALGA ALGAE BOOMS, WE HAVE RECENTLY, UM, EXPANDED OUR INTERNAL CAPACITY TO DO THOSE KINDS OF TOXICITY TESTING.

AND, UH, AND, UH, WE'RE STILL KIND OF, YOU KNOW, GETTING OUR LEGS UNDERNEATH US THERE.

AND WE ANTICIPATE THAT, UH, , UH, WORK WITH US IN THAT REGARD.

IT WILL BE MORE INTERNALIZED, UH, AS OPPOSED TO WHAT WE'VE BEEN RELYING ON LCRA ON.

SO I THINK, YOU KNOW, THERE'LL BE SOME CHANGES IN TERMS OF THE VOLUME OF HARMFUL ALGAE BOOMS TESTING THAT WE WORK WITH LCRA ON.

SO IS THAT INTERNAL TESTING PART OF THIS OR IS IT, IT IS ONE OF THE SERVICES THAT WE HAVE TRADITIONALLY USED THEM FOR WOULD STILL DO IT ON OCCASION, BUT I THINK THE VOLUME OF THAT'S GOING TO DECREASE AS WE GET OUR SYSTEMS FULLY OPERATIONAL.

OKAY.

THANK YOU.

ANY OTHER QUESTIONS FOR STA I'LL MAKE A MOTION TO MOTION MADE BY VICE CHAIR, KESSEL PERRY, BY COMMISSIONER MORIARTY, ALL IN FAVOR, PLEASE RAISE YOUR HAND SHOWING APPROVED AND MSD.

THANK YOU.

LET'S MOVE TO ITEM

[D1. Update from Austin Integrated Water Resource Planning Community Task Force]

UM, I'VE BEEN DOWN HERE ALL DAY.

SO THIS AFTERNOON AT NOON, WE MET WITH THE WATER FORWARD AND IT WAS VERY GOOD PRESENTATION AND I'M, I'M A LITTLE FORGETFUL, SO I MAY MISS A THING OR TWO, BUT WHY DON'T YOU GO THROUGH IT? AND THEN I FIVE, ANYTHING TO CHIP IN WHICH I DOUBT I WILL.

THERE'LL BE A BETTER REPORT.

OKAY.

IS THAT ON? GREAT.

THANK YOU.

UM, HI, MARISA IS GONZALEZ.

UM,

[00:25:01]

WE PRESENTED A PROGRESS REPORT ON WATER FOR 2018 IMPLEMENTATION, UM, INCLUDING A REVIEW OF OUR FISCAL YEAR 2020 ANNUAL REPORT AND A PREVIEW OF OUR FISCAL YEAR 2021 ANNUAL REPORT.

THAT ANNUAL REPORT WILL BE DELIVERED IN JANUARY, 2022 AT OUR NEXT WATERFORD TASK FORCE MEETING.

UM, SOME OF THE HIGHLIGHTS FROM THE PAST YEAR INCLUDE, UM, UH, THE BEGINNING OF OUR AQUIFER STORAGE AND RECOVERY PILOT AND PROGRAM MANAGEMENT PROJECT, UH, CONTINUED IMPLEMENTATION OF MY ATX WATER, WHICH I'M SURE ALL OF Y'ALL ARE FAMILIAR WITH, UM, BEGINNING TECHNICAL WORK TO SUPPORT THE WATERFORD 2024 PLAN UPDATE AND COUNCIL APPROVAL OF ORDINANCES RELATED TO WATER BENCHMARKING, ONSITE, WATER REUSE, AND CENTRALIZED RECLAIMED WATER, UM, CONNECTION, UH, EXTENSION OF OUR CURRENT, UH, CENTRALIZED, RECLAIM WATER CONNECTION REQUIREMENTS.

WE ALSO HAD PRESENTATIONS ON, UM, AND AQUIFER STORAGE AND RECOVERY SURVEY THAT WAS SENT OUT TO THE BROADER COMMUNITY JUST TO UNDERSTAND, UM, KIND OF THE COMMUNITY'S UNDERSTANDING OF, UH, AQUIFER, STORAGE AND RECOVERY, AS WELL AS TOGETHER.

SOME INSIGHT INTO COMMUNITY VALUES AS RELATES TO, UM, WATER RESOURCE PLANNING, WATER SUPPLY PLANNING, AND, UM, WATER SUPPLY RESILIENCY.

UM, AND WE PROVIDED A PRESENTATION GIVING AN UPDATE ON OUR, UM, EXPECTED, UM, UH, SCOPE FOR THE WATER FOR 2024 UPDATES.

SO IF Y'ALL ARE FAMILIAR WITH WATERFORD, IT'S A PLAN THAT WE UPDATE REGULARLY AND WE'LL BEGIN UPDATE PROCESS HERE IN JANUARY OF 2022.

WE'RE ANTICIPATING COMPLETING THAT PROJECT OVER A TWO YEAR TIMEFRAME AND DELIVERING THAT FOR COUNCIL APPROVAL IN 2024.

UM, WE ARE GOING, WE APPROVED OUR MEETING SCHEDULE, WE'LL BE MEETING ON A BI-MONTHLY BASIS AND WE'LL BE AVAILABLE TO, UM, ANSWER ANY QUESTIONS AS NECESSARY.

WE JUST HAD THE MEETING.

SO THE ONE LITTLE QUESTION THAT I BROUGHT UP AT THE MEETING, WHICH I THINK IS APPROPRIATE TO RE MENTION IS WE DID THAT ORDINANCE THROUGH THE CITY COUNCIL AND WHICH PIECES OF IT ARE COMING INTO EFFECT LITERALLY IN DECEMBER OF THIS YEAR.

SO IN A FEW WEEKS, AND THE CITY COUNCIL WAS GRANTING AN EXEMPTION TO DEVELOPMENTS THAT HAD, UH, WHAT'S THE WORD I'M LOOKING FOR A MULTIFAMILY COMPONENT, A MULTIFAMILY COMPONENT.

AND I ASKED THE QUESTION, DOES THAT MEAN YOU COULD HAVE A DEVELOPMENT AND PUT ONE APARTMENT IN IT AND THEN ESCAPE THE RULES.

AND I DON'T KNOW THAT WE HAD THE GREATEST ANSWER.

AND MY, MY SUGGESTION IS WE STUDY THAT HARDER BECAUSE I THINK THE, THE INTENT OF THE CITY COUNCIL, I GUESS I'M DOING, I'VE GOT MY RESTAURANT.

UH, THE INTENT OF THE CITY COUNCIL WAS NOT TO LET PEOPLE ESCAPE THESE RULES WITH ONE APARTMENT.

UH, SO IF, IF IT NEEDS TO BE SOME POLICY EDICT BY THE WATER DEPARTMENT, THAT SUBSTANTIAL HOUSING IS IN FACT IN PLAY OR, UH, IT HAS TO GO BACK FOR AN AMENDMENT TO THE ORDINANCE, I THINK, UH, UH, I JUST WANT TO MAKE SURE THAT THOSE, THOSE RULES ARE STICK IF YOU KNOW WHAT I MEAN, AND KEVIN'S ABOUT TO SAY SOMETHING.

SO KEVIN CHRITTON AND AUSTIN WATER, WE WILL CERTAINLY GO BACK AND INVESTIGATE WITH, UH, LAW, WHAT, UH, STAFF, UH, LATITUDE WILL BE.

SO WE CAN CERTAINLY, UM, CERTAINLY RESEARCHED THAT.

OKAY.

ANYWAYS, THANKS FOR THE REPORT.

YOU ALL HAVE QUESTIONS, THE ORIGINAL QUESTION ON COMMISSIONER MORIARTY OR MELISSA OR KEVIN, IF NOT.

WELL, THANK YOU TOTALLY HELPED ME ALL DAY WITH AUSTIN WATERS.

I MEAN, THAT WAS A GOOD DAY WHEN THE CONDITION, I MEAN, I WAS SLEEPING IN A LOUD, OKAY.

LET'S MOVE ON TO ITEM

[D2. Update from Winter Storm Working Group]

WELL, WE HAD OUR LAST, UM, WORK GROUP MEETING, UM, FOR THE UNFORESEEN FUTURE, UM, ON OCTOBER 20TH.

AND, UH, THE PROCESS WAS MONTHLY SINCE MAY.

AND IN THAT LAST MEETING, UM, WE BASICALLY HELPED WELL AND BEF BEFORE THERE'S

[00:30:01]

THERE WERE 22 ITEMS, UM, IN WHICH, UM, WE'RE FORWARD-LOOKING THAT STILL NEEDED TO BE DONE.

AND, UM, THE COMMISSIONERS IN THE WORK GROUP HELP TO PRIORITIZE THOSE.

AND, UM, A SUMMARY OF THAT IS GOING TO BE PRESENTED IN THE, UM, AFTER ACTION REPORT THAT I BELIEVE, UM, DIRECTOR MAZARA WILL BE TAKING AND DISCUSSING WITH COUNCIL TOMORROW.

IS THAT CORRECT? THAT'S RIGHT.

ALL THE CITY, THERE ARE THREE PRIMARY CITY DEPARTMENTS THAT DID EXTENSIVE AFTER ACTION REVIEWS OF THE WINTER STORM, AUSTIN WATER, AUSTIN ENERGY, AND THEN A HOMELAND SECURITY EMERGENCY MANAGEMENT, THE OVERALL CITY, AND, UH, AND THOSE, UH, REPORTS AND, UH, AND, AND SUPPORTING MATERIAL AND, UH, WILL BE RELEASED TOMORROW.

AND THERE ALSO BE A, UH, A IN-PERSON PRESENTATION TO THE COUNCIL, UH, PROBABLY AROUND, UH, EARLY AFTERNOON, UH, FROM ALL THREE OF THOSE AGENCIES, UH, WITH REGARDS TO THE HIGH LEVEL COMPONENTS OF THOSE REPORTS.

AND THEN AN OPPORTUNITY FOR THE COUNCIL TO PROBE THAT A LITTLE MORE, A LITTLE MORE DEEPLY.

THANK YOU.

UM, I WANT TO SAY EXTRA, A SPECIAL THANKS TO ALL THE COMMISSIONERS ON THE WORK GROUP, COMMISSIONER MORIARTY, COMMISSIONER PEN, COMMISSIONER FISHER, AND COMMISSIONER WILLIAMS, WHO ISN'T HERE, UM, AND A HUGE THANKS TO STAFF AND THE UTILITY FOR, UM, REALLY PUTTING A LOT OF EFFORT FOR, UM, WE WERE IMPRESSED WITH THE WORK THAT YOU'VE DONE AND, UM, THE WORK GROUP WILL CONTINUE TO SERVE AS NEEDED.

UM, WE'RE, WE'RE NOT GOING TO DISSOLVE, BUT, UM, UNLESS WE'RE NEEDED FOR ANY ADVISORY IN THE FUTURE, WE'LL, WE'LL BE AVAILABLE.

AND I WOULD JUST SAY ON BEHALF OF THE STAFF THAT WE, UH, WE REALLY APPRECIATED THE EFFORT AND THE TIME, BUT ALL THE COMMISSIONERS WHO FELT IT WAS VERY VALUE ADDED AND, UH, AND NO REPORTING TO A COMMISSION WORKING GROUP, YOU KNOW, RAISES THE STANDARD OF, YOU KNOW, THE, THE EXPECTATIONS AND THE QUALITY OF THE WORK.

WE SPENT A LOT OF TIME PREPPING AND THINKING THROUGH WHAT WE WERE RECOMMENDING, AND I THINK THAT JUST LED TO A BETTER OVERALL RESULT.

AND, UH, AND I APPRECIATE THAT, UH, THAT WORK THAT YOU ALL DID.

AND, UH, AND I AM GOING TO NOTE THAT IN MY BRIEFING TO THE COUNCIL TOMORROW, UH, FOR, FOR, UH, THE COUNCIL TO UNDERSTAND, UH, THE IMPORTANT ROLE THAT YOU ALL PLAYED AND, UH, AND THE WORK THAT YOU DID.

SO AGAIN, APPRECIATE THAT.

COOL.

THANK YOU.

ANY QUESTIONS? UH, YEAH, I GOT ONE EASY QUESTION.

YES.

AH, I RECEIVED A SUMMARY REPORT.

ONE PAGE SUMMARY REPORT.

MY QUESTION IS AFTER TOMORROW WILL NOT BE POSSIBLE FOR TO SEND THE REPORT TO ALL THE COMMISSIONERS AFTER RELEASE.

YES.

WE'LL SEND YOU THE LINK TO ALL THE REPORTS.

AND, UH, AND I THINK THAT THAT IS CERTAINLY SOMETHING WE'LL GET TO YOU, IF YOU COULD JUST MAKE SURE THAT WE DO THAT, THAT THAT WILL BE OKAY.

AND THEN, UH, ANOTHER QUESTION IS, UH, WE DON'T WANT TO TRULY RESOLVE IT, THE GROUP, WHAT KIND OF GAME PLAN WE HAVE WE GO INTO? SO THE PLAN WOULD BE THAT THEY WOULD REPORT KIND OF THE PROGRESS AT OUR MEETINGS AT OUR COMMISSION MEETINGS.

AND THEN IF THERE'S A NEED TO DRILL DOWN TO A MORE, UH, A DEEPER FEEDBACK LEVEL, THEN, THEN THEY COULD CALL US TO, OKAY, THAT'S GOOD.

SO WE DON'T HAVE TO, WE JUST NEED TO CODE A CODER GROUP TOGETHER.

WE DON'T NEED TO, WE GROUP TOGETHER.

YEAH.

OKAY.

THAT'S RIGHT.

I MEAN, IT WOULD BE LIKE STILL AVAILABLE AS A, AS A RESOURCE.

WE WOULDN'T HAVE TO RECREATE IT.

COMMISSIONER GOT ANY QUESTIONS OR VICE CHAIR, COMMISSIONER AMMONIA.

UM, I THINK, I DON'T KNOW.

I HAVE QUESTIONS.

I JUST HAVE A LOOK, A COUPLE OF LITTLE STATEMENTS THAT REALLY AREN'T QUESTIONS.

BUT, UM, ONE POINT THAT I'D LIKE TO MAKE IS THAT WE ARE NOT OUT OF THE WOODS FOR THIS TYPE OF EPISODE.

I, UH, UH, I BELIEVE IT WILL TAKE THE UTILITY YEARS TO CONSTRUCT DEVELOP, UH, MAKE THE IMPROVEMENTS THAT WILL MAKE THE SYSTEM, UH, RESILIENT AGAINST THIS KIND OF FREEZING SITUATION.

SO AS MUCH AS WE WERE HOPING TO SAY, WELL, WE WERE HAD A BUNCH OF MEETINGS, EVERYTHING'S FINE.

NOT QUITE, BUT, UH, ON THE ROAD.

UH, THE OTHER THING, AND I WAS

[00:35:01]

AND WITHOUT THE, UH, BENEFIT OF A DETAILED ESTIMATE, HERE I GO, I'M GOING TO GIVE YOU MY ESTIMATE.

I THINK THERE'S A HUNDRED MILLION DOLLARS WORTH OF THINGS.

WHEN YOU LOOK AT TRANSMISSION LINES AND WATER TANKS AND ALL SORTS OF THINGS.

AND, UH, I LOOK AT THAT LIST OF PROJECTS AND, UM, SAY THAT THAT REALLY NEEDS A FOCUSED MANAGEMENT APPROACH TO THAT.

I THINK IF THOSE JOBS ARE KIND OF DISTRIBUTED, THEY MAY GET LOST.

AND I THINK THERE'S SOME REAL URGENCY TO GET THESE THINGS GOING AND COMPLETE.

AND FINALLY, I WOULD SAY, UH, I WOULD LIKE TO COMMEND THE CITY WATER DEPARTMENT, PEOPLE WHO WE MET WITH FOR SEVERAL MONTHS, UH, MOSTLY THEIR HONESTY.

THEY, UH, ANSWERED OUR QUESTIONS VERY HONESTLY.

AND I APPRECIATE THAT.

AND OUR CHAIR, I THOUGHT DID A SPLENDID JOB, A PROFESSIONAL JOB LEADING ON THIS UNCOMFORTABLE, DIFFICULT SUBJECT.

AND, UH, COULDN'T HAVE ASKED FOR MORE CONGRATULATIONS.

WELL, THAT'S IT.

ALL RIGHT.

ANY OTHER QUESTIONS, IF NOT, I REALLY APPRECIATE IT.

VICE CHAIR FOR HOSTING THAT, CONTACTING THAT GROUP, BECAUSE THAT'S SAY BUS ROUTE OR YOUR PERSONAL TIME REALLY APPRECIATE IT.

AND ALL THE MEMBERS APPRECIATE TOO.

OKAY.

LET'S MOVE ON TO ITEM E ONE

[E1. Fiscal Year 2020-2021 Financial Report]

IT'S LIKE, SORRY.

CHAIRMAN LEE IS, WE'RE JUST GETTING STARTED.

THIS IS IN RESPONSE TO SOME OF THE QUESTIONS YOU HAD PROBABLY TWO COMMISSION MEETINGS AGO.

YOU'D ASK FOR SOME KIND OF UPDATE ON YOUR END FINANCES IN WATER SUPPLY STATUS AND UNRELATED ITEMS IN THESE BRIEFINGS TODAY ARE IN RESPONSE TO THAT.

THANK YOU.

GOOD EVENING.

MY NAME IS JOSEPH GONZALEZ, UH, ASSISTANT DIRECTOR OF FINANCIAL SERVICES.

AND TONIGHT WE'LL BE PROVIDING A URINE FINANCIAL STATUS UPDATE FOR FISCAL YEAR 2021.

NEXT SLIDE, PLEASE.

I'LL START WITH A HIGH-LEVEL OVERVIEW.

UH, ACTUALLY LET ME TAKE A STEP BACK.

UH, GENERALLY WE DO THIS, UH, PRESENTATION IN DECEMBER.

IT TAKES US A LITTLE WHILE TO COMPILE THE FULL FINANCIAL STATUS REPORT.

UM, FISCAL YEAR END, OUR FISCAL YEAR END CLOSE HAPPENS MID OCTOBER.

AND SO THERE TAKES A LITTLE BIT OF TIME TO CLOSE EVERYTHING OUT, BUT THAT'S REALLY JUST THE START OF THE URINE PROCESS.

UM, CURRENTLY THE DEPARTMENTS IN CITY CONTROLLER'S OFFICE IS WORKING WITH OUR EXTERNAL AUDITORS TO, UH, CLOSE OUT THE FISCAL YEAR AND COMPLETE THE ANNUAL FINANCIAL AUDIT.

AND AS A RESULT, SOME OF THESE FIGURES AND NUMBERS COULD CHANGE THROUGH THROUGH THE COURSE OF THE AUDIT.

GENERALLY, WE DON'T SEE ANY, ANY BIG CHANGES, BUT JUST WANTED TO HAVE A DISCLAIMER THAT THESE NUMBERS ARE AS PARTS OF CHANGE.

I THINK AS WE GO THROUGH THE AUDIT PROCESS.

SO AS I SAID, THIS, UH, THIS SLIDE IS A SUMMARY HIGH-LEVEL SUMMARY OF OUR, UH, REVENUES AND EXPENDITURES, UM, STARTING WITH, UH, YOU KNOW, TOTAL REVENUES AND TRANSFERS IN WHICH, UH, UH, ENDED THE YEAR AT 40.6 MILLION BELOW BUDGET.

NOW THE BULK OF THAT, UH, UM, SHORTFALL, UH, COMES ON THE TRANSFER INSIDE.

UH, YOU KNOW, WE SPECIFICALLY RELATED TO OUR DEBT DEFEASANCE TRANSACTIONS.

UM, WE HAD BUDGETED FOR $35 MILLION DEBT DEFEASANCE, AND, UH, THE WAY THAT TRANSACTION WORKS IS WE TRANSFER IN MONIES INTO OUR OPERATING FUNDS.

AND SO WE HAD A $35 MILLION TRANSFER IN THAT DIDN'T HAPPEN.

AND THEN WE USE THOSE PROCEEDS TO THEN PAY OUT AND ACTUALLY PAY OFF THE BONDS THAT WERE, WERE, UH, THAT WE'VE TARGETED.

AND SO ON, ON BOTH THE REVENUE SIDE AND THE EXPENDITURE SIDE, YOU KNOW, WE WERE UNDER BUDGET IN 35 MILLION ON BOTH SIDES.

SO IT WAS OFFSETTING AND NO IMPACT TO, TO OUR FINANCIAL RESULTS.

JOSEPH, CAN YOU EXPLAIN WHY IT DIDN'T HAPPEN? YEAH, IT REALLY IT'S ABOUT MARKET CONDITIONS.

UM, YOU KNOW, WHEN, UH, INTEREST RATES CERTAINLY IMPACT US FROM, FROM A DEBT MANAGEMENT PERSPECTIVE WHEN INTEREST RATES ARE LOW, UH, IT'S, IT'S MUCH MORE FAVORABLE FOR, UH, BOND REFUNDINGS AND REFINANCING EXISTING DEBT AT LOWER RATES, YOU KNOW, MUCH LIKE WE WOULD REFINANCE, YOU KNOW, HOME MORTGAGE OR CAR LOAN, LOW INTEREST RATES REALLY, REALLY HELP US, YOU KNOW,

[00:40:01]

BUT, UH, WHEN RATES ARE REALLY LOW IT'S, UH, MAKES THE FEASANCE TRANSACTIONS LESS BENEFICIAL BECAUSE YOU'RE BUYING SECURITIES TO PUT INTO ESCROW THEN TO PAY OFF DEBT OVER A NUMBER OF YEARS.

AND, UM, SO WE, WE DEFERRED THE FEES AND TRANSACTION INTO THE FALL, UM, TO, TO TIME IT WITH, UH, CALL DATES FOR SOME OF OUR OUTSTANDING DEBT, WHICH IS NOVEMBER 15TH.

UM, AS A RESULT, WE CAN, WE CAN CALL THOSE SPECIFIC MATURITIES IN NOVEMBER.

UM, WELL, UH, W WE CAN, UH, TELL THE MARKET WE'RE GOING TO CALL THOSE SECURITIES IN NOVEMBER, AND THEN, YOU KNOW, WITHIN, YOU KNOW, MONTH OR TWO, EITHER SIDE, WE CAN, WE CAN DO THE TRANSACTION WITHOUT HAVING TO PUT THE, THOSE MONIES INTO A LONG-TERM ESCROW THAT'S LESS EFFICIENT AT THE LOWER INTEREST RATES.

SO IT JUST ALLOWED US TO HAVE A MORE EFFICIENT DEFEASANCE TRANSACTION.

SO WE DEFERRED THE TRANSACTION, UM, INTO GENERALLY WE'VE HAD ABOUT 30, $35 MILLION DEFEASANCE TRANSACTIONS EVERY YEAR.

AND THIS YEAR WE'VE BUDGETED FOR 65, AS WE'RE COMBINING, YOU KNOW, THE PLAN TO FEASANCE WITH THE ONE THAT WAS DEFERRED FOR 21.

MAKES SENSE.

OKAY.

UM, SO, UH, AS I WAS SAYING, YOU ON THE REVENUE SIDE, UH, IF YOU EXCLUDE TRANSFERS IN AND OUT OR TRANSFERS, THEN ON THE REVENUE SIDE, UH, WE HAD ABOUT A $7 MILLION SHORTFALL, WHICH EQUATES TO ABOUT A 1% SHORTFALL.

UH, GENERALLY WE LIKE TO BE, YOU KNOW, IN A ONE OR 2% RANGE IN TERMS OF, OF WHERE WE ENDED UP IN REVENUES, UH, AS COMPARED TO BUDGET, WE'D LIKE TO BE ON THE PLUS SIDE, BUT, UH, YOU KNOW, DESPITE A CHALLENGING YEAR, UM, THE SPIKING, YOU KNOW, REALLY A CHALLENGING TWO YEARS WITH THE PANDEMIC AND THE WINTER STORM, UM, YOU KNOW, TO COME IN AT 1% UNDER BUDGET, UH, YOU KNOW, IS NOT A BAD YEAR, ESPECIALLY WHEN YOU CONSIDER THE WET SPRING AND SUMMER AND MILD SUMMER, THAT REALLY GOT A SLIDE GO INTO MORE DETAIL.

BUT, UH, IT REALLY IMPACTED US FROM, FROM A REVENUE PERSPECTIVE, FROM A REQUIREMENTS PERSPECTIVE, WE WERE ABOUT 25.6 MILLION BELOW BUDGET.

AND AGAIN, YOU KNOW, THE BIGGEST PART OF THAT, UH, BELOW BUDGET NUMBER IS THE, THE PIECE OF THE TRANSACTION, THE TRANSFER OUT THAT DIDN'T OCCUR IN AN FYI 21.

UM, IN ADDITION, WE DID, UH, COME IN OVER BUDGET ON OUR TOTAL DEBT SERVICE, WHICH, WHICH MAY BE COUNTERINTUITIVE INTUITIVE, BUT WE STARTED THE YEAR WITH THE BIGGER BEGINNING BALANCE THEN THAN WE HAD ANTICIPATED.

AND WE USED SOME OF THOSE PROCEEDS TO PRE-FUND PART OF NEXT YEAR'S DEBT.

UM, AND WHICH WE THOUGHT FELT LIKE IT WAS, UM, YOU KNOW, A WISE USE OF THE MONEY, BUT ALSO BECAUSE THE DEFENSE TRANSACTION DIDN'T OCCUR, WE DIDN'T BUY DOWN THE DEBT THAT WE HAD ANTICIPATED MINE DOWN.

SO USING THAT EXTRA BEGINNING BALANCE THAT WE STARTED WITH TO PAY DOWN SOME OF NEXT YEAR'S DEBT REALLY, UH, WAS, WAS DONE KIND OF IN LIEU OF THE PIECE OF TRANSACTION THAT DIDN'T HAPPEN IN 21.

LET'S SEE.

NEXT SLIDE PLEASE.

SO, UM, Y'ALL DRILLED A LITTLE BIT INTO OUR REVENUE, STARTING WITH OUR WATER SERVICE REVENUES, UH, WATER SERVICE REVENUES, UM, REALLY WAS, UH, YOU KNOW, MUCH LIKE, UH, YOU KNOW, UT DURING THEIR LAST THREE FOOTBALL GAMES IS A TALE OF TWO HALVES.

SO WE STARTED STRONG, UM, YOU KNOW, THROUGH SIX MONTHS IN, DESPITE THE WINTER STORM, WE WERE ABOVE BUDGET THROUGH THE FIRST SIX MONTHS, UH, TO THE TUNE OF $3.3 MILLION.

UM, HOWEVER, YOU KNOW, OVER THE LAST SIX MONTHS, AS I, AS I SAID, UH, YOU KNOW, UH, ABOVE AVERAGE RAINFALL AND MILD TEMPERATURES, UH, RESULTED IN REDUCED WATER DEMAND AS WE FINISHED THE LAST SIX MONTHS OF THE YEAR, 16.8 MILLION BELOW BUDGET FOR A NET SHORT FALL, UH, 13 AND A HALF MILLION, UH, WATER SERVICE REVENUES.

NEXT SLIDE PLEASE.

SO ON THE WASTEWATER SIDE, UH, WE, WE CAME IN ABOVE BUDGET, UH, 6.3 MILLION ABOVE BUDGET WITH TOTAL REVENUES OF $263 MILLION.

UM, AND WASTEWATER REVENUES WERE REALLY BENEFITED BY, UM, YOU KNOW, MORE CUSTOMERS, PRIMARY RESIDENTIAL MULTIFAMILY WORKING FROM HOME AND WHICH, WHICH DROVE UP OUR WINTER WASTEWATER AVERAGE A LITTLE BIT HIGHER THAN WE HAD ANTICIPATED AND RESULTED IN, YOU KNOW, $6.3 MILLION, UH, REVENUE SURPLUS ON THE WASTEWATER SIDE.

THEN AGAIN, COMBINING THE TWO FOR A NET REVENUE SHORTFALL OF 7 MILLION.

NEXT SLIDE, PLEASE.

[00:45:03]

UH, YOU CAN SEE ON THIS CHART, IT SHOWS A MONTHLY BUDGET TO ACT OUR ANNUAL BUDGET TO ACTUAL REVENUES BY CUSTOMER CLASS.

AND, AND SO THAT REVENUE SHORTFALL WAS REALLY SPREAD THROUGH ALMOST ALL OF OUR CUSTOMER CLASSES, ALTHOUGH RESIDENTIAL AND MULTIFAMILY ACCOUNTED FOR ABOUT $8 MILLION OR 59% OF THE 13.5 MILLION WATER REVENUE SHORTFALL, NEXT SLIDE, PLEASE.

AND THIS CHART SHOWS THE ACTUAL RAINFALL FOR THE YEAR BY MONTH AS COMPARED TO HISTORICAL AVERAGES.

AND, YOU KNOW, THIS, UH, REALLY SHOWS HOW OUR, UM, HOW SUSCEPTIBLE WE ARE TO WHERE THE WEATHER CONTINUES TO BE THE PRIMARY, UH, DETERMINANT OF, UH, WATER CONSUMPTION, PARTICULARLY DURING THE SUMMER MONTHS.

AND, UH, YOU KNOW, SO WHEN WE HAD, UH, RAINY SPRING RAINY SUMMER, UH, GENERALLY WE'LL SEE REVENUES GO DOWN AND, YOU KNOW, THAT'S EXACTLY WHAT HAPPENED THIS YEAR.

NEXT SLIDE, WE'LL MOVE ON TO, UH, REQUIREMENTS.

AND THIS IS A SUMMARY OF OUR TOTAL BUDGET BY CATEGORY.

UM, ACTUALLY TOTAL TOTAL EXPENDITURES BY CATEGORY.

UM, YOU KNOW, WE HAD, UH, 595, ALMOST 596 MILLION IN EXPENDITURES, AND ABOUT 70% OF THAT IS FOR OUR OPERATION AND MAINTENANCE COSTS OR OUR, UM, OPERATING COSTS AND, AND DEBT SERVICE COMBINED, UM, WHILE THE REMAINING 29% IS, UH, RELATED TO TRANSFERS AND, AND OTHER REQUIREMENTS.

UM, I POINT OUT THAT, UM, YOU KNOW, IN TERMS OF DEBT MANAGEMENT COSTS, UH, 31.6%, THAT INCLUDES THE ADDITIONAL FUNDING TO FUND PRE-BOND PART OF NEXT YEAR'S DEBT SERVICE.

UH, SO IT'S A LITTLE BIT OVERSTATED, BUT EVEN AT THAT, YOU KNOW, WE ENDED THE YEAR WITH 31.6% OF OUR EXPENDITURES ARE BEING SPENT ON DEBT SERVICE.

AND JUST TO GIVE YOU A HISTORICAL PERSPECTIVE, BACK IN 2015, BEFORE WE REALLY STARTED OUR DEBT MANAGEMENT EFFORTS, UH, WE HAD, UM, THAT SERVICE REQUIREMENTS, UH, IN THE, IN THE RANGE OF 42 AND A HALF PERCENT OF OUR OVERALL BUDGET, UM, AND, UH, 42 AND A HALF PERCENT, LET ME PULL IT DOWN A LITTLE BIT.

UM, SO WE'VE, WE'VE GONE FROM 42 AND A HALF PERCENT IN 2015 TO, UH, DOWN TO 29% LAST YEAR AND A LITTLE BIT UPTICK WITH THE PRE-FUNDING OF NEXT YEAR'S DEBT SERVICE UP TO 31%.

BUT, UM, YOU KNOW, THAT THAT MOVEMENT HAS REALLY BEEN A GAME CHANGER IN TERMS OF OUR, OUR OVERALL FINANCIAL CONDITION AND FINANCIAL HEALTH.

UM, SO IT'S SOMETHING WE'RE REALLY PROUD OF AND SOMETHING, UH, YOU KNOW, THAT IMPACTED MY, UH, YOU KNOW, TALK A LITTLE BIT, YOU KNOW, IN THE LAST HALF OF THE PRESENTATION, UH, ABOUT OUR DEBT MANAGEMENT EFFORTS.

AND IT'S SOMETHING WE'RE REALLY PROUD OF NEXT SLIDE, PLEASE.

SO THIS SLIDE JUST BREAKS DOWN OUR OPERATING EXPENDITURES, OUR ONM EXPENDITURES, UH, BY MONTH AND GENERALLY SPEAKING, THERE'S FLUCTUATIONS, UM, YOU KNOW, MONTH BY MONTH, YOU KNOW, NOT EVERY YEAR IS EXACTLY THE SAME.

AND YOU CAN SEE, UH, THE DARK BLUE LINE REPRESENTS OUR ACTUAL EXPENDITURES, THE KIND OF GRAY, THE GRAY BAR REPRESENTS BUDGET, AND THE GREEN LINE IS PRIOR YEAR.

SO, UM, YOU KNOW, WE, WE GENERALLY SEE SOME FLUCTUATIONS MONTH TO MONTH THROUGHOUT THE YEAR.

UH, BUT WE ENDED THE YEAR, UH, WITH ONM COSTS OF $253 MILLION, WHICH WAS ABOUT 5 MILLION BELOW BUDGET.

UM, DESPITE SPENDING, YOU KNOW, $5 MILLION FOR A WINTER STORM, URI RESPONSE COSTS ABOUT A $2 MILLION FOR OVER TIME AND, AND, UH, YOU KNOW, ANOTHER $2 MILLION FOR WATER, WHICH WAS DISTRIBUTED AND THEN VARIOUS OTHER CONTRACTS FOR REPAIRS.

AND AS WE, UH, RESPONDED TO, UH, TO THE WINTER STORM, NEXT SLIDE, PLEASE, THIS SLIDE IS A SUMMARY VERSION OF OUR FUND SUMMARY, AND IT SHOWS IT COMBINES OUR REVENUES EXPENDITURES AND, YOU KNOW, BEGINNING AND ENDING BALANCE.

YOU CAN SEE, AS I MENTIONED EARLIER, THAT WE STARTED THE YEAR WITH 231 MILLION, UH, DOLLARS OF BEGINNING BALANCE, WHICH WAS ABOUT 24 AND A HALF $24.6 MILLION HIGHER THAN ANTICIPATED AS, YOU KNOW, LAST YEAR'S REVENUES CAME IN A LITTLE BIT HIGHER THAN

[00:50:01]

UM, AND THEN YOU SEE THE $40 MILLION, UH, REVENUE AND TRANSFER IN SHORTFALL.

THAT AGAIN IS PRIMARILY RELATED TO THE DEFERRAL OF OUR DEFEASANCE TRANSACTION.

UM, ON, ON THE EXPENDITURE REQUIREMENT SIDE, AS I MENTIONED, WE WERE $25 MILLION BELOW BUDGET.

UM, SO NET, UH, YOU KNOW, IF YOU, WE STARTED WITH A HIGHER THAN EXPECTED BEGINNING BALANCE, UH, WE SPENT DOWN ABOUT $15 MILLION OF THAT AND STILL INTO THE YEAR ALMOST $10 MILLION ABOVE WHERE WE THOUGHT WE WOULD BE IN TERMS OF, OF OUR ENDING BALANCE.

UM, AND DON'T HAVE IT.

WE DO HAVE A DEBT SERVICE COVERAGE HERE, A DEBT SERVICE COVERAGE OF 1.75 IS, IS, UM, IN COMPLIANCE WITH OUR UPDATED FINANCIAL POLICIES THAT COUNCIL APPROVED REALLY FOR FY 22 AS PART OF THE ANNUAL BUDGET PROCESS.

BUT, UH, WE'RE, WE'RE HAPPY THAT FOR 21 BEFORE THAT FINANCIAL POLICY CHANGE, YOU KNOW, WE, WE STILL ARE IN COMPLIANCE WITH THE NEW FINANCIAL POLICY AND, UH, OUR, OUR DAY'S CASH ON HAND CONTINUES TO BE STRONG IN THE 280 DAY RANGE.

UH, NEXT SLIDE PLEASE.

NOW, UM, AGAIN, WE'LL TALK A LITTLE BIT MORE ABOUT DEBT MANAGEMENT, UH, IN THE NEXT FEW SLIDES, BUT, UM, YOU KNOW, CAPITAL RECOVERY FEES HAS REALLY BEEN KIND OF THE IMPETUS OF, UH, AND ONE OF THE BIGGEST DRIVING FACTORS OF OUR DEBT MANAGEMENT EFFORTS AND, YOU KNOW, CAPITAL RECOVERY FEES OF THE YEAR AT $44 MILLION, UH, WHICH WAS $6 MILLION ABOVE .

UM, AND THEN JUST TO GIVE YOU A SENSE OF HOW THAT'S GROWN, UM, YOU KNOW, BACK IN 2016, WE HAD A CAPITAL RECOVERY FEEDS, UH, COMBINED CAPITAL COVER FEE REVENUES OF 25 MILLION.

UM, AND IT'S THESE FEES THAT WE USE PRIMARILY TO WHAT WE USE THEM EXCLUSIVELY TO DEFEASE DEBT, BUT SOMETIMES WE SUPPLEMENT IT WITH SOME OPERATING FUNDS.

UM, SO, SO THE INCREASES IN CAPITAL RECOVERY FEES IS, IS, IS AGAIN KEY TO OUR DEBT MANAGEMENT EFFORTS.

NEXT SLIDE PLEASE.

AND THOSE NUMBERS THAT 44 MILLION IS, IS NET OF FEE WAIVERS.

UM, YOU KNOW, THERE ARE A VARIETY OF CATEGORIES OF FEE WAIVERS WITH THE BIGGEST ONE BEING, UH, AFFORDABLE HOUSING, UM, AND FOR, FOR THE YEAR AFFORD AFFORDABLE HOUSING FEE WAIVERS OF 1.8 MILLION ACCOUNTED FOR ABOUT 57% OF THE TOTAL FEE WAIVERS.

AND SO AGAIN, THE 44 MILLION ON THE PREVIOUS SLIDE IS NET OF THESE NUMBERS.

NEXT SLIDE PLEASE.

AND SO THIS SLIDE TAKE AN OPPORTUNITY TO BRAG A LITTLE BIT, UH, YOU KNOW, WE'VE REALLY HAD A CONCERTED DEBT MANAGEMENT EFFORT, YOU KNOW, GOING BACK TO, TO 2016, UH, WHEN WE STARTED USING CAPITAL RECOVERY FEES TO DEFEASE DEBT.

UM, AND AS A RESULT, WE WERE AWARDED A 20, 21 GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD FOR EXCELLENT IN GOVERNMENT FINANCE FOR, UM, FOR COMING UP WITH A CREATIVE SOLUTION TO A COMMON PROBLEM.

COMMON PROBLEM, YOU KNOW, UH, FOR, FOR WATER AND WASTEWATER UTILITIES IS, UM, YOU KNOW, GROWING INFRASTRUCTURE COSTS, WHICH OBVIOUSLY RESULTS IN GROWING DEBT SERVICE COSTS.

AND SO OVER, OVER THAT TIME, WE'VE, WE'VE BEEN ABLE TO MANAGE, UH, OUR DEBT SERVICE COSTS THROUGH A SERIES OF EFFORTS THROUGH THE USE OF CAPITAL RECOVERY FEES FOR DEFEASANCE, UM, THROUGH, UM, USING, UH, REFUNDINGS REFINANCING EXISTING DEBT AT LOWER RATES, UM, WATER DEVELOPMENT, BOARD LOANS, UM, YOU KNOW, DURING, DURING, UH, 21 AT THE BEGINNING OF THE FISCAL YEAR, UH, WE HAD 36.8 MILLION OF WATER DEVELOPMENT BOARD LOANS ON THE CLEAN WATER AND DRINKING WATER STATE REVOLVING FEE, UH, FUND SIDE.

UH, THOSE LOANS WERE AT 0% OR AT ALMOST 0% FOR, FOR, FOR EACH OF THEM.

ONE OF THEM WAS 0%, UH, FOR, FOR THE ENTIRE TERM OF THE LOAN.

AND THE OTHER WAS LIKE SOMETHING LIKE IN THE 0.1%, UH, RANGE, IT WAS, UM, YOU KNOW, WE, WEREN'T ONLY PAYING INTEREST IN THE LAST THREE OR FOUR YEARS.

SO THAT CONTINUES TO BE, UH, PLAY A BIG ROLE IN TERMS OF OUR DEBT MANAGEMENT EFFORTS.

AND IN ADDITION, OVER THAT TIME, WE'VE INCREASED OUR LEVEL OF FUNDING, UH, TO CASH FINANCE, OUR, OUR, OUR CAPITAL PROGRAM, UM, YOU KNOW, TARGETING YOU'RE REALLY BETWEEN 40 AND 50% OF OUR CAPITAL PROGRAM BEING FUNDED, UH, WITH CASH.