* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:05] PAIGE, UH, I THINK I SAW HER A SECOND AGO. KATHY, ARE YOU WITH US? YES, I SURE AM THERE. GREAT, THANK YOU. AND I'M MAYOR PRO TE. I THINK YOU JUST SAID THAT SHE WAS WITH US, BUT, UH, UH, HEADED IN, UH, LET'S GO AHEAD AND CONVENE TODAY'S, UH, CITY COUNCIL WORK SESSION. IT IS, UH, NINE 11. UH, TODAY IS SEPTEMBER 26TH. UM, 2022. I'M SORRY. SO 27TH, 2022. UM, WE ARE IN THE BOARDS AND COMMISSION ROOM HERE FOR THE, UH, WORK SESSION COLLEAGUES. I WAS, UH, ASKED TO, TO PAY A LITTLE BIT MORE ATTENTION TO HOW WE STRUCTURE THESE WORK SESSIONS TO TRY AND GET THINGS UP THAT WERE MOST, UH, LIKELY TO HELP US WITH THE MEETING ON THURSDAY AND OF GREATEST WIDESPREAD INTEREST. THIS IS THE SCHEDULE I INTEND TO ORDER, INTEND TO FOLLOW HERE, UNLESS, UH, THE WILL OF THE COUNCIL IS DIFFERENT. WE'RE GONNA DO THE COUNCIL MEETING SCHEDULE, PULLED BY THE MAYOR PRO TA. WE'RE GONNA DO THE STATESMAN POD, UH, WHICH, UH, I PULLED, I DON'T, DON'T KNOW THAT THAT WILL TAKE TOO LONG. IT'S MORE, UH, KIND OF A SURFACING OR AIRING OF, UH, ISSUES OR AMENDMENTS. UH, SO PEOPLE CAN BETTER PLAN FOR THURSDAY. UH, AND THEN, UH, UH, I'M ON A CALL UP, UH, COUNCIL MEMBER OF TOPOS ITEM 92, WHICH IS THE, UH, CITY OWNED REAL ESTATE ITEM. NOT SO MUCH TO DISCUSS IT, BUT TO GIVE KATHY THE CHANCE TO KINDA LAY OUT WHAT THAT IS, CUZ IT'S, IT'S BIG AND HAS A LOT OF ISSUES. WE CAN RETURN TO THAT LATER TODAY TO DISCUSS IT. UH, BUT THEN TO, UH, GET, UH, AND THEN AFTER WE HAVE THAT, TO HAVE, UH, THE BRIEFING ON HEALTH SOUTH, FOLLOWED BY THE BRIEFING ON AUSTIN ENERGY, UH, HAVING GOTTEN THROUGH THOSE THINGS. WE'LL TAKE A LOOK AT, UH, UH, AGENDA MANAGEMENT FOR THURSDAY'S MEETINGS, CUZ WE WILL HAVE HIT THE BIG THINGS AT THAT POINT. UH, AND AFTER WE'RE THROUGH WITH THAT, THEN WE'LL RETURN TO THE OTHER POLL ITEMS, UH, THAT WE DIDN'T, UH, COVER, UH, WHICH I THINK ARE THE ILA UH, ITEMS. AND THEN WE'LL DO THE BRIEFING ON, UH, THE CLIMATE EQUITY PLAN, THE BRIEFING ON TRASH AND CREEKS. UH, AND THEN THE DISCUSSION OF ITEM 92, WHICH IS THE, UH, CITY OWNED REAL ESTATE, UH, ITEM. SO THAT'S GENERALLY THE, THE PROCESS, THE ORDER I'M GONNA FOLLOW, WHICH I THINK HES US UP EARLY FOR THINGS THAT'LL BEST IMPACT THE WORK WE HAVE TO DO THIS WEEK. UM, SO IF, IF, YES, UH, YES. UH, KATHY, AND THEN ANNE, JUST A QUICK QUESTION ABOUT THAT. I'M GLAD THAT WE'RE TAKING UP AND PRIORITIZING SOME OF THOSE, SOME OF THE COUNCIL PULLED ITEMS BECAUSE I THINK THAT REALLY DOES HELP US WITH OUR MEETING MANAGEMENT ON THURSDAY. UM, THE ILAS, IF WE COULD, I KNOW I HAD PULLED THEM AT THE COUNCIL MEETING AND WE DIDN'T TAKE THEM UP, YOU KNOW, I DIDN'T, IT DIDN'T BECOME CLEAR THAT WE WEREN'T GONNA GET TO THEM UNTIL QUITE LATE IN THE DAY. AND SO I JUST WANNA MAKE SURE IF WE'RE, SOUNDS LIKE WE'RE NOT GONNA GET TO THEM UNTIL QUITE LATE IN THE DAY TODAY TOO. AND SINCE THAT INVOLVES CITY STAFF, I JUST WANNA BE, I JUST WANNA BE, UM, CONTENT OF THAT. SO IF WE'RE NOT GONNA TAKE IT UP HERE THIS MORNING, COULD WE ARRIVE AT A TIME WHERE WE WILL TAKE IT UP SO THAT OUR STAFF AREN'T WAITING AROUND ALL DAY? YEAH, I MEAN, I DON'T KNOW. WE'RE GONNA, I DON'T KNOW HOW LONG THE INITIAL PULLED ITEMS ARE GONNA BE. I DON'T THINK THEY'RE GONNA TAKE VERY LONG. SO I THINK WE'RE IN THE TWO BRIEFINGS THAT WE NEED TO REALLY DO THURSDAY, AND THEN I HAVE IT RIGHT AFTER THAT. UH, SO, SO MANAGER, UH, YOU MIGHT LET THE I ILA STAFF KNOW I, WE NEED TO HIT IT BECAUSE IT WAS POSTPONED FOR LAST WEEK, BUT WE'LL HIT IT RIGHT AFTER THOSE FIRST TWO BRIEFINGS BEFORE WE DO OTHER STUFF. YEAH. ALTERNATIVELY, I COULD JUST LAY OUT MY, MY QUESTIONS AND WE COULD DISCUSS AS A COUNCIL AND THIS STAFF COULD ADDRESS IT ON THURSDAY. I'D LIKE TO, UH, DO THE SAME WITH THE RENAISSANCE MARKET, WHICH I DID NOT PULL FOR TODAY, BUT I DO WANNA MAKE A FEW COMMENTS ABOUT IT. BUT I DIDN'T WANNA HAVE TO HAVE STAFF WAIT AROUND ALL DAY WHEN I SAW THAT THERE WERE SO MANY BRIEFINGS. SO I INTENDED TO JUST TALK ABOUT THAT WITHOUT STAFF AND THEN ASK STAFF TO WAIT IN ON THURSDAY. THAT WOULD BE FINE TOO. UH, UNLESS STAFF COULD, I MEAN, TO THE DEGREE WE CAN GET STUFF DONE HERE AS OPPOSED TO THURSDAY, I'D LOVE TO BE ABLE TO, TO DO THAT. SO LET'S, LET'S SEE. KATHY, IF THEY'RE ABLE TO, IF ACCEPT AND THEY CAN'T, AND IF THEY CAN, I DO THINK WE NEED STAFF INPUT ON THE ILA. SO IF, BUT IF WE COULD, AGAIN, JUST FIGURE OUT A, A MORE PRECISE TIME, THAT WOULD BE GREAT. TOUGH TO DO. AND IT SOUNDS LIKE YOU DID AROUND, AROUND TIME, RIGHT? AF RIGHT AFTER THOSE FIRST TWO BRIEFINGS. UM, AND JUST QUICK QUESTION. DO I, I CAN'T REMEMBER. DO WE HAVE EXECUTIVE SESSION TODAY? WE [00:05:01] DO NOT. OKAY, THANK YOU. OKAY, SO [A. Pre-Selected Agenda Items (Part 1 of 2)] LET'S GO AHEAD AND START. UH, UH, ALLISON, UH, YOU PULLED THE, UH, COUNCIL MEETING SCHEDULE. DID YOU WANNA ADDRESS THAT? UM, YES. I, UM, AM CONCERNED ABOUT THE SCHEDULE FOR JULY AND AUGUST. WE SEEM TO HAVE AN EXTRA COUNCIL MEETING, UM, IN THAT PERIOD BEFORE BUDGET THEN WE HAD THIS YEAR OR LAST YEAR. I'M ALSO CONCERNED ABOUT THE TIMING, UM, FOR WHEN WE'RE HAVING BUDGET HEARINGS, UM, OR, YOU KNOW, THE BUDGET SESSIONS. I WANNA MAKE SURE THAT WHEN WE HAVE THE BUDGET HEARING THAT IT'S JUST A WORK SESSION THAT WE ARE ABLE AND PLANNING TO TALK THAT DAY. UM, AND I THINK THAT WE NEED OTHER TIME WITH A COUNCIL THAT'LL HAVE SO MANY NEW MEMBERS TO BE TALKING ABOUT BUDGET. AND I DON'T THINK WE'RE, WE'RE, UM, WORKING THAT IN. DID YOU HAVE, UM, HOW, HOW, HOW WOULD YOU PROPOSE TO RESPOND TO THOSE QUESTIONS WITH THIS ITEM COMING UP ON, ON THURSDAY? WOULD YOU WANT STAFF TO PROPOSE SOMETHING DIFFERENT OR A BETTER ARTICULATION OR DEFINITION OF WHAT'S HAPPENING ON PARTICULAR DAYS? OR DID YOU HAVE A PROPOSAL? WELL, I, I WOULD PROPOSE THAT WE, UM, NOT HAVE, UM, ONE OF THOSE COUNCIL MEETINGS, UM, SCHEDULED AND THAT WE MAY BE PLANNED THAT WE COULD GO TO THE SECOND DAY IF WE NEED TO. UM, SO THAT, UM, WE ARE ABLE TO, UM, SO THAT IF WE HAVE TO GO OVER, WE HAVE A BIG MEETING, WE HAVE THE SPACE TO DO THAT. UM, BUT I THINK IT'S UNREALISTIC TO HAVE TWO, IT'S UNREALISTIC TO HAVE TWO COUNCIL MEETINGS BEFORE BUDGET, UM, AND ACTUALLY BE ABLE TO FOCUS ON BUDGET. SO I WOULD LIKE TO SEE ONE OF THOSE COUNCIL MEETINGS REMOVED, MAYBE THE SECOND ONE. AND THEN FOR THE FIRST ONE WE BLOCK OFF EITHER THE FRIDAY OR, OR, YOU KNOW, NOTE THAT ON WEDNESDAY WE MIGHT TAKE UP THE CONSENT AGENDA FOR THAT. UM, AND THEN I THINK WE NEED ANOTHER, WE NEED ANOTHER WORK SESSION DAY ONE OF THOSE WEEKS BEFORE BUDGET, AT LEAST WE COULD ALWAYS CANCEL THEM, BUT I, I DO THINK IT'S IMPORTANT. CERTAINLY COMES MEMBER, WE CAN WORK WITH YOUR OFFICE TO, UH, HAVE AN AMENDMENT THAT YOU COULD PROPOSE ON THURSDAY. BUT I THINK ONE, ONE THING JUST FROM STAFF'S PERSPECTIVE, JUST TO HAVE THIS OUT THERE AND THEN OBVIOUSLY WITH A, A NEW COUNCIL NEXT TERM, UH, THERE WE CAN SCHEDULE A TIME AT A WORK SESSION EARLY ON IN THE YEAR TO TALK THROUGH THE ENTIRE, UH, CALENDAR. UM, BECAUSE THERE WILL BE, UH, NEW COUNCIL MEMBERS THAT WOULD BE WANTING TO ENGAGE IN THAT CONVERSATION AS WELL. UM, BUT FOR THE TIME BEING, UH, I HEAR YOU ON NOT HAVING TWO MEETINGS IN THE SUMMER, AND CERTAINLY, UH, WE CAN GIVE YOU LANGUAGE THAT WOULD HAVE THAT ALTERNATIVE FOR THURSDAY IS CONSIDERATION. BUT IT'S NOT THAT I'M NOT WANT TO HAVE THE MEETINGS, I JUST DON'T THINK IT'S REALISTIC IN TERMS OF THE AMOUNT OF WORK THAT WE NEED TO DO TO FOCUS ON THE BUDGET. UM, I THINK WE ALREADY, WE ALREADY, UM, HAVE SOME CHALLENGES WITH THE BUDGET PROCESS. THE OTHER THING THAT I WANTED TO RAISE IS THAT THERE IS THE NATIONAL LEAGUE OF CITIES MEETING IN NOVEMBER, UM, RIGHT BEFORE THANKSGIVING. IT'S IN ATLANTA NEXT YEAR. UM, AND I DON'T KNOW IF WE HAVE TO RESOLVE THAT RIGHT NOW, BUT WE MAY, UM, WE MAY FIND THAT WE HAVE SEVERAL COUNCIL METER MEMBERS WHO WANT TO GO TO THAT. UM, I DIDN'T HAVE A SOLUTION GIVEN THE TIMING OF HOW WE WOULD HANDLE THAT, UM, OTHER THAN, UM, POTENTIALLY CANCELING THE MEETING OR MOVING IT EARLIER IN THE WEEK. UM, BUT I WANTED TO RAISE THAT AND, UM, I NEED TO CHECK IN WITH SOME OF MY COLLEAGUES, BUT THAT MAY ALSO BE AN ISSUE FOR THIS YEAR. OKAY. IF YOU COULD WORK WITH A MANAGER, COME UP WITH AN AMENDMENT, THE ALLISON, IF YOU COULD POST THAT MAYBE TOMORROW SO THAT PEOPLE CAN COMPARE IT TO THEIR CALENDARS RATHER THAN GETTING SOMETHING NEW ON THE DICE. THAT WOULD BE, UH, BEST. UH, I'LL ALSO TAKE A LOOK, EVEN THOUGH I WON'T BE HERE IN TERMS OF THE US CONFERENCE OF MAYOR DATES TO SEE, MAKE SURE THAT THEY'RE, THEY'RE CLEARED AS WELL TO THE NLC MEETING THIS YEAR. I WILL BE OUT OF TOWN AND, AND I THINK THERE ARE AT LEAST TWO, MAYBE MORE COUNCIL MEMBERS PLANNING TO ATTEND. SO WE SHOULD PROBABLY JUST SURFACE THAT IN A, AND POSSIBLY ADDRESS THAT. OKAY. AND THAT'S NOVEMBER 17TH OR SOMETHING LIKE THAT? I CAN'T REMEMBER EXACTLY WHAT THE DATE IS. IT'S THE WEEK BEFORE THANKSGIVING. I, I THINK OKAY. CHECK. SAME KIND OF THING. YOU MEAN IT'S GONNA BE HARD TO MAKE CHANGES ON THE, ON THE DAIS, UH, AND IN HOPES THAT WE CAN ACTUALLY GET PAST THAT AND RESOLVE THAT RATHER THAN HAVING THAT COME BACK TO NEXT WEEK. IF ANYBODY HAS CONCERNS OR THOUGHTS, FIRST ONE UP, START A STRING ON [00:10:01] THAT ON THE MESSAGE BOARD, OTHER PEOPLE COULD THEN ADD TO IT. AND THAT'S YOUR, YOUR BEST SHOT AT GETTING YOUR SCHEDULE, RECOGNIZING THAT YOU'LL THE COUNCIL REVISIT IT EARLY IN THE YEAR WHEN YOU HAVE NEW PEOPLE. WELL, JUST TO SHAPE THAT. UM, AND IT IS, UH, THURSDAY, THE 17TH OF NOVEMBER, THAT IS THE MEETING TO SHAPE THAT. I WAS JUST GOING TO SUGGEST THAT IF THERE ARE ITEMS THAT ARE, THAT NEED A FULL DI THAT WE MIGHT BE ABLE TO EITHER PUSH THEM LATER OR BRING THEM SOONER. I'M NOT SUGGESTING THAT WE NOT HAVE THE MEETING AND I'LL TRY TO DIAL IN FOR PORTIONS AS I CAN AND I'M, I'M PRETTY SURE EVERYBODY ELSE FEELS THAT WAY, UH, SO I DON'T WANNA BE DISRUPTIVE. GOT IT. BUT WE MAY BE ABLE TO DO SOME AGENDA PLANNING, UH, IN ACKNOWLEDGEMENT OF THAT, OF THAT TRIP. GOT IT. MAYOR AND MY OFFICE TELLS ME THAT, UH, THE DATES FOR THE US CONFERENCE OF MAYORS WAS IN FACT TURNED OVER TO KATIE, SO I THINK IT'S ALREADY IN THERE. I'M ALSO GONNA BE GONE THAT WEEK TO THE NATIONAL ON NOVEMBER 17TH. YEAH, THANK YOU. ME AND THERE, I DUNNO IF THERE'S ANYBODY ELSE, BUT I KNOW OF US. YOU'RE TALKING ABOUT THIS NOVEMBER 17TH. THIS HERE. IT'S THE ONLY ONE I'M TALKING ABOUT. OKAY. SO I'M OUT, I'M ALSO OUTTA THE COUNTRY. I'M AT COP 27. YEAH, ON NOVEMBER 17TH. IF WE HAVE A, WHO ELSE IS? SO, LOOKS LIKE WE MIGHT HAVE LOTS OF PEOPLE ON THE GUYS WHO ARE NOT HERE, AT LEAST FOR MAYBE MORE IT TO THE PRESENT BOARD AND, OKAY. SO LET'S, LET'S START ON THAT. MAYOR, I WAS MAYOR. I WAS, UM, TRYING TO FIGURE OUT WHETHER, WHETHER TO ATTEND THE CONFERENCE OR NOT, DEPENDING ON WHETHER WE WERE HAVING A COUNCIL MEETING. UM, BUT I HAVE NOT MADE PLANS YET. OKAY. WE'LL POST SOMETHING TO THE MESSAGE BOARD TO TRY AND GET PEOPLE'S FEEL FOR THE 17TH, BUT IF EVERYBODY'S NOT HERE ON THE 17TH, LET'S FIND AN ALTERNATIVE FOR THAT. OR MANAGER, IF YOU COULD TAKE A LOOK AT WHAT'S ANTICIPATED TO SEE. WE ONLY HAVE TWO MEETINGS IN THE YEAR AFTER THE 17TH, SO I'M A LITTLE NERVOUS ABOUT JUST PULLING IT OFF. UH, BUT LET'S TAKE A LOOK. MAYBE THE LAST WEEK IN NOVEMBER, MAYBE WE HAVE JUST THREE MEETINGS IN A ROW SO THAT WE DON'T HAVE A 160 ITEM, UM, AGENDA. BUT WE'LL POST SOMETHING ON THE MESSAGE BOARD TO START THAT CONVERSATION. THANK YOU FOR THAT. UM, FURTHER DISCUSSION ON THE SCHEDULE. OKAY, SO LET'S MOVE OFF. YEAH, JUST, I'M SORRY, MARY, I DID HAVE ONE MORE THING TO SAY. GO AHEAD, KEN. UM, COUNCIL MEMBER, MAYOR, PRETEND MAYBE FIXING THIS, BUT, YOU KNOW, DURING OUR BUDGET CONVERSATIONS, WE HAD MULTIPLE CONVERSATIONS, SOMETIMES ON THE DIAS, SOMETIMES OFF THE DIAS, ABOUT REALLY THE NEED FOR MORE, FOR MORE WORK SESSIONS LEADING UP TO THAT. AND I, I THINK THAT IS ONE OF THE THINGS THAT MAYOR PARTEM IS ADDRESSING. BUT YOU KNOW, THIS IS NOT, YOU KNOW, SEVERAL OF US ARE LEAVING, SO THIS ISN'T REALLY OUR, OUR, UM, CONVERSATION TO HAVE PERHAPS. BUT I, I REALLY THINK THAT SOME OF THE WAYS WE'VE DONE IT IN PAST YEARS JUST WORKED BETTER WHEN WE HAD KIND OF A HALF DAY OR A FULL DAY WHERE WE COULD ASK QUESTIONS OF DIFFERENT DEPARTMENTS KIND OF EARLIER IN THE PROCESS. I THINK THAT REALLY HELPS. AND ESPECIALLY WITH, WITH A VERY NEW DIAS, I THINK IT'S GONNA BE REALLY CRITICAL. YOU KNOW, IF YOU LOOK AT SOME OF THE QUESTIONS, I MEAN, WE HAD MANY, MANY, MANY QUESTIONS IN THE BUDGET Q AND A, AND A LOT OF THOSE I THINK WOULD HAVE ARISEN NATURALLY IF WE HAD HAD THOSE PRESENTATIONS FROM DIFFERENT DEPARTMENTS, OR AT LEAST OPPORTUNITIES, PRESENTATIONS SUBMITTED IN ADVANCE AND OPPORTUNITIES TO ASK QUESTIONS, WHICH, YOU KNOW, WE'VE DONE IT DIFFERENT WAYS IN THE PAST. BUT, BUT IN ALL OF THOSE OPTIONS THAT AFFORDED AN OPPORTUNITY TO JUST FOCUS DEPARTMENT BY DEPARTMENT BY DEPARTMENT IN THOSE EARLY CONVERSATIONS AND THE BUDGET PROCESS. AND I THINK THAT'S VERY HELPFUL. AND ALSO, YOU KNOW, AGAIN, JUST HAVING, HAVING THOSE WORK SESSIONS WHERE WE'RE NOT ATTEMPTING TO MAKE DECISIONS BUT ARE LAYING OUT DIFFERENT IDEAS AND ACTUALLY DISCUSSING REALLY HELPS IN THE BUDGET PROCESS BECAUSE MANY OF THOSE IDEAS WE WOULD HAVE ALREADY DISCUSSED, WE WOULDN'T HAVE BEEN REALLY TALKING ABOUT THEM FOR THE FIRST TIME IN THE BUDGET ITSELF, ON THE BUDGET DAYS ITSELF. SOUNDS GOOD. WE'VE ASKED, UH, UH, ALLISON TO GO AHEAD AND, AND POST RO WITH STAFF, COME UP WITH HER THOUGHTS ON AMENDMENT, HOPEFULLY POST THEM TOMORROW. SO THERE'LL BE AN OPPORTUNITY IF THAT'S NOT ADDRESSED IN THAT KATHY, FOR, FOR YOU AND OTHERS TO COMMENT ON TOP OF THAT, LET'S SEE HOW MUCH OF THAT WE CAN DAYLIGHT TOMORROW SO THAT ON THURSDAY WE MIGHT ACTUALLY BE ABLE TO MOVE IT FORWARD RATHER THAN POSTPONING IT. ALL [82. NPA-2019-0022.02- 305 S. Congress PUD - Approve second reading of an ordinance amending Ordinance No. 20050929-Z001 the Greater South River City Combined Neighborhood Plan, an element of the Imagine Austin Comprehensive Plan, to change the land use designation on the future land use map (FLUM) on property locally known as 305 South Congress Avenue (Lady Bird Lake Watershed) from Industry to Mixed Use land use. First Reading approved Mixed Use land use on April 7, 2022. Vote: 10-0, Council Member Harper-Madison was off the dais. Owner/Applicant: Richard T. Suttle, Jr., Trustee. Agent: Armbrust & Brown, PLLC (Richard T. Suttle, Jr.). City Staff: ] RIGHT, LET'S MOVE ON THEN TO THE, TO THE NEXT POLL ITEM. I PULLED THE, UH, STATESMAN PUT, UH, ITEM, UH, I APPRECIATE, UH, THE WORK, UM, UH, COUNCIL MEMBER THAT, THAT YOU HAD. UH, OBVIOUSLY, UM, THE, THE, THE LAST THING OF RECORD IS WHAT WE APPROVED ON FIRST READING. UM, UH, WE HAVE IN NOW BACKUP, UM, A, A ITERATION OF, OF THAT. I DON'T KNOW IF YOU WANT TO REAL QUICKLY, COUNCIL [00:15:01] MAVE EXPLAIN WHAT WHAT THAT IS AND MY PURPOSE IN PULLING THIS ITEM WAS TO SEE IF OTHER PEOPLE WOULD BE BRINGING OTHER AMENDMENTS ON THURSDAY THAT THEY KNEW ABOUT, SO THAT WE COULD GET A FEEL FOR WHAT MIGHT BE HAPPENING ON, ON THURSDAY. MR. VELA? YES, MAYOR. WHAT WHAT WE HAD ASKED STAFF TO DO IS TO ESSENTIALLY DRAFT, UM, A RESOLUTION, UH, AN ORDINANCE THAT HAS THE CONSENSUS ITEMS, UH, WITH REGARD TO THE, UH, STATEMENT PUT THOSE THAT, THAT THE DEVELOPER HAS AGREED TO, THAT THE PLANNING COMMISSION HAS RECOMMENDED, OR THAT, UH, COUNCIL MEMBER TOBO, UH, UH, I BELIEVE HAS ASKED FOR, AND THAT THE DEVELOPER, UH, HAS, UH, AGREED TO THAT WAY WE HAVE KIND OF A, A CLEAN VERSION OR ONE A VERSION WHERE ALL THAT IS IN THAT VERSION. THERE IS NO OPPOSITION TO THOSE AND THAT WAY WE CAN THEN AMEND IT AS NEEDED AND THEN DEBATE THOSE AMENDMENTS. UM, AGAIN, IT'S JUST KIND OF A PATH FORWARD, UH, TO, UH, TO, TO HIGHLIGHT THE ISSUES THAT ARE IN CONFLICT OR THAT HAVE SOME CONCERNS AROUND THEM. AND MY INTENTION WAS TO OFFER THAT AS FOR SECOND READING, AND THEN WE CAN TAKE AMENDMENTS FROM THAT POINT. OKAY. I THINK THAT'S HELPFUL. THANK YOU. COLLEAGUES DID, BY WAY OF DISCLOSURE, I, UM, UM, AM TRYING TO TALK TO THE, TO THE APPLICANT ABOUT TWO THINGS. YOU ALL MAY BE TALKING ABOUT THE SAME THING. IF THERE'S A WAY FOR US TO GET A GREATER NUMBER OF AFFORDABLE HOUSING UNITS, UH, IN ADJACENT OR NEARLY ADJACENT PROPERTY, NEARBY PROPERTY AS PART OF THIS AND INCREASE THE NUMBER, THAT'S SOMETHING I WANT US TO EXPLORE AND, AND CONSIDER ASSOCIATED WITH THE, THE PUT APPROVAL. SO TO INCREASE THE NUMBER. UM, AND, UM, UM, I'VE ALSO, UM, UH, ASKED THE APPLICANT TO TAKE A LOOK AT THE PUT APPLICATION AND SEE IF THERE'S AN OPPORTUNITY FOR AN ADDITIONAL PAD SITE OR SOMETHING ON THE PROPERTY THAT WOULD OPEN UP THE OPPORTUNITY FOR, UH, ADDITIONAL, UH, BUILDING THAT WITH A DENSITY BONUS, UH, COULD DRIVE, UH, ADDITIONAL, UM, HOUSING, UH, AND AFFORDABLE HOUSING, UH, EITHER ON A SITE OR ADJACENT TO THE SITE. SO I'VE ASKED HIM TO THE APPLICANT TO TAKE A LOOK AT THOSE, THOSE TWO THINGS. IF I GET ANYTHING BACK ON THOSE, I'LL POST THOSE TO THE, TO THE MESSAGE BOARD. CATHERINE PAUL. THANKS MAYOR. AND YOU PROBABLY ALL KNOW THAT I'VE BEEN WORKING ON A MOTION REGARDING THE PARK DESIGN PROCESS AND A LIST OF AMENITIES THAT THE APPLICANT WILL BE FUNDING AT A HUNDRED PERCENT. I'VE BEEN WORKING, MY TEAM'S BEEN WORKING WITH THE APPLICANT AND WITH STAFF AND, UM, WITH A SUB TO TRY TO MAKE SURE THAT WE COVER THIS TERRITORY COMPLETELY. SO WE'LL BE PUTTING THAT UP ON THE MESSAGE BOARD PRETTY SOON. UH, BUT THE MOTION SHEET IS A PUBLIC PARK DESIGN PROCESS, UM, AND, AND, AND THEN IT JUST DESCRIBES WHAT THAT IS. SO WE'LL BE PUTTING THAT UP ONTO THE MESSAGE BOARD SO Y'ALL CAN HAVE A LOOK, SEE AT IT. AND, UM, I DON'T THINK I NEED TO READ IT RIGHT NOW HERE, BUT GREAT. UM, COUNCIL MEMBER VELA, I'D BE LOOKING FOR THAT TO BE INCLUDED AS A FRIENDLY AND THE BASE MOTION AT SOME, YOU KNOW, WHEN WE GET TO THAT. THANKS. AND, UM, I'VE ALSO BEEN, UH, LOOKING AT SOME OF THIS MAY END UP BEING PART OF COUNCIL MEMBER POOLS, BUT I'VE LOOKED AT TWO THINGS. ONE OF 'EM IS THE, UM, OUR, UM, COUNCIL MEMBER TOBO. I DON'T KNOW IF SHE'S ON THE LINE RIGHT NOW, BUT I'VE BEEN LOOKING AT THE ISSUE RELATED TO THE ACCESS YEAH. UH, ON THE LINE. OKAY. I'VE BEEN LOOKING AT THE ISSUE RELATED TO THE ACCESS FROM CONGRESS AVENUE BRIDGE DOWN TO THE TRAIL, AND IT LOOKS LIKE WE MAY HAVE SOME OPTIONS FOR THAT. SO, UM, WHICH IS ONE OF THE AREAS OF CONCERN FOR FOLKS, UH, AN OPTION FOR ACCESS THAT IN ADDITION TO GOING THROUGH THE CENTER OF ANY DEVELOPMENT WOULD BE RIGHT THERE, UH, NEXT TO CONGRESS AVENUE. SO WE'LL SEE IF THERE, IF THAT, UM, MATERIALIZES. AND THEN THE SECOND THING IS I MAY, I MAY HAVE SOME SUGGESTED LANGUAGE AROUND THE PARAMETERS ON THE MOVING THE TRAIL TO PUT SOME MORE, UM, CLARITY AROUND UNDERSTANDING WHAT, UH, THE PARAMETERS ARE. THERE AGAIN, THAT THE CONCERN HAS BEEN THAT RIGHT NOW WE HAVE SUCH A, UM, WE HAVE SUCH A BEAUTIFUL AREA FOR THE TRAIL WHERE IT GOES BECAUSE IT GOES DOWN THERE THROUGH THE, UM, THROUGH THE TREES AND IT'S A VERY, UM, YOU [00:20:01] KNOW, IT'S A VERY PLEASING AREA IN THE SENSE THAT YOU DON'T FEEL LIKE YOU'RE, YOU FEEL LIKE YOU'RE IN MORE IN NATURE. SO, UM, SO I, I THINK THIS IS AN AREA THAT THE STAFF OF COURSE HAS EXPRESSED CONCERNS ABOUT, UM, UH, BEING TOO CLOSE TO THE LAKE RIGHT NOW BECAUSE OF THE, UM, JUST VARIOUS IMPACTS ON THE LAKE. SO THAT'S IMPORTANT TO, TO ADDRESS, BUT AT THE SAME TIME, I THINK IT'S IMPORTANT TO SET SOME PARAMETERS AROUND WHAT THAT MOVING THAT TRAIL COULD LOOK LIKE. THIS IS NOT AN ISSUE FOR THE DEVELOPER, IT'S SOMETHING TO BE WORKED OUT WITH OUR STAFF. AND SO, UM, AND I THINK IT'D BE IMPORTANT FOR THE, THE, UH, PUBLIC TO UNDERSTAND WHAT THOSE PARAMETERS ARE INSTEAD OF JUST LEAVING IT, UH, UNSPECIFIED. SO THAT'S THE THE OTHER THING THAT I'M, UH, THINKING OF BRINGING AN AMENDMENT ON. OKAY, BILL. THANK YOU MARY. I ALSO BEEN IN CONVERSATION AND, AND LOOKING AT THE POSSIBILITY OF ADDING MORE AFFORDABLE UNITS THERE AT THE, AND ALSO JUST RIGHT NEXT TO IT, I'M KIND OF EXCITED ABOUT IT CUZ WE'D BE ABLE TO HAVE THESE, UH, 44 UNITS IMMEDIATELY AND NOT WAITING, AND I'D HAVE TO WAIT TILL THE END OF THE DEVELOPMENT. SO I'M ALSO ON BOARD ON THAT WITH HUMIRA AND I, I'M LOOKING AT THAT POSSIBILITY AND YEAH, THAT, THAT TRAIL THERE IS A, HAS A LOT OF POSSIBILITY AND POTENTIALLY MAKE IT IN IF WE GET IT DONE THE RIGHT WAY. UH, AS A, AS A BIKER MYSELF THAT I LOVE TO DRIVE MY BIKE AROUND THERE, UH, IT IS KIND OF DANGEROUS BECAUSE, UH, LOOSE GRA THAT'S ON THERE AND, UH, THE WAY THEY, UH, THE TRAIL DOES NARROW UP THERE IN THAT LOCATION AND IT'S VERY DIFFICULT FOR WALKERS AND BIKERS TO GET THROUGH THERE. WE ALWAYS HAPPEN TO BE LOOK LOOKING BACK TO SEE IF SOMEONE IS GONNA COME BY AND ON THEIR BIKE. SO, UH, I AGREE THAT WE, THERE'S A POSSIBILITY OF MAKE THIS INTO A WORLD CLASS TYPE PARK THERE, SO I'M REALLY EXCITED ABOUT IT. OKAY. ANYBODY ELSE HAVE ANY OTHER AMENDMENTS THAT THEY THOUGHT MIGHT BE, UH, PEOPLE THOUGHT THEY MIGHT BE BRING? YES, KATHY? YEAH. UM, I HAVE A, A FEW THINGS I WANTED TO DISCUSS. I THINK MY FIRST IS A QUESTION FOR COUNCIL MEMBER BELLA. SO, YOU KNOW, I THINK THE DEVELOPER HAS PROVIDED ALL OF US PROBABLY WITH A MATRIX SHOWING WHAT, WHAT, UM, OF, OF WHAT PASSED ON. WELL, JUST TO BACK, I THINK I'LL JUST BACKTRACK. YOU KNOW, THE PLANNING COMMISSION MADE SOME AMENDMENT, I MEAN THE DEVELOPER BROUGHT FORWARD THE PROPOSAL, THE PLANNING COMMISSION MADE SOME AMENDMENTS THAT ALSO EMBRACED SOME OF THE PARKS AND RECREATION BOARD AMENDMENTS, AND THEN WE MADE ADDITIONAL AMENDMENTS AND PASSED IT ON FIRST READING. SO YOU'VE BROUGHT FORWARD, UH, SUBSEQUENT SUBSEQUENTLY, THE DEVELOPER PROVIDED I THINK MOST OF OUR OFFICES WITH A LIST OF WHAT THEY WOULD AND WOULD NOT AGREE TO BASED ON WHAT WE PASSED AS A COUNCIL ON FIRST READING. AND NOW YOU'VE ASKED OUR STAFF TO PRODUCE AN ORDINANCE BASED ON WHAT THEY'VE AGREED TO. YOU KNOW, I DON'T, I DON'T KNOW WHAT THE BEST WAY IS TO, TO TACKLE THAT. UM, BECAUSE THERE ARE GOING TO BE POINTS THROUGHOUT, THROUGHOUT THAT, YOU KNOW, WHAT I THINK YOU WOULD LIKE TO SEE PRESENTED AS A SUBSTITUTE ORDINANCE. I THINK THERE ARE GONNA BE POINTS THROUGHOUT THAT, THAT WE NEED TO NOW DISCUSS BECAUSE THEY'RE DIFFERENT FROM WHAT SOMETIMES SUBSTANTIALLY DIFFERENT FROM WHAT WE PASSED ON FIRST READING. AND I WONDERED IF YOU HAD A LIST OF WHAT, WHAT YOU ARE BRINGING FORWARD, HOW THAT IS DIFFERENT FROM THEIR ORIGINAL PROPOSAL. FOR EXAMPLE, THE ONE, THE ISSUE THAT I'M MOST CONCERNED ABOUT AFFORDABLE HOUSING, WE PASSED ON FIRST OR ON FIRST READING THAT IT BE 10% ON SITE BECAUSE THAT IS WHAT, UH, IN, YOU KNOW, FOR A VARIETY OF REASONS, INCLUDING THAT THAT IS WHAT A PLANNED UNIT ORDINANCE, WHAT WHAT THE PUT ORDINANCE REQUIRES 10% ON SITE. AND SO I BELIEVE THE, THE ORDINANCE THAT YOU'RE BRINGING FORWARD ON THURSDAY SHIFTS THAT BACK TO 4%. SO THOSE ARE, YOU KNOW, SOME SUBSTANTIALLY DIFFERENT, THOSE ARE SUBSTANTIALLY DIFFERENT FROM WHAT WE PASSED ON FIRST READING AND WE'LL ABSOLUTELY REQUIRE A CONVERSATION. THEY'RE ALSO REALLY WHAT, WHAT THE APPLICANT BROUGHT FORWARD INITIALLY. SO, YOU KNOW, I, ONE OF THE THINGS I'M GONNA TRY TO ASSESS IS WHAT, UH, WHAT OF WHAT YOU'RE BRINGING FORWARD IS REALLY JUST A SHIFT BACK TO THE ORIGINAL PROPOSAL, BUT, SO THAT'S A QUESTION FOR YOU, BUT I'D ALSO LIKE TO JUST TALK ABOUT AFFORDABLE HOUSING AS OUR COUNCIL HERE FOR A FEW MINUTES. MAYOR, UM, THE APPLICANT I THINK IN OUR LAST PUBLIC CONVERSATION TALKED ABOUT THAT, THAT NEARBY SITE. UM, I KNOW WE'VE HAD CONVERSATIONS WITH THE APPLICANT ALONG WITH SOME OF OUR HOUSING ADVOCATES AND SOME OF OUR HOUSING DEVELOPERS IN TOWN. AND [00:25:01] I THINK THERE, YOU KNOW, IF I COULD SUMMARIZE THOSE, I THINK THERE'S A WILLINGNESS TO, TO LOOK AT THE POSSIBILITY OF HAVING THOSE UNITS BE OFFSITE. BUT, BUT I THINK, YOU KNOW, WHAT I CERTAINLY HEAR AND CERTAINLY BELIEVE IS THAT 4% IS STILL FAR LOWER THAN, THAN THE NUMBER THAT SHOULD BE REQUIRED. AGAIN, THE POD REQUIRES 10%. AND SO IF THOSE ARE SHIFTING, ESPECIALLY IF THOSE ARE SHIFTING OFF SITE, WE REALLY NEED TO GET UP TO THAT 10% NUMBER. AND I'D REALLY LIKE TO HEAR FROM MY COLLEAGUES, INCLUDING COUNCIL MEMBER BELLA, SINCE YOU'RE BRINGING FORWARD A VERY DIFFERENT PROPOSAL, I'D LIKE TO HEAR FROM YOU AND FROM OTHERS, YOU KNOW, WHERE, WHERE WE STAND, UM, IN TERMS OF THE NUMBER OF AFFORDABLE UNITS AND THE LEVEL OF AFFORDABILITY, WHAT COUNCIL MEMBER TO, I ORIGINALLY HAD A PROPOSAL TO USE THE, UH, MONEY THAT IN LIEU OF AFFORDABLE HOUSING ON SITE, I HAD A PROPOSAL, AGAIN, THIS IS GOING BACK MONTHS AT THIS POINT, BUT TO USE THAT, TO TAKE THE CASH VALUE OF THAT AFFORDABLE HOUSING AND USE IT, UH, FOR TO HOUSE, UH, THE HOMELESS. UM, SO I'M OPEN TO THE DISCUSSION ABOUT WHAT THE NUMBERS ARE, WHERE THE HOUSING SHOULD BE AND ALL THAT. HONESTLY, I DON'T HAVE REALLY STRONG VIEWS ABOUT, UH, THAT RIGHT NOW. I WILL SAY THAT WHAT WE PASSED ON FIRST READING WAS REALLY JUST A PLACEHOLDER. I MEAN, WE DID NOT DEBATE ANYTHING. WE DID NOT REALLY VET ANY OF THE AMENDMENTS. YOU KNOW, WE, WE HEARD THE PRESENTATION, YOU KNOW, WE WENT AHEAD AND, AND MOVED IT, YOU KNOW, UH, UH, PASSED IT ON FIRST READING WITH, YOU KNOW, THE PLANNING COMMISSION AMENDMENTS AND I BELIEVE WAS A, A HANDFUL OF YOUR AMENDMENTS. BUT AGAIN, I, I DIDN'T, THERE WAS REALLY NO DISCUSSION OR DEBATE ON THAT. AND, UH, I WOULD THINK OF IT AS A PLACEHOLDER. AGAIN, NOT SO DIFFERENT THAN, THAN WHAT I'M OFFERING FOR, FOR SECOND READING. THAT SAID, THE SECOND READING, THE, THE, THE DIFFERENCE WOULD BE IT'S REALLY JUST ADMINISTRATIVE. IT'S NOT, YOU KNOW, POLICY ORIENTED. I JUST WANT A CLEAN VERSION WHERE, LOOK, THIS VERSION, EVERYBODY CAN AGREE ON WHAT'S IN THIS VERSION AND THEN WE CAN TAKE AMENDMENTS FROM THERE, YOU KNOW, SHIFTING THIS UP OR SHIFTING THAT DOWN OR ADDING THIS REQUIREMENT OR TAKING OUT THAT REQUIREMENT. BUT I KIND OF WANTED TO START WITH A, A CLEAN VERSION SO WE KNOW WHERE ALL THE PARTIES, UH, WHERE THE CONSENSUS AREA AMONG ALL THE PARTIES IS AT. THANK YOU FOR THAT EXPLANATION. I THINK FOR ME, UM, YOU KNOW, THAT DOESN'T REPRESENT KIND OF THE CONSENSUS FOR WHERE I AM AND WHERE I THINK A LOT OF THE COMMUNITY IS WITH REGARD TO HOUSING. SO I APPRECIATE YOUR EXPLANATION ABOUT, YOU KNOW, THAT THAT'S STILL A CONSIDERATION FOR YOU, EVEN THOUGH YOU'RE BRINGING FORWARD THE 4%. I DO THINK THAT THAT'S, THAT, THAT'S PROBABLY THE BIGGEST CONVERSATION THAT WE HAVE, UM, TO HAVE HERE WITH REGARD TO THE STATESMEN IS WHAT, WHAT IS AN APPROPRIATE LEVEL OF AFFORDABLE HOUSING, EITHER ON THIS TRACK OR IN TERMS OF THE VALUE OF THOSE UNITS ON, ON THIS TRACK, IF THEY ARE TO SHIFT TO THAT NEARBY LOCATION, 4 22 ON THE LAKE OR, OR I THINK IS THE NAME OF IT. UM, AND THAT TO ME, THAT REALLY GETS TO A COUPLE, A COUPLE THINGS. ONE IS, YOU KNOW, HOW STRONGLY WE'RE GOING TO STAND BY THE PUT ORDINANCE AND TWO, UM, I'VE ASKED A QUESTION, I THINK IT'S ALREADY ANSWERED IN THE STAFF REPORT ABOUT, ABOUT WHAT THE STAFF ARE USING AS THE BASELINE FOR THE PUT ORDINANCE. YOU KNOW, THE, THE AFFORDABLE HOUSING IS CALCULATED BASED, BASED ON ENTITLEMENTS OVER THE BASELINE. I REALIZED RATHER RECENTLY THAT THE BASELINE FOR THIS ISN'T THEIR ACTUAL BASELINE. I BELIEVE THE STAFF, AND MAYBE THEY CAN CONFIRM THIS, I THINK THE STAFF IS USING AS A BASELINE, THE VISION PLAN, NOT THE ACTUAL ENTITLEMENTS, UM, THAT THIS PROPERTY CURRENTLY CURRENTLY ENJOYS. UM, BUT THAT'S, THAT'S SOMETHING THAT I THINK WE NEED TO CLARIFY WITH OUR STAFF. AND I, I'M SORRY BECAUSE I'M NOT YET IN THE ROOM THOUGH. I WILL BE HERE IN A MINUTE. I CAN'T SEE WHETHER OR NOT WE HAVE, UH, MR. RUSSEN HERE. WE DO. MR. RESTO, CAN YOU CLARIFY THAT QUESTION ABOUT THE BASELINE? SURE. COUNCIL MEMBER JERRY RUSSO, THE HOUSING PLAN DEPARTMENT, UM, THE, THE BASELINE IS A PART OF WHAT WE CALL TIER THREE FOR THE POD ORDINANCE, WHICH REQUIRES THE, UH, 10% OF THE BONUS AREA TO BE PROVIDED FOR AFFORDABLE HOUSING. UM, WE, UM, DID NOT USE THAT IN DETERMINING THE, UH, STAFF RECOMMENDATION FOR AFFORDABLE HOUSING FOR THE POD. INSTEAD, WE USED THE, UH, SOUTH CENTRAL VISION PLAN, WHICH IS CALLED FOR, UH, 4% ON THIS SITE. SO JERRY, SO WHAT YOU'RE SAYING IS THERE WAS NO CONSIDERATION OF WHERE THE BASELINE SHOULD BE. YOU JUST WENT TO THE, TO THE PERCENTAGE SPECIFIED IN THE VISION PLAN, EVEN THOUGH THE VISION PLAN IS, IS FRANKLY DIFFERENT FROM THE ENTITLEMENTS THAT THEY'RE REQUESTING, THEY RE [00:30:02] CAN YOU, COULD YOU FACTOR FOR US BY THURSDAY WHAT, WHAT THE AFFORDABLE HOUSING PROVISIONS WOULD LOOK LIKE IF YOU USE THEIR EXISTING ZONING AS THEIR BASELINE AND CALCULATED, CALCULATED, UM, BASED UPON THE, UM, THE PROPOSED SQUARE FOOTAGE IS THAT THEY'RE PROPOSING RIGHT NOW? MAYOR, WE, WE'LL, UH, WE'LL TAKE A LOOK AND TRY AND DETERMINE THAT NUMBER. OKAY, GREAT. THANK YOU. THANKS VERY MUCH. SO I GUESS, YOU KNOW, MAYOR AGAIN, I THINK, UH, PROBABLY JERRY COULD YOU STATE THAT FOR ONE SECOND? CAUSE I HAVE A FOLLOW UP QUESTION. OH, GO AHEAD KATHY. BECAUSE IT'S THE AREA WHERE, WHERE THERE IS THE MOST DISCREPANCY BETWEEN, BETWEEN WHAT THE ORIGINAL PROPOSAL IS AND YOU KNOW, WHAT THE, WHAT THE ORDINANCE WE PASSED ON FIRST READING WOULD REQUIRE IN TERMS OF THAT 10%. SO I'D BE INTERESTED IF, IF ANY OF MY COLLEAGUES WANNA CHIME IN ON, ON THE AMOUNT OF AFFORDABLE HOUSING, I THINK THAT WOULD BE REALLY HELPFUL FOR ME ON THIS. I THINK I NEED A LITTLE BIT MORE DIRECTION AND UNDERSTANDING, AND I THINK THAT IT TAKES ME BACK TO, TO, TO STAFF. I WANNA MAKE SURE THAT WE GET AS MUCH AFFORDABLE HOUSING AS WE CAN, AS WE CAN GET, AND THAT WE'RE USING KIND OF THE, THE TOOLS AND LEVERS AVAILABLE TO US. UM, BUT MAKING SURE THAT, THAT WE'RE USING THEM A WAY THAT ACTUALLY DRIVES WHAT WE, WHAT WE WANT TO ACHIEVE. I WANNA MAKE SURE WE'RE NOT ASKING FOR SO MUCH THAT WE JUST DON'T GET ANYTHING. AND I THINK THAT THE, THE LESSON TO BE LEARNED FROM, FROM RAINY STREET IS INSTRUCTIVE FOR THE CITY. SO A COUPLE REALLY QUICK QUESTIONS. UH, JERRY, THE, THE, THE 10%, WAS THAT IN THE PUT, IS THAT A REQUIREMENT FOR EACH TRACK OR WAS THAT 10% ACROSS THE, THE SOUTH CENTER WATERFRONT? IT, WELL, THE, UH, THE 10% COMES FROM THE EXISTING PUT ORDINANCE, WHICH REQUIRES YOU ESTABLISH A BASELINE, WHICH IS THE EXISTING ZONING GIVES YOU A CERTAIN AR IN A CERTAIN HEIGHT. IT SAYS 10% OF THE BONUS AREA ABOVE THAT IS REQUIRED TO BE AFFORDABLE HOUSING. UM, INSTEAD WHAT WE USED WAS A SOUTH CENTRAL PLAN. AND, UH, TO, TO KIND OF GO BACK FOR A MOMENT, IF YOU LOOK AT THE, UH, UPS REPORT, THE REPORT THAT WAS DONE BY DARREN SMITH, IT COMPARES WHAT, UM, THE AMENDMENT, THE PASS ON FIRST READING AND THE COST OF THAT IS, UM, VERSUS WHAT'S PROPOSED WITH THE, UH, STAFF RECOMMENDATION, THE APPLICANTS REQUEST. OKAY. IS IT, I, I DON'T KNOW WHETHER TODAY IS APPROPRIATE OR THURSDAY IS APPROPRIATE, BUT I WOULD LIKE TO HAVE HAVE A PRESENTATION SO WE CAN DISCUSS THAT REPORT. SO THAT WAS THE REPORT THAT LOOKED AT, UM, YOU KNOW, WE HAVE OF COURSE THE DEVELOPER SAYING WHAT, WHAT THE PROJECT WILL THROW OFF OR NOT THROW OFF OR ENABLE THEM TO DO. OBVIOUSLY THEY'RE AN INTERESTED PARTICIPANT IN THIS PROCESS. SO WE COME TO STAFF TO SAY, TELL US FROM A STAFF PERSPECTIVE OR A THIRD PARTY OR INDEPENDENT ANALYSIS, WHAT CAN WE ASK FOR THAT IS ACTUALLY, UH, ACHIEVABLE. UH, AND MY RECOLLECTION IS, IS THAT THAT REPORT THAT CAME BACK INDICATED THAT IF WE GOT, IF WE ASKED FOR EVERYTHING THAT WE WANTED, UH, THE PROJECT WASN'T FEASIBLE AND COULDN'T BE BUILT. IS THAT CORRECT? YES, THE, THE, UH, MAYOR, THE, THE FIRST PART OF THE REPORT, WHICH, UH, UM, WE HAD A BRIEFING ON LIKE, I THINK IT'S BEEN SEVERAL MONTHS NOW, UM, PRICED OUT THE COST OF THE AMENDMENTS THAT THE APPLICANT, UM, THE PAST AND FIRST READING THAT THE APPLICANT WAS NOT AGREEABLE TO. SO COMPARED WHAT THE, THE, UM, ADDITIONAL DOLLAR VALUE OF THOSE WOULD BE. UM, WE TALKED ABOUT A SECOND PHASE BEING COMPLETED IN SEPTEMBER. UM, THAT WORK HAS BEEN COMPLETED RIGHT NOW, ACTUALLY IT'S BEING REFINED AS OF THIS MORNING SOMEWHAT. AND, UM, OUR PLAN RIGHT NOW IS TO, UM, UPLOAD THAT TO THE BACKUP FOR THURSDAY. UM, SO YOU'LL HAVE THE, THE PHASE TWO, A POWERPOINT OF WHAT WE'VE BEEN CALLING THE PHASE TWO OF THE STUDY, WHICH IS LOOK AT NOT JUST THE INDIVIDUAL COST OF THE AMENDMENTS THAT, THAT THEY DON'T AGREE TO. SO YOU CAN KNOW, WELL, IF WE KEEP THAT AMENDMENT, THIS IS HOW MUCH THAT THE, UM, COST WOULD BE TO THE APPLICANT. UM, BUT WE'VE NOW COMPLETED THE, OR EPS HAS COMPLETED THE OVERALL ANALYSIS OF THE PROJECT AS A WHOLE, WHICH IS WHAT WE'VE BEEN TALKING ABOUT. AND SO THAT WILL BE UPLOADED THE BACKUP AS SOON AS IT'S DONE PROBABLY TOMORROW, I IMAGINE, UM, OR LATER TODAY. AND WE'LL ALSO HAVE DARREN SMITH, UM, HERE ON THURSDAY, OR I'M SORRY, AND VIRTUALLY ON THURSDAY TO WALK THROUGH THAT POWERPOINT. IF THE COUNCIL DESIRES, THAT'D BE HELPFUL. AND THAT WOULD BE SOMETHING THAT I THINK I'LL CALL UP PRETTY EARLY IN THE CONVERSATION JUST SO THAT WE HAVE THAT INFORMATION AVAILABLE TO US AND SO THAT THE PUBLIC CAN, CAN SEE IT. UM, UH, YOU KNOW, AS AN ASIDE, I THINK ONE OF THE REASONS THAT WE WERE TAKING A LOOK AT THE SOUTH CENTRAL WATER FUND PLAN KIND OF GLOBALLY IN TERMS OF WHAT WE SHOULD BE ALLOWING IN TERMS OF DENSITY, BONUSES AND THE LIKE, WAS IN PART TO HELP US DRIVE THROUGH THE WHOLE DISTRICT, UM, CHANGE THE ECONOMICS SUCH THAT WE CAN ACTUALLY ACHIEVE MORE BECAUSE [00:35:01] WE'RE PUTTING PROPERTY OWNERS IN A POSITION WHERE THEY CAN DO MORE AND THEREFORE SUBSIDIZE MORE. SO THAT WILL BE HELPFUL, UH, IN ANALYZING. SO KATHY, TO YOUR QUESTION AS YOU ASK, I WANT TO GET AS MUCH AS WE CAN GET. I DON'T KNOW WHETHER 10% OR 20% OR 4% IS THE RIGHT NUMBER. UM, UH, THE INDICATIONS FROM STAFF AND THE INITIAL WORK WAS THAT 10%, UM, UH, MADE THE PROJECT, UH, INFEASIBLE, UH, IN WHICH CASE IT'S NOT SOMETHING THAT I WOULD SUPPORT. UH, BUT I THINK, UH, HAVING THAT CONVERSATION ABOUT WHAT WE CAN, NOT WHAT WE WANT, NOT WHAT WE WOULD DESIRE, NOT WHAT WE WOULD, WE COULD ASK FOR, BUT, BUT WHAT IN FACT IS SOMETHING THAT IS, UH, ACHIEVABLE USING THE TOOLS AVAILABLE TO US SO THAT THE CONVERSATION ABOUT WHAT PERCENT IS GROUNDED IN SOMETHING, UM, OTHER THAN JUST WHAT WE'D LIKE TO, TO SEE. AND, UM, JUST A COUPLE OF THOUGHTS ON THIS. UM, I KNOW THAT THE AFFORDABLE HOUSING PIECE IS IMPORTANT TO ALL OF US, AND SO IT'S GONNA TAKE A A LOT, YOU KNOW, IT'S GONNA TAKE A LONGER CONVERSATION. UM, SO, UH, UH, COUNCIL MEMBER OCCURS TO ME THAT WHEN WE'RE TALKING ABOUT WORKING OFF ON A BASE THAT'S AGREED TO, THE AFFORDABLE HOUSING IS NOT AGREED TO. SO I I'M VERY RELUCTANT TO, IT WOULD BE DIFFICULT FOR ME TO VOTE FOR SOMETHING THAT HAD 4% IN IT SEEMS TO ME IT'D BE BETTER TO CREATE A PLACEHOLDER FOR THE AFFORDABLE HOUSING IF, IF IT'S, IF IT'S SOMETHING WE DON'T FIGURE OUT BY THURSDAY OR PUT THE RANGE IN THERE. BUT I THINK IF, IF YOU'RE, I APPRECIATE THE EFFORT THAT YOU'RE TRYING TO MOVE FORWARD SOMETHING THAT WE'VE AGREED TO, I THINK THAT'S HELPFUL FOR ALL OF US, BUT ONLY IF IT'S SOMETHING WE'VE AGREED TO. OTHERWISE, YOU'RE JUST, YOU'RE JUST BRINGING FORWARD SOMETHING THAT IS DECIDING AN IMPORTANT ISSUE, WHICH, UM, YOU KNOW, I I, I CANNOT GO FORWARD WITH 4% AT THIS POINT IN TIME. YOU KNOW, I'M O OPEN TO LISTENING TO WHAT ALL OF THE POSSIBILITIES ARE, BUT SO I WOULD ASK YOU WITH SOMETHING YOU'RE ASKING US TO BRING FORWARD ON SECOND READING TO JUST FLAG THOSE THINGS THAT AREN'T AGREED TO, OR EITHER WITH A PLACEHOLDER OR WITH A BLANK OR WHATEVER. BUT I THINK THAT WOULD BE MORE APPROPRIATE TO ACCOMPLISH WHAT YOU'RE TRYING TO ACCOMPLISH. AND I I I APPRECIATE THAT. UH, COUNCIL MEMBER KITCHEN AND, AND I MISSPOKE EARLIER. SO THIS IS STAFF RECOMMENDATION PLUS PLANNING COMMISSION, UH, UH, RECOMMENDATIONS THAT WERE AGREED TO BY THE DEVELOPER PLUS COUNCIL MEMBER TO VOTE'S RECOMMENDATIONS THAT WERE AGREED TO BY THE DEVELOPER. THAT IS THE, THE SKELETON, UH, ON THERE. AND, AND I FULLY, I WILL, I WILL GO THROUGH AND, AND AND UH, TRY TO FLAG ALL OF THOSE ISSUES WHERE WE'VE HAD DISCUSSION WHEN THERE, WHERE THERE IS DISAGREEMENT TO, TO MAKE SURE AND, AND ALERT FOLKS TO IT. BUT I, FOR EXAMPLE, I FULLY EXPECT THERE TO BE A ROBUST DEBATE WITH REGARD TO THE AFFORDABILITY LEVELS. I KNOW NOT HERE TODAY, BUT I KNOW SHE HAS AN AMENDMENT WITH REGARD TO THE HOTEL. UH, I KNOW THAT THERE ARE SOME, UH, PROVISIONS WITH REGARD TO THE, UH, ONSITE MONITORING ALSO THAT UNDER THE DEVELOPERS IN DISCUSSION, UH, WITH, SO I, I, THERE'S A BUNCH OF INFLUX AND I, MY NO MEANS WHATSOEVER WOULD EXPECT THIS TO BE A FINAL VERSION. I WAS JUST TRYING TO GET KIND OF AS CLEAN OF A VERSION AS POSSIBLE, UH, AND, AND USE THAT AS, AS A, A BASELINE. I THINK I APPRECIATE, COULD I RESPOND PLEASE? I WANTED TO EXPLAIN PROCEDURALLY YOU'LL NEVER BE ASKED TO MAKE A VOTE ON 4%. UH, IF IT, IF THAT'S HOW IT'S THE BASE MOTION. I JUST WANNA MAKE SURE YOU UNDERSTOOD THAT. OKAY. CUZ BECAUSE WHAT I, WHAT HE'S GOT IS A 4% AND IF WE'RE BEING ASKED TO VOTE ON THAT, BUT YOU'RE NOT BEING ASKED AS I UNDERSTAND IT, WHAT YOU'RE TALKING ABOUT IS OFFERING A BASE MOTION THAT HAS, THAT IS JUST ARBITRARILY DEFINED AS BEING THOSE THINGS THAT THE APPLICANT AGREES TO THAT WERE PLANNING COMMISSION RECOMMENDATIONS AND WERE THINGS THAT COUNCIL MEMBER TOVO HAD. THERE ARE LOTS OF OTHER PROVISIONS IN THERE THAT ARE THINGS THAT I DON'T BELIEVE HAVE, YOU KNOW, MAJORITY SUPPORT OR POTENTIALLY DON'T HAVE MAJORITY SUPPORT ON THE COUNCIL. I THINK THE FIRST THING WE DISCUSS CONSISTENT WITH WHAT KATHY SAID IS THE AFFORDABLE HOUSING ELEMENT. CAUSE I THINK THAT TURNS THINGS, BUT THERE BE NO VOTE ON THAT. THE FIRST VOTE WILL PROBABLY BE ON THE AFFORDABLE HOUSING SECTION. OKAY. AND IT'LL BE TO SAY, OKAY, WHAT IS IT THAT WE WANT TO PUT IN THE AFFORDABLE HOUSING SECTION? WE HAVE TO PUT THAT INTO SOMETHING. AND, AND THE SUGGESTION THAT IF WE USE THAT BASE MOTION, THERE MIGHT BE 20 THINGS THAT WE DON'T HAVE TO DEBATE BECAUSE THEY WERE IN FACT PROPOSED BY PLANNING COMMISSION OR PROPOSED BY KATHY AND WERE AGREED TO. IT'S JUST A WAY TO GET US PAST THE [00:40:01] THINGS WE DON'T HAVE TO TALK ABOUT WITHOUT LIMITATION AT ALL ON THE THINGS WE DO NEED TO TALK ABOUT. SO IF IT WOULD BE MY INTENT FROM, BASED ON WHAT I'VE HEARD, CAUSE THAT HAS VALUE TO ME TO TO, TO HAVE THAT BE A BASE MOTION CUZ THAT OBVIS US HAVING TO TALK ABOUT SOME THINGS. BUT I AM REAL COMFORTABLE THAT IMMEDIATELY GOING TO KATHY AND, AND HAVING KATHY BEING ABLE TO MAKE, UH, AN AMENDMENT FOR DISCUSSION ON, ON, ON AFFORDABLE HOUSING. SO THAT THAT'S THE FIRST CONVERSATION WE HAVE. AND THERE'LL BE A VOTE THEN ON AFFORDABLE HOUSING AMENDMENT. AND THAT WOULD BE THE FIRST DISCUSSION AND VOTE WE WOULD HAVE ABOUT, UH, SUBJECT MATTER, UM, MAYOR. BUT TO BE CLEAR, I MEAN, WE HAVE AN ORDINANCE IN OUR BACKUP THAT REFLECTS WHAT WE VOTED ON ON FIRST READING THAT WERE IMPORTANT ELEMENTS EITHER TO COUNCIL MEMBERS OR TO THE PLANNING COMMISSION OR TO THE PARK SPORT. SO, I MEAN, WE, WE HAVE, I THINK WE SHOULDN'T OVERLOOK THE FACT THAT WE HAVE TWO VERY DIFFERENT ORDINANCES IN THE BACKUP. ONE REFLECTS KIND OF MORE ALONG THE LINES OF WHAT THE DEVELOPER BROUGHT FORWARD INITIALLY. THAT'S THE ONE THAT YOU'RE BRINGING FORWARD, COUNCIL MEMBER OF LA I THINK THERE MAY BE SOME VARIANCES FROM WHAT THEY BROUGHT FORWARD ORIGINALLY BECAUSE THEY'VE NOW AGREED TO A COUPLE ELEMENTS. I'M NOT SURE EXACTLY HOW MANY FROM THE ORIGINAL PROPOSAL. AND THEN WE HAVE THE ORDINANCE THAT REFLECTS WHAT WE VOTED ON, WHICH WE MAY NOT HAVE HAD MUCH DISCUSSION ABOUT AT THE DIAS, BUT WE CERTAINLY HAVE HAD LOTS OF CONVERSATIONS ABOUT EITHER IN THE COMMUNITY OR IN OUR SUBRU, INCLUDING WITH THE DEVELOPERS. SO I MEAN, WE, THERE ARE TWO VERY DISTINCT PATHS. I'M NOT, THERE'S, THERE'S NO, I JUST WANNA BE REALLY CLEAR, WE HAVE TWO VERY DIFFERENT ORDINANCES. UM, AND WE COULD PROCEED WITH EITHER ONE. IT, IT SEEMS TO BE, I DON'T, I DON'T KNOW THAT IT MATTERS TOO MUCH WHICH ONE WE START WITH BECAUSE THEY'RE GONNA BE THE SAME ELEMENTS OF CONVERSATION. I JUST DON'T WANNA TALK ABOUT IT IN A WAY THAT SUGGESTS THE STAFF DIDN'T, DIDN'T DO WHAT WE HAD ASKED THEM TO DO, WHICH WAS TO CREATE AN ORDINANCE REFLECTIVE OF OUR VOTE. NO, NO. AND, AND I AGREE WITH THAT. IF WE TOOK WHAT WAS ON FIRST READING, WE COULD GO THROUGH 20 QUICK OR 20 OR 25 QUICK AMENDMENTS, UH, THAT ARE IN AGREEMENT, THAT WERE THINGS THAT WERE PLANNING COMMISSION VOTED ON, THAT WE ALL APPROVE THINGS THAT YOU PROPOSED, THAT WE ALL APPROVE. WE COULD DO THOSE 20 BEFORE WE GOT TO ANYTHING CONTROVERSIAL, AT WHICH POINT WE WOULD HAVE SOMETHING VERY SIMILAR IN FRONT OF US TO WHAT IT IS THAT, UM, UM, UH, GTO HAS PROPOSED. SO IT DOESN'T, IT DOESN'T OBVIATE OUR ABILITY. IT JUST A TIME SAVING MEASURE TO, TO NOT HAVE TO GO THROUGH THOSE 20, 25 VOTES FIRST, UH, IN A WAY THAT I THINK COULD ONE, TAKE TIME AND BE CONFUSING. UH, BUT I THINK YOU'RE ABSOLUTELY RIGHT, AT THE END OF THE DAY WILL BE AN EXACTLY THE SAME PLACE, UH, BECAUSE THERE'LL BE NOTHING THAT WE PUT IN THERE THAT WE DON'T WANT TO HAVE IN THERE. AND THERE WILL BE A VOTE ON EVERYTHING THAT ANYBODY WANTS TO VOTE ON, UH, ESPECIALLY INCLUDING THE AFFORDABLE HOUSING THING, WHICH IS I THINK WHERE WE SHOULD BEGIN. UH, ALLISON, SO A COUPLE THINGS HERE. UM, SO I'M STILL TRYING TO GET MY HEAD AROUND THIS PROCEDURE WHEN WE HAVE A NINE PERSON BIAS. UM, SO I'M NOT SURE ANYTHING GETS PASSED ON THURSDAY IF, IF SOMEBODY'S UNCOMFORTABLE. AND SO I JUST, AGAIN, I WILL GO BACK TO WHAT I SAID LAST COUNCIL MEETING IS I DON'T THINK WE SHOULD BE TAKING UP SOMETHING OF THIS MAGNITUDE WITHOUT A FULL DI UM, BUT WE CAN CERTAINLY HAVE THE CONVERSATIONS AND, AND SEE WHERE WE GET. UM, I AM UNCOMFORTABLE WITH THE NOTION THAT WE ARE TAKING WHAT THE DEVELOPER IS SAYING AS THE BASE, UM, ESPECIALLY WITH RESPECT TO AFFORDABLE HOUSING ON THIS. UM, YOU KNOW, ESPECIALLY WITHOUT A FULL DI IT BECOMES EVEN THAT MUCH HARDER TO, TO PASS SOMETHING DIFFERENT. AND, AND SO THIS IS REALLY STACKING THE DECK IN FAVOR OF WHAT THE DEVELOPER HAS AGREED TO IN WAYS THAT MAKE ME REALLY UNCOMFORTABLE ON A PROJECT THAT I HAVE NOT HEARD FROM ANYBODY IN FAVOR OF THE PROJECT. I'VE ONLY HEARD FROM PEOPLE WHO ARE, ARE AGAINST THE CONTOURS AND WANT CHANGES. SO, UM, I DON'T HAVE A SOLUTION, BUT I, I JUST WANNA THROW OUT THE REALITY OF WHAT, WHAT WE HAVE ON THURSDAY, UM, BECAUSE OF THE CHOICES THAT WERE MADE ON HOW TO, HOW TO PROCEED. SO I WANTED TO FLAG THAT. UM, I WANTED TO ASK STAFF IF WE COULD MAKE SURE THAT THE Q AND A FROM THE LAST FEW MEETINGS THAT RELATE TO THIS PROJECT GET CARRIED OVER INTO THIS Q AND A. I KNOW THERE WERE SOME REALLY IMPORTANT INFORMATION IN THERE, INCLUDING A CHART THAT COMPARED THE AFFORDABLE HOUSING BEING OFFERED IN THIS PROJECT VERSUS OTHER PROJECTS THAT WE'VE HAD THAT I THOUGHT WAS FAIRLY REVEALING, UM, IN THAT, AND, AND IT WOULD BE REALLY HELPFUL IF WE HAD THAT ALL TOGETHER. AND THEN SOMETHING THAT I WANTED TO, TO FLAG, AND THIS MAY BE INCLUDED IN COUNCIL MEMBER POOL'S MOTION, CUZ I KNOW THAT I RAISED IT WITH HER. UM, WHEN WE MADE THE CHANGES TO PARKLAND DEDICATION AND [00:45:01] ONLY WENT UP 10%, WE CUT WHAT WE EXPECT IN TERMS OF PL D FROM THE STATESMEN BY ALMOST A HALF. UM, IT'S MY UNDERSTANDING THAT THEIR $9 MILLION, UM, WAS CALCULATED BASED ON THE 20 PROPOSED 23, UM, PARKLAND DEDICATION. AND SO NOW FOR, FOR THE SIGNATURE PARKS AND THE PARKS THAT WE ARE ANTICIPATING, UM, WANTING TO DO, WHICH HAS BEEN FOR, FOR MANY, INCLUDING MYSELF, REALLY CRITICAL FOR THIS PROJECT. UM, IF WE ONLY GO BY THE CALCULATIONS, UM, WE WILL NOT, WE'LL BE GETTING ABOUT 5 MILLION INSTEAD OF THE THE 9 MILLION. AND SO I THINK IT'S VERY IMPORTANT, UM, THAT WE HOLD THEM TO THE PRIOR CALCULATION IN THAT REGARD. AND I HAVE NOT HAD OPPORTUNITY TO SPEAK WITH THEM. SO I DON'T KNOW THAT THEY'RE OBJECTING TO THAT PER SE. UM, BUT I DO WANNA FLAG FOLKS THAT THERE WERE REALLY VERY REAL CONSEQUENCES FOR THAT FOR, FOR THIS BIG PROJECT. UM, AND THEY WERE WILLING TO PAY THE 9,000,002 WEEKS AGO. AND SO, UM, JUST WANNA MAKE SURE THAT THAT IS IN THERE. UM, AND THEN, UM, I REMAIN CONFUSED ON HOW WE MOVE FORWARD WITH THIS WITHOUT A REGULATING PLAN AND WITHOUT A JUROR, UM, TO HAVE THAT AS THE CONTEXT. AND I, I DON'T HAVE A, I DON'T HAVE A SOLUTION FOR THAT. UM, BUT IT'S NOT CLEAR TO ME THAT THEY CAN DO EVEN WHAT THEY'VE SAID WITHOUT SOME KIND OF JURORS. IT'S NOT CLEAR TO ME WHETHER WE WANNA HAVE A JUROR. UM, AND THE CALCULATIONS, ALL SORTS OF CALCULATIONS ARE ALL INTERTWINED WITH THAT. AND SO TO ME IT IS SOMEWHAT CONFUSING AS TO HOW WE, HOW WE ARE ANTICIPATING PROCEEDING. EVEN IF WE AGREE THAT WE WANNA HAVE MORE DEVELOPMENT IN THAT AREA. UM, THOSE THINGS REMAIN, REMAIN OF CONCERN TO ME. THANK YOU. SO LET ME PROPOSE THIS, UH, BY PROCEDURE PICKING UP. I END ON SOMETHING THAT YOU SAID BECAUSE IT'S PURELY PROCEDURAL, IT DOESN'T HAVE A SUBSTANTIVE IMPACT. UH, UH, CHEETO, UH, I THINK THE THING TO DO, AND MY RECOMMENDATION TO YOU WOULD BE THAT IF YOU MAKE THAT MOTION SO THAT WE GET PAST THE 25 THINGS THAT NO ONE NEEDS TO DEBATE WITH HAVING, WITHOUT HAVING TO HAVE A VOTE ON EACH OF THOSE, PUT IN A BLANK WITH RESPECT TO THE AFFORDABLE HOUSING SECTION. SO EVEN ON WHAT IS BEFORE US, EVEN THOUGH WE HAVEN'T VOTED ON THAT SECTION, IT HAS A BLANK. UH, SO THAT IT THAT SO THAT IT HAS OR PUT IN 10% FOR ALL I CARE, UH, THE, THE EFFECT WILL BE EXACTLY THE SAME CUZ WE'LL CALL UP THAT SECTION FIRST AND EVERYBODY CAN MAKE AMENDMENTS TO THAT SECTION AND WE'LL VOTE ON THE VARIOUS AMENDMENTS TO THAT SECTION. BUT THAT CREATES, MAYBE IT WILL HELP WITH THE PERCEPTION THAT WE'RE DECIDING SOMETHING THAT WE HAVEN'T DECIDED YET. IS IT? I'M, I'M FINE WITH THAT. I, I THINK, I MEAN, JUST, I DON'T WANNA REPEAT MYSELF, BUT I THINK THE THINGS THAT EVERYBODY AGREES WITH ALREADY IN THE ORDINANCE THAT WE HAVEN'T BACK UP AND IF WE STARTED WITH THAT VERSION, THAT LIKELY, UH, ACCOMPLISHES THE SAME THINGS. BUT AGAIN, COUNCIL MEMBER, VE MAYBE YOU HAVE AN OPPORTUNITY TO KIND OF HIGHLIGHT WHAT, WHAT YOU ARE, WHAT ARE DIFFERENT FROM THE ORDINANCE THAT'S ALREADY, UM, THAT WAS IN THE ORIGINAL PROPOSAL, BUT I I I WOULD PREFER THAT WE STICK WITH THE ORDINANCE THAT WE PASSED THAT REFLECTS WHAT WE PASSED AND THEN GO THROUGH POINT BY POINT AND TALK ABOUT ANY CHANGES. I THINK IT'S REALLY IMPORTANT FOR THE PUBLIC TO KNOW THERE'S A LOT OF, A LOT OF ATTENTION ON THIS. PEOPLE CARE ABOUT THE PARKS, THEY CARE ABOUT THE, THE AFFORDABLE HOUSING. THOSE ARE THE POINTS OF CONVERSATION ANYWAY, REGARDLESS OF WHICH ORDINANCE. I, I JUST, OKAY, I'M GONNA, I THINK, I THINK OUR FOCUS SHOULD BE ON TRANSPARENCY AND, UM, I'M NOT SURE, I'M NOT SURE THAT THIS DIFFERENT PATH, UM, GETS US THERE. OKAY. TRANSPARENCY IS REAL IMPORTANT TO ME. IT DOES GET US TO EXACTLY THE SAME PLACE EITHER WAY. SAVE TIME, BUT LET ME SEE IF I CAN FIGURE OUT A WAY TO, TO HELP PRESENT THAT FOR THURSDAY'S MEETINGS SO THAT THAT IS SELF-EVIDENT AND, AND VERY CLEAR. UM, BUT I'LL, I'LL WORK ON THAT. ALLISON. THANK YOU MAYOR. I, I, I APPRECIATE, UM, THE INTENTION. I JUST DON'T UNDERSTAND WITH A DI OF NINE, WHEREVER YOU START, THERE'S A BIAS TOWARDS THAT BECAUSE IT WILL BE REALLY DIFFICULT TO GET SIX VOTES TO MOVE IT. AND SO IT'S JUST, I UNDERSTAND YOUR INTENTION AND I UNDERSTAND COUNCIL MEMBER VELAS INTENTION AND APPRECIATE, UM, THE WORK THAT'S INVOLVED IN THAT. UM, BUT IT, BUT I, IN PRACTICE, I'M NOT, I'M NOT SURE THAT IT WORKS THE WAY THAT THAT IS INTENDED. OKAY. UM, AND, AND, AND TO YOUR OTHER POINT, [00:50:01] UM, MAYOR PROAM, I'M NOT SURE WE CAN ACTUALLY TAKE A VOTE ON IT ON THAT DAY EITHER. UM, I KNOW THAT WE HAVE SOME PEOPLE THAT ARE GONE, COUNCIL MEMBER HARPER MADISON IS GONE, BUT HAS ASKED US TO SET A TIME CERTAIN WHEN THIS IS GOING TO COME UP SO THAT SHE CAN PARTICIPATE, UH, IN IT, UH, WHICH, UH, UH, IT'S MY INTENT TO ACCOMMODATE. UM, BUT, BUT, WE'LL, BUT WE'LL SEE. UH, THAT'LL BE THE, THE, THAT'LL BE THE, THE WILL OF THE COUNCIL. ANYBODY ELSE HAVE ANYTHING ON THE POD THAT WE SHOULD TALK ABOUT, UH, TO HELP US ON THURSDAY? STAFF? DO YOU HAVE ANYTHING, UH, FOR US ON THE POD THAT YOU THINK WOULD BE HELPFUL FOR US TO HEAR OR KNOW? UM, NO, JUST, UH, IF YOU KNOW WHAT TIME YOU WANT TO SET FOR TIME CERTAIN, PLEASE LET US KNOW AND WE'LL LET, UH, THE APPROPRIATE PEOPLE KNOW. OKAY. WE'LL GET TO, UH, THE, THE MANAGEMENT OF THE DAY IN THE MOMENT AFTER WE'VE GONE THROUGH A COUPLE OF THESE BRIEFINGS THAT MIGHT ALSO TELL US, GIVE US INFORMATION ABOUT THE DAY. ALL RIGHT. WE OKAY WITH, UH, MOVING FORWARD? [92. Approve a resolution relating to Council policies and directives to the City Manager for City-owned real estate, including requirements for construction projects, living wage, minority and women-owned business requirements and other Council priorities related to City-owned real estate and City-owned parking facilities; and recommendations for future use of same. (Part 1 of 2)] KATHY, DO YOU WANT TAKE FIVE MINUTES HERE AND JUST EXPLAIN, UH, ITEM NUMBER 92, NOT TO DISCUSS IT YET. WE'LL DISCUSS IT AT THE END OF BRIEFINGS, BUT I WANTED TO GIVE YOU A CHANCE TO INTRODUCE IT. UM, THANK YOU, MAYOR. YEAH, I APPRECIATE THAT. AND ONE OF THE REASONS WHY I PUT IT ON THIS AGENDA IS THAT I HOPE WE'LL HAVE AN OPPORTUNITY TO TALK ABOUT IT IN THE WORK SESSION TODAY AND OVER THE NEXT COUPLE WEEKS. AND OBVIOUSLY MOST OF YOU ARE NOT IN MY SUB QUORUM ON IT. UM, THIS IS AN ITEM THAT REALLY RESPONDS TO PRETTY MUCH ALL OF THE DIFFERENT KINDS OF REAL ESTATE DEALS THAT I'VE SEEN IN MY TIME ON COUNCIL. AND IT'S ATTEMPTING TO CARVE A PATH FORWARD THAT I THINK WILL, WILL HELP RESULT IN A REALLY CONSISTENT PROCESS. ONE THAT PROVIDES PREDICTABILITY FOR OUR PARTNERS, BUT ALSO PROVIDES PREDICTABILITY FOR THE COUNCIL. YOU KNOW, WE, AND I, I'LL, I'LL STOP IT THERE. UM, FOR THE MOST PART, EXCEPT TO SAY THAT FOR, FOR MOST OF THESE POINTS, I HAVE A RELEVANT EXAMPLE WHERE WE'VE STRUGGLED. UM, AND I THINK THAT, UH, AGAIN, I THINK WE'VE TALKED FOR A LONG WHILE ABOUT REAL ESTATE AND HOW WE WANTED TO HANDLE IT. AND SO I'M HOPING THAT THIS, THAT THIS IFFC IS REFLECTIVE OF THAT. WE'VE HAD MULTIPLE REALLY GENERAL RESOLUTIONS, SOME OF WHICH I'VE BROUGHT FORWARD IN THE PAST ABOUT HOW TO, HOW TO MANAGE OUR REAL ESTATE, HOW TO MAKE SURE IT'S AN INTERDEPARTMENT APPROACH, HOW TO MANAGE OUR, OUR REAL ESTATE IN A PORTFOLIO WAY, HOW TO WORK WITH PARTNERS, THE COUNTY, THE SCHOOL DISTRICT, AND I, I, I, I NOW SEE THAT WE JUST NEED REALLY A MORE DIRECTIVE APPROACH. I ALSO WANNA BE SURE THAT WE'VE GOT A VERY CLEAR PATH FORWARD IN TERMS OF WORKING WITH THE ECONOMIC DEVELOPMENT COR CORPORATION, AND THIS IS ATTEMPTING TO DO THAT AS WELL. SO THAT'S, THAT'S THE FRAMEWORK. UM, AND AGAIN, WHEN WE HAVE AN OPPORTUNITY TO DISCUSS IT, UM, I'D LIKE AN OPPORTUNITY TO KIND OF TALK ABOUT A FEW OF THE THINGS THAT WE'VE MADE DECISIONS ABOUT TOGETHER AND HOW IT RELATES TO SOME OF THE POINTS IN THE RESOLUTION. OKAY. THANK YOU. ALL RIGHT. WITHOUT THE, ANY, ANYTHING ELSE? I THINK WE SHOULD GO TO THE FIRST BRIEFING, UH, WHICH WILL BE THE BRIEFING ON, UM, HEALTH SOUTH MEWELL STAFF ARE COMING UP. CAN I JUST MENTION SOMETHING ABOUT THE RENAISSANCE MARKET? SO THIS IS ON OUR AGENDA FOR THURSDAY AS WELL. IT'S TO, TO WAVE ALL THE VENDOR FEES FOR AT LEAST THE NEXT YEAR. BUT I, I WOULD LIKE THE STAFF ON THURSDAY JUST TO AFFIRM WHAT I BELIEVE TO BE TRUE, WHICH IS THAT THIS IS GONNA BE ACCOMPANIED BY A RANGE OF OTHER PROVISIONS. I KNOW MY OFFICE, UM, FOR SEVERAL YEARS HAS IN, IN MULTIPLE PHASES, HAS, UH, TALKED WITH THE ARTISTS AT THE RENAISSANCE MARKET ON ABOUT THE NEED FOR IMPROVEMENTS. A LOT OF THAT HAPPENED, THE PANDEMIC HIT AND THE SITUATION HAS GOTTEN, UH, REALLY TO THE POINT WHERE THAT MARKET IS NOT VERY WELL UTILIZED AT ALL. UH, THE PROVISIONS THAT WE'RE BRINGING FORWARD, BOTH THE VENDOR FEE WAIVERS, BUT ALSO COUPLED IT'S REALLY GONNA BE COUPLED NEED TO BE COUPLED WITH AN AFFIRMATIVE MARKETING PLAN, MARKETING PLAN, AS WELL AS SOME OTHER, SOME OTHER COMMITMENTS THAT THE PARKS DEPARTMENT, I BELIEVE HAS, HAS A WILLINGNESS TO DO. BUT THE MANAGER, THAT IS SOMETHING I'D LIKE THEM TO JUST CONFIRM ON THURSDAY IF THEY COULD SPEND A FEW MINUTES AT THE DIAS, HOPEFULLY ON CONSENT, JUST LAYING OUT, YOU KNOW, WHAT THEIR PLAN IS FOR, FOR SUPPORTING THAT MARKET. AND, YOU KNOW, IT MAY BE, I MEAN, IT HAS BEEN A 50 YEAR OLD MARKET. IT HAS SERVED A REALLY AMAZING PURPOSE FOR THE YEARS IT'S BEEN ACTIVE. UH, THOSE ARTISANS LIKELY HAVE A LOT OF OTHER OPPORTUNITIES THESE DAYS WITH FARMER'S MARKETS AND OTHER THINGS. SO IT MAY BE THAT WE NEED TO CONSIDER OTHER NEW USES THERE, UH, ALONGSIDE THE UNIVERSITY. AND SO, YOU KNOW, MY HOPE IS, IS THAT AFTER THIS PUSH, UM, TO REALLY SUPPORT THE MARKET AND SEE IF IT CAN BE A VIBRANT, ACTIVE FORCE IN THAT SPACE, THAT IF THAT IS NOT SUCCESSFUL, THAT THE CITY WILL TURN TO UT AND SOME OF THE STUDENT GROUPS THERE AND LOOK TO HOW THAT SPACE CAN BE UTILIZED. BECAUSE RIGHT NOW IT'S BECAUSE WE HAVE NO ARTISTS SHOWING [00:55:01] UP. UM, IT'S NOT BEING WELL UTILIZED. THERE ARE SAFETY CONCERNS. IT'S AN AREA WHERE STUDENTS PASS THROUGH, FACULTY, PASS THROUGH, STAFF PASS THROUGH. AND WE NEED, WE NEED TO USE THAT CITY SPACE IN A WAY THAT'S HEALTHY AND PRODUCTIVE AND VIBRANT. AND IF, AND IF THE RENAISSANCE MARKET IS, IS NOT GOING TO BE THE RIGHT FIT THERE GOING FORWARD, THEN WE NEED A DIFFERENT, THEN WE NEED A DIFFERENT APPROACH. BUT IT, IT NEEDS TO BE, THERE NEEDS TO BE AN APPROACH. MAYOR, UH, YOU HAVE ANOTHER HOUSEKEEPER? YES, GO AHEAD. I, I WASN'T SURE IF SPENCER WAS GONNA RESPOND IT. OKAY. I JUST WANTED TO JUMP IN REALLY QUICK TO TELL YOU ABOUT MY ITEM 62, WHICH IS THE AUSTIN VETERANS ART FEST, AND I'M SPONSORING THE WAIVER OF FEES. WE'VE COVERED $1,800 OF IT, WE STILL NEED ABOUT $2,600. AND ON THURSDAY, I'M HOPING THAT OTHERS AROUND THE DIAS MIGHT BE ABLE TO ADD TO THE FUNDS THAT MY CO-SPONSORS AND I HAVE ALREADY DONE. MAYOR ADLER, COUNCIL MEMBERS, TOVO, RENTER, AND FUENTEZ. SO WE'VE COVERED 1800. WE NEED ABOUT ANOTHER $2,600. THANKS. THANK YOU, COLLEAGUES. WE HAVE TWO ITEMS THAT I'M GONNA RECOMMEND GET POSTPONED, UH, AS WELL. OH, SORRY. YOU WANT TO COMMENT ON YEAH. UH, COUNCILWOMAN POOL. YOU CAN COUNT ON ME TO COSPONSOR THAT. I, THE VETERANS ART FESTIVAL IS A WONDERFUL OPPORTUNITY, UM, RELATED TO THE ARTS AND SOMETHING THEY, THEY STARTED RELATIVELY RECENTLY, SO YES, I'M HAPPY TO CONTRIBUTE. THAT'S GREAT. JUST THANK YOU. THAT'S GREAT. JUST LET US KNOW HOW MUCH, OKAY. THANK YOU COLLEAGUES. WE HAVE TWO ITEMS THAT WERE, UH, TENANT, LANDLORD, TENANT ITEMS 39 AND 40. 39 WAS A NOTICE TO PROPOSED EVICTION. AND 40 IS THE RIGHT TO ORGANIZE SOME OF THE STAKEHOLDERS ARE DISCUSSING THIS ISSUE, AND I'M GOING TO MOVE TO POSTPONE THE NOTICE OF PROPOSED EVICTION TO OCTOBER 27TH AND THE RIGHT TO ORGANIZE ITEM NUMBER 40 TO OCTOBER 13TH. UH, YES. UM, THANK YOU COUNCIL. SO JUST TO CIRCLE BACK TO COUNCIL MEMBER POOL'S, UM, RESOLUTION, I WOULD LIKE TO ADD ONTO THAT AS A CO-SPONSOR, AND WE WOULD LIKE TO CONTRIBUTE $200. THAT'S GREAT. THANK YOU SO MUCH. YOU'RE WELCOME, ALLISON. UM, I JUST WANTED TO ASK IF THE CITY MANAGER CAN CLARIFY WHETHER WE WOULD BE USING, UM, FEE WAIVERS FROM THIS YEAR OR NEXT FISCAL YEAR. IF WE PASS, UM, FEE WAIVERS ON, ON THIS BUDGET. I WOULD, I'LL CONFIRM, BUT THIS YEAR, THIS FISCAL YEAR. OKAY. I WILL ALSO CONTRIBUTE, BUT I DON'T KNOW HOW MUCH. THANK YOU. OKAY. ALL RIGHT, MANAGER. WELL, LET'S GO TO THE HEALTH SOUTH BRIEFING. THANK [B3. Staff Briefing on the Negotiated Final Te1ms with Aspen Heights for the Redevelopment of 1215 Red River and 606 East 12th Streets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onduct a public hearing and consider an ordinance amending Ordinance No. 20220817-005 to set the Fiscal Year 2022-23 Power Supply Adjustments, Community Benefit Charges, and Regulato1y Charges for Austin Energy, and make conesponding amendments to the Austin Energy Fiscal Year 2022-23 operating budget in Ordinance No. 20220817-004.] IS ITEM NUMBER 71. IT IS AN ANNUAL, UH, ITEM THAT HAS COME BEFORE COUNCIL. UH, WE DID SUBMIT A MEMO, UH, TO THIS REGARD, UM, ON SEPTEMBER 21ST, UH, TALKING ABOUT THE ADJUSTMENT, UH, TO A'S POWER SUPPLY ADJUSTMENT RATE AND OTHER PASS THROUGH CHARGES FOR FISCAL YEAR 2023. UH, AND THEN WE DO HAVE A PRESENTATION THAT WAS, UH, DISTRIBUTED EARLY THIS MORNING, UH, THAT WE WILL HAVE OUR CFO MARKED NEBRASKA WALKED THROUGH. UH, OUR GENERAL MANAGER, JACKIE SERGEANT IS AVAILABLE, UH, BUT REMOTELY. AND SO JACKIE IS WITH US, UH, FOR ADDITIONAL QUESTIONS AND CONTEXT. I DON'T KNOW, UH, GENERAL MANAGER IF YOU WANTED TO SAY ANYTHING BEFORE I TURN IT OVER TO MARK. UH, BUT OTHERWISE I WILL TURN IT, UH, DIRECTLY TO MARK KY. I JUST WANNA THANK EVERYONE FOR THE OPPORTUNITY TO SHARE INFORMATION. UM, THIS IS IMPORTANT. MARK DOES HAVE A PRESENTATION THAT HE WILL WALK YOU THROUGH AND WE ARE BOTH HERE TO, UM, HELP ADDRESS ANY QUESTIONS YOU MAY HAVE. AND WITH THAT I ALTERNATE TO MARK. THANK YOU. AND MAYOR. MAYOR, YES. BEFORE MR. DOMBROSKI STARTS, I ALSO WANNA, JUST TO MAKE SURE EVERYBODY KNEW THAT WE DID GET THE OFFICIAL ASK FROM CCARE, WHICH IS THE COALITION OF, UM, UH, HOSPITALS AND, UH, OTHER ENTITIES THROUGH, UH, THEIR REPRESENTATIVE TRACS ASKING FOR A POSTPONEMENT OF THIS ITEM. SO THAT WILL ALSO BE A CONSIDERATION, UM, AND I'M GLAD THAT THE STAFF IS HERE TO MAKE THIS PRESENTATION. MORNING, MARION COUNSEL, MARK JIM BROSKI, THE CHIEF FINANCIAL OFFICER FOR AUSTIN ENERGY. UM, I HAVE BEEN ASKED TO COME AND, UH, GIVE YOU A, A BRIEFING ON THE POWER SUPPLY ADJUSTMENT, UM, AND UM, THE IMPACTS, UM, THAT CAUSED THE IN, UH, PRETTY SIGNIFICANT INCREASE IN OUR POWER SUPPLY ADJUSTMENT. SO I'VE PUT TOGETHER SOME MATERIALS FOR A YEAR. I'M HOPING THIS CAN BE A DISCUSSION. UM, I ALSO GOT SOME QUESTIONS FROM SOME OF THE COUNCIL MEMBERS IN ADVANCE, SO I'LL TRY TO ANSWER THOSE AS I GO ALONG WITH SOME, SOME, UM, DOCUMENTATION ON THAT HELPS SUPPORT THOSE, UH, ANSWERS FOR YOU. UM, THIS NEXT PAGE IS THIS CONTROL? IT, IT IS. OKAY. SO QUICKLY, UM, I HAVE A LOT OF MATERIALS. WE DON'T NEED TO SPEND IT IF YOU'RE NOT, UM, UH, INTERESTED IN SOME OF THE TOPICS THAT WE CAN MOVE QUICKLY, BUT I WAS GONNA COVER THE POWER SUPPLY ADJUSTMENT, REALLY, WHAT, WHAT IS IT? UM, AND HOW, HOW DO WE SET IT? UH, WHAT ARE THE PRIMARY FACTORS THAT REALLY DROVE THE, THE PSA INCREASE, UM, HOW WE CALCULATED IT BOTH LAST YEAR AND THIS YEAR, SO YOU CAN SEE THE DIFFERENCES. AND FINALLY, UM, SOME OPTIONS THAT COUNCIL COULD CONSIDER AND WHAT THE POTENTIAL IMPACTS ARE, AS WELL AS SOME THINGS THAT WE MIGHT EVALUATE IN THE FUTURE, UM, AS WE SET, UH, RATES, UM, FOR THE POWER SUPPLY ADJUSTMENT, UH, IN FUTURE YEARS. UM, THINGS ARE CHANGING IN THE ENERGY INDUSTRY, AS YOU KNOW, AND SO IT MIGHT BE TIME TO EVALUATE SOME OTHER OPTIONS. I THINK WE'RE GONNA WANT YOU TO GO THROUGH EACH ONE OF THOSE. OKAY, SURE. SO, UM, SO THE FIRST IS THE POWER SAW APPLY ADJUSTMENT. UM, THERE'S A TARIFF, UH, THAT IS, UM, UH, PASSED BY CITY COUNCIL EACH YEAR, AND THAT TARIFF REALLY DICTATES WHAT IS INCLUDED IN THE POWER SUPPLY ADJUSTMENT AND HOW WE CALCULATE IT AND WHEN IT'S CALCULATED. UM, AND SO YOU'LL REMEMBER, I, UH, WE SENT OUT A, UH, A MEMO TO YOU ABOUT, UH, ON, ON THE 21ST OF, OF SEPTEMBER THAT REALLY FOLLOWS ALONG THIS TARIFF AND HOW WE CALCULATE IT. AND WE'VE HAD THIS TARIFF, TARIFF IN PLACE, I BELIEVE, SINCE 2012 OR 13, AND THAT, THAT TIMEFRAME WHEN WE CHANGED THE STRUCTURE OF OUR RATES. UH, SO WE'VE BEEN FOLLOWING THIS PROCESS, UH, SINCE THAT TIME. [02:00:04] ONE OF THE THINGS, UH, YOU'LL SEE IN THERE, IT REALLY DICTATES WHAT ARE THE ELEMENTS OF THE POWER SUPPLY ADJUSTMENT. AND SO THE POWER SUPPLY ADJUSTMENT, YOU THINK OF IT, UH, WE HAVE WHAT WE CALL BASE RATES. AND BASE RATES ARE THE FIXED CHARGES THAT WE PAY. IT PAYS FOR THE POLLS, THE WIRES, THE TRANSFORMERS, THE SALARIES OF THE EMPLOYEES, OUR CUSTOMER SERVICE FOLKS. UH, AND IT'S FIXED. WHAT THAT MEANS IS IT DOESN'T VARY ON THE AMOUNT OF ENERGY THAT CUSTOMERS USE. UM, I EQUATE IT TO LIKE A CAR PAYMENT. UM, IT DOESN'T CHANGE DEPENDING ON THE NUMBER, NUMBER OF MILES YOU DRIVE, RIGHT? UM, AND THE POWER SUPPLY, UH, IS LIKE YOUR FUEL BILL FOR YOUR CAR, AND IT DOES VARY GREATLY DEPENDING ON HOW FAR YOU DRIVE EACH MONTH. SO, UH, THE POWER SUPPLY COVERS, UM, THE COST OF US BUYING ALL THE ENERGY FROM ERCOT TO SUPPLY OUR CUSTOMERS. UM, IT'S OFFSET WITH THE REVENUE WE GET FOR OUR OWN GENERATION, AND HAS SOME SLIDES SHOWING THAT, UM, THE NUMBERS THERE ON THAT, IT ALSO COVERS THE COST OF OUR POWER PURCHASE AGREEMENTS. SO THESE ARE FOR OUR, UH, RENEWABLE RESOURCES, WIND AND SOLAR THAT, UH, WE HAVE UNDER CONTRACT. UM, IT COVERS THE COST OF FUEL TO RUN OUR GENERATION. UM, IT IS OFFSET WITH, UH, GREEN CHOICE REVENUE. IT INCLUDES THE VALUE OF SOLAR. UM, AND, UM, A SIGNIFICANT CHANGE, UH, IN THIS LAST TWO YEARS IS THE OVER AND UNDER COLLECTION. AND SO I GET INTO A LITTLE ABOUT, UH, A LITTLE BIT MORE ABOUT WHY THAT IS SUCH A, UM, A HUGE COMPONENT OF THE PSA THESE LAST TWO YEARS. SO THIS IS BRIEFLY A TIMELINE. UH, WE HAVE, UH, WHAT WE CALL THE, THE, THE RATE YEAR FOR THE POWER SUPPLY. AND IT'S A LITTLE DIFFERENT THAN OUR PHYSICAL YEAR. IT STARTS ON NOVEMBER 1ST, AND YOU CAN SEE A YEAR AGO THAT WE SET THE, UH, POWER SUPPLY ON NOVEMBER 1ST, 2021. AND SOON AFTER WE START TO MONITOR THAT PSA AND WE REPORT BACK TO EACH QUARTER, UH, WHERE WE STAND ON A POWER SUPPLY ADJUSTMENT, UH, RELATIVE TO THAT BUDGET. AND WITHIN THE POWER SUPPLY ADJUSTMENT, IT STATES IF, UM, THE COLLECTION IS PLUS MINUS US 10%, UH, OF THE TOTAL POWER SUPPLY COST, THEN UH, WE SHOULD COME BACK TO COUNCIL AND ADJUST THAT, THAT PSA. AND IN FACT, IT DID DO THAT THIS YEAR, BUT IT REALLY DIDN'T DO IT UNTIL WE GOT THE RESULTS IN JULY. AND YOU'LL SEE A LITTLE BIT LATER WHY THAT HAPPENED. AND SO I KNOW THERE A QUESTION OF WHY, YOU KNOW, WHY IS THIS SUCH A BIG INCREASE AND WHY YOU ADJUST IT EARLIER? AND YOU'LL SEE HERE THAT THE CHANGES REALLY STARTED TO HAPPEN IN, IN MAY AND JUNE. AND BY JULY IT BECOME A SERIOUS PROBLEM. OF COURSE, WE WERE ALREADY IN THE PROCESS OF CHANGING THE PSA AT THAT POINT. AND SO, UH, SEPTEMBER 13TH IS WHEN, UH, WE ACTUALLY GET ALL OF THE DATA THAT, UH, THAT WE NEED THAT THE SET, UH, THE POWER SUPPLY. UM, SO WE, WE DID THAT, UH, ON THE 21ST. WE, UM, SENT YOU THE MEMO STATING THAT WE WOULD BE CHANGING IT. UM, AND OF COURSE, BECAUSE IT STARTS ON NOVEMBER 1ST, UH, I STILL DON'T HAVE THE ACTUAL RESULTS OF SEPTEMBER OR OCTOBER. SO WE DO A, A FORECAST FOR THOSE TWO MONTHS TO INCLUDE THE CHANGE THERE. AND OF COURSE, THE NEW POWER SUPPLY ADJUSTMENT YEAR BEGINS ON NOVEMBER 1ST, 2022. SO A LITTLE BIT ABOUT WHY THE, THE PSA INCREASED. AND SO AS YOU'LL REMEMBER FROM THE MEMO, UM, IT'S, IT'S QUITE QUICK. IT'S A LONG MEMO. UH, I'M GONNA SUMMARIZE SOME OF THE REASONS WHY THAT WE SAW. SO THE FIRST ONE, UH, NATURAL GAS PRICES REALLY INCREASED. AND IF YOU, UM, HISTORICALLY, THEY'VE, THEY'RE ABOUT ALMOST 300% HIGHER THAN THEY WERE TWO YEARS AGO. UM, AND THEY'VE DOUBLED SINCE A YEAR AGO. UH, WE'VE ALSO SEEN A LOT MORE, UH, TRANSMISSION CONGESTION. AND REALLY WHAT THIS IS, IS LIKE A TRAFFIC JAM ON THE ACOT, UH, GRID. AND SO, UM, ERCOT USES PRICING TO SEND SIGNALS, UM, THAT RELATE TO THAT TRANSMISSION CONGESTION. AND SO THAT ADDS TO THE COST OF THE POWER. UM, NEXT IS, UM, AFTER WINTER STORM MUY OBVIOUSLY, UM, ERCOT LOOKED AT A LOT OF ITS, ITS OPERATING PROCEDURES AND HOW WE BEHAVE IN THE MARKET. AND AS A RESULT, UM, THEY CHANGE SOME OF THE, THE RULES THAT, THAT WE FOLLOW. UM, AND WE HAVE A REPORT FROM AN INDEPENDENT MARKET MONITOR, UM, THAT STATES THAT THOSE RULES THAT THEY'VE PUT IN PLACE HAS COST ABOUT 1.5 BILLION, UM, IN THE FIRST EIGHT MONTHS OF 2022. AND SO, UM, OUR SHARE OF THE LOAD IS ABOUT 4%. SO OUR SHARE OF THAT 1.5, UH, BILLION DOLLARS, UH, IS, IS SIGNIFICANT. AND, UM, FINALLY, AS, AS I POINTED OUT EARLIER THAT WE HAVE THAT OVER AND UNDER RECOVERY, AND I HAVE SOME GRAPHS TO SHOW YOU THAT, SO AFTER WINTER STORE MUR, UH, WE, UH, GENERATED A SIGNIFICANT AMOUNT OF REVENUE AS ARA SELECT BECAUSE OUR [02:05:01] GENERATION WAS UP AND RUNNING DURING, UH, THE MAJORITY OF THE STORM. AND, UM, WE RETURNED, OR WE GAVE THAT REVENUE TO THE CUSTOMERS LAST YEAR ON NOVEMBER 1ST, AND WE SET THE RATE SO IT DROPPED IT SIGNIFICANTLY BELOW, UM, WHAT THE MARKET PRICE WAS. AND AS YOU'LL SEE HERE, BETWEEN MAY AND UM, UH, OCTOBER, WE EXPECT TO HAVE A SIGNIFICANT UNDER RECOVERY. AND SO NOT ONLY DO WE HAVE TO MAKE UP FOR THE HUNDRED, UM, MILLION DOLLARS AT, UH, POWER SUPPLY WAS DECREASED LAST YEAR, BUT WE HAVE TO THEN PASS ON THAT UNDER RECOVERY TO CUSTOMERS FOR NEXT YEAR. UM, IT'S A LOT OF MOVING PARTS AND HOPEFULLY SOME OF THE CHARTS AND GRAPHS I PUT TOGETHER FOR YOU THAT WILL HELP US ALL UNDERSTAND THAT A LITTLE BIT BETTER. SO, UM, THEN, SO HERE WE HAVE, UM, WELL, I MENTIONED EARLIER THAT, UH, THE PRICE OF NATURAL GAS AND, AND WHY DOES THAT MATTER SO MUCH IN ERCOT? UM, IN ERCOT, ABOUT 42% OF THE POWER, UH, PRODUCED COMES FROM NATURAL GAS COMBIN CYCLE, UM, TURBINES AND STEAM UNITS. AND SO IT REALLY SETS, UH, THE MARK FOR WHAT THE PRICE OF ELECTRICITY IS AN . AND THAT, THAT LINE THERE ALONG THE BOTTOM, THAT'S OUR, OUR HENRY HUB SETTLEMENT PRICE. AND THAT REALLY IS, UM, UH, KIND OF DICTATES WHAT THAT PRICE OF GAS WILL BE IN, IN TEXAS, UM, THAT WE BUY. AND SO YOU CAN SEE, UH, THE DRAMATIC INCREASE, UH, OF THAT. AND THAT'S WHY I MENTIONED EARLIER THAT, UH, THE AUGUST SETTLEMENT WAS ABOUT, UH, 288% HIGHER THAN IT WAS TWO YEARS AGO, AND A LITTLE OVER A HUNDRED PERCENT HIGHER THAN IT WAS A YEAR AGO. SO, UH, THE PRICE OF THE FUEL TO GENERATE ELECTRICITY HAS, UH, ALMOST DOUBLED IN TWO YEARS. SO THE PRICE OF ELECTRICITY HAS FOLLOWED ALONG WITH THAT. NEXT IS THE CONGESTION. AND SO CONGESTION, LIKE I I POINTED OUT, IT'S KINDA LIKE A HIGHWAY, RIGHT? SO WHEN YOU HAVE A TRAFFIC JAM, UM, THINGS GET BACKED UP. AND PART OF WHAT ERCOT DOES IS JUST AS THE PRICE OF ENERGY AND DIFFERENT PARTS OF THE ERCOT MARKET AS A RESULT OF THAT, UH, TRANSMISSION, WHAT WE EXPERIENCED IN NOVEMBER OF 2021, WE'VE GOT ABOUT 128 MILLION OF CONGESTION COST THAT WE INCURRED. AND THAT IS THREE TIMES THE AMOUNT WE NORMALLY SEE. UM, AND AS AN EXAMPLE, I GAVE YOU SOME, UH, ACTUAL CHARTS. SO IF YOU GO DOWN TO ERCOT WEBSITE, YOU'LL SEE THESE MAPS OF TEXAS THAT, THAT SHOW THE PRICES OF ENERGY, UH, WITHIN THE MARKET HERE. AND ON THIS CHART, YOU'LL SEE IF IT'S A DARK RED, THAT IS A VERY HIGH PRICE, AND IF IT'S A DARK BLUE, IT'S A VERY LOW PRICE. AND SO IN THE, THE, THE FIRST DIAGRAM THERE, YOU CAN SEE OUT IN WEST TEXAS WHERE YOU HAVE A LOT OF RENEWABLE ENERGY, UH, UM, HERE, THAT, UM, THOSE PRICES ARE REALLY HIGH. IT TELLS ME THAT, UM, THAT THAT RENEWABLE ENERGY, UM, ISN'T BEING PRODUCED OUT IN WEST TEXAS. NOW, THE GOOD THING ABOUT THAT IS YOU DON'T HAVE A LOT OF FOLKS THAT LIVE OUT THERE. UM, AND SO THE POPULATION'S LOW AND YOU CAN SEE THE REST OF THE STATE IS, IS BLUE. SO THEIR PRICES ARE, ARE FAIRLY MILD. BUT YOU CAN SEE THAT DR, THAT THE, THE HUGE DIFFERENCE BETWEEN PRICING THERE IN TEXAS, A LITTLE BIT LATER ON IN THE DAY, YOU CAN SEE WHERE, UM, UH, THAT CONGESTION KIND OF MOVES DOWN TO, UH, CLOSER TO THE VALLEY AREA THERE. UM, AND SO YOU SEE A LOT OF, UM, UH, WIND, UH, DOWN IN SOUTH TEXAS, UM, CAN'T GET OUT OF, UH, TO, TO THE LOAD ZONES, RIGHT? AND SO THEY DROP THE PRICE OF, UM, ENERGY WHERE, WHERE THAT, WHERE IT'S BEING PRODUCED, AND THEY RAISE IT WHERE IT'S NEEDED, UH, SUPPLY AND DEMAND. AND FINALLY, UH, LATER ON IN THE DAY, YOU CAN SEE THAT, UM, MOST OF THE STATE IS, UH, RED, MEANING REALLY HIGH PRICES. SO WE DON'T HAVE ENOUGH GENERATION THERE. SO THEY INCREASE THE PRICES THERE. AND UP IN THE PANHANDLE AREA THERE, YOU SEE, UM, WE HAVE A LOT OF PANHANDLE WIND UP THERE. UM, IT CAN'T GET TO MARKET. IT'S CONGESTED. AND SO YOU SEE A BIG DECREASE IN PRICES. UM, THIS ALSO PLAYS INTO OUR OWN PORTFOLIO BECAUSE IF OUR GENERATION RESOURCES, WE HAVE A LOT OF WIND AND SOLAR, IF IT'S ONE OF THE BLUE PARTS OF THE STATE, IT'S GETTING A VERY LOW PRICE WHILE WE'RE BUYING ENERGY FOR OUR CUSTOMERS HERE IN OUR LOAD ZONE, IF WE'RE IN THE RED, WE'RE PAYING A LOT. SO THERE'S THAT PRICE DIFFERENTIAL THAT IT'S OCCURRING. UM, WHEN WE DON'T HAVE ANY CONGESTION, YOU'LL SEE THE STATE IS ALL ONE COLOR, AND THAT'S WHERE WE HAVE A PERFECT HEDGE. SO WHAT WE'RE PRODUCING, UM, WHAT WE'RE BUYING AND WHAT WE'RE SELLING FOR IS AT THE SAME RATE AND THEY OFFSET EACH OTHER. I TALKED A LITTLE BIT ABOUT THE, THE, UM, THE OPERATIONAL RULES THAT HAVE BEEN PUT IN PLACE, [02:10:01] UM, IN ERCOT AFTER WINTER STORM UY, AND HOW THOSE ARE, UH, CONTRIBUTING TO THIS INCREASED COST WITHIN THE PSA. UM, I, I SAY IT EARLIER, IT'S ABOUT 1.5 BILLION FOR ERCOT FOR THE FIRST EIGHT MONTHS. AND SO OUR SHARES ABOUT 4% OF THAT, OR ABOUT 60 MILLION. AND SOME OF THE, THE RULES THAT REALLY, UM, UH, THAT HAPPENED, SO THE, THE FIRST WAS, UM, IN ORDER TO ENSURE THAT, UM, ERCOT COULD HAVE ENOUGH GENERATION ON HAND TO MEET, UH, SUPPLY, THEY'RE, UM, THEY'RE PUTTING MORE UNITS IN RESERVE AND SPINNING OR NON SPINNING RESERVE. AND SO THEY'RE, THEY'RE PAYING UNITS NOT NECESSARILY TO PRODUCE ENERGY, BUT TO BE ON STANDBY TO PRODUCE ENERGY. AND THEY GET PAID FOR THAT. AND THOSE GENERATORS GET PAID FOR THAT FROM WHAT, FROM, UM, FROM FEES THAT THEY CHARGE ALL OF THE FOLKS IN ERCOT. SO YOU INCREASE THE RESERVES, YOU INCREASE THE COST IN INCREASES, THE FEES BEING PASSED ON THROUGH ERCOT. SO THAT'S ONE COMPONENT. THE NEXT IS WHAT WE CALL R, OR RELIABILITY COMMITMENT UNIT. UM, AND SO, UM, GENERATORS NEED TO COME DOWN, UH, FOR VARIOUS REASONS THROUGH THE COURSE OF THE YEAR MAINTENANCE AND SUCH, WHEN ERCOT LOOKS AT HOW MUCH GENERATION THEY HAVE AND HOW MUCH DEMAND THEY'RE FORECASTING, IF THEY THINK YOU'RE GONNA BE SHORT ON GENERATION, THEY WILL CALL RCA UNIT. WHAT THAT MEANS IS THEY GO TO THAT OWNER OF THE UNIT AND SAYS, WE NEED YOU TO STAY ONLINE. AND AS A RESULT, SINCE THEY'RE BEING ASKED TO STAY ONLINE, THEY GET PAID TO STAY ONLINE. AND AGAIN, THOSE FEES THEN GET PASSED UPON ALL THE, UH, CUSTOMERS WITH AN ERCOT. SO PART OF THE INCREASE IN RESERVE IS CUZ WE HAVE MORE UNITS ONLINE AND LESS GOING DOWN, UH, NECESSARILY FOR MAINTENANCE. UM, THERE'S SOME CONSEQUENCES TO THAT, UM, YOU KNOW, UH, THAT, THAT, THAT WE MAY, MAY SEE IN THE FUTURE. BUT THAT'S HOW THEY'VE HANDLED THE, UM, UH, THE RESERVE REQUIREMENT. UM, AND THE LAST IS THEY'VE CHANGED HOW THEY LOOK AT, UM, THEIR, THEIR FORECASTING. AND SO THEY'RE LOOKING MORE ALONG THE LINES OF WHAT HAPPENS IF WE HAVE, UH, THEIR BASIS CASE, UH, SORT OF A WORST CASE SCENARIO IN TERMS OF LOAD OR DEMAND. AND, UH, WORST CASE SCENARIO IN TERMS OF AVAILABILITY OF SOLAR AND WIND. UH, SO WHEN THE WIND DOESN'T BLOW AND THE SUN DOESN'T SHINE, WE SEE LESS GENERATION FROM THOSE RENEWABLE RESOURCES. THAT IS MORE THE BASELINE. SO THAT MEANS MORE GENERATION UNITS HAVE TO BE ONLINE OR IN RESERVE. AND ALL OF THIS REALLY, UM, IS IMPACTING THE, THE, THE COSTS THAT WE'RE, WE'RE, WE'RE PAYING FOR POWER ON A REAL TIME BASIS. THE NEXT IS THE OVER AND UNDER COLLECTION. UM, AND SO, UM, THIS CHART SHOWS THAT WHEN WE SET THE RATES BACK IN, UH, UH, NOVEMBER 1ST, WE HAD A PRETTY SIGNIFICANT OVER COLLECTION OF ABOUT 83 MILLION, UM, ACTUALLY ABOUT 92, 2 MILLION GOING INTO NOVEMBER. AT THE END OF NOVEMBER, WE HAD RETURNED ABOUT $8 MILLION TO CUSTOMERS TO THE PSA. UM, AND OUR BALANCE WAS 83 MILLION. AND YOU CAN SEE HOW THAT TRENDS ALL THE WAY THROUGH TILL ABOUT, UM, APRIL THERE, UH, WHERE WE HAD STILL HAD 65 MILLION OF, OF OVER COLLECTION. AND, UH, WE HAD BEEN RETURNING THAT ON A, A GRADUAL BASIS TO OUR CUSTOMERS. AND THEN YOU CAN SEE IN MAY, UH, WHERE THINGS REALLY CHANGED, UM, IN A MONTH OF MAY, UH, WE, UH, UH, WE USED ABOUT $28 MILLION OF THAT, UM, COLLECTION OVER COLLECTION, UH, TO PAY THE, THE BILLS. AND SO THAT DRASTICALLY DECREASED IT. THEN YOU CAN SEE IN JUNE, ANOTHER 21 MILLION IN JULY 43 MILLION. AND AT THAT POINT WE WERE NO LONGER OVER COLLECTED, BUT WE WERE 27 MILLION UNDER COLLECTED. AND THAT CONTINUED TO OCCUR IN AUGUST, ANOTHER 21 MILLION, UM, UH, REDUCTION. SO THAT PUT US IN A TOTAL UNDER COLLECTION OF 48 MILLION. AND THEN WE FORECASTED WHAT WE THINK IS GONNA HAPPEN IN SEPTEMBER AND OCTOBER, UH, CONTINUED UNDER COLLECTION, AND WE THINK WE'LL END THE YEAR, UM, ABOUT 77 MILLION UNDER COLLECTED. UH, THE COMPLICATE THAT, UH, WE'RE ALSO SITTING ON A, UM, A RECEIVABLE FROM ERCOT. SO WHAT THIS IS ASSOCIATED WITH, WITH, UH, WINTER STORM, UH, YURI, WHEN THE BRASS CO-OP WENT BANKRUPT, UM, AND SO, UM, THEY DID NOT PAY ERCOT, AND SO ERCOT DID NOT PAY US. UM, AND SO WE HAVE THIS RECEIVABLE, AND IT'S COMPLICATED BECAUSE IT'S TIED UP IN BANKRUPTCY COURT. UM, AND THE BANKRUPTCY JUDGE REALLY DETERMINES, [02:15:01] UH, HOW AND WHEN ANYONE WILL GET PAID. UM, IF YOU ADD THAT RECEIVABLE, WE'RE STILL AWAITING FROM THE CASH FOR THAT. UM, THAT MAKES OUR TOTAL UNDERCOVERED AT THE END OF, UH, OCTOBER TO BE 104.2 MILLION. AND REALLY WHAT THAT REPRESENTS IS CASH THAT AUSTIN ENERGY HAS ALREADY SPENT TO BUY ENERGY AND FUEL AND TRANSPORTATION TO SERVE OUR CUSTOMERS THIS PAST YEAR. BUT WE HAVE NOT COLLECTED THAT CASH IN RATES. SO THAT'S WHAT MAKES IT THE UNDER RECOVERY AND OUR PRACTICE IN THE PSA IS TO, UH, COLLECT OR RETURN THAT OVER UNDER COLLECTION OVER A 12 MONTH PERIOD. SO WE TAKE THAT UNDER COLLECTION, YOU ADD IT TO THE PSA OVER A 12 MONTH PERIOD, AND THAT'S PART WHAT CONTRIBUTES TO THE LARGE INCREASE. SOME OF THE QUESTIONS THAT, UM, I, I'VE HEARD IS, WELL, YOU KNOW, YOU PRODUCE ENERGY, UH, YOU HAVE YOUR OWN GENERATION AND IT ACTS LIKE A HEDGE. YOU'VE HEARD TO SAY THAT BOTH THE PHYSICAL AND THE FINANCIAL HEDGE. UM, SO WHY DIDN'T IT WORK? WELL, IT, IT DID WORK, AND I'M PRETTY, PRETTY SIGNIFICANTLY HERE. SO IF YOU LOOK AT HERE, UM, LIKE I SAID, AUSTIN ENERGY BUYS ALL THAT ENERGY WE NEED FROM, UH, TO SERVE OUR CUSTOMERS FROM ERCOT AT OUR LOAD ZONE OR, OR RIGHT OUTSIDE OF AUSTIN, SORT OF LIKE GATES THAT COME INTO AUSTIN. AND SO, UM, THE COST TO, YOU KNOW, PROCURE THAT ENERGY, UM, IS THAT ORANGE LINE THERE, YOU SEE. SO OVER THE COURSE OF THE YEAR, IT WAS PRETTY SIGNIFICANT AND, YOU KNOW, ENDED UP BEING ABOUT, UH, $96, UH, FOR AN AVERAGE MEGAWATT HOUR, UH, OVER THE COURSE OF THE YEAR. UM, OF COURSE WE'RE, WE'RE PRODUCING ENERGY AND WE'RE ALSO, UM, HEDGING FINANCIAL HEDGES. AND THROUGH THOSE ACTIVITIES, WE WERE ABLE TO REDUCE THAT, THAT COST, UH, TO THE CUSTOMER TO ABOUT $40. THAT'S THE BLUE LINE THERE. UM, AND THAT'S WHERE, YOU KNOW, THE ACTUAL COST WERE. AND OF COURSE, THE, THE PSA THAT WE SET LAST NOVEMBER, IT WAS SET TO RECOVER $28 AND 62 CENTS PER MEGAWATT HOUR. SO YOU CAN SEE THE DIFFERENCE BETWEEN THE ACTUAL COST OF 40 AND THE 28 62, THAT'S THE UNDER RECOVERY AMOUNT. AND ONE OF THE THINGS THAT WE DO, UH, EACH QUARTER WE PRESENT TO YOU OUR FINANCIAL REPORT. AND IN THAT REPORT, YOU'LL, YOU'LL PROBABLY FAMILIAR TO THIS CHART, WE'LL OFTEN TALK ABOUT IT. UM, THIS IS WHERE YOU'RE SEEING ALL OF THIS OCCURS. SO OUR LAST, UH, QUARTERLY REPORT WAS THROUGH THE END OF, UH, JUNE. AND SO YOU CAN SEE BACK IN MAY AND JUNE, UH, WE, WE, WE WERE GETTING ANY SIGNS THAT, UM, UH, OUR POWER SUPPLY COSTS WERE, WERE, WERE GETTING REALLY HIGH, UM, AND THAT WE WEREN'T RECOVERING ENOUGH TO, TO OFFSET THAT. AND OF COURSE, YOU CAN SEE IN, IN JULY, UH, IT, IT REALLY, UM, ACCELERATED. AND AUGUST IS, THAT'S THE ACTUAL FOR AUGUST, AND I'M STILL WAITING ON SEPTEMBER'S ACTUALS, BUT WE THINK IT'S GONNA COME IN ABOUT 66. SO YOU CAN SEE, UM, THAT THOSE YELLOW BARS REPRESENT OUR ACTUAL COST. UH, WHAT WE HAD FORECASTED WAS THE, UH, THE GRAY BARS THERE AND THE REVENUE OR WHAT WE SET THE RATE TO RECOVER IS THE BLUE LINE, AND IT WAS SET TO RECOVER LESS THAN OUR ACTUAL COST BECAUSE WE WERE, UH, RETURNING, UH, TO THE CUSTOMERS THAT REVENUE THAT WE GENERATED DURING WINTER STORM UY. AND THIS CHART ALSO IS ON OUR QUARTERLY, UH, BRIEF THAT WE GIVE YOU. AND THIS REALLY SHOWS, UH, HOW OUR RESOURCES, UM, UH, BOUGHT DOWN, UM, THE COST FOR OUR CUSTOMERS. AND SO, UM, OVER THE LAST 12 MONTHS ENDING AUGUST 22, WE SPENT, UH, 1 BILLION, 79 MILLION, UH, BUYING POWERS TO SERVE OUR CUSTOMERS, OUR OWN RESOURCES, THOSE THINGS THAT, THAT WE, WE WE OWN, UH, LIKE SANDHILL AND SOUTH TEXAS PARTICULAR PLANT. AND THE, THE NACHE BIOMASS PLANT, WHICH HAS BEEN RUNNING, UH, FOR, FOR, UH, MOST OF THE YEAR, UM, THOSE GENERATED 386 MILLION, UM, OF, OF, OF OFFSETTING REVENUE. AND SO THAT, UH, THAT BUYS DOWN THAT LOW ZONE COST, OUR CONTRACTED ASSETS, THOSE ARE OUR POWER PURCHASE AGREEMENTS. AND SO THOSE ARE ALL, UH, RENEWABLE ENERGY. SO THAT'S THE WIND AND SOLAR THAT WE HAVE THE PPAS FOR. UM, THOSE ALSO GENERATED 85 MILLION OF NET REVENUE FOR OUR CUSTOMERS. UH, AGAIN, FURTHER BUYING DOWN THOSE LOAD ZONE COSTS, GREEN CHOICE [02:20:01] REVENUE. WHEN CUSTOMERS SIGN UP FOR GREEN CHOICE, THEY PAY A, UH, A SLIGHT PREMIUM FOR THAT, UM, THAT, THAT RENEWABLE ENERGY. AND SO THAT FLOWS TO THE PSA AND WE, WE, WE CREDIT THE, THE POWER SUPPLY COSTS WITH THAT. UM, AND WE ALSO HAVE VALUE OF SOLAR, WHICH, WHICH, UH, IS A COST TO US. SO, UH, WE, WE COMPENSATE OWNERS OF ROOFTOP SOLAR, UM, A PREMIUM, AND THAT GETS PAID OUTTA THAT. BUT THE TOTAL OF THAT GENERATED, UH, AGAIN, A NET BENEFIT OF, OF CIVIC 16 MILLION FOR OUR CUSTOMERS. AND FINALLY, BILATERAL AND HEDGING. SO THESE ARE OUR, OUR FINANCIAL, UM, ACTIVITIES THAT WE DO, UH, TO, TO BUY DOWN THE PRICE. AND THAT GENERATED ADDITIONAL $58 MILLION TO BENEFIT. SO AT THE END OF THE DAY, WE WERE ABLE TO CONVERT THAT 1,079 MILLION OF COST, UH, THAT WE INCURRED TO 535 MILLION FOR OUR CUSTOMERS. STILL A LOT OF EXPENSE, UH, BUT SUBSEQUENTLY LESS THAN, UM, UH, WHAT, UH, WE WERE EXPOSED TO THE MARKET AT THE TIME. SO THOSE ARE ALL THE HISTORICALLY WHAT, WHAT ACTUALLY HAPPENED. AND WHY IS THAT IMPORTANT? IS BECAUSE THE WAY WE CALCULATE THE POWER SUPPLY ADJUSTMENT IS BASED ON HISTORICALS. SO WE SET THE FY OR EXCUSE ME, THE, THE 2023, UH, POWER SUPPLY COST BASED ON WHAT HAPPENED IN 2022. UM, SO THIS IS ALSO PART OF THAT, THAT MEMO I SENT YOU. AND, UM, I WON'T MAKE ANYONE DO MATH, UH, BUT THESE ARE THE NUMBERS. SO YOU CAN SEE THAT, UM, LAST YEAR, UH, WE HAD AN UNDER RECOVERY, UM, OF ABOUT $51 MILLION IN THE CALCULATION AND ACTUAL COST OF 402 MILLION THIS YEAR. WE HAD A, UM, UH, AN UNDER, EXCUSE ME, LAST YEAR WAS AN UNDER RECOVERY. THIS YEAR WE HAVE A, EXCUSE ME, OVER COLLECTION THIS YEAR. IT'S AN UNDER RECOVERY OF 104.2 MILLION, UM, AN ACTUAL COST AGAIN, AND THAT'S THAT 535 MILLION NUMBER I JUST SHOWED YOU. SO THAT'S HOW IT'S CALCULATED. AND THIS KIND OF SHOWS A COMPARISON OF THE COMPONENTS THAT GO INTO OUR CALCULATION. SO YOU CAN SEE IN 2022, THE PRIOR YEARS ACTUAL COST, WHICH WOULD'VE BEEN IN 2021, WAS ABOUT 383 MILLION. UH, IN 2023, THAT WAS 539 MILLION, UH, OR INCREASE OF ABOUT 157 MILLION OR 40%. SO, UH, ONE OF THE KEY COMPONENTS OF WHY THE PSA IS GOING UP SO MUCH IS THE ACTUAL COST INCREASED BY 40% KNOWN IN MEASURABLES. SO THIS IS WHERE IF WE HAVE A RESOURCE, SO FOR EXAMPLE, DECKER STEAM UNIT TWO CLOSED, UH, IN MARCH, UH, OF THIS YEAR, IT RETIRED. AND SO WE KNOW IT'S NOT GONNA BE AVAILABLE FOR US NEXT YEAR. SO WE MAKE ADJUSTMENT FOR THAT. WE TAKE OUT THE COST AND REVENUES ASSOCIATED WITH DECKER STEAM UNIT TWO OUT OF THE CALCULATION. WE KNOW THAT'S NOT GONNA HAPPEN, AND WE CAN MEASURE THE IMPACT. SO THOSE ARE THE TYPES OF ADJUSTMENTS. IF WE HAVE A NEW POWER PURCHASE AGREEMENT COMING ONLINE, WE KNOW WHAT THE COSTS ARE, WE KNOW WHAT THE CAPACITY FACTOR IS, WE MIGHT MAKE AN ADJUSTMENT FOR THAT. SO THESE ARE THINGS THAT, UH, WE CAN HANG OUR HAT ON THAT, THAT WE KNOW ARE GONNA HAPPEN. AND THE NET EFFECT OF THAT IS, UM, UH, WE ADDED 19 MILLION LAST YEAR. THIS YEAR. UH, WE REDUCED IT, UM, BY 4.3. UH, SO THAT'S A DIFFERENCE OF, UM, 23 MILLION LOWER SO THAT THAT BENEFITS THE POWER SUPPLY, RIGHT? UM, YURI OVER RECOVERY, WE CALL THIS OUT SEPARATELY, UH, BECAUSE IT WAS SO UNIQUE. UM, SO IN 2022, WE HAD 69 MILLION OF CASH, UH, THAT WERE ABLE TO CREDIT THE POWER SUPPLY THAT WOULD, THAT BOUGHT IT DOWN, RIGHT? SO THAT LOWERED THE, THE COST FOR OUR CUSTOMERS. AS I POINTED OUT, ALL OF THAT'S BEEN RETURNED TO THE CUSTOMERS, UH, AS OF MAY. IN FACT, WE'VE GONE TO AN UNDERCOVERED STATUS AT THIS POINT, SO A HUNDRED PERCENT IT'S GONE. SO WE HAVE TO INCREASE THE PSA JUST TO MAKE UP FOR THAT 69 MILLION DIFFERENCE. UH, THE NEXT IS THE ACTUAL OVER RECOVERY. IF YOU REMEMBER ON THE CHART, UH, WE CALCULATE THIS, SUE, I HAVE ACTUAL RESULTS ALL THE WAY THROUGH AUGUST. AND SO, UM, LAST YEAR WE HAD, UH, UM, THE ACTUAL UNDER RECOVERY EXCLUDING AREA OF ABOUT 2.1 MILLION. THIS YEAR, OUR UNDER RECOVERY IS 75.2 MILLION, UH, A DIFFERENCE OF 77.3 MILLION. SO THAT MEANS PSA HAS TO COME UP TO MAKE UP FOR THAT, UH, UNDER RECOVERY. AND FINALLY, UM, SEPTEMBER AND OCTOBER RESULTS I DO NOT HAVE YET. SO WE'RE USING OUR FORECAST NUMBERS TO DEVELOP THOSE. WE THINK, UM, [02:25:01] THAT'S GONNA GENERATE 29 MILLION OF, UM, UNDER RECOVERY, ADDING TO THAT, UM, WHICH IS ABOUT 10 MILLION HIGHER THAN WE HAD LAST YEAR. SO THAT'S 44%. SO THE TOTAL IS, UH, ABOUT 351 MILLION IN POWER SUPPLY COSTS LAST YEAR. THIS YEAR IT'S ABOUT 639 MILLION OR 288 MILLION HIGHER, OR AN 82% INCREASE. AND THEN WE TAKE THOSE GROSS TOTALS AND MILLIONS OF DOLLARS, AND WE APPLY THAT TO, UH, WHAT WE CALL THE, THE LOAD OR THE CONSUMPTION THAT, THAT THE KILOWATT HOURS THAT OUR CUSTOMERS CONSUME. AND SO YOU CAN SEE BACK IN 2022, WE STARTED WITH ACTUAL COST ABOUT 2.30 CENTS, NO TO MEASURABLES ADDED, UH, UH, OR BY NINE, UH, ALMOST A PENNY. UM, OVER AND UNDER WAS ABOUT, UH, POINT, UH, SIX SETS, UH, EXPECTED OVER RECOVER ADDED TO THAT. SO THE PSA RATE THAT WE SET LAST NOVEMBER AND IS RUNS THROUGH TODAY IS ABOUT 2.86 CENTS, UM, THIS YEAR. YOU CAN SEE HOW THAT'S CHANGED. THE, UM, PRIORS ACTUAL COST IS, UH, OVER 4 CENTS, ALMOST 4.1, UM, NOT MEASURABLE CHANGES. THE ACTUAL OVER IS ADDED, UH, 0.6 EXPECTED, UM, IS NOT GONNA GET ANY BETTER. SO THAT ARRIVES AT THE 4.89 CENTS. THAT WAS IN YOUR MEMO. THAT'S WHERE, UH, THE CALCULATED PSA, ACCORDING TO THE TARIFF NEEDS TO BE SET. ONE OF THE THINGS WE'VE DONE IS WE'VE APPLIED THIS TO, UM, AN AVERAGE OR A TYPICAL RESIDENTIAL BILL. UM, WE USE THE NUMBER 860, UM, THAT'S ABOUT, UH, WHAT A TYPICAL CUSTOMER USES, UM, ON A MONTHLY BASIS. UM, EXCUSE ME, WE'RE USING 8 51 ON THIS CHART. 8 51 IS WHAT OUR CUSTOMERS ACTUALLY USED IN 2020. SO IT'S SLIGHT LESS THAN 860. UM, AND YOU CAN SEE THAT, UM, UNDER THE CURRENT, UH, BILL, IT IS, UM, A LITTLE OVER $80 IS A CURRENT CUSTOMER BILL. UM, AND THE OTHER YELLOW BAR IS, UH, ASSUMING, UM, UH, THE APPLICATION OF THIS, UH, PSA WHERE IT NEEDS TO BE IN ADDITION TO, UM, THE BASE RATE INCREASE THAT IS, UH, CURRENTLY UNDER CONSIDERATION. AND SO I WANTED TO SHOW YOU, UH, WITH EVERYTHING BAKED INTO IT, WHERE WOULD OUR, OUR TYPICAL CUSTOMERS BILL BE? AND SO THAT'S ABOUT $118 THERE, AND YOU CAN SEE HOW THAT COMPARES TO THE TYPICAL BILL FOR THE OTHER, UM, REGIONAL UTILITIES. UM, AND YOU CAN SEE THAT, UH, ONE OF THE BIG DRIVERS, UH, FOR THE, THE, THE VARIATIONS IN BILLS IS CONSUMPTION. UM, SO YOU CAN SEE A NEW BRO FILLS, THEIR TYPICAL RESIDENTIAL CUSTOMER USES ABOUT 1,209 KILOWATT HOURS, UH, WHILE IN AUSTIN WE USED 851. SO THAT'S FOR, UH, 2020. AND YOU CAN SEE ALONG THE SPECTRUM THAT GENERALLY WE ARE, UH, MUCH LESS IN TERMS OF CONSUMPTION, SO THAT GENERATES A LOWER BILL FOR OUR CUSTOMERS. AND SO I KNOW THERE'S A, UM, A LOT OF QUESTIONS ABOUT YOU AS A DECISION MAKERS. WHAT ARE YOUR, YOUR OPTIONS? WHAT ARE THE IMPACTS OF THOSE OPTIONS? SO I WANTED TO COVER SOME OF THOSE HERE, UM, WITH YOU. UM, BUT THE FIRST, I, IT'S, UM, IF IT'S ANY CONSOLATION, THIS IS NOT, UH, UNIQUE TO AUSTIN OR ERCO OR TEXAS, THIS IS HAPPENING NATIONALLY, EVEN GLOBALLY. UM, AS I POINTED OUT EARLIER, THAT THE PRICE OF NATURAL GAS REALLY DRIVES THE PRICE OF ELECTRICITY. AND WITH ELECTRIFIED, UH, NATURAL GAS, NATURAL GAS IS BECOMING A GLOBAL COMMODITY, MUCH LIKE OIL. AND SO, UM, ALTHOUGH WE HAVE A LOT OF NATURAL GAS IN TEXAS, IT HAS A, A GLOBAL IMPLEMENTATION ON THE PRICING. AND SO WHAT WE'RE SEEING ACROSS THE COUNTRY, UM, ACROSS THE WORLD IS SIGNIFICANT INCREASES IN THE PRICE OF ELECTRICITY WHERE NATURAL GAS IS THE MAIN DRIVER. AND SO THIS CHART IS AN INDEX FROM FITCH THAT WAS PUBLISHED ON, UH, AUGUST 30TH, AND IT WAS REALLY TO ALL THE PUBLIC POWER PROVIDERS, UM, OF WHICH, UM, FITCH COVERS AUSTIN ENERGY. AND SO IT SHOWS THAT THERE'S A SIGNIFICANT SPIKE, UH, ACROSS THE SPECTRUM, REALLY HAPPENING IN 21 AND 22. UM, AND, UH, UH, INVESTMENT COMMUNITY IS, [02:30:01] IS WATCHING US AS WELL AS THE CREDIT RATING AGENCIES. UM, THEY RECOGNIZE WE'RE ALL UNDER PRESSURE AND RAISING RATES IS NEVER POPULAR. UM, BUT FOR PUBLIC POWER, WHICH HAS NO PROFIT COMPONENT OR RETURN COMPONENT, UM, IT'S A, IT'S A COST RECOVERY. AND SO, UM, IF WE DON'T RECOVER THOSE COSTS, UH, FROM THE CUSTOMERS, WE HAVE NO OTHER AVENUE TO GENERATE THE CASH TO PAY FUTURE BILLS. SO THEY'RE WATCHING THIS, OBVIOUSLY, UH, WE HAVE ABOUT 1.9 BILLION IN LONG TERM DEBT. AND SO OUR INVESTORS ARE WATCHING US TO SEE WHAT WE DO, HOW WE RESPOND TO THIS, AND WHETHER WE CAN MANAGE IT FINANCIALLY. SO WITH THAT, I HAVE A, A COUPLE OPTIONS HERE. THAT TEXT IS PRETTY SMALL, UH, AND I APOLOGIZE FOR THAT. UM, SO, UM, THE FIRST OPTION I HAVE HERE LISTED IS AS PROPOSED. WHAT I JUST RE UH, I COVERED YOU. SO THAT'S A, UM, UH, AN AVERAGE, UH, SISTER MADE ABOUT 4.8, OR FOR A RESIDENTIAL CUSTOMER THAT'S ABOUT A 4.90 CENT PER K H, UM, POWER SUPPLY ADJUSTMENT, OR ABOUT A 71% INCREASE IN THAT RATE, UM, THAT ON A TYPICAL CUSTOMER WILL INCREASE THEIR BILL ABOUT $17 AND 55 CENTS. UM, AND I, I, I DO NEED TO ADD HERE, WE HAVE ANOTHER PASS THROUGH CHARGE CALLED A REGULATORY CHARGE. UM, THAT IS ALSO, UM, UH, INCREASING. UH, LAST YEAR WE INCREASED IT ABOUT 30%. THE INTENT THIS YEAR WAS TO INCREASE ANOTHER AUTHORITY, AND NEXT YEAR, ANOTHER 30 TO RECOVER, UH, AN UNDER RECOVERY THERE. UH, AND WHAT REGULATORY CHARGES, UM, ERCO, UM, THE, THE ELECTRIC GRID TO TRANSMIT ELECTRICITY IS AN OPEN ACCESS. AND SO WE HAVE A LOT OF TRANSMISSION PROVIDERS. AND SO, UH, THOSE RATES ARE SET BY THE PUBLIC UTILITY COMMISSION, AND EVERYONE SHARES IN THE COST OF THAT TRANSMISSION. AND AGAIN, OUR SHARES ROUGHLY ABOUT 4%. AND SO WE GET ABOUT, UH, 4% OF THOSE COSTS. AND THESE ARE THE BILL. WE, WE DON'T PAY ERCOT FOR THAT. WE PAY OTHER, THE, ALL THE OTHER TRANSMISSION PROVIDERS IN ERCOT, UH, THAT, SO THAT'S WHO WE GIVE THAT MONEY TO, TO, TO USE THEIR GRID AND THEN RETURN, THEY PAY US TO USE OUR GRID AS WELL, AND THAT, THAT OFFSETS THAT COST. SO THAT'S THE REGULATORY CHARGE. IT'S SEPARATE FROM THE TRANSMISSION, WHICH IS A SEPARATE LINE OF BUSINESS. UH, SO THIS IS WHAT IT NEEDS. THIS IS WHAT IT TAKES TO GET TO POWER FROM ALL THOSE GENERATION UNITS ALL OVER TEXAS INTO AUSTIN TO SERVE OUR CUSTOMERS. THAT'S THE COST ASSOCIATED WITH THAT. SO THAT IS GOING UP ABOUT $2 AND 45 CENTS. SO THAT'S WHAT YOU'VE HEARD, THIS $20 INCREASE IN THE AVERAGE, UH, CUSTOMER BILL, THAT'S WHERE IT COMES, THE PSA AND THE, UH, REGULATORY CHARGE, THE COMMUNITY BENEFITS CHARGE IS NOT PROJECTED TO GO UP AT THIS TIME. UM, SO ONE OF THE POSITIVE ATTRIBUTES, AND I'M USING POSITIVE NEGATIVE, NOT NECESSARILY IN TERMS OF CUSTOMERS AND AUSTIN ENERGY, UM, BUT JUST, UM, OVERALL, YOU KNOW, IT, IT MEETS OUR EXISTING PSA REQUIREMENTS. SO IT'S CONSISTENT WITH WHAT WE'VE ALWAYS DONE. THE ORDINANCE WE HAVE IN PLACE THAT PSA TARIFF SHOWED YOU EARLIER. IT MEETS ALL OF THOSE REQUIREMENTS. UM, IT ALSO RECOVERS THAT CASH THAT WE'VE ALREADY EXPENDED TO BUY POWER FOR OUR CUSTOMERS. UM, AND WHY THAT'S IMPORTANT IS, UM, WE USE, AGAIN, HISTORICAL, UM, COST TO RECOVER, UH, UH, THOSE RATES, AND WE'VE ALREADY SPENT THAT MONEY. AND SO PART OF, UH, YOU'VE, YOU'VE HEARD ME TALK IN EACH OF THESE QUARTERLY BRIEFINGS, HOW OUR CASH BALANCES ARE DECREASING. WE COVERED IT HERE IN A MINUTE. SO THAT CASH IS GOING OUT THE DOOR TO PAY THOSE BILLS WITH THE INTENT OF RECOVERING IN NEXT YEAR'S POWER SUPPLY ADJUSTMENT. SO THAT'S WHY IT'S GOING UP. UM, UH, THE OTHER ACTUALLY, IT ACTUALLY REFLECTS THE, THE COST TO ACQUIRE THAT POWER. UH, WE OFTEN TALK ABOUT SENDING CUSTOMERS PRICE SIGNALS, AND YOU, YOU KNOW, THAT WITHIN OUR RATES, WE HAVE TIERED PRICES IN THE BASE RATES. AND I, I POINTED OUT THAT, UH, THOSE BASE RATES ARE RECOVER FIXED COSTS. IT'S LIKE YOUR CAR PAYMENT. YOU WOULDN'T, UH, NECESSARILY CALL YOUR, UH, YOU KNOW, TOYOTA FINANCE AND LET THEM KNOW THAT, HEY, I ONLY DROVE 500 MILES THIS MONTH, SO I'M GONNA GONNA SEND YOU HALF MY CAR PAYMENT. UM, YOUR CAR PAYMENT'S THE SAME REGARDLESS OF HOW MUCH YOU DRIVE. UM, AND THE POWER SUPPLY IS MORE LIKE THAT FUEL BILL. AND SO, UM, UH, OUR CUSTOMERS ACTUALLY USE THAT ENERGY. AND AS YOU ALL KNOW, WE EXPERIENCED A SIGNIFICANTLY HOT SUMMER THIS YEAR. UM, IT WAS STILL GOING ON UNTIL THIS WEEKEND. AND SO, UM, I CALCULATED THAT BETWEEN MAY AND AUGUST OF THIS YEAR, WE USED, UM, 13.7% MORE ENERGY THAN WE DID IN [02:35:01] 21. SO OUR LOAD INCREASED ALMOST 14% YEAR OVER YEAR. SO NOT ONLY WAS IT COSTING US A LOT MORE TO BUY POWER, WE WERE USING A LOT MORE POWER. SO THAT'S THE NOTION THAT IF YOU DRIVE A LOT MORE MILES, YOUR FUEL BILL IS GONNA BE HIGHER, BUT YOUR CAR PAYMENT WON'T BE RIGHT. SO, UM, UM, THAT'S A, AN ANALOGY I WAS TRYING TO USING INCON BETWEEN THE BASE RATES AND, AND THE PSA, HOW THEY, HOW THEY WORK DIFFERENTLY. AND FINALLY, UM, AS I STATED THAT SETTING IT, UH, UNDER THIS OPTION IS CONSISTENT WITH WHAT WE'VE DONE IN ALL PREVIOUS YEARS. WHAT'S NOT CONSISTENT IS THE PRICE OF POWER IN ERCOT. THOSE RULES, THEY'VE CHANGED AND THE AMOUNT OF UNDER RECOVERY HAVE. SO THAT IS NOT CONSISTENT, AND THAT'S ONE REASON WHY THIS LOOKS A MUCH HIGHER THAN PREVIOUS YEARS. UM, KIND OF NEGATIVE ATTRIBUTES OBVIOUSLY IS, UH, WE'RE ALWAYS CONCERNED FOR OUR CUSTOMERS, AND THIS IS A SIGNIFICANT INCREASE. UM, UM, AND, UM, THE OTHER NEGATIVE ATTRIBUTE IS IT POINTED OUT, WHICH IS THE RISK OF, UH, OVER RECOVERY. IF THE, IF THE PRICE DECLINES, WHICH IS, UM, YOU HEARD PEOPLE SAYING, UH, BEING BEHIND THE CURVE, THIS IS LOWRY. WE COULD BE BEHIND THE CURVE. SO WE, WE INCREASE PRICES BASED UPON THAT HISTORICAL NUMBER, AND WE ARE SEEING NATURAL GAS PRICES MODERATE. UM, THEY'RE NOT, WE'RE NOT SAYING WHAT WE SAW EARLIER, UH, OR LAST YEAR. UM, AND IF THEY CONTINUE TO DECLINE AND WE HAVE A MODERATE YEAR, WE COULD SEE POWER PRICES DECREASING, PUTTING US IN A RAPID OVER COLLECTION PHASE, RIGHT, DURING THE COURSE OF THE YEAR, WHICH WOULD HAVE US COME BACK IF IT'S MORE THAN 10% IN ADJUSTMENT OVER THE COURSE OF THE YEAR. BUT THAT, THAT'S OBVIOUSLY A RISK. AND, UM, UM, I OFTEN CALL IT CALLED SELF-INDUCED OSCULATION, SORT OF A PAR SUPPLY COSTS ARE ARE A S WAVE, AND WE'RE, WE'RE, WE'RE CHASING THAT CURVE, AND EVERY TIME WE ADJUST IT, WE MIGHT BE BEHIND THAT CURVE. UM, SO THAT'S, AS I'VE ALREADY PRESENTED. UM, OPTION TWO, UM, IS, UH, IF WE TAKE THIS SIGNIFICANT, UM, UNDERCOVERED AMOUNT AND WE SPREAD IT OVER THREE YEAR PERIOD, UM, UM, SO IT KIND OF, UH, DAMPENS THE, THE IMPACT OF THAT, THAT OVER UNDER RECOVERY FOR OUR CUSTOMERS, UM, THAT WOULD RE WOULD REDUCE FOR A RESIDENTIAL CUSTOMER TO ABOUT 4.37 CENTS, OR ABOUT A 52% INCREASE IN THE RATE, OR ABOUT $12 AND 85 CENTS ON A, ON A MONTHLY BILL FOR A, FOR A RESIDENTIAL CUSTOMER. UM, COUPLE OF POSITIVE ATTRIBUTES IS, UM, YOU'RE THE CITY COUNCIL, YOU SET THE TARIFF, YOU SET THE RULES, IT'S WITHIN YOUR DISCRETION TO CHANGE THAT PSA TARIFF. SO, UM, YOU CAN MODIFY THAT REQUIREMENT THAT THAT'S IN THE TARIFF. UM, UM, ANOTHER POSITIVE ATTRIBUTE IS IT DOES ALLOW US TO RECOVER SOME OF THAT CASH OVER, ALBEIT A THREE YEAR PERIOD, BUT IT STARTS TO GENERATE SOME OF THAT CASH, UH, UH, THAT WE NEED, UM, TO POTENTIALLY PAY FUTURE BILLS IF WE DON'T HAVE, UH, THE CASH AT THAT TIME. UM, IT'S CONSISTENT WITH THE METHOD WE USE FOR OTHER PASS THROUGHS. UM, FOR STABILITY PURPOSES, AS I MENTIONED EARLIER, WE HAVE THE REGULATORY CHARGE THAT WE PAYS FOR USING THE GRID WITH AN . UM, SEVERAL YEARS AGO, UM, WHEN THE PANDEMIC HIT, WE HAD AN OVER RECOVERY. AND SO AS A WAY TO TRY TO HELP MITIGATE THE IMPACT FOR OUR CUSTOMERS, YOU'LL RECALL, WE, WE SIGNIFICANT LOWERED THAT, THAT REGULATORY CHARGE WE GAVE BACK, ALL OF THAT OVER RECOVERY HAD OVER ABOUT A, A A SIX OR SEVEN MONTH PERIOD. UM, UM, AND SO THAT REALLY REDUCED, UM, THE CHARGES FOR OUR CUSTOMERS, UM, DURING THE EARLY STAGES OF THE PANDEMIC. UM, OF COURSE, IT, IT, IT CONTINUED ON. UM, BUT THOSE CHARGES, UH, THEY DON'T VARY EACH YEAR. THEY SLIGHTLY INCREASE EACH YEAR. WE'VE NEVER SEEN THAT REGULATORY CHARGE GO DOWN EACH YEAR, SO IT'S SORT OF A SLOW ESCALATING COST. UM, AS A WAY TO MITIGATE THAT, WE, WE SAID, ALL RIGHT, WELL, WELL, UH, RATHER THAN RECOVER ALL OF THAT UNDERCHARGE IN ONE YEAR, WE'LL DO IT OVER THREE YEARS. SO LAST YEAR WE INCREASED AT ABOUT 20%, AND THIS YEAR WE'RE INCREASING ABOUT 20%. UM, WE WON'T, UM, UM, WE WON'T HAVE, HOPEFULLY WE WON'T HAVE TO PAY MORE CASH TO PAY THOSE BILLS. UH, BUT WE WON'T, WE WON'T RECOVER ANY OF THAT UNDER RECOVERY AT THIS POINT. IT'LL STILL BE A, A, UH, DO AUSTIN ENERGY, AND THEN NEXT YEAR THE INTENT IS RECOVER THE, THE REST OF IT WITH ANOTHER, UH, REGULATORY CHARGE INCREASE. SO, UM, WE DON'T DO THAT WITH THE PSA BECAUSE IN THE TARIFF, IT'S VERY SPECIFIC. IT TELLS US TO DO IT OVER A 12 MONTH PERIOD. SO YOU AS, UH, CITY COUNCIL, YOU DO HAVE THE DISCRETION TO SAY, LET'S DO THIS OVER A THREE YEAR PERIOD, UM, AS WE'VE DONE WITH THE OTHER, UH, CHARGES. SO THAT'S [02:40:01] WITHIN YOUR DISCRETION, UM, THAT WILL SLIGHTLY REDUCE THAT BURDEN ON OUR CUSTOMERS, UH, BY CUTTING THAT FROM, UH, UH, 1755 A MONTH TO $12 AND 85 CENTS A MONTH. UH, SOME OF THE NEGATIVE ATTRIBUTES, UH, AS I'M GONNA POINT IT OUT HERE, WE ARE, UH, VERY LOW ON CASH. UH, WE LIKE TO KEEP AROUND 150 DAYS CASH ON HAND. WE'RE ABOUT 120 DAYS, 121 DAYS. UM, AND UNLESS WE GET THESE RATE CHANGES, WE'RE GONNA CONTINUE TO SPEND CASH FOR ONGOING OPERATIONS. SO THINK OF IT IN YOUR RETIREMENT AS YOU'RE USING YOUR SAVINGS. IF YOU DON'T HAVE A WAY TO REPLENISH THAT AT SOME POINT, YOU, YOU, YOU RUN OUTTA MONEY. UM, AND SO, UM, WE ARE, UM, VERY LOW ON CASH. UM, UM, THE OTHER ISSUE IS, UM, YOU KNOW, THERE MAY BE THINGS THAT WE CAN DO, UH, UM, TO, IF WE CAN OFFSET SOME OF OUR, OUR COSTS THAT THEN WE CAN ATTRIBUTE TO THAT CASH. THAT'S POSSIBLE. I DON'T HAVE ANY SOLUTIONS HERE. YOU KNOW, WE'VE, WE JUST SET THE BUDGET AT SOME OF THE, THE LOWEST, UH, COSTS, UM, OR BUDGETARY INCREASE WE HAD IN RECENT YEARS. AND AS YOU KNOW, WE'RE SEEING A LOT OF INFLATION IN OUR COSTS. SO I DON'T HAVE A SOLUTION FOR YOU HERE, BUT WE'LL LOOK FOR WAYS TO POTENTIALLY REDUCE EXPENSES, UM, THAT WOULD SAVE SOME OF THAT CASH FOR US, UM, TO OFFSET THAT. UM, AND WHILE, UM, NEGATIVE ATTRIBUTE IS IT, IT DOES REDUCE THAT INCREASE ON OUR, UH, RESIDENTIAL CUSTOMER. UH, $12 AND 85 CENTS IS STILL A BIG INCREASE. WE, WE, WE, WE AREN'T RECOGNIZE THAT, UM, BUT IT DOES KIND OF DAMPEN THAT. THE THIRD OPTION, UM, IS, UM, TO ELIMINATE THE UNDER RECOVERY WITH NON AE FUNDS. AND I DON'T, I DON'T HAVE ANYONE OFFERING, UH, TO DO THAT. UH, BUT IT'S AN OPTION THAT, YOU KNOW, WE, WE CAN TALK ABOUT AND CONSIDER AND SEE IF THERE'S SOURCES. BUT, SO IF WE WERE TO TOTALLY ELIMINATE THAT, THAT 104 MILLION, UM, UNDER RECOVERY, UM, THAT WOULD LOWER THE RATE TO $4, OR EXCUSE ME, 4.10 CENTS. AND REALLY WHAT THAT REPRESENTS IS WHAT IS JUST THE ACTUAL HISTORICAL COST TO PROVIDE POWER THAT KIND OF ISOLATES THAT. SO THAT'S WHAT WE ACTUALLY SPENT IN 22 TO PROVIDE POWER TO OUR CUSTOMERS, THAT WOULD GENERATE A 42% INCREASE. NOW, THAT'S KIND OF THE BASELINE, TOOK OUT THE OVER AND UNDER. IT'S A 42% INCREASE, OR ABOUT $10 AND 49 CENTS ON AVERAGE CUSTOMER. AND AGAIN, UM, YOU'RE THE CITY COUNCIL, UH, THAT'S WITHIN YOUR DISCRETION. UM, AND IT WOULD REDUCE OUR PSA BURDEN, UM, KIND OF NEGATIVE ATTRIBUTES. UH, EVEN $10 AND 49 CENTS WE RECOGNIZE IS, UM, A SIGNIFICANT INCREASE ON SOME OF OUR CUSTOMERS. UM, WE HAVE A, A GENEROUS CAP PROGRAM, UH, THAT CUSTOMERS CAN APPLY FOR, BUT EVEN THE FOLKS THAT DON'T QUALIFY FOR CAP $10 CAN BE A LOT OF MONEY. THAT'S $120 A YEAR. SO WE RECOGNIZE THAT. UM, THE NEXT IS, UM, AUSTIN ENERGY DOES NOT HAVE THE CASH TO FUND THIS OPERATION. UM, I CAN'T OFFER THIS AND SAY WE CAN ABSORB THAT, THAT DIFFERENCE. I, I CAN'T WRITE THAT DOWN. UM, UM, WE WOULD HAVE TO FIND SOME WAY TO REDUCE OUR COSTS OR INCREASE IN OUR REVENUE AND APPLY THAT. AND, UM, I DON'T HAVE A SOLUTION SITTING HERE FOR YOU FOR THAT. UM, BUT WE CAN DISCUSS IT. AND FINALLY, UM, THIS WOULD BE NOT CONSISTENT WITH EXISTING UTILITY RATE MAKING, UH, AND POTENTIALLY NEGATIVE CREDIT IMPACTS. AND, AND WHY THAT POINT IS, I, I, I SHOWED THAT SLIDE EARLIER FROM FITCH THAT REALLY WHAT THEY EXPECT IS A BALANCE, THAT YOU HAVE FINANCIAL POLICIES AND RATES THAT WORK IN CONJUNCTION WITH EACH OTHER, AND THAT YOU RECOVER YOUR COST FROM THOSE THINGS THAT CAUSE THE COST. UM, AND SO, UH, FOR UTILITIES, THAT'S THE RATE MAKING. UM, AND SO THEY MAY LOOK AT THIS NEGATIVELY, UH, NOT AS NEGATIVELY AS WE DON'T COLLECT THE CASH AT ALL, BUT IT COULD HAVE A NEGATIVE CREDIT IMPACT. UM, AND JUST GIVING AN UPDATE. SO WE, WE WERE UP, WE WERE, UH, DOWNGRADED THIS YEAR, UH, FROM AA TO AA MINUS, UH, BY TWO OF THE AGENCIES. AND MAKE NO MISTAKE, DOUBLE A MINUS IS STILL A GOOD RATING. DOUBLE A IS A GOOD RATING, BUT WHAT'S REALLY IMPORTANT TO TAKE AWAY FROM THAT IS WHY DO WE GET THE DOWNGRADE? IT WAS BECAUSE, UM, OF OUR LIQUIDITY, IT MEANS WE HAVE LESS CASH ON HAND. WE'VE RECUR, WE'VE, UH, INCURRED TWO YEARS OF NEGATIVE NET INCOME, UM, AND WE SEE INCREASING PRICES BOTH IN THE POWER MARKET AS WELL AS JUST OTHER INFLATIONARY ITEMS. AND SO THEY'RE WATCHING WHAT WE DO FOR RATES, AND THEY'VE SAID, IF YOUR RATES REFLECT, YOU KNOW WHERE THEY NEED TO GO, THAT'S A POSITIVE FOR YOU. UM, AND THAT COULD BE A, A FUTURE, UH, CREDIT IMPROVEMENT. BUT IF YOU DON'T TAKE APPROPRIATE ACTION, YOU CAN EXPECT [02:45:01] FURTHER NEGATIVE OR A FUTURE DOWNGRADE. AND SO, UM, THIS SPRING AND 2023 AUSTIN ENERGY WILL BE GOING TO THE BOND MARKET, UM, TO BORROW MONEY. UH, WE'RE LOOKING AT REFINANCING OUR 2012 A AND B. UH, WE THINK WE MIGHT BE ABLE TO GET A BETTER RATE AND BUY DOWN THAT INTEREST COST FOR OUR CUSTOMERS. SO VERY SIMILAR TO WHAT WATER JUST DID A WEEK OR TWO AGO. UH, WE ALSO HAVE COMMERCIAL PAPER THAT WILL BE HITTING CLOSE TO ITS LIMITS. AND SO WE BORROW LONG TERM. WE, WE, WE TAKE OFF, WE TAKE DOWN THAT COMMERCIAL PAPER, WE PAY IT OFF, UH, WITH LONG TERM BONDS. UM, AT THAT TIME WE WILL GET, UH, A CREDIT REVIEW BY THE CREDITING AGENCIES. AND SO A LOT OF THE ACTIONS WE'RE DOING TODAY AND THIS WEEK AND NEXT WEEK, UH, WILL BE EVALUATED BY THOSE CREDIT AGENCIES AND SEND SIGNALS TO THE INVESTMENT COMMUNITY WHEN WE SELL THOSE BONDS AND COULD RAISE THE COST OF THOSE BONDS FOR US, UH, IN THE, IN THE, IN THE SPRING. UM, AND FINALLY, OPTION FOUR IS, UM, UH, KIND OF A RANGE. SO I, I'VE SORT OF GIVEN YOU OPTION ONE THROUGH THREE. YOU COULD SORT OF PICK A TOLERANCE. SO WE CAN GO SOMEWHERE BETWEEN $10 AND 49 CENTS. IF YOU CAN FIND ME $104 MILLION OR, UH, $17 AND 55 CENTS TO SAY, CONSISTENT WITH OUR PAST PRACTICES OR SOMEWHERE IN BETWEEN THERE, WHAT, WHAT YOU THINK IT MIGHT BE, UM, UM, UH, A RATE THAT'S TOLERABLE, UM, UH, FOR YOU AS, AS, AS THE, UH, AS THE CITY COUNCIL. AND THEN WE CAN COME BACK WITH YOU AND TELL YOU WHAT THOSE IMPACTS. IT'D BE SOMEWHERE IN THE, IN THESE RANGES HERE. SO, UM, AGAIN, YOUR CITY COUNCIL, YOU GET TO DECIDE THAT'S WITHIN YOUR REALM. UM, AND SO YOU CAN HELP US DECIDE WHAT, WHAT IS AFFORDABLE. IF YOU THINK 1755 IS NOT AFFORDABLE AND YOU WANT SOMETHING LESS, TELL US WHAT YOU THINK IS LESS, AND WE'LL TELL YOU WHAT THE IMPACTS ARE. UM, NEGATIVE ATTRIBUTES IS, UM, NOT CONSISTENT WITH RATE MAKING PRINCIPLES. UM, GENERALLY, UH, UH, GOVERNING BODIES DON'T DECIDE WHAT THE RATES ARE AND THEN TELL THE UTILITY, IT'S KIND OF THE OTHER WAY AROUND. BUT, UM, UH, THAT COULD BE A CREDIT IMPACT, UM, ON THAT. AND FINALLY, UH, THE NEGATIVE ATTRIBUTES WOULD VERY, VERY SIMILAR TO OPTIONS TWO AND THREE. UM, SOMEWHERE BETWEEN REALLY JEOPARDIZING OR SLOWING DOWN RECOVERY THAT CASH TO, UM, HAVING TO FIND 104 MILLION SOMEWHERE. SO THOSE, THOSE ARE THE IMPACTS. AN EVALUATION, I'M THROWING OUT SOME OF THESE NUMBERS FOR YOU. SO, UM, OUR CASH BALANCE AT, UM, THE BEGINNING OF OCTOBER, 2020 OR OUR PHYSICAL YEAR, UM, WAS ABOUT $402 MILLION, UH, IN, UH, IN 2020. SINCE THAT TIME, UH, WE'VE BEEN USING CASH, UH, BOTH FOR OUR, OUR POWER SUPPLY AND OUR REGULATORY CHARGE, AS WELL AS OUR BASE RATES, UM, ARE UNDER RECOVERING. AND SO SINCE THAT TIME, WE'VE, UH, OUR CASH BALANCE AT THE END OF AUGUST IS 184 MILLION. WE'RE DOWN 218 MILLION, WHICH IS SIGNIFICANT. UM, AND SORT OF THE TWO AND PIECES OF THAT. SO THE PSA AND REGULATORY, WHICH, UH, WE'VE ADDRESSED TODAY HERE, UM, IS ABOUT 123 OF THAT, UM, 218 MILLION. AND THE OTHER 95 CAN BE ATTRIBUTED TO CURRENT OPERATIONS. UM, AND PART OF THAT IS TO ADJUST BASE RATES, UM, TO RECOVER SOME OF THOSE, UH, COST INCREASES WE'RE SEEING THERE, AND THIS IS THE POINT I WAS MAKING EARLIER WITH OPTIONS TWO AND OPTIONS THREE. UM, UNLIKE THE REGULATORY CHARGE OR CBC WHERE IT'S, YOU KNOW, UNDERCOVERED, WE CAN OFTEN FLOAT THE DIFFERENCE FOR THREE YEARS. UM, YOU KNOW, WE, WE CAN ACT LIKE THE BANK, UM, TO STABILIZE THOSE RATES FOR OUR CUSTOMERS. THE POWER SUPPLY COSTS ARE SO HIGH NOW AND OUR CASH BALANCES ARE SO LOW THAT, UH, WE DON'T HAVE THAT OPTION THAT WITHIN AUSTIN ENERGY, UH, WE CAN'T FLOAT, WE CAN'T FLOAT, UM, THIS, THIS INCREASE AND STILL EXPECT TO MAINTAIN ADEQUATE CASH BALANCES. AND, UM, I THINK THIS IS THE END OF, OH, UM, SO THAT'S THE PSA. AND I KNOW SOME FOLKS WERE SAYING, SHOULD WE DO SOMETHING DIFFERENT? IS THERE THINGS WE CAN DO DIFFERENT IN THE FUTURE? UM, LIKE I SAID, YOU ARE THE CITY COUNCIL. YOU HAVE THE ABILITY TO CHANGE THAT TARIFF. THERE'S NO OTHER AGENCY YOU HAVE TO GO TO. YOU DON'T HAVE TO GO TO THE STATE THAT CHANGE THE PSA TARIFF. THAT'S WITHIN YOUR DISCRETION. UM, AND IN FACT, MANY UTILITIES DO IT DIFFERENTLY THAN WE DO. UM, SOME MAY DO IT BETTER, SOME MAY DO IT WORSE. AND I THINK WE HAVE AN OPPORTUNITY TO GO OUT AND LEARN WHAT PEOPLE ARE DOING AND, AND FIND SOME STORIES. SO, YOU KNOW, SOME OF OUR CHALLENGES WITH THIS, UM, REALLY IS, YOU KNOW, OUR POWER SUPPLY COSTS, THEY [02:50:01] ARE, UM, THEY'RE BECOMING MORE VOLATILE, AS YOU SAW THAT CHART WHERE THEY CHANGE FROM MONTH TO MONTH PRETTY SIGNIFICANTLY, THAT THE PRICE WE'RE PAYING AND THEY'RE TRENDING HIGHER, UM, THEY'RE NOT GETTING CHEAPER. UM, PART OF THAT AGAIN, IS NATURAL GAS PRICES. THE WAR IN UKRAINE, CUZ NATURAL GAS IS A COMMODITY. IT DROVE UP THE PRICE IN NATURAL GAS AROUND THE WORLD. UM, AS LONG AS ERCOT STILL USES ABOUT 42% OF ITS GENERATION OF NATURAL GAS THAT WILL BE, UM, UH, THE PACE CENTER FOR PRICES OF ELECTRICITY. UM, AND WE DON'T SEE THOSE, THEY'RE MODERATING, BUT WE DON'T SEE $2, TWO AND A HALF DOLLARS GAS LIKE WE SAW TWO YEARS AGO. WE DON'T SEE THAT OCCURRING ANYTIME IN THE, IN THE NEAR FUTURE. UM, ADJUSTING TO PSA, WE TEND TO DO IT DURING THE BUDGET SEASON. UH, IT MAKES SENSE. UH, WE'RE PART OF THE CITY, WE'RE, WE'RE SETTING RATES AND BUDGETS. BUT FOR AUSTIN ENERGY, AS I SHOWS YOU, THAT IS THE MOST VOLATILE TIME FOR US. UH, I'M TRYING TO FIGURE OUT, IT'S GONNA HAPPEN IN SEPTEMBER AND OCTOBER. AND THOSE ARE WHAT, WHAT WE CALL, YOU KNOW, THIS SEPTEMBERS OF SUMMER MONTH, OCTOBERS OF SHOULDER MONTH, AND IT CAN BE PRETTY VOLATILE. AND WE'VE BEEN, UH, YOU KNOW, WE'RE ALWAYS WRONG. UH, WE JUST HOPE WE'RE NOT WRONG BY MUCH AND SOMETIMES WE ARE WRONG BY MUCH BECAUSE OCTOBER TURNS INTO, UH, REALLY HOT OCTOBER, CUSTOMERS USE A LOT. UH, THE RATE HASN'T CHANGED YET. AND SO WE MAY SIGNIFICANTLY OVER OR UNDER RECOVER BASED UPON THOSE FACTORS. UM, SO IT IS HARD SOMETIMES TO FORECAST THAT, UM, CURRENT METHODOLOGY. UM, WE USE THE PRIOR YEAR'S COST TO SET THE CURRENT, THE NEXT YEAR'S RATES, RIGHT? AND SO HISTORICAL COST MAY NOT BE REFLECTIVE OF THE FUTURE. AND THIS IS REALLY IMPORTANT. WE'RE SITTING HERE TODAY, WHEN WE SET THE COST FOR 22, WE WERE LOOKING AT 21 COSTS, WHICH WERE PRETTY LOW AND IT WAS NOTHING REFLECTIVE OF WHAT WE ACTUALLY SAW THIS YEAR. AS I SHOWED YOU EARLIER. UM, WE DID NOT KNOW ABOUT THE WAR IN UKRAINE. WE DID NOT KNOW THAT SOMEONE WAS GONNA BE SO HOT. WE DID NOT HAVE AN INDICATION OF HOW, UM, THE, UH, OPERATIONAL POSTURE WAS GONNA CHANGE. IN ERCOT, UH, WE'VE SEEN A LOT MORE CONGESTION, UH, BECAUSE AS GENERATION MOVES AWAY FROM THE LOAD ZONES, UM, UH, RENEWABLES LIKE SOLAR AND WIND, UM, MAKES SENSE PUTTING 'EM IN PANHANDLE AND DOWN SOUTH TEXAS AND OUT IN WEST TEXAS BECAUSE THAT'S WHERE THE WIND BLOWS AND SUNSHINES. BUT THAT ELECTRICITY HAS TO TRAVEL TO THE MARKET, RIGHT? WE, THAT IS CHANGING EVERY YEAR ON US. AND SO, UM, IT MAY GIVE US PAUSE ABOUT JUST LOOKING AT THE HISTORIC RATE FOR SETTING FUTURE RATES. THE NEXT IS, UH, BY DOING THIS EVERY, UH, ONCE A YEAR BY, BY SETTING THE PSA, UM, THAT OVER OR UNDER, UH, COLLECTION CAN ACCUMULATE LARGE BALANCES. NOW WE HAVE A TRIGGER, IT SAYS PLUS OR MINUS 10% OF THE, OF THE PSA BUDGET. AND OF COURSE, AS A PSA BUDGET GETS BIGGER AND BIGGER CUZ THE COSTS GET BIGGER AND BIGGER. THAT 10% GETS LARGE IN TERMS OF DOLLARS AND IMPACTS CUSTOMER BILLS DIFFERENTLY. AND SO, UM, WAITING FOR THE WHOLE COURSE OF THE YEAR OR SIMPLY USING 10% MAY NOT BE THE RIGHT THING TO DO FOR OUR CUSTOMERS. AND FINALLY, UH, AS A, AS I POINTED OUT WITH MY ANALOGY WITH CARS IS, UM, WITHIN BASE RATES, UM, THOSE COSTS ARE LARGELY FIXED, MEANING THEY DON'T CHANGE WITH THE AMOUNT OF CONSUMPTION WITH KILOWATT HOURS. UM, THEY CHANGE OVER TIME BUT NOT CONSUMPTION. AND SO IT'S LIKE YOUR CAR PAYMENT. UH, AND SO THE BENEFITS OF CONSERVATION EFFICIENCY ARE REALLY IN THE POWER SUPPLY ADJUSTMENT. IF CUSTOMERS USE LESS, THEY USE LESS KILOWATT HOURS SO THAT WE BUY LESS POWER FROM ERCOT AND THAT LOWERS THE COST. UM, BUT THE PSA, THE WAY WE DO IT NOW, IT'S UH, FIXED RIGHT FOR THE COURSE OF THE YEAR. UM, AND IT'S FLAT. AND SO, UM, THE CUSTOMERS WHO ARE UM, USING 300 ARE USING 3000 KWH ARE PAYING THE SAME AMOUNT. AND SO THE PRICE SIGNAL ROY SHOULD BE IN THE POWER SUPPLY ADJUSTMENT AND LESS SO IN THE BASE RATES. UM, AND SO, YOU KNOW, SOME OF THE OPPORTUNITIES, I DON'T HAVE ANY SOLUTIONS AND I THINK THAT'S SOMETHING WE NEED TO WORK WITH THE, UH, THE EUC, UM, WITH, UH, AS WELL AS COUNCIL MAYBE THROUGH SOME WORK SESSIONS. BUT SOME OF THE THINGS WE MIGHT LOOK AT THIS YEAR IS EVALUATE THE FREQUENCY AT WHICH WE ADJUST THE PSA RATE. SO SOME UTILITIES DO IT EVERY MONTH, I'M NOT RECOMMENDING THAT, BUT THAT'S THEIR APPROACH. AND SO YOU GET MORE CHANGE, YOU KNOW, GRADUAL CHANGE FROM MONTH TO MONTH, UH, BUT YOU DON'T GET THE, THE LARGE DOLLAR CHANGE, RIGHT? CAUSE YOU'RE, YOU'RE KEEPING UP, YOU'RE NOT ACCRUING AND OVER AND UNDER. UM, AND IT'S MORE REFLECTIVE OF THE ACTUAL MARKET PRICE. SO I ALWAYS THINK ABOUT THIS [02:55:01] SUMMER, UM, OUR CUSTOMERS, UM, THAT WERE USING ENERGY, WOULD THEY HAVE BEHAVED DIFFERENTLY OR CONSERVED ENERGY? IF THEY KNEW THE ENERGY THAT THEY WERE SPENDING WAS COSTING 5.8 OR 5.90 CENTS RATHER THAN 2.8, WE WERE CHARGING THEM ON OUR BILL. UM, I KNOW I WOULD'VE, RIGHT? I WOULD'VE SET MY THERMOSTAT DIFFERENTLY OR SOME SOMETHING. BUT THE WAY WE DO IT NOW, THAT PRICING IS COMING TO THE CUSTOMER. SO THAT'S WHY YOU SEE THE SHOCK WHEN IT COMES OUT IS THEY DIDN'T KNOW. UM, UM, SO I, I THINK WE CAN MAYBE MODIFY THAT CONSERVATION BEHAVIOR WITH A BETTER PSA RATE, UM, EVALUATE CHANGING IT DURING NON-SUMMER MONTHS, WHICH IS, UH, COMMON FOR, UH, A LOT OF UTILITIES YOU USED TO DO. ONE IS IT'S LESS VOLATILE. YOU HAVE, YOU REALLY KNOW WHAT'S HAPPENING IN THOSE, UH, UH, THOSE HIGH VOLUME MONTHS. SO YOU HAVE A BETTER SENSE OF WHERE IT IS. AND ALSO IT DAMPENS THE IMPACT OF THE EFFECT BECAUSE, UH, WE'RE A SUMMER PICKING UTILITY. SO IF YOU USE IT IN NON-SUMMER AS LESS, LESS OF AN IMPACT ON THE CUSTOMERS, IT GIVES THEM MORE OF A CHANCE TO TO BUDGET, RIGHT? SO WE'RE NOT SEEING SUCH AN IMPACT IN THE MONTH. IT, IT, IT OCCURS. SO IT GIVES CUSTOMERS A BETTER CHANCE TO REACT TO THAT. UM, THE NEXT ONE, AS I POINTED OUT, WAS EVALUATE USING BOTH THE HISTORICAL AS WELL AS A FORWARD LOOKING POWER PRICES TO ANTICIPATE MARKET MOVEMENTS. AND SO, UH, AS I POINTED OUT, WE'RE STARTING TO SEE NATURAL GAS PRICES MODERATE, UM, NEXT YEAR. UM, AND SO SHOULD BE TAKING OUT INTO ACCOUNT WHEN WE'RE SETTING THE PSA SO WE DON'T END UP IN, UH, APRIL OR MAY HAVING A BIG OVER RECOVERY, RIGHT? SO WE'VE COLLECTED MORE THAN WE NEED FOR OUR CUSTOMERS. SO, UM, THAT'S, THAT'S ONE WAY TO TO LOOK AT THAT. AND FINALLY, UM, TIME OF USE RATES. SOME OF YOU HAVE, HAVE, HAVE HEARD ABOUT THAT AND, AND MAYBE IF YOU'RE NOT AN OFFICER ENERGY CUSTOMER, YOU MAY HAVE A UTILITY THAT OFFERS TIME OF USE. AND SO REALLY WHAT THIS MEANS IS THE PRICE OF THAT ENERGY, UH, CAN FLUCTUATE DURING THE DAY DEPENDING ON HOW MUCH IT COSTS US TO BUY DURING THE DAY. AND SO IF YOU LOOK, IT KIND OF MAKES SENSE IF YOU LOOK AT AROUND, UM, THREE O'CLOCK IN THE AFTERNOON ON MOST DAYS, ERCOT PRICES REALLY TEND TO RISE, RIGHT? BECAUSE PEOPLE ARE USING MORE ENERGY CUZ IT'S HOTTER FOR THE COOLING LOAD. UM, WE TEND NOT TO SEE, UH, WE TEND NOT TO SEE WIND DURING THOSE HOURS. IT, IT DIES DOWN AND IT COMES BACK IN THE EVENING. UM, UM, SOLAR TENDS, UH, BE CLOSE TO PEAK AND SO THAT HELPS. BUT REGARDLESS, THERE'S NOT ENOUGH SOLAR PENETRATION IN ICA YET TO MAKE A DIFFERENCE. IT'S ABOUT, UM, IF I REMEMBER CHART'S ABOUT 10% RIGHT NOW. SO IF WE SET A RATE THAT SAYS IF YOU CAN USE LESS POWER BETWEEN THREE OR FOUR O'CLOCK IN THE AFTERNOON AND MAYBE SEVEN OR EIGHT O'CLOCK IN THE EVENING, UM, IF YOU USE LESS POWER, YOUR BILL WILL BE LESS. RIGHT? AND SO, UM, YOU RUN YOUR DISHWASHER, YOUR WASHING MACHINE, UH, IN THE EVENING HOURS, UM, DON'T CHARGE YOUR CAR, UM, DURING THOSE HOURS, UH, ADJUST YOUR THERMOSTAT OR JOIN ONE OF OUR PROGRAMS OR SMART THERMOSTAT PROGRAM, WE CAN DO IT FOR YOU. UH, AND SO THOSE THINGS CAN HELP A CUSTOMER PAY LESS IN THAT VARIABLE RATE THAT THE PSA. UH, BUT THE STICKING POINT ON THIS IS WE'VE HAD TIME USE RATES HERE IN AUSTIN. WE'VE HAD PILOT PROGRAMS THAT YOU MAY BE AWARE IS THESE ARE, UM, OPTIONAL. SO CUSTOMERS CAN SIGN UP IF THEY WANT. AND WHAT WE SAW WHEN WE ANALYZED THE DATA WAS WE DID HAVE SOME CUSTOMERS SIGN UP. UM, YOU KNOW, MOSTLY ON THE COMMERCIAL SIDE. I THINK WE HAD ONE RESIDENTIAL CUSTOMER STILL ON TIME OF USE RATE, BUT WE FOUND WAS THE CUSTOMERS WHO SIGNED UP WERE THE RUNS WHO DIDN'T USE THE ENERGY DURING THOSE HOURS ANYHOW. AND SO THEY GOT A BREAK UNDER ENERGY, BUT WE DID NOT SEE AN EQUAL DECREASE IN OUR COST, RIGHT? AND SO THOSE, THAT COST OF THAT PROGRAM JUST INCREASE THE COST FOR EVERYONE ELSE. IF YOU MAKE IT MANDATORY, YOU MAKE EVERYONE RESPOND TO THE SAME PRICE SIGNALS. AND I KIND OF EQUATE IT TO LIKE, WE HAVE THE TIER STRUCTURE NOW, IT'S MANDATORY. UM, UM, SAME THING ON THE PSA IS THAT'S REALLY WHERE THE BENEFIT OF ENERGY EFFICIENCY AND CONSERVATION IS. IF YOU MADE IT MANDATORY, YOU'D HAVE CUSTOMERS RESPONDING TO THAT AND OVER TIME IT WOULD CHANGE THEIR BEHAVIOR AND YOU'D HAVE FOLKS MAKING INVESTMENTS IN ENERGY EFFICIENCY THAT COULD DRIVE THAT DOWN. UM, IT MAKES THINGS LIKE, UM, UH, OUR, UM, OUR THERMAL ENERGY MUCH MORE EFFECTIVE, RIGHT? THAT'S WHAT WE DO. SO WE, WE, WE, WE FREEZE WATER AT NIGHT ON OUR CHILLER PLANTS AND THEN WE, WE USE IT DURING A DAYTIME TO BUY DOWN THOSE RATES, UM, DOWNTOWN BUILDING THOSE HOME THAT THEY CAN DO THE SAME THING. SO, UM, I THINK THESE ARE SOME OPPORTUNITIES THAT WE CAN EVALUATE. I'M NOT RECOMMENDING ANY OF THESE RIGHT NOW. I HAVEN'T DONE THE ANALYSIS AND WE NEED TO HAVE THE DISCUSSION AND [03:00:01] SEE HOW IT IMPACTS OUR CUSTOMERS AND, AND, AND HEAR FROM THEM. BUT THESE ARE SOME OPPORTUNITIES THAT IF WE'RE GONNA CONTINUE TO SEE THESE VOLATILE AND HIGH ENERGY PRICES, THINGS THAT WE MIGHT BE ABLE TO DO TO DAMPEN THE IMPACT ON OUR CUSTOMERS. SO I'VE BEEN A WHILE TALKING. I'M GONNA, I APPRECIATE THAT. LET ME ASK SOME, SOME QUESTIONS THAT I GO TO LESLIE, UM, RIGHT AFTER THAT. UM, ON THE, UH, JUST A QUICK ON PAGE NINE OF THE REPORT YOU GAVE, THERE'S, UH, THE CONGESTION, UH, MAP THAT YOU HAD. YES. THOSE THREE DIFFERENT MAPS, ARE THOSE DIFFERENT TIME PERIODS? THAT'S CORRECT. WHAT WERE THE TIME PERIODS? UM, I CAN GET, ACTUALLY, I BELIEVE IT WAS ONE DAY, BUT I DON'T REMEMBER THE, THE INTERVALS. SO WE HAD PRESENTED TO THE COUNCIL ABOUT A YEAR AND A HALF AGO. SO THIS HAS HAPPENED ABOUT A YEAR AND A HALF AGO, BUT I CAN GET THAT FOR YOU. OKAY. JUST TO BE ABLE TO SEE WHAT THAT IS, TO BETTER UNDERSTAND THAT. I APPRECIATE THAT. UM, WITH RESPECT TO THE, OBVIOUSLY WE'RE, WE'RE PAYING COST INTO THE SYSTEM NOW IN ERCOT FOR THE BRAZO BANKRUPTCY. UH, AND FOR OTHER THINGS, THERE WERE, THERE WERE UTILITIES AROUND THE STATE THAT WERE NOT PREPARED AS MUCH AS WE WERE FOR THE, FOR THE WINTER STORM. UH, WE HAD DONE MORE HARDENING AND THAT'S WHY OUR GENERATION PERFORMANCE OUTPERFORMED THE STATE GENERALLY, BUT YET I'M NOT SURE WE'RE SEEING THE BENEFIT FROM THAT BECAUSE WE'RE ALSO NOW INDEMNIFYING THOSE FOLKS THAT, THAT THAT DID NOT PREPARE. IS THAT TRUE OR IS THAT THAT THAT'S TRUE. SO, UH, WE, WE DID GET A BENEFIT SO THAT THAT $104 MILLION OF, UH, REVENUE THAT WE GENERATED, THAT WAS A RESULT OF OUR PLANTS STAYING UP AND RUNNING WHEN OTHER PLANTS WENT DOWN. AND ALSO OUR SUPPLY OF GAS, UM, WAS NOT INTERRUPTED TO THE EXTENT THAT SOME OTHER FOLKS WERE. SO THEY COULDN'T GENERATE. SO THOSE TWO THINGS CAME TOGETHER AND WE WERE ABLE TO GENERATE REVENUE. AND AGAIN, THE PSA TARIFF SAYS YOU PASS THAT BACK OVER 12 MONTHS, WHICH WE DID LAST YEAR. WE HELD BACK THAT RECEIVABLE FROM, UM, FROM ASSOCIATED BRAZOS CUZ IT HAD NOT BEEN CONVERTED TO CASH YET. RIGHT. SO, UH, WE'RE STILL SITTING ON THAT RECEIVABLE AND I SHOWED YOU THAT ON THE MAP THAT, UM, THAT BANKRUPTCY IS, UM, POTENTIALLY COMING TO A CLOSE. AND SO, UH, WE THINK, UM, WE HAVE TO ELECT, UM, HOW WE'RE GOING TO HANDLE THAT RECEIVABLE. UH, WE'RE EVALUATING THE BENEFIT NOW. SO WE MAY GET THAT, UM, CASH AT LEAST, UM, AT LEAST HALF OF IT OVER THE COURSE OF NEXT SIX TO 18 MONTHS DEPENDING ON THE BANKRUPTCY. UH, BUT THERE'S SOME OF IT THAT BECAUSE WE'RE A MARKET PARTICIPANT, WE WILL NOT RECOVER AND THAT'S CALLED UPLIFT. AND SO, UM, OVER A COURSE OF TIME THEY ADD THAT TO EVERYONE IN ERCOT TO THEIR FEES AND THEY RECOVER THAT OVER A LONG PERIOD. AND SO YES, AS A MARKET PARTICIPANT, WE SHARE IN THAT RISK. THAT'S COOL. OKAY. YOU WOULD THINK THAT IF WE'RE, IF WE'RE SMOOTHING THAT COST AROUND AND THE WHOLE SYSTEM IS, IS, IS INDEMNIFYING PEOPLE THAT THAT, THAT WE WOULD ALSO, THE, THE, THE WHOLE STATE WOULD, WHICH HERE IN MAKING SURE THAT OUR GENERATION WAS FULLY COMPENSATED. BUT I UNDERSTAND THAT THAT'S A BANKRUPTCY ISSUE. SO THERE ARE TWO ISSUES HERE. WE HAVE THE, THE PSA OBVIOUSLY THAT WE'RE TALKING ABOUT THAT YOU PUT ON THE AGENDA FOR THURSDAY. THERE IS THE RATE INCREASE THAT'S HAPPENING AT THE SAME TIME. AND I RECOGNIZE THOSE ARE TWO DIFFERENT THINGS, BUT FOR THE MOST OF THE PEOPLE IN THE COMMUNITY, IT'S ONE THING THEY'RE LOOKING AT WHAT'S GOING TO HAPPEN WITH THEIR, WITH THEIR RATES NEXT YEAR. UH, AND THERE WERE A LOT OF CONVERSATIONS ABOUT THE IMPACT OF A $15 AN INCREASE. AND, AND NOW IN, IN THE LAST 10 DAYS, SEVEN DAYS, IT'S NOW APPARENT THAT IT, IT MIGHT NOT BE 15, IT COULD BE A, A $35 CHANGE. UH, AND I THINK THAT'S WHAT WE'RE ADDRESSING AND TRYING TO, TO FIGURE THAT. I APPRECIATE THE, THE, THE BACKGROUND AND THE EDUCATION THAT YOU'VE GIVEN US. UM, BUT I, I THINK THAT WE NEED TO TRY TO FIGURE OUT IF THERE'S A WAY TO SMOOTH THAT OUT OVER TIME. AND I APPRECIATE THE, THE OPTIONS THAT YOU HAVE GIVEN US, UH, FOR THAT. AND I HAVE SOME QUESTIONS ABOUT, ABOUT THAT. UM, I RECOGNIZE ON THE CHOICES THAT YOU GAVE US, UH, IN ORDER TO TO, TO BE ABLE TO DO IT INTERNALLY WITHIN, UH, AUSTIN ENERGY, UH, YOU, YOU CAN AND PUT IT ON A THREE YEAR PLAN, YOU CAN GET ROUGHLY A, UH, JUST UNDER A $5, UH, A MONTH SAVINGS OR $60 A YEAR SAVINGS. THAT'S GREAT. AND THEN YOUR OPTION TWO, THE OPTION THREE I UNDERSTAND ISN'T GOOD AND I UNDERSTAND THE REASON FOR THAT. THE QUESTION THAT I WOULD HAVE DIRECTED TO THE MANAGER IS THESE ARE ALL SOLUTIONS THAT ARE TRYING TO SOLVE THE PROBLEM INTERNAL TO AUSTIN ENERGY. AND I DON'T KNOW THAT, THAT IT'S, WE SHOULD NECESSARILY BE LIMITED THAT WAY. IF THE, UH, [03:05:01] RATE AS PROPOSED WENT THROUGH AS PROPOSED, THERE'S UH, 1,000,006 UP TO THEN THREE THREE AND THEN $5 MILLION OVER THE NEXT THREE YEARS. AND INCREASED DIVIDEND PAYMENT THAT COMES IN, UH, BECAUSE OF THE, UH, INCREASE IN THE TOTAL RATE CAPTURE, UH, THAT THE DIVIDEND CALCULATION IS, IS BASED ON. UM, BUT I DON'T KNOW WHETHER WE SHOULD BE LOOKING AT REINVESTING THAT DIVIDEND RECAPTURE THAT HASN'T BEEN PART OF OUR BUDGETS BACK INTO THIS PROCESS TO, TO CHANGE THAT NUMBER OVER THE THREE YEAR PERIOD OF TIME. I MEAN, ULTIMATELY WE'RE TALKING ABOUT AN IMPACT IN THE GENERAL FUND BUDGET. UM, WE, YOU KNOW, IN TERMS OF LOOKING AT THE BUDGET, YOU KNOW, WE HAD, UH, SOME ADDITIONAL, UH, DOLLARS, $35 MILLION THAT CAME TO US DURING THE BUDGET PROCESS THAT WE, THAT WE DISTRIBUTED BECAUSE THOSE WERE UNCOMMITTED FUNDS IN THE GENERAL FUND BUDGET. AND WE QUICKLY FOUND USES FOR, FOR, FOR THOSE DOLLARS. UM, HAD WE KNOWN THAT THIS WAS SOMETHING THAT WE WERE GOING TO HAVE TO TAKE CARE OF, I DON'T KNOW THAT THE CONVERSATIONS WOULD HAVE NECESSARILY BEEN THE SAME DURING THE BUDGET JUST A MONTH AGO. THAT MIGHT HAVE BEEN SOMETHING THAT WE MIGHT HAVE CONSIDERED PUTTING SOME OF THE GENERAL FUND, UH, AGAINST IN ORDER TO TO, TO IMPACT THE RATES. BUT I THINK IT'D BE IMPORTANT FOR YOU FROM AN ENTERPRISE STANDPOINT TO LOOK AT WHETHER THERE'S ANYTHING BASED ON FORECAST THAT, UH, MANAGER THAT YOU THINK THAT, THAT YOU CAN, CAN BRING TO BEAR. IT WOULD BE HELPFUL TO KNOW WHAT'S HAPPENING IN OTHER JURISDICTIONS DEALING WITH THE SAME THING. I I KNOW THAT SAN ANTONIO IS LOOKING AT 20, 30 MILLION OF EXTRA FUNDS RIGHT NOW AND THEY'RE GIVING IT DISCOUNT TO THEIR, UH, CUSTOMER BASE, UH, BECAUSE THEY HAVE A, A WINDFALL IN THEIR DISTRIBUTION OR THEIR DIVIDEND PAYMENT BECAUSE THEIR DIVIDEND PAYMENT IS CALCULATED ON THE COMBINED PSA AND RATE REVENUE. AND OURS IS JUST THE RATE REVENUE. WE DON'T TAKE A DIVIDEND ON THE PASS THROUGH COST. THEY DO. UM, BUT OTHER THAN SAN ANTONIO, WHICH IS NOW BECAUSE OF THAT IN A DIFFERENT POSITION THAN THAN US. WHAT ABOUT THE OTHER UTILITIES AROUND THE STATE? IS EVERYBODY GOING THROUGH THIS SAME KIND OF EXERCISE? JUST ABOUT RIGHT. SO YEAH, EVERYONE'S, UH, PRICES ARE INCREASING. I, I SHOWED YOU THAT THE TABLE THERE. SO THAT TABLE I SHOWED YOU THAT WAS USING EXISTING RATES. SO WE WENT OUT AND UM, UM, LOOKED AT ACTUAL RATES, PUBLISHED TARIFFS FROM, UH, OTHER UTILITIES. UM, THEY, AS I POINTED OUT, PEOPLE SET THEIR, LET'S SAY THEY CALL IT A POWER SUPPLY OR FUEL COST ADJUST DIFFERENTLY AND, UH, UH, PER ANALYSIS ELECTRIC, THEY UM, THEY DO THEIRS ON A MONTHLY BASIS. AND SO THEY DID TWO THINGS. ONE, I BELIEVE THEY HAVE A ADDER ON THEIR BILL JUST FOR WINTER, WINTER STORM UY. AND SO SOME OF OUR CITIZEN AUSTIN PAY P C BILLS, THEY SEE AN ADDER THAT'S JUST ASSOCIATED WINTER STORM UY, UM, COST. AND THEN THEIR PSA UM, GETS ADJUSTED, UH, EVERY MONTH TO, TO REFLECT THE ACTUAL COST. SO, UM, YOU'D HAVE TO LOOK AT THE CUMULATIVE AMOUNT, BUT WHAT WE'RE SEEING IS THAT THEIR COSTS ARE INCREASING BY, UH, A SIMILAR FASHION, UM, AS WE ARE. CUZ WE, WE ALL BUY POWER FROM MECO, THE POWER COMES FROM THE SAME PLACE, WE ALL USE THE SAME TRANSMISSION GRID. UM, AND SO REALLY THE QUESTION FOR OUR CUSTOMERS IS, IS, YOU KNOW, FOR YOU'RE A P C CUSTOMER, THEY TEND TO USE MORE ENERGY THAN AUSTIN ENERGY CUSTOMERS ON AVERAGE. AND SO THEIR, THEIR BILLS ARE HIGHER. UM, OKAY. SO I'D APPRECIATE LOOKING AT THAT. MY, MY DISCOMFORT WITH VOTING ON THURSDAY IS THIS IS A PRETTY SIGNIFICANT DECISION TO BE MADE AND WE REALLY HAVEN'T HAD A LOT OF TIME TO DISCUSS WHAT THE, WHAT THE OPTIONS OR VARIABILITY IS ON THE OPTION TWO THAT YOU HAVE. THERE ARE CERTAIN ASSUMPTIONS THAT ARE BUILT IN WITH RESPECT TO PSA COST GOING FORWARD. UM, I DON'T KNOW IF IT MAKES SENSE FOR US ON A MONTHLY BASIS TO RECALCULATE THAT THREE YEAR EQUATION, UH, ALWAYS WITH THAT THREE YEAR ENDING POINT, BUT BASED WITH WHATEVER THE INFORMATION IS. SO THE, THE ADDITIONAL CHARGE FOR A PSA IN ORDER TO BE ABLE TO COVER NOT ONLY THE PAYMENT WE HAVE TO MAKE, BUT THE FUTURE PAYMENT IS GOING TO CHANGE OVER THAT THREE YEAR PERIOD OF TIME AS WE GET MORE INFORMATION, AS WE GET DEEPER INTO THAT THREE YEAR PAYMENT. SO I DON'T KNOW IF WE SHOULD BE SETTING SOMETHING NOW THAT'S JUST FOR THREE YEARS OR WHETHER WE SHOULD BE, BE HAVING SOME KIND OF A VEHICLE OR FUNCTION, UH, IN THE EVENT IS THAT IT'S VARIABLE, WHICH GOES TO YOUR STATEMENT EARLIER ABOUT LONG TERM. WE SHOULD BE LOOKING AT WHETHER OR NOT OUR PRICE PRESSURES, [03:10:01] UH, SHOULD SWITCH FROM THE RATE TO THE PSA. I THINK THAT'S A CONVERSATION WORTH HAVING, BUT IT'S NOT JUST A LONGER TERM CONVERSATION. IT PROBABLY IS IS IN SOME MEASURE A SHORTER TERM CONVERSATION IN TERMS OF WHAT HAPPENS WITH THIS CHARGE THAT PEOPLE NOW ARE GONNA ANTICIPATE AND READ. THAT IS A, IS A, IS A THREE YEAR IMPACT. SO THAT'S A A SECOND QUESTION THAT I HAVE WITH RESPECT TO THE, THE IMMEDIATE ACTION THAT WE WOULD BE, UH, POTENTIALLY, UM, UM, UH, UH, TAKING. UM, AND THEN THE, THE, THE LAST QUESTION IS WHAT DO YOU, HOW IS, IS THERE INJURY OR PREJUDICE TO AUSTIN ENERGY IF WE POSTPONE THIS QUESTION FOR TWO WEEKS? SO IS TO BE ABLE TO ASK MORE QUESTIONS OR SEE ADDITIONAL OBSERVATIONS FOR THE MANAGER TO TAKE A LOOK AT WHETHER THERE'S AN ENTERPRISE ELEMENT TO BE ASSOCIATED WITH THIS AS WELL? DOES HOW, WHAT KIND OF PREJUDICE COMES FROM A TWO WEEK DELAY? SURE. SO, UM, OBVIOUSLY THE, THE LONGER WE WAIT TO ACTUALLY CHANGE THE RATE, THE LARGER THE UNDER RECOVERY BECOMES CUZ WE'RE NOT COLLECTING IT IN, IN THE ACTUAL RATE. SO, UM, RIGHT NOW OUR CALCULATIONS ARE SET TO, UH, CHANGE RATES ON NOVEMBER 1ST, AND SO THEY START GETTING BILLED AT THAT AND THE CASH WOULD START FLOWING IN DECEMBER. SO, UH, I WOULD HAVE TO GET WITH OUR FOLKS THAT PROGRAM THIS INTO CCMB, UM, AND SEE IF WE DEFERRED THAT TWO WEEKS, UM, COULD THEY DO THAT? YOU KNOW, SO CHANGE RATES NOVEMBER 15TH RATHER THAN THE FIRST. UM, THAT'S A POSSIBILITY. UM, IT WOULD SLIGHTLY INCREASE THE AMOUNT OF UNDER OR POTENTIALLY UNDER RECOVERY BECAUSE I'M ASSUMING OCTOBER 31ST IS THE OTHER APPEAR. SO NOW IT'D BE NOVEMBER 15TH, RIGHT? RIGHT. SO, UM, IT WOULD NOT BE, UM, SIGNIFICANT IN TERMS OF THE DOLLARS. WE'RE TALKING ABOUT TWO MORE WEEKS. UM, I THINK WE COULD ACCOMMODATE THAT IN TERMS OF, UM, UH, WORKING WITH CITY COUNCIL, UH, TO GIVE YOU MORE TIME TO, UM, HELP US SOLVE THE PROBLEM. SO IF YOU COULD HELP US UNDERSTAND WHAT THE RAMIFICATIONS OF THAT WOULD BE, SO THAT ON THURSDAY WE HAVE THAT INFORMATION TO BE ABLE TO CONSIDER IF YOU COULD GET IT TO US AHEAD OF THE MEETING ON THURSDAY SO WE HAVE A CHANCE TO BE ABLE TO INDICATE, SO THEN WE COULD LET US KNOW TOMORROW OR LATER TODAY WITH THAT CALCULATION. I WOULD ASSUME EVERYTHING WOULD SLIDE TWO WEEKS SO YOU'D RIGHT. PROVE THE PSA RATE TWO WEEKS LATE. WE'D IMPLEMENT TWO WEEKS LATE AND WE'D, UH, COLLECT TWO WEEKS LATE. SO THAT'S WHAT I'LL ASSUME. OKAY. SO CHECK IN, SEE WHAT THAT IS. RIGHT. BUT THERE, BUT THERE'S SOMETHING LONG TERM MANAGER TO, TO HAVE SUCH A SUBSTANTIAL INCREASE IN PEOPLE'S BILLS THAT COME TO US AND SAY, YOU HAVE TO ACT WITHIN SEVEN DAYS ON THIS BEGS THE QUESTION OF, OF HOW CAN IT POSSIBLY BE THAT, THAT WE SUDDENLY HEAR ABOUT THIS AND EXPECTED TO TAKE ACTION IN SEVEN DAYS. UH, AND, AND THIS COUNCIL CAN'T BE READY FOR THAT. THE COMMUNITY CAN'T BE READY FOR THAT. NO ONE CAN PLAN FOR THAT. THERE'S GOT TO BE, UH, A DIFFERENT AND BETTER WAY FOR US TO BE ABLE TO DEAL WITH THIS SITUATION. PERFECT. THANKS MAYOR. UM, UM, MARK, THANKS FOR THE REALLY EXCELLENT PRESENTATION TELLING THIS STORY. IT WAS REALLY IMPORTANT WHEN I HOPE OUR, OUR REPORTER FRIENDS ARE CATCHING ALL THE, THE SPECIFICS AND THE NUANCES AND GETS THAT OUT TO THE COMMUNITY. THAT'S PART OF WHY WE WANNA CONTINUE THESE CONVERSATIONS. AND ON THE 11TH WE'LL HAVE, UM, AT THE OVERSIGHT COMMITTEE MEETING, WE'LL HAVE A, A LIST OF ADDITIONAL WORK SESSIONS AND PUBLIC HEARINGS IN ADVANCE OF THE TAX OF THE, UM, THE RAPE CASE DISCUSSION. AND AS THE MAYOR POINTED OUT EARLIER TODAY, THESE ARE TWO SEPARATE ISSUES, BUT THEY'RE COMING, UH, AT THE SAME TIME AND IN THE PUBLIC'S MIND, THEY'RE, THEY'RE WOVEN TOGETHER. SO WE WILL HAVE MORE OPPORTUNITIES FOR THESE DISCUSSIONS AND WE'LL SCHEDULE THEM IN WAYS THAT I HOPE THAT EVERYONE IS ABLE TO PARTICIPATE ONE WAY OR ANOTHER. AND MAYOR, HOPEFULLY YOU AND I WILL DEFINITELY BE ON THE DIAS WHEN THE CONVERSATIONS TAKE PLACE. UM, MR. DOMBROSKI, YOU MENTIONED LIQUIDITY AND HOW IN, IN ONE OF YOUR TALKING POINTS, ONE AND HOW AUSTIN ENERGY DOESN'T HAVE MUCH OR ANY, AND THE FINANCIAL MARKETS HAVE NOTICED THAT. AND I THINK YOU SAID THAT THAT WAS A PRIMARY REASON WHY WE WERE DOWNGRADED. NOT THAT WE'RE IN A BAD PLACE, BUT WE DID GO FROM, WAS IT AAA TO AAA? A TO DOUBLE A MINUS DOUBLE A TO DOUBLE A MINUS. UM, WE'RE A PUBLIC UTILITY, SO WE CAN'T BOOK PROFITS. THAT'S GREAT. WE DON'T HAVE ANY PROFITS. RIGHT. WE COULD HOWEVER, CREATE RESERVES. YES. SO, UM, YOU MENTIONED WE'RE GOING TO THE BOND MARKET NEXT SPRING TO [03:15:01] REFINANCE SOME BONDS AND WE'RE HOPING FOR FAVORABLE RATES. SO I WANNA ASK ABOUT A RESERVE FUND. I THINK I, I'M REMEMBERING, UM, THAT COUNCIL MAY HAVE LOOKED AT, CREATE PRIOR COUNCILS TO THIS ONE MAY HAVE LOOKED AT CREATING RESERVES FOR AUSTIN ENERGY, BUT THAT THAT DIDN'T HAP CAN YOU GIVE US A LITTLE SURE. OVER SUMMARY OF WHAT THAT RIGHT. CAUSE I THINK PREVIOUS COUNCILS AT SOME POINT MAY HAVE LOOKED AT CREATING A RESERVE FUND FOR AUSTIN ENERGY AS A HEDGE TO SPIKING COSTS, BUT THAT DID NOT HAPPEN. IF YOU COULD DESCRIBE THAT. I, WELL, IF I REMEMBER, I THINK YOU'RE REFERRING TO WITHIN RATES. OKAY. SO IN 2012, UM, WHEN THEY SET THE BASE RATES, THEY PUT IN AN AMOUNT IN RATES TO COLLECT RESERVES. SO THAT MONEY WAS TAKEN AND PUT INTO THE RESERVES, UH, SPECIFICALLY. SO IT WAS ABOVE AND BEYOND THE CURRENT OPERATING COST. BY THE TIME WE GOT TO THE 2016, UH, RATE REVIEW, UH, WE HAD ADEQUATE CASH. UH, WE WERE HEALTHY, WE HAD, UM, UPGRADES FROM OUR, OUR, OUR AGENCIES. AND, UM, WE HAD, UM, UH, POSITIVE MARGINS. AND SO THOSE MARGINS REALLY MOVED BASED UPON WEATHER. BUT AT THAT TIME, WE DECIDED THAT WE NO LONGER NEEDED TO COLLECT, UM, RESERVE AMOUNTS IN RATES. AND SO WE REMOVED THAT AND THAT HELPED LOWER THE RATES BACK IN 2016. OKAY. SO WE NO LONGER COLLECT ANYTHING TO PUT IN RESERVES. THE ONLY THING WE PUT IN THERE IS IF WE HAVE A WARM YEAR AND PEOPLE, AGAIN, IT'S BASE RATES, SO IT'S FIXED. RIGHT? AND SO THEY, THEY USE A LOT, THEY HAVE TIERED RATES, THEY GENERATE MORE CASH. I TAKE THAT CASH, I STICK IT IN, UH, IN WORKING CAPITAL IN RESERVES. UM, AND WHEN THINGS ARE GOING BAD AS THEY HAVE THE LAST TWO YEARS, I TAKE THAT MONEY OUT OF WORKING CAPITAL AND I USE IT TO PAY ONGOING BILLS IN THE HOPES OF COLLECTING IT FROM FUTURE RATES. SO, UM, RIGHT NOW OUR RATES DO NOT HAVE ANYTHING FOR RESERVES. OKAY. AND THAT MAY BE SOMETHING THAT WE'D WANT TO, TO LOOK AT YOUR SLIDE 22. UM, OPTION TWO IS THE GRADUAL RECOVERY OF THE UNDER COLLECTION. DOES THAT ASSUME NO NEW SPIKES IN, UM, IN FUTURE YEARS? RIGHT. SO THIS STILL USES THAT SORT OF HISTORICAL COST. AND I, I THINK ONE THING I'D LIKE TO RECOMMEND GIVING WHERE WE'RE GOING HERE IS, UM, EITHER THROUGH THE OVERSIGHT COMMITTEE OR MAYBE THE CITY COUNCIL MEETING CAR VALID OF TIME, ALLOW US TO TALK TO YOU ABOUT WHAT'S GOING ON THE MARKET. AND IT MAY BE RATHER THAN A 10% ADJUSTMENT. FOR EXAMPLE, IF WE GET THOSE FUNDS FROM BRAS, FROM THE BRAS BANKRUPTCY FLOW THROUGH TO US FROM ERCOT, IT MIGHT ONLY BE A ONE OR 2% CHANGE, BUT MAYBE WE COME BACK AND WE ADJUST THE, THE PSA DOWNWARD BY ONE OR 2%, GET THAT BACK TO OUR CUSTOMERS IMMEDIATELY AS OPPOSED TO HANGING ONTO IT. THINGS LIKE THAT WE CAN DISCUSS DURING THE COURSE OF THE YEAR. UM, IF GAS PRICES ARE GOING DOWN, MAYBE WE ADJUST, REFLECT THAT. SO I THINK WE, WE HAVE SOME OPTIONS GOING FORWARD RIGHT NOW, I CAN'T DO ANYTHING ABOUT THE THE BILL WE'VE ALREADY PAID FOR, BUT GOING FORWARD, I THINK THAT'S SOME OF MY OPTIONS. LET'S, LET'S WORK TOGETHER TO TRY TO MODERATE THE, THE VOLATILITY IN THIS PSA. SOME OF THE, UM, CRITICISM THAT WE'RE HEARING SINCE THE MEMO CAME OUT AND AND THROUGH THE TAX RATE DISCUSSION IS THAT IT SEEMS LIKE AUSTIN ENERGY AND THE CITY OF AUSTIN IS NO LONGER REWARDING PEOPLE WHO ARE CONSERVING. AND SO, UM, AND THAT CONCERNS ME BECAUSE I THINK ALL OF US ARE, ARE ENTIRELY COMMITTED TO OUR, UM, LOWER, UH, TO OUR, OUT TO OUR ALTERNATIVE FUELS, UH, POLICIES AND ONLY WANT TO EXPAND THEM. UM, IN SOME OF THE CONVERSATION THAT THE DISCUSSION THAT YOU HAD, YOU MENTIONED THAT THE PSA COULD POSSIBLY BE WHERE WE REWARD CONS CONSERVATION, MAYBE INSTEAD OF IT BEING FIXED, THERE IS SOME KIND OF A REBATE FOR THOSE PEOPLE WHO ARE USING A LOWER AMOUNT OF MONEY SO THAT SOMEHOW WE FIGURE INTO THAT CALCULATION, UM, THE REWARD FOR CONSERVATION. I DON'T KNOW WHAT THAT WOULD LOOK LIKE, BUT THAT WOULD BE SOMETHING I THINK WE WOULD NEED. AUSTIN ENERGIES AND PROBABLY OUR, OUR ENERGY ADVOCATES ASSISTANCE IN LOOKING AT THAT. AND THAT'S, THAT'S PROBABLY WHERE THE BENEFITS OF CONSERVATION EFFICIENCY FLOW THROUGH YOU, YOU KNOW, ENERGY EFFICIENCY IS USING FEWER K H TO COMPLY TO DO THE SAME TASK, RIGHT? SO YOU PUT IN MORE EFFICIENT HVAC OR, UH, DOUBLE PAINT OR TRIPLE PANE WINDOWS OR MORE INSULATION. SO YOU KEEP THE ROOM THE SAME TEMPERATURE BUT YOU'RE USING LESS. K H CONSERVATION IS NOT DOING A TASK TO SAVE ENERGY. SO THAT'S LIKE TURNING YOUR THERMOSTAT DOWN OR TURN THE LIGHTS OFF. WHEN WE GET THE EA NOTICES, BOTH OF THOSE DO THE SAME THING. THEY REDUCE K H AND WHERE THAT BENEFIT, UH, RESIDES IS WHEN THE PSA. AND SO AN EXAMPLE IS TIME OF USE RATES. IF WE COULD HAVE TIME OF USE RATES [03:20:01] THAT ARE MANDATORY, WHEN CUSTOMERS DO THAT DURING THOSE HIGH PRICED HOURS, THEY WOULD IMMEDIATELY SEE A, A PASS. THEY WOULD, THEY WOULD SEE THE BENEFITS OF THE REDUCTION ONE'S IN, IN BASE RATES LIKE IT IS NOW. WE DON'T SEE A REDUCTION IN THOSE FIXED COSTS WHEN CUSTOMERS USE LESS ENERGY. THE POLE COSTS THE SAME, THE WIRE, THE TRUCK, THE PEARSON SALARY. UM, AND SO IT DOESN'T FLOW THROUGH THE PSA. AND I I POINT OUT WHEN PEOPLE HAVE BEHAVED DIFFERENTLY, IF THEY GOT THE ACTUAL PRICE IN JULY RATHER AT 5.80 CENTS RATHER THAN THE 2.8, WE WERE CHARGING THEM, I THINK THEY WOULD'VE AND THEY WOULD'VE PAID LESS AND POTENTIALLY WE WOULD'VE PAID LESS IN, IN, IN COST TO GET ENERGY TO OUR LOAD ZONE. SO, UM, I THINK THOSE ARE THINGS WE CAN EVALUATE AND WORK ON AND, AND I DO TOO. COULD YOU DO THAT IF WE POSTPONE FOR TWO WEEKS, COULD YOU COME BACK IN TWO WEEKS AND SAY, HERE'S A LET'S DO OPTION TWO, BUT LET'S DO IT IN A WAY THAT PROMOTES CONSERVATION WITH READ TEARS? YEAH, I, I, I DON'T TWO WEEKS THAT, THAT'S A LOT OF MATH IN THINKING. UM, I, I DON'T THINK I COULD GET THAT DONE IN TWO WEEKS, BUT I COULD COME BACK DURING THE COURSE OF THE YEAR AND BRIEF THE EUC AND THE COUNT, UH, OVERSIGHT COMMITTEE ON SOME OPTIONS. I WOULD HATE TO, UM, UH, MAKE A, A VIOLENT MOVE IN ONE DIRECTION OR THE OTHER AND AND NOT UNDERSTAND THE, THE UNINTENDED CONSEQUENCES OF THAT. EVEN IF WE WEREN'T DECIDING IT AT 10 13, IT'D BE NICE TO ADVANCE THAT CONVERSATION. YES. SO THE COMMITTEE MIGHT BE ABLE TO UNDERSTAND DIRECTIONALLY WHERE WE MIGHT GO. KATHY, AND THEN I JUST HAD ONE LAST QUESTION. OH, I'M SORRY. THAT'S OKAY. UM, I, I KNOW THAT WE REVIEW THE PSAS AND THE PASS THROUGHS, UM, REGULARLY, BUT WE ADJUST THEM JUST THAT ONE TIME A YEAR. AND SO MAYBE WE, AND I THINK YOU TALKED ABOUT THIS IN, IN YOUR PRESENTATION, MAYBE LOOK AT, UH, CONSIDERING THE PSA A LITTLE BIT MORE OFTEN AND WE CAN BALANCE OUT MAYBE SOME OF THE INCREMENTAL CHANGES IN THE BILLS AS OPPOSED TO THE ANNUAL ADJUSTMENT. SO THAT MIGHT ALSO BE SOMETHING THAT WE LOOK AT. SO NOT JUST THE GRADUALISM OF REPAYING OR FILLING THE GAP OVER THREE YEARS, BUT ALSO HAVING SOME MORE NIMBLE ADJUSTMENTS TO THE PSA OVER THE YEAR. THANKS. I HAVE A LOT OF QUESTIONS, BUT I THINK SOME OF THEM MAYBE ANSWERED ONCE I REVIEW THIS ALL MORE CAREFULLY. THANK YOU VERY MUCH FOR THIS REALLY, REALLY DETAILED INFORMATION. I THINK THIS IS VERY, VERY HELPFUL. I WOULD SUGGEST THAT WE ALSO FIGURE OUT A WAY TO TRANSLATE ALL OF THIS TO KIND OF A ONE PAGER THAT WE CAN GIVE TO CONSTITUENTS WHO ARE, WHO ALSO HAVE A LOT OF QUESTIONS ABOUT IT. I THINK THE MEMO GETS CLOSER TO KIND OF DESCRIBING IT IN, IN, UM, MORE GENERAL TERMS. OKAY. AND AS I THINK ABOUT HOW I'M GONNA HAVE TO TRANSLATE IT, I THINK IT'S GONNA BE ONE MORE LEVEL UP. UM, BUT I ALWAYS APPRECIATE AND I DIVE INTO THE DETAILS, SO I REALLY APPRECIATE THAT YOU PRESENTED TO US TODAY. THIS REALLY DETAILED LEVEL PRESENTATION TOOK TO KIND OF START WHERE MY COLLEAGUES ENDED. I SUPPORT MAKING THOSE CHANGES TO THE POWER SUPPLY ADJUSTMENT TARIFF. AND WOULD THE APPROPRIATE PLACE TO DO THAT BE IN THE UPCOMING RATE PROPOSAL? I KNOW THE MAYOR, I THINK IF I UNDERSTOOD WHAT YOU WERE SAYING, THAT, THAT THERE MIGHT BE OPPORTUNITIES TO RESHUFFLE HOW WE, HOW WE ASSESS THE POWER SUPPLY ADJUSTMENT, BUT I WOULD ASSUME THAT THAT GETS BUILT INTO, INTO IT FOR PROSPECT GOING FORWARD. NOT THAT'S CORRECT, BUT AGAIN, YOU GUYS, YEAH, WE HAVE OPTIONS FOR HOW WE DEAL WITH THIS SITUATION NOW, BUT IN, IN TERMS OF KIND OF FIGURING OUT A NEW PARADIGM FOR HOW WE'RE ASSESSING IT IN THE FUTURE, I WOULD THINK WHAT, WHEN AND HOW DO WE APPROVE THE TARIFF FOR THE POWER SUPPLY ADJUSTMENT? IS, IS THAT IN, IS THAT ON AN ANNUAL BASIS IN OUR BUDGET OR IS IT ALSO IN THE RATE WILL WE ALSO BE ASKED TO APPROVE IT IN THE UPCOMING RATE PROPOSAL? RIGHT. SO, UM, A LITTLE BIT OF HISTORY. SO HISTORICALLY WE DID THIS WITH THE BUDGET. SO WHEN YOU APPROVE, UH, THE BUDGET, IT INCLUDED OUR TARIFF SCHEDULE IN THE PASS THROUGHS. UM, WHEN WE, UM, CHANGED THE, UH, BUDGET SCHEDULE, WE, WE, WE, UM, IT'S A MONTH EARLIER NOW FOR US, RIGHT? UH, BECAUSE WE HAVE TO GO TO VOTERS. UM, THAT CAUSED A LOT OF PROBLEMS FOR US. AND BECAUSE I WAS POINTED OUT, IT'S VERY VOLATILE, RIGHT? IN THE MONTH I WAS REALLY SEPARATELY, I'M REALLY TALKING ABOUT THE POLICY. OH, THE HOW WE, HOW WE STRUCTURE THAT TARIFF. BECAUSE I THINK, I THINK YOU'VE, YOU'VE HIGHLIGHTED, I DIDN'T MEAN TO CUT YOU OFF, BUT I, THE, WE'VE HIGHLIGHTED A FEW THINGS THAT WE SHOULD PROBABLY LOOK AT HOW FREQUENTLY WE ADJUST THE PSA, KIND OF WHAT THE, THE TRIGGERS ARE THAT MAYBE 10% ISN'T REALLY KIND OF GETTING AT IT ANYMORE. THE MAYOR SUGGESTED MAYBE SOME OTHER ELEMENTS THAT MIGHT BE FACTORED INTO THE PSA. SO WHEN AND HOW ARE WE GOING TO ADDRESS KIND OF THE POLICY? ARE POLICIES FOR THE PSA, IS THAT SOMETHING YOU WANT US TO DO [03:25:01] OUTSIDE OF THE RIGHT REVIEW PROCESS? OR IS THAT SOMETHING THAT WE WOULD ORDINARILY DO WITHIN THE RATE REVIEW? IT SEEMS LIKE WE'VE TALKED ABOUT THOSE POLICY ISH ISSUES IN THE RATE PROPOSALS THEMSELVES AS YOUR POINT. THEY, THEY, THEY DO WORK IN TANDEM, BUT THEY ARE SEPARATE. I WOULD RECOMMEND WE DO IT OUTSIDE OF THE RATE REVIEW PROCESS. UM, UM, BECAUSE THEY BEHAVE DIFFERENTLY. THEY'RE ASSESS DIFFERENTLY. BUT I GET IT, THE CUSTOMER PAYS ONE BILL, UM, AND THEY, THEY SEE IT, BUT THE POLICIES REALLY SHOULD BE HANDLED INDEPENDENTLY OF EACH OTHER. THEY RECOVER DIFFERENT COSTS, THEY BEHAVE DIFFERENTLY. UH, THEY'RE SET FOR DIFFERENT TIME HORIZONS. SO THEY, THEY REALLY SHOULD BE DIFFERENT. SO IN TERMS OF THE, OKAY, THANKS. SO IN TERMS OF THOSE RECOMMENDATIONS THAT YOU'VE MADE ON PAGE 24, I GUESS, UM, AMONG CLEAR KIND OF HOW QUICKLY WE WANT TO COME TO SOME CONCLUSIONS ON THOSE, ON WHICH, WHICH OF THOSE, WHEN DO YOU WANT DIRECTION FROM US ON WHICH OF THOSE YOU SHOULD MOVE FORWARD IN EVALUATING AND OR CHANGING? I MEAN, WE CAN BEGIN WORKING ON US RIGHT AWAY. OKAY. UM, AND SO WE DO UPDATES DURING THE OVERSIGHT COMMITTEE, UM, AS WELL AS OUR UC WILL WORK WITH THEM TO HELP CRAFT THESE POLICIES, UM, AND OR RECOMMENDATIONS FOR POLICY CHANGES. SUPER, THANK YOU. AND I HAVE TO LOOK THROUGH AND REALLY THINK ABOUT THOSE THREE DIFFERENT OPTIONS THAT YOU'VE PRESENTED US WITH, BUT IN SUMMING UP KIND OF WHERE, WHERE AND HOW WE GOT HERE, AND I THINK IT'S PRETTY, I APPRECIATE, I APPRECIATE THAT. YOU KNOW, AS I UNDERSTAND WHAT YOU'RE SAYING, SO MUCH OF, SO MUCH OF THIS INCREASE IS REALLY OUTSIDE AUSTIN ENERGY. IT'S REALLY DRIVEN TO A GREAT EXTENT, MAYBE ALMOST WHO BY ERCOT AND OR CUTT CHANGES AND THE GAS MARKET. GOOD. IS THAT A FAIR ASSESSMENT? I DON'T WANNA BLAME ERCOT ITSELF AS A BODY, BUT IT'S, IT'S THE COMPETITIVE MARKET WE'RE IN AND HOW IT'S STRUCTURED. FOR THE LONGEST TIME THE MARKET WAS FOCUSED ON A BIAS TOWARDS PRICE. THEY'RE REALLY FOCUSED ON LOW COST POWER. AND WE, WE, WE ENJOYED THAT FOR MANY YEARS. NOW THE BIAS IS MORE TOWARDS RELIABILITY AND SO THAT DRIES UP THE COST AND THAT'S WHAT WE'RE SEEING. AND SO IF, IF I HAD TO SUMMARIZE THOUGH A GOOD DEAL, SOME OF THIS POWER SUPPLY ADJUSTMENT INCREASE IS A RESULT OF OUR NOT HAVING BEEN PAID 20 PLUS MILLION THAT WE'RE OWED, THAT'S NOW WRAPPED UP IN BANKRUPTCY, BANKRUPTCY PROCEEDS. YES. THAT'S PART OF IT, YES. SO WE'RE OWED MONEY, I WOULD SAY THAT I WOULD GUESS, YOU KNOW, I I WOULD SAY WE DEFINITELY SHOULD TRY TO SPREAD THAT OUT AND NOT ASSESS THAT TO OUR RATE PAYERS RIGHT NOW SINCE WE HAVE A REASONABLE EXPECTATION THAT THAT MONEY'S GONNA COME IN JUST AS AN OBSERVATION. THE OTHER, THE OTHER ELEMENTS, THE CONGESTION COST, WHICH I'M STILL TRYING TO UNDERSTAND. THE THIRD, UM, NATURAL GAS PRICES WHICH ARE RESPONDING IN PART TO THE STORM, THE STORM CUZ INVENTORY WERE DOWN. UM, IT, IT'S, IT'S A, IT'S A FREE MARKET FOR NATURAL GAS. IT'S NOT SET. AND SO THEY WILL CHARGE MORE IF THEY CAN. UM, AND THAT'S WHAT WE'RE SEEING. UM, IT'S ALSO BECAUSE IT'S A GLOBAL BOND WITH LIQUIFIED NATURAL GAS, KNOWING GOING, GOING GLOBALLY, EVEN THOUGH WE HAVE A LOT OF GAS HERE IN TEXAS, IT DOESN'T NECESSARILY COME TO OUR MARKET. RIGHT? SO IT'S GOING DOWN TO HOUSTON BEING SHIPPED OUT. SO ALL THOSE THINGS PUT PRESSURE ON GAS. AND THEN FOURTH IS THE RELIABILITY CONCERNS RESULTING FROM ERCOT PERFORMANCE. I HAVE A QUESTION FOR YOU ABOUT SOME OF THOSE COSTS. AND THEN, AND THEN THE FIFTH IS THE OVER COLLECTION WITH REGARD TO THE FOURTH, SOME OF, AND AGAIN, I'VE GOTTA GO BACK TO THE DETAILS TO REALLY UNDERSTAND THIS, BUT ONE OF THE THINGS YOU WERE TALKING ABOUT AS THE CONSERVATIVE OPERATING PRACTICES THAT ARE NOW BEING ARE INC ARE ARE GOING TO COST MORE AND ARE BEING NOW ASSESSED TO DIFFERENT UTILITIES LIKE AUSTIN ENERGY, ONE OF THEM WAS HAVING THAT, I'M JUST GONNA PUT IT IN MY OWN LANGUAGE, KIND OF REDUNDANT POWER. UM, I THOUGHT THAT WE PARTICIPATED, I THOUGHT AUSTIN ENERGY WAS ONE OF THE ENTITIES THAT THAT IS A DESIGNATED EXTRA REDUNDANT POWER PERSON ENTITY. IS THAT ACCURATE? AND IS THERE ANY COST SAVINGS FOR US? UM, I, I'VE FORGOTTEN THE TERM, BUT IT WAS, THERE WAS A VERY INTERESTING NEWSPAPER ARTICLE AND THEN WE DISCUSSED IT AT OUR, YOU BLACK START. YEAH, THAT'S EXACTLY WHAT I'M, THANK YOU FOR TAKING MY INARTICULATE UM, GENERALIST LANGUAGE AND TRANSLATING IT INTO THAT. THANK YOU. UM, YEAH. SO THIS IS NOT, IS THAT WHAT WE'RE TALKING ABOUT OR NO, NO, NOT, NOT AT ALL. AH, OKAY. SO THIS IS, UH, YOU CAN IMAGINE IF, UM, UH, THIS IS REALLY RESERVES. AND SO IF YOU NEED A THOUSAND, UH, MEGAWATTS TO SERVE CUSTOMERS AND YOU HAVE 1,100 MEGAWATTS THAT'S BID INTO THE MARKET, UM, YOU'RE GONNA HOLD A HUNDRED IN RESERVE, RIGHT? AND SO ERCOT MIGHT SAY, I NEED, I WANNA HOLD 400, RIGHT? SO THEY'LL GO DOWN THERE AND THEY'LL ANOTHER GENERATOR [03:30:01] SAY, I NEED YOU, I'M GONNA PAY YOU TO BE ON STANDBY RESERVE. SO YOU'RE NOT GONNA SELL POWER, YOU'RE JUST GONNA BE IN RESERVE. AND THE WAY I'M GONNA PAY YOU IS BY ASSESSING A FEE ON EVERYONE IN THE MARKET. AND WHAT THAT ASSURES IS IF WE HAVE A GENERATOR GO DOWN THAT BREAKS OR, OR TRIPS OFFLINE, THAT WE HAVE ENOUGH GENERAT GENERATION THAT CAN IMMEDIATELY RESPOND AND SO THE CUSTOMERS AREN'T INTERRUPTED WITH POWER. THANK YOU FOR EXPLAINING THAT. THAT SOUNDS SO MUCH LIKE THE BLACK STAR, BUT THANK YOU FOR IDENTIFYING THAT. IT'S A LITTLE BIT DIFFERENT. UM, OKAY. SO I THINK JUSTIN, IN MY GENERAL ASSESSMENT, IT SOUNDS LIKE A LOT OF THESE COSTS ARE BEING DRIVEN BY, BY FORCES OUTSIDE OF AUSTIN ENERGY. AND SO THAT'S CONCERNING. I HOPE WE CAN TELL THAT MESSAGE REALLY CLEARLY TO OUR RATE PAYERS WHO NEED TO HAVE CONFIDENCE IN THE WORK THAT, THAT YOU ALL ARE DOING AND, AND ARE DOING REALLY WELL. AND TWO, THANK YOU FOR COMING FORWARD WITH THOSE OPTIONS THAT I, THAT I HOPE WE CAN DISCUSS TO REALLY FIGURE OUT HOW TO, HOW TO LESSEN THE IMPACT ON OUR RATE PAYERS AND DEFINITELY, UM, ASSESS GOING FORWARD, ASSESSING THAT PSA ON A MORE FREQUENT BASIS, AS YOU'VE SUGGESTED WITH DIFFERENT KINDS OF TRIGGERS WITH POSSIBLY A DIFFERENT PARADIGM FOR ASSESSING IT. IS MAKES A LOT OF SENSE TO ME. THANKS. UM, I AGREE WITH ALL OF YOU. I THINK WE DO NEED MORE FEEDBACK AND DISCUSSION IN THE COMMUNITY, BUT EARLIER IN OUR PRESENTATION, UM, YOU'D MENTIONED AS A STANDARD THAT YOU LIKE TO KEEP 150 DAYS CASH ON HAND, BUT CURRENTLY WE ONLY HAVE 125 DAYS. COULD YOU MAYBE EXPLAIN TO US HOW QUICKLY WE'RE RUNNING THROUGH THAT CASH ON HAND AND WHAT A DELAY MIGHT HAVE ON THE CASH ON HAND? I JUST WANNA UNDERSTAND THAT MORE. YEAH, AND I WISH I HAD A GREAT ANSWER FOR YOU. THERE'S A LOT OF CASH THAT FLOWS THROUGH AUSTIN ENERGY WITH BILLS EVERY WEEK. BUT ONE OF THE, THE SLIDES I SHOWED YOU JUST AS A COMPARISON IS THAT, UM, I, I DON'T HAVE A FUTURE PROJECTION FOR YOU, BUT IF YOU LOOK IN THE LAST TWO YEARS, UM, UH, WE USED ABOUT 213 MILLION OF OUR CASH TO FUND ONGOING OPERATIONS BETWEEN THE BASE TRADE SPEED AND THE POWER SUPPLY AND REGULATORY. UM, AND RIGHT NOW WE HAVE ABOUT 182 DAYS OF CASH ON HAND. NOW I DO HAVE RESERVES AND I CAN ASK, SO ACCESS THOSE RESERVES BY COMING TO COUNCIL AND SAYING I NEED IT. BUT YOU KIND OF THINK OF THAT AS A, A FIRE ALARM, RIGHT? I'M NOT GONNA DO THAT UNLESS I HAVE A A, A SERIOUS PROBLEM GOING ON. WE'RE GETTING CLOSE TO THAT. UM, BUT THE BIGGER PROBLEM IS IF WE DON'T ADJUST RATES NOW, I CAN'T REPLENISH THAT CASH, UH, RATES DON'T DO THAT. AND SO WE WILL CONTINUE TO LOSE CASH, UM, AND BY FUNDING ONGOING OPERATIONS, UNLESS I'LL FIND SOME WAY TO REDUCE THE COST. UM, AND I, WE'VE TRIED THAT, UM, EVERYTHING'S GOING UP, UM, INFLATIONARY COSTS, SO I DON'T SEE THEM. WE AT THE BEST WE CAN KIND OF, YOU KNOW, MODERATE THEM, BUT IT, IT'S TOUGH. BUT TWO YEARS TOPS, MAYBE 18 MONTHS IS UM, WOULD BE A VERY BAD SITUATION I SHOULD INTERVIEW. OKAY, THANK YOU. UM, THANK YOU. I HAVE A WHOLE SLEW OF QUESTIONS. UM, LET ME START BY ASKING, YOU KNOW, IF YOU WERE TO USE OUR CURRENT BASE RATE FOR THEIR CURRENT RATE FOR THE PSA, HOW MUCH MORE ARE WE TRYING TO RECOVER? WHAT IS THAT DOLLAR AMOUNT? I'M SORRY, I'M NOT FOLLOWING. SO I'M TRYING TO UNDERSTAND. YOU'VE THROWN OUT A LOT OF NUMBERS AND THERE'S NOT BEEN A WHOLE LOT OF CLARITY FRANKLY, IN WHAT IS FULLY CAUSING THIS IN TERMS OF HOW MUCH TO ASCRIBE TO WHICH. AND SO YOU, YOU HAD AN EXAMPLE OF CONGESTION ON THE RATES THAT WAS OVER A HUNDRED MILLION DOLLARS HIGHER, UM, THAN BEFORE. AND YET, YOU KNOW, AND WE HAD A HUNDRED MILLION UNDER RECOVERY AND AS I TRIED TO PUT ALL OF THESE DIFFERENT NUMBERS TOGETHER AND TRIED TO FIGURE OUT HOW MUCH OF THIS IS CHANGES IN THE MARKET, HOW MUCH IS CHANGES IN THE MARKET THAT ARE DUE TO AIR CUT NOT MOVING THINGS, HOW MUCH IS DUE TO THINGS THAT WE DIDN'T ACCOUNT FOR IN AUSTIN ENERGY? I CAN'T DO THAT AT THIS POINT IN TIME. I DON'T EVEN KNOW HOW MUCH MONEY I'M TRYING TO GO FOR AS MY AIM. WE HAVE, YOU KNOW, WITH, AND, AND I UNDERSTAND THERE'S A CERTAIN AMOUNT OF VARIABILITY TO THAT, BUT YOU KNOW, WHEN WE DO THE RAPE CASE, THERE'S A REVENUE REQUIREMENT AND WE'RE SHOOTING TO TRY TO RECOVER THAT MUCH REVENUE. WHAT IS THE EQUIVALENT WITH THE PSA TO THAT REVENUE REQUIREMENT? AND IF YOU CAN'T TELL ME NOW IF YOU CAN PROVIDE IT AFTER. YEAH, I, I CAN TELL YOU THAT THE TOTAL NUMBER THAT WAS ON SLIDE 17, UM, SO THAT'S THE 639.2 MILLION. OKAY. UM, AND I CAN GIVE YOU A BREAKDOWN HOWEVER THAT MAY, UH, INVOLVE SOME COMPETITIVE INFORMATION IN YOUR ACCOUNT MARKET. SO I, I CAN'T GIVE IT TO YOU IN PUBLIC, UH, BUT I CAN PROVIDE THAT FOR YOU CAUSE IT INVOLVES OUR GENERATION AND THE COST. BUT IS THE CHANGE THE 288, I MEAN, CUZ YOU WERE ASSUMING THAT YOU'RE DOING THE TARIFF OVER THE 12 MONTHS. I MEAN IT JUST, THERE THERE ARE A LOT OF [03:35:01] RIGHT. SO THAT'S THE AMOUNT OF INCREASE, RIGHT? IS THAT YOU'RE ASKING FOR? THAT'S WHAT WE'RE TRYING TO GET AND THAT INCLUDES THE 104 MILLION IN BEING CAPTURED IN 12 MONTHS AS OPPOSED TO BEING SPREAD OUT OVER THREE YEARS. GREAT. SO THAT WOULD BE, UM, THE 77.3 MILLION MM-HMM. . UM, AND THE 8.9 IS THE AMOUNT THAT WE WOULD SPREAD OUT OVER THREE YEARS. SO THAT'S OUR ACTUAL UNDER RECOVERY AND OUR PROJECTED FOR, UM, AND THAT 8.9 WOULD INCREASE IF WE DEFER FOR TWO YEARS OUR, EXCUSE ME, TWO WEEKS. RIGHT. AND MAYBE A SMALL AMOUNT, MAYBE 9 MILLION OR 9.1, BUT, UH, THAT, THAT NUMBER WOULD GET BIGGER. OKAY. UM, AND THEN THERE'S, THERE'S UM, 140 MILLION SWING THAT'S JUST BECAUSE OF YU AND WE GAVE THE MONEY BACK BECAUSE IT'S 69 MILLION LESS AND NOW IT'S 69 MILLION MORE. YOU'RE SAYING WE HAVE TO, I MEAN, IS A CHANGE OR IS IT, I MEAN I'M JUST TRYING TO FIGURE OUT VERY CLEARLY, YOU KNOW, IF I HAD TO EXPLAIN TO SOMEBODY WHAT YEAH, THERE'S A LOT WHERE THESE PIECES ARE AT THIS POINT. THE STORY YOU'RE TELLING US IS NOT CLEAR ENOUGH FOR ME TO GO AND TALK TO MY AVERAGE CONSTITUENT AND SAY, THIS IS WHY WE NEED TO RAISE YOUR RATES AND THESE ARE, THESE ARE THE CAUSES OR I THINK EVEN FOR A REPORTER TO BE ABLE TO, UM, ARTICULATE THE CAUSES AND IT IS, IS MORE COMPLICATED THAN SIMPLY THE PRICE OF NATURAL GAS WENT UP. AND SO, AND I UNDERSTAND IT'S A COMPLICATED, BUT WE, WE NEED TO BE ABLE TO GET TO THAT POINT, WHICH IS I THINK WHAT COUNCIL MEMBER TOPO WAS GETTING AT. COULD WE PAUSE ON THIS FOR JUST A MINUTE? UM, WE CAN, BUT I HAVE A LOT OF OTHER QUESTIONS. YEAH, I CAN TRY TO TAKE ANOTHER CUT AT TRYING TO DESCRIBE THESE. IT CAN GET QUITE COMPLEX, UH, BECAUSE FOR EXAMPLE, IN PRICE OF NATURAL GAS, YES WE, WE BUY POWER FROM ORCO THIS ROOM, BUT WE ALSO SELL POWER TO ORCO, RIGHT? SO THERE'S AN OFFSET, BUT THEN YOU TAKE IT BACK, WE HAVE CONGESTION, SO THE PRICE I'M SELLING IT MIGHT BE DIFFERENT THAN THE PRICE I'M BUYING. UM, SO ALL THESE THINGS KIND OF COMPLICATE THAT, BUT WE WILL DO A BETTER, WE'LL TRY TO DO A BETTER JOB OF KIND OF, UH, PUTTING THESE IN BUCKETS THAT MAY BE A LITTLE BIT EASIER TO TO TO, TO COMPREHEND. OKAY. UM, COUNCIL MEMBER TOVA REQUESTED THAT WE GO THROUGH THIS AND, AND, AND I'M, I'M, I THINK THAT WOULD BE GOOD. I'M WONDERING IF I SHOULD SURFACE MY QUESTIONS CUZ AT SOME POINT I THINK WE'RE GONNA HAVE TO BREAK FOR LUNCH AND MAYBE THAT WOULD GIVE YOU TIME TO HAVE SOME ANSWERS. DO YOU WANNA JUST FOR SOME OF THE MISSED YOUR QUESTIONS, YOU'RE READY? UM, WE CAN TRY. UM, CUZ I DON'T KNOW IF YOU'LL HAVE ANSWERS BY THIS AFTERNOON ON PAGE 19 WHERE YOU TRY TO PROVIDE US A COMPARISON WITH OTHER UTILITIES. UM, YOU DO SO BASED ON THEIR AVERAGE CONSUMPTION THAT THEIR UTILITY EXPERIENCES AND WHAT THE COSTS ARE. AND I UNDERSTAND THAT'S PROBABLY WHAT THEY GIVE YOU, YOU KNOW, OFF THEIR WEBSITE. AND SO THAT'S WHAT YOU HAVE TO USE. BUT IF I'M A RATE PAYER IN AUSTIN, I DON'T CARE THAT IF I WAS IN SAN ANTONIO I WOULD BE PAID, IF I WAS USING 10 99, I WOULD BE PAYING, YOU KNOW, OVER 140. I CARE WHAT I WOULD BE PAYING IF I WAS USING THE SAME AMOUNT OF ENERGY I'M USING IN AUSTIN. AND SO THIS IS NOT USEFUL FOR ME TO UNDERSTAND BECAUSE I WANNA KNOW IF I HAD THE SAME ENERGY USAGE THERE, HOW MY RATE COMPARES, NOT WHAT THE AVERAGE CONSUMER IS, UM, OTHERWISE THAT'S NOT FAVORING THOSE WHO HAVE CONSERVED AND IT'S NOT USEFUL TO ME AS A CONSUMER. SO I'D LIKE TO SEE ANOTHER LAYER OF THIS INFORMATION WHERE WE ARE REALLY GETTING A SENSE OF IF YOU WERE THE AVERAGE CONSUMER HERE IN AUSTIN AND YOU WERE PAYING THE RATES IN THOSE OTHER CITIES, WHAT WOULD YOU BE PAYING? BECAUSE OTHERWISE I CAN'T, I CAN'T ASSESS THAT BECAUSE I'M NOT, I'M I'M USING, YOU KNOW, 250 KILOWATTS LESS SO IT'S NOT A COMPARABLE IN MY VIEW. AND WE'VE, WE, WE, WE CAN DO THAT. UM, ONE OF MY CAUTIONS AGAINST THAT IS UTILITIES DESIGN RATES BASED UPON CONSUMPTION LEVELS AND SO THEY'RE GONNA HAVE DIFFERENT CUSTOMER CHARGES. UM, AS FAR AS I KNOW OF THESE GROUPS WE'RE ONLY WITH TIERED RATES. UM, AND SO THEY WILL SET THAT AVERAGE MUCH HIGHER BECAUSE THEY'RE ASSURED OF THAT GENERAT THAT THAT LOAD. SO YOU CAN GET SOME REALLY SKEWED RESULTS BY STANDARDIZING, YOU KNOW, AT, AT ALL EIGHT 60. BUT WE CAN CERTAINLY DO THAT FOR YOU. UH, WE CAN ALSO TRY TO BREAK DOWN WHAT A PER RATE IS, BUT ALL UTILITIES, FOR EXAMPLE, ALL OF OURS ARE IN OUR POWER SUPPLY COSTS ARE IN THE PSA. UH, OTHER UTILITIES BAKE SOME OF THAT INTO THEIR, THEIR, THEIR BASE RATES. SO IT'S ALWAYS TOUGH TO COMPARE, UH, WE THINK THIS IS THE FAIREST COMPARISONS, BUT A, A TYPICAL CUSTOMER PAYS TO USE ELECTRICITY IN THEIR CITY OR THEIR, THAT THAT UTILITIES UH, SERVICE AREA. BUT WE CAN CERTAINLY DO THIS AT EIGHT 60 AND PROVIDE THAT FOR YOU. [03:40:01] RIGHT, BUT THIS IS COMBINING THE BASE RATE AND THE PSA YES, AS I UNDERSTAND IT. SO I'M NOT SURE THAT THAT VARIATION OH, IT DOES CERTAINLY CUZ UM, EIGHT 60 IS ONLY TO THE SECOND TIER WITHIN AUSTIN ENERGY. AND SO THE SECOND TIER IS ABOUT, UM, ABOUT 50% COST OF SERVICE, ABOUT 50% COST OF SERVICE. IF YOU'RE A UTILITY AND YOUR AVERAGE CUSTOMERS USING 1200, UM, YOU CAN HAVE A MUCH HIGHER RATE AT, AT AT AT 1200 AND COLLECT ALL YOUR REVENUE. WE'RE NOT COLLECTING THIS HERE. SO THE, THE TIER STRUCTURE AND THE CUSTOMER CHARGE AND THE TYPICAL BILL ARE ALL INTERRELATED. UM, I UNDERSTAND THEY'RE INTERRELATED, BUT I NEED MORE INFORMATION. I DON'T KNOW WHAT THE RIGHT FORMAT IS SO THAT I CAN GO TO MY CONSTITUENTS AND EXPLAIN WHAT WE'RE DOING RELATIVE TO WHAT OTHER FOLKS ARE DOING IN OTHER JURISDICTIONS AND WHETHER THEY ARE ALSO FACING AND HAVING TO PASS ON THE SAME COSTS BECAUSE IF THE COSTS THAT WE'RE PASSING ON ARE FROM THE PRICE OF ENERGY AND IF THEY'RE FROM ARE CAUGHT CONGESTION, PRESUMABLY OTHER UTILITIES HAVE TO PASS THINGS ON SIMILARLY. OKAY. AND THAT'S NOT A PICTURE I CAN YET CONVEY. IT'S, IT'S POSSIBLE I COULD DO A, I DON'T KNOW WHAT THE RIGHT WAY TO DO IT IS, BUT THIS DOESN'T, PERHAPS WE COULD LOOK AT THESE SAME UTILITIES AND SEE IF WE CAN FIND OUT WHAT THEY WERE CHARGING TWO YEARS AGO OR A YEAR AGO AND COMPARE THEIR INCREASE TO OURS AT THE SAME LEVEL OF CONSUMPTION THAT WOULD ISOLATE CHANGES IN COSTS, WHETHER IT'S FACE RATE OR PSO. YEAH. AND I'M NOT, WE TO A PARTICULAR METHOD. MY GOAL IS TO BE ABLE TO MAKE THAT COMPARISON AND, AND, UM, UNDERSTAND WHERE WE ARE RELATIVE TO OTHERS IN THE FACE OF THE SIMILAR, SIMILAR SHOCK SO THAT I CAN SEPARATE OUT, YOU KNOW, IT, IT'S A REALLY CHALLENGING STORY TO GO AND SAY, WELL, WE ACTUALLY MADE MONEY DURING YU BUT NOW YOU'RE PAYING FOR IT IN THIS WAY, UM, BECAUSE WE HAVE TO ADJUST YOUR RATE. AND IT'S JUST, IT'S, IT'S, IT'S A CHALLENGING WAY TO HAVE TO, TO EXPLAIN THINGS. UM, OKAY. UM, ON PAGE 22, UM, YOU HAD PROVIDED, UM, FOR OPTION TWO, THE THREE YEAR GRADUAL RECOVERY, UM, WHEN YOU WERE SPEAKING, YOU MADE IT SOUND LIKE THERE MIGHT BE INCREASES OVER TIME TO THAT NUMBER SO THAT IT DIDN'T STICK AT 1285. UM, ABSENT A MAJOR SHIFT IN PSA ABOVE AND BEYOND WHAT YOU'RE ANTICIPATING, WOULD THE 1285 BE THERE OVER THE THREE, THE THREE YEAR PERIOD OR WOULD IT, ARE YOU, IS YOUR PROJECTION THERE WITH IT RISING OR IS WITH IT CONSTANT? IT WOULD, IT WOULD RISE. SO EACH YEAR WE WOULD, ASSUMING IT WASN'T OFFSET BY SOME SORT OF REVENUE OR COST REDUCTION THAT, THAT I COULD APPLY TO THE PSA, IT WOULD RISE. SO WE, WE TAKE ANOTHER THIRD OF IT, THE VOLUME YEAR AND THE THIRD OF IT THE LAST YEAR. OKAY. SO WHEN YOU COME BACK WITH MORE INFORMATION, IF WE CAN HAVE THAT MORE CLEARLY, UM, LAID OUT, THAT WOULD BE HELPFUL. UM, OKAY. UM, IT SEEMS TO ME THAT WE HAVE TWO DIFFERENT POLICY DECISIONS THAT WE NEED TO FOCUS ON THAT ARE RELATED THAT MAY NOT HAPPEN AT THE SAME TIME. ONE IS WHAT WE'RE DOING IN THE SHORT RUN TO MAKE SURE THAT WE BEGIN TO RECOVER THESE COSTS AND WE HAVE TO MAKE LEAST A SHORT RUN DECISION. IT MAY NOT LAST FOR VERY LONG IF WE COME UP WITH SOME OTHER POLICY OR, OR WHATEVER THROUGH THE RATE CASE OR THROUGH, UM, HAVING THE DISCUSSION ABOUT HOW WE ADJUST THE PSA RATES. BUT WE NEED TO MAKE A SHORT RUN DECISION ON WHAT WE'RE DOING IN NOVEMBER FOR THE RATES. UM, AND THEN THERE'S THIS QUESTION OF OUR POLICY FOR THE PSA, WHAT TRIGGERS LOOKING BACK AT IT, UM, I AM REALLY INTRIGUED BY THE TIME OF USE APPROACH. UM, AND I THINK THAT IS REALLY IMPORTANT FOR CONSERVATION, UM, AS WELL AS, YOU KNOW, FOR, FOR OUR SMOOTHING OUR COSTS OUT CETERA. UM, SO I DEFINITELY WANNA HAVE THAT CONVERSATION, BUT I JUST WANNA ACKNOWLEDGE THAT I THINK WE HAVE TWO DIFFERENT SITUATIONS. UM, CAN YOU EXPLAIN A LITTLE BIT MORE ABOUT THE AIRCO RECEIVABLE? UM, YES. SO WHEN WE, UM, DURING WATER STORM UY, WHEN WE WERE PRODUCING, UM, ALL OF THAT POWER, UM, AGAIN, WE, WE SELL OUR POWER ORCO AND WE BUY IT ALL FROM ERCO. AND SO AT THE END OF THE DAY, UM, ERCOT SAID WE HAD, UH, A NUMBER OF UTILITIES INCLUDING RAYBURN AND BRAS DID NOT PAY ACOT. THEY SAID, I CAN'T PAY. AND SO WHAT THEY DO IS THEY TAKE THAT, THAT IT'S CALLED A SHORT PAY AND THEY SPREAD AMONGST ALL OF THE, UH, PARTICIPANTS THERE. SO EVERYONE GETS A PIECE OF THE SHORT PAY [03:45:01] THAT ERCOT DID. SOCOS JUST A CLEARING HOUSE IN THAT WAY. UM, OVER TIME, UH, WE'VE HAD PARTICIPANTS EITHER LEAVE THE MARKET, MEANING THEY, THEY LEFT THEIR RECEIVABLE WITH ERCOT AND THAT GETS TURNED INTO AN UPLIFT AND THEY SPREAD THAT OVER A NUMBER OF YEARS, A SMALL AMOUNT EACH YEAR. RAYBURN, UM, USED THE STATE SECURITIZATION, THEY LAST SUMMER, UM, THEY, THEY PASSED LEGISLATION AND THAT THAT SECURITIZED SOME OF THAT DEBT. SO THEY WERE ABLE TO, UH, ACCESS THAT. THEY PAID OFF THEIR DEBT TO ERCOT. AND SO ERCOT GAVE US OUR MONEY. BRAS WAS DIFFERENT. THEY DECLARED BANKRUPTCY SOON AFTER THE STORM. AND SO THEY, UM, THAT RECEIVABLE TO ERCOT WAS TIED UP INTO BANKRUPTCY COURT AND IT'S BEEN PLAYING OUT OVER THE LAST YEAR, YEAR AND A HALF. SO AT THIS POINT WE HAVE IN THE BOOKS A, UM, I'M GONNA GET THE NUMBER WRONG, A 48 OR A 49 MILLION RECEIVABLE, UH, FROM ERCOT. UM, BUT WE ALSO KNOW THAT, UM, WE'RE GONNA GET SOME AMOUNT OF UPLIFT ASSOCIATED WITH, UH, WITH ERCOT. SO, UH, THAT 16 MILLION AND THEN THAT'S ABOUT 23, 20, 20 4 MILLION. I'LL GET YOU THE EXACT NUMBERS THERE. SO THAT'S WHAT WE'RE SITTING ON THE BOOKS HERE, UM, IS RECEIVABLE. WE DON'T KNOW EXACTLY WHAT WILL HAPPEN UNTIL WE, UH, ELECT OUR OPTIONS, WHICH, UH, ERCOT AND, UM, WE RECEIVE THOSE FUNDS. WE DON'T KNOW WHEN WE'RE GONNA RECEIVE THEM. SO UNTIL THAT TIME IT'S JUST A RECEIVABLE ON THE BOOKS. OKAY. SO IF YOU WERE TO CREDIT THAT, THAT WOULD REDUCE THE 2 88 0.3, WHAT WAS THE 20 SOME? CORRECT. SO MILLION, IF I, IF I GAVE THE CUSTOMERS CREDIT NOW FOR THAT RECEIVABLE, THAT WOULD, I WOULD HAVE TO USE CASH, UM, FROM WORKING CAPITAL BECAUSE I HAVEN'T COLLECTED THAT CASH YET FROM MECO. SO, UM, I WON'T GET THAT UNTIL THE BANKRUPTCY COURT SETTLES. SO WE WOULD HAVE TO USE AND FURTHER DEPLETE SOME OF OUR CASH IN ORDER TO PASS THAT BACK TO CUSTOMERS. THAT'S WHY WE'VE BEEN SITTING ON IT. AND WHAT I SUGGESTED WAS WE'RE GETTING CLOSE WITH, UM, THE, THE BANKRUPTCY DECISION. ONCE THAT'S MADE, PERHAPS WE COME BACK IMMEDIATELY MAKE AN ADJUSTMENT, EVEN IF IT'S ONLY ONE OR 2%, WE GIVE THAT BACK TO CUSTOMERS IMMEDIATELY, BUT SITTING HERE TODAY, IF I DID IT NOW, IT FURTHER DEPLETE CASH. RIGHT. BUT THERE MAY BE A WAY THAT, I MEAN, I'M NOT, I'M NOT SUPPORTIVE OF REDUCING OUR GENERAL FUND TRANSFER, BUT THERE MAY BE SOME WAYS FOR TEMPORALLY SMOOTHING THINGS OUT WITH OTHER RESERVES THAT WE HAVE. UM, SO YOU DON'T DEPLETED THEM? I DON'T, I I HAVE TO THINK THOSE THROUGH. UM, BUT I, BUT I THINK THERE MIGHT BE A WAY TO, TO USE OUR OTHER RESERVES IN THE ENERGY OR, WELL, I, I, ONE COULD IMAGINE, UM, AGAIN, I DON'T WANNA REDUCE THE GENERAL FUND TRANSFER, BUT THE, OR DIVIDEND, WHATEVER YOU'RE CALLING IT. UM, BUT I DO THINK THERE MAY BE A TEMPORAL OPPORTUNITY THERE, UM, TO THINK ABOUT, UM, SMOOTHING THAT SO THAT WE COULD BUILD THAT INTO OUR, TO OUR SOLUTION. UM, I THINK THOSE ARE MY QUESTIONS FOR, FOR RIGHT NOW. THANK YOU, MAYOR. UM, I JUST WANTED TO MAKE A COUPLE COMMENTS ABOUT CLIMATE CHANGE. UM, AND THEN I'LL, I'LL BE DONE WITH MY PIECE AND MAYBE WE CAN GET SOME LUNCH. UM, BASED ON SOME OF THE INFORMATION THAT MR. DON BROSKI, UM, PROVIDED IN HIS PRESENTATION TODAY, IT, IT OCCURS TO ME WE COULD BE DOING SO MUCH MORE TO COMBAT OUR WEATHER EXTREMES THAT ARE UNDERMINING OUR COMMUNITIES. IF WE WEREN'T HAVING TO DEAL WITH CLIMATE DENIERS IN OUR STATE LEADERSHIP WHO ARE FAILING TO ACT, FOR EXAMPLE, IF TEXAS WERE TO RAMP UP ITS SOLAR POWER INVESTMENT MORE THAN THE CURRENT 10% OF STATEWIDE ENERGY PRODUCED, I THINK THE 10% WAS THE NUMBER THAT, AND CORRECTLY IT'S, UH, 6%. I'M LOOKING AT, OKAY, IT'S 6% IS, UH, SOLAR AS OF SEPTEMBER 7TH. IF THE STATE OF TEXAS WERE TO RAMP UP THE CURRENT 6% OF STATEWIDE ENERGY PRODUCED, THEN WE'D HAVE ANOTHER BUFFER TO SOFTEN THESE PRICE INCREASES. AND THEN AS IN MOST THINGS, THE CITY OF AUSTIN CANNOT DO ALL OF THIS WORK ALONE. WE NEED A MORE RESILIENT GRID SYSTEM FROM STATE LEADERSHIP TO HELP WITH THE INEVITABLE SHOCKS AND STRESSORS. I'M LOOKING AT THE STATE OF TEXAS AND ITS LEGISLATIVE LEADERS FOR SUPPORT AND ASSISTANCE, AS I EXPECT ALL AREAS OF OUR STATE ARE DOING AT THIS POINT. WE'RE IN A TOUGH SPOT. NO MUNICIPALITY ACROSS THE STATE CAN CARRY SUCH SIZABLE FINANCIAL BURDENS ALONE. THANKS, MAYOR. OKAY. I THINK, UM, ONE, I'M ANXIOUS TO SEE WHETHER THE PREJUDICE AND WHAT THE IMPACT IS OF DELAYING TWO WEEKS SO WE CAN [03:50:01] CONSIDER OPTIONS. I THINK THAT ONE OF THE, THE MOST PERSUASIVE ARGUMENTS TO ME IS I'M HEARING THE DEBATE ABOUT THE RAPE CASE AND GOING TO A FLAT FEE IN THE RATE CASE THAT'S GOING ON IS THAT WE LOSE THE, THE PRICE INDICATION TO CUSTOMERS BY GOING TO A FLAT RATE IF WE WERE TO CONSIDER MAINTAINING A PRICE INDICATION, BUT MOVING IT TO THE PSA AS OPPOSED TO THE FLAT RATE, WHICH IS WHAT I HEAR YOU RECOMMENDING TODAY, POTENTIALLY AS A, UM, A WAY TO HANDLE THE PSA BECAUSE THAT'S SOMETHING THAT'S, THAT IS A COST TIED MORE TO HOW MUCH POWER SOMEBODY USES. THAT DISCUSSION, I THINK MAY HAVE NOT ONLY THE BENEFIT OF HELPING US FIGURE OUT HOW WE'RE DOING THE PSA TARIFF CHANGE, BUT ALSO TAKING INTO ACCOUNT THE, THE, THE ISSUE THAT'S BEEN RAISED WITH RESPECT TO THE RATE CASE BECAUSE WE WOULDN'T BE LOSING THE INDICATION. WE, WE JUST BE MOVING IT TO THE MORE APPROPRIATE PLACE POSSIBLY. AND I THINK THAT'S AN IMPORTANT DISCUSSION TO HAVE. AND, AND, AND I UNDERSTAND YOU CAN'T ADVANCE THE BALL ALL THE WAY IN TWO WEEKS, BUT I THINK THAT THAT WOULD BE A REALLY IMPORTANT PART OF IF WE'RE SETTING, IF WE'RE SETTING SOMETHING WITH THE PSA IN ORDER TO STOP THE, THE, THE DEFICIT THAT WE'RE IN. I UNDERSTAND THAT, BUT IF THERE WERE REAL CLEAR INDICATIONS AND THESE ARE THE THINGS WE'LL CONSIDER MOVING TO AND BRINGING BACK TO THE OVERSIGHT INTO THE COMMUNITY, INTO THE COUNCIL, UH, IN, IN THIS ANTICIPATED TIME PERIOD, I THINK THAT WOULD BE HELPFUL. OKAY. I I JUST WANNA BE CLEAR, I'M NOT ADVOCATING, OUR PROPOSAL IS THREE TIERS, UH, FOR ALL RESIDENTIAL CUSTOMERS INSIDE AND OUTSIDE THE CITY. CURRENTLY WE HAVE FIVE INSIDE, THREE OUTSIDE. SO OUR PROPOSAL IS THREE TIERS. SO WE'RE NOT ADVOCATING A, A FLAT TIER AT THIS TIME IN THE, IN THE BASE RATES. IN THE BASE RATES. RIGHT. AND I UNDERSTAND THAT, BUT, BUT THERE'S, THERE'S AN INCREASE IN THE, IN THE FLAT RATE COMPONENT. AND I UNDERSTAND THAT IT'S ACROSS TIERS, BUT IT'S STILL AN INCREASE IN THE FLAT RATE. AND TO THE DEGREE THAT IT'S AN INCLUSIVE FLAT RATE, IT DOES SERVE TO, TO, I MEAN IT SERVES TO, TO, TO, TO IMPACT THE, THE PRICE INDICATION WITH RESPECT TO USAGE BECAUSE YOU'RE INCREASING IT. AND THAT'S BY DESIGN IN ORDER TO BE, THAT'S BY DESIGN. IT'S JUST A MORE HOLISTIC DISCUSSION ABOUT WHERE IT IS THAT THAT PRICE INDICATION SHOULD APPROPRIATELY BE AND HOW DO YOU DO THAT PRICE INDICATION MAYBE IN, IN BOTH AREAS, BUT WHAT'S THE APPROPRIATE PLACE TO PUT IT, TO WHAT DEGREE IN EACH ONE. AND I THINK THAT THAT CONVERSATION IN THE PSA WILL NOT ONLY HELP US MAXIMIZE THE USE OF THE PSA TO HELP DRIVE, UM, UH, EQUITY AND OUR CLIMATE CHANGE VALUES, BUT ALSO HELP PUT INTO PERSPECTIVE, UM, HOLISTICALLY THE CONVERSATION THAT WE'RE HAVING WITH RESPECT TO THE BASE RATE CHANGE. AND, AND THEN KATHY, UM, I, I WON'T TAKE A LOT OF TIME WITH MY QUESTIONS, BUT JUST TO SIGNAL THEM AND I CAN DO SOME OF THEM OFFLINE, I WANNA UNDERSTAND A LITTLE BIT BETTER WHAT'S BUILT INTO THE PSA IN TERMS OF THE ASSUMPTIONS. I THINK I, I HEARD YOU MENTION THAT ONE OF THE ELEMENTS IS THE POWER SUPPLY AGREEMENTS, SO I WANNA DIG CORRECT. POWER PURCHASE AGREEMENTS. YES. AT THE, I'M SORRY, THAT'S WHAT I MEANT. POWER, POWER PURCHASE AGREEMENT. SO I HAVE SOME QUESTIONS ABOUT THE ASSUMPTIONS THERE AND UM, I'LL JUST MAKE A STATEMENT THAT, YOU KNOW, WE KIND OF WENT DOWN THIS ROAD BEFORE, BUT DECIDED NOT TO PURSUE IT BECAUSE OF, UM, EFFORTS THAT AUSTIN ENERGY NEEDS TO MAKE ON ITS OWN AND THINK THROUGH THINGS. BUT YOU KNOW, THERE WE ALSO HAVE VALUES, WE HAVE VALUES FOR CLIMATE CHANGE, WE ALSO HAVE VALUES FOR, UM, WORKER PROTECTIONS AND WORKER RIGHTS, WHICH FROM MY PERSPECTIVE, CARRIES TRUE FOR WHAT WE DO WHEN WE DO POWER PURCHASE AGREEMENTS. SO THAT'S A WHOLE NOTHER ISSUE. AND I, I'M GONNA WANNA UNDERSTAND WHAT KIND OF, UM, ASSUMPTIONS WE'RE MAKING RELATED TO THE COST OF THOSE. AND THAT'S A SEPARATE DISCUSSION ABOUT HOW WE, HOW WE, UM, PROCEED AND UNDERSTAND OUR, UM, OUR VALUES AS A CITY RELATED TO WORKERS. UM, ALSO AGREE WITH WHAT, UH, THE QUESTIONS THAT OTHERS HAVE RAISED. AND I THINK IT'S REALLY IMPORTANT THAT, THAT WE DO DELAY THIS, UM, BECAUSE IT IS COMING TOO FAST AND IT'S ALSO TOTALLY TAUGHT UP, CAUGHT UP IN THE PUBLIC'S MIND WITH THE RIGHT CASE. THEY ARE NOT DISTINGUISHING [03:55:01] THIS, NOR SHOULD THEY, BECAUSE IT'S ALL, YOU KNOW, BOTH THINGS ARE. THE BOTTOM LINE FOR THEM IS HOW MUCH ARE THEY GONNA HAVE TO PAY. MM-HMM. . SO, SO WE REALLY NEED THE ADDITIONAL TIME. SO I JUST WANTED TO ECHO WHAT YOU HAD SAID, MAYOR, AND WHAT OTHERS HAD SAID WITH REGARD TO THAT. OKAY. UM, THANK YOU. THANK YOU. AND COUNCIL MEMBER KITCHEN, I AGREE WITH YOU ABOUT YOUR POINT ABOUT, UM, WORKER CONDITIONS. I NEED TO BETTER UNDERSTAND 17 AND I CAN MAKE THIS QUICK AS WE LEAVE. I'M LOOKING AT, I'M LOOKING AT THE PROJECTIONS FOR 2023 AND TRYING TO UNDERSTAND, WE HAVE PRIOR YEARS ACTUAL COSTS OF 5 39 KNOWN IN MEASURABLES. AND THEN WE HAVE THE ESTIMATED OVER UNDER AT 29 AND THE ACTUAL OVER UNDER AT 75 2. AND SO THAT'S A DIFFERENCE OF ABOUT 40, 45 MILLION. IS THAT WHAT RIGHT, SO THE, THE ACTUAL OVER UNDER IS, UM, AS OF THE END OF AUGUST 31ST. AND THEN THE ONLY NUMBER THAT IS NOT AN AC UH, HISTORICAL NUMBER IN THE CALCULATION IS THE ESTIMATED. SO THAT IS FOR SEPTEMBER AND OCTOBER. OH, OKAY. GOTCHA. SO, SO THE TOTAL OVER UNDER, WE THINK, I MEAN THE TOTAL OVER NO TOTAL UNDER IS ABOUT 105, 104.2. OKAY. AND SO BACK TO THAT QUESTION THAT COUNCIL THAT MAYOR PROTE ASKED ABOUT, KIND OF WHAT NUMBER ARE WE HOPING TO RECOVER? IS THAT THE NUMBER WE'RE HOPING TO RECOVER WITH THE POWER ADJUSTMENT SUPPLY? IF I HAD TO GIVE ONE NUMBER TO FOLKS, IT SOUNDS LIKE IT'S THE 105 ISH, 104 POINT SOMETHING, IT'S 104.2. AND SO OF THAT, SOME OF IT HAS TO DO WITH THE MONEY WE HAVEN'T COLLECTED. AND I LOST, I LOST YOU ON WHAT THAT TOTAL WAS. I THOUGHT I HEARD IT WAS ONE MINUTE $49 MILLION. AND THEN YOU MENTIONED UPLIFT. SO IS IT 49 MILLION PLUS THE ADDITIONAL 16 UPLIFT, OR IS IT 40? IS IT SOUNDED WHEN YOU DESCRIBED UPLIFT AS IF THAT'S MONEY THAT COMES TO THE UTILITIES. BUT IF I'M, IF I'M LOOKING AT THAT 105, IT SOUNDS LIKE HALF OF IT WE HOPE TO GET THROUGH RELATIVE, ESTIMATED HALF OF IT. LITTLE LESS THAN HALF OF IT. WE'RE EXPECTING TO COME BACK. RIGHT. SO WE HAVE 150 THAT WE HAVE UNDER COLLECTED. $49 MILLION THOUGH IS THE AMOUNT WE'RE OWED. SO THAT'S ALMOST HALF OF THAT AMOUNT THAT WE UNDER COLLECTED. AND THEN WHERE DOES THE 16, THE ESTIMATED 16 MILLION UPLIFT FACTOR IN, IS THAT SORT OF A CREDIT ONCE WE GET IT? IS IT A CREDIT TOWARD THAT UNDER COLLECTION? NO, SO THE, THE, THE UPLIFT WILL BE A CHARGE THAT WE PAY, UM, THE WRONG DIRECTION IN THE FUTURE. OKAY. SO THAT'S NOT HELPING US HERE. YEAH. BUT, BUT JUST TO KIND OF ASSESS HERE, WE UNDER COLLECTED BY 105 MILLION, BUT NEARLY HALF OF THAT IS MONEY THAT WE'RE OWED THAT WE JUST DIDN'T GET PAID FOR BECAUSE IT'S TIED UP IN BANKRUPTCY COURT. NO. SO IF WE GO TO BANKRUPTCY, YOU KNOW, I'M, I'M GETTING TO AN AREA I'M NOT THAT, UM, BURST IN YET IS THE BANKRUPTCY. UM, SO I DON'T WANNA GIVE YOU A FALSE NUMBER, BUT THE AMOUNT THAT IS EXPECTED IN THE BANKRUPTCY IS NOT TO 49. IT IS. UM, I THINK IF, YOU KNOW, THERE'S SOME OPTIONS, WE MIGHT RECOVER THAT ABOUT HALF OF THAT, UM, IN THE NEAR TERM THAT'S THE 18 TO 24 MONTHS. UH, CUZ THERE'S SOME CONDITIONS NEED TO BE MET, UM, THAT WOULD CONVERT THAT TO CASH. UM, IF YOU TAKE THAT OPTION, YOU, UH, FOREGO THE REMAINDER, THE TOTAL, YEAH. YEAH. I'M, AND WHAT WE'RE CALCULATING IS, UH, THE PRESENT VALUE, WHAT'S BEST FOR OUR CUSTOMERS OVER TIME OR, OR ALL AT ONCE. AND THAT'S WHAT WE'RE WORKING ON NOW. OKAY, THANK YOU. BUT JUST AGAIN, IN TERMS OF MY TRYING TO EXPLAIN THIS TO RATE PAYERS, WE NEED TO MAKE UP ABOUT $105 MILLION AND, AND AS WE LOOK AT THE DIFFERENT CAUSES, BACK TO YOUR QUESTION ABOUT WHAT THE AMOUNT IS OF THE DIFFERENT CAUSES, IT SOUNDS LIKE 49 MILLION OF THAT IS REVENUE THAT WE WERE OWED THAT WE DID NOT TAKE IN, THAT WE DID NOT, WE WERE NOT ABLE TO COLLECT ON SOME PORTION OF WHICH WE'LL GET, WE HOPE THROUGH BANKRUPTCY, BUT WE WERE OWED 49 MILLION. I CAN GET YOU A FULL RECONCILIATION TO HELP YOU OUT WITH THAT, BUT JUST THE GENERAL, AM I RIGHT ON THE GENERAL UNDERSTANDING, UM, I DON'T BELIEVE THE [04:00:01] 104 HAS THE FULL 49. IT HAS 49 MINUS THE UPLIFT. SO THAT'S THE RECEIVABLE THAT'S SITTING ON OUR BOOK. THAT'S WHAT WE EXPECTED TO SERVE A MURCOTT. GOTCHA. OKAY. AND WE BOOKED THAT BEFORE THE BANKRUPTCY COURT HAPPENS. AND SO NOW WE HAVE THIS SETTLEMENT FROM THE BANKRUPTCY COURT THAT WE JUST GOT, I BELIEVE, UM, END OF LAST WEEK THAT WE'RE ANALYZING. SO I DON'T HAVE THE EXACT NUMBER TO GIVE YOU. OKAY, THANK YOU. I'M CONFUSED. WHAT'S THE DIFFERENCE BETWEEN THE 86.2 AND THE 1 0 4 0.2 86, WHICH 86.2 IS THE ACTUAL OVER AND UNDER PLUS THE ESTIMATED OVER AND UNDER. IT'S THE 77.3 PLUS THE 8.9. WHAT, WHAT TYPE ARE YOU LOOKING AT? SORRY, UH, 17. AND THAT'S THE NEXT COLUMN. YEAH. UNDER CHANGE. YEAH. ACTUAL, YEAH, UNDER CHANGE. SO, UM, FOR 2023 THROUGH THE END OF AUGUST, UH, WE ARE UNDER COLLECTED BY 75.2 MILLION. WE EXPECT BY THE END OF OCTOBER TO BE ANOTHER 29 MILLION UNDER COLLECTED. THE TWO THOUGH, YOU ADD THOSE TWO NUMBERS TOGETHER, THAT'S THE HUNDRED AND 4.2 AND THAT'S THE SHORTFALL THAT WE, THAT WE DON'T HAVE THAT WE NEED TO RECOVER. THAT'S CORRECT. THAT'S CASH THAT WE USE TO PAY THE BILLS THAT WE DIDN'T HAVE. I WAS LOOKING AT THE ROLLING, I WAS LOOKING AT 20 CHANGE VERSUS THE 2023, UH, AIRPORT, ALISON. SO TWO MORE WRINKLES, WHICH IS WHERE THIS IS GETTING CONFUSING FOR ME IS WE WERE UNDER RECOVERING BECAUSE WE WERE PAYING, UM, WHAT WE HAD GAINED BACK FROM YURI, BUT THE MARKET SHIFTED FASTER THAN WE ANTICIPATED AND WE DIDN'T GET ON THAT FAST ENOUGH. SO WE HAVE A, UNDER SOME OF THIS, UNDER RECOVERY IS THE FACT THAT WE CHANGED OUR RATES IN ORDER TO PROVIDE THE U OVER RECOVERY, WHICH IS SORT OF COUNTED SEEMINGLY IN TWO PLACES HERE. IF YOU LOOK AT THE 2 88, THAT'S CORRECT. THAT'S, THAT SHOWS ON PAGE, UH, 11 THERE. SO YOU, THAT'S WHERE WE'RE TRACKING THE, THE BLUE BAR IS THE, UH, IN TOTAL AND THE ORANGE BAR IS WHAT'S HAPPENING ON A MONTHLY BASIS. RIGHT. BUT, BUT SO, SO THERE'S, THERE'S, IN ADDITION TO NOT BEING PAID, WE HAD BEEN PAYING BACK TO THE CUSTOMERS, UM, YOU KNOW, WE'VE BEEN CHARGING A LOWER RATE TO PROVIDE, UM, THE MONEY BACK THAT WE HAD EARNED DURING YURI, BUT WE DIDN'T ADJUST IT FAST ENOUGH. AND SO NOW WE'RE UNDER RECOVER. THAT'S CORRECT. AND THEN IN ADDITION TO ALL OF THAT, WE HAVE HIGHER PRICES THAT WE HAVE TO COVER. SO IT'S NOT ALL THE ONE, OH, IT'S NOT ALL THE 1 0 4, BUT IT'S SOMEHOW FIGURING OUT HOW DO YOU COMMUNICATE THAT TO PEOPLE BECAUSE, YOU KNOW, YOU KNOW, THE YURY STUFF IS A GOOD STORY AND A BAD STORY. IT'S A GOOD STORY CUZ WE MADE MONEY ON YU IT'S A BAD STORY CUZ WE DIDN'T ADJUST IT FAST ENOUGH TO GET GOING, YOU KNOW, IN THE HUNDRED AND FOUR THERE'S THE PART THAT'S WHAT WE DIDN'T, WE DIDN'T RECOVER RECOVER IT. WE DIDN'T, DIDN'T CORRECT IT FAST. WE DIDN'T CORRECT IT. BUT THE 104 ALSO INCLUDES MONEY. WE, IF WE HAD NOT DONE THE 69 MILLION, WE PROBABLY WOULD'VE HAD THAT, YOU KNOW, IF WE HAD NOT MADE THAT ADJUSTMENT, WE'D HAVE THAT, THAT MONEY. UM, AND THEN THERE'S THE COST OF, EXCUSE ME, THE, THE COST OF POWER, WHICH IS UP IN PART BECAUSE OF HOW AIRCO IS CHANGING THINGS AND THE CONGESTION COSTS OF EAR COT AND, AND, AND SO IT'S, THAT'S A LOT TO TRY TO EXPLAIN VERY DYNAMIC. YES. UM, TO PEOPLE. AND, AND I THINK THERE'S A PIECE HERE, AT LEAST IN THESE NUMBERS, IT'S NOT REAL CLEAR WITH WHAT HAPPENED WITH THE URIE OVER RECOVERY AND UNDER RECOVERY, WHICH IF YOU JUST LOOK AT THE 2 88 0.3, WHICH IS WHAT YOU TOLD ME BEFORE, I SHOULD BE LOOKING AT, IT SEEMS TO BE DOUBLE COUNTING THE 69 BECAUSE WE AS THE CHANGE CUZ THAT CHANGE IS APPEARING AS A POSITIVE CHANGE IN THAT ROW FOR YURI OVER RECOVERY. AND THEN IT'S ALSO THE CAUSE OF WHY WE DIDN'T GET THE 75 THERE. OKAY. I APPRECIATE IT. I WILL TRY TO BE, UM, UH, MORE DESCRIPTIVE. I LIVE AND BREATHE THIS STUFF, SO IT'S, IT'S HARD SOMETIMES TO LOOK AT SOMETHING, SAY, I DON'T UNDERSTAND THIS. UM, BUT I APPRECIATE THE INPUT. WE'LL, WE'LL TRY TO DO A BETTER JOB. THANK YOU. AND JUST TO, JUST TO PUNCTUATE SOMETHING SEVERAL OF YOU HAVE MENTIONED, THE REAL CHALLENGES HERE ARE THAT THIS IS COMING FORWARD AT THE SAME TIME AS THE RATE PROPOSAL. AND SO WITH THE UNDERSTANDING THAT THESE ARE SEPARATE PROCESSES, WE AS THE POLICY MAKERS CAN'T LOOK AT IT THAT WAY. WE'RE GONNA HAVE TO LOOK AT IT, UM, TOGETHER BECAUSE THOSE, THOSE, UM, PROPOSED INCREASES ARE GOING TO HIT THE SAME RATE PAYERS WHO ARE THE PEOPLE WE REPRESENT. SO WE CAN'T AFFORD NOT TO, WE CAN'T AFFORD NOT TO CONSIDER HOW, HOW, HOW THESE THINGS ARE COMING AT THE SAME TIME. [04:05:01] AND FRANKLY, I ALWAYS THOUGHT THE BASE RATE PROPOSAL WAS TOO HIGH AND I WOULD PREFER HAVING FIVE TIERS RATHER THAN THREE. BUT I THINK IN LIGHT OF THIS NECESSARY, YOU KNOW, WHAT IS LIKELY GONNA BE A NECESSARY INCREASE OF SOME SORT. AND I APPRECIATE THE DIFFERENT OPTIONS. I THINK WE ALSO HAVE A, HAVE TO REEVALUATE THE, THE RATE PROPOSAL. ALL RIGHT. I JUST, ONE MORE COMMENT. YOU KNOW, AND I, CUZ I'VE BEEN FOLLOWING THE, UH, GAS MARKET HERE, ESPECIALLY WHEN, UH, THE DECISION WAS MADE THAT, UH, THEY CUT OFF THE GAS, UH, THE RUSSIA CUT THE GAS OFF OFF TO EUROPE AND THE NEED TO SUPPORT THE, UH, CONFLICT THAT'S BEEN GOING ON OVER THERE, YOU KNOW, AND I SAW THAT THE PRICES OF GAS WAS JUST SKYROCKETING ON THE MARKET. AND I SAID, OH MY GOD. AND JUST LIKE GASOLINE, YOU KNOW, EVEN THOUGH WE MAKE UP A LOT OF GASOLINE HERE, IT'S STILL MANAGED AND AND REGULATED BY THE MARKET. SO I SAW THAT WHOLE INCREASE AND I JUST WAS WAITING FOR THIS REPORT TO COME CUZ I KNOW IT WAS GONNA BE BAD. SO I WANT TO THANK YOU FOR THAT REPORT. ALL RIGHT GUYS, IT IS, UH, ONE 15. LET'S COME BACK AT TWO O'CLOCK. WE'LL DO THE LAST TWO BRIEFINGS STARTING AT TWO AND HOLD ITEMS. UH, WE'RE IN RECESS NOW, ONE 15. WE'LL ALSO TALK ABOUT THURSDAY MANAGEMENT. GOOD AFTERNOON. IT IS, UH, TWO 17. WE'RE GOING TO RECONVENE THE CITY COUNCIL'S, UM, WORK SESSION, UH, HERE ON, UH, SEPTEMBER, UH, 20, I GUESS IT'S 28TH, SEVENTH. I MISSED THAT DAY. BOTH WAYS NOW. SEPTEMBER 27TH, 2002, AND BOARDED COMMISSION ROOM COLLEAGUES. WE HAVE, UH, THE, THE, UM, UH, BRIEFING ON CLIMATE EQUITY PLAN, THE BRIEFING ON TRASH AND CREEKS. UH, AND THEN WE'LL GO BACK AND DO, UM, UNLESS KATHY, YOU WANTED TO DO THOSE, UM, ILAS QUICKLY, WE HAD TALKED ABOUT THROW THOSE IN PLACE OR WE CAN WAIT TILL THESE BRIEFINGS ARE OVER. YEAH, I'M, I'M FINE WITH WAITING, MAYOR. I KNOW WE HAVE FOLKS WHO HAVE BEEN WAITING TO PRESENT, SO I'M OKAY WITH, WITH GIVING THEM AFTER THEN LET'S GO AHEAD AND DO THAT. WE'LL DO THE TWO BRIEFINGS, UH, THEN WE WILL DOUBLE BACK AND DO THE REMAINING POLL ITEMS PLUS THE DISCUSSION OF THURSDAY. THANK YOU MAYOR AND COUNSEL. UH, WE, UH, WILL START THIS [Bl. Briefing on the Climate Equity Plan, Transportation Ele.ctrification Focus.] AFTERNOON ON THE FIRST BRIEFING ON THE CLIMATE EQUITY PLAN. AND TO INTRODUCE THE TOPIC, I'M GONNA TURN IT OVER TO OUR CHIEF OF STAFF, UH, JASON ALEXANDER. GOOD AFTERNOON, MAYOR COUNSEL. JASON ALEXANDER, CHIEF OF STAFF. THANK YOU FOR YOUR TIME THIS AFTERNOON. UM, YOU MAY RECALL THAT WE WERE LAST HERE BEFORE YOU IN JUNE, I BELIEVE, TO GIVE A VERY HIGH LEVEL BRIEFING AND UPDATE ON THE CLIMATE EQUITY PLAN IMPLEMENTATION. UH, IT WAS ALSO AT THAT MEETING THAT WE SIGNALED TO YOU THAT WE WOULD COME BACK ON A MORE REGULAR BASIS, PERHAPS QUARTERLY, TO UPDATE YOU ON, UH, SPECIFIC AREAS WITHIN THE PLAN. AND THAT BRINGS US TO TODAY. TODAY IS OUR FIRST OF THOSE OPPORTUNITIES WHERE WE'LL BE TALKING ABOUT TRANSPORTATION, ELECTRIFICATION. UM, I'M NOT GONNA DO THE PRESENTATION, I'LL TURN THAT OVER IN A MOMENT. BUT LET ME QUICKLY INTRODUCE OUR PRESENTERS. UH, JOINING US TODAY IS ZACH BOMBER WITH OUR OFFICE OF SUSTAINABILITY, CARL POPHAM REPRESENTING AUSTIN ENERGY AND LAURA MORRISON, WHO IS REPRESENTING THE TEXAS, TEXAS ELECTRIC TRANSPORTATION RESOURCES ALLIANCE, WHICH IS A NONPROFIT FOCUSED ON EV ADOPTION ACROSS THE STATE. UM, ALSO WITH THIS IS RICK HARLAND FROM OUR CITY'S FLEET SERVICES DEPARTMENT, IN CASE THERE ARE ANY QUESTIONS FOR HIM AT THE END. AND WITH THAT, I WILL TURN IT OVER TO ZACH. GREAT, THANKS JASON. UH, WE HAVE THE SLIDES. PERFECT. GOOD AFTERNOON, MAYOR AND COUNCIL. I'M ZACH BOMBER, CLIMATE PROGRAM MANAGER WITH OFFICE OF SUSTAINABILITY. SO TODAY WE'RE GONNA GIVE YOU AN UPDATE ON TRANSPORTATION ELECTRIFICATION IN THAT SECTION IN THE AUSTIN CLIMATE EQUITY PLAN. SO THERE ARE, UH, AS JASON SAID, WE GAVE A SORT OF OVERVIEW BRIEFING IN JUNE. UM, AND OVER THE COURSE OF THE NEXT FIVE QUARTERS, WE ARE GONNA GIVE BRIEFINGS ON, UH, SORT OF THE DETAILED IMPLEMENTATION AND SORT OF WHERE WE'RE AT ON ALL OF THE FIVE SECTIONS OF THE CLIMATE EQUITY PLAN. SO, UM, THE FIRST ONE UP IS TRANSPORTATION, ELECTRIFICATION, UH, AND THERE, AS YOU CAN SEE, THESE ARE THE FIVE SECTIONS IN THE PLAN. NEXT SLIDE. SO I'M GONNA QUICKLY GIVE SOME IMPLEMENTATION UPDATES, HIGH LEVEL ON THE, THE ENTIRE PLAN IMPLEMENTATION. THEN WE'RE GONNA DIVE INTO THE DETAILS OF THE TRANSPORTATION ELECTRIFICATION SECTION. AND AS JASON SAID, I HAVE TODAY WITH ME, LAURA MORRISON, AS WELL AS CARL POPHAM, AND THEY'RE GONNA DO THE, THE BULK OF THE DETAIL PRESENTATION. AND THEN THE END, WE'LL TALK ABOUT NEXT STEPS AND GOING FORWARD. SO JUST A VERY QUICK, UH, HIGH LEVEL PLAN IMPLEMENTATION [04:10:01] UPDATE. UM, SOME THINGS THAT ARE BEING IMPLEMENTED ACROSS, UH, THE CITY ORGANIZATION AND ACROSS THE PLAN. FIRST ONE IS, UH, WE HAVE NOW LAUNCHED THE SECOND COHORT OF THE AUSTIN COMMUNITY CLIMATE AMBASSADORS. UH, THE FIRST COHORT WAS LAUNCHED DURING THE DEVELOPMENT OF THE PLAN. NOW THAT WE'RE IN IMPLEMENTATION OF THE PLAN, WE HAVE NINE COMMUNITY MEMBERS THAT ARE WORKING WITH US AND WORKING ON, UM, SORT OF COMMUNITY FOCUSED PROJECTS ABOUT IMPLEMENTING THE PLAN IN THE COMMUNITY. UM, IT'S EXCITING TO HAVE THAT OFF THE GROUND. UH, THE NEXT THING I JUST WANTED TO HIGHLIGHT, UM, THERE WAS, UH, IF YOU RECALL, IN THE F Y 23 BUDGET PROPOSAL, THERE WAS A, I GUESS SIX PAGE SECTION ON NET ZERO. AND HIGHLIGHTING PROJECTS THAT WERE IN THE BUDGET THAT ARE DIRECT, UH, GONNA BE, BE DIRECTLY IMPLEMENTED, UM, FOCUSED ON THE CLIMATE EQUITY PLAN. SO NOW THAT WE'RE MOVING INTO THE NEXT BUDGET YEAR, THOSE THINGS ARE, ARE GONNA BE NOW MOVING AND OFF THE GROUND. UM, WE TALKED ABOUT THIS IN JUNE. THERE IS GOING TO BE A, UH, A NEW COMMUNITY FOCUSED TASK FORCE THAT MY, UH, MY STAFF IS GONNA BE RECRUITING AND WORKING WITH OVER THE COURSE OF THE NEXT YEAR. UH, BASICALLY CALENDAR DEGREE 23 TO BE FOCUSED ON MEASURING EQUITY AND IMPLEMENTATION AND THE METRICS ASSOCIATED WITH HOW DO WE MEASURE, UM, IMPLEMENTING THE PLAN AND HOW ARE WE BEING SUCCESSFUL, UM, FROM AN EQUITY STANDPOINT. AND THEN FINALLY, UH, OUR NEXT QUARTERLY BRIEFING, WHICH, UH, WILL LIKELY OCCUR IN JANUARY, IS GONNA BE FOCUSED ON SUSTAINABLE BUILDINGS. SO THAT'LL BE THE NEXT, UH, THE NEXT PLAN, UH, THE NEXT PRESENTATION. UH, NEXT SLIDE. SO, UH, I TOLD YOU ABOUT THIS IN JUNE, AND THIS IS NOW LAUNCHED AND LIVE, AND IT CAN BE ACCESSED BY THE PUBLIC. UH, WE CREATED AN IMPLEMENTATION DASHBOARD TO GIVE, UM, MORE TRANSPARENT INFORMATION ON ALL THE STRATEGIES AND GOALS THAT ARE, ARE, ARE PART OF THE AUSTIN CLIMATE EQUITY PLAN. THESE ARE JUST SOME SA SOME SNAPSHOTS FROM THAT DASHBOARD. UM, YOU CAN CLICK THROUGH TO THE LINK AND ESSENTIALLY SEE, UM, UPDATES FROM STAFF ON, UM, ALL 74 STRATEGIES THAT ARE LISTED IN THE PLAN. UM, AND YOU CAN SEE THE STATUS OF WHERE THEY ARE. ARE THEY UNDERWAY? HAVE THEY NOT STARTED YET? UM, UH, COMMUNITY PARTNERS THAT THE CITY'S WORKING WITH. UM, WHAT IS NEEDED, WHAT'S UPCOMING? UM, BASICALLY A WHOLE RUNDOWN ON EACH, UM, EACH OF THE STRATEGIES. SO WE'RE GONNA BE UPDATING THIS DASHBOARD AT LEAST ONCE A YEAR. SO IT WILL GIVE STAKEHOLDERS A, A MUCH MORE DETAILED LOOK INTO, UM, HOW THE PLAN IS BEING IMPLEMENTED AND ALL THE STEPS ALONG THE WAY, UM, UH, BEYOND JUST THESE BRIEFINGS. NEXT SLIDE. UH, SO TO JUMP TO TRANSPORTATION, ELECTRIFICATION, THESE ARE THE THREE GOALS THAT, UH, WERE PART OF THE ADOPTED, UH, CLIMATE EQUITY PLAN. UM, AND THE THREE GOALS ARE AROUND, UH, 40% OF TOTAL AUSTIN VMT BE ELECTRIFIED. UM, AND THE OWNERSHIP BE CULTURALLY, GEOGRAPHICALLY, AND ECONOMICALLY DIVERSE BY 2030. UH, HAVING THE CHARGING INFRASTRUCTURE BUILT OUT ACROSS THE CITY, UH, TO SUPPORT THAT MUCH VEHICLE ELECTRIFICATION BY 2030. AND THEN ALSO FOR THE AUSTIN ROUND R SAND MARCO, UM, BASICALLY THE MSA TO BE A LEADER IN TRANSPORTATION ELECTRIFICATION. SO, UM, THIS IS ONE OF THE, YOU KNOW, AS I SAID, ONE OF THE FIVE MAJOR SECTIONS IN THE PLAN. AND IF, IF WE REACH THESE QUANTITATIVE TARGETS THAT ARE LAID OUT HERE, EMISSIONS COULD BE REDUCED BY 18% BY 2030. SO THIS IS A MAJOR SECTION IN TERMS OF ACHIEVING EMISSION REDUCTIONS JUST BECAUSE GASOLINE AND DIESEL USED IN ON ROAD CARS AND TRUCKS OR SUCH A HUGE PORTION OF EMISSIONS IN OUR COMMUNITY. SO, SO JUST TO SET A LITTLE CONTEXT, WE'RE HAND IT OVER TO, UH, TO LAURA AND CARL. UH, SO IN TERMS OF THE CLIMATE EQUITY PLAN, IN TERMS OF THE BEST OPTION FOR CLIMATE CHANGE AND TRANSPORTATION, UM, WALKING, BIKING, USING PUBLIC TRANSIT, THOSE ARE THE BEST OPTIONS THAT GETS US TO ZERO EMISSIONS VERY QUICKLY AND EASILY. UM, BUT CARS ARE CURRENTLY SOMEWHAT NECESSARY IN AUSTIN. UM, THEY'RE DRIVING BY RIGHT NOW. UM, OUR AUSTIN TRANSPORTATION ELECTR ELECTRIFICATION GOALS ARE SOME OF THE MOST AGGRESSIVE IN THE COUNTRY AS WE'VE LOOKED AT OTHER PLANS, TRYING TO GET TO 40% VMT ELECTRIFIED BY 2030 IS ABOUT AS AGGRESSIVE AS IT GETS FROM, UH, CITY SETTING TARGETS. UM, AND WE KNOW THAT MANUFACTURERS IN THE MARKET ARE MOVING QUICKLY. UH, LARS GONNA GIVE A LOT MORE INFORMATION ON THAT, BUT EVERY DAY YOU'RE SEEING NEW MODELS ANNOUNCED. YOU'RE SEEING NEW, UM, UM, MANUFACTURERS TALKING ABOUT NEW ELECTRIC VEHICLE OPTIONS, UM, THAT VARYING PRICE POINTS. UM, AND ON THE REGULATORY SIDE, CALIFORNIA AND OTHER STATES ARE NOW BANNING THE SALE OF NEW GAS POWERED VEHICLES, UM, IN CALIFORNIA. AND THERE ARE, I THINK 14 OTHER STATES THAT HAVE LIKE, UH, INTERCONNECTED LAWS THAT OF CALIFORNIA BANS THE SALE OF NEW ELECTRIC, OF NEW GAS POWERED VEHICLES THAT THESE OTHER STATES WOULD DO THE SAME. SO WE'RE NOW GETTING TO A POINT WHERE IT'S NOT JUST VOLUNTARY, BUT THERE WILL ALSO BE, UM, SORT OF MANDATORY MEASURES RELATED TO ELECTRIC VEHICLES. UM, BUT WE ALSO KNOW THAT CURRENTLY MOST OF THE EVS ON THE MARKET ARE MOST EXPENSIVE FOR MOST ARE TOO [04:15:01] EXPENSIVE FOR MOST PEOPLE. UM, SO KEEPING A FOCUS ON EQUITY AND ADJUST TRANSITION AS WE MOVE TOWARDS, UM, MORE AND MORE EVS BEING OPTED IS, IS KEY. UM, AND JUST FINALLY, EVS SUPPORT OUR LOCAL ECONOMY. UM, THE, THE AMOUNT OF MONEY THAT THIS COMMUNITY SPENDS ON GASOLINE AND DIESEL IS IN THE BILLIONS. AND WHEN THAT MONEY IS INSTEAD SENT TO AUSTIN ENERGY TO CHARGE THOSE VEHICLES, UM, THAT FUNDS ARE OUR LOCAL ECONOMY AND LOCAL GOVERNMENT, IT SAVES, UM, OUR USER'S MONEY, UM, ON MAINTENANCE AND ON FUEL. IT REDUCES AIR POLLUTION, SPORTS, RENEWABLE ENERGY, AND A CONCUSSION RESIDENTS AND BUSINESSES AGAINST FLUCTUATING GAS PRICES, WHICH WE'VE REALLY SEEN THIS SUMMER AS GAS PRICES GOT SO HIGH. SO, UM, THERE'S A LOT OF OPPORTUNITY IN THE SPACE, NOT ONLY FOR CLIMATE, BUT ALSO FOR, UM, LOCAL ECONOMIC ACTIVITY. ALL RIGHT. SO LAURA IS GONNA GIVE THE NEXT FEW SLIDES TO TALK ABOUT THE, THE LANDSCAPE OF, OF ELECTRIC VEHICLES. IS IT THIS ONE TO THE RIGHT? THANKS ZACH. AND I WANNA MENTION THAT I DO APPRECIATE THE LEADERSHIP, UM, OF THE CITY OF AUSTIN WITH THE CLIMATE EQUITY PLAN. AND ALSO, UM, I APPRECIATE THE PARTNERSHIP THAT TECH CTRA HAS WITH THE CITY. WE WORK WITH AUSTIN ENERGY, WITH THE SUSTAINABILITY OFFICE WITH FLEET, UM, SO IT'S A GREAT PARTNERSHIP. UM, THIS SLIDE THAT YOU'RE LOOKING AT SHOWS THE UPSWING IN SALES, UH, BETWEEN 2010 AND 20, UH, 21 IN EV SALES. AND YOU CAN SEE THAT IT'S STEADILY, UH, BECOMING STEEPER AND STEEPER. AND I WANNA MENTION THAT IT'S, UM, THAT THE SALES CONTINUE TO ACCELERATE BECAUSE IN 2021, OVERALL IN THE US, UH, TWO AND A HALF PERCENT OF THE SALES WERE, UM, EVS. AND IN THE FIRST HALF OF 2022 ALONE, THEY HAD ALREADY DOUBLED TO 5%. SO, UM, IT REALLY IS ACCELERATING. AND ACCORDING TO BLOOMBERG REPORT, UM, THE US IS HITTING A, A TIPPING POINT. NOW IN THE TRANSITION, WE'RE SEEING THE SAME TREND IN TEXAS. UM, I WOULD RECOMMEND THAT DALLAS FORT WORTH, UH, CLEAN CITIES COALITION WEBSITE FOR REALLY TERRIFIC DATA ON ELECTRIC VEHICLE REGISTRATION. THEY TRACK IT EVERY MONTH, THE TOTAL REGISTRATIONS. AND, UM, AS OF AUGUST LAST, UH, LAST MONTH, THERE WERE 141,000 EVS REGISTERED IN THE STATE OF TEXAS. AND WE KNOW THAT IN, AT, IT WAS AT THE END OF LAST YEAR, THAT, UH, WE HIT THE 100,000 MARKS. SO WE HAVE, WE HAVE INCREASED THE NUMBER OF, OF, UH, REGISTERED EVS BY 40% INTO NINE UM, MONTHS. UM, THEY HAVE SEVERAL BREAKDOWNS. THEY BREAK DOWN THE REGISTRATIONS IN SEVERAL DIFFERENT WAYS. THIS ONE IS SHOWING PART OF THE BREAKDOWN BY COUNTY. YOU CAN SEE PERHAPS NOT SURPRISINGLY, THAT TRAVIS, UH, HAS THE MOST, UM, ABSOLUTE NUMBER OF EVS AHEAD OF THE OTHER LARGER COUNTIES. SO PER CAPITA, WERE WAY AHEAD. ONE OF THE BARRIERS TO TRANSITIONING TO ELECTRIC VEHICLES IS THE LIMITED OPTIONS OF MODELS THAT ARE AVAILABLE. BUT THIS PROJECTION SHOWS THAT, UM, THAT IN THE NEXT TWO YEARS, THEY EXPECT THAT THE NUMBER OF MODELS SHOULD BE, UM, DOUBLING. AND AS THOSE NUMBER OF MODELS INCREASE, WE'RE GONNA BE SEEING MORE AND MORE, UH, LESS EXPENSIVE ONES, WHICH IS REALLY IMPORTANT. AND IN FACT, GM HAS A SUV, THEY, THEY'RE PLANNING TO, UM, COME OUT, UH, IN 20, UM, 23 OR FOUR, I FORGET, FOR WITH A PRICE OF $30,000. AND WITH, UM, IF YOU'RE ELIGIBLE FOR FEDERAL AND STATE INCENTIVES, YOU MIGHT BE ABLE TO GET THAT DOWN TO $20,000. SO THAT'S REALLY GETTING INTO A REASONABLE NEW CAR, UM, PRICE. UM, AND THE UNION OF CONCERNED SCIENTISTS HAS PROJECTED THAT WITHIN TWO TO SIX YEARS, UM, THAT WE WILL REACH INITIAL, WHAT THEY CALL INITIAL COST, UM, INITIAL PRICE COST PARITY, SO THAT, THAT THE TIME DEPENDS ON, UM, THE VEHICLE, UH, TYPE, BUT THAT IT WILL BE COST ABOUT THE SAME TO BUY AN ELECTRIC VEHICLE AS IT DOES TO BUY A GAS VEHICLE. AND, UM, AUTO MANUFACTURERS ARE GOING ALL IN ON THIS. AND AS ZACH MENTIONED, UM, THE CALIFORNIA BAN ON ELECTRIC ON GAS POWERED VEHICLES BY 2035, UM, SHOULD HAVE A SIGNIFICANT IMPACT ON THE MARKET. AND ANOTHER DRIVER, OOPS, EXCUSE ME. THANK YOU. ANOTHER DRIVER OF, UM, OF THIS TRANSITION IS WHAT'S HAPPENING AT THE FEDERAL LEVEL. IT WAS IN, UM, AUGUST OF 2021 THAT BIDEN SET A GOAL THAT BY 2030, 50% OF ALL LIGHT DUTY SALES WOULD BE ELECTRIC, UM, AND CONGRESS, UM, I'M SURE YOU'VE HEARD, HAS FOLLOWED THAT UP WITH THREE REALLY HISTORIC ACTS THAT ARE GONNA HELP TO MOVE THAT FORWARD. UM, AND A RECENT ANALYSIS THAT I READ BY, UM, NEW ENERGY FINANCE SAID, UH, BLOOMBERG REPORT SAID THAT WITH THESE, UM, FEDERAL ACTIONS, THAT IS COMPLETELY REASONABLE TO EXPECT [04:20:01] THAT WE WILL HIT THAT 50% GOAL BY 2030. UM, AND I DO WANNA MENTION THAT IN ADDITION TO ALL THREE OF THESE HISTORIC ACTS THAT I'M GONNA TALK ABOUT, UH, FOCUSING ON CLIMATE CHANGE, THEY ALL HAVE CENTERED, UH, AS PART OF THEM GOOD JOBS AS WELL AS EQUITY. THE FIRST ONE I'LL JUST MENTION BRIEFLY, THE CHIPS AND SCIENCE ACT THAT WAS PASSED LAST MONTH, UH, WILL HELP ADDRESS THE, THE SUPPLY CHAIN LIMITATIONS THAT WE'RE SEEING NOW THAT BASICALLY MAKE IT IMPOSSIBLE FOR MANY PEOPLE TO EVEN GET THEIR HANDS ON AN ELECTRIC VEHICLE IF THEY WANT TO RIGHT NOW. THE OTHER ONE WAS THE, UM, INFRASTRUCTURE INVESTMENT AND JOBS ACT THAT WAS PASSED LAST FALL. IT HAD LOTS OF DIFFERENT ELEMENTS THAT ARE GONNA HELP ELECTRIC TRANSPORTATION. THE FIRST ONE I'LL MENTION IS THE NATIONAL EV INFRASTRUCTURE, OR NE PROGRAM THAT WILL PUT 500,000 FAST CHARGERS ALONG OUR FREEWAYS AND ACROSS THE COUNTRY TO ADDRESS, UH, RANGE ANXIETY. UM, THERE ARE BILLIONS OF DOLLARS, BILLIONS AND BILLIONS OF, OF DOLLARS FOR ELECTRIC BUSES, WHICH, UM, THE CAP METRO COURSE IS A LEADER IN AND ALSO FOR ELECTRIC SCHOOL BUSES. AND I'M EXCITED TO REPORT THAT I JUST HEARD FROM A I S D THAT THEY JUST PUT IN THEIR FIRST ORDER FOR ELECTRIC BUSES. SO THAT'S PRETTY EXCITING. UM, OTHER SIGNIFICANT, UH, INVESTMENTS, UH, THAT IT WILL MAKE. ALSO WITH REGARD TO THE NEVY PROGRAM, I WANNA TALK JUST A MINUTE ABOUT THAT. IT'S A 7.5 BILLION PROGRAM. IT'S DIVIDED INTO TWO. THE FIRST PART, 2.5 BILLION IS A GRANT PROGRAM. UM, INFORMATION IS NOT AVAILABLE YET. IT SHOULD BE OUT THIS FALL ABOUT EXACTLY HOW THAT'S GONNA WORK, BUT HOPEFULLY, UM, THERE WILL BE SOME PROGRAMS AND PROJECTS IN CENTRAL TEXAS THAT WE'LL BE ABLE TO TAKE ADVANTAGE OF THAT. THE OTHER 5 BILLION IS A FORMULA PROGRAM THAT ALLOCATES A CERTAIN AMOUNT OF MONEY TO EVERY STATE. AND, UM, THE STATE OF TEXAS IS GETTING 500,000, EXCUSE ME, IS GETTING 408 MILLION OVER THE NEXT, UM, FIVE YEARS. AND EVERY STATE HAD TO SUBMIT A PLAN ABOUT HOW THEY WOULD BE USING THEIR MONEY. IT WAS SUBMITTED BY OCTOBER, I BY AUGUST 1ST. AND, UM, JUST THIS MORNING THE FEDS ANNOUNCED THAT, UM, THAT TAX GOTS PLAN THAT HAD BEEN SUBMITTED WAS PASSED. SO THAT MEANS THAT THE STATE WILL BE GETTING THAT MONEY. UM, AND IT'S A GOOD PLAN IN MANY WAYS. I SHOULD, UH, UH, IT'S, IT TAKES HALF OF THE MONEY AND, UM, ALLOCATES IT TO, BASICALLY TO OUR FREEWAYS, WHAT ARE CALLED THE ALTERNATIVE FUEL FUEL CORRIDORS, TO ENSURE THAT THERE'S A FAST CHARGER EVERY 50 MILES ALONG THE FREEWAYS. AND THEN IT ALSO MAKES SURE THAT, THAT EVERY COUNTY, UM, IN THIS STATE HAS A FAST CHARGER. THERE'S 190 CHARGE COUNTIES THAT DON'T. SO EVEN THOUGH THAT MONEY, THAT HALF OF THAT MONEY WON'T BE COMING DIRECTLY TO TRAVIS COUNTY, UM, BECAUSE WE'RE ALREADY PRETTY WELL TAKEN CARE OF THERE, IT DOES MEAN THAT AUSTIN DRIVERS ARE GONNA BE ABLE TO DRIVE ON, UM, INTERSTATES AS WELL AS MANY SECONDARY ROADS LIKE IT, THEY'LL BE EVERY 50 MILES FROM HERE TO HOUSTON ON TWO 90, FOR INSTANCE, GOING THROUGH THE DIFFERENT COUNTIES. SO THAT'S GOOD NEWS FOR, FOR US. UM, THEN THE SECOND HALF OF THE FUNDING IS ALLOCATED TO THE MPOS, AND CAMPO WILL BE GETTING 20 MILLION, UM, TO STARTING IN 2023, UM, TO, UM, UH, TO, UH, PUT CHARGING STATIONS IN, UM, OUR, IN THE CAMPO AREA. AND I DO WANNA MENTION THAT THAT MONEY, ALL OF THIS NAVI MONEY IS SUBJECT TO JUSTICE 40, WHICH IS AN EXECUTIVE ORDER THAT REQUIRES THAT 40 PER THAT THE PROGRAM ALLOCATE 40% OF THE BENEFITS TO DISADVANTAGED COMMUNITIES. SO THAT'S GONNA BE AN INTERESTING CONVERSATION FOR ALL THE MPOS TO HAVE. UM, BUT AN EXCITING CONVERSATION. AND I UNDERSTAND ALSO THAT, UM, TECH.IS GONNA BE PROVIDING, MAKING AVAILABLE SOME MONEY TO THE MPOS FOR PLANNING AND FOR HAVING THAT IT NEEDS TO, YOU KNOW, IN PUBLIC ENGAGEMENT, TECH CETERA, IS WORKING WITH US AND ENERGY ON THAT. SOME TO COME UP WITH A MODEL OF HOW TO DO THAT PUBLIC ENGAGEMENT TO ENSURE THAT, UM, GRASSROOTS FOLKS ARE AT THE TABLE AND EQUITY IS APPROPRIATELY ADDRESSED. AND THEN THE LAST ONE THAT I'LL MENTION IS THE INFLATION REDUCTION ACT. I'M SURE YOU READ ABOUT THAT LAST MONTH, HAVING, UM, PASSED. IT HAS TONS OF MONEY AND SUPPORT FOR ELECTRIC TRANSPORTATION. AND I WILL MENTION JUST A FEW HIGHLIGHTS. UM, FIRST IT'S GOT, IT'S THE FIRST TIME WE'LL HAVE A TAX CREDIT FOR USED EVS, WHICH WILL BE, UH, TERRIFIC FOR A LOT OF FOLKS IN THE USED EV MARKET. THERE ARE GOING TO, WITH REGARD TO MEDIUM DUTY AND HEAVY DUTY INCENTIVES, THERE'S A BILLION DOLLARS THAT HOPEFULLY THE CITY WILL BE ABLE TO TAKE PARTLY ADVANTAGE OF FOR, UM, REPLACING SOME OF THEIR, UM, LARGER VEHICLES [04:25:01] IN THE FLEET. AND THAT'S GONNA COVER AS WELL. IT'LL BE COVERING A HUNDRED PERCENT OF THE CHARGING INFRASTRUCTURE PLANNING TECHNICAL TRAINING. IT'S, IT'S A REALLY COMPREHENSIVE, UH, SECTION. THERE ARE TAX CREDITS FOR COMMERCIAL VEHICLES AND ALSO FOR COMMERCIAL CHARGING STATIONS IN LOW INCOME AREAS THAT TAX CREDITS LIMITED TO LOW INCOME AREAS. SO THAT'S GREAT. AND THEN THE LAST ONE I WANNA MENTION, THERE'S $27 BILLION FOR GREEN BANK FUNDING, WHICH IS EXCITING BECAUSE IT IS, UM, IT IS FUNDING TO HELP TO OVERCOME FINANCIAL BARRIERS IN AREAS SUCH AS TRANSITIONING TO ELECTRIC TRANSPORTATION. SO A LOT OF GOOD STUFF THERE. AND, UM, WITH THAT, WE'LL TURN IT OVER TO THANK YOU, LAURA. UH, GOOD AFTERNOON. UM, THE, UH, AUSTIN ENERGY STRATEGY TO, UM, ADDRESS TRANSPORTATION ELECTRIFICATION, SOMETHING WE PRODUCE IS CALLED THE FIVE EV PILLAR STRATEGY. THIS STRATEGY WELL ALIGNS WITH THE CLIMATE EQUITY PLAN AS IT'S VERY, UM, HOLISTIC AND IT'S VERY OUTCOME BASED. SO THOSE FIVE AREAS ARE CHARGING INFRASTRUCTURE, EQUITY AND AFFORDABILITY FLEETS, AND NEW MOBILITY OUTREACH, AND NUMBER FIVE, GRID INTEGRATION. UH, TODAY WE TRACK 25 INITIATIVES UNDER THIS STRATEGY OF FIVE PILLARS. TODAY I'M GONNA HIGHLIGHT FIVE OF THOSE PROJECTS TO INCLUDE TWO OF THOSE WITH OUR FRIENDS FROM CAP METRO AND CITY FLEET SERVICES. SO, PROJECT NUMBER ONE I'D LIKE TO KIND OF HIGHLIGHT, SO REALLY JUST MORE BOOTS ON THE GROUND. WE GOT A LOT OF KIND OF WHAT THE INDUSTRY IS DOING AND THE OVERALL DASHBOARD. I WANT TO JUST GIVE YOU SOME, UH, REAL WORLD PROJECTS THAT WE'RE SEEING SOME PRETTY GOOD MOMENTUM FROM. UH, ONE IS THE AUSTIN ENERGY EV BUYERS GUIDE. UH, WHEN WE LAUNCHED THIS, WE REALLY DIDN'T KNOW WHAT KIND OF METRICS OR HOW MANY UNIQUE VISITORS WE WOULD GET, AND IT REALLY EXCEEDED ALL OUR EXPECTATIONS. WE'RE SEEING MORE THAN 10,000 UNIQUE VISITORS TO THE AUSTIN ENERGY EV BUYERS GUIDE TO A MARKET THAT SELLS ABOUT 1000 EVS OR REGISTERS ABOUT 1000 EVS IN OUR TERRITORY. SO A GREAT SALES FUNNEL IN COLLABORATION WITH OUR LOCAL, UH, AUTO DEALERSHIPS. ANOTHER IMPORTANT FEATURE FOR THE BUYER'S GUIDE WAS A REAL TIME INVENTORY. SO IT JUST WASN'T PROMOTIONAL INFORMATION, BUT SO CUSTOMERS COULD HAVE THE ENGAGED AND SEE WHAT VEHICLE WAS ON THE LOT. NOT ONLY NEW BUT USED. SO THE USED VEHICLE, UH, REAL TIME INVENTORY ALIGNS WELL WITH THE NEW PROGRAM OF THE $4,000 INCENTIVE FOR USED VEHICLES AS WELL, TO MAKE SURE WE HAVE A BETTER EXPERIENCE FOR ALL TYPES OF VEHICLES. AND WE'RE ALSO TRYING TO CHANGE THE, UM, TALKING POINT THAT EVS ARE TOYS FOR THE RICH. UH, YOU CAN GO TO THE BUYER'S GUIDE TODAY AND SEE UNDER $10,000, 7,000, $8,000 GREAT COMMUTER VEHICLES THAT ARE ON LOTS TODAY, READY TO BE READY TO BE SOLD. SO WE'RE EXCITED ABOUT THE BUYER'S GUIDE. UH, SECOND PROJECT WHERE WE'VE SEEN THE METRICS, UH, FAR EXCEEDING ORIGINAL PROJECTIONS IS, UH, UH, WE'VE LAUNCHED EVS FOR SCHOOLS PROGRAM, UH, SEVERAL YEARS AGO. UH, I BELIEVE COUNCIL MEMBER KITCHEN IS IN THE, UH, PROMO SHOT THAT THE AUSTIN AMERICAN STATESMAN RAN. UH, SO WE LAUNCHED THAT IN FOUR SCHOOLS, AND THE PURPOSE OF THAT WAS TO ENGAGE NEXT GENERATIONAL LEADERS AND ALSO CHANGE THE CONVERSATION ONCE AGAIN OF HOW ACCESSIBLE EVS ARE AND TO ALSO POTENTIALLY CHANGE THE, THE HOME CONVERSATION WHEN THE PARENTS ARE TALKING ABOUT GETTING A NEW VEHICLE, THE KIDS. WELL, HERE'S WHAT I'VE BEEN LEARNING IN CLASS. SO THIS IS TIERED THROUGH SIXTH GRADE, THROUGH 12TH GRADE THREE TIERS. WE LAUNCHED IT IN FOUR TITLE ONE SCHOOLS. UH, AND THIS PARTICULAR LAUNCH PARTY WAS AT, WAS AT AKINS. UH, AND SINCE THOSE FOUR SCHOOLS NOW TURN INTO 140 CENTRAL TEXAS SCHOOLS THAT ALL PROMOTE AND OFFER THIS TRAINING, UH, ALSO TO SUPPORT NEW VIRTUAL LEARNING TO THE PANDEMIC, THIS WAS MADE FREE AND AVAILABLE ONLINE TO, TO TEACHERS AND PARENTS. THERE'S BOTH AN ENGLISH AND A SPANISH VERSION, AND THERE'S A VIRTUAL REALITY COMPANION APP. YOU CAN SEE THAT KIND OF THE BOTTOM RIGHT THAT TEACHES KIDS IN A VIRTUAL REALITY SPACE OF HOW TO PLUG IN AND HOW THE, HOW THE EVS WORK AND JUST KIND OF MAKES IT A FUN AND SOME GAMIFICATION, ELEPHANTS, UH, TO THIS. SO, VERY PLEASED WITH WHAT WE'VE SEEN THE METRICS HERE ON EVS FOR SCHOOLS. UH, PROJECT THREE IS WE ARE WORKING VERY CLOSELY WITH CITY FLEET SERVICES ON THE ROLLOUT OF ELECTRIFYING, UH, OUR OWN FLEET. UH, THE, THE, THE HIGHLIGHT HERE IS STEADY PROGRESS AND AHEAD OF THE SAVINGS PLAN. SO ORIGINALLY WHEN THIS PROGRAM LAUNCHED WITH ORIGINAL AMOUNT OF VEHICLES AS PART OF A, A WORK WITH ELECTRIFICATION COALITION, THE EXPECTATION WAS TO NOT ONLY REDUCE GREENHOUSE GAS EMISSIONS, BUT TO SAVE THE, SAVE THE CITY 3.5 MILLION IN 10 YEARS. UH, FLEET IS AHEAD OF SCHEDULE IN THAT SAVINGS. THEY EXPECT TO BE ABOUT A YEAR AND A YEAR AND A HALF AHEAD OF SCHEDULE OF 3.5 MILLION. AND THEN WITHIN THE 10 YEARS, BASED ON THE ACCELERATION PURCHASE OF EVS, THAT SAVINGS IS ACTUALLY EXPECTED TO BE DOUBLE CLOSER TO $7 MILLION OF SAVINGS THAN IF WE WOULD'VE JUST STUCK WITH OUR TRADITIONAL BUSINESS AS USUAL, BUYING INTERNAL COMBUSTION ENGINES. UM, TWO MAJOR FACTORS THERE. ONE IS THE OBVIOUS. IT PROTECTS US FROM [04:30:01] THE FLUCTUATION OF GAS PRICES THAT HAVE BEEN SPIKING. BUT EVEN THE MAINTENANCE TALKING TO CITY FLEET SERVICES, UH, THEY'RE JUST MUCH MORE EFFICIENT, A LOT LESS MAINTENANCE CALLS, AND OBVIOUSLY YOU DON'T DO OIL CHANGES OR THOSE TYPE OF, OF MAINTENANCE ACTIVITIES. SO VERY GOOD SAVINGS THERE FOR, FOR THE CITY. UH, THE FOURTH OUT OF FIVE PROJECT I TALKED TO IS CAP METRO BUS ELECTRIFICATION, UH, YOU CAN SEE HERE ON THE VISUAL IS THIS IS NOW A STATE OF ART. USED TO BE A DERELICT LIKE MATTRESS FACTORY, IF YOU RECALL. UM, NOW IT'S A STATE OF THE ART, UH, CAP METRO NORTH NORTH OPS BUS DEPOT THAT CAN SUPPORT UP TO 187 ELECTRIC BUSES. CAP METRO ALSO ENROLLED IN A HUNDRED PERCENT, NOT JUST FOR THE BUS ELECTRIFICATION, BUT ALSO THEIR OP CENTER, UH, GREEN CHOICE. SO THEY'RE FULLY SUPPORTING, UH, WEST TEXAS WIND RENEWABLE ENERGY THERE. UH, CAP METRO GOT APPROVAL TO PURCHASE AN ADDITIONAL 197 EBUS. UH, MARKET IS ONE OF THE BIGGEST PURCHASES IN NORTH AMERICA. UH, AND THEN COMING SOON IN 2023 IS TWO, UH, BUS RAPID TRANSIT LINES WILL BE FULLY ELECTRIFIED. AND THEN THE NUMBERS SHOULD BE AROUND 70 ELECTRIC BUSES. SO THERE IS, UM, ABOUT, UM, 12 IN, UH, SERVICE TODAY. SO, UH, VERY FAST IN CORPORATION AND A LOT OF SUPPORT FROM THEIR BOARD, UH, TO, TO TO MOVE FORWARD. AND THEN THE, UH, LAST PROJECT TO HIGHLIGHT IS E-BIKES ARE FOR EVERYONE. UH, VERY EXCITING CAMPAIGN. UH, SO THIS WAS TO PUT INFRASTRUCTURE AND E-BIKE ACCESSIBILITY WITH OUR PARTNERS AT, AT HAKA AND OTHERS. UH, IT INCLUDES PUBLIC TRAINING. THERE WAS AN EVENT JUST THIS LAST WEEKEND WITH HAKA AND THE HAKA AMBASSADORS AND RESIDENTS ON E-BIKE ACCESSIBILITY TRAINING THAT WENT OFF, UH, VERY WELL. AND WE ARE ALSO SPONSORING A PILOT TO PUT INFRASTRUCTURE AT A 75% AFFORDABLE HOUSING UNIT. YOU CAN SEE THE PICTURE OF THAT AND WHAT THE DESIGN WITH THAT WILL LOOK IN THE LEFT. SO THERE'S A SECURE PLACE FOR RESIDENTS TO NOT ONLY STORE THEIR E-BIKES, BUT WITH EVERY LEASE, UH, OF AN APARTMENT, THEY, THAT E-BIKE AND THE HELMET AND THE TRAINING COMES, COMES WITH THAT APARTMENT. SO VERY EXCITED THERE. AND YOU CAN ALL SEE A STORY ARC OF, OF SOME OF THE HAKA AMBASSADORS AND PROPERTY MANAGERS WERE REACHED OUT TO CREATE TRAINING VIDEOS. AND THEN WHEN, UM, USA TODAY REACHED OUT, CUZ THERE WAS A LITTLE BUZZ ABOUT THAT, WE, WE, WE CONNECTED THEM AND THEY HAD JUST A REALLY GREAT WRITEUP ABOUT HOW SHE'S AN ADVOCATE FOR E-BIKES FOR HER RESIDENTS AND HOW GAME CHANGING THEY ARE. SO IT SHOWS THE EVOLUTION OF APPROACHING THEM ORIGINALLY WITHIN A CONCEPT AND THEN READING INTO KIND OF A, A FULL THROTTLED SUPPORT. SO WE'RE VERY EXCITED WITH THAT THERE. UM, SO REALLY I'D JUST LIKE TO HIGHLIGHT JUST THE MULTITUDE OF PARTNERSHIPS AND THE ECOSYSTEM AND COLLABORATION SUCCESS. THERE'S, THERE'S NOTHING MY SMALL BUT MIGHTY TEAM DOES WITHOUT COLLABORATION WITH OTHERS. UM, TO INCLUDE THE FOLKS YOU SEE HERE, AND BACK HERE, UH, TECH CETERA IS LISTED, BUT AS WELL AS IT REALLY IS A GREAT ECOSYSTEM, UH, HERE IN AUSTIN AND A LOT OF DIFFERENT, UH, FOLKS AND COMMUNITIES INVOLVED. AND WE'RE VERY FORTUNATE THERE AND JUST REALLY ENDING ON, ON NEXT STEPS. UM, SO THE THEME OF NEXT STEPS IS TO CONTINUE TO LEVERAGE THESE PARTNERSHIPS. THAT'S THE KEY TO GETTING, FRANKLY ANYTHING DONE IN THE COMMUNITY GOALS. UH, WE'RE GONNA BE LEVERAGING THE EV BUYERS GUIDE, ESPECIALLY WITH THE NEW LANGUAGE AROUND THE 4,000, UH, UPFRONT CREDIT FOR USED EVS. WE'RE VERY EXCITED WITH THAT TO CONTINUE THE PARTNERSHIP WITH NGOS AND SCHOOL DISTRICTS. YOU KNOW, LAURA MENTIONED, UH, ASD JUST ANNOUNCED THEIR FIRST, UH, ORDER FOR SOME ELECTRIC SCHOOL BUSES. THAT HAS BEEN A LONG DISCUSSION WITH A I D. WE'RE VERY EXCITED THERE. UH, COLLABORATE WITH HOUSING PROVIDERS ON CHARGING STATION CAR SHARE AS WELL AS E-BIKE SHARE. UH, FURTHER EXPAND AND DEVELOP THE EDUCATIONAL AND OUTREACH PROGRAMS. EVS FOUR SCHOOLS IS A GREAT PLATFORM TO DO THAT WITH. UH, WE DO OWE CONSOLE AND UPDATE ON THE E-BIKE PROGRAM. REVAMP CONSOLE SENT VERY STRONG LANGUAGE OVER TO GO BIGGER AND BOULDER. SO BY NOVEMBER IS OUR TIMELINE TO COME UP WITH OUR NEW PLAN FOR OUR ELECTRIC BIKE, UH, PROGRAMS. AND I'M VERY EXCITED TO, UH, BE FORWARDING THAT INFORMATION. UH, ALONG WE'RE CURRENTLY IN THE PROCESS OF EVALUATING THE DIFFERENT PROGRAM AND OVERALL PROGRAM. UH, RE RE REVAMP, UH, CAP METRO IS TO FINALIZE AND, UH, THE DESIGN TO DEPLOY THEIR TWO FULLY ELECTRIC BUS RAPID TRANSIT LINES AND CITY FLEET TO CONTINUE TO EXPAND THE EVS AND OPERATION. SO THAT CONCLUDES THE PRESENTATION. THANK YOU. SO AGAIN, MAYOR COUNCIL, THIS IS A UPDATE THAT WE HAVE ON THIS FIRST SECTION, BUT WE WILL COME BACK TO YOU AS NOTED IN JANUARY WITH FURTHER UPDATES. BUT, UH, JUST WELCOME THE OPPORTUNITY TO ANSWER ANY QUESTIONS OR COMMENTS ON THE PRESENTATION TODAY. I REALLY APPRECIATE THE PRESENTATION AND THE WORK THAT THIS CITY'S BEEN DOING FOR, UH, UM, A COUPLE DECADES TO REALLY, UH, PRESS THE, THE, THE ENVELOPE IN, IN CITY'S RESPONDING TO, TO CLIMATE MITIGATION. GLAD THE CITY'S GONNA HAVE A STAFF PRESENCE AT THE C [04:35:01] 40 CONFERENCE, UH, COMING UP AS WELL AS, UH, COP 27 MEETINGS, UH, AS WE GO INTO THE, TO THE FALL. UM, UH, HOPEFULLY THERE'LL BE RECOGNITIONS THERE FOR THE WORK, UH, THAT, THAT AUSTIN'S DONE. IT'S GREAT TO SEE HOW WE'RE LEADING WITH ELECTRIC VEHICLES. UM, THE NUMBERS, UH, JUST MAKE THAT INEVITABLE. UH, YOU KNOW, I, I STILL HEAR PEOPLE SAY THAT TEXANS WON'T ADOPT EVS BECAUSE WE, WE SO LOVE OUR PICKUPS , UH, UNTIL YOU SIT IN A FORD F-150 LIGHTNING AND REALIZE THAT, THAT THAT'S GONNA LEAVE IN THE DUST ANY FORD PICKUP THAT IS ON THE ROAD, UH, TODAY, UH, WE NEED THE, THE CARS AT ALL. AT ALL. ABSOLUTELY ALL, ALL RANGES. UH, BUT I REALLY APPRECIATE THE, THE WORK AND THE LEADERSHIP THAT THIS CITY IS, IS SHOWING. AND YES, THANK YOU. THIS, THIS IS A VERY EXCITING, A LOT OF PROGRESS SINCE, UH, WE, WE FIRST DID THE, UM, FLEET ELECTRIFICATION FOR THE CITY OF AUSTIN, GOSH, MANY, MANY YEARS AGO. SO THIS IS GREAT. UM, I WANNA DRILL DOWN JUST A LITTLE BIT CAUSE I KNOW, UM, I KNOW YOU'VE BEEN WORKING ON THIS, UH, OVER THE YEARS, BUT WHAT ARE YOU SEEING IN TERMS OF, UM, UH, PURCHASE OR USE OF ELECTRIC VEHICLES OR ELECTRIC BIKES BY, UH, DIFFERENT INCOME LEVELS OF FOLKS? I KNOW THAT YOU'VE HAD PROGRAMS TO TRY TO INCENT OR ASSIST FOLKS IN BUYING CARS. WHAT'S THE LATEST ON THAT? WELL, I CAN TALK FROM THE LOCAL, UH, PERSPECTIVE, MA'AM. UM, SO WE HAVE SEVERAL REBATES. WE REBATE ELECTRIC BIKES. YEAH. RIGHT NOW THE CURRENT REBATE FOR AN INDIVIDUAL IS UP TO $300. WE ALSO REBATE INFRASTRUCTURE FOR LEVEL TWO HOME CHARGING. UH, BUT POTENTIALLY EVEN MORE IMPORTANTLY TO YOUR QUESTION IS THE TARGETED OUTREACH WE DO, ESPECIALLY WITH HISTORICALLY UNDERSERVED COMMUNITIES. MM-HMM. , UH, OVER FIVE YEARS AGO WE, THROUGH A PHILANTHROPIC GRANT STARTED EVS ARE FOR EVERYONE MM-HMM. . AND THAT WAS TO HIRE A DEDICATED PERSON TO HAVE PROGRAM DESIGN AND BUDGET AND ALSO HELP, UM, CONSULT ON ALL OUR PROGRAMS OF HOW WE'RE PUTTING EQUITY AT THE FRONT OF THE TABLE, IF YOU WILL. SO WE CONTINUE TO SEE A VERY GOOD ADOPTION. AND THAT'S ALWAYS BEEN THE CORE VALUE OF EVS FOR EVERYONE. AND HENCE WHY YOU SAW EVS FOR SCHOOLS STARTING IN TITLE ONE SCHOOLS. UH, WHY WE SAW AN EMPHASIS TO PUT USED VEHICLES IN ON THE BUYER'S GUIDE. AND SO YOU JUST SEE A LOT OF, UH, PROGRAM DESIGN ELEMENTS CHANGE. UM, AND WHAT WE ARE SEEING IS A STEADY INCREASE. WE STILL HAVE A LOT OF WORK TO DO MM-HMM. , BUT WE'RE STARTING TO SEE WITH THE USED VEHICLES AND THE NEW 4,000 CASH ON THE HOOD, IT'S NOT A TAX INCENTIVE THAT'S KIND OF DONE DOWN INTO THE FUTURE. THAT WAS A BIG PART OF THE PROGRAM. WE'RE SEEING THAT REALLY BEING ACCESSIBLE MORE FOLKS. BUT, BUT EVERYONE HAS THEIR ENTRENCHED VIEWS AND, AND INTEREST AND HEARTS AND MINDS ARE THE PROBABLY THE SLOWEST THINGS TO CHANGE. BUT WE ARE SEEING A SIGNIFICANT INCREASE IN, UH, THE DEMOGRAPHICS OF WHO ARE BUYING THESE VEHICLES NOW. AND IT CONTINUES TO GET WIDER, BUT WE STILL HAVE WORK TO DO. DO YOU, DO YOU HAVE, UM, TARGETS? UM, I KNOW YOU'RE TRACKING IT. I'M JUST WONDERING IF WE HAVE TARGETS FOR UPTAKE THAT TAKE DEMOGRAPHICS INTO ACCOUNT. SO OUR PROGRAM TARGETS, HOW, HOW THEY WORK IS AROUND BUDGETS. SO WE TAKE A LOOK AT THE BUDGET AND OVERALL PROGRAM ENROLLMENT AND CHANGES TO THE PROGRAMS OF HOW THEY MIGHT, UH, DO UPTAKE, BUT WE DO NOT HAVE A SPECIFIC METRIC. OKAY. MM-HMM. , UH, WHAT WE FOUND IN EVEN LOOKING AT DIFFERENT PROGRAMS OF WHAT KIND OF INFORMATION WE FEEL COMFORTABLE WITH ASKING MM-HMM. TO EVEN, AND JUST TO HELP WITH THAT CREDIBILITY MM-HMM. . BUT WE DO SEE THE LOCATIONS OF WHERE THE REBATES COME FROM AND THE ZIP CODES, AND THERE'S DIFFERENT DEMOGRAPHIC BETA THERE MM-HMM. , BUT OVERALL, THAT'S BEEN KIND OF THE, THE PROGRAM DESIGN IS REALLY FOR EVERYONE IS WHO THE PROGRAMS ARE FOR MM-HMM. AND THEN TARGETED OUTREACH AND ENGAGEMENT WAS WITH HISTORICALLY UNDERSERVED COMMUNITIES TO TRY TO RAMP UP AND MAKE SURE THEY KNOW THEY, THEY'RE, THEY'RE PART OF THAT AS WELL. OKAY. THANK YOU. CAN WE COMMENT? SURE. HANG ON A SECOND. GO AHEAD. BECAUSE, UH, I JUST WANNA COMMENT THAT, YOU KNOW, OBVIOUSLY THERE'S A LOT OF WORK TO DO IF YOU EVEN JUST LOOK AT THE STATISTIC THAT, UM, RIGHT NOW 80, 80% OF THE PEOPLE THAT OWN ELECTRIC VEHICLE CHARGE AT HOME, THAT MEANS THAT 80% OF THE PEOPLE THAT OWN ELECTRIC VEHICLE CAN CHARGE AT HOME, RIGHT. WHICH IS SINGLE FAMILY HOMES AND ALL THAT KIND OF STUFF. BUT I THINK THAT'S ONE OF THE REASONS THAT THE NE PROGRAM AND JUST MARRIED WITH JUSTICE 40 IS SO IMPORTANT MM-HMM. BECAUSE IT MEANS GETTING, UM, CHARGING STATIONS INTO AREAS WHERE THERE'S NOT A MARKET FOR 'EM YET. AND THAT'S WHY THE FEDS ARE PAYING FOR O AND M ON [04:40:01] TOP OF IT. THEY EXPECT THAT, BUT ALONG WITH THAT NEEDS TO COME PROGRAMS LIKE THE EVS FOR SCHOOLS THAT HELPS TO EDUCATE AND HELP PEOPLE UNDERSTAND. BUT ACROSS RACIAL AND ETHNIC, UM, UH, BOUNDARIES, THERE IS INTENSE INTEREST. AND IN FACT THERE'S, UM, THE, UH, CONSUMER REPORTS JUST PUT OUT, UM, A SURVEY THAT SHOWED THAT AMONG, UM, DIFFERENT DEMO, DIFFERENT RACIAL AND ETHNIC LINES. UM, THE MOST INTEREST WAS FROM ASIAN AMERICANS, SECOND HIGHEST AFRICAN AMERICANS, THIRD HIGHEST HISPANIC, FOURTH HIGHEST WHITES. SO, YOU KNOW, ANY ASSUMPTION THAT THERE'S, YOU KNOW, LIMITS ON DEMOGRAPHICS, UM, IS IN INTEREST IS PROBABLY NOT A GOOD ASSUMPTION. THANK YOU. APPRECIATE THAT. UM, ALLISON, I MEAN IT'S, SORRY, P VAN RADEN AND ALLISON MAYOR, I'D LIKE TO BE IN THE QUEUE AS WELL. I'LL GET TO YOU PAGE. GO AHEAD. I'M ON THE, UM, THANK YOU MARY. UM, I'M ALSO A TRUSTEE. THERE WAS METRO AND ONE OF THE THINGS WHERE THEIR EBIKE PRO, UH, PROGRAM, IT'S, WHICH IS GREAT, I HAVE OWNED ONE, I HAVE OVER 4,000 MILES ON THAT. SO I MEAN, I'M REALLY HAPPY WITH MINE, BUT I HAVE A LOT OF SENIORS THAT, UH, AND WE'RE, WE'RE BUILDING A LOT OF SENIOR HOUSING IN MY DISTRICT AND, UH, A LOT OF THESE PEOPLE ARE NOT CAPABLE OF GETTING ON A TWO WHEELER. SO, UH, I HAVE BEEN TRYING TO PROMOTE THAT THREE WHEELERS WHERE THEY COULD RENT THOSE OUT OR BECAUSE THE, UH, SENIORS WOULD REALLY WANT TO BE MOBILE AND BE ABLE TO GET OUT AND, UH, YOU KNOW, SOME DO HAVE ELECTRIC WHEELCHAIRS, BUT NOT ALL. SO IT, IT, IT'S A GREAT OPPORTUNITY FOR OUR SENIORS TO BE ABLE TO HAVE THAT ABILITY TO BE ABLE TO GET ONE OF THESE, UH, ELECTRIC BIKES. AND, UH, THEY TAKE METRO, BUT I, THEY JUST NOT THE, IN THE CON CONDITION, THEY HAVE BAD NEEDS OR WHATEVER. AND, UH, THEY WILL NOT RIDE A TWO WHEELERS, BUT THEY WILL GET ON A THREE WHEELERS AND YOU SEE 'EM THERE IN THE GROCERY STORES RUNNING AROUND THERE, YOU KNOW, SHOPPING. SO THIS WOULD BE A GREAT OPPORTUNITY TO LOOK INTO THAT ALSO. UH, ALLISON, THEN PAIGE, THEN KATHY, THANK YOU. UM, SO I'M REALLY, UM, EXCITED BY THIS UPDATE. UM, YOU KNOW, THESE ARE GOOD DEVELOPMENTS, YOU KNOW, NATIONALLY AND, AND, AND LOCALLY. UM, THERE ARE SOME THINGS THAT WE DIDN'T TALK TO TODAY, UM, THAT WERE BROUGHT UP IN THE RESOLUTION THAT I BROUGHT FORWARD IN 2019 ON ELECTRIFICATION OF TRANSPORTATION. UM, AND I DON'T KNOW IF THAT'S IN NECESSARILY THE FOLKS WHO ARE HERE DOING THE, THE PRESENTATIONS, UH, REMIT, BUT I WANNA RAISE THEM AND IF YOU, IF YOU CAN GET US MORE INFORMATION, THAT WOULD BE GREAT. UM, ONE, WE, IN THAT RESOLUTION, WE HAD TALKED ABOUT TAKING SOME STEPS FOR BUILDING CODES AND EV READINESS. UM, SO IF YOU COULD SPEAK TO THAT, IF YOU'RE ABLE TO, WHAT THE STATUS IS OF THAT. UH, THANK YOU FOR THE QUESTION COUNCIL MEMBER. I, I CAN BRIEFLY ADDRESS IT. SO HOW, HOW WE HAVE WORKED ON BUILDING CODES, UH, WITH MY TEAM IS WORKING WITH OUR GREEN BUILDING PROGRAM AND AS YOU KNOW, TYPICALLY THE GREEN BUILDING PROGRAM IS A PRECURSOR TO CITY, UH, BUILDING CODES. THEY KIND OF LEAPFROG EACH OTHER EVERY TWO YEARS YOU SEE AN UPDATE OF ONE OR THE OTHER. AND SO WHERE OUR FUNNEL HAS BEEN INTO THE GREEN BUILDING CODES, SO ORIGINALLY WHEN WE STARTED IT WAS, UH, CALLED AN INNOVATION POINT IN THE GREEN BUILDING CODE AND IT WOULD JUST TALK ABOUT INFRASTRUCTURE. SINCE THEN THAT HAS COMPLETELY REVAMPED, IT'S ITS OWN SEPARATE PART OF GREEN BUILDING, UH, SPECIFICALLY COVERS EV READINESS. IT'S JUST NOT INFRASTRUCTURE. SO SPECIFICALLY OF WHAT WE FIND IN NEW CONSTRUCTIONS, IT'S SO MUCH CHEAPER TO PUT THE INFRASTRUCTURE IN PLACE PRIOR TO THAN A RETROFIT. SO WE DID AS PART OF THE GREEN BUILDING RATING, HAVE VERY, UH, SPECIFIC EV READINESS AND WE'RE SEEING A LOT OF PARTICIPATION OF PEOPLE PARTICIPATE IN GREEN BUILDING, PARTICIPATE IN THE EV READINESS. UH, WE EVEN, UH, POSTED ON OUR WEBSITE A CASE STUDY OF A DOWNTOWN LOCATION WHO THEY WANTED TO GO ALL IN, ORIGINALLY DID 40% OF THEIR GARAGE. EV READY WAS, WHICH WAS A VERY HIGH NUMBER AND THEY WERE GETTING SUCH GOOD MARKET FEEDBACK, THEY WENT TO A HUNDRED PERCENT JUST BASED ON CUSTOMERS SAYING WHY WE'RE BUYING THIS CONDUCT. UM, SO THAT IS WHERE WE ARE TODAY. IT'S NOT IN THE CITY CODES IF SOMEONE WANTS TO TALK TO THAT, BUT WE DO HAVE SOME PRETTY ROBUST LANGUAGE NOW IN THE GREEN BUILDING CODES, UH, OF THE GREEN BUILDING PROGRAM. AND IF I COULD ADD TO THAT, THE, UM, THE UH, CLIMATE EQUITY PLAN DOES HAVE A RECOMMENDATION THAT WE IMPLEMENT EXPLICITLY, UM, SOME KIND OF, UH, EV READY [04:45:01] CODE, UH, WHATEVER LEVEL IT IS OR YOU KNOW, IT MIGHT BE THAT IT'S ONLY FOR MULTIFAMILY, WHICH IS ONE OF THE HIGHEST RECOMMENDATIONS YOU NEED TO GET AN IN MULTIFAMILY. AND IT'S MY UNDERSTANDING THAT, UM, THAT HAS BEEN A TOPIC OF DISCUSSIONS, FOR INSTANCE, AT THE RESOURCE, UM, UM, COMMISSION AND UM, THAT AUSTIN AND AUSTIN ENERGY HAS, UM, IS LEADING. DO YOU KNOW THESE GUYS, AUSTIN ENERGY HAS STARTED LEADING A, A SMALL GROUP DISCUSSION AND DOING SOME OUTREACH FOR THAT. UM, THE INTERNATIONAL BUILDING CODE OR ENERGY CODER, WHICHEVER IT WAS, I CAN'T REMEMBER THE LAST ONE THAT WAS APPROVED. THERE WAS, THERE WAS TALK ABOUT ACTUALLY PUTTING IT IN THERE AND THEN IT DIDN'T MAKE IT IN AT THE LAST MOMENT CUZ IT WAS SOMEWHAT CONTROVERSIAL AND LIKELY IT'LL BE IN THE NEXT ONE. UM, SO THERE'S A LITTLE BIT OF PLAYING OFF BETWEEN GETTING ONE EXPLICITLY IN OUR CODE VERSUS JUST ADOPTING IT THROUGH THE INTERNATIONAL CODE. AND I DON'T AT THE, I KNOW THAT I SPOKE WITH THEM AT ONE OF, SPOKE TO ONE OF THE GROUP MEETINGS, UM, OF SOME MONTHS AGO AND I HAVEN'T KEPT UP TO DATE WITH THAT CONVERSATION. SO, UM, I'M SURE WE COULD FIND THE FOLKS TO, TO BRING YOU A SPECIFIC UPDATE FROM AUSTIN ENERGY TO ACTUALLY TAKE IT TO, UM, A CODE REQUIREMENT AS OPPOSED TO, UM, A RECOMMENDATION IN THE GREEN BUILDING CODE. I WOULD APPRECIATE THAT. I THINK THERE IS VALUE IN, IN SORT OF MODELING IT AND DOING KIND OF WHAT WE'RE DOING WITH SOME OF OUR WATER RULES WHERE YOU'RE KIND OF DEMONSTRATING THAT THIS IS PAYING DIVIDENDS AND WORTH DOING AND BEING ABLE TO DO THAT. BUT WE DO DEFINITELY HAVE AN IMPERATIVE, PARTICULARLY FOR THE MULTIFAMILY TO BE ABLE TO, TO, TO GET THAT IN. AND I THINK THAT GOES BEYOND JUST, YOU KNOW, THE EV BIKE COMPONENT, ALTHOUGH THAT IS AN, AN AN IMPORTANT NEXT STEP. UM, AND THE INTERESTING THING IS THAT MORE AND MORE FOLKS ARE UNDERSTANDING THAT IF THEY WANNA BE ABLE TO, UM, PROMOTE THEMSELVES ON THEM AS A NEW, UM, MARKET, UH, AVAILABILITY THAT THERE NEED, THEY'RE GONNA NEED TO SAY THAT THEY HAVE CHARGING AVAILABLE. SO IT'S GETTING TO BE MORE, UH, A MARKET DRIVEN THING TOO. GREAT, THAT'S WONDERFUL. UM, I WOULD APPRECIATE, YOU KNOW, FURTHER, FURTHER INFORMATION ON THAT. UM, I DON'T THINK YOU'RE GONNA BE ABLE TO ANSWER THIS ONE, BUT I'M GONNA FLAG THIS FOR THE CITY MANAGER CAUSE IT RELATES TO OUR EARLIER CONVERSATION WITH AUSTIN ENERGY. UM, I THINK WE NEED TO UNDERSTAND WHAT THE, UM, THE LOAD ASSUMPTIONS ARE FOR OUR ELECTRIC VEHICLES AS PART OF OUR RATE CASE. UM, BECAUSE PART OF THE ARGUMENT IS, WELL, WE'RE CONSERVING MORE AND SO WE'RE NOT TAKING IN AS MUCH OF THE REVENUE FROM THAT. BUT IF AT THE SAME TIME PEOPLE ARE SHIFTING TO ELECTRIC VEHICLES, THEY'RE GONNA BE REQUIRING MORE ENERGY IN SOME CIRCUMSTANCES AND THAT DOES AFFECT THE MIX. UM, AND I'M ASSUMING THAT THERE IS A ASSUMPTION THAT'S UNDERLYING OUR RATE RATE CASE, BUT, UM, OR, OR OUR PSA ADJUSTMENTS. BUT I THINK WE NEED TO, WE NEED TO BETTER UNDERSTAND WHAT THAT ASSUMPTION IS AND HOW IT MAPS ONTO THE GROWTH THAT WE'RE NOW SEEING AND WHETHER IT'S, WHETHER IT'S, WHETHER IT'S CAUGHT UP, UM, WITH THAT. AND THEN THE OTHER PART OF THE, UM, RESOLUTION THAT WE HAD WAS, UM, EV GRID INTEGRATION AND DEMAND RESPONSE. SO I THINK WE'VE TALKED A LOT HERE TODAY ABOUT ADOPTION OF EVS AND FOR ALL OF THE, THE BENEFITS FROM THE FINANCIAL AND FROM THE, UH, PERSPECTIVE OF THE ENVIRONMENT. UM, BUT THERE'S ALSO OPPORTUNITIES FOR THIS TO HELP US WITH GRID RELIABILITY AND RESILIENCE AS WE TRY TO RESPOND, UM, AND, AND BE PREPARED FOR, FOR CLIMATE CHANGE. UM, AND I DON'T, I WOULD LOVE TO HEAR IF THERE'S BEEN MORE, UH, WORK DONE ON THAT WITH THE CITY AND IN THAT REGARD. UM, AND SO THIS IS WHERE YOU CAN, YOU KNOW, TAKE THE STUFF IN THE ELECTRIC BICYCLE BUS BUSES FROM THE SCHOOL THAT AREN'T BEING USED IN THE SUMMER AND USE IT TO PUT ENERGY BACK IN THE GRID AT PEAK TIMES OR, OR VICE VERSA OR, YOU KNOW, IN OTHER, IN OTHER DIFFERENT SETTINGS AS WELL. CERTAINLY. SO ON THE FIVE PILLARS, ONE OF THE CORE FIVE PILLARS WAS GRID INTEGRATION. UH, SO WE HAVE ABOUT FIVE DIFFERENT INITIATIVES UNDERNEATH THERE, KIND OF TO YOUR POINT. UH, ONE IS WE HAVE AN ACTIVE PILOT CALLED EV 360. SO THAT'S A TIME OF USE, UM, PILOT TO SHIFT CHARGING OF EVS TO OFF PEAK ON THE ELECTRIC GRID. THAT HELPS WITH AFFORDABILITY, TYING WITH NIGHTTIME WIND RENEWABLES AS WELL AS GRID HEALTH. UM, WE HAVE JUST FINISHED A STATEMENT OF WORK TO, UH, FOR DEMAND RESPONSE AROUND EV CHARGING WITH ENERGY HUB. AND SO THAT'S EXISTING THE PLATFORM OF HOW WE CURTAIL, UM, SHED LOAD IS WHAT WE CALL IT FOR DURING RK CORPORATE EVS AS AN ADDITIONAL MODULE. UH, THAT INFORMATION IS ON TOP OF AN ARPA E GRANT WE ALREADY COMPLETED ON DEMAND RESPONSE, UH, DEMAND RESPONSE FOR, FOR EVS. UM, WE ARE ALSO UNDER DISCUSSIONS WITH FORD AND SPECIFICALLY WHAT CAN THE FORD F-150 LIGHTNING MEAN TO VEHICLE TO HOME AND POTENTIALLY EVEN AGGREGATED OTHER SOLUTIONS. SO THERE IS A LOT OF [04:50:01] ACTIVITY AND GRID INTEGRATION BECAUSE THE CONVERSATION HAS REALLY SHIFTED FROM F EVS ARE HAPPENING TO WHEN, HOW QUICKLY AND WHAT ARE WE GONNA DO ABOUT IT. SO WE HAVE A, A PRETTY ROBUST PORTFOLIO, UM, ALSO TO ADD AUSTIN SHINES THAT'S INTEGRATION OF, OF VEHICLE TO GRID WITH A LARGER ECOSYSTEM OF STATIONARY STORAGE AND PV SOLAR. SO WHAT DOES THAT LOOK LIKE? SO THAT PROJECT IS COMPLETED AND OVER 500 PAGES OF WHITE PAPER FROM AUSTIN ENERGY DEVELOPED AS AN INDUSTRY LEADING THING ON INTEGRATING VEHICLE TO GRID. SO, UM, WE'RE, I'D SAY IT'S, IT'S, WE'RE DEFINITELY ON THE FOREFRONT THERE. THERE'S A LOT WE'RE DOING IN THERE. UH, AND I KNOW THERE WAS SOME SPECIFIC LANGUAGE THAT WAS PRESENTED BY CONSOLE AS WELL AS EVEN HAVING TIERED REBATES. HAVING TIERED REBATES ON WHETHER A HOME CHARGER IS, UM, TALKING TO THE INTERNET OR NOT, THAT'S ALREADY BEEN IMPLEMENTED. SO THERE'S A LOT OF PROGRAM DESIGN ELEMENTS THAT BEEN IMPLEMENTED AS WELL AS A LOT OF ACTIVE PROJECTS TO INCLUDE CIVIL, CIVIL GRANTS. SO ONCE AGAIN, THERE'S STILL A LOT OF WORK TO DO. UH, ONE OF THE REASONS WHY, AS SOON AS I'M DONE TALKING WITH Y'ALL, I'M GOING TO THE MOVE AMERICA CONFERENCE. I THINK MAYOR ADLER SPEAKING TOMORROW AT THAT IS THERE IS A LOT OF TECHNOLOGY COMPANIES WORKING IN THIS SPACE TO TRY TO, YOU KNOW, REVAMP AND SEE WHAT'S GOING ON IN THERE. BUT THAT'S JUST A CONTINUING PART OF OUR JOURNEY IN THE INTEGRATION OF TRANSPORTATION ELECTRIFICATION TO THE ELECTRIC GRID. AND IF I COULD ADD THE, UM, THERE'S ACTUALLY A DOCKET OPEN AT THE PUC RIGHT NOW. I MEAN, I KNOW THAT WE'RE NOT REGULATED BY THE PUC, BUT IT DOES INDICATE THE TECHNOLOGY THAT'S COMING AND IT'S SPECIFICALLY ABOUT DISTRIBUTED ENERGY RESOURCES AND ELECTRIC VEHICLES ARE BEING CONSIDERED ONE OF THEM THAT THEY'RE TALKING ABOUT. AND SO IT DOES REQUIRE NEW TECHNOLOGY AND THERE'S A LOT OF WORK IN THAT, IN THAT REGARD. SO I THINK THERE'S A LOT COMING DOWN THE LINE. YEAH, I THINK THERE'S A LOT TO TALK ABOUT, BUT, UH, QUITE FRANKLY, WE REALLY WANTED TO CHERRY PICK A IS REALLY JUST A CONSTRUCT OF TIME, BUT THERE IS A LOT OF ACTIVITY. I DON'T WANT TO, IT NOT BEING ON THE BOARD TO BEING A LACK OF ACTIVITY, IT WAS MORE OF ABOUT WHAT TO PRESENT AT THIS PARTICULAR BRIEFING. BUT THERE'S A LOT GOING ON IN THAT SPACE. THANK YOU. I I WOULD LOOK FORWARD TO, UH, UH, FURTHER CONVERSATION OUTSIDE OF THIS FORM. THANK YOU. PAIGE, WAS I NEXT? MAYOR? YEP, YOU'RE UP. SORRY YOU DIDN'T HEAR ME. THANK YOU. UM, I APPRECIATE UH, THE CALL OUT ON THE SECOND TO LAST SLIDE ABOUT THE E-BIKE REBATE INFORMATION COMING BACK TO US IN NOVEMBER. CAN YOU TELL US BRIEFLY HOW THOSE CONVERSATIONS ARE GOING AT THIS POINT? UH, YES MA'AM. CERTAINLY, UH, THEY'RE GOING VERY WELL. UH, THE TEAM HAS RAMPED UP THE INITIAL ASSESSMENT OF, UH, BOTH, UM, EFFICACY OF PROGRAM CHANGES AS WELL AS BUDGET IMPACT. SO PHASE ONE IS WE PUT TOGETHER A PACKET FOR OUR EXECUTIVE TEAM TO REVIEW, AND THEN IT GOES THROUGH THE OVERALL PROCESS. SO THAT'S WHERE WE ARE. WE ARE ON TRACK TO MEET THE COUNCIL RESOLUTION TIMELINE OF GETTING BACK THE UPDATE BY MID-NOVEMBER. I DON'T EXPECT US TO BE LATE ON THAT. UM, AND IT'S VERY ENCOURAGING. WE DID TAKE TO HEART, MY TEAM TOOK TO HEART TO TO, TO GO BIG AND THAT'S WHAT WE'RE PROMOTING. WE, WE DID AN ANALYSIS OF EVERY SINGLE LINE ITEM AND THEN SOME, UH, CUZ AS YOU RECALL, THE CONSULT RESOLUTION HAD SEVERAL SUGGESTIONS TO LOOK AT, TO INCLUDE. WE DID LOOK AT PLUS ADDED TO INCLUDE EVERY ITEM ON THERE. AND I THINK WE'RE GONNA HAVE A VERY STRONG AND ROBUST RECOMMENDATION. BUT AT THIS POINT, UNTIL I GET THE EXECUTIVE AND MANAGEMENT REVIEWS, I'M NOT READY TO GO, UH, INTO DETAILS. BUT THE, A LOT OF INTERNAL TEAM ANALYSIS WORK HAS BEEN COMPLETED NOW. THANK YOU. UH, I, I REALLY APPRECIATE THAT. IN RESPECT, UH, WANTING TO HAVE A FULL PRODUCT BEFORE YOU START, UH, TALKING ABOUT WHAT MIGHT BE IN IT, UM, I APPRECIATED THE RUNDOWN OF TALKING ABOUT WHAT THE CITY REBATES LOOK LIKE AND NATIONAL REBATES FOR ELECTRIC VEHICLES. ARE YOU AWARE OF ANY STATEWIDE REBATES, EITHER FOR TEXAS OR FOR OTHER STATES THAT MIGHT BE DOING SOMETHING DIFFERENT? ARE THERE A LOT OF STATE LEVEL REBATE PROGRAMS BEING BUILT? RIGHT NOW? THE UM, STATE OF TEXAS HAS, UH, SOMETHING CALLED THE TURP PROGRAM, THE TEXAS EMISSION REDUCTIONS PROGRAM THAT IS MEANT TO REDUCE EMISSIONS. AND, UM, THERE, THERE I THINK ABOUT 14 DIFFERENT STATE, UM, STATE PROGRAMS TO GIVE INCENTIVES AND REBATES. ONE OF 'EM FOR LIGHT DUTY IS, PROVIDES TWO $2,500 REBATE. AND THAT'S FOR PURCHASE OR FOR LEASE. SO THAT'S A NICE OPTION THAT'S NOT IN THE FEDERAL ONE. AND THERE'S A CERTAIN AMOUNT OF MONEY EACH BIUM THAT IS ALLOCATED. IT'S IT'S CAP AT THE CERTAIN, UH, AT THE AMOUNT OF MONEY. UM, THE PREVIOUS BIUM, UM, I DON'T THINK THEY RAN OUT UNTIL THE VERY END. THIS BIUM, THEY RAN OUT IN JULY OR OR JUNE. SO IT WAS, WE'RE ACTUALLY TECH CETERA. UM, OUR C SIX DOES SOME LOBBYING AT THIS STATE AND THEY ARE, THEY, AND [04:55:01] WE, AND A LOT OF OTHER FOLKS ARE GONNA BE LOBBYING TO INCREASE THAT. BUT BEYOND THE LIGHT DUTY FOR PASSENGER VEHICLES, UM, THERE ARE A PLETHORA OF PROGRAMS FROM EVERYTHING FROM, UM, YOU KNOW, UH, RAIL YARD EQUIPMENT TO HEAVY DUTY INTO BUSES. SO IT'S A QUITE A COMPENDIUM OF PROGRAMS ELSE. AND TO YOUR KNOWLEDGE, THANK YOU FOR THAT. UH, DOES IT EXTEND INTO THINGS LIKE E-BIKES OR IS IT MOSTLY AT A LEVEL OF, YOU KNOW, FLEET VEHICLES OR, YOU KNOW, MID-SIZE TRUCKS AND THINGS LIKE THAT? YEAH, NO E-BIKES AT THE STATE LEVEL. IT'S JUST, UM, UH, FOR FLEET GENERAL. OKAY. THANK YOU. I APPRECIATE THAT. AND I JUST, I'LL WRAP UP BY SAYING I REALLY APPRECIATE HOW PROACTIVE CAP METRO HAS BEEN BY TRYING TO ELECTRIFY THEIR FLEET AS WELL. AND THEN IN THEIR, UH, ACQUISITION OF THE METRO BIKE PROGRAM, THEY HAVE DONE A REALLY GREAT JOB OF MAKING SURE THAT THERE'S E-BIKES AVAILABLE IN MORE AREAS OF TOWN FOR THOSE QUICK TRIPS. AND I THINK THAT REALLY HELPS ENHANCE THEIR BUS SERVICE TO HAVE THOSE GOOD OPTIONS FOR FIRST MILE AND LAST MILE CONNECTIVITY. SO I'M GLAD TO SEE THAT AND I HOPE, UH, MAYBE THEY CAN SHARE SOME NOTES AS WE TRY TO ENCOURAGE THE SCHOOL BUSES TO ALSO GET ELECTRIFIED SHORTLY HERE. I THINK, UM, I UNDERSTAND THAT THE SCHOOL BOARD IS CONSIDERING A RESOLUTION TO SET A GOAL TO ELECTRIFY A HUNDRED PERCENT BY, I FORGET, 2035 OR 2030 OR SOMETHING. SO THEY'RE DEFINITELY GETTING VERY ENGAGED. THAT'S GREAT. I KNOW A, A FEW OF US SIGNED ON TO THE ENVIRONMENT TEXAS LETTER TRYING TO ENCOURAGE THEM TO, TO STEP UP AS WELL. SO WE APPRECIATE THEM LOOKING INTO IT AND TRYING TO ADOPT THE TECHNOLOGY. AND, AND I, I HAVE BEEN SPEAKING AND, UM, CARL ALLUDED TO THIS, THEY, WE'VE BEEN, THEY'VE BEEN INTERESTED IN IT FOR A LONG TIME, BUT THEY HAVEN'T EVER BEEN ABLE TO FIGURE OUT AND OR GET A GRANT TO COVER THE DIFFERENCE IN PRICE. AND THAT'S WHY THE FEDERAL MONEY IS SO GREAT CUZ IT'S GONNA HELP DO THAT. THANK YOU. I KNOW OUR, OUR SCHOOL BOARDS ARE TRYING AS HARD AS THEY CAN, GIVEN WHAT CIRCUMSTANCES THEY HAVE AHEAD OF THEM. OKAY. THANK YOU. UH, ANYONE ELSE? KATHY? YEAH, THANK YOU. I WANTED TO START BY JUST THANKING ALL OF YOU FOR THE PRESENTATION. THIS WE'RE REALLY VERY INTERESTING AND IT'S GREAT TO HAVE THE UPDATE. I HAD SOME QUESTIONS ABOUT THE SCHOOL, THE SCHOOL BUSES. FIRST OF ALL, UM, COUNCIL MEMBER MORRISON, I THINK YOU MENTIONED THAT IT, THAT A I S D IS GETTING READY HAS JUST PLACED ITS FIRST ORDER. CAN YOU GIVE US A SENSE OF WHAT SOME OF THE OTHER SCHOOL DISTRICTS WITHIN THE CITY OF AUSTIN ARE, ARE DOING? HOW INVOLVED AND ENGAGED THEY ARE? I SEE A FEW, A FEW LISTED ON HERE UNDER COLLABORATION, BUT IS IT A GOAL IN SOME OF OUR OTHER AREA SCHOOL DISTRICTS AS WELL? NOT THAT I KNOW OF. WHAT I CAN TELL YOU IS THAT ABOUT THREE YEARS AGO, UH, ONE SCHOOL DISTRICT IN TEXAS CALLED EVERMAN ISSD GOT THEIR FIR GOT THE FIRST SCHOOL ELECTRIC SCHOOL BUSES IN TEXAS. SINCE THEN, A LOT OF MONEY HAS BEEN, UM, REALLY FUNNELED FROM THE FEDS, UM, AND THE EPA TO PUT MORE MONEY IN IT. UM, AS I MENTIONED, A I S D HAS BEEN TRYING TO GET A GRANT. UM, TUR HAS, HAS GRANTS. THEY WERE NEVER ABLE TO GET THOSE GRANTS. THEY WEREN'T ABLE TO GET THE, THE EPA GRANTS. AND, AND NOW THEY HAVE, THE FEDS HAVE OPENED UP THIS NEW POSSIBILITY. THE, UM, THE GRANTS FOR, FROM THE FEDS AND THE NEW, UM, THE, THE NEW GUIDELINES THERE ARE PRIORITIZED ISDS AND NON PRIORITIZED ISDS AND ASD IS NOT ONE OF THE PRIORITIZED ONES, SURPRISINGLY. UM, AND SO IT DOESN'T MEAN THAT THEY DON'T GET IT, IT JUST MEANS THEY'LL GET LESS MONEY. INTERESTINGLY, AND THIS IS WHAT I THINK IS SO INTERESTING ABOUT THE WHOLE MARKET IN GENERAL, WE'RE FINDING THAT IT'S REALLY MOVING BEYOND POLITICS OF COOL LIBERAL CITIES WANTING TO DO STUFF FOR, UM, FOR CLIMATE CHANGE, UM, OF THE, IN, IN APPLYING FOR THOSE, UM, UH, ELECTRIC SCHOOL BUS GRANTS. I UNDERSTAND THAT FORT WORTH ISD AND DALLAS ISD ALL BOTH APPLIED FOR 25 OF THEM. AND THERE ARE ACTIVISTS UP THERE THAT HAVE BEEN TRYING TO GET DALLAS ISD AND OTHERS TO, TO ENGAGE ABOUT SCHOOL, UM, ELECTRIC BUSES FOR YEARS AND HAVEN'T BEEN ABLE TO, THE MONEY'S AVAILABLE, THIS IS WHERE THE MARKET'S GOING. AND THEY, THEY WENT ALL IN AND APPLIED FOR THE MAXIMUM NUMBER. SO I THINK THAT'S PRETTY EXCITING. THAT IS, THAT IS GREAT. UM, AND I LOOK FORWARD TO, TO AUSTIN ENERGY AND TO TECH C AND OTHERS CONTINUING TO, TO TRY TO ENGAGE WITH OUR OTHER SCHOOL DISTRICTS TO SEE, SEE IF YOU CAN GET THEM ON BOARD AND, AND A I S D MIGHT MIGHT BE A GREAT PARTICIPANT IN THAT ONCE THEY'VE GOT THEIRS ON, ON, UM, BOARD. JUST A COUPLE QUICK OBSERVATIONS BASED ON STUFF THAT I HEAR FROM TIME TO TIME FROM CONSTITUENTS OR EXPERIENCE MYSELF, I THINK IT WOULD BE GREAT IF WE HAD CHARGERS WITHIN EACH OF OUR CITY FACILITIES. AND I THINK WE ARE GETTING, YOU KNOW, MOVING ALONG THAT DIRECTION. BUT SEA HOME, JUST DOWN THE STREET [05:00:01] IS AN EXAMPLE OF ONE THAT DOES NOT. IT HAS THE FAST CHARGERS OUTSIDE, BUT THOSE AREN'T ACCESSIBLE TO ALL ELECTRIC VEHICLES OR SOME OF THE PLUGIN ELECTRIC. THOSE ARE ONLY, AS I UNDERSTAND FROM TRYING TO HAVE USED IT, UM, THEY DON'T WORK FOR EVERYBODY AND ARE SPOTS THAT ARE DESIGNATED WITHIN THAT CITY GARAGE. THERE ARE SOME SPOTS DESIGNATED FOR, FOR HYBRID OR FOR ELECTRIC VEHICLES, BUT THEY'RE ONLY ACCESSIBLE TO INDIVIDUALS WHO LIVE WITHIN THAT HOUSING. SO CONSISTENT POLICIES ACROSS SOME OF OUR CITY BUILDINGS OR CITY PARKING GARAGES, I THINK WOULD BE GREAT. I SOMETIMES GET FEEDBACK FROM CONSTITUENTS WHO ARE CONCERNED THAT SOME OF THOSE CHARGING STATIONS ARE BEHIND PAYWALL, SO TO SPEAK. LIKE YOU CAN'T ACCESS THE ONE IN THE CITY HALL GARAGE WITHOUT GOING THROUGH THE PAY, YOU KNOW, WITHOUT, WITHOUT PAYING TO PARK HERE FOR THAT PERIOD OF TIME. SO I ASSUME THAT THAT'S PART OF, PART OF THE BALANCE THAT YOU ALL ARE TRYING TO STRIKE OF IDENTIFYING THOSE PUBLIC CHARGING SESSION STATIONS THAT ARE FREE. UM, THE OTHER THING THAT, THAT THERE DOESN'T SEEM TO BE A CLEAR WAY TO PROVIDE FEEDBACK ON, SOME OF THEM ARE POSITIONED IN WAYS THAT DON'T ALLOW, IF YOU HAVE A BACK CHARGER, THEY DON'T ALLOW YOU TO ACTUALLY CHARGE YOUR VEHICLE BECAUSE THE CORD IS SO SHORT. UM, SO, YOU KNOW, AS, AS INDIVIDUALS ENCOUNTER THAT KIND OF THING AROUND TOWN, IT WOULD BE HELPFUL TO KNOW EVEN WHO TO PROVIDE FEEDBACK TO. THE ONE IN OUR DOWNSTAIRS IS, IS AN EXAMPLE LIKE THAT IF YOU HAVE A BACK CHARGER, IT'S HARD. YOU CAN ONLY USE A COUPLE OF THOSE PARKING SPOTS. UM, AND, AND THE SAME IS TRUE OF SOME OF THE OTHER PUBLIC CHARGING STATIONS ACROSS. SO I DON'T KNOW WHAT THE ANSWER TO THAT IS, BUT YOU PROBABLY ARE THE RIGHT FOLKS TO GET THAT MESSAGE THERE. BUT AGAIN, THANK YOU. AND THIS IS, THIS IS GREAT. IT'S ESPECIALLY A GREAT MANAGER TO HAVE THESE UPDATES, THESE REGULAR UPDATES ON THE EQUITY PLAN SO THAT WE CAN BE SURE WE'RE MAKING PROGRESS TOWARD THOSE GOALS. ALL RIGHT, THANK YOU. YEAH, JUST A WORD OF THANKS TO THE TEAM AND AGAIN, ON SLIDE 17, IT REALLY FOCUS ON, UH, THE WORK THAT OUR FLEET SERVICES WERE DOING. SO JUST WANNA DO ANOTHER, A SHOUT OUT TO DIRECTOR WAL AND RA CARLIN WHO'S HERE WITH US. AND AGAIN, WE'RE TRYING TO LEAD BY EXAMPLE AND WE'VE SEEN GREAT WORK FROM US AND ENERGY AND ALSO OUR FLEET SERVICES. SO THANK YOU ALL FOR YOUR WORK. THANK YOU ALL. I HAVE ONE MAYOR, I HAVE ONE LESS. GO AHEAD. UM, JUST AS A, A MEMBER OF CAMPO, UM, I JUST WANNA INVITE YOU GUYS TO MAKE SURE THAT AS WE'RE HAVING THOSE DISCUSSIONS, THAT WE ARE AWARE, UM, FROM YOUR PERSPECTIVE WHAT WE NEED. WE, WE VERY OFTEN SIMPLY RECEIVE ADVICE FROM ATD AND MOST OF THE TIME THAT IS APPROPRIATE. BUT IN THIS CASE, UM, FEEL FREE TO BE REACHING OUT TO US. WE DO MEET REGULARLY IN ADVANCE OF OUR CAMPO MEETINGS AND, UM, WE CAN INITIATE CONVERSATIONS IN ADVANCE. UM, BUT WE WOULD HAVE TO MAKE SURE THAT WE, UM, HAVE THE GUIDANCE THAT WE NEED TO BE EFFECTIVE IN THAT PROCESS AND SHAPING IT. AND IT SEEMS LIKE THERE MIGHT BE, YOU KNOW, WITH THOSE 40% EQUITY GOALS, THERE MAY BE SOME OPPORTUNITY FOR THOSE SCHOOL BUSES TO BE SOMETHING THAT EVERYONE CAN GET BEHIND. I MEAN, I THINK THAT THE REAL CHALLENGE IS, YOU KNOW, HOW DO WE DO THIS IN A WAY THAT EVERYONE CAN, CAN GET BEHIND AND, AND JUST SORT OF WANTED TO SAY THAT WE WOULD WELCOME ADVICE AND HOW TO, HOW TO THINK ABOUT THAT, UM, WITH THE BENEFIT OF THE LARGER EV FRAMEWORK THAT YOU ALL HAVE. I'LL TAKE YOU OUT YOUR WORD FOR THAT BECAUSE I THINK, UM, PUBLIC ENGAGEMENT AND JUSTICE WARDY ARE BOTH VERY IMPORTANT IN THE GUIDELINES FROM THE NE IN THE FEDS FOR NEVIE. SO I'LL, I'LL BE, I'LL KEEP YOU APPRISED WHEN WE LEARN MORE. CAN I, CAN I SPEAK TO THAT TOO? OKAY, GO AHEAD. SO, SO ON CAMPO THEN, UM, IT REALLY WOULD, WHY DON'T WE SET UP ANOTHER CALL? I THINK THAT WOULD BE GREAT BECAUSE THOSE OF US ON CAMPO, IT WOULD HELP US TO DIG INTO SOME OF THE DETAILS IF YOU HAVE TIME, YOU KNOW, THEN, UH, CUZ THEN WE KNOW WHAT'S COMING DOWN THE PIKE AND WE CAN BE PROACTIVE. BUT WE CAMPO BECAUSE, YOU KNOW, GIVEN THE EQUITY REQUIREMENTS, I WOULD THINK THAT THE CITY OF AUSTIN IS GONNA BE A KEY AREA, UH, FOR THAT KIND OF FUNDING. AND SO ASSUMING THEY'RE EQUITY, THEY'RE GEOGRAPHIC, RIGHT. THE EQUITY REQUIREMENTS OR, YEAH. YEAH. OKAY. WELL I SHOULD SAY, WHEN YOU TALK TO THE FEDS OR ANYBODY ELSE THAT, THAT DOE AND OTHERS ABOUT, WHAT DO YOU MEAN BY 40% OF THE BENEFITS? YEAH. ONE WAY TO MEASURE IT IS THAT 40% OF THE CHARGE, CUZ THIS IS JUST FOR CHARGING STATIONS, 40% OF THE CHARGING STATIONS ARE IN DISADVANTAGED COMMUNITIES AND THEY HAVE WAYS OF MEASURING THAT. OKAY. UM, BUT ALSO THERE ARE OTHER POTENTIAL BENEFITS LIKE AIR POLLUTION REDUCTION YEAH. JOBS, WEALTH BUILDING, THINGS LIKE THAT SO THAT SMALL BUSINESSES COULD GET CHARGING STATIONS. SO THE RECOMMENDATIONS THAT WE'VE HEARD FROM THE FEDERAL FOLKS IS, UM, THAT YOU NEED TO WORK WITH THE COMMUNITY TO UNDERSTAND WHAT THEIR PRIORITIES ARE. AND I THINK WITH CAMPO IT'S GONNA BE A BIT OF A CHALLENGE CUZ IT'S REALLY VARIED, RIGHT? YOU'VE GOT, I FORGET HOW MANY EXACT, UH, JOURNEY YOU HAVE, BUT [05:05:01] WE ARE WORKING WITH, WITH US IN ENERGY RIGHT NOW ON, UM, COMING UP WITH MAYBE SOME PROTOCOLS AND UM, UH, DIFFERENT WAYS OF ENGAGING THE COMMUNITY AND DIFFERENT TOOLS THAT WE COULD BRING TO THE COMMUNITY. CUZ WE'VE HEARD NOT, WE'VE HEARD FROM OTHER, UM, MPOS LIKE MM-HMM. , WE DON'T KNOW HOW TO DO THIS. MM-HMM. , WE DON'T KNOW HOW TO HAVE THIS KIND OF CONVERSATION WITH THE COMMUNITY. SO WE'RE GONNA BE WORKING ON THAT. SO I'LL KEEP IT FRONT WHAT'S AN ORDER OF MAGNITUDE OF THE TIMELINE. SO THE MONEY WILL START COMING IN 2023 TO THE MPOS AND, UH, IT IS A, THAT NE'S A FIVE YEAR PLAN, BUT IT DOESN'T START TILL THE FOURTH YEAR UNTIL THE SECOND YEAR. SO YOU'LL HAVE FOUR YEARS TO PLAN AND USE THAT MONEY. AND THEY DO, I BELIEVE THAT THERE'S STUFF IN THE, IN THE ACT THAT SAYS YOU NEED TO SPEND THE MONEY QUICKLY. OKAY. UM, AND, AND HONESTLY, THERE'S STILL SOME OPEN QUESTIONS ABOUT WHAT'S ALLOWED AND WHAT'S REQUIRED. YEAH. UM, SO THERE'S, IT'S A VERY FAST PACED PROGRAM. ALL RIGHT. WELL, WE'LL AS, UM, AS, UH, MAYOR PRO TIM MENTIONED, WE'LL SET THAT UP TO BE PROACTIVE ABOUT IT. CAUSE THAT'S GREAT. THE BEST APPROACH. THAT'S TERRIFIC. OKAY. I'M SORRY, NATASHA. UH, THANK YOU. THIS IS ACTUALLY NOT FOR THE, THE PRESENTATION STAFF AND LET'S GO JASON ALEXANDER, THIS MIGHT BE FOR YOU TWO. UM, I, FOR ONE, CANNOT CHARGE MY CAR HERE AT CITY COUNCIL WITHOUT A SECOND PERSON WITH ME. UM, BECAUSE I CAN'T GET A SIGNAL IN THE GARAGE WHERE THE CHARGING PORTS ARE. SO I CAN'T GET TO CHARGER POINT FROM MY PHONE WITHOUT RUNNING OVER TO THE STAIRS WHERE I CAN LIFT MY PHONE UP INTO THE, UM, ABILITY TO GET CHARGE, DO IT THERE. BUT IF YOU'RE ON YOUR OWN, IT CLICKS, YOU KNOW, AND OFFERS YOU ACCESS TO THE CHARGER, UM, CORD BEFORE YOU GET BACK OVER THERE, IT LOCKS IT AGAIN, AND THEN IT SAYS IT'S UNAVAILABLE. SO ALL THAT TO SAY, I, I, FOR ONE, BECAUSE OF MY, WHO MY PROVIDER IS, CAN'T CHARGE MY CAR ON CAMPUS. IT'S A TWO MAN JOB. I CAN DO IT IF THERE ARE TWO, IF THERE'S ANOTHER PERSON WITH ME, AND WE CAN COORDINATE AND HOLLER OUT WHEN IT'S TIME TO, YOU KNOW, TO, TO PLUG IN THE CORD. BUT JUST LETTING Y'ALL KNOW THAT THAT'S A CHALLENGE THAT WE HAVE WITH OUR GARAGE AND, UM, MY DREADED T-MOBILE SERVICE ON CAMPUS. AND I DON'T KNOW IF THAT'S SOMETHING THAT FOLKS SHOULD BE TAKEN INTO CONSIDERATION AS WE ARE ELECTRIFYING THE CITY. IF THERE ARE OTHER PARKING GARAGE IMPEDIMENTS SIMILAR TO THAT ONE. UM, JUST SOMETHING TO TAKE INTO CONSIDERATION. GOTCHA. OH, NO. SO THE, SO THE TRICK ON THAT ONE, IF YOU HAVE AN APPLE PHONE YOU CAN DOWNLOAD ONCE YOU'RE IN CHARGE POINT, JUST WHEREVER, RIGHT NOW, WHEN YOU HAVE GOOD SERVICE, YOU CAN DOWNLOAD IT TO YOUR APPLE WALLET. AND THEN WHEN YOU GO INTO APPLE WALLET, YOU DON'T NEED SIGNAL. YOU JUST HIT APPLE WALLET AND IT POPS UP, AND THEN YOU CAN, YOU CAN BEEP IN WITHOUT HAVING CELL SERVICE. THAT'S A, JUST THANK YOU. I APPRECIATE THAT CLARIFICATION. AND I DON'T KNOW IF Y'ALL COULD TELL ABOUT MY NEW ATTITUDE. I'M A RECENT, UH, COM UH, I, I JUST STARTED USING AN APPLE PHONE FROM MY, MY MANY, MANY YEARS OF AN ANDROID USER. BUT THAT'S, I DON'T KNOW THAT THAT'S AN OPTION FOR ANDROID USERS. THANK YOU FOR FLA THAT REMEMBER WE'LL, WE'LL FOLLOW UP. YOU BET. AND CARL, THANKS FOR ALSO MENTIONING THE, THE, THE MOVE AMERICA CONFERENCE THAT BEGINS HERE TOMORROW MIGHT BE THE ONE OF THE MOST IMPORTANT IN THE WORLD AND IT'S GREAT TO HAVE IT HERE, UH, IN OUR CITY. AND IT LOOKS LIKE TICKETS ARE FREE. TICKETS ARE FREE. AND IT LOOKS LIKE THERE MAY BE FREE TICKETS IF YOU WORK FOR GOVERNMENT. CORRECT. ALL RIGHT. LET'S GO TO THE NEXT PRESENTATION. THANK YOU ALL VERY MUCH, COLLEAGUES. LET, KEEP GOING. WE HAVE A HARD STOP TODAY AT FIVE AS WE DO ON TUESDAYS. MANAGER, YOU WANNA CALL? THANK YOU MARY COUNCIL, OUR [B2. Staff Response to Resolution No. 20200123-108, related to Trash in Creeks.] LAST PRESENTATION FOR THE AFTERNOON IS IN RESPONSE TO A RESOLUTION THAT WAS, UH, PASSED IN 2020 AND JANUARY, 2020, ACTUALLY PRE PANDEMIC. AND SO, UH, YOU'LL HEAR ABOUT SOME OF THE CHALLENGES THAT WE HAD IN NAVIGATING THIS, UH, DURING THAT TIME. UH, BUT WE'RE VERY EXCITED TO, UH, GIVE THE RESPONSE TO THAT, UH, FROM OUR WATERSHED PROTECTION DEPARTMENT. AND I'LL FIRST TURN IT OVER TO OUR DIRECTOR, JOR HEY, MORALES. RIGHT. AWESOME. CAN USE A QUICKER. WELL, GOOD AFTERNOON, COUNCIL MEMBERS. MAYOR, MY NAME IS GUS. I'M THE DIRECTOR OF THE WATERSHED PROTECTION AND WE'RE EXCITED TO BE BACK. UM, WE ACTUALLY, UM, PUT OUT THE MEMO TO MARION COUNCIL IN AUGUST. AND I THINK ONE OF THE MEDIAS RE RECALLED IT A REPORT, A A BOOK REPORT. RIGHT. AND SO TODAY, UH, I GUESS WE'RE GIVING YOU THE CLIFF NOTES OF THAT BOOK REPORT. UM, THANK YOU FOR THE PUSH THAT YOU GAVE US. WE'VE BEEN STUDYING, UH, CREEKS FOR YEARS, BUT WE HADN'T LOOKED AT IT FROM THE ANGLE THAT WE DID AFTER THE RESOLUTION THAT WAS PASSED. SO THANK YOU FOR THAT PUSH. UH, WE'RE HERE TO PRESENT THE FINE THINGS ON THAT. I HAVE KATIE, OUR ENVIRONMENT OFFICER, AND ANDREW, WHO WILL, UH, [05:10:01] WE DO THE PRESENTATION. SO I'M GONNA TURN, TURN IT OVER TO KATIE FIRST. I'LL KEEP IT VERY BRIEF. KATIE KO, UH, ENVIRONMENTAL OFFICER, ASSISTANT DIRECTOR OF WATERSHED PROTECTION. UM, JUST VERY PROUD OF MY TEAM FOR THIS WORK. I IS A, MAYBE AN UNEXPECTED, UH, ITEM OF A TRASHING CREEKS PRESENTATION THAT YOU'RE GONNA HEAR A WHOLE LOT OF PASSION AND A WHOLE LOT OF SCIENCE, UH, IN A WAY THAT IS REALLY EXCITING. IT'S KIND OF THE HIGHLIGHT OF MY DAY. SO I'M EXCITED TO PASS IT OVER TO MY AMAZING STAFF. UH, ANDREW, THANK YOU FOR THAT INTRODUCTION. ANDREW KLEMEN AND WATERSHED PROTECTION. UH, I AM WITH THE TEAM CALLED APPLIED WATERSHED WATERSHED RESEARCH. UH, WE'RE THE TEAM THAT BASICALLY DOES THE WATER QUALITY MONITORING ON OUR LAKES AND CREEKS AND STREAMS. AND, UH, WE ARE THE ONES THAT BRING THINGS LIKE THE EMERGENCY CONTAMINANTS, UH, BLUE GREEN ALGAE, SCI TOXINS AND, AND OTHER ISSUES. THE REASON I'M HERE TODAY, OF COURSE, WE SAID WAS, UH, STARTED BACK IN 2020. AT THAT TIME, UH, THERE WAS LOTS OF CONCERNS ABOUT SCOOTERS, TOO MANY SCOOTERS, DOWNTOWN SCOOTERS IN CREEKS. UH, TOO MUCH TRASH IN TOWN. ENCAMPMENTS WAS A A, A BIG ISSUE AT THAT TIME, AS, AS AS IT IS TODAY TOO. UM, AND THERE WERE MANY, UH, DELIVERABLES THAT WERE REQUESTED IN C U R 22 3 4, AND MOST OF THEM HAD BEEN ADDRESSED, BUT SOME OF THEM WERE KIND OF, UH, TOOK A LONG TIME TO FIGURE OUT HOW TO ADDRESS THESE. SO WE BROKE THE, UH, TWO, UH, REMAINING DELIVERABLE PORTIONS INTO A FIELD STUDY, UH, WHICH WAS KIND OF MORE IN DEPTH SCIENCE. AND THEN A BENCHMARK REPORT, UH, WHICH MY COLLEAGUE LAYLA GOLINK RESEARCHED ACROSS THE NATION AND TRULY ACROSS OTHER COUNTRIES AROUND, UH, THE WORLD, TO SEE HOW THEY'RE ALL GRAPPLING WITH THIS PROBLEM. CAUSE WE ARE NOT UNIQUE IN THIS, UH, IN THIS DILEMMA. SO WHEN I FIRST GOT THE ASSIGNMENT, UH, TO TRY TO BREAK OUT THE DIFFERENT SOURCES AND THE DIFFERENT PERCENTAGE OF, OF, UH, RESPONSIBILITY FOR ALL THE DIFFERENT SOURCES OF TRASH IN OUR ENVIRONMENT, I LOOKED AT IT AS A SIMPLE, UH, NORMAL KIND OF TYPICAL POLLUTANT ASSESSMENT WHERE YOU LOOK AT THE AMOUNT OF POLLUTION UPSTREAM, AND THEN YOU, UH, LOOK AT THE AMOUNT OF POLLUTANT DOWNSTREAM OF A SOURCE. YOU SUBTRACT THE TWO, AND THEN YOU GET THE AMOUNT THAT OF, THAT IS CONTRIBUTED FROM THAT SOURCE. BUT YOU CANNOT DO TRASH THAT WAY. IT DOES NOT WORK THAT WAY. UH, TRASH FROM LITTLE STORMS IS BROUGHT TO THE CREEK. UH, LARGE STORMS BLAST THE BLAST, THE TRASH OUTTA THE CREEK AND FAR DOWNSTREAM. UH, THE VARIABILITY AND STREAM CHARACTER, SMOOTH STREAMS, UH, CONCRETE CHANNELS LIKE TANA HILL OR LIMESTONE, BOTTOM CREEKS, LIKE LITTLE WALNUT, THE CRASH, THE TRASH JUST MOVES ON THROUGH. AND EVEN THOUGH YOU MAY HAVE LARGE SOURCES OF TRASH THERE, YOU NEVER SEE IT IN THE CREEK JUST BECAUSE IT KEEPS MOVING ON OTHER CREEKS WITH NICE GREEN BELTS LIKE BARTON CREEK OR BULL CREEK MIGHT HAVE A LOT OF, UH, TREES AND SHRUBS THAT THE TRASH HANGS UP ON. YOU CAN SEE 'EM QUITE A BIT. UH, SO, UH, INSTEAD WE, WE, WE TRIED A COUPLE PILOT PROJECTS, ONE IN EAST BOLD. AND WE FOUND QUICKLY THAT, UH, THE ONLY WAY TO DO THIS PROJECT IS TO DO A VERY LABOR INTENSIVE, VERY HIGH RESOLUTION DATA COLLECTION EFFORT. YOU CAN JUST WALK IN A FEW FEET AND THE PROBLEM GOES FROM NOTHING TO SOMETHING OR FROM SOMETHING TO NOTHING. SO WE CHOSE 20 CREEKS SO THAT WE HAD, UH, REPRESENT ALL THE COUNCIL DISTRICTS AND MOST OF THE MAJOR WATERSHEDS, UH, WE HAVE, OF COURSE, THAT'S ABOUT HALF THE CREEKS IN OUR AUSTIN AREA, UH, OF THAT AREA. WE LOOKED EVERY 30 FEET IN OVER 110 MILES OF CREEKS. WE GOT 19,467 DATA POINTS. WE DIDN'T LOOK, JUST LOOK IN THE STREAM. UH, AT FIRST OUR PILOT STUDY. WE LOOKED JUST INSIDE THE CREEK. CAUSE I TOOK, UH, YOUR DIRECTION VERY LITERALLY AND QUICKLY FOUND THAT THE TRASH TYPICALLY IS NOT IN THE CREEK BED. IT'S EITHER ON THE BANKS OR IN THE FLOOD PLAINS ARE AREAS WHERE IT GETS CAUGHT UP OR HUNG UP. UM, THE, THE BENEFIT TO THIS REALLY, UH, TO ME WAS EYES IN THE FIELD. I'VE BEEN IN THESE CREEKS, SAMPLING THE WATER QUALITY, UH, LOOKING AT THESE, UH, SITES FOR 18 YEARS OR MORE. AND WHEN SOMEONE TOLD ME ANECDOTALLY, OH, THE TRASH IS GETTING WORSE AND WORSE, I AT FIRST SAID TO MYSELF, I'VE BEEN HERE FOR 18 YEARS. IT DOESN'T LOOK LIKE IT'S GETTING WORSE TO ME. UM, BUT OF COURSE, BEING OUT IN THE CREEK, I STARTED TO REALIZE THERE ARE PLACES IN THESE CREEKS THAT I'VE NEVER SEEN. AND, UM, JUST HAVING THE EYES AND THE EYES IN THE FIELD WAS, WAS REALLY QUITE AMAZING. UM, WE WERE ABLE TO, AT THE SAME TIME, UH, OBSERVE, DOCUMENT LOCATIONS OF ALL THE SCOOTERS IN THE CREEKS. UH, WE ONLY FOUND 21, WHICH WAS SURPRISING TO ME. AND, UH, I CAN'T TELL YOU IF THAT NUMBER HAS BEEN GOING UP OR DOWN BECAUSE THERE'S NO BASELINE FROM WHICH TO, UH, TO DO THAT. NOW WE HAVE A BASELINE, SO WE CAN TELL IF IT'S IN THE FUTURE'S GONNA GO UP OR DOWN. BUT THOSE 21 CREEKS, UH, SINCE THE TIME OF THE, UH, 2020 RESOLUTION, UH, AUSTIN TRANSPORTATION DEPARTMENT HAS WORKED WITH TWEET TWO, UH, THREE 11 TO HAVE A REALLY OUTSTANDING, UH, PART ON THEIR APP WHERE PEOPLE CAN TAKE A PICTURE, SNAP A LOCATION, IDENTIFY A SCOOTER IN A CREEK. THE ATD WILL THEN QUICKLY, IN SHORT ORDER TALK TO THE VENDOR. THE VENDOR WILL THEN GO COLLECT IT. SO OUT OF THAT 120 MILES, 21 SCOOTERS FOUND THEY'VE BEEN REMOVED. NOW, UH, I DON'T, I THINK WE FEEL LIKE THE CITY HAS A PRETTY GOOD HANDLE ON THAT. OF COURSE, KEEP IN MIND THERE'S ANOTHER, UH, 90 MILES OF CREEKS, OF MAINSTREAM CREEKS OUT THERE AS WELL. SO THEY'RE NOT ALL GONE. BUT I DO BELIEVE THAT THE, UH, PROCESS TO GET RID OF THEM IS VERY EFFICIENT. AND ATD TAKES IT VERY SERIOUSLY. UH, WE USED A SCORECARD TO, TO JUDGE, UH, UH, EVALUATE, UH, EACH OF [05:15:01] THE 30 FOOT SEGMENTS, UH, ON A SCALE OF ZERO TO 20, MOSTLY ON VOLUME, BUT ALSO ON AESTHETICS AND THE TIME IT MIGHT TAKE TO CLEAN THAT SIDE UP. CAUSE THERE'S A VERY DIFFERENT ASPECTS OF TRASH AND CREEKS. AND AT THE SAME TIME, WE WERE ABLE TO IDENTIFY SOURCES IF WE HAD A VERY SALIENT AND OBVIOUS SOURCE OF TRASH THERE, UH, THAT WE WOULDN'T NOTE THAT, UH, IN THESE DIFFERENT CATEGORIES. NOW, THERE ARE OTHER SOURCES OF TRASH, UH, OBVIOUSLY, BUT, UM, THESE ARE THE ONES WE FOCUSED IN ON. IN ADDITION TO THAT, UM, WE DIDN'T SPECULATE, WE DIDN'T GUESS WHERE IT MIGHT COME FROM. IT HAD TO BE OBVIOUS, CLEAR AND PRESENT, UH, BY OCCURRENCE. THE, UH, LARGEST CONTRIBUTION OF TRASH IN THE CREEKS WAS BY ENCAMPMENT. UH, PART OF THAT THOUGH IS SPATIALLY BIASED BECAUSE ENCAMPMENTS, UH, OF COURSE, ARE OFTEN DOWN IN GREEN BELTS AND DOWN IN CREEKS AREAS. OF COURSE, THAT WAS DIFFERENT, UH, WHEN THE, UH, THE BAN WAS IN PLACE. NOW THE BAN IS NOT IN PLACE. WE DON'T HAVE A GOOD FRAME OF REFERENCE OF BEFORE AND AFTER. UH, THIS IS OUR FRAME OF REFERENCE STARTING DAY FORWARD. BUT, UH, ALTHOUGH IT IS THE MOST, UH, THOUGH IT WAS AT THAT TIME, THE MOST, UH, FREQUENT SOURCE THAT WE OBSERVED, IT WAS NOT THE MOST INTENSE SOURCE. UM, DUMPING UNKNOWN, WHICH MEANS WHERE SOMEONE BACKS UP THEIR, THEIR TRUCK AND DUMPS A WHOLE BUNCH OF GARBAGE OUT OF A TRUCK AT A CULVERT OR A, OR A BRIDGE CROSSING. LIKE THAT WAS ACTUALLY THE, UH, NARROWEST RANGE WITH THE HIGHEST INTENSITY. MEAN MUCH HIGHER THAN, UH, ENCAMPMENT. ENCAMPMENT WAS VERY VARIABLE. WE FOUND SOME ENCAMPMENTS THAT HAD VIRTUALLY NO TRASH. WE HAD SOME THAT HAD HAULING AMOUNT OF TRASH. EXTREMELY VARIABLE. BUT IF YOU'LL NOTICE ALL THE OTHER CATEGORIES WITH EXCEPTION OF ONE, BASICALLY MET IN THE SAME RANGE. AND WHAT THAT TELLS ME IS THAT ALTHOUGH ENCAMPMENT IS, UH, SOMETHING THAT IS OBVIOUS AND SALIENT OUT THERE, AND PEOPLE THINK OF THAT, UH, WHEN THEY'RE THINKING ABOUT TRASH AND CREEKS, WE HAVE A LOT OF WORK TO DO ON MANY DIFFERENT ASPECTS OF SOURCES OF CONTRIBUTION. AND IT'S MORE OF A COMMUNITY, UM, PROBLEM. UH, THE BENEFIT, ANOTHER BENEFIT OF THE RESULT OF THIS PROJECT IS THAT WE HAVE A GEOREFERENCED, UH, MAP. THEY CAN TELL YOU EXACTLY WHERE THE, UH, MOST INTENSE TRASH AREAS ARE, AND WE CAN CORRELATE THOSE NOW TO LOCATIONS OF THAT, OF THE SOURCES THAT WE SAW THEM WITH. WE CAN CORRELATE THOSE. AND I WAS VERY, VERY, VERY EXCITED ABOUT THIS BECAUSE, UM, I LIKE TO BE STANDING ON SOLID GROUND AS A SCIENTIST WHEN I TALK ABOUT SIGNIFICANT RELATIONSHIPS AND CORRELATIONS OF THINGS. SO MATHEMATICALLY, IF YOU HAVE A DATA SET THAT'S 19,004, AND IT'S 67 POINTS AS A, AS A SCIENCE NERD LIKE ME, YOU START TO GET VERY EXCITED BECAUSE YOU CAN HAVE VERY RELIABLE RESULTS. SO THIS MAP ON THE RIGHT HAND SIDE, YOU CAN SEE IS PUBLICLY ACCESSIBLE. WE CAN SHARE THAT WITH OUR PARTNERS WE ALREADY HAVE WITH K B AND OTHER ORGANIZATIONS AND OTHER DEPARTMENTS THAT SHOW, UH, WHERE THE HIGHEST INTENSITY TRASH LEVELS ARE. AND WE CAN ALSO, UH, IF, IF, FOR EXAMPLE, IF YOU LOOK ATHOLL CREEK ON THIS MAP, YOU'LL NOTICE AT THE VERY, ON THE LEFT HAND SIDE, IT SHOWS THE INTENSITY IN RED AND LOW INTENSITY AND YELP CORRELATE WEATHER WITH THE SOURCES. THERE'S ONLY ONE ENCAMPMENT IN THIS REACH, BUT THERE ARE MANY HIGH POINTS. SO THIS TELLS ME THAT, UM, THINGS LIKE, UH, DUMPING AND, AND OVERFLOWING DUMPSTERS ARE JUST AS BIG A PROBLEM. UH, THIS IS A HIGH DENSITY, UH, DATA POINT, UH, DATA GRAPH. AND I DON'T EXPECT ANYBODY TO, TO LOOK AT IT FOR TOO LONG. CAUSE IT, IT DOES STRAIN YOUR EYES. BUT THIS IS WHAT IT LOOKS LIKE WHEN YOU TAKE THAT MUCH DATA AND YOU CRUNCH IT DOWN BY WATERSHED AND YOU'LL, THE ONE, THE REASON I INCLUDE THIS GRAPH IS TO SHOW YOU THAT SOME TRASH, UH, SOME WATERSHEDS INCREASE IN TRASH AS YOU GO DOWNSTREAM. SOME WATERSHEDS INCREASE IN TRASH UPSTREAM, SOME WATERSHEDS. IT DOESN'T MATTER WHERE YOU ARE IN THE WATERSHED, THERE'S TRASH EVERYWHERE. AND THE DATA IS VERY MESSY, PUN INTENDED. THE GEOSPATIAL ANALYSIS. NOW WE CAN TAKE THAT AND WE CAN LOOK AT, AT DIFFERENT LEVELS. WE CAN LOOK RIGHT AROUND THE CREEK, THE RIPARIAN OWNERSHIP, WHICH TURNS OUT TO BE EXTREMELY IMPORTANT WHEN YOU'RE TALKING ABOUT TRASH CONTRIBUTION. OR YOU CAN LOOK OUT 3000 FEET AWAY FROM THE CREEK AND TRY TO START CORRELATE. WHAT TYPES OF LAND USE, IS IT SINGLE FAMILY RESIDENTS? IS IT MULTI-FAMILY? IS IT COMMERCIAL? YOU CAN LOOK AT HOW DENSE THE TRANSPORTATION IS, THE PARKING LOTS, IMPERVIOUS COVER, THE CENSUS POPULATION. ANYTHING YOU CAN HAVE IN GIS, THEN YOU CAN START TO CORRELATE TO, UH, TRASH INTENSITY. UNFORTUNATELY, JUST LIKE THE, UH, GOING UPSTREAM OR DOWNSTREAM GRAPHS, ALL THESE GRAPHS ARE VIRTUALLY FLAT. UH, SOME OF THEM TREND A LITTLE BIT, BUT THERE'S NO SIGNIFICANT STATISTICALLY SIGNIFICANT CORRELATION BETWEEN LAND USE, CENSUS TRANSPORTATION AT PARKS. AND THAT WAS VERY DISAPPOINTING TO ME BECAUSE NOW I CAN'T POINT TO A PROBLEM. I CAN'T HAVE A SMOKING GUN. I CAN'T SAY THEY ARE TO BLAME, UH, ONE WAY OR THE OTHER. BASICALLY THIS TRASH IN OUR, IN OUR ENVIRONMENT, IT GETS STOPPED IN AREAS OF CONSTRICTIONS AND AREAS OF, OF THICK VEGETATION. AND THAT'S WHERE IT ACCUMULATES. AND I THINK THAT IS PROBABLY WHY ANECDOTALLY PEOPLE HAVE SAID THE TRASH GETTING WORSE AND WORSE BECAUSE IT ACCUMULATES IN CERTAIN AREAS, IN CERTAIN HOTSPOTS. UH, WHAT IS OUT THERE IN THE CREEKS, VIRTUALLY EVERYTHING, ANYTHING YOU CAN BUY IN THIS TOWN IS IN OUR CREEKS. I SAW EVERYTHING, EVERYTHING FROM HOUSEHOLDS OFFICE, UM, FROM RETAILS, FROM RECREATION, CAMPING, RESTAURANTS, LANDSCAPING, UH, CONSTRUCTION, EROSION AND STABILIZATION CONTROLS. ALL THESE THINGS WE, WE PUT TO HELP THE ENVIRONMENT OR THEY FIND THEIR WAY IN THE CREEKS AS WELL. ROADWORKS INFRASTRUCTURE, EMERGENCY RESPONSE. I FOUND BAGS OF, OF HAZMAT STUFF. UH, TOYS FROM CHILDREN, CHILDREN ARE AT FAULT TOO. UM, [05:20:01] TELECOMMUNICATION CABLES, UH, WE ARE ALL, EVERY SINGLE ONE OF US IN SOMEWHERE OR ANOTHER IS SOMEHOW A A PART OF THIS. UM, SHOPPING CARTS, UH, I THINK IS IS THE ONE, THE ONE TAKEAWAY THAT I WAS, UH, REALLY APPALLED AT ACTUALLY. UH, I'VE SEEN SHOPPING CARTS IN CREEKS. IT'S, IT'S, IT'S, IT'S GROSS AND IT'S WEIRD AND THEY'RE COMPLETELY OUTTA PLACE. IT'S A VERY JUNK POSITION PROBLEM. BUT THERE WERE OVER 500 THAT WE SAW EASILY, UH, OVER 500 SHOPPING CARTS. MOST OF THEM HAVE THE, UH, THE PROPRIETOR'S NAME ON THEM. SO, UH, IT'S POSSIBLE THAT WITH, AS WITH SCOOTERS, WE COULD GET THE, UH, THE VENDOR OF THAT TO HELP RECLAIM THEIR MATERIAL. OF COURSE, I'M SURE THEY'RE NOT HAPPY ABOUT IT TOO. THEY'RE LOSING A LOT OF REVENUE BY THEIR MATERIALS BEING THERE. BUT THERE ARE STRATEGIES OUT THERE. PLACES IN PENNSYLVANIA DON'T LET YOU TAKE THE CART OFFSITE. THERE'S LOCKING WHEELS, THERE'S TOKENS TO GET THEM. SO THERE ARE STRATEGIES OUT THERE THAT, UH, RETAILERS CAN USE TO KEEP THEIR PROPERTY ON SITE. UH, A NICE LITTLE NUGGET. EVERYBODY LOVES A GOOD PIE CHART. UM, IS THAT OUT OF ALL THE TRASH WE FOUND BY VOLUME, UH, THREE QUARTERS OF IT IS FOUND IN ONLY 10% OF THE AREA. SO IN THE 110 MILES THAT WE WALKED 10 MILES OF, THAT IS THE AREA THAT HAS 75% OF THE TRASH. THAT TELLS ME THAT MAYBE KIND OF THE VOLUNTEER AND, AND CITY ORIGINATED, UH, LOCATIONS FOR CLEANUPS. MAYBE NOT AS STRATEGIC AS IT COULD BE. AND THERE'S A LOW HANGING FRUIT THERE, UH, THAT WE CAN SHARE WITH OUR PARTNERS AND WITH OURSELVES TO TRY TO IDENTIFY THE, THE HOTSPOTS. THESE AREAS, UH, NOT ONLY ARE THEY ACCUMULATING TRASH, BUT THEY ALSO ACT AS PROPAG DURING A RAIN EVENT THAT TRASH MIGHT WORK DOWNSTREAM. THE TREES AND THE SHRUBS ARE ACTUALLY HELPING US BY DETAINING THE TRASH. IT'S KINDA LIKE HAVING A, A BOOM IN THE CREEK. NATURE'S BOOM. UM, SO THE FIELD REPORT ITSELF, UH, PROVIDES LOTS OF RECOMMENDATIONS. TOO MANY TO TALK ABOUT TODAY. SOME OF THEM ARE VERY SITE SPECIFIC, AS IN THERE IS AN OUTLET HERE FOR A STORM CONTROL THAT WE REALLY NEED TO GET A HANDLE ON. CAUSE THERE'S A GOOD OPPORTUNITY TO LARGER, MORE BROAD RANGING THINGS, ENFORCEMENT, EDUCATION, AND THEN COORDINATION WITH OUR PARTNERS. SO THERE'S KIND OF MULTIPLE LEVEL OF RECOMMENDATIONS. THE BENCHMARKING REPORT ITSELF KIND OF FOCUSED ON THREE DIFFERENT STRATEGIES, AND ONE IS TO GET THE TRASH OUT OF THE CREEK ONCE IT'S THERE, WHICH TURNS OUT TO BE EXTREMELY EXPENSIVE AND, AND LABOR INTENSIVE AND HAZARDOUS AND UNPLEASANT. AND THE OTHER IS INTERCEPTION. HOW DO YOU KEEP IT FROM ONCE IT'S ON THE LANDSCAPE, HOW DO YOU KEEP IT FROM GETTING TO THE CREEKS? AND THEN THE LAST ONE IS, WELL, HOW DO WE KEEP IT FROM COMING INTO OUR COMMUNITY TO BEGIN WITH? HOW DO WE SLOW DOWN THAT, THAT STEM, THAT FLOW OF, OF ITEMS EXTRACTION? YOU SEE A BOOM HERE AND THIS SAYS THERE'S A TRASH COLLECTION DEVICE THAT MAY WORK IN SOME AREAS. WE HAVE NOT FOUND THAT TO WORK IN THE AUSTIN AREA BECAUSE IT FILLS UP TOO QUICKLY WITH ORGANICS, LEAVES, STICKS, UH, LOGS AND STUFF MAKE ABOUT 80% OF THE FLOATABLES. SO IT'S VERY DIFFICULT TO TWE THOSE OUT CURRENTLY. UH, FIELD OPS HAS A WONDERFUL CREW, THE LAKE CREW, WHICH HAS ALMOST A CONSTANT PRESENT ON THE LAKE AND THEY'RE REMOVING IT BY HAND. UH, THEY'VE ACTUALLY TRIED DIFFERENT, UH, TECHNIQUES TO TRY SCOOPING IT UP DIFFERENT AREAS AND BY HAND, BY FAR SEEMS TO BE THE MOST EFFICIENT AND EFFECTIVE. BUT WE CAN TARGET CLEANUPS AND HOTSPOTS AND WE CAN, WE'RE LOOKING AT USING BOOMS IN SMALLER AREAS AS WELL. THE NOVEL DEVICES, ALTHOUGH, UH, ENTICING IN THEIR APPEARANCE AND AND ROBOTIC STRUCTURAL NATURE, DON'T SEEM TO WORK TOO WELL FOR US BECAUSE REALLY YOU STILL HAVE TO TWE IT OUT IN THE, AND THEN MAINTENANCE IS KIND OF A LONG TERM PROBLEM AS WELL. THERE ARE OTHER PLACES THAT USE REALLY INTERESTING, HIGHLY VISIBLE, INCENTIVIZED COMMUNITY PARTICIPATION. UM, IN THIS CASE THERE, UH, I LIKE THE ONE THERE IN THE NETHERLANDS, YOU SEE A BUNCH OF HAPPY PEOPLE COLLECTING TRASH. NOT TOO MANY PEOPLE COLLECT TRASH HAPPILY, BUT THAT RAISES MORE THAN JUST COLLECTING A FEW, UH, BASKETBALLS OF TRASH. BUT IT RAISES BOTH AWARENESS AND, UH, KIND OF BRINGS THE PROBLEM TO HOME. UH, WE HAVE MANY VENDORS ON THE LAKE STAND AT PADDLEBOARDS AND KAYAKS. I THINK THERE'S AN OPPORTUNITY THERE OF PEOPLE IN THAT ENVIRONMENT THAT COULD, UH, THAT COULD MAYBE HELP CONTRIBUTE, UH, TO, TO SOME OF THE SOLUTION. UM, INTERCEPTION, OF COURSE, STOPPING FROM GETTING TO THE LANDSCAPE WITH OVERFLOWING DUMPSTERS. UH, WE DON'T HAVE THAT MANY RULES ABOUT, UH, DUMPSTERS THEMSELVES. UH, UH, AND MAYBE THAT'S SOMETHING TO LOOK AT. OBVIOUSLY, IF THERE IS A CLEAR AND PRESENT, UH, AMOUNT OF TRASH THAT CAN BE, UH, USED, YOUR THREE 11 APP, YOU CAN GET ON THREE 11 AND SAY, HERE'S, HERE'S A PROBLEM AND, AND, AND DO SOMETHING ABOUT IT. UH, TELECOMMUNICATION CABLES IS THERE WAS MILES AND MILES AND MILES OF TELECOMMUNICATION CABLES. UH, WHEN, UH, WHEN, WHEN A CABLE RIDER COMES AND CHANGES YOUR SERVICE, OFTEN THEY'LL JUST CLIP THAT AND LET IT DROP. AND IT'S NOT UP TO THEM BECAUSE IT'S NOT THEIR PROPERTY TO, UH, TO RECOLLECT IT. SO WE MIGHT WANT TO LOOK AT WHAT RULES ARE ASSOCIATED WITH THAT. UM, CAPACITY, PROXIMITY, ACCESSIBILITY. BOTH WALT DISNEY AND K B INDEPENDENTLY DID STUDIES AND THEY BOTH FOUND ABOUT 30 FEET. IF A CITIZEN IS MORE THAN 30 FEET FROM A TRASH RECEPTACLE, IT PROBABLY WON'T MAKE IT TO THE TRASH BECAUSE THEY'RE JUST RATHER THROW IT ON THE GROUND, WHICH JUST BOGGLES MY MIND. BUT IF YOU'RE IN AREAS THAT ARE VERY, VERY FAR FROM TRASH RECEPTACLES, LIKE IF YOU'RE ON THE LAKE IN A KAYAK AND YOU HAVE A PIECE OF TRASH, WHERE DO YOU GO TO THROW IT AWAY? YOU HAVE TO HOLD ONTO THAT WHOLE WAY. MAYBE, UH, SOME, SOME, UH, RIVER UH, VENUES HAVE A MESH BAG. THEY GIVE YOU A MESH BAG WITH THAT, OR THEY ATTACH IT TO THE KAYAK OR SOMETHING LIKE THAT. ANYWAY, STREET SWIPING, UH, OR DRAINER SYSTEM CONTROLS ARE WATER QUALITY PONDS. I THINK THERE ARE LOTS OF LITTLE OPPORTUNITIES OUT THERE CUZ THERE'S NO SILVER BULLET TO ADDRESS THIS. UH, EXCEPT FOR SOURCE REDUCTION, REALLY. UM, WE'VE BOUGHT THIS. WE'VE INCREASED OUR DEPENDENCE AS A, AS AN ENTIRE SOCIETY, AS A ENTIRE GLOBE ON SINGLE USE, UH, CONTAINERS, WHETHER IT'S STYROFOAM OR PLASTIC STYRES. UM, PACKAGING OVER [05:25:01] PACKAGING. THERE'S, UH, IF WE CAN SOMEHOW OR ANOTHER SOMEHOW REDUCE OR BE A PART OF THAT GROWING CONCERN TO REDUCE A SINGLE USE DEPENDENT SOCIETY, THEN WE'RE GONNA ADDRESS A LOT OF THE FLOATABLES THAT ARE, THAT ARE IN OUR ENVIRONMENT. THE BOTTOM LINE THAT I REALLY WANT TO TAKE TAKE HOME HERE IS THAT THE TRASH AND CREEK IS NOT ONE SOURCE. THERE'S NOT A MAJOR PLACE. IF WE ADDRESS THAT, WE'LL FIX IT. IF, IF WE SOLVE, UM, PEOPLE EXPERIENCING HOMELESSNESS TOMORROW, WE WOULD STILL HAVE TRASH IN OUR CREEKS FOR ETERNITY. UH, EXTRACTION IS NOT THE ANSWER BECAUSE WE'D STILL BE CLEANING IN ETERNITY. UM, REALLY, UH, OUR NEXT STEPS HERE IS THAT WE DO NEED TO IMPROVE OUR, THERE IS AN OPPORTUNITY TO IMPROVE VERY EFFICIENCY AND EFFECTIVENESS OF EXTRACTING, BUT ALSO INTERCEPTION AND REDUCTION AND, UH, THE RESULTS FROM THIS REPORT. UH, ALTHOUGH IT DOESN'T LIST A ROADMAP ON HOW TO GET US THERE WITH CLEAN CREEKS, IT IS A VERY LARGE TOOLBOX FOR A LOT OF DIFFERENT PROBLEMS THAT NEED TO BE FIXED. UM, SOME OF THE, THE LOW HANGING FRUITS THERE, OF COURSE WE CAN WORK WITH OUR PARTNERS. FOR EXAMPLE, UH, HEB WAS A WONDERFUL PARTNER WHEN THE BAG BAND CAME AROUND, EVEN THOUGH WE WEREN'T ABLE TO, UH, THE LEGISLATURE INHIBITED OUR ABILITY TO BAN THAT HEB WAS A GREAT PARTNER AND THEY KEPT, KEPT THAT GOING. SO I, I THINK VOLUNTARILY WE CAN WORK WITH A LOT OF, UH, OUT OF OUR COMMUNITY, WHETHER IT'S RETAIL OR WHETHER IT'S APARTMENT COMPLEXES OR, OR WHETHER IT'S OUR OTHER DEPARTMENTS, TO FIND SOLUTIONS THAT, UH, BIT BY BIT ARE GONNA REDUCE THAT PROBLEM. AND, UH, AT THIS TIME, I'D REALLY LIKE TO THANK A LOT OF PEOPLE. LELA GOSLIN WAS AN EXCELLENT RESEARCHER. WE PULLED HER OUT OF RETIREMENT JUST TO DO THIS. OF COURSE. UH, MY TEAM, UH, JEREMY WALKER, WE, WE BROUGHT HIM ON TO DO IT. HE WALKED MORE MILES THAN ANYBODY. AND, UH, WE HAD A GREAT DATA MANAGEMENT CREW, GIS, UH, SPECIALISTS, AND OF COURSE ALL THE PARTNERS WHO ARE OUT THERE IN THE TRENCHES WORKING ON GETTING RID OF IT. AUSTIN RESOURCE RECOVERY. UH, THEY ARE DOING STUFF LIKE THEY'RE COMING UP WITH A NEW, UH, COMPREHENSIVE PLAN SHORTLY AND THEY'VE GOT THE CLEAN CREEKS CREW THAT JUST CAME ON THIS LAST WINTER AND THEY'RE OUT IN THE CREEKS PULLING TRASH OUT. OF COURSE, PART HAS TO DEAL WITH THIS QUITE A BIT. UH, AND WE HAVE, UH, GROUPS LIKE KEEP AUSTIN BEAUTIFUL IN TWO, THE OTHER ONE'S FOUNDATION. AND OF COURSE ALL THE CONTRACTORS AND VOLUNTEERS THAT, UH, IN THEIR OWN TIME DO THIS. UH, THERE'S A NEW WORD I WANT YOU TO LEARN FOR THE DAY AND THAT'S PLUGGING P L O G G I N G PLUGGING. THE SWEDES CAME UP WITH THIS. WHEN YOU GO OUT JOGGING, YOU PICK UP A PIECE OF TRASH ON THE WAY, SO YOU'RE, YOU'RE PLUGGING, UH, NEW JERSEY, IT'S CATCHING ON. SO MAYBE, UH, WE CAN, UH, SOMEHOW ANOTHER HARNESS THE POWER OF THE JOGGING COMMUNITY TO START HELPING US PICK UP TRASH. AND WITH THAT, I'LL TAKE ANY QUESTIONS, COMMENTS, IDEAS. UH, WE'RE, WE'RE STILL WORKING ON TRYING TO FIND ALL THE SOLUTIONS HERE. , THE, UH, YOU KNOW, WHEN WHEN, WHEN I SAW THIS WORKING ITS WAY TO OUR AGENDA, I THOUGHT THERE WAS NO WAY THAT THIS WOULD BE PARTICULARLY INTERESTING , UM, REPORT. BUT IT WAS ABSOLUTELY FASCINATING AND REALLY WELL DONE AND, AND REALLY ANSWERED A LOT OF QUESTIONS THAT I REALLY DIDN'T EVEN KNOW THAT I HAD UNTIL YOU STARTED GIVING ANSWERS. SO THANK YOU FOR THAT. UM, PAIGE, YOU FOR RECOGNIZING ME FIRST. MAYOR, I KNOW IT'S BEEN A LONG TIME SINCE COUNCIL PASSED MY RESOLUTION AND I APPRECIATE THE CO-SPONSORS WORK ON IT AS WELL. THIS IS A REALLY FASCINATING REPORT THAT Y'ALL HAVE PUT TOGETHER. THERE IS A LOT OF REALLY DETAILED INFORMATION THAT CAN HELP US LEARN HOW WE NEED TO BE ADDRESSING THE SITUATION OF, OF THE DEBRIS ENDING UP IN THE CREEKS. UM, CAN YOU TALK A LITTLE BIT ABOUT HOW THE STAFFING UP OF THE CLEAN CREEK'S CREW, WHICH WAS CALLED OUT IN THIS RESOLUTION AS WELL, HOW IS THAT GOING, UM, AT THIS POINT IN TIME? GREAT QUESTION. COUNCIL MEMBER, AS YOU KNOW, THAT THAT CREW WAS PLACED UNDER AUSTIN RESOURCE RECOVERY CUZ WE'RE USING THE CLEAN COMMUNITY FEE. AND SO IT'S MY UNDERSTANDING THEY'RE STILL WORKING ON, UH, CREATING THE CREW, BUT THEY HAVE BEEN WORKING WITH OUR DEPARTMENT TO HELP PRIORITIZE AND TRAIN THAT THAT CREW AS THEY GO OUT THERE. UH, BECAUSE THIS IS A UNIQUE CHALLENGE WHEN YOU GO AND CLEAN A CREEK, YOU'RE NOT NEAR THE ROAD, YOU CAN'T JUST PULL UP TO THE TRASH, RIGHT? AND SO WE ARE PARTNERING, WE'RE WORKING WITH THEM, BUT I COULDN'T SPECIFICALLY GIVE YOU AN ANSWER ON HOW, HOW IT'S DOING. BUT WE'LL COME BACK TO YOU ON THAT. OKAY. I APPRECIATE THAT. CHECK-IN. WE'VE BEEN FOLLOWING ALONG THE WAY AND I THINK IT IS ALMOST COMPLETELY STAFFED UP. SO I KNOW IT'S BEEN HARD OVER THE YEARS, UM, TO, TO KEEP OUR AUSTIN RESOURCE RECOVERY CREWS WELL STAFFED, WHICH IS WHY WE FOCUS SO MUCH ON THEIR RECRUIT AND RETENTION STRATEGIES OVER THE PAST BUDGET CYCLE. UM, BUT I REALLY APPRECIATE THAT INFORMATION. I I THINK THERE'S SOME FOLKS OUT THERE THAT REALLY SEE THIS AND SEE THAT, UM, 10% OF THE AREA AND 75% OF THE DEBRIS, UM, AS ALL THE TRASH THAT THAT WE'RE SEEING PUBLICLY IS, IS DUE TO ENCAMPMENTS. AND EVEN THOUGH WE KNOW THAT ENCAMPMENTS CAN PRODUCE DEBRIS, IT'S REALLY IMPORTANT THAT WE FOCUS ON EACH OF THE STRATEGIES IN EACH OF THE LOCATIONS THAT IS CAUSING THIS. UM, CUZ I'VE ALSO SEEN, YOU KNOW, ILLEGAL DUMPING. UM, YOU KNOW, I'VE SEEN PLACES BEHIND BUSINESSES WHERE PEOPLE ARE, YOU KNOW, DUMPING HAZARDOUS MATERIALS INTO [05:30:01] DRAINS AND I'VE SEEN PEOPLE DROPPING OFF WASHING MACHINES BECAUSE THEY DON'T KNOW WHERE TO TAKE THEM OR THEY CAN'T AFFORD, UM, TO HAVE A PROFESSIONAL CREW COME AND DISPOSE OF THAT EQUIPMENT APPROPRIATELY. SO I LOOK FORWARD TO MAPPING OUT WHAT THE NEXT STEPS ARE GOING TO BE. UM, I'VE ALSO PARTICIPATED WITH KEITH AUSTIN BEAUTIFUL THAT YOU HAD MENTIONED, AND ALSO THE PARKS FOUNDATION, UM, DOING, IT'S MY PARK DAY AND THERE'S, THERE'S A LOT OF NEIGHBORS AND COMMUNITIES THAT KNOW EXACTLY WHERE THE DEBRIS ENDS UP, ESPECIALLY AFTER A RAINSTORM AND ARE USUALLY PRETTY WELL COORDINATED. SO IF YOU SEE THINGS NEAR YOU, THERE'S PROBABLY A BLOCK CAPTAIN, UM, THAT KNOWS EXACTLY HOW TO HELP OR, YOU KNOW, BRING IT TO YOUR CITY COUNCIL MEMBER'S ATTENTION SO THAT WE CAN HAVE THE CLEAN CREEKS CREW ADDRESS THAT. UM, COULD YOU SPEAK DIRECTOR BRIEFLY ABOUT HOW THE, THE CREW EXPECTS TO ROTATE THROUGH THESE DIFFERENT AREAS TO HELP MAINTAIN THE, THE HABITAT THAT IS IN THESE CREEKS? WHEN YOU REFERRED TO CREW, YOU WERE REFERRING TO THE WATERSHED CREW THAT ACTUALLY WENT OUT AND, UH, EVALUATED THE CREEKS COUNCIL MEMBER. OKAY, SO AS A, YEAH, CAUSE THE CLEAN CREEKS CREW IS GOING TO HELP ADDRESS, YOU KNOW, THE, A ROTATION SCHEDULE OF HOW THEY'RE GOING TO TARGET EACH CREEK AND HOW THEY'RE GONNA WORK THROUGH TO MAKE SURE, UM, THAT THEY'RE PICKING UP THE DEBRIS, BUT THEY'RE NOT JUST WAITING FOR THE PHONE CALL. THERE'S SUPPOSED TO BE SOME SORT OF MECHANISM TO SAY, YOU KNOW, GENERALLY WE KNOW THAT WE'RE GOING TO NEED TO BE DOING THESE, YOU KNOW, ROUTINE CLEAN UP. SO CAN YOU SPEAK A LITTLE BIT ABOUT HOW THAT IS PLANNED? ONCE AGAIN, COUNCIL MEMBER, THOSE CREWS FALL UNDER DIRECTOR SNIPES AND AUSTIN RESOURCE RECOVER, BUT I'LL GET WITH HIM SO WE CAN ACTUALLY PROVIDE YOU THE INFORMATION. WE DO COORDINATE OBVIOUSLY THE INFORMATION WE PROVIDED TODAY, POINTS WHERE WE SHOULD FOCUS AND HOW WE SHOULD ROTATE ON THAT. I DID WANT TO EMPHASIZE WHAT ANDREW SAID. THIS WAS ONLY ABOUT HALF THE CREEKS THAT WE DID FOR THIS STUDY. AND SO THERE'S MORE WORK FOR US TO ROTATE AND EVALUATE. AND I DON'T KNOW IF THAT'S SOMETHING ANDREW, YOU WANT, YOU COULD SPEAK TO WHAT THAT CYCLE MIGHT LOOK LIKE. UH, BUT AS IT RELATES TO CLEAN CREEK CREWS, I I WILL RESPOND BACK TO YOU SOON. SO, UH, YOU KNOW, WHAT WE FOUND, WE, WE FOUND THAT SOME OF THE HIGHER INTENSITY CREEKS ARE IN THE NORTH, IN THE SOUTH AND THE EAST ARE KIND OF ALL OVER TOWN. WE DIDN'T FIND ONE SPECIFIC ZONE OR ONE SPECIFIC AREA THAT WAS WORSE, UH, THAN ANOTHER. SO WE DON'T ANTICIPATE AT THIS TIME DOING ALL OF THE REST OF THE CREEKS. WHAT WE WOULD LIKE TO DO IS AFTER THESE MEASURES ARE IMPLEMENTED, WORKING WITH K B, WORKING WITH, UH, CLEAN CREEKS CREW, UH, OF COURSE, UH, PART IS WORKING ON THEIR LEAD NO TRACE PROGRAM. UM, UH, WATERSHED PROTECTION IS DOING OTHER THINGS LIKE, UH, YOU'VE HEARD OF ADOPT A CREEK, THERE'S ACTUALLY A DROP, ADOPT A DRAIN. NOW THERE'S, THERE'S LOTS OF STRATEGIES BEING IMPLEMENTED. WHAT WE'D LIKE TO DO IS AFTER THESE HAVE BEEN IMPLEMENTED A COUPLE YEARS FROM NOW, GO BACK AND REPRODUCE PART OF THIS STUDY IN A COUPLE AREAS AND SEE IF WE ARE TRENDING WORSE OR IF WE'RE TRENDING BETTER AND USE THAT AS A BAROMETER FOR THE REST OF THE CREEKS. THANK YOU. I APPRECIATE THAT. I, I KNOW THAT SOME OF THE COUNCIL DISTRICTS ON THE OUTSKIRTS OF TOWN DIDN'T GET ALL OF THEIR CREEKS EVALUATED AS WELL, SO I REALLY WANNA MAKE SURE THAT, THAT WE DO GET THROUGH THAT LIST AS MUCH AS POSSIBLE SO THAT NEIGHBORS KNOW EXACTLY HOW THEY CAN, YOU KNOW, HELP THEIR COMMUNITY OUT. OKAY. UH, KATHY AND THEN ANNE, UM, THANK YOU. THIS WAS REALLY AN INCREDIBLE, INCREDIBLE ANALYSIS AND REPORT AND THERE'S SO MUCH HERE. I HAVE ONLY HAD A TIME TO KIND OF READ THROUGH IT REALLY QUICKLY, BUT IT'S, THERE'S JUST A LOT OF, I THINK, NEXT STEPS THAT YOU'VE IDENTIFIED. AND SO, YOU KNOW, I'M NOT SURE, I'M NOT SURE WHETHER YOU INTEND TO BRING SOME OF THOSE FORWARD. I GUESS I'LL JUST INVITE YOU TO LET US KNOW ARE, ARE SOME OF, ARE THERE ACTION, IS THERE A LIST OF ACTIONS THAT YOU HAVE IN MIND TO BRING FORWARD TO COUNSEL FOR NEXT STEPS? OR ARE THESE, OR WOULD YOU LIKE US TO KIND OF MINE THIS REPORT AND IDENTIFY THINGS THAT WE PLAN TO BRING FORWARD AS RESOLUTIONS? OR A LITTLE BIT OF BOTH? OR SHOULD WE INVITE YOU, UM, AND COUNCIL MEMBER ELLIS, I WOULD BE REMISS IF I DIDN'T THANK YOU FOR YOUR LEADERSHIP ON THIS IN, IN BRINGING FORWARD THE RESOLUTION THAT, THAT PROMPTED THIS WORK, CUZ IT'S REALLY VERY VALUABLE. WELL, COUNCIL MEMBER, I'LL START, BUT I'LL LET ANDREW AND KATIE JUMP IN TOO. BUT LIKE ANDREW SAID, THIS IS A TOOLBOX FOR ALL OF US TO, TO TAKE PART OF, RIGHT? SO WATERSHED ALREADY HAS EDUCATION PROGRAMS. WE HAVE, UH, LATER CLEANUP PROGRAMS, OUR PARTNERS, OUR NONPROFITS THAT WORK WITH US. SO THERE'S A LOT THAT WE'RE DOING. THIS HELPS POINT US IN THE RIGHT DIRECTION. UH, THERE'S MORE WORK TO BE DONE, BUT AS YOU STATED, THIS PRESENTATION'S VERY INSPIRING EVER SINCE I SAW IT THE FIRST TIME FROM, FROM ANDREW. AND IT CONTINUES TO INSPIRE US AND I HOPE IT INSPIRES THE WHOLE COMMUNITY FOR US TO COME WITH NEW IDEAS TO THE TABLE. BUT WE'RE OPEN FOR ANY, UH, SUGGESTIONS FROM THE COUNCIL AND OUR COMMUNITY AS WE CONTINUE TO TACKLE THIS COLLECTIVELY. YEAH, GREAT. YEAH, I KNOW EVERYONE WAS HOPEFUL FOR A ROADMAP THAT SAYS, THIS IS WHAT WE NEED. I KNOW I'D LIKE YOUR, THIS IS LIST OF LIKE NEED TO DO WHEN YOU PLAN THEM IN AND, AND MORE OF A HARDWARE, ENTIRE HARDWARE STORE THAN A, THAN JUST A TOOLBOX. [05:35:01] UH, SO WHAT I WOULD SAY WAS THAT, UH, I WAS PLEASANTLY SURPRISED BY OUR OTHER SECTIONS, OTHER DEPARTMENTS IN INSIDE THE CITY. EVERY TIME WE CAME UP WITH A GREAT IDEA THAT WE FOUND IN THIS REPORT, WE HAD MENTIONED IT AND THEY SAY, OH YEAH, WE'VE ALREADY DONE THAT. UH, PART FOR EXAMPLE, SOLAR COMPACT SOLAR COMPACTING TRASH CANS SO THAT YOU DON'T HAVE TO GO TO THEM AS OFTEN. WOW, THAT SOUNDS REALLY GREAT. THE MAINTENANCE IS LOWER PART ALREADY TRIED IT AND IT DIDN'T WORK SO GOOD FOR OUR AREA. INLET PROTECTION FIELD OPS ALREADY TRIED IT. UM, THIS K B THING THAT I WAS TALKING ABOUT, SORRY, THE UH, UH, THE ADOPT DRAIN, THAT'S A GREAT IDEA. WE'RE ON IT. SO I, I FEEL LIKE A LOT OF THESE SUGGESTIONS THAT ARE IN HERE ARE ACTUALLY THINGS, OR AT LEAST THE THINGS THAT WE FOUND HAVE WORKED ARE THINGS THAT WE'RE, WE'RE ACTIVELY WORKING ON. SO I DO THINK THIS, UH, THIS REPORT DIDN'T COME OUT AND NOW WE SHOULD START THINKING ABOUT IT. MY, MY WONDERFUL COLLEAGUES HAVE, HAVE ALREADY STARTED MANY OF THESE THINGS. UH, MANY OF THEM, THE, THE MORE GADGETY, THE MORE THE, THE KIND OF INTERESTING THINGS, THE MR. WATERWHEEL AND, AND OTHER THINGS. UH, THE UPFRONT COSTS IS A LOT OF MONEY, BUT MORE THAN THAT, THE MAINTENANCE COST IS A LOT OF MONEY AND REALLY GOOD OLD FASHIONED ELBOW GREASE IS REALLY THE BEST WAY TO GET IT OUT. BUT AS FAR AS PROGRAMS TO KEEP IT OUT AND THEN MORE POLITICAL KIND OF INITIATIVES TO TRY TO REDUCE THINGS, I I THINK WE'RE, WE'RE KIND OF LOOKING PROGRAMMATICALLY FROM OUR, FROM OUR EXECUTIVES AND FROM Y'ALL. BUT, UH, WE, WE ARE ACTUALLY DOING A LOT OF THESE THINGS AND I'M PERSONALLY GONNA, NOW THAT THE BALL'S ROLLING, UH, FULL STEAM, I'M PERSONALLY GONNA PUSH SOME OF THESE FORWARD AND AND WORK FOR OTHER PEOPLE. YES. THANK YOU. UM, JUST A COUPLE THINGS THAT I WANTED TO POINT OUT, THAT'S VERY HELPFUL AND I, I DO THINK THERE'S A LOT OF MATERIAL HERE FOR COUNCIL TO, TO MINE AS WELL. UM, YOU KNOW, I'M REALLY STRUCK JUST A FEW THINGS BY TOURISTS USING ABOUT 30 PLASTIC BOTTLES PER PERSON FOR A TWO WEEK TRIP. YIKES. I MEAN, I TRY TO REMEMBER TO TRAVEL WITH MINE AND PROBABLY WE NEED TO DO A BETTER JOB ENCOURAGING OTHER PEOPLE TO DO THE SAME. AND, AND IF THAT'S REALLY WHAT'S LANDING, IF SOME OF THOSE ARE LANDING IN OUR CREEKS THROUGHOUT THE CITY, IT COULD BE A REALLY GOOD INVESTMENT TO GIVE PEOPLE A REUSABLE WATER BOTTLE WHEN THEY GET OFF THE PLANE IN A V I, UM, AND PROPS TO AUSTIN WATER. I WANNA GIVE A CALL OUT TO THEM BECAUSE THEY ARE PUTTING UP MORE WATERING STATIONS AROUND TOWN. AND THAT'S, THAT'S OUR SIDE OF THE BARGAIN IS WE CAN'T JUST, UH, EXPECT PEOPLE TO CHANGE THEIR BEHAVIOR UNLESS WE HELP ENABLE SOME OF THAT. EXACTLY. AND, AND THERE'S A PICTURE OF THOSE. THAT WAS MY RESOLUTION. IT WAS ACTUALLY SOMETHING THAT WAS SUGGESTED BY SOME INDIVIDUALS EXPERIENCING HOMELESSNESS AS A REAL NEED. AND, UM, BUT I, BUT THE WATER UTILITY GOT THAT DONE IN LIKE RECORD TIME AND THEY'RE BEAUTIFUL AND I'M SO GLAD WE HAVE THEM AND WE NEED MORE OF THEM. AND ACTUALLY MANAGER, WE HAVE, I ASKED A QUESTION, THE BUDGET Q AND A ABOUT WHAT THOSE COST AND HOW THEY COULD BE FUNDED AND WHERE WE NEED THEM. AND I WOULD SAY THAT'S, YOU KNOW, THAT IS, SHOULD BE ON SOMEBODY'S TO-DO LIST. I'M NOT SURE IF IT'S IF I'M GONNA BE ABLE TO GET THAT WHEN DONE BEFORE I LEAVE, BUT THEY'VE GOT A GREAT MODEL AND A GREAT PRODUCT AND I'VE JUST, THAT WAS ONE OF THE CITY PROJECTS THAT MOVED FORWARD FASTER THAN, THAN I CAN IMAGINE. UM, THANKS IN LARGE PART TO ASSISTANT DIRECTOR, UM, TO THE ASSISTANT DIRECTOR WHO WORKED ON THAT. I WANTED TO SAY TO, UH, ONE I WANNA GIVE A SHOUT OUT TO AS WE'RE THANKING YOU FOR THE WORK. WE DO HAVE ANOTHER MODEL. SOME OF OUR NEIGHBORHOOD ASSOCIATIONS HAVE BEEN DOING CREEK CLEANUPS FOR YEARS. YOU STARTED BY TALKING ABOUT THE GOLDEN CREEK, THE GOLDEN CREEK CREEKS, UM, AND THE STATE THEY'RE IN. AND THAT NEIGHBORHOOD ASSOCIATION HAS TAKEN ON ANNUALLY FOR DECADES, I THINK, UM, THE CLEANUP OF THAT AREA AND THAT'S A REALLY GOOD MODEL FOR OTHER, OTHER COMMUNITY ORGANIZATIONS AS WELL. AND YOU KNOW, I I JUST AS WE'RE TALKING ABOUT THIS SUBJECT ALSO, I WANNA INVITE MY COLLEAGUES. I THINK I ROOM FOR ONE MORE PERSON ON MY SINGLE USE PLASTIC UTENSIL RESOLUTION. SOME OF YOU ARE ALREADY CO-SPONSORS ON IT. UM, ASKING, DOING BASICALLY WHAT WE DO WITH WATER IN OUR RESTAURANTS OR WHAT WE DO IN FOR WATER IN OUR RESTAURANTS DURING TIMES OF DROUGHT, WHICH IS THAT YOU OPT, YOU HAVE TO OPT IN TO PLASTIC UTENSILS IF YOU'RE GETTING TAKEOUT. AND I THINK THAT HOPEFULLY WILL, WILL HELP REDUCE, WE'RE WORKING WITH THE RESTAURANT, WITH THE RESTAURANT ASSOCIATION, UM, IN REVIEWING AND GETTING THEIR FEEDBACK. BUT I EXPECT THAT TO COME FORWARD NEXT WEEK. SO AGAIN, THINK I HAVE ROOM FOR ONE MORE COUNCIL MEMBER IF YOU WANNA PARTICIPATE IN THAT. I, UM, HAVE PARTICIPATED WITH GOLDEN CREEK IN YEARS PAST ON THEIR CREEK CLEANING AND HAVE SEEN THE PLASTIC BAGS IN THE YEARS BEFORE THE BAND. AND, AND REMEMBER WHEN WE WERE ON COUNCIL, UM, TALKING ABOUT THE BAG BAN, SOME VERY STRONG VOICES AGAINST IT. AND ONE OF THOSE VOICES, ONE OF THOSE INDIVIDUALS CAME TO ME AFTER THE BAND PASSED AND SAID SHE HAD BEEN PARTICIPATING IN A CREEK CLEANING IN HER AREA AND COULDN'T BELIEVE WHAT AN IMPACT IT MADE. SHE WAS NOT A BELIEVER IN THE BAG BAND, BUT IT PASSED AND SHE COULD SEE THE VISIBLE IMPACT ON HER CREEK AND THEN OF COURSE IT GOT REVERSED. AND SO I JUST WANNA ADD MY THANKS TO PLACES LIKE HEB FOR CONTINUING TO GO BE GOOD PARTNERS IN THAT. BUT I CAN SEE THE DIFFERENCE AS I GO AROUND THE CITY. I CAN SEE THE DIFFERENCE, UM, SINCE THAT BAG BAND GOT OVERTURNED IN OUR CREEKS, JUST IN THE, YOU KNOW, TRASH BLOWING ON THE SIDE, A LOT OF IT IS THAT THAT LIGHTER PLASTIC BAG THAT IS JUST, UM, PICKED UP BY THE WIND AND CARRIED ALL OVER. SO THAT'S REALLY, REALLY UNFORTUNATE TO HAVE SEEN THAT BE OVERTURNED, BUT [05:40:01] NOT TO, NOT TO END ON A DARK, ON A TOUGH NOTE. BUT ANYWAY, THANK YOU ALL. THIS IS SUPER, SUPER HELPFUL AND VERY USEFUL RESEARCH. ALLISON, YOU WANNA CLOSE THIS OUT? I WAS NEXT. OKAY. SO, SO, UM, OKAY. UM, WANTED JUST QUICKLY TO ASK YOU ABOUT, UM, SO, SO THE GI THE, UM, THE GIS THAT YOU SET UP, THAT'S VERY HELPFUL. UM, SO YOU CAN GO IN AND ZERO IN ON A CREEK. SO I, I BASICALLY HAVE TWO QUESTIONS. SO FOR EXAMPLE, FOR WILLIAMSON CREEK, ARE, ARE YOU ALL AT THIS POINT THINKING IN TERMS OF SPECIFIC STRATEGIES FOR EACH CREEK? ARE WE STILL AT THE MORE GLOBAL, YOU KNOW, PHASE IN TERMS OF A LIST OF STRATEGIES THAT, BUT NOT TIED NECESSARILY TO EACH CREEK? UH, I WOULD SAY WE ARE NOT TIED TO EACH CREEK. UH, EACH CREEK EXPERIENCES A VERY DIFFERENT SET OF PROBLEMS. THAT'S TRUE. MM-HMM. IN WILLIAMSON CREEK, EVEN WITHIN WILLIAMSON CREEK, DIFFERENT SECTIONS HAVE VERY DIFFERENT PROBLEMS. MM-HMM. . BUT, UH, SINCE WE'RE NOT FOCUSING ON JUST THESE 20 CREEKS, WE'RE FOCUSING ON ALL 40 SOME ODD WATERSHEDS. UH, IT'S DEFINITELY GONNA BE MORE OF A, OF A GLOBAL IMPLEMENTATION THAN JUST SPECIFIC CREEK. OKAY. SO THERE'S NOT A A NEXT STEP FOR PARTICULAR PLAN FOR EACH CREEK? NOT AT THIS TIME, MA'AM. OKAY. SO THEN THE QUESTION MIGHT BE IF, IF THE NEIGHBORS AROUND THAT CREEK ARE INTERESTED IN, YOU KNOW, LEARNING WHAT CAN BE DONE EXACTLY FOR THAT CREEK AND HOW THEY MIGHT PARTICIPATE, WHAT'S, WHAT'S THE AVENUE FOR THEM? WHAT SHOULD THEY DO? CAN THEY REACH OUT TO YOU ALL? OR IS THERE ANOTHER AVENUE? OR MAYBE IF Y'ALL ARE STILL THINKING ABOUT THAT, THAT'S FINE, BUT DO YOU, SO THE PROGRAM THAT COUNCIL MEMBER, SO WAS TALKING ABOUT THE COMMUNITIES CAN WORK WITH, WITH NONPROFITS KEEP US AND BEAUTIFUL AND OTHER NONPROFITS, THAT'S A GREAT PROGRAM. SO THE INFORMATION THAT WE HAVE, THE DATA WE HAVE CAN HELP THOSE COMMUNITIES HONE IN ON IF YOU REALLY WANNA MAKE A DIFFERENCE WITHIN YOUR WATERSHED, WHERE DO YOU WANT TO HIT IT. SO, UH, WORKING WITH OUR EDUCATION TEAM, WE CAN COME BACK WITH ADDITIONAL STRATEGIES. OUR EDUCATION TEAM ALREADY WORKS WITH THE, THE YOUTH AND THE ADULT PROGRAMS THAT WE HAVE. BUT, UH, I THINK WE CAN COME BACK TO YOU WITH MORE INFORMATION ON THAT. OKAY. CAUSE I KNOW THAT YOU ALL DO CLEANUPS. MM-HMM. , BUT I MEAN, YOU'RE LIMITED, VERY LIMITED IN WITH YOUR RESOURCES. BUT, UM, I WOULD LIKE TO UNDERSTAND WHERE Y'ALL ARE AT RIGHT NOW IN YOUR PROGRAM AND WHAT YOU CAN DO ON CLEANUPS, CUZ THAT'S SOMETHING WE CAN SHARE THAT INFORMATION WITH NEIGHBORS. I'VE PARTICULARLY HEARD CONCERNS ABOUT ONION CREEK AND I KNOW YOU ALL HAVE OVER THE YEARS TOO, AND YOU'VE BEEN VERY HELPFUL IN RESPONDING TO ONION CREEK. SO ONION CREEK'S NOT ONE OF THESE THAT WAS REVIEWED. RIGHT. UM, IS THERE, IS THERE THINKING ABOUT REVIEWING IT AT SOME POINT OR WE MAY GO BACK AND, AND ADD SOME MORE WATERSHEDS TO TRY TO GIVE A FULLER PICTURE. UH, ONION CREEK IS A, IS A MONSTER. IT'S, IT'S ENORMOUS AND IT, YOU KNOW, WHERE WOULD YOU DRAW THE LINE? THE REASON WE CHOSE THESE PARTICULAR CREEKS WE DID WAS BECAUSE WE WANTED TO KEEP THEM WITHIN THE CITY LIMITS, WHICH IS WHERE MUCH OF OUR, OUR REACH IS GONNA BE. OF COURSE, THERE'S NOTHING STOPPING US FROM EXPORTING THESE IDEAS TO COMMUNITIES OF SATELLITE COMMUNITIES AROUND US, UH, AS, AS WELL. UH, WITH THIS TIME WE DON'T HAVE ANY PLANS TO DO MORE OF THE CREEKS, BUT I THINK THAT WOULD INFORM MORE AND WE, WE CERTAINLY COULD. THE REASON I'M ASKING THAT, I'M REALLY ONLY TALKING ABOUT THE PART OF ONION CREEK THAT THAT IMPACTS AUSTIN. THAT IS, UH, THE, YOU KNOW, THE ONION CREEK NEIGHBORHOOD. UM, AS YOU, AS YOU ALL KNOW, THEY HAVE, THEY CONTINUALLY HAVE CONCERNS ABOUT THE CREEK AND ABOUT TRASH IN THE CREEK AND THEY HAVEN'T REALLY HAD A WAY TO ADDRESS IT. SO, YOU KNOW, WE'VE, WE'VE SENT THEM OVER TO YOU GUYS OFF AND ON OVER THE YEARS AND, UM, IT IS, UM, IT'S KIND OF FRUSTRATING FOR THEM BECAUSE THEY'RE NOT QUITE SURE WHAT, WHAT TO DO OR WHAT CAN BE DONE. SO, AS A FOLLOW UP, MAYBE WE CAN HAVE ANOTHER CONVERSATION ABOUT, ABOUT ONION CREEK. THIS INFORMATION IS VERY, VERY HELPFUL AND, YOU KNOW, REALLY APPRECIATED. UM, BUT I'M NOT QUITE SURE WHAT TO DO WITH IT AND, YOU KNOW, IN TERMS OF THIS, OF, OF VERY TARGETED NEIGHBORHOOD ISSUES. SO, AND THAT'S REALLY MORE APPLICABLE TO ONION CREEK IN DISTRICT FIVE. WILLIAMSON CREEK HAS A NUMBER OF PLANS ASSOCIATED WITH IT THAT ARE BEING CARRIED OUT, YOU KNOW, WITH, WITH PART AND WITH OTHERS. SO, UM, AND WHAT YOU'VE DONE WITH WILLIAMSON CREEK CAN BE SHARED WITH THOSE NEIGHBORS. ONION CREEK THOUGH, YOU KNOW, THEY, THEY, THEY CONTINUE TO BE CONCERNED AND THEY'RE ALSO CONCERNED THAT WITH TRASH IN THE CREEK BED, THAT IT'S GOING TO CONTRIBUTE TO FLOODING. NOW I KNOW WE'VE HAD THOSE CONVERSATIONS BEFORE AND THEY MAY, MAY OR MAY NOT CONTRIBUTE TO FLOODING, BUT THAT COMMUNITY IS ONE THAT EXPERIENCED QUITE A BIT OF FLOODING, YOU KNOW, REALLY EMERGENCY, SERIOUS FLOODING A NUMBER OF YEARS BACK. AND SO THAT CONTINUES TO BE A CONCERN. SO, SO PERHAPS WE COULD FOLLOW UP ON IT. THAT'S ANOTHER ASPECT OF THINKING ABOUT TRASH IN THE CREEKS. THAT'S IMPORTANT. THANK YOU FOR THAT. COUNCIL MEMBER. YES. [05:45:01] AND WE, WE RECOGNIZE THE CONCERNS IN ION CREEK. YEAH. AND WE'LL CONTINUE THAT DIALOGUE SPECIFICALLY TO THE NEIGHBORHOOD YOU'RE TALKING ABOUT AND SEEING HOW WE CAN CONTINUE TO PARTNER WITH NONPROFITS IN ADDITION TO THE RESOURCES WE HAVE. SO WE'RE COMMITTED TO DOING THAT. RIGHT. THANK YOU. I'LL BE QUICK. UM, SO THIS IS REALLY, UM, VERY INFORMATIVE AND IT SOUNDS LIKE THERE ARE A LOT OF VERY ACTIONABLE IDEAS IN IT. I WANTED TO ASK THE CITY MANAGER, UM, YOU KNOW, I THINK COUNCIL MEMBER ELLIS FOR HER LEADERSHIP, AND SHE MAY HAVE DIFFERENT PLANS, BUT IT, IT SEEMS LIKE YOU COULD JUST DO A FOLLOW UP THAT TELLS US WHAT YOU'RE GONNA DO IN RESPONSE TO THE REPORT IN TERMS OF NEXT STEPS AND SHARE A MEMO OR SOMETHING BACK WITH US. UM, RATHER THAN US HAVING TO GO THROUGH A WHOLE NOTHER RESOLUTION AND TRY TO PICK OUT THE THINGS. CUZ I THINK YOU PROBABLY HAVE A GOOD IDEA OF WHAT YOU CAN PRIORITIZE. YOU'VE ALREADY HAD THE CONVERSATIONS, IT SEEMS LIKE IT'S JUST EXTRA WORK FOR US TO HAVE TO GO AND DO ANOTHER RESOLUTION WHEN YOU COULD COME BACK IN A MONTH AND SAY, THESE ARE THE THINGS THAT WE'RE WORKING ON THAT WE WANNA PRIORITIZE, AND THEN WE ALWAYS HAVE THE OPPORTUNITY TO, TO DO ADDITIONAL WORK. I DON'T KNOW WHAT WOULD BE APPROPRIATE, BUT IT, IT SEEMS LIKE WE'RE JUST ADDING ANOTHER STEP FOR THE, LIKE, I, I DON'T WANT YOU TO STOP DOING STUFF BECAUSE WE DIDN'T GIVE YOU DIRECTION, BUT I ALSO THINK WE SHOULD BE MOVING ON SOME PORTION OF THIS AND I'D LIKE TO HAVE A ROADMAP FOR THAT. YEAH, THANK YOU MAYOR FOR TIM. I, I COULDN'T AGREE MORE. I THINK THERE'S, THERE'S NO STOPPING THIS, THIS WORK MOVING FORWARD. IT'S AN ALL, I MEAN, WE ALL CONTRIBUTE TO THIS ISSUE IN THIS CITY AND IT'S AN ALL HANDS ON DECK APPROACH TO ADDRESSING IT THROUGH ALL THESE STRATEGIES. AND AS ANDREW OUTLINE, THERE'S CERTAIN ONES THAT WE'VE CHECKED OFF THAT WE'VE ALREADY STARTED MOVING ON. UH, AND IT'S, IT'S WORK ACROSS DEPARTMENTS. SO WITHOUT ACTION FROM YOU THAT DOES NOT CHANGE THAT WE WILL BE PRIORITIZING THIS WORK MOVING FORWARD AND IF A MEMO IS HELPFUL, WE'LL FOLLOW THE CITY MANAGER'S DIRECTIVE ON, ON PROVIDING WHATEVER FOLLOW UP IS APPROPRIATE. AND, AND JUST TO ADD ON, I MEAN THAT COULD INCLUDE THEN, YOU KNOW, RECOMMENDATIONS FOR IF THERE ARE POLICY CONSIDERATIONS, UH, THAT WOULD COME, UH, IN THE FORM OF RESOLUTION, BUT THAT WOULD BE MORE TARGETED SPECIFIC AND COMING FROM STAFF TO THAT POINT. I, I AGREE WITH YOU THAT WE'LL JUST PROVIDE AN UPDATE AND THEN, UH, THERE WILL BE THINGS THAT MAYBE, UH, WOULD BE HANDLED ON THIS SIDE OF THE DIAS, UH, THAT WE CAN RECOMMEND FOR YOU TO MOVE FORWARD. CERTAINLY IF THERE'S POLICY CHANGES THAT NEED TO HAPPEN. RIGHT. UM, BUT I SEE COUNCILS ALSO WANTS TO CHIME. PAIGE? PAIGE, I THINK YOU MIGHT BE STUCK. OKAY, I THINK I'M BACK. YOU'RE BACK. OKAY. UM, I, MY INTENT WOULD BE TO HANDLE IT SIMILARLY TO THE WAY THAT WE DID THE URBAN TRAIL STAKEHOLDER GROUP. AND I THINK IN THAT MEMO, UM, THERE WAS VERY SPECIFIC INFORMATION ABOUT WHAT WOULD BE HANDLED ADMINISTRATIVELY AND MOVED FORWARD AND WHICH ONES WOULD TAKE COUNCIL DIRECTION, LIKE AN ORDINANCE CHANGE OR SOME OTHER LEVEL OF, UH, UPDATE TO POLICY THAT COUNCIL HAS PREVIOUSLY APPROVED. SO AS LONG AS WE HAVE THOSE DETAILS, WE'RE HAPPY TO KEEP THE BALL MOVING AND TO WORK WITH, YOU KNOW, ANY CO-SPONSORS WHO ARE INTERESTED. CUZ I DEFINITELY WANNA KEEP MOVING FORWARD ON THIS AND JUST APPRECIATE KNOWING STAFF'S INTENT IS TO DO WHAT THEY CAN ADMINISTRATIVELY. UM, BUT JUST TO HAVE IT SPELLED OUT VERY CLEARLY WOULD BE HELPFUL FOR ALL OF US. OKAY. THAT WOULD BE HELPFUL. THANK YOU, LESLIE, ON ANOTHER TOPIC. ARE WE DONE WITH THIS ONE? OKAY. UH, THANK YOU ALL FOR THE PRESENTATION AND THANK YOU FOR BEING WITH US. ACTUALLY, I'M SORRY, HANG ON A SECOND. COUNCIL MEMBER HARPER MADISON. THANK YOU. I APPRECIATE IT. AND THIS MAY OR MAY NOT BE FOR THIS PANEL OF FOLKS, BUT I THINK THEY COULD PROBABLY POINT ME IN THE RIGHT DIRECTION. I HAD A REALLY INTERESTING CONVERSATION WITH ONE OF OUR CONSTITUENTS RECENTLY WHO'S GOT AN IDEA THAT THEY WOULD ACTUALLY PERSONALLY LIKED TO FUND. AND IT WAS AN IDEA ABOUT, UM, FREE KAYAK RENTALS FOR PEOPLE WHO COULD CLEAN UP TRASH WHILE THEY USED THE FREE KAYAK. UM, SO LIKE THE, THE COST OF THE KAYAK IS A BAG OR TWO A TRASH. UM, WHO WOULD I POINT, WHAT DIRECTION SHOULD I POINT THEM IN TERMS OF, UH, REALLY PUT SOME SOME LEGS UNDERNEATH THAT IDEA? THANK YOU FOR YOUR QUESTION. COUNCIL MEMBER. UH, I, I WOULD THINK THAT THE APPROPRIATE FOLKS WOULD BE TO WORK THROUGH THE FOLKS IN PART WHO DEAL WITH OUR VENDORS ON THE LAKE. UH, AND WE'RE HAPPY TO THANK YOU. ALSO BE A PART OF THOSE CONVERSATIONS. AWESOME. APPRECIATE IT. SURE. OKAY. ANYONE ELSE FOR THIS, UH, PRESENTATION? GROUP MANAGER. THANK YOU. THANK YOU ALL. FASCINATING REPORT. THANK YOU AGAIN, LESLIE. I WANTED TO RETURN [A. Pre-Selected Agenda Items (Part 2 of 2)] TO THE AUSTIN ENERGY ITEM, UM, TO TALK A LITTLE BIT. I PICK IT UP ON THURSDAY OR WHETHER WE CAN, UM, HAVE STAFF WITHDRAW IT, UH, AND SET THE PUBLIC HEARING FOR ANOTHER DATE. AND I HAD ASKED THE CITY ATTORNEY WHAT WE MIGHT OR MIGHT NOT BE ABLE TO DO. I'D LIKE TO SIGNAL TO THE PUBLIC SO THAT, UM, THEY, [05:50:01] THEY DON'T COME DOWN AND TALK SINCE IF WE'RE LOOKING AT EITHER POSTPONING IT OR WITH POSTPONING IT OR WITHDRAWING IT, THEN WE CAN REMOVE THAT ITEM FROM THE CONVERSATION. I THINK FOR, FOR, I REALLY APPRECIATE YOU BRINGING IT UP THAT HAD A CONVERSATION LATE THIS MORNING. STAFF, UM, UH, BECAUSE OF NOTICE, UH, ELEMENTS, UH, HAS, UH, INDICATED THAT ON THURSDAY THEY'RE GONNA MOVE TO POSTPONE, UH, ITEM NUMBER 71 TO 10 13. OKAY. UH, BUT I THINK THAT THE STATUTE RECOMMENDATIONS, THAT'S HOW WE HANDLE IT. OKAY. THAT MEANS THAT PEOPLE WHO COME, IF THEY TALK, IT'S ONLY TO TALK ON THE POSTPONEMENT, BUT IT, THAT DOES TEND TO END UP TALKING ABOUT THE MERITS, BUT I DON'T THINK THERE'S ANY OPPOSITION TO IT BEING POST. I DON'T THINK THERE'S ANYBODY WHO WANTS US TO TAKE IT UP AS OPPOSED TO BUY SOME MORE TIME. SO I GUESS WHAT I WOULD SAY TO FOLKS LISTENING IN IS SAVE, SAVE YOUR, YOUR COMMENTARY FOR WHEN WE ACTUALLY TAKE IT UP AS AN ISSUE AND, AND INSTEAD OF COMING THIS SERVES THIS, THERE CERTAINLY BE MORE TO TALK ABOUT AT THAT POINT AS WE GET ANSWERS TO THE QUESTIONS THAT WERE ASKED AND, AND WE WON'T IN FACT HAVE A PUBLIC HEARING ON THIS ITEM ON THURSDAY. THAT'S CORRECT. OKAY. WE'LL SET THAT FOR BE CHANCE. OBVIOUSLY WE GET CALLED, UH, AS ALL ITEMS ON THE AGENDA ARE, BUT ANTICIPATED BEING POSTPONED TO THE 13TH ALSO, ITEM 39 BEING POSTPONED TO 10 27 AND ITEM 40 BEING POSTPONED TO 10 13. THOSE ARE THE TWO TENANT LANDLORD, UH, ISSUES. UH, ALSO, UH, UH, BEING POSTPONED, UH, IS ITEM NUMBER 70. WE'VE RECEIVED A MEMO ON THAT NOW. THAT'S THE ENVIRONMENTAL ORDINANCE BEING POSTPONED TO, UH, 10, UH, 13 COUNCIL MEMBER KITCHEN. UM, I WANTED TO MAKE SURE I HEARD YOU RIGHT. SO BOTH OF THE ATOS WERE RELATED TO TENANT, THE TENANT ORGANIZING AND THE TENANT EVICTION. BOTH OF THOSE WERE BEING POSTPONED. YES. THE ONE ON TENANT ORGANIZING NUMBER 40 WILL BE POSTPONED TO 10 13 AND THE OTHER ONE ON NOTICE, UH, ITEM NUMBER 39 WILL BE POSTPONED AT 10 27. OKAY, THANK YOU. OKAY. WHAT WAS THE NUMBER FOR THE ENVIRONMENTAL ONE? THE ENVIRONMENTAL ONE IS ITEM NUMBER 70 AND WE'VE RECEIVED A, A MEMO ON THAT. I THINK PLANNING COMMISSION IS CONSIDERING IT, UH, THIS, UH, THIS WEEK. ALL RIGHT, SO CONTINUING ON, UH, WHERE WE WERE. I THINK THAT, UM, UH, WITH RESPECT TO THE, TO THE MEETING ON THURSDAY AND TALKING TO, UH, UH, COUNCIL MEMBER HARPER MADISON, HER, UH, DESIRES TO BE ABLE TO BE HERE TO PARTICIPATE IN THE HEALTH SOUTH ITEM. UM, AND THAT WOULD BE THE ONE ITEM THAT SHE WOULD LIKE TO GET CALLED IN THE MORNING. SHE'S WITH US POTENTIALLY UNTIL 1230. UH, I DON'T KNOW HOW MANY AMENDMENTS THERE ARE GOING TO BE ON HEALTH SOUTH. I DON'T ANTICIPATE A LOT. UH, BUT I'M GONNA POST SOMETHING ON THE MESSAGE BOARD TO INVITE THAT. IF IT DOES NOT LOOK LIKE THERE ARE MANY AMENDMENTS OR IT'S GONNA TAKE AS MUCH TIME, IT WOULD BE MY INTENT TO MAKE SURE. SURE. WE CALLED THAT BEFORE 1230. UH, SO IT'S POSSIBLE THAT I COULD CALL HEALTH SOUTH AFTER SPEAKERS AND EVEN BEFORE WE DO CONSENT, IN ORDER TO ENABLE COUNCIL MEMBER HARPER MEDICINE TO BE HERE. COUNCIL MEMBER KITCHEN. UM, AT THIS TIME, I WAS GONNA TELL YOU ABOUT MY SCHEDULING DIFFICULTIES FOR THURSDAY. I, I JUST HAVE TO BE, UM, I HAVE TO MAKE A PRESENTATION AND I WILL HAVE TO LEAVE AT 1215, SO I'LL BE GONE FROM 1215 TO ABOUT, UH, PROBABLY ABOUT ONE 15. OKAY. POSSIBLY ONE 30. HELPFUL. THANK YOU. CATCH TOVO. UM, MAYOR, THERE MAY BE, I MAY HAVE SOME QUESTIONS THAT NEED TO BE ASKED IN EXECUTIVE SESSION ABOUT HOW SOUTH IT, IT DEPENDS A LOT ON WHETHER OR NOT THERE'S A COUNCIL MAJORITY TO SEPARATE NEGOTIATION AND EXECUTION, BUT THERE ARE A COUPLE QUESTIONS. IF WE'RE, IF THERE IS AN INTEREST IN MOVING FORWARD WITH BOTH, THEN I'M GONNA HAVE TO HAVE A MORE EXTENDED CONVERSATION LIKELY LARGELY IN, IN EXECUTIVE SESSION. OKAY. FOR THE REASONS I GAVE THIS MORNING, I'M COMFORTABLE SPLITTING THOSE TWO. UH, BUT LET'S, ONE OF US, AS PART OF THE OTHER QUESTION, ASKED THAT QUESTION OF OUR COLLEAGUES, UM, UH, ON THE MESSAGE BOARD, UH, AND I'M HAPPY TO INCORPORATE THAT INTO MY GENERAL QUEST. I'LL GO AHEAD AND ASK THAT QUESTION TOO. UM, MY SENSE WAS WE OUGHT TO BE ABLE TO HAVE THIS PLAY OUT THAT WAY IN THE MORNING, BUT LET'S SEE. ALL RIGHT, UH, WE HAVE, UH, THREE ITEMS TO DISCUSS. UH, ITEM 53, ILA 54 ILA, AND THEN COUNCIL MEMBER TOVO, ITEM NUMBER 92, IF YOU WANTED TO DISCUSS IT WITH THOSE THAT WERE LEFT. I DON'T KNOW IF YOU WANT TO ELEVATE THE ILA QUESTIONS. I, I DO. OKAY, GO AHEAD. DID, DID WE HAVE MORE SCHEDULING FOR THURSDAY? YOU KNOW, MULTIPLE PEOPLE HAVE ASKED IF WE COULD GIVE SOME SENSE OF WHAT WE THINK THE BIG ISSUES ARE AND HOW LONG IT'S GONNA TAKE. I MEAN, I SEE THE STATESMEN AS A CONVERSATION. WE MAY HAVE A LOT OF SPEAKERS. ARE THERE OTHER, WE, I DON'T KNOW THAT WE'VE SET A TIME CERTAIN FOR THAT, AND I THINK THAT'S BEEN REQUESTED. I'M NOT [05:55:01] SURE WHETHER IT WAS AN APPLICANT REQUEST OR OTHERS, BUT, BUT I THINK IT'S A GOOD IDEA. IT'S HARD TO REALLY SET NEW SPEAKERS WILL BE CALLED FOR THAT. UH, YOU KNOW, AT THE, EITHER THE, THE, THE MORNING TIME OR THE, UH, THE, THE, THE AFTER THE AFTERNOON TIME, I THINK THE, THE STATESMAN PROUD IS REALLY THE BIG ONE BECAUSE THE OTHER ONES SEEM TO BE, YOU KNOW, BEING POSTPONED AND, AND, AND PUT OFF. UM, AND WE'VE RESOLVED POTENTIALLY I THINK THE, THE HEALTH SOUTH MATTER, THE EVICTION STUFF WAS MOVED. WATER QUALITY, FUNCTIONAL GREEN AUSTIN ENERGY PASS THROUGH. YEAH. UM, BEING MOVED. UM, THAT'S KIND OF MY ASSESSMENT TOO, I THINK. I THINK THERE ARE NOT THAT MANY ITEMS THAT ARE GONNA GENERATE A LOT OF CONVERSATION. I THINK THAT'S RIGHT. OKAY. SO WITH REGARD TO THE ILA, UM, SEVERAL OF US ASKED QUESTIONS IN LAST TIME'S BUDGET Q UH, COUNCIL BUDGET, COUNCIL Q AND A, BUT I REALLY NEED TO HAVE THAT CONVERSATION A LITTLE BIT MORE FULLY WITH OUR STAFF. SO IT IS MY, YOU KNOW, PART OF THIS IS COMING FROM A CONVERSATION THAT WE'VE BEEN HAVING AT THE SOBERING CENTER AND THE SOBERING CENTER NOW USES NON P D OFFICERS BECAUSE, BECAUSE THE STAFFING SITUATION AT THE CITY OF AUSTIN WAS CREATING, UM, A SHORTAGE FRANKLY FOR OF OFFICERS WHO ON AN OVERTIME BASIS WOULD BE ABLE TO, TO, UM, STAFF THE SOBERING CENTER, WHICH HAD BEEN A LONGSTANDING, AS, YOU KNOW, A LONGSTANDING, UM, PARTNERSHIP AND, AND CONTINUES. I WILL SAY APD HAS BEEN A TERRIFIC PARTNER OF THE SOBERING CENTER, SO I DON'T MEAN TO SUGGEST OTHERWISE, BUT IN TERMS OF THAT ONSITE SECURITY, INITIALLY THERE HAD BEEN A REQUEST THAT IT'D BE APD STAFF AND THAT'S NO LONGER THE CASE IN PART BECAUSE OF THE STAFFING ISSUES AND THE VACANCY ISSUES HERE AT THE CITY OF AUSTIN WITHIN APD. SO I WAS SURPRISED, AND OF COURSE WE'RE TALKING A LOT ABOUT VACANCIES AND THAT'S BEEN A PRIORITY THAT WE'VE TALKED A LOT ABOUT AT COUNCIL IN RECENT, CERTAINLY IN RECENT MONTHS ABOUT THE STAFFING CHALLENGES AND THE, AND, UM, THE WAY IN WHICH THAT IMPACTS OFFICER MORALE IF THEY'RE BEING, YOU KNOW, CALLED IN TO WORK OVERTIME SHIFTS OR BEING REQUESTED TO WORK OVERTIME SHIFTS. SO I WAS SURPRISED TO SEE THESE TWO ILAS COMMITTING OUR OFFICERS, UH, TO WORK ON AN OVERTIME CAPACITY WITH THESE OTHER ENTITIES, UT AND, AND THE STATE. AND SO I ASKED THE QUESTION ABOUT WHETHER IT IMPACTS APD STAFFING AND GOT BACK THE ANSWER THAT IT DOESN'T, BUT NEED TO, YOU KNOW, CERTAINLY THE SITUATION IS MORE COMPLEX THAN THAT BECAUSE AS WE, AS WE APPROACH ISSUES LIKE, OR TIMES LIKE SPRING FESTIVAL AND OTHERS, MANY OFFICERS, IT'S MY UNDERSTANDING, DO COME IN AND WORK, UM, ON AN OVERTIME BASIS AND, AND WE'RE FILLING SOME OF OUR STAFFING THROUGHOUT THE CITY ON AN OVERTIME BASIS. AND SO I WOULD THINK THAT THESE CONTRACTS DO INDEED IMPACT OUR ABILITY TO DO THAT. SO THAT'S MY OBSERVATION, THAT'S MY POINT, BUT I WOULD LIKE STAFF TO RESPOND TO THAT. PLEASE. GOOD AFTERNOON. UM, HAPPY TO, TO TOUCH ON THAT. UM, SO THERE ARE A NUMBER OF EVENTS AT THE UNIVERSITY OF TEXAS THAT REQUIRE A LOT OF POLICE OFFICERS TO KIND OF ORGANIZE THE, THE MASSIVE AMOUNT OF PEDESTRIAN AND BEH TRAFFIC THAT ENSUES. AND IT'S NOT ALL ON THE UNIVERSITY OF TEXAS CAMPUS. A LOT OF IT SPILLS OVER TO THE CITY OF AUSTIN, UH, IN ALL DIRECTIONS. UH, SPECIFICALLY THE FOOTBALL GAMES. WE HAVE SIX TO EIGHT HOME FOOTBALL GAMES A YEAR. UM, THERE'S A HUNDRED THOUSAND PERSON CAPACITY INSIDE THE STADIUM WITH ANOTHER, ANYWHERE FROM 50 TO A HUNDRED THOUSAND PEOPLE OUTSIDE THE STADIUM DEPENDING ON THE POPULARITY OF THAT PARTICULAR FOOTBALL GAME. AND MANAGING THE CROWDS IS NOT JUST A, AN ISSUE THAT IS FOR THE UNIVERSITY, BUT WE HAVE TO THINK ABOUT THE DOMINO EFFECT OF WHAT HAPPENS IF WE DON'T MANAGE THAT EFFECTIVELY AND HOW IT AFFECTS THE REST OF THE CITY. SO WHAT WE'VE SEEN OVER THE YEARS IS WE DEPLOY A STRATEGY OF APD OFFICERS WHO VOLUNTARILY SIGN UP FOR THE OVERTIME, AND, UH, THEY HAVE A REALLY GOOD SYSTEM TO GET PEOPLE IN AND OUT AS QUICKLY AS POSSIBLE. THE UNIVERSITY OF TEXAS POLICE OFFICERS AND THE TRAVIS COUNTY SHERIFF'S OFFICE TAKE CARE OF THE INSIDE OF THE STADIUM AND THE IMMEDIATE SURROUNDING, UH, STREETS OF THE STADIUM AND APD HANDLES THE INGRESS AND EGRESS OF PEDESTRIANS VEHICULAR TRAFFIC FOR THE DAY OF THE EVENT. AND WHAT WE'VE FOUND IS THAT, UH, FIRST OF ALL, WE ARE ABLE TO KIND OF INSULATE THE REST OF THE CITY, UH, THE ON DUTY OFFICERS WHO ARE HANDLING THE REST OF THE CITY'S NINE ONE ONE PHONE CALLS AND PATROL EFFORTS, UH, SO THAT THEY DON'T HAVE TO HANDLE WHAT MIGHT SPILL OVER FROM THE EVENT. AND WE'RE ALSO ABLE TO REDUCE THE NINE ONE ONE PHONE CALLS THAT COME IN BY MANAGING THAT, UH, PEDESTRIAN VEHICULAR TRAFFIC APPROPRIATELY. IF WE DIDN'T HAVE OFFICERS THERE, UM, YOU KNOW, WE'RE GONNA HAVE BACKUPS, WE'RE GONNA HAVE TRAFFIC JAMS, WE'RE GONNA HAVE FENDER BENDERS THAT GENERATE MORE CALLS FOR SERVICE. SO NOT ONLY ARE WE ABLE TO KIND OF KEEP PEOPLE AND, UM, IN THE VEHICLES FROM [06:00:01] GETTING INTO ACCIDENTS, BUT WE'RE ABLE TO INSULATE THE REST OF THE CITY FROM THAT. WE HAVEN'T SEEN THAT THERE'S BEEN A STAFFING, UH, SHORTAGE IN REGARDS TO PEOPLE GOING TO FILL OVERTIME FOR THE REST OF THE CITY. AND, UM, YOU KNOW, QUITE HONESTLY THE, THE OVERTIME IN TERMS OF MORALE, I THINK IT'S A GREAT QUESTION. I'M GLAD YOU ASKED IT. THE UT UH, OVERTIME FOOTBALL GAMES ARE CONSIDERED KIND OF A, A GOOD PLACE TO GO WORK, UH, TO GET AWAY FROM PATROL AND, AND TO HAVE, UH, MORE OF A LIGHTHEARTED AFFAIR. IT'S, IT'S USUALLY A FUN EVENT. PEOPLE ARE IN A GOOD MOOD AND THE OFFICERS ENJOY THAT EXPERIENCE. UM, SO I DON'T THINK THAT IT AFFECTS STAFFING. I THINK IT ACTUALLY HELPS BECAUSE IF WE DIDN'T HAVE OUR OFFICERS THERE, IT WOULD GENERATE MORE CALLS FOR SERVICE AND AFFECT OUR NORMAL PATROL OPERATIONS IF WE WEREN'T THERE. AND, UM, DO YOU WANT ME TO PAUSE FOR QUESTIONS OR HIT THE NEXT, UH, ITEM NUMBER ON THE TEXAS DEPARTMENT OF TRANSPORTATION AT THE SAME TIME? WHY DON'T YOU GO TO THE NEXT ITEM? OKAY. SO, UH, TECH DOT, THEY HAVE ONE MEETING A MONTH THAT'S ONLY FOUR HOURS, AND WE HAVE TWO OFFICERS AT THAT MEETING. IT'S PRETTY MINIMAL, UH, IMPACT. UM, SO THERE HASN'T EVER BEEN AN ISSUE WITH US NOT BEING ABLE TO FULFILL, YOU KNOW, NORMAL PATROL OPERATIONS OR, OR FILL THOSE SHIPS. THOSE ARE ALSO VOLUNTARY ASSIGNMENTS. BOTH THE UT ILA AND THE TECH DOT ILA REQUIRE 100% REIMBURSEMENT. SO THERE'S NO FINANCIAL, UM, DOWNSIDE TO THIS ARRANGEMENT. IT'S MORE OF A LOGISTICAL AND SUPPORT IN NATURE. UM, THANK YOU FOR THAT INFORMATION. ABSOLUTELY. OKAY. ANYBODY HAVE ANY ADDITIONAL QUESTIONS OR THOUGHTS? ANYBODY HAVE ANY ADDITIONAL THANK YOU OFFICER, THANK YOU FOR BEING WITH US. ANY ADDITIONAL, UM, POLL ITEMS PEOPLE WANT TO RAISE AND ADDRESS? [92. Approve a resolution relating to Council policies and directives to the City Manager for City-owned real estate, including requirements for construction projects, living wage, minority and women-owned business requirements and other Council priorities related to City-owned real estate and City-owned parking facilities; and recommendations for future use of same. (Part 2 of 2)] COUNCIL MEMBER TOVO, THE LAST THING ON OUR AGENDA THEN WOULD BE FOR THE DISCUSSION OF 92. IF YOU WANTED TO TEE THAT UP. I WOULD LOVE, I WOULD LOVE TO HEAR SOME FEEDBACK, BUT I ALSO UNDERSTAND IT'S LATE IN THE DAY, HOWEVER, I DIDN'T PUT IT ON THIS WEEK FOR VOTE, UM, TO AFFORD THIS. SO I, I WILL, UM, ANSWER, I WOULD LOVE TO, TO HEAR SOME FEEDBACK ABOUT IT OR TO ANSWER QUESTIONS OR AS I SAID, TO PROVIDE SOME OF THE EXAMPLES THAT HAVE GIVEN RISE TO SOME OF THE POLICIES THAT I'M SUGGESTING. SO I CAN DO ANY OF THOSE THINGS OR JUST WAIT FOR QUESTIONS. I, FOR WHEN I'M HAPPY THAT YOU BROUGHT THIS BECAUSE OVER THE COURSE OF THE LAST SEVERAL YEARS AND PROBABLY BEFORE THAT EVEN, WE'VE HAD REPEATED CONVERSATIONS ABOUT POLICY DEALING WITH REAL ESTATE. THE TRUTH IS WHETHER ANYTHING ELSE GOING ON, I STILL HAVEN'T HAD A CHANCE YET TO READ THROUGH IT, SO I'M NOT GONNA BE ABLE TO COMMENT TO YOU NOW, TRY AND GET YOU COMMENTS. UH, BUT I APPRECIATE THE, UH, AND, AND, AND SUPPORT THE EFFORT TO, TO GIVE RISE TO THESE THANKS. AND JUST, YOU KNOW, I'LL PROVIDE JUST A LITTLE BIT MORE FLAME FOR FRAME WORK. UM, YOU KNOW, IN MY TIME ON COUNCIL, I'VE SEEN ISSUES LIKE THE GROVE WHERE, UM, WE HAD AN OPPORTUNITY, WE HAD THE, THE RIGHT OF FIRST REFUSAL UNDER STATE LAW, I THINK TO MAKE AN OFFER, UM, FOR THAT PROPERTY. IT SAT ON IT, IT NEVER MADE ITS WAY TO COUNCIL UNTIL THE VERY LAST MINUTE. NOT, NOT, THIS WAS BEFORE YOUR TIME, UM, CITY MANAGER. SO THIS WOULD SET IN PLACE A VERY CLEAR EXPECTATION THAT THOSE, THAT THOSE, UM, KIND OF OFFERS MAKE THEIR WAY TO COUNCIL IMMEDIATELY SO THAT COUNCIL HAS AN OPPORTUNITY TO ASSESS THEM. BECAUSE THE, THE FACT OF THE MATTER IS THAT BY THE TIME THAT CAME TO COUNCIL'S ATTENTION, IT WAS TOO LATE FOR US TO REALLY DO THE KIND OF WORK WE NEEDED TO DO TO FIGURE OUT WHAT FINANCIAL OPTIONS WE HAD. I THINK IT WAS LIKE $29 MILLION. UM, AND, AND THERE ARE ALL KINDS OF OTHER THINGS I COULD SAY ABOUT GOD BLESS YOU, WHY THAT WENT WRONG. BUT, UM, BUT, BUT IT STARTED WITH, IT STARTED WITH OUR NOT GETTING INFORMATION SOON ENOUGH. UM, I WOULD SAY WINNEBAGO LANE IS ANOTHER EXAMPLE WHERE THAT APPEARED ON OUR AGENDA. THERE HADN'T BEEN A PREVIOUS COUNCIL CONVERSATION ABOUT WHETHER OR NOT THAT PROPERTY SHOULD BE OFFERED FOR SALE. I HAPPEN TO NOTICE IT ON THE AGENDA. WE HAD A VIGOROUS CONVERSATION AND A COUPLE, UM, AT LEAST ONE OTHER RESOLUTION ABOUT IT THAT I HAD BROUGHT AND, AND THAT IS NOW STILL IN PUBLIC HANDS AS A RESULT OF OUR COUNCIL WORK. BUT, YOU KNOW, WE HAD TO KIND OF REROUTE TO GET IT THERE. UM, OUR, WE'VE HAD A VERY VIGOROUS CONVERSATION RECENTLY ABOUT RFPS AND WHETHER, WHETHER THE COUNCIL CAN, AND UNDER WHAT CIRCUMSTANCES CAN WE VIEW THEM. I THINK THAT SHOULD JUST BE PART OF THE EXPECTATION AND WE CAN LOOK AT THEM IN EXECUTIVE SESSION IF THAT'S THE APPROPRIATE PLACE FOR THEM. BUT THE VERY, UM, SOMETIMES CHALLENGING PATH THAT WE'VE TAKEN WITH HEALTH SOUTH, I THINK A LOT OF THAT COULD HAVE BEEN AVOIDED. HAD WE SEEN THE RFP BEFORE, IT WERE BEFORE IT WAS RELEASED, AS WAS THE EXPECTATION. UM, BECAUSE WHAT WE HAD TO DO WHEN IT CAME BACK TO US WITH A, WITH A RECOMMENDATION IS THEN, YOU KNOW, ACCEPT THE, AND SEND STAFF OFF WITH THIS LIST OF SUGGESTED AMENDMENTS THAT I BROUGHT, UM, WITH THE, AND I THINK COUNCIL MEMBER HU UH, COUNCIL MEMBER, UM, HOUSTON HAD HAD EMBEDDED [06:05:01] SOME OF THOSE IN THAT ORIGINAL RESOLUTION, BUT THEY DIDN'T GET INCORPORATED INTO THE RFP. AND SO WE HAD TO KIND OF REROUTE THINGS A BIT AT THAT POINT. AND I THINK, YOU KNOW, WE WANT NOT TO HAVE TO REROUTE THINGS IN THE FUTURE. SO THAT WAS GIVING RISE TO ANOTHER, YOU KNOW, ANOTHER ONE OF THESE POINTS. UM, YOU KNOW, AGAIN, I THINK, SO THERE HAVE BEEN LOTS OF OTHER EXAMPLES THAT I COULD OFFER. UM, SOME SEA HOME PARKING GARAGE, YOU KNOW, STAFF VISITED MY OFFICE AND MAYBE SOME OTHERS PROBABLY EIGHT OR SO YEARS AGO ABOUT POSSIBLY SELLING THE SEA HOME PARKING GARAGE. THAT WAS SOMETHING WHERE FORTUNATELY THEY ASKED US FOR FEEDBACK BEFORE THEY WENT FORWARD WITH THAT, AND I THINK GOT THE FEEDBACK FROM SEVERAL OF US, LIKE, WHY WOULD WE SELL THE SEA HOME PARKING GARAGE? PARKING GARAGES ARE GONNA CONTINUE TO BE A GOOD INVESTMENT HERE IN THE DOWNTOWN. SO ANYWAY, SO THESE PROVISIONS ARE INTENDED, I'M GONNA DO SOME, SOME WORK ON THEM TO CLARIFY A FEW OF THE POINTS. BUT THEY ARE, THEY ARE REALLY ABOUT MAKING SURE THAT COUNCIL IS INVOLVED, THAT WE ARE NOTIFIED, UM, AS SOON AS THERE'S AN OFFER ON SOME OF THOSE PROPERTIES, IF THE STAFF ARE CONSIDERING SELLING SOME OR LEASING THAT THERE WILL BE NOTIFICATION TO COUNCIL, MAKING SURE THAT COUNCIL HAS AN OPPORTUNITY TO REVIEW RFPS. THERE MAY BE PROJECTS WHERE WE DON'T, WHERE WE, UM, OR Y'ALL OR FUTURE COUNCILS DON'T NEED THAT KIND OF EARLY NOTIFICATION AND, AND MAYBE THERE'S SOME WAY TO TEMPER THAT. ONE OF THE THINGS THAT WE'VE TALKED A LOT ABOUT THROUGH THE YEARS IS REALLY MAKING SURE THAT WE HAVE A CLEAR AND TRANSPARENT SOCIAL SERVICE, PUBLIC HEALTH CONTRACT PROCESS FOR THOSE CONTRACTS. AND I'D LIKE TO SEE US AT THE CITY HAVE A SIMILAR ONE FOR OUR REAL ESTATE TRANSACTIONS AND OUR LEASES ON SOME OF OUR CITY OWNED PROPERTIES. AND SO THERE WILL BE A PROVISION IF THERE'S NOT ALREADY, I'M HAVING TROUBLE FINDING IT AT THE MOMENT ON SETTING UP AND ASKING STAFF TO COME BACK TO COUNCIL ON APPROVAL FOR A PROCESS TO REALLY MAKE SURE THAT WE'RE MAKING THOSE DECISIONS EQUITABLY. UM, AND ALSO REQUIRING FROM THOSE GROUPS THE KIND OF ACCOUNTABILITY THAT WE DO FROM OUR SOCIAL SERVICE CONTRACTS. UM, AND I THINK I'LL LEAVE IT THERE FOR NOW. THERE'S A LOT OF OTHER THINGS IN HERE, BUT, UM, THOSE ARE, THOSE ARE A COUPLE OF THE MAIN ONES. AND ALSO, AGAIN, CARVING OUT, CARVING OUT A REALLY CLEAR ROLE WITH OUR AEDC, OUR ECONOMIC DEVELOPMENT CORPORATION. OKAY. THANK YOU. ANY COMMENTS ON THIS OR ANYTHING ELSE? ANYONE WANTS TO TALK ABOUT IT? WORK SESSION. AWESOME. UM, THANK YOU KATHY FOR BRINGING THAT FORWARD. I'M A CO-SPONSOR. I'VE GOT A FEW MORE IDEAS TO INCORPORATE AND SOME THOUGHTS AND I'LL DO THAT OFFLINE SO WE DON'T HAVE TO TAKE THE TIME NOW, BUT I JUST WANTED TO SAY THAT I FAVOR IT. THANKS. ANYTHING ELSE THEN WITH THAT, THIS, UH, MEETING WORK SESSION IS ADJOURNED. TIME IS FOUR 18. UH, EVERYBODY PAY ATTENTION TO THE MESSAGE BOARD. THERE'S GONNA BE SOME POSTINGS AND UH, WE'LL SEE EACH OTHER THURSDAY MORNING. SEE YOU THEN. THEY. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.