Oct 11, 2022 City Council Work Session

I THINK SHUFFLING PAPERS ON THE DESK, I THINK MAY HAVE BEEN WHAT WE WERE HEARING, BUT IN ANY EVENT, UM, UH, THE TIME IS, UH, NINE 17, UH, UH, AS, UH, WE POSTED IN DISCUSSED IN ORDER TO, UM, MAKE SURE THAT, UH, OUR, UH, AUSTIN ENERGY OVERSIGHT COMMITTEE CHAIR COULD BE WITH US.

WE'RE GONNA BEGIN WITH, UH, ITEM NUMBER 49, WHICH IS THE AUSTIN ENERGY, UH, UH, PSA.

UH, WHEN WE'RE DONE WITH THAT, UM, WE'RE GONNA TOUCH BRIEFLY ON THE SCHEDULE FOR, UM, OCTOBER, NOVEMBER, DECEMBER.

UH, I PUT UP A MESSAGE BOARD POST THAT IDENTIFIES, UH, SOME OF THE ISSUES IN FRONT OF US, UH, WITH RESPECT TO, UH, THE DATES, UH, THAT WILL GET US THEN TO PULLED ITEMS. UM, WE HAVE, UM, UH, THE CUSTODIAL SERVICES, THE CONCRETE POOR 16 AND 39 40.

WE HAVE THE STATESMAN PUT, AND WE HAVE 68, 69.

AND, UH, ITEM 74, WHICH ARE THE, THE, THE BALANCING REQUIREMENT, UH, UH, ISSUE.

WE'LL TRY TO WORK OUR WAY THROUGH THOSE PULLED, UH, ITEMS. UM, WE'LL DO THE POLL ITEMS THAT, THAT, THAT MOST PEOPLE HAVE INDICATED INTEREST IN SO THAT WE CAN MAKE SURE THAT WE GET TO THOSE AT NOON.

UH, WE'LL BREAK FOR LUNCH.

I NEED TO BE GONE FROM 12 TO 1230 MYSELF.

SO I'M GONNA TRY TO HIT THAT FOR, FOR LUNCH, 1230.

UH, TRY TO GET INTO EXECUTIVE SESSION.

WE HAVE SOMETHING ON CYBER SECURITY, ON A LAWSUIT SETTLEMENT.

UH, AND THEN, UH, WHEN WE COME OUT AT ONE 30, WE HAVE THE, UH, OVERSIGHT MEETING.

UH, COUNCIL VER TOVO, ARE YOU CHAIRING THAT, UH, HERE TODAY IN THE ABSENCE OF COUNCIL MEMBER POOL, I THINK? YES.

UH, AND, UH, THEN WE'LL PICK BACK UP.

UH, I HAVE A HARD STOP TODAY AS I THINK THE MAYOR PROTA DOES AS WELL AT THREE O'CLOCK.

SO THAT'S HOW WE'RE GONNA BE TRYING TO WORK TODAY.

SO WE'RE GONNA TRY AND WORK THROUGH ISSUES AS MUCH AS WE CAN, UM, SEEING WHAT THINGS PERHAPS WE CAN GET QUESTIONS ON OR IDENTIFY ISSUES OR GET QUESTIONS ON Q AND A.

BUT LET'S GO AHEAD AND START.

ITEM NUMBER.

I JUST WANNA LET PEOPLE KNOW I'LL BE, UH, I HAVE TO STEP OUT FROM 11 UNTIL ABOUT 1215 OR SO.

THAT'S THE AMERICAN PUBLIC TRANSPORTATION ASSOCIATION MEETING.

[49. Conduct 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 Regulatory Charges for Austin Energy, and make corresponding amendments to the Austin Energy Fiscal Year 2022-23 operating budget in Ordinance No. 20220817-004.]

ALL RIGHT.

SO LET'S GO AHEAD AND CALL UP FIRST, UH, ITEM NUMBER 49, UH, THE AUSTIN ENERGY PSA, UH, COUNCIL BAR POLL.

YOU PULLED THIS ONE.

I DON'T KNOW IF YOU WANT TO SPEAK ON IT.

SURE DO.

THANKS, MAYOR.

AND, UM, JUST TO LET FOLKS KNOW, I'M, I'M UP HERE IN SEATTLE AT THE APTA CONFERENCE ON BEHALF OF KEPT METRO.

IT'S THE ANNUAL MEETING.

UM, SO SPECIFICALLY TO THE AUSTIN ENERGY ITEM, WE HAVE TWO CONSEQUENTIAL TARIFF ISSUES THAT HAVE HIT US THIS YEAR, AND, AND BOTH MEAN INCREASED COST RATE PAYERS.

SO WE ON COUNCIL AND STAFF AT AUSTIN ENERGY ARE WORKING TOGETHER TO MITIGATE THE IMPACTS.

THE TWO ISSUES ARE SEPARATE WITH SPECIFIC CAUSES, BUT BECAUSE THEY'RE COMING IN SEQUENCE NOW FOR MOST OF THE PUBLIC, THE ISSUES ARE INTERTWINED.

AND IN REALITY, THE WORK WE'RE UNDERTAKING ON BOTH FRONTS IS ALSO INTERTWINED.

WE HAVE CHARGED THE UTILITY WITH BRINGING US OPTIONS THAT WILL EASE THE BURDEN ON RATE PAYERS BIG AND SMALL.

SINCE LEARNING ABOUT THE $104 MILLION UNDER COLLECTION TWO WEEKS AGO, MY STAFF AND I HAVE BEEN IN URGENT TALKS WITH AUSTIN ENERGY, SEARCHING FOR VIABLE OPTIONS TO MANAGE THE RECOVERY THAT IS REQUIRED ON THE POWER SUPPLY ADJUSTMENT.

ONE OF THOSE OPTIONS WILL INCLUDE A GRADUAL RECOVER RECOVERY, UH, THAT WOULD SPREAD OUT THE INCREASES TO EASE A BIG BILL SPIKE FOR ALL

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USERS OVER THREE YEARS.

AS I MENTIONED, WE'RE WORKING TO EASE THE BURDEN FOR RESIDENTIAL RATE PAYERS, BUT SMALL BUSINESSES UP UNTIL THE LARGEST EMPLOYERS ARE ALSO EXPERIENCING BIG JUMPS IN THEIR GOALS.

WE ARE IN DISCUSSIONS WITH REPRESENTATIVES FROM THE CCARE CONSORTIUM OF COMMERCIAL CUSTOMERS, AND I HOPE TO HEAR FROM THEM ON THURSDAY ABOUT THEIR NEEDS.

OUR AUSTIN ENERGY STAFF ARE HERE TODAY TO LAY OUT REASONS FOR THE RATHER UNPRECEDENTED ADJUSTMENT WE'RE SEEING THIS YEAR.

AND AS I'M SURE THEY WILL NOTE, AUSTIN ISN'T UNIQUE RATE PAYERS ACROSS THE STATE ARE SEEING THESE COST INCREASES FROM THE NATURAL NATURAL GAS PRICE JUMP, AS WELL AS ICO'S CONGESTED SYSTEM, WHICH PREVENTS CHEAPER RENEWABLES FROM ENTERING THE GRID EASILY.

AND AUSTIN ENERGY STAFF HAVE SPOKEN TO THESE ISSUES IN OUR PREVIOUS WORK SESSION.

SO, FOR NEXT STEPS, THE COUNCIL HAS THE POWER SUPPLY ADJUSTMENT BEFORE US THIS WEEK.

I'M HOPING WE WILL BE PREPARED TO VOTE ON THURSDAY.

AS A REMINDER, THE PSA IS WHAT US AND ENERGY PAYS TO BUY AND SUPPLY ENERGY REGULATORY COSTS FROM RCCO AND THE TRANSMISSION COSTS FROM THE PUC.

I'D ALSO LIKE US TO BE NIMBLE IN OUR APPROACH TO THE POSSIBILITY OF THIS HAPPENING AGAIN NEXT SUMMER.

CERTAINLY, NATURAL GAS PRICE SPIKES COULD OCCUR IN THE FUTURE.

THE WAR IN UKRAINE, FOR EXAMPLE, IS NOT OVER, AND THE CITY OF AUSTIN IS AFFECTED BY GLOBAL EVENTS.

WE CAN GET AN EARLY NOTICE ON ANY BIG SPIKES WITH A QUARTERLY ADJUSTMENT AS OPPOSED TO THE ANNUAL ADJUSTMENT THAT WE HAVE CURRENTLY.

AND THAT'S A DIRECTION I THINK WE SHOULD GO.

UM, I'D LIKE TO NOTE THAT AUSTIN ENERGY WILL BE UPDATING THE ELECTRIC UTILITY COMMISSION ON OCTOBER 17.

I LOOK FORWARD TO REVIEWING COMMISSIONER'S RECOMMENDATIONS.

I'VE TALKED WITH A COUPLE OF THE EUC COMMISSIONERS.

I HOPE EACH OF YOU WILL, UM, CONSULT WITH YOUR INDIVIDUAL APPOINTEES TO THE EUC AND THEN LATER THIS AFTERNOON IN THE AUSTIN ENERGY OVERSIGHT COMMITTEE MEETING THAT I APPRECIATE MY VICE CHAIR COUNCIL MEMBER TOVO LEADING.

UM, WE CAN DISCUSS THE PROPOSED DATES THAT I'VE POSTED ON THE COUNCIL MESSAGE BOARD FOR ADDITIONAL WORK SESSIONS AND PUBLIC HEARINGS ON THE BASE RATE ISSUE.

I WOULD SUGGEST THAT WOULD, THAT WE DELAY A VOTE ON THE BASE RATE UNTIL ONE OF OUR DECEMBER MEETINGS.

IT'S CURRENTLY PROPOSED FOR NOVEMBER 17, AND A NUMBER OF US WILL NOT BE, UH, ON THE DIAS THAT DAY.

AGAIN, THAT'S A, A SCHEDULING ISSUE THAT WE'LL BE TALKING ABOUT THIS MORNING AS WELL.

UM, SO I'D LIKE TO SUGGEST THAT WE PUSH THAT VOTE TO ONE OF THE TWO DECEMBER MEETINGS SO WE CAN CONTINUE TO HEAR FROM STAKEHOLDERS AND WORK ON OPTIONS TO RE UH, TO EASE THE RIGHT PAYER BURDEN WHILE PROMOTING COMMUNITY VALUES OF CONSERVATION AND RENEWABLES.

AND ALL OF THIS IS IN A CONCERTED EFFORT FOR ALL OF US, UM, IN OUR RESPONSIBILITIES TO BE AS PUBLIC, PUBLICLY TRANSPARENT AND ACCOUNTABLE, UM, TO THE RIGHT PAYERS OF AUSTIN.

THANKS, MAYOR.

THANKS, MAYOR PAUL.

SUDDEN INCREASE IN THE, IN THE PSA.

UM, COLLEAGUES, UH, I'VE HANDED OUT A, UH, DRAFT ADDITIONAL DIRECTION, WHICH IS BEING POSTED ON BACK UP ANOTHER MESSAGE BOARD JUST TO THE PUBLIC AND SEE IT TOO, GIVEN A COPY TO BROSKI AND, AND HAVE ORALLY GONE OVER THESE, THESE ISSUES WITH HIM.

SO, IN YOUR PRESENTATION TODAY, I'D REALLY LIKE YOU TO ADDRESS THE, THE FIRST THREE, AND THEN MANAGER, I'D LIKE YOU TO ADDRESS THE ONE AT THE, THE BOTTOM AT A REALLY HIGH LEVEL.

UM, IT LOOKS LIKE WE DON'T HAVE ANY CHOICE BUT TO PAY THIS FEE.

IT'S NOT AN OPTIONAL THING, RIGHT? WE HAVE TO PAY FOR THE COST OF ENERGY, UH, AND WE HAVE, YOU KNOW, A SYSTEM AND A PROCEDURE AND A PROTOCOL FOR, FOR DOING THAT.

UM, AS HE SEEMS AS IF THE, THE REAL MATERIAL QUESTION IN FRONT OF US IS, DO WE DO IT ALL AT ONCE OR DO WE DO IT OVER A THREE YEAR PERIOD OF TIME? AND IF OVER A THREE YEAR PERIOD OF TIME, THEN, THEN, THEN, THEN, THEN HOW, UM, DO WE, DO WE DO THAT? UM, AND, AND I THINK PART OF THE PRESENTATION, YOU PASS THAT AROUND CUZ OF I WAS SHY, ONE COPY DOWN AT THE END.

UM, BUT IN ADDITION TO SETTING THAT, I THINK IT'S REALLY IMPORTANT THAT WE EITHER TAKE ACTION ON THURSDAY OR START ACTION ON THURSDAY.

THAT DEALS WITH A BROADER QUESTION OF, OF HOW DO WE AVOID BEING IN THIS SITUATION WHERE THERE'S A SHOCK TO, UM, UM, RATE PAYERS AS THE KIND THAT THAT FALL FROM, UM, UH, A

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SO I IDENTIFIED THREE DIFFERENT ISSUES HERE.

THE FIRST ONE IS, YOU KNOW, HOW ASKING THE QUESTION HOW, OR WHEN WE SET THE, THE PSA, UH, RATES, WHAT CAN WE DO TO HELP SMOOTH THAT, UH, OUT MM-HMM ? UM, MAYBE IT'S MORE OFTEN, MAYBE IT'S LESS OFTEN.

MAYBE IT'S TYING IT TO INCREASE IN PSA.

MAYBE IT'S TYING IT TO WHAT OUR RESERVE LEVEL IS, UH, WHICH WOULD BE OUR ABILITY TO BE ABLE TO, TO ROLL WITH A SUDDEN MONTHLY JUMP.

BUT ONE WAY OR ANOTHER, WE NEED TO FIGURE OUT WHAT THE PROCESS IS NOT TO BE IN A SITUATION WE'RE IN NOW.

UH, THE SECOND ONE SPEAKS TO, UH, UH, DOING A TIERING OR SOME OTHER DEVICE ASSOCIATED WITH THE PSA THAT WOULD ENABLE US TO USE THE, THE PSA, UH, IN A WAY THAT PROMOTES INCENTIVIZE AS CONSERVATION.

UH, FROM THE CONVERSATION I'VE HEARD, IT APPEARS AS IF, IF WE'RE GOING TO DO, UM, UH, CONSERVATION, UM, UM, TRIGGERS OR, OR SIGNALS TO OUR RATE PAYERS, I THINK I HEARD YOU SAY AT ONE POINT THAT IT'S BETTER TO DO IT IN THE PSA THEN IN THE BASE RATE.

IF THAT'S TRUE, THEN THAT BEGS THE QUESTION, WELL THEN HOW DO WE DO THAT TO ACTUALLY GET THAT DONE? AND WHEN CAN WE DO THAT? HOW QUICKLY COULD WE DO THAT? UH, ESPECIALLY IF AS WE DO THE BASE RATE IN DECEMBER, THERE'S UM, UM, A CONSTITUENCY INDICATING THAT WE'RE LOSING SOME OF THE UM, UM, UH, INCENTIVES.

THE THIRD ONE IS, SHOULD WE BE LOOKING AT DIFFERENT RESERVE POLICIES? SHOULD WE HAVING IN, IF WE, IF WE'RE IN A NEW WORLD THAT'S MORE VOLATILE, DO WE NEED TO SET HIGHER RESERVES? UM, AND TAKING A LOOK AT, UH, WHAT WE'VE DONE HERE IN THE LAST YEAR AND A HALF, TRYING TO LEARN FROM IT.

WE HAD AN OVERPAYMENT BY OUR RATE PAYERS OVER THE LAST YEAR.

WE'VE RETURNED THAT MONEY, NOW WE'RE DEALING WITH AN UNDERPAYMENT.

SO THE SPREAD THAT THE CHANGE, THE DELTA THAT THAT RATE PAYERS ARE FEELING IS, IS MAGNIFIED AND EXACERBATED BY THE FACT THAT WE'RE NOT EVEN GOING FROM A NORMAL RATE TO A HIGHER RATE.

WE'RE GOING TO A SUBSIDIZED RATE, A LOWER RATE CUZ WE WERE PAYING PEOPLE BACK TO THIS RATE, WHICH MAKES THE JUMP SEEM EVEN BIGGER.

AND MAYBE WE SHOULD BE LOOKING AT DIFFERENT TIMING FOR WHEN WE PAY BACK RATE PAYERS AS OPPOSED TO WHEN WE ARE CHARGING RATE PAYERS.

UH, SO AS TO, UH, MINIMIZE THE, THE SHOCK OF AN INCREASED, UH, PAYMENT, UH, WHILE STILL PROTECTING RATE PAYERS.

AND THEN MANAGER IN THE LAST ITEM THAT I'D LIKE YOU TO ADDRESS IS, UM, IF WE DID A BASE RATE, UH, INCREASE, UH, IN DECEMBER, THAT'S GOING TO BE ON TOP OF THE PSA INCREASE IF WE DO THAT ON THURSDAY.

SO I'D LIKE US TO BE THINKING ABOUT HOW WE COULD MINIMIZE THAT COMBINED AMOUNT WHILE WE'RE RAISING ONE AND HALF OF IT ON THURSDAY, IF WE'RE GOING TO DO THAT.

AND THE QUESTION THAT I THINK SEVERAL PEOPLE IN THE COMMUNITY ARE ASKING IS, UM, WITH A HIGHER BASE RATE, THERE'S A HIGHER, UH, GENERAL FUND TRANSFER THAT FOLLOWS FROM THAT INCREMENTAL INCREASE.

AND MAYBE OVER THE SAME THREE YEAR PERIOD OF TIME THAT WE'RE DOING THE SMOOTHING OUT, MAYBE WE DON'T TAKE THAT INCREMENTAL AMOUNT IF THAT'S NOT SOMETHING THAT YOU HAVE ALREADY STARTED BUILDING INTO THE, THE, THE BUDGET OR INTO THE FORECASTS.

UH, SO AS TO, UM, UM, MINIMIZE AS MUCH AS WE CAN OR TO MITIGATE THE, THE RATE CHANGE, UH, THE COMBINED RATE CHANGE THAT WOULD HAPPEN IN DECEMBER.

SO I'D LIKE FOR YOU TO, TO ADDRESS THAT, UH, ISSUE TOO.

ANYBODY ELSE HAVE ANYTHING BEFORE WE GO TO MR. OBRAS? HE ASKED CANCER POWER TOVO.

UM, YES, I HAVE A LOT OF QUESTIONS FOR YOU ABOUT YOUR, UH, AMENDMENT.

I ASSUME NOW'S THE TIME.

UM, BUT WHY DON'T WE START WITH THE LAST POINT THAT YOU RAISED.

I DIDN'T UNDERSTAND THE CONNECTION YOU WERE MAKING IN THE, UH, YOU'RE TALKING ABOUT.

I THINK ACTUALLY I'LL, I'M GONNA, I THINK THAT YOU AND I ARE IN A SUB SUBC I'M GONNA ASK YOU ABOUT THIS OUTSIDE THE OKAY.

MEETING.

SO I, I LIKE, I LIKE THE ISSUES YOU'VE RAISED.

THESE SEEM TO FOLLOW FROM THE CONVERSATION THAT WE HAD LAST TIME WITH MR. JIM BROSKI.

AND YOU KNOW, FOR ME, I'M READY TO ENACT A POLICY THAT SAYS WE'RE GONNA LOOK AT IT MORE FREQUENTLY RATHER THAN HAVE IT IN A MULTI-STAGE PROCESS OF ASKING THE MANAGER TO THINK ABOUT IT TO COME BACK.

I FEEL LIKE IN OUR, I FEEL LIKE THIS EXAMPLE HAS SHOWN US THAT, THAT WE NEED THE ABILITY TO LOOK AT IT MORE FREQUENTLY.

AND SO I'M GONNA ASK YOU TO THINK ABOUT MAKING, AND I'M OPEN TO THERE, BUT, SO FOR EXAMPLE, THAT A, INSTEAD OF SAYING OPTIONS FOR HOW I, I THINK ONE WOULD BE TO SAY,

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YOU KNOW, TO TO SAY EVERY SIX MONTHS OR EVERY THREE MONTHS OR HAVE A QUARTERLY CHECK IN OR SOMETHING OF THAT SORT.

BUT I I, I WOULD NOT WANNA WAIT, I WOULD NOT WANNA WAIT, UM, ANOTHER BUDGET YEAR TO MAKE THAT ADJUSTMENT ON HOW OFTEN IT COMES UP.

I NEED TO UNDERSTAND FROM MR. D BROSKI.

I STILL DON'T UNDERSTAND WHY THIS DIDN'T TRIGGER A CHECK IN WITH COUNSEL BECAUSE OF THE 10%.

I DID NOT UNDERSTAND YOUR EXPLANATION TO THAT LAST TIME.

SO AT THE APPROPRIATE TIME, MAYBE YOU CAN HIT THAT AGAIN.

UM, I DO WANNA ASK MR. JIM BROSKI, I THINK THIS IS, THIS IS SOMETHING I'VE BEEN WONDERING ABOUT, WHETHER THE PSA COULD BE VARIABLE RATE BASED ON YOUR TYPICAL ENERGY CONSUMPTION AND I WASN'T SURE IF THAT IS AN OPTION.

SO COULD YOU ANSWER THAT QUESTION? IS, IS IT POSSIBLE THIS, UH, ONE B, IS IT POSSIBLE TO HAVE A VARIABLE RATE POWER SUPPLY CHARGE BASED ON TYPICAL LEVELS OF CONSUMPTION? SO THE, THE GENERAL CONVENTION IS, IS CALLED A TIME OF USE RATE.

SO POWER COSTS ARE DIFFERENT DURING THE DAY, UM, IN THE AFTERNOON HOURS WHEN WIND DIES DOWN AND OUR LOAD INCREASES.

PRICES CAN NO DOUBLE OR TRIPLE ON AVERAGE FOR A FEW HOURS AND THEN DROP BACK OFF AGAIN IN THE EVENING WHEN THE WIND COMES ONLINE.

AND, UM, DEMAND DECREASES.

SO WHEN YOU USE POWER, IT'S PROBABLY MORE IMPORTANT THAN HOW MUCH YOU USE DEPENDING ON WHEN YOU USE DURING THE DAY.

SO THAT'S WHAT WE'D BE LOOKING AT.

IS IT MORE OF A TIME OF USE RATE? I SEE.

I DIDN'T UNDERSTAND THAT THEN.

I THINK WE SHOULD BE REALLY TRANSPARENT ABOUT, ABOUT THAT THEN MAYOR, JUST BECAUSE IT, IT, I THINK THAT LANGUAGE IS SOMETHING PEOPLE UNDERSTAND.

UM, AND, AND SOME HAVE CONCERNS ABOUT FRANKLY BECAUSE NOT EVERY USER CAN REALLY CAN VARY WHEN THEY'RE DOING THINGS.

IF YOU WORK ALL DAY LONG, YOU'RE, YOU KNOW, VERY LIKELY.

I MEAN IF DEPENDING ON YOUR WORK HOURS AND NOT ALL OF US HAVE FLEXIBLE HOURS, UM, OR AS FLEXIBLE AS AS SOME OF OURS ARE.

UM, BUT IT, YOU KNOW, YOU NEED TO, YOU NEED TO RUN THAT DISHWASHER AND THE CLOTHES WASHER WHEN YOU, WHEN YOU HAVE AN OPPORTUNITY WHEN YOU'RE OFF WORK.

SO TIME ABUSE, I, I AM CONCERNED ABOUT WHAT I'M READING, UM, WITH REGARD TO ITS IMPACT, ESPECIALLY ON, ON, YOU KNOW, LOWER INCOME WORKING FAMILIES.

SO I GOTTA, I GOTTA GET THAT ONE SOME THOUGHT.

I DIDN'T NECESSARILY SEE THAT THAT WAS WHAT, UM, THE MAYOR WAS SUGGESTING DOING IN B UM, AND AS I MENTIONED, I DO HAVE SOME CONCERNS ABOUT TWO THAT I'M GONNA ADDRESS OUTSIDE OF THIS MEETING.

AND THE RESERVE POLICIES I THINK ALSO BEARS MORE CONVERSATION.

IT, IT SOUNDS LIKE IT WOULD GET THAT MORE CONVERSATION BETWEEN HERE AND THE BUDGET.

SO THAT'S, UM, A CONVERSATION THE NEXT COUNCIL CAN REALLY HAVE.

I WILL JUST SAY THAT THERE WAS PRETTY SUBSTANTIAL CONCERNS ABOUT THAT WHEN IT WAS BEING BUILT INTO THE RATE CASE IN 2013.

UM, JUST BECAUSE IT IS, IT IS CAPTURING DOLLARS FROM FOLKS, UM, YOU KNOW, FOLKS HERE NOW TO BENEFIT RATE PAYERS IN THE FUTURE.

AND, AND THERE WERE LOTS OF CONCERNS ABOUT THAT.

SO, BUT AGAIN, I THINK THAT'S AN ISSUE FOR, FOR THE NEXT GROUP TO SORT THROUGH.

AND I AM WIDE OPEN TO CHANGES TO ALL OF THESE.

IT WAS MORE TRYING TO IDENTIFY ISSUES.

UH, IF THERE'S STUFF WE COULD ADOPT NOW, I'D BE ON IN FAVOR OF THAT.

YEAH, GREAT.

TRYING NOT TO BE PRESCRIPTIVE, SO, SO I TRY TO INCORPORATE BOTH THE HOW AND WHEN ON NUMBER ONE.

UH, YOU'RE SUGGESTING WE CAN ALREADY DECIDE THE ONE QUESTION.

I THINK THAT'S GREAT.

I'M NOT SURE WE CAN DECIDE THE HOW QUESTION CAUSE THERE MAY BE ALTERNATIVES OR MAYBE WE CAN, YEAH, SO I'M WIDE OPEN TO CHANGING, I THINK GETTING SOME SPECIFICITY AROUND A, UM, WITH THE ACKNOWLEDGEMENT THAT, YOU KNOW, THE COUNCIL OVER THE NEXT YEARS IS GONNA HAVE TO BE ITERATIVE BECAUSE OF THE CHANGING SITUATION.

BUT I DO WANNA AT SOME POINT, AND I DON'T WANNA TAKE TOO MUCH TIME RIGHT NOW, BUT I DO WANNA, I THINK THE HOW IN SOME WAYS GETS TO THAT QUESTION ABOUT THE 10%.

CUZ WE ALREADY HAVE SORT OF A MECHANISM IN THERE, BUT I JUST NEED TO BETTER UNDERSTAND IT.

SO I SEE MAYOR PROTE HAS A QUESTION, SO I DON'T KNOW IF YOU WANNA GO TO HER OR YOU WANT MR. I'M GONNA STAY HERE WITH THE COUNCIL FIRST.

PSA STRUCTURE PIECE, UM, TO ACHIEVE OUR GOALS AND HOW WE THINK ABOUT THAT, WHICH I THINK IS GONNA TAKE SOME MORE TIME.

MAYOR PROTE, THANK YOU.

UM, AND MAY I APPRECIATE YOU GETTING SOME OF THESE IDEAS, YOU KNOW, DOWN ON PAPER FOR US TO, TO, TO WORK WITH AND, AND, UM, I MAY HAVE SOME QUESTIONS SINCE WE'RE IN THE SAME QUO THAT I ASKED YOU OFF THE DIAS AS WELL.

BUT, UM, I WANTED TO TO SUGGEST THAT I THINK THIS IS, UM, A MULTIPRONGED APPROACH.

SO I THINK WE NEED A APPROACH WHERE WE ARE VERY CLOSELY MONITORING WHAT THESE CHARGES ARE, WHAT THE PRICE OF, UM, ELECTRICITY IS IN THE MARKET OVER THE COURSE OF THIS YEAR.

UM, AND WE NEED TO BE ADJUSTING THE PSA, UM, MORE OFTEN IF THERE ARE FLUCTUATIONS.

AND THAT FLUCTUATION'S PROBABLY GONNA HAVE TO BE, IF THAT FLUCTUATION IS UP AND IT'S SMALLER THAN THE 10%, WE'RE GONNA HAVE TO FIGURE OUT THAT, UM, IN THE SHORT RUN.

AND THEN THERE'S A QUESTION OF HOW DO WE REDO THE WHOLE, YOU KNOW,

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UM, I'M TWO AND INTRIGUED BY THE TIME OF USE OPTION.

UM, BUT I DON'T UNDERSTAND SOME OF THE RAMIFICATIONS AT THIS STAGE, UM, THAT COUNCIL MEMBER TOVO IS MENTIONING ABOUT HOW IT IMPACTS, UM, PARTICULAR SEGMENTS OF OUR POPULATION.

AND SO BEFORE WE WOULD ADOPT THAT, WE WOULD NEED THAT.

AND THEN THAT'S ALSO GONNA TAKE A WHOLE LOT OF TECHNICAL CHANGES TO OUR BILLING SYSTEM THAT WE'RE GONNA HAVE TO PLAN FOR AND, AND IMPLEMENT.

UM, SO I THINK THAT THERE'S, THERE'S TWO PARTS OF THIS CONVERSATION.

UM, AND WE NEED TO IMMEDIATELY BE SHIFTING, UM, TO A MORE FREQUENT LOOK AT THE PSA.

UM, AND UNFORTUNATELY I THINK THAT THE LIKELIHOOD IS THAT THE PRICE IS GOING TO GO UP AND SO WE ARE GOING TO NEED TO, TO BE, UM, ADJUSTING THAT QUICKLY.

AND THEN ON THE, THE RESERVES, UM, I JUST WANNA POINT OUT WE HAVE NOT BEEN FOLLOWING OUR CASH RESERVE POLICY FOR A LONG TIME.

IT'S BEEN, YOU KNOW, WE'VE BEEN TOLD FOR A LONG TIME THAT IT WAS BEING MORE OR LESS COVERED BY TWO DIFFERENT OTHER POTS THAT MEANT THAT WE HAD CASH ON HAND.

UM, AND SO PART OF IT IS WE NEED TO ACTUALLY FOLLOW THAT POLICY, IF NOT ADJUST IT.

AND MAYBE YOU CAN TALK ABOUT THAT A LITTLE BIT, UM, IN YOUR REMARKS IN TERMS OF THE CASH RESERVE POLICY AND WHERE THAT THAT FITS IN KAISER, OUR KITCHEN.

HEY KAISER.

UM, YES, I JUST WANTED TO SAY I, I APPRECIATE, UM, UH, THE WAY THAT COUNCIL MEMBER, UH, POOL LAID OUT, UM, THE CONVERSATION.

AND I ALSO APPRECIATE THE EMOTION THAT YOU'VE LAID OUT.

I THINK THAT I, I THINK IT'S INHERENT IN WHAT YOU'RE ASKING FOR HERE, BUT THE OTHER THING THAT MAKES THIS PARTICULARLY HARD IS THE DOUBLE THE DOUBLE, UM, YOU KNOW, THE DOUBLE IMPACT THIS YEAR ON, UH, RATE PAYERS.

SO AS PART OF THIS CONSIDERATION, I THINK THAT IT WOULD BE IMPORTANT TO, TO BEAR IN MIND THE OTHER THINGS THAT WE'RE LOOKING AT SO WE DON'T END UP IN A SITUATION AGAIN WHERE WE'RE LOOKING AT, UH, INCREASES, UH, FROM TWO, FROM TWO PERSPECTIVES SO WE CAN MANAGE THAT BETTER.

SO THANK YOU.

I AGREE WITH THAT TOO, A TALKS ABOUT HOW AND WHEN WE RESET AND I THINK THAT'S WITHIN THAT CONVERSATION.

CAN I POINT THIS? THANK YOU.

AND ALONG THAT THOSE LINES, I THINK, UM, WE'RE ALL CONCERNED ABOUT THE DOUBLE IMPACT FOR OUR CONSTITUENCY, UM, THAT WILL HAPPEN OVER THE NEXT FEW MONTHS.

AND OF COURSE I THINK THERE IS CONSENSUS THAT WE ALL WANNA REDUCE THE RATE PAYER SHOCK AS MUCH AS POSSIBLE.

UM, SO I GUESS MAY I HAD A FEW QUESTIONS ON PROCESS.

UM, CAUSE I APPRECIATE THE CONVERSATION WE'RE HAVING ABOUT WHAT WE CAN DO MOVING FORWARD TO AVOID THE SITUATION FROM HAPPENING LIKE THIS AGAIN.

UM, BUT WHAT WE HAVE FOR, FOR COUNCIL CONSIDERATION ON THURSDAY WILL BE BE APPROVING A PSA RATE AT THAT POINT, OR WILL THIS, WILL YOUR DIRECTION SET AN MOTION? UM, AUSTIN ENERGY COMING BACK TO US WITH OPTIONS ON THAT PSA RATE? RIGHT NOW WE ARE SET TO DECIDE THE PSA RATE.

UM, APPARENTLY WE'RE LOSING THREE QUARTERS OF A MILLION DOLLARS A DAY.

UH, SO, UM, UH, I THINK THERE'S SOME REASON FOR US TO ACT, BUT IT DIDN'T FEEL RIGHT TO ME TO ACT MM-HMM WITHOUT SPENDING, UH, EQUAL AMOUNT OF TIME, UH, ADDRESSING HOW WE PREVENT THIS FROM EVER HAPPENING AGAIN IN A WAY THAT, THAT, THAT IS A SHOCK TO OUR REPAIRS.

RIGHT, RIGHT.

THAT MAKES SENSE.

AND SO FOR THE RATE THAT WE SET ON THURSDAY, AUSTIN ENERGY WILL HAVE OPTIONS FOR US TO CONSIDER AT THAT POINT.

AND THEY HAVE, THEY PRESENTED TO US LAST WEEK AND PROBABLY CAN GO TWO WEEKS AGO, WHATEVER LAST TIME IT WAS WE MET AND HE CAN SPEAK TO THOSE TODAY.

TO DO ANYTHING ABOUT THAT PROBLEM THAT WE'RE HAVING, YOU KNOW, THE CONGESTION PART THAT AND, UH, UM, THEY DID SAY IT IS GONNA COST A LOT OF MONEY TO BUILD THOSE TRANSMISSION LINES TO GET IT, GET IT TO US.

I CAN TURN 30.

YEAH, THANK YOU MAYOR.

YOU KNOW, I, I'M, I'M REALLY ALARMED ABOUT THIS, UM, THIS PSA INCREASE THAT WE'RE GONNA HAVE.

UH, YOU KNOW, UM, WE REALLY PROMOTED, UH, RENEWABLE ENERGY, WIND, SOLAR, BUT I GUESS WE DIDN'T NOTICE, UH, FIGURE OUT HOW TO GET IT DELIBERATE TO IS SOME PART OF THE CONVERSATION HAS BEEN THAT, UH, THE TRANSMISSION LINES CANNOT HANDLE THE LOAD.

AND, UH, WE HAVE A, A BIG PROBLEM ON THE TRANSMISSION PRO PART OF IT AND IT'S, IT'S ALARMING CUZ YOU KNOW, WE'RE WE'RE HEADING TOWARD THAT DIRECTION WHERE WE'RE GONNA, UH, INCREASE OUR RENEWABLES, BUT FROM SOMEHOW WE CAN'T GET IT DEED TO US.

AND, AND, UH, TO ME THAT'S ALARMING.

YOU KNOW, I KNOW THE STATE HASN'T DONE MUCH

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AND, UH, WE WERE GONNA HAVE TO PAY FOR IT, BUT WE'RE PAYING FOR IT EITHER WAY BECAUSE WE CAN'T GET IT DELIVERED TO US.

AND, AND THAT'S IN A BIG ALARMING PROBLEM FOR ME THAT THE STATEMENT KNEW THAT WE WERE GONNA BE FACING THAT PROBLEM AND NEVER DID ANYTHING ABOUT IT.

AND THEY'RE STILL NOT HAVING RE HAVEN'T ADDRESSED THAT ISSUE YET.

AND IF I SEE MY RACE GOING UP THE WAY IT IS, I WOULD HAVE A LOT OF QUESTIONS TO THE STATE ALSO THAT WHAT THE HECK IS GOING ON? YOU KNOW, WE, DURING THE, UH, SERIES, YOU KNOW, A LOT OF BIG CORPORATIONS CAME IN HERE AND, UH, THEY SET UP THEIR POWER PLANTS UP READY TO GO AND, AND THEN THEY WALK AWAY WITH OVER SIX MILLIONS, ALMOST BILLIONS OF DOLLARS FROM US.

AND, UH, WE'RE HAVING TO PAY THAT BACK.

NOW, WE'RE LUCKY WE OWN OUR OWN PARK COMPANY AND WE MADE MONEY, BUT INSTEAD OF KEEPING IT, WE REIMBURSED IT BACK TO OUR GREAT PLAYERS.

AND, UH, WE REALLY NEED TO MAKE SURE THAT WE HAVE A HIGH RESERVE.

UH, IT'S GETTING TO THAT PART THAT WE'RE GONNA BE FACING A LOT OF HOT SUMMERS.

UH, THE PREDICTIONS ALREADY OUT THERE, THEY SAID IN THE NEXT, UH, 20 YEARS THAT WE'RE GONNA BE FACING TEMPERATURES THAT ARE SO EXTREME THAT WE HAVE NEVER SEEN.

AND, UH, I, I REALLY WANT TO, YOU KNOW, TELL PEOPLE, HEY MAN, IT'S TIME TO GET UP AND VOTE AND, AND FOR PEOPLE THAT ARE GOING TO ADDRESS THESE ISSUES AND, UH, IF NOT, WE'RE GONNA END UP PAYING THE BIG HIGH COST, WHICH, UH, IT'S GONNA BE A SHOCK OUT THERE TO THE RATE PAYERS WHEN THEY SEE THAT INCREASE.

YOU KNOW, WE'RE LOOKING EVEN AT SOMEHOW LOWERING THE PRICE INCREASE, IT'S STILL GONNA BE ABOUT SOMEWHERE IN THE THIRTIES DOLLARS A MONTH INCREASE.

AND THAT'S GONNA BE HARD ON PEOPLE.

SO, UM, I HOPE THAT WE REALLY LOOK TO THOSE ISSUES THAT WE'RE GONNA BE FACING AND IF WE ARE NOT GONNA BE ABLE TO GET THESE, UH, THE, OUR INVESTMENT THAT WE DOING AND RENEWABLE OVER THERE IN, UH, AND OUT IN THE DESERT WEST TEXAS, THAT WE NEED TO FIGURE OUT HOW TO GET, GET SOME HERE LOCALLY SO THAT WE DON'T HAVE THAT PROBLEM.

THANK YOU MR. MCCARTHY.

UH, MAY I ASK, UM, MR. GRESKI AND HIS COMMENTS TO ADDRESS, UH, A COUPLE DIFFERENT THINGS.

ONE IS I'M NOT SEEING THE OPTIONS IN THE BACKUP MATERIALS.

I KNOW WE HAD 'EM IN OUR LAST, BUT THIS IS THE TARIFF.

IT DOESN'T SHOW THE DIFFERENT OPTIONS UNLESS I'M JUST MISSING IT WITHIN THE BACKUP MATERIALS.

AND THEN I HAD ANOTHER QUICK QUESTION TO ASK YOU TO ADDRESS.

IS IT, IS, ARE THERE DIFFERENT OPTIONS INCLUDED WITHIN THIS? AND IF NOT, WHAT IS THE TARIFF? IS THE TARIFF JUST RECOVERING? IS THE TARIFF DRAFTED IN SUCH A WAY TO RECOVER ALL OF IT NOW? CORRECT.

THAT'S THE, THE CURRENT RATES THAT YOU'VE SEEN IN YOUR BACKUP MATERIALS ARE BASED UPON THE CURRENT TARIFF CALCULATION OF 12 MONTHS.

AND THE OPTION I'M GOING TO PRESENT TO YOU IS THAT, UM, A THREE YEAR APPROACH COLLECTING OVER THREE YEARS AS OPPOSED TO ONE YEAR.

BUT THAT IS NOT HOW THE TARIFF, THE TARIFF IN OUR BACKUP IS NOT DRAFTED IN SUCH A WAY IT'S DRAFTED TO COLLECT IT IMMEDIATELY, NOT OVER THREE YEARS.

THAT'S CORRECT.

SO IF WE WANT TO EXERCISE THE OPTION, WHICH IS WHAT I'M LEANING TO TOWARD OF COLLECTING IT OVER THREE YEARS, WE WOULD NEED TO ACTUALLY BRING FORWARD, UM, A MOTION THAT'S DIFFERENT FROM THE STAFF, RECOMMEND THE POSTED STAFF RECOMMENDATION.

THAT'S CORRECT.

I'LL, I'LL SHOW YOU SOME BUILD IMPACTS OF THAT THREE YEAR OPTION, AND IF THAT'S THE OPTION YOU DECIDE, THEN WE WILL MAKE SURE THAT THE, UH, MATERIALS THAT YOU NEED IN ORDER TO VOTE ON THURSDAY ARE, ARE AVAILABLE FOR YOU.

OPTIONS WE'RE GONNA LOOK AT.

SO LET'S HOLD OFF AND GET 'EM TO DISCUSS THIS PART OF HIS PRESENTATION, BUT AN ANSWER TO COUNCIL MEMBER'S QUESTION, TODAY'S PRESENTATION, YOU NEED TO TALK ABOUT THE OPTIONS AND YOU ALSO NEED TO COME PREPARED ON THURSDAY FOR US TO BE ABLE TO ACT ON THE OPTIONS.

AND I THINK IT WOULD BE GREAT TO POST THAT AS BACKUP AGAIN, EVEN THOUGH IT WAS IN THE PREVIOUS DISCUSSION.

I THINK WE NEED THOSE, THAT OPTION CHART POSTED AS BACKUP FOR THIS COUNCIL MEETING ON THURSDAY.

UM, MR. JIM BROSKI, JUST TO THE, TO THE POINT OF WHAT THE MAYOR AND I AND OTHERS WERE TALKING ABOUT, IF IN YOUR COMMENTS, COULD YOU PLEASE ADDRESS, IF WE TOOK ONE A, THE MAYOR'S ONE A, BUT ACTUALLY HAD SOME MORE PRESCRIPTIVE MEASURES OF HAVING IT COME BACK THREE MONTHS, UM, OR SIX MONTHS, CAN YOU TALK ABOUT THE DIFFERENT, WHAT THE IMPACT WOULD BE, SAY, OF COMING BACK EVERY THREE MONTHS, REEVALUATING IT EVERY THREE MONTHS VERSUS EVERY SIX MONTHS? I CAN, UM, I HAVE A PART OF THAT IN, IN MY PRESENTATION.

[00:30:01]

YEAH, WELL, WE'LL TALK.

THOSE ARE, THOSE ARE JUST SOME OF THE QUESTIONS.

I SAID I HAD A 10% QUESTION, BUT I ALSO HAVE A QUESTION ABOUT WHICH OF THOSE, YOU KNOW, WE'RE SHIFTING FROM EVERY YEAR.

WOULD IT BE EVERY THREE MONTHS? WOULD IT BE EVERY SIX MONTHS? AND IF YOU COULD ADDRESS THE, THE BENEFITS, THE RELATIVE BENEFITS OF EACH.

WE'LL TRY THIS.

HERE'S YOUR PRESENTATION.

LET'S GO TO YOU AND LET YOU TALK TO US.

NOW.

SO, UH, THANK YOU.

GOOD MORNING, MARK DAM BROSKI.

I'M THE CFO OF BOSTON ENERGY.

UM, AND I HOPE TO ANSWER ALL OF THE QUESTIONS THAT YOU HAD FROM THE LAST, UH, WORKSHOP, I BELIEVE TWO WEEKS AGO, AS WELL AS SOME THAT YOU'VE POSED TODAY INTO THE ONES THAT I CAN'T GET TO.

I WILL, UH, TRY TO FOLLOW UP WITH YOU AS SOON AS I CAN.

JUST REAL QUICK, IS THAT PRESENTATION WAS THAT EMAILED TO US SO WE CAN PULL IT UP ON OUR LAPTOPS? I DON'T KNOW HOW THAT HAPPENS.

UM, IT JUST SHOWS UP.

OR IF I COULD GRAB, IF SOMEONE CAN, IF I COULD HAVE IT PRINTED, THAT WOULD BE HELPFUL RIGHT NOW.

SAN ANTONIO'S, UH, CPS ENERGY, UM, BUT IT IT TELLS US THAT WE NEED TO ADDRESS LIQUIDITY ISSUES BEFORE IT GETS WORSE.

I APOLOGIZE.

AND THAT'LL BE ADDED TO BACKUP TOO.

JUST TURNED ON HERE.

SHOULD BE WORKING, BUT IT'S NEXT.

OKAY, GREAT.

ALL RIGHT, SO TODAY I'M GONNA COME UP, UM, I HAVE SOME INFORMATION ON THOSE FOLLOW-UP REQUESTS FROM THE LAST WORK SESSION THAT WE HAD, UH, SOME SPECIFIC QUESTIONS THAT SOME OF YOU HAD.

UH, I'M GONNA TO COMPARE THE TWO OPTIONS THAT WERE, UH, MOSTLY DISCUSSED LAST WORKSHOP, WHICH WAS, YOU KNOW, THE 12 MONTH RECOVERY VERSUS THE THREE YEAR RECOVERY.

AND I'VE GOT SOME BILL IMPACTS FOR VARIOUS TYPES OF CUSTOMERS ON THAT.

AND THE RECOMMENDATION FOR THE 2023 PSA AS WELL AS FUTURE METHODOLOGIES FOR SETTING THE POWER SUPPLY ADJUSTMENT.

UM, I DON'T HAVE ANY REAL ANSWERS FOR YOU TODAY, BUT I HAVE SOME SUGGESTIONS THAT, UH, WE MIGHT PURSUE, UM, OVER THE NEXT YEAR.

NEXT PAGE PLEASE.

A FEW QUESTIONS.

NEXT PAGE IS THIS JUST TO, ALL RIGHT, SO, UH, LAST TIME, UH, WE MET SOME OF YOU HAD QUESTIONS ABOUT WHAT'S HAPPENING WITH, WITH OTHER UTILITIES.

AND SO WE'VE GOT SOME SNIPPETS OF SOME, UM, HEADLINES THAT WE'VE, UH, CAPTURED.

UM, SO FIRST WAS, YOU KNOW, CPS ENERGY, WHICH IS, UH, OF OTHER UTILITIES MOST LIKE AUSTIN ENERGY.

UM, AND YOU CAN SEE THAT THEIR RATES ARE UP CONSIDERABLY.

THEY'RE, THEY'RE, UH, $234 IS THEIR, UH, AVERAGE BILL THAT'S UP 32% FROM A YEAR AGO AND 35% OVER THE LAST FIVE MONTHS.

AND YOU'LL SEE THAT'S A SIMILAR PATTERN THAT, THAT WE HAVE, UH, NEW BRO FLOWS, UTILITIES, UH, THEIR, THEIR COSTS ARE, ARE SIGNIFICANTLY INCREASING.

UM, AND OF COURSE, UM, STATEWIDE WE'RE SEEING IT.

THEY HAVE A 70% INCREASE, UM, IN PRICE OF ELECTRICITY IN, IN TEXAS AS A WHOLE, THAT, THAT'S ACO MARKET THERE.

SO AS YOU CAN SEE, THIS IS A, UM, COMMON DILEMMA FOR MANY UTILITIES IN TEXAS.

UM, I APOLOGIZE FOR THE SIZE OF THE FONT ON HERE, BUT ONE OF THE OTHER QUESTIONS WAS, UM, IN TERMS OF CREDIT, WHAT'S HAPPENING TO OTHER TEXAS UTILITIES, UM, ACROSS, UH, TEXAS.

AND SO THIS IS, UM, A SNAPSHOT OF RECENT, UH, MAJORITY DOWNGRADES OF, UH, PUBLIC POWER AND THAT INCLUDES MUNICIPAL UTILITIES AS WELL AS CO-OPS ACROSS.

AND YOU CAN SEE ABOUT THREE QUARTERS OF THOSE REALLY HAPPENED IN THE FIRST FEW MONTHS AFTER WINTER STORM UY.

AND WHAT WAS REALLY DRIVING THAT WAS, UM, THE IMPACT OF THE WINTER STORM ON THEM.

AND SO THOSE NUMBERS, YOU SEE, UH, THE UNIT YEAR COST PER CUSTOMER, SO THAT'S HOW MUCH, UM, TO BUY ALL THAT EXTRA POWER PER CUSTOMER EACH OF THESE UTILITIES INCURRED.

AND SO THEY HAD SOME REAL, UM, LIQUIDITY CHALLENGES EARLY ON AFTER THE STORM, AND SO THAT PRECIPITATED THOSE DOWNGRADES.

AUSTIN ENERGY WAS DIFFERENT, AS YOU CAN SEE, WE'RE THE ONLY UTILITY THAT HAD A CREDIT.

UM, OUR GENERATION, UH, FOR THE MOST PART STAYED UP AND RUNNING DURING THE STORM PRICES WERE VERY HIGH.

AND SO WE WERE ABLE TO PROVIDE, UH, A CASH BENEFIT FOR OUR CUSTOMERS THAT WE GAVE BACK LAST YEAR IN THE PSA.

UM, AND YOU ALSO SEE OUR DOWNGRADED, UH, WAS DELAYED.

IT HAPPENED IN IN AUGUST.

UM, BUT FOR THE SAME REASON BECAUSE OF LIQUIDITY, UM, WE SAW, UM, WE, WE LOWERED OUR, OUR POWER SUPPLY COST INTO A RISING MARKET.

UM, AND SO THAT COST STRAIN ON OUR LIQUIDITY, UM, OR THE AMOUNT OF CASH WE HAVE ON HAND, AND THAT WAS THE REASON FOR THE DOWNGRADE ON US IN, IN AUGUST.

UM, SO THE SAME REASON, BUT DIFFERENT TIMING THAN OTHER UTILITIES.

UM, BUT I THOUGHT THAT THAT SHOWS AN INTERESTING PICTURE THERE.

UH, AS I POINTED OUT THAT WE ARE AT DOUBLE A MINUS, WHICH IS STILL A VERY GOOD CREDIT RATING.

UM, AND YOU CAN SEE COMPARED TO OTHER UTILITIES WE'RE, WE'RE MOST LIKE, AGAIN, UM,

[00:35:01]

IS IS OUR OUR TAKEAWAY FROM THAT.

BUT YOU'RE SEEING THOSE HIGH COST OF ENERGY FLOWING THROUGH THERE THAT WE CANNOT COMPLETELY, UH, AVOID, UH, WITH OUR, WITH OUR ACTIONS.

AND SO, UH, THE QUESTION WAS, UH, HOW DO YOU AS COUNCIL GET THIS INFORMATION? UM, AND SO WE'VE BEEN DOING QUARTERLY FINANCIAL UPDATES FOR YOU, UM, THE LAST SEVERAL YEARS AND WE TRY TO KEEP THE, THE CHARTS AND THE WAY WE SHOW YOU THE INFORMATION CONSISTENT.

AND SO, UM, I TOOK THIS CHART THAT WE PRESENT, UH, EACH OF THE QUARTERLY BRIEFINGS.

UM, AND SO YOU SAW THIS IN THE THIRD QUARTER BRIEFING AND IT WAS THROUGH, UH, JUNE, WHICH IS THE END OF THE THIRD QUARTER.

AND WE'VE UPDATED IT WITH JULY AND AUGUST NUMBERS AS WELL AS WHAT WE ESTIMATED TO BE SEPTEMBER.

UM, AND SO YOU CAN SEE, UH, IN MAY AND JUNE THAT THAT, THAT YOU SAW, WE SAW SPIKE, UH, PRICES COMING THROUGH THE BUDGET AND THAT LINE IS THE AMOUNT OF REVENUE THAT WE ARE COLLECTING FROM THE CUSTOMERS.

AND AGAIN, IT WAS SET ON PURPOSE TO UNDER RECOVER SO THAT WE WOULD GIVE BACK THAT CASH THAT WE EARN DURING WINTER STORM UY.

AND THAT REALLY, UH, YOU CAN SEE IN JULY $93 MILLION OVER SIGNIFICANT OVER BUDGET, UM, CONTINUED ON THROUGH AUGUST AND WHAT WE ESTIMATE IN SEPTEMBER.

SO THAT TREND HAS CONTINUED OF THE HIGH PRICES AND THAT'S WHERE YOU CAN SEE THAT IN THAT FINANCIAL, UM, CHART.

AND ANOTHER CHART, UH, THAT YOU SEE IN YOUR QUARTERLY UPDATES, UM, IS OUR POWER SUPPLY ADJUSTMENT COST COMPONENTS.

SO AS YOU KNOW, IT'S, THERE'S A LOT OF THINGS THAT GO INTO OUR POWER SUPPLY ADJUSTMENT.

UH, SO THE FIRST ONE THAT WE ALWAYS TALK ABOUT IS OUR LOAD ZONE.

AND SO WE BUY ALL THE POWER WE NEED FROM OUR COT TO SERVE OUR CUSTOMERS AND WE BUY THAT AS A POWER COMES IN, IT'S CALLED AUSTIN ENERGY LOAD ZONE.

UM, AND OVER THE DWELLING 12 MONTHS OUT OF END OF AUGUST, WE HAD SPENT 1,079 MILLION BUYING POWER TO SERVE OUR CUSTOMERS.

UH, THAT'S, THAT'S LIKE THE WHOLESALE RATE YOU THINK OF THAT.

BUT WE DO A LOT OF THINGS HERE AT AUSTIN ENERGY TO, UH, MINIMIZE THE PRICE THAT OUR CUSTOMERS ACTUALLY PAY.

UH, WE HAVE OUR OWN GENERATION FLEET, UM, AND SO WE RUN THOSE ASSETS WHEN THEY'RE IN THE MONEY.

SO IF THE PRICE OF ENERGY, UH, AT THE TIME EXCEEDS THE COST, IT TAKES US TO RUN THOSE GENERATORS, WE TURNED THEM ON AND WE PRODUCED POWER AND THAT BUYS DOWN THE RATE FOR OUR CUSTOMERS.

AND YOU CAN SEE, UH, THROUGH THAT 12 MONTHS WE HAD PRODUCED A NET 386 MILLION, UH, TO BENEFIT OUR CUSTOMERS BY RUNNING THOSE GENERATORS.

UM, THE NEXT IS WE HAVE POWER PURCHASE AGREEMENTS.

UH, WE DON'T OWN THE ASSETS, BUT WE BUY THE POWER THAT THEY PRODUCE.

AND ALL OF THESE ARE RENEWABLES.

THERE'S, UH, WIND AND SOLAR HERE.

AND FOR THE 12 MONTHS, UH, THOSE ASSETS PRODUCED, UH, AN 85 MILLION BENEFIT FOR OUR CUSTOMERS.

UM, AND I WANNA POINT THIS OUT THAT TYPICALLY THAT IS A COST FOR US, BUT BECAUSE OF THE HIGH PRICES WE'RE SEEING AND WE HAVE FIXED PRICES ON THOSE, UH, POWER PURCHASE AGREEMENTS, IT ACTUALLY PRODUCED A BENEFIT, UM, SIGNIFICANT ONE FOR US, $85 MILLION FOR 12 MONTHS.

THE NEXT IS GREEN CHOICE AND VALUE OF SOLAR.

SO GREEN CHOICE IS AN OPTION THAT CUSTOMERS CAN ELECT, UM, WHEN IT COMES AT A SLIGHT PREMIUM.

AND THEY ARE ATTRIBUTED THE BENEFITS OF RENEWABLE, UH, ENERGY, UH, IN, IN THEIR BILLS.

AND SO THAT IS A COST REDUCTION FOR THE POWER SUPPLY ADJUSTMENT AND VALUE OF SOLAR.

UM, ONE OF THE THINGS WE POINT OUT THAT, YOU KNOW, WE TALK ABOUT TRANSMISSION BEING A CONGESTION, ONE OF THE SOLUTIONS FOR THAT IS DISTRIBUTED GENERATION, ROOFTOP SOLAR, COMMUNITY SOLAR.

THAT POWER IS PRODUCED RIGHT HERE IN OUR LOAD ZONE AND IT DOESN'T HAVE TO BE TRANSPORTED IN.

SO WE, WE, WE CAN AVOID CONGESTION COSTS ON THE GRID.

UM, THAT DOESN'T MEAN, UH, IT'S AN EXACT TRADE OFF CUZ THERE'S, IT COSTS MORE FOR THAT.

BUT THAT IS ONE SOLUTION, UH, IS PART OF OUR PROBLEM IS, UH, MORE RELIANCE ON DISTRIBUTED GENERATION.

UM, BUT THAT VALUE OF SOLAR, THAT'S WHAT THAT IS.

SO WE'RE PAYING CUSTOMERS TO PUT THAT SOLAR ON THEIR ROOF, UH, AND THEY GET, UH, A REDUCTION, UM, IN THAT THE LAST, UH, THERE IS BILATERAL AND HEDGING.

THESE ARE FINANCIAL, UH, INSTRUMENTS THAT WE USE AT, AT AUSTIN ENERGY, UH, TO PROVIDE ECONOMIC BENEFIT FOR OUR CUSTOMERS.

AND SO THOSE ACTIONS THAT WE TOOK, UH, GENERATE 58 MILLION OF, OF NET BENEFIT FOR OUR CUSTOMERS.

SO OVER 12 MONTHS WE WERE ABLE TO REDUCE THAT 1,079 MILLION BY ALMOST IN HALF, UH, TO DOWN TO 535 MILLION.

UM, SO THAT'S A SIGNIFICANT BENEFIT FOR OUR CUSTOMERS, BUT THAT, THAT END ENDING NUMBER IS STILL MUCH LARGER THAN WE TYPICALLY SEE OVER 12 MONTH.

WE WOULD NORMALLY EXPECT TO SEE AROUND 300, 350 MILLION IS OUR, WOULD BE OUR NET COST.

[00:40:01]

OKAY, SO THIS IS ANSWERS I THINK SOME OF THE QUESTIONS THAT I KNOW COUNCIL MEMBER TOVO HAD ABOUT, UM, WHY DIDN'T WE REACT QUICKER OR THE, THE, THE 10% OF ADJUSTMENT.

AND SO AS YOU CAN SEE, THIS CHART SHOWS, UM, THE BLUE BAR IS OUR, UM, RUNNING TOTAL OF OUR OVER COLLECTION THAT HAPPENED FROM WINTER STORM MUR.

SO WE SET THE RATE BACK ON NOVEMBER 1ST, 2021 TO, UH, UH, GIVE THAT CASH TO OUR CUSTOMERS TO A REDUCTION TO POWER SUPPLY.

AND IT'S DESIGNED TO BE, UH, IF EVERYTHING HAPPENS EXACTLY AS WE PLAN TO BE AT ZERO ON OCTOBER 31ST.

UM, SO IT'S INTENDED TO GIVE BACK OVER 12 MONTHS.

UM, THINGS, UH, CONSISTENTLY DON'T HAPPEN AS WE PLAN THINGS HAPPEN.

UM, BUT YOU CAN SEE IN THE EARLY PART OF THE YEAR THEY WERE PRETTY MUCH GOING ON ON SCHEDULE.

SO YOU CAN SEE WE, UM, THE ORANGE BARS, WHAT HAPPENED IN THAT MONTH.

AND SO IN NOVEMBER WE GAVE BACK $8 MILLION TO THE CUSTOMER.

IN DECEMBER IT WAS 8 MILLION.

UM, IN JANUARY WE HAD, UM, A DIFFERENT LOAD AND WE ANTICIPATED AND WE ACTUALLY COLLECTED A MILLION DOLLARS.

AND THEN YOU CAN SEE HOW THE PATTERNS GO THROUGH IN MAY.

UH, WE SAW A SIGNIFICANT, UM, UNDER COLLECTION FOR THE MONTH OF $28 MILLION.

AND THIS IS REALLY WHEN PRICES AND THE WEATHER BOTH HIT US.

IF YOU REMEMBER THAT WE HAD A VERY HOT SUMMER THAT STARTED EARLIER IN THE SPRING, SO PEOPLE WERE USING A LOT MORE ENERGY.

IN FACT, BETWEEN MAY AND AUGUST THEY USED 14% MORE ENERGY THAN NORMAL.

UM, AND SO THAT OVER A COLLECTION THAT WE HAD WAS BEING DEPLETED FASTER THAN WE HAD PLANNED ON, BUT IT WASN'T, UH, IT WAS STILL IN AN OVER COLLECTION PHASE UNTIL JULY, UH, IN WHICH WE HAD A 43 MILLION UNDER COLLECTION.

AND THAT DREW US DOWN TO AN OVERALL UNDER COLLECTION OF 27 MILLION.

AND SO WE HAVE THIS 10% POLICY WITHIN OUR POWER SUPPLY THAT SAYS, UM, WE WILL ADJUST THE RATES IF WE'RE 10% PLUS OR MINUS OF THE POWER SUPPLY COST, UH, NOT THE RATES OR WE COLLECT FOR CUSTOMERS BUT OUR POWER SUPPLY COST.

AND SO I SHOWED YOU EARLIER WHERE THOSE POWER SUPPLY COSTS ARE GETTING LARGER AND LARGER AND SO THAT 10% IS LARGER AND LARGER.

UM, AND AS YOU CAN SEE, IF YOU LOOK IN THERE IN SEPTEMBER THAT THE TOTAL UNDERCOVER IS ABOUT 61 MILLION.

THAT'S THE POINT THAT WE HIT THE 10%.

BUT AT THAT POINT WE WERE ALREADY WORKING WITH, UM, WITH YOU TO ADJUST THE RATE OR USING OUR NORMAL POWER SUPPLY ADJUSTMENT TIME PERIOD SO WE COULD NOT HAVE ACTED QUICKER UNDER THE CURRENT EXISTING POLICY.

UM, AND AS YOU CAN SEE BY THE END OF THE YEAR, UH, WE WERE, UH, UNDER COLLECTED BY 77 MILLION, UH, BY IN OCTOBER IS WHERE WE EXPECT TO BE.

AND UH, THEN WE HAVE THE, UM, LITTLE PIECE THAT'S LEFT OVER FROM THE ERCOT BANKRUPTCY THAT WE'RE GONNA COVER A LITTLE BIT LATER HERE.

UM, AND SO WE WERE SIGNIFICANTLY UNDERCOVERED FOR THE YEAR.

UM, THAT WAS RESULT OF BOTH HIGHER PRICES AS WELL AS MORE ENERGY BEING USED BY OUR CUSTOMERS, AND WE WERE USING MORE ENERGY AT A MUCH SLOWER RATE THAN THAN WE NEEDED TO COLLECT.

SO THAT CAUSED THE UNDER COLLECTION.

UM, SO I THINK THAT THAT ADDRESSES SOME POINTS WE'VE MADE, WHICH IS, UM, PERHAPS THE TRIGGER ABOUT WHEN WE LOOK AT THE PSA SHOULD NOT BE POWER SUPPLY COST, BUT MAYBE MORE RELATED TO WHAT OUR CUSTOMERS SEE, WHICH IS THE IMPACT ON THEIR BILL MIGHT BE A BETTER TRIGGER THAN THE POWER SUPPLY COST, ESPECIALLY IN A VERY VOLATILE MARKET.

AND PRICES.

AND WHERE, UM, CLIMATE CHANGE IS CAUSING US OUR PATTERNS OF USE OF ENERGY, UH, IS, IS VERY DIFFERENT THAN MAYBE OUR HISTORICAL USE.

UM, THE NEXT REQUEST THAT WE HEARD FROM YOU WAS YOU WANTED TO SEE, UH, A COMPARISON OF RATES ACROSS DIFFERENT UTILITIES AND YOU WANTED TO SEE WHAT ARE OTHER UTILITIES DOING IN TERMS OF THEIR POWER SUPPLY ADJUSTMENT.

THIS CHART TRIES TO ANSWER BOTH OF THOSE, BUT IT REQUIRES A LITTLE EXPLANATION.

UH, SO THE FIRST THING I WANNA POINT OUT IS, UH, ALL UTILITIES ARE NOT THE SAME.

WE DON'T ALL HAVE A POWER SUPPLY ADJUSTMENT AND WE DON'T IN THOSE AND WE DON'T, AND THOSE THAT DO HAVE IT DON'T CALCULATE IT THE SAME WAY.

SO FOR EXAMPLE, UM, UM, HERE WE HAVE P C, WHICH IS, UH, PER ELECTRIC COOPERATIVE.

UM, UM, SOME OF YOUR CONSTITUENTS GET POWER FROM PER ANALYSIS, UM, PER ANALYSIS DOES NOT OWN GENERATION.

THEY ARE JUST A WIRES COMPANY.

SO THEY BUY ALL OF THEIR POWER FROM SOMEONE ELSE LIKE LCR OR SOME OTHER PROVIDER UNDER A CONTRACT TO PROVIDE TO THEIR CUSTOMERS.

SO THEY

[00:45:01]

DON'T HAVE THE OFFSETTING GENERATION FOR THEIR, THEIR POWER SUPPLY COSTS.

SO THEY'RE GOING TO BEHAVE A LITTLE BIT DIFFERENTLY.

THEY MAY HAVE A LITTLE BIT MORE STABILITY IN THEIR PRICE, UH, BUT THOSE PRICES MIGHT BE A LITTLE BIT HIGHER ON AVERAGE THAN WE HAVE IN AUSTIN ENERGY.

UH, AND THE SAME AS WITH BLUE.

SAME CREWS WITH BLUE BONNET, UM, AND SO MANY OTHER, UM, UH, SAM MARCUS DOES NOT OWN GENERATION, BUT THEY ARE MUNICIPAL UTILITY, BUT YOU'RE MUCH SMALLER THAN AUSTIN ENERGY.

UM, AND THEY HAVE DIFFERENT, UH, GENERAL FUND TRANSFERS.

ALL MUNICIPAL UTILITIES HAVE SOME GENERAL FUND TRANSFER.

THEY'RE ALL SET AT DIFFERENT WAYS AND THEY'RE COLLECTED DIFFERENT WAYS, SO IT'S VERY HARD TO DO A APPLES, APPLES TO COMPARISON.

THE OTHER CHALLENGE WE HAVE IS, UH, UTILITIES CONSUMPTION IS DIFFERENT.

UM, GEORGETOWN AND AUSTIN ARE VERY SIMILAR.

WE BOTH HAVE ABOUT, ON A TYPICAL CUSTOMER USES ABOUT 850 TO 860 KILOWATT HOURS PER MONTH.

AND SO WE DESIGN RATES BASED UPON HOW MUCH ENERGY OUR CUSTOMERS USE OR WE SHOULD OTHER UTILITIES, UH, LIKE HERD S THEIR CUSTOMERS USE ABOUT 1200 KILOWATT HOURS PER MONTH.

AND IF YOU THINK ABOUT THE TYPES OF CUSTOMERS THEY SERVE, THEY'RE, UM, THEY'RE LARGER, MOSTLY SINGLE FAMILY HOMES OR THEY'RE RURAL.

UH, IF YOU THINK LIKE HOMES IN CIRCLE C ARE, UH, PERNEL TYPE CUSTOMER HOMES.

AND SO THEIR RATES, THEY, EVEN IF THEY HAVE THE SAME AMOUNT OF COST, THEY HAVE MORE KWH TO SPREAD THOSE COSTS OUT OVER.

SO THEIR COST PER KW H IS LOWER.

UM, SO WHEN YOU DO A COMPARISON BASED UPON A SET NUMBER OF K K H LIKE 860, WHICH IS OUR TYPICAL CUSTOMER, THEY'RE GONNA REFLECT THE LOWER BILL.

BUT IN FACT, OUR CUSTOMERS DON'T NECESSARILY PAY THAT KIND OF BILL.

THEY PAY ONE BASED UPON THEIR CONSUMPTION.

SO THAT'S THE BLACK BAR.

SO AFTER THAT LONG DRAWN OUT EXPLANATION, UH, WHAT THIS SHOWS IS, UH, THE ORANGE BAR IS, UM, USING 860 KILOWATT HOURS, WHICH IS A TYPICAL AE CUSTOMER, THE 2021 BILL A CUSTOMER MIGHT PAY.

UM, THE TWO, THE THE GOLD BAR, THE YELLOW BAR THERE IS BASED UPON CURRENT RATES 2022.

AND SO WE'RE TRYING TO ISOLATE WHAT ARE ALL THE THINGS THAT ARE CHANGING OVER THE COURSE OF THE YEAR, WHICH IS MOSTLY A JUST, UH, ASSOCIATED WITH POWER SUPPLY COST.

UM, AND SO THE DIFFERENCE BETWEEN THE ORANGE BAR AND THAT YELLOW BAR IS WHAT YOU CONTRIBUTE TO THE POWER SUPPLY COST.

UM, AND TO, UH, BE TRANSPARENT HERE, WHAT I DID WAS FOR AUSTIN ENERGY, THAT SECOND SET OF BARS THAT, THAT GOLD BAR WE HAVE BAKED IN THE FULL COST OF THE PROPOSED BASE RATE INCREASE AS WELL AS THE 12 MONTH ASSUMPTION OF THE POWER SUPPLY COST.

SO, UM, YOU MIGHT CONSIDER IT A WORST CASE SCENARIO.

SO THAT'S WHERE RATES WOULD GO IF WE WERE TO ADOPT BASE RATES AND THE ONE YEAR POWER SUPPLY COST ADJUSTMENT.

UM, AND THEN THE BLACK BAR IS WHAT, UH, THE SAME RATES BUT BASED UPON THE ACTUAL UTILITIES CONSUMPTION LEVEL.

SO THOSE ARE THE BILLS THAT THEIR TYPICAL RESIDENTIAL CUSTOMERS MIGHT PAY.

SO I APOLOGIZE TO LONG EXPLANATION, BUT THERE'S A LOT OF GOING ON IN THAT CHART.

UM, AND THE, THE, THE LEVEL THAT WE USE FOR THE CONSUMPTION IS BASED UPON, UM, THE ENERGY INFORMATION ADMINISTRATION.

UH, ALL UTILITIES MUST PROVIDE DATA TO THE FEDERAL GOVERNMENT, BUT THERE'S ABOUT A ONE YEAR LAG.

AND SO THIS DATA IS FROM 2020, WHICH WE, UH, WE'RE ABLE TO GET IN OCTOBER OF 21, AND THAT'S THE LATEST INFORMATION WE HAVE.

BUT SINCE IT'S OCTOBER OF, UH, 22, WE'RE ABOUT TO GET A NEW SET OF DATA FOR CALENDAR YEAR OF 21.

AND WE CAN UPDATE THIS, UH, ONCE WE START GETTING INTO THE BASE RATE DISCUSSIONS AND I SHOULD HAVE THAT DATA AVAILABLE FOR YOU.

UH, BUT THIS IS THE LATEST DATA THAT WE HAVE.

UM, THE NEXT WAS, UM, WE'VE OFTEN TALKED ABOUT THE PRICE OF NATURAL GAS BEING THE DRIVERS ABOUT, I SHOWED YOU LAST TIME ABOUT 42, 40 3% OF THE GENERATION IN TEXAS, UH, USES NATURAL GAS AS A FUEL SOURCE.

UM, AND BECAUSE OF THAT, IT'S WHAT SETS THE MARKET PRICE, UH, OFTEN FOR ELECTRICITY IN TEXAS.

AND SO THIS CHART HAS, UH, TWO, TWO INDICATORS FOR YOU.

SO, UM, THIS IS A, A 10 HISTORY.

UM, AND THE ORANGE LINE, THAT TOP LINE THERE IS, UH, THE POWER SUPPLY ADJUSTMENT OVER 10 YEARS.

AND YOU CAN SEE, UH, EARLY ON BACK IN 12 AND 13, UM, GAS PRICES WERE A LITTLE BIT HIGHER.

THAT'S THE YELLOW LINE.

AND THEN WE SETTLE DOWN TO A LONG PERIOD OF A VERY STABLE POWER SUPPLY ADJUSTMENT.

AND WHAT WE SAW WAS GAS PRICES WERE GOING UP AND DOWN AS, AS THEY NORMALLY DO, UH, BUT WE WERE ABLE TO PROVIDE STABILITY THROUGH THE POWER SUPPLY ADJUSTMENT USING OUR CURRENT POLICIES THAT WE HAVE IN PLACE.

AND THAT WORKED WHEN GAS WAS $3 OR $2 AND 75 CENTS

[00:50:01]

A DEC OF THE, UM, AND SO WE WERE ABLE TO PROVIDE THAT STABILITY TO OUR CUSTOMERS.

AND THEN YOU SEE AS YOU GET IN, UH, CLOSER TO 2021, THAT THAT YELLOW LINE JUST ALMOST GOES VERTICAL.

AND THAT'S THE PRICE OF NATURAL GAS.

IT'S CALLED HENRY HUB.

IT'S, IT'S A CLEARING PRICE FOR US HERE IN TEXAS.

AND REALLY YOU SEE THE POWER SUPPLY ADJUSTMENT THEN REACTING TO THAT, THAT THAT PRICE OF NATURAL GAS INSTEAD DRIVES ELECTRICITY PRICES.

THE POWER SUPPLY KIND OF MIRRORS THAT, THAT SAME, UH, SLOPE ON, ON THE NATURAL GAS.

AND THAT'S REALLY WHAT WHAT WE'RE SEEING HERE.

UM, AND SO, UH, ONE OF THE THINGS THAT UM, I THINK ARE WISE IN ASKING IS SHOULD THERE BE DIFFERENT WAYS OF LOOKING AT POWER SUPPLY ADJUSTMENT GIVEN THAT NATURAL GAS MARKETS ARE CHANGING? AND I THINK THAT'S A WISE THING FOR US TO DO NEXT YEAR.

UM, THE NEXT WAS, UM, YOU HAD ASKED, UH, WHAT'S DRIVING THIS IN TERMS OF, UM, UH, CAUSES.

AND SO WE, UH, WE PUT SOME DOLLAR VALUES, UM, ON SOME OF THOSE CAUSES.

AND SO, UH, THE TWO THOU, LIKE I SAID, WE, OUR POWER SUPPLY ADJUSTMENT IS BASED UPON ACTUAL COST.

SO WE USED LAST YEAR'S ACTUAL COST TO SET NEXT YEAR'S ACTUAL RATE AND WE APPLY THAT RATE TO EVER HOW MUCH ENERGY THE CUSTOMER USES.

AND SO IN 2021, UM, OUR, OUR PSA AMOUNT, WHAT THE RATES WERE SET TO RECOVER WAS 350.9 MILLION.

UM, OVER THE COURSE OF THE YEAR, I YIELD A LOT OF THINGS CHANGED ON US THAT INCREASED, UM, WHAT THOSE ACTUAL COSTS WERE BY 288 MILLION.

SO THAT RESULTS IN THE ACTUAL COSTS THAT WE NEED TO RECOVER FROM OUR CUSTOMERS NEXT YEAR TO 639 MILLION.

UM, AND I'LL TRY TO BREAK SOME OF THESE DOWN.

UM, THEY'RE NOT EASY TO PUT IN DISCRETE BUCKETS, UM, BUT WE DO KNOW THAT, UM, WE TALKED ABOUT THAT WINTER STORM MEY, THAT ADDITIONAL CASH THAT WE RECOVERED, UH, FROM THE WHOLESALE MARKET BECAUSE OUR GENERATORS WERE UP AND RUNNING, UH, WE WERE ABLE TO GIVE 69 MILLION CREDIT TO OUR CUSTOMER BILLS OVER A 12 MONTH PERIOD.

SO IF EVERYTHING ELSE REMAINED EXACTLY THE SAME, THE PSA RATE WAS GONNA GO UP ANYHOW BECAUSE THAT CREDIT HAD BEEN GIVEN TO OUR CUSTOMERS, RIGHT? SO WHEN THAT CREDIT WAS EXTINGUISHED, THEY HAD TO GO BACK UP TO THE MARKET RATE.

SO THAT'S $69 MILLION OF THE INCREASE.

UM, WE TALKED ABOUT THE CONGESTION THAT'S GOING ON IN THE GRID.

UM, AND SO IT'S LIKE A HIGHWAY, UM, THAT WE HAVE MORE ELECTRONS TRYING TO GET ONTO.

THOSE TRANSMISSION GRIDS FROM GENERATORS ARE BEING ASKED TO BE UP AND RUNNING TO PROVIDE RELIABILITY AS WELL AS, UH, A LOT MORE RESOURCES COMING ONLINE, A LOT MORE WIND AND RENEWABLE THAT'S IN A PART OF THE TEXAS THAT IT CAN BE PRODUCED EASILY.

UM, AND SO IT COMPETES TO GET ON THE GRID AND THAT CAUSES CONGESTION.

THE SOLUTION TO THAT IS MORE TRANSMISSION LINES, BUT THAT'S A LONG-TERM SOLUTION.

TAKES SEVEN TO 10 YEARS TO, UH, FROM THE TIME YOU WANNA BUILD A TRANSMISSION LINE TILL YOU GET IT PERMITTED, YOU GET IT CONSTRUCTED AND ONLINE WORKING.

SO IT'S A LONG TERM SOLUTION.

UH, SO THERE'S A COUPLE REASONS FOR THAT CONGESTION, BUT IT REALLY DOES DRIVE UP THE COST OF THE POWER WE BUY.

UM, IT'S, IT'S SUPPLY AND DEMAND AND SO THAT, UH, WE'VE ATTRIBUTED ALMOST, UH, ALMOST 41 MILLION FOR THAT.

UH, THE NEXT IS, AS I POINTED OUT, THE COST OF NATURAL GAS.

UM, WE USE NATURAL GAS OURSELVES, UH, FOR OUR SANDHILL PLANT AS WELL AS SOME OF OUR TURBINE ENGINES, UM, RUN ON NATURAL GAS AS WELL AS THE FOLKS THAT WE BUY POWER FROM, RIGHT? SO THEY'RE PRODUCING POWER, SELLING IT AN ERCO AT A HIGHER RATE CUZ THEIR FUEL COSTS ARE HIGHER AND THEN WE HAVE TO BUY IT FROM ERCOT.

SO OUR COSTS ARE HIGHER.

WE'VE ATTRIBUTED A LITTLE OVER 50 MILLION AS A RESULT OF THAT, THOSE NATURAL GAS PRICES.

AND FINALLY, BECAUSE OUR LATE, OUR RATE WAS SET, UH, SO LOW, UM, THAT AS WE MARCHED THROUGH THE COURSE OF MAY, JUNE, JULY AND TOLD YOU EARLIER, WE WERE NOT RECOVERING ENOUGH TO COVER THESE COSTS AND SO THERE'S LIKE A MAKEUP PAYMENT, UM, AND THAT'S ABOUT 86 MILLION, UH, BECAUSE OUR RATE WAS NOT RECOVERING THE ACTUAL COST AT THE TIME.

UM, IT'S, UM, AND THEN THE LAST PIECE WHICH WE CONTRIBUTED TO OTHER FACTORS, AND THERE'S A LOT OF THINGS THAT GO INTO THIS.

SO, UM, OTHER FACTORS.

WE ALSO HAVE, UH, COAL AT FAYETTE.

WE HAVE URANIUM AT, AT, AT SOUTH TEXAS NUCLEAR PLANT.

UH, WE USE FUEL OIL TO START GENERATORS.

WE HAVE TO TRANSPORT THAT FUEL, UH, THROUGH PIPELINES OR BY RAIL CARS.

UM, WE HAVE CHANGES IN HEDGING AND THERE'S ALSO CHANGES IN LOAD.

SO THE AMOUNT OF, UM, KILOWATT HOURS CONSUMED BY OUR CUSTOMERS CHANGES THE COST AND IT'S VERY HARD TO SORT OF BREAK THAT OUT INTO SEPARATE DISCREET

[00:55:01]

BUCKETS, BUT WE KIND OF COMBINE THAT TOGETHER AND THAT ADDED A LITTLE OVER 42 MILLION.

AND SO ALL THOSE SLICES OF PIE TOTALED TO 288 MILLION, UM, THAT CAUSE THE INCREASE.

SO IT'S QUITE DYNAMIC, QUITE COMPLEX IN, IN THIS POWER SUPPLY PIECE.

BUT THAT'S THE BEST WAY THAT WE CAN SORT OF REPRESENT THAT.

UM, IN, IN THE BUCKETS THE NEXT QUESTION WE HAD, WHICH IS THE, UM, ERCOT RECEIVABLE THAT WE HAVE.

AND SO, UM, WE'RE GETTING A LITTLE BIT MORE, UM, ON THIS, UH, DURING OUR EXECUTIVE SESSION.

UM, BUT I TRIED TO EXPLAIN IT HERE.

AND SO WHAT HAPPENED WAS, UH, DURING WINTER STORM UY, UH, BRAZO CO-OP IS A GENERATION TRANSMISSION PROVIDER.

AND SO THEY PRODUCE POWER AND THEY SELL IT TO THEIR 16 MEMBER CO-OPS.

UH, THEY'RE BASED OUTTA WACO AND THOSE CO-OPS ARE MOSTLY IN NORTH CENTRAL TEXAS AREA.

UM, AND SO THEY PROVIDE THAT POWER TO THOSE CO-OPS ON LONG-TERM SUPPLY CONTRACTS.

SO THEY HAVE AN OBLIGATION TO PROVIDE THAT POWER.

AND DURING WARNER STORE, MURIE, THEIR GENERATION DID NOT PRODUCE, UH, IT WENT DOWN.

AND SO SINCE THEY HAD AN OBLIGATION TO PRODUCE POWER AND SELL IT TO THEIR MEMBERS, THEY HAD TO BUY WHAT WE CALL THE INDUSTRY AS REPLACEMENT POWER.

SO THEY WERE BUYING POWER ON THE MARKET AND YOU REMEMBER PRICES GOT UP TO $9,000, UH, MEGAWATT HOUR, THEY WERE SELLING IT OR GIVING IT TO THOSE, THOSE CO-OPS FOR THAT CONTRACT PRICE.

AND SO THAT MIGHT HAVE BEEN 35 OR $40 A MEGAWATT HOUR.

SO THEY WERE BUYING IT AT 9,000 THE MEGAWATT HOUR AND SELLING IT TO THEIR CO-OP MEMBERS FOR $40 MEGAWATT THEIR CONTRACT PRICE AND THE REST OF THAT WERE LOSSES THAT THEY WERE INCURRING AS A CO-OP, AND THAT LASTED FOR NEARLY A HUNDRED HOURS.

AND SO THEY RACKED UP, UM, ABOUT A ONE END OF THE DAY, ABOUT A 1.9 BILLION.

I, UM, BILL FROM ERCOT, UM, THAT THEY HAD TO PAY AND, UH, BRAZOS DID NOT HAVE THE CASH TO PAY THAT BILL.

AND SO THEY WERE FORCED TO DECLARE BANKRUPTCY IN IN MARCH.

AND AS A RESULT OF THAT BANKRUPTCY, ERCOT PUT THE NORMAL PROTOCOLS IN PLACE ON HOLD FOR THEM.

UM, AND SO WHAT THAT DOES IS, UM, EACH OF THE GENERATORS IN ERCOT, UH, WE SHARE THE RISK OF WHAT WE CALL SHORT PAYS.

AND SO THAT 1.9 BILLION IS A SHORT PAY.

AND SO ERCOT GOES TO ALL OF THE GENERATORS AND SAYS, UH, I OWE YOU SOME MONEY, BUT I'M NOT GONNA PAY YOU NOW.

UH, BECAUSE WE WERE SHORT PAID, WE WEREN'T PAID BY SOMEONE WHO IS AN OFFTAKER BRAS IN THIS CASE.

AND SO WE BOOKED THAT AS A RECEIVABLE AND OUR SHARE WAS APPROXIMATELY 48 MILLION.

UM, NORMALLY WHAT WOULD HAPPEN IS ERCOT WOULD COME BACK AND DO WHAT WE CALL AN UPLIFT, AND THAT'S TO ALL MARKET PARTICIPANTS.

SO THOSE ARE EVERYONE WHO TAKES POWER AS WELL AS PRODUCER'S POWER, AND WE ALL SHARE THE COST OF THAT SHORT PAY.

AND SINCE AUSTIN ENERGY IS BOTH A GENERATOR AS WELL AS A MARKET TO PARTICIPANT, WE HAVE BOTH A CREDIT AND A DEBIT IN THAT SITUATION.

SO OUR, OUR OUR, OUR CREDIT IS THE 48 MILLION AND OUR DEBIT OR THE UPLIFT IS THE 16 MILLION AND YOU NET THOSE DIFFERENCES AND THAT'S ABOUT THE, UM, 27 MILLION NET RECEIVABLE YOU'VE HEARD US TALK ABOUT.

SO THERE'S A LOT GOING ON THERE.

UM, THEN YOU ADD THAT TO THE UNDERCOVERED THAT WE EXPECT TO SEE IN SEPTEMBER, OCTOBER, AND THAT'S WHERE YOU GET THE TOTAL UNDERCOVERED AMOUNT OF 104 AND HOW THE EARTH CUT, UM, IN THE BRAS BANKRUPTCY COMES TO PLAY.

AND WE NOW HAVE A SETTLEMENT OFFERED TO CONSIDER UM, IN THAT BRAUS BANKRUPTCY THAT MIGHT CHANGE THE DYNAMIC OF THIS THAT WE'LL BE DISCUSSING THE EXECUTIVE SESSION WITH YOU.

SO I THINK THAT COVERED MOST OF THE, UH, QUESTIONS YOU HAD LAST, UH, WORK SESSION.

AND, UM, UH, THIS GONNA GET INTO SOME OF THE OPTIONS THAT WE DISCUSSED.

OH YEAH, JUST THE QUESTIONS HE SAID LAST, HE'S GONE THROUGH THE ANSWERS TO THE QUESTIONS LAST WEEK BEFORE HE STARTED.

THERE WERE QUESTIONS THAT WERE RAISED AND NOW I THINK YOU GONNA RESPOND TO THE QUESTIONS THAT WERE RAISED.

I, I'M GONNA, I CAN STOP HERE IF SOME OF THE THINGS I COVERED EARLIER QUESTIONS ABOUT BEFORE WE GET INTO THE OPTIONS, I, IF THAT'S EASIER FOR US TO, I THINK SO DIGEST AS WE GO ALONG.

I HAVE A COMPARISON OF, UH, THE OPTION THAT WE HAD, UH, PRESENTED, WHICH IS COLLECTED OVER 12 MONTHS VERSUS THE OPTION WHICH IS TO SPREAD OUT THAT 104 MILLION OVER A THREE YEAR PERIOD.

SO, SO WE'RE NOT GOING TO HAVE ANY QUESTIONS WITH RESPECT TO OPTIONS FOR WHAT WE'RE GOING TO PAY OR ANY OF THE KINDS OF ISSUES THAT ARE ON THIS SHEET, RIGHT? SO SOME OF THESE ARE COMING UP HERE IN THINGS THAT WE'RE GONNA LOOK AT BOTH IN 23 AS WELL AS LONGER TERM.

WE MIGHT CHANGE THE PSA.

AND HERE

[01:00:01]

OKAY? PLEASE GO THROUGH THIS.

THIS IS THE QUESTION THAT COUNCIL MEMBER FENT THIS ASKED INITIALLY.

MAYOR, WOULD IT BE, IS THERE A OPTION FOR TALKING ABOUT THE PRESENTA BEFORE WE DIVE INTO THE OPTIONS? I WONDER IF WE COULD ASK SOME CLARIFYING QUESTIONS ABOUT THE PRESENTATION.

YOU CAN.

SO LONG AS THEY DON'T GO TO THE QUESTIONS THAT WE ASKED BEFORE WE STARTED SPEAKING.

CUZ I WANT TO GET THE ANSWERS TO THOSE QUESTIONS TOO.

SOME OF THEM RELATE TO THE PRESENTA.

I MEAN, THERE'S SORT OF HOW WE GOT HERE.

WHICH IS THE PRESENTATION THAT YOU JUST DID AND SOME OF WHICH WE ASKED ABOUT HOW WE GOT HERE.

QUESTIONS I THINK WOULD BE GOOD.

UM, SO THE, LET'S SEE.

WANNA BE SURE I UNDERSTAND, OH NO, I KNOW WHAT IT IS ON PAGE SIX.

SLIDE SIX RATHER WHERE YOU HAVE, SO LET'S SEE, I'M NOT SURE IF IT'S SLIDE SIX OR SLIDE EIGHT IS THE BETTER ONE TO ANSWER THIS, BUT IN TERMS OF, WELL NOW THIS IS GETTING TO THE MAYOR SHEET, BUT I'M TRYING TO LOOK AT THIS CHART AND AS I UNDERSTOOD YOUR PRESENTATION, IT LOOKS LIKE THINGS WERE BASICALLY ON TRACK UNTIL YOU SAID MAY THE CONSUMPTION STARTED TO GO UP.

BUT IT PROBABLY BECAME REALLY EVIDENT BY JUNE THAT YOU WERE GONNA RUN OUT OF OVER COLLECTION DOLLARS TO DISTRIBUTE TO CUSTOMERS.

RIGHT? I I, SO YOU CAN SEE THERE THAT THE, THE GOLD BAR, HOW IT REALLY INCREASED IN MAY AND JUNE AND WE HAD INDICATIONS WE WERE GONNA HAVE A HOT DRY SUMMER, UM, AND PRICES WERE INCREASING.

UM, AND SO THAT GAVE US AN INDICATION THAT THAT TIME THAT WE WERE GOING TO EXTINGUISH THAT OVER COLLECTION AMOUNT SOONER, RIGHT.

RATHER THAN LATER AND THEN IT WENT TO UNDER COLLECTION.

SO YES.

SO TO ME, LOOKING AT THIS CHART BETWEEN THE CHART ON PAGE SIX AND THE CHART ON PAGE EIGHT, THAT LOOKS TO ME LIKE AN ARGUMENT FOR EVERY THREE MONTHS BECAUSE WITH THAT KIND OF VOLATILITY CHECKING IN EVEN AT SIX MONTHS WOULD, WOULD PROBABLY BE TOO LATE RIGHT? LAST YEAR THAT, THAT MIGHT HAVE BEEN A SOLUTION.

BUT, BUT THE QUESTION IS, WE SANG SO MUCH VOLATILITY IN BOTH IN VOLUME AND PRICE, HOW CAN WE MAKE SURE THAT WE CATCH THIS, UM, AS OPPOSED TO SAYING EVERY SIX MONTHS, CUZ THE PATTERN COULD BE VERY DIFFERENT NEXT YEAR.

AND SO I THINK ONE THING THAT WE WANT TO DO IS REPORT BACK TO YOU ON A MONTHLY BASIS OF WHAT WE'RE SEEING AND DETERMINE WHETHER WE NEED TO CHANGE THE POLICY OR THE TARIFF ABOUT WE GONNA CHANGE THAT.

SO I THINK THOSE ARE THINGS WE DO NEED TO LOOK AT.

I'VE GOT SOME RECOMMENDATIONS ON THAT.

I THINK THERE'S ALWAYS THESE UNINTENDED CONSEQUENCES.

WE NEED TO MAKE SURE THAT WE, UM, WE, UM, WE'RE ING AS A STABLE PRICE AS POSSIBLE FOR OUR CUSTOMERS.

UH, WE DON'T HAVE NEGATIVE IMPACT FOR OUR VULNERABLE CUSTOMERS AND THAT WE'RE NOT IMPACTING NEGATIVELY OUR, OUR BUSINESSES IN AUSTIN THAT ARE OUR, OUR LIVELIHOOD.

SO ALL THOSE THINGS HAVE TO BE CONSIDERED WHEN WE'RE CHANGING THESE RATES AND WE REALLY WANT TO BE VERY DELIBERATE IN IN HOW WE DO THAT.

AND PART OF THE QUESTION, DOES THE PRESENTATION THAT'S COMING FORWARD THAT YOU'RE ABOUT TO LAUNCH INTO, DOES IT HAVE RECOMMENDATIONS FOR HOW TO CHANGE THAT TARIFF? IT'S GOT RECOMMENDATIONS FOR HOW WE SHOULD LOOK AT, I DON'T HAVE ANSWERS RIGHT NOW.

I DON'T HAVE ALL THE DATA.

WE NEED TO LOOK AT THAT AND WE'RE GONNA WORK WITH THE EUC, WE'RE GONNA WORK WITH YOU, WE'RE GONNA WORK WITH OUR STAKEHOLDERS.

A LOT OF THINGS CAN GET, UH, FINALLY TUNED TO MAYBE MAKE A BETTER ADJUSTMENT AS OPPOSED TO SORT OF A BLUNT TOOL TO FIX IT.

IT SEEMS TO ME THOUGH THAT WE WOULD NOT WANNA, I MEAN I THINK ONE OF YOU'ALL ARTICULATED, MAYBE IT WAS YOU MAY, OR THAT THERE ARE SORT OF SHORT TERM, MAYBE SOME SHORT TERM ACTIONS AND THEN THERE'S A LONGER TERM LOOK AT HOW TO RESTRUCTURE IT.

WAS THAT YOU MAY PRETEND.

TO THE QUESTIONS THAT I ASKED.

UM, AND SO, YOU KNOW, IN TERMS OF THE SHORT TERM, WHICH I, I SEE A NEED FOR ON THURSDAY, UM, I'M, I'M LEANING TOWARD JUST BASED ON, AGAIN, THOSE TWO CHARTS ON, UH, ON PROVIDING A POLICY THAT ALLOWS YOU TO COME BACK TO COUNCIL WITH A PSA ADJUSTMENT, A POLICY THAT ALLOWS YOU TO ADJUST THE PSA EVERY THREE MONTHS IF NEED BE, JUST BASED ON, ON THIS LAST YEAR.

UM, DOES THAT SEEM ADVISABLE TO YOU? UM, I, ONE THING WE MIGHT RECOMMEND IS, LIKE I SAID, HOW THIS REALLY MATERIALIZES ON A CUSTOMER'S BILL.

AND SO PERHAPS IF OUR INTENT IS TO STABILIZE A CUSTOMER'S BILL IS WE LOOK AT HOW THE CHANGES IMPACT THAT BILL.

AND SO RIGHT NOW IT'S 10% OF POWER SUPPLY COSTS, BUT MAYBE WE TRIGGER IF IT'S GONNA CHANGE THE CUSTOMER'S BILL MORE THAN, YOU KNOW, PLUS OR MINUS 5% THAT MAYBE WE HAVE ADMINISTRATIVE AND PRIVILEGE TO CHANGE THAT ON THE CUSTOMER'S BILL SO WE DON'T AMASS SUCH A HUGE OVER UNDER COLLECTION AND IT KEEPS UP WITH THE MARKET PRICES.

SO THESE ARE THE QUESTION, THESE ARE THE QUESTIONS THAT I THINK GO

[01:05:01]

SO THEY, SO THE QUESTIONS THAT, THAT I INITIALLY ASKED WAS TO HAVE TO HAVE BROSKI SPEAK TO CERTAINLY, I I AGREE WE SHOULD HAVE MORE FREE, I JUST DON'T KNOW WHAT THE TRIGGER IS WE SHOULD BE LOOKING AT OR WHAT ELEMENTS.

ONE IS THE, THE BILL, I'D LIKE TO UNDERSTAND THAT BETTER.

ONE IS LOOKING AT RESERVE AMOUNTS.

I MEAN, MAYBE WHEN OUR RESERVE AMOUNTS DECREASED BY A CERTAIN AMOUNT, THERE SHOULD BE A TRIGGER THERE.

THERE'S PROBABLY A HALF DOZEN DIFFERENT KINDS OF TRIGGERS THAT WE COULD HAVE.

MAYBE IT'S MULTIPLE TRIGGERS THAT WE SHOULD BE TAKING A LOOK AT.

UH, SO THAT IF ANY ONE OF THESE FIVE FACTORS HAPPEN, I LIKE THE IDEA OF REPORTING BACK TO COUNCIL ON A MONTHLY BASIS SO THAT WE'RE REAL TIME PARTICIPATING IN THESE THINGS.

UM, BUT IT'S, IT'S, I WOULD LIKE YOU TO, TO TO GO THROUGH THE A, B AND, AND C POINTS AND TALK ABOUT, AND IF YOU HAVE PRESENTATION MATERIALS ON THEM, I DON'T KNOW TO, TO BE ABLE TO, TO PRESENT THEM.

BUT I WOULD LIKE TO HEAR YOU TALK ABOUT THE FIRST ONE WAS, WAS, WAS, WAS TRIGGERS.

THE SECOND ONE WAS TIERING.

WE COULD HOLD ON THAT TILL WE GET TO TIERING.

THE THIRD ONE WAS RESERVE POLICIES AND SPEAK TO THAT ONLY IN SO FAR AS IT RELATES TO TO, TO A SO BEFORE I'M READY TO START GOING TO SOLUTIONS, YET THERE'S STILL MORE INSIGHT AND BACKGROUND AND ANSWER TO QUESTIONS THAT I'D LIKE TO HEAR TO THE QUESTIONS AROUND.

I'M JUST TRYING TO, I'M TRYING TO PUT THESE, I WILL HOLD OFF THEN ON, ON THE REST OF THOSE QUESTIONS.

I HAVE A COUPLE OTHERS ABOUT THE PRESENTATION.

WHAT I'M TRYING TO DO IS PUT, PUT SOME OF THESE ISSUES ALONGSIDE THE DATA, WHICH IS THE INFORMATION THAT HE JUST PRESENTED.

IF I COULD JUST ASK A COUPLE MORE QUESTIONS.

UM, I WANNA NOTE THAT ON SEVEN, ON SLIDE SEVEN, BASED ON YOUR PRESENTATION AND THIS DATA, IT LOOKS LIKE OUR INVESTMENTS IN GREEN ENERGY AND OUR CONTRACTS WITH UM, GREEN ENERGY PRODUCERS, AS YOU POINTED OUT, SAVED, SAVED OUR CUSTOMERS MONEY.

I THINK THAT'S A REALLY IMPORTANT, YOU MENTIONED IT, BUT I WANTED, IT'S IMPORTANT ENOUGH THAT I JUST WANTED TO UNDERSCORE THAT THERE WAS A REAL BENEFIT TO CUSTOMERS, A REAL FINANCIAL BENEFIT OF THE INVESTMENTS OF THE COMMITMENT THAT THIS COMMUNITY HAS MADE TO CLEAN ENERGY AND THE INVESTMENTS THAT AUSTIN ENERGY HAS MADE TO EXECUTE ON THOSE.

AGREE, WIND AND SUN ARE FREE, SO THE FUEL COSTS IS FREE AND YOU'RE SEEING THE BENEFITS ARE.

YEP.

UM, AND THEN MY LAST QUESTION ON THIS PIECE IS MESSAGING TO CUSTOMERS.

SO YOU POINTED OUT ON ONE OF THE SLIDES 11, I THINK THAT PART OF THAT THE BENEFIT WAS GOING TO GO, UH, THE OVER COLLECTION CREDIT THAT WAS GOING BACK TO CUSTOMERS, YOU KNOW, NEEDED TO END WHEN WE HIT THAT, THAT BASE POINT.

I'M NOT SURE HOW WELL AUSTIN ENERGY MESSAGED THAT, YOU KNOW, RIGHT NOW YOU'RE GETTING A CREDIT BECAUSE OF SOME OF THE MONEY THAT, BECAUSE WE OVER COLLECTED DURING THIS PERIOD, UM, THAT INCLUDED WINTER STORM YURY WAS, WERE THERE ANY NOTATIONS ON THE BILL? AND I HAVEN'T HAD A, A CHANCE TO GO BACK TO MINE TO SEE WHETHER IT WAS THE CASE WERE CUSTOMERS, DID CUSTOMERS KNOW THAT, THAT THIS WAS KIND OF A TEMPORARY BENEFIT THAT THEIR, THAT THEIR RATES WERE TEMPORARILY LOW BECAUSE WE WERE PAYING THEM BACK? AND I, AND I ASK THAT AND JUST ALSO IF IT'S, IF THAT'S NOT THE CASE, YOU KNOW, HOW CAN WE MESSAGE ABOUT THAT PIECE OF, OF IT GOING FORWARD? I THINK ALSO NEEDS TO BE PART OF OUR CONSIDERATION.

I I DON'T BELIEVE THERE'S ANYTHING ON YOUR BILL THAT WOULD INDICATE THAT.

UM, BUT THAT IS SOMETHING WE CAN CONSIDER, UM, AS WE GIVE THESE, THESE CREDITS.

UH, THIS WAS REALLY ABNORMAL.

WE, WE NORMALLY DON'T HAVE SUCH LARGE OVER AND UNDER COLLECTIONS AND SO IT WAS AN ABNORMAL YEAR BECAUSE WINTER STORM MUR AND AS A RESULT OF THAT IT'S, IT'S, WE HAD ANOTHER ABNORMAL YEAR CUZ OF THE MARKET CHANGES.

SO THAT'S CERTAINLY SOMETHING WE CAN CONSIDER.

UM, WHEN WE SET THE PSA, WE DIDN'T MAKE IT, BUT I, I FREAK, YOU KNOW, PEOPLE HAVE A LOT OF THINGS GOING ON IN OUR LIVES ARE NOT ALWAYS PAYING ATTENTION TO WHAT WHAT WE'RE SAYING.

AND SO WE CAN MAYBE MAKE IT MORE OBVIOUS.

COUNCIL MEMBER TOGA'S QUESTION ABOUT WHEN THIS HAPPENED.

IF THEY'RE GETTING A BENEFIT, A TEMPORARY BENEFIT THAT'S GONNA GO AWAY.

JUST MESSAGING ABOUT THAT MIGHT BE, MIGHT BE HELPFUL.

THERE'S A BUNCH OF QUESTIONS YOU WERE ASKED BEFORE YOU STARTED SPEAKING AND BEFORE WE LOSE TRACK OF THOSE, I WANT TO HEAR ANSWERS TO THOSE QUESTIONS.

AND THEN YOU HAVE ANOTHER THREE PAGES OF YOUR PRESENTATION WITH RECOMMENDATIONS THAT I THINK RESPOND TO SOME OF THE QUESTIONS AS I LOOK AT IT SINCE I'VE JUST GOTTEN IT THAT RESPOND TO SOME OF THE QUESTIONS THAT WE RAISED.

SO I'D LIKE YOU TO GO THROUGH THE FOLLOW LAST THREE PAGES WHERE YOU I THINK HAVE ANTICIPATED SOME OF THE QUESTIONS THAT WERE ALREADY ASKED BEFORE WE START ASKING LOTS AND MORE QUESTIONS.

UM, HOPEFUL THAT WE CAN GET ANSWERS TO SOME OF THE QUESTIONS THAT WERE RAISED EARLIER AND A BETTER UNDERSTANDING TO WHAT THE OPTIONS WERE ON THURSDAY.

UM, UH, SO THAT WE UNDERSTAND WHAT IT IS THAT WE'RE VOTING ON, I THINK WOULD BE REALLY, UH, HELPFUL.

AND I THINK THAT MIGHT BE THE NEXT PAGE THAT YOU, THAT YOU ARE ADDRESSING FOR US.

MAYOR PROAM, UM, I DON'T HAVE A QUESTION.

I WANTED TO POINT SOMETHING OUT THAT I THINK HELPS WITH UNDERSTANDING WITH

[01:10:01]

UM, THE SLIDE THAT'S PROVIDED TODAY ON SLIDE SIX ADDS DATA FOR JULY AND AUGUST THAT WE DID NOT HAVE AT THE AUGUST MEETING BECAUSE YOU HAVE A TWO MONTH LAG IN GETTING, GETTING THE PSA.

SO, UM, IF YOU'RE TRYING TO UNDERSTAND THAT AND WHAT HAPPENED AND, AND WHAT TRIGGERED WHEN WE DID NOT HAVE JULY AND AUGUST AND EVEN AT THIS POINT WE ARE GUESSING WHAT SEPTEMBER AND OCTOBER ARE IN TERMS OF WHERE THEY'RE, WHERE THEY'RE COMING IN.

UM, AND I JUST THINK THAT'S IMPORTANT BECAUSE THEY'RE THE BIG JUMPS AND WE DON'T ACTUALLY HAVE THAT, WE DIDN'T HAVE THAT DATA IN AUGUST AND WHEN THEY WERE TRYING TO COME TO THEIR 10%, THEY DIDN'T HAVE THAT UNTIL THEY STARTED TO SEE THE DATA COMING IN.

MR. BAR GAVE YOU, GO AHEAD AND PROCEED.

DO WE GET SOME ANSWERS? ONE LAST SUPER, SUPER QUICK QUESTION.

PAGE FIVE.

WHICH OF THESE ARE, UM, MUNICIPALLY OWNED UTILITIES? AND THESE ARE SOME PRETTY MAJOR, I MEAN, SOME OF THEM GOT SOME REALLY MAJOR DOWNGRADES.

UM, NOT LIKE LITTLE SLIPPAGES AND IF YOU WANNA GET BACK TO US ON THAT, I WOULD, I'D JUST BE INTERESTED TO SEE, YEAH, I'LL BACK TO YOU HOW WE'RE PERFORMING COMPARED TO OTHER, I KNOW ALL OF THEM, BUT I I CAN, I CAN GIVE YOU AN ITEMIZED.

THAT'D GREAT.

LET DO YOU TO MOVE HERE.

HAPPEN IN THE FOLLOWING NOVEMBER IS, UM, IF ALL, IF NOTHING ELSE CHANGES, WE WOULD'VE COLLECTED THAT 104 MILLION FROM OUR CUSTOMERS AND THAT THE RATES THEN COME DOWN SO THAT POWER SUPPLY WOULD COME DOWN, RIGHT? CAUSE WE, WE'VE COLLECTED THAT.

LET'S SEE.

SO AT OUR LAST MEETING, UM, WE HAD, UM, NOT QUANTIFIED, BUT WE LAID OUT THREE OPTIONS THAT WE COULD CONSIDER.

SO THE FIRST ONE IS WHAT WE CALL OPTION ONE OR AS PROPOSED, AND THAT'S AS THE TARIFF IS CURRENTLY DRAFTED, WHICH SAYS WE HAVE AN OVER UNDER COLLECTION.

WE WILL COLLECT THAT OVER THE FOLLOWING 12 MONTHS.

UM, WE HAD OPTION TWO, WHICH WAS, UM, COLLECTING THAT OVER THREE YEARS.

AND THAT IS NOT CONSISTENT WITH THE PSA TARIFF, BUT CONSISTENT WITH HOW WE HANDLE SOME OF THE OTHER PASS THROUGHS, THERE'S AN ACCOUNTING RULE THAT SAYS WE HAVE TO, YOU KNOW, ENSURE THAT WE COVER THOSE COSTS OVER A REASONABLE PERIOD.

AND WE'VE ALWAYS INTERPRETED THAT AS THREE YEARS.

WE DO THAT WITH OUR REGULATORY OR CBC PASS THROUGHS, BUT THE PSA IS ALWAYS 12 MONTHS.

AND SO WE FEEL COMFORTABLE OFFERING THAT AS AN OPTION THAT WE THINK IS, IS VIABLE, UM, THE CONSEQUENCES IT TAKES LONGER FOR US TO RECOVER THAT CASH THAT WE'VE ALREADY EXPENDED FROM OUR CUSTOMERS.

SO THAT'S A LIQUIDITY ISSUE FOR US AND WE WANNA MAKE SURE THAT WE HAVE ENOUGH CASH ON HAND TO WHETHER THE NEXT EMERGENCY THAT MIGHT COME UP.

AND SO THAT'S A, A CONSIDERATION IN IN CHOOSING THAT.

UH, THE THIRD OPTION, UH, WHICH WAS TO, UM, NOT COLLECT 104.

UM, AND I I DIDN'T HAVE AN ANSWER FOR YOU ABOUT, WELL I'M GONNA DO, OR AM I GONNA GET $104 MILLION? I I DON'T HAVE AN ANSWER FOR YOU.

UM, UM, BUT CERTAINLY IF, IF WE WE DON'T INTEND TO COLLECT THAT, THEN WE WOULD HAVE TO WRITE THAT OFF, UM, ON OUR FINANCIALS.

UM, AND SO IT WASN'T A VERY VIABLE OPTION.

WE, WE COULDN'T, UM, WE DON'T HAVE ENOUGH CASH TO ABSORB $104 MILLION REDUCTION IN ONE YEAR.

SO IT WASN'T A VERY VIABLE OPTION UNLESS SOMEONE WAS WILLING TO WRITE US A CHECK FOR $104 MILLION.

BUT I HAVEN'T FOUND ANYONE YET.

UM, SO WITH THAT, IT SEEMED LIKE THE TWO MAIN OPTIONS WERE OPTION ONE, UH, IS CURRENTLY DRAFTING A TARIFF OR OPTION TWO TO SPREAD IT OUT OVER THREE YEARS AND WHAT WOULD THAT LOOK LIKE, UH, FOR CUSTOMERS.

AND SO THE NEXT SERIES OF CHARTS KIND OF WALKS YOU THROUGH WHAT THOSE IMPACTS ARE.

UM, SO THIS CHART HERE SHOWS, UM, OUR, UH, CURRENT BILL WITH CURRENT BASE RATES AND, AND, AND PSA.

SO, UM, SITTING TODAY A TYPICAL CUSTOMER USING 860 KILOWATT HOURS WOULD HAVE A MONTHLY BILL OF ABOUT $84 AND 50 CENTS.

SO THIS IS INSIDE CITY OF AUSTIN NON CAP CUSTOMER.

UM, DO WE NEED TO CHANGE THE SLIDE? YOU SHOULD BE SEEING A SLIDE WITH SIX BARS WITH A GRAY BAR ON THE LEFT SIDE.

OKAY, THANKS.

UM, SO THEN IF WE FAST FORWARD TO JANUARY, 2023, AND THE REASON WHY I PICKED THAT DATE IS WE'RE ASSUMING THAT THE BASE RATES AS WE PROPOSED ARE ADOPTED AND THE PSA AS WE PROPOSED IS ADOPTED.

SO, UH, THE BAR ON THE LEFT, UM, IS UM, IF WE COLLECTED OVER 12 MONTHS AND THE BAR ON THE RIGHT, THAT YELLOW BAR IS, IF WE SPREAD IT OUT OVER THREE YEARS.

SO YOU CAN SEE IF WE DO IT IN A ONE YEAR PERIOD THAT CUSTOMER'S BILL GOES TO $119 AND 7 CENTS A MONTH.

AND YOU CAN SEE THAT THE BLUE PART IS HOW MUCH ADD IS ADDITIONAL PSA.

THE, THE, THE BLACK SECTION THERE IS HOW MUCH IS THE BASE RATES AND THE REGULATORY IS THE SMALL GREEN PART.

SO YOU CAN SORT OF SEE IN, IN TERMS OF SCALE HOW MUCH IT GOES UP AS A RESULT.

UM, AND THEN WHAT WOULD

[01:15:01]

SO IT WOULD GET REDUCED TO $112 IN 1 CENT AND THEN, UH, NOTHING ELSE CHANGED.

IT WOULD BE THE SAME THING IN, IN 24.

IF WE SPREAD THAT OUT OVER THREE YEARS, UM, THAT CUSTOMER'S BILL WOULD GET REDUCED BY ABOUT $5.

SO IT GOES FROM 119 TO 114.

UM, AND THEN ALL ELSE BE, UH, STAYING THE SAME THE FOLLOWING YEAR.

THERE'S NO CHANGE CUZ WE'RE COLLECTING OUT OVER THREE YEARS.

SO AGAIN, IT'S 114 THE SECOND YEAR AND 114 TO THIRD YEAR.

AND SO THAT SPREADS OUT THAT $104 MILLION EACH YEAR.

UM, WE'RE ABOUT, UM, $5 PER MONTH ON THE CUSTOMER'S BILL.

THE REST OF THOSE COSTS THAT ARE BAKED INTO THE PSA, THOSE ARE THE ACTUAL COSTS.

A RESULT OF GAS AND CONGESTION.

ALL JUST ELEMENT ELEMENT.

CAUSE THAT'S, THAT'S WHAT'S GONNA COST US, WE EXPECT TO ACTUALLY PROVIDE THAT POWER TO OUR CUSTOMERS.

SO THAT'S ON A TYPICAL RESIDENTIAL BILL.

AND WE OFTEN SAY TYPICAL, UH, AND WE USE EIGHT 60 AS A BENCHMARK BECAUSE, UH, WE WANNA BE CONSISTENT ON HOW WE SHOW THESE FOR AUSTIN ENERGY CUSTOMERS YEAR OVER YEAR.

THEIR ACTUAL CONSUMPTION CHANGES ACTUALLY A LOT, UH, YEAR OVER YEAR.

BUT THE VAST MAJORITY OF OUR CUSTOMERS ARE IN TIERS ONE AND TWO.

SO THEY'RE NOT GONNA SEE A, UM, THIS $20 INCREASE FROM THE PSA.

THEY'LL SEE SOMETHING MUCH LESS THAN THAT BECAUSE THEY USE LESS ENERGY.

THEY'RE USING THREE OR 400 K K H, SO THEIR PSA CHANGE MIGHT BE $10.

AND IF YOU LIVE IN A LARGE HOME, SAY IN WEST AUSTIN WITH A POOL AND A WINE COOLER AND HOT TUB AND ALL THAT STUFF, YOU MIGHT SEE MUCH MORE THAN THE 20 CUZ YOU'RE GONNA USE A LOT MORE ENERGY.

SO IT'S, YOU KNOW, WHEN WE SAY TYPICAL, THAT'S WHY WE DON'T SAY AVERAGE.

UH, THE AVERAGE CUSTOMER IS GONNA SEE LESS THAN A $20 BILL INCREASE AS A RESULT OF THIS IN THE COURSE.

UM, 66% OF ALL OF OUR ENERGY IS USED BY OUR COMMERCIAL AND INDUSTRIAL CUSTOMERS.

SO THEY, UM, ARE IMPACTED BY CHANGES IN THE PSA, UM, AS A PERCENTAGE MUCH HIGHER THAN OUR RESIDENTIAL CUSTOMERS.

UM, AND SO THIS CHART HERE IS, UM, INTENDED TO SHOW YOU, UM, THE VARIOUS OPTIONS ON THOSE TYPES OF CUSTOMERS.

SO I HAVE SOME LARGE COMMERCIAL INDUSTRIAL CUSTOMERS AND THEN SOME SMALLER CUSTOMERS, UH, BUSINESS CUSTOMERS AND THESE ARE BASED UPON IN ACTUAL CUSTOMER, I USE THEIR BUILDINGS FROM EIGHT OCTOBER 21 TO SEPTEMBER 22 FOR ONE YEAR PERIOD.

AND THEN I APPLIED THOSE RATES TO THOSE CUSTOMERS.

UM, SO, UH, PR TWO MEANS PRIMARY TWO, THEY OWN THEIR TRANSFORMATION.

THESE ARE A LARGER CUSTOMER, SOPHISTICATED CUSTOMERS.

UM, IN THIS CASE, UH, IT'S A HOSPITAL.

UM, AND THEIR PREVIOUS BILL FOR THAT PERIOD WAS ABOUT ONE POINT, UH, $9 MILLION.

UH, BECAUSE THEY ARE ENERGY INTENSIVE.

THINK ABOUT HOSPITAL, THEY'RE GOING 24 HOURS A DAY, SEVEN DAYS A WEEK.

UH, THEY'RE ALWAYS USING ENERGY.

SO THEY, THEY'RE ENERGY INTENSIVE.

UM, THEY'RE GONNA GET AN INCREASE OF ABOUT $568,000 IN POWER SUPPLY COSTS AND REGULATORY COSTS OF ABOUT 41,000 FOR A TOTAL ESTIMATED BILLING FOR THE NEXT YEAR OF, UH, $2.5 MILLION OR ABOUT A 32.8% INCREASE, UH, BECAUSE THEY'RE VERY ENERGY INTENSIVE.

UH, THE NEXT IS WHAT WE CALL SECONDARY THREE.

THIS IS A CUSTOMER THAT DOESN'T OWN YOUR TRANSFORMATION, BUT THEY'RE USING A LOT OF ENERGY.

THEY'RE MORE THAN UM, UH, BELIEVE UP TO 300 KWH OR KW, EXCUSE ME.

UM, SO THEY'RE A LARGE CUSTOMER AND THIS ONE IS A COMMERCIAL BANK.

AND IN THAT CASE, UM, THEIR BILL WAS ABOUT 746,000 LAST YEAR.

THEY WOULD EXPECT TO SEE AN INCREASE, UH, UNDER OPPOSITE OP OPTION ONE OF $167,000, UH, REGULATORY ABOUT 17,000 FOR A TOTAL BILL OF 930 OR ABOUT A 25% INCREASE.

AND AGAIN, THEY'RE A LITTLE LESS ENERGY INTENSIVE, SO THE PERCENTAGE IS A LITTLE SMALLER.

IF WE GO WITH OPTION TWO, THE THREE YEAR GRADUAL, YOU CAN SEE HOW THOSE BILLS DECREASE.

SO THAT HOSPITAL WOULD STILL GET A SIGNIFICANT INCREASE CUZ OF THE PRICE OF ENERGY, BUT WE COULD REDUCE THAT DOWN TO JUST BELOW 25% INCREASE.

SO IT'S, UH, ABOUT, IS THAT ABOUT A 8%, UH, BENEFIT TO THEIR BILL.

AND IF YOU'RE THAT BANK, THEY'RE GONNA GET A LITTLE BIT SMALLER AS A PERCENTAGE.

UM, AND SO THAT'S ABOUT A, UM, 6% REDUCTION IN OUR TOTAL BILLS A RESULT OF SPREADING THAT OVER THREE YEARS.

[01:20:03]

AND FOR OUR SMALLER BUSINESSES, UM, WE HAVE A, UH, SECONDARY TWO CUSTOMERS.

SO THIS IS BETWEEN 10, UH, KILOWATT AND 300.

THIS IS A LARGE RETAILER, UM, RETAIL STORE.

UM, THEY UNDER OPTION ONE BE WITH 53,000 WITH ABOUT ALMOST A $13,000 INCREASE IN THEIR POWER COST, $1,100 INCREASE IN REGULATORY.

UM, SO THAT'S ABOUT A 26% INCREASE.

UM, SECONDARY TWO, UM, A LITTLE LESS ENERGY INTENSIVE, UH, IS A FAST FOOD RESTAURANT.

UM, SO THEIRS WOULD GO FROM ABOUT 11,000 TO ABOUT ALMOST 14,000 OR A 24% INCREASE.

AND THE SECONDARY ONE, IT'S A RETAIL TECHNOLOGY.

THINK OF LIKE A CELL PHONE STORE IN A STRIP MALL.

UM, THAT'S ABOUT TWO POINT, UH, OR 2,700 TO ABOUT 3,400 OR JUST, UH, JUST OVER A 23% INCREASE.

IF WE GO WITH OPTION TWO, UM, THEY GET LESS OF A PERCENTAGE OF A DECREASE BECAUSE THEY'RE LESS ENERGY INTENSIVE.

SO THAT LARGE RETAILER WOULD GO TO ABOUT 20%.

UH, THE FAST FOOD RESTAURANT WOULD SEE ABOUT AN 18% INCREASE AND THAT RETAILER WOULD SEE ABOUT AN 18% INCREASE.

SO THAT'S HOW IT SHAKES OUT BETWEEN THE TWO OPTIONS FOR BOTH RESIDENTIAL AND OUR, UH, COMMERCIAL CUSTOMERS.

AND SO, UH, THOSE ARE THE, THE OPTIONS THAT, UH, WE ARE BRINGING TO YOU, UH, TO CONSIDER.

UM, ARE THERE ANY QUESTIONS ON THAT BEFORE I GO INTO, UH, SOME OF OUR RECOMMENDATIONS AND, UH, FOR THE 23 PSA AND FUTURE PSAS? SO THE BOTTOM LINE IS WE GO TO OPTION TWO, IT DECREASES THE AMOUNT THAT THE PER, THAT THE ENTITY PAYS IN YEAR ONE.

UH, BUT IT COULD RESULT IN A, IN A SLIGHT, UM, UH, INCREASE OR GREATER AMOUNT THAT THEY PAY IN YEAR TWO AND THREE.

BUT AT AT LEAST IT'S LEVEL AND FLAT FOR THE THREE YEAR PERIOD OF TIME.

EVERYTHING ELSE REMAINING THE SAME.

CORRECT.

IT ALSO MAY DOESN'T BUILD IN ANY KIND OF RESILIENCE SHOULD THE COST SPIKE AGAIN.

I MEAN, WE'RE GAMBLING THAT THAT THINGS RETURN TO NORMAL ACROSS THE BOARD.

UM, SO I THINK THIS IS IMPORTANT ENOUGH.

LET'S HAVE A CONVERSATION NOW JUST ABOUT THE OPTIONS.

UM, AND THEN WE'LL GET INTO THE OTHER THINGS.

TRIGGERS, SIGNALS.

HOW DO WE AVOID THIS IN A SECOND? BUT LET'S HAVE A CONVERSATION IF WE WANT IT ON THE ACTION ON THURSDAY AND THE OPTIONS THAT ARE BE IN FRONT OF US.

MAYOR PROTE, UM, IT LOOKS LIKE THERE MAY BE MORE SLIDES ON THIS, BUT, UM, I WANTED TO JUST UNDERSCORE WHAT COUNCIL MEMBER POOL JUST SAID THAT THESE NUMBERS ARE PRESENTED TO US WITHOUT ANY ASSUMED FURTHER SPIKES IN GAS PRICES OR ENERGY COSTS TO US.

AND SO WE SMOOTH IT OUT, BUT THEN WE HAVE NO CUSHION.

WE, WE DON'T HAVE ANY, WE, WE HAVEN'T TAKEN INTO CONSIDERATION THE FACT THAT COSTS MAY VERY WELL GO UP FURTHER.

UM, SO WE NEED TO BE CAREFUL ABOUT WHAT WE'RE PROMISING FOLKS IS GONNA HAPPEN IN THEIR, IN THEIR BILLS.

UM, AND I IT JUST LOOKS LIKE THEY HAVE RECOMMEND, I MEAN, IF WE'RE GONNA TALK ABOUT WHICH OPTION, IT LOOKS LIKE THEY HAVE MORE, DO YOU HAVE MORE SLIDES WITH RESPECT TO THE OPTIONS A AND B? RIGHT.

SO WE, WE'VE LOOKED AT THIS AND YOU ASKED ME TO MAKE A RECOMMENDATION AND I'M PREPARED TO MAKE, MAKE THAT RECOMMENDATION.

DON'T JUST GO AHEAD AND MAKE THAT MORE WITH THE QUALIFICATIONS.

IF WE ACCEPT THAT, THAT THAT OPTION, UM, WE CAN TALK A LITTLE BIT ABOUT THAT.

WHY DON'T YOU MAKE YOUR RECOMMENDATION, EXPLAIN WAY.

BECAUSE THE RATE IS SET BELOW WHERE IT NEEDS TO BE, WE INCUR ADDITIONAL UNDER RECOVERIES, UH, BETWEEN 750,000 TO $1 MILLION A DAY.

SO, UM, SO FOR THE 2023 POWER SUPPLY ADJUSTMENT OPTION WHERE OPTION TWO, UM, WE BELIEVE OPTION UH, TWO, WHICH IS A THREE YEAR GRADUAL, SOMETHING THAT WE CAN DO, PROVIDES A SMALL AMOUNT OF RELIEF FOR OUR CUSTOMERS, UH, NEXT YEAR.

ALTHOUGH WE RECOGNIZE THE ECONOMIC BURDEN, UH, THE ENERGY COSTS HAVE ON CUSTOMERS, BUT, UM, IF WE NEGLECT THAT OPTION, WE BELIEVE, UM, THAT, UM, IT IS VIABLE.

UM, AND THAT WE WOULD CHANGE THAT ON NOVEMBER 1ST.

UM, AND THAT WOULD ALLOW US TO RECOVER 30, ALMOST 35 MILLION PER YEAR THAT HAS SOME MEASURE OF IMPROVED LIQUIDITY FOR US.

UM, IF WE MARRY THAT WITH SOME BASE RATE INCREASE, UM, AND THEN ALLOWS US TO COLLECT THAT OVER THREE YEARS, UM, AS OPPOSED TO ONE YEAR OR THE RATE SHOCK.

UM, I DO CAUTION AND WHY I'M CURING YOU TO APPROVE THIS ON THURSDAY IS FOR EVERY DAY AFTER NOVEMBER 1ST THAT WE DELAY THIS IMPLEMENTATION

[01:25:01]

UM, AND SO THAT THAT UNDERCOVERED AMOUNT GETS BIGGER AND THE AMOUNT OF MONEY WE NEED TO COLLECT FROM OUR CUSTOMERS OVER THE NEXT PERIOD GETS LARGER SO THAT RATE GETS HIGHER.

SO DELAYING IT, UM, IS, IS NOT A GOOD THING TO DO.

BUT WE THINK IF YOU GO OVER THE THREE YEARS, IF WE WORK WITH YOU CAREFULLY, UM, IF YOU'LL, UM, UH, ENTERTAIN A, A CONVERSATION EACH MONTH WITH US ABOUT WHAT WE'RE SEEING IN POWER SUPPLY, HOW OUR, OUR GAS PRICES ARE GOING, WHAT'S GOING ON, CAN WE MAKE MIDSTREAM ADJUSTMENTS? THAT'S SOMETHING WE BELIEVE, UH, WE, WE CAN OFFER TO PROVIDE SOME MEASURE OF RELIEF FOR OUR CUSTOMERS.

MAYOR, IF I COULD AT, AT THIS POINT, UM, I JUST WANTED, UH, YOU KNOW, OBVIOUSLY WE'RE NOT DONE WITH THE CONVERSATION, BUT I, AT THIS JUNCTURE I WANTED TO THANK US AND ENERGY FOR, FOR BRINGING THIS PARTICULAR RECOMMENDATION.

I, I CONTINUE TO BE CONCERNED ABOUT THE 30 MILLION, UM, A MONTH INCREASE IN, UH, IN THE LOSS AND, UH, WORRY AS I MENTIONED, UH, A MINUTE AGO ABOUT, UM, SPIKING NEXT SUMMER OR IF WE HAVE ANOTHER, UH, REALLY COLD WINTER.

UM, I, I HAVE THE RESILIENCE OF OUR, UM, OUR PROVISION TOP OF MIND.

IT OCCURS TO ME THAT WE MIGHT KICK AROUND THE THOUGHT OF TRYING TO COLLECT A LITTLE BIT MORE IN ONE OF THESE THREE YEARS AND THEN MAYBE LOWER AMOUNTS, MAYBE A HIGHER AMOUNT IN YEAR ONE OF SLIGHTLY LOWER IN YEAR TWO AND A LOWER IN YEAR THREE, SOMETHING LIKE THAT, RATHER THAN THREE EVEN AMOUNTS.

UM, BUT I TOSS THAT OUT THERE FOR THE BENEFIT OF, OF MY COLLEAGUES ON THE COUNCIL JUST TO KIND OF BE THINKING ABOUT, UM, CAUSE WE ARE, WE ARE PREDICTING WHAT THE FUTURE IS GONNA BE LIKE AND THAT'S ALWAYS A PRETTY HAZY HAZY PICTURE.

THANK YOU KEN.

PAUL EZ THANK YOU.

THANK YOU FOR INFORMATION.

I MINDLY I'M A LITTLE UNDERWHELMED WITH THE OPTIONS LAID OUT HERE.

THE SECOND OPTION STILL HAS US DOING, AND CORRECT ME IF I'M WRONG, BUT THE SECOND OPTION STILL HAS AN INCREASE OF $20 FOR PSA AND THEN THE BASE RATE.

SO IT'S BASICALLY WE'RE STILL GOING THROUGH WITH THE DOUBLE IMPACT OF THE RATE SHOCK ON YEAR ONE, BUT THEN THE GRADUAL IS JUST THAT IT'S LESS INCREASE OR GOES DOWN $5 A YEAR.

TWO.

AND WHAT MY INTENTION HERE IS CAN WE DO THE GRADUAL WHERE IT'S A STEP LADDER OF DOING A SMALLER, NOT $20, SOMETHING MUCH SMALLER AND THEN INCREASE YEAR TWO, YEAR THREE.

SO TO REALLY TEMPER THE SHOT, BUT AM I READING THIS CORRECTLY THAT THIS STILL HAS US GOING NEXT YEAR, THE FULL $20 PSA INCREASE OR HOW? NO, SO, UM, IT GOES FROM ABOUT, UM, IT'S ABOUT A $5 DECREASE FROM THE BILL, UM, ON THE PSA.

SO THAT DIFFERENCE BETWEEN THESE, UM, ON CHART 14, UM, THAT DIFFERENCE BETWEEN, UM, LET ME PULL THAT UP FOR YOU.

1 19 0 7 TO 1 14 19 0 7 AND THE 1 14 37, THAT'S ALL THAT ASSOCIATED WITH THE POWER SUPPLY ADJUSTMENT.

UM, SO THE ONLY THING WE'RE CHANGING THE AIR IS THE POWER SUPPLY ADJUSTMENT, RIGHT? SO THAT'S ALL ATTRIBUTED.

IF WE WERE TOTALLY IGNORE THE $104 MILLION THAT WE NEED TO COLLECT AN UNDER RECOVERY, THE RATE CAN ONLY GO TO 1 12 0 1.

SO IF WE IGNORED THAT AMOUNT, RIGHT, SO WE'RE SPREADING THAT 1 0 4, UH, OVER THREE YEARS, THAT DROPS IT FROM ONE 19 TO ONE 14.

IF WE JUST IGNORE THE 1 0 4 AND SAY WE'RE GONNA WRITE IT OFF AND NOT COLLECT IT FROM OUR CUSTOMERS, I, YOU KNOW, THAT'S NOT A VIABLE OPTION, BUT IF IT WAS THE BILL WOULD GO TO 1 1 12.

SO YOU CAN SORT OF SEE THAT THE AMOUNT OF THE ACTUAL COST OF ENERGY THAT'S INCURRING, UH, BUT GOING TO ONE 12, HOW MUCH OF THE PSA INCREASE WOULD THAT BE INSTEAD OF $20? THAT WOULD BE RIGHT.

UM, I DON'T HAVE THAT EXACT NUMBER.

LET'S SEE, 14 TWO, THAT'D BE ABOUT $7 ROUGHLY.

IS THAT RIGHT? ONE 19 OR 12? UH, LITTLE OVER $7.

AND DEPENDING ON IF THE NATURAL GAS PRICES GO DOWN, THEN, THEN PERHAPS THE RATE WILL GO, WE CAN ADJUST THE RATE MID-YEAR.

SO I MEAN, SO THAT'S KIND OF WHAT I WAS HOPING TO GET OUT OF THIS CONVERSATION WAS UNDERSTANDING IF WE DID A $7 INCREASE AND WE PULLED FUNDS FROM A STABILIZATION FUND OR WE EXPLORED OTHER WAYS TO MAKE UP THAT GAP, WHAT COULD THAT LOOK LIKE? BECAUSE RIGHT NOW THESE TWO OPTIONS, THEY STILL HAVE US DOING A, A PRETTY SIGNIFICANT RATE SHOCK OF, CUZ WE WOULD STILL DO THE 20 PSA BEGINNING IN JANUARY,

[01:30:01]

UM, AND TO GET DOWN TO THAT ONE 12 IN 20, IN 2023.

UM, SO I STILL, UM, YOU KNOW, A LOT TO CONSIDER HERE, BUT I STILL NEED MORE INFORMATION ON OTHER OPTIONS SO THAT, I GUESS THERE'S, THERE'S, UH, TWO, UH, TWO CONCERNS I HAVE WITH THAT OPTION.

SO, UH, SO ONE IS, UM, THOSE ARE EXPENSES WE'VE ALREADY INCURRED.

SO WE, WE'VE ALREADY SPENT THAT CASH, SO PART OF THE STABILIZATIONS, WE'VE ALREADY, WE'VE ALREADY STABILIZED IT IN SOME PART BECAUSE WE PAID CASH, UH, FROM AUSTIN ENERGY IN ADVANCE OF THOSE BILLS FOR THE INTENT OF COLLECTING IT IN THE FUTURE THOUGH, THAT'S THE WAY THE RATES ARE DESIGNED.

AND SO, UH, WE DON'T HAVE THE LIQUIDITY OR THE CASH ON HAND TO FURTHER EXTEND THAT SORT OF CREDIT TO OUR CUSTOMERS.

WE'RE WE'RE, WE'RE STRUGGLING CASH WISE TO KEEP UP.

UM, THE SECOND CONCERN IS, UM, THAT THE RULES THAT WE USE, UH, FOR HOW WE SET RATES, UM, AND HOW WE ACCOUNT FOR THIS, UM, THE INTENT IS THAT WE WILL RECOVER THAT RATE OVER A REASONABLE PERIOD AND WE GENERALLY INTERPRET THAT AS THREE YEARS.

AND SO IF WE DON'T, WE RUN THE RISK OF BEING REQUIRED TO WRITE THIS OFF ON OUR FINANCIALS SAYING YOU'RE NOT GONNA RECOVER IT, YOU DON'T, YOU DON'T HAVE A PLAN TO RECOVER IT.

UM, AND THE CREDITOR, THE CREDIT RATING AGENCIES MIGHT LOOK AT THIS IN A NEGATIVE FASHION, UH, AND WOULD REACT WITH A POTENTIAL DOWNGRADE AS A RESULT OF THAT SAYING THERE'S NOT POLITICAL WILL TO ADJUST RATES TO WHERE THEY NEED TO BE, RECOVER THE COST.

SO THOSE ARE THE CONSEQUENCES OF THOSE TYPES OF ACTIONS.

SO I'M LOOKING AT THIS AND ON PAGE 14 I THINK IS THE INSTRUCTIVE ONE.

SO OUR BILL AND THAT INCLUDES THE BASE RATE AND THE PSA RIGHT NOW IS ALMOST JUST UNDER $85.

AND IF WE DO THE BASE RATE INCREASE AS YOU PROPOSE AND THE PSA INCREASE AS YOU PROPOSE IT GOES TO ONE 19, THAT'S THE DOUBLE WHAMMY TOGETHER.

WHAT YOU'RE SAYING IS UNDER OPTION TWO, IT WOULDN'T BE THE $20 INCREASE ON THE PSA, IT WOULD BE $5 LESS THAN THAT.

SO YOU'RE CUTTING BACK ABOUT 25% OF THE PSA ORIGINAL RECOMMENDATION.

SO THE TOTAL BILL WOULD GO FROM ONE 19 DOWN TO ONE 14, WHICH IS $5.

SO INSTEAD OF GOING UP FROM 85 TO ONE 19, IT GOES FROM 85 UP TO ONE 14.

UH, SO THERE IS SOME DECREASE THERE.

AND THIS IS A HARD ONE, RIGHT, BECAUSE THIS IS, THIS IS A SHOCK TO RATE PAYERS AND IT'S A, WHICH IS WHY WE HAVE TO SPEND A LOT OF TIME FIGURING OUT HOW WE'RE NOT IN THIS PLACE.

AGAIN, UH, AT THE SAME TIME IT'S MONEY THAT WE'RE LOSING AND WE HAVE TO STOP THE HEMORRHAGING.

SO, SO WE HAVE TO ACT AND THIS IS MONEY WE'VE ALREADY PAID THAT WE HAVE TO PAY BACK.

SO, UH, UH, EVEN THOUGH IT'S NOT GOOD, IT IS, IT'S NECESSARY AT SOME LEVEL.

SO I WOULDN'T SUPPORT AN OPTION THREE, WHICH HAS US NOT PAYING IT BACK FOR THE REASONS THAT YOU SUGGEST.

THEN I LOOK AT OPTIONS ONE AND TWO TO FALL BACK ON OPTION ONE IS, OR THE BENEFIT OPTION ONE IS WE, WE, WE ACCUMULATE ALL THE RESERVES AGAIN IN YEAR ONE AND WE'RE BEST ABLE TO BE RESILIENT IF THERE'S A SPIKE IN YEARS TWO AND THREE.

THE DRAWBACK IS, IS THAT THE SHOCK TO, TO THE RATE PAYERS IS, IS HIGHER, UH, UNDER OPTION TWO.

BUT THERE IS SOME CERTAINTY AND, AND, AND I THINK THAT CERTAINTY COUNTS FOR A LOT.

I MEAN, PEOPLE BUDGET FOR AN EXPENSE IF THEY KNOW WHAT THE EXPENSE IS GONNA BE, THEY FIGURE OUT HOW TO DO THE EXPENSE AS BEST THEY CAN AND THEN, AND THEN THEY JUST DON'T WANT IT TO CHANGE.

AND OPTION TWO AT LEAST SETS THAT FOR THREE YEARS.

SO WE HAVE TWO CHOICES.

I MEAN, I WOULD LIKE TO BUILD IN THE RESILIENCY, WHICH MEANS THAT THING HAS TO BE HIGHER, BUT AT THE SAME TIME I WANNA AVOID THE RATE SHOCK, WHICH MEANS IT NEEDS TO BE LOWER.

AND TO ME, AS I LOOK AT THESE OPTION TWO SEEMS TO BE THE RIGHT COMPROMISE BETWEEN THOSE TWO IMPERATIVES, UH, THAT WE HAVE TO SET.

BUT I WOULD ALSO LIKE, AS WE'RE LOOKING AT THIS CHART TO, TO GET TO WHAT IS ITEM NUMBER TWO ON THE SHEET THAT I HANDED OUT, WHICH IS TO SAY THAT WE CONTINUE TO GET A GENERAL FUND TRANSFER AT THE SAME LEVEL.

WE'VE BEEN GETTING IT, WE JUST DON'T GET AN EXTRA ONE OVER THE NEXT THREE YEARS CUZ THE BAIT RATE'S GOING UP.

NOT THAT WE WOULD CHANGE THE EQUATION FOR CALCULATING THE GENERAL FUND TRANSFER, I THINK IT NEEDS TO, WE SHOULDN'T BE CHANGING THE FORMULA, BUT IT JUST MEANS THAT WE WOULD BE DECIDING NOT TO TAKE THAT MONEY OUT OF THE SYSTEM.

AND WHEN WE GET TO THAT QUESTION, I'D LIKE TO KNOW HOW THAT WOULD ALSO IMPACT THE COMBINED BILL CUZ I'D LIKE TO KNOW THE ANSWER TO, TO THAT QUESTION.

QUESTION, HOW WOULD NUMBER TWO IN FACT IMPACT THE COMBINED

[01:35:01]

BILL? I WOULD IMAGINE IT WOULD HAVE AN IMPACT ON THE BASE RATE CASE IF, UH, THE EXAMINER AND, AND YOU ALL KNEW THAT THAT MONEY THAT YOU'RE CURRENTLY CAL, UH, ANTICIPATING WOULD GO TO THE CITY GENERAL FUND, DIDN'T WENT TO THE CITY GENERAL FUND, BUT THEN WAS IMMEDIATELY PUT TO AUSTIN ENERGY RESERVE.

SO AT SOME POINT BEFORE WE LEAVE YOU HERE TODAY, I'D LIKE TO KNOW WHAT YOU THINK THAT, HOW THAT WOULD IMPACT THIS PAGE T ONE, THIS PAGE 14 COUNCIL REMEMBER KITCHEN.

UM, THANK YOU.

I HAVE UM, THIS IS VERY HELPFUL.

I APPRECIATE THIS.

UM, I HAVE JUST TWO QUESTIONS.

UM, SO THE FIRST ONE IS, I JUST WANNA CLARIFY, I THINK I'M UNDERSTANDING WHAT YOU'RE SAYING, BUT THE, THE 114 THAT WE JUST TALKED ABOUT IN BOTH OF THOSE SCENARIOS, 119 DOWN TO 114, I THINK WE SAID IN BOTH OF THOSE SCENARIOS, WE'RE ASSUMING THAT WE, UH, BOTH OF THOSE SCENARIOS INCLUDE THE SECOND PIECE, THE BASE RATE THAT WE HAVEN'T DECIDED YET.

AND BOTH OF THOSE SCENARIOS ASSUME THAT WE'RE GONNA GO WITH THE BASE RATE THAT UM, THAT'S CURRENTLY PROPOSED.

SO I JUST WANNA REMIND PEOPLE THAT WE HAVEN'T APPROVED THAT BASE RATE YET AND SO WE'LL NEED TO TALK ABOUT OPTIONS FOR POTENTIALLY REDUCING THE BASE RATE, ALTHOUGH I UNDERSTAND THAT WE HAVE THE SAME KIND OF, YOU KNOW, WE HAVE SOME, YOU KNOW, PARAMETERS WE HAVE TO WORK WITH THERE, BUT I JUST WANNA MAKE SURE WE SAY THAT BECAUSE THERE ARE, THERE, THERE ARE CONCERNS ABOUT THE, THE PROPOSED BASE RATE.

SO WE'RE NOT, I OF THE PUBLIC DOESN'T UNDERSTAND ON THE ACTION WE'RE TAKING ON THURSDAY IS NOT AN ACTION ON THE BASE RATE.

SO THERE'S THAT.

THE SECOND THING IS WE HAVEN'T TALKED ABOUT THIS AND SO I DON'T KNOW IF I, I DOUBT THAT IT WOULD HELP US SIGNIFICANTLY, BUT I DO WANNA UNDERSTAND THE UM, THE IMPACT ON OF OUR PROGRAMS AROUND, UH, FOR LOWER INCOME CUSTOMERS, OUR CAP PROGRAM, UM, AND WHETHER THERE IS ANY, WHETHER THERE'S ANY UTILITY OR ANY POTENTIAL TO USE THAT PROGRAM TO HELP WITH THE RATE SHOP WE'RE TALKING ABOUT.

I KNOW IT DOESN'T HELP EVERYBODY, BUT WE HAVEN'T TALKED ABOUT THAT AT ALL, AT ALL.

UH, AND SO, AND MAYBE THAT THAT'S BECAUSE THERE IS NO OPTION THERE, BUT I THINK WE, I WOULD LIKE TO UNDERSTAND THAT.

SO RELATIVE TO JUST THE PSA AND REGULATORY CHARGE, OUR CUSTOMER ASSISTANCE PROGRAM CURRENTLY AFFORDS, UM, PROVIDES, UH, THEY DO NOT PAY, UM, THE CUSTOMER CHARGE AND THAT'S CURRENTLY $10 A MONTH.

UM, THEY DON'T PAY THE, UM, THE CAP PORTION OF THEIR CBC, WHICH IS DO MINIMUS.

IT'S PROBABLY LESS THAN 25 CENTS OR SOMETHING, I DON'T KNOW.

UM, AND THEY ALSO UH, GET A 10% REDUCTION ON THE TOTAL BILL AMOUNT.

SO IF YOU HAVE AN INCREASE OF $10 IN YOUR POWER SUPPLY COSTS, UH, THEY WOULD GET ONE, THEY WOULD PAY $9 NOT TO $10, IT'D BE 10% OF THAT.

SO OF COURSE IF WE WERE TO DO ANYTHING DIFFERENT WITH THE CAP PROGRAM, THERE'S STILL A COST TO THAT, BUT WE HAVEN'T, UH, HAVE YOU LOOKED AT, UM, ANYTHING THAT WE COULD DO WITH THE CAP PROGRAM AND AN ADJUSTMENT WE COULD MAKE TO THE CAP PROGRAM THAT WOULD HELP SOME WITH THE RATE SHOCK FOR OUR LOWEST INCOME FOLKS? YEAH, SO A PART OF OUR BASE RATE, WHICH IS REALLY WHERE IT'S IMPACTED, WE DO HAVE SOME RECOMMENDATIONS TO HELP LESSEN THE IMPACT FOR OUR VULNERABLE CUSTOMERS, UH, IN THAT.

AND THAT'S PART OF CHANGING THE TIER STRUCTURES AND MOVING MORE TO THE CUSTOMER CHARGE.

THEY WOULD, WE'RE NOT CHANGING THE PROGRAM ITSELF CAP, THEY WOULD STILL NOT PAY THE CUSTOMER CHARGE, BUT BY GOING FROM 10 TO 25, THEY WOULD GET A $25 REDUCTION ON A BILL AND BY REDUCING THE TIERS THEY WOULD PAY LESS, UM, FOR THE ENERGY THEY USE AND THAT 10% WOULD, UM, APPLY, APPLY TO THAT.

UM, OKAY.

BUT FOR THE, FOR THE PSA, THE POWER PRI AGREEMENT THAT WE'RE LOOKING AT RIGHT NOW, DO YOU SEE ANY POSSIBILITY FOR USING THE CAP PROGRAM TO HELP WITH THIS, THIS PART OF THIS, OF THE UM, UM, OR IS THAT SOMETHING YOU NEED TO GO BACK AND THINK ABOUT OR? YEAH, I UM, ABOUT THE ONLY WAY TO AFFECT THE PSA OR HOW MUCH TO LIMIT THE, THE AMOUNT OF INCREASE THAT THEY WOULD SEE FROM THE PSA WOULD BE TO INCREASE THE DISCOUNT PERCENTAGE, RIGHT? KINDA LIKE WE DID DURING COVID, WE INCREASED THE 15%, I GOT 15% REDUCTION.

THAT'S THE ONLY DIRECT WAY TO IMPACT THAT UNDER THE CURRENT STRUCTURE OF THE CAP PROGRAM.

I DON'T WANNA TALK TOO MUCH MORE CUZ I'M NOT THE CAP EXPERT.

I THINK WE HAVE FOLKS IN THE UTILITY WHO KNOW MUCH MORE ABOUT THAN I DO.

AND OF COURSE IF WE DID THAT, IF WE INCREASED THE DISCOUNT THEN AS BE MADE UP IN EVERYONE ELSE'S RATES, RIGHT? THAT'S CORRECT.

SO THAT THOSE RATES WOULD GET FLOW THROUGH THAT, THAT COMMUNITY BENEFITS CHARGE AND THE NON CAP CUSTOMERS WOULD SEE AN INCREASE THE RESULT OF THAT.

THAT'S, UNLESS WE DID, YOU KNOW, I I I'M GETTING A LITTLE BEYOND WHAT

[01:40:01]

MIGHT BE POSSIBLE.

LET ME JUST SAY THIS LAST THING AND THEN WE COULD TALK ABOUT IT OFFLINE.

SO IF WE COULD INCREASE THE PERCENTAGE, UM, AND JUST USE THAT INCREASE TO, TO FIND A DIFFERENT WAY TO ADDRESS WHAT THAT INCREASE COST WAS.

SO, SO IT'S A KIND OF A, A MATCH OF OPTION TWO AND OPTION THREE, BUT NOT GOING AS FAR AS OPTION THREE IN TERMS OF, UM, YOU KNOW, JUST CARRYING THOSE, THOSE COSTS.

LET ME JUST THINK ABOUT THAT BECAUSE I THINK WHAT WE'RE, I THINK THE BIGGEST CONCERN I HAVE IS I, I DO HAVE A CONCERN ABOUT THE, UM, THE, UH, RATE SHOCK ACROSS ALL OF OUR CUSTOMERS, BUT OF COURSE MY BIGGEST WORRY IS FOR OUR FIXED INCOME AND LOWEST INCOME, UM, UH, CUSTOMERS.

SO I JUST WANT TO GIVE A LITTLE BIT MORE THOUGHT TO WHETHER THERE'S ANY POTENTIAL TO ASSIST THOSE CUSTOMERS.

I WOULD JUST ADD WHAT, JUST AS A MUNICIPAL UTILITY, WE RECOVER ALL OF OUR COST FROM OUR RETAIL CUSTOMERS TO THE SALE OF KWH.

AND SO I DON'T HAVE ANOTHER, UH, POT OF REVENUE SOURCES RIGHT NOW TO GO TO IF WE DON'T COLLECT IT FROM A RETAIL CUSTOMER.

THAT'S JUST A LIMITATION OF US AS A MUNICIPAL UTILITY.

I, I UNDERSTAND .

FIRST OF ALL, I JUST WANNA SAY THANK YOU FOR THE EXAMPLES WITH REGARD TO THE, THE BUSINESS EXAMPLES.

UH, CAUSE I KNOW THERE HAS BEEN A LOT OF UNCERTAINTY, UH, IN THE BUSINESS COMMUNITY AS TO HOW THIS IS GONNA AFFECT THEM.

AND AT LEAST THAT GIVES YOU KIND OF SOME KIND OF GUIDANCE AS TO THE SIZE AND TYPE OF YOUR BUSINESS AND WHAT KIND OF PSA A RATE INCREASE, UH, THAT, UH, THAT, UH, YOU CAN EXPECT.

SO I JUST WANTED TO SAY THANK YOU FOR THAT EXAMPLE.

HAVE WE DONE A MULTI-YEAR PSA, UH, INCREASED BEFORE? UM, SO WE ADOPTED THIS CURRENT METHODOLOGY BACK IN 2012.

UM, AND NOT SINCE THEN, IT'S ALWAYS BEEN ON A 12 MONTH BASIS.

WE DID ADJUST IT, UH, ONE TIME MIDYEAR IN APRIL OF 2016 WHEN WE HAD OVER COLLECTED AND WE WERE ABLE TO GIVE IT THIS, UH, A REDUCED RATE IN APRIL.

OTHER THAN THAT, IT'S ALWAYS BEEN ON NOVEMBER 1ST, PRIOR TO 2012, WE HAVE WHAT'S CALLED A FUEL COST ADJUSTMENT AND THAT WAS CHANGED ADMINISTRATIVELY, UM, AS NEEDED DURING THE COURSE OF THE YEAR.

UM, BUT IN THE LAST 10 YEARS WE HAVE NOT.

I DO APPRECIATE THE, THE MAYOR'S, UH, AMENDMENTS AND THE POSSIBILITY HONESTLY OF GOING TO MAYBE A MORE FREQUENT, A QUARTERLY OR, YOU KNOW, SOME KIND OF ADJUSTMENT, ROLLING ADJUSTMENT LIKE THAT.

SO THERE'S NOT AS MUCH OF A SHOCK, YOU KNOW, FROM YEAR TO YEAR, ESPECIALLY GIVEN THE, THE FLUCTUATIONS AND, UM, ENERGY PRICES THAT, UM, THAT UH, UH, WE'VE SEEN.

AND WITH REGARD TO THE MAY INCREASE OR, YOU KNOW, AROUND MAY WHEN THE, UH, WAS THAT A COMBINATION OF, OF A FUEL PRICES AND, UH, AND, AND WEATHER THERE OR WHAT, WHAT WERE THE KIND OF OUTSIDE FACTORS THAT THAT PRODUCED THAT BUMP? RIGHT.

SO WAS, UM, THE COST OF THE ELECTRICITY WE WERE BUYING FROM MURCOTT AS A RESULT OF GAS AND CONGESTION, UM, AMPLIFIED BY THE AMOUNT OF ENERGY S WE'RE USING.

IT STARTED TO GET IT REALLY WARM BACK IN MAY.

WE HAD, UH, A 14% INCREASE IN CONSUMPTION BETWEEN, UH, MAY AND AUGUST OVER LAST YEAR.

SO PEOPLE WERE JUST USING A LOT MORE AND IT WAS COSTING MORE SO IT AMPLIFIED THAT THAT LOSS.

AND DID THAT HAVE ANYTHING TO DO? I KNOW THAT THE, YOU KNOW, THE, UH, WARREN UKRAINE, UH, AND, AND OBVIOUSLY THE FUEL KIND OF SUPPLIED NATURAL GAS SUPPLY DISRUPTIONS, UH, AS WELL.

DID I PLAY A MAJOR FACTOR IN THAT AS WELL OR? IT DID.

UH, IF I RECALL THAT THE WAR, UH, STARTED IN FEBRUARY AND NATURAL GAS, UM, IS, IS TURNING KIND OF LIKE OIL OR GOLD OR SOMETHING ELSE.

AND SO, UM, BECAUSE YOU CAN, UH, LIQUI, YOU CAN, UH, LIQUEFY IT AND TRANSPORT IT NOW, UM, WHAT HAPPENS IN OTHER PARTS OF THE WORLD IMPACTS WHAT WE PAY FOR GAS HERE IN TEXAS, EVEN THOUGH WE HAVE A LOT OF GAS IN TEXAS, IT'S STILL SET AT A GLOBAL PRICE.

MONTH IN THE POWER SUPPLY ADJUSTMENT FOR AGAIN, YOUR, YOUR TYPICAL 860 KILOWATT AN HOUR, UH, UH, CONSUMER.

AND LOOKING AT THE, THE, THE TWO DIFFERENT OPTIONS BEFORE US, WELL, I'M REALLY TORN HONESTLY.

I, I, MY MY SENSE WOULD BE TO GET IT OVER WITH HONESTLY, UH, JUST BECAUSE WE DON'T KNOW WHAT'S HAPPENING WITH THE ECONOMY AND WITH THE FUNDRAISING INTEREST RATES, UH, YOU KNOW, WE COULD BE IN A WORSE ECONOMIC SITUATION NEXT YEAR.

UH, AND I WOULD RATHER, MY, MY SENSE WOULD BE POTENTIAL INCREASE IN ENERGY PRICES AGAIN, YOU KNOW, WE'RE SEEING THE NEWS WITH THE DESTRUCTION OF THE PIPELINE AND, AND YOU KNOW, EVERYONE'S, YOU KNOW, HOPING FOR NOT A HORRIBLY FRIGID WINTER THAT WILL NOT SEND, UH, NATURAL GAS IN EUROPE, YOU KNOW, THAT WILL NOT SEND NATURAL GAS PRICES SPIRALING UP AGAIN.

BUT MY CONCERN WOULD BE IF WE SPREAD IT OUT THEN, YOU KNOW, WE MIGHT HAVE TO LAYER A COUPLE OF MORE INCREASES ON, UH, OUR, UH, CUSTOMERS IN THE, YOU KNOW, 2024 AND 2025 TIMEFRAME.

AND GIVEN THAT, YOU KNOW, AGAIN, FROM THE EXAMPLE THAT YOU SHOWED, I BELIEVE WAS ABOUT A $5 DIFFERENCE A

[01:45:01]

AH, THAT'S, IT'S, IT'S A TOUGH ONE.

YOU KNOW, I MEAN, YOU HAVE TO KIND OF LOOK INTO THE FUTURE, YOU KNOW, IF WE COULD SAY THAT THINGS WERE GONNA STABILIZE IN, YOU KNOW, IN 2024 AND 2025, THAT'S FINE.

THEN WE CAN, YOU KNOW, ROLL THAT OUT.

BUT I'M NOT SURE THAT'S TRUE.

AND, AND, AND THAT GIVES ME PAUSE TO WHERE ARE WE GONNA BE BACK IN THE SAME SITUATION DOING THIS AGAIN, LAYERING AN A, A HEFTY INCREASE ON TOP OF A HEFTY INCREASE.

UM, AND THEN JUST ONE FINAL QUESTION.

IN TERMS OF A PERCENTAGE OR SIZE OF THE INCREASE, IS THIS ONE OF THE, THE BIGGEST PSAS THAT, THAT WE'VE SEEN? I BELIEVE SO, YES.

IN THE LAST 10 YEARS.

THANK YOU APPROACH, TIM.

UM, FIRST I WANNA THANK, UM, THANK YOU MR. JOHN BROSKI AND, AND THE SERGEANT FOR MEETING WITH ME MULTIPLE TIMES TO, TO GO THROUGH A LOT OF THIS MATH.

THAT WAS REALLY HELPFUL.

UM, I WANTED TO ASK IF YOU COULD PROVIDE US A SIMILAR CHART TO NUMBER 14 AT LEAST FOR, UM, THE PSA, THE PASS THROUGH CHARGES I GUESS I WOULD SAY BECAUSE, UM, THIS IS INCLUDING THE BASE RATE AND SINCE WE HAVEN'T ADOPT THAT AND WE GO AND TALK TO OUR, OUR CONSTITUENTS, IT JUST MAKES, IT WOULD BE HELPFUL TO HAVE THAT AS WELL, UM, TO BE ABLE TO LOOK AT THAT.

UM, I WANTED TO CLARIFY WHEN WE, WHEN WE ADOPT A TARIFF, UM, THIS WEEK THAT IS COVERING NOT JUST THE PSA BUT ALSO THE REGULATORY CHARGE AND THE CUSTOMER CHARGE.

IS THAT CORRECT? THAT'S CORRECT.

SO I WANT US TO BE REALLY CLEAR THEN ON THE DIFFERENT CHARGES.

SO WHEN WE TALK ABOUT $20, THAT IS BOTH THE PSA AND THE REGULATORY CHARGE CHANGES THAT ARE BEING PROPOSED, NOT ALL PSA.

SO ABOUT 1755 IS THE PROPOSED, IF YOU DO IT ALL AT ONCE FOR THE UNDER RECOVERY, UM, THAT IS ALL AT ONCE, THE 1755 WOULD BE THE PSA PORTION, IS THAT CORRECT? THAT'S CORRECT.

AND THEN 2 45 IS THE REGULATORY CHARGE AND WHAT CONSTITUTES THE REGULATORY CHARGE? CAN YOU TELL PEOPLE? SURE.

SO, UM, THE POWER SUPPLY ADJUSTMENT IS THE COST OF THE ELECTRICITY ELECTRONS PEOPLE USE, RIGHT? AND THE REGULATORY CHARGE IS WHAT WE PAY ALL THE TRANSMISSION SERVICE PROVIDERS TO MOVE ELECTRICITY AROUND ORCO.

SO, UM, WE HAVE TO CALL IT A MATRIX EXPENSE.

THOSE RATES ARE SET BY THE PUC AND THEN AT THE END OF THE DAY, WE SEND EACH OTHER'S CHECKS BASED UPON HOW MUCH ENERGY WE USE.

UH, AND IT'S, IT'S A SOCIALIZED COST.

UH, AND SO THAT'S, IT REPRESENTS MOVING THE ELECTRONS FROM THE GENERATORS TO THE LOAD ZONES.

SO THERE'S A PORTION OF THIS INCREASE THAT'S COMING FROM ACO, WHICH IS REGULATED BY THE STATE THAT WE HAVE TO COVER IN THIS INCREASE THAT THERE'S SOME FEES FROM ACOT YES.

IN THERE.

UM, AND THEN AS, UM, THE OTHER PIECE THAT I WANTED TO MAKE SURE, UM, THAT WE CLARIFYING GOES ALONG WITH LINES OF, THINK OF WHAT MR. BAYLA WAS SAYING IS THIS TARIFF ASSUMES NO ADDITIONAL VOLATILITY OR SPIKES IN PRICES.

THAT'S CORRECT.

SO IT ASSUMES THAT THE PRICE OF ENERGY WE SAW IN 2022 WILL BE THE SAME IN 2023.

TO THE EXTENT IT'S NOT, IT WILL CONTRIBUTE TO AN OVER UNDER COLLECTION IN THAT PERIOD.

SO I'M STILL THINKING THIS THROUGH, BUT I THINK I'M LEANING A LITTLE BIT TO WHERE, UM, MR. VELA IS BECAUSE I THINK IT GIVES US A LITTLE CUSHION THAT WE DON'T, NOT ONLY NOT ANTICIPATE THAT, BUT WE DON'T END UP UNDER RECOVERING AGAIN AND HAVE TO, TO KEEP, KEEP GOING.

UM, WITH THAT, UM, THAT SEEMS TO TO BE THE DIRECTION, UM, THAT I AM LEANING IN AT THIS POINT.

UM, I'M, I'M CONCERNED ABOUT THE FURTHER VOLATILITY.

UM, THE LAST QUESTION, AND YOU TELL ME IF THIS NEEDS TO BE COVERED IN OUR EXECUTIVE SESSION, BUT WE HAVE 104 MILLION THAT'S UNDER RECOVERED.

UM, AND OF THAT, A PORTION OF THAT 27 MILLION WE'RE ASCRIBING TO THE BRAZOS, UM, SETTLEMENT.

NOW WERE WE TO GO FORWARD WITH THE, LET'S SAY THE WHAT'S WHAT YOU GUYS PROPOSED WHEN THAT BRAZOS, UM, SETTLEMENT COMES IN, THAT WOULD THEN ALLOW US EITHER TO LOWER THE RATE POTENTIALLY WHERE WE ARE AT OR TO SAY IN THE FUTURE YEARS, THOSE ARE GONNA BE EVEN FURTHER LOWERED RELATIVE TO WHERE WE ARE IN THE FIRST YEAR, IF THERE'S NO OTHER CHANGES TO THE PRICE.

CORRECT.

I'M COMFORTABLE SPEAKING ABOUT THIS PUBLIC.

IF WE WERE TO GET A PAYMENT FROM, UH, FROM ERCOT ASSOCIATED WITH BRASS BANKRUPTCY, WE WOULD GET THE CASH.

AND THAT

[01:50:01]

CASH CAN DO TWO THINGS.

IT CAN HELP PAY PART OF THE UNDER RECOVERY THAT WE'RE TRYING TO COLLECT THE RATES, OR WE CAN PASS THAT BACK THROUGH TO THE CUSTOMER THROUGH A REDUCTION PSA RATE, BUT NOT IN IMPROVE THE CASH BUSINESS OF LOSS ENERGY.

I THINK THAT'S A DECISION FOR COUNCIL TO MAKE ONCE WE FIGURE OUT WHAT WE'RE GONNA RECEIVE THOSE CASH.

BUT AS, AS WE, AS WE'RE LOOKING AT, YOU KNOW, THE CAUSES OF THIS, THERE IS THE INCREASE IN THE COST OF ENERGY THAT EVERYONE IN THE COUNTRY AND THE WORLD IS FACING.

AND THEN WE HAVE ADDITIONAL COSTS BECAUSE OF AIRCO AND THE WAY THE AIRCO MARKET IS NEEDING TO SHIFT TO RELIABILITY.

UM, AND WE HAVE TO PAY THOSE CHARGES.

WE DON'T, WE DON'T GET TO CHOOSE WHETHER WE, WE PAY THOSE JUST AS WE DON'T GET TO CHOOSE WHETHER WE PAY OUR CREDITORS, UM, FOR THE ENERGY WE'VE ALREADY CONSUMED.

CORRECT? THAT'S CORRECT.

SO IT'S LIKE A CLEARING HOUSE.

UM, THEY JUST PASS THOSE COST ON US AND WE PAY THEM CUZ WE'RE A PARTICIPANT.

JUST REAL QUICK, THE, THE, THE QUESTION OF WHAT RISK IS PRESENTED WITH FUTURE VOLATILITY IN YEARS TWO AND THREE, IF WE CHOOSE OPTION TWO IN PART DEPENDS ON HOW QUICKLY YOU CAN REACT AS AUSTIN ENERGY.

UH, IF, IF, IF THERE'S VOLATILITY AND WE KNOW WE'RE GONNA REPEAT THE EXPERIENCE WE HAVE HERE, THAT MAY INDICATE THAT ONE PATH FOR ME.

IF YOU THINK THAT EVEN LOOKING AT WHAT HAPPENED IN MAY, THE NUMBERS STARTED MOVING IN MAY, BUT YOU DON'T GET THE MAIN NUMBERS UNTIL JULY, WHICH IS THAT LAST JUNE, RIGHT? RIGHT.

IN JUNE.

BUT, BUT YOU'RE ALSO SEEING NUMBERS IN MAY, RIGHT? YOU'RE SEEING NUMBERS EVERY DAY, EVERY 15 MINUTES.

I CAN, SO EVERY 15 MINUTES.

SO MAYBE THERE ARE WAYS NOT TO WAIT TILL JUNE FOR THE OFFICIAL NUMBERS, BUT TO RESPOND TO THE INFORMATION DATA YOU'RE GETTING IN MAY.

MAYBE THERE'S A WAY FOR US TO DO OPTION TWO BUT STILL PROTECT AGAINST THE VOLATILITY POTENTIAL SO WE COULD REACT TO IT MORE QUICKLY IF THAT HAPPENS.

SO THAT EVEN IF THAT HAPPENED, WE WOULDN'T BE IN A, IN A SHOCK OR SOMETHING WHERE WE'RE PREJUDICED BY CHOOSING OPTION TWO.

AND AT SOME POINT I'D LIKE YOU TO, TO ADDRESS IS THAT POSSIBLE? IT IS, YOU KNOW, WE TALKED ABOUT WHAT WHAT MIGHT HAPPEN IN THE FUTURE THAT SPECULATION.

UM, AND SPECULATION MAKES COMMODITY TRAITS VERY RICH AND IT MAKES THEM VERY POOR, UH, BECAUSE YOU GET, YOU'RE RIGHT AND WRONG.

SOMETIMES I WOULD CAUTION US, UH, AGAINST SPECULATING WHAT MIGHT HAPPEN.

UM, UH, WE HAVE A LOT OF TOOLS THAT WE CAN LOOK AT, BUT BEFORE WE GO THERE, I THINK THE, THE IMMEDIATE SOLUTION IS TO LOOK AT THIS ON A MORE FREQUENT BASIS AND MAKE FINE TUNE ADJUSTMENTS DURING THE COURSE OF THE YEAR IF WE NEED TO.

DON'T WAIT TILL IT'S 10% OF THE POWER SUPPLY COST.

UM, THAT TO ME IS THE, THE SHORT TERM SOLUTION ON HOW TO KEEP THIS ON TRACK WHILE WE LOOK AT OTHER OPTIONS.

WE DON'T WANNA DO SOMETHING HAS AN UNINTENDED CONSEQUENCE.

UH, WE DON'T SPECULATE.

THIS IS ALL OUR, THIS IS OUR CUSTOMER'S MONEY.

WE DON'T SPECULATE IT, WE DON'T BET ON THINGS.

AND SO I JUST BE CAUTIOUS ABOUT PUTTING THOSE PERSPECTIVE RATES, UM, INTO THE METHODOLOGY.

AND SO FROM THE TIME THAT WE SAY, ALL RIGHT, WE NEED A CHANGE, WE GET IT ON THE AGENDA, WE HAVE THE HEARING, WE IMPLEMENT THE CHANGE IN REBUILDING SYSTEM, START COLLECTING CASH, THAT'S ALMOST THREE MONTHS.

SO ON THURSDAY, I THINK IT'D BE HELPFUL TO COME BACK WITH THE ABILITY FOR US TO BE ABLE TO GO OPTION ONE, OPTION TWO.

AND I ALSO THINK IF YOU COULD COME BACK WITH US BEING ABLE TO PUT INTO IMMEDIATE EFFECT THE KIND OF THING THAT YOU JUST TALKED ABOUT, WHETHER WE PICKED OPTION ONE OR OPTION TWO, I THINK THAT'D BE HELPFUL.

THAT'S WHAT I TOLD THEM.

YEAH, I I, I TOTALLY AGREE WITH THAT.

I THINK IF, ESPECIALLY IF WE'RE DOING OPTION TWO, WELL, EITHER WAY, I THINK, I THINK THAT, UM, YOU'VE POINTED THE PATH ON PAGE 20.

UM, IT SEEMS TO ME THAT YOU TALKED ABOUT EVALUATING THE FREQUENCY AND I I ASKED YOU TO CONSIDER WHAT, WHAT AN, WHAT AN APPROPRIATE CHANGE MIGHT BE.

IS IT, UM, EVERY THREE MONTHS OR IS IT, OR WOULD IT BE BETTER TO DO BULLET THREE, UM, APPROVING THE TARIFF WITH AN AMENDMENT TO ADJUST IT? I THINK I HEARD YOU SAY AS ONE SUGGESTION OF 5% IMPACT ON THE BILL.

YEAH, JUST AS AN EXAMPLE, YOU KNOW, I THINK THERE IS MORE THOUGHT TO GO INTO ALL OF THESE BULLETS, UM, BUT I DO THINK WE NEED TO DO SOMETHING IMMEDIATELY ON THURSDAY IN TERMS OF THE TARIFF.

SO I THINK THE QUESTION FOR US IS LIKE, WHAT THAT, WHAT THAT IS.

AND SO, MR. D BROSKI, WHAT WOULD, HOW WOULD YOU RESPOND TO A, UM, AN AMENDMENT THAT I HOPE YOU WOULD HELP ME CRAFT THAT SAID, EVERY THREE MONTHS, YOU KNOW, THE POWER SUPPLY CAN BE ADJUSTED EVERY THREE MONTHS.

UM, AND, AND OR AE HAS THE ADMINISTRATIVE AUTHORITY TO ADJUST IT IF IT'S 5% OF A BILL IMPACT OR WHAT, WHAT WOULD YOU SUGGEST ALONG THOSE LINES? WHAT WOULD YOU SUGGEST AS AN AMENDMENT? SO, SO CURRENTLY THE PSA UH, TARIFF IS AN ORDINANCE.

SO IT REQUIRES A CITY COUNCIL HEARING TO CHANGE.

[01:55:01]

AND SO, UM, ONE OF THE THINGS WE'RE SAYING, ASH ASHLEY, IF WE WANT TO CHANGE THE RATE MORE FREQUENTLY IS TO PUT A CALLER PLUS OR MINUS ADMINISTRATIVE RIGHTS.

UM, AND THEN IT WOULD, YOU KNOW, PERHAPS REQUIRE US TO REPORT BACK TO COUNCIL.

WE'RE GONNA CHANGE THE PSA 3% THIS MONTH.

AND THIS IS THE REASON WHY PLUS OR MINUS, THAT WOULD, UM, UH, ALLOW US TO BE MORE AGILE.

UM, AND IF WE NEEDED MORE THAN THAT COLLAR, THEN WE WOULD GET KICKED INTO, UH, A HEARINGS.

WE WOULD COME BACK TO YOU IN A MORE FORMAL PROCESS THAT THAT COULD BE ONE WAY.

WELL, THAT MAKES SENSE TO ME.

BUT THEY'RE NOT MUTUALLY EXCLUSIVE.

RIGHT? BECAUSE YOU WOULD STILL NEED THE MIN YOU, I, ME YOU WOULD NEED THE ADMINISTRATIVE, I MEAN THE BULLET BULLET THREE WOULD HELP YOU IF YOU ARE IN A SITUATION WHERE AN IMMEDIATE RESPONSE IS NECESSARY.

BUT IF, IF THERE'S A TRAJECTORY THAT YOU CAN DETERMINE AT THREE MONTHS, THEN SETTING THE ORDINANCE FOR THE PSA CHANGE WOULD ALSO BE HELPFUL.

SO.

BEFORE WE MAKE OUR CHANGE OF POLICY.

SO IT SEEMS LIKE MAYBE BOTH OF A COMBINATION OF BOTH OF THOSE, UH, IN TERMS OF AMENDMENTS FOR THURSDAY MIGHT BE USEFUL.

WE'RE TALKING ABOUT, YOU KNOW, PRICE NATURAL GAS MIGHT GO UP AND IT MIGHT GO DOWN AND THINGS LIKE THAT.

CHANGING.

IT ALLOWS US TO STAY AHEAD OF THE CURVE A LITTLE BIT MORE THAN WHAT WE CURRENTLY DO.

SO AS OPPOSED TO SORT OF SPECULATING WHERE I MIGHT GO AND THEN SEEING IF WE'RE RIGHT OR WRONG, WE COULD PROBABLY KEEP THAT PRICE UP A LITTLE BIT CLOSER TO WHAT THE ACTUAL MARKET COSTS ARE.

IT'S GONNA CAUSE OUR CUSTOMER'S BILLS TO VARY FROM MONTH TO MONTH BASED UPON THE RATE.

UM, BUT IT WILL DECREASE THE AMOUNT WE NEED TO INCREASE IT BY THAT.

THAT MAKES SENSE.

IT DOES.

IT'S A WACKY THING TO SAY.

I DID HAVE A, I DID HAVE A COUPLE OTHER QUESTIONS.

I DON'T KNOW IF YOU WANNA GO TO COUNCIL MEMBER ENTRY AND THEN BACK TO ME, OR WE CAN DO THAT.

WE CAN, WE KEEP MOVING IT AROUND.

COUNCIL MEMBER.

UH, YES.

UM, YOU KNOW, ALL OF THIS IS REALLY CONCERNING CUZ EVEN IF, UH, YOU GO AT THREE MONTHS AT A TIME, THAT MEANS THAT YOU'RE GONNA GET SHOCKED FOR THREE MONTHS WHEN YOU GET YOUR, YOUR BILL FOR THE FUEL COST BECAUSE IT'S GONNA INCREASE.

I MEAN, HERE WE HAVE A STABLE COST FOR 12 MONTHS.

NOW YOU'RE GONNA HAVE THREE MONTHS OF GOING UP MAYBE 200 TO PAY FOR YOUR FUEL COST INSTEAD OF SPREADING IT OUT OVER THE WHOLE YEAR.

THAT'S, THAT'S CONCERNING TO ME.

AND YOU KNOW, I KNOW THAT ONE OF THE POWER COMPANIES THAT'S GOING THROUGH THE BANKRUPTCY, DO YOU SEE THAT WE'RE GOING TO EVER COLLECT FROM THAT? DO YOU THINK THEY'RE JUST GONNA GO OUT OF BUSINESS? NO, I, I, I HAVE HIGH CONFIDENCE THAT, UM, BRASS IS IN THE POSITION TO MAKE GOOD ON THE SETTLEMENT NEGOTIATED BETWEEN ERCOT, UH, WITH THE TRUSTEE OF THE BA BANKRUPTCY COURT.

I CAN'T GIVE YOU A TIME, BUT I KNOW THERE'S THAT AVAILABLE TO MAKE THE, THE SETTLEMENT PAYMENTS.

SO I'M, I'M CONFIDENT THAT IT'LL GO THROUGH AS PROPOSED.

THE FARTHER YOU GET OUT IN TIME, THINGS CAN ALWAYS HAPPEN, RIGHT? YES.

UM, BUT BY, I DO WANNA MAKE ON YOUR, YOUR FIRST POINT, WHICH IS, YOU KNOW, WE TALK ABOUT THIS STABLE PSA RATE.

UM, IS THAT ONE OF THE THINGS THAT, THAT WE SEE IS, UM, BY HAVING A STABLE PSA, I ALWAYS USE THIS AS AN EXAMPLE.

BACK IN MAY, JUNE, JULY AND AUGUST ONE, IT WAS VERY HOT AND CUSTOMERS WERE USING A LOT OF POWER FOR THE HVAC OR, OR, UH, YOU KNOW, WHATEVER THEY WERE USING THEIR POWER FOR, WE WERE CHARGING THEM 2.80 CENTS.

IF THEY REALLY KNEW THAT THE POWER THEY WERE USING AT THAT TIME WAS COSTING THEM 6 CENTS, WOULD THEY HAVE CHANGED THEIR BEHAVIOR? AND I THINK MOST FOLKS WOULD, IF THEY KNEW THAT'S HOW MUCH IT WAS A COSTING THEM, THEY WOULD'VE USED, THEY WOULD'VE CONSERVED, RIGHT? AND SO HAVING A FLAT STABLE PSA FOR SOME OF OUR CUSTOMERS SENDS THE WRONG PRICE SIGNAL.

AND NOW THEY'RE SAYING, WELL, WHAT CAN I DO ABOUT IT NOW? AND POINT IS, IT'S ALREADY HAPPENED.

THEY, THEY USED THE LAST LINE IN AUGUST, BUT NOW I NEED TO COLLECT THE MONEY.

AND SO I THINK THERE'S TRADE OFFS WHEN YOU LOOK AT THESE RATES, UH, THAT'S THE PRICE SIGNAL THAT NEEDS TO BE IN THE PSA THAT YOU DON'T GET THROUGH TIERED BASED RATES.

AND SO THAT'S ONE THING WE WANNA LOOK AT IS HOW CAN WE MAKE SURE THAT CUSTOMERS KNOW THAT THE ENERGY, THE ELECTRICITY THEY'RE USING, IT'S PRICED APPROPRIATELY SO THEY CAN GET THE RIGHT PRICE SIGNAL AND CONSERVE WHERE WE NEED THEM TO CONSERVE.

SO YOU BASICALLY, YOU'RE SAYING MAYBE WE SHOULD DO IT EVEN MONTH PER MONTH, BECAUSE I MEAN, THREE MONTHS LATER YOU ALREADY ACCUMULATED THIS BRI UH, COST AND YEAH, WELL WHAT I'M SAYING IS WE SHOULD LOOK AT IT.

I DON'T HAVE AN ANSWER.

THERE'S LOTS OF ANSWERS.

UM, YOU KNOW, THERE'S TIME OF USE RATES, WE HAVE MANDATORY TIME OF USE RATES.

UM, BUT WE ALREADY TALKED ABOUT A LOT OF THE CONSIDERATIONS HERE, WHICH IS, UH, WE HAVE VULNERABLE CUSTOMERS.

WE HAVE BUSINESSES THAT CAN'T NECESSARILY SHUT THEIR MACHINES DOWN IN THE AFTERNOON CUZ PRICES GET HIGH, RIGHT? SO ALL THOSE THINGS HAVE TO BE WEIGHED AND CONSIDERED AND EVALUATED

[02:00:01]

I JUST THINK WE NEED TO BE VERY DELIBERATE AND WE ALSO HAVE TO SEE WHETHER WHAT WE SAW THIS LAST YEAR, IN THE LAST 18 MONTHS, IS THAT GONNA CONTINUE OR THINGS GONNA SETTLE BACK DOWN WHAT WE SAW PRE COVID, PRERA WAR, UH, PRE CHANGES IN ACOT.

I, I DON'T KNOW, BUT I THINK WE NEED TO BE VERY DELIBERATE IN INTERACTIONS.

WELL, I THINK THAT'S A A A GOOD ANSWER TO MY QUESTION BECAUSE, UH, I IT IS, YOU KNOW, IT'S, IT'S A VERY DIFFICULT SITUATION CUZ YOU ALL KNOW WHAT IT'S GONNA BE LIKE.

AND I REALLY THINK OF ANOTHER POLICY IS THAT WE SHOULD HOLD ONTO SOME OF THAT MONEY THAT IF WE GET INTO A SURPLUS WHERE THE FUEL GO DOWN AND PUT IT IN YOUR RESERVE WOULD BE ANOTHER GOOD POLICY TO HAVE.

SO THAT WE CAN, THAT, YOU KNOW, WHEN THERE'S, IN THE, IN THE FUTURE THERE'S A SHOT, AT LEAST WE HAVE SOME MONEY TO BACK US UP.

THAT THAT LEADS TO GENERATIONAL EQUITY ISSUES.

THAT'S WHAT WE CALL IT, WHERE YOU COLLECT MONEY FROM A CUSTOMER TODAY, BUT ONE CUSTOMER AND YOU HANG ON IT TO THE BENEFIT OF A DIFFERENT CUSTOMER IN THE FUTURE.

THAT'S ONE OF THE POLICY TRADE OFFS THAT YEAH.

ANOTHER ONE THAT SPECULATE CUZ WE JUST WENT THROUGH, UH, HAVING TO SELL OFF THE WOOD BURNING PLANT THAT WE SPEND HUNDREDS OF MILLIONS OF DOLLARS OVER THERE AND IT'S PRODUCING.

ONE THING WE CAN DO IS FURTHER ENCOURAGE, UH, DISTRIBUTED GENERATION, LIKE TALKED EARLIER, ROOFTOP SOLAR, COMMUNITY SOLAR, UH, STORAGE SO THAT WHEN POWER PRICES ARE REALLY HIGH, WE DON'T HAVE TO BUY POWER FROM THE GRID.

WE HAVE IT ORGANICALLY IN OUR OWN OWN AREA.

THAT'S ONE OPTION THAT COMES AT A COST, BUT THAT'S ANOTHER OPTION WE EVALUATE.

NOW, AND I WOULD AGREE, WE WOULD AGREE FOR OUR STUDY AND, AND REALLY LOOKING INTO THAT BECAUSE, UH, I THINK THAT'S GONNA BE ONE OF THE, ONE OF THE SOLUTIONS TO ONE OF OUR, TO OUR PROBLEM PRO 10.

UM, SO YOU HAVE PRESENTED OPTION ONE AND OPTION TWO AND OPTION TWO WAS REQUESTED, UM, BY COUNCIL TO SEE WAYS THAT WE COULD SMOOTH THINGS OUT AND AND APPRECIATE THE BENEFITS OF THAT.

UM, BUT IF YOU WERE CHOOSING BETWEEN OPTION ONE AND OPTION TWO, I KNOW YOU'VE SAID YOU COULD DO OPTION TWO, BUT THAT IS NOT THE SAME AS RECOMMENDING IT.

SO, UM, I WOULD LIKE TO HEAR, YOU KNOW, BETWEEN OPTION ONE AND OPTION TWO, FROM YOUR PERSPECTIVE, GIVEN THE GOALS THAT YOU'VE HEARD, WHICH, WHICH IS THE PREFERRED WAY FROM AUSTIN ENERGY'S PERSPECTIVE, WE ARE PREPARED TO RECOMMEND OPTION TWO FOR YOU WITH THE QUALIFICATIONS THAT WE ARE STRESSED, LIQUIDITY WISE, UM, AND SO WE HAVE ANOTHER EMERGENCY.

UM, IT WILL ADD TO, UH, THE, THE CHALLENGES THAT AUSTIN ENERGY HAS, BUT WE RECOGNIZE FOR OUR CUSTOMERS AND IT'S A, IT'S A HUGE ECONOMIC BURDEN AND WE WE'RE TRYING TO SHARE SOME OF THAT RISK WITH THEM IN THE SHORT TERM, UH, THROUGH OPTION TWO.

SO WE, WE CAN RECOMMEND OPTION TWO REPORT BACK TO YOU, BUT I DO WANT TO KNOW IT DOESN'T COME WITHOUT A RISK.

THAT, THAT'S REALLY HELPFUL.

AND AS I UNDERSTAND IT FROM COUNCIL MEMBER CHAVAS QUESTIONS BEFORE YOU ARE GOING TO PREPARE BACKUP SO THAT WE COULD MOVE FORWARD WITH OPTION ONE OR OPTION TWO.

OPTION ONE YOU ALREADY HAVE, UM, OPTION TWO, YOU'RE GONNA PREPARE THE BACKUP FOR THAT AND YOU'RE ALSO GONNA PROVIDE US APPROPRIATE LANGUAGE TO, I, IT SOUNDS LIKE WE HAVE TO INITIATE CODE AMENDMENTS FOR THE TARIFF OR DISCUSSIONS ON THAT.

OR DO WE NEED TO BE DRAFTING THAT FOR THURSDAY? I KNOW I CAN DO OPTION TWO, GET THAT.

I DON'T KNOW WHAT HAPPENS, BUT I CAN MAKE IT HAPPEN.

UH, YOU'LL HAVE IT IN YOUR PACKET FOR THURSDAY.

UH, THE CHANGES TO THE LANGUAGE AND THE PSA, I'M, I'M A LITTLE HESITANT.

AGAIN, YOU, THERE'S THOSE UNINTENDED CONSEQUENCES BEFORE WE THINK THROUGH THINGS.

AND I'M NOT SAYING THIS SPIT, I DON'T MEAN TO SAY THAT YOU'RE TELLING US SPECIFICALLY WHAT THOSE ARE, BUT, BUT, UM, WHAT I DON'T WANNA HAVE HAPPEN IS THAT WE GET TO THREE MONTHS AND WE DIDN'T GIVE YOU THE DIRECTION AND WE CAN ADJUST ANYTHING.

UM, AND SO IT DOES SOUND LIKE THERE'S A CERTAIN AMOUNT OF TIME SENSITIVITY EVEN TO DO A SHORT RUN CHANGE IN THAT TARIFF SO THAT WE CAN MAKE CHANGES WITH THREE MONTHS EVEN IF WE HAVE TO DO A LONGER PROCESS TO FIGURE OUT WHERE WE'RE ULTIMATELY GONNA LAND FOR HOW WE DEAL WITH PSA ADJUSTMENTS.

BUT FROM WHAT YOU DESCRIBED, IT'S NOT LIKE OVERNIGHT WE CAN DO IT IF WE SEE MAJOR SHIFTS.

SO WE HAVE TO BE PREPARING SO THAT IN THE SHORT RUN WE HAVE A TOOL TO DO THAT.

PART OF THAT IS HAVING GOOD COMMUNICATION AND WE'RE, WE'RE COMMITTED TO COMMUNICATING WITH YOU WHAT'S GOING ON EACH MONTH, UH, TO HELP YOU MAKE DECISIONS ABOUT THIS AND COME UP WITH OPTIONS FOR YOU IN THE FUTURE.

I GUESS I'M STILL TRYING TO UNDERSTAND WHAT KIND OF MOTION WE NEED, IF WE NEED ANY TO, CAN YOU COME FORWARD WITH THAT BY THURSDAY AND NOT NECESSARILY THE ANSWER.

CAN APPROVE THAT SAYS IF WE CHOOSE OPTION TWO, THERE'S GREATER RISK, THIS IS WHAT YOU SHOULD PASS TO HELP MINIMIZE THAT RISK.

BUT, BUT COME FORWARD WITH SOMETHING WE

[02:05:01]

WHETHER IT'S AN AUTHORIZING AND ORDINANCE, IF IT IS GIVING ADMINISTRATIVE FLEXIBILITY, IF IT'S GIVING DIRECTION, UH, YOU KNOW, WE'VE CALLED FOR IT HERE IN THE DIRECTION THAT I'VE LAID OUT.

BUT, BUT IF RATHER THAN DOING THIS DIRECTION, YOU COULD DO SOME OF THIS NOW AND SOME OF THIS LATER.

UH, AND I THINK THAT'S BEST COMING FROM MAYOR AUSTIN ENERGY.

MAYOR, IF, IF I MAY, MY, UM, CHIEF OF STAFF IS ALREADY IN CONTACT WITH AUSTIN ENERGY TO WORK WITH, UM, WORK WITH THEM AND WITH LEGAL TO BRING FORTH A REVISED RECOMMENDATION FOR THIS ITEM ON THURSDAY.

COUNCIL, SO I, I DO HAVE, BUT THE, SO THE ANSWER TO THAT WAS YES.

AGAIN, MAYOR, UH, COUNCIL MEMBERS, THIS CONVERSATION HAS BEEN INCREDIBLY HELPFUL.

AND SO, UH, AS, UH, COUNCIL MEMBER KOOL MENTIONED, YOU KNOW, WE'LL TRY TO ENSURE THAT IF THERE ARE THINGS THAT WE CAN BRING FORWARD THAT ARE MORE THAN JUST THE DIRECTION THAT YOU OUTLINED HERE THAT ACTUALLY CAUGHT A FIGHT IN THE ORDINANCE, WE WILL, WE WILL DO THAT.

BUT WE'RE GONNA NEED SOME TIME TO THINK THROUGH THAT AND, AND BASED ON THIS DISCUSSION RIGHT NOW, OKAY.

CAN, CAN WE BE REALLY CLEAR? I HAVE A COUPLE QUESTIONS, THE ONES I HAD EARLIER, BUT I DO WANNA BE REALLY CLEAR, AS I MENTIONED IN MY BACK AND FORTH WITH MR. JIM BROSKI, I REALLY DID WANNA SEE AND WAS PREPARED TO MAKE AN AMENDMENT WITH RELATIONSHIP TO BULLET THREE ABOUT ADJUSTING, UM, PROVIDING FOR ADMINISTRATIVE AUTHORITY WITHIN THE PSA TO ADJUST BY SOMETHING LIKE 5% AS WELL AS, UH, CHANGING THE FREQUENCY AT WHICH WE ADDRESSED THE PSA RATE TO THREE MONTHS.

SO THOSE ARE THE TWO THINGS THAT I WOULD LIKE TO, UM, VOTE ON ON THURSDAY.

I'M, I'M FINE IF THE STAFF ARE BRINGING THAT FORWARD, BUT I WANTED SOME CLARITY ABOUT, YOU KNOW, IF I NEED TO INITIATE IT AND COUNCIL MEMBER POOL, I'M NOT SURE WHAT, WHAT ENTIRELY YOU'RE PLANNING ON INITIATING, BUT THOSE ARE THE TWO PIECES THAT I WOULD WANT TO, THAT I WOULD WANNA BE ABLE TO VOTE ON.

AND SO JUST TO KIND OF PUT A, PUT SOME CLARITY ON IT, IS THAT SOMETHING THAT THE STAFF CAN EITHER WORK WITH MY OFFICE TO PREPARE OR IS IT SOMETHING MANAGER THAT YOU FEEL COMFORTABLE PREPARING, UM, FOR THURSDAY? AND IF THERE'S A CHANGE AND 5% DOESN'T SEEM LIKE THE RIGHT ONE OR THREE OR WHATEVER THAT WE CAN CERTAINLY CONSIDER IT, BUT ARE THOSE TWO COMPONENTS SOMETHING THAT YOU FEEL CONFIDENT AT THIS POINT THAT YOU CAN DRAFT AND HAVE READY FOR US TO TAKE ACTION ON? OR WILL THEY REQUIRE INDIVIDUAL COUNCIL INITIATIVE ON THOSE TWO ITEMS? I THINK, AGAIN, HEARING FROM OUR AUSTIN ENERGY EXECUTIVES, I WANNA WORK WITH THEM AND LEGAL, UM, I FEEL THAT WE COULD GET THERE, BUT IF THERE'S SOMETHING IN THE NEXT 24 HOURS THAT WOULD PREVENT US FROM DOING THAT, UH, WE WILL CERTAINLY PROVIDE AN UPDATE.

PLEASE LET US ALL KNOW SO WE CAN ALL START WRITING OURSELVES.

YEAH, EXACTLY.

WHICH I WOULD SUGGEST TO IS NOT GOING TO BE AS GOOD AS WHATEVER IT IS YOU COME UP WITH AND, AND, AND, AND FURTHER NOT TO LIMIT NECESSARILY TO THOSE TWO THINGS, BUT TO ACTUALLY LOOK AT, CUZ IT MIGHT BE THAT YOU WANT TO TAKE A LOOK AT RESERVE LEVELS AS AN ALLOWABLE TRIGGER FOR YOU TO BE ABLE TO ACT OR BILL PERCENTAGE INCREASES SEPARATE FROM PSA CHARGES, OR I THINK YOU NEED TO, TO BUILD IN WHATEVER FLEXIBILITY YOU THINK YOU WILL NEED TO, TO HAVE US BE ABLE TO AVOID THE SITUATION.

I GUARANTEE WHATEVER YOU WRITE WILL BE BETTER THAN US TAKING OUT OUR PENCILS AND TRYING TO IMAGINE WHAT MIGHT BE THE RIGHT THING.

BUT WE, AND WORK WITH THEM, WITH THE, UH, FOLKS WHO ARE PART OF THE SUB QUORUM THAT I PUT TOGETHER, WHICH IS, UH, VICE CHAIR OF THE UTILITY OVERSIGHT COMMITTEE, WHICH IS COUNCIL MEMBER TOVO AND WITH MAYOR PRO TIM ALTER AND WITH YOU MAYOR ADLER.

THE FOUR OF US ARE IN THIS SUB QUORUM AND I LOOK FORWARD TO CONTINUING TO WORK ON THE LANGUAGE WITH CITY STAFF WITH THIS SUB QUORUM SO THAT WE CAN BRING A REALLY STRONG, UH, SOME REALLY STRONG LANGUAGE FORWARD FOR THE REST OF, UH, OUR DISCUSSION ON THURSDAY.

AND YES, COUNCIL MEMBER TOVA THE ITEMS THAT YOU'RE INTERESTED IN ABSOLUTELY WE CAN FOLD THOSE IN AND ANY OTHER AMENDMENTS AND LANGUAGE THAT, UM, FOLKS ARE INTERESTED IN WILL PUT UP A DRAFT OF THE, UH, REVISED RESOLUTION TO THE MESSAGE BOARD AS SOON AS WE'RE ABLE TO AND, UM, BE ABLE TO MOVE FORWARD ON THAT ON THURSDAY.

I THINK THOUGH I HEARD THE STAFF, I MEAN, I THINK I HEARD THE MANAGER SAYING THERE WILL BE AT LEAST THOSE TWO OPTIONS FOR US TO CONSIDER.

SO AGAIN, I'M GONNA DEFER TO OUR AND THEN YOU'LL LET US KNOW RIGHT AWAY AS NOT OKAY.

SO I, I, UM, IF I COULD PLEASE ASK THE QUESTIONS.

I JUST HAVE TWO QUESTIONS ABOUT THE PRESENTATION, SORRY ABOUT THAT TO BACKTRACK US HERE, BUT, UM, ON 14 I WANNA BE SURE I WANNA ASK A QUESTION ABOUT SLIDE 14, PLEASE IF WE COULD PULL BACK SLIDE 14.

[02:10:07]

I DON'T, I DON'T KNOW THAT I KNOW HOW TO DESCRIBE THIS EXCEPT TO JUST GO AHEAD AND POINT, BUT I, I WANT TO, UM, THIS MAY HAVE BEEN WHAT, WHAT YOU WERE ASKING FOR MAYOR, PRETEND, BUT I WOULD LIKE TO SEE, I WOULD LIKE TO SEE THE SECTION OF PSA.

SORRY TO, I'LL GIVE YOU A MARKER.

I CAN GRAB MAYOR HERE SENSORS.

UM, IF IT'S POSSIBLE, AND THIS, AGAIN, THIS MAY BE WHAT COUNCIL MEMBER, WHAT MAYOR PROTE ALTER WAS ASKING FOR, I'D LIKE TO SEE WHAT THESE BARS LOOK LIKE.

WELL THE, THE RED WOULDN'T HAVE IT BUT THE YELLOW, UM, WITH THE PSA CHARGE IN THOSE, IN THOSE FORTHCOMING YEARS, I ASSUME IT'S THIS LITTLE SEGMENT, IS THAT RIGHT? IT'S NOT SHIFTING IN YEARS TWO AND THREE.

IT'S THE SAME, THE BAR THE SAME IMMEDIATE AMOUNT.

EXACTLY.

SO THEN I GUESS I DON'T NEED TO SEE IT CUZ I DRAFTED IT ALREADY ON MY OWN.

BUT I THINK WHAT I, WHAT I JUST WANNA UNDERSCORE BECAUSE COUNCIL MEMBER KITCHEN AND OTHERS HAVE MENTIONED THIS AS WELL, I MEAN, THE REALLY BIG JUMP, THE REALLY BIG JUMP IS THE BASE RATE.

SO TO ME THAT'S WHERE ONE, I THINK OPTION TWO IS, IS WHAT I'M GONNA SUPPORT.

UM, BUT THE REALLY, THE REAL WORK HERE FOR US AHEAD I THINK IS FIGURING OUT WAYS TO MITIGATE THAT BIG GIANT JUMP BECAUSE IT IS REALLY A BIG ONE FOR A LOT OF OUR CUSTOMERS THAT THAT'S ABOUT $15.

AND THEN I HAVE A DIFFERENT QUESTION AND THE PSA IS 20, THE PSA IS NOT 20, THE PSA IS 1755 AND THE REGULARLY CHARGE FROM AIR CUT FROM STATE OF TEXAS IS 2 45.

CAN WE GET THAT UPDATED ON THESE CHARTS, BEN, BUT LESS THAN THOSE TWO THINGS? THAT'S WHAT I WAS ASKING FOR EARLIER.

YEAH, BUT I MEAN, AS I'M LOOKING AT WHAT IS CAUSING THIS INCREASE TO HEAR, SO I MEAN, IT WOULD BE GOOD TO HAVE THE REGULATORY CHARGE RIGHT NEXT TO THE PSA SO WE CAN GET A VISUAL SENSE OF IT.

BUT, BUT UM, I MEAN THERE IS A, THERE'S MAYBE AN OPTICAL ILLUSION HERE.

BUT THAT PSA, THE BASE RATE IS ALMOST THE SAME AMOUNT, I THINK ONE 17 AND ONE'S 15 SOMETHING.

UH, ON THE, UH, RATE BEING PAID.

BUT EVEN IF, I GUESS MY POINT IS EVEN IF WE SPREAD IT OUT, OH THAT'S STILL GONNA BE, THERE'S STILL GONNA BE A BIG INCREASE BECAUSE OF THAT BASE RATE.

I MEAN, IT'S NOT DIFFERENT FROM WHAT MY COLLEAGUES HAVE SAID.

YES MA'AM.

I JUST WANNA REALLY MAKE SURE THE PUBLIC HEARS THAT WE'RE, WE'RE LISTENING TO THEM, THAT THAT'S, UM, AN AREA OF OPPORTUNITY.

THE ONLY THING WE'RE CONTROLLING IS THE OVER UNDER COLLECTION.

THE PRICE OF POWER IN THE MARKET IS SOMETHING WE CAN'T CONTROL AND THAT'S WHAT'S BEING FLOWED THROUGH.

AND THEN I HAD A QUESTION FOR YOU ABOUT WHETHER THERE ARE, I DON'T KNOW THAT THIS IS ADVISABLE, BUT I JUST WANNA KNOW IF IT'S LEGAL, COULD WE HAVE, COULD WE DO OPTION ONE FOR SOME CUSTOMERS AND OPTION TWO FOR OTHERS? FOR EXAMPLE, COULD WE HAVE RESIDENTIAL CUSTOMERS, UM, COLLECT FROM OUR RESIDENTIAL CUSTOMERS OPTION ON A THREE YEAR PLATFORM, BUT FROM OUR COMMERCIAL CUSTOMERS, OPTION ONE.

AND I DON'T KNOW HOW THAT WOULD BREAK DOWN, BUT IT SEEMS TO ME, JUST BASED ON YOUR SCENARIOS, THAT A LOT OF THAT UNDER RECOVERY, I MEAN OUR BIGGEST DOLLARS IN TERMS OF UNDER RECOVERY MIGHT, UM, FROM THIS THERE'S ANY LARGER ISSUE.

IT'S AN ORDINANCE YOU SET.

UM, IS IT, IS IT PRACTICAL AND WOULD IT BE EASY TO MANAGE? I DON'T THINK SO.

UH, BUT I WOULD HAVE TO DO A LITTLE THINKING ON THAT AND TALK TO SOME OF MY STAFF ABOUT HOW, HOW WE WOULD DO THAT.

AND, AND BY PRACTICAL YOU MEAN BECAUSE OF OUR, THE WAY OUR BILLING SYSTEM WORKS.

SO IT WOULD JUST REQUIRE TOO MANY, TOO MUCH BILLING WORK TO GET IT SET, BE ABLE TO DO THAT.

THE COLOR OF MONEY IS, IT COMES IN THE DOOR, YOU KNOW WHICH ONE GOES CUZ THEN YOU'D HAVE RESIDENTIAL COULD INCUR A LARGER UNDERCOVER THEN OTHER CUSTOMERS YOU'D HAVE TO KEEP THAT SEPARATE ACCOUNTING BOOKS.

YEAH, THAT SOUNDS LIKE AN LOGISTICAL, IT GETS HUGE LOGISTICAL CHALLENGE.

YOU KNOW, I STILL NEED MORE INFORMATION AT THIS POINT.

CANNOT SUPPORT OPTION ONE OR OPTION TWO.

UM, I THINK, YOU KNOW, HAVING A MORE NUANCED CONVERSATION OF WHAT WE CAN DO FOR RESIDENTIAL CUSTOMERS THAT'S DIFFERENT FOR COMMERCIAL LARGE INDUSTRIAL IS STILL NEEDED.

I MEAN, WE'VE ONLY BEEN REALLY PRESENTED WITH TWO OPTIONS.

THERE'S NO ADDITIONAL PATHWAYS FOR US HERE AND WITH JUST THESE TWO THEN, I MEAN, I KNOW HOW I WILL VOTE ON JUST THESE TWO, BUT I WOULD LIKE FOR US TO CONSIDER OTHER ALTERNATIVES TO MINIMIZE THAT RATE SHOCK.

WE'RE STILL GONNA HAVE THAT HUGE INCREASE, UM, HAPPENING, UM, THIS YEAR.

AND THAT'S THE PART THAT I'M REALLY FOCUSED ON IS REDUCING THAT FIRST YEAR IMPACT.

THERE'S NOT A LOT OF GRADUAL IN YEAR TWO, YEAR THREE, UH, TO

[02:15:01]

MINIMIZE THE SHOCK.

UM, SO TO THE EXTENT THAT WE CAN PROVIDE MORE INFORMATION TO MY OFFICE, I'M HAPPY TO MEET WITH YOU ALL TOMORROW TOO, TO CONTINUE THE CONVERSATION.

THAT WOULD BE HELPFUL.

I THINK ALSO WOULD BE HELPFUL.

YOU MENTIONED THAT A LOT OF THE RESIDENTIAL CUSTOMERS USE BETWEEN 300, 400 KILOWATTS.

AND THEN IF WE KNOW THAT, THEN WHAT WOULD BE THEIR, WHAT IS THE ESTIMATED, THE PROJECTED, UH, RATE AMOUNT FOR THEM IN THAT CASE? THE, THE PASS THROUGH RATE AND, YOU KNOW, IN CONJUNCTION TO THE PROPOSED, UM, BASE RATE.

SO IT, IT'S ABOUT HALF.

SO THIS IS AT EIGHT 60, SO IF YOU USE 400, IT'S A LITTLE LESS THAN HALF.

SO YOU'D HAVE A NINE OR $10 INCREASE.

SO IT'S ALL PROPORTIONAL.

NINE OR $10 INCREASE ON THE PSA.

UM, I WAS JUST LOOKING AT THAT POSTING LANGUAGE AND IT DOES NOT SEEM THAT WE CAN CHANGE THE OVERALL TARIFF RULES IN PERPETUITY THIS WEEK.

UM, THERE MIGHT BE A LEGAL WAY FOR US TO CHANGE HOW IT'S GOVERNED FOR THIS YEAR.

UM, BUT I JUST THINK WE NEED TO GET SOME CLARITY ON, I THINK WE CAN PROVIDE DIRECTION OF WHAT WE WANT DONE, BUT IT, IT DOES SOUND LIKE WE, WE EITHER PROVIDE DIRECTION THAT IT, IF WE CHANGE SOMETHING, IT'S TEMPORARY FOR THIS YEAR.

OTHERWISE, I THINK WE'RE GOING TO HAVE TO UNDER THE POSTING LANGUAGE, SET UP ANOTHER, UM, HEARING, YOU KNOW, TO DO AN ORDINANCE AND, YOU KNOW, IF WE HAVE A CLEAR PATH FOR THAT, I WOULD LEAN TOWARDS SUPPORTING OPTION TWO AS RECOMMENDED SO THAT WE'RE MAKING SURE THAT WE ARE, UM, PROVIDING THOSE, THOSE, THOSE, THOSE, UM, GUARDRAILS FOR ANY OF THE RISK THAT WE'RE CREATING BY SPREADING, SPREADING IT OUT OVER THAT PERIOD OF TIME.

UM, BUT I DO THINK WE NEED TO GET THAT CLARITY OVER, OVER WHAT WE CAN LEGALLY DO ON THURSDAY.

BUT I DO NOT SUPPORT POSTPONING THIS.

UM, NONE OF US WANTS TO TAKE THIS ACTION AND RAISE THESE RATES, BUT WE'VE EXPENDED THESE COSTS, THE COSTS OF THE ARE HIGHER AND WE HAVE GOT TO MAKE SURE THE FINANCIAL STABILITY, UM, OF OUR, OF OUR UTILITIES, UM, THIS IS A STEP THAT WE NEED, WE NEED TO TAKE YES.

COUNCIL AND POOL.

YEAH, AND I WOULD JUST REITERATE THAT IF WE DELAY MAKING THIS DECISION, WE, THAT, THAT GAP IN THE FUNDING, THE 104 MILLION THAT WILL GO UP BY APPROXIMATELY 30 MILLION EVERY MONTH.

AND, AND THAT'S AN INCREASE THAT I'M UNWILLING TO ALLOW JUST TO SIT THERE AND NOT BE ADDRESSED.

I, I, I WISH THERE WERE MORE OPTIONS.

I DON'T KNOW WHAT THEY ARE.

UM, BECAUSE, BECAUSE THAT GAP IS THERE, THE UNDER COLLECTION IS THERE AND THE PSA IS DESIGNED TO RECOVER THAT UNDER COLLECTION, I THINK GOING FORWARD WE WILL BE MORE A JOINT IN ADDRESSING THESE SHIPS.

AND THAT'S PART OF THE TARIFF WORK THAT WE'LL BE WORKING ON.

UM, I IDEALLY, YOU KNOW, BEGINNING THIS YEAR AND CERTAINLY HAVING THAT, UH, ANY ADDITIONAL ADJUSTMENTS AND CHANGES TO IT NEXT YEAR AND GOING FORWARD.

BUT I THINK THE LESSONS THAT WE'RE LEARNING HERE ARE THAT THE RESILIENCY OF THIS ELECTRICAL UTILITY AND OUR ABILITY AS, UM, WITH THIS PUBLIC OWNERSHIP THAT WE HAVE IS WE STILL HAVE TREMENDOUS BENEFITS FROM OWNING OUR ELECTRIC UTILITY.

AND WE, UM, WE JUST NEED TO BE REALLY CLEAR EYE IN, UH, HOW INTERNATIONAL EVENTS AFFECT US, HOW THE STATEWIDE LEGISLATURE IS REGULATING OR NOT REGULATING PRICES, UH, AND THE TRANSMISSION OF THINGS LIKE THE PR UH, NATURAL GAS AND THE PRICES THAT WE'RE PAYING FOR THAT.

THERE IS A ROLE FOR THE STATE GOVERNMENT TO PLAY THERE.

AND AT THE END WE ARE HAVING TO RESPOND TO SOMETHING OVER WHICH WE DON'T HAVE MUCH CONTROL.

UM, AND, AND IT IS DIFFICULT.

I THINK OUR, OUR MAJOR JOB IS TO BE VERY CLEAR EYE AND, UH, UH, EDUCATE THE PUBLIC AS TO WHAT'S GOING ON AND WHY IT'S HAPPENING AND THE STEPS THAT WE ARE TAKING IN A RESPONSIBLE WAY TO, UH, ADDRESS THE GAP, THE UNDER COLLECTION, AND TO BUFFER THAT, UH, THAT COST INCREASE AND THEN TO WORK MIGHTILY TO ENSURE THAT IT DOESN'T HAPPEN IN THE FUTURE.

ALL RIGHT.

I THINK THESE THINGS ARE KIND OF, UH, LAID OUT.

I WOULD LIKE TO KNOW THE ANSWER TO NUMBER 69.

I MEAN TO THE, I'M SORRY, TO NUMBER POINT NUMBER TWO.

UH, CAUSE I THINK WE'RE ALL LOOKING AT THE PSA AND THE CONTEXT OF WHAT THE OVERALL IMPACT ON RATE PAYERS IS GOING TO BE.

SO HAVING YOUR RECOMMENDATION ON THAT MANAGER, UH, IS WHETHER THAT'S SOMETHING THAT WE COULD CONSIDER APPROPRIATELY OR NOT AND WHAT IMPACT THAT WOULD HAVE,

[02:20:01]

UM, I THINK A, B AND AND C WOULD LIKE RESPONSE TO, TO THOSE THINGS TOO.

I MEAN, TO THE DEGREE WE SH THERE'S SOMETHING ELSE WE COULD DO HERE TO, TO BETTER INITIATE IT.

I'D LIKE YOU TO TAKE A LOOK AT THOSE THINGS AS WELL.

MR. BROSKI.

AND AUSTIN ENERGY STAFF.

LET'S TAKE A A LOOK AT THE SCHEDULE, UH, ISSUE.

AND, UM, MAYOR PROTE, THANK YOU FOR TALKING TO HER OFFICE.

UH, YOU'VE BEEN TO MY OFFICE SEVERAL TIMES, LIKE YOU'VE BEEN IN ALL THE OFFICES, UH, SEVERAL TIMES DEALING AND THAT, SO COLLECTIVELY, UH, WE ALL THANK YOU FOR THE TIME YOU'RE SPENDING WITH, WITH ALL OF US COLLEAGUES.

[Dl. Schedule for Remaining 2022 City Council Meetings and Work Sessions.]

UH, IT WAS AS POSTED, UM, RIGHT NOW WE'RE SCHEDULED TO HAVE A MEETING ON NOVEMBER 17TH.

IT SEEMED AS IF THE COLLECTIVE DESIRE OF THE COUNCIL WAS TO NOT HAVE A MEETING ON NOVEMBER 17TH BECAUSE SO MANY PEOPLE IN THE COUNCIL WANT TO NOT BE HERE AND WANT TO BE AT THE CITY MEETING.

UH, THE QUESTION THEN IS, UH, IS THAT TRUE? IF THAT'S TRUE, THEN UH, HOW DO WE RESCHEDULE THAT? DO WE RESCHEDULE THAT? I THINK THE CONSENSUS SEEMS TO BE, TO RESCHEDULE THAT.

UH, ALSO POSSIBLY RESCHEDULE IN A WAY THAT IT COULD BE A DELIBERATIVE MEETING RATHER THAN GOING FOUR WEEKS WITHOUT ONE.

UM, WE COULD, UM, UH, SCHEDULE A A CALLED MEETING SOMETIME, UM, UM, FOR THAT MEETING.

UH, ON THE 17TH, ONE OPTION IS TO, UH, HAVE IT, UH, ON UH, UH, NOVEMBER 9TH, WHICH IS THE FOLLOWING WEEK.

THAT'S THE DAY AFTER THE ELECTION.

UH, AND, UH, UH, AT LEAST ONE MEMBER ON THE DAY IS SAYING, PLEASE DON'T HOLD A MEETING THE DAY AFTER THE, UM, UH, ELECTION.

UM, UM, BUT I THINK THAT MAY BE ONE PERSON I'M AVAILABLE THAT DAY, BUT WOULD NEED TO, TO LEAVE MID-AFTERNOON.

UH, THE 10TH IS ALSO, UH, AN AVAILABLE DAY.

I'M NOT HERE ON THE 10TH, BUT THAT'S, UH, THURSDAY OF THAT WEEK THAT DOES HAVE THE COUNCIL MEETING THREE WEEKS IN A ROW.

UH, WHICH IS NOT THE PREFERRED, UM, UH, SEQUENCING FOR STAFF, UH, TO HAVE THREE BACK TO BACK TO BACK MEETINGS.

UM, IT COULD BE ALSO THE 15TH, WHICH IS THE DAY WE WOULD'VE HAD WORK SESSION IF WE HAD HAD A MEETING ON THE 17TH.

UH, THE 15TH.

UM, UH, HAS EVERYONE HERE EXCEPT FOR ME, UH, CAUSE I'M AGAIN AT THAT COP 27 MEETING, I'D BE OKAY WITH HAVING THAT AS A DELIBERATIVE MEETING.

UH, I WOULD ASK THE COLLEAGUES INDULGENCE THAT, UH, IF SOME OF THE ITEMS WOULD HAVE BEEN CALLED THAT DAY THAT ARE IN CONTROVERSY THAT I AM NOT THERE FOR.

I'D LIKE THAT PUSHED OFF TO THE FIRST.

WE MIGHT KNOW THAT WHEN WE WERE CLOSER, UH, I THINK THINGS LIKE THE COMPATIBILITY ORDINANCE COULD CONCEIVABLY COME BACK IN MID-NOVEMBER, OR THE RESIDENTIAL AND COMMERCIAL AREA COULD COME BACK IN THAT PERIOD OF TIME THOSE THINGS WERE WORKED OUT.

THEY'D BE VOTED IF THOSE THINGS ARE GOING TO BE, UH, TOUGH AND NEGOTIATED.

AND I'D LIKE THOSE THINGS HELD BACK.

I WOULD ASK UNTIL THE MEETING IN DECEMBER.

BUT THE 15TH IS AN OPTION.

UH, UH, THE FOLLOWING WEEK OF COURSE IS, IS THANKSGIVING AND THE WEEK AFTER THAT IS OUR REGULARLY SCHEDULED, UH, COUNCIL MEETING.

SO I THINK REALLY WHAT YOU'RE LOOKING AT IS THE, THE NINTH, THE 10TH, OR THE, UM, FIFTH 15TH.

THE NEXT COUNCIL MEETING WE HAVE POSTED IS ON DECEMBER 1ST.

WORK SESSION IS ON NOVEMBER 29TH.

MY RECOMMENDATION, UH, TALKING TO, TO THE CLERK AND TO STAFF IS THAT WE DO A SPECIAL CALL THAT WEEK ON WEDNESDAY.

SO WE HAVE A WORK SESSION ON TUESDAY AND WE HAVE TWO DAYS POTENTIAL FOR COUNCIL MEETINGS ON WEDNESDAY AND THURSDAY.

THAT WOULD BE THE 30TH AND THE FIRST, UH, IN CASE WE HAVE A LOT OF THINGS THAT WE NEED TO TAKE CARE OF, WE COULD EITHER PUT THE AGENDA ON THE 30TH AND THEN JUST DO A CARRYOVER ON THE THURSDAY THE FIRST.

UH, WE COULD CONCEIVABLY SET TWO DIFFERENT AGENDAS ON THE 30TH AND ON THE FIRST, UH, SO THAT SPEAKERS KNEW WHICH DAY TO COME TO AND NOT POTENTIALLY COME TO SPEAK ON TWO DAYS, BUT WE COULD WORK OUT THE LOGISTICS OF THAT.

BUT IT WOULD BE MY RECOMMENDATION SINCE WE'RE GONNA BE THERE THAT WE HOLD THE WEDNESDAY OF THAT WEEK, WHICH WOULD BE THE 30TH AND CALL A MEETING.

THEN THE FOLLOWING WEEK IS THE LAST MEETINGS OF THE YEAR.

UH, AND AGAIN, I WOULD PROPOSE THE, UH, THE, THE SAME THING THAT, THAT FOLLOWING WEEK.

WE ALSO KEEP OUR CALENDARS OPEN SO THAT WE COULD DO A SPECIAL CALL ON THAT WEDNESDAY AS WELL.

WORK SESSION ON TUESDAY.

[02:25:02]

WE HAVE THE REGULARLY SCHEDULED MEETING ON THURSDAY, BUT TO KEEP WEDNESDAY OPEN, I'VE ASKED THE, THE MANAGER TO TAKE A LOOK AT, UM, UH, THE THINGS THAT THE STAFF WILL BE BRINGING FORWARD.

UH, BUT JUST TO GIVE US THAT, UH, ADDITIONAL TIMES.

THAT'D BE MY RECOMMENDATION THERE.

UH, WE DO HAVE THE AUSTIN, UM, ENERGY BASE RATE, UM, MATTERS, UH, BEING SCHEDULED DURING THIS SAME PERIOD OF TIME.

I WAS LOOKING AT, UH, CHAIR POOLS, UH, RECOMMENDATION.

UH, SHE WAS RECOMMENDING THAT WORK SESSION AND PUBLIC HEARING ON THE BASE RATE, UH, BE SET FOR NOVEMBER 2ND.

CAN'T, UH, OR NOVEMBER 9TH AND POTENTIALLY NOVEMBER 15TH IF IT WAS NEEDED WITH DELIBERATION BEING ON DECEMBER 1ST AND, UH, DECEMBER 8TH IF NEEDED.

UM, IF WE DID THAT WEDNESDAY, THURSDAY, WEDNESDAY, THURSDAY, WE WOULD HAVE IT AVAILABLE TO BE, TO ACTED ON, ON BOTH WEDNESDAY AND THURSDAY.

NOT JUST THAT, UH, THURSDAY, UH, WE WERE ALREADY GETTING TOGETHER AS A COUNCIL ON NOVEMBER 30TH, WHICH IS THE DAY BEFORE THE FIRST WE HAVE AN ATP JOINT MEETING.

UH, THAT'S AN HOUR AND A HALF OR TWO HOURS THAT AFTERNOON.

SO WE WERE ALL, ALL HERE, UH, AS PART OF THAT.

SO, THOUGHTS? YES.

COUNCIL MEMBER KELLY.

UM, I KNOW AT PREVIOUS COUNCIL MEETINGS I HAD EXPRESSED INTEREST IN ATTENDING THE NATIONAL LEAGUE OF CITIES, BUT, UM, AN OPPORTUNITY CAME UP THE, UM, FRIDAY OF THAT WEEK.

SO I WILL NOT BE GOING TO NATIONAL LEAGUE OF CITIES AND I AM AVAILABLE ON THE 17TH THAT, THAT MAKES ANY DIFFERENCE IN WHAT WE'RE TALKING ABOUT TODAY.

I CAN ARRANGE, I'M FLYING OUT ON THAT DAY, BUT I CAN ARRANGE TO DO IT AS LATE AS POSSIBLE TO ATTEND THE MEETING ON TUESDAY.

HEATHER TOGO.

I HAD A, I I DID WANNA TALK ABOUT 1117 CUZ WE HAD ALSO TALKED ABOUT THE OPTION OF JUST PASSING THINGS ON CONSENT IF THERE WERE THINGS THAT WERE NON-CONTROVERSIAL THAT COULD JUST GET DONE ON THE 17TH.

SO I'D BE INTERESTED IN KNOWING, ESPECIALLY WITH COUNCIL MEMBER KELLY'S WEIGHING IN HOW MANY PEOPLE ARE ABSENT.

I DO WANNA POINT OUT, UM, THAT I, I AM NOT AVAILABLE ON 11 TWO.

I THINK THAT'S ONE OF THE WORK SESSIONS THAT COUNCIL MEMBER POOL HAS SUGGESTED FOR THE BASE RATE POSSIBLE PUBLIC HEARING.

UM, I ALSO WANTED TO SUGGEST, AND I I I THINK THIS IS ALL GOOD.

THANK YOU FOR GOING THROUGH ALL OF THESE OPTIONS.

I THINK THERE'S SOME GOOD ONES HERE AND I'M AVAILABLE AND, AND WILL MAKE MYSELF AVAILABLE ON ALL OF THOSE DAYS EXCEPT FOR 11 TWO.

I ALSO WANNA SUGGEST THAT 1215 MIGHT BE SOMETHING WE WANNA PENCIL IN.

YOU KNOW, WE'VE GOT, WE'VE GOT, UM, PRETTY BIG TRANSITION WITH THREE OF US LEAVING COUNCIL.

I THINK IT IS.

IF YOU LOOK BACK AT THE LAST BIG TRANSITION, HOW LATE THAT LAST DECEMBER MEETING WENT.

IT WAS LIKE, I DON'T KNOW, A THREE IN THE MORNING, UM, MEETING.

AND, AND I DON'T KNOW THAT ANY OF US WANT THAT TO BE OUR LAST, OUR LAST, UH, TIME AS THIS COUNCIL ALTOGETHER.

SO I WOULD REALLY SUGGEST, STRONGLY SUGGEST THAT WE PENCIL IN 1215 WITH THE OPPORTUNITY TO CANCEL IT IF WE DON'T NEED IT.

WE MIGHT ALSO WANNA BE THOUGHTFUL ABOUT, YOU KNOW, I'M SURE THOSE OF US WHO ARE LEAVING MIGHT WANNA MAKE SOME REMARKS.

UM, AND, AND THAT TOO IS GONNA TAKE PROBABLY A LITTLE BIT MORE TIME THAN WE USUALLY HAVE IN OUR COURSE OF OUR REGULAR COUNCIL MEETING.

AND I DON'T KNOW IF THAT, IF WE WANNA DO THAT ON A DIFFERENT DAY OR HAVE SOME KIND OF, YOU KNOW, DESIGNATED OUR CEREMONY TO HANDLE THAT.

BUT I JUST THINK WE SHOULD PLAN FOR IT, UM, IN A VER IN A REALLY THOUGHTFUL WAY.

OTHERWISE WE'RE GONNA BE IN THE SAME KIND OF POSITION WE ARE WHEN WE ALL HAVE LOTS OF STUFF WE WANNA TALK ABOUT ON THE CONSENT AGENDA, WHERE WE'RE, YOU KNOW, GOING ON AND ON IN OUR COMMENTS.

SO 11 SEVEN BACK TO 1117.

IS THAT, HOW MANY PEOPLE NOW ARE WE MISSING? WELL, I THINK ANY CLARIFICATION FROM MCKENZIE? CUZ YOU, YOU STILL HAVE SOMETHING? THE 17TH IS JUST NOT OUT OF TOWN.

NO, ACTUALLY IT'S THE 18TH THAT I HAVE SOMETHING, WHICH IS WHY I NEED TO STAY HERE.

OKAY, SO HOW MANY PEOPLE DO WE HAVE OUT ON THE 17TH? AND WOULD IT BE AN OPTION TO, WOULD IT BE AN OPTION? AND ALSO WOULD IT BE A VALUE, UM, IF THOSE OF US WHO ARE IN TOWN, I, I THOUGHT IT WAS FOUR PEOPLE, SO THAT WOULD BRING IT DOWN TO THREE.

THERE WAS POTENTIALLY SIX.

UM, UM, BUT SOME PEOPLE WERE UNCERTAIN OR COULD GO BOTH WAYS.

MM-HMM.

YEAH, I, I I WILL BE OUT OF TOWN ON THE 17TH AND I WOULD REALLY PREFER TO BE ABLE TO VOTE ON CONSENT ON A SEPARATE DAY, WHETHER IT BE TUESDAY OR WEDNESDAY, ESPECIALLY GIVEN THE HIGH NUMBER OF INDIVIDUALS THAT ARE STILL OUT.

MM-HMM.

AND I'LL BE OUT ON THE 17TH ALSO.

I'M GONNA BE OUT FROM THE 15TH, I BELIEVE THROUGH THE 18TH.

SO I'M ACTUALLY NOW GONNA BE HERE ON THE 17TH, BUT I COULD RUN A MEETING ON THE 15TH OF THE MAYORS OUT OF TOWN ON CONSENT.

IS THAT A PROBLEM? SO HOW MANY DO WE HAVE OUT ON THE 15TH IF WE DID THE WORK SESSION ON, IF WE DID THE WORK SESSION ON THE 15TH AND HAD CONSENT AND NON CONTROVERSIAL OTHER KINDS OF THINGS, IT WE LOSE COUNCIL MEMBER VILLA, DO WE AND WE LOSE YOU?

[02:30:01]

SO THEN WE WOULD JUST BE WITHOUT, JUST WITHOUT ME.

WITHOUT YOU.

AND IF IT'S CONSENT, I'M FINE WITH THAT.

I WOULD ALSO BE FINE IF YOU WANTED TO DO SOME DELIBERATIONS AS LONG AS I GOT TO LOOK AT THE AGENDA AND ASK IF SOMETHINGS COULD BE CARRIED OVER TO THE FIRST.

THAT SEEMS LIKE A PRETTY, PRETTY GOOD OPTION.

JUST KIND OF KEEPS US MOVING FORWARD ON THE STUFF THAT NEEDS TO KEEP MOVING.

I'LL BE HERE ON BOTH DAYS, SO WHICHEVER WAY WORKS COUNT ME IN FOR THOSE.

OKAY, SO LET'S GO AHEAD.

GO AHEAD.

JUST TO REMIND YOU THAT YOU'RE GONNA HAVE TO CANVAS THE ELECTION AND POSSIBLY ORDER A RUNOFF.

AND WE'RE THINKING THAT THE BEST DAY TO DO THAT WILL LIKELY END UP BEING NOVEMBER 21ST.

NOVEMBER 21ST.

WOULD THAT BE A SPECIAL CALL? COULD YOU DO, COULD WE DO IT ON THE 15TH? WE ONLY NEED A COUPLE PEOPLE, RIGHT? I DON'T THINK WE CAN DO IT ON THE 15 BECAUSE WE WON'T HAVE ALL THE INFORMATION BACK FROM THE COUNTIES.

HOW MANY PEOPLE DOES IT TAKE TO, TO CANVAS AND YOU ONLY NEED TWO TO CANVAS, BUT YOU DO NEED TO ORDER THE ELECTION.

YOU WILL NEED A NEED A CORE, YOU HAVE AN AUDIT AND FINANCE COMMITTEE MEETING ON THE 21ST.

WE HAVE AUDIT AND FINANCE ON THE 21ST AND KEPT METRO BOARD MEETING THAT AFTERNOON.

BUT WE COULD DO, I MEAN WE COULD CANVAS THE ELECTION AT THE BEGINNING.

I MEAN IF WE ONLY NEED TWO OF US, THERE WOULD BE AT LEAST THREE OF US HELPING AT AUDIT AND FINANCE.

SO LET'S, LET'S, LET'S DO THIS, WHAT I CALL SPECIAL CALLED MEETINGS AND SET THEM ON THE AGENDA FOR 11 30, 12 7, 12 15, AND 1121.

LET ME DO THAT IN ORDER.

MAYOR.

BE BEFORE YOU, UM, DECIDE ON DECEMBER 15.

UM, THAT IS A FULL BOARD MEETING FOR THE, UH, EMPLOYEE RETIREMENT SYSTEM.

UM, AND I WAS GOING, SO IF WE DO THAT, IT MAY NEED, OUR SPECIAL CALL WOULD NEED TO BE IN THE AFTERNOON OR POTENTIALLY ON WEDNESDAY THE DAY BEFORE.

OKAY, LET'S DO THIS CUZ THAT WAS A NEW DATE.

SO LET ME, LET'S HOLD OFF AND LET US WORK WITH THE CLERK TO CANVAS PEOPLE THAT WEEK.

BUT I UNDERSTAND YOUR POINT.

UH, BUT AT THIS POINT I THINK THE CONSENSUS, AND OBVIOUSLY WE CAN'T MAKE DECISIONS AT OUR WORK SESSION, SO THIS NEEDS TO COME BACK TO COUNCIL.

UH, BUT IT LOOKS AS IF WHAT WE WOULD DO IS WE WOULD HAVE A SPECIAL CALL THAT'S SET FOR NOVEMBER 15TH.

UH, AND THAT, UH, GIVE YOU FLEXIBILITY TO BE ABLE TO TAKE ACTION WITH THE UNDERSTANDING THAT ONE MEMBER CAN PULL THINGS OFF TO, TO THE, TO THE FIRST.

IT WOULD ALSO HAVE US DOING SPECIAL CALLED MEETINGS ON THE WEDNESDAY BEFORE THE THURSDAY ON NOVEMBER 30TH AND ON DECEMBER, I THINK IT'S THE SEVENTH, UM, THOSE TWO DAYS.

SO THOSE ARE THREE DAYS THAT WOULD BE SET UP.

UM, LET'S, UM, LET ME WORK WITH THE CLERK'S OFFICE AND THE STAFF WITH RESPECT TO SAYING WHAT DAY THE WEEK OF 1215 MAKE SENSE TO ASK PEOPLE TO HOLD ON THEIR CALENDARS AND WE CAN MAKE THAT DECISION AS WE GET, UH, AS WE GET CLOSER.

QUICK QUESTION.

UM, WITH THE TRI PARTY PROJECT CONNECT MEETING HAPPENING, UM, I KNOW ON MY CALENDAR AT LEAST IT LOOKS LONGER THAN TWO HOURS, SO MAYBE, MAYBE YOU HAVE A LITTLE MORE CLARITY ON HOW LONG THAT WOULD BE, BUT I'M WONDERING IF IT MIGHT MAKE SENSE FOR US TO TRY TO DO A THURSDAY AND FRIDAY MEETING INSTEAD, JUST BECAUSE AFTER OUR WORK SESSIONS, WE USUALLY NEED THAT WEDNESDAY TO PREP FOR SOME OF THE VOTES, AND THAT DOESN'T REALLY ALLOW US A LOT OF TIME TO FINALIZE AMENDMENTS OR GET LAST MINUTE QUESTIONS ANSWERED.

I'M NOT HERE ON THE SECOND ON THAT FRIDAY.

MARY, YOU DIDN'T MENTION THE 21ST IN THAT LIST, THE 21ST AND THEN WE'LL ALSO DO THE 21ST TO BE ABLE TO CANVAS THE, UH, ELECTION THAT'S THE MONDAY OF THANKSGIVING WEEK.

AND THEN, UH, DO PEOPLE HAVE A PREFERENCE WITH RESPECT TO AUSTIN ENERGY, UM, PUBLIC HEARING ON THE SECOND AND THE NINTH? WELL, I HAD NOTED I'M NOT AVAILABLE ON THE SECOND.

KATO'S NIGHT HERE ON THE SECOND.

I'M NOT HEARING AND MAYOR, I DON'T KNOW THAT WE'RE LOOKING AT TAKING ANY ACTION ON THAT DAY.

THAT IS THE INTENTION THERE IS TO HEAR FROM THE COMMUNITY.

BUT IT SOUNDS AS IF, UH, NOVEMBER 9TH IS THE KIND OF THE PREFERRED DAY THEN THE SECOND THAT'S A PUBLIC HEARING.

I'M, I'M NOT HERE ON, ON IT DEPENDS ON WHEN YOU SAID IT ON THE NINTH.

I'M LEAVING THE LATE AFTERNOON ON THE NINTH, SO I COULD ATTEND AT LEAST PART OF THAT DAY ON THE NINTH, BUT I WOULD BE FINE WITH THE PUBLIC HEARING HAPPENING IN MY ABSENCE IF I NEED TO LEAVE, UH, EARLY.

[02:35:01]

DOES ANYBODY FEEL DIFFERENTLY ABOUT NOVEMBER 9TH? YOU MEAN? OH, NOVEMBER 9TH OR DECEMBER 9TH.

NOVEMBER 9TH FOR PUBLIC HEARING ON THE END WORK SESSION ON AUSTIN ENERGY BASE RATE.

THAT'S FINE.

OKAY, SO THAT LOOKS LIKE THE DATE THERE.

UM, IT'S ALSO BEEN ASKED THAT PEOPLE TRY TO KEEP NOVEMBER 15TH OPEN, BUT THAT'S OBVIOUSLY A DAY THERE'S GONNA BE A SET MEETING.

SO WE COULD ALWAYS PUT THAT ON THE AGENDA IF WE NEEDED TO, UH, COUNCIL MEMBER POOL ON THE, UH, MEETING ON THE 15TH THAT WERE OTHERWISE SETTING SO THAT THE COUNCIL COULD DELIBERATE AND TAKE PUBLIC TESTIMONY THAT DAY AS WELL.

UH, YES, MAYOR PROTE.

SO I JUST WANNA FLAG THAT ON DECEMBER 13TH OR SET FOR AN AUDIT IN FINANCE COMMITTEE MEETING.

AND WE NEED TO EITHER HAVE THAT MEETING OR MAKE IT A SPECIAL CALL.

THAT IS THE DAY THAT WE'LL BE GETTING THE INDEPENDENT AUSTIN WATER, UM, REPORT BACK AS OF THE CURRENT SCHEDULE.

UM, SO IF YOU'RE, IF YOU, YOU WANNA MAKE THAT TIME AVAILABLE REGARDLESS, BUT, UM, WE COULD DO THAT DURING WORK SESSION, WHICH IS, YOU KNOW, THE MAIN THING IS THAT, UM, REPORT AND I THINK OUR WHOLE MEETING WILL BE ON THAT REPORT AND IT IS A VALUE TO THE WHOLE COUNCIL, BUT, UM, JUST AS YOU'RE, AS YOU'RE PLANNING TIMING WISE FOR THINKING ABOUT THINGS.

AND THEN I WOULD JUST ADD THAT, YOU KNOW, AS WE ADD THESE EXTRA MEETINGS TO MAKE THINGS SMOOTHER, UM, I DON'T WANT THE MESSAGE TO BE TO STAFF TO FILL THESE LIKE MEETINGS UP WITH MORE AND MORE ITEMS JUST TO FILL THEM UP BECAUSE THEY'RE, WE'RE HAVING THEM MEETING THAT WE SHOULD STILL BE SOMEWHAT JUDICIOUS BECAUSE I THINK IF WE WERE ADDING THE EXTRA MEETING IN DECEMBER, YOU KNOW, TO MAKE SURE WE CAN TAKE CARE OF BUSINESS THAT REALLY NEEDS TO BE TAKEN CARE OF BEFORE, UM, WE START WITH THE NEW COUNCIL.

UM, BUT JUST TO BE CAREFUL THAT WE DON'T END UP WITH THE 15TH NOW BEING THE MEETING THAT ENDS UP TAKING FOREVER, UM, IS WHAT I, AND I'M NOT SURE WHAT THE RIGHT BALANCE IS WITH THAT, BUT I JUST, YOU KNOW, FOR, WE'RE NOT ADDING THE MEETING FOR THE 15TH TO BECOME THE GIANT MEETING, WE'RE ADDING THE MEETING POTENTIALLY, UM, TO PROVIDE US THE, THE BREATHING, THE BREATHING ROOM FOR THAT.

YEAH, WELL STATED LIKE I'M, YEAH, THAT'S A VERY GOOD POINT.

I THINK FRONT LOAD THOSE THINGS LIKE NOT STRETCH 'EM OUT WOULD BE MY RECOMMENDATION.

AND THEN I'D ONE OTHER REQUEST TO THE EXTENT POSSIBLE IF WE CAN HAVE THE AGENDA THAT'S HAPPENING THE WEEK AFTER THE SIPPING POSTED, PERHAPS SOMEWHAT EARLIER, UM, THAN JUST THE TWO WEEKS BEFORE SO THAT UM, OUR STAFF DON'T HAVE TO DO ALL OF IT OVER THANKSGIVING, ESPECIALLY IF WE'RE GONNA BE MEETING TUESDAY, WEDNESDAY, AND THURSDAY.

I THINK THAT WOULD BE HELPFUL.

ALL GOOD POINTS.

THANK YOU KA KELLY.

UM, I WAS JUST WONDERING IF YOU OR YOUR STAFF COULD POST THE FINALIZED DATE THAT WE ALL DISCUSSED ON THE MESSAGE BOARD SO THAT WE WOULD ALL HAVE THEM TO REVIEW.

YES, WE'LL DO THAT.

UH, KAMAR TOVA, JUST UM, I'M NOT SURE.

I THINK THERE MAY BE A MEETING THAT'S BEING DISCUSSED RIGHT AROUND 12 NINE.

AND JUST AS A REMINDER, UM, SEVERAL OF US SERVE ON THE JOINT SUBCOMMITTEE WITH A IS D SO IT'S NOT A, IT'S NOT A TOTAL IMPEDIMENT, IT WOULD JUST MEAN IF, IF WE HAVE A MEETING ON THAT DAY, WE WOULD PROBABLY NEED TO TAKE A BREAK AND GO TO JOINT SUB.

AND RIGHT NOW I DON'T THINK WE'VE TALKED ABOUT ANYTHING ON 12 NINE.

UH, WE HAD TALKED ABOUT HAVING 12 EIGHT I THINK IS WEDNESDAY IS THURSDAY.

WE HAD TALKED ABOUT 12 SEVEN.

GOT IT.

I WOULD PREFER NOT TO HAVE A THIRD COUNCIL MEETING IN DECEMBER.

STAFF WOULD PREFER WEDNESDAY, THURSDAY THAN THURSDAY FRIDAY AS WELL.

UH, YES AT COUNCIL HARPER MADISON.

THANK YOU MAYOR.

I WAS GONNA PROPOSE A 12 TWO, BUT I THINK I HEARD ONE OF MY COLLEAGUES SAY THEY'RE NOT AVAILABLE FOR TWO.

CAN YOU TELL ME HOW MUCH ON THE PROPOSED 1130 DATE, IT DIDN'T FEEL LIKE THERE WAS ANY DELIBERATION ABOUT THAT ONE.

IS IT SAFE TO ASSUME THAT EVERYBODY WAS COMFORTABLE WITH MOVING FORWARD ON THE 1130 DATE? I THINK SO.

I'M NOT HERE ON, ON DECEMBER 2ND, UH, 1130, WHICH IS THAT WEDNESDAY, WE ALL HAVE ON OUR CALENDARS THE JOINT ATP MEETING.

SO THAT WAS ALREADY SOMETHING THAT WAS, THAT WAS ON OUR CALENDARS FOR THAT DAY.

SO THE MEETING WOULD BE SET FOR WHEN THAT ATP MEETING WAS NOT BEING HELD.

IS THAT OKAY? DOES THAT WORK? NO, NO, NO.

THAT DEFINITELY WORKS.

I MEAN, IN MY MINDS I, I'M GUESSING THERE'S SOME STAFF THAT WOULDN'T BE AVAILABLE.

I'M JUST TRYING TO FIGURE OUT WHEN IT WAS SCHEDULED FOR, IF WE CAN'T DO THE TWO DAY MEETING, WHICH I THOUGHT WAS THE PLAN ONE AND TWO THEN WHAT, WHAT IS THE PLAN HERE? 30 30 AND FIRST WE STILL DO THE TWO DAY MEETING.

WORK SESSION AS SCHEDULED IS ON THE 29TH.

THE COUNCIL MEETING IS ON THE FIRST AS ALREADY SCHEDULED AND NOW WE'RE GONNA ADD THE 30TH, THE WEDNESDAY IN BETWEEN THOSE TWO DAYS.

[02:40:02]

IT JUST FEELS LIKE THAT THIRD WEEK OF DECEMBER IT, WE GET A LOT OF DISTRICT EVENTS THAT COME UP AND I, YOU KNOW, WITH, UM, IN THE COMMUNITY.

SO TO THE EXTENT IF WE HAVE TO HAVE A THIRD COUNCIL MEETING IN DECEMBER, IF WE CAN FRONT LOAD THAT ON THE FRONT END OF THE WEEK, UH, MONDAY, TUESDAY, UM, THAT WOULD BE HELPFUL.

BUT I WOULD PREFER NOT TO HAVE A THIRD MEETING IF, IF POSSIBLE.

WE'LL WORK WITH THE CLERK'S OFFICE TO, TO TO, AND THE STAFF TO PULLS COUNCIL ON THAT.

YEAH, WE'VE LEFT THAT OPEN.

WE'LL COME BACK AND DISCUSS THAT ISSUE.

I CERTAINLY UNDERSTAND THE CONCERN AND, YOU KNOW, WE ARE, WE ARE CANCELING A MEETING THAT'S ON OUR CALENDAR, WHICH IS ONE REASON WHY I'M GETTING A LITTLE CONCERNED ABOUT IT ALSO, CUZ I KNOW THERE ARE JUST SEVERAL BIG THINGS COMING BACK THAT SEVERAL OF US HAVE HAD AN OPPORTUNITY TO INITIATE OR BE INVOLVED IN.

AND TO THE EXTENT THAT, THAT HAVING THAT ADDITIONAL MEETING ALLOWS US TO FINISH UP SOME OF THAT WORK, I WOULD JUST ASK FOR THAT CONSIDERATION.

BUT WE'RE NOT COUNSELING, WE'RE JUST REMOVING THAT MEETING TO ANOTHER DAY.

UM, BUT IT WILL, IT WILL LIKELY END UP SHIFTING QUITE A, SOME OF THAT WORK TO OTHER MEETINGS JUST BECAUSE THERE WILL, UM, YOU KNOW, IN, IN THE COURSE OF ANY COUNCIL MEETING, THERE ARE LOTS OF ITEMS ON CONSENT THAT GET PULLED AND MOST OF OUR IFCS AND SO IT, IT, IT WILL HAVE THE IMPACT OF SHIFTING A LOT OF THAT WORK TO OTHER COUNCIL MEETINGS.

I THINK THIS GIVES THIS STUFF WILL, WILL COME BACK TO COUNCIL WITH THAT COUNCIL

[16. Authorize amendments to contracts with American Facility Services Inc. and BHW Operating Company LP for continued custodial services, to increase the amounts by $1,500,000, for revised total contract amounts not to exceed $6,447,000 divided between the contractors.]

MEMBER.

TOVO, CAN YOU DO THE, UH, AIRPORT, UH, ISSUE 16 REAL FAST? YEAH, I CAN TRY IN FIVE MINUTES.

UM, I'M ON, UH, SURE, WE'LL TRY.

UM, MY QUESTION, SO THIS IS A CUSTODIAL CONTRACT, UM, AND I WANTED TO HEAR FROM, I WANTED TO HEAR FROM OUR, THE DEPARTMENT OR DEPARTMENT REPRESENTATIVES OR PURCHASING OR BOTH ABOUT WHY THIS IS BEING HANDLED AS A CONTRACT RATHER THAN INSOURCING THOSE EMPLOYEES.

UM, THERE WAS NOT INFORMATION IN THE BACKUP THAT, THAT MADE THAT CLEAR.

IT IS AS STATED COUNCIL POLICY AFTER A LOT OF WORK THAT OUR COUNCIL HAS DONE TO, TO REALLY MAKE THAT THE PRACTICE.

IF IT'S A CONSISTENT, IF THESE ARE EMPLOYEES THAT PLAY CONSISTENT ROLES, UM, HERE AT THE CITY OF AUSTIN AND THIS IS AN ONGOING NEED AND NOT EXPECTING TO VARY, THEN UM, WE'VE MADE A POLICY DECISION.

AND I KNOW MR. SCARBOROUGH, YOU AND I HAVE HAD A TON OF CONVERSATION, SO I KNOW YOU'RE AWARE, I'M JUST KIND OF RESTATING FOR, FOR MY COLLEAGUES AND ANYBODY ELSE, UM, WHY, WHY I'M PULLING THIS ITEM.

SO IT DID TALK ABOUT THE AVIATION DEPARTMENT NEEDING A CONSISTENT CONTRACTOR TO ASSIST THE FACILITY SERVICE THAT THIS IS IN RESPONSE TO THE, THE INCREASINGLY HIGH VOLUME, BUT THE INCREASINGLY HIGH VOLUME IS, IS A CON, YOU KNOW, HAS BEEN A CONSTANT NOW WITH US FOR A VERY LONG TIME.

SO TO ME, THIS IS A SIGNAL THAT THERE IS A NEED FOR MORE REGULAR EMPLOYEES, NOT, UM, AN ADDITIONAL CONTRACT.

BUT AGAIN, THERE WAS NO REFERENCE IN THE BACKUP EVEN TO THE POLICY, EVEN TO THE POLICY OBJECTIVE OR THE VERY CLEAR DIRECTIVES MANAGER THAT WE'VE GIVEN YOU.

JUST ABOUT TO GET A SOLICITATION ON THE GROUND FOR A LONGER TERM CONTRACT.

UH, COUNCIL MEMBER TO VOTE MAYOR MEMBERS OF THE, UH, OF THE COUNCIL, UH, JAMES SCARBOROUGH FINANCIAL SERVICES DEPARTMENT, UM, UH, COUNCIL MEMBER, WE, WE COULD HAVE BEEN MORE CLEAR IN THE BACKUP BELOW LINE.

MY APOLOGIES IN THAT REGARD.

YOUR DIRECTION FROM THE COUNCIL WITH REGARD TO A PREFERENCE FOR INCREASING THE QUANTITY OF, OF, OF THESE SERVICES BEING PROVIDED BY CITY STAFF HAS BEEN VERY CLEAR IN SOMETHING THAT, THAT WE'VE BEEN WORKING WITH THE OTHER DEPARTMENTS TO PURSUE, UH, FOR SOME TIME NOW.

IN THIS INSTANCE, THIS PARTICULAR SET OF CONTRACTS, UM, IS ACTUALLY THE NEW SOLICITATION, UH, TO REPLACE THIS, THESE CONTRACTS IS, IS CURRENTLY ON THE STREET.

UM, THERE ARE, UM, JUST OVER, UH, FOUR MONTHS REMAINING IN THIS TERM.

IT'S JUST THAT THE, THE, THE QUANTITY OF SERVICES NEEDED, PARTICULARLY FOR, UM, UH, THE AIRPORT FOR THE, UH, DEPARTMENT OF AVIATION HAS EXHAUSTED, UH, THE REMAINING, UH, EXPENDITURE AUTHORITY.

SO THIS IS NOT INTENDED TO BE A LONG TERM, UM, UH, REQUEST.

THIS IS JUST TO GET THROUGH THE COMPLETION OF THE CURRENT CONTRACTS, UM, TO ALLOW US TO TIME TO COMPLETE THE, THE CURRENT SOLICITATION AND IMPLEMENT THE NEW CONTRACTS.

BUT AS, AS WE GO FORWARD THOSE DISCUSSIONS WITH THE DEPARTMENT, WE HAVE REPRESENTATIVES FROM THE VARIOUS DEPARTMENT INCLUDING, UM, UH, DIRECTOR ALEXANDER FROM, FROM, UH, BUILDING SERVICES.

UM, THE DEPARTMENTS ARE REVIEWING THEIR REQUIREMENTS FOR THESE TYPES OF SERVICES AND, AND DETERMINING THEIR SCHEDULE FOR BRINGING THOSE SERVICES IN.

UM, BUT THAT'S DONE ON A DEPARTMENT BY DEPARTMENT BASIS, BUT WE'RE WELL AWARE OF THAT AND, AND, AND MY APOLOGIES FOR NOT HAVING MADE THAT MORE CLEAR AND BELOW THE LINE.

WELL, THANK YOU FOR THAT EXPLANATION.

THAT'S VERY HANDY ABOUT THIS CONTRACT.

BUT I THINK I HEARD YOU SAY THAT THEY ARE

[02:45:01]

AND SO TO ME THAT, THAT KIND OF BRINGS ME BACK TO THE SAME QUESTION.

WHAT IS THEIR PLAN AND WHY ARE THEY, AND I SEE OUR DIRECTOR OF OUR AIRPORT HERE.

WHAT IS, WHAT IS YOUR PLAN FOR, UM, BRINGING THOSE ONGOING, YOU KNOW, THE, THE ONGOING, UM, CUSTODIAL STAFF, THE, I DUNNO HOW TO ARTICULATE IT.

UM, BRINGING, BRINGING IN HOUSE THOSE JOBS WHERE YOU KNOW, YOU'RE GONNA HAVE A CONSISTENT ONGOING NEED FOR THOSE STAFF VERSUS, UM, PUTTING THAT INTO A CONTRACT.

GOOD AFTERNOON COUNCIL, GI, CHIEF OPERATIONAL OFFICER, UM, COUNCIL, UH, TO, WE ARE AWARE OF THE RESOLUTION THAT WAS PASSED IN THE PAST AND WE ADDED ADDITIONAL FTE TO THE BUDGET AMENDMENTS FOR THIS YEAR AND ALSO FOR FY 23, THIS CURRENT CONTRACT OR THE FUTURE CONTRACTS WILL JUST HELP US FILL IN THE GAP.

CURRENTLY WE HAVE 40% VACANCY RATE IN OUR CUSTODIAL STAFF AND WITH THE TSA 10 YEAR BACKGROUND CHECK THAT'S LIMITS THE, THE CANDIDATES POOL, SO HAVE PULL.

SO HAVING THESE CONTRACTS WILL JUST ONLY HELP US FILL THE GAP.

I'M SORRY, I JUST WANNA BE SURE I HEARD YOU CORRECTLY.

DID YOU SAY A 20% VACANCY GAP? 40%.

40 40 AMONG YOUR CUSTODIAL STAFF AT THE AIRPORT? YES MA'AM.

WOW, THAT'S ENORMOUS.

UM, AND, AND DO THE CONTRACT CUSTODIAL STAFF HAVE BACKGROUND CHECKS? THEY DO HAVE BACKGROUND CHECK.

WE'VE BEEN WORKING WITH THE TWO CONTRACTORS THAT THE CITY HAS CURRENTLY, AND THEY'RE, THEY'RE ALSO STRUGGLING TO GET US THE STAFF AND WE REQUESTED OVER 20, UH, STAFF MEMBERS SO FAR.

THEY JUST PROVIDED US 11.

I SEE.

SO IT'S THE SAME BACKGROUND REQUIREMENT.

THEY JUST HAVE A BIGGER, THEY ALREADY HAVE A POOL OF FOLKS THEY CAN DRAW FROM.

WITH 12 31, 12 45, 12, 12 30 WORKS.

THAT'S, UM, VERY HELPFUL.

THANK YOU VERY MUCH.

THANK YOU COLLEAGUES.

UM, WE'RE GOING TO, UH, TAKE A RECESS NOW.

UH, WE CAN MEET IN EXECUTIVE SESSION.

IT'S A 1245, SO I WORK 1230 OR 1245.

WE OKAY.

AFTER EXECUTIVE SESSION WE'RE GONNA COME BACK OUT.

UH, WE HAVE THE COUNCIL MEMBER, UH, TOKS, UH, REAL ESTATE ISSUE TO HIT.

WE HAVE THE PUT, I DON'T ANTICIPATE IT'S ACTUALLY GOING THROUGH ANY OF THE PUT ISSUES, UH, BUT DE MORE TALK ABOUT HOW WE'RE GOING TO APPROACH THAT ON THURSDAY, WHICH I THINK WILL BE SIMILAR, THAT WE WENT THROUGH IT, UH, TWO WEEKS AGO.

UH, AND THEN WE ALSO HAVE THE BALANCING, UM, UM, ITEM THAT, UH, I FILED ITEM 74 WITH MY, UH, CO-SPONSORS.

UH, SO WE'LL HANDLE THOSE PULL PULLED ITEMS. UH, CAN, TOBA ALSO HAS 1 39 ON THE CONCRETE POUR, SO WE'LL HANDLE THOSE WHEN WE COME BACK.

BUT WE'LL GO, I'M GONNA CALL EXECUTIVE SESSION NOW.

COTO MAYOR, I KNOW THERE MIGHT BE A LOT OF STAFF ASSOCIATED WITH MY REAL ESTATE ITEM AND, AND I REALLY JUST WANTED TO ASK MY COLLEAGUES QUESTIONS.

UM, SO I HATE, I'M TORN BECAUSE, UM, I WOULD LIKE TO HEAR FROM MY COLLEAGUES AND THE STAFF.

YOU MAY HAVE QUESTIONS FOR THE STAFF THAT ONLY THEY CAN ANSWER, BUT I'M ALSO COMFORTABLE WITH THAT PART OF IT HAPPENING ON THURSDAY.

SO IF WE WANT THE STAFF WHO WOULD BE HERE, WHO WOULD OTHERWISE BE ABLE TO GO BACK TO THEIR DAYS, UM, YOU KNOW, I'M, I JUST WANNA SAY THAT THAT THAT WOULD BE TOTALLY FINE WITH ME IF THERE ARE PEOPLE HERE ARE HERE JUST TO SUPPORT THE Q AND A FOR THE REAL ESTATE.

UM, YOU KNOW, I'M COMFORTABLE WITH TABLING ANY QUESTIONS THAT COME UP THAT ONLY THEY COULD ADDRESS UNTIL THURSDAY IF MY COLLEAGUES ARE AS WELL.

MOSTLY I WANNA HEAR FROM, I, I LOOK AT, I LOOK AT THE, THE, I'M, I'M, I'M REALLY UM, UH, PLEASED THAT YOU BROUGHT THAT ITEM BECAUSE I THINK WE HAVE KIND OF A, UH, EXPERIENCE NOW AND TRACK RECORD ON THINGS THAT HAVE ARISEN.

THERE ARE ISSUES THAT HAVE ARISEN SOME OF WHICH COUNCIL'S GIVEN DIRECTION ON, UH, AND TO THE DEGREE THAT WE CAN SPEAK TO THOSE THINGS, UH, AS A NEW COUNCIL'S COMING IN, I THINK THAT WOULD BE A REALLY IMPORTANT, HELPFUL THING FOR US TO DO.

UH, I'M NOT SURE I'M GONNA BE READY TO VOTE ON IT ON THURSDAY.

UH, I MEAN IT'S PRETTY BROAD AND, AND AND, UH, ONLY SEEN IT RECENTLY.

UH, I DON'T KNOW IF THERE'S ANOTHER DRAFT THAT'S COMING OUT, UH, THAT HAVEN'T SEEN, UH, I REALLY HAVEN'T HEARD, HAD THE OPPORTUNITY TO HEAR BACK FROM EACH OF THE IMPACTED DEPARTMENTS.

UH, I THINK THESE ARE REALLY IMPORTANT POLICIES FOR US TO BE SETTING AND TO SHARE THAT KNOWLEDGE.

UH, I'M JUST NOT SURE THAT I'M GONNA BE ABLE TO HAVE HAD THE OPPORTUNITY TO VET IT WITH ALL THE COUNCIL STAFF THAT I WOULD WANT TO, UH, IN ORDER TO BE ABLE TO VOTE ON THURSDAY.

WHILE MAYOR, AND I KNOW WE INVITED YOU TO BE PART OF THAT QUORUM SO THAT WE COULD, UM, ADDRESS ANY QUESTIONS.

SO THEN MAYBE, I MEAN, I DO WANNA STILL TALK ABOUT IT THIS AFTERNOON.

UM, AND I GUESS MANAGER, IT'S YOUR DECISION WHETHER OR NOT TO HAVE THE STAFF THERE.

ONE OF THE REASONS I BROUGHT IT FORWARD ON THE LAST COUNCIL AGENDA AND PULLED IT FOR COUNCIL DISCUSSION IS TO TRY TO ADDRESS QUESTIONS AND ANSWER, ANSWER COMMENTS.

SO IT'S BEEN, YOU KNOW, IT'S BEEN POSTED A LONG

[02:50:01]

SO I, I WOULD, UM, WE'VE BEEN WORKING KIND OF AROUND THE CLOCK WITH STAFF TO TRY TO ADDRESS THEIR CONCERNS.

WE WILL HAVE A NEW DRAFT THAT I, I BELIEVE ADDRESSES AND RESOLVES MOST, IF NOT ALL OF THEIR CONCERNS.

UM, AND, YOU KNOW, WE'RE GONNA CONTINUE PLUGGING THROUGH BECAUSE I DO, I DO WANNA KIND MOVE FORWARD WITH IT.

AND WE PUT ON Q AND A, COLLEAGUES ARE QUESTIONED THAT BASICALLY SAID IF STAFF HAS REACTIONS TO THIS BY DEPARTMENTS, UM, I THINK YOU HAVE HAD THE OPPORTUNITY TO WORK WITH COUNCIL MEMBER TOBY'S OFFICE ON THIS AND UM, UM, UM, THEY PROBABLY ARE PRIVY TO SOME OF THE CONCERNS OR WAYS YOU THINK IT'S REALLY GOOD AND SHOULD BE MOVED FORWARD THAT THE REST OF US HAVE NOT HAD.

UH, SO I PUT INTO THE Q AND A A QUESTION ASKING FOR THAT INFORMATION, UH, TO, TO COME BACK TO, TO COUNCIL.

I'D VERY MUCH LIKE TO, TO SEE THAT.

IF I JUST ASK MANAGER THEN I HOPE THE RESPONSE WILL REFLECT THE CHANGES THAT WE'VE MADE IN RESPONSE TO STAFF.

I MEAN, SOME OF THE COMMENTS THAT WE WERE GETTING BACK AND, AND THIS IS PROBABLY A CONVERSATION FOR AFTERNOON.

I DIDN'T MEAN TO DELAY IT.

I WAS JUST TRYING TO GET YOUR STAFF BACK TO WORK.

BUT, UM, YOU KNOW, FOR EXAMPLE, SOME OF THE QUESTIONS DID RE DID REQUIRE US MAKING REVISIONS.

SOME OF THE QUESTIONS, UM, REQUIRED US TO KIND OF POINT OUT WHERE IT WAS HANDLED ELSEWHERE IN THE DRAFT.

SO, YOU KNOW, I WANNA BE REALLY, I WANT, I KNOW MY STAFF REACHED OUT TO YOUR STAFF THIS MORNING TO WORK THROUGH SOME OF THOSE, BECAUSE WHAT I, WHAT I WOULD ASK IS THAT THE RESPONSES AND THE Q AND A BE REALLY DIRECT ABOUT ANY REMAINING ISSUES.

NOT ABOUT, NOT ABOUT ISSUES THAT WERE JUST SIMPLY OVERLOOKED IN OTHER PARTS OF THE DRAFT.

I APPRECIATE THE COUNCIL MEMBER AND I THINK I'LL DEFER TO STAFF, BUT CERTAINLY I THINK AT LEAST FOR, I HAVE NOT SEEN THE REVISED VERSION.

AND SO IN ORDER FOR US TO BEST RESPOND TO EVEN MORE RECENT Q AND A, UH, I COULD BE GOOD TO WORK FROM THE MOST RECENT DRAFT OF THE RESOLUTION AS OPPOSED TO OKAY, WHERE OBVIOUSLY GONNA CALL IT UP THIS AFTERNOON.

SO LET'S CALL IT UP THIS AFTERNOON.

WE CAN TALK ABOUT IT.

CITY COUNCIL IS

[Executive Session]

NOW GONNA GO INTO CLOSED SESSION TO TAKE UP THREE ITEMS PURSUANT TO 5 5 1 0 7 6 AND 5 5 1 0 8 9, THE GOVERNMENT CODE.

UH, WE'RE GONNA DISCUSS INFORMATION SECURITY RELATED ITEM E ONE AND PURSUANT TO 5 5 107, 1 OF THE GOVERNMENT CODE CITY COUNCIL WILL DISCUSS LEGAL ISSUES RELATED TO ITEMS E TWO AND ALSO, UH, PURSUANT TO 5 51 1 33 OF THE GOVERNMENT CODE CITY COUNCIL DISCUSS CERTAIN POWER PUBLIC UTILITY COMPETITIVE MATTERS RELATED TO ITEMS 71.

WITHOUT AN OBJECTION HERE AT 1204, WE'RE GONNA DO RECESS.

THIS PORTION OF THE COUNCIL MEETING.

WE'LL ALL SEE YOU BACK IN EXECUTIVE SESSION, WHICH WE WILL DO REMOTELY AND WE'LL SEE YOU THERE AT 1230.

OCTOBER 9TH, 11TH, 11TH, 11TH.

UM, UH, LET'S CONTINUE ON WITH THE, UH, AGENDAS THAT WE HAVE PULLED.

WE HAVE, UM, I WANNA TOUCH BASE REAL QUICKLY

[Items 68 & 69]

ON THE PUT ITEMS 68 AND 69.

UH, I DON'T ANTICIPATE AS TAKING A VOTE ON SECOND READING THIS THURSDAY EITHER.

AS WE WORK THROUGH, UH, THE ISSUES I'VE HANDED OUT SOMETHING THAT I THINK TRACK THE, THE ISSUES THAT, THAT, UM, WE'VE IDENTIFIED.

I HANDED OUT A SIMILAR SHEET LIKE THIS, UH, WHEN WE WORKED, UH, TWO, TWO WEEKS AGO.

HOPEFULLY WE'LL HAVE, UH, OF THE STAFF'S, UH, VERSION FIVE, UH, WITH US.

UH, AS WE GO THROUGH THIS.

WE HAVE THE HOTEL USE, UH, QUESTION AS TO WHETHER OR NOT WE ALLOW, UH, HOTEL USE.

UH, WE CAN TALK ABOUT THAT, UH, ON THURSDAY, BUT THAT'S KIND OF A, A YES NO OR WHETHER IT'S A CONDITIONAL USE, SEEM TO BE THE CHOICES THERE.

WATER FORWARD IS WHETHER OR NOT WE USE CITY CODE OR WHETHER WE USE, UH, SOMETHING OTHER THAN, THAN CITY CODE.

BASED ON THE BRIEF CONVERSATION THAT WE HAD LAST TIME, IT SEEMED AS IF, UH, UH, THE, THE SENTIMENT WAS TO TO USE CITY CODE, UH, THAT WOULD APPLY.

UH, BUT THAT'S WHAT THAT DISCUSSION WOULD BE ON IRRIGATION.

UH, THE APPLICANT SAID THAT, UH, IF, UH, ALLOWED THEY HAD WORKED OUT A DEAL WITH LCRA TO UH, BE ABLE TO USE WATER FROM THE LAKE, THEY WOULD, UH, BE USED JUST OFF THE, THE LAKE.

I'D LIKE TO TO KNOW MORE ABOUT THAT FROM THE APPLICANT, BUT THAT WOULD SEEM TO BE REASONABLE.

AND IF OUR WATER DEPARTMENT HAD A PROBLEM WITH THAT ISSUE, THEN THEN MANAGER WOULD BE HELPFUL TO, TO KNOW THAT.

OTHERWISE, I DON'T KNOW WHY WE WOULDN'T LET THAT DEAL HAPPEN.

WE HAVE THE PARKLAND DEDICATION FEE, UM, WHICH SEEMS TO BE THE QUESTION OF WHETHER THE APPLICANT PAYS THE AMOUNT THAT THE APPLICANT WAS INTENDING TO PAY BEFORE WE ADJUSTED THE RATES.

THE SENTIMENT SEEMED TO BE TO ASK THE APPLICANT TO PLAY WITH THE PAY, WHAT THE APPLICANT SAID THE APPLICANT WAS GOING TO PAY BEFORE.

[02:55:01]

UM, AND I THINK, THINK THAT'S, YOU KNOW, BASED ON MY READ OF THE DAYS WHERE I THINK PEOPLE WERE ON THAT PARKLAND MAINTENANCE OF QUESTIONS, WHO DOES THAT? WHETHER THAT'S THE DEVELOPER THAT DOES THAT OR WHETHER THAT'S STAFF BASED ON THE CONVERSATION THAT I'VE HEARD, IT WOULD APPEAR AS IF IT'S BEST FOR STAFF TO DO THAT CUZ THAT'S WHAT WE DO IN PARKS.

BUT IF OUR PARKS DEPARTMENT BELIEVES IT REALLY NEEDS TO BE SOMETHING ELSE, I'D APPRECIATE THEM REACHING OUT.

UH, TO, TO VARY FROM WHAT IS THE, THE NORMAL FUNCTION OF, OF WHO TAKES CARE OF OUR PARKS ON THE AFFORDABLE HOUSING ISSUE.

UH, WE DISCUSS THAT A LITTLE BIT.

MY SENSE FROM THE DAIS IS THAT, UH, THE, THE, THE CRITICAL MATH SEEMED TO BE TO USE THE, UM, UH, 4 22, UH, LOCATION SO THEY COULD BE STARTED IMMEDIATELY.

UM, I THINK IT WAS 70 UNITS AT 80% AND 36 AT 60%.

THERE SEEMED TO BE A DESIRE TO, TO REALLY, UH, ASK THE APPLICANT IF THEY COULD COME BACK WITH MORE 60% UNITS THAN 36 IF WE MAKE THE CHOICE TO GO TO 4 22.

AND THEN THE OTHER QUESTION IS, UH, FROM FROM THE APPLICANT, UH, IF THE APPLICANT'S GOING TO LET US USE THOSE UNITS AND PUT THEM INTO SERVICE EARLY, WHAT HAPPENS IF THE CITY DOESN'T COME THROUGH ON THE BACK END WITH THE CAPITAL IMPROVEMENTS TO, TO BARTON SPRINGS ROAD AND THAT KIND OF STUFF, UM, GONNA BE REALLY DIFFICULT TO GET UNITS BACK.

SO I THINK THE TWO QUESTIONS FOR THAT ARE, UH, WITH RESPECT TO THE FORMAL HOUSING, UM, DO WE WANT TO DO IT IN 4 22? IF WE DO, ARE WE UNITED IN TRYING TO ASK THE APPLICANT TO COME UP WITH MORE UNITS THAN WHAT WAS PROPOSED AND WHAT IS THE APPROPRIATE TIME FOR THE, UH, APPLICANT TO PUT THEM INTO SERVICE? UH, CUZ I THINK THE, THE APPLICANT'S REQUEST TO MAKE SURE THAT THE WHOLE DEAL HAPPENS IS, IS WORTHY OF REVIEW ON NUMBER EIGHT.

UH, THE QUESTION ON FOR AFFORDABLE COMMERCIAL RATE, UM, I THINK THAT OUR STAFF HAD PROPOSED THAT IT WOULD BE DETERMINED BY E D D THE APPLICANT SAYING RATHER THAN LEAVING THAT UNDEFINED, CAN WE JUST AGREE AT 60% OF CLASS A MARKET RATE? I'D LIKE TO HAVE ED D MANAGER COME BACK AND TELL US IF THEY HAVE AN ISSUE WITH 60% OF E D D, IF THERE WAS SOME OTHER THING THAT WOULD MAKE IT CERTAIN SO THAT IT'S NOT KIND OF LEFT OPEN AND UNABLE TO ACTUALLY PUT INTO A PROFORMA.

THEY HAVE AN ALTERNATE PROPOSAL COME BACK FOR THAT.

BUT I THINK IT'S REASONABLE TO, TO LIQUIDATE THAT SO THAT EVERYBODY CAN PLAN AROUND THAT REFLECTIVITY.

UH, YOU IS AN ISSUE.

UH, FOR LIFE OF ME.

I REALLY DON'T, I DON'T UNDERSTAND THAT.

I DON'T KNOW WHAT THE POLICY IS DOWNTOWN, BUT IF OUR STAFF COULD TAKE A LOOK AT THAT, UM, I THINK COUNCIL MEMBER TOVA HAD PROPOSED A, UH, TWO DIFFERENT TIERS FOR REFLECTIVITY, BUT THERE WAS ISSUE WITH BIRDS AND UH, NOT TO DISCUSS THROUGH THAT, BUT I THINK THOSE ARE THE ISSUES THAT WE NEED TO DISCUSS ON THURSDAY.

BUT HAVING MORE DATA INFORMATION OR RECOMMENDATION FROM OUR STAFF I THINK WOULD BE HELPFUL.

KATHY? YEAH, I WAS JUST GONNA MENTION THAT CAME FROM ONE OF THE COMMISSIONS.

I MEAN IT DIDN'T COME OUTTA MY HEAD.

IT CAME FROM ONE OF OUR COMMISSIONS AND WE DO HAVE A LETTER I THINK EVERYBODY RECEIVED YESTERDAY FROM AON SOCIETY, UM, INDICATING, I BELIEVE THEIR RECOMMENDATION IS WHAT IS WHAT WE PASSED ON FIRST READING, BUT THAT SHOULD BE IN YOUR BOX, UM, AS OF YESTERDAY OR MAYBE THIS MORNING.

OKAY, HELPFUL.

I THINK ONE OF THE REALLY BIG ISSUES THAT WE HAVE NEW IS THE SETBACK QUESTION.

WE REALLY HAVEN'T DISCUSSED THAT ONE AT LENGTH, SO IT'D BE REALLY HELPFUL IF STAFF COULD KIND OF LAY OUT FOR US, UH, YOU KNOW, AND, AND IF THE APPLICANT COULD COME PREPARED TO ADDRESS THE SETBACK ISSUE.

WE HAVEN'T DISCUSSED THAT YET, SO I WOULD THINK THAT'S KIND OF LIKE NEW TURF FOR US TO BE ABLE TO WALK THROUGH.

UM, UH, CASUAL TOVO HAD A, UH, USE OF PUBLIC FUNDS PROHIBITING PUBLIC FUNDS TO BUILD INFRASTRUCTURE AND I THINK I UNDERSTOOD WHAT YOU MEANT BY THAT, BUT I THINK THERE'S ALREADY PUBLIC FUNDS IN THE DEAL AS IT'S SET UP NOW, SO I'M NOT SURE HOW TO RECONCILE THAT.

I THINK YOUR INTENT IS GOING FORWARD OTHER THAN WHAT'S STATED IN THE DEAL.

WE DON'T WANT YOU TO GO OUT AND GET SUBSIDIZED FOR THE PROMISES AND COMMITMENTS THAT YOU'VE MADE.

IF THAT'S WHAT IT IS, THEN I I AGREE WITH THAT TOO.

I JUST DON'T KNOW THE RIGHT WAY TO, TO WORD THAT.

SO AT THE MOMENT, THE ONLY, THE ONLY INFORMATION WE'VE GOTTEN FROM STAFF ABOUT WHERE THERE IS PUBLIC INVESTMENT, IT RELATES TO THE PARKLAND DEDICATION.

I DON'T KNOW IF WE HAVE MORE, THERE MAY BE MORE ON THE Q AND A, BUT WHEN I ASKED THE QUESTION ABOUT WHAT PUBLIC INVESTMENT OR SUBSIDIES WERE IN THERE, WE ONLY GOT INFORMATION BACK ABOUT PARKLAND.

UM, THE DEVELOPER LISTED OFF A FEW OTHER THINGS.

THAT IS NOT SOMETHING WE'VE GOT A LIST OF OR AN ACCOUNTING OF.

SO I WOULD SAY AT, YOU KNOW, STEP ONE WOULD BE FOR US TO GET AN ACCOUNTING OF WHAT THE, WHAT THE DEVELOPER HAS REQUESTED PUBLIC

[03:00:01]

SUBSIDY OF.

UM, BUT YES, MY AMENDMENT SAYS THAT THE, THAT THE APPLICANT IS NOT GOING TO USE IS NOT GOING TO GET PUBLIC INVESTMENT OR ANY KIND OF SUBSIDIES TO MEET THE REQUIREMENTS OF OF THE PROPOSAL.

SO I JOINED IN IT TOO.

SO IT'D BE HELPFUL TO STAFF AND THE APPLICANT WHEREVER THE APPLICANT MIGHT BE, TO, TO MAKE SURE THAT WE TO MAKE SURE THAT WE, THAT WE, UH, HAVE A REAL GOOD FEEL FOR WHERE SUBSIDIES ARE, ARE NOT, UH, IN THE PROJECT PROPOSAL.

IN THE PROPOSAL.

YEAH, IN THE PROJECT PROPOSAL ANTICIPATED, UM, UH, THE LAST ONE THAT I HAD HERE WAS, UM, UH, MY AMENDMENT, WHICH WOULD ALLOW FOR ADDITIONAL DEVELOPMENT ABOVE THE 3.5 MILLION SQUARE FEET IN EXCHANGE FOR ADDITIONAL AFFORDABLE HOUSING.

UH, SO PURELY AS A, AS A BONUS IN ASKING STAFF TO COME BACK, UM, WITH PROPOSAL.

AND THEN I HAVE A SECTION CALLED IN PROGRESS AND THIS IS, UH, COUNCIL MEMBER KITCHENS, UH, AMENDMENTS AND COUNCIL MEMBER POOLS AMENDMENT, WHICH, UH, I HEARD BOTH THEY'VE BEEN RESOLVED, BUT I'VE ALSO HEARD THAT THEY'RE NOT QUITE RESOLVED.

SO I URGE COUNCIL MEMBERS KITCHEN AND POOL TO AND URGE THE APPLICANT ESPECIALLY TO TRY TO TELL US IF THERE ARE, ARE OUTSTANDING ISSUES.

UH, WITH RESPECT TO THAT.

HOPEFULLY WE CAN MOVE THROUGH THAT QUICKLY AND YES, IF IT, IF IT'S APPROPRIATE.

UM, I JUST WANTED TO SPEAK TO THAT FOR A MOMENT.

REAL FAST CUZ WE'RE NOT ACTUALLY DEBATING THEM AT THIS POINT.

WE'RE JUST IDENTIFYING ISSUES BUT GO.

OH, OKAY.

ALRIGHT.

THOSE ARE IN PROCESS.

I HAVE ONE MORE AMENDMENT THAT I HADN'T SURFACED BEFORE AT THE APPROPRIATE TIME.

UH, I WOULD LIKE TO RAISE IT CUZ I THINK IT MIGHT GO ON YOUR LIST.

OKAY, THAT'D BE GOOD.

I MEAN, COME BACK TO YOU HERE IN LIKE 30 SECONDS.

THAT'S FINE.

SO THOSE, SO THOSE WERE THE IN PROGRESS THINGS.

DO WE HAVE SOME THINGS THAT I THINK WE'VE RESOLVED? UH, THE RESIDENTIAL USE NEAR THE BATS, THE LEAD, UH, VERSUS A THREE STAR SOUNDED LIKE A B THAT THE 10 FOOT WIDE VEGETATED BUFFER DIDN'T SEEM TO BE NEEDED CUZ THEY WERE FOR THE BATS, THE BIKE PEDESTRIAN SAFETY, I THINK WE HAD THE BEDROOM MIX I THINK WE HAD AND THE BETTER BUILDING PROGRAM, I THINK THAT WAS RESOLVED AS WELL.

UM, BUT WE'LL, WE'LL MAKE SURE THAT THAT LANGUAGE IS, IS, IS PRESENTED HOPEFULLY I THINK IN, IN V FIVE THAT THE STAFF PREPARED.

AS I GO THROUGH THESE AS WE JUST WENT THROUGH 'EM, I THINK WE COULD PROBABLY REALLY TOUCH BASE ON THESE.

I'M NOT SURE WE'RE THAT FAR APART ON MOST OF THESE THINGS AS WE JUST WENT THROUGH THE LIST, BUT THAT'S THE INTENT TO GO THROUGH THEM PLUS WHATEVER ADDITIONAL ITEMS PEOPLE MIGHT HAVE.

I UNDERSTAND THAT THERE ARE LANGUAGE KNITS AND I DON'T KNOW WHETHER THEY'RE ACTUALLY KNITS OR WHETHER THEY'RE SUBSTANTIVE THINGS.

UH, SO I THINK IT'S REALLY IMPORTANT THAT OUR STAFF GET WITH THE, UH, APPLICANT TO RESOLVE, UH, WORDING CHANGES THAT MAY HAVE CHANGED JUST GENERALLY IN THE TEXT BETWEEN, UH, WHAT HAD BEEN PRESENTED BEFORE PLANNED COMMISSION AND WHAT CAME BACK TO COUNCIL.

ANYTHING THEY CAN'T BE RESOLVED, ANYTHING THAT'S A SUBSTANTIVE ISSUE, UH, LET'S MAKE SURE THAT WE MARK THOSE SO THAT WE CAN ELEVATE THOSE ISSUES ON THURSDAY SO THAT PEOPLE KNOW THERE'S, UH, AN ISSUE, UH, WITH REGARD TO THAT WORD OR WORDS OR THAT CONCEPT OR, OR, OR POLICY.

SO, UH, HEADS UP TO EACH OTHER ON ADDITIONAL AMENDMENTS THAT WE MAY NOT KNOW AT THIS POINT.

COUNCIL MEMBER KITCHEN, YOU SAID YOU HAD ONE? UH, YES, I'M, I'M, UH, EXPLORING RIGHT NOW.

UM, SOME ISSUES RELATED TO THE BOARDWALK.

UM, DEFINITELY, UM, TUNING LOWER, LOWER IT JUST A LITTLE BIT LOUD.

YOU'RE VERY LOUD.

THAT'S NOT YOUR, NOT YOUR FAULT AND IS SUCH .

UH, BUT IF WE'RE NOT READY TO DO IT AT THE LAST MEETING IN OCTOBER, WE CAN PUSH IT TO THE WEEK AFTER THAT.

UH, SO MY CONCERN, UM, HAS TO DO WITH, UH, THE BOARDWALK.

I DEFINITELY DO NOT WANT, UM, TO USE PUBLIC DOLLARS ON THE, ON THE BOARDWALK BECAUSE IT'S NOT THAT I HAVE ANYTHING AGAINST A BOARDWALK, BUT I'M ALSO THINKING THAT WE'RE, WE'RE DOING A LOT OF ANALYSIS RIGHT NOW ABOUT HOW WE CAN AFFORD AFFORDABLE HOUSING AND TO ME THE BOARDWALK IS NOT A NECESSARY PIECE.

SO I KNOW WE'RE NOT DEBATING IT NOW.

I JUST WANTED TO, TO RAISE THAT, THAT I MAY, I MAY HAVE AN, UH, AN AMENDMENT RELATED TO THE BOARDWALK.

OKAY, SOUNDS GOOD.

IF YOU HAVE ANYTHING YOU CAN POST IT, THAT WOULD BE GREAT.

PRIOR TO TO TO THURSDAY.

UH, MAYOR PRO 10.

THANK, I JUST WANTED TO FLAG THAT ON HERE.

UM, IS POOL'S, AMENDMENT FOR PARKS, JUST THE ANNUAL PROGRAMMING PLAN? CAUSE I THINK IT WENT BEYOND JUST THE ANNUAL PROGRAMMING.

SHE HAD ONE RELATED TO PARKS.

YES, I WAS, IT WAS ALL, IT WAS THE FULL POOL AMENDMENT.

I JUST WANTED TO MAKE SURE THAT WAS MARKED.

UM, AND THEN I WANTED TO CLARIFY, IT DOESN'T SOUND TO ME LIKE WE ARE READY TO, TO VOTE ON THURSDAYS.

THE IDEA TO CONTINUE TO TRY TO MAKE PROGRESS, UM, BASED ON THIS LIST AND THE MOVING PIECES RATHER THAN VOTE ON THURSDAY.

YES, I THINK THAT'S THE INTENT.

NO VOTE ON THURSDAY.

HOPEFULLY WE CAN SET IT FOR RESOLUTION ON THE LAST MEETING IN OCTOBER.

[03:05:01]

BUT LET'S SEE.

CUZ THERE'S JUST NOT THAT MANY THINGS THAT SEEM TO BE UP IN THE, THE AIR AT THIS POINT.

SO IT WOULD BE MY INTENT TO POSTPONE IT TO THE FIRST MEETING.

LET'S SEE IF WE'RE ABLE TO DO THAT.

IF NOT, WE CAN MOVE IT BACK.

IF WE ARE, THEN WE'LL TAKE ADVANTAGE OF THAT OPPORTUNITY AND IF WE'RE NOT, WE'LL TAKE ADVANTAGE OF THAT OPPORTUNITY TO WORK THROUGH ISSUES THAT WE MIGHT NEED TO, TO TO WORK THROUGH IF THERE ARE ANY.

THANK YOU FOR THAT CLARIFICATION.

COUNCIL MATTO AND THEN JERRY DID YOU HAVE SOMETHING YOU WANTED TO HELP US WITH? YES, MARY, JUST BRIEFLY, UM, IF ONE OF Y'ALL COULD SHARE WITH ME PLEASE AUTOBON LETTER BECAUSE IT WENT TO THE CONS BUT NOT TO THE STAFF THAT WOULD HELP ME RE REVIEW IT.

THE AUTOBON LETTER? YES.

KATHY, CAN YOU GET THAT TO JURY? SURE.

UM, A COUPLE THINGS ABOUT THE SHEET AND THEN I, AND THEN I HOPE WE CAN TALK ABOUT THE PROCESS ON THURSDAY.

UM, LET'S SEE, JUST TO BE CLEAR, PARKLAND MAINTENANCE SIX B, I THINK WE HAD ASKED FOR SOME ESTIMATES OF WHAT, WHAT IT WOULD COST THE CITY TO MAINTAIN THAT PARKLAND, UM, AS CLASS A SPACE.

SORRY, LEVEL ONE STANDARD.

DO YOU KNOW, DO YOU KNOW THE ANSWER TO THAT NOW OR ARE YOU GONNA BRING THAT ON THURSDAY? UH, YES MA YEAH, WE HAVE THE ANSWER TO THAT.

I DON'T HAVE IT OFF THE TOP OF MY HEAD.

I KNOW DIRECTOR MCNELEY JUST PROVIDED TO US YESTERDAY, SO, AND THE DIRECTOR IS HERE AND THE DIRECTOR'S IN THE HOUSE.

YOU KNOW, ONE OF THE THINGS THAT I'VE NOTICED A SHIFT IN IS THAT IT USED TO BE WHEN YOU SUBMITTED QUESTIONS TO THE Q AND A, I THINK THEY POSTED RIGHT AWAY, EVEN IF THE ANSWERS WEREN'T UP THERE.

SO YOU COULD SEE EVEN ON MONDAY OR TUESDAY YOU COULD SEE THE QUESTIONS THAT OTHER COUNCIL OFFICES HAD SUBMITTED AND SO YOU DIDN'T NECESSARILY DUPLICATE THEM.

YOU KNOW, I NOTICED LATELY WE'RE ONLY GETTING THE AN, WE'RE ONLY GETTING TO SEE THE QUESTIONS ONCE THE ANSWERS HAVE POSTED.

AND IT, AND IT JUST, I THINK WOULD SAVE A LOT OF TIME IF WE COULD SEE THE QUESTIONS THAT OTHER PEOPLE WERE POSTING.

AND THEN, BECAUSE THIS HAS CONTINUED OVER FROM COUNCIL MEETING TO COUNCIL MEETING TO COUNCIL MEETING, IF YOU COULD MAKE SURE THAT, LIKE YOU DID LAST TIME, YOU MERGE ALL OF THE QUESTIONS FOR THE STATE'S MEN INTO ONE, YOU KNOW, SO CARRY OVER ALL THE QUESTIONS AND ANSWERS FROM PREVIOUS COUNCIL MEETINGS.

BOTH HELPFUL.

THANK YOU, DIRECTOR.

SO KIMBERLY MCNELEY SERVING AS THE DIRECTOR FOR PARKS AND RECREATION.

SO, SO WE ANSWERED THE QUESTION, UM, THREE DIFFERENT WAYS.

UH, ALL ANSWERS ARE CORRECT.

ONE WAS IF THE PARKS AND RECREATION DEPARTMENT TOOK OVER MAINTENANCE, SPECIFICALLY JUST THE PARKS AND RECREATION DEPARTMENT, WHICH WAS AN ESTIMATE OF ABOUT $600,000 WITH UH, FOUR STAFF, FOUR DEDICATED STAFF.

UH, THERE WAS ALSO A QUESTION, I BELIEVE FROM MAYOR PRO TE'S OFFICE WHO SAID, WELL WHAT IF UH, THERE HAD BEEN TALK OF PERHAPS A THIRD PARTY ENTITY BEING ABLE TO TAKE OVER A PARTNER IF IT WERE A PARTNER.

THEIR ESTIMATE IS AT ABOUT A HUN ABOUT $900,000.

AND, UH, THE, UH, APPLICANT THEMSELVES HAD AN ESTIMATE, WHICH I BELIEVE, AND I, I DON'T WANT TO MISQUOTE, BUT I BELIEVE IT WAS BETWEEN ONE AND 1.2 MILLION.

UH, BUT I, I NEEDED TO CONFIRM WITH THE APPLICANT THAT EXACT AMOUNT OF MONEY.

AND THAT'S WHAT THE ANSWER TO THE QUESTION SAYS.

AND THERE'S A SPREADSHEET THAT LAYS IT ALL OUT.

AND THE REASON WHY THE PARKS AND RECREATION DEPARTMENT IS A LITTLE BIT LOWER WITH FOUR DEDICATED STAFF IS THAT WE WOULD ALSO ASSUME THAT WE WOULD PULL FROM THE EXISTING STAFF THAT WE HAVE WHEN THERE WAS A SPECIALTY NEED.

SO WE WOULDN'T HAVE TO HIRE, UH, ADDITIONAL INDIVIDUALS LIKE A FIFTH OR A SIX PERSON.

BECAUSE IF WE NEEDED A SPECIAL FORESTRY, UH, THING, WE WOULD CALL ON OUR FORESTRY TEAM, WHICH WOULDN'T BE DEDICATED TO THAT SITE.

BUT THAT'S WHY THE OTHERS ARE PROBABLY A LITTLE HIGHER THAN THE PARKS AND RECREATION DEPARTMENTS ESTIMATE.

HOW MANY STAFF WOULD NEED TO BE SOLELY DEDICATED TO THAT SPACE ALL TIMES.

CAN YOU WANNA DIG INTO THIS ISSUE A LITTLE BIT? I DUNNO, I I WANNA DIG INTO THIS ISSUE A LITTLE BIT AND I DON'T KNOW IF NOW'S THE TIME OR SOME OTHER COMMENTS ON THE, ON OTHER ISSUES, BUT I TO SOMETHING THAT YOU SAID, MAYOR, YOU, YOU SAID, YOU KNOW, THIS IS SOMETHING THAT WE TYPICALLY DO AND I, AND I UNDERSTAND WHY THERE WOULD BE COST SAVINGS, BUT I'M ALSO JUST THINKING BACK ON A PRESENTATION I WENT TWO YEARS AGO THAT TOM TURKEL DID ABOUT THE TRIANGLE PARK AND HE SPOKE ABOUT ONE OF THE ADVANTAGES OF PRIVATE MAINTENANCE OF THAT LITTLE PUBLIC SPACE WITHIN THE MIDDLE OF THE TRIANGLE DEVELOPMENT.

AND YOU KNOW, MY TAKEAWAY FROM THAT, AND I DON'T KNOW IF THIS IS EXACTLY WHAT HE SAID OR WHAT MY TAKEAWAY WAS, BUT THAT BECAUSE BECAUSE IT WAS PRIVATELY MAINTAINED, THEY WERE ABLE TO MAINTAIN IT AT A SLIGHTLY HIGHER LEVEL THAN THE CITY WOULD, WOULD HAVE BEEN ABLE TO JUST BECAUSE OF A RESOURCE ISSUE.

AND SO I GUESS I THROW THAT OUT THERE, UH, JUST AS AN EXAMPLE OF, OF PLACES WHERE THAT IS A PUBLIC PARK SPACE, IT'S OPEN TO EVERYBODY, NOT JUST RESIDENTS THERE, BUT IT IS, IT IS, UM, MAINTAINED PRIVATELY AND THERE MAY BE SOME ADVANTAGES TO THAT.

SO THERE MAY BE SOME ADVANTAGES.

I I I CAN'T ARGUE THAT IS IS CORRECT.

THERE MAY BE SOME ADVANTAGES, BUT THE, UM, ESTIMATE THAT I PROVIDED FOR YOU WERE, WHAT WAS THE, WAS A ANALYSIS OF

[03:10:01]

SO WE'RE TALKING FOUR DEDICATED STAFF AT ALL TIMES.

THEY WOULDN'T WORK ANY OTHER PARK SPACE EXCEPT FOR THAT PARK SPACE.

SO WE TRIED TO MIRROR, UH, WHAT A PRIVATE, IN ORDER FOR US TO KEEP IT AT THAT LEVEL ONE, THE HIGHEST LEVEL OF MAINTENANCE, WE TRIED TO MIRROR WHAT THAT WOULD LOOK LIKE, BUT WE'RE ALSO CONSIDERING THE FACT THAT WE DO HAVE OTHER RESOURCES THAT WE COULD PULL FROM THAT PRIVATE ENTITY WOULD NOT HAVE.

SO THAT MAKES SENSE TO ME.

UM, BUT THAT IS, BUT IT IS, UM, NOT AN INCONSIDERABLE INCREASE IN EXPENSES.

I MEAN, YOU WOULD HAVE TO FIND AN ADDITIONAL 600,000 JUST RIGHT OUT OF THE GATE AND FIVE YEARS FROM NOW OF COURSE THAT COST COULD BE, WILL BE HIGHER.

SO AS WE STRUGGLE TO KIND OF MAINTAIN ALL OF OUR EXISTING PARK SITES, I JUST WANNA BE MINDFUL THAT THIS WOULD BE, THIS WOULD BE A BIG, A BIG JUMP.

THAT IS CORRECT.

OKAY, SO WE'LL PICK UP, UH, THESE YES, GO AHEAD.

JUST UM, FOR EXPECTATION PURPOSES, V FIVE IS ONLY A CLEAN UP TO ENSURE THAT WE GOT FIRST READING, THE FIRST READING VOTES RIGHT.

SO IT WON'T HAVE ANYTHING ELSE IN IT OTHER THAN FIRST READING.

AND WE KNOW THAT WHAT WE DID LAST TIME IS WE TOOK THAT V FIVE, WE KEPT THE COLOR CODING THE SAME WAY THE STAFF HAD DONE THAT.

AND THEN WE JUST BLOCKED AND READ THE ISSUES THAT THAT, AND WE HAD THEM HERE IN ORDER, IN INTEND FOR US TO DO THE SAME THING WITH THESE CATEGORIES HERE, BLOCKING SOME ADDITIONAL AREAS THAT WERE NOT BLOCKED THE FIRST TIME THAT EVER RISEN IN ISSUES AND THE, AND THE LIKE, JUST AS A WAY TO, TO BE ABLE TO MOVE THROUGH THE DRAFT.

HOPEFULLY ON THURSDAY WE'LL HAVE, UH, MORE REFINED FEEL FOR WHAT THE KIND OF THE, THE OUTSTANDING ISSUES ARE.

BUT NO VOTES WILL NO VOTE ON SECOND READING.

WE'RE JUST GONNA TRY AND, AND PUSH IT FORWARD.

DID YOU HAVE ANY OTHER QUESTIONS ABOUT THE POD? YEAH, A COUPLE OTHER THINGS.

YES I DO.

AND THEN I WANTED TO TALK ABOUT PROCESS AND I'M NOT SURE IF COUNCIL MEMBER KITCHEN IS, UH, SHE'S GOOD.

UM, COUPLE OTHER THINGS ON HERE.

I THINK I ALREADY TALKED ABOUT TWO MINUTES LEAVE IN THAT MAYBE WE BETTER SHIFT TO TALKING ABOUT PROCESS CUZ I KNEW OKAY, THAT WAS SOMETHING THAT, THAT WE DID WANNA JUST YEAH, I HAVE A HARD, FAST, I HAVE TO LEAVE IN TWO MINUTES.

SO, UM, OKAY.

WHAT'S YOUR QUESTION ABOUT PROCESS? I WOULD LIKE TO TALK ABOUT WHAT OUR PROCESS IS GOING TO BE LIKE TO HEAR FROM THE PUBLIC ON THURSDAY.

WE'VE UM, RECEIVED MULTIPLE REQUESTS THAT THERE BE A TIME CERTAIN AND ALSO THAT THERE BE A VERY CLEAR, UM, EXPECTATION ABOUT THE AMOUNT OF TIME PEOPLE HAVE.

BUT I THINK IN, IN AMID THAT WE REALLY NEED TO HAVE A TIME CERTAIN FOR THURSDAY.

AND MAYOR, IF I COULD JUST SAY ONE THING SINCE I'M GONNA HAVE TO GET OFF.

UM, I, I SUPPORT, I I I, I HAVE THE SAME CONCERNS THAT COUNCIL MEMBER TOBO IS RAISING.

I JUST THINK THE NATURE OF WHAT WE'RE TALKING ABOUT HERE, UH, AND BECAUSE WE'RE WE'RE TALKING ABOUT IT AS OPPOSED TO, YOU KNOW, WE'VE BEEN ACKNOWLEDGED ALREADY, IT'S NOT TIME TO VOTE.

I THINK IT WOULD BE VERY HELPFUL IF WE HAD A TIME CERTAIN SO THAT PEOPLE WOULD KNOW WHEN THEY COULD TALK.

UM, THE, UH, SO I, I WOULD, I'D LIKE TO, TO REQUEST THAT TIME.

I ALSO THINK IT WOULD BE IMPORTANT IF WE CAN TO, UM, TO, TO PROVIDE MORE THAN ONE MINUTE.

UM, AND IT COULD BE THAT IF, IF NECESSARY THAT THURSDAY'S NOT THE DAY TO DO THAT, MAYBE WE HAVE ANOTHER SEPARATE MEETING, UM, AT A TIME WHERE PEOPLE CAN TALK MORE AND UM, YOU KNOW, AND GO THROUGH THINGS MORE.

I, I THINK IT'S JUST IMPORTANT THAT BECAUSE OF THE COMPLEXITY OF THIS, I THINK IT'S IMPORTANT THAT, UM, WE PROVIDE ENOUGH OPPORTUNITY, UH, FOR PEOPLE TO REALLY FEEL LIKE THEY HAVE A CHANCE TO RAISE THEIR CONCERNS.

AND AGAIN, SO I JUST WANTED TO SAY THAT NOW AND I APOLOGIZE, I'LL HAVE TO JUMP OFF IN A MINUTE OR TWO, BUT NO, IT'S OKAY.

THE DEFAULT WOULD BE, UH, WE WOULD GIVE PEOPLE A TIME CERTAIN SO THEY WOULD KNOW WHEN TO BE ABLE TO COME.

IT'S TWO O'CLOCK.

UH, AND UM, UH, EVERYBODY WOULD BE INVITED TO COME AND SPEAK AT TWO.

IF THEY SIGNED UP WITH A NUMBER, THEY WOULD ALL BE ABLE TO SPEAK IN A GROUP.

UH, BECAUSE WE UH, CALL THE GROUPS BY, BY NUMBER.

I DON'T KNOW YET WHAT THE RECOMMENDATION WOULD BE ON HOW MUCH TIME PEOPLE HAVE THE SPEAKERS.

I DON'T KNOW HOW MANY PEOPLE HAVE SIGNED UP TO SPEAK TO, TO HELP MAKE SURE THAT THE, THE MEETING GETS HANDLED THEN.

UM, BUT I HEAR THE ISSUE THAT'S GONNA BE THE DEFAULT.

I'LL PUT SOMETHING UP ON THE MESSAGE BOARD POST AND THEN PEOPLE CAN RESPOND TO IT.

UH, AND THEN WE CAN DECIDE THAT QUESTION, UH, DIFFERENTLY THURSDAY MORNING IF PEOPLE WANT TO.

UH, YES, KEN, MARK KELLY, I JUST WANNA SAY THAT I, I'D LIKE TO ECHO WHAT COUNCIL MEMBER KITCHEN SAID AND I'M GLAD THAT WE'RE DISCUSSING IT BECAUSE I DO BELIEVE THAT THIS NEEDS MORE TIME AND WE NEED TO MAKE SURE THAT PEOPLE IN THE PUBLIC KNOW WHEN TO BE HERE.

UH, YES, JUST, JUST A QUICK, UH, QUESTION.

AND CERTAINLY WE ALSO KNOW THAT ON THIS ISSUE PEOPLE HAVE IN THE PUBLIC HAVE HAD PROBABLY FOUR OR FIVE CHANCES TO SPEAK THUS FAR.

AND THE WAY THAT WE'VE SET IT UP, WE'LL HAVE ANOTHER COUPLE CHANCES TO BE ABLE TO, TO SPEAK.

BUT I'M GONNA POST SOMETHING, PEOPLE CAN RESPOND TO IT ON MESSAGE WE POST AND WE'LL BRING THAT UP FIRST THING IN THE MORNING.

[03:15:01]

THE TIME CERTAIN, I THINK THAT'S VERY HELPFUL TO EVERYBODY.

UH, THE, CAN WE DISTINGUISH BETWEEN TIMES AND SPEAKERS DEPENDING ON TOPIC? I MEAN, JUST FROM A PUBLIC KIND OF FAIRNESS PERSPECTIVE.

I, I, I'M NOT TOTALLY FAMILIAR WITH THAT FROM A, I MEAN FROM A LEGAL POINT OF VIEW, IS IT OKAY TO SAY, OKAY, YOU KNOW, THIS, THESE ITEMS GET ONE MINUTE AND THESE OTHER ITEMS GET THREE MINUTES.

WE ONLY HAVE TO ALLOW PEOPLE TO SPEAK ON EACH ITEM.

THE QUESTION IS, CAN WE THEN SET A DIFFERENT TIME DEPENDING ON WHICH ITEM A PERSON WANTS TO SPEAK TO? THAT'S A POLICY QUESTION.

I WAS JUST THINKING THE VIEWPOINT DISCRIMINATION, YOU KNOW, FROM A FIRST AMENDMENT VIEWPOINT DISCRIMINATION POINT IN TIME.

BUT THAT THAT, I MEAN IF STAFF, IF STAFF WOULD TAKE A LOOK AT THAT BEFORE THURSDAY.

CAUSE I'VE HEARD THAT QUESTION RAISED BY SOME MEMBERS OF LEGAL DEPARTMENT AS WELL.

SO TAKE A LOOK UH, BECAUSE IT APPEARS SOME PEOPLE WOULD'VE MORE TIME TO SPEAK DEPENDING ON WHAT IT IS THEY WANNA SPEAK TO.

SO YOU COULD, AND THEN WE'LL THAT'LL INFORM THEN THAT CONVERSATION WE HAVE DONE BEFORE.

I KNOW THAT WE HAVE, SO WE'LL START WITH THAT.

AND WE'LL TRY TO LAY OUT THE NUMBERS IN MY MESSAGE WE'RE POSTING HOW MANY PEOPLE ARE SPEAKING ON WHICH ISSUES.

ALTHOUGH THAT'S NOT A DEFINITIVE NUMBER CUZ WE KNOW PEOPLE CAN CONTINUE TO SIGN UP UNTIL, UH, NINE 15 I THINK ON THURSDAY.

AND AGAIN, I WOULD REMIND THE PUBLIC IF YOU WANT TO SPEAK, YOU CAN SIGN UP AT THE KEY TOMORROW IF YOU WANT TO, BUT ON DAY OF THAT CLOSES AT NINE 15.

SO PLEASE MAKE SURE THAT IF, IF YOU CAN'T BE THERE AT NINE 15, YOU COME THE DAY BEFORE OR, OR MAKE ARRANGEMENTS TO BE ABLE TO TO SIGN UP.

ALL RIGHT.

SO I THINK THAT TAKES CARE.

GET THIS.

I HAVE A QUICK QUESTION.

SORRY TO TURN BACK TO THE SHEET.

I, I APPRECIATE THIS BEING BOILED DOWN INTO JUST WHERE THE DECISION POINTS ARE LEFT ON THE AFFORDABLE HOUSING COMPONENT.

IT MIGHT BE HELPFUL TO HAVE, YOU KNOW, THE MFI LEVELS, THE NUMBER OF UNITS AND THE TIMELINE OF WHICH THOSE WOULD BE AVAILABLE IN HERE.

JUST BECAUSE WE CAN KIND OF DO THE MATH ON 55 UNITS VERSUS 70 UNITS.

BUT UNDERSTANDING THAT ONE MAY BE READY, YOU KNOW, RIGHT NOW, UM, IS SOMETHING THAT WE SHOULD WEIGH AS WE LOOK AT HOW MANY YEARS UNTIL THE OTHER ONES BEING BUILT ON SITE WOULD ACTUALLY COME ONLINE.

AND I JUST, I'M NOT SAYING THERE'S ONE THAT'S RIGHT OR WRONG, BUT WE JUST SHOULD PROBABLY WEIGH THAT INTO WHICH ONE'S REALLY THE BEST DEAL AT THIS POINT IN TIME OR HOW MUCH 23.2 MILLION MIGHT GET US NEARBY IF THAT'S THE, THE OPTION OF THE COUNCIL.

AND THAT WOULD BE GOOD.

AND CERTAINLY WE DIDN'T TAKE ANY VOTES SO WE COULD CERTAINLY DO THE NEARBY OPTION.

UH, BASED ON THE CONVERSATION WE HAD LAST TIME, IT APPEARED AS IF THE CONSENSUS OF THE DAYS WAS NOT TO GO NEARBY BUT TO GO INTO 4 22.

BUT WE DIDN'T MAKE ANY DECISIONS THEN.

AND WE CAN CERTAINLY DO WHATEVER WE WANT TO DO.

DO YOU HAVE AN AD MISSION TO US, UM, WHEN IT IS BEING DISCUSSED, WHETHER THERE WILL BE A TIME CERTAIN FOR ITEM 68 AND 69 IF WE CAN KNOW WELL IN ADVANCE SO WE CAN PREPARE WITH THE VENDOR BECAUSE WE WILL NEED TO CREATE AN, AN ADDITIONAL BATCH.

WE'VE CALLED IT FOR TWO O'CLOCK, WHICH IS THE TIME WHEN ZONING SPEAKERS ARE.

SO IT COINCIDES WITH THE TIMES YOU WOULD BE GIVING THEM ANYHOW.

PERFECT.

BUT WE WILL TRY, WE WILL CALL THEM AS A GROUP CUZ THEY WILL BE SIGNED UP AS A GROUP.

COUNCIL FOR THIS FOR THE CONVERSATION ON THURSDAY.

UM, COUNCIL VER TOBO ON YOURS, THE USE OF PUBLIC FUNDS AND I THINK THIS RELATES TO COUNCIL KITCHEN'S AMENDMENT THAT SHE'S CONSIDERING ON THE BOARDWALK.

UM, IF I COULD HAVE A BETTER UNDERSTANDING, LIKE WHAT WOULD BE EXAMPLES OF WHERE PUBLIC FUNDS MIGHT BE USED THAT WERE TRYING TO RESTRICT THAT WOULD BE HELPFUL.

I'M NOW GONNA MOVE AWAY FROM THIS ITEM.

AND WE HAD ASKED STAFF TO KIND OF LIST THEM OUT, LIST THEM OUT, UM, BUT WE DIDN'T, WE DIDN'T GET A COMPREHENSIVE LIST.

SO THIS, THIS, AND I DID WANNA WANNA POINT OUT IT'S REALLY BROADER, AS I SAID EARLIER, IT'S REALLY BROADER THAN JUST BUILDING INFRASTRUCTURE.

IT'S REALLY SAYING, YOU KNOW, WE ARE NOT INVESTING PUBLIC FUNDS UNLESS THEY'VE BEEN CALLED OUT IN THIS LITTLE LIST AND WE'VE AGREED TO THEM.

WE'RE NOT INVESTING PUBLIC FUNDS OR ANY OTHER SUBSIDIES, UM, IN THIS PROPOSAL TO MEET, TO HELP THEM MEET REQUIREMENTS.

YOUR QUESTION ABOUT WHAT IS THE UNIVERSE IS A REALLY GOOD QUESTION AND THAT'S A QUESTION WE'VE ASKED AND WE'VE ASKED STAFF TO COME BACK AS WELL AS ASKING THE APPLICANT TO COME BACK WITH A LIST OF EVERYTHING THAT'S IN THIS PROPOSAL THAT INVOLVES THOSE SUBSIDY AND THE USE OF PUBLIC FUNDS.

AND SORRY, I KNOW WE NEED TO MOVE ON, BUT THE BOARDWALK, I'M NOT SURE AND I APPRECIATE, UH, A COUNCIL MEMBER KITCHEN'S AMENDMENT.

WHAT IS THE PURPOSE OF THAT? I MEAN, I MEAN THERE'S PLENTY OF, OF OF ROOM ON THE TRAIL THERE, UH, ON THE LAND FOR THE TRAIL.

UH, I UNDERSTAND WHERE THEY PUT THE BOARDWALK AND THE OTHER PIECES LIKE WHERE THOSE CLIFFS ARE, WHERE THAT, UH, YOU KNOW, IN CERTAIN SPOTS.

BUT I'M, I'M UNCLEAR AS TO WHY WE WOULD WANNA BUILD A BOARDWALK THERE WHEN THERE SEEMS TO BE ENOUGH ROOM ON THE ON TRAIL.

GOOD QUESTION.

WE'RE GONNA HOLD THAT TILL THURSDAY THAT YOU'VE IDENTIFIED IT.

WE'VE ASKED ANNE TO, TO POST HER AMENDMENT SO WE CAN ALL READ IT AND MAYBE THAT'LL GIVE US A GREATER INDICATION.

ALL RIGHT,

[03:20:01]

OH, I'M SO SORRY.

BUT I HAD IT.

I'M SORRY, GO AHEAD.

I HAD SOME OTHER THINGS ON THIS.

UM, ONE I JUST WANTED TO NOTE IT, IT CERTAINLY MAY BE THE CASE THAT WE RESOLVED THE BEDROOM MIX OF AFFORDABLE HOUSING, BUT I DON'T REMEMBER HOW WE RESOLVED THAT.

SO I'M GONNA HAVE TO GO BACK CUZ THAT'S AN ISSUE THAT'S IMPORTANT TO ME.

UM, THE PARKING GARAGE, COUNCIL MEMBER KITCHEN, THIS MAY BE ON HERE, BUT I KNOW THAT, YOU KNOW, AGAIN, IN, IN LOOKING FOR WAYS THAT WE COULD INCREASE THE AFFORDABLE HOUSING, SHE ASKED SOME QUESTIONS ABOUT THE PARKING GARAGE AT OUR LAST TIME SESSION AND I DON'T SEE THAT'S REFLECTED ON HEARING THAT.

OKAY, HELPFUL, THANK YOU.

ANOTHER IMPORTANT, UM, ISSUE WITH REGARD TO THE AFFORDABLE HOUSING, I WOULD, I WOULD LIKE TO HEAR, UM, SOME MORE INFORMATION FROM OUR, IF THERE'S GOING TO BE A, A CONVERSATION ON THE DIAS ABOUT USING FEES TO INVEST IN HOUSING OUTSIDE OF THE SOUTH CENTRAL WATERFRONT.

I REALLY WOULD LIKE TO HEAR FROM OUR, OUR STAFF, OUR HOUSING STAFF ABOUT THEIR RECOMMENDATION BECAUSE THAT IS AN IMPORTANT, THAT IS AN IMPORTANT CITY GOAL AND IT'S IN OUR PLAN TO INVEST AND TO MAKE SURE THAT WE HAVE, UM, 20% OF THE UNITS, HOUSING UNITS IN THE SOUTH CENTRAL BE AFFORDABLE.

SO I WOULD VERY MUCH LIKE TO, LIKE TO HEAR OUR SI OUR HOUSING STAFF WEIGH IN ON THAT.

AND I THINK THAT IS IT FOR THE MOMENT.

MEMBER POOL RAISED, SHE'S NOT WITH US HERE AND I DON'T WANNA PUT WORDS IN HER MOUTH, BUT THERE WAS SOME QUESTIONS THAT SHE RAISED I THINK WITH RESPECT TO HOW THAT WAS TREATED IN ITEM NUMBER 74 BECAUSE IT ASKED, IT GAVE, IT SAID STAFF, WHEN YOU COME BACK WITH SOMETHING, PLEASE COME BACK WITH A MITIGATION THAT MEANS STAFF'S ORIGINATING SOMETHING.

OKAY, COOL.

I'M GONNA NEED TO LEAVE HERE, BUT JUST BEFORE I DO ITEM NUMBER 74, UM, COLLEAGUES, THIS IS AN ITEM THAT BASICALLY DEALS WITH, UH, THE FRUSTRATION I THINK THAT I HAVE FELT, AND I THINK OTHERS IN THE DAYS HAVE FELT WHEN WE GET REALLY, REALLY GOOD ENVIRONMENTAL STUFF AND OTHER THINGS THAT WE WANT TO BE ABLE TO DO, BUT AT THE SAME TIME WE KNOW SAME TIME WE KNOW THAT, UM, STANDING BY THEMSELVES THEY COULD RESULT AND, AND DO RESULT IN IN LESS BUILDABLE AREA OR GREATER COST TO DEVELOPMENT.

AND WE SAY ON THE DAY THAT WE JUST DESPERATELY DON'T WANT TO BE PUT IN THE POSITION WHERE WE'RE HAVING TO DECIDE BETWEEN REALLY GOOD THINGS LIKE ENVIRONMENTAL STUFF VERSUS AFFORDABILITY.

SO THIS ITEM NUMBER 74 ATTEMPTS TO DEAL WITH THAT BY SAYING TO STAFF, WHEN YOU BRING US SOMETHING THAT IS A REALLY GOOD THING THAT WE WANT TO DO, BUT IT HAS THE IMPACT OF INCREASING COSTS OR DECREASING, UH, THE DEVELOPMENT, PLEASE ALSO GIVE US OPTIONS FOR MITIGATION THAT DOES, THAT COULD INCLUDE DEVELOPMENT ENTITLEMENTS, BUT IT COULD, COULD INCLUDE A WORLD OF THINGS OTHER THAN ENTITLEMENTS, BUT JUST SOMETHING TO BE ABLE TO OFFSET THAT SO THAT WE CAN TRULY SAY TO THE COMMUNITY, WE DON'T HAVE TO MAKE A CHOICE BETWEEN THESE TWO THINGS AND WE CAN DO THEM BOTH, BUT UNLESS WE'RE DOING THEM AT THE SAME TIME, THEN, THEN WE ARE MAKING A A CHOICE AND I DON'T WANT TO BE IN THAT POSITION AGAIN.

AND I WANT TO TRY AND HELP COUNCILS, UH, IN THE FUTURE NOT BE PUT IN THE POSITION WHERE, UM, THEY'RE HAVING TO MAKE THOSE CHOICES CUZ THEY'RE NOT BEING MADE AT THE SAME TIME.

UH, THERE WAS A QUESTION THAT, UM, COUNCIL

[74. Approve a resolution relating to balancing development requirements that reduce development capacity or affordability with options that offset those requirements; and initiating amendments to Titles 25 and 30 of the City Code.]

AND THERE WAS SOME CONCERN ABOUT GIVING STAFF THE DISCRETION TO BE ABLE TO ORIGINATE, TO COME BACK TO US WITH A MITIGATION MEASURE.

I DON'T KNOW THE WAY AROUND THAT YET.

SO IF STAFF HAS A THOUGHT OR A SUGGESTION ON, ON THE LOGISTICS OR THE CHOREOGRAPHY OF HOW TO MAKE 74 WORK, I AM ALL EARS ON THAT.

BUT IT'S JUST REALLY IMPORTANT TO ME THAT ON THE DAY THAT WE VOTE FOR ONE, WE'RE VOTING FOR THEM BOTH SO THAT WE CAN HONESTLY AND TRANSPARENTLY SAY THAT WE'RE NOT MAKING A CHOICE.

WE'RE BOTH GETTING THE COMMUNITY BENEFIT WE WANT TO GET, BUT WE'RE DOING IT IN A WAY THAT DOESN'T INCREASE UH, UH, HOUSING COST OR DIMINISH SUPPLY.

SO THAT'S THE INTENT.

74 BIT OF STAFF COULD HELP WITH THAT.

WE WOULD APPRECIATE IT.

OKAY, SO ON THE PULLED AGENDA, IF NO ONE HAS ANY QUESTIONS ABOUT THAT, THAT LEAVES, UH, JUST, UH, ITEM

[39. Approve a resolution directing the City Manager to draft an ordinance that authorizes the property located at 2400 South Congress Avenue to obtain a Type 2 Non-Peak Hour Permit for Concrete Installation]

NUMBER 39, UM, COUNCIL TOVA, THAT IS YOUR ITEM.

I'M GONNA NEED TO GO.

SO IT'S OKAY WITH YOU.

I'M GONNA GIVE YOU BOTH THE CHAIR AND 39 FOR YOU TO BE ABLE TO RAISE THEN CLOSE OUT THE MEETING.

SURE, THANK YOU.

AND I, I ALSO RAISED ONE ON, I RAISED, I ALSO PULLED THE ITEM ON CONSTRUCTION COUNCIL MEMBER ENTRY IS, BUT I REALLY PULLED THE REAL ESTATE ITEM.

UM, I POSTED IT I THINK ON, ON OR AROUND THE 21ST OR THE 23RD AND, AND DID SO TO MAKE SURE THAT PEOPLE HAD AN OPPORTUNITY TO ASK QUESTIONS.

SO I JUST PULLED IT TODAY TO, TO AFFORD THE OPPORTUNITY TO ASK QUESTIONS ABOUT IT IF ANYONE HAS ANY.

AND UM, UH, ITEM 39 IS, UH, I'M JUST TRYING TO HELP HEB.

UH, THEY HAVE POOR CONCRETE THERE AND UH, THERE IN THE DAY, TRAFFIC

[03:25:01]

IS VERY, I MEAN IT'S, IT IS HARD.

I IT'S BAD.

AND UH, YOU KNOW, IT'S, WE'RE JUST TRYING TO FIGURE OUT A WAY WHERE WE COULD HELP OUT THE, THE, THE COMMUTERS THERE TO GET THROUGH THERE AND THEY WENT OUT AND HEB WENT OUT THERE AND TALKED TO THE NEIGHBORS AND THEY CAME INTO AN AGREEMENT THAT, UH, THEY WOULD GET $300 GIFT CARDS FOR EVERY DAY THAT, THAT THEY WOULD HAVE TO POUR CONCRETE AND THEY CAN USE IT FOR ANYTHING.

SO, UH, UH, THAT'S THEIR AGREEMENT THAT THEY REACH WITH THE NEIGHBORS.

SO, SO I GUESS, WHY DON'T WE TALK ABOUT THAT ITEM FIRST AND THEN WE CAN SHIFT TO THE REAL ESTATE ONE THAT'S, THAT IS ALSO PULLED COUNCIL MEMBER.

UM, CAN YOU TELL ME WHICH CAN YOU TELL ME WHICH WHO THEY, WHO THEY REACHED OUT TO? I DID REACH OUT TO H HEB TWO, BUT I HAVEN'T HEARD BACK, BUT THIS IS, WE REACHED OUT TO THE PEOPLE THAT WAS GONNA GET AFFECTED BY THE SOUND, THE, THE BEEPING SOUND THAT THAT COMES WITH POURING TO CONCRETE.

AND UH, SO THEY REACHED OUT TO, TO ALL THE NEIGHBORS THAT WERE GONNA BE AFFECTED THAT BACKS UP TO THE, TO THEIR PROPERTY LINE.

UM, IT WOULD BE HELPFUL TO GET JUST A LITTLE BIT MORE INFORMATION ABOUT THAT.

SO I, YOU KNOW, YOU, YOU REPRESENT AN AREA WHERE THIS IS THE CASE TOO, BUT BECAUSE I REPRESENT THE CENTRAL BUSINESS DISTRICT THAT DOES HAVE OVERNIGHT CONCRETE POURING, I CAN TELL YOU THAT THAT SOUND, THAT SOUND TRAVELS BEYOND JUST THE IMMEDIATE AREA.

AND SO WHEN I SAW THIS RESOLUTION THAT WOULD APPLY THOSE, THOSE STANDARDS FOR DOWNTOWN TO AN AREA THAT IS NOT IN DOWNTOWN, UM, YOU KNOW, ONE OF THE, ONE OF MY FIRST QUESTIONS IS TO MAKE SURE, YOU KNOW, TO GET SOME SENSE OF WHO THEY'VE REACHED OUT TO.

AND SO I THINK THERE ARE, THERE ARE PROBABLY THREE DIFFERENT NEIGHBORHOODS THAT ARE IMMEDIATELY ADJACENT TO THAT GALINDO, WHICH YOU REPRESENT GOLDEN, WHICH I REPRESENT, UM, AND TRAVIS HEIGHTS, WHICH I ALSO REPRESENT.

AND SO, UH, I DON'T KNOW IF YOU HAVE ANY MORE DETAILS ON WHO HEB HAS BEEN WORKING WITH OR WHO THEIR IMMEDIATE NEIGHBORS ARE.

I KNOW THERE'S THE LUCETO APARTMENTS RIGHT ACROSS THE STREET.

I ASSUME THAT'S PART OF WHO THEY'VE REACHED OUT TO.

I DON'T KNOW IF THEY'RE WORKING WITH THE TENANT, UM, THE TENANT ORGANIZING COMMITTEE OVER THERE OR IF THAT'S, I I'M, I'M NOT EVEN CERTAIN THAT THEY WENT OUT THAT FAR OR WHETHER THEY, THEY REACHED OUT TO THE WHOLE AREA.

UH, I KNOW THAT THEY REACH OUT TO THE IMMEDIATE NEIGHBORS, BUT I MEAN, YOU CAN MAKE AN ARGUMENT FOR, YOU KNOW, MAYBE THE, ALL OF ALL THAT WHOLE AREA I GUESS.

I MEAN, UH, IF YOU'RE SAYING THAT THE CONCRETE IS GONNA AFFECT THE WHOLE NEIGHBORHOODS, UH, I REALLY DON'T KNOW.

I, UH, WELL WHAT I'VE SEEN IS THAT IT'S NOT GONNA BE A HIGH LEVEL TYPE POURING CONCRETE, IT'S JUST A FOUNDATION THAT THEY HAVE TO POUR AND THEY JUST DON'T WANT TO DISRUPT THE TRAFFIC THAT'S GONNA HAPPEN DURING THE DAY.

SO I DON'T KNOW WHAT'S GONNA BE WORSE THAN POURING AT THE END OF THE DAY AND DISRUPT THE TRAFFIC FOR ALL DAY LONG AND THE COMMUTERS HAVING TO REDIRECT TRAFFIC OR JUST DOING IT AT NIGHT WHEN THERE IS NO TRAFFIC.

SO CAN WE, I WONDER, I SEE THAT MR. RESTO IS HERE.

DO YOU HAVE A SENSE OF HOW, I DON'T KNOW IF YOU'RE WORKING WITH THE APPLICANT, IF YOU HAVE A SENSE, YOU KNOW, I THINK IF WE'RE TALKING ABOUT A COUPLE NIGHTS, THAT'S, THAT'S ONE THING IF WE'RE TALKING ABOUT, UM, I MEAN MY SENSE OF IT IS THAT WE'RE TALKING ABOUT LOTS AND LOTS AND LOTS OF NIGHTS, UM, OF DISRUPTED SLEEP.

BUT COULD YOU, I GUESS COULD YOU HELP US, UM, UNDERSTAND, ARE YOU FAMILIAR WITH THE REQUEST? DID YOU HEAR IT FROM, HAVE YOU BEEN WORKING WITH HEB ON THIS REQUEST AND CAN YOU HELP US UNDERSTAND, YOU KNOW, THE CONCRETE POORS, I MEAN WE'VE, WE'VE SPENT A FAIR AMOUNT OF TIME ON CONCRETE POOR COUNCILS OVER THE YEARS AND, AND MAYBE YOU CAN GIVE US A LITTLE HISTORY OF WHY THE, WHY THEY ARE WHERE THEY ARE AND IN TERMS OF HOURLY RESTRICTIONS YES, COUNCIL, THE, THE ISSUES ACTUALLY HANDLED BY THE DEVELOPMENT SERVICES DEPARTMENT, BUT I WAS FAMILIAR OBVIOUSLY WHEN WE DID THE ORDINANCE BACK FEW YEARS AGO.

UM, MY UNDERSTANDING, MY BROAD UNDERSTANDING, UM, IS THAT, UM, IT'S A TRAFFIC ISSUE AS COUNCIL MEMBER, UH, TALKED ABOUT.

UM, IT ALSO HAS TO DO WITH TIMING THAT ONCE YOU START YOU CAN'T STOP.

YOU NEED TO CONTINUE.

AND I'VE ALSO HEARD THAT SOMETIMES IT CAN HAVE TO DO WITH THE, UH, FRANKLY THE TEMPERATURE THAT IT'S, IT'S BETTER TO DO IN THE EVENING, UH, WHEN THE TEMPERATURE COOLER RATHER THAN THE DAYTIME WHEN IT'S HOT.

THAT'S MY LIMITED KNOWLEDGE OF CONCRETE POURS.

I'M SORRY, .

NO, I REMEMBER.

I MEAN I JUST, AND AND PARTLY I JUST CALLED ON YOU CUZ THERE YOU WERE.

AND I REMEMBER WE SPEND A LOT OF HOURS TALKING ABOUT CONCRETE POUR BECAUSE THERE WERE SOME REALLY STRONG FEELINGS AND IT WAS A VERY LONG STAKEHOLDER PROCESS TO, TO LOOK AT CHANGES, UM, TO THE HOURS.

AND YOU KNOW, WE HEARD FROM LOTS AND LOTS AND LOTS OF RESIDENTS ABOUT DOWNTOWN ABOUT, UM, THE NEED TO REALLY MAKE SURE THAT THERE WERE VERY STRICT LIMITS ON THOSE BECAUSE IT IS PRETTY DISRUPTIVE.

UM, I THINK THAT MANY OF THOSE WERE MULTI-STORY BUILDINGS THAT EACH HAD ITS OWN LAYER

[03:30:01]

OF CONCRETE.

I DON'T KNOW HOW LONG THE HEB IS ESTIMATED TAKE, BUT I IMAGINE IT WOULD BE MUCH LESS THAN A HIGH RISE.

IT WOULD BE HELPFUL TO GET SOME MORE DETAILS FROM DEVELOPMENT SERVICES ABOUT THIS PROJECT AND, UM, AND WHAT, YOU KNOW, WHAT WE'RE TALKING ABOUT IN TERMS OF THE NUMBER OF DAYS.

IT SOUNDS LIKE ONE IS STARTING, YOU KNOW, THE ONLY ONE THAT IT, UM, AS I UNDERSTAND THE RULES, THEY'RE CURRENTLY, LET'S SEE, CURRENTLY IT WOULD ALLOW FOR CONCRETE, I MEAN THE, WITHOUT THIS CHANGE THEY WOULD NEED TO POUR CONCRETE BETWEEN 7:00 AM AND 10 30 I THINK, RIGHT.

UNLESS YOU'RE MID POURING AT 10 30 AND THEN I THINK YOU'RE ALLOWED TO GO A LITTLE BIT OVER SO IT DOESN'T, UM, TO, TO HANDLE THE ISSUE YOU TALKED ABOUT ONCE YOU'VE STARTED YOU'VE GOTTA STOP.

BUT THIS WOULD, I THINK ALLOW IT TO GO FROM, TO GO OVERNIGHT FROM 7:00 PM TO SIX.

AND THE RESOLUTION TALKS ABOUT THAT FIRST ONE STARTING AT 2:00 AM ON DECEMBER 5TH.

BUT DO YOU HAVE A SENSE OF HOW MANY NIGHTS, YOU KNOW, HOW MANY 2:00 AM NIGHTS ARE WE TALKING ABOUT WITH, WITH REGARD TO THIS PROJECT? SURE.

COUNCIL MEMBER, I WANTED TO RECOGNIZE BRIAN BLOCK WHO'S ALSO ON THE CALL FROM DSD AND THUS FAR WHAT WE HAVE IN FRONT OF US IS THE COUNCIL RESOLUTION TO EXEMPT THIS.

I DON'T KNOW IF WE'VE ACTUALLY RECEIVED ANY INFORMATION FROM THE APPLICANT AT THIS STAGE WITH REGARD TO WHAT THEIR INTENTION IS, AND BRIAN CAN CORRECT ME IF I'M WRONG.

BUT, UH, TO THE EXTENT THAT YOU ALSO HAVE QUESTIONS, UH, FOR THESE QUESTIONS OR OTHER QUESTIONS, WE CAN CERTAINLY RESPOND TO THOSE IN THE Q AND A.

DO YOU NEED ME TO WRITE THOSE UP OR CAN WE JUST THAT WOULD, THAT WOULD BE GREAT.

JUST, UM, IF WE HAD THOSE IN WRITING, WE CAN ALSO OF COURSE, UM, UM, PUT THEM IN WRITING AND SEND THEM TO YOUR OFFICE TO CLARIFY THAT WE'VE GOT THEM CORRECT.

UM, AS WORDED, UH, BRIAN, DO YOU HAVE MUCH MORE INFORMATION FROM HEB WITH REGARD TO THEIR, WHAT THEY'RE REQUESTING, UH, BRIAN BLOCK WITH THE DEVELOPMENT SERVICES DEPARTMENT? UM, NO, WE DON'T HAVE INFORMATION ON WHAT THEY'RE REQUESTING.

YOU KNOW, WE JUST SEE WHAT'S IN THE DRAFT RESOLUTION.

UM, AND IT LOOKS LIKE FROM THAT DRAFT RESOLUTION, THEY'RE LOOKING TO START DECEMBER 5TH AND HAVE SOME LEVEL OF POURING THROUGH APRIL, 2023.

BUT NO, WE HAVEN'T HAD ANY, ANY INFORMATION OR DIRECT COMMUNICATION YET.

SO I, I THINK OUR DEADLINE FOR GETTING Q AND A IN MIGHT BE TODAY AFTERNOON.

AND, AND SO SINCE WE'RE HERE AND I'M GONNA HAVE A FOUR O'CLOCK MEETING, I'M JUST NOT GONNA BE ABLE TO GET THOSE QUESTIONS IN ON TIME.

SO I WOULD ASK SURE.

UM, IF I CAN JUST SORT OF LIST THEM OUT.

IF WE COULD GET INFORMATION FROM, THROUGH OUR DEVELOPMENT SERVICES ABOUT THE NUMBER OF PORES AND THE HOUR OF PORES AND THE LENGTH OF THOSE PORES, UM, DIS BETWEEN NOW AND THEN BETWEEN DECEMBER 5TH AND APRIL, 2023 OR BEYOND, YOU KNOW, TO WHAT, WHAT'S THE TOTAL NUMBER OF PORES, WHAT ARE THE CONTEMPLATED HOURS, WHAT ARE THE NUMBER OF, I THINK THAT COVERS IT, NUMBER OF, NUMBER OF PORES, UM, DURATION OF THOSE PORES.

AND, AND ALSO IF YOU COULD PROVIDE A LITTLE BIT OF BACKGROUND ABOUT, ABOUT THE COUNCIL CONVERSATION THE LAST TIME WE CONSIDERED EXTENDING, I CAN'T REMEMBER EXACTLY WHAT WE WERE CONSIDERING.

I THINK WE WERE CONSIDERING CHANGING THE HOURS OF OVERNIGHT CONCRETE PORES DOWNTOWN ONLY.

UM, BUT IF, IF YOU COULD PROVIDE US WITH A LITTLE BIT OF BACKGROUND TO THAT OR MAYBE A LINK TO SOME OF THAT INFORMATION ABSOLUTELY WE CAN, AND WE, UH, MAY HAVE TO GET THE HEB CONTACT FROM COUNCIL MEMBER AND, AND THEN WE WILL ASK THEM TO PUT THAT INFORMATION IN A LETTER TO US.

THE OTHER PIECE OF INFORMATION THAT WOULD BE VERY VALUABLE, I'LL GET THAT FOR YOU.

THANK YOU COUNCIL MEMBER.

AND THEN THE OTHER PIECE OF INFORMATION THAT WOULD BE REALLY VALUABLE IS EXACTLY WHO THEY REACHED OUT TO AND, AND WHO THEY CONTACTED AS PART OF THEIR OUTREACH.

AND AGAIN, I, I DID SEND UH, A NOTE TO MY CONTACT, BUT I'M NOT SURE IF MY CONTACT IS STILL THE MOST RECENT ONE.

BUT IT'D BE GOOD TO, GOOD TO HAVE THAT.

MM-HMM.

? UM, YES COUNCIL MEMBER MORALES.

I THINK WAS ALREADY DETERMINED TO BE INSUFFICIENT FOR THAT USE.

UM, I ALSO HAVE A QUESTION.

I KNOW THAT UM, THIS IS THE ONE AT OLD TURF, CORRECT? YES.

CONGRESS AND OLD TURF.

UM, SO I THINK I KNEW THIS, I JUST HEARD THIS THROUGH THE GRAPEVINE.

YOU KNOW HOW NEIGHBORS TALK AND YOU KIND OF LEARN A LITTLE BIT MORE IF YOU'RE ACTUALLY IN THE NEIGHBORHOOD OR AT THE BARBERSHOP, THEN YOU MIGHT GET OTHERWISE.

UM, BUT WHAT I HAD HEARD WAS THEY HAD ORIGINALLY WANTED TO RELOCATE TO THE OPPOSITE CORNER AND THE TRAFFIC PATTERNS WERE GOING TO BE HUGELY DISRUPTIVE FOR THAT PARTICULAR INTERSECTION, WHICH IS WHY THEY RETOOLED MOVING TEMPORARILY INTO THE NORTHEAST CORNER AND THEN REDEVELOPING THE SITE THEY'RE CURRENTLY ON IN THAT FOOTPRINT.

SO I'M CURIOUS ALSO ABOUT THE INTERPLAY OF THE TRAFFIC PATTERNS CUZ I BELIEVE THAT WAS SOMETHING THAT THEY HAD LOOKED AT EARLY ON AND REALIZED THAT EVERYBODY MAKING A LEFT TURN, GOING SOUTH ON CONGRESS TO GET TO THE GROCERY STORE TO GET THEIR, THEIR FOOD AND THEIR EXTRA, THEIR EXTRA MEALS FOR THE NIGHT JUST WAS SOMETHING THAT WASN'T GREAT FOR THAT PARTICULAR INTERSECTION AND HOW MANY CARS IT CAN CARRY THROUGH THOSE LEFT TURNS GETTING TO THE GROCERY STORE AND THEN TRYING TO GET BACK OUT GOING SOUTH.

UM, SO IF WE'RE LOOKING AT THOSE HOURS AND TRYING TO UNDERSTAND THE IMPACT ON THE, ON THE NEIGHBORS, I'D ALSO LIKE TO UNDERSTAND THE IMPACT ON A TRAFFIC PATTERN THAT

[03:35:01]

WE CAN, BRIAN, WE CAN GO BACK TO THEIR PREVIOUS SITE PLAN IF THEY HAD FILED IT FOR THAT, UH, PROPERTY THAT IS CADDY CORNER TO THEIR CURRENT UH, LOCATION AND JUST SEE WHAT UH, TRANSPORTATION COMMENTS WE CAN PULL FROM THERE.

THAT WOULD BE REALLY HELPFUL CUZ I'M THINKING THEY WANT TO BE ABLE TO MOVE QUICKER SO THAT THEY CAN GET THE TRAFFIC PATTERN BACK THE WAY THAT IT WORKS MORE EFFECTIVELY FOR THE NEIGHBORS.

OTHER QUESTIONS ON THIS ITEM? I DON'T SEE ANY.

UM, AND THEN AGAIN, I HAD PULLED THE REAL ESTATE, MY REAL ESTATE RESOLUTION TO SEE IF, IF ANYONE HAD ANY QUESTIONS FOR ME ON THAT ONE OR ANY OF MY CO-SPONSORS.

I'LL JUST NOTE COUNCIL MEMBER, UM, AS YOU MENTIONED, THE Q AND A IS, I THINK THE DEADLINE IS TODAY.

AND SO AT THIS POINT STAFF IS RESPONDING TO THE ORIGINAL RESOLUTION UNTIL WE HAVE A REVISED RESOLUTION.

BUT JUST WANTED TO MAKE SURE THAT YOU KNEW THAT UH, WE APPRECIATE ALL THE GREAT, UH, INTERACTION THAT OUR STAFF HAS HAD WITH YOUR STAFF.

UM, AND WE KNOW THAT THERE ARE CHANGES THAT ARE BEING CONTEMPLATED AND UH, WE WILL CONTINUE TO REVISE OUR COMMENTS BASED ON ANY REVISED RESOLUTION THAT IS PUT FORWARD AS WELL AT THIS POINT IN TIME.

YEAH, MANAGER, WE CAN GET YOU A DRAFT TODAY AND IT WAS MY UNDERSTANDING THAT TODAY IS THE DEADLINE FOR QUESTION QUESTIONS.

IT'S NOT THE DEADLINE FOR RESPONSES.