[CALL TO ORDER]
[00:00:02]
SO COMMISSIONER PENN AND MORIARTY, IF YOU COULD TURN ON YOUR CAMERAS AND WE ARE GONNA GET STARTED.
WE'RE KICKING OFF THE MEETING HERE AT 4 0 3, ALMOST 4 0 4.
UM, WE'RE GONNA CALL ROLL QUICKLY.
WE'LL START WITH THOSE PRESENT.
DO YOU HAVE ANY ABSTENTIONS OR RECUSAL? OH, SORRY.
COMMISSIONER, TRI DEAR QUESTION, THANK, OH YEAH, THANK YOU.
UH, PRESENT AND, UM, NO SIGNIFICANT QUESTIONS, BUT I DON'T KNOW IF WE CAN, I WOULD LOVE TO HEAR MORE ABOUT AQUA AND JUST WHERE YOU'RE COMING FROM, JUST FOR CONTEXT.
UM, SO WOULD LOVE A LITTLE DISCUSSION ON THAT, PLEASE.
THAT DOESN'T MEAN WE NEED TO PULL ANYTHING, RIGHT? SURE.
AND, UM, COMMISSIONER REYES? UH, NO QUESTIONS.
UM, COMMISSIONER ION, NO QUESTIONS, NO RECUSALS ONLINE, WE HAVE COMMISSIONER PENN PEN.
COMMISSIONER WOLSTONCROFT? NO QUESTIONS.
NO RECUSALS AND COMMISSIONER MORIARTY? NO QUESTIONS.
UM, DO WE HAVE ANY, UM, SPEAKERS TODAY? NO.
SO NO SPEAKERS TODAY, SO WE CAN MOVE ON TO
[APPROVAL OF MINUTES]
THE APPROVAL OF THE MINUTES FROM THE AUGUST 20TH REGULAR MEETING OF THE COMMISSION.IF FOLKS HAD TIME TO REVIEW THOSE, I COULD GET A MOTION TO APPROVE.
CAN I GET A SECOND? THE MOTION? MM-HMM
OH, NO, WE HAVE TO VOTE ON THAT, RIGHT? YES.
SO YOU GONNA RAISE YOUR HAND TO VOTE ON THAT? YOU IN FAVOR? IN FAVOR.
SO WE CAN MOVE ON TO THE VOTING ITEMS, THE CONSENT AGENDA.
UM, WE'LL BE PULLING ITEM NUMBER TWO.
SO WE CAN HAVE SOME DISCUSSION ON THAT.
ACTUALLY, ITEM FIVE, WE'RE GONNA HAVE A PRESENTATION FIRST.
SO FOR APPROVAL OF ITEMS THREE, FOUR, AND FIVE? NO, WE HAVE A PRESENTATION ON ITEM FIVE.
SO WE'RE GONNA HOLD OFF ON THAT FIRST TWO.
SO WE'LL PULL ITEMS TWO AND FIVE.
[Item 3 & Item 4]
THREE AND FOUR, COMMISSIONERS WOULD RAISE THEIR HAND IN FAVOR.NEED A SECOND? SECOND MS. SECOND.
[2. Recommend approval of an ordinance regarding water rates proposed by Aqua Texas, Inc., an investorowned utility, for its Travis County customers located in the City’s corporate limits in Council Districts 5, 8, and 10. Funding: This item has no fiscal impact. ]
TO, UM, I'LL READ ITEM NUMBER TWO AND THEN WE WILL DISCUSS IT PER COMMISSIONER TRULYS REQUEST ITEM NUMBER TWO SAYS, RECOMMEND APPROVAL OF AN ORDINANCE REGARDING WATER RATES PROPOSED BY AQUA TEXAS INC.AN INVESTOR OWNED UTILITY FOR ITS TRAVIS COUNTY CUSTOMERS LOCATED IN THE CITY'S CORPORATE LIMITS IN COUNCIL DISTRICTS FIVE, EIGHT, AND 10 FUNDING.
THIS ITEM HAS NO FISCAL IMPACT.
COMMISSIONER TRI, IF YOU WANTED TO ASK YOUR QUESTION, SO THANK YOU FOR THE TIME TO ASK QUESTIONS.
UM, TRULY OUT OF CURIOSITY, JUST HOW COMMON IS IT THAT THESE PRIVATE UTILITIES END UP WITH THESE SIGNIFICANT RATE HIKES? AND IN PARTICULAR, IT SEEMS LIKE FOR RETROACTIVE INVESTMENTS, THOUGH, PLEASE CLARIFY ANYTHING THAT I'M NOT STATING CORRECTLY.
UM, AND THEN REALLY THE QUESTION IS, IF THE RECOMMENDATION, I BELIEVE IS FOR A PUBLIC HEARING, THEN WHAT KIND OF, HOW DOES THAT WORK AND WHAT WOULD HAPPEN NEXT AND OR HOW HAS THAT PLAYED OUT MAYBE IN THE PAST? SO JUST A LITTLE MORE EDUCATION AROUND HOW THIS WORKS, PLEASE.
UH, JOSEPH GONZALEZ, UH, ASSISTANT DIRECTOR OVER FINANCIAL SERVICES WITH AUSTIN WATER.
UM, AND, AND FIRST OF ALL WITH, WITH REGARD TO THE FREQUENCY, WE
[00:05:01]
DON'T GET THESE, UH, VERY OFTEN.MOST OF, UM, YOU KNOW, MOST OF OUR CUSTOMERS WITHIN THE, THE CITY LIMITS ARE SERVED BY AUSTIN WATER.
WE HAVE VERY FEW, UH, THAT ARE SERVED BY OUTSIDE PROVIDERS.
UM, AQUA TEXAS IS, IS ONE OF THEM.
UM, I CAME TO AUSTIN WATER IN 2015 AND SINCE THEN, I BELIEVE THIS IS THE THIRD, UH, REQUEST FOR A, A RATE INCREASE.
UM, THE, THE 20 15 1 WASN'T AS SIGNIFICANT, BUT, UM, YOU KNOW, JUST LIKE WE'VE SEEN, UH, SIGNIFICANT INCREASES IN IN OUR COST, COST STRUCTURE, UH, I THINK OTHER UTILITIES ARE DOING THE SAME.
UH, THAT COUPLED WITH THE LENGTH OF TIME BETWEEN, UH, UPDATES, UH, I DON'T RECALL EXACTLY HOW LONG IT'S BEEN.
I THINK IT'S, UH, BEEN EIGHT TO 10 YEARS SINCE THEY'VE HAD AN UPDATE, ACTUALLY, MAYBE EVEN A LITTLE BIT LONGER.
UH, BUT, UM, WHEN THAT HAPPENS, CERTAINLY THERE'S, THERE'S A LOT OF CATCH UP.
UM, YES, I THINK SPECIFIC TO THIS ONE, UH, THIS REQUEST, UH, WOULD COVER ABOUT 197 CUSTOMERS, UH, THAT ARE WITHIN, UH, AUSTIN WATER'S FULL PURPOSE JURISDICTION.
UM, UH, BUT THE INTERESTING THING, ONE OF THE INTERESTING THINGS ABOUT THIS FILING IS, YOU KNOW, THEY FILED CONCURRENTLY WITH THE PUC, WHICH HAS OVERSIGHT, UH, FOR MANY OF THE AREAS THAT, THAT THEY SERVE, UM, SEEKING A STATEWIDE RATE.
UM, TYPICALLY WHEN, WHEN WE SEE THESE KINDS OF CASES, UH, THE, THE RATES ARE CALCULATED MORE AT A SYSTEM LEVEL.
UM, AND, AND SO IN, IN SEEKING A STATEWIDE RATE, YOU KNOW, IT'S, IT'S, IT'S BLENDED AND, AND CERTAINLY THERE'S, THERE'S WINNERS AND LOSERS IN, UM, YOU KNOW, IT IN THE MATH.
UM, AND THEN JUST WITH REGARD TO, TO SOME OF THE CATCHUP THINGS, UM, UH, I THINK THE, THE RCA NOTES THAT THERE WERE TWO PREVIOUS FILINGS WITH THE PUC, UM, THAT THEY'RE SEEKING RECOVERY, UH, FOR IN, IN THIS FILING THROUGH, UM, THROUGH A SURCHARGE.
AND, UH, YOU KNOW, THAT'S ONE OF THE THINGS THAT, THAT WE HAVE CONCERNS WITH.
AND SO, UM, IF WE PASS, OR, OH, MIKE, SORRY.
SO IF A THANK YOU FIRST OF ALL, VERY HELPFUL.
UM, AND SO IF THIS RESOLUTION PASSES, WOULD THAT THEN BIND AQUA TEXAS TO HOLD SOME KIND OF PUBLIC HEARING? OR DOES IT GO TO COUNCIL, LIKE, HELP ME KEEP LEARNING THE PROCEDURAL PROCESS? SO, COUNCIL HAS ULTIMATE AUTHORITY OVER, UM, ACCEPTANCE OR DENIAL OF ANY PROPOSED, UH, RATE INCREASE BY AN OUTSIDE UTILITY, UH, FOR CUSTOMERS WITHIN THE FULL PURPOSE, UM, YOU KNOW, WITHIN FULL PURPOSE, UH, CITY LIMITS.
UH, SO THIS WILL GO TO COUNCIL, AND WHAT WE'RE SEEKING IS A RECOMMENDATION OR, OR SUPPORT FOR OUR RECOMMENDATION TO COUNCIL TO, TO DENY THE REQUEST.
AND SO, UH, YOU KNOW, AN AFFIRMATIVE VOTE ON, ON THIS WOULD WOULD SAY THAT, UH, COMMISSION SUPPORTS THE RECOMMENDATION FOR DENIAL OF THE RATE INCREASE.
JOSEPH, CAN YOU PLEASE TALK ABOUT THE PUBLIC HEARING PART OF THE PROCESS? CERTAINLY.
WELL, THERE, THERE IS A PUBLIC HEARING, BOTH AT COUNCIL, BUT AS PART OF OUR REVIEW, UM, WE WILL BE HOLDING A PUBLIC MEETING WITH, THAT'S OPEN TO THE, UM, RESIDENTS OF THE COMMUNITY AS WELL AS, UM, REPRESENTATIVES OF, UH, AQUA TEXAS, UH, TO, TO TALK IN MORE DETAIL ABOUT, YOU KNOW, OUR REVIEW AND OUR RECOMMENDATIONS, UM, THAT IS SCHEDULED FOR SEPTEMBER 29TH, I BELIEVE.
I'M NOT SURE IF WE HAD THAT FINAL FORMALIZED THAT'S CORRECT.
SEPTEMBER 29TH AT 4:00 PM HERE IN THIS ROOM.
SO, SO WE'LL BE HOLDING THAT PUBLIC MEETING, UH, WHICH IS NOT NECESSARILY A PUBLIC HEARING.
UH, BUT THEN COUNSEL WILL BE HOLDING A PUBLIC HEARING, UH, WHEN, WHEN THEY, UH, TAKE THIS ITEM UP FOR REVIEW.
AND THEN LAST QUESTION WOULD BE, UM, JUST FLESH OUT THEN THE DENIAL.
I'M NOT REALLY QUESTIONING IT, BUT JUST TO KIND OF HEAR, HOW DO YOU CRYSTALLIZE, YOU KNOW, YOUR TWO OR THREE BULLET POINTS, WHY, WHY DENY THE RATE INCREASE? SO I THINK A COUPLE THINGS.
YOU KNOW, THE INCLUSION TRYING TO, TRYING TO RECAPTURE PREVIOUS COSTS, UM, FOR PREVIOUS PUC FILINGS, UM, YOU KNOW, THE SYSTEM WIDE RATE, WHICH, UM, ISN'T EQUITABLE AMONGST INDIVIDUAL SYSTEMS. UM, AND, AND THEN, UM, YOU KNOW, THE MAGNITUDE OF SOME OF THE INCREASES, UH, YOU KNOW, UH, YOU KNOW, AS WE LOOK AT, FOR EXAMPLE, SOUTHWEST REGION, UH, WHICH INCLUDES RIVER CREST AND, AND, AND MORELAND, PRIMARILY RESIDENTIAL, YOU KNOW, FROM A VOLUMETRIC RATE PERSPECTIVE, THEY'RE SEEKING 92% INCREASES AT, AT TIER ONE 106,
[00:10:02]
YOU KNOW, PERCENT INCREASE TIER TWO, UH, 1 49 FOR TIER THREE, UM, AND THEN 124% AT TIER FOUR.AND SO, UM, YOU KNOW, RECOGNIZING THAT IT'S BEEN A WHILE SINCE, SINCE THEY'VE HAD RATE INCREASES, UH, YOU KNOW, OUR RECOMMENDATION WOULD BE THAT, YOU KNOW, THOSE KINDS OF INCREASES BE PHASED IN OVER TIME RATHER THAN TRYING TO CATCH UP ALL AT ONCE.
UM, AND THIS ISN'T, I'M NOT QUESTIONING ANYTHING HERE, BUT CAN YOU SAY, TALK A LITTLE BIT ABOUT THE TERMS OF AQUA'S CONTRACT? IS IT ESSENTIALLY WHEN THEY SET RATES, IS THERE ASSUMED RISK ON THEIR END THAT THEY ARE THEY MAY ABSORB A LOSS? YEAH, SO AQUA TEXAS IS, IS, UM, A STANDALONE PROVIDER.
THEY PROVIDE WATER THROUGH, YOU KNOW, FOR, FOR SMALLER COMMUNITIES THROUGH THROUGHOUT THE STATE.
AND, UM, YOU KNOW, UM, SO THEY ARE RESPONSIBLE FOR, FOR CAPTURING THEIR, THEIR COST.
BUT, YOU KNOW, THEY, THEY WORK IN, YOU KNOW, THE STATEWIDE REGULATORY, UM, FRAMEWORK.
UM, ALSO WHEN, WHEN THEY SERVE INSIDE CITY CUSTOMERS, YOU KNOW, THEY HAVE TO, UH, THEY HAVE TO COME TO THE CITY TO GET IT APPROVAL.
AND, AND SO, UM, YOU KNOW, I THINK, YOU KNOW, THIS IS MY SPECULATION, BUT THAT THEY'RE SEEKING A STATEWIDE RATE TO SIMPLIFY THAT PROCESS AND, AND, AND TRY AND REDUCE RISK OF, OF, YOU KNOW, CERTAIN PARTS OF THEIR SYSTEMS BEING APPROVED OR, OR, OR DENIED.
UM, BUT, BUT YES, I MEAN, THEY'RE, UH, THEY'RE AN INVESTOR OWNED UTILITY AND THEY'RE RESPONSIBLE FOR, UM, YOU KNOW, GENERATING ENOUGH REVENUE TO COVER THEIR COSTS THE SAME WAY WE ARE.
THEY JUST HAVE THIS REGULATORY FRAMEWORK THAT THEY HAVE TO WORK WITH.
DOES ANYONE ELSE HAVE QUESTIONS? ANY OTHER COMMISSIONERS? NO.
JOSEPH, THANK YOU FOR THAT VERY DETAILED EXPLANATION.
IF I COULD GET A MOTION TO APPROVE THIS ITEM.
SO MOVED ITEM TWO, I SECOND THE, THE MOTION TO VOTE.
MOTION FOR FROM COMMISSIONER TRI, AND SECOND FOR COMMISSIONER MARLOW ALL THE WAY AROUND, FLIPPED IT AROUND.
MOTION FROM MARULA SECOND FROM TRULY PERFECT.
RAISE YOUR HAND FOR YOUR PROOF.
SO NOW WE'LL CALL THE PRESENTATION.
SO WE WILL JUMP THE VOTE ON ITEM FIVE.
UM, WE'LL MOVE TO ITEM NUMBER SIX
[6. Go Purple FY2025-2026 Pilot Incentives (related to Item 5) – Assistant Director Kevin Critendon and Supervising Engineer Katherine Jashinski]
FOR THE STAFF BRIEFING ON THE GO PURPLE FISCAL YEAR 25, 26 PILOT INCENTIVES.WE'LL GIVE CATHERINE A MOMENT TO TURN ON HER CAMERA.
WE HAVE, UM, SUPERVISING ENGINEER CATHERINE DINKY HERE TO, UM, MAKE THIS PRESENTATION AND APPRECIATE CATHERINE, YOU, UH, PHONING IN FROM HOUSTON.
SHE'S ACTUALLY AT, UH, THE 20TH ANNIVERSARY OF WATER REUSE TEXAS, UH, AT THEIR ANNUAL CONFERENCE, UM, AND HAS A BIG ROLE THERE.
SO APPRECIATE YOU, UH, PHONING IN FROM THERE.
CATHERINE, PLEASE TAKE IT AWAY.
UH, GOOD AFTERNOON COMMISSIONERS.
UM, I GUESS WE CAN JUST JUMP TO THE NEXT SLIDE TO GIVE A BACKGROUND ON OUR GOAL, OUR GO PURPLE PROGRAM, UM, WHICH IS AIMED AT EXPANDING WATER REUSE AND NEW DEVELOPMENT PROJECTS.
THIS IS A STRATEGY WITHIN OUR, OUR WATER FORWARD PLAN, UM, TO HELP STRETCH OUR WATER SUPPLIES FOR THE NEXT 100 YEARS.
GO PURPLE WAS ORIGINALLY ADOPTED BY COUNCIL IN MARCH OF 2024.
THE GO PER GO PURPLE PROGRAM INCLUDES CODE CHANGES, UM, THAT REQUIRE ONSITE WATER REUSE SYSTEMS AND RECLAIMED WATER CONNECTIONS AND NEW COMMERCIAL MULTIFAMILY DEVELOPMENTS.
IT ALSO INCLUDES AFFORDABILITY STRATEGIES FOR REUSE PROJECTS IN THE FORM OF INCENTIVES AND, UH, COST PARTICIPATION, WHICH WE'LL GO OVER IN THIS PRESENTATION.
AND THEN IT ALSO INCLUDES A NEW COMMUNITY BENEFIT CHARGE, UH, ON EVERY, UH, UTILITY RATE PAYERS.
BILL ADDS 15 CENTS PER THOUSAND GALLONS, UM, TO FUND THE, UH, RECLAIMED WATER SYSTEM EXPANSION AND, UM, SOME OF THESE INCENTIVES.
AGAIN, THIS IS JUST A, A, YOU KNOW, ONE, ONE SLIDE ON THE WATER FORWARD PLAN.
AND THE STRATEGIES WATER FORWARD WAS RECENTLY UPDATED IN, IN 2024,
[00:15:02]
UM, INCLUDES THE WATER CONSERVATION STRATEGIES IN YELLOW, OUR MORE TRADITIONAL WATER SUPPLY STRATEGIES IN BLUE.AND THEN THE NON-POTABLE REUSE STRATEGIES IN PURPLE ARE, UM, WHAT THE GO PURPLE PROGRAM IS ALL PART OF.
SO I'LL JUST GO OVER THE, THE NEW CODE REQUIREMENTS THAT ARE, ARE PART OF GO PURPLE, UH, AND THEY APPLY TO LARGE DEVELOPMENT PROJECTS.
UM, AND THO THOSE ARE, UM, UM, WITHIN THE CODE, THOSE ARE DEFINED AS COMMERCIAL AND MULTIFAMILY PROJECTS THAT HAVE 250,000 SQUARE FEET OR MORE OF GROSS FLOOR AREA WITHIN THEM.
AND SO THERE'S KIND OF TWO TIERS OF, UM, REQUIREMENTS FOR THOSE LARGE DEVELOPMENT PROJECTS.
IF YOU ARE WITHIN 500 FEET OF OUR RE EXISTING RECLAIMED WATER, UH, PURPLE PIPE NETWORK, THE CODE REQUIREMENT IS FOR YOU TO EXTEND THE MAIN ALL THE WAY TO YOUR PROPERTY, AND THEN DUAL PLUM YOUR BUILDING SO THAT YOU CAN USE THAT WATER FOR NON-POTABLE USES LIKE TOILETS AND URINALS, IRRIGATION AND COOLING TOWERS.
AND THEN, UH, IF YOU'RE GREATER THAN 500 FEET FROM THE RECLAIMED WATER SYSTEM, INSTEAD OF DOING THE RECLAIMED MAIN EXTENSION, YOU HAVE TO CAPTURE RAINWATER AND CONDENSATE AND TREAT THE WATER FOR REUSE FOR THE SAME NON-POTABLE NEEDS, UH, THE TOILETS, IRRIGATION, AND, AND COOLING.
AND EVERY TIME YOU ADOPT A NEW CITY CODE REQUIREMENT IN AUSTIN, YOU HAVE TO DO AN AFFORDABILITY IMPACT STATEMENT.
AND SO THE THIRD COLUMN IN THIS CHART IS SHOWING, UH, THE IMPACT OF THE CODE REQUIREMENTS ON, ON HOUSING SPECIFICALLY, UM, BEFORE ANY ADDITIONAL INCENTIVES, UM, WERE, UM, ADOPTED AS PART OF GO PURPLE.
AND SO, UM, SHOWING ON THE LOW END, UH, THE COST WOULD BE EIGHT TO $900 PER HOUSING UNIT IN, IN THESE TYPES OF DEVELOPMENTS.
AND ON THE HIGHER END IT WOULD BE IN THE 4,000 TO $7,000 RANGE.
UM, AND SO WHEN THAT, UH, INITIAL UM, ANALYSIS WAS DONE, WE GOT FEEDBACK FROM CITY MANAGEMENT TO, UM, DEVELOP THESE INCENTIVES AND, AND COST PARTICIPATION PROGRAMS TO HAVE BRING DOWN THE COST OF THESE SYSTEMS, UM, A BID.
AND SO, AND THE COLUMN ON THE FAR RIGHT IS SHOWING THAT REDUCED COSTS WHEN THESE GO PURPLE INCENTIVES ARE, UM, INCLUDED IN, UH, AS PART OF THE WHOLE GO PURPLE PROGRAM.
NEXT SLIDE HERE IS A SUMMARY OF THE DIFFERENT, UM, UH, INCENTIVES THAT, UH, THESE PROJECTS ARE ELIGIBLE FOR.
AND SO, AGAIN, STARTING WITH RECLAIMED WATER IN THE FIRST ROW, UM, YOU CAN GET A REBATE FOR A RECLAIMED MAIN EXTENSION.
IF YOU'RE EXTENDING, UH, MORE THAN 250 FEET OF RECLAIMED MAIN, WE WILL PAY, UH, AUSTIN WATER WILL REBATE 50% OF, UM, THE LAST BETWEEN 250 TO 500 FEET OF THAT MAIN EXTENSION.
SO WE COULD PAY UP TO A QUARTER, UM, OF, OF THE MAIN EXTENSION IF YOU WERE GOING THE FULL 500 FEET.
UM, BUT THAT IS CAPPED UP AT $500,000.
UM, ONSITE REUSE REBATE DOESN'T APPLY THERE, BUT WE DO OFFER, UM, A REBATE FOR THESE PROJECTS TO GO THROUGH THE EXPEDITED BUILDING PERMIT REVIEW PROCESS SO THAT THESE, UH, PROJECTS CAN BE PERMITTED QUICKER.
AND SO THAT COVERS UP TO $36,000 OF THE PERMITTING FEES.
UM, WE ALSO DO NOT CHARGE IMPACT FEES FOR RECLAIMED WATER METERS.
SO DEPENDING ON, ON THE SITE, UM, AND YOUR SPECIFIC WATER DEMAND, YOU CAN PAY REDUCED IMPACT FEES AND THEN ASSISTANCE WITH THE PACE PROGRAM.
THAT'S A PROGRAM THAT'S ACTUALLY, UH, ADMINISTERED BY THE TRAVIS, UH, COUNTY PACE AUTHORITY.
IT STANDS FOR PROPERTY ASSESS CLEAN ENERGY.
IT'S A FINANCING TOOL, UM, FOR INCORPORATING WATER EFFICIENCY INTO REDEVELOPMENT PROJECTS.
AND SO WE OFFER STAFF TIME TO HELP, UM, COMPILE THAT APPLICATION.
WE DID A STUDY A FEW YEARS AGO TO FIGURE OUT HOW THESE TYPES OF PENCIL PROJECTS COULD PENCIL OUT, AND SO WE HAVE SOME EXPERIENCE WITH THOSE APPLICATIONS FOR ONSITE WATER REUSE SYSTEMS IN THE BOTTOM ROW.
UM, YOU DON'T GET A, A RECLAIMED MAIN REBATE BECAUSE YOU'RE NOT CONNECTING TO THE RECLAIMED SYSTEM, BUT IF YOU ARE VOLUNTARILY INSTALLING AN ONSITE WATER REUSE SYSTEM OR GOING ABOVE AND BEYOND WHAT CODE REQUIRES YOU TO INSTALL FOR ONSITE WATER REUSE, UM, WE CAN PAY UP TO A HUNDRED PERCENT OF THE VOLUNTARY INSTALLATION CAPPED AT $500,000 PER PROJECT.
YOU ALSO CAN QUALIFY FOR THE EXPEDITED BUILDING PERMIT REVIEW.
WE SIMILARLY HAVE REDUCED IMPACT FEES FOR THOSE PROJECTS, AND THEN STAFF TIME FOR THE THE PACE PROGRAM.
[00:20:01]
UM, ONE THING THAT CHANGED IN DURING, UH, THIS FISCAL YEAR, UH, UH, WAS BASED ON SOME DIRECTION FROM COUNCIL WHEN THE GO PURPLE, UM, UH, PROGRAM WAS ADOPTED.THEY, UH, ASKED US TO LOOK AT INCREASING, UH, BASICALLY LOOKING AT IF WE COULD FULLY SUBSIDIZE, UM, THESE WATER REUSE STRATEGIES FOR DEEPLY AFFORDABLE HOUSING PROJECTS THAT ARE EXEMPT FROM THESE CODE REQUIREMENTS.
SO PROJECTS THAT HAVE 50% OF THEIR UNITS ON SITE THAT ARE, UM, RENTED OR OWNED AT 60 TO 80% OF THE MEDIUM FAMILY INCOME DO NOT HAVE TO, UH, MEET OUR WATER REUSE CODES.
HOWEVER, UM, UH, COUNCIL WAS CONCERNED WITH US BEING ABLE, HAVING THOSE PROJECTS BE ABLE TO BENEFIT FROM REDUCED UTILITY BILLS.
WHEN YOU INSTALL WATER RECYCLING SYSTEMS, YOU, YOUR TENANTS AND YOUR OWNERS WILL PAY LESS IN UTILITY FEES, UH, OR RATES EVERY MONTH.
AND SO, UM, THIS, THIS PROJECT OR THIS, UM, THE INCENTIVE CAP FOR THESE TYPES OF PROJECTS WAS INCREASED TO $1.5 MILLION THIS YEAR, AND THAT WAS ONE OF THE CITY MANAGER'S TOP 25 GOALS IS TO IMPLEMENT THIS PROGRAM BY THIS YEAR.
SO A SUMMARY OF, UH, KIND OF HOW THE PROGRAM WENT.
THIS, THIS PREVIOUS FISCAL YEAR, UM, WE HAD BUDGETED $4 MILLION FOR THE FISCAL YEAR AND WE, AGAIN, WE INCREASED THE PROGRAM CAP AND IT HAPPENED IN JUNE.
MAYBE SOME OF YOU REMEMBER THAT.
UM, IT'S JUST A FEW MONTHS AGO.
UM, WE INCREASED THE CAP TO 1.5 MILLION FOR EXEMPT AFFORDABLE HOUSING PROJECTS.
WE DIDN'T RECEIVE ANY INCENTIVE APPLICATIONS THIS FISCAL YEAR.
UM, WE HAVE RECEIVED TWO SINCE THE PROGRAM WAS INITIATED.
UM, BUT NONE THIS FISCAL YEAR NEW APPLICATIONS.
WE REPORT THE PROGRAM ACTIVITY QUARTERLY WITHIN THE NEW WATER MANAGEMENT STRATEGIES REPORT.
UM, AND JUST A REMINDER THAT THE INCENTIVE PROGRAM REQUIRES ANNUAL COUNCIL REAUTHORIZATION.
SO THAT'S WHY WE'RE, UH, IT'S NOW THAT TIME OF YEAR WHEN, WE'LL, WE'RE ASKING COUNCIL TO RE-AUTHORIZE THE PROGRAM FOR THE COMING FISCAL YEAR.
SO, UH, WE DO SEE A NEED TO CONTINUE THE PILOT PROGRAM FOR, UH, THE COMING FISCAL YEAR.
WE ARE GONNA CONTINUE, UH, THE, UM, TOTAL PROGRAM FUNDING AT 4 MILLION AND, AND KEEP THE, UM, CAPS AT NO MORE THAN 500,000 FOR PER STANDARD PROJECTS AND 1.5 MILLION FOR THE AFFORDABLE HOUSING PROJECTS.
WE ARE EXPECTING MORE PROGRAM PARTICIPATION THIS YEAR, UM, DUE BASICALLY TO THE TIMING OF DEVELOPMENT PROJECTS.
SO THE CODE REQUIREMENTS, THEY WENT INTO EFFECT, UM, MARCH OF 2024.
THESE PROJECTS NOW THAT YOU KNOW, THAT THEY, WHEN, WHEN THE REQUIREMENT IS TRIGGERED IS WHEN THEY'RE GOING THROUGH THE SITE DEVELOPMENT PERMIT STAGE.
UM, AND THAT TAKES, YOU KNOW, A, YOU KNOW, COULD TAKE AS QUICK AS SIX MONTHS TO, AS, YOU KNOW, UP TO 18 MONTHS TYPICALLY TO GO THROUGH THAT PROCESS.
AND SO WE'RE NOW RIGHT ABOUT, UM, UH, WITHIN THAT TIMEFRAME WHERE THESE PROJECTS ARE MOVING INTO THE BUILDING PERMIT PHASE.
AND SO SINCE THESE ARE REBATES, A LOT OF THESE INCENTIVES, UM, THIS, WE'RE ANTICIPATING THAT PROJECTS NOW ARE READY TO APPLY FOR SOME OF THESE REBATES, LIKE THE EXPEDITED PLAN REVIEW PERMIT AND THE RECLAIM MAIN EXTENSION, UM, REBATE.
AND SO IT'S TAKEN SOME TIME TO BE ABLE TO GET THESE PROJECTS TO EVEN QUALIFY OR BE ELIGIBLE, UM, BASED ON THE REBATE STRUCTURE.
AND I THINK THAT IS THE LAST SLIDE, IF THERE ARE ANY QUESTIONS.
THANK YOU FOR THAT PRESENTATION.
UM, COMMISSIONERS, DO YOU HAVE ANY QUESTIONS, COMMISSIONER QUESTION? UH, THANKS.
I APPRECIATE YOU DOING IT, UH, REMOTELY FROM HOUSTON AS WELL.
UM, QUESTION ABOUT THE TIMING OF THE REBATE.
UH, THE REBATE FOR RECLAIMED MAIN EXTENSION.
I THINK IT WAS MENTIONED THAT IT MAY COME THROUGH EITHER THROUGH SITE PLAN PERMITTING PROCESS, UM, AND I UNDERSTAND THAT EXPEDITED BUILDING PERMIT REVIEW WOULD BE PROBABLY AT THAT PHASE AS WELL.
UH, COULD YOU EXPLAIN FURTHER ON THE TIMING OF THE 50% UP TO $500,000 FOR MAIN EXTENSIONS? UH, DOES IT MAKE SENSE TO HAVE THAT DURING THE SITE PLAN PHASE OR IS THAT MORE OF WHEN THE LINE IS INSTALLED AND ACCEPTED WHEN YOU'RE GOING THROUGH, UH, SITE AND SUBDIVISION
[00:25:01]
COST AND QUANTITIES? CAN YOU KIND OF WALK THROUGH THAT IF YOU HAVE SOME, UM, KNOWLEDGE OF THE TIMING OF WHEN THAT HAPPENS? YEAH, SURE.AND, AND THAT'S A GOOD QUESTION.
UM, BECAUSE OF THESE PROJECTS BUILD OUT OVER MULTIPLE YEARS, IT'S A, THE APPLICATION PROCESS IS, UH, MULTI-STAGE.
AND SO WHEN YOU ARE, UM, YOU CAN APPLY DURING THIS, THE SITE PLAN PERMITTING PHASE, IF YOU HAVE, YOU KNOW, ALREADY LIKE A CONSTRUCTION SCHEDULE KIND OF IN MIND, AND WHEN YOU APPLY, WE, UM, YOU KNOW, YOU SUBMIT YOUR, UM, COST ESTIMATES AND YOU, YOU KNOW, THERE'S AN APPLICATION FORM AND AT THAT POINT WE ISSUE A RESERVATION LETTER FOR YOU TO SAY, YOU KNOW, WE'RE, WE'RE AUTHORIZED TO ISSUE THESE INCENTIVES IN THIS FISCAL YEAR.
WE REALIZE IT'S GONNA TAKE YOU A COUPLE YEARS TO BUILD OUT THE SYSTEM.
I MEAN, WE GIVE THEM THREE YEARS FROM THE POINT OF RESERVATION OF FUNDS TO ACTUALLY, UM, COME, UH, CLAIM THE REBATE.
AND SO, UM, SO THAT'S BASICALLY, IT'S, IT'S KIND OF THE TIMING.
AND SO IT'S, WE, IT'S ALL WITHIN THE GUIDELINES.
WE EXPLAIN IT THAT LIKE, YOU KNOW, ME AND WE, UM, SORT OF EXPLAIN TO THE APPLICANTS THAT IT'S, UM, A MULTI-STAGE PROCESS THAT, UM, YOU KIND OF HAVE TO TIME WITH YOUR PARTICULAR CONSTRUCTION OF YOUR, OF YOUR PROJECT.
YEAH, I THINK THAT MAKES SENSE BECAUSE A LOT OF TIMES DURING CONSTRUCTION, IT, LIKE HOW YOU SAID IT, IT DOES EXTEND OUT IN TIME.
UH, SO IF THERE'S ANY POSSIBLE WAY TO KIND OF RECTIFY FROM THE COST ESTIMATE FROM THE TIME OF APPLICATION AND PERMITTING TO MAYBE MORE TOWARDS THE END, ONCE WE ACTUALLY GET COSTS AND QUANTITIES FROM A CONTRACTOR, I THINK THAT MAY HELP RESOLVE AND ANY POTENTIAL DISCREPANCIES ON THE COST ESTIMATE VERSUS THE ACTUAL COSTS, UM, SO THAT SOMEONE DOESN'T OVERINFLATE SOME COSTS OR IF SOME SUPPLY CHAIN ISSUES CAUSE ANY CHANGES IN QUANTITIES AND COST AND QUANTITIES, UM, FOR THEIR PROJECT, THERE MAY BE AN OPPORTUNITY FOR THE DEVELOPER, UH, TO, TO GET UP TO A CERTAIN PERCENTAGE IF THEY HAVEN'T MET IT YET.
AND I JUST WANTED TO KINDA MAKE THAT STATEMENT.
AND THERE, THERE IS SOME FLEXIBILITY THERE OF JUST, YOU KNOW, GETTING, GETTING THEIR, YOU KNOW, INITIAL ESTIMATES RESERVED AND THEN AT THE END THEY BRING IN THEIR, THEIR, YOU KNOW, THEIR RECEIPTS AND THEIR COSTING QUANTITIES AND THEN WE, UM, HAVE THE ABILITY TO PAY MORE IF IT DID, YOU KNOW, GO OVER SOME, BUT, YOU KNOW, WITHIN, WITHIN REASON.
ANY OTHER QUESTIONS? WELL, I, I GUESS JUST SO I UNDER, OH, SORRY, YOU DIDN'T REC, JUST UNDERSTAND THE BUDGETING PROCESS.
DOES THIS MEAN THAT YOU'RE LOCKING IN AND RESERVING FEES FROM THE FISCAL YEAR AT THE TIME OF THE APPLICATION AND YOU MIGHT BE ALLOCATING IT IN YEARS, SUBSEQUENT YEARS IF, DEPENDING ON THE LENGTH OF THE PROJECT? YEAH, YEAH, WE DIDN'T, WE COULDN'T REALLY FIND A WAY AROUND THAT BASED ON HOW THESE, THESE PROJECTS, UH OH.
JUST, IS THAT JOSEPH COMING TO SPEAK ABOUT THAT
SO, UM, AS, UH, CATHERINE MENTIONED, YOU KNOW, WE'RE CURRENTLY BUDGETING ABOUT $4 MILLION A YEAR.
UM, NOW THE PROGRAM'S BEEN IN PA PLACE SINCE 2024.
SO WE, WE'VE STARTED TO ACCUMULATE SOME FUNDING, UM, YOU KNOW, AS THE PROJECTS HAPPEN AND AS THEY REACH THE MILESTONES NECESSARY TO PAY OUT, YOU KNOW, IT, IT, IT COULD BE, YOU KNOW, A YEAR OR TWO DOWN THE ROAD.
AND, AND SO, YOU KNOW, IN THE EVENT THAT WE START TO SEE THEM, UM, YOU KNOW, COME IN AT A RATE THAT'S QUICKER THAN $4 MILLION, YOU KNOW, WE'LL BE ABLE TO TAP INTO THOSE FUNDS THAT HAVE ALREADY BEEN COLLECTED AND ARE, AND ARE BEING RESERVED, UM, YOU KNOW, TO, TO PAY OUT IN THE EVENT WE EXCEED THAT $4 MILLION BUDGET WE CAN TAP INTO TO, TO THE RESERVES.
AND THEN AS WE SEE, UM, YOU KNOW, MORE CONSISTENT HISTORY AND TRENDS, THEN WE CAN ADJUST THE BUDGET AS NECESSARY.
UM, SO THE CAP, I GUESS IS $500,000 ON IT.
DO WE HAVE A SENSE FOR WHAT THOSE ONSITE WATER RE REUSE SYSTEMS COST AND WHAT PERCENTAGE OF THE TOTAL COST THAT 500 K WOULD COVER? YEAH, THEY, THEY CAN RANGE DEPENDING ON THE COMPLEXITY AND THE WATER SOURCE AND THE SIZE.
AND SO AT MOST WE ESTIMATE THEY WOULD COST 1.5 MILLION.
UM, AND, UM, BUT THEY COULD ALSO COST, YOU KNOW, AS, AS LITTLE AS, AS $500,000
[00:30:01]
DEPENDING ON THE, YOU KNOW, THE PROJECT SPECIFICS.DOES ANYBODY HAVE ANOTHER QUESTION? NO.
AS WE'RE, AS WE'RE TALKING, I'M THINKING ABOUT SOME THINGS A LITTLE BIT MORE, UM, FOR THE DISTANCE TO RECLAIMED WATER MAIN, I UNDERSTAND THAT AS THE SYSTEM IS GETTING BUILT OUT, THERE ARE PROPOSED PLANS THAT GO IN AND SO YOU MIGHT SEE THEM AS UPCOMING PROJECTS AND SO ON.
IS THAT DISTANCE BASED OFF OF INSTALLED AND ACCEPTED, OR IS THAT BASED OFF OF PLANNED? I, SO FAR WE HAVEN'T HAD TO FIGURE OUT, I MEAN, USUALLY INSTALLED AND ACCEPTED SHOWING UP IN OUR SYSTEM MAP AS AN AVAILABLE, UM, RECLAIMED WATER PIPE THAT YOU CAN CONNECT TO.
WE DO, UM, REACH OUT TO, UM, CUSTOMERS THAT ARE ALONG OUR CIP LINES.
AND SO IF A PROJECT IS COMING IN, UM, YOU KNOW, FOR A SITE DEVELOPMENT PERMIT AND WE KNOW WE HAVE, UM, MAINS PLANNED ALONG THAT ROUTE, WE ARE REACHING OUT TO THEM TO LET THEM KNOW ABOUT THESE INCENTIVES.
UM, BUT AGAIN, IF, YOU KNOW, IF, IF WE'RE JUST BRINGING THE, UH, MAIN RIGHT IN FRONT OF THEIR PROPERTY, THERE IS NO MAIN EXTENSION THAT THEY'RE REQUIRED TO DO.
AND THEN WE HAVE OTHER INCENTIVES THROUGH THE WATER CONSERVATION, UH, DEPARTMENT TO HELP DEFER THE COST OF DUAL PLUMBING AND JUST SORT OF MAKE IT KIND OF SWEETEN THE POT FOR THEM TO BE, UH, RECLAIMED READY FOR WHEN OUR MAIN GETS THERE.
BUT IN TERMS OF, YOU KNOW, IF A, A PROJECT CAME IN THAT WAS 250 FEET FROM A PLANNED, UM, RECLAIMED WATER MAIN, UM, OH, AT THAT POINT WE WOULD, YOU KNOW, THEY WOULD HAVE TO DO THE ONSITE WATER REUSE SYSTEM.
UM, AND SO THEY WOULD BE DUAL PLUMBING ANYWAY.
AND IF AT ANY POINT WANTED TO CONVERT, UM, UM, OR CHOOSE TO, UM, TO A MAIN EXTENSION INSTEAD, UH, WE, WE HAVE HAD PROJECTS DO THAT WHERE THEY KNOW THE RECLAIMED WATER SYSTEM IS COMING AND SO THEY PUT IN A, A PORTION OF MAINE THAT WILL CONNECT TO THAT FUTURE CIP.
I'M LOOKING FORWARD TO SEE THE SYSTEM GROW.
'CAUSE I'M FAMILIAR WITH WHERE THE MAPS ARE AT AND I COULD SEE HOW THIS COULD TURN INTO AN A, AN EXPANSION NOW THAT THIS OPPORTUNITY'S AVAILABLE.
SO I'M JUST TRYING TO GET SOME CLARITY, SO I APPRECIATE IT.
THANKS AGAIN FOR THE PRESENTATION AND FOR ALL THE QUESTIONS.
[5. Recommend approval of a resolution authorizing Austin Water to continue the GoPurple pilot incentive program and issue incentives on a pilot basis during Fiscal Year 2025-2026 for alternative onsite water reuse systems and reclaimed water connections for new commercial, mixed use and multi-family developments in the total aggregate amount of $4,000,000, not to exceed $1,500,000 per project for affordable housing projects exempt from the GoPurple reuse requirements and not to exceed $500,000 per project for all other projects. Funding: $4,000,000 is available in the Fiscal Year 2025-2026 Operating Budget of Austin Water. ]
MOTIONING FOR ITEM NUMBER FIVE.I CAN GET A MOTION TO APPROVE.
SO MOTION TO APPROVE COMMISSIONER PENER ENGI, AND SECOND COMMISSIONER MARLO.
[7. Briefing on 89th Texas Legislative Session Outcomes Related to Austin Water – Chief Administrative Officer Heather Cooke]
POP BACK TO ITEM NUMBER SEVEN.GOOD AFTERNOON, COMMISSIONERS.
I'M HEATHER COOK, CHIEF ADMINISTRATIVE OFFICER FOR FROST WATER, AND I BELIEVE WE HAVE SOME SLIDES COMING UP.
SO I'LL BE GIVING THIS PRESENTATION ON THE OUTCOMES FROM THE TEXAS LEGISLATIVE SESSION THAT HAS NOW CONCLUDED AND IS IT CLICKING FORWARD? SORRY, IT HELPS TO TURN ON THE REMOTE
IF IT'S NOT MOVING, VICKY, I'LL HAVE YOU ADVANCE THE SLIDE.
SO THE TEXAS LEGISLATURE HOLDS WHAT'S CALLED A REGULAR SESSION EVERY 140 DAYS PER THE TEXAS STATE CONSTITUTION.
SO THE LAST REGULAR SESSION WAS HELD FROM JANUARY 14TH, 2025 THROUGH JUNE 2ND, 2025.
AND THEN THE GOVERNOR HAS THE PREROGATIVE TO CALL SPECIAL SESSIONS AT HIS WILL AT ANY TIME OUTSIDE OF THOSE REGULAR SESSION DATES.
AND HE DID THAT REGULAR, UH, SPECIAL SESSIONS CAN ONLY LAST UP TO 30 DAYS PER STATE CONSTITUTION.
HE CALLED ONE, UH, IN JULY, THAT LASTED TILL AUGUST 15.
UH, AND THEN, AND IT WAS TERMINATED BECAUSE THEY WERE HAVING A HARD TIME GETTING A QUORUM.
[00:35:01]
SURE YOU HEARD ABOUT THAT IN THE NEWS.AND THEN THERE WAS A SECOND SPECIAL SESSION THAT THE GOVERNOR CALLED RIGHT AWAY, AUGUST 15, THAT, UM, WAS CONCLUDED BY THE GOVERNOR ON SEPTEMBER FOUR WHEN THEY CONCLUDED THE BUSINESS, UH, AT HAND FOR THAT.
SO DURING THE REGULAR SESSION WHERE THE PREDOMINANT ACTIVITIES OCCURRED, UH, MY TEAM TRACKED OVER 400 BILLS OUT OF A RECORD, 8,700 BILLS THAT WERE FILED.
AND OF COURSE, WE WORK CLOSELY WITH THE CITY'S GOVERNMENT RELATIONS OFFICE AT CITY HALL.
AND, UH, SO IN THIS PRESENTATION, I'M GONNA GO OVER 13 OF THOSE BILLS, UM, THAT HAD SOME DEGREE OF IMPACT, WILL HAVE SOME DEGREE OF IMPACT ON AUSTIN WATER.
SO THERE WAS, WHOOPS, DID WE GO TOO FAR BACK ONE, PLEASE? OKAY.
SO THE MAIN MARQUEE BILL, I WOULD SAY FROM THIS SESSION, THERE WERE A PAIR OF BILLS, BUT HOUSE JOINT RESOLUTION SEVEN, UH, WAS PASSED.
NOW THIS WILL REQUIRE VOTER APPROVAL IN NOVEMBER TO GO INTO EFFECT LEGALLY, BUT, UH, WHAT HAPPENED HERE IS THIS IS CALLING FOR HISTORIC DEDICATED SOURCE OF FUNDING FOR WATER INFRASTRUCTURE.
THIS HAS BEEN MANY YEARS IN THE MAKING.
AND THE FINAL DETAILS, UH, AGAIN, SUBJECT TO VOTER APPROVAL IN NOVEMBER, WE'LL CALL FOR, UH, UH, $1 BILLION, THAT'S BILLION WITH A B TO BE ALLOCATED ANNUALLY FROM STATE SALES TAX.
ONCE A CERTAIN THRESHOLD OF SALES TAX IS REACHED, THAT ADDITIONAL 1 BILLION WOULD GO AUTOMATICALLY TO THE WATER DEVELOPMENT BOARD FOR VARIOUS INFRASTRUCTURE PROJECTS.
AND THIS WILL BE RECURRING OVER A 20 YEAR PERIOD FROM 2027 THROUGH 2047.
AND THEN, UM, THERE IS A PROVISION THAT WAS ADDED IN THAT THE GOVERNOR COULD SUSPEND THIS FUNDING DURING ANY GIVEN YEAR AND, AND PEEL OUT PART OF IT FOR, UM, DISASTER RELIEF SHOULD, SHOULD A DISASTER OCCUR.
UH, AND THEN IT COULD BE RESTORED WHEN PRACTICAL, I BELIEVE IS THE LANGUAGE IN, IN THAT LAW THAT PASSED BY THE LEGISLATURE.
SO WE WILL SEE WHAT HAPPENS AT THE GENERAL ELECTION IN NOVEMBER, WHETHER THIS IS PASSED BECAUSE THIS IS A CONSTITUTIONAL AMENDMENT AND THAT'S WHY VOTER APPROVAL ACROSS THE STATE WILL BE REQUIRED TO ENACT THIS.
THIS LEGISLATION DOES NOT INCREASE THE SALES TAX RATE.
UM, AND, AND IT ALSO STIPULATES THAT HALF OF THIS BILLION DOLLARS PER YEAR WOULD HAVE TO GO TO THE NEW WATER SUPPLY FUND AND THE STATE WATER IMPLEMENTATION FUND, WHICH ARE TWO, TWO BIG FUNDS THAT THE WATER DEVELOPMENT BOARD MANAGES.
SO THERE ARE SOME, SOME RESTRICTIONS ON THAT WITH THE WATER DEVELOPMENT BOARD ADMINISTERING IT.
SO THEN A RELATED, CLOSELY RELATED BILL WAS SENATE BILL SEVEN THAT ALSO PASSED, UM, WITH THE SAME LEADERSHIP CHAIRMAN PERRY AND, AND CHAIRMAN HARRIS, WHO LED THE SENATE AND HOUSE, UH, WATER RELATED COMMITTEES AND SENATE BILL SEVEN, UM, DOES A NUMBER OF THINGS.
IT TALKS ABOUT TEXAS WATER DEVELOPMENT BOARD ROLES, AND PARTICULARLY IT, UM, DIRECTS THE TEXAS WATER DEVELOPMENT BOARD TO START LOOKING AT FACILITATING WATER CONVEYANCE PROJECTS BEING PLANNED ACROSS THE STATE POTENTIALLY IN THE FUTURE.
SO THIS IS A VERY LONG-TERM KIND OF VISION THAT'S STARTING TO MANIFEST ITSELF IN, IN SOME STATE LAW, EARLY DAYS ON ALL OF THAT YET.
AND THEN IT CALLS, UM, INTERESTINGLY FOR THE WATER DEVELOPMENT BOARD TO STUDY ADDING WASTEWATER PROJECTS TO THE STATE WATER PLANNING PROCESS.
SO THAT WOULD BE A NEW ELEMENT.
WE'VE AT AUSTIN WATER HAVE BEEN PARTICIPATING IN THAT STATEWIDE WATER PLANNING PROCESS SINCE ITS INCEPTION IN 1998 AS A PROCESS THAT UPDATES THE STATE WATER PLANT EVERY FIVE YEARS THROUGH OUR REGIONAL PLANNING PROCESS.
SO WE WILL SEE WHAT WATER DEVELOPMENT BOARD DOES TO START DIRECTING THOSE REGIONAL PLANNING GROUPS TO LOOK AT, UM, WASTEWATER PLANNING.
BUT THIS IS JUST A STUDY, SO WE WON'T BE DIRECTED TO ACTUALLY IDENTIFY PROJECTS JUST YET, UM, AS I UNDERSTAND IT, SOME MORE TO COME ON ALL OF THAT.
AND THEN, UM, THE SENATE BILL SEVEN ALSO ADDS, UM, SOME AUTHORIZATION FOR THIS NEW WATER SUPPLY FUND TO FUND, UM, WATER WASTEWATER REUSE PROJECTS, AS WELL AS OUT-OF-STATE WATER PURCHASES, UM, WITH SOME OF THIS BILLION DOLLARS AND, AND OTHER FUNDING WATER DEVELOPMENT BOARD ALREADY HAS IN PLACE.
THEN THERE'S ANOTHER BILL, SENATE BILL 1261 THAT, UM, ACTUALLY EXTENDS THE LOAN TERMS FOR SWIFT LOANS.
UM, CURRENTLY THOSE SWIFT LOANS ARE 20 TO 30 YEAR TERMS, AND WE HAVE BEEN, UM, VERY APPRECIATIVE OF THE STATE LENDING US, UM, FUNDING THROUGH THE SWIFT LOAN PROCESS.
AND, UM, THIS THOUGH WILL ONLY ALLOW FOR 40 YEAR TERMS ON LOANS FOR PROJECTS OVER $750 MILLION.
SO THEY WOULD BE PRETTY SIGNIFICANTLY LARGE PROJECTS.
BUT IT IS NICE TO HAVE THAT OPTION TO POTENTIALLY EXTEND OUT OUR LOAN TERMS, SHOULD WE BENEFIT FROM A FUTURE LOAN OF THAT MAGNITUDE, WHICH OF COURSE, YOU WOULD ALL BE REVIEWING WELL IN ADVANCE SHOULD THAT COME TO PASS
[00:40:02]
NEXT SLIDE.THEN WE HAVE, UM, A COUPLE OTHER FINANCING BILLS BRIEFLY.
SO FINANCING FOR WATER INFRASTRUCTURE WAS OBVIOUSLY A BIG THEME OF THIS SESSION.
SENATE BILL 1967 EXPANDS THE FLOOD INFRASTRUCTURE FUND PROGRAM, WHICH IS A MUCH NEWER FUND.
THE STATE ALSO HAS A STATEWIDE FLOOD PLANNING PRO PROCESS THAT WAS MIRRORED ON THE STATE WATER SUPPLY PLANNING PROCESS.
AND, AND WE PARTICIPATE IN THAT AS WELL.
AND, UM, WE'RE HOPING TO RECEIVE SOME OF THIS FLOOD INFRASTRUCTURE FUNDING.
WE DO HAVE A PENDING APPLICATION WITH THE STATE FOR THAT.
THIS BILL WILL EXPAND THAT, UM, FLOOD FUND TO, UM, ALLOW FOR, UM, CERTAIN PROJECTS THAT ARE CAPTURING, UM, STORM WATER AND, AND EVEN REUSING, UM, WASTEWATER FLOWS, UM, THAT COULD POTENTIALLY BENEFIT FROM THAT FLOOD FUND.
AND THEN HOUSE BILL 500, UM, JUST INFUSES MORE FUNDING.
IT'S ONE TIME FUNDING TO THE WATER DEVELOPMENT BOARD, UM, FOR, UM, INCREASING THE SUPPORT FOR THE MATCHING FUNDS THEY HAVE TO HAVE FOR THE FEDERAL STATE REVOLVING FUND PROGRAMS, UM, THAT THEY FUND, UH, AS WELL AS, UM, A A BILLION DOLLARS, UM, FOR VERY SPECIFIC, UM, WATER INFRASTRUCTURE AND SUPPLY PROJECTS.
IMPACT FEES WERE ANOTHER THEME WE SAW THROUGH A NUMBER OF BILLS.
AND THESE ARE THE ONES THAT PASSED SENATE BILL EIGHT 40 AND ANOTHER SENATE BILL 2 4 7 7.
THEY'RE ACTUALLY VERY SIMILAR IN LANGUAGE, SO THEY'RE GONNA HAVE TO GET RECONCILED, UM, AT THE CAPITOL TO, TO MAKE SURE WHAT ENDS UP IN FINAL STATE LAW IS, IS CONSISTENT.
BUT IN ESSENCE, THESE TWO PAIRS OF THIS PAIR OF BILLS, UH, SEEKS TO HELP PROMOTE AFFORDABLE HOUSING BY, UM, PRESCRIBING AND HOPEFULLY, UM, INCENTIVIZING SOME REUSE, UH, RENOVATION OF COMMERCIAL STRUCTURES, UH, INTO RESIDENTIAL OR MULTI-PURPOSE MULTI-USE STRUCTURES.
SO IT'S TRYING TO REMOVE SOME BARRIERS FOR THAT.
AND THIS IS A STATEWIDE BILL, BUT IT ONLY APPLIES TO CITIES OVER 150,000 THAT ARE IN CERTAIN COUNTIES.
UM, BUT IT DOES HAVE SOME RESTRICTIONS ON OUR ABILITY TO CHARGE, UH, OUR WATER WASTEWATER IMPACT FEES FOR THESE SPECIFIC TYPES OF PROJECTS.
WE ARE STILL WORKING THROUGH THE DETAILS WITH OUR LAW DEPARTMENT ON THAT.
UM, AND THEN SENATE BILL, UM, 1883 JUST SPEAKS MORE BROADLY TO HOW OFTEN GOVERNING BODIES CAN INCREASE IMPACT FEES, UM, WHICH NOW CAN ONLY BE DONE EVERY THREE YEARS.
TYPICALLY IN AUSTIN, WE DO IT ABOUT EVERY FIVE YEARS, SO THAT SHOULDN'T IMPACT OUR TRADITIONAL PROCESS.
IT ALSO THOUGH, WILL REQUIRE OUR CITY COUNCIL TO APPROVE ANY INCREASES IN IMPACT FEES WITH A TWO THIRDS VOTE OF OUR COUNCIL.
UM, AND THAT IS A STATEWIDE BILL.
IT APPLIES TO ANY ANYBODY THAT'S ADOPTING THESE IMPACT FEES, AND IT WILL REQUIRE INDEPENDENT FINANCIAL AUDITS, UM, BEFORE, UH, IMPACT FEE INCREASES.
SO WE'RE, WE WILL MAKE SURE WE COMPLY WITH ALL OF THAT.
AND THEN SENATE BILL 14 ACTUALLY PASSED DURING THAT SECOND ABBREVIATED SPECIAL SESSION.
IT'S GOING TO REQUIRE US TO, UM, ADOPT IMPACT FEE CREDITS, UH, TO INCENTIVIZE CONSERVATION OR REUSE.
AND WE ARE DEFINITELY TALKING CLOSELY WITH OUR LAW DEPARTMENT, UH, AS TO HOW TO IMPLEMENT THAT.
THIS BILL JUST WENT INTO, OR JUST PASSED AUGUST 26TH IN THAT SECOND SPECIAL SESSION AND IS EFFECTIVE JANUARY ONE.
SO, UM, WE WILL, WE WILL BE WORKING WITH OUR LAW DEPARTMENT.
WE ALREADY ARE ON, ON FIGURING OUT WAYS TO ADOPT THOSE IMPACT FEE CREDITS.
THE GOOD THING IS THE, UH, BILL DOES GIVE, AND IT APPLIES TO ALL POLITICAL SUBDIVISIONS THAT IMPOSE IMPACT FEES.
IT DOES GIVE THOSE POLITICAL SUBDIVISIONS THE LATITUDE DETERMINE HOW WE WANNA STRUCTURE THE CREDITS AND HOW WE WILL COLLECT THEM AND, UM, ENFORCE THOSE.
SO WE DO HAVE A, A LOT OF LATITUDE THERE.
WATER LOSS, UM, HAS, IS A VERY IMPORTANT TOPIC, VERY IMPORTANT FOR AUSTIN WATER AND OUR PORTFOLIO FOR, UM, WE KNOW THAT'S, THAT'S A KEY WAY TO STRETCH OUR WATER SUPPLIES.
AND, UM, SO THIS BILL ACTUALLY WILL REQUIRE A CERTAIN NUMBER OF CITIES.
IT'S ACTUALLY ONLY SIX CITIES, UH, IN TEXAS RIGHT NOW THAT HAVE OVER 150, 150,000 CONNECTIONS.
WE ARE ALL REQUIRED TO DO, DO AN ANNUAL VALIDATION OF THE WATER LOSS THAT WE ARE ALREADY WATER LOSS AUDIT THAT WE'RE ALREADY SUBMITTING TO THE WATER DEVELOPMENT BOARD ANNUALLY.
UM, IT'S WITHIN 180 DAYS OF WHEN WE SUBMIT, UM, OUR AUDIT THAT WE HAVE TO DO THIS VALIDATION.
THEY PRESCRIBE WHO CAN DO THE VALIDATION.
IT CAN'T BE THE SAME STAFF THAT THAT DO THE ACTUAL AUDIT ITSELF.
IT CAN'T BE THE WATER DEVELOPMENT BOARD.
THERE'S CERTAIN CREDENTIALS TO DO THE VALIDATION.
[00:45:01]
WITHIN A YEAR AFTER SUBMITTING THAT ANNUAL AUDIT, UM, WE HAVE TO DO A WATER LOSS MITIGATION PLAN, UM, THAT HAS CERTAIN REQUIREMENTS IN IT, 1, 3, 5 YEAR WATER LOSS GOALS, UM, AND SOME OTHER PRESCRIPTIONS IN THAT PLAN AND ALMOST DONE HERE, CONSERVATION AND DROUGHT.CONTINUING WITH THAT THEME, THERE'S ANOTHER BILL HOUSE BILL 5 1 7 THAT WILL, UM, ACTUALLY LIMIT THE ABILITY OF PROPERTY OWNER ASSOCIATIONS TO IMPOSE FINES, UH, ON THEIR PROPERTIES IN THEIR POA, UH, FOR TURF THAT MAY TURN BROWN, OR PLANTS THAT MAY TURN BROWN IF THAT AREA IS SUBJECT TO TEMPORARY WATERING RESTRICTIONS.
SO IT LOOKS LIKE THAT MAY NOT BE OUR YEAR-ROUND WATERING RESTRICTIONS, WHICH ALREADY LIMITS WATERING TO ONE DAY A WEEK.
BUT ONCE WE GET UP INTO THE DIFFERENT DROUGHT STAGES, UH, WE ARE WORKING WITH OUR PIO TEAM AND OUR WATER CONSERVATION TEAM, OUR WORKING ON WAYS TO OUTREACH TO THE, UH, IMPACTED PROPERTY OWNER ASSOCIATION SO THEY'RE AWARE THAT THEY CANNOT ISSUE THESE FINES UNDER THIS NEW STATE LAW.
UM, AND THEN SENATE BILL 2 6 6 2 SPEAKS TO THE DROUGHT CONTINGENCY PLANNING PROCESS THAT'S BEEN IN PLACE.
AND THERE'S A COPY ON THIS SLIDE OF THE LAST DROUGHT CONTINUED PLAN THAT WE SUBMITTED.
WE ARE REQUIRED TO SUBMIT THAT PLAN EVERY FIVE YEARS.
WE SUBMITTED OUR LAST PLAN IN 2024 IN, UM, ALIGNMENT WITH OUR WATER FORWARD UPDATE THAT WE DID.
AND, UM, SO THIS, THIS DOES NOT CHANGE ANY TERMS IN OUR CURRENT PLAN, BUT IT DOES BRING THE, RIGHT NOW THAT PROCESS IS, IS GOVERNED BASICALLY BY THE WATER DEVELOPMENT BOARD IN TCQ AND THEN IT ADDS IN THE TEXAS PUBLIC UTILITY COMMISSION TO THAT PROCESS OF DEVELOPING FUTURE MODEL PLANS, UM, FOR UTILITIES TO FOLLOW AND SHOULD THERE BE FUTURE RULEMAKING AROUND DROUGHT CONTINGENCY PLANNING.
THE TEXAS PUBLIC UTILITY COMMISSION WILL ALSO BE INVOLVED IN THAT PROCESS AND IT DIRECTS THOSE THREE ENTITIES TO UPDATE THESE MODELS, UH, EVERY FIVE YEARS.
THIS IS THE MODELS THAT WE, WE CAN LOOK TO FOR BEST PRACTICES.
UM, WE HAVE A LOT OF DEEP E EXPERTISE IN THESE PLANS WITHIN OUR UTILITIES.
SO THEN FINALLY, I BELIEVE THIS IS MY LAST SLIDE OF BILLS.
SO, UM, SENATE BILL 4 82 ACTUALLY INCREASES PENALTIES FOR ANY UTILITY WORKERS THAT MAY BE HARASSED DURING EMERGENCIES.
AND THIS APPLIES BEYOND JUST THE WATER UTILITY INDUSTRY.
IT'S ALSO FOR ELECTRIC AND, UM, GAS AND TELECOM UTILITY OPERATORS, JUST SO THEY HAVE SOME ADDED PROTECTIONS, UM, SO THAT THEY CAN DO THEIR WORK DURING, DURING EMERGENCIES, WHICH IS SO CRITICAL.
AND FINALLY, HOUSE BILL 1237 ACTUALLY ALLOWS OUR LICENSED WATER AND WASTEWATER OPERATORS WHO ARE ALL LICENSED BY TCQ TO OPERATE OUR PLANTS.
UH, IT GIVES THEM MORE OF A GRACE PERIOD TO RENEW THEIR LICENSES RIGHT NOW.
UM, THEY ONLY HAD 30 DAYS AFTER A LICENSE EXPIRED TO GET IT RENEWED, AND THIS NOW GIVES 'EM UP TO 180 DAYS TO RENEW THOSE LICENSES WITHOUT HAVING TO START THE PROCESS ALL OVER AND TAKE A NEW EXAM AND REAPPLY FROM SCRATCH.
AND IT ALSO CLARIFIES THAT THOSE OPERATORS ARE ALLOWED TO CONTINUE WORKING, UM, IN THEIR JOBS WHILE THE LICENSE IS IN PROCESS OF BEING RENEWED ONCE THEY START THAT RENEWAL PROCESS.
SO JUST BRIEFLY, THE LEGISLATIVE CYCLE, WHAT'LL HAPPEN NEXT IS, UH, THE LIEUTENANT GOVERNOR DAN PATRICK AND SPEAKER, UM, BURROUGHS FOR THE HOUSE WILL BE INTER ISSUING WHAT ARE CALLED INTERIM CHARGES, UM, FOR THE COMMITTEES IN THE HOUSE AND SENATE, UH, THE SENATE AND HOUSE RESPECTIVELY.
UH, AND THAT'S JUST DIRECTING THOSE COMMITTEES TO STUDY CERTAIN TOPICS AND THEN, UM, HOLD HEARINGS AND PRODUCE REPORTS TO PREPARE FOR THE NEXT FULL LEGISLATIVE SESSION.
THAT WILL START IN JANUARY OF 2027 WITH BILL PRE-FILING IN NOVEMBER OF 2026.
AND KEY COMMITTEES WE TYPICALLY WATCH ARE THAT HOUSE NATURAL RESOURCES COMMITTEE.
MOST, MOST WATER BILLS TEND TO GO THROUGH THAT COMMITTEE UNDER THE CURRENT STRUCTURE.
AND THERE'S A SENATE WATER AG RULE AFFAIRS COMMITTEE THAT OBVIOUSLY HANDLES A LOT OF WATER BILLS AND THEN HOUSE ENVIRONMENTAL REGULATION, OFTEN HANDLES WASTEWATER, SOLID WASTE, BIO SOLIDS TYPE ISSUES.
UM, OF COURSE THESE COMMITTEES CAN ALL GET RESTRUCTURED BY THE HOUSE AND SENATE LEADERSHIP, BUT FOR NOW, THOSE ARE THE COMMITTEES IN PLACE GOING INTO THE NEXT LEGISLATIVE SESSION.
NEXT ONE JUST IS THE QUESTION SLIDE.
SO ARE THERE ANY QUESTIONS? THANK YOU.
OF WATER RELATED ITEMS TO, TO THAT WELL INTO THIS SESSION.
AND I KNOW THAT, UM, YOU KNOW, $1 BILLION ALLOTMENT WAS HUGE, SO HOPEFULLY THAT
[00:50:01]
GOES THROUGH DURING THE ELECTION.UM, WE CAN ACTUALLY WORK WITH IT, BUT DOES ANYBODY HAVE ANY QUESTIONS FOR HEATHER? I HAVE A QUESTION.
UM, SO I, I THINK GREAT UPDATES.
UM, YOU COVERED THE SPECTRUM OF CHANGES AND EXACTLY LIKE, UM, OUR VICE CHAIR WAS SAYING.
I THINK THERE'S A LOT GOING ON.
DO YOU SEE ANYTHING NEGATIVELY IMPACT, LIKE I, I THINK I DIDN'T SEE, LIKE I I I SAW WHAT IS HAPPENING, BUT ARE THERE CONCERNS FOR THE UTILITY WITH RESPECT TO POSITIVE IMPACTS OR NEGATIVE IMPACTS WITH ANY OF THESE BILLS? JUST A SUMMARY IS GOOD.
I DON'T NEED A SUPER DETAILED EXPLANATION.
SO IN TERMS OF LEGISLATION THAT PASSED, UM MM-HMM
UM, I MENTIONED THOSE IMPACT FEE BILLS, SO THERE IS SOME, SOME RESTRICTION THERE MM-HMM
THAT WE'RE, WE NEED TO DIVE INTO.
AGAIN, IT'S VERY NARROW, UM, ON THE ONES THAT SAY WE ARE, WE ARE GONNA BE LIMITED IN OUR ABILITY TO COLLECT SOME IMPACT FEES FOR THOSE CONVERSIONS OF, OF COMMERCIAL PROPERTIES OVER TO, UH, RESIDENTIAL PROPERTIES.
SO, UM, OBVIOUSLY LIMITING, TAKING AWAY SOME OF THAT LOCAL CONTROL OVER OVER OUR REVENUE AND, AND THAT OBVIOUSLY WE'D PREFER NOT TO, TO HAVE, HAVE THAT KIND OF RESTRICTION, BUT WE WILL CERTAINLY WORK WITH IT AND OBVIOUSLY WE SUPPORT AFFORDABLE HOUSING AND THE GOAL BEHIND IT, RIGHT? SO IT'S ALWAYS A BALANCE THERE.
UM, AND THEN THAT OTHER IMPACT FEE BILL, SENATE BILL 14 ON THIS SLIDE THAT DOES TALK ABOUT REQUIRING THESE IMPACT FEE CREDITS.
AGAIN, WE ABSOLUTELY SUPPORT THE CONCEPT AND, AND WANNA INCENTIVIZE CONSERVATION REUSE.
YOU JUST HEARD THE GO PURPLE PRESENTATION WHERE WE'RE EXACTLY TRYING TO DO THAT, AND WE'RE LOOKING AT ACTUALLY THAT GO PURPLE PROGRAM TO SEE TO WHAT DEGREE WE'RE ALREADY DOING SOME FORM OF, OF CONSERVATION OR CREDIT, UH, REUSE CREDITS THAT THAT COULD FIT UNDER THE RUBRIC OF, OF THIS LAW.
SO, UM, I MEAN, I REALLY FEEL OBVIOUSLY THE NEW FUNDING WAS A HUGE POSITIVE, AND SO AMONG THE BILLS THAT PASSED, I'M NOT, I DON'T HAVE A SENSE OF, OF ANY REAL NEGATIVE IMPACTS DIRECTLY ON AUSTIN WATER.
UM, THAT, AND SO LIKE PURELY ON THIS, AND THANK YOU FOR ADDING THAT CLARITY, I APPRECIATE THAT.
SO PURELY LIKE ON THIS, ON THIS ITSELF THAT YOU TALKED ABOUT THE IMPACT FEE ONES, UM, I I GUESS, I GUESS THE UTILITY HASN'T GONE THROUGH THE EXERCISE TO DETERMINE WHAT WILL BE THE LOSS IN REVENUES NOW THAT THAT CONTROL IS SORT OF TAKEN AWAY WITH RESPECT TO THE IMPACT FEE, THE AMOUNT OF IMPACT FEE.
SO WE, WE'VE NOT DONE THAT LEVEL OF CALCULATIONS TO REALLY DETERMINE, OH YEAH, THIS IS NOW GONNA REDUCE OUR REVENUE BY X PERCENTAGE OR NOT, YOU KNOW, THAT WE'VE NOT GOTTEN INTO THAT DEPTH.
AND THAT'S WHAT I MEANT WITH YES.
WE DON'T HAVE THAT SENSE YET OF JUST HOW FAR REACHING THIS IS GONNA BE.
AND AGAIN, THIS IS PERSPECTIVE, RIGHT? WITH NEW DEVELOPMENT.
SO IT'S, IT'S GONNA BE A LITTLE HARD TO PREDICT RIGHT NOW.
YEAH, I AGREE THAT, THAT THERE'S, UM, A LOT LEFT TO LEARN ABOUT THE IMPACTS.
UM, BUT I WOULD REITERATE WHAT HEATHER SAID, THAT THE, YOU KNOW, THESE BILLS ARE INTENDED TO INCENTIVIZE CONSERVATION REUSE, WHICH WE ARE ALSO TRYING TO INCENTIVIZE.
AND SO THEY'RE PRETTY WELL ALIGNED WITH, YOU KNOW, THE, THE WORK THAT WE ALREADY HAVE IN FLIGHT.
UM, AND SO I THINK WE FEEL PRETTY GOOD ABOUT, UH, LINING UP WITH THESE REQUIREMENTS.
SO I THINK WHAT I'M, AND MAYBE I'M PUTTING WORDS IN BOTH OF YOUR MOUTH, BUT I THINK WHAT I'M HEARING IS SINCE IT'S GENERALLY IN ALIGNMENT WITH WHERE THE UTILITY WANTS TO GO, EVEN IF THERE ARE IMPACTS, THERE ARE GOING TO BE MINIMAL IN NATURE WHERE, OR THINGS THAT WE HAVE ALREADY ACCOUNTED FOR OR PLANNING FOR.
SO THAT'S WHY WE ARE NOT NECESSARILY SUPER CONCERNED JUST YET.
IS THAT TOO MUCH OF A STRETCH FROM WHERE YOU GUYS TOOK IT? UH, I THINK THAT'S FAIR.
UM, I DID HAVE ONE QUESTION ON THE WATER LOSS BILL.
THE HB 29, WILL THAT VALIDATION, WILL YOU GUYS BE ABLE TO DO IT IN HOUSE JUST WITH DIFFERENT STAFF OR DOES IT HAVE TO BE A THIRD PARTY? SO IT CAN'T BE THE INDIVIDUALS THAT ACTUALLY PERFORM THE INITIAL AUDIT? SO WE WOULD NEED TO HAVE OTHERS TRAINED AND CERTIFIED TO DO THE, AND IT REQUIRES PEOPLE TO HAVE CERTAIN CERTIFICATIONS, WHICH I DON'T BELIEVE WE HAVE YET.
I THINK WE'RE WORKING ON TRYING TO GET SOME OF THAT CERTIFICATION DONE.
SO RIGHT NOW I'D SAY NO, IT COULDN'T BE DONE IN HOUSE TODAY.
UM, AND, AND I THINK THIS IS YOU, AS YOU ALL KNOW, YOU'VE HEARD A LOT ABOUT OUR WATER LOSS PROGRAM AND OUR EFFORTS AND THE, UM, THE THIRD PARTY, UM, EVALUATION THAT WE DID OF OUR WATER LOSS PROGRAM AND ALL OF THE RECOMMENDATIONS THAT WERE IN THE PROCESS OF IMPLEMENTING.
UM, AND YOU KNOW, THROUGH THAT, UM, WE DO HAVE STAFF THAT ARE, UM, YOU KNOW, UM, CERTIFIED IN THE AUDIT PROCESS.
[00:55:01]
I THINK THERE'S REALLY A BENEFIT TO US TO TAKE THIS OPPORTUNITY TO GET A THIRD PARTY TO DO THE VALIDATION, UM, BECAUSE IT'S REALLY IN KEEPING WITH THE KIND OF, UM, WORK THAT WE'RE TRYING TO DO ON OUR WATER LOSS PROGRAM TO REALLY, UH, YOU KNOW, MOVE IT FORWARD TO THE NEXT LEVEL.SO, UM, YOU KNOW, I THINK THE TEAM FEELS FINE ABOUT THAT.
UH, AND, YOU KNOW, LOOKS FORWARD TO CONTINUING TO HAVE THAT SHARING OF, UH, TECHNICAL EXPERTISE TO CONTINUE TO BUILD OUR CAPABILITIES IN-HOUSE WHILE, YOU KNOW, BRINGING IN THOSE IDEAS AND, AND VALIDATION FROM OUTSIDE.
ANY OTHER QUESTIONS? COMMISSIONER CROT? YOU'RE ON MUTE.
WE UNFORTUNATELY CANNOT HEAR YOU.
HOW ABOUT NOW? NOW YOU ARE COMING THROUGH LOUD AND CLEAR
UM, FIRST OFF, HEATHER, THANK YOU FOR, UM, THE COMPREHENSIVE UPDATE ON, UM, THE WATER BILLS, UM, AND WATER RELATED BILLS THAT PASS THROUGH SESSION.
UM, I HAVE, UM, TWO QUESTIONS.
THE FIRST ONE IS ON THE NATURE OF HOW THE NEW PERMANENT FUNDING SOURCE FOR WATER INFRASTRUCTURE FINANCE, UM, THE BILLION DOLLARS PER YEAR THROUGH 2047 MM-HMM
AND SO, UM, THE CAVEAT THAT, UM, THE FUNDING CAN BE SUSPENDED DURING A DISASTER AND RESTORED WHEN PRACTICABLE.
CAN YOU HELP ME UNDERSTAND, UM, SOME OF THE TRADE-OFFS WITH HOW THAT'S WRITTEN INTO, UM, THE LAW IS ARE THERE, UM, CERTAIN PARAMETERS AROUND WHAT KINDS OF DISASTERS, UM, THIS BE APPLIED TOWARD? UM, IS THERE A REQUIREMENT THAT IT BE RESTORED AT SOME FUTURE POINT? UM, I, I, I THINK THAT THE HEART OF MY QUESTION IS CAN THIS PERMANENT FUNDING ACTUALLY BE REPURPOSED FOR OTHER USES OTHER THAN WATER INFRASTRUCTURE FUNDING, UM, IN THE LONG TERM.
SO MY UNDERSTANDING, I'M NOT AN ATTORNEY
BUT AS I RECALL, THE LANGUAGE IS VERY BROAD AND IT DOES NOT SPECIFY CERTAIN TYPES OF DISASTERS.
I MEAN, I THINK THE GOVERNOR HAS TO DECLARE A DISASTER, UH, FIRST BEFORE THEY CAN, AND IT WOULD BE AT THE STATE LEVEL.
I BELIEVE IT'S THE GOVERNOR THAT HAS THE AUTHORITY, AND I APOLOGIZE, I DON'T HAVE THAT EXACT LANGUAGE IN FRONT OF ME.
I CAN FOLLOW UP AND SEND YOU, I CAN SEND YOU THE BILL WHERE THE LANGUAGE APPEARS.
IT'S A VERY LONG BILL, BUT, UM, MY UNDERSTANDING IS, UH, IT'S NOT SPECIFIED THE TYPES OF DISASTERS AND UH, OR THE CONDITIONS UNDER WHICH IT WOULD BE RESTORED.
SO, UM, THAT'S A VERY GOOD QUESTION.
THANK YOU THAT, THAT'S HELPFUL.
UM, AND I'D BE INTERESTED IN READING THE, THE SPECIFIC PART OF THE BILL.
HAPPY TO SHARE THAT AND POINT OUT WHERE IT IS IN THE LANGUAGE IN THE LAW.
UM, QUESTION NUMBER TWO, UM, GETS AROUND, UM, TO SOMETHING I THINK WE TOUCHED ON IN SOME OF THE OTHER COMMISSIONER'S QUESTIONS, UM, AROUND SOME OF, UM, THE NEW REGULATIONS, REQUIREMENTS, COMPLIANCE ISSUES THAT ARE GOING TO BE COMING TO AUSTIN WATER.
YOU MENTIONED ALREADY THE LEGAL TEAM IS ASSESSING, UM, THE IMPACT FEES.
UM, OF COURSE THERE'S THE NEW REQUIREMENT FOR WATER LOSS, UM, AUDIT VALIDATIONS.
UM, DO YOU HAVE A SENSE OF THE ADMINISTRATIVE BURDEN FOR AUSTIN WATER, UM, IN COMPLYING WITH, UM, THESE NEW BILLS THAT HAVE BECOME LAW, EITHER IN TERMS OF PERSONNEL HOURS, UM, ACTUAL HARD COSTS ASSOCIATED WITH COMPLIANCE? UM, AND IF NOT, CAN YOU GIMME A SENSE OF HOW Y'ALL NORMALLY SORT OF CONSIDER, UM, THE ADMINISTRATIVE BURDEN OF, UM, NEW MANDATES FROM THE STATE? WE HAVEN'T QUANTIFIED THAT INFORMATION YET.
WE'RE CERTAINLY LOOKING AT THE STAFFING RESOURCES.
UM, AS DIRECTOR ROLSON ALLUDED TO FOR THE WATER LOSS AUDIT AND TO WHAT DEGREE WE'RE GONNA SEE IF WE CAN DO THAT IN-HOUSE OR HIRE A THIRD PARTY, OBVIOUSLY THAT WOULD HAVE A COST TO DO IT, UH, AS A THIRD PARTY.
UM, SO, SO WE'RE STILL DETERMINING THOSE COSTS, UH, FOR THE WATER LOSS, UM, BILL, AND THEN ON THE IMPACT FEES, AS, AS WE TALKED ABOUT EARLIER, WE DON'T, WE DON'T HAVE A SENSE YET OF THE MAGNITUDE OF, OF THE, UM, IMPLICATIONS THAT'LL HAVE ON OUR ACTUAL IMPACT FEES.
[01:00:01]
QUESTIONS.[8. Update from the Joint Sustainability Committee August 27, 2025 meeting regarding conservation and sustainability initiatives. – Commissioner Amanda Marzullo]
WE HAVE COMMISSIONER MARLO TO GIVE UM, A REPORT ON THE, LET'S SEE, IT'S A REALLY LONG NAME.IT IS THE JOINT SUSTAINABILITY COMMITTEE.
UM, SO IN FULL DISCLOSURE, I DID NOT ATTEND THIS MEETING.
OUR CHAIR DID, CHRIS MAXWELL DID.
UM, SO I'M GOING OFF OF HIS NOTES.
UM, HE BASICALLY SAID THAT THE BIG THING FOR EVERYONE TO KNOW ABOUT, UM, IS THE UPDATE THAT THEY RECEIVED ON THE CITY'S EFFORTS TO CONVERT ITS BUILDINGS TO SOLAR POWER.
AND SINCE THEY'VE SORT OF MOVED IN THIS DIRECTION, THE BIG THING IS THE CHANGING FEDERAL LANDSCAPE FOR, FOR SUBSIDIES FOR SOLAR ENERGY.
SO THE INFLATION REDUCTION ACT CREATED TAX CREDITS FOR SOLAR POWER.
AND WHAT WAS GREAT IS THAT ALTHOUGH THE CITY ISN'T A TAX PAYING ENTITY, IT COULD CLAIM CASH PAYMENTS FOR SOLAR ENERGY.
SO IN, BECAUSE THE CITY DOESN'T PAY TAXES, IT COULD ACTUALLY JUST GET A CASH PAYMENT FROM THE FEDERAL GOVERNMENT FOR UP TO APPROXIMATELY 30% OF THE COST OF A SOLAR PANEL.
THEN WITH THE BIG BEAUTIFUL BILL ACT, I APOLOGIZE FOR EVEN USING THAT TERM.
UM, THEY PHASE THIS OUT, SO NOW THEY'RE UP AGAINST THE CLOCK.
UM, IN ORDER TO QUALIFY FOR THIS CREDIT, THE CONSTRUCTION NEEDS TO START BY JULY OF 2026, UM, AND BE FINISHED WITHIN A FOUR YEAR TIMEFRAME.
OR THE PROJECT CAN BE FINISHED BY THE END OF 2027.
SO THEY'RE REALLY TRYING TO FIGURE OUT THE FINANCING, HOW MUCH THEY CAN GET DONE, IN WHAT TIMEFRAME IN ORDER TO TAKE ADVANTAGE OF THESE CREDITS AND, YOU KNOW, CONVERT ALL OF AS MANY BUILDINGS AS POSSIBLE TO SOLAR POWER.
UM, IN TERMS OF IMPLEMENTATION, THEY HAVE HIRED ROCKY, THE ROCKY MOUNTAIN INSTITUTE TO CONSULT WITH THEM IN PLANNING ON THIS EFFORT.
THIS IS THE CONSULTING AGENCY THAT WORKED WITH SAN ANTONIO RECENTLY IN INSTALLING OR RETROFITTING ITS BUILDINGS.
UM, IN THE CASE OF SAN ANTONIO, THEY SPENT $30 MILLION AND THEY'RE SAVING, THEY EXPECT TO SAVE SOMEWHERE BETWEEN SEVEN AND $11 MILLION OVER THE NEXT 25 YEARS.
SO THE HOPE HERE IS THAT WE WOULD PROBABLY SAVE MUCH MORE BECAUSE THE COST OF SOLAR IS GOING DOWN AND IT'S BECOMING MORE AND MORE EFFICIENT EVERY DAY.
UM, SO NEXT STEPS RIGHT NOW IS REALLY JUST COMING UP WITH A PLAN TO IMPLEMENT THIS.
ARE THERE ANY QUESTIONS? THERE DOESN'T APPEAR TO BE ANY QUESTIONS,
NO, MAYBE WE DON'T WANNA ASK YOU QUESTIONS 'CAUSE WE KNOW YOU WEREN'T THERE.
I HOPE THAT THEY'RE ABLE TO IMPLEMENT IT SOON.
WELL, I HAVE ONE, JUST ONE QUESTION.
WAS THERE A SENSE OF LET, OF THE A HUNDRED PERCENT OF PROJECTS THAT WERE INITIALLY PLANNED, LIKE WHAT PERCENTAGE CAN THEY GET DONE? YEAH.
THAT IS NOT INCLUDED IN THE PRESENTATION.
OR IN THE, MAYBE WE'LL ASK CHRIS.
YEAH, YOU MIGHT WANNA REACH OUT.
IT'S THE OFFICE OF CLIMATE ACTION AND RESILIENCE THAT'S IMPLEMENTING THE PROJECT AND I THINK THAT THEY'RE, YOU KNOW, STILL IN THE VERY EARLY PHASES OF IT, BUT THEY HAVE A MEMO TO THE CITY COUNCIL THAT THEY SENT IN THAT HAS EVEN MORE INFORMATION THAN THEY PRESENTED TO THE COMMITTEE, UM, WITH THE COMMISSION.
AND THEN THAT'S FROM SEPTEMBER 2ND.
I THINK RIGHT NOW WE'VE GONE THROUGH ALL THE ITEMS. THE ONLY THING
[FUTURE AGENDA ITEMS]
LEFT IS A DISCUSSION OF FUTURE AGENDA ITEMS. DO ANY COMMISSIONERS HAVE ANY PROPOSED FUTURE AGENDA ITEMS? SEEING NONE ACTUALLY.UH, THIS IS HEATHER COOK AGAIN, CHIEF ADMINISTRATIVE OFFICER.
JUST A REMINDER, IT'S MORE OF AN ADMINISTRATIVE ITEM, BUT YOUR 2026 MEETING CALENDAR WILL NEED TO BE APPROVED IN A PUBLIC MEETING, EITHER IN OCTOBER OR NOVEMBER.
DEFINITELY BY THE NOVEMBER MEETING.
SO STAFF WILL BE BRINGING BACK SOME OPTIONS FOR DATES.
WE'LL COORDINATE WITH THE CHAIR, VICE CHAIR, AND NOT ONLY ON THE DATES.
HISTORICALLY, THIS BODY HAS BEEN MEETING ON WEDNESDAYS AND THAT KIND OF WORKS WELL WITH ALL THE OTHER BOARDS AND COMMISSIONS THAT ARE MEETING.
UM, SO WE PROBABLY WILL RECOMMEND CONTINUING ON
[01:05:01]
A WEDNESDAY, BUT IF THERE'S A NEED TO REIN, REVISIT THAT, UM, THAT COULD POTENTIALLY BE DONE AS WELL AS THE TIME.SO THIS BODY DID USED TO START, USED TO MEET AT 6:00 PM FOR QUITE A LONG TIME.
WE MOVED IT UP TO 4:00 PM THIS YEAR.
THIS WILL BE FOR YOUR CALENDAR 2026 MEETING SCHEDULE.
SO YOU'RE ALL SET THROUGH THE END OF DECEMBER.
I WAS ALSO GONNA SAY, I THINK I'D ASKED FOR THIS A LONG TIME BACK AND HEATHER HAD PROBABLY GIVEN ME AN UPDATE, NOT A, AGAIN, A SUPER TOP PRIORITY, JUST AS LOTS OF THINGS ARE HAPPENING, YOU KNOW, WITH THE LEGISLATURE NOW THAT THAT'S CLOSED AND JUST, YOU KNOW, WITHIN THE COMMUNITY, MAYBE JUST AN UPDATE ON WHERE AUSTIN WATER'S, YOU KNOW, FUTURE STRATEGIC DIRECTION LOOKS LIKE FOR THE NEXT FOUR OR FIVE YEARS.
SO AGAIN, NOT ANYTHING THAT NEEDS TO GET SCHEDULED FOR NEXT MONTH, BUT JUST AS LONG AS IT'S ON STAFF TRADE STRAIGHT ON.
ACTUALLY THAT'S BEING PLANNED FOR YOUR, YOUR NOVEMBER COMMISSION MEETING.
WE'RE DOING A MAJOR UPDATE OF OUR STRATEGIC PLAN SO THAT I CAN SAY WITH CONFIDENCE WE WILL BE BRIEFING YOU ON AT THE NOVEMBER MEETING.
WE WON'T QUITE BE READY FOR NEXT MONTH, BUT NOPE, THERE'S NO WORRIES.
AND THAT'S OUR OVERALL DEPARTMENTAL STRATEGIC PLAN.
UM, I THINK I CAN CALL THIS MEETING ADJOURNED AT FIVE 10.