[1. CALL SESSION TO ORDER]
[00:00:02]
WE'LL CALL THE WORK SESSION FOR THURSDAY, JANUARY 4TH, 2024 TO ORDER.AND THEY'RE HERE FIRST THREE PEOPLE'S, SORRY, WE'RE NOT TAKING ACTION.
SO, YEAH, BUT, AND I THINK THAT OPEN MEANS CODE ALLOWS YOU TO HAVE A MEETING.
IF YOU TAKE ACTION, IT'S NOT VALID, BUT WE'LL GET STARTED.
WHILE YOU'RE DOING THAT, IF YOU HAVE TO SHUT US DOWN, WE'LL JUST SHUT DOWN.
[3.1. Capital Improvements Projects (Matt Rector)]
THREE ONE, CAPITAL IMPROVEMENTS PROJECT.UM, SO FIRST LET ME APOLOGIZE.
I'VE HAD KIND OF A, YEAH, I THINK WE'RE FINE NOW.
UH, SO FIRST, LEMME APOLOGIZE.
I HAVE TO HAVE A, UH, I'VE HAD A COUGH ALL WEEK, SO I HAVE A COUGH DROP IN MY MOUTH.
USUALLY I WOULDN'T PRESENT WITH A COUGH DROP IN MY MOUTH, BUT SPIT IT ACROSS FOR
IF I DO, I'LL TRY TO MAKE SURE MY MOUTH IS CLOSED.
TRY TO GET IT RIGHT INTO YOUR CUP,
SO YEAH, WE'RE HERE TO TALK ABOUT THE CIP.
UH, JUST AS A RECAP FOR EVERYBODY, WE APPROVED THE CIP BACK IN THE SUMMER AND THEN, UM, SOME FINANCIAL INFORMATION CAME FORWARD.
THE CITY COUNCIL STARTED ASKING QUESTIONS ABOUT WHAT CAN WE DO WITH THE CIP? CAN WE DELAY PROJECTS, CAN, AND SO I TALKED TO THE CITY MANAGER AND IT'S NOT LIKE A BLACK AND WHITE YES OR NO QUESTION, AND IT'S NOT, DEFINITELY NOT A BLACK AND WHITE YES OR NO ANSWER.
AND SO WE DECIDED WE WOULD START THE CONVERSATION IN A WORKSHOP.
THIS WILL NOT BE THE END ALL, BE ALL CONVERSATION.
THIS IS GONNA TAKE MULTIPLE ITERATIONS.
SO THIS FIRST PASS IS VERY LIKE A HIGH LEVEL TO SEE WHAT KIND OF DEPTH YOU GUYS WANNA GET INTO.
UM, AND I'M JUST GOING TO GO THROUGH IT AS QUICK AS I CAN.
'CAUSE THERE'S A BUNCH OF SLIDES IN HERE, BUT I WANNA MAKE SURE I LEAVE TIME FOR COUNCIL DISCUSSION.
AND IDEALLY, AT THE END OF THE DAY, WE WANT, WE WOULD LIKE TO HAVE, UM, A COUPLE OF QUESTIONS ANSWERED BY THE COUNCIL SO THAT WE CAN FACILITATE FUTURE CONVERSATIONS.
SO I'M GONNA PUT THOSE QUESTIONS OUT THERE FOR YOU RIGHT NOW SO YOU CAN BE THINKING ABOUT THIS AS WE GO THROUGH.
SO THE FIRST QUESTION IS, HOW AGGRESSIVE DO WE WANT TO BE IN OUR GROWTH? AND CIP.
SO KEEP THAT IN YOUR MIND AS I'M GOING THROUGH THESE PRE THIS PRESENTATION.
THE OTHER QUESTION IS, WOULD WE EVER CONSIDER ANY TYPE OF RESTRICTION ON GROWTH? AND IF WE DO, AT WHAT POINT WOULD WOULD CITY COUNCIL WANT TO PULL THAT TRIGGER? SO KEEP THOSE QUESTIONS IN YOUR MIND AS I'M GOING THROUGH ALL THIS AND WE START HAVING THIS CONVERSATION.
'CAUSE THAT THOSE, THOSE ANSWERS WILL HELP US FACILITATE FUTURE CONVERSATIONS.
MATT, NUMBER ONE, WHAT DO YOU MEAN BY HOW AGGRESSIVE ON GROWTH AND CIP 'CAUSE IS THAT GROWTH OF CIP PROJECTS OR IS THAT GROWTH IN TERMS OF DEVELOPMENT? UH, HOW AGGRESSIVE DO WE WANT TO BE IN FACILITATING, PUSHING, DRIVING THAT GROWTH, WHICH IS BASICALLY HELPS US DECIDE HOW MANY PROJECTS WE WANNA PACK INTO THE CIP.
OKAY, SO DEVELOPMENT, GROWTH AND CIP PROJECTS, RIGHT? AND THEN NUMBER TWO IS LIKE, DO WE WANNA DO A MORE MORATORIUM ON SOMETHING? IS THAT RIGHT? AND IF, IF THE ANSWER TO THAT IS YES, WE WOULD CONSIDER THAT.
AT WHAT POINT DO WE WANT TO CONSIDER? OKAY.
SO WITH THAT, UH, I'M GONNA JUMP RIGHT IN HERE.
SO THE BLUFF, SORRY, I HAVE SOMEWHAT OF A MILITARY BACKGROUND.
CAN, CAN YOU GUYS HEAR ME? YOU GUYS HEAR ME? YES, SIR.
SO THE BLUFF, UH, FOR THOSE OF YOU WHO DON'T KNOW WHAT A BLUFF IS, IT'S A MILITARY THING, BOTTOM LINE, RIGHT UP FRONT.
SO I'M GONNA GIVE YOU THE ANSWER BEFORE WE GET THROUGH ALL THE PRESENTATION.
CURRENT CIP IS ABOUT A BILLION DOLLARS.
UH, TONIGHT WE'RE FOCUSING MOSTLY ON UTILITIES.
'CAUSE THAT WAS THE PRIMARY QUESTION FROM CITY COUNCIL OF THAT BILLION DOLLARS, IT'S 618 MILLION PLUS.
UM, THE RECOMMENDATIONS THAT YOU'RE GONNA SEE IN THIS PRESENTATION ARE, WE'RE GONNA PUSH OR MOVE CERTAIN PROJECTS, WHETHER THAT BE MOVING THEM TO DEVELOPER COSTS OR MOVING THEM OUT INTO FUTURE CS OR FUTURE YEARS.
UH, WE'RE GONNA REMOVE CERTAIN PROJECTS.
UH, WE ARE GONNA REDUCE THE, THE RECOMMENDATIONS THAT I HAVE IN HERE WOULD REDUCE THE CIP FROM A BILLION DOLLARS TO 860 MILLION, AND IT WOULD REDUCE THE UTILITIES FROM 600 MILLION TO 460 MILLION.
I KNOW THAT'S NOT A TREMENDOUS NUMBER, BUT THAT'S WHAT I CAME UP WITH ON THIS FIRST PASS.
[00:05:01]
NEXT IS WE'RE HAVING THE DISCUSSION TONIGHT BASED ON THE QUESTIONS THAT I ASK YOU AND THE ANSWERS THAT YOU GIVE US BACK, WE'LL MAKE FURTHER ADJUSTMENTS BASED ON THAT.AND THEN WE'LL COME BACK FOR FUTURE, FUTURE FOLLOW UP MEETINGS.
ALL RIGHT? UM, I JUST SAY I'D LIKE TO SEE UTILITY TYPICALLY BE BROKEN DOWN BETWEEN WATER AND WASTEWATER BECAUSE IT'S TWO DIFFERENT ONE'S, THE WHOLE CITY AND ONE'S A SUBSET OF OF THE CITIZENS THAT, SO, OKAY.
SO THIS, THIS SLIDE IS QUASI TAKEN DIRECTLY OUT OF YOUR MASTER PLAN.
AND SO I JUST WANNA REFRESH EVERYBODY'S MEMORY.
I WASN'T HERE WHEN YOU DID THE MASTER PLAN.
IT WAS APPROVED IN DECEMBER OF 22.
UM, BUT FOR THE FIRST FIVE YEARS IN YOUR MASTER PLAN, THE CITY DECIDED THAT THEY WERE GONNA USE AN 18.8% GROWTH RATE FOR THAT FIVE YEAR PERIOD.
SO THAT'S WHAT YOU SEE HERE IS, AND THIS IS YOU, THIS GROWTH RATE WAS USED IN BOTH YOUR WATER AND YOUR WASTEWATER MASTER PLANS.
AND SO, UH, WHAT WE'VE DONE IS WE'VE UPDATED IT HERE.
AND YOU CAN SEE YOU WERE PROJECTED TO HAVE, UM, 8,222 LU IN 2023 BASED ON WHAT WE ACTUALLY HAVE ON THE GROUND TODAY.
YOU'RE AT 7,534, SO YOU DIDN'T QUITE ACHIEVE YOUR 18.8% GROWTH RATE, BUT YOU'RE PRETTY CLOSE.
AND THEN WHEN YOU ACCOUNT FOR THE APPROVED LUS FROM YOUR APPROVED SCRS, SO THAT'S ANOTHER CONVERSATION WE'RE HAVING LATER TONIGHT.
YOU'RE ACTUALLY AT OVER 10 THOUSANDS.
SO DEPENDING ON HOW YOU ACCOUNT FOR THAT, YOU, YOU MAY BE ABOVE YOUR GROWTH RATE THE NEXT FIVE YEARS.
AND WE DON'T KNOW WHERE THAT GREEN, UM, TRIANGLE REALLY IS BECAUSE WE'RE NOT APPROVING THOSE AND, AND THEY'RE NOT USING THOSE TODAY.
SO YOU'VE ALREADY APPROVED THOSE.
THEY'RE NOT USING ALL OF THIS.
THAT'S WHAT I MEANT USING, YEAH.
SO THE GREEN IS THE, THE, IN ADDITION TO THE 7,534 THAT'S ON THE GROUND RIGHT NOW AND BEING USED, YOU'VE APPROVED AN EXTRA WHATEVER THAT IS, 3000 THOUSAND.
AND SO THAT'S WHERE THE GREEN, BUT DEPENDING ON WHERE THEY COME ONLINE IS WHERE THAT SLIDE TO THE RIGHT OF THE RIGHT, RIGHT.
NOW, MATT, TALK ABOUT AN APPROVED S-E-R-L-U-E.
SO IS THAT, IS THAT IF I JUST AM ASKING YOU TO RUN AN SER AND YOU SAY, AND I SAY I WANT A THOUSAND LUS, AND YOU SAY, HERE'S WHAT IT WOULD TAKE, DOES THAT COUNT AS APPROVED OR IS IT ONCE COUNCIL TAKES ACTION ON SOMETHING THAT THEN IT MAKES IT APPROVED? THESE ARE THE ONES THAT COUNCIL HAS APPROVED.
SO, UH, I DON'T WANT TO STEAL MY THUNDER FROM LATER TONIGHT, BUT YEAH, WE'VE, WE'VE DONE 50 SCRS IN 2023 MM-HMM,
SO THAT'S WHERE THAT GREEN TRIANGLE COMES FROM, FROM THOSE 20 APPROVED SCR.
I JUST WANNA MAKE SURE THAT THAT'S NOT A, A LARGE NUMBER OF PROJECTS THAT ARE SITTING OUT THERE, THAT STAFF HAS APPROVED TO GET TO THAT NUMBER.
THAT THOSE ARE ACTUALLY APPROVED BY COUNCIL.
THE OTHER 30 SCRS ARE NOT ACCOUNTED FOR.
ALL RIGHT? SECOND FIVE YEARS, THE DECISION WAS DECREASE THAT GROWTH RATE TO 5.9% BECAUSE AT SOME POINT THINGS ARE GONNA SLOW DOWN.
UM, AND WE'RE GONNA START RUNNING OUT OF LAND AND ALL THOSE KIND OF THINGS.
AND THEN, UM, BEYOND THE NEXT 10 YEARS FURTHER OUT, FLATTEN IT OUT EVEN MORE.
THAT'S TYPICAL KIND OF GROWTH PATTERN OF MOST CITIES IS YOU RAMP UP AND THEN YOU FLATTEN OUT AND THEN YOU GET TO BASICALLY WHERE YOU'RE DOING ALL MOSTLY JUST INFILL TYPE STUFF.
SO I JUST WANTED TO RECAP THAT THAT'S HOW THE MASTER PLANS WERE CREATED.
AND SO A LOT OF THE INFORMATION THAT WE'RE GOING OFF OF IS BASED ON THESE GROWTH RATES AND, AND THE MASTER PLANS THAT ON THAT LAST SLIDE.
SO THAT, THAT'S WHAT WE'RE TALKING WATER OR WE'RE TALKING WASTEWATER.
UH, SO THE GROWTH RATES, I MEAN, THIS IS WATER.
SO THIS IS A WATER, THIS IS A WATER.
ONE OF THINGS I'VE ALWAYS QUESTIONED WAS THIS CONTINUAL GRAPH UP OF THE HU CCN, BECAUSE THE HU CCN IS EXTREMELY SMALL, AT SOME POINT THERE OUGHT TO BE A PLATEAU ON IT.
AND IT'S ALWAYS CONCERNED ME THAT WE, WE ARE SHOWING ALL THIS GROWTH AND A WATER CCN THAT DOESN'T HAVE THE LANDMASS TO GET IT.
SO AT WHAT POINT WILL WE KNOW YOU CAN'T GROW ANY MORE WATER UNLESS YOU TEAR DOWN A NEIGHBORHOOD AND YOU GO VERTICAL THREE STORIES.
BECAUSE I FEEL LIKE POTENTIALLY WE MAY BE GEARING UP FOR WATER THAT WE'LL NEVER BE ABLE TO CONSUME.
BECAUSE ONE DAY SOMEONE WILL WAKE UP AND GO, GUYS, WE CAN'T GIVE THIS WATER AWAY BECAUSE IT'S ALL BUILT OUT.
AND I DON'T WANT TO TAX PEOPLE TODAY TO HOST SAIL WATER TO JOAN AND MANVILLE FOR THEIR GROWTH.
BUT HOW DO WE FIGURE THAT OUT? WELL, SO, UM, ONE OF THE THINGS THAT I'M WORKING WITH OUR GIS DEPARTMENT ON
[00:10:01]
RIGHT NOW IS LOOKING AT HOW MUCH LAND WE HAVE IN OUR WATER.CC N HOW MUCH OF THE LAND IS ALREADY ACCOUNTED FOR AS FAR AS WE'VE GOT STUFF ON THE GROUND BEING USING WATER TODAY.
HOW MUCH OF THAT LAND HAS ALREADY BEEN ACCOUNTED FOR IN APPROVED SCRS AND HOW MUCH LAND IS LEFT OVER? AND THEN WE'RE, MY RATIONALE IS THEN WE CAN GO FROM THERE USING THIS GROWTH RATE TO SEE WHEN WE WOULD USE UP THAT REMAINING LAND, THAT LAND THAT'S LEFT OVER.
AND THEN AT THAT POINT, OBVIOUSLY WE CAN'T GROW AT THAT RATE ANYMORE BECAUSE BASICALLY IT'S JUST INFILL.
AND SO THEN WE COULD FIGURE OUT WHERE THAT PEAK IS AND APPROXIMATE WHEN THAT PLATEAU WOULD HAPPEN FOR US.
YOU GUYS REMEMBER WHEN ISAAC DID THAT WHEN WE HAD THE SHEET AND THEY PUT EVERY SINGLE, THEY, THEY, THEY ESTABLISHED AN LUE TO EVERY SINGLE APPROVED THEY HAD LIKE APPROVED IN 20 21, 20 22, 20 23 SCRS THAT ARE IN PROCESS.
I MEAN, SO THE WORK'S ALREADY BEEN DONE.
BUT NOW YOU HAVE TO TRUE THINGS UP BECAUSE THIS MODEL IS A YEAR OLD NOW AND MAYBE THE MODEL PREDICTED THAT THIS PLOT OF LAND WOULD HAVE 50 LUS AND NOW IT HAS 40.
BUT TO GET TO THE FLAT LINE, MATT'S SAYING YOU GUYS ARE GOING THROUGH AND WORKING ON FIGURING OUT ALL THIS.
AND I'M JUST SAYING WE'VE ALREADY FIGURED IT OUT.
SO WE OUGHT TO BE, TAKE THE INFORMATION WHERE WE FIGURE IT OUT AT SOME POINT.
'CAUSE YOU WANT, YOU WANT, YOU WANT ANSWERS ON DO WE DO A MORATORIUM? BUT YOU CAN'T GIVE US THE INFORMATION ON DO WE HAVE MORE WATER THAN WE'RE EVER GONNA USE? ARE WE GONNA REALLY RUN OUT WATER? LIKE WHERE DOES THE LINE DEADLINE? AND IF YOU CAN'T GIVE US THAT, THEN HOW DO WE TELL YOU HOW TO, HOW TO HANDLE GROWTH? MM-HMM,
'CAUSE YOU GUYS WILL TELL US WE NEED 29 MILLION GALLONS OF WATER A DAY, OR WHAT IS THAT? 29,000 LUS.
AND YOU MAY COME BACK HERE IN THREE MONTHS AGO.
ACTUALLY YOU ONLY NEED 19,000.
'CAUSE AT 19,000 THE WHOLE CITY'S BUILT OUT.
I MEAN THAT CHANGES THE CONVERSATION OR I DON'T KNOW.
I'M JUST THROWING IT OUT THERE 'CAUSE IT'S AN INFORMATION I HAVEN'T BEEN ABLE TO GET FOR TWO YEARS SINCE ISAAC WAS HERE.
I DIDN'T, I DIDN'T KNOW THAT IT HAD ALREADY BEEN DONE.
SO THAT'S WHY I'VE BEEN WORKING WITH OUR GIS WITH THE BEST WAY THAT I KNEW TO COME UP WITH A WAY TO FIND WHERE WE WERE GONNA RUN OUT OF LAND.
I I MAY EVEN HAVE A COPY AT HOME.
UH, SO HERE'S THE THINGS THAT WE HAVE TO KEEP IN MIND.
'CAUSE AS CITY ENGINEER, I HAVE A COUPLE OF THINGS, RIGHT? I HAVE TO MAKE SURE THAT YOU GUYS ARE GETTING WHAT YOU NEED FROM ME AS A PROFESSIONAL ENGINEER.
BUT I ALSO HAVE TO MAKE SURE THAT WE STAY IN COMPLIANCE WITH THE STATE GUIDELINES AND CRITERIA.
SO I'M HERE AS YOUR PROFESSIONAL TO GIVE YOU GUIDANCE AND RECOMMENDATIONS, BUT I'M ALSO HERE KIND OF LIKE DOTTIE AND JAMES.
I'M HERE TO MAKE SURE THAT YOU DON'T GET YOURSELF INTO TROUBLE.
AND SO, UH, ON WATER, THERE ARE THREE THINGS THAT THE STATE LOOKS AT TO MAKE SURE THAT THE PUBLIC WATER SYSTEM THAT WE'RE OWNING, OPERATING AND MAINTAINING IS IN COMPLIANCE WITH THEIR REGULATIONS.
WE HAVE TO HAVE THE SUFFICIENT LEVEL OF WATER PRODUCTION.
UM, AND THE STATE SAYS THAT THAT COMES OUT TO 0.6 GPM GALLONS PER MINUTE PER CONNECTION OR YOUR PEAK DAY DEMAND, WHICHEVER IS GREATER.
HATO IS CURRENTLY UNDER AN A CR, WHICH IS AN ALTERNATIVE CAPACITY REQUIREMENT, WHICH ALLOWS US TO CHANGE THAT 0.6 GPM TO 0.4 GPN.
SO, UM, THAT'S ONE THING THAT I HAVE TO KEEP AN EYE ON AND UM, I KNOW IT'S KIND OF HARD WHEN I'M TALKING THROUGH ALL THESE NUMBERS 'CAUSE I'M LUS, GPS, GPMS, ALL THAT KIND OF STUFF.
UM, SO JUST FOR CLARITY, JUST SO THAT YOU HAVE A REFERENCE, WHEN YOU USE THAT 0.4 GPM PER CONNECTION, WHAT WE WOULD BE REQUIRED TO HAVE AS FAR AS OUR WATER PRODUCTION IS 3002 GPM TO BE IN COMPLIANCE WITH THE STATE'S.
UM, RE WITH TCEQ, UM, CURRENTLY WHEN YOU TAKE OUR 4.05 GPD THAT WE HAVE AVAILABLE TO US USING MANVILLE, TAYLOR AND SHILOH, THAT ONLY COMES UP TO 2,813 GPM.
NOW, I KNOW THAT SOUNDS LIKE WE'RE NOT IN COMPLIANCE, WE HAVE NOT RECEIVED ANYTHING FROM TCEQ AND WE'RE WORKING ON THE ISSUES, BUT I'VE BEEN IN CONSTANT COMMUNICATION WITH THE CITY MANAGER.
AND SO WE'RE TRYING TO, THAT'S ONE OF THE REASONS WHY WE'RE ASKING AT WHAT POINT DO WE WANNA CONSIDER SLOWING THINGS DOWN.
AND WHEN WE, AS WE GO ON, I'LL, I'LL, I'LL SHOW YOU IN THE SLIDES AND IN THE HANDOUT THAT I GAVE YOU, WHY IT'S NOT THAT CUT AND DRY, I'M JUST SAYING, WELL, WE DON'T MEET THAT REQUIREMENT BECAUSE AS YOU'LL SEE WHEN I GO INTO
[00:15:01]
MORE DEPTH, LIKE IT'S THE, THE WATER CHANGES EVERY DAY AND WE HAVEN'T ACTUALLY GOTTEN TO A POINT WHERE WE DON'T HAVE WATER.WHEN YOU SAY WE HAVEN'T RECEIVED A LETTER, IS THAT WE HAVEN'T RECEIVED, WE RECEIVED ONE IN, UH, 2019 IN THE SUMMER.
WE HAVEN'T RECEIVED ANY SINCE THEN.
I DON'T, I DON'T KNOW ABOUT ONE IN 2019, WE HAVEN'T RECEIVED ANY THAT I'M AWARE OF.
2019, WE WERE TOLD WE HAD A LETTER, SAM RAY WAS THE ENGINEER AND I THOUGHT HE WAS GONNA GET FIRED THAT DAY BECAUSE WE'VE BEEN TALKING ABOUT WATER AND HE SAID WE RECEIVED, WE NEED THESE IMPROVEMENTS BECAUSE WE RECEIVED A LETTER FROM TTQ THAT WE ARE OUTSIDE OF THEIR GUIDELINES AND WE'RE PAST 80, 80% POWER.
WHATEVER IT WAS BEEN ON THE WASTEWATER TREATMENT? NO, IT WAS ON DRINKING WATER.
WELL, SO, UM, I HAVEN'T, WE HAVEN'T RECEIVED ANYTHING.
I CAN TELL YOU BASED ON THE NUMBERS, UM, THAT I'VE BEEN WORKING WITH, WITH FRIESA NICHOLS DOES OUR WATER MODEL.
I'VE BEEN WORKING WITH THEM ON A REGULAR BASIS SINCE I CAME ON BOARD MONITORING ALL THIS STUFF, MAKING SURE THAT THE CITY MANAGER'S AWARE OF IT AND WE'VE BEEN TALKING THROUGH IT EVERY DAY AND FIGURING OUT WHAT, HOW WE WANT TO MOVE FORWARD, WHAT WE WANT TO DO.
AND, UM, WE HAVE NOT SEEN ANYTHING FROM TCEQ, BUT I, I CAN'T TELL YOU, WE'RE KEEPING A VERY CLOSE EYE ON THIS.
UM, AND LIKE I SAID, AS I GO THROUGH THE PRESENTATION, YOU'LL SEE WHY WE HAVEN'T LIKE THROWN UP ANY GIANT RED FLAGS AND STARTED POUNDING ON BUTTONS AND SCREAMING.
UH, WE HAVE TO BE ABLE TO CONVEY THE WATER.
SO IT'S ONE THING TO PRODUCE IT AND GET IT FROM THE WELLS.
IT'S ANOTHER THING TO BE ABLE TO CONVEY IT TO EVERYBODY AND ACHIEVE THE, UH, SUSTAINABLE PRESSURE THAT TCEQ REQUIRES.
AND IF YOU DON'T ACHIEVE THAT PRESSURE, IF YOU DROP BELOW A CERTAIN, THEN YOU HAVE TO ISSUE BELOW WATER NOTICES.
AND IT'S A WHOLE, IT'S A WHOLE, UM, THING THAT YOU HAVE TO GO THROUGH.
THEN THE THIRD THING ON WATER IS WATER STORAGE.
YOU HAVE TO BE ABLE TO STORE A SUFFICIENT AMOUNT OF WATER PER TCEQ REQUIREMENTS PER EVERY CONNECTION THAT YOU HAVE ON THE GROUND.
AND SO AS YOU CAN SEE ON ALL THREE OF THOSE ITEMS, THE CONTINUED GROWTH THAT WE ARE SEEING IS GONNA REQUIRE IMPROVEMENTS, ADDITIONS, UPGRADES IN ALL THREE OF THOSE AREAS.
AND THEN YOU FLIP OVER TO THE OTHER SIDE OF THE SLIDE WASTEWATER, UM, WE HAVE TO HAVE SUFFICIENT CAPACITY TO COLLECT THE WASTEWATER AND CONVEY IT TO A TREATMENT PLANT.
THERE'S NO TCEQ REQUIREMENT ON THAT PARTICULAR THING.
YOU JUST HAVE TO BE ABLE TO GET IT FROM POINT A TO POINT B WITHOUT OVERFLOWS BACKUPS, SPILLAGES, THOSE KIND OF THINGS.
UM, AND THEN WASTEWATER TREATMENT, WE HAVE TO BE ABLE TO TREAT THE VOLUME OF FLOW AND ACHIEVE THE BIOLOGICAL LEVELS THAT ARE LISTED IN OUR PERMITS TO STAY IN COMPLIANCE WITH TCEQ.
AND JUST LIKE IS IN THE WATER WITH THE WASTEWATER, THE CURRENT GROWTH PATTERNS ARE BASICALLY DEMANDING THAT WE MAKE IMPROVEMENTS AT BOTH THE TREATMENT PLANTS AND THE CONVEYANCE SYSTEM.
AND YOU'LL SEE THAT AS WE CONTINUE ON THROUGH THE, THROUGH THE PRESENTATION.
SO I KNOW I'M FLIPPING BACK AND FORTH BETWEEN WATER AND WASTEWATER, BUT I WAS TRYING TO DO WHAT COUNCIL MEMBER THORNTON WAS WAS SAYING, WHICH IS SHOW YOU GUYS BOTH BECAUSE THERE, THEY'RE TWO SEPARATE THINGS.
AND SO THIS AGAIN, IS A SLIDE THAT'S QUASI TAKEN FROM THE MASTER PLAN AND IT SHOWS OUR HISTORICAL WATER.
UM, THE LIGHT BLUE TO THE LEFT.
UH, WE HAVE ALSO IMPOSED THE YELLOW AND GREEN.
THE, SO THE CIRCLE IS ACTUAL, UM, 2023 REQUIREMENTS.
THE GREEN IS WHEN YOU ACCOUNT FOR THOSE APPROVED SCRS AND THEN IT SHOWS THE BLACK LINE IS WHAT WE HAVE AVAILABLE TO US WHEN YOU ACCOUNT FOR SHILOH, MANVILLE AND TAYLOR.
THE RED LINE IS WHEN YOU ACCOUNT FOR THE ONES I ALREADY MENTIONED, BUT THEN WE ALSO HAVE THAT CONTRACT WITH JONAH THAT SAYS DURING AN EMERGENCY WE CAN GET UP TO A MILLION GALLONS A DAY FROM THEM.
SO THAT'S WHY THAT RED LINE IS ON THERE.
AND SO AS YOU CAN SEE IN 2023, WE ARE AT OUR LIMIT.
THAT'S NOT EVEN ACCOUNTING FOR THE GROWTH.
WHEN YOU ACCOUNT FOR THE GROWTH, YOU CAN SEE THE YELLOW CIRCLE AND THE GREEN TRIANGLE ARE BOTH OVER THE LIMIT, WHICH IS WHAT I JUST CONVEYED TO YOU.
AND THIS SHOW SOMETHING DIFFERENT.
THIS DOESN'T SHOW US EVER GETTING ABOVE THE BLACK WALL.
WELL, SO THAT'S, SO, SO I'LL, I'LL, I'LL GET, I'LL GET THERE IN A SECOND.
SO WELL ACTUALLY, SINCE WE'RE ALREADY TALKING ABOUT, LET'S JUST GO AHEAD.
SO THERE ARE OTHER THINGS THAT YOU HAVE TO ACCOUNT FOR.
SO THIS IS YOUR ACTUAL WATER USAGE, BUT WHEN YOU'RE TALKING ABOUT, UM, ALL OF YOUR WATER DEMAND, YOU HAVE TO ACCOUNT FOR THINGS LIKE WATER LEAKS, FLUSHING YOUR, UH, HYDRANTS, WHICH WE HAVE A LOT OF DEAD END LINES INTAKE IN, SORRY, IN HU AND TAYLOR HAS 'EM TOO.
I JUST, I KNOW THAT BECAUSE I USED TO WORK THERE
SO THAT'S WATER THAT WE ARE PAYING FOR OR WE ARE PRODUCING FROM OUR WELLS, AND THEN WE'RE JUST PUMPING IT OUT ON THE GROUND TO FLUSH THOSE LINES
[00:20:01]
TO KEEP THE, UM, CHLORINE RESIDUALS AT THE LEVEL THAT THEY'RE SUPPOSED TO BE TO MEET THE REQUIREMENTS FOR TCQ.THE OTHER THINGS IS YOU HAVE LEAKS.
WE ALL KNOW ABOUT THE CONTRACTORS HITTING OUR LINES OR FROZEN LINES THAT BUST OR WHATEVER.
SO YOU HAVE LEAKS AND THEN YOU HAVE THE DIRTY WATER CALLS, WHICH IS BASICALLY SOMEBODY CALLS UP AND SAYS, HEY, MY WATER'S LOOKING REALLY DIRTY.
AND SO THAT'S A REACTIVE THING.
AND WE GO AND FLUSH THE LINES, SAME KIND OF THING.
WE DUMP ALL THE WATER OUT ON THE GROUND TILL IT'S COMING THROUGH CLEAR, AND WE CLOSE UP THE HYDRANT AND THEN THEY, THEY GET RID OF THAT DIRTY WATER.
AND THEN THERE'S THE BULK WATER USAGE.
SO EVERY TIME WE THE CITY DOES A, UH, A ROAD PROJECT THAT WE NEED WATER FROM, WE WILL JUST PULL UP OUR BULK TRUCK TO A WATER TANK AND FILL THAT UP.
THAT'S NOT METERED, BUT WE HAVE TO ACCOUNT FOR THAT WATER USE SOMEHOW.
AND SO WE JUST ACCOUNT FOR THAT IN A BULK USAGE.
SO YOU'RE NOT SEEING THAT IN THESE, BECAUSE THAT'S JUST WATER THAT WE COUNT THAT AS WATER LOST THAT WE'RE TRACKING.
WE'VE EITHER PURCHASED FROM TAYLOR, PURCHASED FROM MANVILLE, OR WE'VE PULLED OUT OF THE GROUND IN SHILOH THAT WE DON'T EVER RECEIVE ANY BENEFIT FROM.
THAT'S JUST WATER WE TAKE AND THEN WE DUMP IT BACK ON THE GROUND.
SO 20% OF OUR WATER NEVER MAKES IT TO A METER TAP AND GETS PAID FOR.
SO I RAN THE NUMBERS FOR 2023 ON AVERAGE, THE WATER LOSS THAT I JUST MENTIONED, ONE IN ANY OF THOSE ONE CATEGORY, ANY OF THE, THOSE FOUR CATEGORIES AVERAGED ABOUT 625,000 GALLONS A MONTH, WHICH IS WHAT IS A PERCENT, UM, NOR I CAME UP 20 IS IF IT'S 4 MILLION AND THE RED LINE'S FIVE AND THAT SAYS WE HIT FIVE IN 2022.
THE THE THE RED UH, HASH BOX ABOVE THE BLUE LINE, YEAH.
IS THE PAPER WATER THAT WE'RE SUPPOSED TO HAVE ACCORDING TO TCQ.
YEAH, THE BLUE BAR IS HOW MUCH WE ACTUALLY CONSUMED ON THE HIGHEST DAY.
OKAY, SO THIS IS ON THE HIGHEST DAY.
ON THE HIGHEST DAY WE PRODUCE THAT, WE HIT THE BLACK LINE.
ALMOST 2023, YOU ALMOST HIT THE BLACK LINE.
WELL, SO, SO KEEP IN MIND THIS IS COMING OUT OF YOUR MASTER PLAN.
SO THESE ARE THE, THESE ARE THE ESTIMATES BASED ON NUMBER OF CONNECTIONS THAT THEY ARE PROJECTING IN 20.
SO LOOK AT, IF YOU LOOK AT 2024 FORWARD AND GO FORWARD FROM THERE, THAT MAXIMUM DAY DEMAND.
SO REMEMBER THERE'S TWO THINGS THAT WE HAVE TO LOOK AT FOR TCEQ COMPLIANCE.
WE HAVE TO MEET THE MAXIMUM DAY DEMAND, OR WE HAVE TO MEET THE TCEQ CONNECTION LIMIT, WHICH FOR US IS 0.4 GPN, WHICHEVER IS GREAT.
SO THAT'S THE BLUE AND THE RED, THAT'S WHAT JAMES IS TALKING ABOUT.
THE RED IS THAT 0.4 TIMES OUR NUMBER OF CONNECTIONS IS THAT RED HASH BOX.
AND SO YOU CAN SEE IT KEEPS GOING UP BECAUSE TO YOUR POINT, MR. MAYOR, OUR GROWTH PATTERNS CAN PROJECT THAT WE'RE GONNA CONTINUALLY GROW.
AND SO THAT'S WHY THAT RED BOX, BUT THEN THE BLUE KEEPS GROWING BECAUSE THERE'S A CERTAIN DEMAND THAT WE ARE SEEING IN ALL OF THOSE CONNECTIONS.
AND SO WE'RE PROJECTING THAT THAT DEMAND KEEPS GROWING AS WELL.
SO THAT'S WHY YOU'RE SEEING THAT, THAT IN 2024, THAT BLUE BOX, IT'S THAT 5.05 MGD BECAUSE THEY'RE PROJECTING THAT THE PEAK DAY DEMAND BASED ON AN AVERAGE NUMBER IN THE MASTER PLAN.
THAT'S WHEN WE WOULD HIT THAT LIMIT.
THAT'S WHAT THEY'RE PROJECTING.
THE REASON I GAVE YOU GUYS THIS CHART, AND FOR THOSE OF YOU WHO CAME IN LATE, YOU DON'T HAVE IT.
SO YOU DON'T KNOW WHAT I'M TALKING ABOUT.
UM, THE REASON I GAVE YOU GUYS THIS CHART IS THIS IS OUR ACTUAL WATER USAGE THAT PUBLIC WORKS TRACKS AND IT'S FROM FOR THE PAST TWO CALENDAR YEARS.
DOES DOES SOMEONE HAVE THAT ELECTRONICALLY SO THEY CAN EMAIL IT TO COUNCIL MEMBER CLARK? UM, I HAVE IT IN AN EMAIL AND I CAN, I DON'T KNOW IF I CAN DO IT WITH MY SCREEN.
I JUST, BUT I CAN, I CAN EMAIL IT TO COUNCIL MEMBER CLARK AF AS SOON AS WE'RE DONE HERE.
UM, SO THIS IS YOUR ACTUAL WATER USAGE FOR THE PAST TWO YEARS, YEARS.
AND SO YOU CAN SEE WE NEVER ACTUALLY HIT THOSE LINES.
SO THAT, THAT'S WHY WHEN I STARTED THIS CONVERSATION I SAID, IT'S NOT A BLACK AND WHITE BECAUSE THERE'S A LOT OF VARIABLES THAT GO IN HERE.
AND SO, UM,
AND SO, UM, THE, I DIDN'T BRING MY
WHAT WHAT WE CAN DO ACTUALLY INSTEAD IS WE CAN PUT THE THRESHOLDS ON THERE BECAUSE REMEMBER THE, THE STAGES ARE TRIGGERED BY A CERTAIN PERCENTAGE OF PRODUCTION.
SO WE CAN JUST PUT ON THERE THE, THE TRIGGERS FOR THE, FOR THE STAGES.
AND YOU CAN SEE WHICH DAYS ARE OVER.
[00:25:02]
TO ME, I'M ASSUMING MAYBE IT DID BECAUSE WE HIT LIKE A STAGE THREE.EVERYBODY SAID, OH MY GOD, I CAN'T WATER.
AND THEN THEY STARTED INCHING UP A LITTLE BIT AND MAYBE THAT'S NOT IT.
BUT YEAH, BRAIN HAS A MASSIVE EFFECT ON THIS.
YOU DON'T HAVE THE WEATHER OVERLAYING ON THAT EITHER.
SO THERE'S A NUMBER OF THINGS THAT AFFECT IT.
BUT PREDOMINANTLY THE POINT IS, IS THAT IF YOU ONLY LOOK AT THIS CHART AND YOU DON'T UNDERSTAND THAT WHAT YOU'RE SEEING IS THE HIGHEST PRODUCTION OR FIVE PRODUCTION DAY FOR THE YEAR ON THIS CHART, AND YOU DON'T UNDERSTAND THAT THE, THAT THE RED HASHED BOX WOULD BE THE ENTIRE BAR IF YOU DIDN'T PRODUCE ANY WATER AT ALL FOR THE YEAR.
BECAUSE THE RED HASH BOX IS HOW MUCH TCQ SAYS ON PAPER.
AND THEN THE BLUE IS HOW MUCH YOU PRODUCED ON THE HIGHEST DAY.
BUT, BUT IF THAT'S ONLY ONE DAY OUT OF THE YEAR AND THE REST OF THE YEAR YOU'RE, YOU'RE WELL BELOW YOUR THRESHOLDS, IT'S NOT AS DIRE AS IT MAY APPEAR ON FIRST VIEW.
THAT DOESN'T GO AHEAD OR THAT'S A STAGE FIVE AND WE'RE MAKING IT NOT LOOK AS BAD.
BUT IN REALITY, YOU CAN'T WASH YOUR CLOTHES ON EVEN NUMBER OF DAYS BECAUSE WE'RE ABOUT TO RUN OUTTA WATER.
BUT THE GRAFT DOESN'T MAKE IT LOOK BAD.
WELL, NONE OF OUR REQUIREMENTS ARE QUITE THAT TO DRAC BIT.
WE FOUR THIS YEAR AND WE'RE NOT GETTING MORE WATER AND WE THE GROWTH THAT MEANS IF I, ASSUMING WE WENT TO STAGE THREE, WE WENT TO STAGE THREE.
STAGE WE WENT TO STAGE THREE MM-HMM.
AND SO NEXT YEAR IT WON'T RAIN AGAIN ALL SUMMER.
AND SO I'M ASSUMING WE'LL HAVE AT LEAST A STAGE THREE.
WE MAY GO TO STAGE FOUR OR FIVE AND WE DIDN'T HAVE A WATERLINE BREAK.
AND GOD FORBID THAT'S THE FIRST YEAR THAT I'VE BEEN ON COUNCIL.
WE DIDN'T HAVE WATERLINE BREAKS.
SO IF THAT HAPPENS, WE HAD WATERLINE BREAKS, BUT NOT LIKE I'M TALKING LIKE THE MAIN
SO THAT'S ALWAYS I BRING THAT UP IS TO ME THIS DOESN'T LOOK AS DIRE AND I THINK IT'S A BIGGER ISSUE THAN WHAT THIS GRAPH MAKES A LITTLE MORE.
BUT THESE ARE, THESE ARE ANNUALLY THOUGH, RIGHT? THESE ARE, THESE ARE ANNUAL PROJECTIONS.
SO IT'S IT'S SHOWING LIKE THE WHOLE YEAR.
THAT'S SHOWING YOU THE WORST DAY OF THE YEAR IS WHAT THAT GRAPHIC IS SHOWING YOU.
MAX, THE MAX THE WORST DAY IN A STAGE THREE, THE WORST DAY IN A YEAR.
IT DOESN'T MATTER WHAT STAGE YOU'RE IN OR ANYTHING, THE HIGHEST PRODUCTION THAT YOU EXPECT TO HAVE.
OKAY, SO STAGE THREE MAKES IT BETTER THAN THAT.
SO THE I THE IDEA AND SO I CAN, THAT CHANGED THAT A LITTLE BIT.
I CAN TELL YOU RIGHT NOW THAT STAGE ONE KICKS IN AT 75% OF OUR WATER USAGE.
SO WHEN YOU TAKE 4.05 MILLION TIMES 0.75, IT'S ROUGHLY 3 MILLION GALLONS.
STAGE TWO KICKS IN AT ROUGHLY 3.24, STAGE THREE KICKS IN AT ROUGHLY 3.4, THREE POINT.
WHAT IS STAGE TWO? STAGE TWO IS 3.24 ROUGHLY.
I'M, I'M ROUNDING BECAUSE I JUST DID REAL QUICK.
SO I SEE WHY WE KIND OF FREAK OUT IN THE SUMMER.
WE HIT STAGE ONE IN JULY AND TWO THREE, YEAH, WE'RE, UH, WE'RE ABOUT TO RUN OUT AND YEAH.
AND STAGE ONE, STAGE TWO, 200,000 GALLONS IS THAT MUCH.
AND AGAIN, THAT ONE SPIKE THAT YOU SEE THAT'S CLOSE TO THE BLACK LINE, THAT THAT'S A DAY, RIGHT? A DAY OF PRODUCTION.
SO, AND IT'S NOT, IT'S NOT THE END OF THE WORLD IF YOU EXCEED YOUR PRODUCTION FOR A DAY OR TWO OR THREE SOMETIMES, BUT IF YOU DO IT FOR FOUR, FIVE OR SIX DAYS IN A ROW, THAT STARTS TO BECOME A PROBLEM BECAUSE BACK TO MATT'S POINT, THERE'S THREE COMPONENTS OF THIS.
THERE'S THE PRODUCTION, THERE'S THE, UH, PRESSURE OR DISTRIBUTION AND THEN THERE'S THE STORAGE.
SO EFFECTIVELY WHAT THE SYSTEM ENDS UP DOING TO MAKE UP FOR CONSUMING MORE WATER THAN WE'RE PRODUCING IS THE STORAGE STARTS TO DEPLETE AND THE THE LEVELS START TO COME DOWN.
YOU CAN DO THAT FOR A CERTAIN PERIOD OF TIME BEFORE YOU START LOSING PRESSURE.
THEN ONCE YOU START LOSING PRESSURE, NOW YOU'RE KIND OF INTO A CRITICAL FAILURE LOOP.
AND THAT'S WHAT THE UTILITY GUYS ARE ARE, ARE BALANCING TO MAKE SURE, SO IF THEY HAVE TO DO AN EMERGENCY DECLARATION, YOU KNOW, SHUT OFF WATER, BOIL WATER, THOSE SORTS OF THINGS, THEY'RE WATCHING ALL THAT TO, TO PREVENT ANY TYPE OF CRITICAL LOOP BEGINNING WHERE THE PRESSURE DROPS SO LOW NOW THAT EVERYTHING ELSE IS JUST, YOU KNOW, LIKE A DOMINO EFFECT, YOU KNOW, OCCURRING.
SO GETTING BACK TO, SO ON TO JAMES'S POINT WHEN I SAID EARLIER THAT WE NEED 3002 GPM AND WE HAVE 2,800 GPM AND I SAID THERE'S A REASON WHY WE HAVEN'T THROWN UP ALL THE RED FLAGS AND STARTED HITTING EVERY BUTTON AND SCREAMING FOR SOMEBODY TO HELP.
IT'S BECAUSE OF THAT, BECAUSE WE'RE MONITORING THE WHOLE SYSTEM, NOT JUST THAT ONE PIECE, BUT WE WANNA MAKE SURE THE CITY COUNCIL'S FULLY AWARE OF ALL THE FACTS AND FIGURES SO THAT YOU GUYS CAN MAKE THE BEST DECISION POSSIBLE.
'CAUSE I MEAN WE WE'RE USING OUR PROFESSIONAL JUDGMENT, BUT ULTIMATELY YOU GUYS ARE THE ONES RESPONSIBLE FOR TAKING CARE OF, OF THE CITY.
ALRIGHT, SO I'M GONNA START TRYING TO FLY THROUGH THESE A LITTLE MORE 'CAUSE I WANNA GET TO THE ACTUAL CIP STUFF.
SO ELEVATED STORAGE, YOU CAN SEE THAT.
UH, AND SO REMEMBER WE HAVE TWO PRESSURE PLANES IN THE CITY.
THE EIGHT 90 PRESSURE PLANE, WHICH
[00:30:01]
IS THE HIGHER PRESSURE PLANE, AND IT'S ROUGHLY LIKE THE NORTHWESTERN QUADRANT OF THE CITY.WE DON'T HAVE ANY CONCERNS THERE BASED ON THE CURRENT MASTER PLAN, BASED ON CURRENT GROWTH PROJECTIONS WE HAVE.
SO FOR STORAGE CAPACITY, WE HAVE SUFFICIENT STORAGE TO GET US, I BELIEVE I REMEMBER THE MASTER PLAN PRETTY MUCH ALL THE WAY THROUGH 2047.
UM, IN THE 8 0 1 PRESSURE PLANE, WHICH IS THE LOWER PRESSURE PLANE AND IS THE VAST MAJORITY OF THE CITY, YOU CAN SEE THAT THE MASTER PLAN PROJECTS THAT WE ARE GOING TO, UH, RUN OUT OF STORAGE IN 2025.
BUT THAT'S WHY WE'RE WORKING ON THE COTTONWOOD ELEVATED STORAGE TANK.
'CAUSE THAT RESOLVED THAT ISSUE.
UM, THE PUMPING CAPACITY, SAME THING ON THE EIGHT 90 PRESSURE PLANE.
WE'RE NOT, WE DON'T HAVE ANY CONCERNS THERE ON THE LOWER 8 0 1 PRESSURE PLANE.
YOU CAN SEE THAT IN 2024, THE MASTER PLAN PROJECTED THAT WE WOULD NOT HAVE SUFFICIENT PUMPING CAPACITY, BUT WE'RE FIXING THAT WITH THE FRAME SWITCH PROJECT THAT'S ALREADY IN CONSTRUCTION.
ALL RIGHT, SO THAT GETS ME TO THE ACTUAL CIP STUFF.
SO AGAIN, I'M FOCUSING IN ON WATER FIRST AND THEN I'LL GET TO WASTEWATER.
UH, SO THIS IS THE CURRENT CIP.
SO YOU CAN SEE WE HAVE 25 WATER PROJECTS IN THE CURRENT APPROVED CIP FOR JUST UNDER $200 MILLION.
THIS IS THE BREAKDOWN OF ALL THOSE PROJECTS.
I APOLOGIZE THAT IT'S SO SMALL, BUT THERE'S A LOT OF PROJECTS.
UM, AND SO, UM, I'M NOT GONNA GO TOO IN DEPTH THERE.
I JUST WANTED YOU TO HAVE THAT INFORMATION SO YOU COULD SEE IT.
SO THIS IS ME GOING THROUGH EVERY SINGLE ONE OF THOSE PROJECTS THAT YOU JUST SAW THAT WAS IN THE APPROVED CIP FOR 2023 THROUGH 2028.
AND THEN I'M COMPARING IT, TELLING YOU EXACTLY WHICH PROJECT IT IS IN THE MASTER PLAN, WHAT THE MASTER PLAN SAYS THAT THE SCHEDULE SHOULD BE FOR THAT, ACCOMPLISHING THAT PROJECT.
AND THEN I SAY, HERE'S THE STATUS.
SO YOU CAN SEE SOME OF 'EM ARE ALREADY IN CONSTRUCTION.
SOME OF THEM WE DELAYED TO, YOU KNOW, 2026 OR 2027.
AND THEN I'M SAYING WHETHER OR NOT I RECOMMEND A CHANGE.
AND THAT'S BASED ON MY KNOWLEDGE OF PROJECTS THAT ARE COMING.
UH, SOME OF THEM, IF THEY'RE IN CONSTRUCTION, OBVIOUSLY I'M NOT GONNA RECOMMEND WE STOP CONSTRUCTION TO DELAY IT TO SOME FUTURE YEAR.
UM, AND THEN SOME OF THEM I'M LIKE, YOU KNOW, LIKE, UH, THAT W 0 9, 20 23, IT DOESN'T EVEN SHOW UP IN THE MASTER PLAN.
IF WE DELAYED IT TO 2026, MY RECOMMENDATION IS JUST REMOVE IT FROM THE CIP.
UM, AND THEN SOME OF THEM WERE SAYING, ALL RIGHT, LET'S MOVE THESE OUT.
BUT, 'CAUSE LIKE IF YOU JUMP DOWN TO W 17 20 24, WHICH IS THE HIGHWAY 79 WESTERN WATERLINE CROSSING, THAT'S PROJECT 16 IN YOUR MASTER PLAN.
AND THEY SAID WE DID, WE WOULDN'T NEED TO DO THAT UNTIL 20 20, 20 33 TO THE 2047 PERIOD.
SO I'M SAYING LET'S MOVE IT OUT TO THAT CI THAT FIRST, CIP AND REEVALUATE THEN.
SO LET'S PUT IT IN THE 2033 TO 2037 CIP AND REEVALUATE AS WE GET CLOSER TO THAT TIMELINE.
SO THOSE, THOSE ARE MY RECOMMENDATIONS.
WHAT THAT DOES FOR YOU IS IT, HERE, LET ME, UH, IT DECREASES YOUR WATER.
CIP, UM, DOWN TO 51 MILLION FROM THE 120 WHATEVER MILLION.
AND THAT'S IN THIS FIVE YEAR PERIOD.
SO I'M LOOKING AT 24, 25, 26, 27, 28.
LOOKING AT ALL THOSE YEARS, THAT'S IN OUR CURRENT CIP SAYING, WHAT DOES THAT CHANGE FOR US? IT CHANGES US FROM 125 MILLION THAT WE'RE STARTING AT TODAY, AND IT WOULD REDUCE US DOWN TO 51 MILLION.
ALL RIGHT, THEN WATER, OR SORRY, THEN WASTEWATER.
SO THESE ARE THE CONSTRAINTS THAT WE HAVE ON OUR WASTEWATER SYSTEM.
I ASKED GARVER TO GO INTO THE MODEL AND TELL ME WHERE THEY WOULD FOCUS IF THEY HAD TO FOCUS.
AND SO RIGHT THERE YOU CAN SEE NUMBER ONE, THE ENCLAVE LIFT STATION.
WE'RE AT 76% CAPACITY OF THAT LIFT STATION.
AND WE ARE PROJECTED TO RUN OUT OF CAPACITY IN 2024.
SO WE ARE DOING A PROJECT RIGHT NOW TO EXTEND THAT LIFE FOR A LITTLE BIT TO BIAS SOME TIME.
'CAUSE I TALKED TO RICK AND I TALKED TO JAMES, AND SO WE WERE LIKE, ALL RIGHT, LET'S BUY US SOME TIME, BUT ULTIMATELY WE'RE GONNA HAVE TO FIGURE OUT A SOLUTION THERE.
UH, NUMBER TWO, YOU JUMP OVER THE GLENWOOD INTERCEPTOR.
THAT IS AT 92% OF THE CAPACITY RUNS OUTTA CAPACITY THIS YEAR.
WE'RE ALREADY DOING A PROJECT BLOCK.
THE COTTONWOOD INTERCEPTOR IS AT 65% OF CAPACITY.
IT RUNS OUT OF CAPACITY NEXT YEAR.
JUST FOR FRAME OF REFERENCE, MOST OF THE STUFF THAT'S IN NORTH CENTRAL HU USES THAT LINE TO GET TO THE CENTRAL PLANT.
SO WE'RE GONNA HAVE TO FIGURE OUT SOME STUFF THERE.
UM, NUMBER FOUR, MEGASITE DEVELOPMENT.
NUMBER FIVE IS THE SOUTH WASTE WATER TREATMENT PLANT, WHICH WE'RE WORKING ON.
AND THEN NUMBER SIX IS THE CENTRAL, UH, WASTEWATER TREATMENT PLAN.
UM, AND I DON'T THINK I MENTIONED THIS WHEN I WAS TALKING THROUGH COMPLIANCE ISSUES, UH, BUT TCEQ SAYS THAT WHEN YOUR PLANT IS AT 75% OF YOUR PERMITTED CAPACITY, YOU ARE PLANNING FOR GROWTH, YOU ARE PLANNING FOR THE NEXT PHASE OF EXPANSION.
WHEN YOU'RE AT 90%, YOU'RE IN CONSTRUCTION.
AND SO, UM, AND YOU CAN SEE WE'RE ONLY AT 65% OF
[00:35:01]
THE HYDRAULIC CAPACITY AND WE'RE PROJECTING TO RUN OUT OF 20 OUT OF CAPACITY IN 2027.BUT THE, THE CENTRAL PLANT AT THE CENTRAL PLANT, BUT YOU, THE OTHER THING WE HAVE TO CONSIDER IS THE, THE, THE BIOLOGICAL, UM, EFFLUENT AS WELL.
SO, UM, AND, AND THE, THE OTHER PLANT RUNS OUT THIS YEAR.
WHAT OTHER PLANT? THE SOUTH PLANT? YEAH, THE SOUTH PLANT WOULD RUN OUT OF CAPACITY.
EVEN THE EXPANDED CAPACITY, WE'RE PROJECTING THAT THE SOUTH PLANT RUNS OUTTA CAPACITY THIS YEAR.
SO EVEN WITH THAT PAPER PROJECT THAT WE JUST DID WHERE WE GOT RERATED, WE STILL WOULDN'T HAVE ENOUGH BASED ON ALL THE GROWTH THAT IS HITTING US.
SO WHEN ARE WE HEARING THE PLAN FOR PATCH PACKAGE PLANS OR WHAT'S THE EXCUSE SCOOP? THE POOP PROJECTS.
BY THE TIME IT HITS AN AGENDA, GET THE MONEY.
SO LIKE, WHEN'S THAT COMING TO US? UH, I MEAN WE MOSTLY IT'S GONNA BE ABOUT WORKING WITH TCEQ AND, AND SHOWING THEM THE PROJECTED PLANS WHERE WE'RE AT AND GOING OFF OF RECOMMENDATIONS THAT THEY MAKE BECAUSE JUST BE, AGAIN, THIS IS, THIS IS SOMEWHAT PAPER AGAIN.
SO THERE'S A, A, THE PLANTS ARE ACTUALLY DESIGNED TO HANDLE PEAKING FACTORS WELL BEYOND THEIR PERMITTED CAPACITIES.
SO WE MAY BE ABLE TO CONTINUE TO WORK WITH TCQ AND NOT HAVE TO DO PACKAGE PLANTS, BUT THERE ARE SKID PLANTS THAT YOU CAN PULL IN TEMPORARY STRUCTURES THAT YOU PUT IN IF YOU ABSOLUTELY HAVE TO.
SO IT, IT'S, IT JUST REQUIRES ADDITIONAL COORDINATION WITH TCQ.
AND THAT'S PART OF THE REASON THAT THE WASTEWATER TREATMENT PLANT FROM THE SOUTH IS SO EXPENSIVE IS BECAUSE YOU, YOU MAY THINK THAT YOU'RE ONLY BUILDING A FOUR AND A HALF OR SIX MGD PLANT.
WHAT IS IT? SIX MG PLANT, WHICH YOU'RE ACTUALLY BUILDING IS LIKE AN 18 TO 24 MGD PLANT BECAUSE YOU HAVE TO BUILD IN AN, UH, A PEAKING FACTOR OF FOUR TIMES WHATEVER IT IS YOUR NORMAL TREATMENT IS.
SO THERE'S WAY MORE TREATMENT CAPACITY IN THAT PLANT THAN WHAT IS ON PAPER.
AND, AND THAT'S WHY IT'S IMPORTANT TO CONTINUE TO COORDINATE WITH TCK.
SO AGAIN, THIS IS FROM THE WASTEWATER MASTER PLAN.
UM, WE TRY TO KEEP THINGS AS COMPARABLE FOR YOU GUYS AS POSSIBLE.
SO YOU CAN SEE THE SAME YELLOW CIRCLE AND GREEN TRIANGLE SHOWING ON THE GROUND CONNECTIONS TODAY VERSUS ON THE GROUND PLUS THE APPROVED SCRS.
AND SO YOU CAN SEE THAT IN 2023, THE SOUTH PLANT HAS A LITTLE BIT MORE CAPACITY THAN THAT YELLOW CIRCLE, BUT NOT ENOUGH TO MEET THE GREEN TRIANGLE.
UM, AND THEN, UM, SAME THING FOR THE CENTRAL PLANT.
THE SCALES ARE DIFFERENT, BUT IT'S BECAUSE THEY EACH HAVE DIFFERENT TREATMENT CAPACITIES.
AND SO YOU CAN SEE THAT 2023, WE ARE AT THAT YELLOW CIRCLE RIGHT NOW.
I KNOW THAT THE PREVIOUS SLIDE SAID THAT WE WERE AT 62% CAPACITY, BUT I THINK WHEN YOU ACCOUNT FOR, UM, PEAKING FACTORS AND, AND BIOLOGICAL DEMANDS WE'RE, I KNOW THAT IN 2018 WHEN I WAS HERE, WE WERE TALKING ABOUT THE CENTRAL PLANT AND WE WERE SAYING WE NEED TO EXPAND IT.
AND THEN WE DID SOME PROJECTS, DID SOME LIFT STATIONS, REROUTED SOME FLOWS, DID A WHOLE DAISY CHAIN OF LIFT STATIONS ON THE NORTH SIDE OF TOWN TO TRY TO GET STUFF AROUND THE CENTRAL PLANT TO TRY TO BUY SOME MORE TIME BECAUSE NOBODY WANTED TO TAKE ON THE PROJECT OF EXPANDING THE PLAN.
AND I THINK WE'VE KICKED THE CAN ABOUT AS FAR DOWN THE ROAD AS WE CAN, MY PROFESSIONAL OPINION.
BUT, UM, ANYWAY, SO THESE ARE THE PROJECTS THAT, YOU KNOW, LIKE I SAID, WE'RE ALREADY DOING A PROJECT TO GIVE US SOME INTERIM CAPACITY ON THE ENCLAVE LIST STATION, BUT UH, SOMETHING'S GONNA HAVE TO BE DONE THERE EVENTUALLY.
MEGASITE, WE ALREADY TALKED ABOUT CENTRAL PLANT, WE TALKED ABOUT SOUTH, WE KNOW WHAT'S GOING ON.
GLENWOODS ALREADY BASICALLY GOING TO CONSTRUCTION AND THEY'RE GOING OUT FOR BIDDING SOON.
AND THEN COTTONWOOD IS STILL OUT THERE.
I APOLOGIZE, BUT I, I WANNA MAKE SURE THAT WE HAVE ENOUGH TIME TO GET THROUGH THIS SO YOU GUYS CAN TALK AND HAVE, ASK ANY QUESTIONS.
SO THIS IS YOUR WASTEWATER CURRENT WASTEWATER, UH, CIP AS APPROVED THIS SUMMER.
AND SAME, SAME BASIC SCENARIO.
I TOOK ALL OF THOSE PROJECTS COMPARED THEM TO THE MASTER PLAN, GIVE YOU GUYS A RUNDOWN OF WHICH PROJECT IN THE MASTER PLAN.
SO IF YOU WANT TO GO LOOK AT 'EM, YOU CAN SEE EXACTLY WHAT IT IS AND THEN WHERE THE MASTER PLAN SAYS THEY NEED TO HAPPEN.
SO THE PROBLEM HERE IS THAT YOU CAN SEE THE MASTER PLAN SAYS THEY ALL NEED TO HAPPEN IN THIS FIRST FIVE YEAR PERIOD.
UM, AND SO I GAVE YOU THE STATUS AND THEN I GAVE YOU MY RECOMMENDATIONS.
SO A LOT, YOU KNOW, THE FIRST FEW ARE NO CHANGE.
MEGASITE WASTEWATER PHASE TWO WW 8 20 23.
WE DELAYED IT WHEN WE WERE PUTTING THE CIP TOGETHER FOR YOUR CONSIDERATION.
MY RECOMMENDATION IS WE DON'T DO THAT PROJECT.
MY RECOMMENDATION IS WHEN PEOPLE COME IN TO DEVELOP THE MAS, THE MEGA SITE, THEY DO IT.
I MEAN, YOU GUYS CAN, YOU CAN OVER OBVIOUSLY OVERRIDE ME, BUT THAT'S MY RECOMMENDATION.
[00:40:01]
AND SO THEN THAT WOULD REMOVE IT FROM OUR BURDEN COMPLETELY AND PUT IT ON THE DEVELOPER.OKAY? UM, I'M SAYING THE SAME THING FOR THE LAKESIDE MUD FORCE MAIN AND LIFT STATION.
UM, JUST PUT IT ALL ON THE DEVELOPER.
NOW, THERE MAY BE SOME COST PARTICIPATION STUFF THAT HAS TO BE FIGURED OUT IF WE TELL 'EM THEY HAVE TO MAKE IT BIGGER THAN WHAT THEY WANTED TO MAKE IT, BUT WHAT THEY NEEDED TO MAKE IT.
YEAH, BUT THEY NEEDED TO MAKE IT.
BUT, UM, THAT'S STILL GONNA SAVE US A, A SIGNIFICANT AMOUNT OF MONEY.
UM, AND SO THEN YOU CAN SEE I'M SAYING SOME OF THESE WE PUSH OUT TO FUTURE CS AND SOME OF THEM WE DELAY TO THE VERY END OF THE CIP.
AND SO, UM, THIS DROPS YOUR, UM, TOTAL WASTEWATER NUMBER DOWN.
AND THIS ONE'S A LITTLE BIT CONFUSING, UH, BECAUSE IT, IT DROPS YOUR TOTAL WASTEWATER CIP DOWN TO $165 MILLION.
THE CAVEAT THERE IS, AND I'VE GOT ANN HERE SO SHE CAN BACK ME UP.
THE CAVEAT THERE IS THAT'S IF WE DO NOT DO CMAR ON THE SOUTH PLANT, RIGHT? IF WE DO SEAMAR ON THE SOUTH PLANT, THEN YOUR WASTEWATER CIP GOES TO 255 MILLION.
AND SO, UH, THAT'S JUST FOR NEXT YEAR.
SO THE REASON THE REASONING THERE IS THAT, UM, THAT IF YOU DO CMAR, WE HAVE TO HAVE THE FULL 180 MILLION RIGHT NOW.
SO WE'D HAVE TO GO BOND FOR THAT RIGHT NOW, EVEN THOUGH A LOT OF THE CONSTRUCTION WOULD HAPPEN NEXT YEAR.
WHEREAS IF YOU DID THE TYPICAL TYPE OF DESIGN BID BUILD, UH, CONTRACT, THEN WE COULD AWARD $90 MILLION THIS YEAR AT $90 MILLION NEXT YEAR.
THAT'S THE WAY WE HAD IT PROJECTED ORIGINALLY IN CIP WHEN YOU GUYS APPROVED IT.
AND SO, BUT THEN, THEN WE'RE THEN AFTER THAT WE'RE DOING CMAR AND SO WE HAVE TO HAVE THE FULL 180 MILLION UPFRONT, ASSUMING THAT IT COMES IN AT 180 MILLION.
I'M WORKING WITH GARVER AND WITH ARCHER WESTERN WHO'S OUR CONTRACTOR TO TRY TO SQUEEZE THOSE NUMBERS DOWN.
AND SO FAR, EVERY TIME WE'VE GOT A NEW ESTIMATE, WE HAVE SQUEEZED THE NUMBER DOWN AND REDUCED IT.
BUT AS IT AS THE CIP SITS TODAY PROJECTING $180 MILLION PROJECT AND WE, SO WE BROKE IT 90 MILLION IN 24 AND 90 MILLION IN 20.
SO THAT'S WHY THE WASTEWATER ISS A LITTLE BIT CONFUSING, BUT YOU CAN SEE BASICALLY IT'S A REDUCTION.
MY RECOMMENDATIONS REDUCES YOUR TOTAL CIP BY 23 PROJECTS AND $152 MILLION AND SOME CHANGE OVER THE NEXT FIVE YEARS.
SO I HEARD, I HEARD THE QUESTION ASKED IN MY EAR OVER HERE, BUT CMAR IS CONSTRUCTION MANAGER AT RISK.
IT'S BASICALLY A GUARANTEED MAXIMUM PRODUCT BID AND THAT'S WHY YOU HAVE TO HAVE ALL THE MONEY AT ONE TIME.
AND SO IF WE DON'T DO CMAR, THE RISK IS IF THE COST IS HIGHER, THERE'S NO
ALRIGHT, SO WHAT'S IT COST? $864 MILLION TO THE TAXPAYER.
IS THAT 20 BUCKS MORE A MONTH THAN THEIR WATER BILL? IS IT THEIR TAXES GO UP 50 BUCKS A YEAR, EVERY 10 MILLION.
WELL, SO, BUT, BUT LET ME, LET ME JUST POINT OUT ONE THING.
THE 864 MILLION IS YOUR TOTAL CIP.
AND SO THAT'S FOR YOUR BUILDINGS, WHICH THERE ARE FOUR BUILDINGS IN YOUR CIP RIGHT NOW, THE LIBRARY, THE POLICE STATION, THE PUBLIC WORKS FACILITY.
AND LET, LET ME TACKLE THIS A DIFFERENT WAY.
THE, THE SOURCES OF THAT, OF MAKING THE DEBT SERVICE PAYMENT ON THAT WOULD BE COMING FROM MULTIPLE BUCKETS, TAXES, POTENTIALLY WATER RATES, UTILITY AND POSSIBILITY AND WASTEWATER RATES, POSSIBILITY.
SO IT'S GONNA BE COMING FROM THREE DIFFERENT BUCKETS, BUT WE DIDN'T, WE'RE NOT CA WE'RE NOT RUNNING CALCULATIONS ON, ON THOSE THINGS UNTIL WE GET A BETTER IDEA OF WHAT COUNCIL FEELS ABOUT WHERE WE'RE AT ON THE CIP WHAT, WHAT FEEDBACK Y'ALL HAVE.
AND WE DIDN'T WANT Y'ALL TO HAVE TO MAKE DECISIONS TONIGHT, IT'S JUST ABOUT GETTING INFORMATION IN FRONT OF YOU.
SO YOU'RE ASKING US TO DECIDE, WE DON'T KNOW THE EFFECT, THE IMPACT ON THE PEOPLE WE REPRESENT.
IF YOU GUYS ARE ASKING US WHAT SHOULD WE TELL YOU TO DO, BUT WE CAN TELL YOU, GO AHEAD AND MOVE DOWN THAT ROAD AND THEN YOU'RE GONNA COME BACK A YEAR AND GO, WELL, THE REASON WE HAD TO DOUBLE PEOPLE'S TAXES IS BECAUSE YOU GUYS SAID NO.
THAT'S NOT THE, THAT'S NOT THE WAY THAT THIS, THAT THE WAY THAT THIS PROCESS IS MEANT TO WORK, THE WAY THAT THIS PROCESS IS MEANT TO WORK IS FOR Y'ALL.
I, I'LL SWITCH THE ANALOGY A LITTLE BIT FOR Y'ALL TO SAY.
WE WANT YOU TO GO LOOK FOR A THREE BEDROOM, TWO BATH HOUSE.
OKAY? THEN WE GO LOOK FOR THE THREE BEDROOM, TWO BATH HOUSE AND WE COME BACK AND LIKE, HERE'S THE PRICING THAT WE FOUND ON THREE BEDROOM, TWO BATH HOUSE.
AND YOU'RE LIKE, THAT'S NOT WITHIN OUR BUDGETS FOR VARIOUS DIFFERENT REASONS.
WE NEED YOU TO CUT THIS OUT, THIS OUT, THIS OUT, THIS OUT.
HOW ARE YOU GONNA DO IT? AND THINGS CAN GET DOWN.
SO WE'RE JUST TRYING TO GET A PLACE TO START.
THIS ISN'T THE DEFINITIVE RIGHT.
ONCE COUNSEL SAYS, AND THAT'S ONCE YOU VOTE ON A NEW CIP, THAT IS
[00:45:01]
IN MY MIND THE DIRECTION THE STAFF TO GO FIGURE OUT HOW TO FUND EVERYTHING.SO WE'RE NOT TO THAT POINT YET, BUT WHAT'S THE COST? I'M ASKING FOR A $300,000 HOUSE.
YOU AS A REALTOR, LIKE WHAT'S YOUR BUDGET? DO YOU HAVE A PRE-APPROVAL LETTER? THERE'S A LOT OF QUESTIONS THAT GO IN.
YOU JUST DON'T GO OUT LOOKING FOR HOUSES AND ME, HEY, I CAN'T AFFORD IT.
SO I'M TRYING TO FIGURE OUT HOW TO SPEAK IT FOR MYSELF.
IT'S 50 BUCKS MORE A YEAR IN TAXES.
IF YOU SAY GUYS IN FIVE YEARS, 1700 A MONTH OR 17 A YEAR GOES TO LIKE 3,500 A YEAR.
I'M GONNA SAY MORATORIUM IS THE WAY TO GO IN MY MIND.
AND I ALSO DON'T KNOW WATER BECAUSE IT'S WATER GOING UP A HUNDRED DOLLARS A MONTH, 1 50, 180, 30 BUCKS.
I DON'T KNOW WHAT TO TELL YOU GUYS UNLESS I KNOW WHAT IT'S GONNA BE WITHOUT NUMBERS.
SO RIGHT NOW WE'RE TALKING WATER, WASTE WATER, RIGHT? YES.
SO, SO WE COULD SAY THAT THAT'S FOR FIVE YEARS, RIGHT? 23 TO 28.
BECAUSE YEARS ALREADY THAT'S WATER AND WASTEWATER.
SO WE COULD SAY RIGHT NOW, SAY 700 MILLION IS OUR, IS WHERE WE'RE AT IS OUR NUMBER.
SO THAT'S WHY WE WENT BACK TO FROM UTILITY DEBT'S LIKE 120 MILLION.
SO IN FIVE YEARS WE'RE GONNA GO FROM 120 MILLION IN DEBT TO 750 MILLION BASED ON YOUR CURRENT CIP.
YES, SOMEONE'S WATER IS GOING UP IN PRICE.
I JUST NEED TO KNOW HOW MUCH IS GOING UP BECAUSE THE ANSWER CHANGES AND I GET ACCUSED OF MISINFORMATION.
BUT YOU CAN'T CHARGE X AMOUNT OF MONEY AT ONE 20 DEBT SERVICE, POP IT BY 600 MILLION IN FIVE YEARS AND GO, IT'S GONNA BE MINUSCULE, BARELY EVEN NOTICE YOUR BILL WENT UP TO ME.
IT APPEARS IT'S GONNA BE EXTREMELY DRASTIC AND THE QUICKER WE TELL PEOPLE, HOLD ON TYPE, IT'LL BE BETTER IN SIX YEARS.
BUT THE NEXT FIVE IS GONNA BE ROUGH.
I THINK I'VE TOLD JAMES THIS BEFORE.
I THINK IT IS ON US TO EDUCATE THE PUBLIC THAT HEY, IF YOU CAN'T AFFORD THIS, NOW MAY BE THE TIME TO MOVE.
IT'S HAPPENING TO TAYLOR, IT'S HAPPENING HERE.
BUT WE JUST TELL PEOPLE LIKE, HEY, WE'RE WORKING ON IT.
WE GOT SOME THINGS IN THE PIPELINE, DON'T WORRY ABOUT IT IN FIVE YEARS IT'S GONNA BE A PROBLEM.
SO YOU SAID THERE'S 50 SER REQUESTS, YOU KNOW, IN THE PIPELINE.
25 GOT TAKEN CARE OF LAST YEAR.
SO THERE'S 25 KIND OF, THERE'S ON DECK WE DID 50 AND 23.
I'VE GOT ONE IN MY EMAIL RIGHT NOW.
THAT I HAVEN'T PRESENTED TO ANYBODY YET.
UM, YOU GUYS HAVE ALREADY APPROVED 20 OF THOSE 50.
SO YOU HAVE 30 MORE THAT ARE OUT THERE JUST KIND OF FLOATING RIGHT NOW.
THAT, THAT ARE COMING TO LIKE OUR DESK.
SO POTENTIALLY 'CAUSE DEVELOPERS CAN ASK QUESTIONS AND NEVER FOLLOW THROUGH.
THEN THEY CAN PULL YEAH, PULL BACK.
UM, AND THE OTHER THING IS, IS THAT NOT ALL THOSE LUS GET TAKEN DOWN AT ONE TIME EITHER.
IF IT'S AN APARTMENT COMPLEX, CHANCES ARE THE LUS GET TAKEN DOWN AT ONE TIME.
IF IT'S A HOUSING DEVELOPMENT OF 500 OR 600 OR 700 UNITS THAT THEY'RE, THEY USUALLY HAVE A TAKE DOWN SCHEDULE OF MAYBE LIKE, YOU KNOW, A HUNDRED A YEAR OR SOMETHING, YOU KNOW.
SO IT REALLY DEPENDS ON WHO IT IS.
SO JUST BECAUSE THE UUVS ARE APPROVED DOESN'T NECESSARILY MEAN THEY'RE ALL GONNA HIT, EVEN, EVEN IF COUNCIL HAS ALREADY APPROVED THEM, YOU MIGHT BE LOOKING AT THE TWO OR THREE YEAR LAG TIME BEFORE ANY OF THOSE LUS GET
AND THAT'S ASSUMING THAT THE SALES OF HOUSES AND THOSE SORTS OF THINGS CONTINUE ON AT THE SAME RATE.
SO PRICING AND EXPENSE AND THOSE SORTS OF THINGS ARE OBVIOUSLY ANOTHER COMPONENT OF THIS.
SO THAT'S WHY WE'RE SAYING THIS IS NOT A ONE CONVERSATION, IT'S A MULTIPLE PRONGED CONVERSATION.
SO WE HAVE TO START HERE THEN, YOU KNOW, ASSUMING THAT COUNCIL DOESN'T HAVE ANY REASON FOR US TO DEVIATE FROM WHAT MATT HAS PROPOSED, THEN WE GO PRICE, THEN WE COME BACK WITH THE SAME, YOU KNOW, PRICING OFF OF THE SAME UH, ASSUMPTIONS, RIGHT? AND THEN COUNCIL CAN SAY, NO, THAT'S NOT GONNA WORK.
YOU KNOW, DO THIS, THAT OR THE OTHER.
AND THEN WE KEEP HONING IT DOWN UNTIL WE GET TO WHAT THE PLAN IS.
'CAUSE I NEED TO ISSUE DEBT FOR PROJECTS SO WE CAN GET THEM GOING THIS YEAR.
I DON'T HAVE, I DON'T HAVE MONEY IN THE UTILITY TO GO START THESE PROJECTS.
SO UNTIL I GET COUNSEL TO A POINT OF FEELING CONFIDENT OF KNOWING HOW MUCH YOU'RE, YOU'RE WILLING TO ISSUE DEBT FOR, FOR WATER AND WASTEWATER, WE'RE AT A STANDSTILL ON DOING ANY NEW PROJECTS.
SO, AND HOW DO WE TELL YOU WHAT TO ISSUE UNTIL YOU TELL US WHAT IT'S COST TO THE CONSUMER TO ISSUE IT? THAT'S THE NEXT COMPONENT OF THIS.
NO, BUT YOU WANT US TO MAKE DECISIONS TONIGHT? NO, NO.
JUST WHAT MATT WANTS YOU DO IS MATT WANTS YOU TO LOOK AT WHAT HIS RECOMMENDATIONS AND THINK ABOUT THESE TWO IDEAS WHILE YOU'RE LOOKING AT HIS RECOMMENDATIONS AND GIVE YOUR FEEDBACK BASED ON THESE TWO QUESTIONS AND HIS RECOMMENDATIONS.
AND SO WOULD WE CONSIDER RESTRICTION ON GROWTH WITHOUT KNOWING THE COST OF THE GROWTH? HOW DO YOU DETERMINE IF YOU'D RESTRICT IT, DO A, I MAY SAY I WANNA DO A MORATORIUM AND YOU GUYS WOULD COME BACK HOME, MAYOR
[00:50:01]
SAID, MORATORIUM 50 BUCKS MORE A MONTH.OR YOU COULD SAY IT'S $300 A MONTH IN WATER AND EVERYBODY HERE'S GOING, THEN WE'RE DONE DEVELOPING UNTIL WE GET CAUGHT UP.
SO THOSE INITIAL QUESTIONS THAT STARTED THE CONVERSATION, THOSE ARE THE QUESTIONS THAT, THAT WE'RE HOPING TO GET YOU TO BE ABLE TO ANSWER BY THE TIME THAT WE'RE DONE WITH THIS.
BECAUSE ULTIMATELY WE NEED TO KNOW HOW MUCH DEBT WE NEED TO ISSUE AND WHEN, WHAT THE, WHAT THE IMPACT IS GONNA BE TO THE TAXPAYER, THE RIGHT PAYER FOR WATER, THE RATE PAYER FOR WASTEWATER.
AND AT WHAT POINT, IF ANY, IS COUNSEL GOING TO SAY, DO NOT APPROVE ANY MORE SCRS.
SO THE QUESTIONS TO ANSWER WERE NOT TONIGHT.
YOU'RE WANTING US TO COME OUT HERE AND I'M LIKE, NO SIR.
AND MR. MAYOR, TO YOUR POINT, I HAVE ALREADY TALKED TO ANNE AND ALBERTA AND SAID THIS QUESTION WAY
I MEAN, THEY CAN TELL YOU, I, I WENT TO THEIR OFFICE AND SAID THIS QUESTION IS GONNA COME.
WE NEED TO KNOW IF THEY SAY, YEAH, LET'S DO $150 MILLION REDUCTION, HOW DOES THAT CHANGE THE UTILITY RATES? HOW DOES THE $600 MILLION OVER THE NEXT FIVE I'VE, WE HAD THAT CONVERSATION AND SO THEY ALREADY ARE WORKING ON THAT.
BUT LIKE, I DIDN'T HAVE ALL OF THIS STUFF TO THEM IN, YOU KNOW, PLENTY OF BECAUSE OF THE HOLIDAYS AND EVERYTHING.
WELL, THAT WASN'T YOUR DIRECTION.
YOUR DIRECTION WAS TO START HERE.
BECAUSE THIS IS A COMPLICATED, THERE'S A LOT OF MOVING PARTS AND IT'S COMPLICATED AND WE ONLY HAVE AN HOUR, 45 MINUTES TO AN HOUR.
WE KNOW WE'RE NOT GONNA GET THROUGH ALL THE CONVERSATION, BUT WE NEED PEOPLE TO START THINK SO.
SO BETWEEN NOW AND THE NEXT PRESENTATION, I WOULD HOPE THAT YOUR MINDS WOULD BE PROBING ALL THE POTENTIAL PROBLEMS, PITFALLS, ISSUES, CONCERNS, THINGS THAT, THAT MAYBE MATT RECOMMENDED GET MOVED, THAT YOU'RE LIKE, OH, WAIT A MINUTE, THAT'S GONNA CAUSE A HUGE PROBLEM.
OR SOMETHING THAT HE IS LIKE, HEY, WE OUGHT TO DO, AND YOU'RE LIKE, MAN, I REALLY DON'T THINK WE OUGHT TO DO THAT.
THAT'S THE STUFF I WANT Y'ALL THINKING ABOUT.
SO BY THE TIME WE GET TO THE NEXT CONVERSATION OF, OKAY, NOW HOW MUCH IS ALL THIS STUFF GONNA COST IF WE DO IT LIKE WE'VE PROPOSED, Y'ALL HAVE AN OPPORTUNITY TO SAY, NOW WE THINK THIS PROJECT NEEDS TO MOVE OUT, OR WE THINK YOU MADE A MISTAKE BY MOVING THAT PROJECT OUT, IT NEEDS TO BE IN, THAT'S, THAT'S WHAT WE'RE HOPING TO GET TO.
AND THEN HAVING A DOLLAR AMOUNT FOR THIS YEAR.
SO THEN WE CAN COME TO COUNCIL, AND COUNCIL CAN AUTHORIZE A BOND ISSUANCE FOR US TO BE ABLE TO, OR CO TO GO DO THE, THE WATER WASTEWATER PROJECTS.
WELL, ONE THING WE NEED TO DO IS BE STRATEGIC IN WHAT WE'RE APPROVING ON THE WATER SIDE BECAUSE A THOUSAND FOR A DATA CENTER IS A MUCH HIGHER PRIORITY FOR ME TO APPROVE THAN A THOUSAND FOR APARTMENTS BECAUSE THAT'S GONNA GIVE US TAX REVENUE THAT THE APARTMENTS ARE NOT GOING TO AND IT'S NOT GONNA PUT A DEMAND ON CITY SERVICES.
SO THAT'S GONNA BE A NET BENEFIT TO US AND ALLOW US TO GET EVERYTHING ELSE DONE THAT MUCH EASIER.
SO WE REALLY NEED TO BE CAREFUL WITH THAT.
YEAH, AND AND, AND I, ASHLEY AND I, I THOUGHT SHE WAS, SHE, SHE AND I HAVE TALKED A LOT ABOUT THAT AND I'M LIKE, IF YOU KNOW THE BURDEN FROM, YOU KNOW, AND THERE'S THE WHOLE SMART CITIES MOVEMENT AND ALL THAT STUFF, I DON'T KNOW IF YOU GUYS ARE DOING IT.
THE BURDEN FROM A RESIDENTIAL UNIT ON THE CITY IS A LOT MORE AND THE PAYBACK IS A LOT LESS THAN SOMETHING LIKE A DATA CENTER.
THE BURDEN IS A LOT LESS AND THE PAYBACK IS A LOT MORE.
AND SO I SUGGESTED, YOU KNOW, SHE AND I HAVE TALKED AND BRAINSTORMED STUFF AND I'M LIKE, IF THAT'S SOMETHING THAT COUNCIL WANTS TO CONSIDER IS SAYING WE'RE GONNA PRIORITIZE THIS TYPE OF GROWTH OVER THAT TYPE OF GROWTH.
YOU KNOW, THAT'S SOMETHING THAT'S WITHIN YOUR PREROGATIVE AND THAT'S PART OF THE, ONE OF THE QUESTIONS OF HOW, YOU KNOW, AT WHAT POINT DO WE WANT TO START RESTRICTING GROWTH OR SAY, OKAY, WE'RE NOT GONNA CONSIDER THIS ANYMORE.
WE WANT A MORATORIUM ON THIS TYPE OF THING.
THOSE ARE, THOSE ARE THE THINGS THAT, THAT I'M WANTING YOU GUYS TO THINK ABOUT AND GIVE US GUIDANCE ON SO THAT AS WE GO THROUGH THIS CIP PROCESS AND START REFINING AND TRYING TO COME UP WITH THE MOST BENEFICIAL PACKAGE FOR THE CITY, THAT IT'S IN LINE WITH WHAT YOUR ULTIMATE GROWTH GOALS ARE.
BECAUSE DO WE, DO WE WANT IT TO BE A BETTER COMMUNITY OR, OR DO WE WANNA BE SOMETHING ELSE? WELL, I THINK THERE'S ALSO A DIFFERENCE IN SAYING NO ON WATER AND SAY NO ON WASTEWATER BECAUSE WE SAY NO ON WATER, THEY CAN'T GET WATER ANYWHERE ELSE.
IT DOESN'T, THIS WE SAY NO ON WASTE WATER, THEY'RE JUST GOING TO TRY TO GET A PACKAGE PLANT BUILT OR WHATEVER.
AND MOVE FORWARD AND YOU KNOW, WE DON'T HAVE AS MUCH CONTROL IN THAT ARENA.
SO, AND THEN IT'S A QUESTION OF IS IT WORTH IT TO US TO APPROVE THAT AND HAVE TO BUILD IT, OR IS IT OKAY WITH US THAT WE'RE GONNA LET THEM DO PACKAGE PLANTS AND THE PACKAGE PLANTS IN PLACE, WHICH I DON'T, IT DOESN'T SOUND GOOD TO ME, BUT RIGHT.
BUT THERE'S A FINANCIAL ASPECT TO THAT TOO THAT WE WON'T DO.
SO YEAH, I APPRECIATE Y'ALL LIKE, YOU KNOW, MANAGING AND MAINTAINING THE BALANCE OF THE WATER SITUATION, RIGHT? BECAUSE I FEEL LIKE, YOU KNOW, JUST FROM WHAT YOU'VE SAID, THAT Y'ALL CAN MANAGE IT PRETTY WELL EVEN THOUGH WE CAN'T GET INTO LIKE DIRE SITUATIONS, BUT Y'ALL ARE, Y'ALL MONITOR LIKE CERTAIN ASPECTS OF IT, LIKE THE WHOLE SCOPE OF THE SYSTEM TO WHERE Y'ALL KEEP IT STABLE AND HOPEFULLY THAT'S TRUE RIGHT? FROM JUST KIND OF WHAT THE INFORMATION YOU GAVE US.
SO I KIND OF FEEL BETTER ABOUT THAT, THAT SITUATION THEN OBVIOUSLY IN THE
[00:55:01]
FUTURE WITH MORE ONCOMING, YOU KNOW, MORE STUFF COMING ONLINE, MORE WATER COMING ONLINE IN THE NEXT FOUR YEARS, RIGHT? FOUR TO FIVE YEARS, OR THREE TO FIVE YEARS, THEN THAT WOULD OBVIOUSLY STABILIZE IT EVEN MORE, RIGHT? SO IT'S NOT SO UP AND DOWN.SO I FEEL, UH, BETTER ABOUT THE, OUR WATER SITUATION.
UM, AND THEN WASTEWATER OBVIOUSLY IT'S IN DIRE STRAIT, SO IT'S LIKE THAT'S KIND OF ONE THAT'S LIKE MAYBE BE AGGRESSIVE TOWARDS, SO, BUT AS WE GET MOVING THROUGH THIS PROCESS, WE'LL NO MORE SO NOT, NOT TO BE TOO, HOPEFULLY NOT TOO NITPICKING, BUT WE DON'T ACTUALLY REMOVE THE ONES THAT WE WANT DEVELOPERS TO PAY FOR FROM THE CIP.
WE JUST CHANGE THE FUNDING SOURCE FROM CIP BECAUSE THEY STILL NEED TO BE IN THE CIP FOR TELE DEVELOPER.
YOU GOTTA PAY FOR THAT, RIGHT? I THINK THAT'S, UM, I I THINK LOGISTICALLY THAT'S CORRECT.
YOU EITHER MOVE IT OUT OF YOUR FIVE-YEAR WINDOW OUTSIDE OF THAT AND INTERNALLY YOU KNOW THAT IT'S MORE, AND ON THE MEGA SITE, IT MIGHT NOT DIRECTLY BE THE DEVELOPER, IT COULD BE THE T FUNDING THE PROJECT.
I MEAN MY, I I WAS TRYING TO KEEP THE SLIDES AS SIMPLE AS I COULD.
I'M JUST SAYING THERE'S A LOT OF MOVING PIECES.
WHEN SOMEBODY COMES IN TO BUILD SOMETHING IN THE MEGA SITE, THEY SHOULD PUT IN THEIR RESPECTIVE INFRASTRUCTURE RATHER THAN US GOING AND SAYING, WE'RE GONNA PUT IN ALL THIS INFRASTRUCTURE AND THEN HOPE THAT SOMEBODY COMES ALONG AND USES IT.
THAT THAT WAS, THAT'S BASICALLY MY GOAL.
I'M SAYING THAT WAS A HUNDRED ACRES SLOPE TO LAND OUT THERE,
NOW WE'RE SAYING EVERYBODY SHOULD GO DO ALL THIS, BUT WE'VE ALREADY SOLD ALL THE LAND AND PUT IT ON.
IT WASN'T HERE WHEN YOU GUYS STARTED.
WELL, WE'VE DIALED THAT, WE'VE DIALED A LOT OF THE INFRASTRUCTURE BACK THERE TO JUST THE, THE, THE, THE MAIN TRANSMISSION LINE, THE MAIN COLLECTION LINE.
SO WE'RE NOT, WE'RE NOT, WE'RE NOT ENGAGED CURRENTLY THAT I'M AWARE OF IN ANY OF THE INTERNAL, UH, IMPROVEMENT.
SO, AND YOU HAVE TO HAVE THOSE, THOSE MAIN LINES ONE WAY OR THE OTHER.
SO, WELL, IF THOSE PROJECTS ARE REAL AND MOVING AHEAD, THEN IT'S EASIER FOR THE TURS TO BE ABLE TO
WE NEED TO, WE NEED TO STAY ON TOP OF THAT.
SO RIGHT UNTIL YOU UP THE ROAD CONTRACT SLIDE ONE DAY,
[3.2. Discussion and possible action related to Work Session topics]
AND BEFORE WE ADJOURN ANYTHING ELSE? THANKS FOR THIS, MATT.SO WHAT'S OUR, WHAT'S OUR NEXT ONE OF THIS? LIKE, WHAT'S LIKE STEP TWO STEP TWO'S GONNA, WE'RE GONNA BE FOCUSED ON UTILITIES.
SO THE NEXT STEP'S GONNA BE TO COME BACK WITH THE NEW NUMBERS AND THEN HOW THOSE DIFFERENT THINGS WOULD BE PAID FOR.
BECAUSE THE, THE WATER PROJECTS DROPPED SIGNIFICANTLY MUCH, AND THAT'S A SMALLER GROUP OF PEOPLE AS A SMALLER, UH, SUBSET OF RATE PAYERS, UHHUH, THEN THE WASTEWATER, THE WASTEWATER DIDN'T DROP AS MUCH, BUT YOU HAVE MORE PEOPLE TO BE ABLE TO PAY.
SO EFFECTIVELY WHAT WE'LL HAVE TO DO IS PROJECT OUT.
SO IF WE'RE PROJECTING THAT NUMBER OF LUB GROWTH, WE'RE GONNA USE THAT, THOSE PROJECTIONS ON WHAT IT DOES TO THE RATES.
SO CURRENT CURRENT RATE PAYERS HAVE TO PAY THIS THIS YEAR WITH THE EXPECTATION OF NEXT YEAR THAT 10 BECOMES EIGHT OR EIGHT BECOMES FIVE BUCKS A MONTH OR WHATEVER, YOU KNOW.
SO THAT'S THE NEXT PROJECTION IS AFFORDABILITY.
AND THEN FOR Y'ALL TO SAY YOU MADE A MISTAKE OR WE DON'T, WE THINK THAT IT'S A, A MAYBE NOT A MISTAKE, BUT UH, WE THINK THIS SHOULD BE A DIFFERENT PRIORITY THAN THE WAY YOU PRIORITIZED IT.
AND MAYBE SOME OF THOSE NUMBERS HAVE TO SHIFT AROUND AND THEN WE COME BACK ONE LAST TIME AND SAY, OKAY, HERE, HERE'S WHAT IT IS, AND Y'ALL SAY YAY OR NAY ON AFFORDABILITY.
YOU'RE GOING FORWARD ASSUMING THAT WE'RE GOOD WITH MATT'S PLAN.
WELL YEAH, YOU HAVEN'T HAD AN OPPORTUNITY TO SAY THAT YOU'RE NOT WITH IT, BUT YOU, HOPEFULLY YOU UNDERSTAND HIS METHODOLOGY.
ARE YOU GONNA GET OUR FEEDBACK? ARE YOU GONNA SEND US THIS, THIS SLIDE DECK AND I'LL, I'LL SEND SO WE CAN EVERYBODY, UM, TO YOUR, TO YOUR QUESTION ABOUT TIMING, THIS NEEDS TO HAPPEN QUICKLY.
'CAUSE AS, AS JAMES ALREADY INDICATED, WE'RE GONNA START RUNNING INTO A POINT WHERE THESE PROJECTS CAN'T PROGRESS BECAUSE WE DON'T HAVE MONEY.
AND SO WE NEED TO ISSUE THE BONDS QUICKLY.
WAS THAT PAID 60 OR 90 DAYS? WHAT IS IT? UH, I DON'T, WHAT'S THE TAX? WHAT'S THE GENERAL GET THE BOND? UM, SO IF WE'RE GONNA PAY FOR THE BOND WITH UTILITY FUNDS, OH, UM, IT'S GENERALLY ABOUT A 45 DAY PROCESS.
UH, IF YOU'RE GONNA ISSUE IT WITH TAX SUPPORTED DOLLARS, YOU WOULD HAVE TO GO OUT FOR VOTER APPROVAL.
AND THAT'S GONNA TAKE, HOWEVER, HOWEVER LONG IT IS, TILL THE NEXT ELECTION.
THERE'S THE POSSIBILITY OF DOING A CO WITHOUT GOING TO VOTER AUTHORITY, BUT YEAH.
SO ANYWAY, BUT THOSE ARE THE DIFFERENT OPTIONS THAT WE HAVE TO PUT ON THE TABLE.
SO Y'ALL HAVE A KIND OF AN IDEA OF, OF WHAT THE, OF, OF HOW YOU COULD POTENTIALLY PAY FOR THESE AND WHAT THE IMPACT IS TO THE RATE PAYERS.
SO THANK WHICH YOUR GROWTH WAS GOOD.
YOUR RATES WOULD GO DOWN OVER TIME.
BUT IF YOUR RATES DOUBLE, THEN AT SOME POINT, MAYBE NOT THIS COUNCIL, MAYBE LAST COUNCIL, MAYBE ALL OF 'EM COMBINED WE'RE NOT MAKING GOOD DECISIONS BECAUSE GOOD DECISIONS WOULD CAUSE A STEADY RATE TO STEADY GO UP OR STEADY GO
[01:00:01]
DOWN AND NOT TO HAVE GIANT SHOCKS.AND, AND I DON'T DISAGREE WITH YOU MAYOR, AND I THINK AT LEAST MY IN INTERPRETATION OF, OF WHAT I'VE LEARNED IN THE TIME THAT I'VE BEEN HERE IS THAT EVERYONE, AT LEAST THAT I'VE TALKED TO ON COUNCIL IS, HAS BEEN AWARE THAT THIS IS, THIS ISSUE'S OUT THERE.
WE'VE BEEN TALKING ABOUT IT FOR THE LAST YEAR.
WE STARTED WITH THE MASTER PLAN SO WE KNEW EXACT, SO WE COULD FIGURE OUT HOW BAD THE PROBLEM REALLY WAS.
SO WE, WE'VE BEEN SEEING THIS COMING, BUT NOW WE HAVE THE DATA AND NOW WE GOTTA START MAKING THOSE TOUGH DECISIONS.
I HOPE YOU GUYS THREW ME WRONG.
I HOPE I TELL EVERYBODY RATES ARE GOING UP 150 A MONTH AND YOU GUYS FIND A WAY TO MAKE IT 80 A MONTH.
'CAUSE I'D LOVE, LOVE TO BE A LIAR AND EVERYBODY HAVE MORE MONEY IN THEIR POCKET THAN YES SIR, THAN WHAT'S THE BEST CASE SCENARIO, ANN? NO, WE DON'T WANNA THROW OUT NUMBERS.