* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:03] ALL RIGHT. [ CITY OF BAYTOWN NOTICE OF MEETING BAYTOWN FINANCE COMMITTEE THURSDAY, AUGUST 22, 2024 4:00 P.M. BAYTOWN CONFERENCE ROOM, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM ] I WILL CALL TO ORDER THIS MEETING OF THE BAYTOWN FINANCE COMMITTEE. WE DO HAVE A QUORUM. IT'S THURSDAY, AUGUST 22ND, 2024. IT IS FOR UH, THREE, AND WE'RE IN THE BAYTOWN CONFERENCE ROOM AT CITY HALL. UH, THE FIRST ITEM ON THE AGENDA IS CITIZEN COMMENTS THAT WE HAVE. ANYONE SIGNED UP? NO. ALRIGHT. GO TO ITEM TWO [a. Consider the approval of minutes for the Finance Committee meeting held May 23, 2024.] A. CONSIDER THE APPROVAL OF MINUTES FOR THE FINANCE COMMITTEE MEETING HELD MAY 23RD, 2024. MOVE APPROVAL. OKAY. ALRIGHT. MOTION SECOND. ALL IN FAVOR, PLEASE SAY AYE. AYE. OPPOSED? MOTION CARRIES. I WILL [a. Receive the City of Baytown's Quarterly Financial and Investment Reports for the Quarter Ending June 30, 2024.] GO TO ITEM THREE A. RECEIVE THE CITY OF BAY TOWN'S QUARTERLY FINANCIAL AND INVESTMENT REPORTS FOR THE QUARTER ENDING JUNE 30TH, 2020 FOURTH. OKAY. SO I'LL TRY TO KEEP IT BRIEF. UM, OUR GENERAL FUND HAS A STRONG FUND BALANCE OF 49 MILLION. REVENUES ARE AT 93% OF THE BUDGET EXPENDITURES AT 72%. UM, REMEMBER, SALES TAX ARE STATED AS OF APRIL, 2024 DUE TO THE TWO MONTH DELAY. UM, THE HOTEL OCCUPANCY TAX REVENUES ARE AT 54%. UM, AND IT HAS A POSITIVE FUND BALANCE DUE TO EXPENDITURES ARE ONLY AT 744. UM, THE WATER AND SEWER IS ON TRACK AT 40.9 MILLION IN REVENUE, WHICH IS 75% OF THE BUDGET. WE HAVE 40 MILLION IN EXPENDITURES, WHICH IS 71% RESULTING IN THE STRONG FUND BALANCE OF 11.4 MILLION ON SANITATION. NEG STILL HAS A NEGATIVE WORKING CAPITAL OF 2.9 MILLION. REVENUES AT 4.9 IN EXPENDITURES AT 5.7. STORMWATER IS A POSITIVE WORKING CAPITAL OF 1.7, DESPITE THE 3.5 MILLION IN EXPENDITURES THAT IS EXCEEDING THE REVENUE. BUT THAT IS DUE TO, UM, THE DEBT ISSUANCE THAT WE RECEIVED. REMEMBER WE, UH, REIMBURSED, UM, FOR THOSE FUNDS. SO NOW IT'S IN A POSITIVE AND IT WAS IN A NEGATIVE PREVIOUSLY. UM, AQUATICS, UH, HAS A NEGATIVE WORKING CAPITAL OF 1.2 WITH 2.1 MILLION IN REVENUE AND 2.5 IN EXPENDITURES. UM, IT'S STILL REFLECTING A SLOW START FOR THE SUMMERS. THAT INCLUDES ABOUT TWO MONTHS. WE STILL WOULD'VE HAD, WE STILL HAVE JULY AND SEPTEMBER, UH, JULY AND AUGUST TO REPORT. I DON'T BELIEVE THEY'RE OPEN IN SEPTEMBER. ARE THEY? THEY ARE SLIGHTLY. OKAY. JUST WEEKENDS. JUST THE WEEKENDS. UM, JULY AND AUGUST. I'M SORRY. JULY AND AUGUST IS NOT ON THIS REPORT, BUT YES SIR. THIS IS ONLY UP TO JUNE. JUNE, OKAY. UM, STREET MAINTENANCE HAS A FAVORABLE BALANCE OF 7.5 MILLION WITH 3.4 MILLION IN REVENUE, UM, AND 3.2 IN EXPENDITURES. OUR UNSPENT BOND PROCEEDS IS 118 MILLION. BUT REMEMBER A GREAT DEAL OF THAT IS THE NEW DEBT THAT WE JUST ISSUED. AND, UM, AND THEN OUR INVESTMENTS IS 343.6 MILLION WITH EARNINGS TOTAL, 3.8 MILLION ACROSS ALL FUNDS. AND I'M HAPPY TO ANSWER ANY QUESTION ON THE SANITATION. SO WE'RE SHOWING THE 2.9 NEGATIVE. UM, SO I KNOW IN THE LAST, LIKE THE WORK SESSION, WE TALKED ABOUT WHAT CHANGES WE WERE GONNA MAKE SANITATION, AND SO HOPEFULLY WHAT WE RECOMMENDED GETS US BACK TO AT LEAST BREAK EVEN. BUT HOW, I'M SURE WE'RE NOT, I DON'T THINK THAT WAS ENOUGH TO LIKE, MAKE UP THAT NEGATIVE WAS IT WAS JUST GONNA BE EVEN FROM LIKE THIS POINT FORWARD. SO WILL THAT JUST BE A ONE TIME TRANSFER TO GET THAT BACK? YES. YES. SO WE ARE GOING TO, UM, FIX THAT FUND IN 25. SO YOU'LL SEE THAT'S ONE OF THE CHANGES WE MADE IN THE BUDGET THAT YOU'LL GET TODAY. OKAY. AT THE HEARING. SO WE'VE, UH, MADE THAT BALANCE OUT TO WHAT WE ARE PROJECTING TO SPEND. SO IT'LL BE A ZERO BALANCE INSTEAD OF A NEGATIVE BALANCE FOR 25. OKAY. THANK YOU. IT WAS 1.7, RIGHT? IT WAS ABOUT 1.7. YEAH. 1.7 MILLION THAT WE HAD TO HOW MUCH IS TRANSFER TO GET BACK TO AND NOW RATES GOING FORWARD SHOULD KEEP IT HOPEFULLY, YES. LIKE AT LEAST UP TO LEVEL . YEAH. OKAY. YEAH. OKAY. I DON'T HAVE ANY QUESTIONS, ANY OTHER QUESTIONS ABOUT THE QUARTERLY REPORT. OKAY. THEN WE WILL CONSIDER THAT RECEIVED. OKAY. UH, [a. Discuss the City of Baytown Utility Rate Policy.] ITEM FOUR A IS TO DISCUSS THE CITY OF BAYTOWN UTILITY RATE POLICY. OKAY. UM, SO AS WE WERE GOING THROUGH THE RATE DISCUSSION WITH COUNCIL, UM, RECENTLY, WE REALIZED THAT, YOU KNOW, IT WOULD PROBABLY BENEFICIAL TO HAVE A POLICY FOR OUR UTILITY RATES SO THAT STAFF CAN MAKE SURE THEY'RE MEETING THE INTENT, [00:05:01] YOU KNOW, OF, OF COUNCIL. AND WE HAVE KIND OF SOME, UH, GUIDANCE AND LEFT AND RIGHT LIMITS ON, UH, AS WE TRY TO SET OUR, OUR RIGHT WHAT, YOU KNOW, WE CAN, LIKE I SAY, MEET YOUR INTENT. UM, SO TODAY, REALLY NOT ANTICIPATING, UH, A BIG DISCUSSION. JUST KIND OF WANTED TO, UM, I GUESS, UH, START, START YOU THINKING ABOUT IT. AND, UH, I HAVE SOME HANDOUTS I WAS GONNA GIVE YOU. YOU CAN TAKE BACK AND, UH, MAYBE STUDY AND COME BACK FOR THE NEXT MEETING AND MAYBE HAVE MORE OF A DISCUSSION. UH, BUT SOME OF THE THINGS THAT I THINK WE WOULD LIKE TO SEE IN A POLICY IS, UM, WHETHER OR NOT THE ENTERPRISE FUNDS IN GENERAL SHOULD SUPPORT THE EXPENSES WITHOUT TRANSFERS FROM OTHER FUNDS. UH, KIND OF A TARGET DATE OF, OF RESERVES FOR THE FUND, UM, WHETHER DEBT IS ISSUED FOR ONLY CAPITAL PROJECTS OR OTHER ITEMS, UH, THE TYPE OF DEBT TO ISSUE THE TERM OF THE DEBT AND, UM, HOW RATES ARE ADJUSTED. IS IT, UH, DO YOU WANT A RATE STUDY TO HAVE A BASIS FOR THE RATE ADJUSTMENTS? THINGS LIKE THAT. THAT'S SOME OF THE THINGS THAT, YOU KNOW, WE HOPE YOU CONSIDER AND, UH, TRYING TO DEVELOP A POLICY. SO, FRANK, DID YOU HAVE ANYTHING TO ADD TO THAT? AND, AND I'LL PASS OUT THE HANDOUTS YOU HAD PREPARED. GOOD AFTERNOON AGAIN, EVERYONE. UM, SO THIS IS A PROCESS THAT I'VE GONE THROUGH IN OTHER CITIES AND, UH, WE CAN TALK ABOUT A LOT OF THINGS JUST IN GENERAL. UM, AND CONSIDERING WHAT WE'VE TALKED ABOUT IN SOME OF THE BUDGET MEETINGS AND SOME OF THE RETREATS, THIS SORT OF THING IS A WAY TO KIND OF DOCUMENT AND MEMORIALIZE SOME OF THE POLICY DECISIONS, DIRECTIONS, KIND OF, UM, EVEN PREFERENCES, A LOT OF THE THINGS THAT FRANK MENTIONED AND SO DIDN'T WANT TO OVERLOAD YOU WITH EXAMPLES OR, OR, UM, UH, OR, OR TECHNICAL THINGS. BUT YOU GOT FOUR ATTACHMENTS IN HERE. THE FIRST IS JUST KIND OF, UM, KIND OF A SUMMARY OF SOME OF THE THINGS THAT YOU MIGHT WANT TO CONSIDER, SOME OF THE WAYS YOU MIGHT WANT TO WORD THINGS. AND, UM, REALLY A LOT OF WHAT FRANK TALKED ABOUT EARLIER. UH, THEN WE HAVE TWO, UH, POLICY EXAMPLES. AND FOR THE MOST PART, WHEN IT COMES TO POLICIES, THESE ARE PRETTY, UH, SUCCINCT DOCUMENTS. UH, ADDISON ADOPTED A RESOLUTION IN 2018 THAT, UM, YOU KNOW, REALLY ONLY HAS, UH, YOU KNOW, KIND OF SOME GENERAL, UH, GUIDELINES FOR WHAT THEY WANT THE RATES TO ACCOMPLISH. AND IF WE DIDN'T MENTION IT EARLIER, I KNOW THAT WE'RE FOCUSED PRIMARILY ON WATER AND SEWER, BUT YOU COULD EXTEND THIS TO, UM, OTHER ENTERPRISE FUNDS AT SOME POINT AND, AND KIND OF REALLY LOOK TO, UM, YOU KNOW, IF YOU NEED TO DIFFERENTIATE, YOU CAN DO THAT. BUT, UH, THE ADDISON ONE REALLY JUST KIND OF SETS GUIDELINES. AND THEN EVERY YEAR IN THEIR BUDGET BOOK, AND I HAVE IT HIGHLIGHTED, THEY BASICALLY CONFIRM THAT THE UTILITY FUND AND THE RATES SET FOR THE UTILITY FUND FOLLOW THIS, UM, YOU KNOW, THESE PRINCIPLES, UH, THAT THEY HAVE IN THAT, UH, RESOLUTION. AND SO IT CAN BE AS SIMPLE AS THAT. THE, UH, AUSTIN, UM, UH, THE UTILITY RATES, UM, IT IS, UH, THREE PAGES. IT HAS A FEW MORE DETAILS IN IT AND A FEW MORE KIND OF, UM, SPECIFIC PARAMETERS. OBVIOUSLY THE ELECTRIC THING IS NOT SOMETHING THAT'S DIRECTLY RELATABLE TO ANYTHING THAT WE HAVE, BUT SOME OF THE, UH, SOME OF THE, UM, I GUESS KIND OF PRINCIPLES, YOU KNOW, WE CAN ADAPT AND GO FROM THERE, BUT, UM, IN GENERAL YOU REALLY JUST WANT TO KIND OF MEMORIALIZE A LOT OF THE THINGS THAT, THAT, UH, YOU ALL HAVE TALKED ABOUT AGREED UPON. AND, UM, THAT'LL PROVIDE, UH, DIRECTION AND SOME SORT OF BASIS FOR WHAT WE DO YEAR OVER YEAR. UM, YOU KNOW, SOME OF THE STAFF, UH, LEAVE SOME OF YOU, UH, UH, COME OFF COUNCIL, IT MEMORIALIZES THAT AND AT LEAST KIND OF SETS THAT POLICY IN PLACE FOR US TO MOVE FORWARD. AND THEN THE LAST THING THAT I HAVE IS, UM, AN EXCERPT FROM A PRESENTATION FROM THE CITY OF OXNER, CALIFORNIA. AND IT'S, UM, VERY, I GUESS KIND OF, UM, SEGMENTED INTO THOSE CERTAIN CATEGORIES ABOUT DEBT RESERVES, UM, KIND OF, YOU KNOW, HOW THE RATES, UH, SHOULD BE STRUCTURED, WHAT THEY SHOULD COVER, THAT SORT OF THING. SO ALL OF THIS IS, UM, YOU KNOW, REALLY FOR, YOU KNOW, YOUR OWN BENEFIT AND BEING ABLE TO KIND OF GO THROUGH AND, AND [00:10:01] LOOK AT, OH, WELL MAYBE WE SHOULD INCLUDE THIS, MAYBE WE SHOULD TOUCH ON, UH, THIS. BUT, UH, DEFINITELY YOU WANT TO MEMORIALIZE SOME OF THE THINGS THAT YOU TALKED ABOUT AND REALLY KIND OF SET, UM, SOME PARAMETERS FOR THE FUTURE. YOU DON'T WANT TO HAVE RATES THAT ARE GONNA SHOOT UP. SO, UM, THE IDEA OF GRADUAL RATE INCREASES OR GRADUAL RATE, UM, COMPRESSIONS, YOU KNOW, THAT'S KIND OF THE SORT OF THING THAT YOU, THAT YOU PROBABLY WANNA LOOK AT TOO. AND, UM, SO WE WANT TO PASS THESE OUT, GIVE YOU ALL A CHANCE TO GO THROUGH AND, UH, IF Y'ALL HAVE ANY QUESTIONS, YOU KNOW, OFF, UM, YOU KNOW, OUTSIDE OF THE MEETING, BY ALL MEANS FEEL FREE TO, UH, TO EMAIL THOSE. I'M NOT SURE. UM, THEY NORMALLY GO THROUGH YOU FOR ITEMS OR, OKAY. SO, UM, OH, SORRY, I'M HERE. UM, SO YEAH, JUST GET THE QUESTIONS OVER AND WE'LL TAKE CARE OF THAT AND KIND OF HELP IF THERE'S ANY WORDING OR SPECIFICS THAT ARE NEEDED. SO, UH, HAPPY TO ANSWER ANY QUESTIONS, BUT, UM, I THINK YOU HAVE, UH, YOU HAVE YOUR HOMEWORK. JUST A QUICK QUESTION. UM, I FEEL THAT I LIKE WHERE WE'RE GOING , UM, BECAUSE AT LEAST WE'RE SETTING THOSE PARAMETERS AHEAD OF TIME. UM, WHICH ONES KNOWING THAT WE COULD BE FLEXIBLE, RIGHT? EVEN THOUGH WE'RE SELLING SETTING POLICY, THINGS COME UP AND WE'LL HAVE TO BE FLEXIBLE AND I KNOW THESE ARE JUST EXAMPLES. YEAH. UM, AND, UM, THEY SHOW A, UM, KIND OF A, A RATE, UH, OVER SEVERAL FISCAL YEARS. MM-HMM . IS THAT SOMETHING THAT YOU INTEND KIND OF DO LIKE A FIVE TO FIVE YEAR PLAN? I THINK THAT'S EXTREMELY IMPORTANT TO YOU AS WE WERE KIND OF TALKING ABOUT HAVING, YOU KNOW, GRADUAL INCREASES OR COMPRESSIONS OVER THE YEARS. UH, YOU DO WANT TO AVOID KIND OF THAT UP AND DOWN AND, UM, YEAH. AND SO THAT'S A, THAT'S A REALLY IMPORTANT THING. AND THE MAIN, I GUESS, PURPOSE OF, OF A DOCUMENT OR A OF A, OF A POLICY LIKE THIS IS TO REALLY GIVE STAFF THAT KIND OF INITIAL GUIDANCE TO WHERE IF WE KNOW WE'RE GONNA BE LOOKING AT, FOR EXAMPLE, YOU KNOW, SSO PROJECTS, WE KNOW HOW WE WANT TO STRUCTURE THEM AND HAVE THE RATES NEEDED TO SUPPORT THEM BASED ON SOME OF THESE INITIAL PARAMETERS. AND, UM, WHEN I SAY THAT TOO, AND THERESA, I'LL, UM, DEFER TO YOU AS WELL ON THIS, BUT THIS IS THE SORT OF THING THAT RATING AGENCIES LOVE TO SEE. THEY LOVE TO SEE CONSENSUS, THEY LOVE TO SEE DOCUMENTATION OF THE FACT THAT IF YOU'RE GOING TO TRY TO SELL DEBT, YOU ARE WILLING TO SUPPORT IT WITH THE RATES. OR IF YOU'RE GOING TO SELL DEBT, YOU'RE GONNA DO IT IN THIS MANNER. SO THE RATES ARE MANAGED OVER THE YEARS, THAT SORT OF THING. UM, SO THAT, YOU KNOW, CERTAINLY I THINK WOULD, UH, WOULD HELP US AS WE'RE MOVING FORWARD WITH THAT. THAT IS TRUE, ESPECIALLY IF YOU'RE, UM, ISSUING REVENUE BONDS. IT'S IMPORTANT TO MAKE SURE YOU'RE GONNA, UM, SUPPLY THE REVENUE NEEDED TO PAY THE DEBT SERVICE. RIGHT. YEAH. I THINK THEY LIKE TO SEE MULTI-YEAR PLANS, UM, THAT CAN BE, YOU KNOW, SEPARATE FROM YOUR POLICY. MM-HMM . UM, I THINK CITY OF HOUSTON WENT TO THAT WHERE, YOU KNOW, AFTER THEY WENT INTO THEIR CONSENT DECREE, UM, THEY ADOPTED, UM, BASICALLY A MULTI-YEAR RATE PLAN AND THAT KEEPS COUNCIL FROM HAVING TO REVISIT IT EVERY YEAR. YEAH. AND I, I THINK THAT'S SOMETHING THAT THE RATE AGENCIES LIKE TO SEE. 'CAUSE THEN, YOU KNOW, YOU CAN PLAN FARTHER OUT. I THINK WE HAVE, I WOULDN'T DO THAT WITH BAYTOWN RIGHT NOW BECAUSE WE'RE STILL NEGOTIATING OUR CONSENT DECREE, BUT MAYBE ONCE IT'S FINALIZED AND WE KNOW WHAT WE NEED IT, IT WOULD BE BENEFICIAL TO HAVE THAT LONG TERM PLAN. YOU START TALKING ABOUT THE MIX OF FUNDING FOR, UM, OPERATIONS, CAPITAL EQUIPMENT, CAPITAL PROJECTS, UM, YOU KNOW, THINGS LIKE THIS. HAVING THOSE IN ADVANCE, YOU KNOW, IT'S REALLY HELPFUL FOR US AND IT UM, KIND OF AVOIDS US HAVING TO RECREATE THE WHEEL EVERY YEAR. SO, BUT, UH, WE'LL BE HAPPY TO ANSWER ANY ADDITIONAL QUESTIONS, UH, OR EMAIL THOSE IN TO JASON AND, UH, WE'LL HELP OUT, UH, AS IT COMES. I HAVE A QUESTION ABOUT JUST THE WATER BILLING IN, IN GENERAL. UM, 'CAUSE I KNOW LAST SUMMER WHEN WE HAD THE SEWER CAPS COME OFF, WE HAD A LOT OF QUESTIONS ABOUT, YOU KNOW, FOLKS WITH WATER BILLS. AND I KNOW WE'RE KIND OF IN THE PROCESS OF UPGRADING TO THOSE METERS THAT LIKE OUT MAYBE HOURLY OR, I KNOW IT'S, IT'S MORE THAN JUST A TOTAL, RIGHT? IT GIVES US MORE DATA. WHERE ARE WE IN THE PROCESS OF UPGRADING THE WHOLE CITY TO THOSE? UH, WE ARE IN THE FIRST PHASE OF REPLACING THE METERS THAT HAS REACHED THEIR LIFE EXPECTANCY 20 YEARS. [00:15:02] SO, UH, WE'LL BE REPLACING 5,000 METERS, UM, STARTING THE FIRST WEEK IN SEPTEMBER. OKAY. AND WE'RE GOING TO GET 5,000 METERS OUTTA THE GROUND AND THOSE METERS, ONCE WE REPLACE 'EM, WE'LL BE ABLE TO, UH, DATA LOG 'EM, LIKE YOU SAY, UH, GET THE MONTHLY, THE DAILY AND HOURLY USAGE. SO WHEN THE CUSTOMER DO, UH, HAVE A CONCERN ABOUT A HIGH BILL, THEN WE WILL BE ABLE TO PROVIDE THEM THAT DOCUMENTATION. OKAY. SO THAT'S THE FINAL 5,000 THAT AREN'T, THAT HAVEN'T BEEN UPGRADED. THERE'S A TOTAL OF 15,000 CURRENTLY THAT METERS ARE STILL IN THE GROUND THAT REACHED THEIR LICENSE. YEAH. OKAY. SO WE ARE, IS IT 5,000 A YEAR OR IS IT, OR IS THIS THE FIRST? I MEAN, WITHIN THE NEXT, I'M GONNA SAY FIVE YEARS, WE'RE GOING TO HAVE AN ADDITIONAL 10,000. SO THERE'S 25,000 TOTAL METERS THAT WE NEED TO REPLACE THAT HAVE BEEN IN THE GROUND SINCE WE DID A CITYWIDE METER CHANGE OUT TO NEPTUNE METERS. THAT WAS BACK IN 2005, 2006. OKAY. AND THAT'S ACROSS ALL CUSTOMER CLASSES? CORRECT? THESE ARE RESIDENTIAL ONLY. RESIDENTIAL ONLY. YES SIR. 25,000 INCLUDE IRRIGATION METERS. YES SIR. YES SIR. YES SIR. WOULD WE BE ABLE TO GET TO A POINT, AND, AND I KNOW THIS IS A LONG TERM PROCESS, BUT UM, ONE OF THE THINGS THAT I'VE TALKED BEFORE IS, UM, HAVING THE RESIDENTS BE ABLE TO HAVE THEIR OWN DASHBOARD AND BE ABLE TO LOG IN AND SEE THEIR ACTUAL TIME, UM, INSTEAD OF REACHING OUT TO Y'ALL. AND I KNOW THAT'S A DIFFERENT SYSTEM, UM, BUT IS THAT SOMETHING THAT Y'ALL HAVE LOOKED AT AND WHAT, YOU KNOW, THE COST IS AND TIMEFRAME YEAH. TO ROLL THAT OUT? WHAT'S THE DIFFERENCE BETWEEN THAT AND THE EXISTING METERS THAT WE'RE UPGRADING? SO THE METERS THAT WE'RE INSTALLING NOW, WE'RE ABLE TO DO THE CUSTOMERS, WE CAN ALLOW CUSTOMERS THAT ACCESS MM-HMM . BUT WHAT GIVES TO THE CUSTOMERS THAT ACCESS ARE THE GATEWAYS THAT WE'RE PUTTING UP ON THE WATER TOWERS. MM-HMM . WE HAVE THREE INSTALLED NOW WE'RE READING ABOUT, UH, I'M GONNA SAY ABOUT 30% OF THE CUSTOMERS ARE ON THE GATEWAYS. SO WE DIDN'T WANT TO PURCHASE THE CUSTOMER PORTAL TO ALLOW THEM THAT ACCESS AND THEIR NEIGHBORS LIKE, I DON'T HAVE THAT. SO IT WOULD CAUSE A HUGE UPROAR, SO. GOT IT. WE WANT MAJORITY OF THE CUSTOMERS ON THERE BEFORE WE ROLL IT OUT. OKAY. YEAH. THANK YOU. AND I'LL JUST SHARE WITH Y'ALL, I'VE GONE THROUGH TWO METER CHANGE OUTS IN OTHER CITIES AND, UH, THE PORTALS ARE VERY HELPFUL, ESPECIALLY AS PART OF THIS PROCESS. UM, MOST OF THE TIME WHEN YOU CHANGE OUT AN OLD METER FOR A NEW METER, IT'S GOING TO CAPTURE WATER MORE ACCURATELY AND THEREFORE THE BILLS ARE GONNA BE HIGHER AND YOU ALL WILL BE RECEIVING PHONE CALLS. MY NEW METER DOESN'T WORK. UM, IT'S ACTUALLY WORKING JUST FINE. YEAH. YEAH. AND HAVING THE UH, PORTAL DOES KIND OF HELP. AND ESPECIALLY IF, UM, YOU KNOW, THEY SEE FOR SOME REASON THEY'RE USING WATER AT 2, 3, 4 IN THE MORNING WHEN NO ONE'S UP, YOU KNOW, THERE'S POTENTIAL FOR A LEAK, THAT SORT OF THING. AND THE SYSTEMS HAVE THE ABILITY TO KIND OF CREATE, YOU KNOW, FOR LACK OF A BETTER WAY TO PUT IT, EXCEPTION REPORTS THAT, YOU KNOW, THERE'S CONSTANT FLOW AND THERE'S NO, SO THERE'S, THERE'S A LOT OF ADVANTAGES TO THOSE, UM, TO THOSE SYSTEMS. SO YEAH. AND THAT'S, THAT'S WHAT I WAS GETTING AT WHEN I ASKED HOW MANY DO WE HAVE LEFT BECAUSE I WAS TRYING TO UNDERSTAND HOW FAR, HOW FAR AWAY ARE WE FROM GETTING TO THAT POINT WHERE WE CAN HAVE CUSTOMER CAN LOG IN AND SEE, I MEAN, 'CAUSE I WAS LOOKING, I THINK IT'S LEAGUE CITY, YOU CAN SET YOUR OWN ALERTS, YOU KNOW, IF YOUR FLOW'S OVER A CERTAIN AMOUNT IN AN HOUR, YOU'LL GET A, I DON'T KNOW IF IT'S A TEXT OR AN EMAIL OR WHAT IT'S, BUT CUSTOMERS CAN GO IN AND SET UP WHATEVER KIND OF ALERTS THEY WANT TO. AND SO I DIDN'T KNOW HOW FAR, HOW FAR AWAY ARE WE FROM, I MEAN ARE WE TALKING THREE YEARS, FIVE YEARS OR IS THAT, YEAH, I DON'T KNOW THE EXACT KIND OF BLEND THAT YOU HAVE RIGHT NOW, BUT TYPICALLY YOU'RE CUSTOMER PORTAL DEPENDS ON ALL OF THE METERS BEING, YOU KNOW, AT LEAST SOMEWHAT UNIFORM. UM, AND SO I THINK THAT, YOU KNOW, THE BUR OVER, UH, YOU GUYS, BUT WE HAVE, OUR SYSTEM IS, WE HAVE ALL NEPTUNE METERS, SO THAT'S A PLUS. SO, UH, WHAT WE'RE LACKING IS THE GATEWAYS ON THE TOWERS AND THE REPLACEMENT OF THE AGE METERS IN THE GROUND. OKAY. UH, WE HAVE NINE WATER TOWERS, UH, AND WE HAVE GATEWAYS ON THREE OF 'EM. THERE'S ONE ON BAKER ROAD WATER TOWER, [00:20:01] ONE ON EAST JAMES WATER TOWER AND TONKIN WATER TOWERS. THOSE ARE THREE LOCATIONS. OKAY. UM, THEY'RE ABOUT INSTALLED. THEY'RE ABOUT 40,000 A PIECE. UM, WE'RE IN THE PROCESS OF GETTING THE UPDATED PROPAGATION STUDY, WHICH TELLS US ONCE, BASED ON THOSE THREE, UH, GATEWAYS THAT ARE INSTALLED, HOW MUCH A COVERAGE, UH, HOW MUCH, HOW MANY ADDITIONAL GATEWAYS WILL WE NEED TO PROVIDE MAJORITY OF THE CITY ON, ON THE, UH, NETWORK? HOW MANY TOWERS DO WE HAVE? SEVEN. I THINK IT'S NINE. NINE NINE. YEAH. YEAH. THE REASON I'M ASKING THESE QUESTIONS IS 'CAUSE I WAS, I WAS THINKING ABOUT, UH, RATE STRUCTURE, UM, OR I'VE BEEN THINKING A LITTLE BIT ABOUT IT AND UM, I MEAN, MAYBE WE CAN GET CREATIVE. I KNOW A LOT OF TIMES WE JUST KIND OF LOOK AND SEE WHAT OTHER CITIES ARE DOING AND WE SOMEWHAT MATCH IT. I LOOKED AT A BUNCH OF OTHER CITIES, THEY ALL DO THE CONSERVATION BLOCK. I MEAN, IT'S PRETTY COMMON. IT SEEMS TO BE PRETTY COMMON. UM, BUT I KNOW THERE'S REALLY TWO THINGS WITH, WITH WATER IT'S SIMILAR TO ELECTRICITY. THAT'S WHY IT'S INTERESTING YOU PUT AUSTIN IN HERE 'CAUSE YOU HAVE YOUR TRANSMISSION AND YOUR DISTRIBUTION. RIGHT. THAT'S REALLY TWO DIFFERENT THINGS. AND WE CAN HAVE A TOTAL WATER DEMAND IN A DAY, BUT IF IT'S ALL IN A SINGLE HOUR YEAH. THAT AFFECTS US DIFFERENTLY IF IT'S SPREAD OUT, RIGHT? YES. AND SO, UM, I DON'T KNOW IF THERE ARE ANY CITIES THAT DO ALMOST LIKE A TRANSMISSION AND DISTRIBUTION TO WHERE IF, IF YOU DO SPREAD YOUR, YOU KNOW, SET YOUR SPRINKLERS TO GO OFF IN THE MIDDLE OF THE NIGHT. NOT 'CAUSE I, I, I GO RUNNING AT FIVE IN THE MORNING AND I CAN'T TELL YOU HOW MANY SPRINKLERS I PASS ON. IT'S PROBABLY AROUND THE SAME TIME THAT EVERYBODY'S GETTING UP AND TAKING SHOWERS. AND SO I IMAGINE OUR DEMAND IS JUST YEAH. INSANE IN THAT HOUR OR TWO WINDOW. SO LIKE DIURNAL, IF YOU ALMOST HAD IT, YEAH, IF YOU ALMOST HAD A SEPARATE TRANSMISSION CHARGE VERSUS THE DISTRIBUTION, THEN IT MAY ENCOURAGE PEOPLE TO SPREAD THAT OUT OVER THE DAY. BUT WE WOULD HAVE TO HAVE MORE LIKE HOURLY YOU WOULD HAVE ALL SMART METERS, RIGHT. WHERE YOU CAN MAYBE DO A, A PEAK DEMAND CHARGE OR RIGHT. SOMETHING LIKE THAT BECAUSE WE ALWAYS, IF THAT'S YOUR PEAK DEMAND, THEN WE ALWAYS HAVE TO BE ABLE TO MEET THAT. RIGHT. WE HAVE TO HAVE THE WATER CAPACITY TO, TO MEET THAT. SO, UM, I DON'T KNOW IF THAT'S SOMETHING THAT'S BEING DONE ANYWHERE ELSE, BUT, UM, I I THINK THAT MAY ALMOST HAVE, UH, A GREATER BENEFIT THAN THE CONSERVATION BILL. LIKE IF YOU USE X AMOUNT OF WATER, YOU'RE GONNA USE IT REGARDLESS, BUT IF WE CAN CONVINCE YOU TO SPREAD IT OUT THROUGHOUT THE DAY, THAT WOULD, THAT WOULD HELP US. THAT WOULD BE A KIND OF SIMILAR TO A CONSERVATION RATE. IT'S JUST, UH, BASED ON THE TIMING. RIGHT. YEAH. SO THAT WAS, IT'S HOW THEY DO IN ELECTRICITY WORLD. I MEAN, YOU'VE GOT YOUR SEPARATE TRANSMISSION AND DISTRIBUTION CHARGES. I DON'T KNOW IF AUSTIN HAS ANYTHING LIKE THAT. I'LL HAVE TO LOOK IN HERE. I DON'T KNOW, BUT I DON'T KNOW HOW SPECIFIC, UM, THEY WOULD GET. BUT YOU KNOW, THE IDEA OF PROMOTING CONSERVATION AND BALANCE USAGE, I MEAN, YOU KNOW, IT MIGHT JUST BE AS SIMPLE AS SAYING THAT AND THEN WE CAN RESEARCH AND GO FROM THERE. I THINK CONSERVATION HAS A PLACE BECAUSE OF THE, UM, WATER SUPPLY AND THAT WE DON'T HAVE CONTROL OF WATER SUPPLY. WE HAVE TO NEGOTIATE FOR. UM, SO THERE, THERE IS I THINK SOME BENEFIT IN THE TOTAL VOLUME OF CONSERVATION, BUT AS YOU SAID, PEAK DEMAND IS ANOTHER COMPONENT OF IT THAT RIGHT. I WAS, I MEAN THAT'S WHAT'S GONNA DRIVE US TO HAVE TO ADD ON TO THE, TO THE PLANNING PLANNING PIECE. RIGHT. RIGHT. YES. WE CAN ALSO, UM, BRING BACK MORE DATA ON LIKE ONCE THE STUDY IS DONE, HOW MUCH IT WOULD COST IF WE WANTED TO, UM, MAKE THE MOVE FASTER TO THE NEW SYSTEM TO WHERE THE CUSTOMERS HAVE ACCESS. AND WE CAN TALK ABOUT THAT TIMELINE, MAYBE PUSH IT A LITTLE BIT, BUT OF COURSE WE WOULD NEED THE FUNDING. RIGHT. AND I DON'T KNOW IF RAISING THAT, THAT LOWEST VOLUME USER RAISING, I DON'T KNOW WHAT THE, IF WE KNOW THE EFFECT OF THAT, IF THAT WOULD HELP US WITH SOME CAPITAL. WE'RE GONNA DO, UM, KIND OF A, A RATE ANALYSIS THIS YEAR, SO I'LL START THAT IN OCTOBER, UH, HOPEFULLY. UM, AND THEN WE'LL BE ABLE TO ESTIMATE THE IMPACTS OF THOSE, THE CHANGE IN THAT. OKAY. PLAN, PLAN. Y'ALL HAVE ANY OTHER QUESTIONS ON THIS? SOUNDS LIKE WE HAVE HOMEWORK. ? YES, WE DO. . GOOD QUESTION ABOUT THE, THE PILOT, THE, THE NEW METERS. UM, ANSWER A LOT OF QUESTIONS THERE. I GUESS IF YOU SAID WE WERE PURCHASING [00:25:01] 5,000 OF 'EM SEPTEMBER 1ST, SO THAT WOULD STILL BE THIS YEAR'S BUDGET, RIGHT? SO IS THERE MONEY IN NEXT YEAR'S BUDGET FOR AN ADDITIONAL SUM AMOUNT OF METERS? I BELIEVE SO. I, I BELIEVE SO. THERE'S, THERE MAY BE, UH, I'M NOT FOR SURE, BUT, UH, THIS WAS A PART OF THE CIP UH, THE 5,000 METERS. OKAY. IT WAS PART OF THE CIP BUDGET, UM, THAT WAS SEPARATE FROM THE GENERAL CODE. OKAY. MAYBE WE CAN JUST CONFIRM THAT THERE'S ANOTHER SET OF THOSE IN NEXT YEAR'S BUDGET. DO YOU HAVE A MAP OF THE, ONE OF THE AREAS THAT STILL NEED TO BE UPDATED? WE DON'T HAVE A MAP, WE HAVE ADDRESSES. UH, OKAY. AND BASED ON THE ACCOUNT NUMBER, WE WOULD KNOW WHAT ROUTE THERE IS. SO WE DO HAVE A MAP, BUT WE DON'T HAVE A, IT'S NOT GENERATED. RIGHT, RIGHT, RIGHT. OKAY. I I THINK IT'LL BE GOOD AS WE'RE PIT SAY AS Y'ALL HAVE SO MUCH OUT THERE ALREADY, STILL AND YOU KNOW, PEOPLE THINK, UH, A NEW METER MEANS BROKEN METER. UM, THAT, YOU KNOW, I I I WOULD LIKE TO SEE US GET SOME KIND OF FUNDING FOR THAT NEW PROGRAM TO ACTUALLY, SO PEOPLE CAN ACTUALLY SEE IN REAL TIME. IT'S NOT, I MEAN, I'M SURE WOULD HELP THE WHOLE CITY RUN, YOU KNOW, EFFICIENTLY, BUT PEOPLE GOING UP TO, TO, UH, TO THE WATER BUILDING PLACE WHERE THEIR, WHERE THEIR METERS, THEIR METERS GOING DOWN TO, UM, YOU KNOW, THEY COULD SEE IT IN REAL TIME. OKAY. THIS IS, IT'S NOT, IT'S NOT A BROKEN METER AND THIS IS WHAT'S GOING ON. SO I I'M, I'M ALL FOR, YOU KNOW, I WOULD DEFINITELY SEE WHERE WE CAN DO, AND UM, MARCUS, I THINK YOU'S SAYING THE SAME THING THAT, YOU KNOW, WE DO LOOK AT A ROLLOUT ONCE WE HAVE, UM, YOU KNOW, THE CHANGE OUTS DONE. IF THEY START LOOKING AT A DASHBOARD FOR AN OLDER METER, UM, YOU KNOW, THAT'LL BE A DOUBLE WHAMMY THAT, UM, YOU KNOW, IT'S NOT ACCURATE. AND THEN WHEN THE NEW METER COMES ON, IT'S, WELL, I USED TO BE AT THIS AND SO, BUT, UH, YEAH, LOOKING AT HOW TO SPEED THAT UP, CERTAINLY SOMETHING, YEAH, I MAY BE DREAMING, BUT IF WE COULD GET AHEAD OF THAT AS WE'RE PUTTING THAT OUT, IT IT WOULD, IT WOULD SERVE OUR, IT WOULD SERVE EVERYBODY VERY WELL. PUTS THEM MORE IN CHARGE AND SURE. EVEN IN THEIR OWN USE USAGE. UM, OKAY. OKAY. OKAY. ANY OTHER QUESTIONS OR COMMENTS? ALL RIGHT, WE HAVE ADDRESSED ALL POSTED AGENDA ITEMS. THIS MEETING IS NOW ADJOURNED. THANK YOU EVERYONE. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.