* 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. PLEASE. [00:00:24] GOOD MORNING, EVERYBODY. WELCOME TO THE, THE MEETING OF THE MUNICIPAL UTILITIES COMMITTEE. TODAY'S TUESDAY, AUGUST 23RD. UH, WE'LL GO AHEAD AND ASK THE, UH, CLERK TO READ THE ROLE, PLEASE. COUNCIL MEMBER BRAVO. COUNCIL MEMBER ROCHA GARCIA HERE, COUNCIL MEMBER KEO BERDA HERE. COUNCIL MEMBER SANDOVAL HERE, CHAIR, COURAGE PRESENT CHAIR. WE HAVE A QUORUM THANK YOU TODAY. UH, I'VE ASKED THE MUNICIPAL, UH, THE LOCAL UTILITIES COME AND TALK WITH US ABOUT A COUPLE OF KEY ISSUES THAT I THINK ALL OF US HAVE BEEN VERY WELL AWARE OF, UH, YOU KNOW, WHAT'S BEEN GOING ON WITH, UH, THE HEAT AND THE DROUGHT THAT THIS GREATER REGION IS FACING. SO I'VE ASKED C P S, UH, YOU KNOW, HOW IS C P S DEALING WITH THE RECORD BREAKING HEAT AND WHAT ARE THE MAIN CONTRIBUTORS TO ENERGY BILLS BEING SO HIGH? AND I'VE ASKED SAAS TO TALK ABOUT THEIR WATER SUPPLY AND THEIR DROUGHT MANAGEMENT. SO THAT'S BASICALLY THE SUBJECT MATTERS THAT WE'LL BE HEARING FROM TODAY. AND I JUST WANT TO ASK MY FELLOW COUNCIL MEMBERS, ALTHOUGH I, I DO NOT LIKE TO PUT A LIMIT ON YOUR QUESTIONING OR THINGS OF THAT NATURE, BUT I'LL ASK YOU TO KIND OF CHECK YOURSELF SO THAT WE CAN GET THROUGH THIS FAIRLY WELL. [Approval of Minutes  ] OKAY? UH, THE FIRST ITEM ON THE AGENDA IS TO APPROVE THE MINUTES FROM JUNE 28TH MEETING OF THE M U C. ANYBODY HAVE ANY QUESTIONS OR CONCERNS ABOUT THAT? OKAY. ALRIGHT. I THINK I HAVE A MOTION BY, UH, COUNCILWOMAN COBE HAVADA, AND, UH, A SECOND BY COUNCILMAN RUCHA GARCIA. SO, AGAIN, ANY QUESTIONS OR CONCERNS? OKAY. HEARING NONE, PLEASE VOTE. RAISE YOUR HAND OR YOUR VOICE BY SAYING AYE. AYE. AYE. ANY OPPOSED? OKAY. HEARING NONE. THE MINUTES ARE APPROVED. UH, WE'LL BE VOTING, UH, BY ASKING YOU TO GO AHEAD AND, UH, SIGNAL YOUR VOTE BY VOICE AND BY HAND BECAUSE WE'RE NOT HOOKED UP TO THE CITY SYSTEM AS WE ARE OVER AT COUNCIL CHAMBERS. OKAY, THE NEXT ITEM ON OUR AGENDA IS PUBLIC COMMENT. UH, MADAM CLERK, DO WE HAVE ANY ONE SIGNED UP FOR PUBLIC COMMENT TODAY? WE HAVE NO ONE SIGNED UP TO SPEAK. OKAY, THANK YOU. ALRIGHT, [Briefing and Possible Action on the following items  ] THEN WE'LL PROCEED WITH OUR BRIEFINGS. UH, THE FIRST BRIEFING WILL BE BY C P S ENERGY ON POWER GENERATION AND SUMMER PERFORMANCE. AND, UH, I INVITE, UH, WHOEVER'S GONNA BE SPEAKING TO US TO COME TO THE PODIUM AND KICK US OFF. GOOD MORNING. GOOD MORNING. UH, MY NAME IS KEVIN PAULO, VICE PRESIDENT ENERGY SUPPLY AND MARKET OPERATIONS. UH, BENNY ETHERIDGE WAS OUR SCHEDULED SPEAKER, BUT HE'S DOING A DIFFERENT, UH, FORM OF CIVIC DUTY TODAY. HE'S IN JURY DUTY. SO, UH, I WILL BE WALKING THROUGH THE THE C P SS UPDATE, UH, TODAY AS YOU REQUEST. I WANNA TALK A LITTLE BIT ABOUT SUMMER PERFORMANCE, UH, TALK ABOUT THE WEATHER A BIT, UH, SOME OF THE HIGHLIGHTS OF OUR GENERATION, TALK ABOUT, UH, PLANT PERFORMANCE, UH, SOME OF THE DRIVERS THAT HAVE CAUSED US, UH, SOME LOST GENERATION. AND FINISH THE, THE PRESENTATION BY TALKING A BIT ABOUT OUR, OUR WINTER, UH, MAINTENANCE SCHEDULING, UH, AND SOME LESSONS LEARNED THAT WE DID FROM FROM LAST WINTER. I DO WANNA START, THOUGH, AS THIS SLIDE, UH, SHOWS AT THE BOTTOM, UH, AS WE'VE WORKED THROUGH OUR RECORD SETTING TEMPERATURES OVER THE LAST THREE MONTHS. UH, I'M VERY PROUD, YOU KNOW, THAT OUR TEAM IS SAFELY GENERATED OVER 5.2 MILLION MEGAWATT HOURS OF ELECTRICITY, UH, FOR THIS COMMUNITY. I THINK EVERYONE KNOWS, UM, YOU KNOW, THAT THIS HAS BEEN A VERY, UH, RECORD SETTING SUMMER SO FAR AS, AS YOU CAN SEE ON THE SLIDE, YOU KNOW, MAY, JUNE, AND JULY INDIVIDUALLY, EACH OF THOSE THREE MONTHS HAVE BEEN THE, THE HOTTEST MONTH ON RECORD, YOU KNOW, BOTH ONE MAY, JUNE, AND JULY. UH, THIS JUST SHOWS THE AVERAGE TEMPERATURES, BUT YOU CAN SEE HOW IT, THIS SUMMER COMPARES TO, UH, THE PREVIOUS RECORD IN, IN BLUE, AND THEN, YOU KNOW, THE AVERAGE TEMPERATURE, UH, OVER THE LAST 30 YEARS. SO, UH, WE'VE CERTAINLY SEEN A VERY CHALLENGING, UH, START TO THE SUMMER IN, IN TERMS OF HEAT AS YOU LOOK AT THE, THE SHORT-TERM OUTLOOK. UH, GRANTED THIS WEEK, UH, A LITTLE BIT DIFFERENT WITH THE RAIN AND THE COOLER TEMPERATURES THAT HAVE MOVED IN, BUT WE DO EXPECT THAT THOSE WILL, UH, EXIT, UH, BY THE END OF THE WEEKEND. SO, AS YOU LOOK AT THIS, UH, SHORT-TERM OUTLOOK, WE ARE EXPECTING, YOU KNOW, THE HOTTER AND AND DRIER PATTERN TO RETURN TO SAN ANTONIO AND CONTINUE TO CHALLENGE US FOR THE REMAINDER OF THE SUMMER RUN. THIS [00:05:01] SLIDE SHOWS, UH, JUST BY FUEL TYPE OR GENERATION TYPE, HOW OUR UNITS HAVE PERFORMED OVER THE SUMMER. UH, I WANT TO POINT OUT THAT THE, THE BLUE LINE IS OUR BUDGET FORECAST, THE AMOUNT OF GENERATION THAT WE EXPECTED OUR UNITS TO PROVIDE. UH, WHEN WE DID OUR BUDGET AT THE END OF LAST YEAR, AS YOU CAN SEE IN THE ORANGE, THAT'S WHAT WE'VE ACTUALLY DONE SO SIGNIFICANTLY HIGHER FOR MOST OF OUR GENERATING UNITS. AND THAT'S BEEN IN RESPONSE TO THE EXTREME, UH, TEMPERATURES THAT WE'VE SEEN. UH, ON THE TOP LEFT, UH, THE COMBINED CYCLE PATTERN, UH, OR CHART A LITTLE BIT BELOW WHAT WE HAD FORECAST IN JUNE AND JULY, AND THAT WAS DUE TO, UH, AN OUTAGE ON OUR RIO GALLES UNIT. WE'LL COVER THAT IN, UH, ON THE NEXT SLIDE AS WELL, OR A COUPLE SLIDES LATER. UH, FROM A PERFORMANCE HIGHLIGHT, I DO WANT TO POINT OUT, UH, OBVIOUSLY OUR FOCUS, PARTICULARLY DURING EX UH, TRYING TIMES LIKE THIS, IS ON SAFETY. UH, WE'VE HAD ZERO INJURIES SO FAR THIS, THIS SUMMER. UH, OUR FOCUS HAS BEEN ON HEAT ILLNESS PREVENTION, OBVIOUSLY, GIVEN, GIVEN THE RECORD SETTING TEMPERATURES THAT WE'VE FACED. UH, OVERALL, OUR PLAN HAS PERFORMED OR OUR FLEET HAS PERFORMED WELL. UM, WE'VE HAD, HAVE HAD UNITS THAT HAVE BEEN DOWN FROM MAINTENANCE FROM TIME TO TIME, BUT OUR CREWS HAVE, UH, STEPPED IN QUICKLY TO, UH, ADDRESS WHATEVER ISSUE CAME UP. UH, REPAIR THE UNIT, WORK WITH, UH, OUR INTERNAL TEAMS AS WELL AS OUR CONTRACTORS TO MAKE SURE THAT WE ARE ABLE TO RETURN THE UNITS TO SERVICE AS QUICKLY AS POSSIBLE. UH, I DO WANT TO POINT OUT THAT WE SAY ZERO HUMAN PERFORMANCE EVENTS. I APOLOGIZE. UM, THERE SHOULD BE A SUB BULLET THERE. WE'VE, WE HAVE HAD A COUPLE OF MINOR HUMAN PERFORMANCE EVENTS, BUT THEY HAVE RESULTED IN ZERO SIGNIFICANT, UH, IMPACTS. YOU KNOW, THOSE, EACH OF THOSE ISSUES WERE CORRECTED VERY QUICKLY. UH, MAY HAVE IMPACTED A UNIT FOR A COUPLE OF HOURS, BUT THEY WERE, UH, RETURNED TO FULL LOAD STATUS, YOU KNOW, THAT SAME DAY, UH, FROM A FORECAST. AS WE LOOK AT THE REST OF THE SUMMER, UH, OUR FOCUS CONTINUES TO BE ON A HUNDRED PERCENT RELIABILITY, UH, DOING THE MAINTENANCE, UH, THAT WE NEED TO, TO SUPPORT RELIABILITY, UH, ADDRESSING ANY ISSUES THAT COME UP, UH, AGAIN, QUICKLY. AND ONE THING WE DO WHEN WE LOOK AT, AT THAT PROACTIVE MAINTENANCE IS WE DO TRY TO SCHEDULE AS BEST WE CAN. YOU KNOW, TIMES WHEN, UH, OUR DEMAND IS LOWER. SO A WEEK LIKE THIS WHEN WE HAVE RAIN AND COOLER TEMPERATURES, UH, IS, IS A MUCH BETTER TIME FOR US TO PROACTIVELY TAKE A UNIT OFFLINE TO PERFORM MAINTENANCE, UH, THAN, YOU KNOW, OBVIOUSLY DURING THE HEAT OF THE SUMMER. SO, UH, WE DO HAVE SOME MAINTENANCE WE'LL BE DOING LATER IN THE WEEK, UH, YOU KNOW, UNDER THAT EXACT PHILOSOPHY. UH, THIS SLIDE JUST, I WON'T GO THROUGH ALL THE DETAILS HERE, UH, BUT IT DOES SHOW SOME STATISTICS ON A COUPLE OF THE, THE, THE MAJOR ISSUES THAT HAVE IMPACTED GENERATION THROUGHOUT THE SUMMER. UH, RENA GALLES THERE ON, ON THE FAR RIGHT, UM, YOU KNOW, IS THE, IS THE ISSUE THAT IMPACTED US, UH, ON THAT LAST CHART. AS FAR AS JUNE AND JULY PERFORMANCE, UH, WAS AN APPARENT, UH, UH, WARRANTY ISSUE FROM ONE OF OUR, OUR SUPPLIERS. UH, BUT, YOU KNOW, THAT UNIT IS, UH, BACK IS PRODUCING AT FULL LOAD. UM, AND IT HAS BEEN DOING THAT REALLY FOR THE LAST MONTH OR SO. MID-JULY IS WHEN THE UNIT RETURNED TO SERVICE. UH, SO WE DO CONTINUE TO WORK THROUGH A FEW UNIT ISSUES RIGHT NOW, UH, EXPECTING, UH, THE SPRUCE TWO, FOR EXAMPLE, IS OFFLINE TO EXPECT THAT TO BE RETURNED LATER THIS WEEK. UH, WE'LL CONTINUE, AS I SAID, TO PROACTIVELY ADDRESS SOME OTHER ISSUES ON OUR UNITS HERE WITH THIS, UH, PERIOD OF, OF COOLER WEATHER. I DID WANT TO TOUCH HERE AT THE END ABOUT, YOU KNOW, OUR WINTER MAINTENANCE PLAN. YOU KNOW, ALL OF OUR UNITS REQUIRE MAINTENANCE AT SOME POINT, UH, TO ENSURE RELIABILITY. YOU KNOW, WE GENERALLY PLAN FOR SUMMER RELIABILITY. THAT'S BEEN OUR PEAK PERIOD. UH, WE HAVE KIND OF MODIFIED THAT PHILOSOPHY TO ALSO LOOK AT A WINTER PEAK PERIOD. UH, AND SO AS YOU CAN SEE FROM, FROM THIS CHART, UH, AS WE WENT INTO LAST WINTER, SO, YOU KNOW, 2021 TO WINTER 2021 TO 2022, WE INTENTIONALLY AVOIDED SCHEDULING PLANNED OUTAGES DURING, UH, THAT MID-DECEMBER TO, UH, END OF FEBRUARY TIME PERIOD. WE WANTED TO HAVE ALL OF OUR UNITS AVAILABLE, UH, DURING WHAT, UH, WOULD BE ANY EXTREME WEATHER EVENTS, UH, THAT WOULD, UH, BEFALL US DURING THE WINTER. UH, AS THE TAKEAWAY BOX SHOWS, OUR UNITS DID PERFORM VERY WELL, UH, DURING THE COLD WEATHER THAT WE DID SEE IN MID-JANUARY AND ALSO IN LATE FEBRUARY. I DO SAY ONE OF THE THINGS THAT THIS, UH, CHANGE IN PHILOSOPHY DOES DO FOR US THOUGH, IS IT MEANS WE HAVE TO SCHEDULE THE SAME AMOUNT OF OUTAGES IN A SHORTER PERIOD OF TIME. SO THAT MEANS WE'RE OVERLAPPING SOME MORE OUTAGES. WE HAVE MORE, UH, CAPACITY ON OUTAGE AT CERTAIN TIMES THAN WE MAY OTHERWISE HAVE HAD IF WE WERE SCHEDULING ACROSS THE ENTIRE WINTER. SO THOSE ARE A COUPLE, UH, OF ITEMS THAT WE, AS WE WENT THROUGH THIS PAST WINTER, WE TOOK A VERY CLOSE LOOK AT. UH, IT LEADS INTO, UH, THE LESSONS LEARNED THAT WE'VE OUTLINED HERE ON THIS SLIDE. BUT AGAIN, WITH, WITH MORE OVERLAPPING OUTAGES, MORE CAPACITY ON OUTAGE AT CERTAIN TIMES OF, OF THE, UH, FALL AND SPRING, UH, YOU KNOW, WE DID NOTICE SOME, SOME OPPORTUNITIES WHERE WE HAVE TO BE VERY MINDFUL OF OVERTIME. YOU KNOW, NOT ONLY IS THAT, UH, A COST, UH, BUT IT ALSO, THE MORE HOURS THAT WE HAVE FOLKS WORKING, IT DOES PUT PEOPLE, UH, FATIGUE BECOMES [00:10:01] AN ISSUE, POTENTIAL, UM, YOU KNOW, HUMAN PERFORMANCE OR SAFETY ISSUES BECOME MORE LIKELY AS, AS FATIGUE SETS IN. SO WE DO WANNA MAKE SURE WE'RE MONITORING AND MANAGING OVERTIME VERY CLOSELY. UH, FROM A SCHEDULE STANDPOINT, WE HAVE TO BE VERY, UH, I THINK TIGHT, VERY CRISP WITH OUR OUTAGE MANAGEMENT SUPPORT AND HOW WE'RE RESPONDING TO ISSUES THAT COME UP DURING OUTAGES SO THAT WE DO NOT EXTEND THEM ANYMORE. UM, YOU KNOW, THEN, THEN AS NECESSARY TO COMPLETE THE WORK, UH, YOU KNOW, FROM A, A POSITION PLANNING, YOU KNOW, IN TERMS OF LOOKING AT HOW WE SERVE OUR COMMUNITY AND, AND THE, UH, ENERGY NEEDS OF OUR COMMUNITY DURING THAT, THAT TIME, YOU KNOW, WE DID LOOK AT, UM, HOW WE PURCHASE POWER, FOR EXAMPLE, YOU KNOW, AS WE HAVE MORE UNITS THAT ARE OVERLAPPING ON OUTAGES, WE DO HAVE TO STRATEGICALLY GO OUT TO THE MARKET AND BUY POWER, UH, TO COVER OUR POSITION FROM TIME TO TIME. SO WE LOOKED AT, UH, AND ARE CONTINUED TO REFINE HOW WE LAYER THAT STRATEGY IN SOME MAY BUY FOR THE FULL, UH, OUTAGE SEASON, YOU KNOW, THE, THE SPRING OR THE, OR THE FALL, AND THEN LAYER THAT IN WITH ADDITIONAL MONTHLY OR WEEKLY AND DAILY PURCHASES AS NECESSARY TO MANAGE INDIVIDUAL UNIT OUTAGES. SO THOSE ARE SOME OF THE, THE HIGHLIGHTS I WANTED TO POINT OUT THAT, UH, I THINK IT WAS A SUCCESSFUL, UH, WINTER FOR US. UH, BUT AGAIN, AS A, AS A LEARNING ORGANIZATION, WE ALWAYS TAKE AN OPPORTUNITY WHEN WE DO SOMETHING NEW, UH, TO LOOK THROUGH, UH, HOW IT WENT, WHAT WE LEARNED, AND HOW WE CAN IMPROVE UPON THAT PERFORMANCE FOR THE NEXT TIME WE DO IT. AND, YOU KNOW, WE'LL, WE'RE LOOKING TO HAVE A VERY SIMILAR APPROACH TO OUTAGE SCHEDULING AND, AND MAINTENANCE SCHEDULING FOR THIS UPCOMING WINTER. UH, SO THAT DOES CONCLUDE, UH, THE PREPARED SLIDES AND BE HAPPY TO ANSWER ANY QUESTIONS. THANK YOU. UM, LET ME START OFF BY ASKING, UH, A FEW, AND WE TALKED ABOUT, UH, THE FACILITIES HOLDING UP PRETTY WELL. SO IT WAS, WE'RE JUST, UH, THREE OR FOUR YOU CITED. UH, I THINK WAS ON THE SECOND OR THIRD PAGE. THE ONLY ONES WE'VE HAD PROBLEMS WITH. UH, I KNOW RIO NAGAS WAS ONE OF 'EM. AND, UH, LET'S SEE, I'M TRYING TO FIND THE OTHERS THAT YOU LISTED. OH, OKAY. SUMMERS, BRO, SPRUCE. SO WITH ALL, WERE ALL THOSE BASICALLY MINERS THAT WERE PRETTY EASY TO FIX, I WOULD SAY THESE ARE, THESE WERE THE MAJOR IMPACTS THAT CARRIED US, UH, THROUGH THE END OF JULY. UH, WE HAVE HAD, UH, SPRUCE TWO, AS I SAID, IS, IS DOWN RIGHT NOW TO ADDRESS A TUBE BLEAK OR SERIES OF TUBE BLEAKS. UH, SPRUCE ONE, UH, CAME OFF AND FOR ABOUT A WEEK, UH, WEEK TO 10 DAYS, UH, HERE IN AUGUST, UH, TO ADDRESS A TUBE LEAK SO THAT THIS IS NOT AN EXHAUSTIVE LIST. UH, I WOULD SAY THESE ARE THE, THE MAJOR IMPACTS. SO WE'VE HAD OTHER UNITS THAT HAVE, UH, EXPERIENCED PERIODS WHERE THEY WERE EITHER NOT ABLE TO PRODUCE A FULL LOAD FOR A PERIOD OF TIME OR DID HAVE TO COME OFFLINE, UH, FOR A SHORT PERIOD OF TIME TO ALLOW US TO MAKE NECESSARY REPAIRS. WOULD YOU SAY THAT IT'S BEEN AN UNUSUAL YEAR, UH, FOR REQUIRED UNNECESSARY MAINTENANCE THIS TIME OF YEAR BECAUSE OF THE HEAT AND EVERYTHING? I WOULDN'T SAY IT WAS UNUSUAL. I THINK EVERY SUMMER WE, WE HAVE ISSUES, UH, THAT WE HAVE TO DEAL WITH. UM, YOU KNOW, I WOULD SAY, UH, WE'VE SEEN TWO BLEAKS, FOR EXAMPLE, ON OUR COAL UNITS BEFORE, YOU KNOW, THE FACT THAT, UM, THAT WE DID HAVE SPRUCE ONE AND SPRUCE TWO DOWN AT THE SAME TIME FOR A TUBE BLEAK IS, IS UNUSUAL. THAT DOES NOT HAPPEN VERY OFTEN. MM-HMM. , UM, WHAT ABOUT THE TRANSMISSION LINES? HOW ARE THEY HOLDING UP, UH, IN THE HEAT AND EVERYTHING? ARE WE HAVING SOME PROBLEMS WITH, WITH TRANSMITTING THE ENERGY AROUND TOWN? I WAS GONNA PHONE A FRIEND THERE WITH MR. MEDINA. SURE. HI, GOOD MORNING. UM, RICHARD MEDINA WITH C P S ENERGY, UH, ON THE TRANSMISSION SYSTEM. WE HAVE NO ISSUES WITH THE TRANSMISSION SYSTEM, SO WE HAVE A LOT OF REDUNDANCY. WE HAVEN'T SEEN ANY, ANY ISSUES WITH THE TRANSMISSION. OKAY. UM, BUT WHAT ABOUT OUTAGES, YOU KNOW, IS, HAVE THE OUTAGES BEEN UNUSUALLY? UH, MORE THAN, UH, WE'VE EXPERIENCED IN OTHER SUMMERS ON THE DISTRIBUTION SIDE, JUST BECAUSE OF THE ENERGY USAGE AND THE, THE HEAT, IT DOES AFFECT EQUIPMENT. SO WE HAD SOME, A FEW MORE OUTAGES, BUT, UM, WE DID STAFF UP WITH ADDITIONAL CREWS JUST TO MAKE SURE THAT WE CAN RESPOND QUICKER JUST BECAUSE OF THE HEAT. OKAY. GOOD. OKAY. ARE THERE ANY OTHER A, UH, CHALLENGES, UH, LIKE KEEPING THE GAS COMING TO US OR, YOU KNOW, COAL OR ANY OF THE OTHER ENERGY, UH, RESOURCES THAT WE USE? WE'VE NOT HAD ANY, UH, IMMEDIATE IMPACTS FROM THAT. UM, YOU KNOW, NATURAL GAS, UH, HAS, WE'VE NOT HAD ANY, UH, ISSUES WITH PROCURING THE AMOUNT OF GAS WE NEED ON A DAILY BASIS. WE HAVE NOT SEEN ANY, ANY INTERRUPTIONS OR DISRUPTIONS. UM, YOU KNOW, FROM A PIPELINE PERSPECTIVE, UH, ON COAL, UH, WE HAVE SEEN, UM, OUR, OUR RAILROAD, UH, TRANSPORTER IS A LITTLE BIT BEHIND IN TERMS OF THE AMOUNT [00:15:01] OF DELIVERIES YEAR TO DATE THAT COMPARED TO WHAT WE'VE REQUESTED. UH, THEY HAVE A COUPLE OF, OF OUR TRAINS THAT ARE, ARE PARKED ON THEIR SYSTEM. UH, THEY'RE DEALING WITH, WITH SOME LABOR ISSUES AND, AND LABOR SHORTAGES. SO WE'VE BEEN, UH, WORKING WITH THEM ON AN IMPROVEMENT PLAN. BUT, UH, THAT IS NOT AN IMMEDIATE IMPACT. UH, WE, UH, BELIEVE WE HAVE A, A GOOD PATH FORWARD WITH THE RAILROAD ON THAT ISSUE. HAS THE, THE SUMMER, UH, HEAT AFFECTED OUR NUCLEAR FACILITY, OUR NUCLEAR FACILITIES HAVE, HAVE CONTINUED TO RUN, UH, THROUGHOUT THE SUMMER AT, AT FULL LOAD. OKAY. GOOD. UM, HOW ARE, ARE BASICALLY OUR ALTERNATIVE ENERGY SOURCES HOLDING UP? UH, YOU KNOW, WE'VE HAD A, A LOT OF SUN, I PRESUME THEN WE'VE GENERATED MORE THAN THE USUAL AMOUNT OF, OF, UH, SOLAR, UH, WIND ON THE OTHER HAND. HOW, HOW ARE THOSE PRODUCING? UH, I WOULD SAY THEY'RE PRODUCING, UH, AS WE'D EXPECT. UM, YOU KNOW, INDIVIDUAL UNITS HAVE, HAVE HAD, JUST AS, AS OUR UNITS HAVE HAD SOME CHALLENGES. INDIVIDUAL WIND FARMS OR SOLAR FARMS HAVE, HAVE HAD SOME MAINTENANCE ITEMS THAT HAVE COME UP AT PERIODS OF TIME OVER THE SUMMER. THEY'VE BEEN SHORTENED DURATION. UH, SO AGAIN, THEIR, THEIR TEAMS HAVE RESPONDED QUICKLY WHEN THEY'VE HAD AN ISSUE. SO, UH, WE'VE REALLY SEEN YOU NO ISSUES TO, TO SPEAK OF FROM A WIND AND SOLAR GENERATION PERSPECTIVE. THEY'VE PERFORMED WELL. OKAY. UM, HAVE WE BEEN ABLE TO GENERATE MORE POWER THAN WE'VE NEEDED TO SELL IT BACK TO THE GRID? AND, YOU KNOW, WHAT HAVE WE SEEN IN THAT AREA THIS SUMMER? UH, AT TIMES WE HAVE HAD EXCESS POWER THAT WE'VE, WE'VE SOLD BACK TO THE GRID. I WOULD SAY, UH, THE, THE LIST OF OF GENERATION IMPACTS THAT, THAT WE'VE TALKED ABOUT, UH, HAVE CERTAINLY IMPACTED THE AMOUNT OF, OF LENGTH THAT WE'VE HAD THROUGHOUT THE SUMMER. SO, YEAR TO DATE AND SUMMER TO DATE, THE AMOUNT OF EXCESS POWER THAT WE'VE BEEN ABLE TO SELL BACK HAS BEEN LESS, UH, THAN WE HAD FORECASTED, UH, MAINLY BECAUSE OF, OF THE GENERATION ISSUES. I WOULD SAY ANOTHER IMPACT THAT, THAT'S VERY CLOSE TO THAT IS ALSO THE, UH, JUST THE, THE USAGE HERE IN THE COMMUNITY WITH THE RECORD SETTING HEAT THAT WE'VE SEEN. UH, OUR COMMUNITY, WHAT WE CALL OUR NATIVE LOAD, IS FROM MAY THROUGH JULY, IS ABOUT, UH, 10% HIGHER, UH, IN TERMS OF USAGE FROM WHAT WE HAD FORECASTED. SO THAT TO SERVE THAT ADDITIONAL 10% USAGE IS TAKES A NUMBER OF MEGAWATT HOURS, UH, FROM OUR GENERATING UNITS THAT WE WOULD'VE, WE HAD ORIGINALLY FORECASTED TO SELL INTO THE MARKET IS NOW ACTUALLY SERVING OUR COMMUNITY. MM-HMM. , ARE WE LOOKING TO OBTAIN ANY SUPPLEMENTAL ENERGY BECAUSE OF HOW THE SUMMER'S GONE? UH, ARE WE GOING OUTSIDE OF OUR, OUR USUAL RESOURCES TO FIND ADDITIONAL ENERGY, UH, FROM A ADDITIONAL GENERATION CAPACITY? WE HAVE SEVERAL THINGS I WOULD SAY THAT, THAT WE'RE DOING, UM, YOU KNOW, LOOKING KIND OF NEAR AND, AND LONG TERM WHILE WE'RE CONTINUING TO WORK THROUGH, UH, OUR FLEX POWER BUNDLE INITIATIVE. SO WE DID, UH, IN MAY ANNOUNCE THE FIRST 300 MEGAWATTS. UH, WE'RE ACTIVELY NEGOTIATING THE, UH, REMAINING SOLAR, UH, CAPACITY. UH, EXPECT TO HAVE SOME ADDITIONAL CONTRACTS, UH, READY TO ANNOUNCE SOON. UH, WE'RE WORKING THROUGH ALSO, UH, THE FIRMING CAPACITY. THOSE CONTRACT NEGOTIATIONS ARE, ARE UNDERGOING. I EXPECT TO HAVE THAT, UH, CAPACITY, UH, UNDER CONTRACT, UH, LATER THIS, THIS YEAR. UH, LOOKING, YOU KNOW, LONG TERM AS WELL. UH, YOU KNOW, WE DO HAVE PILOT PROJECT, UH, FOR GEO MECHANICAL PUMP STORAGE, WHICH WE'RE EXCITED ABOUT. UH, ALSO WORKING THROUGH SOME DUE DILIGENCE, UH, ON POTENTIAL PILOT PROJECTS ASSOCIATED WITH GEOTHERMAL ENERGY. SO I THINK WE, YOU KNOW, LOOKING AT DIFFERENT OPTIONS FOR THE COMMUNITY, WE'RE VERY EXCITED ABOUT SOME OF THE, SOME OF THOSE DIFFERENT, UH, ITEMS. I WOULD SAY WE'RE ALSO CONTINUE TO LOOK AT, AT MANY OTHER OPPORTUNITIES. UH, FOLKS LIKE TO VISIT US, UH, AND, AND OFFER IDEAS, UH, SUGGESTIONS. WE ARE CONSTANTLY MEETING WITH DIFFERENT, UH, DEVELOPERS THAT MAY HAVE OTHER OPTIONS. UH, AGAIN, WHETHER IT'S, UH, RENEWABLE, UH, IN SOME CASES, UH, IT'S OTHER, OTHER TECHNOLOGIES THAT THEY'RE, THEY'RE TALKING TO US ABOUT. BUT WE CONTINUE TO LOOK AT, AT MONITOR, MONITOR THOSE OPPORTUNITIES AND TRY TO FIND, FIGURE OUT WHICH ONES MAY BE BENEFICIAL TO THE COMMUNITY. NOW, I'M SURE THAT YOU MONITOR THE PROJECTED USAGE OR THE PROJECTED OUTPUT FOR ALL OF, UH, OUR RESOURCES THAT GENERATE ENERGY. UH, DO, DO WE HAVE SOME KIND OF PERCENTAGE OF HOW WELL THEY'RE ALL PERFORMING? ARE, ARE THEY ALL PERFORMING AT 90%, 95%, 85% OF THE EXPECTED GENERATION DURING THIS TIME OF YEAR? WE DO HAVE THOSE STATISTICS. I, I DON'T HAVE THOSE OFF THE TOP OF MY HEAD, UH, FOR EACH OF THE UNITS. UM, YEAH, I, I WAS GOING BACK TO THIS SLIDE AND WE LOOK AT, ONE OF THE THINGS WE LOOK AT IS, IS OUR AVAILABILITY AND, YOU KNOW, FLEET WIDE, AGAIN, FOR THE SUMMER OF MAY THROUGH JULY, WE'RE JUST UNDER 87%. OKAY. ALRIGHT. WELL, I DON'T THINK I HAVE ANY OTHER QUESTIONS RIGHT NOW, AND I'LL BE GLAD TO HAVE SOME OF THE OTHER COMMITTEE MEMBERS. UH, YES. RUDY, YOU WANT TO ADD SOMETHING? I I DO WANNA ADD SOMETHING BECAUSE, UM, KEVIN, I THINK COVERED IT [00:20:01] ADEQUATELY. BUT WHEN YOU LOOK AT HOW WE'VE DONE MAINTENANCE OF OUR POWER PLANTS IN THE PAST, WE'VE HAD THE FULL KIND OF OFF, YOU KNOW, SHOULDER MONTH PERIOD TO DO MAINTENANCE. AND WHAT I'VE ASKED THE TEAM TO DO IS, IS TO BRING IN SOME OF OUR, UH, EXTERNAL RESOURCES THAT WE USE, SERGEANT AND LUNDY AND, YOU KNOW, BURNS AND MCDONALD. THERE, THERE ARE, THERE ARE COMPANIES THAT WE UTILIZE TO KIND OF TAKE A LOOK AT OUR GENERATION, YOU KNOW, APPROACH TO, TO MAINTAINING OUR GENERATION FLEET. I THINK WE'VE GOT TO THINK ABOUT MAINTENANCE DIFFERENTLY. UH, COUNCILMAN COURAGE, YOU KNOW, WE'VE GOT TO HAVE OUR PLANTS AT FULL CAPACITY TO THE EXTENT POSSIBLE, UH, DURING THE COLDEST TIMES OF YEAR AND THE HOTTEST TIMES OF THE YEAR. I THINK THAT MEANS THAT WE'RE GONNA HAVE TO, WE'VE KNOWN OR WHAT WE'VE THOUGHT ABOUT MAINTENANCE IN THE PAST, BUT IT'S A DIFFERENT BALL GAME TODAY, TODAY. UM, YOU KNOW, THE, THE CONTRACTORS THAT WE USE, FOR INSTANCE, ARE FACING THE SAME LABOR CHALLENGES THAT WE'RE FACING IN THAT A LOT OF THEIR MORE SEASONED EMPLOYEES ARE RETIRING. SO GUESS WHAT THAT MEANS? THAT MEANS THAT NEW, YOU KNOW, EMPLOYEES ARE COMING IN, THEY'RE HAVING TO BE TRAINED UP. SO, YOU KNOW, JUST THEIR ABILITY TO RESPOND AND RESPOND IN SOME CASES, FIGURE OUT WHAT'S GOING ON EFFECTIVELY, YOU KNOW, MIGHT TAKE A LITTLE LONGER BECAUSE THEY'RE DEALING WITH THE SAME, YOU KNOW, UH, UH, UH, LABOR CHALLENGES THAT WE ARE. SO, UH, SO I JUST WANNA MAKE SURE THAT, THAT, UH, THIS COMMITTEE UNDERSTANDS THAT WE'RE KIND OF TAKING, UH, TOP DOWN, YOU KNOW, UH, COMPLETE REVIEW OF OUR MAINTENANCE, UH, APPROACH TO ENSURE THAT WE'RE NOT MISSING SOMETHING BECAUSE WE'RE KIND OF STUCK IN THE PAST VERSUS WHAT, YOU KNOW, WHAT THE REALITY OF, OF, OF TODAY IN THE FUTURE, UH, IS GONNA BE. SO, UH, SO I, I DON'T EVER WANT, UM, C P SS ENERGY TO BE SEEN AS KIND OF RESTING ON OUR LAURELS. WE'RE GONNA CONTINUE TO CHALLENGE OURSELVES TO THINK ABOUT THE FUTURE, YOU KNOW, IN THE MOST APPROPRIATE MANNER, UH, TO ENSURE THAT OUR RESOURCES ARE ARE AVAILABLE. SO WE'RE GONNA DO THAT, YOU KNOW, WE'RE KIND OF STARTING THAT PROCESS NOW. I THINK OUR APPROACH THIS WINTER, UH, YOU KNOW, WE'LL, WE WILL CHANGE AS A RESULT OF US THINKING ABOUT, YOU KNOW, THE, THE, THE MAINTENANCE WINDOW DIFFERENTLY. UH, AND AS SOON AS WE KIND OF HAVE A HANDLE ON, ON WHAT CHANGES WE THINK ARE APPROPRIATE TO OUR MAINTENANCE, UH, APPROACH, WE'LL GO TO OUR BOARD, UH, AND COME BACK TO THIS COMMITTEE AND TALK A LITTLE BIT ABOUT WHAT WE'VE LEARNED. KNOW, JUST REMIND ME ANOTHER QUESTION I'D LIKE TO ASK. WE ALWAYS LOOK AT, UH, OUR ENERGY PRODUCTION EXPECTATIONS, AND WE TALK ABOUT THE MARGIN THAT WE HAVE AVAILABLE TO PUT OUT, UH, INTO THE GRID. SO, UH, WHAT HAS BEEN THAT MARGIN COMPARED TO LAST YEAR OR THE YEAR BEFORE? COUNCILMAN, I, I'LL TELL YOU THAT, YOU KNOW, WHEN WE RETIRED DELEY, IT FUNDAMENTALLY CHANGED OUR APPROACH TO THE WHOLESALE MARKET. UH, THE LENGTH, YOU KNOW, WAS IMPACTED THIS SUMMER. WE'VE SEEN ANYWHERE FROM 400 MEGAWATTS OF LENGTH TO A THOUSAND MEGAWATTS OF LENGTH. I'D LIKE US. I MEAN, AND THAT'S PRI THAT IS A PRIMARY, YOU KNOW, POINT ABOUT HOW WE'RE THINKING ABOUT OUR STRATEGY GOING FORWARD. SHOULD WE BE, UH, UH, PURCHASING STRATEGIC PURCHASES ON THE MARKET TO ENSURE THAT WE'RE ALWAYS AROUND 15%, YOU KNOW, UH, OF RESERVE MARGIN. THAT'S NOT HOW WE'RE DOING IT TODAY. BUT, UH, I, YOU KNOW, I'VE BEEN ASKING THIS QUESTION ABOUT, YOU KNOW, SOME DAYS MAYBE WE'RE 5% MARGIN, OTHER DAYS MAYBE WE'RE AT 20% MARGIN, DEPENDING UPON, YOU KNOW, KIND OF WHAT RESOURCES ARE AVAILABLE TO US. BUT A STRATEGY GOING FORWARD WOULD BE WE'RE ALWAYS GONNA MAINTAIN A 15% RESERVE MARGIN, EVEN, EVEN IF THAT MEANS WE'RE GONNA GO OUT IN THE MARKET AND MAKE SOME STRATEGIC, UH, PURCHASES. SO, UH, I'LL TELL YOU THIS SUMMER, WE'VE BEEN, UH, LESS RESERVE MARGIN THAN WE'VE HAD IN THE PAST. BUT IN 2018 WHEN WE RETIRED DEAL THAT THAT FUNDAMENTALLY SHIFTED OUR ABILITY TO KIND OF, YOU KNOW, TAKE IT, YOU KNOW, UH, A SIGNIFICANT ADVANTAGE OF, OF PRICES IN THE WHOLESALE MARKET. 'CAUSE WE ONLY HAVE SO MUCH, UH, EXCESS CAPACITY TO GIVE. SO I WOULD PRESUME THAT MEANS THE SAME THING IF WE RETIRE ANY SPRUCE. ABSOLUTELY. YES, SIR. OKAY. THANK YOU. UH, COUNCILWOMAN SANDOVAL? PARDON ME, CHAIRMAN. OH, OKAY. UH, I THINK I SEE CHAIRMAN MACKEY HERE FROM C P SS. THANK YOU FOR BEING HERE, CHAIRMAN, APPRECIATE YOU BEING PART OF THIS MEETING. THANK YOU. THANKS FOR YOUR LEADERSHIP THERE. THANKS FOR THE GOOD MORNING CHAIR. UH, THANK YOU FOR TODAY'S PRESENTATION. UH, RUDY, THANK YOU FOR YOUR TEAM FOR WORKING ON THAT INFORMATION THAT, THAT WE'RE LOOKING FOR REGARDING, UM, CLIENTS WHO ARE, UH, NEAR CUTOFF. SO THANK YOU VERY MUCH. UM, I HAVE, UM, JUST A COUPLE OF OF QUESTIONS ABOUT THE PLANTS THAT WERE DOWN. UM, I'M GLAD TO HEAR THAT YOU'RE GOING TO TAKE A DIFFERENT MAINTENANCE APPROACH THAT, THAT MAKES A LOT OF SENSE. UM, SO SPRUCE TWO WAS ONE OF THE ONES THAT, THAT WAS DOWN. UM, WELL, YOU SHOWED US FOUR. IS THAT ALL OF ALL THE ONES THAT HAD ANY ISSUES? GREAT. UM, SO IT WASN'T DOWN AS LONG AS SOME OF THE OTHERS, BUT, UM, IT'S, ISN'T IT ONE OF THE NEWER PLANTS OR THE NEWEST ONE, RIGHT. [00:25:01] IN YOUR, IN YOUR, UM, YES. IN YOUR PORTFOLIO MM-HMM. , THESE FIRST TWO IS, IS OUR YOUNGEST. YES. . IT MAKES IT SOUND LIKE A BABY. IS THAT, UM, SO IS THAT NORMAL TO HAVE THAT KIND OF, UH, BREAKDOWN HAPPEN? OR WAS IT DUE TO, UM, YOU KNOW, THE, THE EXTREME HEAT, UH, I THINK WE LOOK AT, AT THE DIFFERENT GENERATING UNITS AND, AND THE BOILERS? IT IS, IT'S NOT UNCOMMON TO HAVE TUBE BLEAKS. UM, I THINK WITH SPRUCE TWO, UM, IT'S HARD TO SAY I THE EXACT CAUSE OF THAT TUB LEAK OR PINPOINTED TO THE EXTREME HEAT. UH, THAT UNIT HAS BEEN RUNNING BECAUSE OF THE HEAT AND BECAUSE OF, YOU KNOW, THE NEED FOR THAT ENERGY, IT HAS BEEN RUNNING CLOSE TO FULL LOAD WHENEVER IT'S BEEN ONLINE. OKAY. UM, AND THEN THE RIO NOGALES, THAT ONE SEEMS TO HAVE LOST A LOT OF MEGAWATTS, SO OVER 600,000. UM, AND HOW DID YOU MAKE UP FOR, FOR THAT HUGE LOSS? UH, EXCUSE ME. THE FIRST THING IS, IS OUR OTHER GENERATING UNITS, YOU KNOW, AS, AS WE KIND OF TALKED AROUND WITH OUR PORTFOLIO, OUR FIRST, OUR FIRST MISSION IS TO SERVE THIS COMMUNITY. UH, ONCE WE'VE SERVED ALL OF THE ENERGY NEEDS THAT WE HAVE IN THE COMMUNITY, THAT'S WHERE WE GET THE EXCESS POWER THAT WE MAY THEN SELL ON THE WHOLESALE MARKET. UH, YOU KNOW, WE'RE ALWAYS IN, IN THE MARKET AS FAR AS LOOKING AT STRATEGIC PURCHASES. THAT WAS ONE OF THE STRATEGIES THAT WE LOOKED AT OR, OR EMPLOYED WITH THE RIO GALLES OUTAGE, IS WE DID MAKE SOME, UH, PURCHASES, UH, TO HELP COVER THAT POSITION OR THAT OUTAGE IN TERMS OF THOSE LOST MEGAWATT HOURS. SO IT'S KIND OF A COMBINATION BETWEEN THE REST OF OUR GENERATING FLEET AND STRATEGIC PURCHASES THAT ARE DESIGNED TO, TO HELP COVER OUR POSITION. WHICH ONES DID YOU SAY COVERED UP FOR THE LOSS OF NEAL? ALL, ALL OF THEM. ALL OF THEM, OKAY. YES, MA'AM. UM, SO I'M SEEING ON YOUR, UM, ON SLIDE FIVE, UM, OBVIOUSLY THE, I THINK THAT'S NEAL'S RIGHT IN THE, IN THE FIRST, UH, QUADRANT UP THERE WHERE YOU'VE GOT YOUR ACTUAL COMES BELOW YOUR, YOUR FORECAST THERE IN JUNE TO JULY. YES. THE REASON IT'S BELOW THOUGH, THE FORECAST LINE WAS THE RENO GALLON SALVAGE, BUT THEN IN YOUR GAS THEME, IT'S THE ACTUAL IS, YOU KNOW, EXPONENTIALLY LARGER THAN THE, THAN THE FORECAST. SO MY UNDERSTANDING IS THAT COMBINED CYCLE IS TOP-NOTCH EFFICIENT COMPARED TO GAS STEAM. SO I'M, I'M JUST WONDERING, DID THAT AFFECT HOW MUCH FUEL WE HAD TO BUY AND HOW MUCH THAT ENDED UP COSTING, COSTING US US? SO COMBINED CYCLES, AS YOU SAID, ARE, ARE MORE EFFICIENT. UM, WE, YOU KNOW, BY RUNNING THE GAS TEAM MORE, THEY, THEY DO USE, UH, SLIGHTLY MORE FUEL THAN DOES THE COMBINED CYCLE. UM, YOU KNOW, SOME OF THAT GENERATION, UH, SERVED OUR COMMUNITY, UH, UH, THE COST OF THAT FUEL. YOU KNOW, WE, C P S ENERGY DOESN'T MAKE MONEY, SO TO SPEAK, ON THE FUEL. THAT'S A PASS THROUGH COST TO OUR CUSTOMERS, RIGHT. UH, SOME OF THAT, UH, GAS STEAM GENERATION, UH, WAS THEN ALSO EXCESS POWER THAT WAS SOLD INTO THE, INTO THE WHOLESALE MARKET, UH, TO PRODUCE REVENUE FOR THE COMMUNITY. AND I WANT TO ADD THE, UH, THE PEAKERS AND THE, AND THE OLDER GAS STEAM UNITS COUNCILWOMAN, UH, YOU KNOW, YOU'VE SEEN IN THE NEWS THAT ERCOT IS, IS FORCING SOME OF THE OLDER PLANTS TO RUN, UH, A LOT, YOU KNOW, AT A LOT HIGHER RATE, UH, THIS YEAR THAN HAVING IN THE PAST THAT HAS IMPACTED OUR PLANTS AS WELL. SO A LOT OF THAT GAS STEAM AND THAT PEAKER EXCESS GENERATION THAT WE, YOU KNOW, UH, ABOVE AND BEYOND WHAT WE PLAN TO RUN HAS BEEN CAUSED BY ERCOT, UH, FOR RELIABILITY THAT'S FORCED THOSE PLANTS TO RUN. AND, AND I MEAN, YOU KNOW, THE, THE, IT, THE, THE CHART SHOW OUR, YOU KNOW, OUR OLDER, UH, UH, UNITS AND OUR PEAKER UNITS HAVE PERFORMED REALLY WELL THIS SUMMER. OKAY. UM, THANK YOU. AND CAN YOU REMIND ME THE PEAKER UNITS ARE WHAT? THOSE ARE THE, THE, BASICALLY THE, YOU KNOW, WE'VE GOT JET ENGINES THAT WE, WE RUN AS, AS REALLY AN INSURANCE POLICY, UH, DURING THOSE REALLY HOT, YOU KNOW, PEAK TIMES OF THE YEAR. AGAIN, THOSE ARE REALLY MEANT TO RUN A COUPLE HOURS FROM, YOU KNOW, FOUR TO SIX IN THE AFTERNOON, IN THE, IN THE SUMMER MONTHS. AND OTHERWISE THEY, YOU KNOW, THEY SIT THERE UNLESS WE ABSOLUTELY, UH, NEED 'EM THIS SUMMER. THEY'VE BEEN RUNNING PRETTY REGULARLY. THEY'RE NATURAL GAS AND WHAT? NATURAL GAS. YES, MA'AM. AND WHAT'S, UH, COMBINED CYCLE OR NO, NO, NO. THOSE ARE JUST SIMPLE CYCLE ENGINES. YEAH. THANK YOU. UM, I ALSO WANTED TO, UM, HIGHLIGHT, WELL, COULD WE GO TO YOUR SLIDE ABOUT, UH, WORK AND INJURIES? UH, SLIDE SIX. IS IT SLIDE NINE? SORRY. WHEN THESE AREN'T STAPLED, I, UH, . OH, THANK YOU. YOU'RE MUCH FASTER THAN I AM AT THAT. IT'S A NINE UPSIDE DOWN. JOHN, THAT'S NOT, UH, I JUST WANTED TO SAY THANK YOU VERY MUCH FOR MENTIONING THE HEAT ILLNESS, UH, PREVENTION. AS YOU KNOW, UM, UH, THREE [00:30:01] OF US ARE, ARE WORKING ON, ON AN INITIATIVE LIKE THAT. SO THANK YOU FOR BRINGING THAT UP. UH, DO YOU HAVE A LOT OF CREW OUTDOORS? LIKE, ABOUT HOW MANY PEOPLE WOULD YOU SAY WORK, UH, OUT OF DOORS? UH, YEAH, IT IS GONNA BE PRIMARILY, YEAH. WELL, WE, WE HAVE A LOT OF CREWS ON THE GAS AND ELECTRIC SIDE THAT ARE WORKING OUTDOORS. UM, I KNOW WE HAD TWO HEAT RELATED INJURIES WITH OUR STAFF THAT, UH, THIS YEAR, BUT WE WERE, YOU KNOW, THE WHOLE TIME WE'VE BEEN TALKING ABOUT, UH, HYDRATION AND, AND THEY'VE BEEN OUT WORKING IN THE HEAT, AND WE HAVE OUTAGES THROUGHOUT THE DAY. SO WE WERE ACTUALLY BRINGING THEM IN A LITTLE EARLY AND HAVING THEM START A LITTLE EARLIER. UM, SO WE'RE, WE'RE, WE'RE STILL GLAD THAT WE ONLY HAD TWO INJURIES. OH, OKAY. GREAT. WELL, YEAH, WITH THIS TYPE OF HEAT, I CAN'T, YES, YOU'RE RIGHT. THAT'S, THAT'S GOOD. UM, WELL, WE'D LOVE TO HEAR ABOUT YOUR, YOUR PRACTICES. UH, WHEN WE PUT THIS GROUP TOGETHER, IT'LL BE GOING TO THE COUNCIL WOMAN'S COMMITTEE, SO, OKAY. GREAT. THANK YOU VERY MUCH. THANK YOU, CHAIR. THANK YOU. COUNCILMAN COUNCILWOMAN. KABE. HDA. THANK YOU, CHAIR. UM, I HAD SOME QUESTIONS ABOUT FIVE, SLIDE FIVE, I THINK THAT YOU WELL COVERED THEM, BUT, UM, IT SORT OF LEADS INTO MY NEXT QUESTION. UH, LAST FALL, WE RECEIVED SOME BRIEFINGS ON, UM, PRECAUTIONS TAKEN AT THE PLANTS TO ENSURE THAT THEY, UH, THEY'RE PREPARED FOR ANY EXTREME WEATHER. IS THERE, CAN YOU GIVE US AN UPDATE ON THOSE, ON THOSE, UM, PRECAUTIONS? YEAH, I THINK WEATHERIZATION. YEAH. SO COUNCILWOMAN FROM A WEATHERIZATION STANDPOINT, UH, THE WHOLE WORLD HAS CHANGED. NOW ERCOT COMES AND ACTUALLY DOES INSPECTIONS ON THE MAINTENANCE THAT THEY EXPECT YOU TO DO TO PREPARE FOR THE, THE, THE EXTREME HEAT AND COLD SEASONS. SO, YOU KNOW, WE'VE HAD REAL GOOD SUCCESS WITH, UH, THE INSPECTIONS THAT HAVE BEEN DONE AT OUR FACILITIES AND ALL OF THE THINGS THAT WE TALKED ABOUT DOING AS PART OF THE, UH, THE COMMITTEE ON EMERGENCY PREPAREDNESS. YOU KNOW, WE'VE DONE THAT, AND THEN SOME, YOU KNOW. SO, UH, I FEEL GOOD THAT WE'VE RESPONDED IN THE WAY OUR COMMUNITY EXPECTS US TO, TO PREPARE OUR FACILITIES, YOU KNOW, FOR THESE, THESE EXTREME, YOU KNOW, TEMPERATURES. IT'S PROBABLY A, A MORE DETAILED QUESTION. I MAY HAVE CAUGHT Y'ALL A LITTLE BIT OFF GUARD, BUT I WONDER IF THE CHAIR MIGHT CONSIDER A, UM, AN ITEM WHERE WE GET KIND OF AN UPDATE ON THOSE, THOSE, UH, PRECAUTIONS THAT THEY WERE, WE TALKED ABOUT IN THE FALL. UM, AND THEN, YOU KNOW, I KIND OF VERY, MAYBE BASIC QUESTION, BUT, UM, HOW LONG, I MEAN, DO YOU FEEL CONFIDENT THAT WE ARE GONNA BE ABLE TO KEEP UP WITH THIS DEMAND? YOU KNOW, I'M, I'M WORRIED ABOUT, UH, IT, HOPEFULLY WITH THIS RAIN, WE, WE WON'T GO OVER A HUNDRED DEGREES ANYMORE, BUT, UM, BEFORE WE KNOW IT, WE'RE GONNA HAVE IN, UH, YOU KNOW, WINTER THAT MAY OR MAY NOT BRING ANOTHER WINTER STORM. AND IT'S JUST, YOU KNOW, EVERY SEASON, EVERY, WELL, AT LEAST FOR US, WINTER AND SUMMER COULD BRING VERY EXTREME WEATHER. AND NOW, UH, WE KNOW IT, RIGHT? WE CAN'T, I ALWAYS SAY WE CAN'T SAY WE GOT CAUGHT OFF GUARD THE SECOND TIME. ONLY THE FIRST TIME. RIGHT. SO, DO YOU FEEL CONFIDENT THAT WE CAN KEEP UP WITH THAT DEMAND? I DO. UH, YOU KNOW, WE'VE WORKED THROUGH THE SUMMER AS WE SAID, WE'VE HAD SOME ISSUES THAT, THAT WE'VE WORKED THROUGH, UH, DONE THE NECESSARY MAINTENANCE AND REPAIRS AS WE GET INTO OCTOBER. AND THAT WILL BECOME OUR, OUR NEXT OUT WHAT WE CALL OUTAGE SEASON. SO THAT WILL BE WHEN WE START TAKING, UH, UNITS DOWN FOR PLANNED OVERHAULS THAT ARE DESIGNED TO GET US THROUGH, UH, TO BUILD IN THAT RELIABILITY FOR THE PEAK WINTER SEASON, AS RUDY SAID, AND THEN ALSO SET US UP FOR, FOR NEXT SUMMER. SO I DO BELIEVE THAT, UH, OUR MAINTENANCE PLANS, I'M CONFIDENT THAT THOSE WILL ALLOW US TO CONTINUE TO MANAGE THROUGH, UH, THE REMAINDER OF, OF WHAT WE EXPECT FROM A HEAT THIS SUMMER AS WELL AS THE UPCOMING WINTER. OKAY. THANK YOU. THOSE ARE MY QUESTIONS. THANK YOU. THANK YOU. COUNCILMAN COUNCILWOMAN, ROCHA GARCIA, THANK YOU CHAIR, AND THANK YOU KEVIN AND, AND RUDY AND EVERYONE, UH, FOR THE PRESENTATION TODAY. I GOT A, A REALLY NICE UPDATE FROM MY REC APPOINTEE BY EMAIL, AND I WANTED TO, TO THANK YOU. I THANK HE'S MET WITH YOU ALL, UM, SPECIFICALLY JONATHAN AND JESSE, AND I KNOW HE'S EVEN MET WITH DOUG. I DON'T KNOW IF DOUG, DOUG'S HERE AND, AND HE'S EVEN MET WITH COUNCILMAN BRAVO. I, I JUST WANTED TO, UM, ECHO SOME SUPPORT THAT I'VE HEARD. UM, HE WAS LOOKING AT POSSIBLY A, I GUESS HE HAD PROPOSED A COMMITTEE TO, UM, HELP WITH THE EE WITH THE NEW PROGRAM. SO WHAT HIS IDEA WAS, AND, AND WHOEVER HE'S TALKED TO WAS SOMETHING SIMILAR TO THE SHIP, BUT SPECIFICALLY TO THE EE RIGHT? AND SO THAT WE CAN HAVE OUTCOMES, AND SO WE COULD, UM, DO SOME MEASUREMENTS. AND I THINK THAT DOUG SENT HIM A LINK TO, UM, SOME PROJECTS THAT ARE SIMILAR. AND SO I'M, I'M HOPING THAT YOU ALL MAYBE HAVE SOME TIME TO, TO CONSIDER THAT IT WOULD MAXIMIZE, ACCORDING TO HIM SOME CAPACITY SAVINGS. AND SPECIFICALLY WHAT I LIKE MOST IS LOOK AT LOW INCOME CUSTOMERS ACCESS THROUGH THESE PROGRAMS THROUGH A COLLABORATIVE PROCESS. SO I'M REALLY INTERESTED IN WHAT HE HAS TO SAY. I HAVEN'T BEEN ABLE TO MEET WITH HIM, UM, IN THE PAST WEEK. SO HE SENT ME AN EMAIL AND I, I GOT A LITTLE BUSY, UM, BUT, BUT LOOKING FORWARD TO THAT DISCUSSION, AND MAYBE NEXT TIME YOU MEET WITH HIM, I, I'D LOVE TO BE IN THE ROOM SO THAT WE COULD SEE WHAT, WHAT THE PROGRESS IS ON THAT. AND THEN ON SLIDE FIVE, [00:35:01] UM, THANK YOU FOR GOING INTO THE DETAIL ON THE PEAKER. I WAS, I WAS WONDERING ABOUT THAT. IS THE DATA FOR SOLELY BASED ON THE SPRUCE PLANT? YES. SPRUCE ONE AND SPRUCE TWO. OKAY. AND THEN THE GAS STEAM SUPPLY THAT WAS PRODUCED, IT, IT SEEMS LIKE THERE WAS A LOT MORE THAN WAS FORECASTED. IS IT BASED ON SEVERAL PLANTS? YES. THAT, THAT GAS STEAM CATEGORY WOULD BE OUR TWO SUMMERS UNITS AND THE THREE, UH, BROING UNITS, BROING ONE, TWO, AND THREE. OKAY. AND THEN SIMILAR TO COUNCILMAN, UH, KAVIA ARDS QUESTION, I WAS WONDERING WHAT THE PLAN IS FOR THE COULTER MONTHS, BECAUSE IF WE'RE GONNA BE GENERATING SUBSTANTIALLY LESS POWER, RIGHT? UM, AND SO I'M, I'M SURE YOU ALL PROBABLY HAVE AN UPDATE MAYBE FOR THE, FOR THE NEXT SCORE, BUT I'D BE INTERESTED IN THAT. AND THEN MY FINAL QUESTION IS ON SLIDE SEVEN, YOU SAY THAT SOME REPAIRS WERE MADE. DO YOU HAVE AN IDEA OF MAYBE WHAT ADDITIONAL MAINTENANCE MIGHT BE REQUIRED AS WE MOVE INTO THE, MOVE INTO THE WINTER MONTHS? FOR EACH OF THE, FOR EACH OF THE PLANNED OUTAGES THAT WE'LL BE STARTING TO CYCLE THROUGH AS WE GET INTO OCTOBER? EACH OF THOSE HAS A, IT'S A VERY DETAILED SCHEDULE WITH A NUMBER OF DIFFERENT ITEMS. SOME, UM, SOME ARE REPAIRS TO ISSUES THAT LINGERING ISSUES. SOME ARE, UH, WHAT WE WOULD CALL PREVENTIVE MAINTENANCE. UH, WE'RE, YOU KNOW, PER THE ORIGINAL EQUIPMENT MANUFACTURER'S SCHEDULE, WE, WE GO IN AND, AND DO CERTAIN INSPECTIONS, UH, AND OTHER THINGS TO ENSURE THAT THE, THAT PIECE OF EQUIPMENT IS, IS FUNCTIONING PROPERLY. UH, AND IF WE FIND AN ISSUE, THEN, THEN WE WILL ADDRESS IT, YOU KNOW, ON THE SPOT THERE. OKAY. WONDERFUL. THANK YOU. THOSE ARE MY QUESTIONS, CHAIR. THANK YOU. THANK YOU. COUNCILMAN. COUNCILMAN BRAVO, DO YOU HAVE ANY QUESTIONS? I DO. THANK YOU, CHAIR. UH, I THINK MAYBE, OH, NO, WHAT SLIDE AM I ON? UM, THERE WAS A SLIDE HERE THAT SAYS THAT, UH, FLEET SUMMER AVAILABILITY HAS BEEN 86.6%, AND I'M WONDERING HOW THAT COMPARES TO PREVIOUS SUMMERS. LEMME FOLLOW UP WITH THAT. YEAH, WELL, I'LL HAVE TO, I DON'T HAVE THE NUMBER OFF THE TOP OF MY HEAD, SIR. YEAH. SO I'LL HAVE TO FOLLOW UP WITH THAT NUMBER. DO YOU ALL HAVE A GENERAL FEEL FOR, DID YOU HAVE A LITTLE BIT LESS AVAILABILITY THIS SUMMER COMPARED TO PREVIOUS? OR IS IT, WAS THIS SUMMER FAIRLY NORMAL FOR YOU? UH, ANECDOTALLY, I THINK WE'VE HAD MORE, UH, EVENTS. UH, WHAT, WHAT I, WHAT WE'VE GOT IN TERMS OF THE NUMBERS IS THE DURATION. IN THE PAST, WE MAY HAVE HAD FEWER EVENTS THAT MAY HAVE LASTED LONGER OR AFFECTED MORE MEGAWATTS, SO. GOT IT. THAT'S HELPFUL. WE'LL GET YOU THE DETAILED ANSWER. THAT'S HELPFUL. I, I DO WANT TO TAKE THIS OPPORTUNITY TO SAY THAT, UM, SINCE WE'RE WE'RE DISCUSSING, UM, YOU KNOW, BEING ABLE TO HAVE, UH, ADEQUATE POWER SUPPLY, UM, THAT WE DID, THIS COUNCIL DID APPROVE, UH, AN R F P TO GO OUT TO PRODUCE A HUNDRED PERCENT SOLAR POWER FOR MUNICIPAL, UH, FOR MUNICIPAL ENERGY USE. AND THAT HASN'T GONE OUT YET. AND WE, IT WAS SEVERAL MONTHS AGO THAT WE APPROVED IT GOING OUT. AND I DO WANT TO CONTINUE TO STAY ON STAFF ABOUT GETTING THAT SOLAR R F P OUT. I THINK THAT IT'S IMPORTANT BECAUSE I WOULD LIKE TO SEE SOME OF THAT SOLAR BUILT OUT TO SUPPORT THIS GENERATION CAPACITY BEFORE OUR PEAK DEMAND NEXT SUMMER. AND THAT'S WHY I CONTINUE TO STAY ON STAFF ABOUT GETTING THAT OUT. AND AS SOON AS IT IS OUT, I'M GONNA BE LOOKING TO C P S ENERGY TO HELP US, UH, CLOSE SOME OF THOSE DEALS. UM, THEN I DO WANT TO ASK, UM, I HAVE SEEN THAT, YOU KNOW, CLEARLY NATURAL GAS HAS AFFECTED OUR PRICES, UM, AND THE COST TO THE END CUSTOMER. AND I'VE SEEN THAT THERE ARE COUNTRIES IN EUROPE THAT HAVE BEGUN HOARDING NATURAL GAS IN PREPARATION FOR THE WINTER. AND I'M WONDERING WHAT C P S ENERGY IS DOING TO MAKE SURE THAT YOU HAVE SECURED ADEQUATE NATURAL GAS SUPPLIES AT, UM, YOU KNOW, AT, AT GOOD PRICES TO GET US THROUGH THE WINTER? SO PART OF OUR STRATEGY, I THINK, AS YOU'RE SEEING WITH THE EUROPEAN COUNTRIES, IS TO HAVE GAS IN STORAGE. UH, WE HAVE, UH, BUILT OUR STORAGE. I FEEL VERY COMFORTABLE WITH WHERE WE ARE IN TERMS OF OUR STORAGE C P S ENERGY STORAGE. I THINK WHEN YOU LOOK, UH, NATIONALLY, UH, ACROSS THE UNITED STATES, WE ARE, STORAGE IS DOWN, UH, LOWER THAN WE, WE TRACK HOW CURRENT STORAGE LEVELS COMPARE TO THE FIVE YEAR AVERAGE. UH, WE'RE BELOW THAT AS, AS A NATION. SO TO ME, WHAT THAT INDICATES IS, IF WE GET INTO AN EXTREME WINTER, UH, WITH THAT LOWER STORAGE AND WHAT WE WOULD DESIRE AS A, AS A COUNTRY THAT I THINK IN IS AN INDICATOR THAT WE'LL HAVE A RISK OF CONTINUING TO SEE HIGH PRICES THROUGHOUT THE WINTER. UH, C P S'S HAS SAID, WE'VE, WE'VE BUILT OUR STORAGE AND I'M VERY COMFORTABLE WITH WHERE WE'RE AT, UH, ON OUR STORAGE LEVEL. LET ME ADD, BECAUSE KEVIN'S NOT GONNA, GONNA, GONNA GIVE HIS TEAM, YOU KNOW, UH, HIMSELF AND [00:40:01] HIS TEAM, THE CREDIT THAT THEY DE THEY DESERVE. AS WE'VE BEEN WORKING THROUGH SOME OF THE COMMERCIAL AGREEMENTS THAT WE'VE REACHED WITH, UH, SOME OF OUR SUPPLIERS FROM THE WINTER STORM URI EVENT, WHAT THAT'S DONE IS CREATED ADDITIONAL SUPPLIERS. SO WE HAVE REALLY, UH, INCREASED THE, THE, THE, THE COMPANIES THAT WE'RE DOING BUSINESS WITH ON THE GAS SUPPLY. AND THAT DIVERSITY PUTS US IN A BETTER POSITION, UH, OVER THE LONG TERM AS WELL. UH, AND WE'RE GONNA BE DOING BUSINESS, YOU KNOW, WITH FOLKS THAT, UH, YOU KNOW, THAT, THAT I FEEL, YOU KNOW, A LITTLE MORE CONFIDENT AREN'T GONNA TAKE ADVANTAGE OF US THE WAY, YOU KNOW, SOME COMPANIES DID DURING WINTER STORM URI. SO I THINK THAT INCREASE IN THE DIVERSITY OF SUPPLIERS IS ALSO A, UH, A NATURAL HEDGE ALONG WITH THE STORAGE AND, YOU KNOW, SOME OF THE OTHER THINGS THAT WE DO TO, TO FIRM UP OUR SUPPLY. SO, UH, I JUST WOULD THROW THAT IN THERE AS ANOTHER ELEMENT OF OUR, OF OUR OVERALL, YOU KNOW, IMPROVEMENT IN THAT AREA. THOSE ARE ALL MY QUESTIONS. THANK YOU. I'VE GOT, UH, A COUPLE OF OTHERS. BASED ON THE, UH, EXPERIENCE YOU'VE HAD THIS SUMMER, HAVE THERE BEEN SOME LESSONS LEARNED? UH, HAVE WE IDENTIFIED SOME, UH, CONCERNS OR PROBLEMS OR SOLUTIONS THAT IF WE GO THROUGH ANOTHER SUMMER, LIKE THIS NEXT YEAR, THAT WE THINK WE'LL BE ABLE TO IMPROVE OUR SITUATION, WHETHER IT'S THE CONTINUING FLOW OF ENERGY, THE MAINTENANCE, THE PRODUCTION OR, OR THE DELIVERY ARE, ARE WE GOING TO BE ABLE TO SUSTAIN NEXT YEAR? HAVE WE LEARNED ANYTHING FROM THIS YEAR TO HELP US IMPROVE OURSELVES? JUST LIKE WE DID WITH WINTER STORM URI, WE LOOKED FOR PROBLEMS, WE TRIED TO MAKE SURE, HOW CAN WE ANTICIPATE THOSE HAPPENING AGAIN AND IMPROVE OURSELVES SO THAT THEY DON'T HAVE WE GONE THROUGH A SIMILAR EXPERIENCE THIS SUMMER? I WOULD SAY WE, WE CERTAINLY WILL. UM, AND FOR CERTAIN EVENTS, UH, AS THOSE EVENTS HAVE HAPPENED, WE'VE GONE THROUGH AND, AND ANALYZED EACH OF THOSE EVENTS. THE REASON I SAY WE WILL, AS FAR AS COMPLETING THE EXERCISES, WE'RE NOT DONE WITH SUMMARY YET. UH, SO I THINK THAT'D BE ANOTHER TOPIC PERHAPS, THAT WE WOULD COME BACK AND, AND TALK WITH YOU AFTER THE SUMMER AS WE'VE REALLY HAD A CHANCE TO ANALYZE EVERYTHING THAT HAPPENED THROUGHOUT THE SUMMER AND THEN TALK THROUGH WHAT THOSE LESSONS LEARNED ARE AND OPPORTUNITIES. YEAH, I THINK THAT WOULD BE VERY GOOD TO HEAR FROM Y'ALL AND, AND A LITTLE SELF-ANALYSIS AND, UH, WHAT WE'RE GONNA DO TO IMPROVE THAT. RUDY, I'VE GOT TWO QUESTIONS FOR YOU. YES, SIR. UH, UH, AS, UH, THE LEADER C P S ENERGY RIGHT NOW, IN YOUR OPINION, WHAT ARE THE MAIN CONTRIBUTORS TO PEOPLE'S SKY HIGH BILLS? WELL, IT'S TWO MAIN CONTRIBUTORS. NUMBER ONE, THE, YOU KNOW, THE CONSISTENT A HUNDRED DEGREE TEMPERATURES FROM MAY TO, YOU KNOW, THE END OF JULY. I MEAN, YOU KNOW, I KNOW THAT FOR ENERGY COMPANIES, OUR PEAK EARNING TIME IS THIS TIME OF YEAR, BUT I SURE AM THANKFUL FOR THE, FOR THE COOLER WEATHER OVER THE LAST COUPLE OF WEEKS, UH, OUR CUSTOMERS HAVE SUFFERED BECAUSE OF THOSE HIGH TEMPERATURES, UH, AND THE HIGH BILLS. AND, AND WE'VE BEEN WORKING WITH THEM TO TRY TO HELP THEM, UH, THROUGH THAT. UH, AND THEN WHEN YOU LAYER ON TOP OF THE TEMPERATURE, THE HIGH NATURAL GAS PRICE, UM, THOSE TWO FACTORS, UH, ARE THE PRIMARY DRIVERS OF THE HIGH PRICES THAT OUR CUSTOMERS HAVE SEEN THIS SUMMER. OKAY. YOU KNOW, I'VE HEARD FROM SOME PEOPLE IN MY COMMUNITY WHO'VE SAID, YOU KNOW, I'VE KEPT MY THERMOSTAT AT 75 DEGREES LAST YEAR AND THIS YEAR, BUT MY BILL IS SO MUCH MORE FOR 75 DEGREES. CAN YOU EXPLAIN THAT? WELL, IT'S, UH, ON AVERAGE EVEN, UM, IF CUSTOMERS DID EXACTLY THE SAME THINGS, THEIR CONDITIONERS ON AVERAGE ARE RUNNING ABOUT TWO TO THREE HOURS MORE A DAY, UH, THAN THEY NORMALLY WOULD WHEN IT'S A HUNDRED DEGREES. YOU KNOW, AGAIN, 105, 109, YOU KNOW, WHEN YOUR AIR CONDITION SYSTEM IS MEANT TO COVER ABOUT A 20 DEGREE DIFFERENCE OUTSIDE, NATURALLY IT'S GONNA RUN MORE. AND SO EVEN IF YOU TURN YOUR, YOUR AIR CONDITION UP TO 80 DEGREES, IT'S STILL GONNA, YOU KNOW, RUN MORE THAN IT WOULD OTHERWISE, JUST BECAUSE OF THE EXTREME, YOU KNOW, TEMPERATURES WHEN, WHAT, WHAT I'VE TRIED TO TELL CUSTOMERS WHO, WHO'VE, UM, YOU KNOW, ASKED ME THE SAME, VERY SAME QUESTION. 'CAUSE I BELIEVE ME, I'VE TALKED TO A THOUSAND CUSTOMERS THIS SUMMER ABOUT THEIR BILLS. MOST OF THEM, MY FRIENDS WHO, YOU KNOW, AREN'T REAL PLEASED RIGHT NOW. UM, I'VE TELL, I TELL 'EM, EVEN WHEN YOU DO WHAT WE'VE ASKED YOU TO DO, WHAT THAT MEANS IS YOUR BILL IS NOT AS HIGH AS HIGH AS IT COULD HAVE BEEN OTHERWISE. SO, SO THE SAVINGS IS STILL THERE, BUT THE FACT THAT THEY'RE RUNNING, THAT THE AIR CONDITION IS RUNNING MORE, JUST BY THE NATURE OF HOW THE SYSTEM WORKS, MEANS THAT YOU'RE GONNA HAVE HIGHER, HIGHER BILLS OVERALL. SO, UH, THERE ISN'T SOME, YOU KNOW, UH, OTHER ANSWER, SOME NUANCED ANSWER. IT'S THE EXTREME HEAT COUPLED WITH THE HIGHER NATURAL GAS PRICE THAT IS ABSOLUTELY DRIVING THE HIGHER BILLS. SO THEY'RE ACTUALLY USING MORE ENERGY, EVEN THOUGH THEIR THERMOSTAT MAY BE YES, SIR. EXACTLY THE WAY IT WAS ALL THIS TIME. YES, SIR. AND THEY DON'T REALIZE THAT. YES, SIR. AND THEN THE COST OF THAT ENERGY THAT, THAT YOU BUY TO DRIVE THAT ELECTRICITY IS SKY HIGH RIGHT NOW. YEAH. THEIR FUEL COST IS HIGHER. FUEL COST. YES, SIR. OKAY. ALRIGHT. [00:45:01] UH, ANY LAST QUESTIONS FROM ANY OF THE OTHER COMMITTEE MEMBERS? OKAY. HEARING NONE, THANK YOU VERY MUCH. THANK YOU. WE APPRECIATE THE UPDATE ON THE SITUATION AND, UH, NOW I'D LIKE TO, OH, YES, THANK YOU, CHAIRMAN, PLEASE. HEY, THANK YOU ALL. UH, AND I JUST LIKE TO SHARE, I I WANT TO COME HERE TODAY BECAUSE I WANT TO LISTEN TO YOU ALL'S CONCERNS, AND WE ARE ON TASK, WHAT OUR EXPECTATIONS IS THE SAME AS YOU ALL ON THIS, BECAUSE EVERY MONTH I ASK THE C P S ENERGY, THE SAME QUESTIONS THAT YOU ASKED ME. I ASKED RUDY, AND I WANT Y'ALL TO KNOW THAT EACH MONTH WE, WE ARE GONNA START IN SEPTEMBER PUTTING OUR WINTERIZATION ON THE BOARD AGENDA EACH MONTH SO THEY CAN EXPLAIN THINGS THAT, THAT MAKE SURE THAT DOESN'T HAPPEN. WHAT HAPPENED LAST TIME. AND WE CANNOT CONTROL WHAT ERCOT TAKE FROM US, BUT WE CAN CONTROL, UH, OUR PREVENTIVE MAINTENANCE PLAN, MAKING SURE THAT'S UP AND ALL THE THINGS, BECAUSE WHAT THEY DIDN'T MENTION, WE HAVE TWO SEASONS. WE HAVE A HEAT SEASON AND WE HAVE A WINTER SEASON UP NORTH. THEY ONLY HAVE ONE SEASON AND THEY JUST CONCENTRATE ON THAT. BUT OUR HEAT SEASON, WE DO IT THE SAME WAY AS WE DO OUR, UH, WINTER SEASON, WE WILL BURN OUR UNITS UP. AND PEOPLE DON'T UNDERSTAND THAT. THAT'S WHY WE HAVE TWO SEASONS, BECAUSE WE HAVE TO WINTERIZE THINGS BEFORE FOR OUR WINTER SEASON. MAKE SURE THAT IT'S HEATING IN THERE. YOU SEE THE LITTLE TENSION THINGS OVER TO STOP IT FROM DOING THAT. OUR CAVES THAT WE HAVE FOR OUR GAS THAT WE STORE AND OUR TANKS THAT WE STORE, WE DIDN'T HAVE IT NOW, NOW WE HAVE AT LEAST 12 DAYS OF IT. IF YOU SEE OUR PLAN, WE HAVE 12 DAYS IN PREPARATION FOR THAT. SO WE'RE GONNA STAY ON TOP OF THAT. AND I WANNA THANK YOU ALL BECAUSE YOU ALL CONFIRMING THE SAME THING THAT WE ARE DOING AT CITY COUNCIL MEETING. AND I THINK BOTH OF US CONTRIBUTE, CONTINUE TO CONTRIBUTE TO THIS. I THINK THAT WE'RE GONNA DO THE BEST WE CAN IN SUSTAINING AND, AND AFFORDABLE AND RELIABLE ENERGY FOR THE CITIZENS OF OUR C P S ENERGY. THANK YOU ON THE BOARD, AND I KNOW Y'ALL HAVE A MEETING. GOOD LUCK AT YOUR MEETING TODAY. THANK YOU VERY MUCH. AND NOW WE'RE GONNA GO AHEAD AND HEAR OUR PRESENTATION FROM, UH, SAN ANTONIO WATER SYSTEMS. UH, AND IT'S A BRIEFING ON THE STATUS OF DROUGHT MANAGEMENT ACTIVITIES, THE PERFORMANCE OF DIVERSIFIED WATER SUPPLIES AND EFFORTS TO ENFORCE WATER RULES FOR STAGE TWO AND MAYBE POTENTIALLY STAGE THREE, ALTHOUGH WE ALL HOPE NOT. SO THANK YOU VERY MUCH FOR BEING HERE TODAY. UH, CHAIR PUENTE, UH, OUR C E O PUENTE. THANK YOU. UH, GOOD MORNING, CHAIRMAN. COURAGE, UH, COUNCIL MEMBERS, UH, AFTER YOU POSTED THE AGENDA FOR THESE MEETINGS, YOU ASKED SOME ADDITIONAL QUESTIONS AND MOST OF THOSE QUESTIONS, UH, WE'RE GOING TO INCORPORATE INTO THE TWO PRESENTATIONS THAT WE HAVE, ALTHOUGH SOME OF 'EM, UM, I WOULD WANT TO ADDRESS BECAUSE THEY'RE A LITTLE BIT, UH, DIFFERENT. SO YOU'LL HEAR KAREN GUZ, UH, WE CONSIDER HER A NATIONALLY RECOGNIZED WATER CONSERVATION EXPERT. TALK ABOUT, UH, DIFFERENT THINGS THAT YOU ASKED IN SOME OF YOUR QUESTIONS ABOUT THE TRIGGERS, UH, ON THE STAGES AND HOW WE GO IN AND OUT OF THEM. UH, BUT OVERALL, YOU ALSO ASKED A QUESTION ABOUT OUR WATER, UH, SOURCES. UH, WE HAVE 15 DIFFERENT WATER PROJECTS FROM NINE SOURCES. UH, FOR EXAMPLE, YOU'LL SEE SOME CITIES HAVE ONE SOURCE, AND THAT'S ESSENTIALLY A BIG LAKE THAT'S, UH, SOMEWHERE OUT, UH, FAR FROM THEM, A BIG RESERVOIR. BUT WE HAVE, UH, WATER COMING FROM FOUR DIFFERENT AQUIFERS, A PREMIER, UH, DESALINATION PLANT IN SOUTHERN BEAR COUNTY, THE NATION'S LARGEST RECYCLED WATER SYSTEM, AND THE NATION'S LARGEST UNDERGROUND STORAGE OF WATER. UH, YOU ALSO ASKED, UH, IF THESE DIFFERENT WATER SOURCES COST OUR CUSTOMERS DIFFERENT, UM, DIFFERENTLY. AND THE ANSWER IS NO, THEY DON'T. ALL OF OUR CUSTOMERS PAY THE SAME AMOUNT FOR ONE GALLON OF WATER. THE ONLY DIFFERENCE IS IF THEY LIVE IN THE CITY OR OUTSIDE THE CITY LIMITS. YOU ALSO ASKED IF IT COSTS SOILS DIFFERENTLY ON THESE DIFFERENT SOURCES OF WATER. AND THE ANSWER IS YES. UH, FOR EXAMPLE, UH, SOME OF THE WATER'S MUCH MORE EXPENSIVE. UH, VISTA RIDGE WATER'S MUCH MORE EXPENSIVE. UH, DESALINATION WATER'S EXPENSIVE BECAUSE OF THE ENERGY TO TREAT IT AND, AND DELIVER IT. UH, EDWARDS WATER, FOR EXAMPLE, RIGHT HERE, DOWNTOWN, MOST OF THAT WATER COMES FROM MARKET, UH, STREET RIGHT UP THE, UH, ABOUT A FEW BLOCKS FROM HERE. SO IT'S VERY INEXPENSIVE TO DELIVER THAT WATER TO THE DIFFERENT CUSTOMERS, NOT ONLY IN DOWNTOWN, BUT THE NEIGHBORHOODS SURROUNDING DOWNTOWN. A LOT OF THE OTHER QUESTIONS THAT YOU ASKED, UH, COUNCILMAN COURAGE, UH, WILL BE ANSWERED IN OUR WATER MANAGEMENT PLAN THAT GETS UPDATED EVERY FIVE YEARS. AND THIS YEAR IS THE FIFTH YEAR. UH, SO DONOVAN BURTON, OUR VICE PRESIDENT OF WATER RESOURCES, IS ACTIVELY WORKING WITH THAT. UH, IT'LL BE, UH, BEFORE OUR BOARD LATER IN THE FALL, AND WE WOULD LOVE TO PRESENT IT TO THIS COMMITTEE AND THE FULL COUNSEL WHEN THAT TIME COMES. UH, YOU'LL ALSO HEAR FROM, UH, MARY BAILEY, UH, ONE, ANOTHER ONE OF OUR VICE PRESIDENTS, UH, UH, MARY, WITH THE HELP OF THE INDIVIDUALS THAT YOU APPOINTED TO THE RAID ADVISORY COMMITTEE, UH, FINISHED UP THEIR PROCESS. UH, THEY CAME WITH A, UH, CONSENSUS AGREEMENT. UH, THERE WAS A LOT OF, UH, ISSUES, UH, [00:50:01] BETWEEN RECYCLED CUSTOMERS, INDUSTRIAL CUSTOMERS, COMMERCIAL CUSTOMERS, OBVIOUSLY RESIDENTIAL CUSTOMERS. BUT AS I MENTIONED, A CONSENSUS WAS REACHED AND THEY ALL AGREED THAT WHAT THEY WERE GONNA BRING FORWARD TO OUR BOARD AND ULTIMATELY TO COUNCIL, WAS A NEW RATE STRUCTURE THAT ESSENTIALLY, UH, BENEFITS 83% OF OUR WATER CUSTOMERS. THEY WILL SEE LOWER BILLS, A HUNDRED PERCENT OF OUR WASTEWATER CUSTOMERS WILL SEE LOWER BILLS. AND THIS IS REVENUE, REVENUE NEUTRAL, NO RATE INCREASE, UH, NEEDED FOR THAT. SO WITH THAT, COUNCILMAN COURAGE, UNLESS THERE'S ANY, UH, QUESTIONS I'D LIKE, UH, KAREN TO, UH, START HER PRESENTATION. THANK YOU. GOOD MORNING. SO I'M GONNA TALK TO YOU TODAY ABOUT THE CURRENT DROUGHT SITUATION. I WISH I COULD SAY THE DROUGHT IS OVER BECAUSE WE ALL ENJOYED RAIN AND WE'RE EXPECTING MORE. UNFORTUNATELY, NO, NOT QUITE. UH, WE'RE HOPING THE WEATHER HAS NOW TURNED THOUGH AND IS GOING TO BE LESS UNPLEASANT FOR US AND THAT WE GET MORE RAIN AND WE DO EVENTUALLY HAVE THE DROUGHT THAT WE'RE EXPERIENCING TODAY LIFT. SOME OF THE THINGS I'M GOING TO TALK ABOUT ARE THE CHALLENGES ASSOCIATED WITH THE EXTREME WEATHER THAT WE'VE HAD, THE HEAT, THE LACK OF RAIN. AND I'M GONNA TALK ABOUT THE TOOLS WE USE TO MANAGE THEM AND COVER SOME OF THE MINUTIAE THAT CAN BE CONFUSING FOR THE PUBLIC DISTINCTIONS BETWEEN THE RULES. THE EDWARDS AQUIFER AUTHORITY HAS ON PERMIT HOLDERS LIKE SAWS VERSUS THE CITY ORDINANCE THAT PERTAINS TO PEOPLE WHO LIVE IN OUR COMMUNITY. BUT I WANNA MENTION A KEY MESSAGE THAT I'M GONNA TRY TO REPEAT SEVERAL TIMES. WE TAKE THIS DROUGHT VERY SERIOUSLY AT SAN ANTONIO WATER SYSTEM, BUT WE'RE NOT IN A SUPPLY CRISIS. OTHER UTILITIES ACROSS THE UNITED STATES CAN'T SAY THAT. YOU MAY HAVE HEARD NEWS STORIES ABOUT PLACES THAT ARE VERY CONCERNED ABOUT A LOOMING SUPPLY CRISIS SHOULD THE CURRENT DROUGHT CIRCUMSTANCES CONTINUE ACROSS MUCH OF THE US. FORTUNATELY FOR SAN ANTONIO, THAT'S NOT WHAT WE'RE FACING. IT IS SERIOUS. ANYTIME IT GETS THIS BAD, WE TAKE IT VERY SERIOUSLY. BUT THE GOOD NEWS FOR OUR COMMUNITY IS THAT WE ARE NOT WORRIED THAT WE AREN'T GOING TO HAVE WATER SHOULD THIS CONTINUE. SO THIS IS A PICTURE THAT'S PRE SOME OF THE RAINS THAT HAVE BEEN ACROSS TEXAS, BUT IT DOESN'T LOOK GOOD FOR A LOT OF THE UNITED STATES. THIS IS THE US DROUGHT MONITOR MAP. IT DOESN'T REFLECT ANYTHING ABOUT SUPPLIES. INTERESTINGLY, YOU KNOW, THERE ARE MANY DEFINITIONS OF DROUGHT AND WHAT THIS REFLECTS IS LACK OF RAIN, LACK OF SOIL MOISTURES ACROSS A LOT OF THE UNITED STATES. AND YOU'LL SEE THAT TEXAS, IF YOU'VE BEEN WATCHING THIS MAP, HAS GETTING BEEN GETTING REDDER AND REDDER. PROBABLY WHEN WE GET AN UPDATE, PARTS OF TEXAS WILL LOOK BETTER. WE KNOW THERE'VE BEEN SEVERE RAINS IN SOME PARTS OF OUR STATE, AND SO IT WILL START TO LOOK LESS RED, I THINK, AND THEN AS FALL GOES ON. BUT A KEY MESSAGE IS THAT SAN ANTONIO HAS BEEN PREPARING FOR THIS. UH, WE'VE HAD A HEADSTART ON A LOT OF THE UNITED STATES BECAUSE WE HAD TO, UH, SOME PEOPLE MIGHT REMEMBER THIS SAN ANTONIO EXPRESS NEWS HEADLINE FROM THE 1990S THAT WAS REALLY STARK AT THE TIME WHEN WE WERE 100% DEPENDENT ON THE EDWARDS AQUIFER FOR ALL OF THE WATER FOR THIS COMMUNITY. HEARING THAT THERE WERE GOING TO BE PUMPING LIMITS WAS, YOU KNOW, REALLY BAD NEWS FOR THE COMMUNITY AND CAUSED A HUGE CONSTERNATION. BUT ONE OF THE THINGS I TELL PEOPLE ACROSS THE COUNTRY WHEN I TALK ABOUT OUR STORY OF WATER IN SAN ANTONIO IS THAT VERY SMART PEOPLE IN THE COMMUNITY AT CITY COUNCIL AND PEOPLE WHO WORKED WITH WATER QUICKLY DECIDED THAT THE WATER WE ALREADY HAD WAS GONNA BE A VERY VALUABLE RESOURCE AND WE WERE GONNA USE IT BETTER. SAN ANTONIO WAS ONE OF THE FIRST PLACES IN THE COUNTRY TO HAVE A WATER PLAN THAT RECOGNIZED CONSERVATION AS A LONG-TERM SUPPLY. WE TAKE IT FOR GRANTED THAT FOR DECADES IT'S BEEN NOT LAWFUL TO WASTEWATER IN SAN ANTONIO YET THERE ARE A LOT OF PLACES IN THE US WHERE THAT'S STILL NOT TRUE. SO WHAT THAT HAS LED TO OVER THE YEARS IS WELL ESTABLISHED CONSERVATION ETHICS AND PROGRAMS, A GREATLY REDUCED PER CAPITA DEMAND, AND ALSO A BIG INVESTMENT IN SUPPLY DIVERSIFICATION THAT I'M GONNA TALK ABOUT AND SHOW YOU THE, THE END RESULT OF THAT. WE ARE NO LONGER 100% DEPENDENT ON THE EDWARDS AQUIFER. ANOTHER ASSET THAT WE HAVE GOING INTO ANY DROUGHT OR REALLY ANY CHANGE IN CIRCUMSTANCE PERTAINING TO WATER, IS OUR ACTIVE COMMUNITY ENGAGEMENT. THAT HAS BEEN A 365 DAY A YEAR EFFORT TO ENGAGE WITH OUR COMMUNITY ABOUT ALL THINGS WATER, TO HAVE THESE OPEN CHANNELS OF COMMUNICATION SO THAT WHEN WE HAVE TO ASK FOR A CHANGE FOR THEM TO RESPOND TO SOMETHING, WE HAVE THAT ABILITY TO REACH THEM PERSONALLY. THAT ALSO LEADS TO THE KEY OF COMMUNITY SUPPORT. PEOPLE VALUE WATER IN SAN ANTONIO, THEY TAKE IT VERY SERIOUSLY. IF THEY [00:55:01] SEE IT RUNNING DOWN THE STREET, THEY'RE GOING TO CALL US. AND THAT'S A GOOD THING. WE APPRECIATE THAT WE HAVE A HIGH WATER IQ IN SAN ANTONIO, AND THAT'S WHY WE CAN MAKE THE INVESTMENTS WE NEED TO. SO ALL OF THE INVESTMENTS THAT WE'VE MADE HAVE LED TO THIS REMARKABLE CHANGE THAT YOU SEE IN THIS PIE CHART WHERE THE EDWARDS AQUIFER IS PROJECTED TO BE IN THIS YEAR, SLIGHTLY OVER HALF OF THE WATER THAT WE SUPPLY FOR OUR CUSTOMER NEEDS. THAT IS A, A, A TREMENDOUS DIFFERENCE FROM NOT THAT LONG AGO WHEN IT WAS A HUNDRED PERCENT. UH, TODAY THE VISTA RIDGE WATER RESOURCE IS DELIVERING 46 MILLION GALLONS A DAY. WE'RE ALSO HAVING A TREMENDOUS AMOUNT OF WATER BROUGHT BACK FROM AQUIFER STORAGE AND RECOVERY. SOMETIMES I CALL THAT THE WATER BANK FOR PEOPLE TO MAYBE MAKE IT MORE INTUITIVE. WE PUT WATER IN THERE DURING WATER TIMES, AND WE CAN BRING IT BACK WHEN AT TIMES ARE DRY. 52 MILLION GALLONS A DAY. IT IS PERFORMING BEAUTIFULLY THIS SUMMER, BRACKISH DESALINATION IS ALSO PRODUCING WATER FOR US. AND THEN WE HAVE OTHER WATER SUPPLIES BRINGING IN ANOTHER 27 MILLION GALLONS A DAY. ON TOP OF THAT, WE DON'T WANNA FORGET ONE OF OUR EARLIEST SUPPLY DIVERSIFICATION EFFORTS, WHICH IS RECYCLED WATER. THE DIRECT PURPLE PIPE SYSTEM IS DELIVERING ABOUT 21 MILLION GALLONS A DAY. SO A NET OF 151 MILLION GALLONS A DAY, DAY OF NON EDWARDS WATER BEING USED BY OUR COMMUNITY EVERY DAY. THAT'S A, A REMARKABLE ACHIEVEMENT. AND OF COURSE, THE EDWARDS AQUIFER WILL ALWAYS BE IMPORTANT TO US. IT'S ALWAYS GOING TO BE A CORNERSTONE SUPPLY. AND SO YOU'RE GONNA HEAR ME TALK ABOUT THE EDWARDS AQUIFER LEVELS AND THE RULES PERTAINING TO IT IN THIS PRESENTATION. BUT ONE OF THE THINGS I DON'T WANNA FORGET TO, TO COMMENT ON ABOUT THESE DIFFERENT SUPPLIES THAT YOU SEE IS THAT IT BUILDS OUR RESILIENCE BEYOND THAT WE ARE NOT JUST DEPENDENT ON ONE SUPPLY, THE FACT THAT WE HAVE MULTIPLE DIFFERENT SOURCES OF WATER, EACH OF WHICH IS TODAY. DROUGHT FIRM MEANS THAT SHOULD THIS DROUGHT CONTINUE, SHOULD THE WORST CASE SCENARIO HAPPEN. AND THIS IS A MULTIPLE YEAR DROUGHT, WHICH HAS HAPPENED BEFORE IN SAN ANTONIO, AND WE PLAN FOR THAT. IT IS A GOOD POSITION TO BE IN, TO HAVE WATER COMING FROM MANY DIFFERENT PLACES. THERE ARE BIG POPULATIONS IN THIS COUNTRY, BIG CITIES WHERE THEY ARE COMPLETELY DEPENDENT ON ONE OR TWO SUPPLIES OF WATER, AND THOSE ARE IMPERILED RIGHT NOW. THAT'S NOT THE SITUATION WE HAVE TODAY IN OUR COMMUNITY. SO IT'S BEEN A DIFFICULT SUMMER THOUGH, DESPITE HAVING DROUGHT FARM SUPPLIES, THAT DOESN'T CHANGE THAT WHEN IT GETS EXTRAORDINARILY HOT AND DRY, IT IS JUST CHALLENGING IN THE WORLD OF WATER. AND C P S ENERGY HAS HAD TREMENDOUS CHALLENGES. OF COURSE, AS WELL. THE RECORD HEAT IN MAY, JUNE AND JULY HAVE MEANT THAT OUR HUNDREDS OF PEOPLE WORKING IN THE FIELD HAD A SIGNIFICANT HEALTH AND SAFETY THREAT THAT I'M GOING TO TALK ABOUT MAKING IT HARDER TO ADDRESS THE HIGH NUMBER OF MAIN BREAKS THAT WE'VE EXPERIENCED. ALSO RELATED TO THE EXTREME HEAT AND DRY SOIL CONDITIONS, WE'VE ALSO HAD HIGH CUSTOMER DEMAND. NOW, I, I WANNA BE CAREFUL IN SAYING THAT WE DO EXPECT THAT WHEN IT'S EXTRAORDINARILY HOT AND DRY, IT'S NORMAL FOR PEOPLE TO USE MORE WATER. AND THAT IS NOT A BAD THING. BUT WHAT WE'RE TRYING TO DO WITH THE RULES WE PUT IN PLACE IS MODERATE THAT INCREASE IN USE. WE HAVE A LOT OF PEOPLE IN SAN ANTONIO WHO DON'T USE DISCRETIONARY WATER HARDLY AT ALL. THEY MAY HAND WATER ONE OR TWO PLANTS AND THAT'S IT. THEY LET MOTHER NATURE PROVIDE. THEY'VE GOT RESILIENT LANDSCAPES. BUT WHEN IT DOES NOT RAIN AT ALL FOR MONTHS DURING THE SUMMER, WE IN THE CONSERVATION DEPARTMENT GIVE ADVICE AND SAY, YES, IT'S PROBABLY PRUDENT TO DO SOME REASONABLE WATERING OF YOUR SHRUBS AND TREES THAT ARE INVESTMENTS THAT YOU WANNA KEEP. AND WE HAVE PLANNED OUR WATER ACCORDINGLY THAT WE CAN AFFORD FOR YOU TO DO THAT. WHAT WE DON'T WANNA SEE IS USAGE SKYROCKETING TO TRY TO KEEP GRASS GREEN IN A TEMPORARY WAY. SO IT'S AN IMPORTANT MESSAGE THAT YES, IT'S OKAY TO USE WATER, JUST MODERATE YOUR USE. AND THAT'S WHAT THE RULES ARE IN PLACE TO ACCOMPLISH. AND BY THE WAY, THE RAIN WE JUST GOT, UH, IF YOU'RE WONDERING ABOUT IT VARIED A LOT ACROSS SAN ANTONIO. SOME PLACES GOT A REALLY GOOD DRENCHING. THE OFFICIAL AT THE AIRPORT IS UNDERWHELMING, UH, A LITTLE LESS THAN A QUARTER OF AN INCH, I BELIEVE AT MY HOUSE IT WAS IS MAYBE AN EIGHTH OF AN INCH. I WAS VERY DISAPPOINTED WHEN I LOOKED IN THAT RAIN GAUGE. AND THE AQUIFER HAS NOT RESPONDED TO THAT YET, WHERE RAIN FALLS MATTERS A LOT. SO WE'RE HOPING TO SEE SOME REGIONAL RAIN IN THE RECHARGE ZONES THAT ARE TO THE NORTHWEST OF US, BUT WE'LL TAKE WHAT WE CAN GET. NOBODY'S COMPLAINING ABOUT RAIN THAT IS HELPING THE SOILS AND THE LANDSCAPES ACROSS SAN ANTONIO PERFORM BETTER. AND BECAUSE WE ARE OPTIMISTIC PEOPLE AT SAS, I HAVE BROUGHT YOU ALL A RAIN GAUGE TODAY SO THAT YOU CAN, UH, PUT IT IN YOUR YARD AT HOME AND KEEP TRACK OF HOW IT GOES FOR YOU. [01:00:04] I WANNA, UM, GO TO A POINT THAT IS A BIT CONFUSING, I THINK, TO THE PUBLIC, WHICH IS THE DISTINCTION BETWEEN THE RULES THAT THE EDWARDS AQUIFER AUTHORITY PUTS ON PERMIT HOLDERS FROM THE EDWARDS. SO PERMIT HOLDERS INCLUDE AGRICULTURAL USERS THAT HAVE WELLS FOR FARMING OPERATIONS. IT INCLUDES SOME INDUSTRIAL, UH, COMPANIES THAT HAVE THEIR OWN WELLS AND MAY PRODUCE WATER FROM THEM FOR THEIR OPERATIONS. AND OF COURSE, IT INCLUDES SAUCE. WE HAVE WELLS OVER A HUNDRED WELLS THAT ARE PART OF THE SA SYSTEM IN THE EDWARDS AQUIFER, AND WE HAVE A PRETTY SIGNIFICANT PERMIT. SO THE EDWARDS AQUIFER AUTHORITY OVER YEARS OF NEGOTIATION HAS ENDED UP WITH STAGES THAT I HOPE YOU CAN READ WELL ON THE SCREENS IN FRONT OF YOU. I KNOW THEY'RE A LITTLE WASHED OUT ON THIS THAT INDICATE FOR PERMIT HOLDERS. AS THE AQUIFER DROPS OR SPRING FLOW SLOW DOWN, THEY REDUCE THE AMOUNT OF PERMIT YOU CAN USE. AND THEY TELL PERMIT HOLDERS, THIS IS THE MATH EQUATION. IF YOU HAD THIS MUCH WATER EVERY DAY WE'RE UNDER THESE RULES, YOU JUST LOST A LITTLE OF IT. AND AT THE END OF THE YEAR, WE'RE GONNA HAVE TO MAKE SURE THAT WE DO NOT EXCEED THE NEW PERMIT LEVEL BASED ON THE MATHEMATICAL EQUATION OF HOW MUCH WATER WE LOST DUE TO EITHER THE J 17 INDEX, WELL, WHERE THEY MEASURE HERE IN BEXAR COUNTY OR THE SPRING FLOWS THAT YOU SEE HERE. SO A COUPLE KEY DISTINCTIONS. THE EDWARDS AQUIFER AUTHORITY DOESN'T TELL THEIR PERMIT HOLDERS HOW TO MANAGE THE REDUCED AMOUNT THAT THEY HAVE. THEY JUST SAY YOUR PERMIT GOT SMALLER, MANAGE IT. THEY ALSO TRIGGER IN AND OUT EXACTLY AT 10 DAY ROLLING AVERAGES. AND I'M GONNA SHOW YOU THE IMPACT OF THAT. AND THEY DO SO NOT JUST ON J 17, BUT ON SPRING FLOWS. SO SOME PEOPLE WHO ARE, YOU KNOW, WE LOVE WATER NERDS AT SIZE, AND WE HAVE A LOT OF THEM IN SAN ANTONIO. PEOPLE WERE CONFUSED. THEY SAID, WAIT A MINUTE. THE EDWARDS AQUIFER LEVEL AT J 17 IS ABOVE THE STAGE FOUR TRIGGER. WHY ARE WE, WHY IS EDWARDS AQUIFER AND STAGE FOUR? WELL, COMAL SPRINGS WAS TOO LOW. AND THAT IS ANOTHER TRIGGER. SO IF ANY OF THE TRIGGERS THAT YOU SEE AT ANY STAGE ARE HITTING A LEVEL THAT WOULD INDICATE GOING TO DEEPER STAGE, THE E A A WILL DECLARE IT. AND THEN AS SOON AS THEY'VE ALL RECOVERED, THEY'LL POP RIGHT BACK OUT. AGAIN, THE CITY ORDINANCE THAT ALL CONTRAST ONLY RECOGNIZES J 17, I THINK IT WOULD BE VERY CONFUSING TO THE PUBLIC IF WE HAD ALL OF THEM IN THERE. AND USUALLY THE J 17 INDEX WELL TRACKS PRETTY WELL WITH THE OTHER TRIGGERS. SO IN CONTRAST, THE RULES THAT THE CITY OF SAN ANTONIO HAS IN PLACE IN CHAPTER 34 OF THE CITY ORDINANCE, UM, ARE DESIGNED TO HELP MODERATE WATER USE, REALLY SPECIFICALLY ONLY DISCRETIONARY WATER USES. WE ARE NOT, UH, AIMING OUR RULES AT ANY WATER PEOPLE USE FOR HEALTH AND HUMAN SAFETY INSIDE THEIR HOMES OR REALLY ANY USAGE THAT HAS TO DO WITH ECONOMICS. SO WE HAVE WATER USERS THAT, UM, RUN OUR ECONOMIC ENGINE. WE PRODUCE FOOD, WE PRODUCE COMPUTER CHIPS. WE HAVE A LOT OF INDUSTRY IN SAN ANTONIO. THAT'S IMPORTANT THAT WATER USE IS PRETTY STABLE AND WE PLAN TO BE ABLE TO MANAGE THAT. WHAT WE'RE TRYING TO PREVENT IS HAVING DISCRETIONARY WATER USE, LIKE REALLY MOSTLY WATERING LANDSCAPES SKYROCKET WHEN IT GETS HOT AND DRY. SO THE RULES ARE PRETTY SQUARELY AIMED AT THAT CONSUMPTION AT COMMERCIAL AND RESIDENTIAL PROPERTIES. ON STAGE ONE, WHEN THE J 17 INDEX WELL HITS SIX 60, IT'S, UH, IT SAYS SHALL IN THE ORDINANCE. THAT'S WHAT I CALL A HARD TRIGGER. SO YES, AS SOON AS WE HIT THAT 10 DAY ROLLING AVERAGE, WE GO IN STAGE TWO, SAME THING, SIX 50, IT'S A SHELL. AND WE GO INTO STAGE TWO. STAGE ONE IS ONCE A WEEK. WATERING STAGE TWO REDUCES THE HOURS TO SEVEN TO 11 IN THE MORNING AND SEVEN TO 11 IN THE EVENING TO USE HOSE END OR AUTOMATIC IRRIGATION. NOW, STAGE THREE AND FOUR ARE VERY DIFFERENT FROM THE EDWARDS AQUIFER. WE CONSIDER OUR OPTIONS WHEN WE HIT THE 10 DAY ROLLING AVERAGE OF SIX 40. AND WE ASK A KEY QUESTION IS FURTHER IN POSITION OF RULES NECESSARY. SO THE ORDINANCE, DIRECT SAWS TO ANALYZE SUPPLY AND DEMAND AND FORECAST FUTURE CONDITIONS, AND THEN TO MAKE A RECOMMENDATION TO THE CITY MANAGER TO SAY, WE THINK WE SHOULD HOLD AT STAGE TWO. OR WE THINK FURTHER RESTRICTIONS ARE NECESSARY TO ENSURE THAT WE STAY WITHIN OUR PERMITTED SUPPLIES AND WE MANAGE DEMAND WELL IN THE COMMUNITY, STAGE FOUR BY ORDINANCE CAN BE CONSIDERED AFTER STAGE THREE HAS BEEN IN PLACE AT LEAST 30 DAYS. AND STAGE FOUR IS A SURCHARGE ON EXCESS USE, PRETTY MUCH WATER USE AFTER ABOUT 12,000 GALLONS DISCRETIONARY WATER USE [01:05:01] AGAIN, SPECIFICALLY. NOW, ANOTHER KEY DIFFERENCE FROM THE E A A STAGES IS SOMETHING I CALL THE COMMON SENSE CLAUSE FOR COMING OUT. SO SOMETIMES THE AQUIFER HITS ABOUT AT A TRIGGER LEVEL, LIKE SIX, UH, 50, AND IT'LL BUMP UP A LITTLE BIT, BUT WE'RE LOOKING AT THE FORECAST AND WE KNOW IT'S PROBABLY GONNA BUMP THAT BACK DOWN IN A WEEK. AND SO IT WOULD BE TREMENDOUSLY CONFUSING TO THE PUBLIC IF EVERY TIME IT BUMPED UP ABOVE THE TRIGGER, WE CAME OUT AND THEN POP RIGHT BACK IN AGAIN. SO THE COMMON SENSE CLAUSE SAYS, OKAY, YOU, YOU'VE BUMPED UP ABOVE A TRIGGER, ANALYZE WHAT'S HAPPENING FOR ABOUT TWO WEEKS AND THEN CALL IT AND SAY, WE'RE RECOMMENDING TO THE CITY MANAGER WE HOLD BECAUSE WE'RE STILL THINK IT'S IT'S GONNA BE IN THESE CONDITIONS OR RECOMMEND WE COME OUT. SO THESE, THIS VERY BUSY, UM, GRAPHIC HERE, UH, CONTRASTS THE DIFFERENCE IN WHAT HAPPENS WITH THE E A A PERMIT HOLDER LEVELS VERSUS THE CITY OF SAN ANTONIO. SO YOU'LL NOTICE THAT STARTING 2009 TO 2022, UM, THE E A A, YOU'LL SEE VERY NARROW BARS, THE DIFFERENT COLORS OR STAGES, AND THEY'LL HAVE A STAGE, A PERIOD OF STAGE THREE, THE MUSTARD YELLOW LINE WHERE IT'S VERY BRIEF, THEY WENT IN, CAME BACK OUT PRETTY FAST. STAGE FOUR IN 2015, KIND OF SAME THING, NOT IN VERY LONG. THE E A A RECENTLY WENT TO STAGE FOUR, DIDN'T LAST VERY LONG. IN CONTRAST, THERE'S MORE STABILITY IN WHAT HAPPENS WITH THE CITY OF SAN ANTONIO RULES. THAT'S REALLY HELPFUL BECAUSE IF YOU'RE TRYING TO GET 2 MILLION PEOPLE TO ACT ON A MESSAGE, YOU NEED A CLEAR, DEFINITIVE, REASONABLE MESSAGE THAT STAYS IN PLACE FOR LONG ENOUGH FOR PEOPLE TO HEAR IT AND THEN TAKE ACTION ON IT. AND THAT MAY SOUND SIMPLE. IT'S REALLY NOT SIMPLE TO GET THOUSANDS OF PEOPLE TO GO IN THEIR GARAGE FACE DOWN THAT REALLY CONFUSING IRRIGATION CONTROLLER AND GET IT SET RIGHT. YOU'LL NOTICE THAT IN 2011, THE LAST TIME WE HAD A DROUGHT OF THE MAGNITUDE THAT WE ARE EXPERIENCING RIGHT NOW, THAT WENT ON FOR SEVERAL YEARS. WE HAD A BRIEF PERIOD WHERE IT LOOKS LIKE LOOKED LIKE WE WERE CLEAR, BUT NOT SO MUCH. BUT WE STAYED IN STAGE TWO FOR A COUPLE YEARS. AND I'M GONNA SHOW YOU WHAT HAPPENED WITH DEMAND EVEN AFTER BEING IN STAGE TWO FOR QUITE A WHILE. UM, THE KEY THING HERE IS THAT WHAT WE LEARNED FROM THAT LONG DROUGHT IS THAT THE LONGER WE HOLD IN STAGE TWO, THE MORE SAVINGS WE GET. PEOPLE FIGURE IT OUT, THEY GET THOSE CONTROLLERS SET RIGHT, THEY START MAKING SOME DIFFERENT LANDSCAPE CHOICES. AND WE SEE THE PER CAPITA DEMAND CONTINUE TO DROP OVER TIME AS WE EDUCATE AND ENFORCE ON STAGE TWO. RIGHT NOW, WE'RE DOING OKAY, WE'RE, WE'RE ABOUT WHERE I'D EXPECT ON GETTING FULL COMPLIANCE. WE'RE NOT THERE YET ON FULL COMPLIANCE OF STAGE TWO, BUT THE COMPLIANCE IS GROWING. SO THE SAVINGS ARE GROWING FROM WHERE WE ARE RIGHT NOW WITH STAGE TWO. AND THERE ARE SOME REASONS THAT WE BELIEVE THAT WE'RE GOING TO BE SUCCESSFUL IN ASKING PEOPLE TO MAKE THESE CHANGES. ONE IS THAT THIS ISN'T A NEW MESSAGE, REALLY. WE'VE BEEN MESSAGING THAT WATERING YOUR LANDSCAPE ONCE A WEEK IS SUFFICIENT AND WE'VE BEEN KEEPING THAT CONSISTENT MESSAGE, WHETHER IT'S A RULE OR A RECOMMENDATION FOR OVER 20 YEARS. WE GIVE OUT WEEKLY ADVICE BASED ON EVAPOTRANSPIRATION AND IT'S CONSISTENTLY PICK YOUR DAY AND WATER ONCE A WEEK, DO SO REASONABLY WELL, SOMETIMES SKIP IT AND YOUR LANDSCAPE WILL DO WELL. ANOTHER KEY THING IS THAT SINCE 2006, WE'VE HAD RULES IN PLACE FOR NEW CONSTRUCTION REQUIRING GRASS THAT CAN SURVIVE MORE THAN 30 DAYS WITHOUT WATER. AND IF HAVING ADEQUATE SOIL UNDER THAT GRASS TO SURV ALLOW IT TO SURVIVE, THAT PAST IN 2006 WENT INTO EFFECT IN 2007. AND SO THAT HAS BENEFITED A LOT OF NEW CONSTRUCTION ACROSS SAN ANTONIO, PROVIDING A KEY RESILIENCE. WE HAVE HIGH STANDARDS FOR AUTOMATIC IRRIGATION IN THE STATE OF TEXAS AND EVEN HIGHER STANDARDS IN CODE IN THE CITY OF SAN ANTONIO. AND WE'VE PROVIDED A LOT OF INCENTIVES TO ASK PEOPLE, DO YOU WANNA TRANSFORM YOUR LANDSCAPE? SO EVEN IF THAT GRASS CAN SURVIVE THE HEAT, IT DOESN'T LOOK GOOD. IT GOES DORMANT, IT STARTS TO LOOK CRUNCHY AND IT'S GONNA COME BACK TO GREEN. BUT PEOPLE DON'T LIKE LOOKING AT IT. SO WE HAVE COUPONS THAT PROVIDE UPFRONT RESOURCE. YOU TAKE THAT COUPON TO SEVEN LOCALLY OWNED, UH, PLANT VENDORS AND YOU GET YOUR PLANTS THAT YOU NEED TO REPLACE 200 SQUARE FEET OF GRASS. THOUSANDS OF PEOPLE HAVE USED THIS TO THE TUNE OF MILLIONS OF SQUARE FEET OF GRASS REPLACED. [01:10:01] NOW, I'M PARTICULARLY PROUD OF THIS MAP, THE HEAT MAP OF THE COUPON USAGE BECAUSE THAT UPFRONT MONEY NOT REQUIRING PEOPLE TO MAKE A FINANCIAL INVESTMENT ON THEIR OWN AND WAIT FOR A REBATE HAS BEEN KEY TO ENSURING THAT PEOPLE ACROSS OUR COMMUNITY HAVE USED THAT PROGRAM. WE HAVE A LOT OF OTHERS, BUT THIS ONE HAS BEEN PARTICULARLY POPULAR NOW. AND WITHIN SAWS, WE HAVE A TEAM THAT WE DEPLOY DURING DROUGHT PERIODS CALLED THE DROUGHT MANAGEMENT TEAM. THIS IS A, UH, REPRESENTATION OF PEOPLE FROM EVERY DEPARTMENT AT SAWS BECAUSE FRANKLY, EVERYTHING AT SAWS IS IMPACTED WHEN WE GET INTO DROUGHT LIKE THIS. SO WHEN WE MEET, WE HAVE PEOPLE FROM, OF COURSE, CONSERVATION, WATER RESOURCES, DISTRIBUTION AND COLLECTION OPERATIONS, CUSTOMER SERVICE, FINANCE, OUR PUBLIC RELATIONS AND EDUCATION TEAMS. AND WE SHARE INFORMATION IN A, IN A WITH A ALSO A SIGNIFICANT DATA REPORT TO EACH OTHER TO DISCUSS STRATEGIES TO SAY, HOW IS IT GOING? HOW ARE WE DOING? ARE YOU EXPERIENCING CHALLENGES IN OPERATIONS DUE TO HIGH DEMAND? IS EVERYTHING HOLDING REALLY WELL WITH OUR SUPPLIES? UM, HOW ARE CUSTOMERS RESPONDING TO THE RULES? WHAT IS THE MEDIA ASKING US? AND THEN WE PUT TOGETHER A DETAILED REPORT THAT GOES OUT EVERY TWO WEEKS. NOW, THE KEY TO THIS IS THAT EVERYBODY HAS AN IMMEDIACY OF INFORMATION. THAT IS NOT THE CASE ACROSS A LOT OF UTILITIES. OFTEN YOU'LL HAVE THE EDUCATION TEAM AND THE CONSERVATION TEAM KIND OF OFF OVER HERE AND THE OPERATORS ARE DOING THEIR OWN THING AND THEY MAY NOT SEE A REASON TO TALK TO EACH OTHER AS THAT OFTEN. WE HAVE MADE THAT A FORMAL EFFORT TO DO IT ALL THE TIME. SO WE HAVE REAL TIME INFORMATION AND I'LL GIVE YOU SOME EXAMPLES OF HOW MY TEAM USES THAT INFORMATION FROM THE OPERATORS AS WE ARE WORKING ON THE DROUGHT ENFORCEMENT. NOW, UH, WE, I MENTIONED THE 2011 WAS THE LAST TIME IT WAS THIS CHALLENGING. SO I'M GONNA COMPARE US TO 2011. ONE OF THE METRICS THAT WE'RE INTERESTED IN IS HOW MANY MILLIONS OF GALLONS A DAY WE'RE USING TO MEET ALL CUSTOMER NEEDS. AND THIS IS THE CHART FROM JANUARY THROUGH, UH, SEPTEMBER IN 2011. AND I'M GONNA CALL ATTENTION TO A COUPLE PATTERNS HERE AND THEN TALK ABOUT A CONTRAST TO WHAT'S HAPPENING THIS YEAR. AND I, I SHOWED YOU ON A CHART, IT'S EVEN HOTTER AND DRIER THAN IT WAS IN 2011. UM, THE HEAT HAS BEEN WORSE AND THE LACK OF PRECIPITATION HAS BEEN WORSE THAN IT WAS IN 2011. BUT THOSE ARE THE MOST COMPARABLE TIME PERIODS WE HAVE NOW. NORMALLY IF YOU LOOKED AT A PUMPING CHART FOR SAWS, YOU WOULD SEE A BELL-SHAPED CURVE. YOU WOULD SEE THAT EVERY MONTH THROUGH THE SUMMER, PRODUCTION GOES UP AS THE DISCRETIONARY WATER USE INCREASES, AND THEN IT TAILS BACK DOWN IN THE FALL. IT DID GO UP IN THE SUMMER. BUT A COUPLE KEY THINGS. WE, DESPITE THE LACK OF RAIN AND HEAT, WE STABILIZED THAT DEMAND. IT REACHED A LOWER PEAK THAN IT WOULD HAVE OTHERWISE. WE DID SELL A LOT OF WATER IN 2011 BECAUSE IT WAS HOT AND DRY. PEOPLE USED LAWFUL WATER. AND THEN YOU SEE THIS STRANGE PATTERN THAT GOES INTO EFFECT SOMEWHERE AROUND JUNE, WHERE SEESAWS, THAT IS THE EFFECT OF WEEKENDS WHEN THE RULES DON'T HAVE ANY SPRAY IRRIGATION, 50 MILLION GALLONS A DAY REDUCTION ON SATURDAY AND SUNDAY. SO WE LOOK FOR THAT AS AN INDICATOR TO SEE ON THE WHOLE ACROSS THE COMMUNITY HOW MUCH COMPLIANCE IS THERE. NOW, I CAN'T COMPARE DIRECTLY PRODUCTION AMOUNTS IN 2011 TO TODAY. AND THE REASON IS THAT WE HAVE HAD A 53% INCREASE IN THE NUMBER OF PEOPLE WE SERVE SINCE THEN. WE MERGED WITH THE FORMER BARE MET. AND THERE'S JUST BEEN A LOT OF GROWTH IN SAN ANTONIO, A LOT MORE BUSINESSES AND A LOT MORE HOMES IN OUR COMMUNITY. SO IF WE TOOK UP THAT WHOLE LINE, 53% HIGHER, THAT DOTTED LINE IS WHAT YOU'D EXPECT TO SEE THIS YEAR. NOW I'M GONNA PUT UP WHAT'S ACTUALLY HAPPENING THIS YEAR. WE ARE HIGHER THAN WE WERE IN 2011. WE ARE 53% MORE PEOPLE THAN WE WERE THEN. BUT WE ARE NOT APPROACHING THE SAME LEVEL OF PER CAPITA CONSUMPTION. UH, IT'S, IT'S, WE'VE, WE'RE GETTING TO THAT STABILIZATION WHERE IT'S STILL GOING UP A LITTLE BIT MID-SUMMER, BUT WE'RE REACHING A STABLE POINT. YOU'RE STARTING TO SEE THAT REDUCTION OF ABOUT 50 MILLION GALLONS ON THE WEEKENDS. YOU CAN REALLY SEE THE FEW MINOR RAIN EVENTS WE HAD, UH, WHERE IT DROPS EVEN MORE. BUT THE KEY INDICATOR THAT PUTS IT IN PERSPECTIVE IS THAT IN 2011, THE YEAR TO DATE PER CAPITA CONSUMPTION WAS 181. AT THIS POINT IN 2011 THIS YEAR, THE YEAR TO [01:15:01] DATE IS ONE 20.8. SO A TREMENDOUS DIFFERENCE. UM, WE ARE PERFORMING BETTER AT MANAGING DEMAND THIS YEAR THAN WE DID IN 2011. SO THAT SPEAKS TO THE PROGRESS WE'VE MADE AS A COMMUNITY IN BUILDING OUR RESILIENCE AND OUR LANDSCAPES AND PEOPLE'S UNDERSTANDING THAT THEY CAN MAINTAIN THEIR LANDSCAPE WITHOUT A HUGE AMOUNT OF WATER. NOW, DO WE CONSIDER OURSELVES TO BE DONE? NO . I'M GONNA TALK ABOUT FURTHER EFFORTS WE'RE DOING TO REALLY GET, UH, MORE COMPLIANCE BUILDING AND GET MORE EDUCATIONAL AWARENESS OF THE IMPORTANCE OF THOSE RULES. UH, BUT FIRST I WANTED TO SHARE SOME PERSPECTIVE ON THE EDWARDS AQUIFER. SO THIS IS WHAT THE EDWARDS AQUIFER DID IN 2011. THE HEAT CAME ON REALLY HARD AND FAST. THERE'S HIGH AGRICULTURAL DEMAND IN THE EARLY SPRING, WHICH IS NORMAL WHEN THERE'S NO RAIN. SO YOU SEE THE AQUIFER TAKES A PRETTY STEEP DIVE THAT SEEMS TO END AROUND JULY. THAT'S WHEN THE CORN COMES IN, AND THEN THE COTTON SHORTLY AFTER. UM, BUT OF COURSE, SAWS IS A CONTRIBUTOR AS WELL. LATER IN THE SUMMER, SAWS USE BECOMES MORE EVIDENT IN THE PATTERNS BECAUSE THE AG DEMAND HAS LESSENED. UH, YOU SEE THAT SAWTOOTH PATTERN AGAIN AS IT'S JULY SEP THROUGH AUGUST OR OCTOBER. REALLY, THAT'S THE WEEKENDS. AND YOU CAN SEE WHEN THERE'S LESS PRODUCTION FROM SAWS ON THE WEEKENDS, THE AQUIFER GETS A LITTLE RECOVERY. NOW, 20 ELEVEN'S NOT THE WORST THE AQUIFERS HAD IN A MULTIPLE YEAR DROUGHT IN THE FIFTIES, WHICH IS WHAT WE PLAN FROM. WE DO A SCENARIO FROM LOOKING AT THE WORST IT'S EVER BEEN COMBINED WITH SOME CLIMATE, UH, PROJECTIONS TO SAY WHAT'S THE REALLY THE WORST CASE SCENARIO WE CAN COME UP WITH. BUT THIS IS WHAT ACTUALLY HAPPENED IN 1956. AFTER SEVERAL YEARS OF DROP THE AQUIFER DROPPED TO EXTREMELY LOW LEVELS. INTERESTING, A SIMILAR PATTERN. UM, THE AQUIFER ALMOST ALWAYS RECOVERS A BIT IN THE FALL, EVEN ABSENT RAIN DEMAND GOES DOWN, WATER MOVES AROUND IN THE AQUIFER, MOVES OVER FROM THE WEST TO OUR AREA, AND YOU'LL SEE SOME RECOVERY UP. NOW, HERE'S WHERE WE ARE IN 2022. WE STARTED LOWER THAN 2011 AND WE HAD A VERY SIMILAR DROP PATTERN. AND WE ARE NOW AT THE PERIOD OF THE SUMMER WHERE THERE'S LESS DRAMATIC DROP IN THE AQUIFER. UM, AGAIN, YOU CAN REALLY SEE THE IMPACT OF ANY EVEN MINOR RAIN EVENTS. HAVEN'T GOTTEN THE BUMP FROM THIS ONE YET, HOPING WE WILL. UM, BUT WHAT WE'RE EXPECTING IS TO SEE THAT PATTERN OF LESS DECLINE UNTIL WE GET TO FALL. AND THEN SOME RECOVERY. WHAT WE'RE REALLY HOPING FOR IS WE GET SOME SIGNIFICANT RAIN OVER THE RECHARGE AND WE SEE A 10 FOOT INCREASE. BUT IF IT DOES NOT, WE'RE PREPARED FOR THAT. WE HAVE HAD THIS HAPPEN BEFORE WHERE WE WENT THROUGH A BAD DROUGHT, ENDED THE YEAR IN STAGE TWO, AND THEN HAD TO MANAGE THE NEXT SUMMER. SO IF THAT HAPPENS, SAS IS READY FOR IT. OUR SUPPLIES ARE FIRM FOR IT, BUT IT'S NOT GOING TO BE EASY. IT NEVER IS. NOW, WITH THAT IN MIND, WE TAKE THE RULES SERIOUSLY. OUR PHILOSOPHY AT SASS IS, YOU KNOW, SAY WHAT, SAY WHAT YOU, WHAT YOU WANT PEOPLE TO DO AND THEN REALLY MEAN IT. SO SAY WHAT YOU MEAN, MEAN WHAT YOU SAY. AND WHAT WE ARE ASKING IS FOR PEOPLE TO WATER ONCE A WEEK. WE HAVE, I'M GONNA TELL YOU A BIT ABOUT HOW WE'RE EDUCATING PEOPLE ON THAT AND GIVING THEM A VERY URGENT MESSAGE. BUT AFTER BEING IN STAGE TWO ONCE A WEEK, UH, FOR WELL OVER A MONTH AND DOING EXTRAORDINARILY AMOUNTS OF MESSAGING ON IT, IT DOES GET TO A POINT WHERE SOME PEOPLE WON'T TAKE IT SERIOUSLY UNLESS THEY KNOW THERE'S A CONSEQUENCE. BUT LIKE SPEEDING, SOME PEOPLE WILL DRIVE FASTER THEN THE SPEED LIMIT IF THEY THINK THERE IS NO CONSEQUENCE FOR IT. SO WE HAVE DROUGHT PATROLS AND THESE SQUIGGLY LINES THAT YOU SEE ALL OVER THE PLACE REPRESENT, UM, US TRACKING WHERE WE'RE GOING IN ORDER TO SEE HOW ENFORCEMENT IS GOING. NOW, I, I WOULD BE SURPRISED IF YOU'RE NOT NOTING THAT THOSE SQUIGGLY LINES APPEAR TO BE IN VERY SPECIFIC PARTS OF TOWN THAT'S NOT ACCIDENTAL. WE USE SEVERAL DIFFERENT DATA POINTS TO SUGGEST WHERE WE NEED TO GO. ONE IS WHERE ARE WE PRODUCING THE MOST WATER? WE HAVE OPERATORS WHO WATCH OUR ELEVATED STORAGE TANKS. THOSE BIG TANKS YOU SEE 24 HOURS A DAY. AND THEY KNOW HOW MUCH WATER THEY HAVE TO PUSH INTO THOSE TANKS. AND THEY KNOW WHEN, SO WHEN THAT D M T MEETS, THEY'LL TELL US, WELL, THIS PARTICULAR TANK IN THIS NEIGHBORHOOD IS DRAINING FAST AT TWO IN THE MORNING EVERY NIGHT. AND THERE'S NO PARTICULAR REASON FOR IT OTHER THAN A LOT OF IRRIGATION GOING OFF. AND WE ARE HAVING TO PUSH HARD TO KEEP THE WATER IN THAT TANK TO MAINTAIN PRESSURE. SO CAN YOU [01:20:01] PLEASE DO SOME MORE ENFORCEMENT IN THAT NEIGHBORHOOD THAT'LL HELP US OUT. SO WE HEAD WHERE WE GET COMPLAINTS. WE HEAD WHERE WE SEE HIGH CONSUMPTION FROM CUSTOMERS. WE HEAD WHERE THE OPERATORS TELL US DAY TO DAY THEY'RE HAVING TO PUSH A LOT OF WATER TO MEET CUSTOMER DEMAND. NOW WHY IS IT SO HIGH IN THE PARTS OF TOWN WHERE YOU SEE THE COLOR? WELL, THERE ARE A LOT OF AUTOMATIC IRRIGATION SYSTEMS IN THAT PART OF TOWN. THE THINGS THAT RUN BY A CONTROLLER IN THE GARAGE GO OFF AUTOMATICALLY AND APPLY WATER VERY EFFICIENTLY ACROSS THE ENTIRE PROPERTY. ON AVERAGE, IF YOU'VE GOT AN AUTOMATIC IRRIGATION SYSTEM, THE AVERAGE HOME USES 70% MORE WATER THAN A HOME THAT DOESN'T HAVE ONE. SO IT MAKES SENSE THAT THE, MY MARKET PENETRATION OF THOSE AUTOMATIC IRRIGATION SYSTEMS ARE GONNA USE MORE WATER. UNFORTUNATELY, THE CONTROLLERS ON THOSE THINGS ARE VERY CONFUSING. SO EVEN PEOPLE WHO REALLY WANT TO COMPLY SOMETIMES STRUGGLE WITH THEM. WE OFFER A COUPON, BY THE WAY, TO GET THEM ONE THAT RUNS OFF THEIR SMARTPHONE AND IS MORE INTUITIVE FOR SOME PEOPLE. AND WE'RE TELLING 'EM ALL ABOUT IT AND THEY'RE USING IT. BUT NONETHELESS, IT TAKES SOME EFFORT TO GET INTO THOSE COMMUNITIES. SPECIFICALLY, THERE HAVE BEEN OVER 4,000 WARNINGS YEAR TO DATE, AND THERE ARE ABOUT 2000 CITATIONS IN PROCESS. UH, SO FAR. THOSE ARE MUNICIPAL SIMILAR TO A SPEEDING TICKET, UH, THAT GET RESOLVED THROUGH MUNICIPAL COURT. GENERALLY, WHAT WE'VE SEEN IN OTHER DROUGHTS IS MOST PEOPLE DON'T GET A SECOND ONE. IT'S UNUSUAL. IT'S USUALLY ONE AND DONE. PEOPLE MIGHT NOT HAVE HEATED THE WARNING AND TAKEN THAT SERIOUSLY, BUT THEY DO GENERALLY TAKE THE CITATION SERIOUSLY. THE NET CITATION COST AND MUNICIPAL COURT FEES USUALLY COME OUT TO BE 130 TO $150 ON THE FIRST VIOLATION. AND WE TYPICALLY SEE A DECREASE OF ABOUT 2000 GALLONS A MONTH POST CITATION. SO WE DON'T LIKE DOING IT, BUT THEY DO WORK. SO WE'RE DOING A LOT TO MESSAGE PEOPLE. WE HAVE, UH, TOOLS WE DIDN'T HAVE IN 2011, A LOT OF SOCIAL MEDIA OUTREACH TO MAKE SURE PEOPLE KNOW WHEN THEIR DAY IS AND WHAT THE TIMES ARE. WE ARE WORKING WITH THE VARIOUS MEDIA, TELEVISION, RADIO, NEWSPAPER, ONLINE TO GET INFORMATION TO THE PUBLIC. WE HAVE VARIOUS SAWS ASSETS. OUR BILL INSERT IS AMAZINGLY POPULAR. IT'S A GREAT PRODUCT. AND I KNOW THIS BECAUSE PEOPLE CALL WHEN SOMETHING GOES IN THERE ABOUT A CONSERVATION PROGRAM, I CAN COUNT ON A BIG BUMP IN PARTICIPATION 'CAUSE PEOPLE DO READ THAT WHEN THEIR BILL COMES. WE HAVE SAWS.ORG, WE HAVE GARDEN STYLE SAN ANTONIO, A SITE THAT'S ALL ABOUT CONSERVATION AND LANDSCAPING IN SAN ANTONIO. WE HAVE EMAILS ASSOCIATED WITH OVER HALF OF OUR ACCOUNTS. WE'VE BEEN WORKING HARD ON THAT. WE SEND OUT STAGE TWO EMAILS. THEY HAVE OVER A 60% OPEN RATE. SO A LOT OF EFFORTS TO GET THE WORD OUT. WE ALSO HAVE PAID MEDIA THAT WE USE SELECTIVELY. NOW, IN ADDITION TO THIS, KNOW WHEN TO WATER CAMPAIGN, A NEW CAMPAIGN IS LAUNCHING VERY SOON, VERY SOON I THINK TOMORROW. AND THIS CAMPAIGN IS GOING TO BE VERY DIGITALLY GEO-TARGETED AT THE PARTS OF TOWN WHERE WE'RE STILL SEEING VERY HIGH CONSUMPTION AND LESS COMPLIANCE. AND IT WILL BE MORE DIRECT TO ENSURE PEOPLE REALLY DO KNOW A CITATION IS AT RISK. THAT THESE ARE RULES, THEY'RE NOT SUGGESTIONS. AND, UH, THIS IS WHAT WE REALLY NEED YOU TO DO AT THIS TIME. SO WHEN I SAY DIGITALLY, I MEAN IT'S, IT'S, YOU KNOW, IT'S A FASCINATING WORLD WHERE YOU CAN TELL, UH, FOLKS WORK WITH HULU OR PANDORA AND OTHER DIGITAL ASSETS. THIS IS THE DEMOGRAPHIC AND THE LOCATION WHERE I NEED THE MESSAGE TO GO. WE'RE SENDING POSTCARDS. WE'VE SORTED THAT BY WATER USE AND WHERE, SO THAT WE ARE NOT SPENDING MONEY SENDING SOMEONE WHO'S NOT USING MUCH WATER A POSTCARD. SO THAT CAMPAIGN I THINK WILL BE A HELP IN ADDITION TO EVERYTHING ELSE. NOW, ONE OF THE CHALLENGES THAT HAS BEEN REALLY SIGNIFICANT THIS SUMMER, REALLY WORSE THAN WE'VE EVER SEEN BECAUSE OF THE WEATHER HAS BEEN THAT IT'S BEEN VERY HARD ON OUR SYSTEM. WE HAVE, UH, ELASTIC SOILS WHEN THEY DRY OUT, THEY MOVE, THEY PULL AWAY FROM THE PIPES. THEN WHEN THERE'S HIGH DEMAND, THE WATER GOES THROUGH THOSE PIPES AND MAKES THEM VIBRATE AND THEY BREAK. THIS IS 2021. THE, UM, NUMBER OF WORK ORDER REPAIRS FOR LEAKS THAT WE SAW IN 2021. THIS IS THIS YEAR. AS THOSE SOILS REACHED A TIPPING POINT, YOU SEE THAT WE SKYROCKETED UP TO OVER 600 MAIN BREAKS IN JULY. UH, WENT ACTUALLY OVER 700 AT THE END. WE ARE PROJECTING 800 FOR AUGUST. AND YOU MIGHT THINK, WELL, WE JUST GOT SOME RAIN, SO WILL THAT SETTLE THINGS? OUR VP OF DISTRIBUTION AND COLLECTION TELLS ME WE'LL HAVE AN INITIAL MAYBE MORE BREAKS BECAUSE THE SOIL WILL MOVE BACK AND THEN JOLT THE PIPE SOME MORE. SO ONCE THINGS REALLY [01:25:01] STABILIZE, THEN THE PIPE STOP SHIFTING AND DEMAND DROPS. THE THE REDUCTION IN DEMAND WILL HELP, UH, FROM THIS RAIN. AND USUALLY OUR CITIZENS ARE WONDERFUL IN THAT THEY REDUCE DEMAND GREATLY WHENEVER THEY GET RAIN. BUT THIS PRESENTS A LOT OF PROBLEMS BECAUSE THE EMPLOYEES WHO FIX THESE ARE OUT IN THIS HEAT AND MAIN BREAKS. JUST LIKE I HEARD C P S SAY, PROBLEMS AREN'T OCCURRING ONLY DURING THE COOLER HOURS OF THE DAY. THEY ARE SOMETIMES RIGHT IN THE WORST HEAT OF THE DAY WHEN IT IS FRANKLY DANGEROUS TO BE OUT THERE IN THE SUN EXERTING YOURSELF. SO WE HAVE BEEN TAKING A LOT OF MEASURES TO PROTECT THESE EMPLOYEES WHILE THEY STILL DO THIS CRITICAL WORK. YOU SEE AN UMBRELLA OVER SOME OF THEM. YOU WOULDN'T, YOU KNOW, ALL OF US KNOW WHEN WE'RE OUTSIDE, WE HEAD FOR WHATEVER SCRAP OF SHADE WE CAN FIND. WE RIG UP SHADE, WE RIG UP FANS. WE HAVE COOLING VESTS. WE HAVE AN EMPHASIS ON HYDRATION. WE ALSO HAVE PUTTING, BEEN PUTTING MORE PEOPLE ON THESE REPAIRS THAT WE HAVE REDIRECTED PEOPLE FROM OTHER OPERATIONS THAT CAN BE PUT ON PAUSE TO DO MORE, HAVE MORE TEAMS WORKING THE REPAIR PROCESS. WE OFTEN ARE SENDING, WAIT, WE LESSENED THIS AS THE TEMPERATURES DROPPED A BIT, BUT WHEN IT WAS OVER A HUNDRED EVERY DAY, WE WERE SENDING TWO CREWS TO THE BIG LEAKS AND FORCING THEM TO TAKE BREAKS. THESE ARE GUYS WHO JUST WANNA GET THE JOB DONE. AND SO THEIR SUPERVISORS HAVE TO BE VERY FIRM ABOUT, NO, YOU ARE PAUSING. GET IN THE SHADE. NOW YOU'RE IN. UH, OTHERWISE HEAT STROKE COMES ON FAST AND TRULY IS VERY DANGEROUS. THE OTHER THING THOUGH THAT WE'VE JUST HAD TO DO IS, UH, BRING IN CONTRACTORS. WE HAVE FIVE AND ANOTHER ONE BEING BROUGHT ON BOARD. BUT DESPITE THAT, WE'RE HAVING TO TRIAGE CRITICAL REPAIRS FIRST, LIKE THE ONE YOU SEE A PICTURE OF THAT'S PUTTING SERVICE AT RISK. AND THEN THE ONES THAT ARE MAYBE NOT THAT DRAMATIC, BUT STILL LARGE WATERWAYS SECOND, AND THE VERY SMALL LEAKS ARE LAST. THIS DRIVES PEOPLE CRAZY. I WILL SHOW YOU MORE PICTURES IN A MINUTE OF THE EXAMPLES OF EACH. OUR COMMUNITY CARES ABOUT WATER AND THEY HATE TO SEE WATER WASTE AND WE APPRECIATE THAT. BUT WE'RE TELLING THEM, HONESTLY, WE'RE DOING THE BEST WE CAN. UM, THE WORKLOAD IS BEING MANAGED. SOME OF THE THINGS PEOPLE MAY COMMENT ON IS THAT THEY WILL NOT NECESSARILY SEE THE FINAL RESTORATION OF STREET WORK OR LANDSCAPES UNTIL WE GET TO A COOLER PERIOD. WE NEED TO KEEP WATER SERVICE MORE THAN WE NEED TO DO PERFECT RESTORATION. RIGHT NOW, WE ALSO ARE EVEN ADJUSTING OUR METER READERS WORK BECAUSE THEY'RE ALSO SUBJECT TO HEAT CHALLENGES. SO OUR COMMUNITY MESSAGES INCLUDE, UM, PLEASE UNDERSTAND WE'RE PRIORITIZING THESE VERY BIG LEAKS THAT PUT SERVICE AT RISK. WE'RE GONNA BE AT THOSE IMMEDIATELY. AND WE HAVE BEEN FIXING THOSE FAST. THE ONES THAT YOU SEE ON THE BOTTOM RIGHT THAT ARE SEEPING WATER, IT'S UNACCEPTABLE. WE HATE HAVING THAT DELAYED AS A FIX. BUT THOSE ARE GONNA TAKE LONGER. BUT THOSE WILL GET BIGGER IF YOU, EVERYBODY KNOWS WHO'S HAD A LAKE AT YOUR HOUSE, IF YOU DELAY THAT LEAK IS JUST GOING TO BECOME LARGER. SO WE DO DO TELL PEOPLE KEEP TELLING US WHAT'S HAPPENING. IF YOU ARE OBSERVING A SMALL LEAK AND YOU REPORTED IT AND THEN YOU NOTICED IT GOT BIGGER, TELL US IT'LL BUMP IT UP. IF IT'S CAUSING A HEALTH AND HUMAN SAFETY PROBLEM, TELL US, WE'LL BUMP IT UP. BUT THERE'S ANOTHER KEY MESSAGE. SOME OF THOSE SMALL LEAKS, THIS ONE'S COMING FROM GRASS, 75% OF THE ONES THAT ARE COMING OUT FROM A PRIVATE PROPERTY ARE ACTUALLY ON THE PRIVATE PROPERTY ON THE CUSTOMER SIDE. SO IF PEOPLE SEE A SMALL LEAK THAT'S COMING, OFTEN SEEMING FROM THE METER EVEN, WE'RE ASKING THEM TO PLEASE TURN OFF WATER INSIDE, CHECK THE METER TO SEE IF THERE'S STILL MOTION ON THE FINE FLOW INDICATOR, BECAUSE IT MIGHT BE ON YOUR SIDE AND YOU WON'T WANNA DELAY IN FIGURING THAT OUT. NORMALLY WE'D BE OUT THERE PRETTY FAST TO TELL YOU, BUT IT COULD TAKE US LONGER RIGHT NOW. SO IN SUMMARY, UM, WE'VE BEEN WORKING, I SAY WE MEANING REALLY THE GUYS IN THE FIELD, THE, THE MEN AND WOMEN IN THE FIELD, THE HUNDREDS OF THEM DOING JOBS THAT CAN'T BE DELAYED HAVE BEEN WORKING SAFE AND HYDRATING. THERE'S BEEN A LOT OF EMPHASIS ON NOT HAVING, UM, WHAT WHAT COULD BE TERRIBLE HEALTH PROBLEMS AND CONSEQUENCES OTHERWISE. UH, WE CONTINUE OUR PROACTIVE CONSERVATION AND OUR COMPLIANCE EFFORTS. WE HAVE STAFF OUT DOING ENFORCEMENT EVERY HOUR OF THE NIGHT THAT YOU CAN IMAGINE. AND THEN WORKING VERY HARD TO COMMUNICATE WITH PEOPLE IMMEDIATELY AFTER DOING THAT. UM, WE WILL CONTINUE THE DROP MANAGEMENT TEAM TO COMMUNICATE ACROSS SAWS TO ENSURE THAT WE'RE USING THE BEST, MOST CURRENT INFORMATION TO GIVE ADVICE TO OUR EXECUTIVE MANAGEMENT AND MAKE KEY DECISIONS, SUCH AS WHEN WE DECIDED WE NEEDED ANOTHER CAMPAIGN THAT CAME OUT OF THE DROP MANAGEMENT TEAM, RECOMMENDATIONS TO EXECUTIVE MANAGEMENT. WE, WE'VE DONE [01:30:01] A LOT OF COMMUNICATION, WE NEED TO DOUBLE DOWN AND WE NEED TO DO IT THIS WAY. AND WE GOT A QUICK RESPONSE AND DEPLOYED IT WITHIN TWO WEEKS. AND THEN ANOTHER THING TO KNOW IS THAT WE ARE CURRENTLY UPDATING TWO KEY LONG-TERM PLANS. AND AS UNPLEASANT AS THIS YEAR HAS BEEN, IT IS KEY DATA AND IT'S INFORMATION THAT IS GOING TO BE INCORPORATED INTO THE UPDATED WATER MANAGEMENT PLAN THAT LOOKS AT SUPPLY DEMAND, CONSERVATION, DROUGHT RULES, ALL OF THAT. AND THEN ALSO WE DO A POTABLE WATER INFRASTRUCTURE PLAN. SO THE SYSTEM ITSELF IS BEING SORELY TESTED RIGHT NOW, AND THE PEOPLE OPERATING IT ARE TAKING THAT INTO ACCOUNT IN THAT INFRASTRUCTURE PLAN AS WELL. SO I WILL POINT OUT THAT AFTER EVERY MAJOR DROUGHT, I HAVE SEEN SOMETHING COME BACK WHERE WE LEARN FROM IT AND REVISE HOW WE DO THE DROUGHT RULES. THE CHAPTER 34 CONSERVATION RULES HAVE BEEN EDITED AT LEAST 18 TIMES AND ALWAYS FOR THE BETTER. SOMETIMES WE SEE THIS RULE IS ONEROUS AND NOT HELPFUL. WHY ARE WE DOING THIS? WE USED TO ASK PEOPLE TO WASH THEIR CAR ONLY ON THEIR DAY AND THE TIMES USED TO BE 3:00 AM TO 8:00 AM WHY? HOW COULD I POSSIBLY SAY THAT SAVES WATER TO WASH YOUR CAR AT THREE IN THE MORNING. THERE'S NO LOGIC TO IT. SO THAT CHANGED. AND NOW THE RULE IS WASH YOUR CAR WITHOUT WASTE ON SATURDAY OR SUNDAY REASONABLE. UH, AND SO THERE WILL, I I HAVE NO DOUBT THERE'S GOING TO BE MORE COMMUNITY DISCUSSION AFTER WE GET THROUGH THIS RIGHT NOW. THE MESSAGE IS SIMPLE AND CLEAR. THIS IS WHAT WE NEED YOU TO DO. THESE ARE THE RULES TODAY, BUT WE'RE ALSO ASKING PEOPLE TO GO TO WATER CITY SA.COM AND TAKE A LOOK AT THAT WATER MANAGEMENT PLAN TO KNOW WHAT'S COMING AND TELL US THEIR THOUGHTS. AND THEN WHEN WE COME BACK TO, UH, OUR BOARD, TO THE COMMUNITY, WE'LL HAVE SUGGESTIONS AS AS TO HOW WE CAN IMPROVE IN THE FUTURE. SO WITH THAT, I'D, I'D LOVE TO HAVE ANY QUESTIONS. WELL, THANK YOU VERY MUCH, KAREN. UH, IT WAS VERY DETAILED. WE APPRECIATE THAT. I'VE HAD EACH OF THE COMMITTEE MEMBERS ASKED TO ASK SOME QUESTIONS. I'M GONNA GO ON THE ORDER THAT THEY ASKED ME AND I'LL HOLD MY QUESTIONS TILL THE END. I'LL START WITH COUNCILWOMAN MELISSA CAB. HAVADA. THANK YOU CHAIR. UM, THE, THE COUPON PROGRAM. I THINK YOU TALKED A LITTLE BIT ABOUT HOW YOU'RE, UM, WELL, CAN I HEAR MORE ABOUT HOW YOU'RE IN, UM, GETTING THE WORD OUT TO THE COMMUNITY ABOUT THE COUPONS? WELL, THAT'S A GREAT QUESTION AND WE ALWAYS NEED HELP. SO, UM, IF WE CAN PREVAIL UPON COUNCIL MEMBERS TO HELP PUSH OUT INFORMATION ON SOME OF THESE LONG-TERM PROGRAMS, WE'D BE REALLY EXCITED IF YOU HAVE AN INTEREST IN THAT. UM, WE USE, UM, THAT BILL INSERT IS ACTUALLY A VERY EFFECTIVE TOOL. WE ALSO GO DIRECT TO PEOPLE I MENTIONED. WE HAVE EMAILS FOR MORE THAN HALF OF OUR ACCOUNTS. WE WILL DO BOTH DIRECT MARKETING, DIRECT SNAIL MAIL TO CUSTOMERS AND DIRECT EMAIL. I GET A BETTER FASTER RESPONSE FROM EMAIL BECAUSE I CAN MAKE IT EASY, YOU KNOW, TAP HERE TO APPLY. UH, AND SO PEOPLE RESPOND TO THAT EMAIL VERY WELL. THEN WE ALSO USE, UM, SOCIAL MEDIA AND WE USE OTHER, YOU KNOW, RESOURCES TO TRY TO GET THE WORD OUT. WE HAVE A LOT OF PARTNER ORGANIZATIONS. THERE ARE SEVEN NONPROFITS THAT HAVE CONSERVATION EDUCATION CONTRACTS WITH SAS. AND, UM, THEY ARE OUT AND ABOUT IN THE COMMUNITY. OUR PRESENTATIONS NOW, COVID MESSED THIS UP A BIT, BUT WE USUALLY HAVE DIRECT FACE-TO-FACE CONTACT WITH OVER A HUNDRED THOUSAND TO 200,000 PEOPLE A YEAR THROUGH EITHER SAW STAFF PRESENTING OR OUR NONPROFIT COMMUNITY PARTNERS WHO PRESENT ON OUR PROGRAMS AS WELL. SO WHAT INVITE YOU TO, UM, SOME OF OUR NEIGHBORHOOD MEETINGS, UH, AND YEAH, UM, YOU KNOW, WE HAD A, WE ALREADY HAD OUR BUDGET MEETING, BUT IT WOULD'VE BEEN A NICE KIND OF PLACE FOR YOU GUYS TO BE PRESENT. UM, BUT, UH, I'M, I'M VERY INTERESTED IN X ESCAPING, IS THERE, UM, AND I WENT ON GARDEN STYLE SA.COM. I DIDN'T SEE ANYTHING, UM, SPECIFICALLY ON ZAIR ESCAPING. THERE WERE SOME ARTICLES ABOUT IT, BUT IS THERE AN EDUCATIONAL CAMPAIGN OR A COUPON FOR, FOR SPECIFICALLY FOR THAT? THAT'S WHAT THAT IS. I WILL TELL YOU THAT THE WORD ZEROSCAPE IS A CHALLENGING ONE. IT STARTS WITH AN X, PEOPLE DON'T KNOW HOW TO SAY IT, AND THEY GET SOME OF THEM A MENTAL IMAGE THAT THEY FIND NOT PLEASING OF ROCKS AND CACTUS. NOW, IF YOU WANT ROCKS AND CACTUS, WE'RE FINE WITH THAT, BUT PEOPLE OFTEN WANT A DIFFERENT LOOK. SO WE HAVE COINED THIS TERM, GARDEN GARDENING, SAN ANTONIO STYLE, GARDEN STYLE SAN ANTONIO, OR A WATER SAVER LANDSCAPE. SO THE ENTIRE WEBSITE, GARDEN STYLE SAN ANTONIO IS REALLY ALSO SAYING, THIS ISN'T JUST A SPECIAL THING YOU DO, IT'S JUST WHAT WE DO HERE IN SAN ANTONIO. SO EVERYTHING YOU WOULD FIND ON THAT WEBSITE AND THE COUPONS ARE AIMED AT HELPING [01:35:01] YOU ESTABLISH WHAT WOULD BE A ZERO ESCAPE. WE JUST HAVEN'T FOUND THE WORD TO BE EFFECTIVE AS A MARKETING TOOL. IT'S A WEIRD WORD, I'LL GIVE YOU THAT. BUT, UM, BUT, YOU KNOW, THE, THE EFFECTIVE IT, I IMAGINE WOULD BE GREAT ON OUR, ON OUR, UM, WATER USAGE. UM, SO, AND I KNOW THAT THERE, UM, WE'RE, I REALLY WANNA TALK MORE ABOUT ZERO ESCAPING AT, AT THE CITY, BUT AS WE CONTINUE, CONTINUE TO SEE EXTREME WEATHER, UM, IT LOOKS LIKE MAYBE WE'RE WINDING DOWN ON THIS HARD SUMMER, BUT WE NEED TO CONTINUE TO LOOK FOR WAYS TO CONSERVE WATER AND, UM, AS MUCH AS WE CAN HAVE THAT INFORMATION OUT TO THE COMMUNITY. I THINK YOU'RE RIGHT. I THINK PEOPLE THINK ROCKS AND I KNOW THAT A LOT OF NEIGHBORHOOD ASSOCIATIONS DON'T CARE FOR THEM. MM-HMM. . UM, SO THAT'S ANOTHER HURDLE THAT WE HAVE TO JUMP, BUT, UM, I, I'D LIKE TO WORK WITH YOU TO CHANGE THE MINDSET ON THAT. AND THANKS BE MORE RESILIENCY, UM, BRING MORE RESILIENCY AND WATER PRESERVATION. THE, UM, NOT ONLY THE H OA MEETINGS AND STUFF, BUT IF WE CAN PUT STUFF ON OUR SOCIAL MEDIA OR OUR NEWSLETTERS, WE ALL HAVE, YOU KNOW, LITTLE E-NEWSLETTERS AND STUFF THAT WE CAN SEND OUT THAT'S, UH, THOSE USUALLY GET GOOD TRACTION. SO WE'D LIKE TO HELP WITH THAT. THANK YOU. UM, THAT REALLY, THAT'S IT. THAT'S ALL I WANNA TALK ABOUT. THANK YOU. THANK YOU, CHAIR. THANK YOU COUNCILWOMAN. UH, COUNCILWOMAN VEDA, I MEAN, UH, COUNCILMAN ROCHA GARCIA, YOU'RE NEXT. THANK YOU. THANK YOU SO MUCH, UM, CHAIR. AND, UH, I WANTED TO START OFF, UH, DITO ON THE ZEROS KEEPING. I WOULD LOVE IT. I I, I WOULD LOVE TO DO IT MYSELF. AND SO I DIDN'T REALIZE THAT YOU ALL HAD A PROGRAM, SO MY APOLOGIES FOR THAT. SO I'VE LEARNED ALREADY TODAY AND I THOUGHT, OH, THIS IS PERFECT. SO, UM, I'D, I'D LOVE TO, UM, TO WORK WITH YOU ON, ON THAT. GREAT. SO HAPPY TO DO THAT. AND THEN ALSO THE PURPLE PIPE SYSTEM. MM-HMM. , I DO THINK THAT WE NEED TO CONTINUE INVESTING IN THAT. I TALKED, I WAS TALKING ABOUT SOMEONE, I WAS AT A CONFERENCE, UM, RECENTLY AND I MENTIONED THAT OUR PURPLE PIPE SYSTEM, UM, STILL NEEDED SOME ADDITIONAL ATTENTION AND THEY WERE LIKE, WHAT'S A PURPLE PIPE SYSTEM? AND SO I GOT TO TALK ABOUT IT. OH, GOOD. AND THEY WERE VERY EXCITED. UM, I HAVE A QUICK QUESTION. HOW DOES THE, UH, EDWARDS AQUIFER AUTHORITY TRACK HOW MUCH PERMIT HOLDERS ARE USING FROM WELLS? AND IS IT JUST AN HONOR SYSTEM OR IS THERE A METER MEASURING? WE HAVE A METER MEASUREMENT AT THE WELLS THAT WE PRODUCE WATER FROM. OKAY. AND, UH, AND THEN WE REPORT, UH, WE'VE ACTUALLY UPGRADED THOSE METERS YEARS AGO WORKING WITH THE EDWARDS AQUIFER AUTHORITY TO MAKE SURE THEY WERE GOOD WITH THESE VERY, UM, EXPENSIVE GOOD METERS THAT WERE INSTALLED AT THOSE BIG PRODUCTION SITES. SO, UH, YOU KNOW, IT'S A KEY ISSUE IN TEXAS. SOME PLACES IN TEXAS STILL JUST ESTIMATE HOW MUCH WATER THEY PRODUCE. THEY DON'T HAVE IT METERED. UH, OURS IS DEFINITELY METERED. OKAY, GREAT. ON SLIDE 13, YOU HAVE PART-TIME POLICE OFFICERS AND I SAW A, A ARTICLE AND I THINK YOU WERE QUOTED IN IT 'CAUSE IT SAID LIKE ONE AND DONE. USUALLY SOME HAVE TWO, SOME HAVE THREE. UM, AND IT WAS MORE THAN 2000 CITATIONS. ARE THOSE SS A P D OFFICERS? UM, WE DO HIRE PART-TIME S A P D OFFICERS TO WORK WITH US, BUT WE ALSO ARE ABLE TO HAVE VERY SPECIALLY TRAINED SAW STAFF. OKAY. WHO CAN ALSO WITNESS A VIOLATION AND THEN WE CAN WORK WITH MUNICIPAL COURTS TO GET THOSE FILED WITH A NOTARIZED AFFIDAVIT. IT'S NEVER HEARSAY. SO I ALWAYS REASSURE PEOPLE, IF YOU REPORT WATER WASTE TO US, WE'RE GONNA GET INFORMATION TO THE RESPONSIBLE PARTY. BUT THERE, THE COURTS WOULDN'T ACCEPT, OF COURSE, A HEARSAY, UH, VIOLATION. GOT IT. THANK YOU. AND THEN THANK YOU SO MUCH FOR TAKING CARE OF YOUR EMPLOYEES. I THINK, UM, C P S MENTIONED IT EARLIER AS WELL THAT THEY'RE, UM, DOING DIFFERENT OR TAKING DIFFERENT STRATEGIES, UH, FOR WHEN THEY'RE WORKING. SO I REALLY APPRECIATE THAT. ON SLIDE NUMBER NINE, YOU MENTIONED THAT IT WAS PICK YOUR DAY, BUT THEN FURTHER DOWN THE PRESENTATION YOU MENTIONED LIKE, WE HAVE ASSIGNED DAYS TO WATER. WHAT'S THE DIFFERENCE? OH, I'M SORRY. I, I WAS CONFUSING WITH THAT. UM, IF WE ARE IN DROUGHT RESTRICTIONS, YOU HAVE AN ASSIGNED DAY THAT'S BASED ON YOUR STREET ADDRESS. YEAH. MINE'S ON FRIDAY. I DON'T LIKE IT. OH, I'M SORRY, . THAT'S OKAY. I KNOW FRIDAY'S NOT CONSIDERED BY MANY PEOPLE A DESIRABLE DAY. YEAH. UM, THE, THE WAY THAT IT WORKS, ASSIGNING EVERYBODY ON MONDAY THROUGH FRIDAY DOES SPREAD OUT OUR DEMAND. UM, MANY YEARS AGO BEFORE I WORKED AT SAS, I HEAR THAT WE HAD RULES THAT WERE SOMETHING LIKE TWICE A WEEK AND THE PRODUCTION WAS SO HIGH, THERE WERE PRESSURE PROBLEMS AND ISSUES. AND SO THE SPREADING IT OUT MONDAY THROUGH FRIDAY IS HELPFUL. I ACTUALLY DO RECOMMEND TO PEOPLE IF YOU'RE GONNA RUN AN AUTOMATIC IRRIGATION SYSTEM, JUST EVEN IF WE'RE NOT IN STAGE ONE OR TWO, JUST SET IT ON YOUR ASSIGNED DAY SO YOU DON'T HAVE TO WORRY ABOUT IT IF WE DO GO INTO STAGE ONE OR TWO. GOT IT. AND THEN, UM, SO THE LANDSCAPE TRANSFORMATION IN, IN INCENTIVES, I'D LOVE TO LEARN JUST IN GENERAL ABOUT THAT BECAUSE MY, UH, RESIDENTS REALLY, UM, I THINK WOULD BENEFIT FROM THAT. AND THEN PAGE 13 OR SLIDE 13, WOULD THIS BE KIND OF CONSIDERED, I DON'T WANNA CALL THEM WATER WASTERS, BUT THIS IS THE FIRST MAP [01:40:01] WHERE I AM NOT YEAH. OR SO THE SOUTH SIDE AND, AND I MEAN THAT PICTURE IS COVERING IT. SO, UH, BUT I DIDN'T, OH. AND I DIDN'T MENTION WHAT THAT PICTURE WAS EITHER, DID I . UM, SO IF I WERE TO TAKE THAT PICTURE OF OUR SMART METERS AWAY, UM, YOU WOULD NOT SEE SO MANY SQUIGGLY LINES AROUND THE SOUTHWEST AND SOUTH CENTRAL PART OF TOWN. IT'S NOT THAT WE NEVER GO THERE. THERE'S, YOU CAN KIND OF SEE ONE DOWN THERE . UM, WE GO, IF WE GET COMPLAINTS AND WHERE WE SEE POCKETS OF HIGH DEMAND AND WE GO AND CHECK. 'CAUSE THERE ARE SOME NEW NEIGHBORHOODS THAT HAVE AUTOMATIC IRRIGATION. AND, UM, WE TRY TO PROACTIVELY GET IN THEM WHEN THERE'S NEW CONSTRUCTION. WE MAKE OFFERS TO PEOPLE TO COME OUT AND DO AN IRRIGATION CONSULTATION BECAUSE BOY, THOSE ARE CONFUSING DEVICES AND THEY'LL SKYROCKET YOUR BILL IN A MINUTE. UM, BROADLY WE DON'T SEE THE CHALLENGE WITH HIGH DEMAND IN THE REGIONS OF SAN ANTONIO WHERE YOU DON'T SEE THE SQUIGGLY LINES, UM, THE, THE MARKET PENETRATION WHERE ALMOST EVERY HOME IN SOME OF THESE NEIGHBORHOODS THAT YOU SEE IT, EVERY HOME HAS ONE. AND SO, YOU KNOW, AND THEY'RE OFTEN GATED, H O A DOMINANT COMMUNITIES. AND SO WE ARE HAVING TO REALLY TRY TO PUSH THAT MESSAGE THAT YOU HAVE RESILIENT GRASS, IT'S OKAY FOR IT NOT TO BE GREEN. UM, WE TALK TO THEIR HOAS TO, TO ENCOURAGE THEM, UH, TO NOT PUSH GREEN, UH, GREEN GRASS. UM, AND SO IT JUST SEEMS TO BE HARDER TO GET THE MESSAGE IN THE NEWER NEIGHBORHOODS, ESPECIALLY THAT YOU SEE UP HERE. THANK YOU. THIS IS, I THINK, MAYBE THE FIRST MAP THAT I'M PROUD OF THAT THE SOUTH SIDE DOESN'T HAVE, UM, MUCH ON THERE. SO THANK YOU. AND THEN, UM, THE FIVE YEAR WATER MANAGEMENT UPDATE PLAN MM-HMM. , WILL THAT BE MADE PUBLICLY AVAILABLE? OH, YES. WE ARE GOING TO BE OUT AND ABOUT TRYING TO GET PEOPLE TO GET EXCITED ABOUT IT AND, UH, LISTEN TO THE DETAILS. THANK YOU SO MUCH. THANK YOU, CHAIR. THANK YOU. UH, COUNCILWOMAN SANDOVAL. THANK YOU CHAIR, UH, KAREN. EXCELLENT. UH, PRESENTATION. UH, ROBERT, I KNOW YOU'RE VERY PROUD TO HAVE HER ON, ON STAFF. YOU'RE WORLDWIDE RENOWNED, SO WE'RE VERY WELL IN AFRICA. RIGHT. DIDN'T YOU GO AND GIVE A PRESENTATION THERE ONE TIME? YEAH. YEAH. SO I WAS, SAAS WAS WONDERFUL. OUR COMMUNITY HAS A SISTER CITY IN, UH, IN AFRICA, SO THAT WAS FASCINATING. UM, SO THANK YOU FOR A FURTHER PRESENTATION. GREAT WORK. UM, I, AND I APPRECIATE HOW YOU OPENED YOUR PRESENTATION, UH, BECAUSE WE REALLY HAVE TO BALANCE THE FEAR OF, UH, RUNNING OUT OF WATER AND THE FACT THAT, YOU KNOW, WE HAVE ENOUGH RIGHT NOW WITH THE NEED FOR CONSERVATION. YES. SO IT'S, UH, IT'S A VERY DIFFICULT LINE, I THINK, TO TOW MM-HMM. , BUT YOU HAVE EXPLAINED IT, UH, VERY WELL. UH, I WAS VERY IMPRESSED WITH YOUR DISCUSSION OF THAT CROSS-DEPARTMENTAL TEAM THAT YOU HAVE DURING DROUGHT, UH, TIMES. UH, AND GLAD TO SEE THAT IMPROVEMENTS ARE COMING FROM IT. UM, SO, UH, I ALSO WANTED TO THANK YOU FOR HIGHLIGHTING, UH, THE WORK THAT YOU'RE, THAT THE ORGANIZATION IS DOING AROUND, UH, HEAT ILLNESS, UH, PREVENTION. UH, IT SEEMS ACTUALLY ALMOST LIKE A GOLD STANDARD, THE FACT THAT YOU HAVE ADDITIONAL PEOPLE TO ROTATE. UM, SO I, I IMAGINE THAT THAT'S COSTLY, BUT I CAN SEE WHY IT'S, IT'S NECESSARY, WHICH IS WHY MANY OF US WHO WERE SOUNDING THE ALARM ABOUT CLIMATE CHANGE, UH, A WHILE BACK, WERE SAYING PREVENTION IS SO MUCH MORE COST EFFECTIVE THAN ADAPTING. AND THAT'S THAT. BLESS YOU. AND THAT'S WHAT WE'RE DOING NOW. UH, BUT I'M GLAD, UH, YOU RECOGNIZE HOW, UH, THE ORGANIZATION RECOGNIZES HOW IMPORTANT THAT IS. UM, WHAT THE OTHER THING THAT YOU, YOU HIGHLIGHTED ABOUT THAT, THAT, THAT I WANNA POINT OUT IS THE ROLE OF THE SUPERVISOR OR OF THE EMPLOYER IN THAT JUST THE OTHER DAY, UH, COUNCILMAN DR. CHA GARCIA WAS SAYING THAT HER FATHER WOULD EXERT HIMSELF ON A CONSTRUCTION SITE BECAUSE HE WANTED TO GET THE JOB DONE. MM-HMM. . AND, UH, HE DIDN'T HAVE A SUPERVISOR WHO WAS TELLING HIM, YOU'VE GOT TO STOP, YOU'VE GOT TO TAKE A BREAK. MM-HMM. , ROBERT, GO AHEAD, KAREN. THANK YOU. PLEASE. UH, AND I'LL TAKE THE CORRECTION THAT SHE'S INTERNATIONALLY RESPECTED, NOT JUST NATIONALLY. UH UH, YES. UH, I SAID WORLDWIDE, YEAH, INTERNATIONAL, LIKE PIT BULL. UM, WE HAVE, UM, NOT JUST TO TAKE MORE BREAKS IF YOU NEED THEM, WE HAVE MANDATORY BREAKS, UH, IS WHETHER YOU FEEL IT OR NOT, TAKE A BREAK. AND YES, SOME OF THOSE WORKERS ARE VERY DEDICATED AND SAID, I NEED TO FINISH. I WANT TO FINISH. BUT WE MAKE THEM TAKE THE BREAK. ALSO, WHAT WE HAVE FOUND OUT IS THAT EVEN THOUGH WE'RE ASKING THEM SOMETIMES TO COME IN TO WORK EARLIER TO GET OUT OF THE HEAT, UM, WHAT WE FOUND OUT IS UNFORTUNATELY, UH, THEY INSIST ON FINISHING THAT JOB IN THE EVENING THAT EVEN THOUGH IT'S, IT'S STILL, IT'S FIVE O'CLOCK [01:45:01] WHEN IT'S THE HOTTEST, THAT THEY HAVE ANOTHER 30 MINUTES TO GO AND THEY'LL BE DONE. SO IT IS A, A MANAGEMENT PROBLEM. IT'S AN ISSUE THAT WE HAVE TO MAKE SURE THAT WE GET THE JOB DONE, BUT THE, WE ALSO ARE VERY RESPECT OF THEIR HEALTH AND KNOW THAT WE REALLY, UH, NEED THEM TO TAKE CARE OF THEMSELVES. THANK YOU VERY MUCH ROBERT, AND I APPRECIATE THAT. UM, THE VALUE OF, OF THE EMPLOYEE'S HEALTH. UM, I THINK WE ALSO HAVE A LOT TO LEARN FROM YOU IN, IN THE FUTURE GROUP THAT WILL BE FORMED, THE, THE WORKING GROUP TO DISCUSS, UM, BEST PRACTICES IN HEAT ILLNESS PREVENTION. UM, I ALSO WANTED TO HIGHLIGHT THE, THE ARTICLE, UH, THAT THE COUNCILWOMAN MENTIONED AND, UM, THE, ABOUT THE ENFORCEMENT AND THE HEADLINE SAYS, I FEEL, WHAT WAS IT? UH, AMBUSHED, I FEEL AMBUSHED. UH, BUT LATER IN THE ARTICLE, THE SAME PERSON SAYS, I'M SORRY I VIOLATED THE RULES. I WON'T VIOLATE THEM AGAIN. AND I THINK THAT'S THAT'S A GREAT LINE, . AND IT COULD BE A HEADLINE, BUT UH, I THINK THAT'S EXACTLY WHAT YOU WANT TO HEAR AFTER YOU HAVE A, A CITATION. SO, SO GOOD JOB. UM, SO WHEN IT COMES TO, TO CONSERVATION, UM, YOU TALKED ABOUT A LOT OF, UH, GREAT THINGS LIKE THE CAR WASHES THAT ARE, UM, YOU KNOW, THE, THE WATER EFFICIENT CAR WASHES, THE SPRINKLERS, UM, I'M, AND THOSE ARE ALL CONTAINED IN CHAPTER 34, UH, FOUR MM-HMM. . OKAY. UH, BECAUSE THEY ALL FALL UNDER CONSERVATION, SO THEY'RE, YES, THERE'S A WHOLE SECTION OF CHAPTER 34 THAT IS YEAR ROUND CONSERVATION AND DROUGHT RULES. OKAY. I, I DON'T KNOW IF THE, UH, THE STAFF PERSON I NEED IS HERE TO ASK. UM, WELL, YOU'RE INVOLVED WITH THE U D C UPDATES, RIGHT? SO IF, UH, IF IT'S FOR CONSERVATION, BUT IT'S, UH, IT HAS TO DO WITH, UH, BUILDING A HOME, FOR INSTANCE, THE TYPE OF IRRIGATION SYSTEM OR A RESTRICTION ON IRRIGATION SYSTEMS, WOULD THAT BE PART OF CHAPTER 34 OR CHAPTER 35? I REALLY COULDN'T TELL YOU. WE HAVE TO CHECK WITH D S D. SO WE HAVE, UM, OH, I'M SORRY. WOULD PROBABLY BE PART OF CHAPTER 35. IT RELATES TO BUILDING, OH, MICROPHONE. MM-HMM. COUNCILMAN WILL PROBABLY BE PART OF CHAPTER 35 SINCE IT RELATES TO BUILDING MATERIALS AND THINGS LIKE THAT. THANK YOU. SO THERE, UM, WE HAVE A, A STAFF PERSON AT SAAS WHO'S BEEN PART OF THE U D C UPDATE AND WORKING WITH CITY STAFF TO CLARIFY WHERE WE SHOULD REFERENCE SOME OF THE THINGS IN CHAPTER 34 IN THE U D C TO MAKE THEM EASIER TO FIND. AND SO, UM, THE CITY'S BEEN WORKING WITH US. NOT EVERYTHING THAT WE HAVE IN CHAPTER 34 MAKES SENSE FOR UNIFIED PLUMBING CODE. SO THE CITY'S BEEN VERY HELPFUL IN, UH, DETERMINING WHERE WE SHOULD REFERENCE IT IN BOTH PLACES. ALRIGHT. BUT IN TERMS OF ANY NEW, UH, REQUIREMENTS THAT MOVE US FROM INCENTIVE TO, UH, REGULATION OR TO REQUIREMENT IN THE U D C, UM, AS FAR AS YOU'RE AWARE, NONE OF THAT IS, UM, PROPOSED. THERE AREN'T NEW, UH, NO, THERE'S AT THIS TIME NO NEW REGULATIONS BEING PROPOSED. THE ONLY U D C AMENDMENTS THAT WE'VE TALKED ABOUT IS JUST MAKING SURE THAT PEOPLE FIND IT, YOU KNOW, IN CASE THEY'RE, THEY'RE NOT LOOKING AT CHAPTER 34, THEY'RE LOOKING AT CHAPTER 35. IF IT INVOLVES A BUILDING ISSUE, WE WANT THEM TO, TO BE AWARE OF IT. OKAY. ALRIGHT. WELL MAYBE THAT'S, UM, SOMETHING THAT THE P C D C CAN CAN DISCUSS OR, OR EVEN, UM, MY COMMITTEE ON THE ENVIRONMENT. UM, SO HERE'S A, A CONCERN I HAVE THESE, THE REGULATIONS OR, OR THE WATERING RESTRICTIONS ARE ONLY APPLICABLE TO A JURIS, A MUNICIPALITY THAT ADOPTS THOSE REGULATIONS, RIGHT? YES. UM, SO I WONDER, DO WE NOT HAVE A, I'M SORRY, THEY, DO THEY EXCEPT FOR THE WELLS? NO, YOU, YOU CAN ENFORCE THEM IN THE E T J. OKAY. IN THE E TJ. AND, BUT YOUR SERVICE AREA, IT GOES BEYOND THE E T J, MOSTLY OUR SERVICE AREA IS THE E T J. NOW, I WILL SAY THAT RIGHT NOW, WITH THE GROWTH THAT, THAT WE'VE HAD IN THE SAN ANTONIO WATER SYSTEM, IT'S BECOME A BIT CONFUSING BECAUSE YOU HAVE PEOPLE WHO ARE CLEARLY IN THE CITY OF SAN ANTONIO CITY LIMITS. THAT'S NOT CONFUSING. SOMETIMES PEOPLE THINK BECAUSE THEY'RE IN THE E T J, THEY'RE OFF THE HOOK AND WE'RE TRYING TO MAKE SURE THEY KNOW, I'M SORRY, THESE RULES STILL APPLY. THERE WAS A STATE STATUTE THAT ALLOWS THE CITY OF SAN ANTONIO TO APPLY ALL WATER CONSERVATION REGULATIONS IN THE E T J. UH, SOMETIMES THOUGH IT'S A SEPARATE CITY THAT WE SERVE. HE LOTUS LIVE OAK, YOU KNOW, MANY SEPARATELY INCORPORATED CITIES THAT SAW SERVES. A LOT OF THEM HAVE PASSED A SIMILAR ORDINANCE, BUT IT JUST MAKES IT KIND OF A HODGEPODGE OF, OF WHO HAS THE ENFORCEMENT AUTHORITY. WOULD IT BE HE [01:50:01] LOTUS OR IS IT, ARE THEY, YOU KNOW, THIS CUSTOMER ACROSS THE STREETS IN THE SAN ANTONIO E T J AND THIS ONE'S IN THE CITY OF HE LOTUS. IT IS A BIT CONFUSING WITH ALL THE GROWTH WE'VE HAD. OKAY. UM, I GUESS I WAS WONDERING, ARE THERE SIGNIFICANT AREAS IN THE PARTS OF THE SERVICE AREA THAT ARE NOT SUBJECT TO ANY OF THESE RESTRICTIONS? IT'S, THERE ARE SOME, UM, THAT ARE, THAT, THAT IS THE CASE BECAUSE THE, THE STATE STATUTE SAYS, UH, SPECIFICALLY YOU CAN APPLY A CONSERVATION ORDINANCE IN THE CITY OF SAN ANTONIO, E T J IF THEY ARE A SIZE CUSTOMER. AND SO WE HAVE TO CHECK WHEN WE'RE OUT DOING ENFORCEMENT, ARE WE IN THE E T J, ARE WE IN THE HELLO TO E T J ? ARE WE IN LOTUS ? WHERE ARE WE? AND STAFF LITERALLY ARE CARRYING AROUND THIS DETAILED MAP TO FIGURE OUT AND THEN COMING BACK TO THE OFFICE TO FIGURE OUT WHERE THAT LINE IS. UM, AND THERE ARE A FEW PLACES OUT THERE THAT IT APPEARS TO US TO BE, UM, NOT APPLICABLE BECAUSE IT'S IN THIS LOCATION THAT'S A SEPARATE, SEPARATELY INCORPORATED. AND THAT CITY ISN'T PREPARED RIGHT NOW TO BE DOING ENFORCEMENT. THAT'S THE BIGGEST CHALLENGE IS THE SEPARATELY INCORPORATED CITIES. THEY, THEY ARE SMALLER, THEY DON'T HAVE THE RESOURCES TO DEDICATE TO THIS PROCESS. AND SO THAT'S REALLY WHERE WE'RE CHALLENGED IS THAT WE SERVE QUITE A FEW OF THEM. OKAY, GREAT. UM, THANK YOU, UH, FOR THAT EXPLANATION. SO IT JUST, UM, LIKE ANYTHING, A BEHAVIOR-BASED REGULATION IS SO MUCH HARDER TO REGULATE THAN, UM, SOMETHING THAT'S PERMANENT AND YOU DON'T, THAT'S PART OF THE CONSTRUCTION. UH, SO THANK YOU FOR, FOR DOING THAT WORK. UM, I, UH, I JUST THINK IT'S TIME TO, UM, YOU KNOW, YOU SHOWED US THIS MAP FROM 1956 AND THEN WE SEE NOT A MAP, I'M SORRY, THE CHART. MM-HMM. . AND THEN WE SEE 2011 AND 2022. AND THOSE YEARS ARE A LOT CLOSER TOGETHER THAN 2011 IS TO 1956. SO OBVIOUSLY WE'RE IN A DIFFERENT TIME NOW. AND, UM, I'LL JUST POST TO MY COLLEAGUES IF IT'S TIME TO THINK ABOUT, UM, MORE, UH, SOMETHING A LITTLE BIT MORE SIGNIFICANT WHEN IT COMES TO, TO CONSERVATION. UM, NOT JUST THE, THE INCENTIVE BASE, WHICH IS GREAT. UM, UH, BUT IF WE'RE READY TO MOVE ON TO, UH, TO REALLY ANOTHER STAGE, A STAGE THAT HAS, UM, A LOT MORE PEOPLE IN IT. RIGHT. NOT TO BE CONFUSED WITH STAGE RESTRICTIONS, SURE. A, A PHASE THAT HAS A LOT MORE PEOPLE IN THE SERVICE AREA. A LOT MORE USERS. YEAH. UH, AS WELL AS, UH, A LOT HOTTER, UM, HOTTER TEMPERATURES IN EXTREME HEAT. SO, UM, CONSERVATION PHASE TWO. SO THANK YOU VERY MUCH. THANK YOU, CHAIR. THANK YOU COUNCILMAN. UH, COUNCILMAN BRAVO. THANK YOU CHAIR. AND THANK YOU CUS UH, KAREN FOR THE, UH, UH, PRESENTATION. YOU KNOW, OUR, OUR POPULATION'S GONNA CONTINUE TO GROW MM-HMM. . AND, UM, WE CAN EXPECT OUR WATER DEMAND TO GROW EVEN WITH CONSERVATION EFFORTS. SO I SAW THAT WE STAYED IN STAGE TWO, UH, RESTRICTIONS FOR, UM, FOR THREE YEARS MM-HMM. . AND SO WHY COME OUT OF THAT? YOU KNOW, MY, MY, I'LL GIVE YOU MY ANSWER TO THAT. IT'S A COMPLICATED COMMUNITY CONVERSATION, AND I TELL PEOPLE THESE ARE RULES IN, IN CITY ORDINANCE, AND PEOPLE HAVE A LOT OF VARIED OPINIONS ON THEM. THERE ARE FOLKS WHO SAY, WHY AREN'T WE JUST IN THIS ALL THE TIME? AND THEN THERE ARE FOLKS WHO SAY, WHY WOULD YOU BOTHER ME WITH THIS? IF WE'RE NOT HAVING A PROBLEM, WHY INCONVENIENCE ME? UH, AND SO I THINK THAT IT'S MY PHILOSOPHY TOWARDS IT PERSONALLY IS THAT WE HAVE TO TALK TO PEOPLE ABOUT IT AND SEE WHAT THEIR VIEWS ARE AND TALK TO ALL OF YOU, UH, WHO ARE THE OFFICIALS WHO ULTIMATELY VOTE ON THESE MATTERS TO DETERMINE, UH, WHAT OUR COMMUNITY IS READY TO DO, STAY WITH THE SYSTEM WE HAVE TODAY OR, OR SHIFT TO SOMETHING ELSE. WHEN WAS THE LAST TIME OUR DID, UM, MAKE CHANGES TO WATER RESTRICTIONS? UH, WE MADE SIGNIFICANT CHANGES IS AROUND 2013 TO SOME OF THE RULES, LIKE I MENTIONED, THE ILLOGICAL CAR WASH RULES. UM, AND WE MAINLY WERE LOOKING AT THE RULES TO ASK THE QUESTION. LIKE THE WATERING TIMES CHANGED THE TIMES PEOPLE WERE COMPLAINING ABOUT THEM. IF YOU'RE DRAGGING A HOSE AROUND AND YOU'RE SUPPOSED TO DO THAT AT THREE IN THE MORNING TO EIGHT IN THE MORNING, IT'S DARK. AND WE HAD PEOPLE WHO WERE OLDER WANTING A VARIANCE, WHICH WE GAVE THEM BECAUSE IT WAS UNSAFE TO THEM. SO, UH, WE HAD A HUGE COMMUNITY [01:55:01] CONVERSATION. NOT EVERYBODY'S THRILLED WITH SEVEN TO 11, SEVEN TO 11, BUT IT WAS THE OUTCOME OF STAKEHOLDER AND COMMUNITY CONVERSATION TO SAY, NOW WE CAN SEE THAT IRRIGATION GOING OFF. PEOPLE WHO ARE DRAGGING THEIR HOSES AROUND CAN SEE WHAT THEY'RE DOING. SO WE MADE A LOT OF CHANGES AFTER THAT. WE WENT THROUGH THAT BIG DROUGHT THAT STARTED IN 2011. PEOPLE LIVED THROUGH IT FOR A LONG TIME AND CAME OUT OF IT WITH A LOT OF OPINIONS. I WILL BE SURPRISED IF WE DON'T START HAVING A PRETTY SIGNIFICANT C IMMUNITY CONVERSATION AFTER THIS SUMMER. YEAH. AND SO HOW DID WE LAND ON SEVEN TO 11? BECAUSE MM-HMM. TO ME, UM, YOU KNOW, 7:00 PM DOESN'T SOUND SOUND VERY LATE IN TERMS OF, YOU KNOW, THE SUN BEING DOWN AND IT'S STARTING TO COOL OFF. MM-HMM. AND 11 SOUNDS PRETTY LATE IN THE MORNING. YOU KNOW, IT'S ALREADY PRETTY HOT AND YOU'RE ALREADY MM-HMM. LOSING A LOT OF THAT WATER THAT YOU'RE TRYING TO IRRIGATE YOUR PLANTS WITH. YOU'RE ALREADY LOSING A LOT OF THAT TO EVAPORATION. SO IT'S A, IT'S A SITUATION OF LOOKING AT, UM, WHERE WE THINK WE GET THE BIGGEST GAIN. AND ONE OF THE PROBLEMS WE SAW CHRONICALLY WHEN PEOPLE'S IRRIGATION WAS GOING OFF IN THE MIDDLE OF THE NIGHT, IS THAT THEY ARE TERRIBLY PRONE TO PROBLEMS MISSING NOZZLES, BREAKS IN THE PIPES, HORRIBLE PROBLEMS THAT JUST GUSH WATER DOWN THE STREET. AND THE ANSWER WE WOULD HEAR AGAIN AND AGAIN FROM PEOPLE IS, I NEVER SEE IT. IT'S GOING OFF IN THE MIDDLE OF THE NIGHT. I DON'T KNOW WHAT IT'S DOING. AND THEN BY THE TIME I GET UP, IT'S DRIED UP AND I'M GONNA WORK. AND IT'S, I DON'T KNOW. AND SO THERE'S A LOT OF WASTE FROM IRRIGATION MALFUNCTIONING THAT PEOPLE, WHEN PEOPLE CAN'T SEE IT. AND THEN THE OTHER THING WAS THAT PEOPLE WHO DRAG AROUND THE HOSES, UM, A LOT OF THEM FELT THEY REALLY WANTED TO BE ABLE TO SEE WHAT THEY WERE DOING. UH, THE INITIAL PROPOSAL WAS SIX TO 10, AND THEN WHEN WE HAD THE LOCAL SAN ANTONIO NEGOTIATION ASSOCIATION, THEY FELT STRONGLY IT SHOULD BE SEVEN TO 11. SO IT WAS A COMPROMISE. UM, WE LOOKED AT THE EVAPORATIVE RATES AND THE WIND SPEEDS FROM 10 TO 11 AND CONCLUDED IT'S ACTUALLY NOT AS MUCH OF AN INCREASE AS YOU'D THINK FROM 10 TO 11. UM, AND WE HAVE SEEN A LOT OF GAIN FROM BEING ABLE TO SEE THE RUNOFF WHEN THERE'S A PROBLEM WITH THE IRRIGATION, WHEN IT'S GOING OFF, WHEN PEOPLE SEE IT. THAT PERSPECTIVE, YOUR SEVEN 11 TIMEFRAME IS WORKING GREAT IN TERMS OF SEEING THE ING YES. WAYS. I, I SEE IT ALL THE TIME. YEP. AND SO I'M JUST CURIOUS, WHAT, WHAT MORE CAN BE DONE ON ENFORCEMENT AND HOW DO YOU DO THAT? HOW DO YOU DO ENFORCEMENT IN GATED COMMUNITIES? BUT I SEE IT IN GATED COMMUNITIES, IT SEEMS LIKE IT'S EVERYBODY. LIKE I, YOU KNOW, I, YOU KNOW, IT'S, IT'S NOT ISOLATED INCIDENTS. AND THEN I ALSO SEE IT, YOU KNOW, IN PRIVATE INDUSTRY TOO, AND PUBLIC INSTITUTIONS. SO IT'S NOT JUST HOMEOWNERS. I SEE IT ON SIDEWALKS, I SEE IT IN DRIVEWAYS, I SEE IT GOING DOWN THE STREET. MM-HMM. , WELL, PEOPLE REPORTING IT IS VERY HELPFUL BECAUSE WE GET TO THE RESPONSIBLE PARTY, WE TELL THEM THERE'S A PROBLEM, WE KEEP HEARING IT, WE GO BACK, WE'RE MONITORING THAT PROPERTY. THIS THING I NEGLECTED TO MENTION WHY THAT PICTURE WAS THERE IS OUR SMART METERS. WE ARE REALLY LOOKING FORWARD TO GETTING TO FULL DEPLOY DEPLOYMENT OF CONNECT H TWO O, THE SMART METERS THAT ARE GONNA GIVE A READING EVERY HOUR, 24 HOURS A DAY, BECAUSE THAT CAN DISCERN IRRIGATION CYCLES. IT CAN TELL IF THE VOLUME IS INCREASING. AND THEN WE CAN RUN ALGORITHMS ON THAT AND BE VERY CLEAR WHERE THERE'S MULTIPLE IRRIGATION CYCLES A WEEK AND REACH OUT TO PEOPLE AND SAY VERY DIRECTLY, THIS IS WHAT WE'RE SEEING, PLEASE CORRECT IT. UTILITIES THAT ARE DOING THAT TELL ME THAT 80% OF PEOPLE MAKE A CORRECTION WHEN THEY ARE FACED WITH VERY DEFINITIVE DATA LIKE THAT. ALSO KNOWING THERE'S A CONSEQUENCE IF IT STAYS THAT WAY AND SOMEONE COMES AND OBSERVES IT. SO WE ARE PRETTY EXCITED ABOUT THAT FOR NOW. WE'RE USING THE DATA WE HAVE TO GET OUR EYES ON IT. AND, UM, WE KNOW FROM DOING THIS IN 2011, THAT YOU REACH A TIPPING POINT WHERE YOU'VE COMMUNICATED ENOUGH DIRECTLY TO ENOUGH PEOPLE. ARTICLES, I HAVEN'T READ THAT ARTICLE YET. I'M I'M GONNA LOOK IT UP. I REMEMBER TALKING TO THAT REPORTER. BUT WE START TO GET MORE CHATTER IN THE COMMUNITY AND PEOPLE WHO PREVIOUSLY WERE JUST OUT OF SIGHT, OUT OF MIND, NOT RESETTING THEIR IRRIGATION, NOT LOOKING FOR THE WASTE, ARE SUDDENLY MAKING IT A HIGHER PRIORITY. WE SAW A 20 G P C D DROP FROM 2011 TO 2012, AND THAT WAS INCREASED COMPLIANCE. AND IT DIDN'T HAPPEN OVERNIGHT. IT TOOK MONTHS TO GET FROM PEOPLE NOT BEING SO AWARE TO BEING ONBOARD, MOSTLY FOLLOWING STAGE TWO, AND VERY AWARE OF THAT WATER SPRAY. ONE OF THE THINGS WE'RE DOING AT COMMERCIAL PROPERTIES IS WE ARE MAKING THEM A REALLY GOOD OFFER RIGHT NOW. UM, SPRAY IRRIGATION ON PARKING LOT ISLANDS. WHY SO FRUSTRATING? HAS ANYBODY DRIVEN THROUGH A PARKING LOT FROM SEVEN TO 11 IN THE MORNING AND THE WATER IS EVERYWHERE. WE ARE OFFERING THEM $300 AN ISLAND TO ELIMINATE THAT SPRAY, PUT A BUBBLER IN THAT WILL SUPPORT THE SHRUBS AND THE TREES. [02:00:01] WHY HAVE GRASS? WHY WOULD YOU WANNA MAINTAIN GRASS ON A PARKING LOT ISLAND? KEEP THE TREES, KEEP THE SHRUBS AND WATER THEM MORE EFFICIENTLY SO WE DON'T HAVE THAT WATER WASTE EVERYWHERE. SO WE'RE MAKING THEM A REALLY GOOD OFFER AT THE SAME TIME THAT THEY KNOW WE'RE ENFORCING. SO WE DO IN THE MIDST OF THESE CHALLENGES, HAVE OPPORTUNITIES TO GET A LONG-TERM IMPROVEMENT AND WE'RE TRYING TO TAKE THEM. OKAY. UM, I THINK THOSE ARE ALL MY QUESTIONS. THANK YOU. THANK YOU, COUNCILMAN. I HELD BACK ON MY QUESTIONS, SO I'M GONNA GO AHEAD AND, AND BRING 'EM UP. NOW, RELATED TO THIS, UM, ARE SOME OF THE WATER RESOURCES WE USE AROUND, AND WE MENTIONED MANY ARE SOME OF THEM, UM, USED MORE IN SOME AREAS THAN OTHERS. AND, AND THIS IS THE THOUGHT I HAD, FOR EXAMPLE, UH, OUR A S R, UH, DOES THAT PROVIDE MORE WATER IN THE SOUTHWEST PART OF TOWN, OUR AQUIFER? DOES THAT PROVIDE MORE WATER IN THE NORTHWEST OR, OR THE WESTERN PART OF TOWN? DOES, UH, VISTA RIDGE SUPPLY MORE WATER IN THE NORTH SIDE OF TOWN? BECAUSE THIS IS WHERE SOME OF THESE SOURCES ARE LOCATED? SO, UM, SHORT ANSWER IS YES. UM, THE VISTA RIDGEWATER IS AN INTERESTING EXAMPLE. IT'S A LOT OF WATER. AND ON A COLD WINTER DAY WHEN DEMAND IS LOW IN THE NORTH SIDE OF TOWN WHERE IT COMES IN, THAT WATER MAKES ITS WAY DOWN TO A SURPRISING PART OF SAN ANTONIO. AND SO PEOPLE MIGHT GET IT AS FAR SOUTH AS FOUR 10 WHEN IT'S EXTREMELY HOT AND DRY AND DEMANDS ARE HIGHER, THAT VISTA RIDGE WATER WILL GET TAKEN UP CLOSER TO WHERE IT'S COMING INTO THE SYSTEM. MM-HMM. . UM, AND THAT SAME KIND OF PATTERN IS TRUE ACROSS ALL OF SAWS, BUT IT'S ALL GOOD WATER. MM-HMM. . YEAH. AND, AND WE VIEW IT AS, UH, IT'S ALL CHARGED THE SAME. AND, UM, AT MY HOUSE, I SOMETIMES GET A LITTLE TRINITY WATER. I GET A LOT OF VISTA RIDGE WATER. I USED TO GET EDWARDS AND TRINITY, AND IT'S ALL GOOD WATER. MM-HMM. . SO IT DOESN'T CHANGE THE RATE I PAY. AND WE HAVE, UM, A WHOLE TEAM OF PEOPLE WHO WATCH THE PARAMETERS OF THE CHEMISTRY OF THAT WATER ALL THE TIME. AND THEY, INTERESTINGLY, BECAUSE THEY TAKE SAMPLES CONSTANTLY, DON'T ASK ME TO EXPLAIN THE CHEMISTRY, IT'S VERY INTERESTING. BUT I DIDN'T RETAIN IT. I JUST KNOW THAT BECAUSE OF THEIR SAMPLING, THEY KNOW AT ANY GIVEN TIME WHERE EACH SUPPLY IS GOING SO THAT IF THERE'S A COMPLAINT, THEY KNOW WHICH WATER SOURCE IT MIGHT BE PERTAINING TO. MM-HMM. , I KNOW WE TALKED ABOUT A LOT OF DIFFERENT RESOURCES THAT WE HAD HAVE AVAILABLE, AND I REMEMBER IN SITTING IN, IN A COUPLE OF SAWS MEETINGS ABOUT SOME OF THOSE MAY BE EXPIRING. SOMETIMES SOME OF THOSE CONTRACTS ARE, I'D BE INTERESTED IN, IN HEARING, UH, THE PURVEYORS WE WERE USING NOW, HOW MANY OF THEM ARE GONNA CONTINUE? HOW MANY OF THEM, UH, ARE ARE WE LOOKING AT ANY OTHER NEW SOURCES THAT WE MAY BE BRINGING ON BOARD? SO MAYBE A LITTLE SEPARATE REPORT, WE CAN DRAW THAT UP AND, UM, AND LOOK AT THE DIFFERENCE IN THE COST THAT WE PAY FOR SOME OF THOSE. AND I KNOW THAT MAY DETERMINE ARE WE GONNA KEEP, UH, A CONTRACT OR RENEW A CONTRACT? SO I THINK THAT'D BE SOMETHING THAT, THAT WE'D LIKE TO KNOW A LITTLE MORE OF. YES. AND YOU'RE AB YOU'RE ABSOLUTELY RIGHT. UH, CHAIRMAN, COURAGE, UM, UH, SOME OF THE WATER IS TOO EXPENSIVE TO CONTINUE ON WITH THAT CONTRACT. UH, SOME OF 'EM IS ENTIRELY UP TO US, WHETHER WE CONTINUE THAT CONTRACT, SOME OF IT IS UP TO THE OTHER PARTY. SO WE WILL HAVE A DETAILED, UH, PART ANSWERS TO THOSE IN OUR WATER MANAGEMENT PLAN. GREAT. THANK YOU. UM, ARE ANY OF OUR WATER SOURCES DRYING UP AND RE OR NOT PRODUCING FOR US? WELL, THE WORST, THE, THE SHORT ANSWER IS NO. THERE WERE SOME SUPPLIES THAT, UM, REALLY WERE WITH THE FORMER BARE MET UTILITY. YEAH. THAT, UM, MEDINA SAWS DOES NOT USE MEDINA LAKE WATER AT THIS POINT. UH, THAT'S A GOOD THING. GIVEN WHAT'S HAPPENING WITH MEDINA LAKE. UM, WE DO NOT EXPECT THE TRINITY SUPPLIES TO BE DROUGHT FIRM. THAT'S ANOTHER ONE THAT SOME OF THOSE CAME FROM FORMER BARE MET. UM, SO THOSE ARE, THAT TRINITY IS TINY. WE DON'T EXPECT MUCH OF IT, HONESTLY, IS MY TAKE ON IT. UM, BUT THE MAJOR SUPPLIES THAT I SHOWED YOU ABOUT, YOU KNOW, THE VISTA RIDGE, THE AQUIFER STORAGE AND RECOVERY, BRACKISH DESALINATION EDWARDS, THOSE ARE, WE, WE HAVE A HIGH EXPECTATION THAT THOSE WILL REMAIN DROP FIRM. I GUESS I WAS JUST WONDERING IF ANY OF THE CONTRACTS WE HAVE AREN'T PRODUCING BECAUSE OF THE, THE HEAT AND THEY'RE NOT ABLE TO. SO NO, NOT, NOT THOSE SIGNIFICANT SUPPLIES. OKAY. NOW HOW'S THE DESALINIZATION FUNCTIONING, UH, UH, AND THE ASR TWO WITH THIS HEAT AND THE LACK OF RAIN, UH, AND ARE WE USING THE DESAL A LITTLE BIT MORE ON BRACKISH WATER? I NOTICED IT WAS JUST 5%. [02:05:02] SO, YOU KNOW, ARE, ARE THEY ALSO STRUGGLING BECAUSE OF THE HEAT TO KEEP WATER IN THERE AND, AND TO PRODUCE MORE THROUGH THE DESAL? THAT'S A GREAT QUESTION. AND IT WAS, IT'S 5 MILLION GALLONS A DAY, WHICH IS ACTUALLY A LOT OF WATER. UM, BUT THE AQUIFER STORAGE AND RECOVERY WAS INTERESTINGLY PLANNED FOR A TEST OF HIGH PRODUCTION THIS SUMMER, EVEN BEFORE THE DROUGHT OCCURRED. WHEN WE DO OUR WATER MANAGEMENT PLANS, ONE OF THE THINGS THAT WE LOOK AT IS, IN A WORST CASE SCENARIO WHERE WE REALLY WANNA CUT BACK FROM THE EDWARDS, JUST HOW MUCH CAN WE BRING BACK FROM THOSE OTHER SUPPLIES? AND THE FOLKS WHO MANAGE THE AQUIFER STORAGE AND RECOVERY AND PRODUCE FROM IT REALLY WANTED TO TEST THAT CAPACITY. IT'S ONE THING TO HAVE IT ON PAPER AND SAY, THEORETICALLY IT SHOULD PERFORM THIS WAY, BUT THEY'RE MANAGING, UH, THREE DIFFERENT SUPPLIES FROM THAT SAME H TWO OAKS FACILITY, AND THEY REALLY WANTED TO PUSH HARD ON THE A S R WATER. I BELIEVE THEY'VE NOW TURNED UP THE BRACKISH A LITTLE BIT. UM, BUT THEY'RE TESTING OUT SEVERAL THINGS AND INTENTIONALLY WERE PUSHING HARD ON THE A S R AND NOW TO HAVE DECIDED PA POST THE TEST. YES, IT PASSED WITH FLYING COLORS. THEY'RE KEEPING THAT GOING UNTIL THEY START. WE START TO SEE MORE RECOVERY FROM THE EDWARDS. CAN WE EXPAND THAT A S R, UM, BEYOND WHAT ITS CURRENT CAPACITY IS? WOW. IT'S, IT'S SO MUCH BIGGER THAN SAWS EVER EXPECTED IT TO BE. OKAY. IT'S HAD 185,000 ACRE FEET, UH, CURRENTLY APPROXIMATELY IN IT. UM, IT WAS ORIGINALLY PLANNED FOR, GOSH, I CAN'T REMEMBER WHAT, IT WAS SO MUCH LOWER, AND THEN IT KEPT EXPANDING. SO IT PROBABLY COULD BE, WE KNOW BRACKISH DESALINATION COULD BE EXPANDED TO BE MORE. AND SO THE WATER MANAGEMENT PLAN WILL COME BACK AND PROPOSE OPTIONS, UH, TO SAY, WHEN DOES IT LOOK LIKE WE NEED TO HAVE MORE WATER? AND WHAT ARE THE MOST REASONABLE COST EFFECT EFFECTIVE OPTIONS WHEN THAT TIME COMES BASED ON, YOU KNOW, ANALYZING THE POPULATION GROWTH, THE PER CAPITA DEMAND, EVERYTHING. YOU KNOW, UH, WE, WE TALKED ABOUT, UH, OTHER, UH, ENTITIES, UH, HAVING THEIR OWN WAY OF DEALING WITH, UH, THE HEAT, THINGS OF THAT NATURE. UM, WHAT IS OUR RELATIONSHIP REGARDING WATER WITH THE COUNTIES AND THE REGION AROUND US? BECAUSE WE'RE SUCH A, A BIG USER, ARE WE HAVING OTHER AREAS SAYING, HEY, WE'RE HAVING SO MUCH TROUBLE, UH, WE NEED YOUR WATER. OR ARE WE SAYING, ARE WE HEARING, UH, YOU KNOW, LIKE UP IN BURLESON COUNTY, ARE THEY SAYING, HEY, WE NEED TO LIMIT THE PUMPING THAT YOU'RE GETTING, OR ANY OF THE OTHER RESOURCES AND COUNTIES AROUND US? WELL, WE KEEP UP A, AN OPEN CHANNEL OF COMMUNICATION WITH THE COMMUNITIES AROUND US AND HAVE A, AN AWARENESS OF WHAT THEY'RE EXPERIENCING. UM, I'VE HAD CONVERSATIONS WITH, UH, MY COUNTERPART NEW BRAUNFELS IN AUSTIN, YOU KNOW, GEORGETOWN ROUND ROCK TO ASK, HOW'S IT GOING FOR YOU? UM, I KNOW OTHER FOLKS WHO MANAGE THE, UM, THE RELATIONSHIP WITH THE VISTA RIDGE, UH, PROVIDER HAVE SAID THAT, YOU KNOW, THINGS SEEM TO BE VERY SOUND RIGHT NOW. UH, SO SAWS IS, IS CONSTANTLY MAINTAINING THOSE REGIONAL RELATIONSHIPS AND AWARENESS. UM, THERE IS THE POSSIBILITY OF EMERGENCY CONTRACTS, UH, WITH SAWS, BUT THEY'RE REALLY INTENDED TO BE, IF SOMEBODY'S AN IMMEDIATE, SOMEBODY IMMEDIATELY AROUND US IS TRULY AN EMERGENCY, IT'S NOT, WE WOULD NOT ENCOURAGE ANOTHER UTILITY TO BE USING A LOT OF WATER DURING DROUGHT IN A DISCRETIONARY WAY, AND THEN SAY, WE NEED MORE FROM SAWS. UM, THE AGREEMENTS THAT ARE A POSSIBILITY ARE REALLY INTENDED FOR, YOU'RE JUST PROVIDING HEALTH AND HUMAN SAFETY WATER AND YOU'VE HAD AN EMERGENCY AND YOU NEED OUR HELP, IF THAT MAKES SENSE. MM-HMM. , UM, WE WOULDN'T SEE A LOGIC TO A DROUGHT INTERCONNECT THAT WOULD JUST HELP ANOTHER ENTITY KEEP GRASS GREEN. OKAY. UM, ARE WE CONSIDERING SELLING WATER OUTSIDE OF SAWS LIMITS RIGHT NOW? I AM GONNA ASK DONOVAN TO TALK ABOUT THAT ONE. YEAH. UH, SO WE DO HAVE A WHOLESALE PROGRAM THAT, THAT WE HAVE THE ABILITY TO WHOLESALE VARIOUS, UH, WATER SUPPLIES TO, TO OTHER PEOPLE. UM, THOSE, OUR GOAL IS TO PROVIDE WATER TO OUR CUSTOMERS. UH, WE DO WORK WITH THOSE ENTITIES. AND IF THERE IS AN OPPORTUNITY TO, TO HAVE A SORT OF A WIN-WIN SITUATION, THAT THAT IS SOMETHING WE WOULD TAKE TO OUR BOARD ULTIMATELY TO, TO, TO YOU AS WELL. UM, IT, IT'S USUALLY A QUESTION OF ALSO, UM, THE WATER SUPPLY THAT WE DO. FOR EXAMPLE, IF IT'S A VISTA RIDGE WHOLESALE, IF IT'S DIRECTLY FROM THE VISTA RIDGE LINE, WE WOULD NEED TO COME BACK TO YOU FOR A WHOLESALE, UM, RATE. SPECIFICALLY FOR THE VISTA RIDGE. WE HAVE SOME OTHER, UH, ISSUES OUTSIDE OF, FOR EXAMPLE, OUTSIDE OF THE EDWARDS AQUIFER BOUNDARY THAT WE CAN'T WHOLESALE EDWARDS AQUIFER WATER. SO IT'S [02:10:01] A, IT'S, UM, A LITTLE BIT OF A DISCUSSION ON EACH PARTICULAR WATER SUPPLY AND PARTICULAR ENTITY. UM, BUT WE DO HAVE FOUR DIFFERENT, UM, UH, WHOLESALE AGREEMENTS WITH DIFFERENT ENTITIES CURRENTLY. WHAT ARE THOSE? WE HAVE A CITY OF EL OR ELMENDORF, UH, EAST CENTRAL, AN ENTITY ENTITY CALLED THE OAKS. UM, VERY SMALL ENTITY, AND THEN A W C I D IN KENDALL COUNTY. OKAY. BUT THEY'RE REALLY CLOSE. YEAH. VERY, VERY CLOSE. WE HAVE HAD A LOT OF INTEREST, UM, UM, DISCUSSIONS WITH PEOPLE UP AND DOWN THE I 35 CORRIDOR. OBVIOUSLY A WHOLE LOT OF GROWTH. AND NOW THERE WAS ALREADY AN ENORMOUS AMOUNT OF GROWTH. THEN YOU PUT THE SEMICONDUCTOR INDUSTRY THAT THAT MIGHT BE GROWING UP THERE AS WELL. UM, SO I THINK THERE WILL BE MORE DISCUSSIONS INTO THE FUTURE, PARTICULARLY ALONG THE I 35 CORRIDOR. WHAT DOES THAT MEAN FOR, FOR BI RIDGE? AND SO THOSE, THOSE, THOSE QUESTIONS WILL BE COMING. I THINK THE LAST QUESTION I HAVE REGARDING THIS IS, I REMEMBER LAST, WELL, THE WINTER BEFORE LAST WHEN WE HAD THE TERRIBLE STORM IN FEBRUARY, AND WE HAD ALL KINDS OF PROBLEMS WITH BREAKAGE OF, UH, OF INDIVIDUALS HOMES, PLUMBING. AND I KNOW THAT AT THAT TIME, UH, SEE SAWS SAID, WELL, WE'LL TRY AND GIVE ADVICE AND HELP PEOPLE IN THAT SITUATION. 'CAUSE UH, WE DON'T WANT ALL THAT WATER RUNNING DOWN THE STREET, EVEN IF IT ISN'T A, A SAWS PIPE THAT BROKE. AND I THINK WE WERE REFERRING PLUMBERS OR WHAT KIND OF PROGRAM WAS IT THAT WE HAD THEN? AND IS THAT SOMETHING THAT'S AVAILABLE TO HOMEOWNERS NOW DURING THE HEAT WHEN PIPES ARE BREAKING? SO THE STORY OF THE COMMUNITY PIPE REPAIR, UH, PROGRAM IS, UH, SOMETHING THAT SHOULD MAKE SAN ANTONIO PROUD AS A COMMUNITY. UH, WHEN WINTER STORM URI THAW WAS OCCURRING, AND IT WAS BECOMING EVIDENT THAT THOUSANDS OF PIPES WERE BREAKING ON THE CUSTOMER SIDE, UM, MR. PUENTE AND THEN OTHER LEADERS IN THE COMMUNITY, THE MAYOR AND OTHERS WERE DISCUSSING WHAT TO DO ABOUT IT, THAT THESE ARE PRIVATELY OWNED, THIS IS GOING TO BE A MASSIVE PROBLEM. PEOPLE WILL NOT HAVE WATER IN THEIR HOMES. AND THE, UM, LEGAL DEPARTMENT AT SAS WORKED, UH, LITERALLY THROUGH THE NIGHT WITH THE SAN ANTONIO AREA FOUNDATION TO ESTABLISH A FUND TO TAKE IN DONATIONS FROM COMMUNITY FOUNDATIONS. UH, THERE WAS ULTIMATELY $1.2 MILLION DONATED TO THE COMMUNITY PIPE REPAIR FUND, AND THEN THE CONSERVATION DEPARTMENT WAS TASKED WITH STANDING UP A PROGRAM TO TAKE IN APPLICATIONS WITHIN 48 HOURS OF THE FUND BEING ESTABLISHED. UM, THEY EXPECT A LOT, UH, BUT OUR COMMUNITY NEEDED IT. UH, AND THAT, THAT WAS BECAUSE WE RUN THE PLUMBERS TO PEOPLE PROGRAM AND ALREADY HAD A TRACK RECORD OF DOING, UH, CUSTOMER PIPE REPAIRS FOR PEOPLE IN POVERTY. UH, THAT PROGRAM ULTIMATELY RESTORED WATER AND SEWER SERVICES TO OVER 1200 HOMES WHERE FRANKLY, OTHERWISE SOME OF THESE FOLKS WOULDN'T HAVE A HOME ANYMORE. THEY WERE NOT IN A POSITION TO REPAIR THESE PROBLEMS THAT HAD PUT THEM OUT OF WATER AND SEWER SERVICE. RIGHT. AND SO, IT, IT WAS REALLY A TREMENDOUS STORY OF THE COMMUNITY STEPPING UP, RECOGNIZING A PROBLEM, DONATING MONEY. THERE WERE HUNDREDS OF PEOPLE WHO PUT PRIVATE DONATIONS INTO THAT. SO IT WAS BIG FOUNDATIONS LIKE THE SPURS, AND THEN ALSO MANY PRIVATE INDIVIDUALS WHO MADE THAT POSSIBLE MM-HMM. , UH, IS SOMETHING LIKE THAT AVAILABLE? BECAUSE I HEAR, YOU KNOW, THERE'S A LOT OF PEOPLE'S HOMES THAT ARE HAVING THE SAME PROBLEM WITH THEIR PIPES ADJUSTING BECAUSE OF THE DRYNESS AND THE, THE MOISTURE OF THE CLAY SOIL AND STUFF LIKE THAT TODAY. MAYBE NOT IN THE TENS OF THOUSANDS THAT WE HAD THEN. YEAH. THERE. BUT DO WE HAVE A SIMILAR PROGRAM AVAILABLE NOW? WELL, WE, WE HAVE PLUMBERS TO PEOPLE ALWAYS. THAT'S OUR OLDEST CONSERVATION PROGRAM THAT'S BEEN IN PLACE SINCE THE, SINCE THE START OF CONSERVATION AT SAN ANTONIO WATER SYSTEM. UM, AND SO FOR PEOPLE WHO ARE LIVING IN THEIR OWN HOME AND THEY ARE AT 125% OF POVERTY, WE SEND A LICENSED PLUMBER TO REPAIR THINGS FOR THEM, FOR EVERYONE. WE DO A BIG CAMPAIGN, THE BE READY CAMPAIGN, UH, TO HELP PEOPLE UNDERSTAND WHAT SIMPLE STEPS THEY CAN TAKE TO WINTERIZE THEIR PIPES SO THAT THEY CAN BE READY. WE TALK ABOUT SHOULD WE GET THESE SEVERE FREEZES AGAIN, YOU KNOW, NORMALLY IT'S NOT NECESSARY TO ANY RUN WATER THROUGH THE NIGHT IN ORDER TO AVOID A PIPE BREAK. THAT WEATHER EVENT WAS SO EXTRAORDINARY, IT WAS NECESSARY. SO WE'VE HAD THIS AN ENORMOUS CAMPAIGN TO HELP PEOPLE UNDERSTAND WHAT IT MEANS TO BE READY. WE'VE DONE FREE WINTERIZATION FOR THOSE PLUMBERS TO PEOPLE, CUSTOMERS. WE OFFERED A SPECIAL REBATE TO FOLKS WHO DID WINTERIZATION, UH, AS WELL TO FURTHER ENCOURAGE ALL CUSTOMERS TO MAKE SURE THEIR HOMES [02:15:01] WERE READY. SO IT'S BEEN THIS MULTIPLE LAYERED APPROACH, REALLY BEING PROACTIVE TO BE READY SHOULD AN EVENT LIKE THAT OCCUR AGAIN. OKAY. BUT IT DOES, IT'S NOT ADDRESSING THAT ISSUE THE SAME WAY BECAUSE WE'RE IN THE SUMMER MM-HMM. . OKAY. IT'S, IT'S GEARING UP AGAIN TOWARD IF WE HAVE A SITUATION LIKE THAT AGAIN IN THE WINTER. THAT IS TRUE. THE, WE ARE ANECDOTALLY HEARING OF MORE PEOPLE HAVING, UM, AS I MENTIONED, 75% OF THE SMALL LEAKS COMING FROM A PROPERTY ARE OFTEN AUDIT FROM THE IRRIGATION SYSTEM. UM, THOSE P V C PIPES UNDER THE GROUND ARE KIND OF FRAGILE AND THE GROUND SHIFTS AND THEY MOVE. UM, THEY CAN GET A, A MODEST BILL CREDIT ONCE THEIR WATER USE RETURNS TO NORMAL. UH, MORE OF A BILL CREDIT IF IT WAS THEIR SERVICE LINE LEADING TO THE HOUSE. SO KIND OF WHAT ASSISTANCE THEY CAN GET ON THE WATER USE DEPENDS ON, ON WHAT IT WAS. I'M NOT WORRIED ABOUT INDIVIDUAL HOMES WHERE IT'S THEIR IRRIGATION SYSTEM. UH, YOU KNOW. YEAH. TO ME, I WANNA MAKE SURE THAT IF PEOPLE ARE DEPENDING ON THE WATER MM-HMM. AND THEIR LINE GOES DOWN BECAUSE OF THE HEAT AND HOW IT'S ADDRESSING THEIR, THEIR PROPERTY, UH, THAT IF WE STILL HAVE PEOPLE WHO HAVE THAT KIND OF A NEED WHERE THEY'RE, AND I HEAR YOU SAYING IF THEY'RE AT 125% OF, UH, THE POVERTY LEVEL, THEN WE ARE AVAILABLE TO HELP THEM. YES. OKAY. WE'LL FIX THAT FOR FREE AT NO COST. OKAY. UH, I THINK THAT CONCLUDES OUR WATER SUPPLY AND DROUGHT MANAGEMENT REPORT. WE WERE ASKING FOR AN UPDATE ON RATE STRUCTURE THAT, UH, HAS GONE THROUGH THE RATE COMMITTEE AND I THINK HAS BEEN PRESENTED, UH, OR, OR MAYBE PRESENTED FOR APPROVAL THROUGH THE BOARD. AND I THINK EVENTUALLY THE CITY'S GONNA BE HAVING THAT COME BEFORE US. UH, COULD YOU GIVE US AN UPDATE ON THAT TOO? YES. UH, I WILL CAUTION YOU THAT IT'S 43 SLIDES. MARY. YEAH. SO HOW, HOW LONG? 43 SLIDES, UH, SHE DID IT IN FRONT OF OUR BOARD. OKAY. IN ABOUT 45 MINUTES. UH, I'LL TELL YOU WHAT, ABSOLUTELY. HIT THE HIGHLIGHTS IF YOU WANT. YEAH. PROBABLY IN LIKE TWO MINUTES. IF, IF YOU WANT TO HEAR THE WELL YEAH. SOUND BITES. UM, IT LOOKS LIKE MOST OF THE COMMITTEE IS NOT ABLE TO REMAIN. OKAY. UM, I, I'D LIKE TO MAKE SURE THAT, THAT, THAT YOUR PRESENTATION GETS TO EVERY COMMITTEE MEMBER. IF YOU COULD SEND THAT OUT AND LET US REVIEW IT INDIVIDUALLY AND REACH BACK OUT TO, TO YOU, MARY. SURE. OR TO GO AHEAD. ABSOLUTELY. AND TALK TO, UH, YOU KNOW, THE, THE CHAIR AND, AND, UH, MR. PUENTE IF WE HAVE ANY OTHER QUESTIONS. BUT YEAH, A 45 MINUTE, UH, WOULDN'T DO AND A TWO MINUTE DOESN'T REALLY COVER ENOUGH. I THINK SO. RIGHT. OKAY. SO I THINK WE'LL, WE'LL GO AHEAD AND PUT THAT OFF. ALRIGHT. AND WE'LL EXCUSE YOU AT THIS TIME. I WILL SAY, UH, IF, UM, BEN, YOU'D LIKE TO MAKE A LITTLE UPDATE ON THE OTHER PART WE WERE GONNA TAKE A LOOK AT, I THINK IS, IS HOW ARE WE DOING WITH, UM, OUR, UM, DASHBOARD ON THE, UH, SITUATION WE WERE LOOKING AT FOR IMPROVEMENTS TO THE UTILITIES BASED ON, UH, WINDSTORM URI? ANY UPDATES ON THAT? IS THAT UP AND RUNNING? SO, CHAIR, WE ARE WORKING ON AN UPDATE TO THE WEBSITE. WE'LL, WE'LL BE PROVIDING SOME UPDATED INFORMATION AS WE WORK WITH BOTH UTILITIES AND WITH THE CITY E E O C STAFF. SO WE'LL PUT THAT, UH, UPDATE ONLINE SOON. OKAY. IS THERE ANYTHING ELSE THAT WE SHOULD BE, UH, COVERING TODAY THAT YOU CAN THINK OF THAT WE HADN'T? NO, NO SIR. BUT WE WILL MAKE SURE YOU ALL HAVE THE PRESENTATION ON THE RATES ADVISORY COMMITTEE. WE'LL MAKE SURE THAT YOU HAVE THAT. WE ARE ALSO SCHEDULING A B SESSION WITH THE FULL COUNCIL. I BELIEVE IT'S MAYBE LATE SEPTEMBER, EARLY OCTOBER. OKAY. THAT'D BE GOOD. SO WE'LL BE DOING A FULL BRIEFING WITH THE COUNCIL AND B SESSION AS WELL. GOOD. AND WE, WE WILL JUST BRING OUR QUESTIONS UP THEN, THEN. THANK YOU. OKAY. THANK YOU VERY MUCH FOR EVERYBODY BEING HERE TODAY. UH, AND SO, UH, WE'RE GONNA GO AHEAD AND BE ADJOURNED. THANK YOU. * 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.