[00:00:01]
THANK YOU EVERYBODY, AND GOOD MORNING.
UH, WELCOME TO THE MUNICIPAL UTILITY COMMITTEE, ME MEETING OF SEPTEMBER 27TH.
UH, WE HAVE A, A GOOD AGENDA, VERY INFORMATIVE AGENDA TODAY.
UH, LET'S GO AHEAD AND BEGIN BY, UH, HAVING ROLL CALL, PLEASE.
COUNCIL MEMBER ROCHA GARCIA HERE, COUNCIL MEMBER CAB BERDA HERE.
COUNCIL MEMBER SANDOVAL HERE, CHAIR, COURAGE PRESENT CHAIR.
[Approval of Minutes ]
AHEAD AND BEGIN WITH, UH, APPROVAL OF THE MINUTES FROM OUR MEETING OF AUGUST 23RD.I HOPE THE COMMITTEE HAS HAD A CHANCE TO LOOK AT THEM.
IF ANYBODY SEES ANYTHING THAT NEEDS TO BE CHANGED, NOW'S THE TIME.
OTHERWISE, I'LL ENTERTAIN A MOTION TO APPROVE THE MINUTES.
AND MOTION HAS BEEN MOVED AND SECONDED TO APPROVE THE MINUTES OF OUR LAST MEETING ON AUGUST 23RD.
LET ME ASK IF WE HAVE ANY CITIZENS SIGNED UP TO SPEAK TODAY AT THE MEETING.
WE HAVE NO PUBLIC COMMENTS TODAY.
[Briefing and Possible Action on the following items ]
BRIEFING ON SEVERAL ISSUES.UH, ONE IS ON THE 2022 RATE ADVISORY COMMITTEE RECOMMENDATIONS FOR SASS TO ITS BOARD AND TO THE CITY.
UH, A BRIEFING ALSO ON SAN ANTONIO WATER SYSTEMS WATER MANAGEMENT PLAN, AND A BRIEFING ON SAS, UH, FROM SAS ON THE STATUS OF CUSTOMER DELINQUENCIES OR, UH, BILLS THAT HAVE BEEN TURNED OFF.
SO THOSE ARE THE THREE ITEMS, UH, WE'LL BE LOOKING AT.
AND IF, UH, HOPEFULLY WE HAVE ALL THE INFORMATION WE NEED FROM SAAS.
I'VE HAD THE OPPORTUNITY TO HEAR SOME OF THESE PRESENTATIONS ALREADY, SO I LOOK FORWARD TO, UH, HEARING 'EM AGAIN AND FOR THE OTHER COMMITTEE MEMBERS TO HEAR THEM.
WE'LL START OFF WITH ITEM NUMBER TWO, WHICH IS THE BRIEFING BY SAWS ON THE 22 20 22 RATE ADVISORY COMMITTEE RECOMMENDATIONS RELATED TO WATER, WASTEWATER, AND RECYCLED WATER RATES.
AND WE'LL BE HEARING FROM MARY BAILEY.
UM, I THINK WE'VE MET WITH MOST OF YOU TO BRIEFLY KINDA COVER THE, THE RATE ADVISORY COMMITTEE RECOMMENDATIONS THIS MORNING.
I'M GONNA GO THROUGH WITH THROUGH THEM IN A LITTLE BIT MORE DETAIL AND CERTAINLY LOOK FORWARD TO ANY QUESTIONS THAT YOU MAY HAVE.
SO, UM, WE TYPICALLY GO THROUGH A RATE STUDY ABOUT EVERY FIVE YEARS.
UM, AND WE DO THAT, UM, WITH THE HELP OF A NATIONAL RATE CONSULTANT AS WELL AS WITH A CITIZENS COMMITTEE THAT WE IS, WE CALL THE RATE ADVISORY COMMITTEE.
UM, THIS STUDY BEGAN BY IDENTIFYING THE REVENUE THAT WE NEED TO GENERATE FROM OUR RATES AND, AND THE, THE STUDY FOCUSED ON OUR 2022 BUDGETED REVENUES.
UM, WHAT'S IMPORTANT ABOUT THAT IS OUR CURRENT RATES GENERATE THE REVENUE THAT WE NEED UNDER THE 2022 BUDGET.
SO THE DIRECTION THAT WAS GIVEN TO THE CONSULTANT AND TO THE RATE ADVISORY COMMITTEE WAS ANY CHANGES THAT WERE MADE TO RATES SHOULD GENERATE THE SAME AMOUNT OF REVENUE.
SO WE REFER TO THAT AS BEING REVENUE NEUTRAL, DIFFERENT, UH, CUSTOMERS MAY PAY DIFFERENT AMOUNTS, BUT AT THE END OF THE DAY, SAS GETS THE SAME AMOUNT OF REVENUE THAT WE WOULD'VE GOTTEN FROM OUR CURRENT, UH, RATES AND, AND THAT IS NECESSARY TO SUPPORT OUR BUDGET.
THE, UH, THE FIRST THING THAT HAPPENS IS THE CONSULTANT LOOKS THROUGH OUR, UM, OUR, OUR COSTS AND LOOKS THROUGH HOW OUR CUSTOMER CLASSES USE WATER AND ALLOCATES COSTS TO EACH OF THOSE CUSTOMER CLASSES BASED ON HOW THEY USE WATER AND SEWER SERVICES.
IT'S CALLED A COST OF SERVICE STUDY, AND WE LIKE TO DO THAT, AND IT'S A, AN IMPORTANT PART OF A RATE STUDY BECAUSE IT REALLY MAKES SURE THAT THE RATES THAT WE CHARGE BY CLASS ARE FAIR.
THEY'RE BASED ON AN OBJECTIVE APPROACH TO ALLOCATING COSTS TO EACH CLASS.
ONCE THAT'S DONE, THE, THE RATE DESIGN STAGE OF THE, OF THE STUDY HAPPENS, AND AS I MENTIONED, WE USE THE RATE ADVISORY COMMITTEE TO HELP US WITH THAT.
THEY LOOK AT, UM, WHAT, HOW WE CHARGE OUR CUSTOMERS.
SO WHAT ARE WE, HOW MUCH ARE WE GONNA GET OUT OF THE FIXED CHARGE, OR HOW MUCH ARE WE GONNA GET FROM THE VARIABLE CHARGE? HOW MANY TIERS SHOULD THERE BE, ET CETERA.
AT THE END OF THE, AT THE END OF THE DAY, THOSE, UH, WHATEVER RECOMMENDATIONS THEY HAVE SHOULD GENERATE, UH, WHAT THE COST OF SERVICE STUDY SAID BY CLASS.
AND THEN ULTIMATELY, AS I SAID, GENERATE THE SUFFICIENT REVENUE TO SUPPORT OUR, OUR, UH, BUDGET REQUIREMENTS.
SO TODAY I'M GONNA FOCUS ON THE RATE ADVISORY COMMITTEE'S WORK, BUT BEFORE I DO, I WANNA JUST BRIEFLY SUMMARIZE WHAT THE COST OF SERVICE STUDY SAID.
AND, UM, YOU KNOW, WHEN THEY LOOKED AT ALL OF THE USAGE, UH, BY EACH OF THE CLASSES, UH, THE, THE CONSULTANT SAID, YOU KNOW WHAT, WE SHOULD BE
[00:05:01]
CHARGING RESIDENTIAL CLASS LESS FOR BOTH WATER AND SEWER SERVICES.THE CONVERSE OF THAT IS WE SHOULD BE CHARGING OUR COMMERCIAL CUSTOMERS OR WHAT WE, WE CALL OUR GENERAL CLASS, WHICH IS COMMERCIAL, MULTIFAMILY, AND INDUSTRIAL MORE BECAUSE THEY'RE, THEY'RE, THEY'RE, UM, THEY'RE INCURRING MORE COSTS ON THE UTILITY THAN WHAT WE'RE RECOVERING FROM THE RATES THAT THEY PAY.
BUT ON THE RESIDENTIAL SIDE, WE SHOULD BE LOWERING THEIR, THEIR RATES, UM, TO MEET COST OF SERVICE.
IF WE HAD STOPPED, WE COULD HAVE JUST STOPPED HERE AND WALKED AWAY AND SAID, YOU KNOW WHAT? WE'RE GONNA KEEP OUR STRUCTURE AND WE'RE GONNA LOWER RESIDENTIAL ONE POINT A 5%, UM, ON WATER, 6.7% ON SEWER, AND TURN AROUND AND INCREASE THE GENERAL CLASS RATES, 1.9 ON WATER AND 12% ON SEWER.
WE COULD STOP THERE, BUT WE LIKE TO LOOK THROUGH THAT, AGAIN, THAT STRUCTURE AND SAY, SHOULD THERE BE CHANGES? BECAUSE WE WANNA MAKE SURE THAT THE WAY WE CHARGE MATCHES THE OBJECTIVES AND THE VALUES OF THE UTILITY AS WELL AS OUR, UH, OUR CUSTOMERS.
SO, UM, WE, UH, THE BOARD APPOINTED, UH, RATE ADVISORY COMMITTEE, UH, EARLY THIS YEAR.
UM, AS YOU KNOW, WE ASKED FOR NOMINEES FROM EACH OF THE COUNCIL DISTRICTS, AND YOU CAN SEE THE, UH, NOMINATIONS, THE, THE MEMBERS THERE THAT REPRESENTED EACH COUNCIL DISTRICT.
WE ALSO LIKE TO FILL OUT THE, UH, RACK WITH MAKING SURE THAT ALL OF OUR CUSTOMER CLASSES ARE REPRESENTED.
AND SO WE HAVE A NUMBER OF, OF, UH, UH, MEMBERS THAT REPRESENTED SOME OF THE, UH, CHAMBERS, UH, SO REPRESENTING BUSINESS INTEREST AS WELL AS, UM, UH, WE HAVE SOMEBODY THAT REPRESENTED A WHOLESALE CUSTOMER B'S HEIGHTS, AND, UM, AND THEN WE HAD SOMEBODY WE WANNA MAKE SURE THAT REPRESENTED OUR OUTSIDE CITY LIMITS CUSTOMERS.
SINCE IT IS A GROWING PART OF OUR CUSTOMER BASE.
UM, THEY REALLY, UH, SPENT A LOT OF TIME, UH, FOCUSING ON THIS, AND I REALLY APPLAUD THEM FOR THEIR EFFORTS AND THEIR COMMITMENT TO THE PROCESS.
A NUMBER OF THESE FOLKS WERE ACTUALLY PART OF THE 2019, UH, RATE STUDY THAT WE STARTED IN, UH, THE FALL OF 2019.
THAT HAD TO BE CUT SHORT IN MARCH OF 2020 DUE TO THE PANDEMIC.
SO SOME OF THESE FOLKS, UH, UH, CON CONTRIBUTED QUITE A BIT BETWEEN THE TWO, THE TWO ME, UH, THE TWO YEARS OF THE STUDY.
SO THE PROCESS FOR THE RATE ADVISORY COMMITTEE, WE HAD SEVEN MEETINGS BETWEEN FEBRUARY OF THIS YEAR AND JUNE.
UM, AND, AND RIGHT FROM THE BEGINNING, THE CONSULTANT SAID, OKAY, HERE'S THE, THE RESULTS OF THE COST OF SERVICE STUDY, WHICH I JUST SHOWED, SHOWED TO YOU.
AND, UH, THE BOARD HAD APPROVED THAT COST OF SERVICE STUDY AND SAID, THAT NOW BECOMES YOUR TARGET FOR EACH OF YOUR CUSTOMER CLASSES.
THEY THEN REVIEWED ALL THE EXISTING RATE STRUCTURES FOR WATER, WASTEWATER AND RECYCLED WATER FOR ALL OF OUR DIFFERENT CLASSES.
UM, AND I'LL GO THROUGH, UM, WELL, I'LL GO AHEAD AND TALK ABOUT WHICH, WHAT THEY ARE.
WE HAVE RESIDENTIAL, UH, WHICH IS SINGLE FAMILY HOMES AND DUPLEXES.
UM, IT WITHIN RESIDENTIAL, UH, WE HAVE AN AFFORDABILITY GROUP OF CUSTOMERS.
OUR AFFORDABILITY DISCOUNT PROGRAM, THOSE ARE FOLKS THAT ARE AT 125% OF POVERTY, UM, OR BELOW IN OUR GENERAL CLASS I MENTIONED, THAT'S OUR COMMERCIAL, INDUSTRIAL AND MULTIFAMILY, UM, CUSTOMERS.
THIS IS THE WATER THAT THEY USE IN THEIR BUSINESS.
OKAY? SO THEY HAVE A METER, UH, THAT TO PROVIDE WATER FOR THEIR BUSINESS.
THEY MAY HAVE A SEPARATE METER IF THEY HAVE AN IRRIGATION TO PROVIDE, UH, WATER FOR THEIR LANDSCAPING.
IF THEY DO HAVE THAT, THAT FALLS UNDER THE IRRIGATION CLASS.
UM, SO THE IRRIGATION CLASS IS, IS VA VASTLY JUST GENERAL CLASS CUSTOMERS, BUT IT IS FOR THEIR OUTDOOR LANDSCAPING.
AND THEN RECYCLE WATER, WHICH ARE FOLKS THAT ARE CONNECTED TO OUR RECYCLED WATER SYSTEM.
AND, UM, UH, WHICH LOOPS THE CITY, AGAIN, THAT IS BUSINESS CUSTOMERS BECAUSE RESIDENTIAL CUSTOMERS DO NOT HAVE ACCESS TO RECYCLED WATER.
THEY LOOKED AT A NUMBER OF DIFFERENT RATE DESIGN OPTIONS THAT THE, THAT THE CONSULTANT PROVIDED TO THEM, AND THEY EVALUATED THOSE OPTIONS, UM, USING THE OBJECTIVES THAT THEY HAD IDENTIFIED, UM, AS WELL AS THE IMPACT THAT WOULD, IT, IT WOULD BE ON OUR CUSTOMERS, RIGHT? SO THEY, UH, WHEN THEY WENT THROUGH AND THEY IDENTIFIED THEIR OBJECTIVES, THEIR NUMBER ONE OBJECTIVE WAS AFFORDABILITY.
AND WHEN THEY, UH, TALK ABOUT AFFORDABILITY, THEY WERE VERY CONCERNED ABOUT THE WATER BILL FOR, UM, ESSENTIAL USE OR INDOOR USE, RIGHT, FOR OUR RESIDENTIAL CUSTOMERS, NOT OUTDOOR USE, BECAUSE THAT WOULD BE CONSIDERED TO BE MORE DISCRETIONARY.
SO LANDSCAPE USE POOLS, THINGS LIKE THAT, UH, THAT'S DISCRETIONARY USE, BUT AFFORDABLE.
UH, THEY WANNA MAKE SURE THAT THE ESSENTIAL USE IN THE HOME TO, UH, FEED AND TAKE CARE OF YOUR FAMILY WAS AFFORDABLE FOR ALL OF OUR RESIDENTIAL CUSTOMERS.
NORMALLY, WE TALK ABOUT IT IN TERMS OF AFFORDABILITY FOR LOW INCOME, BUT THE RACK WAS VERY FOCUSED ON, ON BOTH OF THOSE, RIGHT? UH, ALL CUSTOMERS AS WELL AS CERTAINLY ON, ON OUR LOW INCOME FOLKS.
[00:10:01]
BUT THEY ALSO WANTED TO MAKE SURE ON THAT DISCRETIONARY WATER, THAT OUTDOOR WATER THAT WE WERE SENDING PRICE SIGNALS SO THAT OUR CUSTOMERS UNDERSTOOD THAT, UM, WATER IS, UH, A PRECIOUS, UH, RESOURCE AND WE NEED TO MAKE SURE THAT, THAT WE MANAGE IT AND, AND, UM, AND WHEN WE'RE USING IT FOR DISCRETIONARY REASONS, MAKING SURE THAT FOLKS ARE MAKING THE RIGHT DECISIONS WITH REGARD TO COST, UH, THE COST ASSOCIATED WITH THAT.SO THE, THE HIGHLIGHT FOR THE RECOMMENDATIONS THAT, UH, THE RACK MADE RELATED TO OUR, OUR RESIDENTIAL CUSTOMERS, UM, A HUNDRED PERCENT OF OUR RESIDENTIAL CUSTOMERS WILL SEE A REDUCTION IN THEIR, THE SEWER PORTION OF THEIR BILL.
AND I MENTIONED ON THE COST OF SERVICE STUDY, UM, THE CONSULTANTS SAID WE WERE CHARGING TOO MUCH ON SEWER.
SO EVERYBODY, EVERY RESIDENTIAL CUSTOMER WILL SEE THEIR SEWER BILL GOES, GO DOWN.
UM, 98% OF CUSTOMERS THAT ARE IN OUR AFFORDABILITY PROGRAM AS A RESULT OF THE RATE, UH, RECOMMENDATIONS FROM THE REC WILL SEE A REDUCTION IN THEIR BILL.
THE OTHER 2% ARE FOLKS THAT ARE NOT REALLY PAYING ANYTHING.
NOW THEIR DISCOUNT IS WIPING OUT THEIR CHARGES, AND THAT WILL BE THE SAME GOING FORWARD.
SO, UM, 83% OF ALL RESIDENTIAL BILLS WILL GO DOWN, WATER BILLS WILL GO DOWN, AND THAT'S FOR CUSTOMERS USING 9,000 GALLONS OR LESS.
UM, OUR AVERAGE CUSTOMER USES MUCH LESS THAN 9,000 GALLONS RESIDENTIAL CUSTOMERS.
SO, UM, BUT ANYBODY USING 9,000 GALLONS, UM, A MONTH OR LESS, WE'LL SEE A REDUCTION IN THE WATER SIDE OF THEIR BILL.
AND THAT REDUCTION IS LAR LARGELY AS A RESULT OF THE RACKS RECOMMENDATION TO LOWER THE FIXED CHARGES WHEN WE LOOKED AT OUR FIXED CHARGES.
SO THAT'S WHAT YOU'D PAY BEFORE YOU EVEN USE A DROP OF WATER.
WHEN WE LOOKED AT THOSE, AND WE COMPARED THEM TO, UM, OTHER MAJOR CI CITIES IN TEXAS, SAN ANTONIO DID HAVE, UM, SOME OF THE HIGHEST FIXED.
AND SO THE, THE RACK, UH, FELT LIKE THOSE CHARGES SHOULD COME DOWN TO MAKE THAT BILL MORE AFFORDABLE, PARTICULARLY FOR FOLKS THAT WEREN'T USING A LOT OF WATER.
SO THEY'RE RECOMMENDING A 20% REDUCTION IN THE FIXED CHARGE, AND THAT'S ABOUT A $6 SAVINGS FOR MOST RESIDENTIAL CUSTOMERS.
THEY ARE SENDING A HIGH, UH, A PRICE SIGNAL FOR FOLKS USING MORE THAN 9,000 GALLONS A MONTH.
AND, AND IN PARTICULAR, UM, MORE THAN 12,000 GALLONS A MONTH, THOSE FOLKS WILL SEE ABOUT A 7% INCREASE IN THE WATER PORTION OF THEIR BILL.
THE REDUCTION IN THE SEWER CHARGES MAY OFFSET THAT TO SOME EXTENT, BUT, UM, BUT ONCE THEY'RE STARTING TO USE QUITE A BIT OF WATER, THEY WILL SEE A HIGHER BILL AS A RESULT OF THESE RECOMMENDATIONS.
AND, UH, I'LL GO THROUGH THE AFFORDABILITY PROGRAM, UM, IN A FEW SLIDES SO YOU CAN GET A LITTLE BIT MORE INFORMATION ON HOW THAT, THE RECOMMENDATIONS THERE.
BUT LET'S GO BACK TO, UH, THE RESIDENTIAL.
UM, AND RIGHT NOW OUR CURRENT STRUCTURE IS A, A, A VOLUME.
IT HAS A EIGHT TIER VOLUMETRIC, UH, CHARGES THAT YOU, THAT EACH CUSTOMER SORT OF WALKS THROUGH.
SO THE, THEY PAY A FIXED CHARGE.
AND YOU CAN SEE THERE THAT THAT FIXED CHARGE IS, HAS GOT TWO TIERS.
UH, IF YOU STAY LESS THAN 3000 GALLONS, UM, YOU'RE PAYING THAT SMALLER FIXED CHARGE.
AND THEN THAT WATER, UH, FROM ZERO TO 3000 IS CHARGED AT THAT BOTTOM RATE OF $2, UM, AND 32 CENTS PER THOUSAND GALLONS.
IT, AS YOU USE MORE WATER, YOU START TO WALK THROUGH SOME OF THOSE TIERS.
SO THAT FIRST 3000 GETS CHARGED AT THAT LOWEST BLOCK.
THE NEXT 1500 THEN GETS CHARGED AT THAT NEXT BLOCKS RATE, ET CETERA.
SO FOLKS THAT ARE USING, UM, MORE THAN 20,000 GALLONS A MONTH, ANYTHING OVER 20,000 IS CHARGED AT THAT VERY HIGHEST RATE OF $15 AND 5 CENTS.
THE, THE FIXED CHARGE DOES GO UP.
IF YOU GO OVER $3, IT'LL GO FROM THAT 10 25 TO 1282.
SO THAT'S OUR EXISTING RATE STRUCTURE.
SO THE RACK RECOMMENDATION IS A COUPLE OF THINGS.
ONE, I MENTIONED LOWERING THAT FIXED CHARGE.
IT'S STILL A TWO TIERED FIXED CHARGE.
HOWEVER, WE'RE GIVING, UH, UNDER THOSE RECOMMENDATIONS, MORE WATER USE IN THAT FIRST BLOCK.
SO THAT $9 FIXED CHARGE NOW IS WHAT YOU'D PAY IF YOU USE 4,000 GALLONS OR LESS.
AND THEN THE RATE, YOU SEE, THE RATE THERE IS A LITTLE BIT HIGHER FOR THE VOLUME CHARGES FOR THAT FIRST 4,000 THAN WHAT WE'RE PAYING RIGHT NOW UNDER CURRENT RATES FOR THE FIRST THREE.
BUT THAT'S BECAUSE THAT LOWER, THAT LOWER FIXED CHARGE, UM, AND WINDS UP, WE HAVE WIND UP HAVING TO CHARGE A BIT MORE.
PLUS IT'S PULLING SOME OF THE, UM, SOME OF THE USAGE OUTTA THAT SECOND BLOCK.
UNDER OUR CURRENT STRUCTURE, WE, THEY ARE RECOMMENDING FIVE RATE TIERS INSTEAD OF THE CURRENT EIGHT.
I THINK IT'LL BE A LITTLE BIT MORE UNDERSTANDABLE FOR OUR CUSTOMERS.
IT DOES PROVIDE A BIT MORE WATER IN EACH OF THOSE TIERS.
HOWEVER, THAT HIGHEST RATE IS STILL FOR EVERYTHING OVER 20,000 GALLONS.
AND YOU CAN SEE THAT IT DOES GO UP, UM, ALMOST, UM, A DOLLAR FROM WHAT PEOPLE ARE PAYING RIGHT NOW.
[00:15:01]
UM, MENTIONED, UM, ON THE, UH, SUMMARY KIND OF, UH, SLIDE OF THE RECOMMENDATIONS, 83% OF OUR CUSTOMERS USE LESS THAN 9,000 GALLONS, AND THEY'RE GONNA SEE THEIR BILL GO DOWN.UM, AND THEN ONCE YOU GET UP AROUND THE 12, 13,000 GALLON, UH, LEVEL OF WATER USE, YOU'RE PROBABLY GONNA SEE SOMEWHERE AROUND A SEVEN OR 8% INCREASE IN YOUR WATER BILL ON THE SEWER SIDE.
UM, THE, NOT A LOT OF DISCUSSION WITH THE RACK ON THE SEWER SIDE, UM, THIS IS, UH, UH, USUALLY A FAIRLY STRAIGHTFORWARD PROCESS.
UH, YOU GUYS MAY RECALL THAT WE MEASURE YOUR WATER USE BETWEEN NOVEMBER AND, AND MARCH.
AND, UH, THAT IS WHAT WE SAY WILL APPROXIMATE YOUR SEWER CONTRIBUTION DURING THE NEXT YEAR.
WE DON'T HAVE A METER ON YOUR, ON YOUR SEWER, UH, LINE.
UM, SO THAT'S HOW WE REGISTER IT RIGHT NOW.
THE FIRST 1500 GALLONS UNDER OUR EXISTING RATES IS, IS INCLUDED IN YOUR FIXED CHARGE.
UM, AND THEN YOU GET ANOTHER, UH, 1500 GALLONS OR SO, UM, FOR, UH, A, A REDUCED RATE, AND THEN YOU PAY THE HIGHEST RATE ON EVERYTHING OVER THAT.
UNDER THIS RECOMMENDATION, UM, WE'RE GONNA REMOVE, UH, ANY KIND OF USAGE FROM THE FIXED CHARGE, BUT THE FIXED CHARGE, YOU CAN SEE THERE IS GOING DOWN ALMOST, UH, YOU KNOW, ALMOST $5, UH, DOWN TO $10.
UM, THE FIRST 4,000 GALLONS WILL BE AT THE LOWEST RATE, AND THEN ANYTHING OVER 4,000 WILL BE AT THAT, UH, HIGHER RATE.
BUT OVERALL, AS I MENTIONED, UM, A HUNDRED PERCENT OF OUR RESIDENTIAL CUSTOMERS WILL SEE A REDUCTION IN THEIR, THE SEWER PORTION OF THEIR BILL.
SO THE RACK AS THEY EVALUATED AFFORDABILITY, 'CAUSE I MENTIONED THAT THAT WAS ONE OF THEIR, THEIR, IT WAS THEIR TOP PRIORITY, THEY WANTED TO LOOK AT THE BILL IN, IN TERMS OF OUR CUSTOMER'S INCOME.
AND TYPICALLY, UM, YOU KNOW, WE TALK ABOUT, UM, AVERAGE MEDIAN INCOME.
WELL, AVERAGE MEDIAN INCOME FOR SAN ANTONIO IS QUITE A BIT HIGHER THAN PROBABLY A LOT OF OUR CUSTOMERS MAKE.
AND, UM, IF THEY DO MAKE, AS I MENTIONED, A HUNDRED, UH, LESS THAN 125% OF POVERTY, THEY'RE ELIGIBLE FOR OUR AFFORDABILITY PROGRAM.
BUT WHAT IF THEY FALL BETWEEN, RIGHT? SO WHAT IF THEY'RE MORE THAN 125% OF POVERTY, BUT THEY'RE NOT MAKING A MEDIAN HOUSEHOLD INCOME? UM, YOU KNOW, WELL, HOW DOES THIS AVERAGE BILL OR THIS ESSENTIAL USE BILL, WHICH IS REALLY, AGAIN, WATER USED IN THE HOME.
AND WE LOOKED AT THAT SAME PERIOD OF TIME THAT WE LOOK FOR SEWER, EXCUSE ME, NOVEMBER TO, TO MARCH TO SAY THAT SHOULD PRIMARILY BE INSIDE WATER.
YOU SHOULDN'T BE A LOT OF OUTDOOR LANDSCAPING DURING THAT PERIOD.
SO WHAT'S THE BILL LOOK LIKE THERE? AND, UH, WHAT WE'VE, UH, WE'RE ABLE TO SHOW, THANK YOU.
WHAT WE WERE ABLE TO SHOW IS THAT REGARDLESS OF YOUR, THE INCOME LEVEL, EVEN FOLKS THAT WEREN'T, THAT AREN'T ELIGIBLE FOR OUR PROGRAM, OUR AFFORDABILITY PROGRAM, THEY'RE NOT GONNA BE PAYING MORE THAN ABOUT 2% OF THEIR INCOME, UM, FOR, UH, THE INDOOR WATER USE.
SO THAT'S HOW THE RACK DETERMINED THAT IT WAS AFFORDABLE.
COULD YOU DEFINE ICL AND OCL? SURE.
SO I C L IS INSIDE CITY LIMITS, AND O C L IS OUTSIDE CITY LIMITS.
SO WE DO HAVE A BIT OF A PREMIUM FOR OUR OUTSIDE CITY LIMIT CUSTOMERS.
UM, BUT, UH, AS YOU COULD SEE THERE FOR OUR EXISTING I C L UNDER CURRENT RATES, THEY'RE PAYING, UH, JUST, UH, ALMOST 50, ALMOST $60, UM, UNDER THE RECOMMENDATION IT'S GONNA GO DOWN TO, UH, A LITTLE BIT LESS THAN $55.
AND THEN ON, UH, O C L, THEY'RE PAYING $70, UH, RIGHT NOW, A LITTLE OVER 70, AND THAT, THAT ALSO WILL BE GOING DOWN TO, UH, $64 AND 52 CENTS THERE.
BUT THE, THE TAKEAWAY HERE IS REALLY IMPORTANT THAT, AGAIN, FOR ESSENTIAL USE, THE BILL IS CONSIDERED AFFORDABLE, EVEN FOR THOSE THAT MAYBE MAKE TOO MUCH TO BE IN OUR AFFORDABILITY PROGRAM, BUT STILL ARE VERY CHALLENGED FROM, FROM A, UM, ECONOMICS PERSPECTIVE, WE HAD THE UNITED WAYCOM TALK TO, UM, THE IRAQ.
THEY WERE VERY MUCH INFLUENCED BY THAT PRESENTATION.
THEY TALK A LOT ABOUT THAT ALICE, WHICH IS ASSET LIMITED, INCOME CONSTRAINED AND EMPLOYED.
THESE ARE FOLKS THAT MAY HAVE, MAY BE EMPLOYED AND, AND, UM, BUT THEY STILL STRUGGLE DAY TO DAY.
AND, AND IF YOU LOOK AT THAT LEVEL OF INCOME, IT'S ABOVE MEDIAN HOUSEHOLD INCOME, AND YET FOLKS MAKING MORE THAN THE MEDIAN UP TO THAT ALICE LEVEL STILL STRUGGLE DAY TO DAY AND DON'T HAVE A LOT OF RESERVES OR SAVINGS TO DRAW ON.
UM, SO AGAIN, THIS WAS A BIG, A BIG KEY POINT FOR THE RACK TO ENSURE THAT AFFORDABILITY.
SO, BUT, BUT THEN FOR THE FOLKS THAT ARE ELIGIBLE FOR OUR AFFORDABILITY PROGRAM, THEY HAVE SOME ADDITIONAL RECOMMENDATIONS THERE TO MAKE THOSE BILLS EVEN MORE AFFORDABLE.
UM, I MENTIONED THAT WE CURRENTLY PROVIDE A BILL DISCOUNT, UH, TO THOSE CUSTOMERS.
THAT DISCOUNT VARIES BASED ON THEIR INCOME
[00:20:01]
LEVEL.UH, THE, UH, THE, THE SMALLEST DISCOUNT, SOMEBODY RIGHT AT ABOUT 125% OF POVERTY WOULD GET JUST UNDER $10 OFF THEIR BILL, WHEREAS SOMEBODY AT THE LOWEST LEVELS OF INCOME AT 50% OF POVERTY WOULD GET A LITTLE MORE THAN $28, UM, DISCOUNT OFF OF THEIR BILL.
AND, AND WHILE THAT IS HELP IT, IT PROVIDES HELP.
THE REALITY IS, IS THAT OUR, OUR LOW INCOME CUSTOMERS ARE NOT NECESSARILY LOW USE CUSTOMERS.
SO THEY MAY HAVE MORE PEOPLE IN THEIR HOUSEHOLD, THEY MAY HAVE LEAKIER INFRASTRUCTURE, AND SO THEIR BILLS, UM, FOR, UH, HOUSEHOLD USE POSSIBLY COULD BECOME UNAFFORDABLE EVEN WITH THE DISCOUNTS THATS IS PROVIDING.
SO THE RACK LOOKED AT THAT AND RECOMMENDED THAT WE REPLACE THE DISCOUNT PROGRAM WITH A SEPARATE RATE STRUCTURE.
SO JUST LIKE WE HAVE THE AFFORDABILITY, I MEAN, WE HAVE THE RESIDENTIAL STRUCTURE THAT HAS A FIXED CHARGE AND, AND, UM, BLOCK RATES, VARIABLE BLOCK RATES.
THEY RECOMMENDED A SIMILAR STRUCTURE FOR AFFORDABILITY CUSTOMERS, BUT WITH REDUCED RATES, UM, AND, UH, BE BECAUSE AGAIN, THEY'RE RECOGNIZING THAT, UM, UH, WE'VE GOT A, A LOT OF FOLKS IN OUR CITY THAT, THAT, UH, LIVE IN POVERTY AND, UM, THAT, UH, AND THEY WANTED TO MAKE SURE THAT THEIR BILLS COULD GO DOWN EVEN MORE, THAT THEY WOULD AT LEAST PAY, UM, WHAT THEY'RE PAYING NOW OR HOPEFULLY SIGNIFICANTLY LESS ACROSS ALL LEVELS OF USAGE.
UM, AND, UM, AND THEN THEY'RE ALSO RECOMMENDING THAT THE COST OF THAT PROGRAM IS PAID FOR, UH, BY THE OTHER CUSTOMERS.
AND I'LL TALK A LITTLE BIT MORE ABOUT THAT.
SO WHAT I'M SHOWING HERE IS THE REC RECOMMENDATION FOR FOLKS THAT WOULDN'T BE ELIGIBLE FOR OUR AFFORDABILITY PROGRAM.
SO I JUST SHOWED YOU THAT ON A PREVIOUS SLIDE, CHOSE THEIR FIXED CHARGES AND THEIR, THEIR, THEIR FIVE, UH, TIERED BLOCK RATES.
SO LET'S COMPARE NOW HOW THAT LOOKS FOR THE FOLKS IN THE AFFORDABILITY PROGRAM.
SO THIS IS FOR WATER FIRST 2000 GALLONS.
THERE WOULD BE NO CHARGE, UM, UNDER THIS RECOMMENDATION.
THAT'S NOT A LOT OF WATER, BUT IT'S, IT'S ENOUGH FOR SOMEBODY THAT, LET'S JUST SAY A SINGLE PERSON LIVING ON THEIR OWN 2000 GALLONS IS, IS SUFFICIENT.
THERE WOULD BE NO FIXED CHARGE AND THERE WOULD BE NO VOLUME CHARGES FOR THAT FIRST 2000 GALLONS.
ONCE THEY GET ABOVE 2000, THE, THE, UH, FIXED CHARGE WOULD BE $3 FOR WATER.
AND YOU CAN SEE THERE THAT THAT'S A THIRD OF WHAT SOMEBODY THAT'S NOT IN THE PROGRAM WOULD BE PAYING.
SOMEBODY NOT IN THE PROGRAM WOULD BE PAYING NINE.
THIS CUSTOMER IN THE AFFORDABILITY PROGRAM WOULD BE PAYING THREE.
THEY STILL HAVE FIVE TIERS, UH, LITTLE BIT DIFFERENT TIERS THAN THE, UH, THE FOLKS NOT IN THE PROGRAM.
IT DOES PROVIDE A BIT MORE WATER AND SOME OF THOSE TIERS, AND THE RATES ARE SIGNIFICANTLY REDUCED ANYWHERE FROM 40 TO 50% BELOW WHAT THEY'D BE PAYING IF THEY WERE NOT IN THE PROGRAM.
SO THERE'S GONNA BE A, A, A BIG ADVANTAGE FOR FOLKS THAT QUALIFY TO BE ENROLLED IN THIS PROGRAM.
UM, THEIR, UH, AND I'LL SHOW YOU IN A MINUTE ON WHAT THEIR AVERAGE BILL WILL DO.
UM, ON THE SEWER SIDE, SAME THING.
UH, FIRST 2000 OF, UH, SEWER USAGE IS NO CHARGE.
UM, THERE IS NO FIXED CHARGE ON THE SEWER SIDE OF THE BILL.
AND EVERY, UH, THE 2000 GALLONS WOULD BE CHARGED AT THAT $2 AND 70 CENTS, WHICH IS ALL, WHICH HAPPENS TO BE EQUAL TO THAT FIRST TIER ON THE FOLKS THAT ARE NOT IN THE AFFORDABILITY PROGRAM.
UM, BUT THEN YOU CAN SEE THOSE FOLKS, IF THEY DO GET ABOVE 4,000, PAY QUITE A BIT MORE THAN THAT FOR THE REST OF THAT SEWER USE.
SO THIS, UH, CHART, UH, THE, THE MULTIPLE COLORED LINES IS WHAT THEY ARE PAYING TODAY.
FOLKS IN THE PROGRAM ARE PAYING TODAY WITH THE DISCOUNT THAT'S BEEN PROVIDED TO THEM, PROVIDED TO THEM.
YOU CAN SEE FOLKS AT THE VERY LOW END OF USAGE ARE NOT PAYING A WHOLE LOT, BUT ONCE THEY GET ABOVE FIVE, UM, SIX, 7,000 GALLONS, THAT BILL CAN GET PRETTY EXPENSIVE FOR FOLKS IN THE PROGRAM.
THE GRAY LINE, WHICH IS THE BOTTOM LINE, IS WHAT THE PROPOSED, UH, RACK RECOMMENDATIONS WOULD DO FOR THEIR BILL.
AND YOU CAN SEE OBVIOUSLY ON THE LOW END, THEY'RE NOT PAYING VERY MUCH.
THEY'RE NOT GONNA PAY VERY MUCH UNDER THIS PROGRAM OR VERY MUCH, OR LITTLE AT ALL.
BUT AS, AS THEY START TO USE MORE WATER WHILE THEY, THEIR BILL WILL GO UP, IT WILL NOT BE ANYWHERE CLOSE TO WHAT THEY'RE PAYING TODAY.
AGAIN, THEY'RE GONNA SEE ANYWHERE FROM A THIRD, A 30% TO 60% REDUCTION IN THEIR BILL AS THEIR USAGE GOES UP.
IT'S NOT TO SAY THAT WE DON'T WANNA MAKE SURE THAT THEY'RE, THEY DON'T HAVE LEAKS, AND WE'RE CERTAINLY GONNA BE MONITORING THAT FOR CUSTOMERS IN THE PROGRAM THAT DO KIND OF HAVE HIGHER THAN NORMAL USAGE.
WE'LL BE DOING A LOT OF OUTREACH.
AND ONCE WE HAVE OUR, OUR, UH, ELECTRONIC METERS COMPLETELY ROLLED OUT, WE'LL DEFINITELY BE ABLE TO TELL WHEN CUSTOMERS MAYBE DO HAVE A LEAK BY SEEING THAT THERE'S CONTINUOUS USAGE, UM, EVERY SINGLE HOUR, AND THEN WE CAN REACH OUT TO THEM.
WE'VE GOT OUR PLUMBERS TO PEOPLE PROGRAM, AND WE CAN USE THAT TO HELP, HELP THEM FIX THEIR, THEIR, UH, THEIR LEAKS.
[00:25:01]
THIS IS GONNA BE A MUCH MORE COSTLY PROGRAM.UH, CURRENTLY THE AFFORDABILITY DISCOUNT PROGRAM COSTS ABOUT $8.2 MILLION, AND IT IS BUILT INTO OUR RATES THAT WE CHARGE ALL OF OUR CUSTOMERS.
UH, THIS NEW PROGRAM, BECAUSE IT DOES PRE, UH, UH, OFFER SIGNIFICANTLY REDUCED BILLS IS GONNA BE MORE COSTLY.
SO IT'S GONNA JUMP TO $17.8 MILLION.
UM, WHAT WE ARE, UH, PROPOSING IS THAT THIS BE CHARGED AS A PASS THROUGH CHARGE FOR ALL THE CUSTOMERS THAT ARE NOT IN THE PROGRAM.
THEY WOULD SEE IT ON THEIR BILL AS A SEPARATE LINE ITEM.
IT WOULD BE 32 CENTS PER THOUSAND GALLONS TO SUPPORT THIS PROGRAM.
AND TO GIVE YOU, UH, AN EXAMPLE, SOMEBODY THAT'S AN AVERAGE CUSTOMER, THEY WOULD BE PAYING LESS THAN $2 A MONTH TO SUPPORT THIS PROGRAM.
SO LESS THAN $2 IN ORDER TO PROVIDE A REALLY BIG LIFELINE TO THE, TO OUR CUSTOMERS THAT REALLY DO STRUGGLE, UM, FROM AN INCOME PERSPECTIVE, UH, DAY IN AND DAY OUT, UM, THE IMPACTS TO THEM, UM, ARE SHOWN HERE.
THIS IS A VERY BUSY, BUSY TABLE, BUT THE BOTTOM LINE IS, JUST LIKE I SAID, ON THE FOLKS THAT ARE NOT IN THE PROGRAM, WOULDN'T BE PAYING ANY MORE THAN 2%.
YOU CAN SEE THAT UNDER THESE RECOMMENDATIONS FROM THE RACK, UM, OUR INSIDE CITY LIMIT CUSTOMERS, THEIR BILLS COULD BE, UH, ONE ANYWHERE FROM A THIRD TO, TO 60% LOWER THAN WHAT THEY'RE PAYING NOW.
AND YOU DON'T REALLY SEE ANYBODY'S THERE.
THAT IS MORE THAN 2%, AND MOST OF THOSE ARE QUITE A BIT LESS THAN 2%.
UM, THE SECOND LINE ON EACH OF THOSE, UH, BARS OR THOSE, THOSE, UH, BANDS IS WITH THE STORMWATER FEE.
AND SO I DID WANNA POINT OUT THAT WITH THE STORMWATER FEE THEY ARE PAYING, SOME OF THEM ARE PAYING A LITTLE BIT MORE THAN 2%, BUT, UM, AT THIS POINT, THE STORMWATER FEE IS NOT DISCOUNTED, UH, BASED ON INCOME.
I'M NOT SURE IF THAT'S SOMETHING THAT THE CITY, UH, COULD CONSIDER.
BUT, UM, RIGHT NOW FOR, PARTICULARLY FOR SOMEBODY NOT USING A WHOLE LOT OF WATER, UM, IN OUR AFFORDABILITY PROGRAM, THAT MAY BE THE BIGGEST LINE, UM, ON THEIR BILL IS THE, IS THE STORM WATER FEE.
UM, SO AVERAGE BILL, I'VE TALKED ABOUT THIS A BIT, UM, ABOUT OUR AVERAGE CUSTOMER USES A LITTLE BIT.
UH, RESIDENTIAL CUSTOMER USES A LITTLE BIT LESS THAN 6,300 GALLONS OF WATER.
AND RIGHT NOW, THAT AVERAGE BILL IS THAT, UH, MIDDLE GREEN BAR, $66 AND 68 CENTS.
THAT'S WHAT THEY PAY TODAY UNDER THE, THE RACKS RECOMMENDATIONS THAT WOULD GO DOWN TO $60 AND 88 CENTS.
THAT'S A REDUCTION OF ALMOST, UM, 9% AND ALMOST $6.
SO, UH, PRETTY SIGNIFICANT REDUCTION, UM, AT A TIME FOR MOST PEOPLE WHEN ALL THE REST OF THEIR BILLS ARE GOING UP.
THAT LIGHTER GREEN PORTION THAT'S KIND OF, UH, HALFWAY DOWN THAT GREEN, THOSE GREEN COLUMNS ARE WHAT OUR AFFORDABILITY, SOMEBODY IN THE, OUR AFFORDABILITY PROGRAM TODAY AT THE LOWEST LEVEL OF INCOME IS PAYING FOR THAT AVERAGE BILL.
SO $38 AND 33 CENTS IS WHAT THEY PAY TODAY WITH THE DISCOUNT UNDER THIS, THESE RECOMMENDATIONS FOR A SEPARATE RATE STRUCTURE, THAT BILL WOULD GO DOWN TO $25 AND 32 CENTS.
THAT'S A $13 REDUCTION, AND IT'S ABOUT, UH, ABOUT 30% REDUCTION FROM WHAT THEY'RE PAYING TODAY.
SO PRETTY SIGNIFICANT CHANGE FOR THOSE FOLKS.
THERE ARE A NUMBER OF OTHER RATE RECOMMENDATIONS THAT THE RAC HAS, UH, MADE.
THEY LOOKED AT ALL OF OUR RATE STRUCTURES, AND THEY ARE RECOMMENDING A FEW THINGS.
UM, ON OUR GENERAL CLASS, AS I MENTIONED, THAT'S COMMERCIAL, INDUSTRIAL, MULTIFAMILY, THAT'S INDOOR WATER USE, NOT THEIR, NOT THEIR LANDSCAPING USE.
UH, CURRENTLY WE CHARGE, UM, BASED ON IT IS A BLOCK RATE, BUT IT'S BASED ON THEIR LAST YEAR'S AVERAGE.
SO AS LONG AS THEY'RE USING CLOSE TO WHAT THEY USED LAST YEAR, THEY PAY THE LOWEST RATE.
BUT IF THEY EXCEED LAST YEAR'S, THEY'LL START PAYING, UM, HIGHER RATES AS THEY GO THROUGH.
UH, THE RACK DID EVALUATE A NUMBER OF, UH, ALTERNATIVE RATE STRUCTURES.
UM, FOR GENERAL CLASS CUSTOMERS.
I WILL TELL YOU THAT MOST UTILITY, MOST WATER UTILITIES HAVE WHAT THEY CALL A UNIFORM VOLUMETRIC RATE FOR COMMERCIAL CUSTOMERS.
THEY PAY, EVERY CUSTOMER PAYS THE SAME RATE PER VOLUME.
UM, THERE'S NO PEAKING CHARGES.
UM, AND, UH, THAT'S PRETTY COMMON FOR COMMERCIAL CLASSES.
YOU RARELY SEE WHAT WE DO IN OUR RESIDENTIAL SIDE, WHICH IS AN INCLINING BLOCK RATE, WHERE YOU GET A CERTAIN AMOUNT OF USAGE AT ONE PRICE AND THEN IT, AND THEN ADDITIONAL AMOUNT OF USAGE AT A HIGHER PRICE, ET CETERA.
BUT OUR, OUR APPROACH IS BASICALLY TO SAY, IF YOU, IF YOU ARE A CONSISTENT USER, YOU'LL GET THE LOWEST PRICE, BUT IF YOU ARE NOT CONSISTENT, IF YOU PEAK, YOU WILL PAY MORE.
AND THAT'S HOW COST GETS ALLOCATED TO CLASSES.
PEAKER PEAKING CLASSES GET MORE COST ALLOCATED TO THEM BECAUSE YOU NEED TO HAVE BIGGER INFRASTRUCTURE TO MEET THOSE PEAKS.
SO OUR CURRENT APPROACH TO CHARGING GENERAL
[00:30:01]
CLASS DOES HAVE THOSE, THOSE PEAKING CUSTOMERS PAYING MORE FOR THE WATER THAT THEY USE, THE RACK, UH, FELT LIKE THAT WAS A, UM, A GOOD APPROACH.THEY, UH, WERE NOT RECOMMENDING THAT WE CHANGE THAT STRUCTURE, UH, OTHER THAN TO UPDATE THE RATES FOR COST OF SERVICE.
AND, AND AS I MENTIONED, THOSE PEAKING CUSTOMERS THEN PICK UP A LITTLE BIT MORE OF, UH, THAT COST, UM, AND, UH, UM, ENSURE THAT THAT, THAT THAT FAIRNESS, IF YOU WILL.
UM, WE ALSO ASK THEM TO LOOK AT MULTI-FAMILY AND WHETHER OUR MULTI-FAMILY CUSTOMERS SHOULD BE BROKEN OUT OF GENERAL CLASS.
AND, UM, THAT'S A TOUGH SITUATION.
I THINK A LOT OF TIMES PEOPLE THINK, WELL, IF WE BREAK THEM OUT, WE'LL BE ABLE TO LOWER THEIR RATES.
BUT ACTUALLY, OUR MULTIFAMILY CUSTOMERS ARE VERY CONSISTENT CUSTOMERS.
THEY USE A VERY CONSISTENT AMOUNT OF WATER MONTH IN, MONTH OUT, YEAR IN, YEAR OUT.
UM, AGAIN, THEY'RE LANDSCAPING USE, THAT'S A SEPARATE METER, BUT INSIDE THE APARTMENTS VERY CONSISTENT USAGE, WHICH MEANS THEY'RE GETTING OUR VERY LOWEST RATE.
UM, AND IF YOU WERE TO BREAK THEM OUT, THEIR COST, UM, THAT WOULD BE ALLOCATED TO THEM WOULD BE MORE THAN THE RATE THAT THEY'RE CURRENTLY PAYING SINCE MORE, I THINK IT'S LIKE 88% OF OUR APARTMENT COMPLEX BILLS ARE IN THAT FIRST BLOCK THAT THAT MEANS THAT LOWEST BLOCK, UM, BY BREAKING THEM OUT, THE, THEIR RATES WOULD HAVE TO INCREASE THE RACK LOOKED AT THAT PRETTY HARD AND SAID, YOU KNOW WHAT, MAYBE IT'S NOT A GOOD TIME TO BE BREAKING THEM OUT.
BUT THEY DID ASK THAT WE CONDUCT A STUDY, UM, REALLY KIND OF DELVE INTO HOW APARTMENTS USE WATER, UM, IF WE CAN TELL WHAT THEIR AVERAGE USAGE IS PER UNIT, PER, YOU KNOW, UH, INDIVIDUAL LIVING THERE, ET CETERA.
AND I THINK WE'RE GONNA GET A LOT OF THAT INFORMATION, PARTICULARLY AS WE MOVE MORE THROUGH OUR, OUR, UM, ADVANCED METER INFRASTRUCTURE, OUR ELECTRONIC METER PROGRAM.
BUT, UH, SO THAT MAYBE IN THE FUTURE WE, MAYBE WE CAN DEVELOP A RATE THAT TALKS ABOUT, YOU KNOW, THAT TIES IT TO KIND OF THE NUMBER OF UNITS THEY HAVE OR THE NUMBER OF, OF, UH, UH, YOU KNOW, BEDROOMS, IF YOU WILL, IN EACH OF THE UNITS, THOSE KINDS OF THINGS.
UM, SO THAT'S SOMETHING THAT WE'LL BE LOOKING AT, UH, OVER THE NEXT FEW YEARS, UH, AS WE THINK ABOUT THE NEXT RATE STUDY FIVE YEARS OR SO FROM NOW.
SO, UM, AGAIN, COST OF SERVICE ON, ON GENERAL CLASS SAID THEY WEREN'T PAYING ENOUGH.
UM, THEY, THOSE, SO THOSE RATES NEEDED TO BE ADJUSTED UPWARD.
UM, THE VAST MAJORITY OF OUR, UH, GENERAL CLASS CUSTOMERS ARE GONNA SEE ABOUT A 7% INCREASE IN THEIR, UH, WATER AND SEWER BILL.
SOMEBODY USING, UM, A VERY SMALL CUSTOMER USING A VERY SMALL AMOUNT OF WATER, MAY ACTUALLY SEE A SMALL DECREASE IN THEIR BILL BECAUSE FIXED CHARGES ARE GOING DOWN.
WE DO TIE IT THE COMMERCIAL CLASS OR GENERAL CLASS FIXED CHARGES TO OUR RESIDENTIAL FIXED CHARGES.
RESIDENTIAL FIXED CHARGES ARE GOING DOWN.
SO, SO ARE, SO, SO ARE THE GENERAL CLASS, BUT THIS, YOU KNOW, THAT VERY FIRST ROW OF A THOUSAND GALLONS, THAT'S A VERY SMALL BUSINESS THAT PERHAPS, MAYBE IT'S JUST A, YOU KNOW, A MAYBE A PROFESSIONAL OFFICE WITH A, A BATHROOM OR SOMETHING LIKE THAT.
SO THOSE FOLKS MAY SEE A SMALL DECREASE, BUT BY AND LARGE, MOST OF THE GENERAL CLASS CUSTOMERS SHOULD SEE ABOUT A 7% INCREASE IN THEIR BILL IRRIGATION CLASS.
AS I MENTIONED, THOSE ARE THOSE GENERAL CLASS CUSTOMERS THAT HAVE A SEPARATE IRRIGATION METER.
IT DOES APPLY TO THEIR OUTDOOR USAGE.
AND, UM, THAT COST IS, UM, WHAT'S KEPT, UM, EQUAL TO THEIR REVENUE CONTRIBUTION.
AND WHEN I SAY THAT IT, IF YOU WERE TO LOOK AT THEM, UH, THEIR, THEIR COST OF SERVICE THAT GETS ALLOCATED TO THEM WOULD BE LESS THAN THE REVENUE, THE RATES THAT THEY'RE PAYING.
BUT BECAUSE CONSERVATION IS SUCH A HUGE OBJECTIVE FOR BOTH SIZES, UTILITY AND, AND RATE ADVISORY COMMITTEE, WE, UM, WE KEPT THEIR, THEIR REVENUE CONTRIBUTION THE SAME.
AND THAT BENEFIT THEN WAS GIVEN BACK TO OUR OTHER CUSTOMERS, OUR RESIDENTIAL CLASS CUSTOMERS AND THE GENERAL CLASS CUSTOMERS ON THEIR, THEIR INDOOR USE.
UM, SO NO REAL, UH, BIG CHANGE FOR IRRIGATION CLASS.
THEY'RE ALREADY VERY, UH, THE, THEY HAVE AN INCLINING BLOCK STRUCTURE AND, UM, LEMME GO AHEAD AND SHOW YOU THAT.
AND SO THOSE, THOSE RATES CHANGED JUST SLIGHTLY.
UM, WE DID CHANGE THE BLOCK, THE BLOCKS TO MATCH UP A LITTLE BIT MORE, UH, CLOSELY TO, UM, UM, THOUSAND GALLON INCREMENTS.
AND, UM, BUT BY AND LARGE, UH, THEY'RE NOT GONNA SEE MUCH OF A CHANGE IN THEIR BILL AT ALL.
THEY WILL PICK UP THE, UM, ASSISTANCE PROGRAM PASSED THROUGH THAT.
UH, WE TALKED ABOUT TO PAY FOR THE COST OF THE, UH, UM, AFFORDABILITY PROGRAM.
AND SO, UH, FOR FOLKS USING MORE THAN ABOUT SEVEN OR 8,000 GALLONS, THEY MIGHT SEE A ONE OR 2% INCREASE ON THEIR IRRIGATION.
UM, BILL, THE LAST, UH, RATE RECOMMENDATION REVOLVES AROUND RECYCLED WATER.
UM, SO THE RECYCLED WATER SYSTEM WAS, UH, PUT INTO
[00:35:01]
PLACE BACK, OH, AROUND 2000.AND THE RATES WERE STRUCTURED IN A WAY TO ENSURE THAT WE COULD TEMPT CUSTOMERS OR INCENT CUSTOMERS TO MOVE OFF OF POTABLE WATER AND ONTO RECYCLED WATER.
AND I MENTIONED THAT THESE ARE COMMERCIAL CUSTOMERS THAT CAN CONNECT TO THE INFRASTRUCTURE THAT WE HAVE ACROSS THE CITY.
UM, POTABLE WATER RATES HAVE GROWN OVER TIME.
RECYCLED WATER RATES HAVE BEEN ADJUSTED, BUT THEY HAVE NOT REALLY KIND OF KEPT PACE WITH THE, WITH THE RATE INCREASES ON THE POTABLE WATER SIDE.
SO RIGHT NOW, THEY'RE RECOVERING ABOUT A THIRD OF THE COST OF THAT SYSTEM, AND THEY'RE PAYING ANYWHERE FROM 20 TO 30% OF WHAT POTABLE WATER RATES ARE.
AGAIN, THIS HAS BEEN GOING ON THROUGH EVERY RATE STUDY.
WE MAKE UP THE DIFFERENCE BY THE OTHER RATE CLASSES.
UM, THE 2019 RACK LOOKED AT THIS PRETTY HARD AND RECOMMENDED THAT WE INCREASED POT, THAT WE INCREASED RECYCLED WATER RATES.
UM, THE, BECAUSE THE, THAT RACK WAS SUSPENDED, UH, DUE TO COVID, NOTHING, UH, WENT INTO PLACE.
UM, THE 2022 RACK LOOKED AT THE, THE 2019 RACK'S RECOMMENDATION AND SAID THEY AGREED THAT THAT RECYCLED WATER CUSTOMERS NEED TO START PICKING UP MORE OF THEIR COSTS.
WE WANNA MAKE SURE IT'S STILL, UM, INCENTIVIZES THEM TO NOT MOVE BACK TO POTABLE.
BUT THEY DID RECOMMEND THAT WE INCREASE RECYCLED WATER RATES 15% IN THE FIRST YEAR.
SO THIS, THAT WOULD BE NEXT YEAR, AND THEN 10% A YEAR THEREAFTER FOR FOUR MORE YEARS.
IF ALL OF THOSE RATES, UM, WERE TO GO INTO PLACE, UH, IT WOULD BRING RECYCLED WATER CUSTOMERS MUCH CLOSER TO RECOVERING THEIR COST OF SERVICE BY THE END OF YEAR FIVE.
UM, BUT IT'S STILL GOING TO BE A BENEFIT.
THE, THE, THE PRICING WILL STILL BE LESS THAN POTABLE.
AND, UH, WE DO WANNA MAKE SURE THAT, YOU KNOW, WE, WE INCENTIVIZE PEOPLE, UH, TO, TO GET ONTO RECYCLED WATER, UH, FROM AN ENVIRONMENTAL STABILITY, UH, PERSPECTIVE, UM, IT'S A VERY EFFECTIVE, UH, COST-EFFECTIVE, UH, ALTERNATIVE WATER SUPPLY.
SO, UH, THIS SLIDE SHOWS WHAT THE IMPACT WOULD BE FOR DIFFERENT, UH, LEVELS OF, OF RECYCLED WATER CUSTOMERS.
WE'VE KIND OF BROKEN THEM INTO THIRDS, UM, KIND OF THE FOLKS THAT USE THE LOWEST AMOUNT ARE IN THAT FIRST ROW, UM, ABOUT 200, UM, THOUSAND GALLONS A YEAR.
UM, AND RIGHT NOW THE, UH, THEY'RE PAYING A LITTLE UNDER A HUNDRED DOLLARS A MONTH, IF YOU WILL, THAT, THAT 1176 IS AN ANNUAL CHARGE.
THE IMPACT TO THEM WOULD BE ABOUT 180, A LITTLE LESS THAN $180 FOR THE WHOLE YEAR.
SO THAT'S LESS THAN $15 A MONTH IS WHAT THEIR RATES WOULD GO UP.
UM, WITH THE 15%, UM, THE FOLKS IN THE MIDDLE, UH, USING, AS YOU CAN SEE THERE, 2.8 MILLION GALLONS A YEAR, THEY WOULD SEE ABOUT A, UM, A HUNDRED DOLLARS A MONTH CHANGE IN THEIR BILL.
AND THEN FOLKS USING, UH, THE HIGHEST LEVELS, UH, WOULD SEE, UH, PROBABLY A LITTLE BIT MORE THAN A THOUSAND DOLLARS A MONTH AS A RESULT OF THE 15% RATE INCREASE AT THE VERY BOTTOM ROW IS, YOU KNOW, WE ENTERED INTO AN AGREEMENT WITH THE CITY OF SAN ANTONIO THIS SUMMER TO PROVIDE, WE'VE ALWAYS BEEN PROVIDING WATER INTO THE RIVER, UH, INTO SAN ANTONIO RIVER TO SUPPORT THE DOWNTOWN AREA.
UM, BEGINNING, UH, THIS YEAR, THEY, UH, THE CITY WILL BE PAYING, WE'LL BE, WE'LL BE PAYING SOMETHING TO SIZE FOR THAT.
THEY'RE PAYING OUR VERY LOWEST RATE, WHICH IS OUR EDWARDS EXCHANGE RATE.
SO THIS WILL HAVE AN IMPACT ON, UM, ON, UH, WHAT THEY WOULD BE PAYING US AS WELL.
UH, YOU CAN SEE THERE THAT IT, UH, LOOKS LIKE IT'S A LITTLE BIT ABOUT A, UM, LESS THAN $130,000 FOR THE WHOLE YEAR.
AND IT'S MY UNDERSTANDING THAT THAT WAS, UM, PERHAPS CONSIDERED IN THE BUDGET, UH, AS THAT WAS DEVELOPED FOR FISCAL YEAR, UH, 23.
THIS JUST SHOWS YOU KIND OF THE IMPACT OF A FIVE YEAR ON EACH OF THOSE CUSTOMERS, WHAT THEIR AVERAGE RATE WOULD BE, AND AGAIN, VERY MUCH AFFORDABLE, UM, COMPARED TO POT POTABLE.
MOST OF OUR FOLKS, UM, ON THE RECYCLE PROGRAM DO USE IT FOR LANDSCAPING PURPOSES.
AND WHEN YOU THINK ABOUT THOSE IRRIGATION RATES, UM, THERE'S CERTAINLY VERY AFFORDABLE COMPARED TO THAT.
SOME DO USE IT FOR MANUFACTURING PURPOSES, AND SO WE DO NEED TO MAKE SURE THAT WE'RE CAREFUL NOT TO, NOT TO BRAISE THE RATES SO MUCH THAT THEY WOULD NOT WANT TO STAY ON RECYCLED WATER.
SO, TIMELINE, UM, WE FINALIZED THE, THE, UH, THE RACKS WORK.
UM, IN AUGUST, THEY ISSUED A, A REPORT WITH THEIR RECOMMENDATIONS.
WE'VE BEEN GOING THROUGH A NUMBER OF PUBLIC OUTREACH, UM, EVENTS.
I THINK I'VE MET WITH, UH, NEIGHBORHOOD ASSOCIATIONS IN MOST OF THE COUNCIL DISTRICTS.
UM, AND WE STILL HAVE MORE TO COME.
WE, I'VE MET WITH, UH, MOST OF THE INDIVIDUAL, UH, COUNCIL MEMBERS.
UH, WE'RE GOING TO BE MEETING WITH, UH, THE CHAMBERS, UH, IN OCTOBER.
SO WE'RE REALLY WANTING TO MAKE SURE THAT, UM, EVERYBODY UNDERSTANDS THESE CHANGES.
I'LL TELL YOU, THE FEEDBACK I'VE GOTTEN HAS BEEN VERY
[00:40:01]
FAVORABLE.UM, MOST FOLKS ARE VERY HAPPY TO SEE, UH, A REDUCTION IN THEIR, THEIR WATER AND SEWER BILLS.
UM, OUR BOARD WILL BE CONSIDERING, UH, THESE RECOMMENDATIONS FOR APPROVAL IN ON NOVEMBER 1ST, AND THEN WE WOULD COME BACK TO YOU ON NOVEMBER 10TH.
UM, WE WILL BE GIVING A VERY SIMILAR PRESENTATION ON THURSDAY AT A SESSION, UM, IN THE AFTERNOON.
UM, AND SO, UM, YOU GUYS WILL HAVE HEARD A LOT OF THIS ALREADY, BUT, UH, WE'LL, WE'LL DO IT AGAIN THERE.
AND THEN IF THEY ARE APPROVED IN NOVEMBER, WE WILL, UH, THEY WILL TAKE EFFECT IN, UH, JANUARY ONE, AND MOST OF OUR CUSTOMERS WILL SEE THIS ON, UM, IN THEIR FEBRUARY BILLS.
UM, I DID WANNA POINT OUT, WE DO HAVE A RATE CALCULATOR ON OUR WEBSITE.
CUSTOMERS CAN GO OUT THERE AND PUT IN THEIR BILL USAGE, AND IT'LL SHOW THAT WHAT THEIR BILL IS RIGHT NOW, AND THEN WHAT THAT WOULD BE UNDER THESE RECOMMENDATIONS.
SO I DO ENCOURAGE FOLKS TO, TO DO THAT, TO SEE HOW DOES IT IMPACT ME PERSONALLY.
SO ANY QUESTIONS? THAT'S GREAT, MARY.
THANK YOU FOR THE PRESENTATION.
UH, WE'RE GONNA GO AHEAD AND ADDRESS THIS ISSUE, THIS ISSUE FOR ANY QUESTIONS THAT YOU HAVE, AND THEN WE'LL GO ON TO THE OTHERS.
SO I THANK COUNCILMAN CAB HAVADA, AND THEN I'LL MAKE SURE ALL OF YOU GET A CHANCE TO ASK SOME QUESTIONS.
GO AHEAD, COUNCILMAN AND THANK YOU CHAIR, AND THANK YOU, MARY, FOR THE PRESENTATION.
I WANNA, UH, THANK ALSO REM, WHO IS OUR DISTRICT SIX APPOINTEE TO THE RAC.
AND, UH, HE'S, UH, KEPT ME INFORMED ON THE PROCESS, AND I APPRECIATE ALL THE WORK THAT THE RAC DOES, UM, FOR OUR COMMUNITY.
I, I'M CURIOUS, YOU WENT THROUGH DIFFERENT, UM, KIND OF AFFORDABILITY LEVELS, UH, FOR OUR RESIDENTS.
DO YOU HAVE SOMETHING SIMILAR FOR, FOR BUSINESSES? ARE, IS THERE LIKE, UM, SOMETHING LIKE THAT FOR A MICRO BUSINESS, A SMALL BUSINESS, A LARGER BUSINESS, UM, SO A DIFFERENT RATE STRUCTURE, OR? NO.
SO RIGHT NOW, EVERYBODY THAT IS IN THE GENERAL CLASS PAYS THE SAME RATE STRUCTURE.
LET ME SEE IF I'VE GOT A BACKUP SLIDE THAT I CAN PULL UP.
YEAH, SO AGAIN, IT, IT IS REALLY ALL ABOUT HOW THEIR USAGE COMPARES TO THE PRIOR YEAR.
AND AS LONG AS THEY ARE CONSISTENT, WHETHER THEY'RE, YOU KNOW, IF THEY'RE USING 10,000 GALLONS A MONTH OR WHETHER THEY'RE USING A HUNDRED THOUSAND GALLONS A MONTH, IF THAT'S WHAT THEY WERE USING ON AVERAGE LAST YEAR, THEN THEY PAY THAT LOWEST RATE AND OVER 83% I THINK OF OUR BILLS.
83% OF OUR BILLS ARE AT THAT VERY LOWEST RATE.
AND SO I THINK, YOU KNOW, AGAIN, UM, WHAT, WHERE THIS, THESE HIGHER RATES MAY IMPACT FOLKS IS WHEN THEY, UM, UH, HAVE PEAKING.
SO MAYBE THEY'RE A SEASONAL BUSINESS OR MAYBE THEY'RE GROWING BUSINESS, BUT IF THEY ARE A GROWING BUSINESS, THEN THE NEXT YEAR THEY'RE, THEY'RE PRIOR YEAR AVERAGE RESETS AT A HIGHER LEVEL, SO THEY'RE BACK DOWN INTO THESE LOWER BLOCKS.
SO IT, UM, WE DON'T, YOU KNOW, WE DON'T TRY TO DIFFERENTIATE.
UM, YOU COULD CERTAINLY, UH, SOMEBODY ASKED, YOU KNOW, COULD WE BREAK THE GENERAL CLASS DOWN FURTHER INTO DIFFERENT GROUPS? UM, YOU COULD ACTUALLY HAVE SEPARATE RATES FOR EVERY SINGLE CUSTOMER, BUT IT DOESN'T NECESSARILY SAY THAT THEY'RE GONNA BE LOWER BECAUSE YOU'RE GONNA BE LOOKING AT HOW THEY USE WATER.
AND IF THEY'RE CONSISTENT, THEIR WA THEIR RATES ARE ALWAYS GONNA BE LOWER THAN IF THERE ARE PEAKERS, THEIR RATES WOULD NEED TO BE HIGHER BECAUSE, BECAUSE OUR INFRASTRUCTURE NEEDS TO BE SIZED TO MEET THEIR PEAK DEMANDS.
SO, UM, BUT ACCORDING TO THIS SLIDE THOUGH, IF THEY FALL IN THAT LOWEST CATEGORY, THEY, THAT, THAT DOESN'T, WE DON'T DIFFERENTIATE BETWEEN, UM, IN THE GENERAL CLASS BETWEEN A RESIDENT OR A SMALL OR A BUSINESS.
UH, THIS IS GENERAL CLASS, RESIDENTIAL CLASS IS A DIFFERENT CLASS, SO, OH, I SEE.
SO THESE ARE JUST COMMERCIAL, INDUSTRIAL, AND MULTIFAMILY IS GENERAL CLASS.
UM, AND THEN YOU SAID THE COMMERCIAL RATES, IF I HEARD YOU CORRECTLY, WE'LL SEE ABOUT A 7% INCREASE THEIR AVERAGE BILL, ABOUT 7%.
HAVE YOU, UM, IS THERE A PLAN TO COMMUNICATE THIS TO THE COMMUNITY? SO WE'VE BEEN, UH, CERTAINLY BRIEFING, AGAIN, ALL THE NEIGHBORHOOD ASSOCIATIONS.
NOW GRANTED THEY'RE FOCUSED ON RESIDENTIAL RATES MORE THAN COMMERCIAL.
AND SO I'VE HAD THOSE KINDS OF CONVERSATIONS MM-HMM.
UM, AND THEN WE ARE MEETING WITH EACH OF THE CHAMBERS.
UM, WE ARE SENDING OUT A RATE NOTICE IN THE BILLS, UM, NEXT MONTH.
SO WE'VE GOT A BIG, UH, WEB PRESENCE ON OUR, ON OUR WEBSITE ABOUT THIS.
SO WE'RE DEFINITELY TRYING TO GET THE WORD OUT.
WELL, ANYTHING THAT, UM, WE CAN DO TO HELP, UH, SURE.
UH, WE HAVE, YOU KNOW, WE ALL HAVE SURE.
OUR DIFFERENT CHANNELS, I'D BE VERY HAPPY TO, TO HELP.
COUNCILWOMAN, UH, COUNCILWOMAN, UH, ROCHA GARCIA, AND THEN COUNCILWOMAN SANDWELL.
UM, THIS, UH, PRESENTATION WAS VERY HELPFUL.
I'VE ALSO BEEN, UH, KEEPING TRACK THROUGH MY RACK APPOINTEE GENEVIEVE TRINIDAD.
[00:45:01]
LISTENING TODAY.UM, ON SLIDE 15, THE FIRST BULLET STATES PROPOSED AFFORDABILITY PROGRAM RATE TECHNOLOGY, THE PERCENTAGE OF POVERTY WITHIN THE CITY.
AND I, I DON'T KNOW IF THIS IS THE FIRST TIME THAT I SEE YOU ALL DO THIS OR, OR CLEARLY ACKNOWLEDGE IT, BUT I JUST WANTED TO THANK ALL OF THE RAC TEAM BECAUSE, AND IN OUR DISCUSSIONS, WE'RE OFTEN REMINDED THAT, UM, WE HAVE THE LOWEST RATES IN THE CITY, BUT EVERY TIME THAT I HEAR THAT, I ALSO WANNA REMIND OURSELVES THAT WE HAVE THE LOW, SOME OF THE LOWEST WAGES, AND THAT OUR CONCENTRATION OF POVERTY IS A LOT HIGHER.
SO I JUST WANTED TO PUBLICLY ACKNOWLEDGE THE RACK FOR, UM, MAKING THIS SUCH A, SUCH A GREAT POINT.
I'M ALSO, UM, HAPPY TO SEE THAT UPLIFT CUSTOMERS WILL BE PAYING 50% LESS THAN THE UNAFFORDABILITY CUSTOMERS.
I THINK THAT WHEN INFLATION IS SO HIGH, UM, THERE'S NOT NECESSARILY AN INCREASE IN SOCIAL SECURITY BENEFITS, FOR INSTANCE, THAT, THAT IT'S IMPORTANT TO CONSIDER OUR AFFORDABILITY PROGRAM.
ON SLIDE 31, YOU HAVE YEAR ONE, WHEN DO YOU ANTICIPATE YEAR ONE TO START? SO THAT WOULD BE 2023.
IF THESE ARE APPROVED, UM, BY OUR BOARD AND CITY COUNCIL 2023, UH, IN JANUARY, THE YEAR ONE RATES WOULD GO UP.
AND THEN DO YOU ANTICIPATE ANY CUSTOMERS DROPPING OFF? UM, DUE TO THE, THE PROPOSED, NO.
I MEAN, WE HAD A, A, A REPRESENTATIVE ON THE RACK THAT WAS, UH, FOR, WAS REPRESENTING RECYCLED CUSTOMERS.
UH, WE ALSO HAD, UH, AN INDIVIDUAL FROM THE SAN ANTONIO MANUFACTURING ASSOCIATION, WHICH REPRESENTS A NUMBER OF, OF COMMERCIAL CUSTOMERS THAT USE RECYCLED WATER.
AND WE TALKED A LOT ABOUT THIS, IS THIS GONNA BE THE DEAL BREAKER? RIGHT.
AND AT THIS POINT, UM, THE FEEDBACK THAT WE'VE GOT IS THIS IS NOT GONNA MAKE ANYBODY WANT TO CHANGE OUT OF POTABLE WATER.
AND THAT'S GOING TO BE CRITICAL.
WE WILL CONTINUE TO, TO ENGAGE WITH OUR RECYCLED WATER CUSTOMERS AND MAKE SURE THAT THAT IS NOT THE CASE.
UM, UH, BECAUSE WE REALLY WOULDN'T WANNA LOSE ANYBODY OFF THE SYSTEM.
AND SO DURING ARPA, YOU ALL WENT IN, AND I THINK IT WAS COUNCILMAN SANDOVAL HAD BROUGHT THIS UP ORIGINALLY DURING THIS COMMITTEE MEETING ABOUT HOW WE COULD JUST KIND OF PLACE EVERYBODY ON THE AFFORDA OR, OR ON TRACK TO RECEIVE SOME SORT OF HELP, RIGHT? IS HOW, HOW ARE YOU ALL GETTING THE INFORMATION OUT TO CUSTOMERS WHO MIGHT NOT BE ENROLLED JUST YET IN THE AFFORDABILITY PROGRAM? IS IT GONNA BE MORE OF A PROACTIVE APPROACH? HOW ARE YOU TARGETING THE NEEDIEST CUSTOMERS? SURE.
SO, UM, AND THEN THERE IS A, I I THINK THE LAST PRESENTATION WILL BE A LITTLE BIT ON OUR DELINQUENCIES, AND WE CAN TALK A LITTLE BIT ABOUT THE ARPA BENEFITS THAT WE'VE BEEN ABLE TO APPLY TO OUR CUSTOMERS, BUT WE ARE USING, UM, UM, A LOT OF, UH, UH, THE VARIOUS METHODS TO TRY TO IMPROVE AND INCREASE THE ENROLLMENT.
I KNOW THAT GINO, UH, RAMOS AND HIS TEAM WAS OUT THIS WEEKEND IN, UH, DISTRICT FIVE, UM, WITH, UH, SOME BLOCK WALKING, RIGHT? AND SO WE IDENTIFIED IN THOSE, UH, VERY, UH, LOW INCOME CENSUS TRACKS CUSTOMERS THAT WERE ON OUR PROGRAM AND THEN LOOKED LIKE, ARE THERE, ARE THERE GAPS, RIGHT? SO IF THERE'S A HOUSE, IF SOMEBODY IN HOUSE A IS ON THE PROGRAM AND HOUSE C IS ON THE PROGRAM, BUT THAT PERSON IN HOUSE B IS NOT ON THE PROGRAM, THEN YOU KNOW THAT WE TRIED TO CONTACT THEM DIRECTLY TO SAY, HEY, YOU MIGHT QUALIFY.
LET'S, AND IT'S REALLY A FAIRLY EASY PROCESS TO APPLY.
SO WE ARE DOING THAT, WE'RE DOING DIRECT MAIL, WE'RE DOING, YOU KNOW, CALL OUTS, UM, WORKING WITH DIFF DIFFERENT, DIFFERENT COUNCIL DISTRICTS TO TRY TO IDENTIFY THOSE CUSTOMERS.
BUT OUR GOAL WOULD BE TO TRY TO GET A LOT MORE CUSTOMERS, UM, IN THE PROGRAM THAT ARE ELIGIBLE BECAUSE AGAIN, THERE'S A NEED, RIGHT? AND WE NEED TO MAKE SURE THAT THEY'RE, UM, UH, RECEIVING THAT, THAT BENEFIT THAT THEY'RE, THEY'RE ELIGIBLE FOR.
AND MARY AND GABBY, NO, I APPRECIATE THAT STRATEGY, RIGHT? THAT YOU'RE IDENTIFYING WHERE THERE MIGHT BE SOME HOLES.
UM, AND BY THE WAY, I, I VOLUNTEER TO GO BLOCK WALKING WITH YOU ALL WHEN YOU GO TO DISTRICT FOUR, SO COUNT ME IN.
UM, I, I FEEL LIKE A LOT OF TIME, AND WE SEE THESE LIKE PHOTO OPS ALL THE TIME, AND WE HAVE BLOCK WALKING, BUT IT'S ELECTED WITH LIKE, LITERALLY PEOPLE WHO VOTE.
SO THEY'RE NOT NECESSARILY THE ONES THAT, THAT, THAT DON'T, THAT ARE, THAT ARE IN NEED OF HELP.
RIGHT? UM, AND SO THANK YOU FOR WHOEVER CAME UP WITH THAT KIND OF STRATEGY TO FIGURE OUT WHERE THE HOLES ARE.
I THINK THAT'S EXACTLY WHERE WE NEED TO BE FOCUSED, AND THAT'S, UM, WHERE, WHERE, WHERE I COMMIT TO HELPING AS WELL.
I'M, I'M VERY CONFIDENT IN THIS AND I'M HAPPY TO, TO SEE THIS HOPEFULLY MOVE FORWARD.
THANK YOU MS. BAILEY FOR THE PRESENTATION.
AND, UM, I'M SORRY WE RAN LONG, UH, THE OTHER TIME, UH, AND WE WEREN'T ABLE TO HEAR FROM YOU.
BUT, UH, AND THANK YOU FOR THE ONE-ON-ONE, UH, BRIEFING WITH YOUR, WITH YOUR TEAM, MR. PUENTE.
UH, IT SEEMS TO ME THAT THIS MAY BE ONE OF THE MOST SIGNIFICANT CHANGES EVER MADE TO RATES, CERTAINLY FOR OUR AFFORDABILITY PROGRAM.
AND, UM, WHILE IN PAST RATE, STUDIES MIGHT HAVE LOWERED RESIDENTIAL RATES ON THE LOW END A LITTLE BIT, I DON'T THINK
[00:50:01]
IT THEY'VE BEEN AS SIGNIFICANT AS THIS REDUCTION.AND, UH, OF COURSE, UH, THE CHAIR, UH, FRANCIS GONZALEZ, WHO SEEMS TO HAVE DONE A, A TREMENDOUS JOB.
UH, SHE'S DONE AN OUTSTANDING JOB.
UM, I, I, UH, I, I AM PLEASED AGAIN WITH THE FACT THAT WE'RE LOOKING AT SOMETHING MORE EQUITABLE IN THE AFFORDABILITY AND IN THE REDUCTION OF THE, OF THE SEWER MM-HMM.
UM, I DO HAVE A, A COUPLE OF QUESTIONS.
UM, YOU, YOU TALKED ABOUT RATES BEING SET.
UH, SOME OF THE GENERAL CLASS RATES DEPEND ON WHETHER OR NOT A CUSTOMER IS A PEAKER OR NOT.
AND WHEN YOU SAY, UH, SO THAT CONSISTENT USE IS, IS CHEAPER, UH, WHEN YOU SAY PEAKER, IS THAT IN A GIVEN DAY IN THE YEAR? HOW DOES THAT WORK? SO WE LOOK AT IT MONTHLY.
UM, SO IF, IF LAST YEAR YOU USED, LET'S JUST SAY YOU USED, UM, AS A BUSINESS 120,000 GALLONS FOR THE ENTIRE YEAR, THAT AVERAGE IS 10,000 GALLONS A MONTH IN.
NOW THE CURRENT YEAR, IF YOUR BILL IS AT 10,000 GALLONS OR LESS, YOU PAY THAT LOWEST RATE IF IT'S MORE THAN 10,000, DEPENDING ON HOW MUCH MORE YOU'LL START GOING THROUGH THOSE HIGHER BLOCK RATES.
SO AGAIN, PEAKERS, WHEN I SAY PEAKERS, AGAIN, IT COULD BE BECAUSE THEY'RE, IT COULD BE SEASONAL, IT COULD BE BECAUSE THEY'RE GROWING, UM, BUT IT'S STILL PUT PUSHING A DEMAND ON OUR SYSTEM AND, AND, AND PUSHING UP THE COSTS THAT GET ALLOCATED TO THOSE, THE CUSTOMER CLASS AS A WHOLE.
AND SO THIS ALLOWS THE FOLKS THAT ARE, THAT ARE CREATING THOSE COSTS, IF YOU WILL, TO PICK UP THE, THE, THE REVENUE THAT'S NECESSARY FOR THAT.
WHEN YOU TALKED ABOUT, UM, THAT THERE WERE SOME COSTS IN THE GENERAL CLASS THAT HAD NOT BEEN FULLY ACCOUNTED FOR.
I, IS THAT HOW YOU DESCRIBED IT? WELL, ALSO WHAT HAPPENED, YOU KNOW, WE, WE DO THIS COST OF SERVICE STUDY EVERY FIVE YEARS.
UM, WE SET THEIR RATES TO RECOVER THEIR COSTS THEN, BUT THINGS CHANGE OVER, OVER THE YEARS, OVER THE YEARS.
AND SO FOR WHATEVER REASON, UM, THEIR USAGE PATTERNS EITHER CHANGED OR, UM, THE CUSTOMER GROWTH WASN'T QUITE THE SAME, BUT THEY WERE, WHAT THEY WERE PAYING WASN'T NOW RECOVERING ALL OF THEIR COSTS.
SO WE WEREN'T CHARGING THEM ENOUGH FIVE YEARS AGO.
WE WERE CHARGING THEM ENOUGH, BUT NOW FIVE YEARS HAVE GONE BY AND NOW WE'RE NOT CHARGING THEM ENOUGH ON THE OTHER SIDE.
THE CONVERSE SIDE OF THAT IS RESIDENTIAL.
WE WERE CHARGING THEM CORRECTLY AFTER THE LAST
AND THAT CAN HAPPEN JUST BY DIFFERENT, DIFFERENT SHIFTS IN GROWTH.
SO MAYBE OUR RESIDENTIAL CLASS IS GROWING AT A MUCH FASTER CLIP THAN OUR GENERAL CLASS, AND THEN THE USAGE PATTERNS ARE CHANGING.
OUR RESIDENTIAL CUSTOMERS ARE USING LESS WATER.
THEIR AVERAGE USE IS DROPPING PER CUSTOMER.
SO THAT MEANS LESS COST WILL GET ALLOCATED TO THEM.
UM, MY APPOINTEE SENT ME A, A CHART OF, UH, SOME GENERAL CLASS CUSTOMERS, THE BIGGEST ONES, THE ONES THAT HAD USED THE, THE MOST WATER.
AND YOU MENTIONED EARLIER THAT WHEN IT COMES TO MULTIFAMILY, THEY HAVE VERY CONSISTENT USE AND THEREFORE THEIR RATES ARE LOWER.
AND MAYBE YOU WERE COMPARING THEM TO RESIDENTIAL OR TO NO, NO.
WELL, THEY'RE PAYING THE LOWEST RATE.
UM, IN THE GENERAL CLASS, THEY'RE PAYING THAT, THAT, THAT BASE RATE.
SO THEY'RE PAYING THAT LOWEST BLOCK RATE.
SO THE, THE GRAPH HE SENT ME HAD THE TOP 10 USERS AND SAHA, AND WAS THE MULTIFAMILY ON THERE, BUT IT WASN'T THE LOWEST USER.
I THINK THERE WAS A, A PRIVATE INDUSTRY LOWEST USER.
SO THE TOP 10 IS, IS HOW MUCH WATER THEY'RE USING AND HOW MUCH REVENUE THEY'RE PAYING.
UM, SAHA IS A BIG CUSTOMER, RIGHT? SO THEY ARE, YOU KNOW, THEY'RE ONE OF OUR TOP 10 MM-HMM.
UM, BUT IT DOESN'T MEAN THAT THEIR RATE, AND I DON'T HAVE, I'M SORRY, I DON'T HAVE THAT SLIDE.
I'D HAVE TO LOOK AT THEIR AVERAGE RATE THAT THEY'RE PAYING MM-HMM.
UM, BUT, UH, IF THEY'RE, I WOULD HOPE THAT THEIR AVERAGE RATE IS PROBABLY LOWER THAN, THAN SOME, YOU'LL LOOK AT THAT, UH, YOU'LL LOOK AT THAT, THAT'S THAT, UH, CHART THAT WE PROVIDED.
AND IT DOES CALCULATE AN AVERAGE RATE PAID FOR EACH ONE OF THOSE.
AND THAT AVERAGE RATE HAS A LOT TO DO WITH NOT SO MUCH VOLUME AS IT HAS TO DO WITH ONE, HOW MANY CONNECTIONS DO THEY HAVE? BECAUSE THE MORE CONNECTIONS YOU HAVE, THE MORE FIXED CHARGES YOU HAVE, WHICH COULD MAKE THAT AVERAGE RATE GO UP.
THAT CHART HAPPENS TO INCLUDE THEIR IRRIGATION USE, UH, THEIR OUTDOOR USE.
SO IF YOU ARE USING OUTDOOR, YOUR AVERAGE RATE THAT YOU'RE PAYING IS HIGHER.
BUT YOU, AS YOU RECALL ON THAT CHART, OUR TOP 10 USERS ARE, UM, HOSPITAL SYSTEMS AND, UH, THE CITY OF SAN ANTONIO AND, UM, SCHOOL DISTRICTS, UH,
[00:55:01]
H E B IS ON THERE AS BEING, YOU KNOW, A HUGE MM-HMM.I THINK THERE WAS AN ARTICLE THAT RAN A FEW WEEKS BACK ABOUT OUR TOP COMMERCIAL USERS, AND THEY TALKED ABOUT HOW THEY USE WATER IN THEIR BUSINESS.
THEY TRY TO BE VERY EFFICIENT, BUT THEY DO USE A LOT OF WATER.
SO IF YOU WERE TO CHARGE BASED ON THE AMOUNT OF WATER THAT PEOPLE USE, SO PEOPLE THAT USE MORE JUST PAY A LOT MORE.
THEY, THEY, OF COURSE, THEY'RE GONNA PAY MORE, BUT THAT AVERAGE RATE IS RIGHT NOW UNDER OUR SYSTEM, MAY NOT BE MORE, IT DEPENDS ON HOW THEY USE THE WATER, BUT IF YOU WANTED TO SAY JUST BECAUSE THEY USED A LOT THAT THEY SHOULD PAY A HIGHER AVERAGE RATE, THAT'S WHO YOU'RE HITTING.
YOU'RE, YOU'RE HITTING FOLKS THAT ARE NOT NECESSARILY, UM, USING WATER INEFFICIENTLY, IT'S JUST THAT THEY HAVE MASSIVE AMOUNTS OF, OF PROPERTIES OR BUSINESSES OR WHATEVER SCHOOL DISTRICTS, YOU THINK ABOUT ALL THE DIFFERENT SCHOOLS IN THE WATER THAT THEY'RE USING.
THAT AVERAGE RATE CAN VARY, BUT IT HAS A LOT TO DO WITH, IS THERE ANY IRRIGATION USE? IS THERE, UM, ANY, UM, ARE THERE A LOT OF FIXED, ARE THERE A LOT OF METER CHARGES? ARE THERE A LOT OF FIXED CHARGES? AND THEN ARE THEY PEAKING? AND HOW DO YOU SEPARATE OUT THE IRRIGATION FROM THE SEPARATE NON, YOU HAVE A SEPARATE METER.
FOR FOR COMMERCIAL CUSTOMERS? YES.
DO ALL COMM COMMERCIAL CUSTOMERS HAVE A SEPARATE METER FOR IRRIGATION? THEY'RE REQUIRED TO HAVE, IF THEY HAVE AN IRRIGATION SYSTEM, THEY'RE REQUIRED TO HAVE A, ANY, ANY, UH, COMMERCIAL, UH, IRRIGATION SYSTEM CONNECTED AFTER 2001, I BELIEVE IS REQUIRED TO HAVE A SEPARATE METER.
IF THEY CONNECTED IT BEFORE 2001, WE ASSUME AN AMOUNT OF THEIR WATER USE IS GOING THROUGH THAT IRRIGATION SYSTEM.
AND THEN, UM, DO YOU VERIFY THOSE ASSUMPTIONS OR DO YOU HAVE A IT'S, UH, IT'S ANYWHERE FROM 20 TO 30%.
THEY CAN COME BACK WITH A STUDY AND TELL US THEY CAN REMOVE THE IRRIGATION SYSTEM IF THEY WANNA CAP THE IRRIGATION SYSTEM.
BUT, UH, 20 TO 30% USAGE IS, IS, IS PRETTY STANDARD FOR, FOR WHAT WE SEE EVEN AMONG OUR RESIDENTIAL CUSTOMERS.
SO DID, SO IS THAT VERIFIED IN SOME WAY? WELL, WE DON'T, WE DON'T PUT A METER ON THERE TO SEE, THEY DON'T HAVE A SEPARATE METER.
SO IT IS AN APPROXIMATION, BUT IT IS A, I WOULD SAY A, A, UM, A REASONABLE APPROXIMATION BASED ON WHAT WE SEE FROM OUR IRRIGATION CUSTOMERS THAT DON'T HAVE A SEPARATE METER.
WE SEE HOW MUCH THINGS PEAK IN THE SUMMERTIME.
UM, BUT, UH, FOR, FOR OUTDOOR LANDSCAPING, SO 20 TO 30% IS PRETTY STANDARD FOR OUTDOOR LANDSCAPING.
AND, UM, I DO HAVE, UH, ANOTHER QUESTION ABOUT MULTI-FAMILY.
THEN I DO WANNA GO BACK TO THE AFFORDABILITY, UH, PROGRAM.
UH, DO YOU COME ACROSS ANY MULTI-FAMILIES THAT ACTUALLY HAVE INDEPENDENT METERS PER UNIT? OR ARE THEY ALL PRETTY MUCH JUST, SOME OF THEM MAY, UH, MEET SUBMETER THEIR UNITS IN ORDER TO TRY TO ALLOCATE OUT THEIR WATER BUILD.
BUT, BUT SAWS DOES NOT, UH, INSTALL THOSE AND, AND DOES NOT ACCEPT WHATEVER READINGS THAT THEY WOULD READ.
WE PROVIDE WATER TO THE COMPLEX, AND THEN WHAT HAPPENS BETWEEN THE COMPLEX AND THE UNIT, A LOT CAN HAPPEN BETWEEN THERE, THERE COULD BE, THERE COULD BE LEAKY INFRASTRUCTURE, ET CETERA.
AND SO AT THIS POINT, THOSE ARE NOT OUR METERS ON, ON THE INDIVIDUAL UNITS.
UH, NOW THAT IS ONE OF THE THINGS THAT WE CAN LOOK AT AND HOPEFULLY GET INFORMATION FROM THOSE CUSTOMERS THAT MAY INDIVIDUALLY METER UNITS.
IT'S PRETTY HARD TO DO IN A COMPLEX.
IT'S A LOT DIFFERENT THAN INDIVIDUALLY MEETING YOUR METERING, YOUR ELECTRIC, UM, SERVICE INTO THAT UNIT.
WE'RE TALKING ABOUT PIPES, RIGHT? AND SO IF SOMEBODY LIVING ON THE THIRD FLOOR MAY BE GETTING WATER FROM THE SAME PIPE AS SOMEBODY THAT'S ON THE SECOND FLOOR, SO DO YOU HAVE TO PUT IN SEPARATE PIPES IN ORDER TO INDIVIDUALLY METER? YOU DON'T COME ACROSS THAT SEPARATE METERS APP? WE, WE, IF THEY'RE THERE, WE DON'T KNOW ABOUT THEM.
AND THEN, UM, GOING BACK TO THE AFFORDABILITY PROGRAM.
SO THE COST IS INCREASING AND, UH, WE'RE, WE WILL ALL BE SUPPORTING THAT, WHICH I, OF COURSE, I, I SUPPORT.
UM, BUT IS THE ASSUMPTION THAT WE WILL BE HELPING THE SAME NUMBER OF PEOPLE IN THIS REVISED PROGRAM RIGHT NOW FOR THE COST THAT WE'RE SHOWING? IT'S HELPING THE SAME NUMBER OF PEOPLE.
UM, IF WE WIND UP HELPING A LOT MORE, MORE PEOPLE GET ENROLLED, THE COST OF THAT PROGRAM IS GONNA GO UP.
THAT'S WHY WE ARE RECOMMENDING THAT IT BE A PASS THROUGH THAT WE CAN LOOK AT THAT COST EVERY YEAR AND THE NUMBER OF PEOPLE THAT ARE ENROLLED, AND THEN ADJUST THAT RATE AS WE NEED TO IN ORDER TO ENSURE THAT WE COVER THE COST OF THAT PROGRAM.
BUT WE'RE NOT GONNA LIMIT WHO CAN ENROLL AS LONG AS THEY, THEY'RE ELIGIBLE 125% OF POVERTY AND BELOW.
SO THE PASS THROUGH WOULD BE A STA UH, REVISITED EVERY YEAR BY YOUR BOARD, WOULD IT COME TO COUNCIL? SO TYPICALLY THE WAY A PASS THROUGH WORKS IS, UH, WE, IF THERE'S A VERY PRESCRIBED WAY TO CALCULATE IT, WE WILL, UH, BRIEF OUR BOARD.
WE WILL HAVE THE PUBLIC, UH, UTILITIES OFFICE LOOK AT THE CALCULATION.
AND AS LONG AS EVERYBODY'S HAPPY WITH IT, THEN IT WOULD GO INTO EFFECT.
UM, AT THE BEGINNING OF THE YEAR, ANY CHANGE, AND AGAIN, THAT FEE WOULD BE PAID BY PEOPLE NOT IN THAT PROGRAM.
[01:00:01]
BUT IT WOULD NOT REQUIRE APPROVAL, NOT BY, UH, THE, THE COUNCIL OR OUR BOARD.BUT WE WOULD YOUR BOARD AND WE WOULD PROBABLY APPROVE THE FORMULA OR THE EXACTLY RIGHT.
UH, SO GOING TO AFFORDABILITY AND, AND THIS TOUCHES MAYBE ON THE, ON THE LAST ITEM WE'RE GOING TO DISCUSS TODAY IS, UM, WE PUT OUR STORM WATER FEE ON YOUR, ON YOUR BILL.
AND, UH, OH, MARIA'S HEARD THIS QUESTION BEFORE
SO I, I GUESS I, I'D LIKE TO GET A SENSE OF, WHEN WE'RE TALKING ABOUT DISCONNECTS, HOW MUCH OF THAT DISCONNECT MAY BE DUE TO THE STORM WATER FEE? I WANNA KNOW WHAT SORT OF IMPACT WE'RE HAVING ON SOMEBODY NOT BEING ABLE TO PAY THEIR, THEIR SAWS BILL.
UM, SO WHEN WE GET, WHEN WE DO RECEIVE PAYMENTS, WE PROVI, WE ALLOCATE THOSE PAYMENTS TO ANY OF THE PAST TWO CHARGES.
SO WE CAN'T SAY OF THE AMOUNT OF THE A HUNDRED DOLLARS THAT THEY OWED, HOW MUCH OF THAT IS STORMWATER, BUT WE CAN GIVE YOU AN IDEA OF WHAT STORMWATER IS AS A PERCENTAGE OF THE AVERAGE BILL.
SO WHEN YOU, YOU THINK OF, IF YOU COULD, I DON'T KNOW IF I CAN GET THERE, BUT IF YOU CAN GO TO SLIDE 20, MARY, IF I, IF I MAY, MAYBE TO HELP, UM, JUST TO GIVE YOU AN ORDER OF MAGNITUDE ON THE FEE.
SO WE HAVE TWO TIERS, RESIDENTIAL AND NON-RESIDENTIAL.
THE RESIDENTIAL FEE, THE LOWEST IS $3 AND 75 CENTS PER MONTH, AND THE HIGHEST IS $10 AND 45 CENTS PER MONTH.
AND THEN FOR THE NON-RESIDENTIAL, UM, WE START AT 67 30.
AND THEN DEPENDING ON THE SQUARE FOOTAGE OF IN PREVIOUS COVERAGE, THERE IS AN AN INCREASE, UM, BETWEEN 31 CENTS TO 73 CENTS PER 1000 SQUARE FEET.
SO WE'VE ASSUMED ON THIS SLIDE, THAT SECOND TIER OF THE RESIDENTIAL, WHICH IS $4 AND 94 CENTS, UM, UM, I DON'T, YOU KNOW, AGAIN, I DON'T KNOW IN OUR AFFORDABILITY PROGRAM IF MOST OF THEM FALL IN THAT SECOND TIER, BUT WE DID THIS FOR ILLUSTRATION PURPOSES.
WHAT, I'M SORRY, MARY, WHAT DID YOU SAY? THAT THE TIER ONE WAS $3 AND, YEAH, $3 AND 75 CENTS A MONTH, AND 75 CENTS TO 10 45.
SO IF YOU LOOK AT, UM, THE, THE RECOMMENDATION FROM THE RACK FOR, UH, INSIDE CITY LIMIT CUSTOMER WITHOUT STORM WATER, THEY'RE GONNA PAY $22 AND 59 CENTS WITH STORM WATER THAT WE'VE SHOWN HERE.
$4 AND 94 CENTS COULD BE $3 AND 75 CENTS.
IF THEY'RE AT THE LOWEST TIER, COULD BE 10.
I'M SORRY, MARY, COULD YOU SOMETHING, COULD YOU JUST BE A MORE EXPLICIT WHEN YOU'RE TELLING ME WHAT BOX YOU'RE LOOKING AT? SO, OKAY, WELL, OKAY.
SO LET'S LOOK AT THE RECOMMENDATION THAT SAYS RECOMMENDATION I C L.
AND THEN LET'S GO OVER TO THE SECOND COLUMN.
AND REALLY, THE SECOND, THIRD, FOURTH AND FIFTH COLUMNS HAVE $22 AND 59 CENTS IN ALL FOUR OF THOSE COLUMNS, RIGHT? SO THAT'S UNDER THESE RACK RECOMMENDATIONS.
THAT'S WHAT A, UH, A, UH, AFFORDABILITY CUSTOMER WILL PAY FOR THAT AVERAGE BILL, RIGHT? UM, $22 AND 59 CENTS WITHOUT STORM WATER.
THEN YOU'RE GONNA LAYER THE STORM WATER ON TOP.
WE'VE LAYERED ON TO GET DOWN TO 27 52.
WE'VE LAYERED ON THE SECOND TIER, WHICH IS $4 AND 94 CENTS.
IT COULD BE 3 75, SO MAYBE THEIR BILL WON'T GO ALL THE WAY TO 27 52, BUT IT COULD ALSO BE $10 IF THEY'RE IN THE HIGHEST.
AGAIN, THE, THE, THE, THOSE TIERS ARE BASED ON HOW MUCH IMPERVIOUS COVER THEY HAVE ON THEIR PROPERTY, RIGHT? RIGHT.
UM, AND SO, SO WHEN YOU LOOK AT THAT, THEY'RE, THEY'RE PAYING, WHAT IS THAT? ABOUT 20% MORE WITH STORM WATER ON THERE.
NOW, IF YOU GO UP TO THE EXISTING, NOW THAT DEPENDS ON THEIR INCOME AND ALL OF THAT.
SO THEIR STORM WATER MAY BE A DIFFERENT PERCENTAGE OF THEIR BILL BASED ON THE DISCOUNT THAT WE'RE GIVING THEM ON THE WATER AND SEWER CHARGES.
BUT UNDER THE RECOMMENDATIONS, THE, THE STORM WATER FEE TAKES THAT BILL, UH, FOR SOMEBODY AT 50% OF POVERTY FROM JUST UNDER 2% TO JUST ABOUT 2.4%.
UH, I'LL COME BACK TO, TO THIS WHEN WE GET TO THE ARPA ITEM, BUT THANK YOU VERY MUCH, MARY.
OKAY, WE'VE, UH, DISCUSSED ITEM TWO.
NOW WE'LL GO AHEAD AND GO ON TO ITEM THREE.
THAT IS A BRIEFING BY THE SAN ANTONIO WATER SYSTEM ON THE 2022 WATER MANAGEMENT PLAN.
AND, UH, SO OH, WE'LL BE HEARING.
AND, UH, COUNCIL MEMBERS, JUST, UH, FOR THE RECORD, ALTHOUGH WE HAVE A LOT OF RESEMBLANCE, I'M NOT ROBERT R PUENTE.
SO I AM DONOVAN BURTON, UH, UH, VICE PRESIDENT WATER, MA WATER RESOURCES.
UM, SO WE'RE GONNA TALK TODAY ABOUT THE WATER MANAGEMENT PLAN.
WE DO THIS ONCE EVERY FIVE YEARS.
AND SO THIS IS, UH, WHAT IS A WATER MANAGEMENT PLAN.
IT'S THE ABILITY FOR US TO, TO, TO TOUCH BASE WITH THE PUBLIC, WITH
[01:05:01]
THE ELECTED OFFICIALS, WITH OUR BOARDS, AND MAKE SURE THAT WE'RE ALL GOING IN THE RIGHT DIRECTION IN DEVELOPING WATER SUPPLY AND, UH, WATER SUPPLIES AND MANAGEMENT TOOLS FOR OUR FUTURE, UH, POPULATION AND CUSTOMERS.UH, WE, WE GET JUST DOWN TO THE, THE NUTS AND BOLTS OF IT.
UH, THE WATER MANAGEMENT PLAN, OUR GUIDING, GUIDING PRINCIPLES.
WE LOOK AT POPULATION DEMANDS.
WE LOOK AT WHAT SUPPLIES WE HAVE ON HAND, WHAT SUPPLIES WE MIGHT NEED IN THE FUTURE, HOW WE MANAGE THOSE SUPPLIES THROUGHOUT OUR SYSTEM, UH, CONSERVATION, CLIMATE CHANGE, REGIONAL PARTNERSHIPS, AND JUST A WHOLE LOT OF OTHER, UH, GAMUT OF THINGS THAT WE LOOK THROUGH TO MAKE SURE THAT WE ARE MEETING THE CUSTOMER'S NEEDS.
UH, THIS PLAN INVOLVES A WHOLE LOT OF COMMUNITY ENGAGEMENT.
WE HAVE LOTS OF DIFFERENT MEETINGS.
UH, YOU, YOU'VE TALKED ABOUT, UH, UH, GINO'S TEAM WORKS A LOT OUT IN THE PUBLIC.
WE HAVE, UH, VIRTUAL AND IN-PERSON MEETINGS.
WE HAVE A LOT OF SOCIAL MEDIA, UM, UH, LOTS OF INDIVIDUAL ONE-ON-ONE AND GROUP TYPE, UH, DISCUSSIONS WITH, WITH ALL SORTS OF DIFFERENT STAKEHOLDERS.
SO THIS IS A VERY PUBLIC EFFORT, AND WE HAVE A LOT OF, UH, INPUT INTO THE PLAN.
UH, WE GET A LOT OF, UM, UH, FEEDBACK IN TERMS OF CONSERVATION IS A, IS IS A BIG FEEDBACK ITEM.
AND, BUT, BUT VERY, VERY, BASICALLY, PEOPLE JUST WANT TO MAKE SURE THAT WE HAVE ENOUGH SUPPLIES AND WE'RE MEETING THE DEMANDS OF THE POPULATION.
UH, THESE PLANNING EFFORTS HAVE LED US TO, TO BE ABLE TO DO SOME OF, UH, SOME AMAZING THINGS, SOME GREAT ACCOMPLISHMENTS FOR THE COMMUNITY.
UH, YOU, YOU'VE SEEN A LOT OF THESE THINGS, BUT OBVIOUSLY WE, WE, WE CALL IT THE ABCS.
I THINK MR. PUENTE CALLS IT THE ABCS OF, OF, OF WATER.
AND WE'VE ADDED A D AND AN E, AND, AND WE'LL PROBABLY KEEP GOING, BUT THE LARGEST AQUIFER STORAGE AND RECOVERY SYSTEM IN THE NATION.
THE, UH, GROUNDWATER BASED, UH, A STATE-OF-THE-ART BRACKISH, DESALINATION PLANT, UH, UH, NATION LEADING, UH, CONSERVATION PROGRAMS, OUR LARGEST DIRECT RECYCLE SYSTEM.
AND THEN THE EMPLOYEES, WE CAN HAVE ALL OF THESE ON HAND, BUT IF YOU DON'T HAVE THE RIGHT EMPLOYEES IN PLACE TO, TO MANAGE 'EM, UH, WE DON'T HAVE ANYTHING.
WE HAVE SOME AMAZING EMPLOYEES AT SAWS.
UH, THESE PLANNING EFFORTS, AS, AS YOU KNOW, HAVE LED US FOR, FOR BACK IN THE 1990S, WE HAD REALLY ONE SOLE SOURCE THAT WAS THE EDWARDS AQUIFER.
OUR ENTIRE, UM, WATER SUPPLY WAS BASED OFF OF ONE SOURCE.
SO WHATEVER HAPPENED, UH, THAT WAS, THAT WAS OUR, OUR WATER SUPPLY.
WE'VE NOW GOTTEN TO JUST OVER 50% OF, OF EDWARDS WATER AND DIVERSIFIED OUR SUPPLIES INTO NINE DIFFERENT WATER SOURCES, 15 DIFFERENT PROJECTS.
AND IT'S AMAZING, UH, UH, ACCOMPLISHMENT.
UH, THOSE SUPPLIES LEAD US TO HAVE A, UH, A VERY DIVERSIFICATION, UH, A BIG DIVERSIFICATION OFF OF THE EDWARDS, BUT IT ALSO MEANS WE HAVE A VERY COMPLEX SYSTEM.
AND THAT GOES INTO, WHEN I, WHEN WE TALK ABOUT HOW WE MOVE AND MANAGE THESE SUPPLIES, WE HAVE AN INCREDIBLY COMPLEX SYSTEM WITH 1400 FOOT OF ELEVATION DIFFERENCE BETWEEN THE NORTH AND THE SOUTH ENDS OF BEXAR COUNTY.
AND WE HAVE LOTS OF DIFFERENT PRESSURE ZONES, AND WE HAVE TO MANAGE ALL OF THESE DIFFERENT SUPPLIES AMONG THOSE PRESSURE ZONES WITH A, A TREMENDOUS AMOUNT OF REDUNDANCY BUILT INTO THE SYSTEM.
A A BIG EXAMPLE OF THAT IS JUST AN UNPLANNED, UH, WHAT ULTIMATELY WAS A LIGHTNING STRIKE SOMETIME IN, IN, IN LATE AUGUST OF THIS YEAR, UH, WE WERE GOING ALONG, WE HAD A, A LOT OF, WE HAD A VERY HIGH DEMAND PERIOD.
THIS YEAR'S BEEN, UH, PRETTY HIGH DEMAND.
AND, UH, WE HAD INSTANTANEOUS, WE HAD A, A, A, A LIGHTNING STRIKE HITS, UH, THREE DIFFERENT OIL TANKS AND TOOK OFF MORE THAN, OR RIGHT AT 25% OF OUR ENTIRE WATER SUPPLY, UM, INSTANTANEOUSLY.
AND OUR, OUR, UM, UH, EMPLOYEES WERE ABLE TO JUST TURN SOME BUTTONS AND HIT THE EASY BUTTON AND, UH, MANAGE A LOT OF DIFFERENT, UH, OTHER SUPPLIES TO REPLACE 25% OF OUR TOTAL PRODUCTION, UH, IMMEDIATELY.
THAT WAS OUT OF THE H TWO OAKS.
THAT WAS NOT THE FIRST TIME WE'VE, WE'VE DONE THIS.
UH, OTHER TIMES WE HAVE THE VISTA RIDGE PROJECT, WHICH RUNS ALONG VERY CONSISTENTLY.
IT'S, IT, IT'S BEEN RUNNING FANTASTIC OVER THE LAST TWO YEARS.
UM, BUT HERE'S ANOTHER EXAMPLE.
JUST IN THE MIDDLE OF JUNE, WE HAD A, UM, AN AIR RELEASE VALVE THAT, THAT WENT OUT AND A, A PIPELINE BREAK ON THE VISTA RIDGE, UH, PIPELINE.
WE LOST ABOUT 20% OF OUR SUPPLIES, AGAIN, OVERNIGHT, AND OUR EMPLOYEES WERE ABLE TO, UH, TO MANAGE WITH AN INSTANTANEOUS, UM, MOVEMENT, AND WE'RE ABLE TO REPLACE THAT SUPPLY.
UM, YOU ASKED ABOUT HOW VISTA RIDGE IS PERFORMING.
IT IS PERFORMING CONSISTENTLY WITH THE MODELS.
AGAIN, IT'S PERFORMING CONSISTENTLY TO WHAT OUR EXPECTATIONS WERE.
AND, AND GOING BACK TO THE, UH, LOSS OF SUPPLY IN JULY FOR OUR JUNE FOR TWO DAYS.
IT IS ALL ABOUT THE RISK SHIFTING.
THIS IS ANOTHER EXAMPLE THAT, THAT WATER THAT WE DIDN'T RECEIVE FOR THOSE TWO DAYS, WE DIDN'T HAVE TO PAY FOR.
THAT'S THE RISK SHIFTING THAT THE PRIVATE SECTOR HAS TAKEN ON WITH, TAKEN ON WITH VISTA RIDGE.
[01:10:01]
AGAIN, CLIMATE CHANGE IS A BIG PIECE OF, OF THIS, UH, EFFORT OF THIS WATER MANAGEMENT PLAN WE'VE BEEN LOOKING AT, AT CLIMATE CHANGE.IT WAS ACTUALLY FIRST APPEARED IN OUR 2009 WATER MANAGEMENT PLAN AGAIN IN 2017.
WE ADJUSTED FOR THE INTENSITY OF THE DROUGHT THAT WE SAW IN THE 2011 AND 2014, UH, TIMEFRAME.
UH, WE'RE, WE'RE TAKING THIS A LITTLE MORE, MORE INTO THE, THE, THE SCIENCE EFFORT.
WE'VE, WE'VE HAD TWO DIFFERENT CONSULTANTS LOOKING AT CLIMATE CHANGE, BOTH FROM THE IMPACTS IT'S GONNA HAVE ON OUR SUPPLIES, AND AS WELL THE IMPACT IT MIGHT HAVE ON OUR, OUR CUSTOMERS.
UM, WE ARE SEEING VARIOUS AMOUNTS OF, OF, OF RAINFALL, AND WHAT, WHAT DOES THAT MEAN FOR BEHAVIOR OF CUSTOMERS? WILL THEY, UM, UH, WILL THEY WATER MORE OR LESS? AND HOW, HOW WILL THAT IMPACT US? WHAT WILL THE RECHARGE RATES BE FOR SOME OF OUR, OUR EDWARDS SUPPLIES AND SOME OF OUR, OUR OTHER SUPPLIES? SO WE'RE LOOKING AT, UH, CLIMATE CHANGE AS A BIG PIECE OF THIS, UM, OF THIS WATER MANAGEMENT PLAN.
AGAIN, CONSERVATION IS ALWAYS, ALWAYS OUR FIRST, UH, SOURCE.
WE LIKE TO PUT THIS OUT THERE A LOT, BUT CONSERVATION IS ABSOLUTELY, UH, A CORE PIECE OF OUR WATER MANAGEMENT PLANNING.
AGAIN, WE'VE, WE'VE HAD A 50% DECREASE IN OUR PER CAPITA USE OVER THE LAST, UM, UH, 30, 40 YEARS.
UM, HAD WE NOT HAD THAT DECREASED SUPPLY, OR I'M SORRY, THAT DECREASED, UH, USE IN, IN OUR DEMAND, WE WOULD'VE NEEDED SEVERAL VISTA RIDGE PROJECTS.
AGAIN, THAT GOES BACK TO THE RATES DISCUSSION.
OUR RATES WOULD BE INCREDIBLY A LOT HIGHER.
WE WOULD'VE HAD TO HAVE OTHER PROJECTS ON BOARD AND, UM, HAD MORE IMPACTS.
SO, CONSERVATION IS A BIG PIECE OF THIS.
I THINK YOU'LL SEE A LOT OF DIFFERENT, UM, UH, THERE'S A WHOLE LOT MORE THAT WE CAN DO WITH CONSERVATION.
I KNOW YOU'VE HAD PRESENTATIONS ON A M I AND THAT SORT OF THING.
UM, WE HAVE TO MAKE SURE THAT THOSE TOOLS, WE HAVE THOSE TOOLS IN PLACE, BUT THAT WE'RE USING THEM IN A WAY THAT THAT DRIVES DOWN THE DEMAND.
UH, POPULATION PROJECTIONS, AGAIN, A A, A HUGE PIECE OF THIS, UH, WATER MANAGEMENT PLAN.
AGAIN, WE PLAN FOR THIS AND WE WATCH IT EVERY DAY.
UM, WE'RE ACTUALLY TRENDING A LOT HIGHER THAN WE WERE EVEN IN 2017.
AGAIN, WE'RE THE BUT FASTEST GROWING CITY IN THE NATION.
UM, AND WE EXPECT, YOU KNOW, 1.5 MILLION MORE PEOPLE BY OVER THE PLANNING HORIZON, UH, POTENTIALLY MORE.
AND SO WE HAVE TO PLAN FOR THAT.
UM, WE ARE PLANNING, UM, IN, IN LINE WITH SOME OF THE M P O PROJECTIONS AT THIS POINT.
AND, UM, THEN WHEN WE GET TO ABOUT THE 2040 PERIOD, WE GO TO PLAN TOWARDS THE, UH, STATE WATER, UH, WATER DEVELOPMENT BOARD AND THE STATE DEMOGRAPHER.
UH, THE NEXT STEPS ON THE PLAN, AGAIN, WE CONTINUE TO LOOK FOR COMMUNITY ENGAGEMENT.
WE, UH, HAVING, HAVING THESE BRIEFINGS AND BRIEFINGS WITH OUR BOARD, WE'LL HAVE A DRAFT PLAN COMING OUT PROBABLY IN ABOUT A MONTH AND A HALF.
AND WE WILL, UH, PUT THAT OUT TO THE PUBLIC FOR 30 TO 45 DAYS AND GET LOTS OF, UM, UH, COMMENTS IN IT.
WE'LL MAKE SURE THAT THE COMMENTS THAT WE HAVE RECEIVED UP TO DATE AND THE COMMENTS THAT WE RECEIVE AFTERWARDS ARE INCORPORATED INTO THE PLAN, OR AT LEAST AT VERY LEAST ADDRESSED, UM, UH, IN THE PLAN.
UH, WE'LL HAVE SAS BOARD APPROVAL.
WE WERE TRYING TO GET THAT DONE BY THE END OF THE YEAR.
IT MIGHT PUSH OFF INTO, UM, JANUARY, FEBRUARY TIMEFRAME, JUST DEPENDING ON HOW THE PUBLIC, UH, COMMENT PERIOD GOES.
WE OBVIOUSLY DON'T WANNA SHORTCHANGE ANY OF THE PUBLIC COMMENT PERIOD, BUT THAT'S HOW THE, THE, THE STEPS WILL BE.
WE ENCOURAGE, YOU KNOW, OBVIOUSLY, UH, YOUR FEEDBACK AND FEEDBACK OF, OF YOUR CONSTITUENTS.
I THINK WE HAVE BEEN IN A NUMBER OF NEIGHBORHOOD, UH, MEETINGS IN SOME OF YOUR DISTRICTS AND, AND WE'LL, UH, COME IF, UH, UPON INVITATION.
SO THAT'S THE BASICS OF THE WATER MANAGEMENT PLAN.
I'LL ASK ANY, ANY QUESTIONS ON IT.
AGAIN, WE CAN GET INTO THE SPECIFICS WHEN THE PLAN COMES OUT, BUT, BUT, UM, WE'RE, WE'RE DOING A LOT OF DISCUSSION ON IT RIGHT NOW.
UH, AND I WANNA ACKNOWLEDGE THE PRESENCE OF, UH, THE C E O.
UH, THANK YOU ROBERT PUENTE FOR BEING HERE TODAY.
DO YOU WANT TO ADD ANYTHING ABOUT THE PLAN? UM, NO.
UH, DONALD WAS SUPPOSED TO BE ON VACATION.
BUT, UH, SOME HURRICANE MADE HIM COME BACK.
UH, I HAVE, UH, ONE OR TWO, UH, QUESTIONS I MIGHT ASK, UH, ON, UM, I'M TRYING TO LOOK AT THE PAGE NUMBER, BUT IT LISTS, UH, DIVERSIFICATION LONG-TERM WATER SUPPLY PLANNING.
YOU LIST ABOUT 13 DIFFERENT, I GUESS YOU COULD SAY, UH, RESOURCES THAT WE HAVE AVAILABLE TODAY.
AND I'VE, I'VE OFTEN HEARD TALK ABOUT SOME OF THESE RESOURCES MAYBE NOT BEING VERY PRODUCTIVE, OR A FEAR THAT THEY MAY NOT BE PRODUCTIVE DOWN THE LINE, OR MAYBE THEY DON'T WANT TO CONTINUE OUR PARTNERSHIP.
[01:15:01]
THE LIKELIHOOD OF MAINTAINING THE KIND OF INPUT FROM THESE RESOURCES? OR ARE THERE OTHERS THAT CAN TAKE THEIR PLACE IF SOME DROP OFF OR WE DON'T RENEW A CONTRACT? YEAH, THIS IS EXACTLY WHAT WE, WHAT WE PLAN FOR.UM, AND I THINK WE HAVE A, A BACKUP SLIDE.
LET ME SEE IF I CAN GET TO IT.
UM, THERE IS A BACKUP SLIDE THAT TALKS ABOUT OUR, OUR, UM, CONTRACTED SUPPLIES.
UM, SOMEBODY, WHOEVER'S RUNNING THAT, IF YOU CAN GO TO THE BACKUP SLIDES, UM, WE WILL BE ABLE TO MAINTAIN A LOT OF DIFFERENT DIVERSE SUPPLIES ON HAND.
UM, SO WE HAVE, AGAIN, 15 DIFFERENT WATER PROJECTS.
UM, MOST OF THOSE WE WILL BE ABLE TO CONTINUE.
THERE ARE SOME OF THEM THAT WILL FALL OFF.
FOR EXAMPLE, WE HAVE THE G B R A, THE CANYON LAKE WATER SUPPLY, AND THAT IS 20, UH, THAT ENDS IN 2037.
WE'VE TALKED TO G B R A AND I THINK THEY WANT TO BRING THAT WATER BACK INTO BASIN.
THEY HAVE A LOT OF DEMAND FOR THAT.
AND SO WE PLAN FOR THAT SUPPLY TO GO AWAY IN 2037.
UH, WE HAVE THE TRINITY AQUIFER WATER SUPPLIES.
WE HAVE ONE THAT'S CALLED, UH, UH, TEXAS WATER SUPPLY.
WE REFER TO IT AS WCO, IS WE HAVE A NUMBER OF BARE MET SUPPLIES THAT, THAT, UH, AREN'T FUNCTIONING AS WELL AS SOME OF THE OTHERS.
I THINK YOU'VE, YOU'VE SEEN PICTURES OF MEDINA LAKE, WHICH IS PRETTY MUCH EMPTY.
UH, THAT WAS A BIG WATER SUPPLY FOR THE, UH, FOR, FOR BARE MET.
ALL OF THOSE SUPPLIES THAT GO AWAY, WE EITHER, UM, PLAN TO CONTINUE THEM IF THEY ARE WORKING WELL OR WE PLAN FOR THEM TO GO AWAY.
I DON'T HAVE THE, THE, THE BACKUP SLIDE, BUT, UM, UH, WE CAN CERTAINLY GET YOU THE, THE, THOSE SUPPLIES.
ALL HAVE DIFFERENT YEARS WHERE THEY GO OFF OF THE SYSTEM.
I UNDERSTAND THE EFFICIENCY AND THE EFFECTIVENESS OF THE BRACKISH WATER PLANT, THE DESAL PLANT.
UH, IS THERE A LIKELIHOOD THAT WE COULD ADD THE SECOND COMPONENT TO THAT? I'VE BEEN THERE AND I KNOW WE'VE GOT ONE IN PLACE PLACE.
UH, WHAT WOULD BE THE LONG-TERM COST AND WHAT WOULD BE THE LONG-TERM ADDITIONAL BENEFIT OF ADDING THAT IN? YEAH, SO THAT IS OUR, OUR, OUR PLAN.
WE WILL BRING THE BRACKISH DESALINATION PHASE TWO.
WE CALL IT PHASE TWO AND THREE, UH, WHICH WILL ULTIMATELY GET US TO ABOUT 33,000 ACRE FEET.
UH, RIGHT NOW IT'S ABOUT 11,000 ACRE FEET, UH, CAPACITY.
UH, WE'RE GONNA BRING THOSE IN WHENEVER THE NEXT, UM, THE NEXT GAP HAPPENS WHENEVER THE NEXT SUPPLY GAP HAPPENS, WHICH WILL PROBABLY BE AROUND THE 2040 TIMEFRAME.
AND, UH, WE, WE ARE, THE, THE BEAUTY OF IT IS THAT WE'RE ALREADY PLUMBED FOR IT.
THE, THE, UM, AS YOU'VE PROBABLY SEEN AT THE PLANT, IT IS READY TO GO.
IT'S KIND OF PLUG AND PLAY AT THIS POINT.
YOU CAN PLUG SOME MEMBRANES IN.
WE CAN, WE, WE'VE ALREADY GOT IT ALL PLUMBED AND READY TO GO.
WE WILL HAVE TO DRAW, UH, DRILL SOME NEW WELLS.
WE MIGHT HAVE TO GET PERMITTING AND THAT SORT OF THING, THAT, UH, BE SOME DISCUSSION WITH THE GROUNDWATER DISTRICTS.
BUT WE DO HAVE THAT PLANNED FOR EXPANSION.
IN TERMS OF COST, RIGHT NOW, THE, UH, THE BRACKISH DESAL PLANT IS ABOUT 1800, UH, DOLLARS A AN ACRE FOOT.
AS WE ADD MORE TO IT, WE CAN TAKE SORT OF ECONOMIES OF SCALE, AND IT'LL REDUCE THAT SIGNIFICANTLY, PROBABLY AROUND THE 12 TO 1300, UH, DOLLARS AN ACRE FOOT.
UM, YOU KNOW, I, I COMMENTED WHEN I MET WITH, UH, YOUR STAFF A FEW DAYS AGO, UH, THAT I WAS NEVER MUCH OF A SUPPORTER OF VISTA RIDGE.
BUT I HAVE TO SAY, UH, I LEARNED MY LESSON WITH THE KIND OF WEATHER THAT WE EXPERIENCED THIS YEAR, THE VALUE OF HAVING THAT RESOURCE AVAILABLE.
UH, YOU KNOW, YOU TALKED ABOUT THE EXPLOSION THAT OCCURRED OVER AT H TWO OAKS AND HOW YOU LOST 25% AVAILABILITY FOR A SHORT PERIOD OF TIME.
UH, I'M SURE VISTA RIDGE PLAYED A ROLE IN BEING ABLE TO, YOU KNOW, ADD TO WHAT NEEDED TO BE OUT THERE IN THE SYSTEM.
UM, BUT, UH, I DO WANNA ASK A CLARIFYING QUESTION.
YOU SAID THERE WAS A BRI, UH, A VISTA RIDGE, UH, BREAK LOST WATER FOR TWO DAYS.
YOU SAID THEY DIDN'T, THEY DIDN'T GET PAID FOR THAT.
BUT ISN'T IT TRUE THAT THEY CAN ALWAYS PROVIDE IT LATER AND YOU WOULD HAVE TO PAY THEM FOR WHATEVER WAS LOST? YES.
THAT, THAT, THAT IS THE, THE, THE RISK SHIFTING.
SO THEY, THEY DO NOT GET PAID IMMEDIATELY, AND THEN IN THE FUTURE, THEY CAN MAKE THAT WATER UP AND GET PAID FOR IT AT THAT TIME, UP TO A CERTAIN AMOUNT.
WE PUT A BLOCK IN EVERY, UH, YEAR THAT THEY CAN MAKE UP AN ADDITIONAL UP TO 3000 ACRE FEET TO MAKE UP FOR ANY OF THOSE LOSSES THAT THEY'VE LOST DURING THE PERIOD.
BUT WE, THAT IS, WE, WE WILL ACTUALLY GET THE WATER, WE'LL PHYSICALLY GET THE WATER.
IF THEY CAN'T PROVIDE IT AT THAT TIME.
AND THERE HAVE BEEN TIMES WHERE IT'S BEEN DIFFICULT, UM, WE DON'T HAVE TO PAY FOR IT.
WE ONLY PAY FOR WATER RECEIVED.
I KNOW, UH, AUGUST HAS BEEN BETTER THAN MAY, JUNE AND JULY,
[01:20:01]
BUT ARE WE HEARING ANY, UH, WORDS OF CAUTION FROM THE ORIGINATION OF THAT WATER IN THOSE COUNTIES NORTH OF US, ABOUT THE POSSIBILITY OF ACTIONS BEING TAKEN THAT COULD LIMIT THE AVAILABILITY OF WATER TO US? SO WE'VE HAD A LOT OF DISCUSSIONS WITH, WITH THE GROUNDWATER DISTRICT.THE AQUIFERS ARE COMPLETELY DIFFERENT.
FOR EXAMPLE, EDWARDS AQUIFER, YOU MENTIONED DURING DROUGHT, EDWARDS AQUIFER IS MUCH MORE SUSCEPTIBLE TO SORT OF IMMEDIATE DROUGHT CONDITIONS, WHEREAS THE, UH, SIMSBORO AND THE, UH, CARRIZO AQUIFER IN THAT AREA IS MORE ABOUT LONGER TERM DRAWDOWN.
AND SO THEY MANAGE TO WHAT ARE CALLED THE, THE DFCS DESIRED FUTURE CONDITIONS.
AND SO THEY WANNA MAKE SURE THAT, UM, OVER TIME, THE AQUIFER CONDITIONS IN THAT PARTICULAR AREA MEET THE, UH, THE EXPANDING GROWTH IN THEIR PARTICULAR AREA.
UM, AND SO THEY HAVE GONE THROUGH DIFFERENT ROUNDS OF THE D F C PROCESS.
THEY JUST WENT THROUGH ANOTHER ONE.
THE GROUNDWATER DISTRICT HAS SAID, WE DON'T SEE A NEED FOR CURTAILMENT OF ANY SORT, AT LEAST IN THE, IN THE IMMEDIATE TIMEFRAME AS INCREASED, UM, DEMAND HAPPENS IN THAT AREA, THERE COULD BE SOME CALL FOR REDUCTIONS IN SUPPLY, PARTICULARLY IN THAT AREA.
THAT'LL BE A CONVERSATION THAT WE AND OTHERS WILL HAVE WITH THEM.
THAT'S NOT JUST SPECIFIC TO VISTA RIDGE.
THEY HAVE TO APPLY CURTAILMENT ACROSS THE BOARD WHEN THEY DO THAT.
AND SO THERE ARE A WHOLE LOT OF PEOPLE THAT WILL, WILL, UH, UH, BE INVOLVED IN THAT DISCUSSION, SHOULD THAT HAPPEN.
THE, SOME OF THE, WE'VE, WE, YOU MAY HAVE HEARD SOME, UH, COMMENTS ABOUT IT RECENTLY AND MORE.
IT'S BEEN ABOUT, UM, LOCAL IMPACTS ON LOCAL WELLS.
SO IF YOU'RE CLOSE TO ONE OF THE HIGHER PRODUCTION WELLS, YOU MIGHT GET IMPACT.
IT'S LESS ABOUT THE AQUIFER IN TOTAL.
UM, AND THE GROUNDWATER DISTRICT HAS A, UH, A, A CONSERVATION PROGRAM, SORT OF A MITIGATION PROGRAM TO DEAL WITH THAT.
AND THEY'VE DEALT WITH ABOUT 97 VARIOUS WELLS WHERE THEY CAN LOWER THE PUMPS.
AND SO IT KEEPS THEM, UH, WITHIN THE WATER TABLE.
WELL, THOSE ARE ALL MY QUESTIONS.
I'LL OPEN IT UP TO ANY OF THE, UH, OTHER COMMITTEE MEMBERS THAT MAY HAVE A QUESTION.
I JUST HAVE COUNCILWOMAN R GARCIA.
THANK YOU FOR, FOR THE 50 YEAR PLAN.
WE USUALLY THINK IN TERMS OF FIVE AND 10 YEARS.
UM, AND THEN JUST QUICK, HOW DO YOU PLAN TO GET, I KNOW I SAW THE LIST OF THE ENGAGEMENT, BUT SPECIFICALLY, HOW LONG ARE YOU GONNA BE SEEKING FOR RESIDENTS TO GIVE YOU FEEDBACK ON THE PLAN? UH, SO WE'VE BEEN DOING IT SINCE ABOUT MARCH, AND WE CONTINUE TO DO THAT.
AND WE HAVE LOTS OF DIFFERENT, UH, MEETINGS ALREADY CONTINUE ON THE SCHEDULE.
AS SOON AS WE COME OUT WITH THE DRAFT PLAN, I THINK WE'RE GONNA HAVE A 45 DAY PERIOD OKAY.
OF, UH, SORT OF MORE FORMALIZED COMMENT OF, UH, OF THAT, AND THEN TAKE THAT TO OUR BOARD, INCORPORATE THAT INTO IT.
SO THAT'S HOW LONG THAT WILL, WILL BE.
ANY OTHER QUESTIONS FROM OTHER COMMITTEE MEMBERS? NO.
THE NEXT ITEM WE HAVE, ITEM FOUR IS, UH, A BRIEFING, UH, FROM SAS ON THE STATUS OF CUSTOMER DELINQUENCIES.
AND, AND, UH, I'D LIKE TO KNOW ALSO, LIKE WHAT KIND OF SHUTOFFS HAVE BEEN DONE AND THINGS OF THAT NATURE, IF THAT DISCUSSION.
SO THIS WILL BE MUCH QUICKER THAN MY PREVIOUS PRESENTATION.
UM, UH, SO AS YOU, AS YOU KNOW, UH, OUR CUSTOMER DELINQUENCIES, UM, GREW DURING THE PANDEMIC AS WE STOPPED DISCONNECTIONS FOR ABOUT 18 MONTHS.
AND, UM, AND SO I WANTED TO GIVE YOU AN UPDATE ON WHERE WE ARE TODAY.
UH, WE HAVE SEEN, UH, SOME IMPROVEMENT.
UM, AND WHILE WE'RE NOT BACK DOWN TO WHERE WE WERE PRIOR TO THE PANDEMIC, UH, WE ARE SEEING A KIND OF RETURN TO, UM, A NORMAL, IF YOU WILL, THAT OUR DELINQUENCIES ARE, ARE DECLINING AND THEY'RE NOT GROWING, WHICH IS, IS A GOOD THING.
SO WHAT THIS SLIDE SHOWS IS BASICALLY ALL OF OUR DELINQUENT BALANCES BY THE DIFFERENT AGING CATEGORIES, 30 DAYS PAST DUE, 60 DAYS, 90 DAYS, TYPICAL KIND OF ACCOUNTING APPROACH TO LOOKING AT CUSTOMER RECEIVABLES.
AND THE, THE FAR LEFT SHOWS WHERE WE WERE IN AUGUST OF 2019, WHICH WAS PRIOR TO THE PANDEMIC, WE HAD, UM, A TOTAL DELINQUENT BALANCES OF ABOUT $12.6 MILLION.
AND YOU CAN SEE THE BULK OF THOSE WERE IN THE 30 DAY CATEGORY.
UM, NOW LET'S MOVE A YEAR LATER TO AUGUST OF 2020.
UM, WE HAD BEEN IN THE PANDEMIC ABOUT SIX MONTHS AT THAT POINT.
AND THOSE DELINQUENT BALANCES, UH, GREW TO $28.2 MILLION.
AND NOW YOU'RE STARTING TO SEE A BIG CHUNK IN THAT MORE THAN 120 DAY CATEGORY.
ANOTHER YEAR GOES BY AUGUST OF 2021.
UH, WE, UH, HAD NOT RESUMED ANY DISCONNECTIONS, BUT WE WERE TALKING ABOUT DOING SO IN THE NEXT FEW MONTHS.
UM, AND AT THAT POINT, UH, THE DELINQUENT BALANCES
[01:25:01]
HAD GROWN TO $53.7 MILLION.AND, AND AGAIN, THAT LARGEST CATEGORY WERE THOSE ONES MORE THAN 120 DAYS PAST DUE JUST AFTER AUGUST.
OUR BOARD APPROVED OUR C OVID 19 RELIEF PLAN, WHICH, UH, DIRECTED STAFF TO BEGIN ONE RESUMING DISCONNECTIONS, BUT ALSO, UM, LOOKING AT, UH, AUTOMATICALLY ENROLLING CUSTOMERS AND PAYMENT PLANS.
UM, AND SO WHERE DO WE STAND TODAY? UM, AS OF AUGUST, THE END OF AUGUST OF 2022, YOU CAN SEE A PRETTY GOOD REDUCTION.
UH, WE ARE, OUR DELINQUENT BALANCES ARE NOW JUST UNDER $40 MILLION, UM, WHICH IS DOWN 30% FROM THE HIGH.
THAT WOULD BE SEPTEMBER OF 2021.
WE'VE GOT ALL THE WAY UP TO $56 MILLION.
SO WE'RE DOWN 30%, STILL PRETTY GOOD, UH, BUNCH OF, UH, UH, RECEIVABLES SITTING IN THAT 120 DAY CATEGORY.
UM, BUT WE ARE DEFINITELY MAKING PROGRESS.
AND, UM, AND SO I'LL GIVE YOU A COUPLE OF, UM, UH, REASONS WHY THAT, THE, THE, THAT THE NUMBERS HAVE IMPROVED.
SO FIRST AND FOREMOST, UM, OUR CUSTOMERS ARE, ARE, ARE PAYING US AGAIN.
UM, THEY MAY NOT BE NECESSARILY PAYING ALL OF THEIR DELINQUENT BALANCES, BUT THEY ARE PAYING US.
AND, AND THAT'S REPRESENTED BY JUST THROUGH THE END OF, UH, I THINK THIS IS ABOUT THE MIDDLE OF SEPTEMBER, OUR RECEIPTS, THE, THE, THE, THE CASH THAT WE'RE BRINGING IN, UM, IS $72 MILLION OR 14% HIGHER THAN THE PREVIOUS YEAR.
NOW, THIS HAS BEEN A DRY YEAR, HOT YEAR.
SOME WATER BILLS ARE HIGHER THAN NORMAL, SO SOME OF THAT'S CAUSED SOME OF THAT INCREASE IN RECEIPTS.
BUT A LOT OF IT IS JUST BECAUSE PEOPLE ARE PAYING US THAT WEREN'T PAYING US BEFORE, AND THEY ARE STARTING TO WHITTLE DOWN THOSE PAST DUE BALANCES.
WE'VE ALSO BEEN ABLE TO APPLY ARPA ASSISTANCE.
SO, UH, WE'VE PROVIDED, UH, THAT AGAIN, AMERICAN RESCUE, UH, PLAN ACT FUND THAT THE CITY PROVIDED UP TO $10 MILLION FOR SAS CUSTOMERS.
UM, WE'VE PROVIDED A LITTLE OVER $8.4 MILLION TO 16,000 CUSTOMERS, UM, AND ARE CONTINUING TO, TO ACCEPT APPLICATIONS AND DO THAT.
UM, AND THEN I ALSO MENTIONED THE C OVID 19 RELIEF PLAN THAT THE SAWS BOARD APPROVED.
UH, WE, THEY APPROVED AN EXPANDED LEAK ADJUSTMENT WHERE IF SOMEBODY HAD A LEAK DURING THE PANDEMIC, UM, AND MAYBE THAT LEAK WENT ON FOR QUITE SOME TIME, OUR NORMAL POLICY WOULD BE ONLY TO GIVE THEM A TWO MONTH CREDIT.
WE WOULD, WE'LL, THE BOARD APPROVED US GIVING THEM A, A CREDIT FOR THE ENTIRE TIME OF THE LEAK AS LONG AS THE LEAK WAS REPAIRED.
AND WHEREAS WE MIGHT'VE ONLY PROVIDED 25% OF THAT INCREASE BILL, WE WOULD PROVIDE A HUNDRED PERCENT OF THE INCREASE ASSOCIATED WITH THE LEAK.
AGAIN, AS LONG AS THE LEAK WAS REPAIRED, OVER A THOUSAND CUSTOMERS TOOK ADVANTAGE OF THAT PROGRAM.
AND WE PROVIDED, UM, $1.8 MILLION OF BILL REDUCTIONS.
SO, SO, UH, THAT WAS VERY SUCCESSFUL.
WE ALSO ENROLLED, UM, OUR CUSTOMERS, UH, THAT WERE NOT IN OUR AFFORDABILITY PROGRAM IN AN INCENTIVE, UH, PAYMENT PLAN WHERE IF THEY WOULD PAY FOR 18 MONTHS, WE PUT 'EM IN A 48 MONTH PAYMENT PLAN.
IF THEY WOULD PAY FOR 18 MONTHS, UM, THEIR CURRENT BILL PLUS THAT SMALL PORTION OF THEIR PAST DUE BILL, WE WOULD, UM, GO AHEAD AND WIPE OUT THE REST OF THAT BALANCE.
UM, WE SAID 18 MONTHS, OR YOU PAY 37.5% OF YOUR OUT YOUR PAST DUE BALANCE, AND WE'VE HAD OVER 7,500 CUSTOMERS TAKE ADVANTAGE OF THAT, AND WE'VE WRITTEN OFF $2.3 MILLION, UM, ASSOCIATED WITH THAT.
SO ALL OF THOSE HAVE HELPED TO BRING THOSE NUMBERS DOWN.
UM, BUT, UH, THAT'S BEEN, IT'S BEEN VERY HELPFUL.
AND I DO THINK, LIKE I SAID, THAT CUSTOMERS HAVE GOTTEN THE, THE MESSAGE THAT, UM, WE'RE THERE TO HELP THEM, BUT THAT THEY DO NEED TO PAY, UM, FOR THEIR WATER BILLS.
UM, SO WHERE DO WE GO NEXT? ARPA? UH, IS THERE STILL MONEY AVAILABLE? AGAIN, I MENTIONED THAT THE COUNCIL ALLOCATED 10 MILLION TO SAWS.
WE'VE USED 8.4, THERE'S $1.6 MILLION LEFT.
THAT AGREEMENT WAS, UH, SCHEDULED TO EXPIRE AT THE END OF SEPTEMBER, SO FRIDAY.
BUT WE HAVE BEEN WORKING WITH STAFF AND THEY HAVE AGREED TO EXTEND THAT, UM, PROGRAM THROUGH THE END OF THIS YEAR.
SO WE WILL CONTINUE TO ACCEPT APPLICATIONS.
UM, THEY, IT'S A FAIRLY EASY PROCESS TO GO OUT ON SSS.ORG.
AS YOU KNOW, THE, PROBABLY THE BIGGEST PIECE OF THAT, OF THE 8.4 THAT WE WERE ABLE TO, UM, ALLOCATE TO OUR CUSTOMERS AND PROVIDE DIRECT ASSISTANCE TO THEM, HAD A LOT TO DO WITH THE, UH, COUNCIL'S APPROVAL AND, AND STAFF'S APPROVAL OF AUTOMATICALLY QUALIFYING FOLKS IN QUALIFIED CENSUS TRACK.
SO THAT REALLY HELPED QUITE A BIT, AND I APPRECIATE, UM, ANY SUPPORT THAT Y'ALL WERE ABLE TO PROVIDE THERE.
UM, SO THERE'S BEEN SOME LOW INCOME HOUSING, WATER ASSISTANCE PROGRAM FUNDS THAT, UM, THE FEDERAL GOVERNMENT ALLOCATED IN SOME OF THE COVID RELIEF BILLS.
UM, THE BEXAR COUNTY HAS RECEIVED A PORTION OF THAT MONEY TO DISTRIBUTE, UM, TO QUALIFYING AND ELIGIBLE CUSTOMERS, UH, TO BE ELIGIBLE, THEY JUST MUST BE RESIDE IN BEXAR COUNTY, AND THEY CAN BE AT 150% OF POVERTY OR BELOW.
[01:30:01]
KIND OF GETTING STARTED.UM, AND HOPEFULLY WE WILL START SEEING SOME, UM, UH, A LOT OF MORE CUSTOMERS THAT ARE, THAT ARE APPLYING.
THEY DO HAVE TO GO OUT TO BEXAR COUNTY'S WEBSITE TO APPLY.
BUT, UH, UH, HOPEFULLY WE WILL BE ABLE TO DEAL WITH SOME OF THOSE PAST DUE BALANCES WITH THIS, WITH THESE FUNDS THAT ARE AVAILABLE.
AS WELL AS, YOU KNOW, THE ARPA MONEY IS ONLY FOR FOLKS THAT LIVE INSIDE THE CITY LIMITS.
SO THIS LWOP MONEY WILL HELP FOR CUSTOMERS THAT, UM, ARE SAWS CUSTOMERS, BUT THAT DO NOT LIVE INSIDE CITY OF LIMITS, BUT EVEN INSIDE CITY LIMITS CUSTOMERS ARE ELIGIBLE FOR, FOR THIS MONEY.
UM, IN TERMS OF, I DON'T HAVE A SLIDE ON DISCONNECTIONS.
UH, WE ARE DOING DISCONNECTIONS.
WE'RE DOING SOMEWHERE BETWEEN, UM, I'D SAY 300 OR SO A DAY.
UM, BUT LET ME TELL YOU WHAT HAPPENS BEFORE WE DO A DISCONNECTION, UM, ABOUT A WEEK PRIOR, UH, WE IDENTIFY THE CUSTOMERS THAT WE'RE GONNA BE, BE SHUTTING OFF, AND WE, WE DO A ROBO DIAL, WE DO AN AUTOMATIC DIALER TO THOSE CUSTOMERS, GIVING THEM BASICALLY A HEADS UP, YOU'RE, YOU GOT A WEEK, WE'RE GONNA, WE'RE GONNA BE OUT THERE, CALL US, WORK WITH US.
WE'LL, WE'LL, WE'LL, YOU KNOW, TRY TO AVOID THE DISCONNECTION.
MORE THAN TWO THIRDS OF CUSTOMERS DO EXACTLY THAT.
SO WE DON'T ACTUALLY GET OUT AND TURN THEM OFF.
UH, THEY, UM, FOR THOSE THAT WE DO WIND UP TURNING OFF, SOMETIMES THAT'S WHAT IT TAKES TO, MAYBE THEY'RE NOT, YOU KNOW, GETTING THE CALL OR WHATEVER.
UM, TWO THIRDS OF THOSE CUSTOMERS ARE GETTING TURNED BACK ON, UM, BECAUSE THEY'RE, YOU KNOW, ENTERING INTO A PAYMENT PLAN OR THEY'RE MAKING A PAYMENT.
THE, SO THE ONE THIRD OF THE CUSTOMERS THAT ACTUALLY GET TURNED OFF, UM, WHICH IS, UH, ONLY 11%, IF YOU WILL, OF EVERYBODY THAT COULD HAVE BEEN ELIGIBLE, UM, THEY DON'T GET TURNED BACK ON.
UM, WHY THEY DON'T GET TURNED BACK ON, I DON'T KNOW, MAYBE THEY MOVED.
UM, MAYBE, UM, THAT, THAT LIKELY IS THE SCENARIO.
UM, BUT BY AND LARGE, UH, YOU KNOW, OUR, OUR, OUR GOAL IS TO KEEP THE WATER ON IS TO WORK WITH THEM.
AND WE ARE STILL WORKING, WE ARE STILL PROVIDING, UM, LONG PAYMENT PLANS, UM, AND, UM, WITH THE IDEA OF, OF TRYING TO GET FOLKS, UH, CAUGHT UP OVER TIME.
SO, AGAIN, IT'LL TAKE A WHILE, BUT, UM, WE WILL GET THERE, UM, EVENTUALLY, I THINK WE'LL GET BACK TO NORMAL AT SOME POINT.
NO, IT'S, IT'S BOTH COMMERCIAL AND RESIDENTIAL.
UM, WE GO, WE DO DISCONNECTIONS IN AREAS.
YOU KNOW, WE GO THROUGH THE, TO THE TOWN, UM, IN DIFFERENT AREAS EACH DAY.
AND, UM, AND WE DON'T DIFFERENTIATE.
UM, IF YOU'RE ELIGIBLE, YOU'RE ELIGIBLE.
AND, UM, AND SO AGAIN, THEY GET THE SAME OUTREACH THAT WE PROVIDE TO THE RESIDENTIAL.
UM, WE DON'T HAVE AS MANY DELINQUENCIES AS WITH COMMERCIAL NOW AS WE DO WITH RESIDENTIAL.
UM, SO BY THE VAST SHEER NUMBERS, THERE'S MORE, THERE'S MORE RESIDENTIAL CUSTOMERS THAT COMMERCIAL, BUT IT'S NOT BECAUSE WE'RE TARGETING RESIDENTIAL AND NOT TARGETING, UH, COMMERCIAL.
BUT I WOULD THINK COMMERCIAL BILLS ARE A LOT HIGHER THAN RESIDENTIAL BILLS FOR WHAT'S OWED.
UM, AND, UM, BUT I THINK THAT A LOT OF THOSE, UM, HAVE, HAVE MADE ARRANGEMENTS.
UM, AND SO IF YOU'RE IN A PAYMENT PLAN, YOU'RE NOT GONNA GET DISCONNECTED.
I'LL OPEN IT UP FOR ANY QUESTIONS BY COUNCIL MEMBERS.
UH, COUNCILMAN ROCHA GARCIA, THANK YOU CHAIR.
AND THANK YOU, MARY, AGAIN FOR THE PRESENTATION.
SO, SPECIFICALLY THE EXTENSION IS TO, TO GET SOME ADDITIONAL, UH, TIME FOR PEOPLE TO APPLY MM-HMM.
AND THEN WHAT DOES YOUR UPLIFT BUDGET LOOK LIKE? SO FOR, UM, THE DISCOUNT PROGRAM OR FOR, UH, PROJECT AWA? FOR PROJECT AWA? SO PROJECT AWA IS, IS, AGAIN, ONE TIME ASSISTANCE.
SO IF SOMEBODY'S HAVING STRUGGLING, AND, UH, OUR BUDGET SAUCE CONTRIBUTES TO 400,000 TO THAT.
UM, EVERY YEAR, AGAIN, WE ALSO ACCEPT DONATIONS.
UM, AND I'M NOT SURE ARE WE, WE'RE PRETTY MUCH ON TRACK TO SPEND ALL OF THAT THIS YEAR.
AND SO, YOU KNOW, THEY'RE ELIGIBLE FOR THESE PAYMENTS, UH, QUARTERLY OR SEMI-ANNUAL.
AND SO A LOT OF CUSTOMERS THAT HAVE BECOME DELINQUENT, IF THEY'RE IN OUR AFFORDABILITY PROGRAM, WE, WE HAVE APPLIED PROJECT AWA, UM, ASSISTANCE AS WELL.
UM, IS, IS THE ASSISTANCE THAT THEY CAN GET.
AND ON THAT END, DO YOU ALSO DO AUTOMATIC QUALIFICATION FOR THAT OR NO? SO, UH, THEY'RE, IF THEY'RE IN OUR AFFORDABILITY PROGRAM, THEY'RE AUTOMATICALLY QUALIFIED FOR PROJECT AWA.
UM, WE DON'T DO AUTOMATIC QUALIFICATIONS FOR OUR AFFORDABILITY PROGRAM, BUT IT IS A FAIRLY EASY PROCESS.
IT'S A FAIRLY SIMPLE ONLINE QUESTIONNAIRE, UM, WHERE THEY, UH, CAN,
[01:35:01]
UM, JUST PROVIDE SOME INFORMATION ABOUT THEIR INCOME LEVELS, AND THEN WE DO SOME BACKEND, UH, VALIDATION OF THAT.AND I APPRECIATE THE EXTENSION ON THE LEAK REPAIRS.
ON AVERAGE, HOW, HOW MANY MONTHS IS IT THAT CUSTOMERS HAVE LEAKS? WELL, UM, SO WE, THIS, THAT PROGRAM IS OVER NOW BECAUSE WE WERE ALREADY, YOU KNOW, QUITE A BIT PAST.
UM, THE, WHEN WE CUT IT, WE, WE BASICALLY SAID ANY LEAKS HAPPENING BEFORE JUNE OF 2021.
BUT SOME, YOU KNOW, ON AVERAGE, CUSTOMERS GET THEIR LEAKS REPAIRED FAIRLY QUICKLY.
I DON'T KNOW WHAT HAPPENED DURING THE PANDEMIC, BUT I THINK PEOPLE KNEW THEY COULDN'T PAY THEIR WATER BILL AND THEY DIDN'T OPEN IT.
AND MAYBE THEY DIDN'T REALIZE THAT THEY
AND SO WE PROVIDED ADJUSTMENTS TO FOLKS.
SO THAT LEAK WENT ON FOR 8, 9, 10 MONTHS.
UM, AND AS LONG AS THEY REPAIRED IT, WE WOULD GO AHEAD AND GIVE THEM THE ADJUSTMENT.
SO I THINK THAT WAS, UM, HUGELY, UH, SUCCESSFUL WITH THOSE FOLKS.
'CAUSE THEY NEVER WOULD'VE BEEN ABLE TO, TO PROBABLY COME UP WITH THE, I I, I LOOKED AT ONE WHERE THEY WERE GETTING FOR ALMOST TWO YEARS, THEY WERE GETTING A BILL OF OVER A THOUSAND DOLLARS A MONTH.
AND, UM, UM, SO THAT, YOU KNOW, I DON'T, LIKE I SAID, I DON'T KNOW IF THEY JUST DIDN'T WANNA OPEN THE BILL.
UM, BUT, UH, UH, 'CAUSE USUALLY WHAT'LL HAPPEN IS SOMEBODY WILL GET A HIGH BILL, REALIZE THAT THERE MUST BE A LEAK AND THEN, AND THEN DEAL WITH IT.
BUT I THINK A LOT OF FOLKS JUST WEREN'T, WEREN'T DEALING WITH IT.
AND HOW DID THE 1000, UH, COMPARE TO OTHER YEARS? 'CAUSE I KNOW YOU SAID 1000 BENEFITED FROM THE 1.8.
SO TO NORMALLY, YOU KNOW, WE GIVE LEAK ADJUSTMENTS JUST NORMALLY.
UM, AND, BUT AGAIN, THE, UH, LEAK HAS TO BE REPAIRED.
WE'LL ONLY LOOK AT TWO MONTHS AND WE'LL ONLY GIVE YOU A FRACTION OF THE, OF THE CHARGES.
AND SO I DON'T KNOW THE NUMBERS EXACTLY, BUT I WOULD SAY THAT, UM, WE PROBABLY BENEFIT MORE THAN A THOUSAND CUSTOMERS A YEAR, BUT NOT NEARLY TO THAT EXTENT OF A DOLLAR ADJUSTMENT.
LEAKS HAPPEN ALL OVER THE PLACE.
TOILETS, UM, PLUMBING, YOU KNOW, PIPES COULD BE THEIR IRRIGATION SYSTEMS. SO FOR A VARIETY OF REASONS, FOLKS HAVE LEAKS ON A REGULAR BASIS.
AND THANK YOU AGAIN, MARY, FOR THE PRESENTATION.
UM, IS IT POSSIBLE TO PROVIDE INFORMATION PER DISTRICT ON, UM, ON HOW MUCH ASSISTANCE HAS BEEN GIVEN? UM, I'M CURIOUS TO KNOW HOW MANY PEOPLE IN MY DISTRICT.
SO I KNOW THAT WE CAN DO IT BY ZIP CODE.
THAT'S THE EASIEST WAY FOR US.
UM, BUT YEAH, WE CAN CERTAINLY DO THAT.
CAN YOU, UM, TELL ME WHAT'S THE GAP THAT THEY'RE GOING WITH WITHOUT WATER? LIKE HOW, HOW SOON ARE THEY GETTING TURNED BACK ON? SO, TWO THIRDS DIDN'T EVER EVEN GET CUT OFF.
THEY DEALT WITH US BEFORE WE ACTUALLY WENT OUT.
THEN OF THE ONE THIRD, THEY GOT TURNED OFF, TWO THIRDS OF THOSE GOT TURNED BACK ON.
SO IT'S A, I THINK THAT PERCENTAGE IS WHAT, ABOUT 20% OR SO, AND GENERALLY SPEAKING, WITHIN A DAY, WITHIN A DAY, THEY'RE TURNED BACK ON.
SO THE, THE REMAINING, UH, ONE THIRD OF THE MM-HMM.
SO IF IT'S OBVIOUS THAT SOMEBODY'S LIVING THERE AND WE TURN IT OFF, UM, OVER, WE WILL REACH OUT TO CODE COMPLIANCE.
TO SAY, HEY, THEY DON'T HAVE WATER.
UM, NORMALLY, UH, WE, WE CONTINUE TO READ THE METER ONE TO MAKE SURE THAT THERE'S NO USAGE, SOMEBODY HASN'T TURNED IT BACK ON MM-HMM.
UM, BUT WHEN WE DO THAT, WE'LL USUALLY MAKE SURE IT LOOKS VACANT.
UM, AND THEN IF IT'S NOT, THEN THEN REACH OUT TO CODE COMPLIANCE.
I MEAN, MY CONCERN THERE IS MAYBE YOU HAVE, UM, OR MAYBE THERE'S AN OPPORTUNITY WHEN YOU, WHEN YOU KNOW THAT THEY'VE BEEN TURNED OFF, UM, IS MAYBE IN A MORE TARGETED OUTREACH TO GET ON A PAYMENT PLAN OR, OR SOMETHING LIKE THAT, IF IT'S POSSIBLE, IF YOU KNOW THE ONES THAT HAVE BEEN TURNED OFF.
AND WE CAN CERTAINLY, UH, TRY TO DO THAT ON THE ONES THAT ARE NOT RESTORING SERVICE, SEE IF THERE'S SOME OUTREACH, YOU KNOW MM-HMM.
UM, BUT, UM, THEY'VE ALREADY RECEIVED A LOT OF OUTREACH IN ADVANCE OF THAT AND, AND, UH, YOU KNOW, WHETHER IT'S NOTICES THAT THEY'VE GOTTEN IN THE MAIL OR PHONE CALLS OR, BUT, UH, BUT, BUT YEAH, WE CAN CERTAINLY LOOK AT THAT.
WHAT, WHAT IS THE NUMBER? WHAT IS THE, THE NUMBER OF THE ONE THIRD OF THE ONE THIRD? UH, SO THIS IS WHAT I PROVIDED TO THE, UM, BOARD BACK WHEN I GAVE THEM, UM, A BRIEFING IN JULY TIMEFRAME, AND IT WAS ABOUT 5,000 CUSTOMERS THAT HAD NOT RESTORED SERVICE.
AND, UM, AND THAT WAS NOT JUST, UM, RESIDENTIAL, THAT WAS INCLUDED.
COMMERCIAL IS, IS THE RESIDENTIAL NUMBER HIGHER THAN COMMERCIAL? IS IT MORE RESIDENTIAL
[01:40:01]
THAN A COMMERCIAL? WELL, WE, WE JUST HAVE A WHOLE LOT MORE RESIDENTIAL CUSTOMER CONNECTIONS THAN WE DO COMMERCIAL.AND SO, UM, THE DELINQUENCIES ARE CERTAINLY HIGHER, UH, BECAUSE OF THAT.
BUT I THINK JUST DISPROPORTIONATELY, UM, YES, MORE RESIDENTIAL THAN COMMERCIAL.
UM, BECAUSE I CAN SORT OF UNDERSTAND A COMMERCIAL PROPERTY MIGHT HAVE MOVED OR CLOSER BUSINESS.
UM, THE, THE, THE BIGGER CONCERN IS, IS THE RESIDENTIAL NUMBER.
AND I DO THINK PROBABLY THEY'VE JUST, THEY'VE MOVED ON.
WELL, UM, THE, I, I'D LIKE TO SEE HOW I CAN WORK WITH YOU GUYS MAYBE TO, TO, TO, TO HELP THEM TO UNDERSTAND, YOU KNOW, I'VE BEEN TO A LOT OF AFFAIRS THAT YOU GUYS ATTEND, AND I REALLY DO APPRECIATE YOU, YOU GUYS REALLY DO, UH, A GREAT, AND C P S DOES WELL OUTREACH TO TRY TO GET PEOPLE TO GET ON A PAYMENT PLAN.
I THINK SOMETIMES WHEN THEY'RE, UM, VERY DELINQUENT, THEY'RE, THEY'RE STRESSED AND THEY'RE AFRAID TO TALK TO YOU MM-HMM.
SO SOMETIMES WE, WE CAN HELP WITH, UH, BECAUSE EITHER WE HAVE A RELATIONSHIP WITH THEM OR WE KNOW SOMEBODY IN THE NEIGHBORHOOD THAT MIGHT KNOW THEM JUST TO KIND OF GET TO THEM AND UN HELP THEM TO UNDERSTAND SURE.
THAT THERE'S OPTIONS FOR GETTING THEIR WATER TURNED BACK ON.
UH, THANK YOU, MARY, FOR THE PRESENTATION.
SO IT LOOKS LIKE THERE'S ABOUT 40 MILLION IN PAST DUE BALANCES BASED ON THE SLIDE THAT YOU SHOWED US.
AND I KNOW THAT INCLUDES, WELL THAT'S ALL, ALL CUSTOMERS, RIGHT? CORRECT.
WITHIN CITY LIMITS, OUTSIDE AND COMMERCIAL AND NON-COMMERCIAL.
SO YOU, YOU HAVE 1.6 MILLION FROM ARPA LEFT.
AND THEN HOW MUCH FROM THE COUNTY ARE YOU EXPECTING? SO RIGHT NOW, AS, AS I UNDERSTAND, THE COUNTY HAS ABOUT THREE AND A HALF MILLION DOLLARS THAT THEY'RE, THAT THEY'RE, UM, SO THE BALANCE OF THAT, SO THAT GIVES YOU ABOUT, YOU KNOW, 5 MILLION.
SO THE BALANCE OF THAT WOULD BE PAID THROUGH PAYMENT PLAN, DO YOU ANTICIPATE OR HOPEFULLY YEAH.
SO HOPEFULLY THERE'LL BE PAYMENT PLANS.
UM, IF, IF, UH, AT THIS POINT FOR IT TO BE WRITTEN OFF, THEY WOULD NO LONGER BE A CUSTOMER.
SO THEY WOULD, IF THEY MOVE ON, UM, AT SOME POINT THAT THAT BALANCE WOULD JUST GET WRITTEN OFF.
UM, BUT, UM, IF THEY'RE A CUSTO, IF THEY'RE, IF THEY'RE ACTIVE, THEN THE ONLY WAY THEY CAN STAY ACTIVE IS THERE'S A PAYMENT PLAN GOING ON, THAT KIND OF THING, OR, OR THEY'RE ACTIVELY PURSUING SOME SORT OF, UM, ASSISTANCE.
AND THE, THE BALANCE THAT IS, UH, STRICTLY SAWS, UM, PAYMENTS, IT IS NOT ANY PASS THROUGH FEES OR THE PASS THROUGH FEES INCLUDED.
SO IT, SO WHATEVER THE CUSTOMER HAS BEEN BILLED THAT THEY HAVEN'T PAID, THAT SAWS HAS BILLED THEM, WHICH COULD INCLUDE STORM WATER FEES, IT COULD INCLUDE PASS THROUGH FEES, ALL OF THAT.
IT'S JUST WHATEVER REMAINS UNPAID FROM, FROM WHAT, FROM WHAT WE BILLED THEM.
UM, YOU MENTIONED CONTACTING CODE COMPLIANCE WHEN PEOPLE ARE CUT OFF.
WE DON'T DO IT UNLESS WE THINK THAT THERE'S STILL SOMEBODY LIVING IN THE, THE PROPERTY FOR AND HOW DO YOU, HOW DO YOU KNOW? UH, IT'S NOT EASY.
UM, SO IT, IT, IF TYPICALLY IT WOULD BE, ARE THERE VEHICLES THERE, THAT KIND OF THING.
UM, BUT I MEAN, YOU SEND SOMEBODY OUT TO ALL THE LOCATIONS THAT ARE CUT OFF? WELL, WE READ, UM, THE METER EVEN AFTER IT'S BEEN CUT OFF, WE GO AROUND EVERY MONTH AND STILL READ THE METER.
AND THEN AT THAT POINT, WE WILL, IF THERE'S, THERE'S BEEN NO USAGE, WE'LL LOOK TO, YOU KNOW, DOES IT LOOK LIKE THERE'S SOMEBODY THERE OR IS IT VACANT? BUT THAT'S BEFORE IT'S CUT OFF, RIGHT? NO, THAT WOULD BE AFTER IT'S CUT OFF.
SO WE, SO IF IT'S VACANT, IF THERE'S BEEN NO USAGE AND IT LOOKS VACANT, THEN WE'RE GONNA LEAVE IT ALONE.
BUT IF THERE'S BEEN NO USAGE AND IT LOOKS LIKE THERE MAY BE SOMEBODY THERE, THEN, THEN WE MAY REACH OUT TO CODE COMPLIANCE TO SAY THEY'RE, THEY'RE LIVING THERE WITHOUT WATER, WHICH THERE IS NOT, THEY'RE NOT SUPPOSED TO BE DOING.
THEY NEED TO HAVE WATER IN THEIR HOME.
I MAYBE YOU CAN EXPLAIN TO ME AFTERWARD THAT THE METER STILL READS, EVEN THOUGH THE WATER'S BEEN CUT OFF.
WELL, THEY SHOULDN'T READ ANYTHING IF IT'S SHUT OFF, BUT THAT'S THE WHOLE, THAT'S WHAT WE'RE LOOKING FOR.
ONE, SOMETIMES PEOPLE TURN THEMSELVES BACK ON
BUT THAT'LL BE ABOUT A MONTH AFTER.
IT'S NOT LIKE AN IMMEDIATE MM-HMM.
AND THEN REMIND ME, WHEN SOMEBODY IS CUT OFF, WHAT IS THE PROCESS FOR BEING TURNED BACK ON AGAIN? WHAT DO THEY NEED TO DO? SO THEY'LL TO REACH OUT TO US MM-HMM.
WE DON'T REQUIRE THAT THE ENTIRE BALANCE BE PAID.
WE WILL ASK THEM, UM, IF THEY WANNA ENTER INTO A PAYMENT ARRANGEMENT, AND, UM, AND THEN THEY, UH, WE'LL, WE'LL SET UP TO GO TURN THEIR WATER BACK ON.
SO I, I'VE SHARED THIS WITH MR. PUENTE, BUT, UH, I'LL JUST SHARE IT, UH,
[01:45:01]
HERE AS WELL.SO I HAD, UM, A RESIDENT THAT WAS CUT OFF.
UM, AND ONE OF THEM IS SUFFERING FROM, FROM DEMENTIA NOW.
AND SO THAT BILL HAD GONE UNPAID FOR A WHILE.
UH, THE DAUGHTER IMMEDIATE, ONCE SHE FOUND OUT, WHICH WAS SEVERAL DAYS INTO THIS, HAD PAID OFF THE BALANCE AND CALLED SAWS, BUT SHE WAS UNABLE TO GET IT TURNED ON HERSELF BECAUSE SHE WAS NOT THE RE THE, YOU KNOW, THE PERSON WHO LIVED AT THE PROPERTY.
AND SHE FOUND THAT SHE DIDN'T LIVE IN TOWN.
SO SHE FOUND THAT, UH, FRUSTRATING BECAUSE SHE WANTED HER PARENTS TO HAVE WATER.
SO WHAT, WHAT RECOURSE DOES SOMEONE LIKE THAT HAVE? YEAH, WE, WE, UH, WE STRUGGLE WITH PRIVACY ISSUES AND WE DO HAVE TO BE CAREFUL ABOUT WHO WE'RE TALKING WITH.
UM, I'D HAVE TO LOOK INTO THAT.
I MEAN, I THINK IF SOMEBODY IS WILLING TO PAY THE BILL AND THEY SATISFY THE BILL, THEN WE SAW SHOULD BE WILLING TO GO OUT AND TURN OFF, TURN THE SERVICE BACK ON, REGARDLESS OF WHO PAID THE BILL.
UM, SHE WOULDN'T HAVE BEEN ABLE TO ENTER INTO A PAYMENT PLAN BECAUSE SHE'S NOT ON THE ACCOUNT.
AND SO I CAN, AND THEN MAYBE THAT WAS SOME, YOU KNOW, AGAIN, SOME CONFUSION.
A LOT OF TIMES THEY ASK US WHAT IS THE BALANCE? AND AGAIN, WE'RE STRUGGLING WITH PRIVACY ISSUES THERE.
SO IF, BUT IF SHE HAD A BILL AND COULD TELL WHAT THE BALANCE WAS AND SAY, I WANNA MAKE YOU, I WANNA MAKE A PAYMENT FOR THAT AMOUNT.
I, YOU KNOW, I, I, I, I THINK WE SHOULD HAVE BEEN ABLE TO TURN HER BACK ON.
SO I CAN CERTAINLY WORK THROUGH THAT WITH MY STAFF.
WELL, MARY, I THINK THAT ANSWERS THE QUESTIONS THAT WE HAD.
YOU KNOW, ALL OF THE INFORMATION THAT YOU PROVIDED TO THE COMMITTEE TODAY.
UH, BEFORE WE ADJOURN, LET ME, UH, JUST ASK IF ANY OF THE COMMITTEE MEMBERS HAVE ANYTHING THEY WANT TO HAVE BROUGHT UP.
MY EXPECTATION IS WE'LL BE HEARING FROM C P S.
I DON'T KNOW THAT WE'LL HAVE ANY OTHER, UH, ISSUES TO ASK, SAW TO REPORT ON, BUT PROBABLY IT'LL BE FOCUSING ON C P S ISSUES THE NEXT MEETING.
IF THERE'S NO OTHER QUESTIONS, UH, THEN WE ARE ADJOURNED.