1 00:00:03,500 --> 00:00:12,440 Okay, good morning. I'm Tommy Wells on the chair of DC Water, the District of Columbia Water 2 00:00:12,440 --> 00:00:17,820 and Sewer Authority. This is our 249th meeting of the Board of Directors. It's Thursday, 3 00:00:17,900 --> 00:00:26,800 January 3, 2019, and it is 937. So with that, let's call the meeting to order and we'll 4 00:00:26,800 --> 00:00:27,880 I have a roll call, Ms. Manley. 5 00:00:28,180 --> 00:00:28,860 Chairman Wells. 6 00:00:29,120 --> 00:00:29,420 Here. 7 00:00:29,640 --> 00:00:30,200 Washington Bond. 8 00:00:30,540 --> 00:00:30,680 Here. 9 00:00:30,880 --> 00:00:31,540 David Franco. 10 00:00:31,780 --> 00:00:31,960 Here. 11 00:00:32,400 --> 00:00:33,020 Ellen Boyman. 12 00:00:33,200 --> 00:00:33,340 Here. 13 00:00:33,580 --> 00:00:34,380 Crystal Brumphill. 14 00:00:34,560 --> 00:00:34,720 Here. 15 00:00:35,020 --> 00:00:35,800 Vivignia Baxter. 16 00:00:36,100 --> 00:00:36,240 Here. 17 00:00:36,600 --> 00:00:37,300 For River Cassieri. 18 00:00:37,520 --> 00:00:37,660 Here. 19 00:00:37,980 --> 00:00:38,680 Bonnie Kirkling. 20 00:00:38,960 --> 00:00:39,120 Here. 21 00:00:39,320 --> 00:00:40,100 And Jane Spenderson. 22 00:00:40,340 --> 00:00:40,440 Here. 23 00:00:40,660 --> 00:00:41,180 We have a call. 24 00:00:41,580 --> 00:00:41,900 Great. 25 00:00:42,060 --> 00:00:42,800 Thank you very much. 26 00:00:43,420 --> 00:00:52,520 And can I get a motion to approve the December 1st, 2018 and December 19, 2018, 16th, the 16th Special Meeting 27 00:00:52,520 --> 00:00:52,980 Minutes? 28 00:00:53,480 --> 00:00:54,020 Some moved. 29 00:00:54,360 --> 00:00:54,700 Second. 30 00:00:54,700 --> 00:00:56,680 Okay, move to second, any discussion? 31 00:00:57,640 --> 00:00:58,680 All in favor say aye. 32 00:00:59,200 --> 00:00:59,360 Aye. 33 00:01:00,020 --> 00:01:00,480 All opposed? 34 00:01:00,940 --> 00:01:01,600 Minutes are approved. 35 00:01:02,800 --> 00:01:03,920 All right, Chairman's overview. 36 00:01:05,080 --> 00:01:11,100 Just want to note that I'm not sure when we do this Ms. 37 00:01:11,220 --> 00:01:14,700 Manley, but we'll be saying goodbye to two of our board members. 38 00:01:14,780 --> 00:01:15,360 Do you want to do it now? 39 00:01:16,280 --> 00:01:16,980 All right, let's do it now. 40 00:01:17,120 --> 00:01:22,740 This is, again, you know, it's the nature of public service, 41 00:01:22,740 --> 00:01:29,260 the nature of boards and such that you have terms and there's elections and we come and go, 42 00:01:29,520 --> 00:01:35,860 but I want to say that I'm a special thank you and you'll join me in the well in a moment to 43 00:01:35,860 --> 00:01:43,960 James Paterson from Fairfax County and of course Nick Majet from Prince George's County that 44 00:01:44,560 --> 00:01:52,320 where is Nick? There he is. But there he is. That have service well. We are one of the premier, 45 00:01:52,320 --> 00:01:56,740 if not the premier water utility and sewer utility in the country, if not the world. 46 00:01:57,520 --> 00:01:59,260 And it really requires thoughtful leadership. 47 00:02:00,140 --> 00:02:07,180 And on behalf of the District of Columbia and our government that the way the governments 48 00:02:07,180 --> 00:02:15,400 have worked together is reflected in the manner in which the representatives from each jurisdiction 49 00:02:16,850 --> 00:02:18,560 conduct themselves and provide leadership. 50 00:02:18,560 --> 00:02:24,000 And I don't think you could have a better model anywhere of joint leadership in serving our joint interests. 51 00:02:24,320 --> 00:02:29,580 And we are so appreciative of your work and if you'll join us in the well. 52 00:02:29,580 --> 00:02:31,260 So I'm 53 00:02:53,920 --> 00:03:01,900 going to present you with this really beautiful water drop that I guess is long. 54 00:03:02,500 --> 00:03:06,880 I don't know if you want to work with it, if you see water is life. 55 00:03:07,720 --> 00:03:10,220 And that's not metaphorical, that's real. 56 00:03:10,620 --> 00:03:13,520 And that's one of the three times that you'll have that experience. 57 00:03:14,160 --> 00:03:15,180 And so I want to thank you. 58 00:03:16,120 --> 00:03:18,060 And we'll take a picture. 59 00:03:19,320 --> 00:03:19,720 Is 60 00:03:24,290 --> 00:03:25,950 there anything you want to say about your? 61 00:03:26,990 --> 00:03:30,230 I just, well, I want to say, you know what I had to say, 62 00:03:30,610 --> 00:03:31,770 with the reps we had to warm. 63 00:03:32,610 --> 00:03:35,750 But to, again, I like to reiterate that it's been a real honor, 64 00:03:36,210 --> 00:03:38,610 to sort of reward the people who have been here. 65 00:03:38,910 --> 00:03:42,370 And this is a more classic in front of us. 66 00:03:42,670 --> 00:03:45,630 And I think the bill or the bill is done a fantastic job 67 00:03:45,630 --> 00:03:46,930 with one of the protestors. 68 00:03:48,870 --> 00:03:51,630 So, I would just say, you know, 69 00:03:51,630 --> 00:04:05,500 I think it's important for players to move on to a different role somewhere that's been a pleasure to be back here for a little bit. 70 00:04:06,140 --> 00:04:06,660 Thank you. 71 00:04:13,280 --> 00:04:18,060 Now, often, when there's only a few of you, that is on the board at any given time. 72 00:04:18,060 --> 00:04:25,300 But when we have a civil engineer to share the expertise leadership, it really is quite a 73 00:04:25,300 --> 00:04:31,220 young idea that your jurisdiction shares with the rest of us and you really monitor that 74 00:04:31,220 --> 00:04:32,240 and the best of your profession. 75 00:04:32,900 --> 00:04:38,740 And certainly your leadership, your vice counsel, and as I don't know if the audience recognized 76 00:04:38,740 --> 00:04:43,600 it, but as Board Member Plot brought up, also, for some of you when you give your reports, 77 00:04:43,600 --> 00:04:49,140 which could otherwise be quite dry, so that's what we want to thank you very much. 78 00:04:49,400 --> 00:04:50,160 We'll do our picture. 79 00:04:56,160 --> 00:04:57,280 Then do anything you want to share. 80 00:04:58,480 --> 00:04:59,640 Lynn will share that. 81 00:05:00,110 --> 00:05:29,990 In January, it's always humorous. I'm just echoing what makes that it's been a pleasure serving with such talented board members around the city. Here's I've been on board for my first time. I just appreciate work with all of you all. It's a dedication of mine to serve the community. And then the staff, you see what I'm trying to think is. Being in the business for my whole career is still in the dedication at all. 82 00:06:10,180 --> 00:06:16,400 Okay. Next we will go through committee reports. Let's start with finance and budget committee. 83 00:06:16,400 --> 00:06:17,780 Board Member March. 84 00:06:19,060 --> 00:06:19,460 Thank you. 85 00:06:20,100 --> 00:06:30,400 The Finance and Budget Committee met on Tuesday, December 16, 2018, at 11 a.m., committee members and attendants included Sarah March and Chairman Wells. 86 00:06:32,360 --> 00:06:44,880 The meeting began with the November 2018 Financial Report, Mr. Brown, went over operating revenues, expenditures and capital disbursements. 87 00:06:45,700 --> 00:06:48,880 Approximately 16.7% of the fiscal year is completed. 88 00:06:49,820 --> 00:06:53,680 Operating revenues were at about 19.6% of the budget. 89 00:06:53,940 --> 00:07:02,700 Operating expenditures around 14.4% and capital disbursements were along the lines of 17.4% of the budget. 90 00:07:05,280 --> 00:07:13,120 Mr. Brown, note it, explain the favorable budget due to quarterly payments by the federal government and wholesale customers. 91 00:07:13,820 --> 00:07:18,700 He also noted that the district has paid the November Billing of 2.5 million in December, 92 00:07:19,960 --> 00:07:24,400 and the variance in personnel services which was partially attributable to the absence 93 00:07:24,400 --> 00:07:27,920 of the employee Marant and bonus payments, which will be reflected next month's report. 94 00:07:29,670 --> 00:07:34,700 Mr. Brown also noted that at this early stage in the fiscal year, except for the state 95 00:07:34,700 --> 00:07:39,240 at revenue and dispersement variances, there are no other significant variances to report. 96 00:07:40,800 --> 00:07:46,040 Next, Mr. Brown, a price committee of the fiscal year 2020 budget recommendations that 97 00:07:46,040 --> 00:07:49,000 will be presented for the board for review in 2019. 98 00:07:50,260 --> 00:07:54,800 And he also mentioned that the fiscal year 2018 is not audited as underway and expect 99 00:07:54,800 --> 00:07:56,860 to be completed in December 2018, 100 00:07:59,990 --> 00:08:01,330 moving to the next page. 101 00:08:03,170 --> 00:08:09,650 So in terms of the capital improvement program, Mr. Brown provided an overview of the various 102 00:08:09,650 --> 00:08:12,930 were completed by the board committees, there were three scenarios that were presented, 103 00:08:13,230 --> 00:08:19,630 the current baseline of 4.1 million, a modified baseline ramp up of 5.0 million and full asset 104 00:08:19,630 --> 00:08:21,970 management of 6.5 million. 105 00:08:22,630 --> 00:08:27,770 He went over the financial plan scenarios that were developed by running each capital 106 00:08:27,770 --> 00:08:32,570 scenario through financial plan models so that we could understand the impact on customer 107 00:08:32,570 --> 00:08:33,930 rates and other financial matters. 108 00:08:35,010 --> 00:08:39,370 He discussed, Mr. Brown discussed, the value of the AAA rating and the impact it has on 109 00:08:39,370 --> 00:08:45,330 customer rates. He quantified that the approximate value of a AAA rating would save DC water 110 00:08:45,330 --> 00:08:49,950 customers about $19 million over a 10-year period when compared to the next highest rating 111 00:08:49,950 --> 00:08:58,030 of AA+. He showed a table that discussed how DC water compares to other AAA and AA 112 00:08:58,030 --> 00:09:03,110 rated companies within the water and sewer industry using various metrics, including debt ratio, 113 00:09:03,450 --> 00:09:07,710 outstanding debt levels, coverage ratio, debt service as a percent of total revenues, days 114 00:09:07,710 --> 00:09:12,510 on cash on hand, an average bill as a percent of medium effective buying income. 115 00:09:17,880 --> 00:09:25,940 Ms. Match, I guess I question why these utilities were chosen for comparison to DC water. 116 00:09:26,080 --> 00:09:29,560 Mr. Brown explained these utilities are also on the higher end of the credit rating like DC 117 00:09:29,560 --> 00:09:36,580 water, and Mr. Gattis added that the utilities were chosen are some of the finest run utilities 118 00:09:36,580 --> 00:09:41,880 in the U.S. and since we consider ourselves within that same light, it was fitting that 119 00:09:41,880 --> 00:09:43,000 we compared ourselves to them. 120 00:09:45,200 --> 00:09:49,580 So, I also then asked if the services provided by the Selected Utilities Included Stormwater 121 00:09:49,580 --> 00:09:54,820 drinking water in sewer since the DC water rates included all three, Mr. Ran responded 122 00:09:54,820 --> 00:09:56,840 that he would provide that information to the committee. 123 00:09:58,640 --> 00:09:59,900 and Ms. Maatchaf. 124 00:10:00,000 --> 00:10:29,940 I also, or I asked also if there were other factors such as cost of energy that influences the affordability in various areas and what their impact might be. Mr. Brown suggested the closest metric would be customer's average bill is a percent of median household income. The next item discussed, Mr. Brown noted that a number of days of cash on hand, which is the number of days that an organization can continue to pay its operating expenses given the amount of cash available, has been at approximately 260 days from fiscal year 125 00:10:29,940 --> 00:10:37,440 15 through 17. The total cash on hand for these fiscal years were between $192 million to $209 million 126 00:10:38,040 --> 00:10:43,860 and included the REIT Stabilization Fund. Mr. Brown explained that 250 days is considered 127 00:10:43,860 --> 00:10:48,600 a best practice for triple-lay rating agencies and that the current DC water policy is to keep 128 00:10:48,600 --> 00:10:54,160 120 days of cash on hand. Mr. Brown shared that management anticipates 129 00:10:54,160 --> 00:10:58,980 recommending that the board adopt a policy that holds DC water to the 250 days of cash 130 00:10:58,980 --> 00:11:04,080 on hand. He noted that this could be accomplished either through hearing contributions or 131 00:11:04,080 --> 00:11:09,160 plan contributions that do not include the rate stabilization fund. Mr. Brown stressed the 132 00:11:09,160 --> 00:11:16,400 importance of the days of cash on hand and caution that if we hold the ending cash balance 133 00:11:16,400 --> 00:11:25,680 at 140 million per the court for the policy as operating expenditures, the days of cash on hand 134 00:11:25,680 --> 00:11:29,780 and will fall and may result in additional funds that are drawn from the rate stabilization fund. 135 00:11:31,040 --> 00:11:37,420 Mr. Brown used, went over how the DC water retail rates within without district fees and 136 00:11:37,420 --> 00:11:40,420 the DC water cap customer rates compared to other large utilities. 137 00:11:41,320 --> 00:11:44,620 Mr. Brown reviewed the projected annual water and sewer rate increases and 138 00:11:44,620 --> 00:11:48,620 customer impacts for each of the three scenarios from fiscal year 19 to 2018. 139 00:11:49,360 --> 00:11:55,120 You know that fiscal year 19 and 20 rates of 13% and 5% respectively are the same for all three scenarios. 140 00:11:55,740 --> 00:11:59,560 The annual rate increases for the remaining future years range from 5 to 8 percent for 141 00:11:59,560 --> 00:12:03,840 the baseline, 6 to 10 percent for the modified and 9 to 13 percent for asset management. 142 00:12:05,520 --> 00:12:10,820 E for the review, the related impacts on the average residential, multi-family, and commercial 143 00:12:10,820 --> 00:12:12,220 customer categories. 144 00:12:17,570 --> 00:12:21,850 Regarding the average customer bill under each scenario, I required as to whether the different 145 00:12:21,850 --> 00:12:26,030 scenarios would have potential impact on DC water's bond rating, just to round explain 146 00:12:26,030 --> 00:12:30,070 that they could in that additional debt would mean more debt service and this would drive 147 00:12:30,070 --> 00:12:36,110 up the cost of the water and the sewer bills. Should that impact affordability then there 148 00:12:36,110 --> 00:12:42,550 could then be further impact on our bound rating. Mr. Brown highlighted DC Water's commitment 149 00:12:42,550 --> 00:12:47,250 to its community in various strategies and initiatives undertaken to ensure public outreach 150 00:12:47,250 --> 00:12:51,130 and customer engagement. He acknowledged that the district's water and sewer infrastructure, 151 00:12:51,130 --> 00:12:54,330 which has served as well for over 100 years is now showing its age. 152 00:12:55,010 --> 00:13:00,110 You know that the need for DC water to invest more than $4 billion in utility systems 153 00:13:00,110 --> 00:13:03,390 to meet federal mandates and suggest that this may still not be enough. 154 00:13:05,070 --> 00:13:09,170 While these investments require rate increases, they will also boost the local economy 155 00:13:09,170 --> 00:13:11,810 and provide jobs in other quality of life benefits. 156 00:13:12,390 --> 00:13:17,910 An example was given of, where you can see these benefits, 157 00:13:17,910 --> 00:13:20,910 benefits at the Wharf and on the Anacostia River front. 158 00:13:22,690 --> 00:13:27,250 Mr. Brown shared the strategies to engage the customer and highlight what DC Water has been 159 00:13:27,970 --> 00:13:34,570 doing to benefit residences and educate them on the consequences of not investing in infrastructure. 160 00:13:35,550 --> 00:13:36,270 Excuse me. 161 00:13:38,430 --> 00:13:42,490 Mr. Wells inquired on how DC Water accounts for the variability in drinking water charges. 162 00:13:42,750 --> 00:13:47,410 Mr. Brown shared that DC Water tries to anticipate and mitigate those risks by making assumptions 163 00:13:47,410 --> 00:13:52,750 in the financial plan. He noted that DC Water's plan assumes an increase in overall cost 164 00:13:52,750 --> 00:13:57,430 and a 1% reduction in consumption each year as that has been the trend over the past several years. 165 00:13:58,490 --> 00:14:02,150 Mr. Well, Chairman Welles asked if the U.S. Army Corps of Engineers is planning 166 00:14:02,150 --> 00:14:07,410 any substantive changes in their rates since that is what they used to fund capital investments. 167 00:14:07,590 --> 00:14:11,310 Mr. Brown responded that there will be an increase in investments based on conversations with the 168 00:14:11,770 --> 00:14:16,190 adquaduct. Mr. Gatt has said that DC Water is in concert contact with Washington, 169 00:14:16,190 --> 00:14:20,570 in Ecuador and the U.S. Army Corps of Engineers, and that DC water has a pretty good handle 170 00:14:20,570 --> 00:14:23,150 on what is going on with their capital program. 171 00:14:24,130 --> 00:14:29,690 I asked with regard to consequences of not investing adequately if DC water does not 172 00:14:29,690 --> 00:14:35,450 implement the full capital asset management pack, the financial impacts, or potential failures 173 00:14:35,450 --> 00:14:39,670 might be missing ground acknowledge that, well, it's difficult to quantify, in most cases, 174 00:14:39,830 --> 00:14:40,790 it's cost avoidance. 175 00:14:41,630 --> 00:14:45,230 And he added that the budget and engineering teams are working to include information for 176 00:14:45,230 --> 00:14:47,990 discussion with the committees as part of the budget review process. 177 00:14:49,750 --> 00:14:53,650 Mr. Wells wanted to know the plan for community outreach and whether there is anything different 178 00:14:53,650 --> 00:14:57,290 being done with the city administrator's office and the mayor's office regarding the budget 179 00:14:57,970 --> 00:14:59,830 presentation and D.C. Waters capital needs. 180 00:15:00,000 --> 00:15:29,680 Mr. Brown responded that D.C. Water is planning to do outreach to the city, specifically regarding the condition of D.C. Water's assets. You noted that D.C. Water has heard a lot from the stakeholder alliance regarding clean rivers and pervious area charge, and the district's right away acknowledging that, in most cities, there isn't such a charge. Mr. Ramsey, the community outreach has not been finalized, and that D.C. Water's marketing communications department, in association with the customer service department, are working to determine the most effective and appropriate way to reach 181 00:15:29,680 --> 00:15:30,520 the community. 182 00:15:32,160 --> 00:15:35,660 Hearing no further business, the meeting was adjourned at 11.59. 183 00:15:36,880 --> 00:15:38,280 That completes the report. 184 00:15:39,340 --> 00:15:40,460 Thank you very much. 185 00:15:40,540 --> 00:15:42,120 Any questions for board? 186 00:15:42,240 --> 00:15:48,600 Mr. Chair, I have a question if I might for our CFO and that is, do you anticipate that 187 00:15:48,600 --> 00:15:52,080 the current federal shutdown will impact our quarterly federal payment? 188 00:15:52,540 --> 00:15:54,440 Thank you for asking that. 189 00:15:54,700 --> 00:15:57,780 I actually had some materials that I wanted to share with the board. 190 00:15:57,780 --> 00:16:27,640 We received an email message Wednesday, January 2nd, which was yesterday, from an individual at the Bureau of Fiscal Service with the Treasury, and it states in part, the DC water and sewer payment will not fully be remitted as planned for the second October, I'm sorry, excuse me, the second quarter of 2019 due to the shutdown of the federal government and the potential creation of anti-deficiency act violations, the Department of Treasury and capacity of collector and remitter for the federal government will only collect and remit approximately 191 00:16:27,640 --> 00:16:33,260 10 and a half million of the 16 and a half million owed to DC water and sewer authority. 192 00:16:33,980 --> 00:16:38,580 The collection of the charges is legislatively mandated, excuse me. 193 00:16:38,980 --> 00:16:43,700 However, it's the opinion of the council that the Anti-Deficiency Act supersedes this reimbursement directive. 194 00:16:44,300 --> 00:16:48,340 So of the approximately 16 and a half million dollars that we anticipated to receive, 195 00:16:49,100 --> 00:16:51,620 we will only receive 10 and a half million dollars. 196 00:16:51,860 --> 00:16:54,900 I don't think that that will have a significant impact on our cash flow. 197 00:16:54,900 --> 00:16:56,900 So obviously it does affect us. 198 00:16:58,020 --> 00:16:58,860 Thank you. 199 00:17:00,860 --> 00:17:12,380 It brings up the interesting question, is there a time from non-payment when we cut someone's water off? 200 00:17:13,140 --> 00:17:20,760 I'm not trying to make news today, but I don't know in terms of what's- 201 00:17:27,980 --> 00:17:44,500 In terms of how long we carry non-payment, let's go to the absurd or the furthest out, how long can we carry the federal government before it creates a fiscal weakness to the enterprise? 202 00:17:46,020 --> 00:18:01,860 I mean, if it's $5 million, a quarter, $15 million by the end of the year, I mean, it would probably be a stop at the top of my head, I mean, approximately a year before it begins to be a real problem. 203 00:18:02,140 --> 00:18:09,540 I mean, that would be a shortfall of about $20 million and then we'd have to have a conversation on how to move forward. 204 00:18:09,540 --> 00:18:12,820 Is that included there in previous service charge, everything altogether? 205 00:18:13,020 --> 00:18:17,220 It does, yeah, there are group bill and that includes all of their charges. 206 00:18:17,840 --> 00:18:19,620 Okay, but board member Franco? 207 00:18:20,440 --> 00:18:24,240 Are we entitled to late payment fees in the federal government? 208 00:18:26,180 --> 00:18:32,680 Like the District of Columbia University payments, the federal bill is what's called a group bill. 209 00:18:33,200 --> 00:18:38,320 Because the federal government pays for multiple locations under a group bill. 210 00:18:38,320 --> 00:18:46,740 Well, as practice, we have not charged late payments for group bills that are late, including the District of Columbia. 211 00:18:48,820 --> 00:18:52,920 By we reconsider that practice with the federal government, in this particular instance. 212 00:18:53,160 --> 00:18:54,400 We certainly will, thank you. 213 00:18:54,940 --> 00:19:01,860 Frishburg, small comments on the written report under the achievement, achievement management. 214 00:19:02,100 --> 00:19:06,120 I think it's asset management, is a missing word in there. 215 00:19:06,120 --> 00:19:12,800 And then I think the numbers you have should be billions, not millions, I'm hoping, right? 216 00:19:14,380 --> 00:19:18,960 Our baseline, 4.1 million, yes, excuse me. 217 00:19:21,600 --> 00:19:28,940 And more significantly, the conversation that you had about the board policy with respect 218 00:19:28,940 --> 00:19:34,620 to cash on hand and the bond rating expectation of 250 days. 219 00:19:34,620 --> 00:19:44,140 Is that a proposal that's coming back to the board or is that or so what's the timeline that you're thinking about bringing that to the board? 220 00:19:45,840 --> 00:19:48,520 It will be the spring likely with the budget. 221 00:19:48,820 --> 00:19:58,420 I mean, I think what I wanted to do is start the conversation with the board with the committee and then the board about days of cash and how the great stabilization fund plays into that. 222 00:20:00,000 --> 00:20:29,900 We're working on the budget proposal now and working to ensure that we have 250 days cash, and ideally that would be reflected in board policy that is aligned with the budget. So I anticipate that's a February or March timeframe. And then a similar question on the outreach plan, if I know it's not your domain, but it was noted that that plan is coming. And what's the timeline there? 223 00:20:29,900 --> 00:20:38,740 and that, I guess it's particularly sensitive with respect to the sort of February, March timeline for the budget consideration. 224 00:20:39,880 --> 00:20:44,200 Sure, so we're roughly coincide with the budget. 225 00:20:44,500 --> 00:20:51,540 We have had conversations about outreach to, particularly the District of Columbia. 226 00:20:51,960 --> 00:20:58,300 I mean, I have a meeting next Thursday with the budget director, with the Council budget director. 227 00:20:58,300 --> 00:21:01,460 So, we have begun some initial conversations. 228 00:21:01,860 --> 00:21:06,840 I think this is going to be a, this is not something that's just one and done. 229 00:21:07,320 --> 00:21:11,240 This is something that we have to engage in daily and weekly. 230 00:21:11,680 --> 00:21:16,720 And so, we've begun that process and I anticipate that that will be ramped up as we release 231 00:21:16,720 --> 00:21:18,640 the FY20 proposed budget. 232 00:21:19,340 --> 00:21:27,100 I just want to reiterate the previous conversations about engagement, particularly at the council 233 00:21:27,100 --> 00:21:33,960 level on some of the core infrastructure issues and even separate from the price tag. 234 00:21:34,320 --> 00:21:40,080 I think starting engagement at the moment where you're having a conversation around the 235 00:21:40,080 --> 00:21:47,480 price tag is undermines the ability for folks to fully absorb some of the underlying infrastructure 236 00:21:47,480 --> 00:21:54,620 issues and so sequentially it would be ideal if we were in a position to be already having 237 00:21:54,620 --> 00:21:59,960 that conversation at a much richer level so that people have that as a foundation before 238 00:21:59,960 --> 00:22:02,860 we get to the budget conversation. 239 00:22:03,380 --> 00:22:07,820 So if I could add, your point is well taken and you're exactly right. 240 00:22:09,020 --> 00:22:14,060 We have, and as Matt stated as well and he's correct as well, we have started those conversations 241 00:22:14,060 --> 00:22:14,760 internally. 242 00:22:15,080 --> 00:22:21,900 Here in the month of January we will begin that engagement with a number of different stakeholders, 243 00:22:22,560 --> 00:22:29,860 which does include council members, the mayors, the mayor and so forth and so on. 244 00:22:30,040 --> 00:22:34,220 So this is going to be a campaign and it will be one that will be ongoing. 245 00:22:34,760 --> 00:22:37,740 So as Matt stated, we don't want it to be a one and done. 246 00:22:38,060 --> 00:22:42,840 This is about relationship building as well and everyone understanding 247 00:22:42,840 --> 00:22:46,680 what we have to deal with on a day-to-day basis and what our challenges are, 248 00:22:47,000 --> 00:22:48,360 but also just overall. 249 00:22:48,360 --> 00:22:58,300 We do this every single day already, but we will now be what our team calls being more 250 00:22:58,300 --> 00:23:04,260 surgical about it as well and pinpointing the different things, but we're constantly 251 00:23:04,260 --> 00:23:08,980 in contact and building those relationships and so forth and so on. 252 00:23:09,080 --> 00:23:14,380 But we will now make it a full-blown campaign where we are targeting different stakeholders 253 00:23:14,380 --> 00:23:17,820 for different reasons and so forth and so on. 254 00:23:17,820 --> 00:23:20,820 And so your point is well taken and that does start here in January. 255 00:23:21,560 --> 00:23:21,940 Thank you. 256 00:23:21,940 --> 00:23:22,220 You're welcome. 257 00:23:26,820 --> 00:23:27,200 Yes. 258 00:23:27,360 --> 00:23:29,820 I want to note that we've been joined by Tony Giancola. 259 00:23:30,100 --> 00:23:30,400 By phone. 260 00:23:30,720 --> 00:23:31,560 Tony, you have a question? 261 00:23:32,800 --> 00:23:33,060 I do. 262 00:23:33,280 --> 00:23:34,020 I should 263 00:23:39,370 --> 00:23:42,470 have on the amount of cash on hand we should maintain. 264 00:23:43,410 --> 00:23:44,250 I like to know 265 00:23:48,600 --> 00:23:52,140 the fact that we have not really drawn from the late stabilization fund. 266 00:23:52,540 --> 00:23:55,040 And yet our cash on hand has been going up. 267 00:23:55,240 --> 00:24:01,240 So determining a appropriate level for the cash on hand I think is a discussion we need 268 00:24:01,240 --> 00:24:06,020 You do need to pursue and give as much time as possible to do that. 269 00:24:06,620 --> 00:24:10,540 I think the concern I have is that since we haven't drawn from the rate stabilization 270 00:24:10,540 --> 00:24:16,180 fund, and in fact we've had high ratings in our bond market for at least two years as I 271 00:24:16,180 --> 00:24:23,620 recall, you know, maybe as to 16 number is something that's a little weak and could be lower, 272 00:24:23,740 --> 00:24:29,420 which is of course dealing with the issue of eventually reducing our rate structure certainly 273 00:24:29,420 --> 00:24:35,020 in our water rates. The second item has to do with the federal government, a water cut-up. 274 00:24:36,060 --> 00:24:40,220 Obviously, we don't want to cut up federal government. We want to get more, but it may be 275 00:24:40,220 --> 00:24:46,560 proven for us to develop some sort of press release that we're discussing that, and then 276 00:24:46,560 --> 00:24:51,580 when we would consider shutting out water to the federal government because of non-payment 277 00:24:51,580 --> 00:24:57,320 of their water bill. Clearly, I would personally like to see the White House cut-up, but that's 278 00:24:57,320 --> 00:24:58,320 my own personal time. 279 00:25:00,000 --> 00:25:04,780 Let me reflect it in a minute. That's just dictum. 280 00:25:08,580 --> 00:25:29,980 So thank you, Mr. Jenkola. Let me note that. I think the issue of the amount of cash on hand has come up a couple of times. Let me ask the, I think the budget finance committee should, should visit that as an agenda item, if not, also the 281 00:25:29,980 --> 00:25:34,860 The governance committee is a policy item to work together on that. 282 00:25:35,000 --> 00:25:42,960 I'm not sure overlap there, but in terms of policies that come out often is the governance committee that comes out of the policy. 283 00:25:43,660 --> 00:25:50,680 So I think first it should be the Finance and Revenue Committee, the Finance Budget Committee to just 284 00:25:53,100 --> 00:25:58,740 Just visit that to see what it ought to be and then potentially see if we need to make 285 00:25:58,740 --> 00:25:59,440 a policy change. 286 00:26:00,120 --> 00:26:00,560 Sure. 287 00:26:00,720 --> 00:26:05,760 So we provided some information to the Finance Committee at the last meeting and it's 288 00:26:05,760 --> 00:26:07,880 the same information that was provided to retail rates committee. 289 00:26:08,440 --> 00:26:14,880 We can review that again, just briefly 250 days of cash is at the low end of our highly 290 00:26:14,880 --> 00:26:15,520 rated peers. 291 00:26:15,880 --> 00:26:19,380 So we're already at the low end of days of cash, including the rate stabilization fund. 292 00:26:19,380 --> 00:26:25,260 And then secondly, I've provided a scorecard from a rating agency, and if we are to maintain our AAA rating, 293 00:26:25,920 --> 00:26:29,260 it's my strong belief that we need to maintain at least 250 days cash. 294 00:26:29,680 --> 00:26:30,500 That's really the floor. 295 00:26:31,560 --> 00:26:37,900 If you look at our other financial metrics, and again, a bond rating isn't made or broken on a single metric. 296 00:26:38,020 --> 00:26:42,760 But if you look at all of our financial metrics with the exception of the strong regional economy, 297 00:26:43,000 --> 00:26:47,480 and this board's willingness and ability to raise rates to meet the capital needs, 298 00:26:47,480 --> 00:26:51,260 all of our financial metrics are at the low end of our peers. 299 00:26:51,580 --> 00:26:53,100 So I'm happy to have that conversation. 300 00:26:53,300 --> 00:26:57,180 So Mr. Brown, what I'm suggesting is not any further research, 301 00:26:57,680 --> 00:26:59,400 but take the work that you've already done. 302 00:26:59,840 --> 00:27:04,400 See what the policy is in terms of what's the policy of DC water 303 00:27:04,400 --> 00:27:09,560 in terms of a cash on hand requirement, 304 00:27:10,160 --> 00:27:12,540 and how many days rather than how much, 305 00:27:12,900 --> 00:27:16,160 and to review that and see if that should be reflected 306 00:27:16,160 --> 00:27:18,000 within our policy as a board. 307 00:27:18,660 --> 00:27:22,180 I will, and it will also contain a recommendation of how we get there. 308 00:27:22,700 --> 00:27:27,400 There are multiple ways to get there, whether it's allocation of year-end surplus, if it's available, 309 00:27:27,980 --> 00:27:33,320 whether it's included in the rates or some combination of those two, but the recommendation will also, 310 00:27:33,720 --> 00:27:39,360 and the discussion, of course, with the board committees will include not only a target, but 311 00:27:39,360 --> 00:27:40,340 also how we get there. 312 00:27:40,340 --> 00:27:53,560 Right, I've got that and that could come from the financial revenue or rates, but in particular the policy would just probably state a number of days rather than how. 313 00:27:54,160 --> 00:27:57,340 I agree with you, that's the, that's the way to do it, it's the number of days. 314 00:27:58,120 --> 00:27:58,440 Okay. 315 00:27:59,640 --> 00:28:01,960 Okay, Mr. Jean-Coli, you had a second question. 316 00:28:02,580 --> 00:28:04,020 Oh, no, you hit both issues. 317 00:28:05,040 --> 00:28:06,220 Yeah, I already have to. 318 00:28:08,710 --> 00:28:10,030 All right, thank you, anybody else? 319 00:28:11,890 --> 00:28:15,110 Mr. Franco, two things to one that's very minor. 320 00:28:16,430 --> 00:28:26,110 I'm looking at the date of this committee meeting Tuesday, December 16th, and I think Tuesday was the 18th. 321 00:28:26,110 --> 00:28:26,670 It was a check. 322 00:28:29,400 --> 00:28:41,040 Tuesday, December 16th, this Saturday, the second point was Mr. Brown, do we rely on the federal government for some appropriations? 323 00:28:42,140 --> 00:29:00,420 The, well, the, the big one is for the clean rivers programs, about $14 million a year, their discretion, it's appropriated and I'm not sure if we've received this year's payment, I will find out we have not yet received that payment for this year, the $14 million. 324 00:29:00,420 --> 00:29:02,240 It should be sensitive to that. 325 00:29:03,060 --> 00:29:03,640 Okay, thanks. 326 00:29:06,400 --> 00:29:06,980 Okay. 327 00:29:07,600 --> 00:29:08,820 All right, everybody. 328 00:29:09,300 --> 00:29:12,640 Next, we'll hear from the Environmental Quality and Operations Committee. 329 00:29:13,560 --> 00:29:14,620 Mr. Patterson. 330 00:29:15,820 --> 00:29:16,340 Good morning. 331 00:29:17,060 --> 00:29:19,320 We met on Thursday, December 20th. 332 00:29:19,340 --> 00:29:24,580 The meeting started with Mr. Achilles Tesspe, providing an update on the blue plane's treatment 333 00:29:24,580 --> 00:29:25,380 and plants performance. 334 00:29:26,120 --> 00:29:29,160 And he noted that with record participation levels 335 00:29:29,160 --> 00:29:31,680 were recorded in the DC Metro area, 336 00:29:32,320 --> 00:29:33,920 the performance of the plant was excellent 337 00:29:33,920 --> 00:29:36,020 and that effluent quality and parameters 338 00:29:36,020 --> 00:29:38,500 were below the EPA permit limits. 339 00:29:39,620 --> 00:29:42,960 During the month, the Washington Metro region received record 340 00:29:44,340 --> 00:29:47,440 rainfalls total of 7.57 inches 341 00:29:47,440 --> 00:29:51,760 versus a normal of 3.17 as measured at national airport. 342 00:29:51,760 --> 00:29:59,980 In a total of 735 million gallons of CSS captured in the tunnel system were pumped and treated at the... 343 00:30:00,000 --> 00:30:29,840 We do enhance clarification facility. And since the commissioning last March, the facility has captured a total of, and this is significant, a total of 4.14 billion gallons and 800 wet tons of screenings and grit that will remove that otherwise would have been discharged into the Anacostia River. So that's quite an accomplishment. At our committee, we really recommended that the enterprise 344 00:30:29,840 --> 00:30:34,160 find a way, you know, we talked about in the retail rates, there's a lot of talk about 345 00:30:34,160 --> 00:30:38,420 what the system will do, this is actually what the system has done, and we need to find 346 00:30:38,420 --> 00:30:42,060 a way to really get that out in front of the public more. 347 00:30:43,360 --> 00:30:45,260 And that concludes it, Mr. Testphase report. 348 00:30:46,180 --> 00:30:53,120 Next, Mr. Chris Piot, the Matt Scientist of D.C. Water, gave us a really interesting presentation 349 00:30:53,120 --> 00:30:58,880 and it's kind of wrong in the lines of what Chris has talked about a lot in the waste industry 350 00:30:58,880 --> 00:31:05,720 is there's no such thing as waste only wasted resources and the enterprise did a RFI looking 351 00:31:05,720 --> 00:31:13,100 at for partners to partner with the enterprise to look at ways to use waste that DC water 352 00:31:13,760 --> 00:31:19,280 produces. I present an interesting energy map that looked at things like hydro power, 353 00:31:19,660 --> 00:31:26,980 thermal recovery from the wastewater systems and pipes solar, wind, micro grids, 354 00:31:26,980 --> 00:31:31,660 It's a lot of different possibilities that could be found. 355 00:31:32,260 --> 00:31:38,120 In the purpose of the RFI, RFI was really to look at those partners and what interests 356 00:31:38,120 --> 00:31:41,180 were there in pursuing in these different elements. 357 00:31:42,420 --> 00:31:46,280 They met their 11 respondents to the RFI. 358 00:31:46,760 --> 00:31:51,900 They met with three firms and outlined a draft approach to pay for services through revenues 359 00:31:51,900 --> 00:31:52,600 that would be generated. 360 00:31:53,140 --> 00:31:54,880 So the whole concept is this wouldn't come. 361 00:31:54,880 --> 00:32:00,940 These would be self-supporting activities and they're actively searching for partnership 362 00:32:00,940 --> 00:32:03,300 to help with some of the higher priority projects. 363 00:32:04,420 --> 00:32:10,960 Some of the potential projects that were identified was, I don't know if I'm saying this right, 364 00:32:11,840 --> 00:32:20,840 die gas, RNG for vehicle fuel, solar, offsite solar, co-digestion, bloom storage and processing, 365 00:32:20,840 --> 00:32:26,380 housing, blue planes, thermal recovery, biosolids drying, secondary blower upgrades, 366 00:32:27,120 --> 00:32:32,120 sewer heat recovery, and district heating, where some of the elements and the goals of 367 00:32:32,120 --> 00:32:36,180 the presentation is really to inform the committee of the concepts who are not seeking any 368 00:32:36,180 --> 00:32:42,020 kind of decisions from the committee at this point or be future RFPs, depending upon how 369 00:32:42,020 --> 00:32:43,800 the discussions go forward. 370 00:32:45,140 --> 00:32:52,800 And with the goal of realizing under leveraged resources at the facility, there's also a presentation 371 00:32:52,800 --> 00:33:04,380 on the difference between biogas versus generating fuel and wrecks versus rins and the value difference 372 00:33:04,380 --> 00:33:05,180 between the two. 373 00:33:05,700 --> 00:33:09,580 So these are all exciting things that the enterprise is exploring and we'll be brought back 374 00:33:09,580 --> 00:33:12,060 to the committee as those discussions proceed. 375 00:33:13,030 --> 00:33:15,800 There are several joint use action items present. 376 00:33:16,300 --> 00:33:18,900 The first one was for supply and delivery of fair chloride. 377 00:33:19,900 --> 00:33:23,620 The second was repair rehab of various process assets, 378 00:33:24,200 --> 00:33:26,960 electric motor and contracting company. 379 00:33:27,900 --> 00:33:32,680 There was a nine joint use change order item recommended forward 380 00:33:32,680 --> 00:33:36,560 to the full board with spring valley main rehab and replacement. 381 00:33:37,840 --> 00:33:43,560 The principal cause of the change order was really in the operation of a liner cutting. 382 00:33:43,840 --> 00:33:48,800 So when you line a pipe, a liner cutting tool is routinely used throughout the wastewater 383 00:33:48,800 --> 00:33:51,760 industry to reinstate service connections. 384 00:33:52,790 --> 00:33:57,640 The water quality department in DC water alerted the project management team of the possibility 385 00:33:57,640 --> 00:34:02,560 that lead particulates from all lead service lines may seep into the drinking water during 386 00:34:02,560 --> 00:34:03,940 operation of this cutter tool. 387 00:34:03,940 --> 00:34:11,340 So, DC water then elected to replace all known suspected lead service lines and conjunctions 388 00:34:11,340 --> 00:34:14,200 of REAP project resulting in this change order. 389 00:34:15,280 --> 00:34:20,540 This conservative measure avoid any issues that may arise from known or suspected lead service 390 00:34:20,540 --> 00:34:22,900 lines and provide protection to the customer. 391 00:34:23,840 --> 00:34:29,460 So the three action items were all recommended for approval by the full board. 392 00:34:30,820 --> 00:34:36,600 Next we had an update, Mr. Carlton Ray, and the Clean Rivers Project, quarterly update. 393 00:34:38,380 --> 00:34:46,500 And again, I will restate the 4 billion gallons that I remember last March as we're heading 394 00:34:46,500 --> 00:34:50,980 towards March, the criticality of meeting that consent to order date, and the years and 395 00:34:50,980 --> 00:34:56,080 years, decade of work to get that project done, and now to see the results of that in terms 396 00:34:56,080 --> 00:34:59,940 of grit and CSOs, not... 397 00:35:00,000 --> 00:35:29,720 We're going in the Anaconda City of River. The enterprise is to be congratulated on that result. Mr. Gray gave an update regarding the Clean Rivers projects. And the first phase of the Anaconda City River Tunnel System was commissioned in the March 20th. The Northeast boundary tunnel, and there's a lot more detail in the report, but that's continuing under construction. The Green Infrastructure Project and Rock Creek is nearing completion. While the Green Infrastructure Project is in Potomac River Basin, 398 00:35:29,720 --> 00:35:31,860 will be completed in the spring of 2019. 399 00:35:33,020 --> 00:35:35,200 And the Potomac River Tunnel Facility Plan is on track 400 00:35:35,660 --> 00:35:38,760 and being submitted to EPA by the end of 2018. 401 00:35:39,440 --> 00:35:40,500 So I'm assuming that was done. 402 00:35:42,800 --> 00:35:45,260 Mr. Ray also stated that the Clean Rivers project 403 00:35:45,260 --> 00:35:49,420 has expected to meet the fiscal year 2019 spending goal 404 00:35:50,020 --> 00:35:53,660 and concluded the quarterly report by mentioning a recent song 405 00:35:53,660 --> 00:35:55,060 that was played for us in the committee. 406 00:35:55,520 --> 00:35:56,820 I don't know if we're gonna get the whole board 407 00:35:56,820 --> 00:36:01,920 I have to listen to that, but I think that song, that link to that song maybe should 408 00:36:01,920 --> 00:36:07,560 be forward at all board members, but it referenced the Clean River project and congratulated 409 00:36:07,560 --> 00:36:10,060 the team for their accomplishments on the Anacostia River. 410 00:36:10,480 --> 00:36:11,280 It was a very nice song. 411 00:36:13,300 --> 00:36:20,200 Under other business, I would just note that DC Water, CEO and President, David Gattis, 412 00:36:20,900 --> 00:36:24,460 on behalf of the board of the directors, and employees of DC Water, presented at the 413 00:36:24,460 --> 00:36:28,260 committee chairman and the reason I'm pointing this out is they present the award to David 414 00:36:28,260 --> 00:36:34,580 Paterson and my brother who's a year older than me is David and my whole life growing 415 00:36:34,580 --> 00:36:40,960 up I was always James David David James so I respond to either James or David but I'll 416 00:36:40,960 --> 00:36:55,780 make sure I share this award with my dear brother and richman David Paterson thank you and 417 00:36:55,780 --> 00:37:07,260 For the committee regarding the committee report, okay, none are there any issues to be brought up of general interest by board members? 418 00:37:08,840 --> 00:37:14,460 There being none, we will move on to our CEO General Manager's report, David Gettis. 419 00:37:15,060 --> 00:37:18,580 Thank you very much, Mr. Chair, and happy new year to everyone as well. 420 00:37:18,580 --> 00:37:27,000 Now, before I go into my report, I do have two employees that I would like to honor. 421 00:37:27,900 --> 00:37:33,200 Even though it's only two today, I will tell you that what I'm about to read to you from 422 00:37:33,200 --> 00:37:39,940 a letter I received from one of our customers is truly tells you who DC water is and who 423 00:37:39,940 --> 00:37:45,600 we want to continue to be by the actions of these employees and the great men and women 424 00:37:45,600 --> 00:37:53,440 of this utility do a fantastic job on a day-to-day basis and work with the residents in the 425 00:37:53,440 --> 00:38:01,500 district and really supply a service that is truly something that we need on a day-to-day 426 00:38:01,500 --> 00:38:06,860 basis, and that's water, so I appreciate what our employees do on a day-to-day basis. 427 00:38:08,180 --> 00:38:14,640 The letter reads as follows, I want to compliment two of your workers, Mr. Kenneth Bass and his 428 00:38:14,640 --> 00:38:20,560 associate Earl Cruz. They came to my house in response to an emergency call I made 429 00:38:20,560 --> 00:38:26,000 about water a water backup on my property. Though it turned out to be that the 430 00:38:26,000 --> 00:38:31,220 problem was not that of DC water Mr. Bass offered to come to the back of my 431 00:38:31,220 --> 00:38:38,740 property and try to unclog a drain for me. I accept it. And he was able to unclog the 432 00:38:38,740 --> 00:38:46,400 I am 72 years old. I'm a 72-year-old lady and had been unable to do the job myself when I try. 433 00:38:47,440 --> 00:38:59,700 As you can imagine, I was anxious and also rising water was rising within my cell or well-drained and much relieved to have the problem solved. 434 00:38:59,700 --> 00:39:07,260 I thank Mr. Bass for his help, and he said that that is what we do at DC Water. 435 00:39:08,400 --> 00:39:22,580 And I really looked at Mr. Bass and said to him, I know that I appreciate the help, but despite that response, I knew that what he had done was above and beyond the call of duty. 436 00:39:22,580 --> 00:39:31,740 So I just wanted to pass this information on to Mr. Bass and Mr. Earl's supervisor or whoever would appreciate it. 437 00:39:31,940 --> 00:39:33,820 They did me a kind term. 438 00:39:34,900 --> 00:39:38,460 Any more general comment? I want to say that I love DC water. 439 00:39:39,360 --> 00:39:40,940 You're my favorite utility. 440 00:39:41,680 --> 00:39:44,080 I didn't make that up. She actually wrote this. 441 00:39:46,320 --> 00:39:52,560 There are a lot of water problems on Arkansas Avenue, Northwest, flooding on the street, 442 00:39:52,560 --> 00:40:00,000 Clawed street drains plus my own problem with tree roots in the sewer well in the sewer line and 443 00:40:00,000 --> 00:40:23,900 And I found that all of my calls that I make from an emergency standpoint on your emergency line to operators, your operators are polite and responsive, and the men and women who respond to the call are prompt, accommodating and solve the problem one way or another, one way or another. So I thank you, DC water, one appreciative customer, Lynn, make that it. 444 00:40:26,160 --> 00:40:31,420 That's a touching letter that we received. And so I would love to 445 00:40:31,420 --> 00:40:36,980 We present to you these two employees, Mr. Wells, if you'll join me in the well for the 446 00:40:36,980 --> 00:40:38,360 picture, I would appreciate it. 447 00:40:38,520 --> 00:40:38,820 Thank you. 448 00:41:44,280 --> 00:41:51,720 I briefly read from, just summary from my report, as you know, December was a short month 449 00:41:51,720 --> 00:41:56,420 for some of us, but here at DC Water, we are 24-7. 450 00:41:57,300 --> 00:42:01,180 And so we really took no time all. 451 00:42:01,660 --> 00:42:06,060 A lot of us here at DC Water, and that's something that is unique. 452 00:42:06,060 --> 00:42:10,060 but it does come with the work and what we do on a day-to-day basis. 453 00:42:10,980 --> 00:42:16,160 In the month of December, our group spent a lot of time preparing for the 2020 budget. 454 00:42:16,960 --> 00:42:26,060 Matt and his team have done a fantastic job of, I guess, some would say, herring cats. 455 00:42:27,220 --> 00:42:31,600 But they have done a fantastic job of beginning to really bring us together 456 00:42:31,600 --> 00:42:37,980 So that we can have a true understanding and attack the affordability issue that we have here in the district. 457 00:42:38,740 --> 00:42:42,420 We're looking at many ways to try and solve that affordability issue. 458 00:42:42,700 --> 00:42:52,700 We're looking at going to volumetric a part of our fee being volumetric, allowing those customers to control their 459 00:42:52,700 --> 00:42:56,660 create charge to a certain extent and to have more control than what they have today. 460 00:42:57,340 --> 00:43:05,380 Matt's group is also taking a look at increasing the 4% credit to a different number. 461 00:43:05,800 --> 00:43:09,400 So I won't say what that number is, me and Matt are going back and forth on what that 462 00:43:09,400 --> 00:43:10,000 number is. 463 00:43:11,080 --> 00:43:18,580 But we are doing all that we can with the stakeholders alliance group, with the board, 464 00:43:18,580 --> 00:43:24,540 work with the district and so we are bringing everyone that we can to the table to understand 465 00:43:24,540 --> 00:43:30,600 what the issues may be and we're taking in new and innovative ways that we might be able 466 00:43:30,600 --> 00:43:36,800 to solve the problem that we have here in the district regarding the CREAC charge. 467 00:43:37,120 --> 00:43:38,580 So that is ongoing. 468 00:43:38,940 --> 00:43:43,460 We spent a lot of time in the month of December on that issue alone. 469 00:43:44,180 --> 00:43:51,140 Also in the month of December, for the George H.W. Bush State Funeral, I want to commend 470 00:43:51,140 --> 00:43:55,180 the number of our employees that were up in the middle of the night working with Secret 471 00:43:55,700 --> 00:44:03,700 Service, also with Homeland Security, H. Seema, and others to prepare for that funeral. 472 00:44:04,180 --> 00:44:10,680 There is a lot of preparation are in for this type of event in the district, and so I want 473 00:44:10,680 --> 00:44:17,120 to commend those employees for working with other agencies here in the district through 474 00:44:17,120 --> 00:44:17,980 the middle of the night. 475 00:44:18,400 --> 00:44:20,280 It was when a lot of our work has to be done. 476 00:44:20,380 --> 00:44:23,180 It cannot be done during the day, during the event. 477 00:44:24,840 --> 00:44:31,780 Also solar installation at the Brentonwood Reservoir in December, we did sign a development 478 00:44:31,780 --> 00:44:36,740 agreement with urban ingenuity and the National Housing Trust. 479 00:44:37,840 --> 00:44:43,240 This agreement allows DC Water to continue exploring the development of solar capability 480 00:44:43,240 --> 00:44:51,120 capacity at Brentwood Reservoir just across the street from Gallaudet University, which 481 00:44:51,120 --> 00:44:56,880 would provide direct revenue to DC Water to offset operations but also position DC Water 482 00:44:56,880 --> 00:44:59,560 as a champion for low income residents. 483 00:45:00,000 --> 00:45:09,660 By supporting the capacity of the DC community solar for all programs. This is a very important, 484 00:45:10,040 --> 00:45:17,140 I think, move on our part as an organization, so I commend the different parts of an organization 485 00:45:17,140 --> 00:45:22,640 that worked on making this happen. Green infrastructure, DC water has been 486 00:45:22,640 --> 00:45:27,820 granted substantial completion for the first green infrastructure project in Rock Creek, 487 00:45:27,820 --> 00:45:33,180 which comprises of approximately 24 acres that will be managed with green 488 00:45:33,180 --> 00:45:39,680 infrastructure during the 1.2 inch storm event. So we know that green 489 00:45:39,680 --> 00:45:43,940 infrastructure is very important to us not only as a district but to us as a 490 00:45:43,940 --> 00:45:48,200 utility and it is great that we've gotten to the point of substantial completion 491 00:45:48,200 --> 00:45:55,380 of that. Winter preparation continues. We have been fortunate knock on wood thus far 492 00:45:55,380 --> 00:46:00,940 that the temperatures have not dropped, but the men and women of this utility have really 493 00:46:00,940 --> 00:46:06,400 prepared for this winter as they do every winter, but it has been a great focus this winter 494 00:46:07,040 --> 00:46:14,460 for us to make sure that we're all of our equipment is up and running. I think Mr. Fitzgerald 495 00:46:14,460 --> 00:46:19,480 and his group for the work that they do on the fleet side to make sure that we have 496 00:46:19,480 --> 00:46:23,380 operable units and equipment for us as an organization. 497 00:46:23,860 --> 00:46:30,560 So the men and women, there's a lot of preparation for the winter and there's a lot of good work 498 00:46:30,560 --> 00:46:31,800 done during the winter. 499 00:46:32,880 --> 00:46:38,480 So I get to see every single one of the calls that are made from the emergency standpoint 500 00:46:38,480 --> 00:46:44,120 and the main breaks and so forth and so on and so we have a dedicated people out there making 501 00:46:44,120 --> 00:46:47,040 sure that these main breaks are resolved on a day-to-day basis. 502 00:46:47,040 --> 00:46:53,360 We received also an award Blue Plains did, DC Water received the Nakhwa Platinum Peak 503 00:46:53,360 --> 00:46:57,140 Performance Award for six years of 100 percent compliance. 504 00:46:58,120 --> 00:47:04,960 Blue Plains is definitely the gold standard in the industry and it continues to receive 505 00:47:04,960 --> 00:47:08,620 awards and will continue to receive awards as well. 506 00:47:08,620 --> 00:47:20,320 The financial group received also the 22nd consecutive clean unmodified audit opinion on 507 00:47:20,320 --> 00:47:26,140 the financial statement for the fiscal year ended in September 2018 so that group should 508 00:47:26,140 --> 00:47:31,380 be commended as well for the work that they've done from an audit standpoint or from a financial 509 00:47:31,380 --> 00:47:40,380 at this point. And last but not least, which we are very, very proud of, and Cory Gray 510 00:47:40,380 --> 00:47:48,780 and his work and his group have done. We will be in 2019 introducing an apprenticeship 511 00:47:48,780 --> 00:47:57,980 program here at DC Water. We know that we have an aging workforce. We have a number of individuals 512 00:47:57,980 --> 00:48:04,540 in DC that do want to work, and it's an opportunity for us to bring them in, in an apprenticeship 513 00:48:05,340 --> 00:48:11,560 capacity, and begin, and for them to begin to learn what goes on at the utility, what 514 00:48:11,560 --> 00:48:18,460 happens at this utility, and for them to begin to move into those roles at a different 515 00:48:18,460 --> 00:48:22,200 period as we continue to develop our employees. 516 00:48:22,200 --> 00:48:26,180 So, this is part of our whole team blue development program. 517 00:48:26,400 --> 00:48:32,160 So, the apprenticeship program is part of that driven by Mustafa Dozier and his team, 518 00:48:32,280 --> 00:48:37,640 as well so it all begins to come together for us as an organization and bringing people 519 00:48:37,640 --> 00:48:43,240 into the organization and training people up to become those next leaders in the organization. 520 00:48:44,180 --> 00:48:47,040 Mr. Chair, that concludes my report and thank you very much. 521 00:48:47,460 --> 00:48:48,300 Thank you very much. 522 00:48:48,300 --> 00:48:52,200 Next questions for the general manager regarding his report, board member March. 523 00:48:52,800 --> 00:48:57,080 I had a question about the, I'll come back to you Mr. Giancola. 524 00:48:58,140 --> 00:48:59,040 All right, thank you. 525 00:48:59,640 --> 00:49:03,820 About the employee lost time accidents, can you provide some background on that information? 526 00:49:04,840 --> 00:49:10,960 We, you know what, we had to talk, is who's in the room, they can give an explanation on that, Roger, please. 527 00:49:11,560 --> 00:49:16,560 We talked about this yesterday, so and Roger gave a great explanation for it. 528 00:49:19,180 --> 00:49:22,540 Well, Roger Brown, executive vice president for people in talent. 529 00:49:22,920 --> 00:49:27,240 You may be asking about the increase in the number or the cost as it relates to lost time. 530 00:49:27,960 --> 00:49:30,020 There's two factors that come into play there. 531 00:49:30,120 --> 00:49:35,460 One is, we recently just had an accident that involved three employees, so that number is going to increase 532 00:49:35,460 --> 00:49:37,600 because those individuals have yet to return to work. 533 00:49:38,300 --> 00:49:42,880 And there's also two or three employees that have had a previous accident that had it flare up. 534 00:49:43,360 --> 00:49:47,780 And so they've returned out of duty to get that taken care of or 535 00:49:47,780 --> 00:49:51,120 So we seek additional medical treatment so that counts as that's fine. 536 00:49:51,480 --> 00:49:58,180 So the numbers as we have either previous accident with a flare up or additional accidents that happen will cause that number to rise. 537 00:50:00,000 --> 00:50:29,840 The more recent accident are the employees going to be okay? I mean, I guess I was curious about. To my understanding, the last report I received is they're doing fine, they're doing well. They're just receiving additional therapy and treatment to get themselves back to full operational. And I guess I'm wondering about just follow up in terms of preventing or what we need to do to ensure that doesn't happen again. Yeah, so it's my understanding. I don't know the specifics. I do know that there's a current investigation. 538 00:50:29,840 --> 00:50:35,720 and undergoing. Our employees were in my opinion, did the right thing. They just happened 539 00:50:35,720 --> 00:50:41,000 to be the recipient of the accident. And so our staff does a phenomenal job of trying 540 00:50:41,000 --> 00:50:46,380 to do preventive measures through trainings, through stretch and flex in the mornings, 541 00:50:46,920 --> 00:50:52,020 through a proactive measures and discussions that they have in their huddles before they go 542 00:50:52,020 --> 00:50:58,140 out for the day. So as these things happen, we do an after-action of the investigation 543 00:50:58,140 --> 00:51:01,660 and go back to that group of employees who has been involved. 544 00:51:02,260 --> 00:51:04,880 Her staff members have been involved so they understand what happened 545 00:51:04,880 --> 00:51:06,900 and then how we prevent that from going forward. 546 00:51:07,560 --> 00:51:08,100 Thank you. 547 00:51:08,400 --> 00:51:08,920 Welcome. 548 00:51:09,840 --> 00:51:10,520 Thank you, Roger. 549 00:51:10,780 --> 00:51:10,900 Yes. 550 00:51:11,120 --> 00:51:11,800 Mr. Giancola. 551 00:51:13,380 --> 00:51:14,140 Thank you. 552 00:51:15,220 --> 00:51:18,220 Mr. Gattas, on page 42 of the briefing, 553 00:51:19,220 --> 00:51:20,240 recruitment activity. 554 00:51:20,440 --> 00:51:23,360 I noticed that we're still pretty high vacancy. 555 00:51:23,360 --> 00:51:32,640 I would call, we have 1,200 or so employees, 131 vacancies, or so to start a December, 556 00:51:33,120 --> 00:51:34,340 that's over 10%. 557 00:51:34,340 --> 00:51:39,680 So I'm just kind of curious, is there some effort to reduce that to a more manageable 558 00:51:39,680 --> 00:51:41,680 level like 5%, 7%. 559 00:51:41,680 --> 00:51:51,700 There is, we are addressing that as we speak, we, I don't know exactly how to say it, but 560 00:51:51,700 --> 00:51:53,760 But we are addressing that. 561 00:51:53,860 --> 00:51:57,240 I think that you will see a lower number in the future. 562 00:51:58,600 --> 00:52:04,240 We do recognize that as something that does jump off the page for us. 563 00:52:04,440 --> 00:52:05,880 And so we are reckoning. 564 00:52:05,960 --> 00:52:08,360 We are addressing that, Mr. Jekola. 565 00:52:09,360 --> 00:52:09,940 All right. 566 00:52:10,100 --> 00:52:10,360 Thank you. 567 00:52:10,600 --> 00:52:10,920 You're welcome. 568 00:52:13,360 --> 00:52:14,060 Ms. Much? 569 00:52:14,420 --> 00:52:18,860 I had a quick follow-up to the discussion about open positions. 570 00:52:19,040 --> 00:52:22,180 Are we finding that there are particular areas or disciplines? 571 00:52:22,180 --> 00:52:26,800 or what's the cause of perhaps the vacancies? 572 00:52:26,800 --> 00:52:28,740 Is it just the time that it takes for the process? 573 00:52:30,080 --> 00:52:33,100 The best way that I can answer that, 574 00:52:33,180 --> 00:52:34,500 being the new guy at the table, 575 00:52:35,280 --> 00:52:40,420 is this is a budgeting exercise at the end of the day 576 00:52:40,420 --> 00:52:41,540 when you get done with it. 577 00:52:42,060 --> 00:52:45,560 We have a number of positions that have remained open 578 00:52:46,080 --> 00:52:47,560 for a long period of time, 579 00:52:48,100 --> 00:52:50,620 and as we developed the 2020 budget, 580 00:52:50,620 --> 00:52:58,220 We're addressing a number of these issues, and I think when you see the 2020 budget, 581 00:52:58,820 --> 00:53:02,900 you will see that the vacancies have been addressed at that point in time. 582 00:53:03,380 --> 00:53:04,560 Matt, you want to add something to that? 583 00:53:05,160 --> 00:53:07,440 No, I'm just echoing your comments, pardon me. 584 00:53:07,640 --> 00:53:08,400 Just echoing your comments. 585 00:53:08,580 --> 00:53:10,600 As part of the budget, we've looked at every single vacancy. 586 00:53:10,780 --> 00:53:17,400 We've sat down with the executives across the organization and have evaluated every single open position. 587 00:53:17,400 --> 00:53:21,460 and as the General Manager said, you'll see a recommendation in the budget next month. 588 00:53:22,140 --> 00:53:27,520 And if I could add, the other piece that is, this is the vacancies that you see are 589 00:53:27,520 --> 00:53:34,760 partly my fault as well, so I will take the blame in that before we fill a position, 590 00:53:35,380 --> 00:53:42,280 I am asking that we justify, and so I am looking at every single action, I have to sign 591 00:53:42,280 --> 00:53:48,180 I don't want every single position before we actually go out in the crew. 592 00:53:48,880 --> 00:53:54,040 And so I think that's the fiscal, the responsible thing that we should do, especially in the 593 00:53:54,040 --> 00:53:56,360 crunch that we are from an affordability standpoint. 594 00:53:57,160 --> 00:53:59,840 And so that is part of it is my fault. 595 00:54:00,040 --> 00:54:03,100 So we are slow to fill them, not on purpose. 596 00:54:03,820 --> 00:54:11,060 But there is a detailed process that I am asking our leadership team to go through before 597 00:54:11,060 --> 00:54:14,640 or we actually ask for a position to be filled. 598 00:54:20,400 --> 00:54:25,020 So, Gattas, can you speak about the apprenticeship program, who are some of your partners and 599 00:54:25,020 --> 00:54:26,360 how are you marketing in the community? 600 00:54:26,960 --> 00:54:27,500 It's Corey. 601 00:54:27,700 --> 00:54:28,700 It's Corey here today. 602 00:54:29,900 --> 00:54:37,680 Corey, you want to step up and talk about that program, and Mr. Brumfeld's question wants 603 00:54:37,680 --> 00:54:39,480 to know who are some of the partners that we have, 604 00:54:42,010 --> 00:54:43,150 and if you want to give anything else 605 00:54:43,150 --> 00:54:45,770 about the program, because it is an exciting program, so thank you. 606 00:54:45,770 --> 00:54:51,110 So good morning. So we have been working pretty closely with our Department of Employment Services 607 00:54:52,330 --> 00:54:55,010 Both we have to register the program. So that was done through 608 00:54:55,610 --> 00:54:59,470 DC Financial Council. The target is to hire district residents 609 00:55:00,000 --> 00:55:06,220 So much like we did with Water Works, we've identified our strategic partners. Most of high schools, D.C. 610 00:55:06,260 --> 00:55:12,100 ideal school, Wilson school, a few others, as well as D.C. D.A.S. itself as a referral 611 00:55:12,100 --> 00:55:17,900 source. So the idea would be that the city would identify candidates, sympathy to D.C. 612 00:55:17,980 --> 00:55:23,760 Water for consideration through our HCM process, we would then return them. The training itself, 613 00:55:23,760 --> 00:55:27,120 we've identified five areas to start for our apprenticeship. 614 00:55:27,580 --> 00:55:32,440 The first is, in no particular word, I guess, plumbing, mixes heating, ventilation, and air 615 00:55:32,440 --> 00:55:32,840 conditioning. 616 00:55:33,420 --> 00:55:39,140 Quality assurance with our fleet department, wastewater, water services, and sewer services 617 00:55:39,140 --> 00:55:39,600 utilities. 618 00:55:39,920 --> 00:55:44,640 And so the idea would be we would have two to three apprentices per each of those areas. 619 00:55:45,060 --> 00:55:49,620 They were followed the standards, 2,000 hours of LJT, coupled with 144 out of them. 620 00:55:49,620 --> 00:55:52,380 And I think, actually, 150 hours of classroom training 621 00:55:52,380 --> 00:55:54,840 that they'll do after they've completed their two, 622 00:55:54,980 --> 00:55:57,920 after their work day, we are working 623 00:55:57,920 --> 00:56:00,040 to identify the classroom provider. 624 00:56:00,980 --> 00:56:03,800 There will be an RFP, there will be issues to secure that. 625 00:56:04,640 --> 00:56:07,160 But we're looking to, partner, it's part of that 626 00:56:07,160 --> 00:56:08,880 with the University of the District of Columbia 627 00:56:09,360 --> 00:56:12,960 and Howard University to help deliver the classroom training. 628 00:56:13,480 --> 00:56:17,520 The team here, they'll be supervised by a trained form 629 00:56:17,520 --> 00:56:20,060 and supervisor, the managers and directors are also 630 00:56:20,060 --> 00:56:23,300 be trained because it's more than just kind of a job. 631 00:56:23,980 --> 00:56:25,840 At this point, we're trying to make, we're making sure 632 00:56:25,840 --> 00:56:28,080 that we're taking on members of the lung folk, 633 00:56:28,080 --> 00:56:30,380 the folk who are not necessarily used to working 634 00:56:30,380 --> 00:56:32,480 in this environment, but we're providing 635 00:56:32,480 --> 00:56:34,780 with them the necessary wraparound services in addition 636 00:56:34,780 --> 00:56:37,380 to their job and a clash and training. 637 00:56:37,500 --> 00:56:40,240 And that's also where the city is going to provide support 638 00:56:40,240 --> 00:56:42,900 for some of the wraparound services that they may need. 639 00:56:45,650 --> 00:56:46,270 Thank you, Mr. Gering. 640 00:56:46,410 --> 00:56:46,910 Appreciate it. 641 00:56:49,540 --> 00:56:53,040 Any other questions for the general manager? 642 00:56:56,830 --> 00:57:04,950 Okay, moving along, next on to our contracts, consent items, joint use, approval to exercise 643 00:57:04,950 --> 00:57:11,470 option year three for Carter and Carter Enterprises, and then number two, second one is to exercise 644 00:57:11,470 --> 00:57:15,210 option two of contract with the electric motor and contracting MC. 645 00:57:16,070 --> 00:57:19,310 Can I get a motion to approve the consent items, joint use? 646 00:57:19,310 --> 00:57:20,570 So moved. 647 00:57:21,110 --> 00:57:21,910 Is there a second? 648 00:57:23,390 --> 00:57:24,390 Any discussion? 649 00:57:25,170 --> 00:57:26,130 All in favor say aye. 650 00:57:26,490 --> 00:57:26,670 Aye. 651 00:57:27,170 --> 00:57:27,550 All opposed? 652 00:57:28,690 --> 00:57:29,670 Motion passes. 653 00:57:31,130 --> 00:57:33,010 Consent item non-joint use. 654 00:57:33,230 --> 00:57:36,590 Approved to execute a change order with the Fort Meyer Construction Corporation. 655 00:57:37,230 --> 00:57:40,250 Can I get a motion from a district member to approve the consent item? 656 00:57:41,010 --> 00:57:41,630 So moved. 657 00:57:42,410 --> 00:57:42,890 Second. 658 00:57:43,350 --> 00:57:43,810 Second. 659 00:57:44,310 --> 00:57:45,350 Any discussion? 660 00:57:46,090 --> 00:57:46,910 All in favor say aye. 661 00:57:46,910 --> 00:57:52,390 I opposed, no opposed, the consigned item for joint use is approved. 662 00:57:53,510 --> 00:57:58,090 On our agenda is an executive session, but I don't believe we're going to, that's needed today. 663 00:57:58,910 --> 00:58:05,930 So with that, I want to thank you, thank everyone, and especially again, Mr. Majep, and 664 00:58:05,930 --> 00:58:07,950 then Mr. Paterson with your last meeting. 665 00:58:08,190 --> 00:58:11,070 Thank you for your service, and everyone have a great week.