PHX Water, Wastewater, Infrastructure and Sustainability Subcommittee Meeting – February 6, 2019


>>Mayor Williams: GOOD MORNING, EVERYONE. WELCOME TO THE WATER, WASTEWATER, INFRASTRUCTURE AND SUSTAINABILITY SUBCOMMITTEE. WE HAVE ANY PUBLIC THAT WISHES TO SPEAK? ARE YOU ABLE TO INTRODUCE THE STUDENTS?>>WE HAVE, I THINK, FIVE STUDENTS. FROM BAY SIS OF SCOTTSDALE WHO CAME DOWN FOR A GOVERNMENT PROJECT. THEY ARE GOING TO WATCH THE MEETING AND THEN THEY’RE GOING TO FOLLOW UP WITH QUESTIONS IF THEY HAVE ANY. REALLY HAPPY TO HAVE THEM HERE. IT’S ALWAYS GREAT TO SEE YOUNG PEOPLE PARTICIPATING IN THE PROCESS. DID SOME INTERVIEWS WITH CUB SCOUTS LAST WEEK. APPRECIATE YOU GUYS BEING HERE VERY MUCH.>>THANK YOU FOR BEING HERE. NEXT ON OUR AGENDA ARE MINUTES OF THE MEETING OF DECEMBER 5th. ANY CORRECTIONS, AMENDMENTS OR MOTIONS?>>I WILL MOVE TO APPROVE.>>SECOND.>>Mayor Williams: I HAVE A MOTION AND A SECOND. ALL IN FAVOR PLEASE SAY AYE. MOTION CARRIES UNANIMOUSLY. PUBLIC WORKS FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM, ARE WE DOING ANY PRESENTATIONS? ANYONE HAVE ANY QUESTIONS ON THIS? OKAY. NEXT ITEM IS ARIZONA MUNICIPAL WATER USERS ASSOCIATION THIS ANNIVERSARY, AND I AM HONORED TO SERVE ON THE AMWA BOARD QUITE A WHILE BUT WE WANT TO TALK A LITTLE ABOUT AMWA, WHO ARE THE MEMBERS, WHAT DO YOU DO AND YOU CAN TALK ABOUT HOW SUCCESSFUL YOU HAVE BEEN.>>OKAY. THANK YOU, MADAM CHAIR, AND MEMBERS OF THE SUBCOMMITTEE. MY NAME IS WARREN 10Y, EXECUTIVE DIRECTOR FOR THE ARIZONA MUNICIPAL WATER USERS ASSOCIATION CHECK, AND IT’S GOOD TO BE WITH YOU THIS MORNING TO TALK ABOUT WORKING TOGETHER ON WATER, ESPECIALLY CONSIDERING THAT LAST WEEK THE GOVERNOR APPROVED THE DROUGHT CONTINGENCY PLAN AND OUR PARTICIPATION IN THAT, THE STATE’S PARTICIPATION IN THAT, AND THIS IS ONE MORE EXAMPLE OF COLLABORATING TO KEEP THE GLASS FULL. IT’S A NEVER-ENDING EFFORT TO MANAGE OUR WATER. AND SO HERE IN ARIZONA WE HAVE LONG RECOGNIZED THAT WE LIVE IN AN ARID STATE AND, THEREFORE, WE BETTER RING OUT EVERY DROP OF WATER THAT WE CAN, BECAUSE WE UNDERSTAND THAT WATER IS THE FUEL FOR OUR WAY OF LIFE AND FOR OUR ECONOMY. BACK IN 1969, 50 YEARS AGO, CITY LEADERS OF PHOENIX JOINED WITH FOUR OTHER VALLEY CITIES TO FORM OR ESTABLISH THE ARIZONA MUNICIPAL WATER USERS ASSOCIATION, OR AMWA, AND THIS IS BECAUSE THEY RECOGNIZED THAT WATER DOES NOT FLOW ACCORDING TO POLITICAL JURISDICTION, AND IT WOULD BE A LOT BETTER TO WORK TOGETHER ON WATER POLICY ISSUES AS THEY COME UP, AND BY DOING THAT AND ESTABLISHING A STRONG FOUNDATION WITH WATER, WE HAVE A THRIVING AND GROWING ECONOMY. SO TODAY AMWA CONSISTS OF 10 CITIES THAT SPAN THIS VALLEY FROM SUPERSTITION MOUNTAINS TO THE WHITE TANK MOUNTAINS, AND TOGETHER THE AMWA CITIES PROVIDE WATER TO 3 1/2 MILLION PEOPLE. THAT IS MORE THAN HALF OF THE STATE’S POPULATION. WE ALSO PROVIDE WATER TO THE BUSINESSES AND INDUSTRIES THAT ARE KEY TO THIS STATE’S ECONOMY. WE ARE LINKED TOGETHER, AND IF ONE CITY IN THE VALLEY IS EXPERIENCING A WATER PROBLEM, THEN IT’S PERCEIVED THAT WE’RE ALL HAVING A WATER PROBLEM AND, THEREFORE, THAT’S THE VALUE OF BEING ABLE TO WORK TOGETHER IN THE FORUM KNOWN AS AMWA. DURING OUR 50 YEARS AMWA HAS PLAYED AN IMPORTANT ROLE IN FINDING SOLUTIONS FOR MANY OF OUR STATE’S WATER CHALLENGES. A FEW OF OUR ACCOMPLISHMENTS INCLUDE PLAYING A SIGNIFICANT ROLE IN THE PASSAGE OF THE 1980 GROUNDWATER MANAGEMENT ACT, WHICH WE SEE IN THE BOTTOM PHOTO WHERE GOVERNOR BABBITT WAS SIGNING THAT ACT. THE GROUND WATER MANAGEMENT ACT HAS PROVIDED A SECURE FOUNDATION FOR MANAGING THE STATE’S WATER FOR 40 YEARS. WE WORKED TO SECURE AN AGREEMENT BETWEEN APS AND OUR CITIES TO PROVIDE RECLAIMED WATER TO COOL THE PALO VERDE NUCLEAR POWER PLANT. AMWA HELPED DEVELOP THE CONCEPT OF UNDERGROUNDWATER STORAGE LEGISLATION THAT ALLOWS FOR CITIES TO STORE WATER IN AQUIFERS AND USE IT WHEN NEEDED AS SEEN IN THE TOP PHOTO. WE HELPED ESTABLISH THE ARIZONA WATER BANKING AUTHORITY, WHICH PUTS ARIZONA’S COLORADO RIVER WATER TO USE BY STORING IT FOR A DRY DAY. AS SEEN IN THE PHOTO ON THE LEFT, AMWA CITIES SUPPORTED THE MODIFICATION OF THE ROOSEVELT DAM TO INCREASE THE STORAGE CAPACITY OF ROOSEVELT LAKE. AND WE WORKED WITH OTHER ARIZONA WATER USERS AND THE COLORADO RIVER BASIN STATES TO ADDRESS CHALLENGES IDENTIFIED IN THE 2012 COLORADO RIVER BASIN STUDY. MOST RECENTLY AMWA WORKED WITH ITS MEMBERS ABOUT HOW BEST TO IMPLEMENT THE DROUGHT CONTINGENCY PLAN IN ARIZONA, WHICH WAS ACCOMPLISHED LAST WEEK. ONE OF AMWA’S ONGOING AND MOST SIGNIFICANT CONTRIBUTIONS IS IN DEVELOPING A WATER CONSERVATION ETHIC HERE IN THE PHOENIX METRO AREA. FOR NEARLY 40 YEARS AMWA HAS MANDATED CONSERVATION REQUIREMENTS — I SAID THAT WRONG — FOR NEARLY 40 YEARS ARIZONA HAS MANDATED CONSERVATION REQUIREMENTS FOR MUNICIPALITIES. IN RESPONSE, AMWA BROUGHT TOGETHER WATER CONSERVATION PROFESSIONALS FROM EACH OF OUR MEMBER CITIES AND ESTABLISHED A REGIONAL WATER CONSERVATION PROGRAM. THROUGH THIS COLLABORATIVE EFFORT, THE CITIES HAVE SHARED EXPERTISE AND RESOURCES, LAUNCHING PROGRAMS AND DEVELOPING MATERIALS AND HELPING RESIDENTS REDUCE WATER USE. EACH OF OUR MEMBERS HAS PROGRAMS AND RESOURCES TAILORED TO BEST ASSIST THEIR RESIDENTS AND BUSINESSES TO USE WATER EFFICIENTLY. THE 10 AMWA CITIES HAVE COLLECTIVELY IMPLEMENTED MORE THAN 300 WATER CONSERVATION BEST MANAGEMENT PRACTICES. THE BENEFIT OF THESE EFFORTS IS SEEN HERE IN PHOENIX WHERE SINCE THE LAST — SINCE THE YEAR 2000 THE CITY HAS GROWN BY A QUARTER MILLION PEOPLE, YET RESIDENTIAL USE HAS DECLINED BY 12 1/2 PERCENT. TODAY PHOENIX AREA WATER PROVIDERS ARE RECOGNIZED LEADERS IN WATER CONSERVATION ACROSS THIS COUNTRY. THIS IS HOW WE HAVE HELPED TO STRETCH THE 11% OF ARIZONA’S WATER THAT THE AMWA CITIES USE AND AVOID NEEDING TO IMPOSE WATER RESTRICTIONS DURING THIS PROLONGED DROUGHT. TODAY AS WE FACE SHORTAGES ON THE COLORADO RIVER AND DEAL WITH OTHER WATER SUPPLY ISSUES, COOPERATION AMONG MUNICIPALITIES IS ALL THE MORE CRITICAL. GOING FORWARD, AMWA REMAINS A FORUM TO EDUCATE AND INFORM OUR MEMBERS AS WELL AS THE PUBLIC AND DECISION-MAKERS, TO COLLABORATE, TO FIND SOLUTIONS, AND THEN TO ADVOCATE ON BEHALF OF OUR MEMBERS. A KEY FUNCTION IS FACILITATING DISCUSSION AMONG THE CITIES. THE AMWA BOARD OF DIRECTORS IS COMPRISED OF THE MAYOR OR A COUNCILMEMBER FROM EACH OF OUR MEMBER CITIES. THIS MEANS WE’VE ELECTED CITY OFFICIALS WHO ARE INFORMED AND ENGAGED IN WATER ISSUES HERE IN THE STATE AS WELL AS NATIONALLY. WE ARE FORTUNATE TO HAVE MAYOR WILLIAMS SERVING ON OUR BOARD OF DIRECTORS. WE DO A LOT OF OUR WORK WITH THE WATER RESOURCES ADVISORS AND CONSERVATION SPECIALISTS FROM EACH OF OUR CITIES, SINCE THEY ARE THE TROOPS ON THE GROUND DEALING WITH WATER RESOURCES AND CONSERVATION. AS ISSUES ARE IDENTIFIED AND POSITIONS DEVELOPED, WE THEN PRESENT THEM TO OUR MANAGEMENT BOARD, WHICH IS COMPRISED OF WATER UTILITY DIRECTORS OR DEPUTY CITY MANAGERS FROM EACH OF OUR CITIES. THE MANAGEMENT BOARD THEN MAKES RECOMMENDATIONS TO THE AMWA BOARD WHO THEN MAKES THE DECISION ON HOW WE MOVE FORWARD. AS WE COLLABORATE AND AGREE ON ISSUES, AMWA THEN ADVOCATES FOR ITS MEMBERS AS WE WORK WITH THE ARIZONA DEPARTMENT OF WATER RESOURCES, THE SALT RIVER PROJECT, AND THE CENTRAL ARIZONA PROJECT. OUR MOST IMPORTANT ADVOCACY EFFORT IS TO BE ABLE TO REPRESENT OUR MEMBERS WITH ONE VOICE AT THE LEGISLATURE. WATER IS A STATEWIDE CONCERN. WHAT HAPPENS IN ONE PART OF THE STATE HAS A RIPPLE EFFECT THROUGHOUT THE REST OF THE STATE. FOR THIS REASON, AMWA WORKS TO ENSURE THE STRONG FOUNDATION WE HAVE WITH THE GROUNDWATER MANAGEMENT ACT AND THE ASSURED WATER SUPPLY RULES AND ARE ALWAYS LOOKING TO STRENGTHEN THOSE. WE RECOGNIZE THE BENEFITS GAINED FROM PLANNING, MANAGING AND INVESTING IN OUR WATER. SO WE ARE AN ACTIVE VOICE AT THE LEGISLATURE ADVOCATING FOR OUR MEMBERS. AMWA WILL ALSO CONTINUE TO SHINE A BRIGHT LIGHT ON WHAT PHOENIX AND OUR NINE OTHER MEMBER CITIES DO DAY IN AND DAY OUT TO PROVIDE WATER. THE AMWA CITIES COLLECTIVELY EMPLOY MORE THAN 2500 PROFESSIONALS WHO ENSURE WATER IS DELIVERED EVERY DAY OF THE YEAR TO RESIDENTS, BUSINESSES AND INDUSTRIES. BECAUSE WE PROVIDE WATER [INAUDIBLE] TO BUSINESSES AND TO LARGE INDUSTRIES, THEY ARE ABLE TO BE THE ENGINE THAT DRIVES ARIZONA’S $320 BILLION GDP. WHAT BINDS THE AMWA CITIES TOGETHER IS OUR AWARENESS THAT WE MUST CONSTANTLY BE PLANNING AND INVESTING IN OUR WATER RESOURCES AND INFRASTRUCTURE. AMWA APPRECIATES WORKING CLOSELY WITH THE CITY OF PHOENIX THESE PAST FIVE DECADES. WE ARE PROUD OF WHAT WE HAVE CONTRIBUTED IN THE LAST 50 YEARS TO WATER MANAGEMENT THAT HAS GUARANTEED THIS VALLEY’S ECONOMIC SUCCESS AND OUR WAY OF LIFE. LOOKING FORWARD TO THE NEXT 50 YEARS, AMWA IS COMMITTED TO CONTINUE TO COLLABORATE WITH PHOENIX AND OUR OTHER MEMBERS TO PROTECT ARIZONA’S WATER RESOURCES AND TO ADVOCATE FOR THE WISE MANAGEMENT OF THOSE RESOURCES FOR THE BENEFIT OF THE VALLEY AND FOR ALL OF ARIZONA, AND I APPRECIATE VERY MUCH THIS OPPORTUNITY TO MEET WITH YOU THIS MORNING.>>Mayor Williams: FIRST OFF, THANKS — COULD YOU TALK A LITTLE BIT ABOUT HOW YOU INTERFACE WITH THE CENTRAL ARIZONA PROJECT AND THEIR GOVERNING BOARD?>>WHAT WE DO IS WE CLOSELY FOLLOW THEIR VARIOUS MEETINGS AND THEIR COMMITTEE MEETINGS. WE ALSO INTERACT WITH THE BOARD MEMBERS, A NUMBER OF THEM. WE TRY TO MEET WITH REGULARLY TO TALK AND SHARE ISSUES AS WELL AS TRY TO WORK WITH THEIR STAFF ALSO. AND SO WE BASICALLY ARE TRYING TO ALWAYS BE THERE TO MAKE SURE THAT THEY UNDERSTAND THE IMPORTANCE OF THEIR DELIVERING OUR COLORADO RIVER WATER TO OUR MEMBERS.>>Mayor Williams: I WILL MAKE A COMMENT. WE HAVE STAFF THAT WORKS VERY CLOSELY TO MONITOR THEIR POLICIES AND THEIR FUNDS AND THE BOARD AND WARREN HAS LED THE CHARGE TO GO OUT AND CHALLENGE SOME OF THEIR TOPICS TO MAKE SURE THAT OUR RATE PAYERS ARE NOT PAYING FOR SOMETHING THAT WE SHOULDN’T BE, AND I REALLY APPRECIATE THAT. BECAUSE I KNOW STANDING UP TO THAT BOARD CAN BE CHALLENGING. THEY THINK THAT’S THEIR OWN WATER. WE ALL KNOW THAT. WE’RE JUST LUCKY TO RECEIVE IT EVEN THOUGH WORK FOR US. BUT THANK YOU FOR WHAT YOU DO. ANYONE ELSE HAVE ANY QUESTIONS?>>Vice Mayor Waring: IT MIGHT BE AN UNFAIR QUESTION, BUT PARDON MY COLD, SO OBVIOUSLY THERE IS A LOT OF FOCUS ON THE VOTE I THINK LAST THURSDAY NIGHT AT THE LEGISLATURE [INAUDIBLE] INSTRUMENTAL IN HELPING GET THAT DONE. BUT NOW THERE’S SOME CONVERSATION THAT MAYBE IT’S NOT REALLY DONE. CAN YOU EXPLAIN — IF IT’S NOT AN UNFAIR QUESTION FOR YOU PERSONALLY. WHY IS THERE — YOU KNOW, IT SEEMS LIKE, ARIZONA, NO, WE DID WHAT WE NEED TO DO. CALIFORNIA DIDN’T. THE FEDS SEEM TO BE SIDING WITH YOU HAVE MORE WORK TO DO. IT HASN’T BEEN CLEAR TO ME IN WHAT I HAVE READ ABOUT THIS.>>I WOULD BE GLAD TO TALK ABOUT THAT. IT IS UNFORTUNATE THAT RECLAMATION PULLED US IN WITH CALIFORNIA AND NOT HAVING EVERYTHING QUITE DONE. THE IMPERIAL IRRIGATION DISTRICT HAS NOT YET SIGNED ON IT TO AND I THINK THAT NEEDS TO BE THE FOCUS AND THE PRESSURE OF GETTING THEM TO SIGN ON TO DCP. I THINK THE REASON WHY RECLAMATION WAS STILL INCLUSION ARIZONA IS THERE ARE A NUMBER OF AGREEMENTS THAT STILL MUST BE WORKED THROUGH. THOSE WERE AGREEMENTS THAT WE ALL KNEW NEEDED TO BE WORKED ON AND TO GET DONE, AND IT’S JUST A MATTER OF GOING THROUGH THE PROCESS AND DOING THAT, AND THESE WERE AGREEMENTS THAT WERE — WOULD ALLOW FOR US TO ENSURE WATER IS STORED IN LAKE MEAD BY ARIZONA HE AS WE ARE TRYING TO MITIGATE. THE THING THAT NEEDS TO BE EMPHASIZED AND WHY ARIZONA NEEDS TO BE ACKNOWLEDGED IS WE’RE THE ONLY STATE THAT NEEDED TO GO TO OUR LEGISLATURE TO GET THE VOTE, AND THAT WAS SUCH A HUGE HURDLE THAT WE CLEARED ON THURSDAY, AND THAT IS SOMETHING THAT WE SHOULD CELEBRATE AND IT SHOULD BE ACKNOWLEDGED, AND I’M CONFIDENT THAT THE GENERAL POPULATION RECOGNIZES THAT HERE’S ANOTHER EXAMPLE OF WHERE WE FINALLY, AFTER MONTHS OF A LOT OF HAND WRINGING AND HEATED DISCUSSIONS, DID PULL TOGETHER AND GET IT DONE. BUT REALLY THE BURDEN RIGHT NOW –>>Vice Mayor Waring: THERE WERE ONLY THREE NO VOTES, RIGHT?>>YES.>>Vice Mayor Waring: THAT’S A LOT OF LEGISLATORS TO ONLY HAVE THREE NO VOTES.>>Mayor Williams: AND IT WAS A MAJOR ACCOMPLISHMENT.>>IT WAS A MAJOR ACCOMPLISHMENT. SO I THINK THAT’S WHY RECLAMATION WAS STILL SAYING, WELL, THERE’S STILL WORK TO BE DUB IN ARIZONA, IN REFERENCE TO THOSE AGREEMENTS, WHICH I VIEW AS, HEY, WE’RE WORKING ON THAT, WE KNEW THAT WAS GOING TO BE NEEDED ANYWAY. LET’S PUT THE PRESSURE ON CALIFORNIA TO LINE UP NOW.>>Vice Mayor Waring: SO MY UNDERSTANDING OF WHAT’S GOING ON FROM WHAT YOU JUST TOLD ME IS THAT WE VOTED — THE LEGISLATORS VOTED ON A FRAMEWORK FOR ARIZONA. SOME DETAILS NEED TO BE WORKED OUT. NOT UNEXPECTED GIVEN HOW MANY PARTIES ARE INVOLVED AND SO FORTH. EVERYBODY KNEW THAT GOING IN. THAT’S NOT THE FED’S PROBLEM. IT’S THE STATE’S PROBLEM TO GET IT WORKED OUT, VOTING FOR IT, SIGNING IT. WE’RE ASSURING THEM THAT’S GOING TO HAPPEN. WITH CALIFORNIA, I THINK, WERE THEY ASKING FOR ANOTHER 200 MILLION OR SOMETHING? THEY’RE NOT EXPECTING LIKE ARIZONA TAXPAYERS TO PAY FOR THAT OR SOMETHING. WHERE DOES THAT MONEY COME FROM AND HOW IS THAT ARIZONA’S PROBLEM?>>THE IMPERIAL IRRIGATION DISTRICT SPECIFICALLY IS WANTING TO SEE SOME TYPE OF RESTORATION FOR THE SALTON SEA, AND THAT’S WHERE THEY WERE ARGUING THERE NEEDS TO BE SOME TYPE OF MONEY, WHETHER IT BE STATE OR FEDERAL MUST NOT — CALIFORNIA’S MONEY OR FEDERAL MONEY TO HELP WITH THAT. IT’S THEIR ISSUE THEY NEED TO ADDRESS. THE REASON WHY WE’RE CONCERNED, OR WE HOPE THAT THEY GET THAT DONE, IS SO THAT DCP CAN BE IN PLACE, WHICH WE JUST WORKED TO GET DONE. WE NOW NEED TO HAVE CALIFORNIA BE PART OF THAT. SO HOPEFULLY THAT WILL ALL TAKE PLACE. THERE’S A NEW SOFT DEADLINE OR A DEADLINE OF MARCH 4th, AND WE’LL KEEP DOING OUR PART HERE IN THE STATE AS WELL AS KEEP PUTTING WHATEVER PRESSURE WE CAN ON CALIFORNIA TO DO THEIR PART.>>Vice Mayor Waring: SO THE DETAILS THAT STILL NEED TO BE WORKED OUT ON ARIZONA’S PART NEED TO BE DONE BY MARCH 4th.>>YES. AND I DON’T –>>Vice Mayor Waring: NO REASON TO BELIEVE THEY WOULDN’T BE?>>CORRECT.>>Vice Mayor Waring: IS THAT SOMETHING THE LEGISLATURE HAS TO VOTE ON OR THEY HAVE GIVEN THE FRAMEWORK AND NOW IT’S THE DETAILS?>>Mayor Williams: ANY OTHER QUESTIONS? REAL QUICK BEFORE YOU LEAVE, ONE OF THE THINGS YOU DIDN’T MENTION IS YOU HAVE A WEBSITE AND A BLOG THAT TALKS A LOT ABOUT CONSERVATION AND WHAT YOU’RE DOING AND HELPFUL HINTS. COULD YOU GIVE A BRIEF –>>BE HAPPY TO. OUR WEBSITE IS AMWA.ORG, AND WE HAVE EVERY MONDAY MORNING A BLOG THAT TALKS ABOUT VARIOUS ISSUES, WHETHER IT BE DCP OR TALKING ABOUT HOW YOU CAN USE WATER MORE WISELY WITH YOUR LANDSCAPE, AND SO IF — WE WILL CHECK AND MAKE CERTAIN ALL THE COUNCIL MEMBERS ARE ON THAT SO THAT MONDAY MORNING YOU’LL SEE AN EMAIL FROM US AND YOU CAN REMEMBER TO TAKE A LOOK AT THAT BLOG.>>Mayor Williams: AND YOU EVEN HAVE CLASSES FOR LANDSCAPERS?>>WE WORK WITH ALL OF THE CITIES WITH A PROGRAM THAT — CALLED SMARTSCAPE THAT HELPS LAND LANDSCAPERS GO THROUGH A PROGRAM SO THAT THEY MANAGE YOUR LANDSCAPE IN A WAY THAT USES WATER AS EFFICIENTLY AS POSSIBLE.>>Mayor Williams: VERY GOOD. THANK YOU VERY MUCH.>>THANK YOU.>>Mayor Williams: AND FOR ALL THE HARD WORK YOU DO FOR US.>>THANK YOU.>>Mayor Williams: ITEM 4, ENERGY RETROFIT PROJECT. WE’RE GOING TO SAVE SOME MONEY.>>YES. GOOD MORNING. I’M GOING TO TALK ABOUT THIS ENERGY SAVINGS PROJECT AND ALTHOUGH IT MAY SOUND RATHER MUNDANE, THE IDEA ISN’T USUALLY TOP OF MIND FOR PEOPLE, BUT IT IS AS YOU INDICATED A PRETTY SIGNIFICANT OPPORTUNITY, AND HOW THIS REALLY CAME ABOUT AND WHY, JUST 10 YEARS AGO, THERE WAS REALLY NO STANDARD NATIONALLY FOR HOW BUILDINGS MEASURED ENERGY USE. EVERY CONSULTANT USED DIFFERENT METHODS TO MEASURE AND ONLY SINCE PORTFOLIO MANAGER WAS RELEASED BY DEPARTMENT OF ENERGY THAT HERE IN THIS CASE NEW YORK MEASURED 50,000 BUILDINGS, PUBLIC AND PRIVATE BUILDINGS, CITYWIDE, AND THERE WAS AN AMAZING — MOST PEOPLE DID NOT UNDERSTAND OR HAVE ANY IDEA THAT THIS IS ENERGY USE PER SQUARE FOOT AND SHOWING HOW SOME BUILDINGS, IN OTHER WORDS, THE ONES IN THE FIFTH PERCENTILE TO THE 95th PERCENTILE, SO FIFTH BEST TO FIFTH WORSE WERE FOUR, FIVE, SIX TIMES MORE ENERGY USE. IMAGINE A BUILDING USING FIVE TIMES MORE ENERGY THAN IDENTICAL OTHER BUILDINGS. THIS IS ALL BUILDINGS NORMALIZED FOR OCCUPANTS BUT YET STILL PRETTY SIGNIFICANT. AND THIS IS WHERE YOU REALLY WANT TO KNOW HOW IS YOUR BUILDING REALLY PERFORMING COMPARED TO OTHER BUILDINGS AND LOOK AT YOUR BUILDINGS AND SAY, WE COULD CUT OUR ENERGY USE IN HALF, OR EVEN MORE THAN THAT. AND SO LOOKING AT OFFICE, REALLY WELL PERFORMING BUILDINGS VERSUS POOR PERFORMING BUILDINGS, FOUR-AND-A-HALF TIMES MORE ENERGY THOSE BUILDINGS ARE USING. WE SHOULD HAVE A LOOK AT THIS. SO IT’S OUR BACKGROUND, OUR POTENTIAL WITH DEPARTMENT OF ENERGY AFTER THIS WAS OUT, WE JOINED THE BETTER BUILDINGS CHALLENGE TO SAY ACROSS ALL OUR BUILDING STOCK BY 2020 WE’RE GOING TO HAVE AN AVERAGE 20% SAVINGS ACROSS ALL OF OUR BUILDINGS. IT’S IN ABSOLUTE TERMS. AND SURPRISINGLY CITY OF PHOENIX, OUR UTILITY BILL, JUST ELECTRICITY AND NATURAL GAS, $65 MILLION. WE PAY THAT EVERY YEAR TO THE UTILITY COMPANIES FOR ENERGY. SO 20% OF THAT, $13 MILLION A YEAR, WE COULD SAVE BY JUST ACTUALLY REDUCING OUR ENERGY USE BY 20%. IMAGINE THAT OVER A 10-YEAR PERIOD. ALL OF A SUDDEN THIS MUST NOT DAY TOPIC IS COMPARABLE TO OTHER BIG PROJECTS THE CITY UNDERTAKES. SO WE HAVE CONTRACTS NOW IN PLACE WITH FIVE ENERGY SERVICE COMPANIES, AMERESCO, TRAIN, HONEYWELL, [INDISCERNIBLE] AND THERE WE HAVE ASSIGNED DIFFERENT GROUPS OF BUILDINGS, AND THEY’RE NOW GOING THROUGH THEM. HERE IS OUR PROCESS THAT THEY WILL PROVIDE — THEY PROVIDE AT NO COST A PRELIMINARY AUDIT. THEY’LL LOOK AT TOTAL ENERGY USE, WHAT EQUIPMENT DOES IT HAVE, LOOKING AT IT, AND WE HAVE SORT OF A 20-PAGE TEMPLATE THEY’LL FILL IN AND LOOK AT THE BASIC OVER DESKTOP BUSINESS CASE FOR HOW MUCH WE COULD POTENTIALLY SAVE. IF THAT PIQUES OUR INTEREST AFTER THEY COME BACK WITH A GROUP OF BUILDINGS, WE’LL ENGAGE WITH THEM AND A CONTRACTOR TO DO AN INVESTMENT GREAT AUDIT WHICH WILL GET DETAILED COSTING, PRICING, GUARANTEED PRICING, PLUS THIRD-PARTY OVERSIGHT. PLUS THERE WILL BE A REVIEW TO MAKE SURE SAVINGS ARE IN LINE, COSTS ARE IN LINE WITH ENERGY BEST PRACTICE. WE’LL BE REVIEWING THE AUDIT, ALL THE DIFFERENT STAGES, MAKING SURE ARE YOU LOOKING AT BUILDINGS — WE DON’T WANT TO CONSIDER BUILDINGS WE’RE NOT PLANNING ON OCCUPYING FOR A LONG TIME. AS WELL WE’RE GOING TO DETERMINE IN ADVANCE HOW THEY’RE GOING TO MEASURE AND VERIFY THAT WE HAVE THE SAVINGS SO THAT WE DON’T DISPUTE AFTERWARDS TO SAY, WELL, WE’RE USING THIS METHOD. SO WHAT GUARANTEED AAMOUNT WE’LL HAVE. AFTER THAT WE WILL PROCEED WITH ENERGY RETROFITS. AND I’LL TALK NEXT ABOUT HOW THE FUNDING IS WORKING ON THESE. IT’S UNIQUE AND DIFFERENT THAN HOW WE WOULD NORMALLY DO IT. SO FOR ALL PROJECTS THEY HAVE AN ENERGY SAVINGS GUARANTEE BY THE ESCO. SO IF THE BUILDINGS DON’T SAVE IN A GIVEN YEAR, THEN THE ESCO NEEDS TO CUT US A CHECK FOR THE DIFFERENCE. SO WE’RE GUARANTEED WE’LL GET THOSE SAVINGS. AND EACH OF THE ESCOs HAVE COMMITTED TO DOING THAT THAT THE OTHER ONE IS PROJECTS ARE FULLY REPAID OUT OF ENERGY SAVINGS. SO OTHER PROJECTS USE LOTS OF OTHER FUNDS BUT IN THIS CASE 100% COMING OUT OF OPERATING COSTS, ENERGY SAVINGS, AND NOTHING ELSE, AND AS WELL ALONG WITH THAT, IT’S A POSITIVE CASH FLOW EVERY YEAR. SO IT’S NOT LIKE, OKAY, AFTER YEAR FIVE, WE’RE GOING TO REALLY RAKE IN THE DOUGH. EVERY YEAR WE NEED TO ACTUALLY SAVE MONEY IN ORDER FOR A PROJECT TO GET APPROVAL TO GO AHEAD. LASTLY IT’S DIFFERENT FROM A CAPITAL PROJECT IN THAT THIS IS NOT PAID BY TAXPAYERS. IT WILL BE PAID OUT OF THE ENERGY SAVINGS. SO THE BANK WILL FINANCE PROJECTS BASED ON THE SAVINGS GUARANTEE OUT OF OUR OPERATING BUDGET. SO A NORMAL CAPITAL PROJECT, BUILD A LIBRARY, THE BOND IS REPAID THROUGH — COMES TO TAXPAYERS. THIS IS JUST OUT OF OPERATING SAVINGS THAT THEY ARE GOING TO BE REPAID. SO A LITTLE DIFFERENT. SO HOW WE’RE STARTING AND WHERE WE ARE IS WE’RE STARTING WITH [INAUDIBLE] CONVENTION CENTER, WATER, AVIATION, AND THERE ARE ALREADY PRELIMINARY AUDITS UNDER WAY IN ALL THREE AND THEY WILL COME BACK TO US WITH RECOMMENDATIONS AND THAT WILL BE KIND OF THE START OF THIS. THEN AFTER — AFTER WE HAVE SOME INVESTMENT AUDITS COMPLETE, WE’LL GO AHEAD WITH SOME PROJECTS TO SHOW HOW EXCITING THE OPPORTUNITY IS, WHAT KIND OF OF SAVINGS WE’RE GOING TO SEE. THIS IS CERTAINLY THE FINAL SLIDE. I WILL ENTERTAIN ANY QUESTIONS YOU HAD ABOUT THIS.>>Mayor Williams: QUESTIONS? NO? WELL, THANK YOU VERY MUCH. WE LOOK FORWARD TO COMING BACK AND GETTING A REPORT ON HOW IT’S MOVING. I THINK THE NEXT IS OUR ONLINE MAPPING. WHICH I THINK THE COUNCIL ASKED FOR AND NOW YOU’RE GOING TO TELL US IF YOU PUBLISHED IT AND HOW.>>THANK YOU FOR HAVING US THIS MORNING. YES, AS YOU’LL RECALL, AS PART OF OUR RATE RECOMMENDATION PROCESS, CITY COUNCIL ASKED US TO LOOK INTO CREATING A WEBSITE THAT WILL MAKE IT MUCH EASIER FOR OUR CUSTOMERS TO SEE OUR CAPITAL PROGRAMS, WHERE THEY ARE IN THEIR NEIGHBORHOODS, WHAT THEIR PURPOSE IS, KIND OF NAVIGATE THROUGH WITH A LITTLE MORE TRANSPARENCY OF WHAT’S GOING ON IN OUR CAPITAL PROGRAM. RATHER THAN TRYING TO REINVENT THE WHEEL, WE ACTUALLY WENT OUT AND TOOK A LOOK AT WHAT SOME OF THE OTHER LARGE CITIES ACROSS THE COUNTRY ARE DOING, AND WE ACTUALLY FOUND A REALLY FANTASTIC WEBSITE THAT WE THINK MAYBE MIRRORS WHAT THE COUNCIL HAD IN MIND AND WE WANTED TO SHOW THAT TO YOU GUYS THIS MORNING TO SEE IF, INDEED, IT DOES MEET YOUR EXPECTATIONS. I’LL ASK ASSISTANT DIRECTOR TROY HAYES TIC TO US THROUGH THAT. WE ACTUALLY FOUND A FANTASTIC WEBSITE HOSTED BY THE SAN ANTONIO WATER SYSTEM. SO WE’LL TAKE YOU THROUGH THAT.>>WHAT WE HAVE UP ON THE SCREEN IS SAN ANTONIO’S WATER SYSTEM. IF YOU LOOK AT IT, IT’S BASICALLY COMMUNICATING OUT TO OUR CUSTOMERS AND CONSTITUENTS ABOUT WHAT’S GOING ON IN THE SYSTEM. IF YOU LOOK AT THEIRS, THEY HAD 57 PROJECTS CURRENTLY GOING ON IN THE WATER, WASTEWATER SIDE. IF YOU GO UP, IT’S TRULY TRYING TO COMMUNICATE THE BASICS OF WHAT WE DO AND — OR WHAT THEY DO, BUT FOR US, WHAT WE DO, AND SO THE FIRST TAB WE BROUGHT UP THERE IS ANSWERING WHAT. SO KIND OF GOING THROUGH WHAT INFRASTRUCTURE THAT WE HAVE. SAN ANTONIO IS A GROUNDWATER SYSTEM, SO THEY DON’T REALLY HAVE WATER TREATMENT PLANTS. BUT WE ENVISION LIKE OURS WOULD HAVE A PIPELINE COMPONENT, TREATMENT PLANT COMPONENT, TRYING TO DESCRIBE THE TYPES OF INFRASTRUCTURE WE HAVE, TRYING TO COMMUNICATE THE VAST SYSTEM WE ARE TRYING TO MANAGE HERE. THE NEXT ONE IS WHY. THERE AGAIN THEY HAVE INFORMATION GOING OUT TO THE CUSTOMERS ABOUT, WELL, WHY DO PIPES BREAK? WHY DO YOU REPLACE THEM? HOW DOES THAT WORK? AND SO WE WOULD ENVISION HAVING POP-UPS THERE THAT WOULD HAVE MORE OF A COMMUNICATION WHY DO WE INSTALL WELLS, WHY ARE YOU REHABILITATING TREATMENT PLANTS. THEN ALSO COMMUNICATING THE FUNDING ASSOCIATED WITH THOSE. THERE’S ALWAYS A BUNCH OF QUESTIONS ABOUT HOW ALL THIS WORKS. THE NEXT ONE THEY HAVE IS HOW. SO THIS PROJECT OR THIS PAGE THAT THEY HAVE IS REALLY GOING THROUGH, WELL, HOW DO YOU PRIORITIZE, HOW DO YOU DECIDE WHICH PROJECTS GO, HOW DO YOU DECIDE IF YOU’RE GOING TO INVEST IN TREATMENT PLANTS OR A PUMP STATION. SO THEY HAVE POP-UPS THERE THAT WOULD GO THROUGH THAT. THEN THE MOST IMPORTANT THING FOR OUR CUSTOMERS IS WHERE. SO THIS IS WHERE WE WERE LOOKING AT AND THIS IS SIMILAR TO WHAT STREETS HAD WHERE THEY HAVE OVERLAYS AND ALL THAT. THEY WOULD BRING UP A MAP. ON SAN ANTONIO IT BRINGS UP A MAP OF THEM AND THEN YOU WOULD CLICK ON A PIPELINE THERE, AND IT WOULD GIVE YOU A BASIC INFORMATION. IT WOULD SAY, HERE’S THE PROJECT, HERE’S THE NAME. IF YOU WANTED MORE, YOU WOULD CLICK DETAILS. AND IT WOULD SAY THIS IS A 2.7 MILE WATER LINE THAT’S GOING FROM THIS SUBURB SECTION TO THIS INTERSECTION. THE BUDGET IS $3 MILLION TO DO THAT. IT ALSO HAS ON THE BOTTOM THERE CONTACT INFORMATION. OUR ENVISION WITH A PRODUCT WE WOULD BE WORKING ON IS THERE WOULD BE AN ADDITIONAL BUTTON. AS ALL OF YOU KNOW WITH OUR PROJECTS IN THE RIGHT-OF-WAYS AND COMMUNITIES WE DEVELOP THESE INFORMATION SHEETS. IT’S TRULY TRYING TO GIVE INFORMATION OF STREET CLOSURES. AND SO WE WOULD HAVE ADDITIONAL INFORMATION PAGE IF THEY WANTED TO GO FURTHER WOULD IT GIVE INFORMATION SPECIFICALLY TO WHAT’S GOING ON. A LOT OF WHAT WE HAVE AND A LOT OF QUESTIONS WE HAVE, IT’S TRULY MOST OF THOSE ARE — HAVE BEEN ADDRESSED IN THESE SHEETS. AND THEN IF NOT, THEN IT WOULD BE FURTHER THAT THEY WOULD HAVE CONTACT INFORMATION GOING RIGHT TO THE PROJECT TEAM WITH SPECIFIC QUESTIONS. NOT GOING TO A CENTRALIZED COLLECTION AGENCY OR WHATEVER. IT WOULD GO RIGHT TO THE PROJECT TEAM WITH A SPECIFIC QUESTION THAT THEY COULD ADDRESS ABOUT EITHER NOISE OR ANYTHING ELSE THAT’S GOING ON IN THE PROJECT. AND THEN THEY THEN GO ON TO WHO, ADDITIONAL CONTACT INFORMATION. THE OTHER UNIQUE THING ABOUT AND SOME OF THE THINGS WE LIKED ABOUT IT, THEY TOGGLE BETWEEN WATER AND WASTEWATER, WHICH WE WOULD DO, BUT BECAUSE THIS WAS SIMILAR TO THE STREETS, IT ALMOST LOOKS LIKE IT COULD EXPAND OUT TO HAVE A STREETS COMPONENT OR OTHER TYPES OF CAPITAL IMPROVEMENT PROGRAMS WHICH THEY WANTED TO HIGHLIGHT. THEN IT WOULD BE AN INTERFACE FOR ALL CITY TYPE PROJECTS IF YOU HAVE A QUESTION. THAT’S KIND OF OUR THOUGHT. AS WE GO FORWARD THOSE ARE THE TYPES OF THINGS WE WOULD BE WORKING ON. BUT TALKING WITH KINI, IT’S THE SAME GEOREFERENCING INFORMATION HE HAS. IT’S THE SAME INFORMATION WE HAVE. SO IT DOESN’T APPEAR TO BE AS IF IT WOULD BE MUCH OF A CHALLENGE TO EXPAND IT OUT BEYOND THE WATER AND WASTEWATER DEPARTMENT. YOU CAN GO TO THE NEXT SLIDE. JUST SOME MOCK-UPS OF THINGS WE HAVE. SAN ANTONIO HAD 20 SOME PROJECTS GOING ON. CURRENTLY WE HAVE 142 WATER PROJECTS GOING ON IN THE CITY. SOME OF THE THOUGHT THAT WE HAD IN OUR SYSTEM IS MAYBE WE WOULD BREAK IT DOWN BY DISTRICT, THAT MAYBE THEN YOU WOULD HAVE — LIKE — HOW I LIVE IN DISTRICT 8 OR I LIVE IN DISTRICT 3, YOU WOULD BE ABLE TO CLICK ON THAT AND THEN GO FURTHER TO GET MORE INFORMATION. THERE AGAIN HAVING THE POP-UPS OF THE DIFFERENT WATER PROJECTS AND THEN TALKING ABOUT THE CAPITAL EXPENDITURES IN THOSE DISTRICTS OF WHAT WE ENVISIONED IN THE 10-YEAR OR ULTIMATELY AND THEN HOW MUCH WE HAVE SPENT SO FAR TO DATE. THAT’S REALLY WHAT DRIVES OUR RATES, IS REVITALIZING AND PUTTING MONEY BACK INTO THE INFRASTRUCTURE THAT WE CURRENTLY HAVE AND BUILDING FOR THE FUTURE. SO THIS IS KIND OF WHAT WE HAD KIND OF BUILDING OFF OF WHAT SAN ANTONIO HAD AND OBVIOUSLY AT THE END MAKING IT A PHOENIX TWIST ON THAT AND GIVING IT OUR FLAVOR AND COMMUNICATING OUT THE INFORMATION THAT WE THINK OUR CUSTOMERS NEED AND WANT.>>Mayor Williams: QUESTIONS? COMMENTS? I THINK IT’S A GREAT IDEA. HOW SOON DO YOU THINK YOU’LL HAVE IT RUNNING?>>YEAH, SO — WE’VE ENGAGED THE ENGINEERING FIRM OR CONTRACTOR THAT BUILT SAN ANTONIO’S TO TRY TO GET A FLAVOR FOR THAT. IT’S DEFINITELY SOMETHING WE THINK WE CAN GET DONE IN THIS CALENDAR YEAR. THE LOGISTICS OF HOW ALL THAT AND HOW EXPANDABLE AND HOW FAR WE WANT TO GO. BUT WE THINK IN THAT KIND OF A TIME FRAME, IN 2019, THIS WOULD BE SOMETHING THAT WITH A HE WOULD ROLL OUT, IF, OBVIOUSLY, AS WE –>>Mayor Williams: SOUNDS GREAT. DO WE HAVE TO PAY A LOT TO GET THIS PROGRAM?>>THAT IS ALSO UNKNOWN AT THIS TIME.>>Mayor Williams: OKAY. VERY GOOD.>>MORE TO COME ON THAT.>>Mayor Williams: WELL, THANK YOU VERY MUCH. KEEP US POSTED AND LET US KNOW HOW IT PROGRESSES.>>THANK YOU.>>Mayor Williams: DO OUR STUDENTS HAVE ANY QUESTIONS FOR US? COME ON UP HERE. YOU CAN SIT IN THESE CHAIRS. IF YOU HAVE QUESTIONS. YOU NEED TO GIVE US YOUR NAME AND THEN ASK YOUR QUESTION.>>[INAUDIBLE]>>Vice Mayor Waring: NO PRESSURE, BUT THIS IS ALL ON LIVE.>>Mayor Williams:>>MY NAME IS NATALIE.>>MY NAME IS MADURA.>>I’M KYRA MITCHELL. WE WOULD LIKE TO THANK YOU ALL FOR ALLOWING US TO SIT IN ON THIS MEETING AND HAVE A VALUABLE EXPERIENCE. IT WAS CERTAINLY INTERESTING. I LEARNED A LOT. OVERALL QUESTIONS, WE WOULD JUST LOVE IF WE COULD CONTACT SEVERAL MEMBERS OF THE SUBCOMMITTEE FOR FEW RESEARCH BECAUSE OUR GOVERNMENT PROJECT ENTAILS THAT WE NOT ONLY HAVE TO ATTEND A GOVERNMENT MEETING BUT ALSO RESEARCH THE TOPIC, CONTACT PEOPLE, GET A GENERAL IDEA OF THE [INAUDIBLE] AND IDEA OF THIS SUBCOMMITTEE.>>Mayor Williams: DID YOU WANT TO RESPOND?>>MAYOR, I WILL BE VERY HAPPY TO STAY IN TOUCH WITH YOU. I’M KAREN PETERS, DEPUTY CITY MANAGER. SO I WOULD BE VERY PLEASED TO TALK WITH YOU FURTHER, EVEN JUST AFTER THIS, OR IN THE FUTURE.>>Mayor Williams: AND YOU CAN ALWAYS CONTACT US. EMAIL.>>Councilwoman Stark: I ALSO THINK IT MIGHT BE INTERESTING TO LEARN ABOUT A CITY MANAGER FORM OF GOVERNMENT VERSUS HOW SOME CITIES HAVE A STRONG MAYOR FORM, AND THAT MIGHT BE SOMETHING THAT WOULD BE FASCINATING FOR ALL OF YOU TO LEARN ABOUT.>>THANK YOU SO MUCH.>>Mayor Williams: ANY OTHER QUESTIONS?>>NOT REALLY.>>Mayor Williams:, WELL, WE REALLY APPRECIATE YOU ARE COMING DOWN.>>Vice Mayor Waring: YOU GO TO BAY SIS SCOTTSDALE. THAT’S THE ONE RATED THE NUMBER ONE HIGH SCHOOL IN THE COUNTRY, RIGHT?>>RIGHT.>>Vice Mayor Waring: PEOPLE AT HOME MIGHT NOT KNOW ARIZONA HAS THE NUMBER ONE HIGH SCHOOL IN THE COUNTRY. THIS IS IT AND THEY GO TO IT AND THEY’RE FRESHMEN. THEY HAVE FOUR YEARS OF HARD WORK IN FRONT OF THEM. I WISH I WAS AS SMART AS THEY ARE.>>Mayor Williams: WE REALLY APPRECIATE YOU COMING DOWN AND TELL US IF YOU WANT US TO ANSWER ANY MORE QUESTIONS. IF WE CAN’T ANSWER, WE’LL GET YOU TO THE RIGHT STAFF PERSON THAT CAN. I’LL GIVE YOU WHATEVER MATERIALS YOU NEED. WE LOVE IT WHEN OUR YOUTH COME IN AND LEARN ABOUT THE PROCESS AND GETS INVOLVED. IT MAKES A DIFFERENCE. IT MAKES OUR WHOLE COMMUNITY STRONGER. THANK YOU VERY MUCH.>>THANK YOU.>>Mayor Williams: ANY PUBLIC? ANYONE ELSE THAT WISHES TO SPEAK? DO WE HAVE ANY FUTURE AGENDA ITEMS YOU WANT TO COVER? NO? IN THAT CASE, WE’RE ADJOURNED.

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