the I can't make it that hard. That's what we don't change. I know. I'm going to have to go to the mayor's office. This is not the meter two. He said he's going to teach us how to watch our water. We're meeting of the Bayer County water control and improvement district 10 is called to order at 6 o'clock. There is a quorum present. Would everyone please stand for the pledge of allegiance? I pledge allegiance to the flag of the United States of America and to the Republic, for which it stands, one nation under God, indivisible, with liberty and justice for all. the board will now correct or amend the minutes if needed and approve the minutes of the August meeting. Are there any corrections or amendments needed for the minutes as they are written. No. There aren't any? Okay. Is there a motion to accept the minutes is written? I'll make a motion to accept the minutes. I'll address the 15th, 2024. I'll second it. In motion. In seconded. All those in favor raise your right hand. There are no citizens to be heard. No, ma'am. Does any member of the board wish to remove any item I'm going to move to the board. Does any member of the board wish to remove any item from the consent agenda for discussion? No. Okay. Is there a motion? I like to make a motion to approve the consent items. Second. Motion didn't second it all those in favor raise your right hand. Our first item for individual consideration will be a presentation from performance service representative chip wood about automatic water meter system and possible funding for those, Mr. Wood. Good evening. Good evening. I gotta be honest, I didn't expect to get this quickly. I'm very proud. So I really appreciate you all for your opportunity. Let me share a little bit. I have a presentation that Miss Sandy is gonna pull up. There are a lot of slides. I don't want to waste Joel's time, but now that you have a ton of time, I feel like I'm going to do a little bit of leeway. I would love for this to, I just want to share about what we do and how we do it, why we do it, who we've done it with, and how we think we can help the utility But I also would strongly encourage you guys to stop at any time ask me any questions I'm happy because I've got three grandkids and life's great. So I'm just I'm easy going I've known Mr. Wallace for what 13 years now and so I probably should have been standing here a little bit sooner, but I think the time is right. And I'd love to help you guys out. Miss Sandy. Okay. A little bit about performance services. So we are, we're in 15 states. We are typically in the other 14 states. We are a design led design build company that excels with school districts and counties and other vertical buildings and remodels and things like that. We just, we do a really great job. What we did a little bit unique in Texas is we started to build a team that's centric with water. I've got 13 years of water experience, the team that is assigned to this particular opportunity. We probably have close to 100 years. There's three of us in particular that have 70 years experience in just water, whether it's water treatment, wastewater treatment, and or measurement of water, which is a little bit of, you know, what my background is. And so, A, we're qualified to at least look at and investigate and see if there's something we can do to help. But there's a lot of numbers on this slide. The thing I'd like to focus on is the one that's at the very bottom. Our number one focus is the customer experience. It's not just lip service, but... Next slide. Sorry. I think it is the next slide. So, is anyone from Motor with the Net Promoter Score? So it's like an online, you know, everyone hates surveys, but it's something that they've sampled or surveyed, you know, up to, let's say, the surveys up to 10 people or the numbers 100. It's how people think or opine on particular companies. And I think if you click next, it'll start showing some of the companies. So, do you all see the images? Yes. Okay, so everyone recognizes most of these images, some more than others. And so, this could be really interactive where we could have fun and say, okay, who's your favorite? What do you think condescores or what do you think costescores? We won't go through that. Because we begin with the end in mind, meaning your experience, because when you have a wonderful experience, more than a couple things happen, we've done a good job, you have a great experience. Miss Alexandra might go work at a different utility. She has wonderful experience once to hire us. And so on that first slide, it may have mentioned that we have over 50% of our business is repeat. And it's because we just under-promising over produce, it's part of our culture we do it. I hate to keep banging the drum about us because we're so awesome and I love it. I'm drinking the cool air I've been here for three years but it's just wonderful place to work but it's because we treat people like the way we want to be treated and so if you click next you'll see in a more time. So our Net Promoter Score is 88 and then you'll see the scores of like Amazon's 25, Samsung's surprisingly 67. That went through me off. I figured Costco would be high but we are elite. There's another metric called a CX score customer experience score. We are leaps and bounds higher than a construction company which is what we do. I mentioned at the beginning we do a lot of design build ground up stuff in we're headquartered in Indiana but our Texas branch is built on and around water. Next slide please., then I think one more. Okay. So this is the how we do it. The legislation was written mostly around schools, but it defines energy as, or energy savings contracts as electricity and or water, how you measure electricity and or water. That could be how the utilities currently measuring water with you know We'll just say antiquated meter technology. So there's moving parts as they slow down over time They're you're measuring less water the resident is still getting you know if they pumped a hundred gallons The residents getting the hundred gallons the meter might be measuring 80 of those gallons. So it's great for the end user, but the utility or the city isn't getting that revenue. Excuse me. Yes, a second. Could you explain to the board design bill just to make sure to forward understand what a design bill process is? I will do my best because I do water stuff. So we're a design built company. So there is the way I understand it. Thank you, sir, for the opportunity to step put my foot in my mouth. So design build is a way to procure projects when you're doing ground up things. It also could be remodeling or something. So if you're building a new fire station, you're remodeling the fire station. Traditionally, it's always been design bid build. So you pay an engineer, you have an in-house engineer, they'll design the new fire station. OK, we've got the design. OK, let's put a procurement team together, write the specifications. Okay, is this what we want? Sure, it's what we want. Then we go out for bid and bid it out and then it's typically lowest bid or, you know, occasionally best value. But what happens in that scenario is let's say something was missed along the lines on the design. Maybe it wasn't specifically like, okay, we need this type of chiller, we need these AC units or we said lights, we didn't specify LED versus halogen or some other antiquated light technologies, more applicable for meters. Okay, we want a new meter system. Well, you don't say that could be the one that's an antiquated meter that's got moving parts. It's not going to be accurate for the life of the meter, but it says meter. It's technically a meter, so you may be forced because you don't have those specifications. To design build, you put together a team and say, okay, this is what we're actually looking for. So you have one partner that manages the entire process. So you would hire a company like ours. So, okay, we want to do the fire station. And we know it needs new AC units, new chillers and lights and things. We might want to do a solar rooftop and some other stuff. And that scenario is sort of the design as I understand it. So if you have better knowledge than I do, I'd love for you to try and end. But the way I understand it is you would hire us and then we would work with, we would have all the procurement of, okay, we're going to go out to three different vendors for the AC units, three different vendors for solar The the city or the utility gets to pick what we want But let's say we know for sure that it's spec'd in we want this train AC system we know it's got a 18-month lead time Because you've hired us. We don't have to wait for that full design stuff. We might need 30% plans for the engineer to pencil them out. We can go ahead and order that product and get started on it. So it's a much faster delivery method. And one of our value propositions, which is this is where I'm glad you asked, because this is what I do know. Regardless whether it's design build or you hire us for an energy savings contract, which is what I would recommend for the water replacement or the measuring water through AMI, we don't allow for change orders. So, um, what again, why I love working for this company is, you know, we're going to guarantee the performance of whatever we do. We're going to guarantee that there's no upfront dollars because we're gonna do a lot of work to make sure it fits within this legislation. And the third thing we guarantee is no change orders on our end, because after we do all this work up front, and we're gonna come back to you and say, okay, here's the final scope of work. We may have looked at full distribution monitoring, we may have looked at all the lighting, actually lighting in here looks great, but we may have, we'll look at a bunch of different things. I'm pretty acutely focused on our hyper focused on the ground in the meters, how we measuring the water. Are there any distribution leaks? How can we tackle the water loss? Because water is so precious as we all know. I mean, it's great. It's coming down from the sky today. But we, if we come back and say, okay, here are all the things we think or we've seen. There may be a lot of the list of like 10 things. Y'all might say, okay, well, we only want to do one, two, and seven. Perfect. Once we land on one, two, and seven, we've given you final pricing. We can't come back and say, oh gosh, you know what, we missed some vault work at the golf course because they've got a big, you know, a two-inch concrete vault or, you know, a big vault and it's going to cost 20 grand effects. We missed that. Can you get, can you pay us an extra 20 grand like a change order? Because that's what happens in design bid build. As you have change orders, even construction manager at risk, there's a lot of change orders. We, in our why you hire us is because we're gonna sit here, pound on table, no change orders, unless Mr. Wallace or the board says, hey, you know what, we actually would like to do this a little bit differently than we all agree upon. If that comes up, then yes, we will appease the board and the staff and accept your change order but we will never come back to you and say oh gosh we didn't know they go high this other this whole street we missed the meters we can't come back and say we need you to pay for that so that that is on us but we do a lot of work up front to make sure that when we come back up here and say we want your handed marriage we would love for you to hire us and we figured out a way that this can be a self-funding project is through legislation when we do that we do all that work up front because when we know at that point we know we've gotten good information from the staff we've done good site work to see, okay, there's there's an opportunity here that this can be a self-funding project. Self-funding means whatever we find is going to pay for itself over 20 years. So the legislation, it's pretty wordy, but it's basically identifies the decrease in water loss, increase in revenue, you know, basically using tomorrow's savings to pay for today's project, instead of waiting for tomorrow's savings and then paying for the project at tomorrow's price. So you're going to recommend some saving projects that's going to eventually increase our water revenue. Absolutely. And so that increase in revenue and the decrease in operating expenses is, those are all dollars, right? So anything we can quantify, and then it says, okay, well, if the cost of the system is, you know, let's say, we'll just throw a number of, you know, $30. It's not, it's like, you know, over $2 million. But we'll just use $2 million. Let's say it's $2 million. Well, that $2 million, it's probably a little bit over, but that $2 million not only pays for the system, it pays for us, and we guarantee per legislation that it's got to pay for itself every year by at least $1. If it doesn't, we're on the hook. So, again, because we take pride in this, we have had customers, I don't know, Mr. Ross, if you're familiar with it, it's a central buoy water supply up in New Boston near the Texarkana border. They tried a different meter technology that was the first of, you know, they went to a full cellular system and not to get the weeds, but they wanted to hire us to help them. And so we did and it went through several iterations because it couldn't get right. Well, we got to a point where they're going to miss their principal and interest payment because we guarantee we have to install it and then you don't make a payment for the firm. You got to see a four years worth of savings before you make your first payment. Well, we would miss that because the meter technology wasn't right. So we had to pay. So, but I share this and thank you for the question because it gives me an opportunity to share this is I guarantee if Mr. Wallace or any of the board wants to call the customer he'll say exactly that we would be in a world of her if we had to try to do this on our own and so yeah so we take you know great pride and and and it's again it's we kind of, we want the talk. I mean, I'm butchering that, but I think you know what I'm saying. So if we do not increase our revenue by at least $1, then we don't make a payment for that first year is it what you're selling to me? I'm completely butchered that. Thank you for asking that question. So, you know, let's move on. Let me see if I can find. Those are some examples. Yeah, we get screened through here. I want to answer Miss Alexander's question. Just tell me. Keep going. There may be like at the very end, like a hidden, because I could probably speak to it, but I think I could show it better. Can you go back to the next page you just left? Could you, what you're talking about here is not one particular meter. It's what would fit us best. One branch, right? Well, you guys get to pick. Yeah. So this is this is one solution. I think you guys have seen this. We I used to work for badger meter. I don't work for a meter vendor. We we have installed we're doing this same system in Blanco and Marshall, Texas. We did it in Unis, New Mexico. And those are just the ones that we're doing. But we do other brands and many other cities. And when Miss Sandy was screaming through there, you know, there's several examples where we have badger systems, master systems, census systems, camp strip systems, deal systems, deal an itron systems. So, we are truly vendor agnostic. And not every system, I mean, there aren't many wrong answers, Mr. Wallace, but the camp strip one is really good. We like it. It's the last two that we've partnered with and it's because you know it's it's really good technology. My nose battery operated? They are all over. All over and they have living parts? They do not have any moving parts. Did you get like a red dot when the battery is bad or how do you know? It'll show up in the analytics and one of those screens it'll it'll flag for an alert. And those that would flag. So we've had we they've had these in the ground in I think they're a European or a German company. They've had not a German company. They're a headquarters somewhere else. But they've had the ultrasonic technology. The States is way behind moving to static meetering with no moving parts. Camstrup and a couple others have been Europe selling these for many years. Camstrup in particular is others have been in Europe selling these for many years. Camstrup in particular is one of the few meter brands that they've only sold this ultrasonic technology so they are considered world leaders with this particular technology. I don't have to tell you that because you guys saw that I think a couple months ago when they were here. So I echo that to your point about the batteries. Each one of those components has a battery right underneath that odometer. The meter battery technology, battery technology and metering is significantly improved with the advent or the inclusion of lithium. And so like in Kennedy, Mr. Ross, you had the NICAD, like old battery technology and those were still lasting like 16 plus years. We highly anticipate with similar climate that these are going to last probably the full 20 years. When we get into the financial zone, we're only going to, the legislation allows us to look at the full 20 years and say, okay, well, if we're capturing, let's say, $100,000 in benefit of this project every year. We could use that $100,000 over a 20-year period. So, people now we've got $2 million to play with that's considered a benefit of the project. We would never recommend funding a project like this for that long because of that exact reason. Because the batteries are likely going to last 20 years. We would rather you only have a principal and interest rate. And you can shorten that payment depending on how the financials look. But we would only recommend doing it for 15 years because it gives you just a ton of revenue those last five to start preparing for what's next. And do you have to have a tower for transmission? On these you do today, they are coming out with a cellular option in the future. If you have to have a tower, what would it be located? We would likely recommend, I mean there's how many elevators? We have three. Three. Probably, you probably need one. I would recommend two for redundancy. And depending on where they're located, I think that would be more than enough coverage. But we would do all of that as part of our, you know, I mentioned earlier, we guarantee that there's no front dollars. We guarantee the performance. We guarantee no change orders. Part of that performance is that this system's going to work at least 98.5% of the time on any given day, on average. And so if it's not performing that way, then yeah, there, we quantify what that delta is. We do two things. We fix it to make it right, and then we make up the difference of the revenue that you've lost. And so part of that problem in central Bui was the meters were working fine. They were using a brand new cellular technology, and it wasn't reporting. So we had to go out and read those meters. So that cost us time, money, labor. But it also was a strain on the utility. So because they were still seeing the revenue coming through the meters, because they're getting the reads, but they weren't experiencing what they bought. And so we then in turn made the payment form for that one year. You have a local office or you have a local office. I'm here. I've actually lived in San Antonio 52 and a half years of my life. And I just moved to Spring Branch, which I still kind of consider San Antonio. So it's a maybe a little close. I have a question. Yes, ma'am. My meter sits right here. My meter sits right here. My neighbor sits right here. Would there be an interference or how this would read? No, ma'am. Have you ever seen that? I have not. You have an experience on that, Dave? No. I mean, it's not. It's not. It's leading edge technology. It's not leading edge. So it's not like something new that has never been done. And in that aspect, it's simple RF communication. So I'd like in it to you guys staying right next to each other. You're not hearing each other. You're not getting his phone calls and he's not getting errors. It's similar wavelengths that are connecting to one of the two infrastructure towers. They're called maybe a gateway and they're collecting all that data and they're bringing it back to the cloud. Well, sometimes you can get it intercepted, you know. You know what? Anything's possible these days. I mean, but it's highly unlikely. And I have never seen it I've been in my meters here in this their neighbors. Yeah, I mean, it's that close. Yeah But your meter will have a particular ID number and it will have its own frequency They might be on the same frequency, but it'll it'll be yours and if you being on the board might get a little bit extra attention and so we'll we'll look at it and say okay you know is this is this your read you know you want to confirm we'll go to the house we'll check and so not only am I here but the one of the two vendors that presented you guys also lives in San Antonio. So you guys are fortunate to have your folks here. Like I was one of our other projects using this technology, actually two. One was in New Mexico and one was in Marshall, Texas, which is six hours away. It was a phone with both of them today, but you know, if I need to get there, it's going to take me if I need to get there, it's going to take me a little bit to get there. You're engineer, one of your engineers that's on our team also lives in San Antonio. Project manager lives over by Elmo Ranch, by SeaWorld, still in San Antonio. So it might take a minute to get across down, but we have you guys covered. So this all be downloaded to the office and they can read it from there. Actually it'll be in the cloud. And as long as you have internet access you will have access to the system. And you as an end user you will have a portal for you to log in to see your own consumption. Make sure I understand this. Yes sir. On the salt square and the recording. Is that your salt square or is it camshaft or bad I mean it's camshaft. In this scenario you pick let's say you picked camshaft then it would be camshaft software. So we are we're the hammer that the utility swings and says we want this. We want that. We go back to if it was a decrease our revenue by $1. $1. I didn't forget that we hadn't put up in in that. Let's see if we can find that. Keep going. Keep going. We're going to be on this slide for like two more clicks. Let's see. Nope. Keep going. Tagnav it. It's a hidden slide. Okay. I'll do my best. So if you can imagine a spreadsheet, and I could, if I can drive, can I, can I come play a little bit? Sure. I think it'll be easier. Right there. Yeah. Can I come play a little bit? Think of it easier. We're going through all of them. Yeah. Let's go. I'll go back. Here we go. I'm going to go. That'll give you all of them. This one. So he's the middle man. He's the middle man. Up in this remote, favorite. He's a salesman. He's a salesman. Oh, I didn't know. He's trying to sell his money. Can I see this. Let me see this. Okay. Let me see this. Okay. Let me see this. Okay. Let me see this. Okay. Let me see this. Okay. Let me see this. Okay. Let me see this. Okay. Okay. Let me see this. Okay. Okay. Okay. Let me see this. Okay. Okay. I'm going to do my best. Legislation allows us to go out 20 years. So if this is an imaginary spreadsheet, we look at the same thing. We're going to do a lot of things. We're going to do a lot of things. We're going to do a lot of things. We're going to do a lot of things. We're going to do a lot of things. We're going to do a lot of things. We're going to do a best. Legislation allows us to go out 20 years. So if this is an imaginary spreadsheet, we look at your total revenue. And then your water losses between 10 and 15 percent, Mr. Wallace. 10 percent roughly. Right. So and that's 10 percent adjusted. If we say if it's adjusted because there are flushing and some leaks, there's some non-revenue water that's difficult to capture, we can't take credit for that. So if we say, OK, at that 10%, if we changed out all of your meters, and we believe that the meter accuracy is, we'll call it 5%. Let's say we think we can get 5% back from the 10% and we have to prove this out. So we prove this out through testing our meters. But let's say, again, it's, if we use just simple numbers, it say it's, a million dollars is your water and sewer revenue. If it's 5% in the scenario, we think it's 5% against that million dollars. I'm not that good at math, but whatever that number is, and let's just let's call it, it's probably not a million states $50,000. So $50,000 is the benefit in one year of doing the project. Then we take that $50,000 over the full 20 years because we feel like the meters are guaranteed to be accurate as long as the battery works. We think it's going to work 20 years, but we at least got 15. Legislation allows us to get 20. There's a benefit of using that 5% and we can add inflation to it every year because you know what was it last year 7 or 8% we would never recommend going more than one or two. We usually use one to be super conservative but we would take that $50,000 is a benefit of doing the project in that given year. There are other benefits of not having to send guys out to go read the meters and there may be reads and rereads. So those are extra truck rolls. The AWWA which is the Water Authority and then the Texas Water Development Board. They've identified that every truck roll is on average about $80. We would then work with the staff, okay, what does this look like? How many re-reads do y'all have? And then we would quantify what is it costing you today to read the system? So we already know that we're gonna increase the revenue by 5% against the water and sewer revenue. If we chain, put in the new meters, we also know that it's going to eliminate the need for reads and rereads. We're not recommending replacing people, because we know that every utility in the state and the country, specifically in the state, are understaffed. There's a ton of things for them to do. We never, ever recommend displacement of personnel. That would be really easy for us to go up here and say, hey, you put in this new technology. It works on its own, fire your staff, and we show how it pays for itself. We're a little bit more humane than that. We never consider replacement of personnel as part of the benefit of doing the project. So I'm trying to get back to the numbers of mis the project. So I'm trying to get to back to the numbers of misanters. Alex enter if it's 5% that we say the operating and maintenance savings let's call that another $50,000 just in this example. So we're getting $50,000 from the meters accuracy. We're gaining that by billing it. We're gaining another $50,000 by not having to read the meters currently as we're doing today. So that scenario, here we go. Awesome. All right, you're the best. Thank you so much. Saved by the bell. All right. Can y'all read this? It's a bit of an eye chart. Yes, it can. Okay, I'm in need of like drive here. All right, so if you look under year one, actually we can start at the top. In this scenario, our engineers already look at some of the information that Lynn and the staff have given us. So we've seen the latest water development board, water loss reports, we've seen the number of accounts. Is that actually a discrepancy? How many accounts are there? About 2,500. 2,500, okay. We started to pencil out because one report we saw was like 3,500 and it was like, it did what has the smell test based on the revenue. So 2,500 is the of number of views here. The investment grade audit, I haven't talked about that yet, but that's part of this process. Let's put a pin in that third party review, I'll talk about that in a minute. Construction period, we think it's going to take us eight months from start to finish. At very conservatively to do to change out all your meters. It'll likely be once we get rolling quicker than that. And then the total construction cost is showing at 2.1 to 5 million. So if we go down to year one, so you see the years in the first column, the additional savings. This is where I was mentioning the 5% against your water and sewer revenue. So in this scenario, year one, which is the second line under construction, you've had a full year, we're saying, okay, based on the 5% against your water and sewer revenue and whatever data our engineers put together that we're getting a benefit of $93,910 and this is these are just preliminary numbers we will prove this out in the first year then we're also saying the operating and maintenance savings are, and that's what I mentioned, the READs, rereads, truck rolls, things like that. Those savings are $120,822. Capital cost avoidance. So this one can be, this is what, in this scenario, what our engineer Kyle has said This is what he believes this the utilities contribution will be so this this averages like just over for that many connections Like maybe a dollar fifty a month would be if you if you broke it out per Per customer that might be considered like a technology fee our goal would be to make that capital cost number a zero But at the very minimum we have to make this work financially to fit the legislation So if the utility says okay, well sure we're We're okay to pass long a technology fee of $1.50 or $2.00 to the customer. Then because they're actually getting something, everyone's going to get a portal. They'll be able to access all the data. It's purely up to the utility, but our goal would be to make that nothing, because we want this to be fully self-funding without any participation. We want the technology to do it alone. But when we stand up in front of you today, we want to show you all the different scenarios in the event that it doesn't work. Any questions so far? What is your total cost? And this one is 2.124 million. That right. But the whole green, so this is getting Miss Alexander, your original question about the $1. The whole green center, so if we go down the line number one, the year one is $250,000, $750, $732. That's the benefit of doing this project if everyone agrees to the additional water and sewer revenue, the operating maintenance, and the capital cost of woodings. So if we all agree that those inputs are correct, then that $250,000 actually if we go down one more year because this is where the dollar comes in If we go down to the second year where it's 95,000 dollars in year one if we go to column seven and it says 255,000 dollars do we see that? Okay, well the the next column eight is the debt service so it's the 2.1 the the top right number or I guess it's like the right above where it says cash loads, 2.1, 2.4. It's that number against 5% interest, roughly what we've been seeing for projects like this. So if we take that against the interest rate, that would be the annual debt service payment every year. We also take any consideration, well, okay, that's just making that payment. But what does it cost to run the new AMI system? And so we believe that the new AMI systems also gonna have likely software costs of roughly $27,000. The third year, every year. And that's, I mean, we've seen, it depends on the technology. We've seen some significantly higher, even for utility the size. So it's actually pretty fair. What's neat about, like in Mr. Wallace may recall this when he had the old badger system but a lot of these older Metering systems that had some technology It was the technology was still Based on site you had to have a server you had to make sure it had the latest software updates If there was a new feature or functionality that was introduced That was either shipped to you guys through a phone driver or a disk to be installed. Now all the technology, any of those software updates are managed in the cloud. Anything's brand new is already pushed up. The new technology also allows updates to be pushed down from the cloud into those meteringpoints. So it's pretty smart. It's almost like smart city stuff. But going back to these numbers, so the annual service cost is the cost of the software to the meter. That is paid to the meter system. By the way, we don't make a single dollar on the financing. We will help find the financing, but we don't mark it up in adding in numbers. We get paid purely on the front end where it's the cost of the meters. I can show you, we offer and we offer. We show you open book pricing. So you'll be part of the selection who installs the meters, which meters you want. You'll see that pricing. And then we'll show you, here's what the note is, here's what our legal fees are. And our legal fees being, there's bonding and there's insurance and stuff like that. Marketing, we overcommunicate to the utility by pushing out, we'll help with crafting, messaging for like social media posts and things like that. But we also, more doing installs, we're sending out postcards, mailers, flyers for the staff here. So any of those things are considered marketing, those dollars, our engineering costs, our project management costs, and then our overhead and our margin, our industry low. And so, it's cheap as an always best, but because we're so efficient, we don't have to we don't have to play like our competitors play. So one more time the thought process into this 120,000 savings or operation and maintenance. Yeah that could be a myriad of things so that could be the cost of reading the system like how many days is it taking the staff to read the current meter system, reread the system, you know, of their additional. There's a majority of things that we can, we can outline all of them. But this is, this does a couple things. So we would consider this a preliminary audit, because we've gotten some numbers from the staff, we feel like conservatively this is pretty good. This gives us actually peace of mind to stand up in front of you guys and say we'd like for us to go to the next step because if this didn't flesh out, let me get there. So all the green, I'm going to answer your question right now, miss. I was in there. All the green, I'm going to answer your question right now, Miss Ozzent. All the green, every line item has to pay for the yellow line item by at least $1. So that's by the legislation because that's what we're leveraging to do this. Otherwise, the utility y'all can go higher by the meter, y'all can find this y'all can go, you know, hire the buy the meter, y'all can find this y'all can install them yourself, or you can hire another installer, and then maybe there's change orders, maybe there's not. ours is a little bit more of a white love service, but because we stay involved, and we offer the product guarantees, and then we make payments when things aren't going, the way they're supposed to be going. So that's the why why and then your full experience in working with us. But so all of the green has to pay for the yellow by at least $1. We don't like it to be just $1 because it's too skinny. We can't control if half the town moves out or we're having massive fluctuations in weather, right? So when I'm in Odessa, they're on massive water restrictions. When we're east talking to city marshal, they've got more water and they know what to do with. And so they're both impact revenue when they have to have, whether they're on water restrictions or they have too much water, people aren't watering their grass. So we leave in this, we call it a safety factor that we want to, like we want to account for any of those maybe future gotchas. So you still have at least enough revenue to make that one principal interest payment. But those are things, that's why we don't say we guarantee the revenue because we can't guarantee like it Be tragic if half the town moved out, right? Okay, well now obviously your revenues can be cut to half your consumption But we guarantee the performance so if all things are equal everyone stay in here You should it should equal the revenue, but we're guaranteeing the performance and so it's but when that performance doesn't happen We can quantify that and that's the revenue that we actually have to pay back. And I've been able to say up until recently, up until Central Boutique, we've never had to make a payment, but we've made payments. And so, and that's what I, one of many things I love about our company is like, okay, well, yeah, we're doing the right thing. And so I can answer those tough questions when they're asked. It's like, oh, yeah, you know what? We actually, we're going to try and pass you off to, you know, oh, it's the meters problem. So to go talk to the meter brand. I could talk to you guys talking to you in the face about examples of when things have gone wrong because there's water and technology and sometimes it's not a matter of if it's a matter of when and when those things go wrong, we still want to be your first call, even after we've handed over the keys and said hey, the system's working great and then a year two or three, oh, what's this? then We get involved Well, you have project manager what performance services have I been? Yeah, I know I'm a business development manager, but our project manager lives in San Antonio I have a one quick one quick question. Yeah, I know you advocate for camp struck now Do you recommend other meters and yeah I'm in for me it's like okay this is more advantageous in this area this meter in this area or it's just one that you recommend. You guys like if you'll see any of my presentations before it's like it feels like I've like thrown you salt you're throwing me softballs so I you know I intentionally tell you where I live I Intentionally tell you where our project manager lives where our engineer lives our Texas headquarters in Round Rock the camp strip team is Here They they work with Ferguson who's been a long time provider of utility services for the staff for years. And so it's their excellent fit. So, but to further answer your question, that crew might not be a better fit in Odessa or in some other city because they may have a local crew that is more regional. So I mentioned earlier there aren't really many wrong technology solutions out there. I mean you can pick one that I probably wouldn't recommend. And those that I haven't said, I wouldn't recommend. But I'm not going to disparage them. But yeah, I only mentioned Camp Strip because I why, quite honestly, you'll have already talked to a few others. I like them a lot. I wouldn't recommend just mudding the water and bringing someone else in here. I think they can execute very well quickly. We're having a wonderful experience with them up the street in Blanco. Blanco City Manager would be happy to share where we just started installing their meters. So the regional support is just as important or more important than the meter technology. That said, their meter technology is a lead. I mean, I'm going to have to come later again. I'm going to have to come to this for the engineer. Awesome. But I kind of have to go work to understand finances. What happens in 20 years? Is possibility they're going to have rate increases? How does that play into the new, in your? Are you lifting that possible rating creases? because at 5% You know it's Yes, did you tell him to ask that question? Yeah, no So it's We're we only have the information that you've given us. The only lift that you see there might be, I'm beginning, I'm not good at math, but it might, because I know there is a delta from one, you're one, two, to three. It may be like, at least in the additional revenue, there might be like a 2% lift, which we account for inflation. Inflation at minimum has been 3% whether you use the PPI index or just inflation. And so, but it's your question, Leonard. We don't account for, okay, well we think you're gonna raise your rates in your five, so let's lift it another 5%, and then kind of fluff up the numbers to make them look better. We don't. But if you told us, hey Chip, we're actually having a rate increase in six months. Can you include that here? And let's repensal it out. We can use that. But if we can show you this, that it all funds. And so if I had, again, I'm like a visual person. So if you're looking at a line graph, right? And so you have if this is if this is 100% well right now if we say you're at 95% let's just call it 95% well those 95% you stay with the current technology that accuracy is is gonna dip because the moving parts get a little bit slower. You're still providing 100% of the revenue, or the water, but you're missing revenue. So if you didn't do anything, but you had meter increases, rate increases, you'd be chasing the dip in those meters. When you put these new meters in, you're at 95% you want to get here, they're going to bump up. We're going to guarantee them and we're going to pencil them out at 98.5% because that's what the operating says for a new meter. So you're already getting like a little bit extra revenue which is not even reflected in this. But if they're operating at 100%, and then you add a rate increase, now it's just more. And they'll stay static as long as that meter is working. So we're guaranteeing the results of the meter for life. And kind of follow up, my experience has been with meters. And if you get more accurate meters, bills are getting hot, absolutely higher. So, then you have a conservation thing. You know, I can't pay that bill anymore, so I'm going to reduce my water use at the same time. Right. So is that part of your, is that included in part of your analysis that it is, you know, if I'm putting in meter because you're going to have people like me, you know, I'm using my meters out of black. I should be charged 15 percent. Other people that the meters are accurate. So because my meter hasn't been read in accurate, you know, I'm going to stop the lower depth. Absolutely. So that's not what that big of bill is. So it's a conservation. That's our safety factor that we built in. OK, so that's why it's back to Ms. Alexander's question about $1. We're showing, I think, the smallest number of theirs, $9,000 or something, which is in year two. So we will leave more than enough revenue. And again, this hasn't accounted for any of the, you know, potential future rate increases. So, any other questions? I don't even get to brag on it like some of our other customers. But, so I'm not done. other questions. I don't even get to brag on it like some of our other customers. So I'm not done. So what I would like, and again I very much appreciate you bringing me here. We form services have seen enough in what the staff has provided. We know it's in the ground. I've lifted lids. I've been doing this for 13 years. We know it's at minimum 5%. We think it can be a little bit better. The technology is great. We know it fits within the legislation. We would love the opportunity to prove that out. That would be done through an investment grade on it. The term investment, which is required by legislation to do an energy savings contract. The term investment is as stated. There is a fee for that, but remember I stated multiple times. We don't offer, well not, we don't offer change orders, we don't offer change orders, but the first one is no upfront dollars. So we do this on our dollar and one of three things happens. So we do the investment grade on it. We work with the staff. We would pull, we would love the staff to say, hey, go pull liners meter, Mr. Wallace's meter, we know those aren't working and change them all out. We're going to see a bunch of revenue and then we can make this big project. We'll do a random sampling meters and whatever that note, it'll be at minimum 70 meters. We'll look at as many large meters as we can and test as many large meters. We'll look at all of large meters but we'll test as many large meters as we can because when I mentioned no change orders, if there's a fault that we missed or it's broken, We'll look at all the large meters, but we'll test as many large meters we can because when I mention no change orders, if there's a fault that we missed or it's broken, we want to see that up front because we don't want to miss it. Because that's on us and we don't like making those payments. I'll spend trying to lie. Okay, the investment grant on it. So per legislation, we have to hire a third party vendor to come in and do that random sampling meter testing. So they'll pull those meters, they'll test them on a test bench, they'll drop them right back where they found them because we don't want some of our competitors will say, okay, Mr. Wallace and staff go by 70 new meters put them in the ground give me the old ones and I'm gonna go test them right we we would like look We're gonna we're gonna bring the company in they're gonna test on site. They're gonna have to pull the meter for a few hours They'll put it back in We will Test'll put it back in. We will test them, put them back. This will take probably 60-ish days for us to do this analysis. Not that testing. That testing takes like two weeks. Like we can have two weeks. But we'll do that testing. Then we'll come back and say, OK, here is the prelim that you're looking at. Here's the audit. And it's a fully engineered investment grade audit and say, okay, here is, this is the prelim that you're looking at. Here's the audit. And it's a fully engineered investment grid audit with, you know, our guys, while I'm looking at the ground, they're going to be looking at the sky, they're going to be looking at the walls, buildings, you know, your HVAC units, lighting, and they'll come with any number of recommendations. We're solely focused on why we're here in the water, but they're going to give you a holistic view of, here's kind of things that we've seen, or here's what the staff said, or here's some other recommendations, and that's where staff, the board, says, okay, we want to do the meters, and maybe we want to do this distribution league test, and maybe we want to replace this for this. Or maybe just the meters. OK. One of three things happens. Our numbers prove to be at least this or better. Then we roll into a project. There's no breakaway fee. And again, that breakaway fee is only do rolls into the cost of the project. and it's just our third party costs. We're not we're not off You're not paying for my time. You're not paying for engineers time It's just what are we having to pay someone else to come do the testing to let match legislation so scenario one it matches up you guys like what you see we roll into a contract and we start executing number two great contract and this great audit will lead into that energy savings contract and that's a feat for both well the the contract would be like the the entire system right but we have to prove through the audit that it pays for us hardware everything and you'll have to you'll off to agree to it like it's not just I'm not sure we legally can do that. We may have to go out for what they said Beid still in this one all right, ord to a R at P Our cue nullification. Yeah, so we may have to do that This is this is the way around that is, I think again, thank you, Sandy, for bringing this one up. How 95% of our procurement is through tips. So we're selected through tips. We've already been pre-qualified through their contract. I think it ends next year. Again, I say 9 out of 10, 95% of our contracts are procured through here. I can share all of this, I can share our contract with you guys so you can vent it out. This is how central buoyant other utilities have selected us. Mr. Berr is always very, very conservative. I don't know if you want to. And so, all right, so scenario one, numbers prove out, everyone likes it, we move into the contract. Scenario two, numbers prove out, utility, it's cold feet, says okay, we have some other stuff going on, we just prefer not to. We would then ask you to make that investment grade audit, breakaway fee payment in your next budget year. Because you have an accountant for it in this current one or maybe the next one, so it'd be the next one. And that's a little bit intentional because we want you to then change your mind and say, you know what, we kind of want you all to come back and look at it. So you have a lot of grace to make that payment. Third scenario, which is the most unlikely is we goofed now and we get in and test the meters and they're testing too well. And so you get the audit, you make no payment and you can still hire us, but you know it's not going to fit legislation. So, Miss Rare, I'm sorry for taking so much time. Yeah, basically what we wanted to do just had to come, let's look at what it would cost us if we decided to go and buy it all at one time. So we're just kind of walking through the motion here to see I'm sure we probably are going to go with like the the meters we're just walking through the motion right now. Would it be possible is blanko far enough along in the installment everything that we could talk to them? Sure. I'll send contact information to Mr. President. Thank you. Thanks. So what happens with what in the meters how long are they are they weren't you by you guys are they're wanted to you by the manufacturer but we stand with them. You stand. Yeah, so if there's an issue you call us instead of being fact you're saying hey they're going to tell you hey send your meter back we'll investigate it and then we'll send it you a new one later. We will especially if there's a mass like there's a lot of them will be there. Because I have another neighbor who likes to use the writing the writing law and more and write all of the meters and he's like broken down. Yeah. Okay. Thank you very much Mr. Wood. You're welcome. Thank you all so much. Thank you. Thank you. Thank you, Chip you. Thank you. Thank you. I appreciate it. Next will be a presentation concerning the district's 2024 and 2025 capital improvement plans and possible deliberations regarding those plans. Hi, Mr. Young. Good evening. I'll talk to David as an additional water. I don't know if that particular business is going to use a lot of water. It is not a restaurant. And so it is probably not going to use water. I don't see it as an additional water. I don't know if that particular business is going to use a lot of water. I don't, it is not a restaurant. And so it is probably not going to use water, but that's a project that's going to be going on. Also, I've talked about Project Muppet Eagle Cress. It has not moved forward at this time. So right now, we don't have a new customer yet. And I'll just, when I talk to the D.C. I don't know how I say make public on this. So I'm kind of careful as I say a name. I know who the name is, but I haven't been given permission to discuss who they are. I'm going to reserve that. The City Street Project is still ongoing. I think that we've had one water break in an area. We're going to come back to David, made the the repair and that's going to get taken care of with the street project. The other thing is the district has made some repairs prior to the project starting. I think it's two since the project started we asked for those locations and see if we can get a process from the contractor to do those repairs instead of the district going up getting a separate contract. We did that previously on the other street projects where we asked that contractor to contract directly with the district and make those asphalt repairs not the water repairs but the asphalt repairs. Those are going to be like on the inner street where we had across the whole street to replace the service lines. And so we can do it but we had to bring another contractor in so we're trying to let city contractor give us a better price because they could do that at the same time. That's what we're talking about on that. And we've also done another project the other day. We just finished this week where we had, at the end of the color second, whatever that street was. That road? Which one? That's the better problem. I think so. That's a good one. And so what happened was, easy in the voices side, it's going to invite the bullet and replace that pipe and that color and that area. And turn it out, we only had six repair clamps. And then we knew we had a lot. We only had six and 160 feet. So we did that, so they'll also have that repair done too. So we're trying to do as much as we could and stay in front of them, but they only have about two more weeks to go. You're out? I think we're actually going to get 30 days. There's one street, kind of below, that has a concrete structure in it, and they're going to replace a section of that, so they're going to have to come back. They're going to do that kind of thing. So if anything pops up within that 30-day period that we can take care of, then we can add that to the to the contract the city And if something happens after that point This is probably going out with another contract or an extension of the contract so we can kind of pick up some of those If something occurs we can pick in 2024 actually You know it'll be 25. So in 2025, you think it about going back and doing some more work? There will be some more projects. From understanding there's going to be funding that set aside. And so we're going to do more projects. We're going to have to give you the list. But most of those will be projects that we did five years ago. And you can begin the crack and you have to do streak maintenance. We're going to do another surface treatment called slurry seal on it. But I think we took care of most of those. It will be like we started in the Zephyr area on the streak projects as well. So I don't think it'll interfere with much that the water district has. I appreciate that. It won't be anything on the other side of town. I think that's what we've had most of the breaks. With that that concludes on David's anything else? No, you know, we had six water breaks in August and had one the month before. So, but it got dry, we knew it was gonna get dry. When the ground shifts, we have breaks. And so that's why we had to do repairs. Now we've kind of slowed down who we had the rain again. So what I don't want to do is try to get in a bind like I did this year and do project real fast just staying in front of the city. So, but we had to finish those. So, they were. The only other thing I'll kind of mention from the utility standpoint, there's a couple of manholes that we experienced some issues with. Actually, when we did the meal in overlay project, we're gonna adjust those. I think it's one big one that's bluegrass. I mean it's been an issue for a while but we're gonna because they're gonna do the street work we're gonna adjust it manhole and it shouldn't be a problem. The other one is Jolie. Jolie, go over here. Gollacris somewhere Thank you. Thank you. Next the board will receive a report about the district income, 131, 780.6. You know, we were down about $12,000, $13,000 from July. We always read from the 20th of July. So July is actually 20th of June to the 20th of July. So today we read, and we finished everything for September. So, so on the 20th of July. So today we read and we finished everything for September. So it's on the 20th of September back to August. So sometimes the numbers look a little strange because you said, hey, it was rain a little bit in July, but that's why we did a water. The suring income again is 106275, almost like it was the month before. The Edward's aquifer fee is $14,958.16. I don't need to tell you that we have to pay for all 16 and 24 acre fee to share, because it's already in September, unless it floods in October, we're gonna have to pay the full amount. So that's that regulatory assessment fee against 1801 at base of the money, Miss Lane's fee of 31,571.65. The total was $286.387. Next one. Okay. We paid the general insurance for the year. I don't see them coming back in the last couple months and getting this for that. The group insurance again we paid $6,150. As you noticed on the right we're only at half 50% of our budget and we're already into August so we're going to be under budget again. We knew that. We really don't know what the fees are until end of December so I just leave that number the same way because next month I'm going to give you preliminary budget to look at for the year We do have another employee that we've hired who's actually married and has a couple kids So he costs a little bit more, but he's young The older ones cost the most except if you're old Medicare I'm cheap I'm cheap cheap off of the expenses 28, 48 just almost like it was last month. Professional services were at 3,100 just like it was almost a month before. Maintenance repaired. We went down a little bit because we're not spending quite as much money as we were because we were doing the Spanish malls, tealway and all the other projects. At the same time, we were buying the material as a contractor was putting in stuff in the ground. So that cost went down a little bit. Utilities were a little bit higher, 87.69, it was awkward fee at $11,919.05, just like it was a month before. Payroll tax was $39.02, a few dollars more. Retirement contribution was $27.20, a little bit more. Salaries was about $1, dollars more than it was before even though we had water breaks and stuff. And the salt contract again was 6590885. Next page. TCU assessment fee again. We collect that further state. Then we had no rebate, no election yet. We've already paid for the rent, we did some IT web with earhulser for 78481 and so we budgeted that so we're at 15% for the year so the wind crest charge went down because of the rain 32 34 59 no bad debt adjustment. Total expenses 183, 510, 61. Operating income is 102876. You take the interest from the CDs we have. So we had a, we were in the black $109,067.48. Not bad, not bad. Unfortunately, the next day I wrote $37,000 check, put it in the bank. And so the note revenue payment came out. So we will see that next month. I think I paid them $110,000 or something like that. That was that interest only payment. In February of March, we paid interest in principal, so it was a bigger note. Okay. So, Frostbank, we have 492, 719, 80, and the interest is in sinking fund is 108, 48, and that's pretty much empty now. That's what we had, but we had to pay the note. Again, you got the other amounts in there, so you had a total of 601, 405, 39. You have a question? No, I said it's not bad. No, not bad. OK, so now here comes the good part. So Texpool is 531. And the Earth is going to come down because the interest rate came down yesterday. And they fluctuate. They can do the automatic. Bank of OKZ is coming up. It's at 4.7. The Broadway bank is at 5.03 and that comes to do next month and everything else I brought up except security services and that's an old CD we've had in there and it's at 2% everything else is either 4.00 somewhere it's we've done real well on the interest rate and we done real well so we make money on the interest of the money that we that's when we have a smaller we only have half a million and the checking count not a million and you also understand we paid contractors to the payment and we paid and we paid the tank this year so next. So we added all together at the August 34th he had two million 51 7 30 55 and I was trying to figure the other day we were probably gosh close to four hundred thousand dollars this year out in in payments for the contract for paying the tank and for the other contractor doing the work on Spanish mall so we did it real well. We did it real well. That's for that borrowy thing. No ma'am, don't borrow if you can't. OK, so again, you see the solves bills. That's right, we've not borrowed any money in a while. We won't get that instant drink for a while. So we're still in state three water restrictions. I just checked a while ago. Edwards at 628 So it's gonna take 32 feet to fill it and so The rain we had was only in windcrest. I looked on the radar We're not replacing any meters unless they're broken because again We're walking through the process of how we want to do the new electronic meters next year And we're still on board for the CIP project. So we did a CIP project this week. We now have, you know, we've let me have easy, have four guys in the field. So we've able to, our younger ones have left us. So now we have an older crew, a little bit older. We have one that's really experienced laying pipe and stuff. So they laid 160 feet of replacement pipe in two days and covered up and made a tap and stuff. So economically all we were out was basically a little bit of overtime and then the materials. So you should see a difference starting in the next couple of months where easy in its four-man crew will be out there replacing gate valves. So in 2025, most of the capital improvement projects will be done by Easy and His Famous Crew. Okay, that's where our goal was ahead. So we'll be out materials and labor and stuff. And then of course the city will come back and charge us for pay-be. Okay, so August we pumped 33,000, 33 million, 11,000 gallons. The Edwards today, I told you what, so we've got 635. So if you add that, if you got September, October, November, December, you're probably going to be right out of 1,000 acre feet. I think we need to be around 1,060 or under to not get penalized based upon the level. That's $50,000 that we spent for nothing, but that's another thing. So at the bottom, unbuilt again, the city was 32.87. Next page. Average consumption, number of work orders are 82 meters install. We only did six. But if you look down below that, you see in July, we had one water break, we had six in August. And but just five inches in July, and you had break, we had six in August, but Jay five inches in July and he had less than just over half an inch. We did 22 adjustments, you've asked me for it all the time. For 47, 92, 58, we might have a few more adjustments this month, because we had three large, large mistakes coming in. People had used 100 cubic feet, 100. Yeah, we said, wow. And they were correct readings. So they had some issues. They had leaks. Had leaks, and it's Hoover knows. I put on spot. When for sure has had a leak. The other one's trying to find out what's going on. And then another one, the home is vacant. So we're not sure if they had left the hose running in the pool because they did see a hose going into the pool. So we're not sure if that's what caused it. A 100 CCF is roughly 74,500 gallons. That's a lot of water. Went somewhere. But the media reading was accurate. And, you know, again, we only read every 30 days. I can't police you that 30 day period. So they happen. They miss Hoover has already notified the other situation. They'll come back corrected, so there'll be a little bit larger adjustment probably in next month. So next month before we get started on the other day, I'll have your proposed budget for 2025 ready for you in October. It's just for discussion only. And then in November, you'll go and approve the budget everything. Any questions? So if we have smart meters they would catch that right away that you have a lead. Yes sir. And we're saving all the money. Right well yes so you're absolutely right. So what according to what they're telling us is that every morning, six o'clock in the morning, whatever, they would have called Miss Sandi over there. Hey, Miss Sandi, Anna Marie's out there, her yard, the hose have been running all night. So we go in and we find the body and with the hose in her hand. So then we know we don't waste that water, see what I'm saying? But on these three individuals here that was 74,000 gallons of water that the district used that accounts against our Edward's water and if we turn around and give him credit, I'm not going to lose money on the deal. We're going to get out. We're going to not lose money but we'll have to go back and compensate. We lost water and so now we'll have to compensate for them under our adjustment plan. And so, but that's the issue that we need to try to correct. And all three of them will issues that, if you did have electronic meters and you have your system working perfectly, it would have notified you in advance that hey, Anna Marie will just gonna crazy over there, you know, in water day and night. Or it just like this person says, I don't know where the water went. That's a famous question. Where did it go? We don't know. But we went through the meter. And so, what's the David mentioned and when you're talking about automated meters, because you're only reading once a month, you can set it alarm on the system that if all of a sudden they have a thousand gallon increase of a period it'll automatically give a alert depends on which meter system you take the software can do a lot of things every 15 minutes every every 10 minutes. If they're away from home, they can, like the bacon house, it's notified in, put into the system, it's the bacon house, we shouldn't have any water. But that system that we currently have, shows some type of unusual... Eventually we need to get into that deal, like Mr. Young said. Okay, there is no need for an executive session and so our next item will be other business brought before the board. I'd like to remind all of our customers that in November 5th election there will be two water board members elected. The candidates names will be on the back of the ballot. So be sure you don't skip that. There will be three names there. You may select two of those three names to fill the two waterboards seats. Is there anything else that we need to go all the way down and then on the back of that ballot, that's where the three names were. Look at it worse. I mean, they're in it. We're last. We're down. It's difficult. Yeah. But just to remind everybody, you may vote for two of the three candidates, each voter. Okay. Is there a motion to adjourn? Yes, Madam President. I like to make a motion to adjourn tonight's meeting. A second. Motion and second. All in favor raise your right hand. Okay, I just don't see something there. I'm going to go to the big turn-off. I'm going to go to the bathroom. And here we will, we can take those, or have you already given those the same thing? Oh, no, not that. I already turned- No, no, no, no. Come on. We all- We all know. Yes. Thank you. I'm gonna cut you all in line.