[Service Delivery Committee on April 14, 2025.]
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GOOD AFTERNOON.IT'S MONDAY, APRIL THE 14TH, AND THE TIME IS 2:00 PM.
UM, I'M A COUNCIL MEMBER, TARSHA JACKSON, CHAIR OF THE SERVICE DELIVERY COMMITTEE.
SO I'M, I'M GONNA DO SOME, SOME READINGS AND THEN WE'LL TURN IT OVER TO YOU GUYS.
SO TODAY WE'RE JOINED BY COUNCIL MEMBER ALCORN, UM, IN CHAMBERS.
UM, ALSO, UM, WE ARE JOINED BY STAFF FROM COUNCIL MEMBER CASTILLO, COUNCIL MEMBER SHABA RAMIREZ.
MARTINEZ, COUNCIL MEMBER, PLUMMER COUNCIL MEMBER, UM, I'M SORRY.
PRO, PRO MAYOR PRO, I'M SORRY, WE'RE GONNA LIKE GET THIS TOGETHER.
DID I MISS ANYBODY? ONLINE AND COUNCIL MEMBER POLLARD ONLINE STAFF.
SO I THINK WE ARE ALL HERE, RIGHT? OKAY.
SO THIS MEETING HAS BEEN HELD IN HYBRID MODE IN PERSON AND VIRTUALLY, AND IT IS OPEN TO THE PUBLIC.
THE CHAIR, AS PRESIDING OFFICER OF THE COMMITTEE, IS PHYSICALLY PRESENT IN CHAMBERS IN ACCORDANCE WITH THE PROVISIONS OF SECTION 5 51 DASH 1 27 OF THE TEXAS GOVERNMENT CODE APPLICABLE TO THE GOVERNMENTAL BODY THAT EXTENDS INTO THREE OR MORE COUNTIES.
ALL OF OUR COM OTHER COMMITTEE MEMBERS HAVE THE OPTION TO PARTICIPATE IN PERSON OR VIRTUALLY VIA MICROSOFT TEAMS. AND SO TODAY WE ARE, WE, WE WILL RECEIVE A PRESENTATION FROM THE HOUSTON PUBLIC WORKS, UM, DEPARTMENT ABOUT THE EAST WATER PURIFICATION PLANT ENHANCEMENT PROJECT, WHICH THIS IS A, WHAT, $4.2 BILLION EXPANSION OF WHAT IS HOUSTON DRINKING WATER BACKGROUND.
AND SO THIS SPECIAL CALL MEETING HAS BEEN, UM, BROUGHT FORWARD BECAUSE THERE IS A GRANT THAT I KNOW YOU GUYS WANT TO APPLY FOR AND, UM, READY TO HEAR MORE ABOUT THIS.
UM, BUT COUNCIL MEMBERS, UM, I'M GONNA ASK YOU TO PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THE PRESENTATION, AND IF YOU WOULD LIKE TO ASK A QUESTION, UM, LET US KNOW IF YOU ARE ONLINE, UM, TYPE IN SPEAK IN THE CHAT POD, AND YOU WILL BE RECOGNIZED IN THE ORDER THAT YOU, UM, REQUEST TO SPEAK AND REMEMBER TO UNMUTE YOUR MICROPHONE AND MAKE SURE THAT YOUR CAMERA'S ON AS WELL.
AND SO, WITH THAT BEING SAID, I WANT YOU TO GO AHEAD AND MOVE FORWARD WITH THE PRESENTATION AND INTRODUCE YOURSELF.
I DIDN'T INTRODUCE YOUR, YOUR NAME, SO JUST INTRODUCE YOURSELF.
COUNCIL MEMBERS AND REPRESENTATIVES, UH, THANK YOU FOR THIS OPPORTUNITY FOR HOUSTON PUBLIC WORKS TO PRESENT WHAT IS GOING TO BE A FAIRLY SIGNIFICANT PROJECT IN THE UPCOMING YEARS, WHICH IS THE EAST WATER PURIFICATION PLANT ENHANCEMENT PROJECT.
I'M THE CHIEF FINANCIAL OFFICER FOR HOUSTON PUBLIC WORKS, AND I AM JOINED BY MY COLLEAGUE RAVI K HERE.
HE'S A SENIOR ASSISTANT DIRECTOR IN OUR DRINKING WATER OPERATIONS.
I WILL ALLOW RAVI TO KICK OFF THE PROJECT AS WE GO THROUGH THE PRESENTATION, AND I WILL JUMP IN AS WELL.
THANK YOU, SAMIN, FOR THE INTRODUCTION.
I WANT TO THANK ALL THE, UH, COMMITTEE MEMBERS, UH, FOR, UH, FOR BEING HERE AND, UH, WITH THAT, UH, NEXT SLIDE PLEASE.
I'M SORRY, WE CAN'T SEE THE SLIDES THAT WELL.
SO THE AGENDA FOR THE DAY WOULD BE WE'LL GIVE YOU AN OVERVIEW OF THE EAST WATER PURIFICATION PLAN, AND I'LL START USING THE ACRONYM EWPP GOING FORWARD.
THAT STANDS FOR EAST WATER PURIFICATION PLAN.
SO WE'LL GIVE YOU A BRIEF OVERVIEW OF THE, UH, EWPP, FOLLOWED BY THE CONDITION, EXISTING CONDITION OF THE PLAN.
AND I, I WILL TALK ABOUT THE RECOMMENDATIONS, HOW TO FIX THE ISSUES THAT WE HAVE AT THE CURRENT PLANT.
UH, SO THE RECOMMENDATIONS WILL FOLLOW THE CONDITIONS.
AFTER THAT, WE'LL TALK ABOUT THE COST AND THE SCHEDULE, UH, FOLLOWING, WHICH SAMIR WILL COME BACK AND TALK ABOUT OUR FUNDING OPTIONS, AND THEN HE'LL ALSO TALK ABOUT THE PATH FORWARD.
THEN WE'LL CLOSE IT OUT WITH, UH, Q AND A.
AS YOU CAN SEE FROM THIS SLIDE, E-E-W-P-P IS THE BACKBONE OF OUR DRINKING WATER FACILITY, UH, DRINKING WATER SYSTEM, APPROXIMATELY 90% OF CITY OF HOUSTON.
UH, WHEN I SAY CITY OF HOUSTON, FOLKS WHO ARE SERVED BY, WHO ARE WITHIN THE CITY LIMITS, APPROXIMATELY 90% OF THEM GET WATER FROM THIS PLANT.
SO, OUT OF THE 2.1 MILLION, UH, PEOPLE WE SERVE WITHIN HOUSTON, APPROXIMATELY 1.9 MILLION PEOPLE GET WATER FROM THIS, UH, UH, WATER PLANT.
UH, SOME OF THE KEY, UH, AREAS THAT WE SERVE ARE, UH, HOUSTON DOWNTOWN, UH, TEXAS MEDICAL CENTER, AND ALSO THE SHIP CHANNEL.
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SO FROM THIS, YOU CAN SEE THIS IS ONE OF THE MOST IMPORTANT, UH, INFRASTRUCTURE THAT THE CITY OWNS AND OPERATES.YEAH, THE EWPP HAS THREE PLANTS.
PLANT ONE AND TWO WERE BUILT IN 1950S, SO IT'S PRETTY OLD PLANT.
AND PLANT THREE WAS BUILT IN 1980S.
SO PLANT ONE IS RATED FOR, UH, 180 2 MGD, AND PLANT THREE IS RATED FOR 180 MGD.
SO A COMBINED CLARIFY MGD, YEAH, A COMBINED OF 360 2 MGD.
WHEN I SAY MGD, IT'S THE MILLION GALLONS PER DAY.
AND WHEN I SAY RATED, IT MEANS THAT IS WHAT WE HAVE BEEN PERMITTED BY THE REGULATORY AGENCIES.
UH, THE TEXAS COMMISSION FOR ENVIRONMENTAL QUALITY.
SO RATED CAPACITY IS COMBINED, RATED CAPACITY IS THREE 62 MILLION GALLONS A DAY.
AND THIS PLANT IS LOCATED OFF OF, UH, UH, FEDERAL ROAD, UH, IN THE GALENA PARK, UH, AREA.
SO, IN, UH, 2021, UH, AECOM DID A STUDY, UH, OF THE, OF THE PLANT.
AND AS YOU CAN SEE FROM THE, FROM THE SLIDE, UH, MAJORITY OF THE ASSETS ARE COMING TO THE END OF THEIR USEFUL LIFE.
UH, IN THE NEXT FIVE TO 10 YEARS, MOST OF THE ASSETS WILL COME TO THE END OF THEIR USEFUL LIFE.
THAT IS THE MAIN REASON WE ARE DOING THIS PARTICULAR PROJECT.
AND ALSO THE CRITICALITY OF THE, OF THE PLANT AS I, UH, DISCUSSED EARLIER.
SO, AS YOU CAN SEE, THE PLANT IS RATED FOR 360 2.
THAT'S THE THREE 62 MILLION GALLONS A DAY.
THAT IS WHAT WE HAVE BEEN PERMITTED BY THE REGULATORY AGENCIES.
BUT ON AN AVERAGE DAY, WE CAN ONLY GET TWO HUNDRED AND FOUR, TWO HUNDRED THIRTY 9 MILLION GALLONS A DAY.
OKAY? AND ON A, ON A, ON A VERY GOOD DAY, WE ARE ABLE TO GET 2 92 MGD MILLION GALLON A DAY.
SO THERE IS A GAP BETWEEN 360 2 AND WHAT, UH, WHAT IS RATED AND WHAT WE ARE ACTUALLY ABLE TO GET OUT OF THIS PLANT.
OKAY? SO WHEN THERE IS SUCH A HUGE GAP, WE RELY ON OUR GROUNDWATER SYSTEM.
SO ONCE WE RELY ON OUR GROUNDWATER SYSTEM, THEN THE SUBSIDENCE ISSUES COME INTO PLACE.
SO THIS, THIS IS ALSO ONE OF THE REASONS THAT WE ARE DOING THE PROJECT.
SO, OUR PREVIOUS, UH, HOUSTON WATER DIRECTOR, GREG LEY, HAD, UH, HAD TALKED TO SEVERAL OF YOU, UH, SEVERAL OF THE COUNCIL MEMBERS REGARDING THE CONDITION OF THIS PLANT AND ALSO THE NEED TO, UH, UPGRADE OR BUILD A NEW PLANT.
UH, IN FACT, UH, THEN HE WENT TO THE STATE LEGISLATURE ALSO TO TALK ABOUT THIS PLANT, UH, THE NEED OF THE PROJECT, UH, NEED FOR THE PROJECT.
AND THEN IN, IN THE MONTH OF FEBRUARY, WE HAD A MEDIA DAY.
HE, HE INVITED ALL THE LOCAL CHANNELS, UH, AND, UH, HE EXPLAINED TO THEM, HE SHOWED THEM, UH, THE CONDITION OF THE PLANT, AND HE EXPLAINED TO THEM THAT, HEY, WE NEED TO, WE NEED TO WORK ON THIS PROJECT.
SO WE LOOKED AT THREE ALTERNATIVES, AND WE ONLY ONLY FOCUSED ON PLANT THREE.
THE REASON BEING PLANT ONE AND TWO, UH, WERE BUILT IN THE 1950S, SO IT HAS REALLY COME TO THE END OF USEFUL LIFE.
SO WE MAINLY FOCUSED ON PLANT THREE AND, AND, AND, AND A NEW FACILITY.
SO WE LOOKED AT THREE ALTERNATIVES.
THE FIRST ALTERNATIVE WAS TO EXPAND, UPGRADE, AND EXPAND THE EXISTING PLANT THREE WITH THE SAME UNIT PROCESSES.
THAT MEANS WHATEVER WE HAVE CURRENTLY, WE'LL JUST EXPAND THAT PARTICULAR PLANT.
THAT IS ONE OF THE OPTIONS WE LOOKED AT.
AND THE SECOND OPTION WE LOOKED AT WAS UPGRADE AND EXPAND PLANT THREE WITH NEW PROCESSES.
THAT MEANS ENHANCED PROCESSES WHERE YOU HAVE OZONE AND YOU'LL HAVE, UH, PLATE SETTLERS.
UH, THOSE THINGS WE LOOKED AT UNDER PLANT UNDER ALTERNATIVE THREE.
THEN WE ALSO LOOKED AT ALTERNATIVE THREE.
THAT IS TO EXPAND AND BUILD A NEW PLANT IN, IN THE MONOFIL AREA.
UH, THE MONOFIL AREA IS LOCATED WEST OF PLANT THREE.
WE, WE HAVE A MONOFIL THAT, WHEN I SAY MONOFIL, THAT IS WHERE ALL THE SEDIMENTS AND, AND FROM THE TREATMENT IS WE, WE DUMP THAT IN THE MONOFIL AREA.
SO WHAT WE ARE APPLYING TO ON ALTERNATE THREE IS TO BUILD A BRAND NEW PLANT, UH, IN, IN THE MONOFIL AREA.
SO THESE WERE THE THREE ALTERNATIVES WE, WE LOOKED AT, BUT THE ALTERNATIVE THREE, WE ALSO LOOKED AT, UH, ENHANCED PROCESSES.
SO OUR RECOMMENDATION IS TO GO WITH ALTERNATIVE THREE.
UH, THE REASON BEING, IT, IT GIVES US THE SHORT SCHEDULE, UH, AS, UH, AS, AS I EXPLAINED EARLIER, TIME IS OF ESSENCE HERE.
SO WHEN YOU ARE GOING WITH ALTERNATIVE THREE, WE ARE NOT IMPACTING THE OPERATIONS
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OF THE EXISTING THREE PLANTS, RIGHT? SO WE WILL BUILD A NEW PLANT IN THE MONO FIELD AREA.THE EXISTING PLANT WILL CONTINUE TO OPERATE WITH MINIMAL INTERFERENCE FROM CONSTRUCTION.
SO HENCE THE SCHEDULE IS SHORTENED.
AND THEN WE WILL ALSO HAVE NEW PROCESSES THERE.
UH, SO WE'LL HAVE ENHANCED PROCESSES, WE'LL HAVE THE CO COAGULATION CALCULATION, THEN THE PLATE SETTLERS, THEN WE'LL HAVE OZONE, THAT, THAT GIVES US MUCH BETTER WATER.
AND THEN, UH, THAT HELPS US IMPROVING THE RESILIENCY IN THE AND RELIABILITY AT THE PLANT.
AND IT ALSO EXTENDS THE USEFUL LIFE OF THE ENTIRE COMPLEX.
SO THE, THE, THE, THE UNIT PROCESSES, OR THE PROCESSES THAT WE ARE GONNA USE HERE IS SIMILAR TO THE NORTHEAST PLANT THAT WE, WE ARE IN THE PROCESS OF, UH, COMPLETING THE BUILD OUT.
THE REASON WE ARE USING THE SAME PROCESSES HERE IS IT HELPS OUR STAFF, THE OPERATION AND MAINTENANCE STAFF, UH, WITH UNIFORMITY ACROSS, AND ALSO IT'S A MUCH BETTER, UH, TREATMENT PROCESS.
SO HOW DO WE DELIVER? SO WE EVALUATED, UH, FOUR OPTIONS.
THE TRADITIONAL DESIGN BID BILL.
UH, THEN WE SAID, UH, THAT USUALLY TAKES A LONG TIME.
SO SINCE WE DIDN'T HAVE THAT KIND OF TIMEFRAME HERE, WE DID NOT SELECT DBB, THEN WE LOOKED AT DESIGN BUILD AND PROGRESSIVE DESIGN BUILD.
UH, THAT, THAT PROCESS, UH, ACCORDING TO US, WILL IMPOSE A LOT OF RISK FOR US AS OWNERS AND ALSO FOR THE CONTRACTING COMMUNITY.
SO WHEN THE RISK IS HIGHER BOTH WAYS, THEN THE PRICE GOES UP.
THEN WE LOOKED AT CMA CONSTRUCTION MANAGER AT RISK.
THE MORE WHAT WE ARE GOING TO DO, WHAT WE ARE RECOMMENDING IS, UH, WE PUBLIC AT PUBLIC WORKS, WE WILL HAVE TWO CONTRACTS.
ONE IS ONE CONTRACT WITH THE DESIGNER AND ONE CONTRACT WITH THE CONSTRUCTION MANAGER AT RISK.
SO WE'LL ADMINISTER THOSE, THOSE CONTRACTS.
BUT THERE WILL BE A WORKING RELATIONSHIP BETWEEN THE CMAR AND THE DESIGNER.
BUT THE CONTRACTUAL RELATIONSHIP IS ONLY WITH US HOUSTON PUBLIC WORKS.
SO WHY, WHY IN ADDITION TO THAT, THIS MODEL WILL HELP US DELIVER THE PROJECT FASTER, BECAUSE WE CAN USE EARLY WORK PACKAGES.
UH, WHAT I MEAN IS WHEN THE DESIGN IS ONGOING, CONSTRUCTION CAN START.
SO THAT IS THE BEAUTY OF THIS ALTERNATIVE DELIVERY.
AND WE CAN ALSO GET CONSTRUCTION INPUT, UH, DURING THE DESIGN PHASE, WHICH IS ONE OF THE MOST CRITICAL, UH, THINGS YOU CAN DO IN DESIGN.
SO EARLY ON WE WILL, WE WILL HIRE THE CMAR AND THE CR WILL HELP DURING THE DESIGN PHASE.
THEY'LL GIVE ALL THE INPUT AS FAR AS HOW THE CONSTRUCTION SHOULD OCCUR, HOW THE SEQUENCING SHOULD OCCUR, ALL THAT.
AND THEN WE GET A COST CERTAINTY BECAUSE WE GET A GUARANTEED MAXIMUM PRICE EARLY ON IN THE PROJECT.
WE DON'T HAVE TO WAIT TILL THE BIDS ARE OPEN AND BE IN FOR A SHOCK THAT IS AWARDED.
WE ARE GOING TO GET A GUARANTEED MAXIMUM PRICE EARLY ON.
AND THEN THE MARKET COMPATIBILITY, WHAT WE DID IS WE DID A MARKET SOUNDING.
WE REACHED OUT TO SEVERAL CONTRACTORS, AND THE CONTRACTORS, UH, PREFERRED THIS METHOD OF DELIVERY ALSO.
SO WE, SO THERE'LL BE A LOT MORE PARTICIPANTS, AND THAT MEANS THE, HOPEFULLY THE BIDS WILL BE, THE GUARANTEED MAXIMUM PRICE WILL BE WITHIN OUR BUDGET.
AND ALSO, UH, THERE ARE SEVERAL ONGOING PROJECTS FOR THE, FOR THE PLANT, ONE, PLANT, PLANT TWO, AND PLANT THREE.
WE CAN WRAP THOSE PROJECTS UNDER THE SEAMAR.
UH, AND OF COURSE THE LAST, BUT NOT LEAST, UH, THE LOCAL COMMUNITY WILL GET A LOT MORE OPPORTUNITY TO PARTICIPATE IN THIS PROJECT WITH THIS MODEL.
SO OUR GOAL IS TO, UH, INITIATE PROCUREMENT SUMMER OF 2025.
SO WE ARE, UH, WE ARE, UH, IN THE PROCESS OF PREPARING ALL THE PROCUREMENT DOCUMENTS RIGHT NOW.
THEN WE WANT TO DELIVER THE PROJECT IN TWO PHASES.
THE FIRST PHASE WILL BE 90 MILLION GALLONS A DAY.
UH, SO, UH, HOPE WE ARE, WE HAVE A SUBSTANTIAL COMPLETION OF 2031.
THE REASON WE WANT 90 MILLION GALLON PER DAY EARLY DELIVERY IS BECAUSE AS, AS I SHOWED, AS I DISCUSSED, PLANT ONE AND TWO ARE ALMOST AT THE LAST PHASE OF THEIR LIFE.
SO WE WANT, UH, AT LEAST 90 MTD TO COME EARLY ONLINE.
AND THEN THE REMAINING 360 WILL COME ONLINE IN JULY OF 2033.
AND THE FINAL COMPLETION WILL BE IN 2034.
SO OUR TOTAL ESTIMATED PROJECT BUDGET IS, UH, IN THE RANGE OF 3.3 TO $4.2 BILLION RIGHT NOW.
UH, OUT OF WHICH THE ESTIMATED CMAR COST IS BETWEEN 2.8 BILLION TO 3.2 BILLION.
AND THE ADMINISTRATION ENGINEERING PERMITTING, AND THE, AND, UH, AND THOSE COSTS ARE IN THE $0.521 BILLION RANGE.
SO THE TOTAL PROJECT COST WILL BE IN THE 3.3 TO $4.2 BILLION.
AND THIS DOES NOT INCLUDE THE ONGOING CIP PROJECTS FOR OUR EXISTING FACILITY THAT I HAD MENTIONED.
AND I'LL BE TALKING ABOUT THAT IN THE NEXT SLIDE.
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THAT ARE ONGOING RIGHT NOW ON THE PLANT ONE, PLANT TWO, AND PLANT THREE.UH, THESE PROJECTS ARE, UH, ARE THERE TO KEEP THESE THREE, UH, PLANTS GOING TILL WE FINISH THE NEW PROJECT.
OKAY? AND THESE, UH, THESE PROJECTS SHOULD TAKE THE PLANT ONE, PLANT TWO, AND PLANT THREE, EXTEND THE LIFE OF THESE THREE FACILITIES BY ANOTHER 10 TO 15 YEARS.
SO THE NEW PLANT WILL COME, COME ONLINE BY THEN, AND THEN WE WILL HAVE A ROBUST, UH, FACILITY THERE.
SO I'LL TURN IT OVER TO
FUNDING CAN BE TRICKY FOR SOMETHING AS SIGNIFICANT AS THE EAST WATER PURIFICATION PLAN, ESPECIALLY WHEN YOU'RE TALKING ABOUT BILLIONS OF DOLLARS.
THE GOOD NEWS IS WE'VE HISTORICALLY ENJOYED A GREAT RELATIONSHIP WITH THE TEXAS WATER DEVELOPMENT BOARD, UM, AND WE'VE BEEN ABLE TO JUST RECENTLY FOUND OUT WE WERE ABLE TO SECURE SOME LOW COST FINANCING THROUGH THEM TO THE TUNE OF $966 MILLION.
THAT'S SIGNIFICANT FOR A LOT OF DIFFERENT REASONS.
UH, ONE OF THE MAIN REASONS IS THAT THEY ALLOW US TO GO AND GET SOME FUNDING AT A SUBSIDIZED INTEREST, UH, COST.
SO IF THE CITY OF HOUSTON WERE TO GO ON AN OPEN BOND MARKET, INTEREST RATES WOULD BE THIS MUCH.
BUT THEN BECAUSE OF THE TEXAS WATER DEVELOPMENT BOARD, UH, PROGRAM FINANCING, WE'RE ABLE TO GET INTEREST RATES THAT'S A LITTLE BIT LOWER THAT ESSENTIALLY WOULD ALLOW US TO, UM, UM, SECURE SAVINGS TO THE TUNE OF ABOUT 200 TO $250 MILLION OVER THE LIFE OF THE LOAN.
THE OTHER THING THAT WE'RE WORKING ON THAT WE HAVE NOT LOOKED AT BEFORE IS THE WATER INFRASTRUCTURE FINANCE AND INNOVATION ACT PROGRAM THROUGH THE FEDERAL GOVERNMENT, WHICH IS ALSO CALLED THE WIA PROGRAM, WHICH ALLOWS US TO SECURE ABOUT 49% OF THE TOTAL PROJECT COSTS, WHICH WILL BE ROUGHLY ABOUT $2 BILLION.
UH, WIA HAS A PROGRAM THAT ALLOWS A MAXIMUM AMOUNT OF FLEXIBILITY WHEN IT COMES TO FINANCING, UM, UM, UM, EVEN FROM THE SUBSTANTIAL COMPLETION OF THE PLAN.
IT GIVES US FIVE MORE YEARS BEFORE WE HAVE TO PAY BACK ANY OF THE LOAN.
AND THE REASON WHY, USING COMBINATION OF TWDB PLUS IF YOU FINANCING IT ALLOWS US OVER THE NEXT, HOWEVER LONG IT'S GOING TO TAKE TO BUILD OUT THIS PROJECT, UH, FLEXIBLE PAYMENT ARRANGEMENTS.
SO WE'RE NOT GONNA SEE WHAT WE'RE TRYING OUR BEST TO SMOOTH OUT, WHAT POTENTIAL RATE INCREASES THERE COULD BE, UH, TO THE END USER AS A PROJECT IS PROGRESSING.
AND AS THE MONEY IS NEEDED, AS WE START PAYING OFF, UH, SOME OF THESE LOANS, THERE WILL BE A PARTICIPATION FROM THE HOUSTON WATER UTILITY, WHICH WILL BE ABOUT 1.1 BILLION AND A, A SMALL LOCAL CONTRIBUTION, UH, WHICH BRINGS US TO THE TOTAL COST OF $4.2 BILLION.
THESE ARE VERY PRELIMINARY NUMBERS.
THESE ARE SOMETHING THAT WE ARE CONTINUE TO, UH, WORKING WITH THE TEXAS WATER DEPARTMENT BOARD AS WELL AS WIA.
AND WE'RE WORKING WITH OUR FINANCIAL ADVISORS TO COME UP WITH THE BEST OPTION POSSIBLE SO WE CAN SMOOTH OUT WHAT THESE COSTS AND DEBT SERVICE PAYMENTS ARE GOING TO LOOK LIKE FOR THIS PLANT OVER THE NEXT, UH, HOWEVER MANY YEARS.
AND I TALKED ABOUT SOME OF THE, UM, UM, UH, BENEFITS FOR THE TWDB SWIFT LOAN PROGRAM, ROUGHLY ABOUT A 14% DISCOUNT FROM MARKET RATE.
AND IF YOU TAKE INTO CONSIDERATION WHEN YOU HAVE A MORTGAGE PAYMENT, WHETHER YOU'RE PAYING A 4% INTEREST RATE VERSUS A 2% INTEREST RATE, ALL OF THAT IS COMPOUNDED OVER A PERIOD OF 30 YEARS OR HOWEVER LONG YOU HAVE THAT LOAN WHEN IT'S COMPOUNDED.
AND THIS 14% IS GONNA BE COMPOUNDED OVER 30 YEARS, HAS A SIGNIFICANT IMPACT ON THE END COST THAT WILL BE BORNE BY THE UTILITY.
UM, IT IS A THREE YEAR MULTI-YEAR COMMITMENT TO THE CITY OF HOUSTON FROM THE TEXAS WATER DEVELOPMENT BOARD, AND THE AMOUNTS FOR YEAR AND TWO, UH, TWO AND THREE ARE FLEXIBLE AND WE WILL BORROW AS NEEDED.
UM, SO THE NEXT STEPS ARE THE SWIFT APPLICATION WA APPROVED BY COUNCIL.
WELL, IT'LL BE ON THE COUNCIL DATE, UH, APRIL 30TH, 2025.
THEN THE CITY WILL SUBMIT THE ACTUAL APPLICATION, BUT WE'RE TARGETING FOR THE DATE OF MAY 12TH.
AND THEN THE TEXAS WATER DEVELOPMENT BOARD, UH, UH, BOARD MEMBERS APPROVES THE APPLICATION IN JULY OF 2025.
THE FIRST LOAN INSTALLMENT OF 350 MILLION MILLION WILL REQUIRE ONE COUNCIL ACTION IN AUGUST OF 2025, AS WELL AS APPROVAL OF THE FINANCING AGREEMENT.
PLEASE NOTE THAT THE LOAN CLOSING WILL BE AROUND NOVEMBER OR DECEMBER OF 2025.
THEN THE FUNDS WILL BE DISTRIBUTED.
AND FOR THE WIA PROGRAM, AS WE HAD TALKED ABOUT, IT ACCELERATES INVESTMENT IN OUR NATION'S WATER AND WASTEWATER INFRASTRUCTURE BY PROVIDING LONG-TERM FINANCING COMMITMENTS.
SO THEN EACH YEAR, CONGRESS APPROPRIATE ABOUT $6 BILLION IN FINANCING WITH NO PREPAYMENT PENALTY.
INTEREST RATES WILL BE EQUAL TO OR GREATER THAN THE US TREASURY RATE OF SIMILAR MATURITY.
IT DOES REQUIRE THE, UH, BABA PROGRAM, WHICH IS THE BUY AMERICA, BUILD AMERICA, AND THE AMERICAN IRON AND STEEL ACT.
TWDB REQUIRES AMERICAN IRON AND STEEL.
UM, AS I MENTIONED PREVIOUSLY, WFI CAN FINANCE UP TO 49% OF THE ANTICIPATED
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COSTS.AND THE GREAT THING ABOUT THE WFI PROGRAM IS THE FLEXIBILITY THAT ALLOWS US TO DEFER THE PAYMENTS OF AFTER SUBSTANTIAL COMPLETION UP TO FIVE YEARS.
UH, WE'RE ALSO WORKING WITH THE TEXAS WATER DEVELOPMENT BOARD TO SEE IF WE CAN EXTEND OUR REPAYMENT OF THE BONDS POTENTIALLY UP TO 40 YEARS.
BUT AGAIN, THESE ARE JUST SOME PRELIMINARY INFORMATION, BUT WE'LL CONTINUE TO WORK WITH THEM CLOSELY TO FIND OUT HOW WE CAN, UH, MAKE IT THE MOST BENEFICIAL FOR THE CITY OF HOUSTON.
UH, THE NEXT STEPS, UH, WFI HAS GRANTED, WE, UH, APPLIED FOR IT AND THEY DID GRANT US A WAIVER ON THE BUY AMERICA, BUILD AMERICA, AND THE CITY IS WORKING, LIKE I MENTIONED, WITH OUR FINANCIAL ADVISORS TO FIGURE OUT WHAT IS GOING TO BE THE BEST FINANCING STRUCTURE FOR THIS PROJECT.
SO A QUICK OVERVIEW OF WHAT THE NEXT STEPS ARE GOING TO BE.
COUNCIL WOULD WILL VOTE ON THE SWIFT FUNDING, WHICH WILL BE FOLLOWED BY THE SUBMISSION OF THE APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD.
WE WILL DETERMINE THE BEST FUNDING STRUCTURE FOR WI, WE WILL INITIATE THE CONSTRUCTION MANAGER AT RISK OR CMAR AND DESIGNER PROCUREMENTS.
AND THEN, UH, WE WILL HAVE A PROJECT ADVISOR AND TECHNICAL CONSULTANT AMENDMENT AND SELECTION.
AND THAT CONCLUDES OUR PRESENTATION.
WE WILL OPEN UP FOR QUESTIONS.
THANK YOU FOR THE PRESENTATION.
WE HAVE, UM, A COUNCIL MEMBER IN Q COUNCIL MEMBER ALCORN.
I'M REALLY EXCITED TO SEE THIS HAPPENING.
YOU, I WENT OUT THERE WITH GREG AND LOOKED AROUND, GOT KIND OF PANICKED
UH, SO COMPARE HOW WE'RE FINANCING PLANNING TO FINANCE THIS, UM, WITH THE NORTHEAST PLANT.
HOW DID WE, WHAT WAS THE TOTAL COST ON THAT AND HOW DID WE FINANCE THAT? SURE.
THE NORTHEAST, AND YOU HAVE TO REMEMBER NORTHEAST WAS A LITTLE BIT DIFFERENT BECAUSE WE HAD A LOT OF CO-PARTICIPANTS WITHIN THAT PROJECT.
THE CITY OF HOUSTON, A 16% SHARE, BUT IT WAS FINANCED THROUGH THE TEXAS WATER DEVELOPMENT, LOW COST FINANCING.
AND WE'RE, WE'RE, WE'LL GET THAT RIGHT.
I MEAN, IT'S NOT LIKE WE'RE NOT GONNA, I, AND I, AND I HAVE TO SAY, YOU KNOW, WE HAVE SOME TEAM MEMBERS HERE, UH, BR JACKSON AND HER TEAM, THEY HAVE WORKED INCREDIBLY HARD.
UM, AND I, I GOTTA TELL YOU THE TESTIMONY THAT WE WERE ABLE TO SECURE THAT $966 MILLION FINANCING TO THROUGH TWDB, IT'S BECAUSE OF THE RELATIONSHIP AND THE HARD WORK OF THE TEAM.
SO THAT'S DONE, THAT'S DONE SUBMIT THE APPLICATION, BUT THAT'S, IT'S KIND OF ALREADY A DONE DEAL.
AND THE WIA, THAT'S $6 BILLION FROM CONGRESS EVERY YEAR, AND WE WANT 2 BILLION OF THAT OR CORRECT.
THAT'S WHAT WE'RE LOOKING FOR.
AND WE'VE NEVER TRIED TO GET THAT MONEY BEFORE, BEFORE WE HAVE NOT.
OR IS IT A NEW PROGRAM? NO, WE HAVE NOT.
AND THE REASON WHY, BECAUSE IT HAD A, A LACK OF A BETTER TERM, BOUGHT OF STRINGS ATTACHED TO IT, BUT WE'VE BEEN ABLE TO WORK WITH THEM AND GET WAIVERS SUCH AS, YOU KNOW, FROM BUY AMERICA, BUILD AMERICA.
SO WE'VE BEEN ABLE TO GET THAT WAIVER SO IT DOESN'T PUT AN EXTRA STRAIN ON OUR RESOURCES OR ADDITIONAL COSTS.
BUT IT'S $6 BILLION FOR THE WHOLE COUNTRY TOO.
THAT IS MY UNDERSTANDING, YES.
AND, AND, AND YOU HAVE TO UNDERSTAND, YOU KNOW, THIS COST IS NOT JUST GOING TO BE THAT ONE PARTICULAR YEAR.
THE, YOU KNOW, THE ENTIRE $4.2 BILLION WILL BE EXTENDED.
IT'S NOT ALL COMING OUT IN ONE YEAR.
AND THEN THE, THE DEBT SERVICE ON THIS, I KNOW THAT'S ALL STILL BEING WORKED OUT WITH, WITH MASTERSON, BUT, BUT HOW, I MEAN, ARE THERE ESTIMATES OF WHAT THE DEBT SERVICE ON ALL OF THIS WILL BE ANNUALLY? WE, WE ARE ESTIMATING, YEAH.
THE REASON WHY IS BECAUSE THE MARKET FLUCTUATES SO MUCH.
IN TERMS OF THE INTEREST RATE SO FAR TO GIVE YOU A NUMBER, AND IF IT SIGNIFICANTLY COMES OUT DIFFERENT WITH THE MARKET CONDITIONS, IT WOULDN'T BE A FAIR ASSESSMENT.
SO WE'RE, WE'RE WORKING WITH OUR, UH, FINANCIAL ADVISORS RIGHT NOW TO COME UP WITH A BETTER NUMBER.
AND THE, AND THE 3.3 TO 4.3 BILLION ARE TODAY'S DOLLARS? ARE WE FACTORING IN NO, IT, IT, IT'S, UH, ESCALATED ALSO.
WE, WE USE THE EXISTING NORTHEAST NUMBERS, UH, AND THEN WE LOOKED AT THE, WE DID AN EXTENSION, UH, GOT IT.
CONSTRUCTION AND, AND LEARNING THE LESSONS ALSO FROM COVID AND OTHER THINGS.
WE TRIED TO BUILD IN A, AN AMOUNT THAT'S REASONABLE THAT WE AN ANTICIPATE.
SO THAT'S A, A PRETTY GOOD NUMBER.
AND THEN, UM, ON OUR 45 MILLION, THAT'S JUST COMING FROM THE CS OVER TIME? CORRECT.
AND, AND THERE'LL BE A COMBINATION, AGAIN, THESE ARE PRELIMINARY NUMBERS, SO THERE WILL BE A COMBINATION OF CASH FINANCING, WIA FINANCING, TWDB, AND ALSO OPEN MARKET BONDS, UH, FROM THE UTILITY AS WELL.
AND THEN THE, THE PROCUREMENT, THERE'LL BE TWO SEPARATE ONES.
ONE FOR DESIGN, ONE FOR CORRECT CONSTRUCTION, OKAY.
AND THOSE WILL BE EXPECTED TO BE OUT ON THE STREETS? YEAH, SOMETIME, UH, EARLY SUMMER.
SO I WOULD SAY JULY TIMEFRAME, THAT'S WHAT WE ARE LOOKING AT.
UM, NEXT WE HAVE COUNCIL MEMBER
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SHABAZZ'S OFFICE.THANK YOU BOTH FOR, UH, THE PRESENTATION AND TO YOU AND YOUR TEAM FOR ALL YOUR WORK.
MY, UH, TWO QUESTIONS ARE ABOUT, UH, SLIDES, UH, SIX AND 11, SPECIFICALLY DEALING WITH THE CURRENT CAPACITY.
WHAT WILL THE PROJECTED CAPACITY BE ONCE THIS PROJECT IS COMPLETED? SO IT'LL BE 360 MILLION GALLONS A DAY ON THE NEW PLANT, AND WE WILL PROBABLY RETAIN PLANT THREE, SO THAT IS ANOTHER 180 MILLION GALLONS.
SO WE WILL BE IN THE, UH, PROBABLY IN THE 500 MILLION GALLONS A DAY.
SO THAT WILL ACCOUNT, THAT WILL ACCOMMODATE WHAT IS EXPECTED TO BE THE CITY'S GROWTH UNTIL WHAT, 50, 60, 70 YEARS IN THE FUTURE? YES.
AND CURRENTLY THE PLAN IS FOR THIS TO COME ONLINE IN, UM, 30, 20 34.
HOW ARE WE GOING TO, ARE WE OKAY IN TERMS OF WATER CAPACITY UNTIL THAT TIME, KNOWING THAT THOSE TWO EXISTING PLANTS ARE KIND OF AT THEIR CAPACITY? YES.
UH, THE REASON IS WE, WE RECENTLY BUILT THE NORTHEAST PLANT, UH, AND WE DO HAVE CAPACITY IN THE NORTHEAST PLANT.
WE'LL WORK WITH THE, WE CAN SEND SOME FLOWS TO THIS SERVICE AREA.
WE ALSO HAVE THE GROUNDWATER SYSTEM AS A BACKUP.
SO IF ONE OF THE PLANTS FAIL, PLANT ONE AND PLANT TWO FAIL, WE ALWAYS HAVE THE GROUNDWATER SYSTEM TO BACK US UP.
YOU KNOW, GROUNDWATER IS SOMETHING THAT, BECAUSE OF SUBSIDENCE IS SOMETHING THAT WE'VE BEEN TRYING TO BACK AWAY FROM, BUT THERE, THERE ARE BACKUP PLANS FOR THAT.
GROUNDWATER IS NOT OUR PRIMARY SOURCE.
YOU DO NOT WANT TO USE IT ALL.
UM, COUNCIL MEMBER RAMIREZ'S OFFICE.
UM, ON THE NOTE OF ILEY, I SAW ON LINK ON LINKEDIN THAT HE HAD LEFT AND I WAS VERY SAD BECAUSE HE ALWAYS TOLD US THE TRUTH, YOU KNOW, HARD NEWS.
UM, SO ON THAT NOTE, FOLLOWING UP ON COUNCIL MEMBER HORNE'S QUESTIONS, UM, THE AMOUNT OF CASH THAT WE'LL NEED TO COME UP WITH EACH YEAR TO PAY OFF THE FINANCING.
I KNOW WE DON'T KNOW THE RATES EXACTLY, BUT BALLPARK, IS IT MORE LIKE A HUNDRED MILLION? IS IT MORE LIKE 50 MILLION? JUST LIKE, WHAT'S THE RANGE OF MAGNITUDE THAT WE'RE GONNA BE LOOKING FOR FROM A DEBT SERVICE PERSPECTIVE, I WOULD ANTICIPATE A FEW HUNDRED MILLION DOLLARS, UH, PER YEAR FOR DEBT FINANCING.
AND SO WHERE, WHERE WOULD WE FIND THAT MONEY THAT WOULD BE? SO THE COMBINED UTILITY SYSTEM FOR HOUSTON WATER, UH, RECEIPTS, ITS REVENUES FROM USER FEES RATE PAYERS.
AND SO WE'LL BE USING THE AMOUNT OF MONEY THAT WE GET DIRECTLY FROM THE, THOSE REVENUES TO PAY FOR DEBT SERVICE AS WE TYPICALLY DO.
AND SO AT THE CURRENT RATES, CAN WE AFFORD THAT FOR, UH, FOR THE ENTIRE PLAN COST? NO, WE CANNOT.
SO IT'S GONNA BE UP FOR A VOTE IN A YEAR-ISH.
RIGHT? THE RATES FOR, FOR COUNCIL TO APPROVE, THERE ARE TWO COMPONENTS OF THE RATES.
THERE'S AN ANNUAL RATE ADJUSTMENT THAT TAKES PLACE THAT'S AUTOMATIC AND THAT'S BASED ON THE CPI PLUS POPULATION.
UM, COUNCIL DID VOTE ON RATE INCREASE BACK IN 2021, UM, AND WE HAVE ONE MORE YEAR LEFT OF THAT RATE INCREASE OF THE FOLLOWING YEAR.
WE'LL BE EXPECTING ROUGHLY ABOUT A 6% INCREASE.
UM, COUNSEL WILL BE VOTING ON A RATE CONSULTANT IN, UH, I BELIEVE IT'S GONNA BE IN ABOUT TWO WEEKS THAT WE'VE SELECTED THAT WILL CONDUCT A COMPREHENSIVE COST OF SERVICE STUDY FOR THE UTILITY TO UNDERSTAND WHAT THE NEEDS ARE GOING TO BE FOR THE UTILITY OVER THE NEXT FIVE TO 10 YEARS.
AND THE EAST PLANT PROJECT WILL BE A PART OF THAT AS WELL.
AND THEN THEY WILL DETERMINE WHAT, IF ANY RATE INCREASES WILL BE NEEDED.
AND THAT'LL BE BROUGHT BACK TO COUNCIL FOR A VOTE AS WELL.
AND SO THE ULTIMATE, UH, POTENTIAL RATE INCREASE VOTE IS ABOUT A YEAR FROM NOW? IS THAT RIGHT OR NOT? UM, I WOULD SAY ABOUT TWO YEARS BECAUSE IT'LL TAKE FOR A YEAR FOR THE RATE STUDY TO BE COMPLETED AND WE STILL, AND SO NEXT YEAR WE ALREADY HAVE SOMETHING ALREADY THAT'S IN THE BOOK.
SO THAT WAS APPROVED BY COUNCIL.
SO FOLLOWING YEAR WE ALREADY, UH, WE'RE OKAY IN TERMS OF THE RATE INCREASE.
SO THE YEAR AFTER THAT IS MODEL COME, UH, TO VOTE FOR COUNCIL.
SLIGHTLY DIFFERENT, UH, SET OF QUESTIONS.
CMAR, UH, DID Y'ALL THINK ABOUT PROGRESSIVE CMAR OR NOT? NOT IN OUR WHEELHOUSE.
YEAH, THERE IS, THERE IS, UH, THERE IS AN OPPORTUNITY TO DO PROGRESSIVE CMA.
IN FACT, ONE OF THE RECENT, UH, UH, CONFERENCE I WENT THERE, WERE TALKING ABOUT PROGRESSIVE CMA AND I THINK THAT CAN BE APPLIED HERE TOO.
YEAH, WE WILL, WE, WE HAVEN'T EVALUATED ALL OUR, UH, ALL THOSE YET.
UH, WE WILL WORK WITH THE SELECTED PERSON, THE SELECTED COMPANY, THEN WE WILL WORK OUT ALL THOSE DETAILS.
ONE MORE, UH, ITEM, I WANT TO GO BACK.
UH, THE, THE EXISTING PLANTS WE ARE INVESTING ON THE EXISTING PLANTS.
ALSO THE PLANT ONE AND PLANT TWO, WE ARE INVESTING SOME MONEY RIGHT NOW.
SO THAT INVESTMENT WILL TAKE US STILL FOR ANOTHER FIVE TO 10 YEARS TILL THESE, THIS PLANT WILL COME OFF TILL THE NEW PLANT.
AND WE ARE PRETTY CONFIDENT THAT THE EXISTING PLANT WILL RUN FOR ANOTHER FIVE TO 10 YEARS.
AND WHEN IT REALLY REACHES ITS END OF USEFUL
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LIFE, THE NEW PLANT WILL BE ONLINE.THAT, THAT'S HOW WE HAVE INVESTED.
YEAH, YOU CAN, SO, SO HE'S, YOU'RE SAYING THAT YOU GUYS ARE CURRENTLY INVESTING IN PLANT ONE AND PLANT TWO? YEAH.
TO, TO KEEP IT GOING, TO KEEP IT GOING.
YEAH, YOU'RE GOING, I I BRING THIS POINT UP BECAUSE RIGHT NOW I'M AWARE THAT TEXAS IS LOOKING AT WATER.
I DON'T WANNA SAY RATIONING, IT'S THE WRONG TERMINOLOGY, BUT WE KNOW THAT WE ARE LOOKING INTO WATER SHARING AND OTHER THINGS ABOUT WATER IN THE STATE OF TEXAS.
HOUSTON WILL CONTINUE TO GROW.
OUR NEEDS WILL CONTINUE TO GROW.
SO CAPACITY ON WHAT IS AVAILABLE TO HOUSTON IS VERY IMPORTANT.
THANK YOU FOR THAT EXPLANATION.
AND, AND JUST TO ADD A LITTLE BIT OF COLOR ON THE CAPACITY AND IN TERMS OF THE AVAILABILITY OF, UH, WATER SOURCES, WE HAVE A PRETTY SIGNIFICANT AMOUNT.
I KNOW THAT IN CENTRAL TEXAS, NORTH TEXAS, OTHER AREAS ARE SUFFERING FROM DROUGHTS.
UH, WE DON'T HAVE THOSE CHALLENGES, SO THAT HOPE THAT HELPS.
WHAT WAS THE APRIL AMOUNT THAT THE INCREASE THIS YEAR? SIX.
THE, THE ONE THAT WE JUST PASSED? YES.
AND UH, DID I KNOW WE'RE GOING TO SEE MAR, I KNOW THAT STRUCTURES FORMED, BUT DID WE, ARE, DO SOME PEOPLE DO PPPS ON THIS? A PUBLIC PRIVATE PARTNERSHIP ON THINGS LIKE THIS? THEY DO, BUT UH, I, IT'S, YEAH, WE DID.
WE LOOKED AT IT, BUT IT'S NOT, WE ARE NOT LIKE, YEAH.
WHY, WHAT? I KNOW WE KIND OF, WE'VE LOOKED AT IT FOR OTHER THINGS TOO AND WE DON'T EVER END UP DOING IT.
CAN YOU KIND OF TELL ME WHAT THE PITFALLS ARE OF, OF THAT SETUP? FROM MY PERSPECTIVE, UM, LOOKING AT PPPS, THERE ARE SOME USES FOR PPP.
UH, BUT THEN THERE'S ALSO AN ASPECT OF IT IS, UH, BECAUSE YOU'RE DOING A PUBLIC PRIVATE PARTNERSHIP, THERE'S AN ASPECT OF UH, UH, PROFIT THAT'S BUILT IN THERE.
AND SO THAT'S NOT ALWAYS OKAY.
UM, QUESTION FROM COUNCIL MEMBER RAMIREZ, YOU VICE CHAIRMAN RAMIREZ
UM, QUICK, QUICK QUESTION AND COUNCIL MEMBER HORD MAY ALREADY HAVE ASKED THIS, BUT, UM, THE TWDB BOARD APPROVING THE APPLICATION IN JULY, 2025, IS THAT FOR SURE THEY'RE GONNA APPROVE IT OR WAS THAT JUST THAT IF THEY APPROVE IT, IT WOULD BE IN JULY 25? WE'RE HOPING THAT WE'RE, WE'RE CONFIDENT THAT THEY WILL APPROVE IT.
I MEAN, AGAIN, I CAN'T ALWAYS PREDICT THE FUTURE, BUT WE'RE FAIRLY CONFIDENT THAT THEY WILL APPROVE IT.
AND, AND, AND I KNOW THAT SOMEONE YOU WERE MENTIONING ABOUT THE LOANS, UM, SO CAN YOU JUST CLARIFY, THE FIRST LOAN INSTALLMENT OF 350 MILLION IS, WILL, WILL BE REQUIRED.
IT'S A DISBURSEMENT THAT STATES UHHUH.
IT'S A, IT'S, IT'S A SCHEDULE.
THERE'LL BE FIRST OF MANY PAYMENTS.
I'LL BE COMING THROUGH FROM THE TEXAS WATER DEVELOPMENT BOARD.
AND I'LL, I'LL PROBABLY MORE THAN LIKELY FOLLOW UP WITH SOME QUESTIONS.
I WANT TO LIKE REALLY GO THROUGH THE, UM, PRESENTATION.
UM, AND, 'CAUSE I KNOW WE HAVE THE NORTHEAST PLANT THAT YOU GUYS, THAT'S BEING USED AS A SUPPLEMENT, AS THESE PLANTS ARE BEING UPGRADED OF ONE AND TWO BEING UPGRADED UN UNTIL WE BUILD THIS ONE.
SO I'LL FOLLOW UP WITH COUNSEL ABSOLUTELY.
QUESTIONS AND I, WE HAVE TO ANSWER THE QUESTIONS.
YOU CAN, UM, EITHER GET 'EM TO US AND WE'LL GET IT TOO.
ON, ON THE OTHER PLANTS, CAN YOU JUST RUN THROUGH THE, WHAT, THIS ONE I'VE HEARD 67%, BUT MAYBE IT'S 75% OF HOUSTON CUSTOMERS.
WHERE, WHAT ARE THE REST OF, I MEAN, THERE'S SOUTH, THERE'S E THERE'S NORTHEAST, AND THERE'S WHAT ARE, WHAT ARE OUR PLANTS AND WHAT'S THEIR CAPACITY? YEAH, SO THE NORTHEAST, UH, HAS, WE, WE ONLY GET ABOUT 16% FROM THAT PRODUCT.
UH, WHICH, BECAUSE WE HAVE FOUR OTHER PARTNERS ON THAT.
AND UH, ON THE SOUTHEAST, UH, WHAT'S THE PERCENTAGE? I DON'T KNOW THE EXACT PERCENTAGE, BUT, UH, MOSTLY 34.
IT'S 30 SUB PERCENT IF I REMEMBER CORRECTLY.
BUT WE HAVE SEVEN COPART IN THAT.
SO THOSE TWO PLANTS, THERE ARE OTHER PLAYERS IN THAT, OTHER PARTICIPANTS WHEREAS, UH, EAST IS MOSTLY EAST.
I MEAN, WE DON'T HAVE MAJORITY OF THE CITY OF HOUSTON.
WHAT'S THE OTHER LITTLE PART? WHO, THERE'S TWO SMALLER ONE, BUT IT'S, IT'S LESS DUMP THE STU THE WATER.
YEAH, IT'S A SMALL PERCENTAGE.
ALRIGHT, WELL IT LOOKS LIKE WE DON'T HAVE ANY, UM, ANYONE SIGNED UP FOR C*M.
SO WITH THAT BEING SAID, UM, WE'RE GOING TO, UM, ADJOURN THIS MEETING, BUT BEFORE WE DO SO OUR NEXT PUBLIC, OUR NEXT SERVICE DELIVERY COMMITTEE MEETING WILL BE ON MAY THE 28TH.
UM, FOR MORE INFORMATION, IF YOU ARE INTERESTED IN, IN RECEIVING INFORMATION ABOUT THESE MEETINGS, CONTACT OUR OFFICE, UM, AT 8 3 2 3 9 3 3 0 0 9 OR EMAIL US AT DISTRICT B@HOUSTONTX.GOV.
WITH THAT BE SAID, WITH BEING BEING SAID, THIS MEETING IS ADJOURNED.
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THE REST OF YOUR DAY.