Good afternoon.

We are now starting the public infrastructure and utilities committee meeting for Wednesday, March 4th.

Madam Quirk, please call roll.

Auto Woman Boyd.

Auderwoman Clark Hubbard.

Vice Chair Sweitzer.

Present.

Alderman Devotee.

President.

Auto Woman Cox Antwee.

Present.

Chair Browning.

Present.

Alder Woman Boyd.

Alder Woman Clark Hubbard.

Four present.

We have quorum.

Thank you.

And with that, we will move on to approval of the minutes.

I will accept a motion to approve the minutes from Wednesday, February 25th, 2026.

So moved.

Moved by the Alderman from the first, seconded by the Alderman for the fifth.

Madam Kirk.

Alder Woman Boyd.

Alder Woman Clark Hubbard.

Vice Chair Sweitzer.

Alder Woman Cox Antwee.

Chair Browning.

Hi.

Alder Woman Boyd.

Auto Woman Clark Hubbard.

Four eye votes.

Thank you.

With that, the minutes are approved.

We do not have any board bills for review today.

We do not have any resolution for review.

We do have one item under committee discussions, and that will be a presentation from our water division.

Hi, good afternoon.

Good afternoon.

Chair Browning, members of the committee.

Just another update, status, and then also to talk through some of the recent ongoing activities at the Water Division.

So I wanted to start first of all by uh you know kind of thanking my team.

We've been working very hard.

They're very dedicated.

You know, I highlight some names here.

Spencer Gould, our special assistant to the water commissioner, Thomas Corell, our information system support manager who helps with a lot of the data improvements and processes that we're doing.

Uh Perl Burke, our fiscal manager who keeps tracks of the financing and funding.

You know, certainly lets us know when there are challenges coming up, uh, you know, how the cash balances are flowing.

Uh and Robert Atchison, our new PIO, who has fired up many socials, uh, you know, has our website looking good, um, you know, is trying to communicate and message all the work that we're doing through multiple channels.

So all right.

So uh as I typically do, I want to start off with our mission safe, reliable, economical drinking water uh for all who live, work, and play in St.

Louis.

Um, you know, we've also been working a little bit to develop our vision statement.

Um, you know, responsibly serving our residents, uh, and that is you know something we take seriously.

Responsibility that we have to provide the service that we do, um, but also looking at our systems, continuously evaluating and improving our systems, uh, you know, the service we provide, looking ahead to the future.

Um, and then also you know, to be transparent, uh, you know, having that voice, messaging out to the public what it is that we're doing, uh, you know, improvements that we're making, challenges that we're seeing at the utility, um, you know, to be good stewards uh of the ratepayer dollars that come into the our enterprise, the public utility that we are at the water division um to provide quality city services.

And so, you know, that vision statement is is starting to come together, but it really does set the table for what we are trying to do into the next decade, 20 years, 30 years at the water division to continue serving for generations to come.

So I wanted to outline the presentation that I have for you today.

Um, you know, uh an update on the ongoing infrastructure challenges that we've been facing.

Uh, you know, obviously we had a pretty significant winter storm.

Um, you know, there were some impacts uh to the city and the service that we provide there, uh an update on our financial position, um, an update on what we're doing to outreach uh you know to the community, message to the community, uh the important work that's going on, but also the needs that continue to challenge us every day.

Um next steps.

So I mentioned the infrastructure challenges.

Um, you know, it was quite a stress test on the water system.

We have 1,300 miles of water main.

We had one of the highest number of water main breaks in recent years last year.

We continue to see the effects of this aging infrastructure, and those effects are getting worse as years go by.

And there were quite a few main breaks that occurred in that winter storm that really did stress and strain our staffing and resources, caused us to have to kick up emergency contractors to assist, and then had a financial impact as well.

All right.

So we did make the news quite a bit through that storm event because of the high number of water main breaks that we had.

But I think at this point, lots of our residents are impacted by these water main breaks.

They go to the faucet, they turn it on, there's no water there.

They reach out to their friends and neighbors on the block and find out.

They go to our website, find out that there is an outage due to that main break.

And then, of course, you know, the news does come cover these effects and impacts, you know, what it's doing to the city residents, businesses, et cetera.

So I mentioned the high number that we had so far in 2026.

Uh, unfortunately, I have to report we've had 155 main repair work orders already.

Um, you know, last year we did have 39.

Uh, so you know, we are trending in a in a bad direction right now.

Um, a hundred and twenty of those occurred during the three weeks following the storm.

So it was a very tight window, uh, a high peak of main repair work activity that had we had going on.

We had to increase pumping at our treatment plants.

In the winter, that doesn't tend to happen because consumption is typically down, but we had a lot of water loss going on, so we had to keep the system pressurized through that.

Um we did have 1,336 service requests for water issues uh this year.

Um, you know, those are CSB requests, customer service calls, dispatch calls.

Um, our average response time on those service requests was a little under eight hours.

Uh that's from the request coming in to us identifying what the next steps may have to be.

Um, and then so far this year we've had over 13,000 calls come into our customer service and dispatch.

Uh I do want to point out that less than one percent of those calls were transferred.

So we are typically triaging and handling those as that request comes in, uh, you know, creating a uh next step a plan to address these concerns.

Uh this is a little bit of a busy chart here, but it just kind of shows the peak in the storm impact that we have.

Uh what you see here is uh a look from the beginning of the year till uh you know just yesterday.

Um the red line there is service requests that came in.

You can see that I've highlighted a section in blue there.

That is the storm response uptick, uh, you know, that tight window of two weeks where we had a very high number of calls coming in, a very high number of water main breaks.

Um, and you can see there just before that, actually, uh executive order 94, the mayor declared a state of emergency due to the winter storm coming that did drop nearly a foot of snow on the on the area in the city.

Um I've also put a yellow line there that shows the temperature, the low temperature.

Um, you know, as these main break activities came out as the snow dropped, uh, the temperatures dropped as well.

We got into negative uh you know degree Fahrenheit uh lows.

Our crews worked through that because of the state of emergency.

Um, you know, there was no choice.

We had to repair these water main breaks, we had to restore water service to provide that city service, but also minimize the impact and loss of water in the city so we can maintain pressure in the system.

Um, you know, that highlighted area too.

We did have uh a hundred work orders.

I mentioned in the three-week time frame, we had 120.

This is just a two-week look, uh, you know, close to 700 service requests.

Our peak uh call volume day, we had almost 600 calls, 599 calls that I mentioned the the storm response.

We did participate uh actively in the winter weather unified command calls that City Emergency Management Agency stood up uh in the EOC.

Sometimes it was virtual, sometimes it was in person, but we were tracking the impacts across the city with all city departments, close coordination with CEMA, with the mayor's office, you know, with first responders in police and fire, and all city departments that were working together collaboratively to ensure that there were no impacts that weren't being considered, weren't being responded to when collaboration needed to happen between departments.

It was happening seamlessly and quickly.

Obviously, we had all of our crews on deck.

They were working extended hours.

We had our contractors as well.

So we tried early on to address these as quick as we could.

And then we did start falling behind a little bit.

But I want to commend the activities of our water division staff.

They are hardworking, dedicated individuals that keep water flowing in the city of St.

Louis and keep water in the pipes.

So our emergency repairs did have a financial impact.

This chart only tracks our payroll for a handful of pay periods through the event that I'm discussing here.

You can see that typically we're a little over 100,000 in overtime on average.

And during that peak of that emergency response, uh, you know, we're nearing $350,000 in overtime expenses.

That is just a portion of the costs.

This does not include restoration costs, contractor costs, material costs, equipment wear and tear.

Um, but as you can imagine, those effects were felt in those spaces too.

So the funds that are needed to continue operation and response are critical when we have these kinds of emergency events to continue providing that city service that we do.

So that takes us into our current financial position.

Um, you know, last time I was here, I highlighted that we projected a negative balance of approximately $8 million at the end of the fiscal year.

Uh, unfortunately, the projections are now a little bit worse, uh, though historically there are some billing cycle uh you know related issues that happen in January that do cause a little bit of a dip in revenues.

Um so you know, we are doing uh multiple things to make sure that we're watching this closely, um, you know, making sure that we're uh making smart decisions with the money that we do have to continue operating.

Uh this doesn't include the ARPA reallocation bills.

Uh I want to thank you, Otterwan Schweitzer, and you know, the rest of the members of the committee that worked so hard to you know take those bills up in the committees that you did and take a hard look at to see what money could be coming to the water division that was at risk of not being spent elsewhere in the ARPA uh space.

So uh board bills 160 and 161.

Um I do have an update here.

Uh I think I've not put that in the slide, but uh it did come out of HUDS Committee, and so it seems like we are moving in the right direction to get uh both of those bills advanced to get that funding to the water division.

So we're hopeful that it will still allow us to complete three of these projects that we have identified to start with.

Um, these are main repair projects uh that have caused us to have high costs in emergency main repairs.

Um instead of just doing the repairs, we're gonna be proactive to replace sections of Maine.

Um, that'll be a little bit more of a long-term solution.

We'll reduce the emergency costs at those locations with the main breaks associated with those uh pipe segments.

So I talked about some of the things that we're doing to you know ensure that we can continue watching the cash closely, continue to operate.

Revenue collections is one of the big things that we're doing.

Um, you know, the moratorium on water shutoffs was lifted by the mayor back in summer.

Uh, you know, we notified our delinquent customers who had a balance that was delinquent on their accounts.

Um, you know, we started going out there and notifying properties that were at risk of being shut off with tags.

Um we started shutting water off uh you know across the city uh with the staffing that we do have, which is a little bit strained due to vacancies, but we're continuing to ramp into that program, build that capacity out.

Um we are issuing a final service disconnection notice letter to all of the residents that are still behind.

Um, you know, our goal is to normalize our collections to improve our cash flow uh to be able to operate uh, you know, moving forward here.

So it is not to terminate accounts.

We want people to contact us.

We do have a utility assistance program that still has plenty of funding available.

We've expanded the eligibility criteria for that ARPA funded program.

We encourage residents who are having trouble paying their water bills in the city to contact us to see if they're eligible, to get that one-time payment of up to $500 and get into a repayment plan to get back on track.

I've got a few QR codes that are on that letter.

One of them is to pay your bill online, and one of them is to directly apply for that program.

And so this will go out to you know uh thousands of customers who are having trouble with their accounts with delinquent balances to give them options to get back on track and contact us.

Uh brief update on the rate sufficiency study.

Um we are nearing completion in that study.

Um, you know, that study aims to seek uh to provide clarity on five years of past data for revenues and expenses, uh, make projections through a financial model.

Uh, we do anticipate we'll have uh some clarity on that in the middle of March here.

So um just around the corner.

Uh we are attending public outreach meetings um, you know, wherever we're presented with opportunities to explain, you know, some of the things that we're doing, uh, discuss, you know, the impacts that may land on customers' bills and and talk about feedback.

Uh from here, I'm actually going to pass it over to my special assistant, uh, Spencer Gould.

He's been doing a lot of this uh outreach in the community, uh, you know, reaching out to people who uh have forums for us to discuss water-related issues with them.

Thank you.

So as near discussed, I'm gonna go a little bit.

I'm sorry, sir.

Could you introduce yourself to the public in your title, please?

Yes, ma'am.

My name is Spencer Gould.

I'm the special assistant to the water commissioner, City of St.

Louis Water Division.

Worried about that falling.

Okay.

Uh as Nears mentioned, I'm gonna talk a little bit about the outreach that we're doing.

Um, so he mentioned in our vision about stewardship and stewardship is something that we truly believe in.

And a big part of that is not only providing safe, reliable, economical water, but also engaging with the public so that they know what we're doing.

Um, it's some feedback that we've gotten.

We've taken that feedback and we've implemented it.

We've been pushing very hard to improve uh what we've done in this field.

And I'm gonna go in detail a little bit about what we're doing.

So, first things, just as Nearge mentioned, talking about the work that we're doing.

So we're expanding our opportunities for the public.

We're doing, we're pushing very hard for advanced notice so that these meetings are meaningful.

If we're there by ourselves, it doesn't help people.

People need to know about them, people need to be there.

And so we're pushing and we're utilizing our PIO uh to not only make a better effort of being in the community, but letting people know that we're going to be there.

And we'll cover these topics anywhere.

I put up hey, invite us, but you know, everything from legislative meetings to neighborhood meetings to community events.

If you've got a knitting group, I'll come out and talk about the what stuff we're doing in water because it's important to me.

Uh, I also put up the PIO email on there.

If you want to reach out to us directly, if you've got an event, if you've got something with a group of people who are interested in this topic, let us know and we'll make every effort we can to be there.

I talked a little bit about proactive messaging.

Um, this is us, you know, doing the things that I'm saying.

This is us going in the field, talking to newscasters, talking to reporters, informing the public about our work.

Uh we're beyond just responding to queries and questions.

We're pushing, we're actively seeking and fulfilling uh opportunities to get this information out.

Um so on that same line, just let us know and or keep an eye out and we'll let you know.

We're building out our social media, um, our push there again for being accessible, engaged, timely, educational, informative, and invitational.

We want people to know about us.

We want to be transparent and open about the actions that we're doing, educating the public about our challenges.

And so a big push to that is social media.

It's not something that we had more than four or five months ago in a significant form.

And we've dedicated that, we've built out these websites, we're building programs.

This is something we care about, and we're pushing to do.

So follow us.

Uh go to these things.

There's information there, information about what we're talking about here for rate review, but also about outages, also about the work that we're doing in the community.

And so if you want to know more about this topic, go to these places and follow us, and we'll we'll be able to provide information.

Accessibility and transparency, as I mentioned, is important.

On every single water bill that we've sent out, we have this note.

Uh learn about our upcoming rate change proposal.

Visit STLwater.com.

So we're doing it there.

There's a link there to our uh Facebook page showing the invitation for this event that went out on February 28th.

Uh, we were trying to notify the public to be here that we will be here and to provide comments.

There's also the recording of this meeting.

So when this goes up, we'll put that on our website and it'll be available.

Public comments will be accepted at any meeting.

Our meeting materials will be available for everyone.

Those event dates and times will be posted, and we'll make every option we can for virtual accessibility as it exists in any ADA accessibility things we need to do.

There's also a link there to send questions to send questions directly.

So if you are in the public or on the board, you can reach out to us.

Rate review at stlwater.com.

That email will come to us.

We will document that question.

We will treat that as public comment, respond to it, and then put that on our website for information.

And then talking about the website, this is our rate review website.

So we built this out specifically for this process.

It is a single hub for all of our information.

It has our background information.

It has the documentation that we have for these meetings.

It will have documentation for future meetings going forward, financial information, reports, anything that you need that helps build uh or helps understand this, and then we use to build this case will be available to the public there.

So there's another QR code there to see uh scan if you want to access it.

Um, and then I'm gonna pass it back to oh uh one last slide here.

This is our engagement timeline.

So sharing what actions that we've taken and showing folks kind of where we are along this process.

So there are steps we've already taken.

There are things that we're doing right now, and then there's a plan for looking forward in the future.

We've sent notice, as I mentioned, it's on those bills.

We have this first public meeting here on January 14th, which we appreciate the public infrastructure and utility board having us.

And then what we're doing right now in March is uh hopefully late March, posting that rate sufficiency study with a draft rate, as Nearage mentioned.

We have this meeting right now, and then we'll be sending, hopefully sending meetings for public outreach meetings, uh, sending notice of public outreach meetings going forward.

And then uh the next steps in that process are listed there for you guys to be aware of what we're doing.

And then I'm gonna pass it on uh back to Director Patel to talk about.

All right, thank you, Spencer.

So this is a little bit different timeline here.

Um we are working on a rate review process right now.

Um, you know, identifying the steps that are necessary within a rate review process.

You know, we're trying to follow that process right now, but moving forward, having something that is documented, a procedure that we will follow, requirements that we will have that provide for that notice that provide for that engagement, that information sharing uh that provides time uh for reaction to these things.

So yeah, we do have a uh step five that we are here.

Um, you know, we're a little bit ahead of it, but the draft rate review proposal is something that uh, you know, is just around the corner.

Uh Alderman Devoti, I know you asked last time about us coming and presenting that.

We would like to do that.

Um, you know, that I think is uh appropriate next step.

The recommendations within that proposal, um, you know, to get that give that information to the public and also hear reaction comment from that.

All right.

So this is a little bit exciting for uh us to talk about, but it is a little bit sneak peek into the water water master plan.

Uh it's a little difficult to see.

We zoomed in on some of the things so that maybe you can see it a little bit better.

But um, you know, this is uh a look into the water main risk assessment doing.

Um, you know, one of the things that we're working on is identifying projects that are critical, projects that will give us the most benefit uh for our money, uh, you know, return on our investment.

And so uh the color grades that you see on that map for the uh risk failure scores uh go from highest uh 60 and over that are in red.

And as you can see, there's some of that on that map.

Um, you know, that grades down into that orange and you know, yellow and green colors.

Uh, and then you know, some of the gray that you see there is uh blending into the background, but that's a very low risk score pipe.

It has not had a break in the data set that we analyzed with uh the consultant that's doing this master plan for us.

Um, and you know, that data set does go back to about 2016-2017, so it's not comprehensive, but it is comprehensive enough.

It has a very high coefficient of determination that shows that this data set is strongly correlated, correlated to build uh a pipe break model.

That model is what drives this visual here in the map.

Um, so we've identified that over 90% of the pipe segments uh you know are not problematic for us.

They have a very low risk score.

But that does leave 10% of pipes that should be looked at and evaluated for projects to do water main replacements instead of water main repair.

That risk score over 30 is the focus right now for project identification.

And again, as you can see, there's weights on these lines too for larger diameter mains that have a higher consequence of failure.

But it is a pretty comprehensive formula that informs the next steps, building out the project list.

And you know, this is kind of an interim project product right now, but uh we are working to develop that full uh outcome of that water master plan in the water main assessment and project development into a CIP.

So these two maps you're looking at here uh are a little bit uh shorter term.

Um you know, we call them buckets one and two, whereas bucket three is a long-term bucket.

Um on the left there, you see completed projects.

Um, you know, we're not new to replacing water main.

We just don't do quite a bit of it.

It's as funding as available, but we do have two ARPA projects that are completed.

Um, you know, East Grand Avenue and Hall Street, Clayton and Big Bend Road.

Um, you know, one of them was a 60-inch water main that was leaking that we replaced uh, you know, uh a few pipe segments of in a very busy intersection uh to bring you know resiliency and and reliability back to that area.

Um the other one is uh a main segment that we had many multiple breaks on.

Uh we hope to reduce the number of emergency main breaks there.

Uh we did do some budget-funded water main replacements uh in the past few years.

Uh, you know, I've just highlighted a couple of them.

One of them was on Marconi Avenue between Bishop and Elizabeth there.

Uh, we paved that entire roadway as well, so it's very recognizable as something that you know recently was done by the City Water Division.

Um, and then Holly Hills Avenue between Hampton and January.

So uh I we did identify earlier those three main replacement projects that hopefully we can fund with the ARPA reallocation money coming in.

Um that's Bercher and Semple, Kia Cook and Alexander, and Weber and Morganford, and then two bonus streets uh at that last one that have had a high number of breaks in the most recent 10 years.

Uh this should reduce emergency repair costs in those areas.

So we do have long-term needs as well.

Um, I mentioned the short-term buckets there.

Now we're getting into the line.

Uh we did very recently uh amend and submit, resubmit our state revolving fund application, uh, which was on the books.

Uh it's now 65.9 million dollars.

We've increased the number of water main replacement projects that we are planning on tackling.

We've increased the number of resiliency projects, uh, renewals at the treatment plant uh based on recent emergency costs, uh trends and chemical costs.

We're trying to identify the the projects that will get us the most immediate return for that money.

Um we are applying pretty aggressively for grants.

Um we have been awarded uh number of grants in the lead replacement and identification field.

Um you know, we have a fluoridation grant to uh rework one of our chemical storage tanks.

Uh, we have an energy efficiency and resiliency grant that we applied for uh to provide some weather-related uh climate-related backup power uh at both the treatment plants and out in the distribution system.

We're still waiting to hear back on that one, but it is a $2.3 million project that we submitted.

We think we have a strong project there uh to provide resiliency through some of the more extreme weather events that we're seeing.

Uh and then we were awarded a cybersecurity grant, uh 175,000.

There's a little bit of a matching component there, but uh with the recent events going on in the news, uh, as everyone can you know surmise, we are closely monitoring risks in that space.

Um, you know, the water system is certainly uh expansive and has some controls, some safeguards in there.

Uh, this would bolster some of the existing processes that we have to be able to react and prevent those issues from occurring.

Um we are also looking at the you know one-time funding buckets that are out there again, continuing reallocation uh money that may present an ARPA uh RAMS funding uh to support this aggressive and comprehensive capital improvement uh plan that we have.

And that would help defer some of these rate increases that may occur as part of this renewal, as would bonds.

So uh I mentioned that state application, 65.9 million dollars.

Um, you know, we've identified 36 water main replacement projects that we can fund with that state revolving fund loan application.

Uh our desire is to maximize uh you know subsidization grants that can come out of that too for disadvantaged community-related investments.

We do have 13 of these projects in identified disadvantaged communities in the city of St.

Louis.

Uh we would push for grant funding for you know some of this this work.

Um, that 20 million dollar estimated cost for these projects would be spread out over three or four years uh in a loan that we would get from the state that would have a very low interest, would be subsidized.

Um it would replace 11 miles of water main.

It would start building capacity for meaningful and aggressive renewal of water mains in the city of St.

Louis.

Uh again, mentioned that that's less than 10% of the system that even shows up on our risk matrix to identify for projects.

And so as time goes on, you may have new main segments that would show up in that.

So it's an ongoing effort to try to ramp into replacements and then continue that work um you know in perpetuity to make sure that we're addressing issues.

Sometimes it can actually come back down too.

So if we end up getting a meaningful amount of replacement done in 20 years, then we can actually maybe consider uh you know reducing the number of replacements that we're doing at that time based on the number of breaks that we're seeing.

Um, by year seven within our 10-year plan, we're hopeful to be spending $15 million a year in water main replacements, um, you know, as part of an ongoing CIP.

Uh that total number right now for 10 years looks like 110 million dollars, but again, we're early in the process.

This is just uh uh an number that we've identified currently.

The water master plan will identify the full project list that we'll present when that product is ready in uh summer.

So failure is not an option, right?

I mean, uh reliable water service, it's essential for a city.

Um, you know, there are costs associated with uh these failures that we're experiencing right now, hard costs, soft costs, but uh you know, we are committed.

I think that you know the residents deserve this safe, reliable drinking water that's affordable.

And so uh, you know, this is something that we take very seriously.

Um it is our responsibility.

We do intend on being good stewards of any dollars coming our way through rates, through a diverse funding stack, through bonds, through loans, through ARPA, through RANS, uh, to put that money to good use and maintain that reliable service that everyone uh comes to you know uh need every day.

It is our promise to our customers.

So safe, reliable, economical water for all of St.

Louis yesterday, today, and tomorrow.

And then we're listening.

Um, you know, again, we want to engage with the community, we want to engage with the elected officials uh and be collaborative in this process.

So uh that's all I have.

Thank you once again for uh informative um presentation, and uh really appreciate the work of the water division and its uh staff that we know have been working hard.

Um just on a personal note, want to also wasn't mentioned in these slides, but uh the 15,500 fire hydrants that you also maintain made a fire during those weeks in January when the weather was uh freezing and uh there was an apartment building that went up, and I think we would have absolutely lost more had uh the hydrants not been working and then be able to get the water on that fire and keep it from spreading to nearby buildings.

So I think that's a crucial part of our infrastructure when it comes to not just the taps that people want to have clean water come out of, but when our fire department taps into those hydrants, uh it's an emergency and it needs to come out and uh and fast.

So uh we really appreciate all the work that's being done to maintain our infrastructure, even as you struggle with resources.

Um I think we have uh very few people here, so I'd like to see if we have anyone from the public.

Uh we have two who signed up.

Okay, we'd love to hear from them first.

Did you want to swear them all in at the same time?

I can do that while too.

Yeah, um, so if you're playing to speak, please raise your right hand.

Uh, do you swear that tell the truth and the whole truth?

Excellent.

First, we have Mr.

James Hinkle of the Fourth Ward.

Yes.

Hi, my name is James Heinkel.

I'm uh resident and a homeowner here in St.

Louis, Missouri.

President, members of the board, appreciate this time to get to speak.

Um initially I was here.

Can you hear me all right?

Thank you.

Hello?

anybody?

You look anyway.

Um I'm here for two different things.

Um I wasn't actually here for per se for the water.

But living on Arsenal Avenue, I did have a water main break in front of my house.

Um I have a compliment and a criticism for the uh water department.

Uh the criticism is it started out a small leak, and uh we called it in, you guys came out immediately.

I was really happy to see that.

You put a plate over the leaking water, and it continued to leak for three days in sub-zero weather.

My car was absolutely encased in ice.

I had dug it out from the heavy snow that we got, and it made a perfect bathtub for the water to collect in and encase my car.

Now, for the compliment, after you the the team did come out, he brought his excavator, he had a chisel on the end, and he chiseled the cars out of the ice, and the neighbors helped.

It was pretty awesome.

I mean, the the guys were just super, super nice, super friendly, and good at what they did.

And uh, and I want to thank you for that.

I appreciate it.

I know from looking at the screen, if that was a boat with that many holes in it, I wouldn't want to be sailing on it.

And I and I realize you've you guys got a lot on your plate.

Now, being a retired resident of the city of St.

Louis, my second concern is cost.

You know, reliable water is important, as you pointed out, safe water is even more important.

Uh the quality of our water is very important.

Um, I'm concerned with that.

Um, as far as the service goes on the street, we never lost water.

I was happy with that.

Uh the communication was good.

I appreciate that.

So more than not, I would I would I would rate you a above more than be than than below.

You know, like I said, I I know you guys were busy, there were a lot of breaks.

So knowing that, I just want to say thanks for for you getting it done.

And it looks nice, it works well.

Everything's great.

Now, for my second issue, um, and I'm not sure this is the right form for this.

Um, I grew up here in St.

Louis City.

I went to St.

Mary Magdalene, I went to St.

Mary's High School.

Um, I lived here my whole life.

My dad played ball here.

Um, you know, my brothers and sisters are all raised here.

We used to work on the SS Admiral years ago when it was docked down on the riverfront.

A lot of people don't even remember the Admiral.

And like I said, I I saw that it's an infrastructure meeting, so I'm gonna I'm gonna put the Admiral as kind of an infrastructure thing.

It's it's the riverfront.

But what I'd like to propose is bringing back the SS Admiral.

I know it sounds crazy, and the old admiral, as great as she was, 374 feet wide, 90 or 37 feet, four feet long, 90 feet wide, five decks, open air, top deck, ballroom, and uh and and it also had a uh a first deck which was for the arcade.

My proposal would be to basically get a GoFundMe page.

I'd like it mostly done by the public.

If if we have to get a ballot, you know, I'll get the signatures and put it on a ballot.

Maybe uh my alderman can help me with that.

He's not here, but uh anyway.

I've already done some of the numbers.

We can get the boat built for about 90 million bucks.

I think where we're gonna run in, yeah.

I know it sounds like a lot, but you know what?

We're we're talking five stories and a very large boat.

Um it would be beautiful, and I'll tell you what, as far as uh ballpark village, the soccer park, the aquarium, it would revitalize LaCleed's Landing.

It would it would just bring it completely back.

Um if we had some of the people, maybe Edward Jones.

I uh I know the Taylors, um from uh executive leasing.

My my cousin is is a is a partner with Edward D.

Jones.

I think we could get the funding.

I I I do, and and obviously water is the most important thing here.

You know what I mean?

You know, survival is a lot more important than recreation.

But you know what?

A city isn't anything if it doesn't draw tourists into the town.

And we got the St.

Louis Cardinals.

We got the soccer club.

I think it's important.

I and I hope you guys think it's important that we have good recreation here.

And and I'm talking, listen, I don't want to see it go like the Admiral went, and I am I going past the time.

Thank you.

Just an extra second, just an extra second.

After 1978, they made it into a casino, which ruined the boat.

It was this huge eyesore on the city.

It had this big purple conglomerate on the eastbound side of the river, and it ruined the boat.

What I propose is bringing the admiral back like it used to be scenic river cruises.

No gambling, you know.

It would be great for teenagers.

They could come on there.

God knows they need a place to go to, you know, family time during the day.

You know, they had the collider P up on the top deck.

Um the bottom deck.

I used to work there.

I was at the arcade.

You could put in a Dave and Busters down there.

Buffalo Wild Wings on the fourth deck.

You a big brass ban on the ballroom floor.

Just picture it up and down a river, this big beautiful gleaming ship back in St.

Louis.

St.

Louis is a river town for crying out loud.

Our flag is three rivers.

Anyway, that's my segue.

The river is the water, and the water is with the water division here, and that's all I got.

Thank you.

Thank you so much.

Appreciate your testimony.

And uh just FYI.

I know the sheet metal workers are actually working on a replica of for the uh 250th Day of America.

So it's gonna be at the Museum of Transportation.

Uh not the actual Admiral, but it it is a nice tribute.

But it's perfectly built to the same specs at one twentieth of the size.

I'm I'm looking forward to seeing.

Really cool.

Thank you.

Thank you.

Thank you.

Next, we have Ms.

Sandra Pad.

Paget, I'm sorry.

You got it.

It's Pageant.

Thank you.

Um good afternoon, Chair Browning and members of the committee.

Yeah, the the Admiral was loads of fun.

I had I had fun going there as a teen until my dad prohibited me from going back there ever again.

Anyway, I'm here to talk about water.

And I um I first want to acknowledge and thank both the water division and members of the public infrastructure and utility committee for working with us to put together a draft rate review process.

And we're especially excited about the last draft that we saw that Mr.

Gould sent us that lays out a procedure for stakeholder and public engagement and the development of a formal rate proposal.

We believe that these steps are essential to ensuring transparency and public trust, and that's something that Commissioner Patel started out with was the emphasis on transparency.

Um we are concerned though that we have not received a formal proposal.

We know that a rate sufficient study is being worked on, but we want to be sure that there's not any confusion about the announcement of planning to request a rate increase and actually presenting a real rate increase.

Um right now we don't have anything that shows the current rate in effect at the time of the request, the specific proposed rate adjustment, the percentage increase, the estimated revenue that would be generated by the increase, and as we've talked about, a supporting rate sufficiency study.

Uh, we do believe that without this information, stakeholders and the public can't meaningfully evaluate that proposal.

So we're respectfully requesting assurance from this committee that once a formal rate proposal is released, including the rate sufficiency study and full supporting financial documentation, that stakeholders will be given an adequate time to respond.

We believe that a minimum of 60 to 120 days is necessary to conduct a thorough review.

And we do intend to engage a qualified local expert to analyze this proposal.

Uh, we talked to people all around the country, and we really decided that someone from this area would be best.

But in order for that review to be substantive and constructive, we have to have access to the rate sufficiency study and all underlying financial data.

And that level of transparency, we believe is not optional.

It's fundamental to good governance.

We do anticipate that our expert may recommend evaluating the issue of the bonds as a potential strategy to fund infrastructure needs.

So we think that the review of someone, you know, not within the water division could be helpful.

And we believe that that option would deserve thoughtful consideration.

Alongside any proposed rate increases.

So your decision, we believe, will ultimately be strengthened by receiving analysis from more than one source.

We think that an independent review builds credibility and public confidence in the outcome.

We look forward to continuing to work collaboratively and constructively, as we have done.

We've really built a great relationship, I believe, with Spencer and Nearage.

And some of those pictures that they showed, I identified at meetings that or other areas that we had invited them to come to.

And our goal is not to delay the process, but to ensure that any rate adjustment is fully supported, clearly explained, and fair to the community.

Thank you very much for your time and consideration.

Thank you.

And with that, uh we will go ahead and uh go to committee questions.

So I will start with Alderwoman Schweitzer.

Thank you.

Thank you so much for coming and giving that presentation.

Every single time I hear from you, it uh reaffirms the commitment that I have to the water division and this incredible resource.

We have to do whatever we can to protect it for now and for future generations, as you mentioned.

So thank you for always giving us so much detail in the presentations and really telling it like it is.

That's just crucial for our residents to understand the situation of their asset, which I always feel it's important to speak on because it isn't a utility that is privately owned.

This is a utility that this people of the city of St.

Louis own.

And so when we invest in that, we're investing in ourselves in our future.

So I always think it's important to say that.

Um the state revolving loan, that is such an important piece of this, and that revolving part of it is that hopefully if the loan comes in, it can keep you know, continue to come back and continue to be paid for.

Can you talk a little bit more about how that loan works and just the likelihood of receiving that over $65 million that you mentioned?

Sure.

So the revolving fund loans have been around since the 90s.

Um, you know, they are a product of the Safe Drinking Water Act and uh, you know, the commitment to improving water quality, reliability, access, protecting source water uh in the United States by the federal government.

Um, you know, what it is is uh a commitment by the federal federal government to um allocate appropriate money annually to the states for the purpose of water infrastructure renewal with a reliable funding source that is accessible to public water.

So you know, in the absence of products that uh were financial, you know, loan products uh you know that were conducive to this this need, um, you know, there was a lot of gap in funding.

And so when these came around, it provided a reliable funding source.

Um, you know, through various years and laws, the the funding is increased or drawn back down.

Um, the bipartisan infrastructure law uh allocated quite a bit of funding to the SRFs.

Um, you know, that added uh new allotments that were uh infrastructure law related that added to the existing general allotments that were coming through.

So, for example, the state of Missouri tends to get you know anywhere from one and a half to a little over two percent of that funding uh federally uh nationally, and in those uh infrastructure law years, we were getting uh into the state a combined uh you know allotment of over a hundred million dollars at times.

Um, you know, this is significant money to reinvest into the water systems.

In the state of Missouri, it's a subsidized product.

So that loan commitment um the week before you close on that loan, the market rate that is out there, 30% of that rate is the rate that you lock in at.

The state buys those bonds in a direct purchase agreement to back that that uh you know revolving nature of that product.

And so uh the interest rate is subsidized, the state directly buys the bonds from the city, uh, we sell them, and then the money is available for that those capital projects that are identified in that application.

So when we applied previously in 2013, we had a little over $9 million loan that we applied for that was able to get 14 projects completed, main replacement projects, pump replacement projects, um, you know, the the uh amount of stretch that those dollars uh you know put out there was pretty significant uh compared to now.

So you know, we knew we needed to do more investment.

Um, you know, we tried to actually go after more of that product, but we ran into the the rate issue.

Our rates were not sufficient to pay that level of debt back.

Um even that loan was under 10 million dollars.

Now that we're seeking 65 million dollars, um, and these are 20 year terms, you know, with that interest rate, and there's a little bit of a processing fee, a finance fee there, but um, you know, you'd probably be looking at three or four million dollars annual debt service from this loan.

Uh if we follow that up with another loan uh application, um, you know, three or four years down the line to continue the work, um, that would add to that debt service.

Um, you know, as one loan rolls off, you still have more loans coming in, and so you're building debt slowly, but needing to set rates uh adequate to pay that debt down slowly over time rather than all up at once.

I think that's a really important point for how increasing rates can help with borrowing more money to keep rates lower for the long term, which is important.

Um you talked about the state revolving loan fund being um bonds, but there's also the possibility of doing issuing other bonds from the water division.

Do you anticipate that both of those things will be part of the rate sufficiency study that we get information on?

Yes.

So we're looking at uh you know, a diverse funding sack again, even in the rate sufficiency study.

Um we're evaluating multiple products uh you know that are available, including uh you know, using our budget funds to supplement some of the smaller projects that we've been doing ongoing, uh, but also cash financing some stuff, uh doing traditional bonds, you know, the open market.

Uh there's other products that are out there as well, but we're evaluating them all.

Um, you know, the water infrastructure uh, you know, innovation finance act, WiFIA is another product that we looked at.

Um, you know, some of those products come and go as far as the funding cycles uh you know through Congress, um, the appropriations that are that are let on that.

Um as the bipartisan infrastructure law funding uh actually goes into its final year in this 2026 allotment, um, you know, we'll go back to probably the the pre-infrastructure law level uh allotments of of funding into the SRF.

And so right now I think there is money available there, but it is the state uh you know, uh Department of Natural Resources and their financial assistance center that maintains that.

Um, you know, they update that intended use plan annually uh as these applications come in.

And so when we amended our project application up, they're evaluating that, and that'll either make the full cut or they'll let us know that there isn't that much funding available.

Got it.

Um I appreciate that.

And I'm looking forward to seeing the capital improvement plan and all of this laid out in a timeline.

Uh I think that's really important for us to understand and know how we're moving towards solving this, as you've mentioned before, over 700 million dollars of capital needs.

Uh, I think that's really important.

Um just a few more questions.

You mentioned uh, you know, excess capacity of the water division a number of times, and I know there are some sales of water to other places, and that a cost of service study is forthcoming with how the how the city does sell its water and who it sells it to and uh the difference of rates.

Um do you have the excess capacity of the water division quantified?

Um, so we have the design capacity of the treatment plants.

Um, you know, over the years, uh, some of those assets that you know have been uh you know falling into a little bit of a deferred maintenance role.

Um, you know, they are taken out of service, and so it is degraded, you know, uh degraded somewhat, but the Howard Bend treatment plant has produced um you know, I think 86 million gallons uh in the summer as a peak, for example, and then the chain of rocks plant um has produced in excess of 120 million gallons in the summer as a peak.

So um, you know, there is more capacity with the system average daily consumption uh in the system is about 125 million gallons a day.

Okay.

Um with the rate review timeline that you had on the screen.

I know Ms.

Padgett from the Consumers Council said 60 to 120 days of having that information and being able to review it.

Is that is that 60 day period?

It seems like the March to May timeline gives us that 60 days of having a draft proposal and getting to an actual bill in front of the board of aldermen, which actually would put it into possibility of being put forward.

So do you have any comment on that?

Sure, no, I I do think that you know that shorter end of that uh you know does seem like something, you know, especially with the timing of the study uh anticipated coming out, um, and then you know, when uh the legislative session opens back up.

Um but one of the things is is you know the situation is dynamic.

We are looking at it weekly, we're looking at it monthly, we're looking at it daily at times.

Um, you know, as uh cash receipts come in and as expenses go out, as emergencies occur.

Um, you know, we can't forecast or anticipate the next emergency.

And so um if there is something that changes in that time frame, um, you know, I I think that we need to be ready to re react to that in real time.

Um so no guarantees, but yeah, I do think that that 60-day time window would allow for you know the study's completion, a recommendation out of the study, um, a review of that by the water division, a presentation of that, you know, to this body potentially, um, you know, sharing that out uh to be transparent on our website on our water rate review page, um, and then coming up with that draft proposal based on that uh, you know, to inform the next steps.

And I think the goal that I have, and I think you share is that for this not to be something that is unpredictable.

You know, we want to be in a situation where the water division rates are can you know consistent and people can predict how much they're going to increase based on a capital improvement plan and less emergencies.

I think that's what we all want to see.

So I know this is something where we got ourselves in the situation because rates didn't increase for 13 years.

13 years, um, which is doesn't really make sense.

It's it's in one way it's great for the consumer because their rates don't go up for 13 years, and another way it's not great for the consumer because when they do go up, they have to go up commensurate with how much they would have increased had there been predictable rate increases in a more consistent manner, which is just something that we really need to be thoughtful of.

Again, especially because this is our utility.

This is like if you don't do any maintenance on your car for 13 years and you still expect it to work, it's just not gonna happen.

So I really appreciate um you coming here and being so transparent about all of this.

And I think that um, you know, it's incumbent upon us to keep listening and keep uh advocating for you as as much as we can.

So thank you for your time today.

All right, thank you.

Appreciate it.

Of course.

I believe that all the one cox and we had to jump off the call.

So um, but Alderman Devotee.

Commissioner, uh first, uh, thank you for coming here today.

I feel like every time I listen to you and participate in one of these conversations, I learned more.

So thank you.

Uh I also want to thank you for your work and your crew's work, the division's work over our late January, early February storm.

Uh you and I spoke throughout, and I'm sure you spoke with a lot of people.

Uh I know you mentioned that the response wasn't as fast as you would like it to be.

Uh I think we can all agree under the circumstances that your crews did a an admirable job.

So thank you.

Um we have recently been talking about two issues in the fifth ward that I think are probably pretty common across the city.

And that is dealing with the aftermath of those emergent repairs.

Um the idea being that your crews did work in late January, early February, and now we need to fix or repair the roadway, or we need to repair the sidewalk.

They part of the right-of-way access was needed to do the work.

For we have talked quite a bit about it, but for those who are watching or who may watch this down the line, can you walk the public through the process of what the division is doing in the weeks months, maybe after that storm to then pick up and clean up the work that was necessary.

Sure.

No, I I appreciate the communication that we've been having, ongoing, you know, constituent issues, resident issues are important to us.

And you know, when there's an issue for a resident, it's an issue for me.

So uh I do appreciate that that ongoing conversation.

Um, you know, part of the challenge in the restoration um, you know, through the winter main breaks is the weather.

Um, you know, pouring concrete, uh, you know, uh laying asphalt, finishing that to be a reliable long-term product uh, you know, that can withstand road traffic, um, especially in some of the arterials and you know, more main thoroughfares in the city require conditions.

Um, and those conditions, you know, ideal conditions above 50 degrees for multiple days, um, and we're not talking about the high temperature, unfortunately, we're talking about the low temperature.

Um, you know, there are things you can do to counter some of that, but um that is the challenge.

When this is occurring at high volume as well, it's a little bit of a challenge because our crews are still dealing with the main breaks, um, and so they have to kind of table some of the restoration.

One thing that we've done is you know, obviously uh built up contractor uh capacity, and so we do have contractors that can come in.

But um at some point when the weather does co start to cooperate, uh, you know, every construction company out there, every contractor out there, everyone is waiting for concrete, everyone is waiting for asphalt, and so we do have to fall in line there as well.

Um, we see challenges in getting those materials ordered and out to the sites.

Um, but you know, we do try to make focus on that because there is an impact to motorists, to other users of the roadway and cyclists, uh, you know, pedestrians that are walking those sidewalks, like you mentioned, Maine is under there.

So that is a little bit of the the delay that has occurred as a result of this storm.

Uh, you know, is that that extreme cold weather, but also the lingering low temperatures that have been occurring.

So we can temporarily rock uh you know those excavations to to grade and then come back when the weather's cooperating to you know do a permanent restoration there, um, you know, use other kinds of techniques like that.

And I think it would be fair to say uh as we talked to with the public that there has been tracking of where the right-of-way was taken up, where the mains were accessed, and that those projects will be completed when we have the crews and the materials to get the job done.

Is that fair?

Absolutely.

That is uh, you know, always something that we're you know, we we have that it's tracked in a list, and when the weather cooperates, we get out there as we can to restore as many as we can.

Uh, and and you'll see a lot more of that work going on as the weather changes.

Uh I've taken uh terrific interest in the rate sufficiency study, and we've had some very good conversations about that in the past, and and I look forward to receiving the results of of the study uh later this month.

Um you have mentioned, I think on several occasions, that we know rates are insufficient.

I think that infers that we are looking at an increase in rates.

The question will be to what amount and and how that process works.

Um of the things that that strikes me is how we pay our bills in the city, um, how we pay our water bill uh more specifically.

And that is we pay it on a quarterly basis.

Um for those on a fixed income, I hear quite a bit.

Matt, paying that bill on a quarterly basis when it is over a hundred bucks, a hundred and twenty, a hundred and forty, whatever it might be, can be very, very difficult.

Has there been any consideration in changing how we bill?

In other words, instead of billing on a quarterly basis, bill on a monthly basis or some other parameter.

I appreciate that question.

Um I do think that that is something that you know makes sense for us.

Um there have been some conversations with the collector of revenue who of course uh you know has that uh role and responsibility to collect on uh bills that are sent out uh for revenues for the city of St.

Louis.

Um, you know, I think there's multiple platforms that are being expanded and used, such as pay at St.

Louis.

Um, you know, we can take payments more regularly for uh you know, customers, residents who prefer to do that, but I think what you're talking about is something that is an ongoing conversation about uh, you know, a change in that uh approach rather than just an option.

Um, you know, I I do think that that is something that is ongoing and and you know, we will take up uh certainly with that feedback in question.

We hear it a lot.

Um I I think it does warrant uh additional look into that.

I I hear it a lot, and and I understand that there's probably an administrative cost on billing on a monthly versus quarterly basis.

But I think for those uh of us who live in the city who might be on a on a restricted income, paying on a monthly basis versus seeing that quarterly bill might be worth considering, or at least providing the option for what that's worth.

Um one of the things uh I had a town hall in in mid-January in the fifth ward, and we had a discussion.

It wasn't on my radar until one of these meetings, but we had a discussion about the condition of the the water department.

Um one of the items that was brought up was the amount that accounts are arrears.

Uh you mentioned today the the notion of or referenced again today that the moratorium on collection was lifted this past September, September of 2025.

From a contextual standpoint, can you remind us where we stood in arrears as of the lifting of the moratorium?

Sure.

Uh I I think I don't have exact numbers uh on top of my head, but I if I recall, it was somewhere around 13 owed then and somewhere you know uh in excess of 10,000 customers.

And so you've ye you've talked about the letters that have gone out.

Uh what progress have we made since September in narrowing uh that that mark from 13 plus million dollars?

Sure.

Uh you know, I'd like to say there's been more progress than there's been, but we always knew that you know, five years of moratorium and then just announcing that it was being lifted, um, it's certainly not gonna, you know, end that uh problem from uh existing.

It was gonna take years.

Um and so as we've built uh you know that plan, um, you know, built the pathways back to solvency, you know, for for accounts and account holders that are in arrears with the generous replay payment plans, but also built in the mechanisms and capacity to do uh disconnects in the system for you know some of the more challenging balances, uh, you know, residents and customers that are not contacting us, some of the commercial accounts.

Um, you know, I do uh you know think that the numbers higher now, not lower.

Uh so it is, you know, we we anticipate that at some time it will peak and then start to come back under control.

Uh this step that I've mentioned today with the final disconnection notice letters um, you know, is just another step along that path.

Uh we're having these conversations internally as to the effectiveness of our strategies, you know, what the next steps are, but we do know that we need to continue uh utilizing that uh process and building that capacity.

We use uh some of our folks who do the water meter reading to do the shutting, and we do have a little bit of vacancy in that group, but also uh you know, we've built out uh uh process in that group, and we are now ramping into additional disconnections uh with the letters that we've sent out as well.

Um, you know, we hope again to have customers contact us first so we can work with them to get into a payment plan.

Uh but that will be ongoing as far as shutting water off uh for those residents that are behind on their bills that are not contacting us back, that have received a final disconnection notice letter.

Um and again, that number is very high.

It's not uh, you know, it's thousands of of uh account holders.

It is our number of delinquent account holders more or less than it was in September.

More.

More.

More.

Is the amount uh of is the sum amount of delinquent accounts more or less than it was in September?

It is more.

Wow.

Okay.

Um so we uh we are sending letters.

We're talking about beginning the shutoff process.

Are there any other options that have been considered for collection on these delinquent accounts?

So uh to step back just a second, we have started shutting off uh months ago and we're building more capacity to do more shutting um by hiring and evaluating other ways to do that.

Um, you know, whether that looks like establishing uh you know some contracts to assist us in doing that work or you know, working with the Department of Personnel on maybe a different classification or a new approach in uh getting that staff uh built up to do more I understand that shutting off water gets somebody's attention, or at least it would get my attention.

Yes.

Um have we considered court process, legal process?

Uh so we do uh again work through the collector of revenue here and the collector of revenue uh is responsible for placing liens on the properties that are behind.

Um and then from there, uh, you know, we we don't uh have a mechanism to to do that in the water division, but there is uh an arc that an account takes when we're not getting uh action after shutting water off, uh is what I'll say.

Um and that does run through you know uh credit agencies and collection efforts there.

Um, but that is typically after we've shut water off and still don't have contact from the account holder.

So it sounds like it uh as far as the the the more aggressive means of collection, that that would be a better question for the collector.

I think that that does have to get asked to that uh entity.

Okay.

But when we talk about process, we're we're talking about a reach out and encouragement, then shutting off water, and then referral for the placement of lien or other legal process.

Um I would say that the the lien process may have already actually occurred.

Um and so that protects uh you know, obviously the city and its interest in that debt that is owed in case there is a transfer of the property there.

I think this is kind of me banging the desk just a little bit.

But as a guy that pays the bills, this is the kind of thing that really irritates me.

Um, we have heard a tremendous amount over many months about the quality of our water.

Uh I think you are doing an admirable job setting a plan with respect to maintaining the division, maintaining the asset, getting us to the point where we're not acting emergently, but rather we're doing things on a scheduled basis.

I think all of that is one.

It's absolutely necessary.

But man oh man, I mean as a guy that pays bills, pretty frustrating to hear that I've got 10,000 fellow residents, well, some of which are businesses and and commercial units that ain't paying the bill.

I to me that's craziness.

I mean, we talk about being good stewards and we talk about uh the responsibility of serving the residents.

And I understand part of the responsibility of providing water, but it also seems like part of the responsibility is that if I provide you with a service that that I'm making sure that it's done as efficiently as possible, economically as possible, which means he pays his bill and she pays her bill and you pay my bill.

And we're not we're not given free water away.

Sure.

Uh to provide a little comment on that too, uh it's interesting we have these conversations with the consultant that's doing the rate sufficiency study.

Obviously, the the delinquent balance is uh a factor there.

Um you know, they have talked about how this is not unique to St.

Louis, this is across the country.

I think that you know, as infrastructure uh you know, investments start to ramp back up, you know, uh the grade that you see on infrastructure in the water space, you know, by the American Society of Civil Engineers across the country is is not good, um, you know, barely passing, in fact.

So uh all of these systems are dealing with this affordability challenge, um, and affordability has you know multiple definitions, but um it is not unique.

I think what's you know uh unique here is the length of the moratorium.

Sure.

And so uh, you know, we we are uh also working collaboratively with two entities, the water division and the collector of revenue, and so I think we do have to work better together uh to do this, and and we have conversations daily with the collector of revenue um, you know, on the different programs that are being considered.

Um but yeah, it is a struggle.

I will say that uh the frustration is hard.

We get calls and comments from you know uh customers, residents who are paying um, you know, who ask those same questions to us, and it is a difficult conversation.

So I think we're trying to work through that and uh you know maybe we do need to take a uh fresh look, a different set of eyes at that.

I I I think you do.

And and I think you know, we listened to Ms.

Padgett, and and I understand her point, but if one of the variables in the next rate is the amount of accounts, well, the amount of the accounts that are delinquent as well as some of those delinquent accounts.

I mean, it sounds to me like my water rate may end up going up depending upon how much delinquency is in the remainder of the community.

And I think you know, when we talk about responsibility of serving the residents, part of that responsibility of keeping rates at a reasonable amount should be getting everybody or as many people as possible to pay to pay the rate.

That's just that that's my two cents.

Before we go, you had also mentioned the utility assistance program.

Which I think as far as a matter of education goes, I think Mr.

Gould mentioned this.

Would you one more opportunity to explain anybody who might be listening today?

It's a $500 potential help program, correct?

Correct.

It's a direct bill assistance.

Would you tell folks exactly what they need to do to take advantage of that program?

Sure.

So we've got uh a page on our website.

Um, if you go to www.sclwater.com at the top of the page, you'll see uh a link, a button that says click here to learn more about our customers.

This is the program.

You know, there you'll find the eligibility criteria, um, the the link to the application portal.

Um, you know, the income eligibility criteria is expanded, as I mentioned.

And so now it's 80% of the area median income.

Um, you know, that certainly opens the program up to many delinquent account uh holders who have a balance.

Um and we're encouraging people to take advantage.

Um, you know, this program is set up for people who are struggling to pay their water bill, who have a delinquent balance to make uh you know efforts to contact us but also get back on track in a repayment plan.

It does require that uh you know applicants who do receive an award up to $500 one time, um, you know, enter into a repayment plan agreement.

Um and this is for the water balance that we're talking about.

You know, this is not eligible to be used on refuse balance or any other balance that you owe to the city of St.

Louis but the water division.

So there are funds available.

Um, you know, opening up that eligibility did see uh an influx of applications coming in.

And so, you know, that was the goal was to help people who were struggling the most to have access to this program, but then at some time, and it was you know a few months later, several months later that we opened up the eligibility uh to get even more people that assistance to get them, you know, in a repayment plan uh with a generous term of 24 months so that they can uh you know pay down their current and past balance at the end of that repayment plan.

Um, you know, they would be back to to zero balance owed with us.

And if anybody has a question about eligibility, it is as simple as going on the website and investigating uh whether they fit within the program, right?

Uh absolutely, or you know, we do have uh customer service phone number uh 31471-2255.

They can contact us and learn about the program there.

They can come to the water division's uh admin office, the pay window there at 1640 South Kings Highway Boulevard.

Uh we do have flyers there uh with the QR code uh with the eligibility criteria, they can talk to someone about the program.

Uh they can receive an application there and actually submit it uh they uh want to on paper.

Um, you know, the the goal is to expand uh you know, certainly education of this program that it is for anyone who is struggling to pay their water as a delinquent water balance on their uh account.

Um, you know, we encourage anyone to take a look at this program uh and apply.

Thank you.

Thank you.

So uh and you know, the financial assistance program is great because that's kind of where I wanted to go.

Um so the way it works, as you just described, people have to apply first and then be approved, they had to determine eligibility, then be approved, and then that money is granted to them.

But really what that means is it's granted to you, the water division to help pay some of those arrears.

Absolutely.

It's it's it's you know, it's helping residents who have fallen behind, but it's helping the water division in our financial solvency as well coming out of the pandemic, coming out of the moratorium that was in place.

Uh, you know, it it really is a fantastic program that you know can help uh this this large number of people who are behind.

And we do feel like at this point uh, you know, very many people are eligible.

We encourage them to apply.

Um, you know, and we we're trying to spread the word through any and all channels that we have, our socials, the website, the media, um, you know, certainly elected officials.

Um, you know, the mayor has talked about it in her press conferences uh from time to time.

So it is a fantastic program, and we encourage people to take a look at that.

And how much money was budgeted to fund that program?

It was a million dollars.

And how much money is left?

I do not know off the top of my head.

I want to say it's somewhere around 500,000 to 600,000 that's left.

And this was funded through the American Rescue Plan Act.

Correct.

So there's a deadline on it.

There is a deadline on it.

At the end of this year.

Yes.

Okay.

So my question is why is the program set up like that when, and I guess one more question.

How how much is delinquent?

There's over let's say 14 million dollars owed.

So 14 million dollars owed, a million dollars in financial assistance if people apply.

Is there a way that we could set this money up so that the water division could go ahead and apply the remaining balance to its needs, and then when people apply, they can be credited.

Uh because I one, I'm worried that we're not going to be able to work through that remaining money before the end uh before the deadline.

And two, I wouldn't be super happy if someone owed me money, and then someone else came along and said, well, they can pay you back, but first they have to apply, and that takes action from them, and then you can get your money.

Uh I think that the water division at the end of the day is owed this money.

I mean, $14 million is income that was uh, you know, people use that water, whether it was running and they were running the taps, but they were signed up to receive that water and the tap was open, and so they were using that water, and then it wasn't paid for.

Uh, but you combine that with all the other needs of the water division.

It strikes me that um if we've got money on the table, it would be better for you all to be able to use it before we lose it.

Absolutely.

We're we're taking a look at you know the drawdown of that fund and that program.

Um, you know, we're working with the city counselor's office, we're evaluating you know, potential changes that may be needed to the program.

Obviously, we expanded eligibility criteria once already here.

Um, you know, I think that uh as we go do shuts, um, and as you know, we we have customers who are having real challenges in paying their bills.

Um, you know, we are hanging uh not only tags notifying customers that hey, their account is eligible for shut, um, and you know, we may come back in 10 days to do that shut if they don't contact us, but we're hanging uh, you know, a trifold of that program brochure that hey, this help and assistance is available.

Um, you know, when we go out to to do the tagging or are now with our final disconnection notices, we'll we'll you know, really just go out to do shutting.

Um, you know, to to again expand ramp our our capabilities um to to focus on that part, and customers do come in to the pay window or contact us, we let them know about that program.

And so, you know, that money is available to assist customers who are behind on their bills and and putting a significant dent in that balance owed, um, and then get into that repayment plan.

Uh so you know, we are taking a look at that, of course.

It is a concern of ours as well.

But uh, you know, we think we'll be able to get that funding out, uh, you know, applied to the the account holders whose balances are delinquent and back into you know, good use for us to spend on capital renewal.

And so I I do think that you know, I I I completely understand the the concern there.

We're we're taking a look at it.

Uh that's good to hear.

I think that when you have um I I think you showed that the estimated uh deficit at this point is about negative 9.97, which we'll just call it 10.

Yeah, 10 million dollars, uh, which is up from the eight or so uh that we had heard last time we met.

Um and it it strikes me that money spent now is money saved later.

Uh, and that we we talked about how the low water rates for the the failure to raise the rate for 13 years uh was a good deal for customers, but I would argue it was not a good deal because when we are spending money in an emergency and spending more money because it's an emergency, we are not efficiently spending taxpayer money, and that is a disservice to the taxpayer as well as uh helps build that distrust in government that we are struggling with right now.

I want local government to be the government that people can trust because we are the most accessible to them.

We are the people that they can call directly, and people can come into our offices and talk to us, and we are out in their community meetings the way that other levels of government just aren't.

And so I think it's it's important that we also spend their money efficiently and effectively so that we can prove to them that we're doing everything we can.

I I do think the water division is doing a great job with the money that we uh get to it.

It feels like we're giving you table scraps, though, and uh that's on us.

Um, you know, when you say deferred maintenance, I I always think deferred maintenance is a nice term for neglect, but not your neglect.

I mean, it's similar to uh what we heard from the public today, which is yeah, you were out there immediately and you're fixing the problem.

And that's what I always hear from people.

There's a break or anything.

The water division was on site quickly.

And then you know, the repair can take some time, but you see the people out there working on the problem, and that actually builds trust because you see that they recognize the problem and are addressing it in uh a timely way.

Uh, but there is a undermining when I think city leadership neglects the water division.

And 13 years without a rate increase is the city leadership neglecting the water division, as it is currently city leadership that is failing to recognize the the deficit that we're currently uh projected for.

So is there a need to get us get get the water division more money before the end of this fiscal year?

And then the ARPA bills that are on there on the table right now, because I think we've got 5.5 million and 1.2 million, that does not equal 10.

Correct.

So, you know, built into that projection at the end of the fiscal year is some reserve uh in you know, operating costs.

Um, you know, built into that is also obligations that we have, um, some of which, you know, uh may be able to be taken a look at and cleaned up.

Um, you know, POs that were issued, work that doesn't necessarily need to happen anymore.

Um, you know, oftentimes we'll have planned work um but then decide a different route, and then that PO is is there as an obligation.

Um and then also this effort to collect on the past due balance that's owed.

I mentioned that you know that number is growing, but it's growing slower.

Um we are ramping our efforts to collect on that delinquent balance that is owed.

Uh we are not forgiving any of that debt.

Anything that we need to continue operations um, you know, will need to be supported by rates.

Um rates do need to be reviewed and set on a regular recurring basis.

As you mentioned, that 13 years, you know, it equated to less than 3% if you extrapolate that out over the time, the increases that were passed.

I don't know for sure, but inflation certainly was a huge challenge.

COVID was a huge challenge, supply chain, chemical costs, um, labor costs.

And so, you know, did that rate increase uh effectively get us to a place where we could build the reserve back?

It did not.

Um hindsight shows us that, right?

And so looking ahead, if you're not able to counteract the effects of inflationary pressures, rising expenses in operation, um, you know, costs that we're seeing with contractors because of vacancy concerns and issues and staffing and labor markets, um, then you're certainly putting a stress and a strain on the necessary level of capital renewal that we need to be doing.

And so I think that's the the thing that we need to think about is that uh you know, if a rate increases recommended and passed, that that money will be necessary, but more will be necessary after it, after it and after it in an ongoing fashion, but more regular, more transparent, more informed.

Um, the master plan, you know, development of projects that have hard or high return on investment.

Um so I do understand the concern about that delinquent balance that's owed, it is not going to be forgiven.

We are going to continue working that problem down as well as every other problem that you know we certainly perceive and have high on our list.

Um, but the the rates do need to support the operation, the rates do need to support the the expenses in capital renewal ongoing.

I don't think that any rate increase uh you know should be looked at in a vacuum aside from that money that's owed, um, because we are going after that as well.

You know, I we have a lot of things that are happening in parallel, a lot of parallel processes, improvements and staffing, in you know, our data-driven approach.

Um, you know, that again I'm very excited by the work in the master plan to identify these these low-hanging fruit projects.

Um, and also the the positives in that to say that 90% of the pipe segments, you know, may not be a risk at all right now.

So all of these things happening, all of the dollars that come in from the various forms that they're coming in, we're evaluating that.

Um, I do think that your concern about the end of this fiscal year is certainly a concern of mine.

That's what I mentioned that you know, our fiscal team is looking at this regularly.

Um, and and we intend on coming to this forum and and letting the elected officials know, certainly working with the administration as well.

We're in close communication with them about our financial situation.

Uh the moment something changes, um, positive or negative, um, you know, we're trying to spread that word.

And I appreciate that.

I think the communication has been great.

I think it's it's been you know great and improving at the same time.

And so that's something that we want to continue to see uh because that communication between you know the water division and the mayor's office, the water division, the board of aldermen, um, at the end of the day, it's it's those two entities that are going to be able to get more money for the water division.

Um, the the thing that's been challenging to get people to understand is that it is not just insufficient rates, it's insufficient rates with rising costs, it's insufficient rates with uh delinquent accounts, it's insufficient rates with aging infrastructure.

And so when you have this multiple problems, the as you've described it, a diverse funding stack is necessary, both money now in the form of a capital infusion into the department, as well as money later, which would be the r the rates.

Because I mean if you're if your spouse comes home and says, Hey, I got a raise, you're like, that's great, but there's a hole in the roof right now that we need to fix, and the raise is going to make us enough money over the next 10 years to flex six fix that hole, but we need to fix it right now because it's um you know what we're water's coming in.

Um so I I I've been in this situation in my own home.

Uh so I I know that what it takes to uh you know, at the time you you take uh you take out a loan, but even we've heard can't take out loans because the rates aren't high enough.

So that's why I think we have this opportunity right now to get the water vision on uh financially stable footing uh to be able to address these problems not only as they come up but also proactively address it because I think the proactive um maintenance is what our our residents would like to see.

I'd much rather see the water division outworking on something before the pipe breaks than have you know a sheet of vice encase my car.

I think that's uh it's not on you when when you've had insufficient resources, but it is going to be on us to to make sure you have the resources going forward to be able to be that department that uh prevents problems before they they escalate.

So uh I don't have any more questions.

I really appreciate the time you've taken.

I really also want to shout out I love the pictures that you've included of the staff because those are the people out there doing the work.

Uh whenever there's a break in my award, I always try to come by and talk to the people doing the work because uh that is the hard job when it's sub-zero temperatures outside and people are responding uh and working in those conditions just so that you can get your water back on.

I mean, that's public service, and that's what we really appreciate uh our workers for doing because they know that they would do the same if it was on their block.

They're doing it for our residents, and we just you know, I I I know I appreciate them so much.

So uh please pass along our appreciation to your your staff, and um is there anything else that you'd like to share before we we close today?

Uh no, uh you know, thank you very much for having me here.

Uh I think it's really important that we have regular communication.

I appreciate all the questions.

I think you know, I learned something when I come here about you know what constituents are bringing to you all.

So it's very important to me that we have these conversations openly, and then of course the transparency is just paramount to me.

Uh, you know, we're all in this together.

We have to to convey this message to you all to the community.

So uh if you do have community meetings, neighborhood meetings.

Uh, I know Spencer said, you know, call us, uh, but we have a PIO as well.

Uh, you know, we love to come out and and talk to residents about what it is that we're doing, uh, you know, get that proactive communication out, answer questions, talk one on one.

It's it's uh a great thing for us.

Thank you.

Thank you.

And with that, uh Madam Quirk, do we have any written testimony today?

No, we have none.

Okay.

And does any members uh have any announcements?

Seeing none, uh, I'd like to excuse the alder woman from the 10th and the alder woman from the 13th for necessary absence.

And with that, I'll take a motion to adjourn.

So moved.

Second.

Previous roll.

Moved by the other one from the first, seconded by the alderman from the fifth, a call for previous roll from the alder woman from the first.

Hearing no objection, we are adjourned.