Oklahoma City Water Utilities Trust – 3/26/2024

meeting they've been in your packet are there any comments regarding the minutes see none is there a motion for approval please vote and it passes unanimously next up is concurrence or the consent docket which has number of pricing agreements um a number of uh amendments and change orders primarily um on it today um are there any items on the consent docket that the trustees would like to pull for discussion or individual consideration seeing none is there a motion to approve the consent docket and it passes unanimously item four is the concurrent stocket there was one item on the concurrent stocket with a concurrence item with the City of Oklahoma City item a that includes no aquate funds the next 1 2 3 4 5 6 7 eight items are all concurrence items with the McGee Creek Authority that met here a couple of weeks ago are there any items on the concurrence docket that the trustees would like to pull for discussion or individual consideration I'm seeing none so there's a motion to approve the consent docket motion second please vote and it passes unanimously we have one emergency contract it's uh ratifying the actions of the general manager declaring emergency waving competitive bidding and issuing emergency purchase order and emergency purchase order authorizing payments for services and equipment until the emergency is resolved estimated $75,000 uh that's incredibly vague uh you want to elaborate on that one Mr Bronies yes sir Mr chairman there was a sewer line overflow that was caused by a uh the failure of a private lift station caused a backup in our system uh the developer did not have the we thought to respond immediately so we responded to mitigate accordingly uh We've documented all of our costs and we'll be passing those on to the uh developer for rein ement all right Item B is an emergency sanary sewer repair uh down in the on the area of south Portland Avenue we could have a motion to approve both of the emergencies if the trustees so desire we have a motion second please vote and it passes unanimously moving on items for individual consideration item a is ratifying and approve and approving addendum number one in awarding contract to Ellsworth instruction for the Lake Road Improvement re Rehabilitation projects uh at Lake at TOA Mr her got a slide oh here we go okay so um we have about four mon miles of road at Lake OFA that has been uh in pretty bad condition the South part of it here in yellow uh was beaten up pretty good by heavy heavy construction traffic due to the rehabilitation of the uh Dam right here the uh section in red um was full of large cracks and due to heavy movement of the soil alongside the mountain side right here and so we had two uh projects to put together in order to rebuild these rows right here so what we did in order to U further encourage competition and construction uh bidding is to combine these two projects into one project where we would bid the south portion as a base bid and the north portion as an ad alternate there for that if we do get a bid in and uh we could at least build the southern portion which was really beaten up and allow people access to uh uh the dam area right here and if the prices came in very well then we could also add in the northern part the uh good news is is that both um projects came within budget and we were able to um award both of these projects at the same time to one contractor who is Ellsworth construction for a combined cost of about 7 A5 million and we anticipate this project to be done by the end of this year if you haven't been down there recently that road is really bad yes sir any questions for Mr her seeing none is there a motion to approve item 6A and it passes unanimously item 6B is an amendment with vanas trenchless services for project w8745 188,000 this project right here deals with boring or tunneling to two tunnels underneath the Canadian river for the new aoka Pipeline and to uh reinforce the existing pipeline which is an aerial Crossing that you see here this was in danger of being Swept Away during heavy flooding in 2015 so we decided to go ahead and tunnel underneath the river in addition to the new one and connect it later on to the existing pipeline this amendment right here um is kind of like putting uh getting all of the field conditions together for additional pipe to uh come up with the perfect place to find uh a connection Point uh for the new 60-inch pipeline to the existing pipeline so that this centerpiece can be abandon in place and that's pretty much it in a nutshell all right any questions with Mr hair on the river crossing Amendment see none is there a motion for approval please vote and it passes unanimous now I think it's appropriate to go back to item one since I gloss over that so so so quickly this morning I don't believe there's ever been an item under call for order before quite frankly so I know I should have caught it but I didn't so so Mr Mr w guard can we uh Step Up Front Mickey would you Pro please read the resolution whereas Brent weart is retiring on March 28th 2024 after 30 years of exemplary service and dedication to the Citizens Council Members trustees and Senior leadership of the City of Oklahoma City and whereas Mr weart began his career with the city on December 6th 1993 as a business business manager in utilities and since 2001 Mr weart has served as the assistant director of utilities and intermittently served as interim director of utilities and general manager of the Oklahoma City water utilities Trust and whereas Mr weart has contributed through his astute insights attention to detail consideration of the facts in his decision- making and consistent demonstration of continual regard for high standards and whereas Mr weard coordinated a team and modernized solid waste utility operations employee training collection practices equipment selection and financial status to raise customer satisfaction from the lowest rated service in 1997 to the highest rated service in 2003 and raised the Deb debt Bond rating from unrated to AAA rated and whereas Mr weart spearheaded efforts to convert solid waste collection vehicles from diesel to compress natural gas and he negotiated the public and private contracts to obtain state tax credits that funded the construction of a public fueling infrastructure reducing ait's fuel costs by 600,000 per year therefore aquit received awards for environmental responsibility and Innovation and whereas Mr weart worked to protect water as a valuable resource he presided over the creation of a comprehensive water cons conservation plan led the team that negotiated a 50-year contract with the federal government to operate maintain repair and improve the water and wastewater systems at Tinker Air Force Base and drove the separation of leadership for the water and wastewater quality divisions and whereas Mr winguard administered the development of the utilities Regulatory Compliance program with the divisional managers resulting in the development of a Regulatory Compliance team that ensures utilities meets all regulations and continues to develop strategies to meet future regul regulations well in advance of enactment and whereas Mr weart requested changes to the city Charter then improved procurement practices and enabled City departments to purchase on aquit contracts the use of multi-year bulk pricing contracts and the modernization of bid and contract methods for professional service solicitation including Milestone deliverables and payment procedures substantially improving vendor relations and whereas due in large part to Mr wiard's Innovative efforts utilities has a long history of prudent financial management relying on a blend of Dependable reoccurring annual net revenues and bond financing to fund the construction of critical Capital Improvements and whereas Mr reinart developed financial plan strategies and objectives that routinely generate sufficient net R revenues to equal or exceed the replacement of replacement value of annual asset depreciation expenses Supply coverage for twice the amount of Debt Service Reserve funds to meet policy levels and Achieve 90 days of working capital provide long-term Financial Resources sufficient to meet all capital needs progressively raise standard and pors and moodies bond ratings from double A minus to double A Plus in 1999 and Triple A in 2008 and generate sufficient revenues from fixed charges to meet annual debt service requirements since 2008 whereas Mr weart propelled the modernization of computer Technologies system support Staffing and project management methodologies including the modernization of billing systems and the initial vision for the current Enterprise scada solution and whereas Mr weart developed a wholesale water service plan and pricing strategies to help metro area communities obtain economical yearr round utility services and address their Federal arsenic regulation challenges increasing customer service customer satisfaction with the city and increasing water sales revenues by 10% annually and whereas Mr weard oversaw the formation of a customer assistance program that makes it more economical for lower income customers to set up services by revising customer deposit requirements and enabling the rebate of two months of solid waste fee deposits to customers and whereas Mr wiard's vision for employee training programs shaped the employee safety program succession planning and the utilities University he devoted countless hours to building and teaching the utilities University course big picture with the hope of inspiring the next generation of utility leaders and utilities University program has a profound impact on employees lives Prov by providing personal growth and promotional opportunities now therefore be it resolved by the trustees of the Oklahoma City water utilities trust that they do hereby gratefully recognize the comp contributions of Brett Wine Guard and thank him for 30 years of service to the City of Oklahoma City and the Oklahoma City water utilities trust and congratulate him on his retirement all right thank you do the trustees have any comments yes V yes and it passes unanimously do the trustees have any comments they'd like to Sharee all right I don't know how many years have we been sitting next to each other four or five now um I want to thank you for putting up with a lot of dumb questions I want to thank you for taking my phone calls um I want you to tell your wife thank you too um 30 years would May of 93 you've been here actually December 693 December 6th of 93 outstanding I think the the third whereas is what um really reminds me of you and it says whereas Mr weart has contributed through his astute insights attention to detail consideration of the facts and his decision decision-making and consistent demonstration of continual regard for high standards that is you I I will miss your Kansas City chief attire uh but I hope you come back and visit us soon and uh once again congratulations on your retirement yeah I just I'm gonna Echo everything he said so is that good I guess uh anyway I just wanted to say thank you for the service to the city uh for the citizens of our city and do appreciate greatly appreciate all the Insight that you've had and that you've shared with the rest of us so thank you very much and and all the utility staff but his leadership and his ability to zero in on problems and solutions it just was made it so much easier to be the legal council to this trust and to this body and his dedication uh to the Citi citizens and and to this entity are just uh Landmark uh and I really appreciate every day we spent together um Brett thank you for your service to the city thank you for your resilience thank you for your Innovative approaches you know a utility like this doesn't reach the kind of um Nationwide recognition and a claim that we have as well as has the opportunity to serve our citizens with the highest rated service in the city without some um uniquely uh innovative ways of approaching that and I really appreciate that um I told your wife I think of you as the new guy because you came here 14 years after I started with the city but now you've you've earned your retirement thank you so much for the time you spent here it's just my pleasure to be able to congratulate you on your retirement today being the newest member of the trust I haven't had the length of time to get to know you but the time I've spent uh with you here on the trust has absolutely been a pleasure and I just wish you the best in your retirement thank you all right I have some comments but I will save my comment for in that later this afternoon like to share well um I want want to thank you very much for giving me the opportunity to be at the City of Oklahoma City all right and every single person I've ever worked with here has been fabulous and I think this is the best job in the entire world the best city in the entire world I wouldn't have wanted anything different and everything that you guys have read on here was done as a team effort with every single person that worked here and whether in utilities or other departments the collaboration to make things happen and achieve all the things that have been accomplished I know that all the people that we've uh mentored up over the years we're going to do way even better than we did before I really have faith in all of that they're all wonderful thank you very much thank you sir all right let's give him a round of applause [Applause] next on the agenda is item C which is the amended private development Water and Wastewater design requirements manual Mr chairman we brought this item to the trust several months back um and have had further conversation with the contractors Association so we made a couple more modifications as you recall we we updated the manual from the 2006 version um and so we we amended the requirement for manhole lids and for sewer service connections and now we're ready to present for your consideration and upon approval we will um present to city council at the next meeting uh for their consideration as well uh so so tell me a little bit about the uh public uh inclusion involvement uh participation by the public contractors engineers and such we had several meetings developers with the developers the engineers and the contractors to ask them to give us their comments related to the improvements and and basically it was a consolidation of changes that have been made over over the years since 2006 in addition to that we included the Wastewater design standards which it originally only had the water design standards so we updated the manual to include both and we had quite a few discussions with the developers contractors and Engineers uh and agreed upon these changes as uh the direction that we should head as a community uh for development standards so this this process has been going on for probably about 18 months we also included uh members of this trust in those in those uh conversations as well uh if I remember correctly council member Stone Cipher and stone were involved in those conversations with the developers as well so uh we are quite sure that we have an up-to-date design manual that everybody has agreed is is a good direction and would like your consideration accordingly all right any comments or questions regarding the design manual see none is there a motion for approval we had problems with this earlier there we go it's up and it passes unanimously next up is item D has to do with the refunding of certain outstanding obligations with the Oklahoma City water utilities trust Dennis W's here this morning this afternoon afterno good afternoon I'm Dennis Wy with pfm we're the financial adviser to aquit uh first I just want to say Brett I've enjoyed working with you for 15 or more years and I wish you the very very best in retirement enjoy uh here to talk a moment about an upcoming Bond sale uh this Bond sale will occur in miday and be uh a refunding of commercial paper about $71 million uh a re providing aquit funds back from a reimbursement resolution about $42 million and then to borrow some new money in the amount of $157 million that comes to a total of $27 million and the bonds will be sold with a a tener they will be advertised over time but the longest bonds will be 40 years in length and the reason for that is much of this money will go toward the aoka pipeline and other longlived assets so we can match our liabilities to our assets and issue for a longer period than is we have historically we solicited underwriting firms on March 20th to select a team to sell these bonds responses are due back uh tomorrow this the team will be selected in early April and during the month of April we'll be doing other tasks including completing the preliminary official statement we'll be doing rating meetings and having uh diligent sessions with the underwriting team uh we will return to the Trust on April 23rd for approval of the documents for the bond sale and that will be a double docket with the city council meeting uh on the morning of April 23rd uh once again pricing will be on May 15th with the closing on May 29th be glad to answer any questions so the bond market these days are higher but stable I would say stable uh we had uh two transactions this morning for the City of Oklahoma City On The Go Side uh we sold about 110 million in tax exempt Geo bonds had seven biders this morning everybody was the bids are all very close together we then sold some taxable bonds we had four bids and I think the difference between first and second was 1,000 of a basis point so we were pretty much on the market um what was the tiic on the uh on the on the tax exemp the tax exempt three high4 there you go there we go all right 3449 something yeah that's close enough excellent okay any question questions for Dennis regarding the the potential refunding Mr chairman I'd like to make a couple of comments first of all this is this is more of a bridge um we're still negotiating with the banks for the commercial paper as you all know it our current contract with State Street expires in June so we're still working on that project and uh Dennis is actively involved in that with our staff and attorneys um and then secondly we're still working on a bank note as well we're hoping the uh State Legislature will help us out with the laws that exempt many of the large Banks from doing business Oklahoma City so we're we're still actively working on those two but this is a bridge to kind of get us a little bit of relief so that we can continue to award uh some of our capital projects that are stying right now because they uh we have a couple of really big projects going on that are Tak up uh a lot of the credit limit in our commercial paper so that's what we're doing here to uh to kind of keep us going and staying on schedule all right uh is there a motion for approval and it passes unanimously thank you Dennis item e is is a resolution adopting the McGee Creek Authority fiscal year 25 budget Capital Improvement projects and pay P pay plan uh any questions regarding that the McGee Creek met two weeks ago and adopted uh these items see none is there a motion for approval and it passes unanimously items from trustees this afternoon all right general manager report Mr Brownie thank you m Mr chairman um first of all I want to talk about Brett for just a second then I'm going to have some more comments across the street but you know there were a lot of wear asses in that resolution so he's been busy uh and and and I'm going to tell you I've never seen anyone more committed or passionate or deliberate in the service to the public than than Brett I mean he he has always jumped in there no matter what and and you've seen in the in the resolution that he's he's accomplished a lot during his tenure with with the utilities and and I want to personally thank you for that Brett and and we're going to miss you and I'm going to miss you so thank you very much secondly uh we have the performa uh spending and and revenues are are generally where they're expected uh lake levels are doing great right now Hefner's a half a foot above full pool Drapers only 2 and A2 ft below full pool Canton is above full pool as a matter of fact the core has released more water they're trying to get some more free board for the May and June rains aoka is half a foot below full and McGee Creek is 3.2 feet above full pool they got quite a bit of rain the last few days so we're doing great with our Lakes right now so be happy to answer any questions that you may all have other than that that's all I have all right any questions for Mr Brownie seeing none uh I'm not aware of any citizens that have signed up to be heard this afternoon therefore we are adjourned for

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