[00:00:05]
GO AHEAD AND CALL THIS MEETING TO ORDER.
UH, CAN I GET A ROLL CALL PLEASE? MAYOR? PARDON? HERE.
UH, AT THIS TIME, DO I HAVE A MOTION TO ALLOW COUNCILOR STOKES TO PARTICIPATE REMOTELY? I MA'AM.
MOTION'S BEEN MADE BY COUNCILLOR DAY AND SECONDED BY VICE MAYOR JOINER.
IS THERE ANY DISCUSSION? ALL RIGHT.
HEARING NONE, ROLL CALL PLEASE.
[CLOSED MEETING]
DO I HAVE A MOTION TO GO INTO CLOSE MEETING UNDER VIRGINIA CODE SECTION 2.2 DASH 3 7 11 A ONE TO DISCUSS AND CONSIDER THE ASSIGNMENT AND PERFORMANCE OF SPECIFIC APPOINTEES AND EMPLOYEES OF CITY COUNCIL, CITY COUNCIL APPOINTMENT RECOMMENDATION, AND THE VIRGINIA CODE SECTION 2.2 DASH 3 7 11 A EIGHT.TO CONSULT WITH, UH, LEGAL COUNSEL, UH, REGARDING SPECIFIC LEGAL MATTERS.
MOTIONS BEEN MADE BY COUNCILLOR DAY AND SECONDED BY COUNCILLOR ELLIS.
IS THERE ANY DISCUSSION SEEING NO LIGHTS ROLL CALL PLEASE.
DO I HAVE A MOTION TO CLOSE MEETING? I'LL SECOND IT.
UH, MR. ATTORNEY, UH, DO YOU HAVE THE LANGUAGE FOR THE CERTIFICATION? UH, APOLOGIZE.
I DO NOT, BUT I CAN PULL IT UP VERY QUICKLY.
UM, JUST A MOMENT IN RIGHT NOW.
SO, UH, I'LL READ OUT THE CERTIFICATION.
THE CERTIFICATION IS THAT TO THE BEST OF EACH MEMBER'S, KNOWLEDGE ONLY PUBLIC BUSINESS MATTERS, LAWFULLY EXEMPTED FROM OPEN MEETING REQUIREMENTS UNDER THIS CHAPTER AND ONLY SUCH PUBLIC BUSINESS MATTERS AS WERE IDENTIFIED IN THE MOTION BY WHICH THE CLOSED MEETING WAS CONVENED, WERE HEARD, DISCUSSED, OR CONSIDERED BY THE PUBLIC BODY.
[SPECIAL MEETING]
TO THANK EVERYBODY FOR COMING OUT TO TONIGHT'S CITY COUNCIL MEETING TO, UH, DISCUSS, UH, THE STRATEGIC AND FUTURE DIRECTION FOR THE HOPEWELL WASTEWATER PLANT.AND I WILL TURN IT OVER TO MR. BOB AND MS. NESS.
UM, THERE'S JUST A COUPLE OF SLIDES AT THE BEGINNING THAT WEREN'T THERE.
A COUPLE OF UPDATES FROM WHAT WAS MAILED.
TODAY'S AGENDA, WE'RE GONNA GO THROUGH FOUR ITEMS AND MAKE A RECOMMENDATION.
UM, ONE, A LITTLE BIT OF CONTEXT OF THE WASTEWATER TREATMENT FACILITY, UH, CURRENT STATE.
AND THEN WE'RE GONNA GO THROUGH THE BURY CONDITION ASSESSMENT, THEN THE HAZEN AND SAWYER STAFFING EVALUATION, AND THEN TALK A BIT.
YOU HAVE A DECISION POINT YOU'VE GOTTA GO THROUGH AND TAKE A LOOK AT.
SO WE'VE GONE THROUGH AND PUT PROS AND CONS INTO THREE DIFFERENT OPTIONS FOR YOU.
UM, WHICH IS ESSENTIALLY, UM, YOU KNOW, HIRE GOOD GM, KEEP IT, KEEP IT TO YOURSELF, UM, YOU KNOW, SOME VERSION OF OUTSOURCING, JUST THE MANAGEMENT OPERATION, BUT KEEP IT WITHIN THE HOPEWELL FOLD.
AND THEN THIS THIRD OPTION, WHICH IS SELL IT AND OR MAKE IT A PUBLIC PRIVATE PARTNERSHIP.
[00:05:01]
SO AT THE END, WE WILL GO THROUGH FROM THE STUDIES WHAT WE BELIEVE THE PROS AND CONS ARE FROM EACH OF THOSE THREE OPTIONS.AND WITH THAT, I'M GONNA HAND IT OVER TO BOB, WHO'S GONNA WANNA SPEAK A LITTLE BIT ABOUT THE ECONOMIC IMPACT IMPORTANCE OF THE WASTEWATER TREATMENT FACILITY.
GOOD AFTERNOON, MR. MAYOR AND MEMBERS OF THE CITY COUNCIL.
IT'S, UH, GOOD TO BE BACK AGAIN.
UH, I WANNA SPEAK A LITTLE BIT ABOUT, JUST GIVE A SUMMARY OF WHAT YOU ALL KNOW AND WHAT WE KNOW BEFORE WE TURN IT OVER BACK TO, TO HEATHER TO GET MORE INVOLVED, MORE SPECIFIC ABOUT THE DETAILS.
UM, LEMME JUST MAKE ONE EDITORIAL COMMENT.
THERE ARE MUNICIPALITIES ALL ACROSS THIS COUNTRY WHO WOULD FALL OVER BACKWARDS TO HAVE THE, THE MANUFACTURING COMMUNITY THAT YOU HAVE HERE IN THE CITY OF HOPEWELL, LARGE COMMUNITIES AND SMALL COMMUNITIES.
AND THOSE COMMUNITIES IN THIS WOULD DO EVERYTHING IN THEIR POWER TO MAKE SURE THAT THEY HAVE A VERY STRONG STRATEGIC PARTNERSHIP WITH THOSE INDUSTRIES.
AND SO, I'D JUST LIKE TO AS THAT EDITORIAL, THAT'S A FACT BASED ON MY YEARS OF EXPERIENCE OF WORKING ON ECONOMIC DEVELOPMENT OPPORTUNITIES AND MUNICIPALITIES ALL ACROSS THE COUNTRY TO HOPE WELL, WATER RENEWAL TREATMENT FACILITY CURRENTLY TREATS, AS YOU ALL KNOW, 27 MILLION GALLONS OF WASTEWATER A DAY FROM THE CITY OF HOPEWELL FOR GREG ADAMS, WHICH HAS CHANGED DAN, WHICH HAS BEEN CHANGED, UH, THE FEDERAL CORRECTIONS COMPLEX AND PORTIONS OF PRINCE GEORGE'S COUNTY, AND THREE MAJOR MANUFACTURING INDUSTRIES, ADVANCED SIXTH, HOPEWELL WESTROCK AND ASHLAND, AND A RECENT ENGINEERING CONSULTANT REPORT ESTIMATED THAT TO REMAIN OPERATIONAL AND TO REMAIN IN COMPLIANCE WITH APPLICABLE WITH APPLICABLE SAFETY AND ENVIRONMENTAL REGULATIONS, THE HOPEWELL WATER TREATMENT, HOPEWELL WATER TREATMENT FACILITY WILL REQUIRE IN THIS DOCUMENT $24 MILLION OF IMPROVEMENTS.
BUT WE BELIEVE IT WILL REQUIRE SUBSTANTIALLY MORE THAN THOSE 20, THAN THE $24 MILLION.
I MIGHT ALSO ADD THAT I THINK IT'S IMPORTANT TO REEMPHASIZE THE FACT THAT THESE ARE FORTUNE 500 MORE OR LESS COMPANIES IN, IN OUR CITY.
AND FOR A CITY OF THIS SIZE, I'M NOT AWARE OF MANY SMALL LOCALITIES THAT HAVE FORTUNE 200, FORTUNE 300, OR EVEN FORTUNE 500 COMPANIES, AND IN FACT, THAT HAVE INTERNATIONAL COMPANIES, UH, IN, IN THE CITY.
SO YOU'RE VERY FORTUNATE AND I THINK VERY BLESSED TO HAVE THOSE FACILITIES.
THE CITY OF, AS YOU ALL KNOW, THE CITY OF HOPEWELL IS ECONOMICALLY CHALLENGED, IS AN, IS AN ECONOMICALLY CHALLENGED COMMUNITY.
AND THAT AS SUCH, YOU HEAVILY, THE CITY IS HEAVILY DEPENDENT ON THE MANUFACTURING SECTOR.
AND I BELIEVE YOU ALL SEE THIS PLAY ITSELF OUT WHEN YOU PREPARE THE ANNUAL BUDGET FOR THE CITY EVERY, EVERY YEAR BETWEEN MARCH AND APRIL, 2020.
AS A RESULT OF LOCKDOWNS IMPOSED IN A RECENT, IN RESPONSE TO COVID-19 PANDEMIC, THE CITY OF HOPEWELL LOST 901 JOBS, OR APPROXIMATELY ONE OUT OF EVERY NINE JOBS IN THE CITY.
TOTAL EMPLOYMENT HAS YET TO RECOVER TO THE POST PANDEMIC LEVEL.
AS OF SEPTEMBER, 2023, TOTAL EMPLOYMENT IN THE CITY OF HOPEWELL STOOD AT 7,420 JOBS, WHICH REPRESENTS AN OVERALL DECREASE IN EMPLOYMENT OF 5.9% OVER THE FIVE YEAR PERIOD.
FROM SEPTEMBER, 2018 TO SEPTEMBER, 2023.
OVER THE SAME PERIOD, TOTAL STATEWIDE EMPLOYMENT IN VIRGINIA INCREASED 4.2%.
SO OUR EMPLOYMENT DECREASE WHILE IT'S COMMONWEALTH OF VIRGINIA'S EMPLOYMENT, INCREASE MANUFACTURING IN THE CITY OF HOPEWELL.
ECONOMIC, UH, MANUFACTURING IS THE CITY OF HOPEWELL'S ECONOMIC MAINSTAY.
THE MANUFACTURING SECTOR HAS DEMONSTRA DEMONSTRABLY SIGNIFICANT STABILIZING
[00:10:01]
EFFECT ON THE CITY OF HOPEWELL'S ECONOMY.I MIGHT ALSO ADD THAT, UH, NO CAPITAL MAINTENANCE PLAN CURRENTLY IS IN PLACE.
WE'VE HAD EQUIPMENT FAILURES, AS YOU ALL KNOW, FOR THE 19, FOR THE 26TH BUDGET, A FIVE YEAR CAPITAL DIMENSIONS IMPROVEMENT PLAN WAS DEVELOPED WITH THE TECHNICAL ADVISORY COMMISSION AND THE CITY AND ADOPTED BY THE COMMISSION INDUSTRY PARTNERS EXPRESSED CONCERNS OVER LACK OF FINANCIAL TRANSPARENCY.
THIS IS MY SIDE, HEATHER, WE'LL GET INTO THAT, UH, THAT SIDE OF, OF THE REPORT.
BUT I DO WANT TO, UH, GIVE, MAKE SOME COMMENT WITH REGARD TO THE IMPORTANCE OF, OF HOPEWELL TO THE, TO THE COMMONWEALTH OF VIRGINIA.
AND AS YOU WORK WITH YOUR LOBBY, YOUR LOBBYISTS OR YOUR STATE REPRESENTATIVES, I BELIEVE IT'S IMPORTANT THAT THE MESSAGE, UH, IS CONVEYED WITH RESPECT TO THE MANUFACTURER'S FINANCIAL, UH, FISCAL IMPACT ON THE CITY.
AND SEVERAL YEARS AGO, YOU ALL RECEIVED THE REPORT FROM A GROUP NAMED MAGNUM.
AND IF YOU'VE NOT HAD THAT REPORT, I WOULD RECOMMEND THAT THE CITY MANAGER PROVIDE YOU ALL WITH A COPY OF THE REPORT AND THAT THAT REPORT BE PROVIDED AS PART OF YOUR LEGISLATIVE PACKAGE WHEN YOU ARE LOBBYING FOR ADDITIONAL, UH, FUNDS FROM THE STATE OR FROM ANY JURISDICTION.
BECAUSE THE REPORT SPECIFICALLY SPEAKS TO THE IMPORTANCE OF THESE PLANTS, NOT JUST TO THE CITY, BUT THE IMPORTANCE OF THESE PLANTS TO THE COMMONWEALTH OF VIRGINIA.
AND IT'S REALLY CRITICALLY IMPORTANT IN MY JUDGMENT, THAT YOUR LOBBYISTS, THAT THEIR STATE ARE REPRESENTATIVE, THAT THE CONVERSATION THAT YOU HAVE WITH THIS COMMONWEALTH WHEN YOU'RE SEEKING FUNDING TO ADVANCE AND KEEP THESE FACILITIES IN OPERATIONS, THAT YOU SPEAK AS PART OF YOUR MESSAGE TO THE IMPORTANCE OF THESE FACILITIES TO THE ECONOMIC VIABILITY, NOT JUST OF THE CITY, BUT TO THE COMMONWEALTH OF VIRGINIA.
AND AS YOU ALL KNOW, THE COMMONWEALTH CONTINUOUSLY OR CONTINUOUSLY OUT THERE SEEKING NEW OPPORTUNITIES AND BUSINESS RETENTION, UH, FOR THE COMMONWEALTH.
AND YOU ALL SHOULD BE PART OF THAT CONVERSATION.
I WOULD SAY THAT GIVEN THE FACT THAT YOU HAVE THESE MAJOR MANUFACTURERS IN THE CITY, YOU HAVE TO PLAY LARGE, NOT SMALL.
IT HAS NOTHING TO DO WITH WHETHER OR NOT YOUR POPULATION IS SIGNIFICANTLY LESS THAN SOME OF THE LARGER COUNTIES IN VIRGINIA.
YOU AS REPRESENTATIVE, I MEAN AS ELECTED OFFICIALS AND YOUR STAFF, YOUR ECONOMIC DEVELOPMENT STAFF, CITY MANAGER, ET CETERA.
GIVEN THE IMPORTANCE OF THESE FACILITIES TO THE ECONOMIC GROWTH AND DEVELOPMENT OF THE CITY, YOU HAVE TO PLAY LARGE, NOT SMALL.
I'M NOT LECTURING BY THE WAY, MR. MAYOR MILLER, THE CITY COUNCIL.
WITH ALL THAT IN MIND, WHAT WE'RE GONNA DO NOW IS WE'RE GONNA DELVE A LITTLE BIT INTO THE DETAILS AND GET TO A DECISION POINT FOR DISCUSSION.
UM, I WILL TELL YOU THE, THOSE THREE SLIDES THAT BOB DID, THEY WERE TAKEN DIRECTLY FROM THE MAGNUM REPORT JUST TO CITE THAT.
UM, ALRIGHT, SO FROM OUR BASELINE, OUR INITIAL CONDITIONS, SO WHEN WE LEFT SIX MONTHS AGO, THERE WAS NO CAPITAL MAINTENANCE IMPROVEMENT PLAN.
I AM HAPPY TO REPORT THAT AS PART OF THE FISCAL YEAR 26 BUDGET, A FIVE YEAR PLAN WAS DEVELOPED, UM, WITH THE TAC AND THE CITY AND ADOPTED BY THE COMMISSION ON THE 21ST OF APRIL.
AND, UM, I BELIEVE THE COUNCIL APPROVED IT THE FOLLOWING DAY ON THE 22ND.
UM, THERE HAS, WHEN WE FIRST CAME IN, THE INDUSTRY PARTNERS OF WHICH SOME ARE HERE TODAY, UM, EXPRESSED MAJOR CONCERN ABOUT THE LACK OF FISCAL TRANSPARENCY, UM, ESPECIALLY WITH THE LEAD CHAIN REVENUE USE AND THE OTHER, UH, REVENUE, UM,
[00:15:01]
UM, PIECES THAT FEED INTO, UM, THE WASTEWATER RETREAT, UM, WASTEWATER TREATMENT FACILITY.UH, THERE WAS A TON OF DEFERRED MAINTENANCE, RISING SAFETY AND REGULATORY RISKS.
EVERYONE KNOWS AND IS AWARE OF WHAT WE'VE BEEN THROUGH IN THE LAST COUPLE OF YEARS.
THERE WAS A LACK OF A TRUE UP PROCESS, UH, WITH INDUSTRY PARTNERS LEADING TO A DEFICIT.
AND, UH, THE ALVAR MARCEL REPORT THAT WE CAME INTO THAT WAS HERE AT BEFORE US HIGHLIGHTED LEGAL, FINANCIAL AND GOVERNANCE LIABILITIES.
HERE'S WHAT'S HAPPENED SINCE THEN, RIGHT FROM THEN TO NOW, UM, AGAIN, THE CAPITAL IMPROVEMENT PLAN IS NOW SORT OF APPROVED FOR THE NEXT FIVE YEARS.
THE TRUEUP PROCESS WAS IMPLEMENTED AND APPROVED.
UH, WE WENT THROUGH THAT ABOUT A YEAR AGO TODAY, UM, AND SHARED, UH, WHAT THE OUTCOME WAS WITH THAT.
THE RECONCILIATIONS WERE COMPLETED ALL THE WAY THROUGH 2023, DESPITE THE FACT THAT THE AUDITS HADN'T BEEN FINALIZED.
UM, I BELIEVE ACTUALLY NOW THEY'RE IN PROGRESS FOR THE 2023 AUDITS.
SO THE AUDITS HAVE NOW MOSTLY CAUGHT UP.
UM, THE, UH, MONTHLY OVERSIGHT MEETINGS, UM, WERE ESTABLISHED WITH COUNCIL AND THE WASTEWATER TREATMENT PLANT LEADERSHIP.
UH, RIGHT NOW AS IT STANDS, AND I'M JUST ROLLING THIS FORWARD SINCE WE'VE LEFT, COMMISSION MEETINGS ARE NOW EVERY OTHER MONTH IN TAC MEETINGS ARE MONTHLY.
THE LEE CHAIN REVENUE POLICY CLARIFIED IT WAS RECONCILED AND IT IS NOW HELPING TO RESTORE THAT INDUSTRY PARTNER CONFIDENCE.
AND FINALLY, I THINK I CAN REPORT THAT THE FOURTH, UM, AMENDMENT, UM, THAT WAS DRAFTED IS FINALLY POSTLE REVIEW, UH, WITH INTERVIEW PARTNERS.
AND CURRENTLY UNDER CITY REVIEW.
I'M LOOKING AT THE CITY ATTORNEY TO MAKE SURE THAT I ACTUALLY HAVE THAT ACCURATE, BUT I BELIEVE I DO.
THERE SHOULD PROBABLY BE SOMETHING CIRCULATED AT THE LATEST EARLY NEXT WEEK.
SO THAT IS WHERE WE ARE ON THAT.
UM, REMEMBER, JUST TO REMIND EVERYONE, THIS FOURTH AMENDMENT HAS ACTUALLY BEEN IN REVIEW SINCE LAST JULY AND HAS FACED SEVERAL HICCUPS AS WE'VE BEEN SORT OF MOVING THROUGH THE PROCESS BECAUSE OF VARIOUS ITEMS AND THINGS THAT HAVE HAPPENED WITHIN THE WASTEWATER TREATMENT PLAN.
SO THAT HAS BEEN IN PROCESS, ACTUALLY, I THINK SINCE STACY STARTED.
SO YOU CAN HEAR ABOUT A YEAR, RIGHT? YEP.
SO I REMEMBER RUSS FINISHING IT UP.
SO, UM, COUPLE OF KEY ASSESSMENTS.
SO THERE WAS THE DEBERRY REPORT, WHICH WAS REALLY THE ENGINEERING REPORT OF MAINTENANCE.
UM, THAT IS THAT CONDITION ASSESSMENT.
AND THAT IS WHAT WE PUSHED TO SEE WHEN WE FIRST GOT ON BOARD IN 23.
THERE WAS ALSO A HAZEN ANDER STAFFING EVALUATION.
SO THE DEBERRY REPORT IDENTIFIED, REMEMBER WE WERE IN HERE, I DON'T KNOW, MAYBE A YEAR AGO TO TALK ABOUT THE DEBERRY REPORT.
IT WAS $21 MILLION OF ADDITIONAL ITEMS. THAT BEING SAID, IF YOU RECALL, HALF OF THE ADDITIONAL ITEMS THAT WERE IN THERE WERE STUDIES FOR OTHER ADDITIONAL ITEMS, WHICH IS WHY I DON'T FEEL CONFIDENT UP HERE TELLING YOU THAT IT'S $21 MILLION OF DEFERRED MAINTENANCE BECAUSE THE OTHER STUDIES HAVE TO BE COMPLETED IN ORDER TO DO THAT.
AND I KNOW SOME OF THEM ARE IN PROGRESS NOW, AND WE'LL GO THROUGH THAT IN A LITTLE BIT.
AND THEN THE HAZEN SORTER STAFFING EVALUATION OR RECOMMENDED ADDITIONAL 17 STAFF, UM, TO ADDRESS SOME OPERATIONAL GAPS.
AGAIN, I DO NOT BELIEVE THOSE HAVE BEEN FILLED.
SO JUST PAINTING A PICTURE OF WHERE WE ARE RIGHT NOW.
SO WE DO HAVE ONGOING CHALLENGES.
THERE HAVE BEEN SIGNIFICANT GOVERNANCE, GOVERNANCE AND PLANNING IMPROVEMENTS, BUT THERE'S STILL SOME CORE ISSUES OUT THERE.
UM, MAJOR INFRASTRUCTURE UPGRADES REMAIN UNFUNDED, ALTHOUGH WE ARE MAKING PROGRESS THERE.
AND THE STAFFING SHORTAGES CONTINUE TO HAVE AN OPERATIONAL ST STRAIN.
THE NEXT HANDFUL OF SLIDES IS JUST A SUMMARY OF WHAT'S IN THE JU REPORT AND THEN WHAT'S IN THE HAZEN AND SOYER REPORT.
I'M GONNA MOVE THROUGH THIS VERY QUICKLY BECAUSE I KNOW I HAVE BEEN THROUGH THESE REPORTS WITH EVERYONE, BUT WE DO HAVE TWO NEW MEMBERS OF COUNSEL WHO MAY NOT HAVE BEEN PRESENT.
SO IF YOU ALL NEED ME TO SLOW DOWN A LITTLE BIT, JUST LET ME KNOW.
'CAUSE I, I, I DO NOT KNOW WHAT YOU ARE AWARE OF FROM THOSE STUDIES.
UM, BUT THE COMPREHENSIVE FACILITY WALKTHROUGH THAT WAS DONE BY BERRY WAS DONE IN FEBRUARY OF 23.
UM, AND THEY RECOMMENDED A NOR A NUMBER OF CAPITAL IMPROVEMENTS.
AND THEY REALLY FOCUS PRIMARILY ON SAFETY COMPLIANCE AND THEN SORT OF SECONDARILY ON RELIABLE OPERATIONS.
BUT THERE ARE OPERATIONAL SUGGESTIONS IN THERE.
BUT THE CORE FUNCTIONALITY OF THOSE RECOMMENDATIONS IS AROUND COMPLIANCE AND SAFETY.
THEY PRIORITIZE THINGS INTO BUCKETS, RIGHT? MAJOR INFRASTRUCTURE DEFICIENCIES, HIGH PRIORITY, UM, INVESTMENTS THAT ARE REQUIRED IMPROVEMENT.
UM, YOU KNOW, THEN THERE'S SORT OF LIKE A MIX OF THE MIDDLE GROUND, UM, AND THEN THE DEFERRED MAINTENANCE THAT THIS, THAT THE, THE RISKS REMAIN AND THEN THE
[00:20:01]
SORT OF THE LONG TERM, UM, ASSET MANAGEMENT THAT IS NEEDED.SO EVERYTHING HAS BEEN BUCKETED AND WE WILL GO THROUGH THOSE AND NOT ONLY HAVE THEY BEEN BUCKETED, BUT THEY'VE ALSO BEEN PRIORITIZED.
SO THERE IS HIGH PRIORITY CRITICAL.
THERE'S A LOT OF HIGH PRIORITY ITEMS. I KNOW SOME OF THESE HAVE ALREADY BEEN PICKED OFF.
MEDIUM PRIORITY, WHICH IS REALLY ABOUT LONG-TERM STABILITY AND PERFORMANCE.
AND THEN THOSE CONTINUOUS IMPROVEMENT RECOMMENDATIONS.
A LOT OF THE THINGS THAT WE RELY ON FROM THIS, THE COMMONWEALTH ARE THOSE CONTINUOUS IMPROVEMENT RECOMMENDATIONS TO SORT OF CLEAR US OUT OF THOSE CRITICAL, YOU KNOW, UM, UM, LETTERS THAT WE'VE BEEN GETTING.
A LOT OF THOSE HAVE TO DO WITH LONG ONGOING CRITICAL MAINTENANCE.
THE HIGH PRIORITY ITEMS TOTAL ABOUT 21 MILLION.
AND THEN THE MEDIAN PRIORITY ARE ABOUT 420,000.
AND THE CONTINUOUS IMPROVEMENTS ARE ABOUT 2 MILLION.
AGAIN, THE HIGH PRIORITY, THIS IS LIKE THE CRITICAL SAFETY, COMPLIANCE, RELIABILITY, AND UNINTERRUPTED OPERATIONS.
AND I JUST WANNA BE CLEAR THAT WORD UNINTERRUPTED OPERATIONS, IT'S UNINTERRUPTED.
I THINK IF I RECALL, AND I'M GONNA LOOK AT MR. PARKER HERE TO KEEP ME, UM, SAFE HERE, BUT I BELIEVE WHEN WE FIRST MET, YOU HAD SAID IF THE FACILITY IS DOWN FOR AS LITTLE AS FOUR HOURS, SOME OF OUR INDUSTRY PARTNERS LOSE A MILLION DOLLARS OR MORE.
SO DID I GET THAT RIGHT? CLOSE, CLOSE ENOUGH.
SO JUST TO KEEP EVERYTHING MOVING IS WHAT WE NEED TO DO IN ORDER TO KEEP OUR INDUSTRY PARTNERS AND MANUFACTURING PARTNERS MOVING.
SO JUST BEING DOWN FOR EVEN A DAY IS HUGELY IMPACTFUL TO OUR PARTNERS.
AND SO WE HAVE TO MAKE SURE AS A JURISDICTION THAT EVERYTHING IS DOWN AS LITTLE AS POSSIBLE.
THOSE ARE THOSE HIGH PRIORITY ITEMS. MEDIUM PRIORITIES.
THESE ARE THE ONES TO MAKE SURE THAT WE'RE MORE RESILIENT.
SO POWER OUTAGES, THAT KIND OF STUFF.
AND THEN THERE'S THE CONTINUOUS OPTIMIZATION.
ONCE WE HAVE ALL THE CRITICAL THINGS CLOSED, WHAT DO WE NEED TO DO TO MAINTAIN EVERYTHING? SO JUST LIKE THE AUDITS, RIGHT? IT'S ONE THING TO FIX THE RISKS AND CLOSE THE GAPS.
IT'S ANOTHER THING TO MAINTAIN THEM.
SO I WAS HERE A LITTLE WHILE AGO TALKING ABOUT STANDARD OPERATING PROCEDURES.
GREAT, YOU HAVE THEM NOW, BUT EVERY YEAR YOU ALSO HAVE TO MAINTAIN THEM, MAKE SURE THEY'RE ACCURATE, MAKE SURE THEY'RE APPROVED, MAKE SURE YOU HAVE THE RIGHT PEOPLE OVER THEM.
IT'S THE SAME THING WITH A WASTEWATER TREATMENT PLAN.
ONCE YOU CLOSE THOSE RISKS AND FIX THE MAINTENANCE ISSUES, YOU ALSO HAVE TO DO CONTINUOUS MAINTENANCE AND OPERATIONS ON THEM.
ALRIGHT? I'M NOT GONNA GO THROUGH EACH ONE OF THESE INDIVIDUALLY.
SO WHAT HAPPENS NOW IS THERE IS A CAPITAL MAINTENANCE IMPROVEMENT PLAN THAT HAS BEEN APPROVED.
SO WHAT IS IN THESE SLIDES IS DIRECTLY FROM WHAT'S IN THE DEBERRY REPORT.
NOW, THINGS HAVE BEEN BUCKETED AND PRIORITIZED SLIGHTLY DIFFERENTLY BY THE COMMISSION AND BY THE TAC.
SO IT'S NOT CLEARLY ONE-TO-ONE.
BUT I WANTED TO KEEP EXACTLY WHERE WE WERE WITH THE BERRY STUDY.
SO THERE ARE SOME THINGS IN HERE THAT HAVE ALREADY BEEN COMPLETED.
FOR EXAMPLE, THE FIRST ONE THERE, THE SWITCH GEAR REPLACEMENT DONE.
IF YOU LOOK DOWN THE PUMP STATION, THE ELECTRICAL IMPROVEMENTS, SOME OF THOSE ARE IN PROGRESS.
SO IF YOU SEE THOSE BOLD HERE AS WE MOVE THROUGH, SOME OF THOSE ARE IN PROGRESS OR DONE.
SO THE PRIMARY AND SECONDARY CLARIFIERS, THOSE ARE IN PROGRESS.
UM, ACTUALLY I THINK THOSE ARE SUPPOSED TO BE DONE THIS WEEK.
AND MOST OF THESE OTHER ITEMS HAVE BEEN BUCKETED AND PUT ON THAT TOOL.
AND I KNOW STACEY KEEPS TRACK OF THAT TOOL AND WILL, UM, BRING IT TO ATTENTION.
HOW OFTEN DO YOU BRING IT TO COUNCIL WITH THE TERM IT'S EVERY MONTH, RIGHT? MM-HMM
SO YOU GUYS KEEP TRACK OF THAT EVERY MONTH TO KEEP THINGS MOVING.
BUT AS YOU CAN SEE, OTHER THAN THE FIRST PIECE OF THAT, WHILE THERE IS A PLAN IN PLACE, A GREAT DEAL OF THESE REMAIN UNDONE.
THE NET, THE BURY, AND I'VE SAID THIS ALREADY, THERE'S IMMEDIATE INVESTMENTS THAT HAVE TO BE DONE.
THERE'S A PHASED APPROACH THAT THE TAC AND THE COMMITTEE HAS COME UP WITH.
UM, AND A GOOD PART OF THESE ARE ADDITIONAL STUDIES THAT ARE EITHER IN PROGRESS OR ABOUT TO BE DONE OR NEED APPROVAL TO BE DONE, DEPENDING ON THE PRIORITIZATION OF THEM.
BUT THERE'S A SIGNIFICANT AMOUNT OF WORK THAT HAS TO GET DONE TO CATCH THE PLAN UP.
NOW, THE STAFFING EVALUATION SUMMARY AS THE SECOND PIECE THAT WAS DONE, AND THIS IS THE ONE THAT SAYS YOU NEED ADDITIONAL 17 POSITIONS.
AND AGAIN, THIS IS A BIT OF AN OVERVIEW FOR YOU.
YOU'VE SEEN THIS BEFORE, BUT THE HIGHEST GAPS, NOT SURPRISINGLY, EIGHT POSITIONS IN MAINTENANCE, THREE IN OPERATIONS, THAT'S THE BIGGEST OF THE 17.
THAT RIGHT THERE IS 11 OF THE 17.
UM, THERE IS A TON OF RELIANCE IN OVERTIME.
UM, AND THERE'S NOT ENOUGH OF A PREVENTATIVE MAINTENANCE STAFF.
UM, AND JUST NOT ENOUGH OF THE SAFETY AND OVERSIGHT.
UM, NOT ENOUGH OF COMPLIANCE SUPPORT.
AND THAT ADMINISTRATIVE RESOURCE
[00:25:01]
THAT'S THE BACKBONE OF KEEPING EVERYTHING MOVING ALSO IS NOT THERE.A COUPLE OF KEY DRIVERS FOR CONCERN HIGH OVERTIME, OF COURSE, THAT ALSO MEANS HIGH COST, RIGHT? YOU'RE PAYING PEOPLE MORE IF THEY'RE THERE OVERTIME OR IF THEY'RE THERE FOR, UM, THE SECOND BUCKET, WHICH IS REACTIVE OPERATIONS.
SO INSTEAD OF STAYING AHEAD OF SOMETHING, YOU ARE REACTING TO THE CURRENT FIRE DRILL AND THE SAFETY CONCERNS.
UM, AND THEN THE LAST TWO HERE ARE THE STAFFING SHORTAGES IN INSUFFICIENT PREVENTATIVE MAINTENANCE CAPACITY AS OF 2025.
SO AS OF THIS YEAR, THIS PAST YEAR'S CURRENT BUDGET, THE RENEWAL FACILITY HAS 56 POSITIONS ACROSS ALL DIVISIONS.
SO IF THEY ARE NOW RECOMMENDING INCREASING STAFFING TO 71, RIGHT NOW WE ARE STILL 15 POSITIONS SHY.
AND YOU CAN SEE RIGHT HERE IN THE BUCKETS THE CURRENT AND THE RECOMMENDED AND THE GAP.
AND THEN WE GO INTO FURTHER DETAIL HERE ABOUT THE DIVISIONAL NEEDS, AGAIN IN THOSE KEY BUCKETS TO KEEP IN MIND THAT THE BIGGEST NEEDS ARE ALSO IN OPERATIONS, IN MAINTENANCE HERE AS WELL.
ALL RIGHT, I'M GONNA PAUSE FOR A MINUTE 'CAUSE I KNOW I JUST THREW A LOT OF DATA AND NUMBERS AT EVERYONE.
AND MAKE SURE THAT THERE'S NO QUESTIONS BEFORE WE GET INTO THE DISCUSSION ON THE DECISION THAT NEEDS TO BE MADE.
ANYONE HAVE ANYTHING THAT THEY'D LIKE TO CHAT? GO AHEAD.
YOU ESSENTIALLY HAVE AN OPTION TO DO ONE OF THREE THINGS.
ONE, HIRE A REALLY HIGH PERFORMING CEO OR GENERAL MANAGER, WHATEVER YOU CALL IT, AND RETAIN THAT CITY OPERATED STRUCTURE.
TWO, CONTRACT OUT THE OPERATIONS AND MAINTENANCE WHILE RETAINING, WHILE MAINTAINING OWNERSHIP OF THE PLANT.
AND THREE, PURSUE A SALE OF THE PLAN AS A WHOLE OR ESTABLISH SOME FORM OF PRIVATE PUBLIC PARTNERSHIP.
THE NEXT HANDFUL OF SLIDES, WE'RE GONNA TALK THROUGH THE DIFFERENT OPTIONS AND WHAT WE SEE AS THE PROS AND THE CONS.
AGAIN, DEPENDING ON WHERE YOU DECIDE TO MOVE ON THIS ONE, THERE'S MORE DETAILS TO DISCUSS.
BUT GIVEN THE NATURE OF THE CITY COUNCIL MEETING, WE WANTED TO HIT YOU WITH SORT OF THE, THE, THE BIGGER POINTS.
SO KEEPING IT WITHIN THE FOLD HERE AS HOPEWELL, RIGHT? YOU MAINTAIN FULL CITY OWNERSHIP AND CONTROL OF THE FACILITY.
UM, YOU HAVE THE OPPORTUNITY TO BRING IN WHOMEVER YOU WANT.
UM, AS A HIGH LEVEL LEADERSHIP, UM, YOU, WE CAN DO A SEARCH, SOMEONE WITH STRONG UTILITY, REGULATORY AND TECHNICAL EXPERIENCE, BUT ALSO SOMEONE, AND THIS IS HEATHER'S EDITORIAL, SOMEONE WITH GOOD LEADERSHIP SKILLS.
REALLY IMPORTANT, ESPECIALLY WHEN YOU'RE IN A TURNAROUND SITUATION WITH THIS PLAN.
AND THEN ALSO THE CITY CAN MAINTAIN DIRECT OVERSIGHT OVER FINANCE OPERATIONS, CAPITAL STRATEGY.
AND THAT REMAINS HERE, ALONG WITH OF COURSE, THE INDUSTRY PARTNERS AND THE COMMISSION.
TRULY YOUR SUCCESS DEPENDS ON WHO YOU HIRE,
WHETHER OR NOT YOU HIRE THE RIGHT LEADER, YOU ALSO MAINTAIN THE LIABILITY FOR EVERYTHING THAT HAPPENS.
SO ABOUT A MONTH AGO, FOR EXAMPLE, YOU HAD THIS BILL THAT IS YOUR LIABILITY AND THAT WOULD MAINTAIN YOUR LIABILITY.
SO, AND THEN THREE, THE STAFFING GAPS AND OPERATIONAL ISSUES WOULD HAVE TO BE FILLED.
RIGHT NOW WE'RE TALKING 15 OPEN POSITIONS ON TOP OF A NEW LEADER.
AND THAT IS FUNDING TWO, CONTRACT IT OUT PROS.
YOU CAN BRING IN AN EXPERIENCED OPERATOR WHO DOES THIS ALL DAY, ALL NIGHT AND KNOWS HOW TO DO IT.
THE CITY WILL STILL MAINTAIN OWNERSHIP OF THE FACILITY AND THE REVENUE STREAMS, BUT, AND IT ALSO REDUCES THE BURDEN THAT YOU GUYS WOULD NEED ON INTERNAL STAFFING BECAUSE YOU HAVE OUTSOURCED PIECES OF THAT.
THE CONS, AND THIS IS GIVEN CITY HISTORY, THE CITY STILL HAS TO MANAGE THAT CONTRACT.
IT IS NOT ENOUGH TO HIRE A FIRM AND SAY, OKAY, OFF YOU GO AND THEN NOT HAVE ANY OVERSIGHT.
YOU GUYS ARE ALSO STILL RESPONSIBLE FOR ANY OF THE CAPITAL IMPROVEMENTS THAT NEED TO BE DONE.
SO WE HAD JUST ESTIMATED THAT AT ABOUT $24 MILLION PLUS THE STUDIES, BUT LESS THE 4.5 THAT HAVE ALREADY BEEN HANDLED.
AND THERE'S ALSO A TRANSITION PERIOD.
SO LIKE ANYTHING ELSE, WHEN YOU BRING ON A NEW CONSULTANT OR A CONTRACTOR, THERE'S A LEARNING PERIOD.
SO YOU HAVE TO GO THROUGH THE PROCUREMENT PERIOD, THEN YOU HAVE TO GO THROUGH THE LEARNING PERIOD.
AND SO THERE'S A HANDSHAKE THERE.
SO IT'S NOT A LOT OF PEOPLE THINK WHEN YOU OUTSOURCE THINGS THAT EVERYTHING SORT OF GETS FIXED.
IT DOES IF IT HAS THE RIGHT OVERSIGHT, IT, THE RIGHT TRAINING, ET CETERA.
BUT THOSE ARE VERY AND STAFFED
[00:30:01]
APPROPRIATELY.AND THE LAST PIECE HERE IS TO SELL THE PLANT AND OR DO A PRIVATE, A PUBLIC PRIVATE PARTNERSHIP.
BIG PROS HERE TRANSFER THE FINANCIAL OPERATIONAL RISKS TO A PRIVATE PARTNER.
IT'S POTENTIAL FOR UPFRONT PAYMENT.
SO IF YOU'RE GONNA SELL THE PLANT, IT IS WORTH SOMETHING EVEN IN ITS CURRENT STATE.
UH, BUT YOU CAN USE THAT FUNDING TO SUPPORT WHATEVER ELSE YOU HAVE ON YOUR CITY FOR GOALS.
UM, IT ALSO GIVES YOU ACCESS TO PRIVATE CAPITAL, UM, AND TECHNICAL RESOURCES FOR MODERNIZATION.
SO IT'LL TAKE YOU FROM WHERE YOU ARE NOW TO MORE OF A BEST IN CLASS MODEL IF YOU DO THE PROCUREMENT CORRECTLY.
CONS, YOU'LL OF COURSE LOSE ALL YOUR CONTROL AND OWNERSHIP, INCLUDING YOUR REVENUE STREAMS. SO LECHE AND ALL OF THOSE.
UM, IT DOES REQUIRE QUITE A BIT OF UPFRONT WORK.
SO I WOULD NOT SUGGEST YOU DO THIS ON YOUR OWN.
I SUGGEST YOU HIRE SOMEONE TO GET YOU THROUGH IT.
UM, IT'S COMPLEX NEGOTIATION, LEGAL STRUCTURING, OVERSIGHT.
I WOULD NOT SUGGEST YOU JUST SAY, OKAY, X, Y, Z COMPANY, YOU TAKE IT, WE'RE OUT.
THERE IS GOING TO BE SOME FORM OF HANDSHAKE AND TRANSFER EVEN IN SELLING.
NOW THE RISK WON'T LIE WITH THE CITY, BUT OF COURSE THE RISK LIES WITH THE CITY.
IF THE WASTEWATER TREATMENT PLANT FAILS.
AND IF IT DOES FAIL, THEN YOU HAVE YOUR ISSUE WITH YOUR MANUFACTURER INDUSTRY PARTNERS.
AND WE JUST WENT THROUGH THE ECONOMIC IMPORTANCE OF THOSE.
AND THEN OF COURSE, THE LAST ONE HERE IS COMMUNITY CONCERNS.
YOU KNOW, IT'S IMPORTANT TO HEAR THE COMMUNITY AND UNDERSTAND WHAT CONCERNS THEY MAY HAVE WITH A FALL ON SALE AND WHETHER OR NOT THAT'S GOING TO IMPACT THEIR LIVES, ET CETERA.
SO THOSE ARE YOUR THREE OPTIONS.
I'M NOW GONNA PAUSE AND TAKE ANY QUESTIONS.
UH, BEFORE WE GET INTO QUESTIONS, BECAUSE I KNOW WE HAVE A, A GUEST HERE THAT, UH, NEEDS TO SPEAK TONIGHT 'CAUSE HE HAS ANOTHER, UH, ENGAGEMENT TO GO TO.
UH, DID YOU WANNA SAY A FEW COMMENTS? UH, SURE.
I MEAN, UM, WAS THAT, DON'T KNOW ME, COLONEL RICH ALKI, THE, UH, INSTALLATION COMMANDER AT, UH, FORT LEE, VIRGINIA, NOW FORT LEE, VIRGINIA.
UH, NO, I, I APPRECIATE THE TIME, UH, COUNCIL MEMBERS AND, AND MAYOR PARK.
UM, SO OBVIOUSLY IT'S, IT'S A CRITICAL CAPABILITY TO, TO FORT LEE.
UM, AS MANY OF YOU KNOW, WE, WE TRANSFER ABOUT 2 MILLION GALLONS OF, OF WATER TO THE WASTE WATER TREATMENT FACILITY, UH, DAILY.
UM, IT'S SOMETHING THAT, UH, I'VE HAD THE OPPORTUNITY TO TAKE A TOUR THERE.
UH, WE'VE COMMUNICATED THIS NOT JUST TO OUR SENIOR COMMANDER, MAJOR GENERAL DONAHUE, BUT THIS HAS BEEN COMMUNICATED, UM, UP THROUGH THE ARMY TO THE DEPARTMENT OF DEFENSE.
AND, UM, YOU KNOW, I THINK AS, AS PARTNERS, UM, 'CAUSE THIS IS SHARED RISK, UH, TO BOTH THE, THE ARMY AND THE MISSION THAT WE HAVE AT, AT FORT LEE.
BUT, UM, OBVIOUSLY SHARED RISK TO OUR COMMUNITY BECAUSE THE, THE FOLKS THAT WORK ON FORT LEE, THEY LIVE IN OUR COMMUNITIES, YOUR COMMUNITY, UH, AND THE SURROUNDING COMMUNITIES TO, TO FORT LEE.
SO, UM, SOMETHING THAT WE HAVE LEANED INTO HEAVILY, UH, AS WE'VE HAD MANY CONVERSATIONS WITH, UH, THE LEADERSHIP OF, OF HOPEWELL OVER THE LAST, UH, PROBABLY SIX OR SEVEN MONTHS.
UM, WE APPRECIATE THAT, THAT DIALOGUE.
BUT, UM, YOU KNOW, I THINK WE LOOK AT THIS AS AN OPPORTUNITY FOR, FOR PARTNERSHIP AND UNDERSTANDING, UM, AS WE SEEK SOME FINANCIAL, UM, YOU KNOW, OPPORTUNITIES AS WELL THROUGH THE DEPARTMENT OF DEFENSE.
SO, UM, I APPRECIATE THE, THE OPPORTUNITY TO SPEAK, APPRECIATE THE O UH, OPPORTUNITY TO BE PARTNERS IN THIS.
AND, UH, FROM FORT LEE, UH, YOU, YOU HAVE PARTNERS, UH, AS NEIGHBORS.
AND ALSO, UH, DO WANNA SAY THANK YOU TO YOURSELF, YOUR STAFF, AND THEN ALSO YOUR PREDECESSOR, UH, COLONEL HOYMAN, UM, FOR ALL THAT YOU GUYS HAVE DONE, UM, AND IN PARTNERING AT THE, THE WASTEWATER PLANT.
AND LIKE YOU SAID, YOU KNOW, MENTIONING, YOU KNOW, TRYING TO, UH, GET SOME FEDERAL ASSISTANCE, UH, DOWN THERE FUNDING WISE.
UM, ARE THERE ANY QUESTIONS FOR, UH, MS. NESS OR MR. BOB? UM, WELL, I GUESS I'LL, I'LL BREAK THE ICE.
SO, UM, IN LOOKING IN THIS, UM, I AGREED THERE THERE ARE THREE OPTIONS THAT WE HAVE, BUT THERE'S ALSO, YOU KNOW, THE FOURTH OPTION OF IT BEING, YOU KNOW, SPUN OFF ON INTO A, UH, A SEPARATE, YOU KNOW, SEWER AUTHORITY THAT I THINK NEEDS TO BE GIVEN ANALYSIS TO.
BUT I THINK ONE THING I'M CERTAIN THAT, YOU KNOW, ALL THE CITIZENS WANNA KNOW IS, YOU KNOW, IN LOOKING AT THESE THREE, YOU KNOW, THREE, FOUR OPTIONS THAT ARE PRESENTED, UM, WHAT ARE, YOU KNOW, THE FINANCIAL MODEL'S GONNA LOOK LIKE? WHAT ARE THE RATE STRUCTURES GONNA LOOK LIKE, WHETHER, YOU KNOW, WE, WE CONTRACT ALL THE, THE MAINTENANCE OUT OR, YOU KNOW, WE KEEP IT UNDER THE ARRANGEMENT THAT IT CURRENTLY IS, BUT WE ADD MORE, YOU KNOW, CAPITAL
[00:35:01]
TO ACTUALLY FIX IT TO WHERE IT NEEDS TO BE.OR IF IT WAS TO, YOU KNOW, GO INTO PRIVATE HANDS OR A SEWER AUTHORITY OF SOME SORT.
UM, AND THAT'S PROBABLY SOMETHING, UM, NOT YOU GUYS, BUT YOU KNOW, MR. ROGERS, UM, YOU KNOW, YOU AND YOUR TEAM, I THINK, YOU KNOW, THAT WOULD BE A REALLY GOOD, UM, ANALYSIS FOR CITY COUNCIL TO HAVE.
SO THAT WAY WE KNOW WHICH DIRECTION IS GONNA BE MOST ADVANTAGEOUS FOR THE LONG TERM PHYSICAL HEALTH OF THE CITY.
AND THEN ALSO FINANCIALLY FOR OUR CITIZENS.
YEAH, I MEAN, WELL THAT'S, YOU KNOW, MORE OF A COMMENT, YOU KNOW, JUST TO, TO LOOK.
UM, BUT ONE THING I, I DO THINK THAT, YOU KNOW, COUNSEL NEEDS TO SEE, UM, WHICH HAS NOT BEEN GIVEN TO US, UM, YOU KNOW, THIS STUDY WAS DONE, YOU KNOW, BACK IN 2023 MM-HMM
AND HERE WE ARE TWO YEARS LATER AND, UH, WE HAVE NOT MADE ANY PROGRESS, UM, ON IMPROVING THE OPERATIONS DOWN THERE AT THE PLANT.
UH, SO DO I THINK THAT WE CAN GET 17 POSITIONS, 15 POSITIONS DONE IN ONE FELL SWOOP? NO.
BUT I THINK A STAGGERED APPROACH TO, ALRIGHT, THIS IS OUR FIVE YEAR PLAN THAT WE'RE GOING FROM THIS POINT TO THIS POINT, AND HERE ARE THE POSITIONS THAT WE WANT TO ADD ALONG THE WAY IN, YOU KNOW, WITH THEIR PRIORITIZATION.
UM, AND I THINK, YOU KNOW, ALSO LOOKING AT, UM, RAMPING UP THE, THE CAPITAL SPENDING DOWN THERE, UM, BECAUSE THE, THE CAPITAL BUDGET THAT'S, YOU KNOW, UH, BEEN APPROVED, UM, YOU KNOW, OVER, YOU KNOW, THE LAST 10 YEARS, UM, IT, IT'S JUST, IT'S INADEQUATE.
YOU, YOU CAN'T RUN THAT PLANT ON THERE.
AND IT IS SHOWN THROUGH, UM, YOU KNOW, MULTIPLE DISCHARGES AND, UM, YOU KNOW, THERE, THERE'S, YOU KNOW, BLAME TO GO AROUND ON EVERYBODY, UH, WITH THIS, YOU KNOW, BETWEEN COMMISSION, UH, MEMBERS BETWEEN THE CITY, UM, YOU KNOW, OTHER PARTNERS.
BUT, UM, I THINK WE NEED TO LOOK AT A RAMPED UP, UH, CAPITAL IMPROVEMENT PLAN ON HOW CAN WE GET THE PLANT FROM WHERE IT IS RIGHT NOW.
AND IT'S, YOU KNOW, POOR CONDITION TO WHERE IT SHOULD BE IN, YOU KNOW, FIVE TO EIGHT YEARS.
AND, YOU KNOW, WE MIGHT PROBABLY HAVE TO LOOK AT EXPLORING WHAT VIRGINIA, HOW VIRGINIA AMERICAN WATER DID THEIRS BECAUSE THEY WERE IN A VERY MUCH A SIMILAR SITUATION BACK IN 20 20, 20 21, AND THEY'VE GOT A PHENOMENAL PLANT RIGHT NOW.
UM, AND YOU KNOW, IT'S PROBABLY GONNA END UP TAKING ABOUT, YOU KNOW, 25, $30 MILLION OF CAPITAL EVERY YEAR, YOU KNOW, CONSECUTIVELY FOR FIVE TO EIGHT YEARS TO GET US TO THAT POINT.
UM, AND THAT'S SOMETHING THAT WE KNOW WE NEED TO SEE, UH, IN THAT ANALYSIS.
UM, JUST PIGGYBACKING A LITTLE BIT, ONE OF THE THINGS THAT YOU TALKED ABOUT WAS, UM, YOU KNOW, OVER THE YEARS THERE JUST NOT HAS BEEN INSUFFICIENT CAPITAL MM-HMM
AND ONE OF THE, ONE OF THE SLIDES HERE, IT'S OH, RIGHT HERE.
UM, IN TERMS OF CONTINU, CONTINUOUS IMPROVEMENTS AND, YOU KNOW, OPTIMIZATION MODERNIZATION AND OPERATIONAL FLEXIBILITY OVER TIME.
YOU TALKED ABOUT, YOU TALKED ABOUT, UM, AND YOU KNOW, 2 MILLION, I MEAN, IS THAT A NUMBER? THIS IS ON PAGE.
I WAS LIKE, WHERE ARE YOU? LEMME SEE WHERE THE PAGE IS DOWN HERE.
I'M LOOKING AT YOU, I SEE ALL, YOU KNOW, THESE NUMBERS THAT ARE SAYING, BUT YOU KNOW, IS THIS, IS, IS THIS NUMBER, UM, TO BE CONSTRUED AS AN ANNUAL AFTER EVERYTHING IS DONE, JUST SAY FIVE TO EIGHT YEARS AFTER, YOU KNOW, EVERYTHING'S IMPROVED, IT'S UP TO SPEAK.
ARE WE THINKING THAT, YOU KNOW, PROJECTING AN ANNUAL INVESTMENT OF $2 MILLION, THAT SEEMS VERY LOW.
THAT'S NOT WHAT THAT MEANS, DOES IT? NO, DON'T FORGET, THIS IS THE DEBERRY STUDY.
AND REMEMBER, A NUMBER OF THE DOLLAR FIGURES THAT ARE HERE ARE, ESPECIALLY AS YOU GET LOWER DOWN ON THE CONTINUOUS IMPROVEMENT PIECE, OUR STUDIES POST THE BIGGER THINGS THAT WILL TELL YOU WHAT YOUR EXPENSES ARE GOING FORWARD.
AND REMEMBER WE CAME TO YOU ABOUT A YEAR AGO AND SAID, LISTEN, THIS ISN'T REALLY THE NUMBER BECAUSE WE HAVE TO DO THE STUDIES, RIGHT? AND SO THE ANSWER IS TBD YEAH.
I'LL TELL YOU IT'S MINIMUM $2 MILLION.
UM, BUT THE REALITY IS WE DON'T KNOW WHAT THAT NUMBER IS.
UNTIL WE GET EVERYTHING UP AND RUNNING, BECAUSE WHAT WE HAVE HISTORICALLY IS NOT A GOOD INDICATION OF WHAT YOU'RE GONNA NEED GOING FORWARD YET.
I GUESS THE
BUT THE BOTTOM LINE IS WE NEED TO INVEST IN SOME PERSONNEL YES.
AND I MEAN, WE'VE GOT TO GET LEADERSHIP LEADERSHIP.
LEADERSHIP HAS TO BE THE NAME OF THE GAME, BIG THING NO MATTER WHAT.
AND IT REALLY HAS TO BE A MATTER OF URGENCY.
UM, BUT, YOU KNOW, WE CAN'T, WE CAN'T BE SO URGENT THAT WE, YOU KNOW, WE DON'T FAIL TO VET THESE PEOPLE VERY CAREFULLY.
WE'VE REALLY GOTTA BE CAREFUL IN THE VETTING PROCESS.
[00:40:01]
TO ME, I MEAN, IT'S JUST REALLY, I MEAN, IT'S, IT'S EMBARRASSING AND DISAPPOINTING THAT TWO YEARS LATER AFTER THESE RECOMMENDATIONS WERE DONE THAT WE ARE SITTING HERE HAVING THIS CONVERSATION.UM, AND I, I'M JUST EXCITED TO SEE SOMETHING ON PAPER WITH SOME OPTIONS AND THESE ARE THE POSSIBILITIES.
SO I APPRECIATE WHAT YOU GUYS HAVE DONE.
UM, AND ALSO LOOK FORWARD TO WORKING WITH, UM, OUR INDUSTRY PARTNERS, BECAUSE I THINK OUR INDUSTRY PARTNERS ARE VERY EXCITED ABOUT THE POSSIBILITY OF GETTING THIS THING BACK ON TRACK.
I MEAN, YOU KNOW, JUST THE IDEA OF IT, OF THE, OF LOSING A A MILLION DOLLARS OVER FOUR HOURS IS PRETTY FRIGHTENING.
I MEAN, IF YOU'RE AN INDUSTRY PARTNER, AGREE, AND I, AND WE'D BE REMISS, AND I KNOW BOB WILL SAY THIS IN NOT RELAYING TO YOU THAT YOUR INDUSTRY PARTNERS ARE ALSO YOUR PARTNERS AND THEY KNOW HOW TO RUN A SIGNIFICANT NUMBER OF THESE ITEMS. AND WE SHOULD BE, WHEN WE HAVE ISSUES TALKING WITH THEM ABOUT IT.
'CAUSE THEY MAY KNOW A QUICKER, BETTER, FASTER WAY TO FIX IT OR STAY ON TOP OF IT.
SO WHEN WE CAME IN IN 2023, IT WAS REALLY SILOED.
AND I'M REALLY ENCOURAGED TO SEE THAT THE MEETINGS ARE ONGOING NOW, BUT I JUST, I WOULD BE REMISS IN NOT JUST EMPHASIZING TODAY TO PLEASE CONTINUE TO COMMUNICATE WITH THOSE INDUSTRY PARTNERS, ESPECIALLY, AND I THINK BOB TRIED TO TOUCH ON THIS EARLIER AS COUNCIL MEMBERS GET TO KNOW YOUR LEADERSHIP OF THOSE INDUSTRY PARTNERS AND BUILD THAT RELATIONSHIP BECAUSE YOU GUYS ARE GONNA DO BETTER TOGETHER THAN YOU WILL SEPARATE.
WE STILL HAVE COMMUNICATION CHALLENGES FOR SURE.
UH, SUSAN, DID YOU HAVE YOUR LIGHT ON OR I DID NOT.
UM, ARE THERE ANY OTHER QUESTIONS OR COMMENTS, UH, FOR MS. NESS, MR. BOB OR MR. ROGERS? OKAY.
UM, SO MR. ROGERS, I THINK, UH, YOU HAD YOUR, UM, YOUR DO OUTS.
UM, AND I KNOW WE'LL CONTINUE, UH, THIS DISCUSSION, YOU KNOW, GOING FORWARD, UM, PROBABLY IN OUR, YOU KNOW, NEXT SEVERAL, UH, CITY COUNCIL MEETINGS, UM, I THINK, YOU KNOW, THE, THE TOP PRIORITY IS, YOU KNOW, THE, THE OPERATIONAL PLAN, YOU KNOW, LOOKING AT THOSE CAPITAL PROJECTS AND THEN ALSO, UM, YOU KNOW, BRINGING BACK, UH, YOU KNOW, SOME ANALYSIS ON THE RATE STRUCTURE AND HOW THOSE RATES WOULD LOOK UNDER, YOU KNOW, THE THREE TO FOUR OPTIONS.
UM, I HAD SENT IT TO COUNSEL, UH, EARLIER TODAY, UH, AN RFP FOR, UH, EXECUTIVE RECRUITMENT SERVICES, UH, UH, FOR BOTH THE, UM, WATER RENEWAL DIRECTOR AND FOR CITY MANAGER.
AND WE ARE LOOKING TO GET A FIRM THAT CAN, UM, DO BOTH ON A SCHEDULE AND, UM, AS I'VE SAID IN THE COVER MEMO, WE'VE CONSIDERED THE TIME IT TAKES, UM, HAVING BEEN THROUGH A NUMBER OF RECRUITMENT PROCESSES AND MANAGED THE NUMBER, YOU KNOW, THE TIME IT TAKES TO GET IT DONE.
AND, UH, I KNOW THAT, UH, SOME MAY REACT THAT, YOU KNOW, WHEN YOU SEE A TARGET DATE OF, UH, YOU KNOW, JANUARY ONE, THAT THAT'S TOO LONG.
WELL, THE FACT IS THE PEOPLE THAT WE ARE PROBABLY LOOKING AT ALREADY HAVE A JOB AND THEY'RE GONNA NEED TIME, UH, ONCE THE APPOINTMENT IS, UH, UH, IS MADE AND THEY'RE DESIGNATED, UH, TO, TO EVA, TO, TO, UH, TRANSITION, YOU KNOW, OUT OF THAT POSITION.
BUT WE PROVIDED YOU THAT, THAT RFP AND OPEN TO ANY COMMENTS THAT YOU, UH, YOU HAVE, UH, UH, ABOUT IT.
IF WE CAN GET YOU THOSE COMMENTS, UH, BY TUESDAY.
OUR, OUR NEXT CITY COUNCIL MEETING.
UH, DO I HAVE A MOTION TO ADJOURN? I ALRIGHT.
ANY OPPOSED? NONE HEARING THE MEETING IS ADJOURNED.