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From YouTube: PWSA Blue Ribbon Panel Presentations - 9/12/17
Description
Representatives from Infrastructure Management Group Inc., which is studying possible ways to restructure the Pittsburgh Water and Sewer Authority, hold its second session with a Blue Ribbon Panel of experts.
B
Everybody,
if
you
can
take
your
seats,
I
appreciate
you
being
here.
My
name
is
Kevin
Allen
chief
of
staff
from
air
Peduto
pleased
to
just
kick
off
yet
another
event.
Here,
a
meeting
of
the
blue-ribbon
panel
to
consider
IMG's
work
relating
to
PWSA,
first
and
foremost,
again
appreciate
all
the
work
that
you
guys
have
been
doing
from
the
very
beginning,
very
busy
members
of
the
community
here
to
help
us
in
a
very
open
public,
transparent
manner,
take
a
hard
look
at
the
authority
and
I
also
do
want
to
thank
the
board
in
leadership
at
PWSA.
B
I
think
we've
been
all
working
very
hard
to
address
some
of
the
problems,
while
this
this
hard
look
at
the
future
of
this
authority
as
being
done
under
the
leadership
of
Steve,
Steckler
and
IMG.
So
for
today's
purposes
we
will
I
want
to
have
Steve
set
the
agenda
here
for
today.
This
is
our
second
of
the
public
meetings
that
we're
having
that's
going
to
lead
to
a
set
of
recommendations
that
we'll
all
consider
together.
We
do
want
to
open
it
up
for
public
comment.
B
I
have
a
number
of
folks
here
who
have
signed
up
to
give
we'd
ask
to
have
those
limited
to
three
minutes,
and
then
we
have
invited
with
us
some
folks
from
Indianapolis
as
well
as
Tulsa.
Two
other
municipalities
have
dealt
with
similar
situations
that
we
have
here
in
the
city
of
Pittsburgh,
we're
relating
to
our
Water
Authority,
just
to
give
a
sense
as
to
how
the
problems
emerged
in
their
communities
how
they
dealt
with
them.
B
How
the
public
came
together
to
present
solutions
to
rebuild
their
own
water
and
sewer
authorities
and
then
finally
have
an
open
session
foot
panelists
to
ask
the
hard
questions
again:
that's
the
charge.
Every
time
we
sit
at
this
table
is
to
ask
hard
questions,
and
that
goes
to
the
public
as
well.
There
is
no
topics
that
should
not
be
addressed
that
this
is
the
time
to
do
so.
These
decisions
will
be
made
in
the
backroom
they'll
be
made
in
an
open
public,
transparent
manner.
C
You,
first
of
all,
it's
good
to
see
you
all
again.
I've
got
some
great
things
to
interest
very
interesting
things
to
tell
you
today.
This
is
probably
one
of
the
the
richest
in
terms
of
new
information,
that's
being
transferred
as
part
of
this
deliberation
process,
and
the
highlight,
of
course,
will
be
our
guest
presenters
today
on
August
28th,
we
met
and
we
delivered
a
briefing
book
on
the
restructuring
options,
and
hopefully,
you've
had
a
chance
to
review
that.
C
Second,
we
relate
our
initial
impressions,
the
initial
impressions
from
our
operations
and
maintenance
and
asset
management
team.
In
there
looking
at
PWSA
system,
we
will
actually
be
delivering
the
final
results
of
that
in
a
memorandum
form
which
will
be
sent
to
everyone
and
also
posted
on
the
microsite
microsite
for
the
restructuring
initiative.
So
everyone's
going
to
see
that
that
final
final
memoranda
as
well
today,
of
course,
we're
going
to
explore
some
examples
of
restructuring
that
have
taken
place
around
the
country
with
utilities
that
have
been
faced
with
similar
issues.
C
Although
he
will
not
be
presenting
to
this
panel,
she
is
joined
by
Eric
Lee.
Who
is
the
finance
director
for
the
Tulsa
metropolitan
utility
authority
of
the
Department
of
Water
and
Sewer
in
the
city
of
Tulsa,
and
he's
actually
been
responsible
for
the
staff
level
execution
of
the
restructuring
initiatives
in
and
within
the
utility,
as
well
as
the
implementation
of
the
performance
standards
and
performance
agreements
that
are
in
interdepartmental
that
have
been
a
key
to
the
success
of
the
restructuring
initiative
and
in
Tulsa
they
will
be.
C
For
those
of
you
have
additional
questions,
please
we
again
submit
those
questions.
If
you
aren't
able
to
ask
them
here,
and
we
will
see
it
to
it,
that
they
get
to
Lauren
and
to
air
again
to
Dan
Evans,
who
is
are
going
to
be?
Our
second
fuse
me,
our
first
presenter
I
plane
schedules
dictate
the
order
here
by
the
way,
not
even
the
alphabet.
C
Dan
is
the
president
of
the
Chairman.
Excuse
me
of
the
board
of
trustees
of
a
citizens,
Energy
Group,
which
is
a
private
nonprofit
charitable
trust
which
owns
the
assets
of
the
water
and
sewer
assets
of
the
city
and
in
Annapolis.
Dan
is
here
to
represent
an
introduction
to
the
restructuring
option
of
a
transfer.
A
transfer
of
the
assets
to
a
an
ostensibly
non
independent
non-governmental
entity
that
also
provides,
in
this
case
other
utility
services
and
Dan,
will
be
talking
about
the
about
the
examples
of
that
transfer.
B
So
published
almost
there
was
a
request.
Actually,
so
we
do
have
a
number
of
speakers.
I
thought
it
would
be
helpful
for
our
out-of-town
guests
to
listen
to
the
community.
This
is
again
the
mayor
feels
very
strongly
that
the
community
voice
should
be
heard
here.
So
what
we
want
to
do
to
begin.
We
have
some
speakers.
We
had
a
list
of
folks
sign
up
and
we'd
like
you
to
hear
their
comments
first,
so
first
on
the
list,
I
have
kind
of
controller
chelsa,
Wagner.
D
So,
as
Kevin
said,
I'm
the
county
controller
for
Allegheny
County
and
we've
been
involved
with
some
of
our
water
issues
from
the
standpoint
of
first
looking
at
what
the
Health
Department
for
the
county
was
and
was
not
doing.
But
today
here
I
want
to
direct
my
comments
to
what
is
being
considered
by
the
city
that
I
believe
to
be
very,
very
dangerous,
and
not
necessarily
remembering
some
of
our
history.
Some
fairly
recent
history
with
respect
to
water.
D
Suffice
it
to
say
that
she
referred
to
it
as
crap
that
it
was
basically
masking
something
very
simple
that
was
affecting
people
terribly
and
I
would
say.
We
have
some
of
those
same
dynamics
here
today.
We're
talking
about
water,
we're
talking
about
finances,
we're
talking
about
pipes.
Frankly,
this
isn't
really
rocket
science.
D
We
have
to
remember
our
history
in
spite
of
all
the
money
spent,
including
five
hundred
thousand
for
the
report,
that's
being
discussed
today
and
I
would
say,
good
money
going
after
bad
and
all
the
very
capable
people
who
are
assembled
here,
including
yourselves,
who
were
asked
to
lend
your
names
and
your
time
to
this
blue-ribbon
panel.
We
don't
even
know
where
the
lead
lines
are
in
our
city
and
we're
being
told
that
we
won't
know
until
at
least
spring
of
2018.
D
But,
aside
from
that
lead
issue,
we
have
a
report
here.
That's
suggesting
a
list
of
options,
restructuring
options
as
you
phrased
it
from
sale
to
lease
to
new
structures,
but
none
of
them
are
discussing
what
I
believe
to
be
the
most
obvious
answer,
which
is
under
everyone's
nose
here
and
that's
to
govern
and
to
lead.
D
This
is
precisely
why
we
have
city
government,
we
need
government
and
we
need
leadership,
and
if
those
are
present
there
would
be
appreciation
for
history,
because
of
course,
we
know
that
past
is
precedent
so
to
understand
PW
essays,
present
predicament.
We
have
to
understand
PW
essays
history
and
from
what
I've
seen
I
believe.
D
Finding
an
irresponsible
solution
for
immediate
problems
of
the
city
at
that
time
created
new
problems
that
were
allowed
to
fester
and
have
now
come
home
to
roost.
I
can't
see
how
the
situation
we
have
here
today
is
any
different
and
so
frankly,
to
me
that
our
discussion
is
around
restructuring
and
any
form
is
completely
missing
the
major
point
here
and
if
you
look
at
this
report
at
what
has
been
missed
and
mismanaged,
how
does
anything
here
propose
change
that?
D
What
we
need
is
very,
very
clear:
we
need
government,
we
need
leadership,
we
have
to
give
the
people
straight
talk
and
we
have
to
own
up
with
very
clear
answers
and
timelines.
To
be
very
frank,
that's
why
any
of
us,
myself
included,
are
elected.
That's
why
we
elect
a
mayor
to
lead
and
to
govern.
We
shouldn't
have
additional
layers
upon
layers
of
responsibility
that
need
to
be
peeled
back
and
explained
just
like
in
that
movie,
the
big
short
we
have
to
be
straight
with
the
people
of
Pittsburgh.
D
We
have
everything
in
our
current
power
to
do
this
work,
but
we
have
to
be
honest,
so
I'm
very
curious
if
I
will
hear
any
answer
today
and
I'm
looking
forward
to
it.
If
anyone
can
say
to
me
why
we
cannot
do
this
work
in
the
current
structure
with
the
city
government
that,
frankly,
by
that
same
scenario,
transferred
assets
to
a
non-governmental
entity.
So,
let's
not
repeat
the
failures
of
the
past,
let's
make
sure
we
keep
this
public
and
on
it
as
it
is
supposed
to
be
by
a
responsible
city
government.
Thank
you.
E
I'm,
dr.
Vincent
Kolb,
the
pastor
of
6th
Presbyterian
Church,
our
congregation
is
a
part
of
pin
the
Pennsylvania
interfaith
impact,
Network,
a
coalition
of
30
congregations
from
a
variety
of
faiths
who
represent
every
part
of
the
city
that
PWSA
serves
early
this
year.
A
coalition
of
community
groups,
including
Penn,
kicked
off
the
our
water
campaign.
To
date,
our
efforts
to
work
for
safe,
affordable
and
public
water
in
Pittsburgh
have
been
successful
only
because
we
have
had
access
to
a
public
board
of
a
public
authority.
E
We
think
public-private
is
a
misnomer.
It
is
really
private.
Public.
Four
of
the
seven
options
presented
at
the
meeting
were
some
form
of
privatization.
That
includes
a
profit
motive,
I'm
speaking,
specifically
of
the
10
to
15-year
O&M
contract,
the
long-term
lease
concession,
the
private
for-profit
transfer
and
the
selected
service
outsourcing
in
the
booklet
that
was
handed
out.
Many
of
the
pro
privatization
articles
are
written
and
funded
by
private
water
companies
themselves,
who
have
a
clear
self-interest
in
promoting
that
agenda.
E
E
Public
water
is
not
for
sale
and
our
communities
and
our
citizens
will
not
be
sold
a
bill
of
goods.
Our
nation
was
founded
on
the
premise
that
taxation
without
representation
is
tyranny.
We
are
here
to
say
that
privatization
without
representation
is
tyranny
as
well,
and
we
will
not
stand
for
it.
Thank
you.
Thank.
B
F
Name
is
Jamila
LaHood
Judean
I
am
representing
the
hill
district
consensus
group
and
the
our
water
campaign.
Reverend
Kolb
said
that
we
would
not
let
control
of
our
water
authority
be
taken
away
again,
and
we
say
again
because
it
already
happened
once
and
it's
important
to
remember
what
got
us
here
and
the
people
Pittsburgh
did
not
break
PWSA.
F
Pwsa
is
broken
because
big
banks
took
advantage
of
our
water
authority
and
sold
as
credit
default
swaps.
That
resulted
in
hundreds
of
millions
of
dollars
in
debt.
That
Pittsburgh
residents
now
have
to
bear.
Pwsa
is
broken
because
our
politicians
carelessly
gave
away
control
of
our
authority
to
a
French
water
company.
Veolia
PWSA
was
broken
because
Veolia,
a
multinational
corporation,
made
a
profit
off
of
every
dollar
that
they
saved
for
PWSA.
F
They
imposed
dangerous
cost
cuts
measures
that
have
likely
resulted
in
the
lead
crisis
we
are
dealing
with
now.
Veolia
did
nothing
to
write
that
ship.
They
only
made
things
worse
and
viola
walked
away,
taking
with
them
11
million
in
profit.
The
public-private
partnership
we
had
with
Veolia
is
similar
to
the
one
in
India
Palace,
where
they
spent
29
million
to
terminate
their
contract
with
Bo
Lea
because
of
billing
and
labor
concerns.
F
We're
glad
that
folks
from
Indianapolis
are
here
today
to
talk
about
their
recent
experience
with
public
restructuring
after
the
privatization
option,
failed
them
so
badly.
I
cannot
in
good
conscience,
stand
by
and
watch
this
blue-ribbon
panel
be
told
that
privatization
or
public-private
partnerships
are
viable
options
to
fix
PWSA.
Our
public-private
partnerships
with
Veolia
taught
us
that
introducing
a
profit
motive
into
our
water
system
will
never
work
for
the
people
of
Pittsburgh
and
no
matter
who
the
company
profits
will
always
be
prioritized
over
the
needs
of
Pittsburgh's
residents.
Thank
you.
Thank.
G
G
G
There
is
the
elected
officials
and
the
public
government
who's
going
to
have
the
back
of
those
people
they're,
not
any
private
company
whose
elected
is
going
to
back
those
people
and
that's
what
I
need
from
the
city
of
Pittsburgh
right
now
for
me,
I
it
had
water,
I
can
use
for
over
a
year
and
I'm
paying
double
right.
I
pay
for
my
filters,
I
pay
for
my
bottled
water
and
I
pay
PWSA
every
month.
G
H
B
Thank
you
for
the
initial
comments
very
important
to
hear
again
for
the
panels
from
outside
the
city
as
well
so
I.
Just
to
let
you
know
there
will
be
another
comment
section
at
the
end
of
the
conclusion,
so
make
sure
to
take
notes
and
ask
questions
again.
Steve
back
to
you,
but
I
think
we're
gonna.
Kick
it
off
with
Dan
Evans,
who
is
here
with
us
from
Indianapolis
from
the
citizens,
energy
group
board
of
trustees,
mr.
Evans
I.
C
I
I
didn't
catch
the
county
controllers,
first
name
I,
apologize
for
that
Reverend,
Paul
and
jameelah,
and
crystal
I
heard
every
word
that
you
just
said
I've
been
thank
you
for
saying
what
you
said:
I've
been
in
many
such
meetings,
especially
on
LED
and
public
health
issues,
I'm
the
very
recently
retired
CEO
of
Indiana
University
Health.
We
spent
a
lot
of
time
talking
about
these
very
issues,
especially
the
LED
issues
in
Indiana,
which
is
very
similar
to
Pennsylvania
in
terms
of
the
age
of
the
homes
and
the
age
of
the
infrastructure.
I
In
fact,
I
read
on
the
web
on
the
way
here
that
Philadelphia
pencil
is
established
in
1816
in
Annapolis
1821,
so
have
a
feeling
that
our
infrastructures
are
nearly
identical.
We
have
the
same
CSO
issue,
so
here's
the
reason.
I
say
that
if
you
were
in
Indianapolis
with
the
jobs
that
you
currently
have
the
board
of
trustees
of
citizens,
Energy
would
view
you
as
the
beneficiaries
of
the
trust.
So
we've
got
a
unique
ownership
and
structure
which
is
complicated
but
not
really
complex
by
that
I
mean
once
you've
got
it
in
your
head.
I
It's
not
one
of
these
weird
off-the-chart
things.
I
am
chairman,
presents
my
actual
title,
but
I'm
president
of
the
Board
of
Trustees,
the
Board
of
Trustees
sit
on
top
of
a
trust
which
is
a
perpetual
public,
Charitable
Trusts,
meaning
it
can
only
do
one
thing:
return
all
the
value
created
by
the
operation
of
utility
utilities,
which
we
operate
to
the
inhabitants
of
the
residents
of
Indianapolis.
That's
the
only
thing
we
can
do.
I
We
operate
a
water
company
which
I'll
talk
about
in
just
a
second,
a
gas
company,
a
steam
company,
a
chilled
water
company,
the
sewer
company,
storage
facilities,
above-ground
tanks
below
ground
tanks
and
the
infrastructure
that's
associated
with
all
of
those.
The
model
has
existed
since
1882.
So
it's
been
a
very
durable
model.
It
was
established
by
the
community
and
I
was
thinking
or
watching
you
all
present
and
looking
at
the
panel
all
bet
it
was
a
meeting
pretty
much
like
this.
I
The
enemy
in
1882
was
john
d
rockefeller,
and
the
domination
by
East,
Coast
financiers
of
the
energy
market
in
the
Midwest
Indiana
is
a
hot
area
for
underground
natural
gas.
So
you
can
see
what
arose
between
the
two,
so
the
business
leaders
and
the
community
leaders
in
1882
decided
to
establish
a
trust
on
it.
The
hallmark
of
a
trust
is
the
fiduciary
duty
is
simply
to
the
people
who
are
the
beneficiaries.
In
our
case,
those
folks
are
the
inhabitants
of
Marion
County,
which
is
Indianapolis
so
rather
go
through.
I
All
these
slides
I
refer
the
Blue
Ribbon
Commission
to
page
nine
10
and
11
and
12.
Those
are
the
ones
that
discuss
governance.
My
colleagues
from
Tulsa
will
have
a
lot
to
say
about
efficiency
and
operations
as
well
as
governance,
but
because
we
are,
we
are
not
a
for-profit
corporation.
We
have
no
shareholders,
our
indebtedness
is
on
the
bond
or
publicly
rated.
I
Yet
we
have
no
none
of
the
instruments
that
were
discussed
just
a
second
ago
from
the
big
short
a
movie
that
my
wife
and
I
watched
by
the
way
and
interesting
so
I'm,
chairman
of
the
board
of
trustees.
My
only
job
is
to
appoint
the
board
of
directors.
The
board
of
directors
are
responsible
for
operating
the
company.
I
am
self-perpetuating,
along
with
my
other
members,
were
totally
apolitical.
I.
Don't
know
what
the
politics
other
than
I
know
them
personally,
but
there
is
no
political
witness
test.
The
mayor
does
not
appoint
the
board.
I
The
City
Council
does
not
appoint
the
board.
The
board
of
trustees
are
self-perpetuating
and
our
job
is
to
appoint
the
board
of
directors
who
serve
for
one
year
and
can
be
removed
for
no
cause.
The
board
of
trustees
can
only
be
removed
for
cause,
which
would
be
by
a
court
of
competent
jurisdiction.
So
if
we
breached
our
fiduciary
duty,
such
as
diverting
profits
to
some
particular
place
that
we
shouldn't
or
not
returning
the
profits
to
the
inhabitants
of
marion
county,
we
would
be
replaced.
Maybe
that's
happened
some
time
in
the
past.
I
I
don't
know
we're
required
by
law
to
be
inhabitants
of
Indianapolis
and
the
moment
that
we
cease
being
inhabitants
Indianapolis.
We
are
off
the
board
that
instant.
In
other
words,
it
is
folks
who
live
in
the
community
and
are
so
and
are
therefore
trustees
as
well
as
beneficiaries.
You
can
see
the
Zen
diagram
up
there,
that
sort
of
collapses,
the
idea
of
a
private
business
and
local
ownership
into
an
alternate
approach.
That's
what
citizens
Energy
Trust
is,
so
we
are
subject
to
the
open
door
and
public
records
law.
I
The
compensation
of
every
employee
is
publicly
available.
You
could
google
it
today.
I
presume
I
I
have
recently
through
the
local
newspaper,
maintains
the
database
of
them,
because
our
core
business
prior
to
acquiring
the
water
company
was
a
gas
company.
It
means
our
core
competency
is
underground
pipes,
so
think
about
leaks
in
underground
pipes
that
carry
gas.
The
consequences
of
that
are
catastrophic,
so
the
leakage
from
underground
gas
pipes
is
de
minima
and
when
there's
a
problem,
it's
sort
of
like
calling
9-1-1,
they
are
resolved
immediately.
Water
companies
traditionally
have
not
been
managed
that
way.
I
Pittsburgh
has
I
didn't
know
this
a
couple
of
days
ago,
a
50%
loss
in
water,
so
back
to
affordability.
That
means
that
people
are
paying
twice,
that
water
delivered
to
their
house
and
what
it
actually
is
being
used
by
local
citizens.
If
that
were
happening
in
Indianapolis,
the
Board
of
Trustees
would
be
saying
to
the
Board
of
Directors.
What's
going
on,
this
is
a
catastrophic
outcome
and
a
sign
of
gross
inefficiency
in
some
way
that
we
don't
understand
now.
The
root
cause
of
that
is
gas
is
inherently
dangerous.
I
The
next
slide
lays
out
in
some
detail
on
the
lawyer
by
training,
although
I
haven't
practice
law
in
a
long
time,
so
I
couldn't
help
myself
putting
in
the
citations
for
the
folks
in
the
audience.
So
one
of
Google,
the
the
statutory
citations
and
the
case,
the
Todd
case,
which
is
1931.
That's
the
case
that
recognized
the
trust
as
perpetual.
We
view
our
duty
as
owning
the
assets,
not
selling
the
essence.
We
can
only
sell
the
assets
if
it
becomes
impossible
to
perform
our
purpose,
so
that
has
not
happened.
I
If,
for
some
reason,
natural
gas
or
water
became
impossible
to
collect
purify
and
deliver,
then
then
we'd
have
the
opportunity
to
change
the
purpose
of
the
of
the
trust.
The
board
of
trustees
are
paid
fifty
dollars
a
year.
So
there's
nobody
on
the
board
of
trustees,
who's
on
it.
For
money
last
comment,
the
hallmark
of
our
organization
is
being
a
political,
a
political
is
different
than
non
political.
A
political
means
that
politics
do
not
play
a
role
in
our
decisions.
I
So
that
was
a
bit
of
an
aha
moment
for
me,
meaning
we
have
more
customers
to
spread
the
cost
base
over
then
Pittsburgh
has,
and
we
own
some
of
the
utilities
outside
of
the
city
that
are
high
growth
areas,
that
we
can
generate
revenues
for
the,
so
our
portfolio
of
utilities
is
bigger
than
yours,
so
inherently
there'd
be
a
lower
cost
of
delivering
water,
gas,
steam,
chilled
water
and
so
forth,
and
so
on
the
board
governance
structures
on
the
next
page.
This
is
the
confusing
part
and
I'll
stand
down
right.
I
After
all,
this
can
be
a
little
confusing,
even
though
we're
a
public
Charitable
Trusts
we
operate
as
a
department
of
the
city.
It's
just
that
the
city
doesn't
control.
What
we
do
was
aboard
directors
controls
what
we
do,
so
all
the
laws
that
would
pertain
to
a
department
of
the
city
also
pertain
to
us.
It's
just
that
the
actual
governance
and
management
structure
is
independent
of
the
city.
I
The
vision
of
the
founders
of
citizens,
energy
in
1882,
Colonel,
Eli,
Lilly
and
his
colleagues
was
to
have
a
holding
company
for
all
necessary
public
utilities
to
keep
them
out
of
some
of
the
very
things
you
talked
about
before
I'm
speaking
right
now,
to
make
sure
that
the
profit
motive
and
folks
who
are
not
interested
in
the
best
interests
of
the
inhabitants
of
Marion
County,
didn't
have
control
over
essential
utilities.
It
wasn't
until
the
last
several
years.
I
J
I
Investor
owned
utility
in
central
Indiana
and
had
been
there
since
1862
or
1863.
So
it's
an
old
urban
facility,
the
source
of
the
water
is
the
river
that
runs
through
town
and
the
canal
system.
It
was
built
to
transport
merchandise
in
the
1830s
and,
of
course,
the
canal
system
failed
because
of
the
invention
of
the
railroad.
I
So
any
event,
the
water
company
is
an
ancient
institution,
so
we
acquired
the
water
company
a
couple
of
years
ago
and
we
had
to
do
what
I
will
say
much
about
this,
because
my
from
Tulsa
we'll
have
much
more
to
say.
We
found
the
water
company
in
need
of
efficient
management
and
benchmarking
what
it
was
doing,
boarding
how
it
was
actually
performing
seeing
what
the
value
was
that
was
being
returned
to
the
rate
payer
actually
measuring
the
deferred
maintenance.
I
So
we
had
some
idea
what
it
was
gonna
cost
to
get
it
to
a
more
efficient
operating
modality.
We
have
I
think
about
a
15%
water
loss
rate
in
Indianapolis.
That's
too
high
we'd
like
to
be
in
the
mid
to
low
single
digits
and
we're
an
old
system
like
you
are
newer
systems
in
the
suburbs,
of
course,
have
a
much
lower
loss
rate.
We
like
you,
are
concerned
about
lead.
We
have
in
our
employ
the
same
fellow,
the
scientist
from
Virginia
Tech
that
worked
on
the
Flint
Michigan
issue,
so
we're
very
concerned
about
that.
I
B
If
you
just
want
to
stay
where
you
are
right
now
would
like
to
do
for
the
next
20
minutes
is
give
the
panel
an
opportunity
to
ask
some
questions,
a
ban,
whether
it
be
structure.
The
problems
that
were
faced
was
a
recent
acquisition
from
the
city
in
favor
of
the
trust,
which
is
again
a
public
charitable
trust,
but
I
want
to
spend
some
time
to
give
panel
members
the
opportunity
ask
questions
before
we
turn
it
over
as
it's
also
so
any
questions
good
dr.
Cohen.
H
Got
lots
of
questions
it's
really
interesting
and
thank
you
again,
mr.
Evans,
for
going
to
trouble
of
being
here,
it's
very
valuable
to
us,
so
I
I'm
new
to
this,
the
the
structural
issues
that
in
governance,
issues
that
you
put
before
us
and
this
phrase
public
charitable
trust-
is
that
a
universal
phrase
do
we
have
that
in
there.
A
I
H
I
No,
the
board
of
directors
has
divided
itself
to
be
responsible
for
utilities
by
committee
and
the
statute
that
was
contemplated
in
the
original
statute.
That
look
one
of
these
days.
We're
gonna,
run
multiple
utilities
and
so
therefore
we're
gonna
have
to
have
expertise.
These
are
very
complex
enterprises,
so
the
board
has
divided
itself
and
we
oversee
that
to
make
sure,
there's
a
board.
There's
an
Executive
Committee
of
the
board
for
water
and
the
executive
committee
of
the
board
for
gas
for
chilled
water
for
steam.
I
The
meetings
as
I
said,
are
in
public
and
so
they're
very
organized
about
each
of
these
areas.
So
at
the
last
meeting,
for
instance,
the
main
topic
was
and
you'll
hear
this
from
Tulsa
was
about
efficiencies.
Are
we
really
generating
the
officiants
that
we
need
across?
All
of
these
you
took
so
I'll
give
an
example:
the
steam
and
chilled
water
use
the
same
pipes.
They
burn
garbage
to
make
the
steam,
so
in
the
winter
we
make
steam
and
the
Sun
of
summer
we
make
chilled
water.
I
That's
a
very
old
system
and
you've
got
that
here
in
Philadelphia
with
the
downtown
thermal
heating,
the
system
it
has
a
few
customers
but
they're
big
customers.
So
that's
a
interesting
business
and
requires
its
own
focus,
the
gas
until
remember
it
was
$13
a
therm.
Now
it's
two
or
three
dollars
a
therm
and
we
were
all
worried
running
out.
We'd
have
enough
gas.
Now
it's
displaced
oil,
no
one
predicted
that
so
have
we
used
to
store
underground
to
make
sure
we
had
enough
for
winter.
I
So
a
big
cost
was
underground
storage
in
southern
Indiana
and
big
old
mines,
so
that
need
went
away
and
we
were
able
to
move
quickly
on
that.
We
had
a
liquefied
natural
gas
and
those
big
storage.
Things
were
the
roofs
go
up
and
down
up
and
down,
so
the
board
divided
itself
into
committees
that
could
develop
the
necessary,
lay
expertise
to
oversee
it
and
they
come
together,
but
the
the.
H
I
Have
the
board
right?
Yes,
the
board
directors
can
organize
itself
in
any
way
that
they
deem
appropriate,
and
then
we
we
measure
their
outcomes.
Have
they
succeeded
in
keeping
rates
as
low
as
they
can
be?
Have
they
succeeded
in
running
in
the
gas,
in
particular
a
safe
system,
because
we
do
have
explosions?
Your
things
do
happen.
Is
the
CSO
being
mitigated
consistent
with
the
EPA
consent
decree?
Is
it
I
didn't
mention
this
I
live
within
sight
of
the
river
in
which
the
CSO
flows,
it's
in
my
neighborhood
I
have
CSO
in
our
home.
H
I
We
have
to
account
for
the
regulated
utilities
separately.
There
are
shared
services
between
all
of
them,
so
the
efficiency
we
own,
the
shared
services,
like
accounts,
receivable
legal
pipes
in
the
ground
stuff,
but
they
do
have
to
be
accounted
for
separately,
so
the
ratepayers
in
Westfield
Indiana
aren't
paying
the
cost
of
gas
in
Indianapolis,
Indiana
or
or
water,
or
vice
versa,
the
the
commodity
cost.
They
have
to
be
separated
by
Indiana
state
law.
I
Our
biggest
concern
right
now
lots
of
concerns,
but
a
major
concern
right
now
is
because
we
own
all
the
utilities
except
electric
and
cable
is
share
of
wallet.
What
does
this
actually
call
people
altogether?
How
much
of
their
home
income
are
we
taking
from
them?
And
how
can
we
spread
out
the
cost
in
a
way
that
minimizes
it
to
those
that
are
least
able
to
pay?
I
This
is
going
to
take
statutory
changes
because
the
law
I
don't
know
about
Pennsylvania,
but
I
wouldn't
be
surprised
that
the
law
in
Pennsylvania
is
you
can
only
have
one
rate
class
for
residential.
You
can't
have
ten
or
fifteen,
so
we
tried,
in
our
last
rate
case
to
lower
the
rates
for
poorer
neighborhoods
and
increase
the
rate
for
richer
neighborhoods
in
our
Indiana
utility.
Regulatory
Commission
denied
that
request,
so
we're
gonna
have
to
come
up
with
a
statutory
scheme.
To
do
the
same
thing.
Thank
you
other.
L
The
sake
of
argument,
you
know
we
could
accept
that
this
charitable
trust
is
a
kind
of
an
entity
that
could
work.
Okay,
my
concern
with
kind
of
where
we
are
is:
we
have
800
million
in
debt.
We
have
poor
quality
water.
If
you
listen
to
the
community,
we
have
poor
record-keeping,
we're
keeping
records
on
three
by
five
cards
on
maintenance,
we're
losing
50%
of
our
water.
We've
got
issues
with
employees,
I'm
not
sure
I
would
want
to
turn
over
a
new
plan
to
our
current
organization.
Regardless
you
change
the
monitor,
operates
under
you
know.
L
How
do
we
get
to?
You
know
a
stronger
enterprise?
How
do
we
improve
all
of
our
systems?
How
do
we
change
our
processes
or
and
what
kind
of
management
can
we
attract
to
do
that,
because
clearly
we
cannot.
If
we
all
agree
what
the
plan
is
going
to
be.
We
can't
deliver
a
two
billion
dollar
plant
to
our
current
entity
and
expect
to
get
a
different
result.
D
I
Stood
in
the
well
of
rooms
like
this
on
behalf
of
the
trust,
the
vision
of
the
trust
is
to
return
value
to
the
inhabitants
Mary
period,
so
that
directs
the
efforts
everything
is
directed
at
that
thing,
so
that
unifies
the
workforce
to
have
a
common
vision.
It's
not
horse.
You
know
what
it's
was,
so
the
question
always
is
before
we
do
something.
How
is
that
a
value
to
mrs.
Jones?
I
So
that's
number
one
number
two:
we
had
a
leg
up
in
acquiring
the
water
company,
because
the
core
business
of
the
trust
was
underground
pipes
company.
So
that's
what
you're
really
asking
us?
How
do
you
suddenly
get
all
kinds
of
expertise
you
have
to
pay
for
it,
so
we
do
not
pay
government
salaries.
Our
market
basket
of
salary
comparators
for
everybody
is
a
mixed
basket.
In
other
words,
we
have
investor-owned
and
municipal
x'
and
proprietary.
I
That
might
be
private
lot
of
subdivisions,
its
proprietary,
it's
owned
by
a
private
little
subdivision,
and
we
assiduously
you'll,
hear
this
from
Tulsa
measure
everything
red,
yellow,
green.
How
we,
how
we
doing
so
I,
would
strongly
encourage
you
whenever
you
take
whatever
the
next
step.
Is
that
you
make
sure
that
across
the
transom
is
the
expertise.
K
I
Before
we
did
the
acquisition
Tulsa
did.
The
same
thing
did
a
pretty
thorough
due
diligence.
The
due
diligence
was
mostly
accurate,
but
it
wasn't
a
hundred
percent
accurate.
We
found
once
we
became
operating
more
problems
than
had
been
found
in
the
due
diligence
period,
but
it
wasn't
a
holy
cow
sort
of
thing.
So
that's
that's
the
shortest
answer.
I
can
give
it.
That's
that's
another!
That's
another
meeting,
and
obviously
that
was
one
of
the
primary
interests
of
the
mayor
of
Annapolis
and
the
City
Council
and
the
cdc's
which
I
take
it.
I
It's
represented
in
this
room
at
differently
the
Community
Development
Corporation's,
the
neighborhood.
So
we
rely
heavily
on
the
neighborhoods
and
Reverend
pol
and
on
the
faith
community,
so
you'll
see
on
our
board
of
trustees.
Here
on
one
of
these
slides,
we
have
a
couple
of
pastors
on
the
board
of
trustees
because
they
actually
happen
to
be
closest
to
the
neighborhood's
that
we
serve
and
have
been
Brian.
Williams
you'll
see
him
on
it.
I
He
was
the
pastor
of
a
mathur's
Church
in
the
middle
of
one
of
our
neighborhoods
he's
now
a
program
officer
Lillian
helping
people
manage
just
these
things
in
CDC's,
so
we
involve
the
neighborhoods,
and
that
was
our
compromise.
When
senator
lugar
was
mayor
of
Indianapolis,
the
neighborhood
associations
became
a
necessary
stop
point
to
to
evaluate
any
effort
to
take
a
core
municipal
service
and
do
it
in
a
different
way
and
I.
Think
we've
been
successful
at
that
in
Indianapolis,
anyway.
Sure
good.
M
Afternoon,
thank
you
for
your
time
here.
I
had
a
question
getting
back
to
this
structure.
You
had
indicated
earlier
that
the
board
of
directors
essentially
has
operations,
oversight
and
related
to
management
and
that
the
Board
of
Trustees
essentially
oversees
that
board
of
directors
in
terms
of
appointments
and
such
that
are
made
and
that
they
do
more
of
the
measurement
in
terms
of
the
dashboard
and
goals
that
you
all
create.
What
type
of
decision-making
comes
from
the
board
of
trustees?
I
A
I
What
the
goals
are,
what
the
current
state
is
and
what
the
desire
state
is
it's
there,
and
then
we
measure
how
far
we
are
in
the
journey
from
whatever
our
current
state
is
to
our
desired
state,
and
then
we
measure
the
board's.
Well,
then
I
will
reappoint
the
board
on
how
far
they
are
on
that
journey.
I
So
we
evaluate
their
performance
in
the
last
year,
so
I
can't
think
of
a
good
analogy.
I
don't
want
to
use
shareholders
voting
in
an
annual
meeting,
because
this
is
an
ongoing
evaluation
and
our
meeting
our
statutory
meeting
is
annually
but
well
what
the
trustees
are
interested
in
is.
Are
we
discharging
our
fiduciary
duty
through
leading
the
purposes
of
the
trust
purposes
of
the
trust
and
return
value
to
the
inhabitants
of
Marion
County?
I
So
how
do
we
measure
that
we
measure
that,
by
rates
safety,
quality,
customer
satisfaction
which
went
down
after
we
acquired
the
water
company?
For
the
reasons
you
just
described,
we
had
different
IT
systems,
so
a
customer
would
call
and
what
would
have
and
they
get
dropped
today,
get
the
wrong
data.
So
we
went
through
a
blip
trying
to
get
legacy
systems
to
talk
to
each
other.
On
the
service
side,
we
used
to
have
a
big
customer
service
center
downtown
most
of
our
customers.
I
90%
don't
live
downtown,
so
we
had
to
figure
out
a
way
to
disperse
that
the
meter
readers,
basically
our
customer
service
people
they're
actually
going
to
people's
homes
and
they
can
see
what's
going
on
in
those
home.
So
it's
narrow
we're
overseeing
the
work
of
the
directors
who
remember
they
just
serve
a
one-year
term
and
they're
at
will.
We
don't
have
a
reason.
We
don't
have
to
have
a
reason
to
get
rid.
The
Trustees
are
not
at
will.
I
We
can
only
be
removed
for
cause,
so
we,
if
there's
some
debate,
we
could
make
a
harder
decision.
We
could
say
we
want
the
company
to
spend
this
much
of
its
resources
in
this
particular
area,
but
we've
not
had
that
that
issue,
so
I
go
to
more
I,
go
to
some
of
the
Board
of
Directors
meetings.
I
read
all
of
the
material
that
the
board
directors
gets,
but
mostly
I'm
an
outcomes
guy.
So
maybe
the
principal's
office.
I
I
N
I
We
can
make
hard
decisions.
We
have
a
coke
plant
used
to
make
coking
coal.
You
got
lots
of
coke
plants
around
here
because
of
the
steel
plants,
coke
plants,
byproducts
or
benzene
and
hydrochloric
acid
right.
Professor
there's
nothing
good
about
the
byproducts
of
them,
so
we
had
to
make
decisions
till
we
closed
the
coke
plant
and
we
do
we
put
some
of
our
resources
into
remediation
that
might
go
into
rates
rate
reduction.
Those
are
hard
decisions.
I
There's
a
neighborhood
around
the
coke
plant
that
we
care
a
lot
about
coke
plants
been
there
since
1906,
so
we've
got
Indiana's
a
little
like
western
Pennsylvania.
There
are
lots
of
Superfund
sites,
so
there's
a
high
level
of
sophistication
with
dealing
with
these
things,
but
I
think
we've
encouraged
the
board
to
come
up
with
these
metrics
and
tools.
Workforce
issues
are
your
employees
satisfy
your
customer
satisfied
and
then
we
just
monitor
those
things
so
that
we,
so
we
have
some
evidence
that
the
benefits
being
returned
to
that.
So.
N
N
I
For
years
and
years
will
use
Baldrige
as
our
checklist,
so
especially
the
paragraphs
on
leadership
and
we
in
the
later
years,
scored
very
high
on
that
and
I
personally
thought.
There
was
a
correlation
between
knowledge
transfer
scoring
on
the
leadership,
quadrant
and
the
outcomes
with
respect
to
efficiency
that
it
wasn't
a
coincidence
that
you
could
describe
how
knowledge
was
transferred.
So
let's
talk
about
the
water
company
and
the
gas
company,
so
I
say
we're
an
underground
pipe
company.
How
is
that
knowledge
transferred,
so
that
would
be
process
improvement?
How
is
the
knowledge.
I
So
we
do
have
a
continual
improvement
process.
It's
maturing
utilities
in
general
are
behind
the
private
sector
and
some
governmental
Sakura's.
You
know,
bulrush
is
now
given
to
many
501
C,
3s
and
government
units
and
the
hospital
they
used
to
run
is
a
501
C
3,
their
owns
public
buildings,
and
so
we've
used
a
mix
of
the
two
we
did
Baldrige
without
being
judged.
We
did
Baldrige
internally,
then
hired
de-facto
judges,
rather
than
go
for
the
award
and
then
use
process
improvement
as
the
tactic
to
create
the.
I
Were
then
transfer
someplace
else
and
then
replicate
it,
so
a
process
improve
but
think
about
supply
chain.
You
know
that's
kind
of
low
hanging
fruit
in
some
instances.
In
some
instances
it's
not,
but
if
you're
manufacturing,
coking
coal
or
transporting
an
inherently
dangerous
product
or
purifying
water
to
put
it
in
somebody's
body,
then
the
level
of
verification
has
to
be
high.
I
H
I
That's
a
good
question:
we
view
the
City
Council
in
the
mayor's
office
as
key
stakeholders
in
our
rubric
of
how
were
organized.
So
the
mayor
has
a
hotline.
I
presume
the
mayor
of
Pittsburgh.
Has
a
hotline,
and
so
lots
of
people
call
the
hotline
when
their
water
smells
this
time
of
year
and
the
hot
time
you
know
algae
froze
in
the
water.
They
put
various
things
in
it
to
kill
it,
and
so
your
water
may
come
out
of
the
tap
and
smell.
So
the
mayor
I
get
a
bunch
of
calls
low
pressure
and
so
I.
I
If
my
cell
phone
weren't
dead
I'd
show
it
to
you
right
now,
but
I
get
emails
sometimes
all
day
long
about
the
communications
back,
you
must
get
them
to
back
and
forth
between
the
mayor's
office
and
the
utility.
Are
we
responding
fast
enough
to
this
or
that
with
the
water
company?
Its
main
breaks
in
the
hot
summer
ends
sometimes
in
the
winter,
but
in
the
hot
summer?
And
then
two
years
ago,
I
don't
know
about
Pittsburgh,
we
had
a
drought,
so
we
had
to
ask
for
voluntary
rationing,
which
was
controversial.
I
That
is
some
elected
office
holders.
Water
rationing
and
some
elected
officers
didn't
want
rationing,
voluntary
rationing
and
some
didn't
want
it.
We
made
a
voluntary
and
most
citizens
comply.
We
can
measure
compliance
pretty
much
by
micro
neighborhood,
so
we
knew
and
there
was
pretty
much
community-wide
compliance,
but
there
are
adjacent
communities
that
didn't
have
a
shortage,
so
their
yards
were
green
and
this
caused
cognitive
dissonance
at
various
levels
of
government
so,
as
a
result,
we're
building
an
additional
reservoir
near
Indianapolis
in
an
old
quarry
which
is
much
more
efficient
than
building
a
new
reservoir.
I
When
we
say
stakeholder
we
mean
someone
who
under
Baldrige
would
actually
be
a
core
customer,
although
we
call
our
customers,
the
inhabitants
of
Marion
County,
but
a
stakeholder
is
someone
to
whom
we
believe
we
have
a
duty
of
satisfying.
So
if
the
mayor's
hotline
calls
us
and
says
we
got
a
complaint
at
71st
and
Meridian
Street,
the
main
dragon
town
that
is
taken
pretty
seriously
and.
I
O
P
P
Having
that
mission
statement
that
you've
been
very
clear
at
getting
through
this
trust
structure,
so
I
mean
I,
guess
I,
maybe
I'm
simplifying
it,
but
if
the
PSA
board
decided
that
they're,
you
know
their
number
one
goal
was
the
health
and
value
you
know
the
health
of
the
residents
and
the
high
quality
water
other
than
changing
the
structure
we
get
to
the
same
place.
The
advantage
is
that
the
trust
is
governed
by
trust
law,
and
that
gives
you
a
certain
advantage
that
we
wouldn't
have
in
a
public
utility
I
can't.
I
P
I
You're
doing
the
future
needs
to
be
a
different
construct.
That's
evidence
based
evidence
based
not
your
opinion.
Evidence
based
and
so
I
think
what
you're
doing
today
is
trying
to
create
the
evidence
and
then
he'll,
be
the
judge
of
whether
or
not
a
change
and
governance
model
would
make
a
difference,
but.
P
We
probably,
as
I
said,
probably
wouldn't
be
in
this
position.
If
the
PD
was
a
board
had
had
a
mission,
like
your
trust,
work
from
1880,
whatever
right,
1882
I
mean
you've
been
lucky
that
you've
had
this
great
board.
That
has
had
this.
This
ability
to
kind
of
do
this,
and
you
said
the
trust
law,
helped
you,
because
it's
been
governed
by
trust
law,
which
means
your
only
true
to
your
mission
and
that's
it
right.
There's
no
financial!
There's!
No,
as
you
said,
then
you
give
it
to
the
board
the
the.
A
I
It's
not
a
501c3,
it's
a
governmental
entity,
so
we
have
the
transparency
of
a
government
entity,
but
we
don't
file
a
990
but
everybody's
salaries,
l/r
and
because
we're
regulated
by
the
iur
see
you
can
get
on
this
afternoon
or
read
the
pre-filed
testimony
of
the
water
case
and
there
have
been
rape
cases
in
the
last
three
or
four
years.
That
would
tell
you
away-
and
you
can
be
your
own
judge-
I-
always
get
on
and
read
what
the
minimum
charges
are
a
place
I'm
at
to
just
see
what
it
is.
P
So
for
us,
the
CEO
of
the
citizens,
Energy
Group,
would
become
the
CEO
of
them,
that's
the
PDSA,
and
then
we
would
have
a
board
of
directors
of
the
PW
say
like
we
have
now,
and
the
only
thing
we're
adding
here
is
a
board
of
trustees
of
this
trust
that
would
have
this
clear
mission,
health
of
our
citizens
and
giving
value
back
to
the
citizens
via
the
water
and
source.
That's.
I
A
I
And
it
actually
worked
this
morning,
there's
six
of
us
on
the
plane
we
could
play
on
with
health
seven,
but
it
was.
It
was
great,
so
utilities
are
complicated
businesses
there's
nothing
simple
about
it.
They
involve
international
trade,
they
involve
regulations
that
are
related
to
the
byproducts
of
running
a
utility.
They
deal
with
public
health
issues.
We've
talked
about
the
lead.
I
It
should
it's
a
very
serious
issue,
so
you
have
this
domains
in
my
opinion,
so
the
domain
of
Public
Health,
the
domain
of
a
public
utility
and
the
domain
of
Public
Safety
all
come
together
in
as
and
dire
in.
My
in
my
mind
and
I
view
myself
as
the
trustee
as
responsible
for
where
they
all
overlap.
I
couldn't
do
that.
If
I
only
did
this
for
a
year
and
they
got
replaced
so
the
expertise
is
there
now
the
risk
to
that.
Is
you
get
somebody
in
that?
I
P
I
Board
we
hold
the
board
accountable
or
the
outcome,
so
sometimes
our
board
meetings
that
I
wouldn't
say,
they're
uncomfortable
but
they're
pointed
you
know,
explain
to
us
this,
like
the
question
about
efficiency.
So
what
exactly
do
you
mean?
Do
you
mean
Lean,
Six
Sigma,
because
we're
not
the
Subaru
plan
laugh
yet.
Do
you
mean
Eli
Lilly
with
Pharma,
where
you're
making
human
life
things
with
me?
What
do
you
do?
You
mean
Dow,
AgroSciences
they're,
all
right
there
within
walking
distance,
my
view
and
no
we
mean
something
else.
I
I
In
fact,
I
just
met
with
someone
from
Notre
Dame
University,
and
this
is
her
area
of
expertise
and
I
said
well.
This
is
a
bigger
problem
than
the
water
pipes
we
know
of
those.
So
how
do
we
deal
with
this?
If
this
is
true,
she
said:
we've
only
done
one
census
tract,
so
you
can
see.
That's
the
public
health
issue.
I
happen
also
to
be
the
vice
chairman
of
the
states
of
Indiana's
opioid
drug
abuse
Commission.
So
what
you
see
is
how
all
this
starts
to
overlap
and
focus
on
how
and
where
people
live.
I
O
O
K
I
Streetlights
in
Detroit
were
off
until
recently,
because
you
can't
light
a
whole
street.
If
you
only
have
one
person
who
needs
it.
So
that's
granted
investment
I,
don't
know
what
pittsburgh's
amount
of
stranded
investments,
but
we
worry
about
any
Annapolis
as
certain
neighborhoods
depopulate
and
certain
neighborhoods
repopulate
us
there.
So
there's
a
gentrification
is
not
the
right
word,
but
people
moving
into
certain
our
Center
Township,
which
is
the
actual
core
of
the
city,
has
lost
in
my
lifetime.
I
Six
figures
of
population-
and
it's
just
now
going
back
the
other
direction,
so
we've
had
to
mean
so
how
much
of
that
is
causing
inefficiencies
right
that
people
are
paying
for
a
few
blocks
away.
So
this
is
a
pretty
sophisticated
analysis
and
we
expect
the
Board
of
Directors
to
be
aware
of
that
and
to
plan
accordingly
time.
M
I
Company
there
are
outsource
pipe
companies
because
it's
bigger
than
they
could
maintain
on
their
own,
but
it's
been
the
same
one
for
40
or
50
years,
so
there
are
so,
but
the
core
services-
Human
Resources
supply
chain
financial
services-
accounts,
receivable
collection,
customer
service
are
are
in
internal
because
part
of
it
is
the
customer
culture.
They
don't
think
they
can
outsource
so
and
I
agree
with
that.
I
So
I
spent
one
day
as
a
young
lawyer
working
the
fountains
and
what
I
learned
was
the
ladies
who
answer
the
phones
or
social
workers,
basically
they're
solving
problems,
especially
for
the
gas
company.
So
your
gas
has
been
cut
off
and
it's
March
16th
I
may
be
wrong.
The
law
doesn't
permit
us
to
cut
the
gas
off
before
March
16th
any
place
wintertime.
You
can't
cut
the
gas
off,
but
after
that
you
can
so
the
people
who
are
actually
working
answering
the
phones
they're
dealing
with
real-life
problems,
so
I
became
so
fascinated
by
it.
I
I
spent
a
day
with
a
bill
call
on
the
road
going
from
house
to
house.
It
was
for
me
a
middle-class
guy.
It
was
super
eye-opening,
so
we
need
counter
measures
to
help
people
deal
with
the
reality
of
an
essential
public
service
that
they
need,
whether
they
have
the
money
that
day
or
not.
So
these
house
fires
that
occur
are
usually
overloaded.
I
Circuits
well,
I,
shouldn't,
say,
usually
a
frequently
overloaded
circuits,
where
there's
been
some
issue
with
respect
to
paying
some
other
utility
bill,
and
we
go
back
and
forth
one
that
we
should
send
people
a
bill
for
everything
together,
then
it
looks
real,
big
or
divided
up
into
water,
sewer
and
so
forth.
Then
it
it's
the
same
bill.
It
just
doesn't
look
as
big.
So
how
do
we
act
so
we
provide
a
lot
of
customer
service
and
there's
a
warm
heart.
I
Warm
hearth,
warm
heart
fund
where
we
pay
people,
that's
where
my
50
bucks
a
year
goes
into
that
Lilly
Endowment
gives
money
to
it.
The
Township
Trustees
do,
and
so
what
I've
noticed
over
the
course
of
my
career
with
citizens
is
the
affordability
index
has
generally
gone
down,
so
you
got
to
figure
out
a
way
to
deal
with
the
fact.
The
good
news
is,
the
cost
of
gas
has
gone
down
dramatically
the
cost
of
delivering
gas.
It's
not
because
the
pipes
have
not
gone
down
and
their
cost.
B
Q
Q
I
Yeah
good
question:
self-perpetuating
means
just
that
the
plain
language
the
the
Board
of
Trustees
is
self-perpetuating.
We
nominate
ourselves
to
succeed
ourselves,
we're
limited
by
age.
I.
Think
it's
70
is
the
age
limit
and
if
we
don't
live
in
Marion
County
Indiana,
which
is
Indianapolis,
we
cannot
serve
so
we've
had
that
happen
or
folks
have
retired
and
they've
moved
out
as
to
and
I
I
gotta,
say,
I.
Think.
If
you
look
at
the
trustees,
you'll
see
some
diversity
and
the
trustees
I've
personally
worked
very
hard
at
that.
I
I
referred
to
a
couple
of
them
by
by
name
and
they
live
in
all
different
parts
of
the
city
as
to
the
board
of
directors,
we'd
like
to
have
more
diversity,
and
we
do
have
diversity
in
it,
but
well
we
create
a
matrix
and
the
matrix
across
the
top.
Is
the
skills
and
the
things
we're
looking
for
and
down
the
left-hand
column
is
the
incumbents.
So
if
we
lose
somebody
and
we're
about
to
lose
one
member
who's
on
it,
she
lives
in
a
certain
part
of
the
city.
I
She's,
an
african-american
and
she's
been
on
the
board
a
long
time
so
she's
a
huge
loss
so
to
replace
her
is
gonna,
be
tough
but
we're
looking
for
someone
like
her.
That
represents
the
city
and
represents
the
neighbors.
She
ran
a
safety
net
Hospital
on
the
near
east
side
of
town.
I
know
something
about
that.
So
she
knows
she
deals
with
poverty
and
access
to
essential
services
Anita.
B
So,
just
to
follow
up
on
I
appreciate
your
time
and
great
questions.
It
seems
to
me
that
some
of
the
benefits
of
a
structure
like
this
it
could
be
relating
to
the
continuity
leadership
I
mean
in
effect,
the
trust
structure
is
insulated
from
from
the
public.
Yes,
you're,
accountable
to
a
legal
instrument
and
ultimately
by
a
judge
which
can
be
a
good
thing
in
terms
of
continuity
when
mayor's
change,
they
change
over
board.
Some
some
of
those
decisions
are
made
politically
I
know.
When
we
took
office.
B
There
were
a
lot
of
folks
who
worked
at
PWSA,
we're
not
there
by
skill,
but
they
were
for
political
purposes,
and
that
was
very
clear.
We
try
to
clean
that
up,
but
that
also
can
be
a
con.
So,
for
example,
when
we
took
office
there
was
a
conversation
around
the
CSO,
what
whether
or
not
to
pursue,
which
had
been
a
great
infrastructure
approach.
So
the
and
very
through
a
lot
of
collaboration
of
folks
in
this
room.
B
You
know
we
staked
a
hard
position
that
we
felt
that
the
response
to
the
federal
consent
decree
could
be
accomplished
through
a
combination
of
green
infrastructure,
which
not
only
was
good
for
the
environment,
but
also
could
leverage
that
same
level
of
investment
in
communities
where
private
investment
that
happened
there
by
leveraging
and
building
out
the
neighborhood
in
an
equitable
manner.
That's
a
gray
area
that
it
seems
to
me
the
closer
you
are
to
the
public
through
an
accountable
elected
official,
really
would
drive
a
decision
at
an
authority
like
PWSA.
B
That
necessarily
wouldn't
be
reflected
in
a
trust
structure
where
how
do
you
interpret
that
decision
when
you're
bound
by
a
trust
document
so
help
me
understand?
Is
there?
Is
there
an
analog
example?
Where
truly
you
had
a
gray
area
policy
decision
that
really
didn't
have
to
do
with?
You
know
just
delivering
safe
water,
but
it
was
a
more
broadly
based
policy
decision
that
what
would
we
be
giving
up
that
flexibility
by
pursuing
a
trust
structure,
for
example,
yeah.
I
The
only
issue
that
I
can
pull
off
the
top
of
my
head
is
when
we
decided
to
close
the
coke
plant,
that's
the
equivalent
of
selling
it
and
it
was
a
trust
asset.
So
we
were
unsure.
Well,
not
we
had
the
power
because
we
couldn't
use
the
business
judgment
rule
we
use
the
the
so
there's
case
law
on
and
we
decided
to
close
the
figuring.
It
was
no
risk,
but
who
would
object
to
that?
I
can't
sir,
with
our
examples.
Well,
we've
we've
got
new
grayer
and
we
haven't
recognized.
B
C
L
K
This
is
Fred
brown.
My
question
was
similar,
but
I
want
to
know
in
the
matrix.
Would
it
also
taken
to
account
the
social
economic
strata
in
addition
to
diversity?
I
think.
The
other
thing
that's
needed
in
this
new
structure
is
to
assure
that
there's
people
on
the
board
that
represents
some
of
the
the
stakeholders
that
have
a
difficult
time
dealing
with
pay
increases
and
that
we
increase
there
are
two
around
the
causation
with
that,
and
so
that
there
is
a
direct
correlation
with
them,
having
a
deeper
understanding
that
gets
translated
across
different
social
economic
strata.
C
There
are
two
large
issues
facing
Pittsburgh
citizens
of
Pittsburgh
with
regard
to
the
water
we've
covered,
one
of
them
we
haven't
caught,
you
covered
the
other.
The
first
one
is
the
quality
of
water.
The
second
is
the
cost
of
water
rate.
The
citizens
Energy
Group,
is
regulated
by
the
Public
Utility
Commission,
the
same
entity,
Indiana
that
regulates
investor
owned
utilities
and
their
ratemaking
methodology
is
identical
to
that
which
used
is
used
for
citizens
energy.
Can
you
comment
about
what
that
impact?
C
I
Well,
if
you,
the
I,
you
are
see,
is
a
stakeholder
like
we
view
the
mayor's
office
and
the
council,
so
constant
interaction
with
them
is
important.
There's
an
office
in
the
IOR
C
called
the
oh,
you
CC
the
office
of
utility
consumer
counselor,
so
they
are
always
involved
in
each
rate
case.
So
there's
a
give-and-take.
I
They
represent
the
consumer
and
rate
cases
end
up
in
the
final
analysis,
either
being
negotiated
or
the
Commission
you
file,
a
consent
decree
or
the
Commission
makes
a
decision
between
the
position
of
the
Oh
UCC
in
the
position
of
whoever
the
petitioner
are.
We
we
have
not
had
what
I
would
consider
to
be
difficulty
in
that
regard,
but.
I
I
C
B
R
Believe
some
of
your
questions
as
to
how
do
you
do
improvement
and
I
enjoyed
talking
about
the
accomplishments?
We
believe
we've
made
in
the
last
five
years,
so
just
as
an
orientation
to
our
system.
We
have
about
400,000
plus
citizens
in
the
Tulsa
area
and
we
have
600,000
plus
residents.
We
have
three
water
sources:
two
water
treatment
plants
about
130,
130
mm
customer
accounts,
2,300
miles
of
pipe,
and
we
pump
about
105
million
gallons
of
water.
R
With
the
situation
we
found
ourselves
in
in
2011
and
12
with
a
new
mayor,
a
mayor
very
focused
on
small
government
and
a
mayor
very
interested
in
solving
an
issue
related
to
reduction
in
overall
City
general
revenue
due
to
a
diminishing
sales
tax
due
the
economic
considerations
at
the
time,
and
as
a
result
of
that,
he
commissioned
a
study
by
KPMG
and
that
KPMG
did
what
we
from
the
Authority
perspective.
And
we
are
a
seven
member
authority,
including
the
mayor.
R
R
During
that
time
period,
we'd
been
in
during
about
ten
years
of
no
geo
bond
elections
to
support
infrastructure
investment.
We
were
our
debt
on
particular
ways.
Waterside
was
increasing
and
we
had
overall,
as
I
mentioned
earlier,
to
depleted
general
revenues
sources
in
general
terms,
as
citizens
of
Tulsa
and
as
individuals
responsible
for
the
management
of
the
authority.
R
We
believe
strongly
that
privatization
was
not
the
right
alternative
for
the
city
of
Tulsa,
but
we
didn't
have
the
information
or
the
analysis
to
support
that
general
perspective
of
the
authority,
and
we
decided
at
that
point
that
we
would
undertake
a
study
what
we
call
the
comprehensive
assessment
to
analyze.
Indeed,
what
would
be
the
value
or
non
value
of
privatizing,
the
citizens,
public
water
and
wastewater
treatment,
services
and
infrastructure?
R
So
from
our
viewpoint,
we
were
dealing
with
public
assets
that
had
been
funded
by
the
public
and
that
that
was
a
level
of
value
that
superseded
many
considerations.
We
were
challenged
by
the
idea
of
privatizing
or
selling
those
assets
and
experiencing
what
we
believe.
Many
cities
across
the
country
had
also
experienced
which
was
I'm
having
to
buy
back
their
own
assets,
something
that
we
found
unfathomable.
R
R
That
overall
assessment
revealed
what,
in
general
terms,
you
probably
in
your
current
situation,
would
consider
to
be
some
strong
advantages.
We
had
a
loyal
and
experienced
workforce
that
in
general,
was
not
disgruntled.
We
had
no
fat
in
the
system,
but
we
did
have
a
challenging
debt
ratio
and
we
had
no
in
place
system
for
adequately
assessing
the
condition
of
our
assets
and
its
value.
We
found
ourselves
facing
support
services
which
were
expensive
and
higher
percentage
of
budget
than
other
systems.
R
And
finally,
there
was
a
general
lack
of
understanding
of
what
systems
we
were
paying
for
shared
services.
We
are
paying
for
from
the
city
of
tulsa
all
of
those
issues.
We
believe
needed
to
be
addressed
in
this
overall
assessment.
Once
this
assessment
was
complete,
we
came
to
the
conclusion
that
the
margin
of
profit
that
a
privatization
solution
would
provide
was
really
in
an
analysis
of
risk,
so
they
would
still
have
to
have
a
employee
base.
They
would
still
have
to
to
manage
large
infrastructure
system
which
in
this
case,
was
under
maintained
or
not
perfectly
reliable.
R
What
was
the
margin
that
would
make
the
difference
in
the
private
enterprise
side,
and
we
decided
that
the
margin
of
risk
was
with
the
margin
we
could
operate
in
to
be
successful.
How
would
we
be
able
to
take
a
fairly
conservative
system
bent
on
replacing
things
when
they
needed
to
be
replaced,
bent
on
reacting
to
problem
areas
versus
planning
and
and
proactively?
Assessing
our
system
would
give
us
an
opportunity
to
work
in
that
margin
of
risk
and
thereby
achieve
some
savings
for
the
system.
R
The
technical
fixes
that
we
employed
over
a
five-year
period
following
the
assessment
that
were
under
the
purview
of
the
utility
enterprise
initiative,
we
implemented
a
computerized
maintenance
management
system,
an
asset
management
information
system
across
utility.
In
other
words,
what
was
the
current
condition
of
our
assets
and
what
needed
to
be
fixed
first
and
what
was
the
business
case
scenario
on
a
capital
project
by
capital
project
for
actually
creating
that
fix
and
investing
in
that
capital
project
and
that
margin
of
risk?
We
assessed
a
value
to
that
risk.
So
what
are
the
health
impact?
R
What
are
the
cost
impact?
What
are
the
stakeholder
impacts
for
each
of
those
capital
projects
and
we
originally
assessed
50
different
capital
projects
to
test
our
business
case
scenario,
and
we
found
that
it
held
up
well,
and
so
then
we
have
gone
about
implementing
that
business
case
scenario
for
capital
improvement
across
our
entire
system.
R
We
had
developed
an
asset
management
policy
and
framework
within
that
work.
We
identified
software
that
we
needed
in
our
system
to
catalog
maintenance
and
repairs.
We
invested
in
the
installation
and
the
training
of
that
system.
So
there
are
members
of
our
authority
who
believed
software
isn't
enough.
It
requires
training,
your
employees
to
use
it
adequately
and
also
identifying
the
business
processes
to
be
supported
by
that
technology,
so
that
that
technology
actually
is
a
true
fix,
rather
than
a
complication
for
the
business
process.
We
identified
software
to
feed,
keep
important
performance
data.
R
We
developed
a
strategic
plan
which
the
staff
today
will
tell
you
was
a
key
factor
in
their
estimation
of
our
ability
to
achieve
a
proven.
Over
five
years,
the
authority
actually
identified
its
own
strategic
plan
and
then
created
business
processes
to
support
that
plan
and
then
finally,
we
began
work
on
service
level
agreements
I
mentioned
earlier.
R
We
meet
every
other
week,
we'll
be
able
to
look
at
progress
against
those
performance
metrics,
and
we
are
also
right
now
in
the
process
of
achieving
ISO,
55,000
and
1
certification
requirements.
We
will
make
a
decision
toward
the
end
of
that
implementation
as
to
whether
we
can
truly
want
to
achieve
that
certification,
but
we
believe
from
a
staff
perspective
from
a
public
perspective.
R
We
building
credibility
and
and
confidence
in
our
system
by
being
able
to
compare
ourselves
to
an
ISO,
55,000
process
and
then,
finally,
to
sort
of
demonstrate
the
buy-in
that
we've
received
the
employee
support
for
our
remedies.
We
are
also
taking
those
same
systems
and
we're
deploying
them
now
helping
to
deploy
them
throughout
the
city,
so,
in
other
words,
the
asset
management
piece.
R
The
information,
that's
at
the
hand
of
the
people
who
are
actually
making
the
repairs,
the
reporting
that
can
be
provided
the
data
that
can
be
driven
to
that
performance
management
system
is
now
the
same
kind
of
system
that
is
desired
in
other
parts
of
the
city.
I
want
to
go
back
to
the
service
level
agreements.
That's
probably
at
this
juncture
the
most
difficult
portion
of
what
we're
trying
to
accomplish
I
mentioned
earlier.
There
was
a
legal
analysis
of
our
relationship
with
the
city
of
Tulsa.
R
We
in
essence
leased
the
system
from
the
city,
so
who,
in
fact,
is
in
charge
well,
I
would
I
would
conjecture
that
in
fact,
there's
a
creative
tension
between
the
city
of
Tulsa
and
the
authority,
and
in
fact
we
are
the
only
body.
That's
allowed
to
incur
debt,
municipalities
are
not
allowed
to
incur
debt
and
we
generate
technically
the
most
revenue
for
the
city
of
Tulsa,
but
in
essence
they
at
the
end
of
the
day
own
those
assets,
but
the
margin
of
error
or
the
margin
of
profit.
R
Excuse
me
that
a
private
enterprise
would
have
is
the
ability
to
seek
another
vendor
to
provide
some
of
those
shared
services.
So
what
we're
trying
to
get
to
is
a
situation
where
each
of
those
departments
they've
already
been
cataloged?
What
are
the
services?
Hr
provides
us?
What
are
the
services
legal
provides
us?
Then?
We
measure
on
an
annual
basis.
In
our
long
term
view
we
would
measure
on
annual
basis
their
ability
to
meet
our
criteria
for
high
performance.
R
R
So
looking
back
over
the
last
five
years,
what
would
we
do
differently?
We,
as
everybody
who
starts
down
this
kind
of
road,
were
very
optimistic
in
terms
of
timeframes,
it's
taking
a
little
longer
than
we
expected,
but
I
would
say
that
that
time
was
well
spent.
We
were
careful
about
our
software
and
our
technology
solutions.
We
were
careful
about
our
formula
for
our
business
case
scenario
for
each
capital
item.
We
did.
We
invested
in
lots
of
training
for
our
employees.
R
So
we
were
able
very
quickly,
based
on
the
business
case,
scenarios
to
identify
capital
investment
that
we
were
able
to
put
off
two
three
four
or
five
years,
because
it
was
not
necessarily
immediately
needed.
So
we
were
able,
within
the
two
to
three-year
time
frame,
to
be
able
to
identify
two
three
four
million
dollars
worth
of
capital
cost
that
would
have
raised
our
rates
and
defer
that
later,
based
on
our
risk
assessments,.
R
We
would
have
identified
internal
champions
for
key
components
of
this
work:
heavy
emphasis
on
IT
heavy
emphasis
on
measurement,
heaviest
emphasis
on
technology
and
the
front
hands
of
frontline
employees.
Those
all
those
kinds
of
initiatives
require
not
just
board
leadership,
but
they
require
employee
leadership.
R
R
As
we've
worked
through
these
processes,
we
don't
have
strong
baselines
and,
finally,
we
would
have
done
a
better
job
of
identifying
again
the
business
processes
the
technology
was
purchased
to
solve
and
been
much
more
careful
about,
ensuring
that
that
technology
was
the
adequate
resource
for
that
particular
business
process.
What
has
worked?
We've
changed
our
culture
in
our
system
from
reactive
to
reliability.
We
managed
toward
risk
our
employees
embrace
the
fact
that
they
are
responsible
for
ensuring
the
reliability
of
that
equipment,
against
particular
specific
metrics.
We're
measuring
everything
that
we
do.
R
We
have
a
full-blown
and
successful
computerized
asset
management
information
system.
We
have
a
strategic
plan
that
guides
the
authority
members
and
our
employees
and
we're
working
together
and
it's
tramping
the
transparent
for
the
rest
of
our
community.
We
have
a
business
plan
that
complements
our
strategic
plan.
R
So
overall
results
we
have
a
decreasing
rate
arc.
We
have,
as
I
mentioned
earlier,
need
nearly
immediate
savings
through
the
asset
management
program
due
to
increase
investment
and
maintenance
or
a
reduction
of
the
risk.
We
have
maintenance,
monitoring
and
control
that
we
can
record
and
review
and
measure.
R
O
R
L
R
R
How
did
we
come
to
the
conclusion
that
privatization
was
inappropriate?
Yeah,
the
analysis
done
by
IMG
showed
the
basically
that
the
qualities
we
had
in
our
favor
and,
second
of
all,
what
would
be
we
asked
specifically
for
a
financial
analysis.
All
the
different
scenarios
and
the
advantage
of
privatization
over
the
value
of
retaining
those
assets
was
not
significant
enough,
and
particularly
because
we
had,
in
this
case
we
had
relatively
little
fat
in
our
operations
from
the
external
analysis.
R
H
R
R
O
O
R
O
Other
thing
that
might
say
add
is
that
previously,
although
team
UA
has
open
meetings,
we
weren't
showing
up
at
City
Council
means,
except
for
during
the
annual
budget
process,
to
get
rates
approved,
and
now
we
have
quarterly
presentations
to
the
City
Council.
They
tell
us
what
they
what
their
citizens
would
like
to
hear.
We
present
those
on
public
TV,
and
so
the
community
feels
like
they're
hearing
more
from
TMU
and
what's
going
on
with
the
project
and.
H
R
I
think
that's
an
important
point
right
now
and
I
think
it
was
discussed
by
mr.
Evans
as
well.
The
composition
of
your
leadership
for
your
public
water
and
sewer
treatments
is
really
your
most
critical
decision.
I
know
in
my
own
professional
career
I
have
not
had
the
opportunity
to
work
with
individuals
of
this
caliber
that
I
work
with
every
day
on
the
public
utility
authority.
These
are
individuals
who
are
not
elected,
but
they
are
experts
in
their
field.
R
They
run
manufacturing
organizations,
they
run
finance
organization,
they
take
a
personal
stake
in
the
success
of
the
operation
of
this
utility
authority
and
they
dedicate
the
time
to
making
sure
it's
successful.
There's
been
a
very
if
you
heard
Mr
Evans
comments
he
opened
by
saying
he
selected
the
board
of
directors
that
was
his
sole
role.
R
Well,
there's
been
sort
of
a
informal
effort
on
the
behalf
of
our
own
authority
to
identify
gaps
on
our
authority
member
in
our
Authority
membership
and
then
make
recommendations
to
the
mayor
as
to
what
gaps
are
represented
and
then
looking
for
individuals
who
could
provide
the
fill
those
gaps.
There's
a
dedication
and
a
desire
to
run
the
first-class
water
and
wastewater
treatment
operation
in
the
city
of
Tulsa
and
I
really
think
that
comes
down
to
you
know
just
real
real
engagement
from
our
authority
members.
R
Also
have
a
trust,
so
we
know
we
only
have
the
utility
authority,
seven
members,
they
break
into
committees.
So
we
have
operation
committee,
we
have
Finance
Committee
and
we
have
an
engineering
committee
and
we
meet
with
staff
and
we
function
every
other
week
at
length.
Yeah.
There
are
no
other
there's.
P
What
you
described,
what
you
described,
if
I
heard
you
right,
if
I
can
only
phrase
if
I
process
it
right,
is
you
got
into
a
lot
of
blocking
and
tackling,
and
how
do
we
do
things
and
how
do
we
just
get
closer
just
get
closer
to
it?
So
what
you
described,
I
was
an
industry
for
30
years
and
I'm
familiar
with
Malcolm
Baldrige,
Awards
and
I
get
all
that
and
what
you
talked
about.
Was
you
really
got
into
blocking
and
tackling?
P
How
do
we
run
this
Authority
better
to
provide
clean,
safe
water
and
make
our
residents
happy
with
what
they're
getting
at
a
decent
value
and
what
we
keep
getting
around
here,
at
least
what
I'm
hearing
is.
You
know
our
biggest
issue
again
comes
back
to
governance.
We've
had
this
board
that,
for
whatever
reason,
just
hasn't
quite
done
what
we
needed
to
do-
and
it
sounds
like
some
of
it-
may
have
been
politics
I,
don't
understand
all
the
history,
so
I
can't
opine
on
that,
but
you
know
so
we're
looking
at
different
ways
of
doing
it.
P
One
is
to
add
a
trust.
The
other
is
to
do
what
you
did,
which
is
just
make
sure
you
got
the
right
people
on
the
board
to
do
their
job
is
what
a
board
is
supposed
to
do
and
I
again
I'm,
not
dissing
any
current
or
past
board
members.
That's
not
what
I'm
doing,
but
you
know,
one
thing
is
the
assumption
in
Pittsburgh
was
that
the
board
was
doing
what
was
supposed
to
be
doing.
P
So
we
would
not
have
a
problem
with
lead
and
we
wouldn't
have
problems
with
holes
in
membranes
and
but
and
and
that
the
PWA
would
do
what
it
was
supposed
to
be
doing.
But
for
some
reason
things
broke
down,
but
it
sounds
like
you
can
get
it
back.
If
you
get
the
right
governance
structure
and
then
you
get
the
the
authority
to
focus
on
what
they
need
to
do
and.
R
And
I
was
struck
by
the
comments
from
the
controller
related
to
our
past
challenges
indicate
the
future
does
not
look
positive,
but
the
in
essence,
and
the
image
that
came
to
my
mind
is
not
unlike
somebody
else
mentioned
the
hurricane.
So
my
hat,
my
house
has
no
walls,
do
I,
stop
and
blame
the
previous
contractor.
I
have
no
choice
but
to
design
a
plan
to
fix
it
and
make
it
habitable.
I
have
no
choice
and.
R
M
R
O
So
the
Tulsa
utility
board
is
the
organization
formed
by
the
Charter
and
that
lease
goes
on
for
some
long
period
of
time.
The
authority
then
leases
the
operation
back
to
the
city,
employees
of
the
water
and
sewer
department,
finance
in
the
other
departments
and
that
lease
I
think
ends
in
15
years,
but
it's
a
40
year.
Lease
is.
R
L
R
R
We
grappled
with
that
for
a
long
time,
because
are
we
trying
to
provide
safe,
reliable,
affordable
water,
or
are
we
trying
to
be
best
in
class
and
what
we
decide
our
first
class,
what
we
decided
as
an
authority
as
our
our
responsibility
to
the
citizens
was
reliable,
safe
water,
well-managed
with
an
eye
toward
our
resources,
which
is
we
all
know,
water
as
a
diminishing
resource
and
so
point
being.
Affordability
is
a
key
element
of
our
work.
R
R
Well,
I
mean,
in
general
terms,
I
mean
I,
have
a
philosophy
that
the
more
people
involved
in
a
decision
more
likely
you're
going
to
get
toward
a
good
decision.
Having
said
that,
when
you're
operating
a
system,
the
size
that
we're
operating,
that
with
the
expertise
is
required,
I
mean
I,
think
there
are
some
balancing
acts
on
that.
R
So
I
would
say
at
this
juncture
because
we
are
operating
at
a
high
level.
There
are
not
many
citizens
in
Tulsa
who
said
they
should
have
been
involved
in
the
a
strategic
plan.
Our
goal
was
to
develop
a
strategic
plan,
could
drive
these
improvement
initiatives
and
then
make
that
available
to
the
citizens
so
that
they
could
have
input.
So
they
would
have
an
opportunity
to
monitor,
and
we
are
also
from
some
perspective
under
a
time
constraint.
A
C
If
I
could
add
to
that
briefly,
the
difference
between
Tulsa's
strategic
plan
and
business
plan
and
that
of
virtually
every
other
utility
water
utility
in
the
country
is
extraordinary,
stored
only
wide
and
that's
one
of
the
things
that
probably
led
to
them
to
develop
the
the
process
internally.
This
plan
is
detailed,
it
its
extensive.
It's
specific.
It
has
a
very
large
number
of
very
specific
measurements
in
it
and
that
kind
of
defies
that
level
of
detail
and
and
sort
of
command
and
control
defies
having
it.
R
Might
also
add
our
city:
councilors,
must
approve
our
rates
so
by
their
engagement,
I
mean
it
is
a
communication,
a
two-way
communication
channel.
So
we
are
accountable.
The
city
councilors
we
meet
in
their
districts
on
a
regular
basis.
Eric
presents
other
members
present
regularly
in
the
districts
of
the
councillors.
R
Part
of
our
effort
last
five
or
six
years,
is
to
make
sure
that
the
communication
flows
continuously
from
our
authority
to
the
mayor
and
the
city
councillors.
We
cannot
expect
voters
ratepayers
city
councilors,
to
take
regular,
consistent
rate
increases
to
to
improve
our
system
without
a
heavy
level
of
communication.
R
M
Final
question
is
I'm,
not
certain
if
you're
familiar
with
the
infrastructure
in
place
here
and
the
aging
infrastructure
and
the
challenges
we
have
regarding
capital.
Is
that
similar
to
what
you
all
experienced
in
Tulsa
in
terms
of
the
age
and
the
various
challenges
you
have
with
the
infrastructure.
R
O
L
R
R
What
was
in
lockstep
with
us
on
our
solution
on
our
plan,
and
this
current
mayor
is
in
the
same
situation
and
I
would
have
to
say.
Yes,
there's
a
very
high
level
of
credibility
for
our
authority
members
and
that's
because
we're
dedicated
to
one
thing,
and
that
is
high
level
of
operation
and
quality
and
reliability
of
our
systems.
P
P
F
R
A
C
B
C
O
E
O
H
J
J
There
are
several
I'll
say
data
points
that
Willis
that
that
will
point
out
to
the
group
that
are
going
to
bear
further
investigation
from
our
team,
but
we
wanted
folks
to
understand
kind
of
where
we
were
where
we
were
headed.
Okay,
so
in
terms
of
financial
performance,
a
couple
of
broad
comments,
certainly
we
see
revenue
growth
every
year
since
2013
average
growth
over
the
past
five
years,
5.3
percent
over
that
same
period
earning
margins
have
declined
since
2012
operating
income
margin
was
about
18
percent
and
that's
below
the
five-year
average
of
23
23
percent.
J
Another
interesting
data
point
where
we're
going
to
continue
to
look
into
is
around
days
cash
on
hand.
So
one
of
the
things
that
we've
done
is
is
we've
compiled
all
these
metrics
and
then
we've
compared
them
to
about
15
other
public
water
entities
utilities
in
Pennsylvania,
including
the
city
of
Philadelphia.
J
It
has
a
comparison
point,
so
that's
part
of
this
benchmarking
and
the
size
of
the
spreadsheets
and
everything
else
is
pretty
intimidating
and
our
role
here
is
to
digest
and
consolidate
working
with
Steve
and
his
team
to
actually
present
our
findings
so
at
a
high
level,
so
Dave's
cash
on
hand.
That
number
is
59
point
eight
for
you
guys,
which
is
which
is
pretty
low.
The
median
is
about
two
hundred
and
twenty
days
of
cash
on
hand
across
all
fifteen
other
entities.
Comparison
to
Philadelphia
is
about
seventy
nine
point.
J
Five,
so
days,
cash
on
hand
is
a
little
low.
That's
that's
an
area
where
we're
going
to
we're
going
to
look
in
we're
gonna
look
into.
Let's
talk
about
capital
investment
over
the
last
five
years.
It's
varied,
ranging
from
a
low
of
about
fourteen
percent
in
2014
to
a
high
of
about
twenty
seven
percent
in
2015,
and
then
we
did
a
lot
of
analysis
around
debt
and
liquidity.
J
Debt
balance
has
increased
pretty
significantly
to
about
seven
hundred
and
seventy
four
million
that
in
2013
and
it
slowly
declined
over
the
years.
A
couple
of
the
metrics
that
were
looking
into
your
net
debt
to
revenue
has
declined
each
year
since
2013
from
a
5.2
times
multiplier
to
about
4.1
in
2016.
J
That
4.1
is
still
relatively
high
when
compared
to
the
rest
of
the
benchmarking
group.
Benchmarking
group
is
about
3.2,
X
and
Philadelphia
as
a
comparison
is
2.9,
so
we're
continuing
to
look
into
it.
But
that's
where
our
initial
analysis
is
starting
to
point
internal
controls.
We
focused
internal
controls
in
two
areas:
around
capital
projects,
capital,
budgeting
and
and
procurement.
J
Those
processes
were
very
ad
hoc
and
over
the
last
year
or
two
they've
started
to
document
more
clearly
how
those
processes
should
operate.
But
there's
there's
room
for
improvement.
A
consistent
theme,
you're
gonna,
see
both
in
terms
of
internal
control
as
well
as
IT
is
gonna,
be
around
resource
constraints.
So
around
your
your
capital
budgeting
function,
that's
a
single
person
who
is
responsible
for
that
entire
process.
Generally,
that's
shared
across
across
several
resources
and
they're
tending
to
operate
in
this
mode
of
being
kind
of
urgent
reactive,
as
opposed
to
planned
proactive.
J
So
when
they're,
looking
at
capital
planning,
they're
saying
alright
we're
gonna
focus
just
on
cost
and
risk
where
a
mature
function
with
with
more
people
will
have,
there
might
be
ten
or
fifteen
other
factors
that
would
go
into
a
capital
planning
process
and
as
you're
prioritizing
which
projects
they
they
don't
have
time
to
do
that
level
of
analysis.
They
don't
have
the
resources
to
do
that
level
of
analysis
in
terms
of
procurement
control.
J
A
lot
of
the
processes
that
you're
using
for
procurement
while
base
should
be
enabled
by
your
systems
or
not
they're,
generally
very
manual,
and
there
are
very
few
of
the
automated
controls
you
would
see
with
a
system
that
that
are
in
place.
So,
for
example,
you
could
have
an
invoice
that
could
get
paid
that
exceeds
the
amount
of
an
issued
purchase
order,
so
there's
a
purchase
order
for
X
dollars.
Somebody
sends
an
invoice
well
in
advance
of
that.
The
system
should
automatically
flag
that
and
say
there's
a
problem.
J
The
system
doesn't
it
could
be
paid,
and
it's
it's.
It
is
the
responsibility
of
somebody
manually
doing
a
compare
of
the
invoice
to
the
purchase
order.
It's
it's
led
to
some
problems,
as
folks
were
trying
to
get
invoices
paid
very
quickly.
It's
led
to
some
dispatch
dissatisfaction
from
the
vendor
community,
and
so
it's
an
area
where
they
could,
where
they
could
stand
to
have
a
little
more
focus.
J
The
other
area
I
want
to
talk
about
is
around
a
broad
topic
of
segregation
of
duties,
and
what
that
means
is
you
generally,
with
accounts
payable
and
accounts
receivable
your
procurement
process?
You
need
to
have
those
separate
and
right
now,
because
you're
so
resource-constrained,
the
same
individuals
have
the
ability
to
create
a
vendor,
approve
a
purchase
order,
receive
the
goods
and
services
and
approve
the
invoice.
There's
no
control.
P
J
So
they're
manual,
the
the
they're
Matt
Walde,
the
segregation
of
duties
issue
is
a
very
serious
issue
that
we're
pointing
out
absolutely
right,
absolutely
right
but
and
there,
but
the
broader
issue
around.
There
are
a
lot
of
other
controls
that
could
be
automated
in
the
system
but
but
or
not,
and
and
they
are
they're
manual
and
and
any
questions.
J
You're
using
Microsoft
Dynamics,
yes,
and
it's
it
again,
we're
still
gathering
information,
but
it
has
you,
you
have
your
support
for
that
package
is
with
a
third
party,
and
that
relationship
has
struggled
recently
and
they're
significant
well.
There
are
enhancements
that
PWSA
has
requested
from
the
vendor
that
the
vendor
has
been
unable
or
unwilling
to
implement,
and
so
that
relationship
is
is
strained
and
one
of
the
strategic
objectives
within
the
IT
function
is
to
look
at
changing
those
system
dynamics.
J
J
So
I
want
one
last
comment
in
terms
of
IT,
though
the
issues
are
essentially
the
same.
The
main
issue
around
IT
is
lack
of
resources.
There's
IDI,
eight
headcount
that
are
approved,
full-time
employees
that
are
approved
for
supporting
the
IT
function.
You
currently
have
only
three
staffed,
and
so
that
keeps
you
in
this
mode
of
we're
putting
out
fires.
J
L
B
Yeah,
if
they're
questions
or
other
information
that
the
panel
would
like
to
see,
Bob,
Weimer
and
Kent
Liz
you're,
both
here
as
they
have
been
in
past
meetings
and
I,
know
they're
more
than
willing
to
share
that
information.
And
obviously
this
is
I'm
not
sure
how
much
time
you've
spent
with
the
team.
But
you
know
I'd
like
for
the
ultimate
report
of
the
financial
analysis.
I
know
these
guys
work
very
hard
and
I'd.
Like
you
know,
these
are
anecdotes
that
you're
pulling
out.
J
C
N
N
N
Not
only
from
advisory
panel
members,
but
you
know
the
blue-ribbon
panel
I'm
not
sure
that
there's
a
good
understanding
of
the
current
state
there's
a
good
understanding
of
the
symptoms
right
and
I'm.
Looking
at
your
chart,
astok,
you
know
first
hand
out
about.
You
know
how
you
go
about
figuring
out
how
to
solve
some
issues.
I
think,
there's
a
good
understanding
in
the
community
about
the
symptoms
right.
C
N
As
to
what
the
root
cause
is
the
root
cause
board
governance
is
the
root
cause.
The
residency
requirement
you
know,
is
the
region,
and
probably
there
are
multiple
root
causes,
but
for
us
I
think
to
help
you
guys
make
a
decision
and
a
recommendation
to
the
mayor
as
to
what's
a
good
path
to
go
forward.
I
think
in
doing
that,
without
really
understanding,
you
know
those
first
three
things
you
know,
which
is
the
true
in
any
process,
improvement
effort
right.
N
You
know,
as
as
you
know,
the
fellow
from
Indianapolis
is
saying
you
know
you
gotta
understand
the
current
state
and
you
got
to
understand
what
are
the
root
causes
associated
with
the
problems.
I
am
very
nervous,
as
I
hear
discussions
at
this
level
that
we
don't
have
a
good
understanding
of
either
of
those
two
and
so,
if
we
naturally
then
jump
to
recommending
a
solution
without
understanding
the
current
state
or
the
root
causes,
you
know
and
I.
When
I
read
this
last
night,
when
I
read.
N
Right,
weird,
we
don't
want
to
head
to
a
false
start
right.
We
don't
want
to
come
up
with
a
solution
and
not
really
understand
what
the
current
state
is
or
what
the
root
causes
are.
Everybody
kind
of
has
a
sense,
different
senses
of
what
they
think
the
root
causes
a
heart
right
because
of
their
level
of
knowledge.
What
they've
read
in
the
press?
You
know
what
they've
heard
from
elected
officials,
but
what
I'm,
hoping
you
guys
tell
us,
is
an
independent
third
party.
N
C
Set
I
think
I
can
start
by
agreeing
with
you
that
the
level
the
the
level
at
which
we
can
get
to
within
the
scope
of
the
assignment
here
is
limited.
However,
the
scale
of
PW
essays
problems
actually
in
a
lot
of
ways
make
that
easier.
I
think
that
we're
withholding
we,
you
know
what
we
are.
We
were
asked
to
provide
our
initial
impressions
and
to
in
purport
on
our
you
know,
ongoing
investigation.
We
have
yet
to
take
the
opportunity
to
synthesize
all
those
findings.
C
We
are
looking
for
the
root
causes
and
because
those
root
causes
lead
us
to
understand
what
the
solution
is.
We
aren't
just
doing
this
assessment
in
a
vacuum.
It
is
very
much
rooted
in
then.
How
do
we
solve
these
problems?
If
you
know
what
what
is
the
root
of
the
problems
and
which
of
the
alternatives,
if
any
will
best
address
those
problems,
and
that's
the
findings
that
we
will
present
to
the
to
the
blue-ribbon
panel
at
the
conclusion
of
our
engagement.
B
D
D
One
I
think
it
has
to
be
stated
here
that
for
the
those
of
us
who
deal
with
the
city
and
county
finances,
we
of
course
know
this,
but
the
city
and
county
operate
on
a
joint
financial
management
platform
and
it's
important
to
note
that
I
don't
have
the
date
in
front
of
me,
but
several
years
back,
PWSA
was
presented
with
the
opportunity
to
come
on
to
that
financial
management
platform
with
really
minimal
minimal
cost
in
the
City
and
County
operate
on
that,
because
we
have
an
expensive
license
for
that.
Very
purpose
for
cost
savings.
D
So
I
mentioned
that
because
here
is
yet
another
opportunity
for
in-house
government
solutions
with
respect
to
IT.
That's
my
comment.
The
question,
though
I'm
very
very
concerned
and
my
office
has
looked
at
the
audited
financial
statements
and
those
are
done
and
they've
been
cleaned
done
annually
at
least
recently
by
Myra.
Do
so
very
reputable
firm.
So
I
can't
understand
how
the
presentation
today
we're
hearing
that
they're
essentially
aren't
controls.
Yet
there
have
been
clean,
audited,
financials.
D
So
I'm
hopeful
that
when
you
do
finalize
your
report,
you'll
clear
up
that
discrepancy
because
there's
a
problem
there,
whether
you
have
you
know
and
I'm,
not
trying
to
you,
know,
make
any
sort
of
scare
tactics.
But
if
you
put
those
two,
then
you
have
a
real
lack
of
fiduciary
duty
or
you
have
an
Enron
situation
and.
D
B
Other
questions
from
the
public,
okay,
anything
else
from
the
panel
well,
first
of
all,
thank
you
all
for
being
here.
I
think
this
was
a
good
step
forward,
understanding
how
at
least
two
other
municipalities
addressed
this
issue.
I
we
will
have
another
public
meeting,
I
believe
on
November
8th
I've
asked
the
and
I'm
not
sure
if
the
data
set
but
IMG
to
also
work
with
our
communication
staff
to
have
a
meeting
outside
of
City
Council
in
the
community.