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From YouTube: PWSA Blue Ribbon Panel Presentations - 11/8/17
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A
A
Get
afternoon
everybody
Kevin
Acklin,
chief
chief
of
staff,
to
Mayor
Peduto.
Thank
you
appreciate
everyone
being
here
today
for
our
third
public
meeting
of
the
mayor's
blue-ribbon
panel,
we've
been
assembled
in
an
open
public
process
to
evaluate
the
assets
and
conditions
of
the
Pittsburgh,
Water
and
Sewer
Authority
appreciate.
A
It's
about
water
safety,
it's
about
green
infrastructure,
about
solving
our
combined
sewer
overflow
issues,
and
so
we've
gotten
to
the
point
where
IMG,
who,
who
we
selected
to
run
this
process.
There
was
a
public
meeting
last
week
today
is
about
presenting
some
of
the
options
that
that
are
before
us
that
we
can
consider
collectively
in
moving
forward.
So
with
that
I'm
going
to
have
a
presentation
by
Steve,
Steckler
who's
here,
there'll
be
some
questions
by
the
panel.
A
We
also
invite,
at
the
end
of
the
presentation
for
members
of
the
public,
to
approach
us
to
ask
questions
of
the
panel
or
of
Steve.
We
intend
to
have
a
robust
community
engagement
here
and
for
the
for
folks
at
home.
You
can't
see
we
do
have
a
packed
room,
so
I'm
just
pleased
that
we
have
so
much
encouragement
and
participation
by
by
stakeholders
there
here
in
the
city,
a
number
of
you
who
we
work
with
on
these
issues
over
the
last
several
years
since
we've
been
in
office.
A
So
on
behalf
of
the
mayor,
we
intend
to
do
the
right
thing.
We
there
are
some
hard
decisions
ahead
of
us,
but
we
intend
to
do
so
in
an
open
public,
transparent
manner
and
that
that
this
meeting
today
is
yet
another
step
towards
the
ultimate
outcome
of
solving
this
situation.
Not
kicking
the
can
down
the
road,
but
but
obviously
making
some
of
the
decisions
that
are
necessary
for
us
to
rebuild
this
this
structure
so
with
that
I'll
turn
it
over
to
Steve
Steckler
from
from
IMG.
A
B
You
good
to
see
you
again
and
gather
here
doll
so
though
they'll
call
the
folks
in
the
audience
as
well
the
members
of
the
PWSA
board
and
its
executive
leadership
today
we're
going
to
talk
about
the
results,
not
so
much
of
the
early
part
of
the
assessment
where
we
were
looking
at
operations,
capital,
improvement,
programming
and
the
various
business
processes
in
financial
situations,
internal
controls
and
information
technology
of
PWSA.
But
we're
gonna
focus
on
the
options
to
restructure
the
PWSA.
B
It's
been
a
lot
of
work
and
they've,
been
very
responsive
in
providing
all
the
information
that
we've
requested,
including
even
working
with
us
on
the
rate
impact,
modeling,
the
capital,
improvement,
programming,
assessment
and
other
critical
items
here.
So
again,
thank
you
for
your
cooperation
in
that
regard,
the
we'll
begin
with
the
context
for
the
P
WSA's
restructuring,
noting
that
PWSA
has
a
lot
of
difficulties,
a
lot
of
very
special
difficulties,
but
it's
also
just
part
of
a
national
problem
that
has
to
be
addressed
one
way
or
another.
B
Then
we'll
talk
about
the
assessment
process
and
a
few
of
the
key
findings,
but
since
you've,
already,
we've
already
delivered
those
to
you
through
publications,
through
meetings
and
through
publications
that
are
on
the
website.
I
won't
dwell
too
much
on
those
we'll
talk
about
the
public
engagement
process
that
we
utilized
and
a
lot.
B
Well
then,
talk
about
those
values,
the
Pittsburg
values,
these
values.
These
charts
that
you
see
around
here
were
used
in
the
public
workshop
to
say
not
just
Point
Blank.
We
don't
like
this.
We
don't
like
that.
We
don't
like
this,
but
instead
to
say,
what's
important
to
you
in
terms
of
labor
accountability,
what
are
your
values
in
terms
of
service
quality?
What
what
again?
What
are
the
priorities
here
in
what
they
want
from
a
water
system,
water
and
sewer
system
and
we'll
look
at
those
values?
B
In
the
context
of
each
of
the
restructuring
options,
well
then
talk
about
would
then
review
the
researching
options
with
you
and
talk
about
how
they
work
and
and
tell
you
about
the
analyses
that
we
did
in
support
of
those
of
that.
Looking
at
the
restructuring
options
and,
finally,
we'll
share
our
conclusions
with
you
about
where
we
are
at
the
end
of
this
assessment
process
and
the
information
that
you
should.
You
should
want
to
look
at
very
carefully
as
you
go
forward
in
your
process.
B
I
mentioned
that
failing
infrastructure,
specifically
water
and
sewer
infrastructure,
is
a
huge
national
problem.
Americans
use
about
42
billion
billion
gallons
of
water
a
day
or
about
fifteen
trillion
gallons
a
year
nationwide,
there's
a
one
trillion
dollar
backlog
of
capital,
investment
for
water,
including
a
270
billion
backlog
for
sewer
and
stormwater
that
one
trillion
dollars
is
not
easy
to
come
by.
It's
raised
almost
entirely
at
the
local
level,
and
it's
it
is
a
pressing
problem
for
almost
every
major
city
in
the
country.
B
Every
city
is
struggling
with
it,
and
especially
now
they're
struggling
not
just
with
the
infrastructure.
That's
reaching
the
end
of
its
useful
life.
They're
also
struggling
with
new
mandates
for
to
eliminate
combined
sewer
overflow
problems
to
keep
pollution
for
money
into
our
rivers
and
water
sources
during
storm
events,
they'll
cost
for
that
system.
The
cost
for
those
improvements
alone
reaches
the
hundreds
of
billions
of
dollars.
B
Yet,
despite
all
of
these
problems-
and
you
would
think
that
this
has
said-
this
is
a
national
crisis
that
would
include
a
national
solution
and
I'll.
Tell
you
about
one
of
those
national
solutions.
You
know
see
how
small
it
is
compared
to
the
scale
of
what's
needed.
We
are
spending
total.
Our
total
annual
spending
on
water
infrastructure
has
actually
declined
in
real
terms
over
the
past
25
years.
It's
declined
in
the
face
of
all
those
growing
needs,
a
much
larger
population,
a
fast
deteriorating
infrastructure
that
was
putting
sometimes
in
cases
well
over
100
years
ago.
B
Certainly,
the
case
in
Pittsburgh
and
PWSA
has
found
that,
in
a
situation
where
it
is
likely
among
the
worst
performers
and
with
terms
of
taking
care
of
its
infrastructure,
have
any
of
the
systems
out
there
in
the
United
States.
As
I
said,
it's
not
alone,
but
it
is
notable.
I
mentioned
the
national
spending
on
water
and
sewer
infrastructure
has
actually
declined,
and
this
what
this
chart
chart
shows
you
is
the
Green
Line
is
the
operating
expenses
for
water
and
sewer
infrastructure
in
the
country.
B
You
can
see
sometime
around
1980
that
the
capital
expenditures
started
to
decline,
whereas
they
used
to
run
fairly
close
together
to
operating
expenses.
The
operating
expenses
reflect
just
normal
and
an
increase
in
number
of
households
and
water
and
sewer
services
that
they
use,
but
you
can
see
the
capital
expenditures
haven't
kept
in,
haven't
kept
nearly
with
pate
and
nearly
in
pace
with
those
expenditures,
and
that's
just
one
snapshot
of
the
gap
out
there
in
looking
at
how
this
problem
manifests
itself.
B
In
Pittsburgh,
we
used
a
multi-step
process,
a
multi-step
process
to
look
at
the
performance
of
the
utility
to
look.
Let's
look
at
its
likely
future
performance.
Look
at
the
problems
that
it
faces
to
look
at
the
capital,
improvement
programs
that
are
required
and
look
at
the
organization's
capability
of
handling.
The
very
large
expenditures
need
to
be
made.
B
We
started
off
with
a
kickoff
meeting
with
the
city,
the
PWSA,
the
utility
management
and
meetings
with
city
officials.
From
there
we
launched
into
a
high-level
service
and
operations
assessment.
We
had
hoped
to
go
on
a
very
deep
dive
into
the
into
the
operations
assessment.
However,
one
shocking
issue
which
both
we
and
P
WSA's
current
management
has
noted,
is
the
rather
stunning
lack
of
information
of
real
date
performance
data
that
you
would
expect
an
assist
in
this
size.
B
C
B
B
Don't
have
time
or
the
resources
to
go
into
a
deep
assessment
of
the
sewer
system.
Most
of
that
is
underground,
of
course,
and
so
we
have
to
rely
on
what
we
can
observe
in
terms
of
pump
stations
and
the
like,
and
also
the
information,
the
condition
information
on
those
assets.
In
the
public
engagement
process.
We
began
and
focused
on
the
values,
the
public,
the
values
that
the
participants
in
the
workshop
brought
to
the
meeting,
but
not
just
that.
D
You
know
I'm
going
to
talk
about
two
things.
Our
firm
was
brought
on
to
look
at
green
infrastructure
and
I'm,
going
to
tell
you
a
little
bit
more
in
depth
about
our
findings
with
regards
to
green
infrastructure,
but
also
share
with
you
a
little
bit
about
some
exercises
that
that
the
team
put
together
in
order
to
give
the
blue
ribbon
panel
in
the
mayor's
office,
some
multiple
dimensions
by
which
to
think
about
these
decisions.
D
Really
thank
the
members
of
the
blue-ribbon
panel
and
others
who
came
out
that
night
I
know
there's
a
lot
of
folks
here
who
are
familiar
faces
and
I
appreciate
that
I
want
to
give
you
a
summary
of
what
they
are,
but
I
encourage
you
to
read
through
both
the
different
categories
that
are
represented
here
and
to
understand
that
you
have
a
very
active
and
engaged
public
in
looking
at
what
we
value.
There
are
seven
different
categories
for
those
of
you.
D
They
can't
see
labor
health
and
safety,
accountability,
cost
trust
and
transparency,
implementable,
'ti
and
green
infrastructure,
not
surprisingly,
the
things
that
folks
cared
about
the
most
were:
accountability,
cost
and
green
infrastructure.
You
can
see
that
both
in
the
number
of
dots
that
are
on
the
wall,
as
well
as
the
kind
of
bar
chart-
that's
represented
in
this
slide,
break
that
down
a
little
bit.
D
So
they
have
to
do
with
making
sure
that
people
can
pay
their
bills,
making
sure
that
we
can
hold
their
rates
down,
making
sure
that
we
don't
do
any
sort
of
shut
offs,
and
so
I
think
that
that
is
also
heard
consistently
through
everybody's
conversations.
Lastly,
with
regards
to
green
infrastructure,
so
while
this
was
a
category
for
the
public
to
respond
to,
it
also
represents
a
deeper
dive
that
our
firm
was
asked
to
do
with
groups
that
deal
with
green
infrastructure.
D
So
if
an
organization
partners
with
or
has
some
role
in
providing
green
infrastructure,
implementing
green
infrastructure
or
advocating
for
green
infrastructure,
we
met
with
many
of
them,
not
all
of
them.
There's
always
folks
who
are
still
out
there
and
that's
that's
great
I
want
to
share
with
you
some
of
those
findings,
because,
while
the
public
sighted,
this
is
their
third
most
important.
These
experts
or
advocates
gave
us
increased
levels
of
feedback
and
I
want
to
share
with
you
some
of
those.
So
in
a
kind
of
big
picture.
D
Most
of
the
groups
that
we
met
with
were
non-committal
on
the
different
models.
They
either
didn't
have
enough
information
or
didn't
understand
exactly
which
ones
would
be
best
for
green
infrastructure.
But
what
they
did
do
is
to
give
us
some
key
points
and
I'll
read
through
this
in
general,
and
then
I'll
go
into
a
little
bit
more
detail
on
these.
One
is
that
there
needs
to
be
interagency
collaboration
and
cooperation,
and
whatever
models
chosen
has
to
allow
for
this.
Second,
the
community
organizations
need
to
be
folded
into
this
as
well.
D
Lastly,
a
number
of
groups
cited
that
this
could
be
a
separate
stormwater
Authority
they
didn't
know,
does
this
belong
into
kind
of
revised,
revision,
Water
and
Sewer
Authority
and
we're
kind
of
concerned
about
this,
especially
with
regards
to
regionalization
issues
and
I,
just
want
to
spend
a
little
bit
of
time
briefly
going
through.
Some
of
these
things
needs
to
be
interagency
cooperation,
so
that
you
understand
what
they
said
with
regards
to.
D
Second
point
relates
to
that
collaborative
relationships
that
the
PWSA
currently
has
with
the
nonprofit's
that
serve
as
advocates
and
sometimes
service
providers.
With
regards
to
green
infrastructure,
there's
no
doubt
that
a
PWSA
2.0
would
take
on
different
roles
and
responsibilities,
but
it
has
to
be
very
important
that
the
collaborative
relationships
that
exist
are
continued
and
that
that
is
continuing
to
be
a
partnership,
and
that
takes
an
active
facilitation
process
to
understand
what
P
WSA's
redux
does
and
what
these
organizations
continue
to
do,
so
that
has
to
be
cultivated
that
relationship.
D
Lastly,
bringing
up
this
conversation
of
regionalization
it
seems
like
there
are:
there
have
been
studies
and
there's
a
goodly
amount
of
knowledge
out
there
about
regionalization,
but
not
perhaps
yet
explored
through
these
models,
and
so
that
should
be
part
of
conversations
that
are
we
use
to
evaluate
which
of
these
models
are
most
robust.
So,
lastly,
there
is
recommended
that
there
be
a
strong
statement
that
goes
into
whatever
types
of
next
steps,
for
whatever
type
of
organization
comes
out
of
this,
and
these
are
just
some
of
the
key
points.
D
B
Additional
note
on
green
infrastructure
and
we've
in
this
slide,
we've
actually
italicized,
affordable
strategy
in
green
infrastructure
is
a
key
part
of
that.
Img
led
a
team
of
engineers,
architects,
planners
and
landscape
architects
after
Hurricane
sandy
to
try
to
address
the
rebuilding
of
the
infrastructure
there
in
a
way
that
was
more
sensitive
to
the
environment
and
did
not
involve,
for
example,
large,
concrete
and
rebar
sea
walls
and
and
tunnels,
and
the
like
for
it
to
deal
with
future
storm
events
and
sea
level
rise
and
in
that
process.
B
Even
though
I
went
to
graduate
school
with
them,
I
learned
a
new
appreciation
for
landscape
architects
and
actually
their
ability
to
a
find
cost
of
very
cost-effective
solutions
that
had
significant
resulted
in
significant
reductions
in
the
overall
cost
of
the
planned
gray
infrastructure.
And
so
that's
something
to
keep
in
mind.
That
is
that
green
infrastructure
is
not
just
something
nice
to
do
for
the
environment.
It
is
a
powerful
cost
reduction
mechanism
for
the
achieving
the
same
public
objectives
the
pittsburg
were.
Actually.
B
But
basically
we
asked
their
opinion
and
asked
what
questions
they
had
and
and
the
results
were
included,
for
example,
on
making
internal
improvements
without
further
restructuring,
and
the
here
are
some
of
the
concerns
that
were
raised
I'm
concerned.
This
would
be
a
half-hearted
effort.
We
need
to
recruit
a
really
good
leader,
I'm
concerned,
about
how
much
time
it
will
take.
We
have
political
now
what
would
happen
down
the
line?
B
Water
should
be
publicly
managed
and
owned.
What
restructuring
of
the
board
would
ensure
similar
problems
don't
recur,
so
this
is
clearly
what
people
were
thinking
about
when
they
were
asked
about
internal
improvement
than
whether
it
would
work
and
what
forma
would
take.
As
for
public-private
partnerships,
they
also
had
additional
questions.
B
B
Private
capital
always
comes
with
string
attached,
I'm
concerned
about
people
before
profit,
and
does
the
public
have
an
influence
if
the
pub,
if
the
private
sector
is
involved
again,
all
very
good
questions
on
private
ownership.
There
was
clearly
a
concern
about
losing
control
of
the
water,
water
rights
and
the
effects
its
effects
on
health.
The
economy
in
the
community
also
very
prominent
was
the
concern
about
poor
service
in
higher
rates
and
wondering
whether
the
weather
would
be
a
monitoring
of
water
quality
improvements,
not
just
by
PUC
and
I'm
there,
and
also
a
concern
that
this.
B
When
we
looked
at
the
restructuring
options,
we
started
with
a
baseline
assumption
now
that
baseline
assumption
was
not
that
nothing
will
happen.
The
baseline
assumption
included
the
PWSA
will
continue
to
make
some
material
improvements
begun
under
its
acting
director,
including
hiring
better
staff
when
possible,
collecting
and
refining
at
asset
data
and
condition
and
improving
basic
capital
programming
and
operating
protocols.
And
again
these
are.
This
is
exactly
what
we're
seeing
and
we
can
expect
that
to
continue.
B
B
B
With
regard
to
look
just
start
at
the
top
there,
with
with
governance,
the
Auditor
General
spent
a
considerable
amount
of
time
looking
at
the
utilities,
governance,
and
indeed
you
could
say
since
since
problems
start
at
the
top
generally,
not
the
bottom-
that
governance
over
the
past
twenty
to
twenty
five
years
has
been
a
great,
very
great
challenge
for
to
PWSA.
It
could
not
have
ended
up
in
its
er
current
circumstances
without
that
issue,
and
indeed
this
is
exactly
what
the
Auditor
General
pointed
out
in
his
report.
B
So
I'm
looking
at
the
governance,
we've
relied
heavily
on
his
findings
and
the
materials
that
were
actually
used
to
render
those
findings,
and
you
can
see
here
the
comment.
The
opening
comment
of
the
Auditor
General's
report
on
PWSA
is
governance.
Let's
start
with
the
objective
here
and
I
think
this
objective
is
shared
fairly
widely.
B
The
objective
is
to
have
a
political,
political
independence
and
longed
and
think
long
term,
and
strategically
rather
than
short
term,
and
to
have
an
organizational
focus,
and
in
that
regard,
we've
invited
Indianapolis
in
to
make
a
to
provide
testimony
to
you
at
your
last
meeting.
We
also
invited
Tulsa.
They
have
very
different
but
very
functional
governance
alternatives.
The
one
in
Indianapolis
is
not
unprecedented,
but
it
is
the
largest
in
Indianapolis
they
have.
B
We
took
that
as
one
possible
model.
In
addition,
we
looked
at
the
tulsa
board
and
now
the
Tulsa
is
not
the
best
infrastructure
board
out
there,
but
it's
a
pretty
darn
good
one.
It's
notable
primarily
because
of
the
fact
that
its
appointees
are
extremely
high-profile.
I
would
point
to
a
few
other
boards
in
the
country,
for
example
the
board
for
for
the
Washington
Metropolitan
Transit
Authority
the
board
for
the
Nashville
Airport
the
board
for
Seattle
MSD.
They
all
stand
out
for
the
quality
and
dedication
of
the
personnel
there
and
it
isn't
just
them.
B
It's
that
it's
the
power
that
that
board
has
power
independence.
Now,
whether
or
not
the
current
board
for
PWSA
is
measures
up
to
that
and
I
believe
in
a
lot
of
ways
it
does.
These
boards
have
a
tradition
of
a
decades-long
tradition
of
being
politically
independent
and
quite
powerful,
and
and
therefore
they
have
been
able
to
invest
in
their
infrastructure,
necessary
infrastructure
as
a
matter
of
public
trust.
Yes,
there
are
people
there
who
do.
B
There
are
plenty
of
people
in
the
public
who
don't
want
to
see
rate
increases,
and
indeed
that
political
pressure
is
one
of
the
very
large
reasons
that
PWSA
has
ended
up
in
the
hole
that
it's
in,
but
some
cities
do
find
ways
to
address
that
in
this
case,
we
believe
that
something
bold
is
needed.
With
regard
to
governance,
we
believe
that
the
city
should
establish
a
non-profit
public
trust
based
on
the
Indianapolis
model,
but
with
a
value-based
charter
that
provides
greater
public,
greater
and
more
consistent
public
input.
B
We
believe
that
cities
should
appoint
a
high
profile
should
appoint
high
profile
trustees
that
govern
the
trust
and
appoint
their
board
of
directors.
We
believe
that
PWSA
is
assets
and
operations
are
to
be
transferred
in
a
manner
that
moves
the
assets
and
operations
front
from
political
influence
and
that
it
established
and
that
rate
setting
would
be
then
be
regulated
by
the
state,
Public
Utilities
Commission,
on
a
rate
on
a
rate
case
basis.
B
B
How
would
that
work?
This
graphic
shows
that
it's
actually
a
multi-step
process
in
step.
One
the
city
creates
a
new
non,
a
new
nonprofit
public
trust,
the
terms
of
that
trust
need
to
be
specific
to
Pennsylvania
law,
but
they
can
also
be
quite
different
from
Indianapolis,
depending
upon
how
the
creators
of
that
trust
wish
to
imbue
the
trust
with
it
with
the
values
its
charter
organizations
do
pay
attention
to
their
charter.
They
are
guided
by
it.
B
B
Rameters,
that
might
be
the
parameters
would
include,
for
example,
labor
protection
protections.
The
city
of
Pittsburgh
has
a
long
tradition
of
upholding
organized
labor,
and
that
certainly
is
a
value
that
could
be
written
into
the
Charter,
creating
the
trust.
Likewise,
it's
a
pittsburgh
has
a
strong
green
infrastructure
focus
that
could
be
written
into
the
trust
as
well,
calling
for
a
fair,
conceivably,
a
fairly
detailed
guidance
to
always
include
green
infrastructure
in
its
deliberations.
B
Another
is
to
protect
low-income
households
in
dealing
with
rate
increases,
and
that's
that's,
certainly,
an
issue
that
ought
to
be
at
the
top
of
everyone's
agenda,
considering
the
rate
increases
that
are
coming
due
in
the
organization
with
with
essentially
four
billion
dollars
of
infrastructure
improvements
needed
over
the
next
30
years
on
a
consumer
base,
that's
only
a
hundred
and
thirty
thousand
households,
so
all
of
those
values
need
to
be
incorporated
in
the
creation
of
the
trust.
This
is
not
Indianapolis.
The
trust
wasn't
created
130
years
ago
to
escape
Standard
Oil.
This.
B
B
The
board
of
trustees
would
be
a
if
their
terms
could
depend
upon
whatever
the
city
decides,
they
should
be
with
the,
but
ultimately
that
board
the
number
for
the
trust
to
become
self
perpetuating
and
for
the
board
to
become
self-perpetuating
to
remove
it
fully
from
political
and
political
influence.
The
board
of
trustees
then
begins
to
appoint
itself
at
some
point
in
the
future
and
at
the
very
beginning,
it
appoints
a
Board
of
Directors.
The
board
of
directors
is
actually
much
more
involved
in
the
day-to-day
operations
of
the
utility.
B
B
E
How
do
we
then
ensure
that
that
delegation
of
individuals
that
that
comes
from
an
a
political
process-
it
is
representative
of
the
community,
because
you
talked
about
it
being
a
very
powerful
board,
and
so
how
does
that?
How
would
you
envision
that
structure
to
occur
in
terms
of
identifying
those
initial
Board
of
Trustees,
which
is
really
crucial,
I
thinking,
yeah.
B
Particular
model
well,
this
is
actually
an
opportunity
for
the
city
to
ensure
that
it
gets
that
the
community
gets
exactly
what
it
wants
out
of
those
appointments.
I
would
hesitate
to
say
that
I
wouldn't
necessarily
say
that
the
the
Charter
should
include
that
the
Trust
Board
of
Trustees
shall
include
this
kind
of
person
and
this
kind
of
person.
B
With
this
background
and
this
expertise
and
things
like
that,
but
rather
that
the
the
mission
statement
for
the
Board
of
Trustees
say
something
to
the
effect
that
it
is
representative
of
the
representative,
the
community
and,
of
course,
then
leave
it
to
the
people
making
the
appointments
to
make
to
ensure
that
that
representation
is.
Is
there
either
through
the
city
or
well
through
the
city,
of
course,
but
through
the
mayor
of
the
City,
Council
and
whomever?
B
A
Just
added
them
sure
I
think
that's
the
key
issue
here
and
perhaps
the
panel
can
provide
guidance
in
response
as
to
what
the
parameters
of
the
selection
of
the
trust
is.
You
know
the
challenge
of
we're
moving
it
from
the
political
cycle.
Is
it
you're
moving
from
the
political
cycle
cycle,
but
if
you
have
a
sort
of
an
administration
that
wants
to
you
know,
hire
Ward
chairmen
and
put
them
into
jobs
at
PWSA
or
misuse
and
not
fund?
A
You
know,
for
example,
as
we've
seen
in
the
past,
that's
one
of
the
backsides
of
being
subject
to
the
political
cycle,
so
I
think
as
part
of
the
implementation
of
the
Auditor
General's
recommendations.
If
this
is
a
path
of
corporate
governance
that
we
collectively
wanted
to
go
down,
I
think
I.
Think
your
question
is:
how
do
you
initially
select
that
trust
board
and
then
how
does
that
board
for
Pecha
wait
itself
in
in
a
sort
of
inclusive
manner,
with
respect
to
all
the
stakeholders?
A
C
C
B
Not
one
board
I
can
tell
you
why
Indianapolis
did
it
and
actually
it's
Abreu
surprisingly.
Well,
the
board
of
trustees
really
are
trustees.
They
don't
really
have
a
role
in
the
day-to-day
management.
They
view
themselves
as
having
a
higher
level
mission
that
doesn't
go
too
far
beyond
the
mission
statement
of
the
trust
and
it
they
and
so
it's
a
relatively
large
group.
The
board
of
trustees
is
larger
than
the
Board
of
Directors
and
that's
by
design.
It
means
the
authority
to
appoint.
F
B
It
depends
upon
the
nature
of
what
you
want
your
board
to
do.
As
I
said,
there
are
some
boards
which
are
high-level
boards.
There
are
other
boards
which
are
managing
boards,
and
managing
board
doesn't
mean
by
the
way
that
you
have
a
neutered
executive
director.
It
means
that
you
simply
have
some
a
group
of
people
who
spend
Allen
tear
a
lot
of
their
time
and
develop
a
certain
governance
level,
expertise
in
the
operations,
maintenance,
asset
management
and
capital
to
capital
programs.
Tulsa
is
one
of
those
boards.
B
Now
I
mentioned
Nashville's
Airport,
which
is
surprising
because
those
folks
on
the
Nashville
Airport
board
include
the
CEOs
of
some
of
the
largest
companies
in
Nashville.
Yet
that's
a
managing
board.
So
again,
it
depends
on
the
expectation,
I
think
that
I
think
it's
a
healthy
thing
to
have
a
managing
board
and
not
just
to
rely
on
an
executive
director.
B
We've
worked
with
tons
of
authorities,
different
kinds
of
authorities,
water,
sewer,
Airport,
and
you
never
want
the
fate
of
your
authority
of
your
of
your
authority
to
come
down
to
the
personality
of
the
executive
director
personnel
capability
of
the
executive
director
as
nice.
As
that
sounds
fine,
it
just
makes
the
system
vulnerable.
C
C
Helpful
was
basically
their
conclusion
now,
whatever
you
do,
it's
gonna
require
cooperation
by
the
city
in
PWSA.
Yes,
that
is,
there
may
be
authorities
under
admissible
authorities,
Act
etc.
But
in
the
end,
if
we
don't
have
that
cooperation,
that
is,
if
everybody
doesn't
agree,
we're
not
gonna,
be
able
to
get
this
done.
B
It
it
what's
challenging
is
the
transfer
of
the
assets
more
challenging,
I
should
say
the
transfer
of
the
assets
and
the
authority
into
the
trust,
not
that
that's
it
just
takes
time
to
do
that,
creating
the
trust
that
that's
why
the
step,
why
is
the
creation
of
the
trust,
the
simply
the
creation
of
the
trust
and
appointing
a
board
of
trustees
is
a
relatively
quick
first
step
from
there.
You
have
to
go
a
little
further
in
terms
of
trait.
You
should
be
transferring
assets,
obligations,
operations,
various
authority,
things
like
that.
C
Did
I
keep
going
I
have
one
more.
I
promise
kept
muscle
or
the
last
one
so
back
to
the
board
of
trustees
or
the
board
of
directors,
and,
let's
assume
me
up
both
mm-hmm
the
their
argument
for
trust
on
the
part
of
the
public.
Is
we've
got
high-profile
people
that
have
earned
the
respect
and
trust
of
the
public
and
therefore
they'll
trust
the
authority.
C
That's
different,
of
course,
from
actual
public
input
and
what
one
of
the
virtues
of
some
measure
political
control
is.
The
mayor
can
always
recall
or
fire
the
board
members
that
he's
appointed
when
you
have
a
public
trust
with
its
own
self-perpetuating
board.
Is
there
such
a
mechanism,
I
mean?
Could
the
public
call
for
a
recall
or,
and
then
I
can.
B
B
A
Say
Jerry
to
that
question
and
I'm
not
a
trusting
the
state's
lawyer,
but
presumably
you
can
establish
a
trust
that
a
nurse
of
the
benefit
of
the
residents
of
the
city
of
Pittsburgh
that
has
very
specific
guidelines
in
the
trust,
respect
that
govern
the
operation
of
these
assets,
to
include
some
of
the
things
that
Steve
mentioned.
That
also
include
definitions
of
cause
for
trustees
to
be
removed
upon
some
moving.
A
You
know
in
the
like,
so
all
of
those
things
go
through
orphans
courts,
so
we
have
not
yet
delved
into
the
legal
machination
zuv
what
it
would
take
to
set
up
this
trust
other
than
to
say
that
you
know,
based
upon
this
initial
kind
of
conversation,
I
think
it's
interesting
for
us
to
look
at
this
option
is
a
way
to
as
the
Auditor
General
mentioned,
D
politicize
politics
has
clearly
caused
some
of
the
problems
that
we
have
at
PW
say.
There's
no
doubt
in
my
mind.
A
When
we
took
office
we
had
no-show
jobs
for
political
people.
You
know
word
share'
persons
who
had
worked
there
for
years.
We
all
know
that.
That's
that's
happened.
It
has
not
happened
under
a
watch
and
I
think
D
politicizing
this,
while
keeping
this
asset
in
this
system
accountable
to
the
public.
This
is
a
worthwhile,
in
my
mind,
structure,
to
at
least
for
us
to
consider.
B
B
B
They're,
a
healthy
new
person
I'm,
not
certain
specifically
about
Indianapolis,
but
that
is
certainly
something
that
would
you
would
want.
I
would
think
you
would
want
that
to
have
a
regular
rotation
staggered
terms
once
it
gets
happen
going
on.
So,
let's,
with
regard
to
regionalization
HR,
the
trustees
have
the
ability
to
themselves
to
dissolve
the
trust
subject
to
requirements
of
the
Charter,
creating
the
trust
such
that.
If
there
were
ever
a
regional
authority
in
the
created
in
the
Greater
Pittsburgh
metropolitan
area,
then
the
trust
would
not
be
a
barrier
to
that.
G
B
G
B
B
G
I
wanted
to
become
more
up
in
your
presentations.
I
guess
is
what
I'm
saying,
because,
because
you
know
in
the
end,
I
think
we
all
agree
that
our
solutions
have
got
to
be
regional,
whether
it's
dirty
water,
clean
water
or
storm
or
storm
water.
So
what
we're
really
trying
to
do
is
to
create
the
environment
in
which
that
can
occur.
G
So
there's
a
there's,
a
there's,
an
end
game
here
or
for
us
to
consider
whatever
arrangement
so
that,
even
if
the
trust
understands
that
its
long-term
objective
might
be
exactly
that
to
go
out
of
business
and
we've
articulated
that
I'm
a
lot
more
comfortable
with
that,
then
creating
an
instrument
that,
oh
by
the
way,
if
they
wanted
to
they,
could
they
could
do
that
once
you
create
something.
It's.
B
B
With
it
with
the
change
in
government,
the
assistant
at
turtle
improvement
option
becomes
even
more
feasible
because
the
trust
is
much
freer
in
terms
of
the
act
of
its
activities
and
with
regard
to
rates
as
well
to
execute
an
improvement
plan,
and
that's
one
of
the
objectives
of
setting
up
the
the
independent
trust
in
this
structure.
This
shows
what
can
be
accomplished
under
an
internal
improvement
structure.
B
This.
Essentially,
these
orange
boxes
really
are
talking
about
the
points
of
vulnerability
in
PWSA,
and
so
in
each
of
those
boxes.
You
see
tools,
but
this
is
basically
a
tool
kit
for
PWSA
to
use
in
order
to
achieve
and
maintain
a
higher
level
of
performance.
There
is
one
key
ingredient
here
and
that
is
changing
the
lease
agreement
between
PWSA
and
the
city
into
a
contractual
into
a
performance
contract
document
that
performance
contract
document
begins
with
a
and
you
can
see
the
yellow
circle.
B
It
is
the
strategic
plan
is
a
long-term
contract.
The
Act,
the
annual
utility
performance
agreement,
is
a
annual
contract,
the
performance
parameters
and
the
action
items
in
the
business
plan
get
written
into
the
budget
and
Human
Resources
working
groups,
essentially
making
sure
that
the
budget
that's
established
adheres
to
the
long
term
objectives
of
the
business
plan
to
which
the
city
and
PWSA
have
agreed,
or
in
this
case
it
can
be.
This
can
be
done
without
a
trust,
I'm.
Sorry,
the
third
element
is
support
service
contracts.
The
city
of
Pittsburgh
provides
support
services
to
the
PWSA.
B
That's
actually,
surprisingly,
common
out
there,
where
a
city
department
city
will
what
has
different
types
of
departments,
Human,
Resources
legal
procurement
etc,
which
the
which
the
Authority
uses
to
provide
those
support
services,
and
invariably
the
utility
Authority,
often
believes
that
those
services,
the
quality
of
those
services
or
responsiveness
of
the
services
of
the
price
of
those
services,
leaves
a
lot
to
be
desired.
So
in
this
case
those
standards
are
negotiated
upfront
again
in
the
form
of
an
amendment
or
a
component
of
the
larger
annual
performance
agreement.
B
The
fifth
is
an
optimized
operations
and
maintenance
protocol
and
CIP
again
driving
out
of
the
budget,
but
based
on
some
very
important
systems
and
specifically
a
strategic
asset
management
system
and
protocols
of
criticality
analysis.
I
will
say
that
a
lot
of
utilities
think
they
do
it
right,
but
I
don't
believe
they
do.
B
We
have
a
lot
of
experience
in
working
with
a
lot
of
different
types
of
infrastructure
facilities
and
the
asset
management
systems
that
we
see
out
there
and
then
that
are
believed
to
be
in
protocols
specifically
that
people
believe
it
to
be
high-quality
and
state-of-the-art
are
typically
the
for
example.
Those
are
shunned
by
private
operators
and,
in
fact,
they've.
They
have
systems
because
the
the
bottom
line
nothing.
It
doesn't
matter
to
a
public
authority,
but
it
is
of
direct.
B
It
is
a
mission
for
a
private
entity
and
therefore
the
strategic
asset
management
systems
employed
by
private
operators
and
the
protocols
they
use
for
developing
asset
registries
hierarchies
and
conducting
criticality
and
risk
analysis
are
considerably
more
advanced
than
the
typical
there's
municipal
utility.
Those
types
of
systems
have
value
in
a
public
system
if
they
are
adopted.
There
vii
is
new
information
governance
tools.
If
you're
going
to
give,
if
you're
going
to
have
a
board,
that's
going
to
be
a
managing
board
and
that's
going
to
be
fully
informed.
B
It
needs
to
have
reliable,
thorough
and
up-to-date
information
on
the
performance
of
utility
in
all
respects.
The
most
basic
of
that
is
a
monthly
operating
report.
That's
a
basic
report
on
the
functioning
of
the
utility
in
terms
of
doing
its
job,
to
clean,
to
provide
clean
water
and
to
clean
the
wastewater.
The
the
notion
is
that
the
performance
information
system
rolls
up
into
a
specific
governance
tool.
So
when
the
board
members
come
into
a
meeting
every
two
weeks,
they
have
in
front
of
them
several
sheets
of
paper
on
those
sheets
of
paper.
There
are
dashboards.
B
There
are
summary
measures
and
pretty
much
the
individual
board
member
who
really
only
requires
about
15
minutes
to
read,
to
read
the
report
and
understand
it,
especially
if
they've
been
seen
every
two
weeks
become
extremely
well
informed
about
what
the
utility
is
up
to
and
how
is
a
track,
how
it
is
tracking
toward
that
utilities.
Strategic
objectives,
not
just
that's
the
budget
year,
that's
included
too,
but
also
toward
its
strategic
objectives
and,
finally,
to
go
along
with
that.
The
there
is
some
great
value.
B
Not
all
boards
have
to
have
it,
there's
some
great
value
in
having
a
board
coordinator,
individual
or
more,
who
has
specific
an
analyst
who
is
specifically
empowered
and
capable
of
supporting
the
board's
decision
making,
even
and
publicly
privately,
and
to
provide
them
the
type
and
performance
information
and
recommendations
that
they
require.
This
is
not
a
substitute
for
an
executive
director.
B
B
However,
experience
shows
that
if
you
want
to
operate
the
utility
at
a
very,
very
aggressive
level,
where
every
person
were
as
a
as
an
anecdote,
every
person
in
the
utility
every
manager
ever
staff
person
comes
in
everyday
thinking.
How
can
I
make
this
work
better
and
their
system
is
there
to
help
them
and
and
help
them
and
encourage
them
to
do
that?
How
can
I
save
money?
How
can
I
work
to
hold
down
rates
now?
B
Those
internal
improvements
are
at
risk,
not
all
of
them,
but
those
internal
improvements
are
at
risk
of
slippage.
There
is
a
client,
for
example,
who
we've
advised
for
a
number
of
years,
who
was
subjected
to
a
privatization
threat,
and
indeed
that's
why
they
hired
us
to
keep
them
from
being
private,
and
so
we
brought
in
our
our
folks
and
our
experts,
and
we
helped
them
through
this
process
and
for
a
while
they
were,
they
were
terrific.
They
were
saving
lots
of
money.
They
were
dramatically
improving
their
their
environmental
compliance
records.
B
There
was
a
new
culture
that
had
taken
hold,
but
over
time
now
into
the
fifth
or
sixth
year
of
it.
Somehow
the
business
plan
isn't
as
detailed
as
it
used
to
be
the
annual
business
plan.
The
performance
measure
system
measures
aren't
used
as
often
the
rigorous
process
established
for
asset
management
just
takes
too
much
time
and
the
inputs
into
the
maintenance
management
system.
Well,
you
know
it's
just
a
lot
easier
to
go
back
to
the
to
a
more
basic
level
where
you're
not
using
the
full
capacity.
B
B
There
are
some
pretty
good
systems
out
there
that
have
done
that
with
pretty
good
success.
I'll
cite
one,
and
that
was
the
City
of
Milwaukee,
which
I
probably
mentioned
before,
where
they
outsource
their
operations
and
maintenance.
Now
the
City
of
Milwaukee
was
quite
different
than
the
Milwaukee
metropolitan
sewers.
It
was
quite
different
than
PWSA
for
one
everything.
It
was
an
operating
entity
and
it
treated
sewer
sewage.
It
also
produced
milorganite
I
think
for
anybody
who
has
golf
it
plays
on
golf
courses
around
here.
You
might
be
familiar
with
the
bags
of
that
stuff.
B
It
all
comes
out
of
Milwaukee
and
it
all
comes
from
the
waste
generated
from
wastewater
treatment.
It's
very
good
stuff
I
can
assure
you,
but
they
decided
they
had
a.
They
had
an
operation
that
actually
had
won
national
awards.
The
staff
were
were
fairly
well
qualified
when
we
did
a
review
of
the
operations.
We
actually
couldn't
find
a
whole
lot
wrong
with
it
other
than
we
thought
it
was
expensive.
So,
but
Milwaukee
decided
that
it
was
going
to
outsource
that
and
they
did
and
there
had
a
number
of
large
national
firms
competing.
B
The
staff
declined
to
compete
and
when
they
did,
they
achieved
operating
savings
operations
and
maintenance.
Savings
on
a
I
believe
was
a
total
of
a
three
hundred
million
dollar
budget
of
thirty
five
percent,
which
allowed
them
to
lower
sewer
rates
by
seventeen
and
a
half
percent
I
used
that
as
an
example
in
one
of
the
more
successful
example,
because
Milwaukee
has
continued
to
renew
that
contract
or
rebid
it
and
they
still
stay
with
private
operators.
The
employees
became
employees
of
the
operating
company.
Their
pay
and
benefits
did
not
diminish.
B
In
fact,
actually,
once
liberated
from
municipal
pay
scales
that
went
up,
the
compensation
went
up
for
most
of
the
skilled
labor
and
they
also
actually
take
the
back
at
well.
I
went
up
for
the
lower
skilled
labor
because
the
the
they
had
an
excessive
turnover
among
the
lower
skilled
staff,
and
they
the
turnover,
is
very,
very
costly,
and
that
was
rectified
as
a
part
of
the
outsourcing
of
operations
and
maintenance.
B
B
B
The
next
option
is
the
infrastructure.
Only
lease
in
this
particular
case,
the
PWSA
board,
remains
in
place.
The
assets
remain
publicly
owned.
The
operations
remain
publicly
operated.
The
maintenance,
especially
particularly
the
routine
maintenance
and
minor
repairs,
remains
public,
but
what
is
the
partnership
involves
the
capital
improvement
program,
which
means
that
the
city
would
set
goals
for
the
what
the
for
the
infrastructure
improvements
over
time.
It
would
seek
plans
for
those
infrastructure
improvements
and
then
seek
a
time
certain
schedule
for
those
improvements
and
a
price
certain
schedule
for
those
improvements.
B
The
advantage
of
this
structure
is
that
it
removes
a
great
deal
of
the
uncertainty.
You
know
the
infrastructure
is
going
to
get
built
and
when
it's
going
to
get
built
and
how
much
it's
going
to
cost
private
entity
takes
the
risk
that
it
will
be
able
to
deliver
those
facilities
at
a
certain
deliver
and
and
maintain
the
assets
at
a
fixed
cost,
fixed
annual
cost
over
time.
B
The
compensation
is
not
the
rate
can
roll,
it
means
with
the
public
side,
the
the
partner
is
compensated
with
an
availability
payment
which
says,
essentially,
if
you
make
this
structure
available,
if
you
make
these
improvements
available
on
a
time
certain
and
functioning
according
to
these
performance
standards,
and
only
if
you
make,
if
you
do
that,
we
will
pay
you
an
annual
payment
from
the
utility
budget.
They
do
not
have
control
over
rate
pay
over
rates.
What
this
does
is
it
gives
the
utility
a
long-term
assurance
about
what
its
capital
costs
are
going
to
be.
B
It
gives
you
a
performance
guarantee.
It
gives
the
public
assurance
that
those
facilities,
including
green
infrastructure,
will
be
put
into
place
what
will
be
put
into
place
and
when
they
will
go
in,
given
the
tremendous
needs
of
PWSA,
that
kind
of
assurance
can
be
very
valuable
and
indeed
the
techniques
that
private
entities,
private
infrastructure
providers
can
use
under
this
structure
involve
a
number
of
different
innovative
procurement
processes
and
advantages
that
are
simply
not
available.
B
On
the
municipal
side,
we
have
seen
these
from
these
processes
result
in
overall
capital
improvement
program
savings,
ranging
from
as
little
as
twenty
percent
up
to
as
much
as
30
percent
or
more.
It
comes
from
a
me
essentially
having
one-stop
shopping
for
the
design,
building
contracting,
sharing
the
risks
among
the
contractors
living
with
fixed
price
contracts
and
reconstruction
contractors
very
little
allowance
for
change
orders
and
a
long-term
financial
interest
in
the
proper
management
of
those
assets.
It
all
leads
to
a
generally
lead,
so
a
lower
life
cycle
cost
for
those
facilities.
B
The
capital
improvement
program
would
look
like
if
it
were
done
through
methods
allowing
for
risks
and
looking
where
risks
fall,
and
then
seeing
how
that
compares
to
the
proposals
being
made.
That
assures
the
that
assures
the
city
that
the
decision
being
made
is
cost-effective.
If
I
would
say
that
public
sector
comparator
shows
that
there's
only
about
a
five
seven
percent
savings,
it's
not
worth
it,
but
if
it
shows
larger
savings
and
there's
a
belief
that
those
savings
could
be
tremendously
beneficial
to
the
ratepayers
it
for
of
PWSA,
then
that
is
certainly
an
option
to
consider.
B
This
option
can
also
include
the
payment
of
an
upfront
payment
which
is
not
unusual
for
these
types
of
structures,
both
full
concession
infrastructure
commissions.
There's
an
upfront
payment
of
some
kind
that
payment
could
be
quite
large
if
you
want
it
to
be
large,
but
if
you're
going
to
set
up
something,
let's
say
you
were
going
to
set
up
a
trust
fund
and
let's
say
that
that
was
trust
fund
was
going
to
be
50
to
100
million
dollars.
B
The
full
proceeds
of
them
upfront
payment
from
the
lessee
that
trust
fund
could
be
used
to
ought
to
permanently
offset
and
and
provide
assistance
to
low-income
households
for
their
as
rates
continue
to
rise
dramatically
over
the
years.
That
trust
fund
would
not
go
away.
The
income
from
rent
would
be
a
strong
source
of
revenue,
dedicated
source
of
revenue
for
those
low
income
households.
B
B
The
next-to-the-last
option
here
is
the
full-service
lease
concession,
it's
similar
to
the
infrastructure,
only
lease,
but
you
can
see
that
if
you
go
back
and
compare,
the
gray
area
shows
the
area
that
the
private
entity
controls
or
is
responsible
for,
let's
say-
and
you
can
see-
that's
relatively
limited
in
the
full-service
lease
the
gray
area
is
much
larger,
now
rate
setting
and
ownership
of
the
assets
is
still
in
public
hands.
The
lease
agreement
includes
performance
standards,
relatively
strict
performance
standards
rates
are
established
by
formula
or
pre-arranged
agreement.
B
Of
course,
this
is
a
long-term
lease.
Those
in
the
formulas
essentially
make
sure
are
simply
designed
to
ensure
that
ratepayers
get
a
fair
shake.
That
rates
are
as
low
as
reasonably
possible
and
established
under
a
competitive
process
and,
as
I
said,
we
would
also
employ
a
public
sector
comparator
in
this
model.
As
well
and
again,
you
see
the
opportunity
for
upfront
payments
now.
I
want
to
say
the
least.
Payment
in
this
case
varies
considering
the
lease
payment
in
the
infrastructure
only
option
in
the
infrastructure
only
option.
B
The
private
entity
is
paid
and
availability
payment
based
upon
the
availability
and
quality
of
the
infrastructure
provided
in
this
scenario,
the
payment
is
actually
very
much
rate
based,
which
means
rates
the
the
income
flows
through
the
PWSA
into
the
private
entity,
but
it's
set
according
to
a
formula.
The
private
entity
cannot
raise
rates
other
than
what's
allowed
in
the
formula
and
ultimately,
that
formula
is
established
by
the
public
side.
B
Would
generally
be,
there
are
a
number
of
domestic
private
operators,
but
in
terms
of
those
capable
of
actually
employing
that
much
capital
you're
talking
about
an
entity
capable
of
every
being
able
to
responsibly
implement
a
four
billion
dollar
capital
improvement
program.
In
addition
to,
in
addition
to
the
operations
there
aren't
that
many
entities
that
are
capable
of
doing
that,
I
would
say
globally.
B
B
Personally,
I,
don't
like
that,
if
all
you're
doing
is
trying
to
cash
out
on
ratepayers,
then
that's
not
the
right
thing
to
do,
and
that's
certainly
not
the
objective
for
the
city
of
Pittsburgh.
Here
it
does
rate
the
effectively
when
the
when
those
towns
and
that
Bayonne
New
Jersey
is
another
one.
When
they
execute
a
day.
This
type
of
structure
they
did
so
primarily,
though,
not
entirely
primarily
to
provide
money
for
their
general
fund
and
I.
Think
that's
always
get
you
into
trouble
sort.
B
B
B
I
mean
the
system
has
a
lot
of
needs
in
it,
so
the
sale
could
be
for
zero,
but
you
could
the
sale
proceeds
could
be
50
million
100
million
whatever,
but
since
the
city
doesn't
want
to
take
any
money
out
of
this
deal
for
the
general
fund,
those
payments
that
payment
upfront
payment
can
be
used
to
set
up
a
trust
fund
to
the
type
that
I
described
earlier.
Permanent
trust
fund.
B
You
see
here
that
the
the
primary
regulatory
mechanism
is
the
state
Public,
Utilities
Commission
and
there
it
also
includes
a
local
Citizens,
Advisory
Committee,
which
communicates
with
the
PUC
in
in
a
fairly
well-established
manner.
You
can
see
the
service
economies
there
now.
This
is
a
good
time
to
point
out
that
one
of
the
things
that
we
did
was
we
model.
The
rate
increases
that
we
thought
would
occur
could
occur
under
each
of
these
scenarios,
starting
with
the
baseline,
proceeding
through
the
internal,
the
internal
improvement
and
then
on
to
the
various
options.
B
There
were
a
number
of
variables
in
that
analysis,
logical
variable,
so
that's
I,
think
you
can
understand
in
cases
where
the
existing
taxes
and
debt
was
diffused.
That
obviously
was
a
high
upfront
cost,
and
so
we
included
those
cost
in
the
model
and
by
the
way,
in
all
scenarios,
we
assumed
that
the
non-revenue
water
to
primarily
to
nonprofit
entities,
was
recovered
by
PWSA,
and
that
result
in
at
about
a
7%
increase
in
revenue
over
the
current
system
for
all
scenarios,
we
also
took
into
account
the
structure
of
the
financing
the
options.
B
B
Essentially,
you
have
a
in
that
example,
and
I
won't
go
into
detail
because
it
is
complicated.
You
have
a
senior
tranche
of
tax
exempt
debt
which
is
relatively
low
cost,
and
then
you
have
a
subordinated
tranche
of
tax
exempt
debt,
which
is
at
a
higher
rate
and
the
private
entity.
Investors
by
that
that
subordinated
debt
in
effect
acting
as
equity,
but
that's
their
income.
B
This
is
a
much
steadier,
much
more
predictable,
much
safer
investment,
which
is
one
of
the
reasons
why
some
of
the
folks
out
there,
who
are
looking
very
seriously
at
pittsburgh's
and
specifically
at
Pittsburg,
include
Union
pension
funds
who
are
looking
to
put
their
funds
into
a
predictable,
reliable
source
of
revenue
and
they
have
sufficient.
And
in
this
case
they
have
sufficient
confidence
in
the
private
entity
that
they
are
willing
to
invest
their
union
members
money
in
this
asset.
So.
B
B
B
Now,
back
to
the
revenue
contribute
to
the
rate
payer
impact
analysis.
Generally
speaking,
the
mid-level
term
rates
or
household
rates
were
in
the
500.
The
500
dollar
per
month
range
for
all
of
the
scenarios.
It
is
roughly
comparable
to
P
WSA's
current
forecast
of
around
four
hundred
and
sixty
dollars
per
per
household.
Now
remember
what
we
did.
B
We
took
a
revenue
requirement
and
divided
a
by
about
eighty
thousand,
because
that
was
the
the
right
denominator
to
use,
and
so
there
was
since
there
was
some
significant
variance
and
I
won't
go
into
those
now
and
we
can
sit
down
and
talk
about.
Those
numbers
at
some
point.
Suffice
to
say
that
the
infrastructure,
our
only
scenario,
the
full
concession
scenario,
the
introduction
infrastructure,
only
concession
had
lower
rates
than
the
baseline
or
the
internal
improvement
option.
B
The
it
was
a
close
call
on
the
infrastructure
only
that
there
sued
me
the
on
the
full
service
infrastructure,
largely
because
they
would
have
to
diffuse
the
existing
debt,
replace
it
with
taxable
financing
that
was,
the
primary
driver.
You've
got
to
breed
you
can't
you've
got
to
be
pretty
efficient
to
be
able
to
offset
that
cost,
and
we
assume
that
we
ascertain
something
fairly
basic
efficiencies
there,
but
nothing
dramatic
the
only
place
where
we
saw
an
earth-shaking
difference
in
rates.
Projected
rates
was
on
this
scenario,
and
it's
fairly
simple
to
understand
in
that.
B
If
you
take
the
four
billion
dollars
in
capital
improvements-
and
you
divide
it
by
a
much
larger
number
of
customers,
you
get
a
lower
number,
don't
get
the
full
effect,
because
a
lot
of
the
cost
is
sewer
in
stormwater
and
that
you
can't.
You
can't
spread
those
costs
around
to
the
through
water
customers,
but
there
were
significant
economies
there,
and
so
our
conclusion
was
that
this
scenario
would
actually
offer
the
lowest
rates
and
demonstrably
so
compared
to
all
of
the
other
options.
Can.
B
Have
efficiencies
that
the
water
companies
don't
have
customer
service,
for
example,
main
replacement
repair?
All
of
those
things
have
you
know.
Other
utilities
have
very
strong
efficiencies
in
that
regard,
but
it's
simply
the
size
of
the
rate
base.
Now.
Is
the
PUC
allow
this
to
would
to
spread
this
cost
around
the
rest
of
the
state?
B
This
check
box
is
simply
to
say
that
they
can
be.
Maybe
they
should
be
part
of
your
consideration
in
that,
starting
with
rate
payer
impact,
of
course,
but
also
including
accountability.
Performance
improvement
guarantees
to
be
absolutely
certain,
contractually
certain
or
not
contractually
certain
that
the
performance
is
going
to
improve
that
the
facilities
are
going
to
be
deliver.
The
improvements
are
going
to
be
made,
the
green
infrastructure
is
going
to
be
employed,
etc.
B
B
The
legal
and
financial
feasibility
of
the
alternatives,
I
think
the
legal
analysis
we
did
establish
that
all
of
these
are
legally
feasible.
The
ease
and
speed
of
implementation-
you
don't
want
to
get
hung
up
or
have
a
slow
process
here
and
finally,
the
durability
of
the
change,
which
is
very
important.
Steve.
B
C
I
had
a
question
for
Christine
yeah
I
thought
I
would
save
to
the
end,
but
since
it
bears
so
directly
on
this
I
think
I
have
to
ask
it
now.
I
was
surprised
at
health
and
safety
was
fourth
on
the
list.
Could
you
give
us
some
insight
into
that
and
and
Steve
where
I'm
going
with
this?
Is
it's
also
not
on
it's
not
on
this
list
at
all?
I'm
sorry,.
C
B
C
C
C
D
C
D
D
J
I
C
C
B
B
B
The
I
think
it
also
reflects
the
consensus
of
of
the
city
that
they
would
like
to
do
that.
That's
if
it's
possible
the
importance
of
making
governance
fully
independent
of
partisan
political
influence
is
a
driving
factor.
The
Auditor
General's
report
simply
confirmed
our
belief
that
that
was
important.
We
also
thought
the
need
for
immediate
unrestricted
redress.
B
We
benefit
that
before
we've
served
as
as
a
as
an
agent
of
the
Special
Master
whenever
in
various
receiverships,
meaning
that
we,
the
adviser
on
telling
them
how
to
run
their
utilities
when
it
was
under
court
control
and
I
can
tell
you
that
once
it's
under
court
control,
there's
you
can't
even
the
saying
goes.
You
can't
pick
up
a
pencil
and
sharpen
it
without
approval
from
the
judge
the
importance,
the
desire
to
keep.
B
B
B
What's
really
important
to
us
is
keeping
the
infrastructure
publicly
owned,
but
for
the
regulator's
out
there,
who
really
don't
care,
whether
it's
public
or
private,
whether
it's
leased
or
whether
it's
owned
by
somebody
else,
they
care
about
those
improvements,
those
Corrections
being
made
on
a
time
certain
performance
certain
basis
and
that's
why
we
included
that
here
the
desire
to
create
large,
permanent,
irrevocable
trust
fund
to
assist
low
income,
households
with
large
and
imminent
rate
increases.
Now
there
are
several
different
strategies
for
assisting
low
income,
households,
some
of
which
are
under
some
legal
challenge.
B
Actually,
the
notion,
you
can't
have
two
classes
of
customers
and
some
attempts
have
not
survived
court
challenge
in
that
regard.
So
it's
always
a
delicate
process
to
do
that
and
it
begs
for
a
permanent
solution,
because
this
is
a
permanent
problem.
Low
income,
households
20
years
from
now
30
years
from
now,
are
still
going
to
be
low
income
and
higher
water
and
sewer
rates
substantially
higher
in
what
our
sewer
rates
are
still
20
to
30
years
from
now
going
to
affect
them
disproportionately.
B
This
is
a
problem
that
begs
for
a
permanent
solution,
and
so
creating
a
trust
fund
that
can
be
accessed
in
that
way
was
an
important
part
of
our
consideration
to
making
a
recommendation
and,
finally,
a
desire
to
codify
Pittsburgh's
green
effort
sector
commitment
into
a
long-term
binding
contract.
Now,
whether
that's
a
contract
between
the
city
and
the
or
and
PWS
I
PWSA,
or
between
the
city
and
the
trustor,
it's
embedded
in
a
charter
in
a
charter,
trust
charter
agreement
or
it's
in
a
contract
or
a
lease
agreement
that
says
apparently
fairly
specifically.
B
B
While
other
pieces
of
the
improvement
initiative
are
going
on,
we
expect
that
that
PWSA
is
current
management
would
be,
would
not
change
than
in
fact.
It
would
be
a
participant
in
this,
an
active
participant
in
this
process
and
would
enjoy
the
benefits
of
being
protected
from
the
barriers
that
have
briefed
that
have
previously
limited
their
ability
to
improve
PWSA,
to
transfer
operations,
to
a
public
to
issue
an
RFP
for
an
employer,
only
lease
that
would
preserve
public
ownership
of
the
system.
B
B
The
conditions
of
the
transfer
to
the
trust
and
to
the
infrastructure
lessee,
would
include
a
public
accountability,
vehicle
or
supplements
the
Board
of
Trustees,
a
PUC
rate
and
customer
service
regulation.
The
PUC
actually
gets
involved
in
more
than
rate
regulation.
It
also
gets
involved
in
service
quality.
B
The
performance
improvement
targets
become
guarantees,
they
become
codified
in
both
agreements.
Green
infrastructure
goals
are
guaranteed,
labor
protection
is
guaranteed,
low-income
household
protection,
trust
fund
is
established
and
guaranteed,
and
the
residential
LED
line
replacement
assistance
can
be.
We
recommend
that
it
be
part
of
the
Mandate
of
the
of
the
permanent
public
assistance
trust.
B
Why
do
I
say
worldwide,
because
billions
and
billions
have
been
raised
either
in
pension
funds
by
pension
fund
managers
working
on
behalf
of
pension
funds
and
by
other
types
of
funds
around
the
world,
targeting
water
infrastructure
and
again
these
are
not
robber
barons.
Looking
for
high-teens
returns,
these
are
folks
looking
for
a
place
to
park
pension
money,
predictably
and
safely.
B
The
next
steps
that
could
be
coming
up
in
the
next
few
months,
all
of
which
will
hopefully
yield
to
the
public,
the
city
of
Pittsburgh,
a
better
future
for
Pittsburgh's,
walk,
Pittsburgh's
water
and
so
with
all
these
options,
and
all
this
phenomenal
amount
of
information.
Good
luck
and
I'm
open
your
questions
before.
A
J
B
J
B
J
J
B
B
Know
I
I
it
was.
It
was
a
lot
more
than
today
and-
and
we
have
I
didn't
I
wanted
to
have
his
hesita
to
get
into
that
discussion,
because
the
key
variable
there-
and
this
is
something
that's
better-
be
that
better
done
when
we
have
more
time
ago,
specifically
into
this
issue,
is
that
there
are
a
number
of
assumptions
regarding
efficiencies
and
changes
in
efficiencies
that
are
based
on
the
available
research
that
we
have
on
on
on
public
operation,
private
operation.
You
know.
J
A
A
Of
finished,
your
comments
and
recommendations
can
then
come
back
based
upon
that
report.
So
today
was
sort
of
presenting
a
summary
of
the
findings.
There's
clearly
more
work
to
be
done,
including
diving
into
the
details,
not
only
to
confirm
some
of
the
assumptions
that
went
into
the
recommendations,
but
also,
if
you
know
whatever
further
questions
or
concerns
from
the
panel
or
the
public
there'll,
be
a
process
by
which
we
can
make
that
part
of
the
final
recommendation
circuit.
G
B
G
E
G
G
My
question
then
becomes
and
I
said
well
you're
going
to
incorporate
that
into
the
future
stuff,
and
you
say
yes,
we
will
so
my
my
question
then
becomes
if
this
is
a
late
addition.
The
idea
that
what
we're
really
trying
to
do
is
to
is
is
to
make
PWSA
attractive
for
regional
solutions,
then
does
that
reframe
the
options
that
you've
suggested?
G
Let
me
give
you
an
example.
So
let's
say
that
we
wanted
to
to
say
we
want
to
enter
into
a
ten
year
program
and,
at
the
end
of
the
ten
year
program,
will
do
a
the
trust
agreement
that
you
wanted
with
a
sunset
of
ten
years
and
that,
at
our
end
goal
at
the
end
of
those
ten
years
would
then
be
to
be
working
on
some
type
of
more
regionalized
solution.
If
that
was
what
we
were
really
trying
to
do,
wouldn't
that
wouldn't
affect
your
if.
A
A
A
Simply
by
a
reorganisation
of
just
PwC
itself,
whether
or
not
a
reorganized
PwC
becomes
a
platform
by
which
we
could
merge
with
and
integrate
with
surrounding
community
water
systems.
Absolutely,
let's
have
that
conversation,
and
if
this
creates
a
stronger
system
that
further
leads
to
conversations
about
regionalization.
I
think
that's
a
very
valid
point.
Clearly
right
now
we're
at
risk
of
losing
this
asset.
If
we
don't
take,
you
know
some
of
the
critical
phases
we.
A
One
of
the
conditions,
all
included
I
would
presume
that
one
of
the
conditions
on
the
trust
instrument
would
could
be
to
provide
for
a
path
toward
a
regional
solution
to
this
I'd
love
a
regional
solution
on
debt
structure
of
the
city
on
pension.
The
fact
that
you
know
our
city
doubles
in
size
every
day
from
commuters
that
don't
pay
taxes
of
the
city.
On
top
of
that,
I
think
that
we
could
empower
this
trust
to
pursue
those
options
in
Harrisburg,
which
is
where
the
solution
lies.
A
G
G
I'm
going
to
make
that
is
a
recommendation.
We've
decided,
we've
decided
that
you
were
walking
into
a
a
process
that
has
been
going
on
for
years
and
years
and
years
where
we
are
trying
to
build
the
relationships
between
the
city,
the
other
municipalities,
other
institutions.
In
a
way
that's
going
to
address
our
stormwater
issues,
our
dirty
water
issues
and
our
clean
water
issues,
so
that
that's
where
we
want
to
go
I
think
it's
not
you
telling
us
that's
where
we
want
to
go
it's
arguably,
where
we've
said.
We
know
that
we
have.
G
We
have
to
go
and
to
articulate
that
into
the
into
the
document.
I
think
is
really
I.
Think
it's
important
to
say
that,
because
there
has
to
be
a
clear
message
and
we
do
not
want
to
be
in
a
position
where
we
created,
we
a
perpetual
trust
that
10
years
from
now
all
of
a
sudden
becomes
a
huge
obstacle
in
our
way
to
be
able
to
then
seek
out
a
regional
I
solution.
A
On
behalf
of
the
administration,
I
would
fully
agree
that
all
the
work
that's
been
done
by
the
IOP
and
connect
and
the
other
organizations
to
provide
for
a
regional
solution
to
this
could
be
definitely
baked
into
the
implementation
structure
of
whatever
recommendation
comes
out
of
this,
and
this
would
be
exactly
the
type
of
feedback
from
the
panel
that
I
would
expect
based
upon
the
report.
So
what
very
well
said
and
I
fully
agree.
Steve.
E
B
They
it's
a
I,
think
they
would.
They
would
very
very
much
like
to
see
PWSA
right.
It's
ship
I
think
that's
very
important
to
them
as
a
functioning
entity
and
as
a
partner
in
this
process.
However,
if
you,
if
you
if
it
responds
I,
think
if
I
were
to
ask
him
the
question
of,
do
you
have
any
interest
in
taking
over
the
sewer
system
and
all
the
accompanying
liabilities?
Do
you
have
any
interest
in
taking
over
the
entire
system
and
all
the
accompanying
liabilities.
E
B
The
city
would
be
essentially
writing
the
Charter
for
the
creation
of
this
fund.
You
know
whether
it
was
then
you
know
later
embedded
into
the
trust
founding
documents
or
whether
it
was
made
separately.
So
they
would
be
able
to
decide
whether
the
first
of
all,
where
the
trust
was
large
enough
in
terms
of
income,
to
be
able
to
sustain
itself
and
generate
grants,
I
would
suspect
that
it
would
be
grants
I,
think
loaning
people,
one
low-income
households,
money
when
it's
when
it
can
be
that
large
doesn't
necessarily
solve
the
problem.
H
Could
you
talk
a
little
bit
about
receivership?
It
was
a
little
out
of
the
blue.
It's
so
really.
The
two
parts
that
you
could
maybe
expand
on
is
one
you
referenced.
The
fear
that
suddenly
the
DEP
ithi
a
may
come
in
and
take
some
type
of
action.
One
is
that,
based
on
actual
discussions
to
what
legal
authority
would
the
DEP
or
the
EPA
have
to
do
that,
so
maybe
that
first
and
then
follow
on
that.
What
you
would
envision
the
receivership
would
look
like
so.
A
I
can
answer
the
question.
There
is
a
pending
bill
in
Harrisburg
that
I
believe
represent
a
cost
had
introduced
last
week
or
the
week
prior.
That
would
form
almost
like
an
ak-47
like
receivership
for
PWSA,
and
so
whether
or
not
that
that
has
legislative
legs,
you
know
we've
not
had
conversations
with
the
representative
or
anybody,
but
clearly
there
is
a
will
in
Harrisburg
to
do
something.
A
That
would
be
an
imposition
of
a
again
it's
a
undefined
legislation
at
this
point,
but
it
would
be
sort
of
an
ak47
like
oversight
board
that
would
presumably
control
the
budget,
the
material
decisions
above
and
beyond
the
typical
regulation
that
you'd
expect
from
PUC,
which
is
more
from
a
consumer
protection.
You
know
perspective
so
there's
clearly
conversations
in
Harrisburg
underway,
whether
or
not
that
is
comes
to
fruition.
I
would
say
that
the
that,
similarly,
this
introduction
of
a
trust
concept
came
out
of
some
of
the
recommendations
of
the
Auditor
General's
report
to
depoliticize
the
relationship.
B
The
receivership
structure
actually
came
out
of
not
even
separately
from
the
from
the
legislation
that's
been
introduced,
but
from
several
sources.
We've
heard
that
DEP
and
EPA
were
seriously
considering
a
very
aggressive
action
of
the
type
that
would
that
would
place
the
utility
under
under
court
under
courts
control
and
we've
been
through
several
of
those
processes
as
an
adviser,
and
it's
it's
one.
That's
very
frustrating
if
you're,
the,
if
you're
the
owner
of
the
assets,
I
think.
B
H
Bit
is
my
concern.
That's
maybe
you
could
explain
having
been
involved
with
receiverships,
it's
not
something
you
would
voluntarily
elect
to
do.
It
usually
involves
a
significant
amount
of
expense
related
to
the
receiver
as
well
a
lot
as
a
loss
of
control,
and
so
as
a
as
a
optimal
solution.
You
know
as
a
recommendation.
A
But
I
would
say
there
are
two
issues
that
were
I
I,
at
least
an
hearing.
This
would
consider
is
relevant
to
moving
forward
with
a
trust
like
type
of
independent
document
or
organization.
One
is
that
it
would
avoid.
In
effect,
the
state
takeover
I
mean
the
idea
that
we
could
then
say
look
we
are
creating
a
structure
with
legally
enforceable
conditions
accountable
to
a
court
to
make
the
changes.
A
We
need
to
see
happen
to
this
authority
or
this
this
asset
in
the
system,
thereby
we
don't
need
ak47,
like
superior
powers,
sort
of
looking
over
our
shoulder
sort
of
keep
it
locally
controlled
through
a
trust
structure.
Secondly,
mayor's
change.
The
political
structure
is
good
when
you
have
somebody
in
office
who
is
fighting
for
green
infrastructure,
who
does
want
to
deep
politicize
it?
So
what
doesn't
want
to
hire
you?
No
political
friends
in
no-show
jobs
and
authorities
doesn't
want
to
hijack
the
budgets
of
these
authorities.
A
You
know
months
before
an
election
which
we've
seen
happen
in
the
past
I.
Think
if
you
track
the
historical
expenditures
here,
they
track
political
cycles.
So
again,
this
is
a
way
to
this
is
a
50-year
problem.
We're
creating
right
now
at
this
moment
in
time,
a
50-year
solution.
Do
we
want
that
accountability
to
be
held
on
four
year
cycles
and
I?
Think
as
somebody
here,
this
would
be
the
mayor
giving
up
power.
A
This
would
be
the
mayor
giving
up
the
ability
to
appoint
the
board
members
and
in
really
putting
it
into
a
public
trust
accountable
to
a
court
and
to
the
public
without
the
involvement
of
politics.
I
think
conversation
with
our
solicitor
who's
with
us.
Today
we
have
an
Ethics
Commission
here
in
the
city
who
we've
created
under
her
leadership
she's
here
with
us,
Laura
Sanchez
Ridge,
that
has
a
board
that
is
made
up
of
specified
stakeholders,
all
of
whom
have
extraordinary
powers
under
under
the
city
to
investigate
things
that
happen
and
to
keep
us
all
accountable.
A
B
One
point
and
clarification
very
important
clarification
to
make
on
the
recommendation
for
an
infrastructure
only
lease
concession,
and
that
is
that
it
would
be
accompanied
by
an
assistant
internal
improvement
on
the
operations,
regular
maintenance
and
governance
side.
All
of
the
items
that
we
proposed
here
all
of
these
components
would
be
also
be
part
of
the
infrastructure.
Only
concession
option.
H
A
B
It
applies
to
capital
construction
projects.
It
applies
to
major
repairs.
It
applies
to
anything
that
could
broadly
be
called
asset
management,
which
is
separated
from
routine
maintenance.
No
we'd
have
to
make
a
decision
as
to
whether
it's
more
efficient
to
integrate
the
routine
maintenance
in
with
the
larger
repair
and
replacement
cycle,
but
that's
a
decision
that
can
be
made
and
remember
who
Tier
two,
you
don't
just
suddenly
decide.
We
have
made
a
decision
to
engage
someone
to
do
all
of
this.
B
Availability
payments
are
actually
a
fairly
very
actually
a
very
well
accepted
method
for
financing
infrastructure
all
over
the
world
and
because
we
have
a
Dutch
affiliate.
That's
all
over
the
world
there's
a
lot
of
practice
in
those
availability,
payment
structures
and
investors
really
like
those
because-
and
the
reason
they
do
is
because
they
can't
get
a
high
return.
They
just
know
that
as
long
as
the
as
long
as
the
their
opt
developer
operator
performs
its
a
low
but
consistent
return.
J
A
H
B
Entered
into
concession
agreements,
there
are
a
large
number
in
the
US
and
around
the
world
that
have
entered
into
long-term
concession
agreements
for
water
and
sewer
facilities.
Typically,
they
improve.
They
include
operations.
However,
there's
no
reason
that
they
have
to
include
operations
and
that's
why
we've
made
this
recommendation
because
we
felt
it
was
important
that
the
operations
and
and
the
operations
and
customer
service
side
remain
public
yeah.
H
I
H
Them
so
that
I
think
would
be
helpful
to
me
is
to
see
a
couple
of
those
case.
Studies
I'd,
like
you
know,
I
mean
we're
talking,
not
not
a.
You
know
a
concession
agreement,
for
you
know
two
hundred
million
three
hundred
million
we're
talking
a
concession
agreement
for
billions
and
I'd
like
to
see
it's.
You
know
what
it
exists
now
and
and
a.
J
B
B
G
Pick
up
on
the
on
the
receivership
because,
as
I
look
at
your
assisted
internal
improvement
program,
that
would
be
pretty
much
what
we
call
an
ak47
recovery
plan,
what
somebody
would
do
if
they
were
trying
to,
in
effect
right
the
ship
of
a
failing
organization.
So
if,
when
you
were
talking
earlier
cavity
about
you
know
the
ak-47
process
or
ak-47
equivalent
I
mean
how
could
we
create
this
order?
If
you
will
the
political
space
that
I
mean?
What
was
this
thought
bill
from
simply
saying:
that's
what
we're
going
to
that's?
G
What
we're
going
to
do
and
we're
going
to
have
a
assisted
internal
improvement
program,
slash
ak-47
plan,
we're
going
to
implement
these
these
these
things,
because
I,
mayor
and
I
can
do
that
and
PWSA
board
supports
it.
It
seems
to
me
that
the
issue
that
were
you
know
ultimately
talking
about
is
the
is
the
weight
or
belief
in
such
a
process
having
the
credibility
it
would
actually
get
implemented
in
ways
that
it
hasn't
been
done
in
in
in
the
past.
A
I
think
there's
a
our
reasons
that
it
makes
sense,
one
of
which
you
know.
Obviously
you
have
staying
power
beyond
the
political
cycles,
but
obviously
we're
folks
in
the
room
you
know,
maintaining
local
control
is
important
and
I.
Think
you
know,
having
ak-47,
which
is
accountable
to
folks
in
Harrisburg,
may
not
be
in
our
best
interests
having
just
gone
through
that
and
then
the
ICA,
and
then
you
play
politics.
So
the
Harrisburg
is
just
as
much
of
a
political
animal
is
it's.
A
Question
on
its
one
form
of
corporate
governance,
change
to
make
sure
that
we're
doing
the
right
thing
insulated
from
politics:
it
could
be
a
receivership
like
a
47.
It
could
be
the
establishment
of
a
trust
like
it's
being
recommended
here.
It
could
be
a
revision
of
the
contract
between
the
city
and
PWSA
to
embed
in
to
those
the
same
types
of
protections,
so
you
you
can
choose
and
we
should
deliberate
upon
what
an
array
of
different
solutions
that
could
be
achieved.
A
I
think
the
the
one
of
the
elements
of
a
trust
is
that
it's
publicly
accountable
to
a
court.
It's
legally
enforceable
to
the
instrument
as
a
matter
of
law.
The
trustees
can
only
do
what's
in
the
best
interests
of
the
system
and
they
have
the
food
petitionary
duty
to
do
nothing
other
so
again
having
their
different
models.
Certainly,
this
is
not
a
panacea
to
solve
all
the
problems
that
we're
facing.
A
G
G
We
have
one
of
the
solutions
right
right
there
and
I
guess.
The
issue
of
Kevin
is
you've
appropriately
phrase
it
what's
the
best
way
to
get
to
that
that
solution,
so
that
everybody
feels
feels
appropriate
and
there's
enough
teeth
in
what
we're
doing
such
that
that
process
would
go
on
a
politicized,
great.
B
It's
really
it's!
That's
not,
as
in
that
wasn't
exactly
our
mission
here.
Certainly
it
can
be
incorporated
in
the
trust
and
one
of
the
things
that
we
do
think
is
that
it
is
a
bit
odd
too.
You
can
have
a
financing
mechanism,
that's
separate
for
the
CSO
compliance,
but
to
have
an
operating
entity
that
is
separate,
doesn't
make
sense.
B
K
We
were
saying
that,
as
the
public
trust
got
set
up,
you
could
incorporate
absolute
some
of
the
things
that
David's
talking
about
absolutely
other
things.
I
mean
I.
Just
think
that
you
know
having
been
resident
here
on
my
life.
You
know
I
like
the
idea
of
the
public
trust
and
it's
game-changing
for
the
city
as
a
how
the
city
is
operated.
K
But
if
we're
gonna
do
something
like
this
well,
let's,
let's
incorporate
everything
else
that
we
want
to
do
or
wanted
to
do
for
the
last
20
years,
including
recommendations
from
the
Cohen
Committee
on
on
regionalised
sewers
and
so
forth,
and
taking
into
consideration
the
other
aspects
that
we've
talked
about.
I,
don't
know
how
much
the
capacity
of
the
plant
factored
into
some
of
your
decisions.
You
know
it's
something
that
you
know.
I
K
A
Other
questions
or
discussion,
as
my
allergy
medicine
wears
off
sorry,
okay,
so
I
do
realize
we're
about
two
hours
and
20
minutes
in
and
we
do
have
a
follow-up
meeting
here
with
the
the
panel
I
want
to.
Actually
you
know
open
it
up
to
the
public,
those
who
have
kind
of
remained
through
here.
If
there
are
questions
for
the
panel
or
you'd
like
to
present
to
mr.
Steckler
and
his
team,
if
you
can
come
up
to
the
podium,
if
not,
obviously
we
have
a
mechanism
through
our
website
for
public
comments
to
be
incorporated.
A
K
I
A
All
right,
so
the
website
the
comment
was
for
the
public
was
made
that
there
is
no
character
limit
to
the
website
like
there
was
before
so
please
yeah,
please,
please
visit
I
do
want
to
thank
IMG,
the
team
for
your
work.
Obviously
the
members,
the
blue
rim
panel,
just
for
clarity
for
next
steps,
as
we
get
closer
to
a
decision.
A
You
know
when
I
mentioned
this
to
you
earlier
we're
gonna
sort
of
remove
ourselves
from
those
deliberations.
I
also
want
to
thank
the
members
of
the
PSP
w
SE
Board,
who
are
here
the
executive
director
and
his
leadership
team.
These
are
fantastic
folks
who
work
very
hard.
They,
if
you
don't
know
typically
Authority
boards
in
the
city
meet
every
month.
These
guys
are
meeting
every
other
week.
The
volume
of
work
that's
happening
within
this
authority
right
now
they
have
taken
on
responsibility
for
this
I've.
A
Never
once
heard
them
complain,
I've,
never
once
heard
them
passed
the
buck,
they
clearly
have
stepped
up
and
they
own
this
situation.
I
don't
want
anybody
to
feel
that
any
of
the
investigations
underway
here
any
of
the
comments
made
by
Steve
or
his
team,
or
any
way
critical
of
the
board
or
the
executive
director
and
his
leadership
team.
These
are
some
of
the
best
public
servants
we
have
working
today
in
city,
government
and
and
in
again
for
those
who
are
against
privatization.
You
have
to
look
just
to
the
south.
A
Here
we
had
a
private
Water
Company,
just
the
other
day
who
boy
order
that
go
into
effect
and
I
got
an
email
from
them
asking.
What
do
we
do
and
I
said,
welcome
to
the
party?
So
that
being
said,
there's
a
lot
of
there's
a
lot
of
hard
work
ahead
of
us
and
and
I
can't
be
prouder
of
the
work.
That's
been
done
by
our
board.
You
know
towards
exercising
their
duties
to
the
public
under
some
very
difficult
circumstances.
A
I
think
if
you
look
at
the
work
that
we've
done
really
over
the
last
eight
months,
it's
been
tremendous.
The
work
that's
underway
in
and
I
have
to
give
credit
to
Alex
Thompson
and
his
team,
who
kind
of
walked
into
this
from
the
very
beginning,
really
learned
their
way
and
then
passed
the
torch
to
this
new
team,
who
is
I,
think
doing
great
work.
So
we're
looking
to
build
upon
that
work
and
and
all
of
our
efforts
are
meant
to
complement
the
work
that
you
do
also
just
I'd
be
remiss.
A
The
Heinz
endowments
as
well
has
funded
some
work
by
Howard
knew
Krug,
which
we
deemed
the
mayor's
innovation
project
who
has
have
met
with
a
number
of
you.
They've
done
an
independent
sort
of
analysis
of
PWSA,
really
primarily
from
an
internal
investigation.
There
will
be
they'll
be
available,
I
believe
they're
in
the
office
tomorrow.
I
have
a
meeting
with
them
to
make
their
work
available
to
all
of
you,
so
I
see
Matt
Barron
who's
here
with
us
today
from
the
Heinz
endowments
who
has
been
committed
to
that
process.
A
I
With
PWSA,
right
now,
in
anticipation
of
a
bond
issue
to
refinance
debt
to
save
money,
which
I
think
everybody
thought
was
a
good
idea,
one
of
the
critical
things
that
was
said
tonight,
I
just
need
to
clarify-
because
it's
going
to
be
very
impactful
to
this
effort-
is
that
the
recommendation
that's
being
made
right
now.
Is
that
PWSA
be
placed
into
a
receivership?
Is
that
correct?
No.
A
So
I
understand
it.
Given
the
way
your
bond
issuance
but
I
think
what's
being
contemplated,
is
that
the
city's
ownership
of
the
asset
plus
the
city's
interest
in
the
leasehold
to
PWSA
would
be
the
corpus
of
the
trust
that's
being
created.
So
the
idea
being
that
the
board
and
PwC
would
operate
accountable
to
a
trust
structure
but
again
we're
at
a
recommendation
stage
right
now.
You
know,
obviously
that
would
take
time
to
incorporate
and
we
could.