Oklahoma City Water Utilities Trust - Regular Meeting

Good afternoon, it's 2 p.m. and we would like to start the meeting of the Oklahoma City Water Utilities Trust. The next point in the agenda is the approval of the verbal of the 4th of August meeting that you find in your package. Are there any questions regarding the 4th of August meeting? Since there is an approval proposal.

And it is approved.

We have a rather broad agenda today. There are many signings of contracts, many articles put to the test. It is a series of amendments and amendments. There are 25 points in the order of the day. There are points that the trustees would like to discuss and withdraw for an individual consideration.

Not seeing them, there is a motion to approve the order of the day.

And it is approved. There is a point in the order of the day of agreement. It is a point of agreement with the city of Oklahoma City for an amendment and an order of modification for a road reconstruction project or expansion to Southwest 29th and Rockwell. Are there any particular funds involved in this project? Questions or doubts about the project? Not seeing them, there is a motion for action. And it is approved. Point 6. No, point 5 concerns the emergent construction contracts. They are not in the order of the day. Point 6 concerns the elements for individual consideration. We have a resolution that authorizes the Director General or his delegate to establish a dedicated account substances for polyfluoroalkylics. We have a person who signed up to talk about this point. Joseph Pershing.

Pershing, please also leave your comments within three minutes. Okay, it shouldn't be. First of all, thank you for allowing me to address the committee here. I will only say that I will start by saying that I was a bit confused when I saw the order of the day and that you have evidence of contentiousness derived from PFAS because we have been informed several times that Oklahoma City does not have a PFAS problem In March last year, Mr. Browning told this committee that there was no problem with PFAS. We were talking about parts per billion and there were no problems with the biosolids. Your reports on the water you publish basically say that you are among the four parts per trillion stabillion established by the old administration. So where are the problems with PFAS that you have caused? And now what happens with those 17 million dollars you are receiving? And I realize that today you are voting to open an account. And okay, I'd rather see it done this way rather than go to the general fund. It's a black hole. You'll never see that money again. But I would like that account to be specifically intended for the mitigation of PFAS. Is that why you got the money? And let's keep it for that. Because even if you think you don't have a PFAS problem, you do. There are PFAS in the biosolids that are scattered on agricultural land. Uh, they are accumulating there. And so it is worth starting to put aside a little money now to pay for mitigation. This is all I ask. Send it back. Get a better resolution, specifically for the mitigation of PFAS. I'm open to any questions. Any questions? Thank you, sir. Thank you.

This was a class section to which the city and ACWA have joined. In reality, it is a multitude of four class sections. So we joined and hired an external consultant and, as part of that process, we had to present the laboratory results. We had to present all sorts of things. And so, in the Class Action, we were not, you know, we are not the only city in the cases. And so, as part of the agreement with the four entities, this is the money that derives from it and is intended for the treatment of water, and since we were establishing the fund to address such issues.

I just want everyone to know that this concerns water, not biosolids. So the action class concerned water companies. And so we presented our data and we had an agreement based on the data we provided. Now, just so that everyone knows, we have been testing PFAS in our water plants for several years and we have always been below the limits. Relevable and unrelevable limits. They are four parts per trillion. Now we have in parts of the North Canadian River that reaches Lake Hefner and has been detected a little in the southeast of Oklahoma, but we have zero or results under the limits both at Lake Draper and Lake Hefner.

To be clear, we are putting these funds in a account, a designated deposit. Correct. It is intended for the project that we consider appropriate, that is, the central laboratory. And that structure performs all our regulatory tests. Well, any other questions? There is a motion to approve the resolution. The point 6B is a resolution that authorizes the Director General to proceed with the development of a financing plan for certain improvements to the Oklahoma City Water Utilities Trust and the reimbursement of some suspended obligations, including the preparation of an official preliminary statement and the request for rating. authorizing the General Directorate to distribute an association of underscriptors by the group of underscriptors pre-qualified for the issuance of obligations of reimbursement and improvement of the entry of the system of public services in one or more series and approving the scope of services for consulting services. Four favorable votes are required for this, since it leads to the issuance of debt. Dennis Whaley this morning from PFM. I have a small presentation here to give you a little context on some of the main projects that are taking place in the water company and also to talk a little about the current sale of obligations. So, going to page 4, the aqueduct is now moving through the ship phase implementation for the Atoca oil project. Most of this project has been signed, so now we are in the process of spending that money. In addition to spending, it is also necessary to have a distancing capacity for high-value construction sites, and we will talk about a couple of these projects in a second. And many of these important projects are multi-year initiatives, just like the Atoca oil project. In the next 5 years the aqueduct will spend about 2.7 billion in the city and in the period of 10 years we will spend about 4.9 billion. The good news is that some of these numbers have been reviewed and the price per decade has dropped by about 100 million dollars, which is positive. Grand capital projects with slowdowns in the specific are the expansion of the treatment plant of Draper's water about 115 million dollars Draper and Hefefner Disinfection. I have difficulty saying disinfection. About 148 million dollars. The Deer Creek wastewater treatment plant from 480 million dollars. And now we are seeing Kei Kei Miki reach 540 million. It is expected that Kei Miki will assign about 30 million up to 28 and the rest of this assignment will take place between 29 and 34. Tool was the largest project for the water company. I started working on the forecasts for Atoca about 15 years ago. So we have been working for a long time. It took many years to reach the peak of construction. Part of this has to do with the legal challenges that occurred a few years ago, which have all been resolved since then. In addition, it takes a long time to deliver to obtain some of these materials, such as pipes. What happened in Orecchia Tocca is in contrast to these other projects and everything has come together in this current period of five years. So we will work diligently to overcome this period of time. So how do we finance the chip? Through commercial cards. If you remember last year we brought the capacity of the commercial card to 500 million from the previous 350 million. This supports both the judgments and the spending plan. So we have to take money from the CPI program, the money we borrowed through a refinancing to restore our ability to assign or pay more projects. We have also established a banknote program with BOK. The capacity of that program is 175 million and we use it mainly or until we have used it exclusively for housing. Another method is the sale of long-term fixed-tax obligations that we are about to undertake, and today's resolution authorizes the aqueduct to undertake preliminary actions such as starting legal documents, preparing the preliminary official declaration, preparing for rating meetings and an RFP to select a subscription team. Of course, we continue to use the OverB when we can. Not all projects can go through the OverB, but we use it as much as possible for low-cost financing. So the sale of bonds will refinance the commercial paper in circulation and will also collect new funds for projects in the next nine months. The sale of bonds should be about 360 million dollars. I think about 180 of those will be taken from the commercial paper and about 180 will be new funds. Some highlights of the chronology, we will circulate the mini rfp on August 26, we will return to the trust and we will go to the council on October 13, rating meetings on November 14, we will publish the post on November 10, we will sell on November 17 and we will close the obligations in the first part of December. We have already done it in the past and we have shown you that we are according to the requirements of the commercial card program. First of all, the authorization for the issuance of commercial paper currently amounts to 700 million dollars. This is separate from the available import on the credit letter. Last year we issued 50 million in commercial paper. On August 3 we had 74.5 million in circulation. We will add more from here to the sale of bonds, so we have a lot of capacity regarding our authorization. As for the credit letter, which is 500 million dollars, on August 3 we had 74 and a half million, so we have a lot on the margin there as regards loans on commercial cards. The other question is the authorization for supply, where rents and expenses meet. Although we have 74.5 million in suspended debt, Aqua has used the commercial card program to allocate about 325 million dollars in future expenses. This is one of the reasons why we have to extinguish the suspended commercial card, to have greater capacity for future loans. just a brief market update many things happen in the world many things happen in the national markets with the curve of the titles of the usa treasure we are starting to see a slowdown which means that the high part of the curve is starting to rise. Earnings are increasing. Much of this is due to long-term investors who demand a premium for inflation to retain long-term obligations. We have noticed this due to some economic data that have been published. I think we will probably continue to see further recession. As you can see on the right side of the municipal curve, you can see that recession in the municipal curve. We have a Fed meeting on September 15-16. We will see if the taxes will rise or remain unchanged. I doubt they will go down, but we will find out. We will also have Fed meetings in October and at the beginning of December. Last page. Only a 10-year chronology of how municipal obligations have been exchanged. This on the axis X you will see a from 1 to 30, that is, from year 1 to year 30, which represents the historical interval of 10 years in which municipal taxes have been exchanged in each of those years. You will notice that the taxes have dropped a little compared to last year, but we are still close to the upper part of the curve. So we hope to see some improvement in the markets in the next 6-12 months and maybe see lower interest rates.

Having said that, I would be happy to answer any questions and thank you for your time.

There are questions for Mr. White. Well, there is a motion to approve the resolution. And it is approved unanimously.

Thank you.

Mr. Brown, reports from the Director General.

Thank you, Mr. President. As you can imagine, with the heat, our lags are starting to go down a little.

We are not yet bad, considering how hot it has been for this long period.

Efner is approaching 6 feet below the maximum level Draper is about 4 feet and a half below the maximum level Cantona is a little more than 1 foot below the maximum Atoka almost 3 feet and McGee Creek 1.3 feet So we are still in a dignified situation It hasn't been long since in this period of the year Draper was about 9 feet Efner was about 6 So we're still holding on Efner was a lot above Yes, but not during the month. I don't remember. I would like to remind everyone that, as you know, we align our fund meetings with those of the municipal council. In September there are three meetings of the municipal council. Usually we only have two fund meetings a month, so for the first September meeting there will be no fund meeting. I just wanted to remind everyone. We have a birthday coming up. Sharon will turn 24 years old. So, happy birthday. I hope you'll have a great day. and then a bit of bad news patricia was our legal advisor mainly dealing with the acquisition of land and services to allow us to carry out our capital program over the years and decided to retire to move on to the next chapter so I wanted to thank you personally patricia for everything Along the way you have been fundamental for our success. I really thank you so much for this and I hope you will enjoy your retirement. I know it's hard to come to work every day when the other half is at home, maybe sitting on the couch. Well, you'll miss it. Thank you very much. And that's all I have, Mr. President.

Another thing, personal. I almost forgot. Great job again. Thank you very much. All right, there are no other questions to ask. Thank you.