 Good morning everyone I believe we have all of the board members on on the meeting just checking in with director Burke if we need to wait for any additional stuff. Thank you chair what. Um, we need one more staff person elevated to panelists if Nick Harvey could be elevated and then we are ready to go. Great, great. Thank you very much. I'd like to call the meeting to order at 11am and secretary man if you could do a roll call. Thank you board member what's here. Thank you board member Walsh here and board member Barthelot here at the record show that all members of the budget reviews subcommittee are present. Great. Thank you very much. Just as a reminder like to remind all the committee members to mute your phones and microphones when you are not speaking. And I'd like to open up for items number two on public comments on non agenda items. So if you wish to make a call via zoom, please raise your hand. If you are dialing in via telephone please dial star nine to raise your hand. Secretary man as do we have any live email or voicemail public comments at this time. We have no public comments on this item. All right, great. Thank you very much. So I'd like to move to item 3.1 if director Burke if you could introduce item. Thank you very much chair Watson subcommittee members. The item before you today is the Santa Rosa water fiscal year 2023 24 budget overview, and Kimberly Zanino our deputy director of administration and Nick Harvey, our budget and financial analysis manager will be presenting. Chair and members of the boards. I am going to share my screen and I will actually run the presentation all the way through so Nick will be asking me to forward slides during his part of the presentation. All right, so today we are going to discuss as director Burke said the basically the preliminary overview of the Santa Rosa water fiscal year 2023 24 budget. What we are going to do first though is I am going to go through with you and overview of the various funds that are in Santa Rosa water. I want to go ahead and give this overview for a couple of reasons one because we know we have a new board member on this committee and so we want to give a little bit more detail about the various funds that we have and also because we have now or you have now had some of your four budget review increased with the change to the to the Charter which means that you will now be also reviewing the storm water budget as well so storm water and creeks is going to be coming to you for the same review. And so we wanted to give you a little bit of background on that as well. So you can see here we have a list of our four funds that we have we have water wastewater, we have the regional fund and then also the stormwater fund. The Santa Rosa water has all of these multiple funds and in the next several slides I will discuss each one of them I'm going to start with the water enterprise fund. So the water enterprise fund is funded by ratepayers. It's about 93% of the revenue that we receive for that fund comes from those ratepayers. We have approximately 54,000 accounts, and we bill our customers both a fixed and usage charge. Our water rates are built in a tiered system that has various tiers based on the type of use. So for example residential and irrigation accounts have two tiers and commercial accounts pay a single tiered rate. What I'm showing you here is the revenue that was collected for last year just to give you some context. The additional funding that comes into the water enterprise is from demand fees or connection fees, and then also miscellaneous fees and those miscellaneous fees include everything from a meter to a fine to a field inspection. They are charges for services that are not spread across the entire rate payer base. And I'm showing you also here the fees that we collected last year in those two categories. On the wastewater side, we are also funded by rates about 93% as well. And we have about 50,000 accounts. We have more water accounts than sewer accounts because irrigation accounts don't have sewer associated with them. And so you so we have less accounts that have sewer on them. What we are showing you here is the amount of rates that we collected last year. The difference is with sewer that we do not charge any sort of tiered rate systems. What we do is we charge a single rate per thousand gallons for all of our customers, but they are varied rates based on the type of use of each of the customers and that is also based on the strength of the discharge. So there's low, medium and high discharge strengths and there are different fees for those different categories. Our residential customers sit in the medium strength category and they are the majority of our customers. And we also have fees that come in from a connection to our system. So those are the demand fees. We have also a fee that I note here, which is not included obviously on the water side because it is for the maintenance of the South Park Sanitation District. They pay us a fee yearly in order to maintain that system. And then we also have various miscellaneous fees on the wastewater side as well. And you can see that last year we collected $6.6 million as a combination of those two fees, or those two types of fees I should say. In the regional enterprise funds, there are five partners. Those five partners, the cost for running the regional system, the CIP and the debt service are all paid for by those five partners. The way that we distribute the cost to those five partners varies based on the different type of expenditure. So I have noted here that operating costs are distributed based on actual flows that come into the plant from each one of those partners. Debt service payments are calculated and distributed based on when debt was incurred and also the type of project. So if it's an expansion project or just a replacement project like the UV project that we're now working on, the debt is determined differently depending on the type of project that it is. We also have the CIP costs that are distributed to our partners and that is distributed based on our sub regional agreement with the partners. It defines how much of the CIP each of the partners pays for. And lastly, Santa Rosa's portion of the regional enterprise expenditures is covered by those wastewater funds that we collect from our ratepayers the demand fees and the miscellaneous fees. So stormwater funding, which is the new one for the Board of Public Utilities to be reviewing. We want to go into a little bit of depth about how they receive their funding and what funding they receive. So as you can see here, the funding was approved in 1996 when the city council added Title 16 to the city code, it created this enterprise funds. And the purpose was to meet the regulatory requirements of stormwater and creeks. It is funded by an annual assessment on property taxes. And there is also some supplemental funding from the general fund, which unfortunately is increasingly limited year over year, but we work to get and work with the finance department to cover costs through the general fund. And for the capital improvement program, development fees are collected when development goes on in the city. There are specific fees that are collected that can go towards capital improvements that includes stormwater or storm drain and grant funding. There's also some gas tax that becomes available. And then there are some assessment funds that are used when needed. They will use some of those assessment funds. The assessment is used primarily for regulatory requirements, but the funding and unfortunately the funding is insufficient to cover the infrastructure improvements. The typical split with those assessment funds when they come in is 47% of it goes towards stormwater and 53% of it goes towards creeks. There is an annual escalator on that assessment, and that is based on the consumer price index. I'm showing you here what the rate was per equivalent residential unit that was billed on the property taxes for 2022-23. We wanted to talk a little bit about the regulatory requirements of the various funds. We have so far and probably will continue to keep stormwater separate from the water wastewater and regional funds as we explain them and show them to you. And that's just because they have different regulatory requirements on the water and sewer rate payer funding that is governed by Proposition 218. Those regulations require that we cannot intermingle the funds so we can't use water funds for wastewater uses and we can't use wastewater funds for water uses. We also are not allowed to subsidize customers with rate payer funds, so we can't take funding from one customer class and subsidize another that is not legal for Proposition 218. The development of the rates is based on the services that we provide, so we need to make sure that we perform rate studies that show that we are covering the costs. We are not a for-profit, so we are just collecting rates in order to cover the expenditures to run the systems, have the CIP projects funded, and also for those debt service amounts that we have as well. The rates are approved through a public hearing process, so as we get closer to our next proposed rate schedule, we will start that process. We will hire a consultant to help us with the study and then we will move through a public hearing process that takes actually quite some time, so you will be seeing a lot of detail about that as we start moving towards getting ready to start that process again. On the regional fund, enterprise funds, obviously Santa Rosa's portion of it is covered, or the rates that we charge our sewer customers is what covers that regional funding, so that funding for us is still part of Proposition 218, but the rest of how the costs are distributed and all of the other information that I provided for you is all governed by a subregional agreement that is with all five of the partners. And then stormwater funding. So stormwater funding is allowed to cross between the stormwater and the creek side, so those assessments don't have to be specifically for one or the other. And so that is a difference in that regulatory requirement. If we want to increase those assessments, more than the CPI that is already approved that would take a vote by the property owners that are affected. The next slide is simply here to give you an idea of the breakdown of the expenditures and how the total costs are compared by the water, wastewater and regional funds. So you can see this is just showing you the budget for this current fiscal year that we're in, which was $154 million. $199 million of that was for operations and maintenance. $36 million of that was for capital improvement projects. And then $28 million of that is debt service. That debt service lies mostly in the regional system for large projects like the geysers and the current project under construction and the ultraviolet replacement. There are the system at the replacement of the ultraviolet system. So this is just showing you those three funds and then you can see the pie chart shows you compare comparatively which fund has the most amount of expenditures which you can see here is the regional system. The stormwater budget is outlined here for this current fiscal year, there were $3.3 million in operations and maintenance, and then $1.4 million appropriated to capital projects. $850,000 came from enterprise funds and $850,000 came from other funding sources. So those development fees that I talked about or grant funding sources. That team is very active in seeking out grants for the various projects that they do because they do not have a more defined amount of funding. So what they can do varies based on the type of funding and the amount of funding that they receive on a yearly basis. This slide is just kind of a different look to just give you an idea of where the majority of the funding goes. And you can see that salaries and benefits are the largest expenditure that we have in all of the funds. Next is listed here is overhead. That's basically the cost of what all the other city departments do for us. And then we also have the purchase of water, which is one of our biggest expenditures. And we purchased that water from Sonoma water. And with that, I'm going to finish my portion of it and I'm going to hand this over to Nick Harvey, who is going to go over a very high level overview of the budget. Thank you. And good morning, everyone. As deputy director Zanino mentioned, my name is Nick. I'm a budget manager here with Santa Rosa water and I'm going to be doing a high level budget overview with all of you today. We're going to kick things off by discussing some basic assumptions and anticipated changes in revenues and finish up by reviewing our plan CIP funding and our remaining budget schedule. Next slide please. So we're going into the last fiscal year of our currently adopted Emma news, which included two and a half percent co effective July 1 2023. We're also continuing to see price volatility and the cost of chemicals and electricity. We don't currently have any reliable rate forecast from PG&E. So the entire city budgetarily is moving forward with a 15% increase with the understanding that if needed we'll go to council for additional mid year appropriations. And note, however, when you review the regional enterprise we're anticipating greater than 15% rate increases. And that's due to the fact that we're incorporating the increase in the rate, in addition to a planned increase in actual energy demand at the plant. For the past couple years we've actually overspent our electricity budget highlighting the need to plan for increased energy consumption at the plant. So, as such you'll see slightly higher than 15% on the regional side. Our overhead and garage and vehicle charges are also increasing as a reminder the overhead category represents the city charge outs for central services. These would be things such as accounts receivable accounts payable financial reporting city attorney's office so on and so for us as a reminder these costs are all allocated by the city. And are not controllable. The salaries and benefits are also affected by ways and three new positions added to the department that are outlined at the bottom of the slide there. Next slide please. Okay so our revenue assumptions for fiscal year 2324 include an anticipated increase in water delivery volumes of approximately 5%. We've seen historically based on previous years, where we'd come out of drought and experienced somewhat of a rebound in demand so that's our assumption moving forward. We're expecting series to remain essentially flat and development to remain stable and current per our currently adopted rate plan we're implementing 3% and 2% rate increases for the water and sewer grades respectively. Next slide please. In addition, purchase of water is one of our largest operating expenses on the water enterprise specifically. So the two main factors affecting our water purchase budget or water delivery volumes and changes to the Sonoma water wholesale water rate. As mentioned on a previous slide we're currently assuming we'll see about a 5% increase in water volume delivered which directly corresponds to a 5% increase in the volume of water purchase from Sonoma water. Sonoma water is currently proposing a 10.5% increase to the wholesale water rate. Next slide please. Okay so as we just mentioned water revenues are estimated to increase a bit due to a higher anticipated delivery volume and planned rate increase. Our sewer revenues are expected to increase slightly based on our 2% increase. As a reminder tend to be less volatile than water usage revenues due to sewer caps. And we're expecting strong demand for your revenues due in large part to one lump sum payoff we received and will be budgeting to be transferred into the operating fund so specifically that $5 million payment that we received last year. We're expecting a modest increase in miscellaneous revenues at the plant driven mostly by the success of our high strength waste program. But these effects are tempered a bit by the loss of the Calpine contract payments for geysers water deliveries, as well as the expiration of the last of the dairy waste loans. Next slide please. So here's a look at our reserve levels for each of the operating funds as of June 30, 2022. And take away here as we're continuing to see very healthy balances and our undesignated fund balances for both the water and wastewater operations. A quick reminder on a regional we don't have an undesignated fund balance in the regional, because the only amounts we're holding over our refund reserves applicable to each of the five user agencies. And we, the way we budget regional is we're only recouping our costs. So it's budgeted to be a net zero so we don't hang on to access reserves in that fund so anybody's wondering why we do not have an undesignated fund balance under regional. That's a reminder of why that's the case. Next slide please. So for 2324 we're funding the water and sewer CIP programs with cash at 14.6 million and 13.5 million respectively. We're also continuing the program of adding $1 million per year to the regional CIP program, which will be funded at $10 million for 2324. Next slide please. Here's a look at our remaining budget schedule will be bringing more detailed look at the budget to the subcommittee in March with exact dates still to be determined. We will be back before the full board on March 16 to discuss Sonoma waters proposed rate increases. And then we will be back before the full board several times in April the budget study session as well as request for the board to recommend the water department budgets and regional partner allocations to city council. And then on the city council side. We will be back for approval of the preliminary regional budget on April 25. And then we'll finish out the budget cycle study sessions on May 8 and 9 and formal budget adoption to follow on June 20. And with that, we are available to answer any questions if anyone has them. Thank you so much for the presentation. Are there any board member question or comment. Well, thank you chair Watts, and I wanted to defer to member part of who to in case you had anything to ask first because for the first meeting but I want to just make comment those excellent concise presentation on the types of budget issues that will be looking, looking at, looking at, and, and then my consideration is with the storm water funding coming into the under the scope of the deep board of public utilities to look at, in addition to the current water and wastewater issues, would we consider, should we consider having the consultant that advises us now on setting the water sewer rates and compliance with prop 218. And then the demand fees, would we consider having that consultant help us with storm water to look at the mix of funding of the mitigation fiat funding that we have now. And then the assessment district which itself, I don't know if this district or not, but the assessment. So we have a property tax assessment mitigation fiat funding, and then some mix of general fund funding. And then we have to continue it at the current percentage of the storm water budget, or more better. We've got a lot of different funding mechanisms, when we have the consultant, consider having the so come on board and walk us through those issues and then possibly adding staff to the department's administrative, just to kind of walk through and monitor the more complex funding streams that they have so I'm just concerned about the resources and that we do things right. That we get the mitigation fee active counting right, we're reporting for it right, and then the required nexus studies that now have to happen periodically so we can maybe consider engaging a consultant to walk through that. That might be helpful. Thank you chair. So, as far as the consultant that will come on for the rate study, it will be a very different process that they would go through. We also as you know, we talked about earlier, have to keep that funding very separate so water wastewater has to be managed very separately we couldn't cross mingle those funds that consultant that we will bring on is very specific to that type of work. They will be looking at usage from our customers they will look at demand on the system they will look at a lot of varying factors to determine how basically to restructure the fixed charges and the usage charges and those tears. And so they spend a lot of time working with the data from our actual water and sewer customers. If we were to take a look at any sort of increase on the storm water side we would probably want to bring on a consultant that was more geared towards that type of work, which includes that need you know to actually have a vote. It's a it would be a public vote that would have to happen in order for that where we take our rates to city council and city council is able to approve those rate structures for us. As far as the mitigation dollars I know that recently you saw an agreement. You saw some mitigation dollars that we are receiving in the stormwater fund. That was an actual grant so there are multiple state and federal grants that are available that are called mitigation grants. And so what stormwater did and what they do is they go out and they look for mitigation grants that they can apply for specifically so that money was specifically applied for for stormwater to work on the storm the storm drain master plan. And so they will continue to go out and look for those mitigation dollars that will come directly into that fund and stay in that fund. Fantastic and that's what I think and that's what the consultant would say to that's not but I've been expert and I don't want to look at the whole mix right. And then the student do you all need more resources because you've got this big mix, and then somehow we walk the. So on the scope of the funding of stormwater it does not include what we call the mitigation the act or maybe 1600 feet so it does not and so what what we're it does not at all we're talking about mitigation grants. Wow, that's completely different than what I saw great. We're not dealing with what we would call mitigation Fiat funding. That's different right. So right, it would be like developers contributions to facilities and that does not include our stormwater is that correct. They get some development fees there are some fees that are out there that are charged developers when they develop in a certain area and those fees go into a fund and then they are allowed to use some of those funds for storm drain improvements. Because when you develop, you need to develop water wastewater, you need to be sure that stormwater is also being handled per the regulations, like features are installed so there are fees that come in through development that do go towards that. So they're not they're not an assessment they're not a mitigation dollar but they are fees that are paid and are allowable uses for stormwater uses. And but there's not that a specific line item in the in those type of development mitigation fees for stormwater. It's just a facilities mix is that Most of those are mixed fees correct and there are different there are different amounts that can go. I don't know the exact amounts that have gone in the past some of those have disappeared even some of those funding sources. A lot of what they do is based on that assessment money they get a gas tax supplies money for them because gas tax is one of those types of funding sources that is very free to be used across different types of uses. And then, you know, they, they, like I said they go after the grants they try very hard to get as many grants as they can to do the work. And probably all over the nation that you know stormwater and storm drains are one of those areas that are extremely underfunded and everybody's looking at that and everybody's trying to come up with, you know, ways to start addressing those issues as we move forward and we will be in that group as well. Right. Board Member Walsh one thing I will add that's a little bit different. So with the stormwater budget. We also receive assistance and guidance from finance because it's general fund funding. We do have to take that guidance and what the expectations are for budgets. And so, do we have all the resources we need know, can we add them all know, because the guidance is on the general fund it's very limited and so we don't have enough funding from the assessment right now to meet all of our regulatory requirements as you see it supplemented by general fund. We don't have the ability to get more general fund either. So we're limited on that, but one thing I will say and what you all just approved that I think your last meeting that we're very excited about is our storm drain master plan, which is not only going to give us that initial look and condition assessment of the infrastructure, but we'll also have some financing plans for what we should look to do and what we should be investing in the future for the infrastructure. So we have some recommendations on what staffing may need to look like to keep and maintain that infrastructure. And then the other thing that we are consistently following and looking at is an opportunity to potentially have storm drain be a utility and have rates similar to water but right now it is, it is technically allowed. But there have been different groups who are very concerned about truly believing that it would be a prop 218 regulated utility and so we're kind of hoping that some city or district will go forward and try to set this utility up. Because we do believe that there will be a number of lawsuits and then we can see how that all plays out and then if it is supported by case law, we will definitely go after setting this up as a utility rate base. And I appreciate that conversation. And so then a couple of questions. I know we've gotten a 5347 split and an assessment right between storm water and Creek. And I'm not sure if measure J included creeks, you know just says storm water. We've got these complicated issues coming up doesn't qualify for prop 218 or not. And just a concern is do we have a consultant to walk us through as a bpu body to say we're doing things right. For instance, the loan there's a loan of in December 162022 the council approved the loan right between storm water fund. And was it the water fund or suicide and I didn't see that coming to the bpu. But if we have loans between funds and then it's going to be at the current, you know, Treasury pooled rate, plus some sort of risk factor right. So, it seemed to me we're favoring one fund over the other. So how would a consultant look at that inside okay because we have a resource available under contract to say to somebody look at this do they think it's okay. That's, that's sort of, that's what I'm looking at. Even if it's not just their staff but we have somebody to say, can you look at this is it okay, or we're bringing those issues with a whole mix of funding. Does this make sense. And that was, that was supported the finance department and inner fund loans go through the finance department to the city council. And so, so we don't have a consultant and we don't have funding for a re consultant for our storm water assessment. We are looking at that financing plan through the storm during master plan to provide us with those additional information going forward. So we're doing the same level of development and support of the storm water budget that was always done previously. So just now we're taking it through the BP you first before going to council. Yeah, that's understandable but just for instance, we're able to comment so okay. If we have a water or sewer fund, wanting to say storm water fund. And, but we also have emergency research right. So sort of those, those may be inconsistent. So if we had at least somehow we had knowledge and ability to discuss it. So if we had to hand or consult say no this is normal is how you do it and not just. And I want to say that this said that you, you can't tell us but somebody somebody talked to us about the interplay between 218 mitigation fiat general fund assessments and loan funding between the various enterprises that we have always just like that some sort of increased knowledge that I've looked at them all individually over time, you know, just being this that I'm like, sometimes I get my head spot. I don't know if I'm doing the right thing or not. Because they're come complicated with themselves in a complex when they enter play. So I just was saying hey, if you need resources I'm for to help explain this stuff to you so, and I appreciate the presentations, what you what you're all are doing is very, very important, and very complicated and complex, and you're doing great job with it so thank you very much. I will explain to you the you had asked about the 5347% split. I turned that into a percentage for you because when the assessment started it was $19. And it was $9 was to go for one and $10 was to go for the other so it was 919s and 1019s and I just turned it into a percentage for you of 5347 instead of, instead of explaining that but that's how that percentage split came up is that the assessment was $15 and $9 was to go to one and $10 was to go to the other and as the assessment increases we just keep that same percentage split for it. Gotcha. Yeah, I think everything's making sense, you know, just taken taken form by by nature over time, and I just kind of wanted to make sure I've got it sort of lined up. So I appreciate that. Thank you very much. That's all about your. Thank you board member wash for those, those in depth questions. I think board member Barthel. Yes, thank you. And great presentation. Thank you. Because I'm so new, I have probably some really basic questions. And if you think it's better that maybe I meet with, you know, deputy directors and Nina or something offline for those questions. That's 100% okay with me. I'm hoping we can turn back to the revenue slide that was towards the end of the presentation. I'm going to turn back to the slide number. Yeah, great. So, my, my questions were. And this is probably going to seem so elementary but they're a water revenue increase rate increase. They are based for sewer as well. And they're different percentages. And if I remember correctly, they are based on the consumer price index is that correct. No, okay. Okay, I'm just curious why one is higher than the other. So they are all dependent on that rate study. When we do the right study, we bring in all the data from all of our customers and the uses all of the expenses. And then we determine what we need in order to cover those expenses. And so sewer at the time needed only a 2% increase. We determined we probably could have even used a higher rate increase but we were doing our best at the time to be as conscious as we could towards our rate payers. And we had some of those undesignated fund balances so there was an actual intention to keep the rates a little bit lower and spend down some of the undesignated fund balance. But all of those percentages that come out for those increases are all based on the rate study that we do. And as we move forward with the next one, you will see all of that. So you will be right in the mix of seeing exactly all the data that comes in. And it's a quite a lengthy report that you will review in order to see how we determined what the rates should be. Okay, thank you. My next question was under sewer revenue increase. The bullet point demands the increase deferred payment of $5 million. I don't know exactly what that means. Would you mind if the quick. So we have deferred agreements for various types of development. There's this one probably came and I'm sorry I don't know exactly which development this came from but it could have been one of the downtown developments. They're allowed to defer their fees and so they have to sign a deferral agreement with us. And so they can connect to water and then when they get occupancy. Those deferral payments come in they also can use payment plans there are some payment plans available where they pay an interest rate on those payment plans and they pay them over five years. We this would have been one of those agreements that they must have finally achieved occupancy and so then they had to come in and pay those fees and so we got one big large chunk of money from them. Thank you. Great. And then I guess the other question I had and this is it looked like on the slide around the upcoming scheduling the meetings and stuff this is going to be a whole topic but the Sonoma water rate increase of 10 and a half percent. This just seems so high. But again I'm new here. I have no idea. And that may be a conversation for later. But that just struck me. You will be seeing that come before you fairly soon, because we have to go through that process. So the Sonoma water rate increase is approved by their board, which is basically the county supervisors. What happens in all of the process before then is that the technical advisory committee has a subcommittee, a budget subcommittee that budget subcommittee meets and goes over the budget itself and the rate increase and we make requests, you know as contractors for that rate increase to try to work to reduce that it has typically been between four and six percent. And so this is a much larger increase that we're seeing. Once it goes through that subcommittee, it then goes to the technical advisory committee who then makes a decision about whether or not to basically recommend so none of these are approval processes these are all just recommendations. And it also goes to you to recommend to city council that are representative who sits on the water advisory committee or the whack, how they are to vote for their recommendation then. So it goes through all these processes and all these recommendations before it actually gets to the body that makes the, the either the approval or the denial of the increase. And so we work very hard on it. We expect that that is going to come down. So we'll keep doing our due diligence as staff and bring that before you in, I believe it's March on the, on the calendar, the second meeting in March that you have. We'll be seeing it then with with much more detail, but that's what your process will be your process will just be whether or not you recommend that that rate move forward to city council so that city council can then decide how their whack member will vote on the recommendation from the water advisory committee. Okay, thank you. I think those are all my questions. It's a complicated process. Thank you. I have the same question about that 10 and a half percent that I think is the highest I've seen since I've been on the board. So that was a little bit surprising, although I do know obviously we are in a recession and there are significant increases of costs everywhere across across the board so to keep us posted on that figure I was hoping that you were going to say that's how the negotiation is starting and it'll go down because that's usually what we've heard in the past but unfortunately, as you said that you don't see it going down below that. I just had a question at, I think the storm water portion it will be what I personally need to do a little bit more research that's new to us and it's the first time we're kind of seeing it. And the rest of the presentation, really, really well organized and nothing was very surprising based off of what we've seen in the last few years. Could you just remind me who are tack and whack representative is for city council. It's Mayor Rogers for whack correct. Director Burke. And then Jennifer is actually the chair of the tack. Okay. So on the storm on the sorry, pardon me on the snowman water budget. It did come in higher to start, and this is where we are at, and you are corrected as much higher than we've seen, and not what we were anticipating nor hoping for. Well I appreciate I know that that is always a negotiation and a lot of work goes into that. So I appreciate your work on that. I don't have any additional questions or comments so we can open it up for a public comments and item 3.1. So if you wish to make a comment via zoom, please raise your hand. If you are dialing in via telephone, please dial star nine to raise your hand. Secretary man as do we have any live or pre recorded pre submitted comments at this time. Any comments on this item. All right well I believe that concludes the meeting for today we have no motions we need to make at this time. So we look forward to continuing our discussion on the budget and I know we have other meetings to schedule in the next coming month and month or so. So we will get more information then and really appreciate all your work. Thank you chair Watson can I just, I'd like to just give a friendly reminder to the committee. We have all meetings again starting in March, we go back to in person so just please keep that in mind. Thank you. Thank you. Bye, thank you.