>>> WE ARE RECORDING.
>> GOOD MORNING, WELCOME TO THE
DECEMBER 12th, 2022 SPECIAL
MEETING OF THE SEATTLE UTILITIE
AND TRANSPORTATION COMMITTEE.
OUR COMMITTEE WILL NOW COME TO
ORDER. THE TIME NOW IS 9:30 A.M
I'M ALEX PEDERSEN, CHAIR OF THE
ECONOMY. WILL THE CLERK PLEASE
CALL THE ROLL?
>> COUNCILMEMBER HERBERT?
>> HERE.
>> COUNCILMEMBER MORALES.
COUNCILMEMBER SAWANT.
COUNCILMEMBER STRAUSS.
>> FOUR PRESENT. HEARING NO
OBJECTION, THE AGENDA'S ADOPTED
CHAIR'S REPORT. GOOD MORNING,
EVERYONE, THANK YOU FOR
ATTENDING THE SPECIAL MEETING T
THE. IT'S CALLED A SPECIAL
MEETING WHENEVER IT'S NOT DURIN
THE REGULARLY SCHEDULED TIME.
WE'RE EXPECTING TO THE TO BE A
SHORTER MEETING. ON THE AGENDA
WE HAVE TWO ITEMS. ITEMS WE WER
JUST NOT ABLE TO FIT LAST NIGHT
THE FIRST IS AN INFORMATION
UPDATE FROM SEATTLE UTILITIES O
THE SHIP CANAL PROJECT. WE FIRS
HEARD ON THIS MEGAPROJECT THIS
PAST SUMMER. THE SECOND IS THE
BRIEFING FROM MOSS ADAMS ON
THEIR REGULARLY SCHEDULED ADULT
OF SEATTLE PUBLIC UTILITIES,
WHICH WE KNOW IS A $1.3 BILLION
ENTERPRISE. ONE LAST NOTE. I
WANT TO REMIND EVERYONE, THANKS
TO THE ADDITION OF TODAY'S
MEETING, WE ARE ABLE TO CANCEL
OUR JANUARY 3rd MEETING. I
REALLY WANT TO THANK SDOT AND
SPU FOR THE MANY DETAILED
PRESENTATIONS THEY'VE WITH
BROUGHT TO OUR COMMITTEE THIS
YEAR, AND TO OUR CITY COUNCIL
CENTRAL STAFFERS, INCLUDING
CALVIN CHOW, AND MANY OTHERS WH
HAVE WRITTEN MEMOS AND
LEGISLATION FOR US THIS PAST
YEAR. AND MANY THANKS TO OUR
COMMITTEE CLERK, HANNA FOR
KEEPING US ON TRACK. I LOOK
FORWARD TO STARTING UP OUR
COMMITTEE AGAIN ON JANUARY 17,
2023. BUT NOT SO FAST. WE STILL
HAVE TO MAKE IT THROUGH TODAY.
SO LET'S GO TO PUBLIC COMMENT.
I'M NOT SEEING ANYBODY SIGNED U
FOR PUBLIC COMMENT ONLINE, OR I
PERSON. BUT I'LL GO AHEAD AND A
LEAST START THE BEGINNING OF TH
PUBLIC COMMENT PERIOD AND CLOSE
IT OUT. I WON'T GO THROUGH ALL
THE INSTRUCTIONS. AT THIS TIME,
WE WILL OPEN THE GENERAL PUBLIC
COMMENT PERIOD FOR THE SEATTLE
PUBLIC UTILITIES COMMITTEE.
AGAIN, IN OUR HYBRID MEETING
PROTOCOLS, WE ARE LOOKING TO SE
IF ANYBODY SIGNED UP ONLINE.
NOBODY IS. I.T., COULD YOU JUST
CONFIRM THAT FOR ME. YOU'RE NOT
SEEING ANYBODY SIGNED UP ONLINE
EITHER?
>> THERE ARE NO PUBLIC COMMENT
REGISTRANTS.
>> OKAY, AND WE ALSO HAVE NOBOD
IN PERSON. SO WITH THERE BEING
NO SPEAKERS PRESENT, I WILL GO
AHEAD AND CLOSE THE PUBLIC
COMMENT PERIOD FOR TODAY'S
TRANSPORTATION SEATTLE PUBLIC
UTILITIES COMMITTEE MEETING. WE
CAN NOW GO TO OUR FIRST
LEGISLATIVE ITEM ON THE AGENDA.
WILL THE CLERK PLEASE READ THE
FULL TITLE OF THE FIRST AGENDA
ITEM INTO THE RECORD?
>> AGENDA ITEM ONE. SHIP CANAL
WATER QUALITY UPDATE FOR
BRIEFING AND DISCUSSION.
>> I DO WANT TO RECOGNIZE
COUNCILMEMBER HERBOLD HAS BEEN
HERE AS WELL. GOOD MORNING,
THANK YOU COUNCILMEMBERS FOR
BEING HERE DURING THIS IS
SPECIAL TIME ON A MONDAY
MORNING. I HOPE YOU ALL HAD A
GOOD WEEKEND. SO LET'S GO AHEAD
AND GET INTO THIS ITEM HERE.
COLLEAGUES, TODAY, WE HAVE WITH
US, ANDREW LEE, THE CEO OF
SEATTLE PUBLIC UTILITIES. HIS
TEAM WILL UPDATE US ON THE $600
MILLION SHIP CANAL WATER QUALIT
PROJECT. AS WITH YOU KNOW, SPU
MANAGES THIS MEGAPROJECT. WE
WANTED TO HAVE ANOTHER SIX MONT
OR SO UPDATE ON ITS PROGRESS AN
CHALLENGES. I'LL TURN IT OVER T
SPU TO DO THEIR PRESENTATION.
GOOD MORNING, GENERAL MANAGER
LEE. WELCOME.
>> THANK YOU SO MUCH,
COUNCILMEMBER PEDERSEN AND
MEMBERS OF THE COMMITTEE. I'M
ANDREW LEE. THE SEATTLE PUBLIC
MANAGER AND CEO. I'M JOINED HER
TODAY WITH KERI BURCHARD-JUAREZ
AND THEN ALSO KEITH WARD WHO IS
OUR EXECUTIVE SPONSOR FOR THE
SHIP CANAL WATER QUALITY
PROJECT. SO WE CAN GO TO THE
NEXT SLIDE. WE'RE HERE TODAY TO
PROVIDE YOU WITH AN UPDATE FOR
THIS INCREDIBLY IMPORTANT
PROJECT. THE SHIP CANAL WATER
QUALITY PROJECT. I WILL START
OFF PROVIDING A BRIEF OVERVIEW,
AND PASS IT OFF TO KEITH WARD,
WHO WILL REALLY DIVE INTO COST
ESTIMATES, INCLUDING THE
PROJECT'S COST ESTIMATE, AND HE
WILL GIVE US A SCHEDULE ESTIMAT
GOING FORWARD. AS YOU KNOW, THE
SHIP CANAL WATER QUALITY PROJEC
IS A HUGE INVESTMENT. ONCE IT I
OPERATIONAL, IT WILL REDUCE
SEATTLE'S COMBINED SEWER
OVERFLOWS BY MORE THAN 75
MILLION GALLONS EACH YEAR. ON
THIS PROJECT, WE DO HAVE A JOIN
PROJECT AGREEMENT TOGETHER WITH
KING COUNTY WASTEWATER TREATMEN
DIVISION. THAT RESULTS IN A COS
SPLIT BETWEEN OUR TWO AGENCIES
ABOUT 65% OF THIS PROJECT IS
FUNDED BY SEATTLE PUBLIC
UTILITIES AND ABOUT 35% IS
FUNDED BY KING COUNTY AND THE
REGION. CRUX ON THIS OVERALL
PROGRAM WILL TAKE PLACE IN FIVE
DIFFERENT SEATTLE LOCATIONS,
WHICH YOU CAN SEE HERE ON THIS
MAP. IT INCLUDES A 2.7-MILE LON
STORAGE TUNNEL, WHICH IS THAT
KIND OF GRAY BLUISH LINE THAT
CONNECTS THE SITES. OUR FIRST
CONSTRUCTION PROJECT BEGAN IN
2018 AT THE UPPER LEFT CORNER I
THIS BALLARD SITE. WE HAVE THRE
OTHER. ONE S. ONE IS UNDER
CONSTRUCTION, AND ONE WILL STAR
NEXT YEAR. THIS PROJECT IS ONE
OF OUR MANY PROJECTS, IN OUR
CONSENT DECREE WITH EPA FOR
SEWAGE OVERFLOWS. AND THAT ALSO
INCLUDES A REGULATORY COMPLETIO
DATE OF DECEMBER 31st OF 2025
FOR THIS OVERALL PROGRAM. GO TO
THE NEXT SLIDE. SOW THIS BRINGS
US TO WHY WE'RE HERE TODAY. WE
ARE HERE TODAY BECAUSE WE OUR
DEPARTMENT FLAGGED AN ISSUE FOR
COUNCILMEMBER PEDERSEN, AND HE
REQUESTED THAT WE UPDATE THE
COMMITTEE ON THIS ISSUE THIS
MORNING. TO SUMMARIZE THE ISSUE
WE ANTICIPATE NEEDING TO
INCREASE THE BUDGET, AND TO ALS
EXTEND THE SCHEDULE FOR
COMPLETION OF THIS MEGA PROJECT
THIS SHIP CANAL WATER QUALITY
PROJECT. BEFORE WE DESCRIBE THE
CHALLENGES OF THE PAST FEW
YEARS, I WANT TO ASSURE THE
COMMITTEE THAT SPU IS COMMITTED
TO MANAGING THIS PROGRAM COST
WITHIN OUR EXISTING RATE PATH,
ESTABLISHED IN OUR EXISTING
STRATEGIC BUSINESS PLAN.
PROVIDING A PREDICTABLE RATE
PATH IS PART OF OUR DEPARTMENT'
COMMITMENT TO OUR CUSTOMERS, AN
SO WHILE WE MAY ADJUST THIS
PROJECT'S COST, WE WILL STILL
MANAGE IT WITHIN OUR RATE PATH
THAT WE COMMITTED TO PREVIOUSLY
THE BUDGET AND SCHEDULE FOR THE
SHIP CANAL WATER QUALITY PROJEC
WAS ESTABLISHED FOUR YEARS AGO
IN 2018. AND AS YOU ARE ALL
AWARE, OVER THE PAST FOUR YEARS
THE PROJECT AND OUR ENTIRE LIVE
HAVE EXPERIENCE ABOUTED
UNPRECEDENTED EVENTS, THAT
INCLUDES UNPRECEDENTED
ESCALATION, BECAUSE OF
INFLATION. ALSO, ALL THE
CHALLENGES RELATED TO COVID-19,
AND OTHER RISK EVENTS THAT ARE
ACTUALLY VERY COMMON TO
CONSTRUCTION PROJECTS. WE ARE
NOW DOING A COMPREHENSIVE
PROJECT REVIEW AND UPDATE, SO
ALL OF THESE EVENTS CAN BE
REFLECTED IN OUR BUDGET, AND OU
SCHEDULE. AT THIS POINT, I'M
GOING TO PASS THE PRESENTATION
OFF TO OUR PROJECT EXECUTIVE
KEITH WARD, WHO WILL WALK US
THROUGH MORE DETAILS ABOUT OUR
COST ESTIMATES, AND OUR
ANTICIPATED SCHEDULE FOR
COMPLETING THE PROJECT SO AT
THIS POINT, I'LL PASS IT OFF TO
KEITH.
>> THANK YOU, ANDREW. SO AS
ANDREW NOTED, OUR CURRENT BUDGE
WAS ESTABLISHED IN 2018. IT WAS
A $570 MILLION BUDGET. I'M GOIN
TO PROVIDE A BRIEF INTRODUCTION
TO THE DATA WE USED TO ESTABLIS
THE COST ESTIMATE. THE COST
ESTIMATE INCLUDES THE FOLLOWING
BASE COST, LIKE CONSTRUCTION,
AND PROPERTY COSTS, AND
ESCALATION, WHICH IS AN INFORME
PREDICTION OF HOW MUCH COSTS
WILL INCREASE IN THE FUTURE.
THESE ARE INCLUDED AS SINGLE
VALUE. WE USE HISTORICAL
AVERAGES AND CURRENT TRENDS. TH
COST ESTIMATE ALSO INCLUDED OUR
UNCERTAINTIES AND RISKS.
UNCERTAINTIES AND RISKS ARE
UNKNOWNS THAT WE CAN'T KNOW
UNTIL A LATER DATE. FOR BOTH OF
THESE, WE SET ASIDE RESERVES OR
CONTINGENCY TO COVER IMPACTS
BASED ON THEIR PROBABLABILITY.
IF A RISK HOLDS A 40%
PROBABILITY, WE'LL SET ASIDE 40
OF THE COST TO COVER IT. OUR
COST ESTIMATE ALSO INCLUDED A
CONFIDENCE, WHICH IS STANDARD
PRACTICE FOR VERY LARGE
PROJECTS. CONFIDENCES REFLECT
THE UNBEARABILITY AND
UNCERTAINTY IN OUR PROJECT.
BUDGETS CAN'T HAVE ALL
UNCERTAINTY, UNLESS SET AT A
VERY HIGH BUDGET. THIS MEANS IN
2018, OUR ESTIMATES ON
CERTAINTIES AND RISKS, THERE WA
A 65% CHANCE THAT COSTS WOULD B
AT, OR BELOW 570 MILLION WHEN W
FINISH THE PROJECT, AND A 35%
THAT WE WOULD BE ABOVE THIS.
MOST AGENCIES BUDGET BETWEEN 50
AND 80% CONFIDENCE. IF TOO HIGH
IS BUDGETED, THEN FUNDS FOR
ANOTHER PROJECT MAY NOT BE
AVAILABLE. IN MY 2018
PRESENTATION TO THIS COMMITTEE,
I NOTED OUR BUDGET DIDN'T COVER
SIGNIFICANT COST IMPACTS OR
DELAYS, MAJOR RISK EVENTS, OR
ESCALATION BEYOND THE
SIGNIFICANT AVERAGES.
UNFORTUNATELY, THIS IS EXACTLY
WHAT WE'VE EXPERIENCED. I'M NOW
GOING TO TALK ABOUT TWO AREAS
THAT HAVE RECENTLY IMPACTED OUR
BUDGET. MAJOR CHALLENGE FOR US
IS RECORD HIGH ESCALATION. I
MENTIONED THIS TO YOU IN MY JUL
PRESENTATION OF THIS YEAR. THE
THREE CONSTRUCTION RELATED
INDUSTRIES SHOW THE PERCENT HE
IS COLLISION FROM ESCALATION
FROM 2008 TO 2022, FOR ITEMS
LIKE CONSTRUCTION LABOR,
MATERIALS, AND EQUIPMENT. TO TH
LEFT OF THE BLUE LINE, YOU CAN
SEE THAT IN GENERAL BETWEEN 200
AND MID-2017, THE ANNUAL CHANGE
STAYED UNDER 5%. OUR 2018 COST
ESTIMATE WAS COMPLETED DURING
WHAT WAS CONSIDERED A PERIOD OF
HIGH ESCALATION FROM 2017, TO
2018. AND WE ASSUME THE THE
SEATTLE AREA WOULD RETURN TO TH
HISTORICAL AVERAGE WITHIN FIVE
YEARS OF WHEN WE DEVELOPED OUR
BUDGET. IT WAS ON TRACK TO DO
THAT. BUT MORE RECENTLY, THESE
ESCALATIONS ARE CHANGING AT
BETWEEN 15 TO 20% ANNUALLY. THI
IS RECORD-SETTING, AND IMPACTS
THE BID'S CONSTRUCTION PROJECTS
RECEIVED. EARLY NEXT YEAR, WE
WILL ADVERTISE OUR FINAL
CONSTRUCTION PACKAGE, CALLED TH
BALLARD PUMP STATION. ON THIS
$525 MILLION PROJECT, WE NOW
CURRENTLY ESTIMATE THAT
ESCALATION WILL COST UP TO $30
MILLION MORE THAN PREVIOUSLY
ESTIMATED. WE'VE ALSO
ENCOUNTERED UNDERGROUND RISK
EVENTS, AND I'M GOING TO MENTIO
A FEW HERE. I WANT TO ASSURE YO
THAT OUR STORAGE TUNNEL PROJECT
DID PREPARE FOR THE VARIABILITY
OF UNDERGROUND WORK. TO DESIGN
THE PROJECT, WE PERFORMED 73
BORINGS ALONG THE TUNNEL LINE T
ASSESS SOIL AND GROUNDWATER
CONDITIONS. THEN WE INTEGRATED
THE GROUND CONDITION INTO THE
CONTRACTOR'S MATERIAL. ER THIS
INCLUDED TELLING THE CONTRACTOR
TO EXPECT UP TO 88 BOULDERS
GREATER THAN THREE FEET IN
DIAMETER. UNFORTUNATELY, THIS
PAST SPRING, WE ENCOUNTERED A
RISK THAT WAS UNDER 5% LIKELY.
THE LARGEST BOULDER, WHICH WAS
12 FEET IN DIAMETER. OUR TEAM,
INCLUDING OUR CONTRACTOR WORKED
DILIGENTLY TO GRIND THROUGH THI
MEGABOULDER. WE ARE ASSERTING
DAMAGES OF ABOUT 3.5 MONTHS
SCHEDULE DELAY, AND $16 MILLION
COSTS. WE HAVE RETAINED EXPERTS
AND ARE WORKING CLOSELY WITH OU
CITY ATTORNEYS TO DEFEND US
AGAINST THESE COSTS. WE ALSO
DISCOVERED UNDERGROUND
INFRASTRUCTURE THAT WASN'T
ACCURATELY REFLECTED IN 100
YEARS OLD HISTORICAL RECORDS.
THESE ARE RECORDS IN WHICH
PEOPLE DOCUMENT HOW THEY
ACTUALLY INSTALLED NEW
INFRASTRUCTURE. UNFORTUNATELY,
THIS DIFFERENTING CONDITION COS
ABOUT $1.8 MILLION. WE'VE DONE
WORK TO DEVELOP PRELIMINARY
ESTIMATES BASED ON THESE
IMPACTS. OUR PRELIMINARY
ASSESSMENT INDICATES 8 TO 14%
INCREASE IN THE CURRENT PHOTO
TOTAL PROJECT BUDGET TO $650
MILLION, OR A 45 TO $80 MILLION
INCREASE IN BUDGET. OUR PROJECT
UPDATE, WHICH WILL GIVE CAN US
BUDGET, AND I'LL TALK ABOUT THE
TIMING OF THIS IN A FEW MINUTES
KING COUNTY'S SHARE OF THE
INCREASE IS ABOUT A THIRD. WE
ARE CONTINUING TO IMPLEMENT
COST-SAVING MEASURES, BY JUST
CLANGING OUR CONTRACT TERMS TO
SHARE RISK FOR ESCALATION
INCREASES, WHICH SHOULD DECREAS
BID COSTS. PLEASE NOTE THAT THE
PROJECT COSTS WILL BE MANAGED
WITHIN OUR EXISTING RATE PATH,
WITH NO IMPACT FOR THE CITY'S
GENERAL FUND. SPU WILL
REPRIORITIZE SOME OF OUR SEWER
CAPACITY IMPROVEMENT PROJECTS
OVER THE NEXT SEVERAL YEARS IN
ORDER TO ACCOMMODATE THE COST
INCREASE WITHIN OUR CURRENT
RATE. RISK EVENTS SUCH AS DELAY
IN TUNNELING HAVE ALSO IMPACTE
OUR SCHEDULE. OUR PRELIMINARY
ESTIMATES INDICATE PROJECT
CONSTRUCTION WILL EXTEND BEYON
OUR INCENTIVE DECREE.
INCENTIVES FOR ACCELERATING WOR
IN OUR LAST CONSTRUCTION
PROJECT. WE ARE ALSO ENFORCING
DISCUSSIONS WITH OUR REGULATORS
THESE DISCUSSIONS TALK ABOUT HO
FORCES BEYOND OUR CONTROL VOIR
CAUSED OUR SCHEDULE TO EXTEND.
WE'RE ALSO USING LIQUIDATED
DAMAGES, WHICH ARE FINANCIAL
PENALTIES IF OUR CONTRACTORS DO
NOT ACHIEVE THE MILESTONE ON
TIME. S AS I'VE SAID, WE'RE
WORKING ON A CONSTRUCTION
UPDATE. THIS IS BUILT AROUND TH
ADVERTISING AND BIDDING FOR OUR
BALLARD PUMP STATION AND
CONVEYANCE PROJECT, WHICH WILL
TAKE PLACE BETWEEN FEBRUARY AND
MAY OF NEXT YEAR, AND IS SHOWN
ON THIS GRAPHIC IN LIGHT GRAY.
KNOWING THE BID AMOUNT FOR OUR
LAST CONSTRUCTION PACKAGE WILL
PROVIDE US MORE BUDGET CLARITY.
WE ARE PREPARING BUDGET
SCENARIOS IN ADVANCE OF THIS
BID. THIS WILL ALLOW US TO
PREPARE FOR DIFFERENT BIDDING
SCENARIOS. WE'LL REVIEW
SCENARIOS WITH OUR TEAM IN
FEBRUARY AND MARCH. AFTER WE GE
BIDS, WE CAN RELATIVELY QUICKLY
CREATE A REVISED BUDGET AND
SCHEDULE. WE EXPECT TO HAVE THI
IN JULY 2023. WE HOPE TO COME
BACK TO THIS COMMITTEE AROUND
THAT TIME. PLEASE NOTE THAT
WHILE WE WORK ON THE UPDATE, WE
ARE IT CONTINUING TO DELIVER
THIS PROJECT. THIS INCLUDES
COMPLETING THE MAJORITY OF OUR
STORAGE TUNNEL, COMPLETING THE
8-FOOT DIAMETER TUNNEL UNDER TH
SHIP CANAL, AND COMPLETING OUR
CONSTRUCTION PROJECT IN LESS
THAN A MONTH. WE WANT TO THANK
YOU FOR ALLOWING US TO COME TO
THE COMMITTEE TODAY. I JUST
WANTED TO QUICKLY SUMMARIZE
TODAY'S UPDATE. THE SHIP CANAL
WATER QUALITY PROJECT HAS BEEN
IMPACTED BY ESCALATION, THE
PANDEMIC, AND UNDERGROUND RISK
EVENTS. WE ANTICIPATE RELEASING
A REVISED BUDGET AND EXTENDED
SCHEDULE IN THE SUMMER OF 2023.
DESPITE THIS ANTICIPATED BUDGET
INCREASE, SEATTLE PUBLIC
UTILITIES IS COMMITTED TO
MANAGING PROJECT COSTS WITHIN
OUR RATE PATH ESTABLISHED. THAN
YOU.
>> THANK YOU. COLLEAGUES, ANY
QUESTIONS? I'VE GOT A COUPLE OF
COMMENTS. BUT ANY QUESTIONS FRO
COLLEAGUES ON THIS UPDATE?
COUNCILMEMBER HERBOLD, PLEASE.
>> THANK YOU. I WAS INTERESTED
TO KNOW A LITTLE BIT MORE ABOU
THE INFORMATION AROUND THE
COUNTY'S SHARE TO ADDRESS THE
UNANTICIPATED COSTS. CAN YOU
JUST TALK A LITTLE BIT ABOUT
WHAT THAT ONE THIRD RATIO IS
BASED UPON? AND WHAT OUR
CONVERSATIONS HAVE BEEN YET WIT
KING COUNTY ABOUT THIS
EXPECTATION?
>> SURE. WE HAVE A JOINT PROJEC
AGREEMENT, WHICH IS A
CONTRACTUAL DOCUMENT RATIFIED B
BOTH COUNCILS I THINK IN 2015,
AND THERE'S TWO TYPES OF COST
SHARING. THE MAJORITY OF THE
PROJECT ELEMENTS ARE AT A 65%,
35% COST SHARE, WHICH IS 65% FO
THE CITY. 35% FOR THE COUNTY.
THERE ARE A COUPLE PROJECTS
WHICH ARE BASICALLY FOR SPU,
WHICH ARE 100% FOR OUR COST
SHARE. SO IN GENERAL, ONCE YOU
FACTOR THOSE IN, ANY TYPE OF --
GENERALLY, THE OVERALL PROJECT
COSTS, AND EVEN THE COST
INCREASES WILL BE ABOUT 69, 70%
FOR THE CITY, 30% FOR THE
COUNTY. WE'VE BEEN VERY
TRANSPARENT. THAT'S A REALLY BI
THING FOR OUR TEAM IN WORKING I
PARTNERSHIP WITH THE COMMITTEE.
THEY ARE FULLY AWARE OF
EVERYTHING I'M PRESENTING TO YO
TODAY.
>> THANK YOU.
>> COUNCILMEMBER, JUST ONE
OTHER. YOU ASKED WHAT THE COST
SHARE IS BASED OFF OF. BACK IN
2015, WE EACH HAD THE OPTION OF
COMPLETING, OR ADDRESSING THE
PROBLEMS OF SEWAGE OVERFLOWS
INDEPENDENTLY, OR JOINTLY. AND
SO WHAT WE DID WAS WE CALCULATE
IF WE WERE TO DO IT
INDEPENDENTLY, HERE'S HOW MUCH
THAT WOULD HAVE COST, AND HERE'
WHAT SPU WOULD HAVE PAID THE
PORTION OF THE TOTAL. AT THE
TIME, IT WAS LESS EXPENSIVE FOR
US OBVIOUSLY TO DO A JOINT
PROJECT, SO WE BASED THE SHARES
ON WHAT WE WOULD HAVE PAID
INDEPENDENTLY, OUR SHARES. THAT
HOLDS FOR INCREASES, AND ALSO
BASED OFF THE SAME RATIO.
>> VERY HELPFUL. THANK YOU.
>> THANK YOU. COLLEAGUES ANY
OTHER COMMENTS OR QUESTIONS? I
WANT TO THANK SPU FOR THIS
IMPORTANT UPDATE. OBVIOUSLY, WE
SAW THE ISSUE WITH THE MEGA
BOULDER, WE'RE VERY FAMILIAR
WITH COVID IMPACTS. I
APPRECIATED YOUR PRESENTATION
BACK, I BELIEVE IT WAS JULY
19th, WHERE YOU RECOGNIZED SOME
COST SAVINGS YOU HAD ACHIEVED
THROUGH VALUE ENGINEERING, AND
REFINANCING OF DEBT, WHICH WAS
IMPORTANT SO YOU COULD MANAGE
THESE COST INCREASES NOW. AND
KEEPING US WITHIN THE EXISTING
RATE PATH THAT WE HAD APPROVED
IS SO IMPORTANT FOR OUR RATE
PAYERS SINCE THOSE UTILITY BILL
ARE GENERALLY REGRESSIVE, UNLES
PEOPLE ARE ENROLLED IN THE
UTILITY DISCOUNT PROGRAM, AND
THEN NOT IMPACTING OUR REGULAR
BUDGET, YOU KNOW, OUR GENERAL
FUND BUDGET, JUST TO MANAGE IT
WITHIN SPU IS REALLY IMPORTANT.
SO THANK YOU FOR YOUR DILIGENCE
IN DOING THAT. WE'LL WANT TO
HAVE YOU BACK HERE AGAIN. NO
LATER THAN SIX MONTHS FROM NOW,
I WOULD SAY. AND WE'LL INCREASE
THE FREQUENCY AS NEEDED FOR OUR
OVERSIGHT ROLE. BUT I APPRECIAT
YOUR TEAMS BALANCING THE
TRANSPARENCY OF PRESENTING THIS
INFORMATION WITH THE
CERTAINTITY, YOU KNOW, COMING T
US WITH A RELATIVELY FIRM RANGE
OF WHAT THE COSTS WILL BE.
COLLEAGUES, ANY FINAL NOTES, OR
GENERAL MANAGER LEE, ANY
PARTING COMMENTS? OKAY. WELL
THANK YOU, EVERYBODY. WE'LL GO
AHEAD AND WE'LL BE IN TOUCH, I
KNOW, AND WE'LL GO AHEAD AND GO
ONTO ITEM NUMBER TWO. WHICH IS
THE LAST ITEM ON OUR AGENDA
TODAY. WILL THE CLERK PLEASE
READ THE FULL TITLE INTO THE
RECORD?
>> MOSS ADAMS 2022 AUDIT PLAN O
SEATTLE PUBLIC UTILITIES FOR
BRIEFING AND DISCUSSION.
>> THANK YOU, COLLEAGUES TODAY
WE'LL HEAR FROM THE INDEPENDENT
ACCOUNTING FIRM MOSS ADAMS ON
THEIR PLAN FOR ITS REGULARLY
SCHEDULED FINANCE AUDIT OF
SEATTLE PUBLIC UTILITIES. BEFOR
WE TURN IT OVER TO MOSS ADAMS,
JUST WANTED TO WELCOME BRIAN
GOODKNIGHT FROM OUR CENTRAL
STAFF. IS THERE ANY OPENING
REMARKS YOU HAVE BEFORE WE TALK
ABOUT THIS SORT OF ENTRANCE
STAGE OF THE ADULT?
>> THANK YOU, CHAIR. YES, BRIAN
GOODKNIGHT. COUNTY CENTRAL
STAFF. JUST TO SAY THAT SPU IS
REQUIRED TO HAVE THESE ADULTS O
ALL THREE OF ITS ENTERPRISE
FUNDS. THEY'RE HERE TODAY TO
TALK ABOUT THEIR KIND OF ADULT
PLAN FOR 2022 AND THEY TYPICALL
COME BACK WITH THE RESULTS OF
ADULTS AROUND THE MAY/JUNE
TIMEFRAME OF THE FOLLOWING YEAR
THANK YOU.
>> THANK YOU VERY MUCH. OKAY,
WELCOME MOSS ADAMS.
>> ALL RIGHT. THANK YOU. AND
GOOD MORNING. I'M LAURIE TISH.
WITH ME TODAY TO GIVE THE
PRESENTATION IS NICOLE SIEKMEIE
JAMES. AND SHE IS MANAGING THE
PROJECT FOR OUR TEAM. AT THIS
POINT, WE DO HAVE A SHORT
POWERPOINT TO SHARE WITH YOU AS
WE WALK ALONG, AND I WILL START
SHARING MY SCREEN NOW TO WALK
YOU THROUGH THAT. ALL RIGHT. AN
IF YOU COULD JUST GIVE ME A
QUICK OKAY THAT YOU ARE SEEING
MY --
>> YES. WE SEE IT.
>> ALL RIGHT. WELL I WILL START
OFF GOING THROUGH THE SCOPE OF
SERVICES. WE DO PERFORM OUR
ADULTS IN ACCORDANCE WITH TWO
DIFFERENT SETS OF STANDARDS. TH
U.S. GENERALLY ACCEPTED
STANDARDS, WHICH IS GENERALLY
THE BASE LAYER, IF YOU WILL.
THEN WE ALSO OVERLAP THAT WITH
GOVERNMENT AUDITING STANDARDS,
WHICH IS REALLY DONE IN
CONNECTION WITH THE STATE
AUDITOR, WHO AUDITS THE CITY OF
SEATTLE UNDER AUDITING
STANDARDS. IT DOES OVERLAY AN
ADDITIONAL REPORT ON INTERNAL
CONTROL. SO WE SPEND A LITTLE
MORE EFFORT AND TIME ON LOOKING
A THE INTERNAL CONTROLS AS THEY
PERTAIN TO THE GENERATION OF
THOSE FINANCIAL STATEMENTS. SO
IT WOULDN'T BE APPARENT TO YOU
AS THE CLIENT THAT WE'RE USING
TWO DIFFERENT SETS OF STANDARDS
ONE OVERLAID ON TOP OF THE
OTHER, BUT AGAIN, IT DOES ADD A
LITTLE MORE EFFORT AND TIME ON
OUR PART FROM CONTINUING
EDUCATION REQUIREMENTS, LOOKING
AT INTERNAL CONTROLS, AND OUR
INDEPENDENCE WITH THE CITY AND
WITH SEATTLE PUBLIC UTILITIES.
WE WILL BE ISSUING THREE
DIFFERENT SETS OF REPORTS. WE D
SEPARATE ADULTS OF EACH FUND. S
THE WATER FUND DRAINAGE AND
WASTEWATER, AND SOLID WASTE. NO
AS I MENTIONED, WE WILL ALSO BE
ISSUING AN INTERNAL CONTROL
REPORT RELATED TO EACH OF THOSE
FUNDS ON INTERNAL CONTROLS
RELATED TO THE FINANCIAL
STATEMENTS AND COMPLIANCE WITH
LAWS AND REGULATIONS THAT
PERTAIN TO THOSE FINANCIAL
STATEMENTS. WE WILL ALSO BE
COMING BACK AS BRIAN MENTIONED.
WE'LL BE COMING BACK TO YOU AT
THE CONCLUSION OF OUR AUDIT
LATER THIS NEXT SPRING TO GO
OVER THE RESULTS. JUST AS A
REMINDER, WE'RE THE AUDITORS,
AND OUR ROLE IS TO ACTUALLY FOR
AND EXPRESS AN OPINION ON
WHETHER THOSE THREE SETS OF
FINANCIAL STATEMENTS ARE
PREPARED AND PRESENTED WITH
GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES. WE'RE ALSO REQUIRED
TO COMMUNICATE TO THIS BODY ANY
SIGNIFICANT MATTERS THAT COME
UP, AND THEN COME BACK AT THE
END AND REPORT BACK TO YOU. NOW
I WOULD NOT WAIT UNTIL NEXT
SPRING IF SOMETHING MATERIAL
WOULD COME UP. WE WOULDK IN
CONTACT WITH ALEX AND WITH THIS
COMMITTEE RIGHT AWAY WHEN THAT
CAME UP. BUT THE OTHER THING I
WANTED TO MENTION IS JUST, THER
IS A RESPONSIBILITY OF
MANAGEMENT. THAT IS THAT THEY
PREPARE THE FINANCIAL STATEMENT
WITH YOUR OVERSITE. THEY GOVERN
THE INTERNAL CONTROL STRUCTURE
THAT RELATES TO THOSE FINANCIAL
STATEMENTS, AND JUST AS A
REMINDER, AS WELL, WE ARE
AUDITING THE FINANCIALS, BUT
THAT'S NOT NECESSARILY MEANING
THAT WE'RE DESIGNING PROCEDURES
THAT LOOK INTO CERTAIN AREAS
WHERE AGAIN, OUR MAIN PURPOSE I
TO PRESENT THAT OPINION ON THE
FAIRNESS OF PRESENTATION OF THE
FINANCIAL STATEMENTS. BUT AS
YOU'LL SEE LATER WHEN I HAVE A
SLIDE HERE THAT I'M GOING TO BE
GETTING INQUIRIES FROM YOU, WE
ARE VERY INTERESTED TO HEAR IN
WHAT AREAS OF BRISK YOU THINK
PERTAIN THE MOST TO THESE
ENTITIES, AND AREAS THAT YOU'D
LIKE US TO LOOK INTO. I SAY THA
WITH RESPECT THAT'S INTO OUR
PURPOSE, BUT WE'RE ALSO VERY
AWARE OF RISKS AND WE DO WANT T
HEAR FROM YOU WITH REGARD TO
THAT. I'M GOING TO TURN IT OVER
TO NICOLE, WHO'S GOING TO GO
OVER THE TIMELINE AND SOME OF
THE AREAS THAT WE BELIEVE HAVE
THE MOST RISK IN THE FINANCIAL
STATEMENTS AND LET YOU KNOW WHA
WE WILL BE COVERING. NICOLE.
>> YES, THANK YOU, LAURIE. SO
THIS SLIDE GIVES AN OVERVIEW OF
OUR GENERAL TIMELINE FOR THE
AUDIT PROCEDURES. IT'S SORT OF
BROKEN INTO TWO CHUNKS WITH THE
CHANGE IN THE CALENDAR YEAR. SO
WE'RE COMING TO THE END OF OUR
PRELIMINARY PLANNING PHASE,
WHICH STARTED BACK IN SEPTEMBER
WE'VE BEEN DOING PLANNING FOR
THE ADULT, AND WE'LL BE
PERFORMING TESTING OVER I.T.
SYSTEMS AND GENERAL CONTROLS. W
HAVE A SPECIAL I.T. SPECIFIC
TEAM THAT ASSISTS WITH THAT. WE
ALSO PERFORMED INTERIM WORK
WHICH FOCUSES ON INTERNAL
CONTROLS WITH FINANCIAL
REPORTING PROCESSES. AND HERE W
ARE IN DECEMBER PRESENTING TO
YOU. AFTER THE FIRST OF THE
YEAR, AND SPECIFICALLY IN MARCH
AND APRIL, WE'LL BE PERFORMING
OUR FINAL FIELD WORK PROCEDURES
WHERE WE'LL BE DOING THE BULK O
OUR TESTING WORK, AND WE WILL B
ISSUING OUR REPORT BY OUR
DEADLINE OF APRIL 30th, FOLLOWE
BY EXIT PRESENTATIONS TO YOU IN
MAY. SO THIS SLIDE DETAILS SOME
OF THE SPECIFIC RISKS WE HAVE
IDENTIFIED THROUGH OUR PLANNING
PROCEDURES, WHICH IS BASED ON
OUR UNDERSTANDING OF THE
UTILITIES, AND THE INDUSTRY. AN
WHAT WE KNOW ABOUT ACTIVITY
DURING THE YEAR SO FAR. SO SOME
OF THESE KEY ITEMS INCLUDE
UTILITY PLANNING DISCUSSION, TH
SHIP CANAL PROJECT, WHICH WAS
DISCUSSED PREVIOUSLY. DEBT AND
RELATED ACCOUNTS, A UNDERSTAND
BOND ISSUANCES AND THERE'S A LO
OF WORK TO PER PERIFORATE TO
THAT. CAPITALIZED INTEREST.
OPERATING REVENUES. OPERATING
EXPENSES, AND IN GENERAL I.T.
AND COMPUTER CONTROLS. BASED ON
THESE IDENTIFIED AREAS, THIS
HELPS GUIDE OUR FINAL ADULT PLA
THAT WE DEVELOP, AND THE
PROCEDURES THAT WE WILL BE
PERFORMING. SO OUR
RESPONSIBILITY AS AUDITORS IS T
PROVIDE REASONABLE STATEMENTS -
SO WE AS AN ENGAGEMENT TEAM HAV
DISCUSSIONS AND PERFORM RISK
ASSESSMENTS TO IDENTIFY WHAT
THOSE RISKS ARE, AND THEN TO
DESIGN AND THEN PERFORM
PROCEDURES TO SPECIFICALLY
ADDRESS THOSE IDENTIFIED RISKS.
LIMITATIONS IN AN AUDIT. THERE
ARE SOME RISKS. HOWEVER, WE DO
THE BEST WE CAN TO PERFORM OUR
RISK ASSESSMENT, AND DESIGN
PROCEDURES TO PREVENT THAT FROM
HAPPENING. SO SOMETHING THAT
HAS BEEN MANGESSED MENTIONED
IS THE CONCEPT OF MATERIALITY.
THE MATERIAL OF A STATEMENT.
IT'S A THRESHOLD FOR AN AMOUNT,
A DOLLAR AMOUNT IN THE
FINANCIALS, BUT COULD IMPACT
THE USERS OR INDIVIDUALS OF THE
FINANCIAL STATEMENTS. SO WE'VE
SET THIS AMOUNT, BASED ON
CERTAIN QUANTITYIVE AND
QUALITATIVE FACTORS, AND IT
HELPS, GUIDE VARIOUS THINGS
THROUGHOUT THE AUDIT, SUCH AS
OUR SIGNIFICANT RISK AREAS,
WHAT IS CONSIDERED TO BE OF
INTEREST TO STAKEHOLDERS, AND
THE NATURE, TIMING, AND EXTENT
OF THE TESTING WORK THAT WE'LL
BE PERFORMING.
>> I WILL ADD SOMETHING ONTO
NICOLE'S POINT. WHEN WE ADULT A
PUBLIC SECTOR ENTITY, A
GOVERNMENTAL ENTITY SUCH AS
YOURSELVES, THE QUALITATIVE
FACTORS ARE MUCH MORE IMPORTANT
THAN A COMMERCIAL ENTERPRISE,
BECAUSE WE ARE AWARE OF HOW
YOU'RE FUNDED THROUGH
TAXPAYERS, AND THROUGH YOUR
CITIZENS. FOR EXAMPLE, THERE
MAY BE AN ACCOUNT THAT'S NOT
FINANCIALLY, OR METRICALLY
MATERIAL TO THE FINANCIAL
STATEMENTS, BUT IT MAY BE VERY
IMPORTANT TO YOUR CITIZENS AND
TO YOUR RATE PAYERS. SO WE DO
TRY TO TAKE SPECIAL CARE IN
LOOKING AT THAT THROUGH THAT
LENS, THROUGH THE RATE PLAYER'S
LENS ON THAT IMPORTANCE.
ANYTHING ON DEPOSITS THEY MAY
HAVE WITH THE UTILITY, TO OTHER
TYPES OF ACCOUNTS THAT ARE
IMPORTANT TO THEM. WE DO TAKE A
VERY DIFFERENT APPROACH THAN
WE WOULD A PRIVATE ENTERPRISE.
OUR ADULT OPINION WILL
POTENTIALLY SHOW UP IN OTHER
TYPES OF DOCUMENTS, SUCH AS A
BOND OFFERING, OR ANNUAL
REPORT. AND WE UNDERSTAND THAT
WHEN WE ISSUE AN ADULT OPINION
TO YOU, THAT YOU DO HAVE
VARIOUS USES FOR THOSE ADULT
OPINIONS, AND WE JUST HAVE A
REQUEST UNDER AUDITING
STANDARDS THAT WHEN THAT
OCCURS, THAT WE HAVE A CHANCE
TO READ THE DOCUMENT THAT OUR
OPINION IS GOING INTO. WE DO
THAT JUST TO MAKE SURE
CIRCUMSTANCES HAVEN'T CHANGED,
OR THAT IT IS BEING USED
APPROPRIATELY, AND FOR THE
PURPOSE THAT WE INTENDED WHEN
WE ISSUED THE OPINION. WE DO
HAVE A GOOD RELATIONSHIP WITH
MANAGEMENT, THEY DO GIVE US A
DRAFT AHEAD OF TIME, SO HE HAVE
A CHANCE TO LOOK AT THAT. THIS
IS MORE OF A -- I WILL NOT BORE
YOU AND SPEND A LOT OF TIME ON
THIS AREA. THESE ARE THE NEW
ACCOUNTING PRONOUNCEMENTS THAT
WERE ISSUED BY THE GOVERNMENTAL
ACCOUNTING STANDARDS BOARD.
THESE ARE THE ONES THAT ARE
COMING UP FOR IMPACT FOR THIS
YEAR, FOR FISCAL '22. THE
BIGGEST ONE IS THE LISA
STANDARD. ONE OF HAVE BEEN
WORKING WITH MANAGEMENT ON THIS
FOR PROBABLY THE LAST 18 MONTHS
IN PREP FOR THIS. THIS DOES
CHANGE THE WAY THAT LEASES ARE
REFLECTED IN THE FINANCIAL
STATEMENTS. SO IN THE PAST,
CERTAIN TYPES OF LEASES MAY
HAVE BEEN EXTENSED, AND SHOWN
AS LEASE EXPENSE. DEPENDING ON
IF YOU'RE THE LESSEE, OR
LESSER, ALL OF THOSE LEASES ARE
GOING ONTO THAT BALANCE SHEET
AS SHOWING AS A CAPITAL ASSET
OR AS A LIABILITY, DEPENDING ON
WHAT SIDE YOU'RE ON. LESSEE, OR
LESSOR. SO MANAGEMENT HAS DONE
A LOT OF WORK TO TRY TO
IDENTIFY THE LEASES THAT FIT IN
THIS CATEGORY, AND YOU WILL SEE
CHANGES WHERE THERE'S GOING TO
A CATEGORY OF LEASES RIGHT
THERE WITH CAPITAL ASSETS FOR
THAT RIGHT TO USE ASSET, THAT
YOU MIGHT NOT NORMALLY HAVE
SEEN, AND YOU WOULD HAVE JUST
SEEN IN A NOTE DISCLOSURE, FOR
EXAMPLE. THERE WILL BE AN
IMPACT TO THIS, AND WE'LL COME
BACK TO YOU THIS SPRING AND
EXPLAIN IN DETAIL HOW THAT
IMPACTED YOUR FINANCIAL
STATEMENTS. THE OTHER THREE
PROBABLY WILL NOT HAVE ANY
IMPACT OR VERY LITTLE IMPACT.
THE GASBY 91 RELATES TO
CONDUIT DEBT. THE OMNIBUS HAD A
NUMBER OF POINTS IN IT. GOING
THROUGH IT, WE DON'T SEE
ANYTHING THAT WILL HAVE AN
IMPACT TO SEATTLE PUBLIC
UTILITIES. GASB NUMBER 7 HAS
MORE OF AN IMPACT ON THE CITY,
AND THERE MAY BE A DISCLOSURE
IN SBU'S FOOTPRINTS, BUT AT
THIS POINT, NO THE A MAJOR
IMPACT. THERE ARE SOME MORE
COMING UP IN FUTURE YEARS, THAT
WILL AGAIN, HAVE SOME IMPACT.
MOST LIKELY, THE SUBSCRIPTION
BASED I.T. ARRANGEMENTS, ANY
TYPE OF RIGHT TO USE OF I.T.
ARRANGEMENT WOULD NEED TO GO
AND ONTO YOUR BALANCE SHEET.
SO THAT'S THE BIG ONE COMING UP
IN 2023. THE OTHER ONES LIKELY
VERY LITTLE IMPACT IF ANY. THE
ABSENCES, YOU CERTAINLY DO HAVE
THAT, THAT IS YOUR ACCURAL FOR
YOUR VACATION FOR YOUR
EMPLOYEES. PROBABLY SLIGHT
UPDATES, AND SOME ADDITIONAL
DISCLOSURES. WE'LL HAVE TO LOOK
AT THAT. IT'S NOT AFFECTIVE
UNTIL 2024, SO WE HAVEN'T SPENT
A LOT OF TIME ON IT, BUT I
DON'T THINK IT WILL HAVE A
LARGE MATERIAL IMPACT ON THE
FINANCIAL STATEMENTS
THEMSELVES. AND WITH THAT, I
WANTED TO OPEN IT UP TOP
EVERYONE TO JUST DISCUSS
ANYTHING THAT YOU'VE JUST SEEN
IN OUR PRESENTATION. NICOLE
MENTIONED, OBVIOUSLY UTILITY
PLAN AND CONSTRUCTION PROCESS,
ARE A HUGE PART OF OUR ADULT
EFFORT. AND I DID JUST WANT TO
FIND OUT, THOUGH, IF THERE WAS
ANY OTHER AREAS THAT YOU FELT
YOU WOULD LIKE TO FIND OUT HOW
MUCH WE LOOK INTO THOSE, OR
AREAS THAT YOU BELIEVE ARE OF
HIGHER LEVEL RISK? AND ANYTHING
ELSE THAT YOU HAVE CONCERNS
ABOUT. SO I WOULD LIKE TO OPEN
THE FLOOR UP NOW FOR QUESTIONS
AND COMMENTS.
>> THANK YOU VERY MUCH. I
APPRECIATE YOUR MENTIONING THE
LARGE CAPITAL PROJECTS. THAT'S
OBVIOUSLY, TOP OF MIND FOR US.
I DO NOTE THAT THE $1.3 BILLION
BUDGET FOR SEATTLE PUBLIC
UTILITIES IS GOING UP FOR NEXT
YEAR. I THINK IT'S GOING UP TO
$1.4 BILLION. ANY OTHER
QUESTIONS OR COMMENTS FOR THE
INDEPENDENT ACCOUNTING FIRM,
THAT WILL BE DOING THEIR
INDEPENDENT AUDIT OF SPU? IS IT
CORRECT IF COUNSEL MEEKS WANTED
TO CONTACT YOU DIRECTLY, THEY
COULD DO THAT AS WELL?
>> YES. IN FACT, I DO HAVE A
CONTACT PAGE HERE WITH OUR
WHOLE ENTIRE LEADERSHIP TEAM
WITH OUR EMAIL ADDRESSES AND
OUR PHONE NUMBERS. SO FEEL FREE
TO CONTACT US AT ANYTIME.
>> GREAT. AND IN TERMS OF PAST
AUDITS THE LAST COUPLE OF
YEARS, THE LAST TWO OR THREE
YEARS, WERE THERE ANY MATERIAL
ADVERSE FINDINGS?
>> NO. WE HAVE ISSUED LETTERS
OF RECOMMENDATIONS IN THE PAST,
BUT IN THE PAST FEW YEARS, NO,
THERE HAVE NOT BEEN ANY
MATERIAL WEAKNESSES OR
SUFFICIENT DEFICIENCIES NOTED
AS A RESULT OF OUR ADULT.
>> THANK AUDIT. COUNCILMEMBERS
ANY QUESTIONS? OKAY, THIS IS
PRETTY STANDARD. I KNOW A
SIMILAR THING IS HAPPENING WITH
SEATTLE CITY LIGHT. AND IT
HAPPENS EVERY YEAR. I JUST WANT
TO KEEP THEM COMING BACK TO OUR
COMMITTEE FOR THE OPENING OF
THE AUDIT, AND OF COURSE WE'LL
GET THE RESULTS IN THE SPRING.
THANK YOU VERY MUCH FOR YOUR
TIME TODAY. WE APPRECIATE IT.
>> THANK YOU.
>> COLLEAGUES THAT WAS OUR
SECOND AND LAST ITEM ON OUR
AGENDA. SO THE TIME IS NOW
10:09 A.M. AND THIS CONCLUDES
THE DECEMBER 12, 2022 MEETING
OF THE TRANSPORTATION AND
SEATTLE PUBLIC UTILITIES
COMMITTEE. AS I NOTED EARLIER,
WE ARE CANCELING THE JANUARY
3rd COMMITTEE MEETING. SO OUR
NEXT COMMITTEE MEETING WILL BE
JANUARY 17, 2023. THANK YOU,
EVERYBODY. WE ARE ADJOURNED.
BYE.