City, County, and Local Affairs-House and Senate

We've got a agenda today that's a. We're gonna take a look at the waste water and the water industry in the state of Arkansas is all you know reliable access to safe drinking water. And efficient function disposal boys water divided to public health and economic growth sustainability of my statement if you do not know what my grandfather started drilling wells when he was twenty eight Oklahoma any real with the pounder you didn't have a rotary Drake but he drilled thousands of whales in western Arkansas all over the country over there and I'll never forget him telling me he said one of these days you're that water will be more valuable than gold and when he first started drilling it might know where we set that bit down he hit water. And if the and after sixty years of drilling wells he said it was fifty percent he had to move it and they were much deeper so you know a lot of times we take things for granted. A especially now in our state when you turn on the tap in the water comes out that's not always the case in some places so I want to I just want to thank each one of you for being here and that is all you know a reliable access to safe drinking water and water efficient function dispose of waste water is vital to the public health economic growth sustainability of our state two thousand twenty one Congress passed the American rescue plan R. for. Which was intended to help assist the country in individual states and municipalities with needs related to the COVID nineteen pandemic. There were four buckets. More for specifically identified as areas for the op apple calendar of Arkansas should be spent one of those buckets with water sewer. Today Arkansas I spent A. P. R. eight dollars on broadband infrastructure with as yet to spend any money on water or sewage products projects in fact spot are passing over a year ago the opera committees being set up in two thousand twenty one is still not have any guidance from the administration on how much of the remaining are from funds will be spent on water and sewer and what the process of these utilities to to obtain the funds will be. Of these one time are for federal dollars to help with critical infrastructure projects will have generational benefit. I have already begun in earnest throughout the country for example just last week Mississippi announced that they were spending one billion on water and sewer project Mr cigna Senate governor call the focus on that infrastructure transformational and generation. I'm proud that Arkansas has invested in other infrastructure like broadband whether our for dollars this is important however. Ladies gentlemen when you think about it. Sitting there watching a movie. over broadband. What deliverance and you flush your commode and work which one of those most important to you so we we need to get our priorities straight because we have a lot of water needs in the state some has been going on for quite some time and we need to deal with those of at. This is this is a time is of the essence because the federal funds must be spent by the project by two thousand twenty six this means engineering work must be done projects must go to bed local funds to assist in the projects need to be secured including potential bond projects constructions Sturch plate and all of this has to be done on the back drop drop of worker shortages inflation. Many the longer we wait the fewer projects can be completed in the more expensive those projects will be. I'll have that if you look around the state today or sometime drought this year is amplified this issue we have utilities are asking residents to conserve water have some in my own district I'm sure many other colleges here have the same. We have utilities are asking residents to conserve water because of dwindling water tables the industry was right early on by the state to try to get their hands around what the potential each word not surprising that were huge multi billions of dollars to improvements and expansions are needed to shore up his vital infrastructure. We're very fortunate today have good line up of experts from the industry who are here to help educate us on the industry needs we're gonna hear from the leadership of the water wastewater managers rural water association from engineering firms and assist these utilities as well as public financing experts who can help educate us on the economics in current public financing market. We'll also hear from local officials about some of the water sewage issues they're experiencing in state. So again I want to thank all of you for being here today is may sell the expert here that is going to testify and we're gonna get on with this because try to get out here by noon. And the first order of business we need to have a motion to approve the minutes of the August eighteenth city county local maybe. motion the second second motion second all those in favor. All right. The up investing in water and wastewater infrastructure overview of statewide interest in industry needs Mister Michael Clayton. With the Arkansas water wash water managers association. And I don't know if the German or going to come up together Mr heath ward okay. Dennis. A state bar executive director Arkansas rural water association. The gentleman would come up and identify yourself for the records. A person. There we go is kind of counterintuitive with the red he's bored I am representing the Arkansas water wastewater manners sociais Asian as the as a past president and the legislative chair I'm a plea by Springdale water utilities is the executive director. I'm Michael Clayton and I'm representing Arkansas water wastewater managers association and the president of the organization for this year and I'm also the director North Little Rock wastewater. Thank you. I'm Mr Burke on the executive director of Arkansas water association we represent cities towns water so she ations public water authorities public facilities board's public any public water or wastewater unity of our main focus is to the cities and towns roller is ten thousand population under but we do technical assistance in training so we have boots on the ground every day working with utilities and we see the need firsthand thank you all right let me let me interrupt just a second for per se I don't apologize. I forgot about my culture we're a representative Lanny Fite I'm good you have any comments. Our. German you're recognized proceed with your presentation. Okay we we just dont have a conference about two weeks ago. For the water and wastewater manager self election and and one of the driving teams. West. The utilities is trying to figure out how to get access to the opera funds for water and wastewater improvements. We're we're we're very anxious to look for guidance we're trying to figure out how we could get access to the funds. And we've been anxiously waiting with guidance to come out with the state. And that's one the the biggest topics we had with our organization the last couple weeks the other thing I want to bring up just to just an example of what's going on I'm really concerned about how long's it gonna take to expand these funds to rebound after. We hear North Little Rock wastewater we've got a project for example that we put out for bids we actually went into contract for engineering firms back in February of two thousand nineteen amps of design projects here in about three months will be going out for bids for the project so long before years later we're finally to the stage after we get all our permits and regulatory approvals easement there were actually able to go out for bids for the project once we go out for bid for this particular project that we have is about a forty to fifty week lead time just for the quick meant to come in so before we can each century per shovel in the ground we'll have to wait almost another year before we can essentially begin the project and we think it's about eighteen month project afterwards. I don't believe the example I'm given here is is an extreme I believe it's or it's and it's not unusual with large projects here it just takes so much time for the design to begin to the concept would get our bodies approvals the regulatory approvals permits you go out for bids the right now with the the pressure for inflation it construction site is is is enormous. And We need some help we like to move forward with the some guidance on how we can apply for these funds here I would like to hand it off to up to release lady chair for the Arkansas water wastewater manager association is he for. Thank you Mr president I'd like to thank the chairman for having us today this is a big deal for industry a lot of people are anxiously waiting hopefully some fruits of the labor being here today I'd also like to thank my state representative Megan Godfrey for being here today to support to support us in this endeavor. a W. W. Mazen organization the statewide represents organizations from small systems to large systems and is made up of senior managers of those systems and as mark said we had a conference couple weeks ago were everybody from folks from Little Rock Springdale from Systems tri county small systems like a Heber Springs we get together and the purpose of the organization is number one is professional development. It is sharing ideas and the third one is is you know weighing in on legislation and and things that impact our industry our communities we work closely with Mr stern Bergen rural water as well. In the municipally us no secret the recent survey showed it depends on who you talk to between three and five billion dollars of infrastructure needs in Arkansas and this was done approximately last year the survey went out maybe a little longer end of we know that some things on there might've been wishlist buttons other utilities set priorities. In didn't list everything they needed because we know in reality we're not going to get everything we need none of there's never enough money you know even if you print it there's never enough money but you got to set priorities and so it in reality. We we know we're not going to get everything we want but there are some things we need. In systems large and small in in all in between have a common day challenge in much of it has to do with some population growth even in places a rule areas ten years ago even in Northwest Arkansas there subdivisions there in this what are the only part of the state experience in this Arkansas is a good place to come to we're seeing flights from other states coming to our communities both urban and rural much of this has to do with also with aged systems and then we also have the mills I call the millstone of the federal government regulation around our neck every time someone finds a way to measure something we figure out how to regulate something at one part per billion instead of one part per million and that's something everybody has to deal with in our our community and there's an expense involved with that. First when the arpa dollars come out the buzz for many managers was are going to be a one time perhaps once in a lifetime of infusion of dollars into our state now is a about a year ago and then the bark park bipartisan infrastructure bill also passed I called the B. I. B. some of that buzz was over years ago a year ago before the infrastructure bill even passed shortly after the needs survey sent out by a RC in the spring of twenty twenty one so there was a lot of excitement agenda up in our industry about this the focus suddenly became okay what's a good project where I need to do what and go who I talked to. Well. Good project was basically said if you get local dollars in you can pony up local dollars match of its market hours and you got a plan that's really shovel ready that's good project which a lot of people scramble lot of people Senate plans up to the state you'll hear from these utilities I'm not gonna go all in into that. But you'll hear from many systems day that hurried to the plate was truly shovel ready projects. hoping the steering committee would steer some are put hours towards water and waste water that simply is not happening and we were told them there was a separate committee that would be set up for the B. I. B. moneys so far we see no committee communication action or considered for consideration on either front. many of these plans were submitted in the fall of twenty twenty one. And we haven't seen one dollar from the state in these endeavors even more projects and said we can come up with thirty percent of the money locally or fifty percent of the money locally none of that has happened. And the authorization dispose of the taxpayers of of forked over I have not found their way into our industry water wastewater in fact was one of the clearly articulated areas of this money where should be spent. Right now the clock's ticking you'll hear many systems have done alternate short term fixes that are sometimes expensive and they're doing the best they can lead times contract prices even getting engineers and contractors as a challenge right now ductile iron pipe this forty weeks out you'll hear more about that later. We do see support we hear support from our secretaries I think the support from both secretary ward secretary Kiel have been wonderful but I don't think that's where the I don't think that's where we're stuck in the mud that I think if it was up to them they probably move forward with something. we hear there's a committee we don't see action no real plan and rumors also that all the money's going to go to broadband we've heard that rumor repeatedly and is Senator Stubblefield said it's great to set the woods and watch a high speed internet when you're drinking bottled water and you know you don't your commode doesn't flush and and that's a reality. I do think there needs to be an acknowledgement to the state didn't get all our money one time they got half and twenty one of the happened twenty two. And just to the state in the last month so we we need to focus on the half just got here I think I think there was a lot of money that was spent places probably were needed to be but yet we still have not got consideration is an industry. Last Thursday Mississippi accounts one billion dollars of other one point six one point eight billion that's going to go to water and wastewater infrastructure that's amazing. You know there's no joke about Arkansas always a being able to say well at least we're not last Mississippi's right behind us I think today we got a look around say you know what Mississippi's ahead of us they're truly ahead of us as of now Arkansas doesn't have a plan what we want is a commitment that there will be a plan a clear plan a plan that our industry can follow. I thank you for your time hope we can see some dollars flowing path for between the executive and the legislative branch to help make that happen. One thought I'll leave you with civilization or any civilization does not last very long do very well without clean water and wastewater. I'll be happy to answer any questions or I'll be happy to do that after Mr Sternberg speaks thank you. Thank you Mr chair one quick question how much money are we talking about. In terms of what we need well no you said that there were of projects that were already ready to go yes I mean. I think you're statement said early on there's never enough money but right what amount of money you're talking about for the current well check this now that you're if you're what figure are we talking that that's what I want to the projects that have been submitted some of them by Jacksonville answer seeing you'll hear from them later I don't know the exact dollar amounts and then but I know spring bill requested thirty five million knowing we wouldn't get the whole thirty five million but there is just an example but we were going to match that with local money we did that project. Forty five million was estimate it's committed fifty one million in the next lowest bid was seventy nine million so you can kind of see the gap there there is a gap so I I really can't cite their projects and and they'll be able to later ma'am but in my example it's you know even if we got fourteen or fifteen million right now to be helpful in the rescue be matched locally through the water and sewer utility and the city of Springdale. So it's it's it's several million dollars. Follow up Mr. But in your conference that you had two or three weeks ago was there a number that was floated around we're just trying to get an idea as to what we're talking about are we talking about. A million dollars a hundred million dollars fifty million dollars I mean what are you asking for from the state so I was I just assume that you'll probably talk about that. What we're really asking for instead of a specific dollar amount is give us a process whereby we can submit these ideas T. in the projects that are worthy can get some approval it's it's really going to be up to the legislature and the executive branch to determine what how much is going to be in that pot of money and so how they choose to deal it out I've been told it might be ten million dollars per project it's it's such a broad thing I really can't speak for every system in the state but I do know that A. R. C. estimated the need to reporters twenty four five billion dollars total that's just not realistic but I think what we're trying to do here today is get to a point where we get some number to work with knowing it's not gonna meet everybody's needs but right now we've we've got nothing to work with there's no information so yeah what what's gonna be determined is is is is you know how many projects are there how many you know what can we give to each community well almost certainly no spring does not gonna get thirty five million dollars. But we got five to ten million or fifteen million dollars that be great but I I cannot answer that specific question in in with authority ma'am. Yes ma'am. Thank you Mr chairman. German or give you a good example of a situation which I'm sure it'll be that way statewide. But I asked one town that had not had water runs putting in. Since nineteen forty five. That's a long time and you know that that's Corning danger the Walker no one not one of the bill one of which is this. You have a small town that actually if they took their millage all the way to the top. And you had of the sales tax which could be maybe one half or two cents per that's just for one town. And that's not enough money to cover even the third so how can we get the same goal and. Well I suppose the these other German can speak to it but I think what we need we need is we need somebody in our state government to say Hey we're going to commit this many dollars to water wastewater projects that way that community that community can come up with a plan they can't cover all the costs maybe they can come cover some other cost locally they can have an engineer submit those plans to to a committee and get it going through an approval process so they can afford to go ahead and start that project and and that's what we really need today and that's really what we're asking for is what's the path forward there's money coming to the state there's really not there's enthusiasm but there's really not a plan and and really I think to get a jump start I think the legislature The folks in this room and the executive branch need come together so we plan we need to move forward we need to get this money released in and working in one of the areas it was intended to. Yes Sir I do believe so Sir it would have a whole lot better chance of getting to hear if you can put a dollar dollar figure owners are. I would would agree and if you and if you look at it you know we get forty five billion dollars you know we have to do another survey that would go something like what do you really need you now and so that survey was done by an R. C. and those are the needs that were stated by the industry year ago. And those are the only numbers I have and I can't really ask for each community because I don't know the needs of each stand water I don't know the needs of Kim's the water I don't know that but I do know that in my industry there is a general concern is right now there is a zero dollars that are out there. I think if you come up with thirty forty fifty million dollars. That'd be a nice start. Something. Thank you Mr chair from someone who sits on the steering committee I just wanna let you know that we have never been presented any request in the steering committee for any water project so it's not that the steering committee has. Not said we want to do it it's because we have never been presented anything and I'm speaking from the legislators that sat on this committee on the on the steering committee it's never made it to us to make a decision yes or no do you know why that is ma'am I don't because my plans were carried in boxes multiple boxes hanging carried to the capital for that purpose with a letter signed by me and the chairman of my commission. With letters from judges state representatives and senators supporting our plan and requesting that money from the steering committee why never made it to your desk I don't know. Follow up Mr. Who did you present that to. That. Those plans multiple plans probably. Somewhere between six to ten sets of plans were hand delivered to the Secretary of agriculture's office okay and have you had communications with the Secretary about these. I have several times and it's you know the committee just is not convene or you know nothing's happening right now yeah in do you know who convenes the meetings for the steering committee whose actually says we're having one man I would assume it would be the chairman of the committee or the governor's office is executive branch yes Sir yes I just wanna make sure because and that you know there is some frustration I will say when I can't speak for everybody on the steering committee there is some frustration that. We don't have meetings as often as we thought that we would I'll just put it that way and I'll go on the record saying that I'm one and I'm sure I'm not the only one it shares that but you know I just wanna make sure you understand the steering committee has not. Seen or heard any proposals now my belief is that the department of agriculture has those and have them ready to be presented it is just not been scheduled by the executive branch is my understanding is that what you understand yes ma'am that is why I understand that's probably why I'm sitting here today okay and you'll hear from other utilities today that have the exact same situation as me large and small and in between okay if you don't mind as someone it sets on that steering committee would you see and to the chair so they can give it out to us the list of people who have submitted those yes that we are just waiting for someone to schedule a meeting for us yes ma'am I can acquire that and to we'll get you a list that will be a consent or percent complete but I'll I'll get everybody that I know of and and put out a call for anybody else so I may have missed okay I'll be happy to I appreciate that yes ma'am. Then from. Currently. I mean are they sitting in someone's office or. I'm not really sure if they're sitting in someone's office what I would like they are sitting in someone's office waiting for a committee meeting to a steering committee meeting to be called to discuss them that is where we're at so I know that. From conversations that we're having but what I'd like to know is the list of those organizations and water projects that are in those boxes so we can see who they are. Yes thank you. So you Senator call will. Thank you Mr chairman over your left. The I want to the follow up with representative Cavenaugh on the steering committee I should only committee of there is a high level of frustration from the Legislative the point of view in the fact that nothing comes to the steering committee let's not pre approved by the governor's office all we do representative already comes to the committees because the law requires you to. And the I went to the of your of Legislative Research and asked if there were projects out there that the steering committee could ask for the in in the the. Session legislative session if we have a bill hung up in Committee of the chamber can withdrawal that bill from committee and bring to the shame for to be discussed and voted on the steering committee has no right to do that so nothing comes to the steering committee that the governor does not want to come to the steering committee. And the and when we had our organizational meeting on the steering committee are brought up water project the in Biscoe of Arkansas the related to the the. Rest area on I. forty point river I've been here for ten years and that rest area has been closed for eight of the ten years because waters your problems and I ask for that to start or for that to come to our steering committee of the day we organize our committee and yet today not one water project has come to our steering committee now we can't make them make them being the executive branch bring a project to the steering committee and the and the governor has the string Committee stacked with nine eleven sectors and six legislators but once it leaves the string Committee ago compared committee and then goes to the Legislative Council and we can stop any of the other projects there that we want to stop so the we can take to broadband projects have been going all we really need to finish about a hundred million dollars brought the book to so many of the broadband project that we have going on in here right now this will set up the tower they get paid a hundred other money on the front end before any work is done and then there's no accountability on the back and I've had so many small communities come out and speak about the problems that they have spent all their money on on Broadway in the company's been paid and then then the broadband system doesn't work but I'm in agreement with the other legislators that one we won't broadband if we don't have drinking water. You know with this the basic needs of life is to have drinking water and and and I would recommend to our legislators here that if if we can't get these water projects brought to the steering committee to just shut down the spending and and and move the money over to the next to the legislative session the next administration is coming in in January where we can get some of these things done but it it's a crying shame I've got a the mayor here from bisco today schoolspeak it's absolute crime chain that we've been out there for two and a half years trying to get water the over two of this going and get their of the systems fix and all the engineering done we we've gotten with the his engineer and and the are not changed here and everything ready to go to talk about a shovel ready job it was shall ready from the get go. And yet we can't even discuss it in the steering committee because the executive branch is not Senate there. Clarification of how the process is work and and if they dump it back to the string Committee we're nothing but rubber stamp and we and we really don't get to do that I mean he's a stacked it with nine sectors of of his departments and six legislators and it will rarely do we meet. In the last two three times we but it's got on the merchant bases all bent on June I can't really tell you the representative kept on the when the last time we met in public it's been over a year. Just a highlight we're we or what we did and and things that need to be done in your exact right we need to move forward answer your question on on how much money's representative Cavenaugh ask the we could take all the eight hundred million dollars that we got this year on on the Arkema it's been a water sewer and still come up short. Thank you Mr you're welcome up sent Caldwell is anyone here from the executive branch. Every question someone from the governor's office beer. Secretary ward okay we will bring it up later. representative Godfrey of questions. Yes thank you Mr thank you also I imagine he that's great to see you I'm glad to get an update on the project and disappointed it hasn't moved forward I know that we've been talking about it I think for well over a year and it looks like it's that a broader problem I have a couple questions because I know some of my colleagues asked about a dollar amount and I'm wondering and do you know Senate Senator Stubblefield mentioned and and you all did as well that are both funds and are allowed to be used on projects like this on water and wastewater waste there any guidance with those are the funds about what percentage should be used on water wastewater what you know that particular bucket should look like in in relation to the other projects that states may be using or was it just kind of a a broad permission without a particular percentage might believe it was very broad in that gave the states flexibility between the legislative and executive branches on on you know what each state's needs for I think that's why you saw Mississippi good portion version of water sure you know in and like the other representative said there might be eight hundred million dollars out there we know we will get all eight hundred million dollars of that that you know a hundred million or two hundred twenty five percent of that would be nice. But so it was very broad yes ma'am and so it looks like the the setting the calendar amount or or prioritizing these types of projects are up to the state and and I think some of my colleagues have mentioned that perhaps is the problem that these types of projects haven't been prioritized prioritized and Mr my second question actually if it's in order is to my colleagues who were on the steering committee under maybe represent Cavenaugh stepped out or or and. Senator Caldwell if if you all could speak to this because it sounds like to another issue in addition to funding being being designated from our funds to these projects and other issue as having just the system or the the protocol with in the steering committee to address particular wastewater projects so I'm wondering if y'all can talk to if there is another kind of process within the process for particular types of projects you had mentioned broadband and so I'm just wondering if there's a like a model already existing within the process of the steering committee to hear particular project under like a femur aside area like broadband light water waste water so that the steering committee or the executive branch in partnership with the steering committee could create some kind of process that this gentleman asking for said so that they can have a way to not only have the funds but also have the protocol in place for hearing the types of projects that we'll hear about today so I would love any insight from my colleagues here on the steering committee if if that's something that already exists with other areas in could be replicated in this instance. Our I can. Representative Cavenaugh my understanding is there's no process as a legislator that we can change the process that's all done in the executive branch so we don't have any way to change process. Thank you. Senator Johnson you're recognized thank you Mr chairman has led to see you back Mister chairman of. And I'm some throws question and I'm not even sure if and first of all thank you for for this information but We have a project pending gosh it seems like for two years. In my district in west Pulaski County we are the largest area in the county that doesn't have water service we we had a couple pockets and in the southern part of the county off of highway. Three sixty five whatever but it's it's this is where the baby were over a thousand households without water including that area R. three children's camps plus the Arkansas four H. center and I spoke to the staff at four eight Senator yesterday and said that because of the poor quality of their well out there in the corrosion that's happened to their system you're looking at somewhere between a half a million and a million dollars worth of of repairs that they'll have to do to their their water system that serves that if they don't get and may have to do some of this anyway but certainly if they don't to get some kind of municipal water US Central Arkansas Water has this project planned it's been ready to go at the show already word I mean that's we can over use that sometime but this one truly is and we and then to augment this and I hope secretary ward knows this because I've met with you about it We even have a broadband part of it because we if you're out there digging trenches and laying water mains you can also put conduit in to run fiber and actually got a not a solid proposal but a ballpark estimate from one of the broadband companies that said they could put lay fiber in at basically to pay into the project to do it and it was something over four dollars a foot they would give to the project to be able to get that in there so I don't I'm I'm I share your frustration from a totally different thing I know they're wastewater needs that are there as well but to you know we talk about all the things government spends money on and what could be more basic yeah you can go view our sin maybe a few days about food you we can it's probably should go a few more days without broadband although believe me I think it's important and we needed I'm certainly not going to say I'm against broadband we don't have that out there either but but water is just become critical and I I'm shocked that we're sitting here when when I hear what Senator Caldwell and representative Cavenaugh said about basically nothing's been done for a year and believe you're telling me are telling the committee was toward that that to Mississippi is just kinda. They've done their they've taken their money they funded their projects I guess state. They they're doing the process as outlined from from what the feds tellingly Act to do because it correct me if I'm Mr missing something this is we just have a one bottleneck that seems to be slowing all this down and and you know several members have mentioned what what's the bottom line was the cost what's the need I think we can all stipulate to the fact that regardless of what number you comes up you come up with statewide even this. Quite a large amount of money while it will certainly help a whole lot it won't solve it won't fix everything it's out there we we know that and this is a process it's not a maybe it's a journey not a destination but I. It's or something that. We can do to. Get this thing going in and out of Sir Caldwell mentions baby in the in the session in January I I'm I'm I'm not I'm aiming this at the witnesses Mister chairman but I'm really just seeking an answer from you or from anyone else that can help us come up with a real answer to that and I'll I'll just leave that hanging and let others jump in on thank you Mr. Thank you senator John. Our. Representative Beatty. Thank you Mr chairman just a question I came in a little late the monies that we're talking about I know that there was a a water and other infrastructure working group that was formed by the governor they produced a quite extensive report back in twenty twenty one in that report I think it said that there was approximately five point seven five billion dollars worth of needs and the water infrastructure within the state that that report came out the executive summary that said there was they recommended five hundred fifty one a million dollars for the waste water side twenty two hundred million I think for irrigation projects and maybe fifty million for state agency waste water and water needs it is that all part of this process those recommendations and and that dealt with just our of funds it looked like there were several projects are included in that report. That was the initial survey that a and R. C. did and you know that was the that was the total amount if you took the wishlist stuff of might be a little bit still billions of dollars in in yes that was supposed to be part of that process and what happened after this report came out the questions from our industry war okay what's the process how do we get there so we were told you need to have plans that are you know little piece of it needs to be local you know if you can get local funding city council whatever. And then put your project request in with things that are truly shall already is Senator Johnson said these are how to percent plans for example we submitted your from other communities same thing so we've submitted these plants we put letters in for request and really haven't heard much hurt a lot of voices of support don't get me wrong I mean there's people out there that say yeah we need to we need to do this but the real question is how do we go about doing it and and how do we go about getting our foot in the door to request some of these funds so yeah I mean you look at you look at that report you know that's Meeks almost nine hundred million dollars more right there will we get all of it can we use all of it here's the big question even if you gave me nine hundred million dollars day. Can I even get the project done in time their communities out there because the clock is ticking and maybe smaller committee can't even for the engineering. And so you know that's why I really can't put a number on it because I don't know we're we're people or at in the process they can say yeah we think it's going to be this but some communities have plans in the ready to go others can't even afford to make plans they need to. But the clock is ticking and your has passed and more time is passing in twenty twenty six is going to be here and as you will hear from engineers and you will hear from all of communities that that is their big concern to they just want a solid process of how we go about getting some of this money to to get started we're ready we're ready to go. Thank you. Anymore anymore questions. You want anyone else your. You're recognized. Can you hear thank you thank you Mr chairman the. And the committee as a whole the water industry again I'm dentist armor with Arkansas real water association we work with all water and wastewater utility across state so as I said that in other meetings we see it first hand so working with the small utilities to some of the medium size utilities and the larger utilities or more self sufficient to have their own engineers are there they have an engineer on on on stand by if they need him there's lots engineering firms out there but. This is time it is of the essence. The small systems in Arkansas there's over six hundred and fifty community water systems in the state of Arkansas community water only water then you have the waste water side as well. These funds are desperately need. These are grant monies that could be partnered with loan monies to do a bigger project to do a complete project to fix entities the infrastructure that is aging her nineteen sixties and forties the line's been out there they're across the state. Mississippi is ahead of us they had a plan so unfortunate we're all we're running into this situation in Arkansas for whatever reason and I don't want to point fingers I think we've heard everything we need here which brought up some questions it to I want to further from my speech because now I've got invigorated listen some of the questions about money what's needed I served on the water providers task force this legislative body approved back in twenty seventeen we supply to report to the governor in twenty nineteen let me read Page seven you can go to the the water providers task force Mr believe Arkansas water managers association a WA different legislators C. A. W. entities from across the state representative that water industry on this legislative providers task force Page seven of that says when evaluating Arkansas's public then this let me back up this come from the American society of civil engineers. And they do it on all states across the nation and when evaluating Arkansas public water supply on the basis of capacity condition funding future needs operation and maintenance public safety resilience and innovation the twenty seventeen report by the American society of civil engineers Rights Arkansas at a D. plus Arkansas public water supply accounts for approximately four hundred and forty million gallons per day to serve at the time two point nine million people. Both in the socialization of a. American society of civil engineers twenty seventeen in the office of water EPA March twenty eighteen estimates seven point four billion in drinking water infrastructure needs over the next twenty years that was in twenty seventeen remember that we're already five years taking away from that a comparison of the nineteen ninety five three point seven billion in drinking water infrastructure needs over the next twenty years. A. I lost my place just that but the a comparison ninety five three point seven billion needs with the most recent of seven point four billion assessment needs subject to state is losing the battle and in the whole twice as deep as it was twenty years ago Arkansas water transmission distribution consist of a distribution system can which consist mostly of buried pipes represent seventy two percent of the capital needs of the state's ranking water facilities other to me in two thousand six hundred fifteen miles water transmission and distribution lines which will require replacement or rehabilitation within the next twenty years fourteen percent fourteen percent of these projects Act critical stage especially in areas of Arkansas rule area and may didn't need may need attention. This report this is just one page of that report that water providers task force that was delivered to the governor back in twenty nineteen. Everybody can get access to it. Senator Caldwell he was one of the members to serve on the committee representative Fred Love was on the committee there was different different legislators on the committee the state agencies were all involved so I bring this back when we talk about what are the needs there was a survey done by the secretary of agriculture I think you come in over five hundred million he's here today he can actually tell you the numbers I'm sure but there is a need that's water and wastewater now all of them as he says mention probably are shovel ready but there's projects out there shovel ready right now I'm gonna give you two examples in this state right now that are in need of funding. Conway County regional water which the managers here today. But. They serve water to the cities in Collin county regional water distribution district served the whole county seventy five counties in the state of Arkansas they're serving one hope county's plan all the water that county serves water the city's Marlton Menifee palm real Oppelo impaired. As we know the lack of rainfall and extreme heat have reached have we we have we been experience in the last two weeks has reached a water treatment plant passed in last two weeks their plant has maxed out open twenty four hours a day they have met with the county officials in all the cities that Acer water to and discuss the need to conserve water as you heard several others mention you know I thank chairman you mention to some of the cities each year round and systems are asking people to share water pressure head net maximum maximum limit the they draw their water out of lake brewer. The city of Conway Arkansas draws our water. They call a county regional has a twenty inch line raw water line from the lake to their plant. They've maxed out so what they're proposing is to put in a parallel line a twenty four inch line that twenty four inch line just increasing that those four inches will improve the capacity by forty four percent. I want to twenty inch line will do. And they're gonna put in additional filters so I can filter the water that's immediate need now folks that's immediate need. you know that the draft a break but it's not going to go away the needs are there we have we have another system regional water system Kenji regional water service almost twelve thousand population in four counties Clark garden hot springs in gumtree cancerous wall also wholesales to three other public water utilities Hot Spring County water socialization magnet better feel water association alkaline water who collect collectively serve over sixty five hundred people. They need funding to allow gives your regional water to run another parallel line between two tanks. Because the original line was put in was a teenage PVC pipe and it's in rocky terrain in that area as you all know if you travel to know those parts of the counties that PVC pipe is subject more subject to breaking they want to run a double line twelve inch through there make it parallel to make sure they don't have issues they've had many breaks over the years this is doing planning ahead to make sure your customers and your growth is continually being able to provide be providers good clean safe water water is essential live broadband is. I understand the need for technology. But we gotta come back to common sense sometimes water and wastewater services are the priority for every community without that you don't have a community when you stop and think about. And with that I'd be glad to answer any questions but there's a great need from small to large systems on funding grant funding will paired with long moneys are local monies can go along way to improving the communities I'd be glad to answer any questions or representative Cavenaugh yeah of course yes it's more of a quest is that as the secretary ward is out there if we can have him come to answer some of the questions that we keep asking who Secretary ward secretary ward if you want to come to the front. West you go in there for yourself for the record. You're recognized. Thank you Sir west ward from Arkansas part of our culture also have with me Chris call closure Chriss are a natural resources director for a for their part of agriculture is he's been that position for about a year now and has been a pretty pretty frequently involved in this topic as well but will be happy to have been given a review like or or can just respond to questions if that's more appropriate. Thank you Mr chair. Just if you can give us a quick overview what is happened because I know we talk about a report that's been given to the executive branch and if you could just give us a quick overview of where we're at in that process so we kinda know where everything is sitting. Yes ma'am so I would back up and and I I do want to say I appreciate the gentleman that that spoke up I think they and I appreciate the the questions from the legislators I think your hit on a very important topic that's a a big need in Arkansas I'm and myself and Chris both have been getting a lot of questions on on water itself whether that's about the American rescue plan or the infrastructure law or just regular program funding other certainly a large amount of needs across the across the state of Arkansas so so to back up two more specifically to the American rescue plan and the steering committee that was created so you go back to last year when the state got its first half of that funding source but in the end of two to try to set up the first half the governor created you're from within the steering committee created three working groups to really dig into some of those more specific items that we knew would be eligible for American rescue plan funding one of those was water water wastewater and other infrastructure projects and and he asked us from a department of culture to the chair that we had several of the other departments that participated governor's office I energy environment part of corrections military public safety that participated in that working group which would have been he was end of June when the governor created that working group I've been asked this to you a report back to him I believe it was August of last year I can get thank you to the specific dates of when those things happen but so what what we did from the department of agriculture standpoint last summer with your was we we certainly started meeting with with the group that was involved in started now try to put together a report that we can present to the governor on on the needs that existed so one one thing we did is we we put out a survey across the state you're just trying to get a good grasp what the needs were. Sure that is as broad as we could with water wastewater systems municipally exhortation counties to to get us as broader input as we possibly could that resulted in over fourteen hundred responses in over five billion dollars worth of worth of need across the state and that was a pretty short turnaround for that response to so we we would expect I know there's probably some some differences of opinions on what those numbers may be but from from what we saw or somewhere around five billion probably even a little bit more of needs across the state wants and needs maybe a little bit different but certainly projects that need funding at least a five billion dollar mark across the state of Arkansas and and literally across the entire state we we've got to we took those submissions put it on a map and it's it's the entire stated in that region specific it's the entire state of Arkansas that's that's struggling with water wastewater needs so we so we put that to put the report together and presented that last August and and what my understanding if you if you look at just what happened last year your one I'm I'm I know that the governor understands and appreciates the need that's out there I know that he is is is aware of the challenges that exist and and I think that what happened was this time last year was was optimism that we would be able to do something from that report and get some some funding I've been covered happens and so we we saw maybe a little bit of shift on just trying to be you're trying to be responsive to the to the covered by our ascent of the wrist funding that was used for expansion of your hospital space and different things along those lines what the basic kind of put the water wastewater funding on hold and so that's that's my perception recollection of of of why that got delayed fast forward to this year you know the state. State has received that second trial so the money that money is there we we've had conversations with the with the governor's office on your you know you're somebody that's available left here's our plan of how we would approach that I think those numbers are still being talked about of of what that total number would be but again I I would just stress you know the governors you're certainly sees the importance together certainly wants to do something for water wastewater irrigation that's you know some people say well why are you Asian but you you start looking at groundwater levels which you know if there was to get to a certain point though certainly impact municipal water use or I know that the governor wants to do something I'm you know I'm I'm optimistic that that will be sometime soon I think we've got a pretty solid plan of how to how to approach that but but it's been mentioned before anything that we do if there is only your eight hundred or so million dollars left and you got a five billion dollar problem it's certainly not going to be enough and when you when you know we see that type tied to that there are I will just say I won't go into you're much detail on it but that's where a little bit of the infrastructure law will be helpful and that says something we've been digging into as well that was when that infrastructure law was passed for water wastewater was supposed to be five hundred twenty eight million for over five years that numbers a little bit misleading you know we we know about fifty eight percent of that number this will be for emerging contaminants and lead service lines Sir what's actually going for water wastewater will be you know about forty percent of that overall number so it's significantly less than than than what maybe the White House said had a expressed that it would be priest of of the of the funding no doubt certainly you will help to address some needs but and and even on top of that there's a little more criteria of what what that funding can go towards their. There's there's help coming I know people are tired of tired of hearing that and and and we get several phone calls every day from from folks across the states and what's what's the plan where are we when we get in this and and certainly from our perspective to we we feel for them and would love to be able to help in any way that we can. That's that's just a quick overview overview but happy to answer any other questions if there are any. Well the question are have after that explanation and I appreciate you giving us and up to date where we've been at or actually history of what's happened. Since it's been a year since you presented it to the governor what the needs are I mean lately is about a year so. In the current speak with the governor do we know what his plans are to call a steering committee meeting to look at this because we're talking about covid spike and that did it but we can't funding broadband during all this time we just never funded waste water or any water projects but we can't funding broadband. Do you have any idea when there might be a steering committee. I don't have any specifics I would defer to the governor's office or or Department finance administration and that and I don't mean that to sound like I'm trying to throw them under the bus but I I think they they have been working on the numbers trying to get a good plan together I suspect that that will be very soon this is one aspect I just don't have a specific date and one follow up question on these working groups that you talked about that that they had been developed whether any legislators on these working groups there there was not okay thank you. Thank representative Cavenaugh you know west bank being aware of something and actually doing something about it to do things. And I think executive branch need to recognize that because they can at least prioritize those those jobs jobs that need to be done now and get some of those that are critical fixed. And let and let let us know we at least or we are supporters us submitting these plans for engineering and and get this thing moving. Because some of these committees I've got communities in my district that are rationing water in a lot of us because the growth of the green wood. I've got communities in between the entire town problems septic systems with lateral lines running across the roads in the it's a it's unbelievable we're in the twenty first century. And yet were we're trying to make sure everybody and I I. I'm all in for broadband. But we cannot use it all for broadband we have such critical needs in our water infrastructure in this state because we're going to fall farther and farther behind it it's going to cost more and more more and I don't check and forms that are hauling water to their chicken houses right now that should never be. Because food and water to the most critical things without him we don't have much. I don't care if you got broadband or not. It was that I sit here and watch does give away a hundred fifty five million dollars for contact Tracy. Which was a absolute. Failure. I'm what your virtual training from schools we have thirty seven thirty eight thirty nine percent participation rates or the contracted these these a contract out to to call up to whoever to the virtual training so our kids could continue to get an education. Nobody used to. We throwing away money millions hundreds of millions of dollars yet we were we're letting go some of the most important and critical things needed for a human life and that's water and it's been a long time since we spent all any money on water instruction the state. So I think the government needs to be aware that. And And a prioritize those things if the lost let's it least do what we can on those. Get those that are our top priority either way then we can move on later on some of the other hopefully any other any other. A representative back. Thank you Mr chair of. Secretary work for appreciate your effort and I appreciate the the study that you did and you said you came up somewhere around five billion dollars I think we've heard that four five billion dollar number float you times around here so I'm. That looks like that's. Numbers got some credibility of from an engineering sample just looking at things And until you know what you're working with as far as I think we've got the needs side of this thing pretty well developed at this point but we don't know how many funds are out there so my question to you is this quick questions are there moneys right now that are spear headed to address this issue presents a hundred million dollars or something of that nature that you not that that they are committed they're going to address this issue at this point. So not not from the American rescue plan funding there's there's not been committed but we do have with with an existing programs within the farm agriculture natural resources division state revolving loan programs so you look at the past fiscal year or we we distribute about a hundred. by sixty three projects about a hundred fifty million dollars worth of projects and and a lot of that is this loan your low interest loans just at your help them be able to do their projects not hundred fifty million dollars but this in your in your on your your city council budget but but we do have those those existing programs with state revolving loan program in Arkansas just a quick follow up to mature escort yeah of the. The but the point and I want to address that this is until we have that that money that chunk of money out there at that point then we can start as a chairman mention we can start prioritizing you know the thanks plus we can also help develop plans in terms of are these going to be matching grants where those matches can look like so if you give this group of people that are out here that that look like you know they they want to get started they want to do the right thing but it's like we don't know the rules of the game right now I think until we get that money out of the rescue plan say okay this money is there let's talk about it then we do we constructed some information around it thank you very much Mr. Thank you representative back. Of. Represented by Senator Johnson. Thank you Mr chairman. Of Mr secretary I've seen that as quite long the spreadsheet list of the proposals that came into your office related these are both funds and and of course the categories were brought I want to talk about water. I saw things on the list like our water department office needs a new roof we need to upgrade our software billing system and again those legitimate needs I don't take away say that that they are needed but has your office done anything to prioritize that list of ones that are actually people that don't have water or like the example cited in in Conway County their water system is is threatened by either capacity issue exacerbated by the drought or some some other criteria again I I know people need to upgrade their billing software and you know we're all gonna need new roofs Center later but is there. I guess what I'm asking did your office separate the wheat from the chaff in some of those are out of that group of projects because he we can throw out a big number and say oh gosh the need is so bad well yeah there's needs and then there's real needs did you Sir some prioritization that's already been done by your department. Yes America so as part of this may help to respond to resent backs are common as well so as part of the working group report that we put together someone we we have a needs survey or you you know identified that talked about that and then we we came up with the a plan or proposal to move forward so so instead of you know picking your here are top ten twenty thirty projects from the list that was submitted it was a little bit of the same same concept I we've we've got to know how much the how much funding is dedicated then we can start your prioritizing the projects so as to what the working group did and and I'll be happy to to share it was put together some organizational ranking criteria which included you have several different factors what's the median household income or you're with are they doing cost year or your are they do they have a compliance issue with the department of energy environment so several different criteria just to prioritize there's water projects or how close they are to be ready to to your going back to the show already common how how quickly they are able to move forward with their projects so we we've got that list I'll be happy to assure that if anyone's interested in and seen yet but was kind of the same DO what we we did pick projects didn't say this project more important any other because it would be dependent on how much funding I was overall available. Well I'm and I appreciate that you've done something in that regard I've. Comes back to me was reminded that in the area and west Pulaski County I was referring to that to a thirty percent of the wells tested tested positive for coliform contamination we've and again I know that you in some cases you're asked to compare apples to oranges I appreciate that but I would I would appreciate if you would give us whatever the result of that that was also could you also share with the committee members the names and and affiliations of all the people that were on this committee because we're as you mentioned there were no legislators and law so if you just let us know that Preciado thank you Mr secretary thank you Mr. Thank you senator Nelson of center call where you're recognized thank you Mr I just want to point out as many times we've pushed it to the secretary ward that he has been transparent and open and helpful every time that we've done this sent in and I stand total quite often in in our office here browbeat him home the the processes that take place but even sectors of department have bosses and so of everything he's done has been the up front and usually fairly quickly responding to the questions or the trying to get information back in the office of the member of the team all day process is but but he has been a very helpful in in the whole of the effort of trying to get this one is rude I just I just want the Committee to know that thank you Mr. This call will. A representative baby. Mr secretary just a question that that report was I think the last time there was a meeting that working group was August of twenty one NO a committee on the work that was quite extensive a report and I had a lot information in there that I found that people my question is the recommendation for the five hundred fifty one million for the grant program that seems to have stalled out which is completely different than the broadband we are in in new territory not charted territory with the broadband grant but this is an area that your department and through natural resources you've been doing this for years so I think it's essential and important we get that that five hundred fifty or six hundred or three hundred or whatever dollar amount to that committee at a get it today I mean to get it to natural resources to implement that grant program sending these individual projects through the Arkansas during committee it's just going to slow the process down and then to still throw the work back on you in your department so my question in all that is have have you made a request to the governor because my my thoughts with that request would come from your department and to the executive branch to the Arkansas during committee for those funds to be dedicated and is any of that taking place. Yes Sir and and appreciate that comment and and I would say to you you know what I know that there was a portal for the American rescue plan that people could submit projects that the very broad any anyone who wanted to spend a project for funding could submit something through that portal several have for water and wastewater and provides administration have have for the bears to us so so I do have I've got my office of a big stack of boxes and plans of of water wastewater projects that have been submitted and and we and we do appreciate people submitting matters as far as the the recommendation of the plan before you're you're correct on what was included in that working group report that we submitted last last year and yeah that was that was looking at your a little over one point five billion dollars we we adopt a good chunk of that would go towards water and waste water COVID of course gotten away and the need to respond to that so so we do have our or or proposal now is very similar system it's just going to be a matter of you know how much how much funding these left and how much money can be allocated for water wastewater projects ultimately as as has been mentioned that will go to I'll just kind of lay out how how I'm vision that that move moving forward which may be different than in reality but if you would go to the steering committee so you know as as has been mentioned steering committee you would would say yes or no or make adjustments to the plants we we may submit something in the steering committee my satellite that all like the criteria on like the number there may be some adjustments that that's been part of why we've been hesitant from foreign to say too much because we didn't want to give also on on projects or dollar figure that may ultimately change so goes to the steering committee from steering committee would go to to the. Secretary through peering through a L. C. for a for final approval of of whatever that dollar figure whatever that plan may be M. and we've had discussions of you know when it when is it appropriate to you your present that you know what once once at dollar figures named of here's here's our plan here's how we're going to move forward I will share there were you know we anticipate. Pending Mister Committee or legislature changing that whatever that dollar figure is us we would use a very similar process that what we have now to our current state revolving loan programs as you mentioned we we've been doing this we've got people who are dedicated to working on water wastewater funding they know what they're doing there you're certainly what I would consider experts in their field they know the people that are submitting the projects so we would what what our plan would be now with the dollar figures his name we would open that application Perry back up for forty five sixty days people would reapply more specifically for American rescue plan dollars our staff would review that. Fifteen thirty days maybe dependent you forget fifteen sixteen hundred responses that it's difficult but they will they will one hundred percent be dedicated to reviewing and responding reviewing evaluating those proposals from there it would present it we would present that to our natural resources commission at a public meeting you know and from the public people can combat two people can be there I had to make overall decisions on a what that may look like but so that's I'm I hope that I've helped answer the question but you're right that's kind of how how we set up a you know a dollar figure recommendation you're right as far as what was in that working report that calendar we we know that number's gonna be smaller now just because there's fewer fines now that's kind of how we see the the approaching a plan moving forward. Yes your. Your follow up. Well most of thank you I just want to thank you again Secretary for your work and and the efforts of natural resources and I ask that you know you said I want to give false so from what I've heard and what I see on the city and it just looks like they won't who. so I would ask that they did you make this a priority and move forward with this and let's get something to the steering committee so that we can we can take care of these water districts and and in the issues in the state and again I thank you thank you. Our representative Mirai you're recognized. Thank you Mr chairman center whereas when a question these folks especially in the smaller towns proporciones sector whereas and I have seamlessly hook can you not receive this grant well yes John we can but we can't make it and they said and they would tell me the mayor would tell me in a plant. John we can't meet this amount of money now we need three million dollars. And we need to come up with something like a million and even if you took all the royalties going into the city and all of the sales tax going in the city you could not reset of sector with what I would like to see done if possible if you could do this according to a per capita income in an area and I believe that that would help hello Lacer. Right now I will say that that is the fact that we've we have proposed in our valuation criteria is your meeting house of income and that would be a ranking factor as we're looking at these projects haven't we we certainly know that there are areas of the state that can afford rate increases not saying we're telling people that they have to but that but that's a common problem we've seen some of these areas need money to to have clean water and they can't afford it and they have to have a rate increase magenta for that either so the and the Legislative situation we we've had two situations over the last two weeks to emergency loans and rural areas can't afford an increase said we're doing emergency largest to help get them third day today I read insists it's dire circumstances in a lot of these places a lot and for rural areas that can't afford can afford even get the help that they need. So absolutely Sir are saying no other questions of she let me just say I think it's time for to come up with a plan on how to allocate these are four dollars for water to thanks staff for students at your bill a priority and we need to focus on the basics. And that we need to do about we don't need to put it off with that two thousand twenty six spend these funds so long we put it off I've seen this happen before it never gets done. So. Germany your status. I have a second. Almost forgot to post board representative fight you're recognized. US secretary roared I appreciate you appearing today on such short notice but my question is not for you it is for director **** leisure of these that have been sent into you already by we heard Springdale speak that that will call for lack of better words shovel ready how many projects do you have like that in your possession right now so we receive roughly about fifty applications through various ways we have a water wastewater devise recruit and so that's a mixture of US eighty each year or any rather a rule development department of commerce so we receive a lot of applications for water and wastewater projects there are some of those that about fifty or so that are specifically for arpa funds and we have also received a request to our standard state revolving fund where they've asked four or five dollars we've told them to hold on and wait we can if it's an emergency we can do alone some of these communities cannot afford alone they're looking for Arkansas alors which would be primarily grant dollars okay all these applications do they have water quality reports with them when they turn in their application that is discussed if they've got an administrative order or anything like that as part of the water and wastewater advisory committee they actually look at that that's discussed do you know in the state of Arkansas thank you I heard the number six hundred fifty what providers is there a do you have any that have. The water quality problems and no one number there I don't have the number off the top of my head but we do work with systems that have a water quality issue a law that filtration and some other things that they need to improve on in their system okay have any those made application I'm not sure if they have made it to our but generally if those were coming through the water wastewater sides re committee if it was an emergency that they needed to be funded soon and what we have told communities is is you can take a loan now because if your project started after March of twenty twenty one you still may be eligible for Arkansas hours but go ahead and take a loan now so you get your system fix. Okay thank you appreciate it welcome. Our German saying no other questions you're recognized thank you west thank. Are we need the. Daniel Dawson general manager search the water system. Thank you of this they are Hughes general manager of Jacksonville wastewater. The director over eighty chief operating officer district of engineering Springdale water utilities. And Mr his ward executive director of spring water. Okay. The the interview if you will identify yourself the record are you you're recognized proceed with your yes I me Ford of the executive director Springdale water utilities I've already spoke quite a bit and these people got a lot more information good information for you to provide so I'm going to let our chief operating officer recover any talk about spring bills Springhill situation and then we'll hear disorder from Searcy in Jacksonville. Thank you Mr ward all right as heath mention my name's recall for any I am the chief operating officer and director of engineering for the Springdale water utilities I work for the utility for approximately thirty years we've always been in a position to. basically be debt free. we've only borrow money once before in the past my tenure there and now we're faced with having to borrow large sums of money to finance projects not essentially to promote growth but to take care of the systems that we have and to keep our rates where you know the population can afford that we currently serve about thirty one thousand sewer customers by thirty eight thousand water customers in Springdale we are in a regional facility we serve water to multiple communities and waste water to multiple communities in our area. I'm sure many of you are familiar with Springdale and what we do as far as producing protein for our country we do have a large group of lower income folks that are. You don't have problems making ends meet and water and wastewater are one of the things that are very necessary to saying lie from an area so with our planning we we do planning on five year cycles To anticipate the needs of our community and there were in a phased approach to taking care of our waste water system where the first phase of that the ultimate necessary funds for that are going to be in excess of over a hundred million dollars to take care of that first phase as Mr ward explained earlier I is an improvement for the wastewater systems by fifty one million dollars Those prices have escalated over the planning period we've been doing it for several years we do have plans that already hundred percent they have been bid and as Mr ward indicated earlier we have to borrow about forty five million dollars forty one million dollars to take care of that and to use existing funds to make up the difference. The project essentially includes the rehabilitation of existing clarifiers and we have additional clarifiers are high service pump being to meet a rainfall events and a storm events that occur in our community as you know we all have aging systems and unfortunately with that we get language over time. We have submitted the project to the group submitted many hundred pages of plans specifications and the narratives for them. we are seen cost over runs as you know inflation is affected the cost of just about everybody else's project as well. There are a number of people that need to speak this evening I certainly would like to entertain any questions you may have regarding our system but we are shovel ready we are ready to begin construction and any funds can be released to help defray those costs would certainly be welcome I am encouraged by the tone of this group and what I'm hearing the Saturday very impressed with the the nature of the group here and of the knowledge the office as a regarding the situation that we're all facing. Without all entertain any questions allow others to get the opportunity to speak for you. Are any questions from committee. I have one eight four four eight our Springdale ready for any major expansions I mean I know that's a fast growing area of the state I went to school up there for four years sixty nine and it was pastor from federal to Bella Vista there was nothing but Katelyn Pitsch trees and apple trees but now it's a totally different you know the judge just a whole different thing. And I know there's gonna be more expansion and there's gonna be more industry there are you quipped water wise waste water wise to handle a large expansion of industry thank you chose to move into spring to. You know we have certain areas within our community that are poised to be able to accept Industry growth in industry I we are not for seeing a lot of that right now so it would be difficult with on the waste water side we do have a a number of limitations with our system so it is spatially important as far as where those facilities would be located It depends I wish I could give you a flat answer you know some industries require a lot more water resources than others as you all know Springdale processes a lot of food now takes a tremendous amount of of water and the ability to treat that so it depends on where it is in the community course we have groups that work with you know industrial folks out there looking to relocate and things like that so we work with those people on a daily basis to try to accommodate whenever we can Springhill is always been known as a business friendly community and we work to all efforts to try to encourage business in our community which you know of course strengthens tax base for all within the state so while I can't answer your question directly you know we make every effort and we do have to turn people away in certain areas of the community Sir. This might be a dumb question but. I'm so once every such thing is dumb question but what about the owner's written. What what part does that play and bring to. Well the Illinois river edge you know everybody's talking about it deals more with wastewater and how it's discharged and the degree of Treatment that's necessary to accommodate those requirements in certain you know it we have one of the most advanced biological treatment processes in the state and it's necessary in that region to maintain their pristine nature of those receiving body of water it affects the cost effects what we can do and going to gross I am very concerned in the future that will limit the ability for the region to grow due to those constraints that exist in that area so. You don't you know operate or anywhere else correct our water is drive to her percent from the beaver water district yes Sir okay thank you any other any questions from members. Of. Use. Good morning. Thank you Mr chairman I want to thank all of you first of all for being here to listen to our industry's needs we appreciate that very much more very thankful to you and I appreciate the opportunity that you're giving me to that to hear specifically about something that's going on in Jacksonville my name is the issues and I'm the general manager at Jacksonville wastewater utility we provide wastewater services to the city of Jacksonville and to the Little Rock Air Force base we have a long standing contract with the base that we will maintain twenty nine percent of our treatment plant capacity for the base specifically is critical to the base's mission that there's or treatment needs are met without any interruption at all so anytime we contemplate any kind of expansion or adjustment to the treatment plan we have to keep their needs in mind as well so our projects stem from aging treatment plant equipment and we begin to designed to replace some equipment and would also increase our capacity but then as are designed went into place we started to have some failing equipment as well so we believe that our project met the criteria for the Arkansans and we felt like it fell directly in line with when they would be administered because we were going to be shovel ready by that time. We have a preliminary estimate of about sixteen million dollars for this project and we responded to the survey that has been mentioned with with our project and our needs of course as you've been hearing costs have risen drastically and also we're getting to the point where we're unable to get equipment and supplies in a timely manner so are sixty million dollar project is now about nineteen million and that excludes some of the equipment that we excluded due to not having the funds for it and and then just the timing as well we have managed to replace three new pumps but it took about two years which should have been about a six month project so as all of that happens our our costs continue to escalate. So when there was no procedure that we were aware of to obtain the art the funds at the time it was needed the Jacksonville city council approved a bond issue to fund a portion of our project and we receive those funds in December of twenty one but even with all the funding we've been able to put together we're still going to be about six to nine million short if we're able to add back the equipment that's failing. So federal funding you know as you know was provided over a year ago and we still haven't it hasn't been released to us and so what we're here today as we've told you is just looking for a way to be able to go through the process and obtain the funds and as you know timing is of the essence since we need to be able to use the funds by twenty six and we are ready and and ready at Jacksonville for that so that is what we've come to discuss with you today is just if you would be able to help us get that in process I appreciate your time and I'll answer any questions or do we have any questions from committee. All right Mr out of also yes Sir. my name is Daniel Dawson on the general manager for research you are utilities again as others have already said we really appreciate the opportunity to be able to get to come and speak today and bring these things to light. A source you are utilities is the regional water supplier for the majority of the population of White County we're also the provider wastewater collection and treatment services for the city of servicing. CSRC has approx me twenty three thousand resident or people. Project five percent of searches residences and businesses are not being served by the city's wastewater collection system but instead have septic systems. This affects by six hundred homes and businesses or around eleven hundred fifty of sources population. Most of the subjects situations are located on the outskirts of the city many of which are in low income housing conditions that cannot afford the cost of wastewater collection infrastructure development. Of the local unit of the Arkansas department of health has received numerous complaints regarding the non functioning septic systems inside the city limits. President so development funds are limited expansion of services wastewater collection system has been economically unfeasible. this proposal seeks to expand services wastewater collection system into these areas that are currently on Seward so that potential and actual negative health and environmental effects can be eliminated. The total project estimated cost in November was eight point two million dollars we do have a local contribution of two million dollars from the local arc of funds so the total are perfect grant funds being sought is six was six point two million dollars Chris again I say that was November dollars you know what inflation is done since November since last year so it may actually be more than that we already spent several thousand dollars on preliminary engineering plans for this project the eight point two million dollars estimated cost includes all design and project engineering and estimated construction cost in twenty twenty one dollars. Of this grant application was submitted in November twenty twenty one to the artist your committee I have delivered a a copy of the application to of the Department agriculture and then send in like trying to copy to the chairman of the steering committee. and we're a we're now waiting just a a favorable determination as to the merits of our project so we can find resolution to an issue that's been festering in our community for decades. Of this problem this project will need you funded soon so as to have enough time to complete the engineering plans and then to the project and you all already been hearing about time is of the essence we run a hundred under deadline and the sooner you start the sooner we can get these things corrected I appreciate your time to listen to me today I'll be happy to enter whatever questions you might have or are these safety systems inside the city limits yes they are insensitive. Are any of the questions from committee members. Thank you Mr Johnson thank you ladies and gentleman. Our next up is the tri county regional water just. Peter John Choti Ralph Rogers one cotton and Mr Robert for representative Robert Dale. I do have a little background on this land. Thank you Mister Rogers. over the last four five years tri county situation and I've yet to figure it out it seems political committee but and I may be wrong but I'll let you guys explain what's going on with this this this is been an ongoing problem for a while correct are you if you identify yourself you're recognized the. Push your push but. This John showed on the general manager of truck an original order when cotton is on the border records of former president. Robert Dale and so tracking original order Uh we're. Slightly different the way were organized to start up serve water in pope login your county we've since expanded into customers now in Conway county Johnson County Perry County in Scott County and keep keep on growing and the Represent over here with you know we don't get of your millage we don't get the everything we have to drive from rights no millage no sales tax return back of the the local or both the city and county funds the water systems like us you know we're totally. Left out of all you know don't have any the funny everything we have comes from the ratepayers and so We've a. What we've come into we've had to absorb now for small systems that took loan funds that were mentioned and campaign back their infrastructure so far gone they could drive any the rates the and so we're here we are taken in the sessions we have to take on their debt Sturch run their system we're doing a more efficient job so we're able we're able to do that so. The first session we have put in a brand new treatment plant we got all that go one as of other smaller systems were in decent shape the one that we're on now The it has the only source of water in this whole area over in your county the whole source water for the so there and the another city stepped in and helped us serve water but we're having trouble with them now for seven years. pine for regulatory approval to a bill made this is replacing existing treatment plan that's over there of course it's in a low income low income agriculture area and we've been like that when we work on the same for seven years working on getting approval just put this plan in and we had been held back in our flushing cost of what we've heard all the rest of our prices just going through the roof and it's gonna make it where we are in it's critical that this source comes back online during the drought conditions like there's been right now we've been within days of the entire region over there we're talking the of chicken industry the farmers the plants the city's been totally out totally out water within days during the last about eighty eighty eight to ten years ago during the last trip that we had so this source it needs to come on line to supply the area could fly back up to some other areas it's a critical need it's it's ready to go and so. Would like to go back and call that was that's been the hold up on it is basically funding in the area because like so we have to get everything from rights there is no no taxes though no mention of the coming in on their and then we'll go back to our seven years we've been working on getting the regulatory approval to put this thing back in it was already there start with of was in operation for I don't know thirty forty years and we're just unit back go on been been get held up on it everywhere we go so the Health. The department of health we we've got the of course there's is give us a permit you with all that with a lot of that was already place we've got it back and so we feel I'm in the the reasons I've been given is they've got had some turnover and we have lots of these projects that are necessary you know we're talking to the whole state you said six hundred fifty sessions are fine they say there's a bottleneck projects there and so that is going to be and one of the other issues we have we've got to twenty six to get these things through we don't have time to wait five or seven years ago for his approval process we've got to get we've got to get some some kind of streamline you'll give them give them some deadlines I these projects at a certain money level you know should only have a certain amount of time for this was pro process to go through maybe get some contract help form if that's what they need you know to get the other engineer to look these projects to. To get approved to get into the pipeline to make anything by twenty one of these is involved city Plainview this is the city point you were talking about they had a water treatment facility they just the you know the answer just like all these other small towns low income they had negative growth in their system ran down and so part of Health USDA in our city they have loans they the women of course they said you know like secretary work that I come to you know they got lots loan money out there will come take a huge system fix but then I still can't pay it back and so then they'll come to the next you know whoever can supply water and say could you guys take care of this system absorb their debt form some prior loans back and then you know in the night and then we do we can we come in there get it like say we run our system real efficiently all operates in your ear we are going to try to get this thing put back together and we're getting held up on. You only get approval because the okay make anybody can have a source water in the in the city now that's fine all right now that you know that's just gracious that they're splitting their supply with this but the supply there's limit we have to have another source in that area or you know we're gonna it's gonna say if it is a critical need over there but you can get the approval of the health department yeah it's just what is it what is the reason for that will excite will and when whenever we send our you Senator planes in and you're behind you know the bottleneck I guess other to three other projects their view there's first thing it to yours and then when they get your plans you know it might take awhile to review and I know this in back comments and somebody's regulatory issues we talk about are the you know we're we're want to have some of these new regulations coming after APA not help Arkansas but they're down in parts per billion one of the things that they're having to do you know it's it's disinfection byproducts they do they do regulations that are the study that create on from the pair you have to drink all right gallons of water a day for this one regulation a hardship does not you know it's not impossible to do and so they're having to make regulations make treatment processes make you change the entire treatment process in these water treatment plants. To trade for process that done the space here element others run up the cost to all of our you know all the right places out there that critically need this water this is been going on for seven years seven years we first applied and we first applied in two thousand fifteen for this project and you know it it's been it's it's it's been critical over there you know even during the during the ice storm we just said they were out of water for a significant amount of time there there's no no no no reason this shouldn't be in this this product are been done funding approved in now that the now that our prices have gone you know going through the roof yeah we need we need it's it's a low income area it's a rule underserved area it would need some help is anyone from the health department I'm I'm gonna ask staff to get in touch with the health department and give a response to one of their not Working with tri county. And I resolve this lightning rod yeah let me run and it's being late you know I say it's it's working but it's it's just slow yeah. And if we have to bring the health department will bring about. Of. Anyone else. Mr cotton. Pushed even you bet on this board for a while right I have Mister chairman shows witness to just always good to see but it. Corporate Rogers no August coordinator Ralph Rogers or good friend he said. What you said earlier about the water I think he says the court of water one day's gonna cultivation of water court will and in one of our mission fines and we're trying to do is to try to get as much water as we can if chiefly report recounting of Mister Rogers quote on the fly but of our cultures grown up I think John Locke six million dollars to seven million dollars no extra million that's the last of of thank you we hated him we don't win the next we have made Bingle more higher than that so we're hoping to get this project progress quickly possibly can all these communities are unique you know. Thank you is not like Northwest Arkansas you got ruler isn't totally unique and have different needs. Then they wouldn't Springdale available bid build so. Up. I would love to hear what the health department have side. If you're someone who are. One full chair. Matt Gilmore from health. Thank you for the question I heard some of it I haven't been all conversations I'm vaguely aware of. The issue let them run there's not a bottleneck there's not a hold up we are proving stuff as we get another letter to comments to go back and forth trying to get clarity on on questions that we have to meet regulatory obligations we have. There is I know it's been an ongoing issue with a number on I think there's issues with the quality of the water in the type of water there I'm happy to provide my cell phone and work with whoever I need to work with but there's not a lot. As far as this issue I don't know all the details another has been going on for awhile I spoke to Representative he was a representative Barry about it couple times. I think part of the issue is getting. The plans from the utility to us that we can approve and we'll meet the regular regulatory requirements we have sent you a tricounty submitted plans. I think they have I think within have questions about what they submit and try to get clarity there and I think there's I don't know all these seven years. I don't know that we have the plans for seven years I know there's been discussions for quite a while from what I've heard I think the issue is. This is my perception I think that there is work done on it and then things kind of quiet down. We don't get all the information we need we ask for it not sure what happens then it pops back up again I don't think that I don't think the Department health is a hold on this issue I'll just be honest because when I'm here I talked to Mister Rogers Ralph Rogers who is question call me for five years. And he he he always comes back to the health department of holding this project a we we have we have regulations we have to follow as far as I understand that but seven years long time I totally agree I don't think the Department help though is the I think there are things that. I think there are things that we need to see in those plans and we're not seeing those there what do you need I don't get I'm get you the detail and like to have a list of the two to nearly what we will so we can get this practice in the latest comment letter that we sent back to let him run I can get that for you are I'd like to I'd like a copy those plans yes Sir that you require so we can move the tri county project yes Sir. Okay. Anyone else any questions. In what Mr choke jobs so as I say that the the last little bit is as been helpful I requested Mr Jones that help are meant to actually come up there and meet with him at his office here lately and we met up there and we went through fifty three items that they had the last blessings we had they started off with a hundred and four items for to the only plans like that I let's look at these hundred four we'll be back up a little bit we had a meeting back women's winners Mr stones there and they came in and said you've got about four items we need to look at at a meeting in it with my board members that and in Russellville and said I've got about four items that we need to look at in the end so we come back. After that then they then the engineers got a hold actual plans look that we were sampling protocol before that I don't think anything in been looked at and then we come back with the letter of a hundred four items and so our engineers you know say Hey here's answer those on and Ford and the comeback of the hundred twenty six after further review more to that I that way and then of course within fifty three Mr Jones it's been great to work with his help and we went through we had a meeting his office with all fifty three right there in his office with them we responded and that's where we are now. But a representative form representative Dale. Well we're owner or a. Seventeenth. Comment letter. It would appear that. Of every time we clear something. Hundreds of other things stirs up so. That's why they we've been so frustrated first of all are dismissive of Robert Dale I'm chairman of the board a bit on the board for twenty plus years except for one a sharp determined in the House. But eight years but. We're serving a rule community there several towns in our. Counties that we do not serve. We serve. In. Mountainous areas very difficult but in land slots of maintenance We can just have a little shift or something in the. Rocks and we have leaks. We cover a real large area of several counties. So we have loan we have lots of Transportation expenses. And. It's not and we at the he mentioned there that we have no nothing but right to go on. We've had several types of loans we've had a loan approved for this thing for about five years. So it's not been the finances that kept us from trying to get it really. But. What's really happened is that it went up from six million dollar project to a seven million dollar project. It just seems like that would. We're not getting the service from. Our the Arkansas. With the weather will stay the health department or the whichever department it is. That. They don't have enough people to review those. And you know maybe they need some more employees to help on. So they can get these. These projects reviewed and come back with that first come in and they have everything covered so when we do it again. We don't have to do seven comments and and try to satisfy In the middle there about after the forthcoming at we did ask them to come up there and visit with us and they day at. And they listed for things we needed to do it. And after that the next comment Wallace another hundred and four discrepancies. And enters. It's just a house such little things that they have one of them was that. every day you go down into where the water's coming up from in the plant. And we had three entrances of one interest to that but they wanted three. And I'm sure that EPA rules out I don't know so it's not all health departments. VOL no dragging this out any time you drag out a project especially in this day and age with the inflation you increase the cost of it substantially in a short period of time is six months from now this could be if two thousand ten million dollar project correct so this needs to be dealt with. As quickly as we can. Before we had I got all I got a good feeling we have a saying the end of this inflationary pressure. For sometime. If I Mr I agree and I will get you the latest comment I think a lot of the process and I'm not an engineer but the lot of the process with these water approval plans is you know we get the plan we look at our engineers go through it and they have comments and there is a lot of back and forth sometimes you know there's an engineering firm involved. When we have a comment or question we go back to the engineering firm whoever submits the plan. We ask for explanation or whatever. Not all not all the case I'm not sure this was situate situation or not but sometimes we don't get the clarity we need we have to go back to again and sometimes that back and forth I think our turnaround times bill fourteen days once we get the plan to get a comment letter back out sometimes we don't hear back an engineering firm or whoever four you know sometimes a month that's in somewhere it's been a month I mean I'm not saying we can there are there's always room for improvement but I'm confident saying I talked or folks about this about a month or so ago on this project I don't think this is all important health I'll just be honest with you And I find the engineering for. We don't. The engineering firm works for the water utility are and the more than one. There's engineering companies all the state that I do that right so they. When I saw they were with the engineering company our engineers communicate with that engineering company that does the work for these utilities are hired by the utility company we have engineers no more just sounds almost like and I'm lives I've lived seventy years. It's almost sounds like it's just all. If you don't want something to go through these dollars. I'm injured I always in the dairy business forty some years we didn't have time for styles. You have members cast twice today. Some broken you fix to. This is this is one way to long seven years is too low if I could say the one thing. We want people to clean water we want people have more water we're not department was not trying to stall this money's I'm confident saying that they want to get this done and over with we just have to meet the standards that were set forth by state law by federal law and we will I will get you the latest information this bill there's been lots communication back and forth we are not trying to stall this project I can assure you. Seven years long term represented by the you're recognized for a question Mr chairman I've heard the comments and you we can all point fingers at it either side because dealing with the projects similar to this right now that's been going on in in my district for. Probably four years with different issues back and forth and the essential part is how quickly you respond to the issues that are raised by the department of health or the proving agency. So that's one thing for asking department health for all their plans and correspondence I'd also like to see the timeliness of the response back to the concerns addressed by department of health and their issues because a lot of times when we may think those rules and those issues are stupid and we don't see the purpose for that you know but but a lot of these regulations and different things change all the time you always say elections have consequences we're all dealing with some of those right now in the state so. There there's blame on both sides is what I'm thinking I'd like to hear from the district and and see their responsiveness. To the issues that have been raised for department of health and I know for a fact and I don't need just to defend apartment health But they're willing to come and sit down with you and discuss each of those items with you in your engineering firm and and I'm going to echo with what with what Mr Gilmore said the the problems that we've had in our in our area a lot of those problems have have come from the communication back and forth between the three parties the engineering firm the district. And and then the concerns of the approving body so if you could provide that information back to us on this project to that would give a little clear picture of of what the hold its had to be and I think that would explain the story to this to this group a lot better than a seven year time period it's all the government home in a so thank you. Well I in response to your. Observation there I have with me. A timeline known all of the things that's happened. And I would say most the time or engineers is answered back pretty quick. But then. All right you know their workload and everything I guess prevented them from from looking at it very soon and they were. Most of the engineers that entered back in about thirty to forty five days except lots of times there's there were so many questions it took him a little bit longer but I've got that with me so I can give this to you if you're if you want it. Mr chairman I appreciate us you listen to this today and I have confidence in this organization here that we're. Speaking to. Because I was so proud to be a part of it for. Portion of Pat. And I think that to. I've always told all of my constituents when I was a representative. Was that the best part. Of being a representative was being able to help. Constituents. Was what I did it was the help that I could revive. And so I just want to know that we appreciate anything that you can to. For all the people Plainview the people struck in water pay taxes they pay they pay the salaries of the people's health department I don't want to be back here in six months but you're more and asking you for those plans again. Senator you'll have the stuff of this week at the latest okay thank you yes Sir our anyone else have any questions. Sixty nine. Thank you Mr chairman I had to prove to serve owned truck County Board for six years and it's a it's a great organization hi I've said it before. For the happiest days of my life was when I got a rule lawyers where I live. But the scary thing about what we're talking about today is. We by and John correct me if I'm. Wrong way by ever gallon water that we serve those people in your county with from Danville. In times like we're witnessing right now with Dr. Situation. Those people our customers will be the first ones that they cut off because they're gonna take care of their own and that's the right thing to do. But. Ever groundwater that we give. Come from the city of an. And that's the scary part. In my opinion. Well let me say this to. Less. Let's not shoot the messenger Matt has been a big help to me trying to figure out what's going on. But it's just my opinion that the health department seems hesitant to use the water out of one of a number of. And I'd like to see see there get out get in or get out. Because. Our people needs the people over there I keep saying we of a part of that board for a long time but we we need this project badly because we we need to serve those people there we're the only thing I have. Thank you. Thank you very any one else have any questions. It's not German thank you for coming today. That. Mr MacNeille manager of northwest Arkansas conservation authority. Hello your after such a name for the record I might start. My name is Michael Neil I am the facility manager for the northwest Arkansas conservation authority regional wastewater treatment plant my facility is a three point six M. GT rated facility treating approximately. Right now three point four million gallons of water a day we serve the cities of Elm Springs Tontitown and a portion of the city of bend bill we have contracted with the city of cave springs to take on their wastewater flow from their aging step system and we have begun negotiations with the city of hyphal to take on their flow for their waste water as well. five years ago in twenty seventeen we started these planning to expand this facility because we saw the need we're initially. I thought we could go to five point four million but we term needed to actually go larger and go to seven point two million. And I'm gonna be honest I don't know that we've gone big enough at this point we've spoken a lot about shovel ready projects currently the shovels are just about to move on my project we did it last month and prior to bed and January the cost is estimated at fifty five million. The engineers came back in March and the estimate was sixty five million well the bid came in at seventy four million dollars we've actually worked with a and R. C. and and west ward is actually been my plant he seen my facility it's been a great help in our C. is giving us a low interest loan. But what I hear from my constituents in my cities is this. Eighty five million represents at least double digit rate increases for this customers we're looking at small cities they can afford to handle wastewater as it is I don't know if anybody in here is familiar with the city of Bethel Heights. I take it we may have heard of it maybe not that city is no longer in existence because they could not handle their waste water they were a member should be of my board they were unable to secure funding they were unable to get things together in time to get to Nacka. Consequently there are no longer a city. when you speak about shovel ready it it's here I've got it we're we're ready to build a building now we're going to start we just need a mechanism to some relief for the for the constituents of the cities they need they need something to tell them that we've we've heard them we're gonna do a little bit but we haven't seen that we've applied. For grants we've just heard no responses actually in November of twenty seventeen sorry number twenty one my board sent a letter to the governor and in December we received a response that said when funds were available he would he would figure out a way to disbursed in but we haven't seen that. Thank you. Are there any questions. Question from. That was December the twenty first did you receive that was actually have the letter it was December six twenty twenty one he says at this time we're holding off on water and wastewater project funding until additional funding of federal funds are N. hand eventually I hope that a grant program can be established for these type of projects and that's the last correspond to that with yes Sir okay. Thank you I appreciate you coming to ensure that McNeil thank you appreciate your time thank you. Are we have Mr Martin. Strathallan benzene. Ryan Hicks. Brad Hammon. Okay I think we have some handbills for you Committee. Mr Martin you're with Garber. Yes Sir. I would like to the point we also have an additional with the same Mr mat done with Kristen here's the story this is well. Max if you will yeah if you will be able to a little closer I would also like to point out we have not done with Kristen's years is joining us appears well today okay such one make sure you know he wasn't directly on the agenda there but want to make sure that he was recognized for one each of you speak if you want to go ended in five steps of the record and then you're recognized would present my name is Jerry Martin I'm the Arkansas Water team leader for Garber I've oversee all water wastewater projects for company across the state of Arkansas we represent the multitude of clients that you've seen here today the municipalities these different organizations regional water districts and so today we're here to help hopefully provide some clarity on the issues that are facing to get these projects under way you've heard from the forty third from There was Jacksonville Sir see all the different things are running into we've been able to work a lot of these as well several the other gentleman here on these projects. Thank you. I'm Byron Hicks I'm with my well in the engineers of the CEO of of McClelland consulting engineers. I also work with a lot of the city's entities around the state that would like to receive a and W. have use of the office funds that we're talking about today. Good morning thank you for having me here today Mister chair and committee members my name is Brad Hammond I'm the office leader for the fable Office of Olson and we also work with municipalities all all around the state. Okay thank you I'm Aaron Benson vice president hawking's we're engineers we also already entering farm of offices across Arkansas Sir primarily the water and wastewater sector of Arkansas and it's been refreshing for me today to say that in the gallery and listen to this committee well obviously as a very good understanding of the needs for water wastewater in Arkansas my comments were I was playing comments were to come up here today and try to emphasize those needs but I don't feel like there's really a need for that with this group I would like to take a few moments to mention a few other projects that are critical of this state just arm you with some more examples of why this is so important in Arkansas in one senator Johnson already mentioned earlier today a group incentive Arkansas that the didn't have access to clean drinking water and it's it's amazing in twenty twenty to the United States and Arkansas they're still citizens that don't have access to clean drinking water we represent that group in north central Crawford County by three hundred fifty homes people that have to haul a portion or all of the water every day these the majority of these people are low to moderate income they can't afford to just pick up and move to move to an area that has ready access to water they feel like their stock and you. They simply would like the the basic dignity of having water every day at their home. They've gone out the Crawford County is put up two and a half million dollars of their art of funds to fund a project to bring water to that community they've gone to secure another twelve million dollars in loans from USDA and they're ready to go we've set shovel ready a lot but they were ready to proceed and then the inflation that's being experienced across the state has created a two and a half million dollar shortfall for them keeping that project moving forward keeping these families we have access to water so the Arkansans somewhat assistance from the state would be greatly appreciated by that community to allow them to move forward and have what I think most of us take for granted in Arkansas and thankfully we can. Another very significant project in another part of the status of the city of may not mean as water treatment plant serves the city and also the surrounding county area wholesales in several regions there plant has some serious structural issues failures that at any point because our plant to cease working and leave that part of the state without water. We've been working with them for two years to address that issue what seems like a long time but in the water industry in the middle of a pandemic things have moved very quickly to design corrections for that treatment plant the department of health has worked well with us they recognize the need there and now that project is nearly ready to bid. But they're facing delays for the same reason with the inflationary prices that we've seen lately they're afraid they won't have the money once the bids come in the market is so short of the the market is so busy it's hard to get a better target contractors particularly in the area of a state like Nina interested in bidding a job like that amber this is. It's a critical need that you know we can all be sitting on the news that you know sometime soon if it can't be addressed in their work hard to do that. Dentist armored already mentioned comicon regional water district you already mentioned Kimsey those were two projects I plan to mention you today but I will repeat what Dennis said he was very helpful in his comments but they're great needs there and one other is the city Fort Smith in the city for Smith the utilities been on the news a lot over the last decade plus is one the oldest cities Arkansas their collection systems were built in different times with different materials and and they're failing they need they need help and a rather than. Speaking on all those issues today I respectfully request of the general manager from Fort Smith is in the audience today and we have a few minutes our love for him to be able to my progress this body directly. With that I'll I'll pass the Mike. Thank you hi of amet done with Christine and the President of Christians nears and let my friends here we we work with many water waste water clients across the state dealing with with all the same issues that I've heard today I echo everyone's comments about the need for for these funds that have been set aside I'm just gonna take my time here to just tell you a little story about red breast the need for this rescue money you know the word rescues in the title American rescue plan act right. I thought I thought I would tell you a story about a project that has been talked about in the chambers in years past perhaps of the city of hot springs but we're going to water supply project. For many years and We're we're fortune the to be the engineer on the project and to working for them for a long time. Their project after many regulatory struggles finally got the the the needed approvals we needed to begin full design input about the year twenty seventeen. And so we we set a budget at that time. For the project roughly a hundred ten billion dollar project a large project. The city then turned around and generate study. And. To determine what water rate. changes need to be made to secure this hundred ten million dollar debt. Then at that time we begin design and in and we've moved forward to about in the year twenty twenty at the beginning of the pandemic. just so happens they passed a bond issuance of a hundred ten million dollars to fund the project in whole. in the we we get we started construction on the projects later that year it's a large project many contracts in we started construction of building the jobs in late twenty twenty as we moved through twenty twenty two years of pandemic of course as we move through twenty twenty twenty twenty one hours twenty twenty two prices begin to escalate and escalate like we've all seen over the last several years. And so we did of all the raw water line project consists of a new water supply to like wash it all along raw water transmission line and what what a treat. A we we did the we we we we got the intake structure under contract in twenty twenty one and we did several raw water contracts through twenty twenty to twenty twenty one. Seeing increased cost each time we build another contract the price is steadily we're going right just following the economy that we all live through. Well just so happens yesterday literally yesterday at two two PM we open bids on the water treatment plant the next the largest phase of of the project. And we are that we go bills of the water treatment plant the project is about thirty million dollars over budget in total including water planned project. So they've got a dilemma and I Springs now they've got to They they're they're they're short under ten billion dollars is not going to get it with which to which which does a lot of them similar stories we've heard today. But they literally we literally set at a hundred and ten million dollar budget twenty twenty and then. The pandemic yet and now we're looking at a meeting about thirty million dollars more give or take. So they've got some of you know the US decisions made to the these decisions have not been made we just open the bid yesterday but you know because against stop in of the you know with that we've already in construction on about seventy million dollars for the work you there's no stopping. Do we slow down and hope that the economy's gonna turnaround which I am not sure who to buy things that's good I've been Johnson. Or do they go back to the ratepayers. And raise the water rates again. To get to go secure another bond issuance to to finish the project so. It's a tough decision for the for the leaders in hot springs and all those decisions have to be made but my point is. I think that is a prime example of why this rescue plan was put out rescue they they need rescue this is the pandemic is a direct. They're overrun as a direct result of the pandemic in the economic of an economic world we've we've lived through the last two three years so I just want to share the story with you I know hot springs has been discussed in these chambers on other other water matters in the past I thought just give you an update in I think it's a prime example of of of why this is of of why the rescue money how how would why the rest you money is even available and watch what was what was distributed in the first place there's other projects I worked on a project representative fight in this link and it is but the budget has been drastically affected by the Arkansas vine the endemic in in the in the in the world we live in so just want to share that with you I'll pass the Mike down to I guess maybe back down to the end of the year. Thank you gentlemen We've all heard here today a lot of the how important is water sources to us how important water wastewater is to stay Arkansas it's an economic driver communities like manager Fort Smith coarseness under hamstring right now with this economic development and with their ability to provide clean water and comparable the server services to the communities you know eighteen this rescue money can come in and help them drive that economic and help them reset themselves and help them grow and do things Mountain Home Arkansas they have critical infrastructure that needs to be replaced to provide and continue to provide water for over twenty five thousand people in that regional in that role area. This money that can come in that's being sick here and that has been being held up is not being released we have a hard time lines on the back into this this money has to be spent by twenty twenty six allocated by twenty twenty four right now we're seeing timelines on equipment that a generator that a year ago with taking a six months to get significant. What those pieces of equipment are critical to the continued operation of these plants during the pandemic we saw these guys are sleeping the operators are sleeping out there make sure these plants running. The you know the ice storm there was some place that went down at issues this infrastructure these Quitman is critical in these projects are critical to maintaining that water that we all take so. Every single day we we live with we wake up at six hours taking during a copy of your your bottles of water and all the stuff sitting there we take it for granted so often but it sits there and we've got to invest in this infrastructure it is the most out of sight out of mind infrastructure is not a big pretty bridge going across the river. It is something though that every single person in this state has to have access to. The time lines are running into work quickly going to run out of time to be able to do these projects to get the equipment to put the construction to meet those federal guidelines unless this money is released as soon as possible and allocated to these projects is. labor markets have been a nightmare for a lot of our contractors as well I did provide I think there's a hand out of that everybody should have its the American council for the social council of contractors document and what this is is the construction place alert. This document outlines a lot of the issues that you're hearing about today this isn't just for Arkansas this is on a national basis this document talks about the the cost increases year over year of twenty five percent that we've already seen in the first year the pandemic and has continued to grow and escalate throughout the the next year to twenty twenty two the stock would also talk about steel prices for twenty seven percent increase is still priced fuel cost labor cost I encourage you all to kind of take a look at this and understand that as Matt said this is rescue money this is emergency money that we can utilize to help offset these additional inflation costs that we can help to use to get these projects off the ground these critical projects brought water to these communities that their systems failing or that they will be able to continue to grow or. So we just ask that you know we get some more guidance that we can help these bills policies to get these projects done and get them going. All the shovel ready projects we have and then there's several more that our plan that we can still keep rolling with after that additional funds or anything else the. All right. Thank you Mr chair committing of I appreciate the opportunity to be here today to talk to a little bit about some of the things that I'm seeing in this bizarre construction market that we're in I to just like all these guys have a lot of clients who. I I know can benefit need to benefit from these off of funds but not really don't talk about that I just wanna be very brief taste on the things that were seen and most of what I will say is the focus around the the idea of time being of the essence to allocate these are funds to the water and wastewater industry. S. as a few may have already said. We're seeing very few bidders on projects to have one bidders it is very common place now two and three we're lucky we used to have five nine ten bidders on projects there's not a lot of competition anymore because there's so much work going on in the market place Costs obviously are going up and not talk about that in just a second. Bidders are able to hold their bids for any amount of time anymore a common places ninety days now there are times when you know they don't want to hold on for just several days that's very uncommon but at the root of that I believe is our supply chain issue and are the labor shortage issue I think that's the root of this problem. The market place we are. Inundated with supply chain issues they're causing longer than normal construction times of causing prices to be higher than they should be we probably all know about the DC it's been at an all time high since October or November of last year it's more than doubled in cost ductile iron in its availability is is on and off you know when you when you need ductile iron right now it's very expensive You may get it this year you may not if you order today it's just there's there's no certainty about delivery dates valves and fittings. Controls electronics VF dis I have a water manager insured and to me the other day that for his thirty horsepower well he has to wait six months to get a soft start fort and that's just the election be more than a month after that you know this is the time that were in. stainless steel fiberglass material. Water meters they they generally would have about a ten week. A lead time it's forty weeks now that's just the this amazing the environment we're in. Of what about you chips. Do you. Well I think that's part of the that I was gonna talk about controls I might mention controls electronics PLC's and I think that's part of the you're the lead time in the cost of the electronics piece of it has skyrocketed I think chips are part of the yeah. It is Jerry mentioned still fuel labor generators taking eighteen months for delivery. treatment treatment plant equipment that a lot of the equipment goes into treatment plants from the same in the same boat. It's a yeah we're seeing prices very easy to to say we're seeing prices at a minimum of thirty and up to fifty percent more now verses in a post code versus free code so prices continue to escalate their very unsteady. It's not hard at all for me right now to imagine a pump station that may have a little bit larger pumps of controls be a little bit more complicated than normal or a a of water treatment or wastewater plant to to be a four year project now and is Jerry said you know we're these are fun to have to be spent by sometime in twenty twenty six and you know that seems like four years seems like a lot of time but there's a lot of those situations where it's we're gonna be pressed but the that's the urgency to to make a decision I believe now to to release the funds the opera funds and in my opinion. with we had the state receive half last year half this year water waste water was one of the original items that that this is meant to be spent all and I'd like to see the remainder of the funds that that haven't already been spoken for released for the water and wastewater industry so. And I'd also ask that. That these funds be spent on these public funds be spent on public utilities and not private utility. That's all I. Or. Anyone else have invasion yeah and yes Sir bred him again I'll try to be brief because I know we're short on time and engineers don't like talk so I'll I'll be perceive. I just wanna reinforce everything my colleagues are saying I've been in this industry the public works mainly the waterways or industry for thirty years now which I can't believe but it I've never seen the market like this the challenges that we have you know as engineers of professional engineers we all have an obligation to protect the public health welfare and safety and that's becoming increasingly harder to do because of these challenges we're seeing construction cost. On average increasing thirty percent more than the year before that blows budgets that the that we can't can also delay of projects we're seeing availability and and lead times like like everyone saying delay projects we it's it's almost impossible to hold a construction contractor accountable for schedule because he has no control over the schedule because the vendors can't guarantee a lead time on equipment so there a lot of challenges in the industry and part of that challenge is the unknowns regarding the the availability of funding so with that I'll stop. Thank you very much for your warm welcome thank you this morning I heard of resisting to the news and I heard of a they ran or viewing families who are all cutting back on food because they could afford it it ramps up between gasoline and food because and. Everything else was out and then I heard the other day with all six people up in Washington County in a in a fire. And I heard one of the fireman say on the news it's one of the it said when they have not have saved him and we might have had we not had to go back and forth and refill. Because they didn't have any water lines after. There was no water availability. So there's a lot of different there's a lot of different things that. That we need to focus on where this are for funds. That are more critical than some of thank refusing for so thank you gentlemen for being here. We've got Mr Robert Reid Sturch senior manager director of capital markets this is this is dealing with Project financing. Drive you want to come forward and. Identify yourself for the record you are recognized for the. But Mr Sir Mr hunt thank you he isn't Mr chairman I'm actually neither of those persons Bob Wright is a colleague who works for a cruise and associates my name's Kevin fought and senior vice president Stephens Inc Dennis I my boss our EVP of our department had planned to speak the had to check out for another meeting so if you'll allow me to penchant for them all kind of. say what I've done Senator Pitsch the Bill. Right better so we'll see you never know well thank you for the opportunity to allow me to speak today obviously on. We'll address kind of the public financing side of would you really introduce yourself yes Sir for the record sure Kevin Kevin fought with Stevens and senior vice president located in the northwest Arkansas thank you thank you. Okay thank you for the opportunity to speak with with the committee today As you've heard repeatedly. You know a lot of these wastewater water projects take a combination of funding I actually have a background in local government work for the city of Springdale and city of Branson for many years before I went to work for students so I have a just enough knowledge about these things to be dangerous but as you know often the times these projects take a combination of funding on funding and our funding in this case or state funding or grant funding some combination there of the bond process can take as much as ninety days from start to finish assuming everything's in order to do that once our bond company is it's called in. If a rate study has to be completed if sales tax has to be approved by voters to secure financing oftentimes those those activities take six to nine months so you know a big big thing in our world right now obviously Inflation is impacting rates as you know the fed is actually meeting this afternoon expected to raise rates probably again another seventy five basis points or three quarters of a percent that's the short term rates to give you an idea of of what some of these operators are facing as far as borrowing money and we just completed a bond issue for the city of Springdale at the end of may part of the rationale for that and I think was was a good rationale was their leadership in your for from he's and Rick today was to try to get out in front of these interest rate hikes that were coming. Since the first of the year short term rates have increased have tripled a long term rates have had more than doubled so we don't expect that to change anytime soon we're hopeful that rates will come down next year but that's probably only gonna curse we if we get into a full blown recession which we don't really want either however it might be good for my business if you will. That's really what I had planned to say and I'm certainly happy to answer any questions you might have. Okay all right I've seen no questions I appreciate you being here is that I do have one question yes Sir didn't understand you save you expect a three quarter percent jump in the the federal right that that is I think is what expect is expected today that's coming on her of this is not. it's pretty rare in my business yes right in doing this for about eighteen years now again had a prior background city management so you know five basis points wings point zero five at least on a daily basis used to be a big swing in our world and we sometimes see ten fifteen one day now that's. That's happened before it's not unheard of but it but it's not very common so we're seeing a lot of volatility in the market for sure okay thank you very much appreciate your time thank you. will move to item H.. discussion we have somebody here virtual also we have mayor of Glenwood adoption slow the mayor of Bosco. Can Smith Joe Anderson Cave City and Henry may Adams from About home. Joe come forward please. Okay. You would introduce yourself please for the record. I can't Smith mayor bisco. I'm Hillary solaire mail all. Get you over for. Okay the one you should be the ones that are virtual would you identify yourself please. I think we have an issue right now we we will we will get back to you. Okay you may proceed please. Thank you Mr chairman and the members of the committee to address the set on the my miscoded small town in Perry County. the kind of a unique situation that we're in we. Years ago we furnished water and sewer to the rest area on interstate forty. And the rest area was shut down several years ago for remodeling new buildings and everything. And we had been having so much problems with our sewer system. That when they got ready to hooked back up after they had redone the buildings. It was the decision of the our city council that we couldn't accept any more wastewater or anything from the rest area because of the problems that we were having. And so we were trying to. You get a grant to get our sewer system updated everything and that's when I. Receive a call consent the call will. About the death of. Might be some money available that if we would to let the rest area back into our water and sewer that. We could work out something there and so we've had meeting we had a meeting with the Department transportation with the. Had engineers we've had a cost the. Already done. Two of. To have this project done it entails working with twenty minutes ago and the Arkansas department transportation because it's too board under White River. Like I said we have we've had all that done and. What is a kind of unique about it I know. I've lived in Arkansas my whole life. And the I'm proud to be from Arkansas. But the rest area I drive by a lot of times it's open now but they have portapotties. And that's kinda bad look on our state. Because people from all over the country come through there stop in. And that's what they have and so that's what we would if we could get our system upgraded we would like to. Be able to take care of the rest areas so that it can be back up and running. Are any of the Commission. This call with you you're right thank you share I want to reiterate that the mayor Spencer of had a problem of between forty thousand fifty thousand vehicles a day passed it Richard. And when we uh got into it to try to get open it was totally shut down any no the poor quality of. And there's so many of commercial vehicles now that have to a park for rest because of the electronic log the truckers have to stop I encourage to. Transportation open it back up just let the commercial vehicles to park and they did they could report because at worst it's absolutely an embarrassment to the state that we've got this multi million dollar restoration over there that can't be functional because of lack of water and sewer now I stated earlier that I've been in the Senate for ten years and and it's been closed eight out of ten years a total or tutor it department of transportation the the year I was in a wheelchair it really didn't bother me because I had a cancer not grow away from when the Little Rock. Now I don't have that anymore not have stopped. She left her face turned red and we can joke about it but it's absolutely asinine that we've had the the almost one point six billion dollars that we could use for water and sewer and we've we've spent on broadband and and some of the broadband works in a lot of it does well we've not spent one dime on water and sewer it is time that we come to grips with the problems the inflation problem our our our the. Eight hundred million dollars we got this year for for our money is is is only going by a portion of what it would vote last year and it's time that we acted in and where Smith is exactly right about the the the stuff they put in the Komotini of saying that they have to be ground up and and and it's a Admirable that that the small community has been able to keep that rest area open for all these years and the and there other items that need to come before our committee that that does not come before Committee when we had our organizational meeting for the oversight committee. On on our phones that was the first subject that we talked about. And and yet today it's still laying on somebody's desk it all comes through the executive office in in and I'm not picking on secretary ward is not his fault. But the again of their products out here like this that that need to be fixed and again that place is being shut down eight out of ten years so it's not like it's something that just blew up last week and we as a legislature need to see that this money comes to the forefront and get spent on infrastructure items Mr chairman appreciates to. Thank you senator Caldwell. Anyone else. Mr Anderson John ascension. mayor Casey can you make sure your volume is turned up. Yes. Yeah I can hear you just fine okay we're we're a little problem here you. Right now. Just talk as loud as you can. Yeah. I can do that You're recognized. All right thank you ladies and gentlemen I appreciate it yes that is that I am the mayor and the city Arkansas here in stark county the northern part of the state and that I appreciate the chance to speak one touch on a little situation that we have here maybe give a little perspective from some of our smaller now there's a small role. you know we have our own water system here and we've been really blessed with that please yeah that will maintain it most the time in a very good state Sydney which is a very small community just are no or and for in the last two nights is had just mechanical breakdown after mechanical breakdown the person issue they had it was due to an electrical issue what I understand with the power being supplied by energy that has an issue there and their parents have learned that long and I mean well they have one well right now and then I understand I have a smaller that it well that's not capable of carrying the whole loaded just as kind of a supplement other patent convert that and there's plenty of other peoples and I'll reiterate that with the supply chain issues and other things they were in a real mess and so have a city we have a what we call a ball basically a metered connection between a city and Sydney and luckily we were able to turn that on and began supplying them with water and a law that was burned down so they had to hire you know contractor to come in and pull that entire month left out of the whale and and if the motor and try to find one I had a really difficult time finding one so this entire time with that's going on a city was was applying it with water and you know it's not a it's not even in this adoration to say that had we not been able to supply them with water they would have completely dry and I'm I understand that you know you've been looking at hundreds of thousands or more poultry house you know chickens that would have been at risk if you know Cave City we have our watermelon festival we have watermelon growers in this area and there would have been at least one possibly more water our growers that would have been at risk of losing their entire problem and that was straight from the grower. Referred to me on a phone call a few weeks ago. And so we did that and they were able to get a pump installed and I think it ran for maybe a few days and this the same issue happen again the same another or was found that while they're trying to get a logical issues resolved and so they were in a in related crisis situation at that point and as I began codified another motorbike out on spring Bills of one had that drive right away the spring building it at. All right so you know you're looking at over a. Where you know one this one community here was basically without water except for what we can be them likely we've got three whales and we have a three tanks and so you know we were not in a crisis situation ourselves that had we had you know even a small mechanical issue or something like that if it of you know it could have gotten bad for us or we would have had to stop supplying me with water. Com and we started making phone calls on behalf of them and their minor it started making phone calls and some of you may have spoken of their mayor about this I was secretary ward and the governor's office and some others have legislators were very helpful in trying to give them some alone options or other funding options to help them out but you know that three week period I think they went through close to a hundred thousand dollars and pretty much depleted their financial resources yes on this one incident you know in my opinion they that they can use you know another tank possibly for more storage I know that the Municipal League and some others are helping them to secure a backup generator which of the really really needed that you know they did not have an active backup generators the times one that allegedly issue happened I have no other option I could not switch to a generator to run their whale and they are right now back up and running but they are on a borrowed generator from the Arkansas little water and from what I understand on that I think they're burning about seven hundred dollars a day in diesel if you have. And so you know speaking just kind of on behalf of them for what I thought about they really are in a in a seal in a very nasty situation and you know me the population maybe a hundred or something like that I cannot remember to hold me on that but it's very low but I honestly don't have a lot of resources like other cities across the state have so you know all this that if you're talking about today with the finding and you know the timeline and projects the in the late and just all that goes the other I just wanna let you know that you know from the rule town perspective our population here's two thousand we have about fourteen hundred water customers on our system it is definitely a situation where time is of the essence for many is needed and you know these projects are are very critical these are just you know process that well you know we can do without that I guess we have to or something these are these are projects that are worthy of the standing in any case we realized and you know when we can supply Sydney that's great and we'll do that as long as you know we can safely do it and and keep our system now and but you know Cave City actually does not have a system whereby someone else is applies with waters of we got into a bad situation as stands right now we we just we just have to be at you know if read as they say would be in trouble I am actually trying to be real proactive on some things like this I mean discussions right now with the city of Nate's bills are south is always been wonderful that help us out with things and provide advice we're going to actually see if we work out some kind of all arrangement similar to what we have with Sydney and that way if we ever got into a situation you know water crisis ourselves we can turn on that supply from a sale and what's there pulling water from the White River so that you know they're actually they they can help us out as much as I need to. And you know that would be great things during this past problem with Sydney while we were supplying see the week at it and go on water from a sell on that would really help to make sure that we can get into trouble so that's really have really what I wanted to talk to you about that's all happened just in the last few months and it got you got a pretty serious situation within the last like we with our friends and partners from the Municipal League and the governor's office and I know some of you. Brandt was have made phone calls on cities I have I can do it I really appreciate it and anything that we can do with standing especially in the small rural areas it's it's a great great need and it'll be a lot in this state to make sure that we don't get into more of these crisis situations down the road which I'm afraid you're gonna see happen more more. Thank you for I appreciate your testimony. I thank you thanks more the situation across the state and probably what many of us or where we never hear about so thank you for participating today ensuring that information with. Yes. Any questions. Let me now. Anyone have any questions. Mayor Adams. Right here under she chairman and thank you in a committee for the time to come and visit with you today Mountain Home Arkansas is about close Missouri borders you can get north central Arkansas. And engrossing of you've ever been there we don't live or die by have proper soybeans or corn I make my money off tourism. And that's that's tourism's number one industry in Baxter County a lot of you for Norfork lake bills rose lake in the White River and invest in those places many times I'm sure. We of we first found out about some more funds we come in the way of this to the city our council made the decision at that time to put every single penny of it in the water and wastewater improvements. We did not offer any of that money to city employees or any other product we wanted at all the M. wastewater inserted set in the bank right now waiting to be spent. Of we've got to shovel ready projects I want to a of a. one of whom we call the southwest search pension project. And the reason that project is so important to us last year voters amount home approved a sales tax increase to thirty eight million dollars worth of parks work in building a community center Oct so we all may have seen him but fill in other places. That project is that the centers will be built on the southwest side of Mountain Home at the very edge of our existing server system it's about a mile or two from the issue Mountain Home technical center where they provide provide workforce training. And career training technology and all variety of industries anything from air conditioning auto mechanics the snare so now both manufacturing injection molding in those tough things. They are very anxious to explain the campus of the technical center but they have one severe need after notice server. Current campus of the after the Senate on second system and I can't grow without us getting server to within a five was called the southwest project which would serve not only the campus of a issue and let them grow the training Facility but it will also served game and fish commission who's bought property after and they're going to build a new office and have their area headquarters in the future after on the southwest side of town solution to state agencies that are really in need of some server up there that's love the Southwes product the other project numbered people here today talk about projects has been in the mail for four five six seven years let me tell you about one is been in work for ten years now a massive amend take a second and take a new facility on like Norfork we have the only and take on that Lake City Mountain Home does we provide water to seventy percent of people in Baxter County. Two thousand nineteen when I took office the engineering firm we use sep Balamand told me about a few water projects that I need to be aware of the new mayor. One of them was a Sentai in that project started in two thousand and thirteen. The reason is so critical to us is the location of it in the light when it was put in and who knows why the spot which drove for it is but it's in an area that if we do have low water years and we have many of those lately but it's going to happen again at some point in time we have to lay pipe across the lake to a barge and pump water from deeper water in a life the current anti courts located is fifty year old and when I look around this room I'll send off a lot of people in here today they're probably north of fifty lakh of sale and you get age we all to do with that that number years we require an ad intake facility is is north of fifty now. The city started planning this project in two thousand and thirteen. In nineteen when I was made aware of it we got a meeting lined up with core engineer they had a brand new Colonel let it just came in the office that month or within a few months. And we had a meeting there one day and Mountain Home with the core office and all the water expert reporter there and we're talking about the delay in what's happening. And I was fortunate enough I had no idea when I walked in the room who also next to but it was a new requirement. And when it came my turn to speak I had the original request filed by the city of Mountain Home that is in my pocket that was six years and a day ago. I pulled out my hand it harms that would you care to read this letter my. Especially the date when he saw that my only question who is it going to take six four years to get an answer of the court that project is moving very fast. We've now got everything done All environmental work done The engineering firm done a great job of getting all the stuff thank you your committee to be taken care of we're now down to the very last detail which is land use permit from the corps we expect to have an answer on that just any day now we've had numerous meetings with them about that that project in itself some were neighborhood eighty five million dollars. And again it's provides all the water for seventy percent of people Baxter County. And we definitely need to build a new intake and the location we've got picked out. The current when the other day we were ushered waters twenty nine three date the date and time. We have center Bozeman upon turned and looked into debt funders twenty nine three to lay that requires us to do a lot of filtering Leding of that water when we go to the other side of the peninsula you get on a deep side will be in river channel now the water depth that there was a hundred fifty they will be able to hear very use levels of anti. We will be out near the expense of playing that water we should never run out and it will give us a brand new facility that's very important to us that we get that done they're Mountain Home so we can continue to provide water not only the seventy percent of people that live in that county that we saw are this for all you people is now home to come up there and and let us make the money we make off of you when you're there There was a gentleman over which one it was this morning thank well first comments are heard is it may not be this group were speaking to David so not this money it might be somewhere else up. I'll close with this is the guys on a white Riverside. Each morning. It's time to fish or cut but. We need to get lose this money out of the field folks we need to go to work and we need to do a lot of product lines important may the people Baxter County just like Biscoe and all over I know there's a lot of people have a lot of needs we're very committed to getting these two projects going and you know we've heard of some of the engineers talk about contractors have been short staffed I've got an opportunity to grow technical training centre will. And that's very important not just of the vote manufactures in Mountain Home but industries all over the need those people coming through the struggle center with that if anyone has any questions glad of that. Our committee any questions. Mr Adams. Senator Flippo you're recognized thank you Mr chairman full disclosure members of Maryland's and I have known each other for a couple decades now and he bears the primary responsibility for me being in the Senate so if you have any grievances with me there's a guy a The Addams I'll ask you we were testimony today and certainly I've heard it over the years the difficulties at some committees have whether raising water rates you were you know sewer rates and sometimes I see availability and other times I see and I say well somebody can pay a hundred thirty dollars a month for cell phone bill but not not an extra eighty cents a month and a water bill I have a hard time buying that I'm three houses outside the city limits. Which actually suits me pretty well so I'm on the septic yeah however I'd like to know what what what not home is dotted with regards to there there's there water sewer rates and are you making and if you done any cost increases to help you know the folks that live there to receiving those services that water yes I have skin in the game yes Sir we what we we were very lucky that that this piece of the puzzle center was solved before I took office we've we've modified it some sense in each and every year or engineering firm does a of a rate study force and that logo or water and sewer rates and we adjust every single year come before the council to not only raise our water and sewer rates for the people in the city of Mountain Home based on CPI numbers but will also raise a wholesale rates to the customer we provide water northeast lakeside Lake View midway and we're back up supply our caller gas so we that's an automatic is gonna happen every single year one of the things that has been taking place for many years as a waterside has supported the server side. I'm glad to say the last year or city council decided not only we would do the C. P. number I want to say it's a five year commitment center I'm not sure to increase at the CPI plus five percent on server side so that what our systems are operating you know in a positive way resident deaths occur with that's automatic every single year. There I was I was gonna say you know what I want to thank you in your and your inner college in the city council back I'm not home I certainly understand that the difficulty that that you know that that lies with the raising a tax or fee and Baxter County it's it's difficult to say the least but governing is never easy and leaders don't take the short cuts and so I want to thank you and your colleagues for making the difficult decisions that I know are not necessarily politically beneficial but are necessary for not only the short term to long term growth and sustainability of Arkansas and that's reason Senator the I think most of us feel like we do what we do based on what we feel right here. You know by may not have a job after the second Tuesday of November but if I don't feel like I've done the right thing for the city of Mountain Home well there's a twenty percent chance you're gonna get my vote. Thank you Mr. Thank you Senator Flippo. Anyone else any questions. Well I think we would all come to agree with that clean drinking water and efficient function and disposal of waste water not only are vitamins to our public health but they're vital to our economic growth. And that's just trying to build it protect. If we're going to do that because anytime interest free movement to stay one of the first thing to ask is not just about the education workforce and one about the water. And we've watched all year long we know what's happening out west would like made the Ogallala aquifer the representative abreast we know what that is and how that's dropped we also know that day is far as I know correct me for my mistakes. Mr Speaker but pine bluff there's a pine bluff draws water from four wells you're on an apple for. And I think that were dropped substantially. So that's a you know a rather large city in the State of Arkansas that could be looking for another source of water pretty soon so. I appreciate you general common. Reshaped everything that That you've contributed this morning is for your expertise in water and wastewater treatment. Of sector more do you have anything to add. Speed. G. gentleman thank you again if there's nothing else. Two nobody else has anything else to say we're German. One.