Barry K. King

Key discussions during the meeting included the Finance Report, which detailed positive year-end financial metrics, including debt service coverage ratios exceeding stated metrics, and high receipts relative to the budget. The Engineering Report highlighted 2025 achievements such as significant water main and lead service line replacements, and the completion of major vertical projects like the Highland Reservoir Pump Station. Ongoing project updates covered the 2023 Large Diameter Sewer Rehabilitation Project, potential asset transfer discussions with ALCOSAN, and plans for the 2024 Large Diameter Sewer Rehabilitation Project in Frick Park. The Chief Operations & Environmental Compliance Officer's report detailed environmental compliance activities, including numerous inspections and waste diversion efforts, and an operational issue involving frazil ice restricting the river intake. The CEO's report recognized staff excellence awards and summarized year-end achievements, including record low lead levels in drinking water, progress on lead service line replacements, substantial PENNVEST funding secured, and workforce development initiatives. Resolutions adopted included approvals for multiple contracts with Independent Enterprises, Inc., an amendment for engineering services on the Four Mile Run Stormwater Improvements Project, and authorization for the condemnation/purchase of a property related to the Brereton Landslide Remediation Project.

The meeting commenced with the 2026 Annual Board Meeting, immediately proceeding to the election of officers, which resulted in the unanimous approval of the chairperson, vice chairperson, secretary treasurer, and assistant secretary treasurer for one-year terms. Public comments focused heavily on contractor oversight in residential and flood-prone areas, specifically concerning unresolved zoning and permit issues, excessive traffic, and noise, urging the board to adopt proactive monitoring standards. The finance report noted that January receipts were $1.8 million lower than budgeted, partially due to weather-related mailing delays. Significant positive financial updates included the PUC's approval of the rate case, effective March 8, 2026, which expands customer assistance programs and makes the line repair pilot program permanent, and the introduction of a transparent Penvest charge. Additionally, the authority received credit rating outlook upgrades from stable to positive from Moody's and S&P Global Ratings due to improved financial performance and successful capital project delivery. The board also capitalized on strong investor demand to upsize a recent bond sale, achieving favorable pricing without insurance for what may be the first time in the organization's history. Finally, a condensed budget summary was launched on the website for increased transparency.

The meeting began with the board meeting in executive session to receive updates on ongoing projects. Key discussions during the regular session included a review of the finance report as of December 31, 2025, which indicated receipts exceeding budget and debt service coverage ratios exceeding stated financial metrics. The engineering and construction department presented extensive accomplishments for 2025, including the installation of over 37,000 feet of water main, replacement of over 2,600 service lines (including lead service lines), and substantial completion of the Highland Reservoir pump station. Progress was detailed on the Alka-San regionalization transfer discussions, focusing on criteria for asset transfer (intermunicipal flow and pipe diameter of 10 inches or greater). A resolution regarding the 2023 large diameter sewer rehabilitation project, specifically involving structural repairs to a missing invert in the arch sewer in the Sheridan and Esplain neighborhoods, was planned for later in the meeting. The board also received a follow-up update on slide locations at the Highland 2 reservoir and an overview of the 2024 large diameter sewer rehabilitation project in Frick Park, confirming minimal impact due to in-pipe bypass pumping and use of an existing access road. Additionally, upcoming bid deadlines for 2026 contracts were noted, and the Highland Reservoir pump station project received the 2025 Civil Engineering Award of Merit from the ASCE Pittsburgh chapter.

The meeting commenced with the board meeting in executive session to discuss personnel and legal matters, without taking any votes. Key discussions during the regular session involved reports from various departments. The Finance Department reported strong year-to-date receipts, up 17.7% (approximately $9.2 million), attributed to a rate increase and the collection of the new stormwater fee. Capital expense planning for 2023 through 2027 was initiated. The Engineering Department provided updates on drinking water programs, noting significant progress on lead service line replacements across multiple projects (Priority, Neighborhood, Urgent, and the 2021 Small Diameter Water Main Replacement Project). Construction progress was also reported for the BRT project water line replacement and various Water Reliability Plan projects. The Sewer Programs reported that 2021 Small Diameter Sewer Rehabilitation/Replacement contracts were underway, and construction began on the 2020 Small Diameter Sewer Reconstruction Contract II, including work on Fuchsia Way. The Environmental Compliance and Ethics Officer reported on the agency's response to a train derailment five miles upstream from the Aspinwall Water Treatment Plant, confirming no contamination was detected. The department also reported completing staffing for the Environmental Compliance department and the commencement of CCTV inspection and mapping for stormwater systems in city parks. A recommendation for approval of the Environmental Management Information System software platform was highlighted. The Chief Executive Officer's report detailed the commencement of the Fuchsia Way sewer reconstruction, which involves coordination with water main and lead service line replacement work, emphasizing engagement with residents. The report also highlighted the 2021 Supplier Diversity Program Annual Report, noting $31.5 million spent with MWDBE vendors, representing 18% of the total spend. Additionally, positive media coverage regarding the Water Reliability Plan and the lead service line replacement program was noted. Finally, employee excellence awards were presented to Rebecca Copney for her role in the PGH2O Cares program, Zachary Larimer for enhancing PUC compliance analysis, and Juan Irmas for coordinating the e-Builder project management system.

This Capital Improvement Plan outlines the strategic direction for Pittsburgh Water from 2026 to 2030. The plan is built upon three core strategic priority areas: Organizational Capacity, Trust, and Infrastructure Investment. Key initiatives include optimizing organizational capacity through best practices and technology, building public trust through enhanced communication and customer experience, and investing in infrastructure, preventative maintenance, and innovative technology to ensure high-quality water, sewer, and stormwater services for future generations. The overall objective is to deliver safe, reliable water services, address essential operational needs, and support continued capital investments to modernize the system.