♪.

TED: COMING UP NEXT ON "ARIZONA HORIZON."

PHOENIX IS PROPOSING A NEARLY 50% RATE HIKE FOR GARBAGE COLLECTION SERVICES OVER THE NEXT THREE YEARS.

>>> ALSO TONIGHT, WE'LL LOOK AT THE RESULTS OF A NEW HIGH-COUNTRY SNOWPACK STUDY.

>>> AND A NEW POST-RETIREMENT PROGRAM HELPS OLDER ADULTS CONTINUE EDUCATION AND TAKE ON GLOBAL ISSUE.

THOSE STORIES AND MORE NEXT ON "ARIZONA HORIZON."

.

TED: GOOD EVENING, AND WELCOME TO "ARIZONA HORIZON."

I'M TED SIMONS.

A BUDGET SHORTFALL IS PROMPTING THE CITY OF PHOENIX TO PROPOSE A 50% SOLID WASTE FEE INCREASE OVER THE NEXT THREE YEARS.

FOR MORE, WE WELCOME LORIZELDA STOELLER, PUBLIC WORKS DIRECTOR FOR THE CITY OF PHOENIX.

THANK YOU FOR JOINING US.

>> THANKS FOR HAVING ME.

TED: WE'LL START WITH THE PHOENIX PUBLIC WORKS DEPARTMENT.

GIVE ME A DEFINITION OF THAT.

>> SURE, THE CITY OF PHOENIX PUBLIC WORKS DEPARTMENT IS RESPONSIBLE FOR PROVIDING COLLECTION OF MUNICIPAL SOLID WASTE SERVICES FOR 125,000 RESIDENCES ACROSS THE CITY OF PHOENIX.

WHAT THAT ENTAILS IS WEEKLY GARBAGE COLLECTION, RECYCLING COLLECTION, UP TO FOUR TIMES BULK TRASH COLLECTION AND MAINTAINING FIVE LANDFILLS ACROSS THE CITY.

WE HAVE AN ACTIVE CITY IN SURPRISE.

CITY OF PHOENIX MAINTAIN TWO TRANSFER FACILITIES, A WASTE FACILITY, ALL PROVIDED THROUGH THE CITY OF PHOENIX FOR RESIDENTS.

TED: IF THERE'S A BIG TRUCK COMING AROUND AND DUMPING IT IN THE BACK OF THE TRUCK, THAT'S YOU GUYS?

>> YES.

TED: YOU GUYS ARE EXPECTING A BUDGET SHORTFALL UPWARDS OF 20, $21 MILLION?

SOMETHING LIKE THAT?

>> YES, AS WE ALL HAVE FELT THESE SIGNIFICANT INFLATIONARY PRESSURES SINCE 2020, THE CITY IS NOT IMMUNE TO THE INFLATIONARY PRESSURES.

SO WE FELT SIGNIFICANT PRESSURES REGARDING OUR STAFF INCREASES, OUR EQUIPMENT INCREASES, AND THEN COST FOR CONSTRUCTION MAINTENANCE JUST TO MAINTAIN OUR INFRASTRUCTURE.

TED: WHEN WAS THE LAST FEE INCREASE FOR SOMETHING LIKE?

>> THE LAST TIME THE CITY OF PHOENIX MADE A RATE ADJUSTMENT WAS 2020.

IT DID INCLUDE A 25% INFLATIONARY INCREASE, IT TOOK EFFECT THIS JANUARY 2026.

TED: OKAY, SO WE GOT $21 MILLION, A SHORTFALL.

YOU MENTIONED STAFFING.

I'VE GOT STAFFING COSTS UP 32%?

>> YES.

TED: HOW DOES INFLATION PLAY INTO THAT?

>> GREAT QUESTION.

WE ARE 626 EMPLOYEES STRONG.

MAKE SURE WE'RE TAKING CARE OF THE CITY'S SOLID WASTE, AND THAT 32% INCREASE IS PRIMARILY RELATED TO COMPAND COST CITY IN 2023, PRIOR TO 2023, OUR WAGES WERE SIGNIFICANTLY BELOW MARKET VALUE.

IN 2021, THE CITY STRUGGLED TO COLLECT BULK TRASH.

BULK TRASH WAS PILING UP ACROSS THE STREETS OF PHOENIX BECAUSE WE COULDN'T HIRE CDL OPERATORS.

WE HAD 75 VACANCIES SO WE COULD NOT ATTRACT AND RETAIN DRIVERS, BUT THANKS TO THAT CLASS AND COMP STUDY, WE WERE ABLE TO ATTRACT AND RETAIN CDL OPERATORS.

TED: VEHICLE COSTS UP 52%.

IS THAT MOSTLY GAS OR MAINTENANCE?

>> THE VEHICLE ITSELF.

A COLLECTION VEHICLE IN 2020 COST $333,000.

THE SAME TRUCK TODAY IS $540,000.

WE HAVE 300 COLLECTION TRUCKS ROLLING AROUND.

THESE ARE MANUFACTURED VEHICLE THAT ARE EXPERIENCING THE INFLATIONARY PRESSURES THAT WE'RE SEEING ACROSS ALL VEHICLE INDUSTRY.

TED: BUT DOES GAS COME INTO PLAY THERE AS WELL?

>> A LITTLE BIT.

WITH THE CITY OF PHOENIX, VEHICLES RUN ON COMPRESSED NATURAL GAS.

THAT'S A FUEL WE HAVE FUELING THE TRUCKS.

>> NOT QUITE AS MUCH AS A HIT AS EVERYTHING ELSE.

SOLID WASTE FEE.

TRASH BINS COST, 30 SOMETHING DOLLARS A MONTH?

>> YEAH, IF YOU ARE A CITY OF PHOENIX RESIDENT, YOU'RE PAYING $37.32 PER MONTH TO GET ALL THE SERVICES.

TED: AND MONTHLY INCREASE OF WHAT, $6 IN THE SUMMER AND 6 BUCKS EVERY SUMMER AFTER THAT FOR A WHILE?

>> YEAH, THE FIRST INCREASE WOULD TAKE EFFECT JULY 2026, A $6 INCREASE AT $37.32.

A YEAR LATER ANOTHER $6 AND FOLLOWED THE THIRD YEAR $5 IN JULY 2029.

TED: YOU HAVE INFLATION HIKES UPWARDS OF 5% EVERY YEAR?

>> YEAH, WE ARE RECOMMENDING LIKE WE DID IN 2022 INFLATIONARY FACTOR TO KEEP PACE WITH THE OPERATIONAL COST THAT WE'RE EXPERIENCING.

WE ARE RECOMMENDING TO INCLUDE AN INFLATIONARY FACTOR OF NO MORE THAN 5%, WHAT THAT WILL DO, IT WILL GIVE US LATITUDE TO LOOK AT WHAT THE INDUSTRY, THE OPERATIONAL COSTS THAT WE'RE FEELING AND MAYBE 1%, 2% TO KEEP UP WITH THE PACE OF OPERATIONAL EXPENSES.

>> WE'RE TALKING NUMBERS HERE.

THIS IS GOING TO AFFECT FOLKS ESPECIALLY ON FIXED INCOMES.

HOW DO YOU WORK WITH THAT?

ARE THERE PROGRAMS TO DEAL WITH THAT?

>> GREAT QUESTION.

WE ARE SENSITIVE TO THIS, WE UNDERSTAND THAT THE IMPACT OF THIS WILL REALLY HIT THE WORKING FAMILIES, FIXED INCOME CUSTOMERS, AND WE HAVE ACTUALLY ARE WORKING CLOSELY WITH HUMAN SERVICES DEPARTMENT, AND THE HUMAN SERVICES DEPARTMENT ADMINISTERS MANY PROGRAMS AVAILABLE TO SUPPORT FAMILIES THAT ARE STRUGGLING TO PAY THEIR MONTHLY CITY SERVICES BILL.

WE HAVE A PROGRAM CALLED PROJECT ASSIST, AND THE SOLID WASTE DEPARTMENT ALONG WITH WATER DEPARTMENT AND WASTE WATER DEPARTMENT CONTRIBUTE TO A FUND OF A MILLION DOLLARS.

SO WE'RE GOING TO DOUBLE OUR CONTRIBUTION, THE SOLID WASTE PORTION TO BRING IT UP TO $1.2 MILLION TO HELP STRUGGLING FAMILIES.

TED: YOU CAN GET A SMALLER BIN TOO, RIGHT?

>> THAT'S A GREAT TIDBIT.

THE STANDARD TRASH CAN IS 90 GALLONS FOR $37.32.

YOU CAN GET A 60 GALLON, A LITTLE SHORTER.

IF YOU CAN AFFORD TO THROW ONE TO TWO BAGS LESS OF TRASH, YOU CAN SAVE $3 A MONTH WITH THE 60 GALLON.

>> THERE YOU GO.

THE REQUEST IS IN.

CITY COUNCIL VOTE IS WHEN?

>> YES, SO WE HAVE PROPOSED A RATE RECOMMENDATION, AND WE ARE GOING TO MAYOR AND COUNCIL APRIL 22nd TO SEEK APPROVAL OF THE RATE RECOMMENDATION.

TED: ANY INDICATION HOW THE VOTE IS GOING TO GO?

>> WE CONDUCTED 11 COMMUNITY MEETINGS ACROSS THE CITY OVER THE LAST MONTH, AND MOST OF OUR RESIDENTS UNDERSTAND THE COST IMPACTS.

WE'VE HAD A LOT OF FEEDBACK OF HERE'S SOME IDEAS THAT WE CAN SAVE FOR FUTURE RATE INCREASES.

I THINK MOST PEOPLE ARE UNDERSTANDING, THEY GET IT.

THEY LIKE SERVICES, THEY WANT TO CONTINUE TO HAVE TRASH SERVICE AND THE IMPORTANCE OF THIS SERVICE.

TED: LORIZELDA STOELLER, CITY OF PHOENIX PUBLIC WORKS DIRECTOR, THANK YOU FOR JOINING US, APPRECIATE IT.

>> THANK YOU.

.

TED: A NEW AIRBORNE SNOWPACK SURVEY OVER PARTS OF ARIZONA'S HIGH COUNTRY SHOWS WARM AND DRY CONDITIONS THIS WINTER LED TO MOST OF THE SNOW WATER MEASURED IN JANUARY AND FEBRUARY MELTED BY MID-MARCH.

JOINING US IS ENRIQUE VIVONI, DIRECTOR OF ASU CENTER FOR HYDROLOGIC INNOVATIONS.

GOOD TO HAVE YOU HERE.

>> THANKS FOR HAVING US.

TED: THIS AIRBORNE SURVEY, WE TALKED ABOUT THIS A WHILE BACK HERE.

HOW WAS IT CONDUCTED AND WHY WAS IT DEEMED NECESSARY AND SOMETHING IMPORTANT FOR ASU AND SRP TO KNOW?

>> SURE, WE'RE MAPPING AN AREA CALLED THE UPPER BLACK RIVER, A WATERSHED THAT PROVIDES STREAM FLOW TO THE SALT RIVER AND WE MANAGE IT AT ROOSEVELT LAKE.

SO IT'S A WATER SUPPLY SOURCE, AND THE SNOW IN THIS REGION IS AN IMPORTANT COMPONENT OF THE WATER SUPPLY COMING INTO THE SRP SYSTEM.

TED: AND WE'RE TALKING A LOT OF SNOW HERE, USUALLY, BECAUSE WE'RE TALKING GREER, HAWLEY LAKE, AREAS THAT ARE ABOUT AS COLD AS CAN YOU GET.

>> COLD AND HIGH.

MT.

BALDY STILL HAS SNOW TODAY.

TED: I'M GLAD SOMETHING STILL HAS SNOW TODAY.

LET'S GET TO THAT, THE DRY AND WARM WINTER APPARENTLY HIT THE ENTIRE STATE AND THAT AREA HARD.

>> NOT ONLY OUR STATE, THE ENTIRE WESTERN U.S.

HAS BEEN WARM AND DRY.

WE HAD A HEAT WAVE IN MARCH HERE IN THE VALLEY AND IN THE NORTHERN COUNTRY, AND THAT HEAT WAVE REALLY GOT TO THE SNOWPACK PRETTY QUICKLY.

TED: AND AS I MENTIONED EARLIER, JANUARY AND FEBRUARY, YOU GOT X, AND BY MID-MARCH IT'S -- >> ALMOST ZERO.

THE X NUMBER IS ABOUT 9,000-ACRE FEET OF WATER, WERE IN THE WATERSHED OF SNOW.

WHAT'S 9,000-ACRE FEET OF WATER, IT CAN SUPPLY 28,000 HOMES FOR A YEAR.

THE SNOW WATER IS IN THE GROUND NOW, MAKING ITS WAY INTO THE RIVER TO BECOME WATER SUPPLY FOR THE VALLEY.

TED: AND YET, IT SOUNDS LIKE IT DROPPED MORE THAN, WHAT, 90% IN A FEW WEEKS?

>> CORRECT.

THAT'S NOT UNPRECEDENTED.

WE ARE IN A PLACE WHERE WE HAVE HEATWAVES IN THE SPRINGTIME.

SNOW MELTS HERE A LOT QUICKER THAN COLORADO OR UTAH.

SO IT'S NOT OUT OF ORDINARY, IT'S VERY SURPRISING THAT IT ESSENTIALLY COLLAPSED IN A MATTER OF A FEW DAYS.

TED: YEAH, AND THE SURVEY ITSELF.

HOW IS THIS.

WE TALKED ABOUT IT EARLIER.

IT'S AN AIRBORNE SURVEY OF SNOW GROUND WATER?

>> SNOW WATER.

TED: SNOW WATER.

>> WE HAVE AN AIRCRAFT THAT HAS TWO SENSORS, ONE IS A LIDAR MEASURING THE SNOW DEPTH AND ONE MEASURES THE SNOW COLOR AND WE INFER FROM THAT, THE AMOUNT OF WATER FROM THE SNOWPACK, AND IT CHANGES WITH TIME.

IN ONE FLIGHT IT HAPPENED TO BE HERE, AND ANOTHER FLIGHT, THE SNOW MELTED HERE, BUT A NEW ACCUMULATION OVER THERE, AND BY THE TIME WE CAME TO MID-MARCH, ONLY MT.

BALDY.

ONLY THE HIGHEST ELEVATIONS STILL HAD SNOW.

TED: AND PROBABLY NORTH AND EAST FACEING?

>> NORTH FACING, CORRECT.

SOUTH FACING MELT EARLIER.

TED: SO SATELLITE IMAGERY, IS THAT USED AS WELL?

A.I., IS THAT USED?

>> YEAH, WE ONLY HAVE THE OPPORTUNITY TO TAKE A FEW OF THE SNOWFLAKES.

WE'RE USING THE DATA TO TRAIN A.I.

ALGORITHMS THAT USE SATELLITES SO WE CAN SEE THAT RIVER BASIN AND ANY OTHER RIVER BASIN IN THE STATE EVERY DAY.

SO THIS IS LIKE A TRAINING DATA SET FOR ALGORITHMS.

>> YEAH, WE SAW PEOPLE MEASURING SNOW.

YOU GET CERTAIN POINTS AND MODEL AFTER THE CERTAIN POINTS AND LET THE MACHINES DO WHAT THEY WILL.

>> THAT'S RIGHT, WE HAVE A HYDROLOGICAL MODEL THAT TAKES THE INFORMATION AND EXTRAPOLATES IT KNOWING TEMPERATURE AND THE AMOUNT OF SNOW WATER IN THE PACK.

TED: AND WITH THAT SNOW WATER MITIGATED AS IT WAS, JUST ABSOLUTELY DECIMATED HERE, HOW BIG A DEAL IS THAT TO SRP'S NETWORK OF RESERVOIRS?

>> LET ME TELL YOU A LITTLE BIT ABOUT SNOW AND THE CONDITIONS THAT HAPPENED IN THE FALL TIME.

WE HAD A SNOWPACK THAT WAS SMALL AND MELTED FAST, BUT WE HAD A VERY WET FALL, WHICH MEANS THAT THIS SNOW AS IT MELTS HAS BEEN VERY EFFICIENT IN PRODUCING WATER.

SO THE UPPER BLACK RIVER IS PRODUCING QUITE A BIT OF WATER, DESPITE HAVING A LOW SNOW AMOUNT THIS YEAR.

TED: SO IN THE FALL, WAS IT SNOWING OR RAINING?

>> IT WAS RAINING.

WE HAD A VERY RAINY FALL HERE IN ARIZONA, AND THAT PRIMED THE WATERSHED, SO THE WATERSHED, BY THE TIME SPRING COMES ALONG, WOULD PRODUCE MORE RUNOFF.

WE WANT TO ATTRACT MORE MOISTURE IN THE FALL.

TED: SOUNDS BAD, BUT IF YOU HAVE A WET FALL.

>> IT COMPENSATES.

TED: EVERYTHING IS NOT SO BAD AS IT SEEMS.

>> CORRECT.

TED: BUT NOT SO GREAT.

>> IT'S NOT SO GREAT.

AND WE MIGHT HAVE YEARS WE DON'T HAVE THE WET FALL WINTER CONDITION, WE MIGHT HAVE YEARS WHEN THE SNOWPACK IS ROBE JUFT HOW DOES IT HELP SRP'S WATER MANAGEMENT?

ESPECIALLY NOW THAT WE'RE HITTING IN THE SUMMER?

>> WE HAVE TO MAKE DECISIONS ABOUT RESERVOIR RELEASES OR RESERVOIR STORAGES AND EFFECT THE GROUND WATER FROM THE WATER THEY PUMP.

WE HAVE A WINDOW OF TIME BETWEEN APRIL AND MAY THAT THE DECISIONS ABOUT RELEASES ARE MADE.

AND THE DATA HELPED MAKE THE DECISION, KNOWING THERE'S LESS SNOW, SOME OF IT COMING INTO THE RESERVOIR SYSTEM.

TED: AS WE MENTIONED, THIS IS RELATIVELY NEW, THIS SURVEY OF SNOW AND SUCH, SNOW WATER.

BEFORE THIS WAS DONE, IT WAS KIND OF GUESS WORK, WASN'T IT?

>> I THINK SRP ALWAYS MONITORED THE WATERSHEDS AT INDIVIDUAL LOCATIONS.

TED: RIGHT.

>> AND WITH THE FIELD CREWS.

THIS GIVES YOU A VIEW OF THE ENTIRE SYSTEM AT ONCE.

>> THE BASINWIDE SNAPSHOT.

>> CORRECT.

TED: IT'S A BIG DEAL.

>> IT'S A BIG DEAL, TELLS YOU HOW SNOW ACCUMULATES AND MELTS.

>> LAST QUESTION.

TED: WHAT DOES ALL THIS MEAN FOR THE VALLEY'S WATER SUPPLY, ESPECIALLY SRP'S WATER?

>> THE VERDE VALLEY SYSTEM HAS MORE RESERVOIR STORAGE, THE SALT SYSTEM HAS LESS STORAGE, THEY'LL PROVIDE THE WATER TO THE RESIDENTS AND INDUSTRIES OF PHOENIX.

TED: I THINK IT IS SO FASCINATING THAT THE RAIN IN THE FALL, WE WERE ALL WORRIED, IT'S NOT SNOW, IT'S NOT SNOW, MAYBE NOT SUCH A BAD THING IT'S NOT SNOW.

GOOD TO HAVE YOU HERE.

THANK YOU FOR JOINING US.

>> THANK YOU VERY MUCH.

.

TED: TONIGHT AS PART OF MONTHLY AARP SPONSORED SEGMENT THAT HIGHLIGHTS ISSUES THAT RELATE TO OLDER ADULTS IN ARIZONA, WE HEAR ABOUT DISTINGUISHED PROGRAM, THAT HELPS ADULTS CONTINUE EDUCATION AND SOLVING REAL WORLD ISSUES.

IT IS PART OF DIFFERENCE ENGINE AND EHSAN ZAFFAR IS THE EXECUTIVE DIRECTOR OF THE DIFFERENCE ENGINE.

WELCOME TO "ARIZONA HORIZON."

>> THANK YOU FOR HAVING ME.

TED: THE DIFFERENCE ENGINE, WHAT EXACTLY IS THAT?

IT'S AT THE O'CONNOR COLLEGE OF LAW?

>> YEAH, I'M A PROFESSOR AT THE LAW SCHOOL HERE, AND WE'RE A MULTIUNIT AT ASU INITIATIVE.

SO ALL THE SCHOOLS WORK WITH US.

WE'RE AT UNIVERSITY AFFAIRS AT ARIZONA STATE BUT WORK WITH ALL THE SCHOOLS INCLUDING THE LAW SCHOOL QUITE CLOSELY, AND WORK WITH THE ENGINEERING SCHOOL, FULTON AND WORK WITH W.P.

CAREY, AND HERBERGER INSTITUTE, AND WHAT WE ARE IS A VENTURE STUDIO THAT INVOLVES STUDENTS, FACULTY, COMMUNITY MEMBERS, AS YOU KNOW, SUPPORTING THE COMMUNITY IS PART OF ASU'S CHARTER, AS WELL AS, YOU KNOW, COMMUNITY LEADERS, ACTIVISTS, NGOs, JOURNALISTS, YOU NAME IT, CIVIL SOCIETY AT LARGE.

WHAT WE DO IS TAKE AN ENTREPRENEURIAL APPROACH TO SOLVING COMMUNITY PROBLEMS.

SO YOU CAN LITIGATE A COMMUNITY PROBLEM, LOBBY, PROTEST, SO ON AND SO FORTH, WHICH IS GREAT.

WHAT IF YOU COULD BUILD A PRODUCT?

BUILD A SERVICE OR PROCESS TO SOLVE THE COMMUNITY PROBLEM.

TED: THAT'S WHERE DISTINGUISHED INNOVATION FELLOWS PROGRAM COMES IN FOR FOLKS IN THE NEXT STAGE OF THEIR LIFE?

THEY'RE RETIRED BUT HAVE SOMETHING TO GIVE, THEY'RE INTERESTED IN GIVEING.

>> THAT'S RIGHT.

AS YOU KNOW, THERE'S FOLKS RETIRING AROUND 60, 65, THAT DOESN'T MEAN YOUR CAREER HAS TEND TO, PASSION HAS TEND TO.

FOR FOLKS WORKING WITH US, THAT'S WHERE THEIR SECOND OR THIRD CAREER BEGINS.

IT'S A YEARLONG FELLOWSHIP AT ARIZONA STATE AT THE DIFFERENCE ENGINE.

WE HAVE LOCATIONS IN LOS ANGELES AND MESA AND TEMPE AND PHOENIX, AND YOU WORK WITH A STRUCTURED PROGRAM WITH FACULTY AND STUDENTS, AND WHATEVER IDEA YOU HAVE.

MAYBE YOU WANT TO CHANGE THE WAY ANIMAL SHELTERS OPERATE OR HELP YOUR ENVIRONMENT OR CHANGE WATER ACCESS, RIPARIAN RIGHTS.

WHATEVER THE IDEA, WE TAKE IT FROM IDEA TO REALITY.

TED: WE TALK ABOUT LAUNCHING A BUSINESS, EXPANDING A HOBBY.

>> ALL OF THE ABOVE.

COULD BE A BUSINESS, COULD A NONPROFIT, THE ONLY REQUIREMENT IS IT HAS TO BE PRACTICAL.

A PRODUCT, A PROCESS OR SERVICE.

IF YOU WANT TO WRITE A PAPER ON SOMETHING, WE HAVE OTHER ASU COLLEAGUES THAT CAN HELP BUT THAT.

IF YOU WANT TO BUILDING SOME, COME TO US.

TED: I NOTICED A FACULTY MEMBER AS YOU MENTIONED, AND ALSO A THOUGHT PARTNER.

WHAT'S THAT?

>> WELL, YOU ARE RIGHT, WE HAVE A SET OF FACULTY MEMBERS THAT TAKE THE FELLOWS TO A DESIGN-THINKING PROCESS, BECAUSE LOTS OF FOLKS HAVE IDEAS, AND WHEREWITHAL AND THE INTELLIGENCE, YOU NAME IT.

SOMETIMES YOU NEED HELP.

THAT'S WHY WE GO COLLEGE.

THINK OF THIS AS A MINI COLLEGE/INCUBATOR OR VENTURE STUDIO FOR FOLKS THAT HAVE BEEN IN A CAREER FOR 20, 30 YEARS, THEY JUST NEED LITTLE THAT BIT OF HELP TO TAKE IT FROM A GREAT IDEA TO A REALITY.

TED: YOU GET FULL ACCESS TO LIBRARIES AND LABS AND FAB FACILITIES.

>> LET ME BREAK IT DOWN QUICKLY WHAT YOU GET.

YOU HAVE 20 FELLOWSHIP SESSIONS, YOU GET TO MEET ALL THE FELLOWS, ACCESS TO ASU RESOURCES, LIBRARY ACCESS TO AFFILIATE CARD TO THE USE OF A.I., A.I.

IS A FUNDAMENTAL PART OF THE STUDY.

ALL STUDENTS TAKE AN A.I.

CLASS.

THEY CAN TAKE UP TO FIVE COURSES AT ANY OTHER SCHOOL AND WORK WITH THE YOUNG STUDENTS, THEY HELP YOU OUT AND HELP YOU BUILD YOUR PROJECT, AND WE HELP YOU PUT A PITCH DECK TOGETHER.

IN MARCH, WE HAVE A MASSIVE PITCH DAY WITH 300 PEOPLE THAT COME IN.

WE'VE HAD INVESTORS VENTURE CAPITALISTS, JOURNALISTS LIKE YOURSELF.

ACADEMICS CUSTOMERS OF THEIR POTENTIAL PRODUCTS AND THEY COME IN.

COMMUNITY MEMBERS WHO THE PRODUCTS WOULD SUPPORT AND HELP.

WE DID IT IN LOS ANGELES.

IT ENDS WITH THE PITCH DAY, PHENOMENAL EVENT.

TED: AND AGAIN, THE IDEA HAS TO BE PRACTICAL, IT ALSO HAS TO ADDRESS REAL WORLD ISSUES, AND LOOKED LIKE THERE WAS A FOCUS TO COMBATING INEQUALITY AS WELL.

>> THAT'S THE WORK OF THE DIFFERENCE ENGINE IS TO COMBAT INEQUALITY.

WE WORK ON THAT BROADLY.

ONE OF OUR FELLOWS WAS NEIL, AN ARCHITECT, HIS IDEA WAS TO -- CITIES AREN'T SUSTAINABLE, IF YOU LOOK AT PHOENIX, HOUSTON, IF YOU LOOK AT L.A., WE BUILD ON THE X AND Y AXIS WEEK BUILD WIDE AND BROAD.

SHOULDN'T WE HAVE A Z AXIS CITY.

WE HELPED HIM PHYSICALLY MODEL A Z AXIS CITY.

WE HAD A CONSULATE COME IN, HE'S A CONSULTANT FOR THEM, HELPING HONG KONG BUILD TALLER.

ONE OTHER QUICK EXAMPLE.

THE FIRST AFRICAN-AMERICAN WOMAN TO GO UP INTO SPACE IN A PRIVATE SPACEFLIGHT WAS ONE OF OUR FELLOWS, DIANE PROCTOR.

SHE HAD A PHENOMENAL SET OF PRODUCTS.

THAT'S THE FOLKS WE'RE LOOKING FOR, BUT ANYBODY CAN APPLY AND APPLICATIONS ARE OPEN.

WE HAVE A COUPLE SPOTS LEFT.

TED: ISN'T IT LIMITED TO TEN PEOPLE, EACH COHORT?

>> YEAH, IT'S VERY SELECTIVE.

WE HAVE A FEW SLOTS LEFT AND HAVE A FEW SCHOLARSHIPS AS WELL.

TED: HOW LONG HAS THIS BEEN AROUND?

>> THIS IS OUR THIRD YEAR.

THIRD CLASS IF ANYBODY WATCHING IS INTERESTED.

TED: AND YOU CONTINUE TO GET PROJECTS OUT TO WHO YOU MENTIONED?

>> YEAH, WE HAD AN ASU FACULTY MEMBER WHO WANTED TO ADDRESS THE PROBLEM OF ARTIFICIAL INTELLIGENCE IN CLASSROOMS.

IF YOU CAN USE A.I., YOU CAN USE A.I.

TO DO YOUR WORK.

HOW DO YOU GET BEYOND THAT?

>> SHE HAD A VERY INNOVATIVE IDEA, WE ARE NUMBER ONE IN INNOVATION.

TED: THAT'S WHAT I HEARD.

THIS IS NOT A FREE WALK IN THE PARK, THERE'S DIVISION INVOLVED HERE?

>> THAT'S RIGHT.

THE ACTUAL COST OF THE PROGRAM IS QUITE EXPENSIVE BUT IT IS SUBSIDIZED BY A GENTLEMAN NAMED BOB POZEN, PRESIDENT OF FIDELITY INVESTMENTS, YOUR 401(k) MAY BE THERE.

HE SUBSIDIZES THE BULK OF THE COST AND WE HAVE SCHOLARSHIPS AS WELL.

IT'S A PROGRAM YOU HAVE TO PAY INTO.

THE DIFFERENCE ENGINE AND E-MAIL US AT TDE, THE DIFFERENCE ENGINE@ASU.

TED: GOOD TO HAVE YOU HERE.

>> FANTASTIC.

THANKS FOR HAVING ME.

TED: YOU BET.

THAT'S IT FOR NOW.

I'M TED SIMONS.

THANK YOU SO MUCH FOR JOINING US.

YOU HAVE A GREAT EVENING.