1
00:00:00,000 --> 00:00:08,700
 Okay, it's 901 and we do have a quorum, so we're called to order the Public Utilities

2
00:00:08,700 --> 00:00:12,760
 Board for the City of Denton for Monday, July 26th, 2021.

3
00:00:12,760 --> 00:00:17,280
 Lee, can you hear us?

4
00:00:17,280 --> 00:00:18,280
 You're muted, Lee.

5
00:00:18,280 --> 00:00:19,280
 Yes, ma'am.

6
00:00:19,280 --> 00:00:20,280
 Okay.

7
00:00:20,280 --> 00:00:21,280
 Good morning.

8
00:00:21,280 --> 00:00:22,280
 Okay, great.

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00:00:22,280 --> 00:00:24,440
 The first item is public comment period.

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00:00:24,440 --> 00:00:28,120
 Does anybody present wish to speak?

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00:00:28,120 --> 00:00:30,720
 Is there anybody on the line that wishes to speak?

12
00:00:30,720 --> 00:00:32,320
 No, Chair.

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00:00:32,320 --> 00:00:34,200
 There are no virtual public comments.

14
00:00:34,200 --> 00:00:35,200
 Okay.

15
00:00:35,200 --> 00:00:36,200
 Thank you.

16
00:00:36,200 --> 00:00:38,060
 So then the first item is consent agenda.

17
00:00:38,060 --> 00:00:43,400
 Does a board member wish to pull either item A or B from the agenda?

18
00:00:43,400 --> 00:00:49,280
 Okay, seeing none, do we have a motion to approve consent agenda?

19
00:00:49,280 --> 00:00:52,360
 So moved.

20
00:00:52,360 --> 00:00:53,360
 Barbara moved.

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00:00:53,360 --> 00:00:54,360
 Okay, and Karen seconded.

22
00:00:54,360 --> 00:00:55,360
 All in favor say aye.

23
00:00:55,360 --> 00:00:56,360
 Aye.

24
00:00:56,360 --> 00:00:57,360
 Aye.

25
00:00:57,360 --> 00:00:59,600
 Okay, that carries.

26
00:00:59,600 --> 00:01:05,280
 Next item is consider approval of the July 12th, 2021 minutes.

27
00:01:05,280 --> 00:01:07,320
 Were there any changes or corrections?

28
00:01:07,320 --> 00:01:12,280
 Okay, do we have a motion?

29
00:01:12,280 --> 00:01:13,840
 Move approval.

30
00:01:13,840 --> 00:01:15,320
 Billy's moving approval.

31
00:01:15,320 --> 00:01:16,320
 Second?

32
00:01:16,320 --> 00:01:17,320
 Second.

33
00:01:17,320 --> 00:01:18,320
 That in seconds.

34
00:01:18,320 --> 00:01:19,320
 All in favor say aye.

35
00:01:19,320 --> 00:01:20,320
 Aye.

36
00:01:20,320 --> 00:01:21,320
 Aye.

37
00:01:21,320 --> 00:01:22,320
 Aye.

38
00:01:22,320 --> 00:01:23,320
 Abstain.

39
00:01:23,320 --> 00:01:24,320
 I was absent.

40
00:01:24,320 --> 00:01:25,320
 Okay.

41
00:01:25,320 --> 00:01:26,320
 Thank you, Karen.

42
00:01:26,320 --> 00:01:32,500
 I'm recommending the approval of the water fiscal year 2021-2022 operating in capital

43
00:01:32,500 --> 00:01:37,320
 budget.

44
00:01:37,320 --> 00:01:40,560
 Good morning, Chair, PB members, Nick Vinson, Assistant Director of Finance.

45
00:01:40,560 --> 00:01:44,600
 Happy to be in front of you again today to talk about the rates and the budgets.

46
00:01:44,600 --> 00:01:46,640
 I do have a presentation if someone has questions.

47
00:01:46,640 --> 00:01:50,960
 Otherwise, we're just looking for approval, Chair.

48
00:01:50,960 --> 00:01:51,960
 Questions?

49
00:01:51,960 --> 00:01:56,560
 All right, do we have a motion to approve?

50
00:01:56,560 --> 00:01:58,760
 Oh, Devin has a question.

51
00:01:58,760 --> 00:01:59,760
 Sorry.

52
00:01:59,760 --> 00:02:00,760
 Thank you.

53
00:02:00,760 --> 00:02:01,760
 Yes, sir.

54
00:02:01,760 --> 00:02:06,080
 So I was noticing that the minimum rates, the minimum revenues are going up by about

55
00:02:06,080 --> 00:02:10,200
 10%, but the volume metric are going up by 6% or 7%.

56
00:02:10,200 --> 00:02:17,080
 Is that, I was trying to understand how, is volume decreasing, like is conservation increasing

57
00:02:17,080 --> 00:02:19,720
 or new users using less water?

58
00:02:19,720 --> 00:02:22,000
 So that's a great question.

59
00:02:22,000 --> 00:02:25,420
 Volume usage is continuing to increase in the city with growth.

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00:02:25,420 --> 00:02:29,960
 One thing we've been continuing to see and we're actually talking about in the rate presentation

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00:02:29,960 --> 00:02:34,440
 is that the average consumption for residential customers actually decreased over the years.

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00:02:34,440 --> 00:02:37,680
 So it used to be 9,200 gallons, now it's 7,600 gallons.

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00:02:37,680 --> 00:02:41,280
 And we'll talk a little bit about that in the rate presentation during the work session

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00:02:41,280 --> 00:02:42,280
 presentation.

65
00:02:42,280 --> 00:02:43,280
 Okay.

66
00:02:43,280 --> 00:02:46,880
 Thank you.

67
00:02:46,880 --> 00:02:47,880
 Other questions?

68
00:02:47,880 --> 00:02:50,520
 Do we have a motion to approve?

69
00:02:50,520 --> 00:02:51,520
 So moved.

70
00:02:51,520 --> 00:02:52,520
 And a second?

71
00:02:52,520 --> 00:02:53,520
 Second.

72
00:02:53,520 --> 00:02:54,520
 All in favor, say aye.

73
00:02:54,520 --> 00:02:55,520
 Aye.

74
00:02:55,520 --> 00:02:56,520
 Aye.

75
00:02:56,520 --> 00:02:57,520
 Okay.

76
00:02:57,520 --> 00:03:01,560
 That one carries.

77
00:03:01,560 --> 00:03:06,240
 Consider recommending the approval of the wastewater fiscal year 2021-2022 operating

78
00:03:06,240 --> 00:03:09,880
 and capital budget.

79
00:03:09,880 --> 00:03:10,880
 Same deal.

80
00:03:10,880 --> 00:03:11,880
 Are there any questions?

81
00:03:11,880 --> 00:03:14,600
 If you have any questions, I'd be happy to answer them.

82
00:03:14,600 --> 00:03:15,600
 Questions of anyone?

83
00:03:15,600 --> 00:03:16,600
 Okay.

84
00:03:16,600 --> 00:03:18,720
 Do we have a motion to approve?

85
00:03:18,720 --> 00:03:20,880
 Move approval.

86
00:03:20,880 --> 00:03:21,880
 Thank you, Barbara.

87
00:03:21,880 --> 00:03:22,880
 And a second?

88
00:03:22,880 --> 00:03:23,880
 Second.

89
00:03:23,880 --> 00:03:24,880
 Ben seconds.

90
00:03:24,880 --> 00:03:25,880
 All in favor say aye.

91
00:03:25,880 --> 00:03:26,880
 Aye.

92
00:03:26,880 --> 00:03:27,880
 Aye.

93
00:03:27,880 --> 00:03:28,880
 Aye.

94
00:03:28,880 --> 00:03:29,880
 No nays.

95
00:03:29,880 --> 00:03:30,880
 That one carries.

96
00:03:30,880 --> 00:03:35,600
 Consider recommending the approval of the solid waste fiscal year 2021-2022 operating and

97
00:03:35,600 --> 00:03:37,520
 capital budgets.

98
00:03:37,520 --> 00:03:38,520
 Same thing.

99
00:03:38,520 --> 00:03:40,760
 Any questions?

100
00:03:40,760 --> 00:03:44,120
 Do we have a motion to approve?

101
00:03:44,120 --> 00:03:45,120
 So moved.

102
00:03:45,120 --> 00:03:46,120
 So moved.

103
00:03:46,120 --> 00:03:47,120
 That one carries.

104
00:03:47,120 --> 00:03:48,120
 Devin seconds.

105
00:03:48,120 --> 00:03:49,120
 How's that?

106
00:03:49,120 --> 00:03:50,120
 All in favor say aye.

107
00:03:50,120 --> 00:03:51,120
 Aye.

108
00:03:51,120 --> 00:03:52,120
 Aye.

109
00:03:52,120 --> 00:03:53,120
 Motion carries.

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00:03:53,120 --> 00:03:58,400
 Consider recommending the approval of the electric fund fiscal year 2021-2022 operating

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00:03:58,400 --> 00:04:00,160
 and capital budgets.

112
00:04:00,160 --> 00:04:02,200
 Any questions?

113
00:04:02,200 --> 00:04:03,880
 All right.

114
00:04:03,880 --> 00:04:05,760
 Seeing none, do we have a motion to approve?

115
00:04:05,760 --> 00:04:07,320
 I'll move approval.

116
00:04:07,320 --> 00:04:08,320
 Thank you, Billy.

117
00:04:08,320 --> 00:04:09,320
 And a second?

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00:04:09,320 --> 00:04:10,320
 Second.

119
00:04:10,320 --> 00:04:12,440
 Was that you, Ben?

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00:04:12,440 --> 00:04:13,440
 Lee.

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00:04:13,440 --> 00:04:14,440
 Okay.

122
00:04:14,440 --> 00:04:15,440
 Thank you, Lee.

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00:04:15,440 --> 00:04:16,440
 All in favor say aye.

124
00:04:16,440 --> 00:04:17,440
 Aye.

125
00:04:17,440 --> 00:04:18,440
 Aye.

126
00:04:18,440 --> 00:04:19,440
 Aye.

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00:04:19,440 --> 00:04:20,760
 That one carries.

128
00:04:20,760 --> 00:04:27,800
 Consider recommending the approval of the customer service fiscal year 2021-2022 operating budget.

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00:04:27,800 --> 00:04:29,280
 Any questions?

130
00:04:29,280 --> 00:04:31,000
 I had a quick question.

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00:04:31,000 --> 00:04:36,520
 I was noticing -- let me see what page it is.

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00:04:36,520 --> 00:04:41,080
 There was revenue going from zero to like 200,000 in subsequent years.

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00:04:41,080 --> 00:04:42,080
 It was called Other.

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00:04:42,080 --> 00:04:44,360
 I was wondering what the Other covered.

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00:04:44,360 --> 00:04:47,480
 Let me pull the presentation up really quick and we can see.

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00:04:47,480 --> 00:04:53,320
 It's the first page of the presentation, bottom line.

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00:04:53,320 --> 00:04:56,280
 I'm sure you've already told us, but I've slept since then.

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00:04:56,280 --> 00:04:57,280
 That's okay.

139
00:04:57,280 --> 00:05:02,280
 Let me look here and see.

140
00:05:02,280 --> 00:05:04,420
 Should be sharing.

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00:05:04,420 --> 00:05:11,040
 Just on the highlights page.

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00:05:11,040 --> 00:05:15,360
 I would have to look -- this may be some late fees and some different things within customer

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00:05:15,360 --> 00:05:18,120
 service, but I can get you an answer to that.

144
00:05:18,120 --> 00:05:19,120
 I don't have that answer right now.

145
00:05:19,120 --> 00:05:21,480
 I don't know exactly what exactly that revenue is.

146
00:05:21,480 --> 00:05:22,480
 Okay.

147
00:05:22,480 --> 00:05:24,680
 And it goes up every year, so there's something.

148
00:05:24,680 --> 00:05:25,680
 We definitely can get you an answer to that.

149
00:05:25,680 --> 00:05:26,680
 Something going on on that.

150
00:05:26,680 --> 00:05:27,680
 Thanks, Nick.

151
00:05:27,680 --> 00:05:29,640
 And I know Mr. Ryback had a question, too.

152
00:05:29,640 --> 00:05:31,640
 Go ahead, Lee.

153
00:05:31,640 --> 00:05:35,040
 Yes, thank you.

154
00:05:35,040 --> 00:05:42,200
 I do not recall, unfortunately, covering the customer service department budget previously,

155
00:05:42,200 --> 00:05:46,160
 and I'll take responsibility for that.

156
00:05:46,160 --> 00:05:51,160
 So the customer service budget is drawn from the budgets of the Other departments.

157
00:05:51,160 --> 00:05:55,600
 Is that a correct assumption?

158
00:05:55,600 --> 00:05:59,720
 Mr. Ryback, if I heard your question correctly, how is the customer service budget funded?

159
00:05:59,720 --> 00:06:00,720
 Was that your question?

160
00:06:00,720 --> 00:06:01,720
 Okay.

161
00:06:01,720 --> 00:06:02,720
 I will.

162
00:06:02,720 --> 00:06:08,560
 So great question, and I don't know if I've mentioned this in our previous presentation

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00:06:08,560 --> 00:06:09,560
 or not.

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00:06:09,560 --> 00:06:13,560
 For the PB members that are new, customer service used to be part of the water utility.

165
00:06:13,560 --> 00:06:17,960
 Two or three years ago, we actually got direction to separate this fund for transparency.

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00:06:17,960 --> 00:06:21,560
 Since then, we've continued to bring the customer service fund back to the public utilities

167
00:06:21,560 --> 00:06:23,380
 board separately.

168
00:06:23,380 --> 00:06:27,600
 So you do see that presentation in addition to the utilities, and another reason is mainly

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00:06:27,600 --> 00:06:29,720
 is because the utilities fund that department.

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00:06:29,720 --> 00:06:33,160
 You know, 90% of the budget of customer service is made up from the utilities.

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00:06:33,160 --> 00:06:38,160
 Does that answer your question, Mr. Ryback?

172
00:06:38,160 --> 00:06:41,320
 And this one was presented at the last board meeting.

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00:06:41,320 --> 00:06:43,320
 It does in a way, yes.

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00:06:43,320 --> 00:06:49,920
 And this one was presented at the last board meeting when you were on vacation, so you

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00:06:49,920 --> 00:06:50,920
 didn't forget it.

176
00:06:50,920 --> 00:07:04,040
 Okay, well, that being the case, all of these dollar notes I see are basically drawn from

177
00:07:04,040 --> 00:07:07,320
 the various departments and their budgets.

178
00:07:07,320 --> 00:07:13,200
 So the customer service entails the cost of handling billings that is entailed the cost

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 of answering the phone.

180
00:07:14,200 --> 00:07:18,480
 Could you give me a quick thumbnail sketch of that?

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00:07:18,480 --> 00:07:19,800
 Yeah, absolutely.

182
00:07:19,800 --> 00:07:21,500
 So customer service, you're exactly correct.

183
00:07:21,500 --> 00:07:25,800
 So customer service receives the calls for the city.

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00:07:25,800 --> 00:07:30,600
 As far as a detailed operation definition of what all they do is they do a lot of things

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00:07:30,600 --> 00:07:32,320
 and a tremendous job.

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00:07:32,320 --> 00:07:34,920
 Krista Foster, the customer service manager is on the phone.

187
00:07:34,920 --> 00:07:39,320
 Krista, are you on the phone to answer Mr. Ryback's question?

188
00:07:39,320 --> 00:07:40,320
 I am.

189
00:07:40,320 --> 00:07:44,320
 And so let me make sure that I'm understanding what we're wanting.

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00:07:44,320 --> 00:07:50,100
 We're wanting to understand what customer service does in relation to the utilities.

191
00:07:50,100 --> 00:07:53,680
 Okay.

192
00:07:53,680 --> 00:07:58,660
 So the customer service department is made up of three key areas.

193
00:07:58,660 --> 00:08:02,920
 One of them is the utility customer service, which is the call center, the front lobby

194
00:08:02,920 --> 00:08:08,880
 and our cash operations window where we deal with some of the receipt of payments.

195
00:08:08,880 --> 00:08:16,040
 We also have our collections division that deals with ensuring revenue balances are accurate

196
00:08:16,040 --> 00:08:20,620
 that deals with making sure that we're bringing revenues back in a timely manner.

197
00:08:20,620 --> 00:08:24,900
 And then we also have our billing department, which produces the monthly bills for each

198
00:08:24,900 --> 00:08:29,220
 of the billed utilities, as well as for many of the miscellaneous bills that are sent for

199
00:08:29,220 --> 00:08:31,780
 other parts of the city.

200
00:08:31,780 --> 00:08:37,200
 So we help with everything from bill production to bill collection to assisting people in

201
00:08:37,200 --> 00:08:42,440
 understanding what is on their bill, assisting people with understanding how to maybe potentially

202
00:08:42,440 --> 00:08:48,000
 identify leaks and things like that, setting up pay arrangements, taking payments and doing

203
00:08:48,000 --> 00:08:50,560
 service starts and stops.

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00:08:50,560 --> 00:08:57,040
 And then we also take all of the mainline phone calls for city hall.

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00:08:57,040 --> 00:09:00,700
 So if someone just has a general question, those come into us as well.

206
00:09:00,700 --> 00:09:05,760
 And then as we expand in the future, we will be expanding that to be a full 311 where we

207
00:09:05,760 --> 00:09:08,240
 start bringing in other divisions.

208
00:09:08,240 --> 00:09:12,700
 Does that answer the question that you have?

209
00:09:12,700 --> 00:09:13,700
 Yes, ma'am.

210
00:09:13,700 --> 00:09:18,640
 It's answering the phone and it's also collections and billing.

211
00:09:18,640 --> 00:09:23,400
 So that would fall under the gathering the revenue for the departments.

212
00:09:23,400 --> 00:09:24,400
 Correct.

213
00:09:24,400 --> 00:09:28,040
 That is all part of customer service.

214
00:09:28,040 --> 00:09:33,360
 You're so very welcome.

215
00:09:33,360 --> 00:09:34,360
 Other questions?

216
00:09:34,360 --> 00:09:35,360
 That's all I have, Madam Chairman.

217
00:09:35,360 --> 00:09:36,360
 Thank you, ma'am.

218
00:09:36,360 --> 00:09:37,360
 Thank you.

219
00:09:37,360 --> 00:09:38,360
 Okay.

220
00:09:38,360 --> 00:09:39,360
 Do we have a motion to approve?

221
00:09:39,360 --> 00:09:40,360
 So moved.

222
00:09:40,360 --> 00:09:41,360
 Second.

223
00:09:41,360 --> 00:09:45,080
 Thank you, Lise.

224
00:09:45,080 --> 00:09:46,080
 And Barbara seconded.

225
00:09:46,080 --> 00:09:47,500
 All in favor say aye.

226
00:09:47,500 --> 00:09:48,500
 Aye.

227
00:09:48,500 --> 00:09:49,500
 Aye.

228
00:09:49,500 --> 00:09:50,500
 Opposed?

229
00:09:50,500 --> 00:09:52,100
 That one carries.

230
00:09:52,100 --> 00:09:53,640
 Management reports.

231
00:09:53,640 --> 00:10:02,280
 Madam Chair, members of the PUB, so just our standard future agenda items that we have

232
00:10:02,280 --> 00:10:07,400
 here for you, obviously today you're considering the budget, we'll be bringing back some additional

233
00:10:07,400 --> 00:10:11,560
 information on the budget, certainly the rates you'll be discussing today.

234
00:10:11,560 --> 00:10:14,840
 The only item that you don't have for rates is on the electric rates.

235
00:10:14,840 --> 00:10:20,160
 We are working on that and we'll be bringing that back to you here very soon.

236
00:10:20,160 --> 00:10:26,360
 Also on the schedule for September 13th is a draft of kind of the much awaited comprehensive

237
00:10:26,360 --> 00:10:29,000
 solid waste management strategy.

238
00:10:29,000 --> 00:10:34,080
 That's something that you've had on your table for quite some time and solid waste

239
00:10:34,080 --> 00:10:37,920
 is ready to bring that back to you.

240
00:10:37,920 --> 00:10:43,320
 And then for our new business action items, we still have the two items on here that we're

241
00:10:43,320 --> 00:10:47,760
 certainly still working on and I just want to make sure that you know that we've not

242
00:10:47,760 --> 00:10:51,560
 forgotten and I'll let Mr. Ettsonoff know that I've not forgotten about him.

243
00:10:51,560 --> 00:10:55,200
 I did get an email from him this weekend and told him that we are working on getting him

244
00:10:55,200 --> 00:10:56,200
 that data.

245
00:10:56,200 --> 00:11:00,440
 Obviously, this legislative update is still kind of on hold.

246
00:11:00,440 --> 00:11:04,400
 We are working on potentially an informal staff report that we're going to send to

247
00:11:04,400 --> 00:11:05,400
 the council.

248
00:11:05,400 --> 00:11:09,400
 If we do that, we'll send it also to the PUB, but as you know, the special session

249
00:11:09,400 --> 00:11:12,400
 that the governor called is kind of on hold right now.

250
00:11:12,400 --> 00:11:18,000
 There may be another and so we still have that on here and we'll be providing that

251
00:11:18,000 --> 00:11:20,720
 to you as quickly as we can.

252
00:11:20,720 --> 00:11:26,180
 So with that, I'm happy to answer any questions on this or other new business items that you

253
00:11:26,180 --> 00:11:27,180
 may have.

254
00:11:27,180 --> 00:11:28,180
 Any questions?

255
00:11:28,180 --> 00:11:29,320
 Or new items?

256
00:11:29,320 --> 00:11:30,320
 No?

257
00:11:30,320 --> 00:11:34,840
 All right, then we go into concluding items.

258
00:11:34,840 --> 00:11:39,320
 This is the opportunity to have anything added to the agenda or take time to thank staff

259
00:11:39,320 --> 00:11:41,280
 for any other announcements.

260
00:11:41,280 --> 00:11:43,160
 Any concluding items?

261
00:11:43,160 --> 00:11:48,160
 All right, then we'll go into the work session.

262
00:11:48,160 --> 00:11:52,280
 Receive a report and hold a discussion and give staff direct direction on the proposed

263
00:11:52,280 --> 00:11:57,880
 water, wastewater, and solid waste rates for fiscal year 2021 and 2022.

264
00:11:57,880 --> 00:12:01,040
 Good morning again, Nick Benson, Assistant Director of Finance.

265
00:12:01,040 --> 00:12:03,320
 Let me get the presentation pulled up really quick.

266
00:12:03,320 --> 00:12:10,800
 See if I can talk a little bit more into the mic here where you can hear me.

267
00:12:10,800 --> 00:12:18,960
 Okay, so before we get started and kick it off, so we're going to talk about the water

268
00:12:18,960 --> 00:12:20,600
 rates today and solid waste.

269
00:12:20,600 --> 00:12:23,080
 We'll actually talk a little bit about wastewater.

270
00:12:23,080 --> 00:12:25,800
 We have one slide to cover the wastewater rate changes.

271
00:12:25,800 --> 00:12:29,160
 As Tony had mentioned, electric will not be discussed today.

272
00:12:29,160 --> 00:12:32,840
 Those rate conversations will come back forward to you later this year once we get through

273
00:12:32,840 --> 00:12:36,800
 the summer months and really understand how we're going to perform this summer and what

274
00:12:36,800 --> 00:12:40,520
 those rate changes Winter Storm URI did to the utility.

275
00:12:40,520 --> 00:12:45,160
 So talk a little bit about that more this year.

276
00:12:45,160 --> 00:12:48,080
 Before we get started, I just want to talk about some basic terms within the water rate

277
00:12:48,080 --> 00:12:51,040
 structure that you'll see throughout the presentation.

278
00:12:51,040 --> 00:12:54,920
 The first one being a facility charge, and this is a fixed charge charged to customers

279
00:12:54,920 --> 00:12:56,260
 every single month.

280
00:12:56,260 --> 00:13:00,140
 This is based on a meter size, so the majority of residential customers have a three quarter

281
00:13:00,140 --> 00:13:01,140
 inch meter.

282
00:13:01,140 --> 00:13:04,920
 We'll talk a little bit more about that here in a coming couple slides.

283
00:13:04,920 --> 00:13:08,260
 The volume charge is a monthly rate charge to customers based on the volume that they

284
00:13:08,260 --> 00:13:12,600
 use each month, and that will be the focus of today's conversation as we talk about the

285
00:13:12,600 --> 00:13:16,740
 water rate structure and what guidance you want to give us moving forward with that rate

286
00:13:16,740 --> 00:13:18,400
 structure itself.

287
00:13:18,400 --> 00:13:24,160
 A couple other terms, I won't read all of these, but you have WR, WW, WRW, and WCL,

288
00:13:24,160 --> 00:13:29,380
 which is the wholesale raw water pass through rate.

289
00:13:29,380 --> 00:13:32,360
 So cost of service history, I think some of the PV members are here.

290
00:13:32,360 --> 00:13:33,680
 We went through the cost of service results.

291
00:13:33,680 --> 00:13:38,600
 If not, I'll give you a brief summary of the recent cost of service study that we completed.

292
00:13:38,600 --> 00:13:39,600
 I'll say recent.

293
00:13:39,600 --> 00:13:44,040
 It's been about two years ago, a year and a half ago now, so definitely excited to have

294
00:13:44,040 --> 00:13:45,040
 that study.

295
00:13:45,040 --> 00:13:48,220
 There's a lot of tool internally in the finance department and the water utility.

296
00:13:48,220 --> 00:13:52,680
 So the last study was completed in 2014 prior to the one we just updated.

297
00:13:52,680 --> 00:13:56,440
 The one we just updated we contracted with Raftelis in 2019.

298
00:13:56,440 --> 00:13:58,960
 That study was officially finalized last fall.

299
00:13:58,960 --> 00:14:03,880
 I got a draft of the cost of service report a week or two ago, so we'll get that forward

300
00:14:03,880 --> 00:14:08,560
 to the PV and city council, the detail report, detail on all that cost of service results.

301
00:14:08,560 --> 00:14:11,600
 So that will be coming for the near future.

302
00:14:11,600 --> 00:14:14,720
 These studies are updated approximately over five years, so looking to update that study

303
00:14:14,720 --> 00:14:21,800
 again in 2024 or 2025, and then goals, you know, the cost of service goals is to establish

304
00:14:21,800 --> 00:14:25,520
 cost of service based rates, understand what those are, and to communicate them to the

305
00:14:25,520 --> 00:14:31,160
 governing bodies, ensure revenue stability, and then establish fair and equitable rates.

306
00:14:31,160 --> 00:14:33,920
 And of course, this little diagram on your right here talks about how it breaks down

307
00:14:33,920 --> 00:14:38,960
 water and sewer, looking at the cost of service model.

308
00:14:38,960 --> 00:14:41,980
 So this is a really high-level summary of that report I mentioned earlier.

309
00:14:41,980 --> 00:14:48,120
 This is what each service category is classified into within the water utility, so we break

310
00:14:48,120 --> 00:14:53,160
 it out by residential, commercial, irrigation, fire hydrant, and then you can see total retail,

311
00:14:53,160 --> 00:14:55,300
 and then of course wholesale at the bottom.

312
00:14:55,300 --> 00:14:57,960
 What I want to point out to the Public Utility Board is that residential is currently under

313
00:14:57,960 --> 00:15:03,560
 recovery about 6 percent, commercial is over recovering about 26.2 percent, irrigation

314
00:15:03,560 --> 00:15:09,720
 is under about 23.5, and then fire hydrant is about 6.1 under percent, or under recovery,

315
00:15:09,720 --> 00:15:15,400
 which is about $30,000, so across the industry, it is common for commercial to be over recovering

316
00:15:15,400 --> 00:15:18,880
 and residential to be under recovering, so when you see that, that's not something that's

317
00:15:18,880 --> 00:15:23,920
 uncommon across the industry, so I just want to point that out.

318
00:15:23,920 --> 00:15:27,560
 We put this together, just thought this was a great slide for the public and the Public

319
00:15:27,560 --> 00:15:31,200
 Utility Board to kind of really understand what things cost, so you can see an 8-ounce

320
00:15:31,200 --> 00:15:36,540
 glass of water is about .025 cents, I want to make sure we understand this is in cents

321
00:15:36,540 --> 00:15:40,760
 and not dollars, I want people to think of, you know, flushing your toilet, for example,

322
00:15:40,760 --> 00:15:46,000
 cost 65 cents, it's .65 cents, so just wanted to point that out.

323
00:15:46,000 --> 00:15:49,840
 Taking a shower, you can see down there in the minutes, 8-minute shower cost about 7

324
00:15:49,840 --> 00:15:56,680
 cents, so just kind of put that into perspective.

325
00:15:56,680 --> 00:16:01,120
 So before we get into the rate conversation, and Mr. Taylor, you had asked this question

326
00:16:01,120 --> 00:16:05,200
 earlier, we'll get to this bullet point in just a second about the average usage.

327
00:16:05,200 --> 00:16:09,280
 So the residential bill is made up of two charges each month, the facility charge, which

328
00:16:09,280 --> 00:16:14,800
 is that fixed fee based on the meter size, and the second component is that volume charge.

329
00:16:14,800 --> 00:16:18,840
 Currently, there are seasonal rates, meaning that there's a winter block structure and

330
00:16:18,840 --> 00:16:24,980
 a summer block structure, to talk a little bit about that to you, or with you, here shortly,

331
00:16:24,980 --> 00:16:28,080
 and some options to maybe do away with that to keep those bills from changing throughout

332
00:16:28,080 --> 00:16:29,440
 the year.

333
00:16:29,440 --> 00:16:35,040
 The average residential consumption decreased from 9,200 gallons to 7,600, so that is great

334
00:16:35,040 --> 00:16:36,040
 news.

335
00:16:36,040 --> 00:16:37,040
 That did not happen, of course, overnight.

336
00:16:37,040 --> 00:16:43,680
 That was a period of time, but we do continue to communicate conservation within the community.

337
00:16:43,680 --> 00:16:47,880
 The rate structure is set up such to incentivize it, so we are looking for your guidance today

338
00:16:47,880 --> 00:16:52,800
 to further that along in those conservation efforts.

339
00:16:52,800 --> 00:16:57,560
 Right now, currently, so the residential customers fits into the first tier, which is 0 to 15,000,

340
00:16:57,560 --> 00:16:58,960
 which is a fairly large tier.

341
00:16:58,960 --> 00:17:03,520
 We'll talk about that in a little while, and then seasonal rates, as I mentioned earlier,

342
00:17:03,520 --> 00:17:07,280
 are changed twice a year, so customer service goes in there and adjusts this volumetric

343
00:17:07,280 --> 00:17:13,560
 rate for customers twice a year, so it's not really consistent what customers could expect

344
00:17:13,560 --> 00:17:19,200
 to pay in the winter and summer, so we'll talk a little bit about that.

345
00:17:19,200 --> 00:17:23,200
 This was a result of the cost of service study, which is a great analysis, and I wanted to

346
00:17:23,200 --> 00:17:25,240
 share this with the group.

347
00:17:25,240 --> 00:17:26,240
 A couple of different things on here.

348
00:17:26,240 --> 00:17:30,440
 I know this is a pretty busy slide, but I'll draw your attention first right here to this

349
00:17:30,440 --> 00:17:32,720
 table that says current.

350
00:17:32,720 --> 00:17:37,200
 This is the current structure that's currently in place, so we have a 0 to 15,000-gallon

351
00:17:37,200 --> 00:17:43,080
 tier, we have a 15 to 30, a 30 to 50, and then an over 50,000-gallon tier.

352
00:17:43,080 --> 00:17:48,080
 One may ask, how does our customers break down into these tiers, and 89% of the customers

353
00:17:48,080 --> 00:17:54,600
 fit into the first tier, 0 to 15,000, with about 11% being over 15 to 50,000 gallons,

354
00:17:54,600 --> 00:17:58,360
 so about 11% of the bill distribution.

355
00:17:58,360 --> 00:18:03,640
 That's a little bit more, about 15% that you can see over here, but the bill distribution

356
00:18:03,640 --> 00:18:08,840
 for those bills going out is about 11%, is above 15,000 gallons, and that'll be important

357
00:18:08,840 --> 00:18:09,840
 here in just a second.

358
00:18:09,840 --> 00:18:14,920
 We get to the next slide, and we can flip back to this slide if you so deem necessary.

359
00:18:14,920 --> 00:18:18,520
 The proposed, we'll talk a little bit about this now, definitely talk about it in detail

360
00:18:18,520 --> 00:18:19,520
 in the next slide.

361
00:18:19,520 --> 00:18:25,920
 We are looking to introduce or get your thoughts on a new tier of 0 to 5,000 or 0 to 7,500.

362
00:18:25,920 --> 00:18:31,000
 The 0 to 7,500 is not on here, it's actually two options for the PV to consider, so really

363
00:18:31,000 --> 00:18:35,760
 just kind of narrowing down that first tier where it's not so wide.

364
00:18:35,760 --> 00:18:39,280
 Then this is the meter breakdown, as I mentioned earlier, the most common meter for residential

365
00:18:39,280 --> 00:18:45,040
 customers is the 3/4-inch meter, the second common being the 1-inch meter, so about 31,800

366
00:18:45,040 --> 00:18:47,640
 customers fit into the 3/4-inch meter.

367
00:18:47,640 --> 00:18:52,040
 Then this bar graph you see here just kind of shows you how customers break out on a

368
00:18:52,040 --> 00:18:56,520
 per-thousand-gallon usage basis per month, so you can see the majority of those customers

369
00:18:56,520 --> 00:19:02,040
 being anywhere from 0 to 16,000 or 17,000 gallons, so with the vast majority of them

370
00:19:02,040 --> 00:19:07,040
 being anywhere from 0 to 7, that's 7,600 average usage I mentioned earlier.

371
00:19:07,040 --> 00:19:08,040
 Nick?

372
00:19:08,040 --> 00:19:09,320
 Yes, ma'am.

373
00:19:09,320 --> 00:19:17,360
 Could you give me an example of an entity that would have a 1-inch, a 1.5 and 2?

374
00:19:17,360 --> 00:19:22,560
 I don't have that in front of me, Stephen Hay, the director of water is here, he may

375
00:19:22,560 --> 00:19:26,380
 have that, but it's probably something we'd have to follow up with you on, a different

376
00:19:26,380 --> 00:19:31,760
 type of business or a different type of residential property that would have that, I would suspect

377
00:19:31,760 --> 00:19:35,720
 to be someone maybe with a larger lot that does some irrigation, maybe they need a larger

378
00:19:35,720 --> 00:19:39,320
 meter to accommodate that usage, but that's something we'd definitely have to follow

379
00:19:39,320 --> 00:19:42,160
 up with you on, Mr. Russell, yeah, absolutely.

380
00:19:42,160 --> 00:19:47,720
 I'll write that question down really quick.

381
00:19:47,720 --> 00:19:55,900
 I have a question as well, I wonder, you mentioned something about 7,500 and 5,000, so what was

382
00:19:55,900 --> 00:20:03,560
 driving those choices between the two, and it looks like you only show the 5,000 on the

383
00:20:03,560 --> 00:20:08,960
 proposed change, so could you address those?

384
00:20:08,960 --> 00:20:20,360
 So what's driving the decrease from 9,200 to 7,600, that decrease in average usage?

385
00:20:20,360 --> 00:20:25,160
 That's your question, Mr. Rybak, I think it would be conservation communication, the city

386
00:20:25,160 --> 00:20:30,760
 communicating to customers to conserve water during those hot and dry periods, also energy

387
00:20:30,760 --> 00:20:35,280
 efficient appliances in your household, you know, toilets, for example, have the gallons

388
00:20:35,280 --> 00:20:39,800
 that they take to flush has actually decreased over the years, was that your question, Mr.

389
00:20:39,800 --> 00:20:40,800
 Rybak?

390
00:20:40,800 --> 00:20:47,560
 Well, I'm sorry, I'm having a little bit of trouble hearing your microphone there at the

391
00:20:47,560 --> 00:20:52,400
 podium, which I had earlier, but now that I have a question in the middle of this, I

392
00:20:52,400 --> 00:20:59,320
 can link that out, so what I'm asking is, you're showing us a proposed budget or proposed

393
00:20:59,320 --> 00:21:08,080
 rate structure at 5,000, you also considered 7,500 gallons as a cutoff.

394
00:21:08,080 --> 00:21:13,560
 So my question, I'm sorry, I don't think I expressed it very well, is what was the determinant

395
00:21:13,560 --> 00:21:20,520
 between choosing one or both of those, and you said there is a 7,500 gallon option, which

396
00:21:20,520 --> 00:21:26,200
 we don't have in this presentation currently, so I'm just curious what's driving those

397
00:21:26,200 --> 00:21:32,520
 choices that you're making or presenting on the rate spectrum, is that better?

398
00:21:32,520 --> 00:21:34,920
 That's absolutely, it's clear, thank you very much.

399
00:21:34,920 --> 00:21:38,240
 So there are two options, and we'll get into those in the next slide, it does show both

400
00:21:38,240 --> 00:21:39,240
 options.

401
00:21:39,240 --> 00:21:43,520
 So the 7,500 gallon option that you had mentioned is based on the average usage, so that average

402
00:21:43,520 --> 00:21:47,600
 usage being 7,600 with the thought that the majority of the customers could fit into that

403
00:21:47,600 --> 00:21:48,800
 first tier.

404
00:21:48,800 --> 00:21:54,320
 The second option of 5,000 gallons is basically the average usage in the winter months excluding

405
00:21:54,320 --> 00:21:55,420
 irrigation.

406
00:21:55,420 --> 00:21:59,840
 So it removes irrigation, it looks at more human consumption than it does irrigating

407
00:21:59,840 --> 00:22:00,840
 those lawns.

408
00:22:00,840 --> 00:22:03,160
 So that's where those two tier cutoffs came from.

409
00:22:03,160 --> 00:22:07,920
 One is from the average usage, and one is from the winter usage excluding irrigation.

410
00:22:07,920 --> 00:22:11,320
 Mr. Ibex, did I answer your question?

411
00:22:11,320 --> 00:22:13,960
 Yes, sir, thank you.

412
00:22:13,960 --> 00:22:18,200
 And I'll pull up the slide that'll show the 7,500 gallon chart here in just a second.

413
00:22:18,200 --> 00:22:22,400
 I want everybody to be sure to understand exactly what we're proposing and what feedback

414
00:22:22,400 --> 00:22:27,880
 you want to give us.

415
00:22:27,880 --> 00:22:34,760
 Okay, so we'll walk through this and we can spend as much time as we need to on this slide,

416
00:22:34,760 --> 00:22:36,600
 we can come back to it, of course.

417
00:22:36,600 --> 00:22:40,440
 So there's three different options, we're looking for feedback from you today.

418
00:22:40,440 --> 00:22:44,160
 We do have a recommendation of what staff recommends, but definitely if your feedback

419
00:22:44,160 --> 00:22:47,860
 is different, we will take that forward and present that to council tomorrow when this

420
00:22:47,860 --> 00:22:49,560
 presentation goes forward.

421
00:22:49,560 --> 00:22:53,960
 So option one is the current rate structure, if PB gives us the guidance, we would leave

422
00:22:53,960 --> 00:22:58,320
 the current rate structure in place, the rates wouldn't change, we would still have a winter

423
00:22:58,320 --> 00:23:00,240
 block and a summer block.

424
00:23:00,240 --> 00:23:04,040
 Those customers would see a rate change throughout the year, well, twice a year, their rate would

425
00:23:04,040 --> 00:23:06,060
 change for the volumetric rate.

426
00:23:06,060 --> 00:23:11,000
 The second option is a zero to 7,500 gallon tier, and as I mentioned, that is based on

427
00:23:11,000 --> 00:23:16,180
 the average consumption of 7,600, is where that 7,500 comes from.

428
00:23:16,180 --> 00:23:20,520
 In this option though, what we'll be looking to do is to simplify the residential bills,

429
00:23:20,520 --> 00:23:25,960
 is to combine the winter and summer rates, to create a combined volumetric rate.

430
00:23:25,960 --> 00:23:29,880
 This is something common in the industry that you see based on the feedback we receive from

431
00:23:29,880 --> 00:23:33,720
 our consultant during the cost of service study, so definitely want to get your feedback

432
00:23:33,720 --> 00:23:35,020
 on it today.

433
00:23:35,020 --> 00:23:40,440
 If you did this option, customers would see a $3.15 decrease per month.

434
00:23:40,440 --> 00:23:44,520
 Now what's important to note and what I want to point out we have on the next slide too,

435
00:23:44,520 --> 00:23:49,880
 each one of these options is revenue neutral to this utility, so if we do these rate options,

436
00:23:49,880 --> 00:23:53,040
 we're not going to see a rate revenue decrease for the water utility.

437
00:23:53,040 --> 00:23:57,400
 What will happen is that revenue loss from those lower tiers, so the lower tier customers

438
00:23:57,400 --> 00:24:00,480
 actually see a decrease of $3.15.

439
00:24:00,480 --> 00:24:05,020
 That is being made up in the higher tiers within this category, so that 11% that I mentioned

440
00:24:05,020 --> 00:24:11,920
 earlier, those 11% of customers that are over 15,000 gallons would actually see a rate increase.

441
00:24:11,920 --> 00:24:14,600
 So I want to be sure to point that out to the PVV because it's mentioned on the next

442
00:24:14,600 --> 00:24:17,080
 slide, but I want to be sure to point that out.

443
00:24:17,080 --> 00:24:21,760
 Option number three is a zero to 5,000 gallons, that 5,000 cutoff coming from that winter

444
00:24:21,760 --> 00:24:25,540
 average, excluding irrigation in the summer months.

445
00:24:25,540 --> 00:24:29,320
 Under this option, same thing, it would combine the winter and the summer rate into one block

446
00:24:29,320 --> 00:24:33,700
 or one combined rate, it wouldn't be seasonal anymore.

447
00:24:33,700 --> 00:24:39,720
 Under this option, customers with the average usage of $7,600 would see a $2.10 decrease

448
00:24:39,720 --> 00:24:43,960
 per month, so a little bit different structure.

449
00:24:43,960 --> 00:24:47,240
 Staff is recommending, it's why we have the red box, I'm sure you can gather, staff is

450
00:24:47,240 --> 00:24:52,600
 recommending option two, create a first tier from zero to 7,500 gallons.

451
00:24:52,600 --> 00:24:55,720
 So I have a few questions.

452
00:24:55,720 --> 00:24:56,720
 Go ahead.

453
00:24:56,720 --> 00:24:57,720
 I do too.

454
00:24:57,720 --> 00:24:58,720
 Go ahead.

455
00:24:58,720 --> 00:25:00,880
 See if you take mine.

456
00:25:00,880 --> 00:25:05,760
 So you're talking in averages and average bills, which means average customer has 12

457
00:25:05,760 --> 00:25:12,040
 bills a year, and average usage is 7,600 gallons.

458
00:25:12,040 --> 00:25:18,520
 What's like the median usage, that I think it might be more, median households might

459
00:25:18,520 --> 00:25:22,440
 be more applicable than the average, because you did this long tail with a big bump right

460
00:25:22,440 --> 00:25:24,840
 there at the end above 50,000.

461
00:25:24,840 --> 00:25:26,480
 I think that's a great question.

462
00:25:26,480 --> 00:25:31,200
 I don't have the median in front of me, I suspect of course it'd be above the 7,600,

463
00:25:31,200 --> 00:25:34,360
 but we could look at that and follow up with you, I don't have that today.

464
00:25:34,360 --> 00:25:39,840
 And then what are summer months and what are winter months?

465
00:25:39,840 --> 00:25:48,920
 It's, let's see here, it's May through October, if I'm not mistaken, that's no, hang on,

466
00:25:48,920 --> 00:25:55,920
 second April, May, it's November, December, January, February, because we extended with

467
00:25:55,920 --> 00:25:56,920
 URI.

468
00:25:56,920 --> 00:26:01,800
 Yeah, I don't have my rate book in front of me, I'd have to look back and see exactly

469
00:26:01,800 --> 00:26:02,800
 what months are.

470
00:26:02,800 --> 00:26:03,800
 I can get that for you.

471
00:26:03,800 --> 00:26:07,440
 But the summer months, of course in the summer block rate structure, I think it changes in

472
00:26:07,440 --> 00:26:09,520
 May if I'm not mistaken each year.

473
00:26:09,520 --> 00:26:11,720
 Is it six months summer, six months winter?

474
00:26:11,720 --> 00:26:15,920
 Six months cycles, that back you up, I think to, it would change like in November, December

475
00:26:15,920 --> 00:26:19,920
 time frame, take you through May, and then in May the block structure for summer come

476
00:26:19,920 --> 00:26:20,920
 into effect.

477
00:26:20,920 --> 00:26:21,920
 Yeah.

478
00:26:21,920 --> 00:26:22,920
 Thank you.

479
00:26:22,920 --> 00:26:23,920
 Okay.

480
00:26:23,920 --> 00:26:30,960
 And my questions are back then to the why option two versus option three.

481
00:26:30,960 --> 00:26:34,240
 I think about conserving water in the summertime.

482
00:26:34,240 --> 00:26:38,800
 I use water as awesome so that I'm not over irrigating my lawn.

483
00:26:38,800 --> 00:26:43,180
 So it tells me how much to irrigate and I adjust for that.

484
00:26:43,180 --> 00:26:48,360
 If we did option three, do you think that would encourage more people to watch how they're

485
00:26:48,360 --> 00:26:50,520
 over irrigating their lawns?

486
00:26:50,520 --> 00:26:54,240
 I walked through my neighborhood, it would have just rained two inches and everybody's

487
00:26:54,240 --> 00:26:55,600
 sprinklers are going off.

488
00:26:55,600 --> 00:26:59,200
 It's like, really, you can go in the garage and shut those off.

489
00:26:59,200 --> 00:27:01,160
 So that's just a thought.

490
00:27:01,160 --> 00:27:02,160
 Okay.

491
00:27:02,160 --> 00:27:06,600
 I see what you're saying because the average usage is 7,600 and the cut off would be 5,000.

492
00:27:06,600 --> 00:27:07,600
 Yes.

493
00:27:07,600 --> 00:27:09,640
 That would then be household use.

494
00:27:09,640 --> 00:27:10,640
 Yeah, absolutely.

495
00:27:10,640 --> 00:27:12,960
 So it's just one opinion.

496
00:27:12,960 --> 00:27:15,800
 That's definitely feedback and if that's the guidance we get from the PEB, we definitely

497
00:27:15,800 --> 00:27:18,600
 take that forward to council tomorrow, absolutely.

498
00:27:18,600 --> 00:27:23,800
 And I think if we move to median, what you'll see is the average is 7,600, but the median

499
00:27:23,800 --> 00:27:24,800
 is 4,500.

500
00:27:24,800 --> 00:27:25,800
 It's much higher.

501
00:27:25,800 --> 00:27:26,800
 Yeah.

502
00:27:26,800 --> 00:27:35,440
 So 80% of households would have no incentive to conserve and no impact at the 7,500 where

503
00:27:35,440 --> 00:27:43,840
 maybe at 5,000, maybe 45 or 50% of households would have no incentive.

504
00:27:43,840 --> 00:27:51,340
 If I could add to that, I think the second option would, though there's very few people

505
00:27:51,340 --> 00:27:58,440
 in that tail, they'd be very significantly affected by a much larger increase.

506
00:27:58,440 --> 00:27:59,440
 It would be.

507
00:27:59,440 --> 00:28:05,200
 So I think that's just something to consider as well.

508
00:28:05,200 --> 00:28:06,200
 Great feedback.

509
00:28:06,200 --> 00:28:07,200
 Anybody else have any questions?

510
00:28:07,200 --> 00:28:08,200
 Oh, wait.

511
00:28:08,200 --> 00:28:09,200
 There we go.

512
00:28:09,200 --> 00:28:13,200
 I just had a quick question just to get my brain around this.

513
00:28:13,200 --> 00:28:20,720
 So the average, if you break down the average by summer and winter, people are using well

514
00:28:20,720 --> 00:28:25,420
 over 7,500 in the summer because they're irrigating.

515
00:28:25,420 --> 00:28:30,320
 So they would be paying at a higher rate in the summer.

516
00:28:30,320 --> 00:28:33,920
 We would still be going, in a way, we would still be going back to a winter and a summer

517
00:28:33,920 --> 00:28:34,920
 rate.

518
00:28:34,920 --> 00:28:37,800
 Do you see what I mean?

519
00:28:37,800 --> 00:28:43,720
 Even though there's not an across the board change in rates, since so many people are

520
00:28:43,720 --> 00:28:49,360
 really gonna be using the higher volume in the summer, they're gonna be bumped up to

521
00:28:49,360 --> 00:28:52,760
 the next tier anyway.

522
00:28:52,760 --> 00:28:59,280
 And you're taking that into account when you're coming up with the decrease of 3.15 a month

523
00:28:59,280 --> 00:29:02,080
 or 2.10 a month?

524
00:29:02,080 --> 00:29:03,080
 Yes.

525
00:29:03,080 --> 00:29:04,560
 So a couple of things.

526
00:29:04,560 --> 00:29:10,200
 So currently, the decrease you see per month is based on 7,600 gallons.

527
00:29:10,200 --> 00:29:15,700
 Realistically, a customer could use up to 15,000 gallons a month without seeing an increase.

528
00:29:15,700 --> 00:29:20,860
 So if your average consumption a month is 7,600, which it used to be 9,200, that customer

529
00:29:20,860 --> 00:29:25,960
 could irrigate in the summer months up to 15,000 gallons before they see the rate increase.

530
00:29:25,960 --> 00:29:29,440
 So then once they get to 16, of course, they would see an increase they're currently not

531
00:29:29,440 --> 00:29:31,780
 experiencing right now.

532
00:29:31,780 --> 00:29:37,000
 So but for option three, they would be cruising along at the lower rate until the summer and

533
00:29:37,000 --> 00:29:40,320
 then they'd be bumped up.

534
00:29:40,320 --> 00:29:46,040
 Well, yeah, actually in option two and option three, the only two differences between those

535
00:29:46,040 --> 00:29:48,080
 tables is the first tier.

536
00:29:48,080 --> 00:29:52,720
 So in option two, it's zero to 7,500, option three, of course, is zero to 5,000.

537
00:29:52,720 --> 00:29:58,120
 But what we've done basically to get that additional 2,500 built into option two is

538
00:29:58,120 --> 00:30:00,160
 the rates in the higher tiers have increased.

539
00:30:00,160 --> 00:30:06,480
 So for example, the 7,611 is higher than the higher 7,12, the 9,68 is higher than 9,53,

540
00:30:06,480 --> 00:30:08,520
 the 12,04 is higher than 11,79.

541
00:30:08,520 --> 00:30:13,080
 So those increases, those customers above 15,000 gallons would be more in option two

542
00:30:13,080 --> 00:30:15,080
 than they would option three.

543
00:30:15,080 --> 00:30:16,080
 Okay.

544
00:30:16,080 --> 00:30:17,080
 Right.

545
00:30:17,080 --> 00:30:18,080
 Hopefully the answer helps.

546
00:30:18,080 --> 00:30:19,080
 Yeah.

547
00:30:19,080 --> 00:30:21,120
 I guess that makes sense.

548
00:30:21,120 --> 00:30:29,120
 I'm just thinking there aren't very many people who use less than 5,000.

549
00:30:29,120 --> 00:30:37,320
 I mean if the average is 7,600 at any given point, there aren't very many people.

550
00:30:37,320 --> 00:30:44,520
 So it would be 5,000 below right here, if you went back, it would be 55% of the bill

551
00:30:44,520 --> 00:30:45,520
 distribution.

552
00:30:45,520 --> 00:30:46,520
 Right.

553
00:30:46,520 --> 00:30:49,680
 And then 34% would be in five to 15.

554
00:30:49,680 --> 00:30:51,760
 So it would be 89%.

555
00:30:51,760 --> 00:30:53,840
 These are averages?

556
00:30:53,840 --> 00:30:54,840
 The percentages?

557
00:30:54,840 --> 00:30:55,840
 No, the volume.

558
00:30:55,840 --> 00:30:56,840
 The volume.

559
00:30:56,840 --> 00:30:57,840
 Oh, the volumes.

560
00:30:57,840 --> 00:30:58,840
 Yeah.

561
00:30:58,840 --> 00:30:59,840
 The volume's averages.

562
00:30:59,840 --> 00:31:00,840
 Yeah, absolutely.

563
00:31:00,840 --> 00:31:01,840
 But it's average across the year.

564
00:31:01,840 --> 00:31:02,840
 Correct.

565
00:31:02,840 --> 00:31:03,840
 Yeah, and it'd be higher in the summer months.

566
00:31:03,840 --> 00:31:04,840
 As opposed to per season.

567
00:31:04,840 --> 00:31:05,840
 Absolutely, yeah.

568
00:31:05,840 --> 00:31:06,840
 And that's where that 5,000 came in.

569
00:31:06,840 --> 00:31:11,760
 For example, you know, the average is 7,600 right for the entire year.

570
00:31:11,760 --> 00:31:15,420
 The average for the winter months, excluding the summer usage, is 5,000.

571
00:31:15,420 --> 00:31:16,880
 That's where that 5,000 came from.

572
00:31:16,880 --> 00:31:17,880
 So yeah.

573
00:31:17,880 --> 00:31:18,880
 Okay.

574
00:31:18,880 --> 00:31:20,540
 Hopefully that helps you answer that question.

575
00:31:20,540 --> 00:31:21,540
 I guess it's a rational basis.

576
00:31:21,540 --> 00:31:22,540
 I can take this.

577
00:31:22,540 --> 00:31:26,600
 I'm supposed to take this presentation down too, I think, when there's questions.

578
00:31:26,600 --> 00:31:27,600
 Just to follow up too.

579
00:31:27,600 --> 00:31:32,800
 So the winter months are November through April, and then obviously summer is May through

580
00:31:32,800 --> 00:31:33,800
 October.

581
00:31:33,800 --> 00:31:34,800
 Okay.

582
00:31:34,800 --> 00:31:35,800
 Yeah.

583
00:31:35,800 --> 00:31:36,800
 Thank you, Tony.

584
00:31:36,800 --> 00:31:44,760
 Madam Chair, I have a comment, a question for the speaker.

585
00:31:44,760 --> 00:31:45,760
 I didn't hear that.

586
00:31:45,760 --> 00:31:46,760
 Did you hear?

587
00:31:46,760 --> 00:31:47,760
 I think he has a question.

588
00:31:47,760 --> 00:31:48,760
 I don't know what the question.

589
00:31:48,760 --> 00:31:49,760
 I'm sorry, Lee.

590
00:31:49,760 --> 00:31:50,760
 Can you go ahead?

591
00:31:50,760 --> 00:31:51,760
 We can't.

592
00:31:51,760 --> 00:31:52,760
 We didn't hear that.

593
00:31:52,760 --> 00:31:53,760
 Okay.

594
00:31:53,760 --> 00:31:59,120
 I was just letting you know that I wanted to ask a question or make a comment.

595
00:31:59,120 --> 00:32:05,920
 So if I've got the floor, then I'm torn on this billing change in so much as I appreciate

596
00:32:05,920 --> 00:32:14,280
 the simplification of having just a standard bill, if you will, and not a seasonal adjustment.

597
00:32:14,280 --> 00:32:20,240
 But if the concern is to try to alert people with the fact that we're using more water

598
00:32:20,240 --> 00:32:25,040
 during the summer, it would seem like the current rate structure would certainly let

599
00:32:25,040 --> 00:32:32,480
 people know more rapidly that they are using more water at that time of year than they

600
00:32:32,480 --> 00:32:35,960
 would with this rate structure, which is averaged out over the whole year.

601
00:32:35,960 --> 00:32:42,600
 So it looks like a nice idea to standardize it and average it in the way that you have,

602
00:32:42,600 --> 00:32:46,920
 and I appreciate the work that's gone into it, but it seems to me that if you're trying

603
00:32:46,920 --> 00:32:51,400
 to encourage people to do less irrigation in the summertime, which seems to be the big

604
00:32:51,400 --> 00:32:59,160
 question here, that having the rate structure have, which encourages, I think, by the alternation

605
00:32:59,160 --> 00:33:06,400
 of rates in summer, but a more careful and judicious use of irrigation on the home.

606
00:33:06,400 --> 00:33:13,360
 So I'm torn between what we do have and how it appears to work and what's being authored

607
00:33:13,360 --> 00:33:16,960
 and how it will work, because we're projecting since we don't know.

608
00:33:16,960 --> 00:33:21,880
 So I wonder if you have any thoughts about that in terms of making this change from what

609
00:33:21,880 --> 00:33:24,360
 we're currently doing?

610
00:33:24,360 --> 00:33:27,920
 Mr. Rybak, I think that's great feedback, and I should have said this to the PUB at

611
00:33:27,920 --> 00:33:29,520
 the first time, and I think you recall this.

612
00:33:29,520 --> 00:33:34,560
 So the city auditor did present a rate audit a couple weeks ago to the PUB and city council.

613
00:33:34,560 --> 00:33:37,560
 In that audit, really what she encouraged staff to do and one of the recommendations

614
00:33:37,560 --> 00:33:42,000
 was to look at the water rate structure, look at that first tier, and try to come up with

615
00:33:42,000 --> 00:33:45,800
 some alternatives for council and PUB to consider, because really, that first tier is fairly

616
00:33:45,800 --> 00:33:46,800
 large.

617
00:33:46,800 --> 00:33:51,640
 Given your point with winter and summer blocks rate structuring, that is definitely an advantage

618
00:33:51,640 --> 00:33:52,640
 of it.

619
00:33:52,640 --> 00:33:56,240
 It does discourage people from irrigating in the summer months because that rate goes

620
00:33:56,240 --> 00:34:01,640
 up accordingly, and if that's the direction the PUB gives us today, we definitely could

621
00:34:01,640 --> 00:34:05,200
 take back and establish a new tier in the block rate structure and keep the summer and

622
00:34:05,200 --> 00:34:07,840
 winter rates, if that's the direction the PUB gives us.

623
00:34:07,840 --> 00:34:11,080
 So when we get to the presentation and once you give us your guidance, we'll definitely

624
00:34:11,080 --> 00:34:16,920
 take that forward to city council and come back with future discussions throughout August.

625
00:34:16,920 --> 00:34:18,920
 Thank you.

626
00:34:18,920 --> 00:34:20,920
 You're welcome.

627
00:34:20,920 --> 00:34:24,920
 Devon, do you have another-- Yes, go ahead.

628
00:34:24,920 --> 00:34:27,760
 Yeah, I do have-- trying to think of how to word that.

629
00:34:27,760 --> 00:34:28,760
 Yeah, absolutely.

630
00:34:28,760 --> 00:34:29,880
 Kind of a question and a statement.

631
00:34:29,880 --> 00:34:40,040
 So I'm just trying to-- like this long tail.

632
00:34:40,040 --> 00:34:46,000
 So average usage is 4,000 or 5,000 gallons a month of the average home, and then you

633
00:34:46,000 --> 00:34:53,400
 have this long tail of kind of heavy users, and we have this situation where most households

634
00:34:53,400 --> 00:34:57,680
 sit over in the 4,000 or 5,000 at the peak of that curve that you had up on the chart

635
00:34:57,680 --> 00:34:58,680
 earlier.

636
00:34:58,680 --> 00:35:00,840
 Yeah, I can pull it up, yeah.

637
00:35:00,840 --> 00:35:07,080
 And you have a handful of users, like 1% of bills, it says, are using basically 10 times--

638
00:35:07,080 --> 00:35:13,760
 like they're 10 households' worth of water consumption.

639
00:35:13,760 --> 00:35:17,480
 And you use it, you pay for it, that's appropriate.

640
00:35:17,480 --> 00:35:21,160
 We have, I think, ample resources right now.

641
00:35:21,160 --> 00:35:26,960
 What I wonder about is as we continue to grow, and I imagine both of those parties grow.

642
00:35:26,960 --> 00:35:33,080
 We have 99% of users are typical, and we have the 1% at the far end of the tail, are heavy

643
00:35:33,080 --> 00:35:35,960
 users in our future growth, too.

644
00:35:35,960 --> 00:35:40,200
 And as we need to upgrade our water mains, as we need to upgrade our water treatment

645
00:35:40,200 --> 00:35:46,080
 capacity, you know, delivering water, running a pump uses a little electricity, you pay

646
00:35:46,080 --> 00:35:50,240
 your $8 of 1,000 gallons, whatever.

647
00:35:50,240 --> 00:35:57,640
 But whenever we need $100 million water treatment plant, due to-- and if you took that 1% using

648
00:35:57,640 --> 00:36:02,840
 10 times as much, that's 10% of the consumption comes from this small group of bills.

649
00:36:02,840 --> 00:36:08,960
 So I think that's-- there's-- I used the word "incentivize" earlier about incentivizing

650
00:36:08,960 --> 00:36:09,960
 water use.

651
00:36:09,960 --> 00:36:16,800
 And it's like, oh, well, we want to have an incentive to encourage conservation, not overuse.

652
00:36:16,800 --> 00:36:20,120
 But there is also an aspect of paying your fair share.

653
00:36:20,120 --> 00:36:26,560
 If you're-- if a group of people's actions are going to make us build a larger water

654
00:36:26,560 --> 00:36:32,160
 treatment plant, or make us make a $100 million or $200 million capital investment five or

655
00:36:32,160 --> 00:36:41,520
 10 years sooner because of their choices, it seems fair to make sure that they pay for

656
00:36:41,520 --> 00:36:42,520
 that.

657
00:36:42,520 --> 00:36:50,840
 And I'm glad to see the rate structure moves the tiers down into that, into where half

658
00:36:50,840 --> 00:36:54,640
 or so of the population has some incentive.

659
00:36:54,640 --> 00:36:59,560
 Now if I'm using 6,000 gallons a month, it's going to be an extra dollar or something like

660
00:36:59,560 --> 00:37:08,000
 that a month on my bill, but if I take simple steps to move down to 4,500 gallons a month,

661
00:37:08,000 --> 00:37:14,060
 I do see a gain in savings, a greater gain in savings.

662
00:37:14,060 --> 00:37:20,020
 So I really like the 0 to 5,000 because I think that gives a small incentive to the

663
00:37:20,020 --> 00:37:21,960
 greatest number of people.

664
00:37:21,960 --> 00:37:28,640
 And I wish-- and I know this is-- would be a large and complicated problem.

665
00:37:28,640 --> 00:37:35,400
 But if-- I wish we could model what this would do to water use over 10 years.

666
00:37:35,400 --> 00:37:43,840
 If we have rate structure A, B, and C, does it-- do we expect a higher level of conservation,

667
00:37:43,840 --> 00:37:53,280
 a lower average or median usage, summer versus winter rates, do we expect a change in usage?

668
00:37:53,280 --> 00:38:02,120
 But I think that might be too big of a problem to answer quickly or easily.

669
00:38:02,120 --> 00:38:03,120
 So I don't know.

670
00:38:03,120 --> 00:38:04,480
 That might be its own project.

671
00:38:04,480 --> 00:38:07,520
 Well, I think that's great-- all great points, right?

672
00:38:07,520 --> 00:38:10,840
 I think that's exactly why we're talking about the water rate structure today is I think

673
00:38:10,840 --> 00:38:15,720
 what policies we put in place helping conserve that water does play an impact when those

674
00:38:15,720 --> 00:38:17,520
 plant expansions are needed.

675
00:38:17,520 --> 00:38:21,760
 For example, that $100 million plant that you had mentioned, that if people continue

676
00:38:21,760 --> 00:38:24,800
 to conserve water, there's a possibility maybe it could move out, maybe not.

677
00:38:24,800 --> 00:38:26,680
 Stephen can answer those questions great.

678
00:38:26,680 --> 00:38:30,560
 And Stephen has people on his staff that could do some forecasting if you'd like to see it

679
00:38:30,560 --> 00:38:31,560
 and we can follow up with you.

680
00:38:31,560 --> 00:38:35,760
 So if you'd like to see, for example, if the average usage eventually gets to 4,500 gallons

681
00:38:35,760 --> 00:38:39,120
 or 5,000 gallons, what would that make that plant expansion do?

682
00:38:39,120 --> 00:38:40,560
 Would it push it out or not?

683
00:38:40,560 --> 00:38:41,560
 And we could look at that.

684
00:38:41,560 --> 00:38:44,160
 We have forecast models internally that look at that.

685
00:38:44,160 --> 00:38:48,080
 And one thing I'll mention-- and I think this is in the presentation-- is that up until

686
00:38:48,080 --> 00:38:52,960
 this year, I think it may still be decreasing, but we had a decreasing GPCD and what they

687
00:38:52,960 --> 00:38:55,560
 call a GPCD in the water utility.

688
00:38:55,560 --> 00:38:58,320
 And we're right around 140 gallons a day.

689
00:38:58,320 --> 00:39:04,240
 So GPCD is the gallons consumed per day per person, is about 140 gallons.

690
00:39:04,240 --> 00:39:05,240
 So I think that's important.

691
00:39:05,240 --> 00:39:09,480
 It was decreasing in our last forecast model, but I want to point those out, all the great

692
00:39:09,480 --> 00:39:10,480
 points that you brought up.

693
00:39:10,480 --> 00:39:12,840
 And if you'd like to see the forecast data, we definitely could follow up with something

694
00:39:12,840 --> 00:39:13,840
 like that.

695
00:39:13,840 --> 00:39:14,840
 Absolutely.

696
00:39:14,840 --> 00:39:15,840
 Yeah, I would love to see the forecast data.

697
00:39:15,840 --> 00:39:20,840
 I don't know if you have any kind of model that says, this rate structure would lead

698
00:39:20,840 --> 00:39:26,120
 to 3% reduced use, and this one would lead to 5% reduced use, or if that-- like I said,

699
00:39:26,120 --> 00:39:28,960
 that modeling human behavior is very hard.

700
00:39:28,960 --> 00:39:35,400
 Yeah, it's almost like in our internal modeling software is Stephen and his staff, they model

701
00:39:35,400 --> 00:39:38,320
 it on their end and tell us, hey, this is how it breaks out between the classes and

702
00:39:38,320 --> 00:39:39,320
 the tiers.

703
00:39:39,320 --> 00:39:41,600
 We take that data and put it into the financial model.

704
00:39:41,600 --> 00:39:44,560
 That financial model gives us our revenues and we bring forward 2%.

705
00:39:44,560 --> 00:39:46,440
 So it's almost a team effort.

706
00:39:46,440 --> 00:39:47,440
 It's two-part.

707
00:39:47,440 --> 00:39:51,240
 So the first step is usually Stephen and his staff looking at the forecast, what it does.

708
00:39:51,240 --> 00:39:53,520
 We build it into the financial model accordingly.

709
00:39:53,520 --> 00:39:54,520
 Yeah.

710
00:39:54,520 --> 00:39:55,520
 Yeah.

711
00:39:55,520 --> 00:39:57,000
 Thank you.

712
00:39:57,000 --> 00:40:08,600
 So the average use being 7,600 per month, you said it was down from 9,200.

713
00:40:08,600 --> 00:40:10,320
 9,200, yes, sir.

714
00:40:10,320 --> 00:40:13,520
 So how many years of average is that?

715
00:40:13,520 --> 00:40:18,680
 So dating back to when I was involved in water, and the last study was done in 2014.

716
00:40:18,680 --> 00:40:24,880
 It's my assumption that usage came from that 2014 study, but, of course, that's something

717
00:40:24,880 --> 00:40:26,200
 we can follow up on, too.

718
00:40:26,200 --> 00:40:27,760
 It didn't happen over a year, of course.

719
00:40:27,760 --> 00:40:30,360
 It's probably back to 2014, 2013 time frame.

720
00:40:30,360 --> 00:40:31,360
 Right.

721
00:40:31,360 --> 00:40:32,360
 It's just rained a lot.

722
00:40:32,360 --> 00:40:37,240
 I don't think it stopped raining for a year, it seems like, so I wonder where that number

723
00:40:37,240 --> 00:40:38,240
 came from.

724
00:40:38,240 --> 00:40:39,240
 Yeah.

725
00:40:39,240 --> 00:40:40,240
 And that's a great point.

726
00:40:40,240 --> 00:40:42,760
 Our study was done in 2019, so this year's been really wet.

727
00:40:42,760 --> 00:40:45,160
 I don't think it's quite as wet last year, if I remember correctly.

728
00:40:45,160 --> 00:40:48,160
 Yeah, it was pretty wet last year, but this year is pretty wet, obviously.

729
00:40:48,160 --> 00:40:49,160
 We know.

730
00:40:49,160 --> 00:40:50,160
 Yeah.

731
00:40:50,160 --> 00:40:51,160
 Okay.

732
00:40:51,160 --> 00:40:55,960
 Then anybody, if you have any more questions, I'll move through the presentation, we can

733
00:40:55,960 --> 00:41:02,840
 continue this conversation, and give us your direction at the end, it would be great.

734
00:41:02,840 --> 00:41:05,880
 So the residential irrigation, I know we've already talked about irrigation a bunch, but

735
00:41:05,880 --> 00:41:08,480
 we wanted to bring this up to the --

736
00:41:08,480 --> 00:41:09,480
 The presentation is another --

737
00:41:09,480 --> 00:41:10,480
 Oh, sorry.

738
00:41:10,480 --> 00:41:11,480
 Hang on just a second.

739
00:41:11,480 --> 00:41:14,400
 That would probably help.

740
00:41:14,400 --> 00:41:22,080
 We'll definitely have questions if you can't see the slide, let's see here, all right.

741
00:41:22,080 --> 00:41:23,160
 Okay.

742
00:41:23,160 --> 00:41:26,540
 So residential irrigation, we've talked about this some, Mr. Ibeck, you had some questions

743
00:41:26,540 --> 00:41:30,480
 regarding the winter and summer block structure, so if you give us direction for that, we can

744
00:41:30,480 --> 00:41:31,760
 definitely bring that back.

745
00:41:31,760 --> 00:41:33,880
 So in this option, it's very similar to water.

746
00:41:33,880 --> 00:41:37,160
 We don't have to go through every single thing, again, but I wanted to point out to you, just

747
00:41:37,160 --> 00:41:40,120
 kind of walk you through the overall view of it here.

748
00:41:40,120 --> 00:41:44,720
 So option one is, of course, the no change, this would keep the current irrigation residential

749
00:41:44,720 --> 00:41:46,880
 rate structure that's in place.

750
00:41:46,880 --> 00:41:50,280
 You can see what those rates are between the two groups here.

751
00:41:50,280 --> 00:41:54,840
 Option two would be combining that winter and summer rate structure into one combined

752
00:41:54,840 --> 00:42:01,080
 rate, establishing that new tier as zero to 7,500 gallons, and then option three would

753
00:42:01,080 --> 00:42:06,560
 be establishing a tier from zero to 5,000 and combining that seasonal rate also.

754
00:42:06,560 --> 00:42:10,960
 I will point out that not all residential customers have irrigation meters.

755
00:42:10,960 --> 00:42:15,300
 They're definitely fewer than have water meters, of course, so that this is for the ones that

756
00:42:15,300 --> 00:42:21,320
 do have them.

757
00:42:21,320 --> 00:42:24,880
 And then this table, if no one has questions on irrigation, we can come back to it.

758
00:42:24,880 --> 00:42:30,500
 This table summarizes what that would look like based on the average usage.

759
00:42:30,500 --> 00:42:36,680
 So 89% that we mentioned earlier, 32,806 residential customers will see a rate decrease.

760
00:42:36,680 --> 00:42:41,360
 If you go with option two or option three, whatever direction you give us, 11% of the

761
00:42:41,360 --> 00:42:48,680
 customers in those higher tiers above 15,000 actually see an increase based on their usage.

762
00:42:48,680 --> 00:42:52,880
 And then you can see in the table option one, of course, a customer based on 7,600 gallons

763
00:42:52,880 --> 00:42:56,040
 is currently paying $46.62.

764
00:42:56,040 --> 00:43:02,160
 If you go with option two, they're ready to go 43.47, then option three you go to 44.52.

765
00:43:02,160 --> 00:43:08,480
 So there's a $3.15 decrease in option two and a $2.10 decrease in option three.

766
00:43:08,480 --> 00:43:13,400
 We can come back to this also.

767
00:43:13,400 --> 00:43:16,320
 Commercial rate recommendations, so we'll jump into commercial now.

768
00:43:16,320 --> 00:43:21,280
 We've got some wholesale waste water and definitely come back to residential if you all would like.

769
00:43:21,280 --> 00:43:25,140
 In commercial, there is not a winter and summer seasonal rates.

770
00:43:25,140 --> 00:43:29,280
 It's just one volumetric rate, so we're not looking to make any change, we're just recommending

771
00:43:29,280 --> 00:43:31,600
 to leave what's in place.

772
00:43:31,600 --> 00:43:39,120
 So you can see the facility charge is $50.99, volume charge is $4.34 per 1,000 gallons,

773
00:43:39,120 --> 00:43:47,240
 but the average customer's bill will be $246.29 a month.

774
00:43:47,240 --> 00:43:50,960
 And then commercial irrigation for those customers with commercial businesses, they have irrigation

775
00:43:50,960 --> 00:43:51,960
 meters.

776
00:43:51,960 --> 00:43:57,160
 There are currently or currently is a seasonal rate structure, so we have a winter and a

777
00:43:57,160 --> 00:43:59,040
 summer volumetric rate.

778
00:43:59,040 --> 00:44:02,360
 The facility charge, of course, stays consistent throughout the year.

779
00:44:02,360 --> 00:44:07,760
 We do have an option two for this one, which would be just combining those into one blended

780
00:44:07,760 --> 00:44:09,400
 rate of $5.75.

781
00:44:09,400 --> 00:44:13,080
 So under this option, a commercial customer with irrigation meters actually see a decrease

782
00:44:13,080 --> 00:44:18,400
 of $10.65 a month, and that's based on 42,000 gallons of usage.

783
00:44:18,400 --> 00:44:22,120
 So quite a bit more usage there.

784
00:44:22,120 --> 00:44:24,680
 >> Mr. Chairman, I have a quick question.

785
00:44:24,680 --> 00:44:25,680
 >> Yes, sir?

786
00:44:25,680 --> 00:44:31,920
 >> Who typically constitutes a commercial irrigation customer?

787
00:44:31,920 --> 00:44:35,240
 >> Who qualifies as a commercial irrigation customer?

788
00:44:35,240 --> 00:44:40,680
 Let me ask Stephen to come up here and -- let me ask Stephen, the director of water, to

789
00:44:40,680 --> 00:44:49,240
 come up here and give some examples of some water irrigation customers on the commercial

790
00:44:49,240 --> 00:44:50,240
 side.

791
00:44:50,240 --> 00:44:51,240
 >> Good morning.

792
00:44:51,240 --> 00:44:57,520
 A commercial irrigation customer would be like a large commercial property.

793
00:44:57,520 --> 00:45:04,280
 So if you think about, say, like the Target over there on Loop 288, how they have landscaping

794
00:45:04,280 --> 00:45:07,840
 around the project, so that's more of a more commercial customer.

795
00:45:07,840 --> 00:45:11,760
 Does that answer your question?

796
00:45:11,760 --> 00:45:12,760
 Sir?

797
00:45:12,760 --> 00:45:21,720
 >> So typically a commercial irrigation customer is one who has relatively large grounds to

798
00:45:21,720 --> 00:45:22,720
 irrigate?

799
00:45:22,720 --> 00:45:24,800
 Is that more or less the idea?

800
00:45:24,800 --> 00:45:25,800
 >> Yes, sir.

801
00:45:25,800 --> 00:45:26,800
 >> Okay.

802
00:45:26,800 --> 00:45:27,800
 Thank you.

803
00:45:27,800 --> 00:45:28,800
 >> Okay.

804
00:45:28,800 --> 00:45:29,800
 >> Okay.

805
00:45:29,800 --> 00:45:34,400
 Let me pull up the presentation.

806
00:45:34,400 --> 00:45:39,080
 We'll continue our way through it here.

807
00:45:39,080 --> 00:45:41,320
 Okay.

808
00:45:41,320 --> 00:45:46,080
 So for the PB members who have been here a while, these are the wholesale rates.

809
00:45:46,080 --> 00:45:50,280
 We bring these back throughout every year because they are bound by contract, so we

810
00:45:50,280 --> 00:45:54,240
 do adjust these rates each individual year as part of the budgeting process.

811
00:45:54,240 --> 00:45:57,760
 The first one being the wholesale WW2 rate.

812
00:45:57,760 --> 00:46:00,960
 We're not looking to make any change to that, but I just want to point out what that rate

813
00:46:00,960 --> 00:46:01,960
 was.

814
00:46:01,960 --> 00:46:08,720
 The raw water, this rate is for wholesale sell of raw water per 1,000 gallons, so this

815
00:46:08,720 --> 00:46:14,540
 is 85% of what the Dallas wholesale rate is, so that rate is currently .758.

816
00:46:14,540 --> 00:46:17,800
 It will stay the same, .758.

817
00:46:17,800 --> 00:46:21,720
 And then the pass through through Lake Chapman, we do have an agreement for this also.

818
00:46:21,720 --> 00:46:26,080
 This one adjusts off the tuned CPI adjuster, so that adjuster did go up.

819
00:46:26,080 --> 00:46:30,580
 Of course, inflation and everything else going on this year, so that rate would go to .0282,

820
00:46:30,580 --> 00:46:32,660
 so that rate would actually increase this year.

821
00:46:32,660 --> 00:46:36,360
 I think last year it stayed the same.

822
00:46:36,360 --> 00:46:37,600
 And then wastewater rate changes.

823
00:46:37,600 --> 00:46:40,760
 We just went ahead and put wastewater in the water presentation because it was just one

824
00:46:40,760 --> 00:46:44,040
 slide so we didn't think we needed a separate presentation.

825
00:46:44,040 --> 00:46:46,960
 These are adjustments to the dino's soil rate.

826
00:46:46,960 --> 00:46:51,120
 These are cost of service adjustments, just using more soil for that product and more

827
00:46:51,120 --> 00:46:52,400
 money we have involved in it.

828
00:46:52,400 --> 00:46:53,880
 So just looking to recoup that cost.

829
00:46:53,880 --> 00:46:59,840
 You can see on the first one, the dino's soil per cubic yard is going from 30 to 35.

830
00:46:59,840 --> 00:47:03,320
 And then if you buy from 10 to 99 yards, you get a 20 percent discount.

831
00:47:03,320 --> 00:47:05,720
 That rate goes from 24 to 28.

832
00:47:05,720 --> 00:47:12,520
 And if you buy 100 plus yards, you get a 40 percent discount going to 18 to 21.

833
00:47:12,520 --> 00:47:13,520
 Question right quick on that.

834
00:47:13,520 --> 00:47:14,520
 Yes, sir.

835
00:47:14,520 --> 00:47:15,520
 It's the volume.

836
00:47:15,520 --> 00:47:20,840
 It was wild that we couldn't give it away as much as we were producing at least in comparison.

837
00:47:20,840 --> 00:47:22,240
 So the prices are going up.

838
00:47:22,240 --> 00:47:27,320
 I assume that means that it's selling a lot better these days, or is it just costing a

839
00:47:27,320 --> 00:47:29,640
 lot more to produce?

840
00:47:29,640 --> 00:47:30,640
 Let me ask.

841
00:47:30,640 --> 00:47:31,640
 Let me ask Stephen.

842
00:47:31,640 --> 00:47:32,640
 He knows about the operations.

843
00:47:32,640 --> 00:47:33,640
 It's not in his head.

844
00:47:33,640 --> 00:47:34,640
 I see that.

845
00:47:34,640 --> 00:47:35,640
 Yes, sir.

846
00:47:35,640 --> 00:47:45,640
 It's been become quite popular and we've actually had to purchase additional sand this

847
00:47:45,640 --> 00:47:48,800
 year to generate more product.

848
00:47:48,800 --> 00:47:51,800
 Is that more commercial use or?

849
00:47:51,800 --> 00:47:55,760
 I can get that number for you, whether the breakdown, whether it's commercial or residential.

850
00:47:55,760 --> 00:48:00,400
 But I think with the pandemic, a lot of folks are staying home and they're really leveraging

851
00:48:00,400 --> 00:48:03,400
 that resource for gardening and stuff as well.

852
00:48:03,400 --> 00:48:04,400
 That's a good general answer.

853
00:48:04,400 --> 00:48:05,920
 That's all I needed to think of.

854
00:48:05,920 --> 00:48:06,920
 And I did.

855
00:48:06,920 --> 00:48:14,840
 If it's okay, you'd ask Tyler, sir, you had asked about the median consumption.

856
00:48:14,840 --> 00:48:22,800
 Looks like residential is about $5,975 and commercial is $11,283.

857
00:48:22,800 --> 00:48:23,800
 That's per bill?

858
00:48:23,800 --> 00:48:24,800
 Yes.

859
00:48:24,800 --> 00:48:25,800
 Okay.

860
00:48:25,800 --> 00:48:26,800
 Thanks.

861
00:48:26,800 --> 00:48:27,800
 All right.

862
00:48:27,800 --> 00:48:32,800
 Let me pull this back up.

863
00:48:32,800 --> 00:48:47,520
 I think we're just about through this presentation.

864
00:48:47,520 --> 00:48:49,320
 This is a table we showed.

865
00:48:49,320 --> 00:48:52,080
 Last year, I just wanted to show it to the PBA again so you can see several different

866
00:48:52,080 --> 00:48:56,280
 fiscal years, what the rate increase or decrease were for the utilities.

867
00:48:56,280 --> 00:49:03,720
 You can see from fiscal year 2015 to fiscal year 2017, the utilities did have rate increases.

868
00:49:03,720 --> 00:49:06,720
 Starting in fiscal year 2018, you can see we had some rate decreases.

869
00:49:06,720 --> 00:49:11,200
 And then this year, I'm not showing any rate decrease, but knowing that if we redo that

870
00:49:11,200 --> 00:49:14,800
 rate structure for the water customers, we would see a decrease for the average customer.

871
00:49:14,800 --> 00:49:18,440
 So I'm not showing that on this slide, but if you do give us that direction, that percentage

872
00:49:18,440 --> 00:49:22,140
 would be built into here.

873
00:49:22,140 --> 00:49:24,760
 So rate recommendation, kind of a recap.

874
00:49:24,760 --> 00:49:28,600
 As I initially said, staff's recommendation for the water rate structure was option two,

875
00:49:28,600 --> 00:49:32,160
 which established the zero to 7,500-gallon tier.

876
00:49:32,160 --> 00:49:35,680
 Definitely if you give us feedback to keep the winter and summer blocks rate structure

877
00:49:35,680 --> 00:49:40,000
 or zero to 5,000, we'll take that forward to council tomorrow.

878
00:49:40,000 --> 00:49:44,080
 Commercial just option one, the regular water rate for commercial customers, not making

879
00:49:44,080 --> 00:49:45,760
 any changes to that.

880
00:49:45,760 --> 00:49:50,640
 The irrigation rate would be combining that winter and summer block structure into one

881
00:49:50,640 --> 00:49:52,360
 combined seasonal rate.

882
00:49:52,360 --> 00:49:56,800
 And then wholesale, just making those adjustments in accordance with the contracts, and then

883
00:49:56,800 --> 00:50:01,480
 wastewater is making those changes to the dino soil rate.

884
00:50:01,480 --> 00:50:03,140
 And then these are additional work sessions.

885
00:50:03,140 --> 00:50:06,680
 If we need to come back to the PV, again, before that approval, we definitely can do

886
00:50:06,680 --> 00:50:07,680
 that.

887
00:50:07,680 --> 00:50:08,680
 Just give us your feedback today.

888
00:50:08,680 --> 00:50:12,280
 We definitely can circle back with some follow-up questions that you had asked today and get

889
00:50:12,280 --> 00:50:13,280
 those back to you.

890
00:50:13,280 --> 00:50:18,560
 So tomorrow, this presentation is not listed here, does go to city council, with the budget

891
00:50:18,560 --> 00:50:21,200
 workshop being next week on August the 2nd.

892
00:50:21,200 --> 00:50:24,440
 So definitely a busy day next August or, you know, on the 2nd.

893
00:50:24,440 --> 00:50:25,800
 So that is it.

894
00:50:25,800 --> 00:50:29,120
 I will pull this down for additional questions if you have some.

895
00:50:29,120 --> 00:50:30,120
 >> One more question.

896
00:50:30,120 --> 00:50:31,120
 What was the hydrant rate?

897
00:50:31,120 --> 00:50:34,120
 I didn't see that in the presentation.

898
00:50:34,120 --> 00:50:35,120
 >> Let me go back.

899
00:50:35,120 --> 00:50:39,320
 >> It was in the budget last presentation for --

900
00:50:39,320 --> 00:50:43,240
 >> And then, Mr. Chief, if you remember last year, we actually did a decrease to the fire

901
00:50:43,240 --> 00:50:44,240
 hydrant rate.

902
00:50:44,240 --> 00:50:46,160
 This year, we're not looking to make any changes to it.

903
00:50:46,160 --> 00:50:47,160
 Just leave it alone.

904
00:50:47,160 --> 00:50:50,600
 It was mentioned earlier as under recovering like $30,000.

905
00:50:50,600 --> 00:50:56,440
 So it's not being adjusted, but it's currently under recovery a little bit, yes.

906
00:50:56,440 --> 00:50:57,440
 >> Okay.

907
00:50:57,440 --> 00:50:58,440
 Questions?

908
00:50:58,440 --> 00:51:03,440
 Or discussion.

909
00:51:03,440 --> 00:51:04,440
 You need a consensus.

910
00:51:04,440 --> 00:51:08,240
 >> I just need a consensus of what direction you would like us to pass along to council

911
00:51:08,240 --> 00:51:10,160
 as we talk about the rate structure.

912
00:51:10,160 --> 00:51:15,200
 >> I was wondering if somebody could repeat the median number that Stephen gave us.

913
00:51:15,200 --> 00:51:20,520
 >> 5,975 is what I heard.

914
00:51:20,520 --> 00:51:28,280
 >> For me, I don't mind merging into one rate, not having a seasonal rate.

915
00:51:28,280 --> 00:51:32,000
 In the past, that used to be something that triggered more conservation, but I'm not so

916
00:51:32,000 --> 00:51:35,440
 sure if that's how it is today.

917
00:51:35,440 --> 00:51:42,040
 I do prefer the zero to 5,000, because I think that would impact conservation more, but now

918
00:51:42,040 --> 00:51:49,760
 that it's the median is 5,975, I guess either way, I would be okay.

919
00:51:49,760 --> 00:51:52,240
 So how about we start with Ben and work around it?

920
00:51:52,240 --> 00:51:58,200
 >> Yeah, I was going to say I'd probably lean to the third option, zero to five, as well.

921
00:51:58,200 --> 00:52:03,880
 Less impact on those up on the top, but still encouraging conservation, as you said.

922
00:52:03,880 --> 00:52:09,960
 I guess it kind of depends on the motivation, in a sense, what we're trying to achieve exactly.

923
00:52:09,960 --> 00:52:10,960
 That's what I would lean toward.

924
00:52:10,960 --> 00:52:11,960
 >> Okay.

925
00:52:11,960 --> 00:52:12,960
 >> Yeah, I would agree.

926
00:52:12,960 --> 00:52:18,880
 I just go for option three, just noting that many people are going to be bumped up to the

927
00:52:18,880 --> 00:52:27,600
 second tier in the summer anyway, so it's almost a de facto change in rate.

928
00:52:27,600 --> 00:52:33,560
 >> I like three also, but that also depends on what the answer is to how we got to this

929
00:52:33,560 --> 00:52:34,560
 lower average.

930
00:52:34,560 --> 00:52:35,560
 >> Okay.

931
00:52:35,560 --> 00:52:36,560
 >> Right.

932
00:52:36,560 --> 00:52:37,560
 >> Got you.

933
00:52:37,560 --> 00:52:42,380
 >> But at the same time, hey, let's try it for a year, see what it does.

934
00:52:42,380 --> 00:52:43,380
 >> Okay.

935
00:52:43,380 --> 00:52:44,380
 >> I agree.

936
00:52:44,380 --> 00:52:51,040
 >> Yeah, I agree, option three, and I just do want to point out the 5,000 to $15,000

937
00:52:51,040 --> 00:52:55,680
 rate is the current zero to $15,000 rate, so it isn't like you're getting-- you only

938
00:52:55,680 --> 00:53:00,320
 get a discount for the first 5,000 and then you pay your normal rate for the next 10.

939
00:53:00,320 --> 00:53:01,320
 >> That's correct.

940
00:53:01,320 --> 00:53:02,320
 >> That's correct.

941
00:53:02,320 --> 00:53:08,960
 >> In terms of the ability of commercial irrigation, I don't have a very strong opinion.

942
00:53:08,960 --> 00:53:16,000
 It seems to me that simplifying to a single rate would make sense, but I don't know if

943
00:53:16,000 --> 00:53:22,920
 that would have a big impact on those users or not, so I would lean to option two, but

944
00:53:22,920 --> 00:53:26,600
 I really don't have enough information to give a strong recommendation.

945
00:53:26,600 --> 00:53:29,600
 >> And did you say these are all revenue neutral for the city?

946
00:53:29,600 --> 00:53:30,600
 >> They are revenue neutral.

947
00:53:30,600 --> 00:53:33,480
 The costs came to you after you approved the budget, so the thought process behind these

948
00:53:33,480 --> 00:53:35,160
 were revenue neutral.

949
00:53:35,160 --> 00:53:38,800
 That cost me passed along to that 11% that those higher tier groups.

950
00:53:38,800 --> 00:53:45,160
 >> So I'd be inclined to agree with you that just to make it simpler if it doesn't impact

951
00:53:45,160 --> 00:53:46,840
 the city at all.

952
00:53:46,840 --> 00:53:49,400
 >> And we do need to get Mr. Reback's opinion.

953
00:53:49,400 --> 00:53:50,400
 Go ahead, Lee.

954
00:53:50,400 --> 00:53:51,400
 >> Thank you.

955
00:53:51,400 --> 00:53:58,360
 Although I do have my concerns about going to the simplified residential rate, as I mentioned

956
00:53:58,360 --> 00:54:04,900
 earlier, I think I would prefer option two over option three, and so that would be my

957
00:54:04,900 --> 00:54:07,040
 reaction to this thus far.

958
00:54:07,040 --> 00:54:12,720
 As far as the commercial and commercial irrigation rates, I think in general simplification is

959
00:54:12,720 --> 00:54:13,720
 good.

960
00:54:13,720 --> 00:54:18,840
 It's clear the commercial customers are paying a pretty hefty bill as it is, and so they

961
00:54:18,840 --> 00:54:25,880
 naturally have a bias and interest in maintaining good control of their irrigation systems.

962
00:54:25,880 --> 00:54:31,000
 So I would vote for option two or recommend option two rather than option three.

963
00:54:31,000 --> 00:54:32,000
 >> Okay.

964
00:54:32,000 --> 00:54:37,280
 I think we have our guidance, and we can circle back with the PEB once we visit with council

965
00:54:37,280 --> 00:54:38,280
 tomorrow.

966
00:54:38,280 --> 00:54:39,280
 >> Thank you.

967
00:54:39,280 --> 00:54:42,280
 >> Definitely bring that back.

968
00:54:42,280 --> 00:54:43,280
 >> Thank you very much.

969
00:54:43,280 --> 00:54:44,280
 You did a good job.

970
00:54:44,280 --> 00:54:45,280
 >> Thank you.

971
00:54:45,280 --> 00:54:47,200
 And I think we have one more presentation for solid waste.

972
00:54:47,200 --> 00:54:48,200
 >> Oh, yes, we do.

973
00:54:48,200 --> 00:54:49,200
 Sorry.

974
00:54:49,200 --> 00:54:50,200
 Thank you.

975
00:54:50,200 --> 00:55:05,960
 >> Okay, so we will go through solid waste, a little bit shorter presentation, not quite

976
00:55:05,960 --> 00:55:09,840
 as many slides, so get started here and changed on me.

977
00:55:09,840 --> 00:55:10,840
 An overview of the presentation.

978
00:55:10,840 --> 00:55:14,360
 So we'll talk about residential rates, commercial, landfill.

979
00:55:14,360 --> 00:55:18,640
 We'll talk about some outside city rates that we're looking to establish this year, and

980
00:55:18,640 --> 00:55:25,440
 talk about the contract rates for the wholesale agreements that we currently have in place.

981
00:55:25,440 --> 00:55:28,720
 So I know there's a lot of data on this slide, so I'll take my time to go through the bullet

982
00:55:28,720 --> 00:55:29,720
 points here.

983
00:55:29,720 --> 00:55:32,880
 The first thing I want to point out is that the residential refuse and recycling customer

984
00:55:32,880 --> 00:55:36,440
 will not see a change in the rate.

985
00:55:36,440 --> 00:55:40,920
 For their refuse and their recycling card, there would be no change to that service.

986
00:55:40,920 --> 00:55:44,760
 Where they would see something, we are looking to discontinue a subscription fee for the

987
00:55:44,760 --> 00:55:46,840
 yard waste and brush collection.

988
00:55:46,840 --> 00:55:50,520
 If you remember a couple of years ago, we actually started a subscription fee for this

989
00:55:50,520 --> 00:55:54,840
 service that was a dollar for craft bags and 50 cents for carts.

990
00:55:54,840 --> 00:55:58,400
 We've had good participation in this program, we're looking to discontinue that rate, it

991
00:55:58,400 --> 00:56:00,120
 is no longer needed.

992
00:56:00,120 --> 00:56:04,400
 So this is a decrease to the revenue, about 80,000, not significant, but we did want to

993
00:56:04,400 --> 00:56:07,720
 point it out to the Public Utilities Board.

994
00:56:07,720 --> 00:56:13,440
 Also just all yard waste must be contained in a craft bag or cart, no plastic bags, just

995
00:56:13,440 --> 00:56:17,720
 wanted to point that out to the people that may be listening online.

996
00:56:17,720 --> 00:56:25,440
 And then brush cut to length, and then we pick up everything set at the curb each week,

997
00:56:25,440 --> 00:56:28,280
 so I just wanted to point that out also.

998
00:56:28,280 --> 00:56:31,680
 And then this is something new, we're looking to initiate this year for residential customers

999
00:56:31,680 --> 00:56:34,340
 as an outside cart fee.

1000
00:56:34,340 --> 00:56:38,520
 So if you have a bag that's sitting outside the cart, those will be logged into the system

1001
00:56:38,520 --> 00:56:44,640
 now and charged at $5 a bag if the PV gives its direction to proceed with that.

1002
00:56:44,640 --> 00:56:47,320
 Operational changes, we want to include this in the slide, just a little bit different

1003
00:56:47,320 --> 00:56:49,120
 format this year.

1004
00:56:49,120 --> 00:56:53,220
 Bulk waste, so we did want to point out that this must be called in, and all material will

1005
00:56:53,220 --> 00:56:56,920
 be collected from the curb once it is called in.

1006
00:56:56,920 --> 00:57:00,560
 And then the last bullet point is the bulk rates for called in material, construction

1007
00:57:00,560 --> 00:57:03,560
 waste, everything extra at the curb at the time of collection.

1008
00:57:03,560 --> 00:57:06,640
 So just wanted to point out those few things.

1009
00:57:06,640 --> 00:57:14,720
 Purchasing yard waste carts for homes that currently don't have the subscription, are

1010
00:57:14,720 --> 00:57:18,120
 they going to distribute the carts, or I guess you'd request a cart?

1011
00:57:18,120 --> 00:57:19,120
 Great question.

1012
00:57:19,120 --> 00:57:22,760
 So there is another fee in the rate ordinance to purchase the cart, it's a one-time cart

1013
00:57:22,760 --> 00:57:23,960
 purchase fee.

1014
00:57:23,960 --> 00:57:24,960
 That would still apply.

1015
00:57:24,960 --> 00:57:28,920
 So if you don't have the service today and you want to get a yard waste cart, you'd still

1016
00:57:28,920 --> 00:57:34,400
 purchase the cart, but you would not have a reoccurring subscription fee for that service.

1017
00:57:34,400 --> 00:57:46,840
 I'm sorry, I want to say the cart fee is $20, yeah, thank you, Eugene.

1018
00:57:46,840 --> 00:58:02,000
 Okay, let me get into the commercial, here we go.

1019
00:58:02,000 --> 00:58:06,600
 So commercial rate recommendations, we are looking to change the pricing structure for

1020
00:58:06,600 --> 00:58:08,960
 the front load and side load service.

1021
00:58:08,960 --> 00:58:14,680
 It's going to result in no rate increase or decrease for the customers, the average customer.

1022
00:58:14,680 --> 00:58:16,360
 And we'll point that out on the next slide for you.

1023
00:58:16,360 --> 00:58:19,960
 And this is mostly associated with cost of service, it gets us closer to that cost of

1024
00:58:19,960 --> 00:58:24,680
 service that was completed about three years ago in the solid waste utility and also aligns

1025
00:58:24,680 --> 00:58:28,440
 with some new software we're looking to implement within this utility and the billing structure

1026
00:58:28,440 --> 00:58:29,440
 and what it can handle.

1027
00:58:29,440 --> 00:58:32,040
 So I wanted to point that out.

1028
00:58:32,040 --> 00:58:38,520
 A couple facts in here, there's 2,700 weekly commercial dumpsters, 104 of those dumpsters

1029
00:58:38,520 --> 00:58:41,920
 will see a decrease in their monthly rate, and I'll point those out to you on the table

1030
00:58:41,920 --> 00:58:42,920
 on the next slide.

1031
00:58:42,920 --> 00:58:48,400
 And it kind of shows you a percentage of how those breakdowns, 34% is retail, 33% schools,

1032
00:58:48,400 --> 00:58:55,320
 9% multifamily and 5% hospital, and then we will look at the rate matrix next.

1033
00:58:55,320 --> 00:58:58,920
 So there's a lot of numbers, and I'll take my time to walk you through here.

1034
00:58:58,920 --> 00:59:02,680
 So the current rate structure that's in place is this first table.

1035
00:59:02,680 --> 00:59:07,160
 You can see a three cubic yard that's currently being dumped one time a week, that's what

1036
00:59:07,160 --> 00:59:10,680
 this one X means, is $74.16.

1037
00:59:10,680 --> 00:59:16,260
 If that dumpster gets dumped two times a week, the rate would be 148.32.

1038
00:59:16,260 --> 00:59:22,480
 So basically, it's a common denominator or common multiplier as you go out, but the issue

1039
00:59:22,480 --> 00:59:27,240
 is when you get over here to this box on the left-hand side, so 74.16 is that common number,

1040
00:59:27,240 --> 00:59:29,120
 which is the one three times a week.

1041
00:59:29,120 --> 00:59:35,640
 If you times it times two, you get 148.32, if you times it times three, you get 228.48,

1042
00:59:35,640 --> 00:59:39,440
 you see that right here, but when you times it times four and you get to that four time

1043
00:59:39,440 --> 00:59:45,080
 a week service, it's 296.64 by multiplying it, but when you look at the four times a

1044
00:59:45,080 --> 00:59:48,880
 week in the box that's currently proposed, it's 311.52.

1045
00:59:48,880 --> 00:59:52,560
 So from a cost of service standpoint, when you get into that four time a week collection,

1046
00:59:52,560 --> 00:59:58,600
 and from a billing standpoint of having that common multiplier to handle it in that software

1047
00:59:58,600 --> 01:00:02,480
 is a great thing for staff and reduces that staff time involved with it.

1048
01:00:02,480 --> 01:00:07,240
 So if we did this, anything greater than four times a week, so four times a week, five times

1049
01:00:07,240 --> 01:00:11,380
 a week, or six times a week, those customers would actually see a decrease.

1050
01:00:11,380 --> 01:00:15,760
 So those rates would decrease, you can see that number down here in this bottom box.

1051
01:00:15,760 --> 01:00:22,400
 So for four times a week, it'd go down $14.88, five times a week it'd be $37.95, and of course

1052
01:00:22,400 --> 01:00:26,680
 six times a week it's $70.20, and then you can see the rest of the rates there.

1053
01:00:26,680 --> 01:00:32,000
 Does anybody have any questions on the, let me pull this down, yes sir.

1054
01:00:32,000 --> 01:00:35,680
 Was there a reason for the rate change for four times and greater?

1055
01:00:35,680 --> 01:00:44,000
 So previously, you know, I think it was meant to incentivize people to upsize their container,

1056
01:00:44,000 --> 01:00:47,360
 so instead of you being on that street four or five times a week, maybe being there twice

1057
01:00:47,360 --> 01:00:51,640
 a week, but you would increase from a six to an eight kbqr container, so that was the

1058
01:00:51,640 --> 01:00:52,640
 reasoning behind it.

1059
01:00:52,640 --> 01:00:56,480
 Before, the recommendation now with staff is to align it with cost of service to get

1060
01:00:56,480 --> 01:01:01,840
 it closer to cost of service, and your one to three time a week customers are currently

1061
01:01:01,840 --> 01:01:05,800
 within that range or a little bit under recovering, but anything over four times a week are currently

1062
01:01:05,800 --> 01:01:06,800
 under recovering.

1063
01:01:06,800 --> 01:01:10,800
 So the process before, you know, bringing it forward to you was to get it closer, align

1064
01:01:10,800 --> 01:01:14,120
 with the cost of service model, and actually accommodate that new software we're looking

1065
01:01:14,120 --> 01:01:15,120
 to implement.

1066
01:01:15,120 --> 01:01:22,720
 Would that necessitate any increase to kind of make up the difference, increase in kind

1067
01:01:22,720 --> 01:01:25,840
 of the constant rate otherwise?

1068
01:01:25,840 --> 01:01:27,320
 Like the one time a week rates?

1069
01:01:27,320 --> 01:01:31,080
 Well, so I'm just saying if we're going to lose money on the top end, do we want to make

1070
01:01:31,080 --> 01:01:32,920
 that up on the bottom end?

1071
01:01:32,920 --> 01:01:33,920
 If that's the direction...

1072
01:01:33,920 --> 01:01:34,920
 You didn't propose that, so I was asking...

1073
01:01:34,920 --> 01:01:37,880
 If that's the direction you give us, I will tell you the majority of the small businesses

1074
01:01:37,880 --> 01:01:43,520
 within the community are the one time a week customers, and probably 70% of the cans or

1075
01:01:43,520 --> 01:01:44,520
 so.

1076
01:01:44,520 --> 01:01:45,520
 So I just wanted to make sure to point that out.

1077
01:01:45,520 --> 01:01:46,520
 That's kind of what I was asking.

1078
01:01:46,520 --> 01:01:47,520
 Absolutely.

1079
01:01:47,520 --> 01:01:48,520
 Yeah.

1080
01:01:48,520 --> 01:01:49,520
 Okay.

1081
01:01:49,520 --> 01:01:50,520
 Okay.

1082
01:01:50,520 --> 01:02:03,920
 I will proceed along.

1083
01:02:03,920 --> 01:02:05,960
 This is the recycling structure.

1084
01:02:05,960 --> 01:02:06,960
 You can see it here.

1085
01:02:06,960 --> 01:02:10,640
 I won't walk you through all the numbers again, but same concept as we reviewed on the refuse

1086
01:02:10,640 --> 01:02:14,960
 size or refuse side, so you can see the current rate structure that's in place.

1087
01:02:14,960 --> 01:02:18,520
 For a three cubic yard, one time a week is $63.78.

1088
01:02:18,520 --> 01:02:21,080
 That rate is less than the refuse rate.

1089
01:02:21,080 --> 01:02:24,000
 The reason behind that is, of course, when you're doing it from a cost of service standpoint,

1090
01:02:24,000 --> 01:02:27,160
 it removes the disposable component of the rate.

1091
01:02:27,160 --> 01:02:30,120
 So this rate is lower, and we talked about this a couple of fiscal years ago.

1092
01:02:30,120 --> 01:02:33,320
 Just wanted to make sure I pointed that out to the PB members.

1093
01:02:33,320 --> 01:02:34,320
 So propose.

1094
01:02:34,320 --> 01:02:38,480
 What we're proposing to do would start in the two time a week, four cubic yard container,

1095
01:02:38,480 --> 01:02:40,840
 and you can see what that would do in the very bottom.

1096
01:02:40,840 --> 01:02:45,000
 So for example, if you had a customer that was five times a week, and they had a four

1097
01:02:45,000 --> 01:02:49,680
 cubic yard container, they would see a decrease of $43.50 a month.

1098
01:02:49,680 --> 01:02:55,240
 But anybody in the one time a week, three cubic yard, or four, six, or eight, would

1099
01:02:55,240 --> 01:02:58,040
 not see any change in the structure.

1100
01:02:58,040 --> 01:02:59,040
 Question.

1101
01:02:59,040 --> 01:03:06,640
 So this will still encourage to recycle more, because this is lower than throwing it away,

1102
01:03:06,640 --> 01:03:08,040
 which is really important.

1103
01:03:08,040 --> 01:03:12,880
 It's actually being lower than what we have in place now.

1104
01:03:12,880 --> 01:03:16,480
 So if you had recycling containers being picked up every single day, you'd actually get a

1105
01:03:16,480 --> 01:03:17,480
 break on that container.

1106
01:03:17,480 --> 01:03:18,480
 Absolutely.

1107
01:03:18,480 --> 01:03:19,480
 Five days a week.

1108
01:03:19,480 --> 01:03:20,480
 Yeah.

1109
01:03:20,480 --> 01:03:21,480
 Absolutely.

1110
01:03:21,480 --> 01:03:22,480
 Thank you.

1111
01:03:22,480 --> 01:03:23,480
 I wanted to point that out.

1112
01:03:23,480 --> 01:03:24,480
 Yeah.

1113
01:03:24,480 --> 01:03:25,480
 It was great.

1114
01:03:25,480 --> 01:03:26,480
 Okay.

1115
01:03:26,480 --> 01:03:29,480
 Let me see here.

1116
01:03:29,480 --> 01:03:35,480
 There it goes.

1117
01:03:35,480 --> 01:03:36,480
 Okay.

1118
01:03:36,480 --> 01:03:38,520
 Great recommendations for the landfill.

1119
01:03:38,520 --> 01:03:41,040
 We have brought this back to you a couple years now.

1120
01:03:41,040 --> 01:03:46,160
 The sludge disposal rate, we do see this material continue to come into the landfill.

1121
01:03:46,160 --> 01:03:48,120
 That current rate is currently $50 a ton.

1122
01:03:48,120 --> 01:03:50,960
 We are looking to increase that to $60 a ton.

1123
01:03:50,960 --> 01:03:55,200
 Is the cost of handling that material, it is difficult to handle.

1124
01:03:55,200 --> 01:03:59,440
 Annual revenue increase associated with this is $82,000, which basically offsets some of

1125
01:03:59,440 --> 01:04:03,800
 that decrease we saw on that subscription fee earlier in the presentation.

1126
01:04:03,800 --> 01:04:08,840
 Match the new brush rate of $35 a ton for non-city and customers to something that staff

1127
01:04:08,840 --> 01:04:09,840
 is proposing.

1128
01:04:09,840 --> 01:04:12,900
 If you do not live within the city limits.

1129
01:04:12,900 --> 01:04:17,480
 Change the unbagged brush weight from 20 to 25 to match the minimum load rate.

1130
01:04:17,480 --> 01:04:21,360
 So currently if you come into the landfill and you have less than a ton, you pay a minimum

1131
01:04:21,360 --> 01:04:22,360
 of $25.

1132
01:04:22,360 --> 01:04:26,080
 We're just looking to make that consistent across the board.

1133
01:04:26,080 --> 01:04:29,780
 And then operational changes, so residential gate verification.

1134
01:04:29,780 --> 01:04:32,880
 We are looking to implement something that customers do need to verify.

1135
01:04:32,880 --> 01:04:36,120
 Their proof of residency when they come to the landfill and come to the weigh station

1136
01:04:36,120 --> 01:04:37,120
 to weigh in.

1137
01:04:37,120 --> 01:04:39,480
 And that could be simply a utility bill.

1138
01:04:39,480 --> 01:04:42,840
 I'm looking to bring that forward this year.

1139
01:04:42,840 --> 01:04:47,080
 I thought you had to do that anyway.

1140
01:04:47,080 --> 01:04:49,320
 I thought you had to show proof.

1141
01:04:49,320 --> 01:04:50,760
 No ma'am, not currently.

1142
01:04:50,760 --> 01:04:51,760
 No you.

1143
01:04:51,760 --> 01:04:52,760
 Sorry.

1144
01:04:52,760 --> 01:04:53,760
 Yeah.

1145
01:04:53,760 --> 01:04:58,180
 Yeah, once we establish a non-city rate, if we get that guidance from you, we would just

1146
01:04:58,180 --> 01:05:01,200
 require that verification when they come to the window to make sure they're getting billed

1147
01:05:01,200 --> 01:05:03,160
 at the appropriate rate.

1148
01:05:03,160 --> 01:05:04,160
 Yeah, absolutely.

1149
01:05:04,160 --> 01:05:06,000
 But there's no verification currently.

1150
01:05:06,000 --> 01:05:15,760
 So regarding this as showing a utility bill, that's going to be a lot of extra steps.

1151
01:05:15,760 --> 01:05:21,300
 I mean, I've used the landfill several times in the past few years and they currently collect

1152
01:05:21,300 --> 01:05:22,300
 driver's license.

1153
01:05:22,300 --> 01:05:25,160
 Can we not just base it on zip code?

1154
01:05:25,160 --> 01:05:31,000
 I know there might be a very small number of people that are in the city but out of

1155
01:05:31,000 --> 01:05:33,400
 the service area or something like that.

1156
01:05:33,400 --> 01:05:38,000
 But it seems like the amount of effort to make sure I don't even have -- I only have

1157
01:05:38,000 --> 01:05:41,040
 electric -- I mean, electronic bills.

1158
01:05:41,040 --> 01:05:46,760
 So for me to show a utility bill, I guess I'll have to log in on my phone and pull it

1159
01:05:46,760 --> 01:05:49,920
 up while sitting there at the weigh station.

1160
01:05:49,920 --> 01:05:51,600
 So our Deputy Director, Eugene, is here.

1161
01:05:51,600 --> 01:05:55,320
 He can talk to that and talk to some of the reasons why we're proposing a utility bill

1162
01:05:55,320 --> 01:05:56,320
 really quick.

1163
01:05:56,320 --> 01:05:59,320
 Let me ask him to come up.

1164
01:05:59,320 --> 01:06:01,200
 Good morning.

1165
01:06:01,200 --> 01:06:02,200
 Good morning.

1166
01:06:02,200 --> 01:06:05,920
 Well, this is -- there's been some discussion, ongoing discussion for a while.

1167
01:06:05,920 --> 01:06:11,560
 You know, we have a lot of customers within the city and without -- outside the city limits

1168
01:06:11,560 --> 01:06:14,560
 that come in and we really have no way of distinguishing who's who.

1169
01:06:14,560 --> 01:06:19,480
 To your point, you could receive one service but not another service, would you thought

1170
01:06:19,480 --> 01:06:24,440
 that this would help us in creating that external rate to kind of verify who actually lives

1171
01:06:24,440 --> 01:06:25,440
 in the boundaries?

1172
01:06:25,440 --> 01:06:29,920
 The same product in that's outside of these boundaries.

1173
01:06:29,920 --> 01:06:35,760
 So via an electric bill, via sometimes your driver's license, I mean, of course there

1174
01:06:35,760 --> 01:06:38,480
 won't be a situation where you show a driver's license and we'll go and look and see where

1175
01:06:38,480 --> 01:06:39,480
 this is.

1176
01:06:39,480 --> 01:06:43,080
 But we thought an electric bill would be the most convenient process.

1177
01:06:43,080 --> 01:06:46,680
 But again, it's based on the direction and guidance we get here.

1178
01:06:46,680 --> 01:06:49,720
 You know, we can be further discussion based on your guidance.

1179
01:06:49,720 --> 01:06:55,420
 Yeah, I mean, I like the sentiment of it, you know, like we've already paid taxes to

1180
01:06:55,420 --> 01:06:56,420
 support the landfill.

1181
01:06:56,420 --> 01:07:00,040
 We've done all these other things for the last 50 years to build that landfill.

1182
01:07:00,040 --> 01:07:02,840
 So we should take advantage of the rates.

1183
01:07:02,840 --> 01:07:09,240
 But I just worry about the actual remembering to take your bill or like, you know, I don't

1184
01:07:09,240 --> 01:07:12,280
 get a paper bill so I have to pull it up on my phone or I have to print a paper copy if

1185
01:07:12,280 --> 01:07:16,320
 they -- because I remember there's a lot of -- I have to like hand them paperwork and

1186
01:07:16,320 --> 01:07:18,880
 they keep it and then I get it on the way back out.

1187
01:07:18,880 --> 01:07:23,040
 So if I have to take a paper bill, it would be several more steps before I could go to

1188
01:07:23,040 --> 01:07:24,040
 the landfill.

1189
01:07:24,040 --> 01:07:27,480
 But I just wonder if there's a -- And keep in mind there are several things

1190
01:07:27,480 --> 01:07:31,520
 going on in the environment that we really -- the city of Denton and our customers who

1191
01:07:31,520 --> 01:07:33,400
 enjoy Cadillac service just can't control.

1192
01:07:33,400 --> 01:07:37,160
 You have other landfills who are decreasing the input, I mean, what they're taking in.

1193
01:07:37,160 --> 01:07:41,080
 So a lot of that is coming from us way out of the areas, way out of the areas.

1194
01:07:41,080 --> 01:07:44,960
 So that's another measure to get this kind of control and look at where the landscape

1195
01:07:44,960 --> 01:07:45,960
 of where this is coming from.

1196
01:07:45,960 --> 01:07:50,320
 Again, based on your direction, we thought the utility bill would kind of give some good

1197
01:07:50,320 --> 01:07:54,240
 points and a good sense of direction of where it's actually coming from.

1198
01:07:54,240 --> 01:07:57,160
 Yeah, and I just wish like something -- something that everybody already carries is something

1199
01:07:57,160 --> 01:07:58,520
 like a driver's license.

1200
01:07:58,520 --> 01:08:06,160
 So if it could be based on zip code or city or -- I don't know what the amount of labor

1201
01:08:06,160 --> 01:08:12,200
 there already is at the way station in, you know, looking at last name and street address,

1202
01:08:12,200 --> 01:08:13,680
 that might be too onerous.

1203
01:08:13,680 --> 01:08:14,680
 Right.

1204
01:08:14,680 --> 01:08:17,920
 Because there's already long lines to get in, especially, you know, weekends and stuff

1205
01:08:17,920 --> 01:08:18,920
 like that.

1206
01:08:18,920 --> 01:08:23,320
 So I just want to streamline that process while also, you know --

1207
01:08:23,320 --> 01:08:29,480
 You know, working in several municipal organizations, what I've seen work well is when new programs

1208
01:08:29,480 --> 01:08:35,680
 like this come on board, we encourage customers to print their utility bill and kind of just

1209
01:08:35,680 --> 01:08:39,400
 store it in like a registration or something in the car.

1210
01:08:39,400 --> 01:08:42,140
 So whenever you do come through the landfill, you have it available.

1211
01:08:42,140 --> 01:08:45,880
 So it won't be a situation where you've got to pull it up each time, you know, once you

1212
01:08:45,880 --> 01:08:49,840
 verify at the line that this is what it is, and you put it back in your glove box and

1213
01:08:49,840 --> 01:08:50,840
 kind of just keep moving forward.

1214
01:08:50,840 --> 01:08:54,000
 So the next time you come through, it's always available.

1215
01:08:54,000 --> 01:08:56,040
 Put it next to your proof of insurance.

1216
01:08:56,040 --> 01:08:57,040
 Yes.

1217
01:08:57,040 --> 01:08:58,040
 Yes.

1218
01:08:58,040 --> 01:08:59,040
 I've seen those -- I've seen those be very successful.

1219
01:08:59,040 --> 01:09:04,600
 I haven't seen my utility bill in several years, so I don't know my log -- as long as you guys

1220
01:09:04,600 --> 01:09:08,760
 are getting paid, everybody's satisfied, don't get me wrong, but it's just -- it's not something

1221
01:09:08,760 --> 01:09:14,240
 that I have readily available, but it's not an either/or thing for you guys.

1222
01:09:14,240 --> 01:09:16,080
 It's just that only, right?

1223
01:09:16,080 --> 01:09:20,600
 Well, again, we want to make sure that -- we're just trying to kind of put a circle around

1224
01:09:20,600 --> 01:09:24,800
 this and what's coming in versus what's in our -- you know, let's say -- let's include

1225
01:09:24,800 --> 01:09:28,520
 it in our Cadillac service for our city of Denny residents and what's coming from well

1226
01:09:28,520 --> 01:09:30,160
 outside the city.

1227
01:09:30,160 --> 01:09:34,960
 I'm curious, how many people of their driver's license says Denton, Texas, but they're really

1228
01:09:34,960 --> 01:09:37,440
 not in the city limits?

1229
01:09:37,440 --> 01:09:39,560
 Is it a big number?

1230
01:09:39,560 --> 01:09:40,560
 Do we know?

1231
01:09:40,560 --> 01:09:50,880
 If the vast majority really are Denton citizens, maybe that's good enough.

1232
01:09:50,880 --> 01:09:51,880
 I don't know.

1233
01:09:51,880 --> 01:09:52,880
 It's just a thought.

1234
01:09:52,880 --> 01:09:58,200
 You know, we're accustomed to keeping our insurance card in our glove box.

1235
01:09:58,200 --> 01:09:59,200
 Yes.

1236
01:09:59,200 --> 01:10:02,800
 How difficult would it be to add a utility bill?

1237
01:10:02,800 --> 01:10:03,800
 One utility bill.

1238
01:10:03,800 --> 01:10:06,320
 My insurance is digital also, actually, so.

1239
01:10:06,320 --> 01:10:08,040
 What's that then?

1240
01:10:08,040 --> 01:10:10,720
 I have everything, much like Devin was just saying, everything's digital.

1241
01:10:10,720 --> 01:10:12,800
 My car insurance is on an app on my phone.

1242
01:10:12,800 --> 01:10:13,800
 Yeah, I have that too.

1243
01:10:13,800 --> 01:10:14,800
 My utility bill's online.

1244
01:10:14,800 --> 01:10:19,160
 You know, I don't have papers in my glove box, really.

1245
01:10:19,160 --> 01:10:21,960
 Could I use a year old utility bill to go to the landfill?

1246
01:10:21,960 --> 01:10:22,960
 Right.

1247
01:10:22,960 --> 01:10:27,160
 I mean, it sounds like we almost want like a proof of residency certificate or something

1248
01:10:27,160 --> 01:10:28,160
 that's good for a year.

1249
01:10:28,160 --> 01:10:29,160
 You renew it every year.

1250
01:10:29,160 --> 01:10:34,120
 I mean, I don't know, but -- Well, it seems like what's important is that

1251
01:10:34,120 --> 01:10:39,400
 we're paying our utility bills, not necessarily that we're living full time in Denton.

1252
01:10:39,400 --> 01:10:43,960
 I mean, somebody might have a summer house and they still would be eligible for the residential

1253
01:10:43,960 --> 01:10:44,960
 rate.

1254
01:10:44,960 --> 01:10:52,520
 So what might be the pertinent piece of information is are we contributing through our utility

1255
01:10:52,520 --> 01:10:54,960
 bills to the city?

1256
01:10:54,960 --> 01:11:00,000
 So it seems to me that the utility bill would be the relevant piece of information.

1257
01:11:00,000 --> 01:11:01,000
 Right.

1258
01:11:01,000 --> 01:11:02,000
 Yeah.

1259
01:11:02,000 --> 01:11:06,760
 If people spend half the year up in Wyoming or whatever, they still would be eligible

1260
01:11:06,760 --> 01:11:09,280
 for residential rate.

1261
01:11:09,280 --> 01:11:10,280
 And that's exactly right.

1262
01:11:10,280 --> 01:11:14,480
 So I kind of look at it like, you know, when the program starts, you know, we put the effort

1263
01:11:14,480 --> 01:11:18,360
 and time in the city and the customer up front, almost like the airplane thing.

1264
01:11:18,360 --> 01:11:20,040
 You use most of your energy getting there.

1265
01:11:20,040 --> 01:11:24,600
 Maybe it's logging in, collecting your information, and then at one time, you know, you print it,

1266
01:11:24,600 --> 01:11:29,200
 and then you got it for safekeeping when you do come through the landfill.

1267
01:11:29,200 --> 01:11:34,840
 Eugene, so if a customer shows up without the utility bill, you're not going to turn

1268
01:11:34,840 --> 01:11:35,840
 them away, right?

1269
01:11:35,840 --> 01:11:36,840
 Well, currently we don't.

1270
01:11:36,840 --> 01:11:40,360
 It's just, you know, shows them some identification and they come on through.

1271
01:11:40,360 --> 01:11:44,280
 So the concept would be here though, going forward though, if they show up with no bill

1272
01:11:44,280 --> 01:11:47,880
 approved for residency, will you charge them the non-resident rate?

1273
01:11:47,880 --> 01:11:53,960
 And that's a good question, and that seems practical that they're charged a non-resident

1274
01:11:53,960 --> 01:11:54,960
 rate.

1275
01:11:54,960 --> 01:11:59,760
 The other thing I'll mention to the PAB just to consider is that, I mean, when you talk

1276
01:11:59,760 --> 01:12:03,320
 about a government-issued ID, like a driver's license, you're going to have folks out there

1277
01:12:03,320 --> 01:12:07,360
 that do not have those, and that brings up a whole other different discussion.

1278
01:12:07,360 --> 01:12:08,360
 Correct.

1279
01:12:08,360 --> 01:12:12,320
 So I would just, I think that's probably the reasoning here, why the staff is kind of erring

1280
01:12:12,320 --> 01:12:17,680
 on the side of the utility bill, as much of an inconvenience as it might be, and you do

1281
01:12:17,680 --> 01:12:20,760
 bring up a good point about, does it have to be within 12 months?

1282
01:12:20,760 --> 01:12:25,480
 You know, let's say I just took my daughter to get her driver's permit and almost got

1283
01:12:25,480 --> 01:12:31,000
 turned away after having driven four hours away to get her a driver's license permit.

1284
01:12:31,000 --> 01:12:33,120
 Thank goodness it was somebody that was reasonable.

1285
01:12:33,120 --> 01:12:37,880
 I think the long story here is I think the staff at the gate will be reasonable, will

1286
01:12:37,880 --> 01:12:40,480
 accommodate folks just like we do today.

1287
01:12:40,480 --> 01:12:45,440
 That will not change, but I think that the practical nature is that probably makes the

1288
01:12:45,440 --> 01:12:48,960
 most sense, and we're not going to turn people away, just like you may end up having to pay

1289
01:12:48,960 --> 01:12:54,280
 the higher non-resident rate until you can prove that you are a resident.

1290
01:12:54,280 --> 01:12:55,280
 That's a really good point.

1291
01:12:55,280 --> 01:12:56,280
 Yeah, really good.

1292
01:12:56,280 --> 01:12:57,280
 Yes.

1293
01:12:57,280 --> 01:13:02,080
 I mean, if you drive up in a truck that says Adam's Exterminating on the side, I mean,

1294
01:13:02,080 --> 01:13:04,120
 they're going to let him through, right?

1295
01:13:04,120 --> 01:13:06,000
 Mr. Rybeck has a question.

1296
01:13:06,000 --> 01:13:07,000
 Go ahead, Lee.

1297
01:13:07,000 --> 01:13:08,000
 I just wanted to comment.

1298
01:13:08,000 --> 01:13:09,000
 I think we're making a little too much out of this.

1299
01:13:09,000 --> 01:13:14,000
 I think once the person is gone, didn't have a utility bill copy, they'll make one, put

1300
01:13:14,000 --> 01:13:21,520
 it in their glove box the next time they have it, and they won't want it, because who wants

1301
01:13:21,520 --> 01:13:25,320
 to pay the higher rate or pay the rate at all if necessary?

1302
01:13:25,320 --> 01:13:28,880
 So I think we're making a little too much out of this, and I don't think it would be

1303
01:13:28,880 --> 01:13:33,640
 a huge inconvenience once people get used to having a utility bill in their glove box,

1304
01:13:33,640 --> 01:13:39,040
 and even if they have to take one up for that, you know, print it so that we have it, I think

1305
01:13:39,040 --> 01:13:40,040
 it's that big a deal.

1306
01:13:40,040 --> 01:13:41,040
 So those are my two cents.

1307
01:13:41,040 --> 01:13:42,040
 Thank you.

1308
01:13:42,040 --> 01:13:43,040
 Thank you.

1309
01:13:43,040 --> 01:13:44,040
 Great feedback.

1310
01:13:44,040 --> 01:13:57,760
 Let me get this pulled up again.

1311
01:13:57,760 --> 01:14:01,760
 Okay.

1312
01:14:01,760 --> 01:14:06,320
 So the next thing we want to talk to the PUB about is an outside-of-the-city-denton rate

1313
01:14:06,320 --> 01:14:07,520
 for residential customers.

1314
01:14:07,520 --> 01:14:12,560
 We currently do have some customers that are serviced at the residential department or

1315
01:14:12,560 --> 01:14:15,440
 residential trucks that have carts that are outside the city limits.

1316
01:14:15,440 --> 01:14:18,280
 These customers could be in the ETJ.

1317
01:14:18,280 --> 01:14:21,320
 Currently they're paying the same rate as someone that lives inside the city limits,

1318
01:14:21,320 --> 01:14:24,520
 and some of these customers are quite a ways out.

1319
01:14:24,520 --> 01:14:27,440
 So I just want to establish a new rate is what staff's recommending.

1320
01:14:27,440 --> 01:14:30,720
 Let me walk you through what those rates would be.

1321
01:14:30,720 --> 01:14:34,960
 Inside-of-the-city-denton customers for a 64-gallon cart, which is our smallest cart,

1322
01:14:34,960 --> 01:14:35,960
 is $20.51.

1323
01:14:35,960 --> 01:14:42,280
 The 96-gallon cart, which is the largest cart, is $25.04 if you live within the city of Denton

1324
01:14:42,280 --> 01:14:44,480
 or city limits.

1325
01:14:44,480 --> 01:14:47,840
 Outside-of-the-city limits, we are looking to increase these based on the cost of service

1326
01:14:47,840 --> 01:14:51,120
 study that was completed this year as part of the budgeting process.

1327
01:14:51,120 --> 01:14:55,400
 There is currently a $10 spread in between what current customers are paying on the 64-gallon

1328
01:14:55,400 --> 01:14:57,320
 cart and what we're proposing.

1329
01:14:57,320 --> 01:15:01,440
 So you can see we're proposing $30.69.

1330
01:15:01,440 --> 01:15:06,920
 For a 96-gallon cart, we're proposing $32, and just leaving the extra cart the same just

1331
01:15:06,920 --> 01:15:10,720
 because that trip fee and everything is already built in there, that cost.

1332
01:15:10,720 --> 01:15:17,720
 So customers, how many customers are currently on this bill is about 214, so about 214 customers

1333
01:15:17,720 --> 01:15:29,440
 will see an increase.

1334
01:15:29,440 --> 01:15:34,000
 Rate recommendations for the contracted waste agreements, we'll go through the table in

1335
01:15:34,000 --> 01:15:35,000
 just a second.

1336
01:15:35,000 --> 01:15:36,000
 I want to point out a couple things.

1337
01:15:36,000 --> 01:15:40,240
 So the agreements will end in fiscal year 2023, so do anticipate those conversations

1338
01:15:40,240 --> 01:15:46,020
 to come back forward to you in the coming year before those agreements expire.

1339
01:15:46,020 --> 01:15:50,240
 And then, of course, the proforma anticipates them going away in 2023.

1340
01:15:50,240 --> 01:15:55,560
 It equates to about $6.5 million in revenue a year, and of course, we're looking to adjust

1341
01:15:55,560 --> 01:15:59,200
 these prices based on the consumer price index as called out in the contract.

1342
01:15:59,200 --> 01:16:02,080
 So that adjustment is 4.5%.

1343
01:16:02,080 --> 01:16:05,440
 You can see who those agreements are with in the table, so you can see Wise County,

1344
01:16:05,440 --> 01:16:11,280
 Frontier Waste, Little Lamb, the City of Little Lamb, Waste Connections, Republic, and CWD,

1345
01:16:11,280 --> 01:16:14,880
 and what their current rate is and the current fiscal year is listed here in this column,

1346
01:16:14,880 --> 01:16:18,120
 and what's proposed is down here in this very far right column.

1347
01:16:18,120 --> 01:16:22,520
 The contracted tons that you see are those tons specified in that contract that they

1348
01:16:22,520 --> 01:16:30,400
 will bring into this facility each year, so that is the minimum.

1349
01:16:30,400 --> 01:16:35,720
 I don't want to get into this discussion too far here, because it's way too late to bring

1350
01:16:35,720 --> 01:16:40,480
 up outside tonnage.

1351
01:16:40,480 --> 01:16:42,320
 We've had this discussion for years.

1352
01:16:42,320 --> 01:16:48,640
 Yes, it helps our rates tremendously, I realize that, but you have to, I mean, I plan on dying

1353
01:16:48,640 --> 01:16:54,080
 in this city, so I'm worried about my long-term rates not even being available anymore because

1354
01:16:54,080 --> 01:16:56,080
 we won't have a landfill.

1355
01:16:56,080 --> 01:17:02,560
 So some time after this budget cycle, I would like to see that as a new discussion.

1356
01:17:02,560 --> 01:17:06,280
 Yeah, absolutely, and we'll make sure Brian, Eugene's here for those conversations, and

1357
01:17:06,280 --> 01:17:09,840
 I think Tony mentioned earlier, there's always comprehensive plans, so we can talk about

1358
01:17:09,840 --> 01:17:12,080
 all that stuff as we continue throughout the year.

1359
01:17:12,080 --> 01:17:18,360
 I had that question too, of what I understand it's nice to have the income, but how do you

1360
01:17:18,360 --> 01:17:25,680
 weigh that against the landfill and how much quicker it fills up when we let outside come

1361
01:17:25,680 --> 01:17:26,680
 in?

1362
01:17:26,680 --> 01:17:29,160
 Absolutely, yeah, and I think that's part of those future conversations.

1363
01:17:29,160 --> 01:17:33,120
 We come back to you and say, "Hey, do we want to renew these agreements?"

1364
01:17:33,120 --> 01:17:37,880
 I think that's an important part of the conversation is, if we do, what does that equate to as

1365
01:17:37,880 --> 01:17:41,240
 life expectancy of the landfill, or how much sooner would it be full?

1366
01:17:41,240 --> 01:17:44,880
 We definitely can talk to you about that with Brian, yeah, absolutely.

1367
01:17:44,880 --> 01:17:51,820
 Along the same lines, like when we had that discussion, the rationalization of these rates,

1368
01:17:51,820 --> 01:17:58,420
 because there's a 20% difference between a customer with 2,000 tons and a customer with

1369
01:17:58,420 --> 01:18:05,800
 3,000 tons, and we have to figure out what the value is, but the value of our landfill

1370
01:18:05,800 --> 01:18:11,960
 and the space in our landfill, and make sure that if we suddenly are gaining customers,

1371
01:18:11,960 --> 01:18:17,440
 that means we're under the market cost and we're undervaluing our landfill and our airspace,

1372
01:18:17,440 --> 01:18:23,960
 so just all of that wrapped up together if we do a work session on this in the future.

1373
01:18:23,960 --> 01:18:27,960
 I'm assuming that's all covered in the comprehensive solid waste plan.

1374
01:18:27,960 --> 01:18:38,160
 I don't know, it is, Eugene, okay, it is covered in the comprehensive plan.

1375
01:18:38,160 --> 01:18:43,080
 Just one slide is all I have left, and we'll be okay with this one.

1376
01:18:43,080 --> 01:18:47,560
 So just next steps, I went over these earlier, and this presentation, summer to water, we'll

1377
01:18:47,560 --> 01:18:51,440
 go forward to council tomorrow, the budget workshop on August the 2nd.

1378
01:18:51,440 --> 01:18:55,680
 Coming back to PEB on August the 23rd, of course, we'll follow up with you on the guidance

1379
01:18:55,680 --> 01:18:59,560
 we get from city council tomorrow regarding the rate structure prior to that approval,

1380
01:18:59,560 --> 01:19:05,040
 and then the budget tax rate and everything is adopted on September 21st, so that concludes

1381
01:19:05,040 --> 01:19:09,220
 this solid waste presentation.

1382
01:19:09,220 --> 01:19:10,800
 So you need guidance from us?

1383
01:19:10,800 --> 01:19:11,800
 Yes, ma'am.

1384
01:19:11,800 --> 01:19:14,800
 Yes, ma'am, guidance, or if you would like to do something different than what we're

1385
01:19:14,800 --> 01:19:16,560
 proposing in this presentation?

1386
01:19:16,560 --> 01:19:19,520
 I'm good with what's being proposed.

1387
01:19:19,520 --> 01:19:20,520
 Anybody?

1388
01:19:20,520 --> 01:19:22,520
 Yeah, thumbs up.

1389
01:19:22,520 --> 01:19:23,520
 Everybody's good?

1390
01:19:23,520 --> 01:19:24,520
 Okay.

1391
01:19:24,520 --> 01:19:25,520
 All right.

1392
01:19:25,520 --> 01:19:27,320
 Well, that concludes the agenda.

1393
01:19:27,320 --> 01:19:29,080
 Do we have a motion to adjourn?

1394
01:19:29,080 --> 01:19:30,080
 We'll move.

1395
01:19:30,080 --> 01:19:31,080
 Thank you, Billy.

1396
01:19:31,080 --> 01:19:32,080
 We adjourned.

1397
01:19:32,080 --> 01:19:33,080
 We are adjourned.

1398
01:19:33,080 --> 01:19:34,080
 You answered that one quick.

1399
01:19:34,080 --> 01:19:34,080
 We are adjourned.