WEBVTT 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 00:00:08.700 --> 00:00:12.760 Board for the City of Denton for Monday, July 26th, 2021. 00:00:12.760 --> 00:00:17.280 Lee, can you hear us? 00:00:17.280 --> 00:00:18.280 You're muted, Lee. 00:00:18.280 --> 00:00:19.280 Yes, ma'am. 00:00:19.280 --> 00:00:20.280 Okay. 00:00:20.280 --> 00:00:21.280 Good morning. 00:00:21.280 --> 00:00:22.280 Okay, great. 00:00:22.280 --> 00:00:24.440 The first item is public comment period. 00:00:24.440 --> 00:00:28.120 Does anybody present wish to speak? 00:00:28.120 --> 00:00:30.720 Is there anybody on the line that wishes to speak? 00:00:30.720 --> 00:00:32.320 No, Chair. 00:00:32.320 --> 00:00:34.200 There are no virtual public comments. 00:00:34.200 --> 00:00:35.200 Okay. 00:00:35.200 --> 00:00:36.200 Thank you. 00:00:36.200 --> 00:00:38.060 So then the first item is consent agenda. 00:00:38.060 --> 00:00:43.400 Does a board member wish to pull either item A or B from the agenda? 00:00:43.400 --> 00:00:49.280 Okay, seeing none, do we have a motion to approve consent agenda? 00:00:49.280 --> 00:00:52.360 So moved. 00:00:52.360 --> 00:00:53.360 Barbara moved. 00:00:53.360 --> 00:00:54.360 Okay, and Karen seconded. 00:00:54.360 --> 00:00:55.360 All in favor say aye. 00:00:55.360 --> 00:00:56.360 Aye. 00:00:56.360 --> 00:00:57.360 Aye. 00:00:57.360 --> 00:00:59.600 Okay, that carries. 00:00:59.600 --> 00:01:05.280 Next item is consider approval of the July 12th, 2021 minutes. 00:01:05.280 --> 00:01:07.320 Were there any changes or corrections? 00:01:07.320 --> 00:01:12.280 Okay, do we have a motion? 00:01:12.280 --> 00:01:13.840 Move approval. 00:01:13.840 --> 00:01:15.320 Billy's moving approval. 00:01:15.320 --> 00:01:16.320 Second? 00:01:16.320 --> 00:01:17.320 Second. 00:01:17.320 --> 00:01:18.320 That in seconds. 00:01:18.320 --> 00:01:19.320 All in favor say aye. 00:01:19.320 --> 00:01:20.320 Aye. 00:01:20.320 --> 00:01:21.320 Aye. 00:01:21.320 --> 00:01:22.320 Aye. 00:01:22.320 --> 00:01:23.320 Abstain. 00:01:23.320 --> 00:01:24.320 I was absent. 00:01:24.320 --> 00:01:25.320 Okay. 00:01:25.320 --> 00:01:26.320 Thank you, Karen. 00:01:26.320 --> 00:01:32.500 I'm recommending the approval of the water fiscal year 2021-2022 operating in capital 00:01:32.500 --> 00:01:37.320 budget. 00:01:37.320 --> 00:01:40.560 Good morning, Chair, PB members, Nick Vinson, Assistant Director of Finance. 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. 00:01:44.600 --> 00:01:46.640 I do have a presentation if someone has questions. 00:01:46.640 --> 00:01:50.960 Otherwise, we're just looking for approval, Chair. 00:01:50.960 --> 00:01:51.960 Questions? 00:01:51.960 --> 00:01:56.560 All right, do we have a motion to approve? 00:01:56.560 --> 00:01:58.760 Oh, Devin has a question. 00:01:58.760 --> 00:01:59.760 Sorry. 00:01:59.760 --> 00:02:00.760 Thank you. 00:02:00.760 --> 00:02:01.760 Yes, sir. 00:02:01.760 --> 00:02:06.080 So I was noticing that the minimum rates, the minimum revenues are going up by about 00:02:06.080 --> 00:02:10.200 10%, but the volume metric are going up by 6% or 7%. 00:02:10.200 --> 00:02:17.080 Is that, I was trying to understand how, is volume decreasing, like is conservation increasing 00:02:17.080 --> 00:02:19.720 or new users using less water? 00:02:19.720 --> 00:02:22.000 So that's a great question. 00:02:22.000 --> 00:02:25.420 Volume usage is continuing to increase in the city with growth. 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 00:02:29.960 --> 00:02:34.440 is that the average consumption for residential customers actually decreased over the years. 00:02:34.440 --> 00:02:37.680 So it used to be 9,200 gallons, now it's 7,600 gallons. 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 00:02:41.280 --> 00:02:42.280 presentation. 00:02:42.280 --> 00:02:43.280 Okay. 00:02:43.280 --> 00:02:46.880 Thank you. 00:02:46.880 --> 00:02:47.880 Other questions? 00:02:47.880 --> 00:02:50.520 Do we have a motion to approve? 00:02:50.520 --> 00:02:51.520 So moved. 00:02:51.520 --> 00:02:52.520 And a second? 00:02:52.520 --> 00:02:53.520 Second. 00:02:53.520 --> 00:02:54.520 All in favor, say aye. 00:02:54.520 --> 00:02:55.520 Aye. 00:02:55.520 --> 00:02:56.520 Aye. 00:02:56.520 --> 00:02:57.520 Okay. 00:02:57.520 --> 00:03:01.560 That one carries. 00:03:01.560 --> 00:03:06.240 Consider recommending the approval of the wastewater fiscal year 2021-2022 operating 00:03:06.240 --> 00:03:09.880 and capital budget. 00:03:09.880 --> 00:03:10.880 Same deal. 00:03:10.880 --> 00:03:11.880 Are there any questions? 00:03:11.880 --> 00:03:14.600 If you have any questions, I'd be happy to answer them. 00:03:14.600 --> 00:03:15.600 Questions of anyone? 00:03:15.600 --> 00:03:16.600 Okay. 00:03:16.600 --> 00:03:18.720 Do we have a motion to approve? 00:03:18.720 --> 00:03:20.880 Move approval. 00:03:20.880 --> 00:03:21.880 Thank you, Barbara. 00:03:21.880 --> 00:03:22.880 And a second? 00:03:22.880 --> 00:03:23.880 Second. 00:03:23.880 --> 00:03:24.880 Ben seconds. 00:03:24.880 --> 00:03:25.880 All in favor say aye. 00:03:25.880 --> 00:03:26.880 Aye. 00:03:26.880 --> 00:03:27.880 Aye. 00:03:27.880 --> 00:03:28.880 Aye. 00:03:28.880 --> 00:03:29.880 No nays. 00:03:29.880 --> 00:03:30.880 That one carries. 00:03:30.880 --> 00:03:35.600 Consider recommending the approval of the solid waste fiscal year 2021-2022 operating and 00:03:35.600 --> 00:03:37.520 capital budgets. 00:03:37.520 --> 00:03:38.520 Same thing. 00:03:38.520 --> 00:03:40.760 Any questions? 00:03:40.760 --> 00:03:44.120 Do we have a motion to approve? 00:03:44.120 --> 00:03:45.120 So moved. 00:03:45.120 --> 00:03:46.120 So moved. 00:03:46.120 --> 00:03:47.120 That one carries. 00:03:47.120 --> 00:03:48.120 Devin seconds. 00:03:48.120 --> 00:03:49.120 How's that? 00:03:49.120 --> 00:03:50.120 All in favor say aye. 00:03:50.120 --> 00:03:51.120 Aye. 00:03:51.120 --> 00:03:52.120 Aye. 00:03:52.120 --> 00:03:53.120 Motion carries. 00:03:53.120 --> 00:03:58.400 Consider recommending the approval of the electric fund fiscal year 2021-2022 operating 00:03:58.400 --> 00:04:00.160 and capital budgets. 00:04:00.160 --> 00:04:02.200 Any questions? 00:04:02.200 --> 00:04:03.880 All right. 00:04:03.880 --> 00:04:05.760 Seeing none, do we have a motion to approve? 00:04:05.760 --> 00:04:07.320 I'll move approval. 00:04:07.320 --> 00:04:08.320 Thank you, Billy. 00:04:08.320 --> 00:04:09.320 And a second? 00:04:09.320 --> 00:04:10.320 Second. 00:04:10.320 --> 00:04:12.440 Was that you, Ben? 00:04:12.440 --> 00:04:13.440 Lee. 00:04:13.440 --> 00:04:14.440 Okay. 00:04:14.440 --> 00:04:15.440 Thank you, Lee. 00:04:15.440 --> 00:04:16.440 All in favor say aye. 00:04:16.440 --> 00:04:17.440 Aye. 00:04:17.440 --> 00:04:18.440 Aye. 00:04:18.440 --> 00:04:19.440 Aye. 00:04:19.440 --> 00:04:20.760 That one carries. 00:04:20.760 --> 00:04:27.800 Consider recommending the approval of the customer service fiscal year 2021-2022 operating budget. 00:04:27.800 --> 00:04:29.280 Any questions? 00:04:29.280 --> 00:04:31.000 I had a quick question. 00:04:31.000 --> 00:04:36.520 I was noticing -- let me see what page it is. 00:04:36.520 --> 00:04:41.080 There was revenue going from zero to like 200,000 in subsequent years. 00:04:41.080 --> 00:04:42.080 It was called Other. 00:04:42.080 --> 00:04:44.360 I was wondering what the Other covered. 00:04:44.360 --> 00:04:47.480 Let me pull the presentation up really quick and we can see. 00:04:47.480 --> 00:04:53.320 It's the first page of the presentation, bottom line. 00:04:53.320 --> 00:04:56.280 I'm sure you've already told us, but I've slept since then. 00:04:56.280 --> 00:04:57.280 That's okay. 00:04:57.280 --> 00:05:02.280 Let me look here and see. 00:05:02.280 --> 00:05:04.420 Should be sharing. 00:05:04.420 --> 00:05:11.040 Just on the highlights page. 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 00:05:15.360 --> 00:05:18.120 service, but I can get you an answer to that. 00:05:18.120 --> 00:05:19.120 I don't have that answer right now. 00:05:19.120 --> 00:05:21.480 I don't know exactly what exactly that revenue is. 00:05:21.480 --> 00:05:22.480 Okay. 00:05:22.480 --> 00:05:24.680 And it goes up every year, so there's something. 00:05:24.680 --> 00:05:25.680 We definitely can get you an answer to that. 00:05:25.680 --> 00:05:26.680 Something going on on that. 00:05:26.680 --> 00:05:27.680 Thanks, Nick. 00:05:27.680 --> 00:05:29.640 And I know Mr. Ryback had a question, too. 00:05:29.640 --> 00:05:31.640 Go ahead, Lee. 00:05:31.640 --> 00:05:35.040 Yes, thank you. 00:05:35.040 --> 00:05:42.200 I do not recall, unfortunately, covering the customer service department budget previously, 00:05:42.200 --> 00:05:46.160 and I'll take responsibility for that. 00:05:46.160 --> 00:05:51.160 So the customer service budget is drawn from the budgets of the Other departments. 00:05:51.160 --> 00:05:55.600 Is that a correct assumption? 00:05:55.600 --> 00:05:59.720 Mr. Ryback, if I heard your question correctly, how is the customer service budget funded? 00:05:59.720 --> 00:06:00.720 Was that your question? 00:06:00.720 --> 00:06:01.720 Okay. 00:06:01.720 --> 00:06:02.720 I will. 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 00:06:08.560 --> 00:06:09.560 or not. 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. 00:06:13.560 --> 00:06:17.960 Two or three years ago, we actually got direction to separate this fund for transparency. 00:06:17.960 --> 00:06:21.560 Since then, we've continued to bring the customer service fund back to the public utilities 00:06:21.560 --> 00:06:23.380 board separately. 00:06:23.380 --> 00:06:27.600 So you do see that presentation in addition to the utilities, and another reason is mainly 00:06:27.600 --> 00:06:29.720 is because the utilities fund that department. 00:06:29.720 --> 00:06:33.160 You know, 90% of the budget of customer service is made up from the utilities. 00:06:33.160 --> 00:06:38.160 Does that answer your question, Mr. Ryback? 00:06:38.160 --> 00:06:41.320 And this one was presented at the last board meeting. 00:06:41.320 --> 00:06:43.320 It does in a way, yes. 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 00:06:49.920 --> 00:06:50.920 didn't forget it. 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 00:07:04.040 --> 00:07:07.320 the various departments and their budgets. 00:07:07.320 --> 00:07:13.200 So the customer service entails the cost of handling billings that is entailed the cost 00:07:13.200 --> 00:07:14.200 of answering the phone. 00:07:14.200 --> 00:07:18.480 Could you give me a quick thumbnail sketch of that? 00:07:18.480 --> 00:07:19.800 Yeah, absolutely. 00:07:19.800 --> 00:07:21.500 So customer service, you're exactly correct. 00:07:21.500 --> 00:07:25.800 So customer service receives the calls for the city. 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 00:07:30.600 --> 00:07:32.320 and a tremendous job. 00:07:32.320 --> 00:07:34.920 Krista Foster, the customer service manager is on the phone. 00:07:34.920 --> 00:07:39.320 Krista, are you on the phone to answer Mr. Ryback's question? 00:07:39.320 --> 00:07:40.320 I am. 00:07:40.320 --> 00:07:44.320 And so let me make sure that I'm understanding what we're wanting. 00:07:44.320 --> 00:07:50.100 We're wanting to understand what customer service does in relation to the utilities. 00:07:50.100 --> 00:07:53.680 Okay. 00:07:53.680 --> 00:07:58.660 So the customer service department is made up of three key areas. 00:07:58.660 --> 00:08:02.920 One of them is the utility customer service, which is the call center, the front lobby 00:08:02.920 --> 00:08:08.880 and our cash operations window where we deal with some of the receipt of payments. 00:08:08.880 --> 00:08:16.040 We also have our collections division that deals with ensuring revenue balances are accurate 00:08:16.040 --> 00:08:20.620 that deals with making sure that we're bringing revenues back in a timely manner. 00:08:20.620 --> 00:08:24.900 And then we also have our billing department, which produces the monthly bills for each 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 00:08:29.220 --> 00:08:31.780 other parts of the city. 00:08:31.780 --> 00:08:37.200 So we help with everything from bill production to bill collection to assisting people in 00:08:37.200 --> 00:08:42.440 understanding what is on their bill, assisting people with understanding how to maybe potentially 00:08:42.440 --> 00:08:48.000 identify leaks and things like that, setting up pay arrangements, taking payments and doing 00:08:48.000 --> 00:08:50.560 service starts and stops. 00:08:50.560 --> 00:08:57.040 And then we also take all of the mainline phone calls for city hall. 00:08:57.040 --> 00:09:00.700 So if someone just has a general question, those come into us as well. 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 00:09:05.760 --> 00:09:08.240 start bringing in other divisions. 00:09:08.240 --> 00:09:12.700 Does that answer the question that you have? 00:09:12.700 --> 00:09:13.700 Yes, ma'am. 00:09:13.700 --> 00:09:18.640 It's answering the phone and it's also collections and billing. 00:09:18.640 --> 00:09:23.400 So that would fall under the gathering the revenue for the departments. 00:09:23.400 --> 00:09:24.400 Correct. 00:09:24.400 --> 00:09:28.040 That is all part of customer service. 00:09:28.040 --> 00:09:33.360 You're so very welcome. 00:09:33.360 --> 00:09:34.360 Other questions? 00:09:34.360 --> 00:09:35.360 That's all I have, Madam Chairman. 00:09:35.360 --> 00:09:36.360 Thank you, ma'am. 00:09:36.360 --> 00:09:37.360 Thank you. 00:09:37.360 --> 00:09:38.360 Okay. 00:09:38.360 --> 00:09:39.360 Do we have a motion to approve? 00:09:39.360 --> 00:09:40.360 So moved. 00:09:40.360 --> 00:09:41.360 Second. 00:09:41.360 --> 00:09:45.080 Thank you, Lise. 00:09:45.080 --> 00:09:46.080 And Barbara seconded. 00:09:46.080 --> 00:09:47.500 All in favor say aye. 00:09:47.500 --> 00:09:48.500 Aye. 00:09:48.500 --> 00:09:49.500 Aye. 00:09:49.500 --> 00:09:50.500 Opposed? 00:09:50.500 --> 00:09:52.100 That one carries. 00:09:52.100 --> 00:09:53.640 Management reports. 00:09:53.640 --> 00:10:02.280 Madam Chair, members of the PUB, so just our standard future agenda items that we have 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 00:10:07.400 --> 00:10:11.560 information on the budget, certainly the rates you'll be discussing today. 00:10:11.560 --> 00:10:14.840 The only item that you don't have for rates is on the electric rates. 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. 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 00:10:26.360 --> 00:10:29.000 solid waste management strategy. 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 00:10:34.080 --> 00:10:37.920 is ready to bring that back to you. 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 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 00:10:47.760 --> 00:10:51.560 forgotten and I'll let Mr. Ettsonoff know that I've not forgotten about him. 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 00:10:55.200 --> 00:10:56.200 that data. 00:10:56.200 --> 00:11:00.440 Obviously, this legislative update is still kind of on hold. 00:11:00.440 --> 00:11:04.400 We are working on potentially an informal staff report that we're going to send to 00:11:04.400 --> 00:11:05.400 the council. 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 00:11:09.400 --> 00:11:12.400 that the governor called is kind of on hold right now. 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 00:11:18.000 --> 00:11:20.720 to you as quickly as we can. 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 00:11:26.180 --> 00:11:27.180 may have. 00:11:27.180 --> 00:11:28.180 Any questions? 00:11:28.180 --> 00:11:29.320 Or new items? 00:11:29.320 --> 00:11:30.320 No? 00:11:30.320 --> 00:11:34.840 All right, then we go into concluding items. 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 00:11:39.320 --> 00:11:41.280 for any other announcements. 00:11:41.280 --> 00:11:43.160 Any concluding items? 00:11:43.160 --> 00:11:48.160 All right, then we'll go into the work session. 00:11:48.160 --> 00:11:52.280 Receive a report and hold a discussion and give staff direct direction on the proposed 00:11:52.280 --> 00:11:57.880 water, wastewater, and solid waste rates for fiscal year 2021 and 2022. 00:11:57.880 --> 00:12:01.040 Good morning again, Nick Benson, Assistant Director of Finance. 00:12:01.040 --> 00:12:03.320 Let me get the presentation pulled up really quick. 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. 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 00:12:18.960 --> 00:12:20.600 rates today and solid waste. 00:12:20.600 --> 00:12:23.080 We'll actually talk a little bit about wastewater. 00:12:23.080 --> 00:12:25.800 We have one slide to cover the wastewater rate changes. 00:12:25.800 --> 00:12:29.160 As Tony had mentioned, electric will not be discussed today. 00:12:29.160 --> 00:12:32.840 Those rate conversations will come back forward to you later this year once we get through 00:12:32.840 --> 00:12:36.800 the summer months and really understand how we're going to perform this summer and what 00:12:36.800 --> 00:12:40.520 those rate changes Winter Storm URI did to the utility. 00:12:40.520 --> 00:12:45.160 So talk a little bit about that more this year. 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 00:12:48.080 --> 00:12:51.040 structure that you'll see throughout the presentation. 00:12:51.040 --> 00:12:54.920 The first one being a facility charge, and this is a fixed charge charged to customers 00:12:54.920 --> 00:12:56.260 every single month. 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 00:13:00.140 --> 00:13:01.140 inch meter. 00:13:01.140 --> 00:13:04.920 We'll talk a little bit more about that here in a coming couple slides. 00:13:04.920 --> 00:13:08.260 The volume charge is a monthly rate charge to customers based on the volume that they 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 00:13:12.600 --> 00:13:16.740 water rate structure and what guidance you want to give us moving forward with that rate 00:13:16.740 --> 00:13:18.400 structure itself. 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, 00:13:24.160 --> 00:13:29.380 which is the wholesale raw water pass through rate. 00:13:29.380 --> 00:13:32.360 So cost of service history, I think some of the PV members are here. 00:13:32.360 --> 00:13:33.680 We went through the cost of service results. 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. 00:13:38.600 --> 00:13:39.600 I'll say recent. 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 00:13:44.040 --> 00:13:45.040 that study. 00:13:45.040 --> 00:13:48.220 There's a lot of tool internally in the finance department and the water utility. 00:13:48.220 --> 00:13:52.680 So the last study was completed in 2014 prior to the one we just updated. 00:13:52.680 --> 00:13:56.440 The one we just updated we contracted with Raftelis in 2019. 00:13:56.440 --> 00:13:58.960 That study was officially finalized last fall. 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 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. 00:14:08.560 --> 00:14:11.600 So that will be coming for the near future. 00:14:11.600 --> 00:14:14.720 These studies are updated approximately over five years, so looking to update that study 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 00:14:21.800 --> 00:14:25.520 cost of service based rates, understand what those are, and to communicate them to the 00:14:25.520 --> 00:14:31.160 governing bodies, ensure revenue stability, and then establish fair and equitable rates. 00:14:31.160 --> 00:14:33.920 And of course, this little diagram on your right here talks about how it breaks down 00:14:33.920 --> 00:14:38.960 water and sewer, looking at the cost of service model. 00:14:38.960 --> 00:14:41.980 So this is a really high-level summary of that report I mentioned earlier. 00:14:41.980 --> 00:14:48.120 This is what each service category is classified into within the water utility, so we break 00:14:48.120 --> 00:14:53.160 it out by residential, commercial, irrigation, fire hydrant, and then you can see total retail, 00:14:53.160 --> 00:14:55.300 and then of course wholesale at the bottom. 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 00:14:57.960 --> 00:15:03.560 recovery about 6 percent, commercial is over recovering about 26.2 percent, irrigation 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, 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 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 00:15:18.880 --> 00:15:23.920 uncommon across the industry, so I just want to point that out. 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 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 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 00:15:36.540 --> 00:15:40.760 and not dollars, I want people to think of, you know, flushing your toilet, for example, 00:15:40.760 --> 00:15:46.000 cost 65 cents, it's .65 cents, so just wanted to point that out. 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 00:15:49.840 --> 00:15:56.680 cents, so just kind of put that into perspective. 00:15:56.680 --> 00:16:01.120 So before we get into the rate conversation, and Mr. Taylor, you had asked this question 00:16:01.120 --> 00:16:05.200 earlier, we'll get to this bullet point in just a second about the average usage. 00:16:05.200 --> 00:16:09.280 So the residential bill is made up of two charges each month, the facility charge, which 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. 00:16:14.800 --> 00:16:18.840 Currently, there are seasonal rates, meaning that there's a winter block structure and 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, 00:16:24.980 --> 00:16:28.080 and some options to maybe do away with that to keep those bills from changing throughout 00:16:28.080 --> 00:16:29.440 the year. 00:16:29.440 --> 00:16:35.040 The average residential consumption decreased from 9,200 gallons to 7,600, so that is great 00:16:35.040 --> 00:16:36.040 news. 00:16:36.040 --> 00:16:37.040 That did not happen, of course, overnight. 00:16:37.040 --> 00:16:43.680 That was a period of time, but we do continue to communicate conservation within the community. 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 00:16:47.880 --> 00:16:52.800 to further that along in those conservation efforts. 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, 00:16:57.560 --> 00:16:58.960 which is a fairly large tier. 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, 00:17:03.520 --> 00:17:07.280 are changed twice a year, so customer service goes in there and adjusts this volumetric 00:17:07.280 --> 00:17:13.560 rate for customers twice a year, so it's not really consistent what customers could expect 00:17:13.560 --> 00:17:19.200 to pay in the winter and summer, so we'll talk a little bit about that. 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 00:17:23.200 --> 00:17:25.240 share this with the group. 00:17:25.240 --> 00:17:26.240 A couple of different things on here. 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 00:17:30.440 --> 00:17:32.720 table that says current. 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 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. 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 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, 00:17:54.600 --> 00:17:58.360 so about 11% of the bill distribution. 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 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 00:18:08.840 --> 00:18:09.840 here in just a second. 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. 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 00:18:18.520 --> 00:18:19.520 in the next slide. 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. 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 00:18:31.000 --> 00:18:35.760 just kind of narrowing down that first tier where it's not so wide. 00:18:35.760 --> 00:18:39.280 Then this is the meter breakdown, as I mentioned earlier, the most common meter for residential 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 00:18:45.040 --> 00:18:47.640 customers fit into the 3/4-inch meter. 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 00:18:52.040 --> 00:18:56.520 per-thousand-gallon usage basis per month, so you can see the majority of those customers 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 00:19:02.040 --> 00:19:07.040 being anywhere from 0 to 7, that's 7,600 average usage I mentioned earlier. 00:19:07.040 --> 00:19:08.040 Nick? 00:19:08.040 --> 00:19:09.320 Yes, ma'am. 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? 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 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 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 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 00:19:35.720 --> 00:19:39.320 meter to accommodate that usage, but that's something we'd definitely have to follow 00:19:39.320 --> 00:19:42.160 up with you on, Mr. Russell, yeah, absolutely. 00:19:42.160 --> 00:19:47.720 I'll write that question down really quick. 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 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 00:20:03.560 --> 00:20:08.960 proposed change, so could you address those? 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? 00:20:20.360 --> 00:20:25.160 That's your question, Mr. Rybak, I think it would be conservation communication, the city 00:20:25.160 --> 00:20:30.760 communicating to customers to conserve water during those hot and dry periods, also energy 00:20:30.760 --> 00:20:35.280 efficient appliances in your household, you know, toilets, for example, have the gallons 00:20:35.280 --> 00:20:39.800 that they take to flush has actually decreased over the years, was that your question, Mr. 00:20:39.800 --> 00:20:40.800 Rybak? 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 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 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 00:20:59.320 --> 00:21:08.080 rate structure at 5,000, you also considered 7,500 gallons as a cutoff. 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 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 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 00:21:26.200 --> 00:21:32.520 choices that you're making or presenting on the rate spectrum, is that better? 00:21:32.520 --> 00:21:34.920 That's absolutely, it's clear, thank you very much. 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 00:21:38.240 --> 00:21:39.240 options. 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 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 00:21:47.600 --> 00:21:48.800 first tier. 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 00:21:54.320 --> 00:21:55.420 irrigation. 00:21:55.420 --> 00:21:59.840 So it removes irrigation, it looks at more human consumption than it does irrigating 00:21:59.840 --> 00:22:00.840 those lawns. 00:22:00.840 --> 00:22:03.160 So that's where those two tier cutoffs came from. 00:22:03.160 --> 00:22:07.920 One is from the average usage, and one is from the winter usage excluding irrigation. 00:22:07.920 --> 00:22:11.320 Mr. Ibex, did I answer your question? 00:22:11.320 --> 00:22:13.960 Yes, sir, thank you. 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. 00:22:18.200 --> 00:22:22.400 I want everybody to be sure to understand exactly what we're proposing and what feedback 00:22:22.400 --> 00:22:27.880 you want to give us. 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, 00:22:34.760 --> 00:22:36.600 we can come back to it, of course. 00:22:36.600 --> 00:22:40.440 So there's three different options, we're looking for feedback from you today. 00:22:40.440 --> 00:22:44.160 We do have a recommendation of what staff recommends, but definitely if your feedback 00:22:44.160 --> 00:22:47.860 is different, we will take that forward and present that to council tomorrow when this 00:22:47.860 --> 00:22:49.560 presentation goes forward. 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 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 00:22:58.320 --> 00:23:00.240 block and a summer block. 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 00:23:04.040 --> 00:23:06.060 change for the volumetric rate. 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 00:23:11.000 --> 00:23:16.180 the average consumption of 7,600, is where that 7,500 comes from. 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, 00:23:20.520 --> 00:23:25.960 is to combine the winter and summer rates, to create a combined volumetric rate. 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 00:23:29.880 --> 00:23:33.720 our consultant during the cost of service study, so definitely want to get your feedback 00:23:33.720 --> 00:23:35.020 on it today. 00:23:35.020 --> 00:23:40.440 If you did this option, customers would see a $3.15 decrease per month. 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, 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, 00:23:49.880 --> 00:23:53.040 we're not going to see a rate revenue decrease for the water utility. 00:23:53.040 --> 00:23:57.400 What will happen is that revenue loss from those lower tiers, so the lower tier customers 00:23:57.400 --> 00:24:00.480 actually see a decrease of $3.15. 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 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. 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 00:24:14.600 --> 00:24:17.080 slide, but I want to be sure to point that out. 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 00:24:21.760 --> 00:24:25.540 average, excluding irrigation in the summer months. 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 00:24:29.320 --> 00:24:33.700 or one combined rate, it wouldn't be seasonal anymore. 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 00:24:39.720 --> 00:24:43.960 per month, so a little bit different structure. 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 00:24:47.240 --> 00:24:52.600 recommending option two, create a first tier from zero to 7,500 gallons. 00:24:52.600 --> 00:24:55.720 So I have a few questions. 00:24:55.720 --> 00:24:56.720 Go ahead. 00:24:56.720 --> 00:24:57.720 I do too. 00:24:57.720 --> 00:24:58.720 Go ahead. 00:24:58.720 --> 00:25:00.880 See if you take mine. 00:25:00.880 --> 00:25:05.760 So you're talking in averages and average bills, which means average customer has 12 00:25:05.760 --> 00:25:12.040 bills a year, and average usage is 7,600 gallons. 00:25:12.040 --> 00:25:18.520 What's like the median usage, that I think it might be more, median households might 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 00:25:22.440 --> 00:25:24.840 there at the end above 50,000. 00:25:24.840 --> 00:25:26.480 I think that's a great question. 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, 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. 00:25:34.360 --> 00:25:39.840 And then what are summer months and what are winter months? 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, 00:25:48.920 --> 00:25:55.920 second April, May, it's November, December, January, February, because we extended with 00:25:55.920 --> 00:25:56.920 URI. 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 00:26:01.800 --> 00:26:02.800 what months are. 00:26:02.800 --> 00:26:03.800 I can get that for you. 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 00:26:07.440 --> 00:26:09.520 May if I'm not mistaken each year. 00:26:09.520 --> 00:26:11.720 Is it six months summer, six months winter? 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 00:26:15.920 --> 00:26:19.920 time frame, take you through May, and then in May the block structure for summer come 00:26:19.920 --> 00:26:20.920 into effect. 00:26:20.920 --> 00:26:21.920 Yeah. 00:26:21.920 --> 00:26:22.920 Thank you. 00:26:22.920 --> 00:26:23.920 Okay. 00:26:23.920 --> 00:26:30.960 And my questions are back then to the why option two versus option three. 00:26:30.960 --> 00:26:34.240 I think about conserving water in the summertime. 00:26:34.240 --> 00:26:38.800 I use water as awesome so that I'm not over irrigating my lawn. 00:26:38.800 --> 00:26:43.180 So it tells me how much to irrigate and I adjust for that. 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 00:26:48.360 --> 00:26:50.520 over irrigating their lawns? 00:26:50.520 --> 00:26:54.240 I walked through my neighborhood, it would have just rained two inches and everybody's 00:26:54.240 --> 00:26:55.600 sprinklers are going off. 00:26:55.600 --> 00:26:59.200 It's like, really, you can go in the garage and shut those off. 00:26:59.200 --> 00:27:01.160 So that's just a thought. 00:27:01.160 --> 00:27:02.160 Okay. 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. 00:27:06.600 --> 00:27:07.600 Yes. 00:27:07.600 --> 00:27:09.640 That would then be household use. 00:27:09.640 --> 00:27:10.640 Yeah, absolutely. 00:27:10.640 --> 00:27:12.960 So it's just one opinion. 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 00:27:15.800 --> 00:27:18.600 take that forward to council tomorrow, absolutely. 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 00:27:23.800 --> 00:27:24.800 is 4,500. 00:27:24.800 --> 00:27:25.800 It's much higher. 00:27:25.800 --> 00:27:26.800 Yeah. 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 00:27:35.440 --> 00:27:43.840 maybe at 5,000, maybe 45 or 50% of households would have no incentive. 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 00:27:51.340 --> 00:27:58.440 in that tail, they'd be very significantly affected by a much larger increase. 00:27:58.440 --> 00:27:59.440 It would be. 00:27:59.440 --> 00:28:05.200 So I think that's just something to consider as well. 00:28:05.200 --> 00:28:06.200 Great feedback. 00:28:06.200 --> 00:28:07.200 Anybody else have any questions? 00:28:07.200 --> 00:28:08.200 Oh, wait. 00:28:08.200 --> 00:28:09.200 There we go. 00:28:09.200 --> 00:28:13.200 I just had a quick question just to get my brain around this. 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 00:28:20.720 --> 00:28:25.420 over 7,500 in the summer because they're irrigating. 00:28:25.420 --> 00:28:30.320 So they would be paying at a higher rate in the summer. 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 00:28:33.920 --> 00:28:34.920 rate. 00:28:34.920 --> 00:28:37.800 Do you see what I mean? 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 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 00:28:49.360 --> 00:28:52.760 the next tier anyway. 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 00:28:59.280 --> 00:29:02.080 or 2.10 a month? 00:29:02.080 --> 00:29:03.080 Yes. 00:29:03.080 --> 00:29:04.560 So a couple of things. 00:29:04.560 --> 00:29:10.200 So currently, the decrease you see per month is based on 7,600 gallons. 00:29:10.200 --> 00:29:15.700 Realistically, a customer could use up to 15,000 gallons a month without seeing an increase. 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 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. 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 00:29:29.440 --> 00:29:31.780 experiencing right now. 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 00:29:37.000 --> 00:29:40.320 then they'd be bumped up. 00:29:40.320 --> 00:29:46.040 Well, yeah, actually in option two and option three, the only two differences between those 00:29:46.040 --> 00:29:48.080 tables is the first tier. 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. 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 00:29:58.120 --> 00:30:00.160 the rates in the higher tiers have increased. 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, 00:30:06.480 --> 00:30:08.520 the 12,04 is higher than 11,79. 00:30:08.520 --> 00:30:13.080 So those increases, those customers above 15,000 gallons would be more in option two 00:30:13.080 --> 00:30:15.080 than they would option three. 00:30:15.080 --> 00:30:16.080 Okay. 00:30:16.080 --> 00:30:17.080 Right. 00:30:17.080 --> 00:30:18.080 Hopefully the answer helps. 00:30:18.080 --> 00:30:19.080 Yeah. 00:30:19.080 --> 00:30:21.120 I guess that makes sense. 00:30:21.120 --> 00:30:29.120 I'm just thinking there aren't very many people who use less than 5,000. 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. 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 00:30:44.520 --> 00:30:45.520 distribution. 00:30:45.520 --> 00:30:46.520 Right. 00:30:46.520 --> 00:30:49.680 And then 34% would be in five to 15. 00:30:49.680 --> 00:30:51.760 So it would be 89%. 00:30:51.760 --> 00:30:53.840 These are averages? 00:30:53.840 --> 00:30:54.840 The percentages? 00:30:54.840 --> 00:30:55.840 No, the volume. 00:30:55.840 --> 00:30:56.840 The volume. 00:30:56.840 --> 00:30:57.840 Oh, the volumes. 00:30:57.840 --> 00:30:58.840 Yeah. 00:30:58.840 --> 00:30:59.840 The volume's averages. 00:30:59.840 --> 00:31:00.840 Yeah, absolutely. 00:31:00.840 --> 00:31:01.840 But it's average across the year. 00:31:01.840 --> 00:31:02.840 Correct. 00:31:02.840 --> 00:31:03.840 Yeah, and it'd be higher in the summer months. 00:31:03.840 --> 00:31:04.840 As opposed to per season. 00:31:04.840 --> 00:31:05.840 Absolutely, yeah. 00:31:05.840 --> 00:31:06.840 And that's where that 5,000 came in. 00:31:06.840 --> 00:31:11.760 For example, you know, the average is 7,600 right for the entire year. 00:31:11.760 --> 00:31:15.420 The average for the winter months, excluding the summer usage, is 5,000. 00:31:15.420 --> 00:31:16.880 That's where that 5,000 came from. 00:31:16.880 --> 00:31:17.880 So yeah. 00:31:17.880 --> 00:31:18.880 Okay. 00:31:18.880 --> 00:31:20.540 Hopefully that helps you answer that question. 00:31:20.540 --> 00:31:21.540 I guess it's a rational basis. 00:31:21.540 --> 00:31:22.540 I can take this. 00:31:22.540 --> 00:31:26.600 I'm supposed to take this presentation down too, I think, when there's questions. 00:31:26.600 --> 00:31:27.600 Just to follow up too. 00:31:27.600 --> 00:31:32.800 So the winter months are November through April, and then obviously summer is May through 00:31:32.800 --> 00:31:33.800 October. 00:31:33.800 --> 00:31:34.800 Okay. 00:31:34.800 --> 00:31:35.800 Yeah. 00:31:35.800 --> 00:31:36.800 Thank you, Tony. 00:31:36.800 --> 00:31:44.760 Madam Chair, I have a comment, a question for the speaker. 00:31:44.760 --> 00:31:45.760 I didn't hear that. 00:31:45.760 --> 00:31:46.760 Did you hear? 00:31:46.760 --> 00:31:47.760 I think he has a question. 00:31:47.760 --> 00:31:48.760 I don't know what the question. 00:31:48.760 --> 00:31:49.760 I'm sorry, Lee. 00:31:49.760 --> 00:31:50.760 Can you go ahead? 00:31:50.760 --> 00:31:51.760 We can't. 00:31:51.760 --> 00:31:52.760 We didn't hear that. 00:31:52.760 --> 00:31:53.760 Okay. 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. 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 00:32:05.920 --> 00:32:14.280 the simplification of having just a standard bill, if you will, and not a seasonal adjustment. 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 00:32:20.240 --> 00:32:25.040 during the summer, it would seem like the current rate structure would certainly let 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 00:32:32.480 --> 00:32:35.960 would with this rate structure, which is averaged out over the whole year. 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, 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 00:32:46.920 --> 00:32:51.400 to encourage people to do less irrigation in the summertime, which seems to be the big 00:32:51.400 --> 00:32:59.160 question here, that having the rate structure have, which encourages, I think, by the alternation 00:32:59.160 --> 00:33:06.400 of rates in summer, but a more careful and judicious use of irrigation on the home. 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 00:33:13.360 --> 00:33:16.960 and how it will work, because we're projecting since we don't know. 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 00:33:21.880 --> 00:33:24.360 we're currently doing? 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 00:33:27.920 --> 00:33:29.520 the first time, and I think you recall this. 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. 00:33:34.560 --> 00:33:37.560 In that audit, really what she encouraged staff to do and one of the recommendations 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 00:33:42.000 --> 00:33:45.800 some alternatives for council and PUB to consider, because really, that first tier is fairly 00:33:45.800 --> 00:33:46.800 large. 00:33:46.800 --> 00:33:51.640 Given your point with winter and summer blocks rate structuring, that is definitely an advantage 00:33:51.640 --> 00:33:52.640 of it. 00:33:52.640 --> 00:33:56.240 It does discourage people from irrigating in the summer months because that rate goes 00:33:56.240 --> 00:34:01.640 up accordingly, and if that's the direction the PUB gives us today, we definitely could 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 00:34:05.200 --> 00:34:07.840 winter rates, if that's the direction the PUB gives us. 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 00:34:11.080 --> 00:34:16.920 take that forward to city council and come back with future discussions throughout August. 00:34:16.920 --> 00:34:18.920 Thank you. 00:34:18.920 --> 00:34:20.920 You're welcome. 00:34:20.920 --> 00:34:24.920 Devon, do you have another-- Yes, go ahead. 00:34:24.920 --> 00:34:27.760 Yeah, I do have-- trying to think of how to word that. 00:34:27.760 --> 00:34:28.760 Yeah, absolutely. 00:34:28.760 --> 00:34:29.880 Kind of a question and a statement. 00:34:29.880 --> 00:34:40.040 So I'm just trying to-- like this long tail. 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 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 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 00:34:57.680 --> 00:34:58.680 earlier. 00:34:58.680 --> 00:35:00.840 Yeah, I can pull it up, yeah. 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-- 00:35:07.080 --> 00:35:13.760 like they're 10 households' worth of water consumption. 00:35:13.760 --> 00:35:17.480 And you use it, you pay for it, that's appropriate. 00:35:17.480 --> 00:35:21.160 We have, I think, ample resources right now. 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. 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 00:35:33.080 --> 00:35:35.960 users in our future growth, too. 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 00:35:40.200 --> 00:35:46.080 capacity, you know, delivering water, running a pump uses a little electricity, you pay 00:35:46.080 --> 00:35:50.240 your $8 of 1,000 gallons, whatever. 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 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. 00:36:02.840 --> 00:36:08.960 So I think that's-- there's-- I used the word "incentivize" earlier about incentivizing 00:36:08.960 --> 00:36:09.960 water use. 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. 00:36:16.800 --> 00:36:20.120 But there is also an aspect of paying your fair share. 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 00:36:26.560 --> 00:36:32.160 treatment plant, or make us make a $100 million or $200 million capital investment five or 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 00:36:41.520 --> 00:36:42.520 that. 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 00:36:50.840 --> 00:36:54.640 or so of the population has some incentive. 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 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, 00:37:08.000 --> 00:37:14.060 I do see a gain in savings, a greater gain in savings. 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 00:37:20.020 --> 00:37:21.960 greatest number of people. 00:37:21.960 --> 00:37:28.640 And I wish-- and I know this is-- would be a large and complicated problem. 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. 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, 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? 00:37:53.280 --> 00:38:02.120 But I think that might be too big of a problem to answer quickly or easily. 00:38:02.120 --> 00:38:03.120 So I don't know. 00:38:03.120 --> 00:38:04.480 That might be its own project. 00:38:04.480 --> 00:38:07.520 Well, I think that's great-- all great points, right? 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 00:38:10.840 --> 00:38:15.720 what policies we put in place helping conserve that water does play an impact when those 00:38:15.720 --> 00:38:17.520 plant expansions are needed. 00:38:17.520 --> 00:38:21.760 For example, that $100 million plant that you had mentioned, that if people continue 00:38:21.760 --> 00:38:24.800 to conserve water, there's a possibility maybe it could move out, maybe not. 00:38:24.800 --> 00:38:26.680 Stephen can answer those questions great. 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 00:38:30.560 --> 00:38:31.560 and we can follow up with you. 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 00:38:35.760 --> 00:38:39.120 or 5,000 gallons, what would that make that plant expansion do? 00:38:39.120 --> 00:38:40.560 Would it push it out or not? 00:38:40.560 --> 00:38:41.560 And we could look at that. 00:38:41.560 --> 00:38:44.160 We have forecast models internally that look at that. 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 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 00:38:52.960 --> 00:38:55.560 call a GPCD in the water utility. 00:38:55.560 --> 00:38:58.320 And we're right around 140 gallons a day. 00:38:58.320 --> 00:39:04.240 So GPCD is the gallons consumed per day per person, is about 140 gallons. 00:39:04.240 --> 00:39:05.240 So I think that's important. 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 00:39:09.480 --> 00:39:10.480 points that you brought up. 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 00:39:12.840 --> 00:39:13.840 like that. 00:39:13.840 --> 00:39:14.840 Absolutely. 00:39:14.840 --> 00:39:15.840 Yeah, I would love to see the forecast data. 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 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, 00:39:26.120 --> 00:39:28.960 that modeling human behavior is very hard. 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 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 00:39:38.320 --> 00:39:39.320 the tiers. 00:39:39.320 --> 00:39:41.600 We take that data and put it into the financial model. 00:39:41.600 --> 00:39:44.560 That financial model gives us our revenues and we bring forward 2%. 00:39:44.560 --> 00:39:46.440 So it's almost a team effort. 00:39:46.440 --> 00:39:47.440 It's two-part. 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. 00:39:51.240 --> 00:39:53.520 We build it into the financial model accordingly. 00:39:53.520 --> 00:39:54.520 Yeah. 00:39:54.520 --> 00:39:55.520 Yeah. 00:39:55.520 --> 00:39:57.000 Thank you. 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. 00:40:08.600 --> 00:40:10.320 9,200, yes, sir. 00:40:10.320 --> 00:40:13.520 So how many years of average is that? 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. 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 00:40:24.880 --> 00:40:26.200 we can follow up on, too. 00:40:26.200 --> 00:40:27.760 It didn't happen over a year, of course. 00:40:27.760 --> 00:40:30.360 It's probably back to 2014, 2013 time frame. 00:40:30.360 --> 00:40:31.360 Right. 00:40:31.360 --> 00:40:32.360 It's just rained a lot. 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 00:40:37.240 --> 00:40:38.240 came from. 00:40:38.240 --> 00:40:39.240 Yeah. 00:40:39.240 --> 00:40:40.240 And that's a great point. 00:40:40.240 --> 00:40:42.760 Our study was done in 2019, so this year's been really wet. 00:40:42.760 --> 00:40:45.160 I don't think it's quite as wet last year, if I remember correctly. 00:40:45.160 --> 00:40:48.160 Yeah, it was pretty wet last year, but this year is pretty wet, obviously. 00:40:48.160 --> 00:40:49.160 We know. 00:40:49.160 --> 00:40:50.160 Yeah. 00:40:50.160 --> 00:40:51.160 Okay. 00:40:51.160 --> 00:40:55.960 Then anybody, if you have any more questions, I'll move through the presentation, we can 00:40:55.960 --> 00:41:02.840 continue this conversation, and give us your direction at the end, it would be great. 00:41:02.840 --> 00:41:05.880 So the residential irrigation, I know we've already talked about irrigation a bunch, but 00:41:05.880 --> 00:41:08.480 we wanted to bring this up to the -- 00:41:08.480 --> 00:41:09.480 The presentation is another -- 00:41:09.480 --> 00:41:10.480 Oh, sorry. 00:41:10.480 --> 00:41:11.480 Hang on just a second. 00:41:11.480 --> 00:41:14.400 That would probably help. 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. 00:41:22.080 --> 00:41:23.160 Okay. 00:41:23.160 --> 00:41:26.540 So residential irrigation, we've talked about this some, Mr. Ibeck, you had some questions 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 00:41:30.480 --> 00:41:31.760 definitely bring that back. 00:41:31.760 --> 00:41:33.880 So in this option, it's very similar to water. 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 00:41:37.160 --> 00:41:40.120 kind of walk you through the overall view of it here. 00:41:40.120 --> 00:41:44.720 So option one is, of course, the no change, this would keep the current irrigation residential 00:41:44.720 --> 00:41:46.880 rate structure that's in place. 00:41:46.880 --> 00:41:50.280 You can see what those rates are between the two groups here. 00:41:50.280 --> 00:41:54.840 Option two would be combining that winter and summer rate structure into one combined 00:41:54.840 --> 00:42:01.080 rate, establishing that new tier as zero to 7,500 gallons, and then option three would 00:42:01.080 --> 00:42:06.560 be establishing a tier from zero to 5,000 and combining that seasonal rate also. 00:42:06.560 --> 00:42:10.960 I will point out that not all residential customers have irrigation meters. 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 00:42:15.300 --> 00:42:21.320 do have them. 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. 00:42:24.880 --> 00:42:30.500 This table summarizes what that would look like based on the average usage. 00:42:30.500 --> 00:42:36.680 So 89% that we mentioned earlier, 32,806 residential customers will see a rate decrease. 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 00:42:41.360 --> 00:42:48.680 customers in those higher tiers above 15,000 actually see an increase based on their usage. 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 00:42:52.880 --> 00:42:56.040 is currently paying $46.62. 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. 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. 00:43:08.480 --> 00:43:13.400 We can come back to this also. 00:43:13.400 --> 00:43:16.320 Commercial rate recommendations, so we'll jump into commercial now. 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. 00:43:21.280 --> 00:43:25.140 In commercial, there is not a winter and summer seasonal rates. 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 00:43:29.280 --> 00:43:31.600 to leave what's in place. 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, 00:43:39.120 --> 00:43:47.240 but the average customer's bill will be $246.29 a month. 00:43:47.240 --> 00:43:50.960 And then commercial irrigation for those customers with commercial businesses, they have irrigation 00:43:50.960 --> 00:43:51.960 meters. 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 00:43:57.160 --> 00:43:59.040 summer volumetric rate. 00:43:59.040 --> 00:44:02.360 The facility charge, of course, stays consistent throughout the year. 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 00:44:07.760 --> 00:44:09.400 rate of $5.75. 00:44:09.400 --> 00:44:13.080 So under this option, a commercial customer with irrigation meters actually see a decrease 00:44:13.080 --> 00:44:18.400 of $10.65 a month, and that's based on 42,000 gallons of usage. 00:44:18.400 --> 00:44:22.120 So quite a bit more usage there. 00:44:22.120 --> 00:44:24.680 >> Mr. Chairman, I have a quick question. 00:44:24.680 --> 00:44:25.680 >> Yes, sir? 00:44:25.680 --> 00:44:31.920 >> Who typically constitutes a commercial irrigation customer? 00:44:31.920 --> 00:44:35.240 >> Who qualifies as a commercial irrigation customer? 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 00:44:40.680 --> 00:44:49.240 come up here and give some examples of some water irrigation customers on the commercial 00:44:49.240 --> 00:44:50.240 side. 00:44:50.240 --> 00:44:51.240 >> Good morning. 00:44:51.240 --> 00:44:57.520 A commercial irrigation customer would be like a large commercial property. 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 00:45:04.280 --> 00:45:07.840 around the project, so that's more of a more commercial customer. 00:45:07.840 --> 00:45:11.760 Does that answer your question? 00:45:11.760 --> 00:45:12.760 Sir? 00:45:12.760 --> 00:45:21.720 >> So typically a commercial irrigation customer is one who has relatively large grounds to 00:45:21.720 --> 00:45:22.720 irrigate? 00:45:22.720 --> 00:45:24.800 Is that more or less the idea? 00:45:24.800 --> 00:45:25.800 >> Yes, sir. 00:45:25.800 --> 00:45:26.800 >> Okay. 00:45:26.800 --> 00:45:27.800 Thank you. 00:45:27.800 --> 00:45:28.800 >> Okay. 00:45:28.800 --> 00:45:29.800 >> Okay. 00:45:29.800 --> 00:45:34.400 Let me pull up the presentation. 00:45:34.400 --> 00:45:39.080 We'll continue our way through it here. 00:45:39.080 --> 00:45:41.320 Okay. 00:45:41.320 --> 00:45:46.080 So for the PB members who have been here a while, these are the wholesale rates. 00:45:46.080 --> 00:45:50.280 We bring these back throughout every year because they are bound by contract, so we 00:45:50.280 --> 00:45:54.240 do adjust these rates each individual year as part of the budgeting process. 00:45:54.240 --> 00:45:57.760 The first one being the wholesale WW2 rate. 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 00:46:00.960 --> 00:46:01.960 was. 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 00:46:08.720 --> 00:46:14.540 is 85% of what the Dallas wholesale rate is, so that rate is currently .758. 00:46:14.540 --> 00:46:17.800 It will stay the same, .758. 00:46:17.800 --> 00:46:21.720 And then the pass through through Lake Chapman, we do have an agreement for this also. 00:46:21.720 --> 00:46:26.080 This one adjusts off the tuned CPI adjuster, so that adjuster did go up. 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, 00:46:30.580 --> 00:46:32.660 so that rate would actually increase this year. 00:46:32.660 --> 00:46:36.360 I think last year it stayed the same. 00:46:36.360 --> 00:46:37.600 And then wastewater rate changes. 00:46:37.600 --> 00:46:40.760 We just went ahead and put wastewater in the water presentation because it was just one 00:46:40.760 --> 00:46:44.040 slide so we didn't think we needed a separate presentation. 00:46:44.040 --> 00:46:46.960 These are adjustments to the dino's soil rate. 00:46:46.960 --> 00:46:51.120 These are cost of service adjustments, just using more soil for that product and more 00:46:51.120 --> 00:46:52.400 money we have involved in it. 00:46:52.400 --> 00:46:53.880 So just looking to recoup that cost. 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. 00:46:59.840 --> 00:47:03.320 And then if you buy from 10 to 99 yards, you get a 20 percent discount. 00:47:03.320 --> 00:47:05.720 That rate goes from 24 to 28. 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. 00:47:12.520 --> 00:47:13.520 Question right quick on that. 00:47:13.520 --> 00:47:14.520 Yes, sir. 00:47:14.520 --> 00:47:15.520 It's the volume. 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. 00:47:20.840 --> 00:47:22.240 So the prices are going up. 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 00:47:27.320 --> 00:47:29.640 lot more to produce? 00:47:29.640 --> 00:47:30.640 Let me ask. 00:47:30.640 --> 00:47:31.640 Let me ask Stephen. 00:47:31.640 --> 00:47:32.640 He knows about the operations. 00:47:32.640 --> 00:47:33.640 It's not in his head. 00:47:33.640 --> 00:47:34.640 I see that. 00:47:34.640 --> 00:47:35.640 Yes, sir. 00:47:35.640 --> 00:47:45.640 It's been become quite popular and we've actually had to purchase additional sand this 00:47:45.640 --> 00:47:48.800 year to generate more product. 00:47:48.800 --> 00:47:51.800 Is that more commercial use or? 00:47:51.800 --> 00:47:55.760 I can get that number for you, whether the breakdown, whether it's commercial or residential. 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 00:48:00.400 --> 00:48:03.400 that resource for gardening and stuff as well. 00:48:03.400 --> 00:48:04.400 That's a good general answer. 00:48:04.400 --> 00:48:05.920 That's all I needed to think of. 00:48:05.920 --> 00:48:06.920 And I did. 00:48:06.920 --> 00:48:14.840 If it's okay, you'd ask Tyler, sir, you had asked about the median consumption. 00:48:14.840 --> 00:48:22.800 Looks like residential is about $5,975 and commercial is $11,283. 00:48:22.800 --> 00:48:23.800 That's per bill? 00:48:23.800 --> 00:48:24.800 Yes. 00:48:24.800 --> 00:48:25.800 Okay. 00:48:25.800 --> 00:48:26.800 Thanks. 00:48:26.800 --> 00:48:27.800 All right. 00:48:27.800 --> 00:48:32.800 Let me pull this back up. 00:48:32.800 --> 00:48:47.520 I think we're just about through this presentation. 00:48:47.520 --> 00:48:49.320 This is a table we showed. 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 00:48:52.080 --> 00:48:56.280 fiscal years, what the rate increase or decrease were for the utilities. 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. 00:49:03.720 --> 00:49:06.720 Starting in fiscal year 2018, you can see we had some rate decreases. 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 00:49:11.200 --> 00:49:14.800 rate structure for the water customers, we would see a decrease for the average customer. 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 00:49:18.440 --> 00:49:22.140 would be built into here. 00:49:22.140 --> 00:49:24.760 So rate recommendation, kind of a recap. 00:49:24.760 --> 00:49:28.600 As I initially said, staff's recommendation for the water rate structure was option two, 00:49:28.600 --> 00:49:32.160 which established the zero to 7,500-gallon tier. 00:49:32.160 --> 00:49:35.680 Definitely if you give us feedback to keep the winter and summer blocks rate structure 00:49:35.680 --> 00:49:40.000 or zero to 5,000, we'll take that forward to council tomorrow. 00:49:40.000 --> 00:49:44.080 Commercial just option one, the regular water rate for commercial customers, not making 00:49:44.080 --> 00:49:45.760 any changes to that. 00:49:45.760 --> 00:49:50.640 The irrigation rate would be combining that winter and summer block structure into one 00:49:50.640 --> 00:49:52.360 combined seasonal rate. 00:49:52.360 --> 00:49:56.800 And then wholesale, just making those adjustments in accordance with the contracts, and then 00:49:56.800 --> 00:50:01.480 wastewater is making those changes to the dino soil rate. 00:50:01.480 --> 00:50:03.140 And then these are additional work sessions. 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 00:50:06.680 --> 00:50:07.680 that. 00:50:07.680 --> 00:50:08.680 Just give us your feedback today. 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 00:50:12.280 --> 00:50:13.280 those back to you. 00:50:13.280 --> 00:50:18.560 So tomorrow, this presentation is not listed here, does go to city council, with the budget 00:50:18.560 --> 00:50:21.200 workshop being next week on August the 2nd. 00:50:21.200 --> 00:50:24.440 So definitely a busy day next August or, you know, on the 2nd. 00:50:24.440 --> 00:50:25.800 So that is it. 00:50:25.800 --> 00:50:29.120 I will pull this down for additional questions if you have some. 00:50:29.120 --> 00:50:30.120 >> One more question. 00:50:30.120 --> 00:50:31.120 What was the hydrant rate? 00:50:31.120 --> 00:50:34.120 I didn't see that in the presentation. 00:50:34.120 --> 00:50:35.120 >> Let me go back. 00:50:35.120 --> 00:50:39.320 >> It was in the budget last presentation for -- 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 00:50:43.240 --> 00:50:44.240 hydrant rate. 00:50:44.240 --> 00:50:46.160 This year, we're not looking to make any changes to it. 00:50:46.160 --> 00:50:47.160 Just leave it alone. 00:50:47.160 --> 00:50:50.600 It was mentioned earlier as under recovering like $30,000. 00:50:50.600 --> 00:50:56.440 So it's not being adjusted, but it's currently under recovery a little bit, yes. 00:50:56.440 --> 00:50:57.440 >> Okay. 00:50:57.440 --> 00:50:58.440 Questions? 00:50:58.440 --> 00:51:03.440 Or discussion. 00:51:03.440 --> 00:51:04.440 You need a consensus. 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 00:51:08.240 --> 00:51:10.160 as we talk about the rate structure. 00:51:10.160 --> 00:51:15.200 >> I was wondering if somebody could repeat the median number that Stephen gave us. 00:51:15.200 --> 00:51:20.520 >> 5,975 is what I heard. 00:51:20.520 --> 00:51:28.280 >> For me, I don't mind merging into one rate, not having a seasonal rate. 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 00:51:32.000 --> 00:51:35.440 sure if that's how it is today. 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 00:51:42.040 --> 00:51:49.760 that it's the median is 5,975, I guess either way, I would be okay. 00:51:49.760 --> 00:51:52.240 So how about we start with Ben and work around it? 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. 00:51:58.200 --> 00:52:03.880 Less impact on those up on the top, but still encouraging conservation, as you said. 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. 00:52:09.960 --> 00:52:10.960 That's what I would lean toward. 00:52:10.960 --> 00:52:11.960 >> Okay. 00:52:11.960 --> 00:52:12.960 >> Yeah, I would agree. 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 00:52:18.880 --> 00:52:27.600 second tier in the summer anyway, so it's almost a de facto change in rate. 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 00:52:33.560 --> 00:52:34.560 lower average. 00:52:34.560 --> 00:52:35.560 >> Okay. 00:52:35.560 --> 00:52:36.560 >> Right. 00:52:36.560 --> 00:52:37.560 >> Got you. 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. 00:52:42.380 --> 00:52:43.380 >> Okay. 00:52:43.380 --> 00:52:44.380 >> I agree. 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 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 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. 00:53:00.320 --> 00:53:01.320 >> That's correct. 00:53:01.320 --> 00:53:02.320 >> That's correct. 00:53:02.320 --> 00:53:08.960 >> In terms of the ability of commercial irrigation, I don't have a very strong opinion. 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 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 00:53:22.920 --> 00:53:26.600 I really don't have enough information to give a strong recommendation. 00:53:26.600 --> 00:53:29.600 >> And did you say these are all revenue neutral for the city? 00:53:29.600 --> 00:53:30.600 >> They are revenue neutral. 00:53:30.600 --> 00:53:33.480 The costs came to you after you approved the budget, so the thought process behind these 00:53:33.480 --> 00:53:35.160 were revenue neutral. 00:53:35.160 --> 00:53:38.800 That cost me passed along to that 11% that those higher tier groups. 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 00:53:45.160 --> 00:53:46.840 the city at all. 00:53:46.840 --> 00:53:49.400 >> And we do need to get Mr. Reback's opinion. 00:53:49.400 --> 00:53:50.400 Go ahead, Lee. 00:53:50.400 --> 00:53:51.400 >> Thank you. 00:53:51.400 --> 00:53:58.360 Although I do have my concerns about going to the simplified residential rate, as I mentioned 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 00:54:04.900 --> 00:54:07.040 reaction to this thus far. 00:54:07.040 --> 00:54:12.720 As far as the commercial and commercial irrigation rates, I think in general simplification is 00:54:12.720 --> 00:54:13.720 good. 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 00:54:18.840 --> 00:54:25.880 naturally have a bias and interest in maintaining good control of their irrigation systems. 00:54:25.880 --> 00:54:31.000 So I would vote for option two or recommend option two rather than option three. 00:54:31.000 --> 00:54:32.000 >> Okay. 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 00:54:37.280 --> 00:54:38.280 tomorrow. 00:54:38.280 --> 00:54:39.280 >> Thank you. 00:54:39.280 --> 00:54:42.280 >> Definitely bring that back. 00:54:42.280 --> 00:54:43.280 >> Thank you very much. 00:54:43.280 --> 00:54:44.280 You did a good job. 00:54:44.280 --> 00:54:45.280 >> Thank you. 00:54:45.280 --> 00:54:47.200 And I think we have one more presentation for solid waste. 00:54:47.200 --> 00:54:48.200 >> Oh, yes, we do. 00:54:48.200 --> 00:54:49.200 Sorry. 00:54:49.200 --> 00:54:50.200 Thank you. 00:54:50.200 --> 00:55:05.960 >> Okay, so we will go through solid waste, a little bit shorter presentation, not quite 00:55:05.960 --> 00:55:09.840 as many slides, so get started here and changed on me. 00:55:09.840 --> 00:55:10.840 An overview of the presentation. 00:55:10.840 --> 00:55:14.360 So we'll talk about residential rates, commercial, landfill. 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 00:55:18.640 --> 00:55:25.440 talk about the contract rates for the wholesale agreements that we currently have in place. 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 00:55:28.720 --> 00:55:29.720 points here. 00:55:29.720 --> 00:55:32.880 The first thing I want to point out is that the residential refuse and recycling customer 00:55:32.880 --> 00:55:36.440 will not see a change in the rate. 00:55:36.440 --> 00:55:40.920 For their refuse and their recycling card, there would be no change to that service. 00:55:40.920 --> 00:55:44.760 Where they would see something, we are looking to discontinue a subscription fee for the 00:55:44.760 --> 00:55:46.840 yard waste and brush collection. 00:55:46.840 --> 00:55:50.520 If you remember a couple of years ago, we actually started a subscription fee for this 00:55:50.520 --> 00:55:54.840 service that was a dollar for craft bags and 50 cents for carts. 00:55:54.840 --> 00:55:58.400 We've had good participation in this program, we're looking to discontinue that rate, it 00:55:58.400 --> 00:56:00.120 is no longer needed. 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 00:56:04.400 --> 00:56:07.720 point it out to the Public Utilities Board. 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 00:56:13.440 --> 00:56:17.720 wanted to point that out to the people that may be listening online. 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, 00:56:25.440 --> 00:56:28.280 so I just wanted to point that out also. 00:56:28.280 --> 00:56:31.680 And then this is something new, we're looking to initiate this year for residential customers 00:56:31.680 --> 00:56:34.340 as an outside cart fee. 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 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. 00:56:44.640 --> 00:56:47.320 Operational changes, we want to include this in the slide, just a little bit different 00:56:47.320 --> 00:56:49.120 format this year. 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 00:56:53.220 --> 00:56:56.920 be collected from the curb once it is called in. 00:56:56.920 --> 00:57:00.560 And then the last bullet point is the bulk rates for called in material, construction 00:57:00.560 --> 00:57:03.560 waste, everything extra at the curb at the time of collection. 00:57:03.560 --> 00:57:06.640 So just wanted to point out those few things. 00:57:06.640 --> 00:57:14.720 Purchasing yard waste carts for homes that currently don't have the subscription, are 00:57:14.720 --> 00:57:18.120 they going to distribute the carts, or I guess you'd request a cart? 00:57:18.120 --> 00:57:19.120 Great question. 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 00:57:22.760 --> 00:57:23.960 purchase fee. 00:57:23.960 --> 00:57:24.960 That would still apply. 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 00:57:28.920 --> 00:57:34.400 purchase the cart, but you would not have a reoccurring subscription fee for that service. 00:57:34.400 --> 00:57:46.840 I'm sorry, I want to say the cart fee is $20, yeah, thank you, Eugene. 00:57:46.840 --> 00:58:02.000 Okay, let me get into the commercial, here we go. 00:58:02.000 --> 00:58:06.600 So commercial rate recommendations, we are looking to change the pricing structure for 00:58:06.600 --> 00:58:08.960 the front load and side load service. 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. 00:58:14.680 --> 00:58:16.360 And we'll point that out on the next slide for you. 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 00:58:19.960 --> 00:58:24.680 service that was completed about three years ago in the solid waste utility and also aligns 00:58:24.680 --> 00:58:28.440 with some new software we're looking to implement within this utility and the billing structure 00:58:28.440 --> 00:58:29.440 and what it can handle. 00:58:29.440 --> 00:58:32.040 So I wanted to point that out. 00:58:32.040 --> 00:58:38.520 A couple facts in here, there's 2,700 weekly commercial dumpsters, 104 of those dumpsters 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 00:58:41.920 --> 00:58:42.920 on the next slide. 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, 00:58:48.400 --> 00:58:55.320 9% multifamily and 5% hospital, and then we will look at the rate matrix next. 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. 00:58:58.920 --> 00:59:02.680 So the current rate structure that's in place is this first table. 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 00:59:07.160 --> 00:59:10.680 this one X means, is $74.16. 00:59:10.680 --> 00:59:16.260 If that dumpster gets dumped two times a week, the rate would be 148.32. 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 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, 00:59:27.240 --> 00:59:29.120 which is the one three times a week. 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, 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 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 00:59:45.080 --> 00:59:48.880 week in the box that's currently proposed, it's 311.52. 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, 00:59:52.560 --> 00:59:58.600 and from a billing standpoint of having that common multiplier to handle it in that software 00:59:58.600 --> 01:00:02.480 is a great thing for staff and reduces that staff time involved with it. 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 01:00:07.240 --> 01:00:11.380 a week, or six times a week, those customers would actually see a decrease. 01:00:11.380 --> 01:00:15.760 So those rates would decrease, you can see that number down here in this bottom box. 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 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. 01:00:26.680 --> 01:00:32.000 Does anybody have any questions on the, let me pull this down, yes sir. 01:00:32.000 --> 01:00:35.680 Was there a reason for the rate change for four times and greater? 01:00:35.680 --> 01:00:44.000 So previously, you know, I think it was meant to incentivize people to upsize their container, 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 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 01:00:51.640 --> 01:00:52.640 reasoning behind it. 01:00:52.640 --> 01:00:56.480 Before, the recommendation now with staff is to align it with cost of service to get 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 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 01:01:05.800 --> 01:01:06.800 under recovering. 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 01:01:10.800 --> 01:01:14.120 with the cost of service model, and actually accommodate that new software we're looking 01:01:14.120 --> 01:01:15.120 to implement. 01:01:15.120 --> 01:01:22.720 Would that necessitate any increase to kind of make up the difference, increase in kind 01:01:22.720 --> 01:01:25.840 of the constant rate otherwise? 01:01:25.840 --> 01:01:27.320 Like the one time a week rates? 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 01:01:31.080 --> 01:01:32.920 that up on the bottom end? 01:01:32.920 --> 01:01:33.920 If that's the direction... 01:01:33.920 --> 01:01:34.920 You didn't propose that, so I was asking... 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 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 01:01:43.520 --> 01:01:44.520 so. 01:01:44.520 --> 01:01:45.520 So I just wanted to make sure to point that out. 01:01:45.520 --> 01:01:46.520 That's kind of what I was asking. 01:01:46.520 --> 01:01:47.520 Absolutely. 01:01:47.520 --> 01:01:48.520 Yeah. 01:01:48.520 --> 01:01:49.520 Okay. 01:01:49.520 --> 01:01:50.520 Okay. 01:01:50.520 --> 01:02:03.920 I will proceed along. 01:02:03.920 --> 01:02:05.960 This is the recycling structure. 01:02:05.960 --> 01:02:06.960 You can see it here. 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 01:02:10.640 --> 01:02:14.960 size or refuse side, so you can see the current rate structure that's in place. 01:02:14.960 --> 01:02:18.520 For a three cubic yard, one time a week is $63.78. 01:02:18.520 --> 01:02:21.080 That rate is less than the refuse rate. 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, 01:02:24.000 --> 01:02:27.160 it removes the disposable component of the rate. 01:02:27.160 --> 01:02:30.120 So this rate is lower, and we talked about this a couple of fiscal years ago. 01:02:30.120 --> 01:02:33.320 Just wanted to make sure I pointed that out to the PB members. 01:02:33.320 --> 01:02:34.320 So propose. 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, 01:02:38.480 --> 01:02:40.840 and you can see what that would do in the very bottom. 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 01:02:45.000 --> 01:02:49.680 cubic yard container, they would see a decrease of $43.50 a month. 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 01:02:55.240 --> 01:02:58.040 not see any change in the structure. 01:02:58.040 --> 01:02:59.040 Question. 01:02:59.040 --> 01:03:06.640 So this will still encourage to recycle more, because this is lower than throwing it away, 01:03:06.640 --> 01:03:08.040 which is really important. 01:03:08.040 --> 01:03:12.880 It's actually being lower than what we have in place now. 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 01:03:16.480 --> 01:03:17.480 break on that container. 01:03:17.480 --> 01:03:18.480 Absolutely. 01:03:18.480 --> 01:03:19.480 Five days a week. 01:03:19.480 --> 01:03:20.480 Yeah. 01:03:20.480 --> 01:03:21.480 Absolutely. 01:03:21.480 --> 01:03:22.480 Thank you. 01:03:22.480 --> 01:03:23.480 I wanted to point that out. 01:03:23.480 --> 01:03:24.480 Yeah. 01:03:24.480 --> 01:03:25.480 It was great. 01:03:25.480 --> 01:03:26.480 Okay. 01:03:26.480 --> 01:03:29.480 Let me see here. 01:03:29.480 --> 01:03:35.480 There it goes. 01:03:35.480 --> 01:03:36.480 Okay. 01:03:36.480 --> 01:03:38.520 Great recommendations for the landfill. 01:03:38.520 --> 01:03:41.040 We have brought this back to you a couple years now. 01:03:41.040 --> 01:03:46.160 The sludge disposal rate, we do see this material continue to come into the landfill. 01:03:46.160 --> 01:03:48.120 That current rate is currently $50 a ton. 01:03:48.120 --> 01:03:50.960 We are looking to increase that to $60 a ton. 01:03:50.960 --> 01:03:55.200 Is the cost of handling that material, it is difficult to handle. 01:03:55.200 --> 01:03:59.440 Annual revenue increase associated with this is $82,000, which basically offsets some of 01:03:59.440 --> 01:04:03.800 that decrease we saw on that subscription fee earlier in the presentation. 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 01:04:08.840 --> 01:04:09.840 is proposing. 01:04:09.840 --> 01:04:12.900 If you do not live within the city limits. 01:04:12.900 --> 01:04:17.480 Change the unbagged brush weight from 20 to 25 to match the minimum load rate. 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 01:04:21.360 --> 01:04:22.360 of $25. 01:04:22.360 --> 01:04:26.080 We're just looking to make that consistent across the board. 01:04:26.080 --> 01:04:29.780 And then operational changes, so residential gate verification. 01:04:29.780 --> 01:04:32.880 We are looking to implement something that customers do need to verify. 01:04:32.880 --> 01:04:36.120 Their proof of residency when they come to the landfill and come to the weigh station 01:04:36.120 --> 01:04:37.120 to weigh in. 01:04:37.120 --> 01:04:39.480 And that could be simply a utility bill. 01:04:39.480 --> 01:04:42.840 I'm looking to bring that forward this year. 01:04:42.840 --> 01:04:47.080 I thought you had to do that anyway. 01:04:47.080 --> 01:04:49.320 I thought you had to show proof. 01:04:49.320 --> 01:04:50.760 No ma'am, not currently. 01:04:50.760 --> 01:04:51.760 No you. 01:04:51.760 --> 01:04:52.760 Sorry. 01:04:52.760 --> 01:04:53.760 Yeah. 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 01:04:58.180 --> 01:05:01.200 require that verification when they come to the window to make sure they're getting billed 01:05:01.200 --> 01:05:03.160 at the appropriate rate. 01:05:03.160 --> 01:05:04.160 Yeah, absolutely. 01:05:04.160 --> 01:05:06.000 But there's no verification currently. 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. 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 01:05:21.300 --> 01:05:22.300 driver's license. 01:05:22.300 --> 01:05:25.160 Can we not just base it on zip code? 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 01:05:31.000 --> 01:05:33.400 the service area or something like that. 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 01:05:38.000 --> 01:05:41.040 electric -- I mean, electronic bills. 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 01:05:46.760 --> 01:05:49.920 up while sitting there at the weigh station. 01:05:49.920 --> 01:05:51.600 So our Deputy Director, Eugene, is here. 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 01:05:55.320 --> 01:05:56.320 really quick. 01:05:56.320 --> 01:05:59.320 Let me ask him to come up. 01:05:59.320 --> 01:06:01.200 Good morning. 01:06:01.200 --> 01:06:02.200 Good morning. 01:06:02.200 --> 01:06:05.920 Well, this is -- there's been some discussion, ongoing discussion for a while. 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 01:06:11.560 --> 01:06:14.560 that come in and we really have no way of distinguishing who's who. 01:06:14.560 --> 01:06:19.480 To your point, you could receive one service but not another service, would you thought 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 01:06:24.440 --> 01:06:25.440 in the boundaries? 01:06:25.440 --> 01:06:29.920 The same product in that's outside of these boundaries. 01:06:29.920 --> 01:06:35.760 So via an electric bill, via sometimes your driver's license, I mean, of course there 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 01:06:38.480 --> 01:06:39.480 this is. 01:06:39.480 --> 01:06:43.080 But we thought an electric bill would be the most convenient process. 01:06:43.080 --> 01:06:46.680 But again, it's based on the direction and guidance we get here. 01:06:46.680 --> 01:06:49.720 You know, we can be further discussion based on your guidance. 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 01:06:55.420 --> 01:06:56.420 support the landfill. 01:06:56.420 --> 01:07:00.040 We've done all these other things for the last 50 years to build that landfill. 01:07:00.040 --> 01:07:02.840 So we should take advantage of the rates. 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 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 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 01:07:16.320 --> 01:07:18.880 they keep it and then I get it on the way back out. 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 01:07:23.040 --> 01:07:24.040 the landfill. 01:07:24.040 --> 01:07:27.480 But I just wonder if there's a -- And keep in mind there are several things 01:07:27.480 --> 01:07:31.520 going on in the environment that we really -- the city of Denton and our customers who 01:07:31.520 --> 01:07:33.400 enjoy Cadillac service just can't control. 01:07:33.400 --> 01:07:37.160 You have other landfills who are decreasing the input, I mean, what they're taking in. 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. 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 01:07:44.960 --> 01:07:45.960 of where this is coming from. 01:07:45.960 --> 01:07:50.320 Again, based on your direction, we thought the utility bill would kind of give some good 01:07:50.320 --> 01:07:54.240 points and a good sense of direction of where it's actually coming from. 01:07:54.240 --> 01:07:57.160 Yeah, and I just wish like something -- something that everybody already carries is something 01:07:57.160 --> 01:07:58.520 like a driver's license. 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 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, 01:08:12.200 --> 01:08:13.680 that might be too onerous. 01:08:13.680 --> 01:08:14.680 Right. 01:08:14.680 --> 01:08:17.920 Because there's already long lines to get in, especially, you know, weekends and stuff 01:08:17.920 --> 01:08:18.920 like that. 01:08:18.920 --> 01:08:23.320 So I just want to streamline that process while also, you know -- 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 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 01:08:35.680 --> 01:08:39.400 store it in like a registration or something in the car. 01:08:39.400 --> 01:08:42.140 So whenever you do come through the landfill, you have it available. 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 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 01:08:49.840 --> 01:08:50.840 kind of just keep moving forward. 01:08:50.840 --> 01:08:54.000 So the next time you come through, it's always available. 01:08:54.000 --> 01:08:56.040 Put it next to your proof of insurance. 01:08:56.040 --> 01:08:57.040 Yes. 01:08:57.040 --> 01:08:58.040 Yes. 01:08:58.040 --> 01:08:59.040 I've seen those -- I've seen those be very successful. 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 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 01:09:08.760 --> 01:09:14.240 that I have readily available, but it's not an either/or thing for you guys. 01:09:14.240 --> 01:09:16.080 It's just that only, right? 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 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 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 01:09:28.520 --> 01:09:30.160 outside the city. 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 01:09:34.960 --> 01:09:37.440 not in the city limits? 01:09:37.440 --> 01:09:39.560 Is it a big number? 01:09:39.560 --> 01:09:40.560 Do we know? 01:09:40.560 --> 01:09:50.880 If the vast majority really are Denton citizens, maybe that's good enough. 01:09:50.880 --> 01:09:51.880 I don't know. 01:09:51.880 --> 01:09:52.880 It's just a thought. 01:09:52.880 --> 01:09:58.200 You know, we're accustomed to keeping our insurance card in our glove box. 01:09:58.200 --> 01:09:59.200 Yes. 01:09:59.200 --> 01:10:02.800 How difficult would it be to add a utility bill? 01:10:02.800 --> 01:10:03.800 One utility bill. 01:10:03.800 --> 01:10:06.320 My insurance is digital also, actually, so. 01:10:06.320 --> 01:10:08.040 What's that then? 01:10:08.040 --> 01:10:10.720 I have everything, much like Devin was just saying, everything's digital. 01:10:10.720 --> 01:10:12.800 My car insurance is on an app on my phone. 01:10:12.800 --> 01:10:13.800 Yeah, I have that too. 01:10:13.800 --> 01:10:14.800 My utility bill's online. 01:10:14.800 --> 01:10:19.160 You know, I don't have papers in my glove box, really. 01:10:19.160 --> 01:10:21.960 Could I use a year old utility bill to go to the landfill? 01:10:21.960 --> 01:10:22.960 Right. 01:10:22.960 --> 01:10:27.160 I mean, it sounds like we almost want like a proof of residency certificate or something 01:10:27.160 --> 01:10:28.160 that's good for a year. 01:10:28.160 --> 01:10:29.160 You renew it every year. 01:10:29.160 --> 01:10:34.120 I mean, I don't know, but -- Well, it seems like what's important is that 01:10:34.120 --> 01:10:39.400 we're paying our utility bills, not necessarily that we're living full time in Denton. 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 01:10:43.960 --> 01:10:44.960 rate. 01:10:44.960 --> 01:10:52.520 So what might be the pertinent piece of information is are we contributing through our utility 01:10:52.520 --> 01:10:54.960 bills to the city? 01:10:54.960 --> 01:11:00.000 So it seems to me that the utility bill would be the relevant piece of information. 01:11:00.000 --> 01:11:01.000 Right. 01:11:01.000 --> 01:11:02.000 Yeah. 01:11:02.000 --> 01:11:06.760 If people spend half the year up in Wyoming or whatever, they still would be eligible 01:11:06.760 --> 01:11:09.280 for residential rate. 01:11:09.280 --> 01:11:10.280 And that's exactly right. 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 01:11:14.480 --> 01:11:18.360 and time in the city and the customer up front, almost like the airplane thing. 01:11:18.360 --> 01:11:20.040 You use most of your energy getting there. 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, 01:11:24.600 --> 01:11:29.200 and then you got it for safekeeping when you do come through the landfill. 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 01:11:34.840 --> 01:11:35.840 them away, right? 01:11:35.840 --> 01:11:36.840 Well, currently we don't. 01:11:36.840 --> 01:11:40.360 It's just, you know, shows them some identification and they come on through. 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 01:11:44.280 --> 01:11:47.880 approved for residency, will you charge them the non-resident rate? 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 01:11:53.960 --> 01:11:54.960 rate. 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 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 01:12:03.320 --> 01:12:07.360 that do not have those, and that brings up a whole other different discussion. 01:12:07.360 --> 01:12:08.360 Correct. 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 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 01:12:17.680 --> 01:12:20.760 bring up a good point about, does it have to be within 12 months? 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 01:12:25.480 --> 01:12:31.000 turned away after having driven four hours away to get her a driver's license permit. 01:12:31.000 --> 01:12:33.120 Thank goodness it was somebody that was reasonable. 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 01:12:37.880 --> 01:12:40.480 accommodate folks just like we do today. 01:12:40.480 --> 01:12:45.440 That will not change, but I think that the practical nature is that probably makes the 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 01:12:48.960 --> 01:12:54.280 the higher non-resident rate until you can prove that you are a resident. 01:12:54.280 --> 01:12:55.280 That's a really good point. 01:12:55.280 --> 01:12:56.280 Yeah, really good. 01:12:56.280 --> 01:12:57.280 Yes. 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, 01:13:02.080 --> 01:13:04.120 they're going to let him through, right? 01:13:04.120 --> 01:13:06.000 Mr. Rybeck has a question. 01:13:06.000 --> 01:13:07.000 Go ahead, Lee. 01:13:07.000 --> 01:13:08.000 I just wanted to comment. 01:13:08.000 --> 01:13:09.000 I think we're making a little too much out of this. 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 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 01:13:21.520 --> 01:13:25.320 to pay the higher rate or pay the rate at all if necessary? 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 01:13:28.880 --> 01:13:33.640 a huge inconvenience once people get used to having a utility bill in their glove box, 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 01:13:39.040 --> 01:13:40.040 it's that big a deal. 01:13:40.040 --> 01:13:41.040 So those are my two cents. 01:13:41.040 --> 01:13:42.040 Thank you. 01:13:42.040 --> 01:13:43.040 Thank you. 01:13:43.040 --> 01:13:44.040 Great feedback. 01:13:44.040 --> 01:13:57.760 Let me get this pulled up again. 01:13:57.760 --> 01:14:01.760 Okay. 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 01:14:06.320 --> 01:14:07.520 for residential customers. 01:14:07.520 --> 01:14:12.560 We currently do have some customers that are serviced at the residential department or 01:14:12.560 --> 01:14:15.440 residential trucks that have carts that are outside the city limits. 01:14:15.440 --> 01:14:18.280 These customers could be in the ETJ. 01:14:18.280 --> 01:14:21.320 Currently they're paying the same rate as someone that lives inside the city limits, 01:14:21.320 --> 01:14:24.520 and some of these customers are quite a ways out. 01:14:24.520 --> 01:14:27.440 So I just want to establish a new rate is what staff's recommending. 01:14:27.440 --> 01:14:30.720 Let me walk you through what those rates would be. 01:14:30.720 --> 01:14:34.960 Inside-of-the-city-denton customers for a 64-gallon cart, which is our smallest cart, 01:14:34.960 --> 01:14:35.960 is $20.51. 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 01:14:42.280 --> 01:14:44.480 or city limits. 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 01:14:47.840 --> 01:14:51.120 study that was completed this year as part of the budgeting process. 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 01:14:55.400 --> 01:14:57.320 cart and what we're proposing. 01:14:57.320 --> 01:15:01.440 So you can see we're proposing $30.69. 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 01:15:06.920 --> 01:15:10.720 because that trip fee and everything is already built in there, that cost. 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 01:15:17.720 --> 01:15:29.440 will see an increase. 01:15:29.440 --> 01:15:34.000 Rate recommendations for the contracted waste agreements, we'll go through the table in 01:15:34.000 --> 01:15:35.000 just a second. 01:15:35.000 --> 01:15:36.000 I want to point out a couple things. 01:15:36.000 --> 01:15:40.240 So the agreements will end in fiscal year 2023, so do anticipate those conversations 01:15:40.240 --> 01:15:46.020 to come back forward to you in the coming year before those agreements expire. 01:15:46.020 --> 01:15:50.240 And then, of course, the proforma anticipates them going away in 2023. 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 01:15:55.560 --> 01:15:59.200 these prices based on the consumer price index as called out in the contract. 01:15:59.200 --> 01:16:02.080 So that adjustment is 4.5%. 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, 01:16:05.440 --> 01:16:11.280 Frontier Waste, Little Lamb, the City of Little Lamb, Waste Connections, Republic, and CWD, 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, 01:16:14.880 --> 01:16:18.120 and what's proposed is down here in this very far right column. 01:16:18.120 --> 01:16:22.520 The contracted tons that you see are those tons specified in that contract that they 01:16:22.520 --> 01:16:30.400 will bring into this facility each year, so that is the minimum. 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 01:16:35.720 --> 01:16:40.480 up outside tonnage. 01:16:40.480 --> 01:16:42.320 We've had this discussion for years. 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 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 01:16:54.080 --> 01:16:56.080 we won't have a landfill. 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. 01:17:02.560 --> 01:17:06.280 Yeah, absolutely, and we'll make sure Brian, Eugene's here for those conversations, and 01:17:06.280 --> 01:17:09.840 I think Tony mentioned earlier, there's always comprehensive plans, so we can talk about 01:17:09.840 --> 01:17:12.080 all that stuff as we continue throughout the year. 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 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 01:17:25.680 --> 01:17:26.680 in? 01:17:26.680 --> 01:17:29.160 Absolutely, yeah, and I think that's part of those future conversations. 01:17:29.160 --> 01:17:33.120 We come back to you and say, "Hey, do we want to renew these agreements?" 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 01:17:37.880 --> 01:17:41.240 life expectancy of the landfill, or how much sooner would it be full? 01:17:41.240 --> 01:17:44.880 We definitely can talk to you about that with Brian, yeah, absolutely. 01:17:44.880 --> 01:17:51.820 Along the same lines, like when we had that discussion, the rationalization of these rates, 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 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 01:18:05.800 --> 01:18:11.960 and the space in our landfill, and make sure that if we suddenly are gaining customers, 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, 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. 01:18:23.960 --> 01:18:27.960 I'm assuming that's all covered in the comprehensive solid waste plan. 01:18:27.960 --> 01:18:38.160 I don't know, it is, Eugene, okay, it is covered in the comprehensive plan. 01:18:38.160 --> 01:18:43.080 Just one slide is all I have left, and we'll be okay with this one. 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 01:18:47.560 --> 01:18:51.440 go forward to council tomorrow, the budget workshop on August the 2nd. 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 01:18:55.680 --> 01:18:59.560 we get from city council tomorrow regarding the rate structure prior to that approval, 01:18:59.560 --> 01:19:05.040 and then the budget tax rate and everything is adopted on September 21st, so that concludes 01:19:05.040 --> 01:19:09.220 this solid waste presentation. 01:19:09.220 --> 01:19:10.800 So you need guidance from us? 01:19:10.800 --> 01:19:11.800 Yes, ma'am. 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 01:19:14.800 --> 01:19:16.560 proposing in this presentation? 01:19:16.560 --> 01:19:19.520 I'm good with what's being proposed. 01:19:19.520 --> 01:19:20.520 Anybody? 01:19:20.520 --> 01:19:22.520 Yeah, thumbs up. 01:19:22.520 --> 01:19:23.520 Everybody's good? 01:19:23.520 --> 01:19:24.520 Okay. 01:19:24.520 --> 01:19:25.520 All right. 01:19:25.520 --> 01:19:27.320 Well, that concludes the agenda. 01:19:27.320 --> 01:19:29.080 Do we have a motion to adjourn? 01:19:29.080 --> 01:19:30.080 We'll move. 01:19:30.080 --> 01:19:31.080 Thank you, Billy. 01:19:31.080 --> 01:19:32.080 We adjourned. 01:19:32.080 --> 01:19:33.080 We are adjourned. 01:19:33.080 --> 01:19:34.080 You answered that one quick. 01:19:34.080 --> 01:19:34.080 We are adjourned.