1 00:00:00,000 --> 00:00:07,240 Okay, it is nine o'clock and we do have a quorum so we'll call to order the public utilities 2 00:00:07,240 --> 00:00:12,140 board for the city of Denton for Monday October 11th, 2021. 3 00:00:12,140 --> 00:00:16,980 Is there anyone in the public wishing to speak? 4 00:00:16,980 --> 00:00:19,460 Is there anyone on the phone? 5 00:00:19,460 --> 00:00:23,680 Kim, do you know if anyone's on the phone? 6 00:00:23,680 --> 00:00:24,680 No? 7 00:00:24,680 --> 00:00:26,840 All right, then we'll go into our regular meeting. 8 00:00:26,840 --> 00:00:29,860 The first item is our consent agenda. 9 00:00:29,860 --> 00:00:36,360 Does any board member wish to pull one of the items of A, B, or C? 10 00:00:36,360 --> 00:00:40,280 I'm looking at Ben. 11 00:00:40,280 --> 00:00:45,640 Go ahead, Ben. 12 00:00:45,640 --> 00:00:47,000 I can't hear you. 13 00:00:47,000 --> 00:00:52,520 Are you muted? 14 00:00:52,520 --> 00:00:53,520 I am talking. 15 00:00:53,520 --> 00:00:54,520 Okay. 16 00:00:54,520 --> 00:00:55,520 I'm sorry. 17 00:00:55,520 --> 00:00:56,520 Go ahead again, Ben. 18 00:00:56,520 --> 00:00:57,760 We didn't hear it. 19 00:00:57,760 --> 00:00:58,760 That's okay. 20 00:00:58,760 --> 00:01:00,240 Item B is in boy. 21 00:01:00,240 --> 00:01:01,240 Okay. 22 00:01:01,240 --> 00:01:03,240 Item B is in boy. 23 00:01:03,240 --> 00:01:05,440 All right. 24 00:01:05,440 --> 00:01:10,920 Then do we have a motion to approve items A and C? 25 00:01:10,920 --> 00:01:11,920 So moved. 26 00:01:11,920 --> 00:01:12,920 Barbara, moved. 27 00:01:12,920 --> 00:01:15,320 Do we have a second? 28 00:01:15,320 --> 00:01:16,320 Larry seconded. 29 00:01:16,320 --> 00:01:17,920 All in favor say aye. 30 00:01:17,920 --> 00:01:18,920 Aye. 31 00:01:18,920 --> 00:01:23,000 Okay, that includes Ben. 32 00:01:23,000 --> 00:01:24,000 Then item B. 33 00:01:24,000 --> 00:01:32,760 Yeah, I really just had one quick question about that. 34 00:01:32,760 --> 00:01:39,040 It was talking about a switch between the type of steel, and it said stainless steel 35 00:01:39,040 --> 00:01:40,440 was preferred. 36 00:01:40,440 --> 00:01:41,440 I was curious. 37 00:01:41,440 --> 00:01:42,440 Why is it preferred? 38 00:01:42,440 --> 00:01:43,440 What's the difference? 39 00:01:43,440 --> 00:01:47,040 What's the purpose of the switch, exactly? 40 00:01:47,040 --> 00:01:54,160 Do we have someone from staff? 41 00:01:54,160 --> 00:02:04,080 Madam Chair, let me see if Stephen Gay or one of his staff members is on the line. 42 00:02:04,080 --> 00:02:06,120 Okay. 43 00:02:06,120 --> 00:02:11,400 Yeah, this is Stephen Gay. 44 00:02:11,400 --> 00:02:16,520 I was going to wait to see if Chris could answer the question, but essentially stainless 45 00:02:16,520 --> 00:02:25,240 steel is more resistant to the rusting, and in the moist environment, it's preferred over 46 00:02:25,240 --> 00:02:27,240 the galvanized. 47 00:02:27,240 --> 00:02:31,600 Okay, that was it. 48 00:02:31,600 --> 00:02:32,600 Thank you. 49 00:02:32,600 --> 00:02:33,600 Okay. 50 00:02:33,600 --> 00:02:38,560 Do we have a motion to approve item B? 51 00:02:38,560 --> 00:02:40,080 Mr. Beck, motion to approve? 52 00:02:40,080 --> 00:02:41,080 I'll second. 53 00:02:41,080 --> 00:02:43,120 Ben, you can be the second. 54 00:02:43,120 --> 00:02:45,640 All in favor say aye. 55 00:02:45,640 --> 00:02:46,640 Aye. 56 00:02:46,640 --> 00:02:50,120 All right, that carries. 57 00:02:50,120 --> 00:02:53,160 Next item, items for individual consideration. 58 00:02:53,160 --> 00:02:55,880 Consider the approval of the September 13th minutes. 59 00:02:55,880 --> 00:02:58,760 Does anyone have any changes or corrections? 60 00:02:58,760 --> 00:03:03,760 Okay, seeing none, do we have a motion to approve the minutes? 61 00:03:03,760 --> 00:03:05,160 So moved. 62 00:03:05,160 --> 00:03:07,320 Devin moved. 63 00:03:07,320 --> 00:03:08,320 Barbara seconded. 64 00:03:08,320 --> 00:03:10,320 All in favor say aye. 65 00:03:10,320 --> 00:03:11,320 Aye. 66 00:03:11,320 --> 00:03:12,320 That carries. 67 00:03:12,320 --> 00:03:13,320 Okay. 68 00:03:13,320 --> 00:03:17,560 Item B, consider recommending the adoption of an ordinance for the city of Denton to 69 00:03:17,560 --> 00:03:28,120 declare the intent to reimburse capital expenditures for the electric utility. 70 00:03:28,120 --> 00:03:49,840 There we go. 71 00:03:49,840 --> 00:03:50,840 Good morning. 72 00:03:50,840 --> 00:03:51,920 Randy Klingle, Treasury Manager. 73 00:03:51,920 --> 00:04:00,360 I'm here to present to you a short slide deck regarding our annual reimbursement ordinance. 74 00:04:00,360 --> 00:04:06,480 The purpose of this ordinance is due to the fact that the IRS wants the city to declare 75 00:04:06,480 --> 00:04:11,260 its intent to reimburse itself with tax bonds that will be issued at a future date. 76 00:04:11,260 --> 00:04:15,420 Generally, we sell the bonds 12 months after this ordinance is approved. 77 00:04:15,420 --> 00:04:19,200 We like to do it before the end of the fiscal year for accounting purposes. 78 00:04:19,200 --> 00:04:23,840 And this is also allowed in our current city's debt policy for us to do this. 79 00:04:23,840 --> 00:04:28,200 The projects that you will see on the slides going forward, we're not gonna go through 80 00:04:28,200 --> 00:04:29,560 them item by item. 81 00:04:29,560 --> 00:04:32,840 They are the budgeted items for the utility departments. 82 00:04:32,840 --> 00:04:36,480 So these were just approved in the September 21st overall budget for the city. 83 00:04:36,480 --> 00:04:41,720 So there should be nothing new here for you to see, but these are the same projects. 84 00:04:41,720 --> 00:04:48,200 The water projects are totaling a 34.4 for their budget for this current year. 85 00:04:48,200 --> 00:04:50,520 Wastewater projects has a longer list. 86 00:04:50,520 --> 00:04:54,840 There's three slides here, but also in your backup, I'll note that your AIS has a very 87 00:04:54,840 --> 00:04:59,240 small narrative detail on the highlights of what they're doing this fiscal year. 88 00:04:59,240 --> 00:05:04,840 There's large projects that are going on, but there's a small narrative in your backup. 89 00:05:04,840 --> 00:05:10,720 Wastewater projects continue with a total of 44.2 million. 90 00:05:10,720 --> 00:05:17,160 Solid Waste has a budget of 2.5, working on the scale house and some fleet facility. 91 00:05:17,160 --> 00:05:22,800 Wastewater projects are totaling 52.9 this year, which brings your utilities to a grand 92 00:05:22,800 --> 00:05:31,320 total of 134.1, and this is their budget for the fiscal year that we just started. 93 00:05:31,320 --> 00:05:35,800 So our next steps are for staff to go to the bond oversight committee, where we will take 94 00:05:35,800 --> 00:05:40,000 the geo bond portion of the total project list for review. 95 00:05:40,000 --> 00:05:43,480 Then we'll come back to PUB and to council regarding the notice of intent. 96 00:05:43,480 --> 00:05:47,320 At this time, this project dollars most likely will reduce. 97 00:05:47,320 --> 00:05:51,520 We're not going until probably April for that, so they have some time to review the projects 98 00:05:51,520 --> 00:05:53,480 and the current funds that they have available. 99 00:05:53,480 --> 00:06:00,200 Then in May, we will go for a parameters ordinance for council, and then on May 22nd, we will 100 00:06:00,200 --> 00:06:05,400 have a project bond sale and possible proceeds in mid-summer, possibly in June. 101 00:06:05,400 --> 00:06:06,400 Yes, ma'am. 102 00:06:06,400 --> 00:06:15,160 - I just have a general question, is the bond oversight committee, is that the public or 103 00:06:15,160 --> 00:06:16,160 is that staff? 104 00:06:16,160 --> 00:06:17,160 - It's public. 105 00:06:17,160 --> 00:06:18,160 Yes, ma'am. 106 00:06:18,160 --> 00:06:20,600 - And the council selects? 107 00:06:20,600 --> 00:06:26,280 - Yes, they go through that program in 2019 when we had the bond election, they began 108 00:06:26,280 --> 00:06:27,880 that committee process. 109 00:06:27,880 --> 00:06:31,600 They went through the summer, had the election in November of 2019, and some of those stayed 110 00:06:31,600 --> 00:06:35,120 on, and they try to meet quarterly to review all projects. 111 00:06:35,120 --> 00:06:39,800 - Okay, thank you. 112 00:06:39,800 --> 00:06:44,440 - Thank you, and that was all of my slides, so any questions further than that? 113 00:06:44,440 --> 00:06:46,440 - Other questions? 114 00:06:46,440 --> 00:06:49,440 Ben, no question from you, right? 115 00:06:49,440 --> 00:06:50,440 Okay. 116 00:06:50,440 --> 00:06:51,720 All right, no further questions. 117 00:06:51,720 --> 00:06:56,400 Do we have a motion to approve? 118 00:06:56,400 --> 00:06:58,000 Mary Beck is approving. 119 00:06:58,000 --> 00:06:59,000 Motion to approve. 120 00:06:59,000 --> 00:07:00,000 Second? 121 00:07:00,000 --> 00:07:01,000 Barbara Russell. 122 00:07:01,000 --> 00:07:02,880 All in favor, say aye. 123 00:07:02,880 --> 00:07:03,880 - Aye. 124 00:07:03,880 --> 00:07:04,880 - Opposed? 125 00:07:04,880 --> 00:07:05,880 - Aye. 126 00:07:05,880 --> 00:07:08,200 - Thank you, Ben. 127 00:07:08,200 --> 00:07:12,320 Item C, consider recommending the adoption of an ordinance for the city of Denton, a 128 00:07:12,320 --> 00:07:17,160 Texas Home Rule Municipal Corporation, authorizing the city manager to execute a contract with 129 00:07:17,160 --> 00:07:27,520 Floyd Smith Concrete in the five-year not to exceed amount of $39 million. 130 00:07:27,520 --> 00:07:45,520 - Good morning, Madam Chair, members of the PB. 131 00:07:45,520 --> 00:07:46,520 My name is Ethan Cox. 132 00:07:46,520 --> 00:07:49,480 I'm the general manager for public works for the city of Denton. 133 00:07:49,480 --> 00:07:54,160 The item that you have before you this morning is for concrete repair and installation services. 134 00:07:54,160 --> 00:07:56,080 This is not related to our capital projects. 135 00:07:56,080 --> 00:07:57,960 Those are typically contracted separately. 136 00:07:57,960 --> 00:08:04,920 This is really for spot pairs and smaller projects that are less than $400,000 in cost. 137 00:08:04,920 --> 00:08:10,120 This is a city-wide contract, although public works uses about 70% of all the services. 138 00:08:10,120 --> 00:08:13,760 That's our drainage streets, traffic, and parks and recreation. 139 00:08:13,760 --> 00:08:18,440 We do have some utilities that are involved as well with water, wastewater, solid waste, 140 00:08:18,440 --> 00:08:22,520 and I believe electric sometimes utilizes this contract as well. 141 00:08:22,520 --> 00:08:25,800 You'll see here on this slide, we've included some of the types of work that you'll typically 142 00:08:25,800 --> 00:08:28,560 see us use this contract for. 143 00:08:28,560 --> 00:08:32,560 I would say about 50% of our overall annual spend, which up to this point is about $6 144 00:08:32,560 --> 00:08:34,280 million a year. 145 00:08:34,280 --> 00:08:37,160 About 50% of that we plan going into the year. 146 00:08:37,160 --> 00:08:40,480 These repairs that are scheduled and anticipated. 147 00:08:40,480 --> 00:08:44,060 About half of the rest of that expenditure is for emergency repairs as well as citizen 148 00:08:44,060 --> 00:08:49,640 requests and issues that staff identifies in the field in the course of our ordinary work. 149 00:08:49,640 --> 00:08:53,720 We have been seeing about a 7% cost escalation on an annual basis. 150 00:08:53,720 --> 00:08:58,200 We expect that to continue as a result of some of the supply chain shortages we're seeing 151 00:08:58,200 --> 00:08:59,200 with the pandemic. 152 00:08:59,200 --> 00:09:04,280 Over here on the right, you can see our breakdown on the ... This is a three-year contract with 153 00:09:04,280 --> 00:09:06,640 two optional one-year renewals. 154 00:09:06,640 --> 00:09:09,440 We also have $4 million in there for contingencies. 155 00:09:09,440 --> 00:09:17,000 Over a five-year period, it's an estimated total contract spend of $39 million. 156 00:09:17,000 --> 00:09:20,960 For the solicitation, we did send this out to 486 prospective vendors. 157 00:09:20,960 --> 00:09:26,480 We had about 21 express interest or at least view the solicitation on wave. 158 00:09:26,480 --> 00:09:29,520 We did only have one response from a vendor. 159 00:09:29,520 --> 00:09:35,720 This is the contractor we've worked with, Floyd Smith, for over 20 years here locally. 160 00:09:35,720 --> 00:09:38,720 In terms of only getting one response, I know that's usually a question we look at. 161 00:09:38,720 --> 00:09:41,840 I think from a staff perspective, there's a couple of things there. 162 00:09:41,840 --> 00:09:46,140 I mentioned the pandemic, so we're not seeing as many bidders on some of these just because 163 00:09:46,140 --> 00:09:48,680 they don't know if they can fulfill the obligations. 164 00:09:48,680 --> 00:09:54,080 I think the other thing with a contract like this, these are small localized repairs. 165 00:09:54,080 --> 00:09:57,200 You're mobilizing every day, two or three times a day. 166 00:09:57,200 --> 00:10:01,200 For vendors outside of Denton, that can be a challenge. 167 00:10:01,200 --> 00:10:04,860 We understand that's always a concern, but this wasn't necessarily unexpected for us 168 00:10:04,860 --> 00:10:09,640 and we feel like we have a good relationship with the contractor and Floyd Smith. 169 00:10:09,640 --> 00:10:15,880 From a staff perspective, we recommend that the PB recommend approval to the city council 170 00:10:15,880 --> 00:10:17,640 for the concrete repair services. 171 00:10:17,640 --> 00:10:23,520 Again, it's a two-year contract, I misspoke earlier, with the option for three one-year 172 00:10:23,520 --> 00:10:27,480 renewals and that total not to exceed amount of 39 million. 173 00:10:27,480 --> 00:10:30,160 I'm happy to stand for any questions. 174 00:10:30,160 --> 00:10:31,160 Questions? 175 00:10:31,160 --> 00:10:33,680 Yes, ma'am. 176 00:10:33,680 --> 00:10:40,280 I don't think I have seen as many sidewalks and curbs being worked on in our city since 177 00:10:40,280 --> 00:10:42,320 we've lived here. 178 00:10:42,320 --> 00:10:49,560 Are we behind and catching up because they're in neighborhoods that are older neighborhoods 179 00:10:49,560 --> 00:10:55,920 and it just seems like everywhere I go, there's a sidewalk or a curb being worked on. 180 00:10:55,920 --> 00:10:59,880 Yeah, I think there's obviously our capital projects where anytime we go into the capital 181 00:10:59,880 --> 00:11:04,920 project, we want to look at everything holistically, not just the street repair and reconstruction 182 00:11:04,920 --> 00:11:06,360 as we have in the past. 183 00:11:06,360 --> 00:11:11,120 With those projects, you're going to see curb and gutter, sidewalks, sometimes you may be 184 00:11:11,120 --> 00:11:14,360 looking at bike lanes and lighting being installed as well. 185 00:11:14,360 --> 00:11:20,280 I think from a maintenance and repair standpoint, really, we're trying to be more proactive. 186 00:11:20,280 --> 00:11:24,720 I think in the past, we would really just wait until we saw an issue out in the field 187 00:11:24,720 --> 00:11:27,160 or a citizen contacted us. 188 00:11:27,160 --> 00:11:31,560 Really, we've put an emphasis the last couple of years on identifying where there's gaps, 189 00:11:31,560 --> 00:11:35,000 where there's trip hazards, where there are things like that and really trying to program 190 00:11:35,000 --> 00:11:36,000 that work. 191 00:11:36,000 --> 00:11:40,480 That 50% of the contract spend is really geared toward being proactive and scheduling some 192 00:11:40,480 --> 00:11:45,200 of those things so that we're not as reactive and not waiting for a citizen to complain. 193 00:11:45,200 --> 00:11:49,200 So we're not fixing a straight and then tearing it up to do a water line? 194 00:11:49,200 --> 00:11:50,200 No. 195 00:11:50,200 --> 00:11:51,200 Ideally, that would be what we avoid. 196 00:11:51,200 --> 00:11:52,200 Right. 197 00:11:52,200 --> 00:11:53,200 Absolutely. 198 00:11:53,200 --> 00:11:54,200 Good idea. 199 00:11:54,200 --> 00:11:58,160 Oh, Mr. Beck, go ahead. 200 00:11:58,160 --> 00:11:59,600 Quick question for my own edification. 201 00:11:59,600 --> 00:12:03,720 I'm in a new development where the developer's fixing to get out of there and already we've 202 00:12:03,720 --> 00:12:07,600 got a couple of areas on the sidewalk that are broken and I anticipate they'll fix it, 203 00:12:07,600 --> 00:12:13,880 but just out of curiosity, what's the timeframe that they're obligated to fix once they're 204 00:12:13,880 --> 00:12:16,240 done and out of there? 205 00:12:16,240 --> 00:12:17,240 I'm not sure. 206 00:12:17,240 --> 00:12:21,840 I'm not as involved with the development side of approval, but I do know that we do have 207 00:12:21,840 --> 00:12:26,200 warranties for developers and typically what I've seen in those, I've seen two and three 208 00:12:26,200 --> 00:12:28,740 year warranty periods for those. 209 00:12:28,740 --> 00:12:32,360 I don't know if that's a standard for the city, but if you're seeing a developer that's 210 00:12:32,360 --> 00:12:36,240 stepping out of there and part of what they've installed is already failing, that should 211 00:12:36,240 --> 00:12:38,120 be covered under the warranty. 212 00:12:38,120 --> 00:12:42,400 If you have specifics, if you want to shoot me an email, we can get that over to our inspections 213 00:12:42,400 --> 00:12:44,000 division and make sure they're aware of it. 214 00:12:44,000 --> 00:12:45,600 Well, I've been dealing with developers. 215 00:12:45,600 --> 00:12:50,520 I feel certain that they'll take care of it, but good to know where I can go if they don't. 216 00:12:50,520 --> 00:12:51,520 Yes, sir. 217 00:12:51,520 --> 00:12:52,520 Thanks, sir. 218 00:12:52,520 --> 00:12:53,520 Other questions? 219 00:12:53,520 --> 00:12:58,960 Do we have a motion to approve item C? 220 00:12:58,960 --> 00:13:00,840 So moved. 221 00:13:00,840 --> 00:13:01,840 Barber moved. 222 00:13:01,840 --> 00:13:04,920 Do we have a second? 223 00:13:04,920 --> 00:13:05,920 Devin second. 224 00:13:05,920 --> 00:13:06,920 All those in favor say aye. 225 00:13:06,920 --> 00:13:07,920 Aye. 226 00:13:07,920 --> 00:13:08,920 Aye. 227 00:13:08,920 --> 00:13:09,920 Opposed? 228 00:13:09,920 --> 00:13:10,920 Thank you very much. 229 00:13:10,920 --> 00:13:11,920 Thanks, Ben. 230 00:13:11,920 --> 00:13:12,920 All right. 231 00:13:12,920 --> 00:13:13,920 Management reports. 232 00:13:13,920 --> 00:13:17,280 Madam Chair, PB members, so we have a couple of reports that we've submitted to you. 233 00:13:17,280 --> 00:13:20,320 One was the water cost of service study. 234 00:13:20,320 --> 00:13:26,800 I think someone had requested that, and then we have the July 2021 dashboard for the Dent 235 00:13:26,800 --> 00:13:27,800 Energy Center. 236 00:13:27,800 --> 00:13:34,040 Nick Vincent is on the line if anyone has a question regarding those two reports. 237 00:13:34,040 --> 00:13:38,800 And the third report is this customer service integrated utility payment solution contract. 238 00:13:38,800 --> 00:13:44,000 Either Ryan Adams or Krista Foster are on the line. 239 00:13:44,000 --> 00:13:48,600 So before I go to the next item, if there's any questions on any of those reports, I'll 240 00:13:48,600 --> 00:13:49,600 be happy to respond. 241 00:13:49,600 --> 00:13:51,200 Mr. Beck, go ahead. 242 00:13:51,200 --> 00:13:53,720 Yeah, just a couple of things popped out to me. 243 00:13:53,720 --> 00:13:56,640 First, I want to congratulate whoever put the report together. 244 00:13:56,640 --> 00:14:00,800 I mean, for a lay person like me where it's hard to get your head wrapped around a lot 245 00:14:00,800 --> 00:14:05,440 of this information, I thought it was well done, and I was able to understand it reasonably 246 00:14:05,440 --> 00:14:06,440 well. 247 00:14:06,440 --> 00:14:12,040 But a couple of things did pop out to me, if you could allow me to ask you about it. 248 00:14:12,040 --> 00:14:19,480 In addition to the water operation and maintenance costs, utility, it says the utility pays a 249 00:14:19,480 --> 00:14:26,560 5% annual franchise fee to the city and a 3.5% return on investment to the city. 250 00:14:26,560 --> 00:14:30,900 It says the fees are based upon rate revenue, the franchise fee is calculated within the 251 00:14:30,900 --> 00:14:34,800 model based upon the model's calculated revenue. 252 00:14:34,800 --> 00:14:42,520 My question is, is this miscellaneous revenue that helps fund, what, city capital improvements 253 00:14:42,520 --> 00:14:44,960 or some other thing? 254 00:14:44,960 --> 00:14:47,720 So let me see if Nick is on the line, see if he can respond to that. 255 00:14:47,720 --> 00:14:50,120 If not, I can give it a shot. 256 00:14:50,120 --> 00:14:51,120 Nick? 257 00:14:51,120 --> 00:14:52,120 Yes, I'm here. 258 00:14:52,120 --> 00:14:53,120 Can you hear me? 259 00:14:53,120 --> 00:14:54,120 Yes. 260 00:14:54,120 --> 00:14:58,400 So Nick Vincent, assistant director of finance, great question. 261 00:14:58,400 --> 00:15:03,120 So I believe your question would be is the return on investment and the franchise fees 262 00:15:03,120 --> 00:15:05,680 that go to the general fund, what do those go to funds? 263 00:15:05,680 --> 00:15:06,680 Is that your question? 264 00:15:06,680 --> 00:15:10,200 It goes to the general fund then. 265 00:15:10,200 --> 00:15:14,240 So it does go to the general fund for a couple of different reasons, or for a couple of different 266 00:15:14,240 --> 00:15:17,680 purposes, so I can kind of walk you through it really quick. 267 00:15:17,680 --> 00:15:22,520 So the franchise fees go to the general fund, those are eventually funneled over to the streets 268 00:15:22,520 --> 00:15:27,440 fund for street infrastructure, and two, for the street improvement fund, so used around 269 00:15:27,440 --> 00:15:32,080 the community for different improvements within streets, and I know Ethan had presented a 270 00:15:32,080 --> 00:15:40,200 couple items to go, that's a perfect example of what those funds go to fund, is that department. 271 00:15:40,200 --> 00:15:44,240 And the return on investment does go to the general fund just to cover overhead costs, 272 00:15:44,240 --> 00:15:50,360 so it's the general fund's return on investment for owning those utilities, hopefully that 273 00:15:50,360 --> 00:15:51,360 answers your question. 274 00:15:51,360 --> 00:15:52,360 Yeah, it does. 275 00:15:52,360 --> 00:15:57,720 And this applies to both water and wastewater, right? 276 00:15:57,720 --> 00:16:05,400 Yes sir, actually the franchise fees and returns on investment applies to each of the utilities, 277 00:16:05,400 --> 00:16:10,800 with the exception of solid waste, so water, waste water, and electric, each pay a franchise 278 00:16:10,800 --> 00:16:14,960 fee and return on investment, and solid waste pays a franchise fee that does not pay a return 279 00:16:14,960 --> 00:16:15,960 on investment. 280 00:16:15,960 --> 00:16:23,960 Okay, and what was, what is the, what's it called, auction proceeds under these? 281 00:16:23,960 --> 00:16:24,960 Yes. 282 00:16:24,960 --> 00:16:32,920 Yeah, great question, so auction proceeds are simply just as it sounds, that is the 283 00:16:32,920 --> 00:16:38,560 utilities sell at its assets, or dispose of those assets through auction, so you may remember 284 00:16:38,560 --> 00:16:42,640 a couple meetings ago we had Terry Cater, the fleet superintendent, give a presentation 285 00:16:42,640 --> 00:16:48,800 regarding vehicles, and the city purchased new vehicles, we sell from those older assets, 286 00:16:48,800 --> 00:16:54,920 we bring those revenues into the funds to sell of assets, or sell of vehicles, yeah. 287 00:16:54,920 --> 00:17:00,200 Okay, that makes sense, that's kind of what it sounds like, and then last thing, why wasn't 288 00:17:00,200 --> 00:17:06,400 it determined by the city that no growth was assumed in the collection of water and wastewater 289 00:17:06,400 --> 00:17:14,760 impact fees, it's just a static amount for the next five years, why was that? 290 00:17:14,760 --> 00:17:20,400 So a great question, so a couple years ago the city updated the impact fee study for 291 00:17:20,400 --> 00:17:26,000 the water and wastewater utility, but that study did look at a 10-year recoverable cost 292 00:17:26,000 --> 00:17:31,520 that each of the utilities could recover through impact fees, that amount happens to be, for 293 00:17:31,520 --> 00:17:39,040 example, for water around 60 million, I believe for wastewater around 45 or 49 million, what 294 00:17:39,040 --> 00:17:44,720 we simply did is we took that amount, divided it over 10 years, that is a 10-year amount 295 00:17:44,720 --> 00:17:49,560 we're going to recover from the community, from growth coming in, so from the impact 296 00:17:49,560 --> 00:17:54,640 of those growths on those different utility systems, is it exact science, the impact fee 297 00:17:54,640 --> 00:18:00,000 itself does consider growth, we just simply took that amount, divided it evenly over 10 298 00:18:00,000 --> 00:18:05,440 years, not really knowing what year we would receive more or less, and I will tell you 299 00:18:05,440 --> 00:18:10,400 that fluctuates year to year, I mean this year for example, water has received somewhere 300 00:18:10,400 --> 00:18:15,520 around 7 million dollars in impact fees, when we budgeted it somewhere around 6 million, 301 00:18:15,520 --> 00:18:18,720 so I mean that definitely does fluctuate year to year. 302 00:18:18,720 --> 00:18:25,160 And this took into consideration the 100 coal development out on 35? 303 00:18:25,160 --> 00:18:29,160 Great question, so the current impact fee study does not contemplate 100 coal ranch 304 00:18:29,160 --> 00:18:34,240 development, one thing we've been talking about along with Stephen Gaye, the water waste 305 00:18:34,240 --> 00:18:40,280 water utility director and the city management team is updating that impact fee study prior 306 00:18:40,280 --> 00:18:45,400 to the five-year period to include that development, so that very likely could come back to you 307 00:18:45,400 --> 00:18:49,880 in the near future, we likely will not wait for five years to update that study, so I 308 00:18:49,880 --> 00:18:54,680 think that study was updated in 2018 or 2019, so we're approaching the third year of that 309 00:18:54,680 --> 00:18:55,680 study. 310 00:18:55,680 --> 00:18:59,320 Okay, great, thank you. 311 00:18:59,320 --> 00:19:00,320 You're welcome. 312 00:19:00,320 --> 00:19:02,520 Questions for anyone else? 313 00:19:02,520 --> 00:19:06,920 All right, go on to new business. 314 00:19:06,920 --> 00:19:12,800 So there's really no change to the new business items that we have, you know we have a number 315 00:19:12,800 --> 00:19:17,600 of follow-ups that we're planning to do, the last request that we had was this emergency 316 00:19:17,600 --> 00:19:22,440 preparedness for the DEC, we are working on a memo to you and anticipate having that for 317 00:19:22,440 --> 00:19:29,400 you for the next meeting along with this legislative update as well, so if anyone has any questions 318 00:19:29,400 --> 00:19:33,160 on those, I'd be happy to respond, but we are working on those. 319 00:19:33,160 --> 00:19:34,160 Mr. Beck again. 320 00:19:34,160 --> 00:19:39,200 I'm pretty talkative today, are we dealing with the list because I don't have it in front 321 00:19:39,200 --> 00:19:42,400 of me, are we dealing with the list of issues that were raised in the past and where they 322 00:19:42,400 --> 00:19:43,400 stand? 323 00:19:43,400 --> 00:19:45,560 I can certainly read them out to you. 324 00:19:45,560 --> 00:19:50,960 No, no, no, the one I was interested in, I think a former PUB member had soft presented 325 00:19:50,960 --> 00:19:58,160 about how much solar energy was put back in, he and I were on what was called the Denton 326 00:19:58,160 --> 00:20:03,200 drilling awareness group which is now defunct, so that is an item that interests me too, 327 00:20:03,200 --> 00:20:07,820 so has there been any movement on it at all or is it just? 328 00:20:07,820 --> 00:20:13,320 I can tell you that we are working on that, as you may be aware there's been a number 329 00:20:13,320 --> 00:20:18,780 of questions that have come up regarding street lights and lighting and dark skies and a number 330 00:20:18,780 --> 00:20:25,240 of other issues surrounding that, including questions regarding PPA that we recently did 331 00:20:25,240 --> 00:20:31,400 with embassy suites and so the direction that we got is to work on that and we're planning 332 00:20:31,400 --> 00:20:35,880 to have a conversation with the sustainability committee regarding all these matters, we're 333 00:20:35,880 --> 00:20:40,720 going to just roll all this into that discussion and we'll come back to the PUB with whatever 334 00:20:40,720 --> 00:20:45,440 recommendation that committee makes on that presentation and ultimately we'll go to council 335 00:20:45,440 --> 00:20:51,040 to seek any direction, if there is any direction there's likely going to be a pretty broad 336 00:20:51,040 --> 00:20:58,680 discussion about our total solar program and lighting in the city and those related matters, 337 00:20:58,680 --> 00:21:02,880 so at this point I don't have a date certain of when we're going to do that, I can just 338 00:21:02,880 --> 00:21:08,640 tell you that we are working on that and hope to have that before too long. 339 00:21:08,640 --> 00:21:11,240 Good, I appreciate your attention to it, thank you. 340 00:21:11,240 --> 00:21:12,240 Yes sir. 341 00:21:12,240 --> 00:21:16,120 Any other board members? 342 00:21:16,120 --> 00:21:20,400 Alright then on to concluding items, does a board member wish to have anything added 343 00:21:20,400 --> 00:21:26,080 to a future agenda item or have congratulations or anything to add? 344 00:21:26,080 --> 00:21:33,240 Alright, hearing none it is 922, do we have a motion to adjourn, Billy's not here, somebody 345 00:21:33,240 --> 00:21:34,240 has to do it. 346 00:21:34,240 --> 00:21:35,240 So moved. 347 00:21:35,240 --> 00:21:36,240 I'll move. 348 00:21:36,240 --> 00:21:37,240 Alright, we're adjourned. 349 00:21:37,240 --> 00:21:38,240 Bye everyone. 350 00:21:38,240 --> 00:21:42,240 [End of transcript]