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>> Okay. Welcome, everybody. We're going to call the May 8

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th, 2017 Public Utilities Board meeting to order. It's 9 o'

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clock. We're going to start the morning and work session.

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So right off the bat, we've got work session agenda A. I

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guess Chuck Springer is going to lead us on this.

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>> Yeah, Chuck's our finance director, and he's going to

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make this presentation for item A and B.

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>> Okay. Morning.

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>> Morning.

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>> I'm sure you spent the weekend reading over the exciting

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budget document we put in the packet, but I will go over it

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a little bit more.

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Of course, I left it on the last slide, so we'll start off

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at the beginning.

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>> I'm glad you made that picture. I thought that was a gu

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illotine.

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>> That is the bell that they're putting up by the fire

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station. They removed the old bell from the City Hall West

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and putting it up, and part of the steel is from the Twin T

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owers.

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So it's being constructed and put up through the Public Art

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Committee.

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We're going to start off kind of going over the goals and

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accomplishments for the wastewater utility today.

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They've completed the design of the Hickory Creek and the

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West Peak Flow detention facilities. Those are going out

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for bids soon.

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Awarded the Pecan Creek Interceptor Phase 4 project for

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construction.

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They met the TCEQ phosphorus limits. You remember a couple

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years ago that was a major budget issue.

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They've been meeting those due to the plan improvements and

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the additional chemicals they've added.

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They continue with their in-house construction and prevent

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ive maintenance program, and those costs are lower than

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external contracted costs.

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They've reduced their sanitary sewer overflow volumes last

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year during a wet year, and the compost operation received

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the Ron Sigler Award from the Water Environmental

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Association of Texas.

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In terms of upcoming goals for the upcoming year, to begin

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the construction of those two projects, the Hickory Creek

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and the West Peak Flow detention facilities, to continue to

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meet the EPA administrative orders.

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Here's just some of the items that they're doing in order

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to continue meeting that administrative order.

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Again, the in-house construction and preventive maintenance

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costs continue to be lower, and they want to complete an

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update of the wastewater master plan during the upcoming

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year.

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In terms of performance measures and across really the city

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organization, we've been looking at updating these.

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So we've got the current performance measures of O&M cost

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per account and O&M cost per million gallons treated, but

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they're looking at additional performance measures to add

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in.

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The first one, kind of the comparing the compost sales

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revenues plus the cost avoidance, be able to use that sl

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udge instead of having to dispose of it, compared to the

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cost of that operation.

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A goal for sanitary sewer overflows less than three per

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hundred miles of sewer lines.

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Again, to continue to maintain their cost comparisons

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between their in-house services for items such as sewer

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line cleaning, their closed circuit television monitoring

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of the lines and construction,

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just to continue to compare those against doing that

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externally.

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And then the sewer main chokes less than one per 1,000

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customers.

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And you can see the last three years where they've been in

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terms of that goal.

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Another emphasis this year is on cost containment

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strategies.

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You'll see some of these numbers reflected when I get to

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the detail in the budget.

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But in terms of what they are, they've eliminated some FTEs

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.

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The departmental reorganization in terms of administration.

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The savings of about 40,000 in terms of how administration

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been reorganized.

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In terms of the elimination of the FTEs, it was really one

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supervisor and one administrative intern that was

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eliminated.

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They had a supervisor that's now over both construction

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maintenance, one over that in the flushing crew.

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In terms of from the O&M budget, really did an exercise

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where they went through line item by line item within the

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divisions to look at historically what have we been

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spending in these line items versus what we have budgeted.

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So you see a reduction from the budget in the current year

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to the proposed budget of about 255,000.

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And those are the major areas that those reductions came

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through.

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But there are also other line items.

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We made some changes in terms of their timing of their debt

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service sale to balance against when they're spending the

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funds.

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Trying to just incur the debt closer to when the projects

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are starting.

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This year we're not selling for the waste water.

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We're carrying that sale of 6 million over to next year

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because we have the cash balances within that fund.

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The CEO fund to cover the projects for this year.

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So by just kind of matching that a little bit better, we're

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able to lower the debt service going forward.

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Another item, and I'll show this a little closer in future

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slides, but we've kind of leveled the revenue funded

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capital out.

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Historically, as they've budgeted the projects, then they

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've budgeted the revenue funded capital.

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But what we've tried to look at is leveling that out over

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the five year period versus the peaks and valleys.

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We do have cash available in that revenue capital funded or

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that revenue capital fund.

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Currently there's about 13 million that's budgeted but unex

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pended and not encumbered.

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So we feel like we have a large enough cash balance in

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there to level that out over the five years versus the

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peaks and valleys.

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And I'll kind of show that when I show the five year

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summary.

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Their maintenance and operation program resulted in what

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the PUB is very familiar with in rescinding the EPA consent

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decree.

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And estimated savings is about 100 million in terms of a

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reduced capital program.

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One of the reasons this is here is I think we need to

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highlight it for the city council.

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They will also get this presentation and a lot of them were

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not here when we were going through that process.

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So I think that's something important to highlight.

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So the total reductions from all these changes would equate

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to about a 2.4% rate increase.

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So we're proposing no rate increase for this year, so we've

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been able to reduce that.

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In terms of process improvements within the fund, they

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continue to refine their conditions assessments and life

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cycle assumptions for their waste water assets.

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And they performed a lean improvement program this year

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where they approved the information amongst departments for

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construction plan information.

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There's different departments within the city that handle

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the construction plans.

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And they really looked at a process so they could get the

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information they needed for their permanent files on a

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timely basis and also make sure it all came through

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correctly.

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In terms of future process improvements that the fund is

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looking at,

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looking at a criticality ranking for the plant and lift

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station equipment, equipment reliability analysis,

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just trying to determine what's most important, what do we

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need to keep track of more, what might need to be replaced

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more often because of that ranking.

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They're looking to create workflow charts of all the

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critical plant activities, improve the work order data with

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City Works,

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and just to continually improve the asset management

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program.

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In terms of future risks and how to mitigate those risks,

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one of the risks really across the city and across the

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Metroplex is just increased contractor costs for CIP

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projects.

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A lot of this is driven by the economy and the Metroplex.

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If you drive around, I was driving out through Dallas one

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day trying to count all the cranes along the way and I lost

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count at some point.

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It's just amazing how much activity is going on.

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But that kind of demand drives up cost.

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There's discussions, nothing's been set,

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but there's some discussion starting about setting

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discharge limits for sulfate and chlorides that come out of

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the wastewater treatment plant.

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If this were to occur, it would be some additional cost in

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order to, one, monitor to that and two, to control that.

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And they're currently testing their discharge to see where

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they're at.

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O&M cost, again, trying to mitigate those by refining their

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forecast and their asset management program

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and additional regulatory requirements that could come

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forward that we're not even aware of.

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In terms of assumptions for the budget, all the rates are

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based on cost of service.

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The goal is at least a minimum debt service coverage ratio

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of 1.25, but striving for much better than that.

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The annual revenue funded capital is based on the asset

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management program.

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Collection and those goals are the collection system

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replacement is 100% revenue funded and treatment plant

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infrastructure is 25% revenue funded and 75% debt.

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So with the five year leveling out, they are still meeting

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those revenue funding goals.

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Reserves the goal is 100 to 140 days and again, use long

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term planning to try to minimize customer rate impacts.

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This is a summary of the budget in terms of revenues for

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the wastewater utility.

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I just want to highlight a couple things on here.

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And this just really takes into account for 17, 18, just

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regular growth.

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There's no rate increases proposed in here, but regular

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growth.

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But one of the items you can see that use of reserves in 16

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, 17 that was budgeted at 4 million, 3.

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If you remember, we did a refunding of the revenue debt,

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outstanding revenue debt.

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And across the three utilities, we're able to free up funds

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from reserve funds that were required and some other cash

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funds that were required by those revenue bonds.

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And so we planned a use of reserves about 4.4 million came

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into the wastewater utility.

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We plan to transfer all that over to revenue funded capital

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.

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You can see they're estimating a little bit less this year

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in terms of a transfer.

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But when you look at the projection for 17, 18, the draw

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down of fund balance is really the remainder of that

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transfer.

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And I'll show that on the next slide.

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And here we have the proposed expenditures.

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And you can see in terms of changes, there's increases in

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personnel services.

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A slight increase in materials and supplies from the

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estimate, but below the budget.

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A portion of that is due to they're really estimating what

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kind of chemicals they would need for the phosphorus limits

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.

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They've been able to get a better handle on what's going to

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be necessary with that.

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And you can see the major difference is that transfer for

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capital projects because we had the one time larger

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transfer.

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And you see the reduction of two personnel positions or

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excuse me, one and a half personnel positions.

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So this is kind of the baseline for all of the funds in the

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city this year.

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The baseline, which is kind of no rate increases over the

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five year period.

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And I pointed out this drawdown here, about 800,000 in

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terms of a drawdown.

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Again, we had that planned use of reserves about 4.3

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million.

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They were only projecting use about 3.3.

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So this drawdown is really related to taking those funds

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over to the revenue funded capital.

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And you can see the proposed rate increases last year, we

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're estimating about 2%.

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You can see we draw down what's highlighted in yellow is

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where the number of working days in terms of working

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capital goes below the target of 100 to 140.

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So what we've proposed in the proposed budget, there were

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two in your packet, is a 2% rate increase in the future

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years.

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Option one is what I just showed you, 2018 to 2022.

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It would withdraw about 5.3 million from reserves and they

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fall below the target.

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Option two is 2% increases in the last three years would

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reduce that drawdown to 1.1.

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Now, let me emphasize really what we're adopting is the

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00:16:33,759 --> 00:16:36,000
budget for '17-'18.

263
00:16:36,000 --> 00:16:38,860
So we're just looking at the one year, but we try to

264
00:16:38,860 --> 00:16:42,519
project out on what we're going to be doing over the five

265
00:16:42,519 --> 00:16:46,000
year period and give a realistic look at that.

266
00:16:46,000 --> 00:16:51,299
Also included within the adopted budget document is a five

267
00:16:51,299 --> 00:16:53,000
year forecast.

268
00:16:53,000 --> 00:16:59,450
So we want to put a five year forecast in the budget that's

269
00:16:59,450 --> 00:17:05,000
realistic in terms of what we really expect.

270
00:17:05,000 --> 00:17:08,000
And here is the proposed five year forecast.

271
00:17:08,000 --> 00:17:13,450
You can see the really only difference is these 2% rate

272
00:17:13,450 --> 00:17:17,000
increases in terms of expenditures.

273
00:17:17,000 --> 00:17:20,470
About the only area that that impacts is the ROI and

274
00:17:20,470 --> 00:17:24,210
franchise fee is a little bit higher because you have a

275
00:17:24,210 --> 00:17:26,000
higher amount of revenues.

276
00:17:26,000 --> 00:17:32,529
And you can see with this change that the number of working

277
00:17:32,529 --> 00:17:40,000
days stays within the 100 to 140 day target here.

278
00:17:40,000 --> 00:17:44,000
I did want to break out drainage out of this.

279
00:17:44,000 --> 00:17:48,240
The drainage fee and the drainage function is within the

280
00:17:48,240 --> 00:17:50,000
wastewater system.

281
00:17:50,000 --> 00:17:53,000
It's kind of a net.

282
00:17:53,000 --> 00:17:56,579
The revenues and expenditures are equal, but just to be

283
00:17:56,579 --> 00:17:59,000
able to break that out a little bit.

284
00:17:59,000 --> 00:18:03,579
So here's the five year projection for the drainage portion

285
00:18:03,579 --> 00:18:08,000
of revenue and expenditures within the wastewater fund.

286
00:18:08,000 --> 00:18:11,829
And the only thing to point out here, there's no rate

287
00:18:11,829 --> 00:18:16,000
increases assumed in this, just growth in terms of revenue.

288
00:18:16,000 --> 00:18:20,440
But if you look down at the debt service line, you can see

289
00:18:20,440 --> 00:18:24,000
that that starts to decline significantly.

290
00:18:24,000 --> 00:18:28,099
And what that allows for if you go to the revenue funded

291
00:18:28,099 --> 00:18:32,220
capital, you can see the debt service begins to decline in

292
00:18:32,220 --> 00:18:33,000
'19.

293
00:18:33,000 --> 00:18:35,000
It goes down significantly.

294
00:18:35,000 --> 00:18:42,720
What that allows for is revenue funded capital so we can do

295
00:18:42,720 --> 00:18:50,940
capital projects related to drainage increases annually on

296
00:18:50,940 --> 00:18:53,000
that basis.

297
00:18:53,000 --> 00:18:59,440
And here's the five year capital plan in terms of the

298
00:18:59,440 --> 00:19:02,000
wastewater fund.

299
00:19:02,000 --> 00:19:06,309
I've got a table or a graph that kind of shows this in

300
00:19:06,309 --> 00:19:09,000
terms of across the community.

301
00:19:09,000 --> 00:19:13,160
But you can see the breakdown in terms of collection system

302
00:19:13,160 --> 00:19:17,000
upgrade, field service replacement are the largest.

303
00:19:17,000 --> 00:19:20,000
And then we've broken it down here in the bottom.

304
00:19:20,000 --> 00:19:25,000
How much is revenue funded capital versus CEOs?

305
00:19:25,000 --> 00:19:27,000
This is footnoted.

306
00:19:27,000 --> 00:19:30,500
We only plan to issue two million for these projects, but

307
00:19:30,500 --> 00:19:33,759
there's a six million dollar carryover from the current

308
00:19:33,759 --> 00:19:34,000
year.

309
00:19:34,000 --> 00:19:40,000
So we would issue eight million in 20 years, CEO next year,

310
00:19:40,000 --> 00:19:42,000
plus the 350,000.

311
00:19:42,000 --> 00:19:50,329
But in terms of the projects shown here, we only need two

312
00:19:50,329 --> 00:19:54,000
million to fund that.

313
00:19:54,000 --> 00:19:57,000
This gives a breakdown and it's color coded.

314
00:19:57,000 --> 00:20:01,589
I know it's a little bit hard to see, but in terms of the

315
00:20:01,589 --> 00:20:05,000
projects by different fiscal year.

316
00:20:05,000 --> 00:20:08,720
If you have any questions on this, I'll gladly allow one of

317
00:20:08,720 --> 00:20:12,230
the experts in the wastewater fund to come up and answer

318
00:20:12,230 --> 00:20:15,000
any capital questions you may have.

319
00:20:15,000 --> 00:20:17,730
I'm used to doing these budget presentations with the city

320
00:20:17,730 --> 00:20:20,440
council when I'm not stopped with questions on every other

321
00:20:20,440 --> 00:20:21,000
slide.

322
00:20:21,000 --> 00:20:24,880
It makes me a little bit nervous. So let me know if you

323
00:20:24,880 --> 00:20:26,000
have some questions.

324
00:20:26,000 --> 00:20:31,000
I'm not used to going through on this quickly.

325
00:20:31,000 --> 00:20:35,000
Chuck on the just to make you feel more comfortable.

326
00:20:35,000 --> 00:20:37,000
Appreciate that.

327
00:20:37,000 --> 00:20:43,000
Two questions. One is on the on the reserve days.

328
00:20:43,000 --> 00:20:46,779
We did was it last year we did a study or two years ago

329
00:20:46,779 --> 00:20:50,829
that kind of did a comparison of where we are, where we

330
00:20:50,829 --> 00:20:54,000
should be is 100 to 140 days.

331
00:20:54,000 --> 00:21:00,000
Was that in line with the study or what it said or was that

332
00:21:00,000 --> 00:21:03,000
and I think Dr. Banks had done a study.

333
00:21:03,000 --> 00:21:07,150
I know we had updated some of them two years ago where we

334
00:21:07,150 --> 00:21:10,680
increase the amount, but I don't believe we made any

335
00:21:10,680 --> 00:21:12,000
changes last year.

336
00:21:12,000 --> 00:21:16,000
But I'll turn it over to Dr. Okay.

337
00:21:16,000 --> 00:21:20,180
Good morning. Morning. Yes, we've we've been looking at the

338
00:21:20,180 --> 00:21:23,579
reserve level on both the water wastewater side as well as

339
00:21:23,579 --> 00:21:26,000
solid waste and DME for that matter.

340
00:21:26,000 --> 00:21:32,339
And we went through a large number of survey data to try to

341
00:21:32,339 --> 00:21:38,000
figure out exactly where we were needing to be.

342
00:21:38,000 --> 00:21:40,799
The way that's calculated is different, different among

343
00:21:40,799 --> 00:21:42,000
different agencies.

344
00:21:42,000 --> 00:21:45,460
And so we struggle quite a bit on on how that day's

345
00:21:45,460 --> 00:21:50,079
calculation was actually done, whether it included debt

346
00:21:50,079 --> 00:21:54,000
service, if it was just strictly operating, et cetera.

347
00:21:54,000 --> 00:21:58,000
We have systematically adjusted those reserves upwards.

348
00:21:58,000 --> 00:22:03,410
We are now at 100 to 140 days and that puts us pretty well

349
00:22:03,410 --> 00:22:08,000
in the midpoint of what the survey data was showing us.

350
00:22:08,000 --> 00:22:13,279
And so it is a I think a reasonable target to be at

351
00:22:13,279 --> 00:22:18,880
considering what we saw in the in the data and then also

352
00:22:18,880 --> 00:22:23,000
what we have experienced in terms of year over year losses.

353
00:22:23,000 --> 00:22:27,930
So basically the programming for that was to allow us at

354
00:22:27,930 --> 00:22:32,000
the top end to be able to tolerate two to three

355
00:22:32,000 --> 00:22:35,000
historically bad years back to back.

356
00:22:35,000 --> 00:22:40,029
And so that allows us to we think to survive if we end up

357
00:22:40,029 --> 00:22:44,930
having a couple of bad years and still be able to keep

358
00:22:44,930 --> 00:22:48,000
operations going just fine.

359
00:22:48,000 --> 00:22:53,569
So does that answer your question? Where were we before on

360
00:22:53,569 --> 00:22:54,000
the reserve?

361
00:22:54,000 --> 00:22:58,680
We were we prior to this last adjustment, we were 90 to 120

362
00:22:58,680 --> 00:22:59,000
.

363
00:22:59,000 --> 00:23:04,140
Okay. And then we went to the 100 to 140. So we we increase

364
00:23:04,140 --> 00:23:07,000
the lower level and broaden the range.

365
00:23:07,000 --> 00:23:13,690
Okay. All right. Yeah, I think I think it's good that we're

366
00:23:13,690 --> 00:23:19,000
recognizing that the water wastewater is one of the more

367
00:23:19,000 --> 00:23:25,410
vulnerable to weather fluctuations, more volatile from a

368
00:23:25,410 --> 00:23:27,000
revenue side.

369
00:23:27,000 --> 00:23:32,000
And so, yeah, that's good.

370
00:23:32,000 --> 00:23:38,059
Any other questions? I do have a question on that slot the

371
00:23:38,059 --> 00:23:40,920
five years slide that there's $1.2 million loss. And is

372
00:23:40,920 --> 00:23:45,000
that again just carry over?

373
00:23:45,000 --> 00:23:49,029
Go back another one. This right there and I know that our

374
00:23:49,029 --> 00:23:55,549
focus is really 2018. But in 2019, is that again from the

375
00:23:55,549 --> 00:24:00,000
planned use of reserves or is that?

376
00:24:00,000 --> 00:24:04,559
That's that's really just what it shows with a zero rate

377
00:24:04,559 --> 00:24:08,000
increase in that year and one of the items.

378
00:24:08,000 --> 00:24:12,730
Also, to consider when we're doing the plan use of reserves

379
00:24:12,730 --> 00:24:17,740
, we're up at 204 here after this year and coming down but

380
00:24:17,740 --> 00:24:22,000
it kind of brings us into the middle of that range.

381
00:24:22,000 --> 00:24:24,559
I just want to make sure I understood that right. Yeah, and

382
00:24:24,559 --> 00:24:28,359
it's really, it's really the following year that we would

383
00:24:28,359 --> 00:24:29,000
propose the two percent.

384
00:24:29,000 --> 00:24:33,609
So we don't continue that decline. And again, you know, we

385
00:24:33,609 --> 00:24:37,420
'll refine these numbers as we go into that year. So it's

386
00:24:37,420 --> 00:24:41,059
somewhat of an estimate and close estimate, but somewhat of

387
00:24:41,059 --> 00:24:42,000
an estimate.

388
00:24:42,000 --> 00:24:44,000
Thank you.

389
00:24:44,000 --> 00:24:46,839
I remember I said I had two questions. I just remember that

390
00:24:46,839 --> 00:24:48,000
. Okay.

391
00:24:48,000 --> 00:24:53,029
Any any adjustments made to the five year capital

392
00:24:53,029 --> 00:24:58,900
improvement program from what it was what it has been to be

393
00:24:58,900 --> 00:25:03,160
thing delayed or or taken out is it looks the map looks

394
00:25:03,160 --> 00:25:08,359
pretty much the same all the projects but just just just

395
00:25:08,359 --> 00:25:17,000
comment on

396
00:25:17,000 --> 00:25:20,000
right about the map looks about the same.

397
00:25:20,000 --> 00:25:24,039
The delays are usually it is tied to getting easements so

398
00:25:24,039 --> 00:25:28,359
engaging the property owners and buying the easements to do

399
00:25:28,359 --> 00:25:30,000
the installation.

400
00:25:30,000 --> 00:25:35,029
So we have made some adjustments on some projects because

401
00:25:35,029 --> 00:25:36,000
of that.

402
00:25:36,000 --> 00:25:39,049
But within the five year window. We still have pretty much

403
00:25:39,049 --> 00:25:40,000
the same projects.

404
00:25:40,000 --> 00:25:42,000
Okay.

405
00:25:42,000 --> 00:25:48,680
No delays or taking projects or delaying projects because

406
00:25:48,680 --> 00:25:51,000
of no rate increase.

407
00:25:51,000 --> 00:25:54,000
Not on the wastewater site.

408
00:25:54,000 --> 00:25:55,000
I haven't really.

409
00:25:55,000 --> 00:25:58,950
What has helped is actually balancing out the just in time

410
00:25:58,950 --> 00:26:03,190
funding for the projects and also the revenue funding. So

411
00:26:03,190 --> 00:26:05,000
that balance it out.

412
00:26:05,000 --> 00:26:06,000
Okay.

413
00:26:06,000 --> 00:26:07,000
Good.

414
00:26:07,000 --> 00:26:15,000
Thank you.

415
00:26:15,000 --> 00:26:19,119
We always show these kind of comparisons where our rates

416
00:26:19,119 --> 00:26:22,619
are versus other communities in the area this is

417
00:26:22,619 --> 00:26:24,000
residential.

418
00:26:24,000 --> 00:26:29,460
And this will come back to the P.U.B. after others make

419
00:26:29,460 --> 00:26:35,190
their rate adjustments. So after everyone's budget process

420
00:26:35,190 --> 00:26:38,410
will come back. But you can see in terms of residential

421
00:26:38,410 --> 00:26:39,000
where we're at.

422
00:26:39,000 --> 00:26:45,000
And this one shows commercial at fifty thousand gallons.

423
00:26:45,000 --> 00:26:49,000
And then commercial at two hundred thousand gallons.

424
00:26:49,000 --> 00:26:55,069
So a little bit higher on the scale on commercial than we

425
00:26:55,069 --> 00:26:57,000
are residential.

426
00:26:57,000 --> 00:27:02,359
And with that I'll go to my last and first slide. Questions

427
00:27:02,359 --> 00:27:04,000
and comments.

428
00:27:04,000 --> 00:27:08,410
And in terms of timing we've presented this information we

429
00:27:08,410 --> 00:27:12,730
've also got in the backup to detailed budget backups kind

430
00:27:12,730 --> 00:27:17,140
of the baseline budget and the proposed budget which again

431
00:27:17,140 --> 00:27:20,000
is the same for the first couple of fiscal years.

432
00:27:20,000 --> 00:27:22,000
We've got all this information.

433
00:27:22,000 --> 00:27:26,000
We'll come back with put this on the agenda in June again

434
00:27:26,000 --> 00:27:30,160
for questions and look for a recommendation on the budget

435
00:27:30,160 --> 00:27:34,059
by the end of June to be able to take it to counsel during

436
00:27:34,059 --> 00:27:38,000
the July timeframe into July when we take a proposed budget

437
00:27:38,000 --> 00:27:38,000
.

438
00:27:38,000 --> 00:27:42,680
So there's additional time for the committee to discuss

439
00:27:42,680 --> 00:27:44,000
this budget.

440
00:27:44,000 --> 00:27:52,000
Future meetings.

441
00:27:52,000 --> 00:27:57,000
Everybody's reading the next presentation.

442
00:27:57,000 --> 00:28:23,269
Let me drop off a little paperwork and pick up a little bit

443
00:28:23,269 --> 00:28:25,000
.

444
00:28:25,000 --> 00:28:30,460
In terms of the solid waste fund and I'll go through it in

445
00:28:30,460 --> 00:28:34,000
the same manner as the other one.

446
00:28:34,000 --> 00:28:39,480
Same emphasis in terms of the accomplishments expanding the

447
00:28:39,480 --> 00:28:44,549
alternative fuel facility so that we can get C&G actually

448
00:28:44,549 --> 00:28:48,000
through our own facility versus bringing a contractor out.

449
00:28:48,000 --> 00:28:53,640
At least right now on a per gallon equivalent, C&G is about

450
00:28:53,640 --> 00:28:58,690
50 cents less than diesel in terms on a per gallon

451
00:28:58,690 --> 00:29:01,000
equivalent.

452
00:29:01,000 --> 00:29:05,680
To they began the landfill cell construction estimated

453
00:29:05,680 --> 00:29:10,240
completion of it kind of at the end of this calendar year

454
00:29:10,240 --> 00:29:15,000
of the latest cell and the cell life is about ten years.

455
00:29:15,000 --> 00:29:19,680
There's three grants that the fund received for their C&G,

456
00:29:19,680 --> 00:29:24,000
the home chemical center and for mining equipment.

457
00:29:24,000 --> 00:29:28,549
They're currently fully compliant on all the regulations

458
00:29:28,549 --> 00:29:32,700
from TCEQ and one of the goals and you'll see in terms of

459
00:29:32,700 --> 00:29:36,759
when we look at new performance measures is adding

460
00:29:36,759 --> 00:29:40,000
commercial to the recycling program.

461
00:29:40,000 --> 00:29:45,640
So they added 38 accounts, multi-family accounts this year

462
00:29:45,640 --> 00:29:50,769
and that brings up the participation rate for multi-family

463
00:29:50,769 --> 00:29:57,000
from about 28% of the multi-family customers to about 36%.

464
00:29:57,000 --> 00:30:02,299
In terms of the goals, hope to increase the building

465
00:30:02,299 --> 00:30:07,000
materials recovery program by about 7%.

466
00:30:07,000 --> 00:30:11,119
Mining operations in this first 17-18 will be really the

467
00:30:11,119 --> 00:30:14,000
first year where they're fully geared up.

468
00:30:14,000 --> 00:30:18,940
They hope to process about 216,000 cubic yards to give you

469
00:30:18,940 --> 00:30:21,000
a little bit of reference.

470
00:30:21,000 --> 00:30:24,809
They estimate that the total amount of mining is about

471
00:30:24,809 --> 00:30:27,000
three million cubic yards.

472
00:30:27,000 --> 00:30:29,000
Hope to do it over a ten year period.

473
00:30:29,000 --> 00:30:33,339
That's the first year, but they hope each year to be able

474
00:30:33,339 --> 00:30:37,799
to mine more cubic yards as they get more efficient and get

475
00:30:37,799 --> 00:30:41,000
more knowledgeable on the process.

476
00:30:41,000 --> 00:30:44,660
I know that it's come to this board some of the fleet

477
00:30:44,660 --> 00:30:48,680
software that the solid waste has looked at and they hope

478
00:30:48,680 --> 00:30:52,009
to improve efficiencies in their information management

479
00:30:52,009 --> 00:30:55,000
from that new fleet software that will be

480
00:30:55,000 --> 00:31:00,509
has some vehicle location and mapping capabilities, reduce

481
00:31:00,509 --> 00:31:06,039
preventable accidents by 10% and kind of continue to refine

482
00:31:06,039 --> 00:31:10,349
the business plan for the regional household chemical

483
00:31:10,349 --> 00:31:11,000
center.

484
00:31:11,000 --> 00:31:16,220
In terms of performance measures, the current ones are the

485
00:31:16,220 --> 00:31:21,009
residential reef refuge and recycling tonnage and the

486
00:31:21,009 --> 00:31:26,319
commercial refuge and recycling tonnage, those percentages

487
00:31:26,319 --> 00:31:29,000
and the pounds disposed per capita.

488
00:31:29,000 --> 00:31:32,650
Some of the new performance measures that they would like

489
00:31:32,650 --> 00:31:36,630
to add, increasing their commercial recycling accounts and

490
00:31:36,630 --> 00:31:40,059
tracking their cubic yards processed in their mining

491
00:31:40,059 --> 00:31:44,400
operations and then just achieving their optimal waste comp

492
00:31:44,400 --> 00:31:49,000
action by 1100 to 1200 pounds per cubic yard.

493
00:31:49,000 --> 00:31:54,519
Really that allows the breakdown of materials as well as

494
00:31:54,519 --> 00:31:59,680
kind of maximizing that methane gas recovery that's

495
00:31:59,680 --> 00:32:04,490
captured within the landfill and used to produce

496
00:32:04,490 --> 00:32:07,000
electricity for DME.

497
00:32:07,000 --> 00:32:12,119
In terms of cost containment strategies, the solid waste

498
00:32:12,119 --> 00:32:17,019
fund did delay some issuance and reduce some issuance on

499
00:32:17,019 --> 00:32:25,000
their capital program by 9.4 million for 16-17 that reduced

500
00:32:25,000 --> 00:32:29,559
their debt service by about 1.1 million in the upcoming

501
00:32:29,559 --> 00:32:30,000
year.

502
00:32:30,000 --> 00:32:34,569
They transitioned seven FTEs that were construction crew

503
00:32:34,569 --> 00:32:38,880
out at the landfill over to the mining operation as a lot

504
00:32:38,880 --> 00:32:43,000
of their construction activities geared down.

505
00:32:43,000 --> 00:32:47,009
They have future construction activities to look at

506
00:32:47,009 --> 00:32:49,000
contracting that out.

507
00:32:49,000 --> 00:32:53,019
They also went through the same type of exercise in terms

508
00:32:53,019 --> 00:32:56,779
of line item by line item looking at their historical

509
00:32:56,779 --> 00:33:01,069
expenses and reducing their O&M expenses from the budget in

510
00:33:01,069 --> 00:33:06,000
16-17 to 17-18 by about 620,000.

511
00:33:06,000 --> 00:33:10,000
You can see some of the main categories that are in there.

512
00:33:10,000 --> 00:33:15,650
They've eliminated two FTEs that were vacant in terms of

513
00:33:15,650 --> 00:33:19,000
planning for 17-18.

514
00:33:19,000 --> 00:33:23,589
They're in the public outreach division, a public outreach

515
00:33:23,589 --> 00:33:28,000
manager, and a business account coordinator were the two

516
00:33:28,000 --> 00:33:30,000
that were eliminated.

517
00:33:30,000 --> 00:33:33,440
They've also reduced communication services and equipment

518
00:33:33,440 --> 00:33:35,000
going with a new vendor.

519
00:33:35,000 --> 00:33:39,279
That's their push to talk system. Estimate that'll save

520
00:33:39,279 --> 00:33:45,000
them about 175,000 over the five-year life of that contract

521
00:33:45,000 --> 00:33:45,000
.

522
00:33:45,000 --> 00:33:48,000
Question?

523
00:33:48,000 --> 00:33:53,799
On the public outreach, what could you explain a little bit

524
00:33:53,799 --> 00:33:57,000
about what's involved there?

525
00:33:57,000 --> 00:34:03,230
I'm going to turn that over to Vance to answer that

526
00:34:03,230 --> 00:34:05,000
question.

527
00:34:05,000 --> 00:34:06,000
Good morning.

528
00:34:06,000 --> 00:34:11,369
Yes. Public outreach is part of our public education and

529
00:34:11,369 --> 00:34:16,000
the outreach we do in the community.

530
00:34:16,000 --> 00:34:20,000
We've looked at how we can better coordinate those

531
00:34:20,000 --> 00:34:24,570
activities through the organization and we think that by

532
00:34:24,570 --> 00:34:27,860
doing that and a better job, we can actually reduce that

533
00:34:27,860 --> 00:34:29,000
one position.

534
00:34:29,000 --> 00:34:33,000
And the second position has not been filled in a few years.

535
00:34:33,000 --> 00:34:38,079
We were looking at expanding our commercial and multifamily

536
00:34:38,079 --> 00:34:42,920
recycling and utilizing that one position to market and

537
00:34:42,920 --> 00:34:44,000
educate.

538
00:34:44,000 --> 00:34:47,380
We've been able to do that in-house, so we just never have

539
00:34:47,380 --> 00:34:49,000
filled that position.

540
00:34:49,000 --> 00:34:51,000
So those are the two.

541
00:34:51,000 --> 00:34:54,539
Do we have any programs that go into the schools to start

542
00:34:54,539 --> 00:34:56,000
with the children?

543
00:34:56,000 --> 00:34:59,000
Yes. Yes. That is not being cut.

544
00:34:59,000 --> 00:35:02,519
We think that's an important long-term program called the

545
00:35:02,519 --> 00:35:06,570
Denton Sustainable Schools Program, and that will continue

546
00:35:06,570 --> 00:35:07,000
on.

547
00:35:07,000 --> 00:35:12,590
We've been doing that for probably 14 years, and that has

548
00:35:12,590 --> 00:35:15,000
been very successful.

549
00:35:15,000 --> 00:35:19,809
So we're seeing those first students moving out, graduating

550
00:35:19,809 --> 00:35:24,000
from high school, and coming into the community.

551
00:35:24,000 --> 00:35:27,260
So it's one of those long-term programs that is really

552
00:35:27,260 --> 00:35:28,000
needed.

553
00:35:28,000 --> 00:35:31,829
And to maintain our high amount of diversion and recycling,

554
00:35:31,829 --> 00:35:35,489
we have to have an ongoing public education program, both

555
00:35:35,489 --> 00:35:38,000
in the schools and in the community.

556
00:35:38,000 --> 00:35:40,000
I think that's very important. Thank you very much.

557
00:35:40,000 --> 00:35:42,000
Thank you.

558
00:35:50,000 --> 00:35:54,389
In terms of process improvements out at the landfill and

559
00:35:54,389 --> 00:35:59,000
their operations, they're hoping to reduce turnaround time,

560
00:35:59,000 --> 00:36:03,829
really getting a second inbound and outbound scale so that

561
00:36:03,829 --> 00:36:09,280
folks can come in and out more quickly and help reduce that

562
00:36:09,280 --> 00:36:10,000
turnaround time,

563
00:36:10,000 --> 00:36:14,199
make it more efficient and more pleasing for those who

564
00:36:14,199 --> 00:36:17,000
choose to come and use our services.

565
00:36:17,000 --> 00:36:20,719
And just improving their forecasting, budgeting, and CIP

566
00:36:20,719 --> 00:36:23,000
process materials forecasting.

567
00:36:23,000 --> 00:36:26,519
Some of the future improvements, looking at improving the

568
00:36:26,519 --> 00:36:31,110
accounting and information management processes with a

569
00:36:31,110 --> 00:36:32,000
software upgrade

570
00:36:32,000 --> 00:36:34,889
and the new fleet management software looking to

571
00:36:34,889 --> 00:36:38,460
incorporate that and really find some efficiencies through

572
00:36:38,460 --> 00:36:40,000
the use of that new software,

573
00:36:40,000 --> 00:36:46,550
and then collaborate with fleet services to reduce vehicle

574
00:36:46,550 --> 00:36:49,000
maintenance cost.

575
00:36:49,000 --> 00:36:53,309
In terms of future risk and what's being done to mitigate

576
00:36:53,309 --> 00:36:58,460
those, the mining operations is really offsetting future

577
00:36:58,460 --> 00:37:02,000
expense to add landfill cell space,

578
00:37:02,000 --> 00:37:06,000
and it also materials recovery and the sales and revenue

579
00:37:06,000 --> 00:37:08,000
that's coming from that.

580
00:37:08,000 --> 00:37:12,610
The Mosley Road landfill wanted to stress that we've

581
00:37:12,610 --> 00:37:18,000
identified funding available for necessary improvements,

582
00:37:18,000 --> 00:37:23,000
but we may have to do to that landfill of 6.2 million,

583
00:37:23,000 --> 00:37:24,000
sorry, 6.4 million.

584
00:37:24,000 --> 00:37:30,449
3.2 is currently available, and there's another 3.2 in the

585
00:37:30,449 --> 00:37:32,000
upcoming CIP.

586
00:37:32,000 --> 00:37:36,389
We're currently evaluating what needs to be done out there,

587
00:37:36,389 --> 00:37:39,559
doing some testing, and we'll know more in the next couple

588
00:37:39,559 --> 00:37:40,000
of months,

589
00:37:40,000 --> 00:37:44,730
but we do have funds identified to be able to do remed

590
00:37:44,730 --> 00:37:47,000
iation as necessary.

591
00:37:47,000 --> 00:37:51,000
What's coming up is final approval of the municipal solid

592
00:37:51,000 --> 00:37:53,000
waste permit amendment.

593
00:37:53,000 --> 00:37:56,860
The public notice phase is coming forward and all the

594
00:37:56,860 --> 00:38:01,000
regulatory requirements as we go through that process.

595
00:38:01,000 --> 00:38:05,929
And hopefully avoid any hiccups during the legislature this

596
00:38:05,929 --> 00:38:09,000
year and continue to move forward.

597
00:38:09,000 --> 00:38:12,829
Also looking at wholesale customers, really external

598
00:38:12,829 --> 00:38:16,000
customers from the city that use our services,

599
00:38:16,000 --> 00:38:21,139
and analyzing any need for contractual agreements over the

600
00:38:21,139 --> 00:38:27,079
long term with those customers to maintain that customer

601
00:38:27,079 --> 00:38:28,000
base.

602
00:38:28,000 --> 00:38:31,829
In terms of the assumptions for their budget, revenue

603
00:38:31,829 --> 00:38:35,599
growth is really based on historical trends and customer

604
00:38:35,599 --> 00:38:36,000
data.

605
00:38:36,000 --> 00:38:39,099
I've got another slide where they changed their growth

606
00:38:39,099 --> 00:38:42,610
estimates for '17-'18 a little bit less than what they

607
00:38:42,610 --> 00:38:44,000
showed PUB a few months ago.

608
00:38:44,000 --> 00:38:48,039
The rates, again, based on cost of service, they also shoot

609
00:38:48,039 --> 00:38:52,599
for minimum debt coverage of 1.25, but would like to have

610
00:38:52,599 --> 00:38:54,000
higher than that.

611
00:38:54,000 --> 00:38:58,869
Their funding goals in terms of cash funding of capital for

612
00:38:58,869 --> 00:39:02,000
equipment is heavy duty vehicles.

613
00:39:02,000 --> 00:39:07,000
Their goal is to fund those 50% and light duty 100%.

614
00:39:07,000 --> 00:39:11,000
There is the revenue funded capital within the budget.

615
00:39:11,000 --> 00:39:14,000
I'll show you that line when we get there.

616
00:39:14,000 --> 00:39:16,889
And they're not proposing any rate increases for about a

617
00:39:16,889 --> 00:39:18,000
four year period.

618
00:39:18,000 --> 00:39:22,000
They're looking at a rate increase at year five.

619
00:39:22,000 --> 00:39:27,260
Kind of evaluating the potential increased expenses for new

620
00:39:27,260 --> 00:39:30,000
programs as we move forward.

621
00:39:30,000 --> 00:39:33,570
I stated they're going to continue to do an analysis of a

622
00:39:33,570 --> 00:39:37,900
regional household hazardous chemical center, the mining

623
00:39:37,900 --> 00:39:41,000
operation, and the CNG.

624
00:39:41,000 --> 00:39:46,159
Some of those costs are still in process and making sure of

625
00:39:46,159 --> 00:39:50,869
those once we have like a full year of experience with

626
00:39:50,869 --> 00:39:53,000
those facilities.

627
00:39:53,000 --> 00:39:56,000
I mentioned an updated growth forecast.

628
00:39:56,000 --> 00:39:59,880
You can see the original forecast for the upcoming fiscal

629
00:39:59,880 --> 00:40:03,000
year on the left in terms of residential customer growth,

630
00:40:03,000 --> 00:40:08,380
commercial growth, and retail and wholesale tonnage at the

631
00:40:08,380 --> 00:40:09,000
landfill.

632
00:40:09,000 --> 00:40:12,000
And you can see the revised numbers here.

633
00:40:12,000 --> 00:40:19,469
So this budget and the revenues is based on that updated

634
00:40:19,469 --> 00:40:21,000
column.

635
00:40:21,000 --> 00:40:25,239
In terms of revenues, we've broken these out a little bit

636
00:40:25,239 --> 00:40:28,000
differently than in prior years.

637
00:40:28,000 --> 00:40:32,000
In terms of the first one, asset sales and interest income,

638
00:40:32,000 --> 00:40:35,510
most of the asset sales are just sales of equipment when we

639
00:40:35,510 --> 00:40:38,000
replace the equipment and auction that off.

640
00:40:38,000 --> 00:40:42,590
We've broken it down between residential and commercial and

641
00:40:42,590 --> 00:40:44,000
landfill gate.

642
00:40:44,000 --> 00:40:47,889
You can see the importance of those external customers in

643
00:40:47,889 --> 00:40:50,000
terms of the landfill gate.

644
00:40:50,000 --> 00:40:54,000
Recyclable materials, miscellaneous.

645
00:40:54,000 --> 00:40:58,000
And I do want to point out the alternative fueling station.

646
00:40:58,000 --> 00:41:00,000
This is the CNG.

647
00:41:00,000 --> 00:41:05,619
For our purposes, how we handle this is it will show up, at

648
00:41:05,619 --> 00:41:10,190
least on a budgetary standpoint, as a revenue and an

649
00:41:10,190 --> 00:41:11,000
expense.

650
00:41:11,000 --> 00:41:15,550
When they go into fuel, they'll have to be using a card so

651
00:41:15,550 --> 00:41:20,000
it shows up as a revenue even with our own vehicles.

652
00:41:20,000 --> 00:41:22,000
And then it'll be an expense on the other side.

653
00:41:22,000 --> 00:41:26,000
So that's really why you see such a large increase in that.

654
00:41:26,000 --> 00:41:30,070
We'll also sell to the public, part of that grant is it has

655
00:41:30,070 --> 00:41:33,000
to be available to sell to the public.

656
00:41:33,000 --> 00:41:37,000
So via credit card, we'll be able to sell to the public.

657
00:41:37,000 --> 00:41:41,960
But the majority of that is really internal city operations

658
00:41:41,960 --> 00:41:44,000
from the solid waste.

659
00:41:44,000 --> 00:41:47,000
But that's a little bit different.

660
00:41:47,000 --> 00:41:51,000
And then you can see the use of reserves.

661
00:41:51,000 --> 00:41:55,000
And I'll show these in the summary slide.

662
00:41:55,000 --> 00:41:59,869
Last year, last fiscal year, DME purchased some land out at

663
00:41:59,869 --> 00:42:01,000
the landfill.

664
00:42:01,000 --> 00:42:05,829
And about half of that money, they wanted to use that for

665
00:42:05,829 --> 00:42:08,000
cash funded capital.

666
00:42:08,000 --> 00:42:13,000
About half of it was transferred in '15-'16.

667
00:42:13,000 --> 00:42:16,760
So they want to have budget authority to transfer the other

668
00:42:16,760 --> 00:42:20,000
half of that over to their cash funded capital.

669
00:42:20,000 --> 00:42:26,550
So that's really what they're using the reserves for in '17

670
00:42:26,550 --> 00:42:28,000
-'18.

671
00:42:28,000 --> 00:42:33,000
This is just a summary of their expenditures.

672
00:42:33,000 --> 00:42:35,000
And we've tried to break these down.

673
00:42:35,000 --> 00:42:40,619
These are kind of the standard categories to be broken down

674
00:42:40,619 --> 00:42:41,000
.

675
00:42:41,000 --> 00:42:45,750
In terms of personnel services, most of that increase is

676
00:42:45,750 --> 00:42:50,000
due to kind of the full year of the mining operation,

677
00:42:50,000 --> 00:42:54,000
because we did reduce two FTEs.

678
00:42:54,000 --> 00:42:57,000
But as we get into the full year of the mining operation,

679
00:42:57,000 --> 00:43:00,000
you can see that increase.

680
00:43:00,000 --> 00:43:03,420
You can see some of the other line items have stayed the

681
00:43:03,420 --> 00:43:04,000
same.

682
00:43:04,000 --> 00:43:08,000
The franchise fee is simply a percentage of revenues.

683
00:43:08,000 --> 00:43:11,000
Their operations go up.

684
00:43:11,000 --> 00:43:14,280
And you can see even with the delay in debt service, you

685
00:43:14,280 --> 00:43:17,679
can see their debt service expense goes from about $8

686
00:43:17,679 --> 00:43:23,000
million to about $9.6.

687
00:43:23,000 --> 00:43:26,019
And under the operations, I always look at what you

688
00:43:26,019 --> 00:43:29,000
actually spent versus what you're proposing.

689
00:43:29,000 --> 00:43:32,119
So in that operations, that's the increase from the mining

690
00:43:32,119 --> 00:43:33,000
operations?

691
00:43:33,000 --> 00:43:37,000
The majority of that is the mining operation.

692
00:43:37,000 --> 00:43:40,880
In terms of the equipment and the fuel used by the

693
00:43:40,880 --> 00:43:43,000
equipment, those type of things.

694
00:43:43,000 --> 00:43:47,269
About the same if you look at from '15-'16 to '16-'17 in

695
00:43:47,269 --> 00:43:49,000
terms of personnel services.

696
00:43:49,000 --> 00:43:50,000
>> Right.

697
00:43:50,000 --> 00:43:53,000
>> Was also almost all of the mining operation.

698
00:43:58,000 --> 00:44:05,539
In terms of their five year capital plan, it's broken down

699
00:44:05,539 --> 00:44:06,000
here.

700
00:44:06,000 --> 00:44:09,480
And we've broken it down at the bottom in terms of

701
00:44:09,480 --> 00:44:12,000
certificates of obligation.

702
00:44:12,000 --> 00:44:16,969
Five year, ten year, and 20, we match the life of the asset

703
00:44:16,969 --> 00:44:19,000
to the term of the debt.

704
00:44:19,000 --> 00:44:22,000
So that's broken down in that way.

705
00:44:22,000 --> 00:44:23,000
And I'll leave this up here.

706
00:44:23,000 --> 00:44:28,719
And if you have some questions in terms of their capital

707
00:44:28,719 --> 00:44:30,000
program.

708
00:44:30,000 --> 00:44:33,800
I did mention that Mosley Road facility where we were going

709
00:44:33,800 --> 00:44:36,000
to sell some additional debt.

710
00:44:36,000 --> 00:44:43,000
In terms of Mosley Road, would you like to cover that one?

711
00:44:43,000 --> 00:44:48,000
Kenny, it's really a landfill outside of the city limits

712
00:44:48,000 --> 00:44:50,000
that was run by the city.

713
00:44:50,000 --> 00:44:53,000
And I don't know during what years it was run by the city.

714
00:44:53,000 --> 00:44:55,000
>> I'm not sure if I know what year it is either.

715
00:44:55,000 --> 00:44:56,000
Vance, can you help me on that?

716
00:44:56,000 --> 00:44:58,000
>> It was in '84.

717
00:44:58,000 --> 00:45:03,000
>> Okay.

718
00:45:03,000 --> 00:45:06,710
>> So they stopped utilizing that landfill in the early

719
00:45:06,710 --> 00:45:08,000
1980s.

720
00:45:08,000 --> 00:45:11,000
And I'm not sure when they started using it.

721
00:45:11,000 --> 00:45:14,000
It may have been as early as about 1960.

722
00:45:14,000 --> 00:45:19,440
So prior to that, there was a landfill, so to speak, over

723
00:45:19,440 --> 00:45:25,000
where facility management's offices are right in that area.

724
00:45:25,000 --> 00:45:27,949
And they left out of there somewhere in the late '50s,

725
00:45:27,949 --> 00:45:29,000
early '60s.

726
00:45:29,000 --> 00:45:34,369
So we have those old areas where the city used to put their

727
00:45:34,369 --> 00:45:37,000
waste that we don't have closure,

728
00:45:37,000 --> 00:45:40,500
post closure funding for because that wasn't a requirement

729
00:45:40,500 --> 00:45:41,000
then.

730
00:45:41,000 --> 00:45:44,150
But we still, as a property generator of the waste and

731
00:45:44,150 --> 00:45:52,369
property owners, still have the obligation to maintain that

732
00:45:52,369 --> 00:45:53,000
.

733
00:45:53,000 --> 00:45:55,469
>> Did that answer -- could I provide any more information

734
00:45:55,469 --> 00:45:56,000
on that?

735
00:45:56,000 --> 00:45:58,000
>> Yeah.

736
00:45:58,000 --> 00:46:01,659
>> We do have some repair work that needs to be done on

737
00:46:01,659 --> 00:46:03,000
that facility.

738
00:46:03,000 --> 00:46:06,190
Some dressing that has to be done on the top to level it

739
00:46:06,190 --> 00:46:07,000
back out.

740
00:46:07,000 --> 00:46:08,000
It's settled over time.

741
00:46:08,000 --> 00:46:12,000
And so that's what we're working through right now.

742
00:46:12,000 --> 00:46:22,000
>> Okay.

743
00:46:22,000 --> 00:46:29,000
And I'll kind of give the same two five-year forecast.

744
00:46:29,000 --> 00:46:35,000
This is the zero rate or the baseline five-year forecast.

745
00:46:35,000 --> 00:46:40,570
And you can see kind of in the out years where the number

746
00:46:40,570 --> 00:46:45,000
of working days target starts to decline

747
00:46:45,000 --> 00:46:50,010
and where we have kind of some small net income losses, 20,

748
00:46:50,010 --> 00:46:52,000
21, and 22.

749
00:46:52,000 --> 00:46:56,530
You can see like for FY '19, it's showing an increase in

750
00:46:56,530 --> 00:46:58,000
the net income.

751
00:46:58,000 --> 00:47:03,000
And their target is 52 to 66 days.

752
00:47:03,000 --> 00:47:07,769
Again, you can see partially because of that land sale in

753
00:47:07,769 --> 00:47:13,280
2016 where the number of working days jumped up to about 91

754
00:47:13,280 --> 00:47:14,000
days.

755
00:47:14,000 --> 00:47:20,150
So part of that this year is budgeted to that plan use of

756
00:47:20,150 --> 00:47:25,000
reserves to put that over into capital.

757
00:47:25,000 --> 00:47:28,139
>> What is the debt coverage ratio requirement under the

758
00:47:28,139 --> 00:47:30,000
bond covenants, 1.2?

759
00:47:30,000 --> 00:47:34,909
>> Well, it was under the old revenue bonds, was one and a

760
00:47:34,909 --> 00:47:36,000
quarter.

761
00:47:36,000 --> 00:47:39,000
We have new revenue bond covenants.

762
00:47:39,000 --> 00:47:44,000
We've only issued for DME for the generation facility.

763
00:47:44,000 --> 00:47:47,000
The new covenants are just 1.0.

764
00:47:47,000 --> 00:47:50,599
But in terms of still setting a policy, we like to have

765
00:47:50,599 --> 00:47:53,000
that coverage of 1.25.

766
00:47:53,000 --> 00:47:56,159
Really for the utilities, we're issuing certificates of

767
00:47:56,159 --> 00:48:00,349
obligation, so it's got a tax pledge and a pledge of the

768
00:48:00,349 --> 00:48:02,000
utility revenues.

769
00:48:02,000 --> 00:48:05,710
I think the 1.25 gives a little bit more comfort that we

770
00:48:05,710 --> 00:48:09,000
won't ever have to dip into the tax pledge to do that.

771
00:48:09,000 --> 00:48:12,000
So it's really just kind of a performance goal.

772
00:48:12,000 --> 00:48:19,460
And in terms of revenue bonds ratings, 1.25 is kind of on

773
00:48:19,460 --> 00:48:24,000
the lower end where they're wanting to have 1.5 up to 2 for

774
00:48:24,000 --> 00:48:25,000
higher rated utilities.

775
00:48:25,000 --> 00:48:32,960
So that's why I mentioned the 1.25 is kind of a minimum,

776
00:48:32,960 --> 00:48:39,460
but a stronger coverage ratio would be seen by them as

777
00:48:39,460 --> 00:48:41,000
better.

778
00:48:41,000 --> 00:48:45,619
And I mentioned the proposed really just has a 1% increase

779
00:48:45,619 --> 00:48:48,000
out in the last fiscal year.

780
00:48:48,000 --> 00:48:51,469
But you can see what that does is kind of maintains us at

781
00:48:51,469 --> 00:48:55,579
the upper end of the number of working day targets, keeping

782
00:48:55,579 --> 00:48:59,000
it up to the upper end in these outer years.

783
00:48:59,000 --> 00:49:02,809
Again, really the budget we're focusing on is for this

784
00:49:02,809 --> 00:49:04,000
fiscal year.

785
00:49:04,000 --> 00:49:09,760
But we like to have a good idea and give a good indication

786
00:49:09,760 --> 00:49:14,000
of what the five year plan looks like.

787
00:49:14,000 --> 00:49:20,000
And this is just if an increase occurred in the last year,

788
00:49:20,000 --> 00:49:23,840
the fiscal year, what that increase would be and shows kind

789
00:49:23,840 --> 00:49:28,679
of the current rates for standard and large cart and the

790
00:49:28,679 --> 00:49:31,000
landfill gate rates.

791
00:49:31,000 --> 00:49:35,010
But we've tried to do the same type of comparison that we

792
00:49:35,010 --> 00:49:38,000
do for the water and the wastewater.

793
00:49:38,000 --> 00:49:41,449
It's a little bit more difficult. There's a lot more

794
00:49:41,449 --> 00:49:45,150
variability in terms of what kind of services are offered

795
00:49:45,150 --> 00:49:48,550
by solid waste, how often the pickup is, those kind of

796
00:49:48,550 --> 00:49:49,000
things.

797
00:49:49,000 --> 00:49:54,110
But we've got the darker color is larger carts and the

798
00:49:54,110 --> 00:49:58,000
lighter color is the standard carts.

799
00:49:58,000 --> 00:50:01,000
Ditten is kind of green in the middle here.

800
00:50:01,000 --> 00:50:05,159
We've put this one kind of in alphabetical order, but you

801
00:50:05,159 --> 00:50:09,610
can see in terms of somewhat around the Metroplex, we're a

802
00:50:09,610 --> 00:50:15,000
little bit on the higher side in terms of those services.

803
00:50:15,000 --> 00:50:18,559
You can see Austin that has a higher level of service, more

804
00:50:18,559 --> 00:50:20,000
comparable to ours.

805
00:50:20,000 --> 00:50:25,289
But we try to put this comparison together and be a little

806
00:50:25,289 --> 00:50:30,000
bit consistent between the different utilities.

807
00:50:30,000 --> 00:50:34,960
And with that, I'll answer any other additional questions

808
00:50:34,960 --> 00:50:40,000
you may have or call someone up to the podium.

809
00:50:40,000 --> 00:50:46,440
Chuck, I did have one question on the gate and material of

810
00:50:46,440 --> 00:50:48,000
the gate rate.

811
00:50:48,000 --> 00:50:55,030
What percentage of that revenue is wholesale when you're

812
00:50:55,030 --> 00:51:02,000
talking about converting some of that to with contracts?

813
00:51:02,000 --> 00:51:05,769
Because it's not really I'm assuming that there's not a lot

814
00:51:05,769 --> 00:51:09,000
of residents that are going through the gate.

815
00:51:09,000 --> 00:51:12,280
This is this is mainly going to be a hope, I guess what you

816
00:51:12,280 --> 00:51:14,000
'd call a wholesale rate.

817
00:51:14,000 --> 00:51:31,000
So but what percentage is that? Is it 90 percent or?

818
00:51:31,000 --> 00:51:38,000
OK.

819
00:51:38,000 --> 00:51:44,599
Intuitively, we know it's a very high percentage. Yeah. And

820
00:51:44,599 --> 00:51:48,789
I guess the point being that we're holding rates, no

821
00:51:48,789 --> 00:51:54,449
increases for four years and then one percent increase in

822
00:51:54,449 --> 00:51:55,000
five years.

823
00:51:55,000 --> 00:51:58,579
I just I'm just wondering if we looked at more of a mixture

824
00:51:58,579 --> 00:52:01,949
of is there an opportunity more of an opportunity for

825
00:52:01,949 --> 00:52:04,000
wholesale rate increases?

826
00:52:04,000 --> 00:52:08,079
I don't know what the other options are in the area. And

827
00:52:08,079 --> 00:52:10,119
obviously, I don't want to, you know, we don't want to if

828
00:52:10,119 --> 00:52:13,820
that's a very profitable piece of business, you've got to

829
00:52:13,820 --> 00:52:15,000
be competitive.

830
00:52:15,000 --> 00:52:18,550
But at the same time, just I'm just making the comment that

831
00:52:18,550 --> 00:52:21,869
if there are opportunities on the wholesale side, I'd

832
00:52:21,869 --> 00:52:23,000
rather see those.

833
00:52:23,000 --> 00:52:36,650
I think Scott. The landfill revenues for twenty eighteen,

834
00:52:36,650 --> 00:52:38,760
they're about six point nine million and they're made up of

835
00:52:38,760 --> 00:52:41,000
fees and landfill gate rates and the retail and wholesale

836
00:52:41,000 --> 00:52:42,000
rate.

837
00:52:42,000 --> 00:52:50,219
The wholesale rates approximately two point six million and

838
00:52:50,219 --> 00:52:54,000
the retail rate is three.

839
00:52:54,000 --> 00:52:57,739
I don't have the detail with me is three to three point

840
00:52:57,739 --> 00:53:04,760
five million. So wholesale is still a significant figure at

841
00:53:04,760 --> 00:53:08,000
two point six million.

842
00:53:08,000 --> 00:53:11,460
Mr. Robinson, I can tell you, we've looked at the wholesale

843
00:53:11,460 --> 00:53:14,329
rate every year and we we've had it flat for a number of

844
00:53:14,329 --> 00:53:15,000
years.

845
00:53:15,000 --> 00:53:17,800
And I can tell you that it's our assessment of the

846
00:53:17,800 --> 00:53:21,090
marketplace that we're still in a position to keeping it

847
00:53:21,090 --> 00:53:24,000
flat that makes using our facility attractive,

848
00:53:24,000 --> 00:53:27,329
especially considering all the transportation costs that

849
00:53:27,329 --> 00:53:30,349
some of those wholesalers have to incur to come this far

850
00:53:30,349 --> 00:53:31,000
north.

851
00:53:31,000 --> 00:53:33,469
And so we think that in the future there may be a need to

852
00:53:33,469 --> 00:53:36,019
adjust that rate. But right now we feel like it's the

853
00:53:36,019 --> 00:53:40,030
appropriate level based on the market and what people are

854
00:53:40,030 --> 00:53:43,000
having to pay elsewhere.

855
00:53:43,000 --> 00:53:52,000
Can we sell natural gas when they come?

856
00:53:52,000 --> 00:53:54,000
Any other questions?

857
00:53:54,000 --> 00:54:04,000
Comments? Again, this is this will be the last time we see

858
00:54:04,000 --> 00:54:04,000
this. So we'll have other opportunities.

859
00:54:04,000 --> 00:54:10,000
OK, thank you, Chuck. Appreciate it.

860
00:54:10,000 --> 00:54:15,090
OK, next we have items for individual consideration. Item A

861
00:54:15,090 --> 00:54:19,409
is to consider approval of the Public Utilities Board

862
00:54:19,409 --> 00:54:24,000
meeting minutes of April 24th, 2017.

863
00:54:24,000 --> 00:54:28,000
Those have been distributed, published in advance.

864
00:54:28,000 --> 00:54:37,889
Any questions? Comments? Changes? Hearing none, those will

865
00:54:37,889 --> 00:54:42,000
be adopted as presented.

866
00:54:42,000 --> 00:54:45,570
Item number B is to consider recommending adoption of an

867
00:54:45,570 --> 00:54:50,469
ordinance authorizing city manager to execute a sewer main

868
00:54:50,469 --> 00:54:54,150
cost participation agreement between the city of Denton and

869
00:54:54,150 --> 00:54:57,000
Crawford Hospital Partners, LLC.

870
00:54:57,000 --> 00:55:03,000
This is in participation of oversizing sewer mains.

871
00:55:03,000 --> 00:55:18,000
And PS Aurora is going to leave this discussion.

872
00:55:18,000 --> 00:55:23,079
Just to get you all oriented where we are, this 35W Craw

873
00:55:23,079 --> 00:55:28,000
ford Road, Roads and Ranch is further back west here.

874
00:55:28,000 --> 00:55:32,159
And this is all Hillwood property for Hunter Ranch. And

875
00:55:32,159 --> 00:55:35,000
this project is coming along here, the surgical hospital.

876
00:55:35,000 --> 00:55:39,280
We have an existing sewer line that serves country lakes

877
00:55:39,280 --> 00:55:43,090
development here. And we had oversized that. Why do we

878
00:55:43,090 --> 00:55:45,000
oversized?

879
00:55:45,000 --> 00:55:49,000
A development is required to put a line in to serve their

880
00:55:49,000 --> 00:55:50,000
property.

881
00:55:50,000 --> 00:55:53,409
But if we have outside areas that will drain naturally

882
00:55:53,409 --> 00:55:57,150
through the property, then we look at or we estimate what

883
00:55:57,150 --> 00:56:00,000
the wastewater flows will be from that area.

884
00:56:00,000 --> 00:56:06,739
And that allows for partnering with the development and ups

885
00:56:06,739 --> 00:56:11,000
izing that line. So we pay for that cost.

886
00:56:11,000 --> 00:56:15,929
What is the upsize cost? They may need an 8 inch, but we

887
00:56:15,929 --> 00:56:18,510
participate beyond 10 inch. That's the ordinance that we

888
00:56:18,510 --> 00:56:19,000
have.

889
00:56:19,000 --> 00:56:23,269
So anything beyond 10 inch, if we need to oversize, we pay

890
00:56:23,269 --> 00:56:27,000
for it. And that's what this item is for.

891
00:56:27,000 --> 00:56:31,750
You have seen the cost there. It generally works out pretty

892
00:56:31,750 --> 00:56:35,659
good because what we get is an oversize participation that

893
00:56:35,659 --> 00:56:39,320
if we had to go out and lay that capacity line, that cost

894
00:56:39,320 --> 00:56:40,000
would be much higher.

895
00:56:40,000 --> 00:56:44,809
By doing the oversize participation, we're able to get a

896
00:56:44,809 --> 00:56:49,000
perfect cost, which is much lower cost for us.

897
00:56:49,000 --> 00:56:53,119
This development won't even use an 8 inch full capacity,

898
00:56:53,119 --> 00:56:55,000
but we go to 18 inch.

899
00:56:55,000 --> 00:56:58,590
This allows us to take flows from Hunter Ranch. And we have

900
00:56:58,590 --> 00:57:01,739
a project coming along that would probably take all of the

901
00:57:01,739 --> 00:57:06,000
Robson Ranch project and run it through this line here.

902
00:57:06,000 --> 00:57:10,039
And we are still working on it, and we'll have that back

903
00:57:10,039 --> 00:57:14,000
here for the meeting after the next one possibly.

904
00:57:14,000 --> 00:57:18,179
Okay. So if there are any questions, I'll be happy to

905
00:57:18,179 --> 00:57:19,000
answer.

906
00:57:19,000 --> 00:57:24,079
So basically these oversize participation is going to be

907
00:57:24,079 --> 00:57:30,579
the cost of the pipe, really. I mean, because it didn't

908
00:57:30,579 --> 00:57:32,000
cost that much more.

909
00:57:32,000 --> 00:57:33,000
That's right.

910
00:57:33,000 --> 00:57:36,380
It has to be the same size and it's really the material

911
00:57:36,380 --> 00:57:37,000
cost.

912
00:57:37,000 --> 00:57:40,670
It had to be a little deeper, but that's a little bit of

913
00:57:40,670 --> 00:57:42,000
the cost there.

914
00:57:42,000 --> 00:57:45,860
There's a big drainage ditch by I-35W, and we didn't want

915
00:57:45,860 --> 00:57:48,000
to do an aerial crossing on it.

916
00:57:48,000 --> 00:57:51,000
So we made the line a little deeper.

917
00:57:51,000 --> 00:57:55,000
Okay. Very good. Any other questions?

918
00:57:55,000 --> 00:57:56,000
Question.

919
00:57:56,000 --> 00:57:57,000
Yes, Barbara.

920
00:57:57,000 --> 00:58:00,889
Is this agreement, this looks very similar to the one we

921
00:58:00,889 --> 00:58:06,000
considered last meeting? Am I correct?

922
00:58:06,000 --> 00:58:07,000
Yeah, that was for water.

923
00:58:07,000 --> 00:58:08,000
That was for water.

924
00:58:08,000 --> 00:58:10,000
That is for wastewater.

925
00:58:10,000 --> 00:58:11,000
Thank you.

926
00:58:11,000 --> 00:58:12,000
Okay.

927
00:58:12,000 --> 00:58:14,000
Yeah. Okay.

928
00:58:14,000 --> 00:58:17,000
Other questions?

929
00:58:17,000 --> 00:58:23,079
Okay, this is an item to take action on. Is there a motion

930
00:58:23,079 --> 00:58:26,000
then to on this item?

931
00:58:26,000 --> 00:58:28,000
Move approval.

932
00:58:28,000 --> 00:58:29,000
Second.

933
00:58:29,000 --> 00:58:36,429
Motion to approve. Barbara, second by Susan. Any discussion

934
00:58:36,429 --> 00:58:37,000
?

935
00:58:37,000 --> 00:58:40,000
All in favor then say aye.

936
00:58:40,000 --> 00:58:41,000
Aye.

937
00:58:41,000 --> 00:58:42,000
Any opposed? Same sign.

938
00:58:42,000 --> 00:58:45,000
Okay, motion carries.

939
00:58:45,000 --> 00:58:50,000
Next item we have is our ACM update.

940
00:58:50,000 --> 00:58:53,150
Yes, what we have for you is the action matrix, and it

941
00:58:53,150 --> 00:58:56,000
looks like we've completed most of the items.

942
00:58:56,000 --> 00:58:58,969
I do recognize it says completed, but we still owe you

943
00:58:58,969 --> 00:59:03,159
information on the solid waste salary, FTE comparison, and

944
00:59:03,159 --> 00:59:05,000
we'll have that to you as soon as we can.

945
00:59:05,000 --> 00:59:06,000
Okay.

946
00:59:06,000 --> 00:59:08,000
That's all I have.

947
00:59:08,000 --> 00:59:10,000
Okay.

948
00:59:10,000 --> 00:59:16,360
Okay, concluding items, A is for any ask of any member of

949
00:59:16,360 --> 00:59:24,320
the public utilities board or the public if they have,

950
00:59:24,320 --> 00:59:32,000
would like to see any item on the, any future agendas.

951
00:59:32,000 --> 00:59:37,000
Nobody's raising their hands, so I guess not.

952
00:59:37,000 --> 00:59:43,909
And I guess the, the only other thing left is to adjourn

953
00:59:43,909 --> 00:59:45,000
before I do.

954
00:59:45,000 --> 00:59:48,000
John, is this your last meeting, PUB meeting?

955
00:59:48,000 --> 00:59:53,659
I just want to, I'm starting to get a little bit of bad

956
00:59:53,659 --> 00:59:57,000
vibe from people sitting on my left.

957
00:59:57,000 --> 01:00:01,570
But I do, over the years you've been a big part of the

958
01:00:01,570 --> 01:00:07,010
public, since I've been on it, PUB in one way or another. I

959
01:00:07,010 --> 01:00:07,619
just want to thank you for the job you've done and wish you

960
01:00:07,619 --> 01:00:08,000
good luck in the future.

961
01:00:08,000 --> 01:00:10,309
Well thank you very much. It's been a pleasure working with

962
01:00:10,309 --> 01:00:12,000
each of you and I wish you the very best.

963
01:00:12,000 --> 01:00:14,880
This is a hard decision for me, but one that's exciting at

964
01:00:14,880 --> 01:00:17,519
the same time, but I've enjoyed my time here and I've

965
01:00:17,519 --> 01:00:21,000
appreciated getting to work with each of you. Thank you.

966
01:00:21,000 --> 01:00:22,000
Very good.

967
01:00:22,000 --> 01:00:25,000
With that, is there a motion to adjourn?

968
01:00:25,000 --> 01:00:26,000
So moved.

969
01:00:26,000 --> 01:00:29,000
Motion and a second?

970
01:00:29,000 --> 01:00:30,000
Second.

971
01:00:30,000 --> 01:00:32,000
Thank you, Allen. All in favor say aye.

972
01:00:32,000 --> 01:00:33,000
Aye.

973
01:00:56,000 --> 01:01:06,000
[PAUSE]

974
01:01:26,000 --> 01:01:36,000
[PAUSE]

975
01:01:56,000 --> 01:02:06,000
[PAUSE]

976
01:02:26,000 --> 01:02:36,000
[PAUSE]

977
01:02:56,000 --> 01:03:06,000
[PAUSE]

978
01:03:26,000 --> 01:03:36,000
[PAUSE]

979
01:03:56,000 --> 01:04:06,000
[PAUSE]

980
01:04:26,000 --> 01:04:36,000
[PAUSE]

981
01:04:56,000 --> 01:05:06,000
[PAUSE]

982
01:05:26,000 --> 01:05:36,000
[PAUSE]

983
01:05:56,000 --> 01:06:06,000
[PAUSE]

984
01:06:26,000 --> 01:06:36,000
[PAUSE]

985
01:06:56,000 --> 01:07:06,000
[PAUSE]

986
01:07:26,000 --> 01:07:36,000
[PAUSE]

987
01:07:56,000 --> 01:08:06,000
[PAUSE]

988
01:08:26,000 --> 01:08:36,000
[PAUSE]

989
01:08:56,000 --> 01:09:06,000
[PAUSE]

990
01:09:26,000 --> 01:09:36,000
[PAUSE]

991
01:09:56,000 --> 01:10:06,000
[PAUSE]

992
01:10:26,000 --> 01:10:36,000
[PAUSE]

993
01:10:56,000 --> 01:11:06,000
[PAUSE]

994
01:11:26,000 --> 01:11:36,000
[PAUSE]

995
01:11:56,000 --> 01:12:06,000
[PAUSE]

996
01:12:26,000 --> 01:12:36,000
[PAUSE]

997
01:12:56,000 --> 01:13:06,000
[PAUSE]

998
01:13:26,000 --> 01:13:36,000
[PAUSE]

999
01:13:56,000 --> 01:14:06,000
[PAUSE]

1000
01:14:26,000 --> 01:14:36,000
[PAUSE]

1001
01:14:56,000 --> 01:15:06,000
[PAUSE]

1002
01:15:26,000 --> 01:15:36,000
[PAUSE]

1003
01:15:56,000 --> 01:16:06,000
[PAUSE]

1004
01:16:26,000 --> 01:16:36,000
[PAUSE]

1005
01:16:56,000 --> 01:17:06,000
[PAUSE]

1006
01:17:26,000 --> 01:17:36,000
[PAUSE]

1007
01:17:56,000 --> 01:18:06,000
[PAUSE]

1008
01:18:26,000 --> 01:18:36,000
[PAUSE]

1009
01:18:56,000 --> 01:19:06,000
[PAUSE]

1010
01:19:26,000 --> 01:19:36,000
[PAUSE]

1011
01:19:56,000 --> 01:20:06,000
[PAUSE]

1012
01:20:26,000 --> 01:20:36,000
[PAUSE]

1013
01:20:56,000 --> 01:21:06,000
[PAUSE]

1014
01:21:26,000 --> 01:21:36,000
[PAUSE]

1015
01:21:56,000 --> 01:22:06,000
[PAUSE]

1016
01:22:26,000 --> 01:22:36,000
[PAUSE]

1017
01:22:56,000 --> 01:23:06,000
[PAUSE]

1018
01:23:26,000 --> 01:23:36,000
[PAUSE]

1019
01:23:56,000 --> 01:24:06,000
[PAUSE]

1020
01:24:26,000 --> 01:24:36,000
[PAUSE]

1021
01:24:56,000 --> 01:25:06,000
[PAUSE]

1022
01:25:26,000 --> 01:25:36,000
[PAUSE]

1023
01:25:56,000 --> 01:26:06,000
[PAUSE]

1024
01:26:26,000 --> 01:26:36,000
[PAUSE]

1025
01:26:56,000 --> 01:27:06,000
[PAUSE]

1026
01:27:26,000 --> 01:27:36,000
[PAUSE]

1027
01:27:56,000 --> 01:28:06,000
[PAUSE]

1028
01:28:26,000 --> 01:28:36,000
[PAUSE]

1029
01:28:56,000 --> 01:29:06,000
[PAUSE]

1030
01:29:26,000 --> 01:29:36,000
[PAUSE]

1031
01:29:56,000 --> 01:30:06,000
[PAUSE]

1032
01:30:26,000 --> 01:30:36,000
[PAUSE]

1033
01:30:56,000 --> 01:31:06,000
[PAUSE]

1034
01:31:26,000 --> 01:31:36,000
[PAUSE]

1035
01:31:56,000 --> 01:32:06,000
[PAUSE]

1036
01:32:26,000 --> 01:32:36,000
[PAUSE]

1037
01:32:56,000 --> 01:33:06,000
[PAUSE]

1038
01:33:26,000 --> 01:33:36,000
[PAUSE]

1039
01:33:56,000 --> 01:34:06,000
[PAUSE]

1040
01:34:26,000 --> 01:34:36,000
[PAUSE]

1041
01:34:56,000 --> 01:35:06,000
[PAUSE]

1042
01:35:26,000 --> 01:35:36,000
[PAUSE]

1043
01:35:56,000 --> 01:36:06,000
[PAUSE]

1044
01:36:26,000 --> 01:36:36,000
[PAUSE]

1045
01:36:56,000 --> 01:37:06,000
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1046
01:37:26,000 --> 01:37:36,000
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1047
01:37:56,000 --> 01:38:06,000
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1048
01:38:26,000 --> 01:38:36,000
[PAUSE]

1049
01:38:56,000 --> 01:39:06,000
[PAUSE]

1050
01:39:26,000 --> 01:39:36,000
[PAUSE]

1051
01:39:56,000 --> 01:40:06,000
[PAUSE]

1052
01:40:26,000 --> 01:40:36,000
[PAUSE]

1053
01:40:56,000 --> 01:41:06,000
[PAUSE]

1054
01:41:26,000 --> 01:41:36,000
[PAUSE]

1055
01:41:56,000 --> 01:42:06,000
[PAUSE]

1056
01:42:26,000 --> 01:42:36,000
[PAUSE]

1057
01:42:56,000 --> 01:43:06,000
[PAUSE]

1058
01:43:26,000 --> 01:43:36,000
[PAUSE]

1059
01:43:56,000 --> 01:44:06,000
[PAUSE]

1060
01:44:26,000 --> 01:44:36,000
[PAUSE]

1061
01:44:56,000 --> 01:45:06,000
[PAUSE]

1062
01:45:26,000 --> 01:45:36,000
[PAUSE]

1063
01:45:56,000 --> 01:46:06,000
[PAUSE]

1064
01:46:26,000 --> 01:46:36,000
[PAUSE]

1065
01:46:56,000 --> 01:47:06,000
[PAUSE]

1066
01:47:26,000 --> 01:47:36,000
[PAUSE]

1067
01:47:56,000 --> 01:48:06,000
[PAUSE]

1068
01:48:26,000 --> 01:48:36,000
[PAUSE]

1069
01:48:56,000 --> 01:49:06,000
[PAUSE]

1070
01:49:26,000 --> 01:49:36,000
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1071
01:49:56,000 --> 01:50:06,000
[PAUSE]

1072
01:50:26,000 --> 01:50:36,000
[PAUSE]

1073
01:50:56,000 --> 01:51:06,000
[PAUSE]

1074
01:51:26,000 --> 01:51:36,000
[PAUSE]

1075
01:51:56,000 --> 01:52:06,000
[PAUSE]

1076
01:52:26,000 --> 01:52:36,000
[PAUSE]

1077
01:52:56,000 --> 01:53:06,000
[PAUSE]

1078
01:53:26,000 --> 01:53:36,000
[PAUSE]

1079
01:53:56,000 --> 01:54:06,000
[PAUSE]

1080
01:54:26,000 --> 01:54:36,000
[PAUSE]

1081
01:54:56,000 --> 01:55:06,000
[PAUSE]

1082
01:55:26,000 --> 01:55:36,000
[PAUSE]

1083
01:55:56,000 --> 01:56:06,000
[PAUSE]

1084
01:56:26,000 --> 01:56:36,000
[PAUSE]

1085
01:56:56,000 --> 01:57:06,000
[PAUSE]

1086
01:57:26,000 --> 01:57:36,000
[PAUSE]

1087
01:57:56,000 --> 01:58:06,000
[PAUSE]

1088
01:58:26,000 --> 01:58:36,000
[PAUSE]

1089
01:58:56,000 --> 01:59:06,000
[PAUSE]

1090
01:59:26,000 --> 01:59:36,000
[PAUSE]

1091
01:59:56,000 --> 02:00:06,000
[PAUSE]

1092
02:00:26,000 --> 02:00:36,000
[PAUSE]

1093
02:00:56,000 --> 02:01:06,000
[PAUSE]

1094
02:01:26,000 --> 02:01:36,000
[PAUSE]

1095
02:01:56,000 --> 02:02:06,000
[PAUSE]

1096
02:02:26,000 --> 02:02:36,000
[PAUSE]

1097
02:02:56,000 --> 02:03:06,000
[PAUSE]

1098
02:03:26,000 --> 02:03:36,000
[PAUSE]

1099
02:03:56,000 --> 02:04:06,000
[PAUSE]

1100
02:04:26,000 --> 02:04:36,000
[PAUSE]

1101
02:04:56,000 --> 02:05:06,000
[PAUSE]

1102
02:05:26,000 --> 02:05:36,000
[PAUSE]

1103
02:05:56,000 --> 02:06:06,000
[PAUSE]

1104
02:06:26,000 --> 02:06:36,000
[PAUSE]

1105
02:06:56,000 --> 02:07:06,000
[PAUSE]

1106
02:07:26,000 --> 02:07:36,000
[PAUSE]

1107
02:07:56,000 --> 02:08:06,000
[PAUSE]

1108
02:08:26,000 --> 02:08:36,000
[PAUSE]

1109
02:08:56,000 --> 02:09:06,000
[PAUSE]

1110
02:09:26,000 --> 02:09:36,000
[PAUSE]

1111
02:09:56,000 --> 02:10:06,000
[PAUSE]

1112
02:10:26,000 --> 02:10:36,000
[PAUSE]

1113
02:10:56,000 --> 02:11:06,000
[PAUSE]

1114
02:11:26,000 --> 02:11:36,000
[PAUSE]

1115
02:11:56,000 --> 02:12:06,000
[PAUSE]

1116
02:12:26,000 --> 02:12:36,000
[PAUSE]

1117
02:12:56,000 --> 02:13:06,000
[PAUSE]

1118
02:13:26,000 --> 02:13:36,000
[PAUSE]

1119
02:13:56,000 --> 02:14:06,000
[PAUSE]

1120
02:14:26,000 --> 02:14:36,000
[PAUSE]

1121
02:14:56,000 --> 02:15:06,000
[PAUSE]

1122
02:15:26,000 --> 02:15:36,000
[PAUSE]

1123
02:15:56,000 --> 02:16:06,000
[PAUSE]

1124
02:16:26,000 --> 02:16:36,000
[PAUSE]

1125
02:16:56,000 --> 02:17:06,000
[PAUSE]

1126
02:17:26,000 --> 02:17:36,000
[PAUSE]

1127
02:17:56,000 --> 02:18:06,000
[PAUSE]

1128
02:18:26,000 --> 02:18:36,000
[PAUSE]

1129
02:18:56,000 --> 02:19:06,000
[PAUSE]

1130
02:19:26,000 --> 02:19:36,000
[PAUSE]

1131
02:19:56,000 --> 02:20:06,000
[PAUSE]

1132
02:20:26,000 --> 02:20:36,000
[PAUSE]

1133
02:20:56,000 --> 02:21:06,000
[PAUSE]

1134
02:21:26,000 --> 02:21:36,000
[PAUSE]

1135
02:21:56,000 --> 02:22:06,000
[PAUSE]

1136
02:22:26,000 --> 02:22:36,000
[PAUSE]

1137
02:22:56,000 --> 02:23:06,000
[PAUSE]

1138
02:23:26,000 --> 02:23:36,000
[PAUSE]

1139
02:23:56,000 --> 02:24:06,000
[PAUSE]

1140
02:24:26,000 --> 02:24:36,000
[PAUSE]

1141
02:24:56,000 --> 02:25:06,000
[PAUSE]

1142
02:25:26,000 --> 02:25:36,000
[PAUSE]

1143
02:25:56,000 --> 02:26:06,000
[PAUSE]

1144
02:26:26,000 --> 02:26:36,000
[PAUSE]

1145
02:26:56,000 --> 02:27:06,000
[PAUSE]

1146
02:27:26,000 --> 02:27:36,000
[PAUSE]

1147
02:27:56,000 --> 02:28:06,000
[PAUSE]

1148
02:28:26,000 --> 02:28:36,000
[PAUSE]

1149
02:28:56,000 --> 02:29:06,000
[PAUSE]

1150
02:29:26,000 --> 02:29:36,000
[PAUSE]

1151
02:29:56,000 --> 02:30:06,000
[PAUSE]

1152
02:30:26,000 --> 02:30:36,000
[PAUSE]

1153
02:30:56,000 --> 02:31:06,000
[PAUSE]

1154
02:31:26,000 --> 02:31:36,000
[PAUSE]

1155
02:31:56,000 --> 02:32:06,000
[PAUSE]

1156
02:32:26,000 --> 02:32:36,000
[PAUSE]

1157
02:32:56,000 --> 02:33:06,000
[PAUSE]

1158
02:33:26,000 --> 02:33:36,000
[PAUSE]

1159
02:33:56,000 --> 02:34:06,000
[PAUSE]

1160
02:34:26,000 --> 02:34:36,000
[PAUSE]

1161
02:34:56,000 --> 02:35:06,000
[PAUSE]

1162
02:35:26,000 --> 02:35:36,000
[PAUSE]

1163
02:35:56,000 --> 02:36:06,000
[PAUSE]

1164
02:36:26,000 --> 02:36:36,000
[PAUSE]

1165
02:36:56,000 --> 02:37:06,000
[PAUSE]

1166
02:37:26,000 --> 02:37:36,000
[PAUSE]

1167
02:37:56,000 --> 02:38:06,000
[PAUSE]

1168
02:38:26,000 --> 02:38:36,000
[PAUSE]

1169
02:38:56,000 --> 02:39:06,000
[PAUSE]

1170
02:39:26,000 --> 02:39:36,000
[PAUSE]

1171
02:39:56,000 --> 02:40:06,000
[PAUSE]

1172
02:40:26,000 --> 02:40:36,000
[PAUSE]

1173
02:40:56,000 --> 02:41:06,000
[PAUSE]

1174
02:41:26,000 --> 02:41:36,000
[PAUSE]

1175
02:41:56,000 --> 02:42:06,000
[PAUSE]

1176
02:42:26,000 --> 02:42:36,000
[PAUSE]

1177
02:42:56,000 --> 02:43:06,000
[PAUSE]

1178
02:43:26,000 --> 02:43:36,000
[PAUSE]

1179
02:43:56,000 --> 02:44:06,000
[PAUSE]

1180
02:44:26,000 --> 02:44:36,000
[PAUSE]

1181
02:44:56,000 --> 02:45:06,000
[PAUSE]

1182
02:45:26,000 --> 02:45:36,000
[PAUSE]

1183
02:45:56,000 --> 02:46:06,000
[PAUSE]

1184
02:46:26,000 --> 02:46:36,000
[PAUSE]

1185
02:46:56,000 --> 02:47:06,000
[PAUSE]

1186
02:47:26,000 --> 02:47:36,000
[PAUSE]

1187
02:47:56,000 --> 02:48:06,000
[PAUSE]

1188
02:48:26,000 --> 02:48:36,000
[PAUSE]

1189
02:48:56,000 --> 02:49:06,000
[PAUSE]

1190
02:49:26,000 --> 02:49:36,000
[PAUSE]

1191
02:49:56,000 --> 02:50:06,000
[PAUSE]

1192
02:50:26,000 --> 02:50:36,000
[PAUSE]

1193
02:50:56,000 --> 02:51:06,000
[PAUSE]

1194
02:51:26,000 --> 02:51:36,000
[PAUSE]

1195
02:51:56,000 --> 02:52:06,000
[PAUSE]

1196
02:52:26,000 --> 02:52:36,000
[PAUSE]

1197
02:52:56,000 --> 02:53:06,000
[PAUSE]

1198
02:53:26,000 --> 02:53:36,000
[PAUSE]

1199
02:53:56,000 --> 02:54:06,000
[PAUSE]

1200
02:54:26,000 --> 02:54:36,000
[PAUSE]

1201
02:54:56,000 --> 02:55:06,000
[PAUSE]

1202
02:55:26,000 --> 02:55:36,000
[PAUSE]

1203
02:55:56,000 --> 02:56:06,000
[PAUSE]

1204
02:56:26,000 --> 02:56:36,000
[PAUSE]

1205
02:56:56,000 --> 02:57:06,000
[PAUSE]

1206
02:57:26,000 --> 02:57:36,000
[PAUSE]

1207
02:57:56,000 --> 02:58:06,000
[PAUSE]

1208
02:58:26,000 --> 02:58:36,000
[PAUSE]

1209
02:58:56,000 --> 02:59:06,000
[PAUSE]

1210
02:59:26,000 --> 02:59:36,000
[PAUSE]

1211
02:59:56,000 --> 03:00:06,000
[PAUSE]

1212
03:00:26,000 --> 03:00:36,000
[PAUSE]

1213
03:00:56,000 --> 03:01:06,000
[PAUSE]

1214
03:01:26,000 --> 03:01:36,000
[PAUSE]

1215
03:01:56,000 --> 03:02:06,000
[PAUSE]

1216
03:02:26,000 --> 03:02:36,000
[PAUSE]

1217
03:02:56,000 --> 03:03:06,000
[PAUSE]

1218
03:03:26,000 --> 03:03:36,000
[PAUSE]

1219
03:03:56,000 --> 03:04:06,000
[PAUSE]

1220
03:04:26,000 --> 03:04:36,000
[PAUSE]

1221
03:04:56,000 --> 03:05:06,000
[PAUSE]

1222
03:05:26,000 --> 03:05:36,000
[PAUSE]

1223
03:05:56,000 --> 03:06:06,000
[PAUSE]

1224
03:06:26,000 --> 03:06:36,000
[PAUSE]

1225
03:06:56,000 --> 03:07:06,000
[PAUSE]

1226
03:07:26,000 --> 03:07:36,000
[PAUSE]

1227
03:07:56,000 --> 03:08:06,000
[PAUSE]

1228
03:08:26,000 --> 03:08:36,000
[PAUSE]

1229
03:08:56,000 --> 03:09:06,000
[PAUSE]

1230
03:09:26,000 --> 03:09:36,000
[PAUSE]

1231
03:09:56,000 --> 03:10:06,000
[PAUSE]

1232
03:10:26,000 --> 03:10:36,000
[PAUSE]

1233
03:10:56,000 --> 03:11:06,000
[PAUSE]

1234
03:11:26,000 --> 03:11:36,000
[PAUSE]

1235
03:11:56,000 --> 03:12:06,000
[PAUSE]

1236
03:12:26,000 --> 03:12:36,000
[PAUSE]

1237
03:12:56,000 --> 03:13:06,000
[PAUSE]

1238
03:13:26,000 --> 03:13:36,000
[PAUSE]

1239
03:13:56,000 --> 03:14:06,000
[PAUSE]

1240
03:14:26,000 --> 03:14:36,000
[PAUSE]

1241
03:14:56,000 --> 03:15:06,000
[PAUSE]

1242
03:15:26,000 --> 03:15:36,000
[PAUSE]

1243
03:15:56,000 --> 03:16:06,000
[PAUSE]

1244
03:16:26,000 --> 03:16:36,000
[PAUSE]

1245
03:16:56,000 --> 03:17:06,000
[PAUSE]

1246
03:17:26,000 --> 03:17:36,000
[PAUSE]

1247
03:17:56,000 --> 03:18:06,000
[PAUSE]

1248
03:18:26,000 --> 03:18:36,000
[PAUSE]

1249
03:18:56,000 --> 03:19:06,000
[PAUSE]

1250
03:19:26,000 --> 03:19:36,000
[PAUSE]

1251
03:19:56,000 --> 03:20:06,000
[PAUSE]

1252
03:20:26,000 --> 03:20:36,000
[PAUSE]

1253
03:20:56,000 --> 03:21:06,000
[PAUSE]

1254
03:21:26,000 --> 03:21:36,000
[PAUSE]

1255
03:21:56,000 --> 03:22:06,000
[PAUSE]

1256
03:22:26,000 --> 03:22:36,000
[PAUSE]

1257
03:22:56,000 --> 03:23:06,000
[PAUSE]

1258
03:23:26,000 --> 03:23:36,000
[PAUSE]

1259
03:23:56,000 --> 03:24:06,000
[PAUSE]

1260
03:24:26,000 --> 03:24:36,000
[PAUSE]

1261
03:24:56,000 --> 03:25:06,000
[PAUSE]

1262
03:25:26,000 --> 03:25:36,000
[PAUSE]

1263
03:25:56,000 --> 03:26:06,000
[PAUSE]

1264
03:26:26,000 --> 03:26:36,000
[PAUSE]

1265
03:26:56,000 --> 03:27:06,000
[PAUSE]

1266
03:27:26,000 --> 03:27:36,000
[PAUSE]

1267
03:27:56,000 --> 03:28:06,000
[PAUSE]

1268
03:28:26,000 --> 03:28:36,000
[PAUSE]

1269
03:28:56,000 --> 03:29:06,000
[PAUSE]

1270
03:29:26,000 --> 03:29:36,000
[PAUSE]

1271
03:29:56,000 --> 03:30:06,000
[PAUSE]

1272
03:30:26,000 --> 03:30:36,000
[PAUSE]

1273
03:30:56,000 --> 03:31:06,000
[PAUSE]

1274
03:31:26,000 --> 03:31:36,000
[PAUSE]

1275
03:31:56,000 --> 03:32:06,000
[PAUSE]

1276
03:32:26,000 --> 03:32:36,000
[PAUSE]

1277
03:32:56,000 --> 03:33:06,000
[PAUSE]

1278
03:33:26,000 --> 03:33:36,000
[PAUSE]

1279
03:33:56,000 --> 03:34:06,000
[PAUSE]

1280
03:34:26,000 --> 03:34:36,000
[PAUSE]

1281
03:34:56,000 --> 03:35:06,000
[PAUSE]

1282
03:35:26,000 --> 03:35:36,000
[PAUSE]

1283
03:35:56,000 --> 03:36:06,000
[PAUSE]

1284
03:36:26,000 --> 03:36:36,000
[PAUSE]

1285
03:36:56,000 --> 03:37:06,000
[PAUSE]

1286
03:37:26,000 --> 03:37:36,000
[PAUSE]

1287
03:37:56,000 --> 03:38:06,000
[PAUSE]

1288
03:38:26,000 --> 03:38:36,000
[PAUSE]

1289
03:38:56,000 --> 03:39:06,000
[PAUSE]

1290
03:39:26,000 --> 03:39:36,000
[PAUSE]

1291
03:39:56,000 --> 03:40:06,000
[PAUSE]

1292
03:40:26,000 --> 03:40:36,000
[PAUSE]

1293
03:40:56,000 --> 03:41:06,000
[PAUSE]

1294
03:41:26,000 --> 03:41:36,000
[PAUSE]

1295
03:41:56,000 --> 03:42:06,000
[PAUSE]

1296
03:42:26,000 --> 03:42:36,000
[PAUSE]

1297
03:42:56,000 --> 03:43:06,000
[PAUSE]

1298
03:43:26,000 --> 03:43:36,000
[PAUSE]

1299
03:43:56,000 --> 03:44:06,000
[PAUSE]

1300
03:44:26,000 --> 03:44:36,000
[PAUSE]

1301
03:44:56,000 --> 03:45:06,000
[PAUSE]

1302
03:45:26,000 --> 03:45:36,000
[PAUSE]

1303
03:45:56,000 --> 03:46:06,000
[PAUSE]

1304
03:46:26,000 --> 03:46:36,000
[PAUSE]

1305
03:46:56,000 --> 03:47:06,000
[PAUSE]

1306
03:47:26,000 --> 03:47:36,000
[PAUSE]

1307
03:47:56,000 --> 03:48:06,000
[PAUSE]

1308
03:48:26,000 --> 03:48:36,000
[PAUSE]

1309
03:48:56,000 --> 03:49:06,000
[PAUSE]

1310
03:49:26,000 --> 03:49:36,000
[PAUSE]

1311
03:49:56,000 --> 03:50:06,000
[PAUSE]

1312
03:50:26,000 --> 03:50:36,000
[PAUSE]

1313
03:50:56,000 --> 03:51:06,000
[PAUSE]

1314
03:51:26,000 --> 03:51:36,000
[PAUSE]

1315
03:51:56,000 --> 03:52:06,000
[PAUSE]

1316
03:52:26,000 --> 03:52:36,000
[PAUSE]

1317
03:52:56,000 --> 03:53:06,000
[PAUSE]

1318
03:53:26,000 --> 03:53:36,000
[PAUSE]

1319
03:53:56,000 --> 03:54:06,000
[PAUSE]

1320
03:54:26,000 --> 03:54:36,000
[PAUSE]

1321
03:54:56,000 --> 03:55:06,000
[PAUSE]

1322
03:55:26,000 --> 03:55:36,000
[PAUSE]

1323
03:55:56,000 --> 03:56:06,000
[PAUSE]

1324
03:56:26,000 --> 03:56:36,000
[PAUSE]

1325
03:56:56,000 --> 03:57:06,000
[PAUSE]

1326
03:57:26,000 --> 03:57:36,000
[PAUSE]

1327
03:57:56,000 --> 03:58:06,000
[PAUSE]

1328
03:58:26,000 --> 03:58:36,000
[PAUSE]

1329
03:58:56,000 --> 03:59:06,000
[PAUSE]

1330
03:59:26,000 --> 03:59:36,000
[PAUSE]

1331
03:59:56,000 --> 04:00:06,000
[PAUSE]