Jun 26, 2017 Public Utilities Board on 2017-06-26 9:00 AM

[PAUSE] OK, it's 9 o'clock. So we're going to call the June 26, 2017 Public Utility Board meeting to order. And first we have on the agenda is our closed meeting, the open meeting at 914. And on the regular meeting items, items for individual consideration, first item we have are the Public Utility Board meeting of June 12, 2017. These minutes have been distributed in advance. Are there any comments, changes, corrections from any of the members? None? Seeing none, then those minutes will stand approved as submitted. Item B is consider recommending approval of the DME fiscal year 2017-2018 operating and capital budget. Dr. Springer. Thank you, Chair Robinson. I've just got brief slides for each of the budgets. And I do have one extra slide in terms of the DME that I'll go over. I think it was something that the board had asked for, another comparison of rates. So this is the five-year forecast. But what the board is considering is the proposed 2018 budget. You can see total revenues with planned use of reserves at about $7.5 million. So we have revenues of about $173.7, use of reserves of about $7.5 million for $181 million, and then $181 million in expenditures. The proposed budget has a slight rate decrease of 1% across the customer classes. And let me go to this slide, too. This is a comparison of DME's current rates in 2017 and what they will be within this proposed five-year, where we're taking rates down over the five-year period in comparison to some of the other cities. You can see Georgetown, San Antonio, Austin, Brownsville, as well as some of the co-ops, co-serve is in there. And you can see in green is the other members that are in with the power plant, Bryant, Greenville, and Gar land. And with that, we'll take any questions regarding DME's proposed budget. Questions? Speaking of this slide, I like the trend. That looks good. I appreciate the simplicity of it, too. Compared to the other slide. Well, I can actually read the names. I don't know the program we're on, which is the rate reduction and converting to renewables and saving money in that manner. But who knows what the rest of these are? It's good to see the ones taken out that are just purely, I guess, the retail side of it. The ones you see advertised, free nights and all that good stuff. So this is a good comparison. Any questions on anything else on the-- one question I had in the budget is there's a pretty good increase on transmission by others. It's like 22% or about $1,040,000. So one of the programs that's been supported by the Public Utility Commission in Texas is to continue to build out more transmission system in order to get the wind and solar power. There's 18,000 megawatts of wind currently installed in remote parts of Texas to build transmission line to get that power to load centers. There's another 10,000 megawatts planned in the future. Put that in comparison, total ERCOT load is around 70,000. And so to move that much power to continue to build transmission just like we are for age and upgrade, but also to move that power. And so we all share in that cost of that transmission as it happens. OK. Got you. Thanks. OK, any other questions of the-- Chuck, for the DME budget? This also includes, of course, a capital improvement plan or capital budget for next year as well. So if there are no questions, is there a motion then to recommend approval of the 2017-18 DME operating and capital budget? Motion by Barbara. Is there a second? Second. Second by Charlie. Any discussion? All in favor say aye. Aye. Any opposed? Same sign. Thank you. Item C. This is the water utility budget. I've just got the five-year forecast up in terms of the operating budget for fiscal year 2018, 47, 809 in revenue and expense and no rate adjustment. We'll mention we're continuing-- we've kind of leveled it out, but we're continuing to do the revenue-funded capital in terms of at the targets that were set. We've been able to level it out because of some of the fund balance within the revenue-funded capital fund, the capital fund where we place those funds. So we've been able to level it out, but that will continue. With that, I'll open it up to any questions regarding the water fund. Questions? Anyone? No? Is there a motion then to approve item C, 2017-18 water operating and capital budget? So moved. Motion? Second. Any discussion? All in favor say aye. Any opposed? Same sign. OK. Chuck, you're on the roll. This is for the wastewater budget for 2018. In terms of this, it's $33.2 million in revenue, slight drawdown of $793,034.023 in expenses. And part of this drawdown, if you look at 2017, we planned to drawdown reserves. And that really comes from that one-time cash infusion related to the refunding of 4.4. You can see in the estimate for 2017 is that we haven't drawn down all those reserves. So we're really drawing down a little bit more in 2018 just the timing in terms of the revenue-funded capital and when they needed it. So that's really the only difference. And again, no recommended rate increase. And to continue the capital program as well as the revenue funded capital program. OK, questions from any member? Is there a motion then to recommend approval of wastewater fiscal year '17-'18? Item number D. Motion by Brendan. Second? Second by Charlie. Any discussion? All in favor say aye. Aye. Any opposed? Same sign. OK, motion carries. And item E, solid waste. And here is the proposed solid waste budget. About 38, just slightly over 38 million in revenues projected. Small planned use of reserves of 512,000. This kind of relates to a property purchase between the solid waste fund and DME. This just transfers that money over for their capital program. It came in as an operating revenue due to accounting rules and expenses 38.5 to 8, which includes that transfer of the 512. No rate adjustment proposed here and a continuation of their capital program also. OK, any questions on solid waste and recycling? Hearing none, is there a motion then to recommend approval of item E? Move approval. Motion and second? Second from Brendan. Any discussion? All in favor say aye. Aye. Any opposed? Same sign. Motion carries. And I do have one more slide just on next steps. So you know what's coming in terms of after this. The proposed rate ordinances, water and wastewater, there's no rate adjustments. But there's some minor changes that need to be made to language in terms of that. So that will be coming back. The electric with the reduction in rates will come back in solid waste, even though there's no change in rates. They want to do some clarification on some rates that were set by the director in the past. And they want to fully include those in the rate ordinance. So you will be receiving rate ordinances at the next meeting. They'll present those at the next meeting and then come back on the 24th for consideration of the board of those rate ordinances. All of that goes to the city council, the proposed utility budgets and proposed rate ordinance. All of that goes to the city council and the proposed budget on the 31st. They go through their process and council's schedule to consider the budgets for approval on September 19th. So just wanted to let you know the upcoming schedule and how it'll be handled after it leaves the board and goes to the council. Very good. That's it. Thank you, Chuck. Thank you. Just want to say that it was a great-- I thought a great process this year. I mean, basically the challenge was without rate increases and finding efficiencies, I think everybody did a great job. I'm sure there was a lot of hard work that went into this. So for anybody who-- this is the first time you've seen us talk about budget, you missed the last three, or four, or five meetings. We've been talking about them for a while. Just because we didn't have questions today, they've been answered in the past. And appreciate y'all's patience working through that. Very good job. Item F is ACM update. And actually, everything on the new business matrix has been accomplished or completed. Completed, maybe. Accomplished, maybe. That's a strong word, I guess. But anyway, and now's the time. If any member has anything for new business action items going forward, we can put them on the matrix for future meetings. OK. Hearing none, all right. Very good. OK. So concluding items, again, any inquiries or comments that don't require action from any board members or don't see any better from the public, so none of that. So I guess at this time, we'll go at 9.27. We will go back into closed meeting. And those who have something to do with the next item, let's start with item number two.