1 00:00:00,000 --> 00:00:20,839 [PAUSE] 2 00:00:20,839 --> 00:00:23,199 OK, it's 9 o'clock. 3 00:00:23,199 --> 00:00:27,690 So we're going to call the June 26, 2017 Public Utility 4 00:00:27,690 --> 00:00:29,239 Board 5 00:00:29,239 --> 00:00:30,839 meeting to order. 6 00:00:30,839 --> 00:00:37,880 And first we have on the agenda is our closed meeting, 7 00:00:37,880 --> 00:00:41,840 the open meeting at 914. 8 00:00:41,840 --> 00:00:48,200 And on the regular meeting items, 9 00:00:48,200 --> 00:00:50,640 items for individual consideration, 10 00:00:50,640 --> 00:00:54,840 first item we have are the Public Utility Board 11 00:00:54,840 --> 00:00:58,280 meeting of June 12, 2017. 12 00:00:58,280 --> 00:01:01,159 These minutes have been distributed in advance. 13 00:01:01,159 --> 00:01:05,680 Are there any comments, changes, corrections 14 00:01:05,680 --> 00:01:06,799 from any of the members? 15 00:01:06,799 --> 00:01:08,599 None? 16 00:01:08,599 --> 00:01:11,040 Seeing none, then those minutes will stand 17 00:01:11,040 --> 00:01:14,079 approved as submitted. 18 00:01:14,079 --> 00:01:19,579 Item B is consider recommending approval of the DME fiscal 19 00:01:19,579 --> 00:01:19,760 year 20 00:01:19,760 --> 00:01:23,400 2017-2018 operating and capital budget. 21 00:01:23,400 --> 00:01:24,200 Dr. Springer. 22 00:01:27,680 --> 00:01:30,480 Thank you, Chair Robinson. 23 00:01:30,480 --> 00:01:36,840 I've just got brief slides for each of the budgets. 24 00:01:36,840 --> 00:01:43,439 And I do have one extra slide in terms of the DME 25 00:01:43,439 --> 00:01:44,719 that I'll go over. 26 00:01:44,719 --> 00:01:46,879 I think it was something that the board had asked for, 27 00:01:46,879 --> 00:01:49,799 another comparison of rates. 28 00:01:49,799 --> 00:01:52,959 So this is the five-year forecast. 29 00:01:52,959 --> 00:01:57,359 But what the board is considering is the proposed 2018 30 00:01:57,359 --> 00:01:58,159 budget. 31 00:01:58,159 --> 00:02:01,840 You can see total revenues with planned use of reserves 32 00:02:01,840 --> 00:02:04,000 at about $7.5 million. 33 00:02:04,000 --> 00:02:07,519 So we have revenues of about $173.7, 34 00:02:07,519 --> 00:02:13,080 use of reserves of about $7.5 million for $181 million, 35 00:02:13,080 --> 00:02:17,000 and then $181 million in expenditures. 36 00:02:17,000 --> 00:02:20,479 The proposed budget has a slight rate decrease 37 00:02:20,479 --> 00:02:24,400 of 1% across the customer classes. 38 00:02:27,360 --> 00:02:29,560 And let me go to this slide, too. 39 00:02:29,560 --> 00:02:35,840 This is a comparison of DME's current rates in 2017 40 00:02:35,840 --> 00:02:40,080 and what they will be within this proposed five-year, where 41 00:02:40,080 --> 00:02:44,069 we're taking rates down over the five-year period in 42 00:02:44,069 --> 00:02:44,840 comparison 43 00:02:44,840 --> 00:02:47,080 to some of the other cities. 44 00:02:47,080 --> 00:02:52,800 You can see Georgetown, San Antonio, Austin, Brownsville, 45 00:02:52,800 --> 00:02:56,759 as well as some of the co-ops, co-serve is in there. 46 00:02:59,520 --> 00:03:05,319 And you can see in green is the other members that 47 00:03:05,319 --> 00:03:10,020 are in with the power plant, Bryant, Greenville, and Gar 48 00:03:10,020 --> 00:03:11,680 land. 49 00:03:11,680 --> 00:03:14,960 And with that, we'll take any questions regarding 50 00:03:14,960 --> 00:03:17,520 DME's proposed budget. 51 00:03:20,680 --> 00:03:21,180 Questions? 52 00:03:26,639 --> 00:03:28,680 Speaking of this slide, I like the trend. 53 00:03:34,080 --> 00:03:35,840 That looks good. 54 00:03:35,840 --> 00:03:39,000 I appreciate the simplicity of it, too. 55 00:03:39,000 --> 00:03:40,400 Compared to the other slide. 56 00:03:40,400 --> 00:03:50,199 Well, I can actually read the names. 57 00:03:50,199 --> 00:03:53,800 I don't know the program we're on, 58 00:03:53,800 --> 00:03:59,240 which is the rate reduction and converting to renewables 59 00:03:59,240 --> 00:04:03,319 and saving money in that manner. 60 00:04:03,319 --> 00:04:06,560 But who knows what the rest of these are? 61 00:04:06,560 --> 00:04:09,280 It's good to see the ones taken out 62 00:04:09,280 --> 00:04:17,399 that are just purely, I guess, the retail side of it. 63 00:04:17,399 --> 00:04:20,680 The ones you see advertised, free nights and all 64 00:04:20,680 --> 00:04:21,360 that good stuff. 65 00:04:21,360 --> 00:04:23,360 So this is a good comparison. 66 00:04:29,000 --> 00:04:35,439 Any questions on anything else on the-- 67 00:04:35,439 --> 00:04:39,720 one question I had in the budget is 68 00:04:39,720 --> 00:04:43,240 there's a pretty good increase on transmission by others. 69 00:04:45,920 --> 00:05:00,000 It's like 22% or about $1,040,000. 70 00:05:00,000 --> 00:05:04,439 So one of the programs that's been 71 00:05:04,439 --> 00:05:06,720 supported by the Public Utility Commission in Texas 72 00:05:06,720 --> 00:05:10,560 is to continue to build out more transmission system in 73 00:05:10,560 --> 00:05:10,759 order 74 00:05:10,759 --> 00:05:13,519 to get the wind and solar power. 75 00:05:13,519 --> 00:05:17,319 There's 18,000 megawatts of wind currently 76 00:05:17,319 --> 00:05:21,600 installed in remote parts of Texas 77 00:05:21,600 --> 00:05:23,879 to build transmission line to get that power to load 78 00:05:23,879 --> 00:05:24,759 centers. 79 00:05:24,759 --> 00:05:29,759 There's another 10,000 megawatts planned in the future. 80 00:05:29,759 --> 00:05:33,160 Put that in comparison, total ERCOT load 81 00:05:33,160 --> 00:05:35,160 is around 70,000. 82 00:05:35,160 --> 00:05:39,279 And so to move that much power to continue 83 00:05:39,279 --> 00:05:45,600 to build transmission just like we are for age and upgrade, 84 00:05:45,600 --> 00:05:47,160 but also to move that power. 85 00:05:47,160 --> 00:05:49,879 And so we all share in that cost of that transmission 86 00:05:49,879 --> 00:05:50,639 as it happens. 87 00:05:50,639 --> 00:05:51,120 OK. 88 00:05:51,120 --> 00:05:52,120 Got you. 89 00:05:52,120 --> 00:05:52,620 Thanks. 90 00:05:55,759 --> 00:05:59,040 OK, any other questions of the-- 91 00:05:59,040 --> 00:06:02,560 Chuck, for the DME budget? 92 00:06:02,560 --> 00:06:09,279 This also includes, of course, a capital improvement plan 93 00:06:09,279 --> 00:06:12,040 or capital budget for next year as well. 94 00:06:12,040 --> 00:06:15,480 So if there are no questions, is there a motion then 95 00:06:15,480 --> 00:06:22,720 to recommend approval of the 2017-18 DME operating 96 00:06:22,720 --> 00:06:25,839 and capital budget? 97 00:06:25,839 --> 00:06:26,839 Motion by Barbara. 98 00:06:26,839 --> 00:06:27,480 Is there a second? 99 00:06:27,480 --> 00:06:28,240 Second. 100 00:06:28,240 --> 00:06:30,319 Second by Charlie. 101 00:06:30,319 --> 00:06:32,800 Any discussion? 102 00:06:32,800 --> 00:06:33,839 All in favor say aye. 103 00:06:33,839 --> 00:06:34,519 Aye. 104 00:06:34,519 --> 00:06:35,079 Any opposed? 105 00:06:35,079 --> 00:06:36,959 Same sign. 106 00:06:36,959 --> 00:06:38,160 Thank you. 107 00:06:38,160 --> 00:06:42,439 Item C. 108 00:06:42,439 --> 00:06:45,160 This is the water utility budget. 109 00:06:45,160 --> 00:06:47,480 I've just got the five-year forecast up 110 00:06:47,480 --> 00:06:54,839 in terms of the operating budget for fiscal year 2018, 47, 111 00:06:54,839 --> 00:06:55,759 809 112 00:06:55,759 --> 00:07:02,160 in revenue and expense and no rate adjustment. 113 00:07:02,160 --> 00:07:04,240 We'll mention we're continuing-- 114 00:07:04,240 --> 00:07:05,759 we've kind of leveled it out, but we're 115 00:07:05,759 --> 00:07:09,519 continuing to do the revenue-funded capital 116 00:07:09,519 --> 00:07:13,720 in terms of at the targets that were set. 117 00:07:13,720 --> 00:07:16,439 We've been able to level it out because of some of the fund 118 00:07:16,439 --> 00:07:22,360 balance within the revenue-funded capital 119 00:07:22,360 --> 00:07:25,519 fund, the capital fund where we place those funds. 120 00:07:25,519 --> 00:07:30,199 So we've been able to level it out, but that will continue. 121 00:07:30,199 --> 00:07:32,439 With that, I'll open it up to any questions 122 00:07:32,439 --> 00:07:33,759 regarding the water fund. 123 00:07:36,959 --> 00:07:38,319 Questions? 124 00:07:38,319 --> 00:07:40,439 Anyone? 125 00:07:40,439 --> 00:07:41,480 No? 126 00:07:41,480 --> 00:07:49,920 Is there a motion then to approve item C, 2017-18 water 127 00:07:49,920 --> 00:07:52,480 operating and capital budget? 128 00:07:52,480 --> 00:07:54,040 So moved. 129 00:07:54,040 --> 00:07:56,439 Motion? 130 00:07:56,439 --> 00:07:57,480 Second. 131 00:07:57,480 --> 00:07:59,439 Any discussion? 132 00:07:59,439 --> 00:08:01,480 All in favor say aye. 133 00:08:01,480 --> 00:08:02,000 Any opposed? 134 00:08:02,000 --> 00:08:04,120 Same sign. 135 00:08:04,120 --> 00:08:05,199 OK. 136 00:08:05,199 --> 00:08:08,319 Chuck, you're on the roll. 137 00:08:08,319 --> 00:08:15,360 This is for the wastewater budget for 2018. 138 00:08:15,360 --> 00:08:20,600 In terms of this, it's $33.2 million in revenue, 139 00:08:20,600 --> 00:08:28,319 slight drawdown of $793,034.023 in expenses. 140 00:08:28,319 --> 00:08:32,320 And part of this drawdown, if you look at 2017, 141 00:08:32,320 --> 00:08:35,080 we planned to drawdown reserves. 142 00:08:35,080 --> 00:08:39,879 And that really comes from that one-time cash infusion 143 00:08:39,879 --> 00:08:40,480 related 144 00:08:40,480 --> 00:08:42,759 to the refunding of 4.4. 145 00:08:42,759 --> 00:08:47,679 You can see in the estimate for 2017 146 00:08:47,679 --> 00:08:50,039 is that we haven't drawn down all those reserves. 147 00:08:50,039 --> 00:08:54,120 So we're really drawing down a little bit more in 2018 148 00:08:54,120 --> 00:08:58,960 just the timing in terms of the revenue-funded capital 149 00:08:58,960 --> 00:09:00,200 and when they needed it. 150 00:09:00,200 --> 00:09:03,559 So that's really the only difference. 151 00:09:03,559 --> 00:09:08,840 And again, no recommended rate increase. 152 00:09:08,840 --> 00:09:12,440 And to continue the capital program as well as the revenue 153 00:09:12,440 --> 00:09:15,919 funded capital program. 154 00:09:15,919 --> 00:09:18,919 OK, questions from any member? 155 00:09:21,039 --> 00:09:26,120 Is there a motion then to recommend approval 156 00:09:26,120 --> 00:09:30,759 of wastewater fiscal year '17-'18? 157 00:09:30,759 --> 00:09:35,639 Item number D. Motion by Brendan. 158 00:09:35,639 --> 00:09:36,919 Second? 159 00:09:36,919 --> 00:09:38,679 Second by Charlie. 160 00:09:38,679 --> 00:09:40,639 Any discussion? 161 00:09:40,639 --> 00:09:42,000 All in favor say aye. 162 00:09:42,000 --> 00:09:42,600 Aye. 163 00:09:42,600 --> 00:09:43,200 Any opposed? 164 00:09:43,200 --> 00:09:45,120 Same sign. 165 00:09:45,120 --> 00:09:48,159 OK, motion carries. 166 00:09:48,159 --> 00:09:52,759 And item E, solid waste. 167 00:09:52,759 --> 00:09:58,320 And here is the proposed solid waste budget. 168 00:09:58,320 --> 00:10:02,320 About 38, just slightly over 38 million in revenues 169 00:10:02,320 --> 00:10:03,679 projected. 170 00:10:03,679 --> 00:10:10,480 Small planned use of reserves of 512,000. 171 00:10:10,480 --> 00:10:14,279 This kind of relates to a property purchase 172 00:10:14,279 --> 00:10:16,720 between the solid waste fund and DME. 173 00:10:16,720 --> 00:10:21,190 This just transfers that money over for their capital 174 00:10:21,190 --> 00:10:22,320 program. 175 00:10:22,320 --> 00:10:25,799 It came in as an operating revenue due to accounting 176 00:10:25,799 --> 00:10:31,679 rules and expenses 38.5 to 8, which 177 00:10:31,679 --> 00:10:34,399 includes that transfer of the 512. 178 00:10:34,399 --> 00:10:39,000 No rate adjustment proposed here and a continuation 179 00:10:39,000 --> 00:10:40,639 of their capital program also. 180 00:10:43,440 --> 00:10:46,840 OK, any questions on solid waste and recycling? 181 00:10:49,759 --> 00:10:51,679 Hearing none, is there a motion then 182 00:10:51,679 --> 00:10:57,200 to recommend approval of item E? 183 00:10:57,200 --> 00:10:59,080 Move approval. 184 00:10:59,080 --> 00:11:01,679 Motion and second? 185 00:11:01,679 --> 00:11:04,240 Second from Brendan. 186 00:11:04,240 --> 00:11:06,200 Any discussion? 187 00:11:06,200 --> 00:11:07,519 All in favor say aye. 188 00:11:07,519 --> 00:11:08,279 Aye. 189 00:11:08,279 --> 00:11:08,799 Any opposed? 190 00:11:08,799 --> 00:11:10,840 Same sign. 191 00:11:10,840 --> 00:11:11,720 Motion carries. 192 00:11:11,720 --> 00:11:15,120 And I do have one more slide just on next steps. 193 00:11:15,120 --> 00:11:19,000 So you know what's coming in terms of after this. 194 00:11:19,000 --> 00:11:22,000 The proposed rate ordinances, water and wastewater, 195 00:11:22,000 --> 00:11:23,440 there's no rate adjustments. 196 00:11:23,440 --> 00:11:26,200 But there's some minor changes that 197 00:11:26,200 --> 00:11:30,360 need to be made to language in terms of that. 198 00:11:30,360 --> 00:11:31,960 So that will be coming back. 199 00:11:31,960 --> 00:11:34,799 The electric with the reduction in rates 200 00:11:34,799 --> 00:11:37,519 will come back in solid waste, even though there's 201 00:11:37,519 --> 00:11:38,720 no change in rates. 202 00:11:38,720 --> 00:11:42,600 They want to do some clarification on some rates 203 00:11:42,600 --> 00:11:44,799 that were set by the director in the past. 204 00:11:44,799 --> 00:11:48,120 And they want to fully include those in the rate ordinance. 205 00:11:48,120 --> 00:11:52,039 So you will be receiving rate ordinances at the next 206 00:11:52,039 --> 00:11:53,240 meeting. 207 00:11:53,240 --> 00:11:55,399 They'll present those at the next meeting 208 00:11:55,399 --> 00:11:58,639 and then come back on the 24th for consideration 209 00:11:58,639 --> 00:12:01,399 of the board of those rate ordinances. 210 00:12:01,399 --> 00:12:04,279 All of that goes to the city council, 211 00:12:04,279 --> 00:12:07,559 the proposed utility budgets and proposed rate ordinance. 212 00:12:07,559 --> 00:12:10,110 All of that goes to the city council and the proposed 213 00:12:10,110 --> 00:12:10,559 budget 214 00:12:10,559 --> 00:12:12,559 on the 31st. 215 00:12:12,559 --> 00:12:15,960 They go through their process and council's schedule 216 00:12:15,960 --> 00:12:21,480 to consider the budgets for approval on September 19th. 217 00:12:21,480 --> 00:12:23,639 So just wanted to let you know the upcoming schedule 218 00:12:23,639 --> 00:12:26,200 and how it'll be handled after it leaves the board 219 00:12:26,200 --> 00:12:27,840 and goes to the council. 220 00:12:27,840 --> 00:12:28,840 Very good. 221 00:12:28,840 --> 00:12:29,600 That's it. 222 00:12:29,600 --> 00:12:30,279 Thank you, Chuck. 223 00:12:30,279 --> 00:12:31,720 Thank you. 224 00:12:31,720 --> 00:12:37,960 Just want to say that it was a great-- 225 00:12:37,960 --> 00:12:39,720 I thought a great process this year. 226 00:12:39,720 --> 00:12:43,960 I mean, basically the challenge was 227 00:12:43,960 --> 00:12:47,159 without rate increases and finding efficiencies, 228 00:12:47,159 --> 00:12:49,039 I think everybody did a great job. 229 00:12:49,039 --> 00:12:52,120 I'm sure there was a lot of hard work that went into this. 230 00:12:52,120 --> 00:12:55,399 So for anybody who-- this is the first time you've 231 00:12:55,399 --> 00:12:58,159 seen us talk about budget, you missed the last three, 232 00:12:58,159 --> 00:12:59,240 or four, or five meetings. 233 00:12:59,240 --> 00:13:02,039 We've been talking about them for a while. 234 00:13:02,039 --> 00:13:03,799 Just because we didn't have questions today, 235 00:13:03,799 --> 00:13:05,200 they've been answered in the past. 236 00:13:05,200 --> 00:13:09,399 And appreciate y'all's patience working through that. 237 00:13:09,399 --> 00:13:10,080 Very good job. 238 00:13:13,000 --> 00:13:15,360 Item F is ACM update. 239 00:13:15,360 --> 00:13:21,919 And actually, everything on the new business matrix 240 00:13:21,919 --> 00:13:26,559 has been accomplished or completed. 241 00:13:26,559 --> 00:13:27,960 Completed, maybe. 242 00:13:27,960 --> 00:13:28,840 Accomplished, maybe. 243 00:13:28,840 --> 00:13:30,200 That's a strong word, I guess. 244 00:13:30,200 --> 00:13:35,120 But anyway, and now's the time. 245 00:13:35,120 --> 00:13:43,080 If any member has anything for new business action items 246 00:13:43,080 --> 00:13:45,879 going forward, we can put them on the matrix 247 00:13:45,879 --> 00:13:46,799 for future meetings. 248 00:13:52,159 --> 00:13:53,399 OK. 249 00:13:53,399 --> 00:13:56,080 Hearing none, all right. 250 00:13:56,080 --> 00:13:57,480 Very good. 251 00:13:57,480 --> 00:13:58,980 OK. 252 00:14:02,240 --> 00:14:11,399 So concluding items, again, any inquiries or comments 253 00:14:11,399 --> 00:14:13,720 that don't require action from any board members 254 00:14:13,720 --> 00:14:19,159 or don't see any better from the public, so none of that. 255 00:14:19,159 --> 00:14:24,960 So I guess at this time, we'll go at 9.27. 256 00:14:24,960 --> 00:14:28,840 We will go back into closed meeting. 257 00:14:28,840 --> 00:14:33,519 And those who have something to do with the next item, 258 00:14:33,519 --> 00:14:35,679 let's start with item number two.