WEBVTT 00:00:00.000 --> 00:00:20.839 [PAUSE] 00:00:20.839 --> 00:00:23.199 OK, it's 9 o'clock. 00:00:23.199 --> 00:00:27.690 So we're going to call the June 26, 2017 Public Utility 00:00:27.690 --> 00:00:29.239 Board 00:00:29.239 --> 00:00:30.839 meeting to order. 00:00:30.839 --> 00:00:37.880 And first we have on the agenda is our closed meeting, 00:00:37.880 --> 00:00:41.840 the open meeting at 914. 00:00:41.840 --> 00:00:48.200 And on the regular meeting items, 00:00:48.200 --> 00:00:50.640 items for individual consideration, 00:00:50.640 --> 00:00:54.840 first item we have are the Public Utility Board 00:00:54.840 --> 00:00:58.280 meeting of June 12, 2017. 00:00:58.280 --> 00:01:01.159 These minutes have been distributed in advance. 00:01:01.159 --> 00:01:05.680 Are there any comments, changes, corrections 00:01:05.680 --> 00:01:06.799 from any of the members? 00:01:06.799 --> 00:01:08.599 None? 00:01:08.599 --> 00:01:11.040 Seeing none, then those minutes will stand 00:01:11.040 --> 00:01:14.079 approved as submitted. 00:01:14.079 --> 00:01:19.579 Item B is consider recommending approval of the DME fiscal 00:01:19.579 --> 00:01:19.760 year 00:01:19.760 --> 00:01:23.400 2017-2018 operating and capital budget. 00:01:23.400 --> 00:01:24.200 Dr. Springer. 00:01:27.680 --> 00:01:30.480 Thank you, Chair Robinson. 00:01:30.480 --> 00:01:36.840 I've just got brief slides for each of the budgets. 00:01:36.840 --> 00:01:43.439 And I do have one extra slide in terms of the DME 00:01:43.439 --> 00:01:44.719 that I'll go over. 00:01:44.719 --> 00:01:46.879 I think it was something that the board had asked for, 00:01:46.879 --> 00:01:49.799 another comparison of rates. 00:01:49.799 --> 00:01:52.959 So this is the five-year forecast. 00:01:52.959 --> 00:01:57.359 But what the board is considering is the proposed 2018 00:01:57.359 --> 00:01:58.159 budget. 00:01:58.159 --> 00:02:01.840 You can see total revenues with planned use of reserves 00:02:01.840 --> 00:02:04.000 at about $7.5 million. 00:02:04.000 --> 00:02:07.519 So we have revenues of about $173.7, 00:02:07.519 --> 00:02:13.080 use of reserves of about $7.5 million for $181 million, 00:02:13.080 --> 00:02:17.000 and then $181 million in expenditures. 00:02:17.000 --> 00:02:20.479 The proposed budget has a slight rate decrease 00:02:20.479 --> 00:02:24.400 of 1% across the customer classes. 00:02:27.360 --> 00:02:29.560 And let me go to this slide, too. 00:02:29.560 --> 00:02:35.840 This is a comparison of DME's current rates in 2017 00:02:35.840 --> 00:02:40.080 and what they will be within this proposed five-year, where 00:02:40.080 --> 00:02:44.069 we're taking rates down over the five-year period in 00:02:44.069 --> 00:02:44.840 comparison 00:02:44.840 --> 00:02:47.080 to some of the other cities. 00:02:47.080 --> 00:02:52.800 You can see Georgetown, San Antonio, Austin, Brownsville, 00:02:52.800 --> 00:02:56.759 as well as some of the co-ops, co-serve is in there. 00:02:59.520 --> 00:03:05.319 And you can see in green is the other members that 00:03:05.319 --> 00:03:10.020 are in with the power plant, Bryant, Greenville, and Gar 00:03:10.020 --> 00:03:11.680 land. 00:03:11.680 --> 00:03:14.960 And with that, we'll take any questions regarding 00:03:14.960 --> 00:03:17.520 DME's proposed budget. 00:03:20.680 --> 00:03:21.180 Questions? 00:03:26.639 --> 00:03:28.680 Speaking of this slide, I like the trend. 00:03:34.080 --> 00:03:35.840 That looks good. 00:03:35.840 --> 00:03:39.000 I appreciate the simplicity of it, too. 00:03:39.000 --> 00:03:40.400 Compared to the other slide. 00:03:40.400 --> 00:03:50.199 Well, I can actually read the names. 00:03:50.199 --> 00:03:53.800 I don't know the program we're on, 00:03:53.800 --> 00:03:59.240 which is the rate reduction and converting to renewables 00:03:59.240 --> 00:04:03.319 and saving money in that manner. 00:04:03.319 --> 00:04:06.560 But who knows what the rest of these are? 00:04:06.560 --> 00:04:09.280 It's good to see the ones taken out 00:04:09.280 --> 00:04:17.399 that are just purely, I guess, the retail side of it. 00:04:17.399 --> 00:04:20.680 The ones you see advertised, free nights and all 00:04:20.680 --> 00:04:21.360 that good stuff. 00:04:21.360 --> 00:04:23.360 So this is a good comparison. 00:04:29.000 --> 00:04:35.439 Any questions on anything else on the-- 00:04:35.439 --> 00:04:39.720 one question I had in the budget is 00:04:39.720 --> 00:04:43.240 there's a pretty good increase on transmission by others. 00:04:45.920 --> 00:05:00.000 It's like 22% or about $1,040,000. 00:05:00.000 --> 00:05:04.439 So one of the programs that's been 00:05:04.439 --> 00:05:06.720 supported by the Public Utility Commission in Texas 00:05:06.720 --> 00:05:10.560 is to continue to build out more transmission system in 00:05:10.560 --> 00:05:10.759 order 00:05:10.759 --> 00:05:13.519 to get the wind and solar power. 00:05:13.519 --> 00:05:17.319 There's 18,000 megawatts of wind currently 00:05:17.319 --> 00:05:21.600 installed in remote parts of Texas 00:05:21.600 --> 00:05:23.879 to build transmission line to get that power to load 00:05:23.879 --> 00:05:24.759 centers. 00:05:24.759 --> 00:05:29.759 There's another 10,000 megawatts planned in the future. 00:05:29.759 --> 00:05:33.160 Put that in comparison, total ERCOT load 00:05:33.160 --> 00:05:35.160 is around 70,000. 00:05:35.160 --> 00:05:39.279 And so to move that much power to continue 00:05:39.279 --> 00:05:45.600 to build transmission just like we are for age and upgrade, 00:05:45.600 --> 00:05:47.160 but also to move that power. 00:05:47.160 --> 00:05:49.879 And so we all share in that cost of that transmission 00:05:49.879 --> 00:05:50.639 as it happens. 00:05:50.639 --> 00:05:51.120 OK. 00:05:51.120 --> 00:05:52.120 Got you. 00:05:52.120 --> 00:05:52.620 Thanks. 00:05:55.759 --> 00:05:59.040 OK, any other questions of the-- 00:05:59.040 --> 00:06:02.560 Chuck, for the DME budget? 00:06:02.560 --> 00:06:09.279 This also includes, of course, a capital improvement plan 00:06:09.279 --> 00:06:12.040 or capital budget for next year as well. 00:06:12.040 --> 00:06:15.480 So if there are no questions, is there a motion then 00:06:15.480 --> 00:06:22.720 to recommend approval of the 2017-18 DME operating 00:06:22.720 --> 00:06:25.839 and capital budget? 00:06:25.839 --> 00:06:26.839 Motion by Barbara. 00:06:26.839 --> 00:06:27.480 Is there a second? 00:06:27.480 --> 00:06:28.240 Second. 00:06:28.240 --> 00:06:30.319 Second by Charlie. 00:06:30.319 --> 00:06:32.800 Any discussion? 00:06:32.800 --> 00:06:33.839 All in favor say aye. 00:06:33.839 --> 00:06:34.519 Aye. 00:06:34.519 --> 00:06:35.079 Any opposed? 00:06:35.079 --> 00:06:36.959 Same sign. 00:06:36.959 --> 00:06:38.160 Thank you. 00:06:38.160 --> 00:06:42.439 Item C. 00:06:42.439 --> 00:06:45.160 This is the water utility budget. 00:06:45.160 --> 00:06:47.480 I've just got the five-year forecast up 00:06:47.480 --> 00:06:54.839 in terms of the operating budget for fiscal year 2018, 47, 00:06:54.839 --> 00:06:55.759 809 00:06:55.759 --> 00:07:02.160 in revenue and expense and no rate adjustment. 00:07:02.160 --> 00:07:04.240 We'll mention we're continuing-- 00:07:04.240 --> 00:07:05.759 we've kind of leveled it out, but we're 00:07:05.759 --> 00:07:09.519 continuing to do the revenue-funded capital 00:07:09.519 --> 00:07:13.720 in terms of at the targets that were set. 00:07:13.720 --> 00:07:16.439 We've been able to level it out because of some of the fund 00:07:16.439 --> 00:07:22.360 balance within the revenue-funded capital 00:07:22.360 --> 00:07:25.519 fund, the capital fund where we place those funds. 00:07:25.519 --> 00:07:30.199 So we've been able to level it out, but that will continue. 00:07:30.199 --> 00:07:32.439 With that, I'll open it up to any questions 00:07:32.439 --> 00:07:33.759 regarding the water fund. 00:07:36.959 --> 00:07:38.319 Questions? 00:07:38.319 --> 00:07:40.439 Anyone? 00:07:40.439 --> 00:07:41.480 No? 00:07:41.480 --> 00:07:49.920 Is there a motion then to approve item C, 2017-18 water 00:07:49.920 --> 00:07:52.480 operating and capital budget? 00:07:52.480 --> 00:07:54.040 So moved. 00:07:54.040 --> 00:07:56.439 Motion? 00:07:56.439 --> 00:07:57.480 Second. 00:07:57.480 --> 00:07:59.439 Any discussion? 00:07:59.439 --> 00:08:01.480 All in favor say aye. 00:08:01.480 --> 00:08:02.000 Any opposed? 00:08:02.000 --> 00:08:04.120 Same sign. 00:08:04.120 --> 00:08:05.199 OK. 00:08:05.199 --> 00:08:08.319 Chuck, you're on the roll. 00:08:08.319 --> 00:08:15.360 This is for the wastewater budget for 2018. 00:08:15.360 --> 00:08:20.600 In terms of this, it's $33.2 million in revenue, 00:08:20.600 --> 00:08:28.319 slight drawdown of $793,034.023 in expenses. 00:08:28.319 --> 00:08:32.320 And part of this drawdown, if you look at 2017, 00:08:32.320 --> 00:08:35.080 we planned to drawdown reserves. 00:08:35.080 --> 00:08:39.879 And that really comes from that one-time cash infusion 00:08:39.879 --> 00:08:40.480 related 00:08:40.480 --> 00:08:42.759 to the refunding of 4.4. 00:08:42.759 --> 00:08:47.679 You can see in the estimate for 2017 00:08:47.679 --> 00:08:50.039 is that we haven't drawn down all those reserves. 00:08:50.039 --> 00:08:54.120 So we're really drawing down a little bit more in 2018 00:08:54.120 --> 00:08:58.960 just the timing in terms of the revenue-funded capital 00:08:58.960 --> 00:09:00.200 and when they needed it. 00:09:00.200 --> 00:09:03.559 So that's really the only difference. 00:09:03.559 --> 00:09:08.840 And again, no recommended rate increase. 00:09:08.840 --> 00:09:12.440 And to continue the capital program as well as the revenue 00:09:12.440 --> 00:09:15.919 funded capital program. 00:09:15.919 --> 00:09:18.919 OK, questions from any member? 00:09:21.039 --> 00:09:26.120 Is there a motion then to recommend approval 00:09:26.120 --> 00:09:30.759 of wastewater fiscal year '17-'18? 00:09:30.759 --> 00:09:35.639 Item number D. Motion by Brendan. 00:09:35.639 --> 00:09:36.919 Second? 00:09:36.919 --> 00:09:38.679 Second by Charlie. 00:09:38.679 --> 00:09:40.639 Any discussion? 00:09:40.639 --> 00:09:42.000 All in favor say aye. 00:09:42.000 --> 00:09:42.600 Aye. 00:09:42.600 --> 00:09:43.200 Any opposed? 00:09:43.200 --> 00:09:45.120 Same sign. 00:09:45.120 --> 00:09:48.159 OK, motion carries. 00:09:48.159 --> 00:09:52.759 And item E, solid waste. 00:09:52.759 --> 00:09:58.320 And here is the proposed solid waste budget. 00:09:58.320 --> 00:10:02.320 About 38, just slightly over 38 million in revenues 00:10:02.320 --> 00:10:03.679 projected. 00:10:03.679 --> 00:10:10.480 Small planned use of reserves of 512,000. 00:10:10.480 --> 00:10:14.279 This kind of relates to a property purchase 00:10:14.279 --> 00:10:16.720 between the solid waste fund and DME. 00:10:16.720 --> 00:10:21.190 This just transfers that money over for their capital 00:10:21.190 --> 00:10:22.320 program. 00:10:22.320 --> 00:10:25.799 It came in as an operating revenue due to accounting 00:10:25.799 --> 00:10:31.679 rules and expenses 38.5 to 8, which 00:10:31.679 --> 00:10:34.399 includes that transfer of the 512. 00:10:34.399 --> 00:10:39.000 No rate adjustment proposed here and a continuation 00:10:39.000 --> 00:10:40.639 of their capital program also. 00:10:43.440 --> 00:10:46.840 OK, any questions on solid waste and recycling? 00:10:49.759 --> 00:10:51.679 Hearing none, is there a motion then 00:10:51.679 --> 00:10:57.200 to recommend approval of item E? 00:10:57.200 --> 00:10:59.080 Move approval. 00:10:59.080 --> 00:11:01.679 Motion and second? 00:11:01.679 --> 00:11:04.240 Second from Brendan. 00:11:04.240 --> 00:11:06.200 Any discussion? 00:11:06.200 --> 00:11:07.519 All in favor say aye. 00:11:07.519 --> 00:11:08.279 Aye. 00:11:08.279 --> 00:11:08.799 Any opposed? 00:11:08.799 --> 00:11:10.840 Same sign. 00:11:10.840 --> 00:11:11.720 Motion carries. 00:11:11.720 --> 00:11:15.120 And I do have one more slide just on next steps. 00:11:15.120 --> 00:11:19.000 So you know what's coming in terms of after this. 00:11:19.000 --> 00:11:22.000 The proposed rate ordinances, water and wastewater, 00:11:22.000 --> 00:11:23.440 there's no rate adjustments. 00:11:23.440 --> 00:11:26.200 But there's some minor changes that 00:11:26.200 --> 00:11:30.360 need to be made to language in terms of that. 00:11:30.360 --> 00:11:31.960 So that will be coming back. 00:11:31.960 --> 00:11:34.799 The electric with the reduction in rates 00:11:34.799 --> 00:11:37.519 will come back in solid waste, even though there's 00:11:37.519 --> 00:11:38.720 no change in rates. 00:11:38.720 --> 00:11:42.600 They want to do some clarification on some rates 00:11:42.600 --> 00:11:44.799 that were set by the director in the past. 00:11:44.799 --> 00:11:48.120 And they want to fully include those in the rate ordinance. 00:11:48.120 --> 00:11:52.039 So you will be receiving rate ordinances at the next 00:11:52.039 --> 00:11:53.240 meeting. 00:11:53.240 --> 00:11:55.399 They'll present those at the next meeting 00:11:55.399 --> 00:11:58.639 and then come back on the 24th for consideration 00:11:58.639 --> 00:12:01.399 of the board of those rate ordinances. 00:12:01.399 --> 00:12:04.279 All of that goes to the city council, 00:12:04.279 --> 00:12:07.559 the proposed utility budgets and proposed rate ordinance. 00:12:07.559 --> 00:12:10.110 All of that goes to the city council and the proposed 00:12:10.110 --> 00:12:10.559 budget 00:12:10.559 --> 00:12:12.559 on the 31st. 00:12:12.559 --> 00:12:15.960 They go through their process and council's schedule 00:12:15.960 --> 00:12:21.480 to consider the budgets for approval on September 19th. 00:12:21.480 --> 00:12:23.639 So just wanted to let you know the upcoming schedule 00:12:23.639 --> 00:12:26.200 and how it'll be handled after it leaves the board 00:12:26.200 --> 00:12:27.840 and goes to the council. 00:12:27.840 --> 00:12:28.840 Very good. 00:12:28.840 --> 00:12:29.600 That's it. 00:12:29.600 --> 00:12:30.279 Thank you, Chuck. 00:12:30.279 --> 00:12:31.720 Thank you. 00:12:31.720 --> 00:12:37.960 Just want to say that it was a great-- 00:12:37.960 --> 00:12:39.720 I thought a great process this year. 00:12:39.720 --> 00:12:43.960 I mean, basically the challenge was 00:12:43.960 --> 00:12:47.159 without rate increases and finding efficiencies, 00:12:47.159 --> 00:12:49.039 I think everybody did a great job. 00:12:49.039 --> 00:12:52.120 I'm sure there was a lot of hard work that went into this. 00:12:52.120 --> 00:12:55.399 So for anybody who-- this is the first time you've 00:12:55.399 --> 00:12:58.159 seen us talk about budget, you missed the last three, 00:12:58.159 --> 00:12:59.240 or four, or five meetings. 00:12:59.240 --> 00:13:02.039 We've been talking about them for a while. 00:13:02.039 --> 00:13:03.799 Just because we didn't have questions today, 00:13:03.799 --> 00:13:05.200 they've been answered in the past. 00:13:05.200 --> 00:13:09.399 And appreciate y'all's patience working through that. 00:13:09.399 --> 00:13:10.080 Very good job. 00:13:13.000 --> 00:13:15.360 Item F is ACM update. 00:13:15.360 --> 00:13:21.919 And actually, everything on the new business matrix 00:13:21.919 --> 00:13:26.559 has been accomplished or completed. 00:13:26.559 --> 00:13:27.960 Completed, maybe. 00:13:27.960 --> 00:13:28.840 Accomplished, maybe. 00:13:28.840 --> 00:13:30.200 That's a strong word, I guess. 00:13:30.200 --> 00:13:35.120 But anyway, and now's the time. 00:13:35.120 --> 00:13:43.080 If any member has anything for new business action items 00:13:43.080 --> 00:13:45.879 going forward, we can put them on the matrix 00:13:45.879 --> 00:13:46.799 for future meetings. 00:13:52.159 --> 00:13:53.399 OK. 00:13:53.399 --> 00:13:56.080 Hearing none, all right. 00:13:56.080 --> 00:13:57.480 Very good. 00:13:57.480 --> 00:13:58.980 OK. 00:14:02.240 --> 00:14:11.399 So concluding items, again, any inquiries or comments 00:14:11.399 --> 00:14:13.720 that don't require action from any board members 00:14:13.720 --> 00:14:19.159 or don't see any better from the public, so none of that. 00:14:19.159 --> 00:14:24.960 So I guess at this time, we'll go at 9.27. 00:14:24.960 --> 00:14:28.840 We will go back into closed meeting. 00:14:28.840 --> 00:14:33.519 And those who have something to do with the next item, 00:14:33.519 --> 00:14:35.679 let's start with item number two.