WEBVTT 00:00:00.000 --> 00:00:01.439 It's 9 o'clock. 00:00:01.439 --> 00:00:06.400 We have a quorum, so we'll go ahead and open the meeting. 00:00:06.400 --> 00:00:09.640 We do have a closed meeting scheduled. 00:00:09.640 --> 00:00:12.039 However, in essence, we do have some folks 00:00:12.039 --> 00:00:15.080 that have presentations in open meeting 00:00:15.080 --> 00:00:16.160 or in the regular meeting. 00:00:16.160 --> 00:00:18.199 So if it's OK with everybody, if we 00:00:18.199 --> 00:00:20.879 can move the closed meeting to the end of the-- 00:00:20.879 --> 00:00:24.579 after the open meeting so we can get folks back in their 00:00:24.579 --> 00:00:24.920 office 00:00:24.920 --> 00:00:26.480 and do all that stuff. 00:00:29.280 --> 00:00:32.039 So with that, we have-- 00:00:32.039 --> 00:00:36.079 in our regular meeting, we have our consent agenda first. 00:00:36.079 --> 00:00:38.719 We have three items on consent agenda. 00:00:38.719 --> 00:00:40.960 Would ask if there's any members of the board 00:00:40.960 --> 00:00:44.880 who would like to pull any of those items 00:00:44.880 --> 00:00:48.719 for individual consideration. 00:00:48.719 --> 00:00:51.799 I would like to pull all three of them. 00:00:51.799 --> 00:00:53.719 OK. 00:00:53.719 --> 00:00:54.679 All right. 00:00:54.679 --> 00:00:55.560 That makes it simple. 00:01:00.280 --> 00:01:01.759 All right, then. 00:01:01.759 --> 00:01:05.000 We will start for individual consideration. 00:01:05.000 --> 00:01:07.239 We'll start with item A, which is 00:01:07.239 --> 00:01:11.200 to consider recommending approval of the 2018 Water 00:01:11.200 --> 00:01:15.200 and Wastewater Impact Fee Update, professional services 00:01:15.200 --> 00:01:19.760 proposal from Kimley-Horne and Associates. 00:01:19.760 --> 00:01:25.040 And I believe PS is there. 00:01:29.920 --> 00:01:33.319 Are there any specific questions that I can answer? 00:01:33.319 --> 00:01:36.640 Oh, I would just like for you to just give just 00:01:36.640 --> 00:01:39.519 a brief overview, just for the thinking of the public 00:01:39.519 --> 00:01:43.280 as the audience, just so the public can know. 00:01:43.280 --> 00:01:44.280 OK. 00:01:44.280 --> 00:01:46.439 It seems fairly self-explanatory to me. 00:01:50.319 --> 00:01:50.319 We started the impact fees for water wastewater back in 00:01:50.319 --> 00:01:55.840 1998. 00:01:55.840 --> 00:02:01.120 And by state law, we have to do an update study every five 00:02:01.120 --> 00:02:02.480 years. 00:02:02.480 --> 00:02:07.840 So we had a study in 2003, 2008, 2013. 00:02:07.840 --> 00:02:10.039 And this is for the 2018 now. 00:02:10.039 --> 00:02:13.319 Because it takes a certain amount of time. 00:02:13.319 --> 00:02:15.400 So we started the process a little bit early 00:02:15.400 --> 00:02:18.439 because we had to go through a public hearing process, 00:02:18.439 --> 00:02:20.979 capital improvement advisory committee, and then the 00:02:20.979 --> 00:02:22.520 council. 00:02:22.520 --> 00:02:24.400 So there's a certain amount of time it takes. 00:02:24.400 --> 00:02:28.000 So sometime we anticipate in June or so 00:02:28.000 --> 00:02:31.680 we will have the impact fees again updated and in place 00:02:31.680 --> 00:02:33.800 and would have been approved at that time. 00:02:33.800 --> 00:02:36.479 Why do we have impact fees? 00:02:36.479 --> 00:02:40.599 It is really growth paying for growth. 00:02:40.599 --> 00:02:46.520 What we do is we look at what is the additional capacity 00:02:46.520 --> 00:02:51.039 that we need to accommodate growth in the future. 00:02:51.039 --> 00:02:53.639 So there is a cost to that. 00:02:53.639 --> 00:02:58.000 The cost is in building larger pipes, larger pump stations, 00:02:58.000 --> 00:03:00.680 larger waste treatment plants, wastewater and water 00:03:00.680 --> 00:03:01.039 treatment 00:03:01.039 --> 00:03:01.879 plants. 00:03:01.879 --> 00:03:04.120 So there's a cost involved in it. 00:03:04.120 --> 00:03:07.319 So state law describes a method. 00:03:07.319 --> 00:03:10.199 And we'll use that method to assess 00:03:10.199 --> 00:03:14.310 what is the cost for a single family equivalent, if you 00:03:14.310 --> 00:03:14.719 will. 00:03:14.719 --> 00:03:17.319 And then that is what we charge. 00:03:17.319 --> 00:03:18.439 The new development. 00:03:18.439 --> 00:03:21.550 It is not assessed to existing homes, only to new 00:03:21.550 --> 00:03:22.159 development 00:03:22.159 --> 00:03:24.280 that comes out. 00:03:24.280 --> 00:03:25.680 So that is the essence. 00:03:25.680 --> 00:03:28.039 That's what impact fees are. 00:03:28.039 --> 00:03:32.960 So we got our RFQ done through the Purchasing Department. 00:03:32.960 --> 00:03:36.439 And we had five consulting companies 00:03:36.439 --> 00:03:39.599 that sent their RFQs. 00:03:39.599 --> 00:03:41.120 We evaluated them. 00:03:41.120 --> 00:03:44.360 Kimley-Horn was ranked number one. 00:03:44.360 --> 00:03:47.479 And we have a very good proposal. 00:03:47.479 --> 00:03:51.319 And the fees that we got look pretty reasonable. 00:03:51.319 --> 00:03:54.879 So we are happy to bring it to you for approval. 00:03:54.879 --> 00:03:55.599 Thank you. 00:03:55.599 --> 00:03:59.080 Is this a consulting group that the city 00:03:59.080 --> 00:04:00.759 has worked with in the past? 00:04:00.759 --> 00:04:01.400 Yes, they have. 00:04:01.400 --> 00:04:04.199 Actually, they did the road impact fees. 00:04:04.199 --> 00:04:06.680 I was involved in that. 00:04:06.680 --> 00:04:09.360 That went into effect last year. 00:04:09.360 --> 00:04:11.960 And they did a very good job on the road impact fees, 00:04:11.960 --> 00:04:13.479 above and beyond. 00:04:13.479 --> 00:04:14.039 Excellent. 00:04:14.039 --> 00:04:15.120 Excellent. 00:04:15.120 --> 00:04:18.319 So this is a special skill set. 00:04:18.319 --> 00:04:20.759 It seems to me this is a special skill set 00:04:20.759 --> 00:04:23.920 that we would need to contract out for, 00:04:23.920 --> 00:04:25.040 rather than having this to-- 00:04:25.040 --> 00:04:28.920 Yes, it requires planning effort on their part, 00:04:28.920 --> 00:04:33.399 growth scenarios for what is the growth in the city, 00:04:33.399 --> 00:04:37.240 engineering, evaluation, and then the cost evaluation. 00:04:37.240 --> 00:04:37.959 Yes. 00:04:37.959 --> 00:04:38.600 OK, yes. 00:04:38.600 --> 00:04:39.100 Thank you. 00:04:39.100 --> 00:04:44.040 So this seems like a good return on investment to me, 00:04:44.040 --> 00:04:46.720 in the sense that if we get somebody to really do this 00:04:46.720 --> 00:04:48.480 right, we spend-- 00:04:48.480 --> 00:04:49.480 I think it was-- 00:04:49.480 --> 00:04:50.800 It's a little over $91,000. 00:04:50.800 --> 00:04:53.000 Yeah, around $90,000. 00:04:53.000 --> 00:04:58.439 But we end up getting back a lot in terms of impact fees. 00:04:58.439 --> 00:05:00.839 And also, the $91,000 we spend actually 00:05:00.839 --> 00:05:03.560 goes back into the charge we will assess. 00:05:03.560 --> 00:05:06.399 Whatever cost we have, we put back at the cost. 00:05:06.399 --> 00:05:07.519 Yes. 00:05:07.519 --> 00:05:09.319 OK, well, thank you very much. 00:05:09.319 --> 00:05:10.240 That sounds great. 00:05:10.240 --> 00:05:15.040 Yes, is this the third party methodology that's 00:05:15.040 --> 00:05:16.399 prescribed by state law? 00:05:16.399 --> 00:05:16.920 Is that correct? 00:05:16.920 --> 00:05:17.439 Yes, sir. 00:05:17.439 --> 00:05:18.019 OK. 00:05:18.019 --> 00:05:23.959 So it's really a requirement in addition to being a good 00:05:23.959 --> 00:05:24.199 idea, 00:05:24.199 --> 00:05:25.560 to have a third party look at it. 00:05:25.560 --> 00:05:26.060 Yes, sir. 00:05:26.060 --> 00:05:28.000 Yes. 00:05:28.000 --> 00:05:31.959 That way you get an independent view of what 00:05:31.959 --> 00:05:32.959 we need to charge for. 00:05:32.959 --> 00:05:34.000 Right. 00:05:34.000 --> 00:05:35.079 OK. 00:05:35.079 --> 00:05:37.480 All right, any other questions? 00:05:37.480 --> 00:05:38.959 PS, no? 00:05:38.959 --> 00:05:41.920 Is there a motion then to approve item A? 00:05:41.920 --> 00:05:42.959 Make a motion. 00:05:42.959 --> 00:05:43.600 I motion. 00:05:43.600 --> 00:05:44.100 Motion. 00:05:44.100 --> 00:05:46.120 Second. 00:05:46.120 --> 00:05:47.439 And a second. 00:05:47.439 --> 00:05:51.199 You have to flip a coin, whichever. 00:05:51.199 --> 00:05:55.319 I'll let Kim make that decision. 00:05:55.319 --> 00:05:58.040 We have a motion and a second on item A. 00:05:58.040 --> 00:06:01.040 Or is there any further discussion? 00:06:01.040 --> 00:06:02.720 If not, all in favor say aye. 00:06:02.720 --> 00:06:03.720 Aye. 00:06:03.720 --> 00:06:05.959 Any opposed? 00:06:05.959 --> 00:06:07.480 Motion carries. 00:06:07.480 --> 00:06:10.279 Item B, which is to consider recommending 00:06:10.279 --> 00:06:13.480 approval of a professional services agreement 00:06:13.480 --> 00:06:19.240 with Enterprise Risk Consulting of Santa Fe, New Mexico 00:06:19.240 --> 00:06:22.220 to assist the city in developing a power supply head 00:06:22.220 --> 00:06:22.800 strategy 00:06:22.800 --> 00:06:26.079 and implement a risk management process in an amount 00:06:26.079 --> 00:06:28.079 not to exceed 200,000. 00:06:28.079 --> 00:06:29.920 Brian? 00:06:29.920 --> 00:06:30.439 Morning. 00:06:30.439 --> 00:06:32.439 Brian Langley, Deputy City Manager. 00:06:32.439 --> 00:06:35.199 Did you also want me just to provide some overall comments? 00:06:35.199 --> 00:06:38.360 Or do you have any specific questions? 00:06:38.360 --> 00:06:40.860 For me, anyway, it was just in terms of explaining to the 00:06:40.860 --> 00:06:41.480 public 00:06:41.480 --> 00:06:44.160 their return on investment. 00:06:44.160 --> 00:06:50.879 I know that there's a lot of cynicism about consultants. 00:06:50.879 --> 00:06:55.759 And I think it's a good idea to just explain to the public 00:06:55.759 --> 00:06:56.279 why 00:06:56.279 --> 00:06:59.879 it makes financial sense to spend this money, why 00:06:59.879 --> 00:07:02.800 it's a good investment for us. 00:07:02.800 --> 00:07:04.360 Well, with the board's indulgence, 00:07:04.360 --> 00:07:06.920 I'll talk about items B and C together, 00:07:06.920 --> 00:07:09.839 which is really a companion is the Deloitte study. 00:07:09.839 --> 00:07:13.240 So I'll go through that overview for you. 00:07:13.240 --> 00:07:17.490 So first of all, for Deloitte, which is item C on your 00:07:17.490 --> 00:07:18.120 agenda, 00:07:18.120 --> 00:07:19.720 there are two particular tasks that we're 00:07:19.720 --> 00:07:20.680 asking them to look at. 00:07:20.680 --> 00:07:22.360 And these are the ones that we talked about with you 00:07:22.360 --> 00:07:24.319 at your last meeting that they presented. 00:07:24.319 --> 00:07:27.920 The first would be to look at the 2017 benchmark analysis 00:07:27.920 --> 00:07:31.600 to see what is the right benchmark to manage and measure 00:07:31.600 --> 00:07:34.360 the energy management organization moving forward, 00:07:34.360 --> 00:07:35.959 to look at different methodologies, 00:07:35.959 --> 00:07:38.560 identify the advantages and disadvantages of those, 00:07:38.560 --> 00:07:41.720 and make a recommendation to us of how we measure 00:07:41.720 --> 00:07:43.560 performance going forward. 00:07:43.560 --> 00:07:45.439 And then the second task that they have 00:07:45.439 --> 00:07:50.279 is what they call the EMO capability maturity model 00:07:50.279 --> 00:07:50.959 that they'll look at. 00:07:50.959 --> 00:07:53.120 And basically, just look at the overall governance 00:07:53.120 --> 00:07:55.120 that we have of the EMO. 00:07:55.120 --> 00:07:56.120 What are our policies? 00:07:56.120 --> 00:07:58.000 What are our procedures for that? 00:07:58.000 --> 00:07:59.839 Understand all those activities. 00:07:59.839 --> 00:08:01.879 Try to understand whatever risk we're 00:08:01.879 --> 00:08:04.879 taking on with that operation. 00:08:04.879 --> 00:08:07.279 If there are any process gaps that we have, 00:08:07.279 --> 00:08:08.680 any issues that need to be resolved, 00:08:08.680 --> 00:08:11.029 they'll identify those for us and recommend any 00:08:11.029 --> 00:08:11.639 improvements 00:08:11.639 --> 00:08:13.079 that are needed. 00:08:13.079 --> 00:08:15.240 And so the companion to that is enterprise risk, 00:08:15.240 --> 00:08:18.000 is once we have that recommendation from Deloitte 00:08:18.000 --> 00:08:20.920 and the issues that have been identified, 00:08:20.920 --> 00:08:22.519 they'll review those for us and give us 00:08:22.519 --> 00:08:24.160 a practical application of how do they 00:08:24.160 --> 00:08:26.160 think we can actually close those gaps. 00:08:26.160 --> 00:08:27.720 What are the recommendations that they 00:08:27.720 --> 00:08:32.059 would have for us to implement the recommendations from Del 00:08:32.059 --> 00:08:32.840 oitte 00:08:32.840 --> 00:08:35.039 and help us revise the governance structure as needed. 00:08:35.039 --> 00:08:36.879 So as you may recall, we have a front office, 00:08:36.879 --> 00:08:39.720 a middle office, and a back office for the EMO. 00:08:39.720 --> 00:08:41.399 We have some policies that are in place. 00:08:41.399 --> 00:08:43.720 What would that need to look like if there are any process 00:08:43.720 --> 00:08:47.320 gaps, if any are identified by Deloitte. 00:08:47.320 --> 00:08:49.120 And then the second component of their work 00:08:49.120 --> 00:08:51.960 is to look at our power supply issues 00:08:51.960 --> 00:08:53.240 that we've been talking about. 00:08:53.240 --> 00:08:56.179 So looking at how do we take on more renewables going 00:08:56.179 --> 00:08:56.960 forward? 00:08:56.960 --> 00:08:59.679 What's the right mixture of those going forward? 00:08:59.679 --> 00:09:02.639 How do we develop a hedging strategy for that? 00:09:02.639 --> 00:09:04.679 How do we use the deck for that? 00:09:04.679 --> 00:09:07.799 And how do we build a financial pro forma going forward 00:09:07.799 --> 00:09:10.679 that takes into account all those different elements? 00:09:10.679 --> 00:09:12.960 And we'll bring that back through the board and the city 00:09:12.960 --> 00:09:13.840 council. 00:09:13.840 --> 00:09:17.200 And they're looking to come back in October. 00:09:17.200 --> 00:09:19.720 Their work is due to us for their first phase of the work, 00:09:19.720 --> 00:09:22.159 what we've already contracted with them on October 16. 00:09:22.159 --> 00:09:24.519 And we hope to be back to you on October 23 00:09:24.519 --> 00:09:27.279 to have that discussion. 00:09:27.279 --> 00:09:31.389 So in terms of cost, Deloitte is, for an amount not to 00:09:31.389 --> 00:09:31.399 exceed, 00:09:31.399 --> 00:09:35.440 $145,000, combined with what we've already spent with them, 00:09:35.440 --> 00:09:38.159 that would be about $231,000. 00:09:38.159 --> 00:09:40.679 Task one is the benchmark analysis that we mentioned. 00:09:40.679 --> 00:09:42.120 It's about $35,000. 00:09:42.120 --> 00:09:46.000 The EMO maturity assessment is $110,000. 00:09:46.000 --> 00:09:48.919 We expect both of these tasks to be completed 00:09:48.919 --> 00:09:51.279 by the first week of December and have a report available 00:09:51.279 --> 00:09:51.840 for you 00:09:51.840 --> 00:09:53.960 to come back and talk through. 00:09:53.960 --> 00:09:56.639 And that will help us, again, better understand 00:09:56.639 --> 00:10:00.320 the operations, the risk, how to measure success for EMO, 00:10:00.320 --> 00:10:02.320 and develop appropriate strategies 00:10:02.320 --> 00:10:04.360 to manage that operation if any improvements are 00:10:04.360 --> 00:10:06.480 needed to be made. 00:10:06.480 --> 00:10:08.039 So for enterprise risk consulting, 00:10:08.039 --> 00:10:10.519 it's for an amount not to exceed $200,000. 00:10:10.519 --> 00:10:12.879 That would be a total of $299,000 00:10:12.879 --> 00:10:15.159 with our existing scope of work that we've already 00:10:15.159 --> 00:10:16.639 performed with them. 00:10:16.639 --> 00:10:19.320 We do think that there's a range of costs here that we have 00:10:19.320 --> 00:10:19.440 . 00:10:19.440 --> 00:10:22.639 It's about $135,000 to $182,000 plus some travel-related 00:10:22.639 --> 00:10:23.639 expenses. 00:10:23.639 --> 00:10:25.399 The reason for that range is we really 00:10:25.399 --> 00:10:27.600 don't know what we're going to find out of the Deloitte 00:10:27.600 --> 00:10:28.080 study, 00:10:28.080 --> 00:10:30.759 what kind of improvements might need to be made, 00:10:30.759 --> 00:10:33.879 what's the depth of those improvements perhaps. 00:10:33.879 --> 00:10:37.200 So that will be known once we have the Deloitte report. 00:10:37.200 --> 00:10:41.370 But we expect the EMO portion of the findings and 00:10:41.370 --> 00:10:42.159 recommendations 00:10:42.159 --> 00:10:44.759 to come forward in the spring of 2018. 00:10:44.759 --> 00:10:47.600 And the rest of the work will be done throughout the year 00:10:47.600 --> 00:10:50.200 and delivered no later than the end of September. 00:10:50.200 --> 00:10:52.639 And the reason for that is we have the debt coming online 00:10:52.639 --> 00:10:53.159 next year. 00:10:53.159 --> 00:10:56.000 And so how to manage that properly 00:10:56.000 --> 00:10:58.120 will be determined through that process. 00:10:58.120 --> 00:11:00.799 We have some renewable RFPs that are on the street 00:11:00.799 --> 00:11:02.000 that we'll be working through. 00:11:02.000 --> 00:11:04.320 And so that will take a little bit more time. 00:11:04.320 --> 00:11:06.000 But we'll certainly get updates for them 00:11:06.000 --> 00:11:09.240 and bring that back to you as we get up. 00:11:09.240 --> 00:11:12.559 So those are my overall comments for those two items. 00:11:12.559 --> 00:11:14.919 I'd be happy to answer any specific questions that you 00:11:14.919 --> 00:11:16.799 might have. 00:11:16.799 --> 00:11:17.320 Questions? 00:11:24.440 --> 00:11:28.840 Has Enterprise been asked to factor in a timeline 00:11:28.840 --> 00:11:32.919 for the phasing out of the gas plant? 00:11:32.919 --> 00:11:36.480 No, that's going to be a part of our power portfolio. 00:11:36.480 --> 00:11:37.879 And so they've been asked to look 00:11:37.879 --> 00:11:42.009 at how to best utilize that and how to best maximize that 00:11:42.009 --> 00:11:42.559 use. 00:11:42.559 --> 00:11:45.279 OK, so that comes from us. 00:11:45.279 --> 00:11:46.240 Is that what you're saying? 00:11:46.240 --> 00:11:48.440 We give that to them and then they figure out? 00:11:48.440 --> 00:11:50.440 Sure, it's an asset that we have, 00:11:50.440 --> 00:11:52.759 as well as some of the other contracts, power supply 00:11:52.759 --> 00:11:56.240 contracts that we have in place that are known elements 00:11:56.240 --> 00:11:57.279 of our power supply. 00:11:57.279 --> 00:11:59.000 And so then the question for Enterprise 00:11:59.000 --> 00:12:03.080 is how best to utilize those and add in more power supply 00:12:03.080 --> 00:12:04.159 options over time. 00:12:04.159 --> 00:12:10.600 OK, and they asked to consider how storage and distributed 00:12:10.600 --> 00:12:12.320 generation-- 00:12:12.320 --> 00:12:13.399 we're working to that picture. 00:12:13.399 --> 00:12:15.799 I think they addressed the storage question 00:12:15.799 --> 00:12:17.279 at the last council meeting and just 00:12:17.279 --> 00:12:20.519 didn't feel like it was a viable alternative at this point. 00:12:20.519 --> 00:12:23.200 Although in the next few years it could be viable, 00:12:23.200 --> 00:12:24.559 but at this point they didn't feel 00:12:24.559 --> 00:12:27.200 like that was a viable option. 00:12:27.200 --> 00:12:28.039 OK, thanks. 00:12:28.039 --> 00:12:30.519 Yeah, I was really impressed with them. 00:12:30.519 --> 00:12:31.519 I think they're terrific. 00:12:31.519 --> 00:12:36.360 That was the one thing that I'm skeptical about. 00:12:36.360 --> 00:12:41.919 It seems to me that storage has gotten really good, 00:12:41.919 --> 00:12:45.360 both utility scale and-- 00:12:45.360 --> 00:12:46.639 Well, I can certainly-- 00:12:46.639 --> 00:12:48.480 if that's something the board's interested in, 00:12:48.480 --> 00:12:50.679 I can certainly ask them to come back and explore that 00:12:50.679 --> 00:12:51.120 further 00:12:51.120 --> 00:12:52.960 at their next opportunity when they're 00:12:52.960 --> 00:12:54.960 going to come back and present to you in October. 00:12:54.960 --> 00:12:57.000 We can certainly have them add some information 00:12:57.000 --> 00:12:58.320 to address that for you. 00:12:58.320 --> 00:13:00.840 If I could, I think the initial scope here 00:13:00.840 --> 00:13:05.519 is really to put something in writing that illustrates 00:13:05.519 --> 00:13:07.639 kind of where we're going, what our strategies are 00:13:07.639 --> 00:13:10.639 for renewables, something we can go back and visit each 00:13:10.639 --> 00:13:11.320 year, 00:13:11.320 --> 00:13:13.519 continue to refine. 00:13:13.519 --> 00:13:15.679 The comment that was made about storage the other day 00:13:15.679 --> 00:13:18.279 at the city councils is just not quite there yet. 00:13:18.279 --> 00:13:21.080 But in three, five, 10 years, it very well may be here. 00:13:21.080 --> 00:13:26.960 So we're viewing this issue from the scope from Enterprise 00:13:26.960 --> 00:13:27.200 Risk 00:13:27.200 --> 00:13:29.159 as something that's kind of a living document. 00:13:29.159 --> 00:13:32.120 And each year or two, we can see how we're doing, 00:13:32.120 --> 00:13:33.320 how the market's changed. 00:13:33.320 --> 00:13:37.440 But it's vetted very publicly with all of your input 00:13:37.440 --> 00:13:39.240 and the city council's input. 00:13:39.240 --> 00:13:42.039 And as the market changes, we can also 00:13:42.039 --> 00:13:43.720 change and adapt the plan. 00:13:43.720 --> 00:13:48.059 So what's important is getting this first scope 00:13:48.059 --> 00:13:51.080 underway to take a look at how the renewable market changed 00:13:51.080 --> 00:13:51.320 , 00:13:51.320 --> 00:13:53.600 how does that change, how we operate the deck, 00:13:53.600 --> 00:13:55.440 and for all of you to be involved in that policy 00:13:55.440 --> 00:13:56.200 discussion. 00:13:56.200 --> 00:13:58.679 And then you'll make that recommendation to council. 00:13:58.679 --> 00:14:00.440 Things two or three years from now 00:14:00.440 --> 00:14:02.279 are going to be different than they are today. 00:14:02.279 --> 00:14:04.360 But at least we've got a document that illustrates 00:14:04.360 --> 00:14:06.840 our thinking at the time, something we can measure, 00:14:06.840 --> 00:14:10.000 something we can continually improve upon and adapt 00:14:10.000 --> 00:14:11.480 as the market adapts. 00:14:11.480 --> 00:14:14.240 And then in terms of the DOIT study, 00:14:14.240 --> 00:14:16.240 obviously moving forward and agreeing 00:14:16.240 --> 00:14:19.039 to how we're going to measure success, 00:14:19.039 --> 00:14:21.360 the governance structure of the EMO 00:14:21.360 --> 00:14:24.370 is important because of the risk that's going through there 00:14:24.370 --> 00:14:24.399 . 00:14:24.399 --> 00:14:26.440 It is something that the city council was 00:14:26.440 --> 00:14:27.679 very interested in as well. 00:14:27.679 --> 00:14:30.039 So these are really documents that everything's 00:14:30.039 --> 00:14:31.840 in writing, our thought processes, 00:14:31.840 --> 00:14:34.000 and they will change over time. 00:14:34.000 --> 00:14:36.759 In terms of decommissioning the gas plant, 00:14:36.759 --> 00:14:39.240 I don't think that's a realistic conversation to have yet, 00:14:39.240 --> 00:14:41.919 because we just don't know where the market's going to go. 00:14:41.919 --> 00:14:47.080 A lot of the utilities and the renewables, the gas 00:14:47.080 --> 00:14:47.440 contracts 00:14:47.440 --> 00:14:50.000 we're looking at, you can only contract out 00:14:50.000 --> 00:14:53.120 in a responsible fashion probably three to five years 00:14:53.120 --> 00:14:55.389 to really control your costs and make sure that we're 00:14:55.389 --> 00:14:55.639 always 00:14:55.639 --> 00:14:56.519 in a good position. 00:14:56.519 --> 00:14:59.480 But that's not to say that in five years, 00:14:59.480 --> 00:15:01.200 things are looking very different now, 00:15:01.200 --> 00:15:03.399 and we've got a totally different strategy in place. 00:15:03.399 --> 00:15:05.879 But we wanted to make sure that we 00:15:05.879 --> 00:15:08.480 had something that was vetted from everyone first 00:15:08.480 --> 00:15:12.610 and that we could all look at one set of facts moving 00:15:12.610 --> 00:15:13.000 forward. 00:15:13.000 --> 00:15:14.720 And that's the benefit of this. 00:15:14.720 --> 00:15:15.399 Oh, yes. 00:15:15.399 --> 00:15:15.919 Yeah. 00:15:15.919 --> 00:15:18.679 And I'm convinced of the benefit of it. 00:15:18.679 --> 00:15:21.720 I just know that there are members of the public that 00:15:21.720 --> 00:15:26.600 would appreciate an explanation. 00:15:26.600 --> 00:15:29.759 It seems to me that the coal plant has not 00:15:29.759 --> 00:15:36.759 been factored in also by Enterprise, 00:15:36.759 --> 00:15:39.279 or maybe we just haven't been informed of it. 00:15:39.279 --> 00:15:45.759 That is, it seems that the coal plant is still producing. 00:15:45.759 --> 00:15:50.720 And have they been asked to look into how 00:15:50.720 --> 00:15:55.279 that factors into our package? 00:15:55.279 --> 00:15:57.820 Sure, we'll certainly bring that back to you as part of 00:15:57.820 --> 00:15:58.039 that, 00:15:58.039 --> 00:16:00.639 as part of the resource plan, to see all the assets 00:16:00.639 --> 00:16:03.480 that we have, what's the best way to utilize those assets 00:16:03.480 --> 00:16:04.480 at the lowest cost. 00:16:04.480 --> 00:16:06.960 And so that will be a component of that discussion. 00:16:06.960 --> 00:16:07.480 Excellent. 00:16:07.480 --> 00:16:08.799 Thank you. 00:16:08.799 --> 00:16:14.440 I think I read, or maybe it was from the last preliminary 00:16:14.440 --> 00:16:14.519 report 00:16:14.519 --> 00:16:20.279 they gave, was they were going to factor in some summer 00:16:20.279 --> 00:16:20.519 peak 00:16:20.519 --> 00:16:26.320 time, peak demand, seasonal operation of coal. 00:16:26.320 --> 00:16:28.480 I mean, that may or may not where it ends up, 00:16:28.480 --> 00:16:32.360 but at least they're looking at it that way. 00:16:32.360 --> 00:16:35.139 So I just want to make sure I've got the timing on 00:16:35.139 --> 00:16:35.679 everything 00:16:35.679 --> 00:16:36.240 correct. 00:16:36.240 --> 00:16:40.480 So Deloitte will deliver their report in December. 00:16:40.480 --> 00:16:42.200 Both reports, right? 00:16:42.200 --> 00:16:44.799 Yes, sir, for task one and two. 00:16:44.799 --> 00:16:52.200 And then Enterprise will begin in October. 00:16:52.200 --> 00:16:54.600 I'm assuming they're pretty confident in their final report 00:16:54.600 --> 00:16:55.679 we receive on the 16th. 00:16:55.679 --> 00:16:58.879 It's not going to differ too much from what they told us 00:16:58.879 --> 00:16:59.720 two weeks ago. 00:16:59.720 --> 00:17:03.480 I think those are certainly the preliminary findings 00:17:03.480 --> 00:17:05.200 at this point, but I would expect those 00:17:05.200 --> 00:17:09.319 to be on the 23rd, a little bit more detailed findings 00:17:09.319 --> 00:17:11.599 and detailed presentation of how they got there 00:17:11.599 --> 00:17:14.119 and what their final recommendations are. 00:17:14.119 --> 00:17:15.519 But that won't be for these items. 00:17:15.519 --> 00:17:17.200 That will be in the spring for these items 00:17:17.200 --> 00:17:19.119 that are here on this contract. 00:17:19.119 --> 00:17:22.519 And then one last question. 00:17:22.519 --> 00:17:26.160 So the report from Enterprise is expected 00:17:26.160 --> 00:17:30.759 to be delivered in the spring on the MO and then September 00:17:30.759 --> 00:17:35.519 for the other item. 00:17:35.519 --> 00:17:39.720 So do we have-- because they talked about now's the time, 00:17:39.720 --> 00:17:42.960 if you're going to do renewable contracts, 00:17:42.960 --> 00:17:44.440 now's the time to do it. 00:17:44.440 --> 00:17:46.759 I don't know if that makes sure that-- 00:17:46.759 --> 00:17:49.740 I guess I just want to ask a question I don't want to 00:17:49.740 --> 00:17:50.160 assume, 00:17:50.160 --> 00:17:53.000 but I'm assuming that window will still be open, 00:17:53.000 --> 00:17:54.440 in their opinion, by that time. 00:17:54.440 --> 00:17:57.880 Yes, sir, we actually have an RFP on the street right now 00:17:57.880 --> 00:17:59.000 for renewables. 00:17:59.000 --> 00:18:01.380 We're asking the marketplace to give us some options for 00:18:01.380 --> 00:18:01.640 that. 00:18:01.640 --> 00:18:04.480 They're going to help us evaluate what those options are. 00:18:04.480 --> 00:18:06.319 And as they're developing that resource plan, 00:18:06.319 --> 00:18:08.519 we can come back with contracts for potentially more 00:18:08.519 --> 00:18:10.440 renewables that will match up with that. 00:18:10.440 --> 00:18:12.779 So that's what we think is one of the really good benefits 00:18:12.779 --> 00:18:13.200 here, 00:18:13.200 --> 00:18:15.519 is that they're helping us on the front end 00:18:15.519 --> 00:18:18.680 and actually implement some of that through the process. 00:18:18.680 --> 00:18:21.480 So hopefully we'll have that in the next couple of months. 00:18:21.480 --> 00:18:23.319 We'll have something for you to consider. 00:18:23.319 --> 00:18:24.599 OK. 00:18:24.599 --> 00:18:27.599 And Brian, I know that Daffner does a lot of their own lean 00:18:27.599 --> 00:18:28.599 process review. 00:18:28.599 --> 00:18:30.799 Can you just briefly-- I'm in favor of Deloitte, 00:18:30.799 --> 00:18:33.390 but could you just briefly tell us why you're using Delo 00:18:33.390 --> 00:18:33.559 itte 00:18:33.559 --> 00:18:35.480 rather than doing that? 00:18:35.480 --> 00:18:37.559 We do have a lean program, a lean government program. 00:18:37.559 --> 00:18:39.759 We look at processes. 00:18:39.759 --> 00:18:42.759 My opinion, this is very different than anything else 00:18:42.759 --> 00:18:43.960 that we do around the city. 00:18:43.960 --> 00:18:46.400 And there's some process mapping I think would be helpful. 00:18:46.400 --> 00:18:48.599 But the technical nature of what's going on, 00:18:48.599 --> 00:18:51.119 you really have to have someone who has some experience 00:18:51.119 --> 00:18:53.960 and some technical knowledge to help us understand 00:18:53.960 --> 00:18:55.640 what are the best ways to do this. 00:18:55.640 --> 00:18:57.480 And it's a very small operation, but it 00:18:57.480 --> 00:18:59.359 has a lot of different components to it. 00:18:59.359 --> 00:19:01.599 So that's why we feel like an outside expert would really 00:19:01.599 --> 00:19:03.480 help us in terms of the dollars that 00:19:03.480 --> 00:19:06.079 are going through that operation, that we're managing it 00:19:06.079 --> 00:19:09.119 the best we can. 00:19:09.119 --> 00:19:09.759 OK. 00:19:09.759 --> 00:19:11.200 Any other questions? 00:19:11.200 --> 00:19:13.920 Brian? 00:19:13.920 --> 00:19:14.640 OK. 00:19:14.640 --> 00:19:19.559 So we'll take item B first, which is consider 00:19:19.559 --> 00:19:22.799 recommending approval of a professional services 00:19:22.799 --> 00:19:26.079 agreement with Enterprise Risk Consulting. 00:19:26.079 --> 00:19:28.079 Is there a motion on that item? 00:19:28.079 --> 00:19:29.359 Motion to approve. 00:19:29.359 --> 00:19:30.319 Second. 00:19:30.319 --> 00:19:33.359 We have a motion and a second. 00:19:33.359 --> 00:19:34.480 Any further discussion? 00:19:37.640 --> 00:19:38.400 No. 00:19:38.400 --> 00:19:40.759 If not, all in favor say aye. 00:19:40.759 --> 00:19:41.599 Aye. 00:19:41.599 --> 00:19:42.839 Any opposed? 00:19:42.839 --> 00:19:43.839 Same sign. 00:19:43.839 --> 00:19:45.279 OK. 00:19:45.279 --> 00:19:48.599 Item C is to consider recommending approval 00:19:48.599 --> 00:19:53.359 of a professional services agreement with Deloitte Touche 00:19:53.359 --> 00:19:58.470 to perform fiscal 2017 benchmark as well as a risk 00:19:58.470 --> 00:19:59.039 assessment 00:19:59.039 --> 00:20:04.240 for the EMO not to exceed the amount of $145,000. 00:20:04.240 --> 00:20:06.160 Is there a motion on that item? 00:20:06.160 --> 00:20:08.279 Move approval. 00:20:08.279 --> 00:20:08.799 Second. 00:20:08.799 --> 00:20:09.799 And a second. 00:20:09.799 --> 00:20:11.960 We have a motion and a second. 00:20:11.960 --> 00:20:15.359 Discussion on that? 00:20:15.359 --> 00:20:15.880 No. 00:20:15.880 --> 00:20:18.480 Then all in favor say aye. 00:20:18.480 --> 00:20:19.039 Aye. 00:20:19.039 --> 00:20:19.920 Any opposed? 00:20:19.920 --> 00:20:21.559 Same sign. 00:20:21.559 --> 00:20:22.039 OK. 00:20:22.039 --> 00:20:24.599 Thank you. 00:20:24.599 --> 00:20:28.789 Moving on for individual items for individual consideration 00:20:28.789 --> 00:20:29.079 . 00:20:29.079 --> 00:20:32.630 Item A is to consider approval of the Public Utilities 00:20:32.630 --> 00:20:32.960 Board 00:20:32.960 --> 00:20:38.079 meeting minutes of September 11, 2017. 00:20:38.079 --> 00:20:43.079 These have been distributed prior to. 00:20:43.079 --> 00:20:47.480 Are there any corrections, comments, amendments 00:20:47.480 --> 00:20:50.599 we need to look at? 00:20:50.599 --> 00:20:51.519 No. 00:20:51.519 --> 00:20:54.440 Everything seems OK. 00:20:54.440 --> 00:20:56.960 All right. 00:20:56.960 --> 00:21:01.920 Then those will stand approved as submitted then. 00:21:01.920 --> 00:21:05.200 Item B is the ACM update. 00:21:08.039 --> 00:21:11.720 Board members, I sent through Kim under a separate memo-- 00:21:11.720 --> 00:21:13.000 excuse me, a separate email-- 00:21:13.000 --> 00:21:19.000 a memo that outlined items 3, 4, and 5 of the new business 00:21:19.000 --> 00:21:20.240 matrix. 00:21:20.240 --> 00:21:23.480 And so hopefully that will fulfill those requirements 00:21:23.480 --> 00:21:24.799 unless you have any questions. 00:21:24.799 --> 00:21:27.359 And then items 6, 7, and 8 will be 00:21:27.359 --> 00:21:29.200 able to come back to you either through a memo 00:21:29.200 --> 00:21:33.000 or a subsequent presentation in an upcoming board meeting 00:21:33.000 --> 00:21:34.119 if you so choose. 00:21:34.119 --> 00:21:35.079 So any questions? 00:21:35.079 --> 00:21:38.480 Be happy to answer as best I can. 00:21:38.480 --> 00:21:41.359 Questions? 00:21:41.359 --> 00:21:43.160 I just want to say I was very impressed 00:21:43.160 --> 00:21:48.720 by the numbers of the solar rebate that we're doing here. 00:21:48.720 --> 00:21:54.319 I mean, it's a good problem to have when you have 00:21:54.319 --> 00:21:55.480 more than you can do. 00:21:55.480 --> 00:22:02.480 But at the same time, to look at the number of 41 00:22:02.480 --> 00:22:03.240 residential 00:22:03.240 --> 00:22:06.000 in 2017 so far, and we had to turn people away 00:22:06.000 --> 00:22:08.339 because we knew we were getting close to running out of 00:22:08.339 --> 00:22:08.680 money, 00:22:08.680 --> 00:22:11.839 that's excellent. 00:22:11.839 --> 00:22:14.319 One thing I didn't mention is what we'll do next time 00:22:14.319 --> 00:22:18.470 I'll work with Kim to include this memo along with the 00:22:18.470 --> 00:22:19.119 backup 00:22:19.119 --> 00:22:22.000 materials in your agenda, not to fill the agenda, 00:22:22.000 --> 00:22:24.960 but just so that it's in the minutes 00:22:24.960 --> 00:22:27.519 so that if folks whenever in the public ever want to go 00:22:27.519 --> 00:22:27.799 back 00:22:27.799 --> 00:22:29.519 and look at it, they can. 00:22:29.519 --> 00:22:34.200 They have that information available to them online. 00:22:34.200 --> 00:22:39.839 How will the new Tesla solar roofing fit into this whole 00:22:39.839 --> 00:22:41.960 rebate process? 00:22:44.960 --> 00:22:45.460 Thank you. 00:22:49.559 --> 00:22:51.599 I was hoping my roof was wrecked so I could do it. 00:22:51.599 --> 00:22:54.480 Maybe it wasn't. 00:22:54.480 --> 00:22:58.440 Well, yeah. 00:22:58.440 --> 00:23:00.400 Not a good reason to get a wrecked roof, 00:23:00.400 --> 00:23:01.519 but I guess it's all right. 00:23:04.319 --> 00:23:04.819 OK. 00:23:08.920 --> 00:23:11.529 That's all the individual items we had on the regular 00:23:11.529 --> 00:23:13.119 meeting. 00:23:16.480 --> 00:23:24.759 Any concluding items under section 551.042, 00:23:24.759 --> 00:23:33.000 this is time to request new metrics items or future agenda 00:23:33.000 --> 00:23:36.000 items. 00:23:36.000 --> 00:23:38.279 I'll just say I'd make the comment. 00:23:38.279 --> 00:23:40.400 I hope that at some point once-- 00:23:40.400 --> 00:23:45.119 I know we just had a crew that got back from Florida, 00:23:45.119 --> 00:23:46.599 I guess last week. 00:23:46.599 --> 00:23:49.559 And so I hope at some point we'll 00:23:49.559 --> 00:23:52.519 be able to recognize those folks when they come in. 00:23:52.519 --> 00:23:56.400 Because what they do, leave their families 00:23:56.400 --> 00:23:58.039 and go where they're needed. 00:23:58.039 --> 00:24:02.079 And I know the people in Florida are very appreciative. 00:24:02.079 --> 00:24:04.880 They-- I know the last-- 00:24:04.880 --> 00:24:06.380 I can't remember which one it was, 00:24:06.380 --> 00:24:10.509 but there was one hurricane that they're actually bringing 00:24:10.509 --> 00:24:11.359 them-- 00:24:11.359 --> 00:24:14.960 the citizens were bringing them baked goods, cookies, 00:24:14.960 --> 00:24:18.240 and homemade sandwiches and stuff like that 00:24:18.240 --> 00:24:19.319 while they were out there. 00:24:19.319 --> 00:24:22.000 So that's-- just go to show you what 00:24:22.000 --> 00:24:24.079 that means to people that really are in need. 00:24:24.079 --> 00:24:28.529 So hopefully we can get them in and be recognized at some 00:24:28.529 --> 00:24:29.160 point 00:24:29.160 --> 00:24:30.160 once they get rested up. 00:24:33.079 --> 00:24:40.519 Could I request some website data, some website metrics? 00:24:40.519 --> 00:24:44.559 I'm interested in knowing how many people view 00:24:44.559 --> 00:24:48.640 the stream of our meeting or live. 00:24:48.640 --> 00:24:50.200 I'm interested in how many people 00:24:50.200 --> 00:24:53.599 view it after the live broadcast. 00:24:53.599 --> 00:24:56.920 I know it's posted up there to be viewed later as well. 00:24:56.920 --> 00:25:01.599 I'm also interested in how many people download the agenda, 00:25:01.599 --> 00:25:05.039 review the agenda and the backup items, maybe even 00:25:05.039 --> 00:25:08.480 a metric for prior to the meeting and after the meeting. 00:25:11.559 --> 00:25:13.559 It should be-- that should be pretty easy. 00:25:13.559 --> 00:25:14.119 Yeah. 00:25:14.119 --> 00:25:15.119 Good. 00:25:15.119 --> 00:25:15.680 Good point. 00:25:15.680 --> 00:25:17.400 That would be really interesting to see. 00:25:21.079 --> 00:25:21.680 Thank you. 00:25:21.680 --> 00:25:22.319 Yeah. 00:25:22.319 --> 00:25:23.279 Thanks. 00:25:23.279 --> 00:25:26.359 I had two brief things. 00:25:26.359 --> 00:25:33.319 One is it would be nice, since we keep asking about-- 00:25:33.319 --> 00:25:36.079 and now I have my own timeline made up 00:25:36.079 --> 00:25:42.799 of when we're expecting the consultants to come to us 00:25:42.799 --> 00:25:44.960 and then to counsel with their results. 00:25:44.960 --> 00:25:49.680 It would be nice to have a tentative timeline, 00:25:49.680 --> 00:25:54.039 either posted on the PUB part of the website 00:25:54.039 --> 00:26:01.720 or just added on in the agenda as part of the matrix 00:26:01.720 --> 00:26:03.039 or something like that. 00:26:03.039 --> 00:26:04.640 I'm not quite sure how that could fit in, 00:26:04.640 --> 00:26:06.160 but it would be nice to have something 00:26:06.160 --> 00:26:09.720 that the public could refer to. 00:26:09.720 --> 00:26:10.400 It helps. 00:26:10.400 --> 00:26:11.079 That's fine. 00:26:11.079 --> 00:26:11.599 Yeah. 00:26:11.599 --> 00:26:14.000 To kind of get in your mind, OK, December, we 00:26:14.000 --> 00:26:15.240 know we're going to see this. 00:26:15.240 --> 00:26:16.920 And spring, we'll see this. 00:26:16.920 --> 00:26:17.640 Yeah. 00:26:17.640 --> 00:26:20.279 And people could be made aware that this is tentative, 00:26:20.279 --> 00:26:21.519 that everything is tentative. 00:26:21.519 --> 00:26:25.680 If something comes up, it's subject to change, but that 00:26:25.680 --> 00:26:27.440 helps. 00:26:27.440 --> 00:26:31.279 And the second thing, I would like 00:26:31.279 --> 00:26:35.880 to request for future consideration 00:26:35.880 --> 00:26:41.440 that we consider having all proposed expenditures 00:26:41.440 --> 00:26:49.039 of $50,000 or more as items for individual consideration. 00:26:49.039 --> 00:26:53.720 That was the reason why I asked to pull these three 00:26:53.720 --> 00:26:56.000 from the consent agenda, because all three had 00:26:56.000 --> 00:27:00.519 a price tag over that amount. 00:27:00.519 --> 00:27:03.559 Not just for us, but most importantly, for the public. 00:27:03.559 --> 00:27:06.039 I think it rubs the public the wrong way 00:27:06.039 --> 00:27:09.519 when they see expenditures of such a large amount 00:27:09.519 --> 00:27:11.519 on the consent agenda. 00:27:11.519 --> 00:27:14.200 And I think it does a lot of good for them 00:27:14.200 --> 00:27:18.559 to see that we're doing our due diligence 00:27:18.559 --> 00:27:22.079 and that we're concerned about return on investment. 00:27:22.079 --> 00:27:23.759 I think that'll make a big difference. 00:27:26.839 --> 00:27:28.680 OK. 00:27:28.680 --> 00:27:30.559 Thank you. 00:27:30.559 --> 00:27:32.839 All right, very good. 00:27:32.839 --> 00:27:40.480 So at this time, we will go into the-- 00:27:40.480 --> 00:27:44.640 we'll adjourn the open meeting, first of all. 00:27:44.640 --> 00:27:46.039 I guess we need a motion for that. 00:27:49.559 --> 00:27:52.920 We'll have a motion and a second. 00:27:52.920 --> 00:27:53.960 All in favor say aye. 00:27:53.960 --> 00:27:54.960 Aye. 00:27:54.960 --> 00:27:58.720 And we will go into a closed meeting, 00:27:58.720 --> 00:28:01.920 PUB 17-201, deliberations regarding 00:28:01.920 --> 00:28:05.319 certain public power utilities, competitive matters, 00:28:05.319 --> 00:28:06.880 under--