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May the 7th 2018 we'll call the May 7 2018 public utility

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board meeting to

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order and right away we have a work session so we have a

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few items to go

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over we'll start with item A which is to receive a report

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from staff regarding

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the 2017 reliability indices for the electric distribution

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system and DME's

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actions taken to improve reliability.

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George Morrow DME general manager it's my honor to come

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before you this morning

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to introduce this reliability information about the

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electric system

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and also introduce Jerry Fielder who's our distribution

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system manager who has

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sliced and diced and parsed all this reliability

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information to kind of give

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you and us an idea of how reliable are we reliability being

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extremely important

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these days we're all used to having electricity and when it

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's out you know

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how critical that is and I think we what I've seen my time

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in Denton that we have

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an outstanding reliability here in the city we have very

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few outages and though

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when we do have outages we respond extremely quickly it's

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to me it's been

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amazing our reliability here is 99.99% so so with that I'll

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introduce Jerry and

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let him take it away.

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A little shorter good morning. I appreciate the time this

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morning to kind of visit

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with you guys about the reliability of the distribution

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system before I get

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into it I want to introduce a couple of other members of

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the reliability team

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and that's Brad Watts who is the superintendent of

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operation and

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maintenance and Rowdy Patterson who is the superintendent

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of construction and

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missing today is Sam Bridges who is the superintendent's of

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the substation group.

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All right we're gonna start off with the test questions

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begin with just kind of

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let you know what we look at these are indices that are

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established by IEEE 1366

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which is a standard for electric reliability this was

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established by the

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Institute of Electrical and Electronic Engineers there are

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several different

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factors that we look at these are the common ones we look

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at SATI. SATI is the

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system average interruption duration and that's the total

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duration of an

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interruption for the average customer during a given time

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period and it's

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measured in minutes. KD is the customer average inter

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ruption duration index and

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that's the average amount of time taken to restore service

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and again that is in

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minutes. SAFE is the system average interruption

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frequency index and that's the average number of times that

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a system customer

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experiences an outage during a time period being studied

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and that's just a

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number. A SAY which is the average system availability

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index that's the total

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necessary number of customer hours that service was

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available during the time

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period being studied to the total customer hours demanded

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and is

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calculated using the formula that they've got right there

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this one is

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actually given to us in hours. TMED is a method that if you

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are in area that has

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large and extended interruptions TMED lets you figure out

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what that number is

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and those you can actually take out of your calculations DM

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E has no TMED

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we don't take any of them out and then performance this is

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not IEEE 1366

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this is Jerry Fielder basically what I do is take the SATE

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times the SAFE so I

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take the duration times the frequency multiply them

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together the higher the

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number the worst performer that asset is. Okay to go over

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the baseline for 2017

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the time period that was studied was January 1st 2017 to

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December 31st 2017

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during that time frame we had 950 events the indices were

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calculated on IEEE 1366

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standards for reliability industries and classified based

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on IEEE 1782

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which is another specification that lets us know how the I

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EEE wants these

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things to kind of be classified we go above and beyond on

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classification you

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guys should have a cheat sheet in front of you of all the

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classifications that

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we actually use reliability indices we calculate on the

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system level the

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substation level and on the feeder service levels and

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during that time

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frame we've identified the top five cause and equipment

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codes that were on

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these three different service levels. So for us last year

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as it was in 2016

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squirrels were our nemesis of the 213 animal small animal

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reported incidences

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199 were contributed to squirrels. So just kind of give you

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an idea we're not

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unusual with this thing the APPA had an article squirrels

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other wildlife are the

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most common cause of allergies the survey finds and just

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the quote from this

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thing is saying wildlife near power equipment is the most

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common cause of

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allergies at public power utilities and the failure of

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overhead equipment is the

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second most common cause according to the APPA's latest

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survey you know

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basically what they're saying is since a utility pole is

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similar to a tree

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squirrels frequently climb the poles the heat emitted by

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electric lines can

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attract the squirrel because they like to get that warmth

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from the electric

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line so that's why squirrels love us so much. Now once we

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did the study we

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identify the top five cause codes we identify the top five

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equipment codes

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for 2017 the top five cause codes or number one was animals

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the small animals

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and birds this is your squirrels planned outages

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maintenance and we'll talk a

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little bit more about this why that's so high this time

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maintenance or decay age

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of material that's basically materials just aging out there

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weather associated

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with lightning lightning associated with weather and

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equipment or design

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installation it's a material or equipment failure the

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equipment that we

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identified was no damaged equipment and that kind of goes

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in with the maintenance

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part of it overhead line conductor and devices the line

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transformers the fuses

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associated with the line transformers secondary and

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services and line

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transformers becoming bad we're going to focus mainly on

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the equipment I mean the

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cause codes during this thing because that's what

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everything is really kind of

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tuned to it is eliminating the causes but the equipment

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codes help us

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understand if there's a pattern going on out there that we

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have equipment that's

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failing and it's in the same area or it's the same

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manufacturer helps us

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understand what that's going on right there so what this

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next graph is showing

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you is on the top of it is the combination of all the

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events the

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combination of all the outage time for those 950 events and

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the number of

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customers affected as you can see right there there's when

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you take the top five

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out on the top part of it which for the number of events 65

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4 of the 950 events

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were top five events those are separated out into the

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maintenance material

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equipment failure decay age of equipment lighting and small

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animal or bird the

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same thing can be seen at the amount of cottage time that's

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contributed

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contributed to the top five as well as the customers

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affected that's attributed

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to the top five this is just another way of looking at it

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you can see on a

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monthly basis what the top five spread was based upon how

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much of a

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contributor they were now what I want to point out here in

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October November in

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December you're going to see the maintenance part of it go

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up this is

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when we did a lot of feeder sweeps in a in an area that we

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're going to talk

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about these feeder sweeps were pretty intense they went out

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there and took a

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lot of custody and to do this they had to take the

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customers out of power for a

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short time so that's why when you look at the amount of

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time for maintenance

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that's why it's gone up is because they have to do that

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this is not something

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that we really believe is going to be a continual issue for

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us we just wanted to

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get a lot of things done within that first three months to

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try to eliminate

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as many as possible of the issues or errors that we have in

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a specific area

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I've got on the side over here a lot of the items that were

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put on during the

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sweep if you guys are interested in looking at those or

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asking more about

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those thank you very much we can certainly go about them

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and talk to you

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a little bit more about what each of these items are and

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what their

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contribution is to helping us get more reliable power okay

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so comparison start

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now system growth from the distribution standpoint we only

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grew about 1.25

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percent during the 16 17 time frame again our underground

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miles grew which

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led us to be over 57.91 percent of an underground

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distribution system the

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reliability indices as you can see our safety or frequency

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went down however

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you look at Sadie the durations and Katie customer dur

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ations they went up

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there's a reason for this and the reason is this is the

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first year that we've had

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full implementation of the AMI system into the OMS outage

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management system so

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what that means is in the past the time starts on an outage

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whenever you first

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know about it so if people are at home and they don't know

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that their power is

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out and they get home and they call us then that's when the

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clock starts for

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the amount of time that we're attributing this thing with

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the AMI

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system we know within seconds that a person's out and so

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the AMI system

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reports it in and so that's when our clock starts so that

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means your

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durations are going to be just a little bit longer because

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of that so in other

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words we basically established a new baseline for this year

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so we did a heat

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map analysis of the system using the top five cause codes

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and as you can see the

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north east area is the area that has the most has the it

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seems like it has the

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highest number of cause codes it has the highest number of

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heat equipment codes

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events happening this area we know is an area this is area

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that we concentrated a

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lot of our maintenance activities on this is where those

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proactive going out

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there change putting in the animal protection putting in

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the automatic

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fuses etc etc occurred on that thing to reduce them down we

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haven't had a full

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year of data yet for that but we pretty much believe that

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this has been a very

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positive because the number of phone calls coming in from

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that area has

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reduced drastically so we think we've done some good things

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out there this

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will be one of the things that we look at at the end of the

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year once I have a

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full year of data to say did we actually affect that as

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with most utilities we

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like to compare ourselves to everybody so we won't go over

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every one of these

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unless you want me to but just didn't municipal electric

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from a public power

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power standpoint in national and state of Texas level we

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are better there are

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some utilities out there that have got some numbers that

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are better than ours

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there's some that have got some numbers that are worse than

275
00:11:50,129 --> 00:11:52,360
ours our sister TNPA

276
00:11:52,360 --> 00:11:56,159
cities Garland Bryan and Greenville they don't they don't

277
00:11:56,159 --> 00:11:57,360
claim to go to I triple

278
00:11:57,360 --> 00:12:01,110
e 1366 glass so I can't tell you that they're being lower

279
00:12:01,110 --> 00:12:02,360
than us by so much

280
00:12:02,360 --> 00:12:06,620
is an actual apples to apples type comparison because they

281
00:12:06,620 --> 00:12:07,080
don't go by I

282
00:12:07,080 --> 00:12:14,970
triple e 1366 okay so we look as I said we do a performance

283
00:12:14,970 --> 00:12:16,240
calculation we look

284
00:12:16,240 --> 00:12:20,120
at the substations Denton North last year was the worst

285
00:12:20,120 --> 00:12:21,679
performing substation

286
00:12:21,679 --> 00:12:28,759
its availability was 99.95 percent with the highest rank of

287
00:12:28,759 --> 00:12:29,480
performance last

288
00:12:29,480 --> 00:12:33,110
year it was seven Kings Road which last year was our worst

289
00:12:33,110 --> 00:12:34,240
performing substation

290
00:12:34,240 --> 00:12:37,129
did get some improvement it's now the 15th and we take

291
00:12:37,129 --> 00:12:38,039
these are all the

292
00:12:38,039 --> 00:12:40,960
substations that's on our system so we know from the worst

293
00:12:40,960 --> 00:12:42,279
performing substation

294
00:12:42,279 --> 00:12:45,710
down to the least worst performing substation and we focus

295
00:12:45,710 --> 00:12:46,240
a lot of

296
00:12:46,240 --> 00:12:49,240
attention on what the worst performers are to see if there

297
00:12:49,240 --> 00:12:50,320
's any thing common

298
00:12:50,320 --> 00:12:55,269
in that area that we need to attack or pursue same thing

299
00:12:55,269 --> 00:12:56,960
happens with feeders

300
00:12:56,960 --> 00:13:04,240
so Denton North 212 is our worst performing feeder for 2017

301
00:13:04,240 --> 00:13:05,159
followed by

302
00:13:05,159 --> 00:13:11,289
McKinney 221 Kings Road 222 Locust 221 and Cooper Creek 222

303
00:13:11,289 --> 00:13:12,000
kind of goes down

304
00:13:12,000 --> 00:13:15,639
the top five or ten worst performing feeders is a standard

305
00:13:15,639 --> 00:13:16,720
that the Public

306
00:13:16,720 --> 00:13:19,980
Utility Commission of Texas asks people to look at of

307
00:13:19,980 --> 00:13:21,720
course we're not come

308
00:13:21,720 --> 00:13:25,149
we're not dependent on the PUC of Texas to tell us what we

309
00:13:25,149 --> 00:13:26,240
need to do but we

310
00:13:26,240 --> 00:13:29,009
still make those comparisons for ourselves to see how we're

311
00:13:29,009 --> 00:13:30,080
doing and use

312
00:13:30,080 --> 00:13:35,980
their standards a feeder a feeder you have substation you

313
00:13:35,980 --> 00:13:36,799
have a system level

314
00:13:36,799 --> 00:13:39,970
which is everything that we have out there you have a subst

315
00:13:39,970 --> 00:13:40,879
ation which is the

316
00:13:40,879 --> 00:13:43,779
big assets that you see that are placed around the city

317
00:13:43,779 --> 00:13:44,759
that have the big

318
00:13:44,759 --> 00:13:47,460
transformers in them and everything else and those subst

319
00:13:47,460 --> 00:13:48,639
ations feed feeders

320
00:13:48,639 --> 00:13:51,840
feeders are they the assets that go out and serve the

321
00:13:51,840 --> 00:13:53,399
customer so they're the

322
00:13:53,399 --> 00:13:56,500
big wire the big underground wire that goes out and serves

323
00:13:56,500 --> 00:13:57,620
customers is what a

324
00:13:57,620 --> 00:14:01,509
feeder is so that's the end game for us is to look at that

325
00:14:01,509 --> 00:14:02,559
point and where is

326
00:14:02,559 --> 00:14:07,080
this feeder located is it up in that northwest

327
00:14:09,000 --> 00:14:12,350
several several of them are up there in that area is Denton

328
00:14:12,350 --> 00:14:13,279
North as well as

329
00:14:13,279 --> 00:14:16,100
Kings Row and if you look at that Kings Row has two feeders

330
00:14:16,100 --> 00:14:16,860
that are on the

331
00:14:16,860 --> 00:14:20,539
worst performer and Denton North has two feeders on the

332
00:14:20,539 --> 00:14:22,399
worst performing so yes

333
00:14:22,399 --> 00:14:25,470
those four feeders are up and usually serving that one area

334
00:14:25,470 --> 00:14:26,519
that you see as

335
00:14:26,519 --> 00:14:31,679
worst performing so we do some other looking at this thing

336
00:14:31,679 --> 00:14:32,480
another heat map

337
00:14:32,480 --> 00:14:36,389
that we prepare is using the ten on the ten worst

338
00:14:36,389 --> 00:14:38,360
performing feeders we we

339
00:14:38,360 --> 00:14:41,559
identify the cost codes the top five cost codes and we plot

340
00:14:41,559 --> 00:14:42,480
those out there

341
00:14:42,480 --> 00:14:46,360
on the system as you can see that same area that's

342
00:14:46,360 --> 00:14:48,440
northeast is still pretty

343
00:14:48,440 --> 00:14:51,480
much red but there are other areas within the city that

344
00:14:51,480 --> 00:14:52,559
there is some you

345
00:14:52,559 --> 00:14:56,820
know events that we need to look at and see what the cause

346
00:14:56,820 --> 00:14:58,080
is and then equipment

347
00:14:58,080 --> 00:15:00,779
codes as I said those are all focusing pretty much in the

348
00:15:00,779 --> 00:15:01,759
same area we don't

349
00:15:01,759 --> 00:15:04,379
pay a whole lot of attention for study parts of the

350
00:15:04,379 --> 00:15:05,960
equipment codes that's more

351
00:15:05,960 --> 00:15:08,279
or less for the engineer geek of us to try to figure out so

352
00:15:08,279 --> 00:15:09,080
you know is there

353
00:15:09,080 --> 00:15:12,539
equipment that is failing constantly and if it is is there

354
00:15:12,539 --> 00:15:13,799
a commonality with

355
00:15:13,799 --> 00:15:19,480
that equipment do we need to go replace it all etc etc okay

356
00:15:19,480 --> 00:15:21,340
so 2017 findings the

357
00:15:21,340 --> 00:15:24,049
top five cause and equipment codes were identified as

358
00:15:24,049 --> 00:15:26,480
factors in over 60% of all

359
00:15:26,480 --> 00:15:29,269
the recorded events at the every service level from the

360
00:15:29,269 --> 00:15:30,679
system the substation the

361
00:15:30,679 --> 00:15:34,559
feeder level North Lake substation is the worst performing

362
00:15:34,559 --> 00:15:35,360
substation and

363
00:15:35,360 --> 00:15:37,730
King Joe substation has moved from being the worst

364
00:15:37,730 --> 00:15:39,159
performance but it still has

365
00:15:39,159 --> 00:15:43,070
two of the worst performing feeders in it so what are we

366
00:15:43,070 --> 00:15:44,360
going to do about this

367
00:15:44,360 --> 00:15:48,240
what is DME going to do about this for animal protection

368
00:15:48,240 --> 00:15:49,440
there you're going to

369
00:15:49,440 --> 00:15:51,429
see on this slide these are the actions that were taken if

370
00:15:51,429 --> 00:15:52,320
they're standardized

371
00:15:52,320 --> 00:15:54,919
it means they're now in our construction standards or

372
00:15:54,919 --> 00:15:56,799
design standards if it's

373
00:15:56,799 --> 00:16:01,059
says continuous that means that we do this normally anyway

374
00:16:01,059 --> 00:16:02,200
and then in progress

375
00:16:02,200 --> 00:16:05,490
is something other that is kind of a study thing for us so

376
00:16:05,490 --> 00:16:06,200
for animal

377
00:16:06,200 --> 00:16:10,759
protection we are using rely guard products that's a lot

378
00:16:10,759 --> 00:16:11,399
what you see out

379
00:16:11,399 --> 00:16:14,090
here these are the new products that we're using and Brad

380
00:16:14,090 --> 00:16:15,879
will be able to talk a little bit more about the

381
00:16:15,879 --> 00:16:20,139
advantages of the rely guard products and then later on in

382
00:16:20,139 --> 00:16:22,360
the presentation we

383
00:16:22,360 --> 00:16:24,990
now install animal protection on all of our designs

384
00:16:24,990 --> 00:16:26,279
everything goes out whenever

385
00:16:26,279 --> 00:16:29,100
an engineer or technician does a design he puts animal

386
00:16:29,100 --> 00:16:30,360
protection into the

387
00:16:30,360 --> 00:16:34,299
estimate on that part of it we have used duct plugs instead

388
00:16:34,299 --> 00:16:35,440
of air seal on

389
00:16:35,440 --> 00:16:41,919
polarizers that plugs which are these items air seal is

390
00:16:41,919 --> 00:16:43,000
basically foam that

391
00:16:43,000 --> 00:16:45,320
they would put down on the top of the polarizer and

392
00:16:45,320 --> 00:16:46,639
squirrels didn't have any

393
00:16:46,639 --> 00:16:48,980
issue with chewing down in the bottom of it and then

394
00:16:48,980 --> 00:16:50,159
chewing on the cable and

395
00:16:50,159 --> 00:16:56,340
causing outages they can't chew through metal so we are now

396
00:16:56,340 --> 00:16:59,879
using these in our polarizers

397
00:16:59,879 --> 00:17:02,470
our tree trimming program has been very successful we

398
00:17:02,470 --> 00:17:03,639
continued the tree trimming

399
00:17:03,639 --> 00:17:06,650
program and if we find areas where hot spots are we go

400
00:17:06,650 --> 00:17:08,039
ahead and trim that out

401
00:17:08,039 --> 00:17:11,539
if areas have and we need taller pose we'll certainly put

402
00:17:11,539 --> 00:17:12,680
in taller pose in

403
00:17:12,680 --> 00:17:16,190
those areas and we've even tried different things such as

404
00:17:16,190 --> 00:17:17,000
Fox urine to

405
00:17:17,000 --> 00:17:20,869
try to eliminate squirrels I wasn't very popular with Brad

406
00:17:20,869 --> 00:17:21,960
's crews at the time

407
00:17:21,960 --> 00:17:24,819
when they had to go put it out there it really wasn't that

408
00:17:24,819 --> 00:17:26,880
effective but we tried

409
00:17:26,880 --> 00:17:32,000
it from a maintenance standpoint we've replaced damaged and

410
00:17:32,000 --> 00:17:32,880
missing lightning

411
00:17:32,880 --> 00:17:36,150
arrestors as well as the missing grounds and down guys this

412
00:17:36,150 --> 00:17:37,000
was done pretty

413
00:17:37,000 --> 00:17:40,240
heavily during the feeder sweeps that were performed we are

414
00:17:40,240 --> 00:17:41,039
going to prepare

415
00:17:41,039 --> 00:17:45,299
an RFP for infrared testing and strategic placement of

416
00:17:45,299 --> 00:17:46,359
fault indicators

417
00:17:46,359 --> 00:17:48,559
this is something other for both operations as well as

418
00:17:48,559 --> 00:17:49,200
engineering to

419
00:17:49,200 --> 00:17:52,980
kind of help focus in and narrow in on what causes and what

420
00:17:52,980 --> 00:17:54,799
the area of what

421
00:17:54,799 --> 00:17:59,049
the area that the fault has occurred is where that area is

422
00:17:59,049 --> 00:18:00,000
so it fault current

423
00:18:00,000 --> 00:18:02,660
indicator basically has a light or some sort of signal that

424
00:18:02,660 --> 00:18:03,599
lets the crews know

425
00:18:03,599 --> 00:18:07,200
that down from it it saw the fault and so they know okay

426
00:18:07,200 --> 00:18:08,119
from this point down

427
00:18:08,119 --> 00:18:14,200
we got a look okay decay age of material we are doing

428
00:18:14,200 --> 00:18:15,680
another RFP for a system

429
00:18:15,680 --> 00:18:18,900
wide pole inspection and inventory from the engineering

430
00:18:18,900 --> 00:18:20,240
standpoint we're mostly

431
00:18:20,240 --> 00:18:22,950
wanting to do the pole inspection the pole inspection is

432
00:18:22,950 --> 00:18:24,039
they hammer the pole

433
00:18:24,039 --> 00:18:26,809
the test the pole for rot and make sure that the pole is

434
00:18:26,809 --> 00:18:28,000
good if the pole is not

435
00:18:28,000 --> 00:18:32,259
good they send it back to us and we replace the pole the

436
00:18:32,259 --> 00:18:33,519
sweeps are to

437
00:18:33,519 --> 00:18:35,950
replace if they see any deteriorated insulators or other

438
00:18:35,950 --> 00:18:36,680
equipment that

439
00:18:36,680 --> 00:18:39,549
replace those and we are also going to do an RFP for

440
00:18:39,549 --> 00:18:40,799
infrared testing to

441
00:18:40,799 --> 00:18:45,680
identify hot connections on the distribution system

442
00:18:45,680 --> 00:18:47,559
lightning you know

443
00:18:47,559 --> 00:18:50,000
the sweeps are looking into that replacing damage or

444
00:18:50,000 --> 00:18:50,960
missing lightning

445
00:18:50,960 --> 00:18:53,359
arresters and replace damage or missing ground rods and

446
00:18:53,359 --> 00:18:54,279
guys that's the best

447
00:18:54,279 --> 00:18:59,859
thing we can do against lightning and material and

448
00:18:59,859 --> 00:19:02,920
equipment failures we use

449
00:19:02,920 --> 00:19:05,630
contingency analysis to minimize the number of customers

450
00:19:05,630 --> 00:19:06,480
effective and now

451
00:19:06,480 --> 00:19:10,250
it's time what this means is we have several ways that we

452
00:19:10,250 --> 00:19:11,599
we try to design it

453
00:19:11,599 --> 00:19:14,309
into the system several ways to serve different areas of

454
00:19:14,309 --> 00:19:15,279
the city so that if

455
00:19:15,279 --> 00:19:20,759
we have a failure of a substation or not something subst

456
00:19:20,759 --> 00:19:23,599
ation or feeder or

457
00:19:23,599 --> 00:19:26,630
substation bank we have other ways to get that power back

458
00:19:26,630 --> 00:19:27,799
up fairly quickly so

459
00:19:27,799 --> 00:19:30,390
that we can then spend the time restoring the power and

460
00:19:30,390 --> 00:19:31,000
still have

461
00:19:31,000 --> 00:19:35,549
customers up and when we're working in areas that have

462
00:19:35,549 --> 00:19:37,880
dated facilities that we

463
00:19:37,880 --> 00:19:41,740
go ahead and try to be proactive and replace those

464
00:19:41,740 --> 00:19:44,359
facilities when we can okay

465
00:19:44,359 --> 00:19:46,890
I've got a quick video here that's going to kind of talk a

466
00:19:46,890 --> 00:19:47,920
little bit about the

467
00:19:47,920 --> 00:19:52,650
advantages of the new rely guard products that we got and

468
00:19:52,650 --> 00:19:54,079
Brad is going to

469
00:19:54,079 --> 00:19:58,559
kind of talk to you a little bit about that

470
00:20:07,240 --> 00:20:18,910
when we started looking at this I've been here for 27 years

471
00:20:18,910 --> 00:20:20,039
to try and figure

472
00:20:20,039 --> 00:20:22,670
out you know what why the squirrels are getting in there

473
00:20:22,670 --> 00:20:23,880
what they're doing and

474
00:20:23,880 --> 00:20:26,990
the main thing that a squirrel does that gives us the

475
00:20:26,990 --> 00:20:29,160
problem besides you know on

476
00:20:29,160 --> 00:20:34,039
the transformer for warmth they will they will climb up and

477
00:20:34,039 --> 00:20:36,079
they will they

478
00:20:36,079 --> 00:20:40,339
collect all kinds of nuts berries food and they store it

479
00:20:40,339 --> 00:20:41,799
and so what they do is

480
00:20:41,799 --> 00:20:45,059
they climb up on the transformer and they try and stuff

481
00:20:45,059 --> 00:20:46,200
these berries and

482
00:20:46,200 --> 00:20:50,460
nuts and stuff up inside these squirrel protection and then

483
00:20:50,460 --> 00:20:51,319
once they get full

484
00:20:51,319 --> 00:20:54,410
they start tracking over and then that's when you're going

485
00:20:54,410 --> 00:20:55,640
to have the outage or

486
00:20:55,640 --> 00:20:57,890
they're going to get their hands in there and they're going

487
00:20:57,890 --> 00:20:58,559
to make contact

488
00:20:58,559 --> 00:21:00,920
well they're standing on a transformer and the transformers

489
00:21:00,920 --> 00:21:02,279
grounded and so

490
00:21:02,279 --> 00:21:05,460
they're going to make contact with the wire and then that's

491
00:21:05,460 --> 00:21:06,440
when you know the

492
00:21:06,440 --> 00:21:09,599
explosion that you hear the fuses blow and that's what's

493
00:21:09,599 --> 00:21:12,200
causing it and I've

494
00:21:12,200 --> 00:21:16,869
got one one example I want to show you this is another one

495
00:21:16,869 --> 00:21:17,200
I can help you pass around if you want to

496
00:21:17,200 --> 00:21:20,319
but that's one of the old squirrel protection and after a

497
00:21:20,319 --> 00:21:24,000
while we found out that they start tracking over and they

498
00:21:24,000 --> 00:21:27,759
start burning a path and once they start tracking then the

499
00:21:27,759 --> 00:21:31,319
squirrel protection itself kind of becomes a conductor and

500
00:21:31,319 --> 00:21:32,200
then when the squirrel just

501
00:21:32,200 --> 00:21:37,150
touches it that's when we have a fault and I learned of a

502
00:21:37,150 --> 00:21:38,799
new product and it was

503
00:21:38,799 --> 00:21:42,750
actually designed by a lineman so he had the experience as

504
00:21:42,750 --> 00:21:45,079
far as you know knowing what the squirrels are doing

505
00:21:45,079 --> 00:21:48,240
knowing how they're doing it and so he got with another

506
00:21:48,240 --> 00:21:51,750
company and they designed squirrel protection called Reli-G

507
00:21:51,750 --> 00:21:56,200
uard and they also impregnate these with a product called

508
00:21:56,200 --> 00:22:00,200
Reli-Tanium and it's non-flammable.

509
00:22:00,200 --> 00:22:08,279
It has a flammability rating of VO and I'm sorry and they

510
00:22:08,279 --> 00:22:11,599
it's a new product it's supposed to be a 15 year product

511
00:22:11,599 --> 00:22:14,200
and so far we've had really good good luck with them and

512
00:22:14,200 --> 00:22:16,200
one thing that the squirrels can't do is they can't get

513
00:22:16,200 --> 00:22:19,720
them off once you lock them on it has a keeper key on it

514
00:22:19,720 --> 00:22:22,400
and once we set it I mean it's on there the squirrel can't

515
00:22:22,400 --> 00:22:26,619
raise it up and also the inside of it has a fitting where

516
00:22:26,619 --> 00:22:28,990
it will grab the skirt of the transformer they cannot pick

517
00:22:28,990 --> 00:22:29,200
it up and they can't get it off.

518
00:22:29,200 --> 00:22:31,660
They cannot pick it up and they can't move it they can't

519
00:22:31,660 --> 00:22:34,910
twist it it's pretty tough to put on but once it's on it's

520
00:22:34,910 --> 00:22:43,200
on and we're having really good luck with it.

521
00:22:43,200 --> 00:22:46,569
So the video is playing now and Brad will kind of talk

522
00:22:46,569 --> 00:22:49,380
about what what they're doing now is they're just going to

523
00:22:49,380 --> 00:22:52,200
test the circuit this is a controlled circuit that we built

524
00:22:52,200 --> 00:22:56,269
and we can do arching demos we do it a lot for schools and

525
00:22:56,269 --> 00:22:57,200
you know different events.

526
00:22:57,200 --> 00:23:11,230
And now we've installed the old squirrel guard which also

527
00:23:11,230 --> 00:23:15,230
is passing around and we're using a sausage to simulate you

528
00:23:15,230 --> 00:23:19,809
know something getting up there touching it and you'll see

529
00:23:19,809 --> 00:23:23,349
how it will arc up and this is supposed to be our

530
00:23:23,349 --> 00:23:25,200
protection this was the old style protection.

531
00:23:25,200 --> 00:23:44,200
But over a period of time it's not protecting anything.

532
00:23:44,200 --> 00:23:49,200
But the hot dog is cooked.

533
00:23:49,200 --> 00:24:15,200
Now we're going to install this.

534
00:24:15,200 --> 00:24:17,500
And now the guys are going to go ahead and you'll see them

535
00:24:17,500 --> 00:24:20,200
they'll install that new rely guard product on the jumper.

536
00:24:45,200 --> 00:25:12,099
And now they're going to simulate the same thing again a

537
00:25:12,099 --> 00:25:14,200
squirrel climbing up there and touching the.

538
00:25:14,200 --> 00:25:32,200
Touching the cover up.

539
00:25:32,200 --> 00:25:35,289
And actually rub it all up and down the wire and everything

540
00:25:35,289 --> 00:25:38,259
and it's it's really a good cover up and only till he gets

541
00:25:38,259 --> 00:25:41,220
up to the bear conductor does it draw an arc but we're not

542
00:25:41,220 --> 00:25:44,250
going to get a squirrel up there because if they do happen

543
00:25:44,250 --> 00:25:47,200
to get up there and they will climb up and get on the line.

544
00:25:47,200 --> 00:25:50,160
It's kind of like a bird on the wire. I mean they're the

545
00:25:50,160 --> 00:25:52,200
same potential as the wire itself.

546
00:25:52,200 --> 00:25:58,250
But this seems I mean this is really creating a good you

547
00:25:58,250 --> 00:26:02,200
know protection for our system.

548
00:26:02,200 --> 00:26:04,250
And then here Michael's going to go ahead and just show you

549
00:26:04,250 --> 00:26:08,380
what a tree limb does. Once it's been on the line you'll

550
00:26:08,380 --> 00:26:14,059
see it I mean they'll smoke but eventually they're going to

551
00:26:14,059 --> 00:26:17,200
burn a path.

552
00:26:17,200 --> 00:26:38,200
That's about the questions about the product.

553
00:26:38,200 --> 00:26:40,200
When did we start using this product.

554
00:26:40,200 --> 00:26:47,400
We actually started about almost a year ago. We were just

555
00:26:47,400 --> 00:26:48,410
but we didn't just jump right into it because we wanted to

556
00:26:48,410 --> 00:26:49,200
make sure it was going to work for us.

557
00:26:49,200 --> 00:26:51,970
So we were trying it on different things and we had one of

558
00:26:51,970 --> 00:26:54,869
their engineers come visit with us and they actually went

559
00:26:54,869 --> 00:26:57,519
out and we showed them some air switches we're having

560
00:26:57,519 --> 00:27:00,309
trouble and actually designed a guard to go over the air

561
00:27:00,309 --> 00:27:02,200
switch steel bracket.

562
00:27:02,200 --> 00:27:05,319
And we did we did some tests and stuff we've done we've

563
00:27:05,319 --> 00:27:08,750
done things like this. Now we're using it full force and

564
00:27:08,750 --> 00:27:11,200
the feeder sweeps. That's what these are doing.

565
00:27:11,200 --> 00:27:14,130
We actually have to go into the backyards and or on the

566
00:27:14,130 --> 00:27:17,380
streets wherever the transformers located at rest or the

567
00:27:17,380 --> 00:27:20,200
underground termination points on the poles.

568
00:27:20,200 --> 00:27:23,140
And we have to kill it out and then we install this we

569
00:27:23,140 --> 00:27:26,779
install the ill guard over the wire takes about about 15 to

570
00:27:26,779 --> 00:27:30,200
20 minutes sometimes a little sooner than that.

571
00:27:30,200 --> 00:27:34,200
But we're going to get the benefit from it.

572
00:27:34,200 --> 00:27:37,380
So we'll be able to monitor this in the next few years. Yes

573
00:27:37,380 --> 00:27:39,200
. See how many we should get good data.

574
00:27:39,200 --> 00:27:48,200
Didn't try.

575
00:27:48,200 --> 00:27:51,200
It's used all over our entire system.

576
00:27:51,200 --> 00:27:54,490
So I mean anytime we come on line they was something it has

577
00:27:54,490 --> 00:27:57,630
a live guard cover up the old guard and we're we have you

578
00:27:57,630 --> 00:28:01,009
know so many features in the town that we're just trying to

579
00:28:01,009 --> 00:28:04,119
start with the ones that are impacted the most and then we

580
00:28:04,119 --> 00:28:06,200
're just branching out in the service trucks.

581
00:28:06,200 --> 00:28:08,490
They're doing that constantly when they get on calls when

582
00:28:08,490 --> 00:28:11,599
they see one. I mean they're they're trying to install

583
00:28:11,599 --> 00:28:14,200
these as fast as they can as many as they can.

584
00:28:14,200 --> 00:28:21,200
The North has been yes ma'am.

585
00:28:21,200 --> 00:28:25,470
And we were at a there's three fingers in the north where

586
00:28:25,470 --> 00:28:26,200
100% on that.

587
00:28:26,200 --> 00:28:31,200
And it's the guys worked really hard.

588
00:28:31,200 --> 00:28:35,759
Is the safety device that we cook the hot dog with is that

589
00:28:35,759 --> 00:28:36,200
still available.

590
00:28:36,200 --> 00:28:39,200
Do people still buy and use those.

591
00:28:39,200 --> 00:28:40,200
These right here.

592
00:28:40,200 --> 00:28:44,200
They're still available. We don't use them.

593
00:28:44,200 --> 00:28:49,400
So in that situation that we just saw that products

594
00:28:49,400 --> 00:28:52,200
installed correctly but not working.

595
00:28:52,200 --> 00:28:55,160
It's installed correctly but over a period of time that it

596
00:28:55,160 --> 00:28:58,150
's not dielectrically sound for it and then the ozone I mean

597
00:28:58,150 --> 00:29:01,019
the sunlight just eats it up and it starts tracking and it

598
00:29:01,019 --> 00:29:04,200
'll start creating little little lines of track lines.

599
00:29:04,200 --> 00:29:07,170
And then once it gets to a certain point then it'll

600
00:29:07,170 --> 00:29:10,609
actually can mail and just cover the bushing. We found them

601
00:29:10,609 --> 00:29:12,200
where they just melt and go down on the bushing.

602
00:29:12,200 --> 00:29:15,250
I mean it's just not a good product. They thought it was

603
00:29:15,250 --> 00:29:16,200
but it wasn't.

604
00:29:16,200 --> 00:29:18,200
But it's still available on the market.

605
00:29:18,200 --> 00:29:19,200
Yes sir.

606
00:29:19,200 --> 00:29:22,200
What's the price point between the two.

607
00:29:22,200 --> 00:29:27,200
That I don't have the light guard is very expensive.

608
00:29:27,200 --> 00:29:40,200
I can get that.

609
00:29:40,200 --> 00:29:43,200
Okay for the light guard products.

610
00:29:43,200 --> 00:29:49,250
They go anywhere from two hundred and forty seven dollars

611
00:29:49,250 --> 00:29:55,200
to it looks like three hundred and six dollars each.

612
00:29:55,200 --> 00:29:58,220
The pole wrap which we've got one over here you haven't

613
00:29:58,220 --> 00:30:01,200
seen it is is about eight dollars and sixty cents.

614
00:30:01,200 --> 00:30:04,700
I mean is one hundred and sixty seven dollars and fifty

615
00:30:04,700 --> 00:30:05,200
cents.

616
00:30:05,200 --> 00:30:08,200
And that price is for a box of them. It's not individual.

617
00:30:08,200 --> 00:30:11,200
I think there's twenty five in a box.

618
00:30:11,200 --> 00:30:13,230
And I would say these other ones are probably going to be

619
00:30:13,230 --> 00:30:14,200
comparable in price.

620
00:30:14,200 --> 00:30:17,029
The one the old ones because they all kind of come in the

621
00:30:17,029 --> 00:30:18,200
same price point.

622
00:30:18,200 --> 00:30:22,700
So that's about what you're looking at from a price

623
00:30:22,700 --> 00:30:24,200
standpoint.

624
00:30:24,200 --> 00:30:26,200
So the cost.

625
00:30:26,200 --> 00:30:29,200
So the cost is roughly comparable.

626
00:30:29,200 --> 00:30:34,920
But and and it would end it saves us cost in the time and

627
00:30:34,920 --> 00:30:37,200
spend in repairs.

628
00:30:37,200 --> 00:30:38,200
Yes ma'am.

629
00:30:38,200 --> 00:30:39,200
Yeah.

630
00:30:39,200 --> 00:30:40,200
Thank you.

631
00:30:40,200 --> 00:30:41,200
OK.

632
00:30:41,200 --> 00:30:42,200
Very good.

633
00:30:42,200 --> 00:30:44,200
Any other questions.

634
00:30:44,200 --> 00:30:49,200
Somebody want to see the video again.

635
00:30:49,200 --> 00:30:50,200
Thank you guys.

636
00:30:50,200 --> 00:30:51,200
Thank you.

637
00:30:51,200 --> 00:30:54,200
And Brad showed you one of the products.

638
00:30:54,200 --> 00:30:56,009
Again if you want to see him I can actually leave this if

639
00:30:56,009 --> 00:30:57,200
you want to see it afterwards.

640
00:30:57,200 --> 00:30:59,750
But there are different types of products for different

641
00:30:59,750 --> 00:31:00,200
uses.

642
00:31:00,200 --> 00:31:03,200
The one he showed you was for transformer bushing.

643
00:31:03,200 --> 00:31:06,700
They have them for an insulator cover as well as other type

644
00:31:06,700 --> 00:31:10,200
of things that we use them all that we have out there.

645
00:31:10,200 --> 00:31:11,200
OK.

646
00:31:11,200 --> 00:31:14,349
So in closing this I want to kind of tell you a little bit

647
00:31:14,349 --> 00:31:16,200
about some good news for us.

648
00:31:16,200 --> 00:31:20,609
APP R P 3 is a destination that that signifies leadership

649
00:31:20,609 --> 00:31:24,450
in reliability safety workforce development system

650
00:31:24,450 --> 00:31:25,200
improvement.

651
00:31:25,200 --> 00:31:28,990
For the past few years we have been at the gold level but I

652
00:31:28,990 --> 00:31:32,269
'm very happy to tell you that this year at the APP

653
00:31:32,269 --> 00:31:37,200
conference DME has been moved up to the platinum level for

654
00:31:37,200 --> 00:31:38,200
reliability.

655
00:31:38,200 --> 00:31:39,200
Congratulations.

656
00:31:39,200 --> 00:31:44,200
Very happy with this.

657
00:31:44,200 --> 00:31:46,200
So that's the end of the formal presentation.

658
00:31:46,200 --> 00:31:50,200
Any questions.

659
00:31:50,200 --> 00:31:52,200
Yes sir.

660
00:31:52,200 --> 00:31:57,200
You mentioned that we were at four nines of uptime right.

661
00:31:57,200 --> 00:32:01,039
If all you were doing were scheduled maintenance let's just

662
00:32:01,039 --> 00:32:04,549
say we live in a world where we don't have unexpected out

663
00:32:04,549 --> 00:32:05,200
ages.

664
00:32:05,200 --> 00:32:12,200
What would you say your uptime would be percentage wise.

665
00:32:12,200 --> 00:32:16,460
What we're at four times if we spent all the time on it it

666
00:32:16,460 --> 00:32:18,200
may go to five nines.

667
00:32:18,200 --> 00:32:21,200
We're actually at point nine nine eight.

668
00:32:21,200 --> 00:32:24,200
So we're pretty darn close on the fifth digit.

669
00:32:24,200 --> 00:32:28,470
But you know it's kind of a typical thing to go to four

670
00:32:28,470 --> 00:32:29,200
digits.

671
00:32:29,200 --> 00:32:31,700
So that's why we stop at four digits and the bulk of the

672
00:32:31,700 --> 00:32:34,000
changes that you're going to make are really the

673
00:32:34,000 --> 00:32:36,200
installation of this new equipment.

674
00:32:36,200 --> 00:32:38,750
But basically we're still just going to approach it the way

675
00:32:38,750 --> 00:32:40,200
been approaching it before.

676
00:32:40,200 --> 00:32:42,730
Yes sir unless we can think of anything different in the

677
00:32:42,730 --> 00:32:43,200
area.

678
00:32:43,200 --> 00:32:46,660
I mean again the feeder sweeps have done a really good job

679
00:32:46,660 --> 00:32:50,000
of eliminating a lot of the issues that we've had in the

680
00:32:50,000 --> 00:32:54,200
northeastern quadrant and we're watching that.

681
00:32:54,200 --> 00:32:57,130
This is a standard installation product that we put

682
00:32:57,130 --> 00:32:59,200
everywhere now within the city.

683
00:32:59,200 --> 00:33:02,089
So you know we should be able to see some improvement from

684
00:33:02,089 --> 00:33:03,200
that standpoint.

685
00:33:03,200 --> 00:33:05,460
Again some of the duration the reason why the duration went

686
00:33:05,460 --> 00:33:07,630
up because we now have the meters telling us when they're

687
00:33:07,630 --> 00:33:09,200
out which is a very positive thing.

688
00:33:09,200 --> 00:33:12,299
I mean that's something that from an engineering standpoint

689
00:33:12,299 --> 00:33:15,029
we've always known is that once you get a my hooked into

690
00:33:15,029 --> 00:33:17,829
your own system your numbers are going to get worse for a

691
00:33:17,829 --> 00:33:21,200
bit because it's now reporting immediately versus waiting

692
00:33:21,200 --> 00:33:23,200
maybe eight hours for a person to come home.

693
00:33:23,200 --> 00:33:25,200
Yeah I don't know anymore.

694
00:33:25,200 --> 00:33:26,200
I know you know.

695
00:33:26,200 --> 00:33:28,200
So we did.

696
00:33:28,200 --> 00:33:30,490
I thought that was an insightful question because a lot of

697
00:33:30,490 --> 00:33:32,829
the utilities I'm familiar with they actually don't count

698
00:33:32,829 --> 00:33:35,069
the schedule maintenance as an outage when they do their

699
00:33:35,069 --> 00:33:37,200
out of these calculations that Jerry does.

700
00:33:37,200 --> 00:33:39,200
And here I think we go strictly by the book.

701
00:33:39,200 --> 00:33:42,200
We're not trying to shade anything any different direction.

702
00:33:42,200 --> 00:33:43,200
So we give it all to you.

703
00:33:43,200 --> 00:33:46,200
But a lot of places will ignore that in their calculations.

704
00:33:46,200 --> 00:33:49,200
So I just know for nine is pretty solid.

705
00:33:49,200 --> 00:33:50,200
Pretty good.

706
00:33:50,200 --> 00:33:53,630
That fifth nine is you know that's very difficult to you

707
00:33:53,630 --> 00:33:56,200
know to make that kind of transition.

708
00:33:56,200 --> 00:33:58,200
So you guys are doing a great job.

709
00:33:58,200 --> 00:34:00,200
Thank you.

710
00:34:00,200 --> 00:34:01,200
Thanks everyone.

711
00:34:01,200 --> 00:34:02,200
Thank you.

712
00:34:08,199 --> 00:34:09,199
Okay.

713
00:34:09,199 --> 00:34:14,130
The next next time we have in work session is to receive a

714
00:34:14,130 --> 00:34:15,199
report.

715
00:34:15,199 --> 00:34:18,699
Holder discussion and give staff direction regarding the

716
00:34:18,699 --> 00:34:23,199
customer service fiscal year 2018 19 operating budget.

717
00:34:23,199 --> 00:34:24,199
Mr. Chairman.

718
00:34:24,199 --> 00:34:25,199
P.B. members.

719
00:34:25,199 --> 00:34:27,199
My name is Tony point them the director of finance.

720
00:34:27,199 --> 00:34:29,199
So I went to very quickly just introduce this item.

721
00:34:29,199 --> 00:34:31,199
Tiffany Thompson will come up here.

722
00:34:31,199 --> 00:34:33,699
She's our customer service manager and I've asked her to go

723
00:34:33,699 --> 00:34:36,130
ahead and walk you through this budget presentation for

724
00:34:36,130 --> 00:34:37,199
customer service.

725
00:34:37,199 --> 00:34:39,199
So I have to cover a couple of things.

726
00:34:39,199 --> 00:34:41,860
The first one is that making this a separate fund does not

727
00:34:41,860 --> 00:34:43,199
make it a new operation.

728
00:34:43,199 --> 00:34:46,909
It's an existing operation that has been in the water fund

729
00:34:46,909 --> 00:34:48,199
for many years.

730
00:34:48,199 --> 00:34:52,199
We have other internal service funds in the city.

731
00:34:52,199 --> 00:34:54,730
Those that come to mind are technology services for our

732
00:34:54,730 --> 00:34:57,199
computers risk management our fleet operation.

733
00:34:57,199 --> 00:35:00,079
And so this isn't anything different than what we've done

734
00:35:00,079 --> 00:35:02,199
with other operations within the city.

735
00:35:02,199 --> 00:35:05,250
And then finally by separating the side of its own

736
00:35:05,250 --> 00:35:08,840
segregated fund it will still continue to come back to the

737
00:35:08,840 --> 00:35:12,739
P.B. on an annual basis for review and approval and to seek

738
00:35:12,739 --> 00:35:15,199
your recommendation back to the city council.

739
00:35:15,199 --> 00:35:19,059
And so none of those things will change by making this a

740
00:35:19,059 --> 00:35:20,199
separate fund.

741
00:35:20,199 --> 00:35:23,139
So I'll have Tiffany come up here walk you through the

742
00:35:23,139 --> 00:35:24,199
presentation.

743
00:35:24,199 --> 00:35:35,139
And if you have any questions we'll certainly be happy to

744
00:35:35,139 --> 00:35:39,199
answer those for you.

745
00:35:39,199 --> 00:35:41,199
Good morning everyone.

746
00:35:41,199 --> 00:35:44,199
I'm sorry that I don't have props like hot dogs and.

747
00:35:44,199 --> 00:35:46,199
So I really feel like I'm going to be disappointed.

748
00:35:46,199 --> 00:35:47,199
Thanks.

749
00:35:47,199 --> 00:35:48,199
Yeah.

750
00:35:48,199 --> 00:35:49,199
Give me that with that.

751
00:35:49,199 --> 00:35:51,199
So I'll bring s'mores next time we meet.

752
00:35:51,199 --> 00:35:54,139
I'm Tiffany Thompson customer service manager happy to be

753
00:35:54,139 --> 00:35:56,780
here this morning to go over our budget presentation

754
00:35:56,780 --> 00:35:59,199
customer service assist all five utilities.

755
00:35:59,199 --> 00:36:02,559
We operate the main switch calls coming into this city and

756
00:36:02,559 --> 00:36:06,079
we also take care of billing and customer service functions

757
00:36:06,079 --> 00:36:08,199
for 20 other departments.

758
00:36:08,199 --> 00:36:10,679
So last year we calculated and build over six hundred and

759
00:36:10,679 --> 00:36:12,199
twenty seven thousand bills.

760
00:36:12,199 --> 00:36:15,199
We accepted six hundred and sixteen thousand payments.

761
00:36:15,199 --> 00:36:17,699
We filled it over one hundred and eighty five thousand

762
00:36:17,699 --> 00:36:18,199
calls.

763
00:36:18,199 --> 00:36:21,210
We took care of over seventy two thousand customers in our

764
00:36:21,210 --> 00:36:24,250
lobby operation and we collected and reconciled over two

765
00:36:24,250 --> 00:36:27,530
hundred sixty eight million dollars worth of revenue in our

766
00:36:27,530 --> 00:36:28,199
department.

767
00:36:28,199 --> 00:36:31,599
And our mission and customer service is to help serve and

768
00:36:31,599 --> 00:36:35,199
educate both our internal and our external customers.

769
00:36:35,199 --> 00:36:38,659
So the objectives of this presentation is as Tony mentioned

770
00:36:38,659 --> 00:36:42,199
to discuss the internal creating the internal service fund

771
00:36:42,199 --> 00:36:46,199
review fund assumptions the financial forecast and review

772
00:36:46,199 --> 00:36:47,199
our revenues and expenditures and then go over the budget.

773
00:36:47,199 --> 00:36:51,199
And then go over some additional departmental information.

774
00:36:51,199 --> 00:36:53,690
So with the proposal for the internal service funds

775
00:36:53,690 --> 00:36:56,300
currently customer service is housed under the water

776
00:36:56,300 --> 00:36:57,199
utility fund.

777
00:36:57,199 --> 00:37:00,699
And it's been that way since 1999 and creating that

778
00:37:00,699 --> 00:37:04,139
internal service fund helps separate the accounting fund

779
00:37:04,139 --> 00:37:07,500
that's used to account for the services provided to those

780
00:37:07,500 --> 00:37:09,199
other services at cost.

781
00:37:09,199 --> 00:37:12,460
And so we do want to do this because we don't only service

782
00:37:12,460 --> 00:37:15,619
just water we do all five utilities and a general fund

783
00:37:15,619 --> 00:37:17,199
functions with that.

784
00:37:17,199 --> 00:37:20,650
And with this internal service fund creation it's going to

785
00:37:20,650 --> 00:37:24,119
reduce the required reserve level for the water fund and it

786
00:37:24,119 --> 00:37:27,199
will help reduce our overall budget expenses.

787
00:37:27,199 --> 00:37:29,889
So the fund assumptions include that we will not have any

788
00:37:29,889 --> 00:37:32,199
operating reserve required for this fund.

789
00:37:32,199 --> 00:37:36,409
Our revenues and expenditures will continue to be based off

790
00:37:36,409 --> 00:37:39,690
of our percentage of service utilized. So that means if the

791
00:37:39,690 --> 00:37:41,519
utility or the general fund is represented on a bill if we

792
00:37:41,519 --> 00:37:44,639
take a phone call for them or revenue that they'll get a

793
00:37:44,639 --> 00:37:47,199
certain allocation of that for service back to them.

794
00:37:47,199 --> 00:37:50,199
So nothing changes with how we do that now.

795
00:37:50,199 --> 00:37:53,690
So our financial forecast we do propose to have a 3 percent

796
00:37:53,690 --> 00:37:57,130
increase across the board for our personal services going

797
00:37:57,130 --> 00:38:00,199
forward and then a 2 percent everywhere else.

798
00:38:00,199 --> 00:38:04,190
The major budget changes that we are anticipating for 2020

799
00:38:04,190 --> 00:38:06,199
is the addition of 1.5 FTEs.

800
00:38:06,199 --> 00:38:09,199
That's a full time person and then a part time staff.

801
00:38:09,199 --> 00:38:12,909
And that's just to be able to continue to have capacity for

802
00:38:12,909 --> 00:38:16,469
us to handle our increased scope of services that we're

803
00:38:16,469 --> 00:38:20,130
offering and then also with the increase of our customer

804
00:38:20,130 --> 00:38:21,199
service base.

805
00:38:21,199 --> 00:38:26,070
Our highlights. This is how we allocate out our our total

806
00:38:26,070 --> 00:38:27,199
budget.

807
00:38:27,199 --> 00:38:30,869
Again that's based off of if the utility is represented on

808
00:38:30,869 --> 00:38:34,079
a bill if we take a phone call for them and accept the

809
00:38:34,079 --> 00:38:37,690
revenue is proportionate to what services we provide to

810
00:38:37,690 --> 00:38:38,199
them.

811
00:38:38,199 --> 00:38:41,300
And our budgeting highlights this year we do have a slight

812
00:38:41,300 --> 00:38:44,139
increase in our personal services for materials and

813
00:38:44,139 --> 00:38:47,440
supplies that's directly related to our bill production and

814
00:38:47,440 --> 00:38:48,199
postage.

815
00:38:48,199 --> 00:38:51,199
We have a decrease in that line item budget this year.

816
00:38:51,199 --> 00:38:52,789
I'm going to talk a little bit more about that in just a

817
00:38:52,789 --> 00:38:53,199
moment.

818
00:38:53,199 --> 00:38:56,699
We did have a large increase in our electronic billing

819
00:38:56,699 --> 00:39:00,440
adoption which is giving us a decrease in this need for for

820
00:39:00,440 --> 00:39:04,199
funds in this line item and then for our operations.

821
00:39:04,199 --> 00:39:07,170
This is where we increase the twenty five thousand dollars

822
00:39:07,170 --> 00:39:08,199
for the plus one.

823
00:39:08,199 --> 00:39:11,179
But we also have some additional savings in other area and

824
00:39:11,179 --> 00:39:14,199
overall we have an overall decrease in that line item.

825
00:39:14,199 --> 00:39:17,929
And so we're maintaining about a five point four million

826
00:39:17,929 --> 00:39:20,199
dollar budget again this year.

827
00:39:20,199 --> 00:39:22,860
So our position summary we have fifty one souls and

828
00:39:22,860 --> 00:39:26,199
customer service which makes up forty two point five FTEs.

829
00:39:26,199 --> 00:39:29,179
We have a cross section of full time employees part time

830
00:39:29,179 --> 00:39:32,380
permanent employees and then seasonal staff that we bring

831
00:39:32,380 --> 00:39:35,199
into assistance with our heavier volume times.

832
00:39:35,199 --> 00:39:38,840
Thirty of those souls help us with our frontline operations

833
00:39:38,840 --> 00:39:41,199
to be there for our citizens needs.

834
00:39:41,199 --> 00:39:44,469
So our accomplishments for 17 18 we did launch a new

835
00:39:44,469 --> 00:39:47,679
payment portal in August called payment is since that time

836
00:39:47,679 --> 00:39:49,199
over twenty one thousand of our customers have been paid.

837
00:39:49,199 --> 00:39:51,909
So we have a total of twenty five thousand of our customers

838
00:39:51,909 --> 00:39:54,889
have registered through that payment portal that represents

839
00:39:54,889 --> 00:39:57,199
about 35 percent of our customer base.

840
00:39:57,199 --> 00:40:00,280
We have an increased electronic billing adoption which went

841
00:40:00,280 --> 00:40:03,099
up fifty five percent since last year and that's a direct

842
00:40:03,099 --> 00:40:06,199
reflection on how easy it is to sign up for e-billing now.

843
00:40:06,199 --> 00:40:08,610
And because of that we were able to have that budget

844
00:40:08,610 --> 00:40:10,199
reduction in that line item.

845
00:40:10,199 --> 00:40:13,550
We've also deployed an after call customer satisfaction

846
00:40:13,550 --> 00:40:14,199
survey.

847
00:40:14,199 --> 00:40:16,889
We're utilizing that right now so our customers have the

848
00:40:16,889 --> 00:40:19,480
opportunity to answer three short questions on their

849
00:40:19,480 --> 00:40:21,199
customer service experience.

850
00:40:21,199 --> 00:40:23,460
Right now we're seeing about a ninety seven point one

851
00:40:23,460 --> 00:40:26,199
percent satisfaction rating from our customers on that.

852
00:40:26,199 --> 00:40:29,260
And one of the last questions that we do ask customers if

853
00:40:29,260 --> 00:40:32,329
they want to receive a call back on their experience and

854
00:40:32,329 --> 00:40:35,360
our assumption when we first implemented that is when

855
00:40:35,360 --> 00:40:36,199
people want to call back.

856
00:40:36,199 --> 00:40:38,679
Maybe they didn't get everything they needed to get taken

857
00:40:38,679 --> 00:40:39,199
care of.

858
00:40:39,199 --> 00:40:42,440
We actually have seen the exact opposite. Customers are

859
00:40:42,440 --> 00:40:45,530
wanting a call back to accolade the customer service rep

860
00:40:45,530 --> 00:40:48,559
that assisted them and to really kind of shout their pra

861
00:40:48,559 --> 00:40:49,199
ises.

862
00:40:49,199 --> 00:40:51,590
So I think that's a testament to the staff that we have in

863
00:40:51,590 --> 00:40:52,199
our shop.

864
00:40:52,199 --> 00:40:54,079
So we're going to continue to deploy that out to customer

865
00:40:54,079 --> 00:40:55,199
service reps over the summer.

866
00:40:55,199 --> 00:40:57,659
We're just kind of tweaking some of the questions with that

867
00:40:57,659 --> 00:41:00,199
but we're pretty excited with those results thus far.

868
00:41:00,199 --> 00:41:03,329
We've also reduced the AMI disconnect meter reconnection

869
00:41:03,329 --> 00:41:05,199
time by almost 50 percent.

870
00:41:05,199 --> 00:41:07,719
So previously if we were doing a reconnection for a

871
00:41:07,719 --> 00:41:10,530
customer we would send out a service order to DME and then

872
00:41:10,530 --> 00:41:12,639
they would take care of the rest of the steps in order to

873
00:41:12,639 --> 00:41:13,199
do that.

874
00:41:13,199 --> 00:41:16,420
In January we took over the rest of those that process so

875
00:41:16,420 --> 00:41:20,199
we could holistically do it in-house with customer service.

876
00:41:20,199 --> 00:41:23,489
And by doing that again we've reduced that reconnection

877
00:41:23,489 --> 00:41:26,199
time by 50 percent for our customers.

878
00:41:26,199 --> 00:41:28,579
We're piloting the prepaid program right metering program

879
00:41:28,579 --> 00:41:29,199
right now.

880
00:41:29,199 --> 00:41:31,230
We have a couple of our internal staff that are on the

881
00:41:31,230 --> 00:41:32,199
program right now.

882
00:41:32,199 --> 00:41:35,380
We're working on training and just mapping out some of the

883
00:41:35,380 --> 00:41:38,199
additional processes throughout the summer.

884
00:41:38,199 --> 00:41:40,619
We are going to be educating our customers about the

885
00:41:40,619 --> 00:41:43,409
availability of that and signing customers up throughout

886
00:41:43,409 --> 00:41:44,199
the summer.

887
00:41:44,199 --> 00:41:46,969
And in September and October we're really going to do that

888
00:41:46,969 --> 00:41:49,579
hard push marketing push to get people to sign up on that

889
00:41:49,579 --> 00:41:50,199
adoption.

890
00:41:50,199 --> 00:41:53,400
But we do want to do it gradual so we can kind of grow into

891
00:41:53,400 --> 00:41:56,039
the program make sure that we know what the lessons learned

892
00:41:56,039 --> 00:41:58,750
are before we really do that full blown deployment with

893
00:41:58,750 --> 00:41:59,199
that.

894
00:41:59,199 --> 00:42:01,909
But as the word gets out if customers want to get on that

895
00:42:01,909 --> 00:42:04,199
we're going to get them signed up for it.

896
00:42:04,199 --> 00:42:06,650
We also implemented the new credit collection guidelines

897
00:42:06,650 --> 00:42:09,199
with your direction in city council which included

898
00:42:09,199 --> 00:42:12,429
executing a homelessness deposit waiver and we enhanced our

899
00:42:12,429 --> 00:42:15,199
plus one program criteria and funding.

900
00:42:15,199 --> 00:42:17,719
So for next year we want to report and proactively respond

901
00:42:17,719 --> 00:42:20,280
to those assistance needs with the data that we're going to

902
00:42:20,280 --> 00:42:21,199
be collecting.

903
00:42:21,199 --> 00:42:24,489
We also are working with DME right now on how we can reduce

904
00:42:24,489 --> 00:42:26,199
the reconnection charge.

905
00:42:26,199 --> 00:42:29,260
And so right now they're doing their cost of study survey

906
00:42:29,260 --> 00:42:32,119
and so we want to bring back what that would be and then

907
00:42:32,119 --> 00:42:35,179
also what the financial impact of that reduction of that

908
00:42:35,179 --> 00:42:36,199
rate will be.

909
00:42:36,199 --> 00:42:38,550
So that's something else that we're going to be bringing

910
00:42:38,550 --> 00:42:40,199
forth to you and a goal for next year.

911
00:42:40,199 --> 00:42:42,170
And we also want to continue to increase our adoption of

912
00:42:42,170 --> 00:42:43,199
self service options.

913
00:42:43,199 --> 00:42:46,199
So looking at the availability of adding a payment

914
00:42:46,199 --> 00:42:49,639
arrangement option online and then being able to connect

915
00:42:49,639 --> 00:42:52,199
and transfer services as well online.

916
00:42:52,199 --> 00:42:56,059
And so our budget emphasis is to maximize value while

917
00:42:56,059 --> 00:42:57,199
containing cost.

918
00:42:57,199 --> 00:42:59,840
And so we accomplish this by focusing on our performance

919
00:42:59,840 --> 00:43:02,449
metrics and some of the ones that we do is the self service

920
00:43:02,449 --> 00:43:03,199
adoption.

921
00:43:03,199 --> 00:43:05,579
So we want to make sure to provide multiple channels for

922
00:43:05,579 --> 00:43:08,199
customers to be able to pay and do their business online.

923
00:43:08,199 --> 00:43:10,539
We want to make sure that we're accomplishing first contact

924
00:43:10,539 --> 00:43:11,199
resolution.

925
00:43:11,199 --> 00:43:13,650
They call us that one time we want to make sure to take

926
00:43:13,650 --> 00:43:15,199
care of it that first time.

927
00:43:15,199 --> 00:43:17,780
So we're not creating duplication of effort for our

928
00:43:17,780 --> 00:43:20,599
customer and also for our staff and then average speed of

929
00:43:20,599 --> 00:43:21,199
answer.

930
00:43:21,199 --> 00:43:23,130
We want to get our citizens where they need to go as

931
00:43:23,130 --> 00:43:25,579
quickly as possible and answer that phone call within 60

932
00:43:25,579 --> 00:43:26,199
seconds.

933
00:43:26,199 --> 00:43:29,980
Right now we're averaging about 36 seconds for us to answer

934
00:43:29,980 --> 00:43:31,199
that phone call.

935
00:43:31,199 --> 00:43:34,230
And so the key drivers of our budget is the volumes of our

936
00:43:34,230 --> 00:43:37,530
customer base, the behaviors of our customers, how we

937
00:43:37,530 --> 00:43:40,539
respond to that volume and then how do we minimize that

938
00:43:40,539 --> 00:43:41,199
volume.

939
00:43:41,199 --> 00:43:43,780
And so we do that by reducing volume and improving

940
00:43:43,780 --> 00:43:47,199
efficiency while also increasing customer satisfaction.

941
00:43:47,199 --> 00:43:49,699
So we want to continue to invest in those self service

942
00:43:49,699 --> 00:43:52,550
options like the new payment portal, being able to sign for

943
00:43:52,550 --> 00:43:54,199
electronic billing online.

944
00:43:54,199 --> 00:43:57,199
And a critical measure for us is first contact resolution.

945
00:43:57,199 --> 00:44:00,099
Again, that's providing that holistic solution the first

946
00:44:00,099 --> 00:44:01,199
time they call in.

947
00:44:01,199 --> 00:44:04,090
And we measure this through a robust quality assurance

948
00:44:04,090 --> 00:44:07,139
program in our department where we actually grade eight to

949
00:44:07,139 --> 00:44:09,860
ten observations from our frontline staff to make sure that

950
00:44:09,860 --> 00:44:12,869
they're meeting our key performance indicators and offering

951
00:44:12,869 --> 00:44:15,199
coaching and development and that continuity of service.

952
00:44:15,199 --> 00:44:18,199
And so we want to continue to improve efficiency.

953
00:44:18,199 --> 00:44:21,440
We use a workforce management tool that takes historical

954
00:44:21,440 --> 00:44:24,250
data and tells us how what the forecast is and how we

955
00:44:24,250 --> 00:44:26,199
should deploy our resources.

956
00:44:26,199 --> 00:44:28,789
So that tells us where we should let staff go on break

957
00:44:28,789 --> 00:44:31,559
lunch, how many staff we should let off for the day so we

958
00:44:31,559 --> 00:44:34,199
can make sure that we meet our service levels.

959
00:44:34,199 --> 00:44:36,599
And then we want to continue to increase our process

960
00:44:36,599 --> 00:44:38,199
improvement and automation.

961
00:44:38,199 --> 00:44:41,440
And then with the new feedback that we're getting from the

962
00:44:41,440 --> 00:44:44,909
customer service survey, use what our customers are saying

963
00:44:44,909 --> 00:44:48,010
and then deploy different action items to assist them

964
00:44:48,010 --> 00:44:49,199
better as well.

965
00:44:49,199 --> 00:44:51,539
And so these are the results of our cost containment

966
00:44:51,539 --> 00:44:54,199
strategies and the changes in our customer behavior.

967
00:44:54,199 --> 00:44:58,469
So since 08 and 09, our customer base has increased by 18.3

968
00:44:58,469 --> 00:44:59,199
percent.

969
00:44:59,199 --> 00:45:01,199
Our lobby volume has decreased by 60 percent.

970
00:45:01,199 --> 00:45:05,059
We used to see over 108,000 more customers in our lobby

971
00:45:05,059 --> 00:45:06,199
than we do today.

972
00:45:06,199 --> 00:45:08,730
And that's a direct reflection in that investment in those

973
00:45:08,730 --> 00:45:11,320
self-service tools that we've been deploying over the last

974
00:45:11,320 --> 00:45:12,199
several years.

975
00:45:12,199 --> 00:45:15,579
Our call center volume has increased by 34.7 percent and

976
00:45:15,579 --> 00:45:19,199
our average handle time has increased by almost 25 percent.

977
00:45:19,199 --> 00:45:21,280
And that isn't necessarily a bad thing because we are

978
00:45:21,280 --> 00:45:23,199
providing that first contact resolution.

979
00:45:23,199 --> 00:45:25,199
So we're not creating an additional callback.

980
00:45:25,199 --> 00:45:27,900
And we're also working with those customers that have more

981
00:45:27,900 --> 00:45:30,429
complex issues that we do need to spend a little bit more

982
00:45:30,429 --> 00:45:31,199
time with.

983
00:45:31,199 --> 00:45:34,119
And even though our customer base has increased by that 18.

984
00:45:34,119 --> 00:45:37,260
3 percent, our average speed of answer, how quickly we're

985
00:45:37,260 --> 00:45:41,199
answering that phone call, has decreased by 33 percent.

986
00:45:41,199 --> 00:45:44,510
And with that, a couple of months ago, we had a customer

987
00:45:44,510 --> 00:45:47,199
bring in her receipt from 1955.

988
00:45:47,199 --> 00:45:49,409
So 63 years later, she had her original receipt and she

989
00:45:49,409 --> 00:45:51,199
thought, well, you might want to have it.

990
00:45:51,199 --> 00:45:54,199
So I thought you would. I guess that's my prop.

991
00:45:54,199 --> 00:45:55,789
I should have brought it to be cool like you guys, but I

992
00:45:55,789 --> 00:45:56,199
didn't.

993
00:45:56,199 --> 00:46:00,809
So it's on the slideshow with that and with that, I'd be

994
00:46:00,809 --> 00:46:06,010
happy to answer any questions or comments that you may have

995
00:46:06,010 --> 00:46:06,199
.

996
00:46:06,199 --> 00:46:13,199
Questions.

997
00:46:13,199 --> 00:46:17,199
So what was the methodology in 1955 on light and power?

998
00:46:17,199 --> 00:46:18,199
Because it seems like it's the same thing.

999
00:46:18,199 --> 00:46:20,199
I'm not sure anybody here was here.

1000
00:46:20,199 --> 00:46:26,199
Questions. I'm sure.

1001
00:46:26,199 --> 00:46:28,199
Do you track first call resolution?

1002
00:46:28,199 --> 00:46:29,199
We sure do.

1003
00:46:29,199 --> 00:46:31,199
How we do you want to know how we track that?

1004
00:46:31,199 --> 00:46:34,300
Well, I mean, I'd like to know what your first call

1005
00:46:34,300 --> 00:46:36,199
resolution percentages.

1006
00:46:36,199 --> 00:46:37,199
Oh, great. It is.

1007
00:46:37,199 --> 00:46:39,199
I don't think you didn't list it there.

1008
00:46:39,199 --> 00:46:42,199
So yeah, it's ninety four point nine percent.

1009
00:46:42,199 --> 00:46:43,199
I just missed it.

1010
00:46:43,199 --> 00:46:45,199
OK. Thank you.

1011
00:46:45,199 --> 00:46:53,199
I had a question on the budget piece, the plus one.

1012
00:46:53,199 --> 00:46:57,199
Which category was that in? Plus one.

1013
00:46:57,199 --> 00:46:59,199
Let's see here.

1014
00:46:59,199 --> 00:47:01,199
It's what line item it is.

1015
00:47:01,199 --> 00:47:03,199
It's under operations.

1016
00:47:03,199 --> 00:47:07,199
Under operations. Yes, sir.

1017
00:47:07,199 --> 00:47:11,869
And that in the eight in the eighteen nineteen budget that

1018
00:47:11,869 --> 00:47:15,199
shows an increase to one twenty five.

1019
00:47:15,199 --> 00:47:17,199
Is that correct? Yes, sir. Correct.

1020
00:47:17,199 --> 00:47:20,199
And did we increase that in seventeen eighteen?

1021
00:47:20,199 --> 00:47:27,079
We actually increase this year, but we have savings that

1022
00:47:27,079 --> 00:47:31,199
will be able to accommodate it.

1023
00:47:31,199 --> 00:47:34,199
Any other? I'm sure there's questions.

1024
00:47:34,199 --> 00:47:37,630
One question, the three percent increase over the five

1025
00:47:37,630 --> 00:47:41,199
years, is that based on historical or how does that drive?

1026
00:47:41,199 --> 00:47:45,190
That is based on my story on that, because that's just what

1027
00:47:45,190 --> 00:47:46,199
we've done in the past.

1028
00:47:46,199 --> 00:47:50,199
But if there is additional methodology.

1029
00:47:50,199 --> 00:47:51,199
That's just a planning number.

1030
00:47:51,199 --> 00:47:53,699
I mean, it approximates the population growth, customer

1031
00:47:53,699 --> 00:47:54,199
growth.

1032
00:47:54,199 --> 00:47:55,199
So it's a plan number.

1033
00:47:55,199 --> 00:47:58,440
We reevaluate that on an annual basis, true it up if we

1034
00:47:58,440 --> 00:47:59,199
need to.

1035
00:47:59,199 --> 00:48:02,300
But for planning purposes, that's just a customary

1036
00:48:02,300 --> 00:48:04,199
percentage that we utilize.

1037
00:48:04,199 --> 00:48:09,199
So how does that compare to actual from previous years?

1038
00:48:09,199 --> 00:48:14,199
Yeah, we know.

1039
00:48:14,199 --> 00:48:16,199
Yeah, we don't have that right now.

1040
00:48:16,199 --> 00:48:18,199
We can get that back to you.

1041
00:48:18,199 --> 00:48:21,250
And just just to let the people know, we do plan to come

1042
00:48:21,250 --> 00:48:24,599
back to you around the twenty fifth of June to finalize

1043
00:48:24,599 --> 00:48:25,199
that.

1044
00:48:25,199 --> 00:48:28,349
We'll bring back any answers to any questions that we don't

1045
00:48:28,349 --> 00:48:29,199
have today.

1046
00:48:29,199 --> 00:48:32,079
But today we are seeking direction from you that if this is

1047
00:48:32,079 --> 00:48:34,559
something that you'd like for us to pursue and breaking

1048
00:48:34,559 --> 00:48:37,829
this out as an internal service fund, then we'll come back

1049
00:48:37,829 --> 00:48:39,199
to you as such around the twenty fifth.

1050
00:48:39,199 --> 00:48:44,199
But we'll get a response to you on that question.

1051
00:48:44,199 --> 00:48:47,289
Yeah, I just wanted to say as far as I'm concerned, I

1052
00:48:47,289 --> 00:48:52,079
really like this idea of separating the having a separate

1053
00:48:52,079 --> 00:48:54,199
internal service fund.

1054
00:48:54,199 --> 00:48:56,199
I actually was had not been aware.

1055
00:48:56,199 --> 00:49:00,469
I don't know about the rest of you that it was lumped

1056
00:49:00,469 --> 00:49:02,199
together with water.

1057
00:49:02,199 --> 00:49:06,199
So that seems to me arbitrary.

1058
00:49:06,199 --> 00:49:08,199
That was a kind of arbitrary.

1059
00:49:08,199 --> 00:49:10,119
I'm sure there was some reason behind it, but it looks

1060
00:49:10,119 --> 00:49:12,000
arbitrary and it doesn't look like it was good for the

1061
00:49:12,000 --> 00:49:13,199
water department either.

1062
00:49:13,199 --> 00:49:15,199
So it's better for water.

1063
00:49:15,199 --> 00:49:16,199
It's better for customer service.

1064
00:49:16,199 --> 00:49:18,199
It's better for the public for transparency.

1065
00:49:18,199 --> 00:49:22,469
And now when questions arise about the about what's being

1066
00:49:22,469 --> 00:49:28,010
spent in the internal service fund, it'll also be easier to

1067
00:49:28,010 --> 00:49:33,199
separate those numbers and and calculate them.

1068
00:49:33,199 --> 00:49:36,099
So anyway, this is an excellent resolution to a problem I

1069
00:49:36,099 --> 00:49:39,199
didn't I didn't even know existed until reading about it.

1070
00:49:39,199 --> 00:49:46,199
But I myself approve very much.

1071
00:49:46,199 --> 00:49:48,199
Yeah, I mean, go ahead.

1072
00:49:48,199 --> 00:49:49,199
No, I approve, too.

1073
00:49:49,199 --> 00:49:51,199
I think it's a great idea to do it this way.

1074
00:49:51,199 --> 00:49:53,199
And I'm sure it started that way.

1075
00:49:53,199 --> 00:49:57,940
Maybe water was the biggest person or department or

1076
00:49:57,940 --> 00:49:59,199
whatever.

1077
00:49:59,199 --> 00:50:03,199
Sometimes you just do things and keep doing them.

1078
00:50:03,199 --> 00:50:07,469
You know, I guess the the obviously other than the than

1079
00:50:07,469 --> 00:50:11,199
having it all in one place where you can see it.

1080
00:50:11,199 --> 00:50:15,059
We've all known that there's been, you know, cost of

1081
00:50:15,059 --> 00:50:17,199
service to all the utilities.

1082
00:50:17,199 --> 00:50:18,199
There's really not any change there.

1083
00:50:18,199 --> 00:50:22,469
I guess a major financial change is going to be the reserve

1084
00:50:22,469 --> 00:50:25,199
requirements for the water fund.

1085
00:50:25,199 --> 00:50:29,460
I mean, that's if we were reserving based upon what we were

1086
00:50:29,460 --> 00:50:33,280
collecting cost of service from all the other utilities,

1087
00:50:33,280 --> 00:50:38,199
that's a that's a huge, huge part of the waterfront.

1088
00:50:38,199 --> 00:50:40,860
That's a big number, as you can see, one and a half to two

1089
00:50:40,860 --> 00:50:42,199
point three million.

1090
00:50:42,199 --> 00:50:44,199
That's that's to me.

1091
00:50:44,199 --> 00:50:51,199
That's a major financial impact for this is doing that.

1092
00:50:51,199 --> 00:50:57,070
So now we go from having more more days and reserves for

1093
00:50:57,070 --> 00:50:58,199
water.

1094
00:50:58,199 --> 00:51:00,199
Yes, it definitely right.

1095
00:51:00,199 --> 00:51:02,199
It's an opportunity.

1096
00:51:02,199 --> 00:51:04,760
It increased the reserve a little bit more than it needed

1097
00:51:04,760 --> 00:51:05,199
to be.

1098
00:51:05,199 --> 00:51:07,670
And we also get questions on occasion for exactly how

1099
00:51:07,670 --> 00:51:09,199
customer service is funded.

1100
00:51:09,199 --> 00:51:11,210
So the way that we've laid that out, I'm hoping that

1101
00:51:11,210 --> 00:51:13,199
explains to the public a little bit better.

1102
00:51:13,199 --> 00:51:16,199
Transparent.

1103
00:51:16,199 --> 00:51:17,199
Yep. Very good.

1104
00:51:17,199 --> 00:51:20,199
Any other questions?

1105
00:51:20,199 --> 00:51:21,199
No. Thank you.

1106
00:51:21,199 --> 00:51:25,199
Thank you. Appreciate it.

1107
00:51:25,199 --> 00:51:28,880
Okay, next, next time we have in the work session is to is

1108
00:51:28,880 --> 00:51:32,659
item C, which is to receive a report, hold a discussion and

1109
00:51:32,659 --> 00:51:37,070
give staff direction regarding the water fiscal year 2018

1110
00:51:37,070 --> 00:51:48,199
19 operating and capital budget.

1111
00:51:48,199 --> 00:51:52,880
So, Mr. Chairman, again, Tony pointed director finance, a

1112
00:51:52,880 --> 00:51:56,199
PB members, thank you for having me today.

1113
00:51:56,199 --> 00:52:00,460
Over the last several months, we've had a lot of internal

1114
00:52:00,460 --> 00:52:04,280
staff discussions, certainly as as you've just seen,

1115
00:52:04,280 --> 00:52:07,869
breaking out the customer service operation from the water

1116
00:52:07,869 --> 00:52:11,199
front was was a result of some of those internal discussions

1117
00:52:11,199 --> 00:52:13,199
feedback that we've gotten in the past.

1118
00:52:13,199 --> 00:52:15,969
And so you'll see the impact of that today and very similar

1119
00:52:15,969 --> 00:52:18,199
to what we've done on the solid waste side.

1120
00:52:18,199 --> 00:52:20,199
We really looked at this operation.

1121
00:52:20,199 --> 00:52:24,599
We've also looked at the CIP program to make sure that that

1122
00:52:24,599 --> 00:52:28,199
those were in line and easily justifiable.

1123
00:52:28,199 --> 00:52:30,199
So I'm happy to present to you today.

1124
00:52:30,199 --> 00:52:33,199
Our proposed budget.

1125
00:52:33,199 --> 00:52:35,429
As you saw in your backup, we do have two options that we

1126
00:52:35,429 --> 00:52:37,699
want to discuss with you today and certainly get your

1127
00:52:37,699 --> 00:52:41,000
feedback and your direction on which option you you would

1128
00:52:41,000 --> 00:52:42,199
you would like for us to do.

1129
00:52:42,199 --> 00:52:47,199
You would like for us to continue to proceed with.

1130
00:52:47,199 --> 00:52:51,469
So, just briefly want to talk with you a little bit about

1131
00:52:51,469 --> 00:52:53,199
our customer base.

1132
00:52:53,199 --> 00:52:57,519
So as you can see, we've had a, you know, roughly a 2%

1133
00:52:57,519 --> 00:53:00,199
increase in our customer base.

1134
00:53:00,199 --> 00:53:04,460
And that goes to something very similar to what we see on

1135
00:53:04,460 --> 00:53:08,750
the population side. We've broken it out for you between

1136
00:53:08,750 --> 00:53:12,860
residential, commercial, wholesale. And so you can see that

1137
00:53:12,860 --> 00:53:14,199
the total growth has been around 2%.

1138
00:53:14,199 --> 00:53:18,570
2015 and 2016 we saw a little bit higher increase that we

1139
00:53:18,570 --> 00:53:21,590
had in the prior two years and certainly last year we

1140
00:53:21,590 --> 00:53:24,199
dropped back down to about 1.5%.

1141
00:53:24,199 --> 00:53:28,909
So, on average, it's been about a 2% growth in our in our

1142
00:53:28,909 --> 00:53:30,199
customers.

1143
00:53:30,199 --> 00:53:37,250
So, I wanted to kind of show you this this this chart here

1144
00:53:37,250 --> 00:53:44,610
and let me say that in the past, the department has brought

1145
00:53:44,610 --> 00:53:51,239
forward to the PB a separate presentation regarding

1146
00:53:51,239 --> 00:53:55,900
customer class and volume. What we've done this time just

1147
00:53:55,900 --> 00:53:57,150
for expediency purposes of we've kind of combined this

1148
00:53:57,150 --> 00:53:58,199
along with the financial trends.

1149
00:53:58,199 --> 00:54:00,699
We have both the loose field treatment plant and also the

1150
00:54:00,699 --> 00:54:04,469
Ray Roberts treatment plant. We have the green shaded area

1151
00:54:04,469 --> 00:54:09,570
represents the loose field treatment plant that's about 25

1152
00:54:09,570 --> 00:54:11,199
29.

1153
00:54:11,199 --> 00:54:16,389
And then we currently have the Ray Roberts, which is the

1154
00:54:16,389 --> 00:54:22,139
first shaded area that adds, I believe about 20 mgd based

1155
00:54:22,139 --> 00:54:27,469
on where our customer demand has been and where our

1156
00:54:27,469 --> 00:54:29,199
production has been.

1157
00:54:29,199 --> 00:54:33,570
This expansion about a 30 mgd expansion to the Ray Roberts

1158
00:54:33,570 --> 00:54:37,969
plant will come somewhere in 2027 when we talk to you a

1159
00:54:37,969 --> 00:54:42,199
little bit about our CIP program will talk to you about.

1160
00:54:42,199 --> 00:54:45,769
We've already started to make plans within the five year C

1161
00:54:45,769 --> 00:54:49,769
IP plan for a $9 million design of that expansion. Again,

1162
00:54:49,769 --> 00:54:53,869
with all these programs will continue to evaluate those as

1163
00:54:53,869 --> 00:54:55,199
we move forward.

1164
00:54:55,199 --> 00:54:58,369
Our production levels have been what our demand is from our

1165
00:54:58,369 --> 00:55:02,650
customers. As you can see, we have a couple of outliers

1166
00:55:02,650 --> 00:55:07,130
here over the last two years where we've actually seen a

1167
00:55:07,130 --> 00:55:10,199
decrease in our peak water usage.

1168
00:55:10,199 --> 00:55:14,469
But again, we continue to budget basically what's

1169
00:55:14,469 --> 00:55:19,579
considered a normal year. That's the blue trend line. The

1170
00:55:19,579 --> 00:55:24,329
red trend line is a dry year. The green trend line is a wet

1171
00:55:24,329 --> 00:55:28,840
year. And so we budget based on a normal year for

1172
00:55:28,840 --> 00:55:31,199
production purposes.

1173
00:55:31,199 --> 00:55:34,250
One of the water assumptions, some of the assumptions that

1174
00:55:34,250 --> 00:55:37,159
have gone into this forecast is that all rates are based on

1175
00:55:37,159 --> 00:55:40,010
cost of service. We do have a cost of service rate model

1176
00:55:40,010 --> 00:55:41,199
that we utilize.

1177
00:55:41,199 --> 00:55:46,230
We maintain a debt service coverage ratio of 1.25% or

1178
00:55:46,230 --> 00:55:49,829
higher. That's a standard that's utilized by most bond

1179
00:55:49,829 --> 00:55:53,130
rating agencies, but it's also part of our debt policy for

1180
00:55:53,130 --> 00:55:56,590
our utilities is to maintain that, maintain that not just

1181
00:55:56,590 --> 00:56:00,199
as a utility system, but for each individual utility.

1182
00:56:00,199 --> 00:56:03,659
We have standard targets that we've had historically here

1183
00:56:03,659 --> 00:56:07,309
at the City of Denton. 100% revenue funding of our

1184
00:56:07,309 --> 00:56:11,539
distribution system replacements, 25% revenue funding, and

1185
00:56:11,539 --> 00:56:15,269
75% debt funding of any treatment plant infrastructure

1186
00:56:15,269 --> 00:56:19,199
expansion primarily or just infrastructure.

1187
00:56:19,199 --> 00:56:23,059
And then our target has been on the reserve side on the

1188
00:56:23,059 --> 00:56:27,550
operating reserve, 33% to 50%. This is a customary tool

1189
00:56:27,550 --> 00:56:31,329
that's used when you have a range of targets to allow you

1190
00:56:31,329 --> 00:56:36,199
flexibility and that way, you know, there's a floor of 33%,

1191
00:56:36,199 --> 00:56:41,179
but it can be as high as 50% and we manage to those targets

1192
00:56:41,179 --> 00:56:45,199
, about 120 to 180 day range.

1193
00:56:45,199 --> 00:56:48,570
Also, the last two pieces here, multi-year financial

1194
00:56:48,570 --> 00:56:52,480
planning to minimize rate increases. If you recall for last

1195
00:56:52,480 --> 00:56:56,139
year's presentation, there was an assumed 2% increase in

1196
00:56:56,139 --> 00:56:59,869
rates for the five-year plan. In both scenarios that we

1197
00:56:59,869 --> 00:57:03,199
have for you today, those have been eliminated.

1198
00:57:03,199 --> 00:57:07,039
And, you know, some of that has to do with the fact that we

1199
00:57:07,039 --> 00:57:10,880
've pulled out this customer service operation that was

1200
00:57:10,880 --> 00:57:14,869
building on top of that reserve that it won't do that now.

1201
00:57:14,869 --> 00:57:19,460
And then finally, rate revenue forecast is based on 145

1202
00:57:19,460 --> 00:57:21,199
gallons per customer per day.

1203
00:57:21,199 --> 00:57:24,469
So some cost containment strategies that we've utilized,

1204
00:57:24,469 --> 00:57:27,719
not just this year, but really, really starting last year

1205
00:57:27,719 --> 00:57:31,010
was to improve our debt service efficiency by balancing CIP

1206
00:57:31,010 --> 00:57:34,269
s and our cash flows, making sure that we're issuing debt,

1207
00:57:34,269 --> 00:57:37,690
that we're transferring money over to our capital program

1208
00:57:37,690 --> 00:57:41,389
as those projects are coming forward and we begin to enc

1209
00:57:41,389 --> 00:57:43,199
umber those funds.

1210
00:57:43,199 --> 00:57:47,469
We also include a assumed salary savings for just normal

1211
00:57:47,469 --> 00:57:51,800
attrition and turnover within our operation. We reduced

1212
00:57:51,800 --> 00:57:55,329
revenue funded capital in 19 by 2 million to level out the

1213
00:57:55,329 --> 00:57:58,159
five-year. And so we've tried to smooth that out on what we

1214
00:57:58,159 --> 00:58:00,199
're contributing to our capital program.

1215
00:58:00,199 --> 00:58:03,199
And then we removed customer service, as we've talked to

1216
00:58:03,199 --> 00:58:05,960
you already, from this budget to better reflect the

1217
00:58:05,960 --> 00:58:09,289
operating days and the reserves. The only piece that's now,

1218
00:58:09,289 --> 00:58:12,349
that's kept in the water fund is water's contributions and

1219
00:58:12,349 --> 00:58:16,469
expenditure to that internal service fund and that's

1220
00:58:16,469 --> 00:58:24,199
utilized to, as part of the calculation for the reserve.

1221
00:58:24,199 --> 00:58:27,340
Like every business and public enterprise that we have,

1222
00:58:27,340 --> 00:58:30,280
there are certain risks associated and so we wanted to

1223
00:58:30,280 --> 00:58:33,190
point those out for you just so that you know that we're

1224
00:58:33,190 --> 00:58:36,369
cognizant of these things and might be coming in the future

1225
00:58:36,369 --> 00:58:39,199
that might impact this financial forecast.

1226
00:58:39,199 --> 00:58:42,730
Raw water transmission lines costs, the Lewisville Dam

1227
00:58:42,730 --> 00:58:46,170
repair, that's an issue that you've heard in the paper

1228
00:58:46,170 --> 00:58:50,070
recently. Obviously I've already talked a little bit about

1229
00:58:50,070 --> 00:58:54,090
this 30MGD expansion for Ray Roberts that we'll continue to

1230
00:58:54,090 --> 00:58:55,199
evaluate.

1231
00:58:55,199 --> 00:59:00,039
It's currently outside of our planning window, other than

1232
00:59:00,039 --> 00:59:04,199
we have a $9 million plan design in 2022.

1233
00:59:04,199 --> 00:59:08,659
And another transmission line replacements funding is also

1234
00:59:08,659 --> 00:59:11,780
an issue that we need to be aware of. And then age and

1235
00:59:11,780 --> 00:59:14,679
condition of Lewisville pump station. And then finally we

1236
00:59:14,679 --> 00:59:19,199
do have a declining per capita water usage.

1237
00:59:19,199 --> 00:59:22,960
We've seen that over the last couple of years. We believe

1238
00:59:22,960 --> 00:59:26,409
that some of it, or a large part of it has to do with just

1239
00:59:26,409 --> 00:59:30,289
the fact that our customers have more efficient appliances

1240
00:59:30,289 --> 00:59:34,130
within their home, maybe a little bit more cognizant of the

1241
00:59:34,130 --> 00:59:36,199
water issues in the area.

1242
00:59:36,199 --> 00:59:39,949
So the two options that we wanted to talk to you about

1243
00:59:39,949 --> 00:59:44,260
today, and let me say that our recommendation to you today

1244
00:59:44,260 --> 00:59:48,079
is option one, but certainly if the PUB would like to

1245
00:59:48,079 --> 00:59:53,199
entertain option two, certainly that's your prerogative.

1246
00:59:53,199 --> 00:59:57,469
So option two does include a 2% rate decrease across the

1247
00:59:57,469 --> 01:00:01,449
entire system. We'll be coming back to you in a future

1248
01:00:01,449 --> 01:00:05,650
meeting to talk to you about what that means specifically

1249
01:00:05,650 --> 01:00:09,769
to each individual rate class as we model that within our

1250
01:00:09,769 --> 01:00:11,199
rate model.

1251
01:00:11,199 --> 01:00:15,820
And then option two, and so option one is an option two

1252
01:00:15,820 --> 01:00:20,550
that eliminates any future rate increases as well that

1253
01:00:20,550 --> 01:00:25,800
previously been included. Option two, basically this is a

1254
01:00:25,800 --> 01:00:28,989
no rate increase next year or any of the other four years

1255
01:00:28,989 --> 01:00:30,199
of the five year plan.

1256
01:00:30,199 --> 01:00:33,690
But what we've done is because there is additional reserves

1257
01:00:33,690 --> 01:00:37,269
or above the minimum reserve, we've increased the amount of

1258
01:00:37,269 --> 01:00:40,630
revenue funding capital and decreased the amount of debt

1259
01:00:40,630 --> 01:00:43,199
that we'll plan to issue in the future.

1260
01:00:43,199 --> 01:00:47,199
So those are option one, option two.

1261
01:00:47,199 --> 01:00:51,789
So just quickly, I wanted to walk you through our option

1262
01:00:51,789 --> 01:00:56,989
one forecast. As you can see here, we in this forecast, the

1263
01:00:56,989 --> 01:01:02,199
2% decrease in rate revenue, no increases in the future.

1264
01:01:02,199 --> 01:01:08,059
Our reserve target or our reserve ends at about 20.746

1265
01:01:08,059 --> 01:01:13,079
million, but yet that's still a little bit above where our

1266
01:01:13,079 --> 01:01:19,420
minimum range is about 15.5 million, maximum is 23. So

1267
01:01:19,420 --> 01:01:23,199
again, we're managing to that range.

1268
01:01:23,199 --> 01:01:27,630
If you look out in the out years, we stay pretty well above

1269
01:01:27,630 --> 01:01:32,139
each one of those, the minimums. And so we think this is a

1270
01:01:32,139 --> 01:01:35,199
good solid plan for the community.

1271
01:01:35,199 --> 01:01:42,199
Our debt service remains above 1.25 each year of the plan.

1272
01:01:42,199 --> 01:01:46,869
And so again, just wanted to just reiterate this plan is a

1273
01:01:46,869 --> 01:01:52,199
2% decrease for next year, no rate increases in the future.

1274
01:01:52,199 --> 01:01:57,239
Option two is the no rate changes. And again, as I

1275
01:01:57,239 --> 01:02:01,159
mentioned, what this plan does, it reduces the amount of

1276
01:02:01,159 --> 01:02:05,139
debt service that is planned to be issued going forward in

1277
01:02:05,139 --> 01:02:07,199
each of those last four years.

1278
01:02:07,199 --> 01:02:10,840
Now we evaluate, just so the board knows, we evaluate every

1279
01:02:10,840 --> 01:02:14,050
year where our CIP program is, and before we issue any

1280
01:02:14,050 --> 01:02:17,760
bonds, we make those decisions. The last two years, we've

1281
01:02:17,760 --> 01:02:20,760
not had to issue any debt for this utility and we'll

1282
01:02:20,760 --> 01:02:23,199
continue to do that as we go forward.

1283
01:02:23,199 --> 01:02:27,099
And so we'll only issue the debt when those projects are

1284
01:02:27,099 --> 01:02:28,199
ready to go.

1285
01:02:28,199 --> 01:02:32,530
And so within this plan, as I mentioned, it's a little bit

1286
01:02:32,530 --> 01:02:37,320
better as far as our operating reserves for fiscal year 19,

1287
01:02:37,320 --> 01:02:42,980
we're at about 18.4 million out to the final year of 2023,

1288
01:02:42,980 --> 01:02:45,199
18.8 million.

1289
01:02:45,199 --> 01:02:48,960
Again, each one of those years is well above the minimum

1290
01:02:48,960 --> 01:02:52,880
range for the financial forecast or for the targets that we

1291
01:02:52,880 --> 01:02:55,199
've established for this fund.

1292
01:02:55,199 --> 01:02:59,059
Some of the highlights for you, as you can see, this is a

1293
01:02:59,059 --> 01:03:02,539
breakdown and we've given you a three year history of where

1294
01:03:02,539 --> 01:03:06,199
those revenues have been by each individual class.

1295
01:03:06,199 --> 01:03:09,989
I will mention that the cost of service that you see here

1296
01:03:09,989 --> 01:03:14,449
for General Fund, electric, wastewater, and solid waste are

1297
01:03:14,449 --> 01:03:18,389
attributable to some of the management oversight that's

1298
01:03:18,389 --> 01:03:22,679
included in the water fund, our utility administration that

1299
01:03:22,679 --> 01:03:25,909
oversees some of these functions that are outside of this

1300
01:03:25,909 --> 01:03:26,199
fund.

1301
01:03:26,199 --> 01:03:30,449
And so there'll still be some revenues that are coming into

1302
01:03:30,449 --> 01:03:33,199
this fund to recover some of those costs.

1303
01:03:33,199 --> 01:03:38,099
Our budget highlights on the expenditure side, as you can

1304
01:03:38,099 --> 01:03:43,010
see, we do break these out by classification, you know,

1305
01:03:43,010 --> 01:03:47,199
heavy concentration here in our debt service.

1306
01:03:47,199 --> 01:03:51,469
And so we'll continue, like I mentioned, we'll continue to

1307
01:03:51,469 --> 01:03:55,429
evaluate that going forward, only issue the debt that we

1308
01:03:55,429 --> 01:03:59,199
actually need for the projects that are ready to go.

1309
01:03:59,199 --> 01:04:02,369
So currently, where our rates are for just wanted to give

1310
01:04:02,369 --> 01:04:05,469
you kind of a brief picture again, this is all subject to

1311
01:04:05,469 --> 01:04:06,199
change.

1312
01:04:06,199 --> 01:04:10,059
But our current rates is this yellow bar that's where we

1313
01:04:10,059 --> 01:04:14,699
currently are for a customer that's utilizing about 920,000

1314
01:04:14,699 --> 01:04:18,159
gallons per year on the residential side, with a 2%

1315
01:04:18,159 --> 01:04:22,199
decrease that slightly moves us to the left of that.

1316
01:04:22,199 --> 01:04:26,460
We anticipate that some of these comparable utilities will

1317
01:04:26,460 --> 01:04:30,199
likely be seeing increases in water rates this next year.

1318
01:04:30,199 --> 01:04:32,630
We've still not been able to confirm that they're still

1319
01:04:32,630 --> 01:04:34,199
also working on their budgets.

1320
01:04:34,199 --> 01:04:37,079
But as we get that information, we'll bring that back to

1321
01:04:37,079 --> 01:04:39,199
the PAB to let you know where they are.

1322
01:04:39,199 --> 01:04:40,199
Yes, ma'am.

1323
01:04:40,199 --> 01:04:44,199
Increases, did you mean decreases?

1324
01:04:44,199 --> 01:04:47,300
These comparable utilities will likely see increases in

1325
01:04:47,300 --> 01:04:48,199
their rates.

1326
01:04:48,199 --> 01:04:49,199
Increases, okay.

1327
01:04:49,199 --> 01:04:50,199
Yes, correct.

1328
01:04:50,199 --> 01:04:53,980
So with this proposed decrease, we'll actually be further

1329
01:04:53,980 --> 01:04:56,199
to the left of this comparison.

1330
01:04:56,199 --> 01:04:57,199
Good, thanks.

1331
01:04:57,199 --> 01:04:59,199
Yes, ma'am.

1332
01:04:59,199 --> 01:05:01,670
For a commercial customer, again, this is, again, the

1333
01:05:01,670 --> 01:05:02,199
impact.

1334
01:05:02,199 --> 01:05:05,110
Again, we'll need to put all this into our model and bring

1335
01:05:05,110 --> 01:05:07,769
that back to you to get you a better idea of where we're

1336
01:05:07,769 --> 01:05:09,199
actually going to be.

1337
01:05:09,199 --> 01:05:11,199
This assumes a 2% decrease.

1338
01:05:11,199 --> 01:05:15,769
Again, as this information becomes available for what these

1339
01:05:15,769 --> 01:05:20,199
utilities are going to be doing, we'll bring that back.

1340
01:05:20,199 --> 01:05:22,530
But likely this will continue to push us further to the

1341
01:05:22,530 --> 01:05:25,199
left where we are, even with our commercial customers.

1342
01:05:25,199 --> 01:05:30,860
And then finally, we show you a commercial customer with

1343
01:05:30,860 --> 01:05:36,199
200,000 gallons of usage per year.

1344
01:05:36,199 --> 01:05:40,199
So that wraps up my piece of the presentation.

1345
01:05:40,199 --> 01:05:41,829
We can either, if you have questions, we can go through

1346
01:05:41,829 --> 01:05:44,469
that now, or the department is going to come up and go

1347
01:05:44,469 --> 01:05:46,199
through their presentation.

1348
01:05:46,199 --> 01:05:49,199
But whatever you would like, yes, ma'am.

1349
01:05:49,199 --> 01:05:54,329
On personal services, I always look at actuals from prior

1350
01:05:54,329 --> 01:05:55,199
years.

1351
01:05:55,199 --> 01:06:01,800
Why are we going from roughly $6.8 million in actuals for

1352
01:06:01,800 --> 01:06:06,199
personal services to $8.85?

1353
01:06:06,199 --> 01:06:11,199
We don't have any FD counties in that.

1354
01:06:11,199 --> 01:06:14,199
We don't have any pre-staff in there, right?

1355
01:06:14,199 --> 01:06:16,199
Two?

1356
01:06:16,199 --> 01:06:18,199
No, some customer service.

1357
01:06:18,199 --> 01:06:41,199
We have a lot of salary savings in the previous years.

1358
01:06:41,199 --> 01:06:44,559
Each year in the past, we have a lot of turnover in salary

1359
01:06:44,559 --> 01:06:47,199
savings, so that's why they're lower.

1360
01:06:47,199 --> 01:06:50,699
We budget each year based on all the employees that we have

1361
01:06:50,699 --> 01:06:53,199
fully being there for the full year.

1362
01:06:53,199 --> 01:06:55,199
So there is a difference in that.

1363
01:06:55,199 --> 01:06:58,699
And we can get you how many positions were empty in the

1364
01:06:58,699 --> 01:07:01,199
previous years, if you'd like.

1365
01:07:01,199 --> 01:07:02,199
You answered the question.

1366
01:07:02,199 --> 01:07:03,199
Thank you.

1367
01:07:03,199 --> 01:07:04,199
Excellent.

1368
01:07:04,199 --> 01:07:06,900
That would be interesting to see, because I know we have

1369
01:07:06,900 --> 01:07:08,199
unfilled positions.

1370
01:07:08,199 --> 01:07:12,199
We budget for them, but they go unfilled.

1371
01:07:12,199 --> 01:07:16,469
So if we're actually getting to what the actual filled

1372
01:07:16,469 --> 01:07:19,199
positions would be, is that what we're saying?

1373
01:07:19,199 --> 01:07:20,199
Correct.

1374
01:07:20,199 --> 01:07:22,750
And what we can do is, with the other question that was

1375
01:07:22,750 --> 01:07:26,039
asked on customer service, we can bring that back to the P

1376
01:07:26,039 --> 01:07:28,199
AB and show you what that trend has been.

1377
01:07:28,199 --> 01:07:29,199
Okay.

1378
01:07:29,199 --> 01:07:31,199
Okay.

1379
01:07:31,199 --> 01:07:33,199
Other questions?

1380
01:07:33,199 --> 01:07:34,199
I had a question.

1381
01:07:34,199 --> 01:07:38,920
To me, it seems, just looking at the two options, it seems

1382
01:07:38,920 --> 01:07:45,869
counterintuitive that you'd have a rate decrease and have

1383
01:07:45,869 --> 01:07:50,199
less net loss than you would.

1384
01:07:50,199 --> 01:07:53,230
But I just want to point out that it looks like it's coming

1385
01:07:53,230 --> 01:07:55,199
out of revenue-funded capital.

1386
01:07:55,199 --> 01:07:59,000
The no rate increase, there's more revenue-funded capital

1387
01:07:59,000 --> 01:08:00,199
in that number.

1388
01:08:00,199 --> 01:08:01,199
That's correct.

1389
01:08:01,199 --> 01:08:02,199
Is that correct?

1390
01:08:02,199 --> 01:08:04,199
Correct.

1391
01:08:04,199 --> 01:08:06,760
Again, the plan would be to issue less debt and revenue

1392
01:08:06,760 --> 01:08:08,199
fund more of that capital.

1393
01:08:08,199 --> 01:08:09,199
Right.

1394
01:08:09,199 --> 01:08:14,239
And also, on the 145-gallon per customer per day, I know it

1395
01:08:14,239 --> 01:08:16,199
's been trending down.

1396
01:08:16,199 --> 01:08:18,199
You said it was a two-year trend.

1397
01:08:18,199 --> 01:08:21,199
I don't know if two years is a trend.

1398
01:08:21,199 --> 01:08:25,199
It could be just a phenomenon.

1399
01:08:25,199 --> 01:08:35,789
But looking at the wet years versus dry years, it's hard to

1400
01:08:35,789 --> 01:08:42,390
look at it 12 months because you may get rain in certain

1401
01:08:42,390 --> 01:08:45,659
times of the year when you expect your water usage to be up

1402
01:08:45,659 --> 01:08:47,199
and you didn't use it.

1403
01:08:47,199 --> 01:08:55,569
And so I think that's what we saw. We had an extremely wet

1404
01:08:55,569 --> 01:08:56,199
year before last, and it was down.

1405
01:08:56,199 --> 01:09:01,229
But then not as quite a wet year, almost a normal year, and

1406
01:09:01,229 --> 01:09:03,199
it was down as well.

1407
01:09:03,199 --> 01:09:07,460
And it's not so much the amount of rain, it's the timing of

1408
01:09:07,460 --> 01:09:09,199
when the rain happens.

1409
01:09:09,199 --> 01:09:13,060
I will tell you, and I do have that here for you, the

1410
01:09:13,060 --> 01:09:18,199
gallons per customer per day in 2013 was about 158.

1411
01:09:18,199 --> 01:09:21,199
In 2014, it went down to 138.

1412
01:09:21,199 --> 01:09:23,199
2015, 140.

1413
01:09:23,199 --> 01:09:25,199
2016, 140.

1414
01:09:25,199 --> 01:09:28,199
2017, 134.

1415
01:09:28,199 --> 01:09:33,199
We're estimating 142 for this year.

1416
01:09:33,199 --> 01:09:36,199
And so that is something that we're cognizant of.

1417
01:09:36,199 --> 01:09:39,180
Again, Mr. Chairman, I'm not sure that three years, four

1418
01:09:39,180 --> 01:09:42,390
years is a trend, but it's certainly something we're aware

1419
01:09:42,390 --> 01:09:45,069
of and it's something that we may need to take action

1420
01:09:45,069 --> 01:09:46,199
before too long.

1421
01:09:46,199 --> 01:09:49,140
So it is something we're aware of. It's something that we

1422
01:09:49,140 --> 01:09:50,199
do track.

1423
01:09:50,199 --> 01:09:53,380
>> I would just add, Mr. Chairman, on page six, the water,

1424
01:09:53,380 --> 01:09:56,390
the future risks and mitigation, this is something I

1425
01:09:56,390 --> 01:09:58,199
promised him I'd bring up.

1426
01:09:58,199 --> 01:10:03,520
But these are all huge costs. It's something that we manage

1427
01:10:03,520 --> 01:10:07,420
the reserves very closely. We're trying to be as customer

1428
01:10:07,420 --> 01:10:09,199
friendly as we can in terms of our needs.

1429
01:10:09,199 --> 01:10:11,199
We're asking for what we need at this point.

1430
01:10:11,199 --> 01:10:14,119
But there's a lot of large projects out there that are

1431
01:10:14,119 --> 01:10:17,319
requiring several years of advanced planning in terms of

1432
01:10:17,319 --> 01:10:19,199
when we're issuing the debt.

1433
01:10:19,199 --> 01:10:21,399
So I think it's just always something you're pointing out

1434
01:10:21,399 --> 01:10:23,199
the volatility of funding, you're right.

1435
01:10:23,199 --> 01:10:25,970
And there's also some definite risks out there that are

1436
01:10:25,970 --> 01:10:28,779
high dollar ones that we just want to make sure everybody

1437
01:10:28,779 --> 01:10:30,199
is completely aware of.

1438
01:10:30,199 --> 01:10:32,199
>> Okay.

1439
01:10:32,199 --> 01:10:34,199
>> Any questions?

1440
01:10:34,199 --> 01:10:38,199
>> I have a question. Maybe I'm looking at this wrong.

1441
01:10:38,199 --> 01:10:44,800
But under option one on the budget, 2% rate decrease and we

1442
01:10:44,800 --> 01:10:51,399
're showing plan, am I looking at this right, the revenue of

1443
01:10:51,399 --> 01:10:54,199
43.128?

1444
01:10:54,199 --> 01:10:57,199
>> The 2% is actually for fiscal year '19.

1445
01:10:57,199 --> 01:10:58,199
>> Okay.

1446
01:10:58,199 --> 01:11:04,199
>> Yeah. So the total revenue there is 44.9 million.

1447
01:11:04,199 --> 01:11:10,199
>> Okay. Versus the 45 if you had no rate change.

1448
01:11:10,199 --> 01:11:13,199
>> Yes, versus 45 and option two.

1449
01:11:13,199 --> 01:11:14,199
>> Okay. Thank you.

1450
01:11:14,199 --> 01:11:15,199
>> Yes, sir.

1451
01:11:15,199 --> 01:11:18,380
>> And I would just add to the questions that have been

1452
01:11:18,380 --> 01:11:20,199
asked about the decrease.

1453
01:11:20,199 --> 01:11:23,279
The other thing we're really trying to do is not add to the

1454
01:11:23,279 --> 01:11:24,199
debt burden.

1455
01:11:24,199 --> 01:11:29,039
It's very obvious in 2023, 2024, when that next expansion

1456
01:11:29,039 --> 01:11:32,739
becomes necessary to plan for it, you know, we're trying to

1457
01:11:32,739 --> 01:11:34,199
create some room.

1458
01:11:34,199 --> 01:11:36,399
So to the extent that we've got additional reserves right

1459
01:11:36,399 --> 01:11:38,199
now, we can pay for revenue funded capital.

1460
01:11:38,199 --> 01:11:39,199
We're doing that.

1461
01:11:39,199 --> 01:11:41,829
But we're very concerned about how can we retire as much

1462
01:11:41,829 --> 01:11:44,479
debt before we're going to have to, you know, bring on

1463
01:11:44,479 --> 01:11:46,199
additional debt for that next plan expansion.

1464
01:11:46,199 --> 01:11:52,199
So that really is driving most of our mindset right now.

1465
01:11:52,199 --> 01:11:54,649
>> I'll go ahead and ask Dr. Banks will come up here and he

1466
01:11:54,649 --> 01:11:57,060
'll walk you through kind of the departmental section of

1467
01:11:57,060 --> 01:11:58,199
this presentation.

1468
01:11:58,199 --> 01:11:59,199
Yes, ma'am.

1469
01:11:59,199 --> 01:12:04,409
>> I just wanted to say just to point out first that I

1470
01:12:04,409 --> 01:12:10,529
applaud the proposed rate decrease and it's good news to

1471
01:12:10,529 --> 01:12:15,199
hear about the reduction in per capita water usage.

1472
01:12:15,199 --> 01:12:19,470
And as you mentioned, you know, that part of the cause or

1473
01:12:19,470 --> 01:12:23,560
maybe most of it is due to just improvements in technology

1474
01:12:23,560 --> 01:12:26,199
that don't waste as much water.

1475
01:12:26,199 --> 01:12:31,119
But it's also the case that water has a rate structure that

1476
01:12:31,119 --> 01:12:36,010
encourages conservation by just by default, by having a

1477
01:12:36,010 --> 01:12:39,920
higher rate for commercial and a lower rate for residential

1478
01:12:39,920 --> 01:12:40,199
.

1479
01:12:40,199 --> 01:12:44,750
And I have always liked that and I have always thought that

1480
01:12:44,750 --> 01:12:49,560
, you know, wanted to see that policy at least explored with

1481
01:12:49,560 --> 01:12:52,199
our electric company as well.

1482
01:12:52,199 --> 01:12:56,460
I was wondering one question I had regarding that is, you

1483
01:12:56,460 --> 01:13:01,430
know, to your knowledge, have there ever been complaints

1484
01:13:01,430 --> 01:13:06,409
from commercial customers that, you know, what about why do

1485
01:13:06,409 --> 01:13:09,199
residents pay less than we do?

1486
01:13:09,199 --> 01:13:12,560
Not to my knowledge. I'm looking at Dr. Banks. No, not to

1487
01:13:12,560 --> 01:13:13,199
our knowledge.

1488
01:13:13,199 --> 01:13:17,460
Okay. Well, and that's that's wonderful to hear. So anyway,

1489
01:13:17,460 --> 01:13:18,199
thank you.

1490
01:13:18,199 --> 01:13:23,310
Morning board members, Kenny Banks, general manager of

1491
01:13:23,310 --> 01:13:28,750
utilities. I'm here to give the departmental presentation

1492
01:13:28,750 --> 01:13:34,470
component of the water utilities presentation. I appreciate

1493
01:13:34,470 --> 01:13:39,199
the opportunity to bring this information to you.

1494
01:13:39,199 --> 01:13:42,829
We'll talk a little bit about our accomplishments to start

1495
01:13:42,829 --> 01:13:47,029
out with for 1718. We started our five year update of the

1496
01:13:47,029 --> 01:13:49,199
water wastewater impact fees.

1497
01:13:49,199 --> 01:13:52,229
We're currently working with the capital improvements

1498
01:13:52,229 --> 01:13:55,390
advisory committee, which is a group that is put together

1499
01:13:55,390 --> 01:13:57,199
to review those impact fees.

1500
01:13:57,199 --> 01:14:00,689
Initially, we will be bringing those back to you later this

1501
01:14:00,689 --> 01:14:01,199
year.

1502
01:14:01,199 --> 01:14:04,729
We started the 25 year water distribution master plan. We

1503
01:14:04,729 --> 01:14:08,020
completed a preliminary design for solids handling for the

1504
01:14:08,020 --> 01:14:11,100
Louisville water treatment plant and we're moving into

1505
01:14:11,100 --> 01:14:12,199
final design.

1506
01:14:12,199 --> 01:14:16,010
Very important project for us. The solids handling there

1507
01:14:16,010 --> 01:14:19,770
has become a bit of a challenge and and this will allow us

1508
01:14:19,770 --> 01:14:23,869
to more effectively dewater the solids and will also help

1509
01:14:23,869 --> 01:14:26,199
out on the wastewater side as well.

1510
01:14:26,199 --> 01:14:31,199
We completed the Lake Louisville buoy installation project.

1511
01:14:31,199 --> 01:14:35,260
This is the buoy line that goes in on the what is known as

1512
01:14:35,260 --> 01:14:38,199
the party cove on Lake Louisville.

1513
01:14:38,199 --> 01:14:42,470
Basically where the intake structure is on right there by

1514
01:14:42,470 --> 01:14:44,199
the I 35 bridge.

1515
01:14:44,199 --> 01:14:48,199
We, I'm sorry.

1516
01:14:48,199 --> 01:14:53,130
We completed a chlorine boosting facility at the South

1517
01:14:53,130 --> 01:14:58,329
waste elevated storage tower. This is the storage tower

1518
01:14:58,329 --> 01:15:03,199
that is on the lively road that is supplying the Rose Ranch

1519
01:15:03,199 --> 01:15:04,199
community.

1520
01:15:04,199 --> 01:15:07,289
It's far out in the system and and bit of a challenge to

1521
01:15:07,289 --> 01:15:10,659
deal with with regards to turnover in the water at the tank

1522
01:15:10,659 --> 01:15:14,100
during certain times of the year or so an important project

1523
01:15:14,100 --> 01:15:17,319
to get get in there and and make sure the water quality is

1524
01:15:17,319 --> 01:15:21,199
as high as it could possibly be in that facility.

1525
01:15:21,199 --> 01:15:24,829
We did also complete our water distribution projects in

1526
01:15:24,829 --> 01:15:28,920
advance of the plan bond funded street reconstruction work.

1527
01:15:28,920 --> 01:15:32,010
This is a very important issue for both water and

1528
01:15:32,010 --> 01:15:36,020
wastewater to get in there, evaluate those lines, make sure

1529
01:15:36,020 --> 01:15:39,199
that if a street project is going in.

1530
01:15:39,199 --> 01:15:41,890
Those lines need to be replaced based on our asset

1531
01:15:41,890 --> 01:15:45,069
management or condition assessments. We want to get in

1532
01:15:45,069 --> 01:15:48,029
there and get those done as a part of that construction

1533
01:15:48,029 --> 01:15:51,199
process so that we are as cost effective as we can be.

1534
01:15:51,199 --> 01:15:55,960
And also, so we only disturb the neighborhood or inconven

1535
01:15:55,960 --> 01:15:58,199
ience to citizens one time.

1536
01:15:58,199 --> 01:16:02,090
Some goals that we have coming up for the upcoming year is

1537
01:16:02,090 --> 01:16:06,069
to complete our five year update of our wastewater impact

1538
01:16:06,069 --> 01:16:10,430
fee study complete the 25 year water distribution master

1539
01:16:10,430 --> 01:16:11,199
plan.

1540
01:16:11,199 --> 01:16:14,140
We are currently in process of working on our 10 year

1541
01:16:14,140 --> 01:16:17,159
utility management study item was brought to you as a work

1542
01:16:17,159 --> 01:16:18,199
session item.

1543
01:16:18,199 --> 01:16:20,199
A few meetings back on that.

1544
01:16:20,199 --> 01:16:23,470
This is a charter requirement and we're actively working on

1545
01:16:23,470 --> 01:16:24,199
that now.

1546
01:16:24,199 --> 01:16:27,430
We're beginning construction of the Lake Louisville water

1547
01:16:27,430 --> 01:16:30,539
treatment plant phase two rehabilitation and the solids

1548
01:16:30,539 --> 01:16:34,010
handling projects so design was done last year we're moving

1549
01:16:34,010 --> 01:16:38,029
into the actual treatment, our actual implementation of

1550
01:16:38,029 --> 01:16:41,199
that treatment plant project.

1551
01:16:41,199 --> 01:16:44,729
This is a big project. It has a lot of moving parts. A lot

1552
01:16:44,729 --> 01:16:48,100
of it is related to our our switch gear and our pump motor

1553
01:16:48,100 --> 01:16:51,579
system that's out there that needs to be rehabilitated is

1554
01:16:51,579 --> 01:16:55,199
going to involve the construction of a of a new building

1555
01:16:55,199 --> 01:17:00,529
out there that will house our skater system and some of the

1556
01:17:00,529 --> 01:17:02,199
technology necessary to run the plant.

1557
01:17:02,199 --> 01:17:06,859
And then also it will involve some rehabilitation of some

1558
01:17:06,859 --> 01:17:11,500
of the treatment technologies there at the plant. We are

1559
01:17:11,500 --> 01:17:14,199
going to complete the Ray Roberts treatment plan and

1560
01:17:14,199 --> 01:17:17,050
equipment assessment move into final design for plant

1561
01:17:17,050 --> 01:17:18,199
rehabilitation.

1562
01:17:18,199 --> 01:17:23,920
As Tony mentioned earlier that that plant right now is a 20

1563
01:17:23,920 --> 01:17:29,510
million gallon per day plant. It's designed in four phases

1564
01:17:29,510 --> 01:17:34,119
it can go up to 100 M.G.D. and basically it's designed to

1565
01:17:34,119 --> 01:17:37,590
go 20 30 for the first phase and then 20 30 for the second

1566
01:17:37,590 --> 01:17:38,199
phase.

1567
01:17:38,199 --> 01:17:41,369
So as we move into the project of doing the 30 M.G.D.

1568
01:17:41,369 --> 01:17:44,329
expansion that's right on the outside of our five year CIP

1569
01:17:44,329 --> 01:17:47,270
right now we want to be sure that we have rehabilitated and

1570
01:17:47,270 --> 01:17:51,470
assess the 20 M.G.D. so it's in good shape prior to moving

1571
01:17:51,470 --> 01:17:53,199
into that 30 M.G.D. expansion.

1572
01:17:53,199 --> 01:17:56,770
So this is part of that project. We are implementing a

1573
01:17:56,770 --> 01:18:00,539
water info master program basically a computer assisted

1574
01:18:00,539 --> 01:18:04,460
decision making program for our water line infrastructure

1575
01:18:04,460 --> 01:18:08,029
replacements just to help us be even more efficient and

1576
01:18:08,029 --> 01:18:11,800
have a better understanding of our assets so that we can do

1577
01:18:11,800 --> 01:18:14,420
a better job coordinating with the streets department and

1578
01:18:14,420 --> 01:18:18,199
wastewater department on those service replacements.

1579
01:18:18,199 --> 01:18:22,060
So our budget emphasis is really about water system

1580
01:18:22,060 --> 01:18:25,460
reliability and sustainability. We want to be sure that our

1581
01:18:25,460 --> 01:18:28,039
we plan and implement for replacements of our aging

1582
01:18:28,039 --> 01:18:31,149
infrastructure around the city and then certainly plan and

1583
01:18:31,149 --> 01:18:34,470
implement our capital improvement programs to support the

1584
01:18:34,470 --> 01:18:37,199
community growth that we anticipate.

1585
01:18:37,199 --> 01:18:40,000
A couple of process improvements that we're we've

1586
01:18:40,000 --> 01:18:43,380
implemented and some that we're looking at we've converted

1587
01:18:43,380 --> 01:18:46,109
from paper map books to digital systems for water

1588
01:18:46,109 --> 01:18:49,199
distribution which has made the infield work a lot more

1589
01:18:49,199 --> 01:18:50,199
effective.

1590
01:18:50,199 --> 01:18:55,039
We're more effectively integrating and using our geographic

1591
01:18:55,039 --> 01:18:59,340
information systems and our computer maintenance and

1592
01:18:59,340 --> 01:19:04,000
programs for software to basically plan and prioritize our

1593
01:19:04,000 --> 01:19:08,770
water distribution line replacements and coordinate again

1594
01:19:08,770 --> 01:19:11,199
with the streets department.

1595
01:19:11,199 --> 01:19:14,510
It's all about trying to make that as quick as we possibly

1596
01:19:14,510 --> 01:19:17,789
can and as coordinated as possibly as we possibly can so

1597
01:19:17,789 --> 01:19:21,279
that we don't implement any delays throughout that entire

1598
01:19:21,279 --> 01:19:22,199
process.

1599
01:19:22,199 --> 01:19:24,819
So future process improvements are to improve our

1600
01:19:24,819 --> 01:19:27,829
efficiency and cost effectiveness on our water main line

1601
01:19:27,829 --> 01:19:30,890
replacements develop a permanent system for handling and

1602
01:19:30,890 --> 01:19:33,869
disposing of solids as I've said solids have become a bit

1603
01:19:33,869 --> 01:19:36,199
of a challenge at the Louisville plant.

1604
01:19:36,199 --> 01:19:39,010
We are currently using a temporary fix which is a large

1605
01:19:39,010 --> 01:19:42,029
pond system out there that allows the solids to settle and

1606
01:19:42,029 --> 01:19:44,199
then we decant the water off the top.

1607
01:19:44,199 --> 01:19:48,609
We need to move to a permanent solution of dewatering those

1608
01:19:48,609 --> 01:19:52,569
solids and then just continuing to improve our asset

1609
01:19:52,569 --> 01:19:54,199
management program.

1610
01:19:54,199 --> 01:19:56,199
Position summary real quick.

1611
01:19:56,199 --> 01:20:08,500
A couple of things about this. We have added two positions

1612
01:20:08,500 --> 01:20:11,340
basically a deputy director position for water wastewater

1613
01:20:11,340 --> 01:20:14,010
that's currently unfilled and we have consolidated the

1614
01:20:14,010 --> 01:20:16,430
water and wastewater crews under a single water and

1615
01:20:16,430 --> 01:20:19,199
wastewater superintendents so the water and wastewater

1616
01:20:19,199 --> 01:20:22,199
superintendent position is a new position.

1617
01:20:22,199 --> 01:20:26,460
So we've added those two and then we had a halftime admin

1618
01:20:26,460 --> 01:20:30,579
position that we actually removed from the budget so that's

1619
01:20:30,579 --> 01:20:36,420
the difference between the 102 and the 103.5 that you see

1620
01:20:36,420 --> 01:20:39,199
in the in this position summary.

1621
01:20:39,199 --> 01:20:48,029
A couple of other things that we've done kind of a small

1622
01:20:48,029 --> 01:20:56,340
version of what you saw with customer service. We have a

1623
01:20:56,340 --> 01:20:57,000
group called the field service technical group that had

1624
01:20:57,000 --> 01:20:59,199
employees that were co that were funded from both the water

1625
01:20:59,199 --> 01:21:02,199
fun and the wastewater fun.

1626
01:21:02,199 --> 01:21:05,840
The majority of that group resides in the wastewater funds

1627
01:21:05,840 --> 01:21:09,590
and what we've done is we've actually moved those positions

1628
01:21:09,590 --> 01:21:13,090
to be completely under the wastewater fun and then we're

1629
01:21:13,090 --> 01:21:16,670
going to handle the work that those positions do for water

1630
01:21:16,670 --> 01:21:18,199
simply by a transfer.

1631
01:21:18,199 --> 01:21:22,449
We are adding electronic tech to provide maintenance of the

1632
01:21:22,449 --> 01:21:26,069
new equipment that is related to the ozone system at Lake

1633
01:21:26,069 --> 01:21:27,199
Louisville.

1634
01:21:27,199 --> 01:21:31,470
We have a lot of instrumentation there chemical control

1635
01:21:31,470 --> 01:21:35,810
turbidity analyzers chlorine analyzers etc. So that

1636
01:21:35,810 --> 01:21:38,199
position is being added.

1637
01:21:38,199 --> 01:21:43,140
Five year capital improvement plan just to kind of hit the

1638
01:21:43,140 --> 01:21:45,199
highlights on this.

1639
01:21:45,199 --> 01:21:48,430
You will have a lot more detail when you get the full

1640
01:21:48,430 --> 01:21:52,029
budget books on this and one of the things that I wanted to

1641
01:21:52,029 --> 01:21:55,409
to point out on this is kind of how you work through the

1642
01:21:55,409 --> 01:21:58,199
five year CIP plan in the budget book.

1643
01:21:58,199 --> 01:22:02,750
So you'll notice over on the left hand side there are group

1644
01:22:02,750 --> 01:22:07,619
assignment numbers and then those assignments numbers have

1645
01:22:07,619 --> 01:22:12,100
a particular category associated with them. So those

1646
01:22:12,100 --> 01:22:16,319
categories are some in this five year CIP plan. But as you

1647
01:22:16,319 --> 01:22:18,770
go into the individual groups you can actually see detailed

1648
01:22:18,770 --> 01:22:21,199
sheets for each one of those in the full budget.

1649
01:22:21,199 --> 01:22:24,649
So when the full budget group book gets to you you'll be

1650
01:22:24,649 --> 01:22:28,340
able to go through the capital improvement section on a on

1651
01:22:28,340 --> 01:22:31,720
a home business unit basis and actually see each one of

1652
01:22:31,720 --> 01:22:35,199
these five year CIP plans by their group assignment number.

1653
01:22:35,199 --> 01:22:38,270
So it kind of helps you see what we're doing in each one of

1654
01:22:38,270 --> 01:22:42,170
the individual departments. We've got a very aggressive

1655
01:22:42,170 --> 01:22:46,199
plan as you can you can see a lot of moving parts there.

1656
01:22:46,199 --> 01:22:49,449
We've broken it out here in terms of the grand total and

1657
01:22:49,449 --> 01:22:52,489
the amount that we anticipate right now in terms of

1658
01:22:52,489 --> 01:22:56,199
required bond sales for each of the years going forward.

1659
01:22:56,199 --> 01:23:00,069
As Tony mentioned earlier we're going to continue to look

1660
01:23:00,069 --> 01:23:03,970
at our existing funding and of course always try to reduce

1661
01:23:03,970 --> 01:23:06,199
those bond sales when we can.

1662
01:23:06,199 --> 01:23:11,260
I asked Lori to include the group assignment numbers on

1663
01:23:11,260 --> 01:23:16,420
these major CIP projects that I've listed for you. So you

1664
01:23:16,420 --> 01:23:19,199
'll see the numbers over here to the to the side.

1665
01:23:19,199 --> 01:23:23,890
And basically these are some of our major projects that we

1666
01:23:23,890 --> 01:23:29,010
've got coming up with the associated timeline with each one

1667
01:23:29,010 --> 01:23:29,199
.

1668
01:23:29,199 --> 01:23:32,689
Just real quick the North South Phase 3 big project that we

1669
01:23:32,689 --> 01:23:35,989
've got going on about thirty nine hundred linear feet of

1670
01:23:35,989 --> 01:23:39,609
forty two inch transmission main along Bonnie Bray that

1671
01:23:39,609 --> 01:23:44,199
runs all the way from I-35 to scripture.

1672
01:23:44,199 --> 01:23:47,460
The all red system is one that we've had on the books for

1673
01:23:47,460 --> 01:23:51,319
quite for quite a while. It's a twenty four and thirty inch

1674
01:23:51,319 --> 01:23:53,199
water transmission line.

1675
01:23:53,199 --> 01:23:57,470
Design is anticipated to be completed by the middle of June

1676
01:23:57,470 --> 01:24:01,109
and right away acquisition completed by the end of

1677
01:24:01,109 --> 01:24:02,199
September.

1678
01:24:02,199 --> 01:24:05,199
We hope to move into construction by January of next year.

1679
01:24:05,199 --> 01:24:08,609
The solids handling we've we've talked about Ray Roberts

1680
01:24:08,609 --> 01:24:10,199
performance upgrade.

1681
01:24:10,199 --> 01:24:14,079
We've talked about basically getting that system in line in

1682
01:24:14,079 --> 01:24:16,199
anticipation of the expansion.

1683
01:24:16,199 --> 01:24:20,100
Basically the Riney Road Booster pump station is a pump

1684
01:24:20,100 --> 01:24:24,279
station that is needed for capacity to serve the North Dent

1685
01:24:24,279 --> 01:24:25,199
on area.

1686
01:24:25,199 --> 01:24:29,470
The raw transmission line to is part of our line assessment

1687
01:24:29,470 --> 01:24:33,470
for our big transmission assets that are moving from the

1688
01:24:33,470 --> 01:24:38,149
Lake Louisville pump station to the Spencer plant treatment

1689
01:24:38,149 --> 01:24:39,199
facility.

1690
01:24:39,199 --> 01:24:42,829
And so we're in process right now. We've completed the

1691
01:24:42,829 --> 01:24:46,199
first phase of repairs on the 30 inch line.

1692
01:24:46,199 --> 01:24:49,420
This is a dual line system a 30 inch and a twenty seven. We

1693
01:24:49,420 --> 01:24:54,850
will complete the 30 inch next year and then we will start

1694
01:24:54,850 --> 01:24:58,739
moving into the second phase of the project which is to

1695
01:24:58,739 --> 01:25:00,199
look at the twenty seven inch.

1696
01:25:00,199 --> 01:25:02,970
We're timing this because we have to be water those systems

1697
01:25:02,970 --> 01:25:05,689
. We've got to bring it back online during the summertime to

1698
01:25:05,689 --> 01:25:07,199
handle the irrigation needs.

1699
01:25:07,199 --> 01:25:16,479
Disinfection conversion for the raw water are the Ray

1700
01:25:16,479 --> 01:25:20,659
Roberts water treatment plant is basically to take a

1701
01:25:20,659 --> 01:25:25,010
convert a gas based system for your chlorine to a liquid

1702
01:25:25,010 --> 01:25:29,199
base much safer much easier to control.

1703
01:25:29,199 --> 01:25:33,060
And then we've got the design of Ray Roberts coming up get

1704
01:25:33,060 --> 01:25:36,659
the design out of the out of the way first for that nine

1705
01:25:36,659 --> 01:25:40,399
million dollars and then make our plans for when we're

1706
01:25:40,399 --> 01:25:44,189
going to actually implement the construction phase

1707
01:25:44,189 --> 01:25:47,670
condition assessment of the southwest and east side

1708
01:25:47,670 --> 01:25:49,199
transmission lines.

1709
01:25:49,199 --> 01:25:52,039
A lot of our transmission assets are are getting relatively

1710
01:25:52,039 --> 01:25:54,680
old and start with. So we're starting to take a look at

1711
01:25:54,680 --> 01:25:57,430
some of the larger ones and doing condition assessments to

1712
01:25:57,430 --> 01:26:00,199
see what shape they're in and then plan accordingly.

1713
01:26:00,199 --> 01:26:03,539
And then the Louisville Dam safety modifications are

1714
01:26:03,539 --> 01:26:07,170
basically just our payment to the Corps of Engineer for the

1715
01:26:07,170 --> 01:26:10,819
repair work that's going on for Louisville Dam big project

1716
01:26:10,819 --> 01:26:14,319
that's estimated at a 15 million dollar total we're

1717
01:26:14,319 --> 01:26:18,000
programming and three point seven five million on a yearly

1718
01:26:18,000 --> 01:26:20,199
basis for the next four years.

1719
01:26:20,199 --> 01:26:24,060
I have provided a map in your presentation that goes

1720
01:26:24,060 --> 01:26:27,880
through each one of these major projects and got them

1721
01:26:27,880 --> 01:26:32,010
listed by the individual year color coded so you can kind

1722
01:26:32,010 --> 01:26:35,199
of match those up with the with the sheet.

1723
01:26:35,199 --> 01:26:39,960
And basically that's all I've got. So I'd be glad to answer

1724
01:26:39,960 --> 01:26:42,199
any questions.

1725
01:26:42,199 --> 01:26:45,199
I do have one more question.

1726
01:26:45,199 --> 01:26:49,460
I want to make sure if we do the 2 percent rate decrease

1727
01:26:49,460 --> 01:26:53,609
after 2023 we're not going to have to have a huge rate

1728
01:26:53,609 --> 01:26:58,199
increase because of these other projects that are at risk.

1729
01:26:58,199 --> 01:27:02,060
That is definitely something that we're looking at the

1730
01:27:02,060 --> 01:27:06,199
declining GPCD we're watching every year stepping forward.

1731
01:27:06,199 --> 01:27:12,000
And so the exact year in which that project is going to be

1732
01:27:12,000 --> 01:27:16,529
implemented is uncertain. We'll get more certain as we move

1733
01:27:16,529 --> 01:27:18,829
towards it. But yes there will be a large amount of debt

1734
01:27:18,829 --> 01:27:20,199
incurred to do that project.

1735
01:27:20,199 --> 01:27:23,619
It's going to be one of the biggest capital projects that

1736
01:27:23,619 --> 01:27:27,199
we've had since the actual construction of the plant.

1737
01:27:27,199 --> 01:27:35,699
And I guess the strategy is to hit debt or well we're

1738
01:27:35,699 --> 01:27:41,199
hitting revenue revenue funded capital.

1739
01:27:41,199 --> 01:27:45,199
This looks pretty heavy the next three or four years.

1740
01:27:45,199 --> 01:27:47,199
Versus debt.

1741
01:27:47,199 --> 01:27:57,199
And so I guess the strategy is to make room for the debt.

1742
01:27:57,199 --> 01:27:57,199
So there's not a need for it.

1743
01:27:57,199 --> 01:28:03,199
One thing you hate to do is give something.

1744
01:28:03,199 --> 01:28:06,560
Give do a rate decrease and have to come back five years

1745
01:28:06,560 --> 01:28:07,199
later.

1746
01:28:07,199 --> 01:28:11,470
As Susan said that's as long as the strategy is to make

1747
01:28:11,470 --> 01:28:15,899
room for that and looking back at our operating budget I

1748
01:28:15,899 --> 01:28:21,859
mean our debt service ratios seem to be in good shape to 2

1749
01:28:21,859 --> 01:28:24,199
plus over that time.

1750
01:28:24,199 --> 01:28:32,199
So that's seems to be a sound strategy.

1751
01:28:32,199 --> 01:28:34,810
Yeah we're we're definitely paying attention to it and I

1752
01:28:34,810 --> 01:28:37,539
keep going back to the risk mitigation risk and mitigation

1753
01:28:37,539 --> 01:28:40,430
and it's one of those things where this is our best plan

1754
01:28:40,430 --> 01:28:41,199
today.

1755
01:28:41,199 --> 01:28:44,199
And we'll continue watching how our reserves go.

1756
01:28:44,199 --> 01:28:47,930
You know how the revenues are affected and but yeah we're

1757
01:28:47,930 --> 01:28:50,680
trying to create as much room as we possibly can for the

1758
01:28:50,680 --> 01:28:51,199
debt.

1759
01:28:51,199 --> 01:28:54,699
So when we have good years we're investing in revenue

1760
01:28:54,699 --> 01:28:58,479
funded capital but as long as we're staying within those

1761
01:28:58,479 --> 01:29:02,409
bands that the P.B.A. Council sent with regard to reserves

1762
01:29:02,409 --> 01:29:04,199
we feel pretty good right now.

1763
01:29:04,199 --> 01:29:08,199
But there's still more analysis that needs to take place.

1764
01:29:08,199 --> 01:29:12,460
I think like I said with solid waste this isn't our money

1765
01:29:12,460 --> 01:29:15,779
this is the customer's money so we never want to be

1766
01:29:15,779 --> 01:29:19,869
charging more than we have to or keep more of their money

1767
01:29:19,869 --> 01:29:22,199
in reserves than we have to.

1768
01:29:22,199 --> 01:29:24,600
I just want to make sure we're not going to have to do 10

1769
01:29:24,600 --> 01:29:26,199
percent and 24 or something.

1770
01:29:26,199 --> 01:29:30,020
But I think it's sound as best as it can be for what we

1771
01:29:30,020 --> 01:29:31,199
know today.

1772
01:29:31,199 --> 01:29:39,850
I did notice on group 36 replacement of lines that ends in

1773
01:29:39,850 --> 01:29:43,460
2020 so there's no we don't we really don't think there's

1774
01:29:43,460 --> 01:29:46,199
any lines that need to be replaced after that.

1775
01:29:46,199 --> 01:29:50,470
Well yeah there will be but that that that we're loading up

1776
01:29:50,470 --> 01:29:54,489
heavy on the front end on that purpose to try to level that

1777
01:29:54,489 --> 01:29:55,199
out.

1778
01:29:55,199 --> 01:29:58,289
Is that part of the assessment the condition assessment

1779
01:29:58,289 --> 01:29:59,199
will tell us.

1780
01:29:59,199 --> 01:30:02,810
Yes on the on the transmission side we'll be able to have a

1781
01:30:02,810 --> 01:30:06,340
better handle on right now we've got a we've got a I think

1782
01:30:06,340 --> 01:30:10,380
a very healthy amount in for the 27 inch transmission line

1783
01:30:10,380 --> 01:30:14,199
the other transmission line assets.

1784
01:30:14,199 --> 01:30:18,069
I'm not as certain on but we'll have a much better sense of

1785
01:30:18,069 --> 01:30:22,199
where we're at after that condition assessments done.

1786
01:30:22,199 --> 01:30:23,199
Okay.

1787
01:30:23,199 --> 01:30:28,199
Other questions.

1788
01:30:28,199 --> 01:30:32,199
Thanks. Thanks.

1789
01:30:32,199 --> 01:30:33,199
Okay.

1790
01:30:33,199 --> 01:30:37,199
That concludes our work session.

1791
01:30:37,199 --> 01:30:40,199
We have.

1792
01:30:40,199 --> 01:30:43,199
We do have a closed.

1793
01:30:43,199 --> 01:30:47,199
We do need to go into a closed meeting.

1794
01:30:47,199 --> 01:30:50,199
Because we have an action item.

1795
01:30:50,199 --> 01:30:53,199
In open session when we come back so.

1796
01:30:53,199 --> 01:30:59,779
If this time would ask that we can be into a closed meeting

1797
01:30:59,779 --> 01:31:01,199
it's 10.

1798
01:31:01,199 --> 01:31:09,199
Okay we're back into our open open meeting at 1028 AM.

1799
01:31:09,199 --> 01:31:12,199
May the 7th.

1800
01:31:12,199 --> 01:31:15,199
2018.

1801
01:31:15,199 --> 01:31:18,199
First item we have under.

1802
01:31:18,199 --> 01:31:23,199
Individual consideration is to the draft minutes.

1803
01:31:23,199 --> 01:31:27,199
The public utility board meeting of April 23rd.

1804
01:31:27,199 --> 01:31:32,199
2018 or there any questions on these comments.

1805
01:31:32,199 --> 01:31:34,199
Corrections.

1806
01:31:34,199 --> 01:31:35,199
Yes, I.

1807
01:31:35,199 --> 01:31:39,199
There was the one vote that.

1808
01:31:39,199 --> 01:31:41,199
Where there was a.

1809
01:31:41,199 --> 01:31:43,199
Where I was the dissenting vote.

1810
01:31:43,199 --> 01:31:46,199
And I'm trying to bring this up right now.

1811
01:31:46,199 --> 01:31:48,199
I'm trying to bring this up right now.

1812
01:31:48,199 --> 01:31:52,199
And.

1813
01:31:52,199 --> 01:31:55,199
The reason for my dissent wasn't given.

1814
01:31:55,199 --> 01:31:57,199
The dissent wasn't explained.

1815
01:31:57,199 --> 01:31:58,199
And I think that,

1816
01:31:58,199 --> 01:32:00,000
and there may have been some other times where this was the

1817
01:32:00,000 --> 01:32:00,199
case and

1818
01:32:00,199 --> 01:32:01,199
I didn't.

1819
01:32:01,199 --> 01:32:03,199
Catch it. But I think in general.

1820
01:32:03,199 --> 01:32:09,199
When there's a dissenting opinion.

1821
01:32:09,199 --> 01:32:12,199
If the reason is stated by the dissenter that that,

1822
01:32:12,199 --> 01:32:14,199
that reason should be in the minutes.

1823
01:32:14,199 --> 01:32:17,199
And I think that's something that I would prefer to see.

1824
01:32:17,199 --> 01:32:21,199
Just something I prefer to see. So however.

1825
01:32:21,199 --> 01:32:25,199
However you want that to be worded.

1826
01:32:25,199 --> 01:32:28,199
I think.

1827
01:32:28,199 --> 01:32:31,199
I mean, in the item.

1828
01:32:31,199 --> 01:32:36,199
Perhaps under the comments.

1829
01:32:36,199 --> 01:32:38,199
When it's during the discussion of the item.

1830
01:32:38,199 --> 01:32:39,199
Those are recorded. So.

1831
01:32:39,199 --> 01:32:44,199
I think that's something that I would prefer to see.

1832
01:32:44,199 --> 01:32:46,479
And I did, I did state it. So I stated my reasons in the

1833
01:32:46,479 --> 01:32:47,199
recording.

1834
01:32:47,199 --> 01:32:50,199
This was about the.

1835
01:32:50,199 --> 01:32:52,199
This was the, with the redacted contract.

1836
01:32:52,199 --> 01:32:53,199
See the number.

1837
01:32:53,199 --> 01:32:54,199
That would be high to see.

1838
01:32:54,199 --> 01:32:59,199
Yeah.

1839
01:32:59,199 --> 01:33:00,199
Yes.

1840
01:33:00,199 --> 01:33:02,199
So did you just want to send some there?

1841
01:33:02,199 --> 01:33:03,199
Yeah, just.

1842
01:33:03,199 --> 01:33:05,199
Sentence in there for the reason.

1843
01:33:05,199 --> 01:33:08,199
For the reason.

1844
01:33:08,199 --> 01:33:09,199
That's the reason.

1845
01:33:09,199 --> 01:33:10,199
That's the reason.

1846
01:33:10,199 --> 01:33:11,199
That's the reason.

1847
01:33:11,199 --> 01:33:12,199
Yes. Exactly. Exactly.

1848
01:33:12,199 --> 01:33:13,199
Okay.

1849
01:33:13,199 --> 01:33:14,199
Yeah.

1850
01:33:14,199 --> 01:33:16,199
And that was stated on the record, but it.

1851
01:33:16,199 --> 01:33:18,199
And we can put it in the discussion.

1852
01:33:18,199 --> 01:33:19,199
Oh, exactly. Yeah.

1853
01:33:19,199 --> 01:33:20,199
I mean, obviously.

1854
01:33:20,199 --> 01:33:21,199
Okay.

1855
01:33:21,199 --> 01:33:22,199
Yes.

1856
01:33:22,199 --> 01:33:23,199
All right.

1857
01:33:23,199 --> 01:33:25,199
Yes. Yeah.

1858
01:33:25,199 --> 01:33:27,199
I voted, I voted against it because of all the,

1859
01:33:27,199 --> 01:33:28,199
because of all the redactions.

1860
01:33:28,199 --> 01:33:29,199
So yeah, just to.

1861
01:33:29,199 --> 01:33:30,199
And I'm.

1862
01:33:30,199 --> 01:33:31,199
Yeah.

1863
01:33:31,199 --> 01:33:34,199
Okay.

1864
01:33:34,199 --> 01:33:37,199
So with that correction on item C.

1865
01:33:37,199 --> 01:33:42,199
Corrections or that addition to item C.

1866
01:33:42,199 --> 01:33:45,689
If not, is there a motion then to approve the minutes with

1867
01:33:45,689 --> 01:33:48,199
that correction.

1868
01:33:48,199 --> 01:33:50,199
I move.

1869
01:33:50,199 --> 01:33:51,199
Have a motion.

1870
01:33:51,199 --> 01:33:53,199
And a second.

1871
01:33:53,199 --> 01:33:54,199
Any discussion?

1872
01:33:54,199 --> 01:33:55,199
All in favor say aye.

1873
01:33:55,199 --> 01:33:56,199
Aye.

1874
01:33:56,199 --> 01:33:57,199
Any opposed?

1875
01:33:57,199 --> 01:33:58,199
Okay.

1876
01:33:58,199 --> 01:34:00,199
Minutes are approved.

1877
01:34:00,199 --> 01:34:03,970
Next for individual consideration, we have item B, which is

1878
01:34:03,970 --> 01:34:06,199
to consider recommending adoption of an ordinance.

1879
01:34:06,199 --> 01:34:09,199
The city council of the city of Denton.

1880
01:34:09,199 --> 01:34:14,460
Providing for authorizing and approving the execution of by

1881
01:34:14,460 --> 01:34:17,869
the mayor of a power purchase agreement between the city of

1882
01:34:17,869 --> 01:34:21,199
Denton and blue bell solar to LLC.

1883
01:34:21,199 --> 01:34:24,579
Proving and authorizing the acceptance and approval by the

1884
01:34:24,579 --> 01:34:27,199
city manager or his respective designee.

1885
01:34:27,199 --> 01:34:30,689
Of guarantees and letters of credit issued by blue bell

1886
01:34:30,689 --> 01:34:34,199
solar to and next year energy capital holdings Inc.

1887
01:34:34,199 --> 01:34:37,199
Further securing.

1888
01:34:37,199 --> 01:34:43,199
The obligations of blue bell solar to to the city.

1889
01:34:43,199 --> 01:34:46,199
So.

1890
01:34:46,199 --> 01:34:49,199
I believe George.

1891
01:34:49,199 --> 01:34:52,199
Is going to lead us to this.

1892
01:34:52,199 --> 01:34:55,199
Good morning, George Morrill, general manager of DME.

1893
01:34:55,199 --> 01:34:58,770
It's a pleasure to be before you this morning to talk about

1894
01:34:58,770 --> 01:35:02,189
our recommendation for a new renewable power purchase

1895
01:35:02,189 --> 01:35:03,199
agreement.

1896
01:35:03,199 --> 01:35:07,199
The project's called the blue bell solar to project.

1897
01:35:07,199 --> 01:35:09,199
And a little bit of history and background.

1898
01:35:09,199 --> 01:35:12,699
The purchasing department here at the city, the city issued

1899
01:35:12,699 --> 01:35:15,850
an RFP for solar and wind energy back on back in June of

1900
01:35:15,850 --> 01:35:18,199
last year with bids due October 4.

1901
01:35:18,199 --> 01:35:22,199
And we were blessed with a lot of proposals.

1902
01:35:22,199 --> 01:35:26,090
You can see here in the presentation we had 41 separate

1903
01:35:26,090 --> 01:35:28,199
entities submit proposals.

1904
01:35:28,199 --> 01:35:32,060
89 different projects and when you looked at different

1905
01:35:32,060 --> 01:35:35,890
timing and sizes and locations, we came up with 846

1906
01:35:35,890 --> 01:35:38,199
separate little unique offers.

1907
01:35:38,199 --> 01:35:43,199
And we start dates ranging from mid 19 through 2021.

1908
01:35:43,199 --> 01:35:46,510
And so RFP was very clear what what we would look at was

1909
01:35:46,510 --> 01:35:50,189
four components for the evaluation price, of course,

1910
01:35:50,189 --> 01:35:53,449
location, which talks about how easy it is to get it back

1911
01:35:53,449 --> 01:35:54,199
to Denton.

1912
01:35:54,199 --> 01:35:57,409
Hourly production profile, which indicates how much energy

1913
01:35:57,409 --> 01:36:00,250
we're actually going to get from that plant and the past

1914
01:36:00,250 --> 01:36:01,199
performance.

1915
01:36:01,199 --> 01:36:06,199
And so I was also fortunate to be part of a big group of

1916
01:36:06,199 --> 01:36:10,199
with experts looking at this evaluation.

1917
01:36:10,199 --> 01:36:14,069
And we even had some outside council assist us with a fresh

1918
01:36:14,069 --> 01:36:15,199
pair of eyes.

1919
01:36:15,199 --> 01:36:18,630
And the recommendation was the one I'm bringing forward to

1920
01:36:18,630 --> 01:36:22,020
you today is the blue bell solar to project recommended by

1921
01:36:22,020 --> 01:36:23,199
next era proposed by next era.

1922
01:36:23,199 --> 01:36:27,199
Energy and a little bit of background about that project.

1923
01:36:27,199 --> 01:36:31,460
It's located in Sterling County, about 200 miles west of

1924
01:36:31,460 --> 01:36:37,010
the city, using solar photovoltaic technology with his with

1925
01:36:37,010 --> 01:36:39,199
crystalline solar cells.

1926
01:36:39,199 --> 01:36:42,979
The size is 100 megawatts. So pretty substantial project

1927
01:36:42,979 --> 01:36:46,069
for us and a 15 year term in service date by the end of

1928
01:36:46,069 --> 01:36:51,350
2020, which matches up well with city's policy to move

1929
01:36:51,350 --> 01:36:52,199
toward 100 percent renewable energy.

1930
01:36:52,199 --> 01:36:58,199
And that's a very competitive and fixed price for the term.

1931
01:36:58,199 --> 01:37:02,460
And which is standard these days in the in the proposals, I

1932
01:37:02,460 --> 01:37:06,199
think pretty much all our proposals were were that way.

1933
01:37:06,199 --> 01:37:09,050
And that's that's good for the good for the utilities, good

1934
01:37:09,050 --> 01:37:10,199
for our customers.

1935
01:37:10,199 --> 01:37:13,199
So I did mention there's a note on the bottom of the slide.

1936
01:37:13,199 --> 01:37:16,199
There's already a contract we have for blue bell solar one.

1937
01:37:16,199 --> 01:37:18,890
And perhaps that was why we were able to get such an

1938
01:37:18,890 --> 01:37:22,109
attractive offer is there's this would be layered on top of

1939
01:37:22,109 --> 01:37:24,199
that and using the same facility.

1940
01:37:24,199 --> 01:37:27,020
There's some economies of scale benefit for having the two

1941
01:37:27,020 --> 01:37:28,199
projects together.

1942
01:37:28,199 --> 01:37:32,199
And that one is scheduled to begin right now by November.

1943
01:37:32,199 --> 01:37:34,199
This year is the current timetable.

1944
01:37:34,199 --> 01:37:37,909
So we'll have our first 30 megawatts solar on the books

1945
01:37:37,909 --> 01:37:39,199
later this year.

1946
01:37:39,199 --> 01:37:43,470
So bringing forward that arrangement to you, there's a

1947
01:37:43,470 --> 01:37:48,199
staff report and a what I call a lightly redacted contract.

1948
01:37:48,199 --> 01:37:52,449
And why I want to compliment next era for working with us,

1949
01:37:52,449 --> 01:37:56,119
you know, city's policy to be as open and transparent as

1950
01:37:56,119 --> 01:37:57,199
possible.

1951
01:37:57,199 --> 01:38:00,460
I asked them to, you know, let's work on this in that

1952
01:38:00,460 --> 01:38:01,199
regard.

1953
01:38:01,199 --> 01:38:03,199
And they were very helpful and supportive.

1954
01:38:03,199 --> 01:38:10,050
So I did want to compliment them. So we're requesting the P

1955
01:38:10,050 --> 01:38:13,010
.B. consider recommending adoption of this new renewable

1956
01:38:13,010 --> 01:38:15,199
arrangement for 15 years of solar power.

1957
01:38:15,199 --> 01:38:19,199
And I'm here to answer any questions.

1958
01:38:19,199 --> 01:38:21,199
Questions. Yes. Yes.

1959
01:38:21,199 --> 01:38:23,199
I have a couple questions.

1960
01:38:23,199 --> 01:38:26,550
I wanted to ask if 100 percent of the power that will come

1961
01:38:26,550 --> 01:38:29,199
out of this contract will be provided by city.

1962
01:38:29,199 --> 01:38:33,510
And that there aren't any recs included or anything like

1963
01:38:33,510 --> 01:38:34,199
that.

1964
01:38:34,199 --> 01:38:36,199
No, you're totally correct.

1965
01:38:36,199 --> 01:38:40,199
This will be one of the sun solar contracts.

1966
01:38:40,199 --> 01:38:42,699
So when the sun is out and shining, we'll get solar energy

1967
01:38:42,699 --> 01:38:44,199
when it's not in the evenings.

1968
01:38:44,199 --> 01:38:46,909
Night times we'll get less or we won't get any depending on

1969
01:38:46,909 --> 01:38:48,199
the solar insulation.

1970
01:38:48,199 --> 01:38:52,090
So this one is not managed or in any way similar to other

1971
01:38:52,090 --> 01:38:56,130
arrangements that other people have had in which we've had

1972
01:38:56,130 --> 01:38:57,199
to do this.

1973
01:38:57,199 --> 01:39:02,199
So that's great.

1974
01:39:02,199 --> 01:39:04,199
I'd also like to ask.

1975
01:39:04,199 --> 01:39:08,859
So we're we're we're purchasing this power from Bluebell

1976
01:39:08,859 --> 01:39:12,199
who's setting up the solar facility.

1977
01:39:12,199 --> 01:39:17,199
Have we evaluated like we did with the energy center?

1978
01:39:17,199 --> 01:39:22,199
Have we evaluated building our own solar operation?

1979
01:39:22,199 --> 01:39:26,199
I mean, yes and no.

1980
01:39:26,199 --> 01:39:30,060
My experience over the years looking at these kinds of

1981
01:39:30,060 --> 01:39:35,470
projects requires a tremendous amount of of expertise and

1982
01:39:35,470 --> 01:39:40,319
specific to this type of development and program, you know,

1983
01:39:40,319 --> 01:39:44,199
identifying a site, obtaining and managing that site,

1984
01:39:44,199 --> 01:39:46,199
managing a project.

1985
01:39:46,199 --> 01:39:47,899
You know, there's lots of different components that go in

1986
01:39:47,899 --> 01:39:48,199
there.

1987
01:39:48,199 --> 01:39:50,909
For us, it would be a relatively modest economy of scale,

1988
01:39:50,909 --> 01:39:53,810
whereas a next era, for instance, they've got well, they're

1989
01:39:53,810 --> 01:39:56,640
probably the country's largest wind power producer and they

1990
01:39:56,640 --> 01:39:59,199
're moving higher up the chain in the solar side.

1991
01:39:59,199 --> 01:40:02,199
They're, you know, turning their head toward solar.

1992
01:40:02,199 --> 01:40:04,199
So they've got a lot of background economies.

1993
01:40:04,199 --> 01:40:07,340
They can mobilize bigger, you know, workforces that have

1994
01:40:07,340 --> 01:40:08,199
expertise.

1995
01:40:08,199 --> 01:40:12,069
So it would be difficult, extremely difficult for us to do

1996
01:40:12,069 --> 01:40:14,199
anything even close to this.

1997
01:40:14,199 --> 01:40:18,470
We'll mention if we were to do say a smaller solar project

1998
01:40:18,470 --> 01:40:21,689
locally, which has pros and cons, and there's some pros to

1999
01:40:21,689 --> 01:40:22,199
that.

2000
01:40:22,199 --> 01:40:25,350
You'd be looking probably just rule of thumb two to three

2001
01:40:25,350 --> 01:40:28,500
times as expensive as is what we think you might be able to

2002
01:40:28,500 --> 01:40:30,199
buy from the open market.

2003
01:40:30,199 --> 01:40:31,199
Okay.

2004
01:40:31,199 --> 01:40:32,199
On a utility scale.

2005
01:40:32,199 --> 01:40:33,199
Sure. Thank you.

2006
01:40:33,199 --> 01:40:37,199
Yes.

2007
01:40:37,199 --> 01:40:41,199
Other questions?

2008
01:40:41,199 --> 01:40:44,199
Sorry, sorry.

2009
01:40:44,199 --> 01:40:51,250
I'll just say that I'm really pleased that the company

2010
01:40:51,250 --> 01:40:55,920
agreed to essentially only redact the price and to make

2011
01:40:55,920 --> 01:41:01,199
everything else, or just about everything else transparent.

2012
01:41:01,199 --> 01:41:05,930
So, you know, we can show the ratepayers, we can tell them

2013
01:41:05,930 --> 01:41:10,289
that this is really the best deal, and even if we didn't

2014
01:41:10,289 --> 01:41:17,470
have 100% renewable goal, this is still really the cheapest

2015
01:41:17,470 --> 01:41:22,199
option on the market, and we got a really good deal on it.

2016
01:41:22,199 --> 01:41:25,199
And they can look at all the other terms of the contract.

2017
01:41:25,199 --> 01:41:29,069
So anyway, I thank you for working with them on that, and I

2018
01:41:29,069 --> 01:41:32,659
'm very pleased, and it makes me think very well of this

2019
01:41:32,659 --> 01:41:35,199
company that we're working with.

2020
01:41:35,199 --> 01:41:39,199
I think that's a good business partner.

2021
01:41:39,199 --> 01:41:42,819
So I just want to mention that for the public, and also to

2022
01:41:42,819 --> 01:41:45,199
thank staff for working on that.

2023
01:41:45,199 --> 01:41:47,199
All right. Thank you.

2024
01:41:47,199 --> 01:41:49,199
Okay.

2025
01:41:49,199 --> 01:41:51,199
Anything else? Motion?

2026
01:41:51,199 --> 01:41:54,199
I'd like to motion that we recommend this ordinance.

2027
01:41:54,199 --> 01:41:56,199
Okay, we have a motion.

2028
01:41:56,199 --> 01:41:58,199
Second, and a second.

2029
01:41:58,199 --> 01:42:00,199
Any discussion.

2030
01:42:00,199 --> 01:42:02,199
All in favor say aye.

2031
01:42:02,199 --> 01:42:05,199
Aye. Any opposed.

2032
01:42:05,199 --> 01:42:09,199
Very good. Thank you, George. Thank you very much.

2033
01:42:09,199 --> 01:42:11,199
Okay.

2034
01:42:11,199 --> 01:42:14,199
Next we have the ACM update.

2035
01:42:14,199 --> 01:42:17,100
Thank you, Mr. Chairman, members of the board. In your

2036
01:42:17,100 --> 01:42:19,729
packet, there are a couple of staff items here for your

2037
01:42:19,729 --> 01:42:22,079
review or questions if you have one of those is the

2038
01:42:22,079 --> 01:42:25,199
employee ethics policy that which was adopted by council.

2039
01:42:25,199 --> 01:42:28,350
Middle of last month, Cassie Ogden here is present to

2040
01:42:28,350 --> 01:42:31,699
answer any specific questions you may have. But in the

2041
01:42:31,699 --> 01:42:34,470
packet you have a summary of the policy and the actual

2042
01:42:34,470 --> 01:42:37,600
policy document itself that's been distributed to the city

2043
01:42:37,600 --> 01:42:38,199
staff.

2044
01:42:38,199 --> 01:42:41,989
The second item is a follow up on a water leak adjustment

2045
01:42:41,989 --> 01:42:46,140
memo, and Tiffany Thompson to hear to answer any questions

2046
01:42:46,140 --> 01:42:48,199
you may have about that item.

2047
01:42:48,199 --> 01:42:50,739
We have questions I know we had a lot of discussion last

2048
01:42:50,739 --> 01:42:51,199
time.

2049
01:42:51,199 --> 01:42:55,060
Well, I'd like to say that I act in an ethical manner

2050
01:42:55,060 --> 01:42:59,079
always, I wonder if any of the aspects of this policy

2051
01:42:59,079 --> 01:43:01,199
impact the pubs behavior.

2052
01:43:01,199 --> 01:43:04,699
The, the policy that council adopted last week will apply

2053
01:43:04,699 --> 01:43:08,039
to the PB members, as well as I think all of our boards and

2054
01:43:08,039 --> 01:43:12,869
commissions. So, staff is in the process of developing a

2055
01:43:12,869 --> 01:43:17,470
training program with our outside council, and I would

2056
01:43:17,470 --> 01:43:21,560
anticipate in probably by June, we'll be able to be in to

2057
01:43:21,560 --> 01:43:25,460
provide training to all the various commissions that they

2058
01:43:25,460 --> 01:43:27,199
're impacted by that new policy.

2059
01:43:27,199 --> 01:43:30,430
So, this is strictly the employee ethics policy which is a

2060
01:43:30,430 --> 01:43:33,539
little bit different from the councils but yeah we'll be

2061
01:43:33,539 --> 01:43:37,010
back to you in a month or 45 to 60 days at the latest to

2062
01:43:37,010 --> 01:43:38,199
provide training.

2063
01:43:38,199 --> 01:43:40,199
Okay, thank you.

2064
01:43:40,199 --> 01:43:42,199
Good.

2065
01:43:42,199 --> 01:43:48,920
I just wanted to thank Tiffany and staff for coming up with

2066
01:43:48,920 --> 01:43:55,510
the water adjustment policy and putting all that, that

2067
01:43:55,510 --> 01:43:58,039
together. I'm coming up with that document, and putting all

2068
01:43:58,039 --> 01:43:59,199
that together that that was really informative and helpful.

2069
01:43:59,199 --> 01:44:03,619
I was wondering is that somewhere on the website for the

2070
01:44:03,619 --> 01:44:08,510
for the, I mean, obviously, they can see it in the agenda,

2071
01:44:08,510 --> 01:44:12,720
but I mean, you know if you know people go to our water

2072
01:44:12,720 --> 01:44:17,699
department, and, and if not, is that would that be possible

2073
01:44:17,699 --> 01:44:18,199
.

2074
01:44:18,199 --> 01:44:23,479
I wonder what category, you know, but to put that if says

2075
01:44:23,479 --> 01:44:28,430
that somebody would know that there's a recourse to if

2076
01:44:28,430 --> 01:44:30,539
there's a leak. I will confirm that that it's on the

2077
01:44:30,539 --> 01:44:31,119
website I want to say that it is but I like to go back and

2078
01:44:31,119 --> 01:44:34,479
look where it's at because we've had some relocation of

2079
01:44:34,479 --> 01:44:36,789
items and so I want to make sure that I know where it's

2080
01:44:36,789 --> 01:44:39,199
been located but if it isn't, I'll make sure it's on there

2081
01:44:39,199 --> 01:44:40,199
this week.

2082
01:44:40,199 --> 01:44:55,369
Thank you. I know that in my experience I've actually had

2083
01:44:55,369 --> 01:44:55,609
to use this before, and the customer service representative

2084
01:44:55,609 --> 01:44:55,819
is the one who told me about it I mean instantly, they were

2085
01:44:55,819 --> 01:44:56,199
like, well, you can do this and we can adjust this bill so.

2086
01:44:56,199 --> 01:44:59,159
Yeah, it's usually initiated with the customer calling in,

2087
01:44:59,159 --> 01:45:02,069
because they are aware that they've experienced this excess

2088
01:45:02,069 --> 01:45:04,729
usage and then we go through what was it for because there

2089
01:45:04,729 --> 01:45:07,329
was a little bit of education piece with that but again I

2090
01:45:07,329 --> 01:45:10,279
will confirm that it's on our website that information,

2091
01:45:10,279 --> 01:45:11,199
thank you for the feedback.

2092
01:45:11,199 --> 01:45:13,199
Thanks.

2093
01:45:13,199 --> 01:45:15,199
Thank you.

2094
01:45:15,199 --> 01:45:18,569
And beyond that, there's really nothing further to report

2095
01:45:18,569 --> 01:45:21,750
just as a reminder to the board that the next meeting will

2096
01:45:21,750 --> 01:45:25,039
be on the 21st of May, because the following Monday is

2097
01:45:25,039 --> 01:45:27,590
Memorial Day. So, just as a note of reference and a

2098
01:45:27,590 --> 01:45:28,199
reminder.

2099
01:45:28,199 --> 01:45:30,199
Thank you.

2100
01:45:30,199 --> 01:45:34,199
Okay.

2101
01:45:34,199 --> 01:45:38,199
All right, let's see.

2102
01:45:38,199 --> 01:45:46,279
And we'll go ahead and do concluding items now, which

2103
01:45:46,279 --> 01:45:49,140
basically is to respond to inquiries from the public

2104
01:45:49,140 --> 01:45:52,090
utilities board or the public with specific factual

2105
01:45:52,090 --> 01:45:55,359
information or rest station policy or accept a proposal to

2106
01:45:55,359 --> 01:45:57,199
place the matter on the agenda for an upcoming

2107
01:45:57,199 --> 01:45:59,199
meeting.

2108
01:45:59,199 --> 01:46:03,199
We have anything to add to future agenda.

2109
01:46:03,199 --> 01:46:09,199
Yes, I'd like to repeat a request that I had made.

2110
01:46:09,199 --> 01:46:14,270
Pretty soon after I first got on the public utility board,

2111
01:46:14,270 --> 01:46:19,430
which, you know, now that we have a new general manager for

2112
01:46:19,430 --> 01:46:22,199
DME and new head of finance.

2113
01:46:22,199 --> 01:46:27,840
I think it would be a good time to revisit this, this, this

2114
01:46:27,840 --> 01:46:33,060
question and explore this possibility and that is the

2115
01:46:33,060 --> 01:46:38,470
question of why DME rates aren't structured like water

2116
01:46:38,470 --> 01:46:44,810
rates, whereby the for our water commercial users are

2117
01:46:44,810 --> 01:46:47,199
charged more and residential

2118
01:46:47,199 --> 01:46:52,180
users are charged less and obviously commercial users are

2119
01:46:52,180 --> 01:46:57,010
the big users and any residential user whether you live in

2120
01:46:57,010 --> 01:47:02,229
a mansion or an apartment is smaller user than, than the,

2121
01:47:02,229 --> 01:47:05,199
than the commercial account.

2122
01:47:05,199 --> 01:47:09,899
So, you know, that seems to be working really well with

2123
01:47:09,899 --> 01:47:15,100
with water. Obviously this water and electricity on the one

2124
01:47:15,100 --> 01:47:18,439
hand they're apples and oranges. But you know they're both

2125
01:47:18,439 --> 01:47:19,029
the service provided by utility service provided by by the

2126
01:47:19,029 --> 01:47:19,199
city.

2127
01:47:19,199 --> 01:47:23,649
And it encourages conservation and keeps residential rates

2128
01:47:23,649 --> 01:47:27,720
low at the same time and I was really interested to hear in

2129
01:47:27,720 --> 01:47:31,710
our, you know, just discussion and update on on water

2130
01:47:31,710 --> 01:47:36,199
budgeting that there haven't been commercial complaints

2131
01:47:36,199 --> 01:47:42,199
about the higher, you know, rates, rates for water.

2132
01:47:42,199 --> 01:47:45,369
That is to say you know commercial customers haven't been

2133
01:47:45,369 --> 01:47:48,479
complaining and lobbying to get you know why don't we get

2134
01:47:48,479 --> 01:47:51,199
the, the same rates that that residents do.

2135
01:47:51,199 --> 01:47:55,199
We may have some now, they're watching. So, yeah.

2136
01:47:55,199 --> 01:48:09,699
But, I mean, but, and I think they should know, you know,

2137
01:48:09,699 --> 01:48:13,420
it's there. So anyway, that's something that I mean I think

2138
01:48:13,420 --> 01:48:13,689
it would be helpful to at least explore that possibility

2139
01:48:13,689 --> 01:48:13,960
now that we've got, you know, some, some new brains on

2140
01:48:13,960 --> 01:48:17,199
board, and for us to hear what the pros and cons might be.

2141
01:48:17,199 --> 01:48:21,590
But I just think it's always good to, you know, question

2142
01:48:21,590 --> 01:48:25,890
the, this, this, this status quo on an issue like this

2143
01:48:25,890 --> 01:48:29,829
especially if there's a possibility of of lowering

2144
01:48:29,829 --> 01:48:32,199
residential rates even more.

2145
01:48:32,199 --> 01:48:37,199
How many agenda items was that.

2146
01:48:37,199 --> 01:48:41,619
I'm kidding. I just said, No, I know, I know going through

2147
01:48:41,619 --> 01:48:45,909
the budget, you know, we'll look at it and I think probably

2148
01:48:45,909 --> 01:48:49,760
, I don't know if in the budget or maybe it's a separate

2149
01:48:49,760 --> 01:48:53,779
agenda item where we look at cost of cost of service, and

2150
01:48:53,779 --> 01:48:58,199
what the rates are based on, it's cost of service and

2151
01:48:58,199 --> 01:49:02,739
obviously, you know, water is, there's an incentive and

2152
01:49:02,739 --> 01:49:06,199
water for conservative for conservation.

2153
01:49:06,199 --> 01:49:17,189
And it's, you know, the cost of service for a higher volume

2154
01:49:17,189 --> 01:49:19,199
is a lot more.

2155
01:49:19,199 --> 01:49:24,619
And it's not necessarily so on on electricity. I mean, I'm

2156
01:49:24,619 --> 01:49:29,859
just comparing apples oranges but I think that perhaps you

2157
01:49:29,859 --> 01:49:34,710
know maybe we look at looking at cost of service on both

2158
01:49:34,710 --> 01:49:36,199
utilities.

2159
01:49:36,199 --> 01:49:50,199
But at least we'll have a discussion about it. We'll be

2160
01:49:50,199 --> 01:49:50,199
ready.

2161
01:49:50,199 --> 01:50:08,199
Okay, any, any other comments, agenda items.

2162
01:50:08,199 --> 01:50:11,659
We will not be coming back into open session after that

2163
01:50:11,659 --> 01:50:15,520
will be adjourning out of the closed session since there'll

2164
01:50:15,520 --> 01:50:20,199
be no other action items.