WEBVTT 00:00:00.000 --> 00:00:06.440 May the 7th 2018 we'll call the May 7 2018 public utility 00:00:06.440 --> 00:00:07.080 board meeting to 00:00:07.080 --> 00:00:12.390 order and right away we have a work session so we have a 00:00:12.390 --> 00:00:13.720 few items to go 00:00:13.720 --> 00:00:18.059 over we'll start with item A which is to receive a report 00:00:18.059 --> 00:00:19.440 from staff regarding 00:00:19.440 --> 00:00:23.839 the 2017 reliability indices for the electric distribution 00:00:23.839 --> 00:00:24.800 system and DME's 00:00:24.800 --> 00:00:29.359 actions taken to improve reliability. 00:00:30.039 --> 00:00:33.380 George Morrow DME general manager it's my honor to come 00:00:33.380 --> 00:00:35.280 before you this morning 00:00:35.280 --> 00:00:39.140 to introduce this reliability information about the 00:00:39.140 --> 00:00:40.039 electric system 00:00:40.039 --> 00:00:43.710 and also introduce Jerry Fielder who's our distribution 00:00:43.710 --> 00:00:45.280 system manager who has 00:00:45.280 --> 00:00:47.789 sliced and diced and parsed all this reliability 00:00:47.789 --> 00:00:49.280 information to kind of give 00:00:49.280 --> 00:00:53.140 you and us an idea of how reliable are we reliability being 00:00:53.140 --> 00:00:54.359 extremely important 00:00:54.359 --> 00:00:57.789 these days we're all used to having electricity and when it 00:00:57.789 --> 00:00:58.719 's out you know 00:00:58.719 --> 00:01:02.500 how critical that is and I think we what I've seen my time 00:01:02.500 --> 00:01:04.040 in Denton that we have 00:01:04.040 --> 00:01:07.819 an outstanding reliability here in the city we have very 00:01:07.819 --> 00:01:09.099 few outages and though 00:01:09.099 --> 00:01:12.090 when we do have outages we respond extremely quickly it's 00:01:12.090 --> 00:01:12.920 to me it's been 00:01:12.920 --> 00:01:20.920 amazing our reliability here is 99.99% so so with that I'll 00:01:20.920 --> 00:01:22.120 introduce Jerry and 00:01:22.120 --> 00:01:24.799 let him take it away. 00:01:29.280 --> 00:01:32.549 A little shorter good morning. I appreciate the time this 00:01:32.549 --> 00:01:35.760 morning to kind of visit 00:01:35.760 --> 00:01:38.969 with you guys about the reliability of the distribution 00:01:38.969 --> 00:01:40.159 system before I get 00:01:40.159 --> 00:01:43.359 into it I want to introduce a couple of other members of 00:01:43.359 --> 00:01:44.719 the reliability team 00:01:44.719 --> 00:01:47.489 and that's Brad Watts who is the superintendent of 00:01:47.489 --> 00:01:48.319 operation and 00:01:48.319 --> 00:01:52.640 maintenance and Rowdy Patterson who is the superintendent 00:01:52.640 --> 00:01:54.159 of construction and 00:01:54.159 --> 00:01:57.909 missing today is Sam Bridges who is the superintendent's of 00:01:57.909 --> 00:02:00.959 the substation group. 00:02:06.480 --> 00:02:09.560 All right we're gonna start off with the test questions 00:02:09.560 --> 00:02:12.800 begin with just kind of 00:02:12.800 --> 00:02:15.939 let you know what we look at these are indices that are 00:02:15.939 --> 00:02:18.360 established by IEEE 1366 00:02:18.360 --> 00:02:21.370 which is a standard for electric reliability this was 00:02:21.370 --> 00:02:22.319 established by the 00:02:22.319 --> 00:02:26.590 Institute of Electrical and Electronic Engineers there are 00:02:26.590 --> 00:02:28.000 several different 00:02:28.000 --> 00:02:31.780 factors that we look at these are the common ones we look 00:02:31.780 --> 00:02:33.599 at SATI. SATI is the 00:02:33.599 --> 00:02:37.870 system average interruption duration and that's the total 00:02:37.870 --> 00:02:38.759 duration of an 00:02:38.759 --> 00:02:42.360 interruption for the average customer during a given time 00:02:42.360 --> 00:02:43.400 period and it's 00:02:43.400 --> 00:02:47.259 measured in minutes. KD is the customer average inter 00:02:47.259 --> 00:02:48.840 ruption duration index and 00:02:48.840 --> 00:02:52.259 that's the average amount of time taken to restore service 00:02:52.259 --> 00:02:54.039 and again that is in 00:02:54.039 --> 00:02:57.560 minutes. SAFE is the system average interruption 00:02:57.560 --> 00:03:01.169 frequency index and that's the average number of times that 00:03:01.169 --> 00:03:02.360 a system customer 00:03:02.360 --> 00:03:05.719 experiences an outage during a time period being studied 00:03:05.719 --> 00:03:06.719 and that's just a 00:03:06.719 --> 00:03:11.110 number. A SAY which is the average system availability 00:03:11.110 --> 00:03:12.439 index that's the total 00:03:12.439 --> 00:03:15.439 necessary number of customer hours that service was 00:03:15.439 --> 00:03:16.919 available during the time 00:03:16.919 --> 00:03:21.189 period being studied to the total customer hours demanded 00:03:21.189 --> 00:03:21.960 and is 00:03:21.960 --> 00:03:24.590 calculated using the formula that they've got right there 00:03:24.590 --> 00:03:25.120 this one is 00:03:25.120 --> 00:03:30.750 actually given to us in hours. TMED is a method that if you 00:03:30.750 --> 00:03:32.360 are in area that has 00:03:32.360 --> 00:03:36.639 large and extended interruptions TMED lets you figure out 00:03:36.639 --> 00:03:37.960 what that number is 00:03:37.960 --> 00:03:41.680 and those you can actually take out of your calculations DM 00:03:41.680 --> 00:03:43.360 E has no TMED 00:03:43.360 --> 00:03:46.979 we don't take any of them out and then performance this is 00:03:46.979 --> 00:03:48.599 not IEEE 1366 00:03:48.599 --> 00:03:51.719 this is Jerry Fielder basically what I do is take the SATE 00:03:51.719 --> 00:03:53.199 times the SAFE so I 00:03:53.199 --> 00:03:56.000 take the duration times the frequency multiply them 00:03:56.000 --> 00:03:57.319 together the higher the 00:03:57.319 --> 00:04:03.500 number the worst performer that asset is. Okay to go over 00:04:03.500 --> 00:04:05.159 the baseline for 2017 00:04:05.159 --> 00:04:09.430 the time period that was studied was January 1st 2017 to 00:04:09.430 --> 00:04:11.199 December 31st 2017 00:04:11.199 --> 00:04:15.969 during that time frame we had 950 events the indices were 00:04:15.969 --> 00:04:18.519 calculated on IEEE 1366 00:04:18.519 --> 00:04:22.790 standards for reliability industries and classified based 00:04:22.790 --> 00:04:24.680 on IEEE 1782 00:04:24.680 --> 00:04:28.560 which is another specification that lets us know how the I 00:04:28.560 --> 00:04:29.560 EEE wants these 00:04:29.560 --> 00:04:32.759 things to kind of be classified we go above and beyond on 00:04:32.759 --> 00:04:34.040 classification you 00:04:34.040 --> 00:04:36.029 guys should have a cheat sheet in front of you of all the 00:04:36.029 --> 00:04:36.920 classifications that 00:04:36.920 --> 00:04:41.300 we actually use reliability indices we calculate on the 00:04:41.300 --> 00:04:42.639 system level the 00:04:42.639 --> 00:04:45.680 substation level and on the feeder service levels and 00:04:45.680 --> 00:04:47.000 during that time 00:04:47.000 --> 00:04:50.920 frame we've identified the top five cause and equipment 00:04:50.920 --> 00:04:52.240 codes that were on 00:04:52.240 --> 00:04:58.290 these three different service levels. So for us last year 00:04:58.290 --> 00:05:00.000 as it was in 2016 00:05:00.000 --> 00:05:07.319 squirrels were our nemesis of the 213 animal small animal 00:05:07.319 --> 00:05:08.759 reported incidences 00:05:08.759 --> 00:05:15.120 199 were contributed to squirrels. So just kind of give you 00:05:15.120 --> 00:05:15.959 an idea we're not 00:05:15.959 --> 00:05:19.199 unusual with this thing the APPA had an article squirrels 00:05:19.199 --> 00:05:20.439 other wildlife are the 00:05:20.439 --> 00:05:23.930 most common cause of allergies the survey finds and just 00:05:23.930 --> 00:05:25.040 the quote from this 00:05:25.040 --> 00:05:27.560 thing is saying wildlife near power equipment is the most 00:05:27.560 --> 00:05:28.439 common cause of 00:05:28.439 --> 00:05:31.040 allergies at public power utilities and the failure of 00:05:31.040 --> 00:05:32.519 overhead equipment is the 00:05:32.519 --> 00:05:36.019 second most common cause according to the APPA's latest 00:05:36.019 --> 00:05:37.240 survey you know 00:05:37.240 --> 00:05:39.899 basically what they're saying is since a utility pole is 00:05:39.899 --> 00:05:40.759 similar to a tree 00:05:40.759 --> 00:05:43.670 squirrels frequently climb the poles the heat emitted by 00:05:43.670 --> 00:05:45.000 electric lines can 00:05:45.000 --> 00:05:47.779 attract the squirrel because they like to get that warmth 00:05:47.779 --> 00:05:48.720 from the electric 00:05:48.720 --> 00:05:53.709 line so that's why squirrels love us so much. Now once we 00:05:53.709 --> 00:05:54.560 did the study we 00:05:54.560 --> 00:05:57.810 identify the top five cause codes we identify the top five 00:05:57.810 --> 00:05:58.879 equipment codes 00:05:58.879 --> 00:06:03.720 for 2017 the top five cause codes or number one was animals 00:06:03.720 --> 00:06:04.819 the small animals 00:06:04.819 --> 00:06:07.279 and birds this is your squirrels planned outages 00:06:07.279 --> 00:06:08.680 maintenance and we'll talk a 00:06:08.680 --> 00:06:11.639 little bit more about this why that's so high this time 00:06:11.639 --> 00:06:13.480 maintenance or decay age 00:06:13.480 --> 00:06:17.740 of material that's basically materials just aging out there 00:06:17.740 --> 00:06:18.879 weather associated 00:06:18.879 --> 00:06:21.199 with lightning lightning associated with weather and 00:06:21.199 --> 00:06:22.720 equipment or design 00:06:22.720 --> 00:06:25.470 installation it's a material or equipment failure the 00:06:25.470 --> 00:06:26.879 equipment that we 00:06:26.879 --> 00:06:30.259 identified was no damaged equipment and that kind of goes 00:06:30.259 --> 00:06:31.319 in with the maintenance 00:06:31.319 --> 00:06:35.180 part of it overhead line conductor and devices the line 00:06:35.180 --> 00:06:36.839 transformers the fuses 00:06:36.839 --> 00:06:39.569 associated with the line transformers secondary and 00:06:39.569 --> 00:06:40.519 services and line 00:06:40.519 --> 00:06:43.930 transformers becoming bad we're going to focus mainly on 00:06:43.930 --> 00:06:45.399 the equipment I mean the 00:06:45.399 --> 00:06:47.180 cause codes during this thing because that's what 00:06:47.180 --> 00:06:48.279 everything is really kind of 00:06:48.279 --> 00:06:51.779 tuned to it is eliminating the causes but the equipment 00:06:51.779 --> 00:06:52.680 codes help us 00:06:52.680 --> 00:06:55.910 understand if there's a pattern going on out there that we 00:06:55.910 --> 00:06:57.199 have equipment that's 00:06:57.199 --> 00:06:59.790 failing and it's in the same area or it's the same 00:06:59.790 --> 00:07:01.120 manufacturer helps us 00:07:01.120 --> 00:07:04.550 understand what that's going on right there so what this 00:07:04.550 --> 00:07:06.000 next graph is showing 00:07:06.000 --> 00:07:09.500 you is on the top of it is the combination of all the 00:07:09.500 --> 00:07:10.360 events the 00:07:10.360 --> 00:07:13.339 combination of all the outage time for those 950 events and 00:07:13.339 --> 00:07:14.000 the number of 00:07:14.000 --> 00:07:19.649 customers affected as you can see right there there's when 00:07:19.649 --> 00:07:21.279 you take the top five 00:07:21.279 --> 00:07:25.680 out on the top part of it which for the number of events 65 00:07:25.680 --> 00:07:27.480 4 of the 950 events 00:07:27.480 --> 00:07:31.040 were top five events those are separated out into the 00:07:31.040 --> 00:07:32.600 maintenance material 00:07:32.600 --> 00:07:36.459 equipment failure decay age of equipment lighting and small 00:07:36.459 --> 00:07:38.079 animal or bird the 00:07:38.079 --> 00:07:41.959 same thing can be seen at the amount of cottage time that's 00:07:41.959 --> 00:07:42.759 contributed 00:07:42.759 --> 00:07:45.889 contributed to the top five as well as the customers 00:07:45.889 --> 00:07:47.600 affected that's attributed 00:07:47.600 --> 00:07:52.519 to the top five this is just another way of looking at it 00:07:52.519 --> 00:07:54.000 you can see on a 00:07:54.000 --> 00:07:59.589 monthly basis what the top five spread was based upon how 00:07:59.589 --> 00:08:00.240 much of a 00:08:00.240 --> 00:08:03.420 contributor they were now what I want to point out here in 00:08:03.420 --> 00:08:04.600 October November in 00:08:04.600 --> 00:08:07.250 December you're going to see the maintenance part of it go 00:08:07.250 --> 00:08:07.800 up this is 00:08:07.800 --> 00:08:10.189 when we did a lot of feeder sweeps in a in an area that we 00:08:10.189 --> 00:08:11.040 're going to talk 00:08:11.040 --> 00:08:15.300 about these feeder sweeps were pretty intense they went out 00:08:15.300 --> 00:08:15.959 there and took a 00:08:15.959 --> 00:08:18.360 lot of custody and to do this they had to take the 00:08:18.360 --> 00:08:20.000 customers out of power for a 00:08:20.000 --> 00:08:23.069 short time so that's why when you look at the amount of 00:08:23.069 --> 00:08:24.120 time for maintenance 00:08:24.120 --> 00:08:26.319 that's why it's gone up is because they have to do that 00:08:26.319 --> 00:08:27.360 this is not something 00:08:27.360 --> 00:08:30.250 that we really believe is going to be a continual issue for 00:08:30.250 --> 00:08:31.279 us we just wanted to 00:08:31.279 --> 00:08:34.620 get a lot of things done within that first three months to 00:08:34.620 --> 00:08:35.840 try to eliminate 00:08:35.840 --> 00:08:40.950 as many as possible of the issues or errors that we have in 00:08:40.950 --> 00:08:42.440 a specific area 00:08:42.440 --> 00:08:46.690 I've got on the side over here a lot of the items that were 00:08:46.690 --> 00:08:47.799 put on during the 00:08:47.799 --> 00:08:51.460 sweep if you guys are interested in looking at those or 00:08:51.460 --> 00:08:52.759 asking more about 00:08:52.759 --> 00:08:57.360 those thank you very much we can certainly go about them 00:08:57.360 --> 00:08:59.000 and talk to you 00:08:59.000 --> 00:09:01.259 a little bit more about what each of these items are and 00:09:01.259 --> 00:09:01.799 what their 00:09:01.799 --> 00:09:10.200 contribution is to helping us get more reliable power okay 00:09:10.200 --> 00:09:11.360 so comparison start 00:09:11.360 --> 00:09:15.990 now system growth from the distribution standpoint we only 00:09:15.990 --> 00:09:17.240 grew about 1.25 00:09:17.240 --> 00:09:22.399 percent during the 16 17 time frame again our underground 00:09:22.399 --> 00:09:23.840 miles grew which 00:09:23.840 --> 00:09:27.070 led us to be over 57.91 percent of an underground 00:09:27.070 --> 00:09:29.000 distribution system the 00:09:29.000 --> 00:09:32.759 reliability indices as you can see our safety or frequency 00:09:32.759 --> 00:09:34.399 went down however 00:09:34.399 --> 00:09:38.039 you look at Sadie the durations and Katie customer dur 00:09:38.039 --> 00:09:39.080 ations they went up 00:09:39.080 --> 00:09:42.190 there's a reason for this and the reason is this is the 00:09:42.190 --> 00:09:43.639 first year that we've had 00:09:43.639 --> 00:09:48.240 full implementation of the AMI system into the OMS outage 00:09:48.240 --> 00:09:50.080 management system so 00:09:50.080 --> 00:09:53.690 what that means is in the past the time starts on an outage 00:09:53.690 --> 00:09:54.519 whenever you first 00:09:54.519 --> 00:09:57.789 know about it so if people are at home and they don't know 00:09:57.789 --> 00:09:58.559 that their power is 00:09:58.559 --> 00:10:01.500 out and they get home and they call us then that's when the 00:10:01.500 --> 00:10:02.480 clock starts for 00:10:02.480 --> 00:10:05.580 the amount of time that we're attributing this thing with 00:10:05.580 --> 00:10:06.000 the AMI 00:10:06.000 --> 00:10:09.220 system we know within seconds that a person's out and so 00:10:09.220 --> 00:10:10.100 the AMI system 00:10:10.100 --> 00:10:12.789 reports it in and so that's when our clock starts so that 00:10:12.789 --> 00:10:13.200 means your 00:10:13.200 --> 00:10:15.889 durations are going to be just a little bit longer because 00:10:15.889 --> 00:10:17.639 of that so in other 00:10:17.639 --> 00:10:22.639 words we basically established a new baseline for this year 00:10:22.639 --> 00:10:26.399 so we did a heat 00:10:26.399 --> 00:10:29.580 map analysis of the system using the top five cause codes 00:10:29.580 --> 00:10:30.960 and as you can see the 00:10:30.960 --> 00:10:37.299 north east area is the area that has the most has the it 00:10:37.299 --> 00:10:38.840 seems like it has the 00:10:38.840 --> 00:10:42.090 highest number of cause codes it has the highest number of 00:10:42.090 --> 00:10:43.440 heat equipment codes 00:10:43.440 --> 00:10:48.279 events happening this area we know is an area this is area 00:10:48.279 --> 00:10:49.360 that we concentrated a 00:10:49.360 --> 00:10:54.639 lot of our maintenance activities on this is where those 00:10:54.639 --> 00:10:56.639 proactive going out 00:10:56.639 --> 00:10:59.370 there change putting in the animal protection putting in 00:10:59.370 --> 00:11:00.120 the automatic 00:11:00.120 --> 00:11:04.519 fuses etc etc occurred on that thing to reduce them down we 00:11:04.519 --> 00:11:05.159 haven't had a full 00:11:05.159 --> 00:11:10.000 year of data yet for that but we pretty much believe that 00:11:10.000 --> 00:11:11.240 this has been a very 00:11:11.240 --> 00:11:13.720 positive because the number of phone calls coming in from 00:11:13.720 --> 00:11:14.360 that area has 00:11:14.360 --> 00:11:17.159 reduced drastically so we think we've done some good things 00:11:17.159 --> 00:11:17.919 out there this 00:11:17.919 --> 00:11:19.919 will be one of the things that we look at at the end of the 00:11:19.919 --> 00:11:20.600 year once I have a 00:11:20.600 --> 00:11:26.399 full year of data to say did we actually affect that as 00:11:26.399 --> 00:11:29.720 with most utilities we 00:11:29.720 --> 00:11:32.629 like to compare ourselves to everybody so we won't go over 00:11:32.629 --> 00:11:33.600 every one of these 00:11:33.600 --> 00:11:36.889 unless you want me to but just didn't municipal electric 00:11:36.889 --> 00:11:38.159 from a public power 00:11:38.159 --> 00:11:41.940 power standpoint in national and state of Texas level we 00:11:41.940 --> 00:11:43.919 are better there are 00:11:43.919 --> 00:11:46.620 some utilities out there that have got some numbers that 00:11:46.620 --> 00:11:47.679 are better than ours 00:11:47.679 --> 00:11:50.129 there's some that have got some numbers that are worse than 00:11:50.129 --> 00:11:52.360 ours our sister TNPA 00:11:52.360 --> 00:11:56.159 cities Garland Bryan and Greenville they don't they don't 00:11:56.159 --> 00:11:57.360 claim to go to I triple 00:11:57.360 --> 00:12:01.110 e 1366 glass so I can't tell you that they're being lower 00:12:01.110 --> 00:12:02.360 than us by so much 00:12:02.360 --> 00:12:06.620 is an actual apples to apples type comparison because they 00:12:06.620 --> 00:12:07.080 don't go by I 00:12:07.080 --> 00:12:14.970 triple e 1366 okay so we look as I said we do a performance 00:12:14.970 --> 00:12:16.240 calculation we look 00:12:16.240 --> 00:12:20.120 at the substations Denton North last year was the worst 00:12:20.120 --> 00:12:21.679 performing substation 00:12:21.679 --> 00:12:28.759 its availability was 99.95 percent with the highest rank of 00:12:28.759 --> 00:12:29.480 performance last 00:12:29.480 --> 00:12:33.110 year it was seven Kings Road which last year was our worst 00:12:33.110 --> 00:12:34.240 performing substation 00:12:34.240 --> 00:12:37.129 did get some improvement it's now the 15th and we take 00:12:37.129 --> 00:12:38.039 these are all the 00:12:38.039 --> 00:12:40.960 substations that's on our system so we know from the worst 00:12:40.960 --> 00:12:42.279 performing substation 00:12:42.279 --> 00:12:45.710 down to the least worst performing substation and we focus 00:12:45.710 --> 00:12:46.240 a lot of 00:12:46.240 --> 00:12:49.240 attention on what the worst performers are to see if there 00:12:49.240 --> 00:12:50.320 's any thing common 00:12:50.320 --> 00:12:55.269 in that area that we need to attack or pursue same thing 00:12:55.269 --> 00:12:56.960 happens with feeders 00:12:56.960 --> 00:13:04.240 so Denton North 212 is our worst performing feeder for 2017 00:13:04.240 --> 00:13:05.159 followed by 00:13:05.159 --> 00:13:11.289 McKinney 221 Kings Road 222 Locust 221 and Cooper Creek 222 00:13:11.289 --> 00:13:12.000 kind of goes down 00:13:12.000 --> 00:13:15.639 the top five or ten worst performing feeders is a standard 00:13:15.639 --> 00:13:16.720 that the Public 00:13:16.720 --> 00:13:19.980 Utility Commission of Texas asks people to look at of 00:13:19.980 --> 00:13:21.720 course we're not come 00:13:21.720 --> 00:13:25.149 we're not dependent on the PUC of Texas to tell us what we 00:13:25.149 --> 00:13:26.240 need to do but we 00:13:26.240 --> 00:13:29.009 still make those comparisons for ourselves to see how we're 00:13:29.009 --> 00:13:30.080 doing and use 00:13:30.080 --> 00:13:35.980 their standards a feeder a feeder you have substation you 00:13:35.980 --> 00:13:36.799 have a system level 00:13:36.799 --> 00:13:39.970 which is everything that we have out there you have a subst 00:13:39.970 --> 00:13:40.879 ation which is the 00:13:40.879 --> 00:13:43.779 big assets that you see that are placed around the city 00:13:43.779 --> 00:13:44.759 that have the big 00:13:44.759 --> 00:13:47.460 transformers in them and everything else and those subst 00:13:47.460 --> 00:13:48.639 ations feed feeders 00:13:48.639 --> 00:13:51.840 feeders are they the assets that go out and serve the 00:13:51.840 --> 00:13:53.399 customer so they're the 00:13:53.399 --> 00:13:56.500 big wire the big underground wire that goes out and serves 00:13:56.500 --> 00:13:57.620 customers is what a 00:13:57.620 --> 00:14:01.509 feeder is so that's the end game for us is to look at that 00:14:01.509 --> 00:14:02.559 point and where is 00:14:02.559 --> 00:14:07.080 this feeder located is it up in that northwest 00:14:09.000 --> 00:14:12.350 several several of them are up there in that area is Denton 00:14:12.350 --> 00:14:13.279 North as well as 00:14:13.279 --> 00:14:16.100 Kings Row and if you look at that Kings Row has two feeders 00:14:16.100 --> 00:14:16.860 that are on the 00:14:16.860 --> 00:14:20.539 worst performer and Denton North has two feeders on the 00:14:20.539 --> 00:14:22.399 worst performing so yes 00:14:22.399 --> 00:14:25.470 those four feeders are up and usually serving that one area 00:14:25.470 --> 00:14:26.519 that you see as 00:14:26.519 --> 00:14:31.679 worst performing so we do some other looking at this thing 00:14:31.679 --> 00:14:32.480 another heat map 00:14:32.480 --> 00:14:36.389 that we prepare is using the ten on the ten worst 00:14:36.389 --> 00:14:38.360 performing feeders we we 00:14:38.360 --> 00:14:41.559 identify the cost codes the top five cost codes and we plot 00:14:41.559 --> 00:14:42.480 those out there 00:14:42.480 --> 00:14:46.360 on the system as you can see that same area that's 00:14:46.360 --> 00:14:48.440 northeast is still pretty 00:14:48.440 --> 00:14:51.480 much red but there are other areas within the city that 00:14:51.480 --> 00:14:52.559 there is some you 00:14:52.559 --> 00:14:56.820 know events that we need to look at and see what the cause 00:14:56.820 --> 00:14:58.080 is and then equipment 00:14:58.080 --> 00:15:00.779 codes as I said those are all focusing pretty much in the 00:15:00.779 --> 00:15:01.759 same area we don't 00:15:01.759 --> 00:15:04.379 pay a whole lot of attention for study parts of the 00:15:04.379 --> 00:15:05.960 equipment codes that's more 00:15:05.960 --> 00:15:08.279 or less for the engineer geek of us to try to figure out so 00:15:08.279 --> 00:15:09.080 you know is there 00:15:09.080 --> 00:15:12.539 equipment that is failing constantly and if it is is there 00:15:12.539 --> 00:15:13.799 a commonality with 00:15:13.799 --> 00:15:19.480 that equipment do we need to go replace it all etc etc okay 00:15:19.480 --> 00:15:21.340 so 2017 findings the 00:15:21.340 --> 00:15:24.049 top five cause and equipment codes were identified as 00:15:24.049 --> 00:15:26.480 factors in over 60% of all 00:15:26.480 --> 00:15:29.269 the recorded events at the every service level from the 00:15:29.269 --> 00:15:30.679 system the substation the 00:15:30.679 --> 00:15:34.559 feeder level North Lake substation is the worst performing 00:15:34.559 --> 00:15:35.360 substation and 00:15:35.360 --> 00:15:37.730 King Joe substation has moved from being the worst 00:15:37.730 --> 00:15:39.159 performance but it still has 00:15:39.159 --> 00:15:43.070 two of the worst performing feeders in it so what are we 00:15:43.070 --> 00:15:44.360 going to do about this 00:15:44.360 --> 00:15:48.240 what is DME going to do about this for animal protection 00:15:48.240 --> 00:15:49.440 there you're going to 00:15:49.440 --> 00:15:51.429 see on this slide these are the actions that were taken if 00:15:51.429 --> 00:15:52.320 they're standardized 00:15:52.320 --> 00:15:54.919 it means they're now in our construction standards or 00:15:54.919 --> 00:15:56.799 design standards if it's 00:15:56.799 --> 00:16:01.059 says continuous that means that we do this normally anyway 00:16:01.059 --> 00:16:02.200 and then in progress 00:16:02.200 --> 00:16:05.490 is something other that is kind of a study thing for us so 00:16:05.490 --> 00:16:06.200 for animal 00:16:06.200 --> 00:16:10.759 protection we are using rely guard products that's a lot 00:16:10.759 --> 00:16:11.399 what you see out 00:16:11.399 --> 00:16:14.090 here these are the new products that we're using and Brad 00:16:14.090 --> 00:16:15.879 will be able to talk a little bit more about the 00:16:15.879 --> 00:16:20.139 advantages of the rely guard products and then later on in 00:16:20.139 --> 00:16:22.360 the presentation we 00:16:22.360 --> 00:16:24.990 now install animal protection on all of our designs 00:16:24.990 --> 00:16:26.279 everything goes out whenever 00:16:26.279 --> 00:16:29.100 an engineer or technician does a design he puts animal 00:16:29.100 --> 00:16:30.360 protection into the 00:16:30.360 --> 00:16:34.299 estimate on that part of it we have used duct plugs instead 00:16:34.299 --> 00:16:35.440 of air seal on 00:16:35.440 --> 00:16:41.919 polarizers that plugs which are these items air seal is 00:16:41.919 --> 00:16:43.000 basically foam that 00:16:43.000 --> 00:16:45.320 they would put down on the top of the polarizer and 00:16:45.320 --> 00:16:46.639 squirrels didn't have any 00:16:46.639 --> 00:16:48.980 issue with chewing down in the bottom of it and then 00:16:48.980 --> 00:16:50.159 chewing on the cable and 00:16:50.159 --> 00:16:56.340 causing outages they can't chew through metal so we are now 00:16:56.340 --> 00:16:59.879 using these in our polarizers 00:16:59.879 --> 00:17:02.470 our tree trimming program has been very successful we 00:17:02.470 --> 00:17:03.639 continued the tree trimming 00:17:03.639 --> 00:17:06.650 program and if we find areas where hot spots are we go 00:17:06.650 --> 00:17:08.039 ahead and trim that out 00:17:08.039 --> 00:17:11.539 if areas have and we need taller pose we'll certainly put 00:17:11.539 --> 00:17:12.680 in taller pose in 00:17:12.680 --> 00:17:16.190 those areas and we've even tried different things such as 00:17:16.190 --> 00:17:17.000 Fox urine to 00:17:17.000 --> 00:17:20.869 try to eliminate squirrels I wasn't very popular with Brad 00:17:20.869 --> 00:17:21.960 's crews at the time 00:17:21.960 --> 00:17:24.819 when they had to go put it out there it really wasn't that 00:17:24.819 --> 00:17:26.880 effective but we tried 00:17:26.880 --> 00:17:32.000 it from a maintenance standpoint we've replaced damaged and 00:17:32.000 --> 00:17:32.880 missing lightning 00:17:32.880 --> 00:17:36.150 arrestors as well as the missing grounds and down guys this 00:17:36.150 --> 00:17:37.000 was done pretty 00:17:37.000 --> 00:17:40.240 heavily during the feeder sweeps that were performed we are 00:17:40.240 --> 00:17:41.039 going to prepare 00:17:41.039 --> 00:17:45.299 an RFP for infrared testing and strategic placement of 00:17:45.299 --> 00:17:46.359 fault indicators 00:17:46.359 --> 00:17:48.559 this is something other for both operations as well as 00:17:48.559 --> 00:17:49.200 engineering to 00:17:49.200 --> 00:17:52.980 kind of help focus in and narrow in on what causes and what 00:17:52.980 --> 00:17:54.799 the area of what 00:17:54.799 --> 00:17:59.049 the area that the fault has occurred is where that area is 00:17:59.049 --> 00:18:00.000 so it fault current 00:18:00.000 --> 00:18:02.660 indicator basically has a light or some sort of signal that 00:18:02.660 --> 00:18:03.599 lets the crews know 00:18:03.599 --> 00:18:07.200 that down from it it saw the fault and so they know okay 00:18:07.200 --> 00:18:08.119 from this point down 00:18:08.119 --> 00:18:14.200 we got a look okay decay age of material we are doing 00:18:14.200 --> 00:18:15.680 another RFP for a system 00:18:15.680 --> 00:18:18.900 wide pole inspection and inventory from the engineering 00:18:18.900 --> 00:18:20.240 standpoint we're mostly 00:18:20.240 --> 00:18:22.950 wanting to do the pole inspection the pole inspection is 00:18:22.950 --> 00:18:24.039 they hammer the pole 00:18:24.039 --> 00:18:26.809 the test the pole for rot and make sure that the pole is 00:18:26.809 --> 00:18:28.000 good if the pole is not 00:18:28.000 --> 00:18:32.259 good they send it back to us and we replace the pole the 00:18:32.259 --> 00:18:33.519 sweeps are to 00:18:33.519 --> 00:18:35.950 replace if they see any deteriorated insulators or other 00:18:35.950 --> 00:18:36.680 equipment that 00:18:36.680 --> 00:18:39.549 replace those and we are also going to do an RFP for 00:18:39.549 --> 00:18:40.799 infrared testing to 00:18:40.799 --> 00:18:45.680 identify hot connections on the distribution system 00:18:45.680 --> 00:18:47.559 lightning you know 00:18:47.559 --> 00:18:50.000 the sweeps are looking into that replacing damage or 00:18:50.000 --> 00:18:50.960 missing lightning 00:18:50.960 --> 00:18:53.359 arresters and replace damage or missing ground rods and 00:18:53.359 --> 00:18:54.279 guys that's the best 00:18:54.279 --> 00:18:59.859 thing we can do against lightning and material and 00:18:59.859 --> 00:19:02.920 equipment failures we use 00:19:02.920 --> 00:19:05.630 contingency analysis to minimize the number of customers 00:19:05.630 --> 00:19:06.480 effective and now 00:19:06.480 --> 00:19:10.250 it's time what this means is we have several ways that we 00:19:10.250 --> 00:19:11.599 we try to design it 00:19:11.599 --> 00:19:14.309 into the system several ways to serve different areas of 00:19:14.309 --> 00:19:15.279 the city so that if 00:19:15.279 --> 00:19:20.759 we have a failure of a substation or not something subst 00:19:20.759 --> 00:19:23.599 ation or feeder or 00:19:23.599 --> 00:19:26.630 substation bank we have other ways to get that power back 00:19:26.630 --> 00:19:27.799 up fairly quickly so 00:19:27.799 --> 00:19:30.390 that we can then spend the time restoring the power and 00:19:30.390 --> 00:19:31.000 still have 00:19:31.000 --> 00:19:35.549 customers up and when we're working in areas that have 00:19:35.549 --> 00:19:37.880 dated facilities that we 00:19:37.880 --> 00:19:41.740 go ahead and try to be proactive and replace those 00:19:41.740 --> 00:19:44.359 facilities when we can okay 00:19:44.359 --> 00:19:46.890 I've got a quick video here that's going to kind of talk a 00:19:46.890 --> 00:19:47.920 little bit about the 00:19:47.920 --> 00:19:52.650 advantages of the new rely guard products that we got and 00:19:52.650 --> 00:19:54.079 Brad is going to 00:19:54.079 --> 00:19:58.559 kind of talk to you a little bit about that 00:20:07.240 --> 00:20:18.910 when we started looking at this I've been here for 27 years 00:20:18.910 --> 00:20:20.039 to try and figure 00:20:20.039 --> 00:20:22.670 out you know what why the squirrels are getting in there 00:20:22.670 --> 00:20:23.880 what they're doing and 00:20:23.880 --> 00:20:26.990 the main thing that a squirrel does that gives us the 00:20:26.990 --> 00:20:29.160 problem besides you know on 00:20:29.160 --> 00:20:34.039 the transformer for warmth they will they will climb up and 00:20:34.039 --> 00:20:36.079 they will they 00:20:36.079 --> 00:20:40.339 collect all kinds of nuts berries food and they store it 00:20:40.339 --> 00:20:41.799 and so what they do is 00:20:41.799 --> 00:20:45.059 they climb up on the transformer and they try and stuff 00:20:45.059 --> 00:20:46.200 these berries and 00:20:46.200 --> 00:20:50.460 nuts and stuff up inside these squirrel protection and then 00:20:50.460 --> 00:20:51.319 once they get full 00:20:51.319 --> 00:20:54.410 they start tracking over and then that's when you're going 00:20:54.410 --> 00:20:55.640 to have the outage or 00:20:55.640 --> 00:20:57.890 they're going to get their hands in there and they're going 00:20:57.890 --> 00:20:58.559 to make contact 00:20:58.559 --> 00:21:00.920 well they're standing on a transformer and the transformers 00:21:00.920 --> 00:21:02.279 grounded and so 00:21:02.279 --> 00:21:05.460 they're going to make contact with the wire and then that's 00:21:05.460 --> 00:21:06.440 when you know the 00:21:06.440 --> 00:21:09.599 explosion that you hear the fuses blow and that's what's 00:21:09.599 --> 00:21:12.200 causing it and I've 00:21:12.200 --> 00:21:16.869 got one one example I want to show you this is another one 00:21:16.869 --> 00:21:17.200 I can help you pass around if you want to 00:21:17.200 --> 00:21:20.319 but that's one of the old squirrel protection and after a 00:21:20.319 --> 00:21:24.000 while we found out that they start tracking over and they 00:21:24.000 --> 00:21:27.759 start burning a path and once they start tracking then the 00:21:27.759 --> 00:21:31.319 squirrel protection itself kind of becomes a conductor and 00:21:31.319 --> 00:21:32.200 then when the squirrel just 00:21:32.200 --> 00:21:37.150 touches it that's when we have a fault and I learned of a 00:21:37.150 --> 00:21:38.799 new product and it was 00:21:38.799 --> 00:21:42.750 actually designed by a lineman so he had the experience as 00:21:42.750 --> 00:21:45.079 far as you know knowing what the squirrels are doing 00:21:45.079 --> 00:21:48.240 knowing how they're doing it and so he got with another 00:21:48.240 --> 00:21:51.750 company and they designed squirrel protection called Reli-G 00:21:51.750 --> 00:21:56.200 uard and they also impregnate these with a product called 00:21:56.200 --> 00:22:00.200 Reli-Tanium and it's non-flammable. 00:22:00.200 --> 00:22:08.279 It has a flammability rating of VO and I'm sorry and they 00:22:08.279 --> 00:22:11.599 it's a new product it's supposed to be a 15 year product 00:22:11.599 --> 00:22:14.200 and so far we've had really good good luck with them and 00:22:14.200 --> 00:22:16.200 one thing that the squirrels can't do is they can't get 00:22:16.200 --> 00:22:19.720 them off once you lock them on it has a keeper key on it 00:22:19.720 --> 00:22:22.400 and once we set it I mean it's on there the squirrel can't 00:22:22.400 --> 00:22:26.619 raise it up and also the inside of it has a fitting where 00:22:26.619 --> 00:22:28.990 it will grab the skirt of the transformer they cannot pick 00:22:28.990 --> 00:22:29.200 it up and they can't get it off. 00:22:29.200 --> 00:22:31.660 They cannot pick it up and they can't move it they can't 00:22:31.660 --> 00:22:34.910 twist it it's pretty tough to put on but once it's on it's 00:22:34.910 --> 00:22:43.200 on and we're having really good luck with it. 00:22:43.200 --> 00:22:46.569 So the video is playing now and Brad will kind of talk 00:22:46.569 --> 00:22:49.380 about what what they're doing now is they're just going to 00:22:49.380 --> 00:22:52.200 test the circuit this is a controlled circuit that we built 00:22:52.200 --> 00:22:56.269 and we can do arching demos we do it a lot for schools and 00:22:56.269 --> 00:22:57.200 you know different events. 00:22:57.200 --> 00:23:11.230 And now we've installed the old squirrel guard which also 00:23:11.230 --> 00:23:15.230 is passing around and we're using a sausage to simulate you 00:23:15.230 --> 00:23:19.809 know something getting up there touching it and you'll see 00:23:19.809 --> 00:23:23.349 how it will arc up and this is supposed to be our 00:23:23.349 --> 00:23:25.200 protection this was the old style protection. 00:23:25.200 --> 00:23:44.200 But over a period of time it's not protecting anything. 00:23:44.200 --> 00:23:49.200 But the hot dog is cooked. 00:23:49.200 --> 00:24:15.200 Now we're going to install this. 00:24:15.200 --> 00:24:17.500 And now the guys are going to go ahead and you'll see them 00:24:17.500 --> 00:24:20.200 they'll install that new rely guard product on the jumper. 00:24:45.200 --> 00:25:12.099 And now they're going to simulate the same thing again a 00:25:12.099 --> 00:25:14.200 squirrel climbing up there and touching the. 00:25:14.200 --> 00:25:32.200 Touching the cover up. 00:25:32.200 --> 00:25:35.289 And actually rub it all up and down the wire and everything 00:25:35.289 --> 00:25:38.259 and it's it's really a good cover up and only till he gets 00:25:38.259 --> 00:25:41.220 up to the bear conductor does it draw an arc but we're not 00:25:41.220 --> 00:25:44.250 going to get a squirrel up there because if they do happen 00:25:44.250 --> 00:25:47.200 to get up there and they will climb up and get on the line. 00:25:47.200 --> 00:25:50.160 It's kind of like a bird on the wire. I mean they're the 00:25:50.160 --> 00:25:52.200 same potential as the wire itself. 00:25:52.200 --> 00:25:58.250 But this seems I mean this is really creating a good you 00:25:58.250 --> 00:26:02.200 know protection for our system. 00:26:02.200 --> 00:26:04.250 And then here Michael's going to go ahead and just show you 00:26:04.250 --> 00:26:08.380 what a tree limb does. Once it's been on the line you'll 00:26:08.380 --> 00:26:14.059 see it I mean they'll smoke but eventually they're going to 00:26:14.059 --> 00:26:17.200 burn a path. 00:26:17.200 --> 00:26:38.200 That's about the questions about the product. 00:26:38.200 --> 00:26:40.200 When did we start using this product. 00:26:40.200 --> 00:26:47.400 We actually started about almost a year ago. We were just 00:26:47.400 --> 00:26:48.410 but we didn't just jump right into it because we wanted to 00:26:48.410 --> 00:26:49.200 make sure it was going to work for us. 00:26:49.200 --> 00:26:51.970 So we were trying it on different things and we had one of 00:26:51.970 --> 00:26:54.869 their engineers come visit with us and they actually went 00:26:54.869 --> 00:26:57.519 out and we showed them some air switches we're having 00:26:57.519 --> 00:27:00.309 trouble and actually designed a guard to go over the air 00:27:00.309 --> 00:27:02.200 switch steel bracket. 00:27:02.200 --> 00:27:05.319 And we did we did some tests and stuff we've done we've 00:27:05.319 --> 00:27:08.750 done things like this. Now we're using it full force and 00:27:08.750 --> 00:27:11.200 the feeder sweeps. That's what these are doing. 00:27:11.200 --> 00:27:14.130 We actually have to go into the backyards and or on the 00:27:14.130 --> 00:27:17.380 streets wherever the transformers located at rest or the 00:27:17.380 --> 00:27:20.200 underground termination points on the poles. 00:27:20.200 --> 00:27:23.140 And we have to kill it out and then we install this we 00:27:23.140 --> 00:27:26.779 install the ill guard over the wire takes about about 15 to 00:27:26.779 --> 00:27:30.200 20 minutes sometimes a little sooner than that. 00:27:30.200 --> 00:27:34.200 But we're going to get the benefit from it. 00:27:34.200 --> 00:27:37.380 So we'll be able to monitor this in the next few years. Yes 00:27:37.380 --> 00:27:39.200 . See how many we should get good data. 00:27:39.200 --> 00:27:48.200 Didn't try. 00:27:48.200 --> 00:27:51.200 It's used all over our entire system. 00:27:51.200 --> 00:27:54.490 So I mean anytime we come on line they was something it has 00:27:54.490 --> 00:27:57.630 a live guard cover up the old guard and we're we have you 00:27:57.630 --> 00:28:01.009 know so many features in the town that we're just trying to 00:28:01.009 --> 00:28:04.119 start with the ones that are impacted the most and then we 00:28:04.119 --> 00:28:06.200 're just branching out in the service trucks. 00:28:06.200 --> 00:28:08.490 They're doing that constantly when they get on calls when 00:28:08.490 --> 00:28:11.599 they see one. I mean they're they're trying to install 00:28:11.599 --> 00:28:14.200 these as fast as they can as many as they can. 00:28:14.200 --> 00:28:21.200 The North has been yes ma'am. 00:28:21.200 --> 00:28:25.470 And we were at a there's three fingers in the north where 00:28:25.470 --> 00:28:26.200 100% on that. 00:28:26.200 --> 00:28:31.200 And it's the guys worked really hard. 00:28:31.200 --> 00:28:35.759 Is the safety device that we cook the hot dog with is that 00:28:35.759 --> 00:28:36.200 still available. 00:28:36.200 --> 00:28:39.200 Do people still buy and use those. 00:28:39.200 --> 00:28:40.200 These right here. 00:28:40.200 --> 00:28:44.200 They're still available. We don't use them. 00:28:44.200 --> 00:28:49.400 So in that situation that we just saw that products 00:28:49.400 --> 00:28:52.200 installed correctly but not working. 00:28:52.200 --> 00:28:55.160 It's installed correctly but over a period of time that it 00:28:55.160 --> 00:28:58.150 's not dielectrically sound for it and then the ozone I mean 00:28:58.150 --> 00:29:01.019 the sunlight just eats it up and it starts tracking and it 00:29:01.019 --> 00:29:04.200 'll start creating little little lines of track lines. 00:29:04.200 --> 00:29:07.170 And then once it gets to a certain point then it'll 00:29:07.170 --> 00:29:10.609 actually can mail and just cover the bushing. We found them 00:29:10.609 --> 00:29:12.200 where they just melt and go down on the bushing. 00:29:12.200 --> 00:29:15.250 I mean it's just not a good product. They thought it was 00:29:15.250 --> 00:29:16.200 but it wasn't. 00:29:16.200 --> 00:29:18.200 But it's still available on the market. 00:29:18.200 --> 00:29:19.200 Yes sir. 00:29:19.200 --> 00:29:22.200 What's the price point between the two. 00:29:22.200 --> 00:29:27.200 That I don't have the light guard is very expensive. 00:29:27.200 --> 00:29:40.200 I can get that. 00:29:40.200 --> 00:29:43.200 Okay for the light guard products. 00:29:43.200 --> 00:29:49.250 They go anywhere from two hundred and forty seven dollars 00:29:49.250 --> 00:29:55.200 to it looks like three hundred and six dollars each. 00:29:55.200 --> 00:29:58.220 The pole wrap which we've got one over here you haven't 00:29:58.220 --> 00:30:01.200 seen it is is about eight dollars and sixty cents. 00:30:01.200 --> 00:30:04.700 I mean is one hundred and sixty seven dollars and fifty 00:30:04.700 --> 00:30:05.200 cents. 00:30:05.200 --> 00:30:08.200 And that price is for a box of them. It's not individual. 00:30:08.200 --> 00:30:11.200 I think there's twenty five in a box. 00:30:11.200 --> 00:30:13.230 And I would say these other ones are probably going to be 00:30:13.230 --> 00:30:14.200 comparable in price. 00:30:14.200 --> 00:30:17.029 The one the old ones because they all kind of come in the 00:30:17.029 --> 00:30:18.200 same price point. 00:30:18.200 --> 00:30:22.700 So that's about what you're looking at from a price 00:30:22.700 --> 00:30:24.200 standpoint. 00:30:24.200 --> 00:30:26.200 So the cost. 00:30:26.200 --> 00:30:29.200 So the cost is roughly comparable. 00:30:29.200 --> 00:30:34.920 But and and it would end it saves us cost in the time and 00:30:34.920 --> 00:30:37.200 spend in repairs. 00:30:37.200 --> 00:30:38.200 Yes ma'am. 00:30:38.200 --> 00:30:39.200 Yeah. 00:30:39.200 --> 00:30:40.200 Thank you. 00:30:40.200 --> 00:30:41.200 OK. 00:30:41.200 --> 00:30:42.200 Very good. 00:30:42.200 --> 00:30:44.200 Any other questions. 00:30:44.200 --> 00:30:49.200 Somebody want to see the video again. 00:30:49.200 --> 00:30:50.200 Thank you guys. 00:30:50.200 --> 00:30:51.200 Thank you. 00:30:51.200 --> 00:30:54.200 And Brad showed you one of the products. 00:30:54.200 --> 00:30:56.009 Again if you want to see him I can actually leave this if 00:30:56.009 --> 00:30:57.200 you want to see it afterwards. 00:30:57.200 --> 00:30:59.750 But there are different types of products for different 00:30:59.750 --> 00:31:00.200 uses. 00:31:00.200 --> 00:31:03.200 The one he showed you was for transformer bushing. 00:31:03.200 --> 00:31:06.700 They have them for an insulator cover as well as other type 00:31:06.700 --> 00:31:10.200 of things that we use them all that we have out there. 00:31:10.200 --> 00:31:11.200 OK. 00:31:11.200 --> 00:31:14.349 So in closing this I want to kind of tell you a little bit 00:31:14.349 --> 00:31:16.200 about some good news for us. 00:31:16.200 --> 00:31:20.609 APP R P 3 is a destination that that signifies leadership 00:31:20.609 --> 00:31:24.450 in reliability safety workforce development system 00:31:24.450 --> 00:31:25.200 improvement. 00:31:25.200 --> 00:31:28.990 For the past few years we have been at the gold level but I 00:31:28.990 --> 00:31:32.269 'm very happy to tell you that this year at the APP 00:31:32.269 --> 00:31:37.200 conference DME has been moved up to the platinum level for 00:31:37.200 --> 00:31:38.200 reliability. 00:31:38.200 --> 00:31:39.200 Congratulations. 00:31:39.200 --> 00:31:44.200 Very happy with this. 00:31:44.200 --> 00:31:46.200 So that's the end of the formal presentation. 00:31:46.200 --> 00:31:50.200 Any questions. 00:31:50.200 --> 00:31:52.200 Yes sir. 00:31:52.200 --> 00:31:57.200 You mentioned that we were at four nines of uptime right. 00:31:57.200 --> 00:32:01.039 If all you were doing were scheduled maintenance let's just 00:32:01.039 --> 00:32:04.549 say we live in a world where we don't have unexpected out 00:32:04.549 --> 00:32:05.200 ages. 00:32:05.200 --> 00:32:12.200 What would you say your uptime would be percentage wise. 00:32:12.200 --> 00:32:16.460 What we're at four times if we spent all the time on it it 00:32:16.460 --> 00:32:18.200 may go to five nines. 00:32:18.200 --> 00:32:21.200 We're actually at point nine nine eight. 00:32:21.200 --> 00:32:24.200 So we're pretty darn close on the fifth digit. 00:32:24.200 --> 00:32:28.470 But you know it's kind of a typical thing to go to four 00:32:28.470 --> 00:32:29.200 digits. 00:32:29.200 --> 00:32:31.700 So that's why we stop at four digits and the bulk of the 00:32:31.700 --> 00:32:34.000 changes that you're going to make are really the 00:32:34.000 --> 00:32:36.200 installation of this new equipment. 00:32:36.200 --> 00:32:38.750 But basically we're still just going to approach it the way 00:32:38.750 --> 00:32:40.200 been approaching it before. 00:32:40.200 --> 00:32:42.730 Yes sir unless we can think of anything different in the 00:32:42.730 --> 00:32:43.200 area. 00:32:43.200 --> 00:32:46.660 I mean again the feeder sweeps have done a really good job 00:32:46.660 --> 00:32:50.000 of eliminating a lot of the issues that we've had in the 00:32:50.000 --> 00:32:54.200 northeastern quadrant and we're watching that. 00:32:54.200 --> 00:32:57.130 This is a standard installation product that we put 00:32:57.130 --> 00:32:59.200 everywhere now within the city. 00:32:59.200 --> 00:33:02.089 So you know we should be able to see some improvement from 00:33:02.089 --> 00:33:03.200 that standpoint. 00:33:03.200 --> 00:33:05.460 Again some of the duration the reason why the duration went 00:33:05.460 --> 00:33:07.630 up because we now have the meters telling us when they're 00:33:07.630 --> 00:33:09.200 out which is a very positive thing. 00:33:09.200 --> 00:33:12.299 I mean that's something that from an engineering standpoint 00:33:12.299 --> 00:33:15.029 we've always known is that once you get a my hooked into 00:33:15.029 --> 00:33:17.829 your own system your numbers are going to get worse for a 00:33:17.829 --> 00:33:21.200 bit because it's now reporting immediately versus waiting 00:33:21.200 --> 00:33:23.200 maybe eight hours for a person to come home. 00:33:23.200 --> 00:33:25.200 Yeah I don't know anymore. 00:33:25.200 --> 00:33:26.200 I know you know. 00:33:26.200 --> 00:33:28.200 So we did. 00:33:28.200 --> 00:33:30.490 I thought that was an insightful question because a lot of 00:33:30.490 --> 00:33:32.829 the utilities I'm familiar with they actually don't count 00:33:32.829 --> 00:33:35.069 the schedule maintenance as an outage when they do their 00:33:35.069 --> 00:33:37.200 out of these calculations that Jerry does. 00:33:37.200 --> 00:33:39.200 And here I think we go strictly by the book. 00:33:39.200 --> 00:33:42.200 We're not trying to shade anything any different direction. 00:33:42.200 --> 00:33:43.200 So we give it all to you. 00:33:43.200 --> 00:33:46.200 But a lot of places will ignore that in their calculations. 00:33:46.200 --> 00:33:49.200 So I just know for nine is pretty solid. 00:33:49.200 --> 00:33:50.200 Pretty good. 00:33:50.200 --> 00:33:53.630 That fifth nine is you know that's very difficult to you 00:33:53.630 --> 00:33:56.200 know to make that kind of transition. 00:33:56.200 --> 00:33:58.200 So you guys are doing a great job. 00:33:58.200 --> 00:34:00.200 Thank you. 00:34:00.200 --> 00:34:01.200 Thanks everyone. 00:34:01.200 --> 00:34:02.200 Thank you. 00:34:08.199 --> 00:34:09.199 Okay. 00:34:09.199 --> 00:34:14.130 The next next time we have in work session is to receive a 00:34:14.130 --> 00:34:15.199 report. 00:34:15.199 --> 00:34:18.699 Holder discussion and give staff direction regarding the 00:34:18.699 --> 00:34:23.199 customer service fiscal year 2018 19 operating budget. 00:34:23.199 --> 00:34:24.199 Mr. Chairman. 00:34:24.199 --> 00:34:25.199 P.B. members. 00:34:25.199 --> 00:34:27.199 My name is Tony point them the director of finance. 00:34:27.199 --> 00:34:29.199 So I went to very quickly just introduce this item. 00:34:29.199 --> 00:34:31.199 Tiffany Thompson will come up here. 00:34:31.199 --> 00:34:33.699 She's our customer service manager and I've asked her to go 00:34:33.699 --> 00:34:36.130 ahead and walk you through this budget presentation for 00:34:36.130 --> 00:34:37.199 customer service. 00:34:37.199 --> 00:34:39.199 So I have to cover a couple of things. 00:34:39.199 --> 00:34:41.860 The first one is that making this a separate fund does not 00:34:41.860 --> 00:34:43.199 make it a new operation. 00:34:43.199 --> 00:34:46.909 It's an existing operation that has been in the water fund 00:34:46.909 --> 00:34:48.199 for many years. 00:34:48.199 --> 00:34:52.199 We have other internal service funds in the city. 00:34:52.199 --> 00:34:54.730 Those that come to mind are technology services for our 00:34:54.730 --> 00:34:57.199 computers risk management our fleet operation. 00:34:57.199 --> 00:35:00.079 And so this isn't anything different than what we've done 00:35:00.079 --> 00:35:02.199 with other operations within the city. 00:35:02.199 --> 00:35:05.250 And then finally by separating the side of its own 00:35:05.250 --> 00:35:08.840 segregated fund it will still continue to come back to the 00:35:08.840 --> 00:35:12.739 P.B. on an annual basis for review and approval and to seek 00:35:12.739 --> 00:35:15.199 your recommendation back to the city council. 00:35:15.199 --> 00:35:19.059 And so none of those things will change by making this a 00:35:19.059 --> 00:35:20.199 separate fund. 00:35:20.199 --> 00:35:23.139 So I'll have Tiffany come up here walk you through the 00:35:23.139 --> 00:35:24.199 presentation. 00:35:24.199 --> 00:35:35.139 And if you have any questions we'll certainly be happy to 00:35:35.139 --> 00:35:39.199 answer those for you. 00:35:39.199 --> 00:35:41.199 Good morning everyone. 00:35:41.199 --> 00:35:44.199 I'm sorry that I don't have props like hot dogs and. 00:35:44.199 --> 00:35:46.199 So I really feel like I'm going to be disappointed. 00:35:46.199 --> 00:35:47.199 Thanks. 00:35:47.199 --> 00:35:48.199 Yeah. 00:35:48.199 --> 00:35:49.199 Give me that with that. 00:35:49.199 --> 00:35:51.199 So I'll bring s'mores next time we meet. 00:35:51.199 --> 00:35:54.139 I'm Tiffany Thompson customer service manager happy to be 00:35:54.139 --> 00:35:56.780 here this morning to go over our budget presentation 00:35:56.780 --> 00:35:59.199 customer service assist all five utilities. 00:35:59.199 --> 00:36:02.559 We operate the main switch calls coming into this city and 00:36:02.559 --> 00:36:06.079 we also take care of billing and customer service functions 00:36:06.079 --> 00:36:08.199 for 20 other departments. 00:36:08.199 --> 00:36:10.679 So last year we calculated and build over six hundred and 00:36:10.679 --> 00:36:12.199 twenty seven thousand bills. 00:36:12.199 --> 00:36:15.199 We accepted six hundred and sixteen thousand payments. 00:36:15.199 --> 00:36:17.699 We filled it over one hundred and eighty five thousand 00:36:17.699 --> 00:36:18.199 calls. 00:36:18.199 --> 00:36:21.210 We took care of over seventy two thousand customers in our 00:36:21.210 --> 00:36:24.250 lobby operation and we collected and reconciled over two 00:36:24.250 --> 00:36:27.530 hundred sixty eight million dollars worth of revenue in our 00:36:27.530 --> 00:36:28.199 department. 00:36:28.199 --> 00:36:31.599 And our mission and customer service is to help serve and 00:36:31.599 --> 00:36:35.199 educate both our internal and our external customers. 00:36:35.199 --> 00:36:38.659 So the objectives of this presentation is as Tony mentioned 00:36:38.659 --> 00:36:42.199 to discuss the internal creating the internal service fund 00:36:42.199 --> 00:36:46.199 review fund assumptions the financial forecast and review 00:36:46.199 --> 00:36:47.199 our revenues and expenditures and then go over the budget. 00:36:47.199 --> 00:36:51.199 And then go over some additional departmental information. 00:36:51.199 --> 00:36:53.690 So with the proposal for the internal service funds 00:36:53.690 --> 00:36:56.300 currently customer service is housed under the water 00:36:56.300 --> 00:36:57.199 utility fund. 00:36:57.199 --> 00:37:00.699 And it's been that way since 1999 and creating that 00:37:00.699 --> 00:37:04.139 internal service fund helps separate the accounting fund 00:37:04.139 --> 00:37:07.500 that's used to account for the services provided to those 00:37:07.500 --> 00:37:09.199 other services at cost. 00:37:09.199 --> 00:37:12.460 And so we do want to do this because we don't only service 00:37:12.460 --> 00:37:15.619 just water we do all five utilities and a general fund 00:37:15.619 --> 00:37:17.199 functions with that. 00:37:17.199 --> 00:37:20.650 And with this internal service fund creation it's going to 00:37:20.650 --> 00:37:24.119 reduce the required reserve level for the water fund and it 00:37:24.119 --> 00:37:27.199 will help reduce our overall budget expenses. 00:37:27.199 --> 00:37:29.889 So the fund assumptions include that we will not have any 00:37:29.889 --> 00:37:32.199 operating reserve required for this fund. 00:37:32.199 --> 00:37:36.409 Our revenues and expenditures will continue to be based off 00:37:36.409 --> 00:37:39.690 of our percentage of service utilized. So that means if the 00:37:39.690 --> 00:37:41.519 utility or the general fund is represented on a bill if we 00:37:41.519 --> 00:37:44.639 take a phone call for them or revenue that they'll get a 00:37:44.639 --> 00:37:47.199 certain allocation of that for service back to them. 00:37:47.199 --> 00:37:50.199 So nothing changes with how we do that now. 00:37:50.199 --> 00:37:53.690 So our financial forecast we do propose to have a 3 percent 00:37:53.690 --> 00:37:57.130 increase across the board for our personal services going 00:37:57.130 --> 00:38:00.199 forward and then a 2 percent everywhere else. 00:38:00.199 --> 00:38:04.190 The major budget changes that we are anticipating for 2020 00:38:04.190 --> 00:38:06.199 is the addition of 1.5 FTEs. 00:38:06.199 --> 00:38:09.199 That's a full time person and then a part time staff. 00:38:09.199 --> 00:38:12.909 And that's just to be able to continue to have capacity for 00:38:12.909 --> 00:38:16.469 us to handle our increased scope of services that we're 00:38:16.469 --> 00:38:20.130 offering and then also with the increase of our customer 00:38:20.130 --> 00:38:21.199 service base. 00:38:21.199 --> 00:38:26.070 Our highlights. This is how we allocate out our our total 00:38:26.070 --> 00:38:27.199 budget. 00:38:27.199 --> 00:38:30.869 Again that's based off of if the utility is represented on 00:38:30.869 --> 00:38:34.079 a bill if we take a phone call for them and accept the 00:38:34.079 --> 00:38:37.690 revenue is proportionate to what services we provide to 00:38:37.690 --> 00:38:38.199 them. 00:38:38.199 --> 00:38:41.300 And our budgeting highlights this year we do have a slight 00:38:41.300 --> 00:38:44.139 increase in our personal services for materials and 00:38:44.139 --> 00:38:47.440 supplies that's directly related to our bill production and 00:38:47.440 --> 00:38:48.199 postage. 00:38:48.199 --> 00:38:51.199 We have a decrease in that line item budget this year. 00:38:51.199 --> 00:38:52.789 I'm going to talk a little bit more about that in just a 00:38:52.789 --> 00:38:53.199 moment. 00:38:53.199 --> 00:38:56.699 We did have a large increase in our electronic billing 00:38:56.699 --> 00:39:00.440 adoption which is giving us a decrease in this need for for 00:39:00.440 --> 00:39:04.199 funds in this line item and then for our operations. 00:39:04.199 --> 00:39:07.170 This is where we increase the twenty five thousand dollars 00:39:07.170 --> 00:39:08.199 for the plus one. 00:39:08.199 --> 00:39:11.179 But we also have some additional savings in other area and 00:39:11.179 --> 00:39:14.199 overall we have an overall decrease in that line item. 00:39:14.199 --> 00:39:17.929 And so we're maintaining about a five point four million 00:39:17.929 --> 00:39:20.199 dollar budget again this year. 00:39:20.199 --> 00:39:22.860 So our position summary we have fifty one souls and 00:39:22.860 --> 00:39:26.199 customer service which makes up forty two point five FTEs. 00:39:26.199 --> 00:39:29.179 We have a cross section of full time employees part time 00:39:29.179 --> 00:39:32.380 permanent employees and then seasonal staff that we bring 00:39:32.380 --> 00:39:35.199 into assistance with our heavier volume times. 00:39:35.199 --> 00:39:38.840 Thirty of those souls help us with our frontline operations 00:39:38.840 --> 00:39:41.199 to be there for our citizens needs. 00:39:41.199 --> 00:39:44.469 So our accomplishments for 17 18 we did launch a new 00:39:44.469 --> 00:39:47.679 payment portal in August called payment is since that time 00:39:47.679 --> 00:39:49.199 over twenty one thousand of our customers have been paid. 00:39:49.199 --> 00:39:51.909 So we have a total of twenty five thousand of our customers 00:39:51.909 --> 00:39:54.889 have registered through that payment portal that represents 00:39:54.889 --> 00:39:57.199 about 35 percent of our customer base. 00:39:57.199 --> 00:40:00.280 We have an increased electronic billing adoption which went 00:40:00.280 --> 00:40:03.099 up fifty five percent since last year and that's a direct 00:40:03.099 --> 00:40:06.199 reflection on how easy it is to sign up for e-billing now. 00:40:06.199 --> 00:40:08.610 And because of that we were able to have that budget 00:40:08.610 --> 00:40:10.199 reduction in that line item. 00:40:10.199 --> 00:40:13.550 We've also deployed an after call customer satisfaction 00:40:13.550 --> 00:40:14.199 survey. 00:40:14.199 --> 00:40:16.889 We're utilizing that right now so our customers have the 00:40:16.889 --> 00:40:19.480 opportunity to answer three short questions on their 00:40:19.480 --> 00:40:21.199 customer service experience. 00:40:21.199 --> 00:40:23.460 Right now we're seeing about a ninety seven point one 00:40:23.460 --> 00:40:26.199 percent satisfaction rating from our customers on that. 00:40:26.199 --> 00:40:29.260 And one of the last questions that we do ask customers if 00:40:29.260 --> 00:40:32.329 they want to receive a call back on their experience and 00:40:32.329 --> 00:40:35.360 our assumption when we first implemented that is when 00:40:35.360 --> 00:40:36.199 people want to call back. 00:40:36.199 --> 00:40:38.679 Maybe they didn't get everything they needed to get taken 00:40:38.679 --> 00:40:39.199 care of. 00:40:39.199 --> 00:40:42.440 We actually have seen the exact opposite. Customers are 00:40:42.440 --> 00:40:45.530 wanting a call back to accolade the customer service rep 00:40:45.530 --> 00:40:48.559 that assisted them and to really kind of shout their pra 00:40:48.559 --> 00:40:49.199 ises. 00:40:49.199 --> 00:40:51.590 So I think that's a testament to the staff that we have in 00:40:51.590 --> 00:40:52.199 our shop. 00:40:52.199 --> 00:40:54.079 So we're going to continue to deploy that out to customer 00:40:54.079 --> 00:40:55.199 service reps over the summer. 00:40:55.199 --> 00:40:57.659 We're just kind of tweaking some of the questions with that 00:40:57.659 --> 00:41:00.199 but we're pretty excited with those results thus far. 00:41:00.199 --> 00:41:03.329 We've also reduced the AMI disconnect meter reconnection 00:41:03.329 --> 00:41:05.199 time by almost 50 percent. 00:41:05.199 --> 00:41:07.719 So previously if we were doing a reconnection for a 00:41:07.719 --> 00:41:10.530 customer we would send out a service order to DME and then 00:41:10.530 --> 00:41:12.639 they would take care of the rest of the steps in order to 00:41:12.639 --> 00:41:13.199 do that. 00:41:13.199 --> 00:41:16.420 In January we took over the rest of those that process so 00:41:16.420 --> 00:41:20.199 we could holistically do it in-house with customer service. 00:41:20.199 --> 00:41:23.489 And by doing that again we've reduced that reconnection 00:41:23.489 --> 00:41:26.199 time by 50 percent for our customers. 00:41:26.199 --> 00:41:28.579 We're piloting the prepaid program right metering program 00:41:28.579 --> 00:41:29.199 right now. 00:41:29.199 --> 00:41:31.230 We have a couple of our internal staff that are on the 00:41:31.230 --> 00:41:32.199 program right now. 00:41:32.199 --> 00:41:35.380 We're working on training and just mapping out some of the 00:41:35.380 --> 00:41:38.199 additional processes throughout the summer. 00:41:38.199 --> 00:41:40.619 We are going to be educating our customers about the 00:41:40.619 --> 00:41:43.409 availability of that and signing customers up throughout 00:41:43.409 --> 00:41:44.199 the summer. 00:41:44.199 --> 00:41:46.969 And in September and October we're really going to do that 00:41:46.969 --> 00:41:49.579 hard push marketing push to get people to sign up on that 00:41:49.579 --> 00:41:50.199 adoption. 00:41:50.199 --> 00:41:53.400 But we do want to do it gradual so we can kind of grow into 00:41:53.400 --> 00:41:56.039 the program make sure that we know what the lessons learned 00:41:56.039 --> 00:41:58.750 are before we really do that full blown deployment with 00:41:58.750 --> 00:41:59.199 that. 00:41:59.199 --> 00:42:01.909 But as the word gets out if customers want to get on that 00:42:01.909 --> 00:42:04.199 we're going to get them signed up for it. 00:42:04.199 --> 00:42:06.650 We also implemented the new credit collection guidelines 00:42:06.650 --> 00:42:09.199 with your direction in city council which included 00:42:09.199 --> 00:42:12.429 executing a homelessness deposit waiver and we enhanced our 00:42:12.429 --> 00:42:15.199 plus one program criteria and funding. 00:42:15.199 --> 00:42:17.719 So for next year we want to report and proactively respond 00:42:17.719 --> 00:42:20.280 to those assistance needs with the data that we're going to 00:42:20.280 --> 00:42:21.199 be collecting. 00:42:21.199 --> 00:42:24.489 We also are working with DME right now on how we can reduce 00:42:24.489 --> 00:42:26.199 the reconnection charge. 00:42:26.199 --> 00:42:29.260 And so right now they're doing their cost of study survey 00:42:29.260 --> 00:42:32.119 and so we want to bring back what that would be and then 00:42:32.119 --> 00:42:35.179 also what the financial impact of that reduction of that 00:42:35.179 --> 00:42:36.199 rate will be. 00:42:36.199 --> 00:42:38.550 So that's something else that we're going to be bringing 00:42:38.550 --> 00:42:40.199 forth to you and a goal for next year. 00:42:40.199 --> 00:42:42.170 And we also want to continue to increase our adoption of 00:42:42.170 --> 00:42:43.199 self service options. 00:42:43.199 --> 00:42:46.199 So looking at the availability of adding a payment 00:42:46.199 --> 00:42:49.639 arrangement option online and then being able to connect 00:42:49.639 --> 00:42:52.199 and transfer services as well online. 00:42:52.199 --> 00:42:56.059 And so our budget emphasis is to maximize value while 00:42:56.059 --> 00:42:57.199 containing cost. 00:42:57.199 --> 00:42:59.840 And so we accomplish this by focusing on our performance 00:42:59.840 --> 00:43:02.449 metrics and some of the ones that we do is the self service 00:43:02.449 --> 00:43:03.199 adoption. 00:43:03.199 --> 00:43:05.579 So we want to make sure to provide multiple channels for 00:43:05.579 --> 00:43:08.199 customers to be able to pay and do their business online. 00:43:08.199 --> 00:43:10.539 We want to make sure that we're accomplishing first contact 00:43:10.539 --> 00:43:11.199 resolution. 00:43:11.199 --> 00:43:13.650 They call us that one time we want to make sure to take 00:43:13.650 --> 00:43:15.199 care of it that first time. 00:43:15.199 --> 00:43:17.780 So we're not creating duplication of effort for our 00:43:17.780 --> 00:43:20.599 customer and also for our staff and then average speed of 00:43:20.599 --> 00:43:21.199 answer. 00:43:21.199 --> 00:43:23.130 We want to get our citizens where they need to go as 00:43:23.130 --> 00:43:25.579 quickly as possible and answer that phone call within 60 00:43:25.579 --> 00:43:26.199 seconds. 00:43:26.199 --> 00:43:29.980 Right now we're averaging about 36 seconds for us to answer 00:43:29.980 --> 00:43:31.199 that phone call. 00:43:31.199 --> 00:43:34.230 And so the key drivers of our budget is the volumes of our 00:43:34.230 --> 00:43:37.530 customer base, the behaviors of our customers, how we 00:43:37.530 --> 00:43:40.539 respond to that volume and then how do we minimize that 00:43:40.539 --> 00:43:41.199 volume. 00:43:41.199 --> 00:43:43.780 And so we do that by reducing volume and improving 00:43:43.780 --> 00:43:47.199 efficiency while also increasing customer satisfaction. 00:43:47.199 --> 00:43:49.699 So we want to continue to invest in those self service 00:43:49.699 --> 00:43:52.550 options like the new payment portal, being able to sign for 00:43:52.550 --> 00:43:54.199 electronic billing online. 00:43:54.199 --> 00:43:57.199 And a critical measure for us is first contact resolution. 00:43:57.199 --> 00:44:00.099 Again, that's providing that holistic solution the first 00:44:00.099 --> 00:44:01.199 time they call in. 00:44:01.199 --> 00:44:04.090 And we measure this through a robust quality assurance 00:44:04.090 --> 00:44:07.139 program in our department where we actually grade eight to 00:44:07.139 --> 00:44:09.860 ten observations from our frontline staff to make sure that 00:44:09.860 --> 00:44:12.869 they're meeting our key performance indicators and offering 00:44:12.869 --> 00:44:15.199 coaching and development and that continuity of service. 00:44:15.199 --> 00:44:18.199 And so we want to continue to improve efficiency. 00:44:18.199 --> 00:44:21.440 We use a workforce management tool that takes historical 00:44:21.440 --> 00:44:24.250 data and tells us how what the forecast is and how we 00:44:24.250 --> 00:44:26.199 should deploy our resources. 00:44:26.199 --> 00:44:28.789 So that tells us where we should let staff go on break 00:44:28.789 --> 00:44:31.559 lunch, how many staff we should let off for the day so we 00:44:31.559 --> 00:44:34.199 can make sure that we meet our service levels. 00:44:34.199 --> 00:44:36.599 And then we want to continue to increase our process 00:44:36.599 --> 00:44:38.199 improvement and automation. 00:44:38.199 --> 00:44:41.440 And then with the new feedback that we're getting from the 00:44:41.440 --> 00:44:44.909 customer service survey, use what our customers are saying 00:44:44.909 --> 00:44:48.010 and then deploy different action items to assist them 00:44:48.010 --> 00:44:49.199 better as well. 00:44:49.199 --> 00:44:51.539 And so these are the results of our cost containment 00:44:51.539 --> 00:44:54.199 strategies and the changes in our customer behavior. 00:44:54.199 --> 00:44:58.469 So since 08 and 09, our customer base has increased by 18.3 00:44:58.469 --> 00:44:59.199 percent. 00:44:59.199 --> 00:45:01.199 Our lobby volume has decreased by 60 percent. 00:45:01.199 --> 00:45:05.059 We used to see over 108,000 more customers in our lobby 00:45:05.059 --> 00:45:06.199 than we do today. 00:45:06.199 --> 00:45:08.730 And that's a direct reflection in that investment in those 00:45:08.730 --> 00:45:11.320 self-service tools that we've been deploying over the last 00:45:11.320 --> 00:45:12.199 several years. 00:45:12.199 --> 00:45:15.579 Our call center volume has increased by 34.7 percent and 00:45:15.579 --> 00:45:19.199 our average handle time has increased by almost 25 percent. 00:45:19.199 --> 00:45:21.280 And that isn't necessarily a bad thing because we are 00:45:21.280 --> 00:45:23.199 providing that first contact resolution. 00:45:23.199 --> 00:45:25.199 So we're not creating an additional callback. 00:45:25.199 --> 00:45:27.900 And we're also working with those customers that have more 00:45:27.900 --> 00:45:30.429 complex issues that we do need to spend a little bit more 00:45:30.429 --> 00:45:31.199 time with. 00:45:31.199 --> 00:45:34.119 And even though our customer base has increased by that 18. 00:45:34.119 --> 00:45:37.260 3 percent, our average speed of answer, how quickly we're 00:45:37.260 --> 00:45:41.199 answering that phone call, has decreased by 33 percent. 00:45:41.199 --> 00:45:44.510 And with that, a couple of months ago, we had a customer 00:45:44.510 --> 00:45:47.199 bring in her receipt from 1955. 00:45:47.199 --> 00:45:49.409 So 63 years later, she had her original receipt and she 00:45:49.409 --> 00:45:51.199 thought, well, you might want to have it. 00:45:51.199 --> 00:45:54.199 So I thought you would. I guess that's my prop. 00:45:54.199 --> 00:45:55.789 I should have brought it to be cool like you guys, but I 00:45:55.789 --> 00:45:56.199 didn't. 00:45:56.199 --> 00:46:00.809 So it's on the slideshow with that and with that, I'd be 00:46:00.809 --> 00:46:06.010 happy to answer any questions or comments that you may have 00:46:06.010 --> 00:46:06.199 . 00:46:06.199 --> 00:46:13.199 Questions. 00:46:13.199 --> 00:46:17.199 So what was the methodology in 1955 on light and power? 00:46:17.199 --> 00:46:18.199 Because it seems like it's the same thing. 00:46:18.199 --> 00:46:20.199 I'm not sure anybody here was here. 00:46:20.199 --> 00:46:26.199 Questions. I'm sure. 00:46:26.199 --> 00:46:28.199 Do you track first call resolution? 00:46:28.199 --> 00:46:29.199 We sure do. 00:46:29.199 --> 00:46:31.199 How we do you want to know how we track that? 00:46:31.199 --> 00:46:34.300 Well, I mean, I'd like to know what your first call 00:46:34.300 --> 00:46:36.199 resolution percentages. 00:46:36.199 --> 00:46:37.199 Oh, great. It is. 00:46:37.199 --> 00:46:39.199 I don't think you didn't list it there. 00:46:39.199 --> 00:46:42.199 So yeah, it's ninety four point nine percent. 00:46:42.199 --> 00:46:43.199 I just missed it. 00:46:43.199 --> 00:46:45.199 OK. Thank you. 00:46:45.199 --> 00:46:53.199 I had a question on the budget piece, the plus one. 00:46:53.199 --> 00:46:57.199 Which category was that in? Plus one. 00:46:57.199 --> 00:46:59.199 Let's see here. 00:46:59.199 --> 00:47:01.199 It's what line item it is. 00:47:01.199 --> 00:47:03.199 It's under operations. 00:47:03.199 --> 00:47:07.199 Under operations. Yes, sir. 00:47:07.199 --> 00:47:11.869 And that in the eight in the eighteen nineteen budget that 00:47:11.869 --> 00:47:15.199 shows an increase to one twenty five. 00:47:15.199 --> 00:47:17.199 Is that correct? Yes, sir. Correct. 00:47:17.199 --> 00:47:20.199 And did we increase that in seventeen eighteen? 00:47:20.199 --> 00:47:27.079 We actually increase this year, but we have savings that 00:47:27.079 --> 00:47:31.199 will be able to accommodate it. 00:47:31.199 --> 00:47:34.199 Any other? I'm sure there's questions. 00:47:34.199 --> 00:47:37.630 One question, the three percent increase over the five 00:47:37.630 --> 00:47:41.199 years, is that based on historical or how does that drive? 00:47:41.199 --> 00:47:45.190 That is based on my story on that, because that's just what 00:47:45.190 --> 00:47:46.199 we've done in the past. 00:47:46.199 --> 00:47:50.199 But if there is additional methodology. 00:47:50.199 --> 00:47:51.199 That's just a planning number. 00:47:51.199 --> 00:47:53.699 I mean, it approximates the population growth, customer 00:47:53.699 --> 00:47:54.199 growth. 00:47:54.199 --> 00:47:55.199 So it's a plan number. 00:47:55.199 --> 00:47:58.440 We reevaluate that on an annual basis, true it up if we 00:47:58.440 --> 00:47:59.199 need to. 00:47:59.199 --> 00:48:02.300 But for planning purposes, that's just a customary 00:48:02.300 --> 00:48:04.199 percentage that we utilize. 00:48:04.199 --> 00:48:09.199 So how does that compare to actual from previous years? 00:48:09.199 --> 00:48:14.199 Yeah, we know. 00:48:14.199 --> 00:48:16.199 Yeah, we don't have that right now. 00:48:16.199 --> 00:48:18.199 We can get that back to you. 00:48:18.199 --> 00:48:21.250 And just just to let the people know, we do plan to come 00:48:21.250 --> 00:48:24.599 back to you around the twenty fifth of June to finalize 00:48:24.599 --> 00:48:25.199 that. 00:48:25.199 --> 00:48:28.349 We'll bring back any answers to any questions that we don't 00:48:28.349 --> 00:48:29.199 have today. 00:48:29.199 --> 00:48:32.079 But today we are seeking direction from you that if this is 00:48:32.079 --> 00:48:34.559 something that you'd like for us to pursue and breaking 00:48:34.559 --> 00:48:37.829 this out as an internal service fund, then we'll come back 00:48:37.829 --> 00:48:39.199 to you as such around the twenty fifth. 00:48:39.199 --> 00:48:44.199 But we'll get a response to you on that question. 00:48:44.199 --> 00:48:47.289 Yeah, I just wanted to say as far as I'm concerned, I 00:48:47.289 --> 00:48:52.079 really like this idea of separating the having a separate 00:48:52.079 --> 00:48:54.199 internal service fund. 00:48:54.199 --> 00:48:56.199 I actually was had not been aware. 00:48:56.199 --> 00:49:00.469 I don't know about the rest of you that it was lumped 00:49:00.469 --> 00:49:02.199 together with water. 00:49:02.199 --> 00:49:06.199 So that seems to me arbitrary. 00:49:06.199 --> 00:49:08.199 That was a kind of arbitrary. 00:49:08.199 --> 00:49:10.119 I'm sure there was some reason behind it, but it looks 00:49:10.119 --> 00:49:12.000 arbitrary and it doesn't look like it was good for the 00:49:12.000 --> 00:49:13.199 water department either. 00:49:13.199 --> 00:49:15.199 So it's better for water. 00:49:15.199 --> 00:49:16.199 It's better for customer service. 00:49:16.199 --> 00:49:18.199 It's better for the public for transparency. 00:49:18.199 --> 00:49:22.469 And now when questions arise about the about what's being 00:49:22.469 --> 00:49:28.010 spent in the internal service fund, it'll also be easier to 00:49:28.010 --> 00:49:33.199 separate those numbers and and calculate them. 00:49:33.199 --> 00:49:36.099 So anyway, this is an excellent resolution to a problem I 00:49:36.099 --> 00:49:39.199 didn't I didn't even know existed until reading about it. 00:49:39.199 --> 00:49:46.199 But I myself approve very much. 00:49:46.199 --> 00:49:48.199 Yeah, I mean, go ahead. 00:49:48.199 --> 00:49:49.199 No, I approve, too. 00:49:49.199 --> 00:49:51.199 I think it's a great idea to do it this way. 00:49:51.199 --> 00:49:53.199 And I'm sure it started that way. 00:49:53.199 --> 00:49:57.940 Maybe water was the biggest person or department or 00:49:57.940 --> 00:49:59.199 whatever. 00:49:59.199 --> 00:50:03.199 Sometimes you just do things and keep doing them. 00:50:03.199 --> 00:50:07.469 You know, I guess the the obviously other than the than 00:50:07.469 --> 00:50:11.199 having it all in one place where you can see it. 00:50:11.199 --> 00:50:15.059 We've all known that there's been, you know, cost of 00:50:15.059 --> 00:50:17.199 service to all the utilities. 00:50:17.199 --> 00:50:18.199 There's really not any change there. 00:50:18.199 --> 00:50:22.469 I guess a major financial change is going to be the reserve 00:50:22.469 --> 00:50:25.199 requirements for the water fund. 00:50:25.199 --> 00:50:29.460 I mean, that's if we were reserving based upon what we were 00:50:29.460 --> 00:50:33.280 collecting cost of service from all the other utilities, 00:50:33.280 --> 00:50:38.199 that's a that's a huge, huge part of the waterfront. 00:50:38.199 --> 00:50:40.860 That's a big number, as you can see, one and a half to two 00:50:40.860 --> 00:50:42.199 point three million. 00:50:42.199 --> 00:50:44.199 That's that's to me. 00:50:44.199 --> 00:50:51.199 That's a major financial impact for this is doing that. 00:50:51.199 --> 00:50:57.070 So now we go from having more more days and reserves for 00:50:57.070 --> 00:50:58.199 water. 00:50:58.199 --> 00:51:00.199 Yes, it definitely right. 00:51:00.199 --> 00:51:02.199 It's an opportunity. 00:51:02.199 --> 00:51:04.760 It increased the reserve a little bit more than it needed 00:51:04.760 --> 00:51:05.199 to be. 00:51:05.199 --> 00:51:07.670 And we also get questions on occasion for exactly how 00:51:07.670 --> 00:51:09.199 customer service is funded. 00:51:09.199 --> 00:51:11.210 So the way that we've laid that out, I'm hoping that 00:51:11.210 --> 00:51:13.199 explains to the public a little bit better. 00:51:13.199 --> 00:51:16.199 Transparent. 00:51:16.199 --> 00:51:17.199 Yep. Very good. 00:51:17.199 --> 00:51:20.199 Any other questions? 00:51:20.199 --> 00:51:21.199 No. Thank you. 00:51:21.199 --> 00:51:25.199 Thank you. Appreciate it. 00:51:25.199 --> 00:51:28.880 Okay, next, next time we have in the work session is to is 00:51:28.880 --> 00:51:32.659 item C, which is to receive a report, hold a discussion and 00:51:32.659 --> 00:51:37.070 give staff direction regarding the water fiscal year 2018 00:51:37.070 --> 00:51:48.199 19 operating and capital budget. 00:51:48.199 --> 00:51:52.880 So, Mr. Chairman, again, Tony pointed director finance, a 00:51:52.880 --> 00:51:56.199 PB members, thank you for having me today. 00:51:56.199 --> 00:52:00.460 Over the last several months, we've had a lot of internal 00:52:00.460 --> 00:52:04.280 staff discussions, certainly as as you've just seen, 00:52:04.280 --> 00:52:07.869 breaking out the customer service operation from the water 00:52:07.869 --> 00:52:11.199 front was was a result of some of those internal discussions 00:52:11.199 --> 00:52:13.199 feedback that we've gotten in the past. 00:52:13.199 --> 00:52:15.969 And so you'll see the impact of that today and very similar 00:52:15.969 --> 00:52:18.199 to what we've done on the solid waste side. 00:52:18.199 --> 00:52:20.199 We really looked at this operation. 00:52:20.199 --> 00:52:24.599 We've also looked at the CIP program to make sure that that 00:52:24.599 --> 00:52:28.199 those were in line and easily justifiable. 00:52:28.199 --> 00:52:30.199 So I'm happy to present to you today. 00:52:30.199 --> 00:52:33.199 Our proposed budget. 00:52:33.199 --> 00:52:35.429 As you saw in your backup, we do have two options that we 00:52:35.429 --> 00:52:37.699 want to discuss with you today and certainly get your 00:52:37.699 --> 00:52:41.000 feedback and your direction on which option you you would 00:52:41.000 --> 00:52:42.199 you would like for us to do. 00:52:42.199 --> 00:52:47.199 You would like for us to continue to proceed with. 00:52:47.199 --> 00:52:51.469 So, just briefly want to talk with you a little bit about 00:52:51.469 --> 00:52:53.199 our customer base. 00:52:53.199 --> 00:52:57.519 So as you can see, we've had a, you know, roughly a 2% 00:52:57.519 --> 00:53:00.199 increase in our customer base. 00:53:00.199 --> 00:53:04.460 And that goes to something very similar to what we see on 00:53:04.460 --> 00:53:08.750 the population side. We've broken it out for you between 00:53:08.750 --> 00:53:12.860 residential, commercial, wholesale. And so you can see that 00:53:12.860 --> 00:53:14.199 the total growth has been around 2%. 00:53:14.199 --> 00:53:18.570 2015 and 2016 we saw a little bit higher increase that we 00:53:18.570 --> 00:53:21.590 had in the prior two years and certainly last year we 00:53:21.590 --> 00:53:24.199 dropped back down to about 1.5%. 00:53:24.199 --> 00:53:28.909 So, on average, it's been about a 2% growth in our in our 00:53:28.909 --> 00:53:30.199 customers. 00:53:30.199 --> 00:53:37.250 So, I wanted to kind of show you this this this chart here 00:53:37.250 --> 00:53:44.610 and let me say that in the past, the department has brought 00:53:44.610 --> 00:53:51.239 forward to the PB a separate presentation regarding 00:53:51.239 --> 00:53:55.900 customer class and volume. What we've done this time just 00:53:55.900 --> 00:53:57.150 for expediency purposes of we've kind of combined this 00:53:57.150 --> 00:53:58.199 along with the financial trends. 00:53:58.199 --> 00:54:00.699 We have both the loose field treatment plant and also the 00:54:00.699 --> 00:54:04.469 Ray Roberts treatment plant. We have the green shaded area 00:54:04.469 --> 00:54:09.570 represents the loose field treatment plant that's about 25 00:54:09.570 --> 00:54:11.199 29. 00:54:11.199 --> 00:54:16.389 And then we currently have the Ray Roberts, which is the 00:54:16.389 --> 00:54:22.139 first shaded area that adds, I believe about 20 mgd based 00:54:22.139 --> 00:54:27.469 on where our customer demand has been and where our 00:54:27.469 --> 00:54:29.199 production has been. 00:54:29.199 --> 00:54:33.570 This expansion about a 30 mgd expansion to the Ray Roberts 00:54:33.570 --> 00:54:37.969 plant will come somewhere in 2027 when we talk to you a 00:54:37.969 --> 00:54:42.199 little bit about our CIP program will talk to you about. 00:54:42.199 --> 00:54:45.769 We've already started to make plans within the five year C 00:54:45.769 --> 00:54:49.769 IP plan for a $9 million design of that expansion. Again, 00:54:49.769 --> 00:54:53.869 with all these programs will continue to evaluate those as 00:54:53.869 --> 00:54:55.199 we move forward. 00:54:55.199 --> 00:54:58.369 Our production levels have been what our demand is from our 00:54:58.369 --> 00:55:02.650 customers. As you can see, we have a couple of outliers 00:55:02.650 --> 00:55:07.130 here over the last two years where we've actually seen a 00:55:07.130 --> 00:55:10.199 decrease in our peak water usage. 00:55:10.199 --> 00:55:14.469 But again, we continue to budget basically what's 00:55:14.469 --> 00:55:19.579 considered a normal year. That's the blue trend line. The 00:55:19.579 --> 00:55:24.329 red trend line is a dry year. The green trend line is a wet 00:55:24.329 --> 00:55:28.840 year. And so we budget based on a normal year for 00:55:28.840 --> 00:55:31.199 production purposes. 00:55:31.199 --> 00:55:34.250 One of the water assumptions, some of the assumptions that 00:55:34.250 --> 00:55:37.159 have gone into this forecast is that all rates are based on 00:55:37.159 --> 00:55:40.010 cost of service. We do have a cost of service rate model 00:55:40.010 --> 00:55:41.199 that we utilize. 00:55:41.199 --> 00:55:46.230 We maintain a debt service coverage ratio of 1.25% or 00:55:46.230 --> 00:55:49.829 higher. That's a standard that's utilized by most bond 00:55:49.829 --> 00:55:53.130 rating agencies, but it's also part of our debt policy for 00:55:53.130 --> 00:55:56.590 our utilities is to maintain that, maintain that not just 00:55:56.590 --> 00:56:00.199 as a utility system, but for each individual utility. 00:56:00.199 --> 00:56:03.659 We have standard targets that we've had historically here 00:56:03.659 --> 00:56:07.309 at the City of Denton. 100% revenue funding of our 00:56:07.309 --> 00:56:11.539 distribution system replacements, 25% revenue funding, and 00:56:11.539 --> 00:56:15.269 75% debt funding of any treatment plant infrastructure 00:56:15.269 --> 00:56:19.199 expansion primarily or just infrastructure. 00:56:19.199 --> 00:56:23.059 And then our target has been on the reserve side on the 00:56:23.059 --> 00:56:27.550 operating reserve, 33% to 50%. This is a customary tool 00:56:27.550 --> 00:56:31.329 that's used when you have a range of targets to allow you 00:56:31.329 --> 00:56:36.199 flexibility and that way, you know, there's a floor of 33%, 00:56:36.199 --> 00:56:41.179 but it can be as high as 50% and we manage to those targets 00:56:41.179 --> 00:56:45.199 , about 120 to 180 day range. 00:56:45.199 --> 00:56:48.570 Also, the last two pieces here, multi-year financial 00:56:48.570 --> 00:56:52.480 planning to minimize rate increases. If you recall for last 00:56:52.480 --> 00:56:56.139 year's presentation, there was an assumed 2% increase in 00:56:56.139 --> 00:56:59.869 rates for the five-year plan. In both scenarios that we 00:56:59.869 --> 00:57:03.199 have for you today, those have been eliminated. 00:57:03.199 --> 00:57:07.039 And, you know, some of that has to do with the fact that we 00:57:07.039 --> 00:57:10.880 've pulled out this customer service operation that was 00:57:10.880 --> 00:57:14.869 building on top of that reserve that it won't do that now. 00:57:14.869 --> 00:57:19.460 And then finally, rate revenue forecast is based on 145 00:57:19.460 --> 00:57:21.199 gallons per customer per day. 00:57:21.199 --> 00:57:24.469 So some cost containment strategies that we've utilized, 00:57:24.469 --> 00:57:27.719 not just this year, but really, really starting last year 00:57:27.719 --> 00:57:31.010 was to improve our debt service efficiency by balancing CIP 00:57:31.010 --> 00:57:34.269 s and our cash flows, making sure that we're issuing debt, 00:57:34.269 --> 00:57:37.690 that we're transferring money over to our capital program 00:57:37.690 --> 00:57:41.389 as those projects are coming forward and we begin to enc 00:57:41.389 --> 00:57:43.199 umber those funds. 00:57:43.199 --> 00:57:47.469 We also include a assumed salary savings for just normal 00:57:47.469 --> 00:57:51.800 attrition and turnover within our operation. We reduced 00:57:51.800 --> 00:57:55.329 revenue funded capital in 19 by 2 million to level out the 00:57:55.329 --> 00:57:58.159 five-year. And so we've tried to smooth that out on what we 00:57:58.159 --> 00:58:00.199 're contributing to our capital program. 00:58:00.199 --> 00:58:03.199 And then we removed customer service, as we've talked to 00:58:03.199 --> 00:58:05.960 you already, from this budget to better reflect the 00:58:05.960 --> 00:58:09.289 operating days and the reserves. The only piece that's now, 00:58:09.289 --> 00:58:12.349 that's kept in the water fund is water's contributions and 00:58:12.349 --> 00:58:16.469 expenditure to that internal service fund and that's 00:58:16.469 --> 00:58:24.199 utilized to, as part of the calculation for the reserve. 00:58:24.199 --> 00:58:27.340 Like every business and public enterprise that we have, 00:58:27.340 --> 00:58:30.280 there are certain risks associated and so we wanted to 00:58:30.280 --> 00:58:33.190 point those out for you just so that you know that we're 00:58:33.190 --> 00:58:36.369 cognizant of these things and might be coming in the future 00:58:36.369 --> 00:58:39.199 that might impact this financial forecast. 00:58:39.199 --> 00:58:42.730 Raw water transmission lines costs, the Lewisville Dam 00:58:42.730 --> 00:58:46.170 repair, that's an issue that you've heard in the paper 00:58:46.170 --> 00:58:50.070 recently. Obviously I've already talked a little bit about 00:58:50.070 --> 00:58:54.090 this 30MGD expansion for Ray Roberts that we'll continue to 00:58:54.090 --> 00:58:55.199 evaluate. 00:58:55.199 --> 00:59:00.039 It's currently outside of our planning window, other than 00:59:00.039 --> 00:59:04.199 we have a $9 million plan design in 2022. 00:59:04.199 --> 00:59:08.659 And another transmission line replacements funding is also 00:59:08.659 --> 00:59:11.780 an issue that we need to be aware of. And then age and 00:59:11.780 --> 00:59:14.679 condition of Lewisville pump station. And then finally we 00:59:14.679 --> 00:59:19.199 do have a declining per capita water usage. 00:59:19.199 --> 00:59:22.960 We've seen that over the last couple of years. We believe 00:59:22.960 --> 00:59:26.409 that some of it, or a large part of it has to do with just 00:59:26.409 --> 00:59:30.289 the fact that our customers have more efficient appliances 00:59:30.289 --> 00:59:34.130 within their home, maybe a little bit more cognizant of the 00:59:34.130 --> 00:59:36.199 water issues in the area. 00:59:36.199 --> 00:59:39.949 So the two options that we wanted to talk to you about 00:59:39.949 --> 00:59:44.260 today, and let me say that our recommendation to you today 00:59:44.260 --> 00:59:48.079 is option one, but certainly if the PUB would like to 00:59:48.079 --> 00:59:53.199 entertain option two, certainly that's your prerogative. 00:59:53.199 --> 00:59:57.469 So option two does include a 2% rate decrease across the 00:59:57.469 --> 01:00:01.449 entire system. We'll be coming back to you in a future 01:00:01.449 --> 01:00:05.650 meeting to talk to you about what that means specifically 01:00:05.650 --> 01:00:09.769 to each individual rate class as we model that within our 01:00:09.769 --> 01:00:11.199 rate model. 01:00:11.199 --> 01:00:15.820 And then option two, and so option one is an option two 01:00:15.820 --> 01:00:20.550 that eliminates any future rate increases as well that 01:00:20.550 --> 01:00:25.800 previously been included. Option two, basically this is a 01:00:25.800 --> 01:00:28.989 no rate increase next year or any of the other four years 01:00:28.989 --> 01:00:30.199 of the five year plan. 01:00:30.199 --> 01:00:33.690 But what we've done is because there is additional reserves 01:00:33.690 --> 01:00:37.269 or above the minimum reserve, we've increased the amount of 01:00:37.269 --> 01:00:40.630 revenue funding capital and decreased the amount of debt 01:00:40.630 --> 01:00:43.199 that we'll plan to issue in the future. 01:00:43.199 --> 01:00:47.199 So those are option one, option two. 01:00:47.199 --> 01:00:51.789 So just quickly, I wanted to walk you through our option 01:00:51.789 --> 01:00:56.989 one forecast. As you can see here, we in this forecast, the 01:00:56.989 --> 01:01:02.199 2% decrease in rate revenue, no increases in the future. 01:01:02.199 --> 01:01:08.059 Our reserve target or our reserve ends at about 20.746 01:01:08.059 --> 01:01:13.079 million, but yet that's still a little bit above where our 01:01:13.079 --> 01:01:19.420 minimum range is about 15.5 million, maximum is 23. So 01:01:19.420 --> 01:01:23.199 again, we're managing to that range. 01:01:23.199 --> 01:01:27.630 If you look out in the out years, we stay pretty well above 01:01:27.630 --> 01:01:32.139 each one of those, the minimums. And so we think this is a 01:01:32.139 --> 01:01:35.199 good solid plan for the community. 01:01:35.199 --> 01:01:42.199 Our debt service remains above 1.25 each year of the plan. 01:01:42.199 --> 01:01:46.869 And so again, just wanted to just reiterate this plan is a 01:01:46.869 --> 01:01:52.199 2% decrease for next year, no rate increases in the future. 01:01:52.199 --> 01:01:57.239 Option two is the no rate changes. And again, as I 01:01:57.239 --> 01:02:01.159 mentioned, what this plan does, it reduces the amount of 01:02:01.159 --> 01:02:05.139 debt service that is planned to be issued going forward in 01:02:05.139 --> 01:02:07.199 each of those last four years. 01:02:07.199 --> 01:02:10.840 Now we evaluate, just so the board knows, we evaluate every 01:02:10.840 --> 01:02:14.050 year where our CIP program is, and before we issue any 01:02:14.050 --> 01:02:17.760 bonds, we make those decisions. The last two years, we've 01:02:17.760 --> 01:02:20.760 not had to issue any debt for this utility and we'll 01:02:20.760 --> 01:02:23.199 continue to do that as we go forward. 01:02:23.199 --> 01:02:27.099 And so we'll only issue the debt when those projects are 01:02:27.099 --> 01:02:28.199 ready to go. 01:02:28.199 --> 01:02:32.530 And so within this plan, as I mentioned, it's a little bit 01:02:32.530 --> 01:02:37.320 better as far as our operating reserves for fiscal year 19, 01:02:37.320 --> 01:02:42.980 we're at about 18.4 million out to the final year of 2023, 01:02:42.980 --> 01:02:45.199 18.8 million. 01:02:45.199 --> 01:02:48.960 Again, each one of those years is well above the minimum 01:02:48.960 --> 01:02:52.880 range for the financial forecast or for the targets that we 01:02:52.880 --> 01:02:55.199 've established for this fund. 01:02:55.199 --> 01:02:59.059 Some of the highlights for you, as you can see, this is a 01:02:59.059 --> 01:03:02.539 breakdown and we've given you a three year history of where 01:03:02.539 --> 01:03:06.199 those revenues have been by each individual class. 01:03:06.199 --> 01:03:09.989 I will mention that the cost of service that you see here 01:03:09.989 --> 01:03:14.449 for General Fund, electric, wastewater, and solid waste are 01:03:14.449 --> 01:03:18.389 attributable to some of the management oversight that's 01:03:18.389 --> 01:03:22.679 included in the water fund, our utility administration that 01:03:22.679 --> 01:03:25.909 oversees some of these functions that are outside of this 01:03:25.909 --> 01:03:26.199 fund. 01:03:26.199 --> 01:03:30.449 And so there'll still be some revenues that are coming into 01:03:30.449 --> 01:03:33.199 this fund to recover some of those costs. 01:03:33.199 --> 01:03:38.099 Our budget highlights on the expenditure side, as you can 01:03:38.099 --> 01:03:43.010 see, we do break these out by classification, you know, 01:03:43.010 --> 01:03:47.199 heavy concentration here in our debt service. 01:03:47.199 --> 01:03:51.469 And so we'll continue, like I mentioned, we'll continue to 01:03:51.469 --> 01:03:55.429 evaluate that going forward, only issue the debt that we 01:03:55.429 --> 01:03:59.199 actually need for the projects that are ready to go. 01:03:59.199 --> 01:04:02.369 So currently, where our rates are for just wanted to give 01:04:02.369 --> 01:04:05.469 you kind of a brief picture again, this is all subject to 01:04:05.469 --> 01:04:06.199 change. 01:04:06.199 --> 01:04:10.059 But our current rates is this yellow bar that's where we 01:04:10.059 --> 01:04:14.699 currently are for a customer that's utilizing about 920,000 01:04:14.699 --> 01:04:18.159 gallons per year on the residential side, with a 2% 01:04:18.159 --> 01:04:22.199 decrease that slightly moves us to the left of that. 01:04:22.199 --> 01:04:26.460 We anticipate that some of these comparable utilities will 01:04:26.460 --> 01:04:30.199 likely be seeing increases in water rates this next year. 01:04:30.199 --> 01:04:32.630 We've still not been able to confirm that they're still 01:04:32.630 --> 01:04:34.199 also working on their budgets. 01:04:34.199 --> 01:04:37.079 But as we get that information, we'll bring that back to 01:04:37.079 --> 01:04:39.199 the PAB to let you know where they are. 01:04:39.199 --> 01:04:40.199 Yes, ma'am. 01:04:40.199 --> 01:04:44.199 Increases, did you mean decreases? 01:04:44.199 --> 01:04:47.300 These comparable utilities will likely see increases in 01:04:47.300 --> 01:04:48.199 their rates. 01:04:48.199 --> 01:04:49.199 Increases, okay. 01:04:49.199 --> 01:04:50.199 Yes, correct. 01:04:50.199 --> 01:04:53.980 So with this proposed decrease, we'll actually be further 01:04:53.980 --> 01:04:56.199 to the left of this comparison. 01:04:56.199 --> 01:04:57.199 Good, thanks. 01:04:57.199 --> 01:04:59.199 Yes, ma'am. 01:04:59.199 --> 01:05:01.670 For a commercial customer, again, this is, again, the 01:05:01.670 --> 01:05:02.199 impact. 01:05:02.199 --> 01:05:05.110 Again, we'll need to put all this into our model and bring 01:05:05.110 --> 01:05:07.769 that back to you to get you a better idea of where we're 01:05:07.769 --> 01:05:09.199 actually going to be. 01:05:09.199 --> 01:05:11.199 This assumes a 2% decrease. 01:05:11.199 --> 01:05:15.769 Again, as this information becomes available for what these 01:05:15.769 --> 01:05:20.199 utilities are going to be doing, we'll bring that back. 01:05:20.199 --> 01:05:22.530 But likely this will continue to push us further to the 01:05:22.530 --> 01:05:25.199 left where we are, even with our commercial customers. 01:05:25.199 --> 01:05:30.860 And then finally, we show you a commercial customer with 01:05:30.860 --> 01:05:36.199 200,000 gallons of usage per year. 01:05:36.199 --> 01:05:40.199 So that wraps up my piece of the presentation. 01:05:40.199 --> 01:05:41.829 We can either, if you have questions, we can go through 01:05:41.829 --> 01:05:44.469 that now, or the department is going to come up and go 01:05:44.469 --> 01:05:46.199 through their presentation. 01:05:46.199 --> 01:05:49.199 But whatever you would like, yes, ma'am. 01:05:49.199 --> 01:05:54.329 On personal services, I always look at actuals from prior 01:05:54.329 --> 01:05:55.199 years. 01:05:55.199 --> 01:06:01.800 Why are we going from roughly $6.8 million in actuals for 01:06:01.800 --> 01:06:06.199 personal services to $8.85? 01:06:06.199 --> 01:06:11.199 We don't have any FD counties in that. 01:06:11.199 --> 01:06:14.199 We don't have any pre-staff in there, right? 01:06:14.199 --> 01:06:16.199 Two? 01:06:16.199 --> 01:06:18.199 No, some customer service. 01:06:18.199 --> 01:06:41.199 We have a lot of salary savings in the previous years. 01:06:41.199 --> 01:06:44.559 Each year in the past, we have a lot of turnover in salary 01:06:44.559 --> 01:06:47.199 savings, so that's why they're lower. 01:06:47.199 --> 01:06:50.699 We budget each year based on all the employees that we have 01:06:50.699 --> 01:06:53.199 fully being there for the full year. 01:06:53.199 --> 01:06:55.199 So there is a difference in that. 01:06:55.199 --> 01:06:58.699 And we can get you how many positions were empty in the 01:06:58.699 --> 01:07:01.199 previous years, if you'd like. 01:07:01.199 --> 01:07:02.199 You answered the question. 01:07:02.199 --> 01:07:03.199 Thank you. 01:07:03.199 --> 01:07:04.199 Excellent. 01:07:04.199 --> 01:07:06.900 That would be interesting to see, because I know we have 01:07:06.900 --> 01:07:08.199 unfilled positions. 01:07:08.199 --> 01:07:12.199 We budget for them, but they go unfilled. 01:07:12.199 --> 01:07:16.469 So if we're actually getting to what the actual filled 01:07:16.469 --> 01:07:19.199 positions would be, is that what we're saying? 01:07:19.199 --> 01:07:20.199 Correct. 01:07:20.199 --> 01:07:22.750 And what we can do is, with the other question that was 01:07:22.750 --> 01:07:26.039 asked on customer service, we can bring that back to the P 01:07:26.039 --> 01:07:28.199 AB and show you what that trend has been. 01:07:28.199 --> 01:07:29.199 Okay. 01:07:29.199 --> 01:07:31.199 Okay. 01:07:31.199 --> 01:07:33.199 Other questions? 01:07:33.199 --> 01:07:34.199 I had a question. 01:07:34.199 --> 01:07:38.920 To me, it seems, just looking at the two options, it seems 01:07:38.920 --> 01:07:45.869 counterintuitive that you'd have a rate decrease and have 01:07:45.869 --> 01:07:50.199 less net loss than you would. 01:07:50.199 --> 01:07:53.230 But I just want to point out that it looks like it's coming 01:07:53.230 --> 01:07:55.199 out of revenue-funded capital. 01:07:55.199 --> 01:07:59.000 The no rate increase, there's more revenue-funded capital 01:07:59.000 --> 01:08:00.199 in that number. 01:08:00.199 --> 01:08:01.199 That's correct. 01:08:01.199 --> 01:08:02.199 Is that correct? 01:08:02.199 --> 01:08:04.199 Correct. 01:08:04.199 --> 01:08:06.760 Again, the plan would be to issue less debt and revenue 01:08:06.760 --> 01:08:08.199 fund more of that capital. 01:08:08.199 --> 01:08:09.199 Right. 01:08:09.199 --> 01:08:14.239 And also, on the 145-gallon per customer per day, I know it 01:08:14.239 --> 01:08:16.199 's been trending down. 01:08:16.199 --> 01:08:18.199 You said it was a two-year trend. 01:08:18.199 --> 01:08:21.199 I don't know if two years is a trend. 01:08:21.199 --> 01:08:25.199 It could be just a phenomenon. 01:08:25.199 --> 01:08:35.789 But looking at the wet years versus dry years, it's hard to 01:08:35.789 --> 01:08:42.390 look at it 12 months because you may get rain in certain 01:08:42.390 --> 01:08:45.659 times of the year when you expect your water usage to be up 01:08:45.659 --> 01:08:47.199 and you didn't use it. 01:08:47.199 --> 01:08:55.569 And so I think that's what we saw. We had an extremely wet 01:08:55.569 --> 01:08:56.199 year before last, and it was down. 01:08:56.199 --> 01:09:01.229 But then not as quite a wet year, almost a normal year, and 01:09:01.229 --> 01:09:03.199 it was down as well. 01:09:03.199 --> 01:09:07.460 And it's not so much the amount of rain, it's the timing of 01:09:07.460 --> 01:09:09.199 when the rain happens. 01:09:09.199 --> 01:09:13.060 I will tell you, and I do have that here for you, the 01:09:13.060 --> 01:09:18.199 gallons per customer per day in 2013 was about 158. 01:09:18.199 --> 01:09:21.199 In 2014, it went down to 138. 01:09:21.199 --> 01:09:23.199 2015, 140. 01:09:23.199 --> 01:09:25.199 2016, 140. 01:09:25.199 --> 01:09:28.199 2017, 134. 01:09:28.199 --> 01:09:33.199 We're estimating 142 for this year. 01:09:33.199 --> 01:09:36.199 And so that is something that we're cognizant of. 01:09:36.199 --> 01:09:39.180 Again, Mr. Chairman, I'm not sure that three years, four 01:09:39.180 --> 01:09:42.390 years is a trend, but it's certainly something we're aware 01:09:42.390 --> 01:09:45.069 of and it's something that we may need to take action 01:09:45.069 --> 01:09:46.199 before too long. 01:09:46.199 --> 01:09:49.140 So it is something we're aware of. It's something that we 01:09:49.140 --> 01:09:50.199 do track. 01:09:50.199 --> 01:09:53.380 >> I would just add, Mr. Chairman, on page six, the water, 01:09:53.380 --> 01:09:56.390 the future risks and mitigation, this is something I 01:09:56.390 --> 01:09:58.199 promised him I'd bring up. 01:09:58.199 --> 01:10:03.520 But these are all huge costs. It's something that we manage 01:10:03.520 --> 01:10:07.420 the reserves very closely. We're trying to be as customer 01:10:07.420 --> 01:10:09.199 friendly as we can in terms of our needs. 01:10:09.199 --> 01:10:11.199 We're asking for what we need at this point. 01:10:11.199 --> 01:10:14.119 But there's a lot of large projects out there that are 01:10:14.119 --> 01:10:17.319 requiring several years of advanced planning in terms of 01:10:17.319 --> 01:10:19.199 when we're issuing the debt. 01:10:19.199 --> 01:10:21.399 So I think it's just always something you're pointing out 01:10:21.399 --> 01:10:23.199 the volatility of funding, you're right. 01:10:23.199 --> 01:10:25.970 And there's also some definite risks out there that are 01:10:25.970 --> 01:10:28.779 high dollar ones that we just want to make sure everybody 01:10:28.779 --> 01:10:30.199 is completely aware of. 01:10:30.199 --> 01:10:32.199 >> Okay. 01:10:32.199 --> 01:10:34.199 >> Any questions? 01:10:34.199 --> 01:10:38.199 >> I have a question. Maybe I'm looking at this wrong. 01:10:38.199 --> 01:10:44.800 But under option one on the budget, 2% rate decrease and we 01:10:44.800 --> 01:10:51.399 're showing plan, am I looking at this right, the revenue of 01:10:51.399 --> 01:10:54.199 43.128? 01:10:54.199 --> 01:10:57.199 >> The 2% is actually for fiscal year '19. 01:10:57.199 --> 01:10:58.199 >> Okay. 01:10:58.199 --> 01:11:04.199 >> Yeah. So the total revenue there is 44.9 million. 01:11:04.199 --> 01:11:10.199 >> Okay. Versus the 45 if you had no rate change. 01:11:10.199 --> 01:11:13.199 >> Yes, versus 45 and option two. 01:11:13.199 --> 01:11:14.199 >> Okay. Thank you. 01:11:14.199 --> 01:11:15.199 >> Yes, sir. 01:11:15.199 --> 01:11:18.380 >> And I would just add to the questions that have been 01:11:18.380 --> 01:11:20.199 asked about the decrease. 01:11:20.199 --> 01:11:23.279 The other thing we're really trying to do is not add to the 01:11:23.279 --> 01:11:24.199 debt burden. 01:11:24.199 --> 01:11:29.039 It's very obvious in 2023, 2024, when that next expansion 01:11:29.039 --> 01:11:32.739 becomes necessary to plan for it, you know, we're trying to 01:11:32.739 --> 01:11:34.199 create some room. 01:11:34.199 --> 01:11:36.399 So to the extent that we've got additional reserves right 01:11:36.399 --> 01:11:38.199 now, we can pay for revenue funded capital. 01:11:38.199 --> 01:11:39.199 We're doing that. 01:11:39.199 --> 01:11:41.829 But we're very concerned about how can we retire as much 01:11:41.829 --> 01:11:44.479 debt before we're going to have to, you know, bring on 01:11:44.479 --> 01:11:46.199 additional debt for that next plan expansion. 01:11:46.199 --> 01:11:52.199 So that really is driving most of our mindset right now. 01:11:52.199 --> 01:11:54.649 >> I'll go ahead and ask Dr. Banks will come up here and he 01:11:54.649 --> 01:11:57.060 'll walk you through kind of the departmental section of 01:11:57.060 --> 01:11:58.199 this presentation. 01:11:58.199 --> 01:11:59.199 Yes, ma'am. 01:11:59.199 --> 01:12:04.409 >> I just wanted to say just to point out first that I 01:12:04.409 --> 01:12:10.529 applaud the proposed rate decrease and it's good news to 01:12:10.529 --> 01:12:15.199 hear about the reduction in per capita water usage. 01:12:15.199 --> 01:12:19.470 And as you mentioned, you know, that part of the cause or 01:12:19.470 --> 01:12:23.560 maybe most of it is due to just improvements in technology 01:12:23.560 --> 01:12:26.199 that don't waste as much water. 01:12:26.199 --> 01:12:31.119 But it's also the case that water has a rate structure that 01:12:31.119 --> 01:12:36.010 encourages conservation by just by default, by having a 01:12:36.010 --> 01:12:39.920 higher rate for commercial and a lower rate for residential 01:12:39.920 --> 01:12:40.199 . 01:12:40.199 --> 01:12:44.750 And I have always liked that and I have always thought that 01:12:44.750 --> 01:12:49.560 , you know, wanted to see that policy at least explored with 01:12:49.560 --> 01:12:52.199 our electric company as well. 01:12:52.199 --> 01:12:56.460 I was wondering one question I had regarding that is, you 01:12:56.460 --> 01:13:01.430 know, to your knowledge, have there ever been complaints 01:13:01.430 --> 01:13:06.409 from commercial customers that, you know, what about why do 01:13:06.409 --> 01:13:09.199 residents pay less than we do? 01:13:09.199 --> 01:13:12.560 Not to my knowledge. I'm looking at Dr. Banks. No, not to 01:13:12.560 --> 01:13:13.199 our knowledge. 01:13:13.199 --> 01:13:17.460 Okay. Well, and that's that's wonderful to hear. So anyway, 01:13:17.460 --> 01:13:18.199 thank you. 01:13:18.199 --> 01:13:23.310 Morning board members, Kenny Banks, general manager of 01:13:23.310 --> 01:13:28.750 utilities. I'm here to give the departmental presentation 01:13:28.750 --> 01:13:34.470 component of the water utilities presentation. I appreciate 01:13:34.470 --> 01:13:39.199 the opportunity to bring this information to you. 01:13:39.199 --> 01:13:42.829 We'll talk a little bit about our accomplishments to start 01:13:42.829 --> 01:13:47.029 out with for 1718. We started our five year update of the 01:13:47.029 --> 01:13:49.199 water wastewater impact fees. 01:13:49.199 --> 01:13:52.229 We're currently working with the capital improvements 01:13:52.229 --> 01:13:55.390 advisory committee, which is a group that is put together 01:13:55.390 --> 01:13:57.199 to review those impact fees. 01:13:57.199 --> 01:14:00.689 Initially, we will be bringing those back to you later this 01:14:00.689 --> 01:14:01.199 year. 01:14:01.199 --> 01:14:04.729 We started the 25 year water distribution master plan. We 01:14:04.729 --> 01:14:08.020 completed a preliminary design for solids handling for the 01:14:08.020 --> 01:14:11.100 Louisville water treatment plant and we're moving into 01:14:11.100 --> 01:14:12.199 final design. 01:14:12.199 --> 01:14:16.010 Very important project for us. The solids handling there 01:14:16.010 --> 01:14:19.770 has become a bit of a challenge and and this will allow us 01:14:19.770 --> 01:14:23.869 to more effectively dewater the solids and will also help 01:14:23.869 --> 01:14:26.199 out on the wastewater side as well. 01:14:26.199 --> 01:14:31.199 We completed the Lake Louisville buoy installation project. 01:14:31.199 --> 01:14:35.260 This is the buoy line that goes in on the what is known as 01:14:35.260 --> 01:14:38.199 the party cove on Lake Louisville. 01:14:38.199 --> 01:14:42.470 Basically where the intake structure is on right there by 01:14:42.470 --> 01:14:44.199 the I 35 bridge. 01:14:44.199 --> 01:14:48.199 We, I'm sorry. 01:14:48.199 --> 01:14:53.130 We completed a chlorine boosting facility at the South 01:14:53.130 --> 01:14:58.329 waste elevated storage tower. This is the storage tower 01:14:58.329 --> 01:15:03.199 that is on the lively road that is supplying the Rose Ranch 01:15:03.199 --> 01:15:04.199 community. 01:15:04.199 --> 01:15:07.289 It's far out in the system and and bit of a challenge to 01:15:07.289 --> 01:15:10.659 deal with with regards to turnover in the water at the tank 01:15:10.659 --> 01:15:14.100 during certain times of the year or so an important project 01:15:14.100 --> 01:15:17.319 to get get in there and and make sure the water quality is 01:15:17.319 --> 01:15:21.199 as high as it could possibly be in that facility. 01:15:21.199 --> 01:15:24.829 We did also complete our water distribution projects in 01:15:24.829 --> 01:15:28.920 advance of the plan bond funded street reconstruction work. 01:15:28.920 --> 01:15:32.010 This is a very important issue for both water and 01:15:32.010 --> 01:15:36.020 wastewater to get in there, evaluate those lines, make sure 01:15:36.020 --> 01:15:39.199 that if a street project is going in. 01:15:39.199 --> 01:15:41.890 Those lines need to be replaced based on our asset 01:15:41.890 --> 01:15:45.069 management or condition assessments. We want to get in 01:15:45.069 --> 01:15:48.029 there and get those done as a part of that construction 01:15:48.029 --> 01:15:51.199 process so that we are as cost effective as we can be. 01:15:51.199 --> 01:15:55.960 And also, so we only disturb the neighborhood or inconven 01:15:55.960 --> 01:15:58.199 ience to citizens one time. 01:15:58.199 --> 01:16:02.090 Some goals that we have coming up for the upcoming year is 01:16:02.090 --> 01:16:06.069 to complete our five year update of our wastewater impact 01:16:06.069 --> 01:16:10.430 fee study complete the 25 year water distribution master 01:16:10.430 --> 01:16:11.199 plan. 01:16:11.199 --> 01:16:14.140 We are currently in process of working on our 10 year 01:16:14.140 --> 01:16:17.159 utility management study item was brought to you as a work 01:16:17.159 --> 01:16:18.199 session item. 01:16:18.199 --> 01:16:20.199 A few meetings back on that. 01:16:20.199 --> 01:16:23.470 This is a charter requirement and we're actively working on 01:16:23.470 --> 01:16:24.199 that now. 01:16:24.199 --> 01:16:27.430 We're beginning construction of the Lake Louisville water 01:16:27.430 --> 01:16:30.539 treatment plant phase two rehabilitation and the solids 01:16:30.539 --> 01:16:34.010 handling projects so design was done last year we're moving 01:16:34.010 --> 01:16:38.029 into the actual treatment, our actual implementation of 01:16:38.029 --> 01:16:41.199 that treatment plant project. 01:16:41.199 --> 01:16:44.729 This is a big project. It has a lot of moving parts. A lot 01:16:44.729 --> 01:16:48.100 of it is related to our our switch gear and our pump motor 01:16:48.100 --> 01:16:51.579 system that's out there that needs to be rehabilitated is 01:16:51.579 --> 01:16:55.199 going to involve the construction of a of a new building 01:16:55.199 --> 01:17:00.529 out there that will house our skater system and some of the 01:17:00.529 --> 01:17:02.199 technology necessary to run the plant. 01:17:02.199 --> 01:17:06.859 And then also it will involve some rehabilitation of some 01:17:06.859 --> 01:17:11.500 of the treatment technologies there at the plant. We are 01:17:11.500 --> 01:17:14.199 going to complete the Ray Roberts treatment plan and 01:17:14.199 --> 01:17:17.050 equipment assessment move into final design for plant 01:17:17.050 --> 01:17:18.199 rehabilitation. 01:17:18.199 --> 01:17:23.920 As Tony mentioned earlier that that plant right now is a 20 01:17:23.920 --> 01:17:29.510 million gallon per day plant. It's designed in four phases 01:17:29.510 --> 01:17:34.119 it can go up to 100 M.G.D. and basically it's designed to 01:17:34.119 --> 01:17:37.590 go 20 30 for the first phase and then 20 30 for the second 01:17:37.590 --> 01:17:38.199 phase. 01:17:38.199 --> 01:17:41.369 So as we move into the project of doing the 30 M.G.D. 01:17:41.369 --> 01:17:44.329 expansion that's right on the outside of our five year CIP 01:17:44.329 --> 01:17:47.270 right now we want to be sure that we have rehabilitated and 01:17:47.270 --> 01:17:51.470 assess the 20 M.G.D. so it's in good shape prior to moving 01:17:51.470 --> 01:17:53.199 into that 30 M.G.D. expansion. 01:17:53.199 --> 01:17:56.770 So this is part of that project. We are implementing a 01:17:56.770 --> 01:18:00.539 water info master program basically a computer assisted 01:18:00.539 --> 01:18:04.460 decision making program for our water line infrastructure 01:18:04.460 --> 01:18:08.029 replacements just to help us be even more efficient and 01:18:08.029 --> 01:18:11.800 have a better understanding of our assets so that we can do 01:18:11.800 --> 01:18:14.420 a better job coordinating with the streets department and 01:18:14.420 --> 01:18:18.199 wastewater department on those service replacements. 01:18:18.199 --> 01:18:22.060 So our budget emphasis is really about water system 01:18:22.060 --> 01:18:25.460 reliability and sustainability. We want to be sure that our 01:18:25.460 --> 01:18:28.039 we plan and implement for replacements of our aging 01:18:28.039 --> 01:18:31.149 infrastructure around the city and then certainly plan and 01:18:31.149 --> 01:18:34.470 implement our capital improvement programs to support the 01:18:34.470 --> 01:18:37.199 community growth that we anticipate. 01:18:37.199 --> 01:18:40.000 A couple of process improvements that we're we've 01:18:40.000 --> 01:18:43.380 implemented and some that we're looking at we've converted 01:18:43.380 --> 01:18:46.109 from paper map books to digital systems for water 01:18:46.109 --> 01:18:49.199 distribution which has made the infield work a lot more 01:18:49.199 --> 01:18:50.199 effective. 01:18:50.199 --> 01:18:55.039 We're more effectively integrating and using our geographic 01:18:55.039 --> 01:18:59.340 information systems and our computer maintenance and 01:18:59.340 --> 01:19:04.000 programs for software to basically plan and prioritize our 01:19:04.000 --> 01:19:08.770 water distribution line replacements and coordinate again 01:19:08.770 --> 01:19:11.199 with the streets department. 01:19:11.199 --> 01:19:14.510 It's all about trying to make that as quick as we possibly 01:19:14.510 --> 01:19:17.789 can and as coordinated as possibly as we possibly can so 01:19:17.789 --> 01:19:21.279 that we don't implement any delays throughout that entire 01:19:21.279 --> 01:19:22.199 process. 01:19:22.199 --> 01:19:24.819 So future process improvements are to improve our 01:19:24.819 --> 01:19:27.829 efficiency and cost effectiveness on our water main line 01:19:27.829 --> 01:19:30.890 replacements develop a permanent system for handling and 01:19:30.890 --> 01:19:33.869 disposing of solids as I've said solids have become a bit 01:19:33.869 --> 01:19:36.199 of a challenge at the Louisville plant. 01:19:36.199 --> 01:19:39.010 We are currently using a temporary fix which is a large 01:19:39.010 --> 01:19:42.029 pond system out there that allows the solids to settle and 01:19:42.029 --> 01:19:44.199 then we decant the water off the top. 01:19:44.199 --> 01:19:48.609 We need to move to a permanent solution of dewatering those 01:19:48.609 --> 01:19:52.569 solids and then just continuing to improve our asset 01:19:52.569 --> 01:19:54.199 management program. 01:19:54.199 --> 01:19:56.199 Position summary real quick. 01:19:56.199 --> 01:20:08.500 A couple of things about this. We have added two positions 01:20:08.500 --> 01:20:11.340 basically a deputy director position for water wastewater 01:20:11.340 --> 01:20:14.010 that's currently unfilled and we have consolidated the 01:20:14.010 --> 01:20:16.430 water and wastewater crews under a single water and 01:20:16.430 --> 01:20:19.199 wastewater superintendents so the water and wastewater 01:20:19.199 --> 01:20:22.199 superintendent position is a new position. 01:20:22.199 --> 01:20:26.460 So we've added those two and then we had a halftime admin 01:20:26.460 --> 01:20:30.579 position that we actually removed from the budget so that's 01:20:30.579 --> 01:20:36.420 the difference between the 102 and the 103.5 that you see 01:20:36.420 --> 01:20:39.199 in the in this position summary. 01:20:39.199 --> 01:20:48.029 A couple of other things that we've done kind of a small 01:20:48.029 --> 01:20:56.340 version of what you saw with customer service. We have a 01:20:56.340 --> 01:20:57.000 group called the field service technical group that had 01:20:57.000 --> 01:20:59.199 employees that were co that were funded from both the water 01:20:59.199 --> 01:21:02.199 fun and the wastewater fun. 01:21:02.199 --> 01:21:05.840 The majority of that group resides in the wastewater funds 01:21:05.840 --> 01:21:09.590 and what we've done is we've actually moved those positions 01:21:09.590 --> 01:21:13.090 to be completely under the wastewater fun and then we're 01:21:13.090 --> 01:21:16.670 going to handle the work that those positions do for water 01:21:16.670 --> 01:21:18.199 simply by a transfer. 01:21:18.199 --> 01:21:22.449 We are adding electronic tech to provide maintenance of the 01:21:22.449 --> 01:21:26.069 new equipment that is related to the ozone system at Lake 01:21:26.069 --> 01:21:27.199 Louisville. 01:21:27.199 --> 01:21:31.470 We have a lot of instrumentation there chemical control 01:21:31.470 --> 01:21:35.810 turbidity analyzers chlorine analyzers etc. So that 01:21:35.810 --> 01:21:38.199 position is being added. 01:21:38.199 --> 01:21:43.140 Five year capital improvement plan just to kind of hit the 01:21:43.140 --> 01:21:45.199 highlights on this. 01:21:45.199 --> 01:21:48.430 You will have a lot more detail when you get the full 01:21:48.430 --> 01:21:52.029 budget books on this and one of the things that I wanted to 01:21:52.029 --> 01:21:55.409 to point out on this is kind of how you work through the 01:21:55.409 --> 01:21:58.199 five year CIP plan in the budget book. 01:21:58.199 --> 01:22:02.750 So you'll notice over on the left hand side there are group 01:22:02.750 --> 01:22:07.619 assignment numbers and then those assignments numbers have 01:22:07.619 --> 01:22:12.100 a particular category associated with them. So those 01:22:12.100 --> 01:22:16.319 categories are some in this five year CIP plan. But as you 01:22:16.319 --> 01:22:18.770 go into the individual groups you can actually see detailed 01:22:18.770 --> 01:22:21.199 sheets for each one of those in the full budget. 01:22:21.199 --> 01:22:24.649 So when the full budget group book gets to you you'll be 01:22:24.649 --> 01:22:28.340 able to go through the capital improvement section on a on 01:22:28.340 --> 01:22:31.720 a home business unit basis and actually see each one of 01:22:31.720 --> 01:22:35.199 these five year CIP plans by their group assignment number. 01:22:35.199 --> 01:22:38.270 So it kind of helps you see what we're doing in each one of 01:22:38.270 --> 01:22:42.170 the individual departments. We've got a very aggressive 01:22:42.170 --> 01:22:46.199 plan as you can you can see a lot of moving parts there. 01:22:46.199 --> 01:22:49.449 We've broken it out here in terms of the grand total and 01:22:49.449 --> 01:22:52.489 the amount that we anticipate right now in terms of 01:22:52.489 --> 01:22:56.199 required bond sales for each of the years going forward. 01:22:56.199 --> 01:23:00.069 As Tony mentioned earlier we're going to continue to look 01:23:00.069 --> 01:23:03.970 at our existing funding and of course always try to reduce 01:23:03.970 --> 01:23:06.199 those bond sales when we can. 01:23:06.199 --> 01:23:11.260 I asked Lori to include the group assignment numbers on 01:23:11.260 --> 01:23:16.420 these major CIP projects that I've listed for you. So you 01:23:16.420 --> 01:23:19.199 'll see the numbers over here to the to the side. 01:23:19.199 --> 01:23:23.890 And basically these are some of our major projects that we 01:23:23.890 --> 01:23:29.010 've got coming up with the associated timeline with each one 01:23:29.010 --> 01:23:29.199 . 01:23:29.199 --> 01:23:32.689 Just real quick the North South Phase 3 big project that we 01:23:32.689 --> 01:23:35.989 've got going on about thirty nine hundred linear feet of 01:23:35.989 --> 01:23:39.609 forty two inch transmission main along Bonnie Bray that 01:23:39.609 --> 01:23:44.199 runs all the way from I-35 to scripture. 01:23:44.199 --> 01:23:47.460 The all red system is one that we've had on the books for 01:23:47.460 --> 01:23:51.319 quite for quite a while. It's a twenty four and thirty inch 01:23:51.319 --> 01:23:53.199 water transmission line. 01:23:53.199 --> 01:23:57.470 Design is anticipated to be completed by the middle of June 01:23:57.470 --> 01:24:01.109 and right away acquisition completed by the end of 01:24:01.109 --> 01:24:02.199 September. 01:24:02.199 --> 01:24:05.199 We hope to move into construction by January of next year. 01:24:05.199 --> 01:24:08.609 The solids handling we've we've talked about Ray Roberts 01:24:08.609 --> 01:24:10.199 performance upgrade. 01:24:10.199 --> 01:24:14.079 We've talked about basically getting that system in line in 01:24:14.079 --> 01:24:16.199 anticipation of the expansion. 01:24:16.199 --> 01:24:20.100 Basically the Riney Road Booster pump station is a pump 01:24:20.100 --> 01:24:24.279 station that is needed for capacity to serve the North Dent 01:24:24.279 --> 01:24:25.199 on area. 01:24:25.199 --> 01:24:29.470 The raw transmission line to is part of our line assessment 01:24:29.470 --> 01:24:33.470 for our big transmission assets that are moving from the 01:24:33.470 --> 01:24:38.149 Lake Louisville pump station to the Spencer plant treatment 01:24:38.149 --> 01:24:39.199 facility. 01:24:39.199 --> 01:24:42.829 And so we're in process right now. We've completed the 01:24:42.829 --> 01:24:46.199 first phase of repairs on the 30 inch line. 01:24:46.199 --> 01:24:49.420 This is a dual line system a 30 inch and a twenty seven. We 01:24:49.420 --> 01:24:54.850 will complete the 30 inch next year and then we will start 01:24:54.850 --> 01:24:58.739 moving into the second phase of the project which is to 01:24:58.739 --> 01:25:00.199 look at the twenty seven inch. 01:25:00.199 --> 01:25:02.970 We're timing this because we have to be water those systems 01:25:02.970 --> 01:25:05.689 . We've got to bring it back online during the summertime to 01:25:05.689 --> 01:25:07.199 handle the irrigation needs. 01:25:07.199 --> 01:25:16.479 Disinfection conversion for the raw water are the Ray 01:25:16.479 --> 01:25:20.659 Roberts water treatment plant is basically to take a 01:25:20.659 --> 01:25:25.010 convert a gas based system for your chlorine to a liquid 01:25:25.010 --> 01:25:29.199 base much safer much easier to control. 01:25:29.199 --> 01:25:33.060 And then we've got the design of Ray Roberts coming up get 01:25:33.060 --> 01:25:36.659 the design out of the out of the way first for that nine 01:25:36.659 --> 01:25:40.399 million dollars and then make our plans for when we're 01:25:40.399 --> 01:25:44.189 going to actually implement the construction phase 01:25:44.189 --> 01:25:47.670 condition assessment of the southwest and east side 01:25:47.670 --> 01:25:49.199 transmission lines. 01:25:49.199 --> 01:25:52.039 A lot of our transmission assets are are getting relatively 01:25:52.039 --> 01:25:54.680 old and start with. So we're starting to take a look at 01:25:54.680 --> 01:25:57.430 some of the larger ones and doing condition assessments to 01:25:57.430 --> 01:26:00.199 see what shape they're in and then plan accordingly. 01:26:00.199 --> 01:26:03.539 And then the Louisville Dam safety modifications are 01:26:03.539 --> 01:26:07.170 basically just our payment to the Corps of Engineer for the 01:26:07.170 --> 01:26:10.819 repair work that's going on for Louisville Dam big project 01:26:10.819 --> 01:26:14.319 that's estimated at a 15 million dollar total we're 01:26:14.319 --> 01:26:18.000 programming and three point seven five million on a yearly 01:26:18.000 --> 01:26:20.199 basis for the next four years. 01:26:20.199 --> 01:26:24.060 I have provided a map in your presentation that goes 01:26:24.060 --> 01:26:27.880 through each one of these major projects and got them 01:26:27.880 --> 01:26:32.010 listed by the individual year color coded so you can kind 01:26:32.010 --> 01:26:35.199 of match those up with the with the sheet. 01:26:35.199 --> 01:26:39.960 And basically that's all I've got. So I'd be glad to answer 01:26:39.960 --> 01:26:42.199 any questions. 01:26:42.199 --> 01:26:45.199 I do have one more question. 01:26:45.199 --> 01:26:49.460 I want to make sure if we do the 2 percent rate decrease 01:26:49.460 --> 01:26:53.609 after 2023 we're not going to have to have a huge rate 01:26:53.609 --> 01:26:58.199 increase because of these other projects that are at risk. 01:26:58.199 --> 01:27:02.060 That is definitely something that we're looking at the 01:27:02.060 --> 01:27:06.199 declining GPCD we're watching every year stepping forward. 01:27:06.199 --> 01:27:12.000 And so the exact year in which that project is going to be 01:27:12.000 --> 01:27:16.529 implemented is uncertain. We'll get more certain as we move 01:27:16.529 --> 01:27:18.829 towards it. But yes there will be a large amount of debt 01:27:18.829 --> 01:27:20.199 incurred to do that project. 01:27:20.199 --> 01:27:23.619 It's going to be one of the biggest capital projects that 01:27:23.619 --> 01:27:27.199 we've had since the actual construction of the plant. 01:27:27.199 --> 01:27:35.699 And I guess the strategy is to hit debt or well we're 01:27:35.699 --> 01:27:41.199 hitting revenue revenue funded capital. 01:27:41.199 --> 01:27:45.199 This looks pretty heavy the next three or four years. 01:27:45.199 --> 01:27:47.199 Versus debt. 01:27:47.199 --> 01:27:57.199 And so I guess the strategy is to make room for the debt. 01:27:57.199 --> 01:27:57.199 So there's not a need for it. 01:27:57.199 --> 01:28:03.199 One thing you hate to do is give something. 01:28:03.199 --> 01:28:06.560 Give do a rate decrease and have to come back five years 01:28:06.560 --> 01:28:07.199 later. 01:28:07.199 --> 01:28:11.470 As Susan said that's as long as the strategy is to make 01:28:11.470 --> 01:28:15.899 room for that and looking back at our operating budget I 01:28:15.899 --> 01:28:21.859 mean our debt service ratios seem to be in good shape to 2 01:28:21.859 --> 01:28:24.199 plus over that time. 01:28:24.199 --> 01:28:32.199 So that's seems to be a sound strategy. 01:28:32.199 --> 01:28:34.810 Yeah we're we're definitely paying attention to it and I 01:28:34.810 --> 01:28:37.539 keep going back to the risk mitigation risk and mitigation 01:28:37.539 --> 01:28:40.430 and it's one of those things where this is our best plan 01:28:40.430 --> 01:28:41.199 today. 01:28:41.199 --> 01:28:44.199 And we'll continue watching how our reserves go. 01:28:44.199 --> 01:28:47.930 You know how the revenues are affected and but yeah we're 01:28:47.930 --> 01:28:50.680 trying to create as much room as we possibly can for the 01:28:50.680 --> 01:28:51.199 debt. 01:28:51.199 --> 01:28:54.699 So when we have good years we're investing in revenue 01:28:54.699 --> 01:28:58.479 funded capital but as long as we're staying within those 01:28:58.479 --> 01:29:02.409 bands that the P.B.A. Council sent with regard to reserves 01:29:02.409 --> 01:29:04.199 we feel pretty good right now. 01:29:04.199 --> 01:29:08.199 But there's still more analysis that needs to take place. 01:29:08.199 --> 01:29:12.460 I think like I said with solid waste this isn't our money 01:29:12.460 --> 01:29:15.779 this is the customer's money so we never want to be 01:29:15.779 --> 01:29:19.869 charging more than we have to or keep more of their money 01:29:19.869 --> 01:29:22.199 in reserves than we have to. 01:29:22.199 --> 01:29:24.600 I just want to make sure we're not going to have to do 10 01:29:24.600 --> 01:29:26.199 percent and 24 or something. 01:29:26.199 --> 01:29:30.020 But I think it's sound as best as it can be for what we 01:29:30.020 --> 01:29:31.199 know today. 01:29:31.199 --> 01:29:39.850 I did notice on group 36 replacement of lines that ends in 01:29:39.850 --> 01:29:43.460 2020 so there's no we don't we really don't think there's 01:29:43.460 --> 01:29:46.199 any lines that need to be replaced after that. 01:29:46.199 --> 01:29:50.470 Well yeah there will be but that that that we're loading up 01:29:50.470 --> 01:29:54.489 heavy on the front end on that purpose to try to level that 01:29:54.489 --> 01:29:55.199 out. 01:29:55.199 --> 01:29:58.289 Is that part of the assessment the condition assessment 01:29:58.289 --> 01:29:59.199 will tell us. 01:29:59.199 --> 01:30:02.810 Yes on the on the transmission side we'll be able to have a 01:30:02.810 --> 01:30:06.340 better handle on right now we've got a we've got a I think 01:30:06.340 --> 01:30:10.380 a very healthy amount in for the 27 inch transmission line 01:30:10.380 --> 01:30:14.199 the other transmission line assets. 01:30:14.199 --> 01:30:18.069 I'm not as certain on but we'll have a much better sense of 01:30:18.069 --> 01:30:22.199 where we're at after that condition assessments done. 01:30:22.199 --> 01:30:23.199 Okay. 01:30:23.199 --> 01:30:28.199 Other questions. 01:30:28.199 --> 01:30:32.199 Thanks. Thanks. 01:30:32.199 --> 01:30:33.199 Okay. 01:30:33.199 --> 01:30:37.199 That concludes our work session. 01:30:37.199 --> 01:30:40.199 We have. 01:30:40.199 --> 01:30:43.199 We do have a closed. 01:30:43.199 --> 01:30:47.199 We do need to go into a closed meeting. 01:30:47.199 --> 01:30:50.199 Because we have an action item. 01:30:50.199 --> 01:30:53.199 In open session when we come back so. 01:30:53.199 --> 01:30:59.779 If this time would ask that we can be into a closed meeting 01:30:59.779 --> 01:31:01.199 it's 10. 01:31:01.199 --> 01:31:09.199 Okay we're back into our open open meeting at 1028 AM. 01:31:09.199 --> 01:31:12.199 May the 7th. 01:31:12.199 --> 01:31:15.199 2018. 01:31:15.199 --> 01:31:18.199 First item we have under. 01:31:18.199 --> 01:31:23.199 Individual consideration is to the draft minutes. 01:31:23.199 --> 01:31:27.199 The public utility board meeting of April 23rd. 01:31:27.199 --> 01:31:32.199 2018 or there any questions on these comments. 01:31:32.199 --> 01:31:34.199 Corrections. 01:31:34.199 --> 01:31:35.199 Yes, I. 01:31:35.199 --> 01:31:39.199 There was the one vote that. 01:31:39.199 --> 01:31:41.199 Where there was a. 01:31:41.199 --> 01:31:43.199 Where I was the dissenting vote. 01:31:43.199 --> 01:31:46.199 And I'm trying to bring this up right now. 01:31:46.199 --> 01:31:48.199 I'm trying to bring this up right now. 01:31:48.199 --> 01:31:52.199 And. 01:31:52.199 --> 01:31:55.199 The reason for my dissent wasn't given. 01:31:55.199 --> 01:31:57.199 The dissent wasn't explained. 01:31:57.199 --> 01:31:58.199 And I think that, 01:31:58.199 --> 01:32:00.000 and there may have been some other times where this was the 01:32:00.000 --> 01:32:00.199 case and 01:32:00.199 --> 01:32:01.199 I didn't. 01:32:01.199 --> 01:32:03.199 Catch it. But I think in general. 01:32:03.199 --> 01:32:09.199 When there's a dissenting opinion. 01:32:09.199 --> 01:32:12.199 If the reason is stated by the dissenter that that, 01:32:12.199 --> 01:32:14.199 that reason should be in the minutes. 01:32:14.199 --> 01:32:17.199 And I think that's something that I would prefer to see. 01:32:17.199 --> 01:32:21.199 Just something I prefer to see. So however. 01:32:21.199 --> 01:32:25.199 However you want that to be worded. 01:32:25.199 --> 01:32:28.199 I think. 01:32:28.199 --> 01:32:31.199 I mean, in the item. 01:32:31.199 --> 01:32:36.199 Perhaps under the comments. 01:32:36.199 --> 01:32:38.199 When it's during the discussion of the item. 01:32:38.199 --> 01:32:39.199 Those are recorded. So. 01:32:39.199 --> 01:32:44.199 I think that's something that I would prefer to see. 01:32:44.199 --> 01:32:46.479 And I did, I did state it. So I stated my reasons in the 01:32:46.479 --> 01:32:47.199 recording. 01:32:47.199 --> 01:32:50.199 This was about the. 01:32:50.199 --> 01:32:52.199 This was the, with the redacted contract. 01:32:52.199 --> 01:32:53.199 See the number. 01:32:53.199 --> 01:32:54.199 That would be high to see. 01:32:54.199 --> 01:32:59.199 Yeah. 01:32:59.199 --> 01:33:00.199 Yes. 01:33:00.199 --> 01:33:02.199 So did you just want to send some there? 01:33:02.199 --> 01:33:03.199 Yeah, just. 01:33:03.199 --> 01:33:05.199 Sentence in there for the reason. 01:33:05.199 --> 01:33:08.199 For the reason. 01:33:08.199 --> 01:33:09.199 That's the reason. 01:33:09.199 --> 01:33:10.199 That's the reason. 01:33:10.199 --> 01:33:11.199 That's the reason. 01:33:11.199 --> 01:33:12.199 Yes. Exactly. Exactly. 01:33:12.199 --> 01:33:13.199 Okay. 01:33:13.199 --> 01:33:14.199 Yeah. 01:33:14.199 --> 01:33:16.199 And that was stated on the record, but it. 01:33:16.199 --> 01:33:18.199 And we can put it in the discussion. 01:33:18.199 --> 01:33:19.199 Oh, exactly. Yeah. 01:33:19.199 --> 01:33:20.199 I mean, obviously. 01:33:20.199 --> 01:33:21.199 Okay. 01:33:21.199 --> 01:33:22.199 Yes. 01:33:22.199 --> 01:33:23.199 All right. 01:33:23.199 --> 01:33:25.199 Yes. Yeah. 01:33:25.199 --> 01:33:27.199 I voted, I voted against it because of all the, 01:33:27.199 --> 01:33:28.199 because of all the redactions. 01:33:28.199 --> 01:33:29.199 So yeah, just to. 01:33:29.199 --> 01:33:30.199 And I'm. 01:33:30.199 --> 01:33:31.199 Yeah. 01:33:31.199 --> 01:33:34.199 Okay. 01:33:34.199 --> 01:33:37.199 So with that correction on item C. 01:33:37.199 --> 01:33:42.199 Corrections or that addition to item C. 01:33:42.199 --> 01:33:45.689 If not, is there a motion then to approve the minutes with 01:33:45.689 --> 01:33:48.199 that correction. 01:33:48.199 --> 01:33:50.199 I move. 01:33:50.199 --> 01:33:51.199 Have a motion. 01:33:51.199 --> 01:33:53.199 And a second. 01:33:53.199 --> 01:33:54.199 Any discussion? 01:33:54.199 --> 01:33:55.199 All in favor say aye. 01:33:55.199 --> 01:33:56.199 Aye. 01:33:56.199 --> 01:33:57.199 Any opposed? 01:33:57.199 --> 01:33:58.199 Okay. 01:33:58.199 --> 01:34:00.199 Minutes are approved. 01:34:00.199 --> 01:34:03.970 Next for individual consideration, we have item B, which is 01:34:03.970 --> 01:34:06.199 to consider recommending adoption of an ordinance. 01:34:06.199 --> 01:34:09.199 The city council of the city of Denton. 01:34:09.199 --> 01:34:14.460 Providing for authorizing and approving the execution of by 01:34:14.460 --> 01:34:17.869 the mayor of a power purchase agreement between the city of 01:34:17.869 --> 01:34:21.199 Denton and blue bell solar to LLC. 01:34:21.199 --> 01:34:24.579 Proving and authorizing the acceptance and approval by the 01:34:24.579 --> 01:34:27.199 city manager or his respective designee. 01:34:27.199 --> 01:34:30.689 Of guarantees and letters of credit issued by blue bell 01:34:30.689 --> 01:34:34.199 solar to and next year energy capital holdings Inc. 01:34:34.199 --> 01:34:37.199 Further securing. 01:34:37.199 --> 01:34:43.199 The obligations of blue bell solar to to the city. 01:34:43.199 --> 01:34:46.199 So. 01:34:46.199 --> 01:34:49.199 I believe George. 01:34:49.199 --> 01:34:52.199 Is going to lead us to this. 01:34:52.199 --> 01:34:55.199 Good morning, George Morrill, general manager of DME. 01:34:55.199 --> 01:34:58.770 It's a pleasure to be before you this morning to talk about 01:34:58.770 --> 01:35:02.189 our recommendation for a new renewable power purchase 01:35:02.189 --> 01:35:03.199 agreement. 01:35:03.199 --> 01:35:07.199 The project's called the blue bell solar to project. 01:35:07.199 --> 01:35:09.199 And a little bit of history and background. 01:35:09.199 --> 01:35:12.699 The purchasing department here at the city, the city issued 01:35:12.699 --> 01:35:15.850 an RFP for solar and wind energy back on back in June of 01:35:15.850 --> 01:35:18.199 last year with bids due October 4. 01:35:18.199 --> 01:35:22.199 And we were blessed with a lot of proposals. 01:35:22.199 --> 01:35:26.090 You can see here in the presentation we had 41 separate 01:35:26.090 --> 01:35:28.199 entities submit proposals. 01:35:28.199 --> 01:35:32.060 89 different projects and when you looked at different 01:35:32.060 --> 01:35:35.890 timing and sizes and locations, we came up with 846 01:35:35.890 --> 01:35:38.199 separate little unique offers. 01:35:38.199 --> 01:35:43.199 And we start dates ranging from mid 19 through 2021. 01:35:43.199 --> 01:35:46.510 And so RFP was very clear what what we would look at was 01:35:46.510 --> 01:35:50.189 four components for the evaluation price, of course, 01:35:50.189 --> 01:35:53.449 location, which talks about how easy it is to get it back 01:35:53.449 --> 01:35:54.199 to Denton. 01:35:54.199 --> 01:35:57.409 Hourly production profile, which indicates how much energy 01:35:57.409 --> 01:36:00.250 we're actually going to get from that plant and the past 01:36:00.250 --> 01:36:01.199 performance. 01:36:01.199 --> 01:36:06.199 And so I was also fortunate to be part of a big group of 01:36:06.199 --> 01:36:10.199 with experts looking at this evaluation. 01:36:10.199 --> 01:36:14.069 And we even had some outside council assist us with a fresh 01:36:14.069 --> 01:36:15.199 pair of eyes. 01:36:15.199 --> 01:36:18.630 And the recommendation was the one I'm bringing forward to 01:36:18.630 --> 01:36:22.020 you today is the blue bell solar to project recommended by 01:36:22.020 --> 01:36:23.199 next era proposed by next era. 01:36:23.199 --> 01:36:27.199 Energy and a little bit of background about that project. 01:36:27.199 --> 01:36:31.460 It's located in Sterling County, about 200 miles west of 01:36:31.460 --> 01:36:37.010 the city, using solar photovoltaic technology with his with 01:36:37.010 --> 01:36:39.199 crystalline solar cells. 01:36:39.199 --> 01:36:42.979 The size is 100 megawatts. So pretty substantial project 01:36:42.979 --> 01:36:46.069 for us and a 15 year term in service date by the end of 01:36:46.069 --> 01:36:51.350 2020, which matches up well with city's policy to move 01:36:51.350 --> 01:36:52.199 toward 100 percent renewable energy. 01:36:52.199 --> 01:36:58.199 And that's a very competitive and fixed price for the term. 01:36:58.199 --> 01:37:02.460 And which is standard these days in the in the proposals, I 01:37:02.460 --> 01:37:06.199 think pretty much all our proposals were were that way. 01:37:06.199 --> 01:37:09.050 And that's that's good for the good for the utilities, good 01:37:09.050 --> 01:37:10.199 for our customers. 01:37:10.199 --> 01:37:13.199 So I did mention there's a note on the bottom of the slide. 01:37:13.199 --> 01:37:16.199 There's already a contract we have for blue bell solar one. 01:37:16.199 --> 01:37:18.890 And perhaps that was why we were able to get such an 01:37:18.890 --> 01:37:22.109 attractive offer is there's this would be layered on top of 01:37:22.109 --> 01:37:24.199 that and using the same facility. 01:37:24.199 --> 01:37:27.020 There's some economies of scale benefit for having the two 01:37:27.020 --> 01:37:28.199 projects together. 01:37:28.199 --> 01:37:32.199 And that one is scheduled to begin right now by November. 01:37:32.199 --> 01:37:34.199 This year is the current timetable. 01:37:34.199 --> 01:37:37.909 So we'll have our first 30 megawatts solar on the books 01:37:37.909 --> 01:37:39.199 later this year. 01:37:39.199 --> 01:37:43.470 So bringing forward that arrangement to you, there's a 01:37:43.470 --> 01:37:48.199 staff report and a what I call a lightly redacted contract. 01:37:48.199 --> 01:37:52.449 And why I want to compliment next era for working with us, 01:37:52.449 --> 01:37:56.119 you know, city's policy to be as open and transparent as 01:37:56.119 --> 01:37:57.199 possible. 01:37:57.199 --> 01:38:00.460 I asked them to, you know, let's work on this in that 01:38:00.460 --> 01:38:01.199 regard. 01:38:01.199 --> 01:38:03.199 And they were very helpful and supportive. 01:38:03.199 --> 01:38:10.050 So I did want to compliment them. So we're requesting the P 01:38:10.050 --> 01:38:13.010 .B. consider recommending adoption of this new renewable 01:38:13.010 --> 01:38:15.199 arrangement for 15 years of solar power. 01:38:15.199 --> 01:38:19.199 And I'm here to answer any questions. 01:38:19.199 --> 01:38:21.199 Questions. Yes. Yes. 01:38:21.199 --> 01:38:23.199 I have a couple questions. 01:38:23.199 --> 01:38:26.550 I wanted to ask if 100 percent of the power that will come 01:38:26.550 --> 01:38:29.199 out of this contract will be provided by city. 01:38:29.199 --> 01:38:33.510 And that there aren't any recs included or anything like 01:38:33.510 --> 01:38:34.199 that. 01:38:34.199 --> 01:38:36.199 No, you're totally correct. 01:38:36.199 --> 01:38:40.199 This will be one of the sun solar contracts. 01:38:40.199 --> 01:38:42.699 So when the sun is out and shining, we'll get solar energy 01:38:42.699 --> 01:38:44.199 when it's not in the evenings. 01:38:44.199 --> 01:38:46.909 Night times we'll get less or we won't get any depending on 01:38:46.909 --> 01:38:48.199 the solar insulation. 01:38:48.199 --> 01:38:52.090 So this one is not managed or in any way similar to other 01:38:52.090 --> 01:38:56.130 arrangements that other people have had in which we've had 01:38:56.130 --> 01:38:57.199 to do this. 01:38:57.199 --> 01:39:02.199 So that's great. 01:39:02.199 --> 01:39:04.199 I'd also like to ask. 01:39:04.199 --> 01:39:08.859 So we're we're we're purchasing this power from Bluebell 01:39:08.859 --> 01:39:12.199 who's setting up the solar facility. 01:39:12.199 --> 01:39:17.199 Have we evaluated like we did with the energy center? 01:39:17.199 --> 01:39:22.199 Have we evaluated building our own solar operation? 01:39:22.199 --> 01:39:26.199 I mean, yes and no. 01:39:26.199 --> 01:39:30.060 My experience over the years looking at these kinds of 01:39:30.060 --> 01:39:35.470 projects requires a tremendous amount of of expertise and 01:39:35.470 --> 01:39:40.319 specific to this type of development and program, you know, 01:39:40.319 --> 01:39:44.199 identifying a site, obtaining and managing that site, 01:39:44.199 --> 01:39:46.199 managing a project. 01:39:46.199 --> 01:39:47.899 You know, there's lots of different components that go in 01:39:47.899 --> 01:39:48.199 there. 01:39:48.199 --> 01:39:50.909 For us, it would be a relatively modest economy of scale, 01:39:50.909 --> 01:39:53.810 whereas a next era, for instance, they've got well, they're 01:39:53.810 --> 01:39:56.640 probably the country's largest wind power producer and they 01:39:56.640 --> 01:39:59.199 're moving higher up the chain in the solar side. 01:39:59.199 --> 01:40:02.199 They're, you know, turning their head toward solar. 01:40:02.199 --> 01:40:04.199 So they've got a lot of background economies. 01:40:04.199 --> 01:40:07.340 They can mobilize bigger, you know, workforces that have 01:40:07.340 --> 01:40:08.199 expertise. 01:40:08.199 --> 01:40:12.069 So it would be difficult, extremely difficult for us to do 01:40:12.069 --> 01:40:14.199 anything even close to this. 01:40:14.199 --> 01:40:18.470 We'll mention if we were to do say a smaller solar project 01:40:18.470 --> 01:40:21.689 locally, which has pros and cons, and there's some pros to 01:40:21.689 --> 01:40:22.199 that. 01:40:22.199 --> 01:40:25.350 You'd be looking probably just rule of thumb two to three 01:40:25.350 --> 01:40:28.500 times as expensive as is what we think you might be able to 01:40:28.500 --> 01:40:30.199 buy from the open market. 01:40:30.199 --> 01:40:31.199 Okay. 01:40:31.199 --> 01:40:32.199 On a utility scale. 01:40:32.199 --> 01:40:33.199 Sure. Thank you. 01:40:33.199 --> 01:40:37.199 Yes. 01:40:37.199 --> 01:40:41.199 Other questions? 01:40:41.199 --> 01:40:44.199 Sorry, sorry. 01:40:44.199 --> 01:40:51.250 I'll just say that I'm really pleased that the company 01:40:51.250 --> 01:40:55.920 agreed to essentially only redact the price and to make 01:40:55.920 --> 01:41:01.199 everything else, or just about everything else transparent. 01:41:01.199 --> 01:41:05.930 So, you know, we can show the ratepayers, we can tell them 01:41:05.930 --> 01:41:10.289 that this is really the best deal, and even if we didn't 01:41:10.289 --> 01:41:17.470 have 100% renewable goal, this is still really the cheapest 01:41:17.470 --> 01:41:22.199 option on the market, and we got a really good deal on it. 01:41:22.199 --> 01:41:25.199 And they can look at all the other terms of the contract. 01:41:25.199 --> 01:41:29.069 So anyway, I thank you for working with them on that, and I 01:41:29.069 --> 01:41:32.659 'm very pleased, and it makes me think very well of this 01:41:32.659 --> 01:41:35.199 company that we're working with. 01:41:35.199 --> 01:41:39.199 I think that's a good business partner. 01:41:39.199 --> 01:41:42.819 So I just want to mention that for the public, and also to 01:41:42.819 --> 01:41:45.199 thank staff for working on that. 01:41:45.199 --> 01:41:47.199 All right. Thank you. 01:41:47.199 --> 01:41:49.199 Okay. 01:41:49.199 --> 01:41:51.199 Anything else? Motion? 01:41:51.199 --> 01:41:54.199 I'd like to motion that we recommend this ordinance. 01:41:54.199 --> 01:41:56.199 Okay, we have a motion. 01:41:56.199 --> 01:41:58.199 Second, and a second. 01:41:58.199 --> 01:42:00.199 Any discussion. 01:42:00.199 --> 01:42:02.199 All in favor say aye. 01:42:02.199 --> 01:42:05.199 Aye. Any opposed. 01:42:05.199 --> 01:42:09.199 Very good. Thank you, George. Thank you very much. 01:42:09.199 --> 01:42:11.199 Okay. 01:42:11.199 --> 01:42:14.199 Next we have the ACM update. 01:42:14.199 --> 01:42:17.100 Thank you, Mr. Chairman, members of the board. In your 01:42:17.100 --> 01:42:19.729 packet, there are a couple of staff items here for your 01:42:19.729 --> 01:42:22.079 review or questions if you have one of those is the 01:42:22.079 --> 01:42:25.199 employee ethics policy that which was adopted by council. 01:42:25.199 --> 01:42:28.350 Middle of last month, Cassie Ogden here is present to 01:42:28.350 --> 01:42:31.699 answer any specific questions you may have. But in the 01:42:31.699 --> 01:42:34.470 packet you have a summary of the policy and the actual 01:42:34.470 --> 01:42:37.600 policy document itself that's been distributed to the city 01:42:37.600 --> 01:42:38.199 staff. 01:42:38.199 --> 01:42:41.989 The second item is a follow up on a water leak adjustment 01:42:41.989 --> 01:42:46.140 memo, and Tiffany Thompson to hear to answer any questions 01:42:46.140 --> 01:42:48.199 you may have about that item. 01:42:48.199 --> 01:42:50.739 We have questions I know we had a lot of discussion last 01:42:50.739 --> 01:42:51.199 time. 01:42:51.199 --> 01:42:55.060 Well, I'd like to say that I act in an ethical manner 01:42:55.060 --> 01:42:59.079 always, I wonder if any of the aspects of this policy 01:42:59.079 --> 01:43:01.199 impact the pubs behavior. 01:43:01.199 --> 01:43:04.699 The, the policy that council adopted last week will apply 01:43:04.699 --> 01:43:08.039 to the PB members, as well as I think all of our boards and 01:43:08.039 --> 01:43:12.869 commissions. So, staff is in the process of developing a 01:43:12.869 --> 01:43:17.470 training program with our outside council, and I would 01:43:17.470 --> 01:43:21.560 anticipate in probably by June, we'll be able to be in to 01:43:21.560 --> 01:43:25.460 provide training to all the various commissions that they 01:43:25.460 --> 01:43:27.199 're impacted by that new policy. 01:43:27.199 --> 01:43:30.430 So, this is strictly the employee ethics policy which is a 01:43:30.430 --> 01:43:33.539 little bit different from the councils but yeah we'll be 01:43:33.539 --> 01:43:37.010 back to you in a month or 45 to 60 days at the latest to 01:43:37.010 --> 01:43:38.199 provide training. 01:43:38.199 --> 01:43:40.199 Okay, thank you. 01:43:40.199 --> 01:43:42.199 Good. 01:43:42.199 --> 01:43:48.920 I just wanted to thank Tiffany and staff for coming up with 01:43:48.920 --> 01:43:55.510 the water adjustment policy and putting all that, that 01:43:55.510 --> 01:43:58.039 together. I'm coming up with that document, and putting all 01:43:58.039 --> 01:43:59.199 that together that that was really informative and helpful. 01:43:59.199 --> 01:44:03.619 I was wondering is that somewhere on the website for the 01:44:03.619 --> 01:44:08.510 for the, I mean, obviously, they can see it in the agenda, 01:44:08.510 --> 01:44:12.720 but I mean, you know if you know people go to our water 01:44:12.720 --> 01:44:17.699 department, and, and if not, is that would that be possible 01:44:17.699 --> 01:44:18.199 . 01:44:18.199 --> 01:44:23.479 I wonder what category, you know, but to put that if says 01:44:23.479 --> 01:44:28.430 that somebody would know that there's a recourse to if 01:44:28.430 --> 01:44:30.539 there's a leak. I will confirm that that it's on the 01:44:30.539 --> 01:44:31.119 website I want to say that it is but I like to go back and 01:44:31.119 --> 01:44:34.479 look where it's at because we've had some relocation of 01:44:34.479 --> 01:44:36.789 items and so I want to make sure that I know where it's 01:44:36.789 --> 01:44:39.199 been located but if it isn't, I'll make sure it's on there 01:44:39.199 --> 01:44:40.199 this week. 01:44:40.199 --> 01:44:55.369 Thank you. I know that in my experience I've actually had 01:44:55.369 --> 01:44:55.609 to use this before, and the customer service representative 01:44:55.609 --> 01:44:55.819 is the one who told me about it I mean instantly, they were 01:44:55.819 --> 01:44:56.199 like, well, you can do this and we can adjust this bill so. 01:44:56.199 --> 01:44:59.159 Yeah, it's usually initiated with the customer calling in, 01:44:59.159 --> 01:45:02.069 because they are aware that they've experienced this excess 01:45:02.069 --> 01:45:04.729 usage and then we go through what was it for because there 01:45:04.729 --> 01:45:07.329 was a little bit of education piece with that but again I 01:45:07.329 --> 01:45:10.279 will confirm that it's on our website that information, 01:45:10.279 --> 01:45:11.199 thank you for the feedback. 01:45:11.199 --> 01:45:13.199 Thanks. 01:45:13.199 --> 01:45:15.199 Thank you. 01:45:15.199 --> 01:45:18.569 And beyond that, there's really nothing further to report 01:45:18.569 --> 01:45:21.750 just as a reminder to the board that the next meeting will 01:45:21.750 --> 01:45:25.039 be on the 21st of May, because the following Monday is 01:45:25.039 --> 01:45:27.590 Memorial Day. So, just as a note of reference and a 01:45:27.590 --> 01:45:28.199 reminder. 01:45:28.199 --> 01:45:30.199 Thank you. 01:45:30.199 --> 01:45:34.199 Okay. 01:45:34.199 --> 01:45:38.199 All right, let's see. 01:45:38.199 --> 01:45:46.279 And we'll go ahead and do concluding items now, which 01:45:46.279 --> 01:45:49.140 basically is to respond to inquiries from the public 01:45:49.140 --> 01:45:52.090 utilities board or the public with specific factual 01:45:52.090 --> 01:45:55.359 information or rest station policy or accept a proposal to 01:45:55.359 --> 01:45:57.199 place the matter on the agenda for an upcoming 01:45:57.199 --> 01:45:59.199 meeting. 01:45:59.199 --> 01:46:03.199 We have anything to add to future agenda. 01:46:03.199 --> 01:46:09.199 Yes, I'd like to repeat a request that I had made. 01:46:09.199 --> 01:46:14.270 Pretty soon after I first got on the public utility board, 01:46:14.270 --> 01:46:19.430 which, you know, now that we have a new general manager for 01:46:19.430 --> 01:46:22.199 DME and new head of finance. 01:46:22.199 --> 01:46:27.840 I think it would be a good time to revisit this, this, this 01:46:27.840 --> 01:46:33.060 question and explore this possibility and that is the 01:46:33.060 --> 01:46:38.470 question of why DME rates aren't structured like water 01:46:38.470 --> 01:46:44.810 rates, whereby the for our water commercial users are 01:46:44.810 --> 01:46:47.199 charged more and residential 01:46:47.199 --> 01:46:52.180 users are charged less and obviously commercial users are 01:46:52.180 --> 01:46:57.010 the big users and any residential user whether you live in 01:46:57.010 --> 01:47:02.229 a mansion or an apartment is smaller user than, than the, 01:47:02.229 --> 01:47:05.199 than the commercial account. 01:47:05.199 --> 01:47:09.899 So, you know, that seems to be working really well with 01:47:09.899 --> 01:47:15.100 with water. Obviously this water and electricity on the one 01:47:15.100 --> 01:47:18.439 hand they're apples and oranges. But you know they're both 01:47:18.439 --> 01:47:19.029 the service provided by utility service provided by by the 01:47:19.029 --> 01:47:19.199 city. 01:47:19.199 --> 01:47:23.649 And it encourages conservation and keeps residential rates 01:47:23.649 --> 01:47:27.720 low at the same time and I was really interested to hear in 01:47:27.720 --> 01:47:31.710 our, you know, just discussion and update on on water 01:47:31.710 --> 01:47:36.199 budgeting that there haven't been commercial complaints 01:47:36.199 --> 01:47:42.199 about the higher, you know, rates, rates for water. 01:47:42.199 --> 01:47:45.369 That is to say you know commercial customers haven't been 01:47:45.369 --> 01:47:48.479 complaining and lobbying to get you know why don't we get 01:47:48.479 --> 01:47:51.199 the, the same rates that that residents do. 01:47:51.199 --> 01:47:55.199 We may have some now, they're watching. So, yeah. 01:47:55.199 --> 01:48:09.699 But, I mean, but, and I think they should know, you know, 01:48:09.699 --> 01:48:13.420 it's there. So anyway, that's something that I mean I think 01:48:13.420 --> 01:48:13.689 it would be helpful to at least explore that possibility 01:48:13.689 --> 01:48:13.960 now that we've got, you know, some, some new brains on 01:48:13.960 --> 01:48:17.199 board, and for us to hear what the pros and cons might be. 01:48:17.199 --> 01:48:21.590 But I just think it's always good to, you know, question 01:48:21.590 --> 01:48:25.890 the, this, this, this status quo on an issue like this 01:48:25.890 --> 01:48:29.829 especially if there's a possibility of of lowering 01:48:29.829 --> 01:48:32.199 residential rates even more. 01:48:32.199 --> 01:48:37.199 How many agenda items was that. 01:48:37.199 --> 01:48:41.619 I'm kidding. I just said, No, I know, I know going through 01:48:41.619 --> 01:48:45.909 the budget, you know, we'll look at it and I think probably 01:48:45.909 --> 01:48:49.760 , I don't know if in the budget or maybe it's a separate 01:48:49.760 --> 01:48:53.779 agenda item where we look at cost of cost of service, and 01:48:53.779 --> 01:48:58.199 what the rates are based on, it's cost of service and 01:48:58.199 --> 01:49:02.739 obviously, you know, water is, there's an incentive and 01:49:02.739 --> 01:49:06.199 water for conservative for conservation. 01:49:06.199 --> 01:49:17.189 And it's, you know, the cost of service for a higher volume 01:49:17.189 --> 01:49:19.199 is a lot more. 01:49:19.199 --> 01:49:24.619 And it's not necessarily so on on electricity. I mean, I'm 01:49:24.619 --> 01:49:29.859 just comparing apples oranges but I think that perhaps you 01:49:29.859 --> 01:49:34.710 know maybe we look at looking at cost of service on both 01:49:34.710 --> 01:49:36.199 utilities. 01:49:36.199 --> 01:49:50.199 But at least we'll have a discussion about it. We'll be 01:49:50.199 --> 01:49:50.199 ready. 01:49:50.199 --> 01:50:08.199 Okay, any, any other comments, agenda items. 01:50:08.199 --> 01:50:11.659 We will not be coming back into open session after that 01:50:11.659 --> 01:50:15.520 will be adjourning out of the closed session since there'll 01:50:15.520 --> 01:50:20.199 be no other action items.