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May 21st 2018 public utility board meeting to order. Our

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first part of the

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meeting is in work session. Our first item in the work

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session is to receive a

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report, hold a discussion, and give staff direction

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regarding the wastewater and

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drainage fiscal year 2018-19 operating and capital

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improvement budget.

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Mr. Chairman, members of the PB, my name is Tony Puente,

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director of finance. We're

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gonna tackle this in two phases. We're gonna go ahead and

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go through the

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wastewater budget which excludes the drainage component and

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then we'll come

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back to you and we'll go through that particular budget so

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it'll be a two-part

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presentation here for you.

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And as you can see there's a number of staff members

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present. If there's some

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questions that I can't answer they'll quickly get up here

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and answer them

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for me. So just quickly I want to walk through the volume

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forecast again very

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similar to what we did with the water volume forecast. We

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've kind of

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we've combined this together into this presentation. As you

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can see we've seen

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about a about a 2% 2.2% growth in our customers for

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wastewater,

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residential, commercial, wholesale. The total growth it's

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been about 2%. We did

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see a little bit of a spike there in 2016. You ever see the

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cursor up there?

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Yes. So in 2016 it was a little bit of a spike, 2.7%. This

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budget's kind of based

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on a 2.1% growth in customers going forward. A little bit

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about our treatment

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plan. I will, if you look, if you saw in your backup that

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is one of the major

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issues that's out there for us and we'll talk a little bit

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about that as far as

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the risk to this fund. That plan is currently out here in

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2028. We anticipate

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the capacity expansion to that. About 8 MGDs is the kind of

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the next phase of

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that of that plant or it's a new plant, excuse me. We've

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seen kind of a you know

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levelized actual flow by year. Kind of came down a little

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bit this past year in

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2017. But generally I think we're kind of on a good trend

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upwards with again

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we'll be keeping an eye on kind of where those volumes are

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going

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forward. Continue to evaluate the need for that treatment

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plant. There is a

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possibility that that plant could go out a little bit

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further than what we

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currently anticipate but we'll be evaluating as we go

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forward. Some of the

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assumptions that have gone into this budget and this

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forecast is that all

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rates are based on cost of service. Both options that we'll

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present to you

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today do maintain a 1.25 debt coverage ratio that's

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consistent with both our

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debt policy and also our bond covenants that we have.

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Annual revenue funded

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capital based on asset management program. Collection

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system replacement

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funding target is 100% revenue funded for treatment plant

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infrastructure is

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25% revenue funding 25% debt funding. Those have been long

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established policies

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for the city as the board is aware. Reserves, there's no

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changes to the

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reserves. 100 to 140 day range that's about 28% to 39% of

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budget expenses.

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I'll show you in a forecast how we try to maintain those in

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both options.

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Continue to use a multi-year financial planning to minimize

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those rate

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increases that just simply means that we only issue the

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debt when we need and

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when that capital is coming forward. Rate revenue forecast

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is based on a

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128 GPCD per day that's a gallons per customer per day that

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'll be the kind of

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target that we'll be looking at evaluating as we go forward

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as far as

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the need for an expansion or a new plant. And then the one

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thing that

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almost very similar to what we did over on the water side

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with customer

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service. What we've done here is we're recommending to

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break out the drainage

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from the wastewater to better target what those reserves

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are for just a

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wastewater operation. We do plan to create a sub fund

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within the city's

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financial system to better account for those drainage

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operations and the

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drainage fee as well and any other revenues that are

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associated with that

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operation. We'll talk a little bit about that when we get

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to that presentation.

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For a long time we've maintained in the in the wastewater

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fund one million

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dollar drainage reserve and well the recommendation is to

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simply move that to

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this sub fund of drainage and then again just dedicated to

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that drainage keep it

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out of the wastewater operation. Some cost containment

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strategies over the

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last several months we've been looking at the CIP program

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not just for this

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fund but all funds across the city we've been working

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closely with the

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departments to understand what their needs are shortfalls

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any excess balances

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that may be there and how we can better utilize those going

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forward. We also

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included a salary savings budget again this is about one

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and a half percent

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it's very small a percentage but we do have turnover in

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that that it does

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explain some of the actuals in prior years compared to the

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budgets and we'll

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talk a little bit more about that here a little bit and

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then we do have a reduced

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revenue funded capital about 1.5 million and to level out

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the the five-year

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contributions that's just simply to keep some of the swings

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and to better kind of

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match what our cash flows are in our capital projects. Some

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of the future

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risks and mitigation as I mentioned there is this Hickory

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Creek basin new

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plant that is out there in that 10-year window it's about

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an 80 million dollar

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plant that's forecasted if you give me a second. Currently

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we're looking at about

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eight million dollars in 2024 that's for design and

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potential some land

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acquisition as well with the remainder to be issued 70

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million in 2027 again

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we'll be evaluating the debt to revenue component of that

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and looking for

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opportunities again that's the current plan as we continue

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to look on an annual

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basis on the volumes that are going through our current

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plant we'll be

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determining what the exact timing of that facility will be.

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Contractor cost

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excuse me contractor cost for CIP again we continue to see

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increases in those

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costs and so that's something that we have to be cognizant

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about as we go

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forward. O&M costs we did go through last year and again

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this year pretty heavily

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on on that O&M cost evaluating what's there what's needed

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making reductions as

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appropriate. Additional regulatory requirements again that

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's always

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something that's out there both with the TCEQ EPA so there

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's some things that

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we're continually continuously monitoring as far as this

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operation is

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concerned. So the two options that we wanted to present to

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you option one as

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you saw in your backup is includes a five percent rate

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decrease that does

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draw down our reserves I'll show you a little bit of what

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the impact is of that

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option two very similar to what we did on the water side is

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a two percent rate

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decrease but what we've done is we've revenue funded more

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capital and and

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trying to reduce and the leverage if you will the the fund

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going forward from

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the amount of debt that is dedicated to it. So this is the

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financial forecast

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with the five percent decrease. I do want to point out that

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previously or last year

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the forecast did include a two percent two percent two

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percent for fiscal year

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2020-2021-2022 along with this five percent rate decrease

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we are also

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proposing to eliminate those rate increases in the future.

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The current

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projection for our for our working capital and operating

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reserves is about

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twelve point seven million that's well within a well above

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the maximum target

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if you see here the 108 target is nine million the twelve

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million that's the

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range of our fund balance throughout this forecast under

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this scenario we

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stay above the minimum we go slightly a little bit lower

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here in 2022 but then

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we bump back up in 2023 our debt coverage ratios you can

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see here stay

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well above the 1.25 percent debt coverage requirement that

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we have in our debt

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policy. The option two scenario for wastewater as I

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mentioned is a two

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percent rate decrease this this decrease again also removes

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any planned future

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rate increases that were there last year again if you look

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at the operating

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reserves 11.3 million as well within that range and also

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going forward out to

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2023 we're actually back up closer to the maximum of that

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particular range the

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the debt coverage ratio as well in this particular scenario

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stays above that

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1.25 target that we have in our debt policy. The changes

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that you can see will

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be here in our debt service I'll go back a little bit you

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'll see that in 2021

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it's a seven a little bit over 7 million 6.5 million in

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2021 and you can see kind

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of decrease here conversely to that we've increased the

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revenue debt funding

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for 2019 and also for 2020 that then mitigates those future

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debt debt

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issuances that have been backed out as a result of this

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forecast. Just going

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through the budget highlights this is the detail for you on

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the revenues these

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revenues are a reflection of option one. Staff's

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recommendation to the board

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today is option one is the five percent decrease as you can

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see here these are

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just the detailed three-year history of our revenues and

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what they've done. Same

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thing with on the expense side we again this matches our

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option one five percent

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decrease of projection for you a recommendation for you

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again three years

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worth of history of expenses and where they will be in 18-

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19 under that

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particular scenario. So the impact the impact for you today

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here is the customer

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residential customer with 6,000 gallons currently the rate

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of that is about the

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$35.55 per month if option two is is opted that's a two

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percent decrease that

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would decrease that to about $34.85 and then of course

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option one you know gets

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you further to the left here at $33.79 option one would be

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approximately a

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$21 a year decrease to our customers in this particular

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scenario on a 6,000

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gallon 50 gallon 50,000 gallon commercial customer that

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that that

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customer currently is paying about $284 per month under

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option two it would go

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to 278 and under option one is 269 dollars I apologize we

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didn't we didn't

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put that on there for you so if you need those numbers just

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let me know for a

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commercial wastewater customer 200,000 gallon that customer

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currently pays about

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1,056 per month option two would go to 1,036 and under

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option one the

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recommendation would be a thousand and three dollars that

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wraps up my portion

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of the of this presentation I'll be happy to answer any

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questions you have

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or we can go to the departmental presentation and we can

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wait to the end

272
00:13:16,679 --> 00:13:25,460
whatever your pleasure might be questions on wastewater so

273
00:13:25,460 --> 00:13:27,720
the just

274
00:13:27,720 --> 00:13:35,789
question I had was the reserve targets are based upon on

275
00:13:35,789 --> 00:13:37,320
wastewater taking the

276
00:13:37,320 --> 00:13:45,039
drainage expenses out is that correct that's correct that's

277
00:13:45,039 --> 00:13:45,039
correct

278
00:13:49,279 --> 00:13:54,039
I'm asking yes ma'am if you want to go back to the rate

279
00:13:54,039 --> 00:13:55,759
reduction slides again

280
00:13:55,759 --> 00:14:00,009
do you have any concerns that you're showing negative net

281
00:14:00,009 --> 00:14:02,440
income for roughly

282
00:14:02,440 --> 00:14:09,179
five years at all I think certainly that that is that is a

283
00:14:09,179 --> 00:14:09,759
concern that's out

284
00:14:09,759 --> 00:14:13,250
there as part of this the risk we feel comfortable that

285
00:14:13,250 --> 00:14:14,440
based on the current

286
00:14:14,440 --> 00:14:17,460
reserve balances that we have and the fact that we'll be

287
00:14:17,460 --> 00:14:18,399
coming back to an

288
00:14:18,399 --> 00:14:23,220
annual base basis to reevaluate that again I think I think

289
00:14:23,220 --> 00:14:24,399
the fund is is

290
00:14:24,399 --> 00:14:28,259
well positioned within the reserve targets and the debt the

291
00:14:28,259 --> 00:14:29,039
debt coverages

292
00:14:29,039 --> 00:14:32,539
that we have long established and that our bond rating

293
00:14:32,539 --> 00:14:34,120
agencies routinely look

294
00:14:34,120 --> 00:14:38,559
at and and so I again I think we're in a good position with

295
00:14:38,559 --> 00:14:39,399
this particular

296
00:14:39,399 --> 00:14:41,450
recommendation it's really occurring because we're going to

297
00:14:41,450 --> 00:14:41,840
start spending

298
00:14:41,840 --> 00:14:44,200
down some of those reserves that yes a little bit too high

299
00:14:44,200 --> 00:14:47,320
okay thank you

300
00:14:54,399 --> 00:15:03,559
good evening mr. chair and members of the public utility

301
00:15:03,559 --> 00:15:04,320
board I'm here to

302
00:15:04,320 --> 00:15:07,830
give the departmental presentation for wastewater my name

303
00:15:07,830 --> 00:15:08,600
is Kenny banks and

304
00:15:08,600 --> 00:15:12,700
I'm the general manager of utilities want to go over a few

305
00:15:12,700 --> 00:15:14,360
accomplishments for

306
00:15:14,360 --> 00:15:17,120
for the wastewater department and I also have the

307
00:15:17,120 --> 00:15:18,639
environmental services

308
00:15:18,639 --> 00:15:22,029
department as a part of this presentation too so it's a lot

309
00:15:22,029 --> 00:15:22,399
of slides

310
00:15:22,399 --> 00:15:27,090
I'll try to paraphrase as much as I can we have completed

311
00:15:27,090 --> 00:15:28,720
the design of the

312
00:15:28,720 --> 00:15:32,110
Hickory Creek lift station replacement project and we plan

313
00:15:32,110 --> 00:15:33,080
on bidding this

314
00:15:33,080 --> 00:15:39,919
project in in 2018 the for actual construction we've

315
00:15:39,919 --> 00:15:41,159
completed the pecan

316
00:15:41,159 --> 00:15:44,759
Creek interceptor phase 4 project awarded a contract for

317
00:15:44,759 --> 00:15:45,840
the Cooper Creek

318
00:15:45,840 --> 00:15:48,210
interceptor phase 1 and phase 2 you'll see some of these

319
00:15:48,210 --> 00:15:49,480
occurring in the CIP

320
00:15:49,480 --> 00:15:52,480
update a little bit later in the presentation we did

321
00:15:52,480 --> 00:15:53,559
complete the update

322
00:15:53,559 --> 00:15:57,450
of our wastewater master plan model and then we are

323
00:15:57,450 --> 00:15:59,639
currently working through

324
00:15:59,639 --> 00:16:02,840
we've completed the acquisition of the consultant necessary

325
00:16:02,840 --> 00:16:03,759
for the study for

326
00:16:03,759 --> 00:16:06,240
the impact fees and we're currently working through those

327
00:16:06,240 --> 00:16:07,960
impact fees now we

328
00:16:07,960 --> 00:16:10,669
will hope to bring some of that information back to you in

329
00:16:10,669 --> 00:16:11,159
the late

330
00:16:11,159 --> 00:16:15,440
summer to early fall for the impact fee updates and then we

331
00:16:15,440 --> 00:16:16,679
have maintained our

332
00:16:16,679 --> 00:16:19,700
in-house construction and preventative maintenance cost to

333
00:16:19,700 --> 00:16:20,919
be substantially

334
00:16:20,919 --> 00:16:24,309
lower than our estimates of what it would cost us to

335
00:16:24,309 --> 00:16:26,240
contract those jobs out

336
00:16:26,240 --> 00:16:30,009
our goals for 1819 is to begin construction of the Hickory

337
00:16:30,009 --> 00:16:30,639
Creek and

338
00:16:30,639 --> 00:16:33,639
West peak flow detention facility projects these are both

339
00:16:33,639 --> 00:16:34,519
projects

340
00:16:34,519 --> 00:16:37,080
designed to help us shape off the peak flows of the

341
00:16:37,080 --> 00:16:38,480
wastewater to allow us to

342
00:16:38,480 --> 00:16:42,529
have a little bit more capacity in the system and and

343
00:16:42,529 --> 00:16:45,279
hopefully use that to push

344
00:16:45,279 --> 00:16:48,059
out some of those planned additional plant capacities that

345
00:16:48,059 --> 00:16:49,000
we talked about a

346
00:16:49,000 --> 00:16:52,409
little bit earlier begin construction of the Hickory Creek

347
00:16:52,409 --> 00:16:53,120
pump station

348
00:16:53,120 --> 00:16:56,889
replacement process project this is the old Alton station

349
00:16:56,889 --> 00:16:58,159
that we have out there

350
00:16:58,159 --> 00:17:00,769
the one that you may recall that we had some damage from a

351
00:17:00,769 --> 00:17:01,720
piece of concrete

352
00:17:01,720 --> 00:17:05,609
coming through it several months ago so we want to get that

353
00:17:05,609 --> 00:17:07,720
rehabilitated meeting

354
00:17:07,720 --> 00:17:10,740
and complete of course all of our EPA administrative order

355
00:17:10,740 --> 00:17:11,559
requirements

356
00:17:11,559 --> 00:17:15,180
continue to have our in-house construction be cost-

357
00:17:15,180 --> 00:17:16,240
effective and

358
00:17:16,240 --> 00:17:19,420
exercise our preventative maintenance costs so that we keep

359
00:17:19,420 --> 00:17:20,480
our overall system

360
00:17:20,480 --> 00:17:22,910
wide expenses down and then complete design and

361
00:17:22,910 --> 00:17:24,279
construction of a sludge

362
00:17:24,279 --> 00:17:28,319
handling project at Pecan Creek water reclamation plant

363
00:17:28,319 --> 00:17:29,359
this will be a big

364
00:17:29,359 --> 00:17:33,140
project for us we are hoping to be able to use this project

365
00:17:33,140 --> 00:17:33,799
to replace the

366
00:17:33,799 --> 00:17:36,359
existing gravity thickeners out there which will really

367
00:17:36,359 --> 00:17:37,319
help us on our solids

368
00:17:37,319 --> 00:17:40,319
handling and help our anaerobic digester be a lot more

369
00:17:40,319 --> 00:17:41,640
efficient than it is we've

370
00:17:41,640 --> 00:17:45,769
been having some challenges lately with the gravity thicken

371
00:17:45,769 --> 00:17:46,960
ers due to some of

372
00:17:46,960 --> 00:17:49,349
the changes that we've made to accommodate our lower

373
00:17:49,349 --> 00:17:50,279
phosphorus target

374
00:17:50,279 --> 00:17:53,130
and the resulting solids that have come from the change of

375
00:17:53,130 --> 00:17:54,960
that process so

376
00:17:54,960 --> 00:17:59,400
overall budget emphasis is to deliver cost-effective

377
00:17:59,400 --> 00:18:01,279
solutions that lower our

378
00:18:01,279 --> 00:18:04,920
asset lifecycle cost while continuing to reduce our impact

379
00:18:04,920 --> 00:18:05,839
on the environment

380
00:18:05,839 --> 00:18:08,960
preventing the overflows making sure that we're replacing

381
00:18:08,960 --> 00:18:09,880
these systems at

382
00:18:09,880 --> 00:18:12,710
the right time based on an actual assessment of the asset

383
00:18:12,710 --> 00:18:13,759
not just based on

384
00:18:13,759 --> 00:18:18,599
on an expected life we want to leverage technology and our

385
00:18:18,599 --> 00:18:19,759
work processes to

386
00:18:19,759 --> 00:18:23,930
enable our employees to be proactive and really service-

387
00:18:23,930 --> 00:18:25,359
oriented and by by

388
00:18:25,359 --> 00:18:29,119
service-oriented this I really see that as a means of being

389
00:18:29,119 --> 00:18:31,119
able to minimize the

390
00:18:31,119 --> 00:18:33,609
problems that we have in our system by using our asset

391
00:18:33,609 --> 00:18:34,759
management so if we can

392
00:18:34,759 --> 00:18:38,259
reduce our mainline service calls our sewer chokes our san

393
00:18:38,259 --> 00:18:39,039
itary sewer

394
00:18:39,039 --> 00:18:42,440
overflows that's a means of using that asset management

395
00:18:42,440 --> 00:18:44,160
program to increase our

396
00:18:44,160 --> 00:18:50,119
service to the community in terms of process improvements

397
00:18:50,119 --> 00:18:51,039
our asset

398
00:18:51,039 --> 00:18:54,369
management plan continues to be refined and updated and

399
00:18:54,369 --> 00:18:55,680
continues to be a very

400
00:18:55,680 --> 00:18:59,859
effective tool for us to reduce our O&M and combine that

401
00:18:59,859 --> 00:19:01,319
with our in-house

402
00:19:01,319 --> 00:19:07,259
construction and system maintenance we do want to install

403
00:19:07,259 --> 00:19:08,519
as I said the

404
00:19:08,519 --> 00:19:11,700
secondary sludge dewatering equipment out there for the

405
00:19:11,700 --> 00:19:12,960
solids handling at the

406
00:19:12,960 --> 00:19:16,079
wastewater treatment plant to help us out both with the

407
00:19:16,079 --> 00:19:17,200
solids and with the

408
00:19:17,200 --> 00:19:21,349
anaerobic digester so a couple of things about our position

409
00:19:21,349 --> 00:19:23,279
summary you'll notice

410
00:19:23,279 --> 00:19:32,329
a change in the 17 18 budget from 87.25 to the proposed 89.

411
00:19:32,329 --> 00:19:34,559
5 and then in the 18

412
00:19:34,559 --> 00:19:39,509
19 budget we're actually not adding positions there we're

413
00:19:39,509 --> 00:19:40,160
simply moving

414
00:19:40,160 --> 00:19:43,240
positions from our field service technical group that were

415
00:19:43,240 --> 00:19:43,759
housed in

416
00:19:43,759 --> 00:19:48,029
water over into wastewater to have that be a complete

417
00:19:48,029 --> 00:19:49,519
wastewater crew

418
00:19:49,519 --> 00:19:52,970
essentially the the transfer from water to cover the cost

419
00:19:52,970 --> 00:19:54,200
of those positions

420
00:19:54,200 --> 00:19:59,210
will make this a budget neutral decision we did add a point

421
00:19:59,210 --> 00:20:02,079
to five FTE you'll

422
00:20:02,079 --> 00:20:05,079
notice that that difference there that was to take a three-

423
00:20:05,079 --> 00:20:05,759
quarter time

424
00:20:05,759 --> 00:20:11,430
position that we had to a full-time position so five-year

425
00:20:11,430 --> 00:20:12,880
plan again a lot of

426
00:20:12,880 --> 00:20:17,440
details here I wanted to again point out the idea of the

427
00:20:17,440 --> 00:20:19,319
group assignments that

428
00:20:19,319 --> 00:20:23,440
you'll see here basically that that will let you go through

429
00:20:23,440 --> 00:20:25,200
the full budget that

430
00:20:25,200 --> 00:20:27,609
you've been given to understand where each one of these

431
00:20:27,609 --> 00:20:29,160
individual assignment

432
00:20:29,160 --> 00:20:34,000
categories are being costed out in the CIP plan basically

433
00:20:34,000 --> 00:20:35,559
this gives our overall

434
00:20:35,559 --> 00:20:43,440
CIP plan as well as our revenue sources and the major

435
00:20:43,440 --> 00:20:44,599
projects that have

436
00:20:44,599 --> 00:20:47,150
outlined here are basically the Hickory Creek detention

437
00:20:47,150 --> 00:20:48,000
facility and lift

438
00:20:48,000 --> 00:20:51,190
station as we've already talked about we talked about the

439
00:20:51,190 --> 00:20:52,400
solids handling the

440
00:20:52,400 --> 00:20:57,039
West wet weather peak flow we've got a large number of

441
00:20:57,039 --> 00:20:58,519
interceptor projects

442
00:20:58,519 --> 00:21:01,950
that are that are coming up basically all four phases of

443
00:21:01,950 --> 00:21:02,799
the Hickory Creek

444
00:21:02,799 --> 00:21:06,869
interceptor are planned within this five-year CIP so this

445
00:21:06,869 --> 00:21:08,599
will basically

446
00:21:08,599 --> 00:21:15,039
start out at the at 377 and basically take that Hickory

447
00:21:15,039 --> 00:21:16,279
Creek interceptor line

448
00:21:16,279 --> 00:21:21,049
in a variety of different pipe sizes all the way to the 380

449
00:21:21,049 --> 00:21:22,960
crumb interceptor so

450
00:21:22,960 --> 00:21:29,190
quite a large series of changes basically just give you a

451
00:21:29,190 --> 00:21:30,279
sense of it

452
00:21:30,279 --> 00:21:35,980
interceptor one is a 1400 foot line replacement intercept

453
00:21:35,980 --> 00:21:37,720
interceptor two is

454
00:21:37,720 --> 00:21:43,950
eleven thousand two hundred feet interceptor three is

455
00:21:43,950 --> 00:21:50,450
eighty seven hundred and then interceptor four is ninety

456
00:21:50,450 --> 00:21:50,470
one hundred so quite a large number of big projects coming

457
00:21:50,470 --> 00:21:54,190
coming up provided you the CIP map similar to what we did

458
00:21:54,190 --> 00:21:58,049
with water this is color-coded by each of the individual C

459
00:21:58,049 --> 00:22:02,400
IP years so you can see exactly where that project has been

460
00:22:02,400 --> 00:22:05,299
planned where it's located in the city of what's the IP

461
00:22:05,299 --> 00:22:07,559
year it's it's assigned to

462
00:22:07,559 --> 00:22:12,660
so that's short and sweet on the wastewater presentation I

463
00:22:12,660 --> 00:22:13,680
'd be glad to

464
00:22:13,680 --> 00:22:16,960
answer any questions anyone has

465
00:22:18,559 --> 00:22:25,299
yes ma'am yes under the the wastewater five-year capital

466
00:22:25,299 --> 00:22:29,279
plan slide this one the

467
00:22:29,279 --> 00:22:35,559
one it's before the ad right before that the category

468
00:22:35,559 --> 00:22:36,799
number 24 the

469
00:22:36,799 --> 00:22:39,329
miscellaneous category I was wondering if you could just

470
00:22:39,329 --> 00:22:40,359
say a little something

471
00:22:40,359 --> 00:22:44,140
to us in the public about what what what kinds of

472
00:22:44,140 --> 00:22:46,400
assignments would fall under

473
00:22:46,400 --> 00:22:50,210
that miscellaneous category yes do you have a sense of what

474
00:22:50,210 --> 00:22:51,920
the major ones would

475
00:22:51,920 --> 00:22:58,369
be under miscellaneous the short answer is it's everything

476
00:22:58,369 --> 00:22:59,160
that's not in any of

477
00:22:59,160 --> 00:23:08,890
the other the first beginning there are two projects that

478
00:23:08,890 --> 00:23:12,000
are really tied to

479
00:23:12,000 --> 00:23:18,250
this Street Department projects so they were not assigned

480
00:23:18,250 --> 00:23:20,119
as a capacity upgrade

481
00:23:20,119 --> 00:23:25,279
so they put them in a miscellaneous project there and

482
00:23:25,279 --> 00:23:27,759
beyond that you know we

483
00:23:27,759 --> 00:23:30,759
have there are times when we have the field service has to

484
00:23:30,759 --> 00:23:32,880
go out and do some

485
00:23:32,880 --> 00:23:37,460
some work on a sewer line that is not part of the CIP so we

486
00:23:37,460 --> 00:23:38,920
put some money out

487
00:23:38,920 --> 00:23:48,289
there for that anything you'd like to share anything worth

488
00:23:48,289 --> 00:23:49,440
sharing about the

489
00:23:49,440 --> 00:23:52,559
the variance you know from year to year anything

490
00:23:52,559 --> 00:23:54,039
interesting about the reasons

491
00:23:54,039 --> 00:24:00,319
for the on the collection system the upgrade projects are

492
00:24:00,319 --> 00:24:01,000
the ones you know

493
00:24:01,000 --> 00:24:04,000
which are the large interceptor sewer projects that can you

494
00:24:04,000 --> 00:24:05,079
talk about oh sorry

495
00:24:05,079 --> 00:24:09,309
sorry I'm sorry I mean under the miscellaneous category

496
00:24:09,309 --> 00:24:10,240
from year to year

497
00:24:10,240 --> 00:24:16,279
so for 2019 the projected for under 30,000 and then 2020

498
00:24:16,279 --> 00:24:21,279
260 okay right here

499
00:24:21,279 --> 00:24:25,039
yeah all right yeah in this year right here you know that

500
00:24:25,039 --> 00:24:25,680
is where we have the

501
00:24:25,680 --> 00:24:30,569
street projects there that are tied to that beyond that it

502
00:24:30,569 --> 00:24:32,200
's pretty consistent

503
00:24:32,200 --> 00:24:36,670
as you can see right about $260,000 so it's a certain

504
00:24:36,670 --> 00:24:38,200
amount of money we put in

505
00:24:38,200 --> 00:24:41,799
there so if you have to do something that is not funded

506
00:24:41,799 --> 00:24:43,400
through the collection

507
00:24:43,400 --> 00:24:47,809
system upgrade or field service replace we can you know

508
00:24:47,809 --> 00:24:48,079
manage to do those projects

509
00:24:48,079 --> 00:24:53,440
thank you so you're so you're saying PS as you get a little

510
00:24:53,440 --> 00:24:54,359
further out it gets

511
00:24:54,359 --> 00:24:59,339
harder to predict I mean these we know we're gonna have

512
00:24:59,339 --> 00:25:00,559
street repairs all

513
00:25:00,559 --> 00:25:07,369
wrong but there may or may not be wastewater expenditures

514
00:25:07,369 --> 00:25:07,920
associated with

515
00:25:07,920 --> 00:25:11,599
those until we your time about the miscellaneous yeah and

516
00:25:11,599 --> 00:25:12,240
the miscellaneous

517
00:25:12,240 --> 00:25:14,990
yes in generally you know after first two or three years it

518
00:25:14,990 --> 00:25:15,880
's kind of hard to

519
00:25:15,880 --> 00:25:20,339
predict yeah what we have to do even that happens even with

520
00:25:20,339 --> 00:25:21,079
the major

521
00:25:21,079 --> 00:25:24,650
projects because we don't know capacity wise are we going

522
00:25:24,650 --> 00:25:26,680
to hit that where they

523
00:25:26,680 --> 00:25:31,609
we will need that project or not so it becomes a little

524
00:25:31,609 --> 00:25:40,759
more difficult okay any

525
00:25:40,759 --> 00:25:51,329
other questions I guess the the one question I had was kind

526
00:25:51,329 --> 00:25:51,920
of an overall

527
00:25:51,920 --> 00:25:57,519
goes back to Susan's comment about you know budgeting a

528
00:25:57,519 --> 00:26:03,079
loss and I'm all in

529
00:26:03,079 --> 00:26:07,130
favor of rate decreases whenever we can do it I just want

530
00:26:07,130 --> 00:26:08,240
to want to make sure

531
00:26:08,240 --> 00:26:12,680
that because you know we had a two point a two percent

532
00:26:12,680 --> 00:26:15,160
increase last year right

533
00:26:15,160 --> 00:26:20,690
and so or this year yes and so we're going that's a seven

534
00:26:20,690 --> 00:26:21,640
percent swing I

535
00:26:21,640 --> 00:26:25,029
guess if you will if we do a five percent this year and

536
00:26:25,029 --> 00:26:25,640
just to clarify

537
00:26:25,640 --> 00:26:29,420
your last last year we had a we had a zero rate increase we

538
00:26:29,420 --> 00:26:30,579
had projected a

539
00:26:30,579 --> 00:26:35,019
two percent okay that's okay yes okay and that's sort of

540
00:26:35,019 --> 00:26:35,519
the point of these

541
00:26:35,519 --> 00:26:38,339
budgets as we're looking out four and five years is you go

542
00:26:38,339 --> 00:26:39,240
back on an annual

543
00:26:39,240 --> 00:26:42,960
basis and you'll read you'll refine those estimates moving

544
00:26:42,960 --> 00:26:45,160
forward the

545
00:26:45,160 --> 00:26:47,950
strategy with wastewater is identical to that with water is

546
00:26:47,950 --> 00:26:48,799
we know we've got

547
00:26:48,799 --> 00:26:52,190
some significant capital projects coming down the road we

548
00:26:52,190 --> 00:26:53,440
're trying to manage the

549
00:26:53,440 --> 00:26:57,180
debt service line item is as much as we can so you'll

550
00:26:57,180 --> 00:26:58,440
notice in the five-year

551
00:26:58,440 --> 00:27:01,440
rate decrease the debt service falls off down to about five

552
00:27:01,440 --> 00:27:02,279
point three million

553
00:27:02,279 --> 00:27:06,240
dollars going as high as seven point three million in 2022

554
00:27:06,240 --> 00:27:07,000
that's really the

555
00:27:07,000 --> 00:27:09,759
number after we take a look at our policies the debt

556
00:27:09,759 --> 00:27:11,119
service coverage and

557
00:27:11,119 --> 00:27:14,299
and the and the reserves that we're most concerned about in

558
00:27:14,299 --> 00:27:15,440
both of those funds

559
00:27:15,440 --> 00:27:19,039
we know that in the next five years or so after out there

560
00:27:19,039 --> 00:27:20,440
that we've got major

561
00:27:20,440 --> 00:27:23,619
projects coming forward and we're trying to create as much

562
00:27:23,619 --> 00:27:25,680
capacity as we can so

563
00:27:25,680 --> 00:27:29,839
as to not have a situation in the mid 2020s where we get

564
00:27:29,839 --> 00:27:30,839
into a rate shock

565
00:27:30,839 --> 00:27:34,490
scenario because we're talking both those projects are

566
00:27:34,490 --> 00:27:34,880
going to be

567
00:27:34,880 --> 00:27:38,000
significant certain tens of millions of dollars so that's

568
00:27:38,000 --> 00:27:39,319
really what's driving

569
00:27:39,319 --> 00:27:43,259
us we'll go back in next year we're trying to we're trying

570
00:27:43,259 --> 00:27:43,880
to revenue fund

571
00:27:43,880 --> 00:27:47,519
as much capital as possible stay away from certificates of

572
00:27:47,519 --> 00:27:51,650
obligation and and then when we actually need those dollars

573
00:27:51,650 --> 00:27:52,440
to create the

574
00:27:52,440 --> 00:27:55,180
capacity in both water and wastewater treatment plants it's

575
00:27:55,180 --> 00:27:55,680
there and

576
00:27:55,680 --> 00:27:58,000
hopefully manage the rate increase that's going to be

577
00:27:58,000 --> 00:27:58,720
necessary at that

578
00:27:58,720 --> 00:28:03,160
time so the negative numbers don't bother us too much the

579
00:28:03,160 --> 00:28:04,200
the dollars are

580
00:28:04,200 --> 00:28:08,170
there to draw it down we're still having a fairly robust C

581
00:28:08,170 --> 00:28:09,640
IP and planning for

582
00:28:09,640 --> 00:28:12,220
for our next treatment plan expansion so we feel like we're

583
00:28:12,220 --> 00:28:13,160
in good this this

584
00:28:13,160 --> 00:28:17,599
fund in particular we're in really good shape yeah I know I

585
00:28:17,599 --> 00:28:18,920
guess the not too

586
00:28:18,920 --> 00:28:24,289
distant future we had we really had to step up the capital

587
00:28:24,289 --> 00:28:25,799
improvement program

588
00:28:25,799 --> 00:28:31,519
and wastewater because of the compliance with EPA

589
00:28:31,519 --> 00:28:34,480
requirements and right TCEQ and

590
00:28:34,480 --> 00:28:38,269
all that and so I just want to make sure we're not putting

591
00:28:38,269 --> 00:28:39,599
any of that at risk

592
00:28:39,599 --> 00:28:43,890
right well it is a self-correcting process every year we

593
00:28:43,890 --> 00:28:44,720
are looking at

594
00:28:44,720 --> 00:28:48,109
biggest miniatures on the on the water side we're looking

595
00:28:48,109 --> 00:28:49,200
at it's going to be

596
00:28:49,200 --> 00:28:52,839
close to with design and construction close to a hundred

597
00:28:52,839 --> 00:28:54,559
million dollars and

598
00:28:54,559 --> 00:28:57,559
on the wastewater side we're looking at about 78 million

599
00:28:57,559 --> 00:28:58,200
for the plant

600
00:28:58,200 --> 00:29:01,019
expansion that's that's planned I do think there's some

601
00:29:01,019 --> 00:29:02,160
capacity to push that

602
00:29:02,160 --> 00:29:05,660
out further on the wastewater side depending on how things

603
00:29:05,660 --> 00:29:06,519
go with solid

604
00:29:06,519 --> 00:29:10,750
solids handling and some of the things that we were doing

605
00:29:10,750 --> 00:29:11,799
with the PS of

606
00:29:11,799 --> 00:29:15,480
particulars do with his group and the in system storage

607
00:29:15,480 --> 00:29:17,000
capacity to be able to

608
00:29:17,000 --> 00:29:22,450
make the existing concrete plant last longer so it but

609
00:29:22,450 --> 00:29:24,799
those are two projects

610
00:29:24,799 --> 00:29:26,920
that are out there looming and we definitely have our eyes

611
00:29:26,920 --> 00:29:27,319
on them as

612
00:29:27,319 --> 00:29:30,720
we're going forward is that part of the collection

613
00:29:30,720 --> 00:29:32,079
collection capital

614
00:29:32,079 --> 00:29:34,640
improvements is it with that is a collection system or is

615
00:29:34,640 --> 00:29:35,980
that yes yes I

616
00:29:35,980 --> 00:29:41,640
mean it did the the the plant design and the and the actual

617
00:29:41,640 --> 00:29:42,960
construction of the

618
00:29:42,960 --> 00:29:46,369
plan is outside of this five-year IP but yes it would be in

619
00:29:46,369 --> 00:29:47,359
that in that category

620
00:29:47,359 --> 00:30:00,039
okay all right any other questions no

621
00:30:02,839 --> 00:30:06,559
okay talk real quick about the environmental services and

622
00:30:06,559 --> 00:30:07,359
sustainability

623
00:30:07,359 --> 00:30:11,000
department you have a question I was just gonna say I mean

624
00:30:11,000 --> 00:30:12,000
I support the five

625
00:30:12,000 --> 00:30:17,660
percent rate decrease it seems like a great idea for the

626
00:30:17,660 --> 00:30:20,960
ratepayers and and

627
00:30:20,960 --> 00:30:24,039
very sensibly planned for I'm not worried you know looking

628
00:30:24,039 --> 00:30:24,720
at how we're

629
00:30:24,720 --> 00:30:28,069
doing going forward so it seems like a great plan and thank

630
00:30:28,069 --> 00:30:35,839
you um I've been

631
00:30:35,839 --> 00:30:38,670
before the board and talked about environmental services

632
00:30:38,670 --> 00:30:38,880
and

633
00:30:38,880 --> 00:30:41,710
sustainability for the last several budget cycles it's a

634
00:30:41,710 --> 00:30:42,960
little bit of a of

635
00:30:42,960 --> 00:30:46,079
an odd division because it's kind of spread among the

636
00:30:46,079 --> 00:30:47,160
organization and so we

637
00:30:47,160 --> 00:30:51,240
thought we'd kind of just go through it in a fairly high

638
00:30:51,240 --> 00:30:53,200
pass level and kind of

639
00:30:53,200 --> 00:30:56,200
show you the major elements of it and then you can see the

640
00:30:56,200 --> 00:30:57,440
individual FTEs by

641
00:30:57,440 --> 00:31:01,049
functional area so now through some reorganizations we have

642
00:31:01,049 --> 00:31:01,680
landfill

643
00:31:01,680 --> 00:31:04,920
regulatory compliance as a as a component of environmental

644
00:31:04,920 --> 00:31:05,480
services

645
00:31:05,480 --> 00:31:08,069
generally speaking we that's the same approach that we've

646
00:31:08,069 --> 00:31:08,880
used on the water

647
00:31:08,880 --> 00:31:11,259
and wastewater side where environmental services handles

648
00:31:11,259 --> 00:31:13,039
the regulatory arm of

649
00:31:13,039 --> 00:31:16,960
the of the organization we've got the water laboratory

650
00:31:16,960 --> 00:31:18,119
wastewater laboratory

651
00:31:18,119 --> 00:31:20,670
industrial pretreatment and watershed protection that are

652
00:31:20,670 --> 00:31:22,220
all under either the

653
00:31:22,220 --> 00:31:25,670
water fund wastewater fund or the drainage fund watershed

654
00:31:25,670 --> 00:31:26,319
protection is

655
00:31:26,319 --> 00:31:29,589
also the group that does the stormwater compliance for the

656
00:31:29,589 --> 00:31:31,039
city and then we've

657
00:31:31,039 --> 00:31:36,019
got the sustainability department as well a couple of foot

658
00:31:36,019 --> 00:31:39,680
notes there the the

659
00:31:39,680 --> 00:31:43,130
FTEs by functional area are going to be a part as I've

660
00:31:43,130 --> 00:31:44,480
stated of the water

661
00:31:44,480 --> 00:31:48,920
wastewater solid waste fund FTE counts but there's a couple

662
00:31:48,920 --> 00:31:50,119
of other issues

663
00:31:50,119 --> 00:31:53,599
that I'd like to point out the reduction of the FTEs on the

664
00:31:53,599 --> 00:31:54,920
landfill regulatory

665
00:31:54,920 --> 00:31:58,359
compliance was due to the fact that we had basically

666
00:31:58,359 --> 00:32:00,000
cancelled the landfill

667
00:32:00,000 --> 00:32:02,519
mining operation and so there were two FTEs that were no

668
00:32:02,519 --> 00:32:03,559
longer needed there

669
00:32:03,559 --> 00:32:08,190
the sustainability increase of three FTEs was just simply a

670
00:32:08,190 --> 00:32:09,359
component of an

671
00:32:09,359 --> 00:32:12,549
environmental or an organization into the environmental

672
00:32:12,549 --> 00:32:14,039
services department so

673
00:32:14,039 --> 00:32:18,119
those positions do not represent new positions to the FTE

674
00:32:18,119 --> 00:32:19,400
new positions to

675
00:32:19,400 --> 00:32:22,759
the city rather they represent new positions just to

676
00:32:22,759 --> 00:32:25,920
environmental services

677
00:32:25,920 --> 00:32:29,630
basically this is the the arrangement of the reporting

678
00:32:29,630 --> 00:32:31,359
structure so there's two

679
00:32:31,359 --> 00:32:34,599
major arms one under the assistant director of

680
00:32:34,599 --> 00:32:35,920
environmental services Deborah

681
00:32:35,920 --> 00:32:39,470
Vieira that has the majority of the regulatory compliance

682
00:32:39,470 --> 00:32:41,440
the laboratory the

683
00:32:41,440 --> 00:32:44,599
pretreatment and watershed groups and then the

684
00:32:44,599 --> 00:32:46,640
sustainability side is under

685
00:32:46,640 --> 00:32:49,789
the management of Catherine Barnett and that includes keep

686
00:32:49,789 --> 00:32:51,000
it beautiful which is

687
00:32:51,000 --> 00:32:56,430
the main reason for the change the FTEs and sustainability

688
00:32:56,430 --> 00:32:57,960
and then also the

689
00:32:57,960 --> 00:33:03,759
sustainability recycling and marketing group so

690
00:33:03,759 --> 00:33:06,799
accomplishments for 1718 we

691
00:33:06,799 --> 00:33:10,210
achieved a three star certification star is a community

692
00:33:10,210 --> 00:33:10,920
rating for

693
00:33:10,920 --> 00:33:15,789
sustainability a three rating for a city our size is very

694
00:33:15,789 --> 00:33:18,119
very good so usually

695
00:33:18,119 --> 00:33:21,150
you don't see that except on larger cities so we're doing

696
00:33:21,150 --> 00:33:22,039
very well there

697
00:33:22,039 --> 00:33:26,170
completed review and final approval of sub chapter 17 of

698
00:33:26,170 --> 00:33:27,640
the development code

699
00:33:27,640 --> 00:33:32,460
regarding environmentally sensitive areas that was a very

700
00:33:32,460 --> 00:33:33,920
large project that

701
00:33:33,920 --> 00:33:38,359
Deborah Vieira oversaw and got through to completion we met

702
00:33:38,359 --> 00:33:39,279
or exceeded all our

703
00:33:39,279 --> 00:33:43,400
requirements to retain our designation of a high performing

704
00:33:43,400 --> 00:33:44,039
pretreatment

705
00:33:44,039 --> 00:33:47,589
program we've received a zero compliance history score

706
00:33:47,589 --> 00:33:48,920
which sounds really bad

707
00:33:48,920 --> 00:33:52,150
but that's actually really good I really would like to

708
00:33:52,150 --> 00:33:53,839
petition the TCQ to change

709
00:33:53,839 --> 00:33:56,690
that scoring because it sounds bad but zero zero means we

710
00:33:56,690 --> 00:33:57,559
didn't have any

711
00:33:57,559 --> 00:34:01,519
violations we implemented the energy star portfolio manager

712
00:34:01,519 --> 00:34:02,440
to track our

713
00:34:02,440 --> 00:34:06,529
municipal building energy use so we're doing that that's

714
00:34:06,529 --> 00:34:07,680
going to be an

715
00:34:07,680 --> 00:34:10,079
interesting project because it feeds in and gives us a

716
00:34:10,079 --> 00:34:11,320
little bit better data on

717
00:34:11,320 --> 00:34:15,260
our greenhouse gas inventory for the for the city as well

718
00:34:15,260 --> 00:34:16,679
as helping us track our

719
00:34:16,679 --> 00:34:19,510
energy usage and see where we might be able to implement

720
00:34:19,510 --> 00:34:20,679
some savings and then

721
00:34:20,679 --> 00:34:23,679
we coordinated with SECO the Texas State Energy

722
00:34:23,679 --> 00:34:26,920
Conservation Office to actually

723
00:34:26,920 --> 00:34:29,920
come here and help us conduct energy audits for 10 of our

724
00:34:29,920 --> 00:34:30,599
higher usage

725
00:34:30,599 --> 00:34:34,480
municipal buildings and we have a set of recommendations

726
00:34:34,480 --> 00:34:36,039
for for those some of our

727
00:34:36,039 --> 00:34:41,030
goals for 1819 is to revise our air quality action plan

728
00:34:41,030 --> 00:34:42,719
basically this plan

729
00:34:42,719 --> 00:34:49,880
is a component of our overall greenhouse gas emissions our

730
00:34:49,880 --> 00:34:51,079
idea there is to

731
00:34:51,079 --> 00:34:54,300
basically build that out further so it's not just dealing

732
00:34:54,300 --> 00:34:55,760
with greenhouse gas

733
00:34:55,760 --> 00:34:57,820
emissions we'll be working on that through the committee on

734
00:34:57,820 --> 00:34:58,480
the environment

735
00:34:58,480 --> 00:35:03,099
we do need to draft a stormwater ordinance for industrial

736
00:35:03,099 --> 00:35:04,239
sites and our

737
00:35:04,239 --> 00:35:08,300
utility inspections to basically address some of our new

738
00:35:08,300 --> 00:35:10,280
requirements for our MS4

739
00:35:10,280 --> 00:35:13,659
municipal separate storm sewer permit we now have

740
00:35:13,659 --> 00:35:15,679
responsibility underneath the

741
00:35:15,679 --> 00:35:19,679
new permit to actually inspect linear projects which are

742
00:35:19,679 --> 00:35:21,400
typically franchises

743
00:35:21,400 --> 00:35:24,829
like gas utilities and cable utilities in addition to the

744
00:35:24,829 --> 00:35:26,159
inspections that we

745
00:35:26,159 --> 00:35:28,480
have to do for all the active construction sites in the

746
00:35:28,480 --> 00:35:30,239
city so it's a

747
00:35:30,239 --> 00:35:33,690
it's becoming a larger and larger program as the

748
00:35:33,690 --> 00:35:35,559
regulations continue to

749
00:35:35,559 --> 00:35:40,000
to evolve we want to draft and approve technical criteria

750
00:35:40,000 --> 00:35:41,159
manuals for managing

751
00:35:41,159 --> 00:35:43,489
environmentally sensitive areas this is one of the things

752
00:35:43,489 --> 00:35:44,199
that we said we would

753
00:35:44,199 --> 00:35:47,079
do with the committee on the environment for sub chapters

754
00:35:47,079 --> 00:35:49,239
17 revisions complete

755
00:35:49,239 --> 00:35:52,039
our updates to the sustainability plan adopt and implement

756
00:35:52,039 --> 00:35:52,920
we've had several

757
00:35:52,920 --> 00:35:56,179
public meetings and public surveys on that so we're in

758
00:35:56,179 --> 00:35:57,480
process right now of

759
00:35:57,480 --> 00:36:02,250
working through that particular plan we're going to expand

760
00:36:02,250 --> 00:36:04,239
our sustainability

761
00:36:04,239 --> 00:36:09,219
education series to include some some youth programs we

762
00:36:09,219 --> 00:36:11,440
this one is one I had

763
00:36:11,440 --> 00:36:15,159
to look at my cliff notes on the roots and shoots program

764
00:36:15,159 --> 00:36:16,480
this is this is kind

765
00:36:16,480 --> 00:36:19,889
of an interesting one it's it's an outgrowth not pardon the

766
00:36:19,889 --> 00:36:21,239
pun of the of

767
00:36:21,239 --> 00:36:26,280
the sustainable schools program we've done a lot of work

768
00:36:26,280 --> 00:36:27,840
with community

769
00:36:27,840 --> 00:36:32,280
gardens and and school-based composting this one is

770
00:36:32,280 --> 00:36:33,679
basically community

771
00:36:33,679 --> 00:36:38,500
volunteerism school volunteerism and so it kind of gives

772
00:36:38,500 --> 00:36:39,900
the next level to

773
00:36:39,900 --> 00:36:44,340
incorporate some of our already existing recycling and

774
00:36:44,340 --> 00:36:47,360
community gardens and and

775
00:36:47,360 --> 00:36:50,610
programs along those lines so we've been working with the

776
00:36:50,610 --> 00:36:52,079
ISD to build that that

777
00:36:52,079 --> 00:36:56,519
program out it's actually a program that is from the Jane

778
00:36:56,519 --> 00:36:57,159
good all

779
00:36:57,159 --> 00:37:00,190
association so you may be familiar with it it's a it's a

780
00:37:00,190 --> 00:37:01,400
pretty neat what it

781
00:37:01,400 --> 00:37:06,079
looks like so we want to complete the gas well inspection

782
00:37:06,079 --> 00:37:08,400
contract haven't

783
00:37:08,400 --> 00:37:10,780
really gone over this too much with the public utility

784
00:37:10,780 --> 00:37:11,639
board the gas well

785
00:37:11,639 --> 00:37:15,940
inspections was also moved under the environmental services

786
00:37:15,940 --> 00:37:17,079
group so we have

787
00:37:17,079 --> 00:37:19,929
an outside contract right now that's performing a lot of

788
00:37:19,929 --> 00:37:20,920
those inspection

789
00:37:20,920 --> 00:37:23,429
services for us and we want to evaluate that program and

790
00:37:23,429 --> 00:37:24,519
make a recommendation

791
00:37:24,519 --> 00:37:27,119
to City Council that will be coming up here very shortly

792
00:37:27,119 --> 00:37:28,679
and then one of the

793
00:37:28,679 --> 00:37:31,000
things that we've continued to try to do is improve that

794
00:37:31,000 --> 00:37:31,920
public education for

795
00:37:31,920 --> 00:37:35,420
gas well inspections we've done a lot of revisions to the

796
00:37:35,420 --> 00:37:36,480
website a lot of

797
00:37:36,480 --> 00:37:39,480
additional information on our enhanced monitoring that you

798
00:37:39,480 --> 00:37:40,480
can access now on our

799
00:37:40,480 --> 00:37:44,610
mapping application on that website see any of that data

800
00:37:44,610 --> 00:37:46,199
for any well that you

801
00:37:46,199 --> 00:37:50,800
have an interest in so we have a lot of performance

802
00:37:50,800 --> 00:37:52,480
measures within the

803
00:37:52,480 --> 00:37:56,119
organization I won't bore you with going through all these

804
00:37:56,119 --> 00:37:57,519
except to say that

805
00:37:57,519 --> 00:38:01,760
we're generally on target our green sense rebating fund

806
00:38:01,760 --> 00:38:03,320
expenditure is still

807
00:38:03,320 --> 00:38:05,650
a little bit on the low side but we always make that up in

808
00:38:05,650 --> 00:38:06,039
the third

809
00:38:06,039 --> 00:38:09,280
quarter because almost all of the the requests for that and

810
00:38:09,280 --> 00:38:10,199
the request for

811
00:38:10,199 --> 00:38:15,969
audits come in during the summer months not too surprising

812
00:38:15,969 --> 00:38:17,239
so the illicit

813
00:38:17,239 --> 00:38:21,480
discharge reported per number resolved of course we want to

814
00:38:21,480 --> 00:38:22,639
to keep that at a

815
00:38:22,639 --> 00:38:26,760
at a hundred percent average turnaround time for results

816
00:38:26,760 --> 00:38:28,159
for residents with

817
00:38:28,159 --> 00:38:30,639
drinking water complaints we had a less than 24 hour we've

818
00:38:30,639 --> 00:38:31,559
actually shaved that

819
00:38:31,559 --> 00:38:36,289
down to 18 so that's typically you'll get a response back

820
00:38:36,289 --> 00:38:37,599
before the end of

821
00:38:37,599 --> 00:38:40,920
the next business day the number of effluent discharge

822
00:38:40,920 --> 00:38:41,639
violations that

823
00:38:41,639 --> 00:38:44,440
regulated industrial sites we always like to keep it zero

824
00:38:44,440 --> 00:38:45,840
we're running about

825
00:38:45,840 --> 00:38:48,840
about two per quarter now which is not a bad number but one

826
00:38:48,840 --> 00:38:49,840
we need to work on a

827
00:38:49,840 --> 00:38:53,400
little bit and the number of on-site sanitary sewer

828
00:38:53,400 --> 00:38:54,559
facilities part of the

829
00:38:54,559 --> 00:38:57,949
pretreatment program actually regulates on-site sanitary se

830
00:38:57,949 --> 00:38:59,679
wers so you wouldn't

831
00:38:59,679 --> 00:39:02,070
think that there would be a lot of those in the city of

832
00:39:02,070 --> 00:39:02,840
Denton but our

833
00:39:02,840 --> 00:39:05,849
annexations have really incorporated quite a few of those

834
00:39:05,849 --> 00:39:06,320
so we're we're

835
00:39:06,320 --> 00:39:11,039
sitting at about 750 on-site sanitary sewer facilities that

836
00:39:11,039 --> 00:39:11,679
we go by and

837
00:39:11,679 --> 00:39:15,099
inspect and regulate so we're at a hundred percent right

838
00:39:15,099 --> 00:39:15,760
now of our

839
00:39:15,760 --> 00:39:19,960
complaints abated per number received so a couple of cost

840
00:39:19,960 --> 00:39:21,480
containment strategies

841
00:39:21,480 --> 00:39:24,599
just real quick we reviewed our water sample collection and

842
00:39:24,599 --> 00:39:26,679
analysis we tend

843
00:39:26,679 --> 00:39:29,710
to do this every few years because redundancies have this

844
00:39:29,710 --> 00:39:30,559
nasty habit of

845
00:39:30,559 --> 00:39:33,300
creeping in and so we're able to shave some of those off

846
00:39:33,300 --> 00:39:34,000
and save about

847
00:39:34,000 --> 00:39:37,860
nineteen thousand dollars in cost savings without comprom

848
00:39:37,860 --> 00:39:38,920
ising any of our

849
00:39:38,920 --> 00:39:42,000
quality control or pollution prevention responsibilities

850
00:39:42,000 --> 00:39:43,119
and then we reduce those

851
00:39:43,119 --> 00:39:45,440
two FTEs that I mentioned earlier under the landfill

852
00:39:45,440 --> 00:39:46,760
regulatory compliance with

853
00:39:46,760 --> 00:39:52,340
landfill mining so completed projects we finished the 301

854
00:39:52,340 --> 00:39:53,159
East McKinney Street

855
00:39:53,159 --> 00:39:55,730
property remediation the property right across from us

856
00:39:55,730 --> 00:39:56,619
through the Texas

857
00:39:56,619 --> 00:40:00,219
Commission on Environmental Quality Voluntary Cleanup

858
00:40:00,219 --> 00:40:01,639
Program restructured

859
00:40:01,639 --> 00:40:04,659
the rates for private waste haulers to provide a little bit

860
00:40:04,659 --> 00:40:05,679
more equity there

861
00:40:05,679 --> 00:40:09,599
and bring us more in line with other municipalities we also

862
00:40:09,599 --> 00:40:10,400
increased

863
00:40:10,400 --> 00:40:13,619
opportunities for the smaller haulers there's a an

864
00:40:13,619 --> 00:40:15,199
adjustment that's been

865
00:40:15,199 --> 00:40:19,030
made that makes it that a little bit more a little bit

866
00:40:19,030 --> 00:40:20,800
easier to bear because

867
00:40:20,800 --> 00:40:24,670
they have a tendency to be obviously not a the larger more

868
00:40:24,670 --> 00:40:26,119
profitable businesses

869
00:40:26,119 --> 00:40:30,239
we consolidated the recycling education and outreach and

870
00:40:30,239 --> 00:40:31,039
keep it in beautiful

871
00:40:31,039 --> 00:40:35,130
under sustainability as I mentioned earlier we're currently

872
00:40:35,130 --> 00:40:36,760
renovating our

873
00:40:36,760 --> 00:40:40,139
renovated a building at the wastewater treatment plant into

874
00:40:40,139 --> 00:40:41,239
a field laboratory

875
00:40:41,239 --> 00:40:44,539
this really helps us improve our analytical efficiency and

876
00:40:44,539 --> 00:40:45,320
helps us keep

877
00:40:45,320 --> 00:40:51,010
the the high-end laboratory equipment from from the field

878
00:40:51,010 --> 00:40:52,699
equipment we

879
00:40:52,699 --> 00:40:55,530
installed a permanent odor control vapor system along the

880
00:40:55,530 --> 00:40:56,280
south and east

881
00:40:56,280 --> 00:40:59,130
perimeters of the landfill we were using portable units

882
00:40:59,130 --> 00:41:00,380
before you actually have

883
00:41:00,380 --> 00:41:03,840
an item tonight about about some of that odor control

884
00:41:03,840 --> 00:41:04,719
equipment that Ethan's

885
00:41:04,719 --> 00:41:09,199
going to bring forward future projects always looking to

886
00:41:09,199 --> 00:41:10,119
improve our mosquito

887
00:41:10,119 --> 00:41:13,119
surveillance and response plan that's also one that

888
00:41:13,119 --> 00:41:14,480
environmental services is

889
00:41:14,480 --> 00:41:18,500
responsible for continue to develop our laboratory

890
00:41:18,500 --> 00:41:20,360
information management system

891
00:41:20,360 --> 00:41:23,659
and really use that to produce information automated

892
00:41:23,659 --> 00:41:24,679
reports etc and

893
00:41:24,679 --> 00:41:28,369
then also streamline the transfer of information the TCQ is

894
00:41:28,369 --> 00:41:30,119
getting more and

895
00:41:30,119 --> 00:41:34,300
more up to speed on acceptance of digital reporting and so

896
00:41:34,300 --> 00:41:34,840
that's been a

897
00:41:34,840 --> 00:41:38,760
really nice system there's no lost in the mail lost in the

898
00:41:38,760 --> 00:41:40,119
building issues to

899
00:41:40,119 --> 00:41:44,889
deal with and then of course ensure the compliance with our

900
00:41:44,889 --> 00:41:45,920
new monitoring

901
00:41:45,920 --> 00:41:49,750
requirements under our landfill municipal solid waste

902
00:41:49,750 --> 00:41:51,840
permit so that's

903
00:41:51,840 --> 00:41:54,960
pretty much it for environmental services I'd be happy to

904
00:41:54,960 --> 00:41:55,400
answer any

905
00:41:55,400 --> 00:41:58,280
questions anyone has

906
00:42:00,119 --> 00:42:05,030
yes sir questions no I just oh okay I'm just gonna ask for

907
00:42:05,030 --> 00:42:06,079
questions from

908
00:42:06,079 --> 00:42:11,769
anybody no okay thank you thank Tony's gonna take the right

909
00:42:11,769 --> 00:42:13,400
image now

910
00:42:23,719 --> 00:42:25,010
well as I mentioned at the beginning of our presentation we

911
00:42:25,010 --> 00:42:27,159
've kind of

912
00:42:27,159 --> 00:42:31,119
separated this out to just bring a little more transparency

913
00:42:31,119 --> 00:42:31,480
to it

914
00:42:31,480 --> 00:42:36,369
Daniel Kramer is our new deputy director of operations he's

915
00:42:36,369 --> 00:42:37,360
sitting right over

916
00:42:37,360 --> 00:42:41,289
there and he'll be coming up when we get to the department

917
00:42:41,289 --> 00:42:42,519
al section to go

918
00:42:42,519 --> 00:42:45,750
through that particular section I'll cover the the

919
00:42:45,750 --> 00:42:47,480
financial section of this

920
00:42:47,480 --> 00:42:51,559
presentation if you recall back a few months ago we did

921
00:42:51,559 --> 00:42:54,079
come to to the board

922
00:42:54,079 --> 00:42:58,050
with a recommendation to utilize some dollars that we had

923
00:42:58,050 --> 00:42:59,559
in our CIP that had

924
00:42:59,559 --> 00:43:03,420
accumulated as a result some of these transfers and we use

925
00:43:03,420 --> 00:43:04,699
that to bridge the

926
00:43:04,699 --> 00:43:08,900
gap of some more 2014 bond program projects that were

927
00:43:08,900 --> 00:43:11,039
drainage related the

928
00:43:11,039 --> 00:43:15,480
council did approve the use of those funds back on the 8th

929
00:43:15,480 --> 00:43:16,360
of May and so

930
00:43:16,360 --> 00:43:19,670
those projects one of them being the Hinkle project with

931
00:43:19,670 --> 00:43:20,880
Magnolia drainage

932
00:43:20,880 --> 00:43:23,619
project which is a major project with project that was very

933
00:43:23,619 --> 00:43:24,360
important to the

934
00:43:24,360 --> 00:43:27,510
citizens as part of that program we'll be one of those

935
00:43:27,510 --> 00:43:29,320
projects about 1.7

936
00:43:29,320 --> 00:43:35,010
million will be coming from that drainage channel rehab

937
00:43:35,010 --> 00:43:36,239
fund to to bridge

938
00:43:36,239 --> 00:43:40,480
the gap on that and so anyways want to point out that for

939
00:43:40,480 --> 00:43:41,760
you so just a little

940
00:43:41,760 --> 00:43:45,719
bit of history here of the of the drainage believe it or

941
00:43:45,719 --> 00:43:46,639
not this predates

942
00:43:46,639 --> 00:43:52,070
me so I started with the city back in 99 so but anyways so

943
00:43:52,070 --> 00:43:54,119
this drainage program

944
00:43:54,119 --> 00:43:59,789
prior to 1999 was funded from the general fund it was

945
00:43:59,789 --> 00:44:01,320
subsequently moved

946
00:44:01,320 --> 00:44:06,269
from the general fund into the wastewater fund and it was a

947
00:44:06,269 --> 00:44:07,280
mixture of

948
00:44:07,280 --> 00:44:11,730
funding for for that function at that time about 70% of the

949
00:44:11,730 --> 00:44:12,880
funding came from

950
00:44:12,880 --> 00:44:17,039
water about the other the other 30% came from wastewater

951
00:44:17,039 --> 00:44:19,440
and then late in in 2000

952
00:44:19,440 --> 00:44:25,679
there was a recommendation to implement a drainage fee

953
00:44:25,679 --> 00:44:28,239
identified the the actual

954
00:44:28,239 --> 00:44:31,110
program what the cost would be that would be included in

955
00:44:31,110 --> 00:44:32,079
that and and also

956
00:44:32,079 --> 00:44:35,079
established the the the level of revenue that would be

957
00:44:35,079 --> 00:44:37,320
needed to fund those some

958
00:44:37,320 --> 00:44:40,440
of the operations that were included it was of course the

959
00:44:40,440 --> 00:44:41,559
drainage operation

960
00:44:41,559 --> 00:44:45,360
maintenance component the stormwater program street

961
00:44:45,360 --> 00:44:47,599
sweeping program and also

962
00:44:47,599 --> 00:44:53,869
to fund a limited capital program these are minor capital

963
00:44:53,869 --> 00:44:55,639
projects where where

964
00:44:55,639 --> 00:44:59,480
maybe debt is infeasible or economical and it's easier to

965
00:44:59,480 --> 00:45:00,400
just utilize a

966
00:45:00,400 --> 00:45:04,099
revenue funding those projects and we'll talk a little bit

967
00:45:04,099 --> 00:45:05,079
about some of those

968
00:45:05,079 --> 00:45:10,900
projects going forward for you so in January of 2002 the

969
00:45:10,900 --> 00:45:12,360
council did approve

970
00:45:12,360 --> 00:45:17,179
a drainage free a drainage fee in the city of Denton that

971
00:45:17,179 --> 00:45:18,800
eliminated the need

972
00:45:18,800 --> 00:45:23,670
to to fund that these functions from water and wastewater

973
00:45:23,670 --> 00:45:24,599
and that has

974
00:45:24,599 --> 00:45:30,480
continued to today I will I will tell the board I will say

975
00:45:30,480 --> 00:45:31,079
to the board that

976
00:45:31,079 --> 00:45:36,199
since 2002 those fees have not increased and we are

977
00:45:36,199 --> 00:45:37,000
currently making no

978
00:45:37,000 --> 00:45:43,289
recommendations on increasing or decreasing those fees some

979
00:45:43,289 --> 00:45:44,119
of the cost

980
00:45:44,119 --> 00:45:47,239
containment strategies again these are very similar to what

981
00:45:47,239 --> 00:45:48,119
you've seen with

982
00:45:48,119 --> 00:45:51,800
water and wastewater we continue to look at turnover we

983
00:45:51,800 --> 00:45:54,599
have had turnover in in

984
00:45:54,599 --> 00:45:57,090
that particular operation again is just part of the

985
00:45:57,090 --> 00:45:58,679
management of that operation

986
00:45:58,679 --> 00:46:03,400
we also do fund small capital improvement program projects

987
00:46:03,400 --> 00:46:04,119
this year

988
00:46:04,119 --> 00:46:08,110
as I mentioned we did fund some some projects that related

989
00:46:08,110 --> 00:46:09,960
to the 2014 bond

990
00:46:09,960 --> 00:46:14,639
program and it also utilizing mapping to reduce personnel

991
00:46:14,639 --> 00:46:16,400
time so some of the

992
00:46:16,400 --> 00:46:20,230
assumptions again that have gone into into this forecast no

993
00:46:20,230 --> 00:46:21,360
change in the

994
00:46:21,360 --> 00:46:24,920
current fee schedule again that's been in place since 2002

995
00:46:24,920 --> 00:46:25,559
and I'll recommend

996
00:46:25,559 --> 00:46:29,469
any changes the drainage fee is calculated based on a

997
00:46:29,469 --> 00:46:31,440
square footage of

998
00:46:31,440 --> 00:46:35,280
impervious surface and apologize that we had a misspell in

999
00:46:35,280 --> 00:46:36,480
there incorrect word

1000
00:46:36,480 --> 00:46:40,039
but it's a surface drainage reserve as I mentioned earlier

1001
00:46:40,039 --> 00:46:41,519
to you as part of the

1002
00:46:41,519 --> 00:46:46,360
wastewater presentation we are showing it as a reserve in

1003
00:46:46,360 --> 00:46:46,960
this particular

1004
00:46:46,960 --> 00:46:50,920
function and then the drainage revenue for the drainage fee

1005
00:46:50,920 --> 00:46:52,000
can only be used

1006
00:46:52,000 --> 00:46:54,989
for drainage as I mentioned to you already the items that

1007
00:46:54,989 --> 00:46:55,760
it could cover

1008
00:46:55,760 --> 00:46:59,670
and there is no recommended changes for the use of that

1009
00:46:59,670 --> 00:47:01,320
drainage fee revenue

1010
00:47:01,320 --> 00:47:04,969
some of the risks and mitigations that we're doing of

1011
00:47:04,969 --> 00:47:06,480
course we have aging

1012
00:47:06,480 --> 00:47:11,000
infrastructure there are a number of channels and lines

1013
00:47:11,000 --> 00:47:11,519
that need to be

1014
00:47:11,519 --> 00:47:15,679
replaced and upgraded there's public safety concerns as

1015
00:47:15,679 --> 00:47:17,400
well regarding some

1016
00:47:17,400 --> 00:47:20,159
of the road crossings and pipes and relate to some of the

1017
00:47:20,159 --> 00:47:21,280
smaller projects and

1018
00:47:21,280 --> 00:47:25,110
contractor costs of course are always something for us to

1019
00:47:25,110 --> 00:47:26,639
think about as as we

1020
00:47:26,639 --> 00:47:31,730
look at these projects just quickly this particular

1021
00:47:31,730 --> 00:47:33,400
function this particular cost

1022
00:47:33,400 --> 00:47:38,019
center is a self balancing as you can see here the revenue

1023
00:47:38,019 --> 00:47:39,000
that's generated

1024
00:47:39,000 --> 00:47:43,889
either goes to pay for O&M any transfers that we may have

1025
00:47:43,889 --> 00:47:45,159
for some of our

1026
00:47:45,159 --> 00:47:50,329
internal service funds also to service the debt and in any

1027
00:47:50,329 --> 00:47:51,840
any additional

1028
00:47:51,840 --> 00:47:55,809
revenue goes into revenue funding of capital and it goes

1029
00:47:55,809 --> 00:47:57,039
into our capital

1030
00:47:57,039 --> 00:48:03,039
program again no rate increases no changes in the rates for

1031
00:48:03,039 --> 00:48:03,840
that's being

1032
00:48:03,840 --> 00:48:06,449
recommended at this time we do show the reserve of a

1033
00:48:06,449 --> 00:48:08,800
million dollars here to my

1034
00:48:08,800 --> 00:48:11,920
knowledge we've never used that particular reserve but it's

1035
00:48:11,920 --> 00:48:12,559
something

1036
00:48:12,559 --> 00:48:19,000
that we've maintained for just just in case so that is the

1037
00:48:19,000 --> 00:48:20,079
the the forecast for

1038
00:48:20,079 --> 00:48:25,030
you some of the budget highlights for 18 19 we're

1039
00:48:25,030 --> 00:48:26,679
projecting about a four point

1040
00:48:26,679 --> 00:48:30,760
seven million dollars of drainage fee revenue that will

1041
00:48:30,760 --> 00:48:32,480
come into that to fund

1042
00:48:32,480 --> 00:48:36,199
that operation we also have about three hundred thousand

1043
00:48:36,199 --> 00:48:37,199
dollars of a transfer

1044
00:48:37,199 --> 00:48:40,860
in that's to cover some of the cost of programs like

1045
00:48:40,860 --> 00:48:42,719
mosquito abatement and

1046
00:48:42,719 --> 00:48:45,929
some of these environmental services functions that dr.

1047
00:48:45,929 --> 00:48:47,320
Banks just spoke with

1048
00:48:47,320 --> 00:48:51,519
you about in a small amount related to auction proceeds

1049
00:48:51,519 --> 00:48:53,440
that's when we sell

1050
00:48:53,440 --> 00:48:57,170
surplus vehicles or vehicles that are no longer needed for

1051
00:48:57,170 --> 00:48:58,280
the city and also

1052
00:48:58,280 --> 00:49:03,969
miscellaneous equipment this gives you some of the budget

1053
00:49:03,969 --> 00:49:06,679
highlights for for

1054
00:49:06,679 --> 00:49:10,909
this function as I mentioned to you we do have turnover in

1055
00:49:10,909 --> 00:49:12,239
this fund we have

1056
00:49:12,239 --> 00:49:17,239
seen some turnover we've also moved previous costs that we

1057
00:49:17,239 --> 00:49:18,639
had here for the

1058
00:49:18,639 --> 00:49:21,639
street superintendent that is no longer overseeing this

1059
00:49:21,639 --> 00:49:22,519
operation we've moved

1060
00:49:22,519 --> 00:49:27,429
that those expenses out of there but again we also now have

1061
00:49:27,429 --> 00:49:28,119
you know Daniel

1062
00:49:28,119 --> 00:49:32,159
Kramer who's over that overseeing that area that his costs

1063
00:49:32,159 --> 00:49:33,440
are embedded in this

1064
00:49:33,440 --> 00:49:40,250
1.8 million so that's pretty much it again I mentioned to

1065
00:49:40,250 --> 00:49:40,719
you this is a

1066
00:49:40,719 --> 00:49:46,320
self-balancing operation function cost center for the city

1067
00:49:46,320 --> 00:49:47,840
any money above and

1068
00:49:47,840 --> 00:49:50,679
beyond those normal operating costs are transferred over

1069
00:49:50,679 --> 00:49:51,519
into our capital

1070
00:49:51,519 --> 00:49:57,119
project fund to fund smaller capital projects and Daniel go

1071
00:49:57,119 --> 00:49:57,679
through a little

1072
00:49:57,679 --> 00:50:00,420
bit and talk to you about some of those planned projects so

1073
00:50:00,420 --> 00:50:01,599
unless you have any

1074
00:50:01,599 --> 00:50:04,110
questions or if you have any questions if you don't I can

1075
00:50:04,110 --> 00:50:04,840
turn it over to

1076
00:50:04,840 --> 00:50:10,090
Daniel yes ma'am I have a question under the future process

1077
00:50:10,090 --> 00:50:10,920
improvement but I'm

1078
00:50:10,920 --> 00:50:13,659
not sure if this a question for you or yeah Daniel will

1079
00:50:13,659 --> 00:50:14,599
come up here he'll go

1080
00:50:14,599 --> 00:50:19,119
through that he'll be happy to okay thanks

1081
00:50:24,159 --> 00:50:27,690
evening ladies and gentlemen my name is Daniel Kramer I'm

1082
00:50:27,690 --> 00:50:28,920
the deputy director of

1083
00:50:28,920 --> 00:50:32,070
operations for the streets and drainage department here for

1084
00:50:32,070 --> 00:50:33,079
the city of Denton

1085
00:50:33,079 --> 00:50:39,159
okay so drainage goals and the compliment accomplishments

1086
00:50:39,159 --> 00:50:40,280
some of the

1087
00:50:40,280 --> 00:50:43,480
ones we've been working on for this physical year have been

1088
00:50:43,480 --> 00:50:44,440
the Canton

1089
00:50:44,440 --> 00:50:50,349
Berry excuse me can't Mary court storm drains expenses you

1090
00:50:50,349 --> 00:50:50,920
know year-to-date

1091
00:50:50,920 --> 00:50:53,800
we're sitting about eighty six thousand out of the budget

1092
00:50:53,800 --> 00:50:55,079
150 and that one's

1093
00:50:55,079 --> 00:51:00,059
planned to be completed in June Kingswood expense the Kings

1094
00:51:00,059 --> 00:51:01,760
wood court we

1095
00:51:01,760 --> 00:51:06,710
also have expenses at about 31,000 and that one is complete

1096
00:51:06,710 --> 00:51:07,079
out of a budget

1097
00:51:07,079 --> 00:51:14,130
50,000 and for the Rockwood we also is in design and that

1098
00:51:14,130 --> 00:51:15,440
is scheduled as long

1099
00:51:15,440 --> 00:51:18,179
as everything holds together be done in September with

1100
00:51:18,179 --> 00:51:20,960
about 20 close to 27,000

1101
00:51:20,960 --> 00:51:25,650
out budgeted 350,000 for now for design some of the goals

1102
00:51:25,650 --> 00:51:28,679
for 1819 will be the

1103
00:51:28,679 --> 00:51:34,980
South Bell storm drains and that is in design for future

1104
00:51:34,980 --> 00:51:35,679
starting at the first

1105
00:51:35,679 --> 00:51:43,119
of 2019 and the Smith excuse me Smith storm drains and that

1106
00:51:43,119 --> 00:51:43,800
is planned on

1107
00:51:43,800 --> 00:51:48,239
being the in the fall have some we're waiting on atmosphere

1108
00:51:48,239 --> 00:51:49,119
right now to move

1109
00:51:49,119 --> 00:51:52,119
one of their gas lines for us for that one and the oak tree

1110
00:51:52,119 --> 00:51:53,719
and Choctaw the

1111
00:51:53,719 --> 00:51:57,150
jobs have not officially been set up but they're scheduled

1112
00:51:57,150 --> 00:52:00,679
for the summer of 19

1113
00:52:01,119 --> 00:52:07,000
some of the budget emphasis for drainage is to improve the

1114
00:52:07,000 --> 00:52:09,159
storm drain system to

1115
00:52:09,159 --> 00:52:12,440
prioritize the citizens from potential flooding risk

1116
00:52:12,440 --> 00:52:13,760
maintain the storm drain

1117
00:52:13,760 --> 00:52:16,880
system reducing amount of silt and debris going to the lake

1118
00:52:16,880 --> 00:52:18,239
so clean out

1119
00:52:18,239 --> 00:52:20,570
our channels maintain our channels making sure they all

1120
00:52:20,570 --> 00:52:21,239
stay clean we get

1121
00:52:21,239 --> 00:52:24,320
all that out there reduce the standing water to minimize

1122
00:52:24,320 --> 00:52:25,320
the mosquito population

1123
00:52:25,320 --> 00:52:29,760
in the area and also maintain regulatory compliance with

1124
00:52:29,760 --> 00:52:31,280
the TCEQ municipal

1125
00:52:31,280 --> 00:52:35,320
separate stormwater system MS4 permit for the watershed

1126
00:52:35,320 --> 00:52:39,039
protection some of

1127
00:52:39,039 --> 00:52:42,039
the process improvements we've completed mapping the storm

1128
00:52:42,039 --> 00:52:43,679
water system from Pecan

1129
00:52:43,679 --> 00:52:47,309
Creek the guys have been out working on that when the

1130
00:52:47,309 --> 00:52:49,159
weather has been a little

1131
00:52:49,159 --> 00:52:51,480
off whatever they'll go out and verify all of our drains

1132
00:52:51,480 --> 00:52:52,199
all of our stuff make

1133
00:52:52,199 --> 00:52:54,940
sure that we have all the information in there all the pipe

1134
00:52:54,940 --> 00:52:56,000
sizes and all that

1135
00:52:56,000 --> 00:52:59,809
improve inlet inspection processes utilizing mapping same

1136
00:52:59,809 --> 00:53:00,880
with that to

1137
00:53:00,880 --> 00:53:03,199
verify that'll help us be able to create our work orders

1138
00:53:03,199 --> 00:53:03,840
and keep all of our

1139
00:53:03,840 --> 00:53:06,320
system digitalized so we know where everything is and what

1140
00:53:06,320 --> 00:53:06,800
all of our

1141
00:53:06,800 --> 00:53:09,119
systems are and what state they're in at all times and

1142
00:53:09,119 --> 00:53:10,880
customer response tracking

1143
00:53:10,880 --> 00:53:13,960
working on that if we have any issues or anything coming up

1144
00:53:13,960 --> 00:53:15,199
from our customers we

1145
00:53:15,199 --> 00:53:17,679
can get out there we can take a look at it document it all

1146
00:53:17,679 --> 00:53:18,559
so that we have that

1147
00:53:18,559 --> 00:53:23,429
there for us future process improvements is keep going

1148
00:53:23,429 --> 00:53:25,199
forward on the mapping for

1149
00:53:25,199 --> 00:53:29,130
the Cooper Creek and Hickory Creek to continue that process

1150
00:53:29,130 --> 00:53:30,239
and utilize the

1151
00:53:30,239 --> 00:53:35,230
mapping system to track stormwater assist inspections and

1152
00:53:35,230 --> 00:53:36,719
analyze need for

1153
00:53:36,719 --> 00:53:40,050
adding additional street sweeper for the future growth and

1154
00:53:40,050 --> 00:53:40,960
then update the

1155
00:53:40,960 --> 00:53:43,789
drainage CIP plan for current needs and future replacement

1156
00:53:43,789 --> 00:53:44,239
of aging

1157
00:53:44,239 --> 00:53:51,070
infrastructures for our position summary as Tony mentioned

1158
00:53:51,070 --> 00:53:53,960
earlier in the 2017

1159
00:53:53,960 --> 00:53:56,760
2018 budget the reduction in the head was our street

1160
00:53:56,760 --> 00:53:58,059
superintendent which was

1161
00:53:58,059 --> 00:54:00,889
brought out of drainage and he's no longer over that and

1162
00:54:00,889 --> 00:54:02,400
then for the

1163
00:54:02,400 --> 00:54:08,329
addition of our one one FTE in the 18 and 19 is for the

1164
00:54:08,329 --> 00:54:10,119
watershed stormwater

1165
00:54:10,119 --> 00:54:19,760
protection super for the intern for that one so currently

1166
00:54:19,760 --> 00:54:21,639
for our five-year

1167
00:54:21,639 --> 00:54:25,619
capital plan our main ones that we're sitting at are the

1168
00:54:25,619 --> 00:54:28,079
Choctaw drainage

1169
00:54:28,079 --> 00:54:33,269
which the drainage project was not on the original list but

1170
00:54:33,269 --> 00:54:34,800
it was triggered

1171
00:54:34,800 --> 00:54:37,539
from some neighborhood associations recent out to the

1172
00:54:37,539 --> 00:54:40,559
council the primos

1173
00:54:40,559 --> 00:54:43,800
promos development designed the discharge from their

1174
00:54:43,800 --> 00:54:45,039
detention pond onto

1175
00:54:45,039 --> 00:54:47,849
the street and caused a lot of water flowing through the

1176
00:54:47,849 --> 00:54:49,880
neighborhood so with

1177
00:54:49,880 --> 00:54:52,230
the text that also improved highway 380 to create

1178
00:54:52,230 --> 00:54:53,440
additional flow through the

1179
00:54:53,440 --> 00:54:56,579
creek this neighborhood does not have an underground water

1180
00:54:56,579 --> 00:54:57,880
system and Creek

1181
00:54:57,880 --> 00:55:00,880
crossings are undersized so that's where that one comes

1182
00:55:00,880 --> 00:55:02,639
into play we also had the

1183
00:55:02,639 --> 00:55:06,630
the oak tree drainage system which has been on the list and

1184
00:55:06,630 --> 00:55:07,800
was originally

1185
00:55:07,800 --> 00:55:12,239
listed as white Creek drainage improvements the storm drain

1186
00:55:12,239 --> 00:55:12,480
pipe

1187
00:55:12,480 --> 00:55:16,440
beginning at Audrey Lane is a metal pipe that is failing

1188
00:55:16,440 --> 00:55:17,239
the neighborhood does

1189
00:55:17,239 --> 00:55:21,369
not have an underground system from the intersection of P

1190
00:55:21,369 --> 00:55:22,960
aisley to Malky up to

1191
00:55:22,960 --> 00:55:26,280
Oak Creek there's been numerous complaints over the years

1192
00:55:26,280 --> 00:55:26,860
mostly in the

1193
00:55:26,860 --> 00:55:30,489
summer and June storms so engineering has has done the

1194
00:55:30,489 --> 00:55:32,000
preliminary analysis

1195
00:55:32,000 --> 00:55:36,570
and costs for this project King's detention pond and out

1196
00:55:36,570 --> 00:55:37,840
fall project

1197
00:55:37,840 --> 00:55:40,960
analysis has also been determined for the structure is

1198
00:55:40,960 --> 00:55:42,159
needed to help reduce

1199
00:55:42,159 --> 00:55:45,690
the flow discharge from the pond to maximize the efficiency

1200
00:55:45,690 --> 00:55:47,159
and also the main

1201
00:55:47,159 --> 00:55:52,309
pecan which is main pecan project is starting preliminary

1202
00:55:52,309 --> 00:55:53,480
design of the

1203
00:55:53,480 --> 00:55:56,340
channel from downstream of sycamore Street which was built

1204
00:55:56,340 --> 00:55:57,079
to the hundred

1205
00:55:57,079 --> 00:56:00,800
year storm system up to frame Street this will this project

1206
00:56:00,800 --> 00:56:01,880
is going to help

1207
00:56:01,880 --> 00:56:05,030
determine the future funding to relieve the downtown

1208
00:56:05,030 --> 00:56:06,599
flooding along Hickory

1209
00:56:06,599 --> 00:56:16,760
McKenney Bell so some of the some of the 2014 bond funder

1210
00:56:16,760 --> 00:56:17,960
projects that we've had

1211
00:56:17,960 --> 00:56:21,349
which is only about ten point nine million dollars have

1212
00:56:21,349 --> 00:56:22,340
been the Eagle

1213
00:56:22,340 --> 00:56:26,360
Drive improvements Magnolia Street the peck for drainage H

1214
00:56:26,360 --> 00:56:27,440
ickory Street

1215
00:56:27,440 --> 00:56:30,440
drainage Oak Street and South Bell drainage most of those

1216
00:56:30,440 --> 00:56:31,079
are still in in

1217
00:56:31,079 --> 00:56:34,760
progress is also here's a map it's kind of a little hard to

1218
00:56:34,760 --> 00:56:35,480
see up on the

1219
00:56:35,480 --> 00:56:39,179
screen but we got some of the areas that we had from the

1220
00:56:39,179 --> 00:56:40,239
bond funding projects

1221
00:56:40,239 --> 00:56:48,289
for those and some of the future projects that we need to

1222
00:56:48,289 --> 00:56:48,880
look at in

1223
00:56:48,880 --> 00:56:51,489
the future on the next section which is unfunded we didn't

1224
00:56:51,489 --> 00:56:52,519
have on the last bond

1225
00:56:52,519 --> 00:56:54,840
but we got another twenty six point nine million of

1226
00:56:54,840 --> 00:56:56,079
projects to help get the whole

1227
00:56:56,079 --> 00:56:58,400
city out of the hundred year flood plan that we'll be

1228
00:56:58,400 --> 00:56:59,480
looking at coming up in

1229
00:56:59,480 --> 00:57:01,409
the future for the next bond election that we're going

1230
00:57:01,409 --> 00:57:03,280
through so I just want

1231
00:57:03,280 --> 00:57:05,599
to throw some of that out you know the Cooper Creek

1232
00:57:05,599 --> 00:57:07,039
improvements for Mingo Road

1233
00:57:07,039 --> 00:57:10,239
Sherman Drive peck for drainage three and four and also pe

1234
00:57:10,239 --> 00:57:11,880
can Creek and those

1235
00:57:11,880 --> 00:57:16,960
are some of the locations for those areas up there okay

1236
00:57:16,960 --> 00:57:20,360
are any questions

1237
00:57:22,480 --> 00:57:27,179
yeah the 2014 projects that you just listed are those all

1238
00:57:27,179 --> 00:57:29,000
complete no sir not

1239
00:57:29,000 --> 00:57:31,320
all of them we are still working on some of those are in

1240
00:57:31,320 --> 00:57:32,639
process for those can you

1241
00:57:32,639 --> 00:57:36,070
tell us a little bit about their completion and I do not

1242
00:57:36,070 --> 00:57:37,800
have those all

1243
00:57:37,800 --> 00:57:40,059
those numbers in front of me at the moment I can't get back

1244
00:57:40,059 --> 00:57:40,559
to you on that

1245
00:57:40,559 --> 00:57:46,110
sir I can tell you that Magnolia's in the process progress

1246
00:57:46,110 --> 00:57:47,559
right now I'll combine

1247
00:57:47,559 --> 00:57:51,610
that with the Hinkle Road projects that would be started I

1248
00:57:51,610 --> 00:57:52,440
'm hoping this fall

1249
00:57:52,440 --> 00:57:56,880
and I believe peck for council just amended the budget for

1250
00:57:56,880 --> 00:57:58,159
that but what the

1251
00:57:58,159 --> 00:58:02,039
peck for is it's the the major trunk line downtown

1252
00:58:02,039 --> 00:58:03,639
basically we've got we had

1253
00:58:03,639 --> 00:58:07,550
enough money to get to from the east to get to Elm Street

1254
00:58:07,550 --> 00:58:09,119
so that is under will

1255
00:58:09,119 --> 00:58:13,110
be under construction this year we just put a put together

1256
00:58:13,110 --> 00:58:14,199
a engineering

1257
00:58:14,199 --> 00:58:21,079
contract to take that major project from Elm to Carroll and

1258
00:58:21,079 --> 00:58:23,639
to get it designed so

1259
00:58:23,639 --> 00:58:26,380
it's ready for the next bond package so ran out of funding

1260
00:58:26,380 --> 00:58:27,159
in order to build

1261
00:58:27,159 --> 00:58:31,239
that however we'll get the design on this on the books and

1262
00:58:31,239 --> 00:58:31,880
if we've got a way

1263
00:58:31,880 --> 00:58:34,260
to we can find it before funded before the next bond

1264
00:58:34,260 --> 00:58:35,480
package you will otherwise

1265
00:58:35,480 --> 00:58:39,179
it'll be one of the very first things that we recommend the

1266
00:58:39,179 --> 00:58:40,360
other ones are all

1267
00:58:40,360 --> 00:58:44,449
either in Southville also was under construction so several

1268
00:58:44,449 --> 00:58:45,360
of those are in

1269
00:58:45,360 --> 00:58:48,809
the works right now and we just actually evil I can tell

1270
00:58:48,809 --> 00:58:50,239
you we just had a a

1271
00:58:50,239 --> 00:58:55,010
couple of easement swaps orchestrated by a City Council in

1272
00:58:55,010 --> 00:58:56,360
order to make that

1273
00:58:56,360 --> 00:58:59,119
project move forward as well so almost all of those are

1274
00:58:59,119 --> 00:59:00,719
either in design under

1275
00:59:00,719 --> 00:59:03,480
construction will be completed the next year or two okay

1276
00:59:03,480 --> 00:59:04,400
okay

1277
00:59:04,400 --> 00:59:08,360
I have one more question yes sir you mentioned the mapping

1278
00:59:08,360 --> 00:59:10,639
of the assets that

1279
00:59:10,639 --> 00:59:13,760
you had there were some accomplishments there and then

1280
00:59:13,760 --> 00:59:15,079
future efforts would be

1281
00:59:15,079 --> 00:59:19,329
to continue mapping do you have a any kind of percentage

1282
00:59:19,329 --> 00:59:20,559
estimate about how

1283
00:59:20,559 --> 00:59:23,590
many of the assets you have mapped or how many are left un

1284
00:59:23,590 --> 00:59:24,480
mapped or anything

1285
00:59:24,480 --> 00:59:27,599
like that well what we have we've mapped the whole pecan

1286
00:59:27,599 --> 00:59:28,800
Creek I don't have the

1287
00:59:28,800 --> 00:59:31,130
exact number of percentage versus the whole city versus

1288
00:59:31,130 --> 00:59:31,920
what we have and have

1289
00:59:31,920 --> 00:59:34,630
not done with me I can't get back to you on that but we're

1290
00:59:34,630 --> 00:59:35,320
doing it as in

1291
00:59:35,320 --> 00:59:39,570
sections so we can get a full complete section one at a

1292
00:59:39,570 --> 00:59:41,400
time okay thank you

1293
00:59:41,400 --> 00:59:50,170
sir I have a question that's as much for us here on pub is

1294
00:59:50,170 --> 00:59:51,099
for anyone from the

1295
00:59:51,099 --> 00:59:55,130
public watching and that is you mentioned that that a

1296
00:59:55,130 --> 00:59:56,519
number of the

1297
00:59:56,519 --> 01:00:00,239
drainage project were initiated by neighborhood

1298
01:00:00,239 --> 01:00:02,320
associations or residents

1299
01:00:02,320 --> 01:00:04,420
or businesses in the area coming forward and you know

1300
01:00:04,420 --> 01:00:05,480
calling these issues to

1301
01:00:05,480 --> 01:00:09,679
your attention is there you know if there's anybody

1302
01:00:09,679 --> 01:00:12,719
listening who who has a

1303
01:00:12,719 --> 01:00:16,730
drainage concern in their area what would you say is the

1304
01:00:16,730 --> 01:00:17,840
best way to see

1305
01:00:17,840 --> 01:00:21,030
that that's addressed by the city to go through council and

1306
01:00:21,030 --> 01:00:22,159
for them to directly

1307
01:00:22,159 --> 01:00:25,280
contact their council people to directly contact the

1308
01:00:25,280 --> 01:00:26,199
department some

1309
01:00:26,199 --> 01:00:29,530
combination of both deformant neighborhood association

1310
01:00:29,530 --> 01:00:30,199
going as an

1311
01:00:30,199 --> 01:00:34,489
individual etc just based on you know what you've seen and

1312
01:00:34,489 --> 01:00:35,079
which which

1313
01:00:35,079 --> 01:00:38,079
squeaky wheels have you know most quickly gotten it gotten

1314
01:00:38,079 --> 01:00:38,860
the grease and

1315
01:00:38,860 --> 01:00:42,360
gotten the attention what we normally do is our calls will

1316
01:00:42,360 --> 01:00:43,679
come in to our our

1317
01:00:43,679 --> 01:00:46,480
drainage manager Clark Olson doll he does get a lot of the

1318
01:00:46,480 --> 01:00:47,079
calls for any

1319
01:00:47,079 --> 01:00:49,929
kind of issues or anything that we have going on he will

1320
01:00:49,929 --> 01:00:51,519
document all those and

1321
01:00:51,519 --> 01:00:54,389
put them in a file and we'll look at the the cost analysis

1322
01:00:54,389 --> 01:00:55,400
based on what it is

1323
01:00:55,400 --> 01:00:57,690
and you know where it's at if we have funding for it if it

1324
01:00:57,690 --> 01:00:58,519
's something that we

1325
01:00:58,519 --> 01:01:00,849
can easily take care of or if we have to go out and put it

1326
01:01:00,849 --> 01:01:01,760
on an actual bigger

1327
01:01:01,760 --> 01:01:05,280
project for bonds or you know we'll do that basic analysis

1328
01:01:05,280 --> 01:01:06,199
you know that's

1329
01:01:06,199 --> 01:01:08,940
probably one of the best ways that we can get a hold of it

1330
01:01:08,940 --> 01:01:09,719
that way is just

1331
01:01:09,719 --> 01:01:12,539
call through the department you know or it can go through

1332
01:01:12,539 --> 01:01:13,519
council members and it

1333
01:01:13,519 --> 01:01:16,139
will trickle down through the through the ranks and we will

1334
01:01:16,139 --> 01:01:16,880
get a hold of that

1335
01:01:16,880 --> 01:01:21,480
and go through there okay thank you thank you I had a

1336
01:01:21,480 --> 01:01:23,079
second question go

1337
01:01:23,079 --> 01:01:26,710
ahead then my second question is a more specific question

1338
01:01:26,710 --> 01:01:27,480
about I'm under the

1339
01:01:27,480 --> 01:01:31,489
future process improvement one of the items was to analyze

1340
01:01:31,489 --> 01:01:32,920
the need for adding

1341
01:01:32,920 --> 01:01:36,639
additional streets street sweeper due to anticipated growth

1342
01:01:36,639 --> 01:01:38,000
yes and I was just

1343
01:01:38,000 --> 01:01:42,440
wondering you know if you have any projection for that in

1344
01:01:42,440 --> 01:01:43,360
terms of the

1345
01:01:43,360 --> 01:01:49,289
likelihood that that that will be needed and the timeline

1346
01:01:49,289 --> 01:01:51,639
for the the process of

1347
01:01:51,639 --> 01:01:57,400
analyzing that need right okay um currently we are we are

1348
01:01:57,400 --> 01:01:58,039
looking into it

1349
01:01:58,039 --> 01:02:01,030
there's a lot of new subdivisions that are being built in

1350
01:02:01,030 --> 01:02:01,920
in the system and

1351
01:02:01,920 --> 01:02:05,780
they do not turn over to us normally till they're building

1352
01:02:05,780 --> 01:02:06,840
out the final phase

1353
01:02:06,840 --> 01:02:09,989
and towards the end because as that time goes on as

1354
01:02:09,989 --> 01:02:11,880
construction still going on

1355
01:02:11,880 --> 01:02:14,670
there's still a lot of construction debris that gets all up

1356
01:02:14,670 --> 01:02:15,480
in the machines

1357
01:02:15,480 --> 01:02:18,239
and we get all the drainage and runoff and everything from

1358
01:02:18,239 --> 01:02:18,960
the construction

1359
01:02:18,960 --> 01:02:22,719
sites so those usually come in on the last phase so I don't

1360
01:02:22,719 --> 01:02:24,239
have those numbers

1361
01:02:24,239 --> 01:02:26,090
for you right now but we are looking at all the roads that

1362
01:02:26,090 --> 01:02:26,840
are coming in and it

1363
01:02:26,840 --> 01:02:31,280
kind of bears into is you know us as you know the council

1364
01:02:31,280 --> 01:02:33,039
and staff how often we

1365
01:02:33,039 --> 01:02:37,099
want these streets swept you know what's the you know do we

1366
01:02:37,099 --> 01:02:38,119
want them once a month

1367
01:02:38,119 --> 01:02:40,050
do we want them twice a month three times a month you know

1368
01:02:40,050 --> 01:02:40,760
how often we want

1369
01:02:40,760 --> 01:02:46,469
right now we run to two street sweepers and they run five

1370
01:02:46,469 --> 01:02:48,000
days a week I think

1371
01:02:48,000 --> 01:02:51,960
four or five days a week constantly on that to do all the

1372
01:02:51,960 --> 01:02:52,599
street sweeping that

1373
01:02:52,599 --> 01:02:56,199
we have right now we can still get more capacity out of

1374
01:02:56,199 --> 01:02:57,440
them it just means some

1375
01:02:57,440 --> 01:03:00,150
that we will not hit as often as we normally do so I will

1376
01:03:00,150 --> 01:03:01,239
have to get those

1377
01:03:01,239 --> 01:03:03,789
numbers for you can tell you how many streets that we will

1378
01:03:03,789 --> 01:03:04,599
be having come up

1379
01:03:04,599 --> 01:03:07,179
and how many we hit on a regular basis and what kind of

1380
01:03:07,179 --> 01:03:08,280
numbers we can look at

1381
01:03:08,280 --> 01:03:12,389
for that I know that you know that to determine the cost if

1382
01:03:12,389 --> 01:03:13,280
it's decided that

1383
01:03:13,280 --> 01:03:16,079
another street sweeper is necessary you'd have to do an RFP

1384
01:03:16,079 --> 01:03:16,880
but what just

1385
01:03:16,880 --> 01:03:23,179
roughly you know would you estimate is the cost of it the

1386
01:03:23,179 --> 01:03:24,920
range of it cost for

1387
01:03:24,920 --> 01:03:28,889
those numbers I can't tell you an exact number right now I

1388
01:03:28,889 --> 01:03:29,960
prefer not to say

1389
01:03:29,960 --> 01:03:33,380
being this is a new environment I don't want to throw out

1390
01:03:33,380 --> 01:03:35,719
that number I will get

1391
01:03:35,719 --> 01:03:38,960
that information thank you this is this is a fun part of

1392
01:03:38,960 --> 01:03:39,480
the reason that we

1393
01:03:39,480 --> 01:03:42,280
didn't recommend any changes to the fund balances it

1394
01:03:42,280 --> 01:03:43,119
probably hasn't been as

1395
01:03:43,119 --> 01:03:46,119
managed as aggressively as we would like the past and so a

1396
01:03:46,119 --> 01:03:47,000
lot of questions

1397
01:03:47,000 --> 01:03:50,769
you're asking they're asking and we're putting together

1398
01:03:50,769 --> 01:03:52,440
specific plans in terms

1399
01:03:52,440 --> 01:03:55,559
of ways which should be the service level in the community

1400
01:03:55,559 --> 01:03:56,599
you know do we

1401
01:03:56,599 --> 01:04:02,590
have a strong management plan maintenance plan we're

1402
01:04:02,590 --> 01:04:03,559
viewing this is

1403
01:04:03,559 --> 01:04:06,070
just an area where the crews historically there's even

1404
01:04:06,070 --> 01:04:06,559
turnover

1405
01:04:06,559 --> 01:04:10,090
they've gotten moved over to other things and it's probably

1406
01:04:10,090 --> 01:04:10,880
not it's not

1407
01:04:10,880 --> 01:04:13,619
not as much of a specific plan in there as we would like to

1408
01:04:13,619 --> 01:04:14,599
see so that's really

1409
01:04:14,599 --> 01:04:16,929
their charge over the next year is to get all those

1410
01:04:16,929 --> 01:04:17,880
questions and answer it

1411
01:04:17,880 --> 01:04:21,329
in a plan a better plan in place me it seems like this is

1412
01:04:21,329 --> 01:04:22,480
really headed in the

1413
01:04:22,480 --> 01:04:26,920
right direction big it's a big project to tackle it's city

1414
01:04:26,920 --> 01:04:28,239
wide but it looks

1415
01:04:28,239 --> 01:04:33,059
really good this place this may seem absurd but I'm gonna

1416
01:04:33,059 --> 01:04:35,239
say it anyway when

1417
01:04:35,239 --> 01:04:38,940
you're evaluating your streets street sweeper the future

1418
01:04:38,940 --> 01:04:39,920
purchase if you've

1419
01:04:39,920 --> 01:04:43,309
decided to make a future purpose purchase you might look at

1420
01:04:43,309 --> 01:04:43,880
one that can

1421
01:04:43,880 --> 01:04:47,610
get close enough to cul-de-sacs because they don't really

1422
01:04:47,610 --> 01:04:49,000
actually make it

1423
01:04:49,000 --> 01:04:51,329
through the cul-de-sac and that debris ends up staying

1424
01:04:51,329 --> 01:04:52,360
there because they can't

1425
01:04:52,360 --> 01:04:56,440
get close enough to the curved road and then the other

1426
01:04:56,440 --> 01:04:58,079
thing you might do is

1427
01:04:58,079 --> 01:05:01,539
publish when you're gonna be on somebody's street so they

1428
01:05:01,539 --> 01:05:02,239
could like move

1429
01:05:02,239 --> 01:05:05,500
their car so that all the leaves would get street swept

1430
01:05:05,500 --> 01:05:06,599
instead of him just

1431
01:05:06,599 --> 01:05:09,380
going around them and then they just leave the leaves there

1432
01:05:09,380 --> 01:05:10,000
sorry I just

1433
01:05:10,000 --> 01:05:13,710
streets we want to get the debris off because it plugs up

1434
01:05:13,710 --> 01:05:14,320
everything else so it's

1435
01:05:14,320 --> 01:05:17,579
not to keep the street clean it's to keep the stormwater

1436
01:05:17,579 --> 01:05:18,880
system clean it's a

1437
01:05:18,880 --> 01:05:22,889
very visual service so yes you see the street sweeper

1438
01:05:22,889 --> 01:05:24,960
coming I have one

1439
01:05:24,960 --> 01:05:30,110
question on this may be a Tony question but on the five-

1440
01:05:30,110 --> 01:05:32,179
year forecast drainage

1441
01:05:32,179 --> 01:05:37,289
forecast we're showing in 2023 and obviously the debt

1442
01:05:37,289 --> 01:05:38,159
service is going down

1443
01:05:38,159 --> 01:05:44,389
every year but it's zero in 2023 but we just we're just not

1444
01:05:44,389 --> 01:05:47,760
doing the 2014 CIP

1445
01:05:47,760 --> 01:05:51,820
projects and those are bond funded so is that are we saying

1446
01:05:51,820 --> 01:05:52,840
that that debt

1447
01:05:52,840 --> 01:05:55,650
service associated with that is going away or is that being

1448
01:05:55,650 --> 01:05:56,440
paid somewhere

1449
01:05:56,440 --> 01:06:01,099
else the debt service that's associated you know with with

1450
01:06:01,099 --> 01:06:02,599
this payment here

1451
01:06:02,599 --> 01:06:07,159
we're CEOs and some Geos that were issued some time ago so

1452
01:06:07,159 --> 01:06:08,320
so they're in

1453
01:06:08,320 --> 01:06:11,829
the 2014 bond program that is all paid out of the general

1454
01:06:11,829 --> 01:06:13,199
debt service fund and

1455
01:06:13,199 --> 01:06:18,639
and the tax rate currently we left that at zero one of the

1456
01:06:18,639 --> 01:06:19,079
things that we did

1457
01:06:19,079 --> 01:06:23,059
talk with the council briefly about when we discussed the

1458
01:06:23,059 --> 01:06:24,239
use of the channel

1459
01:06:24,239 --> 01:06:28,369
rehab money is the possibility of issuing some limited debt

1460
01:06:28,369 --> 01:06:29,360
in the future

1461
01:06:29,360 --> 01:06:34,079
but I think that goes with better evaluating this operation

1462
01:06:34,079 --> 01:06:34,800
making sure

1463
01:06:34,800 --> 01:06:36,800
that we understand what all the needs are out there

1464
01:06:36,800 --> 01:06:39,039
certainly if there's an

1465
01:06:39,039 --> 01:06:42,199
opportunity to revenue fund something we would obviously

1466
01:06:42,199 --> 01:06:43,199
would prefer that

1467
01:06:43,199 --> 01:06:46,659
especially for some of these smaller projects right but but

1468
01:06:46,659 --> 01:06:48,039
again it's

1469
01:06:48,039 --> 01:06:51,619
currently there are no plans to issue an additional debt

1470
01:06:51,619 --> 01:06:53,679
and so we just left that

1471
01:06:53,679 --> 01:06:58,880
at zero for now okay so it's these are larger projects that

1472
01:06:58,880 --> 01:06:59,679
really fall under a

1473
01:06:59,679 --> 01:07:04,239
general obligation traditionally that's been traditionally

1474
01:07:04,239 --> 01:07:05,199
that's been that's

1475
01:07:05,199 --> 01:07:08,480
been the case simply because of the magnitude of those

1476
01:07:08,480 --> 01:07:09,880
projects from a from

1477
01:07:09,880 --> 01:07:15,389
a dollar perspective all right very good well mr. chairman

1478
01:07:15,389 --> 01:07:16,280
and members of the

1479
01:07:16,280 --> 01:07:19,530
board that that concludes our our presentation for for the

1480
01:07:19,530 --> 01:07:21,000
wastewater fund

1481
01:07:21,000 --> 01:07:25,710
that includes drainage as I mentioned what what we are

1482
01:07:25,710 --> 01:07:27,440
seeking from you is

1483
01:07:27,440 --> 01:07:31,659
direction you know our recommendation again is is a five

1484
01:07:31,659 --> 01:07:33,519
percent decrease in

1485
01:07:33,519 --> 01:07:37,440
rates with no increases in the future at least planned

1486
01:07:37,440 --> 01:07:39,079
currently addition to that

1487
01:07:39,079 --> 01:07:44,900
we are recommending no changes to the drainage fee the the

1488
01:07:44,900 --> 01:07:45,880
next steps for us

1489
01:07:45,880 --> 01:07:50,320
would be to come back to the board sometime in July to have

1490
01:07:50,320 --> 01:07:51,280
you formally

1491
01:07:51,280 --> 01:07:56,000
approve this budget and also the corresponding rate ordin

1492
01:07:56,000 --> 01:07:57,039
ances that will

1493
01:07:57,039 --> 01:08:02,440
detail out what the actual rate impacts would be of this

1494
01:08:02,440 --> 01:08:03,519
this forecast or this

1495
01:08:03,519 --> 01:08:06,289
this budget so if you have any questions I'll be happy to

1496
01:08:06,289 --> 01:08:07,719
entertain any questions

1497
01:08:07,719 --> 01:08:12,800
you may have questions I didn't have a question I have more

1498
01:08:12,800 --> 01:08:13,480
of a comment of

1499
01:08:13,480 --> 01:08:19,079
when we were gonna get back to five or two so yeah we know

1500
01:08:19,079 --> 01:08:20,760
that that says five

1501
01:08:20,760 --> 01:08:25,579
I'm still nervous about five versus two percent but I I

1502
01:08:25,579 --> 01:08:27,199
trust you've run the

1503
01:08:27,199 --> 01:08:30,640
numbers and like you said you're gonna come back next year

1504
01:08:30,640 --> 01:08:31,640
I hope it doesn't

1505
01:08:31,640 --> 01:08:35,729
swing five percent the next time I don't think it will so I

1506
01:08:35,729 --> 01:08:37,840
don't think we keep

1507
01:08:37,840 --> 01:08:41,859
our customers money any longer than we should so I'll

1508
01:08:41,859 --> 01:08:43,880
support the five percent

1509
01:08:43,880 --> 01:08:47,279
other comments

1510
01:08:51,720 --> 01:08:53,619
I think I said before I'm all for any kind of any kind of

1511
01:08:53,619 --> 01:08:55,880
rate reduction we

1512
01:08:55,880 --> 01:08:58,619
could do and if we could do five percent still maintain the

1513
01:08:58,619 --> 01:08:59,600
integrity of the

1514
01:08:59,600 --> 01:09:06,930
wastewater system where we're we're not any anything we've

1515
01:09:06,930 --> 01:09:10,319
done from a compliance

1516
01:09:10,600 --> 01:09:14,289
accomplishment over the last few years you I don't want to

1517
01:09:14,289 --> 01:09:15,359
interrupt the

1518
01:09:15,359 --> 01:09:20,229
program and you've already told me we weren't so so as long

1519
01:09:20,229 --> 01:09:24,920
as that's is that I

1520
01:09:24,920 --> 01:09:30,819
you know again I think it's a it's a healthy fun we made

1521
01:09:30,819 --> 01:09:32,319
some arrangements to

1522
01:09:32,319 --> 01:09:38,550
take some of the operating expense out of wastewater and so

1523
01:09:38,550 --> 01:09:40,399
that that puts our

1524
01:09:40,399 --> 01:09:44,840
puts our reserves at a better really a high level I think

1525
01:09:44,840 --> 01:09:46,399
based upon what it

1526
01:09:46,399 --> 01:09:51,729
looks like going forward and we're freeing up room for debt

1527
01:09:51,729 --> 01:09:52,560
service if we

1528
01:09:52,560 --> 01:09:56,500
need to do something in the future important same very

1529
01:09:56,500 --> 01:09:57,079
similar to what we

1530
01:09:57,079 --> 01:10:03,310
get on the on the water side yes ma'am right okay all right

1531
01:10:03,310 --> 01:10:06,520
thank you Tony and

1532
01:10:06,520 --> 01:10:16,319
Daniel and Daniel and Daniel thank you okay next item we

1533
01:10:16,319 --> 01:10:16,920
have in the work

1534
01:10:16,920 --> 01:10:20,569
session is to receive a report hold a discussion and give

1535
01:10:20,569 --> 01:10:21,760
staff direction

1536
01:10:21,760 --> 01:10:25,939
regarding the Denton municipal electric fiscal year 2018-19

1537
01:10:25,939 --> 01:10:27,000
operating budget

1538
01:10:27,000 --> 01:10:32,170
capital improvement program and renewable resource plan so

1539
01:10:32,170 --> 01:10:33,720
mr. chairman

1540
01:10:33,720 --> 01:10:37,600
members of the board again Tony pointed director finance

1541
01:10:37,600 --> 01:10:39,039
again very similar

1542
01:10:39,039 --> 01:10:47,569
presentation but quite a bit more slides we we we do have

1543
01:10:47,569 --> 01:10:48,520
George Morrow our

1544
01:10:48,520 --> 01:10:51,750
general manager will be is here and we'll be walking

1545
01:10:51,750 --> 01:10:53,000
through a number of

1546
01:10:53,000 --> 01:10:56,880
sections of this slide he and I did have to arm wrestle a

1547
01:10:56,880 --> 01:10:57,760
little bit for you know

1548
01:10:57,760 --> 01:11:01,189
for all the good slides I told him next year will be

1549
01:11:01,189 --> 01:11:04,039
different but we also have

1550
01:11:04,039 --> 01:11:08,720
some consultants here from ERC that are also gonna assist

1551
01:11:08,720 --> 01:11:10,159
us in walking through

1552
01:11:10,159 --> 01:11:13,920
the deck performer as well we've asked him to come in and

1553
01:11:13,920 --> 01:11:16,399
and evaluate that to

1554
01:11:16,399 --> 01:11:19,890
provide at least a second pair of eyes not just for for the

1555
01:11:19,890 --> 01:11:21,039
board but also the

1556
01:11:21,039 --> 01:11:27,060
council and certainly our citizens so just really quickly

1557
01:11:27,060 --> 01:11:29,119
want to you may have

1558
01:11:29,119 --> 01:11:31,710
a lot of questions on some of these items so I wanted to

1559
01:11:31,710 --> 01:11:32,600
let you know just

1560
01:11:32,600 --> 01:11:34,869
right here on slide one that they're coming up right and so

1561
01:11:34,869 --> 01:11:35,479
I just want to

1562
01:11:35,479 --> 01:11:38,100
give you kind of the order certainly if we need to get out

1563
01:11:38,100 --> 01:11:39,039
of order I will be

1564
01:11:39,039 --> 01:11:42,800
happy to do that I will be going through the load forecasts

1565
01:11:42,800 --> 01:11:45,479
for this fund also

1566
01:11:45,479 --> 01:11:49,439
with our financial assumptions we did have some requests

1567
01:11:49,439 --> 01:11:51,119
regarding commercial

1568
01:11:51,119 --> 01:11:53,859
and residential rates and how those compare and George will

1569
01:11:53,859 --> 01:11:54,560
come up here and

1570
01:11:54,560 --> 01:11:58,760
and talk through that there's also some some

1571
01:11:58,760 --> 01:11:59,640
recommendations that we're gonna

1572
01:11:59,640 --> 01:12:04,220
be making to the board to the council regarding the ECA and

1573
01:12:04,220 --> 01:12:05,640
and also the

1574
01:12:05,640 --> 01:12:09,359
related to that is the the TCRF the transmission cost

1575
01:12:09,359 --> 01:12:10,960
recovery factor that

1576
01:12:10,960 --> 01:12:14,409
we'll be discussing with you again we'll go through the

1577
01:12:14,409 --> 01:12:16,760
financial forecast talk a

1578
01:12:16,760 --> 01:12:20,630
little bit about about the debt for this fund where the

1579
01:12:20,630 --> 01:12:22,880
fund was as of 930 17 and

1580
01:12:22,880 --> 01:12:27,829
where we anticipate it would be at the end of 19 930 19

1581
01:12:27,829 --> 01:12:28,560
based on the

1582
01:12:28,560 --> 01:12:32,529
recommendations that we're making to you today George will

1583
01:12:32,529 --> 01:12:33,720
then come back up here

1584
01:12:33,720 --> 01:12:37,109
talk to you a little bit about purchase power some of the

1585
01:12:37,109 --> 01:12:38,359
changes in that that

1586
01:12:38,359 --> 01:12:42,340
are frankly driving some of this forecast we'll talk to you

1587
01:12:42,340 --> 01:12:43,119
as well about

1588
01:12:43,119 --> 01:12:47,680
the the deck performer that's the debt energy center and

1589
01:12:47,680 --> 01:12:49,039
then finally George

1590
01:12:49,039 --> 01:12:52,329
will go through the departmental presentation section

1591
01:12:52,329 --> 01:12:53,199
including the

1592
01:12:53,199 --> 01:12:58,060
capital improvement program so just very quickly here for

1593
01:12:58,060 --> 01:13:00,359
you again our customers

1594
01:13:00,359 --> 01:13:06,600
by class we see about a 2% increase in our in our customers

1595
01:13:06,600 --> 01:13:07,039
there's been

1596
01:13:07,039 --> 01:13:10,640
certainly some spikes that have been slowed down a little

1597
01:13:10,640 --> 01:13:11,840
bit because of the

1598
01:13:11,840 --> 01:13:14,850
recession and some of the slows down in the housing market

1599
01:13:14,850 --> 01:13:15,920
as that continues to

1600
01:13:15,920 --> 01:13:20,720
to increase we're likely to see continued increases in our

1601
01:13:20,720 --> 01:13:23,520
customer base

1602
01:13:23,520 --> 01:13:32,659
just quickly we are projecting 361 megawatt peak for 2019 I

1603
01:13:32,659 --> 01:13:33,279
think you're

1604
01:13:33,279 --> 01:13:35,630
familiar with some of the some of the articles and some of

1605
01:13:35,630 --> 01:13:36,359
the news stories

1606
01:13:36,359 --> 01:13:38,970
about what's anticipated for the summer this year so we are

1607
01:13:38,970 --> 01:13:39,840
ramping up and

1608
01:13:39,840 --> 01:13:45,500
anticipating some heavy usage of electricity this this

1609
01:13:45,500 --> 01:13:47,760
coming year some

1610
01:13:47,760 --> 01:13:50,130
of the financial assumptions and and again we'll go through

1611
01:13:50,130 --> 01:13:50,640
some of the

1612
01:13:50,640 --> 01:13:55,159
details we part of part of this this forecast that does

1613
01:13:55,159 --> 01:13:57,239
include the payoff of

1614
01:13:57,239 --> 01:14:03,470
28.6 million dollars of what's called the scrubber debt it

1615
01:14:03,470 --> 01:14:04,079
was debt that we

1616
01:14:04,079 --> 01:14:10,020
issued back in 2010 that's related to the TMPA facility if

1617
01:14:10,020 --> 01:14:12,159
approved by both

1618
01:14:12,159 --> 01:14:15,649
the board and the council we would come back sometime in

1619
01:14:15,649 --> 01:14:17,880
February to call that

1620
01:14:17,880 --> 01:14:21,289
debt provide notice to to investors so that they're aware

1621
01:14:21,289 --> 01:14:22,319
that we'll be calling

1622
01:14:22,319 --> 01:14:31,100
that debt and then cash fund that in in the first part of

1623
01:14:31,100 --> 01:14:33,039
2019 we will send that

1624
01:14:33,039 --> 01:14:36,659
cash payment to to our paying agent who then will disperse

1625
01:14:36,659 --> 01:14:37,640
that out to the

1626
01:14:37,640 --> 01:14:40,659
investors and then that debt will will be paid off we are

1627
01:14:40,659 --> 01:14:41,760
recommending no

1628
01:14:41,760 --> 01:14:47,430
changes to the base rates for for this fund there is a

1629
01:14:47,430 --> 01:14:49,479
suspension of the TCRF

1630
01:14:49,479 --> 01:14:53,350
that is driving what our customers will see as far as their

1631
01:14:53,350 --> 01:14:54,600
rates and a decrease

1632
01:14:54,600 --> 01:14:59,529
the ECA will be maintained at the current level and again

1633
01:14:59,529 --> 01:15:00,560
that is the

1634
01:15:00,560 --> 01:15:05,569
level that we reduced last year if you recall and the so we

1635
01:15:05,569 --> 01:15:07,279
are recommending

1636
01:15:07,279 --> 01:15:10,670
to maintain that particular level of the ECA there is an

1637
01:15:10,670 --> 01:15:12,479
update to these ECA

1638
01:15:12,479 --> 01:15:19,979
ordinance that will include the net expenses of the deck as

1639
01:15:19,979 --> 01:15:21,279
part of the

1640
01:15:21,279 --> 01:15:23,890
purchase power portfolio for the city and George will come

1641
01:15:23,890 --> 01:15:24,680
up here and talk a

1642
01:15:24,680 --> 01:15:29,560
little bit about that as well as ERC reduced purchase power

1643
01:15:29,560 --> 01:15:30,800
cost we're seeing

1644
01:15:30,800 --> 01:15:33,920
that as a result of some of our more recent contracts for

1645
01:15:33,920 --> 01:15:34,840
solar and wind

1646
01:15:34,840 --> 01:15:39,819
energy and so those are reflective here and then one of the

1647
01:15:39,819 --> 01:15:41,000
major items is a

1648
01:15:41,000 --> 01:15:47,039
reduction in the overall CIP program for for the Electric

1649
01:15:47,039 --> 01:15:48,880
Department we'll talk

1650
01:15:48,880 --> 01:15:52,050
to you in conjunction tonight there'll be a consideration

1651
01:15:52,050 --> 01:15:53,239
for a budget amendment

1652
01:15:53,239 --> 01:15:57,880
seeking authority to draw down 34 million dollars to fund a

1653
01:15:57,880 --> 01:15:58,600
34 million

1654
01:15:58,600 --> 01:16:02,800
dollar capital improvement program in in the current year

1655
01:16:02,800 --> 01:16:05,479
that includes also 10

1656
01:16:05,479 --> 01:16:08,880
million dollars of excess revenue bonds to the system

1657
01:16:08,880 --> 01:16:11,479
revenue bonds from the deck

1658
01:16:11,479 --> 01:16:15,050
facility that have that we do not anticipate using those

1659
01:16:15,050 --> 01:16:15,880
for the deck

1660
01:16:15,880 --> 01:16:19,949
facility that we're planning to use use for other electric

1661
01:16:19,949 --> 01:16:21,560
system improvements

1662
01:16:21,560 --> 01:16:25,720
that's part of your budget amendment for your consideration

1663
01:16:25,720 --> 01:16:26,640
later tonight and

1664
01:16:26,640 --> 01:16:32,359
part of this forecast that is a reduction of a plan 54

1665
01:16:32,359 --> 01:16:33,960
million dollar CEO

1666
01:16:33,960 --> 01:16:38,399
issuance that was originally planned for for this fund

1667
01:16:38,399 --> 01:16:39,880
again now we plan to

1668
01:16:39,880 --> 01:16:43,319
utilize 34 million dollars George will talk a little bit

1669
01:16:43,319 --> 01:16:44,199
about that when he

1670
01:16:44,199 --> 01:16:48,399
comes up here and then to debt fund portion of the

1671
01:16:48,399 --> 01:16:51,399
transmission system going

1672
01:16:51,399 --> 01:16:56,949
forward but to continue to draw down rate stabilization to

1673
01:16:56,949 --> 01:16:57,880
cash fund the

1674
01:16:57,880 --> 01:17:03,319
remainder of the CIP and so there'll be a huge decrease in

1675
01:17:03,319 --> 01:17:05,039
the planned debt

1676
01:17:05,039 --> 01:17:09,149
issuances for this fund compared to what we presented to

1677
01:17:09,149 --> 01:17:13,159
you last year so how are

1678
01:17:13,159 --> 01:17:18,819
we able to do this so for 2018-19 what's included is a

1679
01:17:18,819 --> 01:17:20,340
decrease of about 33

1680
01:17:20,340 --> 01:17:24,779
million dollars in in purchase power costs some of those

1681
01:17:24,779 --> 01:17:26,640
are attributable to

1682
01:17:26,640 --> 01:17:32,399
a a projected net income to the deck facility about 20

1683
01:17:32,399 --> 01:17:34,640
million dollars part

1684
01:17:34,640 --> 01:17:37,119
of it is related to the fact that we are still currently

1685
01:17:37,119 --> 01:17:38,239
not paying debt on that

1686
01:17:38,239 --> 01:17:40,760
facility George again I'll walk through that

1687
01:17:40,760 --> 01:17:47,500
performer with you and also a reduced TMPA related expenses

1688
01:17:47,500 --> 01:17:48,600
about 22 million

1689
01:17:48,600 --> 01:17:53,579
dollars we have a reduced CIP program that carries forward

1690
01:17:53,579 --> 01:17:55,000
not just in 18-19

1691
01:17:55,000 --> 01:18:01,439
but the five years of this program but for 2018-19 we are

1692
01:18:01,439 --> 01:18:02,760
projecting a decrease

1693
01:18:02,760 --> 01:18:07,649
from 45 million dollars to about 23 million dollars in that

1694
01:18:07,649 --> 01:18:09,680
program and then

1695
01:18:09,680 --> 01:18:12,920
finally as I mentioned just a few minutes ago we part of

1696
01:18:12,920 --> 01:18:14,199
the recommendation

1697
01:18:14,199 --> 01:18:21,029
is to fund cash fund 24 million dollars in in currency IP

1698
01:18:21,029 --> 01:18:24,560
we've not included any

1699
01:18:24,560 --> 01:18:27,560
of this and the CEO issuance at the council will consider

1700
01:18:27,560 --> 01:18:29,359
tomorrow but we

1701
01:18:29,359 --> 01:18:32,779
also recommend utilizing about 10 million dollars that we

1702
01:18:32,779 --> 01:18:33,600
're currently

1703
01:18:33,600 --> 01:18:39,199
projecting in savings from the deck operation we issued

1704
01:18:39,199 --> 01:18:40,399
those utility system

1705
01:18:40,399 --> 01:18:44,229
revenue bonds that are eligible and not just for the deck

1706
01:18:44,229 --> 01:18:45,800
operation but for any

1707
01:18:45,800 --> 01:18:50,590
other utility system electric system projects as we're

1708
01:18:50,590 --> 01:18:51,920
planning the

1709
01:18:51,920 --> 01:18:57,060
recommendations to shift those to fund the normal CIP for

1710
01:18:57,060 --> 01:18:59,920
this fund some of the

1711
01:18:59,920 --> 01:19:04,659
future emphasis is you know continued management of the

1712
01:19:04,659 --> 01:19:05,159
transmission

1713
01:19:05,159 --> 01:19:08,689
distribution system expansion program we'll talk to you a

1714
01:19:08,689 --> 01:19:09,920
little bit further

1715
01:19:09,920 --> 01:19:15,430
about that O&M of the deck energy center is certainly

1716
01:19:15,430 --> 01:19:15,920
something that will

1717
01:19:15,920 --> 01:19:19,310
continue to evaluate we are staffing up to run that

1718
01:19:19,310 --> 01:19:21,920
facility update the energy

1719
01:19:21,920 --> 01:19:27,430
risk management policy that's phase two of that process

1720
01:19:27,430 --> 01:19:29,439
also to bid and acquire

1721
01:19:29,439 --> 01:19:34,079
modern a modern energy trading and risk management system

1722
01:19:34,079 --> 01:19:38,000
this ETRM and then the

1723
01:19:38,000 --> 01:19:41,409
next item is the acquisition of new renewable energy

1724
01:19:41,409 --> 01:19:42,800
products to meet the

1725
01:19:42,800 --> 01:19:49,069
100% renewable goal that you're very familiar with continue

1726
01:19:49,069 --> 01:19:50,399
to to monitor and

1727
01:19:50,399 --> 01:19:54,989
enhance the reliability of our system including circuit swe

1728
01:19:54,989 --> 01:19:56,600
eps that's done by

1729
01:19:56,600 --> 01:20:01,039
our DME distribution crews and then to manage the overall

1730
01:20:01,039 --> 01:20:01,960
power supply

1731
01:20:01,960 --> 01:20:08,789
portfolio you know under constraints of course by ERCOT so

1732
01:20:08,789 --> 01:20:11,399
what you have up here

1733
01:20:11,399 --> 01:20:15,550
is what the impact would be of what we're proposing in this

1734
01:20:15,550 --> 01:20:17,279
forecast the DME

1735
01:20:17,279 --> 01:20:21,840
currently for a residential customer for that utilizes

1736
01:20:21,840 --> 01:20:23,399
about twenty twelve hundred

1737
01:20:23,399 --> 01:20:31,069
kilowatt hours pays about $129.26 under this recommendation

1738
01:20:31,069 --> 01:20:31,720
that

1739
01:20:31,720 --> 01:20:40,039
would decrease to $124.24 a month about 3.5% decrease in

1740
01:20:40,039 --> 01:20:41,159
your backup we did not

1741
01:20:41,159 --> 01:20:44,760
include the city of Georgetown we did have a request to

1742
01:20:44,760 --> 01:20:45,880
include that so that's

1743
01:20:45,880 --> 01:20:49,800
here now and certainly city of Georgetown is to the right

1744
01:20:49,800 --> 01:20:50,439
even of our

1745
01:20:50,439 --> 01:20:57,170
current rates certainly going forward yes ma'am so that

1746
01:20:57,170 --> 01:20:58,520
there's no anticipated

1747
01:20:58,520 --> 01:21:04,189
base rate increase but what about can you say speak to the

1748
01:21:04,189 --> 01:21:05,720
any anticipated

1749
01:21:05,720 --> 01:21:09,600
changes in cost of service adjustment I realize that you

1750
01:21:09,600 --> 01:21:10,920
that that can't be

1751
01:21:10,920 --> 01:21:17,699
predicted that far out so so that is part of our one of our

1752
01:21:17,699 --> 01:21:18,359
other slides and

1753
01:21:18,359 --> 01:21:23,119
George will talk about that there will be an update to that

1754
01:21:23,119 --> 01:21:26,119
so this gives you

1755
01:21:26,119 --> 01:21:32,359
you know this was this was as of May 3rd where DME

1756
01:21:32,359 --> 01:21:34,960
currently is is this this

1757
01:21:34,960 --> 01:21:39,850
green line just want to note that but you know about 26

1758
01:21:39,850 --> 01:21:41,439
entities five of those

1759
01:21:41,439 --> 01:21:45,640
being cities certainly fall to the right of where our

1760
01:21:45,640 --> 01:21:47,640
current rates are certainly

1761
01:21:47,640 --> 01:21:51,289
if we move forward with the with the with the current

1762
01:21:51,289 --> 01:21:52,920
recommendation that

1763
01:21:52,920 --> 01:21:56,159
would add on about another seven that would be to the right

1764
01:21:56,159 --> 01:21:56,960
of this and that's

1765
01:21:56,960 --> 01:22:03,770
based on the current rates that are published out there yes

1766
01:22:03,770 --> 01:22:06,760
ma'am does that

1767
01:22:06,760 --> 01:22:12,579
include commercial and residential rates is that lumping

1768
01:22:12,579 --> 01:22:13,960
those together this is

1769
01:22:13,960 --> 01:22:17,680
just residential yes correct but there but there would also

1770
01:22:17,680 --> 01:22:18,479
be an impact on

1771
01:22:18,479 --> 01:22:21,220
non-commercial rates yes ma'am so I asked George to come up

1772
01:22:21,220 --> 01:22:21,680
here and kind of

1773
01:22:21,680 --> 01:22:28,119
walk you through kind of the next few slides Tony thank you

1774
01:22:28,119 --> 01:22:29,479
good evening

1775
01:22:29,479 --> 01:22:32,270
George moral general manager of DME I just want to make a

1776
01:22:32,270 --> 01:22:33,319
few comments about

1777
01:22:33,319 --> 01:22:36,750
the cost of service and the rate design we're not making

1778
01:22:36,750 --> 01:22:38,359
any recommendations at

1779
01:22:38,359 --> 01:22:41,939
this point to change anything on the rate design once you

1780
01:22:41,939 --> 01:22:43,279
change some things

1781
01:22:43,279 --> 01:22:46,279
on the rate design then what you run into is some folks

1782
01:22:46,279 --> 01:22:47,399
that do very well I

1783
01:22:47,399 --> 01:22:50,020
call them winners and then you'll have some losers it will

1784
01:22:50,020 --> 01:22:50,960
have a zero sum

1785
01:22:50,960 --> 01:22:54,170
revenue requirement but when you would start playing and

1786
01:22:54,170 --> 01:22:55,159
moving the rates

1787
01:22:55,159 --> 01:22:57,600
around then we're gonna have some folks that will be

1788
01:22:57,600 --> 01:22:58,439
impacted pretty

1789
01:22:58,439 --> 01:23:02,239
significantly I looked at the 2013 cost of service study

1790
01:23:02,239 --> 01:23:05,800
and we have a draft or

1791
01:23:05,800 --> 01:23:09,649
early stage 2018 cost of service study and what I found is

1792
01:23:09,649 --> 01:23:10,680
what I mentioned in

1793
01:23:10,680 --> 01:23:13,800
that second bullet is that the residential customers are

1794
01:23:13,800 --> 01:23:14,479
paying less

1795
01:23:14,479 --> 01:23:17,300
than what you would call their full cost of service their

1796
01:23:17,300 --> 01:23:18,199
mathematically

1797
01:23:18,199 --> 01:23:21,319
calculated cost of service be honest with you that's no

1798
01:23:21,319 --> 01:23:21,880
different than any

1799
01:23:21,880 --> 01:23:25,270
other place I've been I've been with quite a few municipal

1800
01:23:25,270 --> 01:23:26,239
utilities and

1801
01:23:26,239 --> 01:23:30,029
especially municipal utilities that tends to be we we tend

1802
01:23:30,029 --> 01:23:30,680
to be sympathetic

1803
01:23:30,680 --> 01:23:34,510
to the residential customers and and they tend to get

1804
01:23:34,510 --> 01:23:36,039
favored in the in the

1805
01:23:36,039 --> 01:23:39,449
rate design process and of course if they're getting

1806
01:23:39,449 --> 01:23:40,199
favored that means the

1807
01:23:40,199 --> 01:23:42,760
commercial are paying probably a little bit more than the

1808
01:23:42,760 --> 01:23:44,199
cost of service so both

1809
01:23:44,199 --> 01:23:47,590
of those studies it seems that gap has closed a little bit

1810
01:23:47,590 --> 01:23:48,680
and how you do that

1811
01:23:48,680 --> 01:23:52,189
cost of service is you're looking at the contributions of

1812
01:23:52,189 --> 01:23:53,039
the of the customer

1813
01:23:53,039 --> 01:23:55,779
profiles when they use their electricity how they use it

1814
01:23:55,779 --> 01:23:57,399
and the costs that we

1815
01:23:57,399 --> 01:24:03,060
incur during those different time periods and the and and

1816
01:24:03,060 --> 01:24:04,079
and trying to do

1817
01:24:04,079 --> 01:24:06,670
an analysis of what what's a fair share for the residential

1818
01:24:06,670 --> 01:24:07,399
customers and

1819
01:24:07,399 --> 01:24:11,119
commercial so that's what I had to offer today in this

1820
01:24:11,119 --> 01:24:13,239
particular slide we do

1821
01:24:13,239 --> 01:24:17,680
have a in the wintertime we do have this declining block

1822
01:24:17,680 --> 01:24:19,420
rate once you use so

1823
01:24:19,420 --> 01:24:23,000
much in the wintertime you'll get a break that in part is

1824
01:24:23,000 --> 01:24:24,359
to recognize that

1825
01:24:24,359 --> 01:24:27,579
we have some residential customers that do use electric

1826
01:24:27,579 --> 01:24:29,319
heat and they can be

1827
01:24:29,319 --> 01:24:32,989
significantly impacted in the wintertime without that kind

1828
01:24:32,989 --> 01:24:34,600
of a cost break and so

1829
01:24:34,600 --> 01:24:37,600
when we did a survey of an about a dozen utilities out

1830
01:24:37,600 --> 01:24:38,840
there we found it broke

1831
01:24:38,840 --> 01:24:42,479
every which way maybe a third had a rate design similar to

1832
01:24:42,479 --> 01:24:43,439
us where they

1833
01:24:43,439 --> 01:24:46,560
differentiated winter summer and gave a declining block

1834
01:24:46,560 --> 01:24:48,760
discount which is what we

1835
01:24:48,760 --> 01:24:52,069
give to residential customers others had a flat rate you

1836
01:24:52,069 --> 01:24:53,199
know probably goes back

1837
01:24:53,199 --> 01:24:55,529
to what they've been doing for a long time they just

1838
01:24:55,529 --> 01:24:56,359
decided to go that way

1839
01:24:56,359 --> 01:25:00,119
and some have the increasing block rate so as you use more

1840
01:25:00,119 --> 01:25:01,720
electricity your price

1841
01:25:01,720 --> 01:25:09,199
goes up so there's actually no perfect way to do it but our

1842
01:25:09,199 --> 01:25:10,159
customers I think at

1843
01:25:10,159 --> 01:25:12,640
this point are what I'm saying that they're used to our

1844
01:25:12,640 --> 01:25:13,560
rate design and if

1845
01:25:13,560 --> 01:25:18,640
we move it let's say we were to move the residential rates

1846
01:25:18,640 --> 01:25:19,680
up you know that

1847
01:25:19,680 --> 01:25:22,920
would have a significant impact on some parts of that class

1848
01:25:22,920 --> 01:25:28,359
questions so when

1849
01:25:28,359 --> 01:25:32,119
you say that the commercial customers paying more than

1850
01:25:32,119 --> 01:25:33,199
their pure pure share

1851
01:25:33,199 --> 01:25:38,229
versus yes for the cost of service excuse me versus some

1852
01:25:38,229 --> 01:25:39,000
residential

1853
01:25:39,000 --> 01:25:43,649
customers are paying less are these customer commercial

1854
01:25:43,649 --> 01:25:45,000
customers and

1855
01:25:45,000 --> 01:25:51,239
residential customers kind of considered equal in terms of

1856
01:25:51,239 --> 01:25:53,560
their importance as

1857
01:25:53,560 --> 01:25:57,649
customers to DME or our residential customers considered

1858
01:25:57,649 --> 01:25:58,800
more important

1859
01:25:58,800 --> 01:26:02,229
because the residents you know including those residents

1860
01:26:02,229 --> 01:26:03,039
that are you know

1861
01:26:03,039 --> 01:26:07,039
business owners etc because they're the the citizen owners

1862
01:26:07,039 --> 01:26:09,239
of DME or is that not

1863
01:26:09,239 --> 01:26:11,800
factored in it's it just looked at in terms of you know

1864
01:26:11,800 --> 01:26:13,840
share of DME's cost I

1865
01:26:13,840 --> 01:26:16,579
be surprised if that was a factor I think all of our

1866
01:26:16,579 --> 01:26:17,800
customers are important

1867
01:26:17,800 --> 01:26:21,859
to us and rate design is more of an art than a science and

1868
01:26:21,859 --> 01:26:23,359
I think you know back

1869
01:26:23,359 --> 01:26:25,689
when they these rates were designed they've probably been

1870
01:26:25,689 --> 01:26:26,119
this way for a

1871
01:26:26,119 --> 01:26:29,119
long long time that was you know that was the policy at the

1872
01:26:29,119 --> 01:26:29,640
time maybe even

1873
01:26:29,640 --> 01:26:32,380
the cost of service showed these were the appropriate rate

1874
01:26:32,380 --> 01:26:33,159
design at the time

1875
01:26:33,159 --> 01:26:36,600
but it's over time maybe that's that's changed a bit so

1876
01:26:36,600 --> 01:26:37,960
that the residential

1877
01:26:37,960 --> 01:26:40,840
customer rates could be higher based on the cost of service

1878
01:26:40,840 --> 01:26:42,260
that's a policy

1879
01:26:42,260 --> 01:26:45,750
decision we're not making that recommendation and I can

1880
01:26:45,750 --> 01:26:47,319
tell you again

1881
01:26:47,319 --> 01:26:51,100
just celebrated my 40th year in the business we've never

1882
01:26:51,100 --> 01:26:53,239
really gone and try

1883
01:26:53,239 --> 01:26:55,979
to do anything dramatic with respect to rate design because

1884
01:26:55,979 --> 01:26:57,119
of what I said folks

1885
01:26:57,119 --> 01:27:00,720
get used to there's certain paying a certain amount of

1886
01:27:00,720 --> 01:27:02,199
their bill and once we

1887
01:27:02,199 --> 01:27:05,880
you know favor one one direction that it in a zero-sum game

1888
01:27:05,880 --> 01:27:07,119
then it gets made up

1889
01:27:07,119 --> 01:27:10,119
someplace else well so that's the trickiness of playing

1890
01:27:10,119 --> 01:27:10,520
with the rate

1891
01:27:10,520 --> 01:27:16,359
design yeah I was thinking more you know in terms of making

1892
01:27:16,359 --> 01:27:18,359
the in the future you

1893
01:27:18,359 --> 01:27:21,840
know as we've we've talked about recently when looking to

1894
01:27:21,840 --> 01:27:22,960
the the study

1895
01:27:22,960 --> 01:27:25,699
that's going to be done of the whole I forget the name of

1896
01:27:25,699 --> 01:27:26,800
the study but the you

1897
01:27:26,800 --> 01:27:30,420
know financial structure of DME and for our various

1898
01:27:30,420 --> 01:27:32,560
utilities looking at that

1899
01:27:32,560 --> 01:27:37,000
you know the cost effectiveness and management and risk and

1900
01:27:37,000 --> 01:27:38,359
so on looking

1901
01:27:38,359 --> 01:27:42,020
into the possibility of reversing the rate structure so

1902
01:27:42,020 --> 01:27:43,439
that the commercial

1903
01:27:43,439 --> 01:27:47,000
users have a have a higher rate versus residential users

1904
01:27:47,000 --> 01:27:48,279
having a lower rate

1905
01:27:48,279 --> 01:27:52,460
like what we have in water because even even if it measures

1906
01:27:52,460 --> 01:27:53,600
and I mean that

1907
01:27:53,600 --> 01:27:56,359
makes sense to me because the commercial users use more and

1908
01:27:56,359 --> 01:27:56,640
that

1909
01:27:56,640 --> 01:28:01,710
residential users use less but it would certainly encourage

1910
01:28:01,710 --> 01:28:03,399
conservation and be

1911
01:28:03,399 --> 01:28:07,569
be better for our residential customers although of course

1912
01:28:07,569 --> 01:28:08,680
like you said you

1913
01:28:08,680 --> 01:28:12,069
know then the commercial customers would be would end up

1914
01:28:12,069 --> 01:28:14,159
paying more so on a pure

1915
01:28:14,159 --> 01:28:17,920
cents per kilowatt hour basis that commercial customers pay

1916
01:28:17,920 --> 01:28:18,800
less but they

1917
01:28:18,800 --> 01:28:21,119
still pay that's what you're saying I just for the

1918
01:28:21,119 --> 01:28:22,239
everybody so but their

1919
01:28:22,239 --> 01:28:26,359
cost of service they could actually pay even less than that

1920
01:28:26,359 --> 01:28:29,279
so based on their

1921
01:28:29,279 --> 01:28:32,279
their usage profile when they're using how much they use

1922
01:28:32,279 --> 01:28:33,119
they tend to have

1923
01:28:33,119 --> 01:28:36,270
higher load factors or capacity factors they tend to use

1924
01:28:36,270 --> 01:28:37,560
power you know during

1925
01:28:37,560 --> 01:28:40,560
times when it's less expensive so they get that break and

1926
01:28:40,560 --> 01:28:41,439
also what you mentioned

1927
01:28:41,439 --> 01:28:46,479
economies of scale so yes you know I think when you when

1928
01:28:46,479 --> 01:28:47,720
you start looking at

1929
01:28:47,720 --> 01:28:52,760
cost of service there's so many things that go into it that

1930
01:28:52,760 --> 01:28:54,279
like you say it

1931
01:28:54,279 --> 01:28:57,760
could be the time the time of the day that is being used it

1932
01:28:57,760 --> 01:28:58,880
could just be the

1933
01:28:58,880 --> 01:29:02,840
sheer volume that there that people use commercial versus

1934
01:29:02,840 --> 01:29:04,520
residential that

1935
01:29:04,520 --> 01:29:10,069
drives down the cost per delivery of a kilowatt hour not a

1936
01:29:10,069 --> 01:29:11,359
pure cost

1937
01:29:11,359 --> 01:29:18,579
but cost of like like you say the pure share of the cost

1938
01:29:18,579 --> 01:29:19,680
which includes all

1939
01:29:19,680 --> 01:29:24,300
fixed cost infrastructure and all that so that's exactly

1940
01:29:24,300 --> 01:29:26,119
correct thank you and

1941
01:29:26,119 --> 01:29:28,970
it is more of an art than a science it is an art and it's

1942
01:29:28,970 --> 01:29:30,039
you know it's it can

1943
01:29:30,039 --> 01:29:35,199
be local desires you know you can provide that input to us

1944
01:29:35,199 --> 01:29:35,960
and the council

1945
01:29:35,960 --> 01:29:38,550
can provide that input and and we can you know look at

1946
01:29:38,550 --> 01:29:39,720
other scenarios if that

1947
01:29:39,720 --> 01:29:43,109
was important if that accomplished something that the board

1948
01:29:43,109 --> 01:29:43,800
or the council

1949
01:29:43,800 --> 01:29:47,189
wanted to come now you said the gap is closing so that is

1950
01:29:47,189 --> 01:29:48,079
something that we can

1951
01:29:48,079 --> 01:29:51,520
look at in the future is if that's the policy that we want

1952
01:29:51,520 --> 01:29:52,479
to get that gap

1953
01:29:52,479 --> 01:29:55,609
closer we can do that but you would never do that in one

1954
01:29:55,609 --> 01:29:56,720
year you would do

1955
01:29:56,720 --> 01:30:01,520
that over time that would be because the impact is just too

1956
01:30:01,520 --> 01:30:04,680
much thank you so we

1957
01:30:04,680 --> 01:30:09,710
we do a cost of service analysis every five years and the

1958
01:30:09,710 --> 01:30:11,000
18 do we know when

1959
01:30:11,000 --> 01:30:14,210
that's going to be I'd say we have something in a couple of

1960
01:30:14,210 --> 01:30:16,960
months okay we

1961
01:30:16,960 --> 01:30:19,699
have some draft results and preliminary results we're kind

1962
01:30:19,699 --> 01:30:20,960
of vetting through it

1963
01:30:20,960 --> 01:30:26,520
making sure yeah it makes less so I had one other slide

1964
01:30:26,520 --> 01:30:27,439
that I'm going to talk

1965
01:30:27,439 --> 01:30:30,319
about here I think I'll turn it back over to Tony for a

1966
01:30:30,319 --> 01:30:32,399
minute so we have an

1967
01:30:32,399 --> 01:30:36,880
ECA energy cost adjustment every place I've been has had

1968
01:30:36,880 --> 01:30:37,439
energy cost

1969
01:30:37,439 --> 01:30:40,579
adjustments because of the nature of power costs they're

1970
01:30:40,579 --> 01:30:41,760
extremely volatile

1971
01:30:41,760 --> 01:30:45,359
and the energy cost adjustment makes sure customers pay no

1972
01:30:45,359 --> 01:30:47,079
less nor any more

1973
01:30:47,079 --> 01:30:51,939
than our actual cost of power so when we looked at that

1974
01:30:51,939 --> 01:30:53,439
closely in conjunction

1975
01:30:53,439 --> 01:30:56,300
with this budget we noticed it did not really reference a

1976
01:30:56,300 --> 01:30:57,399
project like the deck

1977
01:30:57,399 --> 01:31:01,319
the debt and energy center didn't include you know clearly

1978
01:31:01,319 --> 01:31:02,319
that deck debt

1979
01:31:02,319 --> 01:31:06,770
and operating expenses so we'd like to come back at a later

1980
01:31:06,770 --> 01:31:08,119
date update that

1981
01:31:08,119 --> 01:31:14,899
rate schedule that would include the deck and and reaffirm

1982
01:31:14,899 --> 01:31:15,840
I think our

1983
01:31:15,840 --> 01:31:19,159
desire that we're going to look at that on a regular basis

1984
01:31:19,159 --> 01:31:21,039
quarterly and to the

1985
01:31:21,039 --> 01:31:24,420
extent costs go down see if we can share that on a

1986
01:31:24,420 --> 01:31:26,399
quarterly basis if the cost

1987
01:31:26,399 --> 01:31:30,090
go up and we need to go the other direction so all of that

1988
01:31:30,090 --> 01:31:31,000
what I remember

1989
01:31:31,000 --> 01:31:33,489
from my time in designing I've designed a couple of these

1990
01:31:33,489 --> 01:31:34,960
in places I've been the

1991
01:31:34,960 --> 01:31:38,359
rating agencies require these basically they love them

1992
01:31:38,359 --> 01:31:39,399
especially for municipal

1993
01:31:39,399 --> 01:31:43,250
utilities because of the volatility again of that purchase

1994
01:31:43,250 --> 01:31:44,520
power market they

1995
01:31:44,520 --> 01:31:47,659
so it's important that we have one but it's important also

1996
01:31:47,659 --> 01:31:48,720
that we operate it

1997
01:31:48,720 --> 01:31:52,340
and I've been talking to folks here about that operated as

1998
01:31:52,340 --> 01:31:53,399
if it's you know

1999
01:31:53,399 --> 01:31:57,270
if it goes up it goes up if it goes down it goes down and

2000
01:31:57,270 --> 01:31:58,840
and I think that in the

2001
01:31:58,840 --> 01:32:02,609
long run that's how we're planning to operate the ECA there

2002
01:32:02,609 --> 01:32:03,199
's a little bit of

2003
01:32:03,199 --> 01:32:06,319
a balance there right now we're planning to draw that down

2004
01:32:06,319 --> 01:32:08,039
and that's part of the

2005
01:32:08,039 --> 01:32:11,609
strategy for keeping the ECA fixed as long as we can right

2006
01:32:11,609 --> 01:32:12,399
now it's at point

2007
01:32:12,399 --> 01:32:15,270
zero three four one we'd like to keep it there and that

2008
01:32:15,270 --> 01:32:17,039
will generate with the

2009
01:32:17,039 --> 01:32:20,060
suspension of the TCRF factor that will generate that three

2010
01:32:20,060 --> 01:32:21,039
and a half percent

2011
01:32:21,039 --> 01:32:25,909
rate decrease for for residential customers going forward

2012
01:32:25,909 --> 01:32:27,039
wanted to show

2013
01:32:27,039 --> 01:32:30,750
the formula also I guess with this conversation so it's

2014
01:32:30,750 --> 01:32:31,600
your projected

2015
01:32:31,600 --> 01:32:35,819
energy costs and revenues and the balancing account so if

2016
01:32:35,819 --> 01:32:36,880
it costs less

2017
01:32:36,880 --> 01:32:40,159
than a prior period then you credit that to the ECA and

2018
01:32:40,159 --> 01:32:41,760
reduce it that way and if

2019
01:32:41,760 --> 01:32:44,500
it costs more than the balancing cap will be positive and

2020
01:32:44,500 --> 01:32:45,840
you add that back

2021
01:32:45,840 --> 01:32:50,439
in you divide it by kilowatt hours and that's the that's

2022
01:32:50,439 --> 01:32:51,680
the ECA now the

2023
01:32:51,680 --> 01:32:54,180
proposed calculation is the same but we'll just add the

2024
01:32:54,180 --> 01:32:55,000
deck expenses in

2025
01:32:55,000 --> 01:32:57,329
there and it will include all the revenues and that's going

2026
01:32:57,329 --> 01:32:57,560
to be

2027
01:32:57,560 --> 01:33:00,380
particularly attractive for a few years because as was

2028
01:33:00,380 --> 01:33:02,159
mentioned we have little

2029
01:33:02,159 --> 01:33:05,279
or no debt service in 19 I think we have about 4 million

2030
01:33:05,279 --> 01:33:06,680
and then it goes up after

2031
01:33:06,680 --> 01:33:08,609
that so there's going to be a significant amount of

2032
01:33:08,609 --> 01:33:09,319
revenues this year

2033
01:33:09,319 --> 01:33:14,220
next year associated with the deck operation so that could

2034
01:33:14,220 --> 01:33:14,960
be credited back

2035
01:33:14,960 --> 01:33:19,119
in that particular formula for instance question I just

2036
01:33:19,119 --> 01:33:21,000
want to clarify you're

2037
01:33:21,000 --> 01:33:24,800
going to treat it as a strict pass-through so when we are

2038
01:33:24,800 --> 01:33:25,640
when we need

2039
01:33:25,640 --> 01:33:28,069
more money we're going to get more money when we have more

2040
01:33:28,069 --> 01:33:28,840
than we need we're

2041
01:33:28,840 --> 01:33:31,720
going to give it back so you're going to treat it as a past

2042
01:33:31,720 --> 01:33:32,199
that's my

2043
01:33:32,199 --> 01:33:35,199
philosophical recommendation I think we're gonna it will

2044
01:33:35,199 --> 01:33:36,199
stay flat at the

2045
01:33:36,199 --> 01:33:38,699
moment for this I'm going to try to keep it flat for this

2046
01:33:38,699 --> 01:33:40,319
next budget year we

2047
01:33:40,319 --> 01:33:42,819
were starting with a positive balance and when we ran all

2048
01:33:42,819 --> 01:33:43,640
the numbers that

2049
01:33:43,640 --> 01:33:47,859
looked like we couldn't keep it flat but it but as soon as

2050
01:33:47,859 --> 01:33:48,840
we burn it through

2051
01:33:48,840 --> 01:33:53,100
the money we have then I'd like to I'd like to go to a more

2052
01:33:53,100 --> 01:33:55,079
exacting call it a

2053
01:33:55,079 --> 01:34:01,109
pure ECA yeah I think I think in the past we've we used to

2054
01:34:01,109 --> 01:34:01,579
call it over

2055
01:34:01,579 --> 01:34:03,989
collected and under collected and that's essentially what

2056
01:34:03,989 --> 01:34:04,840
we're same thing we're

2057
01:34:04,840 --> 01:34:09,819
talking about is you're over collected if you've collected

2058
01:34:09,819 --> 01:34:10,640
more than what your

2059
01:34:10,640 --> 01:34:15,960
energy cost actually is for this period and so and there's

2060
01:34:15,960 --> 01:34:17,079
always been a target

2061
01:34:17,079 --> 01:34:20,949
I can't remember at some point we put a target on it where

2062
01:34:20,949 --> 01:34:22,119
we didn't get let it

2063
01:34:22,119 --> 01:34:25,810
get over yeah there was a band there was it was if I recall

2064
01:34:25,810 --> 01:34:26,840
it was plus five and

2065
01:34:26,840 --> 01:34:31,770
minus five like a ten million dollar window we never wanted

2066
01:34:31,770 --> 01:34:32,239
to be under

2067
01:34:32,239 --> 01:34:35,989
collected more than negative five million nor over

2068
01:34:35,989 --> 01:34:37,039
collected more than five

2069
01:34:37,039 --> 01:34:40,489
million right and so so we may be looking at a different

2070
01:34:40,489 --> 01:34:41,840
band or different

2071
01:34:41,840 --> 01:34:44,600
way of looking at that yeah I'm open-minded that just as

2072
01:34:44,600 --> 01:34:45,279
long as it does

2073
01:34:45,279 --> 01:34:48,800
self adjust to some regular degree and I think I think like

2074
01:34:48,800 --> 01:34:49,920
say it's good for

2075
01:34:49,920 --> 01:34:53,140
both the financial security of the agency as well as the

2076
01:34:53,140 --> 01:34:54,039
customers they're

2077
01:34:54,039 --> 01:34:57,220
they're getting back in real time anything we can save if

2078
01:34:57,220 --> 01:34:57,920
the market turns

2079
01:34:57,920 --> 01:35:00,659
in our favor for instance and our power costs go down then

2080
01:35:00,659 --> 01:35:01,560
we can share that on

2081
01:35:01,560 --> 01:35:05,810
a real-time basis is is now the appropriate time to ask

2082
01:35:05,810 --> 01:35:07,119
about the TCRF

2083
01:35:07,119 --> 01:35:11,920
sure suspension of that so kind of I know that's kind of

2084
01:35:11,920 --> 01:35:13,840
walked through that

2085
01:35:13,840 --> 01:35:18,369
I know so the TCRF revenue that's the TCRF revenue we

2086
01:35:18,369 --> 01:35:19,880
collect from our

2087
01:35:19,880 --> 01:35:23,399
customers is that correct right so a couple of years ago

2088
01:35:23,399 --> 01:35:24,560
you established the

2089
01:35:24,560 --> 01:35:28,239
TCRF because we were our expenses were going up for

2090
01:35:28,239 --> 01:35:30,399
transmission and we really

2091
01:35:30,399 --> 01:35:33,399
didn't have a pot of money to compensate for that so

2092
01:35:33,399 --> 01:35:34,920
establish the TCRF which I

2093
01:35:34,920 --> 01:35:39,520
think was great we just at this point in time felt like we

2094
01:35:39,520 --> 01:35:42,279
could afford to

2095
01:35:42,279 --> 01:35:45,760
suspend it for this year where there's a couple of

2096
01:35:45,760 --> 01:35:46,520
different ways we could have

2097
01:35:46,520 --> 01:35:48,680
accomplished the same thing but we didn't really want to

2098
01:35:48,680 --> 01:35:49,420
play with the base

2099
01:35:49,420 --> 01:35:53,500
rates or touch the base rates and it was the right amount

2100
01:35:53,500 --> 01:35:54,760
of money was in that

2101
01:35:54,760 --> 01:35:58,069
pot there's about five and a half million dollars in the T

2102
01:35:58,069 --> 01:35:59,159
CRF for FY 19

2103
01:35:59,159 --> 01:36:02,550
that now we can return to customers basically and not

2104
01:36:02,550 --> 01:36:03,840
collect it this next

2105
01:36:03,840 --> 01:36:07,369
year we're hoping we can go forward the same way and I

2106
01:36:07,369 --> 01:36:08,439
think that's in our plan

2107
01:36:08,439 --> 01:36:11,739
but we'll be revisiting that each and every year if we can

2108
01:36:11,739 --> 01:36:12,840
continue to do that

2109
01:36:12,840 --> 01:36:16,859
we would if they do go up and we're not able to continue

2110
01:36:16,859 --> 01:36:18,039
the suspension that one

2111
01:36:18,039 --> 01:36:20,869
possibility is that we could roll it into the ACA at some

2112
01:36:20,869 --> 01:36:21,800
point or leave it

2113
01:36:21,800 --> 01:36:24,600
out there by itself I think that'd be a decision you guys

2114
01:36:24,600 --> 01:36:25,800
we talk about it some

2115
01:36:25,800 --> 01:36:29,430
later date and you could help me make a recommendation in

2116
01:36:29,430 --> 01:36:32,520
that regard so so just

2117
01:36:32,520 --> 01:36:37,529
to be sure the TCRF that's not that has nothing to do with

2118
01:36:37,529 --> 01:36:38,720
T cost reimbursements

2119
01:36:38,720 --> 01:36:43,159
no that's on the flip side that's our share of the T cost

2120
01:36:43,159 --> 01:36:43,920
that we pay other

2121
01:36:43,920 --> 01:36:48,039
utilities right yes and it's rising and it will be

2122
01:36:48,039 --> 01:36:49,319
continuing to project it to

2123
01:36:49,319 --> 01:36:53,260
rise right the amount we're being assessed for our share of

2124
01:36:53,260 --> 01:36:54,399
the grid out

2125
01:36:54,399 --> 01:36:57,960
there in air cot so folks like us are putting in new

2126
01:36:57,960 --> 01:36:59,079
projects and charging

2127
01:36:59,079 --> 01:37:03,159
that back to the to the electric utilities in the state so

2128
01:37:03,159 --> 01:37:04,159
there's a

2129
01:37:04,159 --> 01:37:10,199
reduction because I know a lot of the the capital projects

2130
01:37:10,199 --> 01:37:11,239
I guess are

2131
01:37:11,239 --> 01:37:15,199
classified as transmission cost so it is a reduction in

2132
01:37:15,199 --> 01:37:17,319
those play in hand-in-hand

2133
01:37:17,319 --> 01:37:21,520
with suspension of that of that fee are you saying our

2134
01:37:21,520 --> 01:37:22,520
transmission projects for

2135
01:37:22,520 --> 01:37:26,960
our CIP yes it's being reduced has no effect so these are

2136
01:37:26,960 --> 01:37:28,199
our share of what

2137
01:37:28,199 --> 01:37:30,529
the other utilities in state are investing well I'm talking

2138
01:37:30,529 --> 01:37:31,640
about our TCRF

2139
01:37:31,640 --> 01:37:36,079
right right that we charge that piece of the right right it

2140
01:37:36,079 --> 01:37:37,199
was meant to

2141
01:37:37,199 --> 01:37:41,930
compensate for our expenses for the state allocation of

2142
01:37:41,930 --> 01:37:43,359
cost to us our our

2143
01:37:43,359 --> 01:37:49,159
transmission costs that we were charged correct yes so

2144
01:37:49,159 --> 01:37:50,560
versus what we charge

2145
01:37:50,560 --> 01:37:53,560
others that's a different pot so this would be what we're

2146
01:37:53,560 --> 01:37:54,840
paying to use maybe

2147
01:37:54,840 --> 01:37:58,310
some expenses and transmission at City of Austin put in for

2148
01:37:58,310 --> 01:38:00,119
instance or encore

2149
01:38:00,119 --> 01:38:04,560
or others we get our fair share of that right build each

2150
01:38:04,560 --> 01:38:05,479
year so that's what

2151
01:38:05,479 --> 01:38:10,600
that was nothing to do with our particular CIP investment

2152
01:38:10,600 --> 01:38:11,979
okay all right

2153
01:38:11,979 --> 01:38:16,439
we'll keep we'll keep marching on I'll let Tony back

2154
01:38:19,560 --> 01:38:23,159
okay so so which have here in front of you we provide in

2155
01:38:23,159 --> 01:38:25,199
your backup it's just

2156
01:38:25,199 --> 01:38:30,039
our current forecast for this fund again as as George

2157
01:38:30,039 --> 01:38:32,239
mentioned this does include

2158
01:38:32,239 --> 01:38:39,970
the suspension of the TCRF going forward no proposed

2159
01:38:39,970 --> 01:38:42,359
changes to to base rates and

2160
01:38:42,359 --> 01:38:47,890
we do attempt at least you know over the next couple years

2161
01:38:47,890 --> 01:38:48,880
to to try to maintain

2162
01:38:48,880 --> 01:38:54,329
that that ECA and and and hopefully in the future look at a

2163
01:38:54,329 --> 01:38:55,720
more mathematical

2164
01:38:55,720 --> 01:39:02,720
calculation of of that ECA adjustment the 19 proposed

2165
01:39:02,720 --> 01:39:04,960
budget does include this

2166
01:39:04,960 --> 01:39:11,350
28 point million dollars to defuse the debt that's the 2010

2167
01:39:11,350 --> 01:39:13,439
scrubber debt we

2168
01:39:13,439 --> 01:39:17,670
did also talk to you about the decrease in purchase power

2169
01:39:17,670 --> 01:39:19,239
that you'll that you

2170
01:39:19,239 --> 01:39:26,909
see here this plan does include a drawdown of of reserves

2171
01:39:26,909 --> 01:39:29,560
in 1718 to about

2172
01:39:29,560 --> 01:39:37,229
13.8 million and in 19 another 27.6 million we are

2173
01:39:37,229 --> 01:39:40,199
targeting that reserve

2174
01:39:40,199 --> 01:39:43,460
the operating reserve for this fund to about 40 million

2175
01:39:43,460 --> 01:39:44,520
dollars is what we

2176
01:39:44,520 --> 01:39:48,630
would target over the plan year again in some of these

2177
01:39:48,630 --> 01:39:50,239
years we're certainly a

2178
01:39:50,239 --> 01:39:54,680
little bit above that but that's that is the plan or the

2179
01:39:54,680 --> 01:39:55,800
recommendation for you

2180
01:39:55,800 --> 01:40:01,600
the debt coverage for this fund per our debt policy is 1.25

2181
01:40:01,600 --> 01:40:02,560
similar to all other

2182
01:40:02,560 --> 01:40:06,720
utilities and this plan certainly projects to maintain us

2183
01:40:06,720 --> 01:40:08,600
above above that

2184
01:40:08,600 --> 01:40:13,420
particular measure and just just as a note with some of the

2185
01:40:13,420 --> 01:40:15,039
revamping that we

2186
01:40:15,039 --> 01:40:18,189
did of our revenue bond ordinance the rainy bomb ordinance

2187
01:40:18,189 --> 01:40:19,039
on the utility

2188
01:40:19,039 --> 01:40:23,529
system a revenue debt for the deck only requires a one-t

2189
01:40:23,529 --> 01:40:25,239
imes coverage so this is

2190
01:40:25,239 --> 01:40:33,460
certainly well above that that requirement I guess my eyes

2191
01:40:33,460 --> 01:40:34,000
drawn down

2192
01:40:34,000 --> 01:40:49,680
to 1.01 in 18 in 18 yeah yeah mr. Chairman we had we had

2193
01:40:49,680 --> 01:40:51,000
looked at this we

2194
01:40:51,000 --> 01:40:53,319
probably need to go back and take a closer look at that

2195
01:40:53,319 --> 01:40:54,159
calculation to make

2196
01:40:54,159 --> 01:40:57,300
sure that that that there's no error in that so there might

2197
01:40:57,300 --> 01:40:58,199
be an error in that

2198
01:40:58,199 --> 01:41:07,319
that's good that's correct so so for for a bond covenant

2199
01:41:07,319 --> 01:41:10,359
requirements we do look

2200
01:41:10,359 --> 01:41:13,359
at the entire utility system that's made up of electric

2201
01:41:13,359 --> 01:41:15,239
water and wastewater the

2202
01:41:15,239 --> 01:41:19,680
three combined utilities are you know are above the 1.25

2203
01:41:19,680 --> 01:41:20,520
but we'll certainly

2204
01:41:20,520 --> 01:41:23,260
take a look at that at that calculation a little bit closer

2205
01:41:23,260 --> 01:41:23,840
make sure it's

2206
01:41:23,840 --> 01:41:29,090
correct and the debt coverage I'm sorry and the debt

2207
01:41:29,090 --> 01:41:30,479
coverage for the deck kicks

2208
01:41:30,479 --> 01:41:36,720
in and 19 or 20 the debt cover the debt coverage service

2209
01:41:36,720 --> 01:41:42,000
the debt service for

2210
01:41:42,000 --> 01:41:51,170
19 20 is when it really goes up to just under 18 okay so as

2211
01:41:51,170 --> 01:41:54,000
I mentioned earlier

2212
01:41:54,000 --> 01:41:58,979
this is the the picture for you what the total debt for DME

2213
01:41:58,979 --> 01:42:01,439
was at 930 17 this

2214
01:42:01,439 --> 01:42:05,020
does not include any of the the recommendations that are

2215
01:42:05,020 --> 01:42:05,920
being made we

2216
01:42:05,920 --> 01:42:09,899
just wanted to let you know just as a reference point where

2217
01:42:09,899 --> 01:42:11,680
we were so that

2218
01:42:11,680 --> 01:42:15,729
include about nine hundred and thirty nine million of

2219
01:42:15,729 --> 01:42:17,159
principal and interest

2220
01:42:17,159 --> 01:42:23,390
for our our operation there's an additional sixty point

2221
01:42:23,390 --> 01:42:24,319
five million of

2222
01:42:24,319 --> 01:42:29,699
TMP a debt that's paid through our purchase power expenses

2223
01:42:29,699 --> 01:42:30,880
on our in our

2224
01:42:30,880 --> 01:42:37,720
budget and so this is where we were in that in that budget

2225
01:42:37,720 --> 01:42:40,840
as of 930 17 slightly

2226
01:42:40,840 --> 01:42:48,460
over a billion dollars so I know this is a very busy

2227
01:42:48,460 --> 01:42:52,600
spreadsheet for you but I

2228
01:42:52,600 --> 01:42:56,180
did want to just for reference point 1718 here's a nine

2229
01:42:56,180 --> 01:42:57,239
nine hundred and

2230
01:42:57,239 --> 01:42:59,590
thirty nine million of principal and interest that would be

2231
01:42:59,590 --> 01:43:00,119
out that was

2232
01:43:00,119 --> 01:43:04,409
outstanding at the beginning of the fiscal year we are at

2233
01:43:04,409 --> 01:43:06,640
the end of fiscal

2234
01:43:06,640 --> 01:43:12,340
year 18 19 with the proposed pay down of the of the scrub

2235
01:43:12,340 --> 01:43:16,319
ber debt 28.6 million we

2236
01:43:16,319 --> 01:43:20,760
will be down to about 848 million dollars in debt does not

2237
01:43:20,760 --> 01:43:22,920
include the 60

2238
01:43:22,920 --> 01:43:26,199
million that is out there and TMP a that's paid through

2239
01:43:26,199 --> 01:43:28,239
purchase power I did

2240
01:43:28,239 --> 01:43:31,409
want to point out that one of the positive things of paying

2241
01:43:31,409 --> 01:43:32,000
down this

2242
01:43:32,000 --> 01:43:37,720
28.6 million is that we will save about 3.7 million dollars

2243
01:43:37,720 --> 01:43:39,680
in interest that

2244
01:43:39,680 --> 01:43:42,829
the city will not have to pay on that debt by by paying it

2245
01:43:42,829 --> 01:43:45,039
off early so so

2246
01:43:45,039 --> 01:43:49,479
again that was part of our recommendation last year and and

2247
01:43:49,479 --> 01:43:49,920
and we

2248
01:43:49,920 --> 01:43:52,750
still think economically it makes sense for us to to

2249
01:43:52,750 --> 01:43:54,119
recommend this for your

2250
01:43:54,119 --> 01:44:00,619
consideration today and George will come back up here and

2251
01:44:00,619 --> 01:44:01,479
talk to you about the

2252
01:44:01,479 --> 01:44:06,520
purchase power unless you have questions about the debt

2253
01:44:06,520 --> 01:44:08,920
could you say a little

2254
01:44:08,920 --> 01:44:15,729
something about how the DME the total DME debt compares to

2255
01:44:15,729 --> 01:44:17,199
the total debt for

2256
01:44:17,199 --> 01:44:21,430
the city just so people can you know the public and kind of

2257
01:44:21,430 --> 01:44:22,439
put that in in

2258
01:44:22,439 --> 01:44:28,319
perspective certainly by far the the the largest amount of

2259
01:44:28,319 --> 01:44:30,359
our outstanding debt I

2260
01:44:30,359 --> 01:44:33,619
don't have the exact percentage for you today but it's

2261
01:44:33,619 --> 01:44:34,680
certainly you know the

2262
01:44:34,680 --> 01:44:37,680
largest amount of debt that we have out there primarily as

2263
01:44:37,680 --> 01:44:39,680
a result of the 200

2264
01:44:39,680 --> 01:44:43,600
million that we had issued for the deck for the deck yeah

2265
01:44:43,600 --> 01:44:44,640
yeah so close to a

2266
01:44:44,640 --> 01:44:50,960
billion I mean it's gone down citywide from a billion to

2267
01:44:50,960 --> 01:44:52,359
under a billion but

2268
01:44:52,359 --> 01:44:56,539
but for DM in for DME itself it's still close to a billion

2269
01:44:56,539 --> 01:44:57,880
so yeah that's and

2270
01:44:57,880 --> 01:45:00,470
part of the strategy here too and the recommendation for

2271
01:45:00,470 --> 01:45:02,359
the forecast and in

2272
01:45:02,359 --> 01:45:05,189
moving to more of a cash funding of our of our of our CAP

2273
01:45:05,189 --> 01:45:06,279
program is to continue

2274
01:45:06,279 --> 01:45:09,119
to deliver this fund just like we're doing with some of the

2275
01:45:09,119 --> 01:45:09,800
other funds and

2276
01:45:09,800 --> 01:45:14,359
so over over the over the five-year forecast if you look at

2277
01:45:14,359 --> 01:45:15,840
a 2010 20-year

2278
01:45:15,840 --> 01:45:19,250
projection you'll see continual decrease of that I think

2279
01:45:19,250 --> 01:45:21,600
once we get to a more

2280
01:45:21,600 --> 01:45:25,750
reasonable level of debt then we'll you know we may come

2281
01:45:25,750 --> 01:45:27,439
back in a future day to

2282
01:45:27,439 --> 01:45:31,229
look at additional debt in debt issuances but that would be

2283
01:45:31,229 --> 01:45:31,720
in the

2284
01:45:31,720 --> 01:45:35,279
future but for the next five years the plan would be to

2285
01:45:35,279 --> 01:45:36,680
minimize the amount of

2286
01:45:36,680 --> 01:45:39,680
debt that's being issued and brought on at the same time

2287
01:45:39,680 --> 01:45:40,520
you'll continue to see

2288
01:45:40,520 --> 01:45:45,960
debt to decrease and as opportunities come up to

2289
01:45:45,960 --> 01:45:46,800
potentially pay down

2290
01:45:46,800 --> 01:45:50,840
additional debt we'll certainly be looking at that as well

2291
01:45:50,840 --> 01:45:53,159
and so tell me

2292
01:45:53,159 --> 01:45:57,000
if this is skipping ahead too much but it's applying to the

2293
01:45:57,000 --> 01:45:58,079
to the debt excuse

2294
01:45:58,079 --> 01:46:01,909
me it looks like you know based on what we saw in the

2295
01:46:01,909 --> 01:46:03,560
backup for today that the

2296
01:46:03,560 --> 01:46:12,859
deck will be bringing in net about 10 million a year so you

2297
01:46:12,859 --> 01:46:14,659
know originally we

2298
01:46:14,659 --> 01:46:19,520
had been told that the deck would end up paying for itself

2299
01:46:19,520 --> 01:46:21,000
you know in relatively

2300
01:46:21,000 --> 01:46:25,100
short time but at that rate it this rate now you know given

2301
01:46:25,100 --> 01:46:26,640
these new figures it

2302
01:46:26,640 --> 01:46:30,680
looks like it wouldn't be for you know I don't know 20 22

2303
01:46:30,680 --> 01:46:32,239
23 years something like

2304
01:46:32,239 --> 01:46:35,039
that so whatever is gonna make up that debt service it's

2305
01:46:35,039 --> 01:46:36,079
not gonna be primarily

2306
01:46:36,079 --> 01:46:40,159
from the deck and and a couple of slides we'll certainly

2307
01:46:40,159 --> 01:46:41,119
dig into that with you

2308
01:46:41,119 --> 01:46:43,520
probably answer your questions a little bit more succinctly

2309
01:46:43,520 --> 01:46:50,199
okay thank you so you

2310
01:46:50,199 --> 01:46:52,909
know the most significant part of our budget is purchase

2311
01:46:52,909 --> 01:46:53,680
power you know

2312
01:46:53,680 --> 01:46:58,119
figuring out what the markets are gonna do and and you know

2313
01:46:58,119 --> 01:46:59,479
we buy our load from

2314
01:46:59,479 --> 01:47:02,220
the market and all of our resources are sold to the market

2315
01:47:02,220 --> 01:47:03,119
so there's kind of a

2316
01:47:03,119 --> 01:47:06,439
netting thing going on so the keys key assumptions in the

2317
01:47:06,439 --> 01:47:06,920
purchase power

2318
01:47:06,920 --> 01:47:09,939
forecast was the deck being operational by July and we're

2319
01:47:09,939 --> 01:47:11,119
hoping earlier than

2320
01:47:11,119 --> 01:47:14,779
July Gibbons Creek will be operational through September

2321
01:47:14,779 --> 01:47:16,159
and I recall you were

2322
01:47:16,159 --> 01:47:19,579
with me to recommend we continue that at least through

2323
01:47:19,579 --> 01:47:21,279
September we use forward

2324
01:47:21,279 --> 01:47:24,789
air cod market prices as per the standard and pours global

2325
01:47:24,789 --> 01:47:25,680
forecast and

2326
01:47:25,680 --> 01:47:29,869
we try to match it up with past market profiles to map out

2327
01:47:29,869 --> 01:47:30,960
the costs and

2328
01:47:30,960 --> 01:47:34,710
revenues going forward we have the bluebell solar one

2329
01:47:34,710 --> 01:47:36,319
project operational by

2330
01:47:36,319 --> 01:47:41,380
January of 2019 that's be our first solar Santa Rita wind

2331
01:47:41,380 --> 01:47:42,640
became operational

2332
01:47:42,640 --> 01:47:44,960
in April that's gonna be a nice resource for us

2333
01:47:44,960 --> 01:47:46,920
particularly this summer we have

2334
01:47:46,920 --> 01:47:51,600
gas prices as per NYMEX forward curve and the other

2335
01:47:51,600 --> 01:47:53,359
transportation and adders

2336
01:47:53,359 --> 01:47:58,159
that you're familiar with also all of our resources are

2337
01:47:58,159 --> 01:47:59,560
pretty well locked in

2338
01:47:59,560 --> 01:48:03,000
per contract so all of our renewables so we know what those

2339
01:48:03,000 --> 01:48:05,239
prices are and you

2340
01:48:05,239 --> 01:48:08,750
mentioned talked earlier Tony did about the load forecast

2341
01:48:08,750 --> 01:48:10,960
which we updated and

2342
01:48:10,960 --> 01:48:15,789
we had that validated by an outside entity so it was

2343
01:48:15,789 --> 01:48:17,560
mentioned earlier about

2344
01:48:17,560 --> 01:48:20,300
the the revenue assumptions how much the deck might

2345
01:48:20,300 --> 01:48:22,159
generate how much TMP a might

2346
01:48:22,159 --> 01:48:24,720
generate as well as all of our resources what's the you

2347
01:48:24,720 --> 01:48:25,840
know what is the value of

2348
01:48:25,840 --> 01:48:31,279
all those that operate going forward and right now we're

2349
01:48:31,279 --> 01:48:32,159
forecasting a fairly

2350
01:48:32,159 --> 01:48:36,130
high market it's you've heard about the scarcity of power

2351
01:48:36,130 --> 01:48:37,520
this summer so market

2352
01:48:37,520 --> 01:48:40,380
prices have gone through the roof so to speak question

2353
01:48:40,380 --> 01:48:41,800
because what will actual

2354
01:48:41,800 --> 01:48:44,670
prices be the day of will they be the same as the forwards

2355
01:48:44,670 --> 01:48:45,640
we're looking at

2356
01:48:45,640 --> 01:48:48,920
right now what they decline so there's a whole lot of

2357
01:48:48,920 --> 01:48:50,359
subjectivity there we're

2358
01:48:50,359 --> 01:48:53,479
doing our best and and we consulted with our outside

2359
01:48:53,479 --> 01:48:54,960
council also our outside

2360
01:48:54,960 --> 01:48:59,229
consultants on this so one thing we did is we ran a

2361
01:48:59,229 --> 01:49:01,319
scenario where we soften the

2362
01:49:01,319 --> 01:49:05,949
market forecast we reduced the deck revenue by about 11

2363
01:49:05,949 --> 01:49:06,960
million dollars just

2364
01:49:06,960 --> 01:49:10,239
to see what would happen everything else reduced okay the

2365
01:49:10,239 --> 01:49:11,279
cost of our load that

2366
01:49:11,279 --> 01:49:14,020
we purchased as well as all of our other resources and we

2367
01:49:14,020 --> 01:49:15,079
found there was only a

2368
01:49:15,079 --> 01:49:18,470
very nominal increase in the net purchase power budget

2369
01:49:18,470 --> 01:49:19,619
about 2 million and

2370
01:49:19,619 --> 01:49:23,560
18 and 2.6 million and 19 if it turned out to be a lot

2371
01:49:23,560 --> 01:49:24,479
bigger or worse than

2372
01:49:24,479 --> 01:49:28,199
that and we probably would have come in with a more of a

2373
01:49:28,199 --> 01:49:29,840
conservative forecast

2374
01:49:29,840 --> 01:49:33,539
so right now we're sticking with the market forwards that

2375
01:49:33,539 --> 01:49:34,680
we're seeing out

2376
01:49:34,680 --> 01:49:37,439
there that have been validated to us and knowing that if

2377
01:49:37,439 --> 01:49:38,439
for some reason the

2378
01:49:38,439 --> 01:49:41,180
market doesn't develop like they're predicting that the

2379
01:49:41,180 --> 01:49:41,880
impact will be

2380
01:49:41,880 --> 01:49:44,279
fairly modest and will you know probably come back at some

2381
01:49:44,279 --> 01:49:45,039
point in time and

2382
01:49:45,039 --> 01:49:50,739
make an adjustment on our budget some of the deck

2383
01:49:50,739 --> 01:49:53,279
assumptions you've heard us

2384
01:49:53,279 --> 01:49:57,329
talk before average heat rate of 8300 BTUs per kilowatt

2385
01:49:57,329 --> 01:49:59,479
hour tests so far make

2386
01:49:59,479 --> 01:50:02,600
that look good we're going to be coming in under that

2387
01:50:02,600 --> 01:50:04,319
talked about natural gas

2388
01:50:04,319 --> 01:50:07,319
prices we're not predicting any maintenance or forced out

2389
01:50:07,319 --> 01:50:08,199
ages for 19

2390
01:50:08,199 --> 01:50:11,029
brand-new unit like having a brand-new car I think it's

2391
01:50:11,029 --> 01:50:13,000
going to operate we

2392
01:50:13,000 --> 01:50:15,750
reserve a part of the deck capacity for providing ancillary

2393
01:50:15,750 --> 01:50:16,560
services in the

2394
01:50:16,560 --> 01:50:19,949
market we have an ancillary service requirement and we're

2395
01:50:19,949 --> 01:50:20,800
going to use the

2396
01:50:20,800 --> 01:50:25,279
deck for that talked about forward market price profiles

2397
01:50:25,279 --> 01:50:26,720
deck operating

2398
01:50:26,720 --> 01:50:30,399
hours limited as you know by the missions permit that will

2399
01:50:30,399 --> 01:50:31,640
be about 3100

2400
01:50:31,640 --> 01:50:35,489
hours we're not predict that would be about 35% capacity

2401
01:50:35,489 --> 01:50:36,319
factor our

2402
01:50:36,319 --> 01:50:40,060
presumption for this next year is a substantially less than

2403
01:50:40,060 --> 01:50:41,119
that so even in

2404
01:50:41,119 --> 01:50:43,520
the best case where we're looking at a lot of revenue for

2405
01:50:43,520 --> 01:50:44,760
18 and 19 we're going

2406
01:50:44,760 --> 01:50:49,199
to be well under that 3100 hours we look at variable O&M so

2407
01:50:49,199 --> 01:50:49,880
what are all the

2408
01:50:49,880 --> 01:50:54,569
costs that are impacting the deck such as the the SCR

2409
01:50:54,569 --> 01:50:56,039
catalyst the ammonia that

2410
01:50:56,039 --> 01:50:58,779
you approved recently the lube oil contract you approve

2411
01:50:58,779 --> 01:50:59,600
some of that gets

2412
01:50:59,600 --> 01:51:02,350
consumed and all of the other variable expenses out there

2413
01:51:02,350 --> 01:51:03,199
we add that to the

2414
01:51:03,199 --> 01:51:06,590
fuel price and we say okay this is the number we have to

2415
01:51:06,590 --> 01:51:07,880
get when we sell power

2416
01:51:07,880 --> 01:51:11,840
to the market we have debt service and of course we talked

2417
01:51:11,840 --> 01:51:12,399
about that already

2418
01:51:12,399 --> 01:51:16,000
and there's other deck related expenses the the people who

2419
01:51:16,000 --> 01:51:16,960
are going to be

2420
01:51:16,960 --> 01:51:19,960
there operating the plant and other types of expenses at

2421
01:51:19,960 --> 01:51:20,800
the plant so all

2422
01:51:20,800 --> 01:51:23,800
that's rolled together in the pro forma and this is what

2423
01:51:23,800 --> 01:51:25,239
resulted out of that at

2424
01:51:25,239 --> 01:51:27,569
the top you see the revenue and that includes energy

2425
01:51:27,569 --> 01:51:28,319
revenue as well as

2426
01:51:28,319 --> 01:51:31,319
ancillary services and then you have all the expense

2427
01:51:31,319 --> 01:51:33,239
categories below we talked

2428
01:51:33,239 --> 01:51:37,800
in FY 19 about the debt and you can see the 4.4 million

2429
01:51:37,800 --> 01:51:39,600
there that would be what

2430
01:51:39,600 --> 01:51:44,479
what our schedule is for debt that year and then moving

2431
01:51:44,479 --> 01:51:46,000
forward we broke out

2432
01:51:46,000 --> 01:51:49,000
principal and interest in two pieces you'll see that's that

2433
01:51:49,000 --> 01:51:49,680
will be about

2434
01:51:49,680 --> 01:51:56,760
17.6 million pretty well fixed going forward so we

2435
01:51:56,760 --> 01:51:57,880
incorporated that and

2436
01:51:57,880 --> 01:52:01,770
you can see then we sum up all the expenditures you've got

2437
01:52:01,770 --> 01:52:02,760
a kind of a net

2438
01:52:02,760 --> 01:52:07,199
income board member referenced earlier that first two years

2439
01:52:07,199 --> 01:52:07,720
we look pretty

2440
01:52:07,720 --> 01:52:13,159
good at this time we're seeing predicting that you know all

2441
01:52:13,159 --> 01:52:13,640
of the debt

2442
01:52:13,640 --> 01:52:17,850
cannot be covered by the market revenues but a substantial

2443
01:52:17,850 --> 01:52:20,680
part can in 1920 for

2444
01:52:20,680 --> 01:52:24,770
instance the third column we're predicting not being able

2445
01:52:24,770 --> 01:52:25,840
to cover 1.8

2446
01:52:25,840 --> 01:52:28,600
million with the current crystal ball that we have forward

2447
01:52:28,600 --> 01:52:29,399
but we're still

2448
01:52:29,399 --> 01:52:33,840
covering the other part of that 17.6 million debt service

2449
01:52:33,840 --> 01:52:35,439
so we're covering

2450
01:52:35,439 --> 01:52:38,689
quite a bit of it and we're only not recovering a part and

2451
01:52:38,689 --> 01:52:39,640
then it gets a

2452
01:52:39,640 --> 01:52:42,470
little worse going forward because we're we're seeing the

2453
01:52:42,470 --> 01:52:43,640
market getting back to

2454
01:52:43,640 --> 01:52:46,960
more normal condition there'll be some incentives for folks

2455
01:52:46,960 --> 01:52:47,560
to put in more

2456
01:52:47,560 --> 01:52:50,840
power plants out there try to manage their load because

2457
01:52:50,840 --> 01:52:51,640
there's going to be

2458
01:52:51,640 --> 01:52:55,220
very costly summer this year and next year and and we think

2459
01:52:55,220 --> 01:52:56,319
eventually that

2460
01:52:56,319 --> 01:52:58,840
market's going to get back to normal so there's going to be

2461
01:52:58,840 --> 01:52:59,640
a bigger gap out

2462
01:52:59,640 --> 01:53:06,380
there but even at the far end look at 2021 22 and 2022 23

2463
01:53:06,380 --> 01:53:07,439
we're still covering

2464
01:53:07,439 --> 01:53:11,930
at that point even about 6 million of the debt we're upside

2465
01:53:11,930 --> 01:53:14,479
down the 12 was

2466
01:53:14,479 --> 01:53:19,159
also mentioned long term it's about things about 17 years

2467
01:53:19,159 --> 01:53:19,960
out there because

2468
01:53:19,960 --> 01:53:23,189
that the debt service didn't start right away so it's a 20-

2469
01:53:23,189 --> 01:53:26,479
year revenue bond but

2470
01:53:26,479 --> 01:53:29,699
the debt didn't start to like the third year so there's

2471
01:53:29,699 --> 01:53:31,039
only going to be 17 more

2472
01:53:31,039 --> 01:53:33,800
years at that point in time that 18 million dollars

2473
01:53:33,800 --> 01:53:35,279
disappears so that helps

2474
01:53:35,279 --> 01:53:37,890
the economics at that point we'll go back to you know where

2475
01:53:37,890 --> 01:53:38,800
it probably flips

2476
01:53:38,800 --> 01:53:41,920
the other direction and we're making more money than we're

2477
01:53:41,920 --> 01:53:43,039
then we're taking

2478
01:53:43,039 --> 01:53:46,979
in the other thing is you know be honest with you who can

2479
01:53:46,979 --> 01:53:48,600
predict the markets

2480
01:53:48,600 --> 01:53:51,989
even one year this you know we have to do we have to make a

2481
01:53:51,989 --> 01:53:53,039
projection and

2482
01:53:53,039 --> 01:53:56,840
projections are going to be what they're going to be wrong

2483
01:53:56,840 --> 01:53:59,800
and so yes I think I'm

2484
01:53:59,800 --> 01:54:04,479
going back to Deb's question about that we were going to

2485
01:54:04,479 --> 01:54:05,760
save so much money I

2486
01:54:05,760 --> 01:54:10,199
think that's maybe a better word this is how much we're

2487
01:54:10,199 --> 01:54:11,520
going to be able to cover

2488
01:54:11,520 --> 01:54:14,960
the debt but if we didn't have the deck we'd be at the

2489
01:54:14,960 --> 01:54:16,760
mercy of the markets and

2490
01:54:16,760 --> 01:54:22,289
I what's that piece it I think that's where they were

2491
01:54:22,289 --> 01:54:23,399
trying to make those

2492
01:54:23,399 --> 01:54:27,010
assumptions when we were looking at the deck that's missing

2493
01:54:27,010 --> 01:54:27,960
from here this is

2494
01:54:27,960 --> 01:54:31,869
what it's costing us but what could it have cost us if we

2495
01:54:31,869 --> 01:54:33,079
had to go to the

2496
01:54:33,079 --> 01:54:38,750
market for everything so you know the answer to that yeah

2497
01:54:38,750 --> 01:54:40,399
yeah who knows now

2498
01:54:40,399 --> 01:54:44,020
in our in our forecast that top line is sort of what we're

2499
01:54:44,020 --> 01:54:45,439
getting the value for

2500
01:54:45,439 --> 01:54:48,439
the deck so if we needed that to offset like our load

2501
01:54:48,439 --> 01:54:49,960
purchases that would be

2502
01:54:49,960 --> 01:54:53,350
what we would end up paying is that top line so we did try

2503
01:54:53,350 --> 01:54:54,800
to account for that

2504
01:54:54,800 --> 01:54:59,000
when we did that net income at the bottom but again who can

2505
01:54:59,000 --> 01:55:00,039
predict right

2506
01:55:00,039 --> 01:55:04,680
you know it probably wouldn't take many hours of the

2507
01:55:04,680 --> 01:55:07,560
maximum price at aircott to

2508
01:55:07,560 --> 01:55:10,010
generate a tremendous amount of money and I don't think

2509
01:55:10,010 --> 01:55:10,920
that's going to happen

2510
01:55:10,920 --> 01:55:17,159
this year but there's some folks that think it could and so

2511
01:55:17,159 --> 01:55:18,600
as more and more

2512
01:55:18,600 --> 01:55:21,909
these big units retired so this year we had over 5,000 meg

2513
01:55:21,909 --> 01:55:22,439
awatts of

2514
01:55:22,439 --> 01:55:26,250
conventional power plants retiring who knows what the next

2515
01:55:26,250 --> 01:55:27,479
shoe will drop and

2516
01:55:27,479 --> 01:55:30,500
that that's what's generating the crisis right now in the

2517
01:55:30,500 --> 01:55:31,479
market and it could

2518
01:55:31,479 --> 01:55:34,279
happen again others say hey we can't afford to compete with

2519
01:55:34,279 --> 01:55:35,239
that that cheap

2520
01:55:35,239 --> 01:55:37,850
natural gas can't afford to compete with the deck for

2521
01:55:37,850 --> 01:55:39,960
instance or some of the

2522
01:55:39,960 --> 01:55:43,390
renewables that are coming in and other other generation

2523
01:55:43,390 --> 01:55:47,399
may may disappear so I

2524
01:55:47,399 --> 01:55:52,310
I don't think any of us will know I I think she had a good

2525
01:55:52,310 --> 01:55:53,000
question and I'm

2526
01:55:53,000 --> 01:55:56,119
just trying to put the pieces together so we have did a

2527
01:55:56,119 --> 01:55:56,640
sort of a

2528
01:55:56,640 --> 01:56:01,670
straightforward income cost analysis but the jury's out

2529
01:56:01,670 --> 01:56:03,479
exactly how the deck

2530
01:56:03,479 --> 01:56:07,920
will perform this is certainly more conservative than what

2531
01:56:07,920 --> 01:56:08,560
was probably

2532
01:56:08,560 --> 01:56:14,159
predicted way back when yeah George what can I go back to

2533
01:56:14,159 --> 01:56:16,359
that just a second so

2534
01:56:16,359 --> 01:56:24,689
the revenue the deck revenue at the top goes from you know

2535
01:56:24,689 --> 01:56:26,600
31 million this

2536
01:56:26,600 --> 01:56:30,880
primarily this summer I guess it is yes part year part year

2537
01:56:30,880 --> 01:56:35,960
and then to 19 in

2538
01:56:35,960 --> 01:56:42,189
2022 23 so is that is that a function of the price we think

2539
01:56:42,189 --> 01:56:43,279
we're trying to

2540
01:56:43,279 --> 01:56:46,399
project with the price of it was what that electricity

2541
01:56:46,399 --> 01:56:47,520
generation be worth

2542
01:56:47,520 --> 01:56:51,960
right or is it volume is there a constant volume here is it

2543
01:56:51,960 --> 01:56:53,279
all 3100

2544
01:56:53,279 --> 01:56:56,569
hours no the volume when you read out there's probably only

2545
01:56:56,569 --> 01:56:57,640
half of what it is

2546
01:56:57,640 --> 01:57:01,789
in the 19 timeframe because it reacts to the market and

2547
01:57:01,789 --> 01:57:03,680
when the market says it

2548
01:57:03,680 --> 01:57:09,590
will make a profit it runs and so we basically we got back

2549
01:57:09,590 --> 01:57:10,800
to a normal and

2550
01:57:10,800 --> 01:57:13,539
these are projections that others are making for us and

2551
01:57:13,539 --> 01:57:14,560
helping us when we got

2552
01:57:14,560 --> 01:57:17,399
out there ways we thought it we went back to the market

2553
01:57:17,399 --> 01:57:19,079
that we saw in 15 16

2554
01:57:19,079 --> 01:57:26,060
and 17 much more normal market and who knows and so you're

2555
01:57:26,060 --> 01:57:27,079
not being called on

2556
01:57:27,079 --> 01:57:30,279
as much because the market doesn't need you market does not

2557
01:57:30,279 --> 01:57:31,279
need us and then the

2558
01:57:31,279 --> 01:57:34,989
pricing doesn't support a lot operating a lot less as much

2559
01:57:34,989 --> 01:57:36,720
as a half yeah you're

2560
01:57:36,720 --> 01:57:50,859
not producing at a profit correct I'm just trying to get a

2561
01:57:50,859 --> 01:57:52,359
sense of how

2562
01:57:52,359 --> 01:57:59,229
conservative this is if it's conservative realistic or

2563
01:57:59,229 --> 01:57:59,640
middle of the

2564
01:57:59,640 --> 01:58:07,050
road it gets more conservative as we go out okay and right

2565
01:58:07,050 --> 01:58:09,319
now we think there's

2566
01:58:09,319 --> 01:58:11,460
some haze on the crystal ball but we see it pretty good for

2567
01:58:11,460 --> 01:58:12,359
this summer and next

2568
01:58:12,359 --> 01:58:15,680
year yeah you know based on what everybody is saying and we

2569
01:58:15,680 --> 01:58:16,319
're gonna

2570
01:58:16,319 --> 01:58:19,079
watch it pretty carefully and and I'm sure we'll be back

2571
01:58:19,079 --> 01:58:20,159
talking to you about

2572
01:58:20,159 --> 01:58:23,159
how that deck actually did this summer including all our

2573
01:58:23,159 --> 01:58:24,180
resources you know

2574
01:58:24,180 --> 01:58:26,319
how's the how's the coal plant can operate we're kind of

2575
01:58:26,319 --> 01:58:26,960
counting on it

2576
01:58:26,960 --> 01:58:32,050
also to generate some revenue and and operate and it has

2577
01:58:32,050 --> 01:58:34,000
started up it's going

2578
01:58:34,000 --> 01:58:37,199
through its testing for summer it all seems to be well but

2579
01:58:37,199 --> 01:58:38,239
we really need that

2580
01:58:38,239 --> 01:58:43,630
unit also to run to you know to get the kind of performance

2581
01:58:43,630 --> 01:58:44,399
that we need for our

2582
01:58:44,399 --> 01:58:47,210
budget for this next year so and that's why we talked so

2583
01:58:47,210 --> 01:58:48,359
much about the purchase

2584
01:58:48,359 --> 01:58:55,140
power and some of the and some of the budget stuff got a

2585
01:58:55,140 --> 01:58:57,600
few other slides if I

2586
01:58:57,600 --> 01:59:00,760
jump to them and I'll happen to answer any more questions

2587
01:59:00,760 --> 01:59:02,399
but so here's our our

2588
01:59:02,399 --> 01:59:05,430
position summary we're adding two positions to the deck

2589
01:59:05,430 --> 01:59:06,279
right now it can

2590
01:59:06,279 --> 01:59:10,939
only operating two shifts and we'd like to be able to if we

2591
01:59:10,939 --> 01:59:12,199
find out this summer

2592
01:59:12,199 --> 01:59:14,800
it supports it to add a couple of additional positions

2593
01:59:14,800 --> 01:59:15,880
gives us 24 hour

2594
01:59:15,880 --> 01:59:19,039
coverage right now we'll have to you know run some overtime

2595
01:59:19,039 --> 01:59:19,880
with people in

2596
01:59:19,880 --> 01:59:23,560
order to get to that 24 hour coverage I think normally well

2597
01:59:23,560 --> 01:59:24,960
we're gonna find out

2598
01:59:24,960 --> 01:59:27,840
how how that's needed and then we've shifted a number of

2599
01:59:27,840 --> 01:59:29,000
other positions to

2600
01:59:29,000 --> 01:59:33,560
some centralized city functions about nine other positions

2601
01:59:33,560 --> 01:59:34,399
have moved have

2602
01:59:34,399 --> 01:59:40,670
moved elsewhere a few other slides that you saw probably in

2603
01:59:40,670 --> 01:59:41,159
some of the other

2604
01:59:41,159 --> 01:59:46,050
presentations today and I think Tony touched on these one

2605
01:59:46,050 --> 01:59:46,319
of the biggest

2606
01:59:46,319 --> 01:59:49,439
objectives we have is to implement the Denton renewable

2607
01:59:49,439 --> 01:59:50,760
resource plan get us to

2608
01:59:50,760 --> 01:59:54,560
100% renewable by 2020 everything is on target for that

2609
01:59:54,560 --> 01:59:58,239
where you've recommended

2610
01:59:58,239 --> 02:00:01,239
approval and the council did approve blue bales solar -

2611
02:00:01,239 --> 02:00:02,239
that's going to be a

2612
02:00:02,239 --> 02:00:04,819
great resource for us we're in the final stages of

2613
02:00:04,819 --> 02:00:06,840
evaluating the proposals from

2614
02:00:06,840 --> 02:00:11,399
the New Bronzeville's RFP they look they look really good

2615
02:00:11,399 --> 02:00:12,880
and so we're excited

2616
02:00:12,880 --> 02:00:15,300
about that and then we'll have one other tranche that will

2617
02:00:15,300 --> 02:00:16,159
be looking at some

2618
02:00:16,159 --> 02:00:19,850
coastal wind and we'll be going forward with that here when

2619
02:00:19,850 --> 02:00:21,199
we close the door on

2620
02:00:21,199 --> 02:00:25,720
the on the New Bronzeville's continuing to work on the as

2621
02:00:25,720 --> 02:00:27,560
Tony mentioned our T&D

2622
02:00:27,560 --> 02:00:32,289
program we've as you saw in the report we've downsized our

2623
02:00:32,289 --> 02:00:34,079
capital program we

2624
02:00:34,079 --> 02:00:36,859
tried to live within the financial realities that we have

2625
02:00:36,859 --> 02:00:37,720
we're trying to

2626
02:00:37,720 --> 02:00:40,590
put more cash into it over the budget horizon we're

2627
02:00:40,590 --> 02:00:41,840
actually funding a hundred

2628
02:00:41,840 --> 02:00:45,489
million dollars of cash to carry that budget plus the 24

2629
02:00:45,489 --> 02:00:46,359
million that Tony

2630
02:00:46,359 --> 02:00:51,119
talked about for this year that you'll be asked to approve

2631
02:00:51,119 --> 02:00:52,800
that transfer to us a

2632
02:00:52,800 --> 02:00:57,510
little later in the in your in your program and and and

2633
02:00:57,510 --> 02:00:59,079
really the key here

2634
02:00:59,079 --> 02:01:01,819
is maintaining competitive rates we're actually getting

2635
02:01:01,819 --> 02:01:03,000
more attractive every

2636
02:01:03,000 --> 02:01:06,779
day the competitive suppliers are hurting out there because

2637
02:01:06,779 --> 02:01:07,319
a lot of them

2638
02:01:07,319 --> 02:01:10,729
are not hedged quite as well as we are we're gonna actually

2639
02:01:10,729 --> 02:01:11,760
be hedged quite

2640
02:01:11,760 --> 02:01:15,020
well this year they're gonna be going to the face of that

2641
02:01:15,020 --> 02:01:17,000
heavy market I have one

2642
02:01:17,000 --> 02:01:20,659
company that I'm familiar with very well a private supplier

2643
02:01:20,659 --> 02:01:22,439
that their rate piece

2644
02:01:22,439 --> 02:01:26,039
other than the T&D part has gone up 48% in the last two

2645
02:01:26,039 --> 02:01:27,960
months and I think we're

2646
02:01:27,960 --> 02:01:30,729
gonna start seeing a lot of these other competitors start

2647
02:01:30,729 --> 02:01:31,800
moving to the left of

2648
02:01:31,800 --> 02:01:34,590
us and we're going to be moving to the to the other side of

2649
02:01:34,590 --> 02:01:35,399
the of the rate

2650
02:01:35,399 --> 02:01:41,069
thing and getting much more attractive so that's a key

2651
02:01:41,069 --> 02:01:43,920
driver for us is to keep

2652
02:01:43,920 --> 02:01:48,039
costs down which means we can keep rates down Denton Energy

2653
02:01:48,039 --> 02:01:48,920
Center has reached

2654
02:01:48,920 --> 02:01:52,090
mechanical completion we're running all of the tests right

2655
02:01:52,090 --> 02:01:53,319
now performance tests

2656
02:01:53,319 --> 02:01:56,779
heat rate tests emissions tests preliminary basis look

2657
02:01:56,779 --> 02:01:58,520
really really good

2658
02:01:58,520 --> 02:02:04,750
much more testing to go and we've continued our T&D group

2659
02:02:04,750 --> 02:02:05,680
our engineering

2660
02:02:05,680 --> 02:02:10,180
group to put in into service many more pieces of the T&D

2661
02:02:10,180 --> 02:02:11,960
expansion program we

2662
02:02:11,960 --> 02:02:15,350
actually have a wonderful T&D system out there it's going

2663
02:02:15,350 --> 02:02:16,640
to be a great system

2664
02:02:16,640 --> 02:02:20,159
that's going to stand the stead for Denton for many many

2665
02:02:20,159 --> 02:02:22,479
many years and and

2666
02:02:22,479 --> 02:02:25,239
very proud to be a part of that there's a lot of great work

2667
02:02:25,239 --> 02:02:26,159
that has gone on

2668
02:02:26,159 --> 02:02:28,949
there's been a massive amount accomplished over the last

2669
02:02:28,949 --> 02:02:29,560
five years

2670
02:02:29,560 --> 02:02:32,840
and folks involved in that deserved a quite a bit of credit

2671
02:02:32,840 --> 02:02:34,119
it's it to get

2672
02:02:34,119 --> 02:02:38,560
this thing done and then you heard about us moving to the

2673
02:02:38,560 --> 02:02:39,520
platinum level for

2674
02:02:39,520 --> 02:02:42,909
reliability and that's going to be even more of a focus for

2675
02:02:42,909 --> 02:02:43,880
us going forward

2676
02:02:43,880 --> 02:02:46,489
because we think that's what the customers see and that's

2677
02:02:46,489 --> 02:02:47,199
what they want

2678
02:02:47,199 --> 02:02:55,590
is increased reliability we have budgeted some money to do

2679
02:02:55,590 --> 02:02:56,840
a LED streetlight

2680
02:02:56,840 --> 02:03:01,289
retrofit program talk with the folks just even today we

2681
02:03:01,289 --> 02:03:02,359
want to come back to

2682
02:03:02,359 --> 02:03:05,979
the PUB and get your input of hey where might we spend that

2683
02:03:05,979 --> 02:03:07,359
money we're probably

2684
02:03:07,359 --> 02:03:11,189
looking at main thoroughfares and maybe some other

2685
02:03:11,189 --> 02:03:12,880
residential areas to start

2686
02:03:12,880 --> 02:03:15,449
with but maybe there's some priorities that you have or

2687
02:03:15,449 --> 02:03:16,359
some thoughts you have

2688
02:03:16,359 --> 02:03:19,560
about where increased lighting levels and more efficient

2689
02:03:19,560 --> 02:03:20,640
lighting levels would

2690
02:03:20,640 --> 02:03:26,479
make sense to you just I think that that can really be a

2691
02:03:26,479 --> 02:03:28,159
beneficial program for

2692
02:03:28,159 --> 02:03:33,090
that for the utility and for the customers so I'm gonna

2693
02:03:33,090 --> 02:03:34,399
just move past

2694
02:03:34,399 --> 02:03:42,270
this or actually something that you said during the last

2695
02:03:42,270 --> 02:03:44,279
slide you I think if I

2696
02:03:44,279 --> 02:03:46,300
heard you correctly you mentioned something about the

2697
02:03:46,300 --> 02:03:46,840
preliminary

2698
02:03:46,840 --> 02:03:52,560
emissions testing being underway so if you could clarify

2699
02:03:52,560 --> 02:03:54,159
because there had you

2700
02:03:54,159 --> 02:03:59,449
know had been some confusion about what yeah so if you

2701
02:03:59,449 --> 02:04:01,520
could say you know what

2702
02:04:01,520 --> 02:04:03,850
the difference is between this preliminary emissions

2703
02:04:03,850 --> 02:04:04,600
testing and the

2704
02:04:04,600 --> 02:04:07,590
emissions testing versus just testing the engines because

2705
02:04:07,590 --> 02:04:09,119
we had emailed back

2706
02:04:09,119 --> 02:04:13,560
and forth and yeah if you could just clarify that right and

2707
02:04:13,560 --> 02:04:14,880
maybe we weren't

2708
02:04:14,880 --> 02:04:18,800
clear way back when so when we were talking about the

2709
02:04:18,800 --> 02:04:19,760
engines testing

2710
02:04:19,760 --> 02:04:23,500
starting but testing includes tune-ups for emissions and

2711
02:04:23,500 --> 02:04:24,680
tune-ups of the engine

2712
02:04:24,680 --> 02:04:28,470
so there is an element of that before you run the official

2713
02:04:28,470 --> 02:04:29,840
formal emissions

2714
02:04:29,840 --> 02:04:33,939
tests you do run some some informal testing and we're

2715
02:04:33,939 --> 02:04:35,520
seeing some really

2716
02:04:35,520 --> 02:04:40,180
incredible results of NOx being eliminated from the the a

2717
02:04:40,180 --> 02:04:41,439
irstream as a

2718
02:04:41,439 --> 02:04:45,880
result of this SCR system we have out there so I you know

2719
02:04:45,880 --> 02:04:46,720
we'll see the

2720
02:04:46,720 --> 02:04:48,699
official results and I think I think we're all gonna be

2721
02:04:48,699 --> 02:04:49,479
pretty happy about

2722
02:04:49,479 --> 02:04:53,149
that but let's wait and see what how that turns out okay so

2723
02:04:53,149 --> 02:04:53,920
what so we'll see

2724
02:04:53,920 --> 02:04:56,920
the results of that preliminary those that preliminary

2725
02:04:56,920 --> 02:04:58,199
emissions testing that

2726
02:04:58,199 --> 02:05:01,729
that comes with the testing of the engines I mean I'll tell

2727
02:05:01,729 --> 02:05:03,119
you what I what

2728
02:05:03,119 --> 02:05:09,539
I was told so Chris you're here you can validate so we took

2729
02:05:09,539 --> 02:05:11,760
a look at the air

2730
02:05:11,760 --> 02:05:17,729
emissions right from the deck 88 parts per billion NOx and

2731
02:05:17,729 --> 02:05:18,640
then after the

2732
02:05:18,640 --> 02:05:22,439
treatment by the SCR's less than one part per billion so we

2733
02:05:22,439 --> 02:05:23,680
went from 88 to

2734
02:05:23,680 --> 02:05:27,439
less than one so I've that just seemed like a dramatic

2735
02:05:27,439 --> 02:05:28,920
result but let's see how

2736
02:05:28,920 --> 02:05:32,069
the official test turn out so that kind of gives us some

2737
02:05:32,069 --> 02:05:33,279
indication that the

2738
02:05:33,279 --> 02:05:36,760
engines and the system is working and that's for NOx for

2739
02:05:36,760 --> 02:05:37,920
not you said and did

2740
02:05:37,920 --> 02:05:43,119
you do for VOC's no I don't know do we

2741
02:05:44,199 --> 02:05:52,000
will come up who's this young man

2742
02:05:54,199 --> 02:05:58,340
his limit yes sir we've started the the emission testing so

2743
02:05:58,340 --> 02:05:59,479
if you we sent out

2744
02:05:59,479 --> 02:06:03,460
the the testing plan so all of the eight or nine components

2745
02:06:03,460 --> 02:06:04,560
that are in our air

2746
02:06:04,560 --> 02:06:06,960
permit are all being tested at the same time so at this

2747
02:06:06,960 --> 02:06:07,960
point we've completed

2748
02:06:07,960 --> 02:06:11,460
the hundred percent test which is required by the TCEQ so

2749
02:06:11,460 --> 02:06:12,520
some of the data

2750
02:06:12,520 --> 02:06:15,350
is preliminary you can see it coming out they still have to

2751
02:06:15,350 --> 02:06:16,479
do some calculations

2752
02:06:16,479 --> 02:06:19,699
and make those official and we'll have that in about ten

2753
02:06:19,699 --> 02:06:21,720
days ten days the some

2754
02:06:21,720 --> 02:06:24,750
of the tests the particulate matter actually has to dry in

2755
02:06:24,750 --> 02:06:25,600
a lab for eight

2756
02:06:25,600 --> 02:06:27,710
days so that's why there would be about a two-week

2757
02:06:27,710 --> 02:06:29,039
turnaround till we'll get the

2758
02:06:29,039 --> 02:06:32,159
draft report so we'll get that all back and then we'll

2759
02:06:32,159 --> 02:06:33,560
present that to the PEB

2760
02:06:33,560 --> 02:06:36,319
and the council when we can get on the agenda there but but

2761
02:06:36,319 --> 02:06:37,439
that testing is

2762
02:06:37,439 --> 02:06:41,729
ongoing we'll have about eight more days so we're actually

2763
02:06:41,729 --> 02:06:42,359
testing some of the

2764
02:06:42,359 --> 02:06:45,390
other engine loads in the same manner that we had to do for

2765
02:06:45,390 --> 02:06:46,359
the TCEQ so we'll

2766
02:06:46,359 --> 02:06:49,479
have a full spectrum of tests that we'll be able to report

2767
02:06:49,479 --> 02:06:50,880
that data okay

2768
02:06:50,880 --> 02:06:53,880
thank you thank you that makes sense thanks

2769
02:06:59,000 --> 02:07:02,000
everything's looking good so the numbers are coming in

2770
02:07:02,000 --> 02:07:03,159
there have been no

2771
02:07:03,159 --> 02:07:06,470
concern so we have as you know Wardzilla has to make ready

2772
02:07:06,470 --> 02:07:07,199
they have to make

2773
02:07:07,199 --> 02:07:09,810
right they have to meet the limits there have been no

2774
02:07:09,810 --> 02:07:10,560
issues there they're

2775
02:07:10,560 --> 02:07:14,119
they're coming in at numbers that are that are incredible

2776
02:07:14,119 --> 02:07:15,159
so so they're

2777
02:07:15,159 --> 02:07:19,479
meeting the numbers that's specified in the contract

2778
02:07:19,479 --> 02:07:24,680
excellent things see why I don't have to actually know

2779
02:07:24,680 --> 02:07:25,720
everything because we have

2780
02:07:25,720 --> 02:07:32,600
somebody like Chris on staff okay so I was moving along and

2781
02:07:32,600 --> 02:07:34,119
here's our capital

2782
02:07:34,119 --> 02:07:37,140
plan and I think the rest of this report will talk about

2783
02:07:37,140 --> 02:07:39,000
the capital program

2784
02:07:39,000 --> 02:07:44,550
169 million over the five-year planning horizon 107 of it

2785
02:07:44,550 --> 02:07:46,319
paid for by revenue

2786
02:07:46,319 --> 02:07:50,760
and that means about 35% of it at this point we're looking

2787
02:07:50,760 --> 02:07:51,680
at needing to

2788
02:07:51,680 --> 02:07:54,989
finance and we're gonna try to be minimizing that because

2789
02:07:54,989 --> 02:07:55,880
as was pointed

2790
02:07:55,880 --> 02:07:58,199
out earlier that you know we have a significant debt load

2791
02:07:58,199 --> 02:07:59,920
out there and and

2792
02:07:59,920 --> 02:08:04,380
part of it is not spending as much and what you do spend we

2793
02:08:04,380 --> 02:08:06,319
're trying to write

2794
02:08:06,319 --> 02:08:09,329
the check for and not borrow that money so it's kind of a

2795
02:08:09,329 --> 02:08:11,159
two-part strategy and

2796
02:08:11,159 --> 02:08:14,399
and again I appreciate all the folks at DMA that are

2797
02:08:14,399 --> 02:08:16,000
working with us hard to

2798
02:08:16,000 --> 02:08:20,220
try to recast the program in a way that doesn't adversely

2799
02:08:20,220 --> 02:08:21,119
impact our our

2800
02:08:21,119 --> 02:08:25,380
transmission distribution system and I think we've kind of

2801
02:08:25,380 --> 02:08:26,760
accomplished that at

2802
02:08:26,760 --> 02:08:29,090
this point I'm glad you said that because that was going to

2803
02:08:29,090 --> 02:08:29,920
be my question

2804
02:08:29,920 --> 02:08:33,640
right that's a pretty large reduction but it is not going

2805
02:08:33,640 --> 02:08:34,039
to impact

2806
02:08:34,039 --> 02:08:37,930
reliability right so that's also my concern and I've tried

2807
02:08:37,930 --> 02:08:39,479
to evaluate that

2808
02:08:39,479 --> 02:08:44,130
every different approach that I could and I feel good at

2809
02:08:44,130 --> 02:08:45,520
this point that a

2810
02:08:45,520 --> 02:08:49,090
lot of the program was getting us ready for five ten and

2811
02:08:49,090 --> 02:08:50,640
even twenty years down

2812
02:08:50,640 --> 02:08:55,079
the road and we could you know it just made sense to do a

2813
02:08:55,079 --> 02:08:55,800
lot of things at the

2814
02:08:55,800 --> 02:08:59,079
same time if you could if you had a big bank account and

2815
02:08:59,079 --> 02:08:59,600
there's some

2816
02:08:59,600 --> 02:09:02,829
efficiencies and and just going forward and building a lot

2817
02:09:02,829 --> 02:09:03,960
of substations and

2818
02:09:03,960 --> 02:09:08,520
and lines and so forth but at the end of the day I think at

2819
02:09:08,520 --> 02:09:09,119
the end these are

2820
02:09:09,119 --> 02:09:12,130
this will be a cost-effective way to do this because we're

2821
02:09:12,130 --> 02:09:13,239
not actually paying

2822
02:09:13,239 --> 02:09:17,300
rent on facilities that aren't really critical to serving

2823
02:09:17,300 --> 02:09:18,720
customers for that

2824
02:09:18,720 --> 02:09:22,529
five ten and twenty year period so but there's still a lot

2825
02:09:22,529 --> 02:09:23,319
to do our folks

2826
02:09:23,319 --> 02:09:30,100
will be busy for the next five years so I think we have

2827
02:09:30,100 --> 02:09:31,359
some nice copies of

2828
02:09:31,359 --> 02:09:37,020
these maps Mary so it might be a little difficult to see so

2829
02:09:37,020 --> 02:09:38,279
we've got a couple

2830
02:09:38,279 --> 02:09:40,609
of maps for you this you probably used to this if you've

2831
02:09:40,609 --> 02:09:41,159
had our budget

2832
02:09:41,159 --> 02:09:44,430
presentations in the past these are our feeder extensions

2833
02:09:44,430 --> 02:09:46,840
and improvements so by

2834
02:09:46,840 --> 02:09:50,670
color coding you're looking at the seven different major

2835
02:09:50,670 --> 02:09:51,760
feeder improvement

2836
02:09:51,760 --> 02:09:55,720
programs the one I like is this one this shows our planned

2837
02:09:55,720 --> 02:09:56,800
residential and

2838
02:09:56,800 --> 02:09:59,180
commercial developments sometimes you might be wondering

2839
02:09:59,180 --> 02:10:00,199
hey what's going on

2840
02:10:00,199 --> 02:10:04,159
in Denton and this second map is actually very interesting

2841
02:10:04,159 --> 02:10:04,640
you can look

2842
02:10:04,640 --> 02:10:16,520
at the key on the left and residential commercial programs

2843
02:10:16,520 --> 02:10:17,000
that are being

2844
02:10:17,000 --> 02:10:22,670
planned out there so let's see Jerry anything you want to

2845
02:10:22,670 --> 02:10:23,960
add about what you

2846
02:10:23,960 --> 02:10:29,079
have to you good okay all right well there's a lot of work

2847
02:10:29,079 --> 02:10:30,760
here and there's a

2848
02:10:30,760 --> 02:10:33,560
lot of planning you know our number one priority beyond

2849
02:10:33,560 --> 02:10:34,399
keeping the lights on

2850
02:10:34,399 --> 02:10:38,960
almost every minute of the day is serving new customers so

2851
02:10:38,960 --> 02:10:39,680
if you look at

2852
02:10:39,680 --> 02:10:44,659
the map that that's the red the green and the blue you can

2853
02:10:44,659 --> 02:10:45,279
actually see the

2854
02:10:45,279 --> 02:10:48,159
things that are happening right now all the different new

2855
02:10:48,159 --> 02:10:50,359
customers that our CIP

2856
02:10:50,359 --> 02:10:54,800
budget needs to extend service to those customers and it's

2857
02:10:54,800 --> 02:10:55,359
a lot of

2858
02:10:55,359 --> 02:10:58,600
information in a short period so down the road if there's

2859
02:10:58,600 --> 02:10:59,840
questions and you

2860
02:10:59,840 --> 02:11:02,579
guys want to talk any more about some of these things we

2861
02:11:02,579 --> 02:11:03,399
can we can program that

2862
02:11:03,399 --> 02:11:05,800
for you

2863
02:11:13,000 --> 02:11:14,180
this one's a little more clear up there you've seen this

2864
02:11:14,180 --> 02:11:17,560
before this is our the

2865
02:11:17,560 --> 02:11:22,000
major transmission and substation facilities you know the

2866
02:11:22,000 --> 02:11:23,399
biggest change

2867
02:11:23,399 --> 02:11:28,189
in our system was moving from 69 kb to 138 that was a

2868
02:11:28,189 --> 02:11:28,800
massive undertaking

2869
02:11:28,800 --> 02:11:33,439
required us to upsize a lot of facilities you know replace

2870
02:11:33,439 --> 02:11:34,880
older 69 kb

2871
02:11:34,880 --> 02:11:39,560
substations that were not capable of being run at the 138

2872
02:11:39,560 --> 02:11:42,560
so and as we talked

2873
02:11:42,560 --> 02:11:46,729
before the big purpose of this particular arrangement is

2874
02:11:46,729 --> 02:11:47,720
for Denton to

2875
02:11:47,720 --> 02:11:50,960
be a conduit of power to folks to the east of us when you

2876
02:11:50,960 --> 02:11:51,680
look at the growth

2877
02:11:51,680 --> 02:11:55,720
rates of the you know the Prosper's and the Frisco's and it

2878
02:11:55,720 --> 02:11:56,840
's a pretty amazing

2879
02:11:56,840 --> 02:12:00,609
and I think Denton is slowly moving in that direction our

2880
02:12:00,609 --> 02:12:02,159
growth rates are are

2881
02:12:02,159 --> 02:12:04,779
moving forward as you can tell from that when that one map

2882
02:12:04,779 --> 02:12:05,779
that showed all of the

2883
02:12:05,779 --> 02:12:09,659
new things happening in town so so still a lot of work out

2884
02:12:09,659 --> 02:12:11,479
there I like this thing

2885
02:12:11,479 --> 02:12:15,319
this is in your packet today it's also in the presentation

2886
02:12:15,319 --> 02:12:16,119
if you want to know

2887
02:12:16,119 --> 02:12:18,260
when a certain substation is going to be built what's the

2888
02:12:18,260 --> 02:12:19,119
time frames for that

2889
02:12:19,119 --> 02:12:22,739
you can follow the money you can see Hickory will be

2890
02:12:22,739 --> 02:12:24,720
starting hard toward

2891
02:12:24,720 --> 02:12:27,840
that in 2019 I think Hickory is going to be a major

2892
02:12:27,840 --> 02:12:29,960
important substation that's

2893
02:12:29,960 --> 02:12:33,600
going to help us you know enhance the capacity and

2894
02:12:33,600 --> 02:12:34,920
reliability of the inner

2895
02:12:34,920 --> 02:12:38,310
city in Denton and so I'm looking forward to seeing that

2896
02:12:38,310 --> 02:12:39,279
project moving

2897
02:12:39,279 --> 02:12:46,539
forward I'm gonna ask a question wasn't maybe I'm getting

2898
02:12:46,539 --> 02:12:47,800
my substations mixed

2899
02:12:47,800 --> 02:12:52,079
up wasn't the Hickory gonna be a larger price tag than that

2900
02:12:52,079 --> 02:12:53,479
am I am I mixing up

2901
02:12:53,479 --> 02:13:00,279
my substations oh gotcha

2902
02:13:01,439 --> 02:13:07,359
good point very good question so so all this information is

2903
02:13:07,359 --> 02:13:08,560
there I it wouldn't

2904
02:13:08,560 --> 02:13:11,380
make sense for me probably to go through it at this point

2905
02:13:11,380 --> 02:13:12,600
in time but we're

2906
02:13:12,600 --> 02:13:15,760
always available to you have questions you know shoot them

2907
02:13:15,760 --> 02:13:16,800
to us and we'll get

2908
02:13:16,800 --> 02:13:19,979
you the responses so I say still a lot of a lot of work

2909
02:13:19,979 --> 02:13:21,439
that we're going to be

2910
02:13:21,439 --> 02:13:26,869
undertaking going forward so and with that I'll turn it

2911
02:13:26,869 --> 02:13:30,560
back to Tony

2912
02:13:31,720 --> 02:13:35,340
so mr. chairman and board members just as a reminder we do

2913
02:13:35,340 --> 02:13:37,239
have our consultants

2914
02:13:37,239 --> 02:13:42,949
here they're available if you if you have any questions I

2915
02:13:42,949 --> 02:13:45,800
do want to

2916
02:13:51,439 --> 02:13:57,140
go back to the slide again just to reiterate our

2917
02:13:57,140 --> 02:14:00,159
recommendations today for

2918
02:14:00,159 --> 02:14:05,029
you include the payoff of twenty eight point six million

2919
02:14:05,029 --> 02:14:06,600
dollars in that TMPA

2920
02:14:06,600 --> 02:14:10,699
related callable debt what we call the scrubber debt that

2921
02:14:10,699 --> 02:14:11,880
would be part of the

2922
02:14:11,880 --> 02:14:17,600
recommendation no changes to to the base rates there is a

2923
02:14:17,600 --> 02:14:18,680
recommendation

2924
02:14:18,680 --> 02:14:25,489
recommended suspension of the tcrf that as we talked about

2925
02:14:25,489 --> 02:14:26,880
the impact to

2926
02:14:26,880 --> 02:14:30,069
residential customers is about three and a half percent

2927
02:14:30,069 --> 02:14:31,159
decrease in rates

2928
02:14:31,159 --> 02:14:37,090
maintaining the ECA at zero three four one and in addition

2929
02:14:37,090 --> 02:14:38,239
to that we would

2930
02:14:38,239 --> 02:14:42,289
recommend making a change to these ECA rate ordinance that

2931
02:14:42,289 --> 02:14:43,520
would allow us to

2932
02:14:43,520 --> 02:14:51,659
include the net deck expenses in that calculation so and

2933
02:14:51,659 --> 02:14:54,880
and finally the the

2934
02:14:54,880 --> 02:14:58,069
other recommendation that's included in the forecast is

2935
02:14:58,069 --> 02:15:00,760
that we would cash fund

2936
02:15:00,760 --> 02:15:08,470
certainly all of the distribution related projects for DME

2937
02:15:08,470 --> 02:15:09,720
and then we

2938
02:15:09,720 --> 02:15:13,960
would use a combination of revenue funding and debt funding

2939
02:15:13,960 --> 02:15:14,439
of the

2940
02:15:14,439 --> 02:15:18,039
transmission debt going forward at least within that five-

2941
02:15:18,039 --> 02:15:19,840
year window so that

2942
02:15:19,840 --> 02:15:24,479
that wraps up our recommendations for you certainly if you

2943
02:15:24,479 --> 02:15:25,039
have any questions

2944
02:15:25,039 --> 02:15:30,949
of staff or of our consultants we're here to for that

2945
02:15:30,949 --> 02:15:31,640
purpose

2946
02:15:31,640 --> 02:15:37,869
chairman questions I know that's and that's a lot of a lot

2947
02:15:37,869 --> 02:15:39,600
of information

2948
02:15:39,600 --> 02:15:43,199
this is not the last time we'll see this either before we

2949
02:15:43,199 --> 02:15:44,800
that's correct and just

2950
02:15:44,800 --> 02:15:47,130
so the board knows we will be presenting this to the

2951
02:15:47,130 --> 02:15:49,439
council tomorrow night along

2952
02:15:49,439 --> 02:15:52,449
with the with the budget amendment that we're also

2953
02:15:52,449 --> 02:15:54,520
proposing for you tonight the

2954
02:15:54,520 --> 02:15:56,840
council will also consider that tomorrow we did let the

2955
02:15:56,840 --> 02:15:57,760
council know that we were

2956
02:15:57,760 --> 02:16:00,310
making this presentation and any recommendation from the

2957
02:16:00,310 --> 02:16:01,000
board we would

2958
02:16:01,000 --> 02:16:05,739
let them advise them of that tomorrow okay yes I like to

2959
02:16:05,739 --> 02:16:06,800
ask the consultants

2960
02:16:06,800 --> 02:16:10,560
just because because they're here I'd be curious to know

2961
02:16:10,560 --> 02:16:13,359
your take on the role of

2962
02:16:13,359 --> 02:16:20,569
the deck in debt reduction versus the role of our solar and

2963
02:16:20,569 --> 02:16:22,760
wind contracts and

2964
02:16:22,760 --> 02:16:29,319
paying into that that debt reduction

2965
02:16:31,000 --> 02:16:40,040
good evening specifically with regard to the debt reduction

2966
02:16:40,040 --> 02:16:40,760
that's not something

2967
02:16:40,760 --> 02:16:44,479
that we've looked at we were asked to look at projections

2968
02:16:44,479 --> 02:16:46,600
for deck revenue and

2969
02:16:46,600 --> 02:16:50,059
the net effect of that so that's what we looked at and we

2970
02:16:50,059 --> 02:16:51,280
had some discussions

2971
02:16:51,280 --> 02:16:56,000
with regard to financial projections related to market

2972
02:16:56,000 --> 02:16:57,040
expectations and

2973
02:16:57,040 --> 02:17:02,959
forward prices going out into time so any translation of

2974
02:17:02,959 --> 02:17:04,680
that into the effect

2975
02:17:04,680 --> 02:17:07,000
on debt is something that your staff has done so that wasn

2976
02:17:07,000 --> 02:17:07,879
't that wasn't sort of

2977
02:17:07,879 --> 02:17:17,569
an arm-per-tip yeah yes so what so what what do you see as

2978
02:17:17,569 --> 02:17:19,719
the cycle for the

2979
02:17:19,719 --> 02:17:23,899
life cycle of this kind of gas plant in terms of

2980
02:17:23,899 --> 02:17:26,879
profitability that depends on

2981
02:17:26,879 --> 02:17:32,549
where prices are going to go in our discussions with the

2982
02:17:32,549 --> 02:17:34,360
staff you know one

2983
02:17:34,360 --> 02:17:37,360
of the points we made is that this is probably the greatest

2984
02:17:37,360 --> 02:17:37,879
period of

2985
02:17:37,879 --> 02:17:41,850
uncertainty we've seen in the market about 20 years George

2986
02:17:41,850 --> 02:17:43,000
had indicated

2987
02:17:43,000 --> 02:17:46,319
you've had 5,000 megawatts of generation that has been

2988
02:17:46,319 --> 02:17:47,319
retired or threatened to

2989
02:17:47,319 --> 02:17:50,860
be retired a lot of changeover in the technology I think

2990
02:17:50,860 --> 02:17:51,600
this is a point that

2991
02:17:51,600 --> 02:17:55,530
Neil has made recently which is that 20 years ago you had a

2992
02:17:55,530 --> 02:17:56,719
substantial change

2993
02:17:56,719 --> 02:18:00,780
in technology when gas was coming in to really compete with

2994
02:18:00,780 --> 02:18:02,200
coal now you've got

2995
02:18:02,200 --> 02:18:05,809
renewables coming in competing with gas and coal is going

2996
02:18:05,809 --> 02:18:06,559
out so that

2997
02:18:06,559 --> 02:18:11,000
uncertainty makes it very challenging to do financial

2998
02:18:11,000 --> 02:18:13,000
projections and if you look

2999
02:18:13,000 --> 02:18:15,409
at some of the projections that were in the in the

3000
02:18:15,409 --> 02:18:17,000
presentation those reflect

3001
02:18:17,000 --> 02:18:20,959
sort of the lower gas case that was in the Brattle report

3002
02:18:20,959 --> 02:18:22,120
the lower gas case

3003
02:18:22,120 --> 02:18:28,520
that was in our renewable resource presentation as well so

3004
02:18:28,520 --> 02:18:29,479
I think that's

3005
02:18:29,479 --> 02:18:34,909
something that is likely to be sustained there's a lot of

3006
02:18:34,909 --> 02:18:36,159
gas that doesn't even

3007
02:18:36,159 --> 02:18:39,639
have a place to go right now in West Texas because so much

3008
02:18:39,639 --> 02:18:40,719
the the pervian is

3009
02:18:40,719 --> 02:18:45,250
just a huge activity of new drilling so I think that low

3010
02:18:45,250 --> 02:18:46,840
gas case that we had

3011
02:18:46,840 --> 02:18:52,469
integrated into our presentation in our projections I think

3012
02:18:52,469 --> 02:18:54,000
is the best case to

3013
02:18:54,000 --> 02:18:57,120
be considered going forward right now you've got this

3014
02:18:57,120 --> 02:18:58,239
uncertainty a lot of

3015
02:18:58,239 --> 02:19:01,239
fear in the market that's driving prices up over the next

3016
02:19:01,239 --> 02:19:02,239
couple of years in the

3017
02:19:02,239 --> 02:19:06,719
foreign markets that can always happen again but I think

3018
02:19:06,719 --> 02:19:07,920
how George's

3019
02:19:07,920 --> 02:19:10,659
projections had gone to resolving to a lower gas case I

3020
02:19:10,659 --> 02:19:11,559
think is the best

3021
02:19:11,559 --> 02:19:16,920
estimation going forward okay thank you thanks a lot

3022
02:19:21,200 --> 02:19:27,440
Mr. Chairman any other questions or questions from anyone

3023
02:19:27,440 --> 02:19:30,120
any suggestions

3024
02:19:30,120 --> 02:19:35,040
directions we want to give at this point

3025
02:19:37,239 --> 02:19:42,680
I think do you want to see these easy come back more often

3026
02:19:42,680 --> 02:19:43,239
in the future

3027
02:19:43,239 --> 02:19:44,870
yes ma'am certainly our recommendation is that that would

3028
02:19:44,870 --> 02:19:45,399
come back to you

3029
02:19:45,399 --> 02:19:49,280
quarterly and also to the council on a quarterly basis yes

3030
02:19:49,280 --> 02:19:51,079
correct yeah I think

3031
02:19:51,079 --> 02:19:58,959
that probably has been the ECA has been such a stable at a

3032
02:19:58,959 --> 02:20:00,159
such a stable level

3033
02:20:00,159 --> 02:20:03,170
for so long and it really had didn't did not need to be

3034
02:20:03,170 --> 02:20:05,600
addressed often and I

3035
02:20:05,600 --> 02:20:09,280
think that's a good suggestion I think we'll see a lot more

3036
02:20:09,280 --> 02:20:09,479
volatility so we

3037
02:20:09,479 --> 02:20:17,239
may be forced to look at it okay all right thank you Tony

3038
02:20:17,239 --> 02:20:19,520
thank you

3039
02:20:22,360 --> 02:20:28,290
bonus points for anybody who can refold the maps I could

3040
02:20:28,290 --> 02:20:34,479
very good okay okay

3041
02:20:35,719 --> 02:20:39,680
so we can now go into the regular meeting unless I'll let y

3042
02:20:39,680 --> 02:20:41,000
'all make the

3043
02:20:41,000 --> 02:20:44,649
call if you want to take a break and then come back in

3044
02:20:44,649 --> 02:20:46,479
about 10 minutes or

3045
02:20:46,479 --> 02:20:54,750
if y'all just want to push through the agenda push through

3046
02:20:54,750 --> 02:20:57,600
okay very good okay

3047
02:20:57,600 --> 02:21:05,239
in our regular meeting then we have a consent agenda we

3048
02:21:05,239 --> 02:21:08,559
have four items on the

3049
02:21:08,559 --> 02:21:13,309
consent agenda for consideration is there any member of the

3050
02:21:13,309 --> 02:21:15,000
board that would

3051
02:21:15,000 --> 02:21:18,629
like to have any of these items pulled for individual

3052
02:21:18,629 --> 02:21:20,959
consideration don't throw

3053
02:21:20,959 --> 02:21:30,360
anything at me B it's a quick question okay all right so B

3054
02:21:30,360 --> 02:21:33,399
is pulled any

3055
02:21:33,399 --> 02:21:43,120
individual member who would like to pull items a C or D off

3056
02:21:43,120 --> 02:21:46,079
the consent okay

3057
02:21:46,079 --> 02:21:50,959
hearing none is there a motion then for the remaining

3058
02:21:50,959 --> 02:21:54,059
consent agenda items a C

3059
02:21:54,059 --> 02:21:59,729
and D move approval have a motion and the second any

3060
02:21:59,729 --> 02:22:01,799
discussion all in favor

3061
02:22:01,799 --> 02:22:09,229
say aye any opposed okay item B you said who's here for B

3062
02:22:09,229 --> 02:22:11,680
anybody here for B it's

3063
02:22:11,680 --> 02:22:16,209
a really quick question Ken the price differential was so

3064
02:22:16,209 --> 02:22:17,920
huge how do we know

3065
02:22:17,920 --> 02:22:23,879
they can really do it for 297,000

3066
02:22:29,319 --> 02:22:33,790
those are usually always a mystery for all of us also but

3067
02:22:33,790 --> 02:22:35,479
this company in

3068
02:22:35,479 --> 02:22:40,059
city form was formed in 1980 and they have done millions

3069
02:22:40,059 --> 02:22:41,559
and millions of feet

3070
02:22:41,559 --> 02:22:45,600
of this all over the US and outside the country so we have

3071
02:22:45,600 --> 02:22:48,159
absolutely no doubt

3072
02:22:50,079 --> 02:22:56,600
and they're from Missouri I'll move approval okay

3073
02:22:56,600 --> 02:23:00,569
quick question was answered and Susan's made a motion to

3074
02:23:00,569 --> 02:23:01,700
approve is there a

3075
02:23:01,700 --> 02:23:08,639
second second Charlie any discussion all in favor say aye

3076
02:23:08,639 --> 02:23:13,159
any opposed same side

3077
02:23:13,159 --> 02:23:16,979
okay under items for individual consideration we have the

3078
02:23:16,979 --> 02:23:18,200
minutes of the

3079
02:23:18,200 --> 02:23:25,340
public utility board of May the 7th 2018 that it part of

3080
02:23:25,340 --> 02:23:27,559
your backup are there

3081
02:23:27,559 --> 02:23:35,940
any changes questions suggestions on those minutes hearing

3082
02:23:35,940 --> 02:23:37,680
none is there a

3083
02:23:37,680 --> 02:23:43,350
motion then to approve the minutes as presented recommend

3084
02:23:43,350 --> 02:23:44,959
approval and a

3085
02:23:44,959 --> 02:23:49,600
second second and a second any discussion on those all in

3086
02:23:49,600 --> 02:23:50,239
favor say aye

3087
02:23:50,239 --> 02:23:55,940
any opposed same sign item number B which is to consider a

3088
02:23:55,940 --> 02:23:57,680
recommendation to

3089
02:23:57,680 --> 02:24:01,469
adopt an ordinance of the city of Denton Texas amending the

3090
02:24:01,469 --> 02:24:03,760
fiscal year 2017 18

3091
02:24:03,760 --> 02:24:07,409
budget an annual program of services of the city of Denton

3092
02:24:07,409 --> 02:24:08,399
to allow for an

3093
02:24:08,399 --> 02:24:12,309
adjustment to the electric fund of 24 million dollars for

3094
02:24:12,309 --> 02:24:13,280
the purpose of

3095
02:24:13,280 --> 02:24:18,700
funding capital improvement projects and solid waste fund

3096
02:24:18,700 --> 02:24:21,399
of seven hundred and seventy four thousand six hundred

3097
02:24:21,399 --> 02:24:23,100
eighty two dollars for the purpose of funding a reimburse

3098
02:24:23,100 --> 02:24:27,879
ment to electric declaring a municipal purpose providing a

3099
02:24:27,879 --> 02:24:31,350
severability clause providing an open meetings clause

3100
02:24:31,350 --> 02:24:32,840
providing for an effective

3101
02:24:32,840 --> 02:24:37,440
date so mr. chairman Tony pointed director finance just

3102
02:24:37,440 --> 02:24:38,159
really quickly we

3103
02:24:38,159 --> 02:24:42,979
talked at length about the 24 million dollars we would have

3104
02:24:42,979 --> 02:24:44,280
to amend the

3105
02:24:44,280 --> 02:24:48,209
budget to have the authority to then transfer that from the

3106
02:24:48,209 --> 02:24:49,479
operating budget

3107
02:24:49,479 --> 02:24:53,399
to the capital improvement program if part of your backup

3108
02:24:53,399 --> 02:24:54,360
we've included with

3109
02:24:54,360 --> 02:24:57,360
you the detailed listing of the projects that would be

3110
02:24:57,360 --> 02:24:59,399
funded total of 34 million

3111
02:24:59,399 --> 02:25:04,229
the remaining 10 million would come from the the excess

3112
02:25:04,229 --> 02:25:06,159
revenue bonds from the

3113
02:25:06,159 --> 02:25:09,940
deck to complete that that program of 34 million many of

3114
02:25:09,940 --> 02:25:11,239
those projects are

3115
02:25:11,239 --> 02:25:14,440
actually already underway and are in desperate need of this

3116
02:25:14,440 --> 02:25:15,799
funding in

3117
02:25:15,799 --> 02:25:20,840
addition this budget amendment also amends the solid waste

3118
02:25:20,840 --> 02:25:22,159
fund to have the

3119
02:25:22,159 --> 02:25:26,190
appropriation to be able to transfer the portion of the

3120
02:25:26,190 --> 02:25:28,760
substation project that

3121
02:25:28,760 --> 02:25:31,920
does not include these missus primarily the land back over

3122
02:25:31,920 --> 02:25:33,040
to the electric fund

3123
02:25:33,040 --> 02:25:36,239
slightly or slightly over seven hundred thousand dollars

3124
02:25:36,239 --> 02:25:38,200
and just so the board

3125
02:25:38,200 --> 02:25:41,350
knows that's already factored into the performer for

3126
02:25:41,350 --> 02:25:42,959
electric again a small

3127
02:25:42,959 --> 02:25:47,430
amount but it's already part of that as well so if you have

3128
02:25:47,430 --> 02:25:48,399
any questions I'll

3129
02:25:48,399 --> 02:25:52,280
be happy to answer any questions you may have just a

3130
02:25:52,280 --> 02:25:54,559
question on the the original

3131
02:25:54,559 --> 02:26:00,440
54 million dollars what was the what was the plan as far as

3132
02:26:00,440 --> 02:26:01,120
how much of that was

3133
02:26:01,120 --> 02:26:05,120
debt how much was revenue funded on that the entire amount

3134
02:26:05,120 --> 02:26:06,399
would have been CEOs

3135
02:26:06,399 --> 02:26:11,520
okay that was the plan so we're basically taking that

3136
02:26:11,520 --> 02:26:12,799
essentially to 10

3137
02:26:12,799 --> 02:26:19,280
million we're training we're using the decks CEO that's 10

3138
02:26:19,280 --> 02:26:19,959
million of that

3139
02:26:19,959 --> 02:26:24,510
revenue bonds revenue bonds yes sir we would use that to

3140
02:26:24,510 --> 02:26:29,659
fund that CIP okay so

3141
02:26:29,659 --> 02:26:33,159
that's a net savings of 44 million dollars in debt

3142
02:26:33,159 --> 02:26:36,559
basically that's correct

3143
02:26:36,559 --> 02:26:44,079
all right any other questions no is there a motion then on

3144
02:26:44,079 --> 02:26:47,659
item B

3145
02:26:47,659 --> 02:26:55,020
approval we have a motion and to approve in a second any

3146
02:26:55,020 --> 02:26:57,840
discussion all in favor

3147
02:26:57,840 --> 02:27:05,040
say aye opposed same sign okay item C is to consider

3148
02:27:05,040 --> 02:27:06,840
recommending adoption of an

3149
02:27:06,840 --> 02:27:10,350
ordinance in the city of Denton Texas the Texas Home Rule

3150
02:27:10,350 --> 02:27:11,680
municipal corporation

3151
02:27:11,680 --> 02:27:15,420
authorizing the city manager to execute a contract for odor

3152
02:27:15,420 --> 02:27:16,319
neutralizer

3153
02:27:16,319 --> 02:27:20,270
chemicals with probe America ink for the landfill providing

3154
02:27:20,270 --> 02:27:21,319
for the expenditure

3155
02:27:21,319 --> 02:27:26,149
funds therefore and providing an effective date in the

3156
02:27:26,149 --> 02:27:27,799
three-year not to

3157
02:27:27,799 --> 02:27:31,760
exceed amount of 130 thousand dollars good evening members

3158
02:27:31,760 --> 02:27:32,239
of the board my

3159
02:27:32,239 --> 02:27:34,979
name is Ethan Cox I'm the director of solid waste this is

3160
02:27:34,979 --> 02:27:35,959
an item that we had

3161
02:27:35,959 --> 02:27:38,290
brought forward for your consideration about a month ago it

3162
02:27:38,290 --> 02:27:39,200
's backed by popular

3163
02:27:39,200 --> 02:27:42,200
demand I appreciate you have some very informative

3164
02:27:42,200 --> 02:27:43,879
questions last time and I

3165
02:27:43,879 --> 02:27:47,059
apologize for not being prepared to answer those so we did

3166
02:27:47,059 --> 02:27:47,719
go back and

3167
02:27:47,719 --> 02:27:52,340
review some of the safety and concerns regarding the use of

3168
02:27:52,340 --> 02:27:53,680
this chemical the

3169
02:27:53,680 --> 02:27:57,120
chemical again is is aero pure it's brought forward by a

3170
02:27:57,120 --> 02:27:58,559
firm known as probe

3171
02:27:58,559 --> 02:28:01,559
America what I've included in your packet tonight is the

3172
02:28:01,559 --> 02:28:02,440
safety data sheet

3173
02:28:02,440 --> 02:28:04,979
that that's basically put together for any firm that

3174
02:28:04,979 --> 02:28:06,440
manufacturers or utilizes

3175
02:28:06,440 --> 02:28:09,479
chemicals there's a few sections in there that if you're

3176
02:28:09,479 --> 02:28:10,399
interested I would

3177
02:28:10,399 --> 02:28:13,790
emphasize kind of taking a look at namely that section two

3178
02:28:13,790 --> 02:28:14,639
that is basically

3179
02:28:14,639 --> 02:28:17,379
identifying is this a hazardous substance it is most

3180
02:28:17,379 --> 02:28:18,799
definitely not in

3181
02:28:18,799 --> 02:28:21,879
addition sections eight which requires personal protection

3182
02:28:21,879 --> 02:28:22,760
for handling this

3183
02:28:22,760 --> 02:28:26,000
material this material requires no personal protection for

3184
02:28:26,000 --> 02:28:26,879
use of our staff

3185
02:28:26,879 --> 02:28:29,879
and then section 11 which is all the toxicological

3186
02:28:29,879 --> 02:28:31,639
information just to kind

3187
02:28:31,639 --> 02:28:35,270
of briefly go through some of the high points here the

3188
02:28:35,270 --> 02:28:36,680
arrow pure mixture is

3189
02:28:36,680 --> 02:28:40,530
100% biodegradable it's non carcinogenic non-acid non

3190
02:28:40,530 --> 02:28:42,479
acidic non hazardous

3191
02:28:42,479 --> 02:28:45,479
non-irritant it's also safe for use in the food industry

3192
02:28:45,479 --> 02:28:46,959
there was one other

3193
02:28:46,959 --> 02:28:50,770
firm that put in for this I do not have the SDS sheet for

3194
02:28:50,770 --> 02:28:52,040
them but one of the

3195
02:28:52,040 --> 02:28:55,059
reasons our firm selected arrow pure is because it was much

3196
02:28:55,059 --> 02:28:55,920
safer than what

3197
02:28:55,920 --> 02:28:59,309
we've used in the past and they feel confident that this is

3198
02:28:59,309 --> 02:29:00,280
the best option

3199
02:29:00,280 --> 02:29:03,809
for us moving forward so with that I'll be happy to stand

3200
02:29:03,809 --> 02:29:04,559
with stand for any

3201
02:29:04,559 --> 02:29:08,559
questions that you might have so it was more pure

3202
02:29:10,559 --> 02:29:15,569
appropriate in this case is this product aerated typically

3203
02:29:15,569 --> 02:29:17,040
what we'll do you do

3204
02:29:17,040 --> 02:29:19,819
have some some machines on site that can spray this into

3205
02:29:19,819 --> 02:29:20,959
the air a lot of times

3206
02:29:20,959 --> 02:29:22,870
we mix it with the water for our water trucks so we're

3207
02:29:22,870 --> 02:29:23,879
doing dust suppression

3208
02:29:23,879 --> 02:29:27,270
and odor suppression at the same time we found with some of

3209
02:29:27,270 --> 02:29:28,440
the the stuff that

3210
02:29:28,440 --> 02:29:30,389
we were spraying into the air it just wasn't quite as

3211
02:29:30,389 --> 02:29:31,319
effective as we would

3212
02:29:31,319 --> 02:29:34,760
like so essentially what we're doing is a two-prong

3213
02:29:34,760 --> 02:29:36,799
approach we have the

3214
02:29:36,799 --> 02:29:40,750
perimeter wall or the perimeter fence that sprays some mist

3215
02:29:40,750 --> 02:29:41,879
to try to knock it

3216
02:29:41,879 --> 02:29:45,319
down on the perimeter this is used more in direct contact

3217
02:29:45,319 --> 02:29:46,120
with the waste and on

3218
02:29:46,120 --> 02:29:49,920
the roads surrounding the active working face

3219
02:30:01,399 --> 02:30:06,440
in terms of the MSDS that though the SDS my understanding

3220
02:30:06,440 --> 02:30:08,079
and I may have to

3221
02:30:08,079 --> 02:30:11,209
refer to dr. Banks on this a little bit most of the SDS is

3222
02:30:11,209 --> 02:30:12,079
done through

3223
02:30:12,079 --> 02:30:16,270
laboratory testing I believe in the SDS sheet that you have

3224
02:30:16,270 --> 02:30:17,799
there or the packet

3225
02:30:17,799 --> 02:30:21,000
that I gave you there are some testing firms in the back

3226
02:30:21,000 --> 02:30:22,760
part of that so

3227
02:30:22,760 --> 02:30:26,639
laboratory reports etc that are included in that you see

3228
02:30:26,639 --> 02:30:29,799
that in your packet

3229
02:30:31,440 --> 02:30:35,500
it is this this firm the firm is based out of the UK Aerop

3230
02:30:35,500 --> 02:30:37,760
ure America is their

3231
02:30:37,760 --> 02:30:43,690
North American arm of the organization I notice we first

3232
02:30:43,690 --> 02:30:46,280
just berry yes it's kind

3233
02:30:46,280 --> 02:30:56,129
of like going to the dentist you get a mix of I don't know

3234
02:30:56,129 --> 02:30:59,479
if there is a taste

3235
02:30:59,479 --> 02:31:04,250
taste testing or anything like that but we'll give it a

3236
02:31:04,250 --> 02:31:06,680
shot I just want to say

3237
02:31:06,680 --> 02:31:09,030
thank you very much for going back and doing that going

3238
02:31:09,030 --> 02:31:09,680
through that due

3239
02:31:09,680 --> 02:31:13,319
diligence I really appreciate it it does relieve my mind

3240
02:31:13,319 --> 02:31:14,600
quite a bit certainly

3241
02:31:14,600 --> 02:31:17,200
appreciate that

3242
02:31:22,120 --> 02:31:25,120
to prove

3243
02:31:26,520 --> 02:31:42,440
second Mr. Chairman members of the board I'll be real quick

3244
02:31:42,440 --> 02:31:43,799
really the only thing

3245
02:31:43,799 --> 02:31:49,819
to report is in your in your agenda packet is the PCW RP

3246
02:31:49,819 --> 02:31:51,479
wet article that

3247
02:31:51,479 --> 02:31:54,219
was provided by PS Aurora if you have any questions mr. or

3248
02:31:54,219 --> 02:31:54,959
is here to answer

3249
02:31:54,959 --> 02:31:59,479
those but other than that nothing else to report

3250
02:32:25,479 --> 02:32:27,020
very good closing items and a section 551 to take a look at

3251
02:32:27,020 --> 02:32:40,239
the public specific

3252
02:32:40,239 --> 02:32:44,399
facts and information the recitation policy or accept the

3253
02:32:44,399 --> 02:32:45,920
proposals place the

3254
02:32:45,920 --> 02:32:49,520
matter on the agenda for upcoming

3255
02:32:52,120 --> 02:32:57,120
saw the ACM for future

3256
02:32:59,520 --> 02:33:03,680
guess for me I would just like to see and for the public

3257
02:33:03,680 --> 02:33:06,000
the results of their

3258
02:33:06,000 --> 02:33:09,469
preliminary emissions testing that they've done with the

3259
02:33:09,469 --> 02:33:10,479
with the engine

3260
02:33:10,479 --> 02:33:14,500
testing you know item by item knocks VOCs and that would

3261
02:33:14,500 --> 02:33:15,239
just be interesting

3262
02:33:15,239 --> 02:33:34,840
be good to see for the public thanks I move we adjourn

3263
02:33:34,840 --> 02:33:38,840
I'll second