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Public utility board meeting to order. First we have on the

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agenda we have work

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session three items there so we'll start with item A which

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is to receive a

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report hold a discussion and give staff direction on on the

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proposed water

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wastewater and miscellaneous rates for fiscal year 2018-

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2019.

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Good morning PEP members my name is Nick Vincent I'm the

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utility business manager

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for the city of Denton and I have two presentations for you

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the first one is

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the water rate presentation the second is the wastewater

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rate presentation. I have a

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little bit of history the 18-19 water and wastewater

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budgets and CIPs were

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presented to PUB on May 7th and May 21st the PUB gave staff

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direction to

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proceed with a 2% rate decrease for water and a 5% rate

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decrease for

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wastewater. Following that meeting in June staff received

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direction from City

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Council to proceed with a 0% rate increase or decrease for

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water and a 5%

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decrease for wastewater. Staff has taken the more

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conservative approach and

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recommending a 0% for water and a 5% decrease for

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wastewater so that's the

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way the presentation is set up today for you. As I stated

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there is no adjustments

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to the water residential or commercial rates staff is

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recommending a 3%

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increase to wholesale rates based on the cost of service

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model. This is the

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wholesale rate comparison here basically we have it broken

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into categories the

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first one being the wholesale raw water rate it has a

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facility charge the

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current charge is $280.31 is proposed to go to 288.72 the

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demand to charge per

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annual cost is 648,426 which is reposed to 667.879 the

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volume charge is

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based on thousand gallons volumes is 59 cents and proposed

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to go to 61 cents.

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The wholesale raw water has rate is 85% of the Dallas rate

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and this is set off

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of the Dallas rate it's 85% of that rate currently the 85%

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of that is 0.867

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staff will update that when the Dallas rate becomes

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available it's not

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available right now. The wholesale wall raw water pass-

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through rate is based off

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the consumer price index of the month of June it is not

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published yet as soon as

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it's published we will update this rate it's currently it

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stands at 0.0266.

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This is the residential water rate comparison chart here it

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shows us

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compared to other cities as you can see here sorry it's a

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little bit out of focus

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but let me see if you can see my pointer you can see the

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current rate that's

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actually in yellow here this is where we're recommending

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that rates stay with

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no decrease or increase.

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This is the commercial water rate comparison chart on 50,

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000 gallons

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based off a two-inch meter you can see the city of Denton

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yellow just about the

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middle of the group so there is no change to that proposed.

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This is the

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commercial water based on 200,000 gallons of the two-inch

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meter excuse me

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you can see us in the yellow just about the middle of the

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group also. If there's any

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questions please stop me anytime and I will answer them.

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That concludes the

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water presentation like I said there is no rate decrease or

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increase proposed

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for water just a 3% wholesale increase on the wholesale

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side.

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Anybody getting questions on the water? So on the versus

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the two cent decrease

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before where was where does that where does that show up in

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the budget as far

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as is that going to the capital's project side? So

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basically the way the

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water fund the budget was looking before is we were showing

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a 2% decrease in

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water basically is showing a drawdown in the fund balance

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and if we take that 2%

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out we're actually just proposing to drop the fund balance

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that much less so

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instead of taking out a fund balance yeah so it didn't

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reduce any capital

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projects and answer your question. Okay yeah.

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All right. Okay now we will proceed to wastewater it's a

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couple different

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options we need PUB to consider in wastewater. Okay so as I

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said PUB during

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the May 21st meeting gave staff direction to proceed with a

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5% rate

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decrease for wastewater. Council in June actually gave the

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same direction to

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proceed with a 5% rate decrease. That's what we have in

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front of you today.

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There's two options to consider the 5% rate decrease.

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Option one is a modified

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cost of service option and option two is a 5% across the

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board reduction. I'll be

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happy to walk us through both of them here. Option one

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reduces the facility

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charge less and reduces the volume charge more. Option two

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does the exact

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opposite. Option one is based on consultants

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recommendations of keeping

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the facility charge somewhat level not adjusting it too

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much moving forward. So

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your facility charge for inside customers currently the

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current rate is

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$11.25 you can see right here and it is proposed in option

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one to go to $11.00

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option two would take it to 1060. Outside customers

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currently is 1295 for the

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facility charge proposed to go to 1275 or 1230 based on

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your guidance. The

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residential volume charge currently is 405 for an inside

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customer which you can

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see here and is proposed to go to 380 and then 385 under

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option two. Outside

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customers 465 proposed to go to 440 under option one and 4

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40 under option two.

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Next slide. This is an average residential monthly bill

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comparison.

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Staff is recommending decreasing the wastewater minimum

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charge from 6,000

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gallons to 5,400 gallons. This is based off historical data

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that staff has been

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and did analysis on and these charges basically the current

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fee for

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residential bill to expect on the wastewater side to be $33

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.12

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under the option one scenario which is cost of service it

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would take it to 3152

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and then option two take it to 3139 which is 5% across the

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board.

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So option one would be about a $1.60 decrease option two

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would be about $1.73.

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This is the residential wastewater rate comparison chart.

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It shows the city of

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Denton current rate here in the yellow where we currently

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are. This here would

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be under option one the 5% cost of service decrease option.

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It would take us

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here to the orange so it actually move us toward the first

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third of the graph.

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This is the commercial rate comparison same scenario as

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residential there's

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two different options for PB to consider. Option one is the

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modified cost of

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service option. Option two is the 5% across the board. The

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facility charge for

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a commercial customer currently is 2675 proposed to go to

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2650 under option one

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or 2540 under option two. The outside facility charge would

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be 3075 currently

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proposed to go to 3050 under option one or 2920 under

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option two. Moving down the

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page here the commercial volume charge inside customers

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currently is 515 under

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option one the cost of service option is 485 proposed and

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then 490 into the 5%

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across the board. The outside city is 585 which is a little

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bit higher inside

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proposed to go to 550 and then 560 under option two. If

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anybody's any questions

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please feel free to stop me I'll keep moving along here.

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The commercial monthly

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bill comparison we we look at this on 50,000 gallons we

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also look at it on

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200,000 gallons. Currently a 50,000 gallon customer can

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expect to pay $284.25

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under option one it would go to 269 under option two it'd

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go to 270 40.

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200,000 gallon customer currently would be 1056.75 cents.

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Option one would take

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it to $996.50. Option two would take it to $1,005.40.

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This is the commercial wastewater comparison based on 50,

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000 gallons you

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can see the city of Denton currently is here in the yellow

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the race we just

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looked at and then the 5% decrease would take us to the

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orange so it'd move us to

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the left a little bit.

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This is a commercial wastewater rate comparison on 200,000

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gallons you can

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see our current rate here in the yellow and then again it

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could be here in the

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orange would be but the proposed is a 5% decrease under

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option one. The on-site

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sanitary sewer facility permit fees these fees have not

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been updated since

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2006 staff started doing analysis to look at the cost of

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service of these

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permit fees and it is recommended these actually increase

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instead of decrease.

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Like I said they have an increase since 2006 cost have

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increased so the aerobic

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treatment system is currently $410 we're proposing to take

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it to 500. The

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conventional treatment permit fee is 210 we're proposing to

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take it to 300. The

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repair alterations and extensions currently is 50 we're

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proposing to take

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it to 200 and the re-inspection fee is a flat fee currently

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based on the permit

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type of 100 or 200 and we're currently planning to take it

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to 50% of the permit

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fee. Those are the proposals what we have some graphs

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following this up that'll

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show us where we stand with other cities that way you you

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'll kind of know where

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that aligns with those cities. So what causes what instance

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is a

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re-inspection fee is that after repairs? I probably would

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have to ask staff to

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maybe Deborah if you could come up here and answer that

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question for us.

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Good morning for I'm Deborah Vieira with environmental

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services. The

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re-inspection fees are if by any chance staff shows up to

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the to the site to

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conduct inspections but they are not being repaired

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accordingly or they have

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not the work done then we would have to go back before they

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can actually put all

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that on the ground so that that would be their inspection

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fee.

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All right then we'll go back or go forward here to the rate

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comparisons. So

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you can see currently here in the city of Denton they're

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both red but this is

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the current rate here for the aerobic treatment here. The

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proposal will take

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us over here to just above crossroads. The conventional

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permit fee

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comparison here you can see the city of Denton currently is

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right here towards

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the lower end. The proposal will take us right here just

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above crumb. The altar

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extend repair fee comparison you can see the city of Denton

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currently down here

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right now. The proposal will move us up a couple here just

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above crossroads. Any

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questions and I also want to mention that it's not in the

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presentation here

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but staff has made changes to the residential delinquent

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service fee. It is

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changed from 46 to 23 and then the residential reconnection

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charge has been

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reduced from 61 to 30 and those reductions were a result of

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the

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installation the smart meters through DMV. That was

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something that staff was

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you know given direction by PB and council to install and

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it result to

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reduce the cost of service of those things. That concludes

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water and

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wastewater. Any questions to be happy to answer? Do you

270
00:12:52,250 --> 00:12:54,240
have any projections for

271
00:12:54,240 --> 00:12:57,519
the amount of revenues total that will change how the

272
00:12:57,519 --> 00:12:59,080
revenues will change as

273
00:12:59,080 --> 00:13:03,960
far as collection goes total? So on the for the five

274
00:13:03,960 --> 00:13:05,639
percent reduction or for

275
00:13:05,639 --> 00:13:09,230
any of it okay so for mostly the reductions okay there you

276
00:13:09,230 --> 00:13:10,200
know while a

277
00:13:10,200 --> 00:13:13,700
few dollars off a residential bill is great it's not it's

278
00:13:13,700 --> 00:13:14,600
really not

279
00:13:14,600 --> 00:13:20,919
substantial and so I wonder if there's really if you're not

280
00:13:20,919 --> 00:13:21,720
you know if we're

281
00:13:21,720 --> 00:13:25,210
gonna lose a significant amount of revenue by offering a

282
00:13:25,210 --> 00:13:26,120
few dollars off

283
00:13:26,120 --> 00:13:28,440
the bill it may be that we can do more for our

284
00:13:28,440 --> 00:13:30,039
infrastructure by using that

285
00:13:30,039 --> 00:13:33,110
money instead of giving this five percent discount. Right

286
00:13:33,110 --> 00:13:34,279
good question.

287
00:13:34,279 --> 00:13:37,259
The five percent reduction in the wastewater rates is about

288
00:13:37,259 --> 00:13:38,000
1.2 million

289
00:13:38,000 --> 00:13:42,720
dollars in revenue. That's what it equates to. Okay okay.

290
00:13:42,720 --> 00:13:43,879
Well we are looking for

291
00:13:43,879 --> 00:13:46,419
recommendations in the PB today too and that's one thing I

292
00:13:46,419 --> 00:13:47,960
did forget option one

293
00:13:47,960 --> 00:13:50,519
or option two on the wastewater side and I can back up to

294
00:13:50,519 --> 00:13:52,100
them. Option one again

295
00:13:52,100 --> 00:13:54,509
was the cost of service option. Option two was the five

296
00:13:54,509 --> 00:13:55,639
percent across the board.

297
00:13:55,639 --> 00:13:58,429
So if we could get recommendations in PB today to which

298
00:13:58,429 --> 00:13:59,600
which option to proceed

299
00:13:59,600 --> 00:14:03,840
with. We will come back to the PB on July 23rd to seek

300
00:14:03,840 --> 00:14:05,240
approval of the rate

301
00:14:05,240 --> 00:14:09,990
ordinances in the budgets. I have one more question about

302
00:14:09,990 --> 00:14:10,720
it's kind of off

303
00:14:10,720 --> 00:14:15,159
topic a little bit but for your on-site sanitary for those

304
00:14:15,159 --> 00:14:16,320
are septic tanks. Yes

305
00:14:16,320 --> 00:14:21,720
sir. Do we know like I know that we you know we annex

306
00:14:21,720 --> 00:14:23,120
property sometime and I

307
00:14:23,120 --> 00:14:26,669
think that's when we run into several of those. Do we have

308
00:14:26,669 --> 00:14:28,679
a good do we know how

309
00:14:28,679 --> 00:14:32,730
many we have in our city really? Let me ask Deborah to come

310
00:14:32,730 --> 00:14:33,559
back up here she

311
00:14:33,559 --> 00:14:36,629
would know that answer. I know that's a little bit off

312
00:14:36,629 --> 00:14:38,080
topic but it seems a

313
00:14:38,080 --> 00:14:46,090
little bit relevant. That is a very good question. We so

314
00:14:46,090 --> 00:14:47,679
far we have got around

315
00:14:47,679 --> 00:14:52,220
700 new sanitary sewer facilities as a part of the annex

316
00:14:52,220 --> 00:14:56,279
ations. We don't have a

317
00:14:56,279 --> 00:14:59,490
we got all that information from the county. The county

318
00:14:59,490 --> 00:15:00,679
when those properties

319
00:15:00,679 --> 00:15:02,840
are in the county the county regulate the installation the

320
00:15:02,840 --> 00:15:03,659
permitting of those

321
00:15:03,659 --> 00:15:07,710
facilities. Unfortunately the county lost all the database

322
00:15:07,710 --> 00:15:09,240
years back and they

323
00:15:09,240 --> 00:15:14,429
didn't have any backup. So what we know so far is around

324
00:15:14,429 --> 00:15:16,320
700 new I'm sorry

325
00:15:16,320 --> 00:15:19,389
additional facility that have been added into the city

326
00:15:19,389 --> 00:15:21,200
regulated system. They

327
00:15:21,200 --> 00:15:24,299
could be more we have been doing going over aerial

328
00:15:24,299 --> 00:15:26,080
photographs and trying to

329
00:15:26,080 --> 00:15:29,350
locate where houses are if they are not tied to the city

330
00:15:29,350 --> 00:15:30,639
system we assume that

331
00:15:30,639 --> 00:15:34,279
they are on sanitary and we have approached them. But that

332
00:15:34,279 --> 00:15:35,879
700 number is a

333
00:15:35,879 --> 00:15:43,230
little bit fluid. If you sure okay okay do you do do you

334
00:15:43,230 --> 00:15:44,720
think that and you know

335
00:15:44,720 --> 00:15:50,480
again this is by raising those fees do you think you'll get

336
00:15:50,480 --> 00:15:52,399
more people who say

337
00:15:52,399 --> 00:15:56,879
hey I've got one let me pay $700 or do you think you'll get

338
00:15:56,879 --> 00:15:57,840
fewer people who

339
00:15:57,840 --> 00:16:01,889
are willing to let you know that they've got one. Well the

340
00:16:01,889 --> 00:16:02,960
those people would

341
00:16:02,960 --> 00:16:06,029
probably trigger the repair alteration if they ever do

342
00:16:06,029 --> 00:16:07,279
anything to their system

343
00:16:07,279 --> 00:16:11,580
it's not that they would be new new permits. So when they

344
00:16:11,580 --> 00:16:13,320
when they come to

345
00:16:13,320 --> 00:16:15,600
the city most of the time those alteration is because

346
00:16:15,600 --> 00:16:16,440
either small

347
00:16:16,440 --> 00:16:20,490
functioning or they're expanding their facility in a need

348
00:16:20,490 --> 00:16:21,639
larger capacity. So

349
00:16:21,639 --> 00:16:24,259
being already in the into the city limits require them to

350
00:16:24,259 --> 00:16:25,039
have some sort of

351
00:16:25,039 --> 00:16:29,509
permit through building inspections. So we will be able to

352
00:16:29,509 --> 00:16:31,480
catch those. The

353
00:16:31,480 --> 00:16:36,360
increases nobody likes the increases however we have been

354
00:16:36,360 --> 00:16:37,679
going over 12 years

355
00:16:37,679 --> 00:16:40,750
with no changes whatsoever and the red payers have been

356
00:16:40,750 --> 00:16:41,600
subsidized in the

357
00:16:41,600 --> 00:16:45,649
difference between what the permit actually cost to do and

358
00:16:45,649 --> 00:16:46,440
review versus

359
00:16:46,440 --> 00:16:49,750
what we're actually charging. So at this point even though

360
00:16:49,750 --> 00:16:51,039
the changes are minimal

361
00:16:51,039 --> 00:16:54,529
I think that we it would be to balance out that that

362
00:16:54,529 --> 00:16:55,840
imbalance that we currently

363
00:16:55,840 --> 00:16:59,889
has. Okay thank you. So what I'm hearing is let's say a

364
00:16:59,889 --> 00:17:00,960
property gets annexed

365
00:17:00,960 --> 00:17:06,240
into the city that doesn't trigger a permit. Correct. Yeah

366
00:17:06,240 --> 00:17:07,440
it is when they are

367
00:17:07,440 --> 00:17:10,549
ready to just when it gets repaired or power functions.

368
00:17:10,549 --> 00:17:12,160
Correct. Or if they put a new one.

369
00:17:12,160 --> 00:17:23,039
So the options we have really option one is more when you

370
00:17:23,039 --> 00:17:24,200
say modified cost of

371
00:17:24,200 --> 00:17:29,559
service I know that it's kind of like a facilities charge I

372
00:17:29,559 --> 00:17:30,519
guess if you will

373
00:17:30,519 --> 00:17:34,839
because it's or based upon really what it costs to deliver

374
00:17:34,839 --> 00:17:36,559
that although the

375
00:17:36,559 --> 00:17:41,119
increase or the decrease doesn't seem quite as much. Now I

376
00:17:41,119 --> 00:17:41,960
'd like to get

377
00:17:41,960 --> 00:17:49,309
everybody's thoughts on this but it seems to me it's a more

378
00:17:49,309 --> 00:17:49,960
instead of just

379
00:17:49,960 --> 00:17:53,079
saying five across five percent across the board which

380
00:17:53,079 --> 00:17:54,599
certainly sounds better

381
00:17:54,599 --> 00:18:02,059
but it's more really more reflective of based upon what

382
00:18:02,059 --> 00:18:03,839
what our usage is or

383
00:18:03,839 --> 00:18:07,329
what our what it cost to deliver the water or take the

384
00:18:07,329 --> 00:18:08,759
wastewater away.

385
00:18:08,759 --> 00:18:11,819
Based on a lot of factors. Yeah based on the cost of

386
00:18:11,819 --> 00:18:14,559
service rate model.

387
00:18:14,880 --> 00:18:19,000
You mentioned that the consultant had a recommendation and

388
00:18:19,000 --> 00:18:20,000
could give us the

389
00:18:20,000 --> 00:18:25,759
basis for that. So my understanding in Dr. Banks I may have

390
00:18:25,759 --> 00:18:26,559
to point you up here

391
00:18:26,559 --> 00:18:30,640
is a past consultant did make a recommendation to the city

392
00:18:30,640 --> 00:18:32,000
that it was a

393
00:18:32,000 --> 00:18:35,240
good decision to keep the facility charge relatively stable

394
00:18:35,240 --> 00:18:36,440
because it's a

395
00:18:36,440 --> 00:18:39,960
pretty constant revenue stream. The volume charge of course

396
00:18:39,960 --> 00:18:40,799
with rainfall

397
00:18:40,799 --> 00:18:44,450
and unpredictable weather tends to go up and down and that

398
00:18:44,450 --> 00:18:45,440
's my understanding of

399
00:18:45,440 --> 00:18:51,859
it. Is that pretty close to okay yeah does that answer your

400
00:18:51,859 --> 00:18:53,319
question or okay

401
00:18:53,319 --> 00:18:56,950
that's why option one it proposes to reduce the facility

402
00:18:56,950 --> 00:18:58,440
charge less option

403
00:18:58,440 --> 00:19:01,579
two is more we're trying to stick with those

404
00:19:01,579 --> 00:19:04,279
recommendations and option one.

405
00:19:04,279 --> 00:19:08,400
And it stays closer to what it actually costs us to deliver

406
00:19:08,400 --> 00:19:09,359
that service. That's

407
00:19:09,359 --> 00:19:12,430
correct that's correct. I'm always in favor of that. Yeah

408
00:19:12,430 --> 00:19:14,200
that's correct. If you go

409
00:19:14,200 --> 00:19:17,259
too far off of that then you could see higher rate

410
00:19:17,259 --> 00:19:18,359
increases down the road.

411
00:19:18,359 --> 00:19:21,680
Right right right. On the flip side if you're out of town

412
00:19:21,680 --> 00:19:22,720
and you don't use any

413
00:19:22,720 --> 00:19:26,430
water and you still have a water bill sometimes that's

414
00:19:26,430 --> 00:19:27,839
surprising you know I

415
00:19:27,839 --> 00:19:30,329
mean that they all have that base charge regardless if you

416
00:19:30,329 --> 00:19:31,359
're actually using the

417
00:19:31,359 --> 00:19:34,680
service or not. Right. You know so if you have gas

418
00:19:34,680 --> 00:19:36,599
electricity and water and you're

419
00:19:36,599 --> 00:19:40,319
gone for a month you've got $80 worth of bills even though

420
00:19:40,319 --> 00:19:41,039
you haven't used

421
00:19:41,039 --> 00:19:45,119
anything at all. But that's because we had to build a

422
00:19:45,119 --> 00:19:46,160
system to get there. I'm with you.

423
00:19:46,160 --> 00:19:54,119
Okay yeah I don't know if either option is significantly

424
00:19:54,119 --> 00:19:55,000
enough different to

425
00:19:55,000 --> 00:20:02,640
really it's not but I would go in favor of option one.

426
00:20:02,640 --> 00:20:09,119
I would agree. All right looks like the consensus is option

427
00:20:09,119 --> 00:20:10,039
one is our

428
00:20:10,039 --> 00:20:17,420
preference or recommendation to base it on you know actual

429
00:20:17,420 --> 00:20:20,119
cost of service.

430
00:20:22,359 --> 00:20:27,319
Any other comments about that? No. Yeah and like I said we

431
00:20:27,319 --> 00:20:28,039
'll come back on the

432
00:20:28,039 --> 00:20:31,720
23rd with the actual rate ordinances based on 0% in water

433
00:20:31,720 --> 00:20:32,440
and then a 5%

434
00:20:32,440 --> 00:20:36,490
reduction in wastewater. Okay. So we'll proceed. All right

435
00:20:36,490 --> 00:20:39,000
thank you.

436
00:20:43,640 --> 00:20:49,970
Okay item B is to receive a report hold a discussion give

437
00:20:49,970 --> 00:20:50,960
staff direction

438
00:20:50,960 --> 00:20:57,519
regarding proposed electric rates for fiscal year 2018-2019

439
00:20:57,519 --> 00:20:57,519
.

440
00:21:09,880 --> 00:21:13,930
Good morning George Morrow general manager of DME. Each

441
00:21:13,930 --> 00:21:14,839
year we come

442
00:21:14,839 --> 00:21:17,299
forward after the budget presentation and talk about the

443
00:21:17,299 --> 00:21:18,039
rate schedules

444
00:21:18,039 --> 00:21:20,289
themselves you know what changes need to be made in the

445
00:21:20,289 --> 00:21:21,720
rate schedules and really

446
00:21:21,720 --> 00:21:24,339
for this year they're going to be very minimal but we want

447
00:21:24,339 --> 00:21:25,279
to follow through

448
00:21:25,279 --> 00:21:31,420
with our typical process. So the key things we'll be

449
00:21:31,420 --> 00:21:33,720
talking through a few

450
00:21:33,720 --> 00:21:39,089
names ECA, RCA, TCRF. ECA is the energy cost adjustment. R

451
00:21:39,089 --> 00:21:40,160
CA is the renewable

452
00:21:40,160 --> 00:21:43,339
cost adjustment and the TCRF is the transmission cost

453
00:21:43,339 --> 00:21:44,640
recovery factor and

454
00:21:44,640 --> 00:21:47,859
that rate table I was talking about is in our ordinance

455
00:21:47,859 --> 00:21:50,000
2017-256 which will

456
00:21:50,000 --> 00:21:53,079
have some very minor minor changes as a result of the

457
00:21:53,079 --> 00:21:54,440
budget process and so

458
00:21:54,440 --> 00:21:58,609
here's basically the rate change overview. The biggest one

459
00:21:58,609 --> 00:21:59,319
is we're going

460
00:21:59,319 --> 00:22:05,559
to zero out the TCRF for 2019. So that's going to save our

461
00:22:05,559 --> 00:22:06,359
customers an average

462
00:22:06,359 --> 00:22:10,599
of about three and a half percent. No changes to the ECA or

463
00:22:10,599 --> 00:22:11,759
RCA amounts so

464
00:22:11,759 --> 00:22:15,329
we're fixing that we're going to hang in there. Now the ECA

465
00:22:15,329 --> 00:22:16,160
is reviewed

466
00:22:16,160 --> 00:22:19,759
quarterly so the PUB has that in their charter their

467
00:22:19,759 --> 00:22:21,480
responsibility so you know

468
00:22:21,480 --> 00:22:24,539
we'd like to stay with that ECA for the rest of the budget

469
00:22:24,539 --> 00:22:25,400
year but we're going

470
00:22:25,400 --> 00:22:27,680
to look at the numbers and the things change significantly

471
00:22:27,680 --> 00:22:28,720
then general

472
00:22:28,720 --> 00:22:31,789
managers charged with coming back to you and updating you

473
00:22:31,789 --> 00:22:32,839
about the ECA so you

474
00:22:32,839 --> 00:22:36,329
might see me in three months or so if things have changed

475
00:22:36,329 --> 00:22:37,160
from the the budget

476
00:22:37,160 --> 00:22:39,640
expectations but we're hoping we can hang in there. We'll

477
00:22:39,640 --> 00:22:41,079
see. We got a little

478
00:22:41,079 --> 00:22:44,400
more explicit with the ECA definition when I reviewed that

479
00:22:44,400 --> 00:22:45,240
and I've been

480
00:22:45,240 --> 00:22:48,430
playing with ECA's over my career it didn't look like it

481
00:22:48,430 --> 00:22:49,519
was as precise and

482
00:22:49,519 --> 00:22:54,400
specific as I was hoping so we updated that definition and

483
00:22:54,400 --> 00:22:55,599
that's part of your

484
00:22:55,599 --> 00:22:59,339
packet today. One of the things that didn't really wasn't

485
00:22:59,339 --> 00:23:00,119
clear to me that it

486
00:23:00,119 --> 00:23:04,170
explicitly credited all of our power sales revenue you know

487
00:23:04,170 --> 00:23:04,880
so the ECA has

488
00:23:04,880 --> 00:23:07,950
the cost in there right of all of our power supplies but it

489
00:23:07,950 --> 00:23:09,160
should also credit

490
00:23:09,160 --> 00:23:11,670
of course the revenue and we were doing that it just didn't

491
00:23:11,670 --> 00:23:12,440
really say that

492
00:23:12,440 --> 00:23:15,500
clearly so we updated that. We talked to you about

493
00:23:15,500 --> 00:23:17,000
including the DEC so that's a

494
00:23:17,000 --> 00:23:20,130
big change we've never had a DEC before we never had a

495
00:23:20,130 --> 00:23:21,640
power plant or at least

496
00:23:21,640 --> 00:23:25,130
not for many many many years so we're putting those costs

497
00:23:25,130 --> 00:23:26,440
into the ECA but

498
00:23:26,440 --> 00:23:28,789
we're also putting the revenues from the DEC into the ECA

499
00:23:28,789 --> 00:23:29,839
so that's an offsetting

500
00:23:29,839 --> 00:23:32,900
and for the first few years if you remember the DEC pro

501
00:23:32,900 --> 00:23:33,519
forma there's a

502
00:23:33,519 --> 00:23:37,920
very positive balance from revenues versus cost and so the

503
00:23:37,920 --> 00:23:38,799
customers will

504
00:23:38,799 --> 00:23:41,920
benefit from that in the short run and we'll see what

505
00:23:41,920 --> 00:23:42,400
happens in the

506
00:23:42,400 --> 00:23:46,970
future you know nobody can really predict exactly and we'll

507
00:23:46,970 --> 00:23:48,000
take it a year

508
00:23:48,000 --> 00:23:52,380
at a time as we move forward with the DEC and there's some

509
00:23:52,380 --> 00:23:53,440
other very minor

510
00:23:53,440 --> 00:23:57,569
wording changes we eliminated what's called residential

511
00:23:57,569 --> 00:24:00,400
prepaid service where

512
00:24:00,400 --> 00:24:03,170
we were had a facility charge for three-phase service well

513
00:24:03,170 --> 00:24:03,640
we don't

514
00:24:03,640 --> 00:24:06,710
actually have that three-phase service they don't make

515
00:24:06,710 --> 00:24:07,839
meters that allow us to

516
00:24:07,839 --> 00:24:10,960
do that I think at one time we hope to do that so we just

517
00:24:10,960 --> 00:24:11,960
simply remove that

518
00:24:11,960 --> 00:24:16,289
but we didn't really change the usage charges for that and

519
00:24:16,289 --> 00:24:17,319
then we just we

520
00:24:17,319 --> 00:24:20,390
pointed out to customers if they're going to install

521
00:24:20,390 --> 00:24:21,319
distributed generation

522
00:24:21,319 --> 00:24:24,519
behind the meter you know we have a manual you know go look

523
00:24:24,519 --> 00:24:25,079
at the manual

524
00:24:25,079 --> 00:24:28,150
upfront and learn about the process and what you should

525
00:24:28,150 --> 00:24:29,400
consider when you're

526
00:24:29,400 --> 00:24:32,789
putting in distributed generation and there's one bit of

527
00:24:32,789 --> 00:24:34,079
language in there that

528
00:24:34,079 --> 00:24:39,359
says hey if you if your intention is to generate more

529
00:24:39,359 --> 00:24:40,240
electricity than you're

530
00:24:40,240 --> 00:24:42,720
actually using that sort of puts you in a different

531
00:24:42,720 --> 00:24:45,680
category then we may want to

532
00:24:45,680 --> 00:24:49,730
talk about how we treat that additional generation so so

533
00:24:49,730 --> 00:24:50,720
right now if you

534
00:24:50,720 --> 00:24:54,099
install behind the meter solar for instance you're gonna

535
00:24:54,099 --> 00:24:55,019
you can offset

536
00:24:55,019 --> 00:24:59,730
your bill pretty much one for one and a little bit of that

537
00:24:59,730 --> 00:25:00,319
discussion was

538
00:25:00,319 --> 00:25:02,880
mentioned earlier you're not going to be paying any of our

539
00:25:02,880 --> 00:25:03,799
system costs you're

540
00:25:03,799 --> 00:25:08,400
not gonna be paying the wires cost the T&D administration

541
00:25:08,400 --> 00:25:11,000
finance rates so up

542
00:25:11,000 --> 00:25:14,519
to a point that is an incentive right to encourage

543
00:25:14,519 --> 00:25:17,400
renewable generation but over

544
00:25:17,400 --> 00:25:19,849
that if you start going beyond that should you you know

545
00:25:19,849 --> 00:25:20,759
what what should we

546
00:25:20,759 --> 00:25:23,960
do how should we treat that you know maybe there's a point

547
00:25:23,960 --> 00:25:25,400
where an incentive

548
00:25:25,400 --> 00:25:27,730
is appropriate but maybe there's another point where it's

549
00:25:27,730 --> 00:25:28,480
not and that would be a

550
00:25:28,480 --> 00:25:32,240
dialogue for us to have at some time if we get another very

551
00:25:32,240 --> 00:25:33,400
large renewable

552
00:25:33,400 --> 00:25:37,450
installation our code says if it's over 50 KW we should at

553
00:25:37,450 --> 00:25:38,839
least think about how

554
00:25:38,839 --> 00:25:43,160
we treat that over 50 and I think that's over my pay grade

555
00:25:43,160 --> 00:25:44,480
so I obviously want to

556
00:25:44,480 --> 00:25:47,549
come back and have that dialogue with you as we go forward

557
00:25:47,549 --> 00:25:51,839
so this is a

558
00:25:51,839 --> 00:25:55,910
breakdown of what that reduction in the TCRF to zero means

559
00:25:55,910 --> 00:25:57,279
it was an average of

560
00:25:57,279 --> 00:25:59,150
three and a half percent but it just depends which

561
00:25:59,150 --> 00:26:00,079
particular rate class

562
00:26:00,079 --> 00:26:03,670
you're in how that falls out and so that's a summary if you

563
00:26:03,670 --> 00:26:04,839
look on the far

564
00:26:04,839 --> 00:26:08,890
right hand column there's the percentages the dollar sign

565
00:26:08,890 --> 00:26:09,440
column shows

566
00:26:09,440 --> 00:26:16,950
how much of a typical bill the savings would be so and

567
00:26:16,950 --> 00:26:18,519
there's a further

568
00:26:18,519 --> 00:26:21,589
breakdown in your packet today for each of those areas

569
00:26:21,589 --> 00:26:22,839
showing the different

570
00:26:22,839 --> 00:26:25,170
tiers and the different other components so I'm just going

571
00:26:25,170 --> 00:26:26,039
to zip through here

572
00:26:26,039 --> 00:26:29,529
because we just summarized it in that last slide these are

573
00:26:29,529 --> 00:26:30,519
the same numbers

574
00:26:30,519 --> 00:26:34,009
that you were just looking at so this is average small

575
00:26:34,009 --> 00:26:36,640
commercial average medium

576
00:26:36,640 --> 00:26:40,380
commercial again the bottom the only change really is that

577
00:26:40,380 --> 00:26:41,480
TCRF going to zero

578
00:26:41,480 --> 00:26:45,160
and all of these different tables and then large commercial

579
00:26:45,160 --> 00:26:46,079
same thing that

580
00:26:46,079 --> 00:26:49,599
TCRF going to zero so the savings is typically a thousand

581
00:26:49,599 --> 00:26:51,200
dollars or four

582
00:26:51,200 --> 00:26:56,559
point three one percent for large commercial so the process

583
00:26:56,559 --> 00:26:57,680
going forward

584
00:26:57,680 --> 00:27:01,730
will be will be coming back to you on July 23rd for today's

585
00:27:01,730 --> 00:27:02,440
just a work

586
00:27:02,440 --> 00:27:04,819
session we'll come back for formal approval of what we

587
00:27:04,819 --> 00:27:05,880
talked about here and

588
00:27:05,880 --> 00:27:09,930
then we'll go forward with the council on September 19th so

589
00:27:09,930 --> 00:27:10,519
open for any

590
00:27:10,519 --> 00:27:21,440
comments questions this on the TCRF rate going to zero it

591
00:27:21,440 --> 00:27:22,799
has a TCRF has that

592
00:27:22,799 --> 00:27:27,680
been a part of the ECA rate in the past no it I think at

593
00:27:27,680 --> 00:27:29,599
some point it was and

594
00:27:29,599 --> 00:27:32,140
then it was split then we had some new costs new

595
00:27:32,140 --> 00:27:33,279
transmission service costs

596
00:27:33,279 --> 00:27:36,599
that were beyond what we typically had put in the ECA so we

597
00:27:36,599 --> 00:27:37,480
created a new

598
00:27:37,480 --> 00:27:41,140
category called the TCRF several years ago and to collect

599
00:27:41,140 --> 00:27:42,359
those additional

600
00:27:42,359 --> 00:27:46,890
transmission costs so we've and staff talked about

601
00:27:46,890 --> 00:27:48,759
combining the two and

602
00:27:48,759 --> 00:27:51,829
that's possible down the road we may actually do that

603
00:27:51,829 --> 00:27:53,039
because transmission

604
00:27:53,039 --> 00:27:56,109
service costs could actually be part of energy cost

605
00:27:56,109 --> 00:27:57,200
adjustment right it does

606
00:27:57,200 --> 00:28:00,589
there's a nexus there so that if we are able to continue

607
00:28:00,589 --> 00:28:02,000
with this at zero for

608
00:28:02,000 --> 00:28:04,519
an extended period then likely we might come back as hey

609
00:28:04,519 --> 00:28:05,559
let's just do away with

610
00:28:05,559 --> 00:28:08,630
it if that's where you're going with that question so

611
00:28:08,630 --> 00:28:12,119
overall as a system our

612
00:28:12,119 --> 00:28:20,869
the TCRF that we pay into our cut right is offset by

613
00:28:20,869 --> 00:28:22,599
revenue that revenue

614
00:28:22,599 --> 00:28:27,480
credits if you will by of our transmission cost because we

615
00:28:27,480 --> 00:28:28,519
there's also

616
00:28:28,519 --> 00:28:32,980
a reimbursement side of that right so just to clarify that

617
00:28:32,980 --> 00:28:34,440
so on the cost side

618
00:28:34,440 --> 00:28:38,849
when we make transmission investments we submit those to

619
00:28:38,849 --> 00:28:42,279
the PUC and they make

620
00:28:42,279 --> 00:28:44,700
sure we get reimbursed for that and you've talked about

621
00:28:44,700 --> 00:28:45,480
that quite a bit in

622
00:28:45,480 --> 00:28:48,970
the past so that's our cost side on the expense side we

623
00:28:48,970 --> 00:28:50,599
have to pay our share of

624
00:28:50,599 --> 00:28:53,910
other electric utilities in Texas when we impact their

625
00:28:53,910 --> 00:28:55,240
system so that's the

626
00:28:55,240 --> 00:29:01,559
expense side so right now the and we had been netting those

627
00:29:01,559 --> 00:29:02,519
and one time they

628
00:29:02,519 --> 00:29:05,170
were very close but as we continued with our T and D

629
00:29:05,170 --> 00:29:07,079
program that the revenue

630
00:29:07,079 --> 00:29:10,150
side is much higher now than the expense side so we do

631
00:29:10,150 --> 00:29:11,680
account for those

632
00:29:11,680 --> 00:29:15,400
separately and I think back when that TCRF was established

633
00:29:15,400 --> 00:29:17,099
it was that part

634
00:29:17,099 --> 00:29:20,599
was separated out the expense part from a financial or

635
00:29:20,599 --> 00:29:23,039
business standpoint so is

636
00:29:23,039 --> 00:29:26,720
that clear yes it is I just want to make that clarification

637
00:29:26,720 --> 00:29:28,980
that there's so it's

638
00:29:28,980 --> 00:29:32,339
not a netting at the moment it's kind of that's our expense

639
00:29:32,339 --> 00:29:34,279
right for right and

640
00:29:34,279 --> 00:29:36,619
it's just actually part of our expenses kind of like an

641
00:29:36,619 --> 00:29:37,759
incremental piece that

642
00:29:37,759 --> 00:29:40,410
was over and above what we had been used to in the past but

643
00:29:40,410 --> 00:29:42,359
that's coming off the

644
00:29:42,359 --> 00:29:46,410
individual bills now the expense side is coming off right

645
00:29:46,410 --> 00:29:47,559
so we're recommending

646
00:29:47,559 --> 00:29:50,299
correct okay so this year we collected next year we're

647
00:29:50,299 --> 00:29:50,960
proposing not to

648
00:29:50,960 --> 00:29:58,309
collect it okay questions I'm glad to see the ECA rate it's

649
00:29:58,309 --> 00:29:59,599
more transparent

650
00:29:59,599 --> 00:30:05,359
when you put in the put everything in with the power cells

651
00:30:05,359 --> 00:30:07,160
and expenses and

652
00:30:07,160 --> 00:30:09,750
all that so that that should be very transparent going

653
00:30:09,750 --> 00:30:10,880
forward how that rate

654
00:30:10,880 --> 00:30:17,119
is calculated and if I understand that is what we were

655
00:30:17,119 --> 00:30:18,160
doing we're just making

656
00:30:18,160 --> 00:30:22,400
it more transparent right correct nothing yeah nothing new

657
00:30:22,400 --> 00:30:23,559
in reality with

658
00:30:23,559 --> 00:30:26,630
the exception of the clarifying that the deck is also a

659
00:30:26,630 --> 00:30:27,880
power supply and that

660
00:30:27,880 --> 00:30:31,049
would be included in there okay that has no way by that

661
00:30:31,049 --> 00:30:34,599
this year right all right

662
00:30:34,599 --> 00:30:40,549
any other comments questions is there a direction

663
00:30:40,549 --> 00:30:42,759
recommendations so we'll be

664
00:30:42,759 --> 00:30:46,809
coming back on the the 23rd for your formal approval of

665
00:30:46,809 --> 00:30:47,720
that what we talked

666
00:30:47,720 --> 00:30:53,240
about today okay I think everybody's no questions on it

667
00:30:53,240 --> 00:30:53,960
right thank you very

668
00:30:53,960 --> 00:31:03,359
much thanks George okay next we have item C which is to

669
00:31:03,359 --> 00:31:04,339
receive a report hold

670
00:31:04,339 --> 00:31:07,019
a discussion and give staff direction regarding the solid

671
00:31:07,019 --> 00:31:08,319
waste department's

672
00:31:08,319 --> 00:31:11,920
cost of service and right design study provided by new gen

673
00:31:11,920 --> 00:31:12,960
strategies and

674
00:31:12,960 --> 00:31:22,069
solutions LLC almost came to the podium for the wrong item

675
00:31:22,069 --> 00:31:23,680
earlier so excited

676
00:31:23,680 --> 00:31:26,109
about electric rates I wanted to do the presentation for

677
00:31:26,109 --> 00:31:27,839
George well good morning

678
00:31:27,839 --> 00:31:30,170
members of the PB my name is Ethan Cox I'm the director of

679
00:31:30,170 --> 00:31:31,079
solid waste for the

680
00:31:31,079 --> 00:31:34,960
city of Denton it's my pleasure to have new gen services

681
00:31:34,960 --> 00:31:35,759
here this morning mr.

682
00:31:35,759 --> 00:31:38,509
Dave Yankee is going to be coming to the podium in just a

683
00:31:38,509 --> 00:31:39,640
moment a few of the

684
00:31:39,640 --> 00:31:42,390
things that I wanted to kind of lay out before we get

685
00:31:42,390 --> 00:31:44,079
started is this is kind of

686
00:31:44,079 --> 00:31:47,140
kind of a continuation of a discussion we had with the pub

687
00:31:47,140 --> 00:31:48,119
in the council a few

688
00:31:48,119 --> 00:31:51,480
weeks ago we had our operational review in which we kind of

689
00:31:51,480 --> 00:31:52,519
came to the pub in

690
00:31:52,519 --> 00:31:55,170
the council we talked a little bit about how our programs

691
00:31:55,170 --> 00:31:56,279
were performing how our

692
00:31:56,279 --> 00:31:59,349
operations were performing this is kind of the financial

693
00:31:59,349 --> 00:32:00,599
side of that discussion

694
00:32:00,599 --> 00:32:04,650
in that we've really spent the last 13 to 14 months kind of

695
00:32:04,650 --> 00:32:05,599
pulling our budget

696
00:32:05,599 --> 00:32:07,759
apart making sure we understand where all of our costs are

697
00:32:07,759 --> 00:32:08,440
and put it back

698
00:32:08,440 --> 00:32:11,750
together and I'd be remiss if I didn't compliment our staff

699
00:32:11,750 --> 00:32:12,920
the financial staff

700
00:32:12,920 --> 00:32:15,990
particularly that has done some real yeoman's work to kind

701
00:32:15,990 --> 00:32:16,920
of get us to this

702
00:32:16,920 --> 00:32:20,960
point and so mr. Yankee is going to come up in just a

703
00:32:20,960 --> 00:32:22,240
moment and kind of walk us

704
00:32:22,240 --> 00:32:25,740
through new Jen's work on this so far and then I'll return

705
00:32:25,740 --> 00:32:26,640
to the podium

706
00:32:26,640 --> 00:32:29,700
afterward to have a brief management overview kind of

707
00:32:29,700 --> 00:32:30,440
management response

708
00:32:30,440 --> 00:32:33,509
fuel to their recommendations and findings and so without

709
00:32:33,509 --> 00:32:34,160
further ado I'll

710
00:32:34,160 --> 00:32:38,440
turn it over to mr. Dave Yankee

711
00:32:54,880 --> 00:32:58,079
great thank you

712
00:33:05,000 --> 00:33:06,750
well good morning for the record my name is Dave Yankee

713
00:33:06,750 --> 00:33:11,079
with new Jen's strategies

714
00:33:11,079 --> 00:33:14,569
and solutions just real quick I'm going to give you a

715
00:33:14,569 --> 00:33:16,279
little background on our

716
00:33:16,279 --> 00:33:20,690
firm we're a 35 person management consulting firm what we

717
00:33:20,690 --> 00:33:21,519
focus on is

718
00:33:21,519 --> 00:33:25,789
conducting financial economic cost-of-service studies for

719
00:33:25,789 --> 00:33:27,079
water wastewater

720
00:33:27,079 --> 00:33:27,079
solid waste and electric so this is what we do and I'm out

721
00:33:27,079 --> 00:33:33,680
of our Austin office

722
00:33:33,680 --> 00:33:37,170
real quick background I've been involved in the solid waste

723
00:33:37,170 --> 00:33:38,279
area for about 25

724
00:33:38,279 --> 00:33:43,220
years again what I focus on is cost-of-service and rate

725
00:33:43,220 --> 00:33:44,319
design studies

726
00:33:44,319 --> 00:33:48,369
financial feasibility studies things like that so again

727
00:33:48,369 --> 00:33:49,039
just a little

728
00:33:49,039 --> 00:33:53,529
background I've been doing this for quite a while let me

729
00:33:53,529 --> 00:33:54,839
give you a real

730
00:33:54,839 --> 00:34:01,079
quick scope or synopsis of what our scope was the first

731
00:34:01,079 --> 00:34:02,279
thing was we were

732
00:34:02,279 --> 00:34:05,470
to conduct a cost service study that allocates all the cost

733
00:34:05,470 --> 00:34:06,680
to each specific

734
00:34:06,680 --> 00:34:09,739
solid waste service and I'll show those to you here in a

735
00:34:09,739 --> 00:34:10,840
little bit we're also

736
00:34:10,840 --> 00:34:14,360
also supposed to develop a five-year revenue requirement

737
00:34:14,360 --> 00:34:15,679
which is for fiscal

738
00:34:15,679 --> 00:34:20,559
year 19 through fiscal year 2023 with that then we were

739
00:34:20,559 --> 00:34:22,000
going to forecast out

740
00:34:22,000 --> 00:34:26,050
what are the revenues being realized for each of those

741
00:34:26,050 --> 00:34:27,480
services you know are you

742
00:34:27,480 --> 00:34:31,949
under recovering over recovering and then based on that

743
00:34:31,949 --> 00:34:33,639
step four recommend

744
00:34:33,639 --> 00:34:36,880
or design rates for residential and commercial collection

745
00:34:36,880 --> 00:34:37,960
services the

746
00:34:37,960 --> 00:34:42,010
fifth item was a market analysis and what that entails is

747
00:34:42,010 --> 00:34:43,239
looking at what are

748
00:34:43,239 --> 00:34:47,579
you charging for wholesale solid waste coming into the

749
00:34:47,579 --> 00:34:48,880
landfill whether it's

750
00:34:48,880 --> 00:34:51,949
from private contractors other cities what have you

751
00:34:51,949 --> 00:34:53,840
basically garbage not

752
00:34:53,840 --> 00:34:58,280
collected by your city and then finally presenting

753
00:34:58,280 --> 00:35:00,360
presentation to to you folks

754
00:35:00,360 --> 00:35:03,449
City Council and then we'll be issuing a draft and then a

755
00:35:03,449 --> 00:35:04,800
final report with our

756
00:35:04,800 --> 00:35:08,849
findings and recommendations I want to talk just briefly on

757
00:35:08,849 --> 00:35:09,559
the cost of service

758
00:35:09,559 --> 00:35:13,800
methodology and what we did drill into it a little bit more

759
00:35:13,800 --> 00:35:15,239
what we did is first

760
00:35:15,239 --> 00:35:18,329
of all we developed what's called a test year which is

761
00:35:18,329 --> 00:35:19,800
using your preliminary

762
00:35:19,800 --> 00:35:23,849
fiscal year 2019 budget spent a lot of time with staff and

763
00:35:23,849 --> 00:35:24,519
I do want to

764
00:35:24,519 --> 00:35:28,039
compliment them because they spent a lot of time with us

765
00:35:28,039 --> 00:35:29,719
going into it as far as

766
00:35:29,719 --> 00:35:33,369
looking at the budget the capital plan all the equipment

767
00:35:33,369 --> 00:35:34,840
and personnel and how

768
00:35:34,840 --> 00:35:38,400
they get assigned to the different services and so with

769
00:35:38,400 --> 00:35:39,639
that we then

770
00:35:39,639 --> 00:35:43,690
developed a five-year revenue requirement key component in

771
00:35:43,690 --> 00:35:44,480
that is the

772
00:35:44,480 --> 00:35:47,969
capital improvement plan that's for purchasing rolling

773
00:35:47,969 --> 00:35:49,039
stock your debt

774
00:35:49,039 --> 00:35:51,750
service and all that I've got a couple slides that will

775
00:35:51,750 --> 00:35:52,800
show with regard to

776
00:35:52,800 --> 00:35:56,289
that here in a few minutes and then allocating the cost to

777
00:35:56,289 --> 00:35:57,079
the service

778
00:35:57,079 --> 00:35:59,769
categories you have 22 service categories I'll just show

779
00:35:59,769 --> 00:36:00,239
you those

780
00:36:00,239 --> 00:36:05,030
briefly and then allocating to the customer classes and

781
00:36:05,030 --> 00:36:06,400
then calculating

782
00:36:06,400 --> 00:36:12,239
the cost of service couple highlights I want to emphasize

783
00:36:12,239 --> 00:36:14,840
here your own M again

784
00:36:14,840 --> 00:36:18,889
is based on your fiscal year 2019 proposed budget

785
00:36:18,889 --> 00:36:20,400
adjustments were made to

786
00:36:20,400 --> 00:36:24,449
reflect reoccurring cash needs and investments again I'll

787
00:36:24,449 --> 00:36:25,400
have a slide on

788
00:36:25,400 --> 00:36:28,889
that what that means is what we're really focused on is

789
00:36:28,889 --> 00:36:30,159
seeing if we can

790
00:36:30,159 --> 00:36:34,639
help in looking at the forecast move to more of what we

791
00:36:34,639 --> 00:36:36,559
call a pay-as-you-go

792
00:36:36,559 --> 00:36:40,610
cash funding some of your rolling stock and again I have a

793
00:36:40,610 --> 00:36:41,639
slide to show the

794
00:36:41,639 --> 00:36:46,599
increase in that so you can pay with cash versus debt or

795
00:36:46,599 --> 00:36:48,440
you know phase that

796
00:36:48,440 --> 00:36:53,360
out great news and good thing that is the the third bullet

797
00:36:53,360 --> 00:36:54,519
annual debt service

798
00:36:54,519 --> 00:36:57,679
payments again I'll have a slide here I'll show it to you

799
00:36:57,679 --> 00:36:58,960
but you're seeing a

800
00:36:58,960 --> 00:37:03,440
decrease in your debt service declining by 3.8 million

801
00:37:03,440 --> 00:37:05,400
dollars a year from

802
00:37:05,400 --> 00:37:10,670
fiscal year 2019-2023 what that allows you to do is

803
00:37:10,670 --> 00:37:12,280
increase the cash you're

804
00:37:12,280 --> 00:37:17,159
setting aside for paying cash for your equipment versus

805
00:37:17,159 --> 00:37:19,880
issuing debt and so

806
00:37:19,880 --> 00:37:22,949
again that that leads into the final bullet you'll see a

807
00:37:22,949 --> 00:37:23,880
significant increase

808
00:37:23,880 --> 00:37:28,440
in the funding for that equipment on a pay-as-you-go basis

809
00:37:28,440 --> 00:37:29,159
these are all the

810
00:37:29,159 --> 00:37:32,230
services you provide you probably don't know all these

811
00:37:32,230 --> 00:37:33,239
services you take them

812
00:37:33,239 --> 00:37:36,880
for granted a lot of it's behind the scenes but there are

813
00:37:36,880 --> 00:37:38,280
22 different

814
00:37:38,280 --> 00:37:41,349
service categories here again they're focused between the

815
00:37:41,349 --> 00:37:42,159
residential the

816
00:37:42,159 --> 00:37:45,389
commercial and then administrative gets allocated to them

817
00:37:45,389 --> 00:37:46,519
and then you have the

818
00:37:46,519 --> 00:37:51,599
disposal related operations I'll keep moving on that unless

819
00:37:51,599 --> 00:37:52,199
anyone has

820
00:37:52,199 --> 00:37:59,550
questions so what we've got here is the five-year revenue

821
00:37:59,550 --> 00:38:01,599
requirement a lot of

822
00:38:01,599 --> 00:38:05,090
numbers let me just highlight a few things bottom line for

823
00:38:05,090 --> 00:38:07,199
fiscal year 2019

824
00:38:07,199 --> 00:38:11,739
you've got a total revenue requirement of just over 33

825
00:38:11,739 --> 00:38:14,320
million dollars by 2023

826
00:38:14,320 --> 00:38:18,369
if you look at that bottom right corner it's about 34.3

827
00:38:18,369 --> 00:38:19,760
million dollars bottom

828
00:38:19,760 --> 00:38:24,659
line coupled with watching some of the cost the debt

829
00:38:24,659 --> 00:38:26,380
service reduction even

830
00:38:26,380 --> 00:38:29,619
with increasing pay-as-you-go for your equipment if you

831
00:38:29,619 --> 00:38:30,599
look at that that's

832
00:38:30,599 --> 00:38:36,360
about a 1% increase per year it's very manageable it's very

833
00:38:36,360 --> 00:38:37,199
reasonable and

834
00:38:37,199 --> 00:38:43,559
again you know that that's good news from that standpoint

835
00:38:43,559 --> 00:38:47,800
the next slide what

836
00:38:47,800 --> 00:38:52,900
we're showing here are the fully loaded cost of service if

837
00:38:52,900 --> 00:38:55,980
you go back well I'm

838
00:38:55,980 --> 00:39:00,079
not going to go back but if you had looked before what we

839
00:39:00,079 --> 00:39:01,360
've done here is

840
00:39:01,360 --> 00:39:05,510
we've allocated to for instance residential collection

841
00:39:05,510 --> 00:39:07,320
services there's

842
00:39:07,320 --> 00:39:11,599
of about the 280,000 tons a year of garbage it comes into

843
00:39:11,599 --> 00:39:12,199
your landfill

844
00:39:12,199 --> 00:39:16,320
about 29,000 tons a year is picked up by your residential

845
00:39:16,320 --> 00:39:17,920
trucks in this slide

846
00:39:17,920 --> 00:39:22,360
versus the prior slide we've allocated the disposal cost to

847
00:39:22,360 --> 00:39:23,360
the residential

848
00:39:23,360 --> 00:39:26,880
collection services so on the prior slide it was a little

849
00:39:26,880 --> 00:39:28,320
over 11 million or

850
00:39:28,320 --> 00:39:33,519
11.3 million now it's at point 12.3 million because we've

851
00:39:33,519 --> 00:39:34,760
allocated the

852
00:39:34,760 --> 00:39:41,000
disposal cost associated with residential garbage service

853
00:39:41,000 --> 00:39:42,760
okay the red and green

854
00:39:42,760 --> 00:39:47,639
bottom line the green show the services that are covering

855
00:39:47,639 --> 00:39:49,219
their costs recovering

856
00:39:49,219 --> 00:39:52,579
their costs the red ones are those that are under

857
00:39:52,579 --> 00:39:54,619
recovering and again we'll

858
00:39:54,619 --> 00:39:58,190
talk about that in just a few minutes with regard to some

859
00:39:58,190 --> 00:39:58,679
of our

860
00:39:58,679 --> 00:40:03,349
recommendations and that's the key things I want to focus

861
00:40:03,349 --> 00:40:04,800
on there and I'll

862
00:40:04,800 --> 00:40:08,510
be glad to take more questions at the end on that but you

863
00:40:08,510 --> 00:40:10,000
can see overall your

864
00:40:10,000 --> 00:40:15,199
commercial services are doing well something I want to show

865
00:40:15,199 --> 00:40:15,880
that again

866
00:40:15,880 --> 00:40:19,420
going back to the annual debt service and revenue funding

867
00:40:19,420 --> 00:40:20,599
this is a key slide

868
00:40:20,599 --> 00:40:24,300
that gives you some flexibility going forward if you look

869
00:40:24,300 --> 00:40:25,480
at your current debt

870
00:40:25,480 --> 00:40:29,530
service and fiscal year 2019 it's just under nine million

871
00:40:29,530 --> 00:40:30,159
dollars at eight

872
00:40:30,159 --> 00:40:33,409
million nine hundred ninety five thousand dollars it does

873
00:40:33,409 --> 00:40:35,039
decrease over

874
00:40:35,039 --> 00:40:39,090
the next five years to five point one million dollars which

875
00:40:39,090 --> 00:40:40,239
again that debt

876
00:40:40,239 --> 00:40:44,739
service is rolling off if you notice there's some projected

877
00:40:44,739 --> 00:40:45,880
new serve debt

878
00:40:45,880 --> 00:40:51,260
service starting in 2021 but it's very minimal and you

879
00:40:51,260 --> 00:40:53,280
still have a significant

880
00:40:53,280 --> 00:40:57,639
reduction there what that allows you to do then is the

881
00:40:57,639 --> 00:40:59,280
replacement fund one of

882
00:40:59,280 --> 00:41:03,050
the things we've put in and again spent a lot of time with

883
00:41:03,050 --> 00:41:04,320
staff what we looked

884
00:41:04,320 --> 00:41:09,039
at was the equipment needs you have for your utility

885
00:41:09,039 --> 00:41:10,119
whether it's residential

886
00:41:10,119 --> 00:41:14,170
garbage collection trucks recycling trucks your commercial

887
00:41:14,170 --> 00:41:14,920
front loads your

888
00:41:14,920 --> 00:41:18,500
roll-offs all that equipment there's typically a life cycle

889
00:41:18,500 --> 00:41:19,119
that's put

890
00:41:19,119 --> 00:41:22,239
together when does it have to be replaced when is it

891
00:41:22,239 --> 00:41:23,480
cheaper to replace

892
00:41:23,480 --> 00:41:27,619
it versus to keep trying to fix it that equipment takes a

893
00:41:27,619 --> 00:41:29,679
lot of wear and tear so

894
00:41:29,679 --> 00:41:34,400
that's factored in to develop in this replacement fund okay

895
00:41:34,400 --> 00:41:35,679
so bottom line

896
00:41:35,679 --> 00:41:39,420
what's built into that revenue requirement that I showed

897
00:41:39,420 --> 00:41:40,760
you that was only increasing

898
00:41:40,760 --> 00:41:45,630
1% a year is setting aside these funds where it's starting

899
00:41:45,630 --> 00:41:46,239
at six hundred and

900
00:41:46,239 --> 00:41:51,380
twenty thousand dollars in 2019 and it grows to three point

901
00:41:51,380 --> 00:41:52,159
three million

902
00:41:52,159 --> 00:41:58,000
dollars in 2023 so again I want to emphasize built into

903
00:41:58,000 --> 00:42:00,119
that 1% increase in

904
00:42:00,119 --> 00:42:04,199
the revenue requirement with the debt service rolling off

905
00:42:04,199 --> 00:42:05,039
you're able to

906
00:42:05,039 --> 00:42:08,530
increase the cash you're setting aside so you can pay cash

907
00:42:08,530 --> 00:42:09,760
for this equipment

908
00:42:09,760 --> 00:42:17,110
and minimize the issuance of debt so really good good story

909
00:42:17,110 --> 00:42:18,719
there question

910
00:42:18,719 --> 00:42:22,219
yes on the on the debt service that's rolling off is is

911
00:42:22,219 --> 00:42:24,000
that associated with

912
00:42:24,000 --> 00:42:28,880
just what you said the equipment trucks and it's a

913
00:42:28,880 --> 00:42:30,239
combination of things but I

914
00:42:30,239 --> 00:42:34,289
call short-term assets yeah it's equipment and the landfill

915
00:42:34,289 --> 00:42:34,880
so it's a

916
00:42:34,880 --> 00:42:41,420
combination of rolling stock and the landfill okay and then

917
00:42:41,420 --> 00:42:43,280
the projected new

918
00:42:43,280 --> 00:42:48,469
debt service the projected new debt service some of that is

919
00:42:48,469 --> 00:42:49,199
related to

920
00:42:49,199 --> 00:42:53,440
rolling stock so some equipment can't move straight to a

921
00:42:53,440 --> 00:42:54,920
cash right paying as

922
00:42:54,920 --> 00:42:59,159
you go so it's a combination of both so you're increasing

923
00:42:59,159 --> 00:43:00,440
the cash minimum

924
00:43:00,440 --> 00:43:05,800
reducing your debt in 2023 there is a little bit of funding

925
00:43:05,800 --> 00:43:07,920
for design

926
00:43:07,920 --> 00:43:11,969
planning engineering consulting services for the new cell

927
00:43:11,969 --> 00:43:13,079
that you will be

928
00:43:13,079 --> 00:43:21,760
building okay and this is really the bottom well this is

929
00:43:21,760 --> 00:43:22,239
one of the key

930
00:43:22,239 --> 00:43:24,980
things I want to focus on it's pretty close to be in the

931
00:43:24,980 --> 00:43:26,840
bottom line when you

932
00:43:26,840 --> 00:43:31,559
look at the utility overall it's under recovering about

933
00:43:31,559 --> 00:43:32,159
three hundred and four

934
00:43:32,159 --> 00:43:35,340
thousand dollars are projected to under recover three

935
00:43:35,340 --> 00:43:36,840
hundred and four thousand

936
00:43:36,840 --> 00:43:41,599
dollars in 2019 however what I want to emphasize with

937
00:43:41,599 --> 00:43:42,920
project the continued

938
00:43:42,920 --> 00:43:48,760
projected growth in the city and with that cost containment

939
00:43:48,760 --> 00:43:51,440
1% increases there

940
00:43:51,440 --> 00:43:57,139
you're projected to over recover gradually over time so by

941
00:43:57,139 --> 00:43:59,679
2023 at these

942
00:43:59,679 --> 00:44:04,360
projected costs you'd have a over recovery of about 3.7

943
00:44:04,360 --> 00:44:06,480
million cumulative

944
00:44:06,480 --> 00:44:11,510
over recovery of about 8.1 million as we all know there are

945
00:44:11,510 --> 00:44:12,480
a lot of things that

946
00:44:12,480 --> 00:44:18,030
can happen to you know create surprises I'll give you an

947
00:44:18,030 --> 00:44:19,199
example you're in the

948
00:44:19,199 --> 00:44:23,250
commercial roll-off business when a recession hits we work

949
00:44:23,250 --> 00:44:24,360
with clients that

950
00:44:24,360 --> 00:44:29,630
business that can drop by two-thirds and that again fixed

951
00:44:29,630 --> 00:44:31,119
cost business that

952
00:44:31,119 --> 00:44:36,000
revenue can drop quickly so we didn't bake in a recession

953
00:44:36,000 --> 00:44:37,519
here because we're

954
00:44:37,519 --> 00:44:42,039
not that good at forecasting those things but this is based

955
00:44:42,039 --> 00:44:42,239
on a

956
00:44:42,239 --> 00:44:47,210
conservative forecast going forward okay so overall the

957
00:44:47,210 --> 00:44:49,119
utilities in good shape

958
00:44:49,119 --> 00:44:58,090
going forward so the findings recommendations we have we do

959
00:44:58,090 --> 00:44:58,960
not I

960
00:44:58,960 --> 00:45:02,519
know you've had a recent decrease in the residential rate

961
00:45:02,519 --> 00:45:03,519
we would not

962
00:45:03,519 --> 00:45:07,900
recommend any further decreases in the residential rates in

963
00:45:07,900 --> 00:45:09,840
fiscal year 2019

964
00:45:09,840 --> 00:45:14,440
and for the foreseeable future I'd keep them as is we would

965
00:45:14,440 --> 00:45:16,599
recommend that you

966
00:45:16,599 --> 00:45:18,800
increase the wholesale rate you have about a hundred

967
00:45:18,800 --> 00:45:19,760
thousand tons a year

968
00:45:19,760 --> 00:45:24,059
that comes in from private contractors and we would

969
00:45:24,059 --> 00:45:26,280
recommend and we looked at

970
00:45:26,280 --> 00:45:30,489
the market we talked to numerous folks we would recommend

971
00:45:30,489 --> 00:45:31,400
an increase there

972
00:45:31,400 --> 00:45:37,159
from 23 to 2450 per ton it's a dollar 50 per ton it would

973
00:45:37,159 --> 00:45:38,840
generate about another

974
00:45:38,840 --> 00:45:41,909
hundred and fifty thousand dollars one of the things

975
00:45:41,909 --> 00:45:43,519
whenever we work with folks

976
00:45:43,519 --> 00:45:47,619
on this we recommend small incremental changes if you're

977
00:45:47,619 --> 00:45:48,480
doing this versus

978
00:45:48,480 --> 00:45:53,130
drastic increases you don't want to chase off the tonnage

979
00:45:53,130 --> 00:45:54,280
again in a fixed

980
00:45:54,280 --> 00:45:58,329
cost business but I would start recommending you look at

981
00:45:58,329 --> 00:45:59,639
moving that up

982
00:45:59,639 --> 00:46:03,869
we'd also recommend you look at put or pay contracts if you

983
00:46:03,869 --> 00:46:04,840
're familiar with

984
00:46:04,840 --> 00:46:08,329
them on the water side with taker pay contracts it's very

985
00:46:08,329 --> 00:46:09,280
similar in other

986
00:46:09,280 --> 00:46:11,949
words if you have a contract let's say with waste

987
00:46:11,949 --> 00:46:13,500
connections and they say we'll

988
00:46:13,500 --> 00:46:17,800
bring you 30,000 tons a year at this rate then if they only

989
00:46:17,800 --> 00:46:19,440
bring you 27,000

990
00:46:19,440 --> 00:46:25,230
tons they still pay for 30,000 tons okay we'd also

991
00:46:25,230 --> 00:46:27,159
recommend you maintain the

992
00:46:27,159 --> 00:46:30,539
commercial dumpster rates that you have right now you may

993
00:46:30,539 --> 00:46:31,719
want to look at

994
00:46:31,719 --> 00:46:34,489
modifying them in the future I think the key thing I want

995
00:46:34,489 --> 00:46:35,920
to emphasize right now

996
00:46:35,920 --> 00:46:40,050
we're not recommending any rate changes other than that

997
00:46:40,050 --> 00:46:42,800
wholesale rate from $23

998
00:46:42,800 --> 00:46:47,719
to $24.50 what I would recommend is during this fiscal year

999
00:46:47,719 --> 00:46:48,920
2019 you kind of

1000
00:46:48,920 --> 00:46:52,429
look at some of your rates versus your recoveries and under

1001
00:46:52,429 --> 00:46:53,400
recoveries what

1002
00:46:53,400 --> 00:46:56,510
have you to put a game plan together but you have the

1003
00:46:56,510 --> 00:46:57,679
luxury of having this

1004
00:46:57,679 --> 00:47:00,750
upcoming fiscal year to kind of figure out okay where do we

1005
00:47:00,750 --> 00:47:01,639
want to go going

1006
00:47:01,639 --> 00:47:04,610
forward for the next five years so it's really nice you

1007
00:47:04,610 --> 00:47:05,519
have that luxury of

1008
00:47:05,519 --> 00:47:09,239
being able to plan for that tied to that you may want to

1009
00:47:09,239 --> 00:47:11,280
look at your commercial

1010
00:47:11,280 --> 00:47:14,849
rate structure and how that's set up you might want to look

1011
00:47:14,849 --> 00:47:16,039
at tweaking that a

1012
00:47:16,039 --> 00:47:21,590
little bit key thing and especially with a community that's

1013
00:47:21,590 --> 00:47:23,960
growing it's really

1014
00:47:23,960 --> 00:47:27,519
important to look and make sure that you're you've got all

1015
00:47:27,519 --> 00:47:28,480
of your proper

1016
00:47:28,480 --> 00:47:32,639
container counts everybody's being billed as they should be

1017
00:47:32,639 --> 00:47:33,639
both on

1018
00:47:33,639 --> 00:47:38,519
commercial residential the recycling customers and also at

1019
00:47:38,519 --> 00:47:40,300
the landfill there

1020
00:47:40,300 --> 00:47:42,659
a number of different services provided there I know you've

1021
00:47:42,659 --> 00:47:43,320
had some other

1022
00:47:43,320 --> 00:47:47,530
presentations on that recently but being able to track the

1023
00:47:47,530 --> 00:47:49,199
specific tonnages by

1024
00:47:49,199 --> 00:47:53,250
the specific services helps you to figure out okay how our

1025
00:47:53,250 --> 00:47:54,039
how's our cost

1026
00:47:54,039 --> 00:48:00,650
recovery versus the costs incurred okay and then what we

1027
00:48:00,650 --> 00:48:02,000
just said is you know

1028
00:48:02,000 --> 00:48:05,489
any over recoveries again setting those aside into a

1029
00:48:05,489 --> 00:48:08,079
restricted reserve would be

1030
00:48:08,079 --> 00:48:12,139
good again keep in mind you will be looking at a new

1031
00:48:12,139 --> 00:48:14,079
landfill cell out in

1032
00:48:14,079 --> 00:48:20,320
fiscal year 2024 and then finally there was some discussion

1033
00:48:20,320 --> 00:48:21,559
again like I said

1034
00:48:21,559 --> 00:48:25,610
looking at 2019 and what do you want to consider as far as

1035
00:48:25,610 --> 00:48:26,880
tweaking rates and

1036
00:48:26,880 --> 00:48:30,260
here's the key thing I want to emphasize if you're looking

1037
00:48:30,260 --> 00:48:31,519
at your rate structure

1038
00:48:31,519 --> 00:48:35,269
we're talking about tweaking things or moving things you

1039
00:48:35,269 --> 00:48:36,480
know evaluating those

1040
00:48:36,480 --> 00:48:40,530
options there's nothing major that you have to look at and

1041
00:48:40,530 --> 00:48:41,280
that's the the good

1042
00:48:41,280 --> 00:48:47,369
news and with that that's my presentation I'm glad to take

1043
00:48:47,369 --> 00:48:48,400
any any more questions

1044
00:48:48,400 --> 00:48:57,239
you may have questions I had one I think you maybe

1045
00:48:57,239 --> 00:48:58,639
addressed it this the slide

1046
00:48:58,639 --> 00:49:11,420
well slide 11 that that we keep it's showing that we're we

1047
00:49:11,420 --> 00:49:12,880
're not collecting

1048
00:49:12,880 --> 00:49:22,400
enough slide 11 there we go did our recent rate reduction

1049
00:49:22,400 --> 00:49:23,920
make that happen

1050
00:49:23,920 --> 00:49:35,440
or you had a lot of moving parts here that that is correct

1051
00:49:35,440 --> 00:49:37,280
that was a component

1052
00:49:37,280 --> 00:49:40,440
of it one of the things we always say you remember those 22

1053
00:49:40,440 --> 00:49:41,519
service categories

1054
00:49:41,519 --> 00:49:46,789
I showed you you never know exactly where you are until I

1055
00:49:46,789 --> 00:49:47,360
mean to give you

1056
00:49:47,360 --> 00:49:51,039
an idea you know the hundred-plus employees you have all

1057
00:49:51,039 --> 00:49:52,400
the equipment we

1058
00:49:52,400 --> 00:49:56,010
went through exercise which is what we always do in cost of

1059
00:49:56,010 --> 00:49:57,119
service studies

1060
00:49:57,119 --> 00:50:02,280
where every person every piece of equipment is allocated to

1061
00:50:02,280 --> 00:50:03,480
those 22

1062
00:50:03,480 --> 00:50:06,719
different services and some of them pretty easy you say hey

1063
00:50:06,719 --> 00:50:07,519
you know this

1064
00:50:07,519 --> 00:50:10,579
this guy is out there he's collecting garbage five days a

1065
00:50:10,579 --> 00:50:11,360
week he's a hundred

1066
00:50:11,360 --> 00:50:15,489
percent on residential refuse or you know whatever and that

1067
00:50:15,489 --> 00:50:16,320
piece of equipment

1068
00:50:16,320 --> 00:50:19,389
but then there are other pieces they may be allocated and

1069
00:50:19,389 --> 00:50:20,639
there's certain work

1070
00:50:20,639 --> 00:50:24,139
that seasonal also so you have to allocate that so there

1071
00:50:24,139 --> 00:50:25,519
was a lot of work

1072
00:50:25,519 --> 00:50:29,570
that went into allocating all those costs and so what I

1073
00:50:29,570 --> 00:50:30,599
always say is you

1074
00:50:30,599 --> 00:50:34,989
never know where what your costs are until you go through

1075
00:50:34,989 --> 00:50:36,360
an exercise like

1076
00:50:36,360 --> 00:50:43,969
this so it's a combination of things there okay and then on

1077
00:50:43,969 --> 00:50:45,559
the 2250 for the

1078
00:50:45,559 --> 00:50:49,920
landfill rate what are other rates around us is that you

1079
00:50:49,920 --> 00:50:50,400
said you did a

1080
00:50:50,400 --> 00:50:54,519
market right analysis yeah generally speaking and I'll give

1081
00:50:54,519 --> 00:50:54,960
you a broad

1082
00:50:54,960 --> 00:50:59,380
range you're looking at around 30 to 35 dollars this what

1083
00:50:59,380 --> 00:51:00,880
the the post to gate

1084
00:51:00,880 --> 00:51:06,199
rate now here's the one thing oh here's my caveat those are

1085
00:51:06,199 --> 00:51:07,559
posted gate rates

1086
00:51:07,559 --> 00:51:12,059
now if someone is bringing a large volume you will get a

1087
00:51:12,059 --> 00:51:13,480
discounted rate

1088
00:51:13,480 --> 00:51:17,550
that you won't know and especially if it's a private they

1089
00:51:17,550 --> 00:51:19,000
do not want to share

1090
00:51:19,000 --> 00:51:22,730
and say what we're giving you know as far as a discounted

1091
00:51:22,730 --> 00:51:23,960
rate but the gate

1092
00:51:23,960 --> 00:51:27,449
rates we're seeing that are posted are 30 to 35 dollars

1093
00:51:27,449 --> 00:51:29,000
kind of the benchmark

1094
00:51:29,000 --> 00:51:32,760
of who sets the the standard in the DFW area but you're

1095
00:51:32,760 --> 00:51:34,119
pretty far away so

1096
00:51:34,119 --> 00:51:38,170
transportation costs become an issue but you know overall

1097
00:51:38,170 --> 00:51:39,559
lowest is the Dallas

1098
00:51:39,559 --> 00:51:43,800
McComas Bluff landfill we spend time talking with those

1099
00:51:43,800 --> 00:51:44,679
folks because they

1100
00:51:44,679 --> 00:51:49,849
have a put or pay contract process they offer lower rates

1101
00:51:49,849 --> 00:51:51,679
for higher volumes

1102
00:51:51,679 --> 00:51:56,239
with that said your you know they have rates that decline

1103
00:51:56,239 --> 00:51:57,920
lower than you know

1104
00:51:57,920 --> 00:52:04,519
the 23 24 but you're still cheaper up here generally

1105
00:52:04,519 --> 00:52:06,000
speaking that moving

1106
00:52:06,000 --> 00:52:09,769
again a dollar dollar 50 you should be in pretty good shape

1107
00:52:09,769 --> 00:52:10,760
from that standpoint

1108
00:52:10,760 --> 00:52:15,510
and we're not so cheap that we're getting too much garbage

1109
00:52:15,510 --> 00:52:16,360
so that we

1110
00:52:16,360 --> 00:52:20,539
can't serve our own citizens over no I mean you're not from

1111
00:52:20,539 --> 00:52:21,800
that standpoint it

1112
00:52:21,800 --> 00:52:25,329
does bring up and again it's one of those issues in cities

1113
00:52:25,329 --> 00:52:26,480
wrestle with this

1114
00:52:26,480 --> 00:52:30,530
topic how much waste do you want to bring in from outside

1115
00:52:30,530 --> 00:52:31,440
if you have

1116
00:52:31,440 --> 00:52:35,119
capacity and again that it cuts both ways so I'm not saying

1117
00:52:35,119 --> 00:52:36,199
what you should

1118
00:52:36,199 --> 00:52:39,260
or shouldn't do but you know for instance we've been

1119
00:52:39,260 --> 00:52:40,119
working with the

1120
00:52:40,119 --> 00:52:44,840
city of Tucson for the last 15 years they bring in a

1121
00:52:44,840 --> 00:52:46,119
significant amount of

1122
00:52:46,119 --> 00:52:51,960
waste they compete in their market but they bring in waste

1123
00:52:51,960 --> 00:52:54,400
from outside just

1124
00:52:54,400 --> 00:52:57,469
their city residential and commercial trucks it's still

1125
00:52:57,469 --> 00:52:58,400
collected in the city

1126
00:52:58,400 --> 00:53:04,429
but by other by privates but it can be a source of revenue

1127
00:53:04,429 --> 00:53:06,199
for you but it does

1128
00:53:06,199 --> 00:53:09,420
fill up your airspace so you've got to figure out what your

1129
00:53:09,420 --> 00:53:10,400
balance is there

1130
00:53:10,400 --> 00:53:15,519
and what you want so you I think you mentioned a hundred

1131
00:53:15,519 --> 00:53:17,760
thousand tons about

1132
00:53:17,760 --> 00:53:22,800
it's what we average right from wholesale customers is the

1133
00:53:22,800 --> 00:53:23,599
the cost of

1134
00:53:23,599 --> 00:53:27,199
service on wholesale does that take into account airspace

1135
00:53:27,199 --> 00:53:29,000
it's being taken up yes

1136
00:53:29,000 --> 00:53:43,889
no it factors all that in other comments I'll just go ahead

1137
00:53:43,889 --> 00:53:44,119
to outside garbage

1138
00:53:44,119 --> 00:53:49,650
coming in because you know I don't understand that I guess

1139
00:53:49,650 --> 00:53:49,880
I don't I think

1140
00:53:49,880 --> 00:53:56,449
the you may want to answer this my general idea is if you

1141
00:53:56,449 --> 00:53:57,840
're if you're we

1142
00:53:57,840 --> 00:54:06,809
shouldn't be we should be recovering our cost larger that's

1143
00:54:06,809 --> 00:54:10,599
my it is it is a as

1144
00:54:10,599 --> 00:54:16,360
Dave said it's it's a source of revenue that offsets fixed

1145
00:54:16,360 --> 00:54:22,760
costs we have but do

1146
00:54:22,760 --> 00:54:26,920
we know that it's actually offsetting anything I mean look

1147
00:54:26,920 --> 00:54:27,760
at those numbers to

1148
00:54:27,760 --> 00:54:30,000
see if it's worth taking that I can take a stab at this

1149
00:54:30,000 --> 00:54:31,159
this is definitely a kind

1150
00:54:31,159 --> 00:54:34,030
of a policy discussion and probably one that we don't have

1151
00:54:34,030 --> 00:54:34,880
a lot of time for

1152
00:54:34,880 --> 00:54:38,260
today but at a high level a lot of landfills will look at

1153
00:54:38,260 --> 00:54:39,099
bringing in

1154
00:54:39,099 --> 00:54:43,150
outside waste not to cover cost what your goal would be is

1155
00:54:43,150 --> 00:54:44,320
we cover our cost

1156
00:54:44,320 --> 00:54:49,519
for our citizens through rate recovery then you can also

1157
00:54:49,519 --> 00:54:50,960
look at subsidizing

1158
00:54:50,960 --> 00:54:54,280
what you have in the city your residents your businesses by

1159
00:54:54,280 --> 00:54:55,440
bringing in outside

1160
00:54:55,440 --> 00:54:59,070
waste and so it really comes down to the landfills an asset

1161
00:54:59,070 --> 00:55:00,320
the airspace is an

1162
00:55:00,320 --> 00:55:04,800
asset do we want to accept outside waste to help subsidize

1163
00:55:04,800 --> 00:55:05,880
and reduce rates for

1164
00:55:05,880 --> 00:55:08,940
our citizens and our businesses and so that's that's why

1165
00:55:08,940 --> 00:55:09,920
you see some of those

1166
00:55:09,920 --> 00:55:12,019
they can offer those that reduced rates because it's

1167
00:55:12,019 --> 00:55:13,239
basically dealing with pure

1168
00:55:13,239 --> 00:55:15,590
profit at that stage because you've already covered all

1169
00:55:15,590 --> 00:55:16,679
your costs through

1170
00:55:16,679 --> 00:55:20,170
your curbside rates we're not there yet but as mr. Yankee

1171
00:55:20,170 --> 00:55:21,639
said we're financially

1172
00:55:21,639 --> 00:55:24,199
positioned that we can let the market kind of come to us

1173
00:55:24,199 --> 00:55:25,260
over the next four to

1174
00:55:25,260 --> 00:55:29,329
five years and we've much we have much more flexibility as

1175
00:55:29,329 --> 00:55:30,480
a utility to kind of

1176
00:55:30,480 --> 00:55:34,110
deal with do we want to compete and if so at what level and

1177
00:55:34,110 --> 00:55:35,000
what is that air

1178
00:55:35,000 --> 00:55:39,050
space really worth in terms of selling in the open market

1179
00:55:39,050 --> 00:55:39,840
where we've been up

1180
00:55:39,840 --> 00:55:42,909
to this point is we've been kind of strapped by debt to

1181
00:55:42,909 --> 00:55:43,960
where if wholesale

1182
00:55:43,960 --> 00:55:46,119
were to leave today we'd have a two to three million dollar

1183
00:55:46,119 --> 00:55:46,960
hole in our budget

1184
00:55:46,960 --> 00:55:50,030
that we'd be hard-pressed to cover and so we're not

1185
00:55:50,030 --> 00:55:51,599
competitively where we need

1186
00:55:51,599 --> 00:55:53,969
to be but in the next four to five years I think we will

1187
00:55:53,969 --> 00:55:55,239
definitely be well

1188
00:55:55,239 --> 00:55:57,619
positioned to take advantage of that if we want to do it so

1189
00:55:57,619 --> 00:56:00,800
that makes sense yes

1190
00:56:00,800 --> 00:56:06,349
right okay there's no other questions for mr. Yankee I do

1191
00:56:06,349 --> 00:56:07,280
have a few things

1192
00:56:07,280 --> 00:56:11,800
that I can follow up on just from a management standpoint

1193
00:56:19,000 --> 00:56:22,309
all right so thank you to Dave also again I want to

1194
00:56:22,309 --> 00:56:23,880
reiterate thank you to

1195
00:56:23,880 --> 00:56:26,949
our staff they've done a tremendous amount of work Lee

1196
00:56:26,949 --> 00:56:28,119
Rodriguez Tina Eck

1197
00:56:28,119 --> 00:56:32,170
Nick Vincent it's been a kind of a team effort as we work

1198
00:56:32,170 --> 00:56:32,880
through this budget

1199
00:56:32,880 --> 00:56:35,849
process like I said we started last June on our budget and

1200
00:56:35,849 --> 00:56:36,760
so we hope to bring

1201
00:56:36,760 --> 00:56:39,400
that forward to you in the next few next couple of weeks

1202
00:56:39,400 --> 00:56:40,880
and then we'll also be

1203
00:56:40,880 --> 00:56:45,039
talking a little bit about rates we do have some right

1204
00:56:45,039 --> 00:56:45,840
corrections that need to

1205
00:56:45,840 --> 00:56:48,590
be addressed as mr. Yankee said it's definitely doable with

1206
00:56:48,590 --> 00:56:49,219
where we are

1207
00:56:49,219 --> 00:56:52,800
positioned financially what we're really talking about is

1208
00:56:52,800 --> 00:56:53,039
is rate

1209
00:56:53,039 --> 00:56:57,269
subsidization and the little green and red font that he had

1210
00:56:57,269 --> 00:56:58,000
up there gave you

1211
00:56:58,000 --> 00:57:01,550
an indication of what's a recovering its cost and what's

1212
00:57:01,550 --> 00:57:03,079
under recovering our

1213
00:57:03,079 --> 00:57:07,030
goal unless directed otherwise as a service provider would

1214
00:57:07,030 --> 00:57:08,000
be cost recovery

1215
00:57:08,000 --> 00:57:11,150
through equitable rate design what that means is if you're

1216
00:57:11,150 --> 00:57:12,159
using the service

1217
00:57:12,159 --> 00:57:15,659
you're paying cost and nothing more for our residents and

1218
00:57:15,659 --> 00:57:17,719
our businesses we do

1219
00:57:17,719 --> 00:57:20,179
have some rate subsidization that's happening between and

1220
00:57:20,179 --> 00:57:20,719
within rate

1221
00:57:20,719 --> 00:57:24,039
classes what that means is you may have residents subsid

1222
00:57:24,039 --> 00:57:25,400
izing a program at the

1223
00:57:25,400 --> 00:57:28,469
landfill that's not recovering its cost likewise you may

1224
00:57:28,469 --> 00:57:28,960
have a business

1225
00:57:28,960 --> 00:57:31,699
subsidizing a residential program that's not recovering its

1226
00:57:31,699 --> 00:57:33,039
cost as well and so

1227
00:57:33,039 --> 00:57:36,329
kind of tying that back to the operational discussion we

1228
00:57:36,329 --> 00:57:37,079
had a couple

1229
00:57:37,079 --> 00:57:39,909
of weeks ago is if we have a program that's not performing

1230
00:57:39,909 --> 00:57:40,800
and not recovering

1231
00:57:40,800 --> 00:57:46,000
its cost we're not trying to dismantle programs that both

1232
00:57:46,000 --> 00:57:46,840
the board and the

1233
00:57:46,840 --> 00:57:49,909
council want to keep but we really feel like it's important

1234
00:57:49,909 --> 00:57:50,760
that we present that

1235
00:57:50,760 --> 00:57:53,079
to you all and give you a clear indication of here's what

1236
00:57:53,079 --> 00:57:53,800
the program's

1237
00:57:53,800 --> 00:57:56,869
purpose is here's what's intended to do and if we want to

1238
00:57:56,869 --> 00:57:58,239
continue going on it's

1239
00:57:58,239 --> 00:58:00,590
going to need to be subsidized in some form or fashion and

1240
00:58:00,590 --> 00:58:01,280
this is how we go

1241
00:58:01,280 --> 00:58:03,559
about that we just want to be very candid and transparent

1242
00:58:03,559 --> 00:58:05,320
about it our

1243
00:58:05,320 --> 00:58:07,780
approach on this like mr. Yankee said is we want to make

1244
00:58:07,780 --> 00:58:08,639
sure that we don't have

1245
00:58:08,639 --> 00:58:11,139
drastic changes in our rates one way or the other so we

1246
00:58:11,139 --> 00:58:12,400
want to try to phase in

1247
00:58:12,400 --> 00:58:16,000
corrections over time number one because we do compete

1248
00:58:16,000 --> 00:58:16,800
unlike some of the other

1249
00:58:16,800 --> 00:58:19,869
utilities we have market rates that we have to be sensitive

1250
00:58:19,869 --> 00:58:20,760
to for the landfill

1251
00:58:20,760 --> 00:58:24,809
we also compete for commercial recycling and so we can't

1252
00:58:24,809 --> 00:58:26,159
have a lot of drastic

1253
00:58:26,159 --> 00:58:29,219
rate swings otherwise we may end up losing some of that

1254
00:58:29,219 --> 00:58:30,280
business so we want

1255
00:58:30,280 --> 00:58:33,599
to phase those in over time and protect the funds financial

1256
00:58:33,599 --> 00:58:35,159
health as Dave said

1257
00:58:35,159 --> 00:58:38,630
we've reduced our debt funding significantly I think he did

1258
00:58:38,630 --> 00:58:39,119
a really

1259
00:58:39,119 --> 00:58:41,610
nice job of illustrating what our goal is to try to get

1260
00:58:41,610 --> 00:58:42,639
more cash funding or

1261
00:58:42,639 --> 00:58:46,690
pay-as-you-go and also to the operational review we want to

1262
00:58:46,690 --> 00:58:46,800
improve

1263
00:58:46,800 --> 00:58:50,289
operational efficiency I'll highlight what that looks like

1264
00:58:50,289 --> 00:58:50,920
on the next slide

1265
00:58:50,920 --> 00:58:54,150
and then like I said evaluating those subsidized programs

1266
00:58:54,150 --> 00:58:55,159
and services and

1267
00:58:55,159 --> 00:58:57,559
just making sure that we're all kind of calibrated on what

1268
00:58:57,559 --> 00:58:58,320
we want to do with

1269
00:58:58,320 --> 00:59:02,840
those moving forward for the rate of classes that we're

1270
00:59:02,840 --> 00:59:03,760
talking about I want

1271
00:59:03,760 --> 00:59:06,510
to highlight just a little bit of our approach on that like

1272
00:59:06,510 --> 00:59:07,199
Dave said with

1273
00:59:07,199 --> 00:59:09,789
residential we would maintain rates at existing levels that

1274
00:59:09,789 --> 00:59:10,599
being said there

1275
00:59:10,599 --> 00:59:13,250
may be opportunities to adjust rates if we are able to

1276
00:59:13,250 --> 00:59:14,239
drastically improve

1277
00:59:14,239 --> 00:59:16,949
operational efficiency some of the things that you heard in

1278
00:59:16,949 --> 00:59:17,760
the operational

1279
00:59:17,760 --> 00:59:20,829
review where we can improve routing increase route sizes

1280
00:59:20,829 --> 00:59:21,719
maybe reduce the

1281
00:59:21,719 --> 00:59:24,389
number of trucks that we have to have on the road fleet

1282
00:59:24,389 --> 00:59:25,320
maintenance is one of

1283
00:59:25,320 --> 00:59:28,010
those key factors that are key recommendations that came

1284
00:59:28,010 --> 00:59:28,559
out of that

1285
00:59:28,559 --> 00:59:31,849
report as well is we're carrying a very heavy part of our

1286
00:59:31,849 --> 00:59:33,000
fleet is back up if

1287
00:59:33,000 --> 00:59:35,159
our fleet starts performing better then that's a

1288
00:59:35,159 --> 00:59:36,639
substantial reduction in cost

1289
00:59:36,639 --> 00:59:39,710
and you're getting closer to a full cash funding versus

1290
00:59:39,710 --> 00:59:40,679
debt funding some of

1291
00:59:40,679 --> 00:59:44,409
your rolling stock and then we do have some of the under

1292
00:59:44,409 --> 00:59:45,559
performing programs

1293
00:59:45,559 --> 00:59:48,630
that we want to assess and seek direction from our

1294
00:59:48,630 --> 00:59:49,679
residential yard waste

1295
00:59:49,679 --> 00:59:52,170
is one that kind of comes to mind is it's it's about six

1296
00:59:52,170 --> 00:59:53,320
dollars a month on

1297
00:59:53,320 --> 00:59:55,429
everybody's residential bill it's bundled in with your

1298
00:59:55,429 --> 00:59:57,280
residential rates not

1299
00:59:57,280 --> 00:59:59,460
everyone's using that every month and so that's what we

1300
00:59:59,460 --> 01:00:00,440
talked about when it's

1301
01:00:00,440 --> 01:00:03,539
subsidized doesn't mean it's a bad thing it's just one of

1302
01:00:03,539 --> 01:00:04,280
those things we want to

1303
01:00:04,280 --> 01:00:07,349
make sure that we're kind of calibrated with how we're

1304
01:00:07,349 --> 01:00:09,159
performing that from a

1305
01:00:09,159 --> 01:00:12,650
commercial rate structure standpoint if you look at our

1306
01:00:12,650 --> 01:00:14,440
rates on the page they

1307
01:00:14,440 --> 01:00:16,730
don't really give a full indication the complexity that's

1308
01:00:16,730 --> 01:00:17,679
there with commercial

1309
01:00:17,679 --> 01:00:21,420
rates so our goal with this year's race is to make sure

1310
01:00:21,420 --> 01:00:22,280
that everything is very

1311
01:00:22,280 --> 01:00:25,769
transparent and what you see is what you get and then

1312
01:00:25,769 --> 01:00:27,199
within that commercial is

1313
01:00:27,199 --> 01:00:30,420
the the one rate category where there is some subsidization

1314
01:00:30,420 --> 01:00:31,340
within the rate

1315
01:00:31,340 --> 01:00:35,380
class meaning a small container may not be fully recovering

1316
01:00:35,380 --> 01:00:36,159
its cost a large

1317
01:00:36,159 --> 01:00:38,989
container may be slightly over recovering and we want to

1318
01:00:38,989 --> 01:00:39,519
try to balance

1319
01:00:39,519 --> 01:00:44,269
that out if we can short term and this may answer the

1320
01:00:44,269 --> 01:00:45,000
question that came up

1321
01:00:45,000 --> 01:00:48,070
earlier is you know why are we drawing down and having an

1322
01:00:48,070 --> 01:00:49,159
under recovery as a

1323
01:00:49,159 --> 01:00:52,469
fund we do have some excess reserves that's kind of how we

1324
01:00:52,469 --> 01:00:53,139
address the

1325
01:00:53,139 --> 01:00:56,340
residential rate reduction we're still taking a look at

1326
01:00:56,340 --> 01:00:57,599
this but we feel like

1327
01:00:57,599 --> 01:00:59,559
we may be able to do the same thing for some of the

1328
01:00:59,559 --> 01:01:00,800
commercial rates that are

1329
01:01:00,800 --> 01:01:04,539
over recovering if that's possible we'll bring that forward

1330
01:01:04,539 --> 01:01:04,659
as a

1331
01:01:04,659 --> 01:01:07,730
recommendation and utilize those reserves to to reduce

1332
01:01:07,730 --> 01:01:08,239
those over

1333
01:01:08,239 --> 01:01:11,440
recovering rates from a long-term standpoint we want to

1334
01:01:11,440 --> 01:01:12,079
slowly adjust

1335
01:01:12,079 --> 01:01:15,320
those to toward cost recovery again we don't want to have

1336
01:01:15,320 --> 01:01:16,559
big spikes one way or

1337
01:01:16,559 --> 01:01:20,309
the other from a landfill standpoint I think Dave summed

1338
01:01:20,309 --> 01:01:21,960
this up very well we

1339
01:01:21,960 --> 01:01:24,500
want to make sure that we're recovering our costs

1340
01:01:24,500 --> 01:01:25,800
addressing the subsidization

1341
01:01:25,800 --> 01:01:29,849
while remaining competitive in the market so that is making

1342
01:01:29,849 --> 01:01:30,960
sure that we adjust

1343
01:01:30,960 --> 01:01:33,239
toward the market establish those put or pay agreements

1344
01:01:33,239 --> 01:01:34,159
with some of our bigger

1345
01:01:34,159 --> 01:01:37,230
haulers and then also see direction on some of the subsid

1346
01:01:37,230 --> 01:01:38,159
ized programs and

1347
01:01:38,159 --> 01:01:42,309
operations like we talked about with PUB and council the

1348
01:01:42,309 --> 01:01:43,400
building materials

1349
01:01:43,400 --> 01:01:46,969
recovery and rubble processing on Dave's slide earlier it's

1350
01:01:46,969 --> 01:01:47,800
about a two million

1351
01:01:47,800 --> 01:01:51,460
dollar under recovery per year that's something that we

1352
01:01:51,460 --> 01:01:53,199
feel like it we we

1353
01:01:53,199 --> 01:01:56,260
certainly want to take the utilities board in the council's

1354
01:01:56,260 --> 01:01:56,679
direction but that

1355
01:01:56,679 --> 01:01:59,739
is something that that gets picked up by residential and

1356
01:01:59,739 --> 01:02:00,599
commercial rates if it's

1357
01:02:00,599 --> 01:02:06,840
not performing as well as it should so is that that those

1358
01:02:06,840 --> 01:02:08,260
operations are they

1359
01:02:08,260 --> 01:02:13,719
included in the 2019 proposed budget they will be and that

1360
01:02:13,719 --> 01:02:14,219
's that's a good

1361
01:02:14,219 --> 01:02:16,679
segue to the next slide our proposed budget is going to be

1362
01:02:16,679 --> 01:02:17,320
coming back to you

1363
01:02:17,320 --> 01:02:20,809
in July the 23rd we met with the council I believe it was

1364
01:02:20,809 --> 01:02:21,800
last week or the week

1365
01:02:21,800 --> 01:02:24,860
before last and essentially the direction we got from the

1366
01:02:24,860 --> 01:02:25,280
council was to

1367
01:02:25,280 --> 01:02:28,530
place a temporary hold on both rebel processing as well as

1368
01:02:28,530 --> 01:02:29,360
the building

1369
01:02:29,360 --> 01:02:32,849
materials recovery that certainly kind of helps us stop the

1370
01:02:32,849 --> 01:02:33,760
bleeding but it

1371
01:02:33,760 --> 01:02:36,829
doesn't necessarily reduce ongoing cost and so that's

1372
01:02:36,829 --> 01:02:37,840
something that we'll

1373
01:02:37,840 --> 01:02:40,900
definitely kind of point out as we go through our budget

1374
01:02:40,900 --> 01:02:41,760
process with you all

1375
01:02:41,760 --> 01:02:45,389
so in terms of next steps we do still have some rate design

1376
01:02:45,389 --> 01:02:46,639
work to complete

1377
01:02:46,639 --> 01:02:49,699
as well as the final market study in terms of the rate

1378
01:02:49,699 --> 01:02:50,599
correction strategy

1379
01:02:50,599 --> 01:02:52,630
that I just laid out we do want to partner with Nugent on

1380
01:02:52,630 --> 01:02:53,280
that and try to

1381
01:02:53,280 --> 01:02:56,440
work through that plan over the next two to three months

1382
01:02:56,440 --> 01:02:57,519
and then once that's

1383
01:02:57,519 --> 01:03:00,260
that's crafted we'll come back to the the board and the

1384
01:03:00,260 --> 01:03:01,199
council and seek

1385
01:03:01,199 --> 01:03:04,550
direction on is that the strategy that we want to go we'll

1386
01:03:04,550 --> 01:03:05,599
talk about timelines

1387
01:03:05,599 --> 01:03:07,880
you know impact one way or the other and make sure that

1388
01:03:07,880 --> 01:03:09,159
everyone's comfortable

1389
01:03:09,159 --> 01:03:12,320
with the direction we're headed council received this

1390
01:03:12,320 --> 01:03:13,960
presentation on July 17th

1391
01:03:13,960 --> 01:03:16,789
and then they'll also receive the department budget after

1392
01:03:16,789 --> 01:03:17,320
the pub on

1393
01:03:17,320 --> 01:03:21,480
August the 4th with that I'm happy to stand for any

1394
01:03:21,480 --> 01:03:22,159
questions that you have

1395
01:03:22,159 --> 01:03:25,599
for from your Nugent

1396
01:03:27,719 --> 01:03:32,079
questions looking forward to the see what the budget is

1397
01:03:32,079 --> 01:03:34,199
gonna look like sir

1398
01:03:34,199 --> 01:03:37,719
thank you

1399
01:03:44,000 --> 01:03:48,320
okay that's the end of the work session our regular meeting

1400
01:03:48,320 --> 01:03:51,199
we have consent

1401
01:03:51,199 --> 01:03:59,309
agenda items ABC D&E and it's been recommended actually it

1402
01:03:59,309 --> 01:04:01,360
's we're gonna

1403
01:04:01,360 --> 01:04:01,360
need to pull item number a off consent we're still looking

1404
01:04:01,360 --> 01:04:09,559
at some details on

1405
01:04:09,559 --> 01:04:15,469
that agreement I understand so we're pulling item a so I'd

1406
01:04:15,469 --> 01:04:16,800
ask at this time

1407
01:04:16,800 --> 01:04:22,739
if there's any other items that any individual member would

1408
01:04:22,739 --> 01:04:24,039
like to pull for

1409
01:04:24,039 --> 01:04:34,519
individual consideration okay good any other items BCD or E

1410
01:04:34,519 --> 01:04:38,280
on consent okay

1411
01:04:38,280 --> 01:04:44,650
hearing none then is there a motion on items B C D&E on the

1412
01:04:44,650 --> 01:04:45,679
consent agenda I

1413
01:04:45,679 --> 01:04:49,800
move approval second I have a motion and a second to

1414
01:04:49,800 --> 01:04:54,400
approve those items in your

1415
01:04:54,400 --> 01:05:01,750
discussion all in favor say aye aye any opposed okay those

1416
01:05:01,750 --> 01:05:02,840
items are approved as

1417
01:05:02,840 --> 01:05:08,920
presented for items for individual consideration we have

1418
01:05:08,920 --> 01:05:09,840
item a which is

1419
01:05:09,840 --> 01:05:12,119
considered approval of the public utilities board meeting

1420
01:05:12,119 --> 01:05:13,400
minutes of June

1421
01:05:13,400 --> 01:05:22,960
25th 2018 any questions changes on those minutes is there a

1422
01:05:22,960 --> 01:05:27,079
motion on item a then

1423
01:05:27,480 --> 01:05:34,829
I'll move approval take it have a motion motion and a

1424
01:05:34,829 --> 01:05:38,000
second discussion all in

1425
01:05:38,000 --> 01:05:43,719
favor say aye any opposed not a maze approved item number B

1426
01:05:43,719 --> 01:05:45,280
or item B is to

1427
01:05:45,280 --> 01:05:48,349
consider recommending approval of the municipal electric

1428
01:05:48,349 --> 01:05:50,360
fiscal year 2018 19

1429
01:05:50,360 --> 01:05:53,719
operating in capital budget

1430
01:05:58,280 --> 01:06:03,590
Mr. Chairman and members of the PAB Tony point the director

1431
01:06:03,590 --> 01:06:06,960
of finance have just

1432
01:06:06,960 --> 01:06:12,349
a very very quickly going to go over our financial forecast

1433
01:06:12,349 --> 01:06:14,039
and and the budget

1434
01:06:14,039 --> 01:06:18,090
for you for the municipal electric I will tell you that

1435
01:06:18,090 --> 01:06:19,320
there has been no

1436
01:06:19,320 --> 01:06:22,039
changes well there's been a couple minor changes that I'll

1437
01:06:22,039 --> 01:06:23,079
walk through for you

1438
01:06:23,079 --> 01:06:27,130
but no no real material changes from what you previously

1439
01:06:27,130 --> 01:06:28,719
saw the council also

1440
01:06:28,719 --> 01:06:32,210
has reviewed this and has also recommended approval so

1441
01:06:32,210 --> 01:06:33,000
today we're

1442
01:06:33,000 --> 01:06:36,489
seeking your formal approval on this particular budget and

1443
01:06:36,489 --> 01:06:37,239
then we'll be

1444
01:06:37,239 --> 01:06:41,289
presenting that to the council as part of their citywide

1445
01:06:41,289 --> 01:06:42,519
budget discussion on

1446
01:06:42,519 --> 01:06:46,969
August 2nd so just really quickly want to go through just

1447
01:06:46,969 --> 01:06:48,519
the the financial

1448
01:06:48,519 --> 01:06:52,980
assumptions that you've previously seen the first is this

1449
01:06:52,980 --> 01:06:54,519
this forecast this

1450
01:06:54,519 --> 01:06:58,039
budget assumes the payoff of twenty eight point six million

1451
01:06:58,039 --> 01:06:58,960
dollars of the

1452
01:06:58,960 --> 01:07:03,119
2010 TMP a related you know scrubber debt the plan would be

1453
01:07:03,119 --> 01:07:04,599
to come back to the PAB

1454
01:07:04,599 --> 01:07:08,739
in November December time frame and and then to the council

1455
01:07:08,739 --> 01:07:09,719
with a with an

1456
01:07:09,719 --> 01:07:13,500
ordinance to call this debt and pay it off we would be

1457
01:07:13,500 --> 01:07:15,159
doing that sending a

1458
01:07:15,159 --> 01:07:20,039
wire on February 15th and and extinguishing that that debt

1459
01:07:20,039 --> 01:07:20,639
no base

1460
01:07:20,639 --> 01:07:24,760
rate changes George went through the rates for you earlier

1461
01:07:24,760 --> 01:07:25,280
talked to you a

1462
01:07:25,280 --> 01:07:30,639
little bit about the TCR TCRF suspension that will result

1463
01:07:30,639 --> 01:07:32,360
in decreases to both

1464
01:07:32,360 --> 01:07:35,880
our residential and our commercial customers as well you

1465
01:07:35,880 --> 01:07:36,840
know I'm not

1466
01:07:36,840 --> 01:07:39,320
going to repeat everything George said again but uh but he

1467
01:07:39,320 --> 01:07:41,079
's covered that again

1468
01:07:41,079 --> 01:07:45,530
the ECA will be maintained at the current rate we've

1469
01:07:45,530 --> 01:07:47,159
proposed to in the

1470
01:07:47,159 --> 01:07:51,400
ECA ordinance to reflect the debt cost certainly reduced

1471
01:07:51,400 --> 01:07:52,360
purchase power costs

1472
01:07:52,360 --> 01:07:56,409
are part of this there's substantial reduction in the

1473
01:07:56,409 --> 01:07:57,239
capital improvement

1474
01:07:57,239 --> 01:08:00,949
program we there's been no changes since we previously

1475
01:08:00,949 --> 01:08:02,320
discussed that with you

1476
01:08:02,320 --> 01:08:09,719
and then of course the there's a move to cash fund a larger

1477
01:08:09,719 --> 01:08:11,719
portion of the of the

1478
01:08:11,719 --> 01:08:16,159
transmission and distribution that CIP program going

1479
01:08:16,159 --> 01:08:18,119
forward I did want to show

1480
01:08:18,119 --> 01:08:22,420
you just really quickly here the forecast we have made some

1481
01:08:22,420 --> 01:08:23,380
formatting

1482
01:08:23,380 --> 01:08:26,449
changes I think that you know without discussion with the

1483
01:08:26,449 --> 01:08:27,039
council kind of help

1484
01:08:27,039 --> 01:08:30,720
clarify things a little bit so I wanted to point out that

1485
01:08:30,720 --> 01:08:31,840
we have first of all

1486
01:08:31,840 --> 01:08:36,279
separated out our deck revenues that were previously part

1487
01:08:36,279 --> 01:08:37,600
of the base rates

1488
01:08:37,600 --> 01:08:39,569
and so we've separated that out to make that a little bit

1489
01:08:39,569 --> 01:08:40,399
more transparent and

1490
01:08:40,399 --> 01:08:44,550
clear additionally we've broken out the debt cost from the

1491
01:08:44,550 --> 01:08:45,479
purchase power which

1492
01:08:45,479 --> 01:08:48,819
is combined to again to just make that a little more

1493
01:08:48,819 --> 01:08:50,279
transparent that was a

1494
01:08:50,279 --> 01:08:53,850
request that the council had other than that there really

1495
01:08:53,850 --> 01:08:55,800
is no changes other

1496
01:08:55,800 --> 01:08:59,979
than a couple of minor items that I'd like to point out to

1497
01:08:59,979 --> 01:09:00,319
you

1498
01:09:01,840 --> 01:09:12,819
of course there was as George as a we discussed earlier

1499
01:09:12,819 --> 01:09:13,479
with you on the

1500
01:09:13,479 --> 01:09:16,130
miscellaneous reconnect fees those have been reduced that's

1501
01:09:16,130 --> 01:09:16,880
approximately about

1502
01:09:16,880 --> 01:09:21,350
two hundred thousand dollars of reduced revenue to DME but

1503
01:09:21,350 --> 01:09:23,600
again it aligns that

1504
01:09:23,600 --> 01:09:26,670
particular fee with what the true cost of service is for

1505
01:09:26,670 --> 01:09:27,600
reconnecting those

1506
01:09:27,600 --> 01:09:33,189
meters we've also included the deck related insurance that

1507
01:09:33,189 --> 01:09:34,079
was previously

1508
01:09:34,079 --> 01:09:36,359
not part of this budget but a little bit over two hundred

1509
01:09:36,359 --> 01:09:37,399
thousand dollars that's

1510
01:09:37,399 --> 01:09:41,960
included in the 17 18 estimate and going forward those are

1511
01:09:41,960 --> 01:09:42,760
really the only

1512
01:09:42,760 --> 01:09:47,270
changes that we've made to date be happy to answer any

1513
01:09:47,270 --> 01:09:48,840
questions that you may have

1514
01:09:48,840 --> 01:09:53,600
but we are seeking your formal recommendation today to

1515
01:09:53,600 --> 01:09:54,920
proceed with

1516
01:09:54,920 --> 01:09:57,989
this budget or any changes you may have so that we can

1517
01:09:57,989 --> 01:09:59,279
proceed to the council on

1518
01:09:59,279 --> 01:10:07,359
August 2nd I wanted to ask a question about the do we

1519
01:10:07,359 --> 01:10:09,720
evaluate the energy

1520
01:10:09,720 --> 01:10:14,779
cost this judgment annual annually or quarterly that is

1521
01:10:14,779 --> 01:10:16,359
quarterly yes and do

1522
01:10:16,359 --> 01:10:20,090
we have the ability to pass that adjustment on to our

1523
01:10:20,090 --> 01:10:21,159
customers through

1524
01:10:21,159 --> 01:10:24,399
there just it throughout the year that's correct okay and

1525
01:10:24,399 --> 01:10:25,880
so will you come back to

1526
01:10:25,880 --> 01:10:28,409
us if those change and we're gonna pass them on or we're

1527
01:10:28,409 --> 01:10:29,479
just gonna do it on the

1528
01:10:29,479 --> 01:10:32,689
floor no we will come back and seek your recommendation and

1529
01:10:32,689 --> 01:10:33,199
also go to the

1530
01:10:33,199 --> 01:10:37,449
council okay all right thank you I just want to make it

1531
01:10:37,449 --> 01:10:38,640
come I like the breakout

1532
01:10:38,640 --> 01:10:42,689
too it's a lot more transparent we can really see what's

1533
01:10:42,689 --> 01:10:44,119
going on and I won't

1534
01:10:44,119 --> 01:10:46,670
go through this but we've done a similar thing on the other

1535
01:10:46,670 --> 01:10:47,640
debt information that

1536
01:10:47,640 --> 01:10:51,710
we've provided to you and we'll provide to the council as

1537
01:10:51,710 --> 01:10:53,439
well so okay any

1538
01:10:53,439 --> 01:10:58,170
questions I know we've seen this before but this is as you

1539
01:10:58,170 --> 01:10:59,520
say I like the way

1540
01:10:59,520 --> 01:11:09,229
the categories are broken out any other questions on these

1541
01:11:09,229 --> 01:11:11,119
no okay thank you

1542
01:11:11,119 --> 01:11:18,520
thank you Tony do we have a motion then on item B

1543
01:11:25,319 --> 01:11:30,000
we have a motion and a second any discussion all in favor

1544
01:11:30,000 --> 01:11:31,640
say aye aye any

1545
01:11:31,640 --> 01:11:37,000
opposed same sign okay item C is to consider recommending

1546
01:11:37,000 --> 01:11:37,600
adoption of an

1547
01:11:37,600 --> 01:11:40,909
ordinance of the city of Denton Texas authorizing the city

1548
01:11:40,909 --> 01:11:41,819
manager or his

1549
01:11:41,819 --> 01:11:45,869
designee to execute an advanced funding agreement in a form

1550
01:11:45,869 --> 01:11:46,119
substantially

1551
01:11:46,119 --> 01:11:49,750
similar as attached here to his exhibit to in the

1552
01:11:49,750 --> 01:11:51,800
approximate amount of three

1553
01:11:51,800 --> 01:11:55,850
million two hundred eleven thousand seven hundred twenty

1554
01:11:55,850 --> 01:11:57,159
dollars which is to

1555
01:11:57,159 --> 01:12:01,289
be finalized after bids are open by in between the state of

1556
01:12:01,289 --> 01:12:02,239
Texas acting

1557
01:12:02,239 --> 01:12:05,300
through the Texas Department of Transportation in the city

1558
01:12:05,300 --> 01:12:05,720
of Denton

1559
01:12:05,720 --> 01:12:10,000
regarding water and wastewater improvements associated with

1560
01:12:10,000 --> 01:12:11,560
the US 77

1561
01:12:11,560 --> 01:12:15,659
which is for work drive roadway widening project located

1562
01:12:15,659 --> 01:12:16,880
between interstate

1563
01:12:16,880 --> 01:12:21,880
highway 35 e to the south of farm-to-market 1830 within the

1564
01:12:21,880 --> 01:12:22,319
city of

1565
01:12:22,319 --> 01:12:28,779
Denton that's correct thank you yes good morning members of

1566
01:12:28,779 --> 01:12:29,479
the pub I'm Chad

1567
01:12:29,479 --> 01:12:31,729
Allen deputy city engineer and yes I'm going to talk about

1568
01:12:31,729 --> 01:12:32,600
the Fort Worth Drive

1569
01:12:32,600 --> 01:12:36,680
project we're relocating our utilities as part of that

1570
01:12:36,680 --> 01:12:37,600
projects and it's also

1571
01:12:37,600 --> 01:12:41,449
associated with the text on US 377 project and specifically

1572
01:12:41,449 --> 01:12:42,199
I want to talk

1573
01:12:42,199 --> 01:12:45,300
about an advanced funding agreement that's required for us

1574
01:12:45,300 --> 01:12:46,180
to execute with

1575
01:12:46,180 --> 01:12:49,670
text on it so that we can pay to remove our utilities from

1576
01:12:49,670 --> 01:12:50,319
the text out right

1577
01:12:50,319 --> 01:12:56,090
away so this map shows the scope of the text out project

1578
01:12:56,090 --> 01:12:57,000
text out is going to

1579
01:12:57,000 --> 01:13:01,050
widen for worth drive to be a six-lane facility with a

1580
01:13:01,050 --> 01:13:02,640
raised median they're

1581
01:13:02,640 --> 01:13:05,159
going to construct various turn lanes and the limits of the

1582
01:13:05,159 --> 01:13:05,960
project start on

1583
01:13:05,960 --> 01:13:09,539
the north end from I 35 East and they end south of Country

1584
01:13:09,539 --> 01:13:11,159
Club Road or FM 1830

1585
01:13:11,159 --> 01:13:14,220
so they're going to widen that to six lanes install a

1586
01:13:14,220 --> 01:13:15,159
median they're going to

1587
01:13:15,159 --> 01:13:17,609
construct traffic similar improvements at various

1588
01:13:17,609 --> 01:13:19,159
intersections they're going to

1589
01:13:19,159 --> 01:13:22,229
install an underground storm drain system and remove the

1590
01:13:22,229 --> 01:13:23,079
roadside ditches

1591
01:13:23,079 --> 01:13:25,520
and then they're going to build sidewalks on both sides of

1592
01:13:25,520 --> 01:13:26,720
the roads road

1593
01:13:26,720 --> 01:13:30,210
throughout the project limits so before they do that we're

1594
01:13:30,210 --> 01:13:31,199
required to move our

1595
01:13:31,199 --> 01:13:33,880
utilities outside of the text out right away text out does

1596
01:13:33,880 --> 01:13:34,720
not allow public

1597
01:13:34,720 --> 01:13:37,869
utilities to be located under new pavement for their

1598
01:13:37,869 --> 01:13:39,079
projects so we have

1599
01:13:39,079 --> 01:13:42,149
to move all of our utilities outside of the right away so

1600
01:13:42,149 --> 01:13:43,239
for the last couple of

1601
01:13:43,239 --> 01:13:46,500
years we've hired a consulting firm and we've designed our

1602
01:13:46,500 --> 01:13:47,560
utility relocations

1603
01:13:47,560 --> 01:13:51,560
and we've also our real estate group has obtained easements

1604
01:13:51,560 --> 01:13:52,319
to put the new

1605
01:13:52,319 --> 01:13:55,390
utilities in outside the right of way and then we've gotten

1606
01:13:55,390 --> 01:13:55,880
temporary

1607
01:13:55,880 --> 01:13:58,159
construction easements so we can actually build the utility

1608
01:13:58,159 --> 01:13:58,800
improvements

1609
01:13:58,800 --> 01:14:01,170
so we're moving them all outside the right of way in

1610
01:14:01,170 --> 01:14:02,199
certain areas we're

1611
01:14:02,199 --> 01:14:05,260
constructing new crossings across the right of way and then

1612
01:14:05,260 --> 01:14:05,840
sometimes we have

1613
01:14:05,840 --> 01:14:10,600
to adjust our utilities to avoid the text out improvements

1614
01:14:10,600 --> 01:14:11,800
our consultant has

1615
01:14:11,800 --> 01:14:13,689
designed final plans and what we've done is we put our

1616
01:14:13,689 --> 01:14:15,520
construction plans in into

1617
01:14:15,520 --> 01:14:18,810
the text out plans so text out is bidding the project all

1618
01:14:18,810 --> 01:14:19,600
is one project

1619
01:14:19,600 --> 01:14:22,270
the roadway project and the utility project has been

1620
01:14:22,270 --> 01:14:23,439
combined so they're

1621
01:14:23,439 --> 01:14:27,159
about to bid that job tomorrow unfortunately they won't pay

1622
01:14:27,159 --> 01:14:27,439
for the

1623
01:14:27,439 --> 01:14:30,500
utility improvements we have to pay for those and so we

1624
01:14:30,500 --> 01:14:31,439
have to enter into an

1625
01:14:31,439 --> 01:14:34,510
advanced funding agreement with text dot and that agreement

1626
01:14:34,510 --> 01:14:35,279
sets out the terms

1627
01:14:35,279 --> 01:14:37,970
and conditions of the payment and the agreement that you

1628
01:14:37,970 --> 01:14:38,920
have in your backup

1629
01:14:38,920 --> 01:14:42,100
right now is just draft the numbers that are in that

1630
01:14:42,100 --> 01:14:43,359
agreement are based on

1631
01:14:43,359 --> 01:14:46,430
construction cost estimates and they're approximate

1632
01:14:46,430 --> 01:14:48,119
tomorrow text out opens bids

1633
01:14:48,119 --> 01:14:50,270
and we'll have the final numbers but we didn't have those

1634
01:14:50,270 --> 01:14:51,159
before bringing it to

1635
01:14:51,159 --> 01:14:56,039
pub today so right now the approximate cost based on cost

1636
01:14:56,039 --> 01:14:57,199
estimates from our

1637
01:14:57,199 --> 01:14:59,779
consultant for the utility improvements is approximately

1638
01:14:59,779 --> 01:15:01,439
three point two million

1639
01:15:01,439 --> 01:15:06,399
dollars so text out is opening bids tomorrow and at that

1640
01:15:06,399 --> 01:15:07,079
time we'll know the

1641
01:15:07,079 --> 01:15:09,729
final numbers for the utility improvements we'll take the

1642
01:15:09,729 --> 01:15:10,279
advanced

1643
01:15:10,279 --> 01:15:13,119
funding agreement and update it with those numbers and that

1644
01:15:13,119 --> 01:15:13,920
's the amount of

1645
01:15:13,920 --> 01:15:17,409
money we expect to have to pay for for our utilities to be

1646
01:15:17,409 --> 01:15:18,560
relocated as part of

1647
01:15:18,560 --> 01:15:21,159
the project the only way that would increase is if we

1648
01:15:21,159 --> 01:15:22,399
request change orders

1649
01:15:22,399 --> 01:15:25,130
during construction or if we request additional work and

1650
01:15:25,130 --> 01:15:26,039
then we would have

1651
01:15:26,039 --> 01:15:29,109
to pay for that additional work so we'll have the final

1652
01:15:29,109 --> 01:15:30,520
numbers tomorrow we'll

1653
01:15:30,520 --> 01:15:32,970
update the AFA and then we'll take it we're planning to

1654
01:15:32,970 --> 01:15:33,680
take it to City

1655
01:15:33,680 --> 01:15:38,760
Council on July 17th so what we're asking you to do today

1656
01:15:38,760 --> 01:15:39,720
is recommend

1657
01:15:39,720 --> 01:15:42,800
adoption of an ordinance for the city to execute the AFA

1658
01:15:42,800 --> 01:15:44,000
between the city and

1659
01:15:44,000 --> 01:15:47,069
text dot and the approximate amount of 3.2 million the

1660
01:15:47,069 --> 01:15:47,720
final amount will be

1661
01:15:47,720 --> 01:15:50,390
determined tomorrow so that we can relocate our utilities

1662
01:15:50,390 --> 01:15:51,039
as part of the

1663
01:15:51,039 --> 01:15:56,800
Fort Worth Drive US 377 project and then if you have any

1664
01:15:56,800 --> 01:15:57,560
questions I'll try to

1665
01:15:57,560 --> 01:16:05,640
answer them just question and I did have a question on how

1666
01:16:05,640 --> 01:16:06,880
on how increases are

1667
01:16:06,880 --> 01:16:13,039
addressed these have to be requested by us yes for us to

1668
01:16:13,039 --> 01:16:14,359
have any and I guess

1669
01:16:14,359 --> 01:16:18,520
you know when you start replacing utilities who knows what

1670
01:16:18,520 --> 01:16:19,000
you're gonna

1671
01:16:19,000 --> 01:16:21,779
find that's exactly right so something could happen during

1672
01:16:21,779 --> 01:16:22,319
the construction

1673
01:16:22,319 --> 01:16:25,039
project that caused us to request additional work to be

1674
01:16:25,039 --> 01:16:25,920
okay and we would

1675
01:16:25,920 --> 01:16:35,479
have to pay for that yes I guess the only other question

1676
01:16:35,479 --> 01:16:36,720
the ground pardon you

1677
01:16:36,720 --> 01:16:39,890
never know what's well that's true the only other question

1678
01:16:39,890 --> 01:16:40,680
is when the bids

1679
01:16:40,680 --> 01:16:45,399
come in tomorrow I guess if it's you probably need to react

1680
01:16:45,399 --> 01:16:46,680
to that before

1681
01:16:46,680 --> 01:16:51,119
the next time we meet I would imagine if it's in

1682
01:16:51,119 --> 01:16:53,439
significantly more than what we

1683
01:16:53,439 --> 01:16:58,399
estimate now okay you know what what do we do well I guess

1684
01:16:58,399 --> 01:16:59,159
it goes to council

1685
01:16:59,159 --> 01:17:01,920
yes it goes to council with those final numbers with silent

1686
01:17:01,920 --> 01:17:03,800
on the 17th okay so

1687
01:17:03,800 --> 01:17:06,449
usually textile lacks for municipalities to take

1688
01:17:06,449 --> 01:17:07,800
approximate numbers to council

1689
01:17:07,800 --> 01:17:10,050
we try not to do that we want to take the final numbers to

1690
01:17:10,050 --> 01:17:10,840
council right so

1691
01:17:10,840 --> 01:17:13,310
this is the process we have to go through textile is sort

1692
01:17:13,310 --> 01:17:14,079
of giving us an

1693
01:17:14,079 --> 01:17:17,140
exception to do that way to do it that way so what they

1694
01:17:17,140 --> 01:17:17,840
expect for us is to

1695
01:17:17,840 --> 01:17:21,329
send them a check immediately after the council meeting so

1696
01:17:21,329 --> 01:17:22,439
that's the process

1697
01:17:22,439 --> 01:17:25,760
we're trying to go through right now okay do you know what

1698
01:17:25,760 --> 01:17:26,279
size your

1699
01:17:26,279 --> 01:17:31,659
contingency was I believe it was five percent we'll come

1700
01:17:31,659 --> 01:17:33,199
back and update the

1701
01:17:33,199 --> 01:17:36,949
PBA don't we get the file just to bring that back to you so

1702
01:17:36,949 --> 01:17:38,199
you'll have the

1703
01:17:38,199 --> 01:17:41,689
recommendation we need to look at is based upon the

1704
01:17:41,689 --> 01:17:44,000
preliminary numbers and

1705
01:17:44,000 --> 01:17:48,159
the concept of an advanced funding agreement it's really

1706
01:17:48,159 --> 01:17:48,640
what we're talking

1707
01:17:48,640 --> 01:17:55,800
about exactly okay any other questions

1708
01:17:57,399 --> 01:18:02,319
no is there a motion then on item C so moved to approve

1709
01:18:02,319 --> 01:18:04,119
most to approve their

1710
01:18:04,119 --> 01:18:10,159
second second Charlie any discussion all in favor say aye

1711
01:18:10,159 --> 01:18:14,479
any opposed when does

1712
01:18:14,479 --> 01:18:17,539
construction start I'm just curious they're hoping to start

1713
01:18:17,539 --> 01:18:17,920
construction in

1714
01:18:17,920 --> 01:18:25,270
October okay so yes pretty quickly yeah well that's it's a

1715
01:18:25,270 --> 01:18:27,600
long time coming yeah

1716
01:18:27,600 --> 01:18:32,899
it's been talked about for a long time it has okay thank

1717
01:18:32,899 --> 01:18:35,920
you okay thank you Chad

1718
01:18:35,920 --> 01:18:41,439
item D is ACM update mr. chairman members of the board

1719
01:18:41,439 --> 01:18:44,039
nothing to report

1720
01:18:46,119 --> 01:18:53,470
okay concluding items under section five five one dot o

1721
01:18:53,470 --> 01:18:55,239
four two the Texas Open

1722
01:18:55,239 --> 01:18:59,520
Meetings Act is to respond to inquiries from the public

1723
01:18:59,520 --> 01:19:00,720
utilities board or the

1724
01:19:00,720 --> 01:19:04,770
public was specific factual information or recitation of

1725
01:19:04,770 --> 01:19:06,199
policy or accept a

1726
01:19:06,199 --> 01:19:09,880
proposal to place the matter on the agenda for an upcoming

1727
01:19:09,880 --> 01:19:14,199
meeting anything

1728
01:19:14,199 --> 01:19:20,720
to add to upcoming meetings or our matrix from anybody no

1729
01:19:20,720 --> 01:19:23,920
hearing none is

1730
01:19:23,920 --> 01:19:30,600
there a motion to adjourn motion to adjourn and a second

1731
01:19:30,600 --> 01:19:31,600
second all in

1732
01:19:31,600 --> 01:19:36,560
favor say aye thank you