1 00:00:00,000 --> 00:00:04,259 23rd 2018 public utility board meeting to order 2 00:00:05,440 --> 00:00:07,820 First on our agenda is a work session 3 00:00:08,599 --> 00:00:12,199 To receive report and hold a discussion regarding the solid 4 00:00:12,199 --> 00:00:13,500 waste fiscal year 5 00:00:14,320 --> 00:00:16,839 2018-19 operating and capital budget 6 00:00:17,600 --> 00:00:21,199 Good afternoon board members. Mr. Chairman. My name is Nick 7 00:00:21,199 --> 00:00:23,280 Vincent utility business manager for the city of Denton 8 00:00:23,600 --> 00:00:26,480 I have a two-part presentation for you today the first part 9 00:00:26,480 --> 00:00:27,359 of the presentation 10 00:00:27,359 --> 00:00:30,960 I will be presenting the proposed 18 19 solid waste 11 00:00:30,960 --> 00:00:31,780 operating budget 12 00:00:31,780 --> 00:00:34,039 But then the second part of the presentation Ethan Cox 13 00:00:34,039 --> 00:00:36,689 directors always will come up and give his departmental 14 00:00:36,689 --> 00:00:37,119 presentation 15 00:00:37,759 --> 00:00:39,689 Please feel free to stop me if you have any questions 16 00:00:39,689 --> 00:00:40,539 throughout the presentation 17 00:00:40,539 --> 00:00:42,950 I'll be happy to answer them. If not, I will have staff 18 00:00:42,950 --> 00:00:44,880 come up here and help me out answer the question 19 00:00:46,000 --> 00:00:49,359 The cost of service study was presented to pub on July 9th 20 00:00:50,119 --> 00:00:53,719 This study did indicate several service categories and 21 00:00:53,719 --> 00:00:55,399 rates that were over and under recovering 22 00:00:55,960 --> 00:00:58,079 Staff will continue to work with new gen 23 00:00:59,100 --> 00:01:02,179 To work towards a rate correction strategy. Once that's 24 00:01:02,179 --> 00:01:04,140 completed. We will bring that forward to the pub 25 00:01:05,079 --> 00:01:08,680 The operational review is also presented to the pub on June 26 00:01:08,680 --> 00:01:09,079 25th 27 00:01:09,760 --> 00:01:11,680 the operational review 28 00:01:11,680 --> 00:01:15,079 We did receive recommendation from the pub to discontinue 29 00:01:15,719 --> 00:01:18,769 Operation of the building materials recovery and bubble 30 00:01:18,769 --> 00:01:22,560 processing operations following that meeting on June 26 31 00:01:22,560 --> 00:01:23,439 City Council 32 00:01:23,920 --> 00:01:26,750 Did give staff direction to put a temporary hold on those 33 00:01:26,750 --> 00:01:29,790 operations until the operational review can go to the 34 00:01:29,790 --> 00:01:31,000 community on environment 35 00:01:32,359 --> 00:01:34,159 Staff will be working in next month or two to take it to 36 00:01:34,159 --> 00:01:35,120 the committee 37 00:01:35,959 --> 00:01:40,030 Once formal recommendation is received from them the PB and 38 00:01:40,030 --> 00:01:42,200 council will come back to you. Of course 39 00:01:42,599 --> 00:01:45,780 We are presenting the budget today as a placeholder budget 40 00:01:46,120 --> 00:01:49,519 We will be coming back by February 1st of 2019 41 00:01:49,680 --> 00:01:52,459 With a modified budget based on recommendations from the 42 00:01:52,459 --> 00:01:54,159 committee the pub and the council 43 00:01:55,159 --> 00:01:57,159 regarding the operational review 44 00:01:58,560 --> 00:02:01,760 The fund does maintain a debt coverage ratio greater than 1 45 00:02:01,760 --> 00:02:05,359 .25 the target in the current proposed budget as it is today 46 00:02:05,560 --> 00:02:09,000 In each of the future years and the fund balance does 47 00:02:09,599 --> 00:02:12,569 maintain a fund balance above the targets of 14 and 18 48 00:02:12,569 --> 00:02:13,240 percent and 49 00:02:13,479 --> 00:02:15,889 Then staff has used a multi-year financial planning to 50 00:02:15,889 --> 00:02:18,389 minimize rate increases and I'd like to point out this 51 00:02:18,389 --> 00:02:19,879 budget actually does not have any 52 00:02:19,879 --> 00:02:22,530 Rate increases for residential commercial customers. Oh, 53 00:02:22,530 --> 00:02:23,400 excuse me 54 00:02:24,199 --> 00:02:26,939 Let me actually flip forward. Sorry about that. Let me 55 00:02:26,939 --> 00:02:29,560 actually recover this really quick since I forgot 56 00:02:30,400 --> 00:02:34,000 Presents a slide here. So the cost of service was in July 9 57 00:02:34,000 --> 00:02:35,800 th to the pub. You can see that here 58 00:02:36,479 --> 00:02:40,080 It did identify some service categories and rates that were 59 00:02:40,080 --> 00:02:41,400 under and over recovering 60 00:02:41,599 --> 00:02:45,629 the operational review was presented to PB on June 25th as 61 00:02:45,629 --> 00:02:47,840 I stated the PB gave direction to 62 00:02:48,680 --> 00:02:50,990 discontinue the BMR operation to building materials 63 00:02:50,990 --> 00:02:51,599 recovery 64 00:02:52,360 --> 00:02:55,960 And the rubble process in operation City Council actually 65 00:02:55,960 --> 00:02:58,080 directed staff to put a temporary hold on those operations 66 00:02:58,280 --> 00:03:00,360 Until we can take the operational review to the committee 67 00:03:00,360 --> 00:03:01,000 on environment 68 00:03:01,520 --> 00:03:03,979 We will be visiting with them hopefully here in the next 69 00:03:03,979 --> 00:03:06,699 month or so and we'll bring that back to you when we have 70 00:03:06,699 --> 00:03:07,199 the formal 71 00:03:07,360 --> 00:03:08,800 recommendation 72 00:03:08,800 --> 00:03:11,099 The fund does maintain like I said a duck coverage ratio 73 00:03:11,099 --> 00:03:13,770 greater than 1.25 percent the current fiscal year in all 74 00:03:13,770 --> 00:03:14,639 the future years 75 00:03:14,639 --> 00:03:18,240 And then the fund balance is above the target of 14 to 18 76 00:03:18,240 --> 00:03:18,719 percent 77 00:03:19,919 --> 00:03:21,919 flip here 78 00:03:22,240 --> 00:03:25,009 Operational expenses are cost containment strategies that 79 00:03:25,009 --> 00:03:26,719 is included in the budget in front of you today 80 00:03:27,199 --> 00:03:29,990 Staff has been working to realign business units to improve 81 00:03:29,990 --> 00:03:33,520 financial reporting of the different operations to landfill 82 00:03:34,080 --> 00:03:36,810 We are proposing a zero base budget for travel training 83 00:03:36,810 --> 00:03:38,520 outside contract services 84 00:03:39,360 --> 00:03:41,439 And we will be working to implement the staffing plans from 85 00:03:41,439 --> 00:03:42,659 the operational review 86 00:03:43,000 --> 00:03:45,909 Once staff presents those to the committee on environment 87 00:03:45,909 --> 00:03:47,520 the pub and the City Council 88 00:03:48,199 --> 00:03:52,030 Equipment of vehicles staff has created new procedures in- 89 00:03:52,030 --> 00:03:53,439 house to evaluate 90 00:03:53,919 --> 00:03:56,430 Equipment utilization the maintenance cost of the equipment 91 00:03:56,430 --> 00:03:59,240 and when is the appropriate time to sell it and replace it 92 00:04:00,039 --> 00:04:02,039 capital improvement program 93 00:04:02,120 --> 00:04:03,520 our plan 94 00:04:03,520 --> 00:04:06,340 We are going to continue to use business case analysis to 95 00:04:06,340 --> 00:04:09,330 evaluate a project's feasibility the cost and the benefit 96 00:04:09,330 --> 00:04:10,319 of it moving forward 97 00:04:10,960 --> 00:04:13,870 And we this fund is reducing its reliance on debt services 98 00:04:13,870 --> 00:04:17,399 the primary funding source for equipment and vehicles 99 00:04:20,920 --> 00:04:23,079 The future risk and mitigations of this fun 100 00:04:24,560 --> 00:04:27,170 Currently staff is working with blue ridge services that PB 101 00:04:27,170 --> 00:04:29,600 had a presentation from on July 9th 102 00:04:32,040 --> 00:04:35,709 To develop a market study and actually it's not new gen. It 103 00:04:35,709 --> 00:04:36,379 's a blue ridge 104 00:04:36,379 --> 00:04:38,930 I think I suppose that blue ridge services to complete a 105 00:04:38,930 --> 00:04:41,639 market study to assess the landfill fees 106 00:04:42,079 --> 00:04:45,029 This study should be completed in this month once it is 107 00:04:45,029 --> 00:04:45,560 completed 108 00:04:46,040 --> 00:04:48,589 It'll benchmark those fees of surrounding facilities around 109 00:04:48,589 --> 00:04:51,850 the Metroplex. We will bring that forward to the pub once 110 00:04:51,850 --> 00:04:52,819 it is complete 111 00:04:53,439 --> 00:04:56,500 Market conditions for recycling we have seen in an increase 112 00:04:56,500 --> 00:04:59,800 in contamination the recycling streams in the community 113 00:04:59,920 --> 00:05:02,339 We will continue to partner with the school districts and 114 00:05:02,339 --> 00:05:06,120 the community to increase commercial recycling residential 115 00:05:06,120 --> 00:05:07,860 recycling to decrease the amount of contamination 116 00:05:09,240 --> 00:05:12,839 Changes to regulatory compliance the current fiscal year 117 00:05:12,839 --> 00:05:15,000 budget 19 as it sets today 118 00:05:15,600 --> 00:05:18,379 Is proposing to fully fund the yearly contribution to the 119 00:05:18,379 --> 00:05:21,410 closure fund for the landfill and I'll point that out to 120 00:05:21,410 --> 00:05:22,439 you here in just a second 121 00:05:22,439 --> 00:05:24,439 on a couple slides down 122 00:05:24,839 --> 00:05:27,089 Environmental safety risk we want to continue to build upon 123 00:05:27,089 --> 00:05:28,240 regulatory compliance 124 00:05:28,800 --> 00:05:31,819 Processes and then we are in the process of implementing a 125 00:05:31,819 --> 00:05:34,339 robust safety program and solid waste fund based on the 126 00:05:34,339 --> 00:05:36,220 operational review from blue ridge services 127 00:05:38,920 --> 00:05:42,199 This is the five-year pro forma as I stated before this is 128 00:05:42,199 --> 00:05:44,120 we're proposing this is a placeholder budget 129 00:05:44,519 --> 00:05:47,600 We will come back to the PB by February 1st of 2019 130 00:05:48,399 --> 00:05:50,490 Once we have time to visit with the CoE committee on 131 00:05:50,490 --> 00:05:53,360 environment the PB and council further regarding the 132 00:05:53,360 --> 00:05:54,360 operation review 133 00:05:54,360 --> 00:05:57,370 I do want to point out that this budget also includes the 134 00:05:57,370 --> 00:06:00,279 BMR the building materials recovery operation and the rub 135 00:06:00,279 --> 00:06:00,439 ble 136 00:06:00,560 --> 00:06:02,560 Processing operation are still in this budget 137 00:06:02,720 --> 00:06:05,129 So when we come back to you in February if the direction is 138 00:06:05,129 --> 00:06:07,670 to discontinue those operations, they will be removed from 139 00:06:07,670 --> 00:06:08,079 the budget 140 00:06:08,480 --> 00:06:10,480 But they are not removed right now 141 00:06:10,560 --> 00:06:14,629 As you can see here and the proposed 2019 budget which is 142 00:06:14,629 --> 00:06:15,560 here in this column 143 00:06:15,560 --> 00:06:17,860 We're proposing thirty four point eight million dollars in 144 00:06:17,860 --> 00:06:20,920 revenues about thirty four point eight million dollars in 145 00:06:20,920 --> 00:06:21,759 expenditures 146 00:06:22,319 --> 00:06:25,230 We are proposing to draw down the fund balance about three 147 00:06:25,230 --> 00:06:26,920 hundred forty nine thousand dollars 148 00:06:27,600 --> 00:06:29,750 And as you can see down here, we're proposing no rate 149 00:06:29,750 --> 00:06:33,240 increases for residential customers or commercial customers 150 00:06:34,240 --> 00:06:37,050 The fund balance you can see it down here. It's eight point 151 00:06:37,050 --> 00:06:38,319 two million 152 00:06:39,000 --> 00:06:41,660 Then the target of four point eight to six point two 153 00:06:41,660 --> 00:06:44,300 I do want to point out the fund balance does go from eight 154 00:06:44,300 --> 00:06:46,319 point two million to eighteen million 155 00:06:47,120 --> 00:06:49,660 Staff will be recommended to use this fund balance to 156 00:06:49,660 --> 00:06:52,269 implement the rate correction strategy. Once it is 157 00:06:52,269 --> 00:06:53,519 completed with NUGEN 158 00:06:54,240 --> 00:06:56,329 We'll be able to use that moving forward. So it is a 159 00:06:56,329 --> 00:06:57,480 positive thing for this fund 160 00:06:58,160 --> 00:07:01,319 the debt coverage ratio as I pointed out earlier is 161 00:07:02,360 --> 00:07:06,970 one point three four in FY 2019 and it does increase to two 162 00:07:06,970 --> 00:07:08,519 point nine five in the future years 163 00:07:08,680 --> 00:07:11,319 So there's way above the one point five to five target 164 00:07:11,319 --> 00:07:13,800 quick question on that. Yes, sir 165 00:07:14,800 --> 00:07:16,800 so 166 00:07:17,439 --> 00:07:21,379 Work capital plus operating reserves at those levels 167 00:07:22,279 --> 00:07:24,279 but that does include 168 00:07:24,639 --> 00:07:26,639 all the 169 00:07:27,920 --> 00:07:31,240 Expenses offset by some revenue, of course on the 170 00:07:35,839 --> 00:07:38,879 The BMG or the BMR 171 00:07:40,800 --> 00:07:41,600 That's correct 172 00:07:41,600 --> 00:07:45,199 So there are some revenues in this budget for the BMR some 173 00:07:45,199 --> 00:07:47,759 material cells commodities that they sort through 174 00:07:48,120 --> 00:07:50,620 And the expenditures are also in here too for both 175 00:07:50,620 --> 00:07:54,279 operations for the BMR and the rubble process and operation 176 00:07:54,480 --> 00:07:56,610 There's not much revenue in here for the rubble process and 177 00:07:56,610 --> 00:07:59,069 operation more expenditures than revenues, but both of them 178 00:07:59,069 --> 00:07:59,480 are in here 179 00:08:00,920 --> 00:08:04,680 So these numbers are good change depending upon what we 180 00:08:04,680 --> 00:08:06,740 what is decided in February 181 00:08:06,740 --> 00:08:08,829 That is correct once staff has time to visit with the 182 00:08:08,829 --> 00:08:09,560 Committee on Environment 183 00:08:10,600 --> 00:08:13,389 Pb further discussions and further discussion with council 184 00:08:13,389 --> 00:08:14,959 these these numbers could change 185 00:08:14,959 --> 00:08:18,269 Okay, I think the other thing to point out is you can see 186 00:08:18,269 --> 00:08:20,560 the impact in the out years of the debt service 187 00:08:20,560 --> 00:08:23,660 Yeah, that's that's great. That's really leading to the 188 00:08:23,660 --> 00:08:26,459 reserves being higher and giving us the ability to adjust 189 00:08:26,459 --> 00:08:27,399 funds on the 190 00:08:27,879 --> 00:08:30,579 Over the next few years and not really have an adverse 191 00:08:30,579 --> 00:08:31,800 impact in this fund 192 00:08:31,800 --> 00:08:34,200 So it's a good position to be in right now. We just didn't 193 00:08:34,200 --> 00:08:35,720 feel comfortable reducing 194 00:08:36,519 --> 00:08:38,830 Rates any further until we knew what the outcome of some of 195 00:08:38,830 --> 00:08:40,759 these other programs is gonna bring. Okay 196 00:08:42,840 --> 00:08:45,039 Any more questions in this slide I'll move on 197 00:08:46,840 --> 00:08:49,750 These are the resources so the revenues of the solid waste 198 00:08:49,750 --> 00:08:49,980 fund 199 00:08:49,980 --> 00:08:52,240 I'm gonna want to point a few things out here and the 200 00:08:52,240 --> 00:08:55,419 adopted 18 budget as you can see here in this column 201 00:08:55,559 --> 00:08:58,480 We had thirty nine point three million dollars in revenues 202 00:08:58,840 --> 00:09:01,899 We are estimating that to be thirty four point nine million 203 00:09:01,899 --> 00:09:03,039 finishing the year 204 00:09:03,039 --> 00:09:05,440 And the reason behind that is that we're removing the 205 00:09:05,440 --> 00:09:08,850 landfill mining operation revenues that were forecasted in 206 00:09:08,850 --> 00:09:11,799 the public sales in the city's natural gas station 207 00:09:12,440 --> 00:09:14,950 Moving forward the proposed budget, of course, we're not 208 00:09:14,950 --> 00:09:17,350 including those revenues and the projections. We're 209 00:09:17,350 --> 00:09:19,259 projecting thirty four point eight million 210 00:09:20,000 --> 00:09:22,679 Do want to point out here on the transfers in this transfer 211 00:09:22,679 --> 00:09:26,100 in as a transfer into from the salt from the general fund 212 00:09:26,120 --> 00:09:29,720 To solid waste to fund the building lease for 651 Mayhill 213 00:09:29,720 --> 00:09:32,820 if you remember that's where materials management and 214 00:09:32,820 --> 00:09:34,440 traffic will be relocating to 215 00:09:34,919 --> 00:09:38,049 And the use of the reserves that that's in part because we 216 00:09:38,049 --> 00:09:41,159 chose to reduce the rates for residential because we 217 00:09:41,759 --> 00:09:43,039 Yeah, so 218 00:09:43,039 --> 00:09:45,879 We can point that up here if you see the residential 219 00:09:46,360 --> 00:09:49,100 Revenue was six point two million projected in eighteen 220 00:09:49,100 --> 00:09:51,159 projected goes to five point six 221 00:09:51,399 --> 00:09:53,350 Same thing with residential recycling and that is 222 00:09:53,350 --> 00:09:55,440 associated with twelve percent rate decrease 223 00:09:56,120 --> 00:09:59,169 Yeah, so we're projecting to use reserves in the 2019 224 00:09:59,169 --> 00:10:01,289 budget but moving forward we won't be drawing on the 225 00:10:01,289 --> 00:10:01,720 reserves 226 00:10:02,159 --> 00:10:04,500 And we knew that at the time we made that decision. That's 227 00:10:04,500 --> 00:10:04,759 great 228 00:10:07,120 --> 00:10:09,279 These are the expenditures by categories 229 00:10:09,799 --> 00:10:13,399 As Todd had pointed out earlier the debt service is 230 00:10:13,399 --> 00:10:16,850 decreasing in 2018 the adopted budget was nine point six 231 00:10:16,850 --> 00:10:17,279 million 232 00:10:17,279 --> 00:10:20,019 It is coming down about seven hundred thousand eight point 233 00:10:20,019 --> 00:10:22,440 nine million in the 2019 proposed budget 234 00:10:24,039 --> 00:10:26,370 So we're proposing thirty four point eight million in 235 00:10:26,370 --> 00:10:27,059 expenditures 236 00:10:30,960 --> 00:10:33,500 This is could you go back I have one more question and I 237 00:10:33,500 --> 00:10:35,720 think I know the answer but I want to hear it from you 238 00:10:36,600 --> 00:10:39,649 We look like we're our estimates for this year first 239 00:10:39,649 --> 00:10:42,440 personal services is ten point five million 240 00:10:42,440 --> 00:10:45,480 It's going up to eleven point two, but we're cutting ten 241 00:10:45,480 --> 00:10:45,940 people 242 00:10:46,759 --> 00:10:48,759 so right so 243 00:10:49,600 --> 00:10:52,769 In the 2018 budget and currently right now there's 20 vac 244 00:10:52,769 --> 00:10:53,919 ancies in the solid waste fund 245 00:10:54,440 --> 00:10:56,529 We are going to be proposing to refill some of those vac 246 00:10:56,529 --> 00:10:59,879 ancies in 2019 to address some of the maintenance issues 247 00:10:59,879 --> 00:11:02,960 We've been seen and to implement the safety program and the 248 00:11:02,960 --> 00:11:06,120 solid waste fund. So that is the increase you're seeing 249 00:11:06,120 --> 00:11:08,870 So we're projecting them to stay vacant pretty much through 250 00:11:08,870 --> 00:11:11,370 the rest of this year and then we propose to fill them in 251 00:11:11,370 --> 00:11:11,960 next year 252 00:11:11,960 --> 00:11:15,139 That's what I thought. I just want to make sure thank you. 253 00:11:15,139 --> 00:11:17,399 So so when we have FTEs, we're looking at 254 00:11:21,559 --> 00:11:25,309 That's correct. Um, so the budgeted I think this is what 255 00:11:25,309 --> 00:11:27,940 you're asking them in the budget at 18 adopted budget 256 00:11:28,080 --> 00:11:30,889 This would be fully staffed here. So everybody being 257 00:11:30,889 --> 00:11:32,440 employed eleven point six million 258 00:11:32,519 --> 00:11:35,500 We're projecting some vacancies and some salary savings in 259 00:11:35,500 --> 00:11:38,460 the estimate and those will be filled. That's correct. We 260 00:11:38,460 --> 00:11:39,279 're anticipating filling those 261 00:11:39,279 --> 00:11:41,279 That's correct. Thank you. Yeah 262 00:11:47,240 --> 00:11:49,889 One other thing that may not be apparent up here we are 263 00:11:49,889 --> 00:11:53,399 transitioning away from contracted temporary labor and then 264 00:11:53,399 --> 00:11:54,639 hiring our own staff 265 00:11:54,639 --> 00:11:56,759 And so that's one of the reasons why we wanted to maintain 266 00:11:56,759 --> 00:11:57,759 some of those vacancies 267 00:11:58,120 --> 00:12:00,450 As a matter of fact, we're starting to post some of those 268 00:12:00,450 --> 00:12:01,720 positions on the street 269 00:12:01,960 --> 00:12:04,179 we just feel like it's a better opportunity for us to grow 270 00:12:04,179 --> 00:12:05,740 our own talent and have kind of a 271 00:12:06,120 --> 00:12:08,360 Some bench strength to draw from in the future as we 272 00:12:08,360 --> 00:12:11,029 develop our own staff versus contracting out on a 273 00:12:11,029 --> 00:12:12,000 consistent basis 274 00:12:12,000 --> 00:12:15,340 So in 18 19, you see some of that kind of kicking in there 275 00:12:18,240 --> 00:12:20,129 All right, any more questions on the expenditures I'll be 276 00:12:20,129 --> 00:12:24,399 happy to answer them or Ethan will come back up here 277 00:12:25,360 --> 00:12:28,399 All right. This is the solid waste materials forecast table 278 00:12:28,799 --> 00:12:31,399 We are projecting about a two point four percent growth in 279 00:12:31,399 --> 00:12:34,320 the residential customers. You can see that number 280 00:12:34,919 --> 00:12:36,679 Right here on your screen 281 00:12:36,679 --> 00:12:39,090 We're projecting about a one point five eight percent 282 00:12:39,090 --> 00:12:41,600 growth in the front load side load customers commercial 283 00:12:41,600 --> 00:12:42,200 customers 284 00:12:42,799 --> 00:12:45,250 We are projecting a little bit more for roll-off customers 285 00:12:45,250 --> 00:12:47,759 based on the construction around the community about seven 286 00:12:47,759 --> 00:12:48,759 point one six percent 287 00:12:49,759 --> 00:12:52,320 landfill wholesale customer tons were just increasing a 288 00:12:52,320 --> 00:12:53,720 point two five percent 289 00:12:53,720 --> 00:12:56,240 So we're projecting for it to increase and landfill retail 290 00:12:56,240 --> 00:12:58,629 tons based on tonnage coming to the gate about an eight 291 00:12:58,629 --> 00:13:00,320 point four eight percent increase 292 00:13:02,879 --> 00:13:06,480 Quite a bit of increase that is coming in the game if you 293 00:13:06,480 --> 00:13:06,720 look at 294 00:13:07,919 --> 00:13:09,919 2015 to 19 that's 295 00:13:12,799 --> 00:13:14,799 31 296 00:13:15,799 --> 00:13:17,799 But you're actually seeing that 297 00:13:18,919 --> 00:13:20,919 But you're saying that I mean that's 298 00:13:21,399 --> 00:13:24,399 18 that's real numbers and some of this increase here 299 00:13:24,399 --> 00:13:26,929 I like to think from being it's always previously before my 300 00:13:26,929 --> 00:13:27,759 current position 301 00:13:28,600 --> 00:13:30,740 Is due to people commuting to them, you know 302 00:13:30,740 --> 00:13:33,179 Louisville or to the Metroplex of the other facilities must 303 00:13:33,179 --> 00:13:35,649 kind of being closer with the traffic and the amount of 304 00:13:35,649 --> 00:13:36,360 time it takes to 305 00:13:36,360 --> 00:13:38,000 travel there 306 00:13:38,000 --> 00:13:41,360 So, you know the population increasing around the community 307 00:13:43,639 --> 00:13:45,639 I 308 00:13:48,039 --> 00:13:50,779 Okay, these are the next steps so as I stated earlier this 309 00:13:50,779 --> 00:13:52,799 is a work session item 310 00:13:52,799 --> 00:13:54,919 We actually have another item on here for individual 311 00:13:54,919 --> 00:13:55,480 consideration 312 00:13:55,559 --> 00:13:58,700 Well, we will be asking the pub to adopt the budget is in 313 00:13:58,700 --> 00:14:01,279 front of you today as a placeholder budget 314 00:14:01,600 --> 00:14:04,120 Once staff has time to visit with the community environment 315 00:14:04,120 --> 00:14:06,759 the P being counsel further in the operational review 316 00:14:07,080 --> 00:14:10,259 We will come back by February 1st of next year of 2019 317 00:14:12,960 --> 00:14:15,279 Let's see counsel is scheduled to adopt the solid waste and 318 00:14:15,279 --> 00:14:18,240 operating budget capital budget 319 00:14:19,120 --> 00:14:23,080 by September 18 2018 actually on September 18 2018 320 00:14:23,600 --> 00:14:25,450 As I stated earlier, there are no residential rate 321 00:14:25,450 --> 00:14:27,519 increases or commercial increases in here 322 00:14:27,600 --> 00:14:31,350 We are proposing to increase the wholesale rate from $23 a 323 00:14:31,350 --> 00:14:32,679 ton to 2450 324 00:14:33,720 --> 00:14:37,320 And then staff will bring the FY 2018 solid rate ordinance 325 00:14:37,320 --> 00:14:40,200 to the pub during August or formal approval 326 00:14:40,240 --> 00:14:42,240 So you'll be seeing that here in the next month 327 00:14:43,120 --> 00:14:44,840 That 328 00:14:44,840 --> 00:14:46,970 Concludes the financial part of the presentation Ethan Cox 329 00:14:46,970 --> 00:14:48,840 the director will come up here for the next part of the 330 00:14:48,840 --> 00:14:49,440 presentation 331 00:14:50,159 --> 00:14:52,320 If you have any questions for me, I'll stand for him. 332 00:14:52,320 --> 00:14:54,519 Otherwise, he will come up. Thank you 333 00:15:04,279 --> 00:15:05,519 Thank you Nick 334 00:15:05,519 --> 00:15:07,519 Ethan Cox director of solid waste for the city 335 00:15:08,240 --> 00:15:10,320 Just a few brief presentation a few brief slides for you 336 00:15:10,320 --> 00:15:11,600 here in the presentation 337 00:15:12,360 --> 00:15:14,600 a lot of this we've already kind of covered either 338 00:15:15,120 --> 00:15:17,639 earlier in the presentation or prior presentations 339 00:15:17,639 --> 00:15:19,549 But just kind of hit the highlights in terms of 340 00:15:19,549 --> 00:15:22,240 accomplishments. We talked about the 12% rate reduction for 341 00:15:22,240 --> 00:15:23,360 our residential customers 342 00:15:23,919 --> 00:15:26,440 Nick also highlighted our restructured capital plan 343 00:15:26,440 --> 00:15:30,159 I want to point out that's due to a significant amount of 344 00:15:30,159 --> 00:15:31,559 work and effort by not just our 345 00:15:31,960 --> 00:15:34,120 Managers, but also our financial staff Nick 346 00:15:34,639 --> 00:15:36,039 Tina Lee 347 00:15:36,039 --> 00:15:38,919 Rodriguez everyone that's kind of contributed to this over 348 00:15:38,919 --> 00:15:40,120 the last several months 349 00:15:40,120 --> 00:15:42,860 We started this process about 14 months ago. So it's been 350 00:15:42,860 --> 00:15:44,919 like the longest budget process known to man 351 00:15:45,799 --> 00:15:48,659 But I think we've come out the other side relatively unsc 352 00:15:48,659 --> 00:15:51,399 athed during that process. We did a lot of business case 353 00:15:51,399 --> 00:15:52,080 analysis 354 00:15:52,320 --> 00:15:54,970 We have a few of those up here landfill mining the CNG fuel 355 00:15:54,970 --> 00:15:57,980 ing station the liquid waste disposal operation 356 00:15:58,480 --> 00:16:00,889 There's some real numbers associated with those and I think 357 00:16:00,889 --> 00:16:03,320 that leads to where you're seeing some of the improved 358 00:16:03,799 --> 00:16:06,710 Outlook over the next five years some of our goals for 359 00:16:06,710 --> 00:16:08,360 fifth fiscal year 18 19 360 00:16:08,360 --> 00:16:10,440 We do want to implement some of the recommendations from 361 00:16:10,440 --> 00:16:11,960 the rate study as Nick alluded to 362 00:16:12,360 --> 00:16:14,990 We do have some audit recommendations from last fall that 363 00:16:14,990 --> 00:16:15,919 we're continuing to work on 364 00:16:15,919 --> 00:16:18,600 We're gonna have a second round of an audit on our scale 365 00:16:18,600 --> 00:16:18,940 house 366 00:16:19,360 --> 00:16:21,509 That will be returning to the pub and the council on in the 367 00:16:21,509 --> 00:16:22,600 next couple of months 368 00:16:22,600 --> 00:16:25,250 And then we'll also be as Nick alluded to coming back 369 00:16:25,250 --> 00:16:28,659 through the CoE the pub and the council with the 370 00:16:28,659 --> 00:16:29,879 operational review 371 00:16:30,320 --> 00:16:32,139 One other big highlight that's going to be coming up in the 372 00:16:32,139 --> 00:16:33,519 next few months. Hopefully 373 00:16:34,039 --> 00:16:37,639 Is that the TCEQ will formally adopt our new operating 374 00:16:37,639 --> 00:16:38,759 permit 1590 B 375 00:16:38,759 --> 00:16:42,539 Which should give us 30 to 50 more years of landfill life 376 00:16:42,539 --> 00:16:43,139 capacity 377 00:16:46,240 --> 00:16:48,799 In terms of budget emphasis, you know what we always try to 378 00:16:48,799 --> 00:16:50,039 do is link this back to strategy 379 00:16:50,679 --> 00:16:52,470 For years solid waste has been really about pushing the 380 00:16:52,470 --> 00:16:55,559 envelope being innovative bringing on new programs 381 00:16:56,200 --> 00:16:58,039 Not that we don't feel like that's important 382 00:16:58,039 --> 00:17:00,429 But what we're shooting for is a more balanced strategy our 383 00:17:00,429 --> 00:17:00,960 goal 384 00:17:01,360 --> 00:17:03,759 The reason why we exist our purpose is to provide 385 00:17:03,759 --> 00:17:06,400 exceptional value to our customers our ratepayers 386 00:17:06,839 --> 00:17:09,390 We have a critical service for the community and we want to 387 00:17:09,390 --> 00:17:11,839 make sure that we're delivering the best value to them that 388 00:17:11,839 --> 00:17:12,160 we can 389 00:17:12,640 --> 00:17:15,039 So part of our focus in achieving that end is we want to 390 00:17:15,039 --> 00:17:17,319 have kind of a balanced approach if you will 391 00:17:17,440 --> 00:17:20,259 It's not just all about financial results. It's not just 392 00:17:20,259 --> 00:17:21,980 about you know efficiency 393 00:17:22,039 --> 00:17:24,130 We want to make sure that we're keeping our eye on all 394 00:17:24,130 --> 00:17:26,119 these things that you have up here on the board 395 00:17:26,119 --> 00:17:29,000 So it's financial it's being having an excellent operation 396 00:17:30,319 --> 00:17:32,720 Having that customer focus that it's not just about quality 397 00:17:32,720 --> 00:17:34,119 of service. It's about breath 398 00:17:34,119 --> 00:17:36,450 It's also about being available for them when they need us 399 00:17:36,450 --> 00:17:39,039 and then also from a sustainability standpoint 400 00:17:39,039 --> 00:17:41,250 It's not just being environmentally sustainable. It's 401 00:17:41,250 --> 00:17:43,740 financially sustainable and it's also making sure that what 402 00:17:43,740 --> 00:17:47,000 we're doing is in concert with what the community wants 403 00:17:47,480 --> 00:17:50,500 So our cost drivers and considerations customer growth and 404 00:17:50,500 --> 00:17:51,880 increased service demands 405 00:17:51,880 --> 00:17:54,200 I think that's par for the course for most city services 406 00:17:54,559 --> 00:17:57,569 But we do have some regulatory requirements if the state or 407 00:17:57,569 --> 00:18:00,569 the EPA has an unfunded mandate then that can certainly hit 408 00:18:00,569 --> 00:18:01,519 our bottom line 409 00:18:02,359 --> 00:18:04,579 We also have some market pressures that some of the other 410 00:18:04,579 --> 00:18:06,960 utilities are not necessarily exposed to 411 00:18:07,599 --> 00:18:10,039 As Nick alluded to we pointed to the the retail and the 412 00:18:10,039 --> 00:18:11,839 wholesale side of things 413 00:18:12,000 --> 00:18:14,700 Our landfill is a regional in regional competition with 414 00:18:14,700 --> 00:18:16,200 other landfills for revenue 415 00:18:16,619 --> 00:18:19,339 We also have the construction industry that also leads into 416 00:18:19,339 --> 00:18:21,720 some of the retail increase that you saw there 417 00:18:21,920 --> 00:18:24,390 That also hits our roll-off business. And so if 418 00:18:24,390 --> 00:18:27,920 construction dries up you can really see a pretty 419 00:18:28,440 --> 00:18:30,859 Kind of a depressed effect on our revenues 420 00:18:31,720 --> 00:18:34,930 Nick alluded to it earlier that we had 2.3 million in unrec 421 00:18:34,930 --> 00:18:37,420 ognized revenues from landfill mining and C&G sales 422 00:18:37,759 --> 00:18:39,759 And that was removed from this year's budget 423 00:18:41,480 --> 00:18:44,359 Turns of process improvements for 1718 we've hit most of 424 00:18:44,359 --> 00:18:47,359 these we do have the checks and balances for budget and CIP 425 00:18:47,359 --> 00:18:48,400 our managers 426 00:18:48,400 --> 00:18:51,519 Are all over their budgets now. They see reports monthly 427 00:18:51,519 --> 00:18:53,400 making sure that they're on track 428 00:18:53,839 --> 00:18:56,440 We question anomalies or issues when we see them 429 00:18:56,440 --> 00:18:59,319 I think everyone's much more attuned to where their budget 430 00:18:59,319 --> 00:19:02,250 is now. We also centralized project management contract 431 00:19:02,250 --> 00:19:02,799 management 432 00:19:03,519 --> 00:19:05,519 Purchasing kind of streamlined some of that 433 00:19:06,400 --> 00:19:09,200 Provided some more controls. We're still purchasing the 434 00:19:09,200 --> 00:19:10,079 things that we need 435 00:19:10,640 --> 00:19:13,400 But we have a little bit extra oversight on those things 436 00:19:14,079 --> 00:19:16,000 We're also continuing to work through improved processes 437 00:19:16,000 --> 00:19:17,960 and internal controls for our scale house 438 00:19:18,759 --> 00:19:20,730 That's essentially the touch point for all the customers 439 00:19:20,730 --> 00:19:23,670 entering our facility. I call it the nerve center of our 440 00:19:23,670 --> 00:19:24,079 operation 441 00:19:24,519 --> 00:19:26,640 All the cash handling happens there all the data that's 442 00:19:26,640 --> 00:19:28,440 recorded from a regulatory standpoint 443 00:19:29,079 --> 00:19:31,670 It cannot be a more critical operation than that one right 444 00:19:31,670 --> 00:19:34,960 there. And so it's getting a lot of attention right now 445 00:19:35,559 --> 00:19:37,250 Turns a future process improvements. We are going to be 446 00:19:37,250 --> 00:19:39,769 implementing some resource management processes. Some of 447 00:19:39,769 --> 00:19:40,960 those are already in play 448 00:19:41,200 --> 00:19:43,410 That's are we staffed effectively? Do we know what our 449 00:19:43,410 --> 00:19:46,109 needs are? How do we quantify those? What happens in a 450 00:19:46,109 --> 00:19:46,799 contingency? 451 00:19:47,559 --> 00:19:50,299 So all that's going to be a key focus area for us as is 452 00:19:50,299 --> 00:19:53,599 improved inventory systems for our carts our containers 453 00:19:54,240 --> 00:19:56,329 Making sure that we're only ordering those when we really 454 00:19:56,329 --> 00:19:58,039 need to and that we order it just in time 455 00:19:58,039 --> 00:20:01,069 And then as Nick mentioned earlier implementing a formal 456 00:20:01,069 --> 00:20:02,799 training and safety program 457 00:20:03,160 --> 00:20:05,880 It's just not something we want to mess around with we have 458 00:20:05,880 --> 00:20:09,000 big pieces of equipment that can do some real damage and 459 00:20:09,519 --> 00:20:11,829 We want to make sure that we're protecting our staff the 460 00:20:11,829 --> 00:20:14,319 people that we serve and also the city's assets 461 00:20:16,039 --> 00:20:17,839 In terms of cost containment 462 00:20:17,839 --> 00:20:19,920 one of the things that I want to emphasize and this is kind 463 00:20:19,920 --> 00:20:20,119 of the 464 00:20:20,359 --> 00:20:23,420 The fruit of all the the laborers for the staff over the 465 00:20:23,420 --> 00:20:24,880 last several months is 466 00:20:25,440 --> 00:20:29,039 Fiscal year 17 18 expenditures are about 11% under what we 467 00:20:29,039 --> 00:20:31,440 budgeted last year. That's about four point four million 468 00:20:31,440 --> 00:20:32,279 dollars in savings 469 00:20:32,839 --> 00:20:35,400 That's due in large part to the restructure capital plan 470 00:20:35,920 --> 00:20:38,230 Understand that this year's reduction you do see that debt 471 00:20:38,230 --> 00:20:39,400 service stepping down 472 00:20:39,400 --> 00:20:41,799 And so that's going to give us a lot of flexibility to 473 00:20:41,799 --> 00:20:44,740 implement that rate reduction or rate correction strategy 474 00:20:45,960 --> 00:20:49,190 it's also allowed for the residential rate decrease of 12% 475 00:20:49,190 --> 00:20:49,440 and 476 00:20:50,079 --> 00:20:53,279 Had we not made some of the tough decisions that not only 477 00:20:53,279 --> 00:20:53,859 the pub 478 00:20:53,859 --> 00:20:56,630 But also the councils had to make with landfill mining and 479 00:20:56,630 --> 00:20:58,700 CNG if we didn't make those decisions 480 00:20:58,700 --> 00:21:01,289 We could be looking at a significant loss this year. Maybe 481 00:21:01,289 --> 00:21:04,640 upwards of four million dollars. And so I don't want to 482 00:21:05,599 --> 00:21:06,680 Emphasize that too strongly 483 00:21:06,680 --> 00:21:08,880 But I do want to tip my hat to staff to the managers that 484 00:21:08,880 --> 00:21:10,480 have worked really hard over the last 485 00:21:10,900 --> 00:21:12,900 13 or 14 months to achieve these results 486 00:21:15,079 --> 00:21:16,799 We talked about the positions earlier 487 00:21:16,799 --> 00:21:19,299 We do want to have some flexibility to complete our reorgan 488 00:21:19,299 --> 00:21:22,450 ization as well as start growing some of our own talent over 489 00:21:22,450 --> 00:21:23,119 the next few months 490 00:21:24,119 --> 00:21:27,119 Whenever we return to the pub in the council next winter 491 00:21:27,319 --> 00:21:29,470 Then one of the things that we'll be talking about is is 492 00:21:29,470 --> 00:21:31,920 our staffing where it needs to be and we need to make 493 00:21:31,920 --> 00:21:32,160 additional 494 00:21:32,400 --> 00:21:35,480 Adjustments here. I think we're just on the early edges of 495 00:21:35,480 --> 00:21:37,960 implementing what the blue ridge recommendations are 496 00:21:37,960 --> 00:21:40,980 And so this may change slightly, but I think we're in 497 00:21:40,980 --> 00:21:43,000 really good position with a lot of the vacancies 498 00:21:43,000 --> 00:21:45,000 We have to address some of our needs 499 00:21:45,960 --> 00:21:49,559 This is kind of an eye chart so get out your your good 500 00:21:49,559 --> 00:21:52,519 glasses. This is our capital plan 501 00:21:53,480 --> 00:21:56,000 For solid waste and like some of the other utilities 502 00:21:56,480 --> 00:21:59,490 We're not quite as long-term asset intensive. We're more 503 00:21:59,490 --> 00:22:03,000 focused on rolling stock shorter lived assets. So a lot of 504 00:22:03,000 --> 00:22:03,720 equipment 505 00:22:04,720 --> 00:22:06,839 Trucks some light duty vehicles, but you also have cell 506 00:22:06,839 --> 00:22:09,200 development that you've got to contend with 507 00:22:09,920 --> 00:22:12,670 Cell development comes around bus every six or seven years 508 00:22:12,670 --> 00:22:15,200 and so that's something that we could kind of deem as a 509 00:22:15,200 --> 00:22:16,059 short-term asset 510 00:22:16,059 --> 00:22:18,799 As well our goal on this is to really shift from debt 511 00:22:18,799 --> 00:22:22,180 service over to revenue funded capital as much as we can 512 00:22:22,480 --> 00:22:23,920 On this bottom line here 513 00:22:23,920 --> 00:22:26,990 You can kind of see where we started at revenue funded all 514 00:22:26,990 --> 00:22:27,960 the way up to about 515 00:22:28,160 --> 00:22:32,039 79% as we get to the fifth year in our projections and so 516 00:22:32,039 --> 00:22:34,039 we think we may be able to beat that 517 00:22:34,119 --> 00:22:35,319 It's a little bit early 518 00:22:35,319 --> 00:22:38,480 But in terms of maintaining our fleet taking better care of 519 00:22:38,480 --> 00:22:41,480 it, we do think that we'll be able to reduce some of our 520 00:22:41,480 --> 00:22:41,740 fleet 521 00:22:41,740 --> 00:22:43,740 And equipment needs in the out years as well 522 00:22:46,839 --> 00:22:48,390 And that is it for the departmental side I'll stand for any 523 00:22:48,390 --> 00:22:50,559 questions you might have 524 00:22:54,839 --> 00:22:58,599 Now that's that's good I appreciate the summary that that's 525 00:23:01,200 --> 00:23:03,869 Didn't take that one sure did seem a lot longer seem like 526 00:23:03,869 --> 00:23:06,000 it took a lot longer getting to that point 527 00:23:11,640 --> 00:23:14,000 My beard was solid brown when we started yeah 528 00:23:16,599 --> 00:23:18,599 Not quite I remember 529 00:23:22,599 --> 00:23:24,920 Thank you very much, yeah, thank you appreciate it 530 00:23:29,039 --> 00:23:31,039 Okay moving on 531 00:23:31,319 --> 00:23:33,319 to the regular meeting 532 00:23:33,759 --> 00:23:37,750 First we had the consent agenda. We have one item on the 533 00:23:37,750 --> 00:23:39,039 consent agenda 534 00:23:41,720 --> 00:23:44,079 Which is item a any 535 00:23:45,400 --> 00:23:48,319 Board member like to take that 536 00:23:49,680 --> 00:23:52,640 Out and put that into individual consideration 537 00:23:55,079 --> 00:23:57,079 Questions 538 00:23:57,440 --> 00:23:59,609 Hearing none is there a motion then on item a of the 539 00:23:59,609 --> 00:24:00,480 consent agenda 540 00:24:02,160 --> 00:24:04,160 I'll move approval 541 00:24:05,079 --> 00:24:09,240 Motion and a second discussion all in favor say aye 542 00:24:10,440 --> 00:24:12,440 Any opposed? 543 00:24:13,680 --> 00:24:15,680 Consent agenda passes 544 00:24:16,720 --> 00:24:20,339 Moving on to items for individual consideration item a is 545 00:24:20,339 --> 00:24:24,720 the public utility board draft minutes of July 9th 546 00:24:26,039 --> 00:24:28,039 2018 547 00:24:29,000 --> 00:24:32,920 These have been distributed in advance any corrections or 548 00:24:32,920 --> 00:24:35,279 comments 549 00:24:38,759 --> 00:24:40,519 Changes 550 00:24:40,519 --> 00:24:44,119 Hearing none. Is there a motion then on the minutes for 551 00:24:44,119 --> 00:24:46,440 July 9th 2018? 552 00:24:47,559 --> 00:24:49,559 recommend approval 553 00:24:50,640 --> 00:24:53,079 Second have a motion and a second to approve 554 00:24:54,240 --> 00:24:56,559 discussion all in favor say aye 555 00:25:00,000 --> 00:25:02,000 Thank you 556 00:25:07,079 --> 00:25:11,000 Okay, item B excuse me we're gonna wait on item B 557 00:25:12,079 --> 00:25:14,319 We really have to we need to 558 00:25:15,680 --> 00:25:17,980 Look at the budget before we set the right so 559 00:25:18,880 --> 00:25:22,950 We will put that usually works. Yeah, we're gonna move that 560 00:25:22,950 --> 00:25:24,680 to just before item G 561 00:25:24,680 --> 00:25:28,420 so we'll go right into item C which is to 562 00:25:29,319 --> 00:25:32,369 Consider recommending approval of the water fiscal year 563 00:25:32,369 --> 00:25:35,799 2018-19 operating and capital budget 564 00:25:44,240 --> 00:25:45,039 Pb members, my name is Tony point them the director finance 565 00:25:45,039 --> 00:25:48,259 just really quickly 566 00:25:48,960 --> 00:25:51,599 Want to just recap for you? 567 00:25:51,599 --> 00:25:55,200 I know we've had a lot of discussions with you over the 568 00:25:55,200 --> 00:25:58,440 last a couple of months couple weeks about this budget 569 00:25:59,039 --> 00:26:01,950 Well, we came back to you after we met with the City 570 00:26:01,950 --> 00:26:05,759 Council was the recommendation on a no rate increase 571 00:26:06,559 --> 00:26:09,519 Budget that's that's still the recommendation today 572 00:26:10,519 --> 00:26:15,279 This here is the financial forecast. We're looking at 573 00:26:16,079 --> 00:26:19,170 a little bit over 50 million dollars in expenses that's 574 00:26:19,170 --> 00:26:22,240 being recommended again, no rate increases 575 00:26:23,000 --> 00:26:26,160 For this year or projected for the next five years 576 00:26:27,079 --> 00:26:29,900 We have had a number of questions that have come up surely 577 00:26:29,900 --> 00:26:30,799 here by the Pb 578 00:26:30,799 --> 00:26:33,549 but also by the council that will continue to evaluate and 579 00:26:33,549 --> 00:26:35,680 look at this budget over the next few months and 580 00:26:36,200 --> 00:26:38,200 certainly as we prepare for 581 00:26:39,119 --> 00:26:43,740 Next year's budget not the 18-19, but the 19-20 budget then 582 00:26:43,740 --> 00:26:47,099 we'll be briefing you again on where we are again 583 00:26:47,720 --> 00:26:50,130 On an annual basis, we're going to be able to look at this 584 00:26:50,130 --> 00:26:50,519 forecast 585 00:26:50,519 --> 00:26:53,000 Not just within the context of a five-year but certainly 586 00:26:53,000 --> 00:26:54,220 within the context of a ten-year 587 00:26:54,680 --> 00:26:58,450 And if adjustments are necessary as we go through that will 588 00:26:58,450 --> 00:26:59,859 certainly be discussing that with you 589 00:26:59,900 --> 00:27:02,599 We think that this budget positions the fund well 590 00:27:03,720 --> 00:27:07,680 Certainly keeps our reserves within the targets that we 591 00:27:07,680 --> 00:27:08,799 have we certainly have 592 00:27:09,319 --> 00:27:12,019 Some large capital projects that are out there that we're 593 00:27:12,019 --> 00:27:14,839 cognizant of I will continue to evaluate those work with 594 00:27:14,839 --> 00:27:15,640 the department 595 00:27:16,039 --> 00:27:20,589 Look at prioritizing their capital projects. So I don't 596 00:27:20,589 --> 00:27:21,839 have anything further 597 00:27:21,839 --> 00:27:24,069 If you have any questions, I'll be happy to answer those 598 00:27:24,069 --> 00:27:24,880 questions again 599 00:27:24,880 --> 00:27:27,930 But our recommendation today is a budget with no rate 600 00:27:27,930 --> 00:27:29,759 change no changes to any of the rates 601 00:27:30,119 --> 00:27:32,119 And I'll stand for any questions that you may have 602 00:27:35,079 --> 00:27:37,079 Questions 603 00:27:45,799 --> 00:27:50,000 We sure have is there a motion to handle item C I'll move 604 00:27:50,000 --> 00:27:50,759 approval 605 00:27:52,480 --> 00:27:56,519 Second motion and a second to approve discussion 606 00:27:59,200 --> 00:28:03,720 No, no rate increase or decrease no change on the rate 607 00:28:06,960 --> 00:28:08,960 Any other discussion 608 00:28:09,279 --> 00:28:13,019 All in favor say aye. Aye any opposed same sign 609 00:28:13,680 --> 00:28:15,519 Okay 610 00:28:15,519 --> 00:28:18,140 Item D is to consider recommending approval of the 611 00:28:18,140 --> 00:28:20,160 wastewater and drainage fiscal year 612 00:28:20,880 --> 00:28:23,319 2018-19 operating and capital budget 613 00:28:28,319 --> 00:28:31,920 So again some similar situation here with this budget we've 614 00:28:31,920 --> 00:28:34,789 had a number of discussions with you just wanted to recap 615 00:28:34,789 --> 00:28:35,480 really quickly 616 00:28:36,160 --> 00:28:40,170 This budget does recommend a decrease of five percent in 617 00:28:40,170 --> 00:28:40,799 rates 618 00:28:41,599 --> 00:28:44,839 No rate increases projected currently over the next 619 00:28:45,519 --> 00:28:48,660 Four years of this planning window again, just like what 620 00:28:48,660 --> 00:28:52,480 the water budget will continue to evaluate the needs 621 00:28:53,000 --> 00:28:56,180 Capital programs and in this budget certainly just like on 622 00:28:56,180 --> 00:28:59,160 the water side. We also have a large 623 00:29:00,519 --> 00:29:04,240 Expansion or addition to our treatment facilities 624 00:29:04,720 --> 00:29:07,180 Out in the 10-year window that will continue to evaluate 625 00:29:07,180 --> 00:29:10,039 and and come back to you have those discussions with you 626 00:29:10,480 --> 00:29:12,480 This budget also as we previously discussed 627 00:29:13,359 --> 00:29:18,710 We were able to separate out the drainage component, but it 628 00:29:18,710 --> 00:29:19,920 's still part of this budget 629 00:29:19,920 --> 00:29:22,200 It was not separated out to a separate fund 630 00:29:23,160 --> 00:29:27,279 So we are also recommending no changes to that 631 00:29:27,920 --> 00:29:30,000 drainage budget we have had 632 00:29:30,880 --> 00:29:34,119 Half an FTE increase that's being recommended 633 00:29:34,759 --> 00:29:38,390 From what we previously discussed with you and that's just 634 00:29:38,390 --> 00:29:40,599 to continue to support that operation 635 00:29:41,279 --> 00:29:44,039 Again, we've seen this budget a couple of times with you 636 00:29:44,039 --> 00:29:47,099 I'll be happy to answer any questions that you may have our 637 00:29:47,099 --> 00:29:49,849 recommendation again is for a five percent decrease in 638 00:29:49,849 --> 00:29:50,160 rates 639 00:29:50,400 --> 00:29:52,809 We previously talked to you about where those how we're 640 00:29:52,809 --> 00:29:55,099 going to do that in a modified cost of service 641 00:29:55,640 --> 00:29:57,880 Strategy versus across the board. We'll talk a little more 642 00:29:57,880 --> 00:29:59,440 about that. We'll get to the rates 643 00:30:01,880 --> 00:30:03,880 Questions on the 644 00:30:04,599 --> 00:30:08,710 Wastewater drainage fiscal year 2018-19 operating capital 645 00:30:08,710 --> 00:30:09,559 budget 646 00:30:12,279 --> 00:30:14,680 Is there a motion then on item D 647 00:30:15,480 --> 00:30:16,839 move 648 00:30:16,839 --> 00:30:18,200 for 649 00:30:18,200 --> 00:30:20,440 Recommendation okay, we have a motion to approve 650 00:30:21,079 --> 00:30:23,799 Second and a second discussion 651 00:30:24,759 --> 00:30:26,759 All in favor say aye 652 00:30:27,000 --> 00:30:29,000 Any opposed? 653 00:30:29,640 --> 00:30:31,640 Okay, you're on a roll 654 00:30:41,279 --> 00:30:43,279 So 655 00:30:51,119 --> 00:30:54,160 Now we're on item B right I'm following this correctly, let 656 00:30:54,160 --> 00:30:57,920 's see. No, actually we're on item E. We'll wait 657 00:30:59,680 --> 00:31:01,680 Get through let's get through all the 658 00:31:02,400 --> 00:31:06,230 Budget stuff that will go to the rights. So item E is to 659 00:31:06,230 --> 00:31:07,200 consider 660 00:31:08,079 --> 00:31:09,640 recommending approval 661 00:31:09,640 --> 00:31:13,240 of the customer service fiscal year 2018-19 operating 662 00:31:13,240 --> 00:31:13,740 budget 663 00:31:14,759 --> 00:31:17,240 So as as we've discussed previously 664 00:31:18,039 --> 00:31:22,180 We our recommendation today is to create a new internal 665 00:31:22,180 --> 00:31:25,119 service fund for customer service 666 00:31:25,119 --> 00:31:28,720 This was previous all these expenses were previously in the 667 00:31:28,720 --> 00:31:29,619 water fund 668 00:31:30,039 --> 00:31:33,640 And as we discussed with you that was having an impact on 669 00:31:33,640 --> 00:31:36,559 how we calculated the required reserves in that fund 670 00:31:36,920 --> 00:31:40,519 Again, we presented this this discussion to the City 671 00:31:40,519 --> 00:31:40,880 Council 672 00:31:41,480 --> 00:31:44,529 Council was shown supportive and recommended approval will 673 00:31:44,529 --> 00:31:47,059 be presenting that to them contingent upon your approval 674 00:31:47,059 --> 00:31:47,400 today 675 00:31:48,079 --> 00:31:51,680 Because this establishes a separate internal service fund 676 00:31:51,680 --> 00:31:54,349 for 18-19 a little bit over five point three million 677 00:31:54,349 --> 00:31:56,200 dollars of expenses 678 00:31:56,480 --> 00:32:00,640 This fund is funded by transfers from the utilities 679 00:32:00,640 --> 00:32:01,440 primarily 680 00:32:02,119 --> 00:32:04,119 into this fund for 681 00:32:04,160 --> 00:32:07,930 Utility billing that is done through this operation that 682 00:32:07,930 --> 00:32:10,609 Tiffany Thompson is our customer service manager and she's 683 00:32:10,609 --> 00:32:11,200 not here today 684 00:32:11,200 --> 00:32:13,720 But I'll be happy to answer any questions that you may have 685 00:32:15,240 --> 00:32:17,920 That concludes my presentation for you. I 686 00:32:21,599 --> 00:32:23,599 Do have a question on the 687 00:32:25,680 --> 00:32:27,680 Allocation of the cost of service 688 00:32:28,400 --> 00:32:32,000 How is that calculated is that revenue driven or is that 689 00:32:32,000 --> 00:32:34,119 customer number of customer driven? 690 00:32:35,119 --> 00:32:38,220 Anything to probably help me here. He was he was there over 691 00:32:38,220 --> 00:32:38,960 that area 692 00:32:38,960 --> 00:32:41,369 But I believe this is based on the accounts number of 693 00:32:41,369 --> 00:32:43,440 accounts that are billed for each utility 694 00:32:48,039 --> 00:32:52,160 As you can see the the bulk of that is related to electric 695 00:32:57,599 --> 00:32:59,279 Okay 696 00:32:59,279 --> 00:33:00,960 Any other questions? 697 00:33:00,960 --> 00:33:03,769 Not a question, but a comment. I do think this is a much 698 00:33:03,769 --> 00:33:07,119 better way for all the utilities to be served 699 00:33:07,119 --> 00:33:09,400 So I think I said it before say it again 700 00:33:11,880 --> 00:33:13,880 Okay 701 00:33:15,480 --> 00:33:18,230 Comments or questions, is there a motion then on item II 702 00:33:18,230 --> 00:33:19,880 moved to approve 703 00:33:20,759 --> 00:33:23,160 We have a motion to approve. Is there a second? 704 00:33:24,480 --> 00:33:27,140 Second and a second any discussion 705 00:33:28,319 --> 00:33:30,319 All in favor say aye 706 00:33:31,039 --> 00:33:32,680 Any opposed 707 00:33:32,680 --> 00:33:34,480 motion passes 708 00:33:34,480 --> 00:33:37,630 Item F is to consider recommending approval of the solid 709 00:33:37,630 --> 00:33:38,720 waste fiscal year 710 00:33:39,640 --> 00:33:41,839 2018-19 operating and capital budget 711 00:33:47,039 --> 00:33:47,920 Good afternoon PB members, mr. Chairman's Nick Vincent 712 00:33:47,920 --> 00:33:52,759 utility business manager of the city of Denton 713 00:33:52,920 --> 00:33:55,009 They pull up here the solid waste presentation that we just 714 00:33:55,009 --> 00:33:55,680 walked through 715 00:34:01,079 --> 00:34:03,079 As 716 00:34:05,400 --> 00:34:08,010 I stated before we are seeking approval of the 18-19 budget 717 00:34:08,010 --> 00:34:11,719 is proposed to you today and it will be a placeholder 718 00:34:11,719 --> 00:34:12,400 budget 719 00:34:12,400 --> 00:34:15,179 We will come back to you at the first the fiscal year once 720 00:34:15,179 --> 00:34:18,119 we receive formal direction on the operational review 721 00:34:18,840 --> 00:34:20,460 If you have any questions, I'll be happy to answer them. If 722 00:34:20,460 --> 00:34:22,880 you didn't ask them last time. I'll be happy to answer them 723 00:34:24,920 --> 00:34:29,039 Okay, any questions anything come to anybody 724 00:34:31,119 --> 00:34:34,559 All right, is there a motion then on item F 725 00:34:36,480 --> 00:34:41,559 Recommend approval we have a motion to approve. Is there a 726 00:34:41,559 --> 00:34:45,559 second second second discussion 727 00:34:46,880 --> 00:34:48,880 All in favor say aye 728 00:34:49,400 --> 00:34:51,400 Any opposed same sign? 729 00:34:52,079 --> 00:34:54,679 Okay, we'll now move back up to item B 730 00:34:55,920 --> 00:34:59,019 Which is consider recommending an ordinance establishing 731 00:34:59,019 --> 00:35:01,119 the schedule of rates for water service 732 00:35:01,960 --> 00:35:03,840 providing for a repealer 733 00:35:03,840 --> 00:35:06,590 Providing for a severability clause and providing for an 734 00:35:06,590 --> 00:35:07,420 effective date 735 00:35:10,679 --> 00:35:15,239 Some as chairman and members of the Pb again no changes 736 00:35:15,239 --> 00:35:15,679 here 737 00:35:16,599 --> 00:35:19,360 Well one minor change we had briefly 738 00:35:20,639 --> 00:35:24,239 Communicated to you that the wholesale a raw water rate 739 00:35:24,239 --> 00:35:26,440 that we charge to the opportunity 740 00:35:26,800 --> 00:35:29,599 Would change a contingent upon the city of Dallas is rate 741 00:35:30,199 --> 00:35:32,199 It's 85% 742 00:35:32,400 --> 00:35:34,840 That we did receive that today 743 00:35:35,480 --> 00:35:37,480 And so that is now 744 00:35:38,079 --> 00:35:40,079 calculated at 745 00:35:40,679 --> 00:35:42,679 72 746 00:35:42,800 --> 00:35:44,199 86 747 00:35:44,199 --> 00:35:47,800 Since and so will we we will be updating the ordinance that 748 00:35:47,800 --> 00:35:51,480 we provided to you for the council consideration to update 749 00:35:51,480 --> 00:35:51,760 that 750 00:35:51,880 --> 00:35:54,719 Other than that, there's no changes from what we previously 751 00:35:55,840 --> 00:35:57,840 Communicated to you a couple of weeks ago 752 00:36:00,119 --> 00:36:02,280 Stand for any other questions any questions that you may 753 00:36:02,280 --> 00:36:02,360 have 754 00:36:03,360 --> 00:36:05,280 Okay 755 00:36:05,280 --> 00:36:09,360 And that rate is mandated by contract. Yes, that's correct 756 00:36:11,159 --> 00:36:13,159 Question other questions 757 00:36:13,599 --> 00:36:16,480 No, is there a motion then to recommend? 758 00:36:17,559 --> 00:36:19,559 item B 759 00:36:20,679 --> 00:36:22,679 Recommend approval 760 00:36:23,639 --> 00:36:25,639 Have a motion 761 00:36:26,920 --> 00:36:31,280 Discussion all in favor say aye any opposed 762 00:36:35,559 --> 00:36:39,159 Item G is to consider recommending an ordinance 763 00:36:39,159 --> 00:36:42,239 establishing the schedule of rates for wastewater service 764 00:36:42,760 --> 00:36:46,360 Providing for a repealer providing for a severability 765 00:36:46,360 --> 00:36:48,480 clause and providing for an effective date 766 00:36:51,159 --> 00:36:54,369 So, mr. Chairman and P members again no changes from what 767 00:36:54,369 --> 00:36:58,909 we previously discussed with you within the wastewater 768 00:36:58,909 --> 00:36:59,280 rates 769 00:36:59,800 --> 00:37:02,369 Certainly if you have any specific questions about any of 770 00:37:02,369 --> 00:37:05,519 the recommendations here, I'd be happy to go through that 771 00:37:06,199 --> 00:37:08,559 So there is a change 772 00:37:09,440 --> 00:37:12,110 That we had recommended I'll just kind of make sure that I 773 00:37:12,110 --> 00:37:14,679 point that out on the newcomer rates 774 00:37:14,679 --> 00:37:18,389 We are proposing to decrease that to 5400 gallons from 6, 775 00:37:18,389 --> 00:37:19,360 000 gallons 776 00:37:19,840 --> 00:37:21,840 based on a 10-year review of 777 00:37:22,719 --> 00:37:25,380 Where that usage has been and so that'll be that's part of 778 00:37:25,380 --> 00:37:26,360 our condition 779 00:37:26,360 --> 00:37:28,579 I believe that we talked to you about that the last time we 780 00:37:28,579 --> 00:37:29,039 were here 781 00:37:35,239 --> 00:37:37,239 Questions 782 00:37:39,840 --> 00:37:43,039 No, is there a motion then on item G 783 00:37:46,400 --> 00:37:48,400 Motion and second discussion 784 00:37:49,159 --> 00:37:51,159 All in favor say aye 785 00:37:51,519 --> 00:37:53,519 Any opposed? 786 00:37:53,599 --> 00:37:57,079 Okay, item H is consider recommending an ordinance 787 00:37:57,840 --> 00:38:00,010 establishing the schedule of rates for miscellaneous 788 00:38:00,010 --> 00:38:00,519 service 789 00:38:01,159 --> 00:38:04,309 Providing for repealer providing for a severability clause 790 00:38:04,309 --> 00:38:06,699 and providing for an effective date 791 00:38:08,000 --> 00:38:10,429 Mr. Chairman, I don't have a presentation on this 792 00:38:10,429 --> 00:38:11,400 particular one 793 00:38:12,079 --> 00:38:15,130 But I do want to just remind the PB that based on our 794 00:38:15,130 --> 00:38:16,880 presentation a couple weeks ago 795 00:38:17,800 --> 00:38:21,400 We are recommending within the miscellaneous rate ordin 796 00:38:21,400 --> 00:38:22,300 ances ordinance 797 00:38:22,960 --> 00:38:28,480 to reduce by 50% the residential delinquent service fee 798 00:38:28,480 --> 00:38:29,320 from 799 00:38:29,719 --> 00:38:33,519 $46 to $23 and the residential reconnection charge 800 00:38:34,159 --> 00:38:37,159 For same-day service is decreased from 61 801 00:38:37,679 --> 00:38:42,630 To $30 and that's primarily due to some of the or to the AM 802 00:38:42,630 --> 00:38:42,800 I 803 00:38:43,519 --> 00:38:47,000 Capabilities that we now have so other than that 804 00:38:47,000 --> 00:38:49,329 Those are the only changes that we're recommending within 805 00:38:49,329 --> 00:38:52,239 this miscellaneous rate ordinance to be happy to answer any 806 00:38:52,239 --> 00:38:53,280 questions that you may have 807 00:38:55,599 --> 00:38:59,429 So those are due to more effective way of us being able to 808 00:38:59,429 --> 00:39:02,119 connect and disconnect that's recognition of 809 00:39:02,559 --> 00:39:05,469 A reduction in the cost of providing that service or doing 810 00:39:05,469 --> 00:39:07,000 that particular service 811 00:39:07,679 --> 00:39:09,679 Okay 812 00:39:10,199 --> 00:39:12,960 Okay, any other questions 813 00:39:15,079 --> 00:39:17,519 Not if there's a motion then on item H 814 00:39:18,519 --> 00:39:20,519 move to approve 815 00:39:21,119 --> 00:39:24,179 Second we have a motion and second any discussion 816 00:39:25,159 --> 00:39:27,159 All in favor say aye 817 00:39:27,440 --> 00:39:29,739 Any opposed same side 818 00:39:30,679 --> 00:39:31,960 Okay 819 00:39:31,960 --> 00:39:34,440 Thank you Tony for taking us through those. Thank you 820 00:39:36,199 --> 00:39:38,800 Item I is ACM update 821 00:39:39,679 --> 00:39:42,559 Mr. Chairman members of the board as you know 822 00:39:42,559 --> 00:39:45,519 We've experienced a record heat the last number of the last 823 00:39:45,519 --> 00:39:47,519 week and continue to do so this week 824 00:39:47,519 --> 00:39:50,429 And so we thought it would be good idea to have someone 825 00:39:50,429 --> 00:39:51,119 from DME 826 00:39:51,119 --> 00:39:53,800 So I've got Smith day here who can give the board 827 00:39:53,800 --> 00:39:56,539 Oh, I would like to give the board just a quick overview of 828 00:39:56,539 --> 00:39:58,239 how the energy center is doing 829 00:39:58,239 --> 00:40:00,110 Well the last number of days with the record heat we've 830 00:40:00,110 --> 00:40:01,199 experienced here in the area 831 00:40:03,960 --> 00:40:09,429 Good evening, I'm Smith day with DME. I'm the regulatory 832 00:40:09,429 --> 00:40:10,880 and risk division manager and 833 00:40:12,440 --> 00:40:17,070 As you can imagine this past week is as you've seen it you 834 00:40:17,070 --> 00:40:19,699 've seen it on the news and it felt that outside obviously 835 00:40:20,119 --> 00:40:22,119 record-breaking heat and 836 00:40:22,800 --> 00:40:26,530 It was it was the first week where the deck was operating 837 00:40:26,530 --> 00:40:29,099 at full steam coincidentally, so 838 00:40:31,000 --> 00:40:34,940 We've got a slew of data and numbers that have 839 00:40:35,800 --> 00:40:39,309 Fallen in as through the first week of our full operation 840 00:40:39,309 --> 00:40:40,059 of the deck 841 00:40:40,880 --> 00:40:42,880 Those numbers are being 842 00:40:43,000 --> 00:40:45,699 Crunched and obviously there's just having some of them 843 00:40:45,699 --> 00:40:46,980 yesterday and Saturday 844 00:40:47,480 --> 00:40:50,119 Friday and Thursday, there's no time to put those all 845 00:40:50,119 --> 00:40:52,880 together for you here, but this is just for some high-level 846 00:40:53,800 --> 00:40:55,800 information 847 00:40:56,280 --> 00:40:58,280 So Urquhart on I 848 00:40:58,719 --> 00:41:02,039 think as some of you may have heard last week on Thursday 849 00:41:02,039 --> 00:41:03,880 hit a all-time peak of 850 00:41:05,440 --> 00:41:07,440 73,000 megawatts and 851 00:41:07,559 --> 00:41:12,929 Also, coincidentally DME hit a all-time peak of 369 megawat 852 00:41:12,929 --> 00:41:14,159 ts last Thursday 853 00:41:15,159 --> 00:41:18,800 That smashed the previous record which was the previous day 854 00:41:18,800 --> 00:41:22,119 Wednesday was of 352 megawatts 855 00:41:23,079 --> 00:41:26,210 Absolutely smashed it and that compares to last year the 856 00:41:26,210 --> 00:41:27,480 last year's 857 00:41:28,159 --> 00:41:33,280 All all-time peak was total peak day was 350 megawatts 858 00:41:33,280 --> 00:41:38,139 So we've at went last Wednesday. We thought hey 352 859 00:41:38,599 --> 00:41:42,199 Wow, we broke broke last year pretty easily then Thursday 860 00:41:42,199 --> 00:41:42,480 came and 861 00:41:43,199 --> 00:41:45,199 Absolutely wrecked it 862 00:41:45,360 --> 00:41:47,360 yesterday was I 863 00:41:48,079 --> 00:41:50,940 Want to say yesterday was she yes, it was 864 00:41:51,559 --> 00:41:56,599 347 megawatts which is pretty incredible for an off-peak 865 00:41:56,599 --> 00:41:56,920 day 866 00:41:56,920 --> 00:42:00,519 Which is every Sunday is considered an off-peak day. So 867 00:42:00,519 --> 00:42:00,880 anyway 868 00:42:02,199 --> 00:42:04,360 on with the deck the deck had 869 00:42:05,559 --> 00:42:10,469 Previous to last week. There was some pipeline work being 870 00:42:10,469 --> 00:42:11,099 done and 871 00:42:11,639 --> 00:42:15,039 So that the pipeline company had to curtail some of the gas 872 00:42:15,760 --> 00:42:16,820 that 873 00:42:16,820 --> 00:42:19,829 The weather hadn't hit yet. So that was really no big 874 00:42:19,829 --> 00:42:21,300 effect there. So 875 00:42:22,039 --> 00:42:24,559 the gas came back on fully last week and 876 00:42:25,360 --> 00:42:29,079 The deck the engines were running running excellent 877 00:42:29,599 --> 00:42:32,639 They're running beautifully and they're performing and so 878 00:42:32,639 --> 00:42:34,900 they've been protecting us all week 879 00:42:36,360 --> 00:42:38,719 Against these high prices with some of which you've seen 880 00:42:38,719 --> 00:42:41,679 I don't know if you some of you may have the app on on your 881 00:42:41,679 --> 00:42:43,000 phone for ERCOT and 882 00:42:43,480 --> 00:42:47,360 They've been hitting in the 2000 3000 range sometimes for 883 00:42:47,360 --> 00:42:50,289 some hours mostly in the afternoon hours between one o' 884 00:42:50,289 --> 00:42:50,960 clock and seven 885 00:42:51,199 --> 00:42:53,480 Is when you'll see those extreme prices 886 00:42:54,360 --> 00:42:57,150 Coincides with the extreme heat go figure but that's 887 00:42:57,150 --> 00:43:00,480 exactly the way it works during those hours 888 00:43:00,480 --> 00:43:02,480 We've also seen our wind production 889 00:43:03,360 --> 00:43:05,360 Decrease you see that and 890 00:43:06,000 --> 00:43:08,000 That's a typical 891 00:43:08,840 --> 00:43:10,840 Situation as part of the country 892 00:43:10,880 --> 00:43:12,880 your western winds 893 00:43:12,880 --> 00:43:16,610 fall off and tremendous heat when high pressure sits over 894 00:43:16,610 --> 00:43:17,199 the state so 895 00:43:17,880 --> 00:43:19,880 that the wind dives 896 00:43:20,599 --> 00:43:25,320 the oppressive heat comes in the loads come up and then 897 00:43:25,840 --> 00:43:29,440 Scarcity pricing hits and that's that's when the decks 898 00:43:29,440 --> 00:43:32,400 jumped into action and and protect us. So 899 00:43:33,599 --> 00:43:34,960 in 900 00:43:34,960 --> 00:43:36,960 general 901 00:43:37,079 --> 00:43:39,409 Things are working. Well, those are the good things there 902 00:43:39,409 --> 00:43:41,960 haven't been without hiccups. I mean when you have an 903 00:43:44,199 --> 00:43:46,199 Enterprise like this like running a 904 00:43:46,679 --> 00:43:49,559 Tremendous plant like this. It has a few problems one of 905 00:43:49,559 --> 00:43:52,489 them being the gas. The other was there there was some tele 906 00:43:52,489 --> 00:43:52,760 metry 907 00:43:53,559 --> 00:43:56,610 Issues it was all worked around. They didn't cause any any 908 00:43:56,610 --> 00:43:59,360 operational problems. We still had the deck running 909 00:43:59,440 --> 00:44:02,449 It's just that's mostly tweaking on the computer systems 910 00:44:02,449 --> 00:44:05,559 that talk to ERCOT and they know there's just a few little 911 00:44:05,559 --> 00:44:06,440 things to iron out 912 00:44:06,440 --> 00:44:09,559 But nothing that's stopping us from running full full out 913 00:44:09,559 --> 00:44:10,400 full capacity 914 00:44:10,960 --> 00:44:12,440 so 915 00:44:12,440 --> 00:44:15,260 It's there. It's been running. I don't have a you know, 916 00:44:15,260 --> 00:44:18,360 like I said, I don't have a whole bunch of numbers to throw 917 00:44:18,360 --> 00:44:18,440 at 918 00:44:18,440 --> 00:44:20,769 Your crunch, but any general questions, I'll be happy to 919 00:44:20,769 --> 00:44:21,320 entertain 920 00:44:22,199 --> 00:44:25,059 You maybe can't answer this but I'm curious. Why would they 921 00:44:25,059 --> 00:44:28,320 do a pipeline inspection in July in Texas? 922 00:44:28,320 --> 00:44:31,920 That's like doing it in January in northern Minnesota. That 923 00:44:31,920 --> 00:44:35,519 doesn't really make a lot of we have the same question and 924 00:44:36,119 --> 00:44:40,550 There was an effort to and by the way that pipeline did not 925 00:44:40,550 --> 00:44:41,480 only affect 926 00:44:42,119 --> 00:44:44,119 DME it affected 927 00:44:44,559 --> 00:44:48,440 Other plants as well. Sure. So so because that plant and 928 00:44:48,440 --> 00:44:50,239 pipeline feeds multiple ones, but 929 00:44:52,920 --> 00:44:55,190 No one asked us the pipeline company had a 10-year 930 00:44:55,190 --> 00:44:58,960 compliance regulation they had to fulfill and 931 00:44:59,480 --> 00:45:02,260 It's from what we are understood. It was a federal 932 00:45:02,260 --> 00:45:03,119 regulation 933 00:45:04,599 --> 00:45:07,320 So there was reach out to the Public Utility Commission 934 00:45:07,320 --> 00:45:09,800 Railroad Commission and 935 00:45:11,280 --> 00:45:13,500 There wasn't a whole because it was federal there wasn't a 936 00:45:13,500 --> 00:45:15,679 whole lot that can be done about it. Unfortunately 937 00:45:16,519 --> 00:45:18,519 it worked out and 938 00:45:20,079 --> 00:45:22,559 There's there's a couple little things left for a couple 939 00:45:22,559 --> 00:45:23,039 hours 940 00:45:23,039 --> 00:45:26,090 But the big the big stuff's done and it really won't 941 00:45:26,090 --> 00:45:29,960 interfere with with us in that super peak range 942 00:45:29,960 --> 00:45:32,909 So it shouldn't be any issue from here on it. It's 943 00:45:32,909 --> 00:45:35,199 important. They inspect the pipeline. Yes 944 00:45:35,440 --> 00:45:39,039 That's very important. Yeah, and exactly. It's a compliance 945 00:45:39,039 --> 00:45:41,239 thing and and it's a tough deal 946 00:45:41,320 --> 00:45:43,119 because 947 00:45:43,119 --> 00:45:47,039 If the if the pipe has a leak and it's dangerous 948 00:45:48,559 --> 00:45:50,659 That's we've seen a lot of things in the news bad things 949 00:45:50,659 --> 00:45:51,480 can happen 950 00:45:51,480 --> 00:45:54,719 So you don't want that at this you just kind of want to to 951 00:45:54,719 --> 00:45:55,719 time it better 952 00:45:55,719 --> 00:45:59,500 Yeah, exactly what we'd like to see but we didn't actually 953 00:45:59,500 --> 00:46:03,000 get harmed by it. No, no ma'am or any other plants 954 00:46:03,000 --> 00:46:07,159 No, no ma'am. So so, you know, we'd just like to see better 955 00:46:07,159 --> 00:46:10,039 timing in the future and I think you may see 956 00:46:10,880 --> 00:46:12,280 from 957 00:46:12,280 --> 00:46:15,690 Being a regulatory person and having my ear out there. You 958 00:46:15,690 --> 00:46:16,199 may see some 959 00:46:17,159 --> 00:46:19,159 movement at the state legislature 960 00:46:19,480 --> 00:46:23,079 To try and make better coordination rules around what the 961 00:46:23,079 --> 00:46:24,840 pipes do and when they do things 962 00:46:25,519 --> 00:46:28,099 They usually don't do things in the winter because that's 963 00:46:28,099 --> 00:46:28,960 that's their 964 00:46:30,199 --> 00:46:32,199 Yeah 965 00:46:33,280 --> 00:46:37,000 Must have shoulders somewhere in there. Yeah, just some 966 00:46:37,000 --> 00:46:40,079 over some spots. Yeah, you would you would hope 967 00:46:40,159 --> 00:46:43,760 Well, that's that's a great report. I'm glad to hear 968 00:46:43,760 --> 00:46:45,039 everything's going well 969 00:46:49,519 --> 00:46:53,119 Thought about it as we you know as we see the peak demand 970 00:46:53,119 --> 00:46:53,460 for 971 00:46:54,559 --> 00:46:57,360 Urquhart, so so we actually saw the deck 972 00:46:58,679 --> 00:47:02,199 So was it running 24 hours or just turn it no sir 973 00:47:03,199 --> 00:47:07,849 It's it really came into play. I mean up until 11 o'clock 974 00:47:07,849 --> 00:47:09,239 noon on those days 975 00:47:10,280 --> 00:47:14,489 Things were fairly normal. And so it was the afternoon when 976 00:47:14,489 --> 00:47:17,539 when the spikes started happening 977 00:47:17,539 --> 00:47:21,420 So it you know, we have our dispatch price at its cost and 978 00:47:21,420 --> 00:47:25,480 when prices go above that cost and and those generally were 979 00:47:25,480 --> 00:47:25,960 from 980 00:47:26,239 --> 00:47:29,519 You know say noon to depending on the nights. I mean we had 981 00:47:29,519 --> 00:47:33,199 a night there was I think it was I think about 10 o'clock 982 00:47:33,199 --> 00:47:36,800 I looked in it was still 98 degrees. So yeah, it would be 983 00:47:36,800 --> 00:47:38,380 from noon to 10 some nights 984 00:47:39,760 --> 00:47:44,800 Today I think we've we've seen the things actually very 985 00:47:44,800 --> 00:47:47,400 tame overall you look at Urquhart and and 986 00:47:48,840 --> 00:47:52,679 This was a pretty big test and so far so far the entire 987 00:47:52,679 --> 00:47:55,000 Texas grid is passing 988 00:47:56,239 --> 00:48:01,150 so as as far as the in general the Texas grid goes we go 989 00:48:01,150 --> 00:48:01,760 because 990 00:48:02,559 --> 00:48:03,880 we're 991 00:48:03,880 --> 00:48:06,440 deeply integrated into it so 992 00:48:07,639 --> 00:48:11,000 It's it's all working pretty well. So let's 993 00:48:12,519 --> 00:48:15,559 Knock on stuff. We still got some hot days to go 994 00:48:19,880 --> 00:48:23,480 Gonna have a cool doms gonna be 98. Yeah break out the main 995 00:48:23,480 --> 00:48:25,320 coats. I'm here we come 996 00:48:36,239 --> 00:48:38,239 Nothing further to report 997 00:48:38,920 --> 00:48:40,920 All right 998 00:48:44,639 --> 00:48:46,840 Okay concluding items under section 999 00:48:47,280 --> 00:48:51,039 551.0 for to the Texas Open Meetings Act respond to inqu 1000 00:48:51,039 --> 00:48:55,000 iries from the Public Utilities Board or the public with 1001 00:48:55,719 --> 00:48:58,860 specific factual information or recitation of policy or 1002 00:48:59,719 --> 00:49:03,579 Accepted proposal to place a matter on the agenda for an 1003 00:49:03,579 --> 00:49:04,840 upcoming meeting 1004 00:49:06,639 --> 00:49:08,639 So do we have any requests for 1005 00:49:10,079 --> 00:49:12,440 agenda items for upcoming meetings 1006 00:49:16,599 --> 00:49:18,840 Seeing none hearing none 1007 00:49:20,440 --> 00:49:23,480 All right, do we have a motion to adjourn 1008 00:49:26,679 --> 00:49:30,280 We have a motion is there a second second from Allen all in 1009 00:49:30,280 --> 00:49:31,719 favor say aye 1010 00:49:34,000 --> 00:49:36,000 Thank you 1011 00:49:37,239 --> 00:49:39,239 You