WEBVTT 00:00:00.000 --> 00:00:04.259 23rd 2018 public utility board meeting to order 00:00:05.440 --> 00:00:07.820 First on our agenda is a work session 00:00:08.599 --> 00:00:12.199 To receive report and hold a discussion regarding the solid 00:00:12.199 --> 00:00:13.500 waste fiscal year 00:00:14.320 --> 00:00:16.839 2018-19 operating and capital budget 00:00:17.600 --> 00:00:21.199 Good afternoon board members. Mr. Chairman. My name is Nick 00:00:21.199 --> 00:00:23.280 Vincent utility business manager for the city of Denton 00:00:23.600 --> 00:00:26.480 I have a two-part presentation for you today the first part 00:00:26.480 --> 00:00:27.359 of the presentation 00:00:27.359 --> 00:00:30.960 I will be presenting the proposed 18 19 solid waste 00:00:30.960 --> 00:00:31.780 operating budget 00:00:31.780 --> 00:00:34.039 But then the second part of the presentation Ethan Cox 00:00:34.039 --> 00:00:36.689 directors always will come up and give his departmental 00:00:36.689 --> 00:00:37.119 presentation 00:00:37.759 --> 00:00:39.689 Please feel free to stop me if you have any questions 00:00:39.689 --> 00:00:40.539 throughout the presentation 00:00:40.539 --> 00:00:42.950 I'll be happy to answer them. If not, I will have staff 00:00:42.950 --> 00:00:44.880 come up here and help me out answer the question 00:00:46.000 --> 00:00:49.359 The cost of service study was presented to pub on July 9th 00:00:50.119 --> 00:00:53.719 This study did indicate several service categories and 00:00:53.719 --> 00:00:55.399 rates that were over and under recovering 00:00:55.960 --> 00:00:58.079 Staff will continue to work with new gen 00:00:59.100 --> 00:01:02.179 To work towards a rate correction strategy. Once that's 00:01:02.179 --> 00:01:04.140 completed. We will bring that forward to the pub 00:01:05.079 --> 00:01:08.680 The operational review is also presented to the pub on June 00:01:08.680 --> 00:01:09.079 25th 00:01:09.760 --> 00:01:11.680 the operational review 00:01:11.680 --> 00:01:15.079 We did receive recommendation from the pub to discontinue 00:01:15.719 --> 00:01:18.769 Operation of the building materials recovery and bubble 00:01:18.769 --> 00:01:22.560 processing operations following that meeting on June 26 00:01:22.560 --> 00:01:23.439 City Council 00:01:23.920 --> 00:01:26.750 Did give staff direction to put a temporary hold on those 00:01:26.750 --> 00:01:29.790 operations until the operational review can go to the 00:01:29.790 --> 00:01:31.000 community on environment 00:01:32.359 --> 00:01:34.159 Staff will be working in next month or two to take it to 00:01:34.159 --> 00:01:35.120 the committee 00:01:35.959 --> 00:01:40.030 Once formal recommendation is received from them the PB and 00:01:40.030 --> 00:01:42.200 council will come back to you. Of course 00:01:42.599 --> 00:01:45.780 We are presenting the budget today as a placeholder budget 00:01:46.120 --> 00:01:49.519 We will be coming back by February 1st of 2019 00:01:49.680 --> 00:01:52.459 With a modified budget based on recommendations from the 00:01:52.459 --> 00:01:54.159 committee the pub and the council 00:01:55.159 --> 00:01:57.159 regarding the operational review 00:01:58.560 --> 00:02:01.760 The fund does maintain a debt coverage ratio greater than 1 00:02:01.760 --> 00:02:05.359 .25 the target in the current proposed budget as it is today 00:02:05.560 --> 00:02:09.000 In each of the future years and the fund balance does 00:02:09.599 --> 00:02:12.569 maintain a fund balance above the targets of 14 and 18 00:02:12.569 --> 00:02:13.240 percent and 00:02:13.479 --> 00:02:15.889 Then staff has used a multi-year financial planning to 00:02:15.889 --> 00:02:18.389 minimize rate increases and I'd like to point out this 00:02:18.389 --> 00:02:19.879 budget actually does not have any 00:02:19.879 --> 00:02:22.530 Rate increases for residential commercial customers. Oh, 00:02:22.530 --> 00:02:23.400 excuse me 00:02:24.199 --> 00:02:26.939 Let me actually flip forward. Sorry about that. Let me 00:02:26.939 --> 00:02:29.560 actually recover this really quick since I forgot 00:02:30.400 --> 00:02:34.000 Presents a slide here. So the cost of service was in July 9 00:02:34.000 --> 00:02:35.800 th to the pub. You can see that here 00:02:36.479 --> 00:02:40.080 It did identify some service categories and rates that were 00:02:40.080 --> 00:02:41.400 under and over recovering 00:02:41.599 --> 00:02:45.629 the operational review was presented to PB on June 25th as 00:02:45.629 --> 00:02:47.840 I stated the PB gave direction to 00:02:48.680 --> 00:02:50.990 discontinue the BMR operation to building materials 00:02:50.990 --> 00:02:51.599 recovery 00:02:52.360 --> 00:02:55.960 And the rubble process in operation City Council actually 00:02:55.960 --> 00:02:58.080 directed staff to put a temporary hold on those operations 00:02:58.280 --> 00:03:00.360 Until we can take the operational review to the committee 00:03:00.360 --> 00:03:01.000 on environment 00:03:01.520 --> 00:03:03.979 We will be visiting with them hopefully here in the next 00:03:03.979 --> 00:03:06.699 month or so and we'll bring that back to you when we have 00:03:06.699 --> 00:03:07.199 the formal 00:03:07.360 --> 00:03:08.800 recommendation 00:03:08.800 --> 00:03:11.099 The fund does maintain like I said a duck coverage ratio 00:03:11.099 --> 00:03:13.770 greater than 1.25 percent the current fiscal year in all 00:03:13.770 --> 00:03:14.639 the future years 00:03:14.639 --> 00:03:18.240 And then the fund balance is above the target of 14 to 18 00:03:18.240 --> 00:03:18.719 percent 00:03:19.919 --> 00:03:21.919 flip here 00:03:22.240 --> 00:03:25.009 Operational expenses are cost containment strategies that 00:03:25.009 --> 00:03:26.719 is included in the budget in front of you today 00:03:27.199 --> 00:03:29.990 Staff has been working to realign business units to improve 00:03:29.990 --> 00:03:33.520 financial reporting of the different operations to landfill 00:03:34.080 --> 00:03:36.810 We are proposing a zero base budget for travel training 00:03:36.810 --> 00:03:38.520 outside contract services 00:03:39.360 --> 00:03:41.439 And we will be working to implement the staffing plans from 00:03:41.439 --> 00:03:42.659 the operational review 00:03:43.000 --> 00:03:45.909 Once staff presents those to the committee on environment 00:03:45.909 --> 00:03:47.520 the pub and the City Council 00:03:48.199 --> 00:03:52.030 Equipment of vehicles staff has created new procedures in- 00:03:52.030 --> 00:03:53.439 house to evaluate 00:03:53.919 --> 00:03:56.430 Equipment utilization the maintenance cost of the equipment 00:03:56.430 --> 00:03:59.240 and when is the appropriate time to sell it and replace it 00:04:00.039 --> 00:04:02.039 capital improvement program 00:04:02.120 --> 00:04:03.520 our plan 00:04:03.520 --> 00:04:06.340 We are going to continue to use business case analysis to 00:04:06.340 --> 00:04:09.330 evaluate a project's feasibility the cost and the benefit 00:04:09.330 --> 00:04:10.319 of it moving forward 00:04:10.960 --> 00:04:13.870 And we this fund is reducing its reliance on debt services 00:04:13.870 --> 00:04:17.399 the primary funding source for equipment and vehicles 00:04:20.920 --> 00:04:23.079 The future risk and mitigations of this fun 00:04:24.560 --> 00:04:27.170 Currently staff is working with blue ridge services that PB 00:04:27.170 --> 00:04:29.600 had a presentation from on July 9th 00:04:32.040 --> 00:04:35.709 To develop a market study and actually it's not new gen. It 00:04:35.709 --> 00:04:36.379 's a blue ridge 00:04:36.379 --> 00:04:38.930 I think I suppose that blue ridge services to complete a 00:04:38.930 --> 00:04:41.639 market study to assess the landfill fees 00:04:42.079 --> 00:04:45.029 This study should be completed in this month once it is 00:04:45.029 --> 00:04:45.560 completed 00:04:46.040 --> 00:04:48.589 It'll benchmark those fees of surrounding facilities around 00:04:48.589 --> 00:04:51.850 the Metroplex. We will bring that forward to the pub once 00:04:51.850 --> 00:04:52.819 it is complete 00:04:53.439 --> 00:04:56.500 Market conditions for recycling we have seen in an increase 00:04:56.500 --> 00:04:59.800 in contamination the recycling streams in the community 00:04:59.920 --> 00:05:02.339 We will continue to partner with the school districts and 00:05:02.339 --> 00:05:06.120 the community to increase commercial recycling residential 00:05:06.120 --> 00:05:07.860 recycling to decrease the amount of contamination 00:05:09.240 --> 00:05:12.839 Changes to regulatory compliance the current fiscal year 00:05:12.839 --> 00:05:15.000 budget 19 as it sets today 00:05:15.600 --> 00:05:18.379 Is proposing to fully fund the yearly contribution to the 00:05:18.379 --> 00:05:21.410 closure fund for the landfill and I'll point that out to 00:05:21.410 --> 00:05:22.439 you here in just a second 00:05:22.439 --> 00:05:24.439 on a couple slides down 00:05:24.839 --> 00:05:27.089 Environmental safety risk we want to continue to build upon 00:05:27.089 --> 00:05:28.240 regulatory compliance 00:05:28.800 --> 00:05:31.819 Processes and then we are in the process of implementing a 00:05:31.819 --> 00:05:34.339 robust safety program and solid waste fund based on the 00:05:34.339 --> 00:05:36.220 operational review from blue ridge services 00:05:38.920 --> 00:05:42.199 This is the five-year pro forma as I stated before this is 00:05:42.199 --> 00:05:44.120 we're proposing this is a placeholder budget 00:05:44.519 --> 00:05:47.600 We will come back to the PB by February 1st of 2019 00:05:48.399 --> 00:05:50.490 Once we have time to visit with the CoE committee on 00:05:50.490 --> 00:05:53.360 environment the PB and council further regarding the 00:05:53.360 --> 00:05:54.360 operation review 00:05:54.360 --> 00:05:57.370 I do want to point out that this budget also includes the 00:05:57.370 --> 00:06:00.279 BMR the building materials recovery operation and the rub 00:06:00.279 --> 00:06:00.439 ble 00:06:00.560 --> 00:06:02.560 Processing operation are still in this budget 00:06:02.720 --> 00:06:05.129 So when we come back to you in February if the direction is 00:06:05.129 --> 00:06:07.670 to discontinue those operations, they will be removed from 00:06:07.670 --> 00:06:08.079 the budget 00:06:08.480 --> 00:06:10.480 But they are not removed right now 00:06:10.560 --> 00:06:14.629 As you can see here and the proposed 2019 budget which is 00:06:14.629 --> 00:06:15.560 here in this column 00:06:15.560 --> 00:06:17.860 We're proposing thirty four point eight million dollars in 00:06:17.860 --> 00:06:20.920 revenues about thirty four point eight million dollars in 00:06:20.920 --> 00:06:21.759 expenditures 00:06:22.319 --> 00:06:25.230 We are proposing to draw down the fund balance about three 00:06:25.230 --> 00:06:26.920 hundred forty nine thousand dollars 00:06:27.600 --> 00:06:29.750 And as you can see down here, we're proposing no rate 00:06:29.750 --> 00:06:33.240 increases for residential customers or commercial customers 00:06:34.240 --> 00:06:37.050 The fund balance you can see it down here. It's eight point 00:06:37.050 --> 00:06:38.319 two million 00:06:39.000 --> 00:06:41.660 Then the target of four point eight to six point two 00:06:41.660 --> 00:06:44.300 I do want to point out the fund balance does go from eight 00:06:44.300 --> 00:06:46.319 point two million to eighteen million 00:06:47.120 --> 00:06:49.660 Staff will be recommended to use this fund balance to 00:06:49.660 --> 00:06:52.269 implement the rate correction strategy. Once it is 00:06:52.269 --> 00:06:53.519 completed with NUGEN 00:06:54.240 --> 00:06:56.329 We'll be able to use that moving forward. So it is a 00:06:56.329 --> 00:06:57.480 positive thing for this fund 00:06:58.160 --> 00:07:01.319 the debt coverage ratio as I pointed out earlier is 00:07:02.360 --> 00:07:06.970 one point three four in FY 2019 and it does increase to two 00:07:06.970 --> 00:07:08.519 point nine five in the future years 00:07:08.680 --> 00:07:11.319 So there's way above the one point five to five target 00:07:11.319 --> 00:07:13.800 quick question on that. Yes, sir 00:07:14.800 --> 00:07:16.800 so 00:07:17.439 --> 00:07:21.379 Work capital plus operating reserves at those levels 00:07:22.279 --> 00:07:24.279 but that does include 00:07:24.639 --> 00:07:26.639 all the 00:07:27.920 --> 00:07:31.240 Expenses offset by some revenue, of course on the 00:07:35.839 --> 00:07:38.879 The BMG or the BMR 00:07:40.800 --> 00:07:41.600 That's correct 00:07:41.600 --> 00:07:45.199 So there are some revenues in this budget for the BMR some 00:07:45.199 --> 00:07:47.759 material cells commodities that they sort through 00:07:48.120 --> 00:07:50.620 And the expenditures are also in here too for both 00:07:50.620 --> 00:07:54.279 operations for the BMR and the rubble process and operation 00:07:54.480 --> 00:07:56.610 There's not much revenue in here for the rubble process and 00:07:56.610 --> 00:07:59.069 operation more expenditures than revenues, but both of them 00:07:59.069 --> 00:07:59.480 are in here 00:08:00.920 --> 00:08:04.680 So these numbers are good change depending upon what we 00:08:04.680 --> 00:08:06.740 what is decided in February 00:08:06.740 --> 00:08:08.829 That is correct once staff has time to visit with the 00:08:08.829 --> 00:08:09.560 Committee on Environment 00:08:10.600 --> 00:08:13.389 Pb further discussions and further discussion with council 00:08:13.389 --> 00:08:14.959 these these numbers could change 00:08:14.959 --> 00:08:18.269 Okay, I think the other thing to point out is you can see 00:08:18.269 --> 00:08:20.560 the impact in the out years of the debt service 00:08:20.560 --> 00:08:23.660 Yeah, that's that's great. That's really leading to the 00:08:23.660 --> 00:08:26.459 reserves being higher and giving us the ability to adjust 00:08:26.459 --> 00:08:27.399 funds on the 00:08:27.879 --> 00:08:30.579 Over the next few years and not really have an adverse 00:08:30.579 --> 00:08:31.800 impact in this fund 00:08:31.800 --> 00:08:34.200 So it's a good position to be in right now. We just didn't 00:08:34.200 --> 00:08:35.720 feel comfortable reducing 00:08:36.519 --> 00:08:38.830 Rates any further until we knew what the outcome of some of 00:08:38.830 --> 00:08:40.759 these other programs is gonna bring. Okay 00:08:42.840 --> 00:08:45.039 Any more questions in this slide I'll move on 00:08:46.840 --> 00:08:49.750 These are the resources so the revenues of the solid waste 00:08:49.750 --> 00:08:49.980 fund 00:08:49.980 --> 00:08:52.240 I'm gonna want to point a few things out here and the 00:08:52.240 --> 00:08:55.419 adopted 18 budget as you can see here in this column 00:08:55.559 --> 00:08:58.480 We had thirty nine point three million dollars in revenues 00:08:58.840 --> 00:09:01.899 We are estimating that to be thirty four point nine million 00:09:01.899 --> 00:09:03.039 finishing the year 00:09:03.039 --> 00:09:05.440 And the reason behind that is that we're removing the 00:09:05.440 --> 00:09:08.850 landfill mining operation revenues that were forecasted in 00:09:08.850 --> 00:09:11.799 the public sales in the city's natural gas station 00:09:12.440 --> 00:09:14.950 Moving forward the proposed budget, of course, we're not 00:09:14.950 --> 00:09:17.350 including those revenues and the projections. We're 00:09:17.350 --> 00:09:19.259 projecting thirty four point eight million 00:09:20.000 --> 00:09:22.679 Do want to point out here on the transfers in this transfer 00:09:22.679 --> 00:09:26.100 in as a transfer into from the salt from the general fund 00:09:26.120 --> 00:09:29.720 To solid waste to fund the building lease for 651 Mayhill 00:09:29.720 --> 00:09:32.820 if you remember that's where materials management and 00:09:32.820 --> 00:09:34.440 traffic will be relocating to 00:09:34.919 --> 00:09:38.049 And the use of the reserves that that's in part because we 00:09:38.049 --> 00:09:41.159 chose to reduce the rates for residential because we 00:09:41.759 --> 00:09:43.039 Yeah, so 00:09:43.039 --> 00:09:45.879 We can point that up here if you see the residential 00:09:46.360 --> 00:09:49.100 Revenue was six point two million projected in eighteen 00:09:49.100 --> 00:09:51.159 projected goes to five point six 00:09:51.399 --> 00:09:53.350 Same thing with residential recycling and that is 00:09:53.350 --> 00:09:55.440 associated with twelve percent rate decrease 00:09:56.120 --> 00:09:59.169 Yeah, so we're projecting to use reserves in the 2019 00:09:59.169 --> 00:10:01.289 budget but moving forward we won't be drawing on the 00:10:01.289 --> 00:10:01.720 reserves 00:10:02.159 --> 00:10:04.500 And we knew that at the time we made that decision. That's 00:10:04.500 --> 00:10:04.759 great 00:10:07.120 --> 00:10:09.279 These are the expenditures by categories 00:10:09.799 --> 00:10:13.399 As Todd had pointed out earlier the debt service is 00:10:13.399 --> 00:10:16.850 decreasing in 2018 the adopted budget was nine point six 00:10:16.850 --> 00:10:17.279 million 00:10:17.279 --> 00:10:20.019 It is coming down about seven hundred thousand eight point 00:10:20.019 --> 00:10:22.440 nine million in the 2019 proposed budget 00:10:24.039 --> 00:10:26.370 So we're proposing thirty four point eight million in 00:10:26.370 --> 00:10:27.059 expenditures 00:10:30.960 --> 00:10:33.500 This is could you go back I have one more question and I 00:10:33.500 --> 00:10:35.720 think I know the answer but I want to hear it from you 00:10:36.600 --> 00:10:39.649 We look like we're our estimates for this year first 00:10:39.649 --> 00:10:42.440 personal services is ten point five million 00:10:42.440 --> 00:10:45.480 It's going up to eleven point two, but we're cutting ten 00:10:45.480 --> 00:10:45.940 people 00:10:46.759 --> 00:10:48.759 so right so 00:10:49.600 --> 00:10:52.769 In the 2018 budget and currently right now there's 20 vac 00:10:52.769 --> 00:10:53.919 ancies in the solid waste fund 00:10:54.440 --> 00:10:56.529 We are going to be proposing to refill some of those vac 00:10:56.529 --> 00:10:59.879 ancies in 2019 to address some of the maintenance issues 00:10:59.879 --> 00:11:02.960 We've been seen and to implement the safety program and the 00:11:02.960 --> 00:11:06.120 solid waste fund. So that is the increase you're seeing 00:11:06.120 --> 00:11:08.870 So we're projecting them to stay vacant pretty much through 00:11:08.870 --> 00:11:11.370 the rest of this year and then we propose to fill them in 00:11:11.370 --> 00:11:11.960 next year 00:11:11.960 --> 00:11:15.139 That's what I thought. I just want to make sure thank you. 00:11:15.139 --> 00:11:17.399 So so when we have FTEs, we're looking at 00:11:21.559 --> 00:11:25.309 That's correct. Um, so the budgeted I think this is what 00:11:25.309 --> 00:11:27.940 you're asking them in the budget at 18 adopted budget 00:11:28.080 --> 00:11:30.889 This would be fully staffed here. So everybody being 00:11:30.889 --> 00:11:32.440 employed eleven point six million 00:11:32.519 --> 00:11:35.500 We're projecting some vacancies and some salary savings in 00:11:35.500 --> 00:11:38.460 the estimate and those will be filled. That's correct. We 00:11:38.460 --> 00:11:39.279 're anticipating filling those 00:11:39.279 --> 00:11:41.279 That's correct. Thank you. Yeah 00:11:47.240 --> 00:11:49.889 One other thing that may not be apparent up here we are 00:11:49.889 --> 00:11:53.399 transitioning away from contracted temporary labor and then 00:11:53.399 --> 00:11:54.639 hiring our own staff 00:11:54.639 --> 00:11:56.759 And so that's one of the reasons why we wanted to maintain 00:11:56.759 --> 00:11:57.759 some of those vacancies 00:11:58.120 --> 00:12:00.450 As a matter of fact, we're starting to post some of those 00:12:00.450 --> 00:12:01.720 positions on the street 00:12:01.960 --> 00:12:04.179 we just feel like it's a better opportunity for us to grow 00:12:04.179 --> 00:12:05.740 our own talent and have kind of a 00:12:06.120 --> 00:12:08.360 Some bench strength to draw from in the future as we 00:12:08.360 --> 00:12:11.029 develop our own staff versus contracting out on a 00:12:11.029 --> 00:12:12.000 consistent basis 00:12:12.000 --> 00:12:15.340 So in 18 19, you see some of that kind of kicking in there 00:12:18.240 --> 00:12:20.129 All right, any more questions on the expenditures I'll be 00:12:20.129 --> 00:12:24.399 happy to answer them or Ethan will come back up here 00:12:25.360 --> 00:12:28.399 All right. This is the solid waste materials forecast table 00:12:28.799 --> 00:12:31.399 We are projecting about a two point four percent growth in 00:12:31.399 --> 00:12:34.320 the residential customers. You can see that number 00:12:34.919 --> 00:12:36.679 Right here on your screen 00:12:36.679 --> 00:12:39.090 We're projecting about a one point five eight percent 00:12:39.090 --> 00:12:41.600 growth in the front load side load customers commercial 00:12:41.600 --> 00:12:42.200 customers 00:12:42.799 --> 00:12:45.250 We are projecting a little bit more for roll-off customers 00:12:45.250 --> 00:12:47.759 based on the construction around the community about seven 00:12:47.759 --> 00:12:48.759 point one six percent 00:12:49.759 --> 00:12:52.320 landfill wholesale customer tons were just increasing a 00:12:52.320 --> 00:12:53.720 point two five percent 00:12:53.720 --> 00:12:56.240 So we're projecting for it to increase and landfill retail 00:12:56.240 --> 00:12:58.629 tons based on tonnage coming to the gate about an eight 00:12:58.629 --> 00:13:00.320 point four eight percent increase 00:13:02.879 --> 00:13:06.480 Quite a bit of increase that is coming in the game if you 00:13:06.480 --> 00:13:06.720 look at 00:13:07.919 --> 00:13:09.919 2015 to 19 that's 00:13:12.799 --> 00:13:14.799 31 00:13:15.799 --> 00:13:17.799 But you're actually seeing that 00:13:18.919 --> 00:13:20.919 But you're saying that I mean that's 00:13:21.399 --> 00:13:24.399 18 that's real numbers and some of this increase here 00:13:24.399 --> 00:13:26.929 I like to think from being it's always previously before my 00:13:26.929 --> 00:13:27.759 current position 00:13:28.600 --> 00:13:30.740 Is due to people commuting to them, you know 00:13:30.740 --> 00:13:33.179 Louisville or to the Metroplex of the other facilities must 00:13:33.179 --> 00:13:35.649 kind of being closer with the traffic and the amount of 00:13:35.649 --> 00:13:36.360 time it takes to 00:13:36.360 --> 00:13:38.000 travel there 00:13:38.000 --> 00:13:41.360 So, you know the population increasing around the community 00:13:43.639 --> 00:13:45.639 I 00:13:48.039 --> 00:13:50.779 Okay, these are the next steps so as I stated earlier this 00:13:50.779 --> 00:13:52.799 is a work session item 00:13:52.799 --> 00:13:54.919 We actually have another item on here for individual 00:13:54.919 --> 00:13:55.480 consideration 00:13:55.559 --> 00:13:58.700 Well, we will be asking the pub to adopt the budget is in 00:13:58.700 --> 00:14:01.279 front of you today as a placeholder budget 00:14:01.600 --> 00:14:04.120 Once staff has time to visit with the community environment 00:14:04.120 --> 00:14:06.759 the P being counsel further in the operational review 00:14:07.080 --> 00:14:10.259 We will come back by February 1st of next year of 2019 00:14:12.960 --> 00:14:15.279 Let's see counsel is scheduled to adopt the solid waste and 00:14:15.279 --> 00:14:18.240 operating budget capital budget 00:14:19.120 --> 00:14:23.080 by September 18 2018 actually on September 18 2018 00:14:23.600 --> 00:14:25.450 As I stated earlier, there are no residential rate 00:14:25.450 --> 00:14:27.519 increases or commercial increases in here 00:14:27.600 --> 00:14:31.350 We are proposing to increase the wholesale rate from $23 a 00:14:31.350 --> 00:14:32.679 ton to 2450 00:14:33.720 --> 00:14:37.320 And then staff will bring the FY 2018 solid rate ordinance 00:14:37.320 --> 00:14:40.200 to the pub during August or formal approval 00:14:40.240 --> 00:14:42.240 So you'll be seeing that here in the next month 00:14:43.120 --> 00:14:44.840 That 00:14:44.840 --> 00:14:46.970 Concludes the financial part of the presentation Ethan Cox 00:14:46.970 --> 00:14:48.840 the director will come up here for the next part of the 00:14:48.840 --> 00:14:49.440 presentation 00:14:50.159 --> 00:14:52.320 If you have any questions for me, I'll stand for him. 00:14:52.320 --> 00:14:54.519 Otherwise, he will come up. Thank you 00:15:04.279 --> 00:15:05.519 Thank you Nick 00:15:05.519 --> 00:15:07.519 Ethan Cox director of solid waste for the city 00:15:08.240 --> 00:15:10.320 Just a few brief presentation a few brief slides for you 00:15:10.320 --> 00:15:11.600 here in the presentation 00:15:12.360 --> 00:15:14.600 a lot of this we've already kind of covered either 00:15:15.120 --> 00:15:17.639 earlier in the presentation or prior presentations 00:15:17.639 --> 00:15:19.549 But just kind of hit the highlights in terms of 00:15:19.549 --> 00:15:22.240 accomplishments. We talked about the 12% rate reduction for 00:15:22.240 --> 00:15:23.360 our residential customers 00:15:23.919 --> 00:15:26.440 Nick also highlighted our restructured capital plan 00:15:26.440 --> 00:15:30.159 I want to point out that's due to a significant amount of 00:15:30.159 --> 00:15:31.559 work and effort by not just our 00:15:31.960 --> 00:15:34.120 Managers, but also our financial staff Nick 00:15:34.639 --> 00:15:36.039 Tina Lee 00:15:36.039 --> 00:15:38.919 Rodriguez everyone that's kind of contributed to this over 00:15:38.919 --> 00:15:40.120 the last several months 00:15:40.120 --> 00:15:42.860 We started this process about 14 months ago. So it's been 00:15:42.860 --> 00:15:44.919 like the longest budget process known to man 00:15:45.799 --> 00:15:48.659 But I think we've come out the other side relatively unsc 00:15:48.659 --> 00:15:51.399 athed during that process. We did a lot of business case 00:15:51.399 --> 00:15:52.080 analysis 00:15:52.320 --> 00:15:54.970 We have a few of those up here landfill mining the CNG fuel 00:15:54.970 --> 00:15:57.980 ing station the liquid waste disposal operation 00:15:58.480 --> 00:16:00.889 There's some real numbers associated with those and I think 00:16:00.889 --> 00:16:03.320 that leads to where you're seeing some of the improved 00:16:03.799 --> 00:16:06.710 Outlook over the next five years some of our goals for 00:16:06.710 --> 00:16:08.360 fifth fiscal year 18 19 00:16:08.360 --> 00:16:10.440 We do want to implement some of the recommendations from 00:16:10.440 --> 00:16:11.960 the rate study as Nick alluded to 00:16:12.360 --> 00:16:14.990 We do have some audit recommendations from last fall that 00:16:14.990 --> 00:16:15.919 we're continuing to work on 00:16:15.919 --> 00:16:18.600 We're gonna have a second round of an audit on our scale 00:16:18.600 --> 00:16:18.940 house 00:16:19.360 --> 00:16:21.509 That will be returning to the pub and the council on in the 00:16:21.509 --> 00:16:22.600 next couple of months 00:16:22.600 --> 00:16:25.250 And then we'll also be as Nick alluded to coming back 00:16:25.250 --> 00:16:28.659 through the CoE the pub and the council with the 00:16:28.659 --> 00:16:29.879 operational review 00:16:30.320 --> 00:16:32.139 One other big highlight that's going to be coming up in the 00:16:32.139 --> 00:16:33.519 next few months. Hopefully 00:16:34.039 --> 00:16:37.639 Is that the TCEQ will formally adopt our new operating 00:16:37.639 --> 00:16:38.759 permit 1590 B 00:16:38.759 --> 00:16:42.539 Which should give us 30 to 50 more years of landfill life 00:16:42.539 --> 00:16:43.139 capacity 00:16:46.240 --> 00:16:48.799 In terms of budget emphasis, you know what we always try to 00:16:48.799 --> 00:16:50.039 do is link this back to strategy 00:16:50.679 --> 00:16:52.470 For years solid waste has been really about pushing the 00:16:52.470 --> 00:16:55.559 envelope being innovative bringing on new programs 00:16:56.200 --> 00:16:58.039 Not that we don't feel like that's important 00:16:58.039 --> 00:17:00.429 But what we're shooting for is a more balanced strategy our 00:17:00.429 --> 00:17:00.960 goal 00:17:01.360 --> 00:17:03.759 The reason why we exist our purpose is to provide 00:17:03.759 --> 00:17:06.400 exceptional value to our customers our ratepayers 00:17:06.839 --> 00:17:09.390 We have a critical service for the community and we want to 00:17:09.390 --> 00:17:11.839 make sure that we're delivering the best value to them that 00:17:11.839 --> 00:17:12.160 we can 00:17:12.640 --> 00:17:15.039 So part of our focus in achieving that end is we want to 00:17:15.039 --> 00:17:17.319 have kind of a balanced approach if you will 00:17:17.440 --> 00:17:20.259 It's not just all about financial results. It's not just 00:17:20.259 --> 00:17:21.980 about you know efficiency 00:17:22.039 --> 00:17:24.130 We want to make sure that we're keeping our eye on all 00:17:24.130 --> 00:17:26.119 these things that you have up here on the board 00:17:26.119 --> 00:17:29.000 So it's financial it's being having an excellent operation 00:17:30.319 --> 00:17:32.720 Having that customer focus that it's not just about quality 00:17:32.720 --> 00:17:34.119 of service. It's about breath 00:17:34.119 --> 00:17:36.450 It's also about being available for them when they need us 00:17:36.450 --> 00:17:39.039 and then also from a sustainability standpoint 00:17:39.039 --> 00:17:41.250 It's not just being environmentally sustainable. It's 00:17:41.250 --> 00:17:43.740 financially sustainable and it's also making sure that what 00:17:43.740 --> 00:17:47.000 we're doing is in concert with what the community wants 00:17:47.480 --> 00:17:50.500 So our cost drivers and considerations customer growth and 00:17:50.500 --> 00:17:51.880 increased service demands 00:17:51.880 --> 00:17:54.200 I think that's par for the course for most city services 00:17:54.559 --> 00:17:57.569 But we do have some regulatory requirements if the state or 00:17:57.569 --> 00:18:00.569 the EPA has an unfunded mandate then that can certainly hit 00:18:00.569 --> 00:18:01.519 our bottom line 00:18:02.359 --> 00:18:04.579 We also have some market pressures that some of the other 00:18:04.579 --> 00:18:06.960 utilities are not necessarily exposed to 00:18:07.599 --> 00:18:10.039 As Nick alluded to we pointed to the the retail and the 00:18:10.039 --> 00:18:11.839 wholesale side of things 00:18:12.000 --> 00:18:14.700 Our landfill is a regional in regional competition with 00:18:14.700 --> 00:18:16.200 other landfills for revenue 00:18:16.619 --> 00:18:19.339 We also have the construction industry that also leads into 00:18:19.339 --> 00:18:21.720 some of the retail increase that you saw there 00:18:21.920 --> 00:18:24.390 That also hits our roll-off business. And so if 00:18:24.390 --> 00:18:27.920 construction dries up you can really see a pretty 00:18:28.440 --> 00:18:30.859 Kind of a depressed effect on our revenues 00:18:31.720 --> 00:18:34.930 Nick alluded to it earlier that we had 2.3 million in unrec 00:18:34.930 --> 00:18:37.420 ognized revenues from landfill mining and C&G sales 00:18:37.759 --> 00:18:39.759 And that was removed from this year's budget 00:18:41.480 --> 00:18:44.359 Turns of process improvements for 1718 we've hit most of 00:18:44.359 --> 00:18:47.359 these we do have the checks and balances for budget and CIP 00:18:47.359 --> 00:18:48.400 our managers 00:18:48.400 --> 00:18:51.519 Are all over their budgets now. They see reports monthly 00:18:51.519 --> 00:18:53.400 making sure that they're on track 00:18:53.839 --> 00:18:56.440 We question anomalies or issues when we see them 00:18:56.440 --> 00:18:59.319 I think everyone's much more attuned to where their budget 00:18:59.319 --> 00:19:02.250 is now. We also centralized project management contract 00:19:02.250 --> 00:19:02.799 management 00:19:03.519 --> 00:19:05.519 Purchasing kind of streamlined some of that 00:19:06.400 --> 00:19:09.200 Provided some more controls. We're still purchasing the 00:19:09.200 --> 00:19:10.079 things that we need 00:19:10.640 --> 00:19:13.400 But we have a little bit extra oversight on those things 00:19:14.079 --> 00:19:16.000 We're also continuing to work through improved processes 00:19:16.000 --> 00:19:17.960 and internal controls for our scale house 00:19:18.759 --> 00:19:20.730 That's essentially the touch point for all the customers 00:19:20.730 --> 00:19:23.670 entering our facility. I call it the nerve center of our 00:19:23.670 --> 00:19:24.079 operation 00:19:24.519 --> 00:19:26.640 All the cash handling happens there all the data that's 00:19:26.640 --> 00:19:28.440 recorded from a regulatory standpoint 00:19:29.079 --> 00:19:31.670 It cannot be a more critical operation than that one right 00:19:31.670 --> 00:19:34.960 there. And so it's getting a lot of attention right now 00:19:35.559 --> 00:19:37.250 Turns a future process improvements. We are going to be 00:19:37.250 --> 00:19:39.769 implementing some resource management processes. Some of 00:19:39.769 --> 00:19:40.960 those are already in play 00:19:41.200 --> 00:19:43.410 That's are we staffed effectively? Do we know what our 00:19:43.410 --> 00:19:46.109 needs are? How do we quantify those? What happens in a 00:19:46.109 --> 00:19:46.799 contingency? 00:19:47.559 --> 00:19:50.299 So all that's going to be a key focus area for us as is 00:19:50.299 --> 00:19:53.599 improved inventory systems for our carts our containers 00:19:54.240 --> 00:19:56.329 Making sure that we're only ordering those when we really 00:19:56.329 --> 00:19:58.039 need to and that we order it just in time 00:19:58.039 --> 00:20:01.069 And then as Nick mentioned earlier implementing a formal 00:20:01.069 --> 00:20:02.799 training and safety program 00:20:03.160 --> 00:20:05.880 It's just not something we want to mess around with we have 00:20:05.880 --> 00:20:09.000 big pieces of equipment that can do some real damage and 00:20:09.519 --> 00:20:11.829 We want to make sure that we're protecting our staff the 00:20:11.829 --> 00:20:14.319 people that we serve and also the city's assets 00:20:16.039 --> 00:20:17.839 In terms of cost containment 00:20:17.839 --> 00:20:19.920 one of the things that I want to emphasize and this is kind 00:20:19.920 --> 00:20:20.119 of the 00:20:20.359 --> 00:20:23.420 The fruit of all the the laborers for the staff over the 00:20:23.420 --> 00:20:24.880 last several months is 00:20:25.440 --> 00:20:29.039 Fiscal year 17 18 expenditures are about 11% under what we 00:20:29.039 --> 00:20:31.440 budgeted last year. That's about four point four million 00:20:31.440 --> 00:20:32.279 dollars in savings 00:20:32.839 --> 00:20:35.400 That's due in large part to the restructure capital plan 00:20:35.920 --> 00:20:38.230 Understand that this year's reduction you do see that debt 00:20:38.230 --> 00:20:39.400 service stepping down 00:20:39.400 --> 00:20:41.799 And so that's going to give us a lot of flexibility to 00:20:41.799 --> 00:20:44.740 implement that rate reduction or rate correction strategy 00:20:45.960 --> 00:20:49.190 it's also allowed for the residential rate decrease of 12% 00:20:49.190 --> 00:20:49.440 and 00:20:50.079 --> 00:20:53.279 Had we not made some of the tough decisions that not only 00:20:53.279 --> 00:20:53.859 the pub 00:20:53.859 --> 00:20:56.630 But also the councils had to make with landfill mining and 00:20:56.630 --> 00:20:58.700 CNG if we didn't make those decisions 00:20:58.700 --> 00:21:01.289 We could be looking at a significant loss this year. Maybe 00:21:01.289 --> 00:21:04.640 upwards of four million dollars. And so I don't want to 00:21:05.599 --> 00:21:06.680 Emphasize that too strongly 00:21:06.680 --> 00:21:08.880 But I do want to tip my hat to staff to the managers that 00:21:08.880 --> 00:21:10.480 have worked really hard over the last 00:21:10.900 --> 00:21:12.900 13 or 14 months to achieve these results 00:21:15.079 --> 00:21:16.799 We talked about the positions earlier 00:21:16.799 --> 00:21:19.299 We do want to have some flexibility to complete our reorgan 00:21:19.299 --> 00:21:22.450 ization as well as start growing some of our own talent over 00:21:22.450 --> 00:21:23.119 the next few months 00:21:24.119 --> 00:21:27.119 Whenever we return to the pub in the council next winter 00:21:27.319 --> 00:21:29.470 Then one of the things that we'll be talking about is is 00:21:29.470 --> 00:21:31.920 our staffing where it needs to be and we need to make 00:21:31.920 --> 00:21:32.160 additional 00:21:32.400 --> 00:21:35.480 Adjustments here. I think we're just on the early edges of 00:21:35.480 --> 00:21:37.960 implementing what the blue ridge recommendations are 00:21:37.960 --> 00:21:40.980 And so this may change slightly, but I think we're in 00:21:40.980 --> 00:21:43.000 really good position with a lot of the vacancies 00:21:43.000 --> 00:21:45.000 We have to address some of our needs 00:21:45.960 --> 00:21:49.559 This is kind of an eye chart so get out your your good 00:21:49.559 --> 00:21:52.519 glasses. This is our capital plan 00:21:53.480 --> 00:21:56.000 For solid waste and like some of the other utilities 00:21:56.480 --> 00:21:59.490 We're not quite as long-term asset intensive. We're more 00:21:59.490 --> 00:22:03.000 focused on rolling stock shorter lived assets. So a lot of 00:22:03.000 --> 00:22:03.720 equipment 00:22:04.720 --> 00:22:06.839 Trucks some light duty vehicles, but you also have cell 00:22:06.839 --> 00:22:09.200 development that you've got to contend with 00:22:09.920 --> 00:22:12.670 Cell development comes around bus every six or seven years 00:22:12.670 --> 00:22:15.200 and so that's something that we could kind of deem as a 00:22:15.200 --> 00:22:16.059 short-term asset 00:22:16.059 --> 00:22:18.799 As well our goal on this is to really shift from debt 00:22:18.799 --> 00:22:22.180 service over to revenue funded capital as much as we can 00:22:22.480 --> 00:22:23.920 On this bottom line here 00:22:23.920 --> 00:22:26.990 You can kind of see where we started at revenue funded all 00:22:26.990 --> 00:22:27.960 the way up to about 00:22:28.160 --> 00:22:32.039 79% as we get to the fifth year in our projections and so 00:22:32.039 --> 00:22:34.039 we think we may be able to beat that 00:22:34.119 --> 00:22:35.319 It's a little bit early 00:22:35.319 --> 00:22:38.480 But in terms of maintaining our fleet taking better care of 00:22:38.480 --> 00:22:41.480 it, we do think that we'll be able to reduce some of our 00:22:41.480 --> 00:22:41.740 fleet 00:22:41.740 --> 00:22:43.740 And equipment needs in the out years as well 00:22:46.839 --> 00:22:48.390 And that is it for the departmental side I'll stand for any 00:22:48.390 --> 00:22:50.559 questions you might have 00:22:54.839 --> 00:22:58.599 Now that's that's good I appreciate the summary that that's 00:23:01.200 --> 00:23:03.869 Didn't take that one sure did seem a lot longer seem like 00:23:03.869 --> 00:23:06.000 it took a lot longer getting to that point 00:23:11.640 --> 00:23:14.000 My beard was solid brown when we started yeah 00:23:16.599 --> 00:23:18.599 Not quite I remember 00:23:22.599 --> 00:23:24.920 Thank you very much, yeah, thank you appreciate it 00:23:29.039 --> 00:23:31.039 Okay moving on 00:23:31.319 --> 00:23:33.319 to the regular meeting 00:23:33.759 --> 00:23:37.750 First we had the consent agenda. We have one item on the 00:23:37.750 --> 00:23:39.039 consent agenda 00:23:41.720 --> 00:23:44.079 Which is item a any 00:23:45.400 --> 00:23:48.319 Board member like to take that 00:23:49.680 --> 00:23:52.640 Out and put that into individual consideration 00:23:55.079 --> 00:23:57.079 Questions 00:23:57.440 --> 00:23:59.609 Hearing none is there a motion then on item a of the 00:23:59.609 --> 00:24:00.480 consent agenda 00:24:02.160 --> 00:24:04.160 I'll move approval 00:24:05.079 --> 00:24:09.240 Motion and a second discussion all in favor say aye 00:24:10.440 --> 00:24:12.440 Any opposed? 00:24:13.680 --> 00:24:15.680 Consent agenda passes 00:24:16.720 --> 00:24:20.339 Moving on to items for individual consideration item a is 00:24:20.339 --> 00:24:24.720 the public utility board draft minutes of July 9th 00:24:26.039 --> 00:24:28.039 2018 00:24:29.000 --> 00:24:32.920 These have been distributed in advance any corrections or 00:24:32.920 --> 00:24:35.279 comments 00:24:38.759 --> 00:24:40.519 Changes 00:24:40.519 --> 00:24:44.119 Hearing none. Is there a motion then on the minutes for 00:24:44.119 --> 00:24:46.440 July 9th 2018? 00:24:47.559 --> 00:24:49.559 recommend approval 00:24:50.640 --> 00:24:53.079 Second have a motion and a second to approve 00:24:54.240 --> 00:24:56.559 discussion all in favor say aye 00:25:00.000 --> 00:25:02.000 Thank you 00:25:07.079 --> 00:25:11.000 Okay, item B excuse me we're gonna wait on item B 00:25:12.079 --> 00:25:14.319 We really have to we need to 00:25:15.680 --> 00:25:17.980 Look at the budget before we set the right so 00:25:18.880 --> 00:25:22.950 We will put that usually works. Yeah, we're gonna move that 00:25:22.950 --> 00:25:24.680 to just before item G 00:25:24.680 --> 00:25:28.420 so we'll go right into item C which is to 00:25:29.319 --> 00:25:32.369 Consider recommending approval of the water fiscal year 00:25:32.369 --> 00:25:35.799 2018-19 operating and capital budget 00:25:44.240 --> 00:25:45.039 Pb members, my name is Tony point them the director finance 00:25:45.039 --> 00:25:48.259 just really quickly 00:25:48.960 --> 00:25:51.599 Want to just recap for you? 00:25:51.599 --> 00:25:55.200 I know we've had a lot of discussions with you over the 00:25:55.200 --> 00:25:58.440 last a couple of months couple weeks about this budget 00:25:59.039 --> 00:26:01.950 Well, we came back to you after we met with the City 00:26:01.950 --> 00:26:05.759 Council was the recommendation on a no rate increase 00:26:06.559 --> 00:26:09.519 Budget that's that's still the recommendation today 00:26:10.519 --> 00:26:15.279 This here is the financial forecast. We're looking at 00:26:16.079 --> 00:26:19.170 a little bit over 50 million dollars in expenses that's 00:26:19.170 --> 00:26:22.240 being recommended again, no rate increases 00:26:23.000 --> 00:26:26.160 For this year or projected for the next five years 00:26:27.079 --> 00:26:29.900 We have had a number of questions that have come up surely 00:26:29.900 --> 00:26:30.799 here by the Pb 00:26:30.799 --> 00:26:33.549 but also by the council that will continue to evaluate and 00:26:33.549 --> 00:26:35.680 look at this budget over the next few months and 00:26:36.200 --> 00:26:38.200 certainly as we prepare for 00:26:39.119 --> 00:26:43.740 Next year's budget not the 18-19, but the 19-20 budget then 00:26:43.740 --> 00:26:47.099 we'll be briefing you again on where we are again 00:26:47.720 --> 00:26:50.130 On an annual basis, we're going to be able to look at this 00:26:50.130 --> 00:26:50.519 forecast 00:26:50.519 --> 00:26:53.000 Not just within the context of a five-year but certainly 00:26:53.000 --> 00:26:54.220 within the context of a ten-year 00:26:54.680 --> 00:26:58.450 And if adjustments are necessary as we go through that will 00:26:58.450 --> 00:26:59.859 certainly be discussing that with you 00:26:59.900 --> 00:27:02.599 We think that this budget positions the fund well 00:27:03.720 --> 00:27:07.680 Certainly keeps our reserves within the targets that we 00:27:07.680 --> 00:27:08.799 have we certainly have 00:27:09.319 --> 00:27:12.019 Some large capital projects that are out there that we're 00:27:12.019 --> 00:27:14.839 cognizant of I will continue to evaluate those work with 00:27:14.839 --> 00:27:15.640 the department 00:27:16.039 --> 00:27:20.589 Look at prioritizing their capital projects. So I don't 00:27:20.589 --> 00:27:21.839 have anything further 00:27:21.839 --> 00:27:24.069 If you have any questions, I'll be happy to answer those 00:27:24.069 --> 00:27:24.880 questions again 00:27:24.880 --> 00:27:27.930 But our recommendation today is a budget with no rate 00:27:27.930 --> 00:27:29.759 change no changes to any of the rates 00:27:30.119 --> 00:27:32.119 And I'll stand for any questions that you may have 00:27:35.079 --> 00:27:37.079 Questions 00:27:45.799 --> 00:27:50.000 We sure have is there a motion to handle item C I'll move 00:27:50.000 --> 00:27:50.759 approval 00:27:52.480 --> 00:27:56.519 Second motion and a second to approve discussion 00:27:59.200 --> 00:28:03.720 No, no rate increase or decrease no change on the rate 00:28:06.960 --> 00:28:08.960 Any other discussion 00:28:09.279 --> 00:28:13.019 All in favor say aye. Aye any opposed same sign 00:28:13.680 --> 00:28:15.519 Okay 00:28:15.519 --> 00:28:18.140 Item D is to consider recommending approval of the 00:28:18.140 --> 00:28:20.160 wastewater and drainage fiscal year 00:28:20.880 --> 00:28:23.319 2018-19 operating and capital budget 00:28:28.319 --> 00:28:31.920 So again some similar situation here with this budget we've 00:28:31.920 --> 00:28:34.789 had a number of discussions with you just wanted to recap 00:28:34.789 --> 00:28:35.480 really quickly 00:28:36.160 --> 00:28:40.170 This budget does recommend a decrease of five percent in 00:28:40.170 --> 00:28:40.799 rates 00:28:41.599 --> 00:28:44.839 No rate increases projected currently over the next 00:28:45.519 --> 00:28:48.660 Four years of this planning window again, just like what 00:28:48.660 --> 00:28:52.480 the water budget will continue to evaluate the needs 00:28:53.000 --> 00:28:56.180 Capital programs and in this budget certainly just like on 00:28:56.180 --> 00:28:59.160 the water side. We also have a large 00:29:00.519 --> 00:29:04.240 Expansion or addition to our treatment facilities 00:29:04.720 --> 00:29:07.180 Out in the 10-year window that will continue to evaluate 00:29:07.180 --> 00:29:10.039 and and come back to you have those discussions with you 00:29:10.480 --> 00:29:12.480 This budget also as we previously discussed 00:29:13.359 --> 00:29:18.710 We were able to separate out the drainage component, but it 00:29:18.710 --> 00:29:19.920 's still part of this budget 00:29:19.920 --> 00:29:22.200 It was not separated out to a separate fund 00:29:23.160 --> 00:29:27.279 So we are also recommending no changes to that 00:29:27.920 --> 00:29:30.000 drainage budget we have had 00:29:30.880 --> 00:29:34.119 Half an FTE increase that's being recommended 00:29:34.759 --> 00:29:38.390 From what we previously discussed with you and that's just 00:29:38.390 --> 00:29:40.599 to continue to support that operation 00:29:41.279 --> 00:29:44.039 Again, we've seen this budget a couple of times with you 00:29:44.039 --> 00:29:47.099 I'll be happy to answer any questions that you may have our 00:29:47.099 --> 00:29:49.849 recommendation again is for a five percent decrease in 00:29:49.849 --> 00:29:50.160 rates 00:29:50.400 --> 00:29:52.809 We previously talked to you about where those how we're 00:29:52.809 --> 00:29:55.099 going to do that in a modified cost of service 00:29:55.640 --> 00:29:57.880 Strategy versus across the board. We'll talk a little more 00:29:57.880 --> 00:29:59.440 about that. We'll get to the rates 00:30:01.880 --> 00:30:03.880 Questions on the 00:30:04.599 --> 00:30:08.710 Wastewater drainage fiscal year 2018-19 operating capital 00:30:08.710 --> 00:30:09.559 budget 00:30:12.279 --> 00:30:14.680 Is there a motion then on item D 00:30:15.480 --> 00:30:16.839 move 00:30:16.839 --> 00:30:18.200 for 00:30:18.200 --> 00:30:20.440 Recommendation okay, we have a motion to approve 00:30:21.079 --> 00:30:23.799 Second and a second discussion 00:30:24.759 --> 00:30:26.759 All in favor say aye 00:30:27.000 --> 00:30:29.000 Any opposed? 00:30:29.640 --> 00:30:31.640 Okay, you're on a roll 00:30:41.279 --> 00:30:43.279 So 00:30:51.119 --> 00:30:54.160 Now we're on item B right I'm following this correctly, let 00:30:54.160 --> 00:30:57.920 's see. No, actually we're on item E. We'll wait 00:30:59.680 --> 00:31:01.680 Get through let's get through all the 00:31:02.400 --> 00:31:06.230 Budget stuff that will go to the rights. So item E is to 00:31:06.230 --> 00:31:07.200 consider 00:31:08.079 --> 00:31:09.640 recommending approval 00:31:09.640 --> 00:31:13.240 of the customer service fiscal year 2018-19 operating 00:31:13.240 --> 00:31:13.740 budget 00:31:14.759 --> 00:31:17.240 So as as we've discussed previously 00:31:18.039 --> 00:31:22.180 We our recommendation today is to create a new internal 00:31:22.180 --> 00:31:25.119 service fund for customer service 00:31:25.119 --> 00:31:28.720 This was previous all these expenses were previously in the 00:31:28.720 --> 00:31:29.619 water fund 00:31:30.039 --> 00:31:33.640 And as we discussed with you that was having an impact on 00:31:33.640 --> 00:31:36.559 how we calculated the required reserves in that fund 00:31:36.920 --> 00:31:40.519 Again, we presented this this discussion to the City 00:31:40.519 --> 00:31:40.880 Council 00:31:41.480 --> 00:31:44.529 Council was shown supportive and recommended approval will 00:31:44.529 --> 00:31:47.059 be presenting that to them contingent upon your approval 00:31:47.059 --> 00:31:47.400 today 00:31:48.079 --> 00:31:51.680 Because this establishes a separate internal service fund 00:31:51.680 --> 00:31:54.349 for 18-19 a little bit over five point three million 00:31:54.349 --> 00:31:56.200 dollars of expenses 00:31:56.480 --> 00:32:00.640 This fund is funded by transfers from the utilities 00:32:00.640 --> 00:32:01.440 primarily 00:32:02.119 --> 00:32:04.119 into this fund for 00:32:04.160 --> 00:32:07.930 Utility billing that is done through this operation that 00:32:07.930 --> 00:32:10.609 Tiffany Thompson is our customer service manager and she's 00:32:10.609 --> 00:32:11.200 not here today 00:32:11.200 --> 00:32:13.720 But I'll be happy to answer any questions that you may have 00:32:15.240 --> 00:32:17.920 That concludes my presentation for you. I 00:32:21.599 --> 00:32:23.599 Do have a question on the 00:32:25.680 --> 00:32:27.680 Allocation of the cost of service 00:32:28.400 --> 00:32:32.000 How is that calculated is that revenue driven or is that 00:32:32.000 --> 00:32:34.119 customer number of customer driven? 00:32:35.119 --> 00:32:38.220 Anything to probably help me here. He was he was there over 00:32:38.220 --> 00:32:38.960 that area 00:32:38.960 --> 00:32:41.369 But I believe this is based on the accounts number of 00:32:41.369 --> 00:32:43.440 accounts that are billed for each utility 00:32:48.039 --> 00:32:52.160 As you can see the the bulk of that is related to electric 00:32:57.599 --> 00:32:59.279 Okay 00:32:59.279 --> 00:33:00.960 Any other questions? 00:33:00.960 --> 00:33:03.769 Not a question, but a comment. I do think this is a much 00:33:03.769 --> 00:33:07.119 better way for all the utilities to be served 00:33:07.119 --> 00:33:09.400 So I think I said it before say it again 00:33:11.880 --> 00:33:13.880 Okay 00:33:15.480 --> 00:33:18.230 Comments or questions, is there a motion then on item II 00:33:18.230 --> 00:33:19.880 moved to approve 00:33:20.759 --> 00:33:23.160 We have a motion to approve. Is there a second? 00:33:24.480 --> 00:33:27.140 Second and a second any discussion 00:33:28.319 --> 00:33:30.319 All in favor say aye 00:33:31.039 --> 00:33:32.680 Any opposed 00:33:32.680 --> 00:33:34.480 motion passes 00:33:34.480 --> 00:33:37.630 Item F is to consider recommending approval of the solid 00:33:37.630 --> 00:33:38.720 waste fiscal year 00:33:39.640 --> 00:33:41.839 2018-19 operating and capital budget 00:33:47.039 --> 00:33:47.920 Good afternoon PB members, mr. Chairman's Nick Vincent 00:33:47.920 --> 00:33:52.759 utility business manager of the city of Denton 00:33:52.920 --> 00:33:55.009 They pull up here the solid waste presentation that we just 00:33:55.009 --> 00:33:55.680 walked through 00:34:01.079 --> 00:34:03.079 As 00:34:05.400 --> 00:34:08.010 I stated before we are seeking approval of the 18-19 budget 00:34:08.010 --> 00:34:11.719 is proposed to you today and it will be a placeholder 00:34:11.719 --> 00:34:12.400 budget 00:34:12.400 --> 00:34:15.179 We will come back to you at the first the fiscal year once 00:34:15.179 --> 00:34:18.119 we receive formal direction on the operational review 00:34:18.840 --> 00:34:20.460 If you have any questions, I'll be happy to answer them. If 00:34:20.460 --> 00:34:22.880 you didn't ask them last time. I'll be happy to answer them 00:34:24.920 --> 00:34:29.039 Okay, any questions anything come to anybody 00:34:31.119 --> 00:34:34.559 All right, is there a motion then on item F 00:34:36.480 --> 00:34:41.559 Recommend approval we have a motion to approve. Is there a 00:34:41.559 --> 00:34:45.559 second second second discussion 00:34:46.880 --> 00:34:48.880 All in favor say aye 00:34:49.400 --> 00:34:51.400 Any opposed same sign? 00:34:52.079 --> 00:34:54.679 Okay, we'll now move back up to item B 00:34:55.920 --> 00:34:59.019 Which is consider recommending an ordinance establishing 00:34:59.019 --> 00:35:01.119 the schedule of rates for water service 00:35:01.960 --> 00:35:03.840 providing for a repealer 00:35:03.840 --> 00:35:06.590 Providing for a severability clause and providing for an 00:35:06.590 --> 00:35:07.420 effective date 00:35:10.679 --> 00:35:15.239 Some as chairman and members of the Pb again no changes 00:35:15.239 --> 00:35:15.679 here 00:35:16.599 --> 00:35:19.360 Well one minor change we had briefly 00:35:20.639 --> 00:35:24.239 Communicated to you that the wholesale a raw water rate 00:35:24.239 --> 00:35:26.440 that we charge to the opportunity 00:35:26.800 --> 00:35:29.599 Would change a contingent upon the city of Dallas is rate 00:35:30.199 --> 00:35:32.199 It's 85% 00:35:32.400 --> 00:35:34.840 That we did receive that today 00:35:35.480 --> 00:35:37.480 And so that is now 00:35:38.079 --> 00:35:40.079 calculated at 00:35:40.679 --> 00:35:42.679 72 00:35:42.800 --> 00:35:44.199 86 00:35:44.199 --> 00:35:47.800 Since and so will we we will be updating the ordinance that 00:35:47.800 --> 00:35:51.480 we provided to you for the council consideration to update 00:35:51.480 --> 00:35:51.760 that 00:35:51.880 --> 00:35:54.719 Other than that, there's no changes from what we previously 00:35:55.840 --> 00:35:57.840 Communicated to you a couple of weeks ago 00:36:00.119 --> 00:36:02.280 Stand for any other questions any questions that you may 00:36:02.280 --> 00:36:02.360 have 00:36:03.360 --> 00:36:05.280 Okay 00:36:05.280 --> 00:36:09.360 And that rate is mandated by contract. Yes, that's correct 00:36:11.159 --> 00:36:13.159 Question other questions 00:36:13.599 --> 00:36:16.480 No, is there a motion then to recommend? 00:36:17.559 --> 00:36:19.559 item B 00:36:20.679 --> 00:36:22.679 Recommend approval 00:36:23.639 --> 00:36:25.639 Have a motion 00:36:26.920 --> 00:36:31.280 Discussion all in favor say aye any opposed 00:36:35.559 --> 00:36:39.159 Item G is to consider recommending an ordinance 00:36:39.159 --> 00:36:42.239 establishing the schedule of rates for wastewater service 00:36:42.760 --> 00:36:46.360 Providing for a repealer providing for a severability 00:36:46.360 --> 00:36:48.480 clause and providing for an effective date 00:36:51.159 --> 00:36:54.369 So, mr. Chairman and P members again no changes from what 00:36:54.369 --> 00:36:58.909 we previously discussed with you within the wastewater 00:36:58.909 --> 00:36:59.280 rates 00:36:59.800 --> 00:37:02.369 Certainly if you have any specific questions about any of 00:37:02.369 --> 00:37:05.519 the recommendations here, I'd be happy to go through that 00:37:06.199 --> 00:37:08.559 So there is a change 00:37:09.440 --> 00:37:12.110 That we had recommended I'll just kind of make sure that I 00:37:12.110 --> 00:37:14.679 point that out on the newcomer rates 00:37:14.679 --> 00:37:18.389 We are proposing to decrease that to 5400 gallons from 6, 00:37:18.389 --> 00:37:19.360 000 gallons 00:37:19.840 --> 00:37:21.840 based on a 10-year review of 00:37:22.719 --> 00:37:25.380 Where that usage has been and so that'll be that's part of 00:37:25.380 --> 00:37:26.360 our condition 00:37:26.360 --> 00:37:28.579 I believe that we talked to you about that the last time we 00:37:28.579 --> 00:37:29.039 were here 00:37:35.239 --> 00:37:37.239 Questions 00:37:39.840 --> 00:37:43.039 No, is there a motion then on item G 00:37:46.400 --> 00:37:48.400 Motion and second discussion 00:37:49.159 --> 00:37:51.159 All in favor say aye 00:37:51.519 --> 00:37:53.519 Any opposed? 00:37:53.599 --> 00:37:57.079 Okay, item H is consider recommending an ordinance 00:37:57.840 --> 00:38:00.010 establishing the schedule of rates for miscellaneous 00:38:00.010 --> 00:38:00.519 service 00:38:01.159 --> 00:38:04.309 Providing for repealer providing for a severability clause 00:38:04.309 --> 00:38:06.699 and providing for an effective date 00:38:08.000 --> 00:38:10.429 Mr. Chairman, I don't have a presentation on this 00:38:10.429 --> 00:38:11.400 particular one 00:38:12.079 --> 00:38:15.130 But I do want to just remind the PB that based on our 00:38:15.130 --> 00:38:16.880 presentation a couple weeks ago 00:38:17.800 --> 00:38:21.400 We are recommending within the miscellaneous rate ordin 00:38:21.400 --> 00:38:22.300 ances ordinance 00:38:22.960 --> 00:38:28.480 to reduce by 50% the residential delinquent service fee 00:38:28.480 --> 00:38:29.320 from 00:38:29.719 --> 00:38:33.519 $46 to $23 and the residential reconnection charge 00:38:34.159 --> 00:38:37.159 For same-day service is decreased from 61 00:38:37.679 --> 00:38:42.630 To $30 and that's primarily due to some of the or to the AM 00:38:42.630 --> 00:38:42.800 I 00:38:43.519 --> 00:38:47.000 Capabilities that we now have so other than that 00:38:47.000 --> 00:38:49.329 Those are the only changes that we're recommending within 00:38:49.329 --> 00:38:52.239 this miscellaneous rate ordinance to be happy to answer any 00:38:52.239 --> 00:38:53.280 questions that you may have 00:38:55.599 --> 00:38:59.429 So those are due to more effective way of us being able to 00:38:59.429 --> 00:39:02.119 connect and disconnect that's recognition of 00:39:02.559 --> 00:39:05.469 A reduction in the cost of providing that service or doing 00:39:05.469 --> 00:39:07.000 that particular service 00:39:07.679 --> 00:39:09.679 Okay 00:39:10.199 --> 00:39:12.960 Okay, any other questions 00:39:15.079 --> 00:39:17.519 Not if there's a motion then on item H 00:39:18.519 --> 00:39:20.519 move to approve 00:39:21.119 --> 00:39:24.179 Second we have a motion and second any discussion 00:39:25.159 --> 00:39:27.159 All in favor say aye 00:39:27.440 --> 00:39:29.739 Any opposed same side 00:39:30.679 --> 00:39:31.960 Okay 00:39:31.960 --> 00:39:34.440 Thank you Tony for taking us through those. Thank you 00:39:36.199 --> 00:39:38.800 Item I is ACM update 00:39:39.679 --> 00:39:42.559 Mr. Chairman members of the board as you know 00:39:42.559 --> 00:39:45.519 We've experienced a record heat the last number of the last 00:39:45.519 --> 00:39:47.519 week and continue to do so this week 00:39:47.519 --> 00:39:50.429 And so we thought it would be good idea to have someone 00:39:50.429 --> 00:39:51.119 from DME 00:39:51.119 --> 00:39:53.800 So I've got Smith day here who can give the board 00:39:53.800 --> 00:39:56.539 Oh, I would like to give the board just a quick overview of 00:39:56.539 --> 00:39:58.239 how the energy center is doing 00:39:58.239 --> 00:40:00.110 Well the last number of days with the record heat we've 00:40:00.110 --> 00:40:01.199 experienced here in the area 00:40:03.960 --> 00:40:09.429 Good evening, I'm Smith day with DME. I'm the regulatory 00:40:09.429 --> 00:40:10.880 and risk division manager and 00:40:12.440 --> 00:40:17.070 As you can imagine this past week is as you've seen it you 00:40:17.070 --> 00:40:19.699 've seen it on the news and it felt that outside obviously 00:40:20.119 --> 00:40:22.119 record-breaking heat and 00:40:22.800 --> 00:40:26.530 It was it was the first week where the deck was operating 00:40:26.530 --> 00:40:29.099 at full steam coincidentally, so 00:40:31.000 --> 00:40:34.940 We've got a slew of data and numbers that have 00:40:35.800 --> 00:40:39.309 Fallen in as through the first week of our full operation 00:40:39.309 --> 00:40:40.059 of the deck 00:40:40.880 --> 00:40:42.880 Those numbers are being 00:40:43.000 --> 00:40:45.699 Crunched and obviously there's just having some of them 00:40:45.699 --> 00:40:46.980 yesterday and Saturday 00:40:47.480 --> 00:40:50.119 Friday and Thursday, there's no time to put those all 00:40:50.119 --> 00:40:52.880 together for you here, but this is just for some high-level 00:40:53.800 --> 00:40:55.800 information 00:40:56.280 --> 00:40:58.280 So Urquhart on I 00:40:58.719 --> 00:41:02.039 think as some of you may have heard last week on Thursday 00:41:02.039 --> 00:41:03.880 hit a all-time peak of 00:41:05.440 --> 00:41:07.440 73,000 megawatts and 00:41:07.559 --> 00:41:12.929 Also, coincidentally DME hit a all-time peak of 369 megawat 00:41:12.929 --> 00:41:14.159 ts last Thursday 00:41:15.159 --> 00:41:18.800 That smashed the previous record which was the previous day 00:41:18.800 --> 00:41:22.119 Wednesday was of 352 megawatts 00:41:23.079 --> 00:41:26.210 Absolutely smashed it and that compares to last year the 00:41:26.210 --> 00:41:27.480 last year's 00:41:28.159 --> 00:41:33.280 All all-time peak was total peak day was 350 megawatts 00:41:33.280 --> 00:41:38.139 So we've at went last Wednesday. We thought hey 352 00:41:38.599 --> 00:41:42.199 Wow, we broke broke last year pretty easily then Thursday 00:41:42.199 --> 00:41:42.480 came and 00:41:43.199 --> 00:41:45.199 Absolutely wrecked it 00:41:45.360 --> 00:41:47.360 yesterday was I 00:41:48.079 --> 00:41:50.940 Want to say yesterday was she yes, it was 00:41:51.559 --> 00:41:56.599 347 megawatts which is pretty incredible for an off-peak 00:41:56.599 --> 00:41:56.920 day 00:41:56.920 --> 00:42:00.519 Which is every Sunday is considered an off-peak day. So 00:42:00.519 --> 00:42:00.880 anyway 00:42:02.199 --> 00:42:04.360 on with the deck the deck had 00:42:05.559 --> 00:42:10.469 Previous to last week. There was some pipeline work being 00:42:10.469 --> 00:42:11.099 done and 00:42:11.639 --> 00:42:15.039 So that the pipeline company had to curtail some of the gas 00:42:15.760 --> 00:42:16.820 that 00:42:16.820 --> 00:42:19.829 The weather hadn't hit yet. So that was really no big 00:42:19.829 --> 00:42:21.300 effect there. So 00:42:22.039 --> 00:42:24.559 the gas came back on fully last week and 00:42:25.360 --> 00:42:29.079 The deck the engines were running running excellent 00:42:29.599 --> 00:42:32.639 They're running beautifully and they're performing and so 00:42:32.639 --> 00:42:34.900 they've been protecting us all week 00:42:36.360 --> 00:42:38.719 Against these high prices with some of which you've seen 00:42:38.719 --> 00:42:41.679 I don't know if you some of you may have the app on on your 00:42:41.679 --> 00:42:43.000 phone for ERCOT and 00:42:43.480 --> 00:42:47.360 They've been hitting in the 2000 3000 range sometimes for 00:42:47.360 --> 00:42:50.289 some hours mostly in the afternoon hours between one o' 00:42:50.289 --> 00:42:50.960 clock and seven 00:42:51.199 --> 00:42:53.480 Is when you'll see those extreme prices 00:42:54.360 --> 00:42:57.150 Coincides with the extreme heat go figure but that's 00:42:57.150 --> 00:43:00.480 exactly the way it works during those hours 00:43:00.480 --> 00:43:02.480 We've also seen our wind production 00:43:03.360 --> 00:43:05.360 Decrease you see that and 00:43:06.000 --> 00:43:08.000 That's a typical 00:43:08.840 --> 00:43:10.840 Situation as part of the country 00:43:10.880 --> 00:43:12.880 your western winds 00:43:12.880 --> 00:43:16.610 fall off and tremendous heat when high pressure sits over 00:43:16.610 --> 00:43:17.199 the state so 00:43:17.880 --> 00:43:19.880 that the wind dives 00:43:20.599 --> 00:43:25.320 the oppressive heat comes in the loads come up and then 00:43:25.840 --> 00:43:29.440 Scarcity pricing hits and that's that's when the decks 00:43:29.440 --> 00:43:32.400 jumped into action and and protect us. So 00:43:33.599 --> 00:43:34.960 in 00:43:34.960 --> 00:43:36.960 general 00:43:37.079 --> 00:43:39.409 Things are working. Well, those are the good things there 00:43:39.409 --> 00:43:41.960 haven't been without hiccups. I mean when you have an 00:43:44.199 --> 00:43:46.199 Enterprise like this like running a 00:43:46.679 --> 00:43:49.559 Tremendous plant like this. It has a few problems one of 00:43:49.559 --> 00:43:52.489 them being the gas. The other was there there was some tele 00:43:52.489 --> 00:43:52.760 metry 00:43:53.559 --> 00:43:56.610 Issues it was all worked around. They didn't cause any any 00:43:56.610 --> 00:43:59.360 operational problems. We still had the deck running 00:43:59.440 --> 00:44:02.449 It's just that's mostly tweaking on the computer systems 00:44:02.449 --> 00:44:05.559 that talk to ERCOT and they know there's just a few little 00:44:05.559 --> 00:44:06.440 things to iron out 00:44:06.440 --> 00:44:09.559 But nothing that's stopping us from running full full out 00:44:09.559 --> 00:44:10.400 full capacity 00:44:10.960 --> 00:44:12.440 so 00:44:12.440 --> 00:44:15.260 It's there. It's been running. I don't have a you know, 00:44:15.260 --> 00:44:18.360 like I said, I don't have a whole bunch of numbers to throw 00:44:18.360 --> 00:44:18.440 at 00:44:18.440 --> 00:44:20.769 Your crunch, but any general questions, I'll be happy to 00:44:20.769 --> 00:44:21.320 entertain 00:44:22.199 --> 00:44:25.059 You maybe can't answer this but I'm curious. Why would they 00:44:25.059 --> 00:44:28.320 do a pipeline inspection in July in Texas? 00:44:28.320 --> 00:44:31.920 That's like doing it in January in northern Minnesota. That 00:44:31.920 --> 00:44:35.519 doesn't really make a lot of we have the same question and 00:44:36.119 --> 00:44:40.550 There was an effort to and by the way that pipeline did not 00:44:40.550 --> 00:44:41.480 only affect 00:44:42.119 --> 00:44:44.119 DME it affected 00:44:44.559 --> 00:44:48.440 Other plants as well. Sure. So so because that plant and 00:44:48.440 --> 00:44:50.239 pipeline feeds multiple ones, but 00:44:52.920 --> 00:44:55.190 No one asked us the pipeline company had a 10-year 00:44:55.190 --> 00:44:58.960 compliance regulation they had to fulfill and 00:44:59.480 --> 00:45:02.260 It's from what we are understood. It was a federal 00:45:02.260 --> 00:45:03.119 regulation 00:45:04.599 --> 00:45:07.320 So there was reach out to the Public Utility Commission 00:45:07.320 --> 00:45:09.800 Railroad Commission and 00:45:11.280 --> 00:45:13.500 There wasn't a whole because it was federal there wasn't a 00:45:13.500 --> 00:45:15.679 whole lot that can be done about it. Unfortunately 00:45:16.519 --> 00:45:18.519 it worked out and 00:45:20.079 --> 00:45:22.559 There's there's a couple little things left for a couple 00:45:22.559 --> 00:45:23.039 hours 00:45:23.039 --> 00:45:26.090 But the big the big stuff's done and it really won't 00:45:26.090 --> 00:45:29.960 interfere with with us in that super peak range 00:45:29.960 --> 00:45:32.909 So it shouldn't be any issue from here on it. It's 00:45:32.909 --> 00:45:35.199 important. They inspect the pipeline. Yes 00:45:35.440 --> 00:45:39.039 That's very important. Yeah, and exactly. It's a compliance 00:45:39.039 --> 00:45:41.239 thing and and it's a tough deal 00:45:41.320 --> 00:45:43.119 because 00:45:43.119 --> 00:45:47.039 If the if the pipe has a leak and it's dangerous 00:45:48.559 --> 00:45:50.659 That's we've seen a lot of things in the news bad things 00:45:50.659 --> 00:45:51.480 can happen 00:45:51.480 --> 00:45:54.719 So you don't want that at this you just kind of want to to 00:45:54.719 --> 00:45:55.719 time it better 00:45:55.719 --> 00:45:59.500 Yeah, exactly what we'd like to see but we didn't actually 00:45:59.500 --> 00:46:03.000 get harmed by it. No, no ma'am or any other plants 00:46:03.000 --> 00:46:07.159 No, no ma'am. So so, you know, we'd just like to see better 00:46:07.159 --> 00:46:10.039 timing in the future and I think you may see 00:46:10.880 --> 00:46:12.280 from 00:46:12.280 --> 00:46:15.690 Being a regulatory person and having my ear out there. You 00:46:15.690 --> 00:46:16.199 may see some 00:46:17.159 --> 00:46:19.159 movement at the state legislature 00:46:19.480 --> 00:46:23.079 To try and make better coordination rules around what the 00:46:23.079 --> 00:46:24.840 pipes do and when they do things 00:46:25.519 --> 00:46:28.099 They usually don't do things in the winter because that's 00:46:28.099 --> 00:46:28.960 that's their 00:46:30.199 --> 00:46:32.199 Yeah 00:46:33.280 --> 00:46:37.000 Must have shoulders somewhere in there. Yeah, just some 00:46:37.000 --> 00:46:40.079 over some spots. Yeah, you would you would hope 00:46:40.159 --> 00:46:43.760 Well, that's that's a great report. I'm glad to hear 00:46:43.760 --> 00:46:45.039 everything's going well 00:46:49.519 --> 00:46:53.119 Thought about it as we you know as we see the peak demand 00:46:53.119 --> 00:46:53.460 for 00:46:54.559 --> 00:46:57.360 Urquhart, so so we actually saw the deck 00:46:58.679 --> 00:47:02.199 So was it running 24 hours or just turn it no sir 00:47:03.199 --> 00:47:07.849 It's it really came into play. I mean up until 11 o'clock 00:47:07.849 --> 00:47:09.239 noon on those days 00:47:10.280 --> 00:47:14.489 Things were fairly normal. And so it was the afternoon when 00:47:14.489 --> 00:47:17.539 when the spikes started happening 00:47:17.539 --> 00:47:21.420 So it you know, we have our dispatch price at its cost and 00:47:21.420 --> 00:47:25.480 when prices go above that cost and and those generally were 00:47:25.480 --> 00:47:25.960 from 00:47:26.239 --> 00:47:29.519 You know say noon to depending on the nights. I mean we had 00:47:29.519 --> 00:47:33.199 a night there was I think it was I think about 10 o'clock 00:47:33.199 --> 00:47:36.800 I looked in it was still 98 degrees. So yeah, it would be 00:47:36.800 --> 00:47:38.380 from noon to 10 some nights 00:47:39.760 --> 00:47:44.800 Today I think we've we've seen the things actually very 00:47:44.800 --> 00:47:47.400 tame overall you look at Urquhart and and 00:47:48.840 --> 00:47:52.679 This was a pretty big test and so far so far the entire 00:47:52.679 --> 00:47:55.000 Texas grid is passing 00:47:56.239 --> 00:48:01.150 so as as far as the in general the Texas grid goes we go 00:48:01.150 --> 00:48:01.760 because 00:48:02.559 --> 00:48:03.880 we're 00:48:03.880 --> 00:48:06.440 deeply integrated into it so 00:48:07.639 --> 00:48:11.000 It's it's all working pretty well. So let's 00:48:12.519 --> 00:48:15.559 Knock on stuff. We still got some hot days to go 00:48:19.880 --> 00:48:23.480 Gonna have a cool doms gonna be 98. Yeah break out the main 00:48:23.480 --> 00:48:25.320 coats. I'm here we come 00:48:36.239 --> 00:48:38.239 Nothing further to report 00:48:38.920 --> 00:48:40.920 All right 00:48:44.639 --> 00:48:46.840 Okay concluding items under section 00:48:47.280 --> 00:48:51.039 551.0 for to the Texas Open Meetings Act respond to inqu 00:48:51.039 --> 00:48:55.000 iries from the Public Utilities Board or the public with 00:48:55.719 --> 00:48:58.860 specific factual information or recitation of policy or 00:48:59.719 --> 00:49:03.579 Accepted proposal to place a matter on the agenda for an 00:49:03.579 --> 00:49:04.840 upcoming meeting 00:49:06.639 --> 00:49:08.639 So do we have any requests for 00:49:10.079 --> 00:49:12.440 agenda items for upcoming meetings 00:49:16.599 --> 00:49:18.840 Seeing none hearing none 00:49:20.440 --> 00:49:23.480 All right, do we have a motion to adjourn 00:49:26.679 --> 00:49:30.280 We have a motion is there a second second from Allen all in 00:49:30.280 --> 00:49:31.719 favor say aye 00:49:34.000 --> 00:49:36.000 Thank you 00:49:37.239 --> 00:49:39.239 You