Aug 27, 2018 Public Utilities Board on 2018-08-27 6:00 PM

August 27th 2018 public utility board meeting to order. We actually have a scheduled a closed meeting in the beginning of this meeting so at this time we have two items in closed meeting to discuss. Item A is deliberations regarding certain public power utilities competitive matters under Texas government code section 551.08. Okay we will come back into out of closed session in the regular meeting at 645. Our first item on the agenda or first section is our consent agenda. We have let's see one two three four four items on the consent agenda. Is there any member of the board who would like to have one any of these items pulled for individual consideration? No? Hearing none. Is there a motion then for the consent agenda items A B C and D? I'll move approval. I'll second. I have a motion to approve in a second. Any discussion? Do I need to abstain from B? Yes. Probably what we need to do. So then we need to pull it. We need to pull item B. Okay. We have maybe probably just abstain from the vote. Because there's no discussion on it. You were out while the discussion was. We already have a motion second on the floor. Any other discussion? All in favor say aye. Any opposed? Any abstentions? Abstain. Thank you. Okay for items and for individual consideration item A which is consider approval of the public utilities board meeting minutes of August 13th 2018. These have been distributed and for your review any changes questions clarifications anyone would like to see on those? If not then is there a motion to approve or not approve I guess? Recommend approval. I have a motion to recommend approval and a second. Any discussion? All in favor say aye. Any opposed? Same sign. All right. Item B is to consider recommending an ordinance establishing the schedule of rates for solid waste service services providing for repealer providing for a severability clause and providing for an effective date. Good afternoon PUB members. Mr. Chairman my name is Nick Vincent. I'm the business utility manager here at the City of Denton. I'll be presenting to you today the FY 18- 19 solid waste rates. Feel free to stop me throughout the presentation if you have any questions. A little bit of history on July 23rd the PUB did approve the 18-19 operating budget for the solid waste department and then August 2nd the City Council also reviewed it. Council was scheduled to adopt the budget on September 18th with the rest of the budgets and rates for the city. Like I said if you have any questions feel free to stop me if I can't answer it staff will come up and help me answer the question. This is an overview of the rates I'll be discussing with you today. Residential rates the City Council and PUB both did approve a 12% rate decrease for residential customers in March of 2018. I will show that rate decrease to you here on the next slide. Commercial rates solid waste staff and the finance staff is not recommending any rate adjustments to the commercial rates currently. We have been working over the last several months to increase the transparency of these rates for side load and front load customers and I'll show that to you here shortly. Landfill rates also over the last several months staff has been working to address the subsid ization and align these rates with a market. We are recommending increases to three disposal rates for landfill customers and also to remove a few of the rates from the rate ordinance. These are the residential rates there are two size containers that customers can choose from. First you see here the standard cart and the large cart. Both of these rates are for a pair of residential carts so one refuse and one recycling. You can see here before the rate decrease the rate was 27.85 after the 12% decrease it's 24.51. For the large cart pair it's 33.25 before the rate decrease after the rate decrease it went to 29.26. There also is an option down here if customers want to call in for an additional large cart they can do so. The rate was 19.75 and it was decreased to 17.38 after the rate decrease. Staff is not recommending additional changes to residential rates right now this is previously approved in March of this year . These are the commercial refuse and recycling rates as I had stated. Staff had been working over the last several months to improve the transparency of these rates. These matrix tables were developed that shows the various rates the various size containers. I'll be happy to walk you through it here. The top table that you see is for the commercial side load rates in the community. There's currently two size containers offered a three cubic yard and a four cubic yard. You can very plainly see the frequencies of collection per week up here at the top. So for instance if you're a side load customer and you have a three cubic yard container being collected five times per week your rate would be 576.90 a month. Here on the bottom table these are the front load commercial rates. Same thing here their container sizes vary from three, a four, a six, and an eight at a frequency of one to six times per week. Yes sir. Does that include a rental fee for the car? For the bin or whatever? So let me answer your question. These rates the cost of service rate would include that as a component. So in this rate there's different components built into it. The collection component, the disposal component, the container recovery component, and maintenance component of the container that would be built in here. The next thing I was going to cover with you too is we're not recommending any adjustments at this time to these rates. What we are doing is we're continuing to work with N ugent Strategies that just completed our rate correction strategy , or I'm sorry our cost of service study. So they did identify rates in here that are over recovering and under recovering. What we're gonna do is return to you in the coming months with a plan to address those rates. So some of these rates could possibly come down in the future and some possibly could recommend increase. Some of the components that make up this total? That's correct. Yeah some of the different container sizes and frequencies. Yep. At the bottom here the front load commercial rates as of a stadium three, four, and six, and eight cubic yard sizes is what's currently offered. You can see here the frequency is one time a week to six time a week. And the same container here in a front load is a little bit less. If you had a three cubic yard container going five times a week it would be 408.75. Most of our fleet replacement front load now is that why that is? Yes sir. The majority of the routes are front load routes and Ethan can speak to this if he wants to or I'll be happy to answer it. There is one side load route currently in the city and the rest are front load. But let me ask Ethan to come up and confirm that number. I'd need to take a look at the routes but we do have a mix of both. In some cases it's just a front load container is not possible because of kind of the dimensions and accessibility. And so we do have some some automated or some side load commercial containers that we need to continue with. Okay. This is just a curiosity. If this is refuse and recycling rates so if you have a three cubic yard it's all garbage and then you have recycling at a four cubic yard you're paying the same amount whether boy that doesn't incentive size recycling. That's correct. And from a cost of service standpoint that's one of the corrections that we need to make is that is a big component of whatever goes into this cost. You do have your overhead you do have your you know container cost your transportation cost but disposal needs to be factored in that and there should be some type of reduction for recycling. It's a very good observation. That 's what we'll be coming back to you all with in the coming months. Good. We don't want that stuff in the landfill. Is there any more questions on the commercial front load side load rates? Okay. We move forward here. As I had stated we are recommending the three disposal rates in front of you be increased. These increases are based on the recently completed cost of service study. We are recommending that the sludge rate increase from $23 a ton that you can see here to the $46. We are recommending that the wholesale disposal rate increase from 23 to 2450 and then clean concrete asphalt brick and dirt coming into the facility we are recommending this increase from 10 to 22 dollars a ton. Staff is proposing to eliminate the falling rates and the solvage rate ordinance and these rates are either not supportive of the recently completed cost of service study they lack usage of the rate or they're not justifiable within the rate ordinance. Let me walk you through it here. You can see the rates highlighted in blue on your screen kind of a light blue color and the first one is the commercial disposal rate of 2850 a ton. This is a reduced disposal rate that has been given to select companies in the past and there's currently a few companies on this rate and this rate is not supported by the cost of service study so we are recommending it be removed from the solid waste ordinance. Moving forward these customers will be billed at the landfill to get disposal rate of $44 a ton. Disposal rate for the gate rate is not proposed to be increased this year the 44 is what's currently approved in the rate ordinance. Clean lumber disposal rate question yes sir. Is there a certain type of waste that that was intended for or is it just volume driven or was it? The commercial disposal rate Ethan you want to speak to that let me ask Ethan to come back over and speak to it. As far as we can tell and this is gonna be kind of a cop-out answer we really couldn't understand the logic behind who received that rate and who did. There's a very small number of individual or very small number of businesses some local some not local and so we really didn't have anything on the books in terms of policy guidance or decision-making criteria that would allow someone to get that rate. So will they be notified ahead of time that their rates are going to go up? We are we are I mean some of the financial impact is very low both to us and to the potential customer but we do have an account manager on our staff that once we get through with this meeting tomorrow's meeting with council we're gonna be contacting them and providing them kind of the information as well as some options that they might consider. All right clean lumber disposal rate this rate has in the past been charged occasionally to customers bringing in clean fence panels or construction debris if it doesn't have paint or stain on it and it could have been built at this reduced rate in the past with a temporary suspension of the BMR operation this material is being landfilled so we are recommending removing this rate from the ordinance and building it at the gate rate of $44 a ton. Contaminated yard waste this does come in the facility a lot of times it's mixed with municipal solid waste trash or construction debris and it's not eligible to be sent to the city's composting operation because it would contaminate their piles and this is being landfilled there's no rate adjustment here we're just trying to clean up the rate ordinance with a language so this would be built at the gate disposal rate so we are recommending this be removed from the ordinance. The pull-off fee currently and in the past solid waste staff has helped customers unload their vehicles and trailers we do feel like this is liability to the solid waste department the city as a whole with the possibility of damaging their vehicles and trailers so we are recommending this rate come out of the ordinance and moving forward we would ask customers to unload those things themselves. Sand select fill and rock sales and these are aggregate materials around the landfill site that have been sold to residents or people visiting the site in the past. Sales are currently suspended into an adequate business plan and inventory management system we've put in place or basically we can monitor how much is on site and how much is leaving the site so we can revisit with PEB in the future this is something we want to offer but currently we recommend it come out the rate ordinance. Material delivery fee of the aggregate materials above in the past solid waste staff has occasionally delivered things to residents or businesses around the city limits for a hundred dollar flat fee we are recommending this be removed from the solid waste rate ordinance we do not feel this is an adequate use of personnel's time or equipment utilization so we are recommending to come out of the rate ordinance. Citizens can still purchase or get this material delivered by businesses around the community there's plenty of those companies around. The community garden plots currently the solid waste community garden is located just south of 651 the recent approval the renovations of 651 will utilize this area as an equipment lay down yard for materials management so we are recommending this rate come out of the rate ordinance moving forward citizens can still utilize the community garden at the bowling ring park and bowling ring park is just off Windsor and South and North Lakes if you're not familiar with it. These are the next steps some staff is seeking a PEB's recommendation for the 18-19 rates today this will be presented as Ethan had mentioned to City Council tomorrow on the 28th the meeting starts at 12 a formal adoption is scheduled for September 18th staff does scheduled to come back with a series of discussions to the PEB and over the coming months Ethan will be returning with some rate setting and policy strategies and seek direction from PB and council of how to implement those or how to proceed once we get that direction we will complete the rate correction strategy Mr. Carl it'll limit the rate correction strategy to address those rates that are over and under recovering so we will return to you with that plan once formal direction is received from PB and council that concludes the presentation I'll be happy to answer any questions if you have any but we are seeking approval today or the race is presented to you. Questions comments? Just the loss of that community garden. Yes ma'am. I think that might be unpopular. How many people were using it? So today since it 's been constructed the community gardens been constructed over a little over two years if I'm not mistaken and two people have utilized it. So about fifty dollars roughly in revenue two people has utilized it. So there's enough room at Bowling Green Park? I'm not sure on that I'd have to get an answer Mr. Chairman on that. I lived earlier this year and there were some blocks. At Bowling Green. Yeah because I live over by there and it's used quite a bit so I'm surprised. Right. That the other one wasn't used more often. I didn't know it existed. You didn't know Bowling Green existed? No I didn't know it existed. I know I didn't either. And as far as the aggregates go too we should never be in competition with a private business. If there's a way for people to get what they need not through us we should be encouraging that. We still sell down on dirt. What's that? We still sell down on dirt. Which is in competition with local businesses. It's a good point. Maybe we should be thinking about that. Any other questions? Questions. All right is there a recommendation or motion on item B then? I'll move approval. Motion to approve is there a second? Second. Second. Discussion? All in favor say aye. Aye. Any opposed? Same sign. Okay motion passes. All right item C is to consider recommending adoption of an ordinance City of Denton Texas authorizing the city manager or his designee to execute a decommissioning escrow agreement among and between the Texas Municipal Power Agency, the City of Bryan, Texas, the City of Denton, Texas , the City of Garland, Texas, and the City of Greenville, Texas regarding the establishment of escrow for decommissioning pursuant to the existing joint operating agreement between the cities and TMPA and providing an effective date . Good evening Mr. Chairman and PUB members. George Morrow, DME general manager. So before you today as was indicated we're bringing you the decomm issioning escrow agreement for the Texas Municipal Power Agency which operates and maintains the Gibbon Creek power plant. A couple years ago the parties all executed a joint operating agreement which basically provides for the phase out of the project and one of the requirements was to establish a dec ommissioning escrow agreement and the agreement provides for a couple of things as indicated by the slide selection and duties of a decommissioning escrow agent, establishment of an escrow account, and then some procedures for how to make disbursements and from the escrow account. So the decommissioning plan we had a recent meeting at TMPA. A high-level strategy has been developed and so there's a vision of where we're going with the decommissioning when the when the time comes. At the moment the project scheduled the run through September, most of September if not all of it, and then you know potentially revisit it again or or not depending on what happens with other parts of our dissolution meant process. So I'm here recommending adoption of this proposed ordinance to execute this agreement. Open for questions. Questions. This is a requirement of our operating agreement. Right. And this is normal and prudent in the when you're decomm issioning a plant to develop these escrow agreements and get them set up. Correct. We're going to be putting money aside the projects committed that could take an extended period to actually you know complete all the decommission ing activities. So there's a might be a long process and it's good to have all the details out there and appointment of an escrow agent that we're all comfortable with and and that set the rules for how they put money in and take money out. Thank you. Okay any other questions? Do we have a motion then on item C? I'll move approval. Motion to approve or second? I'll second. Okay thank you. Any discussion? All in favor say aye. Aye. Any opposed? Thank you. ACM update. Thank you George. Mr. Chairman, members of the board, a couple of things to report. In your packet there's a city sponsorship request. I believe there 's a couple items that have been made recently and Tony Puente is here to provide any details if you have any questions on on those items. The other items to bring to your attention is at the next meeting we'll be welcoming a new board member Billy Cheek has been appointed by the council to to serve on the PUB. The other thing that we'll be bringing forward will be the selection of the chair and vice chair at the next meeting. So if you have any other questions I'd be happy to answer those but nothing else to report. Okay anything to add? New items? Completing items under section 551.042 of the Texas Open Meetings Act to respond in inquiries from the Public Utilities Board or the public with specific factual information or recitation of policy or accept a proposal to place a matter on the agenda for an upcoming meeting. So if there's an upcoming meeting agenda item anybody wants to say? Well I do have something though for you Randy being your last meeting. I'm gonna read what the plaque said. This plaque is awarded to Randy Robison from recognition appreciation of 12 years of valuable contributions and dedication to the City of Denton Public Utilities Board given this 27th day of August 2018. And I'd like to say I worked with you I think for three years now and it's been a pleasure. You've shown a lot of leadership during some difficult times for solid waste, DME and all of those things. Well it's like the old joke the last 12 years consisted of the best two years of my life. You will be missed though. Thank you I appreciate it. I'm gonna miss this. This has been a great I mean you do something for 12 years you you probably need to move along without a doubt but it is it's been a great pleasure. We did see you have brown hair when you started. I did have brown hair when I started. Probably a little more of it but anyway it's it's I can't blame it all on PUB though. Some of it's genetic. Thank you. Mr. Chairman you know last time to say that on behalf of the city staff I want to congratulate you on your 12 years of service to the board. During that 12 years you've been a part of a lot of a lot of decisions not only with this board but passports that have certainly impacted the City of Denton so again congratulations appreciate you being steady being very thoughtful in your comments how you how you facilitated discussions with with the board and even tough discussions and appreciate just how you handled yourself through leadership that you've emulated to to to throwing staff the other board and future board members so again congratulations and on behalf of the staff thank you very much for your leadership and looking forward to seeing you around I know you serve another capacity so I know we 'll see you soon. Thank you I appreciate that. This doesn't mean that my electric bill goes up. I had noticed it going down in the last 12 years or so. Somebody's got to pay for the flat. Is there a motion to adjourn? I thought you were going to make it. No I'm not. Thank you I appreciate it and a second. All in favor say aye. Thank you.