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 Good morning and welcome. I'd like to open the Public Utility Board meeting for the City

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 of Denton on Monday July 2022. It is 9 a.m. First point of order, are there any members

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 from the public that would like to speak or make any comments or ask any questions? Doesn't

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 appear to be so. Is anybody on the phone? No? If not, we'll move on to the regular meeting.

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 And the Consent Agenda. I've had some requests to pull some items. So far I've got A, B,

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 and F. Anybody else? Ben? Item D is in Dog. D is in Dog. I think that's plenty. Would

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 you like to consider items C and E? Oh, I'm sorry. I left the next page off. G is there

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 also. C and E and G. We got three. Chair, who have you got down pulling B? I thought

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 it was C. Well, I'm going to if somebody else didn't want to. I think you did, didn't you?

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 Did you not? I will. You did. Okay. Okay. I did initially too. I was talking with Tony.

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 I looked at the yeah. But I found out what I needed, so. I'd like to pull it. If we pull

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 B, it has to be moved to closed session. Yes. Just making sure you know. Yeah. Okay. All

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 right. Let's try this again. We're going to consider a motion for items C, E, and G. So

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 moved. Second. The motion is second. All those in favor, please say aye. Aye. Any opposed?

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 No. All right. Let's talk about item A. That was you, Lee, right? Can I say you? Yes, sir.

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 I pulled that. I requested item A. He's coming. Okay. Here comes Brian. Good morning. Good

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 morning. So just to restate your question or concern, this is a fairly thick document

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 that we've got here and fairly robust in its plan looking at managing solid waste in the

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 city of Denton over the next 40 plus years. Several of y'all have not been with us throughout

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 this entire process. We started back October a couple of years ago. COVID slowed us down

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 a little bit because we couldn't get together like we would normally do in a planning process.

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 But we're here today to really sort of roll out and get the resolution passed to accept

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 the strategy itself with a focus on diversion. Not transportation diversion, you know, moving

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 waste from one point to another, but diverting waste from being ultimately disposed of. What

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 the strategy outlines is the tools. It's kind of like, you know, the old movie Apollo 13.

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 You know, they get up in space. There's an explosion. They got to get them back to Earth.

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 And they only got so many resources and so many things that they can do. And there was

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 the wonderful line said, well, it wasn't designed to do that. And that's really sort of where

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 we're at now. It's, okay, what can it do? What can we do with the materials we have available

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 to make the necessary elimination of the waste ultimate disposal? Whether it be through traditional

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 recycling, whether it be through non-programmatic recycling, such as textiles, you know, whatever

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 other material that might be out there. So and then looking and partnering with other

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 cities that may be bringing their waste here to become more robust in their diversionary

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 tactics also. Just a couple of minutes ago, y'all approved the new gen cost of service

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 study. That's going to be important for us as we start trying to figure out how much

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 this thing is going to cost. Because again, looking at specifically, you know, how much

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 we have to spend every time we touch a piece of garbage is really important for us to do

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 that. So, you know, going as we go through not only this budget planning session, but

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 also future budget planning sessions that will help us define what these different costs

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 are going to be. Ideally, in a best case scenario, best case world, third party partners throughout

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 the city will be, whether we bring them in through some sort of economic development

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 issues or existing providers here, we'll be managing some of this waste independent

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 of the city of Denton so that we don't have to touch it. So it will be net zero to us

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 at that end. And by doing that, we can keep control on the cost that our residents are

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 having to pay curbside to manage their material.

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 What kind of time frame do you think it's going to take to implement these new programmatic

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 policies?

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 Well, again, it's continual learning is what it is. And one of the good parts about

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 having a strategy versus a plan, it allows us to be much more nimble and much more quick

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 to respond to things such as market forces, designs and technology changes, changes in

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 state law. I mean, currently, we cannot put a bag ban or a bottle deposit bill in place

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 here in the city of Denton or across the state because the Texas State Charter says we can't.

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 They've got privacy on that rule. So again, you know, given those two things that hobble

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 us just a little bit, what are we going to have to do to manage that material moving

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 forward? What kind of incentives might we have to do? How can we create value in this

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 material so that somebody, maybe other than our current processor, Pratt, but somebody

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 like film, Pratt can't take it. So, you know, who would be -- and when I talk about film,

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 I'm talking about plastic sheeting, plastic things of that nature that are not rigid containers.

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 So who can we get in town that will help us collect that, but more importantly process

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 that for ultimate recycling and end use as opposed to disposal.

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 >> Okay. Well, back to my question. Time frame?

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 >> Time frame. Again, this is, as I said earlier, this is a continual process. We've put a couple

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 of really short-term goals and long-term goals. As we had stated earlier in our budget presentation

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 here a couple, three weeks ago, we want to be able to divert, you know, over 30 percent

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 by 2030, 40 percent by 2040, 75 percent by 2075. We feel that these are attainable just

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 because of the time frame that they're in, but also it gives us the time to ramp up,

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 you know, to get some of these programs in place. You know, we're not going to be putting

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 any physical plans or physical programs in place in this next budget year. There's a

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 lot of things administratively that we have to do. We're going to have to change our code

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 of ordinances to help support what's in the plan here. We're going to have to go out with

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 some economic development plans, try to identify third-party providers to come in and manage

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 construction and demolition debris, rock, non-programmatic materials such as textiles,

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 you know, the material that Pratt can't take, you know, glass. Currently, you know, Pratt

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 is doing a wonderful job by managing our glass, but they have to transport it all the way

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 down to Houston for it to be processed. If we can find enough glass here in the North

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 Texas area so that we can get glass processor here in the city of Denton, not only have

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 we reduced emissions from hauling that stuff all the way down to Houston, but we've created

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 jobs, we've created a market, and so that's part of what all of next year will be. And

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 then in 2023, '24, that's when we start putting physical things in place, such as, you know,

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 additional recycling. We're looking at implementing a comprehensive diversion ordinance where everybody

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 will have to recycle in some way, shape, or form. So from commercially, it's not going

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 to be optional anymore, but you're going to tell us how you're going to do it and the

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 material that you have to recycle. So it may be the programmatic stuff that we currently

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 take, you know, bottles, containers, metal cans, things of that nature, or places like

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 Tetrapak and Peterbilt, which, you know, currently have wonderful zero waste type of facilities.

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 So managing that material themselves, they're the experts in what they manage. They can

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 work within their supply chain to manage that, and that's really what we want to leverage

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 through the implementation. You had mentioned about the transportation all the way to Houston

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 for the glass. Yes. By getting something up here, does that also reduce the cost of the

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 recycling? Yes, it does. Because again, you know, every time somebody touches this, every

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 mile that we have to put it on the road, you know, increases the processing cost. Currently,

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 you know, we're very fortunate with our contract with Pratt because currently we don't pay

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 anything for the processing, but many of the cities around here are paying between $75

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 and $90 a ton just to manage that material so that it can go into processing. So if we

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 can get something here, it significantly reduces that processing cost. When we get out of this

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 current contract with Pratt, I would imagine that we're going to be faced with increased

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 processing charges instead of zero, like we're doing now. So we have to position ourselves

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 right now to be able to manage that material at the lowest possible. In preparation for

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 that. In preparation, correct. Well, thank you. That answers most of my questions, so

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 I'll certainly let some others get a word in edgewise. Mr. Beck? Takes time. Good morning.

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 Good morning. On your waste management hierarchy, you've got source reduction. You were talking

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 about Tetra Pak and what they're doing. Would that be something that would fall into that

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 category? I mean, can you give us kind of a broad? Yeah. I mean, source reduction is

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 much bigger than just taking it off the top and not bringing it to us. I mean, source

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 reduction can even be looking at our own households. So instead of just going through the grocery

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 store, this looks good, this looks good, this looks good. You know, if you make a menu and

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 buy only what you need, then you don't have that bag of salad or a bag of kale that looked

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 really good, but now it's this green mushy thing sitting in the bottom of the refrigerator.

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 So you buy what you need, you buy only what you need, and then you use it all completely.

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 So that's the source reduction. Same thing, you know, as you scale up to something like

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 a Tetra Pak, you know. Most of your things are first in, first out, buy only what you

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 need, use it all, don't have anything else to throw away. Okay. So this is just a concept

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 that can be put out there in the public. We've got to lay on the public that they have some

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 obligations. Correct. You know, and it's not this, this is not the City of Denton's program

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 as a unity. It is a City of Denton cooperative. It's going to be a partnership between residents,

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 commercial businesses, visitors to the city, us as the city actually being the implementing

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 agency to make this happen. Great. Thank you. Kevin. Thank you, Chair. So this, the plan

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 is really thorough. It's amazing. I actually missed the, in April, I believe, we came before

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 the board and I was not able to attend that meeting. And, you know, it's got a lot of

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 great goals and a lot of information. The research depth of Burns and... Burns and McDonnell.

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 Burns and McDonnell. They have amazing resources. And so I have to say, the plan looks beautiful.

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 I think it's very important to reflect on Appendix B, which is the citizen input. Correct.

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 The think tank. And, you know, this, the items in Appendix B, the goals that the citizens

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 want, the vision the citizens like, you know, that's, that's been really consistent since

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 I started participating in citizen stuff in Denton, maybe about 20 years ago, like the

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 citywide comprehensive plan, the 2020 plan, the 2030 plan. Are we on the 2040 plan now?

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 I think. 2040 plan now, yeah. Yeah. So like in 2020, the 2020 plan and the 2030 plan,

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 and I assume the 2040 plan, there was a lot of focus on, we want to be innovators and

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 leaders, you know, and, and I think in our, in our goals, we have to get the data collection

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 put together where we can measure whether or not we're achieving our goals, whether

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 or not we're improving, where we have to have, you have to have the administrative capability

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 to launch new programs, evaluate them, terminate them if necessary, or support them if they're

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 doing well. So there is a bunch of back office work, if you will. So I definitely understand.

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 I think that's, that's great. And I hope we can, this board can support that back office

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 and administrative work. And I do think though, the goals here in the plan will be a starting

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 point to continue to follow the vision of the citizens that, that's been carried for

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 at least 20 years of really innovating and trying to, you know, do the best thing for

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 the citizens cost wise, environmental impact, neighborhood wise, you know, diversion wise,

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 cost of permitting, you know, like when we fill up the landfill again, now we just expanded

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 it, you know, at some point we, you know, we want, this is an important reason for diversion

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 is to make that landfill last as long as possible. You know, at one point, you know, that we've

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 talked about zero waste, and it's perhaps not fully feasible, but it's, I think it's

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 an aspirational goal. We want to not have to keep making new landfills a hundred years

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 from now. And I don't know if we'll get there even in a hundred years. So like I said, the

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 content of this plan is really great. And I just want to make sure that we say this is,

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 this is the starting point and that we can continue to find new ways to divert, to improve

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 our efficiency, to improve our environmental footprint. And, you know, whether it's partnering

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 with external partners or improving internal systems, you know, in the, within the solid

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 waste department.

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 Well, I think you hit the nail right on the head is this is a starting point. And again,

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 it's the strategy, not a plan. Plans are very static. We're going to do, we're going to

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 put this kind of collection in place. But what this allows us to do is look at that

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 data and, and right as you said, be able to evaluate, be very nimble in how we approach

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 the, you know, the, the reduction and the diversion of this material when also thank

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 you for bringing up the comp plan. We went into this sort of arm in arm with the development

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 department to ensure that it was consistent with the planning and the, and the timeframe

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 of the comp plan. In previous comprehensive plans, you've had, you know, we're going

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 to do these sustainability things and these solid waste things. I think one absence that

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 you'll notice in this current comprehensive plan is it doesn't talk about specific solid

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 waste goals, but what it does is it references our solid waste strategy. And just as you

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 said, you know, it serves at that building, that building block, that spring point, spring

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 board, you know, into to continual improvement and growth, you know, talking with the community

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 about what needs to happen and then how we go about implementing some of those programs.

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 Thank you.

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 Very good input. It was a great program. Looks like a really good plan. Thank you. I was

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 telling you that earlier. I really appreciate what you're doing. I appreciate the support

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 that y'all give us here. So thank you. Mr. Rebek. I'd like to move we approve item A.

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 The motion and a second. Any further discussion? If not, all those in favor, please say aye.

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 Any opposed? Item A is passed. Thank you. Thank you. Okay, we're going to move on to

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 item D. D is in dog. See why somebody might have a question on that. Ben. Good morning.

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 Mark Zimmer, DME engineering. Happy to answer any questions you might have. Howdy. Okay.

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 So kind of looking through this. So we've got a retainer for the company and then billable

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 hours for work. It just kind of makes me wonder how does that compare to if we hired staff

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 to do that as the as the city? What's the benefit to us? So staff does not have people

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 capable of performing that type of work, nor do we have the equipment needed to work on

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 the transmission lines. Okay. Just not even an option? Right. Okay. That's a good reason.

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 I think that's all I had actually. It's a lot of money though, Ben. Yeah, yeah. Anybody

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 else? I'm sorry. About how many events per year per 10 years require us to use transmission

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 voltage repair services? Yes. And I've been here for almost 10 years and we've had to

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 use it one time. And so this this $150,000 it's really insurance, right? Just it just

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 ensures they're available in the event we need them. Even though we have contract with

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 them now, it doesn't guarantee they'll be available for work and emergencies. It just

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 kind of guarantees rates, right? So this retainer guarantees them to be available within eight

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 hours with two crews and the equipment needed. Anyone else? Okay. Entertain a motion. Mr.

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 Ryback. Mr. Ryback, second. Any more discussion? If not, all those in favor, please say aye.

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 Aye. Opposed? Passes. Thank you very much. Okay. Item F, as in Frank. Is that was that

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 you, Ben? No, I'm sorry. Good morning. I'm Jerry Field. I'm the engineering division

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 manager for DME. What questions do you have regarding this project? Mr. Ryback. Yes, I

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 was the one who asked to pull this. I was curious if you could just give us a little

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 bit more information about this particular item. And I didn't have anything in specific,

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 but you know, there are some dollars involved and there's a program implementation. I thought

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 perhaps you could tell us a little bit more about it. You bet. I'll do my best without

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 getting into too much ingenuity. Some of you guys may understand it, but we tend to come

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 a little bit more in depth on conversation. But these items are items that we put at the

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 end of all the, or we're going to eventually put at the end of a hundred feeders. And we

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 call them, I'm calling them a bell weather meter. And what it does is it gives us a real

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 time voltage response of what's happening at the end of feeder. Now, from a regulatory

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 standpoint, I have to maintain 114 to 127 volts, but there is this process called conservation

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 voltage reduction, which we artificially lower the voltage on the system. And what that does

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 for us is that reduces actually the amount of power we have to purchase during that timeframe.

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 So we like to keep our four CP days low. And so this is when we typically use this program

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 is yes, sir. What is a CP day? Coincident peak day. Thank you. Yes. So this is an artificial

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 lowering of the voltage during that time. And what this item likes allows us to do is

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 have real time input coming in back to the system. So the folks in the operations operations

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 area are watching the voltage constantly, making sure we don't violate anything. Now,

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 even though I can go down to 114 volts, we keep it at 116. We had that safety factor

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 in there. So what happens if they see anything going below 116, they'll actually jack the

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 voltage back up at the substation. So what we want to do is we've, we put this on six

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 feeders and we had a, um, we had a proof of concept and what we're based upon the savings

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 that we saw with proof of concept, we're expecting that with this at $500 per megawatt hour, we

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 could save about $383,000 per year. So within a couple of years, we've paid for this project

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 just for that standpoint. Um, that number that you came up with is based on current

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 rates. Yes. Based on current and project. Well, based on energy rates. Um, what I'm

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 talking about is what we're being charged through the ERCOT system. It's not really

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 based on the living sense average that we pay or customers pay for kilowatt hour. It's

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 not based on that. That's, that's always going to be a variable, but that's a good point

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 because that's something that we're working on right now, adding into the equation. Um,

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 we're at 11 cents per kilowatt hour. That's about $110 per megawatt hour. So there's some

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 logic that if you go above that $110, we're not making any more money. In fact, we're

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 losing money. So you start lowering the voltage to start saving even more money. So our folks

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 in our EMO are developing lack of a better term, a widget right now to make sure all

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 the buys and sales and everything are equating. And hopefully there'll be a signal that'd

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 be sent out to our folks in the operations center to turn the system on. Again, we've

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 only got a small system in place right now. We're going to try to do it to a full system

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 place. Uh, we've got it over the next three years. It looks like we're planning on spending

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 about $62,000 over the next three years to implement these. So we're going to do about

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 30 feeders or so a year, a hundred feeders maximum. Okay. So once you get to the hundred

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 meters and you feel like you're going to have a pretty good, um, overview of current consumption

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 and the rate of growth of consumption so that you can make that adjustment. Yeah. And, and

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 the other thing that's going to be happening during this timeframe is we're, we're having

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 RFP and you guys will see it pretty soon for a advanced distribution management system

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 that will make the management of this system much more automated and keep a lot better

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 detail and a record for us to understand what the actual savings is and everything else

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 that we've got going on on the system out there. So it's a really good system. It's,

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 I mean, people have been doing CVR for probably a couple of decades now, so it's not a new

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 phenomenon. Uh, we're just now starting to introduce it here to DME. So first you're

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 going to introduce it, implement it, introduce it and have an operating maybe manually and

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 then down the road, you're intending to make it a more automated process that I understand

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 that correctly. Yes, sir. Yes, sir. In other words, the ADMS system will watch all this

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 stuff and hopefully have an input coming in from the EMO. And when that input comes in,

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 it starts doing everything itself automatically to lower those, that power consumed. Very

242
00:23:00,520 --> 00:23:12,560
 good. Thank you. If there's no further, we entertain a motion to approve this item. I'll

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 give you a second Lee. All those in favor, please say aye. Aye. Aye. Any opposed? Thank

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 you. Okay. So do I need to go to closed now or do I? I believe we do because I think any

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 questions related to those items will be confidential. So we would call the closed, um, under the

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 competitive matters. We'll just pull it up ahead of the schedule. Okay. Uh, yes. And

247
00:23:41,880 --> 00:23:47,720
 then to vote on the items, we'll have to come out of class. Okay. I will convene the closed

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 session at nine 24. We will consider the following items deliberations regarding certain public

249
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 power utilities, competitive matters under Texas government code section 551.086 consultation

250
00:24:00,280 --> 00:24:15,520
 with attorneys under Texas government code section 551.071. Okay. We're back in open

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 session. It is 1004 a.m. Um, first thing we need to do is vote on the consent item B that

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 was pulled that we discussed in closed session. Anybody like to make a motion to approve motion

253
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 to approve? Second. Okay. We have been and then Lee any further discussion? There doesn't

254
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 appear to be any. So all those in favor, please say aye. Aye. Any opposed? Okay. Uh, we discussed

255
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 do we need, we need to take action on item a from the closed meeting. We don't. Okay.

256
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 Just discussion. Gotcha. Then we'll move into our work session. For individual consideration.

257
00:25:04,680 --> 00:25:10,240
 Oh, yeah, I forgot about that. Sorry. Okay. That's that you, David today on items for

258
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 individual other than consider approval of the minutes. June 27 2022. That's me. Move

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 approval. Second. Please say aye. Aye. Okay. Management reports. Great. Good morning, board.

260
00:25:29,680 --> 00:25:33,840
 We have the deck dashboard. You can see there for March 2022. I always have a number of

261
00:25:33,840 --> 00:25:37,600
 me and me staff here to answer any questions you may have on the dashboard. You also see

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 that future agenda items and the new business action items. So, um, are there any questions

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 on the dashboard? Sure. Right back. I have one. It's this appears to only be for the

264
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 first quarter, January through March. Correct. Yeah. Well, the second quarter of fiscal year,

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 first quarter of the calendar year. Yes. However you want to put it, we are in July. I was

266
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 surprised we didn't have second quarter or or we didn't have the next quarter's information.

267
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 Right. It takes a little time for accounting to get everything finalized. So this is typical

268
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 for our kind of lag timing. Okay. Thank you. Yeah. Here to anything further on that item.

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 Future agenda items. Anyone? Doesn't appear to be there either. Lucky y'all new business

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 action items. You can see the listed there. We still have number two listed. That was

271
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 obviously complete with the procurement discussion at the last meeting, I believe. Um, we talked

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 about the one meeting versus two meetings a month and we still have one outstanding item

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 anything further doesn't appear to be. So under concluding items, we can now go into

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 our work session. Receive a report, hold a discussion to give staff direction on proposed

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 water, wastewater, solid waste and electric rates for FYI 20 22 23. Good morning, Chair

276
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 P even members, Nick Vinson, assistant director of finance. I'm gonna do my best to speak

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 up as loud as possible without yelling at you. So if I start yelling, just let me know.

278
00:27:23,920 --> 00:27:32,240
 So. Okay. So before we get started, just kick it off. We have two presentations for you

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 today. The first presentation will summarize the rate changes for the utilities, the ones

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 that we are proposing this year. After this presentation, we will have a financial discussion

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 for the electric fund. Uh, we'll talk to you about electric a little bit. So for the rate

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 presentation, just a really quick overview. Um, you can see we'll talk about the rate

283
00:27:52,320 --> 00:27:57,120
 change history. We'll look at some water wholesale rates that we adjust annually as part of the

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 budgeting process. And then we'll look at some proposed wastewater and solid waste rate

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 changes. Okay, so we show this each year as part of the budgeting process. We are proud

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 of this. It shows some rate history. So for any new PB members that may not have seen

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 it before, I'll walk you through it. Um, so you can see from fiscal year 2016 to 2023,

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 any rate changes for the utilities. Um, you can see rate increases here and rate decreases.

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 You can see the last year we had rate increases for residential or commercial customers and

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 the utilities was fiscal year 2017. Uh, since 2017, we've actually had some rate decreases

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 in 2018 through 2021. Um, last couple of years, we have kept rates the same. I know this was

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 something we discussed during the last couple of meetings about possible rate changes in

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 the future, but we're not looking to make any increases to residential or commercial

294
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 rates this year. So I just want to make sure I pointed that out to the PB. So water wholesale

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 rates, um, these are only two rates we're looking to change in the water utility. Uh,

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 like I'd said earlier, these do update annually as part of the budgeting process. Uh, so the

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 first one being our wholesale raw water rate. Uh, this is, it's set at 85% of the Dallas

298
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 wholesale rate for water. Uh, so this is currently not available, but we did want to bring it

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 to your attention that we will update this. And this is a contractual agreement that we

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 have that this rate does change annually. Um, the next one is there are raw water pass

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 through rate, uh, which is currently before you move on. I apologize. Oh, I'm sorry. I

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00:29:32,960 --> 00:29:40,200
 didn't. Um, so are we actually selling this raw water at these rates? And if so, in general

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 terms to whom, um, probably asked Steven to speak to who we sell the water to. Um, I know

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 we do sell some at these rates, but let me let him speak to the customers. Thank you.

305
00:29:57,800 --> 00:30:02,960
 Good morning. Uh, Steven gay director of water utilities. Yes, we do sell water to the opportunity

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 water, uh, regional water district, and we use these rates for the raw water.

307
00:30:08,440 --> 00:30:30,720
 Thank you. Yep. So do they like take from the lake directly or do we pump water to them?

308
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 They have their own intake. Okay. And that would be all the raw water wholesale. Raw

309
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 water would probably be somebody who buys just directly out of the lake or river. Okay.

310
00:30:39,920 --> 00:30:51,640
 Thank you. Yes, sir. Any other questions? Okay. All right. Does anybody else have questions

311
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 on water? If not, I will move forward. Okay. Um, so wastewater changes looking to make

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 some changes to our dino dirt rates. Um, these are cost of service based adjustments. Just,

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00:31:03,560 --> 00:31:08,200
 um, the price of material using to produce this product has gone up. So we are looking

314
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 to make some increases. The first one being for the pure cubic yard rates of bulk material

315
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 would increase from 25 to 30 this coming year. And then also we sell bags material. We started

316
00:31:20,480 --> 00:31:23,920
 this a couple of fiscal years ago. You may remember we are looking to increase those

317
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 bags from four to $5. So solid waste, we have a few new rates we're looking to introduce

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 and then increasing, uh, maybe an existing rate for unsecured load. So I'll start at

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 the top here, walk you down the list. If you have questions, Eugene is here. He'll be happy

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 to answer, but I definitely get us through the rates part of it. So the first one is

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 an RFID replacement card. We are looking to implement this year. This is new. Uh, this

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00:31:54,680 --> 00:31:58,160
 would be issued to people that routinely visit the landfill and it would recognize their

323
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 vehicle. So, um, that's what this rate is for. Um, the first one is, uh, sorry, go ahead.

324
00:32:06,560 --> 00:32:16,160
 Um, it is, it's almost like a, I'm trying to think what that stands for. Yeah, absolutely.

325
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 That's, did you hear that? Radio frequency identification. Yeah. Yeah. Yeah, we should

326
00:32:22,520 --> 00:32:27,320
 have spelled that out here. Um, the, the next one is the unsecured load. So currently we

327
00:32:27,320 --> 00:32:32,880
 do charge customers that come into the landfill facility without a cover, a $20 fee. We are

328
00:32:32,880 --> 00:32:37,360
 looking to increase that to 25. Uh, when they do pay that fee, they would be issued a tarp

329
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 and some bungee cords to secure their loads. So just wanted to point that out. Uh, we are

330
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 looking to implement a second or a subsequent unsecured load fee of $30. I mean, you can't

331
00:32:47,860 --> 00:32:53,720
 see that for you right here. And then looking to, um, implement a wait ticket rate. So for

332
00:32:53,720 --> 00:32:58,480
 non-cited vehicles of $5. So someone wants their vehicle weighed, we would charge them

333
00:32:58,480 --> 00:33:05,440
 a rate for that service. Um, the live load fee minimum of 15 minute charge is $75 an

334
00:33:05,440 --> 00:33:10,420
 hour with a minimum of 15 minutes. Uh, we are looking to implement this year. If a driver

335
00:33:10,420 --> 00:33:15,360
 has to wait for a customer to load a container, that's what this fee would be for. Then Barbara,

336
00:33:15,360 --> 00:33:20,600
 did you have a question? No, I, you, you answered that. I was going to ask what a live load

337
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 would be. And then, uh, construction and demolition rate is $65 a ton. I know Brian had talked

338
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 to the solid waste comprehensive plan earlier. This does go hand in hand with this trying

339
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 to divert that material. So I want to make sure we pointed that out. Um, the shingles

340
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 rate is $125 a ton. We are looking to implement a shingles rate. It is a hard material to

341
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 handle at the landfill. I know Eugene can talk to it more, but we are looking to get

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00:33:44,240 --> 00:33:49,560
 this in rate ordinance. Yeah. I have a question about that. Yeah. So is it, is it actually

343
00:33:49,560 --> 00:33:52,880
 something you're processing there or you're hiring somebody to process or are you shipping

344
00:33:52,880 --> 00:34:07,040
 that shingles, the shingles off? Let me ask Eugene to explain their current process. Good

345
00:34:07,040 --> 00:34:10,960
 morning board members. My name is Eugene McKenna. I'm deputy director of solid waste recycling.

346
00:34:10,960 --> 00:34:15,840
 I believe the question is, are we processing it there? Yeah. Are you processing it there

347
00:34:15,840 --> 00:34:22,440
 or are you shipping it off or what? No, currently it comes in and it's landfilled. It's landfilled.

348
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 Just raw like it comes in. And it's raw. And the strategy will help us identify processors

349
00:34:28,200 --> 00:34:34,840
 for this. Um, you know, when you materials like shingles and C and D, you know, when

350
00:34:34,840 --> 00:34:39,800
 you landfill it, you know, the byproduct is methane, right? This creates nothing. It just

351
00:34:39,800 --> 00:34:44,360
 takes up space in the landfill. So we're talking about some diversion opportunities.

352
00:34:44,360 --> 00:34:48,960
 So that's where we're at with that. Okay. And so these, these are any, these are always

353
00:34:48,960 --> 00:34:55,620
 tear offs I would imagine, right? They're not, they're not rejects from the manufacturer.

354
00:34:55,620 --> 00:35:01,440
 I've never seen that normally, you know, a roofing job and things come in like that,

355
00:35:01,440 --> 00:35:06,760
 but I've never seen a load of more like rejects. Shingles are recycled into some other product,

356
00:35:06,760 --> 00:35:13,240
 you know, asphalt and, and absolutely. And the plan will help us identify these companies

357
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 that will possibly come here and we can find locally that'll help, you know, recycle it.

358
00:35:19,360 --> 00:35:22,120
 So it gets another life somewhere other than just landfill. Another part of the strategy

359
00:35:22,120 --> 00:35:30,840
 then. Okay. Absolutely. Okay. Cool. Thank you. This $75, I'm sorry, $125 a ton. Are we going

360
00:35:30,840 --> 00:35:36,080
 to get that from site a single house? Is there a ton of shingles on one house torn off or

361
00:35:36,080 --> 00:35:40,760
 is that just a minimum rate no matter what they bring in? Well, that's the minimum what

362
00:35:40,760 --> 00:35:48,440
 they bring in. Okay. So it's under a ton. Okay. Yes. Thanks. Yes, sir. Since these are

363
00:35:48,440 --> 00:35:55,760
 proposed for upcoming year, what kind of a total budget impact are we anticipating from

364
00:35:55,760 --> 00:36:03,480
 these new fees? Well, not sure if that's a Nick question, that he's got all the money

365
00:36:03,480 --> 00:36:14,280
 in his pocket. Yes, sir. Thank you. I don't have the exact number right now, Mr. Rybak.

366
00:36:14,280 --> 00:36:18,880
 These are included in the proposed budget that you saw already, but I would think the total

367
00:36:18,880 --> 00:36:22,800
 impact would be minimal, but we can get that number to you. I don't, I don't have it today

368
00:36:22,800 --> 00:36:32,840
 though. Thank you. Appreciate it. You're welcome. Okay. We will continue on. So won't go through

369
00:36:32,840 --> 00:36:36,680
 the calendar again with you. You've seen it again. So next PV meeting, we will be seeking

370
00:36:36,680 --> 00:36:42,240
 your approval for each of the operating budgets for the utilities and the rates. We are scheduled

371
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 to present those to city council next Tuesday. So that concludes this presentation. Nick,

372
00:36:51,920 --> 00:36:55,480
 if I could jump in real quick, I know Nick had that slide at the beginning talking about

373
00:36:55,480 --> 00:36:58,080
 our rates over the past five years, and we talked about it a little bit in the budget

374
00:36:58,080 --> 00:37:02,480
 presentations last year, but I just don't want it to be lost as we have these discussions,

375
00:37:02,480 --> 00:37:07,200
 the fact that we don't have rate increases again this year across utilities. If you just

376
00:37:07,200 --> 00:37:12,920
 look at articles right now, MOUs out in Texas, especially on the electric side, rates are

377
00:37:12,920 --> 00:37:17,160
 just increasing for everyone. So it's a really achievement from the staff, from everyone that

378
00:37:17,160 --> 00:37:25,360
 we have another year of rate increases. So just want to point that out again. All right.

379
00:37:25,360 --> 00:37:30,680
 And then Billy, that's this item. You may want to call the next item if you don't mind

380
00:37:30,680 --> 00:37:37,520
 for the electric presentation. Oh, it is another item. Sorry. Yes, sir. Okay. Item work session

381
00:37:37,520 --> 00:37:42,040
 item B, receive a report, hold a discussion, and give staff direction regarding the electric

382
00:37:42,040 --> 00:37:48,440
 FY 22-23 preliminary budget, capital improvement program, and five-year financial forecast.

383
00:37:48,440 --> 00:37:53,320
 Okay. So Nick Vinson again, Assistant Director of Finance, walking through the electric budget

384
00:37:53,320 --> 00:37:57,920
 presentation. We have removed the operational slides from this presentation. If you have

385
00:37:57,920 --> 00:38:01,560
 an operational question, of course, there's plenty of DME people would be happy to speak

386
00:38:01,560 --> 00:38:05,320
 to it. But we'll walk us through the financials, explain some updates that we've had since

387
00:38:05,320 --> 00:38:14,780
 the last time we talked to you, and then answer any questions that you may have. So this is

388
00:38:14,780 --> 00:38:19,280
 really just an overview of the presentation. We will talk about the pro forma. We'll look

389
00:38:19,280 --> 00:38:23,060
 at the pro forma together. I'll point out some changes. We'll look at that fund balance

390
00:38:23,060 --> 00:38:29,320
 and look at some operating expenses. The capital budget, we did talk in great detail last meeting.

391
00:38:29,320 --> 00:38:32,660
 If you remember about the capital budget, we'll just hit on it in this presentation

392
00:38:32,660 --> 00:38:38,700
 with one slide. So if you have questions or want to see a more detailed capital budget,

393
00:38:38,700 --> 00:38:41,960
 please refer to that book that was submitted to you last time, and we're happy to provide

394
00:38:41,960 --> 00:38:49,000
 it again if you can't find it. So financial assumptions, we saw this at the last meeting,

395
00:38:49,000 --> 00:38:52,760
 but just walk you through really quick. So the forecast is based on retail sales, which

396
00:38:52,760 --> 00:38:59,080
 is megawatt hours. You can see the MWH. Revenue projections of 2 to 3 percent increase, which

397
00:38:59,080 --> 00:39:03,120
 is consistent across the utilities, something we talked about several times over the last

398
00:39:03,120 --> 00:39:07,920
 couple meetings. Expenses, we do have the ROI, so the return on investment going to

399
00:39:07,920 --> 00:39:12,000
 the general fund remaining at 6 percent. I believe we discussed that last time, but I

400
00:39:12,000 --> 00:39:17,200
 wanted to point that out just in case. The TMRS rate, which is the Texas Municipal Retirement

401
00:39:17,200 --> 00:39:24,520
 System, that rate increasing from 17.65 to 18.15. So that's something we were notified

402
00:39:24,520 --> 00:39:29,160
 through our last meeting that we updated on this pro forma. The capital budget, we did

403
00:39:29,160 --> 00:39:34,160
 change one project that was previously submitted to you. We removed the DME backup center from

404
00:39:34,160 --> 00:39:39,880
 the capital budget. So that is no longer reflected in here. And then the summer and winter outage

405
00:39:39,880 --> 00:39:45,320
 insurance premium increase of 900,000. So that was a pretty fairly large increase. We

406
00:39:45,320 --> 00:39:50,600
 wanted to make sure we pointed that out to you. Mr. Ryback, yes, sir?

407
00:39:50,600 --> 00:39:55,920
 Yes, I was curious about removing the DME backup center. Is it something that's going

408
00:39:55,920 --> 00:40:00,880
 to come up then in the future year? So let me ask Mr. Filder, probably the best

409
00:40:00,880 --> 00:40:11,080
 one to talk about that. Yes, sir. Excuse me. Yes, sir, we did remove

410
00:40:11,080 --> 00:40:20,560
 it. Other options came out, like maybe spreading this out to kind of an offsite deal or contracting

411
00:40:20,560 --> 00:40:26,000
 this service out to other folks. That way we can have a little bit of geographical distance

412
00:40:26,000 --> 00:40:29,640
 between Ditten and wherever the backup data center is. So we're going to hand it back

413
00:40:29,640 --> 00:40:32,080
 to the budget at this time. Thank you.

414
00:40:32,080 --> 00:40:36,720
 I would also add to that DME has worked closely with tech services on thinking through the

415
00:40:36,720 --> 00:40:41,160
 best options, as you already mentioned. So really worked together to come up with different

416
00:40:41,160 --> 00:40:46,640
 ways to provide the service. Provide that. Gotcha. Thank you.

417
00:40:46,640 --> 00:40:52,640
 Okay, I will keep going. So supplemental requests, those new initiatives or new positions being

418
00:40:52,640 --> 00:40:57,840
 requested by this utility, 1.8 million, and I'll point those out to you on the pro forma

419
00:40:57,840 --> 00:41:02,760
 here shortly. And then you can see the positions that make up the majority of that amount,

420
00:41:02,760 --> 00:41:06,240
 11 FTEs this coming fiscal year, and you can see them listed out here at the bottom of

421
00:41:06,240 --> 00:41:13,080
 the slide. Okay, so the five-year forecast for the electric

422
00:41:13,080 --> 00:41:17,480
 utility, as I mentioned last time, we do plan in a 10-year window. We are showing you five

423
00:41:17,480 --> 00:41:21,360
 years here. Just with those purchase power expenses, the further you get out, the less

424
00:41:21,360 --> 00:41:24,440
 accurate it becomes. So we're showing you five years here, but just want to point out

425
00:41:24,440 --> 00:41:28,400
 that we do have a 10-year pro forma. So the adopted budget, so the current fiscal year

426
00:41:28,400 --> 00:41:35,600
 that we are in here, you can see the revenues that we included in the budget of 245.7 million.

427
00:41:35,600 --> 00:41:42,080
 Expenses of 240.7, so net income of 5 million or 4.9. Going into the end of your estimate,

428
00:41:42,080 --> 00:41:48,560
 you can see revenues of 308.5 and expenses of 291 million. So one thing I did want to

429
00:41:48,560 --> 00:41:52,760
 point out, I know there's been a lot of conversation with Terry today about the energy market today

430
00:41:52,760 --> 00:41:57,800
 and the pricing of such. This pro forma does not reflect those prices, so we will update

431
00:41:57,800 --> 00:42:00,680
 this and we can always bring it back to you in the future to update you for the end of

432
00:42:00,680 --> 00:42:04,840
 your estimate. So there is a good possibility that the electric utility will need a budget

433
00:42:04,840 --> 00:42:09,280
 amendment this fiscal year to accommodate those energy purchases, so just wanted to make

434
00:42:09,280 --> 00:42:17,440
 sure I said that. Fiscal year 2023, you can see here what we're proposing, so 399.9 million

435
00:42:17,440 --> 00:42:25,760
 in revenue, that makes that number right here. Expenses of 415.9, so showing the increase

436
00:42:25,760 --> 00:42:30,840
 in energy purchases, also associated with the data center. So we talked about the data

437
00:42:30,840 --> 00:42:34,560
 center last time being included, which has increased the revenue and expenses for this

438
00:42:34,560 --> 00:42:46,200
 upcoming fiscal year. Yes, sir. So what's our current requirement for operating reserve?

439
00:42:46,200 --> 00:42:50,440
 What percentage are we supposed to be keeping? Great question. So we looked at it last year

440
00:42:50,440 --> 00:42:55,640
 and actually revised it. I'm sure you remember that the 46% is the minimum and 69% is the

441
00:42:55,640 --> 00:43:00,640
 max that we'd like to see in there. And then it's down here, Billy, to answer your question.

442
00:43:00,640 --> 00:43:08,160
 So what does 46% equate to? It's 126.2 and then 189 million for the top. So you can see

443
00:43:08,160 --> 00:43:19,680
 we're currently at 120.9, is what we're forecasting. Good. That's great. And of course, Mr. Rybeck.

444
00:43:19,680 --> 00:43:24,720
 You anticipated. Well, I kind of got the side view, I thought you were reaching for it.

445
00:43:24,720 --> 00:43:28,560
 Well thank you for that. I'm having a little trouble trying to look at the numbers here

446
00:43:28,560 --> 00:43:38,640
 on my iPad. So is the non-debt service the $37 million number from '21? And the debt

447
00:43:38,640 --> 00:43:47,320
 is the $17 million or is the debt the no cost? No, the debt service is 17.2 in 2021. And

448
00:43:47,320 --> 00:43:52,840
 then non-debt, so for those other infrastructure assets that we have, is 37. Yeah. Well, my

449
00:43:52,840 --> 00:43:58,480
 question actually is about the debt. It appears to be fairly static over the pro forma form.

450
00:43:58,480 --> 00:44:03,960
 Is there a time frame at which that's going to run out or will we be done paying for it

451
00:44:03,960 --> 00:44:12,360
 in 10 years, 20 years, seven years, or does anyone know for sure? Do you know the? There

452
00:44:12,360 --> 00:44:18,080
 was 30 year debt. I'm not so exact. Probably about 28 years left or 27. I'm at the top

453
00:44:18,080 --> 00:44:23,120
 of my head. Thank you. Yeah. We can get that date to you. Not terribly important. I was

454
00:44:23,120 --> 00:44:28,040
 just captured by curiosity that it seemed to be pretty static. I was like, okay, that's

455
00:44:28,040 --> 00:44:33,000
 long term debt. So I wondered what the time frame. It actually is 20 year debt because

456
00:44:33,000 --> 00:44:38,240
 we did revenue bonds for that. So it's about 17 years, I would guess, left on that. Okay.

457
00:44:38,240 --> 00:44:43,400
 So that's from, that's the debt repayment for the bond. Correct. Thank you. Yeah. For

458
00:44:43,400 --> 00:44:55,080
 the construction of that facility. Yeah. Okay. Perfect. So the T cost is still based on 30

459
00:44:55,080 --> 00:45:00,320
 year debt no matter how we structure our own debt, right? Well, that's part of the discussion

460
00:45:00,320 --> 00:45:06,120
 we're having right now as we go through the rate case, but it is tied to that. Okay. That's

461
00:45:06,120 --> 00:45:12,400
 probably closed session. Yeah. Sorry. Yeah. I was looking at David for that one. I was

462
00:45:12,400 --> 00:45:19,120
 like, I don't know how you want to answer it. Okay. So the forecast here, so 0% rate increases

463
00:45:19,120 --> 00:45:23,400
 for this year. I just wanted to mention, you know, in the future if purchase power expenses

464
00:45:23,400 --> 00:45:27,120
 do stay the way we're seeing them currently, we may have to talk about the rate structure

465
00:45:27,120 --> 00:45:31,720
 with the PV next year and that ECA rate. So just wanted to mention that it is reflected

466
00:45:31,720 --> 00:45:36,440
 on the pro forma here, but just wanted to put that out there for you. So I'll move on

467
00:45:36,440 --> 00:45:42,200
 unless you have questions. So the capital budget really high level here. Like I said,

468
00:45:42,200 --> 00:45:46,460
 we got into the detail of it last meeting, but just wanted to recap it really quick since

469
00:45:46,460 --> 00:45:53,000
 we removed that data center project. So 72.9 million in debt funded projects, revenue funding

470
00:45:53,000 --> 00:45:57,760
 about 1.1, aid in construction. So from some contributions from different projects around

471
00:45:57,760 --> 00:46:08,240
 the city for 79.7 million in 2023. And here is a summary and how it breaks out into the

472
00:46:08,240 --> 00:46:13,640
 different categories. So we do put it into categories to help us with tracking and some

473
00:46:13,640 --> 00:46:18,380
 of our T cost return items. So we just wanted to be sure to point it out. So you can see

474
00:46:18,380 --> 00:46:24,600
 we do have several different things here. Distribution substations, distribution transformers,

475
00:46:24,600 --> 00:46:28,600
 some new residential commercial budgeted and then you can see transmission down here at

476
00:46:28,600 --> 00:46:37,800
 the second portion of the table for 28.2. And this is the table or the calendar. I won't

477
00:46:37,800 --> 00:46:41,120
 go through it again with you, but it is here for your reference. And that is the end of

478
00:46:41,120 --> 00:46:52,080
 the presentation. Any questions on electric? >> Do you have a question, Barbara? Your lights

479
00:46:52,080 --> 00:46:58,440
 on. That's why I'm asking. No? Okay. Anyone? I think we got them all out. Thank you.

480
00:46:58,440 --> 00:47:02,800
 >> Perfect. Thank you. >> That's all we have today. And for the first

481
00:47:02,800 --> 00:47:09,120
 time I'm going to let somebody else make the motion to adjourn. Mr. Beck, we're all in.

482
00:47:09,120 --> 00:47:13,600
 I think that's all it requires anyway.