WEBVTT

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 Good morning. I'd like to call the Public Utility Board meeting for the City of Denton

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 Monday August 8th, 2022 to order. First item is going to be, are there any presentations

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 from the members of the public? I didn't see any comments or anything. So we'll move on

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 to the consent agenda. I already have requests from Mr. Ryback to pull D, E and G. Yes sir.

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 Are there any others? Okay, if you'd like, we'll entertain a motion to approve A, B, C, F, H, I, J, K, L for approval. So moved. Motion second. All those in favor please say I. I.

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 Any opposed? Okay, let's go to item D, Mr. Ryback. I just wanted to get some more information

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 on this. I know the City Council had a meeting on Saturday and may have reviewed this in

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 more detail, but I'd just like to get a little update on this. Thank you. Board, board members

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 or chair, board members, Krista Foster, customer service manager. Items D and E are actually

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 not budget related. Our meeting Saturday was the budget workshop. This is simply Texhoma

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 Council of Governments has federal funding that they currently have in place with us.

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 Our customers have access to utility assistance for electric. They have now found a funding

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 source to be able to assist our customers with water bills and we have to bring that

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 forward for approval. Item E is simply asking for an ordinance that says as long as we're

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 working with a nonprofit or governmental agency that is funding assistance for our customers

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 at no cost to the city, that we authorize the city manager to be able to execute those

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 so that we can do them in a more timely and efficient manner to be able to get our customers

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 access. So what is the funding source? I do not know. That's TCOG has that funding source.

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 It is a federal source that they have. Okay. So these are federal funds that are being

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 managed by? By the Texhoma Council of Governments. Correct. Yeah. The agreement is just confirming

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 that we understand how we have to apply and use those funds when we receive them. So we

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 do not yet know what the amount of those funds will be? We would not know what their funding

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 is. We don't with their electric sources. We don't know what their funding sources are.

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 They manage their budgets for that. This is why I have trouble with these. I'm like, okay,

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 there's money coming from somewhere. We don't seem to know how much it is. We don't seem

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 to know who it's from. It's the same as... You're asking us to approve this going forward

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 and I just left me a little... We're not approving any actual fund expenditures. It's the same

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 as if our daily bread or another community service group provides funds to pay for electric

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 bills. It's just that with certain ones, sometimes it can be a FEMA program, sometimes it could

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 be a Texhoma Council of Governments that because of stipulations that they have to follow in

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 order to receive funds, they have to do a vendor agreement that says we understand when

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 they send us money, this is how we're to use it. That's the only thing we're looking at

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 is how we apply those funds. Well, back to my question. So there's an amount of money.

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 We don't know what it is. We presume the funding source to be federal, but all we know is it's

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 being managed by this Texhoma Council of Governments. Correct. Really, we don't look at their budget.

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 We don't look at their budget. They manage that and determine... But they also are not

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 advising you what the budget amount for us to use will be. We won't be receiving that

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 type of funds. The customer applies through their program, goes through all of the documentation

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 process and is approved or denied by Texhoma Council of Governments, and they simply write

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 a check and send it to us. Okay. So essentially, we are a conduit for this funding. We are

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 not actually managing or handling this money. Correct. We'll see. Now, that was not clear

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 from this write-up. If I could add something, Tiffany Thompson, Director of Customer Service

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 and Animal Services, we've been receiving these funds for several years. This is also

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 just... Legal wanted to also have an executed contract on behalf of the city manager as

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 well. So we're just trying to be transparent that we've received these funds on behalf

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 of customers for several years. We're just making sure that we have it on the books that

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 the city manager can execute this contract. So we get funds on behalf of the customers

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 for several years. We just want to make sure that you're aware of it and then also with

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 the additional to the water as well. Well, I was not aware of it until now. So we don't

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 know how much because they could say, "We want to pledge $100." Also, we're not handling

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 the money. That was also not clear in this. So the customer client, our current electric

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 or water customer separately applies to the Texoma Council of Governments. We simply make

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 them aware of the program. Is that essentially what goes on? Sometimes we make them aware

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 of the program. Sometimes they are referred from another agency to that program. Basically,

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 we are just... They'll write a check to say, "This is going to cover this particular account

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 for X number of dollars." And we are receiving and applying the money on behalf of the customer.

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 Okay. So we do handle money. We do receive the funds from Texoma based on the application

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 from the customer. Correct. Okay. Again, it's the same as if someone does go to our daily

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 bread or interfaith ministries. They manage what their budget is. Now, we put funds into

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 interfaith ministries, right? But they manage it. They determine the qualification guidelines

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 and they determine if they have funds available to distribute. And then if they do, then they

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 would make that determination and we just receive them. When you're looking at something

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 like one of these agreements, typically the funding sources that require those types of

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 agreements simply states, for the case of TCOG, that if that customer terminates services

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 and part of that credit is money that came from this funding source, that we're pulling

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 that back out and we're going to provide that back to them so that we know that... Or they

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 know that it went to the actual bill. It's small things like that is what they require

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 the agreement for. Okay. Thank you. Here we go. I thought I saw you turn it on. Okay,

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 so my understanding, and there's no strings attached here to this money, the intent is

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 to help low-income families and they can either apply for it if they're aware of the program

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 or can something be done on DME's end where we see there's a need out there in the community

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 and we alert them to them and help process the... We do some of both. Okay. First line

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 of resource for our customers is we will refer them through Interfaith Ministries or United

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 Way based on what program guidelines there are because we know that we have an established

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 relationship with both of those entities. If for some reason they have exceeded the number

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 of assistance referrals from Interfaith or through United Way, they also provide a list

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 of other funding sources that the customer may qualify for. If the customer does not

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 want us to provide them a referral to Interfaith or United Way, we also will provide them a

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 list that tells them the different places that they can go to look for assistance. So

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 we are looking for those things to try to help our customers. So if you see a homeowner

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 that's missing payments, that would be a red flag for y'all to get them active? Typically

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 it's when they contact us and they're expressing that difficulty or we're seeing that in their

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 payment history that we will initiate those conversations. Got you. Thank you. So is it

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 fair to say that D&E are basically, it seems like we're just talking about allowing a third

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 party to pay a bill, a utility bill. That is correct. And we're just defining who that

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 third party is and saying that it's okay. And saying that it's okay. Because for us

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 to come through the entire approval process, we're delaying customers access to those funds

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 for up to eight, 10 weeks sometimes. Okay. So this would allow us to more quickly get

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 that revenue stream for customers. Okay. We're good. Okay. Can we do the, can we take these

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 three together? Review them? Ask the questions about F and then do D&F together? Yeah. Unless

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 somebody pulls out, or D&G, excuse me. Yeah. We need to talk about G first. So just making

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 sure that's okay. Okay. Mr. Rabat, you had G also. Yes. I have a G question. Good morning.

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 Jerry Luper, Division Manager System Operations, DME. Well, thank you for coming this morning.

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 I'm sure it was on short notice. I apologize for that. I'm curious about this contract,

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 not because of the amount or, but because of the work on the contract. I'm very familiar

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 with Burns and McDonald's as an engineering firm. No problem with that. This looks more

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 like a master systems integration kind of contract and I am not familiar with them having

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 those skills, attributes and personnel. So I'm a little curious about why we're retaining

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 an engineering firm to do a master systems integration project. So if you could help

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 me out there. Yes. So right now we have three engineering firms in our professional services,

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 engineering professional services. Out of those three, two provide some technology support,

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 Powers Engineer and Burns and McDonald's. Burns and Mack have an edge there with the

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 owner's engineer contract and they've already done a couple of large scale utility network

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 migrations. So we've chosen them to be the owner's engineer for a massive program or

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 massive projects going to be spanned the next two to three years. It did look that way from

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 the write up. It is and we'll try to contract Powers to actually do the conversion, Burns

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 and Mack to oversee it. Okay. So Burns and McDonald's is serving as the overseer or manager

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 of this process rather than as the implementer of the process. Yes sir. Okay. Well that makes

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 a lot more sense to me. Thank you very much. Yes sir. Okay. Looks like there's nobody else.

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 I entertain a motion to approve DENG. So moved. Second. You got a second down here with them.

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 All those in favor please say aye. Aye. Now we are at items for individual consideration.

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 Consider approval of the July 25, 2022 minutes. Move to approve. Second. All those in favor

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 please say aye. Aye. Opposed say the same. Item B is consider recommending adoption of

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 an ordinance of the City of Denton. Establishing the reach for water and water services repealing

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 ordinance number 21-2112. It's a rush album. Providing for repealer. Providing for a severability

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 clause and providing an effective date. Good morning PUB members. Danielle Stanford and

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 her own budget manager. We're just seeking your approval this morning for the utility

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 rates. We do have a presentation if you have questions but we are just seeking approval

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 this morning. Ma'am could you move the microphone a little more in line with your voice? Yes.

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 Was there any discussion? Any questions? No? If not I'm going to entertain a motion for

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 item B. Got a movement down here from Ben. Second. Second from Larry. Thank you. All

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 those in favor please say aye. Aye. Item number C consider recommending adoption of an ordinance

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 of the City of Denton, Texas. Establishing the schedule of rates and fees for wastewater

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 service. Repealing ordinance number 21-2113. Providing for repealer. Providing for a severability

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 clause and providing an effective date. Same thing here. Just seeking approval. We do have

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 a presentation if you have questions. Got a question first Mr. Rebett? No it was first.

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 I would like to see your presentation if you have it available. Sure no problem. Thank

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 you. Thank you. So this is just quickly going through the presentation objectives. The rate

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 change history. The water wholesale rates. The wastewater rate changes. And the solid

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 waste rate changes. And then next steps. This table just shows our rate history since 2016.

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 There have been no rate increases for the City of Denton utilities since 2016. The water

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 wholesale rates. You will notice these rates have changed for the 22-23 proposed budget

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 since the last time you saw this. These rates were not available during our last presentation

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 to PUB. Since then the data from the City of Dallas has become available so these 22-23

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 rates are reflective of that. Wastewater rates have not changed since you last seen this

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 presentation. We only have two. The dino dirt per cubic yard and the dino dirt bagged per

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 cubic foot. Solid waste did have a handful of changes. These have not changed since the

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 last presentation. And then our next steps. This slide is dated but we did have our budget

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 workshop on Saturday and then we will take these to council for approval on September

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 27th. I'm just curious the raw waste, the raw water, is that from Dallas or to Dallas?

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 This is from Dallas. This is our pass-through rate. So that's what they're charging us.

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 Steven is going to come up. Good morning PUB member Rybeck. The wholesale water rate is

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 actually what we sell. We sell upper Trinity from our resources in Ray Robertson Lake Louisville.

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 So we are selling this. Yes sir. And we base that rate off of 85% of what the Dallas raw

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 water rate is. That's how Dallas gets into the conversation. Very good. Thank you so

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 much. We do have a member of the board, Devin, you are a raw water guy. Do you have any comments

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 or thoughts about this? I know these look like they're probably in line for large industrial

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 use of wastewater. Thank you. Thank you. Any other questions? One more. Move approval down

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 here and down here. I have one more question. Oh I'm sorry I thought you said move approval.

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 So I think two slides down on the solid waste. Yes sir. The construction and demolition rate,

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 that's a new rate, right? Doesn't exist in the previous rates? That is a new rate, yes

00:17:05.960 --> 00:17:10.840
 sir. I think I might have just found a minor clear clear then. The red line version shows

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 it as if it's not new, like it's just already in the body of the ordinance. Okay. So I think

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 maybe I just got like a bad red line. Sure we can follow up on that. Okay. Devin's moved

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 approval. Anyone? Lee? Lee, you got a second down here? All those in favor please say aye.

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 Aye. Motion passes. Thank you. Are you Dee also? I am. Okay. Consider recommending adoption

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 of an ordinance of the City of Denton, Texas establishing the rates and fees for solid

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 waste and recycling collection service, providing further information regarding such collection

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 and establishing indemnity of the city, incorporating and applying sections 26.3, 26.4, 26.5, 26.7,

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 26.8, and 26.9 of article one of chapter 26 of the City of Denton ordinances repealing

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 ordinance number 21-2114, providing for repealer, providing for a severability clause, and providing

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 an effective date. I guess this is very similar, the minor changes here. Anybody want to see

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 the? It's the same presentation. This is for the slide that's shown now. Oh, okay. Sorry.

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 I have a motion. Larry the second. All those in favor please say aye. Aye. Any opposed?

00:18:45.320 --> 00:18:51.800
 Motion passes. Okay. E's management reports. Is that you, Tony? Yes, sir. So, Mr. Chair,

00:18:51.800 --> 00:18:58.440
 members of the Board, we have a couple items for you in the management update today. So

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 we have an on-call storm water services and CIP and engineering contract that went to

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 the council before it came here. And so we're now bringing it back to you kind of per the

00:19:08.480 --> 00:19:12.320
 procedure that we had established with you. We have some staff here if you have, if anyone

00:19:12.320 --> 00:19:20.480
 has any questions regarding that particular item. Okay. The next item that we have here

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 is just, I previously emailed all of you, but DME was awarded the 2022 system achievement

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 award by TPPA for achieving 100% renewal. Actually it was 101%, right? Renewable offset of our

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 total load with wind and solar power. And so we did receive that award and we were co-recipients

00:19:40.080 --> 00:19:44.080
 with the city of Bourne. I think I mentioned to you in my notice, you know, it's interesting

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 because the city manager of Bourne actually started off as an intern here in the city

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 of Denton. So it was good to see him again and remind him that we didn't hire him in

00:19:52.160 --> 00:19:56.880
 the finance department when I was in finance. But it was all in fun. Now he's the city manager,

00:19:56.880 --> 00:20:01.520
 right? I think he, I think he fared pretty well. So, but, but it was, it was nice sharing

00:20:01.520 --> 00:20:05.440
 that award with them. And certainly we've listed for you the past recipients. So we're

00:20:05.440 --> 00:20:11.760
 certainly in a, in a very good crowd of other utilities in this achievement. The next item

00:20:11.760 --> 00:20:16.600
 that we have for you is a feature agenda items. Again, now, now that we've kind of gone through

00:20:16.600 --> 00:20:24.080
 the budget, yes, sir. Before we move on, can we at least say congratulations? Yeah. Congratulations.

00:20:24.080 --> 00:20:28.160
 Thank you. Thank you. Yeah. And when I say, you know, we accepted that internally on behalf

00:20:28.160 --> 00:20:32.360
 of our community that, that established that goal, but certainly all the work of, of our

00:20:32.360 --> 00:20:38.040
 DME staff in making sure that we had the contracts in place and, and we worked very closely with

00:20:38.040 --> 00:20:43.640
 the city auditor and making sure that we, that we were doing that correctly. And anyway,

00:20:43.640 --> 00:20:48.560
 so thank you for that. So a feature agenda items now that we've gotten past the budget,

00:20:48.560 --> 00:20:52.120
 we don't have a whole lot of stuff here for you, but there's certainly a number of items

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 that we'll continue to populate for you. So August 22nd, there's a discussion with you

00:20:59.880 --> 00:21:07.720
 about some water related items also associated with the army corps of engineers. September

00:21:07.720 --> 00:21:13.760
 12th, we have some discussion with you as well about water rights. And it sounds like

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 this is all things that Stephen gay and his staff will, will be bringing forward to you.

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 But I think as those items continue to, to, to bubble up, we'll, we'll try to give you

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 advanced notice of what's coming in the future meetings. And then finally, under the new

00:21:27.320 --> 00:21:33.160
 business there, you know, we still have the one particular item. I can assure you that

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 we keep saying that every meeting we are working on that. We're getting closer to that. We

00:21:37.520 --> 00:21:43.080
 anticipate going to the sustainability committee sometime at the end of this month with a presentation.

00:21:43.080 --> 00:21:48.400
 I know there was a question that Mr. jumper asked, I'm assuming the last meeting regarding

00:21:48.400 --> 00:21:53.120
 potentially increasing the budget for, for solar rebates. That's certainly an option

00:21:53.120 --> 00:21:58.640
 that we'll be discussing with the sustainability framework advisory committee and then bringing

00:21:58.640 --> 00:22:04.040
 that to you and ultimately to the council and seeking direction. And so, you know, our

00:22:04.040 --> 00:22:10.400
 plan is to certainly have a number of different options for your consideration. Certainly

00:22:10.400 --> 00:22:15.240
 any increase to the budget, certainly if it's an increase to DME, as, as you are very well

00:22:15.240 --> 00:22:21.320
 aware starting next year, there is a plan drawdown of reserves already. So likely any

00:22:21.320 --> 00:22:26.160
 additional increase in budgets may mean some type of rate increase. That'll certainly something

00:22:26.160 --> 00:22:32.760
 for you to consider. We also have now another pot of money associated with franchise fees

00:22:32.760 --> 00:22:39.560
 all rise from the data center that's going into a sustainability fund, $4 million plan

00:22:39.560 --> 00:22:44.400
 for that for next year. That'll also, I think, be part of that conversation. But so again,

00:22:44.400 --> 00:22:48.040
 we're developing that. I think that that through that presentation, we'll be able to respond

00:22:48.040 --> 00:22:53.200
 to, to both of these items that, that are here on, on a new business action. So, so

00:22:53.200 --> 00:22:55.680
 with that, I'll surely stand for any questions that you may have.

00:22:55.680 --> 00:23:00.800
 Just want to look at on the back of that, Tony, are y'all seeing a DME, a significant

00:23:00.800 --> 00:23:06.800
 uptick in application for solar panels compared to previous years?

00:23:06.800 --> 00:23:11.840
 I think, I think the short answer is absolutely. I think part of the challenge that we're having

00:23:11.840 --> 00:23:18.680
 is that, you know, so we've dedicated $500,000 out of our budget for solar rebates. What

00:23:18.680 --> 00:23:24.200
 I can tell you is that right now, half of the solar installations that go into the city

00:23:24.200 --> 00:23:29.880
 go in without the solar rebate. And so I think from my perspective, you know, you can carve

00:23:29.880 --> 00:23:35.480
 up that $500,000 as much as you want. You can certainly add additional money. But what

00:23:35.480 --> 00:23:41.320
 I can tell you is that the initial, the original intention of those rebates was because the

00:23:41.320 --> 00:23:46.400
 cost of solar panels was considerably much higher, actually twice the cost that they

00:23:46.400 --> 00:23:53.920
 are today. So the same system today that cost 20 to 30,000 used to cost 50 to $60,000. So

00:23:53.920 --> 00:24:00.800
 the market and the pricing for that has certainly come down and made it far more affordable.

00:24:00.800 --> 00:24:05.440
 You could add, like I said, you can add additional money to that budget. But the issue is that

00:24:05.440 --> 00:24:11.120
 there's always going to be someone left out from that rebate, right? And so I think from

00:24:11.120 --> 00:24:15.720
 our perspective, and I'm probably going to get a little bit ahead of myself here, right?

00:24:15.720 --> 00:24:19.720
 From our perspective is when you're talking about energy efficiency, right, I think we

00:24:19.720 --> 00:24:26.240
 got to recognize one, we're already in a 100% renewable energy community, right, by the

00:24:26.240 --> 00:24:30.640
 goal that was established and what we've achieved. And then second of all, there's likely other

00:24:30.640 --> 00:24:37.480
 initiatives, even within our existing green sense program, there may be a bigger bang

00:24:37.480 --> 00:24:42.360
 for our buck. And then finally, the other thing that comes into play here is the issue

00:24:42.360 --> 00:24:48.280
 of who is able to install solar versus those that aren't, right? So we have a large lower

00:24:48.280 --> 00:24:57.280
 income customer base that has an older house stock that cannot, one, support the structural

00:24:57.280 --> 00:25:00.680
 pressure on their roof, so there needs to be additional investment in that. And then

00:25:00.680 --> 00:25:05.400
 not only that, but I think from an income standpoint, from a disposable income standpoint,

00:25:05.400 --> 00:25:09.440
 those individuals have a harder time being able to justify a $20,000 to $30,000 expenditure,

00:25:09.440 --> 00:25:14.240
 right? And so I think there's an equity and fairness issue that we've got to deal with,

00:25:14.240 --> 00:25:20.600
 along with some other issues, structural rate issues that we have in that there's a fixed

00:25:20.600 --> 00:25:25.880
 component to our rates that has to be recovered that currently is not being recovered by the,

00:25:25.880 --> 00:25:31.660
 I would say, is a very generous program that we have that's beyond even the solar rebates.

00:25:31.660 --> 00:25:36.040
 This is how we credit people for the energy that they produce from the rooftop solar that

00:25:36.040 --> 00:25:40.480
 we're not even able to recover our fixed expenses. So those are things that we're going to be

00:25:40.480 --> 00:25:47.880
 coming back. Certainly, we understand this is sensitive information, and so we're going

00:25:47.880 --> 00:25:51.480
 to try to give different options, certainly give our perspective, and then we'll be looking

00:25:51.480 --> 00:25:56.040
 for policy recommendations from the various groups.

00:25:56.040 --> 00:25:58.040
 Okay, thanks.

00:25:58.040 --> 00:26:01.280
 My question on there, were you done?

00:26:01.280 --> 00:26:03.280
 Oh, go ahead, please.

00:26:03.280 --> 00:26:07.360
 It was actually a two-part question. Do we need to add money to it or perhaps remove

00:26:07.360 --> 00:26:13.520
 it altogether? Kind of along those lines. So I might amend my question to say, do we

00:26:13.520 --> 00:26:19.880
 need to reevaluate how that money is used to target specific groups of people, for example,

00:26:19.880 --> 00:26:25.520
 like low-income or something like that? So that's kind of more the flavor of question

00:26:25.520 --> 00:26:27.160
 I was kind of getting at there.

00:26:27.160 --> 00:26:32.120
 Okay. No, I just wanted to say, and I think in the presentation that we're contemplating,

00:26:32.120 --> 00:26:35.720
 those options will be there, and certainly we'll be looking for recommendations from

00:26:35.720 --> 00:26:40.480
 this body and from the sustainability group as well to then take to the council who will

00:26:40.480 --> 00:26:43.320
 ultimately set what that policy will be going forward.

00:26:43.320 --> 00:26:45.120
 I have a question.

00:26:45.120 --> 00:26:46.120
 Yes, sir.

00:26:46.120 --> 00:26:52.600
 Since we're going to be working to assist local individuals, residential customers to

00:26:52.600 --> 00:26:58.960
 get solar panels, like all pieces of equipment, they have a useful life. And it's one thing

00:26:58.960 --> 00:27:04.460
 for the large commercial operators that we procure power from to deal with disposal or

00:27:04.460 --> 00:27:13.040
 handling of those. Are we potentially creating a problem for our solid waste group with these

00:27:13.040 --> 00:27:19.240
 peripheral proliferation of solar panels in homes? It's a question, and I only came up

00:27:19.240 --> 00:27:22.440
 because we were talking about the panel issue.

00:27:22.440 --> 00:27:26.480
 Yeah. Certainly I don't think there's anybody here from solid waste, but certainly that's

00:27:26.480 --> 00:27:31.360
 a consideration. I don't know what kind of agreements these homeowners and businesses

00:27:31.360 --> 00:27:37.480
 have with their installers and whether or not they'll actually end up in the city's

00:27:37.480 --> 00:27:42.160
 landfill or some other landfill or some other recycling process. And so it's difficult.

00:27:42.160 --> 00:27:50.240
 I think from a community penetration standpoint, I think we're at less than 25% of our total

00:27:50.240 --> 00:27:57.000
 customers that actually have roofed out solar. So it's a very small fraction right now what's

00:27:57.000 --> 00:28:04.240
 there. And so I think from a quantity standpoint, I think it's probably at this point, probably

00:28:04.240 --> 00:28:09.440
 a minimal concern, I would estimate. But certainly I think that we can certainly try to address

00:28:09.440 --> 00:28:13.600
 that question. We can bring in our solid waste folks and see kind of what their thought process

00:28:13.600 --> 00:28:14.600
 is on that.

00:28:14.600 --> 00:28:17.360
 It seems like over time we'd be leaving ourselves open for future problems.

00:28:17.360 --> 00:28:22.680
 So Eugene McKinney is here, and maybe Eugene can respond to if they're seeing any of that

00:28:22.680 --> 00:28:26.680
 and how they're treating that.

00:28:26.680 --> 00:28:33.480
 Good morning. Eugene McKinney, I'm Deputy Director of Solid Waste and Recycling. Great

00:28:33.480 --> 00:28:40.440
 question. We do see minimal. We don't see anything. But if this becomes a concern, community

00:28:40.440 --> 00:28:47.200
 concern, this will fit perfectly into our comprehensive strategy. Keeping it away from

00:28:47.200 --> 00:28:52.200
 the landfill, finding markets for recycling this material, because definitely we don't

00:28:52.200 --> 00:28:57.240
 want it there. Again, we want that premium product in the landfill. So there will be

00:28:57.240 --> 00:29:03.440
 the question is, let's find markets for this after it's reached this life. So just like

00:29:03.440 --> 00:29:07.720
 so many other products, the conversation that we've been talking about here lately about

00:29:07.720 --> 00:29:12.840
 finding that second life, but keep it away from the landfill. So that would fit perfectly

00:29:12.840 --> 00:29:17.520
 in there if it becomes a community concern, something the landfill issue.

00:29:17.520 --> 00:29:23.840
 Well, I assume over time, the first solar systems may have been put in 10 or 15 years

00:29:23.840 --> 00:29:29.240
 ago. If they have a 20 or 25 year service life, in five or 10 years, you'll start seeing

00:29:29.240 --> 00:29:32.200
 the accumulation of these being taken out of service.

00:29:32.200 --> 00:29:37.640
 Right. And there's several factors there. The makeup of the material, right? And what

00:29:37.640 --> 00:29:45.680
 does it consist of, right? So typically anything that's from a landfill perspective and what

00:29:45.680 --> 00:29:51.040
 we're trying to get out of it that produce that secondary product, which is methane.

00:29:51.040 --> 00:29:56.200
 So you've heard it before, anything that doesn't fit into that, what should be going there,

00:29:56.200 --> 00:30:02.760
 we want to divert it away. So again, finding those markets that'll take those solar panels.

00:30:02.760 --> 00:30:07.720
 Looking now, right? Because we know it's going to come, right? So we look now. So when those

00:30:07.720 --> 00:30:12.280
 maturity, the maturity date has set, well, this is no longer, we'll already have the

00:30:12.280 --> 00:30:16.960
 button ready to go and say, okay, instead of coming here, here's an option for you.

00:30:16.960 --> 00:30:18.960
 I'm glad you're planning for it. Thank you.

00:30:18.960 --> 00:30:25.200
 I think the only other item that I'll add just very quickly is that as you know, if

00:30:25.200 --> 00:30:30.640
 you've kept up with, at the federal level, there's a current bill that's under consideration

00:30:30.640 --> 00:30:34.840
 that gets now moved out of the Senate into the House. It's likely going to pass. And

00:30:34.840 --> 00:30:41.080
 so within the components of that bill is this tax credits offer to rooftop installers that

00:30:41.080 --> 00:30:47.920
 I think it's like 23%. That is a very, I think, very lucrative, very generous tax credits

00:30:47.920 --> 00:30:54.480
 actually dwarfs the amount of the rebate that we offer. And that's planned to continue.

00:30:54.480 --> 00:30:59.920
 And so I think there's a huge benefit there already built into trying to incentivize people

00:30:59.920 --> 00:31:04.560
 to install rooftop solar that, you know, frankly, half a million dollars that we have dedicated

00:31:04.560 --> 00:31:08.120
 our budget is pretty insignificant, I think, at the end of the day. Although I understand

00:31:08.120 --> 00:31:13.120
 if you get that, it's still pretty nice to get, you know? But again, over half of our

00:31:13.120 --> 00:31:19.200
 installers right now are not getting those. And I feel a lot of those phone calls as to

00:31:19.200 --> 00:31:23.000
 why didn't I get it? Why don't you restructure this program? And so there's a lot of administrative

00:31:23.000 --> 00:31:26.240
 burden that goes into administering something like that. It'll be things that we'll be bringing

00:31:26.240 --> 00:31:28.200
 forward, hopefully addressing these questions.

00:31:28.200 --> 00:31:32.240
 Eugene, what's the current timeline for the comprehensive plan?

00:31:32.240 --> 00:31:38.740
 Well, right now we're in the planning this first fiscal season. And what we brought before

00:31:38.740 --> 00:31:42.840
 is from the planning, getting things together. We look at next fiscal season, you'll start

00:31:42.840 --> 00:31:47.560
 some of these some of these pieces moving forward. Some of these outside vendors being

00:31:47.560 --> 00:31:53.360
 set up, you know, there's been a large conversation on shingles and different C and D, different

00:31:53.360 --> 00:31:57.080
 things that we typically don't want. You know, you'll start seeing a lot of those things

00:31:57.080 --> 00:32:01.600
 set up maybe a year or two. And it's a progression, right? So as we move forward, you'll start

00:32:01.600 --> 00:32:05.440
 seeing a lot of these things. But right now we got the administrative things set up, setting

00:32:05.440 --> 00:32:10.200
 them up. We're looking at the employees, we're looking at programs. So it's a timeline thing

00:32:10.200 --> 00:32:14.960
 out from like, we got seven certain benchmarks from year one, year two, year three, year

00:32:14.960 --> 00:32:15.960
 four, year five on out.

00:32:15.960 --> 00:32:19.200
 So it's like a five, it's a five, it's gonna take five years to write this.

00:32:19.200 --> 00:32:23.080
 You know, and typically I say that we'd like to see some things happen a little sooner.

00:32:23.080 --> 00:32:27.000
 But some things are when you got startup, some things are out of out of out of control.

00:32:27.000 --> 00:32:31.760
 And as you write something next year, something else will change, you know, possibly, and

00:32:31.760 --> 00:32:35.040
 then this act will go into effect and we'll have to figure out how that works.

00:32:35.040 --> 00:32:39.760
 Yes. And then, you know, Tony mentioned about some things going on at the federal level,

00:32:39.760 --> 00:32:44.640
 you know, I've worked in several large municipalities. And as this becomes more prevalent in those

00:32:44.640 --> 00:32:49.600
 cities, you know, things are they're requiring these solar installers to kind of go through

00:32:49.600 --> 00:32:54.200
 the city for permits and different things like that before they install. And those permits

00:32:54.200 --> 00:32:59.040
 and ordinances are written to where disposal is your responsibility. It can't be, it can't

00:32:59.040 --> 00:33:02.440
 go to a landfill and it can't go to a waste to energy facility.

00:33:02.440 --> 00:33:29.200
 Thank you. So language up front is very important. Yes, sir. Yes. Yes. And that's the goal. A

00:33:29.200 --> 00:33:34.480
 lot of reusable materials in solar panels. Absolutely. And that's the that's the purpose

00:33:34.480 --> 00:33:39.080
 of finding that second life. Yeah, because all of it's not say, let's say trash at this

00:33:39.080 --> 00:33:43.040
 point, women, there's some good product here that has another life. We want to find those

00:33:43.040 --> 00:33:50.800
 markets for that versus just bury it and let it sit forever. All right. Okay. Great. Thanks.

00:33:50.800 --> 00:34:01.360
 Thank you. No further questions. Yes, we can move into concluding items. Our work session,

00:34:01.360 --> 00:34:04.600
 which is receive a report, hold a discussion to give staff direction regarding the city

00:34:04.600 --> 00:34:09.760
 of Denton ordinance and guidelines and issuing utility bill payment agreements. Is this connected

00:34:09.760 --> 00:34:21.340
 with the last discussion or soon? No, it is separate. Chair, board members, Krista Foster,

00:34:21.340 --> 00:34:26.000
 customer service manager. And this is actually to talk to you about our pay agreement guidelines

00:34:26.000 --> 00:34:34.160
 and processes. Um, so as you know, we've had a couple of wild years and lifted a lot of

00:34:34.160 --> 00:34:38.400
 fees, did a lot of things differently during the height of the pandemic. And as we've gone

00:34:38.400 --> 00:34:43.880
 through this spring, returning all of our business processes to normal, as we went back

00:34:43.880 --> 00:34:48.320
 into charging late fees and interruption fees and things such as that, I really wanted to

00:34:48.320 --> 00:34:54.760
 look at how were our existing guidelines going to be affected because everything has changed

00:34:54.760 --> 00:34:59.440
 with our economic climate and the way that it's impacted our customers. So what we did

00:34:59.440 --> 00:35:04.900
 is we set to look out to look at the process that hadn't changed since November of 2010.

00:35:04.900 --> 00:35:09.800
 We wanted to make things a little simpler where we could, um, increase the access that

00:35:09.800 --> 00:35:14.480
 customers have to our program, make sure that if we're increasing access that we're keeping

00:35:14.480 --> 00:35:19.560
 that sustainable with our workloads, right? And then improve our ability to meet our customer's

00:35:19.560 --> 00:35:26.000
 needs as we see the need for change. So we're going to present some opportunities and recommendations

00:35:26.000 --> 00:35:30.560
 and get some feedback. So our current ordinance and it is in ordinance, that's one of the

00:35:30.560 --> 00:35:35.500
 things that we discovered, um, requires council approved guidelines on file with the city

00:35:35.500 --> 00:35:41.640
 secretary and they currently allow for a five day arrangement, meaning that if you contact

00:35:41.640 --> 00:35:47.680
 us, we can allow you up to five days past your interruption date to make payment for

00:35:47.680 --> 00:35:54.520
 that bill. You can do that once every six months. If you have say a leak or just an

00:35:54.520 --> 00:36:00.760
 extremely high bill for some reason, then you can do a multi-month arrangement. It does require

00:36:00.760 --> 00:36:06.880
 50% of the balance upfront and then we break up the rest over three consecutive months

00:36:06.880 --> 00:36:12.520
 in equal payments and you may do that once every six months. So, and I forgot my paper.

00:36:12.520 --> 00:36:27.280
 Give me one moment. So the first thing that we recognized is a five day extension creates

00:36:27.280 --> 00:36:32.480
 kind of an arbitrary D date, right? It's not printed on anything that customer would see.

00:36:32.480 --> 00:36:36.640
 It relies solely on that customer writing down that date and remembering that they made

00:36:36.640 --> 00:36:42.940
 that arrangement and please understand a pay agreement is a mutual accountability, right?

00:36:42.940 --> 00:36:47.240
 There is accountability that we have in providing a program to the customer, but the customer

00:36:47.240 --> 00:36:52.560
 also has some accountability in meeting the commitments that are made. However, if we

00:36:52.560 --> 00:36:58.280
 can simplify that and provide them a due date, which is easy to remember or they can see

00:36:58.280 --> 00:37:03.520
 on their bill reference materials, then we're just making things better for that customer.

00:37:03.520 --> 00:37:08.760
 So the first thing we'd recommend is changing the due date of the extension to match the

00:37:08.760 --> 00:37:14.040
 due date of the current bill because that's printed on their bill. They can see they have

00:37:14.040 --> 00:37:19.240
 past due charges. They can see when their new bill is due. This would only change the

00:37:19.240 --> 00:37:23.600
 amount of time that's being allowed by up to two calendar days more than what they received

00:37:23.600 --> 00:37:29.720
 today. So it's not going to significantly impact, you know, timely collection of revenues,

00:37:29.720 --> 00:37:34.680
 but it will give customers a little bit more of an advantage on remembering and meeting

00:37:34.680 --> 00:37:41.200
 the agreements that they set. The next recommendation is, you know, we want our pay arrangements

00:37:41.200 --> 00:37:46.240
 to offer our customers flexibility and we want to try to prevent them from accumulating

00:37:46.240 --> 00:37:51.460
 large amounts of debt that they becomes an insurmountable amount. So one of the things

00:37:51.460 --> 00:37:59.280
 that we noticed was by restricting the number of requests just as the number of requests,

00:37:59.280 --> 00:38:04.200
 we're actually restricting our customers based on their need for an arrangement, not their

00:38:04.200 --> 00:38:09.320
 actions in following through with arrangements. One of the things that I found in looking

00:38:09.320 --> 00:38:18.560
 at some of our numbers is in the previous year, sorry, 46 percent of our customers that

00:38:18.560 --> 00:38:24.480
 had assistance referrals to interfaith ministries, the denials, 46 percent of those because customers

00:38:24.480 --> 00:38:31.240
 didn't complete their documentation, and about 29 percent either they didn't qualify by income

00:38:31.240 --> 00:38:38.160
 or they had too many assistances because we allow up to two. Over this year, what we have

00:38:38.160 --> 00:38:44.520
 found is only 7 percent of customers are not completing their documentation and 70 percent

00:38:44.520 --> 00:38:50.040
 of the denials are from people who either don't qualify or have already exceeded the

00:38:50.040 --> 00:38:56.480
 number of needed assistances. So we want to be able to give them an extra avenue to try

00:38:56.480 --> 00:39:00.840
 to get that additional time. Don't restrict the number of times that they can make those

00:39:00.840 --> 00:39:06.200
 payments or make those arrangements. We want to restrict based on are they following through

00:39:06.200 --> 00:39:12.240
 with those arrangements or do they need to look at some of our other programs. Currently,

00:39:12.240 --> 00:39:19.240
 for this year, we're looking at 36 percent of our arrangements have been defaulted. And

00:39:19.240 --> 00:39:23.360
 completing an arrangement that a customer completes really creates very little additional

00:39:23.360 --> 00:39:29.080
 workload for staff. But an arrangement that's defaulted now results in having to have longer

00:39:29.080 --> 00:39:35.080
 phone call conversations and upset customer. It requires field crews to go out. Yes, sir?

00:39:35.080 --> 00:39:40.840
 >> You've been talking in terms of percentages. What kind of numbers are we talking about?

00:39:40.840 --> 00:39:47.080
 How many of these arrangements a year? Or put this a different way, how many customers

00:39:47.080 --> 00:39:52.280
 a year request arrangements? >> Correct. So I have it by number of arrangements,

00:39:52.280 --> 00:40:00.960
 but that's okay. So from February to July of this year, that is almost 2,200 customers

00:40:00.960 --> 00:40:05.680
 have had arrangements. So, you know, we're seeing a lot of customers requesting them.

00:40:05.680 --> 00:40:12.080
 It is a daily activity in our business. And so what we'd like to do is change that program

00:40:12.080 --> 00:40:18.320
 to restrict the number of defaulted arrangements and rather than the fact that you need an

00:40:18.320 --> 00:40:22.040
 arrangement. >> What was the percentage you said of those

00:40:22.040 --> 00:40:27.120
 people requesting arrangements that defaulted? >> Currently, it has been 36 percent. But

00:40:27.120 --> 00:40:32.960
 we don't penalize the default behavior. We just restrict based on the request. So I'm

00:40:32.960 --> 00:40:38.720
 hoping that by creating that additional accountability that we can be more flexible for our customers

00:40:38.720 --> 00:40:43.480
 as well as reduce those numbers of defaults. >> So how many total customers are there in

00:40:43.480 --> 00:40:49.600
 that system? >> We have just over 65,000 customers currently.

00:40:49.600 --> 00:40:54.680
 >> Okay. Thank you. >> Mm-hmm. And then our final recommendation

00:40:54.680 --> 00:41:00.080
 is we discovered that in order to make changes to benefit our customers, it has to go through

00:41:00.080 --> 00:41:06.760
 that full council process. So for certain programs like this, what we are recommending

00:41:06.760 --> 00:41:12.520
 is placing an ordinance that we are required to have a program that it must be approved

00:41:12.520 --> 00:41:18.560
 by the city manager, it must be on file with the city secretary, it must be on our website,

00:41:18.560 --> 00:41:24.920
 and it must require council notification prior to being implemented. So that way, it doesn't

00:41:24.920 --> 00:41:30.040
 remove that important council oversight. And the same would be for the Public Utilities

00:41:30.040 --> 00:41:35.440
 Board. It would go out in a Friday report prior to implementation so that if there are

00:41:35.440 --> 00:41:41.480
 questions or concerns, it could always be pulled in for a full council process, but

00:41:41.480 --> 00:41:45.640
 it wouldn't require it so that we could get these changes in place for our customers and

00:41:45.640 --> 00:41:54.880
 impact them more in a more timely manner. So what we are recommending is that at any

00:41:54.880 --> 00:42:00.520
 time a customer may have one active arrangement of either a short-term agreement that will

00:42:00.520 --> 00:42:06.440
 allow them to get an extension to the due date of their current bill or a long-term

00:42:06.440 --> 00:42:11.480
 arrangement. The long-term arrangement would still be the same requirements, 50 percent

00:42:11.480 --> 00:42:16.160
 of the current balance, then three months of equal payments to be able to take care

00:42:16.160 --> 00:42:22.920
 of that balance. And then if a customer defaults to arrangement requests in a 12-month period

00:42:22.920 --> 00:42:29.840
 of time, they would be temporarily ineligible to receive a balance arrangement for 12 months

00:42:29.840 --> 00:42:35.540
 from the second default. So that there is a little bit of a repercussion for that failure

00:42:35.540 --> 00:42:38.400
 to hopefully change the behavior.

00:42:38.400 --> 00:42:49.200
 I don't think it was in here, but shouldn't education to the customer what other available

00:42:49.200 --> 00:42:51.360
 resources there are?

00:42:51.360 --> 00:42:56.960
 We do that as we go through the process of setting up arrangements. Sometimes as we're

00:42:56.960 --> 00:43:02.000
 setting up those arrangements, we'll have that conversation of do we need to do a referral

00:43:02.000 --> 00:43:08.040
 to an assistance agency, do we need to provide them that list of resources, things like that.

00:43:08.040 --> 00:43:13.180
 Educating them about our prepaid program, because a lot of customers are a little bit

00:43:13.180 --> 00:43:19.600
 afraid of that. But as we see customers move to prepaid, it changes their lives because

00:43:19.600 --> 00:43:24.600
 they get daily information about those balances, they never receive late fees. If they get

00:43:24.600 --> 00:43:30.200
 an interruption, it's off for usually 10, 15 minutes because they can make a minimal

00:43:30.200 --> 00:43:37.640
 payment to get it back on. So we do have those conversations with customers as well.

00:43:37.640 --> 00:43:41.980
 And so really what we're looking for is, again, trying to meet the goals of simplification

00:43:41.980 --> 00:43:47.280
 of the process for staff and for customers, increase accessibility of the program while

00:43:47.280 --> 00:43:51.660
 maintaining being sustainable, and be able to push changes that impact our public in

00:43:51.660 --> 00:43:57.200
 a timely manner. So I'm here for questions.

00:43:57.200 --> 00:44:02.040
 >> Just one concern there, and I understand the need to -- for a process to encourage

00:44:02.040 --> 00:44:08.600
 people to pay in a timely manner. But if you run into a situation where they've gone through

00:44:08.600 --> 00:44:16.580
 the process and still haven't been able to accommodate payment, would you cut the service

00:44:16.580 --> 00:44:23.660
 off on certain days when it's extremely hot or extremely cold, or would you allow some

00:44:23.660 --> 00:44:30.000
 time to get past that kind of weather? >> Sure. City ordinance actually provides

00:44:30.000 --> 00:44:37.440
 clause for that, and we do not do any interruptions if it is over 100 degrees, or there's a Denton

00:44:37.440 --> 00:44:43.840
 County heat advisory in effect, and we also do not interrupt services if it is below freezing.

00:44:43.840 --> 00:44:53.560
 So, yeah, we do make accommodation for that. >> Okay. Good. Thanks.

00:44:53.560 --> 00:45:00.120
 >> Regarding the recommended change to the ordinance about approving -- so could you

00:45:00.120 --> 00:45:09.440
 return to that slide? Right now City Council has to approve the ordinance change, so it's

00:45:09.440 --> 00:45:12.880
 like a full ordinance amendment, I guess, to -- >> Correct.

00:45:12.880 --> 00:45:17.840
 >> And this would just make it where we post it publicly and notify City Council, and then

00:45:17.840 --> 00:45:21.880
 it takes effect? >> Correct. The ordinance would be updated

00:45:21.880 --> 00:45:26.800
 to reflect that we still have the requirement of having one, that it be -- is on file, and

00:45:26.800 --> 00:45:32.880
 the ordinance would still require that notification to ensure that City Council is not eliminated

00:45:32.880 --> 00:45:38.800
 from the process, because they're a very important part of that process. But it would allow us

00:45:38.800 --> 00:45:43.920
 to be able to move through things that everyone would agree upon without having to prolong

00:45:43.920 --> 00:45:49.800
 that by, again, sometimes 8 to 12 weeks. >> Okay. And so right now the process takes

00:45:49.800 --> 00:45:53.240
 -- you said 8 to 12 weeks? >> Yeah. By the time we've gone through the

00:45:53.240 --> 00:45:57.160
 getting things ready, started to write the ordinances, then having to go through the

00:45:57.160 --> 00:46:02.480
 legal and the PUB and the council, and with a change like this, we're not going to just

00:46:02.480 --> 00:46:07.080
 write an ordinance and plop it in front of you. We're going to draft recommendations.

00:46:07.080 --> 00:46:11.860
 We're going to go through the entire process, get recommendation, then go back and go through

00:46:11.860 --> 00:46:16.200
 all of that legal process with the drafting of ordinances, so it could potentially take

00:46:16.200 --> 00:46:20.400
 even longer. >> Okay. And the new process, is it -- about

00:46:20.400 --> 00:46:25.160
 how much time does that save? >> Well, in this particular case, we identify

00:46:25.160 --> 00:46:30.960
 the changes that are necessary. We pull the current guidelines. We make the changes that

00:46:30.960 --> 00:46:35.720
 are there, get some time on the city manager's schedule, make sure that we can get approval

00:46:35.720 --> 00:46:40.380
 in that she says these are great changes, let's go for it. Then we're going to provide

00:46:40.380 --> 00:46:46.680
 information in a Friday report and potentially give maybe two weeks to allow for any questions

00:46:46.680 --> 00:46:51.200
 or changes. >> Okay. Thank you.

00:46:51.200 --> 00:46:58.240
 >> Good. Okay. Thank you very much, Krista. >> Of course.

00:46:58.240 --> 00:47:06.360
 >> I think there's any more questions. So I guess we'll entertain a motion for adjournment.

00:47:06.360 --> 00:47:11.920
 So moved. Thank you very much. We're adjourned.

