WEBVTT

00:00:00.000 --> 00:00:09.240
 >> Okay, it is 9 o'clock and we have a quorum so a call to order the public utilities board

00:00:09.240 --> 00:00:13.560
 for the City of Denton on Monday, June 12, 2023.

00:00:13.560 --> 00:00:16.800
 Our first item is presentations for members of the public.

00:00:16.800 --> 00:00:21.040
 Is anyone from the public wishing to present?

00:00:21.040 --> 00:00:22.380
 I see none.

00:00:22.380 --> 00:00:24.360
 So we'll move on to the consent agenda.

00:00:24.360 --> 00:00:30.360
 Does any board member wish to pull any items from A through F?

00:00:30.360 --> 00:00:32.920
 >> A. >> A.

00:00:32.920 --> 00:00:34.960
 Any others?

00:00:34.960 --> 00:00:36.080
 I see none.

00:00:36.080 --> 00:00:41.240
 Do we have a motion to approve items B through F?

00:00:41.240 --> 00:00:43.520
 Thank you and a second?

00:00:43.520 --> 00:00:44.320
 >> Second.

00:00:44.320 --> 00:00:45.000
 >> There'll be seconds.

00:00:45.000 --> 00:00:46.520
 All in favor say aye.

00:00:46.520 --> 00:00:47.720
 Aye.

00:00:47.720 --> 00:00:49.360
 Opposed?

00:00:49.360 --> 00:00:50.680
 Item A.

00:00:50.680 --> 00:00:52.520
 >> Good morning members of the PUB.

00:00:52.520 --> 00:00:57.360
 Randy Key, Denton Municipal Electric, electric engineering supervisor.

00:00:57.360 --> 00:01:01.440
 I'll gladly take any questions.

00:01:01.440 --> 00:01:03.040
 >> It was just a big number.

00:01:03.040 --> 00:01:06.720
 >> It was a big increase.

00:01:06.720 --> 00:01:08.640
 >> Yes, sir.

00:01:08.640 --> 00:01:15.920
 >> Really wasn't a presentation on how we got there, it was just a lot of statutes quoted.

00:01:15.920 --> 00:01:16.960
 So it gets a little confusing.

00:01:16.960 --> 00:01:20.320
 How did we get there?

00:01:20.320 --> 00:01:27.880
 >> So we were in talks with a lot of other electric utilities.

00:01:27.880 --> 00:01:32.080
 And we heard that wood poles were becoming an issue.

00:01:32.080 --> 00:01:39.720
 We decided to put in a bulk order as the lead times went from 14 weeks to six months.

00:01:39.720 --> 00:01:41.480
 We put in the PO.

00:01:41.480 --> 00:01:46.140
 Stella Jones came back and said that they couldn't fulfill

00:01:46.140 --> 00:01:48.080
 because we haven't done any price increases.

00:01:48.080 --> 00:01:53.080
 So they sent over the price increase and it was an 85% addition.

00:01:53.080 --> 00:01:57.960
 >> Okay. Was that already in the contract to have increases in price?

00:01:57.960 --> 00:01:58.880
 >> Yes, sir.

00:01:58.880 --> 00:02:04.120
 >> And it's only due to an extension of the realization of when we can get them.

00:02:04.120 --> 00:02:04.840
 Is that correct?

00:02:04.840 --> 00:02:05.520
 >> Yes, sir.

00:02:05.520 --> 00:02:06.680
 >> Okay.

00:02:06.680 --> 00:02:16.960
 So is this going to -- this could possibly change as well, right?

00:02:16.960 --> 00:02:19.720
 With the current atmosphere of --

00:02:19.720 --> 00:02:22.400
 >> I see it increasing even more, yes, sir.

00:02:22.400 --> 00:02:25.000
 >> Okay. All right.

00:02:25.000 --> 00:02:27.160
 >> Yeah. I mean, I'll just mention to tag --

00:02:27.160 --> 00:02:29.960
 tag a little bit on what Randy is saying.

00:02:29.960 --> 00:02:35.840
 This is another supply chain issue, frankly, but this one is very unique because this one has

00:02:35.840 --> 00:02:39.800
 to do with the creosote that's used to cover the poles.

00:02:39.800 --> 00:02:41.800
 There's some issues going on with that.

00:02:41.800 --> 00:02:44.480
 It's also limiting the supply.

00:02:44.480 --> 00:02:50.880
 And so in addition to adding these dollars, we're also looking to other opportunities

00:02:50.880 --> 00:02:56.840
 like utilizing other steel structures when it comes to our distribution system.

00:02:56.840 --> 00:03:02.360
 But again, that's part of the normal operational decisions that we make.

00:03:02.360 --> 00:03:06.320
 Obviously, we don't have a whole lot of steel poles out there for distribution,

00:03:06.320 --> 00:03:10.960
 but in the event that we need to, if there is a shortage, if we can't get these orders in,

00:03:10.960 --> 00:03:12.600
 we'll definitely do that as well.

00:03:12.600 --> 00:03:17.600
 But it's certainly just another supply chain issue that we're seeing along with transformers

00:03:17.600 --> 00:03:22.240
 and switch gear and a number of other pieces of equipment out there.

00:03:22.240 --> 00:03:23.640
 >> Okay.

00:03:23.640 --> 00:03:26.640
 >> Have you looked at concrete poles?

00:03:26.640 --> 00:03:27.400
 >> Yes, ma'am.

00:03:27.400 --> 00:03:28.000
 We have.

00:03:28.000 --> 00:03:35.720
 We have some on the system currently, but we're not fully set up for concrete poles as we are,

00:03:35.720 --> 00:03:42.840
 as for our steel and wood is easier for construction.

00:03:42.840 --> 00:03:49.200
 >> Okay. This item will be-- I will bring back up in relation to an item

00:03:49.200 --> 00:03:56.160
 on individual consideration, so I appreciate you letting us know about that.

00:03:56.160 --> 00:03:57.680
 I'll go ahead and move approval.

00:03:57.680 --> 00:03:57.960
 >> Yes, sir.

00:03:57.960 --> 00:03:58.520
 Thank you.

00:03:58.520 --> 00:03:59.800
 >> I second.

00:03:59.800 --> 00:04:00.560
 >> Thank you, Berber.

00:04:00.560 --> 00:04:01.960
 All in favor, say aye.

00:04:01.960 --> 00:04:02.320
 >> Aye.

00:04:02.320 --> 00:04:03.080
 >> Aye.

00:04:03.080 --> 00:04:05.760
 >> Opposed? Carries.

00:04:05.760 --> 00:04:09.640
 Next item is approval of the May 22nd, 2023 minutes.

00:04:09.640 --> 00:04:13.080
 Do we have any changes or corrections?

00:04:13.080 --> 00:04:16.560
 Seeing none, do we have a motion to approve?

00:04:16.560 --> 00:04:17.040
 >> Approve.

00:04:17.040 --> 00:04:19.600
 >> Berber's motioning and a second?

00:04:19.600 --> 00:04:20.600
 >> Second.

00:04:20.600 --> 00:04:21.240
 >> The second.

00:04:21.240 --> 00:04:22.640
 All in favor, say aye.

00:04:22.640 --> 00:04:23.960
 >> Aye.

00:04:23.960 --> 00:04:25.080
 >> Motion carries.

00:04:25.080 --> 00:04:31.680
 Item B, consider recommending the adoption of an ordinance for the city of Denton

00:04:31.680 --> 00:04:37.280
 to execute a contract with Mountain Cascade of Texas, LLC.

00:04:37.280 --> 00:04:37.960
 >> Good morning.

00:04:37.960 --> 00:04:39.880
 I'm Cole Tankersley.

00:04:39.880 --> 00:04:47.280
 I'm a capital projects project manager, and I'll be presenting the I-35 project today.

00:04:47.280 --> 00:04:55.160
 This is a-- this project is in support of TxDOT's relocation, widening of the freeways,

00:04:55.160 --> 00:04:58.880
 and we'll be moving the utilities in support of that.

00:05:02.360 --> 00:05:04.520
 It's a pretty large project.

00:05:04.520 --> 00:05:09.680
 It starts south near US 380, and it'll go all the way up to the Milam Road.

00:05:09.680 --> 00:05:15.560
 And it's a mix of wastewater and water with around 30,000 linear feet

00:05:15.560 --> 00:05:19.480
 of water relocation and wastewater.

00:05:19.480 --> 00:05:23.280
 And as I mentioned before, this is a TxDOT reimbursable project,

00:05:23.280 --> 00:05:27.000
 so we'll be getting 100% reimbursed.

00:05:27.000 --> 00:05:33.760
 We had three companies that bid, Mountain Cascade was the one that came in at the lowest,

00:05:33.760 --> 00:05:36.560
 that's over-- just over 16 million.

00:05:36.560 --> 00:05:39.880
 The other two were around 22 million.

00:05:39.880 --> 00:05:43.960
 And this is a pre-qualified list, so all three companies are more than capable

00:05:43.960 --> 00:05:45.840
 of completing this project.

00:05:45.840 --> 00:05:51.240
 And this is an invitation for bids, so we just went with the lowest of those three.

00:05:51.240 --> 00:05:57.400
 The public utility board's today, council will be on the 27th, and we'll give a notice

00:05:57.400 --> 00:06:03.040
 to proceed immediately following that so that they can start ordering material

00:06:03.040 --> 00:06:04.840
 and begin construction.

00:06:04.840 --> 00:06:10.920
 And the project's estimated to be about 300 days in construction.

00:06:10.920 --> 00:06:14.840
 There's some time limits to meet TxDOT's requirements

00:06:14.840 --> 00:06:18.440
 so that they can begin their work.

00:06:18.440 --> 00:06:23.840
 The total amount was 16,200,000.

00:06:23.840 --> 00:06:32.560
 The contingency is 5% for just over 800,000 for a total not to exceed of 17,000,000.1.

00:06:32.560 --> 00:06:35.440
 Do you have any questions?

00:06:35.440 --> 00:06:39.600
 >> I do. Can we go back to the code page or the--

00:06:39.600 --> 00:06:40.760
 >> Which page?

00:06:40.760 --> 00:06:42.520
 >> The tab with the three bids?

00:06:42.520 --> 00:06:43.120
 >> Yes, ma'am.

00:06:43.120 --> 00:06:46.440
 >> Are you-- I always get concerned when there's that big of a spread

00:06:46.440 --> 00:06:49.120
 between the low bidder and the next two?

00:06:49.120 --> 00:06:51.920
 >> Yes, I figured you have that question.

00:06:51.920 --> 00:06:53.680
 There's a couple of reasons.

00:06:53.680 --> 00:06:56.640
 One, Mountain Cascade is already doing this type of project for us right now.

00:06:56.640 --> 00:06:59.920
 So their ability to mobilize is cheaper.

00:06:59.920 --> 00:07:01.000
 They're already doing it.

00:07:01.000 --> 00:07:02.560
 They already have the teams created.

00:07:02.560 --> 00:07:04.280
 They're just going to add additional people.

00:07:04.280 --> 00:07:07.560
 So they were able to be a little bit lower for those reasons.

00:07:07.560 --> 00:07:10.400
 In addition, they had two choices.

00:07:10.400 --> 00:07:19.440
 They could use ductile iron pipe or HDPE which is like a polymer high density polyurethane pipe.

00:07:19.440 --> 00:07:25.000
 With that, they chose the HDPE which is cheaper.

00:07:25.000 --> 00:07:31.320
 In addition, they have Mountain Cascade purchased a machine that fuses it.

00:07:31.320 --> 00:07:33.200
 So they don't have to subcontract that out.

00:07:33.200 --> 00:07:37.320
 And they were able to come in much lower than the other two because I think they had

00:07:37.320 --> 00:07:40.440
 that capability in addition to their already mobilized.

00:07:40.440 --> 00:07:41.160
 >> Okay.

00:07:41.160 --> 00:07:43.320
 >> So because I mean that's the first thing we saw too.

00:07:43.320 --> 00:07:45.560
 It was like what's going on here?

00:07:45.560 --> 00:07:46.880
 >> How many change orders are we going to have?

00:07:46.880 --> 00:07:51.760
 >> And I will say that they're doing the exact same work right now in a different section

00:07:51.760 --> 00:07:54.520
 and they're doing a great job, so.

00:07:54.520 --> 00:07:56.320
 >> Which section are you referring to?

00:07:56.320 --> 00:07:58.480
 >> It's called the Mayhill Project.

00:07:58.480 --> 00:07:59.680
 So you'll see them out here.

00:07:59.680 --> 00:08:01.520
 I think they're by BJ's right now.

00:08:01.520 --> 00:08:03.520
 And what's that?

00:08:03.520 --> 00:08:04.880
 James Wood.

00:08:04.880 --> 00:08:07.040
 So if you're driving on the I-35, you see that pipe.

00:08:07.040 --> 00:08:08.840
 That's them doing that project right now.

00:08:08.840 --> 00:08:12.480
 >> Yeah. So your prequalification requirements,

00:08:12.480 --> 00:08:16.120
 were they TxDOT approved prequalification requirements?

00:08:16.120 --> 00:08:16.840
 >> Yes, sir.

00:08:16.840 --> 00:08:24.840
 >> Okay. Why did you decide to go with just the IFB on this one rather than you've had a history

00:08:24.840 --> 00:08:26.160
 of going with best value bits?

00:08:26.160 --> 00:08:27.440
 >> It's required, sir.

00:08:27.440 --> 00:08:30.000
 It's required to be IFB for TxDOT reimbursement.

00:08:30.000 --> 00:08:30.360
 >> Right.

00:08:30.360 --> 00:08:34.920
 >> So because it's the funding style from either state or federal funding.

00:08:34.920 --> 00:08:39.040
 But to make it a better situation, we went with a prequalified list to make sure

00:08:39.040 --> 00:08:43.720
 that the lowest bid is capable of doing the work.

00:08:43.720 --> 00:08:44.200
 >> Excuse me.

00:08:44.200 --> 00:08:45.520
 >> Yeah.

00:08:45.520 --> 00:08:47.920
 >> Yeah. So what we've done on these I-35 projects,

00:08:47.920 --> 00:08:54.040
 so when there's federal money that's involved, we're required to do IFB.

00:08:54.040 --> 00:08:58.040
 What we were finding were that you're kind of limited.

00:08:58.040 --> 00:09:01.800
 You know, you have to go with that low bid when you let everybody bid on it.

00:09:01.800 --> 00:09:06.560
 So what we were able to work out with TxDOT was to be able to create this prequalified list

00:09:06.560 --> 00:09:10.800
 and prequal-- I mean, look at all these firms, their qualifications,

00:09:10.800 --> 00:09:13.120
 all those types of things, and pre-approve them.

00:09:13.120 --> 00:09:16.360
 And then once we go out or once we determine we're ready for a project,

00:09:16.360 --> 00:09:21.200
 we can just release the project to these prequalified firms that we've already approved,

00:09:21.200 --> 00:09:26.520
 already reviewed their qualifications, and then we go with low bid based on those three.

00:09:26.520 --> 00:09:33.560
 >> Is there a certain percentage that TxDOT funded projects require for you to go

00:09:33.560 --> 00:09:40.000
 to the prequalification way instead of the best value bid you've been going with?

00:09:40.000 --> 00:09:45.080
 >> As far as I'm aware, if there's TxDOT money involved, we have to do low bid.

00:09:45.080 --> 00:09:47.240
 It doesn't matter what the cost is.

00:09:47.240 --> 00:09:49.280
 >> I'd audit that if I was you.

00:09:49.280 --> 00:09:50.280
 >> Okay.

00:09:50.280 --> 00:09:51.720
 >> Going backwards.

00:09:51.720 --> 00:09:53.520
 >> Yeah. I understand.

00:09:53.520 --> 00:09:58.400
 There's always, you know, we prefer to do the competitive seal proposal or the CMAR

00:09:58.400 --> 00:10:02.600
 that gives us more control over the type of contractors we get in, the qualifications.

00:10:02.600 --> 00:10:07.160
 But there's always a cost to getting free money or money from TxDOT and those types of things.

00:10:07.160 --> 00:10:10.840
 So we've worked with TxDOT to figure out a way that we can try to work in some

00:10:10.840 --> 00:10:16.480
 of those qualifications and things, and we're not just getting some random contractor,

00:10:16.480 --> 00:10:20.520
 you know, off the street that isn't really qualified to do this type of work.

00:10:20.520 --> 00:10:29.480
 >> I prefer that way of work myself, but I'm a former contractor, so I guess it was a month ago.

00:10:29.480 --> 00:10:30.840
 >> Yeah.

00:10:30.840 --> 00:10:32.720
 >> Okay. That's all I got.

00:10:32.720 --> 00:10:33.200
 >> Thank you.

00:10:33.200 --> 00:10:34.480
 >> Any questions?

00:10:34.480 --> 00:10:36.000
 All right.

00:10:36.000 --> 00:10:38.400
 Do we have a motion to approve?

00:10:38.400 --> 00:10:41.480
 >> Move approval.

00:10:41.480 --> 00:10:42.040
 >> Thank you, Billy.

00:10:42.040 --> 00:10:42.720
 And a second?

00:10:42.720 --> 00:10:43.200
 >> Second.

00:10:43.200 --> 00:10:43.960
 >> For a second.

00:10:43.960 --> 00:10:45.400
 All in favor say aye.

00:10:45.400 --> 00:10:47.160
 >> Aye.

00:10:47.160 --> 00:10:48.840
 >> Motion carries.

00:10:48.840 --> 00:10:50.200
 Management reports.

00:10:50.200 --> 00:10:57.800
 >> Madam Chair, so members of the POB, we've provided to you a memo from Solid Waste.

00:10:57.800 --> 00:11:00.800
 Certainly if you have questions regarding a grant that they've applied

00:11:00.800 --> 00:11:04.520
 for to address the Styrofoam problem at the landfill.

00:11:04.520 --> 00:11:07.400
 Certainly if there's questions you have on that.

00:11:07.400 --> 00:11:13.640
 And then on the future agenda, I think I've said at every meeting, budget, budget, budget, right?

00:11:13.640 --> 00:11:15.240
 Make sure your calendars are up to date.

00:11:15.240 --> 00:11:19.600
 You know, we're going to fill your time here with a lot of budgets between now

00:11:19.600 --> 00:11:20.800
 and the end of July.

00:11:20.800 --> 00:11:25.760
 And then finally on the new business action matrix, we've completed the first one

00:11:25.760 --> 00:11:28.040
 on there which is the debt load trends.

00:11:28.040 --> 00:11:32.080
 I did move the Winter Storm URI update to July 10th.

00:11:32.080 --> 00:11:35.120
 We've had a couple of things that come up and so I could not get to that.

00:11:35.120 --> 00:11:39.200
 But I'll commit to get to you by the 10th of July.

00:11:39.200 --> 00:11:45.120
 So with that, the other couple of items that weren't on here that I'll just mention.

00:11:45.120 --> 00:11:51.560
 One, if your term is expiring, please make sure if you're interested in being renominated

00:11:51.560 --> 00:11:57.000
 that you submit your documentation to Jesse Salazar, the city secretary's office.

00:11:57.000 --> 00:12:01.440
 If you have questions, please direct them to him or Kim can help you with that as well.

00:12:01.440 --> 00:12:04.680
 And then I think Billy wanted to give just a quick update on TNPA.

00:12:04.680 --> 00:12:06.560
 >> Okay, we're going to do that here?

00:12:06.560 --> 00:12:08.000
 >> We can do that here if you want to.

00:12:08.000 --> 00:12:10.280
 >> Okay, if you haven't heard, our general manager,

00:12:10.280 --> 00:12:16.680
 I think Bob Kahn has been the general manager for TNPA for about eight years now.

00:12:16.680 --> 00:12:18.160
 I think that's about right.

00:12:18.160 --> 00:12:24.720
 And he came in and Bob's really great, very qualified and very open and honest

00:12:24.720 --> 00:12:31.160
 and direct with the board and he went from having 190 employees shutting the plant

00:12:31.160 --> 00:12:35.040
 down and having six I think is what we have.

00:12:35.040 --> 00:12:38.840
 He did a great job with the legal, with the sale, with the plant sale,

00:12:38.840 --> 00:12:45.760
 with the, you know, he's an attorney but he's a guy that grew up in the electrical business.

00:12:45.760 --> 00:12:48.400
 He has decided to resign.

00:12:48.400 --> 00:12:50.400
 He's not retiring.

00:12:50.400 --> 00:12:54.360
 Although he said he was probably going to retire at TNPA, it's been announced, Tony.

00:12:54.360 --> 00:12:57.960
 Tony, sorry, I'm going to tell you, he's the director of Austin Energy.

00:12:57.960 --> 00:12:59.240
 >> Right, general manager.

00:12:59.240 --> 00:13:06.080
 >> General manager he is, which is going to be going from your, you know, your feet into the fire.

00:13:06.080 --> 00:13:11.840
 So God bless him on that and good luck to him.

00:13:11.840 --> 00:13:15.680
 Hate to lose him but we're getting at a point where we don't necessarily need

00:13:15.680 --> 00:13:21.000
 that qualified of a person honestly, I hate to say that but we're going to talk Friday.

00:13:21.000 --> 00:13:26.720
 I'm going to go to Brian with the other members and board members only.

00:13:26.720 --> 00:13:33.880
 It's not really required for PNO to be there and talk to two candidates for interim.

00:13:33.880 --> 00:13:38.000
 They wanted us, several of the board members wanted us to just decide the permanent one then

00:13:38.000 --> 00:13:43.840
 and I did not want to do that and so we're not going to do that.

00:13:43.840 --> 00:13:50.840
 On Friday, like I said, we'll interview those two candidates and then move on from there.

00:13:50.840 --> 00:13:52.360
 >> Madam Chair, that's all we have.

00:13:52.360 --> 00:13:55.040
 Certainly if there's any questions, happy to address them now.

00:13:55.040 --> 00:13:58.800
 >> It doesn't look like they're on.

00:13:58.800 --> 00:14:00.680
 All right, that brings us to concluding items.

00:14:00.680 --> 00:14:04.840
 Does any board member wish to have a future item put on an agenda

00:14:04.840 --> 00:14:08.560
 or comments to be made to the public?

00:14:08.560 --> 00:14:10.080
 I see none.

00:14:10.080 --> 00:14:11.360
 So we'll move into work session.

00:14:11.360 --> 00:14:12.720
 We're going to do it a little bit different.

00:14:12.720 --> 00:14:17.280
 We're going to do the customer service, environmental services and sustainability.

00:14:17.280 --> 00:14:21.760
 Then we'll go into closed session and we'll come back and do the electric.

00:14:21.760 --> 00:14:34.080
 >> Good morning, PUB, Danielle Stanford, budget manager.

00:14:34.080 --> 00:14:37.920
 So as Susan mentioned, we're going to do customer service, environmental services

00:14:37.920 --> 00:14:40.080
 and sustainability and then electric.

00:14:40.080 --> 00:14:43.280
 We are going to have a hybrid approach for each presentation.

00:14:43.280 --> 00:14:49.680
 So the manager or director of each utility is going to cover the first portion

00:14:49.680 --> 00:14:52.720
 of the presentation and then I'll cover the financials.

00:14:52.720 --> 00:14:57.240
 So first we'll begin with Krista Foster, the customer service manager,

00:14:57.240 --> 00:15:01.120
 and I'll turn it over to you, Krista.

00:15:01.120 --> 00:15:03.240
 >> Thank you, Danielle.

00:15:03.240 --> 00:15:06.840
 Madam Chair, board members, Krista Foster, customer service manager.

00:15:06.840 --> 00:15:10.200
 Let me go ahead and get this brought up.

00:15:10.200 --> 00:15:14.680
 And I will get us moving into the customer service budget starting with our metrics.

00:15:14.680 --> 00:15:18.880
 So what I've done is I've given you kind of our trend over the last four years

00:15:18.880 --> 00:15:24.080
 for our total number of accounts, our call volumes, the average time it's taking

00:15:24.080 --> 00:15:27.800
 for a representative to resolve a call, as well as the number

00:15:27.800 --> 00:15:30.080
 of bills that we're producing annually.

00:15:30.080 --> 00:15:33.280
 There have been increases in all four categories.

00:15:33.280 --> 00:15:37.280
 Certainly the sharpest increases that you'll note are both with our call volumes

00:15:37.280 --> 00:15:39.360
 and with our average call time.

00:15:39.360 --> 00:15:43.640
 That seems to be attributed to a lot of the financial and economic stresses

00:15:43.640 --> 00:15:49.520
 that our customers are experiencing throughout the pandemic and now post-pandemic.

00:15:49.520 --> 00:15:52.160
 We've also moved to a lot of self-service tools.

00:15:52.160 --> 00:15:58.320
 We've introduced eight new self-service forms on our website over the past 12 months.

00:15:58.320 --> 00:16:03.000
 So as we continue to take out some of those simpler calls, that again leads

00:16:03.000 --> 00:16:05.960
 to a longer call time as the things that people are getting

00:16:05.960 --> 00:16:11.240
 in for actually require resolution with a representative.

00:16:13.000 --> 00:16:17.360
 So if you look, the first thing we found is that it's helpful each year to remind everyone

00:16:17.360 --> 00:16:21.280
 that as we go into budget discussions, especially as it relates to utilities,

00:16:21.280 --> 00:16:25.480
 customer service has been moved as an internal service fund.

00:16:25.480 --> 00:16:30.680
 But we have no kind of operating reserve required for us.

00:16:30.680 --> 00:16:34.960
 And we allocate our expenses based on the usage

00:16:34.960 --> 00:16:39.400
 by the different utilities and the divisions that we serve.

00:16:39.400 --> 00:16:43.120
 We have a total of 56 and a half headcount that is broken down

00:16:43.120 --> 00:16:46.400
 into three major operating categories within our division.

00:16:46.400 --> 00:16:50.640
 The first is our contact center, our collections and revenue division,

00:16:50.640 --> 00:16:53.800
 as well as our utility billing areas.

00:16:53.800 --> 00:17:02.160
 Our FTE summary is we are preliminarily set for 62.5 FTE in the coming budget year.

00:17:02.160 --> 00:17:05.760
 We do have six FTE in supplemental requests

00:17:05.760 --> 00:17:09.800
 which we'll discuss more thoroughly as we move forward.

00:17:09.800 --> 00:17:15.480
 But that does include one frontline customer service rep, two customer service trainers,

00:17:15.480 --> 00:17:21.200
 and then some increases in support staff that have to support those frontline reps

00:17:21.200 --> 00:17:25.840
 with one senior customer service rep which functions as a team lead,

00:17:25.840 --> 00:17:29.920
 one supervisor and one cash operations specialist.

00:17:35.280 --> 00:17:40.760
 So in our strategic initiatives, our first initiative actually was finalized last week

00:17:40.760 --> 00:17:43.200
 and that is our phone system redesign.

00:17:43.200 --> 00:17:46.960
 We had a number of problematic call routing issues that were determined

00:17:46.960 --> 00:17:53.960
 with the old scripting methods even after we transitioned to the upgraded phone system.

00:17:53.960 --> 00:18:00.440
 Those original programs were copied into the new system so the problems were not resolved.

00:18:00.440 --> 00:18:04.720
 So what we've done is we've redone all of those call scripting methods.

00:18:04.720 --> 00:18:08.160
 We've rewritten our interactive voice response which is

00:18:08.160 --> 00:18:11.440
 that automated menu you hear when you first call in.

00:18:11.440 --> 00:18:15.360
 We've simplified that to make it easier to get to a representative.

00:18:15.360 --> 00:18:19.600
 We have added some extra latent features that allow us to better mobilize in the event

00:18:19.600 --> 00:18:23.280
 of an emergency and provide greater amounts of information to the public.

00:18:23.280 --> 00:18:28.840
 That did go live as of Thursday night last week and we operated with the new structure

00:18:28.840 --> 00:18:32.120
 on Friday with very few issues.

00:18:32.120 --> 00:18:35.960
 The second initiative is our Silver Blaze utility portal.

00:18:35.960 --> 00:18:41.200
 That project has been postponed slightly throughout time just because of some upgrades

00:18:41.200 --> 00:18:43.640
 that have needed to be done to our billing system.

00:18:43.640 --> 00:18:48.640
 That billing system upgrade is now in final stages of testing so we're hoping that we'll be able

00:18:48.640 --> 00:18:51.960
 to move forward with that throughout the rest of this year.

00:18:51.960 --> 00:18:55.640
 And our third initiative is our customer relationship management software

00:18:55.640 --> 00:18:58.400
 and our call center consolidation.

00:18:58.400 --> 00:19:01.560
 Frequently you'll hear us refer to that as 311.

00:19:01.560 --> 00:19:06.880
 I'm stepping back from calling it 311 and going for call center consolidation

00:19:06.880 --> 00:19:11.800
 since at initial onset we will not be utilizing the 311 designation.

00:19:11.800 --> 00:19:15.400
 We don't want that to create confusion possibly for our public

00:19:15.400 --> 00:19:20.280
 to where they may think they can just pick up the phone and make that dial with 311.

00:19:20.280 --> 00:19:25.000
 So as we look at moving into the customer relationship management software this is going

00:19:25.000 --> 00:19:30.080
 to allow us to integrate with all of the major departmental work order systems,

00:19:30.080 --> 00:19:35.120
 increase the amount of true self-service and give customers one point of contact

00:19:35.120 --> 00:19:38.200
 to reach a representative who can take care of their issue.

00:19:38.200 --> 00:19:43.920
 They can take care of multiple issues for multiple departments with one contact to one person.

00:19:43.920 --> 00:19:49.320
 So we also have a new mobile application that will replace Engage Denton as well

00:19:49.320 --> 00:19:53.680
 as a more robust service request area on our website.

00:19:53.680 --> 00:19:58.200
 This is expected with the first phase of launch to happen in November of this year

00:19:58.200 --> 00:20:01.000
 and then we'll be phasing throughout the next year.

00:20:01.000 --> 00:20:06.200
 And then I will turn it back over to Danielle for financials.

00:20:06.200 --> 00:20:19.160
 >> Okay. So as Krista mentioned the customer service fund is fully funded

00:20:19.160 --> 00:20:22.040
 by other departments, the departments that they serve.

00:20:22.040 --> 00:20:25.240
 So on the pro forma here you see that their sources

00:20:25.240 --> 00:20:31.520
 of revenue are mostly other city departments, the largest contributor being DME.

00:20:31.520 --> 00:20:39.800
 So our budget from the current fiscal year to FY24 has increased significantly as you see there

00:20:39.800 --> 00:20:44.520
 by about 1.3 million, the largest driver of that is the call volume.

00:20:44.520 --> 00:20:50.600
 So we allocate three different ways, one of those ways being the number of calls

00:20:50.600 --> 00:20:54.720
 that customer service takes for each entity that they serve.

00:20:54.720 --> 00:21:01.560
 DME is their largest customer and their call volume did increase by about 8% from 23 to 24.

00:21:01.560 --> 00:21:06.840
 These are of course estimated numbers at the end of each fiscal year.

00:21:06.840 --> 00:21:11.000
 We do a cost allocation true up so if we've, you know,

00:21:11.000 --> 00:21:16.120
 budgeted slightly off we do true that up at the end of each year.

00:21:16.120 --> 00:21:21.800
 Water, wastewater stay right on track with what they're budgeted, same for solid waste.

00:21:21.800 --> 00:21:28.160
 Airport fleet and engineering have increased slightly,

00:21:28.160 --> 00:21:31.720
 same thing that the customer service department is expanding their services

00:21:31.720 --> 00:21:37.200
 for those entities so their allocation reflects that.

00:21:37.200 --> 00:21:43.520
 Moving down into personnel services for expenses, that 24 number includes all

00:21:43.520 --> 00:21:48.200
 of the requests that Krista has identified.

00:21:48.200 --> 00:21:53.520
 So the bottom line, the 9.7 includes, is a fully loaded budget, it includes all

00:21:53.520 --> 00:21:57.360
 of the baseline and supplemental requests that she's requested.

00:21:57.360 --> 00:22:01.600
 If we do not approve those of course that bottom line would decrease

00:22:01.600 --> 00:22:05.720
 and the allocations would decrease accordingly as well.

00:22:05.720 --> 00:22:13.280
 Change requests, they have two baseline adjustment requests.

00:22:13.280 --> 00:22:19.760
 The first is their increase credit card processing fees, we are seeing that this is going

00:22:19.760 --> 00:22:23.280
 to be an issue even in the current year so we've just gone ahead and asked

00:22:23.280 --> 00:22:26.920
 that that be increased for the upcoming fiscal year.

00:22:26.920 --> 00:22:32.080
 And then the increase for the utility assistance program by about $50,000.

00:22:32.080 --> 00:22:36.440
 So a total based on adjustment request of 750,000.

00:22:36.440 --> 00:22:39.920
 In the right hand column you'll see that we've added that funding source this year.

00:22:39.920 --> 00:22:43.680
 This is what the budget team has proposed, the manner

00:22:43.680 --> 00:22:46.360
 which we proposed that that's going to be funded.

00:22:46.360 --> 00:22:51.640
 So here we're just adding it to their operating fund.

00:22:51.640 --> 00:23:01.480
 >> Is that 700 grand, where is that in your income statement over here?

00:23:01.480 --> 00:23:04.360
 >> It's in the operations line.

00:23:04.360 --> 00:23:10.600
 >> Okay. So that's coming from credit card processing fees

00:23:10.600 --> 00:23:12.640
 when customers pay their utility bills, right?

00:23:12.640 --> 00:23:13.280
 >> That's correct.

00:23:13.280 --> 00:23:16.360
 >> And that's the cost that the city's paying on behalf of the customers.

00:23:16.360 --> 00:23:18.200
 Why don't we pass that through on to the customers?

00:23:18.200 --> 00:23:24.280
 Not that I'm advocating for that, but I mean it's not unusual when you pay for a bill

00:23:24.280 --> 00:23:27.520
 with a credit card that that fee's passed back on to the person paying,

00:23:27.520 --> 00:23:29.400
 not the business that's paying that.

00:23:29.400 --> 00:23:30.840
 >> Especially the government entity.

00:23:30.840 --> 00:23:35.720
 >> Right. Yeah.

00:23:35.720 --> 00:23:37.760
 >> Krista Foster, customer service manager.

00:23:37.760 --> 00:23:42.520
 I had the pleasure of having to greatly look into that as my very first opportunity

00:23:42.520 --> 00:23:46.240
 to come before the board and council in 2019.

00:23:46.240 --> 00:23:50.120
 So credit card bylaws are very specific.

00:23:50.120 --> 00:23:51.400
 There are a couple of reasons.

00:23:51.400 --> 00:23:53.160
 Bottom line first and foremost,

00:23:53.160 --> 00:23:56.320
 city council made the decision they wanted no pass

00:23:56.320 --> 00:23:59.400
 through fees to our residential customers.

00:23:59.400 --> 00:24:03.520
 However, at that time, and we would have to review them again later

00:24:03.520 --> 00:24:08.360
 if that was the direction we were given, the bylaws indicated

00:24:08.360 --> 00:24:13.600
 that if we charge a pass through fee or a transactional fee to a commercial,

00:24:13.600 --> 00:24:15.720
 we must do that to a residential.

00:24:15.720 --> 00:24:18.320
 It could not be a varied fee.

00:24:18.320 --> 00:24:20.680
 It has to be a fixed rate fee.

00:24:20.680 --> 00:24:26.000
 And if we at that time had accepted passing on a fee, it prevented us

00:24:26.000 --> 00:24:30.120
 from accepting any recurring forms of payments through our website.

00:24:30.120 --> 00:24:35.320
 So there were a lot of additional costs that it would create for us in our business.

00:24:35.320 --> 00:24:42.360
 At that time, the operational costs for that were running about $25,000 to $30,000 a month,

00:24:42.360 --> 00:24:45.920
 and now they're running close to $90,000 to $100,000 a month.

00:24:45.920 --> 00:24:48.120
 So that's why you're seeing this type of increase.

00:24:48.120 --> 00:24:50.760
 >> Is that due to the volume of people who are using credit cards?

00:24:50.760 --> 00:24:51.800
 >> It is due to the volume.

00:24:51.800 --> 00:24:53.200
 We are seeing increased volumes.

00:24:53.200 --> 00:24:57.720
 Again, I think a portion of that is due to some of the economic hardships

00:24:57.720 --> 00:25:02.240
 and then people more are lending toward putting their bills on credit.

00:25:02.240 --> 00:25:05.880
 But I certainly can't say that that would be all of it.

00:25:05.880 --> 00:25:09.600
 >> Yeah, I just come from working in the financial industry,

00:25:09.600 --> 00:25:13.160
 and I know those interchange fees are pretty costly.

00:25:13.160 --> 00:25:13.840
 >> Yes.

00:25:13.840 --> 00:25:18.000
 >> Rewards cards and American Express, and it's a little bit unsettling as a taxpayer

00:25:18.000 --> 00:25:21.760
 that I'm paying 3 to 5 percent interchange fees on behalf of someone--

00:25:21.760 --> 00:25:27.880
 >> I was going to say our interchange rate has been running about 1 percent to 1.1 percent,

00:25:27.880 --> 00:25:31.440
 somewhere in that range, and we do not accept American Express.

00:25:31.440 --> 00:25:32.360
 >> Okay.

00:25:32.360 --> 00:25:34.960
 >> I'm assuming because of the interchange fees.

00:25:34.960 --> 00:25:37.280
 Thank you so much.

00:25:37.280 --> 00:25:38.880
 Any other questions?

00:25:38.880 --> 00:25:47.120
 >> You said that if you require commercial to pay it, then you also have to require residential?

00:25:47.120 --> 00:25:48.600
 >> Yeah, we cannot differentiate.

00:25:48.600 --> 00:25:51.960
 >> You can't-- same thing goes for the opposite, is that correct?

00:25:51.960 --> 00:25:52.760
 >> For what?

00:25:52.760 --> 00:25:56.000
 >> If you require residential to pay it, you also have to require commercial to pay it.

00:25:56.000 --> 00:25:56.320
 >> Correct.

00:25:56.320 --> 00:26:06.200
 >> Okay. Because that operational increase was more than-- I mean, the $700,000 was in both of them,

00:26:06.200 --> 00:26:12.520
 I'm sure, but it was more of an increase in your operations.

00:26:12.520 --> 00:26:19.040
 I'm not really clear on why that is because if you didn't--

00:26:19.040 --> 00:26:22.680
 [ Inaudible Remark ]

00:26:22.680 --> 00:26:25.880
 >> So you got operations at--

00:26:25.880 --> 00:26:28.280
 >> But the baseline of judgment is down below.

00:26:28.280 --> 00:26:29.920
 >> Decrease, but let's see.

00:26:29.920 --> 00:26:36.000
 >> Well, our operations budget has stayed flat from '23 to '24, and then the $750,000 you see

00:26:36.000 --> 00:26:40.800
 in the baseline adjustment second row from the bottom, that's because we don't assume

00:26:40.800 --> 00:26:44.520
 that those are approved and it's easily removed

00:26:44.520 --> 00:26:47.560
 from the baseline adjustment versus in the budget.

00:26:47.560 --> 00:26:49.960
 >> The baseline adjustment, you're-- I'm sorry, I was--

00:26:49.960 --> 00:26:50.400
 >> That's okay.

00:26:50.400 --> 00:26:51.520
 >> -- looking while you were--

00:26:51.520 --> 00:26:51.840
 >> That's okay.

00:26:51.840 --> 00:26:52.680
 >> -- answering.

00:26:52.680 --> 00:26:56.520
 The $750,000 is the credit card fees are in there?

00:26:56.520 --> 00:26:57.000
 >> It is.

00:26:57.000 --> 00:27:02.760
 It's in the-- the $750,000 is the $700,000 for the credit card processing fees

00:27:02.760 --> 00:27:04.240
 and the utility assistance program.

00:27:04.240 --> 00:27:06.280
 >> Okay. It's not in the operations line, it's in the--

00:27:06.280 --> 00:27:10.400
 >> Correct, but if it were approved, then it would be in the operations line.

00:27:10.400 --> 00:27:13.320
 >> Okay. Wow.

00:27:13.320 --> 00:27:19.800
 >> Can you remind me how much do we have now going towards the utility assistance?

00:27:19.800 --> 00:27:21.480
 I know that we increased it.

00:27:21.480 --> 00:27:22.080
 >> We did.

00:27:22.080 --> 00:27:26.760
 We increased by, I believe, $25,000 last year.

00:27:26.760 --> 00:27:33.380
 We are currently budgeted at $175,000 per year to assist.

00:27:33.380 --> 00:27:39.320
 What we have found is we have had to increase the amount given again this year.

00:27:39.320 --> 00:27:46.680
 Interfaith would have been running out of funds about the middle of this month at the $175,000 mark.

00:27:46.680 --> 00:27:53.480
 And we have seen a dramatic change in the reasons that customers are denied.

00:27:53.480 --> 00:27:58.440
 So, in the past, 20% of our customers roughly were denied

00:27:58.440 --> 00:28:01.320
 because they never completed their documentation.

00:28:01.320 --> 00:28:03.760
 They never fulfilled all of the obligations.

00:28:03.760 --> 00:28:08.240
 At this point, we're now seeing 15%, 20% of the people being denied

00:28:08.240 --> 00:28:11.440
 because they've already received maximum assistance.

00:28:11.440 --> 00:28:18.320
 So, there has been a significant change in the needs within that fund.

00:28:18.320 --> 00:28:24.960
 >> So, if it's over 25 this month, where are you going to be in September?

00:28:24.960 --> 00:28:30.120
 >> We've already made-- we've already made sure to increase our funding for this year based

00:28:30.120 --> 00:28:34.800
 on the contractual add that was made in December of last year.

00:28:34.800 --> 00:28:36.320
 So, we can make it through the summer.

00:28:36.320 --> 00:28:41.320
 We may run out of funding toward the very end of September.

00:28:41.320 --> 00:28:42.680
 >> Are we going to make it through the summer?

00:28:42.680 --> 00:28:44.320
 >> We're hoping that we can make it through the summer.

00:28:44.320 --> 00:28:47.600
 Of course, it will all depend on what, you know, is brought forward.

00:28:47.600 --> 00:28:51.680
 But they should have funding to make it through the majority of the summer.

00:28:51.680 --> 00:28:53.040
 >> Thank you.

00:28:53.040 --> 00:29:00.680
 >> Just a couple more points on the pro forma.

00:29:00.680 --> 00:29:08.280
 The personnel services for FY 24 does include the comp and class implementation plus 3%.

00:29:08.280 --> 00:29:12.040
 Same thing for the out years-- I'm sorry.

00:29:12.040 --> 00:29:18.560
 FY 24 includes comp and class with-- so, we have the 3% built in and then the difference

00:29:18.560 --> 00:29:25.800
 of what was needed on top of that 3% and then a 3% inflation in the out years.

00:29:25.800 --> 00:29:29.280
 O&M has a 2% inflation in the out years.

00:29:29.280 --> 00:29:33.240
 And those are really the largest changes to the expenses.

00:29:33.240 --> 00:29:39.520
 And then that brings us to our supplemental request.

00:29:39.520 --> 00:29:42.520
 As Krista touched on, it is-- oops, I'm sorry.

00:29:42.520 --> 00:29:48.400
 In large part, 6 FTEs and then the top request is the merit increase.

00:29:48.400 --> 00:29:52.960
 So, we're not only implementing comp and class in the current fiscal year,

00:29:52.960 --> 00:29:58.200
 we're also proposing a merit increase in the upcoming fiscal year.

00:29:58.200 --> 00:30:04.760
 And all of these will be funded in the operating budget and then allocated back out to departments.

00:30:04.760 --> 00:30:12.560
 And then Krista's going to go over the supporting documentation for each supplemental request.

00:30:12.560 --> 00:30:15.040
 >> All right.

00:30:15.040 --> 00:30:17.600
 Thank you for letting me speak again.

00:30:17.600 --> 00:30:21.520
 So, the first thing I wanted to do is just summarize how call consolidation is going

00:30:21.520 --> 00:30:24.480
 to change our services as that is coming up this year.

00:30:24.480 --> 00:30:31.560
 So, currently, we support the main number for City Hall, solid waste, utility billing, and dino dirt.

00:30:31.560 --> 00:30:37.680
 So, as we move into consolidation and we phase through by this time next summer,

00:30:37.680 --> 00:30:42.680
 we will also support community improvement services, parks maintenance, public works,

00:30:42.680 --> 00:30:46.120
 water distribution, water meter shop, waste water,

00:30:46.120 --> 00:30:50.720
 and absorb the after hours emergency support that's currently at DME.

00:30:50.720 --> 00:30:57.600
 And when we're looking at water meter shop, waste water, we currently support their utility billing functions

00:30:57.600 --> 00:30:59.880
 and the things that are related to that.

00:30:59.880 --> 00:31:03.160
 This will now be supporting those infrastructure type calls.

00:31:03.160 --> 00:31:07.120
 So, if there's a water main break, a sewer backup, those types of things.

00:31:07.120 --> 00:31:11.440
 General services that we provide today are the things that you would expect with a utility,

00:31:11.440 --> 00:31:16.960
 starting and stopping services, referrals for assistance, referrals to non-city services.

00:31:16.960 --> 00:31:24.320
 Things that we will be adding are emergency service orders and dispatches for our infrastructure divisions.

00:31:24.320 --> 00:31:28.040
 We will be doing regular infrastructure work orders for streets and sidewalks,

00:31:28.040 --> 00:31:33.360
 traffic control, water infrastructure, water metering, and waste water infrastructure.

00:31:33.360 --> 00:31:39.520
 Additionally, we'll be taking code violations as well as some of those parks maintenance types of issues.

00:31:39.520 --> 00:31:43.960
 You know that we did add some staff in preparation for 311.

00:31:43.960 --> 00:31:50.760
 We did bring those staff on in March of last year so that they could be fully versed in the utility billing section of that,

00:31:50.760 --> 00:31:54.840
 as all the contact center agents will be generalists.

00:31:54.840 --> 00:31:58.680
 So, if they pick up the phone and it's a waste water call for infrastructure,

00:31:58.680 --> 00:32:05.000
 or they pick up the phone and it's a call about the bill, that one representative can handle both issues.

00:32:05.000 --> 00:32:13.080
 What we have found is with the call volumes that we have experienced over the last few years that you saw in my summary,

00:32:13.080 --> 00:32:19.560
 that staff has been absorbed into what was necessary just for us to try to maintain normal operation.

00:32:19.560 --> 00:32:28.520
 Our supplemental requests include some frontline staff because our business need has outpaced our increases in that area,

00:32:28.520 --> 00:32:33.400
 and we need to prepare for the increased consolidated call volumes.

00:32:33.400 --> 00:32:43.320
 We also have some requests for support staff because at this point, the pre-planned workload for our team leads and supervisors,

00:32:43.320 --> 00:32:48.680
 meaning just the things that must happen that they know have to happen before they walk in the door,

00:32:48.680 --> 00:32:53.880
 range from 9 to 11 hours of commitment daily, and they don't have that.

00:32:53.880 --> 00:32:58.440
 So, it doesn't allow any opportunity for unplanned activities.

00:32:58.440 --> 00:33:07.400
 And if you have ever been in a contact center at all familiar with, unplanned activity is a huge portion of what we do.

00:33:07.400 --> 00:33:12.440
 So, that's part of the reason we have requests. We've also requested two trainers.

00:33:12.440 --> 00:33:23.800
 We found that over the last fiscal year, we had to pull two of our frontline representatives to assist with training classes just to try to stay on top of keeping staffing there.

00:33:23.800 --> 00:33:32.440
 Customer service is an entry position within the city. People a lot of times will promote either within our division or into other roles within the city.

00:33:32.440 --> 00:33:40.440
 We're happy to see them grow and to thrive, but we also have that revolving door and the need for being able to train them.

00:33:40.440 --> 00:33:50.280
 We're also being required to, through our tech services model, to look for having a subject matter expert on hand who can really deal with the telephone system,

00:33:50.280 --> 00:34:04.760
 the troubleshooting and liaison with them for solutions on the phone system, as well as the systems we utilize that are integrated with that phone system, such as our workforce management and our quality assurance programs.

00:34:04.760 --> 00:34:17.720
 So, we're going to look just a little bit at the metrics of what's going on in the contact center specifically, and the projections for next year include anticipation of a 3-1-1 volume.

00:34:17.720 --> 00:34:27.640
 So, what you're going to see is our four-year change for our total calls handled is a 33.23 percent change.

00:34:27.640 --> 00:34:35.000
 You'll notice that the dark area is the calls we were actually able to answer versus, I'm sorry, that was our calls offered.

00:34:35.000 --> 00:34:42.520
 The light area is the number of calls that ultimately had to give up. They couldn't get through. They hung up.

00:34:42.520 --> 00:34:56.320
 We couldn't get to them for whatever reason, and those are our abandons. So, you'll see that, you know, our staffing and ability to handle those calls has stayed roughly the same as our average call times have gone up slightly.

00:34:56.320 --> 00:35:06.640
 Even though we've added a couple of staff members with that increased time that it's taking to work with people, it's not helping us to overcome the volumes that were being presented.

00:35:06.640 --> 00:35:19.680
 And as you look into moving to 2024, we anticipate a reduced average handle time because as we bring in some of those infrastructure calls, they don't take as long as billing and utility calls.

00:35:19.680 --> 00:35:32.000
 But even with that reduction, it's not going to get us the amount of staffing that we need to really adequately handle the volume and the request.

00:35:32.000 --> 00:35:49.720
 Peak wait times, and this makes me very sad and uncomfortable, but our peak wait times, if you'll see, we've gone up to a 45 minute average wait during the peak wait times in 2022.

00:35:49.720 --> 00:35:59.560
 We were at a 35 minute or so average wait through our peak wait times from 1130 in the morning until two o'clock in the afternoon when people are at lunches.

00:35:59.560 --> 00:36:05.840
 And that is a 462 percent increase over the last four years.

00:36:05.840 --> 00:36:12.280
 Don't you have the opportunity for them to leave their number and you can call them back?

00:36:12.280 --> 00:36:14.760
 We do. We do.

00:36:14.760 --> 00:36:22.440
 But it still leaves us with the waits because they're still technically part of those wait times.

00:36:22.440 --> 00:36:26.920
 And how long did they have to wait to be able to get us to take care of them?

00:36:26.920 --> 00:36:35.720
 And if we're taking care of you in the order in which you called, the customer who's on the phone actually holding is still having to wait through that time.

00:36:35.720 --> 00:36:43.760
 Certainly, we encourage people to use the callback system because at least that way you're not waiting with the music in your ear for an hour.

00:36:43.760 --> 00:36:52.920
 Right. But it's very important to note that if we have an average wait of 35 minutes during that peak,

00:36:52.920 --> 00:37:00.480
 that means that the peak wait time may be in excess of an hour or an hour and 10 minutes

00:37:00.480 --> 00:37:05.880
 because 35 minute average assumes that some of them are getting in more quickly than others.

00:37:05.880 --> 00:37:11.760
 And it's just something that I have to give folks lunches, I have to give them breaks.

00:37:11.760 --> 00:37:17.880
 And they just happen to coincide with the same types of times that people also are taking lunches and breaks.

00:37:17.880 --> 00:37:22.040
 So that's what's happened with those.

00:37:22.040 --> 00:37:26.640
 And this is looking at our percentage of callers who have to wait longer than one minute.

00:37:26.640 --> 00:37:32.640
 Our goal is to answer callers in a minute or less of hold, at least 75 percent of them.

00:37:32.640 --> 00:37:39.080
 And what you'll see is pre-pandemic, we were going into that very easily, handling that.

00:37:39.080 --> 00:37:44.280
 What you'll see now is 60 percent of our customers are waiting for longer than a minute.

00:37:44.280 --> 00:37:52.240
 So unless you're calling like right at the start of the day or right at the end of the day, you're probably going to be experiencing a wait time.

00:37:52.240 --> 00:37:57.520
 And this is concerning for us as we move into the consolidated call center,

00:37:57.520 --> 00:38:07.360
 because we don't want people with some form of an emergency to have to wait for an extended period of time.

00:38:07.360 --> 00:38:15.160
 And then that will be all of mine. Give it back to you.

00:38:15.160 --> 00:38:21.560
 So for next steps, we'll be back with you all next or the next meeting for any changes between today's budget.

00:38:21.560 --> 00:38:27.640
 And in that meeting, we'll be back with you on the 18th for a rates work session.

00:38:27.640 --> 00:38:34.360
 Customer service doesn't have rates, so well, not rates that will be discussed here.

00:38:34.360 --> 00:38:40.440
 And then we'll have budget approvals on July 24th.

00:38:40.440 --> 00:38:47.280
 And then that doesn't make sense. Oh, that's for city council. I'm sorry.

00:38:47.280 --> 00:38:53.320
 Like, wait, we don't have to do that. So then we'll start our council meetings in July.

00:38:53.320 --> 00:38:58.520
 Do you have any further questions for customer service?

00:38:58.520 --> 00:39:04.840
 Thank you. Thank you.

00:39:04.840 --> 00:39:16.680
 OK, so next, we'll move into environmental services and sustainability.

00:39:16.680 --> 00:39:23.080
 Good morning, board members, Michael Gagne, director of environmental services and sustainability.

00:39:23.080 --> 00:39:27.640
 Starting off our metrics, a lot of these are changing per year.

00:39:27.640 --> 00:39:34.360
 But one of the things we work heavily with the solid waste and recycling is to do a lot of community outreach on recycling education.

00:39:34.360 --> 00:39:39.640
 That's one of our key goals is to reach at least 10 percent of our customers every year.

00:39:39.640 --> 00:39:47.440
 That's the top one on there. Our energy rebates are trailing a little bit this year that's somewhat driven off demand.

00:39:47.440 --> 00:39:52.160
 And the amount of the rebate is a little lower right now compared to what the costs are.

00:39:52.160 --> 00:39:57.960
 So I think we're having less traction. We're looking at those rebate structures to improve that for next year.

00:39:57.960 --> 00:40:03.320
 Then you move into a lot of our stormwater related efforts, as well as our industrial pretreatment program.

00:40:03.320 --> 00:40:12.680
 That's IPP. Those are things we're doing on behalf of both drainage, the entire city, as well as water utilities.

00:40:12.680 --> 00:40:15.840
 And you move down into gas well inspections. That's a variable number.

00:40:15.840 --> 00:40:20.680
 But our goal is to touch every gas well site twice per fiscal year.

00:40:20.680 --> 00:40:25.120
 So we try to get out there every twice. That includes our E.T.J. as well.

00:40:25.120 --> 00:40:32.920
 Then you move down into some of our laboratory and things like that, where our goal is to provide services both for water and wastewater.

00:40:32.920 --> 00:40:37.440
 So we do a lot of samples per year to meet our compliance requirements.

00:40:37.440 --> 00:40:41.240
 They're sure it's a little bit slightly higher because we've actually had to do some replicates and different things.

00:40:41.240 --> 00:40:45.880
 That number is slightly higher. The base minimum is our goal.

00:40:45.880 --> 00:40:53.040
 And the last part of that is our environmentally sensitive areas metrics or ESA, as it's known here.

00:40:53.040 --> 00:40:55.720
 Then we move into our simply sustainable framework.

00:40:55.720 --> 00:41:00.120
 One of our goals as a city is to reduce our electric consumption.

00:41:00.120 --> 00:41:03.400
 This slide does not show that it actually shows it went up.

00:41:03.400 --> 00:41:09.920
 That's directly related to the last year we had one of the highest demands on potable water we've seen in years.

00:41:09.920 --> 00:41:18.480
 And 70 to 75 percent of the electric consumption for city facilities is driven by our water and wastewater plants.

00:41:18.480 --> 00:41:20.080
 So that number is directly related to that.

00:41:20.080 --> 00:41:28.360
 So when you see DWU come before you and show different things on their metrics and how much water was provided and treated last year, that's what drove that up.

00:41:28.360 --> 00:41:32.640
 That metrics a soft metric. It's a five percent goal to reduce annually.

00:41:32.640 --> 00:41:35.800
 So in other words, five percent below what we did in 2019.

00:41:35.800 --> 00:41:38.800
 It's not weather normalized. It doesn't account for growth.

00:41:38.800 --> 00:41:42.880
 It's just a base thing that was set by state law. That's one of our goals.

00:41:42.880 --> 00:41:47.000
 The right side shows our natural gas consumption, which is just key to note as well there.

00:41:47.000 --> 00:41:54.360
 Our trend is basically going down with the one anomaly during covid year of 2020.

00:41:54.360 --> 00:41:58.000
 Our department structure, we're basically 39 strong.

00:41:58.000 --> 00:42:02.040
 We cover sustainability efforts, which touch on a lot of different things.

00:42:02.040 --> 00:42:12.600
 And then we have our gas well inspections program, our industrial pretreatment, landfill, municipal lab, watershed protection, and then a small admin group that supports all of that.

00:42:12.600 --> 00:42:17.800
 So if you look at that as a breakdown, the admin is new. We've shifted around over the years.

00:42:17.800 --> 00:42:22.760
 We haven't been we were part of DWU's admin. We shifted over to sustainability.

00:42:22.760 --> 00:42:25.160
 We're trying to get that on the books correctly.

00:42:25.160 --> 00:42:30.120
 So it actually shows four because there's a proposal, a supplemental to add a position.

00:42:30.120 --> 00:42:40.240
 Sustainability is showing going down because, again, the director position and the assistant director position are moving out of sustainability and moving into admin, which makes more sense.

00:42:40.240 --> 00:42:45.280
 Water lab is water and wastewater labs shown as two different lines this year.

00:42:45.280 --> 00:42:51.000
 We're proposing to combine them into one. What will be the municipal lab has the bottom line on there.

00:42:51.000 --> 00:42:58.560
 So there's no increase in the number of staff. We're just combining that into one HBU or home business unit.

00:42:58.560 --> 00:43:06.680
 Gaswell State Flat landfill compliance shows up somewhat new. You may recall last year, we've always had landfill compliance with our reporting structure.

00:43:06.680 --> 00:43:14.800
 This year, we're specifically calling them out as an HBU to track all their costs and have that housed within environmental services sustainability.

00:43:14.800 --> 00:43:21.760
 So that's not a new ad. You'll see it on solid waste and recycling to show that they lose two positions and we gain two.

00:43:21.760 --> 00:43:25.600
 We didn't really gain them. They've always been part of us. They just weren't funded with us.

00:43:25.600 --> 00:43:34.040
 And then you'll see on watershed protection, that portion will stay directly on the drainage fund.

00:43:34.040 --> 00:43:40.920
 So we're asking for basically two and a half new positions this year. I'm going to start with the bottom one industrial pretreatment.

00:43:40.920 --> 00:43:48.320
 We have a FATS oil and greases program where we inspect grease traps, different things, all these pretreatment devices across the city.

00:43:48.320 --> 00:43:54.000
 We have to inspect those on a regular basis as well as every time a new certificate of occupancy is issued.

00:43:54.000 --> 00:43:58.840
 So we've been making do with one and a half full time staff and subsidizing with the supervisor.

00:43:58.840 --> 00:44:06.520
 That area has gone from basically 300 to 600 actively inspected grease traps over the last 10 years.

00:44:06.520 --> 00:44:10.680
 So it's time to take the half time position and make it be a full time position.

00:44:10.680 --> 00:44:19.320
 Then within admin, you might be surprised, but out of our almost 40 staff, we have no one person helping out all city departments for environmental compliance,

00:44:19.320 --> 00:44:25.680
 whether that be has waste, asbestos, due diligence, all the general aspects which aren't part of their day to day business.

00:44:25.680 --> 00:44:30.880
 Not how do you actually provide fresh water or potable water? How do you provide electricity?

00:44:30.880 --> 00:44:34.680
 But once you're doing that, what do you do with the bulbs you've created out of your building?

00:44:34.680 --> 00:44:39.840
 What do you do with that leftover waste? How do you do that correctly? So we're asking for a position to do that.

00:44:39.840 --> 00:44:48.080
 The top one under sustainability, we actually want to step up and put our best foot forward and add a position solely dedicated to water conservation.

00:44:48.080 --> 00:44:50.840
 We haven't had that. It's kind of been done on all different pieces.

00:44:50.840 --> 00:44:55.760
 It's time to step up. That aligns well with what DWU is doing on their long range planning.

00:44:55.760 --> 00:44:59.720
 It's time to have it. We'll work hand in hand with them. We're missing that opportunity.

00:44:59.720 --> 00:45:05.120
 So that's what we're asking for. Our strategic initiatives, I'm aligning here.

00:45:05.120 --> 00:45:08.320
 These are all things that we're working on that were council priorities.

00:45:08.320 --> 00:45:12.360
 So create a wildlife corridor map as part of the comp 2040 plan.

00:45:12.360 --> 00:45:17.200
 It's an ongoing process. We're working with different community members, different things to make that happen.

00:45:17.200 --> 00:45:24.640
 I should hopefully have a draft map back in front of council towards the end of the summer, probably August, September.

00:45:24.640 --> 00:45:31.120
 We're heavily involved with our climate action and adaptation plan. It's on track. However, it's a little delayed.

00:45:31.120 --> 00:45:36.200
 We were hoping to have it the first part of June. Right now, it looks like we'll probably complete that process sometime in August.

00:45:36.200 --> 00:45:43.720
 We've had a couple of delays on getting responses, getting things prepared and ensuring and outlining all of our targets and actions

00:45:43.720 --> 00:45:49.680
 that make sense for the city of Denton specifically, not to be generic and be like everybody else.

00:45:49.680 --> 00:45:53.000
 The last one on there is to expand our electric fleet and infrastructure.

00:45:53.000 --> 00:45:58.360
 So we're looking at EV charging, EV usage across all of Denton.

00:45:58.360 --> 00:46:04.280
 So we're not mandating EVs at this point, but we're looking at how can you charge them if you have them at your home or you have them at your business?

00:46:04.280 --> 00:46:10.480
 Where does that need to be? How do we get that equably across Denton? We're also looking at EV charging for the fleet.

00:46:10.480 --> 00:46:18.320
 How do we actually increase the number of EV vehicles we have and make use of those appropriately and right size our fleet?

00:46:18.320 --> 00:46:23.240
 So with that, I'll turn it over to Danielle unless you have any questions for me right now.

00:46:23.240 --> 00:46:29.760
 OK, thank you.

00:46:29.760 --> 00:46:33.920
 Right. Moving into financials for environmental services and sustainability.

00:46:33.920 --> 00:46:38.600
 This is a new fund, so we don't have the out years quite yet.

00:46:38.600 --> 00:46:46.480
 But the revenue there, you can see they have cost allocations, transfers in from DME water,

00:46:46.480 --> 00:46:53.560
 wastewater, drainage and solid waste, and then a small number of transfers in for twenty twenty four.

00:46:53.560 --> 00:47:01.680
 They also have the revenue from the water lab, pretreatment revenue and gas well inspection revenue for personal effort.

00:47:01.680 --> 00:47:05.680
 Sorry for expenses. We have the increase in personal services.

00:47:05.680 --> 00:47:11.120
 That's the three percent from the twenty three budget plus the cost of comp and class.

00:47:11.120 --> 00:47:15.520
 And then we have an average of two percent increase in operations.

00:47:15.520 --> 00:47:23.200
 And then the same as you saw with customer service, we have a supplemental line and there's supplemental requests total five forty one three ninety six,

00:47:23.200 --> 00:47:30.480
 which we'll get into on the next slides.

00:47:30.480 --> 00:47:42.320
 Oh, sorry. Sorry. I was just curious. I'm noticing that some of the fees increase just, I guess, as the number of.

00:47:42.320 --> 00:47:53.880
 Customers or whatever like that need to be inspected, go up, but the water lab has a flat rate from twenty twenty three.

00:47:53.880 --> 00:48:05.240
 I was wondering if there are they're doing the same number of inspections and then follow up question after that.

00:48:05.240 --> 00:48:08.120
 Michael Gagne, again, director for vital services, sustainability.

00:48:08.120 --> 00:48:12.560
 The water lab line is actually for the analysis we perform for outside customers.

00:48:12.560 --> 00:48:17.520
 So the number of samples coming in is staying the same and our internal costs at this point are projected to be the same.

00:48:17.520 --> 00:48:19.560
 That's why that line stays flat.

00:48:19.560 --> 00:48:25.240
 And is that I notice that it says coliform specifically, is that the only outside analysis we perform primarily?

00:48:25.240 --> 00:48:28.200
 Yes, there's a few others we do. Those are getting directly charged back.

00:48:28.200 --> 00:48:34.120
 If we do it, this is one one line that gets called out separately every year to make sure we're clear for that.

00:48:34.120 --> 00:48:37.200
 It includes both private and other city customers.

00:48:37.200 --> 00:48:40.640
 So we have various city municipalities that come to us for that analysis.

00:48:40.640 --> 00:48:42.560
 We have to do it for private water wells.

00:48:42.560 --> 00:48:46.840
 And I see that as a you know, there are a lot of small and growing communities in the area.

00:48:46.840 --> 00:48:54.080
 And like I said, water well testing, things like that, it seems like this is an opportunity for for the water lab to bring in external revenue.

00:48:54.080 --> 00:49:00.640
 I know it's you probably are cost competitive with commercial labs because they have a lot of different overhead.

00:49:00.640 --> 00:49:04.840
 So I just see that as perhaps an opportunity to grow a little.

00:49:04.840 --> 00:49:08.840
 You're not going to fund the department on it necessarily.

00:49:08.840 --> 00:49:16.800
 But to provide a service to Sanger Crum, the the groundwater district, that sort of thing.

00:49:16.800 --> 00:49:22.400
 Thank you. I think he's still on.

00:49:22.400 --> 00:49:27.440
 If it's if it's on this. I'm sorry.

00:49:27.440 --> 00:49:30.800
 Do you have a question? Yeah, I do. Just go ahead.

00:49:30.800 --> 00:49:35.200
 General fund clarification and revenues.

00:49:35.200 --> 00:49:38.120
 Oh, that is for her. OK. Well, I'll start with her.

00:49:38.120 --> 00:49:49.800
 OK, so that's a cost allocation to the to I'm sorry for the services that environmental services and sustainability provides to general fund.

00:49:49.800 --> 00:49:56.360
 OK, so it's for the thing. The other things that are funded under general fund that you guys work on and it gets transferred.

00:49:56.360 --> 00:50:00.280
 OK, and you don't you don't have a franchise fee. Is that correct?

00:50:00.280 --> 00:50:04.320
 We do not have a franchise fee for environmental services and sustainability.

00:50:04.320 --> 00:50:15.760
 OK. And the operations line, it's going up from the twenty twenty three estimate to preliminary by about two hundred thousand.

00:50:15.760 --> 00:50:18.600
 So great question. There's a lot of departments.

00:50:18.600 --> 00:50:26.280
 So if you come back to their as Michael discussed on the FTE slide, there are some departments that are moving into this fund specifically.

00:50:26.280 --> 00:50:28.920
 So we have some expenses that move with those as well.

00:50:28.920 --> 00:50:33.000
 OK. All right. That makes sense. Thank you.

00:50:33.000 --> 00:50:39.800
 Sure. Any other questions before we move on?

00:50:39.800 --> 00:50:44.280
 So Michael has no baseline adjustment requests.

00:50:44.280 --> 00:50:49.800
 We do have some supplemental requests. The top one is that two percent merit increase.

00:50:49.800 --> 00:50:54.800
 We have the former police department gun range environmental assessment.

00:50:54.800 --> 00:51:01.760
 We are we the budget team is proposing that that be funded in the current year versus in twenty four.

00:51:01.760 --> 00:51:05.680
 The same for this as best as assessment for city facilities.

00:51:05.680 --> 00:51:10.280
 We're also proposing that that be funded in the current year.

00:51:10.280 --> 00:51:15.640
 And then the next three lines are those positions that Michael touched on a little bit earlier.

00:51:15.640 --> 00:51:20.720
 And then finally, a compliance tracking software for fourteen thousand four hundred dollars.

00:51:20.720 --> 00:51:26.040
 So the total one time cost is two hundred and fourteen thousand four hundred of that.

00:51:26.040 --> 00:51:29.960
 We're proposing two hundred thousand be funded in the current fiscal year.

00:51:29.960 --> 00:51:34.720
 The recurring costs are all personnel related with the addition of the two and a half percent.

00:51:34.720 --> 00:51:41.240
 And then the merit increase and then the total requests three hundred and forty one thousand three hundred ninety six.

00:51:41.240 --> 00:51:45.920
 Two and a half of two and a half new FTE Barbara has a question.

00:51:45.920 --> 00:51:53.960
 Sure. Did you entertain like the asbestos assessment of contract having contract on that?

00:51:53.960 --> 00:51:58.960
 Because I'm wondering how many do you have enough to keep it busy?

00:51:58.960 --> 00:52:08.400
 And in times past, we have just contracted things like that rather than provide a full employment package for someone.

00:52:08.400 --> 00:52:10.280
 Yes, ma'am. Michael Gagne again.

00:52:10.280 --> 00:52:12.880
 And as you may notice, it's a one time cost.

00:52:12.880 --> 00:52:15.480
 There are no full time positions associated with that.

00:52:15.480 --> 00:52:19.400
 We do have a third party consultant that will perform that work for us.

00:52:19.400 --> 00:52:23.120
 I am also personally licensed to do it if I need to on behalf of the city.

00:52:23.120 --> 00:52:25.360
 But that is a third party contract.

00:52:25.360 --> 00:52:31.840
 It's just to get the funds to get us caught up because the bulk of our facilities don't have a current assessment on them

00:52:31.840 --> 00:52:35.280
 to ensure that we can do normal routine maintenance and other things on that.

00:52:35.280 --> 00:52:38.840
 It's a good planning practice to make sure we have that.

00:52:38.840 --> 00:52:51.200
 Thank you. And the same next steps as customer service with that.

00:52:51.200 --> 00:52:56.080
 We'll take any additional questions. Any other questions? No.

00:52:56.080 --> 00:52:59.760
 OK. Thank you. So all right.

00:52:59.760 --> 00:53:07.640
 Let me read. OK.

00:53:07.640 --> 00:53:11.400
 The Public Utilities Board will now at nine fifty three a.m.

00:53:11.400 --> 00:53:16.520
 convene in a closed meeting to deliberate the closed meeting item set forth on the agenda,

00:53:16.520 --> 00:53:23.120
 which include the following a I.D.P.B. twenty three one hundred and eleven deliberations

00:53:23.120 --> 00:53:31.480
 regarding certain public power utilities, competitive matters under Texas Government Code Section five five one point zero eight six.

00:53:31.480 --> 00:53:43.720
 Consultation with attorneys under Texas Government Code Section five five one point zero seven one.

00:53:43.720 --> 00:53:49.240
 OK. The Public Utilities Board has now at ten thirty seven a.m.

00:53:49.240 --> 00:53:53.960
 reconvened from the closed session and no official action was taken.

00:53:53.960 --> 00:54:13.080
 Now we'll go into the electric utility budget.

00:54:13.080 --> 00:54:20.760
 So we'll start off with some metrics, probably the most important one.

00:54:20.760 --> 00:54:24.040
 Is how do we compare to other utilities?

00:54:24.040 --> 00:54:30.440
 And as you can see, we are very close to lowest cost electric utility amongst all the

00:54:30.440 --> 00:54:44.120
 municipalities that we compare ourselves to. We do know that San Antonio, for example, is got a pending rate increase, so we should be with our recommendation

00:54:44.120 --> 00:54:50.120
 that you'll see later. No rate increase in fiscal year twenty four.

00:54:50.120 --> 00:54:56.120
 We'll remain one of the lowest cost providers in Texas.

00:54:56.120 --> 00:55:05.840
 And then, as you know, we are one hundred percent renewable and we always look at what our renewable costs are, our costs relative to other one hundred percent renewable

00:55:05.840 --> 00:55:13.920
 providers. In this case, those are reps, retail energy providers in the in the competitive area.

00:55:13.920 --> 00:55:24.040
 And as you can see, we're we're the lowest cost of any one hundred percent renewable option in Texas.

00:55:24.040 --> 00:55:28.240
 The other metric that we we track is our reliability metrics.

00:55:28.240 --> 00:55:37.200
 How how reliable are we? And there's two metrics that we really focus on, and that's system average interruption frequency or safety.

00:55:37.200 --> 00:55:45.920
 And as you can see, we've been consistently since 2009 below the average for the industry.

00:55:45.920 --> 00:55:51.120
 And the same can be said for the system average interruption duration index.

00:55:51.120 --> 00:56:01.840
 So we're very proud of those. We again this year were awarded by a award for reliability.

00:56:01.840 --> 00:56:06.280
 Our structure, we have basically six divisions.

00:56:06.280 --> 00:56:12.440
 We are adding we have added a few interesting positions or critical positions this year.

00:56:12.440 --> 00:56:26.840
 One, we added a Regulatory Affairs Administrator, someone that helps us with all of our matters in Austin before the legislature and before the P.U.C.T.

00:56:26.840 --> 00:56:30.080
 and ERCOT. As you know, we're a very highly regulated industry.

00:56:30.080 --> 00:56:39.640
 And so we added that position. We're also adding a public information officer that will help us to raise the visibility of D.M.E.

00:56:39.640 --> 00:56:44.600
 in the community and the programs that we offer for the benefit of our customers.

00:56:44.600 --> 00:56:49.880
 Total headcount is one hundred and eighty five employees.

00:56:49.880 --> 00:57:00.720
 Here's our FTE summary and be glad to answer any questions you might have on that.

00:57:00.720 --> 00:57:11.160
 And our summary, the rest of the summary for a total of one hundred and eighty seven, we're asking for two additional positions this year from one hundred eighty five.

00:57:11.160 --> 00:57:22.480
 And I'll point out that we're still below our employment levels that we had in 2020 before the pandemic.

00:57:22.480 --> 00:57:29.120
 And the two positions where we're requesting one is an electric system operations outage coordinator.

00:57:29.120 --> 00:57:40.520
 As I mentioned, we are very highly regulated and we are seeing more and more requirements with penalties from ERCOT and from P.U.C.T.

00:57:40.520 --> 00:57:50.880
 And this is not only a regulatory benefit, but also a safety benefit for all of our employees that are out working on lines, making sure that communication is good.

00:57:50.880 --> 00:58:05.880
 And we're working on de-energized and the the operators know the field staff know what lines are are engaged, operational with high voltage on them and which ones are not.

00:58:05.880 --> 00:58:10.520
 And then the other one is relay technician. We have keep adding substations.

00:58:10.520 --> 00:58:18.440
 We as you'll see in the capital budget, we're adding a number of automated metering applications.

00:58:18.440 --> 00:58:27.200
 And these require a lot of relay adjustments and relay settings and programming.

00:58:27.200 --> 00:58:35.440
 Our three strategic initiatives that will bring to your attention this year, one is to update the Denton Renewable Resource Plan.

00:58:35.440 --> 00:58:45.160
 The plan, which was adopted in 2007, 2017, is now getting a little dated.

00:58:45.160 --> 00:58:59.520
 And we've had significant changes in the market and the wholesale market that require us to relook at how we're going to continue to achieve the 100 percent renewable goal in a cost effective manner.

00:58:59.520 --> 00:59:14.480
 We continue to see high levels of rooftop solar penetration, and we want to take advantage of that as far as the community benefits that it provides in our 100 percent solar supply.

00:59:14.480 --> 00:59:24.000
 There are upcoming requirements for making sure that with this high level of renewables that we have in the state,

00:59:24.000 --> 00:59:34.640
 that we have adequate dispatchable generation to back them up in order to make sure that on days when the wind isn't blowing and a day like today where it's a little cloudy,

00:59:34.640 --> 00:59:43.160
 we don't have as much solar production that we have adequate resources to generate electricity to meet the needs of Texans.

00:59:43.160 --> 00:59:54.440
 So those are coming, and the plan will include options in the event that those dispatchable requirements become more burdensome.

00:59:54.440 --> 00:59:56.560
 And of course, we're always looking at costs.

00:59:56.560 --> 01:00:05.560
 And as those metrics I showed you initially, we're very sensitive to the costs, but we also want to make sure that we're achieving that 100 percent.

01:00:05.560 --> 01:00:12.160
 The second initiative is a new campus for the Denton Municipal Electric.

01:00:12.160 --> 01:00:17.080
 We've been growing. Our number of meter counts continues to go up.

01:00:17.080 --> 01:00:19.720
 Technology continues to move forward.

01:00:19.720 --> 01:00:29.520
 Our customers' expectations with regard to our integration of that technology and in providing service to them continues to move forward.

01:00:29.520 --> 01:00:37.520
 And we're at a point now where we've outgrown our existing structure, and we're looking.

01:00:37.520 --> 01:00:47.400
 So what we're going to be doing is we'll be doing a design and real estate acquisition in the next fiscal year and then begin construction,

01:00:47.400 --> 01:00:52.200
 which is a two year process in the subsequent two years.

01:00:52.200 --> 01:00:57.200
 Of course, that's subject to your approval and to City Council's approval.

01:00:57.200 --> 01:01:00.840
 And initiative three, we call utility of the future.

01:01:00.840 --> 01:01:08.040
 We will be adding significantly more automated distribution management system equipment.

01:01:08.040 --> 01:01:21.040
 That's a self-healing grid, if you will, to to increase our level of reliability for our customers for the high growth areas of our service territory,

01:01:21.040 --> 01:01:40.560
 which are out along 35E or 35W, the whole Hunter Cole Ranch area will be converting or will be installing that distribution system at a higher voltage than the existing 13 to KV system that we have around the rest of the city.

01:01:40.560 --> 01:01:59.400
 This enable us to meet the demands of those areas with EV, smart homes, all the other electrical demands that we're seeing on a much more cost effective basis because we can pack more power into a substation with this higher voltage.

01:01:59.400 --> 01:02:12.680
 That does require us to buy equipment for both the 13 to and the 25 KV systems, and that's part of the thing that's driving our need on the campus redevelopment.

01:02:12.680 --> 01:02:18.480
 We will be looking and in next fiscal year at the development of demand resource programs.

01:02:18.480 --> 01:02:26.920
 Demand resource programs will be programs where we'll incentivize customers to reduce their energy demand during peak periods.

01:02:26.920 --> 01:02:39.960
 Again, as the market becomes more and more dependent on renewables, especially solar, when the sun goes down, there's about a two to four hour period in which the market needs more resources,

01:02:39.960 --> 01:02:47.600
 and the cheapest resource is one is from is associated with a megawatt or a kilowatt hour that you never use.

01:02:47.600 --> 01:02:54.520
 And so we will be developing these programs over the next year or so.

01:02:54.520 --> 01:03:06.200
 And we're also next year, we've actually started this year, but next year we'll be laying out a new work management system to increase the productivity of our workforce.

01:03:06.200 --> 01:03:11.480
 We are reengineering the way we do work at DME so that we can do more with less.

01:03:11.480 --> 01:03:19.760
 And that's important when we have a level of growth that we are seeing in our community now.

01:03:19.760 --> 01:03:25.160
 And with that, I'm going to turn it over to Danielle.

01:03:25.160 --> 01:03:35.480
 Going back to the grid of the future, utility of the future section there, you mentioned Hunter Cole will be built out at twenty five KV.

01:03:35.480 --> 01:03:44.120
 Is there a long term plan to convert the entire system of twenty five KV or will we have two separate zones?

01:03:44.120 --> 01:03:46.080
 There's a billion reasons.

01:03:46.080 --> 01:03:50.960
 So it's a great question and we are evaluating that.

01:03:50.960 --> 01:04:01.840
 But the engineering evaluation of what the cost would be to go to twenty five KV throughout the system will take some time to develop and some money to do that analysis.

01:04:01.840 --> 01:04:06.840
 The analysis itself is several million dollars because it's a very complex system.

01:04:06.840 --> 01:04:13.160
 So the answer to your question is not immediately, maybe in the future, but that we many years down the road.

01:04:13.160 --> 01:04:19.720
 And that would because it would require every feeder gets every building, gets a new transformer, every substation feeder, gets a new transfer.

01:04:19.720 --> 01:04:30.240
 Every every transformer you see hanging on a pole today, every yard, every pad mount transformer would have to be basically replaced with a different voltage.

01:04:30.240 --> 01:04:40.400
 Thank you, which now with how long it takes you to actually if you can get the transformers, that's right.

01:04:40.400 --> 01:04:53.760
 Yeah, I think the other thing that I mentioned, the kind of response to that, Devin, is that I think I think there's probably some areas of our existing system that are probably OK at the 13 to that we probably don't need to change.

01:04:53.760 --> 01:05:08.120
 But I think I think until we do this engineering analysis and we have not budgeted this for next year, but at some point we need to ask for those dollars, do that engineering analysis, kind of a longitudinal type of study and set the course.

01:05:08.120 --> 01:05:15.040
 But again, we just made, you know, half a billion dollars worth of investments in our system, right?

01:05:15.040 --> 01:05:19.080
 We need to let those depreciate a little bit more before we start converting things.

01:05:19.080 --> 01:05:26.520
 But I think I think certainly in the future, probably well beyond our lifetimes probably makes some sense to do.

01:05:26.520 --> 01:05:34.440
 And I think it's our goal to at least have that plan in place so that future folks can look at look at that in the future.

01:05:34.440 --> 01:05:36.920
 But probably not everything will be converted.

01:05:36.920 --> 01:05:40.000
 Yeah, it's expensive proposition.

01:05:40.000 --> 01:05:41.720
 It's a very expensive proposition.

01:05:41.720 --> 01:05:53.760
 And typically in cities, communities that have done it, it's done sequentially one area by another based on the substation that they're connected to.

01:05:53.760 --> 01:05:57.560
 So you have to you can't convert the system all at one time.

01:05:57.560 --> 01:06:03.600
 It would take many, many years to transition over in order to maintain that reliability that we're known for.

01:06:03.600 --> 01:06:05.400
 And we want to continue to have.

01:06:05.400 --> 01:06:10.240
 Yeah, the other just really quick, the other the other nugget that I'll kind of put out there.

01:06:10.240 --> 01:06:16.800
 You know, so so our our linemen, our operations folks have, you know, it's called fr rated uniforms.

01:06:16.800 --> 01:06:20.240
 Right. And those are rated to our current system.

01:06:20.240 --> 01:06:25.760
 Our our sister utility right next door to us co-serve doesn't have the same voltage.

01:06:25.760 --> 01:06:32.160
 So from from a mutual aid standpoint, they can come in and help us, but we can't help them.

01:06:32.160 --> 01:06:37.440
 Right. So it kind of makes it difficult to have that type of relationship with only it's only a one way relationship.

01:06:37.440 --> 01:06:45.480
 Right. And so I think that this is also going to help us with that and that we're going to have to relook at all our staff's uniforms, make sure they're at the higher voltage.

01:06:45.480 --> 01:06:52.560
 As a result of that, now we can expand the mutual aid type of support that we can give other utilities to the surrounding area.

01:06:52.560 --> 01:06:55.280
 But then they can also then reciprocate back to us as well.

01:06:55.280 --> 01:07:00.800
 So in the event that there's an emergency and we need help, you know, co-serve as an example is right next door to us.

01:07:00.800 --> 01:07:06.240
 They could potentially help us. Now, if it's widespread, probably got to do a whole lot of good because they'll be impacted as well.

01:07:06.240 --> 01:07:14.720
 But again, just as we're evaluating, this is all coming really out of out of winter storm area, the things that we've seen over the last two winters and certainly a very hot summer last year.

01:07:14.720 --> 01:07:19.840
 How can we how can we shore up the resources that we have to better support our customers?

01:07:19.840 --> 01:07:28.760
 Yeah. And one thing I'll add to that is that that twenty five KV equipment is pretty universal across Texas and much of the United States.

01:07:28.760 --> 01:07:39.680
 So from mutual aid perspective and from an inventory perspective, if we were to hit it hit with a tornado or something that took out our system,

01:07:39.680 --> 01:07:51.640
 knowing that our neighbors and other utilities have the same size equipment that we could borrow and replace would get the lights back on quicker.

01:07:51.640 --> 01:08:08.360
 And with 13 to KV, there's there's very few communities in the U.S. that have 13 to KV. So we don't get that diversity that that inventory diversity that we would get with a twenty five KV system.

01:08:08.360 --> 01:08:10.360
 Danielle.

01:08:14.360 --> 01:08:25.160
 So moving into the financial section, the assumptions are the two and a half percent load growth that you previously saw in the utility forecast presentation.

01:08:25.160 --> 01:08:35.280
 The revenue projections include no rate increase in twenty four, but we do propose a rate increase beginning in twenty five.

01:08:35.280 --> 01:08:41.960
 And then additionally, a proposed three percent rate increase from twenty five to twenty eight.

01:08:41.960 --> 01:08:51.600
 And then the expense projections include the increase in personnel costs due to the compensation classification study and the craft pay adjustments,

01:08:51.600 --> 01:09:01.120
 future merit increases and annual inflation, and then an average two percent increase in operations and maintenance costs.

01:09:01.120 --> 01:09:13.760
 So the pro forma here, you can see where we're estimating to come in under budget that's based off of the purchase power forecast and the components discussed in closed session.

01:09:13.760 --> 01:09:26.920
 The same for the preliminary budget where we're expecting to be under the current year's budget based on the purchase power forecast and the components discussed in closed session.

01:09:26.920 --> 01:09:34.800
 Additionally, the purchase power expenses are also expected to decrease in line with the revenue decrease.

01:09:34.800 --> 01:09:37.480
 You can see that increase in personnel costs.

01:09:37.480 --> 01:09:46.720
 Again, that's the comp and class and the three percent O and M is an increase of two percent.

01:09:46.720 --> 01:09:53.400
 The debt service increases appropriately with our capital improvement plan, which we'll see shortly.

01:09:53.400 --> 01:10:02.640
 We have baseline adjustments in the amount of two point four million and then several supplemental requests in the amount of one point eight million.

01:10:02.640 --> 01:10:08.360
 This pro forma does contemplate a three percent increase for beginning in twenty five to twenty eight.

01:10:08.360 --> 01:10:21.800
 That allows us to be within our target reserves and we are debt service coverage ratio beginning in twenty six.

01:10:21.800 --> 01:10:32.960
 This is the same financial data, but contemplates a twelve and a half percent increase in twenty five versus the three year multi year rate increase.

01:10:32.960 --> 01:10:36.920
 Proposed rate changes, the cost of service study is ongoing.

01:10:36.920 --> 01:10:43.440
 So we plan to bring back their proposed rate changes as a result of that study in the coming months.

01:10:43.440 --> 01:10:46.440
 The capital plan is this is the high level summary.

01:10:46.440 --> 01:10:51.960
 You can see the building that Terry referred to in the strategic initiatives is the second line.

01:10:51.960 --> 01:11:05.240
 We have a total of ninety three million proposed for twenty four, a total of four hundred and eleven point nine million for the total five year.

01:11:05.240 --> 01:11:16.800
 So here's a summary by funding type. Again, the same totals just broken down by how we plan to fund those different projects.

01:11:16.800 --> 01:11:20.200
 Change requests, DME has a handful of baseline adjustments.

01:11:20.200 --> 01:11:27.600
 Again, as you saw with the other presentations we've included in that right hand column, how we suggest funding those.

01:11:27.600 --> 01:11:32.000
 All of these are suggested to be added to the operating budget.

01:11:32.000 --> 01:11:40.360
 The first one there is an insurance increase to premiums of six hundred and seventy five thousand dollars apprenticeship training.

01:11:40.360 --> 01:11:44.960
 DME has seen an increase in the number of apprentices that they have within the utility.

01:11:44.960 --> 01:11:49.840
 So to go along with that, we need to train those apprentices.

01:11:49.840 --> 01:11:55.120
 Additionally, they're also growing their program for their existing journeymen.

01:11:55.120 --> 01:12:02.800
 So one hundred and fifty thousand for that personal protective equipment, an increase of eighty five thousand.

01:12:02.800 --> 01:12:06.360
 The compliance consultant one hundred and fifty thousand.

01:12:06.360 --> 01:12:11.480
 The transformer test equipment is a one time cost of three hundred and thirty thousand.

01:12:11.480 --> 01:12:21.240
 And then finally, on this slide, the consultant fees for the emergency services retainer of two hundred thousand dollars.

01:12:21.240 --> 01:12:29.120
 More baseline adjustment increases, application maintenance and support contracts increase of one hundred thousand dollars.

01:12:29.120 --> 01:12:36.320
 The additional testing and repair to maintain deck maintain the deck three hundred and twenty five thousand dollars.

01:12:36.320 --> 01:12:46.280
 And accessory electric equipment, they exempt them for their trucks one hundred and twenty five thousand dollars to go along with the previous two trainings.

01:12:46.280 --> 01:12:52.120
 We saw this is an increase for the substation tax of three hundred three thousand dollars.

01:12:52.120 --> 01:13:05.800
 And then finally, the Texas Meter and Device contract of sixty thousand dollars for a total of two million twenty three thousand dollars for recurring and then three hundred and thirty one time.

01:13:05.800 --> 01:13:10.640
 The supplemental packages, the merit increase is at the top.

01:13:10.640 --> 01:13:21.600
 The new data network assessment, design and planning three hundred and fifty thousand dollars, the outage coordinator and the relay technician, which Terry discussed earlier in the presentation.

01:13:21.600 --> 01:13:26.000
 Grant for storage of electrical equipment, two hundred and ten thousand dollars.

01:13:26.000 --> 01:13:32.760
 And finally, the construction standards for the voltage conversion, a one time cost of four hundred and fifty thousand dollars.

01:13:32.760 --> 01:13:37.680
 We're suggesting that all of these be funded from the operating budget.

01:13:37.680 --> 01:13:47.400
 In the operating budget, these all of these requests on this slide are funded from the existing vehicle replacement plan.

01:13:47.400 --> 01:13:53.040
 So this is no additional funding. This is this is being funded from existing funds.

01:13:53.040 --> 01:14:06.000
 I have to pick up truck for sixty five thousand dollars and then two forty eight foot service bucket trucks for two hundred and fifty nine thousand seven hundred forty each for a total of two point four million.

01:14:06.000 --> 01:14:14.240
 So if these aren't additional, they're replacements of something we currently have or these are additional that comes out of the fleet.

01:14:14.240 --> 01:14:16.480
 These are additions.

01:14:16.480 --> 01:14:19.840
 The funding source is from existing funding, though.

01:14:19.840 --> 01:14:23.080
 All right. Great.

01:14:23.080 --> 01:14:29.680
 And then those same next steps that we've seen in the other presentations.

01:14:29.680 --> 01:14:37.320
 I'll take any additional questions. Thank you.

01:14:37.320 --> 01:14:39.880
 See none. Thank you. All right.

01:14:39.880 --> 01:14:43.560
 It is ten fifty eight and that is the agenda.

01:14:43.560 --> 01:14:48.400
 So, Billy, would you like to move to adjourn to adjourn, please?

01:14:48.400 --> 01:14:49.200
 We are adjourned.