WEBVTT 00:00:00.000 --> 00:00:03.200 - Okay, it is six o'clock. 00:00:03.200 --> 00:00:06.320 Let's call the March 25th, 2019 00:00:06.320 --> 00:00:08.580 Public Utilities Board to order. 00:00:08.580 --> 00:00:10.840 The first item, and we do have a quorum. 00:00:10.840 --> 00:00:12.800 Yay. (laughs) 00:00:12.800 --> 00:00:15.080 The first item is to receive a report 00:00:15.080 --> 00:00:17.520 and hold a discussion recommending the approval 00:00:17.520 --> 00:00:19.600 of the Wastewater Service Agreements. 00:00:19.600 --> 00:00:25.160 - Good afternoon, Board. 00:00:25.160 --> 00:00:27.160 I am Kenny Banks. 00:00:27.160 --> 00:00:29.400 I'm the General Manager of Utilities. 00:00:29.400 --> 00:00:33.040 And I am going to give you a quick presentation 00:00:33.040 --> 00:00:37.200 on the Robeson Water Reclamation Plant Abandonment Project. 00:00:37.200 --> 00:00:41.620 We've been working on this project now for a couple of years. 00:00:41.620 --> 00:00:45.480 It's a very important project for the area. 00:00:45.480 --> 00:00:48.400 So right now, Robeson Ranch is serviced 00:00:48.400 --> 00:00:51.180 by its own wastewater treatment plant. 00:00:51.180 --> 00:00:53.320 And that wastewater treatment plant right now 00:00:53.320 --> 00:00:58.320 has a treatment capacity of about 375,000 gallons per day. 00:00:58.620 --> 00:01:00.760 And due to the development of Robeson Ranch, 00:01:00.760 --> 00:01:02.320 it is reaching capacity. 00:01:02.320 --> 00:01:05.580 Robeson is roughly about 1/3 built out right now. 00:01:05.580 --> 00:01:09.240 This plant is getting close to its capacity 00:01:09.240 --> 00:01:12.160 and getting close to us needing to push 00:01:12.160 --> 00:01:14.880 into the design phase for a new plant. 00:01:14.880 --> 00:01:16.400 I don't know if anyone's priced 00:01:16.400 --> 00:01:17.960 wastewater treatment plants lately, 00:01:17.960 --> 00:01:19.360 but they're very expensive. 00:01:19.360 --> 00:01:24.360 And as a result, we are estimating that at full development, 00:01:24.360 --> 00:01:26.960 the plant would need to be expanded 00:01:26.960 --> 00:01:30.380 to about a 1.6 million gallon per day plant. 00:01:30.380 --> 00:01:32.840 And that is estimated to cost somewhere 00:01:32.840 --> 00:01:37.040 around roughly $16 million, quite a bit of money. 00:01:37.040 --> 00:01:42.040 And because of this issue, the Robeson folks reached out 00:01:42.040 --> 00:01:47.200 to the City of Denton for possible other solutions 00:01:47.200 --> 00:01:49.360 other than just constructing the plant. 00:01:49.360 --> 00:01:52.120 And it's a vested interest for the City of Denton as well. 00:01:52.120 --> 00:01:54.680 Even though Robeson owns the plant, we operate it. 00:01:54.680 --> 00:01:58.400 And we have intentions, according to our design criteria, 00:01:58.400 --> 00:02:03.400 to place a larger plant in the Hickory Creek Basin 00:02:03.400 --> 00:02:05.200 at some point in the future. 00:02:05.200 --> 00:02:08.280 And just from an economies of scale standpoint, 00:02:08.280 --> 00:02:11.320 it doesn't make a lot of sense to have a smaller plant 00:02:11.320 --> 00:02:13.280 in the Hickory Creek Basin, a larger plant 00:02:13.280 --> 00:02:14.560 in the Hickory Creek Basin, 00:02:14.560 --> 00:02:16.840 and then also the Pecan Creek plant. 00:02:16.840 --> 00:02:21.840 So we went shopping around for some possible solutions. 00:02:22.140 --> 00:02:24.840 Like I said, this has been going on several years. 00:02:24.840 --> 00:02:27.940 The Denton City Manager, Assistant City Manager 00:02:27.940 --> 00:02:30.360 for Utilities and Wastewater Staff met with Robeson 00:02:30.360 --> 00:02:33.640 to talk about some possible solutions. 00:02:33.640 --> 00:02:34.960 We reached an understanding 00:02:34.960 --> 00:02:39.300 to abandon the Robeson Ranch Water Reclamation Plant 00:02:39.300 --> 00:02:42.040 and then pump all wastewater flows from Robeson Ranch 00:02:42.040 --> 00:02:44.280 to Denton's wastewater collection system, 00:02:44.280 --> 00:02:46.900 ultimately being treated at Pecan Creek. 00:02:46.900 --> 00:02:48.760 And that project provides benefits 00:02:48.760 --> 00:02:51.340 for Robeson Ranch and the city. 00:02:51.340 --> 00:02:54.600 So some quick highlights. 00:02:54.600 --> 00:02:57.200 We agreed that we would facilitate the acquisition 00:02:57.200 --> 00:02:59.160 of the off-site easements, complete design, 00:02:59.160 --> 00:03:02.240 and construct the wastewater diversion facilities 00:03:02.240 --> 00:03:04.920 necessary for this project to be in place 00:03:04.920 --> 00:03:07.320 and to decommission the plant. 00:03:07.320 --> 00:03:09.600 They will pay us $4 million 00:03:09.600 --> 00:03:12.720 for the wastewater diversion project. 00:03:12.720 --> 00:03:14.720 Once it's completed and in place, 00:03:14.720 --> 00:03:17.960 Robeson agreed to pay wastewater fees on new construct, 00:03:17.960 --> 00:03:20.120 impact fees, I should say, on new construction 00:03:20.120 --> 00:03:23.700 that occurred in their facility. 00:03:23.700 --> 00:03:27.440 With that in place, the Robeson development 00:03:27.440 --> 00:03:32.260 will not need the additional wastewater treatment capacity 00:03:32.260 --> 00:03:35.160 and that particular facility will be decommissioned 00:03:35.160 --> 00:03:37.760 and then converted into a pump station 00:03:37.760 --> 00:03:41.520 to facilitate this type of development. 00:03:41.520 --> 00:03:43.180 Robeson will receive a credit 00:03:43.180 --> 00:03:47.200 since they are paying for the actual cost 00:03:47.200 --> 00:03:49.920 associated with the installation of this facility. 00:03:49.920 --> 00:03:52.840 $1,000 off of their impact fee, 00:03:52.840 --> 00:03:56.820 a $1,000 impact fee credit for new homes 00:03:56.820 --> 00:03:59.640 up to a total of 1,000 homes. 00:03:59.640 --> 00:04:02.320 So total of a million dollars. 00:04:02.320 --> 00:04:05.680 So real briefly, this is the Robeson system 00:04:05.680 --> 00:04:07.800 as it exists today. 00:04:07.800 --> 00:04:12.040 We've got the Robeson Ranch Southwest Lift Station here 00:04:12.040 --> 00:04:14.460 that actually conveys wastewater 00:04:14.460 --> 00:04:18.000 to the Robeson Ranch Water Reclamation Plant. 00:04:18.000 --> 00:04:19.640 And then over on this side, 00:04:19.640 --> 00:04:21.200 there's a lot of topography out there. 00:04:21.200 --> 00:04:23.520 We've got the East Lift Station, 00:04:23.520 --> 00:04:24.920 which collects from this area 00:04:24.920 --> 00:04:27.280 and basically through a force main, 00:04:27.280 --> 00:04:29.480 moves that waste material over 00:04:29.480 --> 00:04:33.560 to the Robeson Ranch Water Reclamation Plant. 00:04:33.560 --> 00:04:38.240 What we're proposing to do is actually collect here, 00:04:38.240 --> 00:04:42.240 lift to this plant, turn this plant into a pump station, 00:04:42.240 --> 00:04:43.960 run this force main in a direction 00:04:43.960 --> 00:04:45.820 that is opposite of what it is right now 00:04:45.820 --> 00:04:47.720 to the Eastern Lift Station. 00:04:47.720 --> 00:04:49.860 And then I've got a separate graphic over here. 00:04:49.860 --> 00:04:51.960 Here's the Eastern Lift Station. 00:04:51.960 --> 00:04:54.200 This is a new line that we will construct, 00:04:54.200 --> 00:04:59.200 a new force main that will convey the wastewater here, 00:04:59.200 --> 00:05:05.320 right to the edge of the Hunter Ranch property on this side, 00:05:05.320 --> 00:05:09.480 down to the Robeson Ranch Road line, 00:05:09.480 --> 00:05:12.760 that's our Robeson Ranch Road intersection here. 00:05:12.760 --> 00:05:14.760 And then basically, this is where it turns 00:05:14.760 --> 00:05:16.560 from a force main to a gravity main 00:05:16.560 --> 00:05:19.640 to be conveyed over across I-35 00:05:19.640 --> 00:05:22.840 and hooking into the existing 18-inch gravity sewer system 00:05:22.840 --> 00:05:24.200 over near Crawford Road. 00:05:24.200 --> 00:05:31.800 The Hunter Ranch facility is owned by Petrus and Hillwood. 00:05:31.800 --> 00:05:36.800 We met with them and worked with the Hillwood group 00:05:36.800 --> 00:05:39.000 to acquire the needed off-site easement 00:05:39.000 --> 00:05:41.680 that runs through the Hunter Ranch property. 00:05:41.680 --> 00:05:42.900 It's a little hard to see, 00:05:42.900 --> 00:05:46.020 but this easement right here is on Robeson's property. 00:05:46.020 --> 00:05:47.360 It switches over here, 00:05:47.360 --> 00:05:51.060 and this easement right here is on the Hunter property. 00:05:51.060 --> 00:05:57.560 So we met with them, 00:05:57.560 --> 00:05:59.120 put together a development agreement 00:05:59.120 --> 00:06:02.320 for wastewater services that included the easement documents 00:06:02.320 --> 00:06:05.840 that would be needed to get this project on the ground. 00:06:05.840 --> 00:06:09.240 The easements were granted for a nominal $20 fee. 00:06:09.240 --> 00:06:12.620 We also agreed to provide wastewater capacity 00:06:12.620 --> 00:06:14.720 in the gravity main that's running through the property 00:06:14.720 --> 00:06:17.180 for at least 800 single-family equivalents. 00:06:17.180 --> 00:06:19.000 That would provide some capacity for growth 00:06:19.000 --> 00:06:20.900 to start in that area. 00:06:20.900 --> 00:06:23.440 In that area in Hunter Ranch, 00:06:23.440 --> 00:06:26.160 wastewater impact fees will be required for all connections 00:06:26.160 --> 00:06:29.080 at whatever the prevailing rate is at the time. 00:06:29.080 --> 00:06:32.100 And at some point, the Robeson flows 00:06:32.100 --> 00:06:33.480 are actually going to be diverted 00:06:33.480 --> 00:06:36.880 through Hunter Ranch and Coal Ranch in the future. 00:06:36.880 --> 00:06:39.760 We're probably talking a couple of decades 00:06:39.760 --> 00:06:41.640 somewhere around in that timeframe. 00:06:41.640 --> 00:06:43.520 After the sewer lines and those developments 00:06:43.520 --> 00:06:44.920 have been constructed and the waste 00:06:44.920 --> 00:06:47.600 is actually transferred through that system, 00:06:47.600 --> 00:06:49.920 which is referred to as the Roart branch, 00:06:49.920 --> 00:06:52.760 then the existing force main for Robeson will be abandoned, 00:06:52.760 --> 00:06:55.080 and the only service that will be available 00:06:55.080 --> 00:06:57.380 will be the gravity line to the south. 00:06:57.380 --> 00:07:04.120 So in summary, the project cost is $4 million for Robeson. 00:07:04.120 --> 00:07:07.480 Their benefit is the avoided cost 00:07:07.480 --> 00:07:09.880 of the additional plant expansions, the permits, 00:07:09.880 --> 00:07:11.720 and all the complications associated 00:07:11.720 --> 00:07:14.260 with that plant. 00:07:14.260 --> 00:07:18.580 They do get an impact fee credit, as we mentioned. 00:07:18.580 --> 00:07:20.920 Our cost on that is nothing. 00:07:20.920 --> 00:07:23.320 Basically, this will be enough to cover 00:07:23.320 --> 00:07:26.920 the cost of the installation, according to our estimates. 00:07:26.920 --> 00:07:31.360 Petrus-Hillwood, their cost is the dedication of the land. 00:07:31.360 --> 00:07:34.920 Their benefit is to basically get 800 00:07:34.920 --> 00:07:37.920 single-family equivalents of wastewater capacity, 00:07:37.920 --> 00:07:40.320 and then our cost on that's that nominal 20 00:07:40.320 --> 00:07:42.880 that I mentioned to you earlier. 00:07:42.880 --> 00:07:45.760 Denton's savings are estimated to be annually 00:07:45.760 --> 00:07:49.720 when we're comparing a wastewater diversion project 00:07:49.720 --> 00:07:52.160 like this instead of a 1.6 million gallon 00:07:52.160 --> 00:07:54.420 per day plant operation. 00:07:54.420 --> 00:07:58.200 We estimate that our annual O&M cost 00:07:58.200 --> 00:08:04.880 and on a total 20-year basis will come in somewhere 00:08:04.880 --> 00:08:07.440 around $16.6 million. 00:08:07.440 --> 00:08:12.440 So, comparing the plant option annual O&M of 895 00:08:12.440 --> 00:08:14.920 to our wastewater diversion project, 00:08:14.920 --> 00:08:18.680 which we estimate will be about $65,000 a year, 00:08:18.680 --> 00:08:21.040 would save an annual of 830, 00:08:21.040 --> 00:08:24.600 and basically we're looking at a 20-year lifespan 00:08:24.600 --> 00:08:28.800 approximately of this asset, so about $16.6 million. 00:08:28.800 --> 00:08:32.120 So, the summary is basically it provides benefits 00:08:32.120 --> 00:08:35.880 to everyone, and Denton is being able 00:08:35.880 --> 00:08:39.080 to avoid the operational cost. 00:08:39.080 --> 00:08:42.260 Robeson gets the avoidance of the cost of the plant, 00:08:42.260 --> 00:08:45.160 and then Petrus Hillwood gets the opportunity 00:08:45.160 --> 00:08:47.520 to have those 800 SFPs. 00:08:47.520 --> 00:08:50.080 I'd be glad to answer any questions. 00:08:50.080 --> 00:08:50.920 - Questions? 00:08:50.920 --> 00:08:51.760 Oh. 00:08:51.760 --> 00:08:56.700 - What is the whole impact fee credit? 00:08:56.700 --> 00:08:57.540 - Okay. 00:08:57.540 --> 00:08:58.360 - What is that all about? 00:08:58.360 --> 00:09:00.960 Why are you giving them a credit? 00:09:00.960 --> 00:09:05.680 - The impact fees are designed to pay for the impact 00:09:05.680 --> 00:09:06.960 on the system, right? 00:09:06.960 --> 00:09:10.040 So, the impact on this particular system is two-fold. 00:09:10.040 --> 00:09:12.840 One of those impacts is the cost associated 00:09:12.840 --> 00:09:16.920 with building this force main system and pump station 00:09:16.920 --> 00:09:19.720 and all those things internal to Robeson. 00:09:19.720 --> 00:09:21.080 And the second component of it 00:09:21.080 --> 00:09:23.200 is the actual treatment capacity 00:09:23.200 --> 00:09:25.800 that we're going to be using at Pecan Creek. 00:09:25.800 --> 00:09:29.080 Because we're conveying this all the way over, 00:09:29.080 --> 00:09:31.240 Pecan Creek will have a higher wastewater flow, 00:09:31.240 --> 00:09:33.240 and therefore we're entitled to an impact fee 00:09:33.240 --> 00:09:35.000 to offset the things we're going to have to do 00:09:35.000 --> 00:09:38.760 to basically deal with that higher flow. 00:09:38.760 --> 00:09:41.760 So, they are being given a credit 00:09:41.760 --> 00:09:43.960 because they're actually fronting the cost 00:09:43.960 --> 00:09:47.400 of the construction that is internal to their facility. 00:09:47.400 --> 00:09:49.880 And so they are paying us $4 million, 00:09:49.880 --> 00:09:53.900 which is enough cost to cover all of the construction. 00:09:53.900 --> 00:09:57.600 So really we're giving them a credit to offset that cost 00:09:57.600 --> 00:10:01.200 and still recuperate impact fees at a level 00:10:01.200 --> 00:10:03.160 that's high enough to be able to allow us 00:10:03.160 --> 00:10:05.400 to do the treatment at the plant. 00:10:05.400 --> 00:10:10.400 So, the reason is that they're basically paying for a good, 00:10:10.400 --> 00:10:15.240 they're paying for the entirety of this system 00:10:15.240 --> 00:10:16.800 at the time that it's installed. 00:10:16.800 --> 00:10:19.000 - Okay. 00:10:19.000 --> 00:10:23.560 And so the impact fees, those are going to be credited once? 00:10:23.560 --> 00:10:24.400 - That's correct. 00:10:24.400 --> 00:10:27.040 It's for those first 1,000 homes, 00:10:27.040 --> 00:10:30.720 and as soon as they get through with those first 1,000, 00:10:30.720 --> 00:10:32.080 the remainder of those homes, 00:10:32.080 --> 00:10:36.320 I think they're at about 7,200, 7,300 00:10:36.320 --> 00:10:38.200 is their total build out. 00:10:38.200 --> 00:10:40.460 They've got about 2,300 now. 00:10:40.460 --> 00:10:44.440 So, everything past that 1,000 homes that comes in 00:10:44.440 --> 00:10:48.140 after this facility is built will be charged 00:10:48.140 --> 00:10:49.680 the full impact fee at whatever 00:10:49.680 --> 00:10:51.440 the prevailing rate is at the time. 00:10:51.440 --> 00:10:57.900 So, it's just an attempt to try to acknowledge 00:10:57.900 --> 00:11:00.600 that they're coming up with all of the upfront cost 00:11:00.600 --> 00:11:04.760 for the facility on their property 00:11:04.760 --> 00:11:09.360 and conveyance of the waste to our Crawford branch. 00:11:09.360 --> 00:11:11.920 - Why did they, and you may not know the answer to this, 00:11:11.920 --> 00:11:14.520 but I'm just wondering, why did they build this plant? 00:11:14.520 --> 00:11:17.360 - Could you go closer to your mic so it's not picking it up? 00:11:17.360 --> 00:11:21.960 - I'm just curious as to why they built this plant 00:11:21.960 --> 00:11:24.040 in the first place that wasn't going to be able 00:11:24.040 --> 00:11:27.160 to sustain their growth, 00:11:27.160 --> 00:11:29.600 and now they're turning to the citizens of Denton 00:11:29.600 --> 00:11:31.080 to help. 00:11:31.080 --> 00:11:34.080 - Right, two things I can say about that. 00:11:34.080 --> 00:11:39.080 One, the cost of the plant, 00:11:39.080 --> 00:11:43.080 plant costs have gone up dramatically compared 00:11:43.080 --> 00:11:45.000 to consumer price index. 00:11:45.000 --> 00:11:48.760 And so, it's a very large cost 00:11:48.760 --> 00:11:51.720 that they're going to have to incur. 00:11:51.720 --> 00:11:56.640 And in terms of your statement about the rate payers 00:11:56.640 --> 00:11:59.200 of Denton, this is a cost neutral situation 00:11:59.200 --> 00:12:01.560 for the rate payers because they're going to be paying 00:12:01.560 --> 00:12:05.360 wastewater fees, because they have paid for the construction 00:12:05.360 --> 00:12:08.600 of the facility itself, and because they're going 00:12:08.600 --> 00:12:12.040 to be paying at first a discounted impact fee, 00:12:12.040 --> 00:12:14.400 and then after those first 1,000 homes, 00:12:14.400 --> 00:12:17.920 the full impact fee, the rate that they're being charged 00:12:17.920 --> 00:12:20.680 and the impact fee that they're being charged 00:12:20.680 --> 00:12:23.520 after those 1,000 homes is exactly the same 00:12:23.520 --> 00:12:26.680 as any other rate payer in the city would be charged. 00:12:26.680 --> 00:12:31.680 So, it's rate neutral in that cost. 00:12:31.680 --> 00:12:35.320 The rate payers are not bearing any additional cost. 00:12:35.320 --> 00:12:37.600 - Okay, that's the one thing that I wanted to make. 00:12:37.600 --> 00:12:38.680 - That's the one thing residents pay the city of Denton 00:12:38.680 --> 00:12:39.520 for wastewater. 00:12:39.520 --> 00:12:40.360 - That's correct. 00:12:40.360 --> 00:12:41.200 - Okay. 00:12:41.200 --> 00:12:44.240 - Yeah, they will pay for the wastewater services, correct. 00:12:44.240 --> 00:12:46.040 - Okay, that's what I wanted you to say. 00:12:46.040 --> 00:12:46.880 - Okay. 00:12:46.880 --> 00:12:47.700 - That was a good clarification. 00:12:47.700 --> 00:12:48.540 - Yes. 00:12:48.540 --> 00:12:50.240 - I just had a quick question. 00:12:50.240 --> 00:12:53.360 Do we have the capacity for all this stuff? 00:12:53.360 --> 00:12:56.280 Are we going to need to expand our plant? 00:12:56.280 --> 00:12:59.160 - We do have the capacity to treat it. 00:12:59.160 --> 00:13:02.520 As I said, at some point in the future, 00:13:02.520 --> 00:13:04.560 we will be looking at locating 00:13:04.560 --> 00:13:06.640 a wastewater treatment facility 00:13:06.640 --> 00:13:09.680 within the Hickory Creek area. 00:13:09.680 --> 00:13:12.120 But right now, we have the capacity 00:13:12.120 --> 00:13:13.280 to be able to deal with it. 00:13:13.280 --> 00:13:16.680 And we have another project that we'll be bringing to you 00:13:16.680 --> 00:13:20.760 later tonight to talk about some design work 00:13:20.760 --> 00:13:22.580 and some experimental work that has been done 00:13:22.580 --> 00:13:24.200 on the Pecan Creek plant 00:13:24.200 --> 00:13:27.920 that actually appears to be able to allow us 00:13:27.920 --> 00:13:30.320 with the existing footprint of the plant 00:13:30.320 --> 00:13:35.160 to have somewhere between four and five million gallon 00:13:35.160 --> 00:13:37.760 per day of additional capacity. 00:13:37.760 --> 00:13:40.080 So that'll buy us quite a bit of time 00:13:40.080 --> 00:13:42.200 even with this waste stream in place 00:13:42.200 --> 00:13:46.240 and allow us to push off the capital project 00:13:46.240 --> 00:13:48.960 associated with building that larger Hickory Creek plant 00:13:48.960 --> 00:13:50.720 as long as we possibly can. 00:13:50.720 --> 00:13:53.840 So the short answer is yes, 00:13:53.840 --> 00:13:55.800 but we're also looking at that. 00:13:55.800 --> 00:13:58.080 - And any new homes being built out there 00:13:58.080 --> 00:13:59.240 will pay the impact fee, 00:13:59.240 --> 00:14:01.440 just like any other development community. 00:14:01.440 --> 00:14:02.280 - That's correct. 00:14:02.280 --> 00:14:05.480 - All right, and that's the whole purpose. 00:14:05.480 --> 00:14:07.000 - Right. 00:14:07.000 --> 00:14:09.160 - Are there any particular challenges 00:14:09.160 --> 00:14:11.400 to building this type of system? 00:14:11.400 --> 00:14:13.400 Pushing a line that was going one way, 00:14:13.400 --> 00:14:14.960 pushing it back the other way. 00:14:14.960 --> 00:14:15.800 - No. 00:14:15.800 --> 00:14:16.620 - Business as usual. 00:14:16.620 --> 00:14:20.480 - Yeah, it's a pipe and a force main, 00:14:20.480 --> 00:14:23.480 so it's not a problem going one direction or the other. 00:14:23.480 --> 00:14:25.040 In this particular situation. 00:14:25.040 --> 00:14:26.920 - Okay, and they built to a standard 00:14:26.920 --> 00:14:29.200 similar to the way we build and-- 00:14:29.200 --> 00:14:32.400 - We're actually going to be constructing it ourselves. 00:14:32.400 --> 00:14:34.440 - Well, what about the existing stuff? 00:14:34.440 --> 00:14:35.560 It'll tie in with-- 00:14:35.560 --> 00:14:38.000 - Yes, I mean, it was built to the specifications 00:14:38.000 --> 00:14:40.640 that we required, so it's, yeah, it's fine. 00:14:40.640 --> 00:14:41.600 - All right, thanks. 00:14:41.600 --> 00:14:42.440 - Sure. 00:14:42.440 --> 00:14:44.720 - Other questions? 00:14:44.720 --> 00:14:47.200 - We have a couple of questions, Dr. Banks. 00:14:47.200 --> 00:14:50.600 What's the current wastewater impact fee? 00:14:50.600 --> 00:14:52.320 It may have been in here, but I didn't catch it. 00:14:52.320 --> 00:14:55.560 - It is, we just got it adopted. 00:14:55.560 --> 00:14:56.880 I have it written down in my notebook. 00:14:56.880 --> 00:14:57.840 I should have brought it up here. 00:14:57.840 --> 00:15:00.720 I think it's $4,712 for wastewater. 00:15:00.720 --> 00:15:01.560 - For wastewater. 00:15:01.560 --> 00:15:02.380 - That's correct. 00:15:02.380 --> 00:15:07.200 - Okay, so next question. 00:15:07.200 --> 00:15:10.760 It's going across the properties of the coal 00:15:10.760 --> 00:15:12.720 and Hillwood development areas. 00:15:12.720 --> 00:15:13.560 - Right. 00:15:13.560 --> 00:15:16.440 - Is this line being upsized in anticipation of that? 00:15:16.440 --> 00:15:18.380 - It is on the gravity portion, 00:15:18.380 --> 00:15:20.280 because that's the part that they're going to be using 00:15:20.280 --> 00:15:23.960 for the 800 SFE's. 00:15:23.960 --> 00:15:26.760 But the intention is once that, 00:15:26.760 --> 00:15:29.460 once the new line is being put in, 00:15:29.460 --> 00:15:32.760 which will also go through the Hunter and Coal branch areas 00:15:32.760 --> 00:15:36.960 to hook up with the work branch system, 00:15:36.960 --> 00:15:40.280 the intention is for the force main portion of that 00:15:40.280 --> 00:15:41.560 to be abandoned. 00:15:41.560 --> 00:15:44.900 And so the answer to your question is part of it is, 00:15:44.900 --> 00:15:49.120 the part that's anticipated to remain is being sized 00:15:49.120 --> 00:15:52.120 to accommodate that additional 800 SFE's. 00:15:52.120 --> 00:15:56.040 But the part that is not needed for that 00:15:56.040 --> 00:15:59.400 on the force main side is being sized 00:15:59.400 --> 00:16:02.300 to accommodate the full build out of Robeson. 00:16:02.300 --> 00:16:03.600 - Could you move closer to your mic, please? 00:16:03.600 --> 00:16:04.560 - Yes, excuse me. 00:16:04.560 --> 00:16:10.800 So it sounds like Hillwood and coal and that whole group 00:16:10.800 --> 00:16:13.320 have been cooperative by donating, 00:16:13.320 --> 00:16:15.120 basically donating the property for 20 bucks. 00:16:15.120 --> 00:16:16.120 - Right. - Correct? 00:16:16.120 --> 00:16:17.240 - That's correct. 00:16:17.240 --> 00:16:21.640 Are they cooperating with the design of the capacity 00:16:21.640 --> 00:16:22.600 that they may need? 00:16:22.600 --> 00:16:23.840 Is that gonna be on that, 00:16:23.840 --> 00:16:25.880 will that work on that side of the property 00:16:25.880 --> 00:16:28.760 or are they gonna have to put more on the other side? 00:16:28.760 --> 00:16:32.560 - Well, the short answer is to fully build out that property. 00:16:32.560 --> 00:16:35.260 They're going to need to have the work branch in place. 00:16:35.260 --> 00:16:40.440 But for that portion of the property 00:16:40.440 --> 00:16:42.000 that's there near Robeson, 00:16:42.000 --> 00:16:46.320 that 800 SFE's will allow them to build a significant amount 00:16:46.320 --> 00:16:47.640 in that property. 00:16:47.640 --> 00:16:50.040 And so it's going to be a little bit of both. 00:16:50.040 --> 00:16:52.040 There's going to be portions that are going to be going 00:16:52.040 --> 00:16:54.560 to the gravity section that will remain along Robeson Road 00:16:54.560 --> 00:16:56.520 and there'll be portions that will be serviced 00:16:56.520 --> 00:16:58.480 by the work branch at some point in the future. 00:16:58.480 --> 00:16:59.600 - Okay, all right. 00:16:59.600 --> 00:17:05.200 So the $4 million, is that a flat fee 00:17:05.200 --> 00:17:09.160 or are they deciding, are we going to even out with them 00:17:09.160 --> 00:17:10.760 once the construction is complete? 00:17:10.760 --> 00:17:15.320 - It's a flat fee but it's paid in a couple of installments. 00:17:15.320 --> 00:17:17.020 They're going to pay for the design first 00:17:17.020 --> 00:17:19.520 and then they're going to pay for the actual construction. 00:17:19.520 --> 00:17:23.920 - But you know, construction's not perfect obviously 00:17:23.920 --> 00:17:26.360 and a lot of things aren't planned for 00:17:26.360 --> 00:17:28.800 and they don't usually come under their budget. 00:17:28.800 --> 00:17:30.000 - Right. - Is what I'm getting at. 00:17:30.000 --> 00:17:35.000 - Right, I think we've made our best case estimate on this 00:17:35.000 --> 00:17:38.440 but at the same time, you gotta keep in mind 00:17:38.440 --> 00:17:40.040 that we're putting this in place 00:17:40.040 --> 00:17:41.400 with city construction crews. 00:17:41.400 --> 00:17:44.800 So we know what the price is because our own folks 00:17:44.800 --> 00:17:46.400 are going to be the ones that are putting it in. 00:17:46.400 --> 00:17:48.800 So materials costs are going to be the only thing 00:17:48.800 --> 00:17:49.720 that's gonna be different. 00:17:49.720 --> 00:17:51.240 - Well there is talk around the city 00:17:51.240 --> 00:17:53.920 to cut back on what's performed in house 00:17:53.920 --> 00:17:57.720 and so that's one of the reasons why I'm curious 00:17:57.720 --> 00:17:59.360 about that question. - Right. 00:17:59.360 --> 00:18:02.600 - There's been a lot of talk about-- 00:18:02.600 --> 00:18:03.760 - Sure. 00:18:03.760 --> 00:18:07.980 - Downsizing the existing interior construction folks so. 00:18:07.980 --> 00:18:13.280 - Well, we feel very confident that we'll be able 00:18:13.280 --> 00:18:17.520 to get this thing in for the at or below the price 00:18:17.520 --> 00:18:19.080 that we have established. 00:18:19.080 --> 00:18:21.160 - So if it's below, they still pay four million. 00:18:21.160 --> 00:18:24.540 - That's my understanding is that I'll look over at yes. 00:18:24.540 --> 00:18:32.720 If the amount is less than what they have paid for, 00:18:32.720 --> 00:18:35.280 do we reimburse or is it a flat fee? 00:18:35.280 --> 00:18:37.320 - It's a flat fee. - That's what I thought. 00:18:37.320 --> 00:18:39.520 So he's confirmed it's a flat fee. 00:18:39.520 --> 00:18:40.760 - It goes over, we eat some. 00:18:40.760 --> 00:18:42.560 If it comes under, we do better. 00:18:42.560 --> 00:18:43.400 - Okay. 00:18:43.400 --> 00:18:47.020 Let's go ahead, thank you. 00:18:47.020 --> 00:18:50.120 - I will point out that there are two consent agenda items 00:18:50.120 --> 00:18:51.800 for your consideration. 00:18:51.800 --> 00:18:56.160 One of them for the Robson portion of this agreement 00:18:56.160 --> 00:18:58.720 and one of them for the Hillwood Petrus 00:18:58.720 --> 00:19:00.240 portion of this agreement. 00:19:00.240 --> 00:19:02.720 So those will have to be approved 00:19:02.720 --> 00:19:05.320 and both will have to be approved 00:19:05.320 --> 00:19:07.900 in order to make this deal work. 00:19:07.900 --> 00:19:09.680 Staff's recommendation is for approval 00:19:09.680 --> 00:19:11.160 on both of those ordinances. 00:19:13.160 --> 00:19:15.600 - And thank you for mentioning the consent calendar 00:19:15.600 --> 00:19:18.520 or agenda because we're gonna move the agenda 00:19:18.520 --> 00:19:21.160 around a little bit after the work session. 00:19:21.160 --> 00:19:23.640 We're gonna go into the consent agenda 00:19:23.640 --> 00:19:25.120 and then we'll go into closed session 00:19:25.120 --> 00:19:28.280 just to speed things along a little bit. 00:19:28.280 --> 00:19:29.280 - Thank you. 00:19:29.280 --> 00:19:31.720 - All right, the next item is hold a report 00:19:31.720 --> 00:19:33.960 and a discussion and give staff direction 00:19:33.960 --> 00:19:36.460 regarding the credit and collection policy. 00:19:41.560 --> 00:19:42.760 - Good evening, Tiffany Thompson, 00:19:42.760 --> 00:19:43.960 Director of Customer Service. 00:19:43.960 --> 00:19:45.400 I have a couple of guests in the audience 00:19:45.400 --> 00:19:46.600 I wanna introduce first. 00:19:46.600 --> 00:19:50.000 We do have a new customer service manager, Krista Foster. 00:19:50.000 --> 00:19:51.700 She joined us just a couple months ago 00:19:51.700 --> 00:19:54.440 so you're gonna be seeing and hearing from her 00:19:54.440 --> 00:19:56.720 in the future and also we have some guests 00:19:56.720 --> 00:19:58.420 from Navigant Consulting. 00:19:58.420 --> 00:20:00.200 Navigant is the consulting firm 00:20:00.200 --> 00:20:03.840 that we secured back in 2008 to look over our operation 00:20:03.840 --> 00:20:05.160 and then give us recommendations 00:20:05.160 --> 00:20:06.760 on our credit and collection policy 00:20:06.760 --> 00:20:10.340 that we ultimately ended up adopting in 2010. 00:20:10.340 --> 00:20:12.600 So they're here tonight to go over our progress 00:20:12.600 --> 00:20:15.620 over those years and then also how we measure up 00:20:15.620 --> 00:20:19.480 to private and public utilities currently right now 00:20:19.480 --> 00:20:20.480 with our processes. 00:20:20.480 --> 00:20:22.840 So Christine with Navigant is gonna come up again 00:20:22.840 --> 00:20:25.340 for her presentation and then I'll come up afterwards 00:20:25.340 --> 00:20:27.000 and discuss the impact and the changes 00:20:27.000 --> 00:20:28.460 that we made about a year ago. 00:20:28.460 --> 00:20:30.160 Christine, you can go ahead and come up. 00:20:30.160 --> 00:20:39.960 - Good evening, I'm happy to be here today 00:20:39.960 --> 00:20:43.200 to share the results of the study we did. 00:20:43.200 --> 00:20:47.280 As Tiffany mentioned, we were here back in 2008. 00:20:47.280 --> 00:20:52.040 Did a more, a broader study of customer service in general. 00:20:52.040 --> 00:20:55.540 The study we did this year starting in January 00:20:55.540 --> 00:20:58.560 and completing in March focused on the credit 00:20:58.560 --> 00:20:59.700 and collections group. 00:20:59.700 --> 00:21:01.080 So I'll take you through that. 00:21:01.080 --> 00:21:03.400 It'll take about 20 minutes hopefully 00:21:03.400 --> 00:21:05.560 and then I'll be happy to answer any questions 00:21:05.560 --> 00:21:06.560 that you might have. 00:21:09.860 --> 00:21:13.000 Just a little bit of background on the study. 00:21:13.000 --> 00:21:17.400 Again, it was focused just looking at credit 00:21:17.400 --> 00:21:20.280 and collections practices with a goal 00:21:20.280 --> 00:21:23.520 of evaluating the performance and to understand 00:21:23.520 --> 00:21:26.840 if there's any opportunities for improvement. 00:21:26.840 --> 00:21:31.080 We made a number of recommendations back in 2008. 00:21:31.080 --> 00:21:33.640 So we wanted to make sure that those recommendations 00:21:33.640 --> 00:21:36.520 had been implemented and really kind of understand 00:21:36.520 --> 00:21:39.080 what the impact had been following that. 00:21:40.080 --> 00:21:43.400 You can see the steps of our study, they're listed here. 00:21:43.400 --> 00:21:47.000 And we will go into more detail about the benchmarking 00:21:47.000 --> 00:21:51.140 that we conducted to compare Denton against industry. 00:21:51.140 --> 00:21:57.960 Before we get into the details, just a little bit 00:21:57.960 --> 00:22:00.980 of reminder about some of the changes that happened 00:22:00.980 --> 00:22:03.740 within the credit and collections organization. 00:22:03.740 --> 00:22:07.840 When we were here back in 2008, again, 00:22:07.840 --> 00:22:09.720 we made a number of recommendations 00:22:09.720 --> 00:22:12.760 which resulted in some policy changes 00:22:12.760 --> 00:22:14.720 and changes to the way that collections 00:22:14.720 --> 00:22:17.120 is conducted in Denton. 00:22:17.120 --> 00:22:21.240 And I've listed those here in the upper table 00:22:21.240 --> 00:22:23.080 just to kind of remind everyone 00:22:23.080 --> 00:22:25.440 and put context to the discussion. 00:22:25.440 --> 00:22:27.800 It was a pretty significant change. 00:22:27.800 --> 00:22:29.600 We basically took the organization 00:22:29.600 --> 00:22:33.560 from a one size fits all collection approach 00:22:33.560 --> 00:22:37.240 to a more targeted risk-based collection 00:22:37.240 --> 00:22:40.160 which means that we wanted the organization 00:22:40.160 --> 00:22:44.280 to focus on those accounts that needed to be focused on 00:22:44.280 --> 00:22:46.840 based on the financial risk. 00:22:46.840 --> 00:22:50.640 So you can see the examples of some of the practices 00:22:50.640 --> 00:22:52.160 that were put in place. 00:22:52.160 --> 00:22:54.760 Some of it involved changes to the technology. 00:22:54.760 --> 00:22:57.680 Some of it involved securing a service 00:22:57.680 --> 00:23:00.640 to conduct credit screening of customers 00:23:00.640 --> 00:23:02.320 when they apply for service. 00:23:03.340 --> 00:23:07.460 And then we put in some capability to determine 00:23:07.460 --> 00:23:10.180 if a deposit would be required or not 00:23:10.180 --> 00:23:13.420 and if you have good payment behavior, 00:23:13.420 --> 00:23:16.140 we would waive that deposit for new applicants. 00:23:16.140 --> 00:23:19.080 Some changes were put in place 00:23:19.080 --> 00:23:22.400 in January or February of 2018 00:23:22.400 --> 00:23:24.620 and those are listed in the bottom table. 00:23:24.620 --> 00:23:30.480 Basically, some changes to the deposit requirements 00:23:30.480 --> 00:23:35.240 which lessened the amount of deposits 00:23:35.240 --> 00:23:37.600 that were being secured from customers, 00:23:37.600 --> 00:23:39.280 especially the customers 00:23:39.280 --> 00:23:41.480 that were a little bit riskier financially. 00:23:41.480 --> 00:23:45.120 And there were also some changes made 00:23:45.120 --> 00:23:48.520 to the internal credit score point system 00:23:48.520 --> 00:23:52.920 which meant that more actions would occur on account 00:23:52.920 --> 00:23:55.920 before they moved into a riskier credit category. 00:23:55.920 --> 00:23:58.440 So just keep those in mind 00:23:58.440 --> 00:24:00.560 kinda as we go through the results. 00:24:00.560 --> 00:24:04.400 First, I'd like to talk about the benchmarks 00:24:04.400 --> 00:24:05.680 that we conducted. 00:24:05.680 --> 00:24:08.360 We view benchmarking as an important tool 00:24:08.360 --> 00:24:12.240 to really understand performance of an entity 00:24:12.240 --> 00:24:15.840 and to really target and figure out 00:24:15.840 --> 00:24:19.080 what areas can be improved going forward. 00:24:19.080 --> 00:24:23.400 In this case, we had two panels that we assembled 00:24:23.400 --> 00:24:25.600 to compare Denton's performance against. 00:24:28.440 --> 00:24:32.240 The first was a panel of 15 municipal utilities 00:24:32.240 --> 00:24:34.880 and they're listed in the upper table. 00:24:34.880 --> 00:24:37.200 So you can see who is in that panel. 00:24:37.200 --> 00:24:38.760 And then we had a separate panel 00:24:38.760 --> 00:24:42.460 of about 59 other US utilities. 00:24:42.460 --> 00:24:48.140 They're composed of cooperatives, investor-owned utilities 00:24:48.140 --> 00:24:50.360 and municipal utilities. 00:24:50.360 --> 00:24:53.740 We have a list of those further on in the report. 00:24:53.740 --> 00:24:57.200 But we felt it was important to have two panels, 00:24:57.200 --> 00:25:02.200 collections tends to be a very state-specific activity. 00:25:02.200 --> 00:25:05.400 Lots of regulations, they vary across the nation, 00:25:05.400 --> 00:25:07.780 east to west, north to south. 00:25:07.780 --> 00:25:09.780 So we wanted to look at Texas in general 00:25:09.780 --> 00:25:14.240 to understand how Denton compares to peers, local peers, 00:25:14.240 --> 00:25:17.280 and then also look more broadly across the US 00:25:17.280 --> 00:25:21.480 for opportunities to improve and really understand outcomes 00:25:21.480 --> 00:25:23.360 and how Denton compares. 00:25:27.320 --> 00:25:29.680 So this table might be kind of hard to read, 00:25:29.680 --> 00:25:34.680 but it's basically the results of our Texas panel. 00:25:34.680 --> 00:25:39.040 And we asked some specific questions of the utilities 00:25:39.040 --> 00:25:40.720 to understand, first of all, 00:25:40.720 --> 00:25:43.720 what did they look like, how many customers, 00:25:43.720 --> 00:25:48.720 whether or not they have AMI smart meters in place, 00:25:48.720 --> 00:25:54.280 if they require a deposit of residential customers, 00:25:54.280 --> 00:25:57.840 and then how did they waive deposits 00:25:57.840 --> 00:25:59.760 if they do waive them or not. 00:25:59.760 --> 00:26:01.120 What did we find? 00:26:01.120 --> 00:26:03.640 Well, Denton's pretty comparable. 00:26:03.640 --> 00:26:08.280 And I was surprised at the high level of smart metering 00:26:08.280 --> 00:26:12.560 that's in place with any municipal utilities in Texas. 00:26:12.560 --> 00:26:16.760 That's obviously a very key benefit for a lot of things, 00:26:16.760 --> 00:26:18.680 but especially for collections 00:26:18.680 --> 00:26:20.640 in terms of reducing field trips 00:26:20.640 --> 00:26:23.440 and really getting billing data quicker. 00:26:24.360 --> 00:26:28.120 We found everyone has a deposit for residential customers. 00:26:28.120 --> 00:26:32.880 A large portion of them, most of the cities 00:26:32.880 --> 00:26:35.960 do waive the deposit if you have a letter of credit 00:26:35.960 --> 00:26:39.000 from another utility, as Denton does. 00:26:39.000 --> 00:26:44.520 A smaller portion of those utilities use credit scoring, 00:26:44.520 --> 00:26:48.000 like Denton does, to waive the deposit. 00:26:48.000 --> 00:26:50.040 And even the same size portion 00:26:50.040 --> 00:26:52.360 doesn't waive the deposit at all. 00:26:54.480 --> 00:26:58.640 So I think in general, pretty comparable to this panel. 00:26:58.640 --> 00:27:03.640 We've got some additional comparisons 00:27:03.640 --> 00:27:06.480 for the Texas panel where we looked at the timing 00:27:06.480 --> 00:27:08.360 of the collection cycle, 00:27:08.360 --> 00:27:11.560 how many days until a certain action occurs, 00:27:11.560 --> 00:27:15.800 and the fees that are put on a customer 00:27:15.800 --> 00:27:19.720 once they reach a specific credit action. 00:27:19.720 --> 00:27:24.160 And again, we found that Denton compares very favorably 00:27:24.160 --> 00:27:26.440 to this group, this panel, Texas panel. 00:27:26.440 --> 00:27:31.240 The fees are very comparable. 00:27:31.240 --> 00:27:36.040 I'll call your attention to the ReConnect fee. 00:27:36.040 --> 00:27:40.560 Denton's fee is significantly lower than the panel average. 00:27:40.560 --> 00:27:42.600 And just to orient you, Denton is in blue. 00:27:42.600 --> 00:27:46.760 Here's the average of AMI utilities, 00:27:46.760 --> 00:27:49.960 and then everybody else as one group average. 00:27:52.240 --> 00:27:57.240 Other things to note here that just about all the utilities 00:27:57.240 --> 00:28:01.920 charge a specific fee for same-day service 00:28:01.920 --> 00:28:04.160 or same-day ReConnects, as Denton does. 00:28:04.160 --> 00:28:09.440 And the late fee, most of the, 00:28:09.440 --> 00:28:11.640 just about all the utilities in this panel 00:28:11.640 --> 00:28:16.440 charge a fixed percentage, either five or 10%, 00:28:16.440 --> 00:28:21.120 whereas Denton charges a fixed flat fee of $20. 00:28:21.120 --> 00:28:24.400 Both approaches are common across the industry, 00:28:24.400 --> 00:28:26.200 and both work. 00:28:26.200 --> 00:28:30.120 I mean, the goal of a late fee is to get a timely payment 00:28:30.120 --> 00:28:32.120 from customers, so you want it to be something 00:28:32.120 --> 00:28:33.960 that gets their attention. 00:28:33.960 --> 00:28:36.840 - What are the blanks? 00:28:36.840 --> 00:28:38.800 Are they just numbers you couldn't acquire? 00:28:38.800 --> 00:28:42.600 - Couldn't get that data from a couple of them, yeah. 00:28:42.600 --> 00:28:45.120 Not as responsive, unfortunately. 00:28:45.120 --> 00:28:46.400 - Garland wasn't responsive? 00:28:46.400 --> 00:28:47.240 - No. 00:28:52.120 --> 00:28:55.120 - We also, as I mentioned, conducted some benchmarking 00:28:55.120 --> 00:28:59.080 with a bigger group of utilities from across the US, 00:28:59.080 --> 00:29:00.600 and this was a little bit different. 00:29:00.600 --> 00:29:02.640 We wanted to focus on outcomes 00:29:02.640 --> 00:29:07.640 and more typical benchmark metrics of performance, 00:29:07.640 --> 00:29:11.200 both effectiveness and efficiency measures. 00:29:11.200 --> 00:29:14.600 So we had to ask for a good bit of data from them, 00:29:14.600 --> 00:29:18.240 which involved getting an idea of the type of activities 00:29:18.240 --> 00:29:21.720 that they conduct during their collections practices, 00:29:21.720 --> 00:29:25.520 as well as the cost associated to conduct those. 00:29:25.520 --> 00:29:28.840 And when we talk about collection actions here, 00:29:28.840 --> 00:29:33.560 we're talking about active and inactive accounts, 00:29:33.560 --> 00:29:36.920 and it's basically the inside collections, folks. 00:29:36.920 --> 00:29:38.020 It's not the field. 00:29:38.020 --> 00:29:41.320 And by keeping it pretty specific, 00:29:41.320 --> 00:29:45.080 we're able to gather the right information from everybody 00:29:45.080 --> 00:29:47.360 and compare them as a panel. 00:29:48.840 --> 00:29:50.680 So we'll go into some of the metrics here 00:29:50.680 --> 00:29:53.120 and kind of give you an idea of what we looked at. 00:29:53.120 --> 00:30:00.520 For your reference, we've included a table here 00:30:00.520 --> 00:30:02.520 that shows the four primary metrics 00:30:02.520 --> 00:30:07.200 that we're gonna show you charts on in the next four pages. 00:30:07.200 --> 00:30:09.760 And there's a definition included as well 00:30:09.760 --> 00:30:11.360 for later reference. 00:30:11.360 --> 00:30:13.680 But basically, there's two measures 00:30:13.680 --> 00:30:16.600 that look at effectiveness and then two measures 00:30:16.600 --> 00:30:20.300 that look at efficiency, productivity, and unit cost. 00:30:20.300 --> 00:30:27.480 So the first metric, if I had to pick one metric 00:30:27.480 --> 00:30:30.800 for collections, this would be the metric I would look at. 00:30:30.800 --> 00:30:32.440 It's an outcome metric. 00:30:32.440 --> 00:30:35.840 It's the percent of net write-offs, 00:30:35.840 --> 00:30:38.440 which basically tells you how much money 00:30:38.440 --> 00:30:42.440 you could not collect as a percentage of your revenue. 00:30:42.440 --> 00:30:45.600 So again, what we've done here is, 00:30:45.600 --> 00:30:47.360 because we did have the opportunity 00:30:47.360 --> 00:30:50.960 to review performance back in 2008, 00:30:50.960 --> 00:30:55.800 we've included the performance as we saw it in 2008 00:30:55.800 --> 00:30:58.760 against what we found in 2018. 00:30:58.760 --> 00:31:01.800 And as you can see from the chart, 00:31:01.800 --> 00:31:05.080 Denton is in the darker bar there. 00:31:05.080 --> 00:31:09.300 And the performance was almost above 00:31:09.300 --> 00:31:13.480 all the panel segments in 2008. 00:31:13.480 --> 00:31:15.840 But since then, in the 10 years, 00:31:15.840 --> 00:31:20.480 Denton has significantly reduced the percentage of bad debt, 00:31:20.480 --> 00:31:22.480 as you can see in the chart on the right. 00:31:22.480 --> 00:31:30.780 The next metric is called end row. 00:31:30.780 --> 00:31:33.400 It's the equivalent number of days 00:31:33.400 --> 00:31:35.820 that revenue is outstanding. 00:31:35.820 --> 00:31:38.960 Basically tells you how quickly you get your money. 00:31:38.960 --> 00:31:42.200 It's a pretty popular metric in all industries. 00:31:42.200 --> 00:31:45.080 The quicker you get it is the goal. 00:31:45.080 --> 00:31:48.720 When we measured this back in 2008, 00:31:48.720 --> 00:31:50.640 Denton was on the high side of our panel 00:31:50.640 --> 00:31:53.400 of all the segments we looked at. 00:31:53.400 --> 00:31:56.000 When we look at it again in 2018, 00:31:56.000 --> 00:31:59.920 Denton is leading the pack with a significant improvement, 00:31:59.920 --> 00:32:03.440 basically taking about eight days off of that cycle. 00:32:03.440 --> 00:32:06.480 And we feel like that, 00:32:06.480 --> 00:32:10.220 end row has been positively impacted, 00:32:10.220 --> 00:32:13.720 obviously by shortening the collection timeline 00:32:13.720 --> 00:32:15.560 and the late fee. 00:32:15.560 --> 00:32:19.440 It does change people's payment behavior 00:32:19.440 --> 00:32:21.520 and you will get your money quicker 00:32:21.520 --> 00:32:24.080 with a significant late fee. 00:32:24.080 --> 00:32:30.660 The next two charts look at efficiency. 00:32:30.660 --> 00:32:33.360 The first one is a cost per unit cost, 00:32:33.360 --> 00:32:35.420 cost per collection action. 00:32:35.420 --> 00:32:37.880 So what we did was we collected the cost 00:32:37.880 --> 00:32:42.000 of the group that is performing the collection actions. 00:32:42.000 --> 00:32:44.200 And that includes labor cost, 00:32:44.200 --> 00:32:49.040 includes overtime, any outside contractors or agencies, 00:32:49.040 --> 00:32:51.640 and then anything else that is non-labor. 00:32:51.640 --> 00:32:54.640 And we asked this of all the utilities. 00:32:54.640 --> 00:32:59.080 We also had them tell us how many actions they conducted. 00:32:59.080 --> 00:33:01.320 And this is an annual figure. 00:33:01.320 --> 00:33:06.060 So the difference there of cost per action, 00:33:06.060 --> 00:33:07.240 you can see on the charts. 00:33:07.240 --> 00:33:10.720 And when we looked at it in 2008, 00:33:10.720 --> 00:33:14.840 Denton had a pretty good cost per action. 00:33:14.840 --> 00:33:19.840 And again, has a pretty good cost per action in 2018, 00:33:19.840 --> 00:33:23.360 which tells me that they're pretty effective 00:33:23.360 --> 00:33:26.480 at conducting these collection actions. 00:33:26.480 --> 00:33:32.760 The next is a typical productivity metric, 00:33:32.760 --> 00:33:35.120 which is how many actions per person 00:33:36.280 --> 00:33:38.520 is being completed by the group. 00:33:38.520 --> 00:33:42.120 Again, the productivity was good in 2008, 00:33:42.120 --> 00:33:45.000 much better in 2018. 00:33:45.000 --> 00:33:48.800 And keep in mind that a lot of these actions are automated. 00:33:48.800 --> 00:33:52.400 There are phone calls that are sent from the IVR system, 00:33:52.400 --> 00:33:56.160 and there's letters that are automatically spit out 00:33:56.160 --> 00:33:58.240 of the customer information system. 00:33:58.240 --> 00:34:01.160 But either way, they've been very effective 00:34:01.160 --> 00:34:04.620 and efficient at producing these collection actions. 00:34:07.120 --> 00:34:09.680 Here's the list I referred to earlier. 00:34:09.680 --> 00:34:11.760 I guess just in summary, 00:34:11.760 --> 00:34:15.560 the benchmark metrics show good performance improvement 00:34:15.560 --> 00:34:20.240 from 2008 to 2018, both from our panel in Texas, 00:34:20.240 --> 00:34:23.400 as well as our utilities nationwide. 00:34:23.400 --> 00:34:30.120 Okay, so let's kind of sum up what did we find. 00:34:30.120 --> 00:34:32.780 Obviously, the benchmark metrics show good performance, 00:34:32.780 --> 00:34:35.960 but we did look at other things within the department. 00:34:35.960 --> 00:34:37.640 And I'll go through those now. 00:34:37.640 --> 00:34:41.480 Just to kind of show you where they were 00:34:41.480 --> 00:34:44.360 and where they are now, I've prepared this slide, 00:34:44.360 --> 00:34:49.240 which shows what we found on the 2008 column. 00:34:49.240 --> 00:34:53.280 Again, sort of a one-size-fits-all. 00:34:53.280 --> 00:34:56.840 They weren't writing off bad debt off the books. 00:34:56.840 --> 00:35:01.840 They weren't very good or consistent at returning deposits. 00:35:02.360 --> 00:35:06.900 And they were sending accounts to collection 00:35:06.900 --> 00:35:09.840 at 120 days or more. 00:35:09.840 --> 00:35:14.040 And there was a large bad debt allowance each year, 00:35:14.040 --> 00:35:16.040 getting bigger every year. 00:35:16.040 --> 00:35:19.920 In 2018, now they're routinely writing off bad debt. 00:35:19.920 --> 00:35:22.560 Obviously, the bad debt has come down significantly 00:35:22.560 --> 00:35:25.440 since then, and they've put in place 00:35:25.440 --> 00:35:29.120 this risk-based collection treatment 00:35:29.120 --> 00:35:32.080 to really focus the attention on the accounts 00:35:32.080 --> 00:35:33.240 that need attention. 00:35:33.240 --> 00:35:40.960 These two charts, I think, are quite dramatic 00:35:40.960 --> 00:35:44.080 in terms of what's been accomplished by this group. 00:35:44.080 --> 00:35:49.840 The green columns show that the dollars of bad debt 00:35:49.840 --> 00:35:52.360 that have been written off in the last five years, 00:35:52.360 --> 00:35:55.200 you can see a significant improvement there, 00:35:55.200 --> 00:35:57.360 a decline in those dollars. 00:35:57.360 --> 00:36:02.080 The blue chart is the number of delinquent accounts, 00:36:02.080 --> 00:36:05.020 the number of accounts that are being worked. 00:36:05.020 --> 00:36:07.960 And that dropped significantly, I guess, 00:36:07.960 --> 00:36:12.640 in the 2010, 2011 timeframe with the late fee, 00:36:12.640 --> 00:36:14.060 the rise in the late fee. 00:36:14.060 --> 00:36:22.640 Otherwise, we think that the group has, 00:36:22.640 --> 00:36:25.360 and the customer service department in general, 00:36:25.360 --> 00:36:28.680 has made good use of the technology that's available. 00:36:28.680 --> 00:36:32.920 The AMI smart meters are key for collections. 00:36:32.920 --> 00:36:34.640 You're getting your data sooner. 00:36:34.640 --> 00:36:37.080 You're able to act on it remotely. 00:36:37.080 --> 00:36:40.320 A lot of opportunity and potential there. 00:36:40.320 --> 00:36:42.840 They've also introduced a pay-as-you-go program, 00:36:42.840 --> 00:36:47.240 which uses an app and website to manage that. 00:36:47.240 --> 00:36:49.880 We think that's a great addition. 00:36:49.880 --> 00:36:51.920 And then, of course, the Engage Denton app, 00:36:51.920 --> 00:36:54.720 which is more broadly available for the city, 00:36:54.720 --> 00:36:57.200 but does get customers pointed to the right direction 00:36:57.200 --> 00:37:00.160 if they want to make a payment or look into their account. 00:37:00.160 --> 00:37:04.600 We think that the reps are having better conversations 00:37:04.600 --> 00:37:06.040 with customers. 00:37:06.040 --> 00:37:09.120 It's now clear what the requirements are. 00:37:09.120 --> 00:37:12.480 They're listed explicitly on the website. 00:37:12.480 --> 00:37:14.680 We think customers understand them, 00:37:14.680 --> 00:37:18.600 and as such, are having better conversations. 00:37:18.600 --> 00:37:20.800 The customer service organization has also done 00:37:20.800 --> 00:37:23.840 a good job at training and making sure that reps 00:37:23.840 --> 00:37:26.400 are prepared to have those conversations. 00:37:26.400 --> 00:37:28.880 And, of course, more funding has been made available 00:37:28.880 --> 00:37:31.960 for assistance, which helps customers 00:37:31.960 --> 00:37:33.240 who are really struggling. 00:37:33.240 --> 00:37:36.400 And, of course, as I mentioned earlier, 00:37:36.400 --> 00:37:38.680 we're getting the money eight days quicker, 00:37:38.680 --> 00:37:42.240 which makes the finance department happier, I'm sure. 00:37:42.240 --> 00:37:47.000 And the performance, again, is very favorable 00:37:47.000 --> 00:37:48.680 when we look at both panels. 00:37:50.920 --> 00:37:55.920 I have, however, we are noticing when we take a look 00:37:55.920 --> 00:38:01.760 at bad debt since 2018, we're noticing an increase now. 00:38:01.760 --> 00:38:06.320 And this is following the changes that were put in place 00:38:06.320 --> 00:38:10.120 in January, February timeframe to really lessen 00:38:10.120 --> 00:38:11.720 the deposit requirements. 00:38:11.720 --> 00:38:15.600 We don't have a full year's worth of data yet. 00:38:15.600 --> 00:38:17.280 We had about six months. 00:38:17.280 --> 00:38:21.480 So we projected what we think the full year will look like, 00:38:21.480 --> 00:38:26.480 and it's about a 14% increase in bad debt for this period. 00:38:26.480 --> 00:38:31.720 We're also seeing, obviously, if you take the number 00:38:31.720 --> 00:38:34.800 of delinquent accounts and you divide it by bad debt, 00:38:34.800 --> 00:38:38.800 we're seeing an increase in the average delinquency amount. 00:38:38.800 --> 00:38:43.360 So we find that concerning. 00:38:43.360 --> 00:38:46.720 We also, more broadly, just looking at the organization, 00:38:46.720 --> 00:38:49.040 think that there's some opportunity to automate 00:38:49.040 --> 00:38:51.600 some of the more manual tasks that are still remaining 00:38:51.600 --> 00:38:52.640 in the group. 00:38:52.640 --> 00:38:55.720 So that's sort of a to-do for management going forward. 00:38:55.720 --> 00:39:00.200 And then we also notice that customers do not have 00:39:00.200 --> 00:39:05.200 any self-service options to ask for a payment extension 00:39:05.200 --> 00:39:08.520 or a payment plan through the website 00:39:08.520 --> 00:39:10.600 or automated phone system. 00:39:10.600 --> 00:39:14.320 It's a popular option across the country 00:39:14.320 --> 00:39:15.360 with other utilities. 00:39:15.360 --> 00:39:19.120 And when you talk about financial concerns, 00:39:19.120 --> 00:39:22.800 a lot of people prefer to do it in a self-service manner. 00:39:22.800 --> 00:39:30.160 Okay, just to quickly sum up, 00:39:30.160 --> 00:39:32.120 we do have some recommendations 00:39:32.120 --> 00:39:34.060 after looking at the performance. 00:39:34.060 --> 00:39:36.880 Continue doing what they're doing. 00:39:36.880 --> 00:39:39.200 There's a lot of good best practices in place, 00:39:39.200 --> 00:39:43.160 and we still feel strongly that they are the right practices. 00:39:44.360 --> 00:39:47.160 We do have some options, opportunities for them 00:39:47.160 --> 00:39:50.200 to grow and improve. 00:39:50.200 --> 00:39:54.000 We talked about more self-service and automation. 00:39:54.000 --> 00:39:56.720 We think it's important because of these changes 00:39:56.720 --> 00:40:00.920 to the policy last year and the negative trending 00:40:00.920 --> 00:40:05.920 of bad debt that the department should follow more closely 00:40:05.920 --> 00:40:10.040 those accounts and be prepared to act quickly 00:40:10.040 --> 00:40:11.600 if they need to. 00:40:11.600 --> 00:40:13.760 And then I think just looking at what's going on 00:40:13.760 --> 00:40:17.680 in the industry, there are some options for the city 00:40:17.680 --> 00:40:20.680 and for the department to really focus 00:40:20.680 --> 00:40:23.440 on expanding outreach for customers 00:40:23.440 --> 00:40:26.300 who are having difficulty paying their bills 00:40:26.300 --> 00:40:28.760 and to really work with the reps 00:40:28.760 --> 00:40:32.600 so that they are better able to counsel 00:40:32.600 --> 00:40:34.600 and have that difficult discussion 00:40:34.600 --> 00:40:37.340 and point customers in the right direction. 00:40:37.340 --> 00:40:40.720 And then maybe the city in the future 00:40:40.720 --> 00:40:42.560 will think about some options, 00:40:42.560 --> 00:40:45.760 perhaps different rates or different discounts 00:40:45.760 --> 00:40:48.720 for customers who are really on the edge 00:40:48.720 --> 00:40:51.640 and having a difficult time paying their bill. 00:40:51.640 --> 00:40:56.180 Other cities have done this in Texas and elsewhere. 00:40:56.180 --> 00:41:04.240 And just one more time, again, we do find it troubling 00:41:04.240 --> 00:41:06.920 that the bad debt is going up. 00:41:06.920 --> 00:41:11.920 So we suggest that the collections team 00:41:12.480 --> 00:41:14.960 monitor these accounts more closely. 00:41:14.960 --> 00:41:16.920 They work on some segmentation 00:41:16.920 --> 00:41:20.640 so that they can better understand what's happening 00:41:20.640 --> 00:41:23.640 and look at the payment behavior of that group. 00:41:23.640 --> 00:41:26.600 And then perhaps use triggers 00:41:26.600 --> 00:41:31.600 to consider assessing the deposits based on a change 00:41:31.600 --> 00:41:35.040 rather than waiting quarterly to do it. 00:41:35.040 --> 00:41:38.520 And then if customers, for instance, 00:41:38.520 --> 00:41:40.520 leave the auto pay program, 00:41:40.520 --> 00:41:44.120 look at assessing the deposit at that point in time too, 00:41:44.120 --> 00:41:48.480 basically acting quicker and just keeping an eye on things. 00:41:48.480 --> 00:41:53.080 And at some point, I guess, after a year's worth of data, 00:41:53.080 --> 00:41:55.800 at least it'd be good to circle back 00:41:55.800 --> 00:41:58.760 and really consider are you happy with these changes 00:41:58.760 --> 00:42:01.880 and the direction that you're going or not 00:42:01.880 --> 00:42:04.280 and then consider if any changes to the policy 00:42:04.280 --> 00:42:06.160 would be appropriate. 00:42:06.160 --> 00:42:09.360 I think the Pay As You Go program is a good addition 00:42:09.360 --> 00:42:11.360 that will help with those customers 00:42:11.360 --> 00:42:14.120 who are challenged to make a deposit, 00:42:14.120 --> 00:42:16.180 have the money to put down, 00:42:16.180 --> 00:42:19.960 as well as those who have trouble avoiding the late fees. 00:42:19.960 --> 00:42:21.320 It makes it simple. 00:42:21.320 --> 00:42:24.740 They pay for what they need when they have it. 00:42:24.740 --> 00:42:30.680 That's all I have prepared. 00:42:30.680 --> 00:42:33.320 I'd be happy to answer any questions you might have. 00:42:33.320 --> 00:42:35.460 Questions? 00:42:38.280 --> 00:42:39.280 - I have a question. 00:42:39.280 --> 00:42:45.340 Can one account have multiple collection actions? 00:42:45.340 --> 00:42:47.160 - Yes. 00:42:47.160 --> 00:42:49.760 - Okay, so I guess by this definition, 00:42:49.760 --> 00:42:51.980 they could have many even. 00:42:51.980 --> 00:42:53.540 - Yeah, during one month, I mean, 00:42:53.540 --> 00:42:56.340 you could move from having a late fee 00:42:56.340 --> 00:42:58.200 on your added to your account 00:42:58.200 --> 00:43:00.400 because you're late on your payment 00:43:00.400 --> 00:43:01.980 and if you still don't make a payment, 00:43:01.980 --> 00:43:06.980 you would get a call to tell you that you missed your payment 00:43:06.980 --> 00:43:10.720 and then you get a call to say you're gonna be disconnected 00:43:10.720 --> 00:43:12.840 and then you might be disconnected, 00:43:12.840 --> 00:43:15.880 so that'd be three or four on that one month. 00:43:15.880 --> 00:43:20.120 And then you take it times 12, you know. 00:43:20.120 --> 00:43:27.000 - Where are we seeing the increase of 14%? 00:43:27.000 --> 00:43:28.600 Is that primary residential? 00:43:28.600 --> 00:43:31.640 - Yeah. 00:43:37.160 --> 00:43:40.040 (sighs) 00:43:40.040 --> 00:43:40.880 - Questions? 00:43:40.880 --> 00:43:45.200 Well, the trend is disappointing. 00:43:45.200 --> 00:43:46.040 (laughs) 00:43:46.040 --> 00:43:48.200 - Yeah, thank you very much. 00:43:48.200 --> 00:43:49.160 - Thank you. 00:43:49.160 --> 00:43:52.660 - Did we just enable the pay as you go thing? 00:43:52.660 --> 00:43:54.080 Not so long ago? 00:43:54.080 --> 00:43:55.920 - Yes, when did we enable pay as you go? 00:43:55.920 --> 00:43:57.060 - It went live February for the public watch. 00:43:57.060 --> 00:43:58.200 - Yeah, so we haven't really got it. 00:43:58.200 --> 00:44:01.200 - And I've got some updated numbers to share with you. 00:44:01.200 --> 00:44:02.600 I was waiting for that question. 00:44:02.600 --> 00:44:05.640 I know y'all are gonna have more questions than that for me. 00:44:06.560 --> 00:44:08.920 I told Christina, they're gonna give you 00:44:08.920 --> 00:44:13.040 all the hard questions and then I won't get any hard questions. 00:44:13.040 --> 00:44:15.200 So again, I'm gonna just go over the impacts 00:44:15.200 --> 00:44:17.840 of the changes that we made last year. 00:44:17.840 --> 00:44:19.120 Just a little bit of background. 00:44:19.120 --> 00:44:22.040 In 2010 is when we updated the ordinance 00:44:22.040 --> 00:44:24.120 with those credit and collection policies. 00:44:24.120 --> 00:44:26.940 That was in response to our high amount of bad debt 00:44:26.940 --> 00:44:29.400 and just opportunities to enhance 00:44:29.400 --> 00:44:31.860 the credit and collection policies. 00:44:31.860 --> 00:44:36.440 So really in fall of 2017, we started discussions 00:44:36.440 --> 00:44:39.040 with the Public Utilities Board and City Council 00:44:39.040 --> 00:44:41.960 over several months and then in February of 2018, 00:44:41.960 --> 00:44:43.840 we implemented some changes. 00:44:43.840 --> 00:44:45.240 And the changes that we made 00:44:45.240 --> 00:44:47.440 were in the plus one utility program. 00:44:47.440 --> 00:44:50.600 We increased funding by $25,000. 00:44:50.600 --> 00:44:54.260 We allowed customers to get assistance up to three times. 00:44:54.260 --> 00:44:56.080 Previously, they were only able to get assistance 00:44:56.080 --> 00:44:57.800 once in a 12 month period. 00:44:57.800 --> 00:45:00.160 And then also they were able to get assistance 00:45:00.160 --> 00:45:03.920 with their deposits, but that was not an option previously. 00:45:03.920 --> 00:45:07.240 And then we added additional deposit waivers for customers 00:45:07.240 --> 00:45:10.040 and so they could enroll in automatic payment draft 00:45:10.040 --> 00:45:11.360 and get the deposit waived. 00:45:11.360 --> 00:45:13.480 And then also with our new payment system, 00:45:13.480 --> 00:45:16.340 if you signed up for recurring credit or debit card 00:45:16.340 --> 00:45:18.160 or electronic checks or ACH, 00:45:18.160 --> 00:45:20.480 you can get your deposit waived as well. 00:45:20.480 --> 00:45:23.480 And then those customers that were experiencing homelessness 00:45:23.480 --> 00:45:25.960 or working through a rapid rehousing program 00:45:25.960 --> 00:45:27.640 could get deposit waivers as well 00:45:27.640 --> 00:45:29.640 through the homelessness deposit waiver. 00:45:29.640 --> 00:45:32.840 The additional changes that we did 00:45:32.840 --> 00:45:34.480 was the overdue interest 00:45:34.480 --> 00:45:36.640 was no longer a credit rated event. 00:45:36.640 --> 00:45:40.120 So there was no points associated with the overdue interest. 00:45:40.120 --> 00:45:43.960 That impacted about 1500 customers when we made that change. 00:45:43.960 --> 00:45:47.420 So 1500 customers either required less a deposit 00:45:47.420 --> 00:45:49.880 or no deposit with that change. 00:45:49.880 --> 00:45:53.120 And then additionally, we changed the customer ranking, 00:45:53.120 --> 00:45:56.400 points accrued and deposits assessed for our customers. 00:45:56.400 --> 00:45:58.960 So we eliminated that F credit rating 00:45:58.960 --> 00:46:03.000 and then moved everyone up and the C through E points expanded. 00:46:03.000 --> 00:46:05.200 And so if you were a D, 00:46:05.200 --> 00:46:07.200 now you only required a one month deposit 00:46:07.200 --> 00:46:09.000 versus previously it was a two month 00:46:09.000 --> 00:46:12.560 and then the E ratings was a two month deposit. 00:46:12.560 --> 00:46:16.420 So this impacts, we had 710 customers 00:46:16.420 --> 00:46:18.620 no longer needed a deposit increase 00:46:18.620 --> 00:46:19.960 once we made this change. 00:46:19.960 --> 00:46:23.840 And then 1882 customers moved from a two month 00:46:23.840 --> 00:46:25.180 to a one month deposit. 00:46:25.180 --> 00:46:27.840 So we had a pretty substantial deposit refund 00:46:27.840 --> 00:46:29.980 that I'm gonna talk to here pretty soon. 00:46:29.980 --> 00:46:32.700 So previously about 89% of our customer base 00:46:32.700 --> 00:46:34.680 didn't need a deposit. 00:46:34.680 --> 00:46:37.280 And currently 93% of our customers base 00:46:37.280 --> 00:46:39.560 doesn't need a deposit with the changes. 00:46:39.560 --> 00:46:43.220 So we were able to help eight families 00:46:43.220 --> 00:46:45.240 with the homelessness deposit waiver 00:46:45.240 --> 00:46:47.120 since we've implemented this. 00:46:47.120 --> 00:46:49.280 And then for our deposit waivers 00:46:49.280 --> 00:46:52.120 for the preauthorized or the reoccurring payment, 00:46:52.120 --> 00:46:53.860 what that did with that payment channel 00:46:53.860 --> 00:46:56.180 is increased adoption by 16%. 00:46:56.180 --> 00:46:59.040 So our customers really did take to that option 00:46:59.040 --> 00:47:01.760 of waiving the deposit, obviously with that. 00:47:01.760 --> 00:47:04.840 But what we ultimately found over the last several months 00:47:04.840 --> 00:47:07.780 is that when we were doing those quarterly deposit audits 00:47:07.780 --> 00:47:10.400 and assessments to see what the health is of the account, 00:47:10.400 --> 00:47:11.760 what do we need to charge, 00:47:11.760 --> 00:47:15.000 55% of them had not either signed up 00:47:15.000 --> 00:47:17.640 for the reoccurring payment option online 00:47:17.640 --> 00:47:19.160 or did not maintain it. 00:47:19.160 --> 00:47:21.660 And one of the challenges why that occurred 00:47:21.660 --> 00:47:23.680 is they do need to do that themselves 00:47:23.680 --> 00:47:26.440 because they're putting in their sensitive card information, 00:47:26.440 --> 00:47:27.580 checking account information, 00:47:27.580 --> 00:47:29.600 they're managing it themself online. 00:47:29.600 --> 00:47:31.240 We don't do that for them. 00:47:31.240 --> 00:47:34.680 So they can dynamically change it as needed with that. 00:47:34.680 --> 00:47:36.360 So that's definitely an opportunity 00:47:36.360 --> 00:47:38.240 that we're gonna discuss further on. 00:47:38.240 --> 00:47:41.080 - Let me just make sure I understand that. 00:47:41.080 --> 00:47:43.560 So they initially signed up, 00:47:43.560 --> 00:47:45.640 they didn't need to have a deposit, 00:47:45.640 --> 00:47:46.940 but they didn't renew it. 00:47:46.940 --> 00:47:50.700 So now they probably should have a deposit, 00:47:50.700 --> 00:47:51.600 but they don't. 00:47:51.600 --> 00:47:52.800 - Correct. - Okay. 00:47:52.800 --> 00:47:53.640 - Correct. 00:47:53.640 --> 00:47:55.960 - It was a circle. 00:47:55.960 --> 00:47:57.560 - Sure was. - Yeah. 00:47:57.560 --> 00:48:01.120 - So this is our deposits by class that's on file, 00:48:01.120 --> 00:48:04.400 broken out by multifamily, residential and commercial. 00:48:04.400 --> 00:48:06.560 And so you can see that our commercial deposits 00:48:06.560 --> 00:48:08.520 have increased what we have on file 00:48:08.520 --> 00:48:12.380 compared from March of 2018 to January, 2019. 00:48:12.380 --> 00:48:16.080 But overall 33% fewer accounts have deposits now 00:48:16.080 --> 00:48:21.080 and our reduction in our deposit balance has been $822,000. 00:48:21.360 --> 00:48:23.460 And so currently 13% of our accounts 00:48:23.460 --> 00:48:24.720 have deposits on them. 00:48:24.720 --> 00:48:28.380 Previously, we had about 20 to 21% of our customer base 00:48:28.380 --> 00:48:30.080 had deposits on there. 00:48:30.080 --> 00:48:33.960 So also our deposit refunds on active accounts 00:48:33.960 --> 00:48:37.160 increased by 12% based off of all those changes. 00:48:37.160 --> 00:48:39.600 So that's really what influenced that reduction 00:48:39.600 --> 00:48:43.720 in the deposits while we had so many deposit refunds 00:48:43.720 --> 00:48:44.700 with that this year. 00:48:44.700 --> 00:48:47.240 So I think this is an important story to tell 00:48:47.240 --> 00:48:48.860 what we have on file right now. 00:48:50.800 --> 00:48:53.600 So our unrecoverable debt, that is our debt 00:48:53.600 --> 00:48:58.000 that goes 180 days past the final billing date. 00:48:58.000 --> 00:49:00.480 That's when we deem it unrecoverable debt. 00:49:00.480 --> 00:49:02.720 And so one of the things I wanna point out 00:49:02.720 --> 00:49:05.320 is that we do not, and Christine pointed this out, 00:49:05.320 --> 00:49:07.200 we don't have a full year's worth of data 00:49:07.200 --> 00:49:09.200 'cause we have to wait until 180 days 00:49:09.200 --> 00:49:10.200 and then we write it off. 00:49:10.200 --> 00:49:13.360 So we still need to do September of last year 00:49:13.360 --> 00:49:14.480 currently right now. 00:49:14.480 --> 00:49:17.320 So that's a big sticking point with this presentation 00:49:17.320 --> 00:49:20.880 is we don't still have a whole year of impact with this. 00:49:20.880 --> 00:49:23.160 But what we are seeing right now 00:49:23.160 --> 00:49:27.640 is a projection of about $38,000 increase in total debt. 00:49:27.640 --> 00:49:30.560 So it's going from 381,000 last year 00:49:30.560 --> 00:49:35.560 to approximately 419,000 in our unrecoverable debt 00:49:35.560 --> 00:49:36.680 at this point. 00:49:36.680 --> 00:49:39.280 But again, we do not have a full year's worth of data. 00:49:39.280 --> 00:49:43.960 So with the Plus One Assistance Program, 00:49:43.960 --> 00:49:46.260 that is administered through our Interfaith Ministries 00:49:46.260 --> 00:49:47.360 contact that we have. 00:49:47.360 --> 00:49:49.220 And because there's a financial tie to this, 00:49:49.220 --> 00:49:51.760 we wanna make sure that we're getting a good experience 00:49:51.760 --> 00:49:53.320 with our customers with that contract. 00:49:53.320 --> 00:49:56.720 And we recently did a customer satisfaction, 00:49:56.720 --> 00:49:59.080 a survey component that had, 00:49:59.080 --> 00:50:01.500 we surveyed customers that got assistance, 00:50:01.500 --> 00:50:03.100 customers that were denied assistance. 00:50:03.100 --> 00:50:07.680 And also we did a secret shopper component as well with this. 00:50:07.680 --> 00:50:09.760 And what we found is 90% of the customers 00:50:09.760 --> 00:50:12.320 that sought out Interfaith for assistance 00:50:12.320 --> 00:50:13.760 were pleased and satisfied 00:50:13.760 --> 00:50:15.840 and would recommend to family or friends. 00:50:15.840 --> 00:50:17.200 But there were some opportunities 00:50:17.200 --> 00:50:18.580 that we need to address as well. 00:50:18.580 --> 00:50:20.720 We did have some customers that were not called back 00:50:20.720 --> 00:50:22.520 when we reached out to Interfaith. 00:50:22.520 --> 00:50:25.080 The secret shopper that went in person 00:50:25.080 --> 00:50:27.840 was not called back to get assistance. 00:50:27.840 --> 00:50:29.720 And then we had some conflicting information 00:50:29.720 --> 00:50:31.700 on the website and on the phone. 00:50:31.700 --> 00:50:34.280 So we sent a letter letting them know, 00:50:34.280 --> 00:50:37.440 we did this survey and these are our findings 00:50:37.440 --> 00:50:38.720 and we would like an action plan 00:50:38.720 --> 00:50:40.180 on how you plan to address those. 00:50:40.180 --> 00:50:41.680 And over the last week or so, 00:50:41.680 --> 00:50:43.800 we've been going back and forth with Interfaith 00:50:43.800 --> 00:50:44.940 on follow-up questions. 00:50:44.940 --> 00:50:47.400 So we can really get a good service level agreement 00:50:47.400 --> 00:50:48.340 and how we can make sure 00:50:48.340 --> 00:50:49.880 that our customers are getting what they need. 00:50:49.880 --> 00:50:51.600 'Cause a lot of times the customers 00:50:51.600 --> 00:50:54.480 that are seeking assistance need it quickly 00:50:54.480 --> 00:50:57.140 because they could potentially be disconnected 00:50:57.140 --> 00:50:59.480 for non-payment and are just experiencing something 00:50:59.480 --> 00:51:01.280 that's very challenging. 00:51:01.280 --> 00:51:03.200 So with that being said, 00:51:03.200 --> 00:51:06.560 81% of the customers that sought out an appointment 00:51:06.560 --> 00:51:08.560 were granted an appointment with that. 00:51:08.560 --> 00:51:10.000 And if they did not get an appointment, 00:51:10.000 --> 00:51:12.480 the reasons being is they either canceled the appointment, 00:51:12.480 --> 00:51:13.800 they didn't need it any longer, 00:51:13.800 --> 00:51:15.560 there wasn't a true crisis, 00:51:15.560 --> 00:51:17.120 or they want the account older 00:51:17.120 --> 00:51:19.880 or they weren't on the actual utility bill. 00:51:19.880 --> 00:51:22.640 But for the customers that did get an appointment, 00:51:22.640 --> 00:51:25.080 68% of them did receive assistance. 00:51:25.080 --> 00:51:27.920 And so the reasons why they get denied the assistance, 00:51:27.920 --> 00:51:31.520 74% of them didn't show up to the appointment, 00:51:31.520 --> 00:51:33.740 they either canceled the appointments 00:51:33.740 --> 00:51:36.400 or they didn't fill out the required documentation. 00:51:36.400 --> 00:51:39.100 The biggest change from when we updated the parameters 00:51:39.100 --> 00:51:40.120 from last year to this year, 00:51:40.120 --> 00:51:42.760 the number one reason why they were denied an appointment 00:51:42.760 --> 00:51:45.200 or assistance is 'cause they needed it more than once 00:51:45.200 --> 00:51:46.860 in that 12-month period. 00:51:46.860 --> 00:51:49.720 So with that change in the program, 00:51:49.720 --> 00:51:51.280 that's been completely eliminated 00:51:51.280 --> 00:51:53.680 as a reason why customers were being denied. 00:51:53.680 --> 00:51:57.660 So overall, the increased funding 00:51:57.660 --> 00:51:58.960 has made a positive impact. 00:51:58.960 --> 00:52:01.800 We've been able to assist 71 more customers for them, 00:52:01.800 --> 00:52:03.360 have got deposit assistance, 00:52:03.360 --> 00:52:06.760 and 35 families have been able to receive multi-month. 00:52:06.760 --> 00:52:09.760 And so those 35 families wouldn't have qualified previously 00:52:09.760 --> 00:52:11.400 under the old parameters. 00:52:11.400 --> 00:52:14.080 So we're assisting about seven more families a month. 00:52:14.080 --> 00:52:16.160 And right now, our fund forecast 00:52:16.160 --> 00:52:18.960 for this current fiscal year is we're right on track. 00:52:18.960 --> 00:52:20.880 However, our big months, 00:52:20.880 --> 00:52:22.980 June, July, August are coming up, 00:52:22.980 --> 00:52:25.680 and sometimes those can be a bit unpredictable, 00:52:25.680 --> 00:52:27.320 but those are always our highest 00:52:27.320 --> 00:52:29.040 when the customers have the most need. 00:52:29.040 --> 00:52:31.520 So if we're right where we need to be, 00:52:31.520 --> 00:52:32.820 we're saying we've got enough. 00:52:32.820 --> 00:52:35.520 However, if the board and council wanted 00:52:35.520 --> 00:52:37.440 to add additional funds this fiscal year, 00:52:37.440 --> 00:52:38.920 we do have some savings in our budget 00:52:38.920 --> 00:52:40.340 to be able to accommodate that. 00:52:40.340 --> 00:52:43.880 So we could do a five to $10,000 increase 00:52:43.880 --> 00:52:47.680 if that is something that the board has an appetite for. 00:52:47.680 --> 00:52:52.400 So Pay As You Go is a program 00:52:52.400 --> 00:52:55.720 that we did our public launch on February 7th. 00:52:55.720 --> 00:52:57.520 Prior to that, several months before that, 00:52:57.520 --> 00:53:00.600 we were giving customers the option 00:53:00.600 --> 00:53:02.160 when we were talking to them over the phone 00:53:02.160 --> 00:53:04.120 so we could really grow into the program 00:53:04.120 --> 00:53:06.920 and make sure we were ready to go for the public launch. 00:53:06.920 --> 00:53:10.000 I have an updated number as of about two hours ago. 00:53:10.000 --> 00:53:13.240 We're up to 104 customers on the prepaid program. 00:53:13.240 --> 00:53:15.120 So just since March 5th, 00:53:15.120 --> 00:53:17.320 we've increased it by 20-something customers. 00:53:17.320 --> 00:53:21.160 So we're able to take the deposits on customers' accounts 00:53:21.160 --> 00:53:24.160 and make that to payments on the account. 00:53:24.160 --> 00:53:26.440 We're reducing the debt that they've had 00:53:26.440 --> 00:53:28.340 on the accounts currently. 00:53:28.340 --> 00:53:31.760 The majority of the customers that are on the Pay As You Go 00:53:31.760 --> 00:53:34.700 have been customers who have switched from post to pre. 00:53:34.700 --> 00:53:36.280 So they were postpaid previously. 00:53:36.280 --> 00:53:37.640 Now they're going to the prepaid. 00:53:37.640 --> 00:53:40.320 So about 64% of the customers that are on it 00:53:40.320 --> 00:53:41.440 have switched over. 00:53:41.440 --> 00:53:43.840 And then the rest are 36% are new customers 00:53:43.840 --> 00:53:45.480 coming into the utility system 00:53:45.480 --> 00:53:48.320 that have opted to go for Pay As You Go with it. 00:53:48.320 --> 00:53:50.600 So we're pretty excited about that, 00:53:50.600 --> 00:53:53.240 the Pay As You Go option that eliminates deposits, 00:53:53.240 --> 00:53:55.200 late fees, bad debt. 00:53:55.200 --> 00:53:57.520 Just really excited about it. 00:53:57.520 --> 00:54:00.440 So our continued improvement. 00:54:00.440 --> 00:54:02.320 So through our collaboration with Navigant 00:54:02.320 --> 00:54:04.320 and our own internal analysis, 00:54:04.320 --> 00:54:06.500 we have found that we truly need to have 00:54:06.500 --> 00:54:09.200 further assessments of the impacts over time. 00:54:09.200 --> 00:54:11.120 Right now, again, we don't have that full year. 00:54:11.120 --> 00:54:12.760 And so we're wanting to make sure 00:54:12.760 --> 00:54:13.880 that we're addressing the things 00:54:13.880 --> 00:54:15.760 that we are seeing now specifically. 00:54:15.760 --> 00:54:17.400 As Christine brought up, 00:54:17.400 --> 00:54:18.560 those customers that have said, 00:54:18.560 --> 00:54:20.120 "Yes, I want to waive my deposit. 00:54:20.120 --> 00:54:22.440 "I'm going to sign up for reoccurring." 00:54:22.440 --> 00:54:25.000 We need to make sure, how do we verify that? 00:54:25.000 --> 00:54:26.960 And so the challenge with that 00:54:26.960 --> 00:54:29.680 is we're needing to create some reporting 00:54:29.680 --> 00:54:30.840 with our payment system 00:54:30.840 --> 00:54:32.760 and also our customer information system. 00:54:32.760 --> 00:54:34.040 We've already been working on that 00:54:34.040 --> 00:54:36.160 for the last several weeks. 00:54:36.160 --> 00:54:37.480 How we can do that. 00:54:37.480 --> 00:54:39.560 So we can address that 00:54:39.560 --> 00:54:41.260 when someone is not being compliant 00:54:41.260 --> 00:54:43.080 to what they said they were going to do. 00:54:43.080 --> 00:54:45.560 Not wait till that quarterly deposit assessment 00:54:45.560 --> 00:54:46.920 and address it immediately 00:54:46.920 --> 00:54:49.240 as soon as they are not showing compliance 00:54:49.240 --> 00:54:52.720 with why the deposit was waived in the first place. 00:54:52.720 --> 00:54:55.760 And then continued enhancements for the Plus One program. 00:54:55.760 --> 00:54:58.800 So this year, if additional funding wanted to be given, 00:54:58.800 --> 00:54:59.840 we could do that. 00:54:59.840 --> 00:55:01.240 We are going to go ahead 00:55:01.240 --> 00:55:06.080 and put in an additional $50,000 in our budget for '19-'20. 00:55:06.080 --> 00:55:09.480 Just in anticipation of just need for our customers 00:55:09.480 --> 00:55:13.360 and just want to be responsive to that. 00:55:13.360 --> 00:55:16.160 And then educating our customers on the assistant options. 00:55:16.160 --> 00:55:17.440 So Navigant did bring up, 00:55:17.440 --> 00:55:19.500 how can you take those customers 00:55:19.500 --> 00:55:22.860 that may say trigger things like financial crisis, 00:55:22.860 --> 00:55:27.080 health issue, how can we address what their need is 00:55:27.080 --> 00:55:28.680 in a more holistic manner. 00:55:28.680 --> 00:55:30.640 And so making sure they know all the options 00:55:30.640 --> 00:55:31.920 that are open in the community. 00:55:31.920 --> 00:55:34.720 So we're having some conversations with the team right now 00:55:34.720 --> 00:55:36.740 on how we could train certain reps 00:55:36.740 --> 00:55:39.120 to have a group of people that work through 00:55:39.120 --> 00:55:40.840 kind of these crisis situations 00:55:40.840 --> 00:55:43.520 in addition to the interfaith ministry program. 00:55:43.520 --> 00:55:46.000 And then continue to review our current contract 00:55:46.000 --> 00:55:49.160 with the interfaith ministries and our available options 00:55:49.160 --> 00:55:51.640 to make sure that we have that good customer service 00:55:51.640 --> 00:55:53.640 experience and responsiveness 00:55:53.640 --> 00:55:56.080 that we desire for our customers. 00:55:56.080 --> 00:55:58.320 And then lastly, just continue to increase 00:55:58.320 --> 00:55:59.700 that pay-as-you-go option, 00:55:59.700 --> 00:56:01.640 make sure we got that public awareness. 00:56:01.640 --> 00:56:03.000 We just went live a month ago, 00:56:03.000 --> 00:56:05.600 so now we're actually crafting some videos 00:56:05.600 --> 00:56:08.360 and additional marketing that we could do 00:56:08.360 --> 00:56:11.680 to make sure the customers know about that option. 00:56:11.680 --> 00:56:15.000 And then just ongoing staff training regarding that. 00:56:15.000 --> 00:56:17.160 So those are the changes I wanted to discuss 00:56:17.160 --> 00:56:19.280 over the last year, where we're at right now, 00:56:19.280 --> 00:56:21.960 what our plan is to address what we've seen thus far. 00:56:21.960 --> 00:56:24.760 And I'm happy to answer any questions. 00:56:24.760 --> 00:56:27.520 - Questions? 00:56:27.520 --> 00:56:29.780 - Can we go back to the, 00:56:32.320 --> 00:56:34.240 it's the plus one assistance program 00:56:34.240 --> 00:56:36.000 with the interfaith logo on the top. 00:56:36.000 --> 00:56:37.900 - This one or the next one? 00:56:37.900 --> 00:56:39.120 - The next one, I'm sorry. 00:56:39.120 --> 00:56:40.680 Yes. 00:56:40.680 --> 00:56:41.840 Okay, on the funds forecast. 00:56:41.840 --> 00:56:43.600 - Could you move closer to the mic again? 00:56:43.600 --> 00:56:45.320 - I'm sorry, I'm sorry. 00:56:45.320 --> 00:56:46.480 I'll have to lay back. 00:56:46.480 --> 00:56:51.280 Opportunity for additional five to $10,000. 00:56:51.280 --> 00:56:55.680 I don't recall how that funding works 00:56:55.680 --> 00:56:59.280 and how those monies become deposited 00:56:59.280 --> 00:57:00.980 into that account for use. 00:57:01.960 --> 00:57:04.680 - So we give interfaith ministries, 00:57:04.680 --> 00:57:05.560 we write a check for them, 00:57:05.560 --> 00:57:07.640 I believe on it's a quarterly basis right now. 00:57:07.640 --> 00:57:10.640 And that's the pool of money that they have to use. 00:57:10.640 --> 00:57:11.680 Yes, sir. 00:57:11.680 --> 00:57:12.520 For the plus one. 00:57:12.520 --> 00:57:15.280 And so we get a report on a monthly basis 00:57:15.280 --> 00:57:17.760 saying here's all the funds that we've used. 00:57:17.760 --> 00:57:21.040 They do call us daily or send an email to SLS. 00:57:21.040 --> 00:57:23.520 No, I'm gonna help Dr. Banks with this amount of money. 00:57:23.520 --> 00:57:26.880 So we're able to see daily what they're doing for us 00:57:26.880 --> 00:57:29.440 so we can document that on the customer's account, 00:57:29.440 --> 00:57:31.120 prevent them from being disconnected 00:57:31.120 --> 00:57:33.180 while we receive those funds with it. 00:57:33.180 --> 00:57:36.160 But that's, we distribute the money to them 00:57:36.160 --> 00:57:37.400 to be able to use. 00:57:37.400 --> 00:57:39.600 - Yes. - That's how that process works. 00:57:39.600 --> 00:57:44.600 - So does the total balance of the plus one account 00:57:44.600 --> 00:57:48.560 go out to interfaith or is it just as they request 00:57:48.560 --> 00:57:49.780 what they need, that's it? 00:57:49.780 --> 00:57:51.800 - It's the contract amount per year. 00:57:51.800 --> 00:57:52.960 So I don't know, correct me, 00:57:52.960 --> 00:57:56.600 how much do we give them on a quarterly basis? 00:57:56.600 --> 00:57:59.000 - It's gonna be $25,000. 00:57:59.000 --> 00:58:01.320 - Flat fee? - Flat, I'm sorry. 00:58:01.320 --> 00:58:03.760 - Okay. - That includes their admin fees 00:58:03.760 --> 00:58:08.600 and the distributions for the amount to be administered to. 00:58:08.600 --> 00:58:09.800 - So, yeah, I'm sorry. 00:58:09.800 --> 00:58:11.320 Their administration fee is a flat fee. 00:58:11.320 --> 00:58:13.720 It's not based on how much they disperse. 00:58:13.720 --> 00:58:16.280 - Correct, their administration fee for this year 00:58:16.280 --> 00:58:21.280 when we upped it to $125,000 is $18,966 on an annual basis. 00:58:21.280 --> 00:58:23.760 - Okay, it's this annual budget of $125,000. 00:58:23.760 --> 00:58:24.600 - Yes. 00:58:24.600 --> 00:58:28.520 But we pay them quarterly. - Correlatively. 00:58:28.520 --> 00:58:30.160 - Yes. - Okay. 00:58:30.160 --> 00:58:32.520 - But we're in constant contact with them 00:58:32.520 --> 00:58:34.760 to make sure that they don't run out of funds 00:58:34.760 --> 00:58:37.240 and that the customers are never given the reason. 00:58:37.240 --> 00:58:40.120 - What's the balance of that account, our account? 00:58:40.120 --> 00:58:42.400 - Right now for this fiscal year. 00:58:42.400 --> 00:58:43.800 - Just total. 00:58:43.800 --> 00:58:45.440 - Well, it's based off of fiscal year. 00:58:45.440 --> 00:58:46.440 - So you don't keep, I mean, 00:58:46.440 --> 00:58:48.400 like if you have $25,000 left over, 00:58:48.400 --> 00:58:51.040 you don't keep that in that account? 00:58:51.040 --> 00:58:52.200 You erase it at the end of the year? 00:58:52.200 --> 00:58:54.280 - No, we pay them out on a quarterly basis. 00:58:54.280 --> 00:58:55.320 No, we don't. 00:58:55.320 --> 00:58:56.840 I see what you're saying. - Yes. 00:58:56.840 --> 00:58:57.960 - We use all the funds. 00:58:57.960 --> 00:59:00.040 We've used all the funds every single year. 00:59:00.040 --> 00:59:01.280 - Yeah, I was gonna say. 00:59:01.280 --> 00:59:04.440 - They could use more than every year. 00:59:04.440 --> 00:59:05.960 - Yes. - Yeah. 00:59:05.960 --> 00:59:08.960 - So the average amount that a customer gets assisted 00:59:08.960 --> 00:59:13.600 right now is about $369 and 40% of the customers 00:59:13.600 --> 00:59:16.760 that get assisted is over $500 when they get assistance. 00:59:16.760 --> 00:59:19.640 So when they do make assistance for a customer, 00:59:19.640 --> 00:59:22.520 it's pretty substantial for it. 00:59:22.520 --> 00:59:25.120 But I can find out exactly how much we have left 00:59:25.120 --> 00:59:26.600 unless Adam can pull that while we're-- 00:59:26.600 --> 00:59:28.200 - Let me make sure I understand this again. 00:59:28.200 --> 00:59:31.240 Maybe I didn't understand what you were saying. 00:59:31.240 --> 00:59:32.600 At the end of the year, if you've got a balance 00:59:32.600 --> 00:59:35.760 of $25,000 in the plus one account that you haven't used, 00:59:35.760 --> 00:59:37.160 do you clear the account? 00:59:37.160 --> 00:59:39.600 - No, we can continue to still use those funds. 00:59:39.600 --> 00:59:40.760 - So that-- 00:59:40.760 --> 00:59:44.400 - It can be rolled over, but we've never had an extra 00:59:44.400 --> 00:59:46.560 to be able to roll over. - Where does it go? 00:59:46.560 --> 00:59:50.520 Where does the $25,000 go if it doesn't roll over? 00:59:50.520 --> 00:59:52.360 - It's always been used. - We've never had it. 00:59:52.360 --> 00:59:53.200 - It's always used. 00:59:53.200 --> 00:59:54.400 - It's always been used. - It's always used. 00:59:54.400 --> 00:59:57.400 - So have you taken more out of the city's accounts 00:59:57.400 --> 01:00:01.080 to if you've under collected for that $125,000? 01:00:01.080 --> 01:00:03.120 - I'm sorry, I guess I'm not following the question. 01:00:03.120 --> 01:00:06.720 - Okay, so let's say you didn't collect $125,000 01:00:06.720 --> 01:00:07.560 from plus one. 01:00:07.560 --> 01:00:13.000 - Well, we allocate, in our budget, customer service budget, 01:00:13.000 --> 01:00:15.400 we have a line item that's for interfaith ministries, 01:00:15.400 --> 01:00:18.600 the plus one program for 125,000. 01:00:18.600 --> 01:00:20.440 So we fund it at the beginning of the year. 01:00:20.440 --> 01:00:21.320 - So if you do collect or you don't collect, 01:00:21.320 --> 01:00:22.920 you're giving them 125,000. 01:00:22.920 --> 01:00:23.760 - Yes. 01:00:23.760 --> 01:00:25.840 - And then the returns may just come out of general revenues, 01:00:25.840 --> 01:00:27.920 or not general, but utility revenues. 01:00:27.920 --> 01:00:28.760 - Yes, sir. 01:00:28.760 --> 01:00:30.320 So we fund it October 1st. 01:00:30.320 --> 01:00:33.240 We're funded for 125,000 for that year. 01:00:33.240 --> 01:00:36.840 And then we give interfaith that payment on a quarterly basis 01:00:36.840 --> 01:00:38.240 for them to be able to use. 01:00:38.240 --> 01:00:41.400 If they say, hey, we're running short or low, 01:00:41.400 --> 01:00:43.160 then we can always increase that for them. 01:00:43.160 --> 01:00:45.720 - But the one slide said that you had an opportunity 01:00:45.720 --> 01:00:48.480 to put another $5,000 to $10,000 into that. 01:00:48.480 --> 01:00:49.600 - So we can increase our, 01:00:49.600 --> 01:00:51.680 but we can do a budget amendment for this year, 01:00:51.680 --> 01:00:54.920 'cause right now we have appropriation for 125,000. 01:00:54.920 --> 01:00:57.560 If we say that we wanna have additional funding 01:00:57.560 --> 01:01:00.440 for these families coming in with the heavy months, 01:01:00.440 --> 01:01:02.240 then we can increase that by 10,000. 01:01:02.240 --> 01:01:05.320 So we'll have an additional $10,000 to assist. 01:01:05.320 --> 01:01:06.520 - I heard that and I read that, 01:01:06.520 --> 01:01:09.200 but why, where those numbers come from, 01:01:09.200 --> 01:01:11.240 the number five to $10,000? 01:01:11.240 --> 01:01:12.320 - That's just a projection 01:01:12.320 --> 01:01:14.880 based off what we're seeing right now 01:01:14.880 --> 01:01:17.360 with the heavier amounts coming in 01:01:17.360 --> 01:01:20.080 and the amount that they're assisting right now 01:01:20.080 --> 01:01:23.440 with 40% of the customers are getting up to $500 01:01:23.440 --> 01:01:26.040 when they're coming in, and that's right now. 01:01:26.040 --> 01:01:27.640 - So you think that number's gonna be higher 01:01:27.640 --> 01:01:28.480 is why you've thrown out the-- 01:01:28.480 --> 01:01:31.000 - Well, the summer month utility bills are higher, 01:01:31.000 --> 01:01:33.440 so usually that's what's obviously 01:01:33.440 --> 01:01:35.720 increasing the fund need for that. 01:01:35.720 --> 01:01:37.160 - But we had summer months last year. 01:01:37.160 --> 01:01:38.760 That's what I'm not understanding is what-- 01:01:38.760 --> 01:01:40.600 - We have summer months, that's correct, 01:01:40.600 --> 01:01:43.120 but one of the things with the changes in the program, 01:01:43.120 --> 01:01:46.440 a customer can get assistance up to three times now, 01:01:46.440 --> 01:01:49.720 and so the same person, repeat customer, 01:01:49.720 --> 01:01:52.240 can go back and need assistance again. 01:01:52.240 --> 01:01:56.160 So that's been the change in the additional need. 01:01:56.160 --> 01:01:59.080 And also deposits are also included 01:01:59.080 --> 01:02:00.320 where they weren't previously. 01:02:00.320 --> 01:02:01.680 So a new customer coming in 01:02:01.680 --> 01:02:04.680 or a customer that gets assessed an additional deposit, 01:02:04.680 --> 01:02:06.920 they get assessed a $200 deposit, 01:02:06.920 --> 01:02:08.040 they can go to Interfaith and say, 01:02:08.040 --> 01:02:09.080 I'm struggling with this, 01:02:09.080 --> 01:02:10.600 they can get assistance for the deposit. 01:02:10.600 --> 01:02:13.280 So that's another thing we did not have last year. 01:02:13.280 --> 01:02:16.720 So again, we're trying to really grow through this 01:02:16.720 --> 01:02:18.520 to see, okay, this is the needs that we're seeing 01:02:18.520 --> 01:02:19.960 with the program changes. 01:02:19.960 --> 01:02:23.160 So we didn't have those changes last summer months. 01:02:23.160 --> 01:02:26.960 I just wanna make sure that if you had an appetite 01:02:26.960 --> 01:02:27.960 to increase those funds, 01:02:27.960 --> 01:02:30.680 that we were able to help those families. 01:02:30.680 --> 01:02:33.440 - If you foresee it going over our usual budget, 01:02:33.440 --> 01:02:36.160 that I'm all for increasing that number, so. 01:02:36.160 --> 01:02:37.760 - Thank you for the questions. 01:02:37.760 --> 01:02:40.600 - Thank you. 01:02:40.600 --> 01:02:44.520 - I have a question, but I can see you want one. 01:02:44.520 --> 01:02:45.360 So go ahead, Brent. 01:02:45.360 --> 01:02:48.480 - I have a question, just kind of what you talked about, 01:02:48.480 --> 01:02:51.000 a little bit about the prepay program, 01:02:51.000 --> 01:02:53.880 not the pay as you go, 01:02:53.880 --> 01:02:57.440 but the prepay where they get the deposit waiver 01:02:57.440 --> 01:03:00.360 if they sign up for preauthorized payments. 01:03:00.360 --> 01:03:02.520 Do you give them that deposit waiver 01:03:02.520 --> 01:03:05.080 before they actually sign up for preauthorized payments? 01:03:05.080 --> 01:03:07.640 - So that's one of the opportunities 01:03:07.640 --> 01:03:11.120 is that they're coming into the utility system 01:03:11.120 --> 01:03:13.400 and we usually collect the deposit upfront 01:03:13.400 --> 01:03:15.640 to establish the account. 01:03:15.640 --> 01:03:17.840 Their account number isn't established 01:03:17.840 --> 01:03:19.120 and they need the account number 01:03:19.120 --> 01:03:21.280 to set up their payment portal 01:03:21.280 --> 01:03:23.880 to be able to sign up for draft. 01:03:23.880 --> 01:03:25.560 So that's one of the challenges 01:03:25.560 --> 01:03:28.360 is you don't have the account number set up 01:03:28.360 --> 01:03:30.280 until we've gotten the first bill 01:03:30.280 --> 01:03:33.040 and it's established for you to get your account number. 01:03:33.040 --> 01:03:35.680 So that's one of the challenges that we have found 01:03:35.680 --> 01:03:37.960 is we're kind of trusting that they're gonna do it 01:03:37.960 --> 01:03:39.320 and that hasn't worked. 01:03:39.320 --> 01:03:40.680 So we're gonna have to find different ways. 01:03:40.680 --> 01:03:43.640 - Do we have an idea of how many of them 01:03:43.640 --> 01:03:45.520 promise and then don't follow up? 01:03:45.520 --> 01:03:46.840 - 55%. 01:03:46.840 --> 01:03:50.760 - Oh, maybe that's not an option. 01:03:50.760 --> 01:03:54.320 - You said it, I didn't, so. 01:03:54.320 --> 01:03:56.840 - Well, perhaps that could just be simplified 01:03:56.840 --> 01:03:59.480 by collecting the deposit and then reimbursing it 01:03:59.480 --> 01:04:00.680 when they've set it up. 01:04:00.680 --> 01:04:02.960 I mean. 01:04:02.960 --> 01:04:06.400 - That's a recommendation that we definitely can take 01:04:06.400 --> 01:04:08.680 'cause what is happening is I know 01:04:08.680 --> 01:04:11.280 during the deposit assessment, the audit, 01:04:11.280 --> 01:04:13.360 55% said they're gonna do it. 01:04:13.360 --> 01:04:15.880 That number is the exact same number of people 01:04:15.880 --> 01:04:19.640 who took that option and just didn't maintain it 01:04:19.640 --> 01:04:20.480 or didn't do it. 01:04:20.480 --> 01:04:24.240 - And they're already high-risk customers anyway, right? 01:04:24.240 --> 01:04:26.240 - Coming into the utility system, 01:04:26.240 --> 01:04:30.080 we have about 26.8% of our customers coming in 01:04:30.080 --> 01:04:31.960 would require a one-month deposit 01:04:31.960 --> 01:04:35.800 and then 34.2% would require the two-month deposit 01:04:35.800 --> 01:04:39.440 and 45% of those customers coming in that need a deposit 01:04:39.440 --> 01:04:40.960 say I'll just pay the deposit. 01:04:40.960 --> 01:04:43.800 The other 55% say no, I'll do the deposit waiver 01:04:43.800 --> 01:04:47.480 and then we're finding that 55% did not sign up 01:04:47.480 --> 01:04:49.040 for the waiver nor maintain it. 01:04:49.040 --> 01:04:52.080 So it's very correlated to what's going on. 01:04:52.080 --> 01:04:59.560 - From where I'm sitting, then we either do like Brendan said, 01:04:59.560 --> 01:05:03.280 you charge in the deposit and refund it after they sign up 01:05:03.280 --> 01:05:08.520 or we don't do it anymore because the bad debts are, 01:05:08.520 --> 01:05:13.400 I'd rather give more money to the plus one program 01:05:13.400 --> 01:05:15.440 to help those people who really need it 01:05:15.440 --> 01:05:18.640 than to be doing this. 01:05:18.640 --> 01:05:21.280 - That's an option we're vetting out right now 01:05:21.280 --> 01:05:23.800 and we don't need an ordinance change with that. 01:05:23.800 --> 01:05:24.920 That's an internal thing. 01:05:24.920 --> 01:05:29.660 So that's definitely a takeaway for us to dive into. 01:05:29.660 --> 01:05:31.880 - I have one more question. 01:05:31.880 --> 01:05:35.600 So after 90 days, we send it to a collection agency. 01:05:35.600 --> 01:05:37.920 Do we bid those services out annually? 01:05:37.920 --> 01:05:40.120 - Yes, it goes to, it's not bid annually. 01:05:40.120 --> 01:05:43.240 It's a three-year contract, one-year renewals 01:05:43.240 --> 01:05:46.280 customer, pardon me, credit collections international 01:05:46.280 --> 01:05:48.080 has that contract right now. 01:05:48.080 --> 01:05:52.240 They have about a 30% return rate for that overall 01:05:52.240 --> 01:05:54.000 for what we've placed with them. 01:05:54.000 --> 01:05:55.800 They've collected 30% for us. 01:05:55.800 --> 01:05:58.960 - And then after 180 days, we really, really write it off 01:05:58.960 --> 01:06:00.640 or we sell the debt to somebody? 01:06:00.640 --> 01:06:02.360 - We do not sell the debt to someone. 01:06:02.360 --> 01:06:04.120 We just write it off of our books. 01:06:04.120 --> 01:06:07.300 So we know what our age debt is with it. 01:06:07.300 --> 01:06:10.960 But CSI, the collection agency continues collection efforts 01:06:10.960 --> 01:06:13.920 'cause obviously they do not get paid until they collect. 01:06:13.920 --> 01:06:16.480 And so they continue to scrub accounts 01:06:16.480 --> 01:06:19.000 and see if someone has popped up in another utility system. 01:06:19.000 --> 01:06:20.440 - That's part of our contract. 01:06:20.440 --> 01:06:23.640 - Yeah, we don't, that's inactive collection. 01:06:23.640 --> 01:06:25.000 So we pay them to do it. 01:06:25.000 --> 01:06:25.880 - Okay, all right. 01:06:25.880 --> 01:06:27.360 - Could you go back to the slide 01:06:27.360 --> 01:06:32.360 where you showed our previous, what, our policy, what, 01:06:32.360 --> 01:06:35.380 oh, you almost go back this way. 01:06:35.380 --> 01:06:38.120 That one. - This one? 01:06:38.120 --> 01:06:42.000 - So do you have any data that would say 01:06:42.000 --> 01:06:44.920 if we kept both of them at two month average, 01:06:44.920 --> 01:06:49.040 would that have made a difference also? 01:06:49.040 --> 01:06:52.560 Or the deposit is working, the deposit itself, 01:06:52.560 --> 01:06:55.440 whether it's one month or two month, works 01:06:55.440 --> 01:07:00.440 if they actually sign up for the reoccurring? 01:07:00.440 --> 01:07:04.380 Is that the item, I guess is what I'm trying to ask, 01:07:04.380 --> 01:07:08.240 that's probably causing the increases, 01:07:08.240 --> 01:07:09.760 that we're not getting a deposit 01:07:09.760 --> 01:07:11.640 when somebody should have had one? 01:07:11.640 --> 01:07:14.860 - Particularly not getting the deposit 01:07:14.860 --> 01:07:18.080 based off the payment behaviors that are going to come. 01:07:18.080 --> 01:07:20.680 And then also it's always based off 01:07:20.680 --> 01:07:22.840 of what ends up happening with that account. 01:07:22.840 --> 01:07:25.360 And because it's a postpaid environment 01:07:25.360 --> 01:07:28.800 for most of these accounts, they got that current bill 01:07:28.800 --> 01:07:31.040 and then what they used, 'cause we're not billing it 01:07:31.040 --> 01:07:33.040 till 45 days out with it. 01:07:33.040 --> 01:07:36.320 And so that one month deposit isn't covering 01:07:36.320 --> 01:07:38.160 that last bill amount. 01:07:38.160 --> 01:07:41.440 - Which is why most utilities use a two month average. 01:07:41.440 --> 01:07:43.080 - Yeah. - 'Cause it's too late. 01:07:43.080 --> 01:07:46.400 - So it's definitely an influencer. 01:07:46.400 --> 01:07:48.300 - All right, thank you. 01:07:48.300 --> 01:07:51.540 Other questions? 01:07:51.540 --> 01:07:57.640 Okay, did you need direction from us? 01:07:57.640 --> 01:08:00.520 - We go to council tomorrow with the same thing. 01:08:00.520 --> 01:08:03.040 So definitely if they are supportive 01:08:03.040 --> 01:08:06.360 of an additional plus one increase for this year, 01:08:06.360 --> 01:08:09.120 then we'll be coming back with a budget amendment 01:08:09.120 --> 01:08:09.940 regarding that. 01:08:09.940 --> 01:08:12.800 So I think that's the item that I'm seeking direction on 01:08:12.800 --> 01:08:13.640 right now. 01:08:13.640 --> 01:08:17.120 - Everybody's shaking heads, so. 01:08:17.120 --> 01:08:19.560 - 'Cause those hot months are gonna be really hard 01:08:19.560 --> 01:08:21.640 on the elderly and some other-- 01:08:21.640 --> 01:08:22.880 - And with the program changes, 01:08:22.880 --> 01:08:25.800 we really don't know how it'll be impacted 01:08:25.800 --> 01:08:28.120 since we changed it significantly 01:08:28.120 --> 01:08:29.600 by the last three months. - Correct. 01:08:29.600 --> 01:08:31.480 - We're gonna know come the summer 01:08:31.480 --> 01:08:34.680 and I'd rather have additional funding. 01:08:34.680 --> 01:08:36.160 And of course if we don't use that funding, 01:08:36.160 --> 01:08:38.120 we can roll it over and use it. 01:08:38.120 --> 01:08:39.400 I think we're gonna use it though. 01:08:39.400 --> 01:08:40.400 - Yeah. 01:08:40.400 --> 01:08:43.840 - Keep us, try to find some way to keep us up to date 01:08:43.840 --> 01:08:46.920 on their responses to their performance improvements 01:08:46.920 --> 01:08:49.320 on responding to people who get back with them. 01:08:49.320 --> 01:08:52.480 I'd hate to think that they weren't meeting 01:08:52.480 --> 01:08:54.200 their contractual responsibility. 01:08:54.200 --> 01:08:57.280 - We can definitely, what we can do is share the response 01:08:57.280 --> 01:08:59.920 to the action plan where we asked and then the follow-up 01:08:59.920 --> 01:09:01.480 questions, we're still working through that, 01:09:01.480 --> 01:09:04.240 so I didn't have that final document to share with you 01:09:04.240 --> 01:09:06.600 tonight, but wanted to let you know about the conversation 01:09:06.600 --> 01:09:09.600 that we're having, but we can bring it with an ACM update, 01:09:09.600 --> 01:09:11.480 have it as backup material and be happy to answer 01:09:11.480 --> 01:09:13.480 any questions once we get over that. 01:09:13.480 --> 01:09:15.640 - Is the mechanism for making sure they actually 01:09:15.640 --> 01:09:19.200 disperse those funds to people in need part of this review 01:09:19.200 --> 01:09:20.040 or no, you're confident-- 01:09:20.040 --> 01:09:22.200 - We can definitely see that they're dispersing the funds 01:09:22.200 --> 01:09:24.520 since we can, they're calling us and emailing us. 01:09:24.520 --> 01:09:27.120 So we knew they were using the funds appropriately 01:09:27.120 --> 01:09:31.040 with it, it was just, we were doing our own kind of calling 01:09:31.040 --> 01:09:33.640 of the system and we're seeing some conflicting 01:09:33.640 --> 01:09:35.600 information, like, you know, let's just make sure 01:09:35.600 --> 01:09:37.320 that our customers are getting what they need 01:09:37.320 --> 01:09:40.480 and some responsiveness and so we're glad that we checked in 01:09:40.480 --> 01:09:42.720 and kind of trust but verify. 01:09:42.720 --> 01:09:43.560 - Thank you. 01:09:43.560 --> 01:09:46.040 - Anything else? 01:09:46.040 --> 01:09:47.760 Thank you for your time tonight. 01:09:47.760 --> 01:09:54.120 - All right, the next item, unless does anybody need a break? 01:09:54.120 --> 01:09:57.640 No, okay, receive a report and hold discussion 01:09:57.640 --> 01:10:00.480 to provide direction on the peak concrete 01:10:00.480 --> 01:10:05.480 water reclamation plant capacity expansion feasibility. 01:10:24.720 --> 01:10:27.160 Thank you all for coming, appreciate it. 01:10:27.160 --> 01:10:28.000 - Thank you. 01:10:28.000 --> 01:10:31.880 - So are you ready to go? 01:10:31.880 --> 01:10:32.720 - Ready to go. 01:10:32.720 --> 01:10:34.480 - Okay, good evening. 01:10:34.480 --> 01:10:38.000 Take a minute here and introduce Brad Miller. 01:10:38.000 --> 01:10:42.000 He is with our consulting firm of Hayden and Sawyer. 01:10:42.000 --> 01:10:44.920 He's an associate with them and he's the project manager. 01:10:44.920 --> 01:10:47.920 So we'll be doing a tag team presentation here on this one. 01:10:54.320 --> 01:10:57.600 So Ken Banks was talking a little bit earlier 01:10:57.600 --> 01:11:00.600 about the capacity and also we will discuss 01:11:00.600 --> 01:11:02.680 that a little bit with you. 01:11:02.680 --> 01:11:05.000 There are two plants, the Robeson Ranch plant 01:11:05.000 --> 01:11:07.200 that you heard about is the small plant, 01:11:07.200 --> 01:11:09.840 captive for Robeson Ranch. 01:11:09.840 --> 01:11:12.600 The larger plant is the Pecan Creek plant, 01:11:12.600 --> 01:11:14.040 which is off of Mayhill Road. 01:11:14.040 --> 01:11:18.080 Spencer Road comes into Mayhill and you just go straight 01:11:18.080 --> 01:11:20.480 they'll take you to the plant there. 01:11:20.480 --> 01:11:24.400 So this plant is permitted to treat 21 million gallons 01:11:24.400 --> 01:11:27.240 per day average flow. 01:11:27.240 --> 01:11:30.280 And we can treat up to 46 million gallons 01:11:30.280 --> 01:11:32.360 during peak wet weather conditions. 01:11:32.360 --> 01:11:36.080 So for up to two hours, we can treat 46 million gallons. 01:11:36.080 --> 01:11:42.160 So TCEQ has a rule on when plant capacity 01:11:42.160 --> 01:11:43.720 has to be expanded. 01:11:43.720 --> 01:11:46.160 This is called the 75 90 rule. 01:11:46.160 --> 01:11:49.240 So when the plant capacity on an average daily basis 01:11:49.240 --> 01:11:54.240 365 day running gets to 75% of the permitted capacity, 01:11:54.240 --> 01:11:56.320 which is 21 million gallons. 01:11:56.320 --> 01:12:01.320 So 21 times 0.75 gives you point 15.75 MGD. 01:12:01.320 --> 01:12:06.400 And then that's the time the design has to begin 01:12:06.400 --> 01:12:09.640 for the plant expansion. 01:12:09.640 --> 01:12:12.360 And when the capacity gets to 90%, 01:12:12.360 --> 01:12:17.000 which is 0.9 times 21 gets to 18.9 MGD, 01:12:17.000 --> 01:12:18.320 then the construction has to begin. 01:12:18.320 --> 01:12:21.520 So we can keep up with the flows coming to the plant 01:12:21.520 --> 01:12:22.920 and continue to provide the service 01:12:22.920 --> 01:12:24.840 for expansion in the city. 01:12:24.840 --> 01:12:28.720 So if you look at the data, 01:12:28.720 --> 01:12:33.000 here is the actual flows that we have experienced 01:12:33.000 --> 01:12:36.920 in the last few years from 2014 through 2018. 01:12:36.920 --> 01:12:40.320 This is the projection going forward, as you can see. 01:12:40.320 --> 01:12:43.840 So if you go by that 15.75 MGD, 01:12:43.840 --> 01:12:46.760 sometime between 21, 22, 01:12:46.760 --> 01:12:48.360 we will probably hit that number. 01:12:48.360 --> 01:12:51.760 So that's what we are looking at, 01:12:51.760 --> 01:12:55.440 as to when we will have to do a plant capacity expansion. 01:12:55.440 --> 01:12:58.440 And this is one way to keep up with that. 01:12:58.440 --> 01:13:05.800 Plant costs have gone up substantially 01:13:05.800 --> 01:13:07.520 in the last several years. 01:13:07.520 --> 01:13:11.240 Just to give you a comparison 01:13:11.240 --> 01:13:16.040 when we did the plant expansion back in 2002, 2003, 01:13:16.040 --> 01:13:18.360 we were able to do it about $3 a gallon. 01:13:18.360 --> 01:13:24.320 And we added about six MGD capacity at that time 01:13:24.320 --> 01:13:27.200 for roughly less than $18 million at that time, 01:13:27.200 --> 01:13:30.920 17 million, 700,000, and then design costs and all. 01:13:30.920 --> 01:13:33.400 So it was over 19 million with design costs. 01:13:33.400 --> 01:13:37.600 But we added a lot of concrete for our beneficial reuse 01:13:37.600 --> 01:13:40.160 for the compost operation as part of that. 01:13:40.160 --> 01:13:43.040 Now, we look at the Metroplex, 01:13:43.040 --> 01:13:45.280 and if you go west, it's even higher. 01:13:46.120 --> 01:13:50.440 $10 to $20 a gallon of wastewater treated, 01:13:50.440 --> 01:13:51.920 depends on the size of the plant. 01:13:51.920 --> 01:13:53.880 Small plants cost more, 01:13:53.880 --> 01:13:56.440 and larger plants, because of economy of scale, 01:13:56.440 --> 01:13:58.920 they cost a little bit less money. 01:13:58.920 --> 01:14:01.840 So if you just use a number of five million gallon 01:14:01.840 --> 01:14:05.000 plant expansion, or to build a new plant, 01:14:05.000 --> 01:14:07.960 50 to 75 million dollars, 01:14:07.960 --> 01:14:10.040 based on the level of treatment required. 01:14:10.040 --> 01:14:14.600 And this is getting more and more stringent 01:14:14.600 --> 01:14:16.280 as you go forward. 01:14:16.280 --> 01:14:19.800 Trying to get a permit from TCEQ, 01:14:19.800 --> 01:14:22.520 going to a lake is getting harder and harder. 01:14:22.520 --> 01:14:30.960 And with that, I'm gonna turn this over to Brandt here 01:14:30.960 --> 01:14:33.560 for the next few slides, and I'll come back after that. 01:14:33.560 --> 01:14:41.080 - All right, thank you, PS, 01:14:41.080 --> 01:14:44.200 and thank you all for the time this evening 01:14:44.200 --> 01:14:46.520 to share a little bit about this project. 01:14:46.520 --> 01:14:50.800 As PS mentioned, kind of faced with those costs 01:14:50.800 --> 01:14:52.480 for expansion of the plant. 01:14:52.480 --> 01:14:57.640 Pretty high, $10 to $20 per gallon. 01:14:57.640 --> 01:14:59.040 He wanted to first look at, 01:14:59.040 --> 01:15:01.280 are there things that we could do 01:15:01.280 --> 01:15:02.800 with the existing infrastructure 01:15:02.800 --> 01:15:04.520 to get more capacity of the plant? 01:15:04.520 --> 01:15:06.880 Are there new technologies out there 01:15:06.880 --> 01:15:09.880 that would allow them to take advantage 01:15:09.880 --> 01:15:12.520 of the investment that you've already made 01:15:12.520 --> 01:15:13.880 in the concrete plant? 01:15:15.000 --> 01:15:19.680 And really with the goal to increase capacity 01:15:19.680 --> 01:15:22.080 at a lower overall cost. 01:15:22.080 --> 01:15:25.480 And the criteria that we were given by PS and his group 01:15:25.480 --> 01:15:29.480 was that they were trying to get an additional five MGD 01:15:29.480 --> 01:15:32.820 out of the plant in terms of average daily flow. 01:15:32.820 --> 01:15:35.880 They did not want to expand the plant 01:15:35.880 --> 01:15:38.560 in terms of the actual physical footprint. 01:15:38.560 --> 01:15:42.040 They wanted us to look at enhancement technologies 01:15:42.040 --> 01:15:43.320 on the market today. 01:15:44.280 --> 01:15:49.280 And so we several years ago had partnered with PS's group 01:15:49.280 --> 01:15:52.680 to develop a process model, 01:15:52.680 --> 01:15:56.160 which basically models the existing facility 01:15:56.160 --> 01:15:58.880 and the performance of that facility 01:15:58.880 --> 01:16:03.120 through a computational model, computer-based model. 01:16:03.120 --> 01:16:06.160 And so we plan to use that same model 01:16:06.160 --> 01:16:07.840 to evaluate some of these technologies. 01:16:07.840 --> 01:16:12.440 We're able to do that feasibility or a desktop level analysis 01:16:12.440 --> 01:16:14.840 before actually putting anything in the ground. 01:16:14.840 --> 01:16:20.400 So we proceeded to identify several alternatives 01:16:20.400 --> 01:16:22.600 to look at as part of this project. 01:16:22.600 --> 01:16:25.440 And they're kind of categorized as one, two, three, 01:16:25.440 --> 01:16:29.040 but the first one is targeting primary treatment, 01:16:29.040 --> 01:16:33.120 which is the first major unit process of the plant. 01:16:33.120 --> 01:16:36.680 Really there to remove most of the solids coming in. 01:16:36.680 --> 01:16:41.220 And the three kind of sub options to enhance treatment, 01:16:41.220 --> 01:16:43.520 that unit process treatment was one, 01:16:43.520 --> 01:16:45.800 to add chemical to the process 01:16:45.800 --> 01:16:47.600 to be able to get more solids out 01:16:47.600 --> 01:16:51.440 and increase overall treatment capacity. 01:16:51.440 --> 01:16:53.000 The second one was to put in 01:16:53.000 --> 01:16:55.140 some kind of filtration technology, 01:16:55.140 --> 01:16:58.200 which again, the goal would be to remove more solids 01:16:58.200 --> 01:17:00.840 upfront of the biological process. 01:17:00.840 --> 01:17:04.600 And then the third one is called the Captivator system, 01:17:04.600 --> 01:17:07.160 which is trademarked by Evoqua. 01:17:07.160 --> 01:17:08.840 They're the only ones that make the system, 01:17:08.840 --> 01:17:12.640 but it's essentially a technology that enhances 01:17:12.640 --> 01:17:15.420 the solids removal in that phase of treatment. 01:17:15.420 --> 01:17:18.320 The second area that we looked at 01:17:18.320 --> 01:17:20.200 was the secondary process itself, 01:17:20.200 --> 01:17:24.900 which is the aeration basins, it's the biological process. 01:17:24.900 --> 01:17:27.200 And several options that we looked at, 01:17:27.200 --> 01:17:31.640 one again is trademarked by Evoqua is called BioMag, 01:17:31.640 --> 01:17:34.720 which is basically adding magnetite to the wastewater, 01:17:34.720 --> 01:17:39.180 it allows you to push more flow through your existing plant. 01:17:39.180 --> 01:17:44.000 IFAS, which is integrated fixed film activated sludge, 01:17:44.000 --> 01:17:47.360 which essentially is growing biomass on plastic media 01:17:47.360 --> 01:17:49.240 that you add to the basins. 01:17:49.240 --> 01:17:50.920 So you're not expanding concrete, 01:17:50.920 --> 01:17:53.260 you're trying to get more treatment 01:17:53.260 --> 01:17:55.240 out of your existing volume. 01:17:55.240 --> 01:18:00.240 And then the MABR is the membrane aerobic bioreactor, 01:18:01.640 --> 01:18:04.680 which is essentially IFAS on steroids. 01:18:04.680 --> 01:18:08.160 It's a technology improvement beyond IFAS 01:18:08.160 --> 01:18:10.280 that uses membranes to infuse air 01:18:10.280 --> 01:18:12.280 into the treatment process. 01:18:12.280 --> 01:18:14.680 The last one was really just to look at 01:18:14.680 --> 01:18:16.200 the site specific conditions. 01:18:16.200 --> 01:18:18.400 So the clarifiers that you have out there, 01:18:18.400 --> 01:18:20.320 the settling characteristics of the sludge, 01:18:20.320 --> 01:18:23.480 sometimes those things are better from one plant to another 01:18:23.480 --> 01:18:26.440 and we're able to justify additional capacity 01:18:26.440 --> 01:18:30.000 just based on the characteristics of your sludge. 01:18:30.000 --> 01:18:32.400 And then the last one is recycled solids. 01:18:32.400 --> 01:18:34.560 With any wastewater treatment plant, 01:18:34.560 --> 01:18:37.800 you're also treating solids that are leaving the process 01:18:37.800 --> 01:18:40.120 and you have some solids that come back to the plant. 01:18:40.120 --> 01:18:43.040 If we can improve that removal efficiency 01:18:43.040 --> 01:18:44.680 and get those solids out, 01:18:44.680 --> 01:18:46.640 then it increases overall capacity. 01:18:46.640 --> 01:18:49.560 So at the end of the day, 01:18:49.560 --> 01:18:52.720 what we found was that SEPT, 01:18:52.720 --> 01:18:54.920 chemically enhanced primary treatment, 01:18:54.920 --> 01:18:58.460 was the least cost option to get the additional 5-MGD. 01:18:59.440 --> 01:19:02.120 Our planning level capital costs 01:19:02.120 --> 01:19:05.720 showed that this was about $2.80 per gallon. 01:19:05.720 --> 01:19:10.720 So very similar to the 2002 expansion that was done 01:19:10.720 --> 01:19:15.400 and much lower than the 10 to $20 per gallon. 01:19:15.400 --> 01:19:18.520 So total cost would be about $14 million 01:19:18.520 --> 01:19:22.120 and that includes additional solids handling capacity 01:19:22.120 --> 01:19:24.660 'cause you've now increased the total capacity of the plant. 01:19:24.660 --> 01:19:28.080 You have to be able to handle those solids as well. 01:19:28.080 --> 01:19:31.320 And as I mentioned, it did compare favorably 01:19:31.320 --> 01:19:36.040 to the $50 to $75 million that PS had just mentioned. 01:19:36.040 --> 01:19:37.400 And one other thing to note, 01:19:37.400 --> 01:19:41.520 one reason this option was fairly attractive at the plant 01:19:41.520 --> 01:19:44.760 was because one of the chemicals that is used is iron 01:19:44.760 --> 01:19:46.840 and you're already using iron at the plant 01:19:46.840 --> 01:19:48.000 to remove phosphorus. 01:19:48.000 --> 01:19:52.280 So we're kind of taking, killing two birds with one stone, 01:19:52.280 --> 01:19:54.760 taking advantage of what you already have to do 01:19:54.760 --> 01:19:56.880 to also increase capacity at the plant. 01:19:58.080 --> 01:20:00.240 (mumbles) 01:20:00.240 --> 01:20:06.080 - Thank you, Brian. 01:20:06.080 --> 01:20:13.760 So the 5-MGD was my high number. 01:20:13.760 --> 01:20:16.160 I didn't think that we could get 5-MGD. 01:20:16.160 --> 01:20:17.320 I always, all these years, 01:20:17.320 --> 01:20:20.000 I thought I could always get two to 3-MGD. 01:20:20.000 --> 01:20:23.240 So we actually did some jar testing 01:20:23.240 --> 01:20:24.280 and with the jar testing, 01:20:24.280 --> 01:20:27.620 that data was put into the model for the CEP process. 01:20:27.620 --> 01:20:30.000 So there's a little bit more comfort level 01:20:30.000 --> 01:20:31.360 that yes, we can get there. 01:20:31.360 --> 01:20:37.160 If we do this 5-MGD expansion here, 01:20:37.160 --> 01:20:39.280 then we have a plan to build 01:20:39.280 --> 01:20:41.560 in Hickory Creek Basin in the future. 01:20:41.560 --> 01:20:43.920 We can continue to pump flows 01:20:43.920 --> 01:20:46.880 from the Hickory Creek Basin to this plant. 01:20:46.880 --> 01:20:51.880 And we, instead of building a plant there in 2027-28 timeframe, 01:20:53.240 --> 01:20:58.240 we can push it by 12, 13, about 2040 timeframe. 01:20:58.240 --> 01:21:00.160 So that really makes a big difference 01:21:00.160 --> 01:21:01.760 in how much money we have to put out. 01:21:01.760 --> 01:21:06.600 'Cause that plant, we looked at total build out, 01:21:06.600 --> 01:21:10.360 based on projections, was 24 million gallons per day. 01:21:10.360 --> 01:21:13.800 So I was looking at first module of 8-MGD 01:21:13.800 --> 01:21:15.680 and then another rate and another rate after that. 01:21:15.680 --> 01:21:19.060 So 8-MGD plant, at least $80 million. 01:21:19.060 --> 01:21:22.940 So we don't have to put out $80 million in 2027. 01:21:22.940 --> 01:21:26.160 But we can do this about $14 million 01:21:26.160 --> 01:21:29.120 and push that expense further down the road. 01:21:29.120 --> 01:21:32.160 On top of that, when we do build that plant 01:21:32.160 --> 01:21:37.000 in Hickory Creek Basin, we have a permit 01:21:37.000 --> 01:21:38.880 for a small plant in Clear Creek Basin. 01:21:38.880 --> 01:21:43.880 0.95 million gallons per day, 950,000 gallons per day. 01:21:43.880 --> 01:21:46.160 We are going to do away with the plant construction 01:21:46.160 --> 01:21:49.240 in the Clear Creek Basin and pump all that 01:21:49.240 --> 01:21:51.160 to the Pecan Creek plant. 01:21:51.160 --> 01:21:53.480 And down the road, when all the flows 01:21:53.480 --> 01:21:56.040 from the Hickory Creek Basin are diverted 01:21:56.040 --> 01:21:57.760 into the Hickory Creek plant, 01:21:57.760 --> 01:21:59.600 then we have excess capacity left over 01:21:59.600 --> 01:22:01.720 in the Pecan Creek plant that will serve 01:22:01.720 --> 01:22:03.520 for the entire Clear Creek Basin. 01:22:03.520 --> 01:22:05.680 So it's a huge saving. 01:22:05.680 --> 01:22:07.720 It'll add up to a couple hundred million dollars 01:22:07.720 --> 01:22:09.480 by the time it's all said and done. 01:22:09.480 --> 01:22:14.980 So how we get there? 01:22:14.980 --> 01:22:17.800 Now we know that, yes, it is feasible for us 01:22:17.800 --> 01:22:19.800 to do this plant. 01:22:19.800 --> 01:22:22.720 By the way, we actually asked our consultant 01:22:22.720 --> 01:22:25.720 to also look at the loading 01:22:25.720 --> 01:22:30.840 from the plant effluent at 25 MGD. 01:22:30.840 --> 01:22:33.880 And what will be the plant effluent 01:22:33.880 --> 01:22:36.920 that TCEQ should be giving us? 01:22:36.920 --> 01:22:39.560 And if we don't load any more pounds 01:22:39.560 --> 01:22:41.960 of the same pollutants, 01:22:41.960 --> 01:22:44.880 we can live with the lower discharge limit on us 01:22:44.880 --> 01:22:48.440 because we treat at a level much lower than right now. 01:22:48.440 --> 01:22:51.920 So talking to my plant guys and our plant superintendent, 01:22:51.920 --> 01:22:55.040 they feel very comfortable that we can take a lower limit 01:22:55.040 --> 01:22:58.040 on the plant effluent and still provide the treatment 01:22:58.040 --> 01:22:59.680 and meet the regulatory criteria. 01:22:59.680 --> 01:23:04.520 The estimated cost for the sub-process upgrade 01:23:04.520 --> 01:23:07.080 where we are not adding any more capacity right now, 01:23:07.080 --> 01:23:08.760 'cause we don't have a permit, right? 01:23:08.760 --> 01:23:10.200 But we can change the process 01:23:10.200 --> 01:23:11.880 and we work with TCEQ and show them 01:23:11.880 --> 01:23:13.680 that this is what we're going to do. 01:23:13.680 --> 01:23:17.360 Majority of the system is already in place 01:23:17.360 --> 01:23:20.080 as part of the phosphorus removal process, 01:23:20.080 --> 01:23:22.120 but we have to add polymer. 01:23:22.120 --> 01:23:23.480 So we have to house that unit. 01:23:23.480 --> 01:23:26.080 We have to put a pump for it, electrical. 01:23:26.080 --> 01:23:29.360 There is some additional sampling equipment to buy 01:23:29.360 --> 01:23:31.560 to get all the data. 01:23:31.560 --> 01:23:34.440 So we will then, once this is set up, 01:23:34.440 --> 01:23:37.640 then we will run the plant in this mode for about a year 01:23:37.640 --> 01:23:40.120 to prove to TCEQ that, look, this works. 01:23:40.120 --> 01:23:43.800 So we want to come back and do a major amendment 01:23:43.800 --> 01:23:47.920 to our permit to get the 26 MGD instead of 21 MGD 01:23:47.920 --> 01:23:49.960 average daily flow capacity. 01:23:49.960 --> 01:23:54.680 So if the board will give the direction today 01:23:54.680 --> 01:23:57.040 to move forward with the sub-process, 01:23:57.040 --> 01:23:59.960 then we will come back at you for the authorization 01:23:59.960 --> 01:24:03.440 to spend the $100,000 as we collect the data 01:24:03.440 --> 01:24:06.720 from the vendors and we bid that and we come back at you 01:24:06.720 --> 01:24:09.400 that this is the expenditure we're going to do. 01:24:09.400 --> 01:24:11.480 And with that, I stand for any questions. 01:24:13.640 --> 01:24:14.480 - Nope. 01:24:14.480 --> 01:24:20.880 So just to clarify, we would switch to the SEPT process 01:24:20.880 --> 01:24:23.440 but not actually do the treatment. 01:24:23.440 --> 01:24:24.800 Is that what you're saying? 01:24:24.800 --> 01:24:26.640 - No, we will do the treatment with that. 01:24:26.640 --> 01:24:30.360 We are already actually adding ferric chloride downstream. 01:24:30.360 --> 01:24:35.520 This will allow us to add that ferric chloride 01:24:35.520 --> 01:24:38.200 upstream process in the primary site. 01:24:38.200 --> 01:24:39.720 And so-- - I guess I'm confused 01:24:39.720 --> 01:24:44.600 how we, how does what we want to do differ 01:24:44.600 --> 01:24:47.160 from what we're going to end up doing? 01:24:47.160 --> 01:24:49.760 Because it says it's only going to cost $100,000 01:24:49.760 --> 01:24:51.240 to move to that process. - Oh, the $100,000 01:24:51.240 --> 01:24:54.480 is to install the initial system to, 01:24:54.480 --> 01:24:57.240 because in the future then we'll have to add a digester, 01:24:57.240 --> 01:25:00.080 we have to have more irrigation capacity, 01:25:00.080 --> 01:25:04.840 we have to have, those are the two big things. 01:25:04.840 --> 01:25:08.480 So those costs are also added into the $14 million. 01:25:09.880 --> 01:25:12.160 So those we don't need right now. 01:25:12.160 --> 01:25:14.360 - So this is more like the pilot program. 01:25:14.360 --> 01:25:15.680 - Yes. - To prove it. 01:25:15.680 --> 01:25:16.880 - Very true. - And then, okay. 01:25:16.880 --> 01:25:18.280 - Got it. 01:25:18.280 --> 01:25:23.280 - On page three, you show some historical projection data. 01:25:23.280 --> 01:25:30.560 Did we build a new treatment plan or something in 2017? 01:25:30.560 --> 01:25:32.680 What-- - No, sir, this is-- 01:25:32.680 --> 01:25:34.240 - How did we get a reduce 01:25:34.240 --> 01:25:37.080 and that kind of reduction in flows there? 01:25:37.080 --> 01:25:38.600 - These two years ago, if you remember, 01:25:38.600 --> 01:25:42.760 we got 57, 60 inches of rainfall. 01:25:42.760 --> 01:25:43.600 - Oh, yeah. 01:25:43.600 --> 01:25:46.120 - And during that time, we get infiltration, 01:25:46.120 --> 01:25:48.320 inflow in the sewer lines. 01:25:48.320 --> 01:25:51.080 If a manhole, somebody opened a manhole cover 01:25:51.080 --> 01:25:54.040 in the, where the creek is and the line is there, 01:25:54.040 --> 01:25:55.440 water gets into it. 01:25:55.440 --> 01:25:58.880 There are cracks in the lines, groundwater gets high, 01:25:58.880 --> 01:26:00.840 it goes through the cracks into the sewer line. 01:26:00.840 --> 01:26:02.040 - Okay. - And it goes 01:26:02.040 --> 01:26:05.360 through the manholes, which are in the creek area, 01:26:05.360 --> 01:26:08.080 through the manholes, so they get more flow. 01:26:08.080 --> 01:26:10.320 TCEQ recognized that, that this happened 01:26:10.320 --> 01:26:12.720 not only in Dallas area, but around Texas. 01:26:12.720 --> 01:26:14.360 So they didn't come after anybody 01:26:14.360 --> 01:26:16.920 to start expanding the plant at that time. 01:26:16.920 --> 01:26:20.600 And as you can see, we do have a very robust infiltration 01:26:20.600 --> 01:26:23.280 inflow control program in place, 01:26:23.280 --> 01:26:25.360 working with our asset management program. 01:26:25.360 --> 01:26:28.320 So we continue to enhance our system 01:26:28.320 --> 01:26:30.240 on the collection system side. 01:26:30.240 --> 01:26:33.000 So the intent is to spend the money there, 01:26:33.000 --> 01:26:34.560 so we don't have to spend the big bucks 01:26:34.560 --> 01:26:35.960 to expand the plant. 01:26:35.960 --> 01:26:38.680 That's what it would, that's what it is doing for us. 01:26:38.680 --> 01:26:40.440 'Cause the flows are right now, 01:26:40.440 --> 01:26:42.480 what we had back in 2003. 01:26:42.480 --> 01:26:46.640 And we probably added about 35, 40,000 people 01:26:46.640 --> 01:26:50.240 in the city during that window, and lots of businesses. 01:26:50.240 --> 01:26:55.000 So it's a testament to the money we've been spending 01:26:55.000 --> 01:26:58.280 on new lines, new interceptor sewers, 01:26:58.280 --> 01:27:01.120 and all the existing sewer system that we have 01:27:01.120 --> 01:27:06.120 that we continue to rehab those. 01:27:06.120 --> 01:27:09.560 Either we do point repairs, or we go in 01:27:09.560 --> 01:27:12.280 and put a brand new line to replace the existing line, 01:27:12.280 --> 01:27:14.760 so that it cuts down the infiltration inflow. 01:27:14.760 --> 01:27:15.600 - Okay. - Okay. 01:27:15.600 --> 01:27:20.120 - Do we know of anybody else who's done this before? 01:27:20.120 --> 01:27:26.200 - The CEPT process is not new, so yeah, it's been around. 01:27:26.200 --> 01:27:30.240 In fact, when we started out the phosphorus project, 01:27:30.240 --> 01:27:32.440 CEPT was one of the options at that time. 01:27:32.440 --> 01:27:33.800 It's kind of, we already have this, 01:27:33.800 --> 01:27:36.640 because we have multiple points of injection 01:27:36.640 --> 01:27:39.360 of ferric chloride that were built. 01:27:39.360 --> 01:27:41.360 So the point we will be introducing ferric chloride now 01:27:41.360 --> 01:27:43.120 is already built into the system. 01:27:43.120 --> 01:27:45.400 - Okay, all right. 01:27:45.400 --> 01:27:47.160 - Okay, so it's been done before, 01:27:47.160 --> 01:27:48.720 but we still have to prove it? 01:27:48.720 --> 01:27:52.720 - We have to prove it to get the additional capacity. 01:27:52.720 --> 01:27:53.960 - For the permit? - For 21MVD, 01:27:53.960 --> 01:27:55.080 we could do it. - Oh. 01:27:55.080 --> 01:27:57.680 - Yeah, to get the additional 5MVD, 01:27:57.680 --> 01:27:59.000 yeah, we need to get that. 01:27:59.000 --> 01:28:01.320 - Okay. - Okay, so what does 01:28:01.320 --> 01:28:06.320 the $13.9 million, what does the 13.9 pay for? 01:28:06.320 --> 01:28:11.200 - Well, it will pay for the total 5MVD expansion. 01:28:11.200 --> 01:28:13.080 - What is that? 01:28:13.080 --> 01:28:18.040 - Well, it will include, the chemical feed is already there, 01:28:18.040 --> 01:28:20.760 but it has the digester, like I said, 01:28:20.760 --> 01:28:22.440 it has the aeration equipment, 01:28:22.440 --> 01:28:24.600 we'll have to add more aeration, 01:28:24.600 --> 01:28:27.720 so we'll have to buy more compressors 01:28:27.720 --> 01:28:30.760 to put more air out there, I'm trying to remember. 01:28:30.760 --> 01:28:34.200 The solids handling in the system, 01:28:34.200 --> 01:28:36.760 that will be upsized. - The what ones? 01:28:36.760 --> 01:28:38.040 - Solids handling, 01:28:38.040 --> 01:28:40.920 because when we precipitate out the solids, 01:28:40.920 --> 01:28:42.920 we have to treat those, right? 01:28:42.920 --> 01:28:44.560 - Yes, I hope so. - So that system 01:28:44.560 --> 01:28:47.840 will be, as part of that expansion, 01:28:47.840 --> 01:28:50.160 it will be put in place also. 01:28:50.160 --> 01:28:52.320 - So is there, but there's not a lot more expansion 01:28:52.320 --> 01:28:56.040 of capacity as far as what you're storing 01:28:56.040 --> 01:28:59.200 or letting settle, like in the past, is that correct? 01:28:59.200 --> 01:29:00.040 - Correct. - Okay. 01:29:00.040 --> 01:29:01.920 - The vast, PS mentioned the vast. 01:29:01.920 --> 01:29:03.440 - You need to go to the mic. 01:29:03.440 --> 01:29:08.480 - As PS mentioned, 01:29:08.480 --> 01:29:10.960 I think the vast majority of the 14 million 01:29:10.960 --> 01:29:13.120 is in solids handling, 01:29:13.120 --> 01:29:16.280 so we looked at the capacity of all the existing 01:29:16.280 --> 01:29:19.000 unit processes to handle the solids, 01:29:19.000 --> 01:29:22.640 so that's thickening and then digestion, he mentioned, 01:29:22.640 --> 01:29:25.560 which gets it to that compost product that you all use, 01:29:25.560 --> 01:29:27.200 you have to do digestion, 01:29:27.200 --> 01:29:29.640 and then dewatering to remove water 01:29:29.640 --> 01:29:31.800 before you send it to composting. 01:29:31.800 --> 01:29:36.280 And all of those areas were designed for 21-MGD, 01:29:36.280 --> 01:29:38.760 so when you go to 26-MGD, 01:29:38.760 --> 01:29:41.360 you have to have more volume and more capacity 01:29:41.360 --> 01:29:44.040 and more mechanical equipment 01:29:44.040 --> 01:29:46.720 to be able to treat those solids, 01:29:46.720 --> 01:29:50.400 and there's really no intensification option 01:29:50.400 --> 01:29:52.440 to get more out of those than you already have. 01:29:52.440 --> 01:29:53.760 - This is more on the end 01:29:53.760 --> 01:29:55.000 than the beginning of the treatment? 01:29:55.000 --> 01:29:56.800 - Yes. - Okay. 01:29:56.800 --> 01:29:59.040 - So today you're asking for head shakes 01:29:59.040 --> 01:30:02.400 on $100,000 to prove it. 01:30:02.400 --> 01:30:04.400 - Yes. - Okay. 01:30:04.400 --> 01:30:06.040 - And you're really gonna prove it by showing 01:30:06.040 --> 01:30:09.240 that the affluent is getting properly treated, right? 01:30:09.240 --> 01:30:10.960 We're not increasing our capacity, 01:30:10.960 --> 01:30:12.880 we're just changing to this system, 01:30:12.880 --> 01:30:14.280 dumping this chemical in there, 01:30:14.280 --> 01:30:15.840 and then gonna demonstrate that yes, 01:30:15.840 --> 01:30:17.880 this chemical's working with our affluent. 01:30:17.880 --> 01:30:19.200 - Yes. - Okay, okay. 01:30:19.200 --> 01:30:21.360 - And you'll bring the item back officially? 01:30:21.360 --> 01:30:24.000 - Yes, once we get authorization from you, 01:30:24.920 --> 01:30:28.920 we are going to go ahead and start putting together the bits 01:30:28.920 --> 01:30:33.400 for buying some of the equipment that we need. 01:30:33.400 --> 01:30:37.600 That is what the cost is. - Okay. 01:30:37.600 --> 01:30:39.600 - 'Cause we have to house, we have to build a small building 01:30:39.600 --> 01:30:43.200 to house the chemical unit there, the pump, 01:30:43.200 --> 01:30:45.680 the electrical instrumentation, all those things in there. 01:30:45.680 --> 01:30:46.720 - Okay. 01:30:46.720 --> 01:30:49.320 - I suspect we're gonna be pulling this chemical back out 01:30:49.320 --> 01:30:51.200 before we dump it in the water, right? 01:30:51.200 --> 01:30:53.440 - In the creek? - Yes. 01:30:53.440 --> 01:30:55.560 - Yeah, it's not going into the creek, because-- 01:30:55.560 --> 01:30:56.400 - It just goes without saying. 01:30:56.400 --> 01:30:58.560 - Yeah, it goes in-- - We want it back out 01:30:58.560 --> 01:30:59.400 before we dump it back in the creek. 01:30:59.400 --> 01:31:01.000 - Just close it downstream from our-- 01:31:01.000 --> 01:31:02.600 (laughing) 01:31:02.600 --> 01:31:06.560 - It gets precipitated, and then it goes into our digester, 01:31:06.560 --> 01:31:09.360 and then we press it, then it goes into the compost. 01:31:09.360 --> 01:31:11.560 - All right, okay, thank you. 01:31:11.560 --> 01:31:12.560 - So head shakes? 01:31:12.560 --> 01:31:13.400 Oh, I'm sorry, go ahead. - Oh, yeah, 01:31:13.400 --> 01:31:15.400 I just had a quick question, could you, 01:31:15.400 --> 01:31:18.600 what are the chemicals that are going to be added? 01:31:18.600 --> 01:31:22.520 - Fetichloride and anionic polymer. 01:31:22.520 --> 01:31:24.520 There's another polymer we'll be adding 01:31:24.520 --> 01:31:26.560 to enhance the settling. 01:31:26.560 --> 01:31:27.400 - And that's it? 01:31:27.400 --> 01:31:28.240 - That's it. - That's it. 01:31:28.240 --> 01:31:29.080 Okay, thank you. 01:31:29.080 --> 01:31:33.560 - So, direction, everybody's good? 01:31:33.560 --> 01:31:35.040 - I'd move forward. - Move forward? 01:31:35.040 --> 01:31:36.320 - I think. - I think so. 01:31:36.320 --> 01:31:37.920 - Yeah, that would be a good plan. 01:31:37.920 --> 01:31:40.440 - That's the only way to spend your money. 01:31:40.440 --> 01:31:41.280 - Thank you. 01:31:41.280 --> 01:31:47.840 All right, so we're gonna skip the closed, 01:31:47.840 --> 01:31:49.840 and we'll go into the consent agenda. 01:31:49.840 --> 01:31:53.440 Does any board member wish to pull an item 01:31:53.440 --> 01:31:55.080 from the consent agenda? 01:31:55.080 --> 01:32:00.080 Items A through, oh, J, long one. 01:32:00.080 --> 01:32:05.120 - I do, I'd like to, I'm sorry. 01:32:05.120 --> 01:32:05.960 - That's okay. - I'd like to pull 01:32:05.960 --> 01:32:07.280 item G. 01:32:07.280 --> 01:32:11.520 - All right. 01:32:11.520 --> 01:32:15.480 - And I'd like to pull item D, as in dog. 01:32:15.480 --> 01:32:17.360 - D as in dog. - Dog. 01:32:19.120 --> 01:32:20.440 - G as in girl. 01:32:20.440 --> 01:32:23.800 - And just, what's the relationship between A 01:32:23.800 --> 01:32:26.160 and the work session item that we heard about? 01:32:26.160 --> 01:32:30.520 - That would be approving the agreement with-- 01:32:30.520 --> 01:32:31.360 - Taking action. 01:32:31.360 --> 01:32:33.160 - What he's already presented on. 01:32:33.160 --> 01:32:34.280 - Correct. - Correct. 01:32:34.280 --> 01:32:41.160 - All right, so do we have a motion to approve items 01:32:41.160 --> 01:32:46.160 A through C, B, F, H, I, and J? 01:32:48.560 --> 01:32:51.600 - I move for approval recommendation. 01:32:51.600 --> 01:32:52.440 - I second. 01:32:52.440 --> 01:32:54.800 - All in favor say I. 01:32:54.800 --> 01:32:56.240 - I. - I. 01:32:56.240 --> 01:32:57.640 - Opposed? 01:32:57.640 --> 01:33:00.040 Carries, okay, item D. 01:33:00.040 --> 01:33:07.480 Anybody here to address item D? 01:33:07.480 --> 01:33:08.920 Oh. 01:33:08.920 --> 01:33:10.160 - We don't wanna get out there. 01:33:10.160 --> 01:33:11.600 (laughing) 01:33:11.600 --> 01:33:14.480 - It won't be hard at all. - Sorry about that. 01:33:14.480 --> 01:33:16.040 - That's all right, good evening. 01:33:16.040 --> 01:33:18.280 I'm Jim Janes, I'm one of the project managers 01:33:18.280 --> 01:33:22.000 in the engineering capital improvements division. 01:33:22.000 --> 01:33:26.160 So I can answer particular questions 01:33:26.160 --> 01:33:29.560 or I can do a brief run through of what the item entails. 01:33:29.560 --> 01:33:30.880 - Maybe I can get you out of this real quick. 01:33:30.880 --> 01:33:35.520 My question is, my clarification question would be, 01:33:35.520 --> 01:33:37.320 the reason the increase in the engineering fee 01:33:37.320 --> 01:33:38.800 is because there's additional right of way 01:33:38.800 --> 01:33:41.640 that wasn't planned for originally, is that correct? 01:33:41.640 --> 01:33:42.920 That needs to be acquired? 01:33:42.920 --> 01:33:47.920 - Yes, additional easements and right of way parcel. 01:33:48.480 --> 01:33:52.840 Acquisitions that weren't immediately apparent, 01:33:52.840 --> 01:33:56.400 but as our consultant got well into the design, 01:33:56.400 --> 01:33:59.000 they found that they were necessary. 01:33:59.000 --> 01:34:01.600 - So that could be additional funds necessary 01:34:01.600 --> 01:34:04.680 to acquire those easements and right of ways? 01:34:04.680 --> 01:34:05.520 - Yes. 01:34:05.520 --> 01:34:08.120 - We don't have an estimate for that number yet? 01:34:08.120 --> 01:34:09.040 - No sir. 01:34:09.040 --> 01:34:10.120 - Okay. 01:34:10.120 --> 01:34:13.360 - I don't have that for you tonight, I'm sorry. 01:34:13.360 --> 01:34:15.440 - Okay, that clarifies, I'm fine. 01:34:15.440 --> 01:34:16.280 - Okay. 01:34:17.320 --> 01:34:19.640 - Okay, do we have a motion to approve item D? 01:34:19.640 --> 01:34:20.480 - Move approval. 01:34:20.480 --> 01:34:22.560 - Second. 01:34:22.560 --> 01:34:24.440 - Okay, all in favor say aye. 01:34:24.440 --> 01:34:26.040 - Aye. 01:34:26.040 --> 01:34:27.000 - Opposed? 01:34:27.000 --> 01:34:28.040 Carries. 01:34:28.040 --> 01:34:29.160 Item G. 01:34:29.160 --> 01:34:35.240 Do we have, oh, here we go. 01:34:35.240 --> 01:34:40.440 Of course you're gonna pull a network contract. 01:34:40.440 --> 01:34:43.080 Do you have a specific question? 01:34:43.080 --> 01:34:45.200 - Well, my questions are actually kind of have more to do 01:34:45.200 --> 01:34:50.200 with like how many employees are we providing 01:34:50.200 --> 01:34:52.240 safety shoes to? 01:34:52.240 --> 01:34:53.480 - I knew you were gonna ask me that 01:34:53.480 --> 01:34:56.120 because I do not have the answer specifically. 01:34:56.120 --> 01:35:00.960 It's for all of our field service crews. 01:35:00.960 --> 01:35:05.320 So that includes water, wastewater, drainage, solid waste, 01:35:05.320 --> 01:35:08.800 the warehouse staff, parks, airport, 01:35:08.800 --> 01:35:12.760 anywhere that they're having out in the field working, 01:35:12.760 --> 01:35:14.760 they have certain safety requirements. 01:35:14.760 --> 01:35:15.920 - Does anyone have a guess? 01:35:15.920 --> 01:35:19.200 200, 500, 300, 150? 01:35:19.200 --> 01:35:22.640 - That looks like about 600 and some odd pairs a year 01:35:22.640 --> 01:35:24.400 at $150 a pair of boots. 01:35:24.400 --> 01:35:27.480 - Yeah, our average is about $150 per boot. 01:35:27.480 --> 01:35:30.000 - So it's one kind of boot. 01:35:30.000 --> 01:35:32.720 It's not multiple types of foot gear. 01:35:32.720 --> 01:35:34.880 It's just one type of boot essentially. 01:35:34.880 --> 01:35:36.320 - It's a type of boots, 01:35:36.320 --> 01:35:39.880 but they can choose different styles, right. 01:35:39.880 --> 01:35:42.280 - Do they have any financial responsibility 01:35:42.280 --> 01:35:46.120 for acquiring the boot or is it just something we provide? 01:35:46.120 --> 01:35:48.760 - No, the city provides it as part of their uniform. 01:35:48.760 --> 01:35:50.160 - And if they work for us for three months, 01:35:50.160 --> 01:35:51.320 they get the boots? 01:35:51.320 --> 01:35:55.800 - We do have, each department has their own specific policy 01:35:55.800 --> 01:35:59.880 for their uniform, but I believe they get one pair a year. 01:35:59.880 --> 01:36:01.320 - Okay. 01:36:01.320 --> 01:36:02.640 Okay, all right, thank you. 01:36:02.640 --> 01:36:03.480 - Okay, that was easy. 01:36:03.480 --> 01:36:05.160 - That was just a lot of money for boots. 01:36:05.160 --> 01:36:08.000 I just wanted to know who we were giving boots to. 01:36:11.000 --> 01:36:13.320 - Move approval. - Okay, second? 01:36:13.320 --> 01:36:14.160 Is there a second? 01:36:14.160 --> 01:36:15.360 - Second. 01:36:15.360 --> 01:36:16.560 - All in favor say aye. 01:36:16.560 --> 01:36:17.400 - Aye. 01:36:17.400 --> 01:36:19.920 - Carries. 01:36:19.920 --> 01:36:24.640 All right, so then now we go into closed. 01:36:24.640 --> 01:36:39.080 Okay, it's about 822 and we'll reopen the public portion 01:36:39.480 --> 01:36:41.400 of the board meeting. 01:36:41.400 --> 01:36:43.760 Next item is consider approval 01:36:43.760 --> 01:36:48.080 of the public utilities board minutes of February 25th. 01:36:48.080 --> 01:36:50.840 Are there any changes or corrections? 01:36:50.840 --> 01:36:55.720 Then they'll stand approved as presented. 01:36:55.720 --> 01:37:00.040 And our next item is consider the adoption 01:37:00.040 --> 01:37:02.600 of an ordinance authorizing the city manager 01:37:02.600 --> 01:37:07.240 for the sale of natural gas with enterprise projects 01:37:07.240 --> 01:37:10.600 in operating LLC. 01:37:10.600 --> 01:37:11.440 - Thank you very much. 01:37:11.440 --> 01:37:15.360 Good evening, George Morrow, general manager of DME. 01:37:15.360 --> 01:37:17.760 I'm here tonight bringing forward to you 01:37:17.760 --> 01:37:22.480 for your consideration a proposed natural gas contract 01:37:22.480 --> 01:37:23.600 for the deck. 01:37:23.600 --> 01:37:26.360 Our current contract expires at the end of this month, 01:37:26.360 --> 01:37:28.760 so this would be a replacement arrangement. 01:37:28.760 --> 01:37:33.760 And it's with a party that we have some experience with 01:37:33.760 --> 01:37:36.560 called Enterprise Products Operating LLC. 01:37:36.560 --> 01:37:39.120 And that experience has been extremely positive. 01:37:39.120 --> 01:37:42.960 So I wish I could say more tonight, 01:37:42.960 --> 01:37:47.280 but just the nature of the competitive gas market 01:37:47.280 --> 01:37:50.960 and the terms of our business arrangements to buy gas, 01:37:50.960 --> 01:37:55.720 I'm really not at a liberty to go further into it. 01:37:55.720 --> 01:37:57.480 Though I would mention to the public 01:37:57.480 --> 01:38:00.160 that we did hold a closed session earlier 01:38:00.160 --> 01:38:02.480 to kind of go through the details of that arrangement. 01:38:02.480 --> 01:38:07.480 So with that, I'm interested if you're in the recommendation 01:38:07.480 --> 01:38:12.360 from the PUB to authorize city manager 01:38:12.360 --> 01:38:15.280 to enter into this agreement with enterprise. 01:38:15.280 --> 01:38:23.720 - Yeah, I'd like to make a motion to approve consideration B. 01:38:23.720 --> 01:38:27.840 - Okay, all in favor say aye. 01:38:27.840 --> 01:38:28.680 - Aye. 01:38:28.680 --> 01:38:29.760 - Opposed? 01:38:29.760 --> 01:38:31.440 Motion carries. 01:38:31.440 --> 01:38:32.600 - Thank you very much. 01:38:32.600 --> 01:38:35.440 - Take over Kenny. 01:38:35.440 --> 01:38:36.740 - Okay, I will. 01:38:36.740 --> 01:38:38.680 Thank you, Madam Chair. 01:38:38.680 --> 01:38:43.680 We have a few items on the ACM update. 01:38:43.680 --> 01:38:49.320 The first one is the FY18-19 first quarter financial report. 01:38:49.320 --> 01:38:52.800 There's a large amount of information available to you. 01:38:52.800 --> 01:38:57.360 Mr. Tony Puente is here to answer any questions 01:38:57.360 --> 01:38:59.480 any of you that might have on that. 01:38:59.480 --> 01:39:04.380 Item two is the wastewater services agreement update. 01:39:04.380 --> 01:39:07.760 That item went forward as an informal staff report 01:39:07.760 --> 01:39:11.480 to the city council on the last Friday reading file 01:39:11.480 --> 01:39:13.800 because we were not able to get scheduled 01:39:13.800 --> 01:39:16.560 a work session item on that. 01:39:16.560 --> 01:39:19.400 The work sessions are getting very stacked up. 01:39:19.400 --> 01:39:23.060 And so we provided it as an ISR 01:39:23.060 --> 01:39:25.560 and I just simply wanted the board to have the opportunity 01:39:25.560 --> 01:39:28.100 to see the exact same information 01:39:28.100 --> 01:39:29.900 that we had provided to the council. 01:39:29.900 --> 01:39:35.120 DME has provided the Georgetown power supply overview 01:39:35.120 --> 01:39:38.240 and I'm sure that George would be happy to answer 01:39:38.240 --> 01:39:40.600 any questions that any of you might have. 01:39:40.600 --> 01:39:43.640 On our future agenda item list, 01:39:43.640 --> 01:39:47.360 we have a couple of items that are still pending. 01:39:47.360 --> 01:39:50.480 The MCI poll attachment agreement we're still working on 01:39:50.480 --> 01:39:52.480 and so we'll work on getting that rescheduled 01:39:52.480 --> 01:39:55.340 to a future meeting. 01:39:55.340 --> 01:39:59.400 The same is true of the EGLE substation item. 01:39:59.400 --> 01:40:02.200 The Hazen and Sawyer wastewater treatment plan expansion 01:40:02.200 --> 01:40:04.440 you heard this evening so that one's been completed. 01:40:04.440 --> 01:40:07.320 And then the pipe bursting agreement. 01:40:07.320 --> 01:40:08.560 We're still working on that. 01:40:08.560 --> 01:40:11.120 We're actually progressing with the design phase on it 01:40:11.120 --> 01:40:13.200 but we've got to finalize the agreement. 01:40:13.200 --> 01:40:14.880 We're getting close and we hope to bring that back 01:40:14.880 --> 01:40:16.560 to you shortly. 01:40:16.560 --> 01:40:19.240 The only other item is the new business matrix 01:40:19.240 --> 01:40:22.000 and we have two items on that matrix 01:40:22.000 --> 01:40:26.040 at the current time. 01:40:26.040 --> 01:40:31.080 One of them was to consider whether or not 01:40:31.080 --> 01:40:32.900 to move the public utility board meetings 01:40:32.900 --> 01:40:35.840 to morning time only and we'll schedule that 01:40:35.840 --> 01:40:38.940 to come forward at some time in the near future. 01:40:38.940 --> 01:40:42.120 And then we have another pending item from Mr. Cheek 01:40:42.120 --> 01:40:43.820 regarding what we're paying for the energy 01:40:43.820 --> 01:40:46.600 and how long the contracts are, the options. 01:40:46.600 --> 01:40:50.400 So we'll be able to bring that back 01:40:50.400 --> 01:40:52.160 at some point in the future. 01:40:52.160 --> 01:40:53.520 - Did we just do that? 01:40:53.520 --> 01:40:55.900 - Well, essentially, yes. 01:40:55.900 --> 01:40:59.320 - Plans, we have our weather plans 01:40:59.320 --> 01:41:00.620 and our existing up there. 01:41:00.620 --> 01:41:04.680 - Yes, Dr. Banks, so in the closed session we just had, 01:41:04.680 --> 01:41:08.360 we touched on that subject as part of our review 01:41:08.360 --> 01:41:10.220 of renewable rate agreements. 01:41:10.220 --> 01:41:13.520 So I think unless there's further questions 01:41:13.520 --> 01:41:17.320 then I think we've, I'd offer that we've done that. 01:41:17.320 --> 01:41:18.640 - That's a pretty good presentation, thank you, George. 01:41:18.640 --> 01:41:19.480 - Thank you. 01:41:20.600 --> 01:41:21.420 - And that's all I have. 01:41:21.420 --> 01:41:24.600 - All right, and we're on to concluding items. 01:41:24.600 --> 01:41:27.920 Are there any items that a board member 01:41:27.920 --> 01:41:29.920 would like to be brought back 01:41:29.920 --> 01:41:34.820 in the next board meeting, our future board meeting? 01:41:34.820 --> 01:41:38.740 Okay, hearing none, do we have a motion to adjourn? 01:41:38.740 --> 01:41:40.440 - I move we adjourn. 01:41:40.440 --> 01:41:41.840 - Second. - Second. 01:41:41.840 --> 01:41:43.200 - Okay, we're adjourned.