1 00:00:00,000 --> 00:00:07,720 >> Okay. It is 9 o'clock and we do have a call to order the public utilities board for 2 00:00:07,720 --> 00:00:14,840 the City of Denton on Monday, August 28, 2023. The first item is presentations from the members 3 00:00:14,840 --> 00:00:19,760 of the public. We didn't get any e-comments, correct, Kim? Is there anyone from the public 4 00:00:19,760 --> 00:00:24,840 who wishes to speak? Okay. I see none. We'll move on to items for 5 00:00:24,840 --> 00:00:30,240 individual consideration. The first item is considered approval of the August 14, 2023 6 00:00:30,240 --> 00:00:37,080 minutes. Do we have any changes or corrections? Seeing none, do we have a motion to approve? 7 00:00:37,080 --> 00:00:40,760 Thomas moves. And Barbara seconds. All in favor say aye. 8 00:00:40,760 --> 00:00:41,760 >> Aye. 9 00:00:41,760 --> 00:00:48,080 >> Aye. Carries. Next item is consider recommending the adoption of an ordinance for the wood 10 00:00:48,080 --> 00:01:06,800 utility poles in the amount of $8,250,000. >> Good morning, members of the PB. Randy 11 00:01:06,800 --> 00:01:12,920 Key, electric engineering supervisor at DME. All right. Bringing forward a contract for 12 00:01:12,920 --> 00:01:21,600 wood utility poles. Wood utility poles are used by DME for existing pole replacements 13 00:01:21,600 --> 00:01:27,080 and new installations. These poles will be stored and managed at the DME campus on Spencer 14 00:01:27,080 --> 00:01:35,280 Drive. The current wood utility pole contract, 6813, is expiring. The NT for this contract 15 00:01:35,280 --> 00:01:45,240 was 3.125 million. We amended this contract by 25% here recently. The NT for this upcoming 16 00:01:45,240 --> 00:01:52,480 contract for 8252 is calculated using historical usage. The priority pole replacement project 17 00:01:52,480 --> 00:01:58,920 replaced 1,600 poles in the next three to five years. And also I'd like to bring up 18 00:01:58,920 --> 00:02:03,880 that prices for wood poles have increased by 80% and the lead times have increased by 19 00:02:03,880 --> 00:02:08,200 nine months. >> Wow. 20 00:02:08,200 --> 00:02:15,160 >> This is a table for our spend and we plan to spend around $1.6 million a year on wood 21 00:02:15,160 --> 00:02:24,720 poles. And we recommend approving this contract with Stella Jones. And at this time I'll take 22 00:02:24,720 --> 00:02:28,120 questions. >> I see Barbara's going to ask a question. 23 00:02:28,120 --> 00:02:31,440 >> Yes, ma'am. >> Yeah. Why do you think we only have one 24 00:02:31,440 --> 00:02:35,240 person that responds after all the requests you send out? 25 00:02:35,240 --> 00:02:41,960 >> That's a great question. So Stella Jones bought up all of the materials to manufacture 26 00:02:41,960 --> 00:02:46,400 the creosote. >> Oh. Pretty clever. 27 00:02:46,400 --> 00:02:54,320 >> Very clever. >> Have you considered using -- I know there's 28 00:02:54,320 --> 00:02:59,080 a price difference, but what in concrete or metal poles and -- 29 00:02:59,080 --> 00:03:04,440 >> Yes, ma'am. We have looked into that. We do have metal and concrete poles on our system. 30 00:03:04,440 --> 00:03:14,300 It's a much smaller percentage. Concrete poles is much more difficult to construct. And pricing 31 00:03:14,300 --> 00:03:21,640 wise it is much more expensive for both. >> Even over the lifetime that they would last? 32 00:03:21,640 --> 00:03:26,500 >> Steel poles, yes. And concrete, it's much more expensive to construct. We currently 33 00:03:26,500 --> 00:03:31,560 don't have the equipment to set the concrete poles. And so that would create more cost. 34 00:03:31,560 --> 00:03:34,660 >> Okay. Thank you. >> You're welcome. 35 00:03:34,660 --> 00:03:39,340 >> Other questions? >> Move approval. 36 00:03:39,340 --> 00:03:41,700 >> Thank you, Barbara. Do we have a second? >> Second. 37 00:03:41,700 --> 00:03:44,640 >> Okay. Devin second. All in favor say aye. 38 00:03:44,640 --> 00:03:48,280 >> Aye. >> Motion carries. Thank you, Randy. 39 00:03:48,280 --> 00:03:50,800 >> Thank you very much. >> The next item is consider recommending 40 00:03:50,800 --> 00:03:57,440 the adoption of rates and fees for the solid waste and recycling collection service. 41 00:03:57,440 --> 00:04:08,660 >> Good morning. Amy Caslik, interim finance director. I'm here today to receive your recommendation 42 00:04:08,660 --> 00:04:13,840 on utility rates. We do have a presentation. If you would like to see that, that covers 43 00:04:13,840 --> 00:04:22,120 this item as well as the next two. Would you like to -- yes. Go ahead, Lee. 44 00:04:22,120 --> 00:04:24,640 >> Sure. >> Better? 45 00:04:24,640 --> 00:04:32,160 >> Better. >> Will you go ahead and call the next two 46 00:04:32,160 --> 00:04:34,880 items? >> Oh, thank you. Since it's on all of them, 47 00:04:34,880 --> 00:04:42,060 okay, then I'll call PUB 23156. Consider recommending the adoption of rates and fees for waste water 48 00:04:42,060 --> 00:04:50,160 service. And item PUB 23158, consider rates and fees for water and waste water service. 49 00:04:50,160 --> 00:04:54,000 >> Thank you. >> Thank you, Mo Salo. 50 00:04:54,000 --> 00:05:01,400 >> Okay. A rate increase is not included for solid waste and recycling for fiscal year 2024. 51 00:05:01,400 --> 00:05:07,920 However, do want to keep in mind that a cost of service study is currently underway. So 52 00:05:07,920 --> 00:05:13,200 the results of that study will be brought forward at a later date. You do, however, 53 00:05:13,200 --> 00:05:19,360 see the rate history for this service including significant rate reductions over the last 54 00:05:19,360 --> 00:05:28,700 several years. While there are no proposed rate increases, we are including a proposal 55 00:05:28,700 --> 00:05:35,720 for a cart change fee of $50 as well as a recycling cart fee of 15. And the $15 would 56 00:05:35,720 --> 00:05:44,400 apply to any customer with more than two carts. So at that third cart, that rate would then 57 00:05:44,400 --> 00:05:50,120 apply for each additional cart. There's also some proposed changes to the language in the 58 00:05:50,120 --> 00:05:58,440 rate ordinance related to bulky waste. And it provides that waste in excess of four cubic 59 00:05:58,440 --> 00:06:05,680 yards will not be collected but instead will be required to be placed in a roll off container. 60 00:06:05,680 --> 00:06:12,400 Places outside of the container are limited to five per week at a weight limit of 50 pounds 61 00:06:12,400 --> 00:06:19,280 per bag. And finally, the ordinance specifies that dishwashers for the purpose of this ordinance 62 00:06:19,280 --> 00:06:24,880 are not considered appliances or electronics. >> Mr. Rybeck has a question. 63 00:06:24,880 --> 00:06:28,600 >> Yes. >> Thank you. Why are dishwashers excluded 64 00:06:28,600 --> 00:06:34,080 from appliances? >> Going to let Director Brian Boehner answer 65 00:06:34,080 --> 00:06:37,760 that for you. >> Thank you. 66 00:06:37,760 --> 00:06:43,640 >> Good morning. Brian Boehner, city of Denton. It has come to our attention and based on 67 00:06:43,640 --> 00:06:48,800 the feedback from our metal recycler, there is too much plastic in a dishwasher these 68 00:06:48,800 --> 00:06:54,760 days to be considered a metal appliance. There's no free on, no electronics that are hazardous 69 00:06:54,760 --> 00:06:58,800 materials that we have to manage in a special way. So that material will go directly to 70 00:06:58,800 --> 00:07:06,100 the landfill. >> Interesting. Thank you. 71 00:07:06,100 --> 00:07:10,600 >> And we will need to make a revision to the red line ordinance that you have in front 72 00:07:10,600 --> 00:07:18,360 of you to ensure that that $50 is stated in the ordinance. We are proposing rate changes 73 00:07:18,360 --> 00:07:20,040 related to -- >> Excuse me. 74 00:07:20,040 --> 00:07:25,480 >> Yes. I'm sorry. Yes. >> One other question. The cart change, this 75 00:07:25,480 --> 00:07:31,780 is a customer requests a different cart, like a larger cart or a smaller cart? 76 00:07:31,780 --> 00:07:35,720 >> Normally that is a free service. However, let's say it's a Tuesday afternoon and I decide 77 00:07:35,720 --> 00:07:39,800 I want a bigger or smaller cart and I need it there Wednesday, that's where the $50 comes 78 00:07:39,800 --> 00:07:44,200 in. Normally it takes us a week to process that. So what this is, is to allow us the 79 00:07:44,200 --> 00:07:50,120 opportunity to ensure we have the appropriate effort to make that next day's service available. 80 00:07:50,120 --> 00:07:57,480 >> Okay. So like urgent cart. >> Correct. For whatever urgent cart change 81 00:07:57,480 --> 00:07:59,360 out, emergency may occur. >> Yes, sir. 82 00:07:59,360 --> 00:08:04,080 >> Is this the recycling cart, is that a one-time fee or a monthly add? 83 00:08:04,080 --> 00:08:11,440 >> No, that is a one-time fee. >> Very good. Thank you. 84 00:08:11,440 --> 00:08:14,840 >> Everyone good with this slide? Okay. Thank you. I didn't want to move on again too quickly. 85 00:08:14,840 --> 00:08:21,840 I apologize. We are proposing increases in each of these rates related to grass, brush 86 00:08:21,840 --> 00:08:31,600 and leaves by $5 a piece. And these fees cover the cost of beneficial reuse. Yes, sir. 87 00:08:31,600 --> 00:08:39,440 >> I apologize. The $15 fee for the recycle cart is actually for additional carts. So 88 00:08:39,440 --> 00:08:44,640 you will get a free cart. But if there's additional recycle carts, then there's a $15 fee for 89 00:08:44,640 --> 00:08:49,200 that. Because we have some people out there with five and six recycle carts that are being 90 00:08:49,200 --> 00:08:54,560 used as garbage carts, for lack of a better term, at no additional cost. And that's what 91 00:08:54,560 --> 00:08:59,880 we're trying to help us abate. >> Okay. So if I could clarify. So then it's 92 00:08:59,880 --> 00:09:05,200 not a single charge for the delivery of the extra cart. It's a monthly charge. 93 00:09:05,200 --> 00:09:07,200 >> It is a monthly charge. >> For keeping the cart. 94 00:09:07,200 --> 00:09:10,200 >> Correct. The additional cart. >> The $15 cart. 95 00:09:10,200 --> 00:09:16,920 >> Yes, ma'am. So if you had a short-term need for an additional and then you were done 96 00:09:16,920 --> 00:09:19,680 with it, then you can send it back. >> Correct. 97 00:09:19,680 --> 00:09:22,640 >> Okay. Thank you. >> Or you could bring that material out to 98 00:09:22,640 --> 00:09:28,640 the City of Denton landfill or the North Lakes Park at no charge and deposit that material 99 00:09:28,640 --> 00:09:39,440 there. >> Yes, sir. 100 00:09:39,440 --> 00:09:45,720 >> We do have a couple of fee removals, and that is removing the fee for contaminated 101 00:09:45,720 --> 00:09:51,240 yard waste, old trees and stumps, which are not collected at the landfill, as well as 102 00:09:51,240 --> 00:09:56,880 concrete actually is then used to offset costs within the landfill. 103 00:09:56,880 --> 00:10:05,720 Anything? Yes. >> A lot of people are using crushed concrete 104 00:10:05,720 --> 00:10:15,400 for various things. Have we are we doing any of that? 105 00:10:15,400 --> 00:10:21,480 >> No, we are not. We cannot scale up to the size that would make it even cost effective 106 00:10:21,480 --> 00:10:25,200 for us to manage that material. And besides, there's three or four contractors out there 107 00:10:25,200 --> 00:10:31,240 that do that commercially and viably. There's no reason for us to get into that business. 108 00:10:31,240 --> 00:10:43,360 >> One more question. Don't sit down. >> My question is, you said commercial contractors, 109 00:10:43,360 --> 00:10:47,200 so do you mean commercial in the sense that they are only gathering those materials from 110 00:10:47,200 --> 00:10:52,640 commercial sites or are these contractors also available to pick up at homes that are 111 00:10:52,640 --> 00:10:55,680 doing major yard renovations? >> Most of the time, if you're doing major 112 00:10:55,680 --> 00:11:00,520 home renovation, major renovation at your home, you've got a contractor, they're going 113 00:11:00,520 --> 00:11:07,960 to haul it wherever. But if you're doing a DIY job that you can put the stuff in a box 114 00:11:07,960 --> 00:11:11,280 in the back of your pickup truck, that material will be collected. But what we're talking 115 00:11:11,280 --> 00:11:18,600 about is the large slabs of concrete that it just becomes impossible for us to manage. 116 00:11:18,600 --> 00:11:22,240 It breaks our equipment, things of that nature. >> I understand the concrete. I was thinking 117 00:11:22,240 --> 00:11:28,120 more in terms of the brush and grass and leaves and tree branches and all that kind of thing. 118 00:11:28,120 --> 00:11:40,720 >> Correct. Okay. Thank you. >> So next we're going to look at the wastewater 119 00:11:40,720 --> 00:11:47,520 proposed rates. So it includes an 11% increase across all customer classes for facility and 120 00:11:47,520 --> 00:11:55,260 usage charges. You'll see that in this rate history, the rate has remained unchanged since 121 00:11:55,260 --> 00:12:02,920 fiscal year 2019, at which time we reduced the rates by 5%. You may also recall from 122 00:12:02,920 --> 00:12:10,440 our discussions about the wastewater budget in our last meeting that there are significant 123 00:12:10,440 --> 00:12:18,320 capital investments needed not only for growth but also just to maintain existing infrastructure. 124 00:12:18,320 --> 00:12:23,640 So as a result, that rate is no longer sufficient to support the needs of the utility. Rate 125 00:12:23,640 --> 00:12:31,480 increases of 10 to 11% are projected each year for the next few years. So this slide 126 00:12:31,480 --> 00:12:42,080 shows the rate comparison. And when we look at this, we're actually using an AWWA standard 127 00:12:42,080 --> 00:12:51,000 that looks at the charge for a 3/4 inch meter and 8,000 gallons of usage. For that comparable 128 00:12:51,000 --> 00:12:57,680 rate, based again on those AWWA standards, we would go from a charge of $41.40 a month 129 00:12:57,680 --> 00:13:07,440 to $45.95. However, the average residential customer in Denton is charged $33 a month. 130 00:13:07,440 --> 00:13:13,280 They use an average of a little over 5,000 gallons of wastewater. So that increase would 131 00:13:13,280 --> 00:13:25,880 result in a $3.30 increase on their monthly water bill. We have here a removal of two 132 00:13:25,880 --> 00:13:30,620 rates and there's actually a correction that's going to be needed here. We are removing the 133 00:13:30,620 --> 00:13:39,680 dyno dirt overs. However, in a conversation this morning, it was clarified that because 134 00:13:39,680 --> 00:13:44,240 red mulch does not sell, they are going to quit selling red mulch. However, they are 135 00:13:44,240 --> 00:13:51,120 going to continue to sell black and brown mulch. So this rate will actually not be removed 136 00:13:51,120 --> 00:14:00,240 from the ordinance. We'll need to add it back in when we go to council. We are including 137 00:14:00,240 --> 00:14:06,640 water and I'm sure you saw from the redlined ordinance that we really are just changing 138 00:14:06,640 --> 00:14:12,840 the effective date for this particular rate and that's more of a technicality and really 139 00:14:12,840 --> 00:14:20,400 formally establishing those rates, particularly for customer cities. But there are no changes 140 00:14:20,400 --> 00:14:29,120 to any rates or fees for the water utility. Next steps, we'll be going to council or holding, 141 00:14:29,120 --> 00:14:35,640 I'm sorry, a public hearing on September 19th and then taking these rates and fees to council 142 00:14:35,640 --> 00:14:45,240 for adoption on the 26th. Any additional questions? 143 00:14:45,240 --> 00:14:52,200 So we should probably take each one separately. Is that correct, Marcella? 144 00:14:52,200 --> 00:14:56,000 Yes. All right. So PUB 23154, establishing rates 145 00:14:56,000 --> 00:15:00,640 and fees for the solid waste and recycling collection service. I think we need to have 146 00:15:00,640 --> 00:15:08,880 an amended motion to approve it with the changes in the $50 cut fee being added to the redlined 147 00:15:08,880 --> 00:15:15,480 ordinance. Correct. So do we have a motion to do that? 148 00:15:15,480 --> 00:15:22,640 Leave motions. Do we have a second? Devin seconds. All in favor say aye. 149 00:15:22,640 --> 00:15:27,480 Aye. All right. Next is PUB 23156, consider recommending 150 00:15:27,480 --> 00:15:33,920 the adoption of rates and fees for the wastewater service and again, this one needs to be modified 151 00:15:33,920 --> 00:15:39,600 to include the mulch for colored mulch rate. Correct. To not remove it. 152 00:15:39,600 --> 00:15:43,880 To not remove that. Do we have a motion to approve that with that change? 153 00:15:43,880 --> 00:15:47,000 Move approval. Barbara moved approval. Devin seconds. 154 00:15:47,000 --> 00:15:48,840 Second. All in favor say aye. 155 00:15:48,840 --> 00:15:54,040 Aye. Aye. Okay. PUB 23158, consider recommending 156 00:15:54,040 --> 00:15:59,600 the adoption of an ordinance for rates and fees for the water service. This one was without 157 00:15:59,600 --> 00:16:07,640 any changes. Do we have a motion? Thomas moves and do we have second? 158 00:16:07,640 --> 00:16:11,680 Devin seconds. All in favor say aye. 159 00:16:11,680 --> 00:16:15,240 Aye. Okay. Carries. Thank you very much. 160 00:16:15,240 --> 00:16:18,240 Thank you. Management reports. 161 00:16:18,240 --> 00:16:22,720 Madam Chair, members of PUB, just going to cover the feature agenda items really quick. 162 00:16:22,720 --> 00:16:29,840 We just have on here listed a wastewater master plan will be coming to you on October 9th. 163 00:16:29,840 --> 00:16:34,080 Again, as I've said before, just because there's blanks here doesn't mean we're not going to 164 00:16:34,080 --> 00:16:37,560 cover other stuff, right? But for now, this will be outlined for you. 165 00:16:37,560 --> 00:16:43,080 And then the new action, new business action matrix, we do have a couple of items that 166 00:16:43,080 --> 00:16:47,000 Barbara Russell had asked when was an update on the coal plant. I'm assuming you meant 167 00:16:47,000 --> 00:16:52,600 Gibbons Creek. We'll be putting a memo together for you on that. And then the other item I 168 00:16:52,600 --> 00:16:58,160 was talking about regarding, you know, hanging or dangling what is really telecommunication 169 00:16:58,160 --> 00:17:02,800 lines, communication lines, Jerry Fielder and our folks from public works inspection 170 00:17:02,800 --> 00:17:06,720 are working on the memo as well. So we hope to have that to you for your next meeting. 171 00:17:06,720 --> 00:17:11,240 So those are the items that we have outstanding. The winter storm urea update, we provided 172 00:17:11,240 --> 00:17:16,280 that at your last meeting. And so I'm happy to answer any questions you have or if there's 173 00:17:16,280 --> 00:17:24,000 something else you'd like to add, let us know. So I have one one item. So I think I mentioned 174 00:17:24,000 --> 00:17:33,080 this at the last PPA we approved for large commercial solar within Denton. I'd like to 175 00:17:33,080 --> 00:17:42,240 see or do we have a policy or guideline or outline of what those large commercial PPAs 176 00:17:42,240 --> 00:17:50,320 would look like? I know it's it's challenging for if a business isn't target or embassy 177 00:17:50,320 --> 00:17:58,320 suites to navigate the negotiation process to even know the amount of money they might 178 00:17:58,320 --> 00:18:04,680 be able to generate from their solar installation, which is the first step to even know if they 179 00:18:04,680 --> 00:18:12,120 can usually install commercial solar. So if we have if we have guidelines or policies 180 00:18:12,120 --> 00:18:22,040 on commercial solar, and what we would generally like expect to pay potential, you know, potential 181 00:18:22,040 --> 00:18:26,000 solar installations, or what they might what benefits they might see on charge reduction 182 00:18:26,000 --> 00:18:30,880 on their on their bills, that sort of thing. Yeah, we can put something together for you 183 00:18:30,880 --> 00:18:41,200 on that. Thank you. That's all you have, Mr. Puente? Yes, ma'am. That's it. All right. 184 00:18:41,200 --> 00:18:46,200 That brings us to concluding items. Does any board member wish to add a future item or 185 00:18:46,200 --> 00:18:56,200 have something to say to the public? I see none. So it is 919 motion to adjourn. The 186 00:18:56,200 --> 00:18:58,640 motions to adjourn or adjourn.