WEBVTT 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 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 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 00:00:19.760 --> 00:00:24.840 who wishes to speak? Okay. I see none. We'll move on to items for 00:00:24.840 --> 00:00:30.240 individual consideration. The first item is considered approval of the August 14, 2023 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? 00:00:37.080 --> 00:00:40.760 Thomas moves. And Barbara seconds. All in favor say aye. 00:00:40.760 --> 00:00:41.760 >> Aye. 00:00:41.760 --> 00:00:48.080 >> Aye. Carries. Next item is consider recommending the adoption of an ordinance for the wood 00:00:48.080 --> 00:01:06.800 utility poles in the amount of $8,250,000. >> Good morning, members of the PB. Randy 00:01:06.800 --> 00:01:12.920 Key, electric engineering supervisor at DME. All right. Bringing forward a contract for 00:01:12.920 --> 00:01:21.600 wood utility poles. Wood utility poles are used by DME for existing pole replacements 00:01:21.600 --> 00:01:27.080 and new installations. These poles will be stored and managed at the DME campus on Spencer 00:01:27.080 --> 00:01:35.280 Drive. The current wood utility pole contract, 6813, is expiring. The NT for this contract 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 00:01:45.240 --> 00:01:52.480 contract for 8252 is calculated using historical usage. The priority pole replacement project 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 00:01:58.920 --> 00:02:03.880 that prices for wood poles have increased by 80% and the lead times have increased by 00:02:03.880 --> 00:02:08.200 nine months. >> Wow. 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 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 00:02:24.720 --> 00:02:28.120 questions. >> I see Barbara's going to ask a question. 00:02:28.120 --> 00:02:31.440 >> Yes, ma'am. >> Yeah. Why do you think we only have one 00:02:31.440 --> 00:02:35.240 person that responds after all the requests you send out? 00:02:35.240 --> 00:02:41.960 >> That's a great question. So Stella Jones bought up all of the materials to manufacture 00:02:41.960 --> 00:02:46.400 the creosote. >> Oh. Pretty clever. 00:02:46.400 --> 00:02:54.320 >> Very clever. >> Have you considered using -- I know there's 00:02:54.320 --> 00:02:59.080 a price difference, but what in concrete or metal poles and -- 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. 00:03:04.440 --> 00:03:14.300 It's a much smaller percentage. Concrete poles is much more difficult to construct. And pricing 00:03:14.300 --> 00:03:21.640 wise it is much more expensive for both. >> Even over the lifetime that they would last? 00:03:21.640 --> 00:03:26.500 >> Steel poles, yes. And concrete, it's much more expensive to construct. We currently 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. 00:03:31.560 --> 00:03:34.660 >> Okay. Thank you. >> You're welcome. 00:03:34.660 --> 00:03:39.340 >> Other questions? >> Move approval. 00:03:39.340 --> 00:03:41.700 >> Thank you, Barbara. Do we have a second? >> Second. 00:03:41.700 --> 00:03:44.640 >> Okay. Devin second. All in favor say aye. 00:03:44.640 --> 00:03:48.280 >> Aye. >> Motion carries. Thank you, Randy. 00:03:48.280 --> 00:03:50.800 >> Thank you very much. >> The next item is consider recommending 00:03:50.800 --> 00:03:57.440 the adoption of rates and fees for the solid waste and recycling collection service. 00:03:57.440 --> 00:04:08.660 >> Good morning. Amy Caslik, interim finance director. I'm here today to receive your recommendation 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 00:04:13.840 --> 00:04:22.120 this item as well as the next two. Would you like to -- yes. Go ahead, Lee. 00:04:22.120 --> 00:04:24.640 >> Sure. >> Better? 00:04:24.640 --> 00:04:32.160 >> Better. >> Will you go ahead and call the next two 00:04:32.160 --> 00:04:34.880 items? >> Oh, thank you. Since it's on all of them, 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 00:04:42.060 --> 00:04:50.160 service. And item PUB 23158, consider rates and fees for water and waste water service. 00:04:50.160 --> 00:04:54.000 >> Thank you. >> Thank you, Mo Salo. 00:04:54.000 --> 00:05:01.400 >> Okay. A rate increase is not included for solid waste and recycling for fiscal year 2024. 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 00:05:07.920 --> 00:05:13.200 the results of that study will be brought forward at a later date. You do, however, 00:05:13.200 --> 00:05:19.360 see the rate history for this service including significant rate reductions over the last 00:05:19.360 --> 00:05:28.700 several years. While there are no proposed rate increases, we are including a proposal 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 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 00:05:44.400 --> 00:05:50.120 apply for each additional cart. There's also some proposed changes to the language in the 00:05:50.120 --> 00:05:58.440 rate ordinance related to bulky waste. And it provides that waste in excess of four cubic 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. 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 00:06:12.400 --> 00:06:19.280 per bag. And finally, the ordinance specifies that dishwashers for the purpose of this ordinance 00:06:19.280 --> 00:06:24.880 are not considered appliances or electronics. >> Mr. Rybeck has a question. 00:06:24.880 --> 00:06:28.600 >> Yes. >> Thank you. Why are dishwashers excluded 00:06:28.600 --> 00:06:34.080 from appliances? >> Going to let Director Brian Boehner answer 00:06:34.080 --> 00:06:37.760 that for you. >> Thank you. 00:06:37.760 --> 00:06:43.640 >> Good morning. Brian Boehner, city of Denton. It has come to our attention and based on 00:06:43.640 --> 00:06:48.800 the feedback from our metal recycler, there is too much plastic in a dishwasher these 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 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 00:06:58.800 --> 00:07:06.100 the landfill. >> Interesting. Thank you. 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 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 00:07:18.360 --> 00:07:20.040 related to -- >> Excuse me. 00:07:20.040 --> 00:07:25.480 >> Yes. I'm sorry. Yes. >> One other question. The cart change, this 00:07:25.480 --> 00:07:31.780 is a customer requests a different cart, like a larger cart or a smaller cart? 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 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 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 00:07:44.200 --> 00:07:50.120 opportunity to ensure we have the appropriate effort to make that next day's service available. 00:07:50.120 --> 00:07:57.480 >> Okay. So like urgent cart. >> Correct. For whatever urgent cart change 00:07:57.480 --> 00:07:59.360 out, emergency may occur. >> Yes, sir. 00:07:59.360 --> 00:08:04.080 >> Is this the recycling cart, is that a one-time fee or a monthly add? 00:08:04.080 --> 00:08:11.440 >> No, that is a one-time fee. >> Very good. Thank you. 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. 00:08:14.840 --> 00:08:21.840 I apologize. We are proposing increases in each of these rates related to grass, brush 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. 00:08:31.600 --> 00:08:39.440 >> I apologize. The $15 fee for the recycle cart is actually for additional carts. So 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 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 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 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 00:08:59.880 --> 00:09:05.200 not a single charge for the delivery of the extra cart. It's a monthly charge. 00:09:05.200 --> 00:09:07.200 >> It is a monthly charge. >> For keeping the cart. 00:09:07.200 --> 00:09:10.200 >> Correct. The additional cart. >> The $15 cart. 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 00:09:16.920 --> 00:09:19.680 with it, then you can send it back. >> Correct. 00:09:19.680 --> 00:09:22.640 >> Okay. Thank you. >> Or you could bring that material out to 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 00:09:28.640 --> 00:09:39.440 there. >> Yes, sir. 00:09:39.440 --> 00:09:45.720 >> We do have a couple of fee removals, and that is removing the fee for contaminated 00:09:45.720 --> 00:09:51.240 yard waste, old trees and stumps, which are not collected at the landfill, as well as 00:09:51.240 --> 00:09:56.880 concrete actually is then used to offset costs within the landfill. 00:09:56.880 --> 00:10:05.720 Anything? Yes. >> A lot of people are using crushed concrete 00:10:05.720 --> 00:10:15.400 for various things. Have we are we doing any of that? 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 00:10:21.480 --> 00:10:25.200 for us to manage that material. And besides, there's three or four contractors out there 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. 00:10:31.240 --> 00:10:43.360 >> One more question. Don't sit down. >> My question is, you said commercial contractors, 00:10:43.360 --> 00:10:47.200 so do you mean commercial in the sense that they are only gathering those materials from 00:10:47.200 --> 00:10:52.640 commercial sites or are these contractors also available to pick up at homes that are 00:10:52.640 --> 00:10:55.680 doing major yard renovations? >> Most of the time, if you're doing major 00:10:55.680 --> 00:11:00.520 home renovation, major renovation at your home, you've got a contractor, they're going 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 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 00:11:11.280 --> 00:11:18.600 about is the large slabs of concrete that it just becomes impossible for us to manage. 00:11:18.600 --> 00:11:22.240 It breaks our equipment, things of that nature. >> I understand the concrete. I was thinking 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. 00:11:28.120 --> 00:11:40.720 >> Correct. Okay. Thank you. >> So next we're going to look at the wastewater 00:11:40.720 --> 00:11:47.520 proposed rates. So it includes an 11% increase across all customer classes for facility and 00:11:47.520 --> 00:11:55.260 usage charges. You'll see that in this rate history, the rate has remained unchanged since 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 00:12:02.920 --> 00:12:10.440 our discussions about the wastewater budget in our last meeting that there are significant 00:12:10.440 --> 00:12:18.320 capital investments needed not only for growth but also just to maintain existing infrastructure. 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 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 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 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 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 00:12:57.680 --> 00:13:07.440 to $45.95. However, the average residential customer in Denton is charged $33 a month. 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 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 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 00:13:30.620 --> 00:13:39.680 dyno dirt overs. However, in a conversation this morning, it was clarified that because 00:13:39.680 --> 00:13:44.240 red mulch does not sell, they are going to quit selling red mulch. However, they are 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 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 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 00:14:06.640 --> 00:14:12.840 the effective date for this particular rate and that's more of a technicality and really 00:14:12.840 --> 00:14:20.400 formally establishing those rates, particularly for customer cities. But there are no changes 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, 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 00:14:35.640 --> 00:14:45.240 for adoption on the 26th. Any additional questions? 00:14:45.240 --> 00:14:52.200 So we should probably take each one separately. Is that correct, Marcella? 00:14:52.200 --> 00:14:56.000 Yes. All right. So PUB 23154, establishing rates 00:14:56.000 --> 00:15:00.640 and fees for the solid waste and recycling collection service. I think we need to have 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 00:15:08.880 --> 00:15:15.480 ordinance. Correct. So do we have a motion to do that? 00:15:15.480 --> 00:15:22.640 Leave motions. Do we have a second? Devin seconds. All in favor say aye. 00:15:22.640 --> 00:15:27.480 Aye. All right. Next is PUB 23156, consider recommending 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 00:15:33.920 --> 00:15:39.600 to include the mulch for colored mulch rate. Correct. To not remove it. 00:15:39.600 --> 00:15:43.880 To not remove that. Do we have a motion to approve that with that change? 00:15:43.880 --> 00:15:47.000 Move approval. Barbara moved approval. Devin seconds. 00:15:47.000 --> 00:15:48.840 Second. All in favor say aye. 00:15:48.840 --> 00:15:54.040 Aye. Aye. Okay. PUB 23158, consider recommending 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 00:15:59.600 --> 00:16:07.640 any changes. Do we have a motion? Thomas moves and do we have second? 00:16:07.640 --> 00:16:11.680 Devin seconds. All in favor say aye. 00:16:11.680 --> 00:16:15.240 Aye. Okay. Carries. Thank you very much. 00:16:15.240 --> 00:16:18.240 Thank you. Management reports. 00:16:18.240 --> 00:16:22.720 Madam Chair, members of PUB, just going to cover the feature agenda items really quick. 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. 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 00:16:34.080 --> 00:16:37.560 cover other stuff, right? But for now, this will be outlined for you. 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 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 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 00:16:52.600 --> 00:16:58.160 was talking about regarding, you know, hanging or dangling what is really telecommunication 00:16:58.160 --> 00:17:02.800 lines, communication lines, Jerry Fielder and our folks from public works inspection 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. 00:17:06.720 --> 00:17:11.240 So those are the items that we have outstanding. The winter storm urea update, we provided 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 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 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 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 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 00:17:50.320 --> 00:17:58.320 suites to navigate the negotiation process to even know the amount of money they might 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 00:18:04.680 --> 00:18:12.120 can usually install commercial solar. So if we have if we have guidelines or policies 00:18:12.120 --> 00:18:22.040 on commercial solar, and what we would generally like expect to pay potential, you know, potential 00:18:22.040 --> 00:18:26.000 solar installations, or what they might what benefits they might see on charge reduction 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 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. 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 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 00:18:56.200 --> 00:18:58.640 motions to adjourn or adjourn.