1
00:00:00,000 --> 00:00:04,440
 >> Okay, it's 6 o'clock.

2
00:00:04,440 --> 00:00:05,240
 Let's call the order.

3
00:00:05,240 --> 00:00:05,960
 We do have a quorum.

4
00:00:05,960 --> 00:00:12,320
 Let's call the order of the Public Utilities Board of June 24th, 2019.

5
00:00:12,320 --> 00:00:17,160
 We have a somewhat light agenda today, so we'll start with the consent agenda.

6
00:00:17,160 --> 00:00:20,600
 Do any board members wish to pull an item from the agenda?

7
00:00:20,600 --> 00:00:23,360
 >> Item B, please.

8
00:00:23,360 --> 00:00:26,760
 >> Okay, and I would like to pull item E.

9
00:00:28,240 --> 00:00:35,480
 So do we have a motion then to approve A, C, D, F, and G?

10
00:00:35,480 --> 00:00:36,960
 >> So moved.

11
00:00:36,960 --> 00:00:38,200
 >> And a second?

12
00:00:38,200 --> 00:00:39,040
 >> Second.

13
00:00:39,040 --> 00:00:40,520
 >> All in favor say aye.

14
00:00:40,520 --> 00:00:41,960
 >> Aye.

15
00:00:41,960 --> 00:00:44,200
 >> Okay, then item B.

16
00:00:44,200 --> 00:00:52,880
 >> Well, I have a few questions about, well just the way it was presented in

17
00:00:52,880 --> 00:01:01,160
 the agenda information sheet about the failed concrete recycling program,

18
00:01:01,160 --> 00:01:08,600
 which indeed it was, and then also by processing this, we're going to save some money.

19
00:01:08,600 --> 00:01:17,640
 And it seemed to me that we closed the rubble processing really because of mismanagement.

20
00:01:19,160 --> 00:01:25,200
 I think in December, maybe we learned that maybe 60% of the materials and

21
00:01:25,200 --> 00:01:34,160
 potential revenues were kind of just lost and that we closed it at a $5.3 million loss.

22
00:01:34,160 --> 00:01:37,000
 And these are just things I'm picking from past meetings and

23
00:01:37,000 --> 00:01:39,320
 the newspaper and things like that.

24
00:01:39,320 --> 00:01:45,960
 And then I looked that we're going to spend $900,000 over three years,

25
00:01:45,960 --> 00:01:49,560
 of course, to process 80,000 tons of this rubble.

26
00:01:49,560 --> 00:01:55,280
 And I was just curious, how much money would we have made just by

27
00:01:55,280 --> 00:01:58,800
 accepting 80,000 tons of rubble into the landfill?

28
00:01:58,800 --> 00:02:03,680
 >> That's a really good question and I would have to go back and calculate that.

29
00:02:03,680 --> 00:02:06,240
 But again, this is highly contaminated.

30
00:02:06,240 --> 00:02:12,920
 We are charging a much higher rate now than we would have back at that point in time.

31
00:02:12,920 --> 00:02:17,160
 So we still had to process the material, so again, from a cost-benefit standpoint,

32
00:02:17,160 --> 00:02:19,880
 we're still doing what needs to be done.

33
00:02:19,880 --> 00:02:23,360
 The concrete is in the area where our next cell is planning,

34
00:02:23,360 --> 00:02:25,920
 it is where we're going to put the next cell.

35
00:02:25,920 --> 00:02:28,560
 So we have to do something within the next three years,

36
00:02:28,560 --> 00:02:30,000
 because that's where the hole's going to be dug.

37
00:02:30,000 --> 00:02:33,040
 So that's one reason why we're having to come to you today with this.

38
00:02:33,040 --> 00:02:36,080
 >> Right, right, are they spreading it as well?

39
00:02:36,080 --> 00:02:36,600
 >> Pardon?

40
00:02:36,600 --> 00:02:38,560
 >> Are they spreading it as well?

41
00:02:38,560 --> 00:02:40,840
 Are they just processing it and leaving it-

42
00:02:40,840 --> 00:02:43,440
 >> Very near where they've processed it?

43
00:02:43,440 --> 00:02:47,480
 >> They're going to process it and move the material to an area that we have delegated

44
00:02:47,480 --> 00:02:53,800
 or designated for them to use and then over the next however long it takes us to use the piles up,

45
00:02:53,800 --> 00:02:55,960
 we will be able to use that material on site.

46
00:02:55,960 --> 00:03:00,560
 >> So do you have any kind of idea how long it's going to take to use that material?

47
00:03:00,560 --> 00:03:04,440
 >> It could take us, I mean, depending on how wet it is, where we're building roads,

48
00:03:04,440 --> 00:03:09,960
 after having to build temporary roads, it could take four, five, six, seven years or more.

49
00:03:09,960 --> 00:03:20,000
 >> Okay, so really the way this should be, the way I understand it just from what you said is this is,

50
00:03:20,000 --> 00:03:25,960
 we're still kind of bleeding on this project and we don't really know if we're saving any money or not,

51
00:03:25,960 --> 00:03:29,040
 because you don't even really know how long this material is going to last.

52
00:03:29,040 --> 00:03:35,840
 >> Well, we've stopped the bleeding in that we're not taking any more concrete from outside sources.

53
00:03:35,840 --> 00:03:38,640
 So again, what we're having to do is manage the pile that's on site.

54
00:03:38,640 --> 00:03:43,560
 We've had to do that anyway and it has to be done within the next four years

55
00:03:43,560 --> 00:03:45,560
 when we start digging the hole for the next cell.

56
00:03:45,560 --> 00:03:48,920
 >> But in the past we would have done it in kind of a business model

57
00:03:48,920 --> 00:03:52,240
 where we're recycling a product and reselling it to somebody.

58
00:03:52,240 --> 00:03:53,520
 So it's a little bit different.

59
00:03:53,520 --> 00:03:56,160
 >> It's a little bit different, but again, when you look at the sales from past,

60
00:03:56,160 --> 00:04:00,000
 there were very few sales out there and again, you've got other companies out there

61
00:04:00,000 --> 00:04:05,080
 that are selling aggregate and stone at a much less cost than what this would be.

62
00:04:05,080 --> 00:04:10,960
 So again, on the open market, again, this would have been the highest cost product out there.

63
00:04:10,960 --> 00:04:17,160
 >> Do you have any idea about how many cubic feet of space we're going to be able

64
00:04:17,160 --> 00:04:20,200
 to reclaim by removing it, by processing it?

65
00:04:20,200 --> 00:04:25,000
 I mean, that's what we're talking about, cell space, cubic yards, right, something like that?

66
00:04:25,000 --> 00:04:30,840
 >> Well, we are and right now, I mean, it's a very, very big pile that's out there right now,

67
00:04:30,840 --> 00:04:35,680
 but we're probably saving, probably, I hate to even start to guess.

68
00:04:35,680 --> 00:04:41,640
 I would have to go back and measure it, but if I was betting or estimating on this,

69
00:04:41,640 --> 00:04:44,960
 I think it's what, 80,000 yards is what we had said.

70
00:04:44,960 --> 00:04:50,560
 We take about, I have to go back and do the math on that.

71
00:04:50,560 --> 00:04:57,160
 >> There's about a ton and a half of like regular size pea gravel or something in a cubic yard.

72
00:04:57,160 --> 00:04:58,560
 >> Right.

73
00:04:58,560 --> 00:05:04,200
 >> But, I mean, isn't that, forgive the way this sounds, but isn't that our business

74
00:05:04,200 --> 00:05:07,760
 to know the space in our landfill?

75
00:05:07,760 --> 00:05:08,160
 >> It is.

76
00:05:08,160 --> 00:05:09,720
 >> It seems like we should know it really well.

77
00:05:09,720 --> 00:05:10,120
 >> It is.

78
00:05:10,120 --> 00:05:14,440
 >> Somebody should be able to say, yeah, we know exactly how the volume of this pile,

79
00:05:14,440 --> 00:05:18,760
 and it's going to be from these chunks to this size, and we know what's going on here,

80
00:05:18,760 --> 00:05:24,480
 because now we're talking about spending $300,000 a year, $10,000.

81
00:05:24,480 --> 00:05:26,560
 They're only going to be there for 30 days in a year.

82
00:05:26,560 --> 00:05:35,600
 That's $10,000 a day, and I understand that we have to do this, but it's very frustrating to me,

83
00:05:35,600 --> 00:05:40,160
 because it seems like it's being presented like, oh, this is a great deal for us

84
00:05:40,160 --> 00:05:44,200
 by spending this 900 grand, but really, you can't really,

85
00:05:44,200 --> 00:05:46,880
 you've said you can't really tell me what it's doing for us.

86
00:05:46,880 --> 00:05:49,560
 You can't tell me how much space we're going to reclaim,

87
00:05:49,560 --> 00:05:52,400
 and that is the asset in the landfill, the space.

88
00:05:52,400 --> 00:05:54,120
 >> Well, we have not lost any space.

89
00:05:54,120 --> 00:05:54,800
 >> Real quick.

90
00:05:54,800 --> 00:05:55,520
 >> Yes.

91
00:05:55,520 --> 00:05:57,160
 >> So if we --

92
00:05:57,160 --> 00:06:01,600
 >> I'm just frustrated, that's all, because this rubble stuff just keeps coming back up,

93
00:06:01,600 --> 00:06:07,840
 and this is more -- we could buy fresh gravel for this price.

94
00:06:07,840 --> 00:06:08,520
 >> You're absolutely --

95
00:06:08,520 --> 00:06:11,200
 >> We could buy brand new gravel off the market for this price.

96
00:06:11,200 --> 00:06:12,080
 >> You're absolutely correct.

97
00:06:12,080 --> 00:06:16,600
 So kind of circling back to the presentation that Brian alluded to back in December,

98
00:06:16,600 --> 00:06:20,800
 the airspace loss, if we do nothing, is about $3.3 million worth of airspace.

99
00:06:20,800 --> 00:06:26,360
 And so what's being contemplated here is processing that stockpile that's currently there,

100
00:06:26,360 --> 00:06:28,640
 trying to make something usable out of it.

101
00:06:28,640 --> 00:06:30,480
 So this is a three-year agreement.

102
00:06:30,480 --> 00:06:33,800
 There's going to be two additional years tacked onto this, and I think the total spend is going

103
00:06:33,800 --> 00:06:40,560
 to be about $1.5 million to basically burrow through and process this over a five-year period.

104
00:06:40,560 --> 00:06:42,960
 That's how much stockpile we have on there.

105
00:06:42,960 --> 00:06:44,280
 So you're absolutely correct.

106
00:06:44,280 --> 00:06:49,160
 It probably would be more economical for us to go out and purchase the gravel or the millings

107
00:06:49,160 --> 00:06:51,000
 that we need for our operation.

108
00:06:51,000 --> 00:06:54,120
 However, we'd be losing that airspace if we took that approach.

109
00:06:54,120 --> 00:06:58,560
 So this is probably kind of making the best of a bad situation, if you will.

110
00:06:58,560 --> 00:06:59,000
 >> Okay.

111
00:06:59,000 --> 00:06:59,840
 >> Does that answer your question?

112
00:06:59,840 --> 00:07:02,320
 >> Did you say $3.3 million is the value of the airspace?

113
00:07:02,320 --> 00:07:06,440
 >> $3.3 million, yes, if we were to just bury it and not process it.

114
00:07:06,440 --> 00:07:07,280
 >> Okay.

115
00:07:07,280 --> 00:07:11,040
 >> I have one more question about the big bed tabulation sheet.

116
00:07:11,040 --> 00:07:15,640
 And it says -- Kenny, do you have it in front of you?

117
00:07:15,640 --> 00:07:16,400
 >> I do not.

118
00:07:16,400 --> 00:07:19,000
 >> Okay. Well, you know, it lists the three.

119
00:07:19,000 --> 00:07:21,360
 different companies that bid.

120
00:07:21,360 --> 00:07:27,120
 And then it says estimated annual quantity, 40,000 tons.

121
00:07:27,120 --> 00:07:30,480
 But then it says it's going to last for three years.

122
00:07:30,480 --> 00:07:33,200
 Well, that's 120,000 tons.

123
00:07:33,200 --> 00:07:37,120
 And it says that we're going to process 80,000 tons.

124
00:07:37,120 --> 00:07:41,400
 And then -- so that's confusing to me because that's a whole third difference.

125
00:07:41,400 --> 00:07:47,520
 And then in the bid -- in the monies, the only one that has the years multiplied

126
00:07:47,520 --> 00:07:50,200
 out is the big city-crush concrete.

127
00:07:50,200 --> 00:07:55,800
 And I wonder if we did that or if they had the opportunity to know that we were going

128
00:07:55,800 --> 00:08:01,080
 to actually process 80,000 to 120,000 tons instead of 40,000.

129
00:08:01,080 --> 00:08:03,520
 Because we might have gotten a better price.

130
00:08:03,520 --> 00:08:09,720
 >> All the companies that bid attended a pre-bid meeting and all these questions were answered

131
00:08:09,720 --> 00:08:10,760
 and they did know that.

132
00:08:10,760 --> 00:08:12,160
 >> Okay. Thank you.

133
00:08:12,160 --> 00:08:13,280
 I move approval.

134
00:08:13,280 --> 00:08:15,920
 >> Do we have a second?

135
00:08:15,920 --> 00:08:16,800
 >> Second.

136
00:08:16,800 --> 00:08:18,120
 >> All in favor say aye.

137
00:08:18,120 --> 00:08:18,440
 >> Aye.

138
00:08:18,440 --> 00:08:24,280
 >> Okay. Item E, I was just confused.

139
00:08:24,280 --> 00:08:27,880
 I couldn't get all the dates figured out in my head.

140
00:08:27,880 --> 00:08:28,320
 >> Sure.

141
00:08:28,320 --> 00:08:31,080
 >> So we missed a date, I take it.

142
00:08:31,080 --> 00:08:31,840
 >> That is correct.

143
00:08:31,840 --> 00:08:34,880
 I'm Frank Pugsley, Water Utilities Director.

144
00:08:34,880 --> 00:08:39,200
 We have a couple of quick slides up here, just background on this issue.

145
00:08:39,200 --> 00:08:44,280
 As you all are aware, we approved updated impact fees earlier this year by ordinance.

146
00:08:44,280 --> 00:08:50,080
 And we also have a wholesale wastewater treatment agreement with the City of Crum from 2002.

147
00:08:50,080 --> 00:08:55,240
 In that agreement, we're required to provide them the assumptions, capital improvement plan

148
00:08:55,240 --> 00:08:58,920
 and impact fee plan at least 30 days prior to any public hearing.

149
00:08:58,920 --> 00:09:00,840
 That was not done.

150
00:09:00,840 --> 00:09:05,160
 After the impact fees were approved, a letter was sent to Crum informing them

151
00:09:05,160 --> 00:09:11,320
 of the updated impact fees and prior to that, they had no knowledge of the change

152
00:09:11,320 --> 00:09:16,360
 and they were going along in their planning process with a developer to plot some home sites

153
00:09:16,360 --> 00:09:20,440
 and they had communicated to that developer the old impact fee.

154
00:09:20,440 --> 00:09:23,440
 And since we didn't meet our contract obligations, we're requesting

155
00:09:23,440 --> 00:09:28,400
 to basically post date the impact fee effective date for the City of Crum.

156
00:09:28,400 --> 00:09:33,320
 And after that date, then all the new plots will be subject to the new impact fee.

157
00:09:33,320 --> 00:09:36,440
 But it's this one subset of plots that they're most concerned

158
00:09:36,440 --> 00:09:38,760
 with so they can continue on with that development.

159
00:09:38,760 --> 00:09:42,400
 >> Okay. All right. That's all I really needed to know.

160
00:09:42,400 --> 00:09:43,320
 >> Okay.

161
00:09:43,320 --> 00:09:44,160
 >> It makes sense.

162
00:09:44,160 --> 00:09:47,120
 It seems like it's a good compromise for a mistake.

163
00:09:47,120 --> 00:09:49,280
 >> Yeah. We made a mistake and we're trying to be good neighbors.

164
00:09:49,280 --> 00:09:51,000
 >> Yeah. Okay.

165
00:09:51,000 --> 00:09:53,040
 I will move approval.

166
00:09:53,040 --> 00:09:54,360
 >> Second.

167
00:09:54,360 --> 00:09:55,680
 >> All in favor say aye.

168
00:09:55,680 --> 00:09:55,920
 >> Aye.

169
00:09:55,920 --> 00:09:57,480
 >> Aye.

170
00:09:57,480 --> 00:09:57,960
 >> All right.

171
00:09:57,960 --> 00:10:05,200
 The next item is consider approval of the public utility board's minutes of June 10th, 2019.

172
00:10:05,200 --> 00:10:12,440
 I did see that Krista's name was not spelled correctly in the first sentence or two.

173
00:10:12,440 --> 00:10:18,360
 So with that change, are there any other changes that anyone's noted?

174
00:10:18,360 --> 00:10:21,560
 So with that change, those stand as approved?

175
00:10:21,560 --> 00:10:24,520
 With that change, it's approved.

176
00:10:24,520 --> 00:10:26,320
 Okay. ACM update.

177
00:10:26,320 --> 00:10:30,680
 >> How quickly can we go?

178
00:10:30,680 --> 00:10:33,800
 >> Well, I already lost.

179
00:10:33,800 --> 00:10:39,200
 >> Well, in your packet, you'll see the quarterly financial report ending at the end of March.

180
00:10:39,200 --> 00:10:44,320
 If you have any specific questions, David Gaines, finance director is here to answer those.

181
00:10:44,320 --> 00:10:50,120
 Again, as far as your upcoming future agenda items for in your packet again,

182
00:10:50,120 --> 00:10:56,520
 we've got a number of budget items coming forward to you all over the next few weeks throughout the summer.

183
00:10:56,520 --> 00:10:59,680
 And with that, I'll answer any questions that you may have.

184
00:10:59,680 --> 00:11:04,720
 However, if you have any questions of Mr. Gaines, he's here to answer those questions as well.

185
00:11:04,720 --> 00:11:08,920
 >> I think I need some digesting time on the financial thing.

186
00:11:08,920 --> 00:11:11,840
 We might come back to that later.

187
00:11:11,840 --> 00:11:13,960
 >> Sure. >> It's kind of dense.

188
00:11:13,960 --> 00:11:19,360
 >> Would you like for us to bring it back in the next meeting?

189
00:11:19,360 --> 00:11:22,400
 >> Do you want a financial presentation or you just want to be able to ask questions?

190
00:11:22,400 --> 00:11:24,240
 >> I just want to be able to ask questions.

191
00:11:24,240 --> 00:11:24,800
 >> Okay.

192
00:11:24,800 --> 00:11:26,640
 >> So we can just leave it as an ACM update?

193
00:11:26,640 --> 00:11:27,440
 >> Yeah, yeah.

194
00:11:27,440 --> 00:11:29,200
 >> Okay, we can do that.

195
00:11:29,200 --> 00:11:34,240
 >> I was trying to figure out the recycling numbers, the ton and the income and the expense.

196
00:11:34,240 --> 00:11:34,880
 >> Okay.

197
00:11:34,880 --> 00:11:37,880
 >> It doesn't make any sense up here, so.

198
00:11:37,880 --> 00:11:44,120
 >> And I was looking at the water revenues, I'm assuming the rather wet year is impacting the--

199
00:11:44,120 --> 00:11:44,560
 >> It is.

200
00:11:44,560 --> 00:11:47,400
 >> Yeah, the lack of me paying you a big bill is--

201
00:11:47,400 --> 00:11:49,480
 >> Yeah, and it's problematic across the region for--

202
00:11:49,480 --> 00:11:52,440
 >> Yeah, yeah, it is, okay.

203
00:11:52,440 --> 00:11:54,160
 All right.

204
00:11:54,160 --> 00:11:59,120
 So concluding items then, is there any items that a board member wishes to have on?

205
00:11:59,120 --> 00:12:01,280
 A future agenda.

206
00:12:01,280 --> 00:12:05,920
 >> I have a couple of items.

207
00:12:05,920 --> 00:12:12,600
 One thing is more of the-- just talk about something that happened like I read

208
00:12:12,600 --> 00:12:17,840
 about the ballet collection services that the city council approved for some areas

209
00:12:17,840 --> 00:12:22,880
 over on industrial and I don't think that ever came before us and I like it when that stuff,

210
00:12:22,880 --> 00:12:28,200
 you know, has an opportunity to come before us just because I like to hear about it, you know.

211
00:12:28,200 --> 00:12:33,600
 And so that was just one thing and then we were getting--

212
00:12:33,600 --> 00:12:38,920
 we got one didn't energy center report and then we haven't gotten anymore

213
00:12:38,920 --> 00:12:42,160
 and there's actually been two quarters that have passed and I wondered

214
00:12:42,160 --> 00:12:44,960
 if maybe we could pick back on that.

215
00:12:44,960 --> 00:12:48,800
 It might be just because George's move, you know, we had some leadership changes

216
00:12:48,800 --> 00:12:50,120
 so it's possible that that happens.

217
00:12:50,120 --> 00:12:51,400
 I just like to do that again.

218
00:12:51,400 --> 00:12:53,600
 And then one more item.

219
00:12:53,600 --> 00:12:58,720
 So, I see on Facebook and this app, you know, next door or something like that,

220
00:12:58,720 --> 00:13:06,960
 I think it's called right, I see the recycling coordinator, her name is Misty Adams,

221
00:13:06,960 --> 00:13:10,260
 the residential recycling education coordinator.

222
00:13:10,260 --> 00:13:15,360
 She posts things all the time and a lot of them are pretty cool and I just thought it might be nice

223
00:13:15,360 --> 00:13:19,840
 if she could come here maybe and show us what her, you know, like what she's going to do

224
00:13:19,840 --> 00:13:24,080
 in the future, maybe a work session kind of situation where she could just show us what she's going

225
00:13:24,080 --> 00:13:26,000
 to do and that way we'll feel like we're in the know even

226
00:13:26,000 --> 00:13:29,720
 if we miss something in this environment, you know.

227
00:13:29,720 --> 00:13:32,080
 That's all I've got.

228
00:13:32,080 --> 00:13:35,560
 >> Any other board members?

229
00:13:35,560 --> 00:13:39,000
 Okay. So, do we have a motion to adjourn?

230
00:13:39,000 --> 00:13:40,560
 >> I move we adjourn.

231
00:13:40,560 --> 00:13:41,920
 >> Brenda moves the adjournment.

232
00:13:41,920 --> 00:13:43,440
 Second?

233
00:13:43,440 --> 00:13:44,200
 >> Second.

234
00:13:44,200 --> 00:13:45,160
 >> All in favor, aye?

235
00:13:45,160 --> 00:13:46,160
 >> Aye.

236
00:13:46,160 --> 00:13:47,000
 >> All right.

237
00:13:47,000 --> 00:13:49,520
 >> 614, didn't set a record this time.