WEBVTT 00:00:00.000 --> 00:00:04.440 >> Okay, it's 6 o'clock. 00:00:04.440 --> 00:00:05.240 Let's call the order. 00:00:05.240 --> 00:00:05.960 We do have a quorum. 00:00:05.960 --> 00:00:12.320 Let's call the order of the Public Utilities Board of June 24th, 2019. 00:00:12.320 --> 00:00:17.160 We have a somewhat light agenda today, so we'll start with the consent agenda. 00:00:17.160 --> 00:00:20.600 Do any board members wish to pull an item from the agenda? 00:00:20.600 --> 00:00:23.360 >> Item B, please. 00:00:23.360 --> 00:00:26.760 >> Okay, and I would like to pull item E. 00:00:28.240 --> 00:00:35.480 So do we have a motion then to approve A, C, D, F, and G? 00:00:35.480 --> 00:00:36.960 >> So moved. 00:00:36.960 --> 00:00:38.200 >> And a second? 00:00:38.200 --> 00:00:39.040 >> Second. 00:00:39.040 --> 00:00:40.520 >> All in favor say aye. 00:00:40.520 --> 00:00:41.960 >> Aye. 00:00:41.960 --> 00:00:44.200 >> Okay, then item B. 00:00:44.200 --> 00:00:52.880 >> Well, I have a few questions about, well just the way it was presented in 00:00:52.880 --> 00:01:01.160 the agenda information sheet about the failed concrete recycling program, 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. 00:01:08.600 --> 00:01:17.640 And it seemed to me that we closed the rubble processing really because of mismanagement. 00:01:19.160 --> 00:01:25.200 I think in December, maybe we learned that maybe 60% of the materials and 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. 00:01:34.160 --> 00:01:37.000 And these are just things I'm picking from past meetings and 00:01:37.000 --> 00:01:39.320 the newspaper and things like that. 00:01:39.320 --> 00:01:45.960 And then I looked that we're going to spend $900,000 over three years, 00:01:45.960 --> 00:01:49.560 of course, to process 80,000 tons of this rubble. 00:01:49.560 --> 00:01:55.280 And I was just curious, how much money would we have made just by 00:01:55.280 --> 00:01:58.800 accepting 80,000 tons of rubble into the landfill? 00:01:58.800 --> 00:02:03.680 >> That's a really good question and I would have to go back and calculate that. 00:02:03.680 --> 00:02:06.240 But again, this is highly contaminated. 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. 00:02:12.920 --> 00:02:17.160 So we still had to process the material, so again, from a cost-benefit standpoint, 00:02:17.160 --> 00:02:19.880 we're still doing what needs to be done. 00:02:19.880 --> 00:02:23.360 The concrete is in the area where our next cell is planning, 00:02:23.360 --> 00:02:25.920 it is where we're going to put the next cell. 00:02:25.920 --> 00:02:28.560 So we have to do something within the next three years, 00:02:28.560 --> 00:02:30.000 because that's where the hole's going to be dug. 00:02:30.000 --> 00:02:33.040 So that's one reason why we're having to come to you today with this. 00:02:33.040 --> 00:02:36.080 >> Right, right, are they spreading it as well? 00:02:36.080 --> 00:02:36.600 >> Pardon? 00:02:36.600 --> 00:02:38.560 >> Are they spreading it as well? 00:02:38.560 --> 00:02:40.840 Are they just processing it and leaving it- 00:02:40.840 --> 00:02:43.440 >> Very near where they've processed it? 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 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, 00:02:53.800 --> 00:02:55.960 we will be able to use that material on site. 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? 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, 00:03:04.440 --> 00:03:09.960 after having to build temporary roads, it could take four, five, six, seven years or more. 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, 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, 00:03:25.960 --> 00:03:29.040 because you don't even really know how long this material is going to last. 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. 00:03:35.840 --> 00:03:38.640 So again, what we're having to do is manage the pile that's on site. 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 00:03:43.560 --> 00:03:45.560 when we start digging the hole for the next cell. 00:03:45.560 --> 00:03:48.920 >> But in the past we would have done it in kind of a business model 00:03:48.920 --> 00:03:52.240 where we're recycling a product and reselling it to somebody. 00:03:52.240 --> 00:03:53.520 So it's a little bit different. 00:03:53.520 --> 00:03:56.160 >> It's a little bit different, but again, when you look at the sales from past, 00:03:56.160 --> 00:04:00.000 there were very few sales out there and again, you've got other companies out there 00:04:00.000 --> 00:04:05.080 that are selling aggregate and stone at a much less cost than what this would be. 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. 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 00:04:17.160 --> 00:04:20.200 to reclaim by removing it, by processing it? 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? 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, 00:04:30.840 --> 00:04:35.680 but we're probably saving, probably, I hate to even start to guess. 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, 00:04:41.640 --> 00:04:44.960 I think it's what, 80,000 yards is what we had said. 00:04:44.960 --> 00:04:50.560 We take about, I have to go back and do the math on that. 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. 00:04:57.160 --> 00:04:58.560 >> Right. 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 00:05:04.200 --> 00:05:07.760 to know the space in our landfill? 00:05:07.760 --> 00:05:08.160 >> It is. 00:05:08.160 --> 00:05:09.720 >> It seems like we should know it really well. 00:05:09.720 --> 00:05:10.120 >> It is. 00:05:10.120 --> 00:05:14.440 >> Somebody should be able to say, yeah, we know exactly how the volume of this pile, 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, 00:05:18.760 --> 00:05:24.480 because now we're talking about spending $300,000 a year, $10,000. 00:05:24.480 --> 00:05:26.560 They're only going to be there for 30 days in a year. 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, 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 00:05:40.160 --> 00:05:44.200 by spending this 900 grand, but really, you can't really, 00:05:44.200 --> 00:05:46.880 you've said you can't really tell me what it's doing for us. 00:05:46.880 --> 00:05:49.560 You can't tell me how much space we're going to reclaim, 00:05:49.560 --> 00:05:52.400 and that is the asset in the landfill, the space. 00:05:52.400 --> 00:05:54.120 >> Well, we have not lost any space. 00:05:54.120 --> 00:05:54.800 >> Real quick. 00:05:54.800 --> 00:05:55.520 >> Yes. 00:05:55.520 --> 00:05:57.160 >> So if we -- 00:05:57.160 --> 00:06:01.600 >> I'm just frustrated, that's all, because this rubble stuff just keeps coming back up, 00:06:01.600 --> 00:06:07.840 and this is more -- we could buy fresh gravel for this price. 00:06:07.840 --> 00:06:08.520 >> You're absolutely -- 00:06:08.520 --> 00:06:11.200 >> We could buy brand new gravel off the market for this price. 00:06:11.200 --> 00:06:12.080 >> You're absolutely correct. 00:06:12.080 --> 00:06:16.600 So kind of circling back to the presentation that Brian alluded to back in December, 00:06:16.600 --> 00:06:20.800 the airspace loss, if we do nothing, is about $3.3 million worth of airspace. 00:06:20.800 --> 00:06:26.360 And so what's being contemplated here is processing that stockpile that's currently there, 00:06:26.360 --> 00:06:28.640 trying to make something usable out of it. 00:06:28.640 --> 00:06:30.480 So this is a three-year agreement. 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 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. 00:06:40.560 --> 00:06:42.960 That's how much stockpile we have on there. 00:06:42.960 --> 00:06:44.280 So you're absolutely correct. 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 00:06:49.160 --> 00:06:51.000 that we need for our operation. 00:06:51.000 --> 00:06:54.120 However, we'd be losing that airspace if we took that approach. 00:06:54.120 --> 00:06:58.560 So this is probably kind of making the best of a bad situation, if you will. 00:06:58.560 --> 00:06:59.000 >> Okay. 00:06:59.000 --> 00:06:59.840 >> Does that answer your question? 00:06:59.840 --> 00:07:02.320 >> Did you say $3.3 million is the value of the airspace? 00:07:02.320 --> 00:07:06.440 >> $3.3 million, yes, if we were to just bury it and not process it. 00:07:06.440 --> 00:07:07.280 >> Okay. 00:07:07.280 --> 00:07:11.040 >> I have one more question about the big bed tabulation sheet. 00:07:11.040 --> 00:07:15.640 And it says -- Kenny, do you have it in front of you? 00:07:15.640 --> 00:07:16.400 >> I do not. 00:07:16.400 --> 00:07:19.000 >> Okay. Well, you know, it lists the three. 00:07:19.000 --> 00:07:21.360 different companies that bid. 00:07:21.360 --> 00:07:27.120 And then it says estimated annual quantity, 40,000 tons. 00:07:27.120 --> 00:07:30.480 But then it says it's going to last for three years. 00:07:30.480 --> 00:07:33.200 Well, that's 120,000 tons. 00:07:33.200 --> 00:07:37.120 And it says that we're going to process 80,000 tons. 00:07:37.120 --> 00:07:41.400 And then -- so that's confusing to me because that's a whole third difference. 00:07:41.400 --> 00:07:47.520 And then in the bid -- in the monies, the only one that has the years multiplied 00:07:47.520 --> 00:07:50.200 out is the big city-crush concrete. 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 00:07:55.800 --> 00:08:01.080 to actually process 80,000 to 120,000 tons instead of 40,000. 00:08:01.080 --> 00:08:03.520 Because we might have gotten a better price. 00:08:03.520 --> 00:08:09.720 >> All the companies that bid attended a pre-bid meeting and all these questions were answered 00:08:09.720 --> 00:08:10.760 and they did know that. 00:08:10.760 --> 00:08:12.160 >> Okay. Thank you. 00:08:12.160 --> 00:08:13.280 I move approval. 00:08:13.280 --> 00:08:15.920 >> Do we have a second? 00:08:15.920 --> 00:08:16.800 >> Second. 00:08:16.800 --> 00:08:18.120 >> All in favor say aye. 00:08:18.120 --> 00:08:18.440 >> Aye. 00:08:18.440 --> 00:08:24.280 >> Okay. Item E, I was just confused. 00:08:24.280 --> 00:08:27.880 I couldn't get all the dates figured out in my head. 00:08:27.880 --> 00:08:28.320 >> Sure. 00:08:28.320 --> 00:08:31.080 >> So we missed a date, I take it. 00:08:31.080 --> 00:08:31.840 >> That is correct. 00:08:31.840 --> 00:08:34.880 I'm Frank Pugsley, Water Utilities Director. 00:08:34.880 --> 00:08:39.200 We have a couple of quick slides up here, just background on this issue. 00:08:39.200 --> 00:08:44.280 As you all are aware, we approved updated impact fees earlier this year by ordinance. 00:08:44.280 --> 00:08:50.080 And we also have a wholesale wastewater treatment agreement with the City of Crum from 2002. 00:08:50.080 --> 00:08:55.240 In that agreement, we're required to provide them the assumptions, capital improvement plan 00:08:55.240 --> 00:08:58.920 and impact fee plan at least 30 days prior to any public hearing. 00:08:58.920 --> 00:09:00.840 That was not done. 00:09:00.840 --> 00:09:05.160 After the impact fees were approved, a letter was sent to Crum informing them 00:09:05.160 --> 00:09:11.320 of the updated impact fees and prior to that, they had no knowledge of the change 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 00:09:16.360 --> 00:09:20.440 and they had communicated to that developer the old impact fee. 00:09:20.440 --> 00:09:23.440 And since we didn't meet our contract obligations, we're requesting 00:09:23.440 --> 00:09:28.400 to basically post date the impact fee effective date for the City of Crum. 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. 00:09:33.320 --> 00:09:36.440 But it's this one subset of plots that they're most concerned 00:09:36.440 --> 00:09:38.760 with so they can continue on with that development. 00:09:38.760 --> 00:09:42.400 >> Okay. All right. That's all I really needed to know. 00:09:42.400 --> 00:09:43.320 >> Okay. 00:09:43.320 --> 00:09:44.160 >> It makes sense. 00:09:44.160 --> 00:09:47.120 It seems like it's a good compromise for a mistake. 00:09:47.120 --> 00:09:49.280 >> Yeah. We made a mistake and we're trying to be good neighbors. 00:09:49.280 --> 00:09:51.000 >> Yeah. Okay. 00:09:51.000 --> 00:09:53.040 I will move approval. 00:09:53.040 --> 00:09:54.360 >> Second. 00:09:54.360 --> 00:09:55.680 >> All in favor say aye. 00:09:55.680 --> 00:09:55.920 >> Aye. 00:09:55.920 --> 00:09:57.480 >> Aye. 00:09:57.480 --> 00:09:57.960 >> All right. 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. 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. 00:10:12.440 --> 00:10:18.360 So with that change, are there any other changes that anyone's noted? 00:10:18.360 --> 00:10:21.560 So with that change, those stand as approved? 00:10:21.560 --> 00:10:24.520 With that change, it's approved. 00:10:24.520 --> 00:10:26.320 Okay. ACM update. 00:10:26.320 --> 00:10:30.680 >> How quickly can we go? 00:10:30.680 --> 00:10:33.800 >> Well, I already lost. 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. 00:10:39.200 --> 00:10:44.320 If you have any specific questions, David Gaines, finance director is here to answer those. 00:10:44.320 --> 00:10:50.120 Again, as far as your upcoming future agenda items for in your packet again, 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. 00:10:56.520 --> 00:10:59.680 And with that, I'll answer any questions that you may have. 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. 00:11:04.720 --> 00:11:08.920 >> I think I need some digesting time on the financial thing. 00:11:08.920 --> 00:11:11.840 We might come back to that later. 00:11:11.840 --> 00:11:13.960 >> Sure. >> It's kind of dense. 00:11:13.960 --> 00:11:19.360 >> Would you like for us to bring it back in the next meeting? 00:11:19.360 --> 00:11:22.400 >> Do you want a financial presentation or you just want to be able to ask questions? 00:11:22.400 --> 00:11:24.240 >> I just want to be able to ask questions. 00:11:24.240 --> 00:11:24.800 >> Okay. 00:11:24.800 --> 00:11:26.640 >> So we can just leave it as an ACM update? 00:11:26.640 --> 00:11:27.440 >> Yeah, yeah. 00:11:27.440 --> 00:11:29.200 >> Okay, we can do that. 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. 00:11:34.240 --> 00:11:34.880 >> Okay. 00:11:34.880 --> 00:11:37.880 >> It doesn't make any sense up here, so. 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-- 00:11:44.120 --> 00:11:44.560 >> It is. 00:11:44.560 --> 00:11:47.400 >> Yeah, the lack of me paying you a big bill is-- 00:11:47.400 --> 00:11:49.480 >> Yeah, and it's problematic across the region for-- 00:11:49.480 --> 00:11:52.440 >> Yeah, yeah, it is, okay. 00:11:52.440 --> 00:11:54.160 All right. 00:11:54.160 --> 00:11:59.120 So concluding items then, is there any items that a board member wishes to have on? 00:11:59.120 --> 00:12:01.280 A future agenda. 00:12:01.280 --> 00:12:05.920 >> I have a couple of items. 00:12:05.920 --> 00:12:12.600 One thing is more of the-- just talk about something that happened like I read 00:12:12.600 --> 00:12:17.840 about the ballet collection services that the city council approved for some areas 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, 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. 00:12:28.200 --> 00:12:33.600 And so that was just one thing and then we were getting-- 00:12:33.600 --> 00:12:38.920 we got one didn't energy center report and then we haven't gotten anymore 00:12:38.920 --> 00:12:42.160 and there's actually been two quarters that have passed and I wondered 00:12:42.160 --> 00:12:44.960 if maybe we could pick back on that. 00:12:44.960 --> 00:12:48.800 It might be just because George's move, you know, we had some leadership changes 00:12:48.800 --> 00:12:50.120 so it's possible that that happens. 00:12:50.120 --> 00:12:51.400 I just like to do that again. 00:12:51.400 --> 00:12:53.600 And then one more item. 00:12:53.600 --> 00:12:58.720 So, I see on Facebook and this app, you know, next door or something like that, 00:12:58.720 --> 00:13:06.960 I think it's called right, I see the recycling coordinator, her name is Misty Adams, 00:13:06.960 --> 00:13:10.260 the residential recycling education coordinator. 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 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 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 00:13:24.080 --> 00:13:26.000 to do and that way we'll feel like we're in the know even 00:13:26.000 --> 00:13:29.720 if we miss something in this environment, you know. 00:13:29.720 --> 00:13:32.080 That's all I've got. 00:13:32.080 --> 00:13:35.560 >> Any other board members? 00:13:35.560 --> 00:13:39.000 Okay. So, do we have a motion to adjourn? 00:13:39.000 --> 00:13:40.560 >> I move we adjourn. 00:13:40.560 --> 00:13:41.920 >> Brenda moves the adjournment. 00:13:41.920 --> 00:13:43.440 Second? 00:13:43.440 --> 00:13:44.200 >> Second. 00:13:44.200 --> 00:13:45.160 >> All in favor, aye? 00:13:45.160 --> 00:13:46.160 >> Aye. 00:13:46.160 --> 00:13:47.000 >> All right. 00:13:47.000 --> 00:13:49.520 >> 614, didn't set a record this time.