1 00:00:00,000 --> 00:00:05,000 - Okay, it is nine o'clock and we do have a quorum. 2 00:00:05,000 --> 00:00:08,060 So it's called to order the public utilities board 3 00:00:08,060 --> 00:00:12,380 for the city of Denton on March 11th, 2024. 4 00:00:12,380 --> 00:00:15,100 Did anybody register to speak? 5 00:00:15,100 --> 00:00:16,080 No, all right. 6 00:00:16,080 --> 00:00:19,260 Then we'll go right into the consent agenda. 7 00:00:19,260 --> 00:00:21,720 Does anybody wish to pull an item? 8 00:00:21,720 --> 00:00:24,700 I know Mr. Chief is pulling item E. 9 00:00:29,900 --> 00:00:31,220 - Not me. 10 00:00:31,220 --> 00:00:32,500 - Okay, so just item E. 11 00:00:32,500 --> 00:00:36,680 So then do we have a motion to approve items A through D? 12 00:00:36,680 --> 00:00:40,400 - So moved. 13 00:00:40,400 --> 00:00:41,900 - Okay, and a second? 14 00:00:41,900 --> 00:00:43,420 - Second. 15 00:00:43,420 --> 00:00:44,540 - All in favor say aye. 16 00:00:44,540 --> 00:00:45,980 - Aye. 17 00:00:45,980 --> 00:00:48,140 - Motion carries, item E. 18 00:00:48,140 --> 00:00:56,300 - Hello, I'm Katie Koch. 19 00:00:56,300 --> 00:00:58,020 I'm the project manager for the project 20 00:00:58,020 --> 00:01:00,340 that this is pertaining to. 21 00:01:00,340 --> 00:01:03,300 Yeah. 22 00:01:03,300 --> 00:01:08,300 - There is no presentation on it. 23 00:01:08,300 --> 00:01:12,980 There's no presentation on this item that you put together? 24 00:01:12,980 --> 00:01:15,180 - No, this is just for the approval 25 00:01:15,180 --> 00:01:17,140 to submit a full application. 26 00:01:17,140 --> 00:01:20,900 We'll have to go back through PUB for another resolution 27 00:01:20,900 --> 00:01:24,980 and a draft bond ordinance when we get approval. 28 00:01:24,980 --> 00:01:26,880 - Okay. 29 00:01:28,340 --> 00:01:30,220 - Well, I don't want to go into any details 30 00:01:30,220 --> 00:01:34,220 because there are no details for me to go into. 31 00:01:34,220 --> 00:01:37,140 - I can-- 32 00:01:37,140 --> 00:01:39,740 - I think it's just asking for approval 33 00:01:39,740 --> 00:01:41,300 to submit the application. 34 00:01:41,300 --> 00:01:44,360 - Yeah, I can provide high level if you'd like. 35 00:01:44,360 --> 00:01:47,360 - $195 million worth of no detail. 36 00:01:47,360 --> 00:01:51,540 - That is the current OPCC for the whole expansion project 37 00:01:51,540 --> 00:01:54,180 including design, CMR, which we are seeking 38 00:01:54,180 --> 00:01:58,220 to ask approval for, and the full construction cost. 39 00:01:58,220 --> 00:02:01,020 And for the full five year project, 40 00:02:01,020 --> 00:02:02,460 they escalated the numbers. 41 00:02:02,460 --> 00:02:07,820 - There are other disciplines in this matter as well. 42 00:02:07,820 --> 00:02:10,060 - Well, just Stephen Gay, director of water utilities. 43 00:02:10,060 --> 00:02:14,640 So high level is this is, we have to do like 44 00:02:14,640 --> 00:02:18,300 a pre-application, so just I guess declaring our intent 45 00:02:18,300 --> 00:02:20,640 to apply for the funds. 46 00:02:20,640 --> 00:02:24,060 This project is in our five year CIP. 47 00:02:24,060 --> 00:02:27,820 It's been planned for quite some time. 48 00:02:27,820 --> 00:02:30,580 This is the process, the process we're going through 49 00:02:30,580 --> 00:02:32,380 right now is we just have to demonstrate 50 00:02:32,380 --> 00:02:36,620 that we've shared and we have PUB approval to apply. 51 00:02:36,620 --> 00:02:41,380 Once we, our application, our pre-application is accepted, 52 00:02:41,380 --> 00:02:44,260 we'll be invited back for an actual application, 53 00:02:44,260 --> 00:02:47,420 and then that'll have all of the information highlighted. 54 00:02:47,420 --> 00:02:49,340 You know, we'll dig down into the details, 55 00:02:49,340 --> 00:02:51,500 do a nice little presentation for you 56 00:02:51,500 --> 00:02:54,040 about the development board, the loan, 57 00:02:54,040 --> 00:02:56,980 and the project, so this is essentially our, 58 00:02:56,980 --> 00:03:01,680 like our letter of intent, if that makes sense. 59 00:03:01,680 --> 00:03:03,700 - I have a question. 60 00:03:03,700 --> 00:03:08,180 Does this include the entire cost of the project, 61 00:03:08,180 --> 00:03:09,900 or is this only a portion? 62 00:03:09,900 --> 00:03:11,780 - This is the entire cost of the project, 63 00:03:11,780 --> 00:03:12,620 including design. - Okay, so we're gonna 64 00:03:12,620 --> 00:03:15,940 get a loan for the entire project through these means. 65 00:03:15,940 --> 00:03:16,780 - Yes. - Yes. 66 00:03:16,780 --> 00:03:18,260 - Thank you. 67 00:03:18,260 --> 00:03:19,100 - Go ahead, Devin. 68 00:03:19,100 --> 00:03:21,980 - Is the fixed rate interest rate known, 69 00:03:21,980 --> 00:03:23,900 or will it be known? 70 00:03:23,900 --> 00:03:26,220 - We'll know when they... 71 00:03:26,220 --> 00:03:27,460 - Oh, I'm sorry. - I'm sorry, 72 00:03:27,460 --> 00:03:29,340 we're agreeing here. - So the Texas Water, 73 00:03:29,340 --> 00:03:31,540 sorry, Jessica Williams, CFO for the city. 74 00:03:31,540 --> 00:03:34,780 So the Texas Water Development Board provides loan funding 75 00:03:34,780 --> 00:03:38,820 for particular entities that are approved 76 00:03:38,820 --> 00:03:40,340 to move forward with water projects, 77 00:03:40,340 --> 00:03:42,500 so it's a combination of state and federal funding 78 00:03:42,500 --> 00:03:45,620 that allows us to go forward to apply for the loans. 79 00:03:45,620 --> 00:03:47,940 Texas Water Development Board then issues 80 00:03:47,940 --> 00:03:50,860 the actual debt to the market, 81 00:03:50,860 --> 00:03:53,780 and then we are responsible for the repayment of that debt. 82 00:03:53,780 --> 00:03:56,100 Right now, they're running about two basis points 83 00:03:56,100 --> 00:03:59,620 under the market, so for us, this would be a benefit 84 00:03:59,620 --> 00:04:02,540 in that we can borrow this money with less expense 85 00:04:02,540 --> 00:04:05,300 to the city through the Texas Water Development Board 86 00:04:05,300 --> 00:04:07,540 than we can sell it on the market right now. 87 00:04:07,540 --> 00:04:08,380 - Yeah. 88 00:04:08,380 --> 00:04:11,220 There's just nothing for me to explain to my neighbor 89 00:04:11,220 --> 00:04:12,980 when I said, "Oh, what was this shit you voted for?" 90 00:04:12,980 --> 00:04:14,220 Excuse me. 91 00:04:14,220 --> 00:04:17,340 What was the stuff you voted for $195 million to approve on? 92 00:04:17,340 --> 00:04:19,980 I don't know, they're just applying for something. 93 00:04:19,980 --> 00:04:22,820 I mean, I know what it reads here, I can see that, 94 00:04:22,820 --> 00:04:26,900 but anyway, we gotta have expansion. 95 00:04:26,900 --> 00:04:27,740 - Yes. 96 00:04:27,740 --> 00:04:32,380 - Is there a ceiling level for that fixed rate? 97 00:04:32,380 --> 00:04:37,180 - The rate will vary based on when we actually 98 00:04:37,180 --> 00:04:39,460 get to the market, but what we would be looking at 99 00:04:39,460 --> 00:04:41,940 is closing in December. 100 00:04:41,940 --> 00:04:43,420 There is no ceiling on the rate, 101 00:04:43,420 --> 00:04:44,780 but the Texas Water Development Board 102 00:04:44,780 --> 00:04:46,660 does run competitively to the market 103 00:04:46,660 --> 00:04:48,300 and generally under market. 104 00:04:48,300 --> 00:04:50,940 - So the rates the rate, we take it no matter what? 105 00:04:50,940 --> 00:04:51,780 - Correct. 106 00:04:51,780 --> 00:04:54,140 - And it's best to go this route 107 00:04:54,140 --> 00:04:56,700 if the rate gets too high versus out into the public, 108 00:04:56,700 --> 00:04:57,540 is that right? 109 00:04:57,540 --> 00:04:59,380 - Yes, at this time it is. 110 00:04:59,380 --> 00:05:02,140 When we were looking at rates back during COVID 111 00:05:02,140 --> 00:05:03,660 where we could go out for 2%, 112 00:05:03,660 --> 00:05:04,940 it didn't make sense to go through 113 00:05:04,940 --> 00:05:06,220 Texas Water Development Board 114 00:05:06,220 --> 00:05:08,660 because we could go to the market for less. 115 00:05:08,660 --> 00:05:10,860 However, with rates where they are right now, 116 00:05:10,860 --> 00:05:13,660 we can't beat the Texas Water Development Board. 117 00:05:13,660 --> 00:05:17,580 - And as time proceeds, we have the flexibility though 118 00:05:17,580 --> 00:05:19,820 to be able to pivot at any time 119 00:05:19,820 --> 00:05:22,660 in case all hell breaks loose, pardon the pun. 120 00:05:22,660 --> 00:05:25,060 - We could call the debt when it becomes callable. 121 00:05:25,060 --> 00:05:27,100 So at 10 years, we could call the debt 122 00:05:27,100 --> 00:05:29,300 if we are in a place where we could refund it 123 00:05:29,300 --> 00:05:31,460 for say a 2% rate again. 124 00:05:31,460 --> 00:05:33,620 Although, I mean, I hope we see those days again, 125 00:05:33,620 --> 00:05:35,020 but I highly doubt it. 126 00:05:35,020 --> 00:05:37,260 - And I'm referring to before we even pull the trigger 127 00:05:37,260 --> 00:05:39,140 if you see the rates take off. 128 00:05:39,140 --> 00:05:42,020 - If we make a decision prior to December, 129 00:05:42,020 --> 00:05:43,500 we can pull out of the deal. 130 00:05:43,500 --> 00:05:46,460 There is a deadline though that will pass 131 00:05:46,460 --> 00:05:48,340 at which point we can't pull back out of the deal. 132 00:05:48,340 --> 00:05:51,980 - If rates go crazy as we hope it will not. 133 00:05:51,980 --> 00:05:53,300 - Correct. 134 00:05:53,300 --> 00:05:54,820 - I just wanted to know what the precaution 135 00:05:54,820 --> 00:05:56,540 and what safeguards we have at that point. 136 00:05:56,540 --> 00:05:59,700 'Cause is this project such that if the rates 137 00:05:59,700 --> 00:06:04,700 just go out of the way, we just put it on hold? 138 00:06:04,700 --> 00:06:07,060 - Yes, we could, absolutely. 139 00:06:07,060 --> 00:06:09,180 We could turn down the funding if we chose to 140 00:06:09,180 --> 00:06:12,340 prior to the Texas Water Development sale of the debt. 141 00:06:12,340 --> 00:06:14,420 Once they have sold the debt, we are committed. 142 00:06:14,420 --> 00:06:17,900 - I imagine it'd be a rather extreme rate 143 00:06:17,900 --> 00:06:19,180 because this is rather important. 144 00:06:19,180 --> 00:06:20,220 I understand that, yeah. 145 00:06:20,220 --> 00:06:21,060 Thank you. 146 00:06:21,060 --> 00:06:23,460 - Other questions? 147 00:06:23,460 --> 00:06:24,300 - Yeah, I-- 148 00:06:24,300 --> 00:06:26,820 - You're still on, you're green. 149 00:06:26,820 --> 00:06:27,660 - I am. 150 00:06:27,660 --> 00:06:33,420 Yeah, well hers was echoing so I was being careful, 151 00:06:33,420 --> 00:06:35,340 but yeah. 152 00:06:35,340 --> 00:06:38,740 I'm just gonna abstain for lack of information, 153 00:06:38,740 --> 00:06:40,500 not that it matters, but thank you. 154 00:06:40,500 --> 00:06:44,900 - All right, do we have a motion to approve item E? 155 00:06:47,300 --> 00:06:48,660 Mr. Rybak moves. 156 00:06:48,660 --> 00:06:49,620 Do we have second? 157 00:06:49,620 --> 00:06:52,660 Mr. Taylor, all in favor say aye. 158 00:06:52,660 --> 00:06:53,500 - Aye. 159 00:06:53,500 --> 00:06:54,340 - Opposed? 160 00:06:54,340 --> 00:06:55,180 - Abstain. 161 00:06:55,180 --> 00:06:56,540 - Abstain, okay. 162 00:06:56,540 --> 00:06:57,380 Thank you. 163 00:06:57,380 --> 00:06:58,460 - Thank you. 164 00:06:58,460 --> 00:07:00,300 - Next item is approval of the minutes. 165 00:07:00,300 --> 00:07:04,260 Were there any changes to the February 26th, 2024 minutes? 166 00:07:04,260 --> 00:07:07,500 Okay, do we have a motion to approve? 167 00:07:07,500 --> 00:07:10,780 Mr. Taylor motions, second? 168 00:07:10,780 --> 00:07:12,620 - Sure. 169 00:07:12,620 --> 00:07:14,700 - Mr. Rybak, all in favor? 170 00:07:14,700 --> 00:07:15,700 - Aye. 171 00:07:15,700 --> 00:07:16,540 - All right. 172 00:07:17,380 --> 00:07:20,380 Consider recommending the adoption of an ordinance 173 00:07:20,380 --> 00:07:22,340 for the city of Denton, Texas, 174 00:07:22,340 --> 00:07:25,100 establishing the schedule of rates for electric service, 175 00:07:25,100 --> 00:07:26,260 providing for repealer, 176 00:07:26,260 --> 00:07:28,740 and providing for severability clause, 177 00:07:28,740 --> 00:07:30,660 and providing for an effective date. 178 00:07:30,660 --> 00:07:32,580 That's a motion. 179 00:07:32,580 --> 00:07:34,620 - Good morning, Madam Chair, PUB members. 180 00:07:34,620 --> 00:07:37,140 I'm Bill Shepherd with Dent Municipal Electric, 181 00:07:37,140 --> 00:07:38,940 and I'm here today to talk to you a little bit 182 00:07:38,940 --> 00:07:41,700 about electric rate ordinance adjustment 183 00:07:41,700 --> 00:07:45,380 that we mentioned last time, the PUB meeting. 184 00:07:45,380 --> 00:07:46,900 Unfortunately, you all didn't have quorum, 185 00:07:46,900 --> 00:07:49,740 but Mr. Puente did submit information 186 00:07:49,740 --> 00:07:53,620 talking about our midyear budget adjustments, 187 00:07:53,620 --> 00:07:57,020 as well as the updated pro forma. 188 00:07:57,020 --> 00:07:59,380 So I'm gonna go one step beyond that. 189 00:07:59,380 --> 00:08:01,660 Part of the elements of that discussion 190 00:08:01,660 --> 00:08:05,740 were to request adjustment to the energy cost adjustment, 191 00:08:05,740 --> 00:08:10,420 the ECA, as well as the transmission cost recovery factor 192 00:08:10,420 --> 00:08:13,940 that has been suspended since October of 2017. 193 00:08:16,180 --> 00:08:17,580 So we'll jump right in it. 194 00:08:17,580 --> 00:08:21,780 So what we're requesting is to make an adjustment 195 00:08:21,780 --> 00:08:26,780 to the ECA starting effective April 1st, so next month, 196 00:08:26,780 --> 00:08:31,980 and that adjustment would bring our ECA from .0341 197 00:08:31,980 --> 00:08:36,860 up to .0447 per kilowatt hour. 198 00:08:36,860 --> 00:08:40,500 The impact on a residential bill 199 00:08:40,500 --> 00:08:44,180 is about $10.60 a month for that adjustment. 200 00:08:45,460 --> 00:08:47,940 The other adjustment that we're requesting is that, 201 00:08:47,940 --> 00:08:49,540 or reinstatement, I should say, 202 00:08:49,540 --> 00:08:52,100 is the transmission cost recovery factor. 203 00:08:52,100 --> 00:08:54,660 This was a portion of the bill that has been suspended 204 00:08:54,660 --> 00:08:58,420 since October of 2017, and it was built to recover 205 00:08:58,420 --> 00:09:01,540 our transmission costs that we pay out to ERCOT. 206 00:09:01,540 --> 00:09:05,020 So reinstatement of that, it'll go from zero, 207 00:09:05,020 --> 00:09:10,020 which it is right now, up to .0135 dollars per kilowatt hour, 208 00:09:12,260 --> 00:09:17,020 or roughly a $13.50 per month impact to the residential bill. 209 00:09:17,020 --> 00:09:22,740 So both of those are what we're proposing 210 00:09:22,740 --> 00:09:26,900 for going into effect April 1st. 211 00:09:26,900 --> 00:09:28,420 - Excuse me, before we move on? 212 00:09:28,420 --> 00:09:29,260 - Yes, sir. 213 00:09:29,260 --> 00:09:31,780 - So the total of that was like 23.50? 214 00:09:31,780 --> 00:09:32,900 - 24.10. 215 00:09:32,900 --> 00:09:37,500 - 24.10 per month per client, so that's about $300 a year 216 00:09:37,500 --> 00:09:39,540 to the average residential user. 217 00:09:40,700 --> 00:09:42,860 - Okay, and since I wasn't here for the meeting 218 00:09:42,860 --> 00:09:47,740 without a quorum, can you tell us a little bit 219 00:09:47,740 --> 00:09:51,380 about the reason for the adjustments, the background? 220 00:09:51,380 --> 00:09:52,460 - Yeah, sure. 221 00:09:52,460 --> 00:09:55,980 So part of that reasoning rationale is the fact 222 00:09:55,980 --> 00:09:59,020 that we have not had a rate increase in almost seven years, 223 00:09:59,020 --> 00:10:01,100 and everything around us has been going up. 224 00:10:01,100 --> 00:10:05,500 So we have made every change that we can 225 00:10:05,500 --> 00:10:08,220 and squeezed out every efficiencies we can 226 00:10:08,220 --> 00:10:11,300 within our operations, and at this point, 227 00:10:11,300 --> 00:10:14,900 with the cost of fuel continuing to go up, 228 00:10:14,900 --> 00:10:19,900 we had a large unexpected cost of fuel last year 229 00:10:19,900 --> 00:10:23,180 that part of that presentation from last time 230 00:10:23,180 --> 00:10:26,300 discussed a $31 million bond issuance 231 00:10:26,300 --> 00:10:30,420 to finance that amount of the overage for the fuel. 232 00:10:30,420 --> 00:10:34,620 But really it's just trying to correct our rates 233 00:10:34,620 --> 00:10:37,780 to more reflect what we're paying in the market. 234 00:10:37,780 --> 00:10:39,420 - Okay, thank you. 235 00:10:39,420 --> 00:10:41,100 - Yes, go ahead, Mr. Randolph. 236 00:10:41,100 --> 00:10:43,140 - Could you go back to that one? 237 00:10:43,140 --> 00:10:43,980 - Yes, sir. 238 00:10:43,980 --> 00:10:49,380 - Thank you. 239 00:10:49,380 --> 00:10:52,580 So the increases average per resident, 240 00:10:52,580 --> 00:10:57,580 so is it possible to tell me what is the, 241 00:10:57,580 --> 00:11:00,420 not the impact, but what would be the average cost 242 00:11:00,420 --> 00:11:02,580 per on your residence? 243 00:11:02,580 --> 00:11:03,460 Is it a monthly fee? 244 00:11:03,460 --> 00:11:06,340 Are we talking that in Denton, you've got an average 245 00:11:06,340 --> 00:11:10,020 of let's say $200 a month per resident on an average, 246 00:11:10,020 --> 00:11:12,380 and then we add the $10 to that, is that? 247 00:11:12,380 --> 00:11:15,700 - Our average for the residential right now is $106. 248 00:11:15,700 --> 00:11:16,540 - Okay. 249 00:11:16,540 --> 00:11:18,420 - That's the total bill for electric, 250 00:11:18,420 --> 00:11:20,980 so it'll be 2410 on top of that. 251 00:11:20,980 --> 00:11:23,180 - Oh, thank you, that's helpful, appreciate it. 252 00:11:23,180 --> 00:11:34,420 All right, so this is just a blow up of the performance. 253 00:11:34,420 --> 00:11:35,980 It might be a little hard to see, 254 00:11:35,980 --> 00:11:38,060 or maybe you can see better from there. 255 00:11:38,060 --> 00:11:43,060 So the oval that I've circled that purchase power 256 00:11:43,060 --> 00:11:47,380 on the second, the red oval, $189 million, 257 00:11:47,380 --> 00:11:49,620 that's the portion that we're trying to recover. 258 00:11:49,620 --> 00:11:52,180 Now, not all of that is recovered straight 259 00:11:52,180 --> 00:11:55,660 through our customers, part of that is our core expenses 260 00:11:55,660 --> 00:11:59,980 and core recovers all of that on its own. 261 00:11:59,980 --> 00:12:02,460 So that's the component that we're trying to recover, 262 00:12:02,460 --> 00:12:04,620 and another thing I failed to mention too 263 00:12:04,620 --> 00:12:09,620 is this mid-year correction is intended to correct 264 00:12:09,620 --> 00:12:13,220 for expenses for the last part of the year, 265 00:12:13,220 --> 00:12:16,620 not the entire year, so we're not collecting 266 00:12:16,620 --> 00:12:20,660 six months of revenues to account for 12, 267 00:12:20,660 --> 00:12:23,820 we're just gonna try to true up for the last six months. 268 00:12:23,820 --> 00:12:26,860 So that equates to about $70 million 269 00:12:26,860 --> 00:12:29,940 that we'd be collecting for ECA, 270 00:12:29,940 --> 00:12:34,940 and then the square below the $189, the $26,881 million, 271 00:12:34,940 --> 00:12:37,140 that is what we're projecting to pay to ERCOT 272 00:12:37,140 --> 00:12:39,860 for transmission costs this year. 273 00:12:39,860 --> 00:12:43,260 So half of that is the $13,440 that we're proposing 274 00:12:43,260 --> 00:12:48,260 to collect with the .0135, yes sir. 275 00:12:48,260 --> 00:12:50,340 - But these adjustments will continue 276 00:12:50,340 --> 00:12:51,860 into next year, I'm presuming. 277 00:12:51,860 --> 00:12:55,620 - Yes sir, yeah, so next year for the TCRF, 278 00:12:55,620 --> 00:12:58,660 we'll be recovering that full amount for the year, 279 00:12:58,660 --> 00:13:01,660 which is projected to be the 27,284, 280 00:13:01,660 --> 00:13:03,780 right next to it to the right, 281 00:13:03,780 --> 00:13:08,780 and then we'll propose an ECA that we'll try to collect 282 00:13:08,780 --> 00:13:10,780 for the entire ECA throughout the year too, 283 00:13:10,780 --> 00:13:13,260 but on the next slide, we'll talk a little bit more 284 00:13:13,260 --> 00:13:15,540 about that strategy and how we levelize 285 00:13:15,540 --> 00:13:17,140 that through the year. 286 00:13:17,140 --> 00:13:19,340 - Question, Bill. - Yes sir. 287 00:13:19,340 --> 00:13:21,740 - Well, I don't understand, here's a personnel. 288 00:13:21,740 --> 00:13:27,820 The projected is, forgive my eyesight here, 289 00:13:28,860 --> 00:13:32,220 is 25, is that right, 25873? 290 00:13:32,220 --> 00:13:33,060 - The one right here? 291 00:13:33,060 --> 00:13:36,140 - The projected, well, that is the mid-year, 292 00:13:36,140 --> 00:13:38,780 that's your now new estimate for personnel, 293 00:13:38,780 --> 00:13:39,620 is that correct? 294 00:13:39,620 --> 00:13:44,620 - Yes, I don't see the 24, there's 26090 for the personnel. 295 00:13:44,620 --> 00:13:45,900 - That's because I can't see it. 296 00:13:45,900 --> 00:13:46,740 - Yes sir, I'm sorry. 297 00:13:46,740 --> 00:13:48,460 - That's why I'm asking. 298 00:13:48,460 --> 00:13:50,980 - Oh, there we go, right there, right? 299 00:13:50,980 --> 00:13:51,980 - Yeah. - Yeah. 300 00:13:51,980 --> 00:13:56,980 - What's the fluctuation there between actual and projected? 301 00:13:59,660 --> 00:14:01,140 - Actual, 2023. 302 00:14:01,140 --> 00:14:07,940 - So, yeah, so that was 2023 actuals, 303 00:14:07,940 --> 00:14:10,020 and then we have the projected for 2024. 304 00:14:10,020 --> 00:14:13,900 If you recall, we had a pay plan study that was done 305 00:14:13,900 --> 00:14:17,180 and we adjusted our salaries across the city, 306 00:14:17,180 --> 00:14:18,580 and that reflects part of that. 307 00:14:18,580 --> 00:14:22,500 - So that's like almost, is that almost $2 million, 308 00:14:22,500 --> 00:14:23,340 is that correct? 309 00:14:23,340 --> 00:14:25,420 - Yes sir, and then there's some other. 310 00:14:25,420 --> 00:14:28,700 - Yeah, for '23, there's also salary savings, 311 00:14:28,700 --> 00:14:31,100 so we don't usually spend all our budget 312 00:14:31,100 --> 00:14:32,460 when it comes to personnel. 313 00:14:32,460 --> 00:14:34,500 There's a turnover and what have you, so. 314 00:14:34,500 --> 00:14:39,460 - It was a pretty big fluctuation from what I can tell 315 00:14:39,460 --> 00:14:44,460 with my eyes from here, but okay, that's it, thanks. 316 00:14:44,460 --> 00:14:45,740 - Good. 317 00:14:45,740 --> 00:14:49,780 All right, so I wanna walk you a little bit 318 00:14:49,780 --> 00:14:52,100 through the process here that we're proposing. 319 00:14:54,220 --> 00:14:57,540 We are proposing to have the ordinance delegate 320 00:14:57,540 --> 00:15:00,860 that authority for adjusting the ECA and the TCRF 321 00:15:00,860 --> 00:15:01,780 to this board. 322 00:15:01,780 --> 00:15:06,660 Part of that would be quarterly balancing of the ECA 323 00:15:06,660 --> 00:15:10,540 within plus or minus $5 million, so we would come to you 324 00:15:10,540 --> 00:15:14,540 on a regular basis, preferably the month before the quarter, 325 00:15:14,540 --> 00:15:18,260 and ask you for any kind of adjustments that are necessary. 326 00:15:18,260 --> 00:15:20,780 Ideally, we'll try to keep those to a minimum 327 00:15:20,780 --> 00:15:25,780 throughout the year, but it will give us that option 328 00:15:25,780 --> 00:15:28,340 to come to you with those adjustment requests. 329 00:15:28,340 --> 00:15:33,380 When we do make an adjustment request, 330 00:15:33,380 --> 00:15:36,140 it'll be designed to go into effect the following month, 331 00:15:36,140 --> 00:15:38,820 which will ideally be that first month of the quarter, 332 00:15:38,820 --> 00:15:40,860 and the city council will have the opportunity 333 00:15:40,860 --> 00:15:43,500 to pull that item and have a discussion if necessary. 334 00:15:49,820 --> 00:15:51,700 I think we already talked about the quarter. 335 00:15:51,700 --> 00:15:55,060 Yeah, so moving forward, we're gonna come to you 336 00:15:55,060 --> 00:15:57,380 on a quarterly basis, and I'll let you know 337 00:15:57,380 --> 00:16:00,420 how we're doing on this fund, and make sure we stay 338 00:16:00,420 --> 00:16:02,420 within that plus or minus $5 million. 339 00:16:02,420 --> 00:16:04,620 - Okay. 340 00:16:04,620 --> 00:16:10,900 - Thank you for the detail on that, appreciate it. 341 00:16:10,900 --> 00:16:12,580 - Yes, sir. - Questions? 342 00:16:12,580 --> 00:16:13,820 Go ahead. 343 00:16:13,820 --> 00:16:17,700 - First, I just wanna say the floating ECA, 344 00:16:17,700 --> 00:16:19,980 I think makes a lot of sense. 345 00:16:19,980 --> 00:16:21,940 Denton forever has had for, I don't know, 346 00:16:21,940 --> 00:16:24,340 seven, eight years or something, has had this flat rate, 347 00:16:24,340 --> 00:16:26,180 and even before that, I think they had a flat rate 348 00:16:26,180 --> 00:16:29,820 for another five or six years previously, 349 00:16:29,820 --> 00:16:34,820 but with volatility and electricity cost, 350 00:16:34,820 --> 00:16:36,980 it probably makes more sense to have this float. 351 00:16:36,980 --> 00:16:39,180 Instead of a single shock where we've been flat 352 00:16:39,180 --> 00:16:42,500 for six years, and we have a 15 or 20% jump 353 00:16:42,500 --> 00:16:46,620 to move up and down every quarter, 354 00:16:46,620 --> 00:16:50,300 I think is a pretty reasonable, a better way to manage that. 355 00:16:50,300 --> 00:16:55,260 If we go back, going back one slide to the ordinance 356 00:16:55,260 --> 00:16:59,420 regarding the ECA, so if we're doing this 357 00:16:59,420 --> 00:17:03,620 before the calendar quarter, so May will approve 358 00:17:03,620 --> 00:17:08,620 for June through August, and then August will approve 359 00:17:08,620 --> 00:17:12,540 September through December, something like that. 360 00:17:12,540 --> 00:17:15,140 - Yeah, the quarters will be the October, 361 00:17:15,140 --> 00:17:18,020 November, December, January, February, March, 362 00:17:18,020 --> 00:17:21,100 April, May, June, July, August, September. 363 00:17:21,100 --> 00:17:24,180 - Okay, do we, yeah, like fiscal calendar. 364 00:17:24,180 --> 00:17:29,020 So the, will that include, it's working on balancing 365 00:17:29,020 --> 00:17:32,860 from the previous quarter, but I think we're all 366 00:17:32,860 --> 00:17:37,860 pretty familiar that Q3 calendar, Q4 fiscal 367 00:17:37,860 --> 00:17:43,820 is probably where 40 or 50% of the cost is going to be. 368 00:17:44,340 --> 00:17:46,740 - Right, so we'll use some forward-looking, too, 369 00:17:46,740 --> 00:17:50,100 for those projections, as well as when we do look back 370 00:17:50,100 --> 00:17:52,300 to see what we've collected, we're only gonna 371 00:17:52,300 --> 00:17:55,340 realistically have the first two months of that quarter 372 00:17:55,340 --> 00:17:57,940 we're looking back at, and then we're gonna project 373 00:17:57,940 --> 00:18:00,660 that third month of that quarter, along with our 374 00:18:00,660 --> 00:18:03,500 forward-looking projections to get that ECA. 375 00:18:03,500 --> 00:18:06,180 So we'll be tuning, it'll be a tuning process. 376 00:18:06,180 --> 00:18:09,020 We're all the time improving our models 377 00:18:09,020 --> 00:18:11,020 that we're gonna be looking at this for. 378 00:18:13,180 --> 00:18:14,980 - Yeah, I think Bill's right. 379 00:18:14,980 --> 00:18:19,980 So we're still looking through that ECA calculator, 380 00:18:19,980 --> 00:18:22,220 and so the next quarter when we come to you, 381 00:18:22,220 --> 00:18:24,300 we'll be happy to kind of walk you through that, 382 00:18:24,300 --> 00:18:26,700 hopefully not get a whole lot of minutiae, 383 00:18:26,700 --> 00:18:28,820 but we'll try to walk you through that 384 00:18:28,820 --> 00:18:29,740 and make sure that we set that. 385 00:18:29,740 --> 00:18:33,460 That may require some adjustments to the ordinance 386 00:18:33,460 --> 00:18:37,900 based on whatever forward-looking basis we wanna do. 387 00:18:37,900 --> 00:18:40,500 Currently, it's just in the following three months. 388 00:18:40,500 --> 00:18:42,300 We're considering maybe looking at six months, 389 00:18:42,300 --> 00:18:44,740 and that way we try to flatten that out over the year, 390 00:18:44,740 --> 00:18:46,780 maybe not have to do as many adjustments. 391 00:18:46,780 --> 00:18:49,260 But again, we'll be prepared to bring that to you 392 00:18:49,260 --> 00:18:50,740 in the next quarter where we're working 393 00:18:50,740 --> 00:18:52,580 through that process now. 394 00:18:52,580 --> 00:18:53,420 - Okay. 395 00:18:53,420 --> 00:18:57,180 Yes, like I said, I think this is a logical thing to do, 396 00:18:57,180 --> 00:19:00,860 and it's gonna be a change for all the citizens 397 00:19:00,860 --> 00:19:02,300 and residents and so forth, 398 00:19:02,300 --> 00:19:03,820 but I think it's the right thing to do. 399 00:19:03,820 --> 00:19:04,660 - It's an industry standard. 400 00:19:04,660 --> 00:19:09,060 - So we're looking at about a 20 to 25% rake height overnight. 401 00:19:09,060 --> 00:19:12,020 Is that, I mean, if I'm a payer of our electric 402 00:19:12,020 --> 00:19:13,220 in the city of Denton, 403 00:19:13,220 --> 00:19:15,980 I'm going to receive a bill that's 20 to 25% higher 404 00:19:15,980 --> 00:19:17,740 overnight with no notice. 405 00:19:17,740 --> 00:19:19,060 I'm just curious. 406 00:19:19,060 --> 00:19:21,460 - Well, we have, again, we've, 407 00:19:21,460 --> 00:19:23,740 we attempted to do a public meeting here with the PUB. 408 00:19:23,740 --> 00:19:25,060 We didn't have quorum. 409 00:19:25,060 --> 00:19:26,220 We did go in front of the council. 410 00:19:26,220 --> 00:19:28,740 We did do a press release on that. 411 00:19:28,740 --> 00:19:31,580 We're gonna continue to try to inform our council, 412 00:19:31,580 --> 00:19:33,100 our customers. 413 00:19:33,100 --> 00:19:35,220 The RECA Chronicle and others on social media 414 00:19:35,220 --> 00:19:39,020 have already kind of picked this up, and it's out there. 415 00:19:39,020 --> 00:19:41,660 I'm getting questions from customers about it. 416 00:19:41,660 --> 00:19:45,420 The reality is, is that our current customer rate, 417 00:19:45,420 --> 00:19:48,340 which is about 10.7 cents per kilowatt hour, 418 00:19:48,340 --> 00:19:51,780 compares very favorable to what's out in the open market. 419 00:19:51,780 --> 00:19:54,340 And so I think people out there understand that, 420 00:19:54,340 --> 00:19:55,340 and they know that, 421 00:19:55,340 --> 00:19:56,700 and they know that we haven't raised rates 422 00:19:56,700 --> 00:19:58,060 in over seven years. 423 00:19:58,060 --> 00:20:01,780 And so, you know, one of the things that we tried to do 424 00:20:01,780 --> 00:20:05,180 was to try to ease into this, if you will, 425 00:20:05,180 --> 00:20:07,140 by not trying to recover the whole year. 426 00:20:07,140 --> 00:20:09,500 So we're just looking at half year, 427 00:20:09,500 --> 00:20:12,020 that way we ease into it in the next year. 428 00:20:12,020 --> 00:20:15,100 We'll go ahead and start recovering 100% of that. 429 00:20:15,100 --> 00:20:20,100 So we certainly understand the impact to customers, 430 00:20:20,100 --> 00:20:22,100 but I think at the end of the day, 431 00:20:22,100 --> 00:20:24,740 we're trying to ensure that this fund 432 00:20:24,740 --> 00:20:27,700 is financially sound going forward. 433 00:20:27,700 --> 00:20:30,300 And unfortunately, this is where we are, 434 00:20:30,300 --> 00:20:31,220 and I think the alternative 435 00:20:31,220 --> 00:20:33,380 is just really not an alternative. 436 00:20:33,380 --> 00:20:35,100 And we'll continue to try to educate 437 00:20:35,100 --> 00:20:36,420 and inform our customers the best we can. 438 00:20:36,420 --> 00:20:37,260 - Yeah, I understand that. 439 00:20:37,260 --> 00:20:40,380 And that's, no one's more concerned 440 00:20:40,380 --> 00:20:42,180 about financial solvency than I am. 441 00:20:42,180 --> 00:20:43,820 What I'm concerned about is, 442 00:20:43,820 --> 00:20:46,340 we're increasing personnel costs by 15%. 443 00:20:46,340 --> 00:20:48,940 I guarantee you're gonna get a lot more calls 444 00:20:48,940 --> 00:20:51,900 than 15% of an increase in personnel for this. 445 00:20:51,900 --> 00:20:54,700 25% is dramatic, and it will happen. 446 00:20:54,700 --> 00:20:59,300 So are we prepared for an influx of maybe less than informed 447 00:20:59,300 --> 00:21:01,140 and less than happy customers? 448 00:21:01,140 --> 00:21:03,180 - Yeah, I think looking at that number, 449 00:21:03,180 --> 00:21:04,420 we could certainly kind of break that out 450 00:21:04,420 --> 00:21:07,620 and give you some more detail. 451 00:21:07,620 --> 00:21:08,700 I think it's important to understand 452 00:21:08,700 --> 00:21:11,300 is that in this particular fund, 453 00:21:11,300 --> 00:21:13,660 salaries, as much as I don't wanna minimize them, 454 00:21:13,660 --> 00:21:16,900 but salaries make up less than 10% of the year-old fund. 455 00:21:16,900 --> 00:21:20,340 And so the larger impact to this fund 456 00:21:20,340 --> 00:21:21,780 is our capital program. 457 00:21:21,780 --> 00:21:23,980 And that's what we're looking at now. 458 00:21:23,980 --> 00:21:26,820 As an example, part of this process, 459 00:21:26,820 --> 00:21:30,380 we pulled out the campus project that we had proposed. 460 00:21:30,380 --> 00:21:32,700 So we've taken $75 million, 461 00:21:32,700 --> 00:21:34,980 and we reduced it to $10 million 462 00:21:34,980 --> 00:21:37,060 to do land acquisition and design. 463 00:21:37,060 --> 00:21:39,180 We've also reduced our overall bond sale 464 00:21:39,180 --> 00:21:42,420 for the current year from 82 million down to 60 million. 465 00:21:42,420 --> 00:21:46,060 And we're now in the process, just completed the process 466 00:21:46,060 --> 00:21:47,580 of looking at our five-year CIP, 467 00:21:47,580 --> 00:21:49,340 and what project can we delay? 468 00:21:49,340 --> 00:21:51,540 What projects can we cash flow a little bit better? 469 00:21:51,540 --> 00:21:52,380 And so we're doing that. 470 00:21:52,380 --> 00:21:54,180 And so what you're gonna see when we come to you 471 00:21:54,180 --> 00:21:58,460 in the budget is gonna be a reduced capital program 472 00:21:58,460 --> 00:22:01,380 that'll have a positive impact on the fund 473 00:22:01,380 --> 00:22:03,580 that's much bigger than anything we're gonna do 474 00:22:03,580 --> 00:22:04,700 on the salary side. 475 00:22:04,700 --> 00:22:07,620 But again, I think what's important to look at 476 00:22:07,620 --> 00:22:10,060 is that the actuals versus the budget 477 00:22:10,060 --> 00:22:11,180 are two different things, right? 478 00:22:11,180 --> 00:22:13,740 And so we really need to give you a better comparison, 479 00:22:13,740 --> 00:22:15,660 and we're certainly happy to follow up with you 480 00:22:15,660 --> 00:22:17,660 with a memo on the details of that. 481 00:22:17,660 --> 00:22:18,480 - Thank you. 482 00:22:18,480 --> 00:22:21,580 - It's good, good. 483 00:22:21,580 --> 00:22:23,780 Sorry, I was just gonna say that was a good point 484 00:22:23,780 --> 00:22:25,660 to pull out of here, 485 00:22:25,660 --> 00:22:27,660 because it is gonna be something that people go, 486 00:22:27,660 --> 00:22:29,140 what are we doing here? 487 00:22:29,140 --> 00:22:31,140 And would that reflect, 488 00:22:31,140 --> 00:22:32,700 I mean, that personnel number I know 489 00:22:32,700 --> 00:22:35,060 is just gonna be a big deal. 490 00:22:35,060 --> 00:22:37,160 It's an obvious thing to look at, 491 00:22:37,160 --> 00:22:40,940 although it's a lower percentage of our rate. 492 00:22:40,940 --> 00:22:45,940 But I mean, are we taking less consulting work 493 00:22:45,940 --> 00:22:49,480 and putting it more in permanent personnel? 494 00:22:49,480 --> 00:22:52,220 - Well, what I can tell you is this, 495 00:22:52,220 --> 00:22:57,220 is that if you go back to fiscal year 2019-20, 496 00:22:57,220 --> 00:22:58,680 fiscal year 2019-20, 497 00:22:59,820 --> 00:23:03,860 where we were in personnel, we were at 189 FTEs. 498 00:23:03,860 --> 00:23:06,980 Where we are today is 187 FTEs. 499 00:23:06,980 --> 00:23:09,860 So we've actually reduced FTEs during that period 500 00:23:09,860 --> 00:23:11,740 and slowly added them back in, right? 501 00:23:11,740 --> 00:23:15,820 And so we've done a lot of work on the personnel side 502 00:23:15,820 --> 00:23:18,740 to minimize and streamline things as best as we can. 503 00:23:18,740 --> 00:23:23,320 And so, again, let us go back and get you the details 504 00:23:23,320 --> 00:23:27,740 on that so that you're a little bit better informed. 505 00:23:27,740 --> 00:23:29,780 - I just wanna, I want a generalization of it. 506 00:23:29,780 --> 00:23:32,380 I mean, if you don't have that today, that's fine. 507 00:23:32,380 --> 00:23:35,820 But just why don't we start spending more money here 508 00:23:35,820 --> 00:23:39,340 on this line item that it's just, 509 00:23:39,340 --> 00:23:42,580 to me, it's an obvious number that comes up. 510 00:23:42,580 --> 00:23:45,100 - Yeah, I think Terry had a good point. 511 00:23:45,100 --> 00:23:48,760 The other thing is as we're looking at the ECA and TCRF, 512 00:23:48,760 --> 00:23:52,020 there are no personal expenses associated 513 00:23:52,020 --> 00:23:54,180 with any of those rates. 514 00:23:54,180 --> 00:23:56,520 All that is on the base rate side. 515 00:23:56,520 --> 00:23:59,060 Bill, if you go back to the five-year forecast, 516 00:23:59,060 --> 00:24:00,260 in the five-year forecast, 517 00:24:00,260 --> 00:24:04,940 we are looking at an additional 5.5% base rate increase 518 00:24:04,940 --> 00:24:05,780 for next year. 519 00:24:05,780 --> 00:24:07,860 And again, that's where we believe 520 00:24:07,860 --> 00:24:10,140 that some of the work we're doing on the CIP side 521 00:24:10,140 --> 00:24:14,220 and other things will reduce that going forward. 522 00:24:14,220 --> 00:24:16,560 But again, the personal expenses have nothing to do 523 00:24:16,560 --> 00:24:19,220 with the TCRF or the ECA. 524 00:24:19,220 --> 00:24:20,780 But I understand the question. 525 00:24:20,780 --> 00:24:21,840 Let us go back. 526 00:24:21,840 --> 00:24:24,760 We'll get you a memo on details on personnel. 527 00:24:24,760 --> 00:24:27,080 - Yeah, and I might have failed to mention, 528 00:24:27,080 --> 00:24:30,700 but the ECA and the TCRF are complete pass-through costs. 529 00:24:30,700 --> 00:24:32,700 Those are costs we incur. 530 00:24:32,700 --> 00:24:33,540 - I get that. 531 00:24:33,540 --> 00:24:35,420 That's a big change and a big number 532 00:24:35,420 --> 00:24:37,780 that people are going to be, oh, what are we doing here? 533 00:24:37,780 --> 00:24:38,860 Is everybody getting a raise 534 00:24:38,860 --> 00:24:41,220 and we're spending this many more million dollars? 535 00:24:41,220 --> 00:24:43,860 It's just a generalization, I think, is all I need. 536 00:24:43,860 --> 00:24:45,900 I don't need a detail of every person. 537 00:24:45,900 --> 00:24:48,540 - I have a question about process. 538 00:24:48,540 --> 00:24:51,060 You're actually asking the City Council 539 00:24:51,060 --> 00:24:55,180 to delegate the authority to approve 540 00:24:55,180 --> 00:24:58,900 these interim quarterly changes to the Public Utility Board. 541 00:24:58,900 --> 00:24:59,740 - Yes, sir. 542 00:24:59,740 --> 00:25:00,580 - Okay. 543 00:25:00,580 --> 00:25:02,300 So are we comfortable with that? 544 00:25:02,300 --> 00:25:03,140 - Hell yeah. 545 00:25:03,140 --> 00:25:03,980 - Yeah. 546 00:25:03,980 --> 00:25:04,800 - Okay. 547 00:25:04,800 --> 00:25:05,640 - Why are we volunteering? 548 00:25:05,640 --> 00:25:06,680 And I know we don't show up a lot, 549 00:25:06,680 --> 00:25:08,940 but that kind of dictates why we don't show up a lot, 550 00:25:08,940 --> 00:25:11,380 'cause it really doesn't make any difference. 551 00:25:11,380 --> 00:25:16,380 And that's been my gripe all the time to the Council. 552 00:25:16,380 --> 00:25:17,500 Why are we asking these boards to show up? 553 00:25:17,500 --> 00:25:19,420 - Well, we're concerned about public low back, 554 00:25:19,420 --> 00:25:22,900 and now we're accepting responsibility for that. 555 00:25:22,900 --> 00:25:23,740 - In the past. 556 00:25:23,740 --> 00:25:25,260 - There's something to keep in mind. 557 00:25:25,260 --> 00:25:27,180 - In the past, this was our task. 558 00:25:27,180 --> 00:25:28,020 - Oh, it was? 559 00:25:28,020 --> 00:25:28,840 - Yes. 560 00:25:28,840 --> 00:25:29,680 - Okay, well, that's good information. 561 00:25:29,680 --> 00:25:30,520 I didn't have that. 562 00:25:30,520 --> 00:25:31,340 Thank you. 563 00:25:31,340 --> 00:25:33,020 - Yeah, Mr. Rebeck, so the current ordinance 564 00:25:33,020 --> 00:25:35,980 already delegates that to the PUB. 565 00:25:35,980 --> 00:25:39,060 I think because we haven't made these changes 566 00:25:39,060 --> 00:25:42,140 in quite some time, we wanna revisit that with the Council. 567 00:25:42,140 --> 00:25:43,220 I think at the end of the day, 568 00:25:43,220 --> 00:25:46,860 ultimately the Council's deal retains final authority. 569 00:25:46,860 --> 00:25:48,700 So this delegation is only as good 570 00:25:48,700 --> 00:25:50,860 as the Council wants it to be. 571 00:25:50,860 --> 00:25:53,420 And so if they decide that the board's 572 00:25:53,420 --> 00:25:55,540 taking some action that they wanna talk about, 573 00:25:55,540 --> 00:25:57,740 they always retain that right. 574 00:25:57,740 --> 00:25:59,900 - I saw that in the write-up for the ordinance, 575 00:25:59,900 --> 00:26:02,460 but I was just curious 'cause it seemed like a change to me, 576 00:26:02,460 --> 00:26:03,700 but if that's the way it used to be, 577 00:26:03,700 --> 00:26:05,620 then that's good to know, good information. 578 00:26:05,620 --> 00:26:06,460 Thank you. 579 00:26:06,460 --> 00:26:09,820 - To piggyback on your statement, 580 00:26:09,820 --> 00:26:14,620 it's unfortunate we're in the economic times that we are. 581 00:26:14,620 --> 00:26:18,060 And for that 25% increase, it will. 582 00:26:18,060 --> 00:26:21,540 It will be a pocket hitter that we need to be prepared for. 583 00:26:21,540 --> 00:26:25,420 And as it, rightfully so, comes back to this committee, 584 00:26:25,420 --> 00:26:29,260 my suggestion is from the past that we used to have, 585 00:26:29,260 --> 00:26:32,180 our meetings will be longer than 30 minutes 586 00:26:32,180 --> 00:26:33,740 and be prepared for that. 587 00:26:33,740 --> 00:26:36,580 And we'll be to the one that makes the motion 588 00:26:36,580 --> 00:26:40,340 and seconds it because they will be the target. 589 00:26:40,340 --> 00:26:41,740 Being facetious, of course. 590 00:26:41,740 --> 00:26:45,900 But I appreciate that. 591 00:26:45,900 --> 00:26:48,380 And I like the idea that it's a pass-through. 592 00:26:48,380 --> 00:26:50,740 So I think that helps. 593 00:26:50,740 --> 00:26:52,540 It's not going into anyone's pocket. 594 00:26:52,540 --> 00:26:53,860 It's a pass-through cost. 595 00:26:53,860 --> 00:26:56,140 We understand pass-through costs. 596 00:26:56,140 --> 00:26:59,260 It's just unfortunate that it catches us here, 597 00:26:59,260 --> 00:27:02,420 but it is what it is and we'd be prepared for it. 598 00:27:02,420 --> 00:27:05,580 - We all know about our $39 phone plan that cost us $80 599 00:27:05,580 --> 00:27:08,620 because of pass-through fees and everything else. 600 00:27:08,620 --> 00:27:10,660 Yeah, so it doesn't matter that it's a $39 phone. 601 00:27:10,660 --> 00:27:12,020 - That was that creeping effect. 602 00:27:12,020 --> 00:27:14,380 And I appreciate that we're gonna be able to look at that. 603 00:27:14,380 --> 00:27:15,220 - Exactly. 604 00:27:15,220 --> 00:27:18,580 - And we will be holding somebody's feet to the fire 605 00:27:18,580 --> 00:27:21,500 versus the council, and I think that's important that we, 606 00:27:21,500 --> 00:27:22,420 because we're right up here. 607 00:27:22,420 --> 00:27:24,900 We're the front line, so why not be able to do that? 608 00:27:24,900 --> 00:27:25,740 - And let me reiterate. 609 00:27:25,740 --> 00:27:28,940 I think DME is the best-run utility we have in the city, 610 00:27:28,940 --> 00:27:31,220 okay, and because of this information, 611 00:27:31,220 --> 00:27:33,300 we get to ask these questions, you know? 612 00:27:33,300 --> 00:27:38,300 And it's really nice to have the respect of, 613 00:27:38,300 --> 00:27:40,020 or y'all to have the respect of the board, 614 00:27:40,020 --> 00:27:43,660 or anyway, y'all go into detail 615 00:27:43,660 --> 00:27:45,820 and be able to explain things, and I appreciate that. 616 00:27:45,820 --> 00:27:47,500 So let me make sure that's clear. 617 00:27:47,500 --> 00:27:50,700 - I'd also be remiss if I didn't give you 618 00:27:50,700 --> 00:27:52,180 a little bit more context. 619 00:27:52,180 --> 00:27:56,260 So the $106, that's our average customer bill right now, 620 00:27:56,260 --> 00:27:59,300 that makes us the second-lowest cost provider in the state. 621 00:27:59,300 --> 00:28:01,740 - And that means we'll get to sell that. 622 00:28:01,740 --> 00:28:03,420 - Yeah, that's the sizzle we need. 623 00:28:03,420 --> 00:28:06,220 - Well, that's the first part of the story. 624 00:28:06,220 --> 00:28:08,540 The second part is once we make this adjustment, 625 00:28:08,540 --> 00:28:10,340 it'll bring us to the middle of the pack, 626 00:28:10,340 --> 00:28:12,300 which I would argue is a little bit more appropriate 627 00:28:12,300 --> 00:28:15,620 for a utility such as DME, who's constantly growing, 628 00:28:15,620 --> 00:28:17,540 constantly expanding, constantly looking 629 00:28:17,540 --> 00:28:19,780 at new and better ways to do things. 630 00:28:19,780 --> 00:28:21,500 - And more than just distribution. 631 00:28:21,500 --> 00:28:22,340 - Yes, sir. 632 00:28:22,340 --> 00:28:26,140 - And this is an industry standard type of rate 633 00:28:26,140 --> 00:28:29,940 that every utility has this on their bill. 634 00:28:29,940 --> 00:28:31,460 I'm served by CoServe. 635 00:28:31,460 --> 00:28:35,540 They're passing it through, my bill went way up. 636 00:28:35,540 --> 00:28:39,100 - And I'll steal a little bit of Mr. Nalti's thunder, 637 00:28:39,100 --> 00:28:42,820 but also don't forget, we're 100% renewable. 638 00:28:42,820 --> 00:28:44,260 - Yes. - That comes with a cost. 639 00:28:44,260 --> 00:28:46,260 None of those compares, I'm telling you about, 640 00:28:46,260 --> 00:28:50,220 that we're middle in the pack of, can make that claim. 641 00:28:50,220 --> 00:28:53,420 So as a fact, in fact, after we make the adjustment, 642 00:28:53,420 --> 00:28:55,340 we're still gonna be the second lowest provider 643 00:28:55,340 --> 00:28:57,860 for a retail 100% product. 644 00:28:57,860 --> 00:28:58,860 - But correct me if I'm wrong, 645 00:28:58,860 --> 00:29:01,980 that 31 million was for natural gas. 646 00:29:01,980 --> 00:29:05,700 - That 31 million was a fuel offset, yeah. 647 00:29:05,700 --> 00:29:09,060 - So again, I'm just an uninformed citizen. 648 00:29:09,060 --> 00:29:11,780 They're gonna say, well, for 100% renewable, 649 00:29:11,780 --> 00:29:14,420 why am I paying $31 million for natural gas? 650 00:29:14,420 --> 00:29:17,060 Now, of course, we all know how that works. 651 00:29:17,060 --> 00:29:19,500 But it's 31 million for natural gas 652 00:29:19,500 --> 00:29:20,980 when we're 100% renewable. 653 00:29:20,980 --> 00:29:22,300 So that will be a talking point. 654 00:29:22,300 --> 00:29:25,580 - Yeah, absolutely, and we'll rely on you all 655 00:29:25,580 --> 00:29:27,900 to take those talking points forward, 656 00:29:27,900 --> 00:29:31,020 and we'll certainly continue to try to educate our customers. 657 00:29:31,020 --> 00:29:32,860 - Well, I think it's great that we are going 658 00:29:32,860 --> 00:29:36,860 to take the gloves off and do what we should be doing. 659 00:29:36,860 --> 00:29:39,420 And we should have a mindset of, 660 00:29:39,420 --> 00:29:41,780 be prepared to ask questions, and ask a bunch, 661 00:29:41,780 --> 00:29:43,420 because they'll be ready to answer it. 662 00:29:43,420 --> 00:29:44,260 - Yeah. 663 00:29:44,260 --> 00:29:47,660 - Thank you. - Any further questions? 664 00:29:47,660 --> 00:29:49,100 Oh, here comes Mr. Nalti. 665 00:29:49,100 --> 00:29:52,500 - Sorry, I stole some of that thunder. 666 00:29:52,500 --> 00:29:53,340 - Did we recognize you? 667 00:29:53,340 --> 00:29:55,300 - I just apologize. 668 00:29:55,300 --> 00:29:56,820 Terry Nalti, Assistant General Manager. 669 00:29:56,820 --> 00:29:58,460 I just wanna correct the record. 670 00:29:58,460 --> 00:30:02,140 The 31.5 million was not for natural gas. 671 00:30:02,140 --> 00:30:04,660 Bill refers to it as a fuel adjustment factor. 672 00:30:04,660 --> 00:30:07,540 It's actually an energy cost adjustment factor. 673 00:30:07,540 --> 00:30:12,540 It's the cumulative cost of supplying market-based energy 674 00:30:12,540 --> 00:30:14,460 to serve the load. 675 00:30:14,460 --> 00:30:18,260 And in this past summer, as you know, it was very hot. 676 00:30:18,260 --> 00:30:23,500 And our demand was significantly higher than we forecasted. 677 00:30:23,500 --> 00:30:26,540 So the cost that we're talking about, 678 00:30:26,540 --> 00:30:31,100 the 31.5 million, was extra wholesale electric cost 679 00:30:31,100 --> 00:30:33,500 that we had to purchase energy 680 00:30:33,500 --> 00:30:36,140 to meet the demands of our customers. 681 00:30:36,140 --> 00:30:38,700 Yes, we do burn natural gas, but we do that 682 00:30:38,700 --> 00:30:42,220 in order to protect our rate payers 683 00:30:42,220 --> 00:30:45,900 from the volatility associated with the intermittency 684 00:30:45,900 --> 00:30:48,340 of our renewable resources. 685 00:30:48,340 --> 00:30:51,460 Were it not for that natural gas 686 00:30:51,460 --> 00:30:54,260 and the cost associated with it, 687 00:30:54,260 --> 00:30:58,780 that 31.5 million would have been more like 100 million. 688 00:30:58,780 --> 00:31:02,380 So that's why we have the DEC, 689 00:31:02,380 --> 00:31:06,900 and it's been referred to as an insurance policy. 690 00:31:06,900 --> 00:31:11,220 It is a mitigant to the intermittency 691 00:31:11,220 --> 00:31:12,500 of the renewable energy. 692 00:31:12,500 --> 00:31:16,860 I hope that clarifies it for you. 693 00:31:16,860 --> 00:31:19,060 - Well, in terms of that offset, 694 00:31:19,060 --> 00:31:22,500 it's kind of, we use that energy center, 695 00:31:22,500 --> 00:31:25,220 the gas plant, if you will, 696 00:31:25,220 --> 00:31:28,860 to offset the high costs of the volatility 697 00:31:28,860 --> 00:31:31,340 from the renewable energy. 698 00:31:31,340 --> 00:31:32,180 - That's correct. 699 00:31:32,180 --> 00:31:33,180 - So it's almost a-- 700 00:31:33,180 --> 00:31:36,220 - It's actually not the high cost of the renewable energy, 701 00:31:36,220 --> 00:31:38,220 it's the fact that when the renewable energy 702 00:31:38,220 --> 00:31:40,980 doesn't show up in the marketplace, 703 00:31:40,980 --> 00:31:45,060 the resulting prices in the wholesale market are much higher. 704 00:31:45,060 --> 00:31:50,060 And so, if you lose 10,000 megawatts of wind generation 705 00:31:50,060 --> 00:31:53,180 on a very hot day, you gotta replace that 706 00:31:53,180 --> 00:31:58,100 with very high cost, older generation resources 707 00:31:58,100 --> 00:32:01,020 that aren't dependent upon Mother Nature 708 00:32:01,020 --> 00:32:03,340 to provide the energy. 709 00:32:03,340 --> 00:32:05,780 So, that's what causes the volatility 710 00:32:05,780 --> 00:32:07,380 and the prices to go up. 711 00:32:07,380 --> 00:32:08,220 - Right. 712 00:32:08,220 --> 00:32:10,220 - Now, one last point I'd make is that 713 00:32:10,220 --> 00:32:14,020 there have been a number of changes in the ERCOT market. 714 00:32:14,020 --> 00:32:19,020 And last year, let me say last year, last fiscal year, 715 00:32:19,020 --> 00:32:23,580 the independent market monitor 716 00:32:23,580 --> 00:32:29,060 calculated that the cost of market changes 717 00:32:29,060 --> 00:32:34,060 to the market was eight to $12 billion of additional cost. 718 00:32:34,060 --> 00:32:38,060 And so, if you just take a load ratio share 719 00:32:38,060 --> 00:32:42,620 of our percentage of energy that we consume out of the market, 720 00:32:42,620 --> 00:32:45,660 that's in excess of the 31.5 billion, 721 00:32:45,660 --> 00:32:50,500 or 31.5 million that we're trying to recover here. 722 00:32:50,500 --> 00:32:54,620 So, all utilities in the market 723 00:32:54,620 --> 00:32:57,620 experienced the same phenomenon. 724 00:32:57,620 --> 00:33:02,620 And all utilities, Bill said, we look at comparables. 725 00:33:02,620 --> 00:33:05,700 We wanna make sure that we're being cost effective 726 00:33:05,700 --> 00:33:09,420 and that our rates are competitive. 727 00:33:09,420 --> 00:33:14,420 I expect all utilities in the state to raise their rates. 728 00:33:14,420 --> 00:33:15,900 And on the competitive side, 729 00:33:15,900 --> 00:33:19,060 if you're in competitive encore areas, 730 00:33:19,060 --> 00:33:24,060 right now you're paying 14 to 16 cents per kilowatt hour. 731 00:33:24,060 --> 00:33:26,180 And even with the rate increase, 732 00:33:26,180 --> 00:33:29,460 we're still gonna be under 12 cents. 733 00:33:29,460 --> 00:33:32,700 So, we're doing everything we can 734 00:33:32,700 --> 00:33:35,020 to try to keep the cost down to customers. 735 00:33:35,020 --> 00:33:37,420 There are just a number of these issues 736 00:33:37,420 --> 00:33:39,300 that we have no control over. 737 00:33:39,300 --> 00:33:43,140 And therefore, we have to pass through those costs. 738 00:33:43,140 --> 00:33:44,940 - Thank you. - Thank you. 739 00:33:44,940 --> 00:33:48,860 - On the TCRF, those are directly tied to the changes 740 00:33:48,860 --> 00:33:51,060 in transmission cost of service? 741 00:33:51,060 --> 00:33:51,900 - Yes, sir. 742 00:33:51,900 --> 00:33:54,020 - So, that's half of this rate change 743 00:33:54,020 --> 00:33:59,020 is due to the PUC and that we've been following 744 00:33:59,020 --> 00:34:04,260 via our appeal and lawsuit against them. 745 00:34:04,260 --> 00:34:06,180 So, I think that's also an important factor. 746 00:34:06,180 --> 00:34:09,620 This isn't just fuel cost. 747 00:34:09,620 --> 00:34:11,980 It is now, ERCOT's energy prices 748 00:34:11,980 --> 00:34:17,020 over the last three years have been crazy. 749 00:34:17,020 --> 00:34:21,460 And we see that all over in rates all over Texas. 750 00:34:21,460 --> 00:34:26,180 I think there's also something to consider the, 751 00:34:26,180 --> 00:34:28,780 my understanding is our renewables are, 752 00:34:28,780 --> 00:34:31,020 I should say in the money. 753 00:34:31,020 --> 00:34:34,380 Like they are generating more value 754 00:34:34,380 --> 00:34:35,860 than we are paying for them. 755 00:34:35,860 --> 00:34:39,180 And the deck is also in the money. 756 00:34:39,180 --> 00:34:44,060 When it runs, it's paying all of its operating cost 757 00:34:44,060 --> 00:34:46,540 and it's capital. 758 00:34:46,540 --> 00:34:50,060 The problem is we don't have enough of either apparently. 759 00:34:50,060 --> 00:34:52,660 So, now part of that was we've designed those 760 00:34:52,660 --> 00:34:55,740 eight years ago and nine years. 761 00:34:55,740 --> 00:34:58,020 I don't remember exactly how many years ago, 762 00:34:58,020 --> 00:34:59,460 almost a decade ago. 763 00:34:59,460 --> 00:35:02,140 And we've had lots of load growth since then. 764 00:35:02,140 --> 00:35:05,340 So, and I think that's why we had a flat rate 765 00:35:05,340 --> 00:35:09,060 for seven years was at the time the deck was constructed, 766 00:35:09,060 --> 00:35:11,420 it could cover our entire load, 767 00:35:11,420 --> 00:35:12,820 take us out of the ERCOT market 768 00:35:12,820 --> 00:35:15,340 when the ERCOT market went crazy 769 00:35:15,340 --> 00:35:16,860 and it can no longer do that. 770 00:35:17,940 --> 00:35:20,460 And same thing on our wind and solar. 771 00:35:20,460 --> 00:35:27,660 It's a challenge to know when to expand those 772 00:35:27,660 --> 00:35:30,820 and they are variable and we buy 120 or something percent 773 00:35:30,820 --> 00:35:33,740 of our entire load from wind and solar, 774 00:35:33,740 --> 00:35:35,420 but it doesn't always come when we need it. 775 00:35:35,420 --> 00:35:38,580 So, do we need to move to 140% 776 00:35:38,580 --> 00:35:40,580 or at some point does it break over 777 00:35:40,580 --> 00:35:43,660 and become a cost instead of a benefit? 778 00:35:43,660 --> 00:35:47,500 Because right now our renewables lower our rates. 779 00:35:48,780 --> 00:35:52,700 - So, Devin threw out a lot of stuff here. 780 00:35:52,700 --> 00:35:56,780 So, one, we are working on an RFP now, 781 00:35:56,780 --> 00:35:59,500 we're evaluating that, we're gonna be bringing that to you 782 00:35:59,500 --> 00:36:02,260 to award additional 100 megawatts, 783 00:36:02,260 --> 00:36:04,540 bring on additional 100 megawatts of solar 784 00:36:04,540 --> 00:36:07,540 and an additional 100 that we're also working on. 785 00:36:07,540 --> 00:36:10,740 So, we're looking at additional 200 megawatts of solar 786 00:36:10,740 --> 00:36:13,220 that we're gonna be bringing to the board 787 00:36:13,220 --> 00:36:15,260 and to the council for consideration. 788 00:36:16,100 --> 00:36:19,220 The other item that you mentioned, 789 00:36:19,220 --> 00:36:22,860 so we are working on updating our den renewable resource plan 790 00:36:22,860 --> 00:36:25,220 to address that sort of question 791 00:36:25,220 --> 00:36:27,820 and certainly that'll be presented to you 792 00:36:27,820 --> 00:36:31,460 and to the council in a kind of a cafeteria plan, 793 00:36:31,460 --> 00:36:34,260 menu plan so that you understand what the options are 794 00:36:34,260 --> 00:36:36,220 and what the costs are as well 795 00:36:36,220 --> 00:36:39,660 to keeping the status quo, making changes to that, 796 00:36:39,660 --> 00:36:41,460 making other investments and what have you 797 00:36:41,460 --> 00:36:45,340 and internally we'll be looking for direction on that. 798 00:36:45,340 --> 00:36:47,820 The other thing that I'll just remind you 799 00:36:47,820 --> 00:36:50,500 and you referenced our ongoing 800 00:36:50,500 --> 00:36:52,980 transmission cost of service case, 801 00:36:52,980 --> 00:36:57,780 that was nexus of $30 million that disappeared overnight. 802 00:36:57,780 --> 00:36:59,740 And so, that certainly has had an impact 803 00:36:59,740 --> 00:37:03,540 and we're trying to react as best we can 804 00:37:03,540 --> 00:37:06,220 to those types of financial issues. 805 00:37:06,220 --> 00:37:10,940 - Any further questions? 806 00:37:10,940 --> 00:37:14,700 Okay, do we have a motion to approve? 807 00:37:15,860 --> 00:37:16,780 Thank you Billy. 808 00:37:16,780 --> 00:37:18,260 Second? 809 00:37:18,260 --> 00:37:19,420 Thank you. 810 00:37:19,420 --> 00:37:20,860 All in favor say aye. 811 00:37:20,860 --> 00:37:22,300 - Aye. - Opposed? 812 00:37:22,300 --> 00:37:24,580 There we go. 813 00:37:24,580 --> 00:37:25,820 - Thank you. - Thank you. 814 00:37:25,820 --> 00:37:29,180 Management reports. 815 00:37:29,180 --> 00:37:32,700 - Madam Chair, members of the board, 816 00:37:32,700 --> 00:37:34,620 so the first item that we have here for you 817 00:37:34,620 --> 00:37:37,220 is a follow up item. 818 00:37:37,220 --> 00:37:40,860 I see that Brett is here. 819 00:37:40,860 --> 00:37:43,780 So Brett kind of helped put that together for us 820 00:37:43,780 --> 00:37:46,420 and so our hope is that that's given you 821 00:37:46,420 --> 00:37:48,500 the information needed on the impact 822 00:37:48,500 --> 00:37:50,380 on all the changes to the criteria manual. 823 00:37:50,380 --> 00:37:52,580 But certainly if there's questions that you have 824 00:37:52,580 --> 00:37:54,460 on any of that, certainly Brett's here 825 00:37:54,460 --> 00:37:57,300 and we have other staff here that can address that. 826 00:37:57,300 --> 00:37:58,740 - I have a question for Brett. 827 00:37:58,740 --> 00:38:11,820 - Brett Bourgeois, Deputy City Engineer. 828 00:38:11,820 --> 00:38:12,820 - Thank you for coming today 829 00:38:12,820 --> 00:38:14,340 and I appreciate you generating a report, 830 00:38:14,340 --> 00:38:16,940 especially since I'm pretty much the one who asked for it. 831 00:38:16,940 --> 00:38:17,860 - Of course. 832 00:38:17,860 --> 00:38:19,300 - One of the things I was wondering is 833 00:38:19,300 --> 00:38:22,500 it seemed that the costs that are mentioned here 834 00:38:22,500 --> 00:38:24,780 are primarily cost to the city? 835 00:38:24,780 --> 00:38:30,060 - So with regards to the stormwater cost you're referring to, 836 00:38:30,060 --> 00:38:32,740 yeah, so currently we do not have a requirement 837 00:38:32,740 --> 00:38:37,100 to mitigate sediment or sediment office development sites 838 00:38:37,100 --> 00:38:39,140 from private developments. 839 00:38:39,140 --> 00:38:42,420 That's a requirement of our MS4 permit with the state 840 00:38:42,420 --> 00:38:45,500 or the federal government and that is a recommendation 841 00:38:45,500 --> 00:38:49,820 that most municipalities and most states already require. 842 00:38:49,820 --> 00:38:51,260 We do not have that requirement. 843 00:38:51,260 --> 00:38:54,180 We're anticipating EPA indicated they're gonna make 844 00:38:54,180 --> 00:38:56,940 that a federal requirement in the next update. 845 00:38:56,940 --> 00:38:59,700 So we want to kind of get in line with the industry 846 00:38:59,700 --> 00:39:02,940 and because we don't have that sediment requirement, 847 00:39:02,940 --> 00:39:05,420 our staff has to clean and maintain the channels 848 00:39:05,420 --> 00:39:07,260 and the culverts currently. 849 00:39:07,260 --> 00:39:08,580 And I think I put a number in there. 850 00:39:08,580 --> 00:39:11,220 We ran about five years of data. 851 00:39:11,220 --> 00:39:14,780 It's about 300 or so thousand dollars a year on average 852 00:39:14,780 --> 00:39:17,420 to clean out sediment from the existing channels 853 00:39:17,420 --> 00:39:21,620 and culverts currently the city has to pay for. 854 00:39:21,620 --> 00:39:24,300 So that will still occur because those sites 855 00:39:24,300 --> 00:39:25,780 are not currently being mitigated, 856 00:39:25,780 --> 00:39:27,940 but we're trying to limit any future sites 857 00:39:27,940 --> 00:39:31,060 from having sediment deposits into the system. 858 00:39:31,060 --> 00:39:33,860 - Okay, so in theory there could be some savings then 859 00:39:33,860 --> 00:39:37,220 to the city's operating budget as a result of these changes. 860 00:39:37,220 --> 00:39:40,020 What I was primarily concerned about were costs 861 00:39:40,020 --> 00:39:44,900 to the public, so if it costs more to build culverts 862 00:39:44,900 --> 00:39:49,660 and drainage, then it's gonna put more into the tax base 863 00:39:49,660 --> 00:39:52,740 as a result of higher bond costs, 864 00:39:52,740 --> 00:39:56,260 or it's going to cause developers to have higher costs 865 00:39:56,260 --> 00:39:58,900 to develop property for these kind of changes. 866 00:39:58,900 --> 00:40:01,740 Those are kind of some of the things I was looking for. 867 00:40:01,740 --> 00:40:06,060 So I'm not sure that those were kind of addressed 868 00:40:06,060 --> 00:40:08,460 in your memo to cost to others 869 00:40:08,460 --> 00:40:10,860 as opposed to internal cost to the city. 870 00:40:10,860 --> 00:40:13,380 - So we looked at the cost for others. 871 00:40:13,380 --> 00:40:17,980 They're the only one, there's no way for us to estimate 872 00:40:17,980 --> 00:40:20,500 the stormwater impact cost or the changes 873 00:40:20,500 --> 00:40:22,860 to the stormwater criteria manual to others 874 00:40:22,860 --> 00:40:25,460 because they're so highly dependent upon the site, 875 00:40:25,460 --> 00:40:27,660 the type of development and the type of mitigation measure 876 00:40:27,660 --> 00:40:29,980 they decide to go with. 877 00:40:29,980 --> 00:40:32,420 So about three or four different independent variables 878 00:40:32,420 --> 00:40:34,900 that are all very selective. 879 00:40:34,900 --> 00:40:37,940 We reached out to iSwim, which is our guidance document 880 00:40:37,940 --> 00:40:40,260 that we adopted from the Metroplex, 881 00:40:40,260 --> 00:40:43,100 and we spoke with them about how to get some costs. 882 00:40:43,100 --> 00:40:45,660 We spoke with our consultants about how to estimate costs, 883 00:40:45,660 --> 00:40:47,900 and they directed us to these online tools 884 00:40:47,900 --> 00:40:51,100 we provided links to within their memo 885 00:40:51,100 --> 00:40:52,980 that you can go in there, you can put in the size 886 00:40:52,980 --> 00:40:56,220 of your site, the amount of impervious surface 887 00:40:56,220 --> 00:40:58,980 you're putting in, the type of mitigation measure 888 00:40:58,980 --> 00:41:00,740 you're choosing, and then it'll give you 889 00:41:00,740 --> 00:41:05,100 an approximate installation cost, operating cost, 890 00:41:05,100 --> 00:41:07,740 maintenance cost, et cetera, and the maintenance timeframes. 891 00:41:07,740 --> 00:41:09,820 So they do have online tools. 892 00:41:09,820 --> 00:41:11,180 You can put in all those parameters 893 00:41:11,180 --> 00:41:12,660 for your different sites. 894 00:41:12,660 --> 00:41:17,100 Every site is so dependent, though we didn't feel comfortable 895 00:41:17,100 --> 00:41:19,620 putting up a number into the report 896 00:41:19,620 --> 00:41:22,540 that's so dependent on so many factors. 897 00:41:22,540 --> 00:41:24,580 - Okay, well I think on the stormwater side, 898 00:41:24,580 --> 00:41:26,220 and I certainly understand that. 899 00:41:26,220 --> 00:41:28,620 I think the only one that you're able to 900 00:41:28,620 --> 00:41:32,740 sort of more clearly talk about was street lighting. 901 00:41:32,740 --> 00:41:35,300 So I'm assuming that's increased 902 00:41:35,300 --> 00:41:37,300 is both in the cost of the development 903 00:41:37,300 --> 00:41:38,820 and in the cost of operation. 904 00:41:38,820 --> 00:41:42,540 - I think Mr. Fielder here would be able 905 00:41:42,540 --> 00:41:43,740 to speak more to the streetlight one. 906 00:41:43,740 --> 00:41:45,740 The streetlight one is one that's already been adopted. 907 00:41:45,740 --> 00:41:46,580 - While you're up there. 908 00:41:46,580 --> 00:41:47,420 - Yes. 909 00:41:47,420 --> 00:41:51,860 - Is this coming out, is this, 910 00:41:51,860 --> 00:41:54,420 the mitigation is going to stormwater, et cetera? 911 00:41:54,420 --> 00:41:56,060 Does that come from the drainage budget? 912 00:41:56,060 --> 00:41:56,900 - Correct. 913 00:41:56,900 --> 00:41:59,420 All right. 914 00:41:59,420 --> 00:42:06,140 - Move it down. 915 00:42:06,140 --> 00:42:07,980 - Jerry Fielder, Division Engineering Manager. 916 00:42:07,980 --> 00:42:08,980 Could you repeat your question? 917 00:42:08,980 --> 00:42:12,420 I was looking through my emails, I'm sorry. 918 00:42:12,420 --> 00:42:14,220 - No, I was saying the street lighting 919 00:42:14,220 --> 00:42:16,540 was the thing that was most obvious 920 00:42:16,540 --> 00:42:18,900 to be able to calculate a cost to, 921 00:42:18,900 --> 00:42:21,700 and it's going to increase the cost to 56%. 922 00:42:21,700 --> 00:42:23,420 That's a reasonable number. 923 00:42:23,420 --> 00:42:26,460 You increase the number of lights, drops, 924 00:42:26,460 --> 00:42:28,680 power pole, it's all gonna cost money. 925 00:42:28,680 --> 00:42:31,380 But what about the cost of operation? 926 00:42:31,380 --> 00:42:33,020 Is that passed on to the resident? 927 00:42:33,020 --> 00:42:34,580 Is that passed on to the city budget? 928 00:42:34,580 --> 00:42:36,180 How does that work? 929 00:42:36,180 --> 00:42:38,820 - A little bit different from what Brett talked about, 930 00:42:38,820 --> 00:42:41,740 but the additional cost for street lighting 931 00:42:41,740 --> 00:42:44,100 is typically borne by the developer. 932 00:42:44,100 --> 00:42:45,260 That's the majority of the folks 933 00:42:45,260 --> 00:42:46,620 who put in the streetlights in this, 934 00:42:46,620 --> 00:42:48,420 so we pass that on to the developer. 935 00:42:48,420 --> 00:42:49,420 - But the cost of operating lights. 936 00:42:49,420 --> 00:42:52,220 - Yes, the cost of operating is through the rates 937 00:42:52,220 --> 00:42:53,580 of what the city's component is. 938 00:42:53,580 --> 00:42:55,100 The city has to pay for the energy, 939 00:42:55,100 --> 00:42:56,620 and that's in the rates. 940 00:42:56,620 --> 00:42:58,220 So yes, with a few more lights, 941 00:42:58,220 --> 00:43:00,260 there's gonna be a little bit more on that. 942 00:43:00,260 --> 00:43:02,220 - Okay, so that's just populated 943 00:43:02,220 --> 00:43:04,940 through the entire city rate case, 944 00:43:04,940 --> 00:43:07,540 which you all just covered in great detail. 945 00:43:07,540 --> 00:43:09,340 - Yes. - Okay. 946 00:43:09,340 --> 00:43:11,740 All right, well, thank you for the clarification. 947 00:43:11,740 --> 00:43:15,020 I don't have any other questions, thank you. 948 00:43:15,020 --> 00:43:15,860 - Thank you. 949 00:43:15,860 --> 00:43:22,500 - All right, so the next item that you have in front of you 950 00:43:22,500 --> 00:43:24,420 is just a future agenda. 951 00:43:24,420 --> 00:43:27,900 Obviously, today we've covered the ECA-TCRF. 952 00:43:27,900 --> 00:43:31,420 Coming up on May 20th, we'll start kind of the budget process 953 00:43:31,420 --> 00:43:33,980 and the finance department will bring to you 954 00:43:33,980 --> 00:43:35,260 all of the utility budgets 955 00:43:35,260 --> 00:43:38,740 and with all the detail that you've customarily gotten, 956 00:43:38,740 --> 00:43:41,500 and we'll certainly be able to get into as much detail 957 00:43:41,500 --> 00:43:43,340 as you would like on that. 958 00:43:43,340 --> 00:43:45,540 So just plan accordingly, if you will. 959 00:43:45,540 --> 00:43:47,020 So we certainly would love to make sure 960 00:43:47,020 --> 00:43:50,980 that we have a quorum of these dates. 961 00:43:50,980 --> 00:43:54,180 The most important date is July 8th, 962 00:43:54,180 --> 00:43:55,580 'cause that's when we'll be asking you 963 00:43:55,580 --> 00:44:00,580 to approve rate changes and what have you, 964 00:44:00,620 --> 00:44:05,140 so they can then go to the council for further discussion. 965 00:44:05,140 --> 00:44:07,420 And then for new business items, 966 00:44:07,420 --> 00:44:09,700 today we've knocked out another one, 967 00:44:09,700 --> 00:44:11,580 which is on the criteria manual questions, 968 00:44:11,580 --> 00:44:14,680 and we still have one left regarding fleet, 969 00:44:14,680 --> 00:44:16,660 but we still have some time on that one. 970 00:44:16,660 --> 00:44:19,660 So with that, Madam Chair, that concludes our update. 971 00:44:19,660 --> 00:44:21,580 Any questions, anyone wants to have some? 972 00:44:21,580 --> 00:44:22,420 - Questions? 973 00:44:22,420 --> 00:44:26,220 Mr. Dunn, good job, nobody's asking. 974 00:44:26,220 --> 00:44:27,740 That brings us to concluding items. 975 00:44:27,740 --> 00:44:30,100 Does any board member wish to say something to the public 976 00:44:30,100 --> 00:44:32,740 or have something put on a future agenda? 977 00:44:32,740 --> 00:44:40,700 Okay, seeing none, it is actually 944. 978 00:44:40,700 --> 00:44:42,180 Do we have a motion to adjourn? 979 00:44:42,180 --> 00:44:43,020 - So moved. 980 00:44:43,020 --> 00:44:43,840 - Okay. 981 00:44:43,840 --> 00:44:46,100 (laughing)