1
00:00:00,000 --> 00:00:08,120
 >> Okay, it is nine o'clock and we do have a quorum, so we're called to order the public

2
00:00:08,120 --> 00:00:12,800
 utilities board meeting for March 25th, 2024 for the city of Denton.

3
00:00:12,800 --> 00:00:15,720
 Cassie, did anyone register to speak?

4
00:00:15,720 --> 00:00:16,720
 No.

5
00:00:16,720 --> 00:00:17,720
 Okay.

6
00:00:17,720 --> 00:00:19,540
 And we'll go into the consent agenda.

7
00:00:19,540 --> 00:00:23,400
 Does any board member wish to pull an item from A through D?

8
00:00:23,400 --> 00:00:24,400
 Okay.

9
00:00:24,400 --> 00:00:26,000
 I see none.

10
00:00:26,000 --> 00:00:28,880
 Do we have a motion to approve the consent agenda?

11
00:00:28,880 --> 00:00:29,880
 >> So moved.

12
00:00:29,880 --> 00:00:30,880
 >> Thomas moved.

13
00:00:30,880 --> 00:00:33,080
 And do we have a second?

14
00:00:33,080 --> 00:00:34,080
 Second?

15
00:00:34,080 --> 00:00:35,080
 Devin, seconds.

16
00:00:35,080 --> 00:00:36,360
 All in favor say aye.

17
00:00:36,360 --> 00:00:37,360
 >> Aye.

18
00:00:37,360 --> 00:00:38,360
 >> Carries.

19
00:00:38,360 --> 00:00:42,680
 Approval of minutes for March 24th, 2024.

20
00:00:42,680 --> 00:00:46,280
 Do we have any changes or corrections?

21
00:00:46,280 --> 00:00:48,080
 Do we have a motion to approve?

22
00:00:48,080 --> 00:00:50,040
 >> So moved.

23
00:00:50,040 --> 00:00:51,040
 >> Billy moves.

24
00:00:51,040 --> 00:00:52,040
 Do we have second?

25
00:00:52,040 --> 00:00:53,040
 >> Second.

26
00:00:53,040 --> 00:00:54,040
 >> Thomas seconds.

27
00:00:54,040 --> 00:00:55,040
 All in favor say aye.

28
00:00:55,040 --> 00:00:56,040
 >> Aye.

29
00:00:56,040 --> 00:00:57,040
 >> Opposed?

30
00:00:57,040 --> 00:00:58,040
 Carries.

31
00:00:58,040 --> 00:00:59,040
 All right.

32
00:00:59,040 --> 00:01:13,620
 Item B.

33
00:01:13,620 --> 00:01:14,620
 >> All right.

34
00:01:14,620 --> 00:01:15,620
 Good morning.

35
00:01:15,620 --> 00:01:16,620
 >> Good morning.

36
00:01:16,620 --> 00:01:17,620
 >> Members of PUB.

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00:01:17,620 --> 00:01:21,320
 I'm Vispa Pandavong, AD of Finance, and I'm here to talk about the Wells Fargo Letter

38
00:01:21,320 --> 00:01:27,960
 of Credit.

39
00:01:27,960 --> 00:01:33,400
 So just to give you some background on the ERCOT credit and collateral protocols.

40
00:01:33,400 --> 00:01:39,920
 So before October 1st, DME or the state of DIN had a $40 million unsecured line of credit

41
00:01:39,920 --> 00:01:41,480
 with ERCOT.

42
00:01:41,480 --> 00:01:46,160
 And we were basically saving cash to supplement that from time to time.

43
00:01:46,160 --> 00:01:50,600
 So after October 1st, the ERCOT protocol changes.

44
00:01:50,600 --> 00:01:55,840
 They said, you know, no market participants will get any unsecured line of credit going

45
00:01:55,840 --> 00:01:56,840
 forward.

46
00:01:56,840 --> 00:02:03,280
 And we as a city, we went out and did a RFP, and we looked at the options that they gave

47
00:02:03,280 --> 00:02:08,860
 market to market participants, which was cash or letter of credit.

48
00:02:08,860 --> 00:02:14,120
 So -- >> There's a question on that.

49
00:02:14,120 --> 00:02:18,960
 So is that going -- is that an escrow -- how is that treated, the cash?

50
00:02:18,960 --> 00:02:24,280
 >> So like -- so right now cash, yes, the cash is sitting with ERCOT as like an escrow

51
00:02:24,280 --> 00:02:25,280
 account.

52
00:02:25,280 --> 00:02:26,280
 >> It goes to ERCOT?

53
00:02:26,280 --> 00:02:27,280
 >> Not under -- okay.

54
00:02:27,280 --> 00:02:28,280
 Gotcha.

55
00:02:28,280 --> 00:02:29,280
 Thank you.

56
00:02:29,280 --> 00:02:33,800
 >> So just to talk about the letter of credit program in general.

57
00:02:33,800 --> 00:02:40,480
 So this program is going to cost around $500,000, and it's going to be for three years.

58
00:02:40,480 --> 00:02:45,000
 Drawdown is not anticipated, you know, currently when we move forward signing for the letter

59
00:02:45,000 --> 00:02:46,880
 of credit.

60
00:02:46,880 --> 00:02:52,440
 And in the event of a drawdown from the letter of credit, the city has multiple options to

61
00:02:52,440 --> 00:02:58,120
 basically explore financing those dollars.

62
00:02:58,120 --> 00:03:02,920
 So now staff recommends the use of the letter of credit for a couple reasons.

63
00:03:02,920 --> 00:03:06,160
 It really protects the city liquidity.

64
00:03:06,160 --> 00:03:12,200
 Also the city will be earning interest when the cash is sitting here with us.

65
00:03:12,200 --> 00:03:19,560
 And then the third thing is to really meet the ERCOT protocols or requirements.

66
00:03:19,560 --> 00:03:26,380
 So staff is here today to request for the city and DME to basically authorize or recommend

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00:03:26,380 --> 00:03:32,360
 to sign the Wells Fargo letter of credit up to $60 million.

68
00:03:32,360 --> 00:03:33,360
 >> Questions.

69
00:03:33,360 --> 00:03:34,360
 Go ahead.

70
00:03:34,360 --> 00:03:35,360
 Devin first.

71
00:03:35,360 --> 00:03:38,640
 >> Excuse me.

72
00:03:38,640 --> 00:03:43,400
 What is the annual cost to maintain the line of credit?

73
00:03:43,400 --> 00:03:46,040
 >> Around $500,000.

74
00:03:46,040 --> 00:03:53,760
 >> And so of $60 million, that's a fraction of a percent, like 0.3% or something like

75
00:03:53,760 --> 00:03:54,760
 that?

76
00:03:54,760 --> 00:03:55,760
 >> Correct.

77
00:03:55,760 --> 00:03:56,760
 >> Okay.

78
00:03:56,760 --> 00:03:57,760
 Thank you.

79
00:03:57,760 --> 00:03:58,760
 >> Yes.

80
00:03:58,760 --> 00:03:59,760
 Go ahead.

81
00:03:59,760 --> 00:04:00,760
 Rob.

82
00:04:00,760 --> 00:04:05,600
 >> I may have misunderstood, so the $500,000 is for each year.

83
00:04:05,600 --> 00:04:07,640
 It's not for the full three years.

84
00:04:07,640 --> 00:04:08,640
 >> Correct.

85
00:04:08,640 --> 00:04:09,640
 $500,000 each year.

86
00:04:09,640 --> 00:04:12,060
 >> Thank you.

87
00:04:12,060 --> 00:04:15,600
 >> And how much do we have sitting with ERCOT now that will come back to us?

88
00:04:15,600 --> 00:04:21,060
 >> I think it was around a little bit over $30 million, somewhere around there roughly.

89
00:04:21,060 --> 00:04:25,860
 And that number fluctuates because ERCOT pretty much dictates how much cash we have to send

90
00:04:25,860 --> 00:04:26,860
 over.

91
00:04:26,860 --> 00:04:29,440
 And then we have some time to actually send that cash over.

92
00:04:29,440 --> 00:04:32,760
 There's a period that ERCOT provides us.

93
00:04:32,760 --> 00:04:33,760
 >> Okay.

94
00:04:33,760 --> 00:04:34,760
 Other questions?

95
00:04:34,760 --> 00:04:37,160
 >> How's the LOC treated on it?

96
00:04:37,160 --> 00:04:41,540
 Is that going to be a long-term asset, is that what that is?

97
00:04:41,540 --> 00:04:45,000
 >> This one is a letter of credit, and this is not going to be revolving.

98
00:04:45,000 --> 00:04:50,560
 So it's up to that $60 million, and once we draw it down, then that's all you get to draw

99
00:04:50,560 --> 00:04:51,560
 down.

100
00:04:51,560 --> 00:04:52,560
 >> Okay.

101
00:04:52,560 --> 00:04:55,980
 >> So it basically gets subtracted from that $60 million.

102
00:04:55,980 --> 00:04:58,000
 >> Okay.

103
00:04:58,000 --> 00:05:00,320
 >> Further questions?

104
00:05:00,320 --> 00:05:02,280
 Do we have a motion to approve?

105
00:05:02,280 --> 00:05:04,240
 >> Move approval.

106
00:05:04,240 --> 00:05:05,240
 >> Okay.

107
00:05:05,240 --> 00:05:06,760
 All in favor?

108
00:05:06,760 --> 00:05:07,760
 >> Aye.

109
00:05:07,760 --> 00:05:08,760
 >> Aye.

110
00:05:08,760 --> 00:05:09,760
 All right.

111
00:05:09,760 --> 00:05:10,760
 Thank you.

112
00:05:10,760 --> 00:05:11,760
 >> Thank you.

113
00:05:11,760 --> 00:05:12,760
 >> All right.

114
00:05:12,760 --> 00:05:19,560
 The next item is consider recommending the adoption of an ordinance directing the publication

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00:05:19,560 --> 00:05:26,320
 for notice of intention to issue 84,770,000 in principle amount of certificates of obligation.

116
00:05:26,320 --> 00:05:27,320
 Good morning.

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00:05:27,320 --> 00:05:28,320
 >> Good morning.

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00:05:28,320 --> 00:05:29,680
 Randy Klingle, Treasury Manager.

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00:05:29,680 --> 00:05:33,560
 I also have one presentation for the second agenda item as well.

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00:05:33,560 --> 00:05:34,560
 >> Okay.

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00:05:34,560 --> 00:05:35,560
 >> So let's go together.

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00:05:35,560 --> 00:05:37,040
 >> So I'll call that one too.

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00:05:37,040 --> 00:05:38,040
 >> Yes, please.

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00:05:38,040 --> 00:05:41,360
 >> Consider recommending the adoption of an ordinance directing the publication of notice

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00:05:41,360 --> 00:05:48,040
 of intent to issue 177,560,000 in principle amount for certificates of obligation.

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00:05:48,040 --> 00:05:49,040
 >> Yes.

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00:05:49,040 --> 00:05:50,040
 >> Thank you.

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00:05:50,040 --> 00:05:51,040
 >> Thank you.

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00:05:51,040 --> 00:05:54,960
 >> I'm here just to have a brief presentation regarding the certificates of obligations

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00:05:54,960 --> 00:05:59,080
 requirement for notice of intent, and that is the first reason that we do them.

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00:05:59,080 --> 00:06:03,840
 The most important reason is that it's required by law and is required for us to publish this

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00:06:03,840 --> 00:06:07,680
 notice of intent in our local circulation, which for the City of Denton is the Denton

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00:06:07,680 --> 00:06:13,440
 Record Chronicle, and we will publish that twice in consecutive weeks as well as putting

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00:06:13,440 --> 00:06:19,760
 it on our website for the entire period time that is required.

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00:06:19,760 --> 00:06:24,480
 In addition to that, we must pass the bond parameter ordinance within 56 days of the

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00:06:24,480 --> 00:06:29,880
 first issuance of the post on the Denton Record Chronicle, and we'll be coming back to you

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00:06:29,880 --> 00:06:35,200
 with that bond parameter later in the summer.

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00:06:35,200 --> 00:06:39,160
 Most of the slides that you will see today are the project list from the utility funds,

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00:06:39,160 --> 00:06:44,920
 which are also in your backup, and will illustrate the budget amount in the capital project plan

140
00:06:44,920 --> 00:06:47,320
 versus what we're going to NOI with.

141
00:06:47,320 --> 00:06:56,160
 So our first budget here is the solid waste budget, which reduced their NOI budget notification

142
00:06:56,160 --> 00:06:59,640
 from the original budget by about $2.8 million.

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00:06:59,640 --> 00:07:04,560
 They're looking at pushing the cell formation out to future years, and I believe the other

144
00:07:04,560 --> 00:07:09,640
 thing was just making a priority on the fleet shop, so they moved some monies around there

145
00:07:09,640 --> 00:07:12,400
 for that purpose, for the notice of intent.

146
00:07:12,400 --> 00:07:13,400
 Question?

147
00:07:13,400 --> 00:07:14,400
 Yes, sir.

148
00:07:14,400 --> 00:07:15,400
 Could you go back?

149
00:07:15,400 --> 00:07:24,200
 I'll go back the other way, yes.

150
00:07:24,200 --> 00:07:25,200
 You want to push it?

151
00:07:25,200 --> 00:07:26,200
 There it goes.

152
00:07:26,200 --> 00:07:31,280
 What's the difference between new additions and replacements?

153
00:07:31,280 --> 00:07:34,940
 New additions and replacement vehicles, I don't have the extent of that.

154
00:07:34,940 --> 00:07:39,360
 I'm assuming purchasing new vehicles versus replacing old ones.

155
00:07:39,360 --> 00:07:40,360
 Is that correct, Eugene?

156
00:07:40,360 --> 00:07:47,360
 Or would you like to elaborate?

157
00:07:47,360 --> 00:07:56,600
 Good morning, Eugene McKinney, Deputy Director of Solid Waste and Recycling.

158
00:07:56,600 --> 00:08:01,960
 So a new addition is supported by growth of employees, growth of the community.

159
00:08:01,960 --> 00:08:05,580
 So as the community grows, we need more equipment to move forward, and the replacement is once

160
00:08:05,580 --> 00:08:10,620
 those vehicles reach their service life, where there are no, you know, the end of life, it's

161
00:08:10,620 --> 00:08:13,680
 time to get a new car, it's time to get a new truck, because if you keep them beyond

162
00:08:13,680 --> 00:08:17,880
 the service life, it costs us more and more to maintain them.

163
00:08:17,880 --> 00:08:22,480
 And do you have an estimated number on the vehicle replacements?

164
00:08:22,480 --> 00:08:28,160
 That three million or two million, how many vehicles are you thinking about replacing

165
00:08:28,160 --> 00:08:29,160
 with that number?

166
00:08:29,160 --> 00:08:30,160
 Yes.

167
00:08:30,160 --> 00:08:35,600
 And I don't have a number right off hand, you know, an estimate of, you know, just to

168
00:08:35,600 --> 00:08:36,600
 give me an idea.

169
00:08:36,600 --> 00:08:40,600
 Well, typically we see on the collection side, we can see anywhere from five to seven to

170
00:08:40,600 --> 00:08:43,040
 10 vehicles per year depending.

171
00:08:43,040 --> 00:08:47,720
 And what happens, there's some history behind it, because we forewent some opportunities

172
00:08:47,720 --> 00:08:51,280
 in the past, and we kept them longer, so we're trying to get back on track with that.

173
00:08:51,280 --> 00:08:55,080
 But something to keep in mind here with that overall cost is that the equipment prices

174
00:08:55,080 --> 00:08:59,760
 now look a lot different than they do now than five, 10 years ago, right?

175
00:08:59,760 --> 00:09:01,880
 So we took a huge spike.

176
00:09:01,880 --> 00:09:05,920
 I think we were using a 3% inflationary factor when we ordered from year over the year.

177
00:09:05,920 --> 00:09:10,320
 We've seen that number double and triple now just because of the microchip issues and getting

178
00:09:10,320 --> 00:09:13,240
 metal and different things factor into that large amount.

179
00:09:13,240 --> 00:09:14,240
 Thank you.

180
00:09:14,240 --> 00:09:15,240
 Thank you.

181
00:09:15,240 --> 00:09:16,240
 All right.

182
00:09:16,240 --> 00:09:23,520
 So solid waste, 4.1 million.

183
00:09:23,520 --> 00:09:29,880
 We moved to the water fund, which reduced their notice of intent budget to about $60

184
00:09:29,880 --> 00:09:34,280
 million, which is about $22.5 million reduction.

185
00:09:34,280 --> 00:09:38,880
 And most of this, generally speaking, is some of these projects, a lot of these projects

186
00:09:38,880 --> 00:09:43,160
 are still in design, so they couldn't move forward with, you know, tangible builds and

187
00:09:43,160 --> 00:09:44,560
 starting the projects.

188
00:09:44,560 --> 00:09:49,880
 And so that is the reason for the reduction for some of the water.

189
00:09:49,880 --> 00:09:54,040
 Wastewater projects remain the same from budget, so they're still on target for needing what

190
00:09:54,040 --> 00:09:57,560
 they thought during the budget process.

191
00:09:57,560 --> 00:10:02,980
 And last, we have the electric fund, which is reduced also about $22.5 million, and they

192
00:10:02,980 --> 00:10:08,480
 just did a complete revamp of reviewing their project list from the time that they created

193
00:10:08,480 --> 00:10:12,560
 the budget.

194
00:10:12,560 --> 00:10:17,480
 So in all the notice of intentions, we have $4.1 million for solid waste, and in the utility

195
00:10:17,480 --> 00:10:29,760
 system project list is total with the issuance cost and flexibility pricing included $177,560,000

196
00:10:29,760 --> 00:10:33,240
 for the notice of intent at this point.

197
00:10:33,240 --> 00:10:36,880
 And our next steps, if you recommend this, I will take it to council on April 2nd to

198
00:10:36,880 --> 00:10:40,480
 post the notice of intent and continue through that process.

199
00:10:40,480 --> 00:10:45,280
 Then I will be back in May to you, and then eventually to council for the bond parameters

200
00:10:45,280 --> 00:10:49,240
 ordinance with the last look of the last project, that will be the final list.

201
00:10:49,240 --> 00:10:54,120
 And then June is the potential sale with proceeds being received in late July.

202
00:10:54,120 --> 00:11:00,000
 Kind of our standard outline of the bond process.

203
00:11:00,000 --> 00:11:01,000
 Any questions?

204
00:11:01,000 --> 00:11:02,000
 Questions?

205
00:11:02,000 --> 00:11:03,880
 Go ahead, Billy.

206
00:11:03,880 --> 00:11:10,680
 Just on the DME side, you've got an NYI for feeder extensions and improvements that went

207
00:11:10,680 --> 00:11:11,680
 down substantially.

208
00:11:11,680 --> 00:11:15,200
 Is that due to availability of those materials?

209
00:11:15,200 --> 00:11:16,800
 I'm sure Jerry is coming up.

210
00:11:16,800 --> 00:11:17,800
 Am I right?

211
00:11:17,800 --> 00:11:18,800
 There we are.

212
00:11:18,800 --> 00:11:19,800
 Hi, Jerry.

213
00:11:19,800 --> 00:11:20,800
 Can everybody hear me?

214
00:11:20,800 --> 00:11:21,800
 Just making sure.

215
00:11:21,800 --> 00:11:26,200
 Jerry Felder, engineering manager at DME.

216
00:11:26,200 --> 00:11:29,520
 Much like the other departments, sometimes we look at the projects and we say, okay,

217
00:11:29,520 --> 00:11:32,720
 this is probably not going to start until a certain time.

218
00:11:32,720 --> 00:11:36,160
 We also, if you look at feeder extensions and improvements, some of that has to do with

219
00:11:36,160 --> 00:11:40,800
 the new line extension policy we have where the developers have to pay.

220
00:11:40,800 --> 00:11:44,760
 Some of that comes in the new residential commercial, but also the new line extension

221
00:11:44,760 --> 00:11:49,240
 policy affects the feeder extension improvements, which helps us reduce that down.

222
00:11:49,240 --> 00:11:50,240
 Okay.

223
00:11:50,240 --> 00:11:51,240
 All right.

224
00:11:51,240 --> 00:11:52,240
 Simple.

225
00:11:52,240 --> 00:11:53,240
 Thank you.

226
00:11:53,240 --> 00:11:56,640
 Other questions?

227
00:11:56,640 --> 00:12:00,400
 Do we have a motion to approve both these items?

228
00:12:00,400 --> 00:12:03,240
 Actually, we'll vote on them individually.

229
00:12:03,240 --> 00:12:04,240
 Thank you, Marcia.

230
00:12:04,240 --> 00:12:05,240
 Thank you.

231
00:12:05,240 --> 00:12:06,240
 You keep me so honest.

232
00:12:06,240 --> 00:12:07,240
 Okay.

233
00:12:07,240 --> 00:12:08,240
 Do we have a motion to approve item C?

234
00:12:08,240 --> 00:12:09,240
 So moved.

235
00:12:09,240 --> 00:12:10,240
 Devin, second?

236
00:12:10,240 --> 00:12:11,240
 Second.

237
00:12:11,240 --> 00:12:12,240
 Thomas, second.

238
00:12:12,240 --> 00:12:15,240
 All in favor, say aye.

239
00:12:15,240 --> 00:12:16,240
 Aye.

240
00:12:16,240 --> 00:12:23,040
 Do we have a motion to approve item D for the notice of intent to issue $177,560 million?

241
00:12:23,040 --> 00:12:24,040
 So moved.

242
00:12:24,040 --> 00:12:25,040
 Devin, moved.

243
00:12:25,040 --> 00:12:26,040
 And Billy, just second.

244
00:12:26,040 --> 00:12:27,040
 All in favor, say aye.

245
00:12:27,040 --> 00:12:28,040
 Aye.

246
00:12:28,040 --> 00:12:32,240
 Okay.

247
00:12:32,240 --> 00:12:33,240
 Management report.

248
00:12:33,240 --> 00:12:37,640
 Madam Chair, members of the board, today we have a couple of items for you.

249
00:12:37,640 --> 00:12:39,320
 The first one is on voting requirements.

250
00:12:39,320 --> 00:12:41,640
 I'll go ahead and turn it over to Marcella.

251
00:12:41,640 --> 00:12:42,640
 She can walk you through that.

252
00:12:42,640 --> 00:12:46,320
 Hi, I'm Marcella Lenn, senior deputy city attorney.

253
00:12:46,320 --> 00:12:51,840
 Just really quickly, just a little bit of education for both me and y'all is going through

254
00:12:51,840 --> 00:12:52,880
 the voting requirements.

255
00:12:52,880 --> 00:12:58,440
 So our code of ordinances, which was provided in the management report, requires that you

256
00:12:58,440 --> 00:13:01,120
 vote unless there's a conflict of interest.

257
00:13:01,120 --> 00:13:06,680
 So the only permissible abstention under our code is if there's a conflict of interest

258
00:13:06,680 --> 00:13:11,040
 and you fill out the conflict of interest affidavit.

259
00:13:11,040 --> 00:13:14,840
 If you have questions on something or you're not sure that you're ready to vote on it,

260
00:13:14,840 --> 00:13:18,960
 you can move to postpone, especially if the rest of the board feels similarly.

261
00:13:18,960 --> 00:13:22,040
 And then another option would obviously just be voting no.

262
00:13:22,040 --> 00:13:26,760
 So our votes are recorded and shared with city council, so city council is made aware

263
00:13:26,760 --> 00:13:32,720
 of kind of how the discussion happened at PUB, but just so you guys know, going forward,

264
00:13:32,720 --> 00:13:37,760
 we do require a yes or no vote unless there is an event of a conflict of interest.

265
00:13:37,760 --> 00:13:39,680
 Yes, Rob, go ahead.

266
00:13:39,680 --> 00:13:47,680
 Is the ethics board involved with any of the actions that you just mentioned?

267
00:13:47,680 --> 00:13:51,760
 Only if there's a question on the conflict.

268
00:13:51,760 --> 00:13:58,000
 So if the board member comes forward and submits the conflict of interest affidavit and we

269
00:13:58,000 --> 00:14:04,360
 review it and that's kind of submitted, I don't think the ethics board is involved with that

270
00:14:04,360 --> 00:14:07,760
 unless there's a question from another board member that wants an ethics opinion on whether

271
00:14:07,760 --> 00:14:12,960
 or not that is a conflict or if someone should have issued a conflict.

272
00:14:12,960 --> 00:14:18,040
 But if it's just kind of the ordinary course of we receive the conflicts affidavit, I don't

273
00:14:18,040 --> 00:14:23,600
 believe there's any involvement of the ethics board.

274
00:14:23,600 --> 00:14:28,680
 I have experienced the ethics board having a different thought concerning that and have

275
00:14:28,680 --> 00:14:34,320
 had even council members come directly to them for direction before they went anywhere.

276
00:14:34,320 --> 00:14:38,560
 And we're all officers according to the ethics board.

277
00:14:38,560 --> 00:14:42,480
 I just ask that because it's just a preparation.

278
00:14:42,480 --> 00:14:45,040
 Yeah, so that would be the ethics opinion process.

279
00:14:45,040 --> 00:14:51,680
 So I believe that the council members came to the ethics board to ask for an opinion.

280
00:14:51,680 --> 00:14:56,580
 But if there's just the ordinary course of submitting an affidavit, that doesn't prompt

281
00:14:56,580 --> 00:14:58,480
 ethics board action.

282
00:14:58,480 --> 00:14:59,480
 Thank you.

283
00:14:59,480 --> 00:15:02,240
 Excuse me, Madame Chair.

284
00:15:02,240 --> 00:15:09,440
 So I think this refers to an item that, as usual, I'm guilty of.

285
00:15:09,440 --> 00:15:14,720
 I abstain on a vote which I probably just should have voted nay because I abstain because

286
00:15:14,720 --> 00:15:17,800
 I didn't think there was enough information they should have brought up towards the board

287
00:15:17,800 --> 00:15:20,080
 without a description.

288
00:15:20,080 --> 00:15:22,680
 So my apologies, I'll just vote no next time.

289
00:15:22,680 --> 00:15:25,320
 I feel that way.

290
00:15:25,320 --> 00:15:28,160
 I had no conflict of interest in the matter.

291
00:15:28,160 --> 00:15:29,160
 No problem.

292
00:15:29,160 --> 00:15:30,160
 All right.

293
00:15:30,160 --> 00:15:33,920
 Well, I was just addressing and I'm pardon me, Mr. Chairman.

294
00:15:33,920 --> 00:15:39,960
 I was addressing just for conflict of in versus just should I voted yes or no, because it's

295
00:15:39,960 --> 00:15:50,560
 a very sensitive issue with that board.

296
00:15:50,560 --> 00:15:54,000
 Would it be helpful for us to provide some additional information on the ethics board

297
00:15:54,000 --> 00:15:55,940
 process?

298
00:15:55,940 --> 00:15:58,720
 I won't need it because I just got off the board.

299
00:15:58,720 --> 00:15:59,720
 Okay.

300
00:15:59,720 --> 00:16:01,480
 Thank you, Marcel.

301
00:16:01,480 --> 00:16:03,840
 Do you have any personnel expenses?

302
00:16:03,840 --> 00:16:04,840
 Yes.

303
00:16:04,840 --> 00:16:08,920
 So the next item, there was a question at the last meeting regarding personal expenses in

304
00:16:08,920 --> 00:16:10,980
 the forecast that we've shown you.

305
00:16:10,980 --> 00:16:15,200
 We did go back and looked at those numbers a little bit closer.

306
00:16:15,200 --> 00:16:21,160
 We did make a correction when simply when we pulled the report, we just captured some

307
00:16:21,160 --> 00:16:24,360
 accounting entries that shouldn't have been included so I've given you a table that shows

308
00:16:24,360 --> 00:16:25,840
 you what the correct number should be.

309
00:16:25,840 --> 00:16:29,920
 I think overall the variance is really about $1.2 million.

310
00:16:29,920 --> 00:16:32,460
 It's about a 5% increase.

311
00:16:32,460 --> 00:16:37,380
 Just so the board understands, certainly that number includes our annual budget that we

312
00:16:37,380 --> 00:16:41,320
 include for salary increases, about a 3% average.

313
00:16:41,320 --> 00:16:45,240
 Also there's additional personnel that go into those numbers.

314
00:16:45,240 --> 00:16:50,040
 So my hope is that the memo gives you a response to the question that you had.

315
00:16:50,040 --> 00:16:53,240
 Certainly if there's more detail or if you have other questions, I'd be happy to answer

316
00:16:53,240 --> 00:16:54,240
 that.

317
00:16:54,240 --> 00:16:57,520
 Certainly finances here as well if you have any other questions on that.

318
00:16:57,520 --> 00:16:59,840
 Keep going.

319
00:16:59,840 --> 00:17:00,840
 Okay.

320
00:17:00,840 --> 00:17:04,760
 So the next item is just future agenda items.

321
00:17:04,760 --> 00:17:08,560
 I know we've been talking about this, you know, budget, budget, budget, right?

322
00:17:08,560 --> 00:17:10,600
 So you have your dates on there.

323
00:17:10,600 --> 00:17:13,720
 If you're not going to be available during that time, if you could just let us know.

324
00:17:13,720 --> 00:17:18,120
 But certainly we want to give you plenty of heads up so you know when those dates are

325
00:17:18,120 --> 00:17:19,780
 coming.

326
00:17:19,780 --> 00:17:25,960
 And then new action items, the items that we had that we've worked through already is

327
00:17:25,960 --> 00:17:28,440
 the cost allocation analysis that's been completed.

328
00:17:28,440 --> 00:17:34,880
 Obviously we've provided you a response to DME personnel items and we have the EV item.

329
00:17:34,880 --> 00:17:39,520
 There is one additional new business item that I did want to inform the board.

330
00:17:39,520 --> 00:17:46,320
 And so at the last meeting the board took action on the electric rate ordinance.

331
00:17:46,320 --> 00:17:51,720
 If you recall, there was a section on delegation to the board.

332
00:17:51,720 --> 00:17:55,780
 When we took that to the council, the council opted to make a change to that.

333
00:17:55,780 --> 00:18:00,440
 You know, the charter, any type of rate increase expenditure associated with the utilities has

334
00:18:00,440 --> 00:18:02,100
 to come to the board.

335
00:18:02,100 --> 00:18:08,080
 So changes to the ECA, TCRF will still come to the board for your recommendation, but

336
00:18:08,080 --> 00:18:12,240
 the council still wanted that item to go to them formally on their agenda.

337
00:18:12,240 --> 00:18:15,600
 They asked that we placed that on their consent agenda.

338
00:18:15,600 --> 00:18:23,400
 And so based on council's direction last week, we did modify that ordinance slightly so that

339
00:18:23,400 --> 00:18:28,880
 the PUB doesn't have sole authority to make changes to the ECA and the TCRF.

340
00:18:28,880 --> 00:18:33,080
 So we wanted to just inform you of the council's action, but again, under the charter, we still

341
00:18:33,080 --> 00:18:34,480
 have to come to the board.

342
00:18:34,480 --> 00:18:39,640
 There has to still be a recommendation from the board to the council on any changes to

343
00:18:39,640 --> 00:18:46,040
 really anything in the electric rate ordinance and any rate ordinance for any of the utilities.

344
00:18:46,040 --> 00:18:50,080
 So with that, I'm happy to answer any questions that you may have.

345
00:18:50,080 --> 00:18:56,560
 Will that slow down the timing of bringing the ECA through or are you working that through

346
00:18:56,560 --> 00:19:00,680
 how it would come here and then go to the council?

347
00:19:00,680 --> 00:19:05,560
 There might be a slight delay, and we certainly conveyed that to the council and they understood

348
00:19:05,560 --> 00:19:06,560
 that.

349
00:19:06,560 --> 00:19:10,600
 And that was really the reason for them asking for us to put it on their consent agenda to

350
00:19:10,600 --> 00:19:16,020
 try to speed that process versus doing a work session or an individual item for consideration.

351
00:19:16,020 --> 00:19:20,320
 On the consent agenda, there could still be questions that could still be pulled for individual

352
00:19:20,320 --> 00:19:21,320
 consideration.

353
00:19:21,320 --> 00:19:22,320
 We'll be prepared.

354
00:19:22,320 --> 00:19:25,640
 But we don't anticipate that there'll be a big delay other than just simply kind of skin

355
00:19:25,640 --> 00:19:26,640
 desk scheduled.

356
00:19:26,640 --> 00:19:27,640
 Okay.

357
00:19:27,640 --> 00:19:28,640
 Thank you.

358
00:19:28,640 --> 00:19:29,640
 Other questions?

359
00:19:29,640 --> 00:19:30,640
 Oh, Rob, go ahead.

360
00:19:30,640 --> 00:19:35,440
 Could we consider, once we do our due diligence, we'd be one and done and the council wouldn't

361
00:19:35,440 --> 00:19:38,280
 have to bring anything back to us for reviewing?

362
00:19:38,280 --> 00:19:39,280
 Yeah.

363
00:19:39,280 --> 00:19:46,080
 So certainly with the ECA, if you recall, there is a plus or minus $5 million test that

364
00:19:46,080 --> 00:19:47,080
 goes into that.

365
00:19:47,080 --> 00:19:52,520
 So if the ECA balance doesn't fluctuate beyond, within that confines, there really is not

366
00:19:52,520 --> 00:19:54,280
 going to be any change.

367
00:19:54,280 --> 00:20:00,600
 Our hope is that we can set a rate that'll be good for at least six months, if not nine

368
00:20:00,600 --> 00:20:01,600
 or 12 months.

369
00:20:01,600 --> 00:20:06,520
 But again, depends on what's happening in the market, what types of issues we may have

370
00:20:06,520 --> 00:20:07,520
 with energy.

371
00:20:07,520 --> 00:20:11,160
 We probably won't see a whole lot of changes on the transmission side, because those are

372
00:20:11,160 --> 00:20:15,840
 really set annually, other than there's a slight change kind of at the beginning of

373
00:20:15,840 --> 00:20:18,040
 the year after we've set the budget.

374
00:20:18,040 --> 00:20:27,080
 But other than that, my hope is that we don't see a lot of variation, but it is an unknown

375
00:20:27,080 --> 00:20:28,080
 market.

376
00:20:28,080 --> 00:20:31,640
 And so I can't make that promise, but that's our hope.

377
00:20:31,640 --> 00:20:33,320
 Thank you, Madam Chair.

378
00:20:33,320 --> 00:20:34,320
 Welcome.

379
00:20:34,320 --> 00:20:35,320
 Other questions?

380
00:20:35,320 --> 00:20:36,320
 No?

381
00:20:36,320 --> 00:20:37,320
 All right.

382
00:20:37,320 --> 00:20:38,560
 We'll move on to concluding items.

383
00:20:38,560 --> 00:20:42,760
 Does any board member wish to say something to the public or have something put on a future

384
00:20:42,760 --> 00:20:45,400
 agenda?

385
00:20:45,400 --> 00:20:46,400
 I don't see any.

386
00:20:46,400 --> 00:20:47,400
 All right.

387
00:20:47,400 --> 00:20:48,400
 Move the adjournment.

388
00:20:48,400 --> 00:20:49,400
 Thank you, Devin.

389
00:20:49,400 --> 00:20:50,400
 We are adjourned.

390
00:20:50,400 --> 00:20:50,400
 Thank you.