1 00:00:00,000 --> 00:00:09,640 Okay, it is 9 o'clock and we have a quorum, so I'll call to order the Public Utilities 2 00:00:09,640 --> 00:00:14,120 Board for the City of Denton on Monday, September 9th, 2024. 3 00:00:14,120 --> 00:00:16,920 Were there any presentations requested, Cassie? 4 00:00:16,920 --> 00:00:17,920 No? 5 00:00:17,920 --> 00:00:18,920 All right. 6 00:00:18,920 --> 00:00:20,720 Then we'll go into Consent Agenda. 7 00:00:20,720 --> 00:00:24,440 Does a board member wish to pull any items on the Consent Agenda? 8 00:00:24,440 --> 00:00:25,440 Mr. Rybeck? 9 00:00:25,440 --> 00:00:28,240 I'd like to pull items A and B. 10 00:00:28,240 --> 00:00:31,120 Okay, any others? 11 00:00:31,120 --> 00:00:33,720 All right. 12 00:00:33,720 --> 00:00:39,280 Then do we have a motion to approve items C through F? 13 00:00:39,280 --> 00:00:41,360 Mr. Reiner and Pluck seconds. 14 00:00:41,360 --> 00:00:43,400 All in favor say aye. 15 00:00:43,400 --> 00:00:44,400 Aye. 16 00:00:44,400 --> 00:00:45,400 Motion carries. 17 00:00:45,400 --> 00:00:50,660 Item A. And just as a reminder, if you ever have questions, just go ahead and contact 18 00:00:50,660 --> 00:00:55,760 Tony and let him know what the question is so that the staff can be better prepared. 19 00:00:55,760 --> 00:00:56,760 Good morning. 20 00:00:56,760 --> 00:01:08,520 Sheldon Gatewood, Construction Project Manager with Capital Projects. 21 00:01:08,520 --> 00:01:13,560 So this plan maintenance turned into an emergency repair? 22 00:01:13,560 --> 00:01:14,560 Is that correct? 23 00:01:14,560 --> 00:01:15,560 That's wrong, sir. 24 00:01:15,560 --> 00:01:16,560 I'm sorry? 25 00:01:16,560 --> 00:01:17,560 Item A is... 26 00:01:17,560 --> 00:01:18,560 It's going to be... 27 00:01:18,560 --> 00:01:19,560 It's the road project. 28 00:01:19,560 --> 00:01:20,560 Oh, that's a road project. 29 00:01:20,560 --> 00:01:21,560 Oh, my apologies. 30 00:01:21,560 --> 00:01:22,560 Oh, you're fine. 31 00:01:22,560 --> 00:01:23,560 I was like... 32 00:01:23,560 --> 00:01:27,640 I took my glasses off. 33 00:01:27,640 --> 00:01:29,280 That was a mistake. 34 00:01:29,280 --> 00:01:30,280 The road project. 35 00:01:30,280 --> 00:01:35,800 So is this road project one that's part of the ongoing master plan for our road work 36 00:01:35,800 --> 00:01:37,600 or is it something new and different? 37 00:01:37,600 --> 00:01:38,960 It's something new and different. 38 00:01:38,960 --> 00:01:39,960 Okay. 39 00:01:39,960 --> 00:01:43,000 And what is the origin of the project? 40 00:01:43,000 --> 00:01:47,320 Basically the origin of the project is from when utilities went in, did their upgrades 41 00:01:47,320 --> 00:01:51,920 and then Atmos went in, did their upgrades and then they brought the OCI's ratings on 42 00:01:51,920 --> 00:01:53,680 the street a little bit. 43 00:01:53,680 --> 00:01:54,680 I'm sorry. 44 00:01:54,680 --> 00:01:55,680 OCI? 45 00:01:55,680 --> 00:01:56,680 Yes. 46 00:01:56,680 --> 00:01:57,680 That's the... 47 00:01:57,680 --> 00:02:02,360 Basically, the rating standards that street uses to warrant it for a new reconstruction, 48 00:02:02,360 --> 00:02:05,280 milling, overlay, micro-silling on any type of street. 49 00:02:05,280 --> 00:02:10,320 So it brought the OCI low enough to warrant it a full street reconstruction. 50 00:02:10,320 --> 00:02:11,320 Okay. 51 00:02:11,320 --> 00:02:16,360 So this reconstruction project was really driven by all this other utility work? 52 00:02:16,360 --> 00:02:17,360 Correct. 53 00:02:17,360 --> 00:02:18,360 Okay. 54 00:02:18,360 --> 00:02:23,080 What we weren't expecting in our overall plan for the roads for this to occur? 55 00:02:23,080 --> 00:02:24,080 Correct. 56 00:02:24,080 --> 00:02:28,680 Well, that's interesting. 57 00:02:28,680 --> 00:02:34,080 In that case, why were we unprepared for it in terms of our planning if we knew all this 58 00:02:34,080 --> 00:02:36,200 utility work was going to take place? 59 00:02:36,200 --> 00:02:41,080 It was mainly for those external factors as far as franchise utilities getting in there 60 00:02:41,080 --> 00:02:45,680 at the same time of when public utilities went in there because it simply is just going 61 00:02:45,680 --> 00:02:51,320 to be those permanent trench repairs that you see on any type of water utility, sewer 62 00:02:51,320 --> 00:02:52,560 utility project. 63 00:02:52,560 --> 00:02:57,160 But seeing the Atmos went in at the same time, it basically degraded the street a little 64 00:02:57,160 --> 00:03:02,560 bit more than was already sought after as far as utilities going in there. 65 00:03:02,560 --> 00:03:07,560 Is it unusual for multiple utilities to do their work at the same time or is that typically 66 00:03:07,560 --> 00:03:08,760 preferable? 67 00:03:08,760 --> 00:03:12,960 It's preferable for most utilities to do their work at the same time, but we still have those 68 00:03:12,960 --> 00:03:19,240 external factors as far as Atmos, they have a iron pipe that needs to be upgraded to something 69 00:03:19,240 --> 00:03:22,680 that poly or a low pressure system that needs to be upgraded to an intramarine pressure 70 00:03:22,680 --> 00:03:24,000 system. 71 00:03:24,000 --> 00:03:29,880 It's unforeseeable as far as what their plans have in the future, but once they do come, 72 00:03:29,880 --> 00:03:31,680 we have to adapt. 73 00:03:31,680 --> 00:03:35,240 So because they were changing out the line to a different material, was their work therefore 74 00:03:35,240 --> 00:03:36,240 more extensive? 75 00:03:36,240 --> 00:03:37,240 Yes, sir. 76 00:03:37,240 --> 00:03:42,840 So whenever they're changing out for new materials, say if they're going to low pressure to IP, 77 00:03:42,840 --> 00:03:47,800 they have to dig back to a certain extent and of course install a testing station. 78 00:03:47,800 --> 00:03:52,320 That way they can adapt to the new feed because it's a different technology that they use 79 00:03:52,320 --> 00:03:56,520 from having their older models to newer models, basically. 80 00:03:56,520 --> 00:03:57,520 Okay. 81 00:03:57,520 --> 00:03:59,960 Well, I don't have any other questions. 82 00:03:59,960 --> 00:04:00,960 Thank you. 83 00:04:00,960 --> 00:04:01,960 Awesome. 84 00:04:01,960 --> 00:04:02,960 Thank you. 85 00:04:02,960 --> 00:04:03,960 Go ahead. 86 00:04:03,960 --> 00:04:04,960 Go ahead. 87 00:04:04,960 --> 00:04:05,960 Thank you. 88 00:04:05,960 --> 00:04:12,680 So I live over there and once they found out that I was on this committee at Crosshairs, 89 00:04:12,680 --> 00:04:18,440 so the question is, do you have a projected timeframe when all this will be done and they'll 90 00:04:18,440 --> 00:04:20,480 be back to normal streets? 91 00:04:20,480 --> 00:04:25,880 So once we're given a notice to proceed for once to go to City Council next week, I plan 92 00:04:25,880 --> 00:04:31,080 to have Texas been in there, hopefully within next month getting a rock and rolling, no 93 00:04:31,080 --> 00:04:34,920 longer than 180 days from when their contract starts. 94 00:04:34,920 --> 00:04:36,440 So they're going to be on top of it. 95 00:04:36,440 --> 00:04:37,440 That'd be great. 96 00:04:37,440 --> 00:04:38,440 Yes, sir. 97 00:04:38,440 --> 00:04:39,440 Thank you. 98 00:04:39,440 --> 00:04:43,160 Where do the funds come from? 99 00:04:43,160 --> 00:04:44,560 Utilities. 100 00:04:44,560 --> 00:04:45,560 From utilities? 101 00:04:45,560 --> 00:04:46,560 Yes, sir. 102 00:04:46,560 --> 00:04:47,560 Okay. 103 00:04:47,560 --> 00:04:51,720 All the funds on this project come from utilities? 104 00:04:51,720 --> 00:04:55,120 It's coming from utilities and the small drainage section from drainage. 105 00:04:55,120 --> 00:04:57,000 Are you redoing the streets? 106 00:04:57,000 --> 00:04:58,000 Yes, sir. 107 00:04:58,000 --> 00:05:01,240 So utilities are paying for the street on this? 108 00:05:01,240 --> 00:05:04,240 Yes, sir. 109 00:05:04,240 --> 00:05:08,880 Okay. 110 00:05:08,880 --> 00:05:19,560 So whenever the planning is done ... Oh, sorry. 111 00:05:19,560 --> 00:05:24,360 When the planning was done for the budget for streets, the OCI didn't rank these to 112 00:05:24,360 --> 00:05:25,840 be included. 113 00:05:25,840 --> 00:05:30,600 And so there was no plan for streets to include these on the next batch that they're doing. 114 00:05:30,600 --> 00:05:36,060 And then whenever all the utilities got replaced, the streets became in pretty bad disrepair. 115 00:05:36,060 --> 00:05:42,280 So the utilities funding is what is being used to restore the streets. 116 00:05:42,280 --> 00:05:43,280 Okay. 117 00:05:43,280 --> 00:05:45,800 That's not a norm, correct? 118 00:05:45,800 --> 00:05:47,440 It's not normal. 119 00:05:47,440 --> 00:05:51,600 Because I mean, if you put a utility in a street, you're going to tear up the street. 120 00:05:51,600 --> 00:05:52,600 Right. 121 00:05:52,600 --> 00:05:56,000 And they usually come in and do their patches, and that's where you see the patches all through 122 00:05:56,000 --> 00:05:57,000 the street. 123 00:05:57,000 --> 00:06:01,020 So they would pay for the patches normally, not for the reconstruction of the street. 124 00:06:01,020 --> 00:06:05,680 But we wouldn't be able to leave the streets in disrepair until streets would be able to 125 00:06:05,680 --> 00:06:09,920 include it in a project, or in the planning budget part of it. 126 00:06:09,920 --> 00:06:13,560 So we needed to go ahead and get them taken care of. 127 00:06:13,560 --> 00:06:14,560 Okay. 128 00:06:14,560 --> 00:06:15,560 There we go. 129 00:06:15,560 --> 00:06:16,560 That's where it goes. 130 00:06:16,560 --> 00:06:17,560 All right. 131 00:06:17,560 --> 00:06:18,560 That helps. 132 00:06:18,560 --> 00:06:19,560 What's your name? 133 00:06:19,560 --> 00:06:20,560 Robin Names. 134 00:06:20,560 --> 00:06:21,560 Robin Names. 135 00:06:21,560 --> 00:06:22,560 Project Mike. 136 00:06:22,560 --> 00:06:23,560 Other questions? 137 00:06:23,560 --> 00:06:24,560 All right. 138 00:06:24,560 --> 00:06:31,680 Do we have a motion to approve Item A? 139 00:06:31,680 --> 00:06:32,680 So moved. 140 00:06:32,680 --> 00:06:36,360 I just moved, and we have a second. 141 00:06:36,360 --> 00:06:37,360 Second. 142 00:06:37,360 --> 00:06:38,360 Oh. 143 00:06:38,360 --> 00:06:39,360 Devin Taylor seconds. 144 00:06:39,360 --> 00:06:40,360 All in favor say aye. 145 00:06:40,360 --> 00:06:41,360 Aye. 146 00:06:41,360 --> 00:06:42,360 Thank you. 147 00:06:42,360 --> 00:06:43,360 Thank you. 148 00:06:43,360 --> 00:06:47,880 Item B. This one is the emergency repair. 149 00:06:47,880 --> 00:06:56,240 Good morning, Stephen Gay, Director of Water Utilities. 150 00:06:56,240 --> 00:06:57,240 Good morning. 151 00:06:57,240 --> 00:06:59,040 I'll ask my question again. 152 00:06:59,040 --> 00:07:01,920 Cut them out of order. 153 00:07:01,920 --> 00:07:06,480 So this planned maintenance turned into more of an emergency repair, I take it? 154 00:07:06,480 --> 00:07:07,480 Yes. 155 00:07:07,480 --> 00:07:11,960 We actually had filter number four, which we were planning to do the work on, and then 156 00:07:11,960 --> 00:07:13,280 16 failed. 157 00:07:13,280 --> 00:07:18,400 And so we didn't anticipate 16 failing in the heat of the summer when our demands were 158 00:07:18,400 --> 00:07:19,400 so aggressive. 159 00:07:19,400 --> 00:07:22,420 So that's what escalated this repair. 160 00:07:22,420 --> 00:07:24,840 So filter number four was already planned. 161 00:07:24,840 --> 00:07:25,840 It was already failed. 162 00:07:25,840 --> 00:07:28,280 So we planned to do the maintenance and repair on that. 163 00:07:28,280 --> 00:07:30,360 And then 16 failed. 164 00:07:30,360 --> 00:07:32,720 And so that escalated the need to get 16. 165 00:07:32,720 --> 00:07:35,840 We had the contractor here. 166 00:07:35,840 --> 00:07:40,700 It made good sense for us to move forward with that repair, and the tool that we have 167 00:07:40,700 --> 00:07:43,960 available to do that is that emergency declaration. 168 00:07:43,960 --> 00:07:44,960 Okay. 169 00:07:44,960 --> 00:07:50,000 So just curiosity on this case, since it is affecting all of us. 170 00:07:50,000 --> 00:07:51,000 Yes. 171 00:07:51,000 --> 00:07:52,080 By increased water restrictions. 172 00:07:52,080 --> 00:07:54,480 So how long will it take for these to be completed? 173 00:07:54,480 --> 00:07:57,400 Well, filter number four is back in service. 174 00:07:57,400 --> 00:08:02,080 The crew was here yesterday and while they're still here, they pulled out the under drains 175 00:08:02,080 --> 00:08:04,400 and they're doing their evaluation. 176 00:08:04,400 --> 00:08:08,600 We anticipate roughly two weeks before that filter is back in service and then we'll get 177 00:08:08,600 --> 00:08:12,360 back to full capacity, which is 50 million gallons a day. 178 00:08:12,360 --> 00:08:13,360 Okay. 179 00:08:13,360 --> 00:08:19,800 So this thing with these filters, are they something that are installed and still under 180 00:08:19,800 --> 00:08:20,800 warranty? 181 00:08:20,800 --> 00:08:21,800 Yes, sir. 182 00:08:21,800 --> 00:08:22,800 Great question. 183 00:08:22,800 --> 00:08:23,800 They are under warranty. 184 00:08:23,800 --> 00:08:29,480 Basically the warranty is expired, but the contractor has, actually a manufacturer has 185 00:08:29,480 --> 00:08:35,960 evaluated the installation and has deemed that the filters have failed due to faulty 186 00:08:35,960 --> 00:08:38,960 installation, so they're warranting their product anyway. 187 00:08:38,960 --> 00:08:43,360 So they're coming to the table and they're with financial resources to offset the cost 188 00:08:43,360 --> 00:08:44,360 of these repairs. 189 00:08:44,360 --> 00:08:49,080 So the cost that we see is actually only a portion of the total repair. 190 00:08:49,080 --> 00:08:50,080 Yes, sir. 191 00:08:50,080 --> 00:08:51,080 That is correct. 192 00:08:51,080 --> 00:08:53,760 So these filters, what is their typical life expectancy? 193 00:08:53,760 --> 00:08:57,520 Basically 20 years and so what we're going to be doing, we actually had already planned 194 00:08:57,520 --> 00:09:02,360 to do this, but we're going to be evaluating, we have to remove the filter material to do 195 00:09:02,360 --> 00:09:05,200 a comprehensive inspection and so we're going to start. 196 00:09:05,200 --> 00:09:10,020 We have 16 at Lake Louisville and so we're going to put them on a rotation to where we 197 00:09:10,020 --> 00:09:14,560 remove the filter media and we do a comprehensive inspection on those periodically and that 198 00:09:14,560 --> 00:09:15,560 will begin this year. 199 00:09:15,560 --> 00:09:18,280 It was already planned actually before the filters failed. 200 00:09:18,280 --> 00:09:19,280 Okay. 201 00:09:19,280 --> 00:09:23,080 So once you put them on a plan program, will you be doing a certain number of them each 202 00:09:23,080 --> 00:09:24,360 year in the off season? 203 00:09:24,360 --> 00:09:25,360 Yes, sir. 204 00:09:25,360 --> 00:09:26,360 Yes. 205 00:09:26,360 --> 00:09:30,240 And so we'll have, it'll be a comprehensive program, maintenance program for the filters. 206 00:09:30,240 --> 00:09:31,240 Okay. 207 00:09:31,240 --> 00:09:33,000 Do we have similar filters at Ray Roberts? 208 00:09:33,000 --> 00:09:34,000 No, sir. 209 00:09:34,000 --> 00:09:35,000 They're different filters. 210 00:09:35,000 --> 00:09:37,720 Well, they're different capacity. 211 00:09:37,720 --> 00:09:40,560 We have fewer at Lake Ray Roberts. 212 00:09:40,560 --> 00:09:41,560 It's a similar design. 213 00:09:41,560 --> 00:09:47,280 I believe we have underdrain systems there as well and we use GAC, Granule Activated 214 00:09:47,280 --> 00:09:56,720 Carbon at, no, we're using anthracite at Ray Roberts and we're shifting to GAC and we use 215 00:09:56,720 --> 00:10:01,520 Granule Activated Carbon over at Lake Louisville currently and that's what we'll be putting 216 00:10:01,520 --> 00:10:05,680 back into those filters, but at Ray Roberts we do that capacity improvement that we're 217 00:10:05,680 --> 00:10:07,040 working on right now. 218 00:10:07,040 --> 00:10:10,680 We're changing that filter media out to the GAC. 219 00:10:10,680 --> 00:10:13,060 And what is the GAC? 220 00:10:13,060 --> 00:10:14,060 Granule Activated Carbon. 221 00:10:14,060 --> 00:10:15,060 That was okay. 222 00:10:15,060 --> 00:10:16,060 You mentioned that. 223 00:10:16,060 --> 00:10:17,060 I'm sorry. 224 00:10:17,060 --> 00:10:18,060 We're changing that currently. 225 00:10:18,060 --> 00:10:19,060 Okay. 226 00:10:19,060 --> 00:10:21,840 Well, I don't have any further questions. 227 00:10:21,840 --> 00:10:22,840 Questions? 228 00:10:22,840 --> 00:10:23,840 Go ahead. 229 00:10:23,840 --> 00:10:24,840 Sure. 230 00:10:24,840 --> 00:10:25,840 Thank you. 231 00:10:25,840 --> 00:10:29,120 So I'd like to, I saw the memo and the photos. 232 00:10:29,120 --> 00:10:33,640 I guess since we're already talking about this, related to this expenditure, talk about 233 00:10:33,640 --> 00:10:34,640 this now. 234 00:10:34,640 --> 00:10:38,840 So the failure was, I was trying to understand what the failure was. 235 00:10:38,840 --> 00:10:42,200 I saw like there were some torn holes in the... 236 00:10:42,200 --> 00:10:48,840 Yeah, essentially the concrete wasn't level and then some media made it into the under 237 00:10:48,840 --> 00:10:53,920 drain and so we put pressure on the filters or the under drains two different ways, right? 238 00:10:53,920 --> 00:10:58,640 So you have filter media that sits on top of them and so the water percolates down through 239 00:10:58,640 --> 00:11:01,600 the filter media and then goes into a main trough. 240 00:11:01,600 --> 00:11:03,300 That's the filter process. 241 00:11:03,300 --> 00:11:05,720 To clean the filters, we have to do an air scour. 242 00:11:05,720 --> 00:11:11,320 So we basically push air up through the filter so we reverse the flow to break apart all 243 00:11:11,320 --> 00:11:15,480 the little particles that are stuck to the filters and then we wash the filters to make 244 00:11:15,480 --> 00:11:16,600 them clean. 245 00:11:16,600 --> 00:11:21,040 And so we're putting pressure on going down and pressure on coming up. 246 00:11:21,040 --> 00:11:27,280 And when that filter media, I guess, breaches the under drain, it gets caught in there and 247 00:11:27,280 --> 00:11:29,600 it increases the pressure. 248 00:11:29,600 --> 00:11:33,040 And so that's what caused those welds to fail. 249 00:11:33,040 --> 00:11:38,600 Okay, I couldn't tell by the images that there were failed welds. 250 00:11:38,600 --> 00:11:43,800 Yeah, because what it did is the gasket because the actual concrete was not level so the gasket 251 00:11:43,800 --> 00:11:44,800 failed. 252 00:11:44,800 --> 00:11:49,040 He had the material in there and then due to just the normal operation and the pressure 253 00:11:49,040 --> 00:11:54,120 fluctuations caused the welds to fail on some of the troughs or some of the laterals. 254 00:11:54,120 --> 00:11:59,120 Okay, and so the failure was in those lateral supports but the repairs to the concrete, 255 00:11:59,120 --> 00:12:00,120 which is... 256 00:12:00,120 --> 00:12:01,120 It's both. 257 00:12:01,120 --> 00:12:03,640 Yeah, we're repairing the concrete, getting everything nice and level. 258 00:12:03,640 --> 00:12:05,280 That's what they found yesterday when they pulled them out. 259 00:12:05,280 --> 00:12:08,920 They said, "Yeah, the concrete really needs to be addressed." 260 00:12:08,920 --> 00:12:09,920 Okay, thank you. 261 00:12:09,920 --> 00:12:10,920 Yes, sir. 262 00:12:10,920 --> 00:12:11,920 Further questions? 263 00:12:11,920 --> 00:12:15,200 Okay, do we have a motion to approve item B? 264 00:12:15,200 --> 00:12:16,200 So moved. 265 00:12:16,200 --> 00:12:17,200 And second? 266 00:12:17,200 --> 00:12:19,360 Oh, Mr. Rybeck seconds. 267 00:12:19,360 --> 00:12:20,720 All in favor say aye. 268 00:12:20,720 --> 00:12:21,720 Aye. 269 00:12:21,720 --> 00:12:22,720 Motion carries. 270 00:12:22,720 --> 00:12:28,160 Next item is, excuse me, consider approval of the August 26th, 2024 minutes. 271 00:12:28,160 --> 00:12:30,280 Were there any changes or corrections? 272 00:12:30,280 --> 00:12:31,800 I couldn't access the minutes. 273 00:12:31,800 --> 00:12:35,480 I don't know if they're available. 274 00:12:35,480 --> 00:12:39,520 When I go to view them online, it just gives me a message that the document's not available. 275 00:12:39,520 --> 00:12:51,480 Oh, I had to go in a different way, but I couldn't get to them, yeah. 276 00:12:51,480 --> 00:12:54,360 I would like to confirm that it's still the case. 277 00:12:54,360 --> 00:12:55,360 Okay. 278 00:12:55,360 --> 00:12:56,360 Nothing. 279 00:12:56,360 --> 00:12:57,360 You couldn't get to them either? 280 00:12:57,360 --> 00:12:58,360 Oh, I did. 281 00:12:58,360 --> 00:12:59,360 You're a genius. 282 00:12:59,360 --> 00:13:02,280 Well, so's Aaron. 283 00:13:02,280 --> 00:13:14,200 Okay, Susan just said we can delay it and do both minutes next time. 284 00:13:14,200 --> 00:13:17,000 Yeah, we don't. 285 00:13:17,000 --> 00:13:21,480 Okay, we'll just delay that until the next meeting. 286 00:13:21,480 --> 00:13:23,200 Thank you. 287 00:13:23,200 --> 00:13:28,800 The next item is consider recommending the approval of the solid waste fiscal year 2024-2025 288 00:13:28,800 --> 00:13:34,400 meeting and capital budgets. 289 00:13:34,400 --> 00:13:41,920 All right. 290 00:13:41,920 --> 00:13:45,120 Good morning, members of PUB, Madam Chair. 291 00:13:45,120 --> 00:13:47,880 My name's Matt Hamilton, budget manager for the city. 292 00:13:47,880 --> 00:13:53,840 Here today to present the budgets and rates for each of the utilities as well as the customer 293 00:13:53,840 --> 00:13:59,160 service fund, which we've historically presented with the utilities. 294 00:13:59,160 --> 00:14:03,480 So first, we have the solid waste fund. 295 00:14:03,480 --> 00:14:08,920 There are no changes to the solid waste fund from the information that you had previously 296 00:14:08,920 --> 00:14:10,020 seen. 297 00:14:10,020 --> 00:14:19,480 So as you may recall, we presented to the PUB in June and July and then presented to 298 00:14:19,480 --> 00:14:21,880 the city council in August. 299 00:14:21,880 --> 00:14:27,160 There were no changes that had come out of the presentation from the city council. 300 00:14:27,160 --> 00:14:34,400 So we've returned today just to present what we intend to bring forward on September 17th 301 00:14:34,400 --> 00:14:37,920 for budget adoption. 302 00:14:37,920 --> 00:14:42,680 So the solid waste fund, as you may recall, we're proposing a base rate increase of one 303 00:14:42,680 --> 00:14:44,720 and a half percent. 304 00:14:44,720 --> 00:14:52,200 In the fiscal year 2025 budget, we've included expenditures for closure, post closure, an 305 00:14:52,200 --> 00:15:00,080 increase in personnel cost for the anticipated citywide COLA and merit, as well as an increase 306 00:15:00,080 --> 00:15:06,280 in the debt service projected for 2025 from the 2024 CIP issuance. 307 00:15:06,280 --> 00:15:11,120 Supplemental request for the solid waste and recycling fund includes software for their 308 00:15:11,120 --> 00:15:16,880 vehicles in the amount of $121,500. 309 00:15:16,880 --> 00:15:22,640 So this is the same PERFORMA five year forecast that you saw previously. 310 00:15:22,640 --> 00:15:31,840 The proposed 2025 budget is $43,519,287. 311 00:15:31,840 --> 00:15:36,400 And this is just an overview of the total resources and expenditures that you had seen 312 00:15:36,400 --> 00:15:39,240 previously. 313 00:15:39,240 --> 00:15:49,240 So the solid waste five year capital plan, a total of $12,995,711, which primarily is 314 00:15:49,240 --> 00:15:57,840 debt funded and includes the projects that you see there. 315 00:15:57,840 --> 00:16:02,440 And then just to provide an overview of the proposed rate changes, commercial and residential 316 00:16:02,440 --> 00:16:09,800 cart service, a one and a half percent increase, $25 increase to the roll off rates for hauls, 317 00:16:09,800 --> 00:16:19,080 $2.92 increase on the rentals, again, $25 on the compactor rates, $1.05 increase on 318 00:16:19,080 --> 00:16:27,560 the rental for 30 cubic yard and $4.25 increase on the rental of a 40 cubic yard container. 319 00:16:27,560 --> 00:16:34,920 And then landfill rates proposed to increase $1.50 with the exception of shingles. 320 00:16:34,920 --> 00:16:41,600 And then commercial trash, also one and a half percent increase. 321 00:16:41,600 --> 00:16:50,520 So again, these are the same proposals that we previously brought to the board. 322 00:16:50,520 --> 00:16:54,840 And next steps will be budget adoption on September 17th. 323 00:16:54,840 --> 00:16:58,360 Are there any questions in regards to solid waste? 324 00:16:58,360 --> 00:16:59,360 Yes. 325 00:16:59,360 --> 00:17:05,160 Could you go back to the slide with the debt service on it? 326 00:17:05,160 --> 00:17:09,520 Excuse me. 327 00:17:09,520 --> 00:17:10,520 Is that the one? 328 00:17:10,520 --> 00:17:11,520 Maybe it's the next one. 329 00:17:11,520 --> 00:17:12,520 Nope. 330 00:17:12,520 --> 00:17:13,520 Oh, there you are. 331 00:17:13,520 --> 00:17:14,520 Okay. 332 00:17:14,520 --> 00:17:15,520 Thank you. 333 00:17:15,520 --> 00:17:20,440 I just want to take another look at it, you kind of went by it. 334 00:17:20,440 --> 00:17:23,860 Sure, sure. 335 00:17:23,860 --> 00:17:28,640 So we're projecting that our debt service ratio for solid waste is going to be declining 336 00:17:28,640 --> 00:17:30,040 over time? 337 00:17:30,040 --> 00:17:31,040 Yes. 338 00:17:31,040 --> 00:17:38,720 So the debt service coverage ratio just looks at the current year's cash flow and that current 339 00:17:38,720 --> 00:17:40,360 year's debt service. 340 00:17:40,360 --> 00:17:48,600 So whatever the revenues minus expenditures are in that year compared or, you know, over 341 00:17:48,600 --> 00:17:51,760 the amounts that we would owe in debt service. 342 00:17:51,760 --> 00:17:58,500 So some of that change is attributable to expenditures increasing in future years. 343 00:17:58,500 --> 00:18:02,680 Some of it is attributable to the debt service increasing in the future years. 344 00:18:02,680 --> 00:18:08,020 The city's policy is to maintain a debt service coverage ratio of at least one and a quarter 345 00:18:08,020 --> 00:18:13,060 percent, but we target one and a half or, you know, 1.5. 346 00:18:13,060 --> 00:18:18,880 So the solid waste fund is well above our policy targets for the debt service coverage 347 00:18:18,880 --> 00:18:19,880 ratio. 348 00:18:19,880 --> 00:18:27,140 Okay, and the revenue sufficiency requirement line item appears to just start next fiscal 349 00:18:27,140 --> 00:18:28,140 year. 350 00:18:28,140 --> 00:18:31,240 So have we not had that in previous years or? 351 00:18:31,240 --> 00:18:37,280 So the revenue sufficiency requirement line is the anticipated additional revenue that 352 00:18:37,280 --> 00:18:44,160 we will need in those future years, which is akin to rate increases. 353 00:18:44,160 --> 00:18:49,800 And now that may be base rate or it may be, as you saw, some of the other rates in terms 354 00:18:49,800 --> 00:18:55,440 of solid waste where, you know, we have landfill rates and other, you know, rates. 355 00:18:55,440 --> 00:18:59,560 So not specific to, you know, residential base rates necessarily. 356 00:18:59,560 --> 00:19:05,580 And that's something that we evaluate and look at very closely each year. 357 00:19:05,580 --> 00:19:12,620 The percentages that you see in '26 through '29 are just projections at this point. 358 00:19:12,620 --> 00:19:20,280 And so, you know, if there were to be changes in growth, if there were to be changes in 359 00:19:20,280 --> 00:19:25,680 the fund's expenditures, you know, we could see that percentage fluctuate. 360 00:19:25,680 --> 00:19:30,720 Well, I noticed as it went up, the debt service ratio went down. 361 00:19:30,720 --> 00:19:35,520 So I was just curious if there was some relationship about that to try to maintain the debt service 362 00:19:35,520 --> 00:19:38,160 ratio at a lower number. 363 00:19:38,160 --> 00:19:44,160 It is that and that is the one tool that we use in order to keep that debt service coverage 364 00:19:44,160 --> 00:19:48,220 ratio above the policy target. 365 00:19:48,220 --> 00:19:53,020 And so it all plays together. 366 00:19:53,020 --> 00:19:58,400 There's a revenue requirement to meet the expenditure needs as well as that debt service 367 00:19:58,400 --> 00:20:04,520 coverage ratio, which is calculated based on the revenue and expenditures. 368 00:20:04,520 --> 00:20:08,920 So okay, well, I'm not the expert financial guy, but thank you. 369 00:20:08,920 --> 00:20:09,920 Yeah. 370 00:20:09,920 --> 00:20:10,920 Yeah, of course. 371 00:20:10,920 --> 00:20:11,920 Other questions? 372 00:20:11,920 --> 00:20:12,920 Go ahead. 373 00:20:12,920 --> 00:20:20,640 I know we've seen this, the statistics in our previous budgeting meetings, and unfortunately, 374 00:20:20,640 --> 00:20:21,640 it's not in this. 375 00:20:21,640 --> 00:20:30,360 The last solid waste residential rate increase, was that in 2000? 376 00:20:30,360 --> 00:20:31,360 Do you know the year? 377 00:20:31,360 --> 00:20:35,520 I want to say, was it like about 12 years ago? 378 00:20:35,520 --> 00:20:41,960 I'll ask Brian to come up. 379 00:20:41,960 --> 00:20:46,400 Brian Burner, Solid Waste Director with City of Denton. 380 00:20:46,400 --> 00:20:47,400 You're correct. 381 00:20:47,400 --> 00:20:52,600 I've just celebrated my sixth anniversary with the City of Denton, and we have not had 382 00:20:52,600 --> 00:20:56,780 a rate increase in those six years, so it's been at least 10 years since we've realized 383 00:20:56,780 --> 00:20:57,780 a rate increase. 384 00:20:57,780 --> 00:21:03,560 You may remember that about five years ago, we actually cut rates by about 27%, and we've 385 00:21:03,560 --> 00:21:10,200 carried that through to this point, which really is why it necessitates the 1.5% increase 386 00:21:10,200 --> 00:21:11,200 moving forward. 387 00:21:11,200 --> 00:21:12,200 Okay. 388 00:21:12,200 --> 00:21:13,200 Thank you. 389 00:21:13,200 --> 00:21:14,200 Thank you. 390 00:21:14,200 --> 00:21:15,200 Other questions? 391 00:21:15,200 --> 00:21:16,200 All right. 392 00:21:16,200 --> 00:21:27,520 Do we have a motion to approve the solid waste fiscal year 2024-2025 operating cost? 393 00:21:27,520 --> 00:21:29,440 Operating capital budgets. 394 00:21:29,440 --> 00:21:30,440 Second. 395 00:21:30,440 --> 00:21:31,440 Devin, second. 396 00:21:31,440 --> 00:21:34,560 All in favor, say aye. 397 00:21:34,560 --> 00:21:35,560 Aye. 398 00:21:35,560 --> 00:21:36,560 Motion carries. 399 00:21:36,560 --> 00:21:42,320 Next item is consider recommending the approval of the water fiscal year 2024-2025 operating 400 00:21:42,320 --> 00:21:46,920 capital budgets. 401 00:21:46,920 --> 00:21:52,440 Okay. 402 00:21:52,440 --> 00:21:59,160 Matt Hamilton, budget manager, here to present the water budget rates for fiscal year 2025. 403 00:21:59,160 --> 00:22:05,080 So for the water funds, we are proposing a base rate increase of 3%. 404 00:22:05,080 --> 00:22:10,720 We again anticipate an increase in personnel costs, an increase in the debt service for 405 00:22:10,720 --> 00:22:16,320 fiscal year 2025, and for the supplemental request for the water funds, we have seven 406 00:22:16,320 --> 00:22:26,560 directors, one apprentice, and an assistant general manager, totaling nine FTEs for $957,431, 407 00:22:26,560 --> 00:22:31,120 which does include the cost of benefits. 408 00:22:31,120 --> 00:22:33,280 This is the water fund five-year forecast. 409 00:22:33,280 --> 00:22:37,980 There were no changes since the last time you saw this. 410 00:22:37,980 --> 00:22:50,480 So for fiscal year 2025, we are proposing a $55,635,824 million budget. 411 00:22:50,480 --> 00:22:54,880 The water fund five-year capital, CIP. 412 00:22:54,880 --> 00:23:03,880 For fiscal year 2025, we're proposing $130,426,000, which includes the various categories you 413 00:23:03,880 --> 00:23:09,080 see there. 414 00:23:09,080 --> 00:23:14,360 And in terms of the proposed rate changes, just to provide an overview, we're proposing 415 00:23:14,360 --> 00:23:21,840 a 3% increase for residential water service, a 3% increase on commercial water service. 416 00:23:21,840 --> 00:23:28,720 Both water services, just to note, that 3% increase includes both customers within the 417 00:23:28,720 --> 00:23:33,320 corporate limits and outside of the corporate limits of the city. 418 00:23:33,320 --> 00:23:38,760 The Upper Trinity Regional Water District wholesale rates, we had talked about this, adjusting 419 00:23:38,760 --> 00:23:49,560 the current wholesale water rate to $0.96 from $0.90 to align with prior contract language. 420 00:23:49,560 --> 00:23:57,280 And then the wholesale treated rate, as you may recall, the current rate at $0.61 is lower 421 00:23:57,280 --> 00:24:06,840 than the wholesale rate, and making an adjustment to the $1.25 to align with current market 422 00:24:06,840 --> 00:24:10,080 prices for cost recovery. 423 00:24:10,080 --> 00:24:18,720 The meters, increase in the fire hydrant meter deposit to $3,000, just to align with the 424 00:24:18,720 --> 00:24:25,440 cost of what the meter would cost if not returned. 425 00:24:25,440 --> 00:24:33,320 And then the backflow testing, increasing from $15.95 to $25, just to align with the 426 00:24:33,320 --> 00:24:37,000 actual cost of labor associated with the testing. 427 00:24:37,000 --> 00:24:42,600 And then the backflow service and non-City of Denton meter testing, adding those fees 428 00:24:42,600 --> 00:24:44,480 to the schedule. 429 00:24:44,480 --> 00:24:54,240 Commercial irrigation rates, adding a tiered system to the irrigation rates, and then increasing 430 00:24:54,240 --> 00:24:58,120 by 3%. 431 00:24:58,120 --> 00:25:05,720 Water tap and meter fees, making a change just to align with actual costs associated 432 00:25:05,720 --> 00:25:07,880 with those water taps. 433 00:25:07,880 --> 00:25:14,520 And then taps over four inches, charging those on a per project basis. 434 00:25:14,520 --> 00:25:21,640 So depending on the project and the various factors associated with the project, the cost 435 00:25:21,640 --> 00:25:27,020 may be a little lower or a little higher than the prior rates, but that would just be reflective 436 00:25:27,020 --> 00:25:34,280 of the actual cost associated with that project. 437 00:25:34,280 --> 00:25:39,240 And then next steps will be budget adoption on September 17th. 438 00:25:39,240 --> 00:25:42,040 Any questions on the water fund? 439 00:25:42,040 --> 00:25:48,560 Page four on the capital requirements. 440 00:25:48,560 --> 00:25:55,000 So over time, we actually expect our capital expenditures to go down in the next five years. 441 00:25:55,000 --> 00:26:01,600 Now, this year, obviously, plan improvements is a lot higher than we expect to see in future 442 00:26:01,600 --> 00:26:02,600 years. 443 00:26:02,600 --> 00:26:07,600 There's a couple other ones that replace lines this coming year, also higher. 444 00:26:07,600 --> 00:26:12,240 Is our history that we've ever seen lower costs on things moving forward, and how realistic 445 00:26:12,240 --> 00:26:14,880 is it to expect that? 446 00:26:14,880 --> 00:26:19,800 Yeah, so typically, well, I think a couple of things. 447 00:26:19,800 --> 00:26:27,400 One is that there are some very large needed infrastructure improvements within the water 448 00:26:27,400 --> 00:26:35,640 and wastewater systems that is reflected in this CIP that you see here, particularly the 449 00:26:35,640 --> 00:26:41,600 plant improvements of 40 to 50 million over the next several years, which is attributable 450 00:26:41,600 --> 00:26:48,040 to the growth that the city has experienced. 451 00:26:48,040 --> 00:26:54,080 In prior years, a historical amount would be 40 to 50 million. 452 00:26:54,080 --> 00:27:03,620 And so what you see here is you see the spike for this one-time infrastructure that's needed, 453 00:27:03,620 --> 00:27:12,020 but then a return back to that 40 or 50 million in typical infrastructure improvements. 454 00:27:12,020 --> 00:27:17,200 I have a question and a comment. 455 00:27:17,200 --> 00:27:22,240 This slide, 134.26, that's 130 million. 456 00:27:22,240 --> 00:27:23,240 It is. 457 00:27:23,240 --> 00:27:25,320 This is expressed in thousands. 458 00:27:25,320 --> 00:27:29,120 So that 130, 426 is millions. 459 00:27:29,120 --> 00:27:30,120 Yes, sir. 460 00:27:30,120 --> 00:27:31,120 I understand that. 461 00:27:31,120 --> 00:27:35,960 But nothing on this slide indicates that it's being expressed in thousands. 462 00:27:35,960 --> 00:27:37,680 Yes. 463 00:27:37,680 --> 00:27:38,680 My apologies. 464 00:27:38,680 --> 00:27:39,680 It should-- 465 00:27:39,680 --> 00:27:43,360 I would recommend you make an improvement. 466 00:27:43,360 --> 00:27:50,440 I wanted to go back to the untreated and treated water rates. 467 00:27:50,440 --> 00:27:54,520 So we're selling untreated wholesale water, or we're buying it? 468 00:27:54,520 --> 00:27:56,680 I was a little confused about that. 469 00:27:56,680 --> 00:27:57,680 Yeah. 470 00:27:57,680 --> 00:28:04,080 I'll ask Stephen to come up. 471 00:28:04,080 --> 00:28:08,920 Stephen Gay, Director of Water Utilities, Mr. Redbeck. 472 00:28:08,920 --> 00:28:12,020 Are we purchasing that water, or are we selling water? 473 00:28:12,020 --> 00:28:14,680 We sell both of those, our sales. 474 00:28:14,680 --> 00:28:20,000 So the raw water is sold to Upper Trinity Regional Water District, and we also sell the 475 00:28:20,000 --> 00:28:23,560 finished water to Upper Trinity Regional Water District. 476 00:28:23,560 --> 00:28:28,120 That finished water goes to serve the communities of Crum and Sanger. 477 00:28:28,120 --> 00:28:29,120 OK. 478 00:28:29,120 --> 00:28:30,440 But we're selling it. 479 00:28:30,440 --> 00:28:31,440 We're not buying it. 480 00:28:31,440 --> 00:28:32,440 That is correct, sir. 481 00:28:32,440 --> 00:28:33,440 OK. 482 00:28:33,440 --> 00:28:34,440 I was just curious. 483 00:28:34,440 --> 00:28:35,440 I saw that number jump 105%. 484 00:28:35,440 --> 00:28:43,820 It's like, wow, is that a cost problem, or that's a business opportunity, I guess, on our part. 485 00:28:43,820 --> 00:28:46,240 So why the big jump on that? 486 00:28:46,240 --> 00:28:47,880 Well, we evaluated it. 487 00:28:47,880 --> 00:28:53,680 It's been relatively stagnant for 20 years. 488 00:28:53,680 --> 00:28:59,400 If you go back to the '80s, that's what the rate was for finished water. 489 00:28:59,400 --> 00:29:07,080 And the organization hadn't re-evaluated it until recently, and we looked at our cost. 490 00:29:07,080 --> 00:29:09,080 And that's our preliminary adjustment. 491 00:29:09,080 --> 00:29:13,560 We're going to be doing a cost of service study this year, which is going to dig more 492 00:29:13,560 --> 00:29:18,160 deeply into that number to make sure that we ensure full cost recovery for whatever 493 00:29:18,160 --> 00:29:19,440 we sell. 494 00:29:19,440 --> 00:29:22,880 And what percentage of our water are we selling in those two categories? 495 00:29:22,880 --> 00:29:27,440 It's roughly, on average, is about a million gallons a day, is what we sell to those two 496 00:29:27,440 --> 00:29:28,440 communities. 497 00:29:28,440 --> 00:29:30,480 Which would be what percentage of our total? 498 00:29:30,480 --> 00:29:38,520 Well, we do 50 million gallons a day as our treatment capacity, 17 million gallons a day 499 00:29:38,520 --> 00:29:43,720 as our average daily demand, so 1/17 of that. 500 00:29:43,720 --> 00:29:47,400 So 8% or 9%, something in that range. 501 00:29:47,400 --> 00:29:48,400 Yeah. 502 00:29:48,400 --> 00:29:49,400 OK. 503 00:29:49,400 --> 00:29:50,400 Thank you. 504 00:29:50,400 --> 00:29:51,400 You're very welcome. 505 00:29:51,400 --> 00:29:52,400 I'm glad you asked me first. 506 00:29:52,400 --> 00:29:57,160 I was curious, are we the sole providers for the water for Krumm and Sanger? 507 00:29:57,160 --> 00:30:01,480 Krumm and Sanger also have groundwater wells that they rely on, but from a finished to 508 00:30:01,480 --> 00:30:07,360 treated water, surface water perspective, it's us, but they're not our customers. 509 00:30:07,360 --> 00:30:10,420 They're customers of the Opportunity Regional Water District. 510 00:30:10,420 --> 00:30:15,480 And so our contract is to sell the water to Opportunity, and then Opportunity is their 511 00:30:15,480 --> 00:30:16,480 provider. 512 00:30:16,480 --> 00:30:17,480 Middleman. 513 00:30:17,480 --> 00:30:18,480 Yes, sir. 514 00:30:18,480 --> 00:30:19,480 Thank you. 515 00:30:19,480 --> 00:30:20,480 Yes, sir. 516 00:30:20,480 --> 00:30:21,480 Two questions. 517 00:30:21,480 --> 00:30:25,120 The raw water, is that provided in the lake, or is that-- OK. 518 00:30:25,120 --> 00:30:32,760 Yeah, they have an intake on Lake Louisville, and that's where they draw their water from. 519 00:30:32,760 --> 00:30:35,000 And that's based off of the Dallas contract. 520 00:30:35,000 --> 00:30:41,240 So Dallas has their contract for raw water purchases, and in the contract that we had 521 00:30:41,240 --> 00:30:46,760 with Opportunity, it referenced the Dallas rate, and we would be 85% of the Dallas rate. 522 00:30:46,760 --> 00:30:50,240 So we can just adjust the rate as Dallas adjusts theirs. 523 00:30:50,240 --> 00:30:51,240 OK. 524 00:30:51,240 --> 00:30:58,200 And my second is maybe somewhat of a comment, but also I just want to make sure we address 525 00:30:58,200 --> 00:31:00,440 this in that cost of service study. 526 00:31:00,440 --> 00:31:01,440 Yes, sir. 527 00:31:01,440 --> 00:31:05,440 $1.25 per thousand is a very cheap rate for raw water. 528 00:31:05,440 --> 00:31:06,440 Yes, sir. 529 00:31:06,440 --> 00:31:07,440 Much less treated water. 530 00:31:07,440 --> 00:31:08,440 So I just want to make sure-- 531 00:31:08,440 --> 00:31:09,440 Yes, sir. 532 00:31:09,440 --> 00:31:18,200 This was our first shot at trying to realize that full cost recovery, and definitely the 533 00:31:18,200 --> 00:31:21,860 cost of service is being driven by this one as well. 534 00:31:21,860 --> 00:31:28,160 And I understand we can't necessarily shock those water departments by tripling their 535 00:31:28,160 --> 00:31:32,440 rate in a year, but we do want to make sure that in the long term we bring that up to 536 00:31:32,440 --> 00:31:34,560 full cost of service and full capital. 537 00:31:34,560 --> 00:31:38,480 Those pipelines out there will have to be replaced every 50 years, and all the pumping 538 00:31:38,480 --> 00:31:39,800 costs, and all that stuff. 539 00:31:39,800 --> 00:31:40,800 Yes. 540 00:31:40,800 --> 00:31:45,080 Well, and to be fair, in the Opportunity Regional Water District budget for the last five years, 541 00:31:45,080 --> 00:31:50,880 they've increased their rate to those two communities by 5%, anticipating a rate increase 542 00:31:50,880 --> 00:31:51,880 for us. 543 00:31:51,880 --> 00:31:56,120 So I think there's some bandwidth there. 544 00:31:56,120 --> 00:32:00,680 Yes, thank you. 545 00:32:00,680 --> 00:32:01,680 Further questions? 546 00:32:01,680 --> 00:32:02,680 All right. 547 00:32:02,680 --> 00:32:10,480 Do we have a motion to approve the water fiscal year 2024-25 operating in capital budgets? 548 00:32:10,480 --> 00:32:11,480 So moved. 549 00:32:11,480 --> 00:32:12,480 Okay. 550 00:32:12,480 --> 00:32:13,480 Kevin moved. 551 00:32:13,480 --> 00:32:14,480 Second? 552 00:32:14,480 --> 00:32:15,480 Second. 553 00:32:15,480 --> 00:32:16,480 Okay. 554 00:32:16,480 --> 00:32:17,480 Billy second. 555 00:32:17,480 --> 00:32:18,480 All in favor say aye. 556 00:32:18,480 --> 00:32:19,480 Aye. 557 00:32:19,480 --> 00:32:20,480 All right. 558 00:32:20,480 --> 00:32:25,960 Next one is consider recommending the approval of the wastewater fiscal year 2024-25 operating 559 00:32:25,960 --> 00:32:28,360 in capital budgets. 560 00:32:28,360 --> 00:32:31,200 Okay. 561 00:32:31,200 --> 00:32:33,840 So an overview for the wastewater funds. 562 00:32:33,840 --> 00:32:37,600 We are proposing an 11% increase in base rates. 563 00:32:37,600 --> 00:32:42,800 This rate is needed to meet debt service coverage and policy targets. 564 00:32:42,800 --> 00:32:48,240 We also are proposing an increase in the sale of treated affluent, as well as changing the 565 00:32:48,240 --> 00:32:56,280 tapping fee structure, similar to the fee structure that you had seen for the water 566 00:32:56,280 --> 00:32:57,280 fund. 567 00:32:57,280 --> 00:33:04,360 Expense projections, again, we anticipate an increase in personnel and operating expenditures, 568 00:33:04,360 --> 00:33:10,400 particularly in chemicals going into fiscal year 2025. 569 00:33:10,400 --> 00:33:15,160 For supplemental requests, the only request included for the wastewater fund is one water 570 00:33:15,160 --> 00:33:25,640 reclamation technician for a cost of $101,359,000 including benefits. 571 00:33:25,640 --> 00:33:29,840 This is an overview of the wastewater five-year forecast. 572 00:33:29,840 --> 00:33:33,320 This is the same forecast you had seen previously. 573 00:33:33,320 --> 00:33:39,640 The total budget for the wastewater fund is $40,022,601. 574 00:33:39,640 --> 00:33:48,240 And I'll just note that what you see here is just the wastewater component of it. 575 00:33:48,240 --> 00:33:52,300 The wastewater fund also includes the drainage division. 576 00:33:52,300 --> 00:33:58,120 So we just wanted to break out each of those components so you could see them independently. 577 00:33:58,120 --> 00:34:04,700 So the drainage division, not much change here or no change since you saw it previously, 578 00:34:04,700 --> 00:34:08,340 but just year over year, there's very little change. 579 00:34:08,340 --> 00:34:18,080 The proposed budget for drainage is $5,639,563. 580 00:34:18,080 --> 00:34:26,400 And here's just a combined look at both wastewater fund components, wastewater and drainage together. 581 00:34:26,400 --> 00:34:31,360 So the total of the wastewater funds that we will bring forward to council and for your 582 00:34:31,360 --> 00:34:41,780 consideration today is $45,662,164. 583 00:34:41,780 --> 00:34:45,800 This is an overview of the wastewater five-year CIP. 584 00:34:45,800 --> 00:34:48,880 And this is in thousands. 585 00:34:48,880 --> 00:35:00,200 So a total of $10475,000,000. 586 00:35:00,200 --> 00:35:04,180 And then providing an overview of the wastewater proposed rates. 587 00:35:04,180 --> 00:35:11,920 So again, we are proposing an 11% increase to residential and commercial services, an 588 00:35:11,920 --> 00:35:18,640 increase in the sale of treated effluent rates from $1.67 to $2.50 per thousand gallons. 589 00:35:18,640 --> 00:35:26,760 And then the wastewater tap fees above four inches to be on a per project basis to align 590 00:35:26,760 --> 00:35:30,960 with the actual costs associated with those individual projects. 591 00:35:30,960 --> 00:35:38,720 And then an increase in the waste transportation manifest book, which is just reflective of 592 00:35:38,720 --> 00:35:44,200 the actual costs of printing and producing those books. 593 00:35:44,200 --> 00:35:49,080 And the next steps will be council. 594 00:35:49,080 --> 00:35:51,360 Any questions on the wastewater fund? 595 00:35:51,360 --> 00:36:00,920 Okay. 596 00:36:00,920 --> 00:36:07,000 So we're predicting and proposing an ending fund balance of a million dollars. 597 00:36:07,000 --> 00:36:11,760 So the drainage fund just pretty consistently is what I was looking at there. 598 00:36:11,760 --> 00:36:17,160 We do have a policy within drainage to maintain a million dollar reserve. 599 00:36:17,160 --> 00:36:21,720 And so every year we budget to meet that million dollar reserve. 600 00:36:21,720 --> 00:36:26,500 If there is anything above and beyond that million dollars, it's put toward one time 601 00:36:26,500 --> 00:36:28,240 capital projects. 602 00:36:28,240 --> 00:36:31,800 If not, then it's a use of this reserve. 603 00:36:31,800 --> 00:36:36,960 Typically drainage is pretty known and steady. 604 00:36:36,960 --> 00:36:42,880 And so it's plus or minus, you know, a couple hundred thousand if that each year. 605 00:36:42,880 --> 00:36:51,360 But there are quite a few, you know, drainage infrastructure needs that we know are coming. 606 00:36:51,360 --> 00:36:59,120 And so just having that reserve is important to, you know, maintain if there's any emergency 607 00:36:59,120 --> 00:37:00,120 types of situations. 608 00:37:00,120 --> 00:37:01,120 Oh, yeah. 609 00:37:01,120 --> 00:37:02,120 I remember that. 610 00:37:02,120 --> 00:37:07,400 And I'm pretty sure we did that when we instigated drainage fees in the city of Denver. 611 00:37:07,400 --> 00:37:14,000 We just threw that number out there of a million dollars, and that was 15, 16 years ago or 612 00:37:14,000 --> 00:37:15,000 something, I believe. 613 00:37:15,000 --> 00:37:16,000 Yeah. 614 00:37:16,000 --> 00:37:19,760 But is that about how far deep we are into drainage fees now? 615 00:37:19,760 --> 00:37:25,040 Yes, the drainage fees have not been updated in a significant amount of time. 616 00:37:25,040 --> 00:37:26,040 Okay. 617 00:37:26,040 --> 00:37:27,040 Yeah. 618 00:37:27,040 --> 00:37:28,040 All right. 619 00:37:28,040 --> 00:37:31,040 I just wanted to clarify that. 620 00:37:31,040 --> 00:37:32,040 Thanks. 621 00:37:32,040 --> 00:37:33,040 Go ahead, Danny. 622 00:37:33,040 --> 00:37:41,800 Okay, so personnel services has a pretty steady just kind of future years, has about a 3% 623 00:37:41,800 --> 00:37:45,680 growth, which would probably cost a living, wage increases, that sort of thing. 624 00:37:45,680 --> 00:37:53,040 Now, if you go down to the capital projects, which I think is a couple more here, we have 625 00:37:53,040 --> 00:37:57,040 about $400 million being spent to build a wastewater treatment plant. 626 00:37:57,040 --> 00:38:03,120 It seems like that's likely going to lead to a staff of 15 or 20 increase. 627 00:38:03,120 --> 00:38:11,640 Is that just not currently in the forecasts or will that be from existing staff being 628 00:38:11,640 --> 00:38:13,680 relocated? 629 00:38:13,680 --> 00:38:23,840 So we will evaluate the operational costs and needs of any infrastructure that is completed. 630 00:38:23,840 --> 00:38:30,560 I think these plant improvements are anticipated to be completed, you know, a couple years 631 00:38:30,560 --> 00:38:34,160 from now I'll let Stephen discuss the timing of it. 632 00:38:34,160 --> 00:38:39,480 But that is something that we look at and include in the budget. 633 00:38:39,480 --> 00:38:47,000 What's reflected here are not those specific supplemental requests in years four and five, 634 00:38:47,000 --> 00:38:50,240 but they will be coming forward. 635 00:38:50,240 --> 00:38:55,120 So normally we've got this new plant coming online next year, we're going to do a supplemental 636 00:38:55,120 --> 00:38:57,120 for 12 new headcounts. 637 00:38:57,120 --> 00:38:59,840 Is that how normally in the budget process? 638 00:38:59,840 --> 00:39:05,880 Yeah, and well, Stephen Gade, Director of Water Utilities, the new plant will be, I guess, 639 00:39:05,880 --> 00:39:09,640 the modifications at Pecan Creek, so it's an existing facility. 640 00:39:09,640 --> 00:39:12,440 So we're adding that 5 million gallons of treatment capacity there. 641 00:39:12,440 --> 00:39:15,160 We'll be able to manage that with our existing staff. 642 00:39:15,160 --> 00:39:19,680 The newest plant will be up in the Clear Creek Basin and that's projected to be online within 643 00:39:19,680 --> 00:39:21,560 the next five to six years. 644 00:39:21,560 --> 00:39:26,040 So we'll see that staffing hit about that time. 645 00:39:26,040 --> 00:39:32,160 So it's like an extra $100 million, an extra $150 million, an extra $150 million. 646 00:39:32,160 --> 00:39:36,320 Those are primarily the Pecan Creek, not yet the Clear Creek? 647 00:39:36,320 --> 00:39:38,040 Not yet Clear Creek, right. 648 00:39:38,040 --> 00:39:44,440 We're building, currently we have a CMAR, Construction Manager Risk Project, out at 649 00:39:44,440 --> 00:39:50,760 Pecan Creek to add 5 million gallons of MBR technology at additional capacity at that 650 00:39:50,760 --> 00:39:51,760 plant. 651 00:39:51,760 --> 00:39:52,760 Okay, thank you. 652 00:39:52,760 --> 00:39:55,280 I was thinking that was the new plant, not the current, thank you. 653 00:39:55,280 --> 00:39:56,280 No, sir, not yet. 654 00:39:56,280 --> 00:40:02,000 We haven't even gotten into design on that yet, so, okay. 655 00:40:02,000 --> 00:40:05,960 And the capital plan includes all the new development that's going to be happening in 656 00:40:05,960 --> 00:40:07,760 Hunter and Cole? 657 00:40:07,760 --> 00:40:08,760 Yes. 658 00:40:08,760 --> 00:40:09,760 Yeah. 659 00:40:09,760 --> 00:40:10,760 Other questions? 660 00:40:10,760 --> 00:40:17,600 All right, do we have a motion to approve the Wastewater Fiscal Year 2024-25 Operating 661 00:40:17,600 --> 00:40:19,400 in Capital Budgets? 662 00:40:19,400 --> 00:40:22,400 Oh, you're moved? 663 00:40:22,400 --> 00:40:23,400 Second? 664 00:40:23,400 --> 00:40:24,400 Please, seconds. 665 00:40:24,400 --> 00:40:25,880 All in favor say aye. 666 00:40:25,880 --> 00:40:26,880 Aye. 667 00:40:26,880 --> 00:40:27,880 Opposed? 668 00:40:27,880 --> 00:40:28,880 Carries. 669 00:40:28,880 --> 00:40:35,640 All right, on to the Electrical Fiscal Year 2024-25 Operating in Capital Budgets. 670 00:40:35,640 --> 00:40:44,200 Okay, so the Electric Fund, we do have a couple of items that we wanted to update the board 671 00:40:44,200 --> 00:40:47,300 on since the last time this was presented. 672 00:40:47,300 --> 00:40:50,320 For the most part, it's the same, but there are a couple updates on the supplementals 673 00:40:50,320 --> 00:40:52,240 and rates. 674 00:40:52,240 --> 00:41:00,360 So as you previously saw, growth projections of 7.53% are anticipated for known residential 675 00:41:00,360 --> 00:41:01,640 and commercial projects. 676 00:41:01,640 --> 00:41:07,900 In Fiscal Year 2025, revenue projections, we are proposing a 1.5% base rate increase 677 00:41:07,900 --> 00:41:10,440 effective October 1st. 678 00:41:10,440 --> 00:41:16,880 And while keeping in mind that we do have a cost of service study that is ongoing and 679 00:41:16,880 --> 00:41:22,520 is anticipated to be completed later this fiscal year, early 2025, with the primary 680 00:41:22,520 --> 00:41:29,040 consideration of looking at those fixed costs, the facility and usage charges. 681 00:41:29,040 --> 00:41:33,320 On the expense side, as you had seen with the other funds, we're anticipating an increase 682 00:41:33,320 --> 00:41:38,960 in personnel costs for the citywide compensation, coal, and merit. 683 00:41:38,960 --> 00:41:44,160 And then in terms of supplemental requests, what we are proposing for the Electric Fund 684 00:41:44,160 --> 00:41:53,720 are nine new FTEs in Fiscal Year 2025, as well as a supplemental for equipment and supplies 685 00:41:53,720 --> 00:41:56,280 and GIS cloud service. 686 00:41:56,280 --> 00:42:07,080 So the total supplemental requests for each of those combined is $1,871,252. 687 00:42:07,080 --> 00:42:14,560 So taking a look at the revised position requests, DME evaluated the requests. 688 00:42:14,560 --> 00:42:19,760 As you may call, originally it was 16 and a half new FTEs and 25. 689 00:42:19,760 --> 00:42:23,800 DME revised that down to nine. 690 00:42:23,800 --> 00:42:31,520 And so the supplemental expense reduced from $3.7 million to the $1.8. 691 00:42:31,520 --> 00:42:40,760 And here you can see the proposed nine positions. 692 00:42:40,760 --> 00:42:47,200 The proposed rate summary-- so as you had seen previously, a 1 and 1/2% increase in 693 00:42:47,200 --> 00:42:56,560 base rates, but something that is new, that came up as we evaluated the full fee schedule, 694 00:42:56,560 --> 00:42:59,640 was pole attachment fees and making a revision to that schedule. 695 00:42:59,640 --> 00:43:05,480 So the pole attachment fees is an annual rental fee for telecommunication and cable providers 696 00:43:05,480 --> 00:43:09,000 when they attach to DME poles. 697 00:43:09,000 --> 00:43:15,800 And then also adding a schedule for wholesale transmission service, neither of these impact 698 00:43:15,800 --> 00:43:21,240 residential customers, but it's something that we wanted to update within the fee schedule 699 00:43:21,240 --> 00:43:27,680 as we made the other changes. 700 00:43:27,680 --> 00:43:31,480 So this is an overview of the electric five-year forecast. 701 00:43:31,480 --> 00:43:43,360 The only change is in the supplemental amounts, reducing from that $3.7 to the $1.8 million. 702 00:43:43,360 --> 00:43:49,680 And then an overview of the five-year CIP, which is unchanged from what the board saw 703 00:43:49,680 --> 00:43:54,400 earlier this summer. 704 00:43:54,400 --> 00:44:00,880 A total CIP of $75,022,730. 705 00:44:00,880 --> 00:44:11,080 And this one is not in thousands, but in actual. 706 00:44:11,080 --> 00:44:14,680 Next steps will be city council on September 17th. 707 00:44:14,680 --> 00:44:18,960 Are there any questions on the electric fund? 708 00:44:18,960 --> 00:44:24,200 Going back to page five, personnel cost in 2024 are $26 million, but we're adding nine 709 00:44:24,200 --> 00:44:25,200 FTEs in 2025. 710 00:44:25,200 --> 00:44:28,000 Why is the personnel cost lower? 711 00:44:28,000 --> 00:44:29,000 Yeah. 712 00:44:29,000 --> 00:44:31,640 So that's a really great question. 713 00:44:31,640 --> 00:44:36,360 There are some position movements occurring between funds. 714 00:44:36,360 --> 00:44:43,520 And so as you'll actually see in the customer service presentation that comes next, DME currently 715 00:44:43,520 --> 00:44:50,640 has dispatchers that will move from the electric fund into the customer service fund to be 716 00:44:50,640 --> 00:44:53,640 part of 311. 717 00:44:53,640 --> 00:45:01,280 And so there's just some internal position movements that account for that. 718 00:45:01,280 --> 00:45:02,280 Thank you. 719 00:45:02,280 --> 00:45:09,840 I had a question about, was it CIS or GIS on one of the slides? 720 00:45:09,840 --> 00:45:10,840 The software. 721 00:45:10,840 --> 00:45:11,840 Cloud service. 722 00:45:11,840 --> 00:45:12,840 Mm-hmm. 723 00:45:12,840 --> 00:45:16,640 Could you refresh my memory on what that is? 724 00:45:16,640 --> 00:45:17,640 Yeah. 725 00:45:17,640 --> 00:45:18,640 Ask Tony. 726 00:45:18,640 --> 00:45:20,920 So Tony went to DME general manager. 727 00:45:20,920 --> 00:45:30,840 So this is basically moving a lot of our systems out of servers that are here locally to the 728 00:45:30,840 --> 00:45:31,840 cloud. 729 00:45:31,840 --> 00:45:35,640 For the payment of that cloud service. 730 00:45:35,640 --> 00:45:39,880 So again, just to increase the social security for many of our systems that we have. 731 00:45:39,880 --> 00:45:43,120 So GIS, is that a company or a system name? 732 00:45:43,120 --> 00:45:48,200 Yeah, GIS specifically is the geographical information system. 733 00:45:48,200 --> 00:45:51,640 So it's how we map out our entire system. 734 00:45:51,640 --> 00:45:53,440 Thank you. 735 00:45:53,440 --> 00:45:55,760 Question. 736 00:45:55,760 --> 00:46:01,680 So just kind of me doing the math of all things being equal, so far we're looking at roughly 737 00:46:01,680 --> 00:46:08,040 a 17% overall increase in all the utilities, would that be a fair statement? 738 00:46:08,040 --> 00:46:09,040 I don't know. 739 00:46:09,040 --> 00:46:15,240 Well, I'm looking at one and a half, one and a half is three plus three plus 11 increases. 740 00:46:15,240 --> 00:46:16,840 In terms of rates. 741 00:46:16,840 --> 00:46:17,840 Yes. 742 00:46:17,840 --> 00:46:19,200 If you were to, yes. 743 00:46:19,200 --> 00:46:22,400 If you were to add those percentages together. 744 00:46:22,400 --> 00:46:25,720 Because people will ask and I'm just as a, you know, with everything being equal, we're 745 00:46:25,720 --> 00:46:28,320 looking at roughly an increase of that this year. 746 00:46:28,320 --> 00:46:29,320 Right. 747 00:46:29,320 --> 00:46:30,320 Yeah. 748 00:46:30,320 --> 00:46:31,320 No. 749 00:46:31,320 --> 00:46:32,320 I understand. 750 00:46:32,320 --> 00:46:33,320 The average. 751 00:46:33,320 --> 00:46:34,320 That's correct. 752 00:46:34,320 --> 00:46:35,320 Right. 753 00:46:35,320 --> 00:46:38,280 But I like the sum number because it catches people's attention. 754 00:46:38,280 --> 00:46:39,280 Yes. 755 00:46:39,280 --> 00:46:40,280 All right. 756 00:46:40,280 --> 00:46:41,280 Appreciate it. 757 00:46:41,280 --> 00:46:42,280 Yes. 758 00:46:42,280 --> 00:46:43,280 Thank you. 759 00:46:43,280 --> 00:46:47,000 I'd like to go back to the page with the personnel on it. 760 00:46:47,000 --> 00:46:53,960 One of those caught my eye. 761 00:46:53,960 --> 00:46:54,960 There it is. 762 00:46:54,960 --> 00:47:02,520 The electric technology business operations manager. 763 00:47:02,520 --> 00:47:08,160 So one of the things that, that we started doing this past year is handling a lot of 764 00:47:08,160 --> 00:47:15,080 our DME specific technology that was previously handled by the city's centralized tech services 765 00:47:15,080 --> 00:47:16,080 area. 766 00:47:16,080 --> 00:47:21,000 And so this, so this position is a manager to oversee the staff that we already have 767 00:47:21,000 --> 00:47:24,760 on hand and try to relieve one of the division managers that's been overseeing that we're 768 00:47:24,760 --> 00:47:26,040 in multiple hats. 769 00:47:26,040 --> 00:47:27,040 Okay. 770 00:47:27,040 --> 00:47:32,600 So basically DME is kind of going to take back ownership of managing those technology 771 00:47:32,600 --> 00:47:35,400 assets for those that are specific to DME only. 772 00:47:35,400 --> 00:47:40,040 So the technology that's across the board for the city will continue to be managed by 773 00:47:40,040 --> 00:47:43,240 the city's centralized with the city's IT group. 774 00:47:43,240 --> 00:47:44,240 Yes, sir. 775 00:47:44,240 --> 00:47:45,240 Yes, sir. 776 00:47:45,240 --> 00:47:47,680 Thank you. 777 00:47:47,680 --> 00:47:55,440 On this slide, excuse me, on page five, the DSCR is pretty low 1.1 in 2023, 1.23 in 2025, 778 00:47:55,440 --> 00:47:57,580 or excuse me, 2024. 779 00:47:57,580 --> 00:48:01,800 Has that impacted our interest rates and our capital projects that we're debt borrowing 780 00:48:01,800 --> 00:48:04,460 to pay for? 781 00:48:04,460 --> 00:48:12,920 So the debt service coverage ratio is a factor that is looked at by the, by the rating agencies. 782 00:48:12,920 --> 00:48:20,140 The debt service coverage ratio as it's looked at when it's reviewed by the rating agencies 783 00:48:20,140 --> 00:48:22,400 is for the utility system as a whole. 784 00:48:22,400 --> 00:48:27,480 And so they're looking not at necessarily specific funds or divisions. 785 00:48:27,480 --> 00:48:30,640 They're looking at the entire utility system. 786 00:48:30,640 --> 00:48:40,060 It is certainly a factor in the rating agency's ratings, which that rating directly impacts 787 00:48:40,060 --> 00:48:41,080 the interest rates. 788 00:48:41,080 --> 00:48:48,400 So the higher the debt service coverage ratio, you know, the more favorable the rating agencies 789 00:48:48,400 --> 00:48:54,960 would look at that and then therefore your interest rate may be, you know, may be lower. 790 00:48:54,960 --> 00:48:55,960 Right. 791 00:48:55,960 --> 00:49:03,080 So with it being 1.01% in 2023, 1.23 in 2024, it's a little bit lower than our other areas, 792 00:49:03,080 --> 00:49:05,920 which based on what you said could have an impact on rates. 793 00:49:05,920 --> 00:49:08,400 Did we experience an impact on our interest rates? 794 00:49:08,400 --> 00:49:09,400 We did not. 795 00:49:09,400 --> 00:49:18,840 So the utility system is currently rated A plus, which is high investment grade. 796 00:49:18,840 --> 00:49:27,880 The CEOs that the utilities issue under the city of Denton rating is double A and so, 797 00:49:27,880 --> 00:49:29,800 or excuse me, double A plus. 798 00:49:29,800 --> 00:49:35,740 So one notch below the highest rating, which is triple A. So both the city and the utility 799 00:49:35,740 --> 00:49:39,680 system are very highly rated. 800 00:49:39,680 --> 00:49:41,920 So, yeah. 801 00:49:41,920 --> 00:49:44,800 Yeah, why we need it. 802 00:49:44,800 --> 00:49:45,800 Right. 803 00:49:45,800 --> 00:49:51,240 Just a quick question, you may have touched on this earlier, the revenue sufficiency requirement 804 00:49:51,240 --> 00:49:56,640 kind of looks like it went from zero to one and a half this coming year and then it's 805 00:49:56,640 --> 00:49:59,040 going up around five, five and a half. 806 00:49:59,040 --> 00:50:01,640 What's driving that line item? 807 00:50:01,640 --> 00:50:07,080 Yeah, there's a couple of things that drive that. 808 00:50:07,080 --> 00:50:13,160 One is operating expenses, just in general operating expenses and debt service as well 809 00:50:13,160 --> 00:50:16,680 as the revenue projection. 810 00:50:16,680 --> 00:50:26,320 But in this case, a lot of what's driving it is the 31 million that was needed to be 811 00:50:26,320 --> 00:50:33,160 securitized this year over the next five years for the unanticipated purchase power expense 812 00:50:33,160 --> 00:50:38,400 in August of 20, last year, 23. 813 00:50:38,400 --> 00:50:44,840 And so what we anticipate is that the debt service as we forecast this out, you don't 814 00:50:44,840 --> 00:50:49,160 see here, but in 2030 actually dips back down. 815 00:50:49,160 --> 00:50:55,160 And so what you see here is you see these five and a half, five percent rate increases 816 00:50:55,160 --> 00:51:02,680 again as I had mentioned with the other funds, that's just an anticipated number at this 817 00:51:02,680 --> 00:51:07,240 point, but once we get through the cost of service study, we'll have a much better idea 818 00:51:07,240 --> 00:51:12,320 of whether or not that five and a half is something that we'll need to move forward 819 00:51:12,320 --> 00:51:13,320 with next year. 820 00:51:13,320 --> 00:51:21,160 So it's just a projection at this point, but we'll see where that cost of service study 821 00:51:21,160 --> 00:51:22,160 lands. 822 00:51:22,160 --> 00:51:27,200 Mr. Rubick, I'll just point out too that if you remember in February when we came to the 823 00:51:27,200 --> 00:51:31,520 board and to the council, we were projecting a five percent increase for 25 and we were 824 00:51:31,520 --> 00:51:35,360 able to work that down to one and a half. 825 00:51:35,360 --> 00:51:39,560 That's our commitment going forward is that I know these are big numbers, but we'll continue 826 00:51:39,560 --> 00:51:44,680 to look at that, look at our budgets, there's still a number of things that we can potentially 827 00:51:44,680 --> 00:51:45,680 do. 828 00:51:45,680 --> 00:51:49,240 As an example, one of the things that we're going to be doing is some of these nine positions, 829 00:51:49,240 --> 00:51:52,920 some of those we're going to hold them for a little bit, we're not going to hire them 830 00:51:52,920 --> 00:51:58,720 on October 1st, so we can finish out the year, see where we end up, so those are some strategies 831 00:51:58,720 --> 00:52:03,240 that we'll continue to put in place to make sure that we're being as responsible as we 832 00:52:03,240 --> 00:52:06,160 can with these rate increases. 833 00:52:06,160 --> 00:52:08,600 Thank you. 834 00:52:08,600 --> 00:52:09,600 Further questions? 835 00:52:09,600 --> 00:52:10,600 All right. 836 00:52:10,600 --> 00:52:16,440 Do we have a motion to approve the electric fiscal year 2024-25 operating and capital 837 00:52:16,440 --> 00:52:17,440 budgets? 838 00:52:17,440 --> 00:52:20,440 Mr. Rybak, Billy seconds. 839 00:52:20,440 --> 00:52:22,440 All in favor say aye. 840 00:52:22,440 --> 00:52:23,440 Aye. 841 00:52:23,440 --> 00:52:24,440 Opposed? 842 00:52:24,440 --> 00:52:26,280 Motion carries. 843 00:52:26,280 --> 00:52:32,160 Consider recommending the customer service fiscal year 2024-25 operating budget. 844 00:52:32,160 --> 00:52:40,400 Okay, this is the last fund to present to you today and it's short and sweet. 845 00:52:40,400 --> 00:52:47,440 So as you had seen previously, the customer service fund is proposing $230,200 in baseline 846 00:52:47,440 --> 00:52:53,560 and supplemental requests and we've listed out what those requests are. 847 00:52:53,560 --> 00:52:58,320 And then as we talked about a little earlier, there are some position movements in regard 848 00:52:58,320 --> 00:53:04,960 to the new 311 call center, so moving and reclassifying, which just means moving from 849 00:53:04,960 --> 00:53:12,560 the funds for DME dispatchers to the 311 call center, so the 311 call center in the current 850 00:53:12,560 --> 00:53:20,200 year has six employees and starting October 1st, they'll have 10. 851 00:53:20,200 --> 00:53:24,160 So this is an overview of the customer service five-year forecast. 852 00:53:24,160 --> 00:53:37,160 We're proposing a budget of $11,965,917 and they don't have a capital improvement program. 853 00:53:37,160 --> 00:53:39,920 And so that's all we have. 854 00:53:39,920 --> 00:53:40,920 Questions? 855 00:53:40,920 --> 00:53:42,600 Short and sweet. 856 00:53:42,600 --> 00:53:48,480 All right, do we have a motion to approve the customer service fiscal year 2024-25 operating 857 00:53:48,480 --> 00:53:49,480 budget? 858 00:53:49,480 --> 00:53:50,480 Second. 859 00:53:50,480 --> 00:53:54,600 And Devin, second, all in favor, say aye. 860 00:53:54,600 --> 00:53:55,600 Aye. 861 00:53:55,600 --> 00:53:56,600 Carries. 862 00:53:56,600 --> 00:53:57,600 Okay. 863 00:53:57,600 --> 00:54:05,000 The remaining items on the agenda, there's four more, which are the recommendation of 864 00:54:05,000 --> 00:54:10,880 the rate ordinances that will go to council for electric, water, wastewater, and solid 865 00:54:10,880 --> 00:54:11,880 waste. 866 00:54:11,880 --> 00:54:12,880 We don't have a presentation. 867 00:54:12,880 --> 00:54:15,880 Those were included in the presentations you just saw. 868 00:54:15,880 --> 00:54:19,360 All right, so we just need to take them each individually. 869 00:54:19,360 --> 00:54:20,360 Yes. 870 00:54:20,360 --> 00:54:27,040 All right, do we have a motion to approve establishing the rates and fees for wastewater 871 00:54:27,040 --> 00:54:33,760 service, repealing ordinance 22, 1857, and providing for repealer, providing for severability 872 00:54:33,760 --> 00:54:36,600 clause, and providing an effective date. 873 00:54:36,600 --> 00:54:38,280 So moved. 874 00:54:38,280 --> 00:54:39,280 So moved. 875 00:54:39,280 --> 00:54:40,280 Mr. Cheek moves. 876 00:54:40,280 --> 00:54:41,280 Second. 877 00:54:41,280 --> 00:54:42,440 Aaron Newquist seconds. 878 00:54:42,440 --> 00:54:44,000 All in favor, say aye. 879 00:54:44,000 --> 00:54:45,000 Aye. 880 00:54:45,000 --> 00:54:46,000 Opposed? 881 00:54:46,000 --> 00:54:47,000 Carries. 882 00:54:47,000 --> 00:54:49,160 Madam Chair, that was H right? 883 00:54:49,160 --> 00:54:50,720 I think we may have skipped G. 884 00:54:50,720 --> 00:54:51,720 Did I skip G? 885 00:54:51,720 --> 00:54:52,720 Oh, I'm sorry. 886 00:54:52,720 --> 00:54:53,720 That was H. 887 00:54:53,720 --> 00:54:54,720 Yes. 888 00:54:54,720 --> 00:54:55,720 Thank you. 889 00:54:55,720 --> 00:54:56,720 Thank you. 890 00:54:56,720 --> 00:54:57,720 All right. 891 00:54:57,720 --> 00:55:00,240 Let's go back to G. Consider recommending the adoption of ordinance for the city of 892 00:55:00,240 --> 00:55:05,440 Denton, Texas, establishing the rates for water service, providing for repealer, and 893 00:55:05,440 --> 00:55:09,720 providing for severability clause, and providing an effective date. 894 00:55:09,720 --> 00:55:10,720 So moved. 895 00:55:10,720 --> 00:55:11,720 Devin moves. 896 00:55:11,720 --> 00:55:12,720 Do we have a second? 897 00:55:12,720 --> 00:55:13,720 Any seconds? 898 00:55:13,720 --> 00:55:14,720 All in favor? 899 00:55:14,720 --> 00:55:15,720 Aye. 900 00:55:15,720 --> 00:55:16,720 Okay. 901 00:55:16,720 --> 00:55:17,960 G is approved. 902 00:55:17,960 --> 00:55:22,240 Consider recommending the adoption of the ordinance for the city of Denton, Texas, establishing 903 00:55:22,240 --> 00:55:27,080 the rates for electric service, providing for repealer, providing for severability clause, 904 00:55:27,080 --> 00:55:28,980 and providing for an effective date. 905 00:55:28,980 --> 00:55:30,840 Do we have a motion? 906 00:55:30,840 --> 00:55:32,800 Devin moved. 907 00:55:32,800 --> 00:55:33,800 Thomas seconds. 908 00:55:33,800 --> 00:55:35,800 All in favor, say aye. 909 00:55:35,800 --> 00:55:36,800 Aye. 910 00:55:36,800 --> 00:55:37,800 Opposed? 911 00:55:37,800 --> 00:55:38,800 Carries. 912 00:55:38,800 --> 00:55:42,640 Consider recommending the adoption of an ordinance for the city of Denton, Texas, establishing 913 00:55:42,640 --> 00:55:49,680 the rates for solid waste and recycling collection service, repealing ordinance 23-1736, providing 914 00:55:49,680 --> 00:55:55,160 for a repealer, providing for a severability clause, and providing an effective date. 915 00:55:55,160 --> 00:55:58,160 Do we have a motion? 916 00:55:58,160 --> 00:55:59,160 Okay. 917 00:55:59,160 --> 00:56:00,160 Thomas is going to move. 918 00:56:00,160 --> 00:56:01,160 Billy's going to second. 919 00:56:01,160 --> 00:56:02,160 All in favor? 920 00:56:02,160 --> 00:56:03,160 Say aye. 921 00:56:03,160 --> 00:56:04,160 Aye. 922 00:56:04,160 --> 00:56:05,160 Opposed? 923 00:56:05,160 --> 00:56:06,160 Motion carries. 924 00:56:06,160 --> 00:56:07,160 Management reports. 925 00:56:07,160 --> 00:56:08,160 Tony. 926 00:56:08,160 --> 00:56:15,960 Madam Chair, members of the PUB, so in your backup, we did include a memo from the water 927 00:56:15,960 --> 00:56:16,960 department. 928 00:56:16,960 --> 00:56:17,960 Stephen Gay is here. 929 00:56:17,960 --> 00:56:22,240 I know it was some of the questions that you may have had already came in an earlier item, 930 00:56:22,240 --> 00:56:27,080 but if there are additional questions regarding the memo that Stephen provided, he's still 931 00:56:27,080 --> 00:56:28,080 here. 932 00:56:28,080 --> 00:56:33,160 Happy to have him come up here and answer your questions. 933 00:56:33,160 --> 00:56:36,960 With the water restrictions that we're on now, has there been any enforcement action 934 00:56:36,960 --> 00:56:43,440 taken and if so, do we know the impact of that enforcement? 935 00:56:43,440 --> 00:56:48,840 Stephen Gay, Director of Water Utilities, no, we have not enforced those restrictions. 936 00:56:48,840 --> 00:56:52,380 Thank you. 937 00:56:52,380 --> 00:56:57,960 Just to repeat the question, how soon do we anticipate the current restriction to be lifted? 938 00:56:57,960 --> 00:57:02,680 Once the filter number 16 is fully back in service, so within two weeks. 939 00:57:02,680 --> 00:57:04,360 Dispute, possibly, two weeks. 940 00:57:04,360 --> 00:57:05,360 Yes, sir. 941 00:57:05,360 --> 00:57:06,360 Thank you. 942 00:57:06,360 --> 00:57:10,240 And the recent rain helped. 943 00:57:10,240 --> 00:57:12,440 Yes, it did. 944 00:57:12,440 --> 00:57:14,640 Yes, sir? 945 00:57:14,640 --> 00:57:19,040 So I've been following along on the Waterwise Denton site. 946 00:57:19,040 --> 00:57:24,520 I've been really impressed that every morning, I think it's by 8 a.m., you have updated with 947 00:57:24,520 --> 00:57:26,760 the previous day's stats and it's been really good. 948 00:57:26,760 --> 00:57:33,720 We were bouncing up in the stage trigger drought restrictions until the rain came and we had 949 00:57:33,720 --> 00:57:38,280 a significant, I don't know, 8 million dollar or 8 million or 6 million gallon decrease. 950 00:57:38,280 --> 00:57:42,760 I don't know how big it is, but it's a big drop on the chart and you could see it daily. 951 00:57:42,760 --> 00:57:49,380 It was really, I really appreciate that data being available to the public, almost live, 952 00:57:49,380 --> 00:57:50,380 like the next morning. 953 00:57:50,380 --> 00:57:51,380 You're very welcome. 954 00:57:51,380 --> 00:57:57,240 And our business partners at TWU and UNT and our parks departments really helped out as 955 00:57:57,240 --> 00:58:05,640 well because they significantly curtailed their use. 956 00:58:05,640 --> 00:58:11,240 I think it's about a 15 million gallon decrease from the peak to a few days ago during most 957 00:58:11,240 --> 00:58:12,240 of the rain. 958 00:58:12,240 --> 00:58:16,240 So that's a really significant change and it's really great to see it live, not hear 959 00:58:16,240 --> 00:58:19,120 about it a month later or that kind of thing. 960 00:58:19,120 --> 00:58:24,240 Those reports come out every morning at 7 a.m. so then we turn them right around. 961 00:58:24,240 --> 00:58:28,280 Well, I would like to thank you, sir, for that. 962 00:58:28,280 --> 00:58:32,600 I was unaware it was available at the City of Denton website. 963 00:58:32,600 --> 00:58:33,600 It's Discuss Denton. 964 00:58:33,600 --> 00:58:36,600 We have our own site. 965 00:58:36,600 --> 00:58:42,360 All right, so the next item is just future agendas. 966 00:58:42,360 --> 00:58:44,120 It's all blank. 967 00:58:44,120 --> 00:58:45,120 Don't think that we're not going to have meetings. 968 00:58:45,120 --> 00:58:46,120 We will. 969 00:58:46,120 --> 00:58:49,760 We're going to try to work on getting this populated a little bit better for the next 970 00:58:49,760 --> 00:58:50,760 meeting. 971 00:58:50,760 --> 00:58:52,480 I know there's a couple of items that will be coming for you. 972 00:58:52,480 --> 00:58:57,240 I want to give you a heads up that way you can plan to be here for those. 973 00:58:57,240 --> 00:58:59,240 And then new business action. 974 00:58:59,240 --> 00:59:03,760 There was a request at the last meeting on this item from Stephen. 975 00:59:03,760 --> 00:59:05,760 He's provided that. 976 00:59:05,760 --> 00:59:10,640 Solid Waste Department is also working on a question regarding card audits and they're 977 00:59:10,640 --> 00:59:16,680 planning to have that ready for the Board on the 14th of October and then still following 978 00:59:16,680 --> 00:59:20,280 up with Fleet on the one outstanding question on the EV vehicles. 979 00:59:20,280 --> 00:59:23,960 But with that, happy to answer any questions you have or if there's anything else you'd 980 00:59:23,960 --> 00:59:26,960 like to request. 981 00:59:26,960 --> 00:59:31,520 All right, I guess not. 982 00:59:31,520 --> 00:59:32,520 Concluding items. 983 00:59:32,520 --> 00:59:36,360 Does any Board member wish to make a statement to the public or have a future agenda item 984 00:59:36,360 --> 00:59:37,360 added? 985 00:59:37,360 --> 00:59:44,160 Seeing none, it is -- oh, 959. 986 00:59:44,160 --> 00:59:50,640 Motion to adjourn.