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 Good morning. Good morning. Let's bring the public utility board meeting of Monday, July

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 28, 2025 to order. Are there any presentations from the public? There are not. We will move

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 on to the consent agenda. Would any board member like to remove any item from the consent

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 agenda? No? There's no beefs. So with that, I'll entertain a motion to approve the consent

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 agenda, as is. Second. Motion and a second. All those in favor, please say aye. Aye. Passes

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 unanimously. We're moving on to items for individual consideration. Item A, which is considered

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 to the approval of the July 14th minutes. Entertain a motion for that. We have a motion

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 and a second. Raider. Plot. All those in favor, please say aye. Aye. Any opposed? Unanimously

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 pass. Item B, consider recommendation, recommending adoption of an ordinance of the City of Denton

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 at Texas Home Rule Municipal Corporation authorizing the approval of the first amendment to a professional

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 services agreement with the City of Denton and Kimley Horn. This is for the additional

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 engineering design and construction phase for the Pecan Creek Wastewater Treatment Plant,

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 Water Reclamation Plant. Good morning. Jason Donnell, Water Utilities Project Manager.

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 Today for consideration, we have a design contract amendment with Kimley Horn and Associates

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 for the Pecan Creek Water Reclamation Plant design expansion to 30MGD. The current plant

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 was built in 1961 and has a capacity of 21 million gallons per day, is currently operating

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 up to 85% of its capacity. TCEQ7090 rule states that once you reach 75% capacity, you need

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 to be in design for expansion. Once you reach 90, you need to be in construction. Since

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 we have hit that back in 2023, this particular contract was awarded to Kimley Horn through

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 PUB and council in May and June of '23. As part of that, we had to increase our discharge

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 limits with a two-stage permit up to 30MGD. Currently that is complete and ready to go.

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 At the beginning of this, there was a condition assessment performed of the existing plant

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 to develop scoring criteria for infrastructure and equipment to make sure we were in compliance

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 regulatory or out to prove either way and to make recommendations to move forward. Comparing

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 the rehabilitation of the existing plant to building a new plant, there is an estimated

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 cost savings of approximately $133 million, in which it was recommended to the city to

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 move forward and build a completely new plant at 30MGD. This chart is a cost breakdown of

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 that exercise showing that rehabbing the plant is approximately $82.5 million. The 5MGD expansion

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 up to 389.5, connecting the two plants together is about 12.5, after which the rehab portion

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 would need to be replaced relatively soon due to its age, expanding that 21MGD to new.

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 But the $636.7 million estimate completion in July of 2034, whereas rebuilding the new

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 plant, we would carry about $5.8 million to maintain existing infrastructure while building

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 the new one for 498, a total of $503.8, completion about two and a half years earlier in December

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 of 2031. The current contract includes a sewer interceptor, headworks bar screen, 5MGD MBR,

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 solids handling UV disinfection, and a 30 million gallon equalization basin, which is

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 basically a giant pond. We're at 14.952 million. The recommended amendment includes an additional

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 25MGD MBR to make us a total of 30MGD. It will add the biological nutrient removal to

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 the project, some aerobic digesters, a non-pot water system for reuse, chemical feed system

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 and operations and scatability will be included, and emergency generators. The amendment also

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 includes the contract administration from Kimley-Horn, our resident project representative

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 from Kimley-Horn, which will represent the city, and environmental assessment services

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 to help the city on the environmental side, for a total of $33.792500. Any questions?

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 Thank you.

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 I know you'll have some. I heard you talking a minute ago.

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 Mr. Rayner. I'd like to talk about more of my Fortalean real estate. What is the footprint

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 on that particular site?

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 The whole site?

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 No, the new one.

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 In other words, the new plant, if we vote for this, is it a two acre size, is it three

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 acre, five acres?

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 It's approximately 30 acres. The existing plant is on about 40. The total plant with

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 the basins and everything is 180 acres. The actual treatment portion is on a little over

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 40. This portion will be about 30, just south of it, in an open area. The old plant will

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 later be demoed, and that will be open. All of that is city owned property by the water

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 reclamation plant. It's available.

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 Thank you. So the 40 acres, which will be leveled, then they could be used for their

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 whatever expansion.

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 The expansion would be the planning portion of it, yes, sir.

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 So that's 70 acres out of approximately, would you say, 130 acres that we have?

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 About 180 is what's being utilized. There's some equalization ponds further down for the

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 existing plant. They will be also re-dug and increased in size for increased emergency

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 capacity.

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 Thank you.

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 I knew it was coming. So I'm trying to remember, what was the original estimate of this project

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 cost when we approved the original design contract?

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 The original design contract in 2023, I believe there was an opinion of probable cost from

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 the design firm of $189 million. That was for the 5M GDMBR.

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 And so basically the retrofit is the surprise? Like the retrofit of the remaining 21?

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 The retrofit is a huge portion, the $82.5 million, just to limp it along, and then you're

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 basically double spending here, because you're rehabbing 60-year-old concrete, which you

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 can only rehab the exterior, not the interior. So it would have to be replaced for a better

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 discharge later. It's kind of double paying for it, yes, sir.

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 There were also a few more things added other than what you spoke of. There's a building

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 added, a new chemical feed non-pot system, and aerobic digesters due to the increase

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 to 25. Well, those are these round structures here, which will turn some of the solids into

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 gas, which can be reused.

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 And so this completely replaces the existing 40 acres of facility, this 30-acre facility?

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 Yes, sir. If you look in the picture here, the existing is this top left. The new is

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 this bottom part. It's a little bit smaller footprint. It completely replaces everything,

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 at which point the old one, there would be another project to demo the old one.

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 And this is just the nature of everything's more efficient now, requires less time in

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 process. You don't have to have as big of tanks, and that sort of thing.

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 You can discharge faster, and the quality of the water exiting is a bit higher quality.

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 So it's safer for the environment, too. That's the MBR technology.

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 Okay. Thank you.

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 Yes, sir.

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 I'm going back to the cost comparison. At what point did we start the consideration

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 of the new plant?

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 Over a rehabbing?

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 Yes.

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 I came on board here in January of '24. It was shortly thereafter when we met with exec

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 staff and our internal engineering team to go over the cost models. It was about that

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 time we started considering that. A few months later, with recommendations to the consultant,

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 that was the decision.

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 Okay. The cost savings, what was the original estimate? Back up a little bit. I'm sorry,

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 you said it a moment ago.

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 The original was $189 million. Back in 2023, it was a very early cost, opinion of probable

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 cost from the engineering firm.

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 Right. Okay. But 636 is what we think is the real number for the existing plant rehab,

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 right?

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 It's going to be as close as we can get.

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 Yes, sir.

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 That's your guess. That's your estimate.

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 That's a very difficult guess going 10 years out for the construction cost. That's as close

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 as we've been able to get to it. We're fairly confident we're within 10%.

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 Gotcha. Okay. That's all I got. Anybody else?

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 Extended life for the new one was the question.

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 The planned life for a new plant is 50 years. The planned equipment life is 30 years. All

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 of this can be extended with money. Better maintenance and replacing workwear parts can

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 extend that.

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 So the new plant, potentially 50 years, and then parts you said for 30?

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 Equipment, motors, and pumps. They have a planned life of 30.

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 The 50 years, just the shell itself.

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 Yes, sir.

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 So really, other than the cost of the shell, what we're looking at is the part or the years

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 for the part changes, really, wouldn't it be?

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 The whole lot of equipment, yes, sir.

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 Yeah. Okay. Thank you.

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 Okay. So any more questions on this?

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 Do we have approval?

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 We have a motion to approve.

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 Second.

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 And a second. Any further discussion? If not, all those in favor, please say aye.

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 Aye.

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 Any opposed? Doesn't appear to be. Passes unanimously.

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 All right. We're moving on to item C. Consider recommending adoption of an ordinance for

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 the city manager to execute a contract with RDO equipment for if over 50,000, we go to

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 a competitive bidding. The first one is 371,000 for approval.

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 I guess there's no, nobody's presenting anything.

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 That's all right.

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 Good morning, Brenda Haney. There is no-

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 I'm sorry, I read the wrong thing.

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 Okay, perfect. I thought that was on consent, so we did not want to bring it up.

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 That would be me. Thank you.

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 Yeah, perfect.

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 Just testing. Thank you very much.

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 Yeah, thank you. Yeah. Okay. I guess we're moving on to the fun part. This is item C.

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 Consider recommending approval of a solid waste fund fiscal year 2025-26 operating in

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 capital budget. There appears to be a presentation on this item.

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 Popcorn outside.

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 That's right.

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 All right. Good morning, Chair, members of the board, Matt Hamilton, ADF Finance, here

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 to present a number of presentations, each for the utilities, and then we also have some

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 items as well for you specific to rate recommendations as well. We provided just a printout for you,

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 which was the same as the backup information for each of these items, just so that it was

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 a little bit larger because we know some of the numbers on the screen can be a little

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 small and we had a request last week, or excuse me, at the prior meeting to provide the breakout

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 of the CIP projects, which is what that exhibit is, is the full list of the projects. Myself

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 and also the departments are here to answer any questions that you may have in regard

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 to the budget or in regard to those specific projects.

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 So starting with solid waste, as we had talked about at the last meeting, solid waste has

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 proposed a 4.2% increase to their budget for fiscal year 2026. However, there is no base

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 rate increase proposed for 2026. There are some minor changes to the rate ordinance that

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 we'll get into in another slide. As we went through the zero base budgeting process this

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 year, which was new to the city and we went through it citywide, solid waste identified

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 $980,000 in reductions, $212,000 in personnel by reducing the number of deputy directors

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 from 2 to 1, $209,000 in materials and supplies, $17,500 in maintenance and repair, $397,000

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 in operations, and $144,000 in fixed assets, which related to rehabbing the containers

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 rather than replacing them.

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 So proposed rate schedule updates, again, no base rate increase is proposed for solid

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 waste. However, we are proposing adding a category called front load, side load, shared

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 services to the rate schedule. These are existing charges for refuge and recycling but are not

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 currently clearly defined in the rate schedule, so you just create its own category and make

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 it clear that that's what the current rates are. And then clarifying that re-delivery

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 is part of the delivery service fee, and so this relates to primarily when there's a

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 disconnection in service and then solid waste re-delivers a cart to the property when the

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 service is resumed and then reducing the per item bulk collection limit from 10 to 5.

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 So taking a look at the five-year preliminary forecast, this is the same forecast that we

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 had reviewed at the prior meeting. The proposed fiscal year 2026 budget is $45,353,673. Again,

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 there is no -- I'm sorry, that's on the revenue side. Expenditures of $44,949,845 and no base

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 rate increase.

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 So the solid waste five-year capital plan for fiscal year 2026, the big project is the

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 organics program and the infrastructure associated with it. $7.2 million in vehicle replacements

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 and $448,000 in vehicle additions for a total of $21.7 million. $18.2 million of that being

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 debt funded and $3.4 million being revenue funded. As we talked about at the last meeting,

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 as you'll see in starting fiscal year 27, all of the vehicles will be revenue funded

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 and so we're making a concerted effort to revenue fund more of the capital program as

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 we move forward. Any questions on solid waste?

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 Mr. Reiner.

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 Slide number three. On the re-delivery, that would be on an existing client, gotten arrears,

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 it was closed, you removed it, but that's only for that existing client to have it back,

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 it's not for a new one coming in. That charge is not involved at all.

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 That's correct.

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 All right. Thank you.

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 One more on this slide. The bulk item collection, is it 10 items or 10 pickups down to five?

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 Items or pickups?

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 Items.

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 See, I knew I'd get you up there.

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 I'm sorry to get you up there all the way.

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 That was one of them.

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 Brenda Haney, Director of Solid Waste. Yes, we're reducing the number of items that we're

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 picking up at each location from 10 to five, starting with the next fiscal year.

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 Is that five per week or is that like five per-

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 It's per collection cycle, so it is per week.

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 The other thing in full disclosure, multifamily units are using a lot of this and what we've

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 asked them to do, what they've done has been very creative and they have multiple places

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 throughout their complex where they have 10 items and we've asked them to consolidate

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 it and put it at one location.

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 A lot of the intent behind this program was to facilitate the cleanup and maintenance

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 of some of those smaller units that didn't have on-site personnel to handle those items

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 and so we wanted to provide them an avenue for getting rid of those bulk items, particularly

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 when people are moving in and moving out.

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 What we found is the bigger units, bigger complexes that have the capacity and the staff

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 on board to help with that are taking advantage of the system a little bit.

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 I know for residential it's great because it prevents dumping because a lot of times

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 renters move out and they have some old furniture and instead of it ending up in the creek,

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 they just put it on the curb and it gets taken away once a year.

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 It's a balancing act of making sure that we get an appropriate number to accommodate

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 the needs of people and not encourage the illegal dumping of those items.

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 Thank you.

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 You're welcome.

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 Okay.

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 Thank you.

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 All right.

215
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 Thank you.

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 Those are the questions I believe that you have, the preliminary budget reductions.

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 Okay.

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 That says it.

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 That's fine.

220
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 Okay.

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 That's all I got.

222
00:19:42,800 --> 00:19:43,800
 Anybody else?

223
00:19:43,800 --> 00:19:44,800
 All right.

224
00:19:44,800 --> 00:19:45,800
 Anybody?

225
00:19:45,800 --> 00:19:46,800
 Entertain a motion to approve.

226
00:19:46,800 --> 00:19:47,800
 I'll move approval.

227
00:19:47,800 --> 00:19:48,800
 Second.

228
00:19:48,800 --> 00:19:49,800
 We have a motion and a second.

229
00:19:49,800 --> 00:19:50,800
 All those in favor please say aye.

230
00:19:50,800 --> 00:19:51,800
 Aye.

231
00:19:51,800 --> 00:19:52,800
 It's unanimous.

232
00:19:52,800 --> 00:19:53,800
 Thank you very much.

233
00:19:53,800 --> 00:20:00,320
 We're moving on to item D, water fund.

234
00:20:00,320 --> 00:20:03,440
 You read the whole thing, shouldn't I?

235
00:20:03,440 --> 00:20:08,600
 Consider recommending approval of the water fund fiscal year 2025-26 operating on the

236
00:20:08,600 --> 00:20:11,880
 capital budget.

237
00:20:11,880 --> 00:20:15,280
 Okay.

238
00:20:15,280 --> 00:20:20,760
 Matt Hamilton, ADF Finance, here to present the water proposed budget for fiscal year

239
00:20:20,760 --> 00:20:23,480
 2025-26.

240
00:20:23,480 --> 00:20:29,240
 The water budget has a total increase of 6.3% over the budget for last year.

241
00:20:29,240 --> 00:20:35,160
 What is being proposed is a 3% rate increase for residential and commercial as well as

242
00:20:35,160 --> 00:20:39,520
 industrial and we'll get into some slides that detail exactly what those rate increases

243
00:20:39,520 --> 00:20:40,520
 look like.

244
00:20:40,520 --> 00:20:47,600
 A 297% rate increase on the wholesale treated water which we'll see as well in the slides.

245
00:20:47,600 --> 00:21:00,480
 Revenue projections of 59,167,356 and expense projections of 62,799,520.

246
00:21:00,480 --> 00:21:08,960
 The water fund anticipates holding two vacancies vacant through fiscal year 2026.

247
00:21:08,960 --> 00:21:13,120
 A retail rate study and wholesale rate study have been completed this year and that was

248
00:21:13,120 --> 00:21:18,080
 factored into the creation of the budget.

249
00:21:18,080 --> 00:21:23,080
 Also just to note that the WIFIA and Texas Water Development Board funding is also included

250
00:21:23,080 --> 00:21:30,680
 in the budget and staff has really been making a concerted effort to align the capital improvement

251
00:21:30,680 --> 00:21:35,440
 plan with the investment portfolio just from a cash management perspective and that just

252
00:21:35,440 --> 00:21:43,280
 ensures that when we do issue debt it's not sitting, you know, it's being put to use and

253
00:21:43,280 --> 00:21:45,680
 we're managing that cash flow well.

254
00:21:45,680 --> 00:21:56,600
 And then of course just balancing affordability with the growth of the city.

255
00:21:56,600 --> 00:22:03,600
 So taking a look at the five-year water forecast for fiscal year 2026 as I mentioned 59.1 million

256
00:22:03,600 --> 00:22:13,480
 in revenue, 62.7 million in expenditures, and a 3% rate increase on residential, commercial,

257
00:22:13,480 --> 00:22:19,940
 and 297% on treated water.

258
00:22:19,940 --> 00:22:26,880
 So getting into the preliminary rate changes or proposed rate changes for residential and

259
00:22:26,880 --> 00:22:35,240
 commercial, inside the corporate limits a 3% rate increase, for residential and commercial

260
00:22:35,240 --> 00:22:43,360
 service outside the corporate limits a 3% increase, for irrigation that is metered both

261
00:22:43,360 --> 00:22:51,320
 residential and commercial inside corporate limits 3%, and the same outside corporate

262
00:22:51,320 --> 00:22:58,420
 limits of 3%, a 3% increase on metered water from hydrants.

263
00:22:58,420 --> 00:22:59,420
 What is that?

264
00:22:59,420 --> 00:23:04,200
 Is that the dollar?

265
00:23:04,200 --> 00:23:05,200
 Yes, sorry the...

266
00:23:05,200 --> 00:23:06,200
 [inaudible]

267
00:23:06,200 --> 00:23:07,200
 Okay.

268
00:23:07,200 --> 00:23:08,200
 Got it.

269
00:23:08,200 --> 00:23:09,200
 Okay.

270
00:23:09,200 --> 00:23:22,440
 On the wholesale well water, one change, we currently have a specific rate in the book

271
00:23:22,440 --> 00:23:26,240
 of 96 cents for opportunity.

272
00:23:26,240 --> 00:23:32,720
 The contract actually stipulates it's 85% of the Dallas wholesale untreated water rate.

273
00:23:32,720 --> 00:23:37,440
 And so what we are proposing is just to change the language in the rate ordinance to the

274
00:23:37,440 --> 00:23:38,980
 85%.

275
00:23:38,980 --> 00:23:48,280
 And the reason for this is that both Denton and Dallas contemplate rate increases through

276
00:23:48,280 --> 00:23:50,080
 the budget process at the same time.

277
00:23:50,080 --> 00:23:59,960
 And so we don't know as we're putting together our budgets and rates what that adopted rate

278
00:23:59,960 --> 00:24:05,560
 in Dallas will be until late in the fall.

279
00:24:05,560 --> 00:24:11,560
 And so what this would do is it would allow us to adjust the rate rather than in the fall

280
00:24:11,560 --> 00:24:19,160
 rather than wait in another year essentially to implement it and be a year behind in the

281
00:24:19,160 --> 00:24:21,160
 rate that we're charging.

282
00:24:21,160 --> 00:24:22,160
 Question?

283
00:24:22,160 --> 00:24:24,360
 Mr. Rainey.

284
00:24:24,360 --> 00:24:27,720
 So is this a contractual agreement on the 85%?

285
00:24:27,720 --> 00:24:28,720
 Yes.

286
00:24:28,720 --> 00:24:34,100
 And so that stays the same.

287
00:24:34,100 --> 00:24:36,600
 Dallas comes up with a number.

288
00:24:36,600 --> 00:24:42,880
 So then how do we -- is our number part of the 85% or do we just come up with a number

289
00:24:42,880 --> 00:24:46,000
 but make sure that it falls within the 85%?

290
00:24:46,000 --> 00:24:48,000
 Is that kind of how I'm seeing it?

291
00:24:48,000 --> 00:24:50,080
 Our number is the 85%.

292
00:24:50,080 --> 00:24:51,080
 Okay.

293
00:24:51,080 --> 00:24:54,240
 So we're just really tied to whatever Dallas wishes.

294
00:24:54,240 --> 00:24:55,240
 Yes.

295
00:24:55,240 --> 00:24:56,240
 So if it goes up, it goes up.

296
00:24:56,240 --> 00:25:01,640
 If it goes down, we'll take a picture.

297
00:25:01,640 --> 00:25:03,200
 That's really what we're looking at, right?

298
00:25:03,200 --> 00:25:04,200
 Yeah.

299
00:25:04,200 --> 00:25:08,640
 We're just trying to clarify the language in the fee schedule to reflect what is in

300
00:25:08,640 --> 00:25:16,260
 the contract rather than a rate which the rate would be essentially a year behind because

301
00:25:16,260 --> 00:25:20,720
 we won't know what that is until after Dallas adopts.

302
00:25:20,720 --> 00:25:24,840
 And do we both get into a room to make that decision or do we just wait until Dallas comes

303
00:25:24,840 --> 00:25:27,680
 out of the room to tell us what that number will be?

304
00:25:27,680 --> 00:25:31,160
 I believe we just reference what Dallas publishes.

305
00:25:31,160 --> 00:25:32,160
 Okay.

306
00:25:32,160 --> 00:25:33,160
 Thank you.

307
00:25:33,160 --> 00:25:34,160
 Thank you, Doug.

308
00:25:34,160 --> 00:25:35,160
 Okay.

309
00:25:35,160 --> 00:25:36,160
 Follow up.

310
00:25:36,160 --> 00:25:37,160
 Thank you.

311
00:25:37,160 --> 00:25:38,160
 Yeah.

312
00:25:38,160 --> 00:25:47,120
 So on the opportunity pass-through rates, is that 96 cents or 85% of Dallas wholesale,

313
00:25:47,120 --> 00:25:56,440
 is that delivered water or is that water just in situ in the lake, in the reservoir?

314
00:25:56,440 --> 00:26:05,160
 Shorter than that, good morning, PV, Stephen Gage, General Manager of Water Utilities.

315
00:26:05,160 --> 00:26:08,880
 They have their own intake on Lake Lewisville, so that's just the raw water that they pull

316
00:26:08,880 --> 00:26:14,720
 from it and they have their own meter and we have a system where we can verify the draw.

317
00:26:14,720 --> 00:26:18,520
 And then follow up question on the treated portion there, I'm assuming that's a per

318
00:26:18,520 --> 00:26:19,520
 thousand gallon?

319
00:26:19,520 --> 00:26:24,680
 Per thousand gallons delivered and that's to the customers they have at City of Crum

320
00:26:24,680 --> 00:26:25,680
 and Sanger.

321
00:26:25,680 --> 00:26:33,120
 And so they purchase the water from us and deliver to Crum and Sanger.

322
00:26:33,120 --> 00:26:36,400
 But it goes through some kind of wholesale facility, like they have tanks and pumps?

323
00:26:36,400 --> 00:26:39,100
 They actually have metered connections.

324
00:26:39,100 --> 00:26:45,560
 There's one on the, I guess the border of Crum and then over on Milam and the 35 is

325
00:26:45,560 --> 00:26:48,000
 the metering connection for Sanger.

326
00:26:48,000 --> 00:26:53,140
 And so that's the point of delivery for those two wholesale connections.

327
00:26:53,140 --> 00:26:58,560
 In this big jump, I believe we, I remember a year or so ago you all were doing a wholesale

328
00:26:58,560 --> 00:26:59,560
 rate study.

329
00:26:59,560 --> 00:27:00,560
 Is that the result of that?

330
00:27:00,560 --> 00:27:01,560
 Yeah, and this is the result of that.

331
00:27:01,560 --> 00:27:02,560
 We hadn't raised the rate.

332
00:27:02,560 --> 00:27:07,920
 I mean, last year we did a modest increase based off of CPI.

333
00:27:07,920 --> 00:27:13,400
 And we did the rate study and it demonstrated that we were woefully undercharging for treated

334
00:27:13,400 --> 00:27:14,400
 water.

335
00:27:14,400 --> 00:27:15,400
 Okay.

336
00:27:15,400 --> 00:27:16,400
 Thank you.

337
00:27:16,400 --> 00:27:17,400
 All right.

338
00:27:17,400 --> 00:27:18,400
 Thanks.

339
00:27:18,400 --> 00:27:28,440
 Okay.

340
00:27:28,440 --> 00:27:42,040
 Meter fees and meter relocation fees, an increase of 3% and a 3% increase on fire hydrant installations.

341
00:27:42,040 --> 00:27:48,440
 So this is a chart I believe that we had shown last time, just giving a comparison of where

342
00:27:48,440 --> 00:27:55,000
 Denton's rates currently are and where they will be with the proposed increases.

343
00:27:55,000 --> 00:28:02,200
 Keep in mind these other comparison cities have not finished their budget process and

344
00:28:02,200 --> 00:28:11,440
 so it is assumed that some of their rates would increase as well.

345
00:28:11,440 --> 00:28:18,720
 So not much of a change on the residential proposed in relation to the comparison cities

346
00:28:18,720 --> 00:28:21,520
 where we are currently on commercial rates.

347
00:28:21,520 --> 00:28:31,160
 And this does include that blue bar is both water and wastewater and where we would be

348
00:28:31,160 --> 00:28:40,000
 with the proposed rates, which is essentially in line with Frisco, Plano, and McKinney.

349
00:28:40,000 --> 00:28:45,100
 And then an overview of the five-year capital plan, which again, you have the backup with

350
00:28:45,100 --> 00:28:47,000
 the specific projects.

351
00:28:47,000 --> 00:28:57,240
 But 94.9 million in fiscal year 2026, of which we anticipate 37.9 million to be funded with

352
00:28:57,240 --> 00:29:04,120
 WIFIA and 55.6 million, a combination of CEOs and the Texas Water Development Board, and

353
00:29:04,120 --> 00:29:07,440
 then 1.3 million in revenue funding.

354
00:29:07,440 --> 00:29:11,960
 Any questions?

355
00:29:11,960 --> 00:29:21,720
 >> My question maybe -- let me go ahead and go to the floor here, is anybody else -- no?

356
00:29:21,720 --> 00:29:28,320
 So my question, this is just a general knowledge deal, are you seeing the requests for hydrants

357
00:29:28,320 --> 00:29:34,840
 and meters going down at this point?

358
00:29:34,840 --> 00:29:42,820
 >> So development right now in Denton is remaining the same as far as you can project?

359
00:29:42,820 --> 00:29:43,820
 >> Very active.

360
00:29:43,820 --> 00:29:51,280
 We actually did -- we did some analysis recently when we were looking at the impact fees, and

361
00:29:51,280 --> 00:29:57,140
 we can show that we have grown much more rapidly than we had anticipated.

362
00:29:57,140 --> 00:30:02,320
 You can see a little dip during the pandemic, where we slowed down a little bit, but we're

363
00:30:02,320 --> 00:30:03,320
 on track to --

364
00:30:03,320 --> 00:30:05,200
 >> But nothing now?

365
00:30:05,200 --> 00:30:06,200
 >> Nothing now.

366
00:30:06,200 --> 00:30:10,040
 We're not -- we're really not seeing any lag in development at all right now.

367
00:30:10,040 --> 00:30:11,040
 >> Okay.

368
00:30:11,040 --> 00:30:12,040
 All right.

369
00:30:12,040 --> 00:30:13,040
 Thanks.

370
00:30:13,040 --> 00:30:14,040
 >> You're welcome.

371
00:30:14,040 --> 00:30:15,040
 >> Just curious.

372
00:30:15,040 --> 00:30:16,040
 All right.

373
00:30:16,040 --> 00:30:22,240
 If there aren't any more questions, entertain a motion to approve this item.

374
00:30:22,240 --> 00:30:23,240
 Any other motion?

375
00:30:23,240 --> 00:30:24,240
 >> Second.

376
00:30:24,240 --> 00:30:25,360
 >> We have a second.

377
00:30:25,360 --> 00:30:34,200
 You know the two guys are going to have to participate here.

378
00:30:34,200 --> 00:30:36,200
 All those in favor, please say aye.

379
00:30:36,200 --> 00:30:37,200
 >> Aye.

380
00:30:37,200 --> 00:30:38,200
 >> Thank you.

381
00:30:38,200 --> 00:30:39,200
 It's unanimous votes.

382
00:30:39,200 --> 00:30:40,200
 All right.

383
00:30:40,200 --> 00:30:46,200
 Moving on to item F, consider approval of the electric fund.

384
00:30:46,200 --> 00:30:50,720
 I want to waste water, I'm sorry.

385
00:30:50,720 --> 00:31:00,980
 Water, waste water, okay.

386
00:31:00,980 --> 00:31:02,840
 >> Okay.

387
00:31:02,840 --> 00:31:04,840
 Waste water fund.

388
00:31:04,840 --> 00:31:16,040
 So for fiscal year 2526, we are proposing revenue of 44.5 million and also an increase

389
00:31:16,040 --> 00:31:22,440
 of 11%, which we'll get into in the future slides.

390
00:31:22,440 --> 00:31:29,360
 Drainage, a budget of 5.8 million, which is a 3.6% increase over the 2025 budget, and

391
00:31:29,360 --> 00:31:32,400
 no proposed rate increase for drainage.

392
00:31:32,400 --> 00:31:36,440
 We have kicked off a cost of service study as we talked about at the last meeting with

393
00:31:36,440 --> 00:31:42,680
 Raftelis on June 27th, and so the intent is to bring forward after the conclusion of that

394
00:31:42,680 --> 00:31:50,800
 cost of service proposed rates for drainage in the 2027 budget.

395
00:31:50,800 --> 00:31:57,680
 Expense projections for waste water, 44.1 million, drainage, 7.1 million, and all vehicle

396
00:31:57,680 --> 00:32:01,480
 replacements are budgeted to be revenue funded.

397
00:32:01,480 --> 00:32:08,960
 So taking a look at the waste water five-year forecast proposed for fiscal year 2026, as

398
00:32:08,960 --> 00:32:19,080
 I mentioned, 44.5 million revenue, 44.1 million in total expenditures with a change in fund

399
00:32:19,080 --> 00:32:31,400
 balance of 377,000, an 11% rate increase on residential and an 11% rate increase on commercial.

400
00:32:31,400 --> 00:32:38,920
 Taking a look at drainage and waste water, drainage is a part of the waste water fund,

401
00:32:38,920 --> 00:32:43,680
 but we've broken the two out just so that you can see each component individually.

402
00:32:43,680 --> 00:32:53,380
 So for drainage, 5.8 million in revenue and 7.1 million in expense.

403
00:32:53,380 --> 00:32:58,840
 The reason for this, as we had talked about, was in fiscal year 2024, typically at the

404
00:32:58,840 --> 00:33:07,320
 end of the year, we move money into a capital account for drainage to complete channel repairs.

405
00:33:07,320 --> 00:33:13,020
 That transfer didn't occur, and so that funding you can see, their fund balance increased

406
00:33:13,020 --> 00:33:19,480
 from a million to 2.3, so what we're doing is budgeting in 2026 to move that funding

407
00:33:19,480 --> 00:33:28,640
 back into or into the channel rehab account so that it can be utilized, and it returns

408
00:33:28,640 --> 00:33:34,000
 the fund balance to the target of a million dollars.

409
00:33:34,000 --> 00:33:39,360
 So this is the waste water and drainage five-year forecast with those two combined.

410
00:33:39,360 --> 00:33:51,080
 So 50.4 million in proposed revenue, 51.3 million in expense, and a net use of reserve

411
00:33:51,080 --> 00:33:57,000
 of 935,000, but again, that's the drainage funding that we're moving out of fund balance

412
00:33:57,000 --> 00:34:02,040
 into the job, into the channel rehab account.

413
00:34:02,040 --> 00:34:12,200
 Okay, so preliminary rate changes proposed for the Wastewater Fund Residential Service,

414
00:34:12,200 --> 00:34:17,280
 increasing 11% both in and outside of the city limits.

415
00:34:17,280 --> 00:34:26,200
 It also applies to accounts that do not have City of Denton Water Service.

416
00:34:26,200 --> 00:34:32,760
 Commercial Home Park Service, an 11% increase both inside and outside the limits.

417
00:34:32,760 --> 00:34:39,160
 Commercial and Industrial, an 11% increase inside and outside the limits.

418
00:34:39,160 --> 00:34:44,240
 Commercial and Industrial Metered and Submetered accounts, an 11% increase.

419
00:34:44,240 --> 00:34:52,520
 Septage and Chemical Toilet Disposal and Restaurant and Food Establishments, an 11% increase.

420
00:34:52,520 --> 00:34:59,320
 Oil of treated affluence, wholesale wastewater treatment, and the dino dirt products are

421
00:34:59,320 --> 00:35:04,040
 also included in the 11% increase.

422
00:35:04,040 --> 00:35:08,760
 These are the same charts as you saw in the previous presentation with water and wastewater

423
00:35:08,760 --> 00:35:12,280
 combined.

424
00:35:12,280 --> 00:35:21,320
 So essentially, remaining where we were relative to the comparative cities on residential,

425
00:35:21,320 --> 00:35:29,360
 and for commercial increasing in alignment with Frisco, Plano, and McKinney.

426
00:35:29,360 --> 00:35:37,600
 So taking a look at the Wastewater Five-Year Capital Plan for fiscal year 2026, 242.9 million,

427
00:35:37,600 --> 00:35:44,360
 which is primarily made up of the plant improvements.

428
00:35:44,360 --> 00:35:54,960
 We anticipate 98.2 million to be WIFIA funded and 141.8 million to be debt funded.

429
00:35:54,960 --> 00:35:58,520
 And any questions?

430
00:35:58,520 --> 00:36:04,140
 I have a question on the capital, the Pecan Creek, what we just approved earlier.

431
00:36:04,140 --> 00:36:08,880
 Have those numbers been adjusted or because it looks like it's the higher number, and

432
00:36:08,880 --> 00:36:18,320
 I realize engineering is in there.

433
00:36:18,320 --> 00:36:20,160
 Jason's on that water utilities.

434
00:36:20,160 --> 00:36:24,440
 The numbers you see are a little bit higher due to our internal staff being requested

435
00:36:24,440 --> 00:36:30,040
 by the EPA to add an additional contingency percent due to the rising cost of construction.

436
00:36:30,040 --> 00:36:35,320
 I believe it was around 20% extra that you're seeing here as opposed to what I showed earlier.

437
00:36:35,320 --> 00:36:36,320
 Thank you.

438
00:36:36,320 --> 00:36:42,700
 I'd rather plan for contingencies, too.

439
00:36:42,700 --> 00:36:47,580
 Any other questions?

440
00:36:47,580 --> 00:36:52,160
 So I think we're looking at over a billion dollars in capital improvements over the next

441
00:36:52,160 --> 00:36:53,160
 five years.

442
00:36:53,160 --> 00:36:54,160
 Yes.

443
00:36:54,160 --> 00:37:00,240
 And we just saw the presentation on seeking the most cost-effective means to meet our

444
00:37:00,240 --> 00:37:05,040
 growing wastewater demand and changing our plans from rehabbing the existing facility

445
00:37:05,040 --> 00:37:08,160
 to building a new one, because it will save us $100 million.

446
00:37:08,160 --> 00:37:14,440
 But still, $100 million savings still leaves us with a billion dollars.

447
00:37:14,440 --> 00:37:20,000
 So an 11% increase is a substantial rate increase.

448
00:37:20,000 --> 00:37:24,040
 What was the last year we had a rate increase?

449
00:37:24,040 --> 00:37:27,200
 The rates did increase last year, 11% as well.

450
00:37:27,200 --> 00:37:34,800
 So we're on this track to pay for all of this capital improvements that are needed.

451
00:37:34,800 --> 00:37:40,560
 It is a -- you know, these are large numbers, but I feel like they're probably necessary.

452
00:37:40,560 --> 00:37:49,880
 Yeah, and I'll just note -- let me go back to the forecast real quick.

453
00:37:49,880 --> 00:37:58,080
 So as you'll notice, over the next four years, beyond fiscal year '26, those rate increases,

454
00:37:58,080 --> 00:38:05,480
 the forecast rate increases do decline, and so we do anticipate, as we move forward, that

455
00:38:05,480 --> 00:38:12,960
 we won't have rate increases that are as, you know, high as 11%.

456
00:38:12,960 --> 00:38:18,000
 And so, you know, I just wanted to note that, that, you know, we do anticipate that that

457
00:38:18,000 --> 00:38:25,400
 will return back down to, you know, more normal levels, just based on, you know, inflation

458
00:38:25,400 --> 00:38:35,260
 and operating increases and things.

459
00:38:35,260 --> 00:38:38,260
 Any further questions or discussion?

460
00:38:38,260 --> 00:38:49,480
 We have a motion and a second.

461
00:38:49,480 --> 00:38:51,200
 All in favor, please say aye.

462
00:38:51,200 --> 00:38:52,200
 Aye.

463
00:38:52,200 --> 00:38:54,260
 The motion carries unanimously.

464
00:38:54,260 --> 00:38:59,880
 The next item on the agenda is item F, consider recommending approval of the electric fund

465
00:38:59,880 --> 00:39:04,960
 for fiscal year '25, '26.

466
00:39:04,960 --> 00:39:08,560
 Okay.

467
00:39:08,560 --> 00:39:17,040
 So jumping into electric, for fiscal year 2026, we're proposing a 34.2% increase as

468
00:39:17,040 --> 00:39:21,320
 a -- compared to the '25 budget.

469
00:39:21,320 --> 00:39:26,720
 As you'll see, a lot of that is purchase power, in fact, all of it is a purchase power.

470
00:39:26,720 --> 00:39:33,680
 I do want to note that staff is running an updated purchase power forecast, and so these

471
00:39:33,680 --> 00:39:40,760
 numbers are based on a forecast that was produced, I believe, in March, but we're working, you

472
00:39:40,760 --> 00:39:46,720
 know, just as the summer has evolved, you know, want to update that forecast.

473
00:39:46,720 --> 00:39:52,960
 If that forecast is updated, we'll bring it back to you, just so that you're able to review

474
00:39:52,960 --> 00:39:58,000
 it and provide an updated recommendation to counsel before budget adoption.

475
00:39:58,000 --> 00:40:01,440
 So I just wanted to note that.

476
00:40:01,440 --> 00:40:07,320
 There is no base rate increase proposed for DME in fiscal year '26.

477
00:40:07,320 --> 00:40:13,080
 The ECA and TCRF will adjust as they have been adjusting the ECA on a quarterly basis

478
00:40:13,080 --> 00:40:15,640
 and the TCRF annually.

479
00:40:15,640 --> 00:40:21,400
 We talked a little bit about just the implementation of the ECA large load, which we think will

480
00:40:21,400 --> 00:40:25,800
 strengthen the fund's financials by having that reserve target.

481
00:40:25,800 --> 00:40:35,280
 Revenue projections of $526.6 million and expense projections of $509.5 million.

482
00:40:35,280 --> 00:40:42,060
 Through the zero-based budgeting process, DME was also able to identify $3.3 million

483
00:40:42,060 --> 00:40:48,200
 reductions, one being the winter and summer outage insurance.

484
00:40:48,200 --> 00:40:54,600
 And we just want to note that we still have contingency funds available for, you know,

485
00:40:54,600 --> 00:40:58,520
 any unexpected outage.

486
00:40:58,520 --> 00:41:06,560
 The campus expansion, revenue funding, the design piece of that, which reduced the debt

487
00:41:06,560 --> 00:41:14,240
 service by almost $1 million, and then reducing the focused advocacy contract of $72,000,

488
00:41:14,240 --> 00:41:17,360
 which is a lobbying contract.

489
00:41:17,360 --> 00:41:25,880
 Additionally, DME intends to hold six vacancies throughout 2026, which contributes to that

490
00:41:25,880 --> 00:41:30,080
 $3.3 million in savings.

491
00:41:30,080 --> 00:41:40,240
 So taking a look at the five-year forecast, again, $526.6 million in revenue, $509.5 million

492
00:41:40,240 --> 00:41:50,000
 in expense for a net income of $17 million and no base rate increase.

493
00:41:50,000 --> 00:41:57,360
 So looking at DME's five-year capital plan, we anticipate $63.9 million of new funding,

494
00:41:57,360 --> 00:42:05,880
 of which $58.4 million would be debt funded, and $1.47 million would come from their operating

495
00:42:05,880 --> 00:42:10,120
 and another $4 million in development contributions.

496
00:42:10,120 --> 00:42:17,600
 Just as an overview, new residential and commercial, $8.3 million in projects, distribution, transformers

497
00:42:17,600 --> 00:42:24,760
 and substations, $18.2 million, transmission lines and substations, $12.2 million, feeder

498
00:42:24,760 --> 00:42:31,060
 extension and improvements, $11.1 million, meter improvements, $1.8 million, street lighting

499
00:42:31,060 --> 00:42:36,760
 and power factor improvements of just under a million, technology and electric relocations

500
00:42:36,760 --> 00:42:42,640
 of $9.9 million, and again, revenue funding vehicles of $1.47 million.

501
00:42:42,640 --> 00:42:53,960
 We did want to mention, as we had mentioned to counsel previously, that DME is looking

502
00:42:53,960 --> 00:43:00,080
 at some transmission overload projects which are pending ERCOT approval.

503
00:43:00,080 --> 00:43:06,900
 If those were to move forward, we would come back to you looking for an operating and capital

504
00:43:06,900 --> 00:43:14,520
 budget amendment for the debt service, and then as those assets are energized, you know,

505
00:43:14,520 --> 00:43:18,080
 the offsetting revenue associated with those as well.

506
00:43:18,080 --> 00:43:23,680
 So just wanted to make you aware that that may be coming back to you at some point in

507
00:43:23,680 --> 00:43:27,760
 the future.

508
00:43:27,760 --> 00:43:33,640
 So looking at the capital plan for fiscal year 2026, $63.9 million.

509
00:43:33,640 --> 00:43:38,880
 As I mentioned, $58.4 million debt funded, $1.4 million revenue funded, and $4 million

510
00:43:38,880 --> 00:43:42,520
 from developer contributions.

511
00:43:42,520 --> 00:43:47,960
 And any questions?

512
00:43:47,960 --> 00:43:48,960
 Ms. Parker?

513
00:43:48,960 --> 00:43:54,040
 First one on slide two, the six positions that are being held open, what kinds are they

514
00:43:54,040 --> 00:43:57,440
 if they're not going to impact reliability or service?

515
00:43:57,440 --> 00:44:00,680
 Well, the short answer is no.

516
00:44:00,680 --> 00:44:06,440
 Those are positions that were actually added for this fiscal year that we've not filled,

517
00:44:06,440 --> 00:44:08,840
 and so we felt comfortable keeping them unfilled.

518
00:44:08,840 --> 00:44:14,960
 Now, if there's a change, then we will come back to and discuss that with city manager's

519
00:44:14,960 --> 00:44:21,280
 office.

520
00:44:21,280 --> 00:44:25,760
 Now you've got a lot of transmission line considerations going on.

521
00:44:25,760 --> 00:44:27,880
 So save those questions for later.

522
00:44:27,880 --> 00:44:31,520
 I'm sure you'll have some work to do on that.

523
00:44:31,520 --> 00:44:33,160
 Anybody else?

524
00:44:33,160 --> 00:44:34,160
 Okay.

525
00:44:34,160 --> 00:44:35,160
 All right.

526
00:44:35,160 --> 00:44:38,520
 And we will entertain a motion to approve this item.

527
00:44:38,520 --> 00:44:41,120
 We have a motion.

528
00:44:41,120 --> 00:44:42,120
 Second.

529
00:44:42,120 --> 00:44:43,120
 Second.

530
00:44:43,120 --> 00:44:44,120
 Thank you.

531
00:44:44,120 --> 00:44:45,120
 I know it.

532
00:44:45,120 --> 00:44:46,120
 I know it well.

533
00:44:46,120 --> 00:44:47,120
 You know, thanks.

534
00:44:47,120 --> 00:44:50,480
 You do it for Deb and not for me.

535
00:44:50,480 --> 00:44:52,120
 All those in favor, please say aye.

536
00:44:52,120 --> 00:44:53,120
 Aye.

537
00:44:53,120 --> 00:44:54,120
 Passes unanimously.

538
00:44:54,120 --> 00:45:01,120
 Moving on to item G, which is customer service.

539
00:45:01,120 --> 00:45:09,920
 So looking at the customer service fund for fiscal year 2026, we are proposing $11.8 million

540
00:45:09,920 --> 00:45:13,880
 in revenue and $11.8 million in expense.

541
00:45:13,880 --> 00:45:19,480
 As a reminder, the customer service fund is an internal service fund that is funded by

542
00:45:19,480 --> 00:45:28,700
 the utilities in order to, you know, complete utility billing on their behalf.

543
00:45:28,700 --> 00:45:34,760
 And as we talked about at the last meeting in regard to convenience fees, the city currently

544
00:45:34,760 --> 00:45:41,040
 pays $1.3 million in credit card fees and e-check processing fees.

545
00:45:41,040 --> 00:45:48,640
 The city currently doesn't have a dedicated fee to recover that cost.

546
00:45:48,640 --> 00:45:55,840
 So we talked about a number of options, and we took the PUB's feedback.

547
00:45:55,840 --> 00:45:58,480
 We presented the information to council.

548
00:45:58,480 --> 00:46:03,140
 Council had very similar feedback to the board.

549
00:46:03,140 --> 00:46:09,880
 And so staff is currently looking at a number of different options, whether it's a flat

550
00:46:09,880 --> 00:46:17,080
 rate convenience fee, the options related to percentage-based fee, potentially a tiered

551
00:46:17,080 --> 00:46:22,440
 system of some type for convenience fees, and also a fee that would be based on customer

552
00:46:22,440 --> 00:46:26,200
 type, whether it's residential or commercial, et cetera.

553
00:46:26,200 --> 00:46:32,280
 So just wanted to let you know that staff is still looking into these options.

554
00:46:32,280 --> 00:46:34,760
 It's not as straightforward as just flipping a switch.

555
00:46:34,760 --> 00:46:40,880
 There's a lot of back office adjustments that would need to be made, as well as work

556
00:46:40,880 --> 00:46:48,740
 with the city's vendors to ensure that it's feasible to move forward.

557
00:46:48,740 --> 00:46:56,240
 So our intent is to continue to put together options and bring that back to the board for

558
00:46:56,240 --> 00:47:00,860
 your recommendation on the implementation of that fee.

559
00:47:00,860 --> 00:47:07,960
 What it means for the budget, if I back up a slide, currently all the utilities transfer

560
00:47:07,960 --> 00:47:10,400
 funds into the customer service fund.

561
00:47:10,400 --> 00:47:15,540
 So the implementation of this fee, the effect of it, if it were to be implemented next year,

562
00:47:15,540 --> 00:47:25,160
 would be that the transfers from the utilities would be lowered, and the utilities would

563
00:47:25,160 --> 00:47:27,640
 see a savings in their funds.

564
00:47:27,640 --> 00:47:34,880
 So from a customer service fund budget perspective, this $11.8 million in revenue and expense

565
00:47:34,880 --> 00:47:37,240
 would be unchanged.

566
00:47:37,240 --> 00:47:40,800
 It's just a matter of where that funding comes from.

567
00:47:40,800 --> 00:47:44,920
 So I just want to let you know that the savings wouldn't be seen in the customer service fund,

568
00:47:44,920 --> 00:47:53,960
 it's going to be seen in the utility funds, which then would help their funds.

569
00:47:53,960 --> 00:48:00,760
 Could you go back to slide three, please?

570
00:48:00,760 --> 00:48:10,320
 So the cost recovery options, those four points are directly related to how to address the

571
00:48:10,320 --> 00:48:11,720
 $1.3 million.

572
00:48:11,720 --> 00:48:12,760
 Correct.

573
00:48:12,760 --> 00:48:16,840
 So the individuals, because they're using credit cards and that.

574
00:48:16,840 --> 00:48:23,480
 So would those fees then be directly related just to them versus those that may come in

575
00:48:23,480 --> 00:48:25,120
 and pay cash or a check?

576
00:48:25,120 --> 00:48:26,680
 They will be?

577
00:48:26,680 --> 00:48:27,680
 Correct.

578
00:48:27,680 --> 00:48:28,680
 Okay.

579
00:48:28,680 --> 00:48:29,680
 Thank you.

580
00:48:29,680 --> 00:48:30,680
 Yes.

581
00:48:30,680 --> 00:48:31,680
 Yes.

582
00:48:31,680 --> 00:48:32,680
 Yeah.

583
00:48:32,680 --> 00:48:37,520
 So what we're looking at, what we're looking at is a convenience fee for paying with a

584
00:48:37,520 --> 00:48:48,280
 card online, as opposed to, you know, if you have a credit card, we're looking into it.

585
00:48:48,280 --> 00:48:49,400
 So yeah.

586
00:48:49,400 --> 00:48:50,400
 Yeah.

587
00:48:50,400 --> 00:48:53,120
 Did you say, I'm sorry, did you say a debit card?

588
00:48:53,120 --> 00:48:57,480
 This is for both of them, right?

589
00:48:57,480 --> 00:48:58,480
 It is both.

590
00:48:58,480 --> 00:48:59,480
 Okay.

591
00:48:59,480 --> 00:49:00,480
 Yes.

592
00:49:00,480 --> 00:49:01,480
 I'm sorry, I missed it.

593
00:49:01,480 --> 00:49:02,480
 What is both then?

594
00:49:02,480 --> 00:49:03,480
 Debit and credit.

595
00:49:03,480 --> 00:49:05,840
 Oh, so this fee could be for the debit as well then?

596
00:49:05,840 --> 00:49:12,120
 If it is processed online through the website, if you were to come in, any kind of point

597
00:49:12,120 --> 00:49:18,320
 of sale, you know, you swipe your card in person, that would not be assessed the fee.

598
00:49:18,320 --> 00:49:19,320
 Okay.

599
00:49:19,320 --> 00:49:24,640
 But those are the kinds of details that we're trying to sort through in terms of, you know,

600
00:49:24,640 --> 00:49:32,360
 what the card processors and the rules around each, you know, are, and bring those back

601
00:49:32,360 --> 00:49:33,360
 to you.

602
00:49:33,360 --> 00:49:34,360
 So cash and checks would be exempt.

603
00:49:34,360 --> 00:49:35,360
 Yes.

604
00:49:35,360 --> 00:49:36,360
 That's the word I wanted.

605
00:49:36,360 --> 00:49:37,360
 Yes, yes.

606
00:49:37,360 --> 00:49:38,360
 So it would be out there.

607
00:49:38,360 --> 00:49:39,360
 All right.

608
00:49:39,360 --> 00:49:40,360
 Thank you.

609
00:49:40,360 --> 00:49:44,240
 And if I remember, if you're on a reoccurring, even though you're using a credit card, that

610
00:49:44,240 --> 00:49:46,080
 fee will not be charged.

611
00:49:46,080 --> 00:49:47,120
 That's correct.

612
00:49:47,120 --> 00:49:53,240
 If we were to move forward with a convenience fee, those, we could not charge the convenience

613
00:49:53,240 --> 00:49:55,120
 fee on those recurring payments.

614
00:49:55,120 --> 00:49:57,400
 And that's because of the law around?

615
00:49:57,400 --> 00:49:58,400
 That's correct.

616
00:49:58,400 --> 00:49:59,400
 Okay.

617
00:49:59,400 --> 00:50:00,400
 Yes.

618
00:50:00,400 --> 00:50:06,320
 Now, there are some other types of fees, whether it's a service fee or a surcharge.

619
00:50:06,320 --> 00:50:11,920
 There's different types of fees in the merchant service world.

620
00:50:11,920 --> 00:50:19,120
 And so, you know, we're taking a holistic look, but really what we were looking, you

621
00:50:19,120 --> 00:50:23,600
 know, focused on was just the convenience fee for those credit cards that were being

622
00:50:23,600 --> 00:50:24,600
 processed online.

623
00:50:24,600 --> 00:50:25,600
 Okay.

624
00:50:25,600 --> 00:50:26,600
 Thank you.

625
00:50:26,600 --> 00:50:27,600
 All right.

626
00:50:27,600 --> 00:50:28,600
 Just wanted to comment.

627
00:50:28,600 --> 00:50:33,120
 After our last meeting, I actually went home that day and changed from paying with my debit

628
00:50:33,120 --> 00:50:37,820
 card to paying with an e-check because, you know, I had no idea that $10 a month of what

629
00:50:37,820 --> 00:50:41,040
 I was paying the city was going to a credit card processor.

630
00:50:41,040 --> 00:50:47,800
 So instead it's now it's five cents to a check processor and I do really strongly believe

631
00:50:47,800 --> 00:50:52,960
 we want to encourage that movement because it's not, you know, it's still a two minute

632
00:50:52,960 --> 00:51:01,920
 process to do an e-check versus a debit card and you set it up once and save 3% forever

633
00:51:01,920 --> 00:51:04,480
 on, you know, in cost.

634
00:51:04,480 --> 00:51:05,480
 Yeah.

635
00:51:05,480 --> 00:51:08,560
 There are ways to do it, in other words.

636
00:51:08,560 --> 00:51:09,560
 Yeah.

637
00:51:09,560 --> 00:51:10,560
 Okay.

638
00:51:10,560 --> 00:51:11,560
 Thank you.

639
00:51:11,560 --> 00:51:12,560
 All right.

640
00:51:12,560 --> 00:51:13,560
 I guess that's all.

641
00:51:13,560 --> 00:51:14,560
 All right.

642
00:51:14,560 --> 00:51:18,560
 Now I will entertain a motion to approve that item.

643
00:51:18,560 --> 00:51:24,800
 We have a motion and a second, what a different combination.

644
00:51:24,800 --> 00:51:25,800
 All right.

645
00:51:25,800 --> 00:51:26,800
 Thank you.

646
00:51:26,800 --> 00:51:27,800
 All those in favor, please say aye.

647
00:51:27,800 --> 00:51:28,800
 Aye.

648
00:51:28,800 --> 00:51:29,800
 It's unanimous.

649
00:51:29,800 --> 00:51:30,800
 Thank you.

650
00:51:30,800 --> 00:51:35,720
 Moving on to item H.

651
00:51:35,720 --> 00:51:42,960
 Yeah, sorry, that is the end of the presentations.

652
00:51:42,960 --> 00:51:49,880
 The remaining, I believe, four items relate to rates just as a separate item, but those

653
00:51:49,880 --> 00:51:51,720
 were incorporated into the presentation.

654
00:51:51,720 --> 00:51:54,480
 So if you have any questions, again, on those, yeah.

655
00:51:54,480 --> 00:51:55,480
 Yep.

656
00:51:55,480 --> 00:51:56,480
 Thank you.

657
00:51:56,480 --> 00:51:58,200
 We covered it all in the previous presentations.

658
00:51:58,200 --> 00:52:02,440
 And considering that we've approved them all, we kind of need to approve the rates now.

659
00:52:02,440 --> 00:52:03,440
 Yeah.

660
00:52:03,440 --> 00:52:04,440
 That would probably be good.

661
00:52:04,440 --> 00:52:05,440
 All right.

662
00:52:05,440 --> 00:52:06,440
 All right.

663
00:52:06,440 --> 00:52:10,640
 So I'll entertain a motion for item H, water fund.

664
00:52:10,640 --> 00:52:11,640
 Move approval.

665
00:52:11,640 --> 00:52:12,640
 I have a motion.

666
00:52:12,640 --> 00:52:13,640
 Second.

667
00:52:13,640 --> 00:52:14,640
 Second.

668
00:52:14,640 --> 00:52:15,640
 All those in favor, please say aye.

669
00:52:15,640 --> 00:52:16,640
 Aye.

670
00:52:16,640 --> 00:52:17,640
 Passes unanimously.

671
00:52:17,640 --> 00:52:22,560
 Now entertain a motion for, to approve item I.

672
00:52:22,560 --> 00:52:23,560
 So move.

673
00:52:23,560 --> 00:52:24,560
 We have a motion.

674
00:52:24,560 --> 00:52:25,560
 Second.

675
00:52:25,560 --> 00:52:26,560
 All those in favor, please say aye.

676
00:52:26,560 --> 00:52:27,560
 Aye.

677
00:52:27,560 --> 00:52:28,560
 Passes unanimously.

678
00:52:28,560 --> 00:52:34,680
 Is there a motion for item J to approve?

679
00:52:34,680 --> 00:52:37,080
 So moved.

680
00:52:37,080 --> 00:52:38,080
 Motion and a second.

681
00:52:38,080 --> 00:52:39,080
 All those in favor, please say aye.

682
00:52:39,080 --> 00:52:40,080
 Aye.

683
00:52:40,080 --> 00:52:41,080
 Aye.

684
00:52:41,080 --> 00:52:42,080
 Passes unanimously.

685
00:52:42,080 --> 00:52:44,400
 Is there a motion to approve item K?

686
00:52:44,400 --> 00:52:45,400
 So moved.

687
00:52:45,400 --> 00:52:46,400
 Motion.

688
00:52:46,400 --> 00:52:47,400
 Second.

689
00:52:47,400 --> 00:52:48,400
 Second.

690
00:52:48,400 --> 00:52:49,720
 All those in favor, please say aye.

691
00:52:49,720 --> 00:52:50,720
 Aye.

692
00:52:50,720 --> 00:52:51,720
 Passes unanimously.

693
00:52:51,720 --> 00:52:53,480
 Is there a motion to approve item?

694
00:52:53,480 --> 00:52:54,480
 Well, here we go.

695
00:52:54,480 --> 00:52:59,000
 We're going to talk about item L. I was on a roll there, but management reports.

696
00:52:59,000 --> 00:53:00,000
 Tony.

697
00:53:00,000 --> 00:53:05,200
 So, Mr. Chair, members of the board, I don't really have anything, there's really no outstanding

698
00:53:05,200 --> 00:53:08,020
 items for new business action.

699
00:53:08,020 --> 00:53:14,420
 Your calendar, at least for future items, does seem pretty vacant here, but there is

700
00:53:14,420 --> 00:53:17,120
 one item that we're working on that I want to give you a heads up.

701
00:53:17,120 --> 00:53:22,160
 This is with customer service on our credit collection process and leak adjustment.

702
00:53:22,160 --> 00:53:23,160
 That'll be coming to you.

703
00:53:23,160 --> 00:53:29,160
 I just cannot recall at this point when in September, but it's one of those two meetings.

704
00:53:29,160 --> 00:53:30,360
 And we're working through that now.

705
00:53:30,360 --> 00:53:33,820
 I hope to bring that to you sometime in September.

706
00:53:33,820 --> 00:53:38,080
 We'll be working with the other departments to see if there's other major items to give

707
00:53:38,080 --> 00:53:42,960
 you a heads up in case any of you are planning to be out, and if there's a need for us to

708
00:53:42,960 --> 00:53:45,400
 kind of work with your schedules, we're happy to do that.

709
00:53:45,400 --> 00:53:49,000
 So with that, if there's anything else that you need, happy to go through that.

710
00:53:49,000 --> 00:53:51,200
 I was going to say new business items.

711
00:53:51,200 --> 00:53:52,680
 Mr. Rayner, do you have anything?

712
00:53:52,680 --> 00:53:53,680
 I knew it was coming.

713
00:53:53,680 --> 00:54:01,400
 I was just curious in the paper, is it Love Valley with the sewer?

714
00:54:01,400 --> 00:54:02,400
 Whatever the swamp.

715
00:54:02,400 --> 00:54:07,240
 The package plant, how will that affect us in any way?

716
00:54:07,240 --> 00:54:10,240
 Because it keeps coming in, the city council is involved with it, somebody.

717
00:54:10,240 --> 00:54:13,720
 Mr. Kay, could you give us an insight, please?

718
00:54:13,720 --> 00:54:17,160
 I think it's even good, probably just briefly maybe cover it, but very briefly, if that

719
00:54:17,160 --> 00:54:18,160
 is possible.

720
00:54:18,160 --> 00:54:19,160
 Oh, if it's permissible.

721
00:54:19,160 --> 00:54:20,720
 Yeah, because it's not on the agenda.

722
00:54:20,720 --> 00:54:27,920
 Really quickly, the city has filed its, well, the plant itself will affect the watershed,

723
00:54:27,920 --> 00:54:32,240
 and so we are evaluating our options to protest.

724
00:54:32,240 --> 00:54:34,160
 That's really high level.

725
00:54:34,160 --> 00:54:35,160
 Thank you for the report.

726
00:54:35,160 --> 00:54:39,200
 I just didn't know if there was anything we need to be concerned about with this.

727
00:54:39,200 --> 00:54:41,680
 Well, maybe concerned, but nothing we're going to be able to do about it.

728
00:54:41,680 --> 00:54:42,680
 We're tracking it.

729
00:54:42,680 --> 00:54:43,680
 Tracking.

730
00:54:43,680 --> 00:54:44,680
 Tracking.

731
00:54:44,680 --> 00:54:45,680
 Bring something that's pertinent.

732
00:54:45,680 --> 00:54:46,680
 Yes, sir.

733
00:54:46,680 --> 00:54:47,680
 Okay, great.

734
00:54:47,680 --> 00:54:51,240
 Read it, if you want to stay.

735
00:54:51,240 --> 00:54:55,080
 Alright, anything else, if not, we stand adjourned.