WEBVTT 00:00:00.000 --> 00:00:08.720 Good morning. Good morning. Let's bring the public utility board meeting of Monday, July 00:00:08.720 --> 00:00:15.440 28, 2025 to order. Are there any presentations from the public? There are not. We will move 00:00:15.440 --> 00:00:22.160 on to the consent agenda. Would any board member like to remove any item from the consent 00:00:22.160 --> 00:00:34.640 agenda? No? There's no beefs. So with that, I'll entertain a motion to approve the consent 00:00:34.640 --> 00:00:42.920 agenda, as is. Second. Motion and a second. All those in favor, please say aye. Aye. Passes 00:00:42.920 --> 00:00:50.200 unanimously. We're moving on to items for individual consideration. Item A, which is considered 00:00:50.200 --> 00:00:56.360 to the approval of the July 14th minutes. Entertain a motion for that. We have a motion 00:00:56.360 --> 00:01:05.840 and a second. Raider. Plot. All those in favor, please say aye. Aye. Any opposed? Unanimously 00:01:05.840 --> 00:01:13.160 pass. Item B, consider recommendation, recommending adoption of an ordinance of the City of Denton 00:01:13.160 --> 00:01:18.040 at Texas Home Rule Municipal Corporation authorizing the approval of the first amendment to a professional 00:01:18.040 --> 00:01:24.480 services agreement with the City of Denton and Kimley Horn. This is for the additional 00:01:24.480 --> 00:01:29.680 engineering design and construction phase for the Pecan Creek Wastewater Treatment Plant, 00:01:29.680 --> 00:01:38.360 Water Reclamation Plant. Good morning. Jason Donnell, Water Utilities Project Manager. 00:01:38.360 --> 00:01:42.520 Today for consideration, we have a design contract amendment with Kimley Horn and Associates 00:01:42.520 --> 00:01:49.600 for the Pecan Creek Water Reclamation Plant design expansion to 30MGD. The current plant 00:01:49.600 --> 00:01:55.520 was built in 1961 and has a capacity of 21 million gallons per day, is currently operating 00:01:55.520 --> 00:02:03.760 up to 85% of its capacity. TCEQ7090 rule states that once you reach 75% capacity, you need 00:02:03.760 --> 00:02:08.320 to be in design for expansion. Once you reach 90, you need to be in construction. Since 00:02:08.320 --> 00:02:16.880 we have hit that back in 2023, this particular contract was awarded to Kimley Horn through 00:02:16.880 --> 00:02:22.920 PUB and council in May and June of '23. As part of that, we had to increase our discharge 00:02:22.920 --> 00:02:30.480 limits with a two-stage permit up to 30MGD. Currently that is complete and ready to go. 00:02:30.480 --> 00:02:34.640 At the beginning of this, there was a condition assessment performed of the existing plant 00:02:34.640 --> 00:02:42.360 to develop scoring criteria for infrastructure and equipment to make sure we were in compliance 00:02:42.360 --> 00:02:48.800 regulatory or out to prove either way and to make recommendations to move forward. Comparing 00:02:48.800 --> 00:02:54.120 the rehabilitation of the existing plant to building a new plant, there is an estimated 00:02:54.120 --> 00:02:59.600 cost savings of approximately $133 million, in which it was recommended to the city to 00:02:59.600 --> 00:03:06.720 move forward and build a completely new plant at 30MGD. This chart is a cost breakdown of 00:03:06.720 --> 00:03:13.360 that exercise showing that rehabbing the plant is approximately $82.5 million. The 5MGD expansion 00:03:13.360 --> 00:03:21.720 up to 389.5, connecting the two plants together is about 12.5, after which the rehab portion 00:03:21.720 --> 00:03:29.460 would need to be replaced relatively soon due to its age, expanding that 21MGD to new. 00:03:29.460 --> 00:03:37.320 But the $636.7 million estimate completion in July of 2034, whereas rebuilding the new 00:03:37.320 --> 00:03:43.200 plant, we would carry about $5.8 million to maintain existing infrastructure while building 00:03:43.200 --> 00:03:50.400 the new one for 498, a total of $503.8, completion about two and a half years earlier in December 00:03:50.400 --> 00:04:01.640 of 2031. The current contract includes a sewer interceptor, headworks bar screen, 5MGD MBR, 00:04:01.640 --> 00:04:07.080 solids handling UV disinfection, and a 30 million gallon equalization basin, which is 00:04:07.080 --> 00:04:15.560 basically a giant pond. We're at 14.952 million. The recommended amendment includes an additional 00:04:15.560 --> 00:04:24.160 25MGD MBR to make us a total of 30MGD. It will add the biological nutrient removal to 00:04:24.160 --> 00:04:32.040 the project, some aerobic digesters, a non-pot water system for reuse, chemical feed system 00:04:32.040 --> 00:04:38.160 and operations and scatability will be included, and emergency generators. The amendment also 00:04:38.160 --> 00:04:46.360 includes the contract administration from Kimley-Horn, our resident project representative 00:04:46.360 --> 00:04:51.360 from Kimley-Horn, which will represent the city, and environmental assessment services 00:04:51.360 --> 00:05:02.760 to help the city on the environmental side, for a total of $33.792500. Any questions? 00:05:02.760 --> 00:05:03.760 Thank you. 00:05:03.760 --> 00:05:05.680 I know you'll have some. I heard you talking a minute ago. 00:05:05.680 --> 00:05:12.360 Mr. Rayner. I'd like to talk about more of my Fortalean real estate. What is the footprint 00:05:12.360 --> 00:05:15.160 on that particular site? 00:05:15.160 --> 00:05:16.160 The whole site? 00:05:16.160 --> 00:05:17.160 No, the new one. 00:05:17.160 --> 00:05:24.680 In other words, the new plant, if we vote for this, is it a two acre size, is it three 00:05:24.680 --> 00:05:25.680 acre, five acres? 00:05:25.680 --> 00:05:30.320 It's approximately 30 acres. The existing plant is on about 40. The total plant with 00:05:30.320 --> 00:05:36.400 the basins and everything is 180 acres. The actual treatment portion is on a little over 00:05:36.400 --> 00:05:44.520 40. This portion will be about 30, just south of it, in an open area. The old plant will 00:05:44.520 --> 00:05:48.760 later be demoed, and that will be open. All of that is city owned property by the water 00:05:48.760 --> 00:05:50.680 reclamation plant. It's available. 00:05:50.680 --> 00:05:56.080 Thank you. So the 40 acres, which will be leveled, then they could be used for their 00:05:56.080 --> 00:05:57.080 whatever expansion. 00:05:57.080 --> 00:06:00.640 The expansion would be the planning portion of it, yes, sir. 00:06:00.640 --> 00:06:04.920 So that's 70 acres out of approximately, would you say, 130 acres that we have? 00:06:04.920 --> 00:06:12.040 About 180 is what's being utilized. There's some equalization ponds further down for the 00:06:12.040 --> 00:06:18.800 existing plant. They will be also re-dug and increased in size for increased emergency 00:06:18.800 --> 00:06:19.800 capacity. 00:06:19.800 --> 00:06:20.800 Thank you. 00:06:20.800 --> 00:06:34.680 I knew it was coming. So I'm trying to remember, what was the original estimate of this project 00:06:34.680 --> 00:06:39.480 cost when we approved the original design contract? 00:06:39.480 --> 00:06:46.600 The original design contract in 2023, I believe there was an opinion of probable cost from 00:06:46.600 --> 00:06:53.080 the design firm of $189 million. That was for the 5M GDMBR. 00:06:53.080 --> 00:07:00.600 And so basically the retrofit is the surprise? Like the retrofit of the remaining 21? 00:07:00.600 --> 00:07:08.680 The retrofit is a huge portion, the $82.5 million, just to limp it along, and then you're 00:07:08.680 --> 00:07:14.400 basically double spending here, because you're rehabbing 60-year-old concrete, which you 00:07:14.400 --> 00:07:22.160 can only rehab the exterior, not the interior. So it would have to be replaced for a better 00:07:22.160 --> 00:07:26.580 discharge later. It's kind of double paying for it, yes, sir. 00:07:26.580 --> 00:07:32.680 There were also a few more things added other than what you spoke of. There's a building 00:07:32.680 --> 00:07:37.160 added, a new chemical feed non-pot system, and aerobic digesters due to the increase 00:07:37.160 --> 00:07:42.640 to 25. Well, those are these round structures here, which will turn some of the solids into 00:07:42.640 --> 00:07:44.320 gas, which can be reused. 00:07:44.320 --> 00:07:50.880 And so this completely replaces the existing 40 acres of facility, this 30-acre facility? 00:07:50.880 --> 00:07:56.720 Yes, sir. If you look in the picture here, the existing is this top left. The new is 00:07:56.720 --> 00:08:02.280 this bottom part. It's a little bit smaller footprint. It completely replaces everything, 00:08:02.280 --> 00:08:06.280 at which point the old one, there would be another project to demo the old one. 00:08:06.280 --> 00:08:12.060 And this is just the nature of everything's more efficient now, requires less time in 00:08:12.060 --> 00:08:15.000 process. You don't have to have as big of tanks, and that sort of thing. 00:08:15.000 --> 00:08:22.320 You can discharge faster, and the quality of the water exiting is a bit higher quality. 00:08:22.320 --> 00:08:25.280 So it's safer for the environment, too. That's the MBR technology. 00:08:25.280 --> 00:08:27.280 Okay. Thank you. 00:08:27.280 --> 00:08:29.280 Yes, sir. 00:08:29.280 --> 00:08:54.180 I'm going back to the cost comparison. At what point did we start the consideration 00:08:54.180 --> 00:08:57.720 of the new plant? 00:08:57.720 --> 00:08:59.720 Over a rehabbing? 00:08:59.720 --> 00:09:00.720 Yes. 00:09:00.720 --> 00:09:05.080 I came on board here in January of '24. It was shortly thereafter when we met with exec 00:09:05.080 --> 00:09:10.360 staff and our internal engineering team to go over the cost models. It was about that 00:09:10.360 --> 00:09:14.720 time we started considering that. A few months later, with recommendations to the consultant, 00:09:14.720 --> 00:09:16.880 that was the decision. 00:09:16.880 --> 00:09:24.480 Okay. The cost savings, what was the original estimate? Back up a little bit. I'm sorry, 00:09:24.480 --> 00:09:25.480 you said it a moment ago. 00:09:25.480 --> 00:09:31.440 The original was $189 million. Back in 2023, it was a very early cost, opinion of probable 00:09:31.440 --> 00:09:33.840 cost from the engineering firm. 00:09:33.840 --> 00:09:41.840 Right. Okay. But 636 is what we think is the real number for the existing plant rehab, 00:09:41.840 --> 00:09:42.840 right? 00:09:42.840 --> 00:09:44.920 It's going to be as close as we can get. 00:09:44.920 --> 00:09:45.920 Yes, sir. 00:09:45.920 --> 00:09:46.920 That's your guess. That's your estimate. 00:09:46.920 --> 00:09:52.200 That's a very difficult guess going 10 years out for the construction cost. That's as close 00:09:52.200 --> 00:09:56.800 as we've been able to get to it. We're fairly confident we're within 10%. 00:09:56.800 --> 00:10:09.580 Gotcha. Okay. That's all I got. Anybody else? 00:10:09.580 --> 00:10:11.760 Extended life for the new one was the question. 00:10:11.760 --> 00:10:17.560 The planned life for a new plant is 50 years. The planned equipment life is 30 years. All 00:10:17.560 --> 00:10:23.400 of this can be extended with money. Better maintenance and replacing workwear parts can 00:10:23.400 --> 00:10:24.760 extend that. 00:10:24.760 --> 00:10:31.560 So the new plant, potentially 50 years, and then parts you said for 30? 00:10:31.560 --> 00:10:35.000 Equipment, motors, and pumps. They have a planned life of 30. 00:10:35.000 --> 00:10:37.240 The 50 years, just the shell itself. 00:10:37.240 --> 00:10:38.240 Yes, sir. 00:10:38.240 --> 00:10:45.560 So really, other than the cost of the shell, what we're looking at is the part or the years 00:10:45.560 --> 00:10:48.280 for the part changes, really, wouldn't it be? 00:10:48.280 --> 00:10:51.280 The whole lot of equipment, yes, sir. 00:10:51.280 --> 00:10:54.720 Yeah. Okay. Thank you. 00:10:54.720 --> 00:11:00.760 Okay. So any more questions on this? 00:11:00.760 --> 00:11:04.640 Do we have approval? 00:11:04.640 --> 00:11:06.840 We have a motion to approve. 00:11:06.840 --> 00:11:07.840 Second. 00:11:07.840 --> 00:11:13.080 And a second. Any further discussion? If not, all those in favor, please say aye. 00:11:13.080 --> 00:11:14.080 Aye. 00:11:14.080 --> 00:11:17.720 Any opposed? Doesn't appear to be. Passes unanimously. 00:11:17.720 --> 00:11:27.040 All right. We're moving on to item C. Consider recommending adoption of an ordinance for 00:11:27.040 --> 00:11:36.160 the city manager to execute a contract with RDO equipment for if over 50,000, we go to 00:11:36.160 --> 00:11:45.680 a competitive bidding. The first one is 371,000 for approval. 00:11:45.680 --> 00:11:54.080 I guess there's no, nobody's presenting anything. 00:11:54.080 --> 00:11:56.120 That's all right. 00:11:56.120 --> 00:11:57.680 Good morning, Brenda Haney. There is no- 00:11:57.680 --> 00:11:59.440 I'm sorry, I read the wrong thing. 00:11:59.440 --> 00:12:02.280 Okay, perfect. I thought that was on consent, so we did not want to bring it up. 00:12:02.280 --> 00:12:03.280 That would be me. Thank you. 00:12:03.280 --> 00:12:04.280 Yeah, perfect. 00:12:04.280 --> 00:12:05.280 Just testing. Thank you very much. 00:12:05.280 --> 00:12:11.960 Yeah, thank you. Yeah. Okay. I guess we're moving on to the fun part. This is item C. 00:12:11.960 --> 00:12:16.960 Consider recommending approval of a solid waste fund fiscal year 2025-26 operating in 00:12:16.960 --> 00:12:22.160 capital budget. There appears to be a presentation on this item. 00:12:22.160 --> 00:12:25.360 Popcorn outside. 00:12:25.360 --> 00:12:29.360 That's right. 00:12:29.360 --> 00:12:37.680 All right. Good morning, Chair, members of the board, Matt Hamilton, ADF Finance, here 00:12:37.680 --> 00:12:45.200 to present a number of presentations, each for the utilities, and then we also have some 00:12:45.200 --> 00:12:55.280 items as well for you specific to rate recommendations as well. We provided just a printout for you, 00:12:55.280 --> 00:13:01.200 which was the same as the backup information for each of these items, just so that it was 00:13:01.200 --> 00:13:05.920 a little bit larger because we know some of the numbers on the screen can be a little 00:13:05.920 --> 00:13:12.280 small and we had a request last week, or excuse me, at the prior meeting to provide the breakout 00:13:12.280 --> 00:13:23.320 of the CIP projects, which is what that exhibit is, is the full list of the projects. Myself 00:13:23.320 --> 00:13:28.360 and also the departments are here to answer any questions that you may have in regard 00:13:28.360 --> 00:13:33.600 to the budget or in regard to those specific projects. 00:13:33.600 --> 00:13:43.160 So starting with solid waste, as we had talked about at the last meeting, solid waste has 00:13:43.160 --> 00:13:50.120 proposed a 4.2% increase to their budget for fiscal year 2026. However, there is no base 00:13:50.120 --> 00:13:59.880 rate increase proposed for 2026. There are some minor changes to the rate ordinance that 00:13:59.880 --> 00:14:08.520 we'll get into in another slide. As we went through the zero base budgeting process this 00:14:08.520 --> 00:14:13.640 year, which was new to the city and we went through it citywide, solid waste identified 00:14:13.640 --> 00:14:25.360 $980,000 in reductions, $212,000 in personnel by reducing the number of deputy directors 00:14:25.360 --> 00:14:34.680 from 2 to 1, $209,000 in materials and supplies, $17,500 in maintenance and repair, $397,000 00:14:34.680 --> 00:14:42.180 in operations, and $144,000 in fixed assets, which related to rehabbing the containers 00:14:42.180 --> 00:14:47.520 rather than replacing them. 00:14:47.520 --> 00:14:52.760 So proposed rate schedule updates, again, no base rate increase is proposed for solid 00:14:52.760 --> 00:14:59.000 waste. However, we are proposing adding a category called front load, side load, shared 00:14:59.000 --> 00:15:08.760 services to the rate schedule. These are existing charges for refuge and recycling but are not 00:15:08.760 --> 00:15:14.600 currently clearly defined in the rate schedule, so you just create its own category and make 00:15:14.600 --> 00:15:22.520 it clear that that's what the current rates are. And then clarifying that re-delivery 00:15:22.520 --> 00:15:28.520 is part of the delivery service fee, and so this relates to primarily when there's a 00:15:28.520 --> 00:15:36.320 disconnection in service and then solid waste re-delivers a cart to the property when the 00:15:36.320 --> 00:15:48.120 service is resumed and then reducing the per item bulk collection limit from 10 to 5. 00:15:48.120 --> 00:15:52.440 So taking a look at the five-year preliminary forecast, this is the same forecast that we 00:15:52.440 --> 00:16:05.960 had reviewed at the prior meeting. The proposed fiscal year 2026 budget is $45,353,673. Again, 00:16:05.960 --> 00:16:18.360 there is no -- I'm sorry, that's on the revenue side. Expenditures of $44,949,845 and no base 00:16:18.360 --> 00:16:24.120 rate increase. 00:16:24.120 --> 00:16:29.560 So the solid waste five-year capital plan for fiscal year 2026, the big project is the 00:16:29.560 --> 00:16:36.580 organics program and the infrastructure associated with it. $7.2 million in vehicle replacements 00:16:36.580 --> 00:16:45.960 and $448,000 in vehicle additions for a total of $21.7 million. $18.2 million of that being 00:16:45.960 --> 00:16:53.120 debt funded and $3.4 million being revenue funded. As we talked about at the last meeting, 00:16:53.120 --> 00:16:58.820 as you'll see in starting fiscal year 27, all of the vehicles will be revenue funded 00:16:58.820 --> 00:17:06.360 and so we're making a concerted effort to revenue fund more of the capital program as 00:17:06.360 --> 00:17:13.200 we move forward. Any questions on solid waste? 00:17:13.200 --> 00:17:15.440 Mr. Reiner. 00:17:15.440 --> 00:17:23.820 Slide number three. On the re-delivery, that would be on an existing client, gotten arrears, 00:17:23.820 --> 00:17:28.760 it was closed, you removed it, but that's only for that existing client to have it back, 00:17:28.760 --> 00:17:33.280 it's not for a new one coming in. That charge is not involved at all. 00:17:33.280 --> 00:17:34.280 That's correct. 00:17:34.280 --> 00:17:35.280 All right. Thank you. 00:17:35.280 --> 00:17:44.560 One more on this slide. The bulk item collection, is it 10 items or 10 pickups down to five? 00:17:44.560 --> 00:17:45.560 Items or pickups? 00:17:45.560 --> 00:17:46.560 Items. 00:17:46.560 --> 00:17:47.840 See, I knew I'd get you up there. 00:17:47.840 --> 00:17:50.520 I'm sorry to get you up there all the way. 00:17:50.520 --> 00:17:51.520 That was one of them. 00:17:51.520 --> 00:17:55.160 Brenda Haney, Director of Solid Waste. Yes, we're reducing the number of items that we're 00:17:55.160 --> 00:18:01.360 picking up at each location from 10 to five, starting with the next fiscal year. 00:18:01.360 --> 00:18:05.800 Is that five per week or is that like five per- 00:18:05.800 --> 00:18:11.400 It's per collection cycle, so it is per week. 00:18:11.400 --> 00:18:15.760 The other thing in full disclosure, multifamily units are using a lot of this and what we've 00:18:15.760 --> 00:18:20.120 asked them to do, what they've done has been very creative and they have multiple places 00:18:20.120 --> 00:18:24.840 throughout their complex where they have 10 items and we've asked them to consolidate 00:18:24.840 --> 00:18:27.600 it and put it at one location. 00:18:27.600 --> 00:18:33.360 A lot of the intent behind this program was to facilitate the cleanup and maintenance 00:18:33.360 --> 00:18:37.840 of some of those smaller units that didn't have on-site personnel to handle those items 00:18:37.840 --> 00:18:42.200 and so we wanted to provide them an avenue for getting rid of those bulk items, particularly 00:18:42.200 --> 00:18:45.520 when people are moving in and moving out. 00:18:45.520 --> 00:18:50.620 What we found is the bigger units, bigger complexes that have the capacity and the staff 00:18:50.620 --> 00:18:55.880 on board to help with that are taking advantage of the system a little bit. 00:18:55.880 --> 00:19:00.920 I know for residential it's great because it prevents dumping because a lot of times 00:19:00.920 --> 00:19:06.240 renters move out and they have some old furniture and instead of it ending up in the creek, 00:19:06.240 --> 00:19:09.040 they just put it on the curb and it gets taken away once a year. 00:19:09.040 --> 00:19:13.760 It's a balancing act of making sure that we get an appropriate number to accommodate 00:19:13.760 --> 00:19:19.840 the needs of people and not encourage the illegal dumping of those items. 00:19:19.840 --> 00:19:21.800 Thank you. 00:19:21.800 --> 00:19:24.200 You're welcome. 00:19:24.200 --> 00:19:25.640 Okay. 00:19:25.640 --> 00:19:26.640 Thank you. 00:19:26.640 --> 00:19:27.640 All right. 00:19:27.640 --> 00:19:28.640 Thank you. 00:19:28.640 --> 00:19:37.800 Those are the questions I believe that you have, the preliminary budget reductions. 00:19:37.800 --> 00:19:38.800 Okay. 00:19:38.800 --> 00:19:39.800 That says it. 00:19:39.800 --> 00:19:40.800 That's fine. 00:19:40.800 --> 00:19:41.800 Okay. 00:19:41.800 --> 00:19:42.800 That's all I got. 00:19:42.800 --> 00:19:43.800 Anybody else? 00:19:43.800 --> 00:19:44.800 All right. 00:19:44.800 --> 00:19:45.800 Anybody? 00:19:45.800 --> 00:19:46.800 Entertain a motion to approve. 00:19:46.800 --> 00:19:47.800 I'll move approval. 00:19:47.800 --> 00:19:48.800 Second. 00:19:48.800 --> 00:19:49.800 We have a motion and a second. 00:19:49.800 --> 00:19:50.800 All those in favor please say aye. 00:19:50.800 --> 00:19:51.800 Aye. 00:19:51.800 --> 00:19:52.800 It's unanimous. 00:19:52.800 --> 00:19:53.800 Thank you very much. 00:19:53.800 --> 00:20:00.320 We're moving on to item D, water fund. 00:20:00.320 --> 00:20:03.440 You read the whole thing, shouldn't I? 00:20:03.440 --> 00:20:08.600 Consider recommending approval of the water fund fiscal year 2025-26 operating on the 00:20:08.600 --> 00:20:11.880 capital budget. 00:20:11.880 --> 00:20:15.280 Okay. 00:20:15.280 --> 00:20:20.760 Matt Hamilton, ADF Finance, here to present the water proposed budget for fiscal year 00:20:20.760 --> 00:20:23.480 2025-26. 00:20:23.480 --> 00:20:29.240 The water budget has a total increase of 6.3% over the budget for last year. 00:20:29.240 --> 00:20:35.160 What is being proposed is a 3% rate increase for residential and commercial as well as 00:20:35.160 --> 00:20:39.520 industrial and we'll get into some slides that detail exactly what those rate increases 00:20:39.520 --> 00:20:40.520 look like. 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. 00:20:47.600 --> 00:21:00.480 Revenue projections of 59,167,356 and expense projections of 62,799,520. 00:21:00.480 --> 00:21:08.960 The water fund anticipates holding two vacancies vacant through fiscal year 2026. 00:21:08.960 --> 00:21:13.120 A retail rate study and wholesale rate study have been completed this year and that was 00:21:13.120 --> 00:21:18.080 factored into the creation of the budget. 00:21:18.080 --> 00:21:23.080 Also just to note that the WIFIA and Texas Water Development Board funding is also included 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 00:21:30.680 --> 00:21:35.440 plan with the investment portfolio just from a cash management perspective and that just 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 00:21:43.280 --> 00:21:45.680 we're managing that cash flow well. 00:21:45.680 --> 00:21:56.600 And then of course just balancing affordability with the growth of the city. 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 00:22:03.600 --> 00:22:13.480 in revenue, 62.7 million in expenditures, and a 3% rate increase on residential, commercial, 00:22:13.480 --> 00:22:19.940 and 297% on treated water. 00:22:19.940 --> 00:22:26.880 So getting into the preliminary rate changes or proposed rate changes for residential and 00:22:26.880 --> 00:22:35.240 commercial, inside the corporate limits a 3% rate increase, for residential and commercial 00:22:35.240 --> 00:22:43.360 service outside the corporate limits a 3% increase, for irrigation that is metered both 00:22:43.360 --> 00:22:51.320 residential and commercial inside corporate limits 3%, and the same outside corporate 00:22:51.320 --> 00:22:58.420 limits of 3%, a 3% increase on metered water from hydrants. 00:22:58.420 --> 00:22:59.420 What is that? 00:22:59.420 --> 00:23:04.200 Is that the dollar? 00:23:04.200 --> 00:23:05.200 Yes, sorry the... 00:23:05.200 --> 00:23:06.200 [inaudible] 00:23:06.200 --> 00:23:07.200 Okay. 00:23:07.200 --> 00:23:08.200 Got it. 00:23:08.200 --> 00:23:09.200 Okay. 00:23:09.200 --> 00:23:22.440 On the wholesale well water, one change, we currently have a specific rate in the book 00:23:22.440 --> 00:23:26.240 of 96 cents for opportunity. 00:23:26.240 --> 00:23:32.720 The contract actually stipulates it's 85% of the Dallas wholesale untreated water rate. 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 00:23:37.440 --> 00:23:38.980 85%. 00:23:38.980 --> 00:23:48.280 And the reason for this is that both Denton and Dallas contemplate rate increases through 00:23:48.280 --> 00:23:50.080 the budget process at the same time. 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 00:23:59.960 --> 00:24:05.560 in Dallas will be until late in the fall. 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 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 00:24:19.160 --> 00:24:21.160 rate that we're charging. 00:24:21.160 --> 00:24:22.160 Question? 00:24:22.160 --> 00:24:24.360 Mr. Rainey. 00:24:24.360 --> 00:24:27.720 So is this a contractual agreement on the 85%? 00:24:27.720 --> 00:24:28.720 Yes. 00:24:28.720 --> 00:24:34.100 And so that stays the same. 00:24:34.100 --> 00:24:36.600 Dallas comes up with a number. 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 00:24:42.880 --> 00:24:46.000 but make sure that it falls within the 85%? 00:24:46.000 --> 00:24:48.000 Is that kind of how I'm seeing it? 00:24:48.000 --> 00:24:50.080 Our number is the 85%. 00:24:50.080 --> 00:24:51.080 Okay. 00:24:51.080 --> 00:24:54.240 So we're just really tied to whatever Dallas wishes. 00:24:54.240 --> 00:24:55.240 Yes. 00:24:55.240 --> 00:24:56.240 So if it goes up, it goes up. 00:24:56.240 --> 00:25:01.640 If it goes down, we'll take a picture. 00:25:01.640 --> 00:25:03.200 That's really what we're looking at, right? 00:25:03.200 --> 00:25:04.200 Yeah. 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 00:25:08.640 --> 00:25:16.260 the contract rather than a rate which the rate would be essentially a year behind because 00:25:16.260 --> 00:25:20.720 we won't know what that is until after Dallas adopts. 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 00:25:24.840 --> 00:25:27.680 out of the room to tell us what that number will be? 00:25:27.680 --> 00:25:31.160 I believe we just reference what Dallas publishes. 00:25:31.160 --> 00:25:32.160 Okay. 00:25:32.160 --> 00:25:33.160 Thank you. 00:25:33.160 --> 00:25:34.160 Thank you, Doug. 00:25:34.160 --> 00:25:35.160 Okay. 00:25:35.160 --> 00:25:36.160 Follow up. 00:25:36.160 --> 00:25:37.160 Thank you. 00:25:37.160 --> 00:25:38.160 Yeah. 00:25:38.160 --> 00:25:47.120 So on the opportunity pass-through rates, is that 96 cents or 85% of Dallas wholesale, 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? 00:25:56.440 --> 00:26:05.160 Shorter than that, good morning, PV, Stephen Gage, General Manager of Water Utilities. 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 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. 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 00:26:18.520 --> 00:26:19.520 thousand gallon? 00:26:19.520 --> 00:26:24.680 Per thousand gallons delivered and that's to the customers they have at City of Crum 00:26:24.680 --> 00:26:25.680 and Sanger. 00:26:25.680 --> 00:26:33.120 And so they purchase the water from us and deliver to Crum and Sanger. 00:26:33.120 --> 00:26:36.400 But it goes through some kind of wholesale facility, like they have tanks and pumps? 00:26:36.400 --> 00:26:39.100 They actually have metered connections. 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 00:26:45.560 --> 00:26:48.000 the metering connection for Sanger. 00:26:48.000 --> 00:26:53.140 And so that's the point of delivery for those two wholesale connections. 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 00:26:58.560 --> 00:26:59.560 rate study. 00:26:59.560 --> 00:27:00.560 Is that the result of that? 00:27:00.560 --> 00:27:01.560 Yeah, and this is the result of that. 00:27:01.560 --> 00:27:02.560 We hadn't raised the rate. 00:27:02.560 --> 00:27:07.920 I mean, last year we did a modest increase based off of CPI. 00:27:07.920 --> 00:27:13.400 And we did the rate study and it demonstrated that we were woefully undercharging for treated 00:27:13.400 --> 00:27:14.400 water. 00:27:14.400 --> 00:27:15.400 Okay. 00:27:15.400 --> 00:27:16.400 Thank you. 00:27:16.400 --> 00:27:17.400 All right. 00:27:17.400 --> 00:27:18.400 Thanks. 00:27:18.400 --> 00:27:28.440 Okay. 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. 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 00:27:48.440 --> 00:27:55.000 Denton's rates currently are and where they will be with the proposed increases. 00:27:55.000 --> 00:28:02.200 Keep in mind these other comparison cities have not finished their budget process and 00:28:02.200 --> 00:28:11.440 so it is assumed that some of their rates would increase as well. 00:28:11.440 --> 00:28:18.720 So not much of a change on the residential proposed in relation to the comparison cities 00:28:18.720 --> 00:28:21.520 where we are currently on commercial rates. 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 00:28:31.160 --> 00:28:40.000 with the proposed rates, which is essentially in line with Frisco, Plano, and McKinney. 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 00:28:45.100 --> 00:28:47.000 the specific projects. 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 00:28:57.240 --> 00:29:04.120 WIFIA and 55.6 million, a combination of CEOs and the Texas Water Development Board, and 00:29:04.120 --> 00:29:07.440 then 1.3 million in revenue funding. 00:29:07.440 --> 00:29:11.960 Any questions? 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? 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 00:29:28.320 --> 00:29:34.840 and meters going down at this point? 00:29:34.840 --> 00:29:42.820 >> So development right now in Denton is remaining the same as far as you can project? 00:29:42.820 --> 00:29:43.820 >> Very active. 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 00:29:51.280 --> 00:29:57.140 we can show that we have grown much more rapidly than we had anticipated. 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 00:30:02.320 --> 00:30:03.320 on track to -- 00:30:03.320 --> 00:30:05.200 >> But nothing now? 00:30:05.200 --> 00:30:06.200 >> Nothing now. 00:30:06.200 --> 00:30:10.040 We're not -- we're really not seeing any lag in development at all right now. 00:30:10.040 --> 00:30:11.040 >> Okay. 00:30:11.040 --> 00:30:12.040 All right. 00:30:12.040 --> 00:30:13.040 Thanks. 00:30:13.040 --> 00:30:14.040 >> You're welcome. 00:30:14.040 --> 00:30:15.040 >> Just curious. 00:30:15.040 --> 00:30:16.040 All right. 00:30:16.040 --> 00:30:22.240 If there aren't any more questions, entertain a motion to approve this item. 00:30:22.240 --> 00:30:23.240 Any other motion? 00:30:23.240 --> 00:30:24.240 >> Second. 00:30:24.240 --> 00:30:25.360 >> We have a second. 00:30:25.360 --> 00:30:34.200 You know the two guys are going to have to participate here. 00:30:34.200 --> 00:30:36.200 All those in favor, please say aye. 00:30:36.200 --> 00:30:37.200 >> Aye. 00:30:37.200 --> 00:30:38.200 >> Thank you. 00:30:38.200 --> 00:30:39.200 It's unanimous votes. 00:30:39.200 --> 00:30:40.200 All right. 00:30:40.200 --> 00:30:46.200 Moving on to item F, consider approval of the electric fund. 00:30:46.200 --> 00:30:50.720 I want to waste water, I'm sorry. 00:30:50.720 --> 00:31:00.980 Water, waste water, okay. 00:31:00.980 --> 00:31:02.840 >> Okay. 00:31:02.840 --> 00:31:04.840 Waste water fund. 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 00:31:16.040 --> 00:31:22.440 of 11%, which we'll get into in the future slides. 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 00:31:29.360 --> 00:31:32.400 no proposed rate increase for drainage. 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 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 00:31:42.680 --> 00:31:50.800 cost of service proposed rates for drainage in the 2027 budget. 00:31:50.800 --> 00:31:57.680 Expense projections for waste water, 44.1 million, drainage, 7.1 million, and all vehicle 00:31:57.680 --> 00:32:01.480 replacements are budgeted to be revenue funded. 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 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 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. 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, 00:32:38.920 --> 00:32:43.680 but we've broken the two out just so that you can see each component individually. 00:32:43.680 --> 00:32:53.380 So for drainage, 5.8 million in revenue and 7.1 million in expense. 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 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. 00:33:07.320 --> 00:33:13.020 That transfer didn't occur, and so that funding you can see, their fund balance increased 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 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 00:33:28.640 --> 00:33:34.000 the fund balance to the target of a million dollars. 00:33:34.000 --> 00:33:39.360 So this is the waste water and drainage five-year forecast with those two combined. 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 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 00:33:57.000 --> 00:34:02.040 into the job, into the channel rehab account. 00:34:02.040 --> 00:34:12.200 Okay, so preliminary rate changes proposed for the Wastewater Fund Residential Service, 00:34:12.200 --> 00:34:17.280 increasing 11% both in and outside of the city limits. 00:34:17.280 --> 00:34:26.200 It also applies to accounts that do not have City of Denton Water Service. 00:34:26.200 --> 00:34:32.760 Commercial Home Park Service, an 11% increase both inside and outside the limits. 00:34:32.760 --> 00:34:39.160 Commercial and Industrial, an 11% increase inside and outside the limits. 00:34:39.160 --> 00:34:44.240 Commercial and Industrial Metered and Submetered accounts, an 11% increase. 00:34:44.240 --> 00:34:52.520 Septage and Chemical Toilet Disposal and Restaurant and Food Establishments, an 11% increase. 00:34:52.520 --> 00:34:59.320 Oil of treated affluence, wholesale wastewater treatment, and the dino dirt products are 00:34:59.320 --> 00:35:04.040 also included in the 11% increase. 00:35:04.040 --> 00:35:08.760 These are the same charts as you saw in the previous presentation with water and wastewater 00:35:08.760 --> 00:35:12.280 combined. 00:35:12.280 --> 00:35:21.320 So essentially, remaining where we were relative to the comparative cities on residential, 00:35:21.320 --> 00:35:29.360 and for commercial increasing in alignment with Frisco, Plano, and McKinney. 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, 00:35:37.600 --> 00:35:44.360 which is primarily made up of the plant improvements. 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. 00:35:54.960 --> 00:35:58.520 And any questions? 00:35:58.520 --> 00:36:04.140 I have a question on the capital, the Pecan Creek, what we just approved earlier. 00:36:04.140 --> 00:36:08.880 Have those numbers been adjusted or because it looks like it's the higher number, and 00:36:08.880 --> 00:36:18.320 I realize engineering is in there. 00:36:18.320 --> 00:36:20.160 Jason's on that water utilities. 00:36:20.160 --> 00:36:24.440 The numbers you see are a little bit higher due to our internal staff being requested 00:36:24.440 --> 00:36:30.040 by the EPA to add an additional contingency percent due to the rising cost of construction. 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. 00:36:35.320 --> 00:36:36.320 Thank you. 00:36:36.320 --> 00:36:42.700 I'd rather plan for contingencies, too. 00:36:42.700 --> 00:36:47.580 Any other questions? 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 00:36:52.160 --> 00:36:53.160 five years. 00:36:53.160 --> 00:36:54.160 Yes. 00:36:54.160 --> 00:37:00.240 And we just saw the presentation on seeking the most cost-effective means to meet our 00:37:00.240 --> 00:37:05.040 growing wastewater demand and changing our plans from rehabbing the existing facility 00:37:05.040 --> 00:37:08.160 to building a new one, because it will save us $100 million. 00:37:08.160 --> 00:37:14.440 But still, $100 million savings still leaves us with a billion dollars. 00:37:14.440 --> 00:37:20.000 So an 11% increase is a substantial rate increase. 00:37:20.000 --> 00:37:24.040 What was the last year we had a rate increase? 00:37:24.040 --> 00:37:27.200 The rates did increase last year, 11% as well. 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. 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. 00:37:40.560 --> 00:37:49.880 Yeah, and I'll just note -- let me go back to the forecast real quick. 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, 00:37:58.080 --> 00:38:05.480 the forecast rate increases do decline, and so we do anticipate, as we move forward, that 00:38:05.480 --> 00:38:12.960 we won't have rate increases that are as, you know, high as 11%. 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 00:38:18.000 --> 00:38:25.400 will return back down to, you know, more normal levels, just based on, you know, inflation 00:38:25.400 --> 00:38:35.260 and operating increases and things. 00:38:35.260 --> 00:38:38.260 Any further questions or discussion? 00:38:38.260 --> 00:38:49.480 We have a motion and a second. 00:38:49.480 --> 00:38:51.200 All in favor, please say aye. 00:38:51.200 --> 00:38:52.200 Aye. 00:38:52.200 --> 00:38:54.260 The motion carries unanimously. 00:38:54.260 --> 00:38:59.880 The next item on the agenda is item F, consider recommending approval of the electric fund 00:38:59.880 --> 00:39:04.960 for fiscal year '25, '26. 00:39:04.960 --> 00:39:08.560 Okay. 00:39:08.560 --> 00:39:17.040 So jumping into electric, for fiscal year 2026, we're proposing a 34.2% increase as 00:39:17.040 --> 00:39:21.320 a -- compared to the '25 budget. 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. 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 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 00:39:40.760 --> 00:39:46.720 know, just as the summer has evolved, you know, want to update that forecast. 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 00:39:52.960 --> 00:39:58.000 it and provide an updated recommendation to counsel before budget adoption. 00:39:58.000 --> 00:40:01.440 So I just wanted to note that. 00:40:01.440 --> 00:40:07.320 There is no base rate increase proposed for DME in fiscal year '26. 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 00:40:13.080 --> 00:40:15.640 and the TCRF annually. 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 00:40:21.400 --> 00:40:25.800 strengthen the fund's financials by having that reserve target. 00:40:25.800 --> 00:40:35.280 Revenue projections of $526.6 million and expense projections of $509.5 million. 00:40:35.280 --> 00:40:42.060 Through the zero-based budgeting process, DME was also able to identify $3.3 million 00:40:42.060 --> 00:40:48.200 reductions, one being the winter and summer outage insurance. 00:40:48.200 --> 00:40:54.600 And we just want to note that we still have contingency funds available for, you know, 00:40:54.600 --> 00:40:58.520 any unexpected outage. 00:40:58.520 --> 00:41:06.560 The campus expansion, revenue funding, the design piece of that, which reduced the debt 00:41:06.560 --> 00:41:14.240 service by almost $1 million, and then reducing the focused advocacy contract of $72,000, 00:41:14.240 --> 00:41:17.360 which is a lobbying contract. 00:41:17.360 --> 00:41:25.880 Additionally, DME intends to hold six vacancies throughout 2026, which contributes to that 00:41:25.880 --> 00:41:30.080 $3.3 million in savings. 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 00:41:40.240 --> 00:41:50.000 in expense for a net income of $17 million and no base rate increase. 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, 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 00:42:05.880 --> 00:42:10.120 and another $4 million in development contributions. 00:42:10.120 --> 00:42:17.600 Just as an overview, new residential and commercial, $8.3 million in projects, distribution, transformers 00:42:17.600 --> 00:42:24.760 and substations, $18.2 million, transmission lines and substations, $12.2 million, feeder 00:42:24.760 --> 00:42:31.060 extension and improvements, $11.1 million, meter improvements, $1.8 million, street lighting 00:42:31.060 --> 00:42:36.760 and power factor improvements of just under a million, technology and electric relocations 00:42:36.760 --> 00:42:42.640 of $9.9 million, and again, revenue funding vehicles of $1.47 million. 00:42:42.640 --> 00:42:53.960 We did want to mention, as we had mentioned to counsel previously, that DME is looking 00:42:53.960 --> 00:43:00.080 at some transmission overload projects which are pending ERCOT approval. 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 00:43:06.900 --> 00:43:14.520 budget amendment for the debt service, and then as those assets are energized, you know, 00:43:14.520 --> 00:43:18.080 the offsetting revenue associated with those as well. 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 00:43:23.680 --> 00:43:27.760 the future. 00:43:27.760 --> 00:43:33.640 So looking at the capital plan for fiscal year 2026, $63.9 million. 00:43:33.640 --> 00:43:38.880 As I mentioned, $58.4 million debt funded, $1.4 million revenue funded, and $4 million 00:43:38.880 --> 00:43:42.520 from developer contributions. 00:43:42.520 --> 00:43:47.960 And any questions? 00:43:47.960 --> 00:43:48.960 Ms. Parker? 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 00:43:54.040 --> 00:43:57.440 if they're not going to impact reliability or service? 00:43:57.440 --> 00:44:00.680 Well, the short answer is no. 00:44:00.680 --> 00:44:06.440 Those are positions that were actually added for this fiscal year that we've not filled, 00:44:06.440 --> 00:44:08.840 and so we felt comfortable keeping them unfilled. 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 00:44:14.960 --> 00:44:21.280 office. 00:44:21.280 --> 00:44:25.760 Now you've got a lot of transmission line considerations going on. 00:44:25.760 --> 00:44:27.880 So save those questions for later. 00:44:27.880 --> 00:44:31.520 I'm sure you'll have some work to do on that. 00:44:31.520 --> 00:44:33.160 Anybody else? 00:44:33.160 --> 00:44:34.160 Okay. 00:44:34.160 --> 00:44:35.160 All right. 00:44:35.160 --> 00:44:38.520 And we will entertain a motion to approve this item. 00:44:38.520 --> 00:44:41.120 We have a motion. 00:44:41.120 --> 00:44:42.120 Second. 00:44:42.120 --> 00:44:43.120 Second. 00:44:43.120 --> 00:44:44.120 Thank you. 00:44:44.120 --> 00:44:45.120 I know it. 00:44:45.120 --> 00:44:46.120 I know it well. 00:44:46.120 --> 00:44:47.120 You know, thanks. 00:44:47.120 --> 00:44:50.480 You do it for Deb and not for me. 00:44:50.480 --> 00:44:52.120 All those in favor, please say aye. 00:44:52.120 --> 00:44:53.120 Aye. 00:44:53.120 --> 00:44:54.120 Passes unanimously. 00:44:54.120 --> 00:45:01.120 Moving on to item G, which is customer service. 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 00:45:09.920 --> 00:45:13.880 in revenue and $11.8 million in expense. 00:45:13.880 --> 00:45:19.480 As a reminder, the customer service fund is an internal service fund that is funded by 00:45:19.480 --> 00:45:28.700 the utilities in order to, you know, complete utility billing on their behalf. 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 00:45:34.760 --> 00:45:41.040 pays $1.3 million in credit card fees and e-check processing fees. 00:45:41.040 --> 00:45:48.640 The city currently doesn't have a dedicated fee to recover that cost. 00:45:48.640 --> 00:45:55.840 So we talked about a number of options, and we took the PUB's feedback. 00:45:55.840 --> 00:45:58.480 We presented the information to council. 00:45:58.480 --> 00:46:03.140 Council had very similar feedback to the board. 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 00:46:09.880 --> 00:46:17.080 rate convenience fee, the options related to percentage-based fee, potentially a tiered 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 00:46:22.440 --> 00:46:26.200 type, whether it's residential or commercial, et cetera. 00:46:26.200 --> 00:46:32.280 So just wanted to let you know that staff is still looking into these options. 00:46:32.280 --> 00:46:34.760 It's not as straightforward as just flipping a switch. 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 00:46:40.880 --> 00:46:48.740 with the city's vendors to ensure that it's feasible to move forward. 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 00:46:56.240 --> 00:47:00.860 your recommendation on the implementation of that fee. 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 00:47:07.960 --> 00:47:10.400 funds into the customer service fund. 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, 00:47:15.540 --> 00:47:25.160 would be that the transfers from the utilities would be lowered, and the utilities would 00:47:25.160 --> 00:47:27.640 see a savings in their funds. 00:47:27.640 --> 00:47:34.880 So from a customer service fund budget perspective, this $11.8 million in revenue and expense 00:47:34.880 --> 00:47:37.240 would be unchanged. 00:47:37.240 --> 00:47:40.800 It's just a matter of where that funding comes from. 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, 00:47:44.920 --> 00:47:53.960 it's going to be seen in the utility funds, which then would help their funds. 00:47:53.960 --> 00:48:00.760 Could you go back to slide three, please? 00:48:00.760 --> 00:48:10.320 So the cost recovery options, those four points are directly related to how to address the 00:48:10.320 --> 00:48:11.720 $1.3 million. 00:48:11.720 --> 00:48:12.760 Correct. 00:48:12.760 --> 00:48:16.840 So the individuals, because they're using credit cards and that. 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 00:48:23.480 --> 00:48:25.120 and pay cash or a check? 00:48:25.120 --> 00:48:26.680 They will be? 00:48:26.680 --> 00:48:27.680 Correct. 00:48:27.680 --> 00:48:28.680 Okay. 00:48:28.680 --> 00:48:29.680 Thank you. 00:48:29.680 --> 00:48:30.680 Yes. 00:48:30.680 --> 00:48:31.680 Yes. 00:48:31.680 --> 00:48:32.680 Yeah. 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 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. 00:48:48.280 --> 00:48:49.400 So yeah. 00:48:49.400 --> 00:48:50.400 Yeah. 00:48:50.400 --> 00:48:53.120 Did you say, I'm sorry, did you say a debit card? 00:48:53.120 --> 00:48:57.480 This is for both of them, right? 00:48:57.480 --> 00:48:58.480 It is both. 00:48:58.480 --> 00:48:59.480 Okay. 00:48:59.480 --> 00:49:00.480 Yes. 00:49:00.480 --> 00:49:01.480 I'm sorry, I missed it. 00:49:01.480 --> 00:49:02.480 What is both then? 00:49:02.480 --> 00:49:03.480 Debit and credit. 00:49:03.480 --> 00:49:05.840 Oh, so this fee could be for the debit as well then? 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 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. 00:49:18.320 --> 00:49:19.320 Okay. 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, 00:49:24.640 --> 00:49:32.360 what the card processors and the rules around each, you know, are, and bring those back 00:49:32.360 --> 00:49:33.360 to you. 00:49:33.360 --> 00:49:34.360 So cash and checks would be exempt. 00:49:34.360 --> 00:49:35.360 Yes. 00:49:35.360 --> 00:49:36.360 That's the word I wanted. 00:49:36.360 --> 00:49:37.360 Yes, yes. 00:49:37.360 --> 00:49:38.360 So it would be out there. 00:49:38.360 --> 00:49:39.360 All right. 00:49:39.360 --> 00:49:40.360 Thank you. 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 00:49:44.240 --> 00:49:46.080 fee will not be charged. 00:49:46.080 --> 00:49:47.120 That's correct. 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 00:49:53.240 --> 00:49:55.120 fee on those recurring payments. 00:49:55.120 --> 00:49:57.400 And that's because of the law around? 00:49:57.400 --> 00:49:58.400 That's correct. 00:49:58.400 --> 00:49:59.400 Okay. 00:49:59.400 --> 00:50:00.400 Yes. 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. 00:50:06.320 --> 00:50:11.920 There's different types of fees in the merchant service world. 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 00:50:19.120 --> 00:50:23.600 know, focused on was just the convenience fee for those credit cards that were being 00:50:23.600 --> 00:50:24.600 processed online. 00:50:24.600 --> 00:50:25.600 Okay. 00:50:25.600 --> 00:50:26.600 Thank you. 00:50:26.600 --> 00:50:27.600 All right. 00:50:27.600 --> 00:50:28.600 Just wanted to comment. 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 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 00:50:37.820 --> 00:50:41.040 I was paying the city was going to a credit card processor. 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 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 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 00:51:01.920 --> 00:51:04.480 on, you know, in cost. 00:51:04.480 --> 00:51:05.480 Yeah. 00:51:05.480 --> 00:51:08.560 There are ways to do it, in other words. 00:51:08.560 --> 00:51:09.560 Yeah. 00:51:09.560 --> 00:51:10.560 Okay. 00:51:10.560 --> 00:51:11.560 Thank you. 00:51:11.560 --> 00:51:12.560 All right. 00:51:12.560 --> 00:51:13.560 I guess that's all. 00:51:13.560 --> 00:51:14.560 All right. 00:51:14.560 --> 00:51:18.560 Now I will entertain a motion to approve that item. 00:51:18.560 --> 00:51:24.800 We have a motion and a second, what a different combination. 00:51:24.800 --> 00:51:25.800 All right. 00:51:25.800 --> 00:51:26.800 Thank you. 00:51:26.800 --> 00:51:27.800 All those in favor, please say aye. 00:51:27.800 --> 00:51:28.800 Aye. 00:51:28.800 --> 00:51:29.800 It's unanimous. 00:51:29.800 --> 00:51:30.800 Thank you. 00:51:30.800 --> 00:51:35.720 Moving on to item H. 00:51:35.720 --> 00:51:42.960 Yeah, sorry, that is the end of the presentations. 00:51:42.960 --> 00:51:49.880 The remaining, I believe, four items relate to rates just as a separate item, but those 00:51:49.880 --> 00:51:51.720 were incorporated into the presentation. 00:51:51.720 --> 00:51:54.480 So if you have any questions, again, on those, yeah. 00:51:54.480 --> 00:51:55.480 Yep. 00:51:55.480 --> 00:51:56.480 Thank you. 00:51:56.480 --> 00:51:58.200 We covered it all in the previous presentations. 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. 00:52:02.440 --> 00:52:03.440 Yeah. 00:52:03.440 --> 00:52:04.440 That would probably be good. 00:52:04.440 --> 00:52:05.440 All right. 00:52:05.440 --> 00:52:06.440 All right. 00:52:06.440 --> 00:52:10.640 So I'll entertain a motion for item H, water fund. 00:52:10.640 --> 00:52:11.640 Move approval. 00:52:11.640 --> 00:52:12.640 I have a motion. 00:52:12.640 --> 00:52:13.640 Second. 00:52:13.640 --> 00:52:14.640 Second. 00:52:14.640 --> 00:52:15.640 All those in favor, please say aye. 00:52:15.640 --> 00:52:16.640 Aye. 00:52:16.640 --> 00:52:17.640 Passes unanimously. 00:52:17.640 --> 00:52:22.560 Now entertain a motion for, to approve item I. 00:52:22.560 --> 00:52:23.560 So move. 00:52:23.560 --> 00:52:24.560 We have a motion. 00:52:24.560 --> 00:52:25.560 Second. 00:52:25.560 --> 00:52:26.560 All those in favor, please say aye. 00:52:26.560 --> 00:52:27.560 Aye. 00:52:27.560 --> 00:52:28.560 Passes unanimously. 00:52:28.560 --> 00:52:34.680 Is there a motion for item J to approve? 00:52:34.680 --> 00:52:37.080 So moved. 00:52:37.080 --> 00:52:38.080 Motion and a second. 00:52:38.080 --> 00:52:39.080 All those in favor, please say aye. 00:52:39.080 --> 00:52:40.080 Aye. 00:52:40.080 --> 00:52:41.080 Aye. 00:52:41.080 --> 00:52:42.080 Passes unanimously. 00:52:42.080 --> 00:52:44.400 Is there a motion to approve item K? 00:52:44.400 --> 00:52:45.400 So moved. 00:52:45.400 --> 00:52:46.400 Motion. 00:52:46.400 --> 00:52:47.400 Second. 00:52:47.400 --> 00:52:48.400 Second. 00:52:48.400 --> 00:52:49.720 All those in favor, please say aye. 00:52:49.720 --> 00:52:50.720 Aye. 00:52:50.720 --> 00:52:51.720 Passes unanimously. 00:52:51.720 --> 00:52:53.480 Is there a motion to approve item? 00:52:53.480 --> 00:52:54.480 Well, here we go. 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. 00:52:59.000 --> 00:53:00.000 Tony. 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 00:53:05.200 --> 00:53:08.020 items for new business action. 00:53:08.020 --> 00:53:14.420 Your calendar, at least for future items, does seem pretty vacant here, but there is 00:53:14.420 --> 00:53:17.120 one item that we're working on that I want to give you a heads up. 00:53:17.120 --> 00:53:22.160 This is with customer service on our credit collection process and leak adjustment. 00:53:22.160 --> 00:53:23.160 That'll be coming to you. 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. 00:53:29.160 --> 00:53:30.360 And we're working through that now. 00:53:30.360 --> 00:53:33.820 I hope to bring that to you sometime in September. 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 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 00:53:42.960 --> 00:53:45.400 kind of work with your schedules, we're happy to do that. 00:53:45.400 --> 00:53:49.000 So with that, if there's anything else that you need, happy to go through that. 00:53:49.000 --> 00:53:51.200 I was going to say new business items. 00:53:51.200 --> 00:53:52.680 Mr. Rayner, do you have anything? 00:53:52.680 --> 00:53:53.680 I knew it was coming. 00:53:53.680 --> 00:54:01.400 I was just curious in the paper, is it Love Valley with the sewer? 00:54:01.400 --> 00:54:02.400 Whatever the swamp. 00:54:02.400 --> 00:54:07.240 The package plant, how will that affect us in any way? 00:54:07.240 --> 00:54:10.240 Because it keeps coming in, the city council is involved with it, somebody. 00:54:10.240 --> 00:54:13.720 Mr. Kay, could you give us an insight, please? 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 00:54:17.160 --> 00:54:18.160 is possible. 00:54:18.160 --> 00:54:19.160 Oh, if it's permissible. 00:54:19.160 --> 00:54:20.720 Yeah, because it's not on the agenda. 00:54:20.720 --> 00:54:27.920 Really quickly, the city has filed its, well, the plant itself will affect the watershed, 00:54:27.920 --> 00:54:32.240 and so we are evaluating our options to protest. 00:54:32.240 --> 00:54:34.160 That's really high level. 00:54:34.160 --> 00:54:35.160 Thank you for the report. 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. 00:54:39.200 --> 00:54:41.680 Well, maybe concerned, but nothing we're going to be able to do about it. 00:54:41.680 --> 00:54:42.680 We're tracking it. 00:54:42.680 --> 00:54:43.680 Tracking. 00:54:43.680 --> 00:54:44.680 Tracking. 00:54:44.680 --> 00:54:45.680 Bring something that's pertinent. 00:54:45.680 --> 00:54:46.680 Yes, sir. 00:54:46.680 --> 00:54:47.680 Okay, great. 00:54:47.680 --> 00:54:51.240 Read it, if you want to stay. 00:54:51.240 --> 00:54:55.080 Alright, anything else, if not, we stand adjourned.