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 - Okay, it is nine o'clock and we do have a quorum.

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 So we'll call to order the February 10th,

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 2020 City of Debt and Public Utilities Board.

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 The first item is receive a report,

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 hold a discussion, and give staff direction

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 regarding credit and collections, performance, and processes.

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 - Madam Chair, board members,

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 Christa Foster, Utility Customer Service,

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 and I'm here this morning just to give some updates

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 on some of our different credit and collections processes.

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 Most importantly, to give an update on the release

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 in year today on outstanding bad debt.

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 As everyone may remember, the new board members

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 are certainly going to get the quick refresher

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 that in February of 2018, we made some changes

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 to our credit and collections practices.

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 We added some additional funds

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 to our plus one utility assistant program.

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 We introduced a couple of new deposit waiver options

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 for customers.

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 Our internal credit score and rating system was modified,

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 which was the largest of these changes.

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 First, interest no longer counted as a credit event.

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 Credit scoring allowed for additional occurrences

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 before it impacted a customer negatively.

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 And we changed our process from requiring

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 a two month deposit on all at-risk accounts

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 to one of our credit tiers

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 requires a one month security deposit.

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 When Navigate Consulting was here in March of 2019,

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 they were reviewing our credit and collections processes

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 and did express some concerns

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 about the growing rate of the bad debt

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 that we had seen since those changes had been put into place.

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 And we made several updates through last spring and summer,

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 with the last being August of 2019,

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 when we provided the bad debt performance update

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 to the public utilities board and the council.

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 Since that time, when we came in August,

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 it was trending in such a way

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 that the FY18-19 bad debt growth was 44% higher

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 than the previous year, which is very alarming.

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 We were tasked to please come back

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 with possible containment strategies

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 if it was continuing to trend that way,

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 but to be sure to monitor that growth.

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 At this time, with the full third quarter included,

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 the growth has slowed somewhat

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 and we are at a total 26% increase

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 over the previous year's bad debt,

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 and that is just over $330,000 for that time period.

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 It's stabilizing somewhat,

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 but it is not fully stable on our debt growth.

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 This is still an area of concern.

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 We are not bringing containment strategies today,

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 but we are still very closely monitoring the situation

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 and requesting that no additional changes be made

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 to our current processes.

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 So the other thing that's important to note

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 is that the very early data that we're beginning to see,

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 we're starting to see that the decrease in bad debt growth

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 as well as late fee assessments is going down,

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 but that trend seems to follow the patterns

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 that we're seeing with the growth

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 in the Pay As You Go program.

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 So we would like to continue focusing our efforts

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 on the Pay As You Go currently

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 as our cost containment strategy.

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 The second reason that I'm here this morning

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 is our Red Flags Rule.

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 We will be bringing to council a Red Flags Rule ordinance

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 to formalize our policy.

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 As a quick summary, Red Flags Rule was enacted in 2008

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 and all creditors were required to be in compliance by 2009.

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 And all this is, the Red Flags Rule is here

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 to formalize the requirement and the obligation

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 that creditors have toward their customers

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 to protect them from identity theft.

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 So we have been following Red Flags practices,

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 but during a review of our program

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 and some of the things internally in our internal directives,

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 we realized that there was never a formalized

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 ordinance or policy brought to council.

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 And so that's what we are doing now.

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 We wanted to go ahead and just do that

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 and get everything put together at once.

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 When the Red Flags Rule first came out in 2008,

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 Texas Municipal League put together a draft policy

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 and program where they help with identifying the Red Flags

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 as they apply to utilities in the municipal areas.

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 We are using that model to create our program

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 and we'll be bringing that back to you.

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 So the next steps that we have is for you guys

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 to review that as it comes back out of legal.

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 We are going to recommend that it be adopted

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 as it stands, that we will continue to monitor

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 our uncollectible debt trend

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 and we will be providing information back

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 at the end of April, whether that be in a staff report,

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 if there's nothing significant to report,

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 but we may again be coming back

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 with cost containment strategies

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 if that changes significantly.

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 That we're gonna continue with our current processes

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 and focus on the growth of our PHUO prepaid utilities.

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 - And with that, are there any questions?

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 - Yes, can we get a copy of the Red Flags provisions?

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 - You will be getting a copy.

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 I had hoped to attach them before this

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 so we could have that kind of discussion.

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 It was still illegal, so we hadn't quite gotten there,

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 but it will be coming in a couple of weeks.

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 But yes, we will make sure that you have a copy of that.

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 - And back on the page with the graphs,

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 I noticed one of the covers, three quarters,

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 and one of them covers years.

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 The dollar amount that's on that,

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 is that the actual write-off

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 or the balance of uncollectible debt?

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 - That is the actual write-off.

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 So as you see, the $448,000,

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 that was the entire amount of written off bad debt

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 for the entire FY17-18 fiscal year,

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 where the 18-19 fiscal year to date

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 is $330,000 for the first three quarters.

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 - But the 18, we're talking about a three quarter period

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 versus a four quarter period?

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 - Correct.

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 - So.

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 - You will see.

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 You will see it in the graph.

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 - So $440,000 is the number,

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 $330,000 times four over three would be $440,000.

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 - Well, the third quarter is actually the lowest,

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 as you can see in each of those graphs.

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 That is the lowest amount of bad debt

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 that we generally produce each year.

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 - So it'll be more than $440,000.

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 - Typically, well last year,

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 the amount of debt in the fourth quarter was $180,000.

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 And as of yet, we have not seen a quarter

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 that has not had some level of growth overall.

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 So it is likely that it will come in above that.

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 - And the three quarters that you're showing

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 on the 2018-19, is that through June 30th?

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 - It would be through the June 30th, yes.

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 - Okay, and what's the number

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 from June 30th through September 30th?

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 - We don't have a number yet.

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 The way bad debt works is it's written off

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 six months after the account closes.

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 So what happens is we won't see those numbers

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 for a delayed period,

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 which is why we're not into the current fiscal year.

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 It has to have been bad debt abandoned for some time.

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 It will be the first of April,

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 but for last year, we'll be completely closed out.

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 - So how does this impact the city budget?

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 Does the city budget have a number in there?

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 - Where's finance? - Okay.

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 - David Haynes, director of finance.

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 As we budget each year,

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 we take into account in our revenue projections, bad debt.

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 So ultimately, when you look at any utility funds,

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 it's represented in the revenue forecast that we have,

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 and ultimately, the cost of services associated with that

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 on the expense side.

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 - So how much do you budget for

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 in a year's time for bad debt release utility?

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 - We can look at that, and I don't know off the top of my head.

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 I think a figure for you is just part

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 of our revenue projections,

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 but we can come back and estimate that.

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 And it's gonna be in line with what's here

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 distributed amongst the utilities,

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 but we don't necessarily have a line item for bad debt.

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 - And this is just water and wastewater, is that true?

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 - It includes electric as well.

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 - Includes.

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 - What was the impact?

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 Most utilities do the two months deposit,

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 because by the time we know that it's going bad,

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 more than a month has passed.

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 So is that the main reason why we're seeing the increase,

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 and is it both residential and commercial?

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 - It is primarily residential,

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 and it is because we have

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 far fewer residential deposits on file.

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 We saw about an $800,000 decrease

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 in the amount of funds that were attributed

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 to residential departments.

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 - And was that internal direction

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 or direction from city council, or?

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 - This was city council direction.

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 - I was just curious if you had any demographics

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 regarding the debt, particular sectors, students, residents?

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 - Actually, we did provide some demographics

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 in terms of, we took an overlay

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 of the different income areas based on census data,

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 and overlaid that with the uncollectible debt,

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 and found that there was not a specific trend

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 one way or the other.

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 - Any other questions?

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 Did you get what you need from us?

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 - Absolutely.

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 - Okay, thank you.

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 - Thank you very much.

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 - You did have another question, did you?

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 - No. - Okay.

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 - The next item is receive a presentation,

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 and hold and discuss a discussion

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 regarding the water and wastewater cost of service study.

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 - Good morning, PUB Chair,

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 Nick Benson, Assistant Director of Finance.

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 I have a brief presentation for you this morning

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 to review the cost of service and rate design study

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 that we're currently in the process of updating

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 for water and wastewater.

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 If you have any questions, feel free to ask me.

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 I can address there's plenty of staff

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 that you have appeared to address, so.

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 A quick overview of the presentation,

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 so we will walk you through the cost of service

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 and rate design process and what that looks like.

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 We will also identify the process

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 of identifying our revenue requirements.

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 So how much revenue do we need from each customer class

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 from water and wastewater to cover our cost

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 of providing service.

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 We'll also review the pricing objectives

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 that are currently identified in this study,

232
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 the existing one and the new one

233
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 that we're currently in the process of updating,

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 and also review the next steps with you.

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 So the cost of service and rate design process

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 in the fall of 2019, the city contacted with TELUS

237
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 to update the city's cost of service

238
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 and rate design study,

239
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 and this study is updated every five years.

240
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 The current study that is in place

241
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 in the financial model that we're using

242
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 must be in place in 2015.

243
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 The current study period will take us from 2020 to 2025,

244
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 and the cost of service and rate design study

245
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 is basically meant to identify the revenue requirements

246
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 of the water and wastewater utilities

247
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 where we know what rate to charge to recover our cost.

248
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 We are also using principles identified

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 by the American Water Works Association,

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 also referred to as AWWA.

251
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 This organization is used by several utilities

252
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 on the water and wastewater side

253
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 when benchmarking their rates

254
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 with similar municipalities around the area.

255
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 So the cost of service process,

256
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 this table writes it down to five simple steps.

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 You can see step number one being at the bottom,

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 step number five being at the top.

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 So we are currently working on step number one through three.

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 Here pretty soon,

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 we will be working on the design and the rate structure.

262
00:12:02,080 --> 00:12:03,720
 That's why we're here talking to you today

263
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 about how the rates are structured

264
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 and what our pricing objectives are.

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 Step number five, we do anticipate finishing the study

266
00:12:10,800 --> 00:12:13,280
 and bringing it back to the PUV and city council

267
00:12:13,280 --> 00:12:15,520
 this upcoming summer, so summer of 2020.

268
00:12:15,520 --> 00:12:22,240
 Now this diagram outlines the different elements

269
00:12:22,240 --> 00:12:24,560
 that go into identifying the revenue requirements

270
00:12:24,560 --> 00:12:26,920
 for the different customer classes.

271
00:12:26,920 --> 00:12:28,360
 So starting on the left-hand side here,

272
00:12:28,360 --> 00:12:30,200
 you can see the O&M budgets.

273
00:12:30,200 --> 00:12:31,520
 So over the last couple of months,

274
00:12:31,520 --> 00:12:33,240
 we have been setting our operating budgets

275
00:12:33,240 --> 00:12:35,120
 that are approved by the PUV and city council

276
00:12:35,120 --> 00:12:37,980
 to tell us to update the financial model.

277
00:12:37,980 --> 00:12:40,880
 We have also sent them our capital budgets

278
00:12:40,880 --> 00:12:41,980
 for a five-year period.

279
00:12:41,980 --> 00:12:43,520
 We do budget every capital budget,

280
00:12:43,520 --> 00:12:46,320
 water and waste water in a five-year period.

281
00:12:46,320 --> 00:12:48,840
 Transfers to reserves, we do have that built in here also

282
00:12:48,840 --> 00:12:51,000
 when identifying our revenue requirements.

283
00:12:51,000 --> 00:12:53,400
 And then we did consider key factors such as inflation,

284
00:12:53,400 --> 00:12:55,280
 interest rates, and finance in these projects.

285
00:12:55,280 --> 00:12:57,800
 So as we get further out of that five-year period,

286
00:12:57,800 --> 00:12:59,840
 the project cost typically increases.

287
00:12:59,840 --> 00:13:02,660
 So we are building that into the financial model.

288
00:13:02,660 --> 00:13:04,920
 Financial policies, we also are considering

289
00:13:04,920 --> 00:13:07,460
 our debt coverage ratio and our financial reserves

290
00:13:07,460 --> 00:13:09,320
 in water and waste water when looking at our rates

291
00:13:09,320 --> 00:13:10,560
 that we're setting.

292
00:13:10,560 --> 00:13:12,520
 Now I think the one important thing to point out too

293
00:13:12,520 --> 00:13:14,320
 is that both water and waste water have revenue

294
00:13:14,320 --> 00:13:16,060
 that are non-rate related.

295
00:13:16,060 --> 00:13:18,240
 We are backing those revenues out of the utilities

296
00:13:18,240 --> 00:13:21,000
 not to skew the numbers one way or the other.

297
00:13:21,000 --> 00:13:27,040
 So the current pricing structure and pricing objectives

298
00:13:27,040 --> 00:13:28,600
 and the main reason we want to talk to you today,

299
00:13:28,600 --> 00:13:31,040
 so the current pricing model that we have in place

300
00:13:31,040 --> 00:13:33,360
 has two main pricing objectives.

301
00:13:33,360 --> 00:13:35,280
 The first will be in a tiered pricing structure

302
00:13:35,280 --> 00:13:37,520
 to incentivize water conservation

303
00:13:37,520 --> 00:13:39,000
 and the second one being establishment

304
00:13:39,000 --> 00:13:40,800
 of cost of service based rates.

305
00:13:40,800 --> 00:13:42,520
 So this working model that we are currently

306
00:13:42,520 --> 00:13:45,040
 in the process of updating, we do use it every year

307
00:13:45,040 --> 00:13:47,280
 to input our operating budgets into

308
00:13:47,280 --> 00:13:48,800
 and then come up with a cost of service rate

309
00:13:48,800 --> 00:13:50,720
 that we can use for wholesale customers

310
00:13:50,720 --> 00:13:53,360
 and residential customers and so forth.

311
00:13:53,360 --> 00:13:55,320
 I kind of want to give everybody a couple examples

312
00:13:55,320 --> 00:13:56,600
 of the residential rate structure

313
00:13:56,600 --> 00:13:59,200
 and how the water conservation comes into play

314
00:13:59,200 --> 00:14:01,040
 when we set our residential rates.

315
00:14:01,040 --> 00:14:03,720
 So you can see wastewater customers are here at the top.

316
00:14:03,720 --> 00:14:05,880
 There are two components to a wastewater bill

317
00:14:05,880 --> 00:14:07,240
 that are billed each month.

318
00:14:07,240 --> 00:14:08,720
 The first one being a facility charge

319
00:14:08,720 --> 00:14:11,560
 which is a fixed fee of $11 a month.

320
00:14:11,560 --> 00:14:13,160
 You can see that here.

321
00:14:13,160 --> 00:14:14,640
 And the second one being a volume charge

322
00:14:14,640 --> 00:14:16,920
 of three per thousand gallons.

323
00:14:16,920 --> 00:14:20,080
 I want to point out that wastewater is a non-metered service.

324
00:14:20,080 --> 00:14:21,640
 So what we do to get the volume

325
00:14:21,640 --> 00:14:23,520
 and the billable volume for wastewater customers

326
00:14:23,520 --> 00:14:25,880
 is based off their water usage.

327
00:14:25,880 --> 00:14:29,160
 We actually call that an average daily usage

328
00:14:29,160 --> 00:14:30,520
 and that's established during the months

329
00:14:30,520 --> 00:14:33,360
 of December, January, and February.

330
00:14:33,360 --> 00:14:35,800
 If a household does not have that established usage

331
00:14:35,800 --> 00:14:38,560
 so someone wants to move in a house in June,

332
00:14:38,560 --> 00:14:40,800
 we would use a minimum of 5,400 gallons

333
00:14:40,800 --> 00:14:42,920
 until that average is established.

334
00:14:42,920 --> 00:14:44,360
 The average of 5,400 gallons,

335
00:14:44,360 --> 00:14:45,560
 if you remember in the budgeting process,

336
00:14:45,560 --> 00:14:48,560
 we actually decreased it from 6,000 to 5,400

337
00:14:48,560 --> 00:14:49,720
 about a year and a half ago.

338
00:14:49,720 --> 00:14:53,160
 So that's what the PDB and city council decided to do.

339
00:14:53,160 --> 00:14:54,840
 Oh, water is similar to wastewater.

340
00:14:54,840 --> 00:14:57,680
 We do have a facility charge that you can see here of $16.

341
00:14:57,680 --> 00:14:59,000
 So a little bit more.

342
00:14:59,000 --> 00:15:00,680
 This is for a three quarter inch meter.

343
00:15:00,680 --> 00:15:02,440
 This is the most typical size meter

344
00:15:02,440 --> 00:15:04,920
 for residential customers in the city.

345
00:15:04,920 --> 00:15:06,520
 And the volume charge is a little bit different

346
00:15:06,520 --> 00:15:07,960
 for water customers.

347
00:15:07,960 --> 00:15:10,520
 We do break it into two different times of the year

348
00:15:10,520 --> 00:15:12,480
 so you can see a winter rate and a summer rate.

349
00:15:12,480 --> 00:15:16,320
 So as people start irrigating their yards more in the summer

350
00:15:16,320 --> 00:15:17,720
 and the rate does increase a little bit

351
00:15:17,720 --> 00:15:19,800
 as your water usage increases.

352
00:15:19,800 --> 00:15:22,600
 So you can see a customer using zero to 15,000 gallons

353
00:15:22,600 --> 00:15:26,040
 is being charged 415 per 1,000 gallon.

354
00:15:26,040 --> 00:15:30,400
 Over 50,000 gallons, you can see is 1090 per 1,000 gallons.

355
00:15:30,400 --> 00:15:31,760
 Also kind of want to show everybody

356
00:15:31,760 --> 00:15:35,320
 where the majority of our customers are in these tiers.

357
00:15:35,320 --> 00:15:37,320
 You can see the zero to 15,000 gallons

358
00:15:37,320 --> 00:15:39,520
 is the majority of the customers.

359
00:15:39,520 --> 00:15:41,520
 This is 2.7 billion gallons.

360
00:15:41,520 --> 00:15:44,200
 I know this says 2.7 million, but it's in thousands.

361
00:15:44,200 --> 00:15:46,640
 So 2.7 billion gallons of water

362
00:15:46,640 --> 00:15:49,240
 in that first tier of zero to 15,000 gallons.

363
00:15:49,240 --> 00:15:52,680
 It accounts for about 17.4 million in revenue.

364
00:15:52,680 --> 00:15:59,480
 So the next step, so we are here talking to you today

365
00:15:59,480 --> 00:16:01,160
 about where we are in the cost of service model.

366
00:16:01,160 --> 00:16:03,280
 So like I said, we have been working with Retellis

367
00:16:03,280 --> 00:16:06,960
 since the fall of 2019 to update this model.

368
00:16:06,960 --> 00:16:09,120
 They will be providing us a financial model

369
00:16:09,120 --> 00:16:11,320
 we can work with throughout the budgeting year

370
00:16:11,320 --> 00:16:13,400
 as we come back to you with those budgets each year

371
00:16:13,400 --> 00:16:15,280
 from the five year period.

372
00:16:15,280 --> 00:16:18,120
 We do anticipate this to be done around the summer.

373
00:16:18,120 --> 00:16:20,640
 So June, 2020 coming back to the Public Utility Board

374
00:16:20,640 --> 00:16:24,080
 and City Council with that final product for your review

375
00:16:24,080 --> 00:16:25,520
 and then final adoption of the rights

376
00:16:25,520 --> 00:16:27,720
 will be in September along with the budget.

377
00:16:27,720 --> 00:16:32,640
 And with that, that concludes the presentation.

378
00:16:32,640 --> 00:16:33,480
 - Questions?

379
00:16:33,480 --> 00:16:39,480
 - I was just curious as to what you folks

380
00:16:39,480 --> 00:16:42,800
 tell people to do to conserve water.

381
00:16:42,800 --> 00:16:47,800
 Are there publicized policies and suggestions?

382
00:16:47,800 --> 00:16:50,680
 Anything tied in with the sustainability program,

383
00:16:50,680 --> 00:16:52,240
 anything like that?

384
00:16:52,240 --> 00:16:53,800
 - Let me ask Dr. Banks to look here

385
00:16:53,800 --> 00:16:55,680
 and address that question really quick.

386
00:16:55,680 --> 00:17:03,960
 - Good morning board members.

387
00:17:03,960 --> 00:17:06,520
 Ken Banks, General Manager of Utilities.

388
00:17:06,520 --> 00:17:10,160
 To address your question, the sustainability group

389
00:17:10,160 --> 00:17:11,680
 has an energy audit program

390
00:17:11,680 --> 00:17:14,280
 that also includes a water audit.

391
00:17:14,280 --> 00:17:16,240
 And so typically when we go out,

392
00:17:16,240 --> 00:17:18,600
 we'll perform both of those services

393
00:17:18,600 --> 00:17:20,640
 for a requesting individual.

394
00:17:20,640 --> 00:17:23,600
 And those, the water audit in particular

395
00:17:23,600 --> 00:17:27,280
 will be focused on irrigation, indoor plumbing,

396
00:17:27,280 --> 00:17:30,600
 all types of things to help people understand

397
00:17:30,600 --> 00:17:31,880
 how they can conserve water

398
00:17:31,880 --> 00:17:33,560
 to manage their systems better.

399
00:17:33,560 --> 00:17:39,520
 We also have several types of messaging

400
00:17:39,520 --> 00:17:41,800
 with regards to water conservation.

401
00:17:41,800 --> 00:17:44,880
 We have a drought contingency plan as well

402
00:17:44,880 --> 00:17:46,520
 that will enact certain policies

403
00:17:46,520 --> 00:17:48,840
 if we end up getting into a situation

404
00:17:48,840 --> 00:17:51,960
 where we have concerns about water usage.

405
00:17:51,960 --> 00:17:53,880
 Typically we don't get there,

406
00:17:53,880 --> 00:17:56,880
 but we certainly have those policies in place.

407
00:17:56,880 --> 00:17:59,320
 So those are a few examples.

408
00:17:59,320 --> 00:18:02,000
 We put on workshops on water conservation

409
00:18:02,000 --> 00:18:05,080
 through the sustainability group and sustainable schools.

410
00:18:05,080 --> 00:18:07,360
 So there's a lot of different elements.

411
00:18:07,360 --> 00:18:11,120
 And just to point out too, as Nick went over,

412
00:18:11,120 --> 00:18:13,840
 our entire pricing structure on the water side

413
00:18:13,840 --> 00:18:16,400
 is geared towards conservation.

414
00:18:16,400 --> 00:18:20,000
 So the more water you use within those tiers,

415
00:18:20,000 --> 00:18:23,640
 the more amount you're going to pay on a per-gallon basis.

416
00:18:23,640 --> 00:18:24,720
 - Thank you. - Sure.

417
00:18:24,720 --> 00:18:29,480
 - Where did the direction come from

418
00:18:29,480 --> 00:18:34,360
 to have this tiered pricing in terms of,

419
00:18:34,360 --> 00:18:38,760
 it seems to me that the low end is extremely cheap

420
00:18:38,760 --> 00:18:43,080
 if you could get less than 15,000 gallons of water,

421
00:18:43,080 --> 00:18:47,240
 you've got a way of a deal at the other extreme

422
00:18:47,240 --> 00:18:52,160
 over a penny a gallon seems pretty high.

423
00:18:52,160 --> 00:18:54,880
 I also do business in the desert

424
00:18:54,880 --> 00:18:58,680
 and our rates aren't quite to that level yet

425
00:18:58,680 --> 00:19:03,360
 where water is truly scarce, right?

426
00:19:03,360 --> 00:19:05,040
 Who gives you direction in terms of,

427
00:19:05,040 --> 00:19:08,000
 'cause obviously it's a judgment call at that point

428
00:19:08,000 --> 00:19:10,400
 to see how punitive you get at the high end

429
00:19:10,400 --> 00:19:13,160
 and how subsidizing you get the low end.

430
00:19:13,160 --> 00:19:15,400
 - And that's a conversation we'll have with the consultant

431
00:19:15,400 --> 00:19:17,720
 when he comes back in the summer of 2020.

432
00:19:17,720 --> 00:19:18,960
 So who gives us direction?

433
00:19:18,960 --> 00:19:21,200
 It'll be the Public Utility Board and the City Council.

434
00:19:21,200 --> 00:19:23,200
 So we work with the consultant to update

435
00:19:23,200 --> 00:19:24,800
 that financial model, we bring it forward

436
00:19:24,800 --> 00:19:26,360
 to the Public Utility Board and City Council

437
00:19:26,360 --> 00:19:27,600
 with further direction.

438
00:19:27,600 --> 00:19:29,240
 But these two pricing objectives

439
00:19:29,240 --> 00:19:31,240
 are what that model is based off of.

440
00:19:31,240 --> 00:19:33,040
 So I think the answer to your question would be,

441
00:19:33,040 --> 00:19:34,760
 we get that direction from the Public Utility Board

442
00:19:34,760 --> 00:19:38,440
 and City Council during the budgeting process annually

443
00:19:38,440 --> 00:19:40,080
 and during the rate setting process annually.

444
00:19:40,080 --> 00:19:42,400
 So as we kick off that season,

445
00:19:42,400 --> 00:19:44,720
 May, June time period comes along

446
00:19:44,720 --> 00:19:46,800
 and those are conversations we'll have with you.

447
00:19:46,800 --> 00:19:48,640
 And we'll definitely talk about that.

448
00:19:48,640 --> 00:19:53,520
 - Any other questions?

449
00:19:53,520 --> 00:19:56,680
 All right, thank you. - Thank you.

450
00:19:56,680 --> 00:19:59,200
 - And then the next item is receive a report

451
00:19:59,200 --> 00:20:01,200
 and hold a discussion regarding the following

452
00:20:01,200 --> 00:20:04,360
 with respect to green tree estates.

453
00:20:04,360 --> 00:20:07,040
 And there's five alternatives I'm not gonna read them all.

454
00:20:10,880 --> 00:20:13,560
 (clears throat)

455
00:20:13,560 --> 00:20:21,080
 - And it is quite a caption sub.

456
00:20:21,080 --> 00:20:22,320
 Members of the board, Ryan Adams,

457
00:20:22,320 --> 00:20:24,440
 Deputy Director of Public Affairs.

458
00:20:24,440 --> 00:20:26,800
 And this presentation is really to give the board

459
00:20:26,800 --> 00:20:30,600
 an update on the status of the water provision

460
00:20:30,600 --> 00:20:33,600
 at green tree estates and to walk through

461
00:20:33,600 --> 00:20:35,800
 some of the recent events and the direction

462
00:20:35,800 --> 00:20:37,480
 the council provided at the most recent meeting

463
00:20:37,480 --> 00:20:40,240
 on February 4th, and then also to answer any questions

464
00:20:40,240 --> 00:20:41,600
 that the board might have.

465
00:20:41,600 --> 00:20:46,800
 So this was back on February 4th.

466
00:20:46,800 --> 00:20:48,920
 The staff provided council update

467
00:20:48,920 --> 00:20:50,480
 on the status of green tree estates.

468
00:20:50,480 --> 00:20:53,640
 And as a very brief overview,

469
00:20:53,640 --> 00:20:56,000
 the residents of green tree estates

470
00:20:56,000 --> 00:21:00,400
 were served by a private water supplier from a well.

471
00:21:00,400 --> 00:21:03,040
 That water supplier ceased that water supply.

472
00:21:03,040 --> 00:21:04,560
 They were left without water.

473
00:21:04,560 --> 00:21:05,560
 Over the course of the fall,

474
00:21:05,560 --> 00:21:08,000
 the city met with the numerous times

475
00:21:08,000 --> 00:21:12,680
 and made a determination in November to declare a disaster

476
00:21:12,680 --> 00:21:16,320
 so that the city could provide water on a temporary basis,

477
00:21:16,320 --> 00:21:18,720
 three times per week, non-potable water,

478
00:21:18,720 --> 00:21:20,720
 and then to make potable or drinkable water

479
00:21:20,720 --> 00:21:22,400
 available to the residents.

480
00:21:22,400 --> 00:21:26,520
 So on February 4th, staff updated the council

481
00:21:26,520 --> 00:21:31,360
 on the work session that they held on December 10th.

482
00:21:31,360 --> 00:21:33,560
 The results of that and the progress staff

483
00:21:33,560 --> 00:21:37,400
 had made since then, status update was provided.

484
00:21:37,400 --> 00:21:39,000
 We also described to council

485
00:21:39,000 --> 00:21:41,360
 what would happen beginning February 13th

486
00:21:41,360 --> 00:21:43,720
 once the original declaration of disaster

487
00:21:43,720 --> 00:21:45,640
 was set to expire.

488
00:21:45,640 --> 00:21:47,320
 We also explained the steps for residents

489
00:21:47,320 --> 00:21:48,640
 connected to the city water system

490
00:21:48,640 --> 00:21:50,600
 and just other issues for the council to consider

491
00:21:50,600 --> 00:21:52,160
 at that meeting, which they did.

492
00:21:52,160 --> 00:21:58,160
 So as a summary, on December 10th, council directed staff

493
00:21:58,160 --> 00:22:00,440
 that they would extend the declaration of disaster

494
00:22:00,440 --> 00:22:03,320
 originally slated to expire on February 12th

495
00:22:03,320 --> 00:22:04,880
 for an additional 100 days,

496
00:22:04,880 --> 00:22:07,320
 and that would bring it to May 22nd.

497
00:22:07,320 --> 00:22:09,640
 That's the last day of that declaration.

498
00:22:09,640 --> 00:22:12,320
 They also directed staff to begin billing residents

499
00:22:12,320 --> 00:22:14,840
 beginning February 13th,

500
00:22:14,840 --> 00:22:18,560
 or day one of that additional 100-day extension.

501
00:22:18,560 --> 00:22:21,880
 They asked staff to offer voluntary courtesy inspections

502
00:22:21,880 --> 00:22:23,720
 and to provide code compliance information.

503
00:22:23,720 --> 00:22:25,720
 So essentially, let residents know

504
00:22:25,720 --> 00:22:28,120
 that we're happy to come inspect your house

505
00:22:28,120 --> 00:22:29,880
 the way we would if we were going to connect

506
00:22:29,880 --> 00:22:31,240
 to the water system,

507
00:22:31,240 --> 00:22:33,520
 and to provide any other code compliance information

508
00:22:33,520 --> 00:22:34,680
 that they needed.

509
00:22:34,680 --> 00:22:37,800
 And that we would also address life, safety,

510
00:22:37,800 --> 00:22:40,120
 and health issues with non-occupied structures.

511
00:22:40,120 --> 00:22:41,640
 And if you go out to Green Tree Estates,

512
00:22:41,640 --> 00:22:44,560
 there are a number of structures on various properties.

513
00:22:44,560 --> 00:22:47,040
 They are quite obviously non-occupied.

514
00:22:47,040 --> 00:22:50,520
 They are very substandard.

515
00:22:50,520 --> 00:22:54,080
 And so staff began the process of enforcement on those

516
00:22:54,080 --> 00:22:57,800
 'cause they are clear hazards to the public,

517
00:22:57,800 --> 00:23:02,240
 and what we would term an attractive nuisance.

518
00:23:02,240 --> 00:23:07,400
 Also, at that December 10th meeting,

519
00:23:07,400 --> 00:23:09,560
 the city requested that residents and property owners

520
00:23:09,560 --> 00:23:13,160
 of Green Tree Estates assist in providing some information,

521
00:23:13,160 --> 00:23:15,480
 including the confirmation of ownership

522
00:23:15,480 --> 00:23:18,040
 of all Green Tree Estates roads and easements.

523
00:23:18,040 --> 00:23:20,800
 And I will note that they did provide

524
00:23:20,800 --> 00:23:23,320
 what they are going to consider that confirmation

525
00:23:23,320 --> 00:23:25,520
 just prior to this meeting, so there is an X there,

526
00:23:25,520 --> 00:23:29,120
 but pay no attention to that X.

527
00:23:29,120 --> 00:23:31,640
 To confirm ownership of all Green Tree Estates lots,

528
00:23:31,640 --> 00:23:34,480
 we are in the process of continuing to do that.

529
00:23:34,480 --> 00:23:36,680
 Confirm which lots are owner-occupied.

530
00:23:36,680 --> 00:23:40,560
 This is important as we will have to work with all owners

531
00:23:40,560 --> 00:23:44,000
 to actually connect them to the city water system,

532
00:23:44,000 --> 00:23:47,000
 but we cannot work with the residents if they rent.

533
00:23:47,000 --> 00:23:48,760
 Confirm which property owners are interested

534
00:23:48,760 --> 00:23:51,000
 in connecting to a water meter

535
00:23:51,000 --> 00:23:53,080
 at the Green Tree Estates boundary.

536
00:23:53,080 --> 00:23:55,720
 Schedule courtesy inspections and to begin paying for water

537
00:23:55,720 --> 00:23:57,560
 on February 13th.

538
00:23:57,560 --> 00:23:59,560
 And just as a little bit of a background,

539
00:23:59,560 --> 00:24:02,720
 the solution that staff devised to provide permanent water

540
00:24:02,720 --> 00:24:04,120
 to the residents of Green Tree Estates

541
00:24:04,120 --> 00:24:07,560
 is to place a meter at the neighborhood boundary.

542
00:24:07,560 --> 00:24:09,440
 All the property within the neighborhood is private,

543
00:24:09,440 --> 00:24:11,240
 there are no public rights away,

544
00:24:11,240 --> 00:24:14,200
 and each individual property owner will be charged

545
00:24:14,200 --> 00:24:17,120
 to run a service line from the residents

546
00:24:17,120 --> 00:24:18,880
 all the way to the meter.

547
00:24:18,880 --> 00:24:22,520
 It could be 40 feet, it could be 200 feet,

548
00:24:22,520 --> 00:24:24,920
 but it would be essentially a long service line.

549
00:24:24,920 --> 00:24:32,000
 Staff did engage the residents in two small group meetings

550
00:24:32,000 --> 00:24:33,240
 between the December 10th

551
00:24:33,240 --> 00:24:35,320
 and the February 4th council meetings.

552
00:24:35,320 --> 00:24:38,480
 One on December 19th, where we essentially discussed

553
00:24:38,480 --> 00:24:40,320
 the courtesy inspections and the results

554
00:24:40,320 --> 00:24:41,640
 from that December 10th meeting.

555
00:24:41,640 --> 00:24:43,160
 And we also met with them on February 3rd,

556
00:24:43,160 --> 00:24:45,920
 just before that February 4th council work session,

557
00:24:45,920 --> 00:24:49,040
 where we previewed what we would discuss with council,

558
00:24:49,040 --> 00:24:52,960
 also reviewed how we would prepay for water services,

559
00:24:52,960 --> 00:24:55,560
 so residents can pay ahead of time,

560
00:24:55,560 --> 00:24:58,440
 it's a set amount of water they receive, a set cost.

561
00:24:58,440 --> 00:25:01,760
 This way it does not obligate them to create an account

562
00:25:01,760 --> 00:25:03,640
 and go through a credit check.

563
00:25:03,640 --> 00:25:05,640
 And then we also answered any questions that they had,

564
00:25:05,640 --> 00:25:07,840
 and they had some related to inspections

565
00:25:07,840 --> 00:25:08,960
 and some other items.

566
00:25:08,960 --> 00:25:14,480
 So the current status, the city has expended,

567
00:25:14,480 --> 00:25:17,920
 under the declaration of disaster, just over $30,000

568
00:25:17,920 --> 00:25:20,760
 to provide water to Greenery estates.

569
00:25:20,760 --> 00:25:23,400
 This does include some one-time purchases of gallons,

570
00:25:23,400 --> 00:25:25,840
 or pardon me, 275 gallon tanks,

571
00:25:25,840 --> 00:25:28,480
 and also some improvements to the roads there,

572
00:25:28,480 --> 00:25:30,760
 so that we could bring a heavy water truck

573
00:25:30,760 --> 00:25:32,320
 to deliver that water.

574
00:25:32,320 --> 00:25:36,240
 It does not include staff time for salaried staff.

575
00:25:36,240 --> 00:25:40,000
 So we capture the hourly wages of the workers who go,

576
00:25:40,000 --> 00:25:41,480
 the employees who go and deliver that water,

577
00:25:41,480 --> 00:25:45,360
 but any other staff time by, say, department directors,

578
00:25:45,360 --> 00:25:47,680
 that's not captured in that number.

579
00:25:47,680 --> 00:25:50,880
 The disaster declaration was on the agenda on February 4th.

580
00:25:50,880 --> 00:25:52,280
 It was approved by council,

581
00:25:52,280 --> 00:25:54,680
 so it has been extended through May 22nd.

582
00:25:54,680 --> 00:25:58,480
 The residents are gonna be receiving bills

583
00:25:58,480 --> 00:25:59,320
 for water service.

584
00:25:59,320 --> 00:26:02,000
 They started receiving those last week.

585
00:26:02,000 --> 00:26:05,480
 The city, again, is addressing those non-occupied,

586
00:26:05,480 --> 00:26:07,560
 attractive nuisances.

587
00:26:07,560 --> 00:26:09,480
 We have not received, again, all the information

588
00:26:09,480 --> 00:26:12,680
 that was requested by council, although we have received some

589
00:26:12,680 --> 00:26:14,360
 and we are continuing to work with the residents

590
00:26:14,360 --> 00:26:15,480
 to get the rest.

591
00:26:15,480 --> 00:26:16,600
 - Can I ask a question?

592
00:26:16,600 --> 00:26:17,440
 - Yes, sir.

593
00:26:17,440 --> 00:26:19,480
 - What is an attractive nuisance?

594
00:26:19,480 --> 00:26:24,360
 - So I'm not sure if that is a well-defined term,

595
00:26:24,360 --> 00:26:28,080
 but it's essentially something used to denote a structure

596
00:26:28,080 --> 00:26:31,640
 that is substandard, so it is a nuisance,

597
00:26:31,640 --> 00:26:36,640
 but it is open so that humans on down to,

598
00:26:36,640 --> 00:26:42,080
 say, small animals can go in there to seek cover from,

599
00:26:42,080 --> 00:26:43,400
 say, the elements of the weather.

600
00:26:43,400 --> 00:26:48,400
 So you then have either a disease problem

601
00:26:48,400 --> 00:26:51,520
 with your small animals or a public health hazard,

602
00:26:51,520 --> 00:26:54,680
 safety hazard, if people live in these

603
00:26:54,680 --> 00:26:56,280
 substandard structures.

604
00:26:56,280 --> 00:26:58,040
 One strong windstorm, they could fall over

605
00:26:58,040 --> 00:26:59,480
 and crush who's ever inside.

606
00:26:59,480 --> 00:27:03,160
 So attractive nuisance is a kind of a catch-all term

607
00:27:03,160 --> 00:27:05,400
 because they all are different in their own ways,

608
00:27:05,400 --> 00:27:07,720
 but essentially it's a substandard structure

609
00:27:07,720 --> 00:27:09,440
 that someone can access.

610
00:27:12,000 --> 00:27:14,040
 - Why don't they just call it that, then?

611
00:27:14,040 --> 00:27:17,400
 - To be perfectly blunt with you,

612
00:27:17,400 --> 00:27:18,960
 I may have used attractive nuisance

613
00:27:18,960 --> 00:27:20,640
 to save space on the PowerPoint.

614
00:27:20,640 --> 00:27:23,480
 - Okay, thanks.

615
00:27:23,480 --> 00:27:24,320
 - You got it.

616
00:27:24,320 --> 00:27:31,920
 And at the time, the city had not received any requests

617
00:27:31,920 --> 00:27:33,960
 for voluntary inspections.

618
00:27:33,960 --> 00:27:38,320
 The residents did let us know that they have reached out

619
00:27:38,320 --> 00:27:40,760
 and are working with a third-party inspector

620
00:27:40,760 --> 00:27:43,360
 to provide them guidance on what improvements

621
00:27:43,360 --> 00:27:45,240
 that they may need to make to the residences

622
00:27:45,240 --> 00:27:46,200
 to connect to city water.

623
00:27:46,200 --> 00:27:49,080
 Now, the city will not accept those,

624
00:27:49,080 --> 00:27:52,240
 but it gives them a head start,

625
00:27:52,240 --> 00:27:54,120
 and the city will come when they want to connect

626
00:27:54,120 --> 00:27:55,760
 and do our own inspection,

627
00:27:55,760 --> 00:27:57,520
 as required by state and local law.

628
00:27:57,520 --> 00:28:01,920
 So beginning February 13th,

629
00:28:01,920 --> 00:28:04,160
 residents will be billed for water.

630
00:28:04,160 --> 00:28:05,480
 Again, it's pre-billed.

631
00:28:05,480 --> 00:28:07,840
 If they do not pay by the due date,

632
00:28:07,840 --> 00:28:11,920
 they do not receive water delivered to their large tanks.

633
00:28:11,920 --> 00:28:14,200
 The residents, pardon me,

634
00:28:14,200 --> 00:28:15,760
 paying late will receive service

635
00:28:15,760 --> 00:28:18,040
 on the next scheduled delivery dates.

636
00:28:18,040 --> 00:28:21,000
 The cost per week, although they will be billed monthly,

637
00:28:21,000 --> 00:28:23,400
 the cost per week is $9.43.

638
00:28:23,400 --> 00:28:25,960
 If the household has two large containers,

639
00:28:25,960 --> 00:28:27,920
 just over $5 if they have one,

640
00:28:27,920 --> 00:28:30,320
 and these are the prevailing water rates of the city.

641
00:28:30,320 --> 00:28:32,080
 So they pay the same water rate

642
00:28:32,080 --> 00:28:34,200
 that every other Denver customer does.

643
00:28:37,680 --> 00:28:39,720
 So this is a very scaled-down,

644
00:28:39,720 --> 00:28:41,400
 simplified version of the process,

645
00:28:41,400 --> 00:28:43,040
 but for the residents, pardon me,

646
00:28:43,040 --> 00:28:44,600
 the property owners of Green Tree States

647
00:28:44,600 --> 00:28:46,560
 to connect to the water system,

648
00:28:46,560 --> 00:28:50,920
 they would have to request and pass an initial inspection

649
00:28:50,920 --> 00:28:53,320
 for us to determine if they can be connected,

650
00:28:53,320 --> 00:28:56,280
 if it poses no risk to the system,

651
00:28:56,280 --> 00:28:58,760
 a customer service inspection.

652
00:28:58,760 --> 00:29:00,040
 They would then contact the city

653
00:29:00,040 --> 00:29:01,280
 to request that water meter.

654
00:29:01,280 --> 00:29:03,880
 They would have to pay all service meter and tap fees,

655
00:29:03,880 --> 00:29:05,320
 just like any other resident

656
00:29:05,320 --> 00:29:06,920
 who makes that similar request.

657
00:29:08,000 --> 00:29:11,880
 They would have to receive a permit for the work,

658
00:29:11,880 --> 00:29:14,480
 have a plumber perform the work

659
00:29:14,480 --> 00:29:16,240
 for those areas where a plumber is required,

660
00:29:16,240 --> 00:29:17,680
 a licensed plumber.

661
00:29:17,680 --> 00:29:21,560
 It must be inspected and must pass inspection by the city.

662
00:29:21,560 --> 00:29:23,400
 And then they would set up a billing account,

663
00:29:23,400 --> 00:29:24,960
 just like any other residents,

664
00:29:24,960 --> 00:29:26,440
 so that they would be billed in arrears.

665
00:29:26,440 --> 00:29:27,840
 You use this much for a month,

666
00:29:27,840 --> 00:29:28,880
 you get your bill the next month,

667
00:29:28,880 --> 00:29:31,400
 and you pay whatever it is you used.

668
00:29:31,400 --> 00:29:37,640
 So on May 23rd, 2020, currently,

669
00:29:37,640 --> 00:29:40,400
 the declaration of disaster will expire.

670
00:29:40,400 --> 00:29:42,040
 The city's water service,

671
00:29:42,040 --> 00:29:44,480
 the temporary water service will cease,

672
00:29:44,480 --> 00:29:46,200
 and the city will lose its ability

673
00:29:46,200 --> 00:29:48,880
 to lawfully access the properties to deliver water.

674
00:29:48,880 --> 00:29:53,480
 The resident representatives of Green Tree States

675
00:29:53,480 --> 00:29:56,200
 did request to council that they would like to see

676
00:29:56,200 --> 00:29:58,360
 the declaration of disaster extended.

677
00:29:58,360 --> 00:30:02,440
 The date they gave was to May of 2021.

678
00:30:02,440 --> 00:30:05,400
 Council received that request,

679
00:30:05,400 --> 00:30:08,440
 but did not discuss it and did not act on it at that meeting.

680
00:30:08,440 --> 00:30:16,720
 We also presented several issues to consider.

681
00:30:16,720 --> 00:30:17,720
 What happens, of course,

682
00:30:17,720 --> 00:30:19,200
 is residents do not pay for water.

683
00:30:19,200 --> 00:30:20,640
 As I previously mentioned,

684
00:30:20,640 --> 00:30:23,800
 they will receive no temporary water service.

685
00:30:23,800 --> 00:30:25,960
 If they do not receive any courtesy inspections,

686
00:30:25,960 --> 00:30:28,920
 they do so, again, at their own risk,

687
00:30:28,920 --> 00:30:30,920
 because the city, when we do our initial inspection,

688
00:30:30,920 --> 00:30:33,840
 may find something that their third-party inspector

689
00:30:33,840 --> 00:30:36,320
 did not find that they would have to then comply with

690
00:30:36,320 --> 00:30:38,720
 in order to connect with the city water system.

691
00:30:38,720 --> 00:30:41,760
 What happens if they do not make code improvements

692
00:30:41,760 --> 00:30:42,600
 as required?

693
00:30:42,600 --> 00:30:45,520
 Simply, they cannot connect to city water.

694
00:30:45,520 --> 00:30:46,840
 And what happens if property owners

695
00:30:46,840 --> 00:30:48,200
 do not initiate private connections

696
00:30:48,200 --> 00:30:50,320
 to the city water system?

697
00:30:50,320 --> 00:30:53,000
 At all, we would then have to enforce our code.

698
00:30:53,000 --> 00:30:58,040
 And what that means is we would have to view them

699
00:30:58,040 --> 00:31:01,080
 as potentially being a substandard structure

700
00:31:01,080 --> 00:31:04,760
 for lack of running water to the facility.

701
00:31:04,760 --> 00:31:08,320
 And we are bringing this issue

702
00:31:08,320 --> 00:31:11,760
 and a couple others back to the council next week

703
00:31:11,760 --> 00:31:14,360
 to give them clarification on it.

704
00:31:14,360 --> 00:31:17,120
 So, the final issue to consider was,

705
00:31:17,120 --> 00:31:19,520
 what happens if less than all 14 property owners

706
00:31:19,520 --> 00:31:21,040
 initiate private connections?

707
00:31:21,040 --> 00:31:24,760
 So, we had provided some numbers on December 10th.

708
00:31:24,760 --> 00:31:26,280
 They were estimates of what the cost would be

709
00:31:26,280 --> 00:31:27,800
 to connect to the city.

710
00:31:27,800 --> 00:31:29,760
 In addition to the meter fees,

711
00:31:29,760 --> 00:31:31,680
 which are standard across the city,

712
00:31:31,680 --> 00:31:33,520
 the line that they would receive water from

713
00:31:33,520 --> 00:31:35,720
 does not extend all the way to Green Tree Estates.

714
00:31:35,720 --> 00:31:38,000
 There's a small gap there.

715
00:31:38,000 --> 00:31:40,920
 Just like any other property owner or developer,

716
00:31:40,920 --> 00:31:42,760
 they would have to, once connecting,

717
00:31:42,760 --> 00:31:45,040
 would have to cover the cost of extending that line

718
00:31:45,040 --> 00:31:47,240
 from its current location

719
00:31:47,240 --> 00:31:49,480
 to the Green Tree Estates boundary.

720
00:31:49,480 --> 00:31:54,320
 And there is a cost to that that all the new connections

721
00:31:54,320 --> 00:31:56,160
 would be required to share.

722
00:31:56,160 --> 00:31:59,280
 When we met with council last week,

723
00:31:59,280 --> 00:32:03,640
 we presented them this table,

724
00:32:03,640 --> 00:32:07,400
 which showed the cost based on the number of meters

725
00:32:07,400 --> 00:32:10,120
 that were requested from the residents.

726
00:32:10,120 --> 00:32:11,680
 At council's request,

727
00:32:11,680 --> 00:32:14,640
 staff is currently developing several options

728
00:32:14,640 --> 00:32:17,320
 to bring back to council based on pro rata agreements

729
00:32:17,320 --> 00:32:19,920
 to see if we can create a scenario

730
00:32:19,920 --> 00:32:22,880
 where a single or a group of residents

731
00:32:22,880 --> 00:32:27,000
 would not have to pay all these costs upfront,

732
00:32:27,000 --> 00:32:28,840
 particularly if other residents would come in

733
00:32:28,840 --> 00:32:31,400
 afterwards to connect to the city.

734
00:32:31,400 --> 00:32:34,920
 Council requested that come back to them on February 18th.

735
00:32:34,920 --> 00:32:40,520
 - Quick question while we're back on the table.

736
00:32:40,520 --> 00:32:45,480
 Obviously the cost of extending the line is 92.04.

737
00:32:45,480 --> 00:32:47,200
 - That's the measurement, sir.

738
00:32:47,200 --> 00:32:48,040
 - Getting back.

739
00:32:48,040 --> 00:32:53,520
 How much of the tap meter and impact fee

740
00:32:53,520 --> 00:32:55,120
 is the impact fee per se,

741
00:32:55,120 --> 00:32:57,240
 and how much of it is the cost of a tap

742
00:32:57,240 --> 00:32:58,920
 and a meter and installation?

743
00:32:58,920 --> 00:33:01,400
 - I'm gonna refer to Dr. Banks if I can.

744
00:33:01,400 --> 00:33:02,240
 - Testament's fine.

745
00:33:02,240 --> 00:33:10,720
 - I believe that the impact fee on that was around $5,900,

746
00:33:10,720 --> 00:33:13,840
 but I'd need to go back and check that.

747
00:33:13,840 --> 00:33:17,040
 - So it's about $1,000 of residents to get 'em hooked up,

748
00:33:17,040 --> 00:33:20,080
 and the rest is impact on the larger fixed cost structure.

749
00:33:20,080 --> 00:33:21,440
 - That's correct, but keep in mind,

750
00:33:21,440 --> 00:33:23,960
 you're also talking about a meter set fee,

751
00:33:23,960 --> 00:33:27,160
 the meter itself, some valve work.

752
00:33:27,160 --> 00:33:28,000
 That kind of stuff.

753
00:33:28,000 --> 00:33:31,280
 So that's all rolled into that at 69.38.

754
00:33:31,280 --> 00:33:34,000
 - Okay, so you've got 1,000 for the meter setter

755
00:33:34,000 --> 00:33:38,560
 and meter and that, and you've got 5,900 for the impacts

756
00:33:38,560 --> 00:33:41,360
 to the larger system and the fixed cost.

757
00:33:41,360 --> 00:33:42,200
 - That's correct.

758
00:33:42,200 --> 00:33:49,920
 - And this is just a map of all the residences

759
00:33:49,920 --> 00:33:52,360
 who we do provide temporary water to.

760
00:33:52,360 --> 00:33:54,480
 Most of them are in the middle

761
00:33:54,480 --> 00:33:57,320
 or towards the east side of the property.

762
00:33:57,320 --> 00:34:00,400
 If we did connect, and can everybody see my mouse right there?

763
00:34:00,400 --> 00:34:01,240
 Excellent.

764
00:34:01,240 --> 00:34:05,200
 The meters would be set on the eastern edge,

765
00:34:05,200 --> 00:34:09,120
 and then service lines would then run, preferably,

766
00:34:09,120 --> 00:34:11,920
 in the jointly owned roads

767
00:34:11,920 --> 00:34:13,920
 and make their way to each residence.

768
00:34:13,920 --> 00:34:16,720
 Although, this is an area where the city only

769
00:34:16,720 --> 00:34:22,240
 permits and inspects, so we would not make decisions

770
00:34:22,240 --> 00:34:24,480
 beyond that regarding placement,

771
00:34:24,480 --> 00:34:29,040
 other than what is required from state law or local law.

772
00:34:29,040 --> 00:34:31,680
 So we will not take an active part in the planning

773
00:34:31,680 --> 00:34:32,640
 where those lines goes.

774
00:34:32,640 --> 00:34:34,720
 We will simply permit and inspect

775
00:34:34,720 --> 00:34:36,280
 to make sure that they comply.

776
00:34:36,280 --> 00:34:40,400
 - I have a question about the history of this development.

777
00:34:40,400 --> 00:34:41,240
 - I'll do my best.

778
00:34:41,240 --> 00:34:42,320
 - Okay.

779
00:34:42,320 --> 00:34:47,240
 Green Tree Estates was, before it was an entity as such,

780
00:34:47,240 --> 00:34:49,560
 was it within the city limits?

781
00:34:51,560 --> 00:34:53,920
 - It was annexed in 2013.

782
00:34:53,920 --> 00:34:54,760
 - 2013.

783
00:34:54,760 --> 00:34:55,600
 - Exactly.

784
00:34:55,600 --> 00:34:58,320
 But it existed quite a few decades prior to that,

785
00:34:58,320 --> 00:34:59,760
 just out in the county.

786
00:34:59,760 --> 00:35:05,640
 - When it was annexed, were the lots,

787
00:35:05,640 --> 00:35:08,200
 do you know, were the lots divided up?

788
00:35:08,200 --> 00:35:09,200
 - Yes, they were.

789
00:35:09,200 --> 00:35:11,200
 They had been subdivided at that point.

790
00:35:11,200 --> 00:35:14,680
 - Okay.

791
00:35:14,680 --> 00:35:15,520
 - They had already been subdivided.

792
00:35:15,520 --> 00:35:18,000
 - They had already been subdivided at that point.

793
00:35:18,000 --> 00:35:19,640
 - And when it was annexed,

794
00:35:19,640 --> 00:35:21,720
 the city part of the water supply

795
00:35:21,720 --> 00:35:26,720
 was still not run up to the boundary of that annexed land,

796
00:35:26,720 --> 00:35:27,960
 correct?

797
00:35:27,960 --> 00:35:28,800
 - Correct.

798
00:35:28,800 --> 00:35:32,680
 So we set out a plan, the service plan for the annexation,

799
00:35:32,680 --> 00:35:35,520
 prescribed a process by which the owner

800
00:35:35,520 --> 00:35:38,200
 of the Green Tree Estates water system at the time

801
00:35:38,200 --> 00:35:39,440
 could connect to the city water

802
00:35:39,440 --> 00:35:40,760
 and then convey that water

803
00:35:40,760 --> 00:35:43,480
 to the residents of Green Tree Estates.

804
00:35:43,480 --> 00:35:47,840
 The cost of that was gonna be borne on that water supplier,

805
00:35:47,840 --> 00:35:50,280
 the person who owned the well.

806
00:35:50,280 --> 00:35:54,600
 So the process was laid out, the costs were defined.

807
00:35:54,600 --> 00:35:57,880
 However, the water supplier did not choose

808
00:35:57,880 --> 00:35:59,440
 to connect to the city water

809
00:35:59,440 --> 00:36:02,520
 and opted to continue to provide residents of water

810
00:36:02,520 --> 00:36:05,200
 from the well that he owned

811
00:36:05,200 --> 00:36:09,120
 until he decided to cease that provision in November.

812
00:36:09,120 --> 00:36:13,680
 So we gave them the pathway

813
00:36:14,920 --> 00:36:19,920
 and then waited for him to act on it.

814
00:36:19,920 --> 00:36:22,880
 - The lots that are not marked,

815
00:36:22,880 --> 00:36:25,480
 are those predominantly owned by the same person

816
00:36:25,480 --> 00:36:29,400
 that owns the water well and perhaps subdivided?

817
00:36:29,400 --> 00:36:32,520
 - For the most part, for the most part, yes.

818
00:36:32,520 --> 00:36:34,680
 - And did he or she have to be annexed

819
00:36:34,680 --> 00:36:37,720
 or did the city take an active step

820
00:36:37,720 --> 00:36:40,720
 to annex his land into the city?

821
00:36:40,720 --> 00:36:42,640
 - I'm gonna again defer to Dr. Banks on that one.

822
00:36:42,640 --> 00:36:46,440
 He is a lot more familiar with those that were in the sign.

823
00:36:46,440 --> 00:36:48,000
 - I was hoping I'd have another chance

824
00:36:48,000 --> 00:36:51,480
 because the impact fee is $5,352.

825
00:36:51,480 --> 00:36:56,640
 So when a property like this is annexed

826
00:36:56,640 --> 00:36:59,080
 and it exists in the county,

827
00:36:59,080 --> 00:37:04,000
 the county is required to establish a three-person committee

828
00:37:04,000 --> 00:37:08,920
 to represent the residents that are in the annexed areas.

829
00:37:08,920 --> 00:37:10,880
 This particular one was an interesting one

830
00:37:10,880 --> 00:37:14,240
 because there was a private distribution system

831
00:37:14,240 --> 00:37:17,280
 in place already that was providing service

832
00:37:17,280 --> 00:37:19,360
 to all of these lots.

833
00:37:19,360 --> 00:37:22,120
 And because we could not take over

834
00:37:22,120 --> 00:37:23,800
 the private distribution system,

835
00:37:23,800 --> 00:37:26,320
 what was contemplated was an extension of service

836
00:37:26,320 --> 00:37:31,200
 to actually provide city water

837
00:37:31,200 --> 00:37:32,920
 to the above ground storage tank

838
00:37:32,920 --> 00:37:35,720
 that was being used with the well.

839
00:37:35,720 --> 00:37:37,240
 And then the above ground storage tank

840
00:37:37,240 --> 00:37:38,360
 would actually distribute it

841
00:37:38,360 --> 00:37:40,280
 to the rest of the residents.

842
00:37:40,280 --> 00:37:45,280
 And so in terms of the representation

843
00:37:45,280 --> 00:37:49,240
 in the annexation that's done by the committee,

844
00:37:49,240 --> 00:37:53,040
 there is always an opportunity for someone to come in

845
00:37:53,040 --> 00:37:57,400
 and ask to not be annexed in as a part of that process.

846
00:37:57,400 --> 00:38:00,080
 That didn't happen in this particular case.

847
00:38:00,080 --> 00:38:03,200
 - I guess my question was, did the city come say,

848
00:38:03,200 --> 00:38:07,080
 we're going to take you in and establish that committee,

849
00:38:07,080 --> 00:38:11,080
 or did the landowners say, come take us into the city?

850
00:38:11,080 --> 00:38:12,920
 Who initiated the annexation?

851
00:38:12,920 --> 00:38:17,000
 - The annexation encompassed a much larger area

852
00:38:17,000 --> 00:38:18,920
 than this particular place,

853
00:38:18,920 --> 00:38:22,240
 and it was instigated by the city.

854
00:38:22,240 --> 00:38:24,640
 - Okay, so the city said, we're going to come

855
00:38:24,640 --> 00:38:26,440
 take you into the city. - That's correct.

856
00:38:26,440 --> 00:38:28,160
 - As opposed to the landowners saying,

857
00:38:28,160 --> 00:38:29,480
 please come take us. - That's correct.

858
00:38:29,480 --> 00:38:30,320
 - Thanks.

859
00:38:30,320 --> 00:38:32,600
 - Could I ask one question?

860
00:38:32,600 --> 00:38:33,440
 - Yes, sir.

861
00:38:33,440 --> 00:38:35,000
 - Are there any other communities

862
00:38:36,400 --> 00:38:39,320
 where this same situation could happen?

863
00:38:39,320 --> 00:38:42,160
 - So there are other communities

864
00:38:42,160 --> 00:38:44,680
 that are served by private wells.

865
00:38:44,680 --> 00:38:47,760
 Either they're small enough to not be regulated by the state

866
00:38:47,760 --> 00:38:51,080
 or they're large enough that they do have a state regulation

867
00:38:51,080 --> 00:38:53,400
 and a public large supply designation.

868
00:38:53,400 --> 00:38:58,120
 At this point in time, staff is aware of them.

869
00:38:58,120 --> 00:39:03,120
 We don't think any would immediately replicate this,

870
00:39:03,120 --> 00:39:06,040
 but it could always happen in the future

871
00:39:06,040 --> 00:39:07,560
 with anyone or any group

872
00:39:07,560 --> 00:39:09,000
 that are being served by a private well

873
00:39:09,000 --> 00:39:14,000
 for that private well supplier to cease that supply,

874
00:39:14,000 --> 00:39:17,720
 and residents would be required

875
00:39:17,720 --> 00:39:20,240
 to connect to some other water source,

876
00:39:20,240 --> 00:39:21,840
 whether it be their own well,

877
00:39:21,840 --> 00:39:23,040
 if their wells are large enough

878
00:39:23,040 --> 00:39:24,560
 and they can meet all the requirements,

879
00:39:24,560 --> 00:39:25,840
 or to connect to the city.

880
00:39:25,840 --> 00:39:32,040
 - And the owner of this water company really is,

881
00:39:34,760 --> 00:39:38,760
 does he or she have any responsibilities at all now?

882
00:39:38,760 --> 00:39:41,000
 Are they off the hook as well?

883
00:39:41,000 --> 00:39:42,360
 - So what we had determined,

884
00:39:42,360 --> 00:39:47,360
 and we did a lot of asking and questions,

885
00:39:47,360 --> 00:39:49,920
 a lot of questions to the state,

886
00:39:49,920 --> 00:39:53,200
 particularly the TCEQ and PUC, Public Utility Commission,

887
00:39:53,200 --> 00:39:55,840
 and what they had determined

888
00:39:55,840 --> 00:40:00,840
 was that it was not large enough to warrant their regulation.

889
00:40:01,720 --> 00:40:06,000
 So they saw it as just a private relationship

890
00:40:06,000 --> 00:40:09,400
 between a supplier and a purchaser.

891
00:40:09,400 --> 00:40:12,880
 The city, however, armed with evidence,

892
00:40:12,880 --> 00:40:14,880
 presented a case to the contrary

893
00:40:14,880 --> 00:40:15,960
 that it should have been,

894
00:40:15,960 --> 00:40:17,120
 and it should have been for a while,

895
00:40:17,120 --> 00:40:18,880
 regulated by the state.

896
00:40:18,880 --> 00:40:22,240
 We submitted that to the PUC and the TCEQ.

897
00:40:22,240 --> 00:40:25,280
 We were told we would receive an official response.

898
00:40:25,280 --> 00:40:27,240
 Based on that information submitted,

899
00:40:27,240 --> 00:40:30,560
 to date we have not received a response.

900
00:40:30,560 --> 00:40:31,800
 - And how long has it been

901
00:40:31,800 --> 00:40:36,120
 since we've supplied that information approximately?

902
00:40:36,120 --> 00:40:37,760
 - At least two months.

903
00:40:37,760 --> 00:40:41,840
 - And what's the determining factor?

904
00:40:41,840 --> 00:40:44,480
 Number of households, 25?

905
00:40:44,480 --> 00:40:47,360
 - Number of households and/or number of connections

906
00:40:47,360 --> 00:40:48,600
 and number of quotients served,

907
00:40:48,600 --> 00:40:51,120
 depending on which entity you're working with.

908
00:40:51,120 --> 00:40:52,120
 - Okay, thanks.

909
00:40:52,120 --> 00:40:55,320
 - Thanks.

910
00:40:55,320 --> 00:40:56,560
 - You got it.

911
00:40:56,560 --> 00:40:59,440
 - I have one comment I'd like to make.

912
00:40:59,440 --> 00:41:01,440
 I had a little time yesterday morning in the group,

913
00:41:01,440 --> 00:41:03,400
 I saw what it is,

914
00:41:03,400 --> 00:41:07,280
 and the code violations that are in place in some,

915
00:41:07,280 --> 00:41:09,320
 but not all, of these properties

916
00:41:09,320 --> 00:41:11,880
 are at a level that I would call obscene.

917
00:41:11,880 --> 00:41:16,160
 They are extremely bad.

918
00:41:16,160 --> 00:41:22,000
 And I would hope that the city

919
00:41:22,000 --> 00:41:24,240
 and the city manager's office

920
00:41:24,240 --> 00:41:27,400
 would have, since it's been since November,

921
00:41:27,400 --> 00:41:31,600
 been aware of those and have coded enforcement actions

922
00:41:31,600 --> 00:41:32,880
 well underway.

923
00:41:32,880 --> 00:41:36,000
 It's as extreme as I've ever seen.

924
00:41:36,000 --> 00:41:38,360
 I've been in a mold on markets, so I,

925
00:41:38,360 --> 00:41:41,640
 these are really, really awful

926
00:41:41,640 --> 00:41:44,240
 and it needs some action taken on that.

927
00:41:44,240 --> 00:41:47,280
 I realize we have public utilities working on that,

928
00:41:47,280 --> 00:41:49,680
 but it looks to me, my observation is,

929
00:41:49,680 --> 00:41:52,520
 there are some single family residences

930
00:41:52,520 --> 00:41:55,080
 that are in need of our help,

931
00:41:55,080 --> 00:41:56,640
 and then there's some other properties

932
00:41:56,640 --> 00:41:59,960
 that are completely neglected,

933
00:41:59,960 --> 00:42:03,800
 causing a real safety problem,

934
00:42:03,800 --> 00:42:07,160
 and we're right next to concrete elementary,

935
00:42:07,160 --> 00:42:08,240
 10th of a mile.

936
00:42:08,240 --> 00:42:13,320
 So it is, in my opinion, a severe problem.

937
00:42:13,320 --> 00:42:15,240
 - A severe health risk.

938
00:42:15,240 --> 00:42:16,080
 Health and safety.

939
00:42:16,080 --> 00:42:23,080
 - This was not shown on any slide in prior to this meeting.

940
00:42:23,080 --> 00:42:24,520
 Just to summarize the council,

941
00:42:24,520 --> 00:42:27,120
 the direction we received on the fourth

942
00:42:27,120 --> 00:42:28,440
 was that we would, again,

943
00:42:28,440 --> 00:42:30,760
 continue to ask for previous direction from the tent,

944
00:42:30,760 --> 00:42:33,240
 particularly with the provision of temporary water

945
00:42:33,240 --> 00:42:34,480
 and working with the residents

946
00:42:34,480 --> 00:42:36,600
 to just gather as much information we can

947
00:42:36,600 --> 00:42:39,000
 on the future intentions of each property,

948
00:42:39,000 --> 00:42:42,560
 whether they want to connect to the system or not.

949
00:42:42,560 --> 00:42:45,320
 We are going to continue to communicate

950
00:42:45,320 --> 00:42:46,760
 connection requirements,

951
00:42:46,760 --> 00:42:49,360
 and pay queues, letters, door-to-door,

952
00:42:49,360 --> 00:42:51,160
 whatever we need just so that they know

953
00:42:51,160 --> 00:42:53,000
 what is required of them in detail,

954
00:42:53,000 --> 00:42:54,960
 and, of course, to make ourselves available

955
00:42:54,960 --> 00:42:58,520
 as much as we can in dual language,

956
00:42:58,520 --> 00:42:59,920
 Spanish language and English language,

957
00:42:59,920 --> 00:43:01,960
 because most of the folks living out there

958
00:43:01,960 --> 00:43:03,800
 are Spanish speakers.

959
00:43:03,800 --> 00:43:08,080
 We are scheduling a council discussion

960
00:43:08,080 --> 00:43:11,080
 on the feasibility of a per-ad agreement

961
00:43:11,080 --> 00:43:11,960
 and what that might look like.

962
00:43:11,960 --> 00:43:13,240
 This was requested by the council

963
00:43:13,240 --> 00:43:17,280
 and is currently scheduled for the 18th of February.

964
00:43:17,280 --> 00:43:19,120
 And then we're gonna provide additional information

965
00:43:19,120 --> 00:43:20,320
 to council that they requested

966
00:43:20,320 --> 00:43:23,280
 regarding inspection requirements.

967
00:43:23,280 --> 00:43:26,040
 Do those look like what exactly do we have to inspect

968
00:43:26,040 --> 00:43:27,960
 when someone connects to the water system?

969
00:43:27,960 --> 00:43:30,920
 And also our code requirements, generally,

970
00:43:30,920 --> 00:43:32,960
 particularly for those residents

971
00:43:32,960 --> 00:43:35,080
 who want to do some of the plumbing work themselves.

972
00:43:35,080 --> 00:43:36,600
 We at least want to have an idea

973
00:43:36,600 --> 00:43:39,480
 of what would be required if they do hire a licensed plumber

974
00:43:39,480 --> 00:43:43,080
 to provide a little more detail with the council as well.

975
00:43:43,080 --> 00:43:45,400
 And then we are scheduled to update council

976
00:43:45,400 --> 00:43:49,360
 one month prior to the May 22nd expiration.

977
00:43:49,360 --> 00:43:52,760
 So somewhere on or about April 23rd,

978
00:43:52,760 --> 00:43:53,800
 we will give them an update

979
00:43:53,800 --> 00:43:55,440
 on where the residents are at,

980
00:43:55,440 --> 00:43:58,760
 how many are interested in connecting to the city,

981
00:43:58,760 --> 00:44:00,880
 and how far along they feel they are

982
00:44:00,880 --> 00:44:02,680
 to be ready to connect to the city.

983
00:44:02,680 --> 00:44:05,840
 And with that, I'm happy to answer

984
00:44:05,840 --> 00:44:08,200
 any of the questions that you may have.

985
00:44:08,200 --> 00:44:10,000
 - Any others?

986
00:44:10,000 --> 00:44:11,920
 - Just a comment here.

987
00:44:11,920 --> 00:44:14,080
 It seems to me that there's a lot of lessons

988
00:44:14,080 --> 00:44:18,200
 to be learned here from this episode in Denton City.

989
00:44:19,400 --> 00:44:22,640
 The city initiated the annexation.

990
00:44:22,640 --> 00:44:24,040
 The residents did not.

991
00:44:24,040 --> 00:44:30,080
 And in doing so, the city, perhaps unawarely,

992
00:44:30,080 --> 00:44:34,680
 unknowingly, took on some financial liability

993
00:44:34,680 --> 00:44:37,760
 that they didn't realize it was going to have.

994
00:44:37,760 --> 00:44:42,600
 So maybe somebody should take a look

995
00:44:42,600 --> 00:44:47,600
 at all these other similar areas like they had mentioned,

996
00:44:48,200 --> 00:44:53,200
 and do some kind of a preliminary cost analysis.

997
00:44:53,200 --> 00:44:56,720
 If you duplicate this same scenario

998
00:44:56,720 --> 00:44:59,280
 in these other locations,

999
00:44:59,280 --> 00:45:03,120
 if they're the ones that were annexed,

1000
00:45:03,120 --> 00:45:06,560
 one of the residents of those spots did not request it,

1001
00:45:06,560 --> 00:45:11,120
 but the city wanted to include them in the city loans.

1002
00:45:11,120 --> 00:45:15,200
 So this is an opportunity to think these things through,

1003
00:45:15,200 --> 00:45:17,240
 I think, in more detail.

1004
00:45:18,960 --> 00:45:21,400
 - And if I can, I think you're absolutely right.

1005
00:45:21,400 --> 00:45:23,400
 This is a unique situation

1006
00:45:23,400 --> 00:45:25,000
 that the city has learned a lot from,

1007
00:45:25,000 --> 00:45:26,400
 but one of the things that we have done

1008
00:45:26,400 --> 00:45:28,880
 is to begin the process of understanding more

1009
00:45:28,880 --> 00:45:32,640
 about what other neighborhoods might present

1010
00:45:32,640 --> 00:45:36,560
 a similar situation, probably not exactly,

1011
00:45:36,560 --> 00:45:38,640
 but a similar situation in the future,

1012
00:45:38,640 --> 00:45:41,800
 or have the possibility of that being an option

1013
00:45:41,800 --> 00:45:44,120
 in the future, and to be prepared for that.

1014
00:45:44,120 --> 00:45:45,400
 So you're absolutely right.

1015
00:45:45,400 --> 00:45:50,400
 And that is starting to look into that as well.

1016
00:45:50,400 --> 00:45:53,280
 - Thank you. - Thank you.

1017
00:45:53,280 --> 00:45:55,240
 - The next item is the consent agenda.

1018
00:45:55,240 --> 00:45:58,240
 We have items A through E.

1019
00:45:58,240 --> 00:46:03,040
 Does any board member wish to pull one of the items?

1020
00:46:03,040 --> 00:46:04,560
 - Got a question on B.

1021
00:46:04,560 --> 00:46:05,840
 - On B, all right.

1022
00:46:05,840 --> 00:46:09,080
 - It's an easy one.

1023
00:46:09,080 --> 00:46:11,200
 - All right, yes.

1024
00:46:11,200 --> 00:46:15,280
 We have a motion to approve A, C, D, and E.

1025
00:46:16,080 --> 00:46:18,360
 - Almost approved.

1026
00:46:18,360 --> 00:46:19,200
 - That's it.

1027
00:46:19,200 --> 00:46:20,600
 - All in favor, say aye.

1028
00:46:20,600 --> 00:46:21,440
 - Aye.

1029
00:46:21,440 --> 00:46:22,880
 - All in favor, say aye. - Aye.

1030
00:46:22,880 --> 00:46:23,720
 - Here it is.

1031
00:46:23,720 --> 00:46:24,560
 Item B.

1032
00:46:24,560 --> 00:46:31,400
 And it's RFP for utilities, scale, size, and work.

1033
00:46:31,400 --> 00:46:32,240
 - Okay.

1034
00:46:32,240 --> 00:46:33,080
 - And it's D.

1035
00:46:33,080 --> 00:46:40,840
 - Good morning, you got a target

1036
00:46:40,840 --> 00:46:42,960
 on duty, assistant general manager, DME.

1037
00:46:42,960 --> 00:46:43,800
 - Yeah.

1038
00:46:43,800 --> 00:46:47,560
 - All right, Terry, this is perhaps a silly question.

1039
00:46:47,560 --> 00:46:52,560
 What in the world is a utility scale for solar energy?

1040
00:46:52,560 --> 00:46:54,200
 - Not a silly question.

1041
00:46:54,200 --> 00:46:58,920
 I think anything over a megawatt

1042
00:46:58,920 --> 00:47:02,960
 is considered a utility scale solar installation.

1043
00:47:02,960 --> 00:47:08,920
 We're seeking to reject this bid because, as you recall,

1044
00:47:11,240 --> 00:47:13,880
 we now are attaining our 100%,

1045
00:47:13,880 --> 00:47:16,760
 we've got under contract, 100% renewal.

1046
00:47:16,760 --> 00:47:19,800
 This was a long-term contract

1047
00:47:19,800 --> 00:47:23,320
 that was done at the end of 2000,

1048
00:47:23,320 --> 00:47:26,720
 RFP that was done at the end of 2018.

1049
00:47:26,720 --> 00:47:31,080
 And I think as we discussed before,

1050
00:47:31,080 --> 00:47:33,240
 we're looking to get some temporal diversity

1051
00:47:33,240 --> 00:47:36,560
 into the portfolio of some shorter-term contracts.

1052
00:47:36,560 --> 00:47:40,920
 We have bids that will be opening here in the next week.

1053
00:47:41,720 --> 00:47:46,000
 That will be alternatives to this particular requisition

1054
00:47:46,000 --> 00:47:48,000
 that will enable us to be able to get both.

1055
00:47:48,000 --> 00:47:52,400
 We can dial in the volumes we want

1056
00:47:52,400 --> 00:47:54,880
 and dial in terms that we want.

1057
00:47:54,880 --> 00:47:55,840
 - Okay.

1058
00:47:55,840 --> 00:48:00,600
 So this is really just requesting an order

1059
00:48:00,600 --> 00:48:03,080
 is to reject the proposal you received.

1060
00:48:03,080 --> 00:48:03,920
 - Correct.

1061
00:48:03,920 --> 00:48:05,200
 - Because they're not favorable.

1062
00:48:05,200 --> 00:48:07,040
 My end up was a scale,

1063
00:48:07,040 --> 00:48:10,000
 I thought you were measuring it the way the staff takes.

1064
00:48:11,200 --> 00:48:14,400
 - And you also weighed solar energy quite a bit.

1065
00:48:14,400 --> 00:48:16,440
 - Okay, I get it.

1066
00:48:16,440 --> 00:48:18,600
 - I have one more question.

1067
00:48:18,600 --> 00:48:25,240
 Would this energy be in the form of REX?

1068
00:48:25,240 --> 00:48:29,560
 - This particular one was specified in the RFP

1069
00:48:29,560 --> 00:48:32,040
 as both energy and REX.

1070
00:48:32,040 --> 00:48:35,800
 So unlike the Whitetail contract,

1071
00:48:35,800 --> 00:48:39,960
 which has a bifurcation of energy and REX,

1072
00:48:39,960 --> 00:48:44,200
 this one was a combined energy and REX.

1073
00:48:44,200 --> 00:48:47,800
 - And the new contracts that you proposed

1074
00:48:47,800 --> 00:48:51,480
 that you're just putting out, what happened?

1075
00:48:51,480 --> 00:48:53,000
 - They would be combined as well.

1076
00:48:53,000 --> 00:48:54,320
 - Okay.

1077
00:48:54,320 --> 00:48:58,120
 A little question just to educate myself.

1078
00:48:58,120 --> 00:49:01,360
 Is there a limited number of REX in the system

1079
00:49:01,360 --> 00:49:06,360
 or does ERCOT say we can only carry this much

1080
00:49:06,360 --> 00:49:07,680
 in the portfolio?

1081
00:49:08,640 --> 00:49:10,240
 - There's no limit.

1082
00:49:10,240 --> 00:49:14,600
 As long as a renewable energy generator

1083
00:49:14,600 --> 00:49:18,080
 is permitted to interconnect with the grid,

1084
00:49:18,080 --> 00:49:20,040
 it is eligible to receive REX.

1085
00:49:20,040 --> 00:49:21,920
 - Thank you.

1086
00:49:21,920 --> 00:49:26,160
 - Do we have a motion to approve IDB?

1087
00:49:26,160 --> 00:49:29,840
 - I second.

1088
00:49:29,840 --> 00:49:31,200
 - All in favor say aye.

1089
00:49:31,200 --> 00:49:32,280
 - Aye.

1090
00:49:32,280 --> 00:49:34,000
 - Opposed, motion carries.

1091
00:49:34,000 --> 00:49:38,040
 Next item is consider approval of the minutes

1092
00:49:38,040 --> 00:49:41,200
 of January 27th, 2020.

1093
00:49:41,200 --> 00:49:42,720
 Does anyone have any changes?

1094
00:49:42,720 --> 00:49:45,560
 - Approved.

1095
00:49:45,560 --> 00:49:46,400
 - Second.

1096
00:49:46,400 --> 00:49:47,240
 - Okay.

1097
00:49:47,240 --> 00:49:48,080
 All in favor say aye.

1098
00:49:48,080 --> 00:49:48,920
 - Aye.

1099
00:49:48,920 --> 00:49:50,880
 - I have a B.

1100
00:49:50,880 --> 00:49:52,600
 - I have a comment.

1101
00:49:52,600 --> 00:49:54,200
 - Sure you can, of course.

1102
00:49:54,200 --> 00:49:58,600
 - I just wanted to congratulate the minute taker

1103
00:49:58,600 --> 00:50:02,080
 on the format for this and that the responses

1104
00:50:02,080 --> 00:50:04,120
 are actually done in bolder faces.

1105
00:50:04,120 --> 00:50:05,960
 A lot easier to read.

1106
00:50:05,960 --> 00:50:06,800
 Thanks.

1107
00:50:08,680 --> 00:50:10,520
 - No, thank you.

1108
00:50:10,520 --> 00:50:13,960
 - Okay, item B is consider the adoption of an ordinance

1109
00:50:13,960 --> 00:50:16,840
 for the construction of the North-South Watermain

1110
00:50:16,840 --> 00:50:17,880
 phase three project.

1111
00:50:17,880 --> 00:50:28,120
 - Good morning, Madam Chair, members of the board.

1112
00:50:28,120 --> 00:50:29,160
 My name is Seth Garcia.

1113
00:50:29,160 --> 00:50:31,880
 I'm a project manager with Capital Projects.

1114
00:50:31,880 --> 00:50:33,680
 Today I'll be doing a short presentation

1115
00:50:33,680 --> 00:50:35,920
 on the award of construction contract

1116
00:50:35,920 --> 00:50:38,440
 for North-South Watermain phase three.

1117
00:50:38,440 --> 00:50:45,640
 A little project overview and a little background.

1118
00:50:45,640 --> 00:50:49,800
 Phase one of this project was completed in 2011.

1119
00:50:49,800 --> 00:50:52,440
 It runs from the northern extent of this project

1120
00:50:52,440 --> 00:50:55,120
 all the way to loop 288.

1121
00:50:55,120 --> 00:50:57,680
 Phase two of this project is currently under construction

1122
00:50:57,680 --> 00:50:59,920
 and runs from Rose Lawn all the way

1123
00:50:59,920 --> 00:51:01,840
 to the southern end of this project.

1124
00:51:01,840 --> 00:51:05,120
 So phase three ultimately will tie the two pieces together

1125
00:51:05,120 --> 00:51:07,560
 and provide a 42-inch transmission lane

1126
00:51:07,560 --> 00:51:10,840
 from north of loop 288 all the way to Rose Lawn,

1127
00:51:10,840 --> 00:51:11,680
 south of town.

1128
00:51:11,680 --> 00:51:16,040
 This particular phase consists of a project

1129
00:51:16,040 --> 00:51:20,800
 that is 4,200 feet of 42-inch poly-coated steel main

1130
00:51:20,800 --> 00:51:23,840
 as well as 900 feet of 12-inch water main

1131
00:51:23,840 --> 00:51:26,200
 that needs to be relocated along Bonnie Break

1132
00:51:26,200 --> 00:51:28,640
 for the installation of this line.

1133
00:51:28,640 --> 00:51:32,680
 The extents for this is completely on Bonnie Break itself

1134
00:51:32,680 --> 00:51:36,200
 from basically the Tex-Dot area office

1135
00:51:36,200 --> 00:51:38,600
 just north of the I-35 service road

1136
00:51:38,600 --> 00:51:40,600
 to just south of the Panhandle.

1137
00:51:40,600 --> 00:51:47,800
 The solicitation was sent to 296 bidders.

1138
00:51:47,800 --> 00:51:50,120
 We received eight bids,

1139
00:51:50,120 --> 00:51:52,840
 the lowest being S&J Construction Company

1140
00:51:52,840 --> 00:51:55,480
 at $4,551.

1141
00:51:55,480 --> 00:52:00,520
 A little breakdown of our schedule.

1142
00:52:00,520 --> 00:52:02,400
 With your approval, we'll go for Councilor Moore

1143
00:52:02,400 --> 00:52:04,280
 next week, February 18th.

1144
00:52:04,280 --> 00:52:07,400
 A notice to proceed will be issued shortly after that

1145
00:52:07,400 --> 00:52:11,280
 and construction will be completed by February 2021.

1146
00:52:11,280 --> 00:52:18,640
 Staff recommends accepting the competitive little bid

1147
00:52:18,640 --> 00:52:21,880
 to S&J Construction for the north-south water main phase three

1148
00:52:21,880 --> 00:52:26,040
 in the amount of $4,551.18.

1149
00:52:26,040 --> 00:52:29,840
 Any questions? - Questions.

1150
00:52:29,840 --> 00:52:32,640
 - Yeah, I have a question. Has this firm done work

1151
00:52:32,640 --> 00:52:34,200
 for Denton before?

1152
00:52:34,200 --> 00:52:37,560
 - This is the first time this firm has done work in Denton.

1153
00:52:37,560 --> 00:52:40,040
 Most recently, as one of their references,

1154
00:52:40,040 --> 00:52:41,960
 they did some work for Wichita Falls

1155
00:52:41,960 --> 00:52:44,720
 with their reuse issue.

1156
00:52:44,720 --> 00:52:47,760
 They laid a lot of the reuse line for that.

1157
00:52:47,760 --> 00:52:49,560
 - Okay, that's the follow-up question.

1158
00:52:49,560 --> 00:52:52,000
 What is the process within your department

1159
00:52:52,000 --> 00:52:55,120
 for evaluating new contractors like this?

1160
00:52:55,120 --> 00:52:58,240
 - So with this one, we actually took some precautions

1161
00:52:58,240 --> 00:53:00,720
 just because of the type of pipe that it is.

1162
00:53:00,720 --> 00:53:02,240
 It's not a very common pipe.

1163
00:53:02,240 --> 00:53:04,400
 It's 42-inch poly-coated steel.

1164
00:53:04,400 --> 00:53:06,960
 There's only generally a handful of contractors

1165
00:53:06,960 --> 00:53:08,800
 that are doing this around.

1166
00:53:08,800 --> 00:53:12,840
 So our engineering firm actually reached out

1167
00:53:12,840 --> 00:53:15,440
 to the three references listed.

1168
00:53:15,440 --> 00:53:17,800
 All three gave favorable references.

1169
00:53:17,800 --> 00:53:22,520
 Through purchasing, we got some clarification on a few things

1170
00:53:22,520 --> 00:53:26,520
 and our engineer felt comfortable recommending them

1171
00:53:26,520 --> 00:53:29,040
 for the construction contract.

1172
00:53:29,040 --> 00:53:33,520
 - Move to approve.

1173
00:53:33,520 --> 00:53:34,360
 - All right.

1174
00:53:34,360 --> 00:53:35,200
 - Second.

1175
00:53:35,200 --> 00:53:36,360
 - All in favor say aye.

1176
00:53:36,360 --> 00:53:37,200
 - Aye.

1177
00:53:37,200 --> 00:53:38,520
 - Motion carries.

1178
00:53:38,520 --> 00:53:39,360
 - Thank you.

1179
00:53:39,360 --> 00:53:42,720
 - Next item is consider recommending adoption

1180
00:53:42,720 --> 00:53:46,920
 of a new ordinance for the city of Denton

1181
00:53:46,920 --> 00:53:50,240
 to execute a contract with quality excavation LLC

1182
00:53:50,240 --> 00:53:53,840
 for the 2019 street reconstruction projects.

1183
00:53:56,520 --> 00:53:59,360
 (papers rustling)

1184
00:53:59,360 --> 00:54:06,440
 - Justin, you put a normal thing over here?

1185
00:54:06,440 --> 00:54:07,280
 - Mm-hmm.

1186
00:54:07,280 --> 00:54:11,000
 - Justin, you put a normal thing over here?

1187
00:54:11,000 --> 00:54:16,320
 I'm sorry, I'm out of time.

1188
00:54:16,320 --> 00:54:19,160
 (papers rustling)

1189
00:54:19,160 --> 00:54:23,280
 (coughing)

1190
00:54:26,840 --> 00:54:27,680
 - Go.

1191
00:54:27,680 --> 00:54:36,520
 - All right, good morning.

1192
00:54:36,520 --> 00:54:37,480
 My name is Trevor Cranny.

1193
00:54:37,480 --> 00:54:40,520
 I'm a project manager in the capital projects.

1194
00:54:40,520 --> 00:54:42,920
 Today, we're gonna be talking about

1195
00:54:42,920 --> 00:54:45,600
 the 2019 street reconstruction project.

1196
00:54:45,600 --> 00:54:50,520
 We're looking to award contract to quality excavation.

1197
00:54:55,160 --> 00:54:57,400
 So a small overview of this project.

1198
00:54:57,400 --> 00:55:00,040
 As you can see, it's kinda spread out throughout the city.

1199
00:55:00,040 --> 00:55:03,880
 What we did was pick those four main areas

1200
00:55:03,880 --> 00:55:07,920
 that consist of roadway water and wastewater improvements

1201
00:55:07,920 --> 00:55:09,560
 on a section of Hercules Lane,

1202
00:55:09,560 --> 00:55:12,560
 Scripture Street, Thomas Street, and Mary Drive.

1203
00:55:12,560 --> 00:55:18,560
 The breakdown on that is we have on Scripture,

1204
00:55:18,560 --> 00:55:21,040
 we're doing street and some sewer work.

1205
00:55:21,040 --> 00:55:24,200
 On Windsor, we're doing street and water and sewer.

1206
00:55:24,200 --> 00:55:26,160
 On the other two streets, Hercules and Thomas,

1207
00:55:26,160 --> 00:55:28,440
 we're just doing some street reconstruction.

1208
00:55:28,440 --> 00:55:35,360
 So we got four bids on this one.

1209
00:55:35,360 --> 00:55:38,560
 As you can see, quality excavation was a low bid

1210
00:55:38,560 --> 00:55:39,880
 by almost $2 million.

1211
00:55:39,880 --> 00:55:42,880
 We did go through their bid

1212
00:55:42,880 --> 00:55:45,040
 'cause it was a pretty big difference.

1213
00:55:45,040 --> 00:55:47,520
 A lot of that difference is due to mobilization.

1214
00:55:47,520 --> 00:55:52,480
 Quality excavation does have a site here pretty close,

1215
00:55:52,480 --> 00:55:57,480
 so that kinda made a difference of where they made their low bid.

1216
00:55:57,480 --> 00:56:02,920
 Construction schedule, this is actually,

1217
00:56:02,920 --> 00:56:05,840
 we were shooting a little far in the future,

1218
00:56:05,840 --> 00:56:07,600
 but we're looking at a council next week

1219
00:56:07,600 --> 00:56:09,440
 if we get approved here.

1220
00:56:09,440 --> 00:56:11,520
 So this will actually move up a little bit.

1221
00:56:11,520 --> 00:56:13,320
 But it's a two-year contract.

1222
00:56:13,320 --> 00:56:15,520
 There are some schools located in these areas,

1223
00:56:15,520 --> 00:56:17,520
 so we wanna make sure we give them time

1224
00:56:17,520 --> 00:56:20,640
 to work on those schools during summer,

1225
00:56:20,640 --> 00:56:22,760
 when that is dictated in the contract.

1226
00:56:22,760 --> 00:56:28,960
 So we're recommending an adoption of an ordinance

1227
00:56:28,960 --> 00:56:30,680
 to accept a competitive low bid

1228
00:56:30,680 --> 00:56:32,560
 and awarding a public works contract

1229
00:56:32,560 --> 00:56:36,640
 for the construction of the 2019 Street Reconstruction Project,

1230
00:56:36,640 --> 00:56:39,080
 quality excavation, and not to exceed the amount

1231
00:56:39,080 --> 00:56:43,160
 of $10 million, $202,355.45.

1232
00:56:43,160 --> 00:56:48,200
 - Questions?

1233
00:56:48,200 --> 00:56:52,560
 DSF, what is your quality control process

1234
00:56:52,560 --> 00:56:54,480
 for a project like this?

1235
00:56:54,480 --> 00:56:57,200
 - Quality control, like as far as the construction itself?

1236
00:56:57,200 --> 00:56:58,120
 - Correct.

1237
00:56:58,120 --> 00:57:01,560
 - So in these contracts, we require the contractor

1238
00:57:01,560 --> 00:57:05,920
 to provide testing, to get a testing lab on one site,

1239
00:57:05,920 --> 00:57:08,600
 to test their materials.

1240
00:57:08,600 --> 00:57:11,680
 They have to do material testing,

1241
00:57:11,680 --> 00:57:13,960
 compaction testing, all those type of things.

1242
00:57:13,960 --> 00:57:17,000
 We also get a PO with the testing lab

1243
00:57:17,000 --> 00:57:21,160
 as far as the state's concern to spot check their testing.

1244
00:57:21,160 --> 00:57:24,440
 - So the contractor releases himself

1245
00:57:24,440 --> 00:57:26,880
 on whether he is attaining the right compaction.

1246
00:57:26,880 --> 00:57:28,720
 - That's correct.

1247
00:57:28,720 --> 00:57:29,560
 - I can answer that.

1248
00:57:29,560 --> 00:57:30,840
 My name is Dustin Roper.

1249
00:57:30,840 --> 00:57:34,240
 The program I get probably is,

1250
00:57:34,240 --> 00:57:36,040
 as we said, it's probably south in the states

1251
00:57:36,040 --> 00:57:37,920
 on this job, four hours to a minimum,

1252
00:57:37,920 --> 00:57:39,880
 four day out every day.

1253
00:57:39,880 --> 00:57:41,960
 Every time the last sample test,

1254
00:57:41,960 --> 00:57:44,400
 we'll even know that the contractor does provide

1255
00:57:44,400 --> 00:57:48,600
 the testing, the representative will sit in his letter.

1256
00:57:48,600 --> 00:57:51,800
 Every time the test, we'll give it up.

1257
00:57:51,800 --> 00:57:55,880
 Sorry, I don't know what this is, I'm cracking it up.

1258
00:57:55,880 --> 00:57:57,440
 In the other minute, for the worst of it,

1259
00:57:57,440 --> 00:57:59,120
 I'll be there, I'll probably be the manager

1260
00:57:59,120 --> 00:58:03,440
 or myself, go out and basically watch something like this.

1261
00:58:03,440 --> 00:58:06,600
 - One thing is specifically in the soil compaction,

1262
00:58:06,600 --> 00:58:08,240
 prior to placing the pavement.

1263
00:58:08,240 --> 00:58:11,520
 If a pavement breaks and fails,

1264
00:58:11,520 --> 00:58:13,280
 the year after, we put it down.

1265
00:58:13,280 --> 00:58:17,280
 Often times, that's because the soil wasn't prepared for that.

1266
00:58:17,280 --> 00:58:21,400
 And the nuclear density meter can be used to check

1267
00:58:21,400 --> 00:58:25,120
 compaction and you know the results now.

1268
00:58:25,120 --> 00:58:25,960
 Is that what you do?

1269
00:58:25,960 --> 00:58:26,800
 - Yes, sir.

1270
00:58:26,800 --> 00:58:27,640
 - That's correct.

1271
00:58:27,640 --> 00:58:29,120
 - It's also the water moisture content problem,

1272
00:58:29,120 --> 00:58:30,640
 what you're gonna do.

1273
00:58:30,640 --> 00:58:33,720
 It's also required to set a period of four or five days

1274
00:58:33,720 --> 00:58:37,000
 before we pay to make sure that there is no,

1275
00:58:37,000 --> 00:58:38,800
 when they're cracking, and so forth.

1276
00:58:38,800 --> 00:58:41,440
 Yes, sir, and now?

1277
00:58:41,440 --> 00:58:43,120
 - So that is a good point.

1278
00:58:43,120 --> 00:58:44,400
 As every building is celebrating,

1279
00:58:44,400 --> 00:58:47,280
 we also put in a small list of what we test each week,

1280
00:58:47,280 --> 00:58:50,520
 so we don't have as many cracking that we have to hold.

1281
00:58:50,520 --> 00:58:55,520
 - Right, our respects do dictate the width

1282
00:58:55,520 --> 00:58:57,840
 that they have to compact in,

1283
00:58:57,840 --> 00:59:00,400
 what the materials have to be underneath the pipe,

1284
00:59:00,400 --> 00:59:04,040
 as far as the top of the pipe is concerned.

1285
00:59:04,040 --> 00:59:07,760
 - Any other questions?

1286
00:59:07,760 --> 00:59:10,080
 I was gonna ask a question about almost two million

1287
00:59:10,080 --> 00:59:12,320
 that you beat me to it, so.

1288
00:59:12,320 --> 00:59:13,240
 You knew that didn't you?

1289
00:59:13,240 --> 00:59:15,960
 - Yeah, they did have a couple other items,

1290
00:59:15,960 --> 00:59:19,240
 mainly on the water and wastewater that were a little lower,

1291
00:59:19,240 --> 00:59:22,360
 but the majority of the bulldozer they should cost that,

1292
00:59:22,360 --> 00:59:24,280
 whether it kind of be everybody else.

1293
00:59:24,280 --> 00:59:27,520
 - I have a motion to approve.

1294
00:59:27,520 --> 00:59:30,160
 - I move to approve.

1295
00:59:30,160 --> 00:59:31,360
 - I'll second.

1296
00:59:31,360 --> 00:59:32,840
 - All in favor say aye.

1297
00:59:32,840 --> 00:59:33,920
 - Aye.

1298
00:59:33,920 --> 00:59:35,280
 - Motion carries.

1299
00:59:35,280 --> 00:59:37,120
 Assistant manager R.P.

1300
00:59:37,120 --> 00:59:37,960
 Yes, sir.

1301
00:59:37,960 --> 00:59:41,440
 - Board members, we have a few items

1302
00:59:41,440 --> 00:59:44,240
 that are included in the ACM updates.

1303
00:59:44,240 --> 00:59:49,160
 The first one is the solid waste management study,

1304
00:59:49,160 --> 00:59:53,640
 and that is just an item for your information.

1305
00:59:53,640 --> 00:59:55,760
 This item is out on the street right now,

1306
00:59:55,760 --> 00:59:57,720
 it will be coming back to you

1307
00:59:57,720 --> 01:00:00,360
 once the evaluations have been done.

1308
01:00:00,360 --> 01:00:02,200
 Let's have one to provide that information

1309
01:00:02,200 --> 01:00:03,920
 to you ahead of time so you can come see

1310
01:00:03,920 --> 01:00:05,760
 what elements exist.

1311
01:00:05,760 --> 01:00:07,720
 Brian Burner is here if you have any questions

1312
01:00:07,720 --> 01:00:09,080
 about that particular item.

1313
01:00:12,440 --> 01:00:16,760
 - Okay, the next item is a development agreement

1314
01:00:16,760 --> 01:00:19,600
 for a development called Sagebrook,

1315
01:00:19,600 --> 01:00:23,200
 and what it will be is basically,

1316
01:00:23,200 --> 01:00:26,360
 oh, I'm so sorry, I almost did it.

1317
01:00:26,360 --> 01:00:31,360
 What it will be is essentially a development agreement

1318
01:00:31,360 --> 01:00:36,680
 for an area that's being voluntarily annexed into the city.

1319
01:00:36,680 --> 01:00:41,400
 The development agreement will be put in place

1320
01:00:41,400 --> 01:00:46,120
 we expect due to the location's preliminary conversations

1321
01:00:46,120 --> 01:00:47,760
 that we've been having with the developer

1322
01:00:47,760 --> 01:00:50,200
 that there will be an oversized participation agreement

1323
01:00:50,200 --> 01:00:52,840
 for wastewater services coming off of that,

1324
01:00:52,840 --> 01:00:55,680
 and so if that happens, and it likely will,

1325
01:00:55,680 --> 01:00:57,560
 you'll be seeing that item coming forward.

1326
01:00:57,560 --> 01:00:59,440
 We just wanted to give you a little context

1327
01:00:59,440 --> 01:01:04,440
 on what Sagebrook was and why this was coming forward

1328
01:01:04,440 --> 01:01:06,280
 with this development agreement.

1329
01:01:10,120 --> 01:01:15,120
 The future PUD items, we have just a couple on there.

1330
01:01:15,120 --> 01:01:21,320
 So the wastewater rate study you've received today,

1331
01:01:21,320 --> 01:01:24,480
 it's my understanding that the energy center dashboard

1332
01:01:24,480 --> 01:01:26,440
 had to be moved, there were a few more elements

1333
01:01:26,440 --> 01:01:29,280
 to be completed on it, and it is anticipated

1334
01:01:29,280 --> 01:01:32,040
 to be at the PUD meeting on the 24th.

1335
01:01:32,040 --> 01:01:37,000
 And then moving on to new business action items,

1336
01:01:37,000 --> 01:01:42,000
 so we head to the tour of the recycling center for crack,

1337
01:01:42,000 --> 01:01:44,360
 and it's my understanding that it's scheduled

1338
01:01:44,360 --> 01:01:46,440
 for this Wednesday the 12th.

1339
01:01:46,440 --> 01:01:50,200
 So I wish everybody a good tour on that,

1340
01:01:50,200 --> 01:01:54,080
 it's always an exciting thing to see.

1341
01:01:54,080 --> 01:01:58,200
 And then we're member of effort had asked about

1342
01:01:58,200 --> 01:02:02,440
 the process for equipment replacement

1343
01:02:02,440 --> 01:02:05,760
 that is scheduled for the next meeting on the 24th,

1344
01:02:05,760 --> 01:02:09,560
 and we can figure it all out, and that's all I have.

1345
01:02:09,560 --> 01:02:10,960
 - Thank you.

1346
01:02:10,960 --> 01:02:13,040
 All right, concluding items.

1347
01:02:13,040 --> 01:02:15,080
 Does the board now wish to have anything added

1348
01:02:15,080 --> 01:02:18,560
 to the future agenda or any comments?

1349
01:02:18,560 --> 01:02:23,680
 Do I have a motion to adjourn?

1350
01:02:23,680 --> 01:02:27,680
 All right, I'll adjourn.