WEBVTT 00:00:00.000 --> 00:00:05.000 - Okay, it is nine o'clock and we do have a quorum. 00:00:05.000 --> 00:00:12.240 So we'll call to order the February 10th, 00:00:12.240 --> 00:00:16.040 2020 City of Debt and Public Utilities Board. 00:00:16.040 --> 00:00:18.700 The first item is receive a report, 00:00:18.700 --> 00:00:20.820 hold a discussion, and give staff direction 00:00:20.820 --> 00:00:24.560 regarding credit and collections, performance, and processes. 00:00:24.560 --> 00:00:28.640 - Madam Chair, board members, 00:00:28.640 --> 00:00:31.040 Christa Foster, Utility Customer Service, 00:00:31.040 --> 00:00:33.320 and I'm here this morning just to give some updates 00:00:33.320 --> 00:00:35.960 on some of our different credit and collections processes. 00:00:35.960 --> 00:00:38.840 Most importantly, to give an update on the release 00:00:38.840 --> 00:00:43.340 in year today on outstanding bad debt. 00:00:43.340 --> 00:00:47.680 As everyone may remember, the new board members 00:00:47.680 --> 00:00:50.080 are certainly going to get the quick refresher 00:00:50.080 --> 00:00:52.460 that in February of 2018, we made some changes 00:00:52.460 --> 00:00:54.640 to our credit and collections practices. 00:00:54.640 --> 00:00:56.360 We added some additional funds 00:00:56.360 --> 00:00:59.000 to our plus one utility assistant program. 00:00:59.000 --> 00:01:01.640 We introduced a couple of new deposit waiver options 00:01:01.640 --> 00:01:02.560 for customers. 00:01:02.560 --> 00:01:07.680 Our internal credit score and rating system was modified, 00:01:07.680 --> 00:01:10.160 which was the largest of these changes. 00:01:10.160 --> 00:01:14.160 First, interest no longer counted as a credit event. 00:01:14.160 --> 00:01:18.280 Credit scoring allowed for additional occurrences 00:01:18.280 --> 00:01:20.720 before it impacted a customer negatively. 00:01:20.720 --> 00:01:23.080 And we changed our process from requiring 00:01:23.080 --> 00:01:26.040 a two month deposit on all at-risk accounts 00:01:26.040 --> 00:01:28.000 to one of our credit tiers 00:01:28.000 --> 00:01:30.600 requires a one month security deposit. 00:01:30.600 --> 00:01:34.320 When Navigate Consulting was here in March of 2019, 00:01:34.320 --> 00:01:37.240 they were reviewing our credit and collections processes 00:01:37.240 --> 00:01:39.160 and did express some concerns 00:01:39.160 --> 00:01:41.200 about the growing rate of the bad debt 00:01:41.200 --> 00:01:44.520 that we had seen since those changes had been put into place. 00:01:44.520 --> 00:01:47.200 And we made several updates through last spring and summer, 00:01:47.200 --> 00:01:49.800 with the last being August of 2019, 00:01:49.800 --> 00:01:52.200 when we provided the bad debt performance update 00:01:52.200 --> 00:01:55.440 to the public utilities board and the council. 00:01:55.440 --> 00:01:59.160 Since that time, when we came in August, 00:01:59.160 --> 00:02:01.120 it was trending in such a way 00:02:01.120 --> 00:02:06.120 that the FY18-19 bad debt growth was 44% higher 00:02:06.120 --> 00:02:10.680 than the previous year, which is very alarming. 00:02:10.680 --> 00:02:12.600 We were tasked to please come back 00:02:12.600 --> 00:02:14.240 with possible containment strategies 00:02:14.240 --> 00:02:16.040 if it was continuing to trend that way, 00:02:16.040 --> 00:02:18.440 but to be sure to monitor that growth. 00:02:18.440 --> 00:02:22.800 At this time, with the full third quarter included, 00:02:22.800 --> 00:02:25.000 the growth has slowed somewhat 00:02:25.000 --> 00:02:27.840 and we are at a total 26% increase 00:02:27.840 --> 00:02:30.120 over the previous year's bad debt, 00:02:30.120 --> 00:02:35.040 and that is just over $330,000 for that time period. 00:02:35.040 --> 00:02:39.120 It's stabilizing somewhat, 00:02:39.120 --> 00:02:41.560 but it is not fully stable on our debt growth. 00:02:41.560 --> 00:02:44.320 This is still an area of concern. 00:02:44.320 --> 00:02:46.840 We are not bringing containment strategies today, 00:02:46.840 --> 00:02:50.280 but we are still very closely monitoring the situation 00:02:50.280 --> 00:02:53.320 and requesting that no additional changes be made 00:02:53.320 --> 00:02:55.080 to our current processes. 00:02:55.080 --> 00:02:58.880 So the other thing that's important to note 00:02:58.880 --> 00:03:02.080 is that the very early data that we're beginning to see, 00:03:02.080 --> 00:03:05.680 we're starting to see that the decrease in bad debt growth 00:03:05.680 --> 00:03:10.680 as well as late fee assessments is going down, 00:03:10.680 --> 00:03:13.840 but that trend seems to follow the patterns 00:03:13.840 --> 00:03:15.360 that we're seeing with the growth 00:03:15.360 --> 00:03:17.320 in the Pay As You Go program. 00:03:17.320 --> 00:03:20.480 So we would like to continue focusing our efforts 00:03:20.480 --> 00:03:22.040 on the Pay As You Go currently 00:03:22.040 --> 00:03:24.000 as our cost containment strategy. 00:03:24.000 --> 00:03:28.200 The second reason that I'm here this morning 00:03:28.200 --> 00:03:31.080 is our Red Flags Rule. 00:03:31.080 --> 00:03:34.800 We will be bringing to council a Red Flags Rule ordinance 00:03:34.800 --> 00:03:36.840 to formalize our policy. 00:03:36.840 --> 00:03:40.600 As a quick summary, Red Flags Rule was enacted in 2008 00:03:40.600 --> 00:03:45.600 and all creditors were required to be in compliance by 2009. 00:03:45.600 --> 00:03:48.960 And all this is, the Red Flags Rule is here 00:03:48.960 --> 00:03:52.080 to formalize the requirement and the obligation 00:03:52.080 --> 00:03:54.760 that creditors have toward their customers 00:03:54.760 --> 00:03:57.800 to protect them from identity theft. 00:03:57.800 --> 00:04:01.040 So we have been following Red Flags practices, 00:04:01.040 --> 00:04:03.800 but during a review of our program 00:04:03.800 --> 00:04:07.520 and some of the things internally in our internal directives, 00:04:07.520 --> 00:04:09.880 we realized that there was never a formalized 00:04:09.880 --> 00:04:12.400 ordinance or policy brought to council. 00:04:12.400 --> 00:04:14.040 And so that's what we are doing now. 00:04:14.040 --> 00:04:15.960 We wanted to go ahead and just do that 00:04:15.960 --> 00:04:17.960 and get everything put together at once. 00:04:19.440 --> 00:04:23.880 When the Red Flags Rule first came out in 2008, 00:04:23.880 --> 00:04:26.800 Texas Municipal League put together a draft policy 00:04:26.800 --> 00:04:29.200 and program where they help with identifying the Red Flags 00:04:29.200 --> 00:04:33.840 as they apply to utilities in the municipal areas. 00:04:33.840 --> 00:04:37.240 We are using that model to create our program 00:04:37.240 --> 00:04:39.200 and we'll be bringing that back to you. 00:04:39.200 --> 00:04:44.040 So the next steps that we have is for you guys 00:04:44.040 --> 00:04:46.640 to review that as it comes back out of legal. 00:04:46.640 --> 00:04:48.520 We are going to recommend that it be adopted 00:04:48.520 --> 00:04:52.120 as it stands, that we will continue to monitor 00:04:52.120 --> 00:04:54.240 our uncollectible debt trend 00:04:54.240 --> 00:04:56.800 and we will be providing information back 00:04:56.800 --> 00:05:00.880 at the end of April, whether that be in a staff report, 00:05:00.880 --> 00:05:03.960 if there's nothing significant to report, 00:05:03.960 --> 00:05:05.560 but we may again be coming back 00:05:05.560 --> 00:05:07.760 with cost containment strategies 00:05:07.760 --> 00:05:10.280 if that changes significantly. 00:05:10.280 --> 00:05:12.920 That we're gonna continue with our current processes 00:05:12.920 --> 00:05:16.440 and focus on the growth of our PHUO prepaid utilities. 00:05:19.280 --> 00:05:21.120 - And with that, are there any questions? 00:05:21.120 --> 00:05:25.680 - Yes, can we get a copy of the Red Flags provisions? 00:05:25.680 --> 00:05:26.840 - You will be getting a copy. 00:05:26.840 --> 00:05:29.080 I had hoped to attach them before this 00:05:29.080 --> 00:05:31.360 so we could have that kind of discussion. 00:05:31.360 --> 00:05:34.760 It was still illegal, so we hadn't quite gotten there, 00:05:34.760 --> 00:05:37.400 but it will be coming in a couple of weeks. 00:05:37.400 --> 00:05:41.160 But yes, we will make sure that you have a copy of that. 00:05:41.160 --> 00:05:43.600 - And back on the page with the graphs, 00:05:43.600 --> 00:05:48.120 I noticed one of the covers, three quarters, 00:05:48.120 --> 00:05:49.720 and one of them covers years. 00:05:49.720 --> 00:05:51.640 The dollar amount that's on that, 00:05:51.640 --> 00:05:53.680 is that the actual write-off 00:05:53.680 --> 00:05:55.520 or the balance of uncollectible debt? 00:05:55.520 --> 00:05:57.400 - That is the actual write-off. 00:05:57.400 --> 00:06:00.040 So as you see, the $448,000, 00:06:00.040 --> 00:06:03.000 that was the entire amount of written off bad debt 00:06:03.000 --> 00:06:06.440 for the entire FY17-18 fiscal year, 00:06:06.440 --> 00:06:09.400 where the 18-19 fiscal year to date 00:06:09.400 --> 00:06:13.400 is $330,000 for the first three quarters. 00:06:13.400 --> 00:06:16.000 - But the 18, we're talking about a three quarter period 00:06:16.000 --> 00:06:17.320 versus a four quarter period? 00:06:17.320 --> 00:06:18.160 - Correct. 00:06:18.160 --> 00:06:19.000 - So. 00:06:19.000 --> 00:06:19.840 - You will see. 00:06:19.840 --> 00:06:20.680 You will see it in the graph. 00:06:20.680 --> 00:06:22.160 - So $440,000 is the number, 00:06:22.160 --> 00:06:26.920 $330,000 times four over three would be $440,000. 00:06:26.920 --> 00:06:30.040 - Well, the third quarter is actually the lowest, 00:06:30.040 --> 00:06:31.600 as you can see in each of those graphs. 00:06:31.600 --> 00:06:33.360 That is the lowest amount of bad debt 00:06:33.360 --> 00:06:35.680 that we generally produce each year. 00:06:35.680 --> 00:06:37.120 - So it'll be more than $440,000. 00:06:37.120 --> 00:06:39.480 - Typically, well last year, 00:06:39.480 --> 00:06:43.600 the amount of debt in the fourth quarter was $180,000. 00:06:43.600 --> 00:06:47.440 And as of yet, we have not seen a quarter 00:06:47.440 --> 00:06:51.440 that has not had some level of growth overall. 00:06:51.440 --> 00:06:54.960 So it is likely that it will come in above that. 00:06:54.960 --> 00:06:57.160 - And the three quarters that you're showing 00:06:57.160 --> 00:07:02.160 on the 2018-19, is that through June 30th? 00:07:02.160 --> 00:07:04.400 - It would be through the June 30th, yes. 00:07:04.400 --> 00:07:05.640 - Okay, and what's the number 00:07:05.640 --> 00:07:07.960 from June 30th through September 30th? 00:07:07.960 --> 00:07:09.440 - We don't have a number yet. 00:07:09.440 --> 00:07:12.440 The way bad debt works is it's written off 00:07:12.440 --> 00:07:15.360 six months after the account closes. 00:07:15.360 --> 00:07:20.040 So what happens is we won't see those numbers 00:07:20.040 --> 00:07:20.920 for a delayed period, 00:07:20.920 --> 00:07:24.320 which is why we're not into the current fiscal year. 00:07:24.320 --> 00:07:27.480 It has to have been bad debt abandoned for some time. 00:07:27.480 --> 00:07:28.720 It will be the first of April, 00:07:28.720 --> 00:07:31.800 but for last year, we'll be completely closed out. 00:07:31.800 --> 00:07:34.220 - So how does this impact the city budget? 00:07:34.220 --> 00:07:39.200 Does the city budget have a number in there? 00:07:40.360 --> 00:07:42.600 - Where's finance? - Okay. 00:07:42.600 --> 00:07:49.600 - David Haynes, director of finance. 00:07:49.600 --> 00:07:51.040 As we budget each year, 00:07:51.040 --> 00:07:54.960 we take into account in our revenue projections, bad debt. 00:07:54.960 --> 00:07:57.600 So ultimately, when you look at any utility funds, 00:07:57.600 --> 00:08:00.360 it's represented in the revenue forecast that we have, 00:08:00.360 --> 00:08:02.640 and ultimately, the cost of services associated with that 00:08:02.640 --> 00:08:03.860 on the expense side. 00:08:03.860 --> 00:08:06.620 - So how much do you budget for 00:08:06.620 --> 00:08:09.620 in a year's time for bad debt release utility? 00:08:11.200 --> 00:08:14.280 - We can look at that, and I don't know off the top of my head. 00:08:14.280 --> 00:08:16.680 I think a figure for you is just part 00:08:16.680 --> 00:08:17.640 of our revenue projections, 00:08:17.640 --> 00:08:20.120 but we can come back and estimate that. 00:08:20.120 --> 00:08:22.280 And it's gonna be in line with what's here 00:08:22.280 --> 00:08:24.180 distributed amongst the utilities, 00:08:24.180 --> 00:08:28.560 but we don't necessarily have a line item for bad debt. 00:08:28.560 --> 00:08:32.320 - And this is just water and wastewater, is that true? 00:08:32.320 --> 00:08:33.880 - It includes electric as well. 00:08:33.880 --> 00:08:34.720 - Includes. 00:08:34.720 --> 00:08:40.080 - What was the impact? 00:08:40.080 --> 00:08:42.560 Most utilities do the two months deposit, 00:08:42.560 --> 00:08:47.560 because by the time we know that it's going bad, 00:08:47.560 --> 00:08:49.880 more than a month has passed. 00:08:49.880 --> 00:08:54.160 So is that the main reason why we're seeing the increase, 00:08:54.160 --> 00:08:57.320 and is it both residential and commercial? 00:08:57.320 --> 00:08:59.460 - It is primarily residential, 00:08:59.460 --> 00:09:02.240 and it is because we have 00:09:02.240 --> 00:09:05.840 far fewer residential deposits on file. 00:09:05.840 --> 00:09:09.640 We saw about an $800,000 decrease 00:09:09.640 --> 00:09:11.800 in the amount of funds that were attributed 00:09:11.800 --> 00:09:13.900 to residential departments. 00:09:13.900 --> 00:09:17.680 - And was that internal direction 00:09:17.680 --> 00:09:19.800 or direction from city council, or? 00:09:19.800 --> 00:09:21.660 - This was city council direction. 00:09:21.660 --> 00:09:27.040 - I was just curious if you had any demographics 00:09:27.040 --> 00:09:31.600 regarding the debt, particular sectors, students, residents? 00:09:31.600 --> 00:09:35.200 - Actually, we did provide some demographics 00:09:35.200 --> 00:09:38.400 in terms of, we took an overlay 00:09:38.400 --> 00:09:42.520 of the different income areas based on census data, 00:09:42.520 --> 00:09:45.800 and overlaid that with the uncollectible debt, 00:09:45.800 --> 00:09:48.320 and found that there was not a specific trend 00:09:48.320 --> 00:09:49.700 one way or the other. 00:09:49.700 --> 00:09:54.480 - Any other questions? 00:09:54.480 --> 00:09:58.320 Did you get what you need from us? 00:09:58.320 --> 00:09:59.160 - Absolutely. 00:09:59.160 --> 00:10:00.000 - Okay, thank you. 00:10:00.000 --> 00:10:01.100 - Thank you very much. 00:10:01.100 --> 00:10:03.560 - You did have another question, did you? 00:10:03.560 --> 00:10:05.220 - No. - Okay. 00:10:05.220 --> 00:10:07.600 - The next item is receive a presentation, 00:10:07.600 --> 00:10:10.000 and hold and discuss a discussion 00:10:10.000 --> 00:10:13.160 regarding the water and wastewater cost of service study. 00:10:13.160 --> 00:10:14.920 - Good morning, PUB Chair, 00:10:14.920 --> 00:10:17.720 Nick Benson, Assistant Director of Finance. 00:10:17.720 --> 00:10:19.640 I have a brief presentation for you this morning 00:10:19.640 --> 00:10:21.600 to review the cost of service and rate design study 00:10:21.600 --> 00:10:23.320 that we're currently in the process of updating 00:10:23.320 --> 00:10:24.840 for water and wastewater. 00:10:24.840 --> 00:10:26.640 If you have any questions, feel free to ask me. 00:10:26.640 --> 00:10:28.400 I can address there's plenty of staff 00:10:28.400 --> 00:10:30.400 that you have appeared to address, so. 00:10:30.400 --> 00:10:34.720 A quick overview of the presentation, 00:10:34.720 --> 00:10:36.640 so we will walk you through the cost of service 00:10:36.640 --> 00:10:39.160 and rate design process and what that looks like. 00:10:39.160 --> 00:10:41.120 We will also identify the process 00:10:41.120 --> 00:10:42.720 of identifying our revenue requirements. 00:10:42.720 --> 00:10:44.920 So how much revenue do we need from each customer class 00:10:44.920 --> 00:10:46.720 from water and wastewater to cover our cost 00:10:46.720 --> 00:10:47.800 of providing service. 00:10:47.800 --> 00:10:50.440 We'll also review the pricing objectives 00:10:50.440 --> 00:10:52.400 that are currently identified in this study, 00:10:52.400 --> 00:10:53.720 the existing one and the new one 00:10:53.720 --> 00:10:55.640 that we're currently in the process of updating, 00:10:55.640 --> 00:10:57.640 and also review the next steps with you. 00:10:57.640 --> 00:11:02.640 So the cost of service and rate design process 00:11:02.640 --> 00:11:06.120 in the fall of 2019, the city contacted with TELUS 00:11:06.120 --> 00:11:07.600 to update the city's cost of service 00:11:07.600 --> 00:11:09.160 and rate design study, 00:11:09.160 --> 00:11:11.080 and this study is updated every five years. 00:11:11.080 --> 00:11:12.520 The current study that is in place 00:11:12.520 --> 00:11:14.520 in the financial model that we're using 00:11:14.520 --> 00:11:16.800 must be in place in 2015. 00:11:16.800 --> 00:11:20.440 The current study period will take us from 2020 to 2025, 00:11:20.440 --> 00:11:22.240 and the cost of service and rate design study 00:11:22.240 --> 00:11:25.240 is basically meant to identify the revenue requirements 00:11:25.240 --> 00:11:26.920 of the water and wastewater utilities 00:11:26.920 --> 00:11:30.120 where we know what rate to charge to recover our cost. 00:11:30.120 --> 00:11:32.000 We are also using principles identified 00:11:32.000 --> 00:11:34.000 by the American Water Works Association, 00:11:34.000 --> 00:11:36.400 also referred to as AWWA. 00:11:36.400 --> 00:11:38.720 This organization is used by several utilities 00:11:38.720 --> 00:11:40.040 on the water and wastewater side 00:11:40.040 --> 00:11:41.880 when benchmarking their rates 00:11:41.880 --> 00:11:44.040 with similar municipalities around the area. 00:11:44.040 --> 00:11:49.440 So the cost of service process, 00:11:49.440 --> 00:11:51.840 this table writes it down to five simple steps. 00:11:51.840 --> 00:11:54.400 You can see step number one being at the bottom, 00:11:54.400 --> 00:11:55.920 step number five being at the top. 00:11:55.920 --> 00:11:59.380 So we are currently working on step number one through three. 00:11:59.380 --> 00:12:00.220 Here pretty soon, 00:12:00.220 --> 00:12:02.080 we will be working on the design and the rate structure. 00:12:02.080 --> 00:12:03.720 That's why we're here talking to you today 00:12:03.720 --> 00:12:05.520 about how the rates are structured 00:12:05.520 --> 00:12:07.640 and what our pricing objectives are. 00:12:07.640 --> 00:12:10.800 Step number five, we do anticipate finishing the study 00:12:10.800 --> 00:12:13.280 and bringing it back to the PUV and city council 00:12:13.280 --> 00:12:15.520 this upcoming summer, so summer of 2020. 00:12:15.520 --> 00:12:22.240 Now this diagram outlines the different elements 00:12:22.240 --> 00:12:24.560 that go into identifying the revenue requirements 00:12:24.560 --> 00:12:26.920 for the different customer classes. 00:12:26.920 --> 00:12:28.360 So starting on the left-hand side here, 00:12:28.360 --> 00:12:30.200 you can see the O&M budgets. 00:12:30.200 --> 00:12:31.520 So over the last couple of months, 00:12:31.520 --> 00:12:33.240 we have been setting our operating budgets 00:12:33.240 --> 00:12:35.120 that are approved by the PUV and city council 00:12:35.120 --> 00:12:37.980 to tell us to update the financial model. 00:12:37.980 --> 00:12:40.880 We have also sent them our capital budgets 00:12:40.880 --> 00:12:41.980 for a five-year period. 00:12:41.980 --> 00:12:43.520 We do budget every capital budget, 00:12:43.520 --> 00:12:46.320 water and waste water in a five-year period. 00:12:46.320 --> 00:12:48.840 Transfers to reserves, we do have that built in here also 00:12:48.840 --> 00:12:51.000 when identifying our revenue requirements. 00:12:51.000 --> 00:12:53.400 And then we did consider key factors such as inflation, 00:12:53.400 --> 00:12:55.280 interest rates, and finance in these projects. 00:12:55.280 --> 00:12:57.800 So as we get further out of that five-year period, 00:12:57.800 --> 00:12:59.840 the project cost typically increases. 00:12:59.840 --> 00:13:02.660 So we are building that into the financial model. 00:13:02.660 --> 00:13:04.920 Financial policies, we also are considering 00:13:04.920 --> 00:13:07.460 our debt coverage ratio and our financial reserves 00:13:07.460 --> 00:13:09.320 in water and waste water when looking at our rates 00:13:09.320 --> 00:13:10.560 that we're setting. 00:13:10.560 --> 00:13:12.520 Now I think the one important thing to point out too 00:13:12.520 --> 00:13:14.320 is that both water and waste water have revenue 00:13:14.320 --> 00:13:16.060 that are non-rate related. 00:13:16.060 --> 00:13:18.240 We are backing those revenues out of the utilities 00:13:18.240 --> 00:13:21.000 not to skew the numbers one way or the other. 00:13:21.000 --> 00:13:27.040 So the current pricing structure and pricing objectives 00:13:27.040 --> 00:13:28.600 and the main reason we want to talk to you today, 00:13:28.600 --> 00:13:31.040 so the current pricing model that we have in place 00:13:31.040 --> 00:13:33.360 has two main pricing objectives. 00:13:33.360 --> 00:13:35.280 The first will be in a tiered pricing structure 00:13:35.280 --> 00:13:37.520 to incentivize water conservation 00:13:37.520 --> 00:13:39.000 and the second one being establishment 00:13:39.000 --> 00:13:40.800 of cost of service based rates. 00:13:40.800 --> 00:13:42.520 So this working model that we are currently 00:13:42.520 --> 00:13:45.040 in the process of updating, we do use it every year 00:13:45.040 --> 00:13:47.280 to input our operating budgets into 00:13:47.280 --> 00:13:48.800 and then come up with a cost of service rate 00:13:48.800 --> 00:13:50.720 that we can use for wholesale customers 00:13:50.720 --> 00:13:53.360 and residential customers and so forth. 00:13:53.360 --> 00:13:55.320 I kind of want to give everybody a couple examples 00:13:55.320 --> 00:13:56.600 of the residential rate structure 00:13:56.600 --> 00:13:59.200 and how the water conservation comes into play 00:13:59.200 --> 00:14:01.040 when we set our residential rates. 00:14:01.040 --> 00:14:03.720 So you can see wastewater customers are here at the top. 00:14:03.720 --> 00:14:05.880 There are two components to a wastewater bill 00:14:05.880 --> 00:14:07.240 that are billed each month. 00:14:07.240 --> 00:14:08.720 The first one being a facility charge 00:14:08.720 --> 00:14:11.560 which is a fixed fee of $11 a month. 00:14:11.560 --> 00:14:13.160 You can see that here. 00:14:13.160 --> 00:14:14.640 And the second one being a volume charge 00:14:14.640 --> 00:14:16.920 of three per thousand gallons. 00:14:16.920 --> 00:14:20.080 I want to point out that wastewater is a non-metered service. 00:14:20.080 --> 00:14:21.640 So what we do to get the volume 00:14:21.640 --> 00:14:23.520 and the billable volume for wastewater customers 00:14:23.520 --> 00:14:25.880 is based off their water usage. 00:14:25.880 --> 00:14:29.160 We actually call that an average daily usage 00:14:29.160 --> 00:14:30.520 and that's established during the months 00:14:30.520 --> 00:14:33.360 of December, January, and February. 00:14:33.360 --> 00:14:35.800 If a household does not have that established usage 00:14:35.800 --> 00:14:38.560 so someone wants to move in a house in June, 00:14:38.560 --> 00:14:40.800 we would use a minimum of 5,400 gallons 00:14:40.800 --> 00:14:42.920 until that average is established. 00:14:42.920 --> 00:14:44.360 The average of 5,400 gallons, 00:14:44.360 --> 00:14:45.560 if you remember in the budgeting process, 00:14:45.560 --> 00:14:48.560 we actually decreased it from 6,000 to 5,400 00:14:48.560 --> 00:14:49.720 about a year and a half ago. 00:14:49.720 --> 00:14:53.160 So that's what the PDB and city council decided to do. 00:14:53.160 --> 00:14:54.840 Oh, water is similar to wastewater. 00:14:54.840 --> 00:14:57.680 We do have a facility charge that you can see here of $16. 00:14:57.680 --> 00:14:59.000 So a little bit more. 00:14:59.000 --> 00:15:00.680 This is for a three quarter inch meter. 00:15:00.680 --> 00:15:02.440 This is the most typical size meter 00:15:02.440 --> 00:15:04.920 for residential customers in the city. 00:15:04.920 --> 00:15:06.520 And the volume charge is a little bit different 00:15:06.520 --> 00:15:07.960 for water customers. 00:15:07.960 --> 00:15:10.520 We do break it into two different times of the year 00:15:10.520 --> 00:15:12.480 so you can see a winter rate and a summer rate. 00:15:12.480 --> 00:15:16.320 So as people start irrigating their yards more in the summer 00:15:16.320 --> 00:15:17.720 and the rate does increase a little bit 00:15:17.720 --> 00:15:19.800 as your water usage increases. 00:15:19.800 --> 00:15:22.600 So you can see a customer using zero to 15,000 gallons 00:15:22.600 --> 00:15:26.040 is being charged 415 per 1,000 gallon. 00:15:26.040 --> 00:15:30.400 Over 50,000 gallons, you can see is 1090 per 1,000 gallons. 00:15:30.400 --> 00:15:31.760 Also kind of want to show everybody 00:15:31.760 --> 00:15:35.320 where the majority of our customers are in these tiers. 00:15:35.320 --> 00:15:37.320 You can see the zero to 15,000 gallons 00:15:37.320 --> 00:15:39.520 is the majority of the customers. 00:15:39.520 --> 00:15:41.520 This is 2.7 billion gallons. 00:15:41.520 --> 00:15:44.200 I know this says 2.7 million, but it's in thousands. 00:15:44.200 --> 00:15:46.640 So 2.7 billion gallons of water 00:15:46.640 --> 00:15:49.240 in that first tier of zero to 15,000 gallons. 00:15:49.240 --> 00:15:52.680 It accounts for about 17.4 million in revenue. 00:15:52.680 --> 00:15:59.480 So the next step, so we are here talking to you today 00:15:59.480 --> 00:16:01.160 about where we are in the cost of service model. 00:16:01.160 --> 00:16:03.280 So like I said, we have been working with Retellis 00:16:03.280 --> 00:16:06.960 since the fall of 2019 to update this model. 00:16:06.960 --> 00:16:09.120 They will be providing us a financial model 00:16:09.120 --> 00:16:11.320 we can work with throughout the budgeting year 00:16:11.320 --> 00:16:13.400 as we come back to you with those budgets each year 00:16:13.400 --> 00:16:15.280 from the five year period. 00:16:15.280 --> 00:16:18.120 We do anticipate this to be done around the summer. 00:16:18.120 --> 00:16:20.640 So June, 2020 coming back to the Public Utility Board 00:16:20.640 --> 00:16:24.080 and City Council with that final product for your review 00:16:24.080 --> 00:16:25.520 and then final adoption of the rights 00:16:25.520 --> 00:16:27.720 will be in September along with the budget. 00:16:27.720 --> 00:16:32.640 And with that, that concludes the presentation. 00:16:32.640 --> 00:16:33.480 - Questions? 00:16:33.480 --> 00:16:39.480 - I was just curious as to what you folks 00:16:39.480 --> 00:16:42.800 tell people to do to conserve water. 00:16:42.800 --> 00:16:47.800 Are there publicized policies and suggestions? 00:16:47.800 --> 00:16:50.680 Anything tied in with the sustainability program, 00:16:50.680 --> 00:16:52.240 anything like that? 00:16:52.240 --> 00:16:53.800 - Let me ask Dr. Banks to look here 00:16:53.800 --> 00:16:55.680 and address that question really quick. 00:16:55.680 --> 00:17:03.960 - Good morning board members. 00:17:03.960 --> 00:17:06.520 Ken Banks, General Manager of Utilities. 00:17:06.520 --> 00:17:10.160 To address your question, the sustainability group 00:17:10.160 --> 00:17:11.680 has an energy audit program 00:17:11.680 --> 00:17:14.280 that also includes a water audit. 00:17:14.280 --> 00:17:16.240 And so typically when we go out, 00:17:16.240 --> 00:17:18.600 we'll perform both of those services 00:17:18.600 --> 00:17:20.640 for a requesting individual. 00:17:20.640 --> 00:17:23.600 And those, the water audit in particular 00:17:23.600 --> 00:17:27.280 will be focused on irrigation, indoor plumbing, 00:17:27.280 --> 00:17:30.600 all types of things to help people understand 00:17:30.600 --> 00:17:31.880 how they can conserve water 00:17:31.880 --> 00:17:33.560 to manage their systems better. 00:17:33.560 --> 00:17:39.520 We also have several types of messaging 00:17:39.520 --> 00:17:41.800 with regards to water conservation. 00:17:41.800 --> 00:17:44.880 We have a drought contingency plan as well 00:17:44.880 --> 00:17:46.520 that will enact certain policies 00:17:46.520 --> 00:17:48.840 if we end up getting into a situation 00:17:48.840 --> 00:17:51.960 where we have concerns about water usage. 00:17:51.960 --> 00:17:53.880 Typically we don't get there, 00:17:53.880 --> 00:17:56.880 but we certainly have those policies in place. 00:17:56.880 --> 00:17:59.320 So those are a few examples. 00:17:59.320 --> 00:18:02.000 We put on workshops on water conservation 00:18:02.000 --> 00:18:05.080 through the sustainability group and sustainable schools. 00:18:05.080 --> 00:18:07.360 So there's a lot of different elements. 00:18:07.360 --> 00:18:11.120 And just to point out too, as Nick went over, 00:18:11.120 --> 00:18:13.840 our entire pricing structure on the water side 00:18:13.840 --> 00:18:16.400 is geared towards conservation. 00:18:16.400 --> 00:18:20.000 So the more water you use within those tiers, 00:18:20.000 --> 00:18:23.640 the more amount you're going to pay on a per-gallon basis. 00:18:23.640 --> 00:18:24.720 - Thank you. - Sure. 00:18:24.720 --> 00:18:29.480 - Where did the direction come from 00:18:29.480 --> 00:18:34.360 to have this tiered pricing in terms of, 00:18:34.360 --> 00:18:38.760 it seems to me that the low end is extremely cheap 00:18:38.760 --> 00:18:43.080 if you could get less than 15,000 gallons of water, 00:18:43.080 --> 00:18:47.240 you've got a way of a deal at the other extreme 00:18:47.240 --> 00:18:52.160 over a penny a gallon seems pretty high. 00:18:52.160 --> 00:18:54.880 I also do business in the desert 00:18:54.880 --> 00:18:58.680 and our rates aren't quite to that level yet 00:18:58.680 --> 00:19:03.360 where water is truly scarce, right? 00:19:03.360 --> 00:19:05.040 Who gives you direction in terms of, 00:19:05.040 --> 00:19:08.000 'cause obviously it's a judgment call at that point 00:19:08.000 --> 00:19:10.400 to see how punitive you get at the high end 00:19:10.400 --> 00:19:13.160 and how subsidizing you get the low end. 00:19:13.160 --> 00:19:15.400 - And that's a conversation we'll have with the consultant 00:19:15.400 --> 00:19:17.720 when he comes back in the summer of 2020. 00:19:17.720 --> 00:19:18.960 So who gives us direction? 00:19:18.960 --> 00:19:21.200 It'll be the Public Utility Board and the City Council. 00:19:21.200 --> 00:19:23.200 So we work with the consultant to update 00:19:23.200 --> 00:19:24.800 that financial model, we bring it forward 00:19:24.800 --> 00:19:26.360 to the Public Utility Board and City Council 00:19:26.360 --> 00:19:27.600 with further direction. 00:19:27.600 --> 00:19:29.240 But these two pricing objectives 00:19:29.240 --> 00:19:31.240 are what that model is based off of. 00:19:31.240 --> 00:19:33.040 So I think the answer to your question would be, 00:19:33.040 --> 00:19:34.760 we get that direction from the Public Utility Board 00:19:34.760 --> 00:19:38.440 and City Council during the budgeting process annually 00:19:38.440 --> 00:19:40.080 and during the rate setting process annually. 00:19:40.080 --> 00:19:42.400 So as we kick off that season, 00:19:42.400 --> 00:19:44.720 May, June time period comes along 00:19:44.720 --> 00:19:46.800 and those are conversations we'll have with you. 00:19:46.800 --> 00:19:48.640 And we'll definitely talk about that. 00:19:48.640 --> 00:19:53.520 - Any other questions? 00:19:53.520 --> 00:19:56.680 All right, thank you. - Thank you. 00:19:56.680 --> 00:19:59.200 - And then the next item is receive a report 00:19:59.200 --> 00:20:01.200 and hold a discussion regarding the following 00:20:01.200 --> 00:20:04.360 with respect to green tree estates. 00:20:04.360 --> 00:20:07.040 And there's five alternatives I'm not gonna read them all. 00:20:10.880 --> 00:20:13.560 (clears throat) 00:20:13.560 --> 00:20:21.080 - And it is quite a caption sub. 00:20:21.080 --> 00:20:22.320 Members of the board, Ryan Adams, 00:20:22.320 --> 00:20:24.440 Deputy Director of Public Affairs. 00:20:24.440 --> 00:20:26.800 And this presentation is really to give the board 00:20:26.800 --> 00:20:30.600 an update on the status of the water provision 00:20:30.600 --> 00:20:33.600 at green tree estates and to walk through 00:20:33.600 --> 00:20:35.800 some of the recent events and the direction 00:20:35.800 --> 00:20:37.480 the council provided at the most recent meeting 00:20:37.480 --> 00:20:40.240 on February 4th, and then also to answer any questions 00:20:40.240 --> 00:20:41.600 that the board might have. 00:20:41.600 --> 00:20:46.800 So this was back on February 4th. 00:20:46.800 --> 00:20:48.920 The staff provided council update 00:20:48.920 --> 00:20:50.480 on the status of green tree estates. 00:20:50.480 --> 00:20:53.640 And as a very brief overview, 00:20:53.640 --> 00:20:56.000 the residents of green tree estates 00:20:56.000 --> 00:21:00.400 were served by a private water supplier from a well. 00:21:00.400 --> 00:21:03.040 That water supplier ceased that water supply. 00:21:03.040 --> 00:21:04.560 They were left without water. 00:21:04.560 --> 00:21:05.560 Over the course of the fall, 00:21:05.560 --> 00:21:08.000 the city met with the numerous times 00:21:08.000 --> 00:21:12.680 and made a determination in November to declare a disaster 00:21:12.680 --> 00:21:16.320 so that the city could provide water on a temporary basis, 00:21:16.320 --> 00:21:18.720 three times per week, non-potable water, 00:21:18.720 --> 00:21:20.720 and then to make potable or drinkable water 00:21:20.720 --> 00:21:22.400 available to the residents. 00:21:22.400 --> 00:21:26.520 So on February 4th, staff updated the council 00:21:26.520 --> 00:21:31.360 on the work session that they held on December 10th. 00:21:31.360 --> 00:21:33.560 The results of that and the progress staff 00:21:33.560 --> 00:21:37.400 had made since then, status update was provided. 00:21:37.400 --> 00:21:39.000 We also described to council 00:21:39.000 --> 00:21:41.360 what would happen beginning February 13th 00:21:41.360 --> 00:21:43.720 once the original declaration of disaster 00:21:43.720 --> 00:21:45.640 was set to expire. 00:21:45.640 --> 00:21:47.320 We also explained the steps for residents 00:21:47.320 --> 00:21:48.640 connected to the city water system 00:21:48.640 --> 00:21:50.600 and just other issues for the council to consider 00:21:50.600 --> 00:21:52.160 at that meeting, which they did. 00:21:52.160 --> 00:21:58.160 So as a summary, on December 10th, council directed staff 00:21:58.160 --> 00:22:00.440 that they would extend the declaration of disaster 00:22:00.440 --> 00:22:03.320 originally slated to expire on February 12th 00:22:03.320 --> 00:22:04.880 for an additional 100 days, 00:22:04.880 --> 00:22:07.320 and that would bring it to May 22nd. 00:22:07.320 --> 00:22:09.640 That's the last day of that declaration. 00:22:09.640 --> 00:22:12.320 They also directed staff to begin billing residents 00:22:12.320 --> 00:22:14.840 beginning February 13th, 00:22:14.840 --> 00:22:18.560 or day one of that additional 100-day extension. 00:22:18.560 --> 00:22:21.880 They asked staff to offer voluntary courtesy inspections 00:22:21.880 --> 00:22:23.720 and to provide code compliance information. 00:22:23.720 --> 00:22:25.720 So essentially, let residents know 00:22:25.720 --> 00:22:28.120 that we're happy to come inspect your house 00:22:28.120 --> 00:22:29.880 the way we would if we were going to connect 00:22:29.880 --> 00:22:31.240 to the water system, 00:22:31.240 --> 00:22:33.520 and to provide any other code compliance information 00:22:33.520 --> 00:22:34.680 that they needed. 00:22:34.680 --> 00:22:37.800 And that we would also address life, safety, 00:22:37.800 --> 00:22:40.120 and health issues with non-occupied structures. 00:22:40.120 --> 00:22:41.640 And if you go out to Green Tree Estates, 00:22:41.640 --> 00:22:44.560 there are a number of structures on various properties. 00:22:44.560 --> 00:22:47.040 They are quite obviously non-occupied. 00:22:47.040 --> 00:22:50.520 They are very substandard. 00:22:50.520 --> 00:22:54.080 And so staff began the process of enforcement on those 00:22:54.080 --> 00:22:57.800 'cause they are clear hazards to the public, 00:22:57.800 --> 00:23:02.240 and what we would term an attractive nuisance. 00:23:02.240 --> 00:23:07.400 Also, at that December 10th meeting, 00:23:07.400 --> 00:23:09.560 the city requested that residents and property owners 00:23:09.560 --> 00:23:13.160 of Green Tree Estates assist in providing some information, 00:23:13.160 --> 00:23:15.480 including the confirmation of ownership 00:23:15.480 --> 00:23:18.040 of all Green Tree Estates roads and easements. 00:23:18.040 --> 00:23:20.800 And I will note that they did provide 00:23:20.800 --> 00:23:23.320 what they are going to consider that confirmation 00:23:23.320 --> 00:23:25.520 just prior to this meeting, so there is an X there, 00:23:25.520 --> 00:23:29.120 but pay no attention to that X. 00:23:29.120 --> 00:23:31.640 To confirm ownership of all Green Tree Estates lots, 00:23:31.640 --> 00:23:34.480 we are in the process of continuing to do that. 00:23:34.480 --> 00:23:36.680 Confirm which lots are owner-occupied. 00:23:36.680 --> 00:23:40.560 This is important as we will have to work with all owners 00:23:40.560 --> 00:23:44.000 to actually connect them to the city water system, 00:23:44.000 --> 00:23:47.000 but we cannot work with the residents if they rent. 00:23:47.000 --> 00:23:48.760 Confirm which property owners are interested 00:23:48.760 --> 00:23:51.000 in connecting to a water meter 00:23:51.000 --> 00:23:53.080 at the Green Tree Estates boundary. 00:23:53.080 --> 00:23:55.720 Schedule courtesy inspections and to begin paying for water 00:23:55.720 --> 00:23:57.560 on February 13th. 00:23:57.560 --> 00:23:59.560 And just as a little bit of a background, 00:23:59.560 --> 00:24:02.720 the solution that staff devised to provide permanent water 00:24:02.720 --> 00:24:04.120 to the residents of Green Tree Estates 00:24:04.120 --> 00:24:07.560 is to place a meter at the neighborhood boundary. 00:24:07.560 --> 00:24:09.440 All the property within the neighborhood is private, 00:24:09.440 --> 00:24:11.240 there are no public rights away, 00:24:11.240 --> 00:24:14.200 and each individual property owner will be charged 00:24:14.200 --> 00:24:17.120 to run a service line from the residents 00:24:17.120 --> 00:24:18.880 all the way to the meter. 00:24:18.880 --> 00:24:22.520 It could be 40 feet, it could be 200 feet, 00:24:22.520 --> 00:24:24.920 but it would be essentially a long service line. 00:24:24.920 --> 00:24:32.000 Staff did engage the residents in two small group meetings 00:24:32.000 --> 00:24:33.240 between the December 10th 00:24:33.240 --> 00:24:35.320 and the February 4th council meetings. 00:24:35.320 --> 00:24:38.480 One on December 19th, where we essentially discussed 00:24:38.480 --> 00:24:40.320 the courtesy inspections and the results 00:24:40.320 --> 00:24:41.640 from that December 10th meeting. 00:24:41.640 --> 00:24:43.160 And we also met with them on February 3rd, 00:24:43.160 --> 00:24:45.920 just before that February 4th council work session, 00:24:45.920 --> 00:24:49.040 where we previewed what we would discuss with council, 00:24:49.040 --> 00:24:52.960 also reviewed how we would prepay for water services, 00:24:52.960 --> 00:24:55.560 so residents can pay ahead of time, 00:24:55.560 --> 00:24:58.440 it's a set amount of water they receive, a set cost. 00:24:58.440 --> 00:25:01.760 This way it does not obligate them to create an account 00:25:01.760 --> 00:25:03.640 and go through a credit check. 00:25:03.640 --> 00:25:05.640 And then we also answered any questions that they had, 00:25:05.640 --> 00:25:07.840 and they had some related to inspections 00:25:07.840 --> 00:25:08.960 and some other items. 00:25:08.960 --> 00:25:14.480 So the current status, the city has expended, 00:25:14.480 --> 00:25:17.920 under the declaration of disaster, just over $30,000 00:25:17.920 --> 00:25:20.760 to provide water to Greenery estates. 00:25:20.760 --> 00:25:23.400 This does include some one-time purchases of gallons, 00:25:23.400 --> 00:25:25.840 or pardon me, 275 gallon tanks, 00:25:25.840 --> 00:25:28.480 and also some improvements to the roads there, 00:25:28.480 --> 00:25:30.760 so that we could bring a heavy water truck 00:25:30.760 --> 00:25:32.320 to deliver that water. 00:25:32.320 --> 00:25:36.240 It does not include staff time for salaried staff. 00:25:36.240 --> 00:25:40.000 So we capture the hourly wages of the workers who go, 00:25:40.000 --> 00:25:41.480 the employees who go and deliver that water, 00:25:41.480 --> 00:25:45.360 but any other staff time by, say, department directors, 00:25:45.360 --> 00:25:47.680 that's not captured in that number. 00:25:47.680 --> 00:25:50.880 The disaster declaration was on the agenda on February 4th. 00:25:50.880 --> 00:25:52.280 It was approved by council, 00:25:52.280 --> 00:25:54.680 so it has been extended through May 22nd. 00:25:54.680 --> 00:25:58.480 The residents are gonna be receiving bills 00:25:58.480 --> 00:25:59.320 for water service. 00:25:59.320 --> 00:26:02.000 They started receiving those last week. 00:26:02.000 --> 00:26:05.480 The city, again, is addressing those non-occupied, 00:26:05.480 --> 00:26:07.560 attractive nuisances. 00:26:07.560 --> 00:26:09.480 We have not received, again, all the information 00:26:09.480 --> 00:26:12.680 that was requested by council, although we have received some 00:26:12.680 --> 00:26:14.360 and we are continuing to work with the residents 00:26:14.360 --> 00:26:15.480 to get the rest. 00:26:15.480 --> 00:26:16.600 - Can I ask a question? 00:26:16.600 --> 00:26:17.440 - Yes, sir. 00:26:17.440 --> 00:26:19.480 - What is an attractive nuisance? 00:26:19.480 --> 00:26:24.360 - So I'm not sure if that is a well-defined term, 00:26:24.360 --> 00:26:28.080 but it's essentially something used to denote a structure 00:26:28.080 --> 00:26:31.640 that is substandard, so it is a nuisance, 00:26:31.640 --> 00:26:36.640 but it is open so that humans on down to, 00:26:36.640 --> 00:26:42.080 say, small animals can go in there to seek cover from, 00:26:42.080 --> 00:26:43.400 say, the elements of the weather. 00:26:43.400 --> 00:26:48.400 So you then have either a disease problem 00:26:48.400 --> 00:26:51.520 with your small animals or a public health hazard, 00:26:51.520 --> 00:26:54.680 safety hazard, if people live in these 00:26:54.680 --> 00:26:56.280 substandard structures. 00:26:56.280 --> 00:26:58.040 One strong windstorm, they could fall over 00:26:58.040 --> 00:26:59.480 and crush who's ever inside. 00:26:59.480 --> 00:27:03.160 So attractive nuisance is a kind of a catch-all term 00:27:03.160 --> 00:27:05.400 because they all are different in their own ways, 00:27:05.400 --> 00:27:07.720 but essentially it's a substandard structure 00:27:07.720 --> 00:27:09.440 that someone can access. 00:27:12.000 --> 00:27:14.040 - Why don't they just call it that, then? 00:27:14.040 --> 00:27:17.400 - To be perfectly blunt with you, 00:27:17.400 --> 00:27:18.960 I may have used attractive nuisance 00:27:18.960 --> 00:27:20.640 to save space on the PowerPoint. 00:27:20.640 --> 00:27:23.480 - Okay, thanks. 00:27:23.480 --> 00:27:24.320 - You got it. 00:27:24.320 --> 00:27:31.920 And at the time, the city had not received any requests 00:27:31.920 --> 00:27:33.960 for voluntary inspections. 00:27:33.960 --> 00:27:38.320 The residents did let us know that they have reached out 00:27:38.320 --> 00:27:40.760 and are working with a third-party inspector 00:27:40.760 --> 00:27:43.360 to provide them guidance on what improvements 00:27:43.360 --> 00:27:45.240 that they may need to make to the residences 00:27:45.240 --> 00:27:46.200 to connect to city water. 00:27:46.200 --> 00:27:49.080 Now, the city will not accept those, 00:27:49.080 --> 00:27:52.240 but it gives them a head start, 00:27:52.240 --> 00:27:54.120 and the city will come when they want to connect 00:27:54.120 --> 00:27:55.760 and do our own inspection, 00:27:55.760 --> 00:27:57.520 as required by state and local law. 00:27:57.520 --> 00:28:01.920 So beginning February 13th, 00:28:01.920 --> 00:28:04.160 residents will be billed for water. 00:28:04.160 --> 00:28:05.480 Again, it's pre-billed. 00:28:05.480 --> 00:28:07.840 If they do not pay by the due date, 00:28:07.840 --> 00:28:11.920 they do not receive water delivered to their large tanks. 00:28:11.920 --> 00:28:14.200 The residents, pardon me, 00:28:14.200 --> 00:28:15.760 paying late will receive service 00:28:15.760 --> 00:28:18.040 on the next scheduled delivery dates. 00:28:18.040 --> 00:28:21.000 The cost per week, although they will be billed monthly, 00:28:21.000 --> 00:28:23.400 the cost per week is $9.43. 00:28:23.400 --> 00:28:25.960 If the household has two large containers, 00:28:25.960 --> 00:28:27.920 just over $5 if they have one, 00:28:27.920 --> 00:28:30.320 and these are the prevailing water rates of the city. 00:28:30.320 --> 00:28:32.080 So they pay the same water rate 00:28:32.080 --> 00:28:34.200 that every other Denver customer does. 00:28:37.680 --> 00:28:39.720 So this is a very scaled-down, 00:28:39.720 --> 00:28:41.400 simplified version of the process, 00:28:41.400 --> 00:28:43.040 but for the residents, pardon me, 00:28:43.040 --> 00:28:44.600 the property owners of Green Tree States 00:28:44.600 --> 00:28:46.560 to connect to the water system, 00:28:46.560 --> 00:28:50.920 they would have to request and pass an initial inspection 00:28:50.920 --> 00:28:53.320 for us to determine if they can be connected, 00:28:53.320 --> 00:28:56.280 if it poses no risk to the system, 00:28:56.280 --> 00:28:58.760 a customer service inspection. 00:28:58.760 --> 00:29:00.040 They would then contact the city 00:29:00.040 --> 00:29:01.280 to request that water meter. 00:29:01.280 --> 00:29:03.880 They would have to pay all service meter and tap fees, 00:29:03.880 --> 00:29:05.320 just like any other resident 00:29:05.320 --> 00:29:06.920 who makes that similar request. 00:29:08.000 --> 00:29:11.880 They would have to receive a permit for the work, 00:29:11.880 --> 00:29:14.480 have a plumber perform the work 00:29:14.480 --> 00:29:16.240 for those areas where a plumber is required, 00:29:16.240 --> 00:29:17.680 a licensed plumber. 00:29:17.680 --> 00:29:21.560 It must be inspected and must pass inspection by the city. 00:29:21.560 --> 00:29:23.400 And then they would set up a billing account, 00:29:23.400 --> 00:29:24.960 just like any other residents, 00:29:24.960 --> 00:29:26.440 so that they would be billed in arrears. 00:29:26.440 --> 00:29:27.840 You use this much for a month, 00:29:27.840 --> 00:29:28.880 you get your bill the next month, 00:29:28.880 --> 00:29:31.400 and you pay whatever it is you used. 00:29:31.400 --> 00:29:37.640 So on May 23rd, 2020, currently, 00:29:37.640 --> 00:29:40.400 the declaration of disaster will expire. 00:29:40.400 --> 00:29:42.040 The city's water service, 00:29:42.040 --> 00:29:44.480 the temporary water service will cease, 00:29:44.480 --> 00:29:46.200 and the city will lose its ability 00:29:46.200 --> 00:29:48.880 to lawfully access the properties to deliver water. 00:29:48.880 --> 00:29:53.480 The resident representatives of Green Tree States 00:29:53.480 --> 00:29:56.200 did request to council that they would like to see 00:29:56.200 --> 00:29:58.360 the declaration of disaster extended. 00:29:58.360 --> 00:30:02.440 The date they gave was to May of 2021. 00:30:02.440 --> 00:30:05.400 Council received that request, 00:30:05.400 --> 00:30:08.440 but did not discuss it and did not act on it at that meeting. 00:30:08.440 --> 00:30:16.720 We also presented several issues to consider. 00:30:16.720 --> 00:30:17.720 What happens, of course, 00:30:17.720 --> 00:30:19.200 is residents do not pay for water. 00:30:19.200 --> 00:30:20.640 As I previously mentioned, 00:30:20.640 --> 00:30:23.800 they will receive no temporary water service. 00:30:23.800 --> 00:30:25.960 If they do not receive any courtesy inspections, 00:30:25.960 --> 00:30:28.920 they do so, again, at their own risk, 00:30:28.920 --> 00:30:30.920 because the city, when we do our initial inspection, 00:30:30.920 --> 00:30:33.840 may find something that their third-party inspector 00:30:33.840 --> 00:30:36.320 did not find that they would have to then comply with 00:30:36.320 --> 00:30:38.720 in order to connect with the city water system. 00:30:38.720 --> 00:30:41.760 What happens if they do not make code improvements 00:30:41.760 --> 00:30:42.600 as required? 00:30:42.600 --> 00:30:45.520 Simply, they cannot connect to city water. 00:30:45.520 --> 00:30:46.840 And what happens if property owners 00:30:46.840 --> 00:30:48.200 do not initiate private connections 00:30:48.200 --> 00:30:50.320 to the city water system? 00:30:50.320 --> 00:30:53.000 At all, we would then have to enforce our code. 00:30:53.000 --> 00:30:58.040 And what that means is we would have to view them 00:30:58.040 --> 00:31:01.080 as potentially being a substandard structure 00:31:01.080 --> 00:31:04.760 for lack of running water to the facility. 00:31:04.760 --> 00:31:08.320 And we are bringing this issue 00:31:08.320 --> 00:31:11.760 and a couple others back to the council next week 00:31:11.760 --> 00:31:14.360 to give them clarification on it. 00:31:14.360 --> 00:31:17.120 So, the final issue to consider was, 00:31:17.120 --> 00:31:19.520 what happens if less than all 14 property owners 00:31:19.520 --> 00:31:21.040 initiate private connections? 00:31:21.040 --> 00:31:24.760 So, we had provided some numbers on December 10th. 00:31:24.760 --> 00:31:26.280 They were estimates of what the cost would be 00:31:26.280 --> 00:31:27.800 to connect to the city. 00:31:27.800 --> 00:31:29.760 In addition to the meter fees, 00:31:29.760 --> 00:31:31.680 which are standard across the city, 00:31:31.680 --> 00:31:33.520 the line that they would receive water from 00:31:33.520 --> 00:31:35.720 does not extend all the way to Green Tree Estates. 00:31:35.720 --> 00:31:38.000 There's a small gap there. 00:31:38.000 --> 00:31:40.920 Just like any other property owner or developer, 00:31:40.920 --> 00:31:42.760 they would have to, once connecting, 00:31:42.760 --> 00:31:45.040 would have to cover the cost of extending that line 00:31:45.040 --> 00:31:47.240 from its current location 00:31:47.240 --> 00:31:49.480 to the Green Tree Estates boundary. 00:31:49.480 --> 00:31:54.320 And there is a cost to that that all the new connections 00:31:54.320 --> 00:31:56.160 would be required to share. 00:31:56.160 --> 00:31:59.280 When we met with council last week, 00:31:59.280 --> 00:32:03.640 we presented them this table, 00:32:03.640 --> 00:32:07.400 which showed the cost based on the number of meters 00:32:07.400 --> 00:32:10.120 that were requested from the residents. 00:32:10.120 --> 00:32:11.680 At council's request, 00:32:11.680 --> 00:32:14.640 staff is currently developing several options 00:32:14.640 --> 00:32:17.320 to bring back to council based on pro rata agreements 00:32:17.320 --> 00:32:19.920 to see if we can create a scenario 00:32:19.920 --> 00:32:22.880 where a single or a group of residents 00:32:22.880 --> 00:32:27.000 would not have to pay all these costs upfront, 00:32:27.000 --> 00:32:28.840 particularly if other residents would come in 00:32:28.840 --> 00:32:31.400 afterwards to connect to the city. 00:32:31.400 --> 00:32:34.920 Council requested that come back to them on February 18th. 00:32:34.920 --> 00:32:40.520 - Quick question while we're back on the table. 00:32:40.520 --> 00:32:45.480 Obviously the cost of extending the line is 92.04. 00:32:45.480 --> 00:32:47.200 - That's the measurement, sir. 00:32:47.200 --> 00:32:48.040 - Getting back. 00:32:48.040 --> 00:32:53.520 How much of the tap meter and impact fee 00:32:53.520 --> 00:32:55.120 is the impact fee per se, 00:32:55.120 --> 00:32:57.240 and how much of it is the cost of a tap 00:32:57.240 --> 00:32:58.920 and a meter and installation? 00:32:58.920 --> 00:33:01.400 - I'm gonna refer to Dr. Banks if I can. 00:33:01.400 --> 00:33:02.240 - Testament's fine. 00:33:02.240 --> 00:33:10.720 - I believe that the impact fee on that was around $5,900, 00:33:10.720 --> 00:33:13.840 but I'd need to go back and check that. 00:33:13.840 --> 00:33:17.040 - So it's about $1,000 of residents to get 'em hooked up, 00:33:17.040 --> 00:33:20.080 and the rest is impact on the larger fixed cost structure. 00:33:20.080 --> 00:33:21.440 - That's correct, but keep in mind, 00:33:21.440 --> 00:33:23.960 you're also talking about a meter set fee, 00:33:23.960 --> 00:33:27.160 the meter itself, some valve work. 00:33:27.160 --> 00:33:28.000 That kind of stuff. 00:33:28.000 --> 00:33:31.280 So that's all rolled into that at 69.38. 00:33:31.280 --> 00:33:34.000 - Okay, so you've got 1,000 for the meter setter 00:33:34.000 --> 00:33:38.560 and meter and that, and you've got 5,900 for the impacts 00:33:38.560 --> 00:33:41.360 to the larger system and the fixed cost. 00:33:41.360 --> 00:33:42.200 - That's correct. 00:33:42.200 --> 00:33:49.920 - And this is just a map of all the residences 00:33:49.920 --> 00:33:52.360 who we do provide temporary water to. 00:33:52.360 --> 00:33:54.480 Most of them are in the middle 00:33:54.480 --> 00:33:57.320 or towards the east side of the property. 00:33:57.320 --> 00:34:00.400 If we did connect, and can everybody see my mouse right there? 00:34:00.400 --> 00:34:01.240 Excellent. 00:34:01.240 --> 00:34:05.200 The meters would be set on the eastern edge, 00:34:05.200 --> 00:34:09.120 and then service lines would then run, preferably, 00:34:09.120 --> 00:34:11.920 in the jointly owned roads 00:34:11.920 --> 00:34:13.920 and make their way to each residence. 00:34:13.920 --> 00:34:16.720 Although, this is an area where the city only 00:34:16.720 --> 00:34:22.240 permits and inspects, so we would not make decisions 00:34:22.240 --> 00:34:24.480 beyond that regarding placement, 00:34:24.480 --> 00:34:29.040 other than what is required from state law or local law. 00:34:29.040 --> 00:34:31.680 So we will not take an active part in the planning 00:34:31.680 --> 00:34:32.640 where those lines goes. 00:34:32.640 --> 00:34:34.720 We will simply permit and inspect 00:34:34.720 --> 00:34:36.280 to make sure that they comply. 00:34:36.280 --> 00:34:40.400 - I have a question about the history of this development. 00:34:40.400 --> 00:34:41.240 - I'll do my best. 00:34:41.240 --> 00:34:42.320 - Okay. 00:34:42.320 --> 00:34:47.240 Green Tree Estates was, before it was an entity as such, 00:34:47.240 --> 00:34:49.560 was it within the city limits? 00:34:51.560 --> 00:34:53.920 - It was annexed in 2013. 00:34:53.920 --> 00:34:54.760 - 2013. 00:34:54.760 --> 00:34:55.600 - Exactly. 00:34:55.600 --> 00:34:58.320 But it existed quite a few decades prior to that, 00:34:58.320 --> 00:34:59.760 just out in the county. 00:34:59.760 --> 00:35:05.640 - When it was annexed, were the lots, 00:35:05.640 --> 00:35:08.200 do you know, were the lots divided up? 00:35:08.200 --> 00:35:09.200 - Yes, they were. 00:35:09.200 --> 00:35:11.200 They had been subdivided at that point. 00:35:11.200 --> 00:35:14.680 - Okay. 00:35:14.680 --> 00:35:15.520 - They had already been subdivided. 00:35:15.520 --> 00:35:18.000 - They had already been subdivided at that point. 00:35:18.000 --> 00:35:19.640 - And when it was annexed, 00:35:19.640 --> 00:35:21.720 the city part of the water supply 00:35:21.720 --> 00:35:26.720 was still not run up to the boundary of that annexed land, 00:35:26.720 --> 00:35:27.960 correct? 00:35:27.960 --> 00:35:28.800 - Correct. 00:35:28.800 --> 00:35:32.680 So we set out a plan, the service plan for the annexation, 00:35:32.680 --> 00:35:35.520 prescribed a process by which the owner 00:35:35.520 --> 00:35:38.200 of the Green Tree Estates water system at the time 00:35:38.200 --> 00:35:39.440 could connect to the city water 00:35:39.440 --> 00:35:40.760 and then convey that water 00:35:40.760 --> 00:35:43.480 to the residents of Green Tree Estates. 00:35:43.480 --> 00:35:47.840 The cost of that was gonna be borne on that water supplier, 00:35:47.840 --> 00:35:50.280 the person who owned the well. 00:35:50.280 --> 00:35:54.600 So the process was laid out, the costs were defined. 00:35:54.600 --> 00:35:57.880 However, the water supplier did not choose 00:35:57.880 --> 00:35:59.440 to connect to the city water 00:35:59.440 --> 00:36:02.520 and opted to continue to provide residents of water 00:36:02.520 --> 00:36:05.200 from the well that he owned 00:36:05.200 --> 00:36:09.120 until he decided to cease that provision in November. 00:36:09.120 --> 00:36:13.680 So we gave them the pathway 00:36:14.920 --> 00:36:19.920 and then waited for him to act on it. 00:36:19.920 --> 00:36:22.880 - The lots that are not marked, 00:36:22.880 --> 00:36:25.480 are those predominantly owned by the same person 00:36:25.480 --> 00:36:29.400 that owns the water well and perhaps subdivided? 00:36:29.400 --> 00:36:32.520 - For the most part, for the most part, yes. 00:36:32.520 --> 00:36:34.680 - And did he or she have to be annexed 00:36:34.680 --> 00:36:37.720 or did the city take an active step 00:36:37.720 --> 00:36:40.720 to annex his land into the city? 00:36:40.720 --> 00:36:42.640 - I'm gonna again defer to Dr. Banks on that one. 00:36:42.640 --> 00:36:46.440 He is a lot more familiar with those that were in the sign. 00:36:46.440 --> 00:36:48.000 - I was hoping I'd have another chance 00:36:48.000 --> 00:36:51.480 because the impact fee is $5,352. 00:36:51.480 --> 00:36:56.640 So when a property like this is annexed 00:36:56.640 --> 00:36:59.080 and it exists in the county, 00:36:59.080 --> 00:37:04.000 the county is required to establish a three-person committee 00:37:04.000 --> 00:37:08.920 to represent the residents that are in the annexed areas. 00:37:08.920 --> 00:37:10.880 This particular one was an interesting one 00:37:10.880 --> 00:37:14.240 because there was a private distribution system 00:37:14.240 --> 00:37:17.280 in place already that was providing service 00:37:17.280 --> 00:37:19.360 to all of these lots. 00:37:19.360 --> 00:37:22.120 And because we could not take over 00:37:22.120 --> 00:37:23.800 the private distribution system, 00:37:23.800 --> 00:37:26.320 what was contemplated was an extension of service 00:37:26.320 --> 00:37:31.200 to actually provide city water 00:37:31.200 --> 00:37:32.920 to the above ground storage tank 00:37:32.920 --> 00:37:35.720 that was being used with the well. 00:37:35.720 --> 00:37:37.240 And then the above ground storage tank 00:37:37.240 --> 00:37:38.360 would actually distribute it 00:37:38.360 --> 00:37:40.280 to the rest of the residents. 00:37:40.280 --> 00:37:45.280 And so in terms of the representation 00:37:45.280 --> 00:37:49.240 in the annexation that's done by the committee, 00:37:49.240 --> 00:37:53.040 there is always an opportunity for someone to come in 00:37:53.040 --> 00:37:57.400 and ask to not be annexed in as a part of that process. 00:37:57.400 --> 00:38:00.080 That didn't happen in this particular case. 00:38:00.080 --> 00:38:03.200 - I guess my question was, did the city come say, 00:38:03.200 --> 00:38:07.080 we're going to take you in and establish that committee, 00:38:07.080 --> 00:38:11.080 or did the landowners say, come take us into the city? 00:38:11.080 --> 00:38:12.920 Who initiated the annexation? 00:38:12.920 --> 00:38:17.000 - The annexation encompassed a much larger area 00:38:17.000 --> 00:38:18.920 than this particular place, 00:38:18.920 --> 00:38:22.240 and it was instigated by the city. 00:38:22.240 --> 00:38:24.640 - Okay, so the city said, we're going to come 00:38:24.640 --> 00:38:26.440 take you into the city. - That's correct. 00:38:26.440 --> 00:38:28.160 - As opposed to the landowners saying, 00:38:28.160 --> 00:38:29.480 please come take us. - That's correct. 00:38:29.480 --> 00:38:30.320 - Thanks. 00:38:30.320 --> 00:38:32.600 - Could I ask one question? 00:38:32.600 --> 00:38:33.440 - Yes, sir. 00:38:33.440 --> 00:38:35.000 - Are there any other communities 00:38:36.400 --> 00:38:39.320 where this same situation could happen? 00:38:39.320 --> 00:38:42.160 - So there are other communities 00:38:42.160 --> 00:38:44.680 that are served by private wells. 00:38:44.680 --> 00:38:47.760 Either they're small enough to not be regulated by the state 00:38:47.760 --> 00:38:51.080 or they're large enough that they do have a state regulation 00:38:51.080 --> 00:38:53.400 and a public large supply designation. 00:38:53.400 --> 00:38:58.120 At this point in time, staff is aware of them. 00:38:58.120 --> 00:39:03.120 We don't think any would immediately replicate this, 00:39:03.120 --> 00:39:06.040 but it could always happen in the future 00:39:06.040 --> 00:39:07.560 with anyone or any group 00:39:07.560 --> 00:39:09.000 that are being served by a private well 00:39:09.000 --> 00:39:14.000 for that private well supplier to cease that supply, 00:39:14.000 --> 00:39:17.720 and residents would be required 00:39:17.720 --> 00:39:20.240 to connect to some other water source, 00:39:20.240 --> 00:39:21.840 whether it be their own well, 00:39:21.840 --> 00:39:23.040 if their wells are large enough 00:39:23.040 --> 00:39:24.560 and they can meet all the requirements, 00:39:24.560 --> 00:39:25.840 or to connect to the city. 00:39:25.840 --> 00:39:32.040 - And the owner of this water company really is, 00:39:34.760 --> 00:39:38.760 does he or she have any responsibilities at all now? 00:39:38.760 --> 00:39:41.000 Are they off the hook as well? 00:39:41.000 --> 00:39:42.360 - So what we had determined, 00:39:42.360 --> 00:39:47.360 and we did a lot of asking and questions, 00:39:47.360 --> 00:39:49.920 a lot of questions to the state, 00:39:49.920 --> 00:39:53.200 particularly the TCEQ and PUC, Public Utility Commission, 00:39:53.200 --> 00:39:55.840 and what they had determined 00:39:55.840 --> 00:40:00.840 was that it was not large enough to warrant their regulation. 00:40:01.720 --> 00:40:06.000 So they saw it as just a private relationship 00:40:06.000 --> 00:40:09.400 between a supplier and a purchaser. 00:40:09.400 --> 00:40:12.880 The city, however, armed with evidence, 00:40:12.880 --> 00:40:14.880 presented a case to the contrary 00:40:14.880 --> 00:40:15.960 that it should have been, 00:40:15.960 --> 00:40:17.120 and it should have been for a while, 00:40:17.120 --> 00:40:18.880 regulated by the state. 00:40:18.880 --> 00:40:22.240 We submitted that to the PUC and the TCEQ. 00:40:22.240 --> 00:40:25.280 We were told we would receive an official response. 00:40:25.280 --> 00:40:27.240 Based on that information submitted, 00:40:27.240 --> 00:40:30.560 to date we have not received a response. 00:40:30.560 --> 00:40:31.800 - And how long has it been 00:40:31.800 --> 00:40:36.120 since we've supplied that information approximately? 00:40:36.120 --> 00:40:37.760 - At least two months. 00:40:37.760 --> 00:40:41.840 - And what's the determining factor? 00:40:41.840 --> 00:40:44.480 Number of households, 25? 00:40:44.480 --> 00:40:47.360 - Number of households and/or number of connections 00:40:47.360 --> 00:40:48.600 and number of quotients served, 00:40:48.600 --> 00:40:51.120 depending on which entity you're working with. 00:40:51.120 --> 00:40:52.120 - Okay, thanks. 00:40:52.120 --> 00:40:55.320 - Thanks. 00:40:55.320 --> 00:40:56.560 - You got it. 00:40:56.560 --> 00:40:59.440 - I have one comment I'd like to make. 00:40:59.440 --> 00:41:01.440 I had a little time yesterday morning in the group, 00:41:01.440 --> 00:41:03.400 I saw what it is, 00:41:03.400 --> 00:41:07.280 and the code violations that are in place in some, 00:41:07.280 --> 00:41:09.320 but not all, of these properties 00:41:09.320 --> 00:41:11.880 are at a level that I would call obscene. 00:41:11.880 --> 00:41:16.160 They are extremely bad. 00:41:16.160 --> 00:41:22.000 And I would hope that the city 00:41:22.000 --> 00:41:24.240 and the city manager's office 00:41:24.240 --> 00:41:27.400 would have, since it's been since November, 00:41:27.400 --> 00:41:31.600 been aware of those and have coded enforcement actions 00:41:31.600 --> 00:41:32.880 well underway. 00:41:32.880 --> 00:41:36.000 It's as extreme as I've ever seen. 00:41:36.000 --> 00:41:38.360 I've been in a mold on markets, so I, 00:41:38.360 --> 00:41:41.640 these are really, really awful 00:41:41.640 --> 00:41:44.240 and it needs some action taken on that. 00:41:44.240 --> 00:41:47.280 I realize we have public utilities working on that, 00:41:47.280 --> 00:41:49.680 but it looks to me, my observation is, 00:41:49.680 --> 00:41:52.520 there are some single family residences 00:41:52.520 --> 00:41:55.080 that are in need of our help, 00:41:55.080 --> 00:41:56.640 and then there's some other properties 00:41:56.640 --> 00:41:59.960 that are completely neglected, 00:41:59.960 --> 00:42:03.800 causing a real safety problem, 00:42:03.800 --> 00:42:07.160 and we're right next to concrete elementary, 00:42:07.160 --> 00:42:08.240 10th of a mile. 00:42:08.240 --> 00:42:13.320 So it is, in my opinion, a severe problem. 00:42:13.320 --> 00:42:15.240 - A severe health risk. 00:42:15.240 --> 00:42:16.080 Health and safety. 00:42:16.080 --> 00:42:23.080 - This was not shown on any slide in prior to this meeting. 00:42:23.080 --> 00:42:24.520 Just to summarize the council, 00:42:24.520 --> 00:42:27.120 the direction we received on the fourth 00:42:27.120 --> 00:42:28.440 was that we would, again, 00:42:28.440 --> 00:42:30.760 continue to ask for previous direction from the tent, 00:42:30.760 --> 00:42:33.240 particularly with the provision of temporary water 00:42:33.240 --> 00:42:34.480 and working with the residents 00:42:34.480 --> 00:42:36.600 to just gather as much information we can 00:42:36.600 --> 00:42:39.000 on the future intentions of each property, 00:42:39.000 --> 00:42:42.560 whether they want to connect to the system or not. 00:42:42.560 --> 00:42:45.320 We are going to continue to communicate 00:42:45.320 --> 00:42:46.760 connection requirements, 00:42:46.760 --> 00:42:49.360 and pay queues, letters, door-to-door, 00:42:49.360 --> 00:42:51.160 whatever we need just so that they know 00:42:51.160 --> 00:42:53.000 what is required of them in detail, 00:42:53.000 --> 00:42:54.960 and, of course, to make ourselves available 00:42:54.960 --> 00:42:58.520 as much as we can in dual language, 00:42:58.520 --> 00:42:59.920 Spanish language and English language, 00:42:59.920 --> 00:43:01.960 because most of the folks living out there 00:43:01.960 --> 00:43:03.800 are Spanish speakers. 00:43:03.800 --> 00:43:08.080 We are scheduling a council discussion 00:43:08.080 --> 00:43:11.080 on the feasibility of a per-ad agreement 00:43:11.080 --> 00:43:11.960 and what that might look like. 00:43:11.960 --> 00:43:13.240 This was requested by the council 00:43:13.240 --> 00:43:17.280 and is currently scheduled for the 18th of February. 00:43:17.280 --> 00:43:19.120 And then we're gonna provide additional information 00:43:19.120 --> 00:43:20.320 to council that they requested 00:43:20.320 --> 00:43:23.280 regarding inspection requirements. 00:43:23.280 --> 00:43:26.040 Do those look like what exactly do we have to inspect 00:43:26.040 --> 00:43:27.960 when someone connects to the water system? 00:43:27.960 --> 00:43:30.920 And also our code requirements, generally, 00:43:30.920 --> 00:43:32.960 particularly for those residents 00:43:32.960 --> 00:43:35.080 who want to do some of the plumbing work themselves. 00:43:35.080 --> 00:43:36.600 We at least want to have an idea 00:43:36.600 --> 00:43:39.480 of what would be required if they do hire a licensed plumber 00:43:39.480 --> 00:43:43.080 to provide a little more detail with the council as well. 00:43:43.080 --> 00:43:45.400 And then we are scheduled to update council 00:43:45.400 --> 00:43:49.360 one month prior to the May 22nd expiration. 00:43:49.360 --> 00:43:52.760 So somewhere on or about April 23rd, 00:43:52.760 --> 00:43:53.800 we will give them an update 00:43:53.800 --> 00:43:55.440 on where the residents are at, 00:43:55.440 --> 00:43:58.760 how many are interested in connecting to the city, 00:43:58.760 --> 00:44:00.880 and how far along they feel they are 00:44:00.880 --> 00:44:02.680 to be ready to connect to the city. 00:44:02.680 --> 00:44:05.840 And with that, I'm happy to answer 00:44:05.840 --> 00:44:08.200 any of the questions that you may have. 00:44:08.200 --> 00:44:10.000 - Any others? 00:44:10.000 --> 00:44:11.920 - Just a comment here. 00:44:11.920 --> 00:44:14.080 It seems to me that there's a lot of lessons 00:44:14.080 --> 00:44:18.200 to be learned here from this episode in Denton City. 00:44:19.400 --> 00:44:22.640 The city initiated the annexation. 00:44:22.640 --> 00:44:24.040 The residents did not. 00:44:24.040 --> 00:44:30.080 And in doing so, the city, perhaps unawarely, 00:44:30.080 --> 00:44:34.680 unknowingly, took on some financial liability 00:44:34.680 --> 00:44:37.760 that they didn't realize it was going to have. 00:44:37.760 --> 00:44:42.600 So maybe somebody should take a look 00:44:42.600 --> 00:44:47.600 at all these other similar areas like they had mentioned, 00:44:48.200 --> 00:44:53.200 and do some kind of a preliminary cost analysis. 00:44:53.200 --> 00:44:56.720 If you duplicate this same scenario 00:44:56.720 --> 00:44:59.280 in these other locations, 00:44:59.280 --> 00:45:03.120 if they're the ones that were annexed, 00:45:03.120 --> 00:45:06.560 one of the residents of those spots did not request it, 00:45:06.560 --> 00:45:11.120 but the city wanted to include them in the city loans. 00:45:11.120 --> 00:45:15.200 So this is an opportunity to think these things through, 00:45:15.200 --> 00:45:17.240 I think, in more detail. 00:45:18.960 --> 00:45:21.400 - And if I can, I think you're absolutely right. 00:45:21.400 --> 00:45:23.400 This is a unique situation 00:45:23.400 --> 00:45:25.000 that the city has learned a lot from, 00:45:25.000 --> 00:45:26.400 but one of the things that we have done 00:45:26.400 --> 00:45:28.880 is to begin the process of understanding more 00:45:28.880 --> 00:45:32.640 about what other neighborhoods might present 00:45:32.640 --> 00:45:36.560 a similar situation, probably not exactly, 00:45:36.560 --> 00:45:38.640 but a similar situation in the future, 00:45:38.640 --> 00:45:41.800 or have the possibility of that being an option 00:45:41.800 --> 00:45:44.120 in the future, and to be prepared for that. 00:45:44.120 --> 00:45:45.400 So you're absolutely right. 00:45:45.400 --> 00:45:50.400 And that is starting to look into that as well. 00:45:50.400 --> 00:45:53.280 - Thank you. - Thank you. 00:45:53.280 --> 00:45:55.240 - The next item is the consent agenda. 00:45:55.240 --> 00:45:58.240 We have items A through E. 00:45:58.240 --> 00:46:03.040 Does any board member wish to pull one of the items? 00:46:03.040 --> 00:46:04.560 - Got a question on B. 00:46:04.560 --> 00:46:05.840 - On B, all right. 00:46:05.840 --> 00:46:09.080 - It's an easy one. 00:46:09.080 --> 00:46:11.200 - All right, yes. 00:46:11.200 --> 00:46:15.280 We have a motion to approve A, C, D, and E. 00:46:16.080 --> 00:46:18.360 - Almost approved. 00:46:18.360 --> 00:46:19.200 - That's it. 00:46:19.200 --> 00:46:20.600 - All in favor, say aye. 00:46:20.600 --> 00:46:21.440 - Aye. 00:46:21.440 --> 00:46:22.880 - All in favor, say aye. - Aye. 00:46:22.880 --> 00:46:23.720 - Here it is. 00:46:23.720 --> 00:46:24.560 Item B. 00:46:24.560 --> 00:46:31.400 And it's RFP for utilities, scale, size, and work. 00:46:31.400 --> 00:46:32.240 - Okay. 00:46:32.240 --> 00:46:33.080 - And it's D. 00:46:33.080 --> 00:46:40.840 - Good morning, you got a target 00:46:40.840 --> 00:46:42.960 on duty, assistant general manager, DME. 00:46:42.960 --> 00:46:43.800 - Yeah. 00:46:43.800 --> 00:46:47.560 - All right, Terry, this is perhaps a silly question. 00:46:47.560 --> 00:46:52.560 What in the world is a utility scale for solar energy? 00:46:52.560 --> 00:46:54.200 - Not a silly question. 00:46:54.200 --> 00:46:58.920 I think anything over a megawatt 00:46:58.920 --> 00:47:02.960 is considered a utility scale solar installation. 00:47:02.960 --> 00:47:08.920 We're seeking to reject this bid because, as you recall, 00:47:11.240 --> 00:47:13.880 we now are attaining our 100%, 00:47:13.880 --> 00:47:16.760 we've got under contract, 100% renewal. 00:47:16.760 --> 00:47:19.800 This was a long-term contract 00:47:19.800 --> 00:47:23.320 that was done at the end of 2000, 00:47:23.320 --> 00:47:26.720 RFP that was done at the end of 2018. 00:47:26.720 --> 00:47:31.080 And I think as we discussed before, 00:47:31.080 --> 00:47:33.240 we're looking to get some temporal diversity 00:47:33.240 --> 00:47:36.560 into the portfolio of some shorter-term contracts. 00:47:36.560 --> 00:47:40.920 We have bids that will be opening here in the next week. 00:47:41.720 --> 00:47:46.000 That will be alternatives to this particular requisition 00:47:46.000 --> 00:47:48.000 that will enable us to be able to get both. 00:47:48.000 --> 00:47:52.400 We can dial in the volumes we want 00:47:52.400 --> 00:47:54.880 and dial in terms that we want. 00:47:54.880 --> 00:47:55.840 - Okay. 00:47:55.840 --> 00:48:00.600 So this is really just requesting an order 00:48:00.600 --> 00:48:03.080 is to reject the proposal you received. 00:48:03.080 --> 00:48:03.920 - Correct. 00:48:03.920 --> 00:48:05.200 - Because they're not favorable. 00:48:05.200 --> 00:48:07.040 My end up was a scale, 00:48:07.040 --> 00:48:10.000 I thought you were measuring it the way the staff takes. 00:48:11.200 --> 00:48:14.400 - And you also weighed solar energy quite a bit. 00:48:14.400 --> 00:48:16.440 - Okay, I get it. 00:48:16.440 --> 00:48:18.600 - I have one more question. 00:48:18.600 --> 00:48:25.240 Would this energy be in the form of REX? 00:48:25.240 --> 00:48:29.560 - This particular one was specified in the RFP 00:48:29.560 --> 00:48:32.040 as both energy and REX. 00:48:32.040 --> 00:48:35.800 So unlike the Whitetail contract, 00:48:35.800 --> 00:48:39.960 which has a bifurcation of energy and REX, 00:48:39.960 --> 00:48:44.200 this one was a combined energy and REX. 00:48:44.200 --> 00:48:47.800 - And the new contracts that you proposed 00:48:47.800 --> 00:48:51.480 that you're just putting out, what happened? 00:48:51.480 --> 00:48:53.000 - They would be combined as well. 00:48:53.000 --> 00:48:54.320 - Okay. 00:48:54.320 --> 00:48:58.120 A little question just to educate myself. 00:48:58.120 --> 00:49:01.360 Is there a limited number of REX in the system 00:49:01.360 --> 00:49:06.360 or does ERCOT say we can only carry this much 00:49:06.360 --> 00:49:07.680 in the portfolio? 00:49:08.640 --> 00:49:10.240 - There's no limit. 00:49:10.240 --> 00:49:14.600 As long as a renewable energy generator 00:49:14.600 --> 00:49:18.080 is permitted to interconnect with the grid, 00:49:18.080 --> 00:49:20.040 it is eligible to receive REX. 00:49:20.040 --> 00:49:21.920 - Thank you. 00:49:21.920 --> 00:49:26.160 - Do we have a motion to approve IDB? 00:49:26.160 --> 00:49:29.840 - I second. 00:49:29.840 --> 00:49:31.200 - All in favor say aye. 00:49:31.200 --> 00:49:32.280 - Aye. 00:49:32.280 --> 00:49:34.000 - Opposed, motion carries. 00:49:34.000 --> 00:49:38.040 Next item is consider approval of the minutes 00:49:38.040 --> 00:49:41.200 of January 27th, 2020. 00:49:41.200 --> 00:49:42.720 Does anyone have any changes? 00:49:42.720 --> 00:49:45.560 - Approved. 00:49:45.560 --> 00:49:46.400 - Second. 00:49:46.400 --> 00:49:47.240 - Okay. 00:49:47.240 --> 00:49:48.080 All in favor say aye. 00:49:48.080 --> 00:49:48.920 - Aye. 00:49:48.920 --> 00:49:50.880 - I have a B. 00:49:50.880 --> 00:49:52.600 - I have a comment. 00:49:52.600 --> 00:49:54.200 - Sure you can, of course. 00:49:54.200 --> 00:49:58.600 - I just wanted to congratulate the minute taker 00:49:58.600 --> 00:50:02.080 on the format for this and that the responses 00:50:02.080 --> 00:50:04.120 are actually done in bolder faces. 00:50:04.120 --> 00:50:05.960 A lot easier to read. 00:50:05.960 --> 00:50:06.800 Thanks. 00:50:08.680 --> 00:50:10.520 - No, thank you. 00:50:10.520 --> 00:50:13.960 - Okay, item B is consider the adoption of an ordinance 00:50:13.960 --> 00:50:16.840 for the construction of the North-South Watermain 00:50:16.840 --> 00:50:17.880 phase three project. 00:50:17.880 --> 00:50:28.120 - Good morning, Madam Chair, members of the board. 00:50:28.120 --> 00:50:29.160 My name is Seth Garcia. 00:50:29.160 --> 00:50:31.880 I'm a project manager with Capital Projects. 00:50:31.880 --> 00:50:33.680 Today I'll be doing a short presentation 00:50:33.680 --> 00:50:35.920 on the award of construction contract 00:50:35.920 --> 00:50:38.440 for North-South Watermain phase three. 00:50:38.440 --> 00:50:45.640 A little project overview and a little background. 00:50:45.640 --> 00:50:49.800 Phase one of this project was completed in 2011. 00:50:49.800 --> 00:50:52.440 It runs from the northern extent of this project 00:50:52.440 --> 00:50:55.120 all the way to loop 288. 00:50:55.120 --> 00:50:57.680 Phase two of this project is currently under construction 00:50:57.680 --> 00:50:59.920 and runs from Rose Lawn all the way 00:50:59.920 --> 00:51:01.840 to the southern end of this project. 00:51:01.840 --> 00:51:05.120 So phase three ultimately will tie the two pieces together 00:51:05.120 --> 00:51:07.560 and provide a 42-inch transmission lane 00:51:07.560 --> 00:51:10.840 from north of loop 288 all the way to Rose Lawn, 00:51:10.840 --> 00:51:11.680 south of town. 00:51:11.680 --> 00:51:16.040 This particular phase consists of a project 00:51:16.040 --> 00:51:20.800 that is 4,200 feet of 42-inch poly-coated steel main 00:51:20.800 --> 00:51:23.840 as well as 900 feet of 12-inch water main 00:51:23.840 --> 00:51:26.200 that needs to be relocated along Bonnie Break 00:51:26.200 --> 00:51:28.640 for the installation of this line. 00:51:28.640 --> 00:51:32.680 The extents for this is completely on Bonnie Break itself 00:51:32.680 --> 00:51:36.200 from basically the Tex-Dot area office 00:51:36.200 --> 00:51:38.600 just north of the I-35 service road 00:51:38.600 --> 00:51:40.600 to just south of the Panhandle. 00:51:40.600 --> 00:51:47.800 The solicitation was sent to 296 bidders. 00:51:47.800 --> 00:51:50.120 We received eight bids, 00:51:50.120 --> 00:51:52.840 the lowest being S&J Construction Company 00:51:52.840 --> 00:51:55.480 at $4,551. 00:51:55.480 --> 00:52:00.520 A little breakdown of our schedule. 00:52:00.520 --> 00:52:02.400 With your approval, we'll go for Councilor Moore 00:52:02.400 --> 00:52:04.280 next week, February 18th. 00:52:04.280 --> 00:52:07.400 A notice to proceed will be issued shortly after that 00:52:07.400 --> 00:52:11.280 and construction will be completed by February 2021. 00:52:11.280 --> 00:52:18.640 Staff recommends accepting the competitive little bid 00:52:18.640 --> 00:52:21.880 to S&J Construction for the north-south water main phase three 00:52:21.880 --> 00:52:26.040 in the amount of $4,551.18. 00:52:26.040 --> 00:52:29.840 Any questions? - Questions. 00:52:29.840 --> 00:52:32.640 - Yeah, I have a question. Has this firm done work 00:52:32.640 --> 00:52:34.200 for Denton before? 00:52:34.200 --> 00:52:37.560 - This is the first time this firm has done work in Denton. 00:52:37.560 --> 00:52:40.040 Most recently, as one of their references, 00:52:40.040 --> 00:52:41.960 they did some work for Wichita Falls 00:52:41.960 --> 00:52:44.720 with their reuse issue. 00:52:44.720 --> 00:52:47.760 They laid a lot of the reuse line for that. 00:52:47.760 --> 00:52:49.560 - Okay, that's the follow-up question. 00:52:49.560 --> 00:52:52.000 What is the process within your department 00:52:52.000 --> 00:52:55.120 for evaluating new contractors like this? 00:52:55.120 --> 00:52:58.240 - So with this one, we actually took some precautions 00:52:58.240 --> 00:53:00.720 just because of the type of pipe that it is. 00:53:00.720 --> 00:53:02.240 It's not a very common pipe. 00:53:02.240 --> 00:53:04.400 It's 42-inch poly-coated steel. 00:53:04.400 --> 00:53:06.960 There's only generally a handful of contractors 00:53:06.960 --> 00:53:08.800 that are doing this around. 00:53:08.800 --> 00:53:12.840 So our engineering firm actually reached out 00:53:12.840 --> 00:53:15.440 to the three references listed. 00:53:15.440 --> 00:53:17.800 All three gave favorable references. 00:53:17.800 --> 00:53:22.520 Through purchasing, we got some clarification on a few things 00:53:22.520 --> 00:53:26.520 and our engineer felt comfortable recommending them 00:53:26.520 --> 00:53:29.040 for the construction contract. 00:53:29.040 --> 00:53:33.520 - Move to approve. 00:53:33.520 --> 00:53:34.360 - All right. 00:53:34.360 --> 00:53:35.200 - Second. 00:53:35.200 --> 00:53:36.360 - All in favor say aye. 00:53:36.360 --> 00:53:37.200 - Aye. 00:53:37.200 --> 00:53:38.520 - Motion carries. 00:53:38.520 --> 00:53:39.360 - Thank you. 00:53:39.360 --> 00:53:42.720 - Next item is consider recommending adoption 00:53:42.720 --> 00:53:46.920 of a new ordinance for the city of Denton 00:53:46.920 --> 00:53:50.240 to execute a contract with quality excavation LLC 00:53:50.240 --> 00:53:53.840 for the 2019 street reconstruction projects. 00:53:56.520 --> 00:53:59.360 (papers rustling) 00:53:59.360 --> 00:54:06.440 - Justin, you put a normal thing over here? 00:54:06.440 --> 00:54:07.280 - Mm-hmm. 00:54:07.280 --> 00:54:11.000 - Justin, you put a normal thing over here? 00:54:11.000 --> 00:54:16.320 I'm sorry, I'm out of time. 00:54:16.320 --> 00:54:19.160 (papers rustling) 00:54:19.160 --> 00:54:23.280 (coughing) 00:54:26.840 --> 00:54:27.680 - Go. 00:54:27.680 --> 00:54:36.520 - All right, good morning. 00:54:36.520 --> 00:54:37.480 My name is Trevor Cranny. 00:54:37.480 --> 00:54:40.520 I'm a project manager in the capital projects. 00:54:40.520 --> 00:54:42.920 Today, we're gonna be talking about 00:54:42.920 --> 00:54:45.600 the 2019 street reconstruction project. 00:54:45.600 --> 00:54:50.520 We're looking to award contract to quality excavation. 00:54:55.160 --> 00:54:57.400 So a small overview of this project. 00:54:57.400 --> 00:55:00.040 As you can see, it's kinda spread out throughout the city. 00:55:00.040 --> 00:55:03.880 What we did was pick those four main areas 00:55:03.880 --> 00:55:07.920 that consist of roadway water and wastewater improvements 00:55:07.920 --> 00:55:09.560 on a section of Hercules Lane, 00:55:09.560 --> 00:55:12.560 Scripture Street, Thomas Street, and Mary Drive. 00:55:12.560 --> 00:55:18.560 The breakdown on that is we have on Scripture, 00:55:18.560 --> 00:55:21.040 we're doing street and some sewer work. 00:55:21.040 --> 00:55:24.200 On Windsor, we're doing street and water and sewer. 00:55:24.200 --> 00:55:26.160 On the other two streets, Hercules and Thomas, 00:55:26.160 --> 00:55:28.440 we're just doing some street reconstruction. 00:55:28.440 --> 00:55:35.360 So we got four bids on this one. 00:55:35.360 --> 00:55:38.560 As you can see, quality excavation was a low bid 00:55:38.560 --> 00:55:39.880 by almost $2 million. 00:55:39.880 --> 00:55:42.880 We did go through their bid 00:55:42.880 --> 00:55:45.040 'cause it was a pretty big difference. 00:55:45.040 --> 00:55:47.520 A lot of that difference is due to mobilization. 00:55:47.520 --> 00:55:52.480 Quality excavation does have a site here pretty close, 00:55:52.480 --> 00:55:57.480 so that kinda made a difference of where they made their low bid. 00:55:57.480 --> 00:56:02.920 Construction schedule, this is actually, 00:56:02.920 --> 00:56:05.840 we were shooting a little far in the future, 00:56:05.840 --> 00:56:07.600 but we're looking at a council next week 00:56:07.600 --> 00:56:09.440 if we get approved here. 00:56:09.440 --> 00:56:11.520 So this will actually move up a little bit. 00:56:11.520 --> 00:56:13.320 But it's a two-year contract. 00:56:13.320 --> 00:56:15.520 There are some schools located in these areas, 00:56:15.520 --> 00:56:17.520 so we wanna make sure we give them time 00:56:17.520 --> 00:56:20.640 to work on those schools during summer, 00:56:20.640 --> 00:56:22.760 when that is dictated in the contract. 00:56:22.760 --> 00:56:28.960 So we're recommending an adoption of an ordinance 00:56:28.960 --> 00:56:30.680 to accept a competitive low bid 00:56:30.680 --> 00:56:32.560 and awarding a public works contract 00:56:32.560 --> 00:56:36.640 for the construction of the 2019 Street Reconstruction Project, 00:56:36.640 --> 00:56:39.080 quality excavation, and not to exceed the amount 00:56:39.080 --> 00:56:43.160 of $10 million, $202,355.45. 00:56:43.160 --> 00:56:48.200 - Questions? 00:56:48.200 --> 00:56:52.560 DSF, what is your quality control process 00:56:52.560 --> 00:56:54.480 for a project like this? 00:56:54.480 --> 00:56:57.200 - Quality control, like as far as the construction itself? 00:56:57.200 --> 00:56:58.120 - Correct. 00:56:58.120 --> 00:57:01.560 - So in these contracts, we require the contractor 00:57:01.560 --> 00:57:05.920 to provide testing, to get a testing lab on one site, 00:57:05.920 --> 00:57:08.600 to test their materials. 00:57:08.600 --> 00:57:11.680 They have to do material testing, 00:57:11.680 --> 00:57:13.960 compaction testing, all those type of things. 00:57:13.960 --> 00:57:17.000 We also get a PO with the testing lab 00:57:17.000 --> 00:57:21.160 as far as the state's concern to spot check their testing. 00:57:21.160 --> 00:57:24.440 - So the contractor releases himself 00:57:24.440 --> 00:57:26.880 on whether he is attaining the right compaction. 00:57:26.880 --> 00:57:28.720 - That's correct. 00:57:28.720 --> 00:57:29.560 - I can answer that. 00:57:29.560 --> 00:57:30.840 My name is Dustin Roper. 00:57:30.840 --> 00:57:34.240 The program I get probably is, 00:57:34.240 --> 00:57:36.040 as we said, it's probably south in the states 00:57:36.040 --> 00:57:37.920 on this job, four hours to a minimum, 00:57:37.920 --> 00:57:39.880 four day out every day. 00:57:39.880 --> 00:57:41.960 Every time the last sample test, 00:57:41.960 --> 00:57:44.400 we'll even know that the contractor does provide 00:57:44.400 --> 00:57:48.600 the testing, the representative will sit in his letter. 00:57:48.600 --> 00:57:51.800 Every time the test, we'll give it up. 00:57:51.800 --> 00:57:55.880 Sorry, I don't know what this is, I'm cracking it up. 00:57:55.880 --> 00:57:57.440 In the other minute, for the worst of it, 00:57:57.440 --> 00:57:59.120 I'll be there, I'll probably be the manager 00:57:59.120 --> 00:58:03.440 or myself, go out and basically watch something like this. 00:58:03.440 --> 00:58:06.600 - One thing is specifically in the soil compaction, 00:58:06.600 --> 00:58:08.240 prior to placing the pavement. 00:58:08.240 --> 00:58:11.520 If a pavement breaks and fails, 00:58:11.520 --> 00:58:13.280 the year after, we put it down. 00:58:13.280 --> 00:58:17.280 Often times, that's because the soil wasn't prepared for that. 00:58:17.280 --> 00:58:21.400 And the nuclear density meter can be used to check 00:58:21.400 --> 00:58:25.120 compaction and you know the results now. 00:58:25.120 --> 00:58:25.960 Is that what you do? 00:58:25.960 --> 00:58:26.800 - Yes, sir. 00:58:26.800 --> 00:58:27.640 - That's correct. 00:58:27.640 --> 00:58:29.120 - It's also the water moisture content problem, 00:58:29.120 --> 00:58:30.640 what you're gonna do. 00:58:30.640 --> 00:58:33.720 It's also required to set a period of four or five days 00:58:33.720 --> 00:58:37.000 before we pay to make sure that there is no, 00:58:37.000 --> 00:58:38.800 when they're cracking, and so forth. 00:58:38.800 --> 00:58:41.440 Yes, sir, and now? 00:58:41.440 --> 00:58:43.120 - So that is a good point. 00:58:43.120 --> 00:58:44.400 As every building is celebrating, 00:58:44.400 --> 00:58:47.280 we also put in a small list of what we test each week, 00:58:47.280 --> 00:58:50.520 so we don't have as many cracking that we have to hold. 00:58:50.520 --> 00:58:55.520 - Right, our respects do dictate the width 00:58:55.520 --> 00:58:57.840 that they have to compact in, 00:58:57.840 --> 00:59:00.400 what the materials have to be underneath the pipe, 00:59:00.400 --> 00:59:04.040 as far as the top of the pipe is concerned. 00:59:04.040 --> 00:59:07.760 - Any other questions? 00:59:07.760 --> 00:59:10.080 I was gonna ask a question about almost two million 00:59:10.080 --> 00:59:12.320 that you beat me to it, so. 00:59:12.320 --> 00:59:13.240 You knew that didn't you? 00:59:13.240 --> 00:59:15.960 - Yeah, they did have a couple other items, 00:59:15.960 --> 00:59:19.240 mainly on the water and wastewater that were a little lower, 00:59:19.240 --> 00:59:22.360 but the majority of the bulldozer they should cost that, 00:59:22.360 --> 00:59:24.280 whether it kind of be everybody else. 00:59:24.280 --> 00:59:27.520 - I have a motion to approve. 00:59:27.520 --> 00:59:30.160 - I move to approve. 00:59:30.160 --> 00:59:31.360 - I'll second. 00:59:31.360 --> 00:59:32.840 - All in favor say aye. 00:59:32.840 --> 00:59:33.920 - Aye. 00:59:33.920 --> 00:59:35.280 - Motion carries. 00:59:35.280 --> 00:59:37.120 Assistant manager R.P. 00:59:37.120 --> 00:59:37.960 Yes, sir. 00:59:37.960 --> 00:59:41.440 - Board members, we have a few items 00:59:41.440 --> 00:59:44.240 that are included in the ACM updates. 00:59:44.240 --> 00:59:49.160 The first one is the solid waste management study, 00:59:49.160 --> 00:59:53.640 and that is just an item for your information. 00:59:53.640 --> 00:59:55.760 This item is out on the street right now, 00:59:55.760 --> 00:59:57.720 it will be coming back to you 00:59:57.720 --> 01:00:00.360 once the evaluations have been done. 01:00:00.360 --> 01:00:02.200 Let's have one to provide that information 01:00:02.200 --> 01:00:03.920 to you ahead of time so you can come see 01:00:03.920 --> 01:00:05.760 what elements exist. 01:00:05.760 --> 01:00:07.720 Brian Burner is here if you have any questions 01:00:07.720 --> 01:00:09.080 about that particular item. 01:00:12.440 --> 01:00:16.760 - Okay, the next item is a development agreement 01:00:16.760 --> 01:00:19.600 for a development called Sagebrook, 01:00:19.600 --> 01:00:23.200 and what it will be is basically, 01:00:23.200 --> 01:00:26.360 oh, I'm so sorry, I almost did it. 01:00:26.360 --> 01:00:31.360 What it will be is essentially a development agreement 01:00:31.360 --> 01:00:36.680 for an area that's being voluntarily annexed into the city. 01:00:36.680 --> 01:00:41.400 The development agreement will be put in place 01:00:41.400 --> 01:00:46.120 we expect due to the location's preliminary conversations 01:00:46.120 --> 01:00:47.760 that we've been having with the developer 01:00:47.760 --> 01:00:50.200 that there will be an oversized participation agreement 01:00:50.200 --> 01:00:52.840 for wastewater services coming off of that, 01:00:52.840 --> 01:00:55.680 and so if that happens, and it likely will, 01:00:55.680 --> 01:00:57.560 you'll be seeing that item coming forward. 01:00:57.560 --> 01:00:59.440 We just wanted to give you a little context 01:00:59.440 --> 01:01:04.440 on what Sagebrook was and why this was coming forward 01:01:04.440 --> 01:01:06.280 with this development agreement. 01:01:10.120 --> 01:01:15.120 The future PUD items, we have just a couple on there. 01:01:15.120 --> 01:01:21.320 So the wastewater rate study you've received today, 01:01:21.320 --> 01:01:24.480 it's my understanding that the energy center dashboard 01:01:24.480 --> 01:01:26.440 had to be moved, there were a few more elements 01:01:26.440 --> 01:01:29.280 to be completed on it, and it is anticipated 01:01:29.280 --> 01:01:32.040 to be at the PUD meeting on the 24th. 01:01:32.040 --> 01:01:37.000 And then moving on to new business action items, 01:01:37.000 --> 01:01:42.000 so we head to the tour of the recycling center for crack, 01:01:42.000 --> 01:01:44.360 and it's my understanding that it's scheduled 01:01:44.360 --> 01:01:46.440 for this Wednesday the 12th. 01:01:46.440 --> 01:01:50.200 So I wish everybody a good tour on that, 01:01:50.200 --> 01:01:54.080 it's always an exciting thing to see. 01:01:54.080 --> 01:01:58.200 And then we're member of effort had asked about 01:01:58.200 --> 01:02:02.440 the process for equipment replacement 01:02:02.440 --> 01:02:05.760 that is scheduled for the next meeting on the 24th, 01:02:05.760 --> 01:02:09.560 and we can figure it all out, and that's all I have. 01:02:09.560 --> 01:02:10.960 - Thank you. 01:02:10.960 --> 01:02:13.040 All right, concluding items. 01:02:13.040 --> 01:02:15.080 Does the board now wish to have anything added 01:02:15.080 --> 01:02:18.560 to the future agenda or any comments? 01:02:18.560 --> 01:02:23.680 Do I have a motion to adjourn? 01:02:23.680 --> 01:02:27.680 All right, I'll adjourn.