WEBVTT 00:00:00.000 --> 00:00:03.360 Yes, Russ. 00:00:03.360 --> 00:00:09.920 I was absent on the 13th, so I won't vote on that one. 00:00:09.920 --> 00:00:14.200 Okay, so we'll need to take them in two different. 00:00:14.200 --> 00:00:15.200 Okay. 00:00:15.200 --> 00:00:20.520 I have nothing on the 13th, so we can approve that as far as I'm concerned. 00:00:20.520 --> 00:00:21.520 Okay, do we have a motion? 00:00:21.520 --> 00:00:23.320 I second his motion to approve. 00:00:23.320 --> 00:00:24.320 Okay. 00:00:24.320 --> 00:00:28.160 Assuming Russ was effectively a motion to approve, I second. 00:00:28.160 --> 00:00:29.160 Okay. 00:00:29.160 --> 00:00:30.160 All in favor, aye? 00:00:30.160 --> 00:00:31.160 Aye. 00:00:31.160 --> 00:00:32.160 Opposed? 00:00:32.160 --> 00:00:35.440 And Karen's not voting, so that's a record. 00:00:35.440 --> 00:00:36.440 Okay. 00:00:36.440 --> 00:00:37.440 July 27th. 00:00:37.440 --> 00:00:38.440 Russ, you have a? 00:00:38.440 --> 00:00:44.280 Yeah, just to comment on item C, where we discussed that pump failure. 00:00:44.280 --> 00:00:50.120 And the comment – what I think is maybe the most important comment was not listed 00:00:50.120 --> 00:00:58.200 in the minutes, and that comment is the discussion we had with Ken Banks about the need to have 00:00:58.200 --> 00:01:11.000 a policy to require a written, formal, root-caused analysis or a root-caused analysis or a failure 00:01:11.000 --> 00:01:13.680 analysis when something like that happens. 00:01:13.680 --> 00:01:19.080 And he said he was going to make sure that requirement was in his policies, and if not, 00:01:19.080 --> 00:01:22.200 he was going to add it to his policies. 00:01:22.200 --> 00:01:26.880 That's, to me, the most important thing that came out of that. 00:01:26.880 --> 00:01:31.720 We can certainly go back and amend those minutes and bring them back to you. 00:01:31.720 --> 00:01:39.920 So, Russ, the PUB received a fairly thorough report on that right afterwards. 00:01:39.920 --> 00:01:43.000 I've never received – I've never received anything about it. 00:01:43.000 --> 00:01:45.640 Right, because you weren't on the board at that point. 00:01:45.640 --> 00:01:50.440 So it might be useful if somebody could let you know the date of the minutes or the date 00:01:50.440 --> 00:01:54.680 of the presentation, and you could go back and look at our backup. 00:01:54.680 --> 00:01:55.680 Okay. 00:01:55.680 --> 00:01:56.680 That's fine. 00:01:56.680 --> 00:01:57.680 Yeah. 00:01:57.680 --> 00:02:00.760 I can do a pretty detailed report once something like this happens. 00:02:00.760 --> 00:02:01.760 Okay. 00:02:01.760 --> 00:02:09.760 I guess the question was, is it a requirement written down in any policy of the department? 00:02:09.760 --> 00:02:11.240 That's the issue. 00:02:11.240 --> 00:02:15.320 Or is it just kind of a hit-and-miss thing? 00:02:15.320 --> 00:02:18.000 I think it's a routine, isn't it, Tony? 00:02:18.000 --> 00:02:19.560 Yes, it is. 00:02:19.560 --> 00:02:22.080 I think Kenny wanted to verify whether or not it was in the policy. 00:02:22.080 --> 00:02:26.920 He was pretty confident that it was, but I don't think he's completed his review of 00:02:26.920 --> 00:02:27.920 that. 00:02:27.920 --> 00:02:28.920 Okay. 00:02:28.920 --> 00:02:32.160 But we can certainly get back with you, Mr. Bradford, and kind of let you know kind of 00:02:32.160 --> 00:02:33.160 where that is. 00:02:33.160 --> 00:02:34.160 All right. 00:02:34.160 --> 00:02:35.160 Thank you. 00:02:35.160 --> 00:02:36.440 That's the only thing I had on that. 00:02:36.440 --> 00:02:40.240 So do we just table this? 00:02:40.240 --> 00:02:44.560 I have a couple of amendments to the minutes as well. 00:02:44.560 --> 00:02:45.560 Okay. 00:02:45.560 --> 00:02:46.560 Go ahead. 00:02:46.560 --> 00:02:47.560 Where are you, Charlie? 00:02:47.560 --> 00:02:59.960 First, on the Item 2B, just for the sake of abundance of caution, I think we should mention 00:02:59.960 --> 00:03:04.920 that Bill Chee left the meeting and recused himself from the discussion, not just that 00:03:04.920 --> 00:03:09.220 he recused himself for the discussion. 00:03:09.220 --> 00:03:13.800 Given the scope and the size of that, I think we should document it in the minutes that 00:03:13.800 --> 00:03:15.980 he left the meeting. 00:03:15.980 --> 00:03:19.240 And then- The clarification, actually. 00:03:19.240 --> 00:03:29.980 The second clarification on the lawsuit issue, the minutes refer to it as a lawsuit between 00:03:29.980 --> 00:03:34.920 DME and former employees, and that seems a little bit misleading. 00:03:34.920 --> 00:03:37.560 The lawsuit is grim and- Excuse me, Charlie? 00:03:37.560 --> 00:03:38.560 Charlie? 00:03:38.560 --> 00:03:39.560 Yeah. 00:03:39.560 --> 00:03:40.720 Can you turn your camera on, please? 00:03:40.720 --> 00:03:42.920 Thank you. 00:03:42.920 --> 00:03:46.960 I can't look at- I'll have my camera on in just a second. 00:03:46.960 --> 00:03:51.720 I've got to read off of my word, then I'll turn my camera off. 00:03:51.720 --> 00:03:56.880 But the lawsuit is entitled Grim and Maynard versus City of Denton. 00:03:56.880 --> 00:04:03.640 So it's a little misleading to call it a lawsuit between DME and former employees. 00:04:03.640 --> 00:04:11.980 And it also says that the judgment has not been received or arrived at. 00:04:11.980 --> 00:04:22.200 The jury awarded a $3.9 million verdict on or around February, what, 10th of 2020. 00:04:22.200 --> 00:04:31.980 So I think covering it differently seems- And I've got my video on now. 00:04:31.980 --> 00:04:34.720 I just wanted to look at my notes on that. 00:04:34.720 --> 00:04:39.680 I think we should be accurate in the minutes and not call it a lawsuit involving DME and 00:04:39.680 --> 00:04:41.300 former employees. 00:04:41.300 --> 00:04:46.040 Grim versus City of Denton is the title of a lawsuit. 00:04:46.040 --> 00:04:50.600 We can certainly work with the city attorney's office and get those corrected. 00:04:50.600 --> 00:04:55.160 So I'm assuming we need to table them for now? 00:04:55.160 --> 00:04:56.160 Correct. 00:04:56.160 --> 00:05:01.960 And just a point, Larry, if I'm wrong, we need to keep our faces on when we're speaking 00:05:01.960 --> 00:05:07.240 because this is an open meeting and they need to be recording us visually. 00:05:07.240 --> 00:05:08.240 Right. 00:05:08.240 --> 00:05:11.400 So don't turn your cameras off. 00:05:11.400 --> 00:05:12.560 Sorry. 00:05:12.560 --> 00:05:16.420 My only reason for turning the camera off was that I was looking at a Word document. 00:05:16.420 --> 00:05:18.600 I'm down to one computer screen. 00:05:18.600 --> 00:05:19.600 Okay. 00:05:19.600 --> 00:05:21.320 All right. 00:05:21.320 --> 00:05:22.960 That's why I use two different devices. 00:05:22.960 --> 00:05:24.960 That's okay. 00:05:24.960 --> 00:05:30.700 Next item is management update, new business action items. 00:05:30.700 --> 00:05:36.000 So Madam Chair and PB members, there was a couple of items that are still outstanding. 00:05:36.000 --> 00:05:39.400 I just wanted to go over the items that have been completed. 00:05:39.400 --> 00:05:45.000 So we've provided the copy of the 2015 fleet ordinance and also the information on the 00:05:45.000 --> 00:05:46.320 preferred purchasing policy. 00:05:46.320 --> 00:05:48.000 Those two items have been provided. 00:05:48.000 --> 00:05:53.040 I think there was some additional feedback from Mr. Sofe regarding the purchasing policy 00:05:53.040 --> 00:05:56.520 that we'll be taking back to the COE. 00:05:56.520 --> 00:06:00.960 The item, item number three on the capital utilities approved dollars versus spend dollars 00:06:00.960 --> 00:06:03.560 that will be covered in today's budget presentations. 00:06:03.560 --> 00:06:08.960 So we hope that that'll meet your, your expectations on, on that particular item. 00:06:08.960 --> 00:06:14.120 And then the item number one, which had to do with the, with this pending litigation, 00:06:14.120 --> 00:06:19.000 I know that at the last meeting, I think it was a three, three kind of vote, but I think 00:06:19.000 --> 00:06:22.400 the city attorney's office may have some additional information to provide. 00:06:22.400 --> 00:06:27.040 So I'll look at Larry to see if he wants to chime in on, on that front. 00:06:27.040 --> 00:06:29.360 Not right now. 00:06:29.360 --> 00:06:41.200 It's just the appropriate time to get Mr. Chief. 00:06:41.200 --> 00:06:45.240 I'm actually reversing my decision after I did some reading this weekend. 00:06:45.240 --> 00:06:50.440 I think we should have an update so that we do understand what's going on knowing that 00:06:50.440 --> 00:06:55.600 it needs to be in closed session and anything we hear cannot be discussed in public. 00:06:55.600 --> 00:07:00.520 Billy, what did your thoughts? 00:07:00.520 --> 00:07:03.840 What was the, what was the item you were speaking which I'm not clear where you're coming from 00:07:03.840 --> 00:07:07.360 Grimm versus city of Denton, right? 00:07:07.360 --> 00:07:08.360 The lawsuit. 00:07:08.360 --> 00:07:12.320 Do we, do you want to hear an update on what is going on with the lawsuit? 00:07:12.320 --> 00:07:13.320 Yes. 00:07:13.320 --> 00:07:15.000 You need to request that of city council. 00:07:15.000 --> 00:07:20.600 Yes, I, I do, but I'm not sure why you were asking me specifically because you were the 00:07:20.600 --> 00:07:23.280 only one that was not on and it was three, three. 00:07:23.280 --> 00:07:24.280 Oh, okay. 00:07:24.280 --> 00:07:25.280 Okay. 00:07:25.280 --> 00:07:38.400 If that's the, if that's the will of the majority, I'm fine with receiving a report. 00:07:38.400 --> 00:07:44.360 I was one of the people who was just on the basis that it was a personnel issue. 00:07:44.360 --> 00:07:45.960 I was there too, Karen. 00:07:45.960 --> 00:07:46.960 I am. 00:07:46.960 --> 00:07:47.960 I understand. 00:07:47.960 --> 00:07:49.640 And I'll make a comment on that, Karen. 00:07:49.640 --> 00:07:53.200 I think the city attorney is not going to let them give us anything that they don't 00:07:53.200 --> 00:07:55.960 think is appropriate for us to see. 00:07:55.960 --> 00:07:56.960 And they shouldn't. 00:07:56.960 --> 00:07:57.960 Yeah, that's true. 00:07:57.960 --> 00:07:58.960 That's true. 00:07:58.960 --> 00:08:04.000 And I think if it affects the budget, that's really where we ought to be coming from. 00:08:04.000 --> 00:08:05.000 Yeah. 00:08:05.000 --> 00:08:08.320 So what will it do with the personnel issue itself? 00:08:08.320 --> 00:08:13.960 We don't need to know anything about the personnel file, just the impact. 00:08:13.960 --> 00:08:15.320 I want to make sure this is clear. 00:08:15.320 --> 00:08:21.080 I mean, you need to make sure the record states why, why you're wanting to hear information 00:08:21.080 --> 00:08:25.520 about the lawsuit, what you're wanting to hear with respect to the lawsuit, when you 00:08:25.520 --> 00:08:30.880 make that request of council, it doesn't need to be just, Hey, we want to hear everything 00:08:30.880 --> 00:08:31.880 about that. 00:08:31.880 --> 00:08:33.640 And Mr. Cheek is right. 00:08:33.640 --> 00:08:38.800 That's where I was coming from the last meeting is when you look at the charter, you have 00:08:38.800 --> 00:08:39.800 the responsibility. 00:08:39.800 --> 00:08:46.480 The PB is with respect to the really the financial operation, the utilities, there's nothing about 00:08:46.480 --> 00:08:51.240 personnel decisions within that, that's reserved to the city council, the city manager. 00:08:51.240 --> 00:08:52.240 Right. 00:08:52.240 --> 00:08:54.880 So from my perspective, what is the financial impact? 00:08:54.880 --> 00:09:00.440 What is the worst it can be and what is the best it can be and limit it to what our financial 00:09:00.440 --> 00:09:03.380 obligation to that would be. 00:09:03.380 --> 00:09:07.840 Any other board member want to weigh in on, is that the correct direction? 00:09:07.840 --> 00:09:18.840 Certainly if the, the impact of the jury's verdict is something that's going to be absorbed 00:09:18.840 --> 00:09:23.360 by the city's budget and the general fund, I would agree. 00:09:23.360 --> 00:09:28.800 It's not within our scope particularly, but if it's the intention of the city manager 00:09:28.800 --> 00:09:36.520 and the city attorney's office to have the municipal utilities funds absorb some of the 00:09:36.520 --> 00:09:43.880 cost of the lawsuit, then yes, it's very germane to our committee to certainly know the publicly 00:09:43.880 --> 00:09:53.600 available information and any non-public information that is, that's germane to our decision or. 00:09:53.600 --> 00:10:03.360 Yeah, expanding on Charlie's point, we, you know, if it's going to be a policy to not 00:10:03.360 --> 00:10:17.160 come up and make a, a settlement that affects the budget and this can, this policy continues. 00:10:17.160 --> 00:10:25.040 It will affect all future budgets and therefore, although we don't need to get into the personnel 00:10:25.040 --> 00:10:31.720 issue, we need to get into the policy of what is our, what is the city's decision, what 00:10:31.720 --> 00:10:39.320 are the city's decision going to be handling employees with lawsuits as it affects the 00:10:39.320 --> 00:10:40.320 budget? 00:10:40.320 --> 00:10:44.160 Does that make sense? 00:10:44.160 --> 00:10:49.280 And Tony, typically in, from the accounting perspective, the fund that is affected is 00:10:49.280 --> 00:10:52.600 usually the one charged so. 00:10:52.600 --> 00:10:53.600 That is correct. 00:10:53.600 --> 00:10:56.040 Obviously there's insurance implications as well. 00:10:56.040 --> 00:11:02.480 We do have business practice insurance, but generally speaking, a lot of these expenses 00:11:02.480 --> 00:11:06.560 will come out of the city's risk fund that ultimately ends up being allocated back out 00:11:06.560 --> 00:11:09.960 to the, to the respective fund. 00:11:09.960 --> 00:11:15.040 However, depending on the amount that we may be talking about, it could come directly out 00:11:15.040 --> 00:11:16.040 of the utilities. 00:11:16.040 --> 00:11:20.400 I mean, ultimately in this particular one, it'll, it'll be the electric fund that would 00:11:20.400 --> 00:11:24.600 be burdened with any, any expenditure. 00:11:24.600 --> 00:11:29.680 All right. 00:11:29.680 --> 00:11:31.360 Is it clear what we're asking Larry? 00:11:31.360 --> 00:11:32.360 Yes. 00:11:32.360 --> 00:11:33.360 Okay. 00:11:33.360 --> 00:11:34.360 All right. 00:11:34.360 --> 00:11:40.520 And I, I do need to tell you that we need to be done by 10 30 because the city council 00:11:40.520 --> 00:11:41.520 is meeting today. 00:11:41.520 --> 00:11:45.560 So let's move on to concluding items. 00:11:45.560 --> 00:11:50.760 Does any board member wish to have an item added to the future agenda or have any comments 00:11:50.760 --> 00:11:51.760 to make? 00:11:51.760 --> 00:11:55.440 I see none. 00:11:55.440 --> 00:12:00.740 So let's move on to the work session and receive a report, hold a discussion and give direction 00:12:00.740 --> 00:12:06.960 to the water wastewater drainage and solid waste and fiscal year 2021 proposed budget 00:12:06.960 --> 00:12:11.520 capital improvement program and five year financial forecast. 00:12:11.520 --> 00:12:15.120 So PB members will turn this over to Nick Vincent. 00:12:15.120 --> 00:12:16.120 Good morning. 00:12:16.120 --> 00:12:19.080 PB members, chair and Nick Vincent assistant finance director. 00:12:19.080 --> 00:12:23.360 First of all, I want to thank everybody for being here today for this special called meeting. 00:12:23.360 --> 00:12:28.520 We do have three budget presentations to go through the water utility, wastewater utility 00:12:28.520 --> 00:12:33.040 and solid waste and each of the presentations are broken into two different discussions. 00:12:33.040 --> 00:12:37.400 The first part of the presentation is an operational discussion and at the end of that, there'll 00:12:37.400 --> 00:12:41.120 be a slide for questions and then I'll return to the podium to go through the finances for 00:12:41.120 --> 00:12:42.120 each utility. 00:12:42.120 --> 00:12:55.880 With that, I'll turn it over to Frank Pugsley to go for water. 00:12:55.880 --> 00:12:56.880 Thank you, Nick. 00:12:56.880 --> 00:12:59.240 Good morning, Madam Chair, PB members. 00:12:59.240 --> 00:13:04.400 I am Frank Pugsley, the water and wastewater utilities director here to discuss the operational 00:13:04.400 --> 00:13:12.360 portion of the water utilities fiscal year '21 budget presentation. 00:13:12.360 --> 00:13:19.560 I'd like to start with a few accomplishments and future goals. 00:13:19.560 --> 00:13:23.280 Just kind of hit a few highlights if you have any specific questions on any of these, please 00:13:23.280 --> 00:13:26.480 don't hesitate to ask in the Q&A portion. 00:13:26.480 --> 00:13:31.140 We do have a couple of significant projects ongoing at the Louisville Water Treatment 00:13:31.140 --> 00:13:37.880 Plant for some major upgrades and as well as zebra mussel control and we have two major 00:13:37.880 --> 00:13:43.240 water transmission projects in the All Red John Payne Main and the North South Water 00:13:43.240 --> 00:13:47.640 Transmission Main, which will significantly increase our ability to move water from the 00:13:47.640 --> 00:13:52.560 north side of town to the south side of town, generally along Bonnie Bray and All Red Road. 00:13:52.560 --> 00:14:00.840 Some of our future goals in this next fiscal year, we intend to enter into a project to 00:14:00.840 --> 00:14:05.000 study advanced metering infrastructure for water distribution that'd be similar to the 00:14:05.000 --> 00:14:09.400 smart meters for electric, so we're going to start investigating that and see what may 00:14:09.400 --> 00:14:12.640 or may not be the best options for us in the future. 00:14:12.640 --> 00:14:18.640 And we also intend to continue to make full use of our asset management program that we 00:14:18.640 --> 00:14:23.960 completed this past fiscal year to make sure we are replacing the right pipes at the right 00:14:23.960 --> 00:14:29.420 time in their life cycle, as well as coordinating those conditions of those pipes with the street 00:14:29.420 --> 00:14:35.720 condition index so that we can touch the streets as few times as practical. 00:14:35.720 --> 00:14:40.680 Some of our philosophical changes that we've had over the past 12 to 18 months, we've really 00:14:40.680 --> 00:14:46.980 spent a lot of time really focusing on culture building as we've begun to lose a lot of long 00:14:46.980 --> 00:14:48.480 tenured employees. 00:14:48.480 --> 00:14:53.760 We started breaking down silos and really working on process and functional integration 00:14:53.760 --> 00:15:00.200 with other departments in the city, including tech services, IT, public works, capital projects, 00:15:00.200 --> 00:15:05.480 so we are actually, I think, doing a lot more today than we have done in recent history 00:15:05.480 --> 00:15:11.480 with fewer people, you know, tighter budgets, and in light of a pandemic, we're still being 00:15:11.480 --> 00:15:13.680 extremely successful. 00:15:13.680 --> 00:15:19.900 Some of our planning and cost saving items, as you probably are aware, we are intending 00:15:19.900 --> 00:15:23.920 on expanding the Ray Roberts water treatment plant significantly. 00:15:23.920 --> 00:15:29.320 The current planned expansion was for 30 million gallons per day, increasing above the current 00:15:29.320 --> 00:15:31.840 20MGD capacity. 00:15:31.840 --> 00:15:38.240 Through a capacity upgrade process that we're going to pursue with the TCEQ, we're actually 00:15:38.240 --> 00:15:45.760 able to push back the major 30MGD upgrade to be online around 2029 or 2030. 00:15:45.760 --> 00:15:49.360 So that major upgrade will be the $100 million project you've been hearing about, but we 00:15:49.360 --> 00:15:55.200 think we can get an extra 5MGD to 10MGD out of the current plant and the current processes 00:15:55.200 --> 00:16:01.880 within current TCEQ regulations, so that way we can utilize that plant to its full capacity. 00:16:01.880 --> 00:16:06.800 That has kind of a secondary benefit, and that 30MGD expansion would then be somewhere 00:16:06.800 --> 00:16:13.760 between, you know, 37 to 45MGD for about the same cost, so we're actually getting a two 00:16:13.760 --> 00:16:15.880 for one there in some ways. 00:16:15.880 --> 00:16:20.360 Here's some operational data from our water production. 00:16:20.360 --> 00:16:24.440 The gray shaded area is our five-year average of monthly water production. 00:16:24.440 --> 00:16:30.180 The kind of brown-orange line at the top was our 2020 fiscal year budget for water production. 00:16:30.180 --> 00:16:33.800 The green line was last fiscal year, and the blue line is this fiscal year. 00:16:33.800 --> 00:16:39.560 As you can see, we've kind of been at or just near our budgeted amounts this year, adjusting 00:16:39.560 --> 00:16:40.560 for weather. 00:16:40.560 --> 00:16:46.320 We're doing fairly well, and we finished July basically right in between last fiscal year 00:16:46.320 --> 00:16:53.540 and our budget, so we're doing pretty well on the water production side. 00:16:53.540 --> 00:16:57.820 Operational data for the water distribution and asset management groups. 00:16:57.820 --> 00:17:01.360 We intend to flush 11,000 hydrants this year. 00:17:01.360 --> 00:17:04.460 That is, on average, each hydrant about twice a year. 00:17:04.460 --> 00:17:11.760 We have just over 5,000 hydrants in the city, and additionally replace 3,200 meters. 00:17:11.760 --> 00:17:17.520 And for our system major maintenance, which is our replacement of some of our aging lines, 00:17:17.520 --> 00:17:25.260 this fiscal year, we've set a minimum goal to replace 29 or 24,000 linear feet. 00:17:25.260 --> 00:17:29.080 That's based on our new asset management program we've started this year. 00:17:29.080 --> 00:17:34.240 And in order to accomplish that, we've really partnered heavily with Streets and Public Works 00:17:34.240 --> 00:17:38.600 and the Capital Projects Group to outsource that additional replacement. 00:17:38.600 --> 00:17:42.680 So you can see in past fiscal years, we've outsourced very little system replacement, 00:17:42.680 --> 00:17:46.680 whereas this fiscal year, we're nearly 30,000 feet of outsourced lines. 00:17:46.680 --> 00:17:52.760 So we're far exceeding that amount this year, close to 44,000, and then we're going to increase 00:17:52.760 --> 00:17:59.000 that goal next year as we really work together with the Streets program to push that to about 00:17:59.000 --> 00:18:01.120 46,000 feet. 00:18:01.120 --> 00:18:06.240 The benefit we see here is that we can turn outsourcing of this major maintenance on and 00:18:06.240 --> 00:18:07.240 off. 00:18:07.240 --> 00:18:12.000 We really can't outsource emergencies or some of the minor maintenance activities. 00:18:12.000 --> 00:18:17.960 So we're able to keep our core in-house crews fully utilized and fully busy while we can 00:18:17.960 --> 00:18:25.340 turn up and down the outsourcing and still meet our 24,000-foot goal. 00:18:25.340 --> 00:18:31.520 In view of the FTE summary, our full-time employees, we began this year with 107.5. 00:18:31.520 --> 00:18:39.840 We had 18.5 vacancies, including DSP departures, and we were approved to refill 12 and a half 00:18:39.840 --> 00:18:45.480 of those, leaving us with 101 and a half FTEs going into next fiscal year. 00:18:45.480 --> 00:18:50.220 And that salary savings for next fiscal year is about 540,000. 00:18:50.220 --> 00:18:54.400 And you'll see the positions that were eliminated from the budget listed there in the bulleted 00:18:54.400 --> 00:18:59.680 list, and we've done all this really with no reductions in level of service. 00:18:59.680 --> 00:19:01.280 The plants are still operating well. 00:19:01.280 --> 00:19:06.400 We're still completing our system replacement and our minor maintenance. 00:19:06.400 --> 00:19:11.520 We're very proud of our ability to continue to work at a high level with fewer staff and 00:19:11.520 --> 00:19:15.560 more efficiently. 00:19:15.560 --> 00:19:19.840 The organizational chart for the utilities, you'll see here broken down in basically functional 00:19:19.840 --> 00:19:20.840 areas. 00:19:20.840 --> 00:19:25.280 We're familiar with our general manager of utilities, Kenny Banks, and his six direct 00:19:25.280 --> 00:19:30.120 reports are listed there with their functional responsibilities. 00:19:30.120 --> 00:19:33.600 I will just note, and I'll probably note it again in the wastewater presentation, you'll 00:19:33.600 --> 00:19:37.440 see the red box around the Clear Creek Natural Heritage Center. 00:19:37.440 --> 00:19:42.800 The educational programming components of Clear Creek, as well as the Sustainable Schools 00:19:42.800 --> 00:19:48.720 Program have been shifted to the Parks Department, so Gary will provide more details on that 00:19:48.720 --> 00:19:51.240 in his presentation. 00:19:51.240 --> 00:19:59.120 With that, I will open it up to any questions on the operational aspects of the water utility. 00:19:59.120 --> 00:20:00.120 Questions of the board? 00:20:00.120 --> 00:20:01.120 Yes, sir. 00:20:01.120 --> 00:20:03.120 Does anyone have a question? 00:20:03.120 --> 00:20:06.560 Frank, on your operational data, slide number four. 00:20:06.560 --> 00:20:07.560 Yes, sir. 00:20:07.560 --> 00:20:15.000 The increase in water produced between June of '19 and this year is roughly, according 00:20:15.000 --> 00:20:22.840 to the way I read it, around 140 million gallons, something like that, which is about a 24% 00:20:22.840 --> 00:20:23.840 increase. 00:20:23.840 --> 00:20:26.440 That's a pretty big jump. 00:20:26.440 --> 00:20:29.080 What's the reason for that increase? 00:20:29.080 --> 00:20:33.000 I don't have the data right in front of me, but I think if we all can rack our brains, 00:20:33.000 --> 00:20:36.880 we can remember last spring into summer, it was a very wet year. 00:20:36.880 --> 00:20:41.840 We really didn't see that uptick in water production until August and September, so 00:20:41.840 --> 00:20:46.280 we really made up a lot of ground in late July, August, and September of last year. 00:20:46.280 --> 00:20:50.080 Up until June, it was just rain and cats and dogs, and we weren't seeing the irrigation 00:20:50.080 --> 00:20:53.280 demand that we are this year. 00:20:53.280 --> 00:20:57.440 Then you're relying more on the five-year average than just last year? 00:20:57.440 --> 00:20:58.440 Correct. 00:20:58.440 --> 00:21:01.560 Yeah, we like to compare to the five-year average because obviously with growth, we'd 00:21:01.560 --> 00:21:08.080 like to see our production continue to increase in accordance with our plans. 00:21:08.080 --> 00:21:13.160 What do you think the main reason for the increase is lawn sprinklers, basically? 00:21:13.160 --> 00:21:17.120 Yes, it's primarily driven by weather. 00:21:17.120 --> 00:21:21.680 We had a pretty hot and dry June compared to last year. 00:21:21.680 --> 00:21:22.820 How close are you? 00:21:22.820 --> 00:21:28.840 You talked about the upcoming plant capacity increases, and it's going to come online. 00:21:28.840 --> 00:21:32.200 How close are you now to your capacity? 00:21:32.200 --> 00:21:39.600 Our peak day that we've experienced all time, I believe, is in the 37 to 39 MGD range. 00:21:39.600 --> 00:21:45.760 We have 28 or 29 MGD of capacity at the Lewisville plant plus the 20 at Bray Roberts. 00:21:45.760 --> 00:21:50.280 We have 49, almost 50 MGD of capacity. 00:21:50.280 --> 00:21:57.200 We have about 11 MGD of spare capacity today, but with the Hunter and Coal Ranch developments, 00:21:57.200 --> 00:22:02.320 as well as any renewed interest in development in the city of Denton, that additional spare 00:22:02.320 --> 00:22:07.240 capacity that we have right now will be consumed, we expect, in the next decade. 00:22:07.240 --> 00:22:09.360 Okay, thanks. 00:22:09.360 --> 00:22:13.160 Barbara, go ahead. 00:22:13.160 --> 00:22:16.360 In the past, the zebra mussels have been a big issue. 00:22:16.360 --> 00:22:18.200 Are we making improvements? 00:22:18.200 --> 00:22:20.800 Are we getting a hold of that better? 00:22:20.800 --> 00:22:26.740 Yes, so part of those Lake Lewisville upgrade projects are some zebra mussel control technologies 00:22:26.740 --> 00:22:31.640 at both raw water intakes at Bray Roberts and at Lewisville Lake. 00:22:31.640 --> 00:22:34.640 One of the things that's interesting about zebra mussels, you may have seen in the news 00:22:34.640 --> 00:22:39.040 this week that grapevine has now been determined to be fully infested. 00:22:39.040 --> 00:22:41.680 Bray Roberts and Lewisville already are. 00:22:41.680 --> 00:22:46.360 Whenever we see the initial surge in zebra mussels, it seems like their population peaks 00:22:46.360 --> 00:22:48.880 and then begins to subside. 00:22:48.880 --> 00:22:53.840 We haven't had too many issues with them in the last several years. 00:22:53.840 --> 00:22:59.680 Whenever we go into Bray Roberts, we're having a major upgrade project between now and the 00:22:59.680 --> 00:23:00.680 capacity expansion. 00:23:00.680 --> 00:23:04.480 We'll go in and we'll clean our raw water line out, because we probably will find some 00:23:04.480 --> 00:23:07.080 accumulation of shells in the line. 00:23:07.080 --> 00:23:09.040 Thank you. 00:23:09.040 --> 00:23:10.760 Any other questions? 00:23:10.760 --> 00:23:11.760 Go ahead. 00:23:11.760 --> 00:23:20.160 Yeah, I'd just like to make a remark about your goals and congratulate you on the improved 00:23:20.160 --> 00:23:25.120 communication and collaboration and, as you say, the breaking down of silos. 00:23:25.120 --> 00:23:29.540 I think this is very healthy that the more inner communication on various projects and 00:23:29.540 --> 00:23:35.080 initiatives and strategies between various departments is very good, because the more 00:23:35.080 --> 00:23:38.080 brains the more ideas for sure. 00:23:38.080 --> 00:23:39.080 Thank you. 00:23:39.080 --> 00:23:40.080 Thank you. 00:23:40.080 --> 00:23:43.280 Yeah, we're trying to be as efficient as we possibly can, so we're not, you know, we know 00:23:43.280 --> 00:23:48.240 the right hand and left hand need to know what each other are doing so we can cooperate. 00:23:48.240 --> 00:23:50.400 And Frank, is that why we're increasing? 00:23:50.400 --> 00:23:54.920 I know you've got it in the slide, but I just want the public to hear it, that we're increasing 00:23:54.920 --> 00:23:59.760 what we used to do in street rehabilitations to about 46,000, and that's because we're 00:23:59.760 --> 00:24:02.400 aligning with the street projects that are going on. 00:24:02.400 --> 00:24:07.320 So when they tear up the street, we're going in and we're doing utilities, so it's more 00:24:07.320 --> 00:24:12.160 coordinated and we're not tearing up a good street to put in utilities. 00:24:12.160 --> 00:24:13.160 Correct. 00:24:13.160 --> 00:24:17.400 Yes, we are definitely coordinating heavily with the street replacement program. 00:24:17.400 --> 00:24:22.120 And you know, we're looking also very intently on the condition and criticality of the utilities 00:24:22.120 --> 00:24:23.440 in that street. 00:24:23.440 --> 00:24:28.560 If we feel like they have ample life left that we don't need to replace them today, 00:24:28.560 --> 00:24:31.560 we're not going to throw good money in replacing good pipes. 00:24:31.560 --> 00:24:35.400 We'll let the street project go and we'll plan to come back in, you know, 15 or 20 years 00:24:35.400 --> 00:24:38.200 to replace the utilities when the next street project comes through. 00:24:38.200 --> 00:24:42.560 So we're definitely trying to synchronize all that so we minimize the impacts to the 00:24:42.560 --> 00:24:46.080 residents and to, like you said, we don't want to tear up a good street. 00:24:46.080 --> 00:24:47.640 Good idea. 00:24:47.640 --> 00:24:49.680 Oh, Karen. 00:24:49.680 --> 00:24:55.980 I was just noticing on page six, you're eliminating an auditor position. 00:24:55.980 --> 00:25:00.560 How many auditors do you currently have? 00:25:00.560 --> 00:25:10.600 If Kenny Banks is on the line, I'll let him tackle that question. 00:25:10.600 --> 00:25:11.600 Good morning, board members. 00:25:11.600 --> 00:25:14.440 This is Ken Banks, general manager of utilities. 00:25:14.440 --> 00:25:15.440 Can you hear me? 00:25:15.440 --> 00:25:16.440 Yes. 00:25:16.440 --> 00:25:17.440 Yes. 00:25:17.440 --> 00:25:18.440 Good morning. 00:25:18.440 --> 00:25:30.560 To address your question, we have had a single auditor position and it's really that position 00:25:30.560 --> 00:25:35.840 over time has changed more into a business manager position. 00:25:35.840 --> 00:25:43.080 So that title was retooled this year and we have made that into a business management 00:25:43.080 --> 00:25:44.080 position. 00:25:44.080 --> 00:25:50.880 So we had one that did some auditing, but predominantly was dealing with performance 00:25:50.880 --> 00:25:54.400 measures, business metrics, et cetera. 00:25:54.400 --> 00:25:57.160 And now we have essentially the same function. 00:25:57.160 --> 00:26:03.320 It's just more the title is more aligned with what the job actually does. 00:26:03.320 --> 00:26:07.440 So you have zero auditors then? 00:26:07.440 --> 00:26:08.440 That is correct. 00:26:08.440 --> 00:26:12.560 Having a formal auditor in the utilities, we do not have one. 00:26:12.560 --> 00:26:16.240 We have an overall city auditing program. 00:26:16.240 --> 00:26:25.320 So we didn't want to have any overlap there and so this is basically just a business management 00:26:25.320 --> 00:26:26.320 position. 00:26:26.320 --> 00:26:27.320 Okay. 00:26:27.320 --> 00:26:28.320 Thank you. 00:26:28.320 --> 00:26:32.160 So to make it clear, the internal auditor's office is still looking at your department. 00:26:32.160 --> 00:26:33.160 Yes. 00:26:33.160 --> 00:26:39.840 I mean, the internal auditor's department examines all aspects of city operations and utilities 00:26:39.840 --> 00:26:43.880 has certainly been one that they've looked at on a variety of programs. 00:26:43.880 --> 00:26:47.520 Billy, did you have a question or no? 00:26:47.520 --> 00:26:48.520 Yeah. 00:26:48.520 --> 00:26:55.200 I'm going to comment as a whole, it's not just for water, it's for all the utility budget 00:26:55.200 --> 00:27:00.160 presentations. 00:27:00.160 --> 00:27:04.400 We're not looking at a preliminary budget, we're looking at a presentation. 00:27:04.400 --> 00:27:06.760 We don't really see the details. 00:27:06.760 --> 00:27:12.000 There's a number for capital expenditure, but there is no detail as to what those, and 00:27:12.000 --> 00:27:20.720 I mean purchases of equipment, vehicles, improvements, there's no details of those items. 00:27:20.720 --> 00:27:23.940 Council sees this in a few minutes. 00:27:23.940 --> 00:27:30.920 I really can't give any good advice without any detail and I'm not saying anything against 00:27:30.920 --> 00:27:31.920 staff. 00:27:31.920 --> 00:27:39.560 I think this is, seems to be the philosophy at the city right now, is that there's no 00:27:39.560 --> 00:27:42.360 reason to get the board to any detail. 00:27:42.360 --> 00:27:46.760 So if there's no reason to give the board to any detail or time to consider these things 00:27:46.760 --> 00:27:52.800 and looking at preliminary budget, how can we possibly advise the council? 00:27:52.800 --> 00:27:55.000 I think the answer is we can't. 00:27:55.000 --> 00:28:00.440 I don't see any way to be able to give advice to the council. 00:28:00.440 --> 00:28:05.800 If we don't get preliminary budgets with detail and discussion. 00:28:05.800 --> 00:28:12.880 And in previous years, I think Nick's going to respond, what the process is for this year. 00:28:12.880 --> 00:28:17.320 Yes, Mr. Cheek, and I should have mentioned that earlier and for all the board members, 00:28:17.320 --> 00:28:22.000 this is fully the intent of the finance department, the city management team and the utilities 00:28:22.000 --> 00:28:26.240 was to take an abbreviated budget presentation forward for the utilities. 00:28:26.240 --> 00:28:29.300 What we'll do, and you'll see this is part of the financial discussion, we do fully intend 00:28:29.300 --> 00:28:33.680 to circle back with the public utility board and city council to have that detailed budget 00:28:33.680 --> 00:28:35.440 discussion that you're talking about. 00:28:35.440 --> 00:28:38.760 So to talk about raise, to talk about the capital plan in detail and to talk about the 00:28:38.760 --> 00:28:39.760 operating budget. 00:28:39.760 --> 00:28:42.440 Yeah, it's obvious third. 00:28:42.440 --> 00:28:43.960 So I think that's what I'm saying. 00:28:43.960 --> 00:28:45.760 I think it's going to be redundant. 00:28:45.760 --> 00:28:48.840 And all of a sudden we get a detailed budget and go to prove this place. 00:28:48.840 --> 00:28:56.440 I mean, I would assume, and I shouldn't, that we'd get this budget detail before the council 00:28:56.440 --> 00:29:01.400 sees it, because there's so many items now that we're getting either after council's 00:29:01.400 --> 00:29:03.080 already approved it. 00:29:03.080 --> 00:29:05.680 So what's the use in presenting it to the PUB? 00:29:05.680 --> 00:29:10.120 I think it's a bad philosophy. 00:29:10.120 --> 00:29:12.640 There's no reason to have the boards or commissions. 00:29:12.640 --> 00:29:13.800 There's zero reason. 00:29:13.800 --> 00:29:17.800 We have no, I'm not blaming you, Frank, I'm not blaming the staff at all. 00:29:17.800 --> 00:29:21.360 I think it's a philosophy and it comes from the top down. 00:29:21.360 --> 00:29:24.680 There's no reason for us to have these boards and commissions that we don't have time to 00:29:24.680 --> 00:29:27.880 go over the detail and how it affects the city. 00:29:27.880 --> 00:29:32.240 Well, Billy, I would just say that we do, again, as Nick said, we do plan to circle 00:29:32.240 --> 00:29:35.880 back with the PUB with all the detail on the budget. 00:29:35.880 --> 00:29:42.520 I think that the reason why we're doing this today is because of the pandemic. 00:29:42.520 --> 00:29:46.440 We've certainly over the last several months have been concentrating on that. 00:29:46.440 --> 00:29:51.480 And so we do plan to come back to the PUB with all the detail, giving ample time to 00:29:51.480 --> 00:29:54.960 consider that and then be able to make a recommendation back to council. 00:29:54.960 --> 00:29:58.400 We're not asking you for a recommendation to the council today. 00:29:58.400 --> 00:30:01.440 This is simply a work session, but we do plan to do that. 00:30:01.440 --> 00:30:06.280 And again, it's because of where we are with the pandemic and where we were with the budget, 00:30:06.280 --> 00:30:07.280 a lot of uncertainty. 00:30:07.280 --> 00:30:11.920 And it's only been in the last couple of weeks that we really had a better idea of where 00:30:11.920 --> 00:30:14.520 we were headed and what the impact had been. 00:30:14.520 --> 00:30:20.880 We've been very open with the PUB and the council that there's a delay in when we knew 00:30:20.880 --> 00:30:24.800 that when we would know what the financial impact was, was going to be from the pandemic. 00:30:24.800 --> 00:30:26.800 And so that's why we're here today. 00:30:26.800 --> 00:30:27.800 Okay. 00:30:27.800 --> 00:30:31.360 It was the same way last year too, Tony, is what I'm saying. 00:30:31.360 --> 00:30:38.000 So I mean, this is no change and we're on, we have electronics, there is detail to the 00:30:38.000 --> 00:30:39.000 budget, I'm sure. 00:30:39.000 --> 00:30:43.040 Otherwise you can't formulate these numbers, they've got to come from somewhere. 00:30:43.040 --> 00:30:47.360 And I don't understand the reason why that's not included in the agenda pack. 00:30:47.360 --> 00:30:48.360 I really don't. 00:30:48.360 --> 00:30:50.800 And Mr. Sheik, this is Nick again. 00:30:50.800 --> 00:30:54.040 We can get that information to you prior to budget adoption. 00:30:54.040 --> 00:30:57.000 We're not actually seeking any new formal direction from PUB today. 00:30:57.000 --> 00:31:02.040 It's eventually intent to be an informational session to update the PUB where we are. 00:31:02.040 --> 00:31:05.720 So before budget adoption and before we ask you to take any action on the budget or rates, 00:31:05.720 --> 00:31:08.040 we'll get you a detailed budget where you can look at. 00:31:08.040 --> 00:31:09.040 Okay. 00:31:09.040 --> 00:31:10.040 And I appreciate that, Nick. 00:31:10.040 --> 00:31:11.040 I really do. 00:31:11.040 --> 00:31:15.920 What I'm saying is a few years ago, you know, this may be the way we used to do it thing, 00:31:15.920 --> 00:31:19.720 which everybody hates, we said that, but we had budget season. 00:31:19.720 --> 00:31:22.560 It wasn't just a budget presentation. 00:31:22.560 --> 00:31:28.080 Budget season started in the spring and the board would see the details starting in the 00:31:28.080 --> 00:31:31.960 spring and start having discussions about, hey, what do we want to do with this section? 00:31:31.960 --> 00:31:35.720 Today's water, we're going to go over some of the water deals. 00:31:35.720 --> 00:31:39.360 Two weeks later, we go over solid waste and vice versa. 00:31:39.360 --> 00:31:41.880 I'm just telling you, I don't believe in the philosophy. 00:31:41.880 --> 00:31:46.000 I think the boards and commissions become useless at this point if we don't have time 00:31:46.000 --> 00:31:48.500 to go over the budget. 00:31:48.500 --> 00:31:50.620 And I'll leave it at that. 00:31:50.620 --> 00:31:57.160 For the record, I'll agree with Billy's comment and also add a couple of things. 00:31:57.160 --> 00:32:05.080 I know in our last meeting, we had roughly 400 pages of detail and we got those details 00:32:05.080 --> 00:32:10.840 on Friday morning, maybe Thursday night, but typically Friday morning and we have our meeting 00:32:10.840 --> 00:32:12.360 on Monday morning. 00:32:12.360 --> 00:32:18.360 400 pages is a lot of detail to review in 72 hours. 00:32:18.360 --> 00:32:23.560 And I realize that that 72 hours is a minimum for the public posting, but I don't believe 00:32:23.560 --> 00:32:29.540 there's anything wrong with providing it to the members of the PUB a little earlier so 00:32:29.540 --> 00:32:32.960 that we can have a little bit of time to work. 00:32:32.960 --> 00:32:40.200 And I think a perfect example of Billy's comment is I'm aware that historically at Lake Ray 00:32:40.200 --> 00:32:46.460 Roberts, we had some hydroelectric production capability and that that has been shuttered 00:32:46.460 --> 00:32:54.280 for a number of years, but there is a little bit of hydroelectric capability there. 00:32:54.280 --> 00:33:01.120 That would be something to include in this level of discussion at the PUB work session. 00:33:01.120 --> 00:33:06.540 If we had several iterations and could have open discussions about this rather than such 00:33:06.540 --> 00:33:13.580 formalized presentation, the idea of adding some hydroelectric to our mix seems really 00:33:13.580 --> 00:33:18.180 desirable to me and a former director of utilities was the one who made me aware of it. 00:33:18.180 --> 00:33:23.960 So that's an example of something that could be brought to light and we could have a discussion 00:33:23.960 --> 00:33:24.960 about it. 00:33:24.960 --> 00:33:29.880 It may be that it's unfeasible as heck, that's fine, but the idea of power we don't have 00:33:29.880 --> 00:33:34.600 to pay five kilowatt of would be pretty desirable. 00:33:34.600 --> 00:33:37.600 Other comments? 00:33:37.600 --> 00:33:40.680 Yes, Ed, go ahead. 00:33:40.680 --> 00:33:48.800 I'd just like to say is with Mr. Cheek's institutional memory, having seen a lot of what's gone down 00:33:48.800 --> 00:33:59.820 obviously in this on this board, I strongly support examining the means of dissemination 00:33:59.820 --> 00:34:01.760 of the information. 00:34:01.760 --> 00:34:07.680 So because it's just in my short time, it is pretty, pretty some of these agendas and 00:34:07.680 --> 00:34:12.880 backup materials that you get on Friday and you have to get ready for Monday. 00:34:12.880 --> 00:34:17.760 It's pretty, pretty daunting sometimes and especially something like the budget. 00:34:17.760 --> 00:34:25.320 I see absolutely no reason not to more compartmentalize presentations over an organized schedules. 00:34:25.320 --> 00:34:29.720 And I think what he said about budget season is the perfect analogy for this. 00:34:29.720 --> 00:34:35.320 I think it's a very, very important, obviously very important subject that requires, I think 00:34:35.320 --> 00:34:40.000 a little more depth in presentation and discussion from us. 00:34:40.000 --> 00:34:41.000 Thank you. 00:34:41.000 --> 00:34:43.040 And we did used to get more detailed. 00:34:43.040 --> 00:34:46.520 Barbara, you and I were both on here a few years ago. 00:34:46.520 --> 00:34:53.360 I mean, it would be detailed presentation, two weeks, then you, you know, so you had 00:34:53.360 --> 00:34:59.100 time to digest and ask questions before we came back. 00:34:59.100 --> 00:35:03.520 And I know this is an unusual year, but like Billy said, maybe last year, maybe we didn't 00:35:03.520 --> 00:35:04.520 have it either. 00:35:04.520 --> 00:35:09.480 I'm not really remembering and have to go back and look, the years begin to blend. 00:35:09.480 --> 00:35:15.440 So Susan, let us, let us take this feedback back and, and take a look at what we've done 00:35:15.440 --> 00:35:19.200 in the past and kind of where we are today and let's even come back with some additional 00:35:19.200 --> 00:35:23.360 recommendations, obviously maybe too late for this year, but certainly going into next 00:35:23.360 --> 00:35:24.360 year. 00:35:24.360 --> 00:35:25.360 And this year is a little different. 00:35:25.360 --> 00:35:26.360 I understand. 00:35:26.360 --> 00:35:27.360 Yeah. 00:35:27.360 --> 00:35:28.360 Karen had a question. 00:35:28.360 --> 00:35:31.960 Yeah, I just wanted to follow up on Ed's comment. 00:35:31.960 --> 00:35:38.480 And I only have two years institutional memory on this board, but I've got 13 years of institutional 00:35:38.480 --> 00:35:46.140 memory on other boards and the whole issue of the 72 hour notice has come up every time. 00:35:46.140 --> 00:35:53.160 I've been on, I've been on commissions where I'm representing a neighborhood and I need 00:35:53.160 --> 00:35:59.600 to give my constituents time to go to the torch and pitchfork store, you know, to get 00:35:59.600 --> 00:36:04.720 ready for the meeting next week so that they can attend the meeting prepared. 00:36:04.720 --> 00:36:05.720 And it was very frustrating. 00:36:05.720 --> 00:36:12.480 And we did manage to get staff to bump information to the previous Wednesday, just if something 00:36:12.480 --> 00:36:19.120 came up that was going to be controversial, the commission could get information a little 00:36:19.120 --> 00:36:21.480 bit earlier. 00:36:21.480 --> 00:36:24.800 But that took probably two years. 00:36:24.800 --> 00:36:30.560 So this might be something that needs to come up at the city level or, you know, with boards 00:36:30.560 --> 00:36:38.080 and commissions as a whole, because nobody can do much in 72 hours, especially if there's 00:36:38.080 --> 00:36:44.000 going to be a public hearing and you need to get people prepared to present. 00:36:44.000 --> 00:36:51.680 So this might be a discussion for, you know, a longer discussion and more general discussion. 00:36:51.680 --> 00:36:58.000 72 hours is just not, you know, we're sleeping for 40 some of those. 00:36:58.000 --> 00:37:01.920 So we need more time. 00:37:01.920 --> 00:37:03.160 All right. 00:37:03.160 --> 00:37:10.760 I agree with that so much, even even when I was on another commission, we had five days 00:37:10.760 --> 00:37:14.880 and this turnaround, you've got to be absorbed. 00:37:14.880 --> 00:37:18.720 If you want to go out and look at something that's mentioned in this, it doesn't leave 00:37:18.720 --> 00:37:20.280 you time to do research. 00:37:20.280 --> 00:37:22.680 And so that would be great. 00:37:22.680 --> 00:37:29.320 And regarding the budget, seems like this is my first time now, but previously when 00:37:29.320 --> 00:37:33.640 I was on, we would take one at a time and discuss it. 00:37:33.640 --> 00:37:38.800 I know this year's different and I thought, well, maybe this is the new normal here, but 00:37:38.800 --> 00:37:40.360 it didn't used to be that way. 00:37:40.360 --> 00:37:46.000 So anyway, I agree with the remarks that have been made. 00:37:46.000 --> 00:37:47.000 All right. 00:37:47.000 --> 00:37:48.000 With that. 00:37:48.000 --> 00:37:49.000 Go ahead, Nick. 00:37:49.000 --> 00:37:52.840 I'll walk you through the budget slides that we do have for you today. 00:37:52.840 --> 00:37:56.960 And of course, we'll follow back up with you on the requested information about a detailed 00:37:56.960 --> 00:37:57.960 discussion. 00:37:57.960 --> 00:38:02.640 So real quick, the financial assumptions we're going to cover today, Frank, you kind of touched 00:38:02.640 --> 00:38:05.080 on this a little bit, the growth in the out years. 00:38:05.080 --> 00:38:09.160 We are currently forecasting a 2% growth in forecasted revenues, and I'll show that to 00:38:09.160 --> 00:38:11.460 you shortly on the forecast. 00:38:11.460 --> 00:38:15.740 We are continuing to utilize impact fee funding to revenue fund projects. 00:38:15.740 --> 00:38:20.200 If you remember last year, we transitioned from using revenue or impact fee funding to 00:38:20.200 --> 00:38:25.320 just offset debt service to actually revenue funding projects to mitigate that cost associated 00:38:25.320 --> 00:38:28.320 with issuing that debt for those projects. 00:38:28.320 --> 00:38:31.800 We do have the Hunter Coal Ranch development included in these forecasts that you will 00:38:31.800 --> 00:38:33.760 see starting near 2024. 00:38:33.760 --> 00:38:38.200 They do start showing up in both the water, wastewater, and solid waste utilities. 00:38:38.200 --> 00:38:42.880 We are forecasting 3% growth in expenses in the out years, and then the Hunter Coal Ranch 00:38:42.880 --> 00:38:45.500 statement I made about revenues. 00:38:45.500 --> 00:38:49.220 We are currently proposing to the board, we do not have to take any action on this today, 00:38:49.220 --> 00:38:53.640 a 2% rate decrease for water customers, so residential and commercial. 00:38:53.640 --> 00:38:57.960 We have a few updates to the rate ordinance we want you to look at today and consider 00:38:57.960 --> 00:39:00.200 in August for adoption. 00:39:00.200 --> 00:39:04.320 These are mostly contractual updates and then anything to do with the rate decrease. 00:39:04.320 --> 00:39:09.040 So we do fully intend to circle back in November, December to discuss the rates further with 00:39:09.040 --> 00:39:10.200 the cost of service study. 00:39:10.200 --> 00:39:13.680 The water utility is currently going through a cost of service study. 00:39:13.680 --> 00:39:17.560 It will be completed by then and we do plan to come back to the PUB and city council to 00:39:17.560 --> 00:39:35.120 update you of where our rates weigh up from a cost of service standpoint. 00:39:35.120 --> 00:39:38.520 So in the past, we had shown you a five-year forecast. 00:39:38.520 --> 00:39:41.720 What we are actually doing this year is showing you a 10-year forecast. 00:39:41.720 --> 00:39:45.520 And to be more transparent about the utility and where we look at or what it looks like 00:39:45.520 --> 00:39:47.680 over the 10-year horizon. 00:39:47.680 --> 00:39:50.560 So a couple of things I want to point out to you, you can see the 2020 adopted budget 00:39:50.560 --> 00:39:54.320 in this column, and this is the current fiscal year we're currently in. 00:39:54.320 --> 00:39:58.120 We do have planned use of reserves about $2.9 million. 00:39:58.120 --> 00:40:01.280 So this budget was adopted by both the PUB and city council. 00:40:01.280 --> 00:40:05.440 There are no rate increases or decreases included in the proposed budget. 00:40:05.440 --> 00:40:09.920 End of year estimate, we are really close to being what we originally intended in the 00:40:09.920 --> 00:40:14.120 budget, about $2.7 or $2.8 million in reserve usage. 00:40:14.120 --> 00:40:19.240 A couple of other things in this reform I want to point out, we do currently have a 00:40:19.240 --> 00:40:23.600 little bit of COVID impact reflected in the water fund of $617,000. 00:40:23.600 --> 00:40:27.400 And this is another reason we do want to circle back with the PUB and city council in November 00:40:27.400 --> 00:40:32.240 and December this year, we'll actually fully understand what the COVID impact or the COVID 00:40:32.240 --> 00:40:36.920 pandemic will have to the utilities at that point, and be able to update the PUB and city 00:40:36.920 --> 00:40:37.920 council accordingly. 00:40:37.920 --> 00:40:41.520 So that's another reason for those discussions coming up. 00:40:41.520 --> 00:40:45.640 And a few other reasons for doing that is our high usage months in the water utility 00:40:45.640 --> 00:40:49.440 typically, you know, tends to be July through September. 00:40:49.440 --> 00:40:53.200 So we'll have that data of kind of where we finished the year and how many bills are outstanding 00:40:53.200 --> 00:40:54.200 at that point. 00:40:54.200 --> 00:40:59.780 Moving to your right-hand side, the 2021 proposed budget, I mean, you can't see it in this column, 00:40:59.780 --> 00:41:02.920 so we have rate revenue of $39.5 million. 00:41:02.920 --> 00:41:06.960 We do have some other revenues in here that you can see, non-rate revenue. 00:41:06.960 --> 00:41:09.640 We have some revenue funding, impact fee funding. 00:41:09.640 --> 00:41:13.200 This is what I mentioned a couple of slides ago, as we are pulling this money into the 00:41:13.200 --> 00:41:17.280 operating fund to revenue funds and impact fee eligible projects. 00:41:17.280 --> 00:41:22.480 We are using some impact fees to offset debt service of eligible projects, about $3.8 million. 00:41:22.480 --> 00:41:25.760 For total resources, about $49 million. 00:41:25.760 --> 00:41:27.760 Expenses are $52.9. 00:41:27.760 --> 00:41:31.580 You can't see we did planned use of reserves about $3.9 million. 00:41:31.580 --> 00:41:35.120 At that point, a couple of slides ago, we are currently proposing a 2% rate decrease 00:41:35.120 --> 00:41:36.840 for the water utility. 00:41:36.840 --> 00:41:39.040 And this is a little bit different than what we showed you last year. 00:41:39.040 --> 00:41:43.040 We had a 2% rate increase in '22 and '23. 00:41:43.040 --> 00:41:47.120 That was before the water utility and the management staff had gone back and looked at 00:41:47.120 --> 00:41:50.880 the capacity of the water treatment plant facility. 00:41:50.880 --> 00:41:54.960 And they plan to do a performance and regulatory upgrade in 2021. 00:41:54.960 --> 00:41:58.840 And what that project does and why it's so important, it actually pushes that lake expansion 00:41:58.840 --> 00:42:00.680 out to the future years. 00:42:00.680 --> 00:42:04.880 So now you can see the construction of the lake expansion is this increase from this 00:42:04.880 --> 00:42:08.720 '11 to '18 is actually out there in '27 and '28. 00:42:08.720 --> 00:42:13.340 So pushing that lake expansion out, allowing more growth to come into the community has 00:42:13.340 --> 00:42:17.660 really improved the financial condition of this fund. 00:42:17.660 --> 00:42:22.320 Moving down the page a little bit further, you can see our operating reserve of $17.7 00:42:22.320 --> 00:42:23.760 million. 00:42:23.760 --> 00:42:26.160 You can see our reserve requirement down here at the bottom. 00:42:26.160 --> 00:42:28.160 We've shown it like this for several years now. 00:42:28.160 --> 00:42:31.720 So you can see the minimum is 120 days or 33%. 00:42:31.720 --> 00:42:34.320 The maximum was 180 days or 50%. 00:42:34.320 --> 00:42:39.940 So you can see that 17.8 or 17.7 falls within that range. 00:42:39.940 --> 00:42:43.320 It continues to be in that range in the 10-year forecast. 00:42:43.320 --> 00:42:49.280 Slightly dropping below out here in the future years, just a couple thousand dollars. 00:42:49.280 --> 00:42:51.880 Quick question on that. 00:42:51.880 --> 00:42:55.120 On the paper you say it's a reserve target. 00:42:55.120 --> 00:42:58.120 You said it was a reserve requirement. 00:42:58.120 --> 00:43:02.960 Is that something imposed by local statute, by state statute? 00:43:02.960 --> 00:43:06.920 No, this is a reserve target for the water utility. 00:43:06.920 --> 00:43:10.720 This target is set by the city utilities and finance department. 00:43:10.720 --> 00:43:14.000 I will tell you the one thing we're going to be doing this winter is not only looking 00:43:14.000 --> 00:43:17.260 at the utilities, but looking at all the funds across the city. 00:43:17.260 --> 00:43:20.720 So any special revenue fund that the city has, any internal service fund, and what should 00:43:20.720 --> 00:43:23.020 that reserve be? 00:43:23.020 --> 00:43:28.040 So hopefully that answers your question, but that is our internal goal is to have that 00:43:28.040 --> 00:43:30.080 reserve between those reserve requirements. 00:43:30.080 --> 00:43:33.320 So that is staff's goal? 00:43:33.320 --> 00:43:38.000 Well, Charlie, I would add that the council does have a, did pass an ordinance adopting 00:43:38.000 --> 00:43:39.760 a fund balance policy. 00:43:39.760 --> 00:43:46.480 And so within that policy, these targets are included in that ordinance. 00:43:46.480 --> 00:43:48.520 Okay. 00:43:48.520 --> 00:43:53.440 So the city council has approved a target, but it's not a requirement? 00:43:53.440 --> 00:43:57.280 Not necessarily a requirement. 00:43:57.280 --> 00:44:03.800 Many of the bond rating agencies do want to look at the health of these funds. 00:44:03.800 --> 00:44:08.120 And so generally they want to make sure that we have adequate reserves to meet our operating 00:44:08.120 --> 00:44:13.760 needs as well as any debts or coverage ratios, which is another measure that's in that financial 00:44:13.760 --> 00:44:14.760 statement. 00:44:14.760 --> 00:44:15.760 Okay. 00:44:15.760 --> 00:44:20.600 For the record, I'm not against the idea of having a good solid target and being physically 00:44:20.600 --> 00:44:21.600 stable. 00:44:21.600 --> 00:44:26.440 I just didn't know whether it was some state imposed requirement or something done by staff, 00:44:26.440 --> 00:44:33.440 or if city council is the correct, that's great. 00:44:33.440 --> 00:44:34.440 Correct. 00:44:34.440 --> 00:44:37.400 Anybody else have any questions or yes, Nick. 00:44:37.400 --> 00:44:38.400 Okay. 00:44:38.400 --> 00:44:39.400 Nick. 00:44:39.400 --> 00:44:40.400 I have a question. 00:44:40.400 --> 00:44:46.120 Can you talk about impact fees a little bit and why you budget projects separately for 00:44:46.120 --> 00:44:47.120 impact fees? 00:44:47.120 --> 00:44:48.120 You bet. 00:44:48.120 --> 00:44:50.040 So that's a great question. 00:44:50.040 --> 00:44:55.520 So the city under when an impact fee study in 2018 in the fall, the winter of 2018, what 00:44:55.520 --> 00:44:59.080 that study does is it looks at any project that the water wastewater utility will do 00:44:59.080 --> 00:45:04.320 that's growth related and those projects are deemed impact fee eligible. 00:45:04.320 --> 00:45:06.760 There is a consumptive use associated with those projects. 00:45:06.760 --> 00:45:11.240 What that consumptive use identifies is how much of that asset can we recover over a 10 00:45:11.240 --> 00:45:12.240 year period? 00:45:12.240 --> 00:45:16.520 The study takes it a step further and it divides the projects into already completed and will 00:45:16.520 --> 00:45:20.720 be completed in a 10 year horizon or a 10 year period. 00:45:20.720 --> 00:45:23.880 So the ones that are completed, of course, we have to fund with debt service. 00:45:23.880 --> 00:45:28.320 We pull that money into the operating fund to offset that eligible debt service. 00:45:28.320 --> 00:45:31.120 Anything that's a future project, we fund that money. 00:45:31.120 --> 00:45:36.460 We fund that project up front using impact fee revenue funding. 00:45:36.460 --> 00:45:40.080 Hopefully that addresses your question. 00:45:40.080 --> 00:45:41.720 I didn't capture it. 00:45:41.720 --> 00:45:44.720 Define for me what an impact fee is. 00:45:44.720 --> 00:45:47.400 What exactly is an impact fee? 00:45:47.400 --> 00:45:48.400 Great question. 00:45:48.400 --> 00:45:54.700 One was to build a house in our community, that is the fee to access to city's water 00:45:54.700 --> 00:45:57.080 infrastructure or wastewater infrastructure. 00:45:57.080 --> 00:46:01.880 So to go out there and to tap onto that wastewater line or that water line, the impact fee is 00:46:01.880 --> 00:46:03.620 that set amount to do that. 00:46:03.620 --> 00:46:08.440 So it will be charged to that household or charged to that developer. 00:46:08.440 --> 00:46:12.480 Okay it's the initial tap fee for one time thing, okay. 00:46:12.480 --> 00:46:15.240 Well tap fee and impact fee are two separate things. 00:46:15.240 --> 00:46:18.280 The water utility does have a tap fee and an impact fee. 00:46:18.280 --> 00:46:20.860 So both of those are charged when someone does tap into the system. 00:46:20.860 --> 00:46:24.800 But yes, there are a tap fee and an impact fee to answer your question. 00:46:24.800 --> 00:46:29.840 And the impact fee is paid by the particular user, correct? 00:46:29.840 --> 00:46:30.840 Yes, sir. 00:46:30.840 --> 00:46:31.840 It would be a user. 00:46:31.840 --> 00:46:32.840 Yeah. 00:46:32.840 --> 00:46:40.520 I have another question about slide 10, your 10 year budget presentation. 00:46:40.520 --> 00:46:43.400 I think I could share it with the group and Larry correct me if I'm wrong, but I think 00:46:43.400 --> 00:46:47.360 I can pull it up and address this question. 00:46:47.360 --> 00:46:56.820 Okay if you look at the adopted 2020 budget numbers for the capital projects, those numbers 00:46:56.820 --> 00:47:01.720 match what you estimate you're going to spend in 2020 also. 00:47:01.720 --> 00:47:08.000 Meaning that the way I read it, you expect to accomplish and spend 100% of what you have 00:47:08.000 --> 00:47:11.120 budgeted for those capital items. 00:47:11.120 --> 00:47:15.080 That's something that has never been done in the last three or four years. 00:47:15.080 --> 00:47:22.640 And that was the issue what I was getting at in the previous action item question about 00:47:22.640 --> 00:47:30.920 why is it that we can identify needed projects, budget for them, sell bonds for them, and 00:47:30.920 --> 00:47:34.300 then not get the project done. 00:47:34.300 --> 00:47:38.360 This year, according to the way I read your numbers, you're going to get 100% of the projects 00:47:38.360 --> 00:47:42.180 done but that's never been done in the last three or four years. 00:47:42.180 --> 00:47:48.560 And my question is, what's changed in 2020 compared to the previous years that will allow 00:47:48.560 --> 00:47:55.600 you to say you're going to get 100% of all these projects done as budgeted? 00:47:55.600 --> 00:47:56.600 >> It's a great question also. 00:47:56.600 --> 00:48:02.160 And then Frank, you come up and address the projects getting completed standpoint. 00:48:02.160 --> 00:48:06.380 From the financial standpoint, right, the 9.3 million Mr. Baffert is talking about is 00:48:06.380 --> 00:48:07.380 calling out here. 00:48:07.380 --> 00:48:09.280 This is the revenue funded capital. 00:48:09.280 --> 00:48:13.120 This represents about one fourth of the water CIP. 00:48:13.120 --> 00:48:17.280 So entire water CIP is 30 to 40 million. 00:48:17.280 --> 00:48:20.880 What we do is we do a couple of different things throughout the year. 00:48:20.880 --> 00:48:25.520 So the PUB and City Council adopts a budget and that budget may include $30 million in 00:48:25.520 --> 00:48:27.440 capital projects. 00:48:27.440 --> 00:48:32.640 Before we actually issue that debt, what we've done in the last few years, staff has taken 00:48:32.640 --> 00:48:35.900 a look at it and said, okay, what can we complete this fiscal year? 00:48:35.900 --> 00:48:41.200 So this year, for example, in the 2020 budget, we had 20 to 30 million in the capital plan. 00:48:41.200 --> 00:48:45.000 Looking back and when Frank and his staff went through those projects, we actually identified 00:48:45.000 --> 00:48:47.520 we did not need to issue any of those bond proceeds. 00:48:47.520 --> 00:48:52.040 But we still do plan to revenue fund some projects as you see called out here. 00:48:52.040 --> 00:48:55.600 A large portion of this revenue funding are field service replacement jobs. 00:48:55.600 --> 00:48:59.680 So I noticed Susan asked the question earlier about those, you know, replacements under 00:48:59.680 --> 00:49:01.880 streets and neighborhoods and such. 00:49:01.880 --> 00:49:04.320 A large portion of that is this. 00:49:04.320 --> 00:49:08.320 But I also have a financial slide in a couple of slides, Mr. Bafford, that will hopefully 00:49:08.320 --> 00:49:13.600 address your capital question a little bit better to kind of show that historical spend 00:49:13.600 --> 00:49:14.600 down. 00:49:14.600 --> 00:49:18.360 Three or four years, you're absolutely correct, three or four years ago, the water utility 00:49:18.360 --> 00:49:23.120 had a large amount of money that was unencumbered and projects were not getting done. 00:49:23.120 --> 00:49:26.800 I thank staff that here lately, those projects have been getting done and we've actually 00:49:26.800 --> 00:49:30.400 drawn down on that amount of money available in the water utility. 00:49:30.400 --> 00:49:33.160 And I'll show that to you shortly in that slide I'm talking about. 00:49:33.160 --> 00:49:36.720 Does that address your question or has you got more operational questions I can get Frank 00:49:36.720 --> 00:49:37.920 to come up and address? 00:49:37.920 --> 00:49:42.600 Oh, I'll look forward to see what you have down the road here. 00:49:42.600 --> 00:49:45.360 And if it doesn't answer your question, we'll be happy to provide you additional detail 00:49:45.360 --> 00:49:46.360 down the road. 00:49:46.360 --> 00:49:49.760 This is our first attempt to help answer your question. 00:49:49.760 --> 00:50:03.720 We'll pull it back up if that's okay, Susan. 00:50:03.720 --> 00:50:05.920 So this is the five-year capital plan. 00:50:05.920 --> 00:50:08.440 This isn't the slide to address your question, Mr. Bafford. 00:50:08.440 --> 00:50:14.200 This is the adopted or what will be considered for adoption by PUV and City Council in the 00:50:14.200 --> 00:50:15.200 coming months. 00:50:15.200 --> 00:50:20.360 So you can see in 2021, we have $35.5 million in debt issuance. 00:50:20.360 --> 00:50:23.920 Plan projects that we plan to complete in 2021. 00:50:23.920 --> 00:50:27.400 Revenue funding, this is coming from the operating fund. 00:50:27.400 --> 00:50:32.680 So rate revenue, we have about $12.9 or $13 million in project funding. 00:50:32.680 --> 00:50:36.000 Impact fee funding, which we call it on the five-year forecast, is about $2.7. 00:50:36.000 --> 00:50:40.200 We have some aid in construction and some fee accord replacement. 00:50:40.200 --> 00:50:45.760 So total CIP for 2021 is $51.7 million or $51.8. 00:50:45.760 --> 00:50:51.160 Over the five-year period, you can see that number is just around $100 million. 00:50:51.160 --> 00:50:54.560 So I'll get into a detailed discussion about the projects that are getting completed here 00:50:54.560 --> 00:50:55.560 shortly. 00:50:55.560 --> 00:50:59.840 But to my earlier point, this would be the amount included in the budget. 00:50:59.840 --> 00:51:04.280 What staff does before we formally issue this debt in the water utility, we actually do 00:51:04.280 --> 00:51:10.640 look at our project schedule and what can we complete that fiscal year. 00:51:10.640 --> 00:51:15.200 So this is the kind of project timeline of some projects we currently have. 00:51:15.200 --> 00:51:19.640 This is not a complete list of everything in the water utility. 00:51:19.640 --> 00:51:24.800 We did pick out the majority of the larger projects, the ones that we can have that discussion 00:51:24.800 --> 00:51:26.200 with you today about. 00:51:26.200 --> 00:51:29.320 There are several field service replacement projects that are smaller than this that are 00:51:29.320 --> 00:51:30.320 cash-funded. 00:51:30.320 --> 00:51:34.520 But starting at the top, you know, Elm and Locust, you can see the budgeted amount in 00:51:34.520 --> 00:51:36.880 this column of $950,000. 00:51:36.880 --> 00:51:40.960 What the expenses are today, what's unencumbered, and the funds remaining. 00:51:40.960 --> 00:51:43.840 And then one thing we wanted to provide you is kind of, you know, what was that estimated 00:51:43.840 --> 00:51:49.520 completion date, which in this project is January 31st of 2020. 00:51:49.520 --> 00:51:53.860 I'd like to draw your attention to this number down here, this $10.9 million. 00:51:53.860 --> 00:51:58.060 These projects make up about $10.9 million, about $14 million that's currently unencumbered 00:51:58.060 --> 00:51:59.760 in the water utility. 00:51:59.760 --> 00:52:03.520 Three years ago, that $14 million was about $25 to $30 million. 00:52:03.520 --> 00:52:07.080 So over the last two or three years, the water utility and Frank and his staff have done 00:52:07.080 --> 00:52:11.280 a great job getting these projects completed, and we've actually brought that unencumbered 00:52:11.280 --> 00:52:12.920 amount down in the water utility. 00:52:12.920 --> 00:52:17.440 Does anyone have any detailed question on these projects that Frank can come up and address 00:52:17.440 --> 00:52:20.440 from a completion standpoint? 00:52:20.440 --> 00:52:27.080 This looks like it, Nick. 00:52:27.080 --> 00:52:28.080 Okay. 00:52:28.080 --> 00:52:31.460 So this is not a complete list. 00:52:31.460 --> 00:52:36.200 The ordinance will come back to you, Mr. Cheek, as you had said about that detail. 00:52:36.200 --> 00:52:39.560 Before we ask you to adopt a rate ordinance, you will get a complete red line ordinance 00:52:39.560 --> 00:52:42.520 that will have all the rate changes identified in it. 00:52:42.520 --> 00:52:46.760 So looking at the 2% decrease across the water utility, that's the direction we get from 00:52:46.760 --> 00:52:47.760 the PUB. 00:52:47.760 --> 00:52:50.500 For residential, we use a 3/4 inch meter. 00:52:50.500 --> 00:52:55.280 This is the most common meter size in the residential water utility, and you can see 00:52:55.280 --> 00:52:58.160 the current rate that's currently in place is $16. 00:52:58.160 --> 00:53:04.480 This is the facility charge, but the 2% decrease, this would go to 1568. 00:53:04.480 --> 00:53:09.840 Our volume charge from zero to 15,000 gallons, and it is charged per 1,000 gallon, it's 415 00:53:09.840 --> 00:53:10.840 per 1,000. 00:53:10.840 --> 00:53:13.940 This would decrease to 407. 00:53:13.940 --> 00:53:17.300 And then commercial, we use a 2 inch meter, so the facility charge currently in place 00:53:17.300 --> 00:53:22.880 is 5150, but the 2% decrease would be $50.47. 00:53:22.880 --> 00:53:26.360 The volume charge for commercial per 1,000 gallon is 445. 00:53:26.360 --> 00:53:27.360 This would decrease to 436. 00:53:27.360 --> 00:53:30.840 There are a couple other rates I wanted to update the PUB on today. 00:53:30.840 --> 00:53:36.960 These are contractual agreements that we have for wholesale water agreements that are out 00:53:36.960 --> 00:53:37.960 there. 00:53:37.960 --> 00:53:41.640 So the Wholesale Raw Water Service to the Upper Trinity Regional Water District, this 00:53:41.640 --> 00:53:43.460 is a rate we update every single year. 00:53:43.460 --> 00:53:46.160 It's currently set at .7401. 00:53:46.160 --> 00:53:52.560 This rate is 85% of the Dallas wholesale rate, so that rate would go to .7578. 00:53:52.560 --> 00:53:57.400 And then the pass through Lake Chapman, this is another rate we update. 00:53:57.400 --> 00:54:01.480 According to the agreement, this one adjusts annually on a CPI adjuster for the month of 00:54:01.480 --> 00:54:02.480 June. 00:54:02.480 --> 00:54:08.440 So this rate would increase from .0270 to .0275. 00:54:08.440 --> 00:54:13.040 Like I said, this is not an all-inclusive list that will come back to the Public Utility 00:54:13.040 --> 00:54:16.820 Board in a red line rate ordinance that lists all the rates. 00:54:16.820 --> 00:54:19.840 What we wanted to show, and we showed this to council last year too, and I think we've 00:54:19.840 --> 00:54:24.580 historically shown at the PUB in the previous years, this is what an average residential 00:54:24.580 --> 00:54:27.160 customer could expect to pay in the city of Denton. 00:54:27.160 --> 00:54:29.920 So at the top, you saw the electric utility last week. 00:54:29.920 --> 00:54:34.280 We are currently not forecasting any rate changes in that utility. 00:54:34.280 --> 00:54:37.480 Water we do based on 9,200 gallons. 00:54:37.480 --> 00:54:43.360 You can see what a customer would pay in the proposed budget of .5310, which is at 2% decrease. 00:54:43.360 --> 00:54:46.560 In wastewater, which you haven't seen this one yet, we're not proposing any rate changes 00:54:46.560 --> 00:54:50.240 for the wastewater utility, 3,115 would be the rate. 00:54:50.240 --> 00:54:55.760 And then solid waste, we are currently proposing a $1 decrease for residential customers, which 00:54:55.760 --> 00:54:58.560 would take that rate to $20.51. 00:54:58.560 --> 00:55:01.680 So total is $229.56. 00:55:01.680 --> 00:55:05.000 So this would be a decrease for the average residential customer of $2.08. 00:55:05.000 --> 00:55:10.180 A couple of other things, if you do remember, the PUB and city council both approved the 00:55:10.180 --> 00:55:16.520 mid-year rate decrease last November and December for the residential solid waste customers, 00:55:16.520 --> 00:55:17.520 the $3. 00:55:17.520 --> 00:55:26.640 So previously, this rate was $24.51, but you have an asterisk, it is currently $21.51. 00:55:26.640 --> 00:55:31.240 So this presentation, we'll go to council tomorrow, August the 4th. 00:55:31.240 --> 00:55:34.920 We do intend to circle back with the PUB in the coming weeks. 00:55:34.920 --> 00:55:37.040 The state may change based on our discussion today. 00:55:37.040 --> 00:55:41.040 So maybe later in August, when we get that detailed information to the public utility 00:55:41.040 --> 00:55:42.040 board. 00:55:42.040 --> 00:55:45.920 And then September 15th, the city council is currently scheduled to adopt the budget 00:55:45.920 --> 00:55:47.680 and tax rate and the capital plan. 00:55:47.680 --> 00:55:52.080 And as I previously mentioned, circling back with the public utility board in December 00:55:52.080 --> 00:55:57.680 of 2020, with that mid-year budget and rate discussion, when we fully understand the impact 00:55:57.680 --> 00:55:59.880 from the COVID pandemic. 00:55:59.880 --> 00:56:01.400 And with that, I will pull it down. 00:56:01.400 --> 00:56:03.680 That concludes the financial portion of water. 00:56:03.680 --> 00:56:07.760 I'll turn it back over to Frank to go over the operations for wastewater shortly, if 00:56:07.760 --> 00:56:09.920 you don't have any questions. 00:56:09.920 --> 00:56:11.960 Anybody have questions? 00:56:11.960 --> 00:56:17.600 You're on mute. 00:56:17.600 --> 00:56:19.320 My apologies. 00:56:19.320 --> 00:56:28.420 In terms of the rate structure, if you could guesstimate, do you have just kind of a shoot 00:56:28.420 --> 00:56:34.800 from the hip kind of cost per thousand that it costs you to operate? 00:56:34.800 --> 00:56:42.720 I mean, is it roughly, you know, $3.75 per thousand, $4 per thousand, $40 per thousand? 00:56:42.720 --> 00:56:45.160 Mr. Parker, in front of me right now, I do not have that number. 00:56:45.160 --> 00:56:49.840 I will tell you that that number will is currently being revised in that cost of service study 00:56:49.840 --> 00:56:53.040 that will come back to the public utility board in November. 00:56:53.040 --> 00:56:56.240 But we can look it up based on our current cost of service and I can provide that number 00:56:56.240 --> 00:56:58.240 to get a follow-up response. 00:56:58.240 --> 00:57:07.760 Okay, not asking for precision, but is that number in the 30s, the 40s, the 50s, 60s? 00:57:07.760 --> 00:57:10.880 The number is close to the number that you see in the presentation. 00:57:10.880 --> 00:57:14.780 So every year we do update a cost of service study that looks at the facility charge and 00:57:14.780 --> 00:57:16.840 looks at the volume charge. 00:57:16.840 --> 00:57:22.760 But to give you an exact number, I don't have it in front of me right now, Mr. Parker. 00:57:22.760 --> 00:57:27.080 The intent of the cost of service study is to make sure we just recover our costs and 00:57:27.080 --> 00:57:29.160 nothing more. 00:57:29.160 --> 00:57:31.680 That's correct. 00:57:31.680 --> 00:57:32.680 That's correct. 00:57:32.680 --> 00:57:34.360 And we do cost of service studies. 00:57:34.360 --> 00:57:37.840 Solid waste went through one, I think it was two years ago. 00:57:37.840 --> 00:57:40.680 Water and wastewater are both going through one now. 00:57:40.680 --> 00:57:44.600 And what that cost of service study do, right, it'll give us staff a working model that we 00:57:44.600 --> 00:57:47.320 can update annually, usually for about a five-year period. 00:57:47.320 --> 00:57:50.280 So we update these every five years. 00:57:50.280 --> 00:57:55.440 We will also, we intend to have a rate discussion and a cost of service discussion with you 00:57:55.440 --> 00:57:57.940 for the electric utility in November, December this year also. 00:57:57.940 --> 00:58:04.200 So there'll be four rate discussions for each of the utilities in detail coming up in November, 00:58:04.200 --> 00:58:05.200 December. 00:58:05.200 --> 00:58:06.200 Okay. 00:58:06.200 --> 00:58:18.160 I guess my question was, it looks like, is it $48 per thousand that we have for the top 00:58:18.160 --> 00:58:19.640 commercial cost? 00:58:19.640 --> 00:58:23.160 Let me pull it right back up here. 00:58:23.160 --> 00:58:34.320 Hang on, just bear with me a second, Mr. Parker. 00:58:34.320 --> 00:58:40.360 Is this the slide you're referring to for the wastewater, for the water rate? 00:58:40.360 --> 00:58:42.520 Water rates, probably two behind that, I think. 00:58:42.520 --> 00:58:43.520 Okay. 00:58:43.520 --> 00:58:44.840 My memory serves me correct. 00:58:44.840 --> 00:58:48.840 Slide 13, I believe, there. 00:58:48.840 --> 00:58:49.840 This one? 00:58:49.840 --> 00:58:50.840 Okay. 00:58:50.840 --> 00:58:54.760 So you're charging $4.45 per thousand. 00:58:54.760 --> 00:58:56.200 That's correct. 00:58:56.200 --> 00:59:03.240 And then for the lowest residential, looks like you're getting $4.15. 00:59:03.240 --> 00:59:08.660 And I would expect that to be residential being slightly lower, but about the same. 00:59:08.660 --> 00:59:16.680 What are the top commercial and top residential rates you're using right now? 00:59:16.680 --> 00:59:19.240 For the highest tier, is that your question? 00:59:19.240 --> 00:59:21.440 For the low tier, above zero to $15,000. 00:59:21.440 --> 00:59:22.440 I can get that for you. 00:59:22.440 --> 00:59:23.440 Hang on just a second. 00:59:23.440 --> 00:59:24.440 I have it. 00:59:24.440 --> 00:59:32.560 Hang on just a second. 00:59:32.560 --> 00:59:48.640 Mr. Parker. 00:59:48.640 --> 00:59:53.360 So for commercial service, we actually have a volume charge for inside the city of Denton 00:59:53.360 --> 00:59:54.360 at $4.45. 00:59:54.360 --> 00:59:57.840 So to answer your question, we do currently not have a tier in place. 00:59:57.840 --> 01:00:01.800 There's a $4.45 charge for commercial customers per thousand gallon. 01:00:01.800 --> 01:00:04.500 It's a little bit different. 01:00:04.500 --> 01:00:08.440 Residential does have a tiered structure to incentivize water conservation. 01:00:08.440 --> 01:00:11.480 So what I was showing you is zero to 15,000 gallon. 01:00:11.480 --> 01:00:20.040 As you step up on the residential water side, over 50,000 gallons would be 415 if you're 01:00:20.040 --> 01:00:21.040 in the winter. 01:00:21.040 --> 01:00:27.280 But in the summer, when we're incentivizing that conservation, it goes to $10.90. 01:00:27.280 --> 01:00:36.240 So right now you're charging large residential users more than double what you charge commercial? 01:00:36.240 --> 01:00:39.560 For over 50,000 gallons. 01:00:39.560 --> 01:00:42.840 That is currently the way that the rate ordinance is set up. 01:00:42.840 --> 01:00:48.440 If you went over 50,000 gallon, your per thousand gallon rate would be $10.90. 01:00:48.440 --> 01:00:49.520 So to answer your question, yes. 01:00:49.520 --> 01:00:59.560 If a residential customer did go over 50,000 gallons, it would be double. 01:00:59.560 --> 01:01:09.440 That seems out of line to me for people who are on semi-agricultural or larger products 01:01:09.440 --> 01:01:11.760 or homes. 01:01:11.760 --> 01:01:17.480 That seems awfully punitive when somebody like, I don't know, Safety Clean, I don't 01:01:17.480 --> 01:01:24.700 mean to pick on them as an example, is paying less than half of the rate of someone who 01:01:24.700 --> 01:01:29.280 lives on a large or old residential property. 01:01:29.280 --> 01:01:33.240 That seems like a very large difference. 01:01:33.240 --> 01:01:37.360 I certainly understand incentivizing lower usage. 01:01:37.360 --> 01:01:38.600 That makes sense. 01:01:38.600 --> 01:01:45.560 But doubling the rate seems a little overly punitive, in my opinion. 01:01:45.560 --> 01:01:50.080 So Charlie, just a question for you on your comment. 01:01:50.080 --> 01:01:58.760 Are you saying it's not fair to the residential, whereas commercial residential should be more 01:01:58.760 --> 01:01:59.760 in line? 01:01:59.760 --> 01:02:03.800 Or are you saying it's just too much? 01:02:03.800 --> 01:02:04.800 Yes. 01:02:04.800 --> 01:02:05.800 I don't understand. 01:02:05.800 --> 01:02:12.280 It seems, you know, I looked up Gainesville because it's a nearby city. 01:02:12.280 --> 01:02:19.440 And Gainesville is like 48 per thousand for everybody or for all residential. 01:02:19.440 --> 01:02:25.560 And Denton has chosen to have a punitive rate for large residential users. 01:02:25.560 --> 01:02:33.480 It just seems to me that that's a little too high a punitive rate relative to the commercial. 01:02:33.480 --> 01:02:38.440 The commercial is 48 cents, almost $11 per thousand. 01:02:38.440 --> 01:02:40.440 Seems pretty punitive. 01:02:40.440 --> 01:02:41.940 Yeah. 01:02:41.940 --> 01:02:45.160 So I'll comment on that, and I think this is the philosophy. 01:02:45.160 --> 01:02:54.320 I'm putting words in mixed mouth here, but the commercial user is using that for manufacturing 01:02:54.320 --> 01:02:57.020 or whatever purposes it may be. 01:02:57.020 --> 01:03:03.400 And so they're using that water to do their business, whereas the residential is doing 01:03:03.400 --> 01:03:07.360 to be somebody overwatering a major amount, I would assume. 01:03:07.360 --> 01:03:12.440 And the philosophy is you're trying to sell water to the commercial user, but we're trying 01:03:12.440 --> 01:03:16.160 to promote saving water to the residential user. 01:03:16.160 --> 01:03:17.400 Is that correct, Nate? 01:03:17.400 --> 01:03:18.400 Yes, Mr. Jake. 01:03:18.400 --> 01:03:19.400 That is correct. 01:03:19.400 --> 01:03:25.760 That is for over irrigation that this incentivizes people to over irrigate their yards. 01:03:25.760 --> 01:03:31.000 And one other thing, Mr. Parker, I was trying to find you on the screen here really quick. 01:03:31.000 --> 01:03:34.540 So the over $50,000 is going from the incremental amount. 01:03:34.540 --> 01:03:37.720 So anything over $50,000 would be charged at that $1090. 01:03:37.720 --> 01:03:40.360 Anything under the other rate would still apply. 01:03:40.360 --> 01:03:43.200 So let's make sure I clarify that really quick. 01:03:43.200 --> 01:03:47.080 So anything leading up that $50,000 -- sorry, Susan. 01:03:47.080 --> 01:03:51.200 No, $50,000 in a residential is a lot of water. 01:03:51.200 --> 01:03:52.200 Yeah. 01:03:52.200 --> 01:03:53.200 Agreed. 01:03:53.200 --> 01:03:54.200 A lot of water. 01:03:54.200 --> 01:03:59.640 And won't this be addressed when we do the cost of service study again, because we do 01:03:59.640 --> 01:04:01.720 it by class? 01:04:01.720 --> 01:04:02.720 Yeah. 01:04:02.720 --> 01:04:03.720 Yeah. 01:04:03.720 --> 01:04:07.800 And our full intent is to have the consultant here to help us address these questions with 01:04:07.800 --> 01:04:09.400 the Public Utility Board. 01:04:09.400 --> 01:04:15.320 Staff will have a presentation that will be detailed to go through these rates in a full 01:04:15.320 --> 01:04:16.320 presentation. 01:04:16.320 --> 01:04:19.240 And you can look at each one of them separately and ask those questions. 01:04:19.240 --> 01:04:20.240 Absolutely. 01:04:20.240 --> 01:04:21.240 And this is Tony. 01:04:21.240 --> 01:04:23.480 And that will be in November. 01:04:23.480 --> 01:04:25.960 We'll have that ready for you in work session. 01:04:25.960 --> 01:04:26.960 Russ. 01:04:26.960 --> 01:04:30.080 Yes, I have a question about Hunter coal. 01:04:30.080 --> 01:04:35.880 I believe you said you incorporated those numbers in beginning 2024 into your budget 01:04:35.880 --> 01:04:37.800 figures. 01:04:37.800 --> 01:04:41.720 My question is, how did you phase that in? 01:04:41.720 --> 01:04:47.040 Obviously, in 2024, Hunter coal is not going to be 100% built. 01:04:47.040 --> 01:04:49.720 You would probably phase that in over a period of years. 01:04:49.720 --> 01:04:52.120 What kind of assumptions did you make there? 01:04:52.120 --> 01:04:54.280 That's a great question. 01:04:54.280 --> 01:04:57.040 And Frank can definitely give us a little more detail on that. 01:04:57.040 --> 01:05:00.520 But the city did contract with a consultant to come in to look at the Hunter coal ranch 01:05:00.520 --> 01:05:01.520 development. 01:05:01.520 --> 01:05:05.080 What the consultant did, they did look at the phased in approach to that development. 01:05:05.080 --> 01:05:07.640 So starting near 2024, you're absolutely correct. 01:05:07.640 --> 01:05:12.180 There's not 100% of those residents in commercial businesses going to be built at once. 01:05:12.180 --> 01:05:14.000 So this is a phased in approach. 01:05:14.000 --> 01:05:18.880 So there is some showing up in 2024, but it's minimum in the total size of that development. 01:05:18.880 --> 01:05:21.160 So it is not everything at once. 01:05:21.160 --> 01:05:26.760 It is just what that study identified as being online and needing water service or wastewater 01:05:26.760 --> 01:05:30.360 service starting in 2024. 01:05:30.360 --> 01:05:37.400 I would think you could maybe present that in one table with years in the dollar amount 01:05:37.400 --> 01:05:43.000 per year contribution to the budget or demand on the budget. 01:05:43.000 --> 01:05:46.560 Yeah, we can we can summarize that for you, Mr. Bafford. 01:05:46.560 --> 01:05:48.880 All right, I think we need to move on. 01:05:48.880 --> 01:05:56.960 Okay, one quick question, I'm sorry, what, Nick, what's the hydrants estimate for charges 01:05:56.960 --> 01:06:00.240 going to be? 01:06:00.240 --> 01:06:05.200 I haven't, Mr. Sheik, I don't have the hydrants in front of me right now and what that what 01:06:05.200 --> 01:06:07.060 the new rate will be. 01:06:07.060 --> 01:06:10.120 For today's presentation, we went through and looked at the 2% decrease for residential 01:06:10.120 --> 01:06:11.120 commercial. 01:06:11.120 --> 01:06:15.040 But that will come back with you at that red line ordinance and you can look at it in detail. 01:06:15.040 --> 01:06:18.280 And then it's 15 to 20 pages, so it'll have all the rates outlined for you. 01:06:18.280 --> 01:06:19.280 Great. 01:06:19.280 --> 01:06:20.760 Thank you. 01:06:20.760 --> 01:06:37.920 Okay, with that, I will turn it back over to Frank to go through wastewater. 01:06:37.920 --> 01:06:38.920 Thank you, Nick. 01:06:38.920 --> 01:06:48.560 Madam Chair, PUP member, Frank Pugsley, Water and Wastewater Utilities Director, back with 01:06:48.560 --> 01:06:49.560 you again. 01:06:49.560 --> 01:06:50.560 Skip ahead here. 01:06:50.560 --> 01:06:51.560 Where are we, Nick? 01:06:51.560 --> 01:06:52.560 There we go. 01:06:52.560 --> 01:06:53.560 Wastewater utilities. 01:06:53.560 --> 01:06:54.680 Excuse me. 01:06:54.680 --> 01:06:59.440 And I may repeat a few of the things I said earlier, just in case there are new people 01:06:59.440 --> 01:07:01.160 listening to the wastewater presentation. 01:07:01.160 --> 01:07:02.160 So please excuse me. 01:07:02.160 --> 01:07:05.080 I'll still try to keep some of those brief. 01:07:05.080 --> 01:07:10.240 Again, some accomplishments and future goals, taking a little retrospective on the wastewater 01:07:10.240 --> 01:07:11.480 department. 01:07:11.480 --> 01:07:16.880 This past fiscal year, we did complete the requirements of our EPA administrative order, 01:07:16.880 --> 01:07:20.680 which essentially required us to reduce sanitary sewer overflows. 01:07:20.680 --> 01:07:26.880 We've very successfully done that through our extensive cleaning and maintenance programs. 01:07:26.880 --> 01:07:32.880 And we are getting very close to completing the Hickory Creek lift station replacement. 01:07:32.880 --> 01:07:37.760 You discussed it earlier a little bit about the root cause analysis for those failures. 01:07:37.760 --> 01:07:43.120 We've had significant issues with that facility over the last two years or so. 01:07:43.120 --> 01:07:48.120 We have a permanent tip-ray solution in place right now, and the new lift station will be 01:07:48.120 --> 01:07:50.540 online later this year. 01:07:50.540 --> 01:07:54.840 And we should be in good shape there for quite a while. 01:07:54.840 --> 01:08:00.620 Some of our future goals are to complete the design of the phase one of the Pecan Creek 01:08:00.620 --> 01:08:04.720 Wastewater Treatment Plant expansion, and that's to handle general growth in the city, 01:08:04.720 --> 01:08:09.600 as well as some of the increases we expect from the Hunter and Cole Ranch. 01:08:09.600 --> 01:08:16.360 And to prepare an extensively updated wastewater collection system master plan that will help 01:08:16.360 --> 01:08:20.600 guide us in our capital improvement plans moving forward. 01:08:20.600 --> 01:08:25.600 Again, philosophical changes, we have worked diligently over the last 12 to 18 months to 01:08:25.600 --> 01:08:30.120 really focus on improving the culture in our department, break down the silos, and make 01:08:30.120 --> 01:08:36.160 sure all of our staff are comfortable functioning together, working with other departments from 01:08:36.160 --> 01:08:41.440 tech services, public works, capital projects, so that we can be our most efficient selves 01:08:41.440 --> 01:08:45.960 at the city of Denton, and innovative planning and cost savings. 01:08:45.960 --> 01:08:52.400 We are conducting a capacity expansion at Pecan Creek Water Treatment Plant, or Wastewater 01:08:52.400 --> 01:08:57.820 Recovery Plant, Wastewater Treatment Plant, by doing some improvements to existing processes, 01:08:57.820 --> 01:09:03.440 no actual physical expansions to volumes at the plant, we're doing this with a chemically 01:09:03.440 --> 01:09:08.480 enhanced primary treatment process, and we're going to step into it in phases. 01:09:08.480 --> 01:09:12.520 The first phase I mentioned is one of our goals for this year, is to expand the solids 01:09:12.520 --> 01:09:20.360 handling program, then we will expand the filtration capacity and then implement the 01:09:20.360 --> 01:09:22.940 stepped process itself. 01:09:22.940 --> 01:09:28.120 And again, our asset management program that the software package we use to assign a score 01:09:28.120 --> 01:09:31.840 to every pipe in the city so that we know we're replacing the right pipes at the right 01:09:31.840 --> 01:09:36.920 time and also using those scores to collaborate with the streets department and tie those 01:09:36.920 --> 01:09:41.840 together with their street condition index so we make sure we're building the right CIP 01:09:41.840 --> 01:09:44.100 projects for the city. 01:09:44.100 --> 01:09:51.640 The operational data for wastewater collection, we intend to complete CCTV inspection of 120,000 01:09:51.640 --> 01:09:56.800 linear feet of wastewater lines, gravity lines this year, as well as complete cleaning of 01:09:56.800 --> 01:10:02.800 675,000 feet, and those goals carry forward to the next year. 01:10:02.800 --> 01:10:06.520 Our major maintenance, the replacement of aging infrastructure, again, I'll touch on 01:10:06.520 --> 01:10:11.320 a little bit, but historically we haven't outsourced much replacement, and through the 01:10:11.320 --> 01:10:16.300 collaboration with the street program and our asset management system, we've reset our 01:10:16.300 --> 01:10:20.880 minimum replacement to 24,000 linear feet a year. 01:10:20.880 --> 01:10:27.640 This year, we will hit about 37, 38,000 linear feet and intend to make 40,000 linear feet 01:10:27.640 --> 01:10:33.000 of major maintenance replacements next year, and again, we'll use that outsourcing to ramp 01:10:33.000 --> 01:10:38.880 up and ramp down our replacement so that we can meet that 24,000 linear foot goal, because 01:10:38.880 --> 01:10:43.560 we can turn, again, outsourcing on and off, but we can't turn on and off our crews for 01:10:43.560 --> 01:10:45.720 emergency response in towns. 01:10:45.720 --> 01:10:49.920 We want to make sure we keep our guys who work for the city fully utilized and we can 01:10:49.920 --> 01:10:56.600 use outside contractors to fill in the gaps where we need. 01:10:56.600 --> 01:11:02.480 Our employee summary for the wastewater department, we began the year with 125 full-time employees 01:11:02.480 --> 01:11:04.160 on the books. 01:11:04.160 --> 01:11:10.680 We ended up with 31 vacancies through unfilled positions and the VSP departures. 01:11:10.680 --> 01:11:16.800 We were approved to refill 18 of those, leaving us with 112 FTEs today and carrying into next 01:11:16.800 --> 01:11:22.480 fiscal year, so that estimated salary savings brings us almost $2 million, $990,000 in salary 01:11:22.480 --> 01:11:26.880 savings, and you'll see the positions that were eliminated from the budget in the bulleted 01:11:26.880 --> 01:11:31.240 list, and again, we've done all this with really no reductions in level of service, 01:11:31.240 --> 01:11:36.840 and we've done that through efficiently reallocating some of the responsibilities as well as those 01:11:36.840 --> 01:11:42.240 partnerships and cooperation with other departments, so we make sure we are being as efficient 01:11:42.240 --> 01:11:45.800 as practical. 01:11:45.800 --> 01:11:50.920 In the org chart, you'll remember, of course, Ken Banks, our general manager of utilities, 01:11:50.920 --> 01:11:56.840 his six direct reports, and each one of our functional responsibilities, and again, just 01:11:56.840 --> 01:12:02.160 in case someone new is listening, the Clear Creek Natural Heritage Center, that educational 01:12:02.160 --> 01:12:07.160 programming and sustainable schools initiative program, is going to be transferred to the 01:12:07.160 --> 01:12:14.000 parks department, and Gary Packin will definitely discuss more of that with everyone in the 01:12:14.000 --> 01:12:15.920 future during their presentations. 01:12:15.920 --> 01:12:23.960 With that, I will open it up to operational questions. 01:12:23.960 --> 01:12:24.960 >> Any questions? 01:12:24.960 --> 01:12:27.160 >> Yeah, I forget. 01:12:27.160 --> 01:12:34.840 On slide number four, on infrastructure replacements, there's three columns, there's three columns 01:12:34.840 --> 01:12:38.020 on slide number four, all of which are labeled 2019. 01:12:38.020 --> 01:12:44.320 >> Hang on, let me go back there. 01:12:44.320 --> 01:12:45.320 >> Maybe incorrect. 01:12:45.320 --> 01:12:46.320 >> Oh, yeah. 01:12:46.320 --> 01:12:47.320 >> Oh, yeah, I'm sorry. 01:12:47.320 --> 01:12:48.320 Yes, that's a typo. 01:12:48.320 --> 01:12:49.320 It should be '17, '18, '19. 01:12:49.320 --> 01:12:50.320 >> Okay. 01:12:50.320 --> 01:12:51.320 >> Yes, sir. 01:12:51.320 --> 01:12:52.320 >> Any other questions? 01:12:52.320 --> 01:12:57.320 Let me switch so I can see your hands. 01:12:57.320 --> 01:12:58.320 All right. 01:12:58.320 --> 01:12:59.320 Greenwich. 01:12:59.320 --> 01:13:02.020 >> Thank you very much. 01:13:02.020 --> 01:13:04.200 I will hand it back over to Nick. 01:13:04.200 --> 01:13:06.600 >> Susan, this is Tony. 01:13:06.600 --> 01:13:09.520 I just wanted to just bring your attention to the time. 01:13:09.520 --> 01:13:10.520 >> Yes. 01:13:10.520 --> 01:13:22.320 >> Thank you, Frank. 01:13:22.320 --> 01:13:27.520 Actually really quick, Daniel Kramer is going to come up and go through drainage. 01:13:27.520 --> 01:13:32.400 Once Daniel gets through drainage, I'll go through the financials for both. 01:13:32.400 --> 01:13:37.320 So let me turn it over to Daniel really quick. 01:13:37.320 --> 01:13:41.800 >> Good morning, Daniel. 01:13:41.800 --> 01:13:48.680 >> Good morning, Madam Chair, PUB members, it's Daniel Kramer, Deputy Director of Operations 01:13:48.680 --> 01:13:49.680 for Public Works. 01:13:49.680 --> 01:13:52.560 I'll be here talking about our drainage department. 01:13:52.560 --> 01:13:57.600 A few of our accomplishments and future goals that we've had for the past year, we've had 01:13:57.600 --> 01:14:00.240 multiple projects we've been able to complete. 01:14:00.240 --> 01:14:06.680 We did hit our goal of 25% of drainage inlands inspected over the past year. 01:14:06.680 --> 01:14:11.200 Some of our future goals we'll be working towards is going for a full inspect and grade 01:14:11.200 --> 01:14:14.400 of our existing storm drain systems. 01:14:14.400 --> 01:14:18.320 Currently right now we do know the sizes and the capacity of our systems, but with some 01:14:18.320 --> 01:14:22.280 of the neighborhood failures and stuff that we've seen recently in some of the storm drains, 01:14:22.280 --> 01:14:26.560 we're looking at getting a CCTV out throughout them so we can actually get a good grade on 01:14:26.560 --> 01:14:31.120 them, similar to what we use for our streets and our OCI. 01:14:31.120 --> 01:14:35.160 Also working on public awareness for our departments and making sure that everybody understands 01:14:35.160 --> 01:14:40.840 exactly what the drainage department does, because right now I think a lot of it is just 01:14:40.840 --> 01:14:44.120 what happens when there's an emergency and not what we do, normal maintenance and keeping 01:14:44.120 --> 01:14:45.560 stuff up. 01:14:45.560 --> 01:14:47.680 We're also working with our capital projects. 01:14:47.680 --> 01:14:51.680 We're going to work with engineering to reevaluate the whole capital program for drainage and 01:14:51.680 --> 01:14:56.640 make sure that we are all on the same page when it comes to the overall drainage plan 01:14:56.640 --> 01:14:59.520 for the city. 01:14:59.520 --> 01:15:06.080 Some of the service level changes that we've had here pre and post COVID. 01:15:06.080 --> 01:15:12.140 Every year we're going to continue our 100% inspection of our concrete line channels. 01:15:12.140 --> 01:15:15.800 We make sure we go through those every single year to make sure everything's flowing correctly 01:15:15.800 --> 01:15:17.880 just in case we have any weather events. 01:15:17.880 --> 01:15:22.720 Our earthen channels, we had ramped up last year with the addition of a new inspection 01:15:22.720 --> 01:15:24.080 crew. 01:15:24.080 --> 01:15:28.760 That will actually drop as I'll go through with our FTEs on how we had some changes with 01:15:28.760 --> 01:15:34.800 COVID, how it affected us with our VSP and also some other people leaving throughout 01:15:34.800 --> 01:15:36.440 the department. 01:15:36.440 --> 01:15:42.600 And as I said before, we did hit our 25 inspection of inlets over the past year. 01:15:42.600 --> 01:15:45.520 Post COVID, like I said, we'll continue with our concrete channels. 01:15:45.520 --> 01:15:49.720 Our earthen channels will just be down to the major earthen channels that we inspect 01:15:49.720 --> 01:15:54.160 every year, and the rest of them will be on an as-needed basis. 01:15:54.160 --> 01:15:59.640 And our inlet inspection will drop a little bit to 10%. 01:15:59.640 --> 01:16:05.840 Some of the operational data as we've been going through this past year, we mow roughly 01:16:05.840 --> 01:16:10.940 155 acres, and we do try to hit four cycles per year. 01:16:10.940 --> 01:16:14.000 And currently we're on goal to hit that for this year. 01:16:14.000 --> 01:16:21.960 Lane miles swept, we do roughly about 10 cycles per year, about 770 lane miles. 01:16:21.960 --> 01:16:27.920 Now that comes up, as you can see on the goal, it actually is 7,800, but the 77 lane miles 01:16:27.920 --> 01:16:31.720 swept does not include our thoroughfares, which we do every Friday, which is around 01:16:31.720 --> 01:16:36.280 the square Elm and Locust, that we do hit those on Fridays. 01:16:36.280 --> 01:16:41.760 And our concrete channel inspection, we're still already had those full inspection for 01:16:41.760 --> 01:16:46.440 this year, and so we'll be good on that. 01:16:46.440 --> 01:16:53.960 As said with our FTEs, we did lose actually our drainage manager and supervisor, and also 01:16:53.960 --> 01:16:58.660 one of our heavy equipment operators to the VSP this past year. 01:16:58.660 --> 01:17:03.200 We did refill, instead of refilling both the manager and the supervisor, we refilled the 01:17:03.200 --> 01:17:09.840 supervisor position, and we're going to leave the manager position vacant for the time being. 01:17:09.840 --> 01:17:17.620 And we also did refill the heavy equipment operator. 01:17:17.620 --> 01:17:23.200 For the organizational chart, we did go through, as you can see, we pretty much lost the entire 01:17:23.200 --> 01:17:25.840 crew that we did add last year for inspection. 01:17:25.840 --> 01:17:28.480 That's why our inspection numbers have gone down. 01:17:28.480 --> 01:17:32.760 We are looking at different ways to move forward to be more efficient, and how we can use our 01:17:32.760 --> 01:17:38.880 personnel the best way and focus towards maintenance going forward. 01:17:38.880 --> 01:17:39.880 Any questions? 01:17:39.880 --> 01:17:40.880 I have one. 01:17:40.880 --> 01:17:41.880 Billy. 01:17:41.880 --> 01:17:42.880 Daniel, it's Billy Chief. 01:17:42.880 --> 01:17:43.880 Mr. Chief. 01:17:43.880 --> 01:17:44.880 Hey. 01:17:44.880 --> 01:17:53.280 One thing that you kind of touched on a little bit about your grading, and I tell you, I've 01:17:53.280 --> 01:18:01.520 noticed a tremendous difference the past few years in the way the city drains for the better. 01:18:01.520 --> 01:18:10.680 It seems like the downstream grading and clearing of brush and debris and the open ditches wasn't 01:18:10.680 --> 01:18:11.680 being done very well. 01:18:11.680 --> 01:18:16.840 Now it looks really good, so you guys are doing a great job keeping this water moving, 01:18:16.840 --> 01:18:19.800 because there's been a lot of it. 01:18:19.800 --> 01:18:20.800 Well thank you, sir, Mr. Chief. 01:18:20.800 --> 01:18:26.680 We have been working to make sure that we focus on our maintenance as much as possible, 01:18:26.680 --> 01:18:31.320 and also with the multiple large scale CIP projects they have been doing in drainage 01:18:31.320 --> 01:18:33.080 that's helped out a lot also. 01:18:33.080 --> 01:18:34.600 Good stuff. 01:18:34.600 --> 01:18:36.600 Other questions? 01:18:36.600 --> 01:18:37.600 Okay. 01:18:37.600 --> 01:18:40.600 Nick's back up. 01:18:40.600 --> 01:18:42.600 Thank you. 01:18:42.600 --> 01:18:46.600 I'm back. 01:18:46.600 --> 01:18:52.800 Thank you, Daniel. 01:18:52.800 --> 01:18:56.720 As a reminder, for any PB members, I think everybody's aware of this. 01:18:56.720 --> 01:19:01.280 Drainage is part of the wastewater fund, so we do present drainage separately, but it 01:19:01.280 --> 01:19:03.400 does roll up ultimately into the wastewater fund. 01:19:03.400 --> 01:19:08.080 I'll show that to you here shortly in the forecast also. 01:19:08.080 --> 01:19:14.080 So similar to the water utility, we are forecasting 2% growth in forecasted revenues for wastewater. 01:19:14.080 --> 01:19:18.080 We are continuing to utilize impact fee funding just like we do in water in the wastewater 01:19:18.080 --> 01:19:19.760 fund. 01:19:19.760 --> 01:19:23.000 We have 3% growth forecast in the out years for expenses. 01:19:23.000 --> 01:19:26.840 Here's that hunter coal ranch development is accounted for in the wastewater utility 01:19:26.840 --> 01:19:29.680 in the financial picture as it is for water. 01:19:29.680 --> 01:19:34.760 And then rates, we are currently forecasting no rate changes for the wastewater utility. 01:19:34.760 --> 01:19:40.440 So the 10-year forecast, so in an effort to increase transparency, we've historically 01:19:40.440 --> 01:19:42.040 showed the 5-year forecast. 01:19:42.040 --> 01:19:45.520 We started showing the 10-year forecast in utilities to kind of give you that long-range 01:19:45.520 --> 01:19:48.240 forecast what the utility looks like. 01:19:48.240 --> 01:19:50.400 Similar to water, I'll start in the 2020 column. 01:19:50.400 --> 01:19:51.920 You can see the adopted budget here. 01:19:51.920 --> 01:19:55.680 We had $1.6 million in reserve usage for the wastewater utility. 01:19:55.680 --> 01:20:01.440 End of your forecast, we are coming in just about budget, a little bit under about $1.9 01:20:01.440 --> 01:20:02.440 million. 01:20:02.440 --> 01:20:06.280 Similar to water, we're currently accounting for some COVID impact in the wastewater utility 01:20:06.280 --> 01:20:07.280 of $389,000. 01:20:07.280 --> 01:20:13.240 One of the intents of circling back in December is to help quantify this amount and true this 01:20:13.240 --> 01:20:17.360 amount up as we receive that data back from customer service. 01:20:17.360 --> 01:20:21.760 So finishing the year, you can see we've got about $13.3 million in reserves in the wastewater 01:20:21.760 --> 01:20:22.760 utility. 01:20:22.760 --> 01:20:28.320 Moving forward in the proposed budget column in 2021, you can see rate revenue right in 01:20:28.320 --> 01:20:33.360 here is $30.5 million, non-rate revenue of $2.3. 01:20:33.360 --> 01:20:37.520 Impact fee funding of $500,000 is a little bit less in the wastewater utility. 01:20:37.520 --> 01:20:43.240 We don't have any minimum amount of eligible impact fee projects scheduled to be done next 01:20:43.240 --> 01:20:44.840 year that can be revenue funded. 01:20:44.840 --> 01:20:49.920 We're using about $3.7 impact funding to offset eligible debt. 01:20:49.920 --> 01:20:52.840 No usage of reserves is forecasted in 2021. 01:20:52.840 --> 01:20:57.240 We actually do show a little bit of profit at $292,000. 01:20:57.240 --> 01:20:59.520 You can see the 0% here in the green. 01:20:59.520 --> 01:21:02.120 Ending fund balance at $13.4. 01:21:02.120 --> 01:21:06.520 Here's that reserve requirement or reserve target for the wastewater fund, so a minimum 01:21:06.520 --> 01:21:11.680 of $10.3 with the top in $14.4. 01:21:11.680 --> 01:21:17.440 Going out into the future years, the wastewater utility does get a little bit below the minimum 01:21:17.440 --> 01:21:23.000 reserve requirement starting in fiscal year 2029, so you can see in '29 and 2030, we're 01:21:23.000 --> 01:21:27.680 a little bit below the minimum target, but I do want to point out this 10-year forecast 01:21:27.680 --> 01:21:30.760 has no rate increases within a 10-year period. 01:21:30.760 --> 01:21:34.240 So that may be something we had to circle back with the public utility board in the 01:21:34.240 --> 01:21:35.240 future. 01:21:35.240 --> 01:21:38.240 We'll keep you updated. 01:21:38.240 --> 01:21:45.680 So the five-year capital plan for the wastewater fund, so in 2021, the proposed budget, $32.8 01:21:45.680 --> 01:21:52.600 million in planned projects, 5.3 in revenue funding, 500,000 impact fee funding. 01:21:52.600 --> 01:21:57.840 You can see some aid in construction of $82,000 and vehicle replacement of $1.2 million. 01:21:57.840 --> 01:22:01.680 So the grand total is $40 million, and as previously said, the wastewater utility will 01:22:01.680 --> 01:22:04.000 not automatically issue the $32.8 million. 01:22:04.000 --> 01:22:08.160 Staff will go through and look at the projects that are slated to be completed and what is 01:22:08.160 --> 01:22:15.160 the need of the wastewater utility as far as bond proceeds. 01:22:15.160 --> 01:22:18.820 Same slide we showed in water, so we picked out the major projects within wastewater. 01:22:18.820 --> 01:22:23.000 This does exclude some of the field service replacement projects that are revenue funded. 01:22:23.000 --> 01:22:28.240 At the very top, similar to water, you can see Elm and Locust in the budget of $92,000, 01:22:28.240 --> 01:22:32.420 for example, with the completion date of 131 in 2020. 01:22:32.420 --> 01:22:38.120 So all of these projects currently make up about $15.9 million in remaining funding that 01:22:38.120 --> 01:22:40.120 is out there for these projects. 01:22:40.120 --> 01:22:42.800 I do want to point out that Frank and his staff, just like in water, have done a great 01:22:42.800 --> 01:22:46.540 job in wastewater in the last two or three years of really utilizing the existing funding 01:22:46.540 --> 01:22:50.760 that is out there in these projects, looking at what needs to be completed, and from a 01:22:50.760 --> 01:22:56.080 financial standpoint, really done a good job of looking at minimizing any bond issuances 01:22:56.080 --> 01:23:02.680 that are not required for the projects that are currently slated to be completed. 01:23:02.680 --> 01:23:07.400 The drainage forecast, this is a component of the tenure that you just saw. 01:23:07.400 --> 01:23:10.800 We've just separated out here for transparency reasons. 01:23:10.800 --> 01:23:18.000 So for 2021, you can see planned revenue of $5.4 million, and this is made up of drainage 01:23:18.000 --> 01:23:22.680 fees in the community, residential drainage fees, and non-residential, so commercial. 01:23:22.680 --> 01:23:27.720 So one's $1.9 and one's $3.1 for a total of $5.4, with some miscellaneous revenue added 01:23:27.720 --> 01:23:28.720 in there. 01:23:28.720 --> 01:23:32.920 And the expense budget, to support Daniel's budget that he just came up here and presented 01:23:32.920 --> 01:23:34.960 to you is about $5.4 million. 01:23:34.960 --> 01:23:40.320 We do segregate $1 million in reserves for the drainage fund, and this is a component 01:23:40.320 --> 01:23:42.200 of wastewater. 01:23:42.200 --> 01:23:49.080 This is the utility rates file that I showed you before, so you can see the overall decrease 01:23:49.080 --> 01:23:54.400 for residential customers of $2.08, with that mid-year rate reduction for residential customers 01:23:54.400 --> 01:24:01.140 of $3, so from $24.51 to $21.51. 01:24:01.140 --> 01:24:05.320 Kind of the steps forward, so tomorrow, council will review this presentation with the rest 01:24:05.320 --> 01:24:06.320 of the utilities. 01:24:06.320 --> 01:24:10.440 They have already seen electric, but they have not seen water, wastewater, and solid 01:24:10.440 --> 01:24:11.440 waste. 01:24:11.440 --> 01:24:15.000 On the August 10th date, the state will more likely change based on the discussion of PV 01:24:15.000 --> 01:24:16.000 todays. 01:24:16.000 --> 01:24:18.920 We'll come back later in August to seek your approval. 01:24:18.920 --> 01:24:23.560 City council approval of the budget is September 15th, with that detailed budget and rate discussion 01:24:23.560 --> 01:24:29.000 and cost of service discussion in November-December timeframe. 01:24:29.000 --> 01:24:31.280 That concludes the wastewater and drainage presentations. 01:24:31.280 --> 01:24:34.280 I'll pull it down for questions. 01:24:34.280 --> 01:24:37.800 All right, Nick, no questions. 01:24:37.800 --> 01:24:48.920 I will ask Brian Burner to come up and present the operational information for solid waste. 01:24:48.920 --> 01:25:01.360 Well, good morning, Madam Chair, members of the committee. 01:25:01.360 --> 01:25:02.360 My name is Brian Burner. 01:25:02.360 --> 01:25:05.720 I'm the director of environmental, excuse me, I'm the director of solid waste for the 01:25:05.720 --> 01:25:06.720 city of Denton. 01:25:06.720 --> 01:25:13.360 Appreciate the opportunity to run through our 2021 operational budget and capital program. 01:25:13.360 --> 01:25:18.880 This last year has been a tremendous year for the department in and of itself. 01:25:18.880 --> 01:25:20.680 We've had several major accomplishments. 01:25:20.680 --> 01:25:27.680 We've implemented the downtown trash, valet trash recycling program to much acclaim. 01:25:27.680 --> 01:25:32.040 We have started our new yard waste program, and currently we have about 22% of our residential 01:25:32.040 --> 01:25:34.720 customers actually signed up for that. 01:25:34.720 --> 01:25:39.340 And as a result of the implementation of this program, we've actually seen a significant 01:25:39.340 --> 01:25:43.400 reduction in worker compensation claims due to yard waste collection. 01:25:43.400 --> 01:25:48.280 So knock on wood, we have not had any employees injured as a result of yard waste collections 01:25:48.280 --> 01:25:49.280 in this year. 01:25:49.280 --> 01:25:54.280 So outstanding program there. 01:25:54.280 --> 01:26:01.480 Based on the improvements of our collection fleet, uptime is significant. 01:26:01.480 --> 01:26:07.040 And as a result, downtime repairs, maintenance has fallen off significantly. 01:26:07.040 --> 01:26:13.080 So we thank you for helping us move forward in those improvements. 01:26:13.080 --> 01:26:16.800 As we look into next year, one of the things that we are currently working on, and hopefully 01:26:16.800 --> 01:26:21.240 you will see very shortly, is a contract to implement the comprehensive solid waste management 01:26:21.240 --> 01:26:22.240 strategy. 01:26:22.240 --> 01:26:30.080 What we want to try to do again is to identify programs and plans and possibly impediments 01:26:30.080 --> 01:26:38.600 to implementing a solid waste program that is beneficial to the entire community as well 01:26:38.600 --> 01:26:42.100 as cost effective and sustainable as we move forward. 01:26:42.100 --> 01:26:44.720 So that contract should be coming forward. 01:26:44.720 --> 01:26:50.240 We're working to replace our scale house software asset and routing software systems so we can 01:26:50.240 --> 01:26:55.640 improve accuracy and modify or modernize our operation. 01:26:55.640 --> 01:27:00.640 We continue to work in education outreach, trying to recycle right and to reduce contamination 01:27:00.640 --> 01:27:03.880 in our recycling collections. 01:27:03.880 --> 01:27:07.360 So as a result, we've got a tremendous amount of effort ahead of us. 01:27:07.360 --> 01:27:12.120 Again, at the end of the day, we are trying to provide exceptional value to our community 01:27:12.120 --> 01:27:14.200 with the programs that we provide. 01:27:14.200 --> 01:27:18.920 A couple of service level changes I would like to identify. 01:27:18.920 --> 01:27:24.840 During COVID, unlike a lot of or several cities in the state of Texas as well as across the 01:27:24.840 --> 01:27:31.120 nation, we were able to continue providing the same level of service with no downsizing. 01:27:31.120 --> 01:27:36.080 So again, I would like to commend all the drivers, our supervisors, our managers working 01:27:36.080 --> 01:27:41.480 diligently and safely throughout these past few months to be able to remain on the road, 01:27:41.480 --> 01:27:45.720 be able to service our citizens, and again, not impact the level of service that we have 01:27:45.720 --> 01:27:49.720 been providing. 01:27:49.720 --> 01:27:55.480 In this post-COVID and operational period, a couple things have changed though. 01:27:55.480 --> 01:28:00.400 While we continue to collect home chemical collections on a curbside basis, we have temporarily 01:28:00.400 --> 01:28:07.220 closed our in-person drop off as well as a reuse store to minimize public exposure. 01:28:07.220 --> 01:28:09.060 We are not accepting cash at our scale house. 01:28:09.060 --> 01:28:11.280 We are credit and debit card only. 01:28:11.280 --> 01:28:13.320 We're increasing training protocols. 01:28:13.320 --> 01:28:16.760 We're putting in place worker safety issues. 01:28:16.760 --> 01:28:23.080 As a result, we are providing and one additional outreach aspect, our scale house staff is 01:28:23.080 --> 01:28:26.920 providing assistance to beneficial reuse in the downer customer sales. 01:28:26.920 --> 01:28:31.960 We're able to, I don't want to say double dip, but again, maximize the use of the effort 01:28:31.960 --> 01:28:35.360 that we currently have in our solid waste scale house. 01:28:35.360 --> 01:28:41.640 From an operational standpoint, we continue to identify customer growth as we move forward. 01:28:41.640 --> 01:28:48.460 Dave Denton is sort of at the top of the DFW area. 01:28:48.460 --> 01:28:51.840 Growth is coming our way, and we can see that from a residential standpoint. 01:28:51.840 --> 01:28:56.880 In 2021, we estimate that by the end of that year, we're going to be servicing slightly 01:28:56.880 --> 01:29:01.760 over 35,500 residential customers. 01:29:01.760 --> 01:29:06.760 Our yard waste program remains level, so everything that we're picking up off the curb and delivering 01:29:06.760 --> 01:29:10.720 to the landfill across the scales, it's remaining consistent. 01:29:10.720 --> 01:29:13.640 So that's a good number. 01:29:13.640 --> 01:29:18.880 One of the big increases that we're going to see and one of our supplemental packages, 01:29:18.880 --> 01:29:21.360 our commercial containers haul, it continues to improve. 01:29:21.360 --> 01:29:28.160 So our business community continues to grow and remain vibrant throughout this operational 01:29:28.160 --> 01:29:29.200 season. 01:29:29.200 --> 01:29:33.720 With our valet trash recycling fully implemented, we have 131 customers in the downtown and 01:29:33.720 --> 01:29:35.360 forestry areas. 01:29:35.360 --> 01:29:39.640 And if you've been in these areas after the implementation of our valet service, you'll 01:29:39.640 --> 01:29:47.360 notice that in addition to providing additional parking resources in these areas, the appearance 01:29:47.360 --> 01:29:48.600 has improved. 01:29:48.600 --> 01:29:52.720 We've seen a significant increase in the quality of recyclables that we are collecting from 01:29:52.720 --> 01:29:57.600 this area, as well as created a communication conduit with the business owners and the community 01:29:57.600 --> 01:29:58.980 in this area. 01:29:58.980 --> 01:30:02.040 So it's beneficial on many tiers. 01:30:02.040 --> 01:30:09.360 Significantly, also, our wholesale volumes as a result of our contracts with our private 01:30:09.360 --> 01:30:15.520 providers has jumped in '19 and then in '20, but you'll notice that in '22, '23, those 01:30:15.520 --> 01:30:19.760 contracts end and there's anticipated to be a significant drop-off. 01:30:19.760 --> 01:30:25.760 In this next year, 2021, we anticipate a little over 200,000 tons coming into the landfill 01:30:25.760 --> 01:30:28.600 from third-party sources. 01:30:28.600 --> 01:30:33.400 Across the scales, we see a significant increase of retail volumes also. 01:30:33.400 --> 01:30:40.840 These are the residents as well as the business community that are paying gate rates to bring 01:30:40.840 --> 01:30:43.080 material into the landfill. 01:30:43.080 --> 01:30:48.300 With the closure of DFW landfill in Lewisville, as well as the significant growth that we're 01:30:48.300 --> 01:30:53.280 seeing in the North Texas area, this is not unexpected, but again, the growth is significant. 01:30:53.280 --> 01:30:57.680 One of the things I would like to point out here is this compaction density. 01:30:57.680 --> 01:31:08.000 Currently, we're almost, in FY19-20, we averaged about 1,156 pounds per cubic yard. 01:31:08.000 --> 01:31:13.840 With changes in equipment and operational standards, we're hoping to increase that to a little 01:31:13.840 --> 01:31:17.760 over 1,200 pound per cubic yard. 01:31:17.760 --> 01:31:21.240 What this means is we're putting a lot more trash in a lot smaller area. 01:31:21.240 --> 01:31:27.640 As a result, the increases that we've made from last year into this year actually compensate 01:31:27.640 --> 01:31:31.560 for the increased wholesale volumes that we've been getting in, so we're really net zero 01:31:31.560 --> 01:31:36.640 in the amount of space that we anticipated using in this past year, even though we took 01:31:36.640 --> 01:31:40.200 more tonnage into the facility. 01:31:40.200 --> 01:31:48.360 From a personal standpoint, we started the year with 126 FTEs. 01:31:48.360 --> 01:31:58.640 Over the year, we had 14 vacant due to the VSP program, as well as resignations and the 01:31:58.640 --> 01:32:02.080 positions that we had been keeping open through salary savings. 01:32:02.080 --> 01:32:04.920 We've been approved and refilled 11 of those. 01:32:04.920 --> 01:32:10.120 Currently, we're going to give back three positions, a solid waste analyst, the supervisor 01:32:10.120 --> 01:32:14.400 of our household hazardous waste, our home chemical collection facility, as well as the 01:32:14.400 --> 01:32:17.680 assistant collections manager in solid waste. 01:32:17.680 --> 01:32:23.800 In 2021, we'll be proposing 123 FTEs in solid waste. 01:32:23.800 --> 01:32:27.040 Organization, again, we're fairly flat. 01:32:27.040 --> 01:32:30.600 We have deputy director that manages the operations section. 01:32:30.600 --> 01:32:35.160 We have a site operations manager, which manages our maintenance, as well as runs our home 01:32:35.160 --> 01:32:36.960 chemical collection facility. 01:32:36.960 --> 01:32:41.920 From an administrative standpoint, we have a manager that handles resource management, 01:32:41.920 --> 01:32:45.480 as well as oversees our solid waste station. 01:32:45.480 --> 01:32:49.120 And then we have an analysis section that works with business development, as well as 01:32:49.120 --> 01:32:54.480 applications and software upgrades to the system. 01:32:54.480 --> 01:33:04.680 From a supplemental standpoint, we're looking at an addition of about $731,000 in this next 01:33:04.680 --> 01:33:05.760 year. 01:33:05.760 --> 01:33:09.480 With the growth, as I stated previously, of our commercial collection, we're in need of 01:33:09.480 --> 01:33:11.440 an additional roll-off truck. 01:33:11.440 --> 01:33:17.120 This service is open tops on construction sites, as well as compactors around businesses 01:33:17.120 --> 01:33:18.760 and educational facilities. 01:33:18.760 --> 01:33:24.520 So currently, we're short and relying on rental vehicles. 01:33:24.520 --> 01:33:29.160 So the addition of this roll-off truck will ease some pressure there. 01:33:29.160 --> 01:33:33.200 In addition, with the expansion of our yard waste program, as well as the growth in our 01:33:33.200 --> 01:33:41.240 residential community, we find ourselves in need of additions in our cart purchase funds. 01:33:41.240 --> 01:33:48.600 With that, I would like to go ahead and open up for any questions that you might have regarding 01:33:48.600 --> 01:33:50.200 the program or the presentation. 01:33:50.200 --> 01:33:51.200 Questions? 01:33:51.200 --> 01:33:52.200 Ed, go ahead. 01:33:52.200 --> 01:33:53.200 You're on mute. 01:33:53.200 --> 01:33:54.200 Thank you. 01:33:54.200 --> 01:34:10.000 This sort of falls in with your first future goal, which is the solid waste comprehensive 01:34:10.000 --> 01:34:12.940 management strategy. 01:34:12.940 --> 01:34:22.580 The latest 2018 greenhouse gas inventory that the city has published indicates that waste 01:34:22.580 --> 01:34:30.680 emissions account for 44% of emissions from municipal operations. 01:34:30.680 --> 01:34:38.440 And it's an increase, actually, of 31% over 2017. 01:34:38.440 --> 01:34:44.780 And one can only assume that with the growth that is forecast and expansion that is forecast 01:34:44.780 --> 01:34:51.080 for the landfill, that this number is going to increase. 01:34:51.080 --> 01:35:03.640 So I know that much of the methane emissions from the landfill is from food waste. 01:35:03.640 --> 01:35:10.400 And so I'm basically saying that I hope that this solid waste comprehensive management 01:35:10.400 --> 01:35:22.320 strategy will include a food waste diversion plan, as well as, perhaps, residential curbside 01:35:22.320 --> 01:35:27.240 composting. 01:35:27.240 --> 01:35:30.620 Food waste diversion, I think, is very, very important with this. 01:35:30.620 --> 01:35:42.880 And I would hope, as well, that the comprehensive management strategy is of a wide scope a large 01:35:42.880 --> 01:35:43.880 time frame. 01:35:43.880 --> 01:35:50.800 I know you're probably familiar with Austin's Resource Recovery Master Plan, which is an 01:35:50.800 --> 01:36:02.800 amazing document, centralizes and compacts everything, all necessary aspects of the city 01:36:02.800 --> 01:36:05.720 in working on waste reduction. 01:36:05.720 --> 01:36:11.400 And the scope of their plan is 30 years, and some of it is even further. 01:36:11.400 --> 01:36:18.400 So I hope that given the great development, both residential and commercial, that is coming 01:36:18.400 --> 01:36:28.080 to Denton, that the plan to be has a scope that reflects the development that is coming 01:36:28.080 --> 01:36:29.560 to our community. 01:36:29.560 --> 01:36:30.560 Thanks. 01:36:30.560 --> 01:36:31.560 Thank you. 01:36:31.560 --> 01:36:32.560 Okay. 01:36:32.560 --> 01:36:33.560 Any other questions? 01:36:33.560 --> 01:36:36.000 We really need to keep moving. 01:36:36.000 --> 01:36:39.840 All right, Nick, you're up. 01:36:39.840 --> 01:36:48.680 Thank you. 01:36:48.680 --> 01:36:52.680 Thank you, Brian. 01:36:52.680 --> 01:37:02.400 All right, so financial assumptions for the wastewater fund, similar to water and wastewater, 01:37:02.400 --> 01:37:05.800 we do have a 2% growth forecast in the out years. 01:37:05.800 --> 01:37:11.560 We are currently anticipating the wholesale agreements ending in fiscal year '22 and '23. 01:37:11.560 --> 01:37:14.960 I'll walk you through that in a financial performance here shortly. 01:37:14.960 --> 01:37:19.320 Expenses the same thing as the other utilities, a 2% growth forecast in the out years. 01:37:19.320 --> 01:37:23.640 We do have cell construction being moved from fiscal year '22 to '21, seeing some of that 01:37:23.640 --> 01:37:25.640 growth coming into the facility. 01:37:25.640 --> 01:37:30.320 And then rates, a 5% rate decrease for residential customers is currently what we're proposing, 01:37:30.320 --> 01:37:31.320 which is a dollar. 01:37:31.320 --> 01:37:35.560 And I showed that to you in the water presentation, I'll review it with you again shortly. 01:37:35.560 --> 01:37:39.840 We are looking to make minimum updates to contracted rates, for example, the wholesale 01:37:39.840 --> 01:37:46.960 agreements, and then minimum updates to valley rate, commercial rate, and gate disposal rate. 01:37:46.960 --> 01:37:52.300 It's the five-year forecast for the solid waste fund. 01:37:52.300 --> 01:37:56.240 We will be bringing back a 10-year forecast when we come back to the Public Utility Board 01:37:56.240 --> 01:37:59.200 with a detailed discussion later in August. 01:37:59.200 --> 01:38:03.720 But in this financial picture, what you can see, so in the adopted 2020 column, you have 01:38:03.720 --> 01:38:06.680 planned use of reserves of $3 million. 01:38:06.680 --> 01:38:11.060 We are forecasting to finish the year a little bit better, or quite a bit better, about $1.4 01:38:11.060 --> 01:38:12.060 million positive. 01:38:12.060 --> 01:38:13.760 So actually not using reserves. 01:38:13.760 --> 01:38:17.480 So that continued growth that Brian was talking about coming into the facility has really 01:38:17.480 --> 01:38:19.620 helped out the solid waste fund. 01:38:19.620 --> 01:38:23.880 We are currently showing $280,000 for a COVID revenue impact number. 01:38:23.880 --> 01:38:27.320 We will refine this number when we come back to you in December, once we get some hard 01:38:27.320 --> 01:38:30.280 data from customer service regarding that impact. 01:38:30.280 --> 01:38:33.640 The proposed budget is in this dotted line here. 01:38:33.640 --> 01:38:38.160 In the 2021 budget, we do have planned use of reserves of $4.3 million. 01:38:38.160 --> 01:38:44.220 Moving down the page, you can see expenses of $44.1 for an ending fund balance of $8.3. 01:38:44.220 --> 01:38:50.000 In this fund, there is a minimum and a maximum goal that we have for our fund balance, 51 01:38:50.000 --> 01:38:55.200 days being the minimum of 14% and 65 days or 18% being the maximum. 01:38:55.200 --> 01:38:59.520 So you can see we're well within that range and actually above the maximum. 01:38:59.520 --> 01:39:06.120 Moving out to the 5-year, you can see we do just below it in the 5th year in 2025 to $5.6 01:39:06.120 --> 01:39:10.080 million with the minimum being $5.673. 01:39:10.080 --> 01:39:11.480 There's a couple of reasons for this. 01:39:11.480 --> 01:39:17.080 The main reason is you can see from '22 to '23, those wholesale agreements do go away. 01:39:17.080 --> 01:39:21.560 So you see rate revenue drop from $33.5 to $34.5. 01:39:21.560 --> 01:39:24.720 This is that $5 million associated with those agreements. 01:39:24.720 --> 01:39:28.400 If those are approved by PV and council or renewed, this will change the forecast. 01:39:28.400 --> 01:39:32.360 But currently we've taken the conservative approach and taken those out of the 5-year 01:39:32.360 --> 01:39:33.360 picture. 01:39:33.360 --> 01:39:40.800 The 5-year CIP, one thing I will say for the solid waste fund, they have transitioned over 01:39:40.800 --> 01:39:44.960 the last few years from debt funding, a lot of assets to revenue funding. 01:39:44.960 --> 01:39:49.480 You can actually see we have a minimum amount of debt planned for this fund, $3 million. 01:39:49.480 --> 01:39:53.760 This is for a fleet annex building at the solid waste facility. 01:39:53.760 --> 01:39:59.960 We have about $6.25 million in revenue funding and then $3.4 million in vehicle replacement. 01:39:59.960 --> 01:40:02.320 Did I hear somebody, Susan or? 01:40:02.320 --> 01:40:03.320 >> I'm sorry? 01:40:03.320 --> 01:40:04.320 >> Okay. 01:40:04.320 --> 01:40:06.600 I thought I heard someone ask the question. 01:40:06.600 --> 01:40:09.660 I was just -- didn't know if someone asked something or not. 01:40:09.660 --> 01:40:15.840 For the 5-year total for the CIP plan, you can see we have $41.5 million planned to kind 01:40:15.840 --> 01:40:18.960 of separate it out and give you a perspective of how much of that is a bond and how much 01:40:18.960 --> 01:40:19.960 of that is cash. 01:40:19.960 --> 01:40:25.520 We have $14.3 million in bond funding over a 5-year period with $27.1 million in revenue 01:40:25.520 --> 01:40:26.520 funding. 01:40:26.520 --> 01:40:30.080 So this fund is definitely healthy. 01:40:30.080 --> 01:40:34.320 Proposed rate changes, we are looking to make a few more updates in the solid waste rate 01:40:34.320 --> 01:40:39.160 ordinance this fiscal year prior to that detailed discussion in December. 01:40:39.160 --> 01:40:43.160 Valet shared services, so this is the downtown service for valet commercial services that 01:40:43.160 --> 01:40:45.000 was started last year. 01:40:45.000 --> 01:40:51.520 Under 2, the rate is currently 138.28, we are looking to decrease that rate to 74.16. 01:40:51.520 --> 01:40:54.760 This does align with the cost of service model that we are currently using that was updated 01:40:54.760 --> 01:40:56.520 two years ago. 01:40:56.520 --> 01:41:01.440 Yard waste services, currently this service is not offered to commercial businesses, so 01:41:01.440 --> 01:41:06.240 we are looking to put a rate in the ordinance for that of $75 per hour. 01:41:06.240 --> 01:41:09.560 This is consistent with the residential rate for yard waste service. 01:41:09.560 --> 01:41:13.060 The standard cart rate is currently 21.51. 01:41:13.060 --> 01:41:17.520 We are showing that dollar decrease that I discussed with you a couple slides ago, so 01:41:17.520 --> 01:41:21.520 you can see 20.51 would be the proposed rate for 20.21. 01:41:21.520 --> 01:41:28.800 The large cart, 26.26 is the current rate and then 25.04 would be with that decrease. 01:41:28.800 --> 01:41:32.200 Additional large cart, people can call in to order an additional large cart. 01:41:32.200 --> 01:41:35.360 We are looking to reduce this based on the cost of service model. 01:41:35.360 --> 01:41:39.320 So it goes from 17.38 to 16.57. 01:41:39.320 --> 01:41:46.280 We are looking to increase the gate rate from 46 to 48, and then the sludge, dewatered sludge 01:41:46.280 --> 01:41:49.800 landfill disposal rate from 46 to 50. 01:41:49.800 --> 01:41:53.420 One other thing down here at the bottom, we do have a note, we are looking to adjust the 01:41:53.420 --> 01:41:58.160 wholesale contracted rates by 2.3%, which is a CPI adjuster. 01:41:58.160 --> 01:42:02.560 This is identified in those contracts, and this does account for about 400,000 additional 01:42:02.560 --> 01:42:04.240 revenue per year. 01:42:04.240 --> 01:42:07.960 This is the slide I've shown you several times before. 01:42:07.960 --> 01:42:14.800 You can see the proposed overall bill for an average residential customer would be 229.56, 01:42:14.800 --> 01:42:20.000 so actually decreasing their utility bill by $2.08. 01:42:20.000 --> 01:42:23.640 It's the dates, as we said before, this August 10th date will more likely change based on 01:42:23.640 --> 01:42:27.520 the discussion with the PUV today, push that back later in August. 01:42:27.520 --> 01:42:31.200 Then September 15th, the City Council will adopt the budget, the tax rate, and capital 01:42:31.200 --> 01:42:32.200 improvement plan. 01:42:32.200 --> 01:42:35.800 And then we'll circle back with the PUV and City Council in November and December with 01:42:35.800 --> 01:42:39.000 a detailed budget, rate, and cost of service discussion. 01:42:39.000 --> 01:42:44.240 And with that, that concludes the presentation, and I will pull this down for questions. 01:42:44.240 --> 01:42:45.240 Yes. 01:42:45.240 --> 01:42:46.240 Yes, sir. 01:42:46.240 --> 01:42:47.240 Yes. 01:42:47.240 --> 01:42:48.240 Slide 52. 01:42:48.240 --> 01:42:51.680 Nick, can you put slide 52 back up? 01:42:51.680 --> 01:42:52.680 Sure. 01:42:52.680 --> 01:42:56.440 Hang on just a second. 01:42:56.440 --> 01:42:57.440 52. 01:42:57.440 --> 01:42:58.440 Yes, sir. 01:42:58.440 --> 01:42:59.440 Yeah. 01:42:59.440 --> 01:43:00.920 Yeah, that one. 01:43:00.920 --> 01:43:09.760 The bottom two rows, fiscal year 21-22, revenue is about half of what it is prior year. 01:43:09.760 --> 01:43:12.320 What's the reason for that, again? 01:43:12.320 --> 01:43:16.680 Let me go back to the – hang on just a second to the fine-year forecast here. 01:43:16.680 --> 01:43:19.400 This may help us answer your question. 01:43:19.400 --> 01:43:24.760 We do have some revenue funding in here, capital investment for that cell development. 01:43:24.760 --> 01:43:28.400 So if you remember, I made that comment earlier about the cell construction moving from 22 01:43:28.400 --> 01:43:29.400 to 21. 01:43:29.400 --> 01:43:30.400 Yes. 01:43:30.400 --> 01:43:33.720 So the majority of this money, to answer your question, is for the next cell development 01:43:33.720 --> 01:43:34.720 cost. 01:43:34.720 --> 01:43:37.640 We are looking to pay cash for the development of that cell. 01:43:37.640 --> 01:43:39.600 So that's about $5 million. 01:43:39.600 --> 01:43:42.080 Does that answer your question? 01:43:42.080 --> 01:43:46.280 So the reason it's not $9 million is because you're going to use half of it roughly to 01:43:46.280 --> 01:43:47.280 pay for new construction. 01:43:47.280 --> 01:43:48.280 Is that true? 01:43:48.280 --> 01:43:49.280 That's correct. 01:43:49.280 --> 01:43:50.280 Yeah. 01:43:50.280 --> 01:43:53.640 In 2021, we're going to use the majority of that money to pay for cash funding of the 01:43:53.640 --> 01:43:54.640 next cell development. 01:43:54.640 --> 01:43:58.480 And then, of course, in the five-year picture, we don't have a next cell plugged in. 01:43:58.480 --> 01:44:03.880 So the decrease in the 6.2 that you see here to the 1.9 is because we're building that 01:44:03.880 --> 01:44:06.400 cell in 2021. 01:44:06.400 --> 01:44:08.360 Okay. 01:44:08.360 --> 01:44:21.200 I also know the total working reserve is – we have above the maximum amount suggested. 01:44:21.200 --> 01:44:26.600 And I wonder if, when you contemplate issuing bonds, you ever have the discussion where 01:44:26.600 --> 01:44:32.760 you look at the total reserve and these numbers and evaluate, do you really need to issue 01:44:32.760 --> 01:44:36.560 another bond for these things? 01:44:36.560 --> 01:44:37.840 That's a great question. 01:44:37.840 --> 01:44:42.040 So we did, prior to coming to the PUB, when we met with management staff in the city, 01:44:42.040 --> 01:44:46.560 we did have $1.2 million plugged in this five-year bond program. 01:44:46.560 --> 01:44:50.320 Looking at the five-year forecast and the health of this fund, we did make the determination 01:44:50.320 --> 01:44:52.520 to cash fund that asset. 01:44:52.520 --> 01:44:58.360 With this being a building of $3 million, this fund could afford to cash fund in 2021. 01:44:58.360 --> 01:45:02.680 Staff just felt the most appropriate way to pay for this asset was bond funding it, since 01:45:02.680 --> 01:45:07.520 it is a building, and it will have longer than a 20-year life. 01:45:07.520 --> 01:45:12.080 So yes, to answer your question, we do look at the overall fund balance when considering 01:45:12.080 --> 01:45:14.480 what the revenue fund and what the debt fund. 01:45:14.480 --> 01:45:18.480 And I will say, you know, a big focus from the Solid Waste Fund, as you can see, in 2019, 01:45:18.480 --> 01:45:20.680 we had a debt service number of 8.9 million. 01:45:20.680 --> 01:45:25.120 You know, this fund from the financial department and the Solid Waste Department has done a 01:45:25.120 --> 01:45:29.560 great job of mitigating that debt issuance and cash funding more and more assets. 01:45:29.560 --> 01:45:34.120 And you can see out here, the debt service payment is cut in half, the 3.4 to 4.2 million. 01:45:34.120 --> 01:45:36.240 Well, that's a good thing. 01:45:36.240 --> 01:45:37.240 It's a great thing. 01:45:37.240 --> 01:45:41.240 And this is something to be proud of for the entire city. 01:45:41.240 --> 01:45:44.680 You really have made a lot of progress from the beginning. 01:45:44.680 --> 01:45:45.680 Absolutely. 01:45:45.680 --> 01:45:51.000 Other questions? 01:45:51.000 --> 01:45:56.040 Well, we did it. 01:45:56.040 --> 01:45:57.880 We did it. 01:45:57.880 --> 01:46:00.960 Thank you again for coming in today for the special called meeting. 01:46:00.960 --> 01:46:03.080 We really appreciate it. 01:46:03.080 --> 01:46:08.240 So Susan and PB members, one of the items that I will add to the Business Action Matrix 01:46:08.240 --> 01:46:12.080 will be a feature work session on the budget process. 01:46:12.080 --> 01:46:16.720 What we'd like to do is then come back to you along with the finance department and 01:46:16.720 --> 01:46:20.680 kind of walk you through what the process had been and kind of where we've been and 01:46:20.680 --> 01:46:25.040 then kind of turn that into just a work session discussion with you to give us some direction 01:46:25.040 --> 01:46:28.880 on what would you like that process to be going forward. 01:46:28.880 --> 01:46:29.880 Okay. 01:46:29.880 --> 01:46:30.880 Great. 01:46:30.880 --> 01:46:34.240 With that, do we have a motion to adjourn? 01:46:34.240 --> 01:46:36.240 I move we adjourn. 01:46:36.240 --> 01:46:37.240 All right. 01:46:37.240 --> 01:46:38.240 We're adjourned. 01:46:38.240 --> 01:46:39.240 Thank you. 01:46:39.240 --> 01:46:40.240 Thank you.