WEBVTT 00:00:00.000 --> 00:00:09.920 All right, Susan. You're right. It is nine o'clock and we do have a quorum, so it's called 00:00:09.920 --> 00:00:17.520 to order the Public Utilities Board meeting for September 14th, 2020. The first item is 00:00:17.520 --> 00:00:24.000 the consent agenda. Does any board member wish to pull an item from A through E? Yes, 00:00:24.000 --> 00:00:32.080 Billy. I'd like to pull item C as in cat, just for my entertainment. C as in cat. Any others? 00:00:32.080 --> 00:00:33.680 Thanks, Billy. 00:00:33.680 --> 00:00:46.320 If there's no others, do we have a motion to approve items A, B, D, and E? I so move. Second. 00:00:47.200 --> 00:00:57.840 Okay, all in favor say aye. Aye. Okay, item C. Well, my question is just like I said, 00:00:57.840 --> 00:01:02.560 it's for entertainment purposes, but I didn't realize that we had to do this. I think it's 00:01:02.560 --> 00:01:12.080 interesting. And notice that we didn't get a lot of bids on it, but I would assume not a lot of 00:01:12.080 --> 00:01:22.560 people do this. Is that correct? Aye. Good morning, Madam Chair, members of the board. 00:01:22.560 --> 00:01:28.320 My name is Brian Burner, Director of Solid Waste, and you are correct. This is a very small pool of 00:01:28.320 --> 00:01:35.440 individuals who do perform this service, and as a result, the number of people who can do this and 00:01:35.440 --> 00:01:41.040 then have capacity within their existing system to manage additional work is extremely limited, 00:01:41.040 --> 00:01:45.200 and it's not inconsistent with other bids at other cities that I've encountered. 00:01:45.200 --> 00:01:53.360 You usually have between one and three individuals who are responding to requesting this nature. 00:01:53.360 --> 00:02:02.960 So, Brian, I just had a quick question. Do all contracts like this have a piggyback clause? 00:02:07.200 --> 00:02:13.520 I'm sorry, you broke up on my end. I did not get the full question. I apologize. 00:02:13.520 --> 00:02:19.440 It was meant for humor. Do all contracts like this have a piggyback clause? 00:02:19.440 --> 00:02:26.960 Again, I'm sorry. I did not get it from this end. 00:02:32.880 --> 00:02:37.600 Do all contracts have a piggyback clause? A piggyback clause? 00:02:37.600 --> 00:02:49.280 Come on, it's Monday, but wake up there. It is. I can't say that it does. I had a couple 00:02:49.280 --> 00:02:56.800 of other jokes myself, but I appreciate that one. All is good fat, and days get slaughtered. 00:02:56.800 --> 00:03:02.000 Any other questions? Go on all day. 00:03:03.440 --> 00:03:07.280 Do we know what they're going to do with all of these animals? 00:03:07.280 --> 00:03:12.800 That's up to them? We do. 00:03:12.800 --> 00:03:25.360 Brian, if you could hold off for one second. Let me see if we can find out from Billy. 00:03:25.360 --> 00:03:28.000 It looks like we're having some technical problems here. 00:03:28.640 --> 00:03:34.000 You're all frozen. If you could just give us one quick second here, let's get with Billy 00:03:34.000 --> 00:03:47.760 and find out if that's something on our side. It's 9.08, and we're back on. We were discussing 00:03:47.760 --> 00:03:56.800 consent agenda item C, the feral hawk. Are there any other questions of the board? 00:03:58.720 --> 00:04:01.600 None here. Do we have a motion? 00:04:01.600 --> 00:04:04.480 Move approval. Second. 00:04:04.480 --> 00:04:08.480 All in favor say aye. Aye. 00:04:08.480 --> 00:04:16.640 Motion carries. Now we are to recess the regular meeting and go into a work session. 00:04:16.640 --> 00:04:20.800 Is there anything else we need to do, Tony, other than just an answer? 00:04:20.800 --> 00:04:24.560 No, ma'am. We'll have Nick on the line. He'll be walking through the presentation. 00:04:25.680 --> 00:04:29.600 The first item is the work sessions. Receive a report, hold a discussion, 00:04:29.600 --> 00:04:34.080 and give staff direction regarding the proposed water, electric, solid waste, 00:04:34.080 --> 00:04:38.880 wastewater, and miscellaneous rates for fiscal year 2020 to 2021. 00:04:38.880 --> 00:04:44.400 Good morning, chair, PV members, Nick Vinson, assistant director of finance. As Tony said, 00:04:44.400 --> 00:04:49.360 I'll walk you through a brief presentation to talk about the 2021 proposed rate changes with you. 00:04:49.360 --> 00:04:54.640 Really quick, before we get started, just kind of as a recap for all the PV members, 00:04:54.640 --> 00:05:00.160 on September 4th, we did give each one of you a memo with supporting documentation that included 00:05:00.160 --> 00:05:04.800 the red line rate ordinances. And that memo and supporting documentation is really meant to be 00:05:04.800 --> 00:05:09.680 provided before this meeting to allow sufficient time for questions and comments from the public 00:05:09.680 --> 00:05:14.720 utility board members. So today we'll walk through a work session item really quick, 00:05:14.720 --> 00:05:18.240 have a brief discussion, see if you have any questions. There's plenty of staff members 00:05:18.240 --> 00:05:22.240 online from each of the utilities to address the questions if you have them. And if not, 00:05:22.240 --> 00:05:25.440 we will seek your approval later in this meeting through an individual consideration 00:05:25.440 --> 00:05:30.880 item for each of the utilities. With that, I will pull up the presentation and get started. 00:05:30.880 --> 00:05:44.880 Bear with me here. 00:05:52.240 --> 00:06:14.880 A little bit of difficulty finding my presentation. Hang on just a second. 00:06:22.240 --> 00:06:34.080 Tony, I don't know if I'll be able to share my screen here. Give me just a second. I may have 00:06:34.080 --> 00:06:39.520 to... Nick, if you want, we can pull it up here if you want. That'd be great if you wouldn't mind. 00:06:39.520 --> 00:06:44.880 Yeah, Cassie's coming up and she'll kind of pull it up on our side and drive for you. Perfect. 00:06:52.800 --> 00:06:54.880 Okay. 00:06:54.880 --> 00:07:21.760 Pull it up on our side and drive for you. Perfect. 00:07:22.240 --> 00:07:30.480 All right, Nick, it's up. Okay, perfect. Yeah, Cassie, if you want to blow it, thank you. And 00:07:30.480 --> 00:07:35.440 then just go to the first slide really quick. So real quick, just a high-level overview, then we'll 00:07:35.440 --> 00:07:39.440 walk through each of the changes again. So we'll discuss the water rate changes with you, electric 00:07:39.440 --> 00:07:43.760 rate changes, solid waste rate changes, really discuss those next steps, what's coming up here 00:07:43.760 --> 00:07:48.480 in the next month or two, and address any questions that you had as I previously stated. One thing I 00:07:48.480 --> 00:07:51.680 want to say before we get started, we are not talking about the wastewater rates today or the 00:07:51.680 --> 00:07:56.160 miscellaneous rates. There are no recommended changes to those rate ordinances, so they actually 00:07:56.160 --> 00:08:00.480 will carry forward, the existing ones will carry forward in the next year. So we'll only be talking 00:08:00.480 --> 00:08:10.480 about the three utilities today. Next slide, please. So proposed changes for water, as we 00:08:10.480 --> 00:08:16.560 discussed with the public utility board last week or a couple of weeks ago, actually on August 24th, 00:08:16.560 --> 00:08:22.160 there's a 2% rate decrease for inside the city, residential and commercial customers. And there 00:08:22.160 --> 00:08:26.960 were two different options that were presented to the public utility board, option one being a cost 00:08:26.960 --> 00:08:32.400 of service decrease that you can see in this table, and option two being a cost of board decrease. 00:08:32.400 --> 00:08:37.040 We did receive direction from the public utility board to proceed with option one. So the red line 00:08:37.040 --> 00:08:43.760 rate ordinances fronted you today is based on the cost of service model and assumptions. So as you 00:08:43.760 --> 00:08:48.080 can see, the facility charge for a residential customer with a three quarter inch meter will go 00:08:48.080 --> 00:08:55.600 to 16 to 1584. And then that first tier is zero to 15,000 gallons would go from 415 to 405. 00:08:55.600 --> 00:09:00.480 Commercial inside customers, same thing here. This was a cost of service decrease. The facility 00:09:00.480 --> 00:09:06.160 charge, a two inch meter is our most common meter for commercial customers. This would go from 5150 00:09:06.160 --> 00:09:11.840 to 5131. And then the volume charge, there's not a tier structure in place. It does charge per 00:09:11.840 --> 00:09:20.720 thousand gallons. It's 445 going to 434. This decrease does vary based on the size of meter 00:09:20.720 --> 00:09:24.560 that a customer has and then which tier that they're in. And that's included in your backup 00:09:24.560 --> 00:09:32.640 material. Next slide. Water rate changes continued. These are contractual rates that we'll be adjusting 00:09:32.640 --> 00:09:36.800 this year. This is something we bring forward to the public utility board and city council each year 00:09:36.800 --> 00:09:40.880 based on those contractual agreements we have with these entities. So the first one would be the 00:09:40.880 --> 00:09:45.120 wholesale raw water service to the Upper Trinity Regional Water District. And the current rate is 00:09:45.120 --> 00:09:52.640 0.7401. And this rate will go to 0.7578. This is based on 85% of the Dallas wholesale rate. 00:09:52.640 --> 00:09:57.360 And the second one being the Lake Chapman pass through rate. And this is adjusted each year based 00:09:57.360 --> 00:10:03.280 on the CPI adjuster for the month of June. And the current rate is 0.0270. That rate will be going to 00:10:03.280 --> 00:10:11.520 0.0275. Next slide. Electric rate changes. The redline ordinance with electric utility was included 00:10:11.520 --> 00:10:15.120 in your backup. We'll be available to answer questions after this presentation if you have them. 00:10:15.120 --> 00:10:19.600 Really quick, we are looking to discontinue several rates. The first one being the residential 00:10:19.600 --> 00:10:25.280 renewable service rider, also referred to as RG. All customers are receiving 100% renewable energy. 00:10:25.280 --> 00:10:29.600 So we are looking to discontinue this rate. The next one being the weekend service, also referred 00:10:29.600 --> 00:10:35.040 to as WK. We're looking to discontinue this rate. A recent audit did reveal that customers are 00:10:35.040 --> 00:10:40.800 hitting their monthly demand peak outside of those designated weekend hours. Downtown decorative 00:10:40.800 --> 00:10:46.640 lighting, DDL, we are looking to do away with this also. The dark fiber rate, we are looking 00:10:46.640 --> 00:10:53.120 to discontinue this. Fiber is no longer a service under DME. And then the commercial renewable energy 00:10:53.120 --> 00:10:59.360 services, CGR, all customers similar to residential are receiving 100% renewable energy. So we are 00:10:59.360 --> 00:11:05.200 looking to discontinue this rate. And then independent wholesale generator, IWG. And then 00:11:05.200 --> 00:11:09.760 DME has never utilized this rate to purchase energy from non-renewable wholesale generators. So we're 00:11:09.760 --> 00:11:14.080 looking to do away with that. And as previously stated, there are 186 residential customers that 00:11:14.080 --> 00:11:20.400 will be impacted by the RG rate being discontinued with an annual savings of 47.36. Next slide, 00:11:20.400 --> 00:11:26.000 please. Solid waste proposed rate changes. I'll start at the top really quick and work our way 00:11:26.000 --> 00:11:31.440 down. The valid shared service for commercial customers, we are looking to decrease the tier 00:11:31.440 --> 00:11:36.800 two rate based on that cost of service model for the solid waste fund. The rate is currently 138.28. 00:11:36.800 --> 00:11:41.600 We're looking to take that rate to 74.16. Yard waste service, we are looking to implement that 00:11:41.600 --> 00:11:47.440 commercial yard waste collection service similar to residential. The rate is $75 per hour. We're 00:11:47.440 --> 00:11:52.480 looking to build that on 15 minute increments. And then the standard cart rate decrease, this is that 00:11:52.480 --> 00:11:58.800 5% decrease or $1 a month for a standard cart customer. You can see that rate going from 21.51 00:11:58.800 --> 00:12:06.640 to 20.51. And then a large cart customer going from 26.26 to 25.04. And then the additional 00:12:06.640 --> 00:12:13.120 large cart going from 17.38 to 16.57. And then a gate disposal rate for non-city-dent customers, 00:12:13.120 --> 00:12:19.040 we are looking to increase this based on the amount of volume coming into the city's landfill. 00:12:19.040 --> 00:12:24.800 So we're looking to increase this rate from $46 a ton to 48. And then sludge dewatered, 00:12:24.800 --> 00:12:29.200 we are looking to increase this from 46 to 50. And then there is a note here at the bottom, 00:12:29.200 --> 00:12:33.760 as previously communicated, we are looking to adjust those wholesale contract agreements 00:12:33.760 --> 00:12:39.680 based on those adjustments that are called out in that contract. It's 2.3% is the CPI adjuster, 00:12:39.680 --> 00:12:45.840 which is an additional 400,000 in revenue. Next slide, please. This is the table that summarizes 00:12:45.840 --> 00:12:50.640 the rate changes and the rate decreases for the water and solid waste utility. Starting at the 00:12:50.640 --> 00:12:56.240 top, you can see the average residential customer for electric service is paying $124.80 for water. 00:12:56.240 --> 00:13:02.800 Going forward into 2021, be paying $53.10. Wastewater based on 5,400 gallons of wastewater 00:13:02.800 --> 00:13:10.880 would be $31.52. Solid waste is $20.51 for a total of $2.29.93. So really overall, 00:13:10.880 --> 00:13:18.720 a decrease of $2.08 for both of those utilities. Next steps. So today is September 14th. We are 00:13:18.720 --> 00:13:23.360 looking for your feedback to address any questions during this work session item. This will go forward 00:13:23.360 --> 00:13:30.160 to the city council on September 22nd for adoption, along with the budget and the capital plan, 00:13:30.160 --> 00:13:34.480 and then circling back with the public utility board with that detailed rate and budget discussion 00:13:34.480 --> 00:13:41.360 in December as previously mentioned. And then that concludes the presentation. And we'll pull it down. 00:13:41.360 --> 00:13:44.960 And if you have any questions, I can address them. If there's something I can't answer, 00:13:44.960 --> 00:13:48.560 Kenny's on the phone. We have Chris Lutruc. We have Terry Nalt. We have a bunch of people on 00:13:48.560 --> 00:13:55.680 the phone that can address your questions. I have a question. Yes, sir. The water rate, 00:13:55.680 --> 00:14:02.400 we charge Dallas compared to the water rate we charge Upper Trinity. Upper Trinity is 85% 00:14:03.280 --> 00:14:09.520 of the Dallas rate. What's the rationale for the disparity there? What's the reason for the 00:14:09.520 --> 00:14:15.760 difference? Why do we only charge a percentage of Dallas wholesale rated? Mr. Baffert, is that 00:14:15.760 --> 00:14:22.560 your question? Correct. Why do we charge the two different entities, different unit prices? So Kenny 00:14:22.560 --> 00:14:26.400 Banks on the phone, he may be familiar with the agreement. I know in the agreement, it does call 00:14:26.400 --> 00:14:31.920 out 85% of that wholesale rate. Kenny's on the phone or Frank Pugsley will be able to address 00:14:31.920 --> 00:14:44.320 that question also. Kenny, are you on the phone? 00:15:02.720 --> 00:15:07.040 And Mr. Baffert, if he's not on the phone, we can follow up with you and get you a response to that. 00:15:07.040 --> 00:15:11.120 Tony, did you want to say something different? Yeah. Let me send Kenny a text and if there's 00:15:11.120 --> 00:15:16.400 other questions, we can come back to this one. Okay. Of course. Can you hear me now? Yes. Yes, 00:15:16.400 --> 00:15:23.440 sir. Okay. Oh, great. Thank you. Sorry. Had a little technical difficulty there. Kenny Banks, 00:15:23.440 --> 00:15:31.680 general manager of utility. Good morning board members. Nick is correct. That wholesale rate was 00:15:31.680 --> 00:15:39.680 negotiated with the opportunity, and it was essentially a form of competitiveness. It was 00:15:39.680 --> 00:15:46.560 put in place many years ago, but essentially, they've got an opportunity to buy Dallas water. 00:15:46.560 --> 00:15:53.040 They've got an opportunity to buy water from the city of Denton. It was simply based on our overall 00:15:53.040 --> 00:16:04.560 water rights. And so we were essentially able to negotiate with them effectively in 85 percent 00:16:04.560 --> 00:16:14.160 of the total of the Dallas rate. So it really was just a contractual negotiation that 00:16:14.160 --> 00:16:20.160 had come before the board and council many years ago. And it was just an attempt to be competitive 00:16:20.160 --> 00:16:26.560 and ensure that the opportunity had an economic incentive to purchase the available wholesale 00:16:26.560 --> 00:16:33.840 water from the city of Denton first. Okay. Thank you. And how long is that contract? What is the 00:16:33.840 --> 00:16:43.440 term? That contract is currently in place, but we need to renegotiate it. And so we are actively 00:16:43.440 --> 00:16:53.680 in process of doing that now. Okay. So we've been kind of operating under the contract as it exists, 00:16:53.680 --> 00:17:01.360 but we definitely are in talks right now to renegotiate. Okay. Thank you. Other questions? 00:17:01.360 --> 00:17:08.480 I have a question about the landfill rates. You're not going to fund the Denton 00:17:10.720 --> 00:17:16.480 residences to take to the landfill. You're going on the non-Denton residents, correct? 00:17:16.480 --> 00:17:20.800 That's correct. Yes ma'am. The rate would only increase for non-city of Denton residents. The 00:17:20.800 --> 00:17:30.000 city of Denton residents rate would stay the same. Thank you. Charlie, go ahead. Okay. I have a 00:17:30.000 --> 00:17:37.040 question and a couple of comments. I'm fixating on the water rates. First of all, just an editorial 00:17:37.040 --> 00:17:46.720 comment for future years. It seems to me that we're micromanaging our customers if our water 00:17:46.720 --> 00:17:55.600 rates take 20 pages to list all the different water rates and tables. That seems like micromanagement 00:17:55.600 --> 00:18:00.640 to me. Second, I've mentioned this before, but I'll mention it again. It's my opinion that the 00:18:00.640 --> 00:18:08.880 top two tiers of residential are overly punitive. I agree we want to discourage waste, but some of 00:18:08.880 --> 00:18:16.160 our older neighborhoods, the houses just use more water. And if we're wanting to, let's say, I 00:18:16.160 --> 00:18:21.760 believe the Denton plan says we want to maintain the rural character of many of our neighborhoods. 00:18:21.760 --> 00:18:27.360 If we want to do that, we've got to make it possible for people to use water to irrigate at 00:18:29.280 --> 00:18:36.480 reasonable prices. And I think the comparison, if I read the 20-page document, we charge buckies and 00:18:36.480 --> 00:18:44.240 we charge Acme Brick a maximum of $6 per thousand for irrigation, and we charge them $4.34 per 00:18:44.240 --> 00:18:52.400 thousand, regardless of the amount of use. By comparison, some residential users are being 00:18:52.400 --> 00:19:00.640 charged $10.64. And I think one and a half times what luck is paying seems excessive to me. And 00:19:00.640 --> 00:19:07.440 the other comment that I want to make is that on our water bills, nobody sees the details of 00:19:07.440 --> 00:19:14.560 the calculation. All they see is a gallon amount and a price. If we're wanting to use the rates 00:19:14.560 --> 00:19:20.400 to motivate certain behaviors, we ought to show a little more clearly to our customers 00:19:22.160 --> 00:19:30.000 what happens to your rate when you go up. Anyway, that's all of my comments. My question is, 00:19:30.000 --> 00:19:37.280 it looks like our cheapest rate is $4.05 per thousand for anybody at a retail kind of level. 00:19:37.280 --> 00:19:42.080 Does that exceed the cost of our water production or are we subsidizing at that rate? 00:19:42.080 --> 00:19:50.320 Mr. Parker, no. It is believed that that rate covers our cost of water production, 00:19:50.320 --> 00:19:55.040 is sufficient to cover our cost of water production. And then what we plan to do is when 00:19:55.040 --> 00:19:58.960 we circle back, so we're right in the middle of a cost of service study now, we're actually 00:19:58.960 --> 00:20:04.080 wrapping that up. And when we come back to you, going back to your comment about the top two 00:20:04.080 --> 00:20:09.280 tiers that actually fits into that volume discussion that you're talking about with that rate. That is 00:20:09.280 --> 00:20:13.200 something we've discussed with the consultant previously, and we continue to discuss with them, 00:20:13.200 --> 00:20:17.120 and actually the board members have brought it before the city council members. So we do intend 00:20:17.120 --> 00:20:21.760 to address that with you this coming November, December, discussing those tiers and what the 00:20:21.760 --> 00:20:25.600 public utility board and the city council would like that to look like. But to answer your question, 00:20:25.600 --> 00:20:29.200 yes, that volume rate does recover our cost of producing water. That is correct. 00:20:29.200 --> 00:20:41.840 All right. Well, then we will reconvene into the regular meeting. 00:20:45.280 --> 00:20:50.240 The first item is to consider the approval of the August 24th, 2020 minutes. Does anybody 00:20:50.240 --> 00:20:58.800 have any changes or corrections? I move we approve. Second. All in favor, say aye. 00:20:58.800 --> 00:21:09.200 Next item is consider recommending the approval of the water fiscal year 2020-2021 operating in 00:21:09.200 --> 00:21:17.760 capital budget. Chair, PB members, Nick Vinson again. I have several items on the individual 00:21:17.760 --> 00:21:23.120 consideration for your approval today. Walking through, I do have a short presentation if you'd 00:21:23.120 --> 00:21:28.000 like to see that pro forma again for the water utility, be happy to pull it up. If not, we are 00:21:28.000 --> 00:21:35.040 looking for your approval today regarding the 2020-2021 budget. Does the board member want to 00:21:35.040 --> 00:21:40.560 see it again or? I think this is the same thing we've seen before, is it not? Correct. Yes, sir, 00:21:40.560 --> 00:21:48.000 Mr. Baffert is. You did see this before on August 23rd and August 24th. It's a 10-year 00:21:48.000 --> 00:21:53.600 forecast for the water utility, so absolutely you did see it before. I move we approve. 00:21:53.600 --> 00:22:01.200 All right. Do we have a second? Oh, Ed seconds. All in favor, say aye. Aye. 00:22:03.360 --> 00:22:09.200 Motion carries. All right, the next item is consider recommending the adoption of an ordinance. 00:22:09.200 --> 00:22:23.680 I'm sorry. You're on C. Yeah. Wastewater. Wastewater drainage. Sorry, my pages got mixed up here, 00:22:23.680 --> 00:22:30.480 sorry. Yeah, consider approval of wastewater drainage fiscal year 2021 operating in capital 00:22:30.480 --> 00:22:35.200 budgets. Again, is this the same? This is the same presentations we've seen. That is correct, 00:22:35.200 --> 00:22:40.320 yes ma'am. Any board member wish to have any further discussion? 00:22:40.320 --> 00:22:53.840 Do we have a motion? Move approval. Second. All in favor, say aye. Aye. Aye. Opposed? Motion 00:22:53.840 --> 00:23:00.080 carries. Consider recommending the approval of the electric fiscal year 2021 operating in capital 00:23:00.080 --> 00:23:09.120 budgets. Any further discussion on this item? I guess my comment on all these would be what's 00:23:09.120 --> 00:23:13.040 changed? Have any of these presentations changed since we saw them last time? 00:23:13.040 --> 00:23:18.160 Sir, and I'll be happy. Cassie, are you available to pull up the presentation really quick or I can 00:23:18.160 --> 00:23:22.960 just show them the performance if you're available to pull it up? I don't think it's on my screen here. 00:23:25.280 --> 00:23:30.480 Yes, Mr. Baffert, let me let me walk you through really quick just to reassure you. So if you 00:23:30.480 --> 00:23:34.400 wouldn't mind just going back to the beginning really quick. Cassie, I think we can start there 00:23:34.400 --> 00:23:39.520 maybe. So the water pro forma, this is the 10-year forecast. Nothing has changed. You can see the 00:23:39.520 --> 00:23:44.960 proposed 2021. We have that 2% rate decrease and the reserves are sufficient to be above those 00:23:44.960 --> 00:23:51.680 minimum reserve requirements. The debt coverage ratio is 1.25 in the proposed budget or above. 00:23:51.680 --> 00:23:57.600 Actually, it's 2.69. And then wastewater really quick, the next one. Same thing here, no change. 00:23:57.600 --> 00:24:02.480 There are no rate adjustments to the wastewater utility. You can see that 5% rate decrease we 00:24:02.480 --> 00:24:09.280 had in 2029. You know, in this utility is similar to water. The reserve is above the minimum reserve 00:24:09.280 --> 00:24:15.840 requirement of 13.3 with that minimum being 15.4 and the debt coverage ratio of 2. So it is well 00:24:15.840 --> 00:24:22.080 above that 1.25. And the next one I believe is a solid waste. This one will be considered for 00:24:22.080 --> 00:24:29.200 approval here shortly. No changes here. This is just consider the 5% or $1 decrease for a standard 00:24:29.200 --> 00:24:33.120 solid waste customer. So no changes to the solid waste 5-year forecast. 00:24:33.120 --> 00:24:38.000 Could I say something here, Nick? Yes, sir. I appreciate how you've highlighted the line that 00:24:38.000 --> 00:24:44.880 says use of reserves. Yes, sir. That's an important piece of information and I appreciate seeing that 00:24:44.880 --> 00:24:50.880 and how you've highlighted it like that. Okay. You're welcome. And then Cassie, if you don't mind, 00:24:50.880 --> 00:24:55.200 electric pro forma really quick. So to answer your question, Mr. Bafford, there are no changes to 00:24:55.200 --> 00:25:01.280 electric pro forma. This does not consider any rate changes. We have that no sell the TMP facility 00:25:01.280 --> 00:25:06.320 included in this pro forma. We do have that $21 million in decommissioning costs associated 00:25:06.320 --> 00:25:10.960 with that facility. And then that return on investment increasing from three and a half to 00:25:10.960 --> 00:25:18.640 6%. And it does return back down starting in the fiscal year 2023 to 3.5%. So there are no changes 00:25:18.640 --> 00:25:24.320 to the electric pro forma either. And then that's it. I think that concludes this short presentation. 00:25:24.320 --> 00:25:29.040 Just talking about the adoption. So city council will adopt the budgets, the rates, everything on 00:25:29.040 --> 00:25:34.400 September 22nd, allowing that time for citizens input on September 15th, and then circling back 00:25:34.400 --> 00:25:39.760 with you in December with that detailed rate, cost of service and budget discussion. So there are no 00:25:39.760 --> 00:25:49.520 changes to the reform as to answer your question. I move we approve. All right. Second. Seconds. 00:25:49.520 --> 00:25:56.160 All in favor say aye. Aye. Motion carries. Since we've already seen the presentation, 00:25:56.160 --> 00:26:03.200 do we have a motion to approve the solid waste fiscal year 2021 operating in capital budget? 00:26:04.320 --> 00:26:13.520 So I'll move. Second. Okay. All in favor say aye. Aye. Aye. Opposed? Motion carries. 00:26:13.520 --> 00:26:20.240 Consider recommending the approval of the customer service fiscal year 2021 operating budget. 00:26:20.240 --> 00:26:25.360 That wasn't in the presentation. But we have the presentation available and Christa's on 00:26:25.360 --> 00:26:29.440 the phone today if you have questions. Like I previously stated, customer service used to be 00:26:29.440 --> 00:26:34.160 part of the water utility. We did break it out for transparency. At that time, we did communicate to 00:26:34.160 --> 00:26:37.840 the public utility board. We continue to bring it back to you. So it is in front of you today 00:26:37.840 --> 00:26:43.360 for approval before going to city council. Do you wish to see the presentation board? 00:26:43.360 --> 00:26:55.200 Nope. I'm good. I move we approve. Thank you. All in favor say aye. Aye. Motion carries. Now 00:26:55.200 --> 00:27:01.120 we'll go into the various rates. Item G is consider recommending the adoption of an ordinance 00:27:01.120 --> 00:27:06.320 establishing the rates for water and water service providing for repealer and providing 00:27:06.320 --> 00:27:14.240 for severability cause and providing for an effective date. Any questions from the board? 00:27:14.240 --> 00:27:21.280 Do we have a motion to approve those rates? I move we approve. 00:27:22.720 --> 00:27:31.200 Do we have a second? I have seconds. All in favor say aye. Aye. Aye. Any opposed? Motion carries. 00:27:31.200 --> 00:27:36.720 Consider recommending the adoption of an ordinance establishing the rates for electric 00:27:36.720 --> 00:27:41.200 service providing for a repealer providing for a severability clause and providing for 00:27:41.200 --> 00:27:44.880 an effective date. Are there any questions on those rates from the board? 00:27:47.520 --> 00:27:55.360 Do we have a motion to approve? I move. And a second? I have seconds. All in favor say aye. 00:27:55.360 --> 00:28:03.840 Aye. Aye. Opposed? Motion carries. Consider recommending the adoption of an ordinance 00:28:03.840 --> 00:28:10.560 establishing rates for solid waste and recycling collection service repealing ordinance 192523 00:28:10.560 --> 00:28:15.200 providing for a repealer and providing a severability clause and providing for an 00:28:15.200 --> 00:28:25.600 effective date. Any questions? Do we have a motion to approve? So moved. Thank you Karen. Second. 00:28:25.600 --> 00:28:36.160 All in favor say aye. Aye. Aye. That one carries. And item J consider recommending the adoption of 00:28:36.160 --> 00:28:42.640 an ordinance of the City of Denton Texas amending the fiscal year 2019-2020 budget 00:28:42.640 --> 00:28:48.560 an annual program of services of the City of Denton to offer the adjustments to the electric fund of 00:28:48.560 --> 00:28:54.000 three million dollars for the purpose of purchasing the gas to energy facility and increase the general 00:28:54.000 --> 00:28:59.200 fund return on investment declaring a public purpose providing the severability clause and 00:28:59.200 --> 00:29:04.960 an open meetings clause in an effective date. And then Susan I do have one slide to walk the 00:29:04.960 --> 00:29:14.240 PUB members through this budget amendment. I will pull that up for you. So we are looking to amend 00:29:14.240 --> 00:29:21.280 the 1920 adopted budget today for the electric utility. Staff has been evaluating and each year 00:29:21.280 --> 00:29:26.400 what we do is we go through each of the budgets in the current fiscal year about this time to make 00:29:26.400 --> 00:29:30.800 sure that each fund has sufficient appropriations to get through the remainder of September 00:29:31.440 --> 00:29:36.320 leading up to the end of the fiscal year. Staff does feel like after looking at the electric fund 00:29:36.320 --> 00:29:41.200 and looking at purchase power and looking at some of the increases we had this actual fiscal year 00:29:41.200 --> 00:29:45.040 that wasn't included in the original budget we feel like we do need a budget amendment for the 00:29:45.040 --> 00:29:50.160 electric utility. So as stated on the slide we are looking to increase expense authority for the 00:29:50.160 --> 00:29:55.760 electric fund by three million dollars and this will increase the expense authority from 229.2 00:29:55.760 --> 00:30:02.720 million to 232.2 million. This will go towards funding and in providing that expense authority 00:30:02.720 --> 00:30:09.040 for the increased ROI that was mentioned on the 10-year forecast from 3.5 percent to 6 percent. 00:30:09.040 --> 00:30:15.920 So 1.9 will go towards that and then 1.1 will go towards the DTE's facility purchase and this was 00:30:15.920 --> 00:30:20.160 considered for approval by the Public Utility Board and City Council a few weeks ago and that 00:30:20.160 --> 00:30:25.280 purchased it till 2.75. So staff feels like we can find appropriation authority within the budget to 00:30:25.280 --> 00:30:30.080 fund the remainder of that facility but we do feel like we need to increase expense authority for 1.1 00:30:30.080 --> 00:30:35.520 million. And then next steps this will go to City Council each year we do take the budget amendments 00:30:35.520 --> 00:30:40.320 if there is one necessary to City Council usually on the date of budget adoption for the next fiscal 00:30:40.320 --> 00:30:45.760 year. So we will take this forward to City Council on September 22nd for approval. Now I'll pull this 00:30:45.760 --> 00:30:50.960 down and address any questions you may have. Thank you. Are there any questions? 00:30:55.440 --> 00:30:57.920 All right do we have a motion to approve this item? 00:30:57.920 --> 00:31:06.800 I move we approve. Thank you Russ. Do we have a second? I'll second. All in favor say aye. 00:31:06.800 --> 00:31:15.520 Aye. Opposed? Carries. Management reports. So Madam Chair we do have a couple items or 00:31:15.520 --> 00:31:20.800 few items on there. The first one is a memo following up with the PB on a request for this 00:31:21.600 --> 00:31:27.680 root cost analysis on various issues that may occur from time to time. Frank Pugley's put 00:31:27.680 --> 00:31:31.360 that together you have that in front of you. If you have any questions I think he's on the line 00:31:31.360 --> 00:31:35.440 but also Kenny Banks on the line can talk a little bit further if there's any questions from the 00:31:35.440 --> 00:31:42.720 members. Yes I have a question and this is something I initially brought up and I wondered if we could 00:31:42.720 --> 00:31:50.560 see the actual template that has been created to do this. I assume it's a spreadsheet of some kind 00:31:50.560 --> 00:31:56.320 but I don't know that. We can certainly follow up with you and get that to you for you to review. 00:31:56.320 --> 00:32:02.480 Okay one other thing that's important in doing this kind of thing is to have some kind of a 00:32:02.480 --> 00:32:09.280 tracking mechanism to follow up on the progress of any action items that come out of this analysis 00:32:09.280 --> 00:32:18.000 and that's important. It doesn't really do as much good to have a report and stick it in a drawer 00:32:18.000 --> 00:32:22.160 and never look at it again but if there's something that we need to do differently 00:32:22.160 --> 00:32:27.120 we need to be able to track the action that we take toward that 00:32:27.120 --> 00:32:36.720 toward that end and then after this is done I think it should be periodically I don't want to 00:32:36.720 --> 00:32:42.480 tell you what kind of frequency it should be but periodically the results of this should be shown 00:32:42.480 --> 00:32:49.360 to the utility board so we can look at it talk about it a little bit yeah we can certainly follow 00:32:49.360 --> 00:32:55.840 up with you you know I think we're customarily do things on an annual by annual basis you know 00:32:55.840 --> 00:33:04.480 and so we can certainly follow up with you on that okay okay if there's uh no other questions 00:33:04.480 --> 00:33:11.280 the uh the next items that you have in front of you are just future agenda items um certainly 00:33:11.280 --> 00:33:16.800 if there's any questions on those and then did want to mention that uh on the one outstanding 00:33:16.800 --> 00:33:22.640 request that we had um there is a briefing tomorrow with the city council and call session 00:33:22.640 --> 00:33:29.120 of our legal department uh on on the pub's request on that lawsuit information and so we 00:33:29.120 --> 00:33:35.280 hope that once we get direction legal we'll be providing to the pub kind of the outcome of that 00:33:37.120 --> 00:33:44.720 thank you thank you so with that susan that that uh concludes that section question please 00:33:44.720 --> 00:33:51.520 oh I'm sorry go ahead yeah this is sort of I could be under new business but it's a question 00:33:51.520 --> 00:33:59.440 and this might be for dr banks um I'm curious to know if if there the city has or utilities have 00:33:59.440 --> 00:34:10.000 any information um forecasting or regarding possible climate change impacts in the future to 00:34:10.000 --> 00:34:13.440 city and utility assets and operations 00:34:19.680 --> 00:34:30.640 board members can you hear me yes good um yes uh we um we do have information regarding climate 00:34:30.640 --> 00:34:37.520 projections uh ed I'm sorry you I wasn't able to catch the last part of your question could you 00:34:37.520 --> 00:34:44.160 repeat it again just so I'd be sure that I'm being thorough on this sure sure just basically what what 00:34:44.160 --> 00:34:53.520 you find are potential climate change impacts to city services and and assets operations that sort 00:34:53.520 --> 00:35:02.320 of thing right um we are working right now on the beginnings of a of a resiliency project which is I 00:35:02.320 --> 00:35:09.200 believe what you're you're kind of uh going towards with regards to the idea of impact 00:35:09.200 --> 00:35:17.680 right we are we're taking the results from our initial uh basically greenhouse gas management 00:35:17.680 --> 00:35:24.880 and initial work that we've done on emissions combining that with projections regionally and 00:35:24.880 --> 00:35:33.200 then looking on with regards to resiliency for things like weather impacts changes in rainfall 00:35:33.200 --> 00:35:39.600 patterns etc we still got some work to do on that it's a big project but it is something that we're 00:35:39.600 --> 00:35:45.040 working on right now and we could bring back to the public utility board when we're a little bit 00:35:45.040 --> 00:35:51.280 closer to completion yeah I think that'd be great if you could share with us uh just progress 00:35:51.280 --> 00:35:58.240 reports basically uh along the way and especially if there's anything that we can provide in the way 00:35:58.240 --> 00:36:05.760 of input um but I would like to you know be informed about the progress and target dates 00:36:05.760 --> 00:36:11.920 and that sort of thing so thanks yes we can definitely do that thank you very much I agree 00:36:11.920 --> 00:36:21.920 yeah all right any other questions then we're into concluding items does any board member wish to 00:36:21.920 --> 00:36:28.080 acknowledge a staff member or ask for something to be placed on the agenda I have an acknowledgement 00:36:28.560 --> 00:36:38.000 I received a flyer in the mail detailing all the road construction when it be finished and etc and I 00:36:38.000 --> 00:36:45.840 think that that's terrific that kind of communication with with with the residents is is just exactly the 00:36:45.840 --> 00:36:51.200 sort of thing that that needs to be done to so that everybody knows what's been done and what's 00:36:51.200 --> 00:37:00.400 going to be done so thanks to the folks who put that together thank you yes Karen I I just had a 00:37:00.400 --> 00:37:05.600 quick question I wasn't able to make the tour Ray Roberts I had a death in the family um is there 00:37:05.600 --> 00:37:12.080 going to be I mean I don't want to drag the staff through that again but if anybody else had to miss 00:37:12.080 --> 00:37:19.360 it would there be a chance for another tour we're certainly happy to schedule something if um you 00:37:19.360 --> 00:37:24.400 know if there's a couple of you that would like to have a do-over on that not not if it's just me but 00:37:24.400 --> 00:37:29.920 I wasn't sure how many people were able to make it I didn't make it either Karen I my daughter's 00:37:29.920 --> 00:37:39.440 making me behave if she wants to see me I think we only had two oh three three okay all right 00:37:39.440 --> 00:37:47.440 is that family of trolls still live up there in the system that's why I didn't go I'm afraid of 00:37:47.440 --> 00:37:57.200 trolls and oh yes Charlie go ahead I will add there's one of the three that did make the tour 00:37:57.200 --> 00:38:04.400 thanks to staff for accommodating us and um but seems like a neat facility and I enjoyed the 00:38:04.400 --> 00:38:10.080 opportunity to see it so thank you yeah I'll definitely agree with that it was a very good 00:38:10.080 --> 00:38:17.920 tour very good explanation and very beneficial for me I could understand what they were talking 00:38:17.920 --> 00:38:26.720 about that was really great I also would like to piggyback on that on the streets that every time 00:38:26.720 --> 00:38:32.960 I try to get out of my neighborhood I remind myself how wonderful it's going to be because 00:38:32.960 --> 00:38:40.480 these guys are working six days a week to get these streets finished and they're working very 00:38:40.480 --> 00:38:50.160 hard so it's it's a it is a challenge now but it will be so much better and I'm excited about it 00:38:50.160 --> 00:38:58.640 okay and and I want to thank the staff I was one of the people who got the 00:38:59.680 --> 00:39:05.760 pass-due call for my automatic payment on my utility bill and I want to thank Krista and 00:39:05.760 --> 00:39:13.120 staff for getting a memo out to us so quickly addressing the issue and um I got it paid 00:39:13.120 --> 00:39:23.520 that's the important thing so all right anybody else okay closed meeting um deliberations 00:39:23.520 --> 00:39:28.400 regarding the certain public power utilities competitive matters under Texas government 00:39:28.400 --> 00:39:34.480 code section five five one point zero eight six consultation with attorneys under Texas government 00:39:34.480 --> 00:39:41.520 code five five one point zero seven one receive information from staff about and discuss and 00:39:41.520 --> 00:39:47.680 deliberate the city's current renewable energy resources portfolio to the opportunities to add 00:39:47.680 --> 00:39:53.200 additional renewable resources to the portfolio consultation with the city's attorneys regarding 00:39:53.200 --> 00:39:59.520 legal issues associated with the procurement of additional renewable energy resources including 00:39:59.520 --> 00:40:04.080 but not limited to agreements related to the above where discussions of these legal matters 00:40:04.080 --> 00:40:09.440 in an open meeting would conflict with the duty of the city's attorneys to the city of Denton and 00:40:09.440 --> 00:40:15.600 the Denton city council under Texas disciplinary rules of professional conduct of the state board 00:40:15.600 --> 00:40:24.960 of Texas so with that we're in closed session and susan if you could just give us