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Miami Special Utility Authority (MSUA)

📅 May 2, 2017 | Clip #115
⚠️ DISCREPANCIES

⚠️ Discrepancies & Missing Documents (2)

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[00:00] How are you?
[00:02] So Ben, they've done a sore.
[00:04] God's ill.
[00:05] Well, I know.
[00:06] This is a long line spot.
[00:07] I ain't seen that one.
[00:08] And if I'm a doctor, you wouldn't you.
[00:12] You're just a boy.
[00:13] You're just a boy.
[00:14] You're just a boy.
[00:15] You're just a boy.
[00:16] I've got a little bit right here.
[00:19] Okay.
[00:20] We're right now eating.
[00:21] Thanks for being here.
[00:22] We're going to go ahead and get started.
[00:24] We're ready.
[00:25] We're going to call out to order the regular meeting
[00:28] for the manuscript utility authority for today's date and time.
[00:31] I don't know if he was in the case of my pastor.
[00:33] First of all, I have to church with long car.
[00:35] I really think to be here.
[00:36] Thank you for having me.
[00:37] Let's pray ahead.
[00:38] Father, it is always such an honor to come and pray for our community
[00:42] and our nation and for our city leaders.
[00:46] Father, we just just stop and pause for just a moment tonight.
[00:51] And we just lift up our city to you.
[00:54] And just thank you for it.
[00:56] And what a great place it is to live.
[00:58] Father, we do pray for those who are affected by the flooding
[01:01] and just pray that you would just continue to protect them and be with them.
[01:05] And as they try to get life back to normal,
[01:08] you just meet all the needs that they have.
[01:12] I pray for our city leaders and may you continue to give them wisdom.
[01:15] And always appreciate their love for our community and their willingness to serve
[01:20] and may you just continue to guide them.
[01:23] Father, continue to bless us.
[01:25] Father, may we always continue to serve you with all of our hearts and Jesus name.
[01:29] Amen.
[01:30] Amen.
[01:35] Amen.
[01:38] Amen.
[01:39] Amen.
[01:43] Amen.
[01:44] Amen.
[01:46] Amen.
[01:47] Amen.
[01:49] Amen.
[01:51] Amen.
[01:52] address the authority on any of the agenda items, there have been no out of five as
[01:59] consent agenda staff is recommending item six and seven which are claims and an
[02:03] under for maple floor for the consent agenda, there are no questions with
[02:08] entertain most to approve, most of them are in the second. Second, for
[02:12] call please.
[02:13] Hello, I'm Justin. Hi. Hi. I'm Adrian's presentation and discussion on
[02:20] electric rates ordinance and negative PPA ordinance and it's got tolerated
[02:24] name next to it and I know Dan Jackson is on the line with us also
[02:29] Dan of course has conducted the state of former students who the last week and
[02:33] it's been kind enough to call in today, are you on side pan, Japan?
[02:38] I am in Psych Man.
[02:40] Psych Man.
[02:41] Are there Maria Island?
[02:43] It's Wednesday morning at 830 here, so I'm calling you all from the future.
[02:48] Did you just want to have me with the people of all my future so you're there?
[02:54] Well, yes, it's going down.
[02:56] Okay.
[02:57] That's a good thing.
[02:58] Good.
[03:00] There was at the bottom, so we're going to turn it over to him, find it on the floor.
[03:03] Before you turn it over to David, I just wanted to give a highlight one thing that we wanted
[03:07] to make sure of is that as we've identified that we had a very good study session, we appreciate
[03:13] the direction you've given us.
[03:15] And the item on the agenda today is a presentation of the proposed documents not asking you to
[03:21] actually approve them.
[03:22] As you know, just for example, today, they ought to call about the potential rate increases
[03:27] in the paper.
[03:28] And we're going to be sure that the public knows that we do want to hear from them as well
[03:32] about something as important as this.
[03:33] So, but during our discussion last Tuesday there was quite a bit of discussion about, for
[03:38] example, the PPA to make sure it's in a lot box, so we have an ordinance that will take
[03:43] care of that.
[03:44] Dan has some a few more probably refined numbers to go over.
[03:50] So this is just a really a continuation of that discussion before any final decisions are made.
[03:55] And I haven't had been in the field of reading the article yet, just to have a course.
[04:00] Well, so the tension gathered, I guess she'd say, I hope that there's somewhere in the body
[04:04] out of it, it talks about the importance of the investment that we're asking the taxpayers to
[04:08] make in our future.
[04:11] So without David, I'm going to turn over to you.
[04:13] I'm just going to purpose it just a little bit to understand normally we come before the council
[04:20] for rating increases based on wholesale power increases and things of this nature.
[04:26] But our capital improvements plans have always, we've always had capital improvements plans and
[04:33] looked at them, but this one's a little unique.
[04:35] This is the first time we've had an outside engineering firm that's going through and look at
[04:41] our capital improvements plans.
[04:43] And working with Tyler, Tyler, and the electric and the water departments that came up with
[04:49] some pretty good plans, the problem with it is is we put off maintenance way too long and you've
[04:54] heard the story several times.
[04:56] We've had cases where we had funds to do some of this with and we had to divert those funds elsewhere.
[05:04] So I like that Dean talked about the lock box, that's what we have to do here.
[05:11] We have got to lock in these funds to where they go to, where they are intended.
[05:19] Without any more into that, I recommend having Dan go through what he went over with all of us in
[05:26] you all last Tuesday night with the city.
[05:32] Actually go ahead and go through the presentation.
[05:36] Can you do that Dan?
[05:38] Yeah, I'd be happy to.
[05:40] And what I'd like to do is just sort of concentrate on a few of the charts.
[05:44] Most of the charts in the main presentation, and you all should have had in your campus
[05:49] packet, most of the charts of the things that you saw last week.
[05:53] They emphasized a couple of very important factors.
[05:56] They emphasized the fact that costs are going up.
[06:00] for your electorate's water and waste water utility.
[06:03] That's a fact of life, costs are going up for everybody.
[06:06] I know that when you, maybe it's always going to be a little unsettling
[06:11] to see a newspaper article that says,
[06:13] rate increases being considered because nobody wants to pay more.
[06:18] Nobody wants to pay more for anything at any time or any reason.
[06:21] So I think that when a decision-maker's like yourselves are fenced
[06:25] with a decision like this, you have to look beyond
[06:28] the mere fact of a rate increase to see where is the money going
[06:34] and how is it going to make your utility a better utility?
[06:38] The rate plan that we're presenting to you for a electorate's water and sewer race
[06:43] is going to enable the city of Miami to invest as much as $15 million
[06:49] in the future of your utility.
[06:51] That is a significant capital investment.
[06:54] It's going to be used for assets that are not only going to benefit
[06:59] yourself, but it's also going to benefit future generations of great payers.
[07:04] One of the responsibilities that any decision-maker has is that you want to
[07:09] hand off the future generations, a utility that's in a good shape or better shape
[07:14] than the one you inherited.
[07:15] Well, that requires investments, we'll quit investment, inquire contributions from
[07:20] the race papers.
[07:21] So yes, it's not easy to have great payers to pay more, but as David indicated,
[07:26] in his initial remarks, this is a unique request in the sense that it is being implemented
[07:32] to allow you to invest in the future of your utility.
[07:37] So with that being said, I just want to comment on a few of the charts because as a result of the
[07:43] feedback we've got from last week's presentation, some of you wanted to see a little bit more detail
[07:48] on some of the race proposals and so on.
[07:50] Let's look first at page two, that's chart fell last week, the shows you're a lecture claim
[07:55] are very much in life with what other utility, you know, the home or chart.
[08:01] We have a very comfortable way of hearing to believe that their rates are somehow out of proportion
[08:07] and are higher than their neighbor, that certainly is not true based on the empirical data
[08:13] that's presented in the chart.
[08:15] I want to skip ahead to page three, which shows your electric utility cost of service.
[08:23] You can see that person's power remains the lion's share of the current budget.
[08:29] You know, the PTA chart is the largest component of your budget so the decision you make with regards
[08:35] to your PTA chart is going to have an impact on the ultimate rate plan that your rate player
[08:41] is going to be a rate player to pay.
[08:43] If we go to page four, page four is a forecast of the electric utility cost of service over the next six
[08:54] fiscal years.
[08:56] As you can see, the net revenue requirement or the total amount of money.
[09:00] needed to run your utility, go from $16.8 million in the current year 2017 to $19.22.
[09:10] That obviously shouldn't be surprising, everything is going to cause more tomorrow than it does today.
[09:16] However, if you look at this chart carefully, you can see that the lion's share of the cost increases in the electric utility are due to new debt service.
[09:29] Right now, your electric utility has no long-term debt.
[09:33] And that's unique, and you should be committed for that.
[09:36] It's not very often that you see an electric utility that has no outstanding debt service at all.
[09:41] Right now that it takes with you.
[09:43] However, you also have the need to spend $23 to $24 million in future capital improvements.
[09:52] So, as a result of that, you're going to have to get you debt over the next several years in order to fund those capital improvements.
[10:00] When you get you debt, that means that you're going to have to pay back debt service on an annual basis.
[10:05] The debt service is going to increase from zero to a to as much as $1.6 million a year by the year 2022.
[10:14] Therefore, you have to have a rate plan in place that enables you to repay debt service.
[10:20] So, the lion's fill your total cost of service is expected to increase by $2.2 million on the next five years.
[10:29] $1.5 million at that $2.2 million did nothing more than debt service itself.
[10:34] So, that just reiterates the fact that the additional cost of service is really an investment in a future of your system.
[10:44] $1.5.5 and $7 are acres that you saw last week, which just outlined these rate plan under scenario 1.
[10:55] So, scenario 1, assumes that you do a combination of two things.
[11:01] You gradually have got your paid charges for your residential, commercial, and industrial customers to replace the increased cost and the debt service needs.
[11:10] And it also assumes that you pass through the PPA charge that is imposed that is the offset of the cost that the RDA in place on you.
[11:25] Now, the PPA charge as the RDA has indicated is going to bounce around a lot over the next several years.
[11:33] In the last several years, RDA's RDA charges have been mostly positive.
[11:38] They've been one to two to three cents.
[11:41] However, due to the fact that we as a gas, the market of the gas has been so volatile, RDA actually expects the PPA charge to be negative in the next several years.
[11:54] So, if the PPA charge is going to be negative, that is actually going to be a positive.
[12:00] this hack on your monthly rate-layer bill.
[12:02] And it's going to mean that your rate-layer bill
[12:04] will be nominally low reduced by that amount.
[12:08] The total bill will go up over the next five years.
[12:12] But it will go up by a lesser degree due to the fact
[12:15] that the TPA charge is 4K at 5GRDA to be negative.
[12:20] Now, I want to emphasize one thing very, very important
[12:23] about these TPA charges.
[12:25] They're very volatile, and they're
[12:27] not used to just potentially significant revisions.
[12:31] The RDA has substantially adjusted its forecast.
[12:36] So TPA charges over the last couple of years
[12:39] will make all its TPA charges.
[12:41] And so it is entirely possible that next year in this time,
[12:46] they can come back and say, never mind.
[12:48] It's not going to be negative next year.
[12:49] It's going to be positive after all.
[12:50] We just don't know because nobody can really predict
[12:54] a natural gas market in the coming years.
[12:57] Nonetheless, scenario one or the two that you do
[13:01] gradual rate adjustment on your paid charge
[13:04] and you pass the rule that savings on your PPA charge
[13:08] to your ultimate rate-ayer.
[13:11] What an act of that have on your customer's
[13:14] left-show on on page 7.
[13:17] Page 7 shows the average monthly bill
[13:21] for a residential user at $500 a month at $897,000 a month
[13:29] and at $1,500 a month.
[13:32] Your average residential rate-ayer uses about $897,000 or $900,000 a month.
[13:39] So the average rate-ayer under this plan
[13:42] would see their monthly bill go up by about $5
[13:46] beginning in June of 2017.
[13:49] A rate-ayer uses $897,000 on hours right now
[13:53] pays about $89 and $4,000 a month.
[13:57] Their bill would go to $94 and $48 a month.
[14:00] The entire increase would be due to the fact
[14:03] that the PPA charge did expect it to be to go from negative point
[14:10] for three cents to positive point one seven cents.
[14:13] So the entire increase of $5,44 would be due to the increase
[14:18] of the PPA charge.
[14:20] In subsequent years, an April 2018, that would reflect
[14:26] the first actual phase rate increase.
[14:29] So the phase rate would not go up this year.
[14:31] The only increase would be due to the increase
[14:34] in the PPA charge this year.
[14:37] In April 2018, the phase charge would go up,
[14:42] but the PPA charge would go down a little bit.
[14:44] And the average increase would be about $2,4,000
[14:47] for some of the good years is $897,000 a month.
[14:52] And then if you can see, the increase would be $6 a month
[14:55] in 2019, $2,69 a month in 2020.
[15:00] and $2.50 in 2021.
[15:04] They did, show the impact on commercial customers.
[15:09] This was one of the charts that the council requested
[15:12] that we provide as part of this presentation.
[15:15] And you can see the increases in B.C.L.A.W.
[15:18] Your average customer, the commercial customer,
[15:23] you have this about 17,000 kilowatt hours a month.
[15:27] It's about 17,000 kilowatt hours a month.
[15:31] It's about 17.5, and $17,500 kilowatt hours a month.
[15:35] That commercial customers currently pay $1,500 in $7,000 a month for that amount.
[15:41] That amount would go about $100 a month under this plan.
[15:45] And effectively, in June of 2017, once again,
[15:48] you'll completely do the PTA increase.
[15:51] And as you can see, in future years,
[15:54] that amount would go down slightly in 2018.
[15:58] It would go up by $70 a month, it's $0.20.
[16:00] It would go up by $0.50 a month and $0.20.
[16:04] And it would go up again by $0.32 a month in 2021.
[16:08] So that would be the impact on a commercial customer.
[16:14] So before I go to the area,
[16:17] do you have any questions about that?
[16:21] Brian, is that kind of answer your question?
[16:24] The additional information we're looking for.
[16:26] Great.
[16:27] Go ahead, Dan.
[16:28] OK.
[16:29] Down to the area too.
[16:30] On the electric rate.
[16:33] The area too, a tune that when the PTA charge goes down,
[16:39] instead of rebating that amount to rate payers,
[16:43] you instead use the savings to invest in the future of your system.
[16:47] You have to look at capital improvement needs over the next five years.
[16:52] 23 million dollars in capital improvement needs in the electric system alone.
[16:58] So the philosophy underpaying to it instead of rebating that savings to the customers,
[17:06] you bank it, and you use it to offset the need to issue debt.
[17:11] If you do this, you would be able to recover as much as a million dollars of additional cash
[17:19] that you could use to invest in capital improvement needs,
[17:22] so you would have to borrow a million dollars left.
[17:25] The benefit is lower barring cost, lower interest payments, lower cost to service.
[17:30] But downside is, your rate payers would not be able to recover that nominal decline in your PTA charge.
[17:37] So if you go to pay 10, 11, and pay 10 and 11,
[17:42] you can see what the impact would be on your own on your way
[17:48] to the financial and commercial customers.
[17:50] So it's one other aspect of scenario too, that we might not have sufficiently discussed
[17:55] at the meeting last week, and that is the fact that right now.
[18:00] You have an extraordinarily low customer monthly charge for your residential customers.
[18:07] It's only $8.22 a month.
[18:11] How?
[18:12] Not only customer charges, they're typically used to offset the fixed charges that electric systems have.
[18:20] You know, all utilities have very, very high fixed charges, and so they don't, they don't,
[18:26] they don't, these charges don't vary based on the amount of usage that you sell.
[18:30] So, one thing that we looked at was the idea of increasing the customer charge to increase the amount of guaranteed revenue you get each year.
[18:41] What that does is that it enables you to have a guaranteed revenue source and make you less dependent on usage,
[18:49] which can be influenced by factors beyond your control, like weather, risk action, that kind of thing.
[18:57] So, the only other chain in scenario two is a total, in addition to not refunding the PPA charge to the customers,
[19:05] is that we increase the residential customer charge from $8.22 a month to $12.50 a month.
[19:13] We would increase, we would not increase the customer from monthly charge at all.
[19:18] It's paid to $16.48 a month.
[19:22] So, the residents of WrayPairs would see an adjustment in the customer charge, and they would see no rough pass the route on saving of the PPA charge.
[19:35] That is shown on pages 10 and 11.
[19:39] Hey, Dan.
[19:40] Do you see the impact?
[19:41] Well, actual one on page 12.
[19:43] Let's look at our average residential customer again.
[19:47] He is at $8.197,000 a month.
[19:50] Right now, he's paying $89 a month for that service.
[19:54] Under scenario one, that would go up to $94.48, but under scenario two, it would go up to $98.75,
[20:02] although they would go up an extra $4.28 a month.
[20:06] The total bill would go up by about $8 a month, about $4 a month, but that would be due to the increase in the customer charge,
[20:13] and the other $4 would be due to the increase in the PPA charge that is expected in June of 2017.
[20:21] In 2018, page you can see the first page, page you can see the first page charge increase would go up to effect.
[20:33] And, and you can see under scenario one, that would result in a $2 a month increase from $94.48 to $96.51.
[20:44] But under scenario two, the bill would go from $98 a month, and $99.72 a month.
[20:52] It would be an increase of a month, and it would be $3.10 a month.
[20:55] That would be the difference between scenario one and scenario two.
[20:59] And if you...
[24:00] a way to summarize the difference between the two race plan
[24:03] is that under scenario one, where you rebate
[24:08] the any theoretical or plus savings in a PPA charge,
[24:13] monthly bills would go from $89 a month and $0.17 to $107 a month by 2021.
[24:21] Under scenario two, where you keep the PPA charge,
[24:26] and you use it to invest in the future of your system,
[24:29] from only $0.89 a month, get present $210 a month by 2021.
[24:36] So it's only about a $2.5 a month differential over the five-year period.
[24:41] Under either scenario, rate has to go up.
[24:45] There is no way you can invest $25 million in the future of your city
[24:51] without adjusting your electric rate.
[24:53] So the question becomes how do you adjust this?
[24:56] And under the scenario two, if you bump the residential
[25:01] customer charge up a little higher in the early year,
[25:04] the impact is a little lesser in the later years,
[25:07] because the usage charge isn't going up as much.
[25:09] So they tend to offset each other a little bit,
[25:12] but the bottom line is that under scenario two,
[25:15] the bill will be nominally higher in 2021 than they are under scenario one.
[25:21] So that's the solution point that you have under the
[25:25] two competing proposals here.
[25:28] Okay, any thoughts, comments or questions?
[25:35] For damn, the David or Tyler?
[25:37] If we don't rebate the PPA back to the customer,
[25:41] how much money is that going to, I mean, an average customer or a math?
[25:45] What is that amount?
[25:46] I mean, at 897, kilowatts a month,
[25:51] if we're rebating that back to the customer, what kind of savings is that to the customer?
[25:56] If the PPA charge becomes negative, like the RDA presently claims it will,
[26:01] it would be about $2 to $3 a month for average residential customer.
[26:06] And at the very general rule of thumb, but I think it's a good rule of thumb
[26:10] over the next several years.
[26:14] Because the PPA charge is 4th half by the RDA to be negative,
[26:20] 0.1 to 0.2 cents per kilowatt hour.
[26:23] That's very much, but it has something.
[26:26] And though at the back, that translates to about $2 to a month for residential customer.
[26:33] But that would translate to a million dollars to the city over the course of five years.
[26:37] That's correct.
[26:40] That's done, current.
[26:41] Projection.
[26:42] Which can also mean that we would have to borrow a million dollars less,
[26:46] and not have to have the finance charges on that extra million dollars as well.
[26:50] So there's that savings to factor in.
[26:57] Any other questions for Dan on the old.
[45:00] Okay.
[45:01] Thanks, Chair Mayor.
[45:02] If there's any silver lining to this at all, our rates has exist today.
[45:09] Our schedule to go up until 2019, or I think it's 5% on the water and 3% on the sewer.
[45:18] That's already in the rate base right now.
[45:20] So that'll make this a little bit less of an impact based on what they're going to be up
[45:26] until then.
[45:29] So the rate schedule that we put into effect a couple of years ago that did not take
[45:34] into account these major capital that's correct, just kind of the everyday stuff and then
[45:40] a cost of increase in service, there was a plan in place for that, and this plan would
[45:47] replace that one.
[45:48] Yes, sir.
[45:49] Okay.
[45:50] I got a question.
[45:51] I can speak for Dean.
[45:52] Do we have the staffing to do all these capital improvements in house, or will we have to,
[45:58] oh, now many of these would be, we'd go through an engineering process.
[46:02] This is why I'm talking about the timing.
[46:04] We would be going through an engineering process, and then we would be letting those out for
[46:08] bed for the most part.
[46:09] A lot of the things that we're talking about, for example, one of the major projects that's
[46:14] on the top of our list is West Central.
[46:17] Everybody drives the street and knows what terrible condition it is, but we haven't done anything
[46:21] because the utilities underneath are just as bad.
[46:23] We'll have to tear up West Central and replace the lines left for a place of sewer lines.
[46:28] A lot of that will be something called in-sit uniform, or you actually slip-line the sewers that
[46:33] are actually in place, and repair them in that manner, the things that we really can't do.
[46:39] One thing that Sean has really emphasized to us as well is that we really need to emphasize
[46:45] and go out to bed on the big rebuild projects, that's on both streets, electric, water, sewer,
[46:51] and make sure that our staff then, they're spending their time on maintenance because we've
[46:56] gotten away from that.
[46:57] Very often we'll have our maintenance crews actually doing construction, and then we get behind
[47:02] in the routine maintenance that we have to do.
[47:04] That's part of this plan is to make sure that the staff we've got, that they're maintaining.
[47:11] Instead of, I'll use a leash as an example.
[47:13] Instead of her crews out there rebuilding the street, they're filling the potholes and we contract
[47:18] out for somebody to rebuild the street.
[47:20] That's what we need to get to.
[47:25] Any questions?
[47:27] I mean, we haven't really given staff direction on this particular issue.
[47:33] You know, my concern with water, I think I brought it up at the last meeting was in regards to
[47:39] anything that we're going to do infrastructure-wise underneath the rooms.
[47:43] That's got to really go hand in hand with our street project, and in five years.
[47:49] So who leads the bus?
[47:51] Does your straights lead the bus for your waterbinds?
[47:56] Or do you now send away to minute?
[47:58] These waterbinds are terrible.
[54:00] everybody, what the general concept with what was, is that they cannot come in to the city
[54:05] limits using their revenues, using their expenditures, their rural electric company basically.
[54:13] And they're prohibited from spending their money in an urban area and my Emma is an urban
[54:18] area.
[54:19] Now, for example, Grove is not classified, so they can go into Grove and serve Grove, but they
[54:24] can't come in and serve my Emma.
[54:26] We'll get reclassified.
[54:27] Well, that would be nice.
[54:29] It would be very nice.
[54:30] We'll be simple.
[54:31] But the plan was that we would invest in the system.
[54:37] I want to highlight the investment part that we would be partially owning it of about
[54:42] 1 million, 2.
[54:43] It was about a million dollars in the new lines that they or the new fiber that they
[54:48] would be putting in.
[54:49] And I believe it was about 200,000 at one of their headends that would have to be able
[54:53] to come in.
[54:55] When they used that money, they would basically identify an area of the city and they would
[54:59] build out that area.
[55:01] And then if they had the take rate that our studies showed that they would get, then they would
[55:06] use the revenue from that to build out the rest of the system.
[55:11] And then everybody in town would be able to decide if they wanted to have vote for either telephone
[55:16] or internet or cable or all of it or none of it.
[55:21] So that basically is a good one.
[55:24] Now, they still emphasize they have to take this to their board.
[55:27] And their board has to approve it just like any agreement we have, you have to approve.
[55:32] But the staff is very, very excited about this.
[55:35] So with that, the question comes up, where's our million two going to come from?
[55:41] And with David's help, and Todd is helping, Jill's help, what we'd like to do is look at this
[55:46] bond issue that we're talking about.
[55:48] We have the projects in there and we're all talking about borrowing up any more than we're
[55:53] already talking about, possibly making some adjustments.
[55:57] Using those proceeds to be able to bring both in to town.
[56:01] Now, of course, we'd have to lay out the plan to you, you'd have to approve it.
[56:05] So there's a lot of work we have to do to make this happen as well.
[56:09] But what we also like to do is go a little bit further because when we first started this,
[56:14] you remember it was almost, it was probably over two years ago.
[56:17] We set aside some monies, but then we said the reason for doing this is that the fiber system
[56:23] that boat would be installing would be the backbone of a smart metering system for our utilities.
[56:32] And smart metering for us would really be helpful in how we do customer service.
[56:39] For example, we would be able to read meters remotely.
[56:42] We wouldn't have to have metereaters.
[56:44] We probably instead of having the metereaters that we have, we might only have two meter technicians.
[56:50] Now, I want to highlight that this is going to take a period of time.
[56:53] So probably it would be a tradition when we're not talking about laying people off.
[56:57] Also, I think time...
[57:00] you're telling me when you talk to a few other utilities that have already done this.
[57:03] For example, a lot of the rental properties in their communities are set up with systems
[57:08] in which the tenants actually pay for electricity and advance.
[57:13] Instead of a tenant having to come, establish something, change it around it.
[57:18] If somebody moves that and somebody moves in which takes a long time in our customer service,
[57:22] they basically be able to buy their power almost from the meter and wouldn't have to come
[57:27] down town, they would have to set up a system and whenever the meter gets lower,
[57:31] they would just pay more.
[57:33] It would just streamline things and in all probability, we would need as many customer service
[57:38] representatives.
[57:39] Again, I want to emphasize this is a long-term process of none of our CSRs have to worry
[57:44] about being laid off immediately.
[57:47] But this would streamline our system and in all probability help us with our cash flow,
[57:52] because all in mind everybody, I think we're about a million seven right now in collectables
[57:57] and about a million of that, or a seven hundred thousand is probably the funds that we're
[58:02] not even going to ever be able to collect.
[58:04] This would probably be a much better way to cash flow in a much more modern way.
[58:08] It's that type of an investment.
[58:11] So as we move ahead on this program, what we'd like to look at and just wanted to give you a heads
[58:17] up, is that we'd like to look to see if we can move both into this type of bond issue to make
[58:24] it happen as well.
[58:25] That's some of our planning.
[58:26] We've got a lot of work to do on that, but it also seems like if we're going to be upgrading
[58:31] our systems both physically this way from a customer service standpoint, that would also be
[58:37] a very good investment for the future.
[58:39] So just wanted to highlight that as we're talking about this.
[58:43] A lot of decisions to be made in the future.
[58:46] More conversation is part of our budget meeting.
[58:49] Absolutely.
[58:50] Yes, sir.
[58:51] I'm not asking you to approve it right now, but I shape or form.
[58:54] But yeah, I just want to let you know what we're thinking about.
[59:02] Thanks, Dan.
[59:03] Thank you, Dan.
[59:04] That takes a little bit of items eight and nine, and there's no action to be taken other
[59:11] than staff as a sense of, yes.
[59:14] My development is worth expecting to see for a vote.
[59:18] But I believe we're planning on bringing these to our next meeting.
[59:22] Okay.
[59:23] Item 10 is need business, and I know you just touched on that a little bit.
[59:27] Be with the vote stuff and the other new business.
[59:30] 11 staff reports are in your packet and you're available for questions.
[59:36] 12 is trust in community announcements.
[59:40] Next.
[59:41] Next meeting.
[59:42] Do you want to say anything about water, rise later?
[59:46] I have planned on doing it into the general.
[59:48] Okay.
[59:49] That's fine.
[59:50] General.
[59:52] So blue.
[59:53] And second.
[59:54] Go call police.
[59:55] Bye.

📄 Full Agenda

NOTICE OF REGULAR MEETING AND AGENDA
OF THE MIAMI SPECIAL UTILITY AUTHORITY (MSUA)
Tuesday, May 2, 2017
5:30


p.m.
MIAMI CIVIC CENTER
129 5th Avenue Northwest, Miami, Oklahoma
Filed in the Office of the City Clerk and displayed in the main lobby of the Miami Civic Center and by
posting on www.miamiokla.net.
THE MSUA MAY DISCUSS, CONSIDER, AND VOTE ON ANY ITEM LISTED IN THIS AGENDA:
1.
Call to Order                                                                  Chairman Schultz
2.
Invocation by Pastor of First Baptist Church                                                  Rick Longcrier
3.
Pledge of Allegiance                                                      Trustee Johnson
4.
Public Input and Unscheduled Personal Appearances
Each person will be limited to three minutes. The purpose of this agenda item is to provide an opportunity for citizens’ comments and public announcements. In keeping with the principals of the Oklahoma Open Meeting Act, Council [or commission, authority or board] members and city staff will not engage in discussion or take any action under this agenda item. If you seek discussion or further inquiry, please contact your Council Member, the Mayor or the office of the city manager. Responses to citizen comments, if any, will occur under an applicable Agenda item at this or a future public meeting, or a response may be given by a phone call, personal meeting or a posting on the city website:
www.miamiokla.net
5.
CONSENT AGENDA                                          Trustees
By unanimous consent the public body may designate noncontroversial items to be considered in one motion and one vote.  The public body may add items from the regular agenda and approve. Posted agenda items not added to the consent docket will be considered separately in their regular order.  Staff recommends that Item 6 through Item 7 be placed on the consent agenda.
6.
Claims:  $204,650.18 as Described on the Attached Claims List                                        Trustees
Claims List
7.
Minutes:  April 04, 2017                                                            Trustees
Minutes: April 04, 2017
8.
Presentation and Discussion on Electric Rates Ordinance and Negative PPA Ordinance                Tyler Cline/D. Roundtree
BA
Electric Rate Ordinance
PPA Ordinance
Electric Capital Plan
Revised Rate Study
9.
Presentation and Discussion on Water and Sewer Rates Ordinance and Capital Improvement Plan                                  Tyler Cline/D. Roundtree
BA
Water Ordinance
Sewer Ordinance
Water & Waste Water Capital Plan
Revised Rate Study
10.
Other New Business, if any, Which has Arisen Since the Posting of the Agenda and Could not Have Been Anticipated Prior to the Time of Posting (25 O.S. § 311(9))                    Trustees
11.
Staff Reports (Written report included in packet, if available staff is present for questions)                                Trustees
Waste & Waste Water
12.
Trustee Community Announcements                                          Trustees
13.
Adjournment                                        Trustees
The MSUA Board of Trustees for the City of Miami is committed to making this meeting accessible to all citizens. If special assistance or accommodations are required, please submit your request to the City Manager's office. We also ask that those in attendance place all electronic devices on silent. Thank you.