← Back to All Meetings

Miami Special Utility Authority (MSUA)

📅 May 16, 2017 | Clip #117
⚠️ DISCREPANCIES

⚠️ Discrepancies & Missing Documents (2)

⚠️ No Official Minutes Published
The city has not published official minutes for this meeting. Under Oklahoma Open Meeting Act (25 O.S. § 308), minutes of all public meetings must be kept and made available.
🟡 City Has Not Published Minutes
Our transcript is complete but the city has not published official minutes on AgendaCenter. This may indicate a delay or failure to comply with open records requirements.

📹 Meeting Video

Open official source

📝 AI Transcript

[00:00] meeting out of the mime discussion utility authority, out of two those invocations by
[00:05] pastoral view of life has re-insurged and mine down the street neighbor,
[00:09] Nici Hottensburg, thanks for being here, Nici Hottensburg.
[00:11] Now we manage all this, appreciate it, that's great, all right, and we're probably working
[00:20] as just to have awesome and mighty and powerful you are, you're God that's all knowing and
[00:25] all powerful and God who's everywhere at all times and yet also acknowledge that you're
[00:32] a God that's so personal and desires to accomplish his plan in each of our lives and you
[00:40] will not have us and my confess and maybe we confess today that we haven't always consulted
[00:47] with you and sought out your plan for our lives and for our city and for our community and
[00:53] for our world and today as we pause here, as we begin this meeting that we will ask that
[00:58] you will be done today, Jesus, that you will provide guidance and direction to these council members
[01:08] and that you will be done today, Jesus.
[01:12] Thank you that you hope it's best, and we want you best for us, for our families, for our community,
[01:17] and for our city, Jesus, and trust that that'll happen as we see you in this meeting and in the future,
[01:23] for it's in your name, we pray these things. Amen.
[01:47] One of the audience, it wishes to address the 40 on any of the agenda items, I'm going to
[01:56] have a five as a consent agenda staff as we're bringing items six and seven claims and minutes be placed
[02:01] on the consent agenda for a little questions on either of these items, entertain the most to approve.
[02:07] And a second, say.
[02:09] Jonathan.
[02:11] Hi.
[02:12] Hi.
[02:13] I'm Jonathan.
[02:14] All right.
[02:15] Four.
[02:16] Five.
[02:17] All right.
[02:18] I have an idea of the press by staff.
[02:20] I've just all heard submitted in response to the solicitation C-14103 for the NINEO Santerity
[02:27] We have a card check.
[02:31] Is there any comment on that?
[02:34] Or if you have any questions, Connor, I think, explained what happened.
[02:38] Yes.
[02:39] They tried to, one, they're trying to replace materials, and you'll need does not allow replacement.
[02:45] So we need that.
[02:46] So we're going to reject all the bid and rebid it allowing.
[02:48] Okay.
[02:49] Okay.
[02:52] I don't know.
[02:53] Is your instruction sick?
[02:54] Yes.
[02:55] Do we need to do as you we need an action on it?
[02:57] Yes.
[02:58] Okay.
[02:59] We need to do that on it.
[03:00] to reject the goods submitted on item eight. I'm backing up the item eight.
[03:05] How make it emotional? And a second.
[03:07] Oh, sorry.
[03:08] We'll call for the answer.
[03:10] Hi.
[03:11] Johnson.
[03:12] I just did.
[03:13] All right.
[03:15] Item nine is to amend Section 24-64.
[03:20] The billing tables.
[03:21] I'm not going to go through and list all the sections,
[03:23] but they're certainly listed under the agenda item.
[03:25] And Tyler and David will have your names bound.
[03:29] Well, I think D-Mot wants to take a couple of words here.
[03:34] Well, I think just basically, we, after our last study session,
[03:38] we were talking about our utility rights.
[03:41] We got together a staff and recognize that there are some issues
[03:45] related to the timing on this.
[03:48] The scope of the work that we're also looking at and some other changes
[03:52] that are about to happen.
[03:54] So we're trying to pull it together in about three different ways.
[03:58] We want to talk about the electric rate increase that's being proposed
[04:02] for the electric department and some of the capital improvements.
[04:07] The power cost adjustment that comes under item number 10.
[04:12] A strategy to talk about water and sewer rates as part of this discussion as well.
[04:17] Now, in our mixed in this discussion, I think Joe would like to talk about
[04:22] and item related to the ability to transfer funds from M.S.
[04:26] She lay at our last meeting, you asked us to take a look at some ability
[04:30] to be able to get some guidelines on future years.
[04:33] We've been working on that.
[04:35] And also today, we also had a meeting with Greg Nieto about bonding.
[04:39] We'd like to report on that as well.
[04:41] So there are some action items that will be taking place under the city council
[04:46] agenda that these items that are coming up right now are geared more toward being
[04:51] discussion items.
[04:52] And then there would be action items that we're requesting on the two
[04:56] electrical items, the rates and the power cost adjustment.
[04:59] The rest are basically discussion.
[05:01] As far as this particular agenda item, this is the electric rate
[05:07] and schedules themselves.
[05:09] This is all of our schedules and the adjustment to those.
[05:13] And what happens right now, which, if approved in the council meeting,
[05:18] what happens is that the customer charge,
[05:23] a new customer charge will go into effect,
[05:27] that the 30 days after it, if it's approved.
[05:31] And that customer charge for residential customers would increase
[05:35] the charge by $4.80.
[05:38] Okay.
[05:39] And David, when you're saying, Joe, we're just talking about that base charge.
[05:42] That's really with the per hour usage of your charge.
[05:45] Yes.
[05:46] It's the base charge.
[05:47] Yes, okay.
[05:48] And for 2017, there will be no electric income,
[05:53] kill one hour or demand charge on any of our rates.
[05:56] As you say, just that customer charge.
[06:00] Then that's different than we talked about and what was proposed to us, correct?
[06:08] From the very first time, yes.
[06:11] But it was the ordinance that you all saw two weeks ago that we viewed and went over.
[06:20] That hasn't changed.
[06:21] Also, when the first kilowatt hour adjustments come into effect, won't be January of 2018.
[06:30] There will be moved out into April of 2018.
[06:34] And the reason for that is is because we have a less, the customer's use less kilowatt hour usage.
[06:40] And it's not such a drastic impact to them.
[06:44] And effectively, that's it.
[06:46] Also, in this ordinance is a repeal of ordinance 2430.4, which allowed the utility board to make
[06:57] a rate adjustments.
[07:00] If, though, fact, we have no utility board anymore.
[07:03] So we struck that and we struck all the language, the attorneys and everything of struck all
[07:07] the language that associates with that in all the ordinances.
[07:12] So it's also a cleanup of all these ordinances.
[07:16] So, I'm not that aggressive with it, but I think because you brought up the utility board we can.
[07:22] They're all we look at the governor sign in the new charter.
[07:26] And it has been delivered, but it's still a question that we're going to say that we're saying
[07:31] they're not even going to be looking at anything else, rather than legislation and everything
[07:37] relating to what's going on here.
[07:39] So they said that the earlier it will be introduced and may well get into July.
[07:51] So what is the effective date of this proposed amendment?
[07:59] It would be June.
[08:00] It would be part of the thing that I wanted to point out, but I'm blank in here, but when it's
[08:07] a matter of, we definitely need to put those data in there.
[08:11] Yes.
[08:12] The dates are in the schedule, they're in the schedule, and the effective data this is scheduled
[08:20] for the last of June of 2017 is what it would commence.
[08:26] Okay.
[08:27] So, Ben, I guess what's going through my head is we're taking actions with respect to the utility
[08:35] board, which probably we can take regardless, but because that entity seems to me officially
[08:41] ceases to exist, once the governor signs the charter, is there any reason we should, if none
[08:50] of these other changes are urgent, certainly sounds like the rate increases are put off
[08:56] to a little spawning, and the customer charge.
[09:00] was going to be effective when David June 2017 30 days after it's going to effect but that's
[09:07] all of the course of the rate schedule, okay. Do you have any concerns, man?
[09:13] Well, I mean even though with the charter change when it's approved that will remove the
[09:23] board from the charter but it doesn't remove it from our board.
[09:27] Okay. So those are independent actions.
[09:32] Okay. Okay. David, go ahead.
[09:36] That's not as far as my question. Essentially unless there's any other questions that's all that there is to it.
[09:43] And this goes out to the year of 2021.
[09:47] So the rate increases that were recommended to us a couple of weeks ago are still going to go into effect.
[09:57] The monthly charge will go into effect in 30 days. The actual increases in the kilowatt hour usage will not go into effect until a little
[10:07] spring April 2018 instead of January. Yes, correct.
[10:15] Everything else is as it was two weeks ago. Yes, sir.
[10:19] The questions for David and the confusion on that, I don't know if I'll confuse but I think I doubt it.
[10:27] There was already an increase in employees arriving for June already not in electric.
[10:32] No, not electric. No.
[10:34] And we can get into it when we talk about water.
[10:38] The only rate increases that we have in place right now for water and sewer and those take place January 1st.
[10:44] If that we just had a rate increase last January and we would have one in 18 and one in 19 as per current code.
[10:52] Who will cut percent was that day?
[10:54] It's a 5% for water both years and 3% for sewer both years.
[11:00] So in January 1st 2018 there will be a 5% increase in water, 3% increase in sewer.
[11:06] In January 1st 2019 a 5% increase for water and a 3% for sewer.
[11:13] And day is that part of the 5 year plan?
[11:16] No, sir, that is what's in that.
[11:18] Yes, that is the 5 year plan that was approved several years ago.
[11:21] Correct.
[11:22] But again, depending on what we do on the adjustments for the bond issue for water and sewer,
[11:28] those would go up on an incremental basis.
[11:32] So back to agenda item nine with the understanding that there's been a couple of changes and what we talked about two weeks ago.
[11:43] I guess the primary change is just deferring the rate increase on the usage until April.
[11:50] April, yes, sir.
[11:51] Okay.
[11:52] Any other questions?
[11:53] You have the most to approve?
[11:55] Looks approved.
[11:56] And a second?
[11:57] A second, Mayor.
[11:58] Will it call please?
[11:59] With them.
[12:00] Johnson, Lewis, before a start.
[12:03] I can talk.
[12:04] All right.
[12:05] Thank you.
[12:06] I am 18.
[12:07] There's a name section 2460.
[12:09] PPR adjustment schedule.
[12:11] Then chapter 24 of utilities, establishing guidelines for recovering power cost adjustment.
[12:17] Surcharge is dated.
[12:19] This is essentially right now.
[12:22] We are charged from grammar of a dam authority, which is our wholesale power supplier.
[12:28] Any time their fuel cost gets about a certain level, that surcharge is we would call it.
[12:37] It's passed on to us and all the other customers of GRDA.
[12:40] The city then takes that surcharge or that charge, which is their cost.
[12:46] Their term for that is a fuel cost adjustment, a power cost adjustment.
[12:52] Our term for that is purchase power adjustment.
[12:56] We take theirs and pass it straight through onto our customers.
[13:02] If it goes positive, it's a positive charge.
[13:05] If it goes negative, we give it back as a negative charge.
[13:10] What we're proposing to do in hopes to acquire some more funds for help paying for some of the bonding that's going to be necessary in our capital improvements.
[13:22] As long as it's positive, it will continue to be a positive number to our customers.
[13:29] If it becomes negative, it will stop at zero.
[13:32] They will not get a negative number.
[13:35] It will just be a zero charge for purchase power.
[13:38] We will retain that and lock box that I think is the term for capital improvements for the electric system.
[13:47] Essentially that's it.
[13:50] The other side of this is for the year of 2017, Dan Jackson, Arkansas, and looking at the information we get from GRDA every month.
[14:00] It appears that that is not going to go negative until possibly January of 2018.
[14:09] So it's not going to have an effect on us right now.
[14:13] Right now it's a positive.
[14:15] It's been positive since I think January of 2017.
[14:19] So it's projected not to be negative until 2018, but this amendment will take effect in 30 days.
[14:28] Yes, sir.
[14:29] Yes, sir.
[14:30] Any other questions for David or time on this particular agenda item?
[14:35] It's just basically as discussed and we asked after bringing this before us for a vote.
[14:41] So do we have a motion to approve?
[14:44] I have a question.
[14:45] Yes, sir.
[14:46] An average customer of my M.M.
[14:48] How much does that do they get back or get cut off of their electricity bill by?
[14:53] Well actually it goes more positive than it ever goes negative.
[14:58] It's it's about.
[15:00] I think it's right now, it's at 0.007 since per kilowatt hour.
[15:07] So that times a thousand, our 750, I always use a thousand and make it simple.
[15:13] That's roughly it.
[15:17] But nonetheless, on average, over a period of time, the customer's utility bill will be slightly
[15:23] higher and...
[15:24] Yes or?
[15:25] Yes or?
[15:26] Yes.
[15:27] That's a good solution for capital improvements.
[15:29] Right.
[15:30] By doing this, it allowed us to go without increasing our rates as much because we believe
[15:37] that when the time comes, we have to start paying the debt service on a bond to take care
[15:41] of some of the capital improvements that we're going to have to do.
[15:44] This will help offset some of that rate increase.
[15:47] I believe Dan even projected somewhere in the neighborhood of a million dollars less that we would
[15:51] have to borrow.
[15:52] So that means a million dollars less that we wouldn't have to be paying any kind of interest
[15:56] on that we would be able to lockbox it and use it as capital.
[16:00] And it's the same kind of ridiculous.
[16:01] So given this back as a negative number, then turn around raising rates to get the money back.
[16:06] And so that's essentially how it all began.
[16:10] Okay.
[16:11] Any other questions?
[16:12] We have a motion.
[16:14] A motion.
[16:15] To the approved.
[16:16] To the approved.
[16:17] To the approved.
[16:18] A second.
[16:19] No second.
[16:20] Roll call place.
[16:21] For a certain question.
[16:22] All right.
[16:23] Who is I?
[16:24] Shots.
[16:25] I.
[16:27] I'm a woman.
[16:28] Discussion on water and sewer rate, permits and capital improvement plan.
[16:34] And this has got Tyler and David's name next to it.
[16:37] Dean, I think you've already kind of introduced this topic to Dean.
[16:40] I'm sorry.
[16:41] I definitely want to introduce that in our discussion.
[16:43] I think that made it very clear that we have kind of a very clear and present
[16:49] needs in our electric department.
[16:51] We have listed a lot of capital projects that we would be working on with these adjusted rates.
[16:57] We were talking about.
[16:59] But I think that we were still a little fuzzier on just exactly what projects we would be doing
[17:04] in the water department.
[17:05] That was, I believe, the first concern that you have.
[17:09] You're not saying that we don't have a great need.
[17:11] You're saying we don't have the priorities.
[17:12] It's exactly as we're electric.
[17:15] We can say we're going to start working on the nickel substation.
[17:17] We're going to work on 4%.
[17:19] We can go.
[17:20] We can knock that out.
[17:22] Water still going to have to be something that we work on.
[17:25] We can see in relationship to some of the road projects that we're going to be talking
[17:28] about later in this agenda.
[17:31] So we need to do some homework on that to give you some of that clarity.
[17:35] The second clarity is that you ask us to start researching opportunities from the state.
[17:40] Possibly there would be very, very low interest rates or zero interest rates through the water
[17:46] resources board.
[17:47] So that would basically give us an opportunity to start doing that type of research.
[17:51] So what we're recommending at this time is just delaying any action on any water
[17:56] or sewer rate adjustments until the end of the year.
[18:00] allows us to do this homework, report this information to you.
[18:04] As we also reported that there is a water and sewer increase in code currently, and as I
[18:12] was reporting just a moment ago, let me go ahead and repeat that in both 2018 and 2019 on
[18:18] January 1st, water rates would be going up 5% each year, and sewer rates would be going up
[18:25] 3% each year.
[18:26] Now, I think it's very important that, as we are talking about any projected rate increases
[18:31] above that, that is really an incremental increase that customers would be seeing above
[18:36] what they're already going to be seeing.
[18:39] And when we get our capital project in order, we'll have a better idea of what we're
[18:44] going to need for the bond issue and the debt service for those projects.
[18:48] So at this point, we're suggesting just holding off on any action on water and sewer until
[18:53] later this year for those reasons.
[18:56] One thing I'll say is the ordinances that you all have seen in the last couple of weeks,
[19:02] those water and sewer ordinances will happen to those if approved, of course, later on.
[19:09] They will actually just shift.
[19:11] In other words, they were supposed to have gone into effect in June of 17.
[19:17] Well, instead of that, if we decide to go through it, we get all of our ducks in a row and
[19:22] bring it back to you.
[19:23] Those are just shift over.
[19:24] So, basically, we'll again, you'll go out six months farther, essentially, is what it will
[19:29] do.
[19:30] Very simple.
[19:31] And it'll be a less of an impact in 18 because it's the 17th increase that we'll hit in 18.
[19:37] Okay?
[19:38] So, any concerns about delaying action?
[19:43] All of our depositors are great need, but we need to make sure we have our priorities straight
[19:48] and not borrow money prematurely, we're doing this as a salary.
[19:55] So, I don't know if there's no just to do that item.
[19:59] There's just to do that.
[20:00] That's certainly there.
[20:02] So, that takes us to item problems, which is me, business.
[20:06] Well, under new business, what I'd like to do is I'd like to ask Jill to make that presentation
[20:10] about the resolution in relationship to how much money would be transferred out of MSUA on an
[20:17] annualized basis.
[20:18] And then I'd like to follow up after that about our conversation today with Greg Nieto about
[20:24] some of our borrowing options that are that we have ahead of us.
[20:28] Okay?
[20:29] So, with this right study, the 1617 race that he provides for three electric bonds, we're just going
[20:37] to talk about electric for right now.
[20:39] It also provided for water, but I'm going to stick with electric.
[20:42] It provided for three, we're assuming 15-year electric bonds want to be for 8 million that
[20:48] have been 2019, maybe 18, and then three years later, another 8 million, and three years later, seven
[20:54] million, and a little bit.
[20:56] So we're assuming these are 15-year bonds at 4% interest.
[21:00] And the race that he also assumes that the transfers out of the MSUA for non-MSUA expenditures
[21:08] are going to be fixed from that point until those bonds are paid off, which could be 24
[21:13] plus years, depending on if we get a 20 year bond or 15 year bonds. So that really struck
[21:18] a chord with me this year because if we're going to do all the things, we're saying we're going
[21:23] to do, we have to we're saying that we're going to get them just enough money to pay for those bonds
[21:29] and the capital improvement expenditures. So that made me totally thanks to what, and it's all based
[21:34] on 16, 17 transfers. So I started looking at our 16, 17 transfers. And I figured up what was
[21:42] non-MSUA expenditures, and I came up with a figure of 4.1 million and some change. I showed you that
[21:50] that, that's actually there, that was in your packet. There were some things like health insurance,
[22:01] that was split, that was a cost that was partially MSUA and partially general fund. So I came up with a figure
[22:06] of 4.1 million. So I started thinking, okay, so if we have to limit those amounts, if we want to get
[22:15] these bonds that we're saying we're going to get and we've got to limit it to that amount from that point
[22:20] for a long time, what's that going to look like? And how do we limit that? How do we how do we tell
[22:27] a future council or future authorities that, hey, we intended to do this and we need to limit this? So I
[22:34] immediately thought about resolutions because that's something that an authority or a council can do and
[22:39] that just declares we want to do these things. And then I also thought about the street and alley ordinance
[22:44] that we have right now. So I kind of propose and it's in your packet. I kind of gave you just the
[22:49] answer that. I propose that we do a resolution with the MSUA and it says the mine especially
[22:57] utility of the word he here by limits funds transferred out of the MSUA fund number 510 specifically
[23:03] to and I put a line if you go down a little bit. So I put a line right there to put an actual hard
[23:10] dollar figure in there. This is what I'm starting with. You guys can change it but it will change how we can
[23:16] do bonds. And so that will affect our rates study or at least what we're saying we're going to do in our
[23:21] rate study. So I put a line there to say this is the hard figure that we're going to adhere to from now on
[23:27] that that's all the money that will leave MSUA for non-MSUA related expenditures. So I thought okay so the
[23:34] MSUA they can do this resolution then I started thinking about the council. So I thought about that we
[23:40] have a straight malay ordinance. It's ordinance number 1562 that was approved some time ago.
[23:47] But the guts of it said the annual budget budget's prepared by the city manager shall provide for no
[23:53] less than 500,000 for roadway maintenance. So that means the city manager has to present you a balanced
[23:58] budget with 500,000.
[24:00] for redway maintenance.
[24:02] Well, I thought, okay, so maybe the council can do it in ordinance that says, and your budget's
[24:09] prepared by the City Manager shall provide for no more than that same dollar figure in transfers
[24:15] to funds outside of the MSUA for non-MSUA related expenditures.
[24:22] Do you all want to ask you for a point of clarification when you were talking about the 500,000?
[24:28] I, you said that the budget will contain 500,000.
[24:35] Is that inclusive of the money we get back from this state as part of, I think, is the fuel tax?
[24:41] Or is that 500,000 plus?
[24:43] Yes.
[24:44] That's what I think.
[24:45] That's what I understand.
[24:46] That's what I understand.
[24:47] That's kind of how we assumed it when we first went.
[24:49] That's how we, that was the first time I got to pass whatever we get back.
[24:53] Yes.
[24:54] And all that goes in the street now.
[24:55] Yes.
[24:56] And then also, I think it's important to point out that it accumulates.
[24:58] So, if we can spend it all in one year, it carries forward.
[25:01] Yes.
[25:02] So, as I said, the budget you're being considering right now, and again, with the, with the,
[25:08] bid for micro-surface center, you're going to be considering tonight, probably over 2.4 million
[25:13] dollars available for a street going in the next fiscal year.
[25:18] And, you know, just because the unit says, it says that he has to propose, give you a budget that shows that.
[25:23] It doesn't mean you guys can say we're not going to spend the 500,000.
[25:26] You can take it right back out and move it somewhere else.
[25:29] But it says it just landed.
[25:31] Oh, picture panel.
[25:32] Yeah.
[25:33] It just struck my mind that that might be a way to, to do this.
[25:36] Because the history of the transfers, you saw that at your budget session.
[25:43] And that's why I came up with a show.
[25:47] And you're going to talk, speaking, I meant I know being to your conversations with Greg
[25:56] Nito.
[25:57] If you mounts this concept off of him or ask him if the other communities do have other mechanisms that they've used to.
[26:06] Because what we're really trying to do is provide assurance to the leaders.
[26:10] So, we can give the lowest possible right.
[26:12] And that's what it's all about.
[26:14] It's been sent in for us discipline.
[26:16] Yeah.
[26:17] I'll punish that.
[26:18] And hopefully future.
[26:19] Yeah.
[26:20] So, specifically today, we did not, because we were just talking about the structure of any borrowing at this point.
[26:27] We're going to have ample time to talk to them about that.
[26:30] This is not anything that we're going to be presenting to you immediately to borrow the funds.
[26:35] But I'll just go ahead and say way into that.
[26:37] But I think for one thing you were asking is for some kind of a mechanism that gives us the ability to do that.
[26:43] This is probably one of the best ones to come up.
[26:45] I think yeah.
[26:46] And so, before we said what I mean, I agree in July I appreciate it.
[26:49] It's done.
[26:50] It's done.
[26:51] That's done.
[26:52] It's done.
[26:53] It's done.
[26:54] It's done.
[26:55] It's done.
[26:56] It's done.
[26:57] It's done.
[26:58] develop some more
[27:00] turn discipline at least guidelines, if necessary, also a resolution not just for ourselves
[27:06] or for future counsel, so if they are going to change the number, they to at least
[27:11] it's a conscious decision and they understand the implications, because that's kind of
[27:14] where the example I use was we decided to do X and we don't really think about how my impact
[27:22] other elements like our borrowing ability. And I'm going to open it up as I know Brian
[27:28] used specifically had some concerns. If you have any comments or questions or you want them
[27:33] to continue to kind of flesh this idea up, I would like to hear if Greg Needle is a
[27:37] way of other mechanisms, if anybody else has any thoughts on it, please speak up. Or if you
[27:43] think there's one exact other direction that we asked, is tell them that? No, I agree and I did have
[27:50] some concerns with it. I like this concept and I appreciate what you put together. I like
[27:56] yourself. I would like to hear kind of a Greg has to say in it and you know, but we're going to
[28:01] do this for future. I want to make sure we try to put our best foot forward and I think I think we're doing
[28:08] that. So, I mean if I were up on what Greg has said, I think I'm okay. And you get to find understand
[28:16] this the money will be available. It doesn't mean that we have to spend it, but it will be set aside
[28:23] for our use or if we opt not to use it, then come back to 500. Yeah, 500. Yes, so even that 500,000,
[28:32] you know, it's by ordinance they have to show you or prepare a budget that shows you that, but you can choose to switch it
[28:37] and whatever council can approve it or say no. It'd be the same thing for MS2 or the MS2. It's just like
[28:44] our last budget hearing. We showed you all of the transfers. When you adopt the budget, those are the
[28:49] transfers you're adopted. So, as we go into future years, our budget would be following any kind of a
[28:57] resolution that you pass and we will be showing you where the transfers would be, but you would be
[29:03] approving those transfers. So, at a later time, you may say, you know, I would like to put more money into
[29:08] X so I'm going to take it out of Y, but the bottom line transfer would basically stay the same. So,
[29:14] that is, in essence, what we're trying to do is have that and even for our departments to understand that
[29:21] there's only so much money out there and that we have to limit it to this kind of transfer because
[29:26] any additional money, these rates that we're talking about, they're not going into operations as much as they're
[29:32] going into maintenance or going into capital that's sorely needed. So, we're trying to kind of show
[29:38] everybody, show the public show you and show even internally that we have to have that discipline, which means
[29:44] that we have to live with in our means. You know, when I came on to the council, I realized driving out
[29:49] the streets. We needed some work done on our streets, but I didn't realize just the extent of the
[29:54] cost and the magnitude of over 100 miles of streets in the city of mind.
[30:00] And you know, this will call the future accounts member set and here to understand we've got a need and we need to meet that needs.
[30:08] I think that echoes into our utility. It's the same thing.
[30:13] I have realized it.
[30:14] But now I think that was one of during our budget meetings.
[30:16] I wanted to make sure that whatever we're doing for this utility.
[30:20] I don't want to pay our utilities, but there's a need and they've done a great job of breaking it down.
[30:26] There's nothing hidden here of what needs to be replaced.
[30:30] And I know the public probably is going to be some of them going to be upset.
[30:33] But I think also those who don't want to set in the dark,
[30:36] I want to appreciate what Tyler and Dean and everybody on the staff has put together
[30:40] that says needs to be replaced.
[30:42] And I want to make sure that whatever money that this for utility,
[30:45] it's being spent on utility.
[30:47] And that's, you know, I wanted to, I hit on that pretty hard
[30:50] because we've let it go to a point where now that we need to get started getting fixed as well.
[30:55] So, one of the things that this does is we're going to be talking about it later when we talk about roads.
[31:01] But Tyler and I dealt with a concern that relates to what's going on on West Central.
[31:08] And some of our waterline improvements out there.
[31:11] West Central, without a doubt of all of our material streets, is quite far the worst we've got out there.
[31:16] It looks like Frankenstein's monster.
[31:18] But we haven't touched it for so many years because everybody's been so afraid about the utilities there.
[31:23] Well, by taking care of this as we're doing it, we can start putting together a plan of design.
[31:28] We'll be talking about that in a little bit where we replace the utilities.
[31:31] We make sure that when we fix the street, we're not destroying all of the water and sewer lines that are under that street.
[31:37] And make sure that we don't create even a worse problem by trying to solve a problem.
[31:42] So that's what we're trying to get at right now with this, with this program.
[31:46] There's nothing worse than having to fix a street.
[31:49] And then three weeks later, dig it up and fix it.
[31:52] Oh, I knew that.
[31:53] That was my concern.
[31:54] You tell them these in with.
[31:56] And why I was so, you know, I'll say that I was really hesitant on the sewer water.
[32:01] And I'm kind of requested.
[32:03] I don't know.
[32:04] I don't know.
[32:05] Because it has to go hand in hand.
[32:08] What we're going to do with our street.
[32:09] You've not.
[32:10] It's crazy.
[32:11] That's what put Tyler got.
[32:12] I would call for me when we had to dig up in front of any else after we did the market service.
[32:16] We just don't want to do that.
[32:18] We want to want to get it fixed and have to fix for a while.
[32:21] So you know, I think you've had it in your right direction.
[32:25] I'm actually going to jump to item later.
[32:27] That's going to.
[32:28] I'm going to talk to the council about it in a project.
[32:31] You know, don't.
[32:32] Can I just go a little bit.
[32:34] Thank you.
[32:35] That's.
[32:36] Continue.
[32:37] Or I guess kind of hang where you are now because I'm with like for you.
[32:41] Just ask where you need to help other communities.
[32:43] You're happy to address that issue.
[32:45] And I don't know if I fixed that on man is what.
[32:48] We want to, you know, if the end of the day if we end up with the percentage.
[32:52] Because is that number if it grows, you know, there's some flexibility there.
[32:56] But that's always enough to whoever the council is at the time to.
[33:00] to take those dollars in reproach some of the if they believe the need is there so
[33:05] I think we're thank you. I think we're heading to the right direction one thing I'd like to add then
[33:10] We're talking about Greg and he did he was in the area today. So he stopped by and we had a preliminary talk with him
[33:15] And obviously as we go on and if you haven't made Greg, he's our our bond council or
[33:21] Financial advisor basically
[33:23] but the night here's the good and
[33:25] kind of a not so good first is that right now
[33:29] Even with the fact increasing some of the interest rates. He's saying that hasn't trickled down to municipal rates
[33:36] Apparently municipal rates are still a very good buy
[33:39] He said a 30 year note right now is going at about 3.2% and a 15 is
[33:46] under 2.5% and that is those phenomenal rates
[33:50] He was very quick to say that right now in the country there's volatility if we have an issue with North Korea
[33:58] or we have an issue
[34:00] If any kind of a terrorist attack or anything like that, we remember 911 or other things
[34:05] The volatility all this could go out the window right now, but everything being steady in what the economic
[34:11] projections are in the country right now
[34:13] He's thinking in our time frame the time frame we just talked about
[34:18] That we could probably look at a 15 year rate under 2.5%
[34:22] Which I think would be wonderful if we could get that we did ask them about the possibility
[34:28] of
[34:30] We do have the flexibility to be able to for the first few months
[34:33] Maybe just pay interest and then start paying principle it could be structured that way
[34:38] Mayor I did ask about a question about if we could just pull down the amount of money that we needed
[34:43] He said we could but the problem is is that by doing that a couple of things would happen one is you got to pay for that
[34:49] There would be a cost for pulling it down and number two it might be structured in such a way that when you pull down the extra money
[34:57] Especially if rates go up you might have to pay those extra rates those extra financing rates
[35:01] So this thought would be if we're going to borrow we need to borrow that amount
[35:05] But we can structure it in such a way that when the rate increases come in possibly being paying interest in all that and working into it to make sure that our new rates
[35:14] We'll cover
[35:16] You know our new
[35:18] He also suggested that
[35:20] We consolidate everything under the same indenture
[35:23] So with the timeframe we're talking about with the electric rates going into into place in
[35:29] Next April with the water rates potentially going into into place in January
[35:34] The indenture would take place where even just basically look at what the projects are look at what the borrowing is and be able to
[35:42] Figure out what the borrowing would be based on the information that we have given him
[35:47] So he can work on that type of flexibility when we work with him on that. So I'm not sure I understand the distinction between
[35:54] and ensure
[35:56] The basically when we when you are borrowing the money
[36:00] you would be borrowing the money for electric and water and sewer. Everything would be
[36:04] under that one umbrella, we would be going to the market instead of a separate electric
[36:10] and a separate water borrowing. We would have all the borrowing under one action from you.
[36:16] Even though part of that would be going to water, part of that would be going to sewer.
[36:20] The final thing is just right now with those rates, if you're wondering what the effect
[36:25] is and we did some math, but it really turns out the rule of thumb is always that if you're
[36:30] looking at about a 15 year rate for about every million dollars you borrow, you have to
[36:37] set aside a hundred thousand dollars each year to pay it back. So an eight million dollar
[36:41] issue, you're going to have to pay it back every year about eight hundred thousand dollars.
[36:45] That's how we're going to have to make sure our rates cover us along that line. The final
[36:49] thing that has really nothing to do with gray, but just something to be aware of and
[36:52] Ben might be able to help us update this. But my understanding is, is that with the current
[36:58] budget shortfall that they have come to an agreement with GRDA, about four million dollars that
[37:04] would be going from GRDA's fund into the general fund of the state, that translates to about
[37:10] a 1% increase. Now, in relationship to that, what GRDA is asked for is some relief on some
[37:18] regulations that the state has on GRDA such as, I think, basically competitive bidding, things such
[37:27] as that, but they say that if they could get out from under those regulations, they would be able to
[37:32] reduce their cost. There's also a rate stabilization fund that they would be able to pull from as well.
[37:40] What they're trying to say is that if it was just four million dollars going from GRDA to the general fund
[37:47] and GRDA passed that along to their wholesale customers, which includes us, it would be about a 1% rate
[37:54] increase. What they're indicating is through this, they're thinking that they may not have to pass that rate
[37:59] increase to us, but that's iffy. And I think it's something we have to keep in mind that through no
[38:05] fault of our own, we may be looking at another 1% coming our way. Ben, I don't know if you have anything else on
[38:12] that or not, I think most people go ahead please. Yeah, at one point that bill is incredibly
[38:20] dense, but it's back alive in the end. It has a house or yesterday, I believe, and it's on its way
[38:29] over to the Senate, and it has to grab their hand away. But I think the Senate's size isn't where there
[38:35] are problems with the bill to be given away. But yeah, we were told exactly the same thing with
[38:44] the Senate, that they would be, you know, we don't want to raise taxes this bill, but it would be all great
[38:53] if the Senate has to be. And over the 1% of the Senate, the year of the A would be paying, but they
[39:00] It did express a strong feeling that was some of the other sessions made in that village as you were explaining that they would be able to make up a large part of that in not all of them.
[39:20] So I think it's just something to be very much aware of.
[39:23] I know I was in a meeting with Dan Sullivan and all of the wholesale customers.
[39:27] But I think everybody did not like this.
[39:30] But they recognize that fact that under what's going on in Oklahoma City right now, this might be the lesser of all evils that could potentially happen.
[39:40] Okay.
[39:41] So that's a report.
[39:42] All right.
[39:43] I'm 13 years staff reports.
[39:45] We're in fact important in packets if they're available.
[39:48] That's pleasant.
[39:49] Any questions on the event?
[39:51] If not, 14 is trusted community announcements and announcements.
[39:57] The movie.
[39:59] Someone movie has been moved to the Civic Center Friday.
[40:03] Is that right?
[40:04] Yes.
[40:05] It's been kind of in style of the park because we've got a lot of water down there.
[40:08] A lot of water in the park and potential.
[40:10] Five dollars a call on.
[40:12] If we can get the car wheels in.
[40:15] It's what it says.
[40:17] I mean, we used to get 20 people to call on the five dollars a call.
[40:20] That we had a big level of 11.
[40:23] So if you've got kids, bring them to the Civic Center Friday at 7.30.
[40:28] I think it is a movie star from C. Charles.
[40:31] I don't think 15 is a giant.
[40:33] They're most children.
[40:35] Come here.

📄 Full Agenda

NOTICE OF REGULAR MEETING AND AGENDA
OF THE MIAMI SPECIAL UTILITY AUTHORITY (MSUA)
Tuesday, May 16, 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 New Life Nazarene Church                                                 C. Hollingsworth
3.
Pledge of Allegiance                                        Trustee Lewis
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:  $1,175,530.54 as Described on the Attached Claims List                              Trustees
Claims List
7.
Minutes:  April 18, 2017                                                  Trustees
Minutes: April 18, 2017
8.
Reject all Bids Submitted in Response to Solicitation C17-103 for the NEO Sanitary Sewer Rehabilitation Project                      Tyler Cline/ S. McConnaughey
BA
Supporting Document 1
Supporting Document 2
PPT
9.
Amend Section 24-64 (Billing Tables), Subparagraph (d) of Section 24-57, (Residential Electric Service Rate Schedule), Subparagraph (d) of Section 24-58, (General Service Electric Rate Schedule), Subparagraph (f)(2) of Section 24-59 (Commercial Service Electric Rate Schedule) and Subparagraph (f)(2) of Section 24-63 (Industrial Service Electric Rate Schedule IS-1001), and Repealing Section 24-30.4 (Utility Board - Adjustment to Rates), all Contained Within Chapter 24 (Utilities), Article II (Rates and Charges), Division 2 (Electricity); Establishing Electric Rate Schedules.    Tyler Cline/D. Roundtree
BA
Electric Rate Ordinance
Transfer Limit Resolution
Transfer Limit Ordinance
10.
Amend Section 24-60 (Purchase Power Adjustment Schedule PPA) Within Chapter 24 (Utilities), Article II (Rates and Charges), Division 2 (Electricity); Establishing Guidelines for Recovering Power Cost Adjustment Surcharges Tyler Cline/D. Roundtree
BA
PPA Ordinance
PPT
11.
Discussion on Water and Sewer Rates Ordinance and Capital Improvement Plan        Tyler Cline/D. Roundtree
BA
Rate Increase Dates
Water & Waste Water Capital Plan
12.
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
13.
Staff Reports (Written report included in packet, if available staff is present for questions)                      Trustees
Solid Waste Report
Pollution Control Report
14.
Trustee Community Announcements                                              Trustees
15.
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.