Miami Special Utility Authority (MSUA)

📅 Aug 2, 2021 | Clip #364

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[00:00] My special utility authority board meeting for what is today August 2nd 2021 and we have the

[00:06] invocation by Mr. Herb Young from Pastor of One Church.

[00:32] Right, man.

[00:38] I put the allegiance to the flag over the highest stakes of America and due to the Republic for which the

[00:45] stands, well nation, how do we get out in divisible, what is liberty and justice for all?

[00:51] I mean this time of the job.

[00:57] I didn't do it. But I said, man, I was looking down to see if it was actually me.

[01:05] I know.

[01:06] Number four, public input around scheduled personal appearances.

[01:10] Don't have any?

[01:11] Number five, discussion regarding the implementation of the MSUA Electric Rates.

[01:17] Mr. Mayor of this was intended to be a joint presentation by yourself and Josh.

[01:29] Actually, get it on the agenda that way.

[01:33] But you have the discretion to allow for you to participate in this agenda.

[01:40] Josh, you may proceed.

[02:21] The response provided was that the bills printed in the name of the recharge to the higher rate.

[02:25] This raises lots of questions in my mind.

[02:28] Why did the other three cycles that month not have able rates applied to their usage?

[02:33] All four cycles usage was consumed prior to the before April weekend.

[02:37] How is that fair?

[02:39] Has anyone ever heard of the company playing a great early cost when they printed the bills?

[02:43] Wouldn't that be a problem?

[02:45] All companies have to figure out to make sure that their customers were not cheated?

[02:49] Let's try a few examples of this to see if it tracks the same even each scenario.

[02:54] If the federal government raises them on which higher than the city of some city employees currently may.

[03:00] You cross this payroll after the increase takes effect, but all hours work for the pay

[03:04] period.

[03:05] Your processing will work before the new minimum wage took effect, are you saying you would

[03:09] pay your own employees the higher rate for all hours work even though none of the hours

[03:13] will work after the new rates for impact?

[03:16] Let's try another one.

[03:18] If you make a purchase on Amazon Prime November, you pay immediately, but as I understand that

[03:24] they do not charge your billing method until the end of ships, are you saying that Amazon

[03:28] could raise the prices of the item between the time you pay, and the time the item

[03:32] ships out, and how could the ethical?

[03:34] With the city contracts out work with any company, and the work is done in the contract

[03:39] of rate.

[03:40] And they will you when the new rate takes effect, are you saying you will pay your own

[03:44] contract or the higher rate just because it shows the ability you have in the new rates,

[03:48] have taken effect, or what I would be right, that I am sensing some double standards here in my

[03:53] purchases and the amount of paying bills.

[03:56] Another example of ethics the city uses comes from their own website.

[04:00] There is an event queue section, I noticed at number 20 on the list asked, what if I don't have

[04:07] money in my account on the draft date?

[04:10] The response on the site says, if the draft is dishonored or returned, it's a $2500 fee will be added

[04:15] to your utility account.

[04:17] Once the utility office has been notified, you have a $24, no pay your bill, and a $2500 fee

[04:23] to avoid discounting your utility.

[04:25] It's a little difficult by mine to summarize this, if you sign up for Auto Bay, and you have

[04:30] your payment taken out of your bank account before the new date, every month, but have an

[04:34] issue, any month, ever, you will only have 24 hours to pay for this tax, even though non-Auto

[04:39] Bay customers have 10 days after the new date, Auto Bay customers who are repay will be paying

[04:45] before the new date, or only have 24 hours.

[04:51] I would have to say that this is either severely outdated information, or it's a weak double

[04:55] standard for Auto Bay customers.

[04:57] Other than that, I decided to use the statements that I have from the past few years to see

[05:01] the last years in Greece was billed, usage, prior to the increase as well, what I found was

[05:06] last year of the increase was applied late.

[05:08] I also found a lot of the last 14 months, nine, a period of show, under charge or over charge, but

[05:18] for the previous 14 months, I did see any issues since 2017, what has changed in the last 14

[05:26] months?

[05:27] When a Google definition of ethical, a show of being an accordance with rules for standards

[05:31] for right-honduct or practice, are you saying that it is right to practice charge and increase

[05:36] rates for users can assume before the rate increase goes into the effect, are you saying

[05:41] that that practice is ethical?

[05:42] If any of this has you question, if this is ethical, I think the citizens deserve the benefit

[05:48] of the doubt.

[05:49] I would like to ask the council if they feel like the money bill early, the 25% of the talent

[05:54] for consumption use prior to the April 1, when the rates went into effect should be...

[06:00] funded. I would also ask if you was committed to only charging increased rates in the future,

[06:06] to use it soon after the ring increases take effect regards to the bill and pay.

[06:10] So Mr. Mayor, I'd like to take this opportunity to share with the Council in citizens

[06:20] and information about how rates are calculated and adopted.

[06:24] So the city performs billing collections for the MSUAA and follows the rate schedule

[06:31] approved by the city council on May 16th, 2017.

[06:35] There's a handout in front of you that has that specific ordinance.

[06:42] And I'll be, I'll address that here in a minute.

[06:45] The rate schedule approved by the council was the product of a rate study

[06:50] performed via contract with Wildean Financial Services awarded in 2016.

[06:55] They took a consideration such factors as inflation, system growth and staffing levels

[07:01] in order to determine the net revenue requirement to be raised from the rates.

[07:05] If you are not familiar with Wildean, they are one of the largest public sector financial

[07:09] consulting firms in the U.S. with over 800 other municipal clients.

[07:15] The goal of the rate study is to predict future expenses and a revenue necessary to purchase and deliver

[07:21] electricity to all electric customers of the MIMO specialty utility.

[07:26] Very similar to the way GRDA sets their rates to recover their cost of power generation

[07:32] and transmission to the city.

[07:35] In our case, the city council sets the city's rates to purchase power and deliver power to each

[07:41] business resident and industry customer in MIMO.

[07:44] Our rates today and in the future must recover our costs.

[07:49] We've got to cover the generation, which in our case is 100% purchased from GRDA.

[07:56] We don't generate our own power, we purchase it.

[07:59] We have to cover our transmission and distribution costs, such as our three substations and

[08:04] 132 miles of lines around the city and the additional 11 miles underground.

[08:10] We also have to cover the cost of administration, such as meter reading, customer billing,

[08:15] account and financial services, communications and customer service to name of you.

[08:20] We also have to cover our operating amortments costs, which is the cost of our staffing and

[08:25] alignment.

[08:26] So when there's an issue, we have people send out and go repair whatever issues may arise.

[08:30] We also have to cover the cost of tree trimming and clearing our right of way.

[08:35] We also have specialized equipment and vehicles that we have to be able to maintain purchase and

[08:42] keep available.

[08:45] We also have capital outlay, which is the outlay for any of our capital improvements that we do on our

[08:51] infrastructure, which are infrastructure like anything.

[08:55] Ages out, and a great deal of our infrastructure is aging out today.

[08:59] This is...

[09:00] substations that we have were built in the 1970s.

[09:04] They are extremely expensive to maintain in replace when they age out.

[09:09] We also have to be able to cover the cost of our debt service, which is our bonds or

[09:12] loans that we have to get to acquire the funds to be able to maintain or replace this equipment.

[09:20] Obviously, we're all seeing larger and larger demands of electricity today than we ever have.

[09:27] The great example is just the other day on July 28th at 424 p.m.

[09:32] It's the Southwest Powerpool that gerity aids and us are all part of saw one of the highest

[09:39] utilization in the history of the Southwest Powerpool.

[09:44] There was 51,000, 37 megawatts pulled on that system.

[09:50] For example, during our winter storm, the highest load that we saw on the Southwest Powerpool

[09:55] at that time was only 43,000 megawatts.

[09:59] So again, obviously, power is important in the infrastructure that we run it on is extremely important.

[10:07] The city is a nonprofit public service entity that must collect adequate revenue to cover the expenses

[10:12] of providing these services.

[10:14] All funds collected go right back to our citizens and services, public safety roads and other municipal

[10:20] infrastructure.

[10:22] Some are bills are a product of the charge per kilowatt hour times the usage has metered

[10:28] from the previous month as we all know.

[10:32] So you can see on the document the ordinance that I handed out on the backside, there's a charge.

[10:40] That charge is the rates that were put in place and adopted by the council.

[10:46] So as presented in the rate study and in our city ordinance, the specified charge were rate

[10:51] is to be effective in April of each year in stays in place for the consecutive 12 months.

[10:57] So when you look at the chart on the screen here is very small, so I hope everybody can see it,

[11:02] but the ones that I've handed out to you under E1 is our residential customer charge.

[11:09] The ordinance specifically states, charge per kilowatt hour on the far left.

[11:15] And then across, you can see that kilowatt hour is to be effective April of 2021.

[11:21] So those charges are interpreted to be effective April 1st.

[11:26] So this methodology has been executed the same way since this city ordinance was adopted.

[11:33] It's been the same each year since 2017.

[11:36] Any deviation from this methodology would impact the annual revenue projected in budget to specifically

[11:44] address the question that was brought up is if you look at this over the five year period

[11:50] in which this plan was put in place in any particular case, the rates are going to be

[11:57] in effect for exactly 12 months.

[12:00] Any one that's bill is impacted or modified during a particular rate change is going to be impacted for exactly 12 months

[12:08] So if you're late to the impact then you're going to get an additional month on the end and so forth

[12:13] But it has to be executed the same each year and no one is is

[12:17] If you look at the total payment over a year it would be the same no one got any additional months give or take

[12:25] Less that makes sense it's always for a period of 12 months

[12:29] So

[12:32] Lastly, you know any assumption that there might have been something you know nefarious at play

[12:37] By the city to collect additional funds or otherwise couldn't be further from the truth

[12:42] The city works very hard to control costs

[12:45] We work very hard to provide services to our customers after all these are the citizens businesses and industries of Miami

[12:54] But the rates that we put in place have been applied the same

[12:59] Ever since the plan was adopted by the council

[13:04] You'd be happy to answer any questions you would have so did that

[13:08] Also happen in 2020 so it looks like it went up 38 cents

[13:13] I believe actually in 2020

[13:15] Correct me if I'm wrong bin that rate increase was delayed two months because of the COVID

[13:21] Because they got two months that were still on the old rate when they should have been that high rate

[13:27] I don't remember the exact

[13:29] I think it was June 1st

[13:32] It was actually just a loss of revenue to the city for two months

[13:38] So I guess what Josh is saying is in he can correct me if I'm wrong

[13:45] I think since his use was used before April 1 in all of the four billing cycle

[13:53] That they shouldn't have their rate increase until

[13:57] You know their fourth billing cycle in April and not March

[14:03] You know I know the rate increase took place April 1st

[14:07] The rate was applied yeah the charge was applied April 1st

[14:11] But billing system they didn't use that power in April they used it in March

[14:19] Nobody would have used that power necessarily did

[14:22] I mean that's what I'm trying to say is it really doesn't

[14:23] So it's a matter for the citizens to understand why everybody in the fourth billing cycle is getting charged

[14:32] At the end of for their March bill

[14:35] In not for their April starting with their April bill

[14:39] You get what I'm saying

[14:41] I do but I think it's it's just a matter of everybody that

[14:45] Everybody that had power usage for the previous month

[14:51] It's always estimated a 30 days

[14:53] Right and then that goes into effect April 1st

[14:58] And so those charges are

[15:00] applied to any bill that's calculated in the system.

[15:02] So what they do is they literally go into the system

[15:04] and they have to plug in a rate before they calculate bills.

[15:09] So it should be in the late of week is what the citizens feel.

[15:13] It should have been the late of weeks since there's four

[15:15] billing cycles.

[15:16] If you look at that ordinance, it doesn't say anywhere in that ordinance,

[15:19] anything about what apply to when you get a,

[15:23] it actually says the factory day, April 19th,

[15:26] and it says residential customer charge.

[15:29] So it doesn't say usage prior to that because we bill,

[15:32] how does the anywhere in your e-war facility think about billing?

[15:35] What it actually says is effective April of 2019.

[15:39] It's not the 19th of April, which is 2019.

[15:42] Why are you going to say that it doesn't say any about billing at all?

[15:45] Well the billing is a factor of the, is a charge of the rate,

[15:49] which is a charge in the usage.

[15:52] And so when you look at the way the ordinance is developed,

[15:55] it says charge per kilowatt hour effective April of 2020.

[15:59] So do you get agree with the examples I gave that if the federal government

[16:02] might as a rate is in the middle of the age, you will pay.

[16:05] Well, we're not doing minimum wage.

[16:07] We're talking about elected rates.

[16:08] It's the same comes, I don't see any difference.

[16:14] The only difference is do you pay any people out of the city budget for something

[16:19] that was, they weren't prior to the rate going into the fact that's the same example

[16:23] that we have here.

[16:29] I don't, Josh, I'm not seeing your math, brother.

[16:33] Okay.

[16:35] So what I'm saying is a, let's say somebody works with City of Miami in March

[16:39] for the last two weeks of the month.

[16:41] And you don't process that payroll in some April.

[16:44] Venom wage goes up in April.

[16:45] You're going to pay those previous two weeks at the higher rate that you didn't work at that rate

[16:50] because you did the, because you processed it after the name.

[16:53] That's the question.

[16:56] Yeah, I don't think the same methodology would apply as it does with your rate calculations.

[17:02] But we can, we can, how to up and go through it any time, and maybe we can figure out

[17:09] the math difference that we have.

[17:10] Okay.

[17:11] Okay.

[17:18] Any other questions?

[17:19] You're.

[17:22] I'm not hearing on some level though.

[17:25] That the, that the increase is going to run for 12 months, whether it happens in the last

[17:33] week of March or the second week of April.

[17:35] Great.

[17:37] So it's 12, it's 12, it's 12, it's 12, other than it.

[17:45] Just not.

[17:49] And if I'm under a sense, per size, this maybe we'd like it to be.

[17:53] Is that fair?

[17:54] Well, I mean, like I said, the usage started on February 26.

[17:59] I find it.

[18:00] Electricity I use in the month of February starts at a higher rate than I think I can

[18:12] They used in February?

[18:14] Yes, that really cycles from February 26 and March is March 26, so, you know, starting in April,

[18:21] So February, you build at the higher rate in the month.

[18:25] Right.

[18:26] And, you know, furthermore, you're talking about, if you've got usage that spans multiple months,

[18:33] we would have to build the usage in two separate great factors.

[18:38] I understand that part, so if we were talking about in June 26, the June 26, I'd expect

[18:43] you to come to me, you know, my bill, if you're getting in about two, which is the middle

[18:47] of the cycle, I understand that.

[18:48] If that's what we're talking about, we're talking about a whole month prior to that.

[18:52] We're talking about June 26, the September 26, the April 26, the April 26, the April 26,

[18:57] the April 26, the April 26, the April 26, the April 26, the April 26, and the April 26, the April 26,

[18:59] to raise 26, through March 26, none of that electricity was consumed when the rate increases

[19:05] in effect is all consumed before the rate of increase went to effect.

[19:08] We're only talking about a building this year.

[19:10] Right.

[19:12] And it's when the rate is applied, which is April 1st, the same every year, the exception of 2020.

[19:20] The exception of 2020 to the total number.

[19:22] But I see what he's saying now.

[19:24] You know, from the customers in the airport, I get what he's saying.

[19:31] His rate increase didn't take effect until he gets his bill for this month.

[19:35] So the first cycle is when the rate increase had taken effect.

[19:39] I think if you look at it like gas prices, you go to the gas station yesterday and got gas.

[19:44] And it was $2.25 that same gas is still in the tank.

[19:48] Nobody's bought any different gas.

[19:50] That's the next day.

[19:51] It goes up, 10 cents.

[19:52] I can't feel Rob as a customer because I'm paying for the same gas from yesterday that was,

[19:58] I mean, does that make sense?

[20:01] 10 cents a gallon.

[20:02] It's the rate.

[20:03] The rate is.

[20:04] What's 12 rate?

[20:05] Right.

[20:06] Once it's applied in April, it applies to all those chargers that took place.

[20:09] All the calculations that happened in April.

[20:12] And then they run for 12 months.

[20:14] And then they change again per the rate schedule.

[20:17] You're in your scenario around.

[20:18] You're talking about paying a front and talking about paying after the back.

[20:21] The better rate is the rate.

[20:23] What's up?

[20:24] I'm not quite saying.

[20:26] It's a good or service you paid for that yesterday was worth X and today is worth Y.

[20:32] What is the same exact gas in the ground?

[20:34] What was your take on my examples?

[20:36] That's the same equation.

[20:37] How high was on those?

[20:38] And those scenarios?

[20:39] Do you think those are at the top of the pipe?

[20:41] Not the same way as well.

[20:42] I think in those cases it's a different scenario.

[20:45] If a pancrease went in middle way, middle way through the paper, you would get dual rates.

[20:53] You would get paid for the first week at one rate and the second week at the new rate.

[20:57] Right.

[20:58] The question is, is all of the hours worth our prior.

[21:00] of this new building process of the mineral, should you take it out of the IRA and work it out of the IRA?

[21:05] As Bo said, pay rates aren't the same as electrical rates we're talking about 12 months in succession.

[21:13] I guess my question I didn't say it right clearly, but Bo said matter if it's April calculations through March or May or May.

[21:25] I think it does on some level, because we're talking about usage, and you have no idea how much you use these,

[21:29] just going to be this month versus the next month versus 12 months for now.

[21:33] And you apply to higher rate for usage now early in the fortune of buying, you know, and increase the search chart as well.

[21:40] I mean, we have to really crunch a whole lot of numbers to answer that question.

[21:44] Days and days and days.

[21:46] And I think that's probably why we relied or the city relied on wind-up financials to set the fee schedule.

[21:54] Back in 2017, this is one of the largest financial institutions that does these type of actual real studies.

[22:00] And basically created the implementation plan for the city that was adopted back in 2017.

[22:08] So maybe that's a question that we can bring them in and talk to them about.

[22:13] Those are the smart guys that know how to set up these rate factors.

[22:19] Do they do it that way at AT&T today?

[22:21] Raise the internet price.

[22:24] I don't know, I'm not in billing.

[22:27] I don't have a clue.

[22:29] There's certainly nothing to very simply.

[22:33] I can assure you, Josh, nobody's trying to take your money or anybody's money in that cycle.

[22:38] And we're more than happy to continue looking at this.

[22:41] But, you know, we'll have to go back to our rate study and talk to the experts if we need to.

[22:47] But this is the way it was put in the ordinance and the way that it's been implemented and executed for the past four years.

[22:53] So you're saying April of 19 would have been the same exact way.

[22:57] April of 18 and 17 and 16.

[22:59] There's no rating increase.

[23:02] It's stayed the same for three years.

[23:04] 17, 18 and 19.

[23:06] There was not a rating increase.

[23:08] Not all of them.

[23:09] Every year it's just there.

[23:10] Some of them are in charge of some of them.

[23:12] Right.

[23:13] Right.

[23:14] Some of them are in charge of some of them.

[23:16] Right.

[23:17] Some of them are in charge of some of them.

[23:18] Right.

[23:19] Some of them are in charge of some of them.

[23:22] Right.

[23:25] So when 18, 19, 20 and 21.

[23:27] I went from 1994 to 1972 to 10, 21 and 10, 52 out.

[23:31] All those changes would have been impacted your bill.

[23:34] Correct.

[23:36] But also remember last year you got two months without a rating increase that you should have had.

[23:42] So I kind of offset the one this year.

[23:47] Correct.

[23:48] You actually want still.

[23:50] I've got a free money.

[23:52] I completely understand what you're saying.

[24:00] saying, and I understand the logic behind what you're saying, but it's the schedule of how

[24:04] they calculated is what's throwing you.

[24:06] And if you were to go back and look at these previous years, besides 2020, I think you'd

[24:09] find the same thing happening.

[24:10] I guess I understand why the harder it is to just build that next month, so that there's

[24:17] not a question here, why why do we have to have that?

[24:20] If we just waited a month to delay it, all you're doing is shifting that revenue one month

[24:25] into another fiscal year.

[24:27] But at the end of that 12 months, you would still collect the same amount and still charge

[24:31] the same amount.

[24:33] And calculate your bill over a year at that rate, at your average usage, you would just

[24:39] still be the same.

[24:40] No matter if you started it in April or May.

[24:43] I guess it doesn't have a bad idea.

[24:45] It's right.

[24:46] It's wrong.

[24:47] I don't agree to find it.

[24:48] I don't know about it.

[24:49] So this ordinance is it going on past 2020?

[24:56] It is not.

[24:57] That is five years in which it was adopted.

[24:59] It ends at this rate.

[25:01] Okay.

[25:02] So we're going to have an opportunity to do a new ordinance and this is something we can look

[25:07] at and talk about and try to fix it in the next one.

[25:12] But you're still not the head.

[25:13] So you're still waiting.

[25:14] And then we'll look at this ordinance and try to get that corrected towards coming out and

[25:19] good for everyone.

[25:20] Right?

[25:21] Great.

[25:22] That gives it a right.

[25:28] Any other comments?

[25:29] Any other questions?

[25:30] You're good?

[25:31] No more questions.

[25:32] Anything?

[25:33] All right?

[25:34] We'll move on to six.

[25:37] The consent agenda staff recommends we approve item seven through nine.

[25:41] That's so good.

[26:00] Second.

[26:02] Michael?

[26:03] Hi.

[26:04] David?

[26:05] Hi.

[26:06] Hi.

[26:07] Hi.

[26:09] Ten.

[26:10] Resolution authorizing the acquisition of property from widening of the feeder 23 alleyway.

[26:16] Mr. Tyler.

[26:17] Yes sir.

[26:18] So this is what we've approved last week on the city side.

[26:20] So this isn't approved.

[26:23] This is.

[26:25] This is.

[26:26] Tell us where the alleyway starts at the end.

[26:27] So we're going to go from get rich.

[26:29] If I can try to come through there plus.

[26:36] Our sewer truck.

[26:37] Our jet water.

[26:38] If your sewer is backed up.

[26:39] We can't get it down through there.

[26:41] Other.

[26:42] Main transit.

[26:43] Main line through there.

[26:44] Main transmission line through there.

[26:45] Main transmission line through there.

[26:46] Yeah.

[26:47] Our main feeder goes through here.

[26:49] And so this way.

[26:50] We have a storm or some kind of add.

[26:51] We can drive a truck.

[26:52] We don't see that.

[26:53] Check.

[26:57] That's between H and I.

[26:58] Two correct.

[26:59] Yes.

[27:00] Yes.

[27:01] Yes.

[27:02] H and I are H and G.

[27:04] H and I.

[27:05] H and I.

[27:06] H and I.

[27:08] H and I.

[27:09] H and I.

[27:10] H and I.

[27:12] H and I.

[27:13] H and I.

[27:27] I.

[27:28] I'll make motion to approve.

[27:29] Second.

[27:31] Parker.

[27:32] Davis.

[27:33] All right.

[27:34] Number.

[27:35] Hi.

[27:36] Hi.

[27:37] You understand right there number 11.

[27:38] Approved resolution authorizing acquisition property for highway 69 infrastructure expansion.

[27:44] So this is for like you said, the expansion on 69 a.

[27:48] This is to get a sewer out.

[27:51] Along six to nine a.

[27:52] And to do that, we need additional easements to get that out there.

[27:56] So we've already talked about long, long, long, long, long, long, long, long, long, long, long, long, long, long, long, long.

[28:00] Previously.

[28:01] Did we get that long done?

[28:02] With with this being a fruit, we will get it done.

[28:05] And Sean's here if you have any questions also designed to sewer.

[28:11] But clear the last hurdle of environmental.

[28:15] So it'll be good.

[28:19] And Charlotte talks about out getting utilities out to those areas that there's not business as that.

[28:25] Well, well, then recruit businesses out there.

[28:28] So I mean, this will supply server to Janet Farms plus be out there for anybody else to use.

[28:35] I'll make a motion.

[28:36] Second.

[28:41] Simple.

[28:43] Hi.

[28:44] Sumber.

[28:45] Eastern.

[28:46] Davis.

[28:47] Hi.

[28:49] Thank you.

[28:50] Number 12 will be tabled.

[28:54] Number 13.

[28:55] Approved.

[28:56] Six month master agreement work order.

[28:58] 21.

[28:59] Two dash one for generally varying.

[29:01] With ultimate associates.

[29:03] Mr. Sean.

[29:04] Tony.

[29:06] But we talked about the game transition.

[29:14] Sounds like we all might want to go back out for qualifications.

[29:17] Seeker sent a house out there.

[29:20] So that of these keeps you an engineer in house for six months.

[29:25] How has that been?

[29:26] Probably.

[29:27] She could absolutely take six months.

[29:30] And we've got to develop.

[29:33] To develop the RFP, you put it out to bid and do a proper evaluation and then award.

[29:38] Six months.

[29:39] Can't be fairly aggressive.

[29:41] Yeah.

[29:43] But if it takes longer than six months, do we have, like, something where they just stay on in a certain rate?

[29:50] We could.

[29:51] We could.

[29:52] We could.

[29:53] We could.

[29:54] Yeah.

[29:55] Hopefully.

[29:56] We'll figure something out.

[29:57] But yeah.

[29:58] We'll work something out.

[30:08] Thank you.

[30:09] Fourteen discussion on GRDA winter storm estimated bill.

[30:26] I'd like to point out that this is the estimated bill from GRDA, so we have a meeting

[30:30] with them a couple weeks ago.

[30:33] As of the last few years, I'm wish we talked about on a slide in here that I was up to

[30:37] seven.

[30:38] I think that would be there going through, I think, imagine lawsuits to the SBP, and so, you know,

[30:44] if the SBP was just some lawsuits, and obviously they passed on to all their customers.

[30:48] If they went some of them, that would give you a doubt.

[30:51] So we would just say estimate.

[30:53] We had not got our final bill.

[30:54] This was just giving the citizens an idea of what to do a little bit like.

[30:57] So the total cost of purity is bill was 102 million dollars for those weeks for that week.

[31:08] So I think what they say about the 70% of what they've budgeted a year for power.

[31:14] This is kind of the breakdown of what went on, you know, as far as the issue is of the E8-3.

[31:25] You know, I went from E8 level to level 2 level 3.

[31:28] And so I'll admit, I never even thought we'd be here.

[31:32] I mean, I know I called, though, when we got plus on, we talked about it.

[31:35] And then we went to level 2.

[31:36] And it was like, hey, we're going to check your power now.

[31:39] So we had guys working on the second one we did on Monday or Tuesday.

[31:45] It was about more transition because they gave us a little time to shut down stuff slowly.

[31:50] I wanted to shut it down until we got better at it.

[31:54] I will say too.

[31:55] I'm starting to wrap up.

[31:56] But after day one, there was lots of phone conversations of how to handle it differently than day one.

[32:01] And Tyler did a great job of being able to step those down and give us more time to tell people.

[32:07] So it worked good.

[32:08] I mean, we had, I was in sub 2.

[32:10] When all the time, we were in different sub stations and we took Peter down.

[32:14] I mean, Jared, it was when some of us, yes, that's enough to load the drop.

[32:17] We actually had a hour going to rotate through if we had to go another hour.

[32:21] So I mean, we had a good plan.

[32:23] And my question, I mean, it does make you wonder, I mean, SBP set up all the time record last Thursday.

[32:30] For usage.

[32:31] So one of the grids, obviously usage is our SBP grade.

[32:36] This is what, I know everybody's wondering about.

[32:39] So this is what our project is built, so our project to build is 2,698,000,000, $459.

[32:46] Or 2.7 million.

[32:47] That's what.

[32:48] So a lot of their 102 million.

[32:50] We are at 2.64% of that and then our energy consumption usage was right there for that month.

[32:59] Get a kiss.

[33:00] And Tyler clarified that's an approximately, that's just a number they're giving us right now.

[33:04] So it's continuing to lawsuits that they're dealing with until those are settled, that number may vary a tiny bit,

[33:11] because it's really, they're 100 and 200, and they'll change a little bit.

[33:15] Yeah.

[33:19] Is the amount of anything you ask questions?

[33:20] I'll be going to finish them as the questions.

[33:23] The next slide is, you know, kind of give you an idea of how it is, how it is so high.

[33:27] So I mean, you can see the natural gas prices, how they jumped up, and there was kind of

[33:32] for their paying over $1,000.

[33:34] And that could turn for gas when they were buying it.

[33:37] For more, I'll figure where you're buying it, but I think for $4.

[33:41] So kind of an interesting graph.

[33:48] This is their low first generation, so this is, so you can see the actual low is the black line,

[33:56] and this is their actual generation, so everything they had going on to try to meet their low demands,

[34:01] so they actually had to buy in these areas, you know, power on on the grid,

[34:05] to be able to keep a little third load.

[34:07] They told them that when I drank them meeting that, you know, they'd do a crack,

[34:11] the new combined cycle plant, and they only run it at half capacity,

[34:15] because there was a worry that they could afford their natural gas bill,

[34:18] and then it would grow faster.

[34:19] That was definitely interesting.

[34:24] You see, that's the cola.

[34:25] They talked about the actually ran more water out of the pit,

[34:28] let's go with the dam to try to get more head pressure to the next dam

[34:31] to generate more hydro power.

[34:33] They do a lot of interesting things, either we think of them.

[34:36] You know, when was the much,

[34:37] and obviously during the weather event?

[34:40] So, in the next step, so is everybody said, what's next?

[34:46] So, GRDA will meet with the water directors,

[34:48] and they're going to look at how they're going to do a cost recovery

[34:51] at a future meeting, so they're looking at calling as a PCAX,

[34:54] so PCA, for the extraordinary event.

[34:56] So if you know, as we have PCA, our bill is now in the power cost adjustment,

[35:00] so be a separate line on there will be PCAX,

[35:03] for this one to weather again.

[35:05] So they're going to determine the final cost of your cover,

[35:08] they'll approve the new schedule PCAX,

[35:11] and those are going to determine the debt repayment points.

[35:13] So currently they're looking at three different ways

[35:15] that we can pay them back, so we can pay them back

[35:17] of the trading magic one time,

[35:20] and being done with it.

[35:21] They're looking at allowing us to carry it for 12 months,

[35:24] and pay every month, every three, four,

[35:26] finance, and four, certain amount of time.

[35:28] And that's still a discussion,

[35:30] only the time that they would finance it for.

[35:32] And obviously any carrying cost of that note,

[35:35] and everything that would pass on to us.

[35:37] From talking to other cities, it's kind of all over the world,

[35:42] what they're going to do.

[35:43] I think as we get closer to time,

[35:47] we'll get a better idea.

[35:50] So also, what is the city going to do?

[35:54] So as a yearday, it works to determine the final bills,

[35:56] the city will look at every payment options for different data classes.

[35:59] So you know.

[36:00] So we have a lot of industrial customers, I think, that number, almost 40% of that number was based

[36:05] on industrial usage, which is kind of crazy if you think that through this thing customers

[36:08] that we're asking do not.

[36:10] I mean, you used, but I mean, they still have to, you know, operate this facility.

[36:16] So, and also, you know, for them to carry a debt for so many years, it's hard for them

[36:20] because they are publicly traded, so they would have to, it's like list that the SEC is

[36:25] as a liability for the half.

[36:28] So, we're going to talk to the industrial customers and see what their ideas would be,

[36:32] what they would like to see, do they want to write a check for their portion?

[36:35] They want to, you know, carry that over a couple of years, how would they like to do it?

[36:41] And then we present these options.

[36:42] I've featured meeting for obviously for the MSUA and the Council to approve.

[36:50] The good news, if there is any, is, you know, other than the, the city has to pay to you already a $2.7 million.

[36:59] How we recover that, we're going to be as absolutely creative as we can be to minimize the burden

[37:05] on our customers, our industries that carry a significant portion of that cost and then certainly

[37:12] our residents who don't have the ability to have a large swing in their electric bill or pay it off

[37:19] in a short amount of time, we want to find a way that we can stretch it out and make it as doable as possible

[37:28] for everyone with little impact without, of course, carrying the debt for a, a trip in this amount of time.

[37:34] Because debt cost money as well, so we have to try to balance that too, but luckily we are in a good financial position

[37:41] to be able to work with the Council to make a decision on some of those options and come up with something that's palatable for everybody.

[37:51] You know, we've got a lot of really good people working on this problem to solve it for the citizens at large.

[38:00] Do you have any questions for Tyler Bowell?

[38:02] Sure.

[38:06] You said 40% of the investment on how many accounts are the best relevant to that point, which is in a $2.7 million.

[38:24] All right.

[38:28] Being positive, Josh, I would think that the fix for this may, may shine a different light on our concern about March.

[38:38] It certainly will have an impact.

[38:40] All right.

[38:43] Thank you, Tyler.

[38:44] 15 staff reports.

[38:53] 16 other new business of any of the residents in the post of this agenda.

[39:01] 17 trusty community announcements 18 adjournment

📄 Full Agenda

NOTICE OF REGULAR MEETING AND AGENDA
OF THE MIAMI SPECIAL UTILITY AUTHORITY (MSUA)
Monday, August 2, 2021
6:00

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 Parker
2.
Invocation by Director of Invocation by Pastor of One Church Herb Young
3.
Pledge of Allegiance Trustee Davis
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.
Discussion Regarding the Implementation of the MSUA Electric Rates Chairman Parker
6.
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. Staff recommends that Item 7 through Item 9 be placed on the consent agenda.
7.
Approve Claims Trustees
Claims (June 30, 2021)
Claims
8.
Approve Minutes: June 19, 2021 (Regular) Trustees
Minutes
9.
Approval of Amendment to Annual On-Call Asphalt Paving Contract with Teeter’s Paving (C20-58) Krista Duhon
BA
Contract Amendment
10.
Resolution Authorizing the Acquisition of Property for the Widening of the Feeder 23 Alleyway, Including Easements and the Settlement of Claims Related to the Acquisition of Property Tyler Cline
BA
Resolution
Map
11.
Approve Resolution Authorizing Acquisition of Property for Highway 69A Infrastructure Expansion Including Easements and Settlement of Claims Related to Acquisition of Property Tyler Cline
BA
Resolution
Map
12.
Approve E Source Work Order Contract for AMI Metering Field Survey and Grant Writing Services Tyler Cline
BA
Draft Proposal
Non-Collusion Affidavit
Email
13.
Approve Six-Month Master Agreement Work Order 21/2-1 for General City Engineering Services with Olsson Associates, Inc. Shaun McConnaughey
BA
Work Order
14.
Discussion on GRDA Winter Storm Estimated Bill Tyler Cline/Bo Reese
Presentation
Options
15.
Staff Reports Trustees
16.
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
17.
Trustee Community Announcements Trustees
18.
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.