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Miami Special Utility Authority (MSUA)

📅 May 2, 2022 | Clip #414
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[00:00] Please, second, 2022.
[00:02] We'll have the invocation by retired pastor First Christian Church, Mr. Leon Wies.
[00:14] Thank you for our strength and for being able to be here tonight.
[00:20] Thank you for the wisdom of this group.
[00:23] For the continues to bless them.
[00:25] Apart from this, they look down the room trying to figure out what's past.
[00:30] You can encourage them when they make it a season.
[00:34] It was to live a community board to appreciate them and do all they can to make your job better.
[00:42] Bless us right here tonight, Lord.
[00:45] Jesus name that great.
[00:48] Amen.
[00:49] Thank you.
[00:50] Thank you.
[00:51] To the five of the United States of America.
[00:54] And to the public for which it stands.
[00:57] One nation under God.
[00:59] And it is all with liberty and justice to us.
[01:03] Thank you.
[01:05] Four on schedule public input on schedule personal premises.
[01:12] Five consent agenda staff recommends we approve item six and seven.
[01:17] Second.
[01:19] Davis.
[01:22] Is that.
[01:23] Hi.
[01:24] Hi.
[01:25] Senator.
[01:26] Hi.
[01:27] Parker.
[01:28] Hi.
[01:29] A presentation presentation of Board.
[01:31] A broadband feasibility study by uptown services.
[01:34] They did a broadband survey.
[01:44] They did a big business for the city itself.
[01:48] And they do a contact negotiations for.
[01:51] That's a great.
[01:52] On some of their stuff on their fiber and different things.
[01:55] They're very up in the game.
[01:57] Broadband.
[01:58] And so.
[01:59] And there's a concert really interesting.
[02:01] So as you all may remember.
[02:02] We did a previous study back in.
[02:05] Seven.
[02:06] Seven.
[02:07] I think it was which we had gone through that study a while back.
[02:19] And one of the outcomes of that was we discussed getting an update to that.
[02:23] Knowing that quite a few things have changed.
[02:25] So.
[02:26] These gentlemen are here to walk you through our current study.
[02:29] Hi.
[02:30] Good evening.
[02:32] I'm Happy to be here.
[02:33] I'm Dave Stockton.
[02:34] Principal of Town Services.
[02:35] A thing is shop.
[02:36] Also principal of Town Services.
[02:38] I want to talk you through.
[02:40] Kind of over view of the ease of the study that we produce.
[02:43] I believe you have a forward forward tonight for the sake of time.
[02:47] You're just going to kind of go through sort of an executive summit.
[02:50] Just hit the highlights.
[02:51] I really appreciate the opportunity to be here with you.
[02:55] It was nineteen years ago that we were in the same situation.
[02:58] situation.
[03:00] performing in the feasibility study for cells.
[03:03] They did cells, they wanted me to decide to proceed.
[03:05] And in 2005, they launched their fight
[03:07] in the time of this test on the cell.
[03:10] So it's interesting to see how this is evolved, you know, for all that.
[03:13] So the objective of this study is to really evaluate
[03:16] the financial feasibility of this kind of investment.
[03:20] And the idea of the reason this value is to do this
[03:23] is to basically add, you know, more infrastructure
[03:28] and capability within the technology arena to the community.
[03:32] Where that's affordability or just a capacity to develop them.
[03:35] But broadband over time has become more
[03:37] than utility, more necessity, even for homes, not just business.
[03:41] So it's something that's important to be able to look at.
[03:46] The scope is here.
[03:47] This is what we'll go through at a very high level time.
[03:50] The main point here is to get to perform a financial analysis
[03:54] and understand what the financial buyability looks like.
[03:57] And we'll look at four different scenarios,
[03:59] depending on whether or not there's great funding
[04:01] and depending on which business model you go.
[04:05] In terms of the service offerings that we're talking about here,
[04:09] it'll be internet and then voice services as well,
[04:11] but of course, the focus is on internet.
[04:13] And that would be for all residents and businesses in the community.
[04:17] And any more ecosystems because they're a peer fiber
[04:21] and because it's evolved over time in the standard space now,
[04:24] very high capacity.
[04:25] So the baseline tier would be one year of symmetrical.
[04:29] So that's a thousand negative minutes and they go up from there.
[04:33] And you can see the price points.
[04:34] This would be the monthly price understanding of pricing.
[04:37] So one day it would be $60 a month.
[04:40] And then over here on service terms,
[04:42] you can see that it pretty friendly in terms of that as well.
[04:45] There would be data gaps, which are important to become
[04:48] more common, no contracts in pricing.
[04:51] It's like that.
[04:53] The other option, though, is there is something
[04:55] called ACC, which is the affordable connectivity program.
[04:59] That exists right now.
[05:00] It's federal government funding.
[05:02] We think it's going to last about three or four years.
[05:04] It's funded about $14 billion.
[05:07] And it's for income and knowledgeable households
[05:09] you receive a $30 discount.
[05:11] That's paid by federal government each month until that program runs out.
[05:15] So for those homes that qualify, that's a significant savings as well.
[05:21] And that's, I think, the politicians are not that rigid.
[05:25] I think that we're looking about a third of homes
[05:27] possibly called upon with us.
[05:30] So next up is technology and the deal is going to look through that piece.
[05:33] OK.
[05:33] Stay it.
[05:35] So my area of responsibility to firm our technology
[05:38] and engineering design.
[05:41] And so a big part of the piece of release that is the capital,
[05:44] but because it costs a lot to build these systems, especially
[05:48] when you're dealing with outside planning and disruption.
[05:51] And so what I want to go through here is the cost of the system
[05:55] to really depend on the technology that you choose to deploy it.
[06:00] that would be recommended, and then how much is going to cost a bill that is based on
[06:04] the outside plant characteristics of your city, and how the electric is run via over
[06:09] at 100 grams.
[06:11] So the first thing I want to do is just quickly go through kind of the reference architecture
[06:16] to building blocks and the technology.
[06:17] In the basic sense, we are recommending the fiber to the home system, fiber to the premise,
[06:24] so it's fiber off, fiber all the way to the house.
[06:29] So inside the house, you have an optimal network terminal that would convert the optical signal
[06:34] to all the standard air bases for your internet connection, for your phone, and that
[06:41] for TV would be your over the top type applications like that, like circuit, or anything.
[06:48] And then everything upstream from that would go over all fiber.
[06:53] The big pieces, the big building blocks, at least at the neighborhood level, would be the
[06:57] fiber distribution hub, or this cabinet, which is about the size of the small refrigerator.
[07:04] And that's one of those either on the ground or on a pole for about $250 homes, and then those
[07:11] are connected in the city throughout the theater network, back to a single equipment site, which
[07:20] would probably be over by the highway, and maybe it would look like something like a hut,
[07:27] it would be the base of a cell tower.
[07:29] And that's where all of the equipment that is going to be that collects all the information coming
[07:35] from the homes, the explore cabinets, it's going to combine all that traffic and send it to the
[07:41] outside world.
[07:42] You like to say the routers and switches that are in the site, and then you're going to connect
[07:47] to the outside world, the Oklahoma City, Denver, LA, Chicago, over national internet connections.
[07:57] So the big thing for your studies was how much is it going to cost a build this and what kind of
[08:02] capital budget and funding is going to be required to do it.
[08:06] So the way we do that is we take sample areas or neighborhoods within your city that represent
[08:12] the overall city and the characteristics of mainly from the overhead construction and underground
[08:19] construction.
[08:20] You don't have a lot of underground, thankfully.
[08:22] So we pick the one subdivision that is underground and then we pick a couple areas over here that
[08:28] represents the overhead network.
[08:32] For the burnwood subdivision, we would follow all the electric easements typically in the back yard,
[08:39] and in that easement, we would be brand-branded conduit, cable would be pulled through that conduit,
[08:45] and the cable would come up into pedestals every so often where you would be teed off and go to homes.
[08:52] The key takeaway here that both from the underground and the overhead is that the system is built out to curb.
[09:00] or to the back yard, and the services are not running to a house until someone signs up for service.
[09:06] So that's why we call them Hassings.
[09:09] We go past the house.
[09:11] We don't serve the house until someone signs up.
[09:15] So this is the tent down in the Northwest Air Service area.
[09:19] I think over there.
[09:22] And this is all areas.
[09:24] All pools are the alleys.
[09:26] We're following the primary electric service.
[09:30] And this five-list meeting office is on the street here.
[09:37] Most likely on a pole.
[09:39] High density.
[09:40] And a lot more economic, both in terms of cost to cost for foot to build.
[09:46] And the density of all.
[09:48] And so if I go back to here,
[09:51] the cost for passing is close to $4,000.
[09:54] It's in the underground area.
[09:56] And the cost for passing here is less than $4.
[10:00] Very dollars.
[10:01] Which is good.
[10:02] And the last thing we want to do is do a high-level prospective kind of heater or backbone system.
[10:09] A very high count fiber that's going to circle the city.
[10:14] And hit the north of the south ends of the city.
[10:17] So that we can have the capacity to bring traffic back from those neighborhood cabinets.
[10:22] And the cost for this is around $76 for passing.
[10:25] So fraction of what a costability distribution network.
[10:29] The last step on the big capital budget task is to apply the allocation or the weighty based on the type of
[10:39] construction involved in each sample design area.
[10:42] By our estimates, you're 90% over that and 2% underground.
[10:46] And as far as your outside plank here, it's in the city.
[10:50] And when you apply these loadings to the cost for passing for sample design,
[10:56] we come up to $500,000 per whole the business pass.
[11:00] At 100% calculation.
[11:04] And that is what they will use to run financials and grow for money.
[11:13] All right.
[11:14] So let's look at business structures.
[11:16] And there are potentially a range of business structures here.
[11:19] And I think in your case, the two most interesting are to own an outbreak, as we call it,
[11:24] like SLSI guys.
[11:26] Some entities are chosen to have someone else coming in the home part of the network,
[11:31] or for the operator to have you.
[11:33] But here we look at, we look at going an outbreak.
[11:36] And then the variation of that, which is becoming popular number of our clients have looked at as well.
[11:41] Where at least initially, during the early years where you're building revenue,
[11:45] and into subscribers, it's still growing.
[11:47] Offloading some of the staffing costs on to an operating partner.
[11:52] No, no exchange in ownership.
[11:54] We think that nature puts just rather savings in the initial upfront staffing.
[12:00] And then you need to build that expertise to an entity that's already doing this.
[12:05] And in your case, that obvious opportunity is not used to that.
[12:09] We did talk to them about this and it was a model that they are interested in.
[12:14] We didn't go any further than that because we needed to really point a course to determine if that's something you want to pursue further.
[12:20] And that's one of our best recommendations if you are interested.
[12:24] So we looked at that part as well. So we've got two models that we're going to explore.
[12:28] The idea would be to focus here on the point where we select good deal.
[12:33] And again, it's focusing on the initial step and expertise.
[12:37] So that would be really three things, customer operations, so to help desk, call center,
[12:42] most people that help our customers sign up for service.
[12:45] Network administration.
[12:47] So that would be kind of the type of part of running an ISP,
[12:50] and managing the servers, the developers, doing configuration,
[12:55] and then it's being a panel of navigation.
[12:59] So that's what it means.
[13:00] It's the most talking about, you know, city, or the home city.
[13:03] Every family, you know, that's something that you offer here and that you've got to do for that capacity.
[13:08] And you get out of there, you are trapped it with neighbors,
[13:11] and they can provide that service for you.
[13:13] Probably a little bit more cost effective, but as you can do on your own.
[13:17] So I won't go into all the other details here.
[13:20] The idea here would be that we'll be a partner compensation.
[13:23] That would be paid as a fixed e-curse subscriber per month.
[13:27] That would be offering a private VC report, taking care of managing that credit business.
[13:32] For tapering, we didn't do a survey.
[13:34] We've done many, many surveys that has something that you could consider in the future.
[13:38] But we need to have a lot of survey data.
[13:41] We have a lot of actual clients that have implemented in the new results.
[13:46] And so in your case, we believe from the value proposition that you do offer
[13:51] compared to what's here today, the new chief of 45% to a free, under residential side.
[13:58] We think that's conservative in real estate.
[14:01] Same on commercial for internet, but a slower take rate due to a prior prevalence of contracts among business customers.
[14:09] And then for voice service, 40%, on the commercial side, but for residential to much lower as you go,
[14:16] where there's a lot of one of the substitution in the home state.
[14:20] In the US as a total, it's about 60% no longer have a government fund.
[14:25] So that's a much lower number, and it continues to go down.
[14:28] And one thing that is we believe growing penetration, so we're pretty concerned in the approach here,
[14:34] that this could be bell-fired in the thought of my research.
[14:37] In terms of funding, these are the force in there that we look at.
[14:42] You're really going to come down to whether or not you can get grant funding.
[14:47] And then, secondly, which business model you go with.
[14:50] So this is everything yourself.
[14:52] And this is the model I just mentioned, which is a part of it.
[14:56] And typically, what you're looking at is a long term bond.
[15:00] And we'll talk about the details there.
[15:02] If you do get cramp funding, the long term bond goes way down.
[15:06] You do still have to provide a 25% match.
[15:09] So it doesn't totally, but it is substantially reduced.
[15:13] And then over here, you've just got a different operating
[15:15] expense structure which we'll talk about in a minute.
[15:17] But really, it's four potential scenarios that you're working on here.
[15:21] And I'll go through each of these, starting with scenario.
[15:26] So with this, revenues you're looking at about 3 million annually
[15:30] as you grow in that capacity.
[15:32] But the vast majority is this purple gear, which is residential gear,
[15:35] and that's as expected.
[15:37] And you can see some of the assumptions that we used in operating expense.
[15:45] But vast majority is in larger, stacking expense.
[15:49] And that's why you'd like to look at that model with an operating partner
[15:52] to offer some of that initial help from a cost.
[15:55] But that is going to be the majority of their expenses.
[15:58] You do are paying for that bandwidth, because I mentioned here,
[16:02] and some of the vehicle maintenance vendor maintenance,
[16:05] but it's really all about step.
[16:07] So the context, the most number, I think, is 430 of the premise,
[16:13] or 530, that adds up to 9 million to build this network into the context.
[16:21] And you can see how it works out.
[16:23] Most of its network construction related articles,
[16:26] electronics, et cetera.
[16:28] These are fiber motors.
[16:30] We have contract installs.
[16:32] So all the various piece parts of the vehicles come into play,
[16:35] or the 9 million dollar total capital of the budget network.
[16:40] So we'll go into the financial fees of the networks,
[16:43] and look at all four of those scenarios.
[16:45] Before we do that, just a couple of comments here.
[16:48] I'm going to be looking at you really.
[16:50] I want to focus on 2 and 9 and 3 here.
[16:53] One is the net pay factor.
[16:56] It's so, what's the duration of time when you expect
[16:59] until the project pays back on the initial investment?
[17:02] We like to see 20 years or less, and that's a little bit subjective,
[17:06] but when you get the on that period of time,
[17:08] it's just going to include more risks.
[17:10] So that's our goal and we like to see.
[17:13] Third one, you can more important.
[17:15] There will be no secondary financing after the actual financing.
[17:19] What you don't want to have happen to get this investment system like this,
[17:22] and have it not be cashable cause, but not be covered in the investment system,
[17:26] and you're having to support a contribution to the general fund or something
[17:30] in that nature.
[17:31] So you really want to do the initial financing.
[17:34] You have that set in place, and then you don't need to add any financial support
[17:38] to do that time.
[17:41] Okay.
[17:42] We'll also talk about sensitivity analysis, and then we'll go through that now.
[17:46] Okay.
[17:47] So, in scenario one, this is what cashable after debt service looks like.
[17:51] And that debt service is going to be covered in two things.
[17:54] One is going to be a long term bond.
[17:56] So you're going to have principal interest payments on that.
[18:00] You can see those here. Red is the interest. Green is principle. You do have some working capital loans.
[18:07] Well, you're being secondary. Shoulder term financing is going to come in the initial operating losses.
[18:13] Typically, you don't even need those in the long term bond.
[18:16] And what you can see here on the yellow white line is that we're catch real positive.
[18:21] Starting your four and then you're being positive throughout the duration of the study.
[18:27] And you see some dips here. That's where there's some reinvestment capital.
[18:30] If you're 10, there's a network investment refresh.
[18:34] And you've got some other dips where vehicles are getting replaced.
[18:38] Netcash is the total amount. So this is that payback curve that we'd like to look at.
[18:43] That's the orange line here. You can see you go netcash positive in your 13.
[18:48] So in terms of the cases that we typically see this is very strong.
[18:53] And we do have a basis that we do get asked this all this much right.
[18:56] From we have cases where our recommendations and it's just too much risk in the financial outcomes.
[19:03] That's strong enough. But in your case, that's really the opposite. That's a very strong financial performance.
[19:10] Scenero 2. So now, same thing, but with an operating factor, again, we'll run on.
[19:16] So we went through the lower here. But again, this is the lower with that operating part of the play.
[19:22] And there'll be some partnership terms with the monthly fee.
[19:26] This is what happens to the operating expenses. So it's a fairly significant reduction
[19:32] and then taking on those tasks that we just talked about.
[19:36] So it's something that does, especially in the early years,
[19:39] I hope we're still building that.
[19:42] But it's about 25% of the adoption of the all.
[19:46] And then you can see, in comparing the netcash, this is what we just looked at before,
[19:51] what would the all-enouperate and orange line?
[19:54] And then this, it will be an operating part of assuming a $10 per loan per connection.
[19:59] And that's just a decision because there's no discussion negotiation.
[20:02] That's something that would come down the road if you're interested in that.
[20:06] But if we take that numbers and example, you can see the improvement in the cash outcomes.
[20:12] Scenero 3.4, you would be bald. Let's call it feed or more.
[20:18] This is the new infrastructure app from the November of last year, $42 billion.
[20:22] It's been allocated by Congress for a broadband infrastructure investment.
[20:27] The key question is where will this be eligible?
[20:30] The rules of the program will ultimately determine by your state broadband and community or office.
[20:37] But the idea is that it targets uncertainty under certain areas.
[20:42] Our opinion given once you're here today with Sparklight is that you probably won't be deemed underserved.
[20:50] But again, the state broadband office can make that determination.
[20:54] There will be few complaints now, so this has yet to be a finalized type of thing.
[21:00] So you don't know for sure, but I think that, you know, probably for now the best to see that you may not be current eligible in my end for that problem.
[21:10] But we looked at it anyway, so it's in the following two here.
[21:13] That's in your number three and over here it's in your number four.
[21:17] As you can see, that long term bond bond goes down substantially because you get a current, or it won't be multi-synthetic.
[21:25] Now, what we looked at here, this is that project, even so the net feedback here.
[21:30] I saw that was 13 years in C1 and R1.
[21:33] This would be the net cash balance in your 20, maybe 20, so because you're going to not pay that positive before you're 20 by the time you take your 20, you accumulate a positive balance.
[21:46] Now, it's interesting to me, it is that, well, the grant funding scenarios are better, but it's not a huge difference.
[21:54] So, as we look at this, we see, you know, an outcome where whether you get grant funding, not the store looks very financial and peaceful.
[22:02] It would obviously be nice, but it's certainly not a requirement in terms of any of these things for project.
[22:08] Last thing before we go to conclusions is looking at sensitivity.
[22:12] We like to look at what you go wrong and see how strong a robust portfolio is to see any of the events that you were expecting.
[22:21] Typically, when you're looking at this far as the main things were things go all right, it would be not maintaining a certain price for me.
[22:30] We need a sum of $60.
[22:32] Construction costs were over 1,000, and I won't be compensated, or not selling enough, and not even more to break the most expected.
[22:42] So, where, and then, with each of these three, I evaluate, financially, at what point you, you are no longer the financial level.
[22:52] So, with the three, for Interempt Price, you'd have to drop from $60 to $45.
[22:58] With construction cost, you have to almost double from $30,000 to $1,000.
[23:04] And then with the tape rate, you'd have to go down to 40%.
[23:08] And so, you know, pretty substantial.
[23:11] The tape rate was a little less so, the tape rate was important.
[23:14] I do believe that with a value of $60 per year, and that 45% is very minimal.
[23:21] So, this looks good as well.
[23:23] So, conclusions.
[23:25] Last mouth build out, of course, a nine-millimeter capital.
[23:28] There are other costs for operating expenses, et cetera.
[23:31] So, we would suggest a long-term bond of $9.6 million per year for him.
[23:37] But, contingency, working capital, and going to $1.4 million, including $200,000, $200,000,
[23:42] so, total production, investment in $5 million.
[23:46] Both models are like financial fiber.
[23:51] And then the project looks viable, whether or not there is great financial support.
[23:55] And then, as we just looked at, you know, if it's sensitive, even then.
[24:00] as well. And so, last slide, potential next steps, residential market research. You could
[24:08] look at, you could throw in the tape rate assumption that you made. The R thing you could
[24:11] do is you could look at prices in the, you could test, you know, $70 a month for a year, versus
[24:16] 60, that's something we've done before. So look at, you know, price last year, it's the
[24:21] up demand. And then it could help with documentation for interpretations as well. I would
[24:27] be monitoring the state of broadband office right now in terms of their developments. They
[24:32] all plan back to the feds in the price of the June. So this is something that's happening
[24:37] in the home. Possibly machine negotiations look more at least if that's a big risk. And
[24:42] then typically, the clients that they've received, bringing the financial, as you can. Any questions
[24:48] I can do this?
[24:51] I think the price points that they're using for a gig, which is, isn't that awfully competitive?
[25:00] Oh, yeah, very. Yeah, plus it's unlimited. And SparkX limited, so you go over, and they're
[25:10] going to take all of that bill. So, and ATT did an offer that speak. So, I'd say extremely competitive.
[25:18] And in fact, I think the take rate of 45 would be a little low with where our competitors are right now.
[25:25] Yeah, we have one more call of that. I do this bill. They will go to Hongkast. They have the offer of $50, but they're
[25:34] there's a great support that you buy for some of them. And that's Hongkast.
[25:41] And that partner, if we chose to use them has a great reputation, that product I've already got in the areas.
[25:55] So, if we ran this on our own, then we would have to hire people to maintain it, right? Because fiber is not just something you need to show up, the street can do it.
[26:04] Correct. You know, the model they talked about is credit, because we have a potential partner here.
[26:09] So, we would need to look at scenario two, which is working with a partner.
[26:13] Yeah, they could help us either figure, you know, give us time to get ramped up with a resource and staffing.
[26:19] And then at some point, we say, you know, we'll take it over.
[26:23] It's going to be tough for us to ever take it over to be honest, because finding qualified people that they don't already have with our partner is going to be tough.
[26:35] Find enough to demand basically another group when they could do it for us.
[26:40] I think if we get the price point right, we'd be crazy not to just stay with some, and let them handle that part.
[26:46] You talked about the main feeder being somewhere out by a highway.
[26:50] It happens if there's a catastrophe in a major wreck takes that feeder out to hold towns down until it's fixed.
[26:57] Call it over time.
[27:00] It would be a concrete hut, not to hold the way those.
[27:12] I mean, so I'm glad you said concrete because earlier it was just a hut in my notes.
[27:17] I'm envisioning a shed you'd buy at most, right?
[27:21] Why ask?
[27:24] There's the phrase, yeah.
[27:26] And there will be two routes.
[27:28] I think we use, it's in the board, I'm going to Oklahoma City
[27:32] and then go to Kansas City for them.
[27:35] So you've got, you've got $2.00.
[27:37] $2.00, just for a city, you want $3.00.
[27:39] So thank you.
[27:40] So it would be a rain, the rain would rub on one side of the pipe around.
[27:44] So you would, you'd have to break it on both sides for somebody to be out.
[27:47] Correct?
[27:48] Yes.
[27:49] So it's typical.
[27:50] The time is our lecture.
[27:51] Thank you.
[27:52] Thanks for your time.
[27:53] Thank you.
[28:01] Thank you.
[28:02] Appreciate it.
[28:06] It's nine.
[28:07] It's nine.
[28:08] And I agree with my of a trial of Oklahoma for utility repayment.
[28:11] So this is something that's really, no, come on up, Tyler.
[28:16] You can go up there.
[28:17] Tyler, I'm going to talk a little bit about this.
[28:19] But obviously, this is something that we're really excited to be able to
[28:23] present tonight in front of the council.
[28:26] But my of a tribe has offered to make an advanced payment towards
[28:31] their utilities in the amount of $1.7 million to offset the cost,
[28:37] the PCAX storm cost that the city owes to GRDA for storm
[28:43] year.
[28:45] Now, to be clear, this does not mean that we don't have to recoup that
[28:50] cost from our citizens.
[28:52] But instead of using our funds, our capital improvement funds,
[28:57] delaying projects or using our rainy day funds,
[29:00] it'll allow us to use this cash from the tribe to make that
[29:05] payment, and then gives us time to recoup that through our PCAX.
[29:11] Fees on our bills.
[29:13] This is pretty tremendous because this comes with no penalties and no
[29:17] interest to the city.
[29:19] And again, it allows the city to continue using its funds
[29:23] or cash for capital improvement projects.
[29:26] So this is a tremendous partnership with the tribe.
[29:30] I miss anything in their time.
[29:33] Okay.
[29:34] Tyler's up there in case you ask,
[29:35] can we go back and revisit some of the details?
[29:38] Tell us some of the capital improvement that this will allow us
[29:42] to continue to fund.
[29:46] So they should like the electric heater crossing that are off for a bit of
[29:51] ground down on the 25.
[29:54] And then we're trying to make those a lot more flood resilient.
[30:00] You know those both do you spend a lot of water and a lot of time in water or a place in a feeder that goes back to
[30:08] Operations and end up to that area. Let me have
[30:11] Get it 23 really been doing a lot of work on we're buying the properties to have an alley
[30:16] which would be nice because we got to do sewer work back there too
[30:19] and to electric improvements
[30:22] So
[30:23] you can be taken from the general fund on the side of the city side that you need to have some street projects that would be
[30:31] So again
[30:34] There would be street project delays repairs. Yes, very true
[30:42] So this this is pretty amazing
[30:45] With the tribe stepping up and making it offer like this to the city and to the citizens and quite frankly
[30:51] They did it in the spirit of they just wanted to do something to positively impact the citizens of this town a community
[30:58] But you know once again, it further highlights the incredible collaborative spirit
[31:03] Partnership in this community. It's just amazing
[31:06] So we say advanced payment. They're basically paying their electric bill at
[31:11] $1.7 million until that funding runs out and then they start paying their electric bill. They're just pre-paying 1.7 million and it'll take
[31:20] $1.7 million. I was just saying for clarity. Yes
[31:26] But again, I mean one of the things we were concerned about was any confusion that if the tribe makes this payment and we no longer have to
[31:34] Recruit this from citizens, but that's not the case that ultimately we have to page your area and the tribe will ultimately get their
[31:43] Payment back so we still have to recoup the 1.7 million that the city owes
[31:49] Yeah, so again, just to clarify a prayer by this is to keep the city from delaying any capital and improvement projects
[31:58] Which is some electric
[32:01] Electric the
[32:02] Collar of mentioned plus street
[32:05] Project
[32:07] Because we know it's important to keep those street projects on
[32:11] On schedule so the mama tribe did that's really helped us out and it makes that certainly as Tyler was talking about
[32:17] Maintaining your infrastructure which is critical at any time you kick that can now the road
[32:23] It's just you're gonna pay for a later in aging infrastructure and failures and outages and things of that nature
[32:29] Once again, we find out how lucky we are in Ottawa County, Oklahoma
[32:36] To have one of our tribal partners step up and help us in the time of need and they do it over and over and we appreciate all of our tribal partners
[32:46] First of all you have to help in us and we need it. Amen to that. Any other questions?
[32:55] Second. Oh
[33:00] I'm sorry.
[33:01] I'm gonna hurt you.
[33:02] I'm gonna hurt you.
[33:03] I'm gonna hurt you.
[33:04] I'm gonna hurt you.
[33:05] He's gonna say second one.
[33:06] He did.
[33:07] Then something that I'll believe he can come back and I'll put me back in a second.
[33:17] Now are you gonna make a motion?
[33:18] I'll make it.
[33:19] All right.
[33:20] All right.
[33:21] Thank you.
[33:22] Thank you.
[33:23] Thank you.
[33:24] Ting.
[33:25] I'm Crawford and Associates Engagement Letter for Accounting Services.
[33:26] Thank you.
[33:27] Thank you.
[33:28] Ting.
[33:30] Ting.
[33:31] Crawford and Associates Engagement Letter for Accounting Services.
[33:33] And this week, we are 22 and 23.
[33:36] My is a Letter Engagement Department of Associates.
[33:40] We have used them for approximately the last 11 years.
[33:43] They help.
[33:44] What we now is they help prepare as our financial statements for the last.
[33:49] That's the main thing they do.
[33:50] We also use them as a consultant and as needed places.
[33:55] And over the last.
[33:56] We're back and looking at our history of how expenditures and over the last five years.
[34:01] We have spent anywhere from 43,000 to 42,000.
[34:06] Okay.
[34:10] This is the same group.
[34:11] We saw all.
[34:12] Me and your two go.
[34:13] Yeah.
[34:30] He changes in this contract from last year.
[34:32] Motion to approve.
[34:51] Take it.
[34:53] Davis.
[34:55] All right.
[34:56] Clever.
[34:57] Thank you.
[34:58] All right.
[34:59] He steps.
[35:00] All right.
[35:03] Don't you stay imagine.
[35:04] Number 11.
[35:05] And your well state bank contract process.
[35:08] You tell the payments for the city of mile.
[35:10] So the next two agenda items are contracts with two banks.
[35:14] They have been.
[35:15] They both have been taking utility payments for us at zero cost for the last seven years.
[35:20] And I think it's a very relationship with them.
[35:23] They do an excellent job.
[35:25] It gives.
[35:26] It gives our customers four drive through locations.
[35:30] It also allows us to.
[35:32] Then to pay after hours and on Saturdays.
[35:35] And then they can use their credit or credit card.
[35:39] Same contract.
[35:40] Just change dates.
[35:42] I'll make a person to approve 11.
[35:45] Second.
[35:46] Parker.
[35:48] Hi.
[35:49] He step.
[35:50] Hi.
[35:51] Hi.
[35:52] Davis.
[35:53] Sunder.
[35:54] 12.
[35:55] First national bank contract process.
[35:57] Still the balance for the city of mile.
[36:00] So the same thing she did say.
[36:04] Most cheaper.
[36:07] Second.
[36:08] These steps.
[36:10] Simple.
[36:11] High.
[36:12] Davis.
[36:13] Thunder.
[36:14] High.
[36:15] Parker.
[36:18] Senior management group requests to wave sewer and late fee charges do the sprinkler system
[36:23] failure.
[36:24] Yes.
[36:25] So the reason these two items are on the agenda today is they are unique situations that
[36:30] happen to occur in the same months regarding weeks for our customers.
[36:34] Currently the ordinance states that if a customer has a leak, we can adjust 50% of the
[36:39] water and 50% of the sewer for any usage that is over the normally monthly average.
[36:45] And that is one time per location.
[36:47] Any adjustments other than that must be made upon written application and hearing
[36:51] by the industry.
[36:52] So that is why we are here.
[36:54] The senior management group located a red dinner partner had a pipe for each and
[36:59] their sprinkler system in the attic.
[37:01] This resulted in their water consumption on their March bill for 791,000 gallons of water.
[37:08] And there you until the bill was over 13,000 dollars.
[37:11] We did make the adjustment of 50% of the water and 50% of the sewer.
[37:16] However, with this being a leak in the sprinkler system, we can confidently say that never went through
[37:21] the sewer.
[37:22] We didn't have to treat that water.
[37:23] So therefore they are resting that we waved the total sewer portion on that bill.
[37:29] That would be an additional $3,885 in that is the head of the sewer in our room.
[37:38] Or water never went through our sewer.
[37:41] But you already adjusted some of the water off of there also.
[37:44] We did adjust 50% of the water and 50% of the sewer occurred more than in C.S.
[37:48] And that is any customer that has a leak that is hurt more than that.
[37:52] So we are a lot to that one time.
[37:56] With a permanent plumber bill.
[37:58] So this was kind of unique.
[37:59] We got the community development because it was a sprinkler system.
[38:03] A licensed plumber can't make that up here.
[38:05] So they had to have their special group come in and fix it.
[38:08] Now we did have a licensed plumber go out and inspect and they did do the permit for the inspection.
[38:13] I guess I'm just curious to how that end realized.
[38:24] Who is in the attic was it not coming into the building?
[38:27] To be honest, I'm not a hundred percent sure I was not involved when I thought it was detected from my understanding that there was water coming out of the building once it was noticed.
[38:37] It was a lot of water.
[38:38] It was a lot of water.
[38:39] Some sprinkler systems have a lot of water.
[38:42] There's a jocky pump.
[38:44] It's a lot of water.
[38:46] That's three for us.
[38:49] That's the big pool.
[38:52] The water's hurting to me.
[38:53] Yeah.
[38:54] That's pretty good, Lee.
[38:56] And I was also educated today that it's the moon.
[39:00] a lot of these sprinkler systems don't even need or there's happens to be one.
[39:05] He has seen it's always same tap or not quite sure but it's kind of interesting information.
[39:11] So, do we normally adjust off-fix on the water?
[39:14] We do. That is for all weeks and that is perverance.
[39:17] As long as they have a license plumber come out, fix the lead.
[39:22] We do the inspection and confirm the lead has been repaired and we will do that.
[39:26] And that is a one-time per property.
[39:28] So, if they were to have another week, we were not to this.
[39:34] So, by ordinance, they've done what they could do so you're asking us to do more than what the ordinance says we can do.
[39:41] Is that right?
[39:43] That's pretty clear.
[39:45] I'd say this is one that they've been working very closely with Callie and the team doing everything right.
[39:52] Because it's a life safety system, what fire system.
[39:57] It's cutting unique and it's not a plumber.
[40:00] You also are a little hesitant to just shut off of fire suppression system and leave it uncharged.
[40:07] And so, we've all actually probably learned quite a bit about this.
[40:10] As we've talked about it, as a group learning more about not only the ordinance, but the fire safety aspect.
[40:18] So, what's going to keep?
[40:22] If I say we do this, then what's going to keep every other person to come around and go, hey, I want this too.
[40:29] You gave it to this person now.
[40:31] I want you to be fair.
[40:32] I agree with that with it being a fire sprinkler system.
[40:36] I mean, did water go through the different?
[40:40] I mean, we're charging them for a cost that we did not provide to them.
[40:44] They already knocked off the cost of the water that they've done.
[40:47] They're building the correct hardware.
[40:49] They're a good cost.
[40:51] Right.
[40:53] So, what we're asking for in addition to the above and the order is waving the rest of the solar
[40:59] since we know it did not have any cost in treating that anyway.
[41:04] This happened one time of a day.
[41:09] And they didn't realize that they did not realize they had that much water coming out of the ceiling.
[41:16] So, realizing that those lines are designed for maximum volume output.
[41:21] So, it's very likely this could have happened in the day of the day of the day of the night or something
[41:28] of that nature in a part of the building that was able to exhaust the water outside and nobody saw it.
[41:34] So, I know a little bit more about this one.
[41:37] Is that called you on this one?
[41:38] This one?
[41:39] This one?
[41:40] That was a different leaf.
[41:41] Is it the same place though?
[41:44] That one?
[41:45] That one?
[41:46] That one?
[41:47] Okay.
[41:48] But it wasn't a leaf I called you that.
[41:49] Robert, you guys expect those once a year?
[41:51] We don't.
[41:52] We just like your green hat.
[41:54] Okay.
[41:55] Bring nurses.
[41:56] There's a special solution.
[41:59] Comes in.
[42:00] I'm going to test this system annually.
[42:04] That's, I think, the rebuilding of the sprinkler connection
[42:07] is on veterans and it's about halfway down the building.
[42:13] And it's on the outside.
[42:15] So most of the action in that building is a front and west side.
[42:23] So this building have a Jacque-Pompany rubber to do it.
[42:26] It doesn't want to do it.
[42:29] Now, if it, and that's why most of them are made here, is because it has to be the minimum
[42:35] to respond to it.
[42:36] And then you can't just see the possibility of the hospital that's on.
[42:39] Sure.
[42:40] I want to add a little bit of a little bit of a little bit of a little bit of a little bit of a little bit of a little bit.
[42:45] Thank you.
[42:46] Thank you.
[42:47] Thank you.
[42:48] Thank you.
[42:49] Thank you.
[42:50] Thank you.
[42:51] Okay.
[42:52] The system.
[42:53] Yeah.
[42:54] The system.
[42:55] Okay.
[42:56] So what's your recommendation?
[43:05] Your recommendation is to do this.
[43:07] So it's a German recommendation.
[43:16] What's going to happen when somebody comes to you and says, you did this.
[43:20] You did this.
[43:21] And they're fired in a floor system.
[43:22] And it registers the same amount.
[43:24] If it's meter, let's say we have another year, one that I would probably not do this.
[43:28] Okay.
[43:30] Keep it in mind.
[43:31] Most of them are not meter.
[43:32] And most of them are left with a link.
[43:33] Would not have a register on their bill.
[43:35] Because meter in restricts the flow.
[43:38] So we're not sure why this was even meter.
[43:43] But it would have had to pass the inspection.
[43:45] So it's got enough volume going through that it's.
[43:48] How many meter ones will you have, Robert?
[43:50] That's all we want to know where I am.
[43:54] I'm not saying there's not one more.
[43:56] But most of them are because of water.
[43:59] Water is alive here.
[44:00] And then we get the volume.
[44:02] Can't.
[44:07] So it's been our best interest to remove the meter from this.
[44:22] Can that be done?
[44:24] Can you go to other's training where I call it a million?
[44:31] Because first we put water in it.
[44:34] They get manufactured on you.
[44:38] Because you know there's a factor of some of our towers are dropping.
[44:42] We can't figure out a lot of the same things.
[44:44] That's the look.
[44:45] We see the front door.
[44:47] What is that?
[44:48] What does that have to do with this one?
[44:49] The only thing.
[44:50] We don't get the money back for that.
[44:52] So you're saying, leave a meter.
[44:57] You want them all meter?
[45:00] How do you like my personal opinion?
[45:03] I have part of my personal inspection.
[45:05] If you look, if you look at it.
[45:07] I mean, I mean, I mean, this is the, you know, in plus years.
[45:10] I mean, we went through this on solid waste.
[45:12] I mean, I don't know.
[45:13] I mean, I don't know.
[45:14] It's a reality that wants you to come to the door that people start coming through.
[45:18] That's the hard part of being a counselor.
[45:28] I like the idea.
[45:29] You can call it midnight.
[45:31] Most of them do prove.
[45:43] I'll second it.
[45:46] Davis.
[45:48] All right.
[45:49] Estep.
[45:50] All right.
[45:51] Double.
[45:52] Nate.
[45:54] Zenberg.
[45:56] Nate.
[45:57] Parker.
[45:58] Parker.
[45:59] I'm going to go, uh, I'm going to go, uh, one time.
[46:08] Now we got another way.
[46:10] No.
[46:12] No.
[46:15] This was a little bit, um, special unique situation pertaining to leak.
[46:18] Mr. Martin.
[46:19] Um, he had two water leaks that were detected at his property on 325.
[46:23] By Miller plumbing.
[46:25] Um, one of the leaks was at the neck of the water meter.
[46:27] And one was closer to his home.
[46:29] Um, during the process of fixing the leaks.
[46:31] It was noted and confirmed.
[46:33] Um, with utility department that the was worked done by a contractor.
[46:38] Um, on the city's main water line, directly above Mr. Martin's line.
[46:42] This may have contributed and were caused one or both of the leaks.
[46:47] Um, at his usage.
[46:49] So the work that they did, the contractor, they started that in November.
[46:53] That is when we started seeing an increase in use at Mr. Martin's property.
[46:57] Um, you went from 13,000 gallons in November.
[47:00] 15,000 December.
[47:02] 21 January.
[47:03] Until February.
[47:04] He registered 104,000 gallons.
[47:07] Um, when the, when the plumber went there.
[47:11] They told us that it looked like he had caused, or the contractor.
[47:14] The work that they've done could have possibly caused the damage at his property.
[47:18] And I did speak with Chris Stevens.
[47:20] We cannot confirm or deny that the work that the contractor did did cause the problem.
[47:27] Um, we have not made any adjustments to Mr. Martin's account as of yet.
[47:32] Um, we, and of course, pertinent.
[47:39] We can adjust if the person at the water and 50% of the sewer.
[47:43] But due to the unique circumstance and the work that the contractor did potentially causing the problem.
[47:49] We would recommend to adjust if you are the sewer of the amount above his 8,000 gallon use on average per month.
[47:58] Um, so.
[48:00] So what we could do currently court ordinance with the adjustment of 1,104 dollars, if we
[48:07] were to adjust all of the water above his monthly average, that would be an additional
[48:11] 902 dollars of adjustment.
[48:22] This is the total adjustment would leave a credit balance of $28.99.
[48:27] So he has paid his bill in full since November.
[48:31] So he's already paid this amount.
[48:33] The only bill he has not paid is his bill for federal worry.
[48:37] We did not do any adjustments for November December at work in January.
[48:41] Now that is $5,000 about the average for those months, so therefore we would essentially
[48:47] be crediting him back money that he did pay knowing now that potentially the contract
[48:53] for a coup is what caused that would.
[48:56] So you would essentially leave a credit balance on the $16.99 of $28.99.
[49:07] So the $11.44 dollars done.
[49:09] It has not been completed as it yet, we were waiting until it will be done tomorrow.
[49:17] Are we pondering both?
[49:18] They're just the additional.
[49:19] Yeah, the additional.
[49:20] Okay.
[49:34] Any other questions?
[49:37] I'll make the motion to approve.
[49:41] We've had several issues with this contractor in that same area.
[49:48] So it hasn't been pretty over there, so that's why I make the motion to approve.
[49:55] A second.
[49:57] Hi.
[49:58] Thank you.
[49:59] 15.
[50:00] I don't need business, which is a business that's supposed to be in this agenda.
[50:17] 16, trustee and community announcements.
[50:21] 17 and German.
[50:22] So moved.
[50:23] Second.
[50:24] Hello.
[50:25] Hi.

📄 Full Agenda

NOTICE OF REGULAR MEETING AND AGENDA
OF THE MIAMI SPECIAL UTILITY AUTHORITY (MSUA)
Monday, May 2, 2022
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 Retired Pastor of First Christian Church                                                    Leon Weece
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.
*Action Item* 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 6 through Item 7 be placed on the consent agenda.
6.
*Action Item* Claims                                                                  Trustees
Claims List
7.
*Action Item* Minutes:  April 18, 2022 (Regular)                                                    Trustees
Minutes: April 18, 2022
8.
Presentation of Broad Band Feasibility Study by Uptown Services, LLC                                                    Tyler Cline/Dave Stockton/Neil Shaw
BA
Presentation
9.
*Action Item* Agreement With Miami Tribe of Oklahoma for Utility Prepayment                                              Bo Reese/Tyler Cline
BA
Agreement
10.
*Action Item* Crawford & Associates Engagement Letter for Accounting Services in FY 2022 - 2023                                                Jill Fitzgibbon
BA
Letter of Engagement
11.
*Action Item* Annual Welch State Bank Contract to Process Utility Payments for the City of Miami                                              Jill Fitzgibbon
BA
Agreement
12.
*Action Item* Annual First National Bank Contract to Process Utility Payments for the City of Miami                                                    Jill Fitzgibbon
BA
Agreement
13.
*Potential Action Item* Senior Management Group Request To Waive Sewer and Late Fee Charges Due to Sprinkler System Failure                              Jill Fitzgibbon/Callie Hilburn
BA
15.
*Potential Action Item* 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
14.
*Potential Action Item* Max Martin Request to Waive Water, Sewer, and Late Fee Charges Due to City Contractor Issue                              Jill Fitzgibbon/Callie Hilburn
BA
15.
*Potential Action Item* 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
16.
Trustee Community Announcements                                                                    Trustees
17.
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.