[00:00:03] >> NOW, FROM MCALLEN CITY HALL, A MEETING OF THE MCALLEN PUBLIC UTILITY BOARD. [MUSIC] >> [NOISE] CALL THIS MEETING TO ORDER THE MCALLEN PUBLIC UTILITY BOARD, IF YOU WOULD PLEASE STAND FOR OUR PLEDGE AND OUR INVOCATION. ALLEGIANCE] OUR KIND AND MOST GRACIOUS HEAVENLY FATHER, WE THANK YOU FOR TRAVELING MERCIES PERSONALLY. WE THANK YOU FATHER FOR THE ABILITY TO COME TOGETHER TO DO THE WORK OF THIS UTILITY FOR THE CITIZENS, AND OUR RATE PAYERS. PRAY FATHER, YOU LEAD, GUIDE, AND DIRECT IN EVERYTHING THAT WE DO. MAY WE GLORIFY YOUR NAME IN ACTION AS WELL AS IN PRAYER. WE PRAY THESE THINGS IN YOUR NAME. AMEN. >> AMEN. >> BEFORE WE GET STARTED WITH OUR AGENDA, I'M GOING TO TAKE JUST A [NOISE] MOMENT OR TWO AND EXCUSE MYSELF TO GO OUT. DO THIS FROM HERE, AND I'LL MEET HIM IN OUR FRONT. ONCE AGAIN, THIS UTILITY IS LOSING A VERY HUGE KNOWLEDGE BASE. MAYOR DARLING HAS BEEN FIGHTING WATER ISSUES FOR I DON'T KNOW HOW MANY YEARS. PROBABLY, SINCE YOU WERE [OVERLAPPING] >> MY SECOND MEETING OF THE UTILITY BOARD IN 1978, WE HAD A DISCUSSION ABOUT SERIOUS WATER ISSUES. >> '78 AS AN ATTORNEY. THEN ALL THESE MANY YEARS, I GUESS THE LAST WAS SIX OR EIGHT ON THIS BOARD AS MAYOR. WHICH THOSE OF YOU WHO DON'T KNOW, THE KNOWLEDGE BASE THAT HE HAS AS FAR AS WATER ISSUES IS, I'M GOING TO SAY THERE ARE NONE BETTER IN THE VALLEY, AND CERTAINLY ONLY A FEW BETTER IN THE STATE. WE'VE BEEN VERY FORTUNATE TO HAVE HAD HIS LEADERSHIP, HIS COUNSEL, AS WELL AS FRIENDSHIP. THAT'S WHY THESE KINDS OF THINGS ARE AS DIFFICULT AS THEY OFTEN GET. MAYOR, WE'RE GOING TO MISS YOU. >> THANKS, CHARLES. >> WE WISH YOU THE BEST, AND WE HOPE THAT WE FIND REASONS TO COME TOGETHER IN THE FUTURE. HE MAY BE OFF OF THIS BOARD, BUT MANY OTHERS HE WILL BE CONSIDERED MEMBER EMERITUS. I KNOW THAT HE WON'T BE TOO FAR AWAY BECAUSE I STILL HAVE HIS PHONE NUMBER. >> [LAUGHTER] THANKS, CHARLES. >> ANYWAY, IF YOU WOULD JOIN ME OUT FRONT. >> I WOULD HAVE GET DRESSED UP, I WASN'T EXPECTING THIS. [LAUGHTER] >> YES, SO DID I. I'M SORRY. >> I DO HAVE A TATTOO. [LAUGHTER]. IT'S A SECRET TATTOO. >> A SECRET PASSWORD? >> NO, TATTOO I SAID. THE MPU TATTOO. [LAUGHTER] >> THANK YOU. ON BEHALF OF THE MCALLEN PUBLIC UTILITY BOARD, I PRESENT TO YOU THIS GAVEL. >> THANK YOU. >> DEEM YOU AS AN EX OFFICIO MEMBER. >> EX OFFICIO. THANK YOU, CHARLES. >> THEN [NOISE] FOR THIS TERM AND THIS SERVICE AWARD PRESENTED TO MAYOR JIM E. DARLING, [CALL TO ORDER] IN APPRECIATION FOR YOUR COUNTLESS YEARS OF FAITHFUL, VALUABLE, AND DEDICATED SERVICE TO THE MCALLEN PUBLIC UTILITY BOARD, AND TO THE CITY OF MCALLEN. >> WELL, THANK YOU. WOW, THIS IS VERY NICE. THANK YOU VERY MUCH. >> THANK YOU TOO. [APPLAUSE]. >> THANK YOU AND THANK THE STAFF. FIRST OFF, I WANT TO APOLOGIZE TO STAFF FOR ALL THE QUESTIONS I ASKED DURING MEETINGS. I DON'T MEAN TO PUT PUT YOU ON THE SPOT, [00:05:02] BUT YOU GUYS DO SUCH A GREAT JOB. SOMETIMES YOU INSPIRE ME TO ASK MORE AND GET MORE INFORMATION FOR THINGS, SO I APPRECIATE. ONLY ELECTED UTILITY BOARD FOR STATE OF TEXAS, [PLEDGE] [INVOCATION] ELECTIONS ARE NO FUN. [LAUGHTER] TO BE ELECTED FOR A POSITION IN UTILITY BOARD WHERE IT'S NOT A LOT OF GLORY, [PRESENTATION - MAYOR JAMES E. DARLING (MPUB EX-OFFICIO)] BUT A LOT OF HARD WORK, AND THAT'S WHAT YOU GUYS DO. I APPRECIATE THAT AS A CITIZEN, AS A CUSTOMER, THE UTILITY, AND CERTAINLY SITTING IN THAT CHAIR FOR ABOUT 20 YEARS OF REPRESENTING UTILITY BOARD. I NOT ONLY APPRECIATE WHAT WE DO. SOMETIMES I'M AMAZED AT HOW WELL YOU DO IT, AND YOU ALL GET ALONG. YOU'RE ALL INDEPENDENT, YOU ALL HAVE YOUR OWN IDEAS, BUT YOU ALSO, ALL GIVE MOMENT YOU RESPECT AND ALL THAT. MARK, THANK YOU FOR YOUR LEADERSHIP. I ENJOYED A LOT OF OUR DISCUSSIONS, AND SO I'LL BE AROUND AS A CUSTOMER ALWAYS. [LAUGHTER] I WON'T EVER TELL MY JOKE EVER AGAIN, I PROMISE YOU NOT. I WILL THINK ABOUT YOU, AND OTHER GREAT THINGS YOU DO. THANK YOU VERY MUCH. I APPRECIATE THIS. >> THANK YOU, MAYOR. >> THANK YOU, MAYOR. [APPLAUSE]. >> BACK TO OUR AGENDA. FIRST ITEM ON THE AGENDA IS THE APPROVAL OF THE MINUTES OF THE REGULAR MEETING HELD MAY THE 11TH, 2021, AND A SPECIAL MEETING HELD ON MAY THE 12TH, 2021. >> THE APPROVAL IS PRESENTED. >> I HAVE A MOTION TO APPROVE, DO I HAVE A SECOND? >> SECOND. >> ANY DISCUSSION, ADDITIONS? HEARING NONE. ALL IN FAVOR SAY AYE. >> AYE. >> MOTION PASSES. ITEM 2A, PLEASE. >> ITEM 2A, MR CHAIRMAN, IS CONSIDERATION OF POSSIBLE ACTION FOR APPROVAL OF EMPLOYEE DENTAL PLAN PROVIDER RECOMMENDATION. WE HAVE JOLEE PEREZ HERE, THE DIRECTOR OF OUR HELP AND BENEFITS DEPARTMENT. JOLEE, THANK YOU FOR BEING HERE. >> GOOD AFTERNOON. >> GOOD AFTERNOON. >> AS PART OF OUR EFFORTS TO ENSURE THE ROBUST BENEFITS FOR THE CITY OF MCALLEN AND PUBLIC UTILITY EMPLOYEES, WE DO SOLICIT FOR PROPOSALS, BOTH FORMAL AND INFORMAL. FOR THIS DENTAL CYCLE, WE HAVE A CONTRACT THAT EXPIRES IN SEPTEMBER, AND SO WE DID SOLICIT FOR INFORMAL PROPOSALS. WE WERE VERY PLEASED TO SEE SEVERAL CANDIDATES THAT PROPOSED IN, AND IN YOUR PACKET YOU WILL SEE THE RESULTS OF THOSE. WE DID COMPARE PLAN DESIGNS, PROVIDER DISRUPTION PREMIUMS, TOOK INTO CONSIDERATION PAST EXPERIENCE, AND A COUPLE OF THE BENEFIT CHANGES THAT THEY WERE OFFERING. AS A RESULT, WE DID MAKE A RECOMMENDATION TO RENEW OUR CONTRACT WITH LINCOLN FINANCIAL, WHICH IS OUR CURRENT PROVIDER, FOR A TERM OF TWO YEARS WITH AN OPTION TO RENEW FOR THE THIRD YEAR SHOULD THE RATES CONTINUE TO BE FAVORABLE. THIS RECOMMENDATION WAS FAVORABLY ACCEPTED YESTERDAY BY THE CITY COMMISSION, BUT IT IS CONTINGENT UPON THIS BOARD'S APPROVAL, SO I WILL OPEN IT UP TO ANY QUESTIONS. >> YOUR RECESS RECOMMENDATION MAY HAVE MOTION, PLEASE. >> MOVE FOR APPROVE. >> SECOND. >> MOTION SECOND. ANY DISCUSSION? ANY QUESTIONS? >> I JUST HAVE A QUESTION BECAUSE I'M NEW HERE. YOU'RE THE BENEFITS COORDINATOR? >> YES, THE BENEFITS DIRECTOR, YES. >> NICE TO MEET YOU. >> NICE TO MEET YOU. >> THESE ARE UNDERWRITTEN PLAN FOR THE SELF-INSURED, WHAT ABOUT IT? >> FOR THE DENTAL PLAN, IT IS FULLY INSURED, CORRECT. >> WHATEVER ADMINISTRATION [INAUDIBLE] IS THAT CORRECT? >> CORRECT. WE DO A LOT OF IT IN HOUSE AS FAR AS HELPING ASSIST OUR EMPLOYEES DO A LITTLE BIT MORE HAND-HOLDING THAN A LOT OF OTHER ENTITIES MIGHT. BUT YES, THE TPA DOES MOST OF THE CLAIMS PROCESSING AND SO-FORTH. >> BUT THE TPA FOR THE UNDERWRITER, OR THE TPA THAT YOU USE FOR THE SELF-INSURED PLAN? >> NO, IN THIS CASE, IT WOULD BE LINCOLN FINANCIAL. THEY WOULD HANDLE ALL OF IT, CORRECT. >> INCLUDING CHOOSING WHO THE PROVIDER IS FOR THE PENSION AND THE NETWORK AND ALL THAT? >> THE NETWORKING? CORRECT. >> THANK YOU. >> YES. >> ANY OTHER QUESTIONS? >> I CAN TESTIFY THAT THEY WILL ACT VERY PROMPT. I CAN TESTIFY THEY'RE VERY PROMPT. >> GOOD. >> VERY PROMPT. >> YES. WE ACTUALLY HAVE A LOT OF COMPLIMENTS FROM LINCOLN. IN FACT, I CAN'T RECALL ANY OFFHAND IN THE LAST TWO YEARS COMPLAINTS FROM ANY EMPLOYEES. >> THEY ARE VERY PROMPT. >> ANY OTHER DISCUSSION? THERE ARE NONE, ALL IN FAVOR OF THE ITEMS SAY AYE. >> AYE. >> OPPOSE SAME SIGN. MOTION PASSES. ITEM 2B, PLEASE. >> ITEM 2B, IS CONSIDERATION FOR AUTHORIZATION TO INITIATE DEVELOPMENT OF A WHOLESALE WATER SALES AGREEMENT WITH SHARYLAND WATER SUPPLY CORPORATION. CARLOS. THANK YOU, JOLEE. >> GOOD AFTERNOON BOARD MEMBERS. REASON DEVELOPMENT ACTIVITY WITHIN [00:10:02] THE WATER CCN SURFACE AREA BELONGING TO SHARYLAND WATER SUPPLY CORPORATION HAVE TRIGGERED DISCUSSIONS BETWEEN MPU AND SHARYLAND WATER FOR RECOLLECTION REGARDING POTENTIAL INTERCONNECTIONS. SPECIFICALLY THE AREA OF INTEREST WITH THE MILE 6 ROAD AND WARE ROAD INTERSECTION. SHARYLAND WATER SUPPLY CORPORATION THROUGH THE GENERAL MANAGER HAS FORMALLY REQUESTED [1. MINUTES:] A WHOLESALE WATER SALE AGREEMENT THAT WOULD INVOLVE THE INSTALLATION OF AN INTERCONNECTION AT THAT SPECIFIC LOCATION. MPU CURRENTLY HAS INTERCONNECTIONS WITH MISSION HIDALGO, EDINBURGH, AND CITY PARK. [a) Approval of the Minutes for the Regular Meeting held May 11, 2021 and Special Meeting held May 12, 2021.] SHARYLAND HAS CONCERNS ABOUT THEIR EXISTING WATER INFRASTRUCTURE ALONG THAT CORRIDOR. [2. BIDS AND CONTRACTS:] [a) Consideration and Possible Action for Approval of Employee Dental Plan Provider recommendation.] THEY DO HAVE PLANS TO UPGRADE THAT LINE, BUT THEY ARE LOOKING FORWARD TO COORDINATING THE TIMING OF THE UPGRADE WITH THE WARE ROOM UPGRADE, THE TEXTILES PLANNING DOWN THE ROAD. WHAT THEY'RE LOOKING AT HERE IS POTENTIALLY A TEMPORARY INTERCONNECTION, OR IT COULD BE AN INTERCONNECTION THAT WOULD EVOLVE INTO AN EMERGENCY INTERCONNECTION, AND POSSIBLY A TWO-WAY INTERCONNECTION. WE DO HAVE A 24-INCH WATERLINE ALONG MILE 6 ROAD. WE'VE LOOKED AT IT AND WE THINK THAT IT'S FEASIBLE, TECHNICALLY, TO DO THAT INTERCONNECTION AT THAT LOCATION. STAFF HAS VISITED WITH SHARYLAND ABOUT THE PROSPECT OF LEAVING THE AGREEMENT OPEN TO ALLOW FOR OTHER LOCATIONS FOR INTERCONNECTIONS. IN PARTICULAR, WE'RE LOOKING AT THE AREA NORTH OF [INAUDIBLE] MONTECRISTO THAT COULD BE OF SOME USE FOR US DOWN THE ROAD. WITH THAT IN MIND, STAFF IS ASKING FOR CONSIDERATION FROM BOARD AS TO WHETHER WE GO AHEAD AND MOVE FORWARD WITH COORDINATING WITH THE LEGAL DEPARTMENT AND AS WELL AS SHARYLAND FOLKS TO DEVELOP THIS INNER LOCAL AGREEMENT OR INTERCONNECTION AGREEMENT. THEN THE IDEA IS WE'D COME BACK [BACKGROUND] BEFORE THE BOARD WITH A FINAL DRAFT FOR CONSIDERATION. >> YOU'VE HEARD STATUS RECOMMENDATION, MAY I HAVE MOTION? >> SALUTE. >> SECOND. >> MOTION SECOND, ANY QUESTIONS? [OVERLAPPING] >> WE'RE JUST LOOKING FOR ALIASES TO GO AND NEGOTIATE, RIGHT? THAT'S WHAT YOU WANT TO DO? >> CORRECT. >> THAT WAS MY QUESTION. THIS IS JUST TO PROCEED, OBTAIN A PROPOSAL TO COME BACK BEFORE US, CORRECT? >> THAT'S CORRECT. MR. [INAUDIBLE] , THIS SUBDIVISION PROBABLY CAME IN A FEW MONTHS AGO. IT'S IN A PARTICULAR AREA WHERE IT WOULD BE UNFEASIBLE FOR A DEVELOPER TO CONNECT TO SHARYLAND AND BRING DOWN THE INFRASTRUCTURE TO THIS SUBDIVISION. WE JUST SAW IT AS AN OPPORTUNITY, LIKE CARLOS SAID, WE'RE BASICALLY A REGIONAL WATER PROVIDER WITH HOW MANY CITIES THAT WE SERVE. WE'VE BEEN IN TALKS WITH SHARYLAND WATER SUPPLY FOR THE LAST COUPLE OF YEARS AND HAVE AN INTERCONNECTION WITH THEM. THEY HAD SOME ISSUES WITH HURRICANE HANNAH LAST YEAR, THEY HAD ISSUES WITH THE FREEZE, AND IT WOULD HAVE BEEN BENEFICIAL FOR THEM, MAYBE ONE DAY IT'D BE BENEFICIAL FOR US BECAUSE THIS, IN THE FUTURE, THIS CONNECTION HERE WOULD BE ABLE TO GO BOTH WAYS SHOULD WE EVER NEED IT, AND SO THIS SEEMED LIKE A GOOD OPPORTUNITY. NUMBER 1, FOR THE DEVELOPMENT, TO CONTINUE. NUMBER 2, IT'S WHAT WE DO, [b) Consideration for authorization to initiate Development of a Wholesale Water Sales Agreement with Sharyland WSC.] WE SELL WATER AND IT'D BE A GOOD OPPORTUNITY TO SELL WATER AND HAVE THAT INTERCONNECTION FOR THEM AND FOR US. LIKE CARLOS SAID, WE MAY ENTERTAIN, IN THE FUTURE, ACCM NORTH OF MONTE CRISTO, WHERE WE COULD ALSO DO THE REVERSE HERE AND HAVE A WHOLESALE AGREEMENT UP THERE IN LIEU OF MPU RUNNING A THREE-MILE-LONG TRANSMISSION LINE TO SERVICE THAT AREA FOR A TEMPORARY WATER INFRASTRUCTURE. THAT'S WHY WE WE'RE RECOMMENDING THIS, AT THIS TIME, FOR THIS SUBDIVISION. >> I HAVE A LOT OF QUESTIONS, I DIDN'T MEAN TO STEP ON ANYBODY'S TOES. I CERTAINLY DON'T WANT TO CLOSE THINGS DOWN. THE QUESTIONS ARE MORE GETTING UP TO SPEED, TYPE STUFF. SO MARK, IF AT ANY TIME YOU THINK IT'S MORE APPROPRIATE TO HAVE SOMETHING BEYOND THIS, I'M NOT OPPOSED TO THIS. I'M CURIOUS AS TO WHAT ARE THE INTERCONNECTIONS WE HAVE WITH THE OTHER CITIES THAT ARE LISTED IN THIS MEMO. >> [OVERLAPPING] ABSOLUTELY. ABSOLUTELY. >> [OVERLAPPING] ARE THEY JUST THE EMERGENCY TYPE CONNECTING CONNECTIONS? >> THERE'S ONE EMERGENCY TYPE AND THAT'S THE CITY OF MISSION, AS WELL AS THE CITY OF PHARR. WHOLESALE AGREEMENTS, WE'VE GOT WITH HIDALGO AND CITY OF EDINBURG. SO WE'VE GOT FOUR ACTUAL INTERCONNECTS, [00:15:02] TWO ARE WHOLESALE AGREEMENTS, TWO ARE EMERGENCY CONNECTIONS. >> WHEN YOU SAY THESE, OTHER THAN THE EMERGENCY, ARE THEY BOTH WAYS? OR ARE THEY JUST A ONE-WAY CONNECTIONS? EDINBURG IS BOTH WAYS, HIDALGO IS IN THE PROCESS OF WE'RE ACTUALLY MAKING RECONNECTIONS FROM OUR DICKER ROAD WATERLINE PROJECT. WE'RE GOING TO MAKE SOME NEW CONNECTIONS THERE TO THAT CITY, AND THOSE SHOULD BE BOTH WAYS AS WELL. BUT WE'VE GOT BACKFLOW PREVENTION DEVICES TO KEEP THAT WATER FROM COMING INTO OUR SYSTEM AND VICE VERSA. WE'RE ABLE TO CONTROL THAT FLOW IN WHICHEVER WAY WE WANT TO. BUT I KNOW THE CHAIRMAN AT THE LAST MEETING REQUESTED A WORKSHOP ON PROJECT UPDATES. WE WANTED TO WAIT, OBVIOUSLY, WE'RE GOING TO HAVE PROBABLY A NEW EX-OFFICIAL MEMBER HERE VERY SOON AND WAIT FOR THAT. THAT WAY WE DON'T DO A CONSTRUCTION UPDATE AND THEN HAVE A NEW BOARD MEMBER COME RIGHT IN. WE WANT TO KILL TWO BIRDS WITH ONE STONE, SO WE'LL BE HAVING THAT WORKSHOP REAL SOON, AND THAT WOULD BE A GOOD TOPIC TO INCLUDE IN THAT WORKSHOP. >> WELL, AGAIN, I'M SURE I'M GOING TO HAVE MANY QUESTIONS AS WE GO THROUGHOUT THIS AGENDA AND OTHERS. THEY'RE MORE ON THE LINE OF TRYING TO UNDERSTAND AND GET UP TO SPEED, SO I DON'T WANT TO HOLD ANYBODY BACK IF THEY NEEDED TO CUT ME OFF. [OVERLAPPING] >> THEN ON THE LEGAL TERMS, THIS JUST GIVES US THE APPROVAL TO PROCEED WITH AN AGREEMENT, WHICH WILL OBVIOUSLY GO THROUGH THE LEGAL DEPARTMENT. THEY'LL VET THE WHOLE AGREEMENT, AND SO WE'LL COME BACK AT A LATER TIME WHEN WE EXECUTE THAT. >> [OVERLAPPING] I HAD A QUESTION, IT'S RELATED, AND THE REASON THEY WANT THIS LINE IS BECAUSE OF FIRE PROTECTION. WHAT HAPPENS A LOT OF TIMES, THE CITY COMMISSION DOESN'T SEE ANY OF THESE AGREEMENTS AND IF WE'RE IN ITS ENSHARED AND WATER SUPPLY COOPERATION, WE DEAL WITH THE SEWER, WE DON'T DEAL WITH THE WATER. BUT THEN THE CITY IS EXPECTED TO TAKE OVER FIRE PROTECTION, AT LEAST THE FIRE HYDRANTS, VIA AGREEMENTS. IT COULD BE ALTON OR WHATEVER FIRE DEPARTMENT, FOLLOWING THEIR ZIP CODE, PROVIDES A SERVICE. BUT, I DON'T KNOW IS IF THERE'S COORDINATION WITH THE FIRE DEPARTMENT ON A SHARYLAND LINE. I'VE NEVER HEARD THE FIRE CHIEF EVER MENTION THAT AND THEY COME OUT AND DO THAT. IT'D BE NICE TO KNOW, AND I DON'T THINK IT'S UTILITY'S OBLIGATION, BUT IT SEEMS TO FALL IN CRACKS BECAUSE IT'S NOT THE CITY'S OBLIGATION AND IT'S SHARYLAND AND UTILITY BOARD. UTILITY BOARD OFTEN IS THE ONLY ONE WHO SEES ALL OF THE SUBDIVISIONS. RICK RARELY WOULD SEE A SUBDIVISION UNLESS IT WAS A VARIANCE FOR A PARTICULAR THING AND UTILITY BOARD MUCH MORE INVOLVED IN SUBDIVISION PROCESSES. ANYWAYS, THE CITY COMMISSIONS NOW FOR SOME REASON I THINK BECAUSE WE ANNEXED UP TO 490 IS SEEING MORE AND MORE VARIANCE REQUESTS THAT ARE ALSO UTILITY BOARD. I THINK THEY WANT TO GO INTO A WORKSHOP BY THEMSELVES. I THINK IT WOULD BEHOOVE US TO HAVE A JOINT WORKSHOP AND THAT THE UTILITY BOARD COULD GIVE THE CITY MAYBE AT LEAST SOME GUIDANCE AND VARIANCES, AND HOW THEY HANDLE THEM AND THOSE KIND OF THINGS. OFTENTIMES IT'S ONLY SEPTIC, WHICH IS HOW YOU THE UTILITY BOARD HANDLES IT TOO, I THINK. SO THERE'S SOME BETTER COORDINATION BECAUSE WE'RE REALLY STRUGGLING WITH THAT AND WE'RE SEEING MORE AND MORE PEOPLE SELL OFF TWO-ACRE LOTS OUT AND TELL THEM GO GET A VARIANCE TO PEOPLE. WE'RE SEEING A LOT OF THAT LATELY. SO AT ANY RATE, ALL THIS IS KIND OF TIED INTO WHAT'S GOING ON ESPECIALLY IN OUR ETJ, WHICH IS ALSO IN YOUR CCN AREA. I THINK IT'D BEHOOVE US ALL TO HAVE A MEETING. NOT NECESSARILY ME, BUT HAVE A MEETING IN ALL BE ON THE SAME LEVEL AS IT RELATES TO THAT. RIGHT NOW THE QUESTION IS, WHY SHOULD WE PROVIDE FIRE PROTECTION INTO A SUBDIVISION THAT DOESN'T WANT TO BE ANNEXED, FOR INSTANCE, AND TAKE THAT RESPONSIBILITY BECAUSE SHARYLAND HAS NO RESPONSIBILITY FOR THEIR FIRE HYDRANT, THEN WHO IS RESPONSIBLE FOR IT, FOR INSTANCE. LAST THING I WANTED TO DO IS REMEMBER WE HAD A HOUSE BURNED DOWN, [BACKGROUND] FIRE OF DEPARTMENT WENT OUT THERE AND THERE WAS NO SERVICE TO THAT FIRE HYDRANT, AND WE DON'T WANT TO HAVE THAT EVER HAPPEN AGAIN. [OVERLAPPING] ANYWAYS, I THOUGHT I'D SUGGEST THAT THE CITY COMMISSION'S GOING TO HAVE A WORKSHOP FOR THE NEXT THREE DAYS [NOISE] OR SO. I WOULD RECOMMEND UTILITY BOARD MEETING IN PARTICIPATING THAT WORKSHOP. [OVERLAPPING] >> ABSOLUTELY. >> ONCE AGAIN, THIS DEVELOPMENT IS ACTUALLY INSIDE THE CITY OF MCALLEN, JUST IN SHARYLAND'S SERVICE AREA. [OVERLAPPING] IT WOULD BE ONEROUS FOR THE DEVELOPER TO MAKE THAT CONNECTION COST-WISE AT THIS TIME, TO SHARYLAND, AND WE'RE A BLOCK OR TWO AWAY, [BACKGROUND] ESSENTIALLY. >> [OVERLAPPING] WHEN THEY SAY INTERCONNECTIONS ARE REQUESTED, IS IT THE PERSON WHO REQUESTED IT IS RESPONSIBLE FOR THE PAYMENT OF THE IMPROVEMENT OR Y'ALL DO INTERLOCALS AND SHARE THE COST OR WHAT? [00:20:03] >> NO, THE DEVELOPER USUALLY WILL HAVE TO FUND ALL THE INFRASTRUCTURE, INCLUDING THE INTERCONNECTION. >> INCLUDING THIS ONE? >> YES. >> OKAY. >> THIS IS THE FIRST OPPORTUNITY WE'VE HAD TO HAVE AN INTERCONNECT WITH SHARYLAND WATER SUPPLY? >> FIRST ONE. [OVERLAPPING] >> WHICH I THINK IS CRITICAL WHEN [BACKGROUND] YOU START SEEING THE BIGGER PICTURE OF REGIONALIZATION, TO SOME EXTENT. >> WE LEAPFROG SHARYLAND CCM WITH OUR CCN. SO THE SHOE IS GOING TO BE ON THE OTHER FOOT SOMETIME FOR US. >> EXACTLY. >> SO ONCE AGAIN, THIS TYPE OF AN AGREEMENT IS SOMETHING THAT WE'VE ESSENTIALLY ENCOURAGED TO TRY AND GET TO BEFORE NOW. ANY OTHER COMMENTS? HEARING NONE. ALL IN FAVOR OF THE MOTION SAY AYE. >> AYE. >> OPPOSE SAME SIGN. MOTION PASSES. [NOISE] ITEM 2C, PLEASE. >> ITEM 2C IS CONSIDERATION AND APPROVAL OF SELECTION AND AWARD OF PROFESSIONAL SERVICES CONTRACT FOR ENGINEERING, CONSULTING, AND SERVING SERVICES RELATED TO HIDALGO COUNTY RMA PROJECT. CARLOS. >> STAFFS HAVE BEEN COORDINATING CLOSELY WITH THE HIDALGO COUNTY RMA OFFICIALS REGARDING A PLAN IN ROADWAY INFRASTRUCTURE IMPROVEMENTS THAT ARE TENTATIVELY SCHEDULED TO HEAR SOMETIME LATE SUMMER. FINAL PLANS HAVE REVELED SOME POTENTIAL WATERLINE ADJUSTMENTS THAT MAY BE NEEDED ALONG MCCOLL ROAD AND ALONG 10TH STREET. IF YOU ALL RECALL, THE 16 INCH WATERLINE ALONG MCCOLL ROAD WAS DESIGNED BY RAMIRO GUTIERREZ SOME YEARS AGO. QUITE A FEW YEARS AGO ACTUALLY. STAFF FEELS THAT HE'S IN THE BEST POSITION AS FAR AS HAVING KNOWLEDGE OF THIS SITE AND THAT WATERLINE TO BE ABLE TO POTENTIALLY PUT TOGETHER INSTEAD OF SOME ADJUSTMENT PLANS. STAFF RECOMMENDING THAT WE RETAIN OR SELECT GUTIERREZ AND RETAIN HIM FOR THIS LIMITED SCOPE. IT'S BASICALLY GOING TO INVOLVE QUITE A BIT OF SURVEYING, AND THEY DO HAVE AN IN-HOUSE RPOS AND A FEW PLAN SHEETS FOR THE ADJUSTMENT THERE AT MCCOLL AND ON 10TH STREET. ON MCCOLL, IT LOOKS LIKE A PORTION OF THAT 16 INCH WATERLINE IS GOING TO FALL WITHIN A SERVICE ROAD AND ON 10TH STREET. PRELIMINARY DRAWINGS SHOW THAT WE MAY HAVE TO SHIFT THE WATERLINE. OH NO, I'M SORRY. ON 10TH STREET, ALL WE NEED TO DO IS PUT A CASING INSIDE WITHIN THAT EXISTING 12 INCH LINE IN CASE THAT 12 INCH CROSSING THE RMA ON 10TH STREET AND MCCOLL. THAT'LL BE PART OF THE SCOPE IS TO ADJUST IT AND RUN IT THROUGH A CASING. >> YOU'VE HEARD STAFF'S RECOMMENDATION. MAY I HAVE A MOTION, PLEASE? >> APPROVE. >> SECOND. >> MOTION TO APPROVE AND SECOND. ANY DISCUSSION? ALL IN FAVOR TO THE ITEM SAY AYE. >> AYE. >> OPPOSE SAME SIGN. MOTION PASSES. THANK YOU, CARLOS. >> THANK YOU, CARLOS. >> NEXT ITEM, PLEASE. >> ITEM 3 IS DISCUSSION AND APPROVAL OF CEDAR PLACE SUBDIVISION. RAFAEL. >> [NOISE] GOOD AFTERNOON. THIS PROPERTY IS LOCATED ON THE NORTH SIDE OF CEDAR AVENUE AND APPROXIMATELY 1,000 FEET EAST OF MCCOLL ROAD. IS LOCATED WITHIN THE MCALLEN'S CITY LIMITS AND IT HAS BEEN PROPOSED AS R3 RESIDENTIAL. THE TRUCK CONSISTS OF ONE ACRE AND WILL BE A SINGLE LOT FOR RESIDENTIAL USE. THE APPLICANT IS PROPOSING TO INSTALL AN EIGHT INCH WATERLINE TO SERVICE THE PROPERTY, WHICH WOULD CONNECT TO AN EXISTING EIGHT INCH WATERLINE ALONG CEDAR AVENUE, AN EXISTING WATERLINE ON THE NORTH SIDE OF THE PROPERTY. THE APPLICANT IS PROPOSING TO INSTALL A PRIVATE SIX INCH SEWER SERVICE TO SERVICE THE PROPERTY, WHICH WOULD CONNECT TO AN EXISTING EIGHT INCH SEWER LINE ALONG CEDAR AVENUE. STAFF RECOMMENDS APPROVAL OF THE PROPOSED SUBDIVISION SUBJECT TO DEDICATION OF A UTILITY EASEMENT, POSSIBLY ALONG THE PERIMETER OF THE PROPERTY AND WHERE THE MAIN UTILITY LINES ARE BEING PROPOSED. INSTALLATION OF THE REPOS PULL THE UTILITY INFRASTRUCTURE BEING CONSTRUCTED AS PROPOSED, AND THEN INDIVIDUAL WATER SERVICES FOR EACH UNIT. >> YOU HEARD STAFF'S RECOMMENDATION. MAY I HAVE A MOTION, PLEASE? >> [INAUDIBLE]. >> MOTION TO SECOND. ANY DISCUSSION? HEARING NONE. ALL IN FAVOR OF THE ITEM SAY AYE. >> AYE. >> OPPOSE SAME SIGN. [c) Consideration and Approval of Selection and Award of Professional Services Contract for Engineering Consulting and Surveying Services related to the Hidalgo County RMA Project.] [00:25:01] MOTION PASSES. ITEM 3B, PLEASE. >> ITEM 3B IS DISCUSSION AND APPROVAL OF PENITAS LOTS 1A AND 1B SUBDIVISION. >> THIS PROPERTY IS LOCATED ON THE EAST SIDE OF 23RD STREET AND APPROXIMATELY 450 FEET SOUTH OF TRENTON ROAD. IS LOCATED WITHIN MCALLEN'S CITY LIMITS AND IT HAS BEEN PROPOSED AS C3 COMMERCIAL. THE TRUCK CONSISTS THOSE 0.964 ACRES, THERE WILL BE TWO LOTS FOR COMMERCIAL USE. THE APPLICANT IS PROPOSING TO UTILIZE THE EXISTING WATER SERVICES TO SERVICE THE PROPERTY. THE PROPERTIES WHICH ARE CONNECTED TO THE EXISTING 12 INCH WATERLINE ALONG 23RD STREET. THE APPLICANT IS ALSO PROPOSING TO UTILIZE THE EXISTING SEWER SERVICES TO SERVE THE PROPERTY WHICH ARE CONNECTED TO THE EXISTING EIGHT INCH SEWER LINE ALONG THE EASTERN PROPERTY LINE. STAFF RECOMMENDS APPROVAL OF THE PROPOSED SUBDIVISION SUBJECT TO DEDICATION OF A UTILITY EASEMENT, POSSIBLY ALONG THE PERIMETER OF THE PROPERTY. PAYMENT OF THE WATERLINE REIMBURSEMENT TO MPU IN THE AMOUNT OF $328.86 FOR THE NORTH-CENTRAL DISTRIBUTION WATERLINE PROJECT AND PAYMENT OF A SEWER LINE REIMBURSEMENT TO MPU IN THE AMOUNT OF $1259.46 FOR THE [INAUDIBLE] DIVERSION THROUGH PROJECT. >> YOU'VE HEARD STAFF'S RECOMMENDATION. MAY I HAVE MOTION, PLEASE? [OVERLAPPING] >> REMOVE. >> SECOND. >> SECOND. ANY DISCUSSION? HEARING NONE. ALL IN FAVOR OF THE ITEMS SAY AYE. >> AYE. >> OPPOSE SAME SIGN. MOTION PASSES. ITEM 4A. >> ITEM 4A IS REVIEW OF RESULTS OF FINANCIAL OPERATIONS AS OF MARCH 31ST, 2021. THIS WILL BE A SECOND QUARTER FINANCIAL UPDATE. THIS IS NOT FOR ACTION, THIS IS FOR INFORMATION ONLY. >> THANK YOU, RAFAEL. [OVERLAPPING] WELCOME, MELBA. >> THANK YOU. GOOD AFTERNOON, MR. CHAIRMAN, MEMBERS OF THE BOARD, MR. MAYOR, WE WILL MISS YOU. PRESENTED FOR YOUR REVIEW THIS AFTERNOON ARE RESULTS OF FINANCIAL OPERATIONS FOR THE FIRST HALF OF THIS FISCAL YEAR FOR THE PERIOD ENDED MARCH 31ST, 2021. AS INDICATED ON PAGE 2 OF THE FINANCIAL REPORTS, WATER FUND REVENUES OF $10.2 MILLION CAME IN TWO PERCENT UNDER LAST YEAR, SEVEN PERCENT UNDER BUDGET ON A FLAT BASIS, WHILE YEAR-TO-DATE EXPENSES OF $9.8 MILLION CAME IN SLIGHTLY OVER LAST YEAR, WHILE REMAINING SEVEN PERCENT UNDER BUDGET. [3. UTILITY LAYOUTS:] THIS RESULTED IN NET REVENUES OVER EXPENSES FOR THE PERIOD OF $335,311. [a) Discussion and Approval of Cedar Place Subdivision.] DURING THIS PERIOD, [NOISE] WATER AND SEWER OPERATIONS EXPERIENCED AN INCREASE IN NUMBER OF ACCOUNTS, IN NEW ACCOUNTS ACTUALLY. AT MARCH 31ST, 49,117 WATER ACCOUNTS WERE SERVICED COMPARED TO 48,277 THE PRIOR YEAR. THAT'S AN INCREASE OF 840 NEW ACCOUNTS. THAT'S PRETTY SIGNIFICANT, AND WE CAN ATTRIBUTE THAT TO AN INCREASE IN RESIDENTIAL ACCOUNTS. IT WAS SOMEWHAT SURPRISING CONSIDERING WE'RE IN THIS COVID PERIOD, BUT YET AT THE SAME TIME WHEN YOU HEAR CONTINUOUSLY ON THE NEWS ABOUT THE HOUSING MARKET AND HOW THERE ARE NO HOUSES AVAILABLE OR PROPERTIES AVAILABLE, IT'S QUITE UNDERSTANDABLE WHY THE NUMBER IS SO HIGH. WE HADN'T SEEN A NUMBER LIKE THAT FOR FIRST SIX MONTHS OUT OF A YEAR IN A REALLY SIGNIFICANTLY LONG TIME. FOR THE SIX-MONTH PERIOD, HOWEVER, WE EXPERIENCED AN INCREASE OF 702 NEW ACCOUNTS COMPARED TO A 327 INCREASE THE FIRST SIX MONTHS OF LAST YEAR. >> REPEAT THE NUMBER AGAIN. >> SEVEN HUNDRED AND TWO NEW ACCOUNTS COMPARED TO 327 THAT WE GAINED THE FIRST SIX MONTHS OF LAST YEAR. THAT'S SOMEWHAT OF AN INDICATION AS TO [NOISE] JUST WHAT [b) Discussion and Approval of Penitas Lots 1A & 1B Subdivision.] HAS TRANSPIRED DURING THIS COVID PERIOD, ESPECIALLY WITH PEOPLE REALLY STAYING HOME AND NEEDING A HOME. WITH INTEREST RATES BEING WHAT THEY ARE, IT WAS AN OPPORTUNE TIME FOR PEOPLE TO EVEN PURCHASE HOMES AT THIS TIME. >> JUST A REFERENCE NUMBER, WE BUDGET ABOUT 750 CONNECTIONS A YEAR FOR THE BUDGET? >> ABOUT 500 ON THE RESIDENTIAL ACCOUNTS AND 88 ON THE COMMERCIAL ACCOUNTS, [OVERLAPPING] SO WE'VE ALREADY EXCEEDED THAT. >> WATER FUND AND THE SEWER FUND NUMBER IS NOT AS GREAT BECAUSE OF-[OVERLAPPING] >> NO, BECAUSE WE HAVE IRRIGATION ACCOUNTS ALSO THAT ARE NOT AS OUR SEWER FEES. >> YEAH. >> SO IT'S A LITTLE LOWER ON THE SEWER SIDE. >> THE IRRIGATION ACCOUNTS ON THE WATER SIDE OR SEWER SIDE? IT'S THE WATER SIDE, IS IT? >> IT'S ONLY ON THE WATER SIDE. >> SHERRY LANDS A BIG FACTOR IN THE NUMBER OF HOUSING PERMITS, TRES LAGOS. [00:30:07] >> YEAH, TRES LAGOS. >> YES. [NOISE] YOUR DUE DATE CONSUMPTION OF APPROXIMATELY 3.7 BILLION GALLONS DECREASED TWO PERCENT FROM LAST YEAR, COMING IN AROUND EIGHT PERCENT UNDER OUR PLANNED CONSUMPTION OF NINE BILLION GALLONS FOR THE YEAR. [4. MANAGER'S REPORT:] [a) Review of Results of Financial Operationas as of March 31, 2021.] NORMALLY, THE AMOUNT OF CONSUMPTION THAT PEOPLE CONSUME IS DIRECTLY CONNECTED TO THE AMOUNT OF RAINFALL THAT WE GET. UNFORTUNATELY, THIS IS NOT NECESSARILY THE CASE THIS YEAR ONLY BECAUSE IT WAS SUCH A COOL, MOIST SIX-MONTH PERIOD. WE ONLY EXPERIENCED 3.55 INCHES OF RAIN FOR THIS SIX MONTHS COMPARED TO A LITTLE OVER FIVE INCHES THE FIRST SIX MONTHS OF LAST YEAR. THE TEMPERATURES ACTUALLY INDICATE THE SAME WHERE THIS YEAR THE MEAN AVERAGE TEMPERATURE FOR THE FIRST SIX MONTHS WAS ABOUT 68 DEGREES, COMPARED TO LAST YEAR WAS 71. IT WAS MUCH COOLER. OF COURSE, WHEN YOU FACTOR IN THE FREEZE, THAT DROVE OR IMPACTED THE NUMBER AS WELL. AS INDICATED ON PAGE 5 OF THE FINANCIAL REPORT, SEWER FUND REVENUES OF $9.8 MILLION CAME IN, [NOISE] THREE PERCENT OVER LAST YEAR, EIGHT PERCENT UNDER BUDGET ON A FLAT BASIS, WHILE YOUR DUE DATE EXPENSES OF $9.4 MILLION CAME IN THREE PERCENT OVER LAST YEAR, FOUR PERCENT INTO BUDGET. THIS RESULTED IN NET REVENUES OVER EXPENSES OF $427,009. AS WE DISCUSSED AS I PRESENTED ON THE WATER SIDE, WE DID HAVE SOME GROWTH IN THE NUMBER OF SEWER ACCOUNTS AS WELL. AT MARCH 31ST, 43,747 SEWER ACCOUNTS WERE SERVICED COMPARED TO 43,108 THE PRIOR YEAR. AN INCREASE OF 639 ACCOUNTS. ALSO, FOR THE SIX-MONTH PERIOD AS [NOISE] OCCURRED WITHIN THE WATER FUND, WE INCREASED 529 NEW ACCOUNTS COMPARED TO 304 THE PRIOR YEAR. COMBINED WORKING CAPITAL IS REPORTED AT $11,676,036 WITH A DEBT TO EQUITY RATIO REPORTED AT 0.87-1. NOW, OF COURSE, MCCLELLAN'S, OUR MPS FINANCIAL CONDITION REMAINS STABLE. INVESTMENT EARNINGS ARE UNDERPERFORMING LAST YEAR'S EARNINGS AND BUDGET FOR THIS PERIOD OF THE YEAR. THE UTILITIES, $50.6 MILLION INVESTMENT PORTFOLIO PERFORMED AT A BLENDED RATE OF 0.47 PERCENT FOR THE FIRST SIX MONTHS COMPARED TO 2.14 IN JUNE OF LAST YEAR. WE HAD A NUMBER OF HIGH INTERESTS BEARING CDS AND GOVERNMENT SECURITIES THAT ACTUALLY MATURED OR WERE CALLED, WHICH BROUGHT OUR CURRENT RATE DOWN SIGNIFICANTLY. THE INVESTMENTS THEMSELVES ARE AT A BLENDED RATE OF 1.31 PERCENT COMPARED TO 1.58 PERCENT. AT MARCH 31ST, THE PORTFOLIO WAS INVESTED TWO PERCENT IN NON-INTEREST BEARING DEMAND ACCOUNTS, 38 PERCENT IN CDS EARNING 1.11 PERCENT COMPARED TO 1.76 PERCENT THE PREVIOUS YEAR, FIVE PERCENT IN THE CDARS PROGRAM EARNING 2.62 PERCENT, WHICH IS THE SAME AS LAST YEAR, AND 55 PERCENT IN TEXPOOL PRIME, WHICH EARNED A BLENDED RATE OF 0.09 PERCENT COMPARED TO 1.34 PERCENT THE PRIOR YEAR. RATES, WE DON'T ANTICIPATE RATE'S GOING UP ANYTIME SOON. ALL INDICATIONS ARE THAT WE MAY BE WAITING INTO POSSIBLY 2023 TO SEE ANY UPTICK TO THOSE RATES. IN THE MEANTIME, WE WILL CONTINUE TO ATTEMPT TO DIVERSIFY OUR PORTFOLIO AND SEEK OUT AS MUCH YIELD AS WE CAN POSSIBLY OBTAIN. ONE MORE NOTE, WE CURRENTLY HAVE ABOUT $3.5 MILLION IN AN S-CURVE WITH THE TEXAS WATER DEVELOPMENT BOARD FOR SOME OF OUR LOANS. THAT HAS GONE DOWN [NOISE] SIGNIFICANTLY BECAUSE OF ALL THE PROJECTS THAT [00:35:02] WE CURRENTLY HAVE [NOISE] UNDER CONSTRUCTION. THIS CONCLUDES MY PRESENTATION. I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. >> I HAVE A QUICK QUESTION. THE TEXAS POOL, IS THAT THE ONE THAT EVERYBODY INVEST IN, EVERY GOVERNMENT ENTITY? I THOUGHT THERE WAS A GOOD GUARANTEED RETURN ON THAT. >> NO. ACTUALLY, THIS ONE, THEY HAVE TWO POOLS ACTUALLY, TEXPOOL. ONE OF THEM HAS COMMERCIAL PAPER, WHICH IS A LITTLE BIT HIGHER YIELDING THAN JUST REGULAR FIXED INCOME, TREASURIES, GOVERNMENTS THAT THING, MONEY MARKETS, AND CDS. BUT THE SPREAD BETWEEN THE TWO HAS JUST NARROWED SIGNIFICANTLY. I WILL TELL YOU WE HAVE GONE AND SOLICITED FOR CDS AND BANKS ARE OVER FUNDED. THEY HAVE SO MUCH CASH AND A LOT OF IT HAS TO DO WITH THE STIMULUS MONEY OR THE ART MONEY THAT'S COMING IN, BUT THEY'RE NOT REALLY WANTING OUR DEPOSITS, WHICH IS UNFORTUNATE FOR US BECAUSE IT DEFEATS THE PURPOSE OF COMPETITIVE BIDDING. WE DID GO OUT AND SOLICIT FOR GOVERNMENT SECURITIES THE OTHER DAY AND EVEN THOSE WERE SOMEWHAT LOW, BUT WE'LL CONTINUE TO PRESS ON AND SEE WHAT'S OUT THERE. >> WE'RE GOING TO SEE CHARGES TO KEEP YOUR MONEY. >> SURE. [OVERLAPPING] >> MAYBE EXTRA FEES. >> WHAT IS THIS CDARS? WHAT IS THAT? >> CDARS IS ACTUALLY A POOLING OF CITIES. BUT THEY'RE ALL UNDER 250,000 AT DIFFERENT BANKS ACROSS THE NATION. WE PARTICIPATE WITH ONE BANK, IN THIS PARTICULAR CASE, IT'S THE BANK OF SOUTH TEXAS, AND THEY'RE A NETWORK THAT GO AND SOLICIT ALL THOSE CITIES. IT'S ACTUALLY A PROGRAM. OCCASIONALLY, WE'LL RECEIVE WORD THAT ONE OF THE BANKS IN OUR POOL, THAT WE JUST SEND THEM A $10 MILLION CHECK AND SAY, "HEY, YOU KNOW WE INVESTED THAT." WHICH OPERATIONALLY, ADMINISTRATIVELY, IT MAKES IT A LOT EASIER FOR US SO WE DON'T HAVE TO BOOK EVERY SINGLE ONE OF THOSE $250,000 CITIES AND ALSO THE INTEREST ASSOCIATED WITH THEM. BECAUSE THEY ALL PAY DIFFERENTLY, THEY'RE ALL STRUCTURED DIFFERENTLY, BUT THAT'S BASICALLY WHAT IT IS. IT'S JUST A POOLING OF CITIES. >> DIFFERENT TIMES. I HAD A QUESTION. WHY WOULD ELECTRICITY BILLS BE UNDER PLANTS? >> YES. >> EXPENSES? >> THE PLANTS PRIMARILY ARE UNDER OTHER SERVICES. >> WHERE IS IT? I DIDN'T SEE THAT. [OVERLAPPING] >> LET ME. OTHER SERVICE, LET ME WHAT PAGE THAT IS. >> THE REASON I'M SAYING THAT IS BECAUSE I'M ON THE TCAP BOARD, WE BUY ALL OUR POWER THROUGH TCAP, WHICH IS A TEXAS COALITION SOMETHING POWER. AGGREGATED POWER ACTUALLY. [LAUGHTER] WE'RE ON A FIXED CONTRACT SO WHEN THE FREEZE HAPPENED, WE DIDN'T PAY ANY MORE FOR ELECTRICITY. BUT EVERYBODY PAID FOR WHAT THEY CALL AUXILIARY SERVICES. AUXILIARY SERVICES ARE RUN BY RCA, WHICH IS SERVICES THAT ARE NEEDED TO KEEP THE GRID UP AND RUNNING. [NOISE] DURING THE FREEZE, FOR DIRECT SERVICES WHICH THEY GO OUT TO BID LIKE AN HOURLY BASIS, DAILY, HALF-DAY, WEEK, WHATEVER IT IS. DURING A CRISIS IN OFTENTIMES, IN ORDER TO BALANCE THE GRID BECAUSE WE LIVE ON THE SOUTH SIDE OF THE GRID SO A LOT OF TIMES WE PLAY ANCILLARY SERVICES TO BRING POWER TO US BECAUSE WE DON'T GENERATE ENOUGH LOCALLY. THOSE ARE NOT MUCH, MAYBE ONE OR TWO PERCENT, THAT WOULD BE HIGH OF ANCILLARY SERVICES EVERY MONTH. BUT IN THE FREEZE, THE FIRST THING THEY DID, THEY SAID, "IF YOU BID WE WOULDN'T GIVE YOU $9,000, WE'RE GOING TO THE MAXIMUM AMOUNT WE CAN UNDER LAW", NORMALLY 9,000 A MEGAWATT HOUR. NORMALLY, POWER COSTS $30 A MEGAWATT-HOUR TWO-AND-A-HALF TO THREE-AND-A-HALF, $25-35 A MEGAWATT-HOUR. FOR YOUR ELECTRIC BILL, IT'S TWO-AND-A-HALF TO THREE PERCENT. THREE CENTS, THREE-AND-A-HALF, FOUR IT LIKE THAT. WHEN THE EMERGENCY HAPPENED, THEY WANTED TO ENCOURAGE EVERYBODY TO PRODUCE ELECTRICITY, SO THEY SAID, "WE'RE GOING TO GO TO THE EMERGENCY RATE OF 9,000." THAT WAS SET BY THE LEGISLATURE 20 YEARS AGO. NOBODY EVER THOUGHT IT WOULD HAPPEN [NOISE] FOR THE DURATION THAT IT HAPPENED. WE DON'T KNOW IF THERE'S ENOUGH POWER IN THE GRID TO EVEN UNDER 9,000 TO PROVIDE, [00:40:02] SO WE'RE GOING TO ASK YOU TO BID FOR STANDBY, AND THEN IF WE USE YOUR POWER, YOU TELL US WHAT IT COSTS. YOU MAKE IT UP, IT'S WHATEVER YOU WANT, AND THEY COULD ACCEPT IT OR NOT. WELL, THEY HAD TO ACCEPT ALMOST EVERYTHING BECAUSE THE PRIMARY SERVICES WERE FAILING AND THEY DIDN'T KNOW HOW MUCH AND THEY DIDN'T KNOW WHEN IT WAS AND THEY WERE ROLLING BLACKOUTS ALL OVER. PEOPLE BID IN ANCILLARY SERVICES WHICH ARE NOT PART OF YOUR NORMAL BILL. IF YOU'RE A CONSUMER AT THE HOUSE, YOU DON'T EVEN NOTICE IT, ALTHOUGH YOUR BILL SAYS, "THE COMPANY COULD PASS IT THROUGH, BUT NOBODY EVER NOTICES THAT TOO MUCH." BUT IT WENT OUT AND THEY STARTED BIDDING AT $100,000, A MEGAWATT-HOUR. FROM 9,000-100,000. THEY HAD GOOD PARTS BECAUSE THERE'S SOME OF THE DAYS DURING THE FREEZE WHERE THEY WERE PAYING AND ACTUALLY HAD TO BUY THEIR POWER BACK INTO THE GRID TO MAINTAIN THE SYSTEM AT $100,000 A MEGAWATT-HOUR. MOST CONTRACTS, LARGE MANUFACTURING, ALL THE BIG COMPANIES THAT BUY THEIR POWER IN BULK, LIKE THE CITY OF MCALLEN, ALMOST ALL OF THEM HAVE A GOVERNMENTAL ACTION CLAUSE WHERE IF THERE'S A GOVERNMENT ACTION THAT CAUSES ADDITIONAL COST, YOU PAY IT AS A CUSTOMER. FOR THE CITY OF MCALLEN, OUR NORMAL BILLS, AND I WAS TRYING TO PULL IT OUT, I KNOW I PULLED STREET LIGHTS OUT. BUT THE NORMAL BILL FOR MCALLEN IS ABOUT $5.2 MILLION FOR ELECTRICITY. WE GOT A BILL FOR 1.3 MILLION IN AUXILIARY SERVICES RECENTLY. I WAS TRYING TO FIND OUT WHAT THE UTILITY BILL WAS AND I APOLOGIZE, I DON'T MEAN TO PUT YOU ON THE SPOT FOR NOT KNOWING IT, BUT I THINK IT'S A PORTION OF THAT, BUT I DON'T KNOW WHAT PORTION IT IS. YESTERDAY, OUR COMPANY THAT PROVIDES US, THE WHOLESALER, IF YOU WILL THAT PROVIDES US, THE CORPORATION POWER SAID, "WE'RE GOING TO DO THIS THREE WAYS MAYBE, YOU COULD PAY US 1.3 MILLION RIGHT NOW, WHICH WE'D LIKE, OR WE HAVE ANOTHER 12 MONTHS BEFORE WE CHANGE THE CONTRACT FORMAT, AND SO WE'LL FINANCE IT OVER THE NEXT 12 MONTHS FOR TWO-AND-A-HALF PERCENT, YOU CAN PAY IT MONTHLY AND DIVIDE 1.3 INTO 12", OR WE HAVE A SECURE CONTRACT WITH THEM WHICH WE'RE GOING TO CHANGE IN JANUARY OF NEXT YEAR. IN THIS, WE'LL FINANCE AND ALL THE WAY THROUGH, BUT IT HAS TO BE AT EIGHT PERCENT BECAUSE IT'S AN UNSECURED DEBT. THEY CAN'T PUT ANY COLLATERAL UPON IT BECAUSE WE CAN TERMINATE THOSE CONTRACTS ANYTIME WE WANT. THAT'S WHY IT'S A HIGHER PERCENT AND I DON'T KNOW WHAT THE MONTHLY COST IS OVER SIX YEARS. THE COMPANY DID SAY THOUGH THE "LEGISLATURE'S TRYING TO DEAL WITH THIS", NOT VERY WELL, BY THE WAY. [LAUGHTER] THE GOVERNOR JUST FIRED EVERYBODY IN THE PUC AND RCA AND SAID, "OKAY, I DID MY DUTY. I FIRED ALL THESE GUYS THAT MESSED US UP." [NOISE] THE SENATE ACTUALLY THROUGH DAN PATRICK TRIED TO COME UP AND SAY, "WE'RE GOING TO SECURITIZE IT. WE'RE GOING TO ACTUALLY LOOK AT REDUCING THE AMOUNTS THAT THEY CHARGE TO WHATEVER THEIR COST WERE, WHATEVER THEY WERE, PLUS A REASONABLE PERCENTAGE", $100,000 WAS NOT REASONABLE. THE IRONY IS THE LEGISLATURE LET THEM DO THAT, BUT YET PEOPLE WENT TO JAIL FOR JACKING UP PRICES ON TOILET PAPER. [LAUGHTER] I DON'T UNDERSTAND IT. THE HOUSE NEVER EVEN BROUGHT IT UP. IT WAS GOING TO BE DEAD BECAUSE THE HOUSE DIDN'T WANT TO DEAL WITH IT. BUT RIGHT NOW THERE'S SOME TALK IN THE LEGISLATURE ABOUT MAYBE AT LEAST TO PRIVATIZE SECURITIZATION THAT THE STATE'S GOING TO DO THROUGH RCA. OUR ELECTRIC PROVIDER SAID, "WE CAN PAY IT A MONTH AT A TIME." THEY WANT US TO MAKE THE FIRST PAYMENT IN JUNE BECAUSE OUR CREDITORS ARE ON THEM. THEY SAID IF WE JUST PAY ONE MONTH, AND THE LEGISLATURE DID SOMETHING IN ONE OR TWO MONTHS, DEPENDING IF THEY GO ON A SPECIAL SESSION, THEN, WHATEVER HAPPENS, WE WILL GET CREDIT BACK OR WHATEVER OR WE CAN CONTINUE TO PAY, FIGURE OUT WHAT WE'RE GOING TO DO. THE CITY COMMISSION YESTERDAY VOTED TO MAKE THE JUNE PAYMENT BASED ON THAT ONE-YEAR PROGRAM AND THEN SEE WHAT THE LEGISLATURE DOES. IF IT DOESN'T, WE'LL HAVE A WORKSHOP WITH THE UTILITY BOARD AND GO ON THERE. I HAVE TO COME OFF OF TCAP BECAUSE YOU HAVE TO BE EITHER AN ELECTED OFFICIAL OR A FULL-TIME CITY EMPLOYEE AND SO I HAVE A MONTH LEFT. [LAUGHTER] I'LL STILL BE AROUND TO EXPLAIN IT, I'LL CERTAINLY ATTEND YOUR WITH CAP BECAUSE I'VE BEEN ON THE BOARD SINCE LIKE 2000 FOR 27 YEARS IN THERE. IT USED TO BE TCAP, STAP. IT USED TO BE SOUTH TEXAS AGGREGATION PROJECT. WE MERGED WITH THE DALLAS CITIES. WE DO 275 CITIES NOW. VERY COMPETITIVE, ETC, BUT EVERYBODY GOT STUCK. IF YOU HAVE A LARGE COMPANY, YOU'RE GOING TO GET HIT WITH AN ANCILLARY SERVICE BILL THAT'S GOING TO SHOCK YOU. [OVERLAPPING] >> [OVERLAPPING] YOU PAID A MONTH OF THAT MILLION THREE? >> YEAH. WE TAKE A MONTH OF MILLION THREE IS WHAT THEY'RE ASKING. THE CITY COMMISSION SAID, "YEAH, LET'S SEE WHAT THE LEGISLATURE DOES. MAYBE IF THEY SECURITIZE, IT WILL BE BETTER DEAL OR WHATEVER." WE CAN DO THAT. [OVERLAPPING] >> HEY, IT'S ROUGHLY $60,000. THAT FIRST PAYMENT IS ROUGHLY 60,000. >> SIXTY THOUSAND. I DON'T KNOW WHAT PORTION THE UTILITY BOARD IS, BUT YOU'RE OBVIOUSLY NOT AS BIG AS THE CITY IS. THAT WOULD BE MY RECOMMENDATION TO YOU. IT'S NOT ON THE AGENDA. [00:45:01] THE CITY WILL PROBABLY MAKE THAT PAYMENT ON YOUR BEHALF OR WHATEVER BECAUSE THEY HAVEN'T BROKEN IT DOWN. [OVERLAPPING] >> [OVERLAPPING] DOES THE PB HAVE A SEPARATE WHOLESALE ELECTRICAL PROVIDER? >> NO. [OVERLAPPING] >> [OVERLAPPING] IT'S THE SAME ONE? >> YOU'RE UNDER TCAP? >> YEAH. >> IN THE WAY THAT TCAP DOES IT BECAUSE MOST OF THESE DON'T HAVE SEPARATE UTILITIES, THEY'RE JUST PART OF THE CITY AND SO TCAP DOESN'T BREAK THOSE ACCOUNTS OUT FOR US PER SE. IT'S EASY TO GET AND I THINK MEL HAS PROBABLY GOT IT. BUT I APOLOGIZE, I DIDN'T ASK YOU FOR THIS BEFORE, BUT I WANTED TO MAKE SURE I MENTIONED IT TO YOU. ANYWAYS, THAT'S IN A NUTSHELL. IT'S REALLY RIDICULOUS WHAT HAPPENED, BUT IT HAPPENED AND LEGISLATURE MAY OR MAY NOT DO ANYTHING ABOUT IT. THE GOVERNOR SAID, "I FIRED EVERYBODY", AND SO THAT'S IT. >> WHAT DOES THAT TELL YOU, MAYOR, ABOUT THE OPPORTUNITY FOR POTENTIAL ELECTRICAL GENERATION AS PART OF THE PUB AND SINCE WE'RE SO FAR SOUTH FROM THAT GRID? >> YOU GOT TWO CALPINE PLANTS, YOU'VE GOT THE PLANT MISSION, BUT THE PLANT MISSION IS READY TO RUN PLANT AND I DON'T THINK IT EVER EVEN CHARGED UP FOR, IT SO THEY'RE FREEZING. THAT'S MY UNDERSTANDING. THAT'S ALWAYS IMPORTANT. THEY'VE ALWAYS TRIED TO DO INTERCONNECT WITH MEXICO. IN FACT, THE OLD SHARED-LINE UTILITY HAS AN INTERCONNECT INTO MEXICO AND THEY SOLD THAT TO AEP. I DON'T KNOW WHAT THE SITUATION IS ON THERE, BUT I THINK WE PROBABLY SELL MORE POWER SOUTH TOO. THEY'RE MORE KILOS THAN WE IMPORT NORTH WHENEVER IT'S DOWN. BUT ANYBODY CAN GET IN ELECTRICAL BUSINESS. [OVERLAPPING] ANYBODY WHO WANTS TO CAN. [LAUGHTER] BUT $30 A MEGAWATT-HOUR IS NOT A GREAT BUSINESS TO BE IN. >> NO. BUT A $100,000 A MEGAWATT-HOUR, IT'S A GREAT BUSINESS. [LAUGHTER] >> YEAH. YOU COULD MAKE YOUR PROFIT FOR THE NEXT 10 YEARS IN FIVE DAYS AT THAT RATE WHEN YOU THINK ABOUT IT, AND IT'S A SHAME THAT THEY LET THAT DO THAT. WE PROTESTED 9,000 WHEN THEY CAME UP WITH THAT ABOUT 20 YEARS AGO. I REPRESENT ALL THE VALLEY CITIES AND STEERING COMMITTEE. WE JUST SAID THAT THIS PULL IT OUT OF THERE. I WOULD HAVE THOUGHT THEY WOULD HAVE SAID ACTUAL COST PLUS 25 PERCENT OR WHATEVER IT WOULD HAVE BEEN. EVEN 30 PERCENT AT THAT POINT WOULD HAVE BEEN APPROPRIATE. BUT 9,000, IT DIDN'T COST THEM THAT MUCH TO GENERATE FOR SURE. EVEN WHATEVER THEY DID FOR SURE DIDN'T COST US 1,000 PERCENT. ANYWAYS, THAT'S MY STORY, AND I'M STICKING TO IT. >> I WOULD HAVE HOPED THAT THE STATE AND THOSE IN A POSITION OF AUTHORITY WOULD HAVE LEARNED SOMETHING FASTER. >> YEAH. RCA'S PROBABLY GOING TO DO A SECURITIZATION PROGRAM OR THEY'RE GOING TO ISSUE THE DEBT, PAY IT OFF, PAY THE COMPANIES BACK, AND THEN CHARGE IT AS PART OF RCA. YOU DO PAY RCA FEES NOW. IF YOU EVER LOOK AT YOUR UTILITY BOARD, THERE'S ABOUT THREE OR FOUR THINGS, YOU'RE DECOMMISSIONING COSTS FOR THE NUCLEAR PLANT AND ALL THOSE THINGS. IT'LL SHOW UP, PROBABLY BE DEPENDING ON THE USAGE, $5-10 A MONTH FOR THE NEXT 20 YEARS, YOU WON'T EVEN NOTICE IT AND EVERYBODY'S HAPPY. [LAUGHTER] BUT YOU SHOULDN'T BE, BUT EVERYBODY WILL BE. >> ANYWAY, IF THERE'S NOTHING ELSE, I GUESS, THANK YOU FOR THE REPORT. >> THANK YOU. >> THANKS, MA'AM. >> I LOOK FORWARD TO THE FUTURE ONES. NEXT ITEM, PLEASE. >> NEXT ITEM 4B, THIS IS FOR ACTION. BOARD MEMBERS, THIS IS CONSIDERATION AND POSSIBLE ACTION TO WRITE OFF THE FIRST-QUARTER BAD DEBT OF FISCAL YEAR 2020-2021. PABLO? >> GOOD AFTERNOON, MR. CHAIRMAN, AND MEMBERS OF THE BOARD? SORRY. STAFF IS RECOMMENDING THE APPROVAL OF THE BAD DEBT WRITE-OFF OF DELINQUENT ACCOUNTS OF THE FIRST QUARTER OF THE FISCAL YEAR 2020-2021, TOTALING $22,347.98. THE ACCOUNT BREAKDOWN IS AS FOLLOWS: THERE ARE 266 ACCOUNTS ON THE LIST. OUT OF THE 266 ACCOUNTS OF THE PROPOSED WRITE-OFF, 208 ACCOUNTS HAVE BALANCES LESS THAN $100 AND REPRESENT 78 PERCENT OF THE TOTAL ACCOUNTS ON THE WRITE-OFF LIST REPRESENT APPROXIMATELY 42 PERCENT OF PROPOSED TOTAL DOLLAR WRITE-OFF AMOUNT. THE OTHER 58 ACCOUNTS REPRESENT 22 PERCENT OF THE TOTAL ACCOUNTS, ON THE WRITE-OFF LIST AND ARE 58 PERCENT OF THE PROPOSED TOTAL DOLLAR AMOUNT. WATER DEBIT AMOUNTS EQUALS $12,406.76, WHILE THE SEWER WRITE-OFF DEBIT AMOUNTS EQUALS $9,941.22. COMBINED REPRESENTS POINT 24 PERCENT OF THE TOTAL DOLLAR WRITE-OFF FOR THE SAME PERIOD. THE BREAKDOWN IS BY CLASSES AS FOLLOWS: RESIDENTIAL ACCOUNTS TOTALED $19,359.36 AND REPRESENT 86.63 PERCENT OF THE TOTAL WRITE-OFF, AND ARE 0.21 OF A PERCENT OF THE REVENUES FOR THE SAME PERIOD. COMMERCIAL ACCOUNTS TOTAL $2,980.62, [00:50:02] REPRESENT 13.37 PERCENT OF THE TOTAL WRITE-OFF AND A POINT 03 OF A PERCENT OF THE REVENUES FOR THE SAME PERIOD. THE BREAKDOWN BY CUSTOMER TYPE IS AS FOLLOWS: THERE ARE 215 RENTAL ACCOUNTS ON THE WRITE-OFF REPORT THAT TOTAL $14,996.97. THIS ACCOUNT REPRESENTS 67.11 PERCENT OF THE WRITE-OFF AMOUNT AND A POINT 16 OF A PERCENT OF THE REVENUES FOR THE SAME PERIOD. THERE ARE 51 OWNER ACCOUNTS ON THE WRITE-OFF TOTALING $7,351.01, REPRESENT 32.89 OF THE PROPOSED WRITE-OFF, AND A POINT 08 OF A PERCENT OF THE REVENUES FOR THE SAME PERIOD. [NOISE] OUT OF THE 266 ACCOUNTS, 58 ACCOUNTS HAVE BALANCES GREATER THAN $100. THESE ACCOUNTS REPRESENT 22 PERCENT OF THE ACCOUNTS ON THE WRITE-OFF LIST AND REPRESENT APPROXIMATELY 58 PERCENT OF THE PROPOSED TOTAL WRITE-OFF [NOISE] TOTAL AMOUNT. THE ATTACHED SPREADSHEET IS A SUMMARY OF THE 58 ACCOUNTS, OTHER WRITE-OFF BALANCE IS GREATER THAN $100. OUT OF THE 58 ACCOUNTS, 58 HAD A DEPOSIT, AND THE DEPOSIT WAS APPLIED TO THE ACCOUNT. STAFF IS RECOMMENDING THE APPROVAL OF THE BAD DEBT WRITE-OFF. OTHER DELINQUENT ACCOUNTS FOR THE FIRST QUARTER OF THE FISCAL YEAR 2020-2021 TOTALING $24,347.98, WHICH IS POINT 24 OF A PERCENT OF THE REVENUES FOR THE SAME PERIOD. THIS CONCLUDES MY REPORT AND I'LL BE HAPPY TO ENTERTAIN ANY QUESTIONS THE BOARD MIGHT HAVE. >> YOU'VE HEARD STAFF'S RECOMMENDATIONS. MAY I HAVE A MOTION? >> AS ANY OF US AROUND THE LIST, I MOVE APPROVAL OF STAFF'S RECOMMENDATION. >> DO WE HAVE A SECOND? >> SECOND. >> ANY DISCUSSION? >> [INAUDIBLE] [OVERLAPPING] >> [INAUDIBLE] BUT THERE'S A WRITE-OFF LIKE THAT. >> LET'S SAY COMPANY A HAS A WRITE-OFF AND COMPANY A COMES BACK TWO OR THREE YEARS LATER, WANTS ANOTHER WATER METER CONNECTION. IS THE WRITE-OFF COMPLETELY GONE OR DOES IT COME BACK AND SAY, "WELL, YOU KNOW WHAT? [LAUGHTER] WE HAD THIS THING FROM YOU." >> THEY WOULD HAVE TO PAY THE TOTAL AMOUNT THAT IS DEBT TO THE CITY OF MCALLEN OR ACTUALLY, MCALLEN PUBLIC UTILITIES BEFORE INITIATING SERVICES. >> OKAY, SO THEY WOULD WIND UP HAVING [INAUDIBLE] [OVERLAPPING] >> EVERYTHING WOULD HAVE TO BE COLLECTED UPFRONT BEFORE THEY SETUP ACCOUNT. >> THEY'RE JUST SAYING A BIG LET'S WRITE THIS OFF RIGHT NOW BECAUSE THEY HAD THE AMOUNT. [b) Consideration and Possible Action to Write-off the 1st Quarter Bad Debt of Fiscal Year 2020-2021.] >> THE BALANCES NEVER [INAUDIBLE] OUT OF THE SYSTEM. >> POINT 25 PERCENT LESS THAN. >> PUT IT THIS WAY, I HAD A RENTAL HOUSE AND THE PERSON WHO WAS SUPPOSED TO PAY THE WATER 15 YEARS AGO, WHEN I CAME BACK, WHEN I MOVED TO MY NEW HOUSE, PUT THE WATER BILL AND THEN HE'S LIKE HEY. >> YOU OWE THE BILL, YOU GOT TO PAY IT. >> YOU GET LIKE $100 FROM A LONG TIME AGO, [LAUGHTER] FUNDED FROM LIKE A LONG TIME AGO. [LAUGHTER] THEY MAKE YOU FUND IT. >> OKAY. I WAS JUST CURIOUS. >> YES, SIR. >> STAFF DOES CONTINUE EFFORTS TO COLLECT EVERY DOLLAR THAT IS WRITTEN OFF. >> I REMEMBER WHEN I WAS ON THE CITY COMMISSION, [INAUDIBLE] WANTED TO SPLIT UP [LAUGHTER] EACH COMMISSIONER, TAKE A FEW 100 TO MAKE FULL COST. YOU REMEMBER THAT? [LAUGHTER] I WAS LIKE, I DON'T THINK I'M GOING TO DO THAT. >> NO. FOR SOME OF THEM, YOU MIGHT KNOW, IT MIGHT DO SOME GOOD. >> YEAH. >> AS LITTLE AS, LESS THAN A QUARTER OF ONE PERCENT. >> YEAH, IT'S A GREAT COLLECTION RATE. >> LIKE I SAID, STAFF KEEPS AFTER IT, THEY'LL BE CURIOUS TO FIND OUT EXACTLY WHAT THOSE NUMBERS ARE AT SOME POINT IN TIME AGAIN. >> WHEN YOU THINK OF IT, WE GIVE CREDIT TO EVERYBODY WHO WALKS IN THE DOOR. >> RIGHT. >> THE PUBLIC IS USUALLY LIKE SHOULD OFFSET IT RIGHT? >> IT ACTUALLY GETS PRORATED AMONG ALL THE SERVICES INCLUDING SANITATION. >> HAVE YOUR MONEY [INAUDIBLE]. >> OH, YEAH, YOU WON'T WALK UP EASILY WITH IT. [LAUGHTER]. >> ANY OTHER DISCUSSION? HEARING NONE ALL IN FAVOR OF THE ITEM SAY AYE. >> AYE. >> OPPOSE SAY NAE. MOTION PASSES. THANK YOU. >> NEXT ITEM, PLEASE. >> ITEM 4C IS REIMBURSEMENT COLLECTIONS UPDATE AS OF MARCH 31ST, 2021 AGAINST SECOND QUARTER AND THIS IS ALSO FOR INFORMATION ONLY. ERICA. >> GOOD AFTERNOON? GIVE ME A QUICK SECOND. I WILL BE PRESENTING THE REIMBURSEMENT COLLECTIONS UPDATES FOR THE SECOND QUARTER OF THE FISCAL YEAR 2021. THE REIMBURSEMENTS COLLECTED DURING JANUARY THROUGH MARCH 31ST OF 2021, TOTAL $133,995.63. [00:55:02] THE BREAKDOWN IS AS FOLLOWS: WATER REIMBURSEMENTS $22,400.75. WATER ADMINISTRATION FEE $3,195.83. WASTEWATER REIMBURSEMENTS, $97,466.46. WASTEWATER ADMINISTRATION FEE, $10,932.59. FOR THE YEAR-TO-DATE COLLECTIONS FOR THE FISCAL YEAR 2021, THE BREAKDOWN IS AS FOLLOW: FOR WATER REIMBURSEMENTS $48,436.97, WATER ADMINISTRATION FEE, $6,181.88, WASTEWATER REIMBURSEMENTS $113,659.88, WASTEWATER ADMINISTRATION FEE, $13,862.51. THIS IS FOR A TOTAL YEAR-TO-DATE COLLECTION OF $182,141.24. ON THIS LINE, WE HAVE A COMPARISON BETWEEN THE YEAR-TO-DATE COLLECTIONS FROM THE PREVIOUS YEAR AND THIS CURRENT FISCAL YEAR AND WE CAN SEE A SIGNIFICANT INCREASE ON COLLECTIONS. >> IS THIS THE BIGGEST YEAR EVER MARKED? >> WE WERE TALKING ABOUT THAT AT OUR STAFF MEETING, THIS IS VERY HIGH FOR A YEAR-TO-DATE AT $182,000. YOU'LL SEE RIGHT THERE. I DON'T KNOW IF IT'S THE BIGGEST EVER BUT WE BUDGET 35 ON THE WATERSIDE, WE BUDGET 90 OR 91 ON THE WASTEWATER SIDE AND SO WE'VE ALREADY MADE OUR BUDGET SIX MONTHS INTO YEARS WHICH IS REALLY GOOD. >> [OVERLAPPING]. THIS DOESN'T INCLUDE WHAT GOES BACK TO DEVELOPERS WHO'VE GIVEN [OVERLAPPING]. >> THIS IS JUST COLLECTED AS WELL BECAUSE WE HAVE A LOT THAT WE ASSESS BUT SO THIS IS ONLY COUNTING WHAT WE'VE ACTUALLY COLLECTED. >> AT THE BEGINNING HERE WE BUDGET $100,000, WHAT HAPPENS WHEN WE COLLECT MORE THAN $100,000? DOES IT STAY IN THIS ACCOUNT OR DOES IT GO BACK TO THE GENERAL FUND OR WHATEVER? >> IT STAYS ON THE GENERAL FUND. >> EVERYONE WAS ASKING, WE'RE HAVING A BUNCH OF SITUATIONS WHERE RUN-IN LINES OUT TO SOME OF THESE SUBDIVISIONS ARE ASKING VARIANTS THAT WE COULD USE SOME OF THIS BECAUSE YOU'RE GOING TO GET TIE INTO SOME INTERVENING PROPERTIES. THIS ACCOUNT SHOULD BE BUILD UP PRETTY GOOD BECAUSE IT'S LIKE A THIRD YEAR IN A ROW, RIGHT? >> THAT'S THE KEY TO MAYORS IS THE STAFF WE ALWAYS LOOK AT THE DEVELOPABLE AREA AROUND WHEN WE DO PARTICIPATE AND SO THERE'S SEVERAL THAT ARE A LARGE PORTION AROUND THAT SUBDIVISION THAT'S DEVELOPABLE AND THAT'S WHERE WE USUALLY TEND TO COLLECT OUR MONEY BACK PRETTY QUICKLY. >> RIGHT. >> THANK YOU, ERICA. >> THANK YOU. >> THANKS AGAIN FOR THE INFORMATION ONLY. >> THANK YOU, ERICA. >> ITEM 5. >> ITEM 5 IS FUTURE AGENDA ITEMS. MR. CHAIRMAN, I KNOW THAT WE DO OWE THE BOARD AN UPDATE ON PROJECTS, ETC., AND WE'LL GO AHEAD IF IT'S OKAY WITH YOU TO WAIT FOR OUR EX-OFFICIO MEMBER TO STEP IN AND GET ORIENTED. I THINK YOU ARE FAMILIAR WITH THE WORD. [c) Reimbursement Collections Update as of March 31, 2021.] >> LET THE NEWBIE GET ON BOARD, RIGHT? >> YEAH. >> ALL RIGHT. THEN ITEM 6A, COUNSELOR? >> MR. CHAIRMAN ITEM 6A IN MY OPINION QUALIFIES FOR DISCUSSION IN EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE 551071 AND TRADITIONALLY PRESENTED TO THE ATTORNEY-CLIENT PRIVILEGE. I RECOMMEND YOU TO PASS A MOTION TO RECESS TO EXECUTIVE SESSION. >> SECOND. >> MOTION SECOND. ALL IN FAVOR SAY AYE. >> AYE. >> MOTION PASSES, IT SAYS INTO EXECUTIVE SESSION, AND WE'LL RETURN SHORTLY. [NOISE] [5. FUTURE AGENDA ITEMS:] [6. EXECUTIVE SESSION, CHAPTER 551, TEXAS GOVERNMENT CODE, SECTION 551.071 CONSULTATION WITH ATTORNEY, SECTION 551.072 LAND TRANSACTION, SECTION 551.074 PERSONNEL MATTERS; SECTION 551.087 ECONOMIC DEVELOPMENT NEGOTIATIONS:] [01:21:03] WE HAVE RETURNED FROM EXECUTIVE SESSION, [01:21:05] AND IT'S 5:21. COUNSELOR. [01:21:08] >> I RECOMMEND NO ACTION COMING OUT FROM EXECUTIVE SESSION, CHAIRMAN. [01:21:11] >> NO ACTION. ANY OTHER ITEMS? [01:21:15] I'LL ENTERTAIN THE MOTION TO ADJOURN. >> DON'T MOVE. [LAUGHTER] >> SECOND. >> DON'T MOVE. >> ADJOURNED. >> [MUSIC] WITH THAT ACTION, THIS MEETING OF THE MCALLEN PUBLIC UTILITY BOARD IS NOW ADJOURNED. REGULAR PUB MEETINGS ARE HELD ON THE SECOND AND FOURTH TUESDAY OF EACH MONTH. LOOK FOR REPEATS OF THIS MEETINGS ON WEDNESDAY, FRIDAY, AND SUNDAY ON THE MCALLEN CABLE NETWORK. * This transcript was compiled from uncorrected Closed Captioning.