[1. Meeting opened by Mayor Odham. Prayer Coordinated by Alderman Prill. Pledge of Allegiance.]
[00:00:02]
GOOD EVENING EVERYONE, AND WELCOME TO THE JUNE 25TH, 2024 NEWBURN BOARD OF ALDERMAN MEETING.
TONIGHT'S GONNA BE COORDINATED BY ALDERMAN FRILL.
UM, AT THIS TIME, I'D LIKE TO ASK REVEREND HOLMES OF THE FIRST MISSIONARY BAPTIST CHURCH TO COME UP AND OFFER THE PRAYER.
EVENING ALL THE ALDERMANS TO MY INVITE, THE ALDERMAN PRI ALL OF OUR ELECTED OFFICIALS AND THOSE THAT SERVE THE CITY OF NEWBURN.
UH, LET US BOW FATHER GOD IN THE NAME OF JESUS.
WE THANK YOU ONCE AGAIN FOR THIS OPPORTUNITY TO COME AND TO PRAY FOR THOSE GOD THAT YOU HAVE APPOINTED GOD TO BE IN A DECISION MAKING PROCESS.
MY PRAYER TONIGHT, GOD, IS THAT YOU WILL CONTINUE TO LEADING, GUIDE THEM GOD IN THEIR DECISION MAKING PROCESS AS WE CONTINUE GOD TO WORK, TO BUILD THE BEST CITY THAT WE CAN BE.
AND AGAIN, GOD, I ASK THAT I PRAY FOR THEIR FAMILIES, GOD, BECAUSE EACH REPRESENTATIVE HERE, UH, THEIR FAMILY, MAKE A SACRIFICE FOR THEM TO SERVE THIS GREAT CITY.
IN THE NAME OF THE FATHER, SON, AND THE HOLY GHOST IS OUR PRAYER.
PLEASE STAND WITH ME AS WE PLEDGE TO THE FLAG OUR COUNTRY.
I PLEDGE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC HOLY STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
MADAM CLERK, IF YOU WOULD PLEASE CALL THE ROLL ALDERMAN KRILL.
[3. Approve Agenda.]
ITEM NUMBER THREE IS TO APPROVE THE AGENDA.ARE ANY CHANGES THAT YOU'D LIKE TO MAKE? IF NOT, I ENTERTAIN A MOTION TO APPROVE.
A SECOND TO APPROVE THE AGENDA.
ANY FURTHER DISCUSSION? HEARING NONE.
ANY OPPOSED? AGENDA'S APPROVED.
[Consent Agenda]
UP IS THE CONSENT AGENDA ITEMS NUMBER FOUR AND FIVE.MAYOR, I'D LIKE TO MAKE A MOTION TO APPROVE THE CONSENT AGENDA.
ANY FURTHER DISCUSSION? HEARING, HEARING NONE.
LET'S HAVE A ROLL CALL STARTING WITH ALDERMAN FRILL.
[6. Conduct a Public Hearing and Consider Adopting: a) an Ordinance to Establish the Rates for Consumption of Electricity Effective July 1, 2024; b) an Ordinance for a Power Cost Adjustment Rider Applicable to the Electric Rate Ordinance for Consumption of Electricity Effective July 1 , 2024; and c) an Ordinance for a Revenue Reconciliation Adjustment Rider Applicable to the Electric Rate Ordinance for Consumption of Electricity Effective July 1 , 2024.]
ITEM NUMBER SIX.CONDUCT A PUBLIC HEARING AND CONSIDER ADOPTING AN ORDINANCE TO ESTABLISH THE RATES FOR CONSUMPTION OF ELECTRICITY EFFECTIVE JULY 1ST, 2024.
AND B, AN ORDINANCE FOR A POWER COST ADJUSTMENT RIDER APPLICABLE TO THE ELECTRIC RATE ORDINANCE FOR CONSUMPTION OF ELECTRICITY, EFFECTIVE JULY 1ST, 2024.
AND C, AN ORDINANCE FOR A REVENUE RECONCILIATION ADJUSTMENT RIDER APPLICABLE TO THE ELECTRIC RATE ORDINANCE FOR CONSUMPTION OF ELECTRICITY.
ALSO EFFECTIVE JULY 1ST, 2024.
MR. BOUCHARD, I BELIEVE IS GONNA MAKE THIS PRESENTATION.
UH, THANK YOU FOR HEARING ME ON THIS VERY IMPORTANT MATTER TONIGHT.
UM, I'M ASKING YOUR SUPPORT AS I COME BEFORE YOU TO CONSIDER, UH, CHANGES TO OUR ELECTRIC RATES.
I DISCUSSED, UH, IN QUITE DETAIL, UM, THE IMPORTANCE OF THIS AND WHAT'S DRIVING THIS TONIGHT.
I PLAN TO JUST SUMMARIZE, MAYBE NOT TAKE YOU IN QUITE SUCH A DEEP DIVE IN THOSE DETAILS WE DISCUSSED BACK IN MAY.
AND BRING YOUR ATTENTION TO ANY THINGS THAT MAY HAVE CHANGED SINCE, SINCE THAT TIME.
SO WHY DO WE NEED A RATE PLAN, I GUESS, UH, BOTTOM LINE, UP FRONT, IN VERY GENERAL TERMS, UM, WE'RE OPERATING AT A LOSS.
WE'VE BEEN OPERATING A LOSS SINCE 2020.
CURRENTLY WE'RE ABOUT $3 MILLION.
UM, ELECTRICITY'S INCREASED OUR POWER COSTS, UH, $3 MILLION, UM, EFFECTIVE APRIL THIS YEAR.
SO LOSSES WILL CONTINUE TO GROW, UM, BY UP TO $6 MILLION.
UM, AS WE APPROACH THE END OF FISCAL YEAR 25, UM, FACTOR IN THAT WE HAVE A NEGATIVE DEBT COVERAGE RATIO OF 2.5 OR 2.45, AND WE'RE FORECASTING ADDITIONAL POWER COST INCREASES.
IT ALL SPELLS RATE INCREASE TO ME, BUT IN MORE DETAIL, UM, OUR PURCHASE OF POWER SUPPLY COSTS ARE ABOUT 75 OR 70% OF OUR TOTAL OPERATING BUDGET.
[00:05:01]
YEAR.AS I MENTIONED, ELECTRIC CITIES IS PASSING ON POWER SUPPLY COSTS TO US AROUND $3 MILLION ANNUALLY.
CONTINUING TO FORECAST THOSE COSTS WILL CONTINUE TO RISE OVER THE NEXT FEW YEARS.
OUR RATE STABILIZATION FUND HAS BEEN DEPLETED AND OUR ELECTRIC FUND BALANCE IS BELOW OUR OWN POLICY.
UH, LIMITS AT 90 DAYS CASH ON HAND BY THE END OF FISCAL YEAR 25, I EXPECT IT TO BE 40 DAYS CASH ON HAND AND A NEGATIVE CASH BALANCE BY THE MID, UM, FISCAL YEAR 2026.
INDUSTRY, UH, STANDARDS FOR CASH ON HAND IS 120 DAYS, AND THAT WOULD BE A GOOD MINIMUM FOR US TO TARGET.
AND A AND A GOAL WOULD BE 300 DAYS.
UM, THIS HURTS US, UM, FOR SYSTEM MAINTENANCE.
IT HURTS US ON STORM RESTORATION AND IT HURTS US ON BORROWING, UH, FOR OUR CAPITAL NEEDS.
UM, DRIVING DOWN THE FUND BALANCE IS OBVIOUSLY INFLATION.
WE'VE SEEN 18 TO 900% INFLATION OVER THE LAST FEW YEARS ON ALL GOODS AND SERVICES AND OTHER FACTORS THAT ARE DRAINING.
OUR, UM, FUND BALANCE THAT I DON'T HAVE LISTED THERE IS HOW WILL WE RESPOND TO STORMS? UH, WHAT HAS OUR RESPONSE BEEN TO BROADBAND SERVICE PROVIDERS COMING INTO OUR TERRITORY AND WANTING ACCESS TO OUR POLLS, UH, RESPONSE TO N-C-D-O-T PROJECTS AND OUR OWN LINE EXTENSION PRO UH, POLICY AND HOW THAT'S IMPACTING OUR, OUR CASH.
SO, OTHER REASONS WE NEED TO CONSIDER.
RATE PLAN RATES WERE LOWERED IN 20 15, 20 16, 20 17.
I CAN'T THINK OF ANY OTHER BUSINESS THAT IS STILL OPERATING TODAY THAT HAS NOT INCREASED PRICES FOR 10 YEARS.
OUR SYSTEM AGE, UM, IS OF DRIVING FACTOR ON OUR FUNDS.
THE NET BOOK VALUE IS REPORTED BY OUR FINANCIAL CONSULTANT IS 39%, WHICH MEANS WE HAVE A DEPRECIATED SYSTEM, MEANS IT'S OLD, IT KIND OF MATCHES, LINES UP WITH MY CAPITAL.
ASSESSMENT OF THE SYSTEM REQUIRES LOTS OF IMPROVEMENTS, UH, REQUIRES A GROWING AMOUNT OF CAPITAL TO MAINTAIN THE SYSTEM OF POLES AND WIRES AND HARDWARE AND SOFTWARE AND METERS.
I CAN'T SUPPORT LESS, MORE THAN ONE CONTINGENCY IN CERTAIN CASES.
I HAVE VERY LIMITED CAPABILITY TO PREVENT DISRUPTIONS AND INTERRUPTIONS.
AND I HAVE LIMITED CAPACITY TO REROUTE POWER TO ADDRESS TWO DISTRESSED COMMUNITIES DURING, UH, UM, EVENTS.
ALSO IMPACTING OUR, OUR, OUR FUND BALANCE AND OUR CASH IS OUR CAPITAL NEEDS.
AS YOU'VE HEARD ME MENTION OVER THE COURSE OF MY TIME HERE, UH, WE NEED ANOTHER SUBSTATION.
WE NEED CAPACITY IN OUR SUBSTATION, WIRES IN OUR HARDWARE.
AND AS YOU KNOW, I'M, I'M WORKING ON, UH, SEVERAL GRANTS TO TRY TO GET US THERE.
UM, I HAVE THREE SUBSTATION TRANSFORMERS THAT ARE 50 YEARS OLD BEYOND THEIR USEFUL LIFE.
ONE OF 'EM FAILED IN THE WINTER, UM, EVENT THIS, UH, PAST FEBRUARY.
IT REMAINED OUTTA SERVICE UNTIL APRIL.
UM, IT IS BACK IN SERVICE NOW AND WE ARE AT FULL STRENGTH.
BUT, UM, IT'S STARING US IN THE FACE THAT WE HAVE TO DEAL WITH THIS AGING INFRASTRUCTURE AND WE NEED A PLAN TO, TO UPGRADE IT.
OUR GENERATION FLEET IS BEYOND ITS USEFUL LIFE OF 20 YEARS.
AND AS I MENTIONED BEFORE, I HAVE A GRANT REQUEST, TWO GRANT REQUESTS IN TOTALING ABOUT A NINE $49 MILLION.
ASK WITH ABOUT A $13.3 MILLION, UM, MATCH IF WE THINK WE'RE GONNA GET, UM, LENDING ON THAT $13 MILLION MATCH WITH A DEBT SERVICE.
A NEGATIVE 2.45, WE'RE SADLY MISTAKEN.
SO THE PROPOSED RATE PLAN, UM, WITH THIS RATE PLAN AND THE WAY IT WAS DESIGNED, I BELIEVE IT KEEPS OUR RATES AFFORDABLE.
IT FIXES OUR DEBT COVERAGE RATIO AND ADDRESSES OUR CAPITAL NEEDS.
THERE'S A COUPLE COMPONENTS TO THIS RATE PLAN THAT I WANT TALK ABOUT AND SPEND A LITTLE TIME CLARIFYING.
THE FIRST COMPONENT IS 5% OVERALL INCREASE TO OUR RATES, AND THAT WOULD BE IN FISCAL YEAR 25, 26, AND 27.
THOSE RATES RECOVER IN OUR DESIGN TO RECOVER OUR OPERATING EXPENSES AND POWER SUPPLY COSTS UP TO A CERTAIN AMOUNT, UP TO THE AMOUNT OF EIGHT TENTHS OF A CENT FOR 8 CENT, I'M SORRY, 8 CENTS PER KILOWATT HOUR.
WE DESIGNED TO BE RECOVERED IN OUR, IN OUR POWER SUPPLY COSTS.
AND THAT IS BEING INTRODUCED AS TWO RIDERS, RIDER ONE AND RIDER TWO.
[00:10:01]
WHEN I FIRST INTRODUCED THIS IN MAY, I TALKED ABOUT OUR POWER COST ADJUSTMENT ALL BEING ONE RIDER AFTER WE SAT DOWN AND TRIED TO WRITE THE ORDINANCE FOR THIS AND SCRIPTED IT OUT.UM, SO IT WAS CLEAR, IT BECAME EVIDENT.
WE SHOULD BREAK IT UP INTO TWO PARTS.
SO THE TOTAL AMOUNT OF THE PCA OF THE POWER COST ADJUSTMENT THAT I TALKED ABOUT IN MAY IS STILL THE SAME.
I JUST BROKE IT UP INTO TWO DIFFERENT SECTIONS.
THE FIRST SECTION RIDER ONE, WHICH I'LL CALL PCA, OR POWER COST ADJUSTMENT, THAT WILL RECOVER OUR CURRENT POWER COSTS THAT ARE IN EXCESS OF THE BASE THAT I JUST TALKED ABOUT.
SO LET, FOR EXAMPLE, IF OUR BASE POWER COST IS 8 CENTS PER KILOWATT HOUR AND OUR COST THIS MONTH, A REAL COST ON POWER COST IS EIGHT AND A HALF CENTS, THEN THAT PCA WOULD COLLECT THAT OTHER HALF A CENT AND MAKE US WHOLE ON OUR POWER COSTS THAT THE RE THE RATES ARE NOT COLLECTING.
THE SECOND RIDER, THE REVENUE, UH, RECONCILIATION ADJUSTMENT RIDER, WHICH I'LL CALL THE RRA, THAT RECOVERS PREVIOUS POWER SUPPLY COSTS THAT WERE NOT COLLECTED THROUGH OUR RATES BACK TO THE YEAR 2020.
AND THAT'S ABOUT $3 MILLION IN RECOVERY.
UM, AND WITH THAT, THE PCA, THE POWER COST ADJUSTMENT RIDER W IT WILL VARY EACH AND EVERY MONTH AS OUR POWER COSTS GO UP AND DOWN, THAT RIDER WILL CHANGE AND GO UP AND DOWN EVERY SINGLE MONTH AND COLLECT WHAT OUR RATES ARE NOT COLLECTING.
THE REVENUE RECONCILIATION ADJUSTMENT RIDER IS A FIXED AMOUNT AND IT'S DESIGNED TO COLLECT THOSE PREVIOUS POWER COSTS THAT WE WEREN'T ABLE TO RECOVER.
AND IT WILL, IN MY ESTIMATION, IT'LL TAKE US A YEAR TO A YEAR AND A HALF TO COLLECT THAT.
AFTER WE COLLECT THAT, THEN WE CAN RESET THAT TO ZERO AND IT GOES AWAY.
AND EFFECTIVELY THE CUSTOMER WOULD EXPERIENCE A DECREASE IN NEW POWER COSTS.
WITH THIS PLAN, I THINK WE ALSO NEED TO COME BACK ANNUALLY AND REVIEW IT AND ASSESS WHERE IT'S AT, HOW IT'S PERFORMING, AND DO THAT ON A REGULAR BASIS AND BE LOOKING THREE TO FIVE YEARS OUT EVERY SINGLE YEAR AND MAKING THOSE ADJUSTMENTS AS AN ALTERNATE PLAN.
THIS PLAN, IT BUILDS BACK FUND BALANCE VERY QUICKLY.
IT WILL NO LONGER BE OPERATING AT LOSSES.
IT FIXES OUR DEBT COVERAGE RATIO, BUT IT'S A LESS AFFORDABLE TO CUSTOMERS.
AND WHAT THAT INCLUDES IS AN OVERALL 18% INCREASE.
SO STARTING 1ST OF JULY, NO INCREASES IN FISCAL YEAR 26, 4% INCREASE IN FISCAL YEAR 27, NO PCA, NO POWER COST ADJUSTMENT, NO REC RIGHT, NO REVENUE RECONCILIATION ADJUSTMENT.
JUST A PURE RATE, UM, RATE ADJUSTMENT.
AND ONCE AGAIN, IF WE GO WITH THIS OPTION, I THINK WE NEED TO COME BACK ANNUALLY AND, UH, AND REVIEW IT WITH THIS MODEL.
UM, WE'LL HAVE TO PAY REAL CLOSE ATTENTION TO OUR POWER SUPPLY COSTS 'CAUSE WE DON'T HAVE A MECHANISM TO, TO ADJUST FOR THAT.
SO WE'LL HAVE TO SEE HOW THIS PERFORMS OVERALL IMPACT ON A TYPICAL RESIDENTIAL CUSTOMER.
UM, CONSIDERING OUR 5% RATE PLAN THAT I JUST DISCUSSED, THIS IS WHAT IT WOULD LOOK LIKE TODAY IN FISCAL YEAR 2024.
OUR CUSTOMERS, OUR TYPICAL RESIDENTIAL CUSTOMERS EXPERIENCING A A BILL OF ABOUT $120 PER MONTH WITH THE 5% RATE PLAN IN FISCAL YEAR 25, THAT WOULD GO TO ABOUT A $15 A MONTH INCREASE IN FISCAL YEAR 25.
THAT INCLUDES BOTH THE RIDER OR BOTH THE RATE AND BOTH THE PCA AND THE REVENUE RECONCILIATION ADJUSTMENT.
IN 2026, THAT WOULD GO TO $6 A MONTH INCREASE.
AND IN 2027, ANOTHER $6 PER MONTH INCREASE FOR TOTAL OVER THAT TIME PERIOD, ABOUT $27 INCREASE.
IF YOU GO THE 18% ROUTE, WHICH I DON'T HAVE A A GRAPH HERE, BUT YOU, YOU CAN ESTIMATE IT, UM, THE FIRST YEAR, FISCAL YEAR, 2025, THIS JULY WOULD BE A $30 INCREASE.
NOTHING IN 2026, AND THEN ANOTHER $6 INCREASE IN 2027.
SO COMPARATIVELY SPEAKING, IF YOU GO THE 18% ROUTE, UH, YOU'RE LOOKING AT ABOUT A $36, UM, TOTAL INCREASE.
SO WHAT YOU'RE SAYING, CITY LIGHT BILL IS $200.
[00:15:01]
IT WAS $200? I WOULD JUST, IF IT'S ALL LINEAR AND WE'RE ALL USING THE SAME AMOUNT OF ENERGY, YOUR RATE IS PROBABLY GONNA GO UP TO, UH, $30.AND THAT'S DEPENDENT UPON HOW MUCH ENERGY THAT YOU'RE USING.
YES, TO SOME EXTENT, BUT THAT'S AN EXCELLENT POINT THAT YOU BRING UP.
WHEN WE DID THE RATE DESIGN ON THAT AND WE, WE, WE FACTORED IN THE 5%, WE PUT MOST, IF NOT ALL OF THAT 5% INTO THE BASE CHARGE.
SO THAT SHOULD BE PRETTY FIXED IF BASE CHARGE WENT UP 5% TO GET US TO 5%.
IF THERE'S ANY MINOR DIFFERENCES, WE PUT THAT INTO ENERGY.
SO THERE COULD BE SOME DIFFERENCES BASED ON THE AMOUNT OF ENERGY A PERSON'S USING OR OR BUSINESS IS USING, WHAT THE, THE EXPERIENCE SHOULD BE.
THE INCREASE SHOULD BE MOSTLY EXPERIENCED IN THE BASE CHARGE, WHICH IS FIXED.
IS THAT BASED ON, IS IT THE KILOWATTS? THE BASE CHARGE IS A FIXED AMOUNT.
THE THE RATE IS KILOWATT HOURS.
SO COMPARING THE, UM, CUSTOMER'S MONTHLY COST TO DUKE'S TODAY, UM, LIKE I SAID BEFORE, OUR CUSTOMERS ARE EXPERIENCED ABOUT $120 A MONTH.
BILL DUKE'S CUSTOMERS ARE EXPERIENCING ABOUT $154, ASSUMING THEY'RE ALL USING THE SAME AMOUNT OF ENERGY.
SO WE'RE ABOUT $34 A MONTH BELOW DUKE.
UM, AS OF TODAY GOING FORWARD, AS I MENTIONED, NEXT YEAR, A $15 INCREASE.
UM, AND THERE'S A ABOUT A $15 DIFFERENCE, ACTUALLY $30 DIFFERENCE.
AND, UM, WE MAKE OUR WAY OUT TO YEAR 2027.
WE EXPECT TO BE AT $148 A MONTH, STILL $20 A MONTH LESS THAN THAN DUE.
COMPARING THE RESIDENTIAL, UH, COSTS ON A PER UNIT BASIS, COST PER KILOWATT HOUR.
DUKE IS AT 16 CENTS PER KILOWATT HOUR.
UM, SO WE'RE ROUGHLY 4 CENTS, UM, PER KILOWATT HOUR, LESS THAN DUKE.
AS WE MAKE OUR WAY UP TO 2027 WITH THIS 5%, UM, RATE PLAN, WE'LL BE AT 15 CENTS PER KILOWATT HOUR AND DUKE WILL BE AT, AT 17 CENTS PER KILOWATT HOUR 2%, TWO 2 CENTS PER KILOWATT HOUR DIFFERENCE WILL BE LOWER.
SO I, I GUESS I'D JUST SAY IN CLOSING, JUST TO, JUST TO CLARIFY, UM, THE OBVIOUS AND, AND, AND KIND OF SUMMARIZE AND CONSOLIDATE, UM, THIS, THE BEST I CAN, WE'RE OBLIGATED TO OPERATE THE UTILITY AND THE ELECTRIC FUND AS A BUSINESS AND WE'RE HERE TO MAKE BUSINESS CHOICES AND BUSINESS DECISIONS.
UM, IF WE DON'T LIKE ANYTHING, WE DON'T LIKE THIS PLAN, WE DON'T LIKE EITHER ONE OF THEM.
WHEN WE DON'T DO ANYTHING, THE DECISION WILL BE TO ALLOW $3 MILLION IN CURRENT LOSSES TO GROW TO 6 MILLION IN 2025.
OUR FUND BALANCE WILL BE NEGATIVE.
AND 25, 26, OUR DEBT COVERAGE RATIO BECOMES MORE NEGATIVE AND OUR LENDERS OR THE STATE MAY COME IN SET RATES FOR US.
IF YOU DON'T LIKE THE RIDERS, YOU LIKE THE 5%, BUT YOU DON'T LIKE THE RIDERS, THEN THE CHOICE BECOMES THE 18% INCREASE THAT MAKES US WHOLE.
UM, SO THAT'S THE BEST OPTION.
IF YOU DON'T LIKE THE RIDERS, IF YOU WANT TO CHOOSE THE 5% RATE PATH, BUT PICK AND CHOOSE WHICH RIDERS YOU LIKE WITHOUT THE PCA, YOU'RE GONNA UNDER COLLECT YOUR POWER SUPPLY EXPENSES BY $3 MILLION A YEAR AND YOU'RE GONNA DRAIN FUND BALANCE INTO A NEGATIVE.
IF YOU CHOOSE THE 5% INCREASE WITHOUT THE RRA, WE'LL RECOVER OUR POWER COSTS GOING FORWARD, BUT WE WON'T RESTORE FUND BALANCE.
AND THAT'S WHAT, AND WE'RE CURRENTLY BELOW OUR POLICY LIMITS THERE.
SO THAT WON'T BE CORRECTED EITHER.
UM, I'D BE HAPPY TO TAKE ANY QUESTIONS.
WE WENT INTO IT GREAT DETAIL BEFORE, BUT TRY TO MAKE IT AS SUCCINCT AS POSSIBLE.
BOARD HAVE QUESTIONS, CHARLIE? UM, IF YOU COULD, THE, THE REVENUE RECONCILIATION ADJUSTMENT RIDER, CAN YOU GO INTO A LITTLE BIT MORE DETAIL AS TO WHAT THAT IS AND WHY? WHY WE WERE UNABLE TO COLLECT THE REVENUE? I THINK YOU SAID IN 2020? YES, SIR.
UM, AND WHY NOW? FOUR YEARS LATER, WE'RE LOOKING TO GO BACK
[00:20:01]
AND, AND COLLECT THAT, THAT REVENUE.BUT THAT'S THE DIRECTORY THING FOR ME TO SAY.
UM, THAT'S THE RESPONSIBLE BUSINESSMAN FOR ME TO SAY IS, IS I RECOGNIZE A SHORTFALL AND WE SHOULD COLLECT IT.
UM, WHEN WE WENT BACK AND LOOKED AT ALL OUR FINANCIAL HISTORY GOING INTO 2020 OR THEREABOUTS, OUR RATES WERE RECOVERING ALL OF OUR COSTS, ALL OF OUR OPERATING COSTS, ALL OF OUR POWER SUPPLY COSTS AFTER 2020, OUR RATES WERE NO LONGER, WE WERE LOSING MONEY.
THEY WERE NOT CAPTURING ALL OF THAT.
SO WHAT THIS REVENUE RECONCILIATION ADJUSTMENT, UM, RIDER DOES IS IT TRACKS BACK TO 2020 AND IT STARTS TO COLLECT WHAT WE'VE UNDERCOVERED AND IT WILL DO THE, IT'S DESIGNED TO DO THAT FOR ABOUT A YEAR.
DEPENDS ON WHAT OUR ENERGY SALES ARE.
MAY GO A LITTLE QUICKER, MAY GO A LITTLE SLOWER.
UM, BUT IT'S DESIGNED TO RECOVER THAT AMOUNT OF MONEY IN THE NEXT YEAR.
UM, WE COULD REDESIGN IT, WE COULD SLOW IT DOWN, COULD TAKE TWO YEARS TO COLLECT IT ALL.
BUT THAT'S THE DESIGN I USE TO TRY TO RECOVER IT WITHIN A YEAR'S TIME PERIOD.
AND THAT WILL RECOVER THAT $3 MILLION WORTH OF LOSSES THAT, THAT I MENTIONED EARLIER.
AM I ANSWERING YOUR QUESTION? THE REASON, THE REASON WE DIDN'T HAVE RATE INCREASES, IF WE WERE TO HAVE RATE INCREASES ALONG THE WAY, WE WOULD'VE CAPTURED THAT.
SO THAT'S, THAT'S THE BOTTOM LINE UP FRONT.
SO
IS THAT CORRECT? IS THAT THAT'S WHAT YOU'RE ASKING HIM, SIR.
WELL, I JUST, I WANTED TO BETTER UNDERSTAND, UH, THE RATIONALE TO GO BACK FOR, YOU KNOW, WHY IN, IN 2024 WE'RE LOOKING TO GO BACK FOUR YEARS IN TIME AND, AND TRY TO RECOUP SOME, UM, COSTS THAT WE INCURRED.
UM, AND, AND I THINK, UM, CHARLIE REALLY CLARIFIED IT VERY SIMPLY IS THAT, YOU KNOW, IN THE IDEAL WORLD, UM, THERE WOULD'VE BEEN SOME RATE INCREASES APPROVED BACK IN 2020, UM, SO THAT WE WOULD HAVE BEEN COLLECTING A HUNDRED PERCENT OF WHAT WE NEEDED TO COLLECT.
BUT THEN THAT, UNFORTUNATELY THAT DID NOT HAPPEN.
UM, SO IT WAS A, A MISSED OPPORTUNITY, IF YOU WILL, TO COLLECT SOME ADDITIONAL REVENUE FOR THE LAST FOUR YEARS.
UM, CHARLIE IS LOOKING TO SEE IF WE WOULD APPROVE, UH, THIS, THIS RECONCILIATION WRITER TO ALLOW US TO COLLECT TODAY WHAT WASN'T COLLECTED OVER THE LAST FOUR YEARS IF I STATED IT BETTER THAN I DID.
I'M TOTALLY COMFORTABLE WITH IT TO BE HONEST WITH YOU, AND THAT'S WHY I WANTED TO JUST GET FURTHER CLARIFICATION.
I JUST WANTED TO MAKE SURE I'M HEARING WHAT I'M, I'M FEELING.
WOULD YOU GO BACK AND RESTATE PLEASE AGAIN, THE 5%, THE CPCA WITH OR WITHOUT, AND THEN THE REVENUE RECONCILIATION, THE EXACT IMPACT IT WOULD HAVE.
AGAIN, YOU SAID IF WE CHOOSE ONE, TWO, OR THREE OR DON'T CHOOSE THEM ALL, WOULD YOU RESTATE THAT PLEASE? THAT SUMMARY, WHAT THE CONSEQUENCES ARE, CERTAINLY WE DON'T CHOOSE ANYTHING THE WAY I DO THE MATH.
WE DON'T CHOOSE, WE DON'T LIKE ANY OF THESE OPTIONS.
UM, IN MY MIND THAT'S A DECISION TO ALLOW $3 MILLION IN CURRENT LOSSES TO GROW TO $6 MILLION AS OUR POWER SUPPLY COSTS GROW $3 MILLION THIS YEAR.
SO THE SUM OF THAT'S $6 MILLION.
AT THE SAME TIME, I WOULD FORECAST OUR FUND BALANCE TO BE NEGATIVE BY THE TIME WE REACH 25 AND 26.
AND OUR DEBT COVERAGE RATIO OBVIOUSLY BECOMES MORE NEGATIVE AT THAT POINT IN TIME AND PROBABLY THE STATE OR OUR LENDERS WILL COME IN AND SET RATES FOR US.
SO THAT'S THE DO NOTHING OPTION.
IF YOU LIKE THE, IF YOU DON'T LIKE THE RIDERS, THEN THE 18% OPTION IS THE RIDER.
THAT IS THE OPTION TO CHOOSE THAT WILL MAKE US WHOLE.
[00:25:01]
AND THAT OPTION IS TO INCREASE THE RATE IN 2025 TO 18% ZERO IN 2026, AND THEN ANOTHER 4% IN INCREASE IN 2027.AND I WOULD CAUTION US IF WE DO THAT, WE HAVE TO PAY VERY CLOSE, KEEP A VERY CLOSE EYE ON OUR POWER SUPPLY COSTS SO THAT THEY DON'T GET OUT OF HAND AND THAT THIS 18%, UM, RECOVERS IT ALL AND BUILDS UP OUR CASH.
UM, THE 5% OPTION, IF YOU WANT TO PICK AND CHOOSE WHICH RIDER YOU LIKE OR DON'T LIKE WITH THAT OPTION, IF YOU TAKE THE 5% OPTION AND YOU DON'T PICK THE PCA, YOU'RE GONNA UNDER COLLECT POWER SUPPLY COSTS GOING FORWARD.
AND RIGHT NOW THAT'S ESTIMATED TO BE ABOUT $3 MILLION A YEAR AND YOU'LL DRAIN FUND BALANCE 'CAUSE YOU'RE, YOU'RE CONTINUING TO ABSORB THAT LOSS AND YOU'LL DRAIN IT INTO A NEGATIVE.
IF YOU CHOOSE THE 5% OPTION, KEEP THE PCA, DON'T PICK THE RRA, WE'LL RECOVER OUR POWER SUPPLY COSTS GOING FORWARD.
BUT WE WON'T RESTORE FUND BALANCE.
AND FUND BALANCE IS ALREADY CURRENTLY BELOW OUR POLICY LIMITS.
SO WE NEED A, WE NEED A RATE PLAN THAT MAKES US WHOLE ON OUR FUND BALANCE.
THAT, THAT I, DID I ANSWER YOUR QUESTION? YES.
UM, LAST YEAR WHEN WE WENT THROUGH THIS PROCESS, WHAT WAS YOUR REQUEST FOR A RATE INCREASE LAST YEAR? I DON'T BELIEVE IT CAME UP.
I DO NOT RE RECOMMEND ONE LAST YEAR.
UM, IF WE REACH TO A POINT WHERE THERE'S NO FURTHER QUESTIONS FROM THE BOARD, UH, WE'LL OPEN UP A PUBLIC HEARING, UM, ON THESE ITEMS FOR THE PUBLIC TO SPEAK.
IS THERE ANY MORE QUESTIONS FOR STAFF BEFORE WE DO THAT? OKAY, THANK YOU CHARLIE.
AT THIS TIME I'LL OPEN A PUBLIC HEARING ON ITEM NUMBER SIX.
IF ANYBODY WOULD LIKE TO COME FORWARD AND ASK A QUESTION OR MAKE A COMMENT, YOU ARE FREE TO DO SO COME FORWARD.
I LIVE AT 1 21 MORNING, THE TRAIL HERE IN NEW BERN, NORTH CAROLINA.
AND I HAVE A LITTLE BIT OF, I'M, I'M NOT SAYING DON'T DO ANY OF THIS ANYTIME SOON, BUT WHAT I'M SAYING IS THAT WE DO HAVE A WAY OF INCREASING, OF DECREASING THE COST OF ELECTRICITY THAT THE CITY PAYS.
AND THAT'S THROUGH THE LOAD MANAGEMENT.
THE PRICE THAT CITY PAYS FOR ELECTRIC IS BASED UPON THE MAXIMUM LOAD ON ANY GIVEN POINT OF TIME BECAUSE, AND THE REASON FOR THAT IS THAT DUKE'S COST TO GET IT TO US IS, IS THE EQUIPMENT BASICALLY THAT THEY HAVE TO HAVE EQUIPMENT CAPABLE OF DELIVERING THE LARGEST LOAD AT ANY GIVEN TIME.
AND THE CITY HAS THE SAME PROBLEM IN THEIR SYSTEM.
OUR SYSTEM ALSO HAS TO BE UP TO THAT.
AND SO WHAT I'M SUGGESTING IS THAT WE WORK HARDER ON THAT AND SINCE I'VE BEEN HERE IN 2015, WE'VE DONE VIRTUALLY NOTHING.
UH, VERY FEW PEOPLE KNOW ABOUT IT.
UM, I'VE, I'VE APPROACHED YOU GUYS NUMEROUS TIMES ON THIS.
UM, I, UM, RECENTLY, UM, I HAD EMAILED THE BOARD ABOUT IT AND UTILITIES INFORMED THE CITY THAT WE WOULD BE ABLE TO DO SOME, UM, PUBLICATIONS.
I PROMOTED ON THE BACK OF THE BILLS OR SOMETHING LIKE THAT.
I PROBABLY TRUE IT OUT, BUT I DO HAVE THE, I'M SORRY, I HAVE THE MAY AND I HAVE THE MARCH I GUESS, BUT I DON'T HAVE THE PAPER ONE.
I CAN, UM, I ALWAYS GET A PAPER BILL 'CAUSE I'M A METER READER.
I FIND IT HELPS TO, YOU KNOW, SAVE ME MONEY ON ELECTRICITY TO KNOW WHAT THINGS COST TO RUN.
AND THAT'S THAT, THAT'S SORT OF DEPARTMENT TOO.
SO, SO WHAT I'M SAYING IS POSTPONE IT UNTIL WE MAKE A BETTER EFFORT.
NOW ALSO, UH, I SPOKE ON FACEBOOK A LOT.
WELL I DIDN'T, I SUBMITTED A COMMENT TO A FACEBOOK, UH, POST AND THERE WAS SOME DISCUSSION ABOUT WHETHER OR NOT WE COULD DO OPT-IN VERSUS OPT OUT.
OKAY? NOW, PRESENTLY ON THE APPLICATION FOR A NEW, UH, CUSTOMER, NEW UTILITIES CUSTOMER, THERE ARE THREE SELECTIONS FOR OPT-IN OPT OUT.
BUT THERE IS NO MENTION WHATSOEVER ABOUT MANAGEMENT.
AND THAT'S A CORRECTION WE COULD MAKE VERY EASILY.
SO AS TO WHETHER IT WOULD BE LEGAL OR NOT, I, I DON'T KNOW, BUT I DON'T SEE WHY, BECAUSE IF YOU CAN OPT INTO THE OTHERS, I DON'T OPT IN OR AFTER THOSE, WHY CAN'T YOU OPT, OPT INTO? UH, SO IF YOU CHANGE IT FOR NEW CUSTOMERS
[00:30:01]
TO OPT OUT RATHER THAN OPT IN, THAT'S A PRETTY SIMPLE STATE.I DON'T SEE HOW IT COULD BE ILLEGAL.
IT'S ONLY YOU STATED IT RIGHT ON THE APPLICATION WHERE THEY'RE GONNA SEE IT.
POSSIBLY THAT, I DUNNO, I'M NOT AWARE.
OKAY, SO THAT'S, THAT'S ANOTHER IDEA.
YOU SHOULD HAVE, IN MY CASE,
UM, ALSO DON'T FORGET THESE SAVINGS IN LOAD'S MANAGEMENT, WE'LL GO ON FOR MANY YEARS, YOU KNOW, UNTIL THE HOUSE IS NO LONGER OCCUPIED OR SOMETHING.
SO BECAUSE THE EQUIPMENT WILL BE THERE, IT'LL BE DOING THE MONITORING AND WE'LL HAVE THE BENEFIT FOR, FOR MORE THAN THIS PERIOD OF TIME, WHICH IS THREE YEARS.
BUT IT'LL BE A LOT MORE THAN THAT OBVIOUSLY.
RIGHT? 'CAUSE ONCE YOU KNOW THIS IS GONNA GO ON, YOU KNOW, THE COST TO DELIVER THE EQUIP, THE ELECTRIC IS THE COST OF THE EQUIPMENT NEEDED TO DELIVER IT, PERIOD.
YOU KNOW, AND IT'S NOT GONNA CHANGE.
I THINK WE DO EXTREMELY WELL BECAUSE CUSTOMERS, JUST FOR ENROLLING, IF YOU'RE AN ALL ELECTRIC, YOU SAVE $110 A YEAR IN REBATES.
THAT'S HOW IMPORTANT IT IS TO THE CITY THAT WE'VE BEEN GIVING REBATES TO PEOPLE LIKE ME FOR SIMPLY SIGNING UP FOR, OKAY.
AND THIS WOULD ALSO REDUCE RATES FOR COMMERCIAL CUSTOMERS, WHICH HELPS US BUILD THE TAX BASE.
AND, YOU KNOW, ONE OF THE BIG THINGS IN PROMOTING, YOU KNOW, AND SO HERE WE'RE TALKING ABOUT GIVING BACK ALL THE MONEY THAT WE SAVED, YOU KNOW, BY RENEGOTIATING AND DUKE AND SO ON AND SO FORTH.
YOU KNOW, THE 14TH PERCENT WE GIVING IT ALL BACK WITHOUT EVEN TRYING SOMETHING THAT WE, SO ALL I'M ASKING FOR HERE IS A SHORT DELAY.
AND AS FAR AS THE OPT-IN OPT OPT OUT, YOU KNOW IT, IT'S THERE NOW.
AND, BUT IT'S STRICTLY, IT'S ON, UM, THAT'S MY MEMORY THOUGH.
IT'S THE, UH, ROUNDUP PROGRAM.
IT'S AUTO PAY AND IT'S EMAIL ELECTRONIC BILL.
AND WHAT I WOULD ALSO SUGGEST AT THIS POINT IS THAT SINCE WE PROPOSED THE OTHER ONE, WE RUN THE IMPRESSION, OR AT LEAST OBVIOUSLY THE IMPRESSION THAT WAS GONNA BE DONE AND IT DIDN'T GET DONE, IS THAT WE INCREASE, UH, INSERT AN ACTUAL PIECE OF PAPER EXPLAINING LOAD MANAGEMENT IN THE NEXT FEW BILLS.
AND I THINK THAT WOULD HELP A LOT.
WE EXPLAIN BECAUSE AS JEFF SAID, UNDERSTAND, BUT IT'S NOT THAT HARD TO UNDERSTAND THAT, YOU KNOW, LIKE THE COST OF THE VEHICLE, THE HEAVIEST LOAD YOU'RE GONNA CARRY IS WHAT THE VEHICLE HAS TO BE BUILT, YOU KNOW, SO, AND YET YOU CARRY THAT WEIGHT ALL THE TIME, THAT EXTRA WEIGHT AND YOU USE MORE GAS.
SO, YOU KNOW, IF YOU DELIVER A TRUCK LOAD OF FEATHERS, THEY CHARGE A LOT MORE PER POUND THAN IF YOU DELIVER A TRUCKLOAD OF LAND
ALRIGHT, THANK YOU VERY MUCH FOR YOUR TIME.
DO YOU HAVE ANY QUESTIONS FOR ME? NO, NO SIR.
EVENING NAME IS, UH, WAYNE LITTON LIVE AT 1 0 5 KNIGHT COURT HERE IN NEWBURN.
UH, WHEN I FIRST LOOK AT THIS PLAN, I MADE A COMMENT THAT THERE'S NO GOOD TIME FOR RATE INCREASES.
BEING A SENIOR, YOUR CITIZEN ON A FIXED INCOME, IT'S NOT REALLY A GOOD TIME.
BUT THE REASON I CAME HERE TONIGHT WAS TO LOOK AT THIS PLAN, LISTEN TO WHAT WAS BEING SAID, AND I'M OF THE OPINION THAT SOMETHING NEEDS TO BE DONE.
I'M A, A CUSTOMER OF THE ELECTRICITIES.
THIS WEEKEND WE HAD POWER PEOPLE IN FRONT OF OUR, UH, DEVELOPMENT WITH DUKE ENERGY DID NOT.
AND IT WAS, IT'S VERY NICE THE SERVICE WE RECEIVE WHEN THE POWER DOES GO OUT, THAT IT IS RESTORED IN A TIMELY MANNER.
I DON'T REALLY UNDERSTAND THE GOING BACK AND RETRIEVING MONEY THAT YOU DIDN'T.
I WOULD LOVE TO GO BACK FOR FOUR YEARS AND RECOVER WAGES.
MATTER OF FACT, I'D LIKE TO GO BACK 15 OR 20 YEARS AND RECOVER WAGES THAT I DID NOT GET.
UH, I DON'T KNOW ANYBODY THAT HAS A WAY BACK MACHINE.
SO I REALLY DON'T UNDERSTAND THAT PARTICULAR, UH, PROVISION.
BUT IN MY OPINION, INACTION CANNOT BE VOTED UPON.
SOME TYPE OF ACTION NEEDS TO BE TAKEN SO THAT WE CAN KEEP THIS, UH, ENTITY PROFITABLE AND SERVING THE CITIZENS OF NEWBURN IN THE TIMELY AND EFFICIENT MANNER THAT THEY DO.
ANYONE ELSE? MAYOR, HEARING NO FURTHER COMMENTS? I'LL MAKE A MOTION TO CLOSE THE PUBLIC HEARING.
I HAVE A MOTION TO SECOND TO CLOSE THE PUBLIC HEARING.
ANY FURTHER COMMENTS? HEARING NONE.
[00:35:01]
PUBLIC HEARING IS NOW CLOSED.I'D LIKE TO DIRECT THIS TO MR. BOUCHARD.
UH, MR. DUFFY TALKED ABOUT AN, UM, LOAD MANAGEMENT.
HAVE WE HAD ANY AGGRESSIVE CAMPAIGN TO, UM, GET OUR CUSTOMERS ON LOAD MANAGEMENT? ALL OF, UM, ALL NEW CONSTRUCTION IS, IS REQUIRED, UM, BY ORDINANCE TO INSTALL LOAD MANAGEMENT DEVICES, UM, ON THEIR SERVICES.
UH, WE HAVE PROBABLY, OH, HALF OF OUR CUSTOMERS ON LOAD MANAGEMENT RIGHT NOW.
UM, IT'S NOT A REALLY POPULAR PROGRAM.
UM, IT'S AN INCONVENIENCE TO A LOT OF CUSTOMERS.
NOT NECESSARILY WORTH THE COST.
WE NEED TO OPTIMIZE OUR LOAD MANAGEMENT PROGRAM.
UM, PRIMARILY STARTS WITH GENERATION.
UM, BUT THE LOAD MANAGEMENT SWITCHES THAT GO IN HOUSES AND CONTROL AIR CONDITIONERS AND HOT WATER TANKS AND HEAT PUMPS.
UM, PROBABLY ABOUT MARKET PENETRATION OF ABOUT 10,000, UM, SERVICES LEFT TO PENETRATE.
UM, GIVEN THE FACT THAT IT'S NOT A REAL POPULAR PROGRAM, LET'S SAY WE GET 2% OF THAT.
SO I WOULD ESTIMATE MAYBE ON A MONTHLY BASIS WE'D HAVE A COST AVOIDANCE AFTER WE DEDUCT ALL OF OUR EXPENSES FROM ABOUT $6,000 A MONTH.
IT'S NOT ENOUGH THEN TO MOVE THE NEEDLE, BUT HE'S ABSOLUTELY RIGHT.
WE, WE NEED TO OPTIMIZE OUR, OUR LOAD MANAGEMENT PROGRAM.
IT NOT ONLY SAVES IN OUR DEMAND COSTS AND OUR POWER COSTS, UM, WE DO GET OTHER COMPONENTS OF OUR, OF OUR BILL THAT ARE ENERGY CHARGES THAT IT DOESN'T AFFECT.
BUT, UH, HE'S ABSOLUTELY RIGHT.
IT'S A, IT'S A BIG SAVER AND UH, AND WE NEED TO OPTIMIZE WHAT WE'RE DOING THERE.
BUT I DON'T THINK THAT, UH, UM, A MARKETING CAMPAIGN FOR THAT IS, IS, IS GONNA RESOLVE THIS MATTER.
CHARLIE, I YOU MIGHT AS WELL JUST STAY THERE 'CAUSE THERE'S PROBABLY GONNA BE SOME MORE QUESTIONS.
UM, IF, AND I KNOW IT'S HARD TO LOOK AT SPECULATION, BUT IF WE HAD A HUNDRED PERCENT PARTICIPATION IN LOAD MANAGEMENT, THE FINANCIAL IMPACT, ANY IDEA OF WHAT THAT WOULD BE COMPARED TO YOUR ANNUAL SHORTFALL THAT YOU'RE FACING? I'M TRYING TO JUST SET A LEVEL OF EXPECTATIONS FOR MR. DUFFY AND, AND OTHERS BECAUSE THERE'S CERTAINLY OPPORTUNITY THERE.
BUT IF WE HAD A HUNDRED PERCENT, WE KNOW A HUNDRED PERCENT'S NOT REALISTIC, EVEN IF WE DID, THAT WOULD ONLY GET US, YOU KNOW, SAY A THIRD OF THE WAY OF WHERE WE NEED TO GO.
SO WE WOULD STILL HAVE TO DO SOMETHING.
I, AND I, I KNOW I CAUGHT YOU OFF GUARD WITH THAT QUESTION, BUT I DIDN'T KNOW IF YOU HAD MAYBE JUST SOME SORT OF IDEA OF WHAT THAT WOULD LOOK LIKE.
WELL, ON A MONTHLY BASIS, UH, WE'RE CURRENTLY JUST ON LOAD MANAGEMENT SWITCHES ALONE, IT'S ABOUT A $600,000 A MONTH COST AVOIDANCE IF WE'RE SUCCESSFUL, HOW DO I KNOW IF WE'RE SUCCESSFUL? IT'S A GUESS.
THE LARGE MAJORITY OF THOSE LOAD MANAGEMENTS, WHICH IS THAT WE'RE PUT IN, WERE ONE WAY COMMUNICATION DEVICES.
I HATE TO GET TECHNICAL ON YOU HERE.
BUT WE SEND A SIGNAL TO THE DEVICE, IT EITHER OPERATES OR IT DOESN'T.
WE DON'T KNOW IF THE CUSTOMER IS, IS AGGRAVATED WITH IT AND CUTS IT LOOSE, DISCONNECTS IT, AND WE DON'T GET A SIGNAL TO IT.
WE'RE STILL GIVING THEM THE CREDIT.
THE NEW DEVICES THAT WE'VE BEEN PUTTING IN SINCE I ARRIVED ARE TWO WAY COMMUNICATIONS.
IT ACKNOWLEDGES MY SIGNAL TELL, GIVES ME A RESPONSE BACK AND I KNOW, DID YOU OPEN OR CLOSE? ARE YOU PERFORMING THE WAY I WANT YOU TO PERFORM? AND I CAN, I CAN MEASURE THAT AND I CAN MEASURE OUR SUCCESS.
SO ALL THE ONES THAT ARE, ARE ONE WAY DEVICES.
I CAN'T MEASURE A SUCCESS AND THERE'S, MAKES NO SENSE FOR ME TO GO OUT THERE AND CHECK IT UNLESS I TAKE A NEW SWITCH WITH ME AND JUST REPLACE IT.
TO REPLACE ALL OF THOSE SWITCHES IS ABOUT 500,000 BUCKS.
SO MR. DUFFY'S, RIGHT? I'M OPTIMIZING OUR LOAD MANAGEMENT PROGRAM, WHICH INCLUDES LOAD MANAGEMENT SWITCHES IN THE HOME GENERATION, VOLTAGE CONTROL.
THE OTHER THING, IT SHOULD CON CON, IT SHOULD CONCLUDE THAT WE ARE NOT THERE YET IS TIME OF USE.
WE SHOULD EMPOWER THE CUSTOMERS WITH A RATE THAT LETS THEM MAKE A DECISION.
DO I WANT TO SHED LOAD? DO I WANT TO USE LESS POWER DURING THIS TIME PERIOD? BECAUSE WE HAVE A PRICE POINT THAT WE CAN OFFER, AND I DON'T HAVE ALL THE TOOLS IN PLACE TO DO THAT.
WE HAVE AN A MI SYSTEM GREAT START, READY TO GO WITH IT.
[00:40:01]
MANAGEMENT SYSTEM TO GET TO THAT NEXT LEVEL WHERE I CAN DO TIME OF USE BILLING THAT'S BEEN IN THE BUDGET.I'M TRYING TO GET A CONTRACT APPROVED RIGHT NOW, BUT IT'S COMING.
AND I THINK THAT'S WHERE WE NEED TO GO WITH OUR LOAD MANAGEMENT PROGRAM TO AVOID COST OF AVOIDANCE IS TO, TO PUT THE, THE, THE DECISION IN OUR CUSTOMER'S HAND AND LET THEM MAKE THE CHOICE ON WHETHER OR NOT THEY WANT TO CONSERVE OR NOT CONSERVE.
AND THEN WE ALL BENEFIT FROM IT.
DID I ANSWER YOUR QUESTION? YES, SIR.
THE NEXT QUESTION I HAVE FOR YOU IS THE PRESENTATION THAT WAS DONE BY THE CONSULTANT DURING OUR WORK SESSION, I THINK USED A FIGURE OF $120 A MONTH FOR AN AVERAGE BILL.
CAN YOU TELL US WHERE THEY GOT THAT AVERAGE BILL FROM? THAT'S OUR DATA.
SO THE AVERAGE BILL FOR THAT PARTICULAR SEGMENT THAT THEY WERE LOOKING AT IS $120 A MONTH.
I'D PROBABLY RESTATE IT A LITTLE DIFFERENTLY.
WE REPORT ENERGY INFORMATION TO THE DEPARTMENT OF ENERGY EVERY YEAR.
OUR AVERAGE RESIDENTIAL CUSTOMER FOR 2023 USED 977 KILOWATT HOURS.
SO THE RATE IN THE INFORMATION THAT YOU SAW WAS ALL BASED ON 977 KILOWATT HOURS BEING OUR AVERAGE RESIDENTIAL CUSTOMER.
SO THERE'S SOME OUTSIDE THAT ON BOTH ENDS OF THE SPECTRUM, RIGHT? AND, UM, AND FOR, FOR MANY REASONS.
SOME MAY BE ENERGY INEFFICIENT, SOME MAY JUST BE LARGE CONSUMERS.
DID THAT ANSWER YOUR QUESTION? IT DID.
UM, BECAUSE OBVIOUSLY I'M SURE, LIKE MY COUNTERPARTS HERE, WE'VE BEEN FIELDING A LOT OF QUESTIONS AND HAVING A LOT OF DISCUSSIONS ABOUT THIS.
AND I WAS QUESTIONED, WHO IN THE WORLD HAS $120 ELECTRIC BILL WITH THE CITY OF NEW BERN? SO MY ANSWER WAS THAT'S THE AVERAGE.
SO HALF THE PEOPLE OR LESS THAN THAT, AND HALF THE PEOPLE ARE MORE THAN THAT.
UM, THE, THE, THE LAST COMMENT THAT I'M, I'M PROBABLY GONNA MAKE, I WAS, I WAS A PART OF THE BOARD, UH, THAT MADE THOSE REDUCTIONS OVER THE PAST DECADE AS WAS ALDERMAN KENZIE, I'M NOT SURE ABOUT ALDERMAN.
BETH AND ALDERMAN ASKED HER IF THEY WERE A PART OF THOSE OR NOT.
BUT I VIVIDLY RECALLED HAVING THOSE DISCUSSIONS THAT BERN WAS FAR, MUCH MORE EXPENSIVE THAN DUKE.
AND OUR COMMENTS AT THAT TIME WAS, WE HAD TO CHANGE THE CULTURE BECAUSE THE CULTURE IN THE CITY OF NEW BERN FOR MANY, MANY YEARS WAS, IF YOU NEED MORE MONEY IN THE GENERAL FUND, YOU RAISE YOUR ELECTRIC RATE AND YOU TAKE THE MONEY.
OKAY? UM, AND IF ANYBODY WANTS TO HAVE THAT CONVERSATION, I'VE, THERE'S RECORDS THAT PROVE THAT, BUT OUR, AT LEAST I'LL SPEAK FOR MYSELF AND OLIVER MCKENZIE CAN CHIME IN.
MY GOAL ALL ALONG WAS TO GET US ON PAR WITH DUKE.
UM, WE LOWERED OUR RATES AND WE GOT ON PAR WITH DUKE.
NOW WHAT HAS HAPPENED IN THAT MEANTIME IS DUKE HAS RAISED THEIR RATES NUMEROUS TIMES.
AND I CAN ALSO SPEAK FIRSTHAND FOR THIS BECAUSE I'M A DUKE ENERGY CUSTOMER.
UM, THE MANAGER, ASSISTANT MANAGER MYSELF SAT DOWN IN HIS OFFICE A FEW DAYS AGO.
AND YOU'RE ON CITY OF NEWBURN.
YOU'RE ON CITY OF NEWBURN AND I'M ON DUKE AND I HAD THE HIGHEST BILL.
AND I'LL TELL YOU, MARVIN'S HOUSE IS A LOT BIGGER THAN MINE.
UM, FOSTER'S HOUSE IS, I THINK ABOUT THE SAME AGE AS MINE.
SO THERE'S PROBABLY A LOT OF MORE COMPARISON BETWEEN MY HOUSE AND HIS.
I DO HAVE A TEENAGER IN THE HOUSE.
BUT WHAT I WOULD, WHAT I DID IS I WENT BACK OVER THE LAST SEVERAL YEARS AND LOOKED AT MY AVERAGE BILL.
MY BILL IS UP ABOUT $80 OVER THE PAST THREE YEARS ON A AVERAGE MONTHLY FROM DUKE.
MY POOL IS OLDER THAN THREE YEARS OLD.
SO MY, THE REASON I'M MAKING THIS POINT IS, IS WE LOWERED OUR RATE.
WE GOT ON PAR WITH DUKE SUB, SUBSEQUENTLY, DUKE HAS RAISED THEIR RATE AND NOW THEY'RE HIGHER THAN WE ARE.
WE ARGUABLY PROVIDE A BETTER SERVICE THAN DUKE DOES, AS MR. LINTON JUST POINTED OUT.
UM, SO I HAD MADE THE RECOMMENDATION, I ASKED YOU THIS DURING OUR WORK SESSION, WHY DON'T WE JUST MATCH DUKE'S RATE? AND YOU SAID, WELL, YOU KNOW, WE COULD, UH, THAT WOULD GIVE YOU A LOT OF CUSHION, BUT YOU FELT IT WAS A MORE STRATEGIC APPROACH TO GO, THE OPTION THAT YOU HAD LAID OUT IN FRONT OF US.
UM, AS FAR AS THE COST RECOVERY, JUST FROM MY STANDPOINT, THAT'S GONE.
IT, IT'S OVER WITH WE, THAT THAT LOSS IS GONE.
I APPRECIATE YOU AS A STAFF MEMBER WANTING TO RECOVER THAT, THAT THAT'S GONE.
THE, THE PCAI HAVE A LOT OF HEARTBURN WITH THAT.
'CAUSE I TALK TO A LOT OF PEOPLE AND IT'S JUST COMPLICATED.
THEY THINK THAT THERE'S GONNA BE THIS LINE ITEM CHARGER IN THEIR BILL THAT THIS MONTH COULD BE $5 AND NEXT MONTH COULD BE $50 JUST BECAUSE OF THE UNKNOWN OF WHAT THAT FIGURE COULD BE.
UM, SO I HAVE A LITTLE BIT OF ISSUE WITH THAT AS FAR AS THE RATE.
[00:45:01]
TO MIRROR DUKE'S RATE BECAUSE WE, WE PROVIDE A BETTER PRODUCT.AND I, I THINK THAT'S VERY FAIR.
I I I THINK IT'S HARD FOR ANYBODY TO SAY, HOW ARE YOU CHARGING ME THE SAME THING THAT DUKE, DUKE CHARGES CUSTOMERS WHEN WE PROVIDE A BETTER SERVICE.
UM, I I ALSO WILL THROW THIS OUT THERE.
UH, I'M NOT SURE HOW POPULAR IT'S GONNA BE.
UM, BUT WE ALSO HAVE IN CITY SEWER AND WATER RATES AND OUT OF CITY SEWER AND WATER RATES.
UH, WHY WE DON'T HAVE THAT FOR ELECTRIC, I'M NOT QUITE SURE.
BUT I THINK IT'S SOMETHING THAT WE SHOULD LOOK AT, UH, BECAUSE THIS IS A BENEFIT OF BEING ON THE CITY OF NEW BERN.
AND IF IT SHOULD, THEN OUR TAXPAYERS SHOULD BE THE ONE THAT BENEFITS FROM THAT.
SO I THINK I'M DONE FOR A LITTLE BIT.
FATHER MCKENZIE, I FEEL THAT IT'S VERY DIFFICULT TO GO BACK TO TRY TO CHARGE SOMEONE FOR POWER THAT WE DROPPED THE BALL.
UH, I DON'T KNOW WHAT HAPPENED THERE.
UH, BUT I HOPE THAT THAT DOESN'T HAPPEN AGAIN.
AND WE NEED TO MOVE FORWARD NOW AND CONTINUE A GOOD SERVICE THAT WE ARE PROVIDING FOR THE CITIZENS.
AND, UM, I AGREE, UH, WITH THE MAYOR THAT, UH, WE SHOULD LOOK AT TWO SERVICES IN CITY AND OUT CITY LIMITS AND OUT OF THE CITY LIMITS AND PROVIDING UTILITIES.
AND I THINK THAT WOULD MAKE A DIFFERENCE.
SO, UM, THAT'S WHERE I STAND TONIGHT, THAT I'M NOT FOR CHARGING, GOING BACK, UH, TO CHARGE ANYBODY.
THAT'S, WE, WE MISSED THE BOAT THERE AND THAT'S THE BOAT THAT WE CAN'T GO BACK AND RECOVER OR RETRIEVE.
UM, UH, WE JUST CAN'T DO THAT.
I DON'T FEEL THAT IT'S RIGHT TO DO.
YOU KNOW, I'VE BEEN WANTING TO GET A RAISE SINCE I'VE BEEN ON THE BOARD AND I HAVEN'T GOT ONE YET.
WOULD YOU LIKE TO GIVE IT TO ME TONIGHT, SIR? I'M JUST TEASING YOU.
BUT, UH, THAT'S THE WAY I'M AT.
ANYONE ELSE? CHARLIE, WHAT DO YOU RECOMMEND THAT WE DO? I RECOMMEND YOU ARE THE ONE THAT HAVE SLEEPLESS NIGHTS TO COME BEFORE THIS BOARD.
ON NUMEROUS OCCASIONS FOR SEVERAL YEARS YOU'VE BEEN TALKING ABOUT OUR FAILING AGENT SYSTEMS. WE DON'T HAVE THE CAPITAL TO SUPPORT OUR SYSTEM.
WHAT DO YOU RECOMMEND THAT WE SHOULD DO? AND I LOOK AT IT AS WE HAD, WHAT, SEVEN TO EIGHT YEARS WHERE WE DIDN'T INCREASE THE RATES.
OKAY? SO THAT, THAT'S WHY WE LOST
THAT'S WHY YOU'RE ASKING TO RECOVER THOSE LOSSES.
SO WHAT ARE YOU, I'M GONNA LISTEN TO YOU BECAUSE YOU ARE THE EXPERT HERE.
I'M NOT, I I, THIS, I'M GONNA BE VERY HONEST AND I DON'T, IT'S ABOVE MY HEAD.
OKAY? SO I'M, I I TRY TO UNDERSTAND, AND YOU'VE MADE IT VERY CLEAR, AND WHEN WE HAD OUR WORK SESSION THAT WAS PRESENTED TO US IN A VERY CLEAR, PRECISE WAY FROM THE COMPANY THAT YOU HIRED IN TO DO SO.
SO WHAT DO YOU RECOMMEND THAT WE DO THAT'S GONNA PUT US ON TRACK? SO WE WON'T BE DAYS WITHOUT CASH ON HAND WHERE WE'LL BE ABLE TO, IF A STORM COMES THROUGH HERE, WE'RE GOING INTO HURRICANE SEASON, A STORM COMES THROUGH HERE, WE WANNA BE PREPARED, WE WANNA BE READY.
SO WHAT DO YOU NEED FROM US? WHAT DO YOU SUGGEST? I, I RECOMMEND THE RATE PLAN OF 5% INCREASE IN FISCAL YEAR 25, 26, AND 27 BE ADOPTED TONIGHT.
AND THE PCA RIDER AND THE REVENUE RECONCILIATION ADJUSTMENT RIDER.
UM, I WOULD LIKE TO, UH, ADDRESS EACH OF THESE QUESTIONS SEPARATELY.
AND IF YOU NEED A, WE DON'T HAVE A MOTION, BUT I, I WOULD LIKE TO, UH, DIVIDE THE QUESTION AHEAD OF TIME BETWEEN THE THREE OF THESE IF WE'RE GONNA MAKE A DECISION TONIGHT.
YOU ELSE ELSE COMMENTS BEFORE WE MOVE ON TO SOME ACTION? MAYOR, I'LL MAKE A, A MOTION, UM, TO ADOPT AN ORDINANCE TO ESTABLISH THE RATES FOR CONSUMPTION OF ELECTRICITY EFFECTIVE JULY 1ST, 2024.
[00:50:01]
SIX.WE'RE GONNA VOTE ON THESE SEPARATELY, OR YOU CAN VOTE ON THEM TOGETHER ONLY IF THE VOTE IS UNANIMOUS.
SO YOU MAY WANT TO TAKE THEM ITEM BY ITEM.
AND THAT WAS YOUR MOTION, SIR? NO.
DO WE HAVE A SECOND ON HIS MOTION? SECOND.
ANY FURTHER DISCUSSION ON SIX A? OKAY, LET'S HAVE A ROLL CALL STARTING WITH ALDERMAN ROYAL.
BRISSON, YOU SAID YOU HAD SOME COMMENTS ABOUT EACH ONE OF THESE.
DO YOU WANT TO OH, I, I JUST, UH, HAVE MADE THE RECOMMENDATION TO TREAT THESE SEPARATELY.
SO BEFORE WE MOVE ON TO B AND C, UM, WE PROBABLY NEED TO ADDRESS A, UM, SO FOR THE FOUR NOS, UM, THAT DID NOT WANT TO APPROVE THE RECOMMENDED RATE INCREASE OF 5% THIS YEAR, 5% NEXT YEAR AND 5% THE YEAR AFTER.
UM, ANY RECOMMENDATIONS FOR THE RATE ITSELF? I'VE STATED MINE, MINE IS TO MATCH DUKE ENERGIES WITHIN ANY LEGAL RAMIFICATIONS THAT WE CAN IF WE, IF WE MATCHED, UM, DUKE'S ENERGY'S RATE, WOULD THAT FILL THE VOID? I NEED CLAR.
UM, ARE WE MATCHING THEIR RATES AND THEIR RIDERS? 'CAUSE JUST ON THE I I'M LET, YEAH, LET ME, THAT'S A GOOD QUESTION BECAUSE LOOK AT MATCHING THE COST.
WHEN YOU LOOK AT KILOWATT HOURS, THAT DOESN'T TELL THE WHOLE STORY, CORRECT? 'CAUSE I HAVE A $53 STORM RECOVERY FEE.
BUT WHEN YOU FACTOR ALL OF THOSE IN AND YOU BREAK THAT DOWN BY KILOWATT HOURS, IT PUTS YOU AT THE 16 CENT PER KILOWATT HOURS THAT DUKE IS AT.
CORRECT? SO IF YOU GET US TO 16 CENT PER KILOWATT HOURS, I WOULD SUPPORT THAT.
NO RIDERS, NO ADJUSTMENTS, NO PCA, NO COST RECOVERY, WHATEVER DUKE IS.
BECAUSE WHEN, WHEN I'M OUT IN THE COMMUNITY AND I'M TALKING TO PEOPLE, IT'S VERY HARD FOR ME TO EXPLAIN TO THEM THAT WE'RE CHEAPER THAN DUKE WHEN THEY'RE LOOKING AT TWO DIFFERENT BILLS AND THEY'RE LOOKING AT THEIR NEIGHBOR ACROSS THE STREET THAT, THAT, THAT THEY MENTIONED THAT HAD POWER THAT, OR YOU HAD POWER, YOU WERE ON CITY OF NEW VERNON AND YOU'RE LOOKING AT YOUR NEIGHBOR'S BILL ACROSS THE STREET.
THEY DIDN'T HAVE POWER THIS WEEKEND 'CAUSE DUKE WAS OUT FOR WHATEVER REASON.
YOU REALLY HAVE TO ADD ALL THAT INFORMATION UP.
BUT THE MESSAGING FROM THE CITY OF NEW BERN, FOR THE REALTORS THAT USED TO HAVE CITY OF NEW BERN LISTED ON THE MLS, THAT IT WAS CITY OF NEW BERN POWER.
SO MAKE SURE YOU DON'T SELL THIS HOUSE BECAUSE IT'S GONNA HURT THE HOMEOWNER.
WE, WE, WE'VE ELIMINATED THAT, UM, INFORMATION.
NOW WE'RE, WE'RE ON PAR WITH DUKE.
WHATEVER DUKE CHARGES, THAT'S WHAT WE CHARGE.
THERE'S NO DIFFERENCE IN WHETHER YOU'RE A CITY OF NEW BERN CUSTOMER OR A DUKE CUSTOMER OTHER THAN CITY OF NEW BERN OFFERS BETTER SERVICE.
SO THEN WOULD BE ADVISABLE TO ASK CHARLIE TO GO BACK TO SEE IF WE RAISE THIS RATE LIKE THIS, WOULD THIS FIX ITS PROBLEM AND THEN REPORT BACK TO US? I MEAN, DO WE HAVE A CLUE WHETHER OR NOT THIS WOULD EVEN FIX THE PROBLEM? I I THINK WE NEED TO ALLOW STAFF TO GO BACK AND, AND, AND EVALUATE THAT.
AND, AND ONE THING THAT WE ALSO NEED TO REMEMBER IS, UM, ELECTRICITY'S PASSED ON TO RIDERS TO US THAT WE'RE PAYING FOR RIGHT NOW.
WE'VE GOT OUR FIRST BILL IN MAY, AND SO WE CANNOT AFFORD TO PAY THAT.
THOSE RIDERS RIGHT NOW, WE HAVE TO COVER THAT COST.
IT HAS TO BE PASSED ON TO THE CUSTOMER.
AND SO THIS, THIS IS, UH, SOMETHING THAT WE NEED TO TAKE CARE OF AS SOON AS POSSIBLE.
CHARLIE CAN BRING THIS BACK AT THE NEXT MEETING FOR, FOR, UM, TO DISCUSS WHAT YOU'RE TALKING ABOUT.
YEAH, WE CAN ALWAYS HAVE A NO, WE CAN ALWAYS A SPECIAL CALL.
I CAN TELL YOU A LITTLE QUICK MATH.
UM, IF JUST ON THE RESIDENTIAL SIDE, IF WE RAISED, UM, TO DUKE'S RATE IN JULY, IT'D BE A $40 INCREASE TO ALL OUR RESIDENT ON AVERAGE AND THEN ANOTHER $7 INCREASE IN 2027.
THERE'S THINGS THAT, THAT, THERE'S SOME PITFALLS ALONG THE WAY THAT I'LL HAVE TO PAY ATTENTION TO THAT IF THAT'S TRULY WHAT YOU WANT TO DO.
AND THAT'S WHEN WE GET INTO DIFFERENT RATE CLASSES.
UM, WE HAVE DEMAND COMPONENTS AND WE HAVE OTHER COMPONENTS IN THOSE BILLS.
SO I'LL HAVE TO GET A LITTLE, UM, UM, BIT TECHNICAL AND, UH, AND SEE HOW IT, IT SHAKES OUT IF I TAKE ME A COUPLE MONTHS TO, TO WORK ALL THOSE DETAILS OUT THROUGH ALL THOSE DIFFERENT RATES.
WELL, I DON'T THINK YOU HAVE A COUPLE MONTHS
[00:55:01]
TO FIGURE THAT OUT.SO THE BOARD NEEDS TO MAKE A DECISION ON SOMETHING AND THEN YOU COULD WORK ON THAT.
BUT THAT'S THE REASON I BROUGHT THIS UP DURING THE WORK SESSION.
THIS WAS MY SUGGESTION, BUT I DON'T THINK ANYBODY ELSE CHIMED IN THAT THEY HAD ANY INTEREST IN THAT.
SO IF IT DIDN'T GO ANYWHERE, SO YOU DIDN'T HAVE TIME OR NO REASON TO PREPARE ANY INFORMATION, CHARLIE, BEFORE YOU SIT DOWN, GIVEN THE VOTE THAT WAS, UM, JUST TAKEN ON ITEM A, DOES IT MAKE SENSE TO TAKE A VOTE ON ITEM B? SURE.
WE, WE CAN STILL, UM, BENEFIT FROM A POWER COST ADJUSTMENT CHARGE.
IT WOULD PROBABLY, UM, HELP RECOVER THOSE COSTS GOING FORWARD.
BUT IT, IT WELL GIVE, GIVEN THAT THEN I'LL MAKE A MOTION, UM, TO APPROVE AN ORDINANCE FOR A POWER COST ADJUSTMENT, RIGHT OR APPLICABLE TO THE ELECTRIC RATE ORDINANCES FOR CONSUMPTION OF ELECTRICITY AFFECTED JULY 1ST, 2024.
DO WE HAVE A SECOND ON SIX B? SECOND? MOTION IS SECOND.
ANY FURTHER DISCUSSION? HEARING NONE, LET'S HAVE A ROLL CALL STARTING WITH ALDERMAN ASTOR.
THREE, FOUR AS WELL? THAT'S CORRECT.
SO I WOULD, I WOULD LIKE TO SEE WHAT THE FIGURES ARE GOING TO BE AND WHETHER OR NOT THAT IF WE MATCH OUR EITHER A PENNY UNDER DUKE'S KILOWATT HOUR, IF THAT WOULD RESOLVE A HIGHER ISSUE.
I MEAN, IT'D BE NICE IF WE COULD SAY WE'RE A PENNY CHEAPER KILOWATT HOUR THAN DUE.
IF WE GOT A CUSTOMER THAT'S GOT A CHOICE WE'LL GET WITH STAFFING.
WE'LL, WE'LL DEFINITELY BE BRINGING SOMETHING BACK TO YOU.
AND IF YOU NEED TO WORK ON THIS BEFORE THEN I'M ALSO IN FAVOR OF HAVING A SPECIAL MEETING TO RESOLVE THIS PROBLEM AS SOON AS CHARLIE CAN GET THE FACTS TOGETHER FOR US.
UM, SO, SO WITH ANY RATE INCREASE, WE DO HAVE TO HAVE A PUBLIC HEARING.
SO IT WILL BE A CERTAIN PERIOD OF TIME ON THIS.
SO THAT'S MY, WAS MY QUESTION FOR THE ATTORNEY.
UM, IF THE BOARD HYPOTHETICALLY FOUND OUT NEXT TUESDAY, GIVE CHARLIE A WEEK, UM, NEXT TUESDAY THAT HE'S GOT SOMETHING TO PRESENT.
UM, THE EARLIEST WE COULD HAVE A MEETING WOULD BE 48 HOUR NOTICE.
BUT WITH THE PUBLIC HEARING, HOW DOES THAT COME INTO PLAY? THE STATUTE REQUIRES THAT WE ADVERTISE FOR TWO CONSECUTIVE WEEKS.
TWO WEEKS, AND WE HAVE TO LIST WHAT THE PROPOSED RATE CHANGE MIGHT BE IN THAT NOTICE.
ALRIGHT, SO IN THE SPIRIT OF, UM, I'M TRYING TO BE HELPFUL, AS THE ATTORNEY LIKES TO SAY, UM, CHARLIE, IF WE WERE TO ADOPT A 5% RATE INCREASE TONIGHT, WHAT WOULD THAT 5% DO FOR YOU ON YOUR $3 MILLION DEFICIT THAT YOU'RE FACING? I'M TRYING TO GET YOU SOMETHING, I'M TRYING TO FIGURE OUT SOMETHING HERE.
I ANTICIPATE THE, UH, 5%, UM, INCREASE BY THE END OF FISCAL YEAR 2025 WOULD GENERATE $2.6 MILLION.
AND THEN APRIL NEXT YEAR, THE DEBT SERVICE COMES OFF? NO SIR.
PRO BEFORE THAT, UM, THEY'LL PROB THEY'LL MOST LIKELY BE ANOTHER POWER COST RIDER, UM, IN OCTOBER, AND THEN IN JULY OF 2025, THE DEBT SERVICE ROLLS OFF.
AND HOW MUCH WAS THE LATEST RIDER THAT THEY PLACED ON US? THEY SPREAD THAT RIDER OUT OVER TWO YEARS.
I EXPECT THE NEXT RIDER TO BE SPREAD OUT OVER ANOTHER TWO YEARS.
SO IT'S GONNA BE SOMEWHERE AROUND $3 MILLION
[01:00:01]
A YEAR.PERCENT OF WHAT? SO IF 5% GIVES YOU $2.6 MILLION, I'M JUST SAYING TO GET TO $3 MILLION, WE'RE LOOKING AT CLOSE TO 6%.
AND THIS ORDINANCE IS THROUGH JULY.
I'M, I'M SORRY, THROUGH JUNE 30TH NEXT YEAR.
IS THAT WHAT THIS RATE WOULD DO? THE RATE THAT I'M PROPOSING? YEAH.
YES, IT WOULD BE EFFECTIVE JULY 1ST AND THEN THEN IT WOULD BE THE NEXT INCREASE WOULD OCCUR THE NEXT YEAR.
SO WHAT, WHAT I WOULD BE WILLING TO DO, BECAUSE OBVIOUSLY YOU CAN'T CONTINUE TO OPERATE IN THE RED, UM, I WOULD BE OKAY WITH A 6% RATE INCREASE FOR THIS UPCOMING PHYSICAL YEAR.
I'M NOT TALKING ABOUT NEXT YEAR, I'M NOT TALKING ABOUT THE YEAR AFTER THAT.
IT GIVES YOU TIME TO WORK ON SHARPENING YOUR PENCIL AND COME UP WITH SOME NUMBERS.
UM, THAT, THAT'S WHAT I WOULD BE OKAY WITH UNTIL WE GET TO A POINT WHERE WE HAVE A LITTLE BIT MORE CLARITY AROUND SOME OF THIS.
SO COULD YOU OPERATE WITH THAT BETTER THAN HE CAN OPERATE WITH NOTHING.
I, I
SO MAYOR, IF THERE IS ANY APPETITE FOR THE BOARD TO RECONSIDER THE ACTION, UH, RELATED TO ITEM NUMBER SIX A, YOU WOULD ENTERTAIN A MOTION TO RECONSIDER.
OKAY? AND THAT MOTION WOULD HAVE TO BE MADE BY SOMEONE WHO VOTED IN THE MAJORITY.
SO BE MADE BY WHOM? WHAT? I CAN'T HEAR YOU.
SOMEONE WHO VOTED IN THE MAJORITY.
SO SOMEONE WHO VOTED ON THE PREVAILING SIDE OF THE PREVIOUS MOTION AND THE MAYOR DOESN'T MAKE MOTIONS.
SO THAT LEAVES IT TO ALDERMAN, BRISON, KINZIE OR ASTOR.
WELL, I WANT CLARITY AGAIN, MR. BOUCHARD, LET ME ASK YOU, 6% WOULD PROVIDE WHAT YOU ARE TALKING $3 MILLION IN THE, UH, POWER COST ADJUSTMENT.
I'M, I'M NOT THAT QUICK ON MY FEET WITH, WITH MATH IN MY HEAD.
UM, BUT JUST SPECULATING IT MIGHT MOVE IT ANOTHER QUARTER MILLION DOLLARS.
SO WE MIGHT BE, YOU KNOW, SHY OF 3 MILLION SOMEWHERE AROUND THERE.
MY, MY INTENTION WITH THE 6% WAS TO COVER THE INCREASED COST THAT WE'RE LOSING RIGHT NOW.
YOU'RE LOSING 3 MILLION A MONTH OR 3 MILLION A YEAR.
6% SHOULD GET YOU BACK TO BREAK EVEN FROM THAT STANDPOINT.
YOU'RE NOT RECOVERING ANYTHING.
YOU'RE NOT PUTTING MORE DAYS CASH ON HAND IN THE BANK.
I RECOGNIZE ALL THAT, BUT I'M, I'M TRYING TO BUY SOME TIME TO KEEP US FROM HAVING TO WAIT TWO WEEKS TO COME BACK TO A DECISION THAT WE'RE PROBABLY GONNA LAND ON RAISING RATES ANYWAY.
UM, IT'S JUST WHAT FLAVOR OF WHAT THAT'S GONNA BE.
SO I'M TRYING TO GIVE YOU SOMETHING TONIGHT SO YOU CAN WORK WITH AND THEN GET THE WORK QUICKLY ON.
SOME ALTERNATIVES MIGHT BACK IN THE ENVELOPE MATH.
IT'S CLOSE ENOUGH FOR GOVERNMENT WORK, I THINK.
AND I'LL GO AHEAD AND MAKE THE MOTION TO RECONSIDER, UH, SIX A ORDINANCE TO ESTABLISH RATES OF CONSUMPTION OF ELECTRICITY.
ANY FURTHER DISCUSSION? HEARING NONE.
LET'S HAVE A ROLL CALL STARTING WITH ALDERMAN KENZIE.
MOTION CARRIES NOT WHAT YOU ASKED FOR, BUT IT'S SOMETHING CHARLIE.
UM, WE GOT OUR WORK TO DO WORK CUT OUT.
UM, THERE'S A LOT OF MARKETING, THERE'S A LOT OF MESSAGING, THERE'S A LOT OF EDUCATION THAT WE ALL NEED TO DO WITH OUR CUSTOMERS.
AND, UM, CAN WE REQUIRE CUSTOMERS TO BE ON LOAD MANAGEMENT? I DON'T THINK WE CAN.
I THINK THE ATTORNEYS LOOKED AT THAT IN THE PAST.
SAY DO WE HAVE AN ORDINANCE THAT REQUIRES IT FOR NEW CONSTRUCTION? YES.
WE CAN WALK AWAY FROM THAT NEW CONSTRUCTION AND THEY CAN DISCONNECT IT.
BUT IF, BUT THAT TWO-WAY SWITCH, YOU CAN TELL THAT WE COULD, WE COULD, WE, WE COULD DETERMINE THAT AND THEN WE COULD STOP THEIR, THEIR CREDIT, THEIR $5 CREDIT.
BUT ON THE ONE-WAY, SWITCHES, WE CAN'T, WE, BUT
[01:05:01]
CAN'T WE REQUIRE 'EM TO HOOK IT BACK UP.CAN'T WE REQUIRE IT TO BE HOOKED BACK UP? I MEAN, IF THEY ONLY IT ORDINANCE READS THAT JUST HAS TO BE INSTALLED, THEY CAN COME BACK LATER AND SAY THEY WANT IT REMOVED.
I THINK THERE'S SOME, SOME UPDATES AND SOME ORDINANCE THAT WE NEED TO LOOK AT.
I THINK THERE NEEDS TO BE A COST BENEFIT ANALYSIS RUN ON REPLACING ALL THE ONE-WAY SWITCHES THAT WE HAVE OUT THERE.
IF WE REPLACE 'EM WITH TWO-WAY AND WE'RE GETTING A HUNDRED PERCENT PARTICIPATION, WHAT DOES ALL THAT LOOK LIKE? SO, AND MR. MAYOR, JUST TO MAKE SURE THAT THE RECORD IS CLEAR, THE MOTION, UM, THAT ALDERMAN BRISSON ME WAS FOR 6% FOR FISCAL YEAR.
FOR THE NEXT FISCAL YEAR OR FOR THE NEXT THREE YEARS? NO, JUST THIS FISCAL YEAR.
I MEAN, SORRY, I'M LOOKING AT THE WRONG ONE.
EVERYBODY UNDERSTANDS THAT WAS JUST THE ONE YEAR DECISION, RIGHT? YES.
THAT BIAS SOME TIME FOR CHARLIE TO COME BACK TO WORK VERSUS US HAVING TO HAVE A SPECIAL EMERGENCY MEETING AND POSTING IT FOR TWO WEEKS.
IT JUST GIVES US SOON SOME TIME.
MORGAN, CAN YOU CHECK ARE THE VOLUMES DOWN ON THE SPEAKERS? BECAUSE IT'S HARD TO HEAR.
IT WAS EVEN HARD TO HEAR, CHARLIE.
UH, I'M GOING TO ASSUME THAT WE'RE NOT GOING TO REVISIT B AND C.
IS THAT SAFE TO SAY THERE'S NO ACTION TAKEN ON? C.
OKAY, SO, WELL, I, I'D LIKE TO REVISIT B, BUT I DON'T THINK ANYBODY ELSE OKAY.
UM, DO YOU WANT TO, 'CAUSE I DON'T THINK WE WOULD VOTE ON THE SAME THING AGAIN.
THERE WOULD HAVE TO BE SOME SORT OF CHANGE MADE.
A PERSON WHO VOTED IN THE MAJORITY WOULD NEED TO MAKE THE MOTION TO RECONSIDER, UM, SIX B.
SO DID ANYONE WHO VOTED AGAINST SIX B WANT TO REVISIT THAT? I MASTER WHAT YOU VOTED.
OKAY, SO THERE'S A NO ON SIX B, SO WE DID NOT TAKE ANY ACTION ON SIX C.
SO IT'S OPEN FOR DEBATE AND DISCUSSION.
IF, IF YOU WANT TO TROT ALDERMAN PRILL.
NO, UM, NO, I'M, I'M NOT COMFORTABLE WITH, UH, ITEM SIX C TO BEGIN WITH, SO.
I HAVE NO MOTION TO MAKE ON THAT.
DOES ANYONE WANT TO TAKE ACTION ON ITEM SIX C? IF NOT, WE'LL MOVE ON.
MOVING ON TO ITEM NUMBER SEVEN.
[7. Conduct a Public Hearing on the 2024 CDBG Annual Action Plan, Five- Year Consolidated Plan, and Analysis of Impediments to Fair Housing Choice.]
THANK YOU CHARLIE.UH, CONDUCT A PUBLIC HEARING ON THE 2024 CDBG ANNUAL ACTION PLAN.
FIVE YEAR CONSOLIDATED PLAN AND ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE.
WELL, GOOD EVENING, MAYOR AND BOARD OF ALDERMAN.
IS THIS MY CLICKER HERE? OH, WAIT A MINUTE.
WHAT'S HAPPENING? OKAY, TONIGHT I STAND BEFORE YOU ALL TO PRESENT THE COMMUNITY DEVELOPMENT BLOCK GRANT FIVE YEAR CONSOLIDATED PLAN 2024 ANNUAL ACTION PLAN AND THE ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE.
UM, THERE'S THREE COMPONENTS HERE, BUT ALL GET SUBMITTED TO HUD AT ONE TIME.
THIS IS JUST AN OVERVIEW OF WHAT I PLAN TO PRESENT TO YOU ALL TONIGHT, BEGINNING WITH THE DEFINITION AND PURPOSE.
THE CITY'S FIVE YEAR CONSOLIDATED PLAN IS A FIVE YEAR PLAN THAT LOOKS AT WHAT WE NEED TO FOCUS ON FOR COMMUNITY DEVELOPMENT OVER A FIVE YEAR PERIOD.
THE ANNUAL ACTION PLAN IS A SUB COMPONENT TO THE FIVE YEAR PLAN.
WE SUBMIT OUR FIVE, I'M SORRY, WE SUBMIT OUR ANNUAL ACTION PLAN EACH YEAR.
AND THE ANNUAL ACTION PLAN IS WHAT WE SUBMIT WHEN WE RECEIVE OUR ENTITLEMENT FUND FROM, UM, THROUGH THE CDBG GRANT.
SO, TO GIVE A TIMELINE OF THE COMMUNITY, I'M SORRY, COMMUNITY ENGAGEMENT FOR THE DATA COLLECTION FOR THESE PLANS.
YOU ALL REMEMBER YOU WERE INTERVIEWED, UM, BY OUR CONSULTANTS.
WE DISTRIBUTED SURVEYS BACK IN 2023 OCTOBER.
UM, WE CONDUCTED AGENCY INTERVIEWS AND WE ALSO HELD A COMMUNITY NEEDS HEARING IN FEBRUARY TO GET THE DATA FOR THESE PLANS.
TO GIVE YOU ALL SOME HIGHLIGHTS FROM THE FIVE YEAR CONSOLIDATED PLAN.
THE LARGEST HOUSING PROBLEM IN THE CITY OF NEW BERN IS HOUSING AFFORDABILITY, UM, HEAVILY IMPACTED BY HURRICANE FLORENCE.
THE MOST IMMEDIATE NEEDS OF PUBLIC HOUSING RESIDENTS REMAINS EMPLOYMENT TRAINING AND TRANSPORTATION.
THE POINT IN TIME COUNT SURVEY WAS DONE, UM, COUNTING A TOTAL OF 43 HOMELESS PERSONS AND 38 HOMELESS HOUSEHOLDS IN CRAVEN COUNTY.
MORE HIGHLIGHTS FROM THE PLAN INCLUDE THERE ARE CURRENTLY 8,279 OWNER OCCUPIED HOUSING UNITS, 5,903 RENTER OCCUPIED HOUSING UNITS AND 2083 VACANT UNITS IN THE CITY OF NEW BERN.
ALSO, AFFORDABLE SENIOR HOUSING REMAINS A NEED.
THE CITY OF NEW BERN INTENDS TO ADDRESS HOUSING AFFORDABILITY WITH CONSTRUCTION OF NEW AFFORDABLE HOUSING IN THE YEARS TO COME.
WE ALSO IDENTIFY SIX PRIORITIES, UM, THROUGH OUR DATA COLLECTION PROCESS.
THOSE RELATE TO HOUSING, HOMELESSNESS, OTHER
[01:10:01]
SPECIAL NEEDS, COMMUNITY DEVELOPMENT, ECONOMIC DEVELOPMENT, AND ADMINISTRATION AND PLANNING.FOR THESE PRIORITIES, WE DEVELOPED SOME STRATEGIES CENTERED AROUND FOR HOUSING, HOME OWNERSHIP, HOUSING CONSTRUCTION, HOUSING, REHABILITATION, AND RENT AND UTILITY ASSISTANCE.
FOR OUR HOMELESSNESS PRIORITY, WE IDENTIFIED STRATEGIES RELATED TO HOUSING OPERATIONS AND SUPPORT PREVENTION AND RAPID REHOUSING.
FOR OTHER SPECIAL NEEDS PRIORITY, WE IDENTIFY STRATEGIES RELATED TO HOUSING, SOCIAL SERVICES, AND ACCESSIBILITY.
FOR THE COMMUNITY DEVELOPMENT PRIORITIES, WE DEVELOP EIGHT STRATEGIES RELATED TO INFRASTRUCTURE, COMMUNITY FACILITIES, PUBLIC SERVICES, FOOD PROGRAMS, AND PUBLIC TRANSIT, DEMOLITION AND CLEARANCE, ARCHITECTURAL BARRIERS, AND PUBLIC SAFETY.
FOR THE ECONOMIC DEVELOPMENT PRIORITY, WE DEVELOPED STRATEGIES RELATED TO EMPLOYMENT, FINANCIAL ASSISTANCE, AND A REDEVELOPMENT PROGRAM.
LASTLY, FOR OUR ADMINISTRATION PLANNING AND MANAGEMENT PRIORITY, WE DEVELOPED TWO STRATEGIES RELATED TO OVERALL COORDINATION AND FAIR HOUSING.
THIS ACTUALLY CONCLUDES THE FIVE YEAR CONSOLIDATED PLAN PORTION OF THE PRESENTATION.
SO NOW I'LL GO INTO THE 2024 ANNUAL ACTION PLAN.
THAT IS WHERE WE HAVE RECEIVED OUR ALLOCATION FROM HUD.
THEY HAVE RELEASED THAT TO US, UM, FOR US TO APPLY.
AND THIS IS WHAT WE PROPOSE TO DO.
UH, WE, THIS IS OUR CDBG ADMINISTRATION LINE.
I'LL PAUSE FOR YOU ALL TO REVIEW THAT.
THIS IS OUR DEMOLITION AND CLEARANCE LINE.
THIS IS ACTUALLY A MULTI-YEAR ACTIVITY I WANNA HIGHLIGHT.
UM, IN 2023, YOU ALL APPROVED, UM, DEMOLITION AND CLEARANCE, AND WE HAVE A LIST OF PROPERTIES WHERE WE'VE ALREADY CLEARED, I BELIEVE WEST A STREET.
UM, SO THIS WILL BE A CONTINUATION OF WHAT WE'RE ALREADY DOING.
STREET AND SIDEWALK IMPROVEMENTS, THAT'S A NEW ONE, UM, THAT WE'RE PROPOSING FOR THIS YEAR.
THAT WILL BE DONE IN THE FIVE POINTS AREA, SPECIFICALLY, UM, NEAR STANLEY WHITE RECREATION CENTER.
IT'S PERFECT TIMING FOR US TO GET SOME SIDEWALK IMPROVEMENTS GOING OVER THERE.
ALSO ALONG OUR BROAD STREET CORRIDOR, WE'VE NOTICED THAT WE NEED SOME REPAIRS AND THINGS DONE OVER THERE.
SO IN SUMMARY, THIS IS WHAT WE ARE PROPOSING.
I'LL, I'LL PAUSE FOR YOU TO REVIEW THE BUDGET SUMMARY.
SO WE HAVE PROGRAM ADMINISTRATION AT $58,342, DEMOLITION AND CLEARANCE AT $65,000 AND STREET AND SIDEWALK IMPROVEMENTS FOR A HUNDRED SIXTY EIGHT THREE HUNDRED SEVENTY $2.
AND THAT EQUALS OUR TOTAL ALLOCATION OF $291,714.
THAT CONCLUDES OUR 2024 ANNUAL ACTION PLAN PORTION.
AND NOW I WILL MOVE TO THE ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE.
SO WE HAVEN'T DONE THIS IN A WHILE.
UM, HUD REQUIRES THAT EVERY SO OFTEN WE DO THIS AND IT JUST GIVES US A BETTER LOOK AT WHAT'S REALLY GOING ON WITH HOUSING IN OUR CITY.
UM, HUD PROVIDES A DEFINITION.
IT'S SIMPLY PUT, IT IS JUST THE ABILITY OF PERSONS REGARDLESS OF THEIR RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN, UM, INCOME LEVEL TO HAVE AVAILABLE TO THEM THE SAME HOUSING CHOICES.
THE FUNDAMENTALS OF THIS ANALYSIS.
WE LOOKED AT THE SALE OR RENTAL OF DWELLINGS.
UM, THE PROVISION OF HOUSE BROKERAGE SERVICES IN OUR COMMUNITY, PROVISION OF FINANCIAL ASSISTANCE, PUBLIC POLICIES AND ADMINISTRATIVE POLICIES THAT AFFECT, UM, THE DETERMINATION OF SELECTING HOUSING.
SO, HIGHLIGHTS FROM THIS ANALYSIS SHOW THAT THE MAJORITY OF HOUSING UNITS IN THE, IN NEW BERN ARE SINGLE FAMILY DETACHED, COMPRISING 63.7% OF ALL HOUSING UNITS.
AFFORDABILITY IS AN IMPORTANT COMPONENT OF FAIR HOUSING AS INCOME DISPARITIES APPEAR BETWEEN DIFFERENT RACIAL, ETHNIC, GENDER, AGE, AND OTHER GROUPS.
POPULATIONS EXPERIENCING HOME EXPERIENCING HOUSING PROBLEMS, DISPROPORTIONATELY ARE OFTEN THOSE OF RACIAL OR ETHNIC MINORITIES.
MORE HIGHLIGHTS FROM THE ANALYSIS SHOW.
THERE, THERE DOES NOT APPEAR TO BE ANY MAJOR UNIFORM TRENDS REGARDING SEGREGATION IN THE CITY OF NEW BERN.
THE NEW BERN HOUSING AUTHORITY RECOGNIZES THE NEED FOR ACCESSIBLE AND VISIBLE HOUSING UNITS IN THE CITY.
DISABILITY HAS BECOME THE MOST COMMON PROTECTED CLASS BASIS FOR FAIR HOUSING COMPLAINTS.
LASTLY, DISABILITY IS THE MOST COMMON HOUSING COMPLAINT IN THE CITY OF NEW BERN.
UM, FROM 2014 TO 2023, THERE WEREN'T MANY COMPLAINTS, BUT WHEN THERE WERE COMPLAINTS, IT WAS RELATED TO DISABILITY.
[01:15:01]
IN SUMMARY, THE CITY OF NEW BERN WILL WORK TO ADDRESS OUR NEEDS IN THE FIVE YEAR PLAN.AND HOW WE DO THIS IS BY ACTIVELY SUBMITTING THE ANNUAL ACTION PLAN EACH YEAR.
WHEN WE BRING THAT BEFORE YOU ALL, THAT'S HOW WE ADDRESS WHAT WE PUT IN THE BIG PLAN.
UH, WE WILL CONTINUE TO SELECT PROJECTS THAT ENSURE TIMELINESS TO MAKE SURE WE CONTINUE TO RECEIVE OUR ENTITLEMENT.
SO THESE PLANS ARE CURRENTLY ON DISPLAY.
THEY REMAIN ON DISPLAY UNTIL JULY 15TH.
A RESOLUTION WILL COME BACK BEFORE YOU ALL ON JULY 23RD.
WE HAVE TO PRESENT AND APPROVE THESE IN SEPARATE MEETINGS SO WE CAN SATISFY THE REQUIREMENT OF THEM BEING ON DISPLAY FOR 30 DAYS AT THIS TIME.
I WILL TAKE ANY QUESTIONS YOU ALL MAY HAVE, AND THANK YOU SO MUCH.
ANY QUESTIONS? YEAH, I GOT A QUESTION.
THE $58,000 FOR AD ADMINISTRATION FEES YES.
IS THAT FOR HIRING CONSULTANTS? THAT IS A PART OF OUR CONSULTANTS, YEAH.
THAT IS, THAT DOES GO TOWARDS THAT.
THE CONSULTANTS, UM, THEY, THEY PLAY A KEY FACTOR INTO COMPILING THESE PLANS.
THESE PLANS ARE WHAT ABOUT 150 PAGES.
UM, THEY ALSO ENSURE THAT WE STAY IN ALIGNMENT WITH, UM, WHAT HUD REQUIRES US TO DO FOR THE CDBG GRANT.
SO, UM, YES, THAT MONEY DOES GO TOWARDS.
ABOUT HOW MUCH ARE YOUR CONSULTANT FEES? IT VARIES.
UM, SOMETHING THAT COMES TO MY MIND NOW, I'VE SEEN WHERE ONE PLAN COULD BE MAYBE $12,000.
UM, AND IN A, IN A YEAR'S TIME, WE HAVE SEVERAL THINGS THAT WE'RE PROPOSING BECAUSE WE'RE COMING FORTH WITH AMENDMENTS TO OUR PLANS IF WE HAVE LEFTOVER MONEY.
WE ALSO COME FORTH WITH OUR ANNUAL ACTION PLAN EACH YEAR.
THEY ALSO PROVIDE TECHNICAL ASSISTANCE, UM, WHEN WE SUBMIT THINGS CONCERN, OUR CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT.
THEY ALSO HELP WITH IDIS MANAGEMENT.
THAT'S THE SYSTEM WHERE WE GO IN AND SUBMIT ALL OF OUR PLANS.
THEY PLAY A KEY FACTOR IN MAKING SURE THAT WE SUBMIT EVERYTHING THE CORRECT WAY.
ANY OTHER QUESTIONS? YEAH, I HAVE A QUESTION.
UM, MS.
OR IS THIS A CITYWIDE PROGRAM? YEAH, SO WE LOOK, WE, SO WE HAVE TO SPEND THE MONEY IN A LOW TO MODERATE INCOME AREA AND, UH, THROUGH ASSESSING THE DIFFERENT LOCATIONS, IT, IT SEEMED TO BE THE BEST LOCATION FOR THIS YEAR'S ALLOCATION.
SO HAVE YOU ALREADY SELECTED ANY STREETS AND SIDEWALK AREAS? UM, WE'RE LOOKING AT THE STANLEY WHITE, UH, THE AREA OVER THERE BY STANLEY WHITE AND THE BROAD STREET CORRIDOR.
I THINK IT'S STILL, WE HAVEN'T MADE ANY HARD DECISIONS YET.
UM, BUT WE WERE LOOKING AT THOSE AREAS AND WE'VE BEEN IN CONVERSATION WITH OUR PUBLIC WORKS DEPARTMENT.
I'LL JUST MAKE A COMMENT THAT I, I LIKE THE THREE ITEMS THAT YOU HAVE FOR THIS YEAR BECAUSE THEY'RE ALL PRETTY MUCH WITHIN OUR CONTROL.
UH, WHEREAS WE'RE NOT DEPENDING ON, YOU KNOW, A A A BOX BEING CHECKED ON SOME FORM THAT SOMEBODY CAN SAY THAT'S NOT ELIGIBLE.
BECAUSE WE'VE HAD THAT A LOT IN THE PAST WHERE YOU'VE COME TO US AND SAID, HEY LOOK, WE HAD DESIGNATED THIS FUNDING FOR THIS ASPECT, BUT WE CAN'T DO THAT.
WE'VE GOTTA DO SOMETHING ELSE.
AND WE'VE HAD TO BACK UP AND PUNT.
SO I LIKE THE FACT THAT THESE THREE ITEMS ARE THINGS THAT, THAT PRETTY MUCH WE CAN DO AND MAKE IT HAPPEN AND NOT HAVE THAT ISSUE.
WELL, I WANT TO THANK YOU ALL AND I, I ALSO WANNA NOTE THAT BECAUSE THIS IS A FIVE YEAR PLAN, I JUST WANT EVERYONE TO REMEMBER THAT EACH YEAR WE COME FORTH WITH THE ANNUAL ACTION PLAN IS TO ADDRESS DIFFERENT THINGS WE LIST IN THAT, UM, PLAN.
SO IF WE DON'T TACKLE SOMETHING IN ONE YEAR, I ALWAYS TELL RESIDENTS, JUST HOLD ON, WE'LL BE BACK.
WE'RE GONNA, WE'RE GONNA TACKLE ALL OF THE ISSUES, BUT WE GOTTA DO IT YEAR BY YEAR.
ANY OTHER QUESTIONS? IF NOT, I'LL OPEN THE PUBLIC HEARING.
SO AT THIS TIME I WILL OPEN A PUBLIC HEARING ON THE 2024 CDVG ANNUAL ACTION PLAN.
FIVE YEAR CONSOLIDATED PLAN AND ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE.
ANYBODY WOULD LIKE TO MAKE A COMMENT? PLEASE COME FORWARD.
SO 1 21 MORNING DUB TRAIL, NEW BERN, NORTH CAROLINA.
AND I'D JUST LIKE TO SAY THAT ANYTHING THAT HELPS WITH HOUSING, ESPECIALLY FOR LOW YOUNG PEOPLE, WOULD BE, DO AS MUCH AS YOU CAN.
YOU CAN'T DO TOO MUCH WITH THAT.
I PURCHASED A SINGLE FAMILY ATTACHED HOME IN TRAVIS CREEK IN 2015 BEFORE EVERYTHING STARTED GOING UP MY MORTGAGE WITH THE NEW FLEET.
ALL IN ALL THREE INSURANCES, THE TACTIC AND THE NEW INCREASE IS GONNA BE, MY TOTAL MORTGAGE IS $450.
THE UNIT ATTACHED TO ME IS CURRENTLY RENTED FOR $1,500.
THAT'S HOW HARD IT'S FOR PEOPLE TO TRY TO.
ANYONE ELSE? WE MAKE A MOTION TO CLOSE THE PUBLIC HEARING.
[01:20:01]
I HAVE A MOTION TO SECOND TO CLOSE THE PUBLIC HEARING.ANY FURTHER DISCUSSION? HEARING NONE.
ANY OPPOSED? PUBLIC HEARING IS NOW CLOSED, SO THERE'S NO ACTION FOR US TO TAKE.
UH, STAFF WILL BE COMING BACK TO US AT A LATER DATE, SO THANK YOU MS. FULMAR.
[8. Consider Adopting an Ordinance Amending the 2017 Roadway Improvements Project Fund.]
NUMBER EIGHT.CONSIDER ADOPTING AN ORDINANCE AMENDING THE 2017 ROADWAY IMPROVEMENTS PROJECT FUND.
CAN YOU HEAR ME? THE 2017 ROADWAY IMPROVEMENT FUND WAS ESTABLISHED IN JULY 11TH, 2017 FOR INFRASTRUCTURE IMPROVEMENTS TO VARIOUS ROADWAYS THROUGHOUT THE CITY.
UM, FOR CLARIFICATION, THIS ORDINANCE WOULD RENAME THE FUND AS A ROADWAY IMPROVEMENT FUND.
THE ROADWAY IMPROVEMENT FUND WILL BE AMENDED TO TRANSFER TWO PAVING PROJECTS CURRENTLY APPROPRIATED IN THE JOURNAL FUND BUDGET, WHICH IS THE WALT BELLAMY AND BURN STREET PAVING AND COUNTRY CLUB ROAD PAVING.
THE PROJECTS WILL BE FUNDED WITH A TRANSFER FROM THE JOURNAL FUND IN THE AMOUNT OF $245,058.
OR HAVE QUESTIONS? HONOR, I ENTERTAIN A MOTION TO APPROVE THE ITEM, PLEASE.
MAY I MAKE MOTION TO APPROVE AN ORDINANCE AMENDING THE 2017 ROADWAY IMPROVEMENTS PROJECT? SECOND.
ANY FURTHER DISCUSSION? HEARING NONE.
LET'S HAVE A ROLL CALL STARTING WITH ALDERMAN BEST? ALDERMAN BEST, YES.
[9. Consider Adopting the Final Budget Ordinance for Fiscal Year 2023- 24.]
CONSIDER ADOPTING THE FINAL BUDGET ORDINANCE FOR FY 2324.OKAY, SO YOU HAVE A, UM, REVISED AMENDMENT IN FRONT OF YOU.
UM, AS INDICATED IN THE TOP RIGHT, THE NUMBERS DID NOT CHANGE, BUT WE CONDENSED ELECTRIC FUND FROM REPORTING BY DIVISION TO ROLL UP IS ONE FOR ELECTRIC OPERATIONS.
THIS IS HOW WE, UM, ADOPTED THE ORIGINAL AND BY DOING SO, IT REDUCES THE RISK OF A BUDGET VIOLATION FINDING IF THERE WERE ANY SURPRISES.
SO WITH THAT, UM, THIS FINAL FY 2324 BUDGET AMENDMENT ENSURES THAT ALL PROJECTED EXPENDITURES HAVE SUFFICIENT BUDGET AND REALIGNED REVENUES TO EQUAL THE APPROPRIATIONS EXPENSE.
BUDGETS ARE REDUCED WHEN THERE IS AN EXCESS OF AVAILABLE FUNDS TO OFFSET THE INCREASE IN APPROPRIATIONS.
FOR OTHER CA CATEGORIES, THERE ARE SEVERAL SIGNIFICANT INCREASES THAT ARE, HAVE AN IMPACT ON THE BUDGETS RESULTING IN AN AMENDMENT FOR THE GENERAL ELECTRIC AND EMPLOYEES BENEFIT INSURANCE FUNDS.
HEALTH INSURANCE CLAIMS ARE HIGH AND ARE PROJECTED TO BE SIGNIFICANTLY HIGHER THAN ORIGINALLY ANTICIPATED.
RESULTING IN AN ADDITIONAL 1.5 1,515,000 COSTS OF HEALTHCARE CONTRIBUTIONS.
SEVERAL FUNDS WERE ABLE TO ABSORB THEIR FAIR SHARE OF THE CONTRIBUTION WITH AVAILABLE BUN BUDGET BALANCES.
HOWEVER, THE GENERAL FUND AND ELECTRIC FUND WERE NOT.
THE GENERAL FUND ANTICIPATES AN ADDITIONAL $309,700 APPROPRIATION FROM FUND BALANCE.
THIS INCLUDES SALARY ADJUSTMENTS FOR OVERTIME, VACATION PAYOUTS DUE TO RETIREMENTS, INCREASES DUE TO UTILITY COSTS, AND $1 MILLION OF ADDITIONAL HEALTH INSURANCE CONTRIBUTIONS COSTS WERE OFFSET BY INCREASED REVENUES FOR PARKS AND REC DEVELOPMENT SERVICES AND PUBLIC WORKS AND REDUCING EXPENSE BUDGETS WITH A, UM, AVAILABLE BA B UH, AVAILABLE BALANCES REDUCING THE AMOUNT OF FUND BALANCE THAT WOULD NEED TO BE, UM, APPROPRIATED TO COVER THOSE COSTS.
THE ELECTRIC FUND REFLECTS AN INCREASE OF POWER COSTS OF $948,000.
TRANSFORMERS, CABLES AND DEVICES FOR 754,000 IN INSURANCE IN THE AMOUNT OF 216,000 OR 261,000 COSTS WERE OFFSET BY AVAILABLE FUNDS IN VARIOUS DIVISIONS, BUT REVENUES ARE ANTICIPATED TO FALL SHORT IN THE AMOUNT OF $3,060,000 RESULTING IN AN APPROPRIATION OF 3,864,000 OF FUND BALANCE.
THE EMPLOYEE'S BENEFIT INSURANCE FUND IS AMENDED TO INCREASE 2.5 MILLION FOR HEALTH INSURANCE CLAIMS. RECOGNIZE THE ADDITIONAL CONTRIBUTIONS, REBATES, AND INTEREST EARNED IN THE AMOUNT OF 2,032,000 IN APPROPRIATE FUND BALANCE IN THE AMOUNT OF 468,004.
HAVE QUESTIONS? NOT I ENTERTAIN A MOTIONAL.
ITEM NUMBER NINE, MAYOR WILL MAKE A MOTION TO ADOPT THE FINAL BUDGET ORDINANCE FOR FISCAL YEAR 2020 3 24.
ANY FURTHER DISCUSSION? HEARING NONE, LET HAVE A ROLL CALL STARTING WITH ALDERMAN BRISSON.
[01:25:01]
ASTOR.[10. Appointment( s).]
APPOINTMENTS AND WE'RE AT A POINT WHERE THERE'S QUITE A FEW THAT'S COMING UP.SO I'M JUST GOING TO GO THROUGH EVERYBODY AND I'LL START WITH ALDERMAN PRU IF YOU HAVE ANY APPOINTMENTS FOR TONIGHT.
UM, I HAVE THREE APPOINTMENTS.
UM, I DON'T KNOW WHETHER YOU WANT TO TAKE THEM INDIVIDUALLY OR JUST IN ONE MOTION.
YEAH, LET'S DO 'EM INDIVIDUALLY SINCE IT'LL BE FOR DIFFERENT, DIFFERENT BOARDS.
UH, I'D LIKE TO MAKE A MOTION TO APPROVE MR. MICHAEL WIKA TO THE HISTORIC PRESERVATION COMMISSION.
ANY FURTHER DISCUSSION? HEARING NONE.
UH, MR. TRE FERGUS FERGUSON, WHO IS A MEMBER OF THE ZONING BOARD OF ADJUSTMENT, HIS TERM EXPIRES AT THE END OF THIS MONTH.
UH, HE IS INTERESTED IN BEING REAPPOINTED AND HE IS ELIGIBLE, UM, TO SERVE A SECOND TERM.
SO I'D LIKE TO MAKE A MOTION TO REAPPOINT, UH, MR. TRE FERGUSON TO THE ZONING BOARD OF ADJUSTMENT.
IT'S THE BOARD OF ADJUSTMENT, BOARD OF ADJUSTMENT.
ANY FURTHER DISCUSSION? UH, ALL THOSE IN FAVOR SAY AYE.
AND THE THIRD ONE, UM, WE HAD A, UH, RESIGNATION FROM THE MUNICIPAL SERVICES DISTRICT ADVISORY COMMITTEE.
UM, THE INDIVIDUAL, UM, WAS THE RESTAURANT, UM, WAS, WAS REPRESENTING THE RESTAURANT CATEGORY, UH, ON THE MSD WITH THAT, UH, RESIGNATION, UH, I'D LIKE TO MAKE A MOTION TO APPROVE, UH, CAROL STUBBS, UH, TO FILL THE UNEXPIRED TERM FOR THAT RESTAURANT CATEGORY.
UH, ALL THOSE IN FAVOR SAY AYE.
ALDERMAN ROYO, ANY APPOINTMENTS? I HAVE NONE TONIGHT.
I'M STILL LOOKING AT THE PLANNING AND ZONING, UH, BOARD AND I HAVE SOMEONE INTERESTED AND I'M WAITING BACK, UM, FOR THEIR APPLICATION.
UM, I WOULD LIKE TO FIRST THANK MR. UM, ZO.
I HOPE I'M NOT KILLING THAT NAME TOO BAD FOR HIS SERVICE ON THE PLANNING AND ZONING.
HE IS, UM, HIS TERM IS EXPIRING.
HE DOES NOT QUALIFY FOR REAPPOINTMENT.
SO IN HIS PLACE, I WOULD LIKE TO, UM, RECOMMEND KIPP PARAGO.
I'VE ALREADY TALKED TO MR. PARAGO AND HE IS WILLING TO SERVE.
SECOND, I HAVE A MOTION AND A SECOND.
UM, KIPP IS ON REDEVELOPMENT COMMISSION.
I THINK THAT'S THE ONLY OTHER BOARD HE'S ON.
SO HE WOULD BE OKAY WITH THESE TWO? YES, SIR.
ANY FURTHER DISCUSSION? HEARING NONE.
ANY OPPOSED? OKAY, THAT'S ALL, SIR.
UH, WE'VE HAD A RESIGNATION ON THE, UH, BIKE AND PEDESTRIAN ADVISORY COMMITTEE AND, UH, LIKE I HAD STATED LAST TIME, UH, MR. BEN LINDEMAN, UH, HAS APPLIED AND IS INTERESTED, I'VE TALKED TO HIM, HE'S STILL WILLING TO SERVE, SO I WOULD LIKE TO NOMINATE HIM TO SERVE ON THE VI AND PEDESTRIAN ADVISORY COMMITTEE.
SECOND, I HAVE A MOTION AND A SECOND.
ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE.
[11. Attorney' s Report.]
IS ATTORNEY'S REPORT.[12. City Manager's Report.]
MANAGER'S REPORT.UM, WE RECEIVED A FEW INQUIRIES FROM, UH, TO TOUR BOAT OPERATORS FOR AUTHORIZATION TO BE ABLE TO USE SOME OF OUR, OUR FLOATING DOCKS AT LAWSON CREEK PARK AND AT UNION POINT PARK TO, TO GIVE TOURS.
NOW, CURRENTLY OUR, OUR ORDINANCE IS, IS NOT DESIGNED TO ALLOW THAT.
AND SO I JUST WANTED TO SEE IF, IF THE BOARD WANTED TO ENTERTAIN THIS, WE WOULD'VE TO, UH, UPDATE THE ORDINANCE TO CREATE A PROCESS TO ALLOW THIS AND JUST NEEDED A DIRECTION IF THE BOARD WAS INTERESTED IN US PROCEEDING WITH THIS.
UM, YEAH, I'LL JUST GIVE A LITTLE BIT OF BACKGROUND.
SO THERE WAS A PARTICIPANT IN NEWBURN 1 0 1.
UM, AND SHE ASKED ME ABOUT THIS ON THAT GRADUATION NIGHT AND SAID SHE AL SHE, UM, SUPPORTS OR OPERATES A TOUR GUIDE SERVICE FROM HER BOAT.
UM, AND SHE HAD BEEN PICKING FOLKS UP FROM A DOCK, UH, ONE
[01:30:01]
OF OUR CITY DOCKS.AND, UM, SHE WAS NOTIFIED THAT SHE CAN'T DO THAT LEGALLY.
UM, AND SHE ASKED ME WHAT COULD BE DONE TO POSSIBLY CHANGE THAT.
AND I JUST TOLD HER, I'M SURE THERE WAS A MYRIAD OF THINGS.
I'M SURE THERE'S INSURANCE, THERE'S HOLD HARMLESS AGREEMENTS, THERE'S ALL KIND OF THINGS THAT WOULD NEED TO BE ADDRESSED.
UM, SO I FORWARDED THIS TO THE ATTORNEY AND THE MANAGER.
UM, IT IS SOMETHING THAT WE CAN DO AND THERE WILL BE, UH, BOXES THAT ANYONE WOULD HAVE TO CHECK, YOU KNOW, IF THEY WANTED TO DO THAT.
UM, SO I'M JUST BRINGING THIS UP NOW.
SO THANK YOU FOR REMINDING ME, SIR, IT'S A PLEASURE OF THE BOARD TO EXPLORE THIS OR NOT.
IS THERE A FEE ATTACHED TO THIS? THERE COULD BE.
WE WOULD RECOMMEND A FEE FOR THIS.
I, I THINK IT'S WORTH EXPLORING, UM, AND DISCUSSING FURTHER, UH, DON'T KNOW WHETHER OR NOT WE CAN PUT TOGETHER A PROGRAM THAT'S WORKABLE.
UM, BUT AGAIN, IT CAN'T HURT TO LOOK AT IT, SO I AGREE.
ANYONE ADAMANTLY OPPOSED TO IT? OKAY.
I WANNA REMIND YOU THAT CITY OFFICES WILL BE CLOSED ON THURSDAY, JULY 4TH, AND THAT THE ANNUAL JULY 4TH CELEBRATION WILL BE HELD THURSDAY, JULY 4TH AT LAWSON CREEK PARK.
THE EVENT STARTS AT 6:00 PM WE HAVE, UH, LIVE ENTERTAINMENT GAMES AND ACTIVITIES FOR THE FAMILY.
AND FIREWORKS WILL START AT NINE 15 SHARP.
SO HOPE, HOPE EVERYONE COMES OUT AND ENJOYS A GREAT 4TH OF JULY.
[13. New Business.]
TO NEW BUSINESS STARTING WITH ALDERMAN BRISSON.UH, YEAH, MR. MAYOR, THE, JUST WANTED TO, UM, TALK ABOUT WHY I WAS LATE TODAY.
THE, UH, I WENT TO GLOBAL T PARK KINSTON, UH, FOR THE GROUNDBREAKING CEREMONY FOR A HANGAR THAT'S BEING BUILT OUT THERE THAT'S GONNA BE LEASED TO FRC EAST, UH, WITH THE POTENTIAL OF ONCE THAT'S COMPLETE AND THEY TAKE OWNERSHIP OF THAT OR TAKE, UH, RENTAL OF THAT, UH, 400 JOBS TO OUR REGION FOR C ONE 30 DEPO WORK.
AND SO, UH, I WANTED TO BE OUT THERE 'CAUSE THAT IS A HUGE, UH, NOT ONLY ECONOMIC DRIVER TO OUR REGION, BUT ALSO, UH, VERY IMPORTANT TO THE, UH, MILITARY READINESS FOR NOT ONLY THE MARINE CORPS, BUT POTENTIALLY THE NAVY AND THE AIR FORCE, UH, WHO MAY DO C ONE 30 DEPEL LEVEL WORK THERE.
AND AS I HAVE SAID MANY TIMES WITH, UH, TRYING TO BUILD AN AIR AEROSPACE CORRIDOR HERE, I 42, UH, BETWEEN FRC EAST AT CHERRY POINT FRC EAST AND KINSTON, NEW BERN MAKES A GREAT BEDROOM COMMUNITY THAT YOU CAN MOVE UP THE RANKS, UH, GOING BACK AND FORTH AND DOING THAT.
SO IT WAS VERY EXCITING TO SEE THAT COME TO FRUITION TODAY.
AND THEN AS A, UH, MOMENT OF PERSONAL PRIVILEGE, UH, I TOOK MY DAUGHTER UP YESTERDAY TO, UM, LET'S SEE, NAVY RECRUITING RESERVE UP IN RALEIGH.
AND SHE TOOK AN OATH OF ENLISTMENT INTO THE NAVY AS SHE ACCEPTED HER SCHOLARSHIP, UH, FOR NAVY NURSE.
SO UPON GRADUATION NEXT, UH, SUMMER, SHE'LL BE A NAVY NURSE.
THAT'S, AND IF SHE EVER WANTS TO COME HOME AND BE A NURSE, WE HAVE A HOSPITAL.
OH, I, IT'S ALWAYS LOOKING SO I TRIED.
YEAH, IT'S A GREAT, UH, IT'S A GREAT CAREER FIELD TO BE IN FOR SURE.
UM, I KNOW WE REALLY DON'T HAVE ANY JURISDICTION OVER THE NEW VERN HOUSING AUTHORITY, BUT I JUST WANTED TO KNOW, UM, 'CAUSE I'VE HAD, UH, TWO PEOPLE REACH OUT TO ME AND WONDERING WHY, UM, THE HOUSING AUTHORITY THERE WERE MEETINGS OR NOT BEING, UM, PUT OUT THERE ON SOCIAL MEDIA FOR THE PUBLIC TO SEE THAT.
UM, I THINK THEY SAID MAY AND THE MAY AND JUNE MEETING VIDEOS WERE NOT THERE.
IS THERE SOME WAY THAT WE CAN CONTACT OR WE WE CAN REACH OUT TO THEM OKAY.
SO THAT THEY CAN PLEASE DO SO.
AND THEN, UM, FOSTER ANOTHER QUESTION.
AND I KNOW, UM, I CAN ANSWER IT MYSELF, BUT SINCE I GOT YOU HERE, UM, I'LL PICK ON YOU
BUT, UM, IN OUR SCHEDULE FEES, WHEN IT COMES TO THE PARKS, WE'RE CHARGING OUR PUBLIC, UH, WE'RE CHARGING PEOPLE TO USE THE SHELTERS.
WE'VE HAD THAT CHARGE IN PLACE FOR, FOR MANY YEARS.
SO IF I WANNA JUST GO TO THE PARK WITH MY CHILD OR THREE KIDS AND I GO THERE AND I GO THERE AND SET UP UNDER THE SHELTER, I HAVE TO PAY FOR
[01:35:01]
THAT.SO, OR IS IT MORE THAN, LEMME CLARIFY THIS FOR YOU.
SO 20 OR MORE PEOPLE, IF, IF YOU THOUGH THOUGH, IF YOU WANT TO RESERVE THE SHELTER, OKAY.
IF YOU'VE GOT A FAMILY REUNION, OKAY, YOU WANT TAKE YOUR FAMILY OUT THERE AND YOU WANT TO RESERVE THAT SHELTER, THAT MEANS YOU HAVE THAT FOR THAT TIME.
OKAY? YOU NEED TO GO THROUGH THAT PROCESS.
NOW, JUST TO POP UP, IF YOU WANT TO POP UP AND NO ONE'S THERE, ALL YOU, YOU CAN DO THAT.
BUT IF, IF THE SHELTER IS RESERVED, WE HAVE SIGNAGE UP STATING THAT.
ALDERMAN KIDSY, UM, THIS SIGNED A NEW BUSINESS.
UH, I WANT TO REVISIT THE, UH, 1% FOR THE, UH, UH, EMPLOYEES TONIGHT, MR. FOSTER.
I WANT TO VISIT THAT IN, IN TERMS OF A, UM, 2% INCREASE A COLD.
SO YOU'RE, YOU'RE WANTING TO RECOMMEND A 1% INCREASE? NO.
UM, A MINUTE FROM TWO TO THREE.
'CAUSE WE DID SAY TWO TO FOUR.
SO WHAT WAS, WHAT IS, WHAT DO WE HAVE NOW? SO, SO THE BOARD ADOPTED A 2% COST OF LIVING ADJUSTMENT.
SO I WANT TO ADD A, A ONE TO THAT, WHICH WOULD BE THREE, 3%.
SO, UM, IF, IF THE BOARD WANTED TO DO THAT, AND I'M GONNA, I'M GOING TO DEFER THAT TO KIM TO GIVE AN IDEA ON WHAT THE COST WOULD BE.
AND WHILE SHE'S DOING THAT, UH, DID YOU GET A CHANCE TO, DID OTIS EVER BRING YOU ANY INFORMATION ABOUT HIS FEES ON THE PAY CHANNEL? YES, SIR.
SO, UM, THIS WAS DURING A WORKSHOP, I BELIEVE, UH, SEVERAL MONTHS AGO.
UM, ALDER MCKENZIE ASKED ABOUT, UM, CCTV 10 POSSIBLY DOING, DOING THE BROADCAST OF OUR, UM, OF OUR BOARD MEETINGS.
AND SO, UM, I, I'D SPOKEN TO HIM, COLLEEN SPOKEN TO HIM ON A NUMBER OF OCCASIONS.
I, I SPOKE TO HIM RECENTLY AS WELL.
THE INFORMATION THAT HE PROVIDED IS, IS NOT COMPLETE.
AND SO I DO NOT HAVE A, A FULL INFORMATION FROM HIM.
THE BIGGEST THING I WANT TO HEAR FROM THE BOARD, UM, WHAT CONCERNS DO YOU HAVE ABOUT THE CURRENT SYSTEM THAT WE ARE ARE DOING WITH THE BROADCAST, IF YOU HAVE ANY? UM, THAT WE KNOW FOR THAT.
WELL, I DON'T THINK A LOT OF PEOPLE ARE REALLY WATCHING IT, UH, FROM WHAT I HEAR, UM, AND WE'VE BEEN LOOKING AT WAYS OF CUTTING BACK TO, WE USE A LOT OF THE, UH, WHAT FACETIME AND WHATEVER ELSE, UH, UH, UH, FACEBOOK LIVES.
THOSE ARE MORE ACTIVE THAN ANYTHING ELSE.
UH, WE CAN'T, WE CANNOT TRACK, UM, THE NUMBER OF VIEWERS ON OUR CITY THREE TV.
THAT ABILITY, WE CAN TRACK HOW MANY PEOPLE WATCH FACEBOOK FEEDS.
WE CAN TRACK IT ON YOUTUBE IF THEY'RE, IF THEY'RE WATCHING IT.
AND WE CAN ALSO TRACK IT ON ROKU AS WELL SINCE WE ARE, UM, PUTTING IT ON THAT.
SO, UH, THAT'S WHERE I'M AT ON THAT.
I, SO AND, AND WE WILL HAVE SOME INFORMATION OKAY.
SO WHEN NEED, I CAN'T SPEAK FOR THE BOARD ON THE OTHER PART.
THEY HAVE TO SPEAK FOR THEMSELVES.
SO WHAT, WHAT WAS THE PROPOSAL? WAS IT GONNA BE TO BROADCAST ON CITY TV OR CV 10? NO, HE WAS, NO, NO.
IT WAS JUST THAT HE'S GONNA DO THE SAME THING THAT THE OTHER FOLKS WAS GOING TO DO.
BUT HE ASKED, BUT CARLENE ASKED HIM FOR TWO DIFFERENT PROPOSAL.
FOSTER ASKED HIM FOR ONE PROPOSAL, SO HE BROUGHT TWO IN.
SO, UH, I DON'T, AND I GUESS IT WOULD BE A DECISION MADE, UH, BASED ON HIS COSTS.
WHAT WOULD IT COST HIM TO DO THE SAME THING THAT THE COMPANY IS DOING NOW? ARE WE UNDER CONTRACT WITH THE COMPANY THAT DOES IT NOW? WE ARE.
DO YOU KNOW WHEN IT, IT'S AN ANNUAL CONTRACT.
I DON'T KNOW WHEN THAT EXPIRES, BUT IT, IT, IT'S PROBABLY COMING UP.
SO I'M ASSUMING THIS IS LIKE, I'M PROBABLY SPEAKING A LITTLE OUT OF TURN HERE 'CAUSE I DON'T KNOW, BUT I'M ASSUMING THIS IS A LITTLE LIKE OUR AUDITING SERVICE OR ANYTHING ELSE WE WOULD NEED TO PUT OUT A RFP OR RFQ.
SO ANYBODY FOR IF WE GOT TO THE POINT THAT FORMALLY WE WANTED THAT MM-HMM.
BECAUSE WE'VE HAD SOME OTHER PEOPLE THAT'S
[01:40:01]
MADE PROPOSALS ABOUT DOING THINGS FOR US MM-HMM.I, THERE'S, THERE'S PROBABLY A COUPLE OTHER THINGS, UM, THAT WE'VE HAD SOME DISCUSSION ABOUT, SOME THINGS THAT WE COULD LOOK AT AT OUTSOURCING, UM, THAT COULD POTENTIALLY SAVE SOME MONEY.
SO I, I'M, I'M ALL FOR LISTENING TO PROPOSALS.
I, I DON'T KNOW WHAT THE PROCESS WOULD BE OR HOW, WHAT WE WOULD NEED TO DO, BUT, OKAY.
ANYBODY ELSE HAVE ANY CONCERNS ABOUT I DO.
THE ONLY PROBLEM, THE ONLY CONCERN THAT I WOULD HAVE, AND I, AND I KNOW YOU'RE SAYING THIS GENTLEMAN IS ACTUAL, WOULD BE THE ADMINISTRATOR OF HOW, OF OUR, UM, BOARD MEETINGS OF RECORDING AND PUTTING THAT INFORMATION OUT THERE ON T THREE? IS THAT WHAT YOU'RE SAYING? NO, NO, NO, NO.
SO YOU'RE SAYING THERE WOULD BE NO TB THREE? NO, NO.
HE WAS JUST ASKED TO GIVE THAT PROPOSAL.
BECAUSE WHEN FOSTER FIRST ASKED HIM TO DO THAT, THAT'S WHAT HE ASKED FOR.
AND THEN WHEN COLLEEN SPOKE WITH HIM, SHE ASKED FOR TWO PROPOSALS.
AND HE, AND I GUESS HE BROUGHT BOTH IN.
HE, I SPOKE WITH HIM AND HE SAID HE BROUGHT BOTH IN.
BUT YOU KNOW, THE ORIGINAL WAY THAT HE WAS LOOKING TO DO IT WAS TO DO IT THE SAME WAY THAT THE, THAT THE INDIVIDUALS THAT IS ARE DOING THE WORKFORCE NOW.
IS THAT PROPOSAL THAT HE SUBMITTED CHEAPER THAN WHAT WE'RE PAYING NOW? DO WE KNOW THAT THE PROPOSAL HE SUBMITTED WAS NOT ALL INCLUSIVE? HE HAD, HE HAS, UH, SAID HE HAD ADDED SOME THINGS AND HE, HE REALIZED HE MAKES MISTAKES ON IT.
SO HE'S HAPPY, UPDATED FOR ME.
I DON'T HAVE A PROBLEM WITH IT AS LONG AS WE CONTINUE WITH TV THREE, UH, BROADCAST AND OUR VIDEO, OUR BOARD MEETINGS BECAUSE MM-HMM.
SO I MEAN, I I WE, WE DEFINITELY, I FEEL THAT WE DEFINITELY NEED TV THREE TO SUPPORT OUR SENIORS AND SUPPORT THOSE THAT DON'T HAVE, I MEAN, WE, WE MAY BE UP TO THE MODERN AGE, BUT THERE'S SOME PEOPLE THAT YOU KNOW THAT ARE NOT AND DON'T KNOW HOW TO UTILIZE CERTAIN DEVICES TO FIND PARTICULAR MEETINGS AND STUFF.
WHEN I'M LISTENING, I'M ALWAYS OPEN TO HEAR WHAT YES.
UM, FOR 1% IT'S A TOTAL AND TO MAKE IT THROUGH, CORRECT? YEAH.
THE ADDITIONAL 1% WOULD BE, UM, $388,908 OVERALL WITH 255,645 OUT OF GENERAL FUND.
UM, IF YOU WERE TO TAKE THAT FROM FUND BALANCE OR POSSIBLY A HALF A CENT TO 1 CENT PAY, UM, INCREASE, I'M NOT SURE HOW YOU'RE PLANNING ON DOING THAT, BUT A HALF A CENT WOULD BE $247,250 AND 1 CENT OF COURSE ADDS 494,500.
I WOULD SUGGEST, UM, A MAYBE MERIT IN THE FORM OF A MERIT OVER A COLA ONE, IT DOESN'T CHANGE OUR CLASSIFICATION PLAN AND INCREASE THOSE, UM, THAT PAY OVERALL INTO RECOGNIZES THE, UM, HIGHER PERFORMERS, WHICH, UM, INCREASES PRO PRODUCTIVITY.
AND THEN, UM, WHICH THEY DIDN'T GET THAT MERIT THIS YEAR.
AND THEN, UM, IT REDUCES THE IMPACT ON THE BUDGET AS WELL.
IT'S NOT GONNA BE QUITE AS MUCH.
UM, 'CAUSE YOU'LL HAVE VARIANCES, YOU KNOW, BASED ON THEIR EVALUATION SCORE.
THAT WAS WHAT WAS LEFT OVER THE, THE UNRESTRICT BECAUSE IT CHANGES DATED THAT THE UNRESTRICTED FUND BALANCE WAS IT, IT WAS APPROXIMATELY SIX POINT, 6.7, $6.8 MILLION AS OF THE LAST TIME WE GET.
YOU KNOW, IT WAS JUST AN ESTIMATE COST.
SO YOU PROBABLY, SINCE THAT WAS WHAT'S LEFT OVER PROBABLY COULD PULL IT FROM THERE THEN.
SO IT WOULDN'T, YOU KNOW, 'CAUSE IT'S JUST SOMETHING THAT WAS LEFT OVER AT THE END OF THE YEAR AND $6 MILLION.
THE UNRESTRICTED FUND BALANCE IS ABOUT 6.7 MILLION IN THE SAVINGS.
BUT WE STILL HAVE A WHOLE MONTH'S WORTH.
I DON'T REMEMBER TALKING ABOUT THIS DURING THE BUDGET WORKSHOPS, BUT DON'T YOU NOW HAVE IN THE BUDGET OF CHRISTMAS BONUS OR GIFT OR SOMETHING FOR ALL EMPLOYEES.
SO FOR THE LAST SEVERAL YEARS WE HAVE INCLUDED BASICALLY $50
[01:45:01]
THAT, THAT ALL, ALL FULL-TIME AND PART-TIME STAFF DO RECEIVE A CHRISTMAS LUNCH AND A QUARTERLY LUNCHEON.HONOR MCKENZIE, DID YOU WANNA MAKE A MOTION ON THAT? I'D LIKE TO MAKE A MOTION THAT WE, UM, GIVE THEM THAT ONE POINT.
I MEAN IT YEAH, WE, WE BRING IT UP TO THREE SO WE HAVE A MOTION.
MOTION DIES FOR LACK OF A SECOND.
I TELL YOU THIS THOUGH, I'D LIKE TO MAKE THIS COMMENT.
IT IS AWESOME TO HEAR HOW YOU LOVE YOUR EMPLOYEES, THAT YOU LOVE THE
JOHNNY RAY, YOU SAID THAT STUFF LAST WEEK TO ME TOO, AND I'M GONNA TELL YOU THAT YOU, THAT'S NOT FAIR.
I COULD SIT HERE AND SAY THINGS THAT YOU DO AND STUFF ALL THE TIME AND, AND MAKE COMMENTS ABOUT WHAT YOU DO AND SAY, WELL, WHY DON'T YOU DO THAT? BUT NOBODY ELSE DOES IT.
WHY DON'T YOU DO THAT THEN BOBBY? WHY DON DON'T YOU DO THAT? YOU, YOU'RE MAKING COMMENTS.
I CAN MAKE ANYTHING I WANT TO SAY.
YEAH, I KNOW YOU CAN, BUT IT JUST MAKES YOU SILLY.
IF YOU DON'T LIKE IT, DO SOMETHING ABOUT IT.
WHY DON'T YOU JUST DO SOMETHING ABOUT IT IF THAT'S THE WAY YOU FEEL.
YOU DON'T GET YOUR, I DON'T HAVE A BAD BACK.
ANYTHING THAT YOU DON'T LIKE? POINT OF ORDER.
ANYTHING ELSE IN A NEW BUSINESS? YEAH, I LIKE FOR BOBBY TO BRING IT TO YOU.
YOU THINK I'M SCARED? I'M NOT SCARED.
ANYBODY SAY ANYTHING ABOUT BEING SCARED? I DON'T LIKE WHAT YOU, WHAT YOU SAY.
ARE YOU FOSTER? UM, HOW MUCH ON AVERAGE? UM, YOU MAY NOT KNOW.
HOW MUCH DOES THE EMPLOYEE LUNCHEONS COSTING US? AND YOU, YOU'RE HAVING 'EM FOUR TIMES A YEAR? WE HAVE FOUR TIMES A YEAR ON, ON AVERAGE.
AND, AND WE'RE FEEDING APPROXIMATELY BETWEEN 325 AND 375 EMPLOYEES ON EACH ONE.
THAT, THAT'S COSTING ON AVERAGE OF ABOUT $6,000.
SO TO GIVE YOU AN IDEA, $6,000 CORRECT.
FOR ONE DINNER? THAT'S CORRECT.
DER MACKENZIE STILL A NEW BUSINESS FOR YOU? ARE YOU DONE? YEAH.
I WOULD LOVE FOR BOBBY TO COME OVER HERE.
I I DON'T THINK THAT'S GONNA HAPPEN.
I WISH WOULD, I'M GONNA GO TO THE GARBAGE CAN DERMAN ASKED HER.
YOU KNOW, I, I HAD SOMETHING BUT I DON'T EVEN REMEMBER WHAT IT'S LIKE A SMART PERSON THAT WANTS TO TALK JUNK.
ALDERMAN ROYAL, CAN YOU, CAN YOU PLEASE TALK THAT TONIGHT PLEASE.
I, I'M TRYING TO BE RESPECTFUL AND LET EVERYBODY SPEAK THEIR MIND.
MAYOR ALDERMAN ROYAL YOU UP IN HIS MOUTH AND TALK ABOUT SOMETHING? HE CAN'T SIR.
WHAT COMMENT YOU JUST MADE MAYOR? ME.
I SAID I'M TRYING TO BE RESPECTFUL OF EVERYBODY SAY WHAT THEY WANT TO SAY.
UM, CHIEF GALLAGHER, UM, I I I WAS AWAY FOR CLOSE TO THREE WEEKS, UM, THE PAST MONTH.
UM, BUT I WAS MONITORING WHAT WAS HAPPENING IN THE COMMUNITY AND, AND YOUR, YOUR DEPARTMENT, UH, WAS, WAS VERY BUSY OVER THE PAST, PAST MONTH.
UM, I JUST WANTED TO ACKNOWLEDGE AND COMMEND THE DEPARTMENT FOR, UH, ITS RESPONSE, UM, TO ALL OF THE ISSUES THAT YOU'VE BEEN DEALING WITH.
AND IT APPEARS THAT YOU'VE HAD A, A, A VERY GOOD SUCCESS RATE, IF YOU WILL, OF UM, IDENTIFYING AND, UH, INCARCERATING, UM, THE PERPETRATOR.
SO I JUST, JUST WANTED TO COMMAND THE DEPARTMENT.
IS THAT ALL
UH, DO WE NEED A CLOSED SESSION? THAT'S A NIGHTMARE.
IF NOT, I ENTERTAIN A MOTION TO ADJOURN.
ANY FURTHER DISCUSSION? HEARING NONE.
ANY OPPOSED? WE ARE ADJOURNED.