* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:02] GARY FINALLY HEARING GARY NOTICE [I. COMMENCEMENT] IS HEREBY GIVEN A JOINT PUBLIC HEARING BETWEEN CITY COUNCIL AND PLANNING ZONING COMMISSION OF THE CITY OF FLUTE, TEXAS, FOLLOWED BY A BUDGET WORKSHOP AND A REGULAR COUNCIL MEETING TO BE HELD ON THURSDAY, AUGUST THE 14TH, 2025 AT 7:00 PM FROM THE COUNCIL CHAMBERS OF FLUTE CITY HALL, LOCATED AT 1 0 8 MAIN STREET, KLU, TEXAS 7 7 5 3 1. FOR THE BELOW LISTED ITEMS, CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO EXECUTIVE SESSION AT ANY TIME DURING THE COURSE OF THIS MEETING TO DISCUSS ANY MATTERS LISTED ON THE AGENDA AS AUTHORIZED BY THE TEXAS GOVERNMENT CODE INCLUDED BUT NOT LIMITED TO SECTION 5 5 1 0 7 1. CONSULTATION WITH AN ATTORNEY, 5 5 1 0 7 2 DELIBERATION ABOUT REAL PROPERTY 5 5 1 0 7 3 DELIBERATIONS ABOUT GIFTS AND DONATIONS. 5 5 1 0 7 4 PERSONNEL MATTERS. 5 5 1 0 7 6. DELIBERATION ABOUT SECURITY DEVICES 5 5 1 0 8 7. ECONOMIC DEVELOPMENT FOUR 8.17 5.183 DELIBERATIONS ABOUT HOMELAND SECURITY ISSUES AND IS AUTHORIZED BY THE TEXAS TAX CODE AND AS AUTHORIZED BY THE TEXAS TAX CODE INCLUDED. BUT I LIVE IN SECTION 3 2 1 0.3022 SALES TAX INFORMATION. I GUESS WE'LL JUST HAVE TO ENUNCIATE TONIGHT TO YELL. YEAH, WE TOO FAR SOUTH FOR THAT . THE AGENDA, THE AGENDA PACKET, THE MEETING LINK ARE POSTED ON THE CITY'S WEBSITE@WWWKLUTEXAS.GOV. TO ADDRESS THE CITY COUNCIL TO PUBLIC COMMENTS AND GENERAL PUBLIC COMMENT FORM MUST BE COMPLETED IF PRESENTED TO THE CITY CLERK BEFORE THE START OF THE CITY COUNCIL MEETING. SPEAKERS MUST OBSERVE THE FIVE MINUTE TIME LIMIT. NO REGISTRATION IS REQUIRED FOR PUBLIC COMMENTS FOR THE PUBLIC HEARING ENFORCEMENT OF THE MEETING. RECORDING OF THE MEETING. THE VIDEO WILL BE MADE AVAILABLE UPON WRITTEN REQUEST OF THE PUBLIC IN ACCORDANCE WITH OPEN MEETINGS ACT MEETING HAS NOW BEEN CALLED TO ORDER MR. BY MR. KEENY. WOULD ONE OF Y'ALL CARE TO BLESS WE TO JUST THANK YOU FOR THE PRIVILEGE OF PRAYER AND GOD, WE JUST THANK YOU FOR THIS BEING ABLE TO COME AND DISCUSS THE BUSINESS OF THIS CITY, LORD. AND WE ASK THAT YOU WILL GUIDE US THE DECISION WE MAKE TONIGHT. WE ASK NOW IF YOU EACH ONE OF US, BLESS EACH ONE OF US, THE EXTENT YOU WOULD LIKE AND JESUS NAME, AMEN. THE PLEASE THE UNITED STATES OF AMERICA REPUBLIC FOR WHICH STANDS, ONE NATION UNDER GOD, INDIVIDUAL WILL INJUSTICE HONOR. THANK YOU. WE MEETING HAS NOW BEEN CALLED TO ORDER. UH, WE'LL NOW HAVE ROLL CALL CALVIN TRIPLET. PRESENT. ERIC HALE. PRESENT ERIC ALER. PRESENT NICOLE MADDOX. PRESENT. JOE LOPEZ PRESENT. FRANCIS VAUGHN PRESENT. OKAY. PLANNING ZONING, COMMISSION CARE TO CALL THEMSELVES TO ORDER AND HAVE ROLL CALL. UH, RECALL PLANNING ZONING IN INTO ORDER. ARNOLD VAUGHN PRESENT. AVERY PRESENT GERALD CREDIT. DAVID RICK AWAY PRESENT. DAVID COLE PEPPER PRESENT MICHAEL PRESENT. FIRST ITEM [II. JOINT PUBLIC HEARING - REPLAT - 238 JOHNSON COOK ROAD] ON THE KNIGHT'S AGENDA IS A JOINT PUBLIC HEARING FOR A RELA AT 2 38 JOHNSON COOK ROAD. AND THE FIRST ITEM IS TO READ THE LEGAL REQUIREMENTS AND TO ALL PERSONS AND INTEREST CITIZENS, CORPORATIONS, FIRMS, THEIR AGENTS AND ATTORNEYS, AND TO ALL PERSONS, FIRMS AND CORPORATIONS ON ANY INTEREST IN LAND LOCATED WITHIN THE CORPORATE LIMITS OR EXTRATERRITORIAL. JURISDICTION OF THE CITY OF FLUTE, MISSOURI COUNTY, TEXAS ARE WITHIN 200 FEET OF THE PROPERTY. DESCRIBED IN THIS NOTICE NOTICE OF PUBLIC HEARING, A JOINT PUBLIC HEARING OF THE CITY, KLU CITY COUNCIL AND THE PLANNING AND ZONING COMMISSION WILL BE HELD ON THURSDAY, THE 14TH DAY OF AUGUST, 2025 AT 7:00 PM FROM THE CITY HALL OF THE CITY OF KLUT, MISSOURI COUNTY, TEXAS, LOCATED AT 1 0 8 EAST MAIN STREET, CLUT, TEXAS. THIS JOINT PUBLIC HEARING WILL ALSO BE AVAILABLE FOR YOU ON THE CITY'S WEBSITE@WWWCLUTTEXAS.GOV AT WHICH TIME [00:05:01] AND PLACE THE CITY COUNCIL IN PLANNING ZONING COMMISSION WILL CONSIDER THE APPROVAL PURSUANT TO SECTION TWO 12.0 14 OF THE LOCAL GOVERNMENT CODE FOR A PLAT OF THE FOLLOWING SUBDIVISION LOCATED THEREIN, A REPL OF THE FOLLOWING PROPERTY LISTED BELOW. LEGAL DESCRIPTION, BCIC DIVISION 14 LOT 1 74 SLASH 1 75 A 0 0 4 9 A C CLUT ACRES 10 IS 2 38 JOHNSON COOK ROAD 4 35 KLUT, TEXAS 7 7 5 3 1. PURPOSE IS DIVIDE THE 10 ACRES INTO TWO FIVE ACRE TRACTS. NEXT ITEM IS TO NOTE THE PUBLISHER'S AFFIDAVIT. THE, THE NOTICE OF OF PUBLICATION WAS ON JULY THE 25TH, 2025 AND WAS PUBLISHED IN THE BRAD PORT FAX AND NOTE THE LIST OF PROPERTY OWNERS NOTIFIED BY MAIL. THERE WERE EIGHT UH, NOTICES SENT OUT. NONE WERE RETURNED SO WE PRESUME THAT THEY WERE ALL DELIVERED. NEXT ITEM IS TO OPEN THE FLOOR FOR THOSE IN FAVOR OF THE REPL. FIRST ITEM IS TO READ LETTERS FROM THOSE IN FAVOR OF THE REPL. I SEE NONE IN THE PACKAGE. OKAY. OKAY. THEN THE NEXT ITEM WOULD BE YOU HEAR FROM ANYONE PRESENT THAT'S IN FAVOR OF THE REFL PRESENT. PRESENT. IS THAT MY NAME OR PLEASE? OKAY. MY NAME IS LAURA RIO AND WE'RE THE OWNERS OF, UH, 2 38 JOHNSON COOK ROAD, TEXAS. THAT IS THE OLD FW BUILDING. THREE YEARS AGO OUR PLAN WAS TO BUILD A UM, WEDDING, BUT ONCE, UM, STARTED AND THAT BUILDING WAS AN ALL BUILDING, UM, IT WAS A LOT. IT STILL IS A LOT. AND THEN WE HAD THE HURRICANE OR YEAH, HURRICANE, BAD WEATHER AND DESTROY YOUR ROOF. THEY DID A LOT OF DAMAGE. UM, WE DID GET SOME MONEY. SO IT'S NEW, REMODELED, NOT WHOLE, BUT IT HAS NEW ROOF, YOU KNOW, EVERYTHING FOR PLANT NOW IS TO JUST KIND, YEAH, DIVIDED, DIVIDED FIVE TO UH, TO UH, THE FIVE ACCURATE ACRES WITH THE ONE WITH THE BUILDING AND KEEP THE OTHER ONE. AND FOR US TO START, UH, SOME KIND OF BUSINESS. NEXT ITEM WOULD BE THOSE OPPOSED TO THE REPL FIRST ITEM IS TO READ LETTERS FROM THOSE OPPOSED, I SEE NONE IN THE PACKAGE. THEN THE NEXT ITEM WOULD BE FOR TO HEAR FROM ANYONE PRESENT. THAT'S OPPOSED TO THE REPL HEARING. NONE. NEXT ITEM WOULD BE COMMENTS FROM PLANNING AND ZONING COMMISSION. NO. OKAY. COMMENTS FROM MAYOR CITY OF COUNCIL. I ONLY HAVE ONE QUESTION JUST SIMPLY FROM THE WAY IT'S DRAWN HERE. UH, THE DIVISION THAT YOU'VE GOT WITH THE VA, HOW WILL Y'ALL ACCESS THE BACK FIVE ACRES OR AM I LOOKING AT THIS WRONG? YEAH, SO THE WHOLE LAMP, THE, AND THEN IT'S THAT WHOLE RED WATER AND IT'S GONNA BE DIVIDED BY THE GONNA BE ON THIS SIDE. AND THIS I THINK HE'S ASKING HOW ARE NO, HOW ARE YOU GONNA HAVE ACCESS TO THE NO, THE, THE, THE LAW ITSELF. UH, EVEN THE WHOLE DECISION. YEAH, I SEE WHAT YOU'RE SAYING. OKAY. OKAY. SO THE WAY THAT THE LOT IS LOCATED, GOING LIKE THIS, SO THE IS LIKE THIS. SO WE GONNA DIVIDE IT IN THE MIDDLE, THIS PART OF THE BUILDING AND THIS PART IS GONNA HAVE ACCESS TO THE, SO THERE'S NOTHING ON THIS SIDE END. THE BACK SIDE IS THE, SO I THINK THE PART ON THE PLAT IS CORRECT AND THIS ONE IS, YEAH, I THINK THE ONE THAT'S INCORRECT, THIS IS CORRECT. I THINK I OKAY. [00:10:01] MAYBE MINE'S DRAWN WRONG. YEAH, YEAH. NO, IT'S GONNA BE ACCESS ON BOTH SIDES. GOTCHA. OKAY. I JUST MAKE SURE WE WOULDN'T LANDLOCK IN THE MIDDLE. OH YEAH, THE SURVEY. THE FIRST SURVEY DRAWING IN. I'VE SEEN THE SURVEY. YEAH, I SHOULD HAVE COMPARED IT TO ADDRESS ON THE RIGHT SIDE. BOTH OF 'EM GONNA HAVE ACCESS TO THE LAKE. YEAH. WON'T HAVE ACCESS TO THE WATER. YES. SOMETHING WE WRITE DOWN AND YOU'LL GET TWO BUSINESS. OKAY. ANY OTHER QUESTIONS? COMMENTS? NEXT ITEM WILL BE CLOSED. DISCUSSION HERE. THE RECOMMENDATION OF PLANNING ZONING COMMISSION ON THE FINAL RELA OR THE FINAL PLAT. I'LL MAKE A MOTION. I'LL SECOND THAT. A MOTION SECOND. ALL IN FAVOR SAY AYE. A OPPOSED, WE UH, RECOMMEND THAT THIS RELA BE GRANTED UNDER ALL THE NORMAL CIRCUM CIRCUMSTANCES. OKAY, NEXT ITEM WOULD BE CONSIDERATION OF POSSIBLE ACTION FOR CITY COUNCIL TO APPROVE OR DENY THE RECOMMENDATION FROM THE PLANNING ZONING COMMISSION FOR THE FINAL PLAT, WE HAVE A RECOMMENDATION FROM THE PLANNING AND ZONING COMMISSION THAT THE FINAL PLAN BE GRANTED WITH NORMAL STIPULATIONS RELATIONS. MAY I'LL MAKE A MOTION TO APPROVE. MOTION MADE BY COUNCILMAN AGUILAR. I'LL SECOND. SECONDED BY COUNCIL PERSON MADDOX. ANY FURTHER DISCUSSION? HEARING NONE ALL ENTERTAIN A VOTE? ALL IN FAVOR. A. AYE. UNANIMOUS. THANK YOU. THANK YOU. THANK YOU. THANK YOU. PLANNING AND [III. ADJOURN JOINT PUBLIC HEARING] ZONING. COMMISSION CARE TO ADJOURN. I'LL MAKE A MOTION TO ADJOURN. SECOND MOTION AND SECOND. ALL IN FAVOR SAY AYE. AYE. OPPOSED? ADJOURN. ALL RIGHT. WE WILL NOW ADJOURN THE PUBLIC HEARING AND MOVE INTO THE REGULAR, UH, COUNCIL MEETING. AND THE FIRST ITEM IS SCISSOR BUILDER'S COMMENTS. I SEE NO ONE SIGNED UP. SO WE WILL FOREGO READING THAT AND MOVE INTO THE NEXT ITEM. THE [V. CONSENT AGENDA] NEXT ITEM IS CONSENT AGENDA AND ITEMS UNDER THE CONSENT AGENDA ARE CONSIDERED ROUTINE OR GENERALLY ENACTED IN ONE MOTION. THE EXCEPTION TO THIS RULE IS THE COUNCIL MEMBERS MAY REQUEST ONE OR MORE ITEMS BE REMOVED FROM CONSENT AGENDA FOR SEPARATE ACTION. TONIGHT'S CONSENT AGENDA CONSISTS OF MINUTES, A JOINT PUBLIC HEARING AND A REGULAR COUNCIL MEETING. JULY THE 10TH, 2025. FIRST BUDGET WORKSHOP, JULY THE 12TH, 2025. SECOND BUDGET WORKSHOP, BUDGET TAX RATE RECORD, VOTE AUGUST THE SEVENTH, 2025. HAVE A MOTION TO APPROVE THE CONSENT AGENDA. I'LL MAKE A NOTE BY COUNCILMAN CHRIS. SECONDED BY COUNCIL PERSON. MADDOX, ANY ITEMS NEED TO BE REMOVED? ANY DISCUSSION? HEARING NONE, I'LL UNDERSTAND THE VOTE. ALL IN FAVOR? AYE. AYE. UNANIMOUS. THANK YOU. NEXT ITEM [VI. BUSINESS ITEMS] WILL BE BUSINESS ITEMS AND ITEM A IS CONSIDER IMPOSSIBLE ACTION TO ADOPT RESOLUTION NUMBER 41 DASH 2025 APPOINTING MEMBERS TOTE THE KLUTE VISITORS BUREAU AND IT WOULD BE CITY OF CLUTE RESOLUTION 41 DASH 2025 APPOINTING MEMBERS TO THE KLU VISITORS BUREAU BOARD OF DIRECTORS. WHEREAS CITY COUNCIL APPOINTS MEMBERS TO THE KLUTE VISITOR BUREAU'S BOARD OF DIRECTORS. AND WHEREAS EACH MEMBER SHALL SERVE FOR A TERM OF TWO YEARS OR UNTIL HIS OR HER SUCCESSOR IS APPOINTED BY THE CITY COUNCIL, UNLESS SUCH MEMBER HAS BEEN APPOINTED TO FILL AN UNEXPIRED TERM, IN WHICH CASE THE TERM OF THE MEMBER SHALL EXPIRE ON THE EXPIRATION DATE OF THE TERM OF THE MEMBER WHOSE POSITION HE OR SHE WAS APPOINTED TO FILL. WHEREAS POSITIONS EXPIRED IN SEPTEMBER 24 AND THE CITY COUNCIL OF CITY DESIRES TO FILL THESE POSITIONS NOW THEREFORE BE RESOLVED BY THE CITY COUNCIL OF THE CITY OF CLUTE, MISSOURI COUNTY, TEXAS FIRST THAT THE CITY COUNCIL OF CITY INCLUDE DOES HEREBY REAPPOINT DI PAR, SHIRLEY BUS, JOYCE COTTER CARTER UCK BACCA PRONI PROJECT WARREN DARIN AND WESLEY COPELAND TO FILL THE OPENINGS OF THE BOARD OF DIRECTORS OF THE KLU VISITOR VISITOR BUREAU, WHICH EXPIRED SEPTEMBER, 2026. ONE SAYS 24 AND ONE SAYS 26 20 SIXTH. OKAY, UH, SECOND, THAT THIS RESOLUTION AFTER EXECUTION OF ATTESTATION SHALL BE MAINTAINED IN THE PERMANENT RECORDS OF THE CITY OF CLUTE TEXAS RED PASSED [00:15:01] THAT APPROVED THIS 14TH DAY OF AUGUST, 2025 AD AND IT HAS BEEN APPOINTED, POINTED OUT THAT THE, THE FIRST ONE SHOULD BE 2026 AS WELL. DO I HAVE A MOTION TO APPROVE RESOLUTION? 41 DASH 2025. SO MOVED, MOVED BY COUNCIL PERSON BOND. DO I HAVE A SECOND? I'LL SECOND. SECOND ABOUT COUNCIL PERSON MAD DISCUSSION? NO. HEARING NONE. I'LL ENTERTAIN A VOTE. ALL IN FAVOR? AYE. UNANIMOUS. THANK YOU. NEXT ITEM WILL BE ITEM B. AND I HAVE BEEN ASKED TO TABLE THIS ITEM FOR A CLARIFICATION IN THE CONTRACT. SO AT THIS TIME, I WOULD CONSIDER A MOTION TO TABLE ITEM AND B TILL THE NEXT MEETING MOVED BY COUNCILMAN CHRIS. SECOND. GOODBYE, I COUNCIL PERSON BOND ANY QUESTIONS, COMMENTS, HEARING NONE ALL ENTERTAIN A VOTE? ALL IN FAVOR. A AYE, UNANIMOUS. THANK YOU. NEXT ITEM IS CONSIDERATION AND POSSIBLE ACTION TO ADOPT RESOLUTION NUMBER 43 DASH 2025 APPROVING THE FINAL PLAT LOCATED AT 2 38 JOHNSON COOK ROAD AND IT WOULD BE RESOLUTION NUMBER 43 DASH 2025. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KLU, TEXAS APPROVING THE REPL OF PROPERTY LOCATED AT 2 38 JOHNSON COOK ROAD, KLU, TEXAS. WHEREAS THE CITY OF KLU, THROUGH ITS PLANNING AND ZONING COMMISSION, THE CITY COUNCIL HAS THE AUTHORITY TO REVIEW AND APPROVE OR DENY PLAS AND REPL OF REAL PROPERTY WITHIN THE CITY LIMITS AND THE EXTRATERRITORIAL JURISDICTION OF THE CITY. WHEREAS AFTER DUE CONSIDERATION AND DISCUSSING DISCUSSION, THE PLANNING ZONING COMMISSION VOTED AND RECOMMENDED APPROVAL OF SAID REPL REQUEST. AND WHEREAS THE CL CITY COUNCIL FINDS THAT THE REQUEST IS DULY MADE AND CONFORMED WITH ALL DEVELOPMENT REQUIREMENTS FOR REPL NOW THEREFORE BE RESOLVED BY THE CITY COUNCIL, THE CITY OF CL TEXAS. THAT SECTION ONE, THE CITY COUNCIL APPROVES THE REQUESTED REPL OF REAL PROPERTY LOCATED AT 2 38 JOHNSON COOK ROAD C TEXAS SECTION TWO, EFFECTIVE DATE. THIS RESOLUTION AND THE RULES, REGULATIONS, PROVISIONS, REQUIREMENTS, ORDERS AND MATTERS ESTABLISHED AND ADOPTED HEREBY SHALL TAKE EFFECT AND BE IN FULL FORCE AND EFFECT ON THE DATE OF PASSAGE. AND UPON EXECUTION BY THE MAYOR AND CITY SECRETARY IS SET FORTH BELOW. AND SECTION THREE, PROPER NOTICE AND MEETING. IT IS HEREBY FOUND AND DETERMINED THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED, WAS ATTENDED BY A FORUM THE CITY COUNCIL WAS OPEN TO THE PUBLIC AND THAT PUBLIC NOTICE OF THE TIME, PLACE AND PURPOSE OF SAID MEETING WAS GIVEN AS REQUIRED BY THE OPEN MEETINGS ACT, TEXAS GOVERNMENT CODE CHAPTER 5 5 1 READ PASSED AND ADOPTED THIS 14TH DAY OF AUGUST, 2025. SIGNED BY MYSELF AND ATTESTED BY ROSIE PO AT CITY CLERK. HAVE A MOTION TO APPROVE RESOLUTION NUMBER 43 DASH 2025 SHALL MOVED, MOVE BY COUNCIL PERSON BOND. I'LL SECOND BY COUNCILMAN AGUILAR. DISCUSSION, HEARING NONE ALL UNDERSTAND THE VOTE. ALL IN FAVOR, AYE. AYE. UNANIMOUS. THANK YOU. YOU'RE WELCOME. AND [VII. WORKSHOP ITEMS] THE NEXT ITEM WOULD BE YOUR WORKSHOP ITEMS. AND ITEM A IS DISCUSSION OF THE FISCAL YEAR 20 25, 20 26 BUDGET THAT SAID, OH, YOU RECORD . UH, OH. YEAH. SORRY. I'LL, YOU ARE GONNA HAVE TO SPEAK LEFT. I WILL DO MY BEST TO, UH, TALK LOUDER. MY APOLOGIES. UH, AS WE'VE DISCUSSED THROUGHOUT THIS PROCESS, STARTING BACK IN JULY, UH, WE FACED A MAJOR CHALLENGE WITH SOLID WASTE. WE ASKED LAST WEEK, UH, THE COUNCIL, GIVE US A LITTLE BIT MORE TIME TO GO THROUGH AND AND MODEL DIFFERENT SCENARIOS FOR YOU. UH, JOHN AND I HAVE, UH, AND COREY AND ANGEL AND ROSIE, AND I THINK LANDON, WE'VE, WE'VE CALLED MULTIPLE FOLKS IN TO TAKE A LOOK AT NUMBERS, MAKE SURE THAT MY MATH ISN'T, UH, ISN'T TOTALLY CORRUPTED THIS POINT AFTER SEEING NUMBERS FOR SO LONG. AND SO, UH, WITH THAT, WE'D LIKE TO PRESENT TO YOU FOUR POSSIBLE ALTERNATIVES. UH, WE TALKED ABOUT FOUR ALTERNATIVES IN OUR LAST, UH, DISCUSSION BACK IN JULY. REALLY ONLY THREE OF THOSE ARE FEASIBLE. AND I'LL KIND OF GET INTO THAT DISCUSSION IN JUST A SECOND. ONE OF THE THINGS THAT WE ARE PROPOSING, OR THAT'S BEING PROPOSED IN THIS BUDGET IS KIND OF A MAKEOVER OR REDO ON, UH, THE WAY WE ACTUALLY HANDLE OUR BILLING. RIGHT NOW, THE WAY IT WORKS IS OUR INDIVIDUAL RESIDENTIAL ACCOUNTS AND OUR COMMERCIAL ACCOUNTS ARE THE SAME COST REGARDLESS OF YOUR ROLE. AND THE DUMPSTER RATE ISN'T PREDICATED ON THE AMOUNT OF USE. IT'S BASED ON THE NUMBER OF PICKUPS. [00:20:01] AND SO JOHN'S DONE A REALLY GOOD JOB OF GOING THROUGH AND AUDITING THE DUMPSTER PICKUPS. WE FOUND SOME ANOMALIES. WE'VE FOUND SOME PLACES WHERE WE'RE PICKING UP MORE FREQUENTLY THAN WE'RE SUPPOSED TO, WHICH IS A COST LOSS FOR US, OR REVENUE LOSS FOR US, AND A COST TO US. UH, SO WE'RE GONNA CREATE THOSE THINGS, BUT WE ALSO THINK THAT MAYBE MOVING TO A TIERED RATE STRUCTURE WHERE OUR HEAVIEST USERS PAY MORE THAN OUR LIGHTER USERS, UH, MIGHT BE, MIGHT BE IN ORDER. AND SO I'M GONNA KIND OF WALK THROUGH THAT. THIS, THIS MAY GET A LITTLE TEDIOUS, UH, FOLKS IN THE AUDIENCE WANNA GRAB A PILLOW, UH, NOW'S A GOOD TIME OR A BLANKET AND WE'LL GET STARTED. UM, AND SO WE'RE, AS WE DISCUSSED IN JULY, WE'RE AT A PRETTY CRUCIAL PLACE. UH, WE, WE'VE GOTTA REPLACE SOME CAPITAL EQUIPMENT. WE'VE GOT AN AGING, UH, CAPITAL FLEET. WE'VE GOT AN AGING STAFF DOWN THERE. UH, OUR COSTS HAVE CONTINUED TO RISE. I TOOK A LOOK THIS AFTERNOON. WE'VE ACTUALLY RAISED OUR GARBAGE RATES EVERY YEAR SINCE 2021 ON AVERAGE OF 5.5%, BUT WE HAVEN'T BEEN ABLE TO KEEP UP WITH WHAT OUR COSTS HAVE BECOME. AND SO, UH, WHAT WE'RE TALKING ABOUT HERE AND WHAT WE DISCUSSED IN JULY IS A PRETTY RADICAL SHIFT IN RATE, PRETTY AGGRESSIVE INCREASES, UH, THAT WE'VE MODELED HERE FOR YOU. AND THEN WE HAVE OPERATIONAL MODELS THAT WE NEED TO DISCUSS AND FIGURE OUT WHERE WE WANT TO GO. SO, UH, WE GAVE YOU FOUR OPTIONS IN, IN JULY. UH, ONE IS CONTINUE DOWN THE PATH, TWEAK OUR PRICING TO ACCOMMODATE OPERATIONAL REALITIES. UH, TWO IS TO DRASTICALLY OVERHAUL OUR CURRENT SERVICE DELIVERY MODEL. MOVING TO A STRICTLY AUTOMATED SYSTEM, UH, THIS WOULD REQUIRE, UH, CAPITAL INVESTMENT ON OUR PART IN NEW VEHICLES. ALSO STANDARDIZED CARTS FOR ALL RESIDENTIAL CUSTOMERS, MOVING AWAY FROM THE BAGS AND THE CANS AND MOVING TOWARDS THE, THE DUMPS OR THE CART SYSTEM THAT WE'VE, WE'VE LOOKED AT. AND THEN AUTOMATING THAT. UH, THE THIRD WILL BE AN AMALGAM OF ONE AND TWO, UH, WHERE WE CAN DIG, CONTINUE THOSE CHANGES. BUT THEN WE ALSO EXERCISE THE POWER OF THE EXCLUSIVE FRANCHISE ON BEHALF OF THE CITY FORCE WASTE MANAGEMENT AND OTHER FRANCHISEES OUT. AND WE PROVIDE THE SOLE SERVICE FOR COMMERCIAL. AND AGAIN, THIS WOULD REQUIRE A CAPITAL EXPENDITURE ON OUR PART IN ORDER TO BE ABLE TO FILL IN THE GAPS BECAUSE WE CAN'T PROVIDE THE SAME DUMPSTER SIZE THAT SAY WASTE MANAGEMENT DOES OR THE FREQUENCY THAT WASTE MANAGEMENT DOES. SO THERE'S A COST TO EACH OF THESE AND THERE'S THAT, THAT'S THE REALITY. UH, THE FOURTH, UH, WHICH IS THE MOST UNPOPULAR, IS TRANSITION TO A THIRD PARTY PROVIDER FOR ALL SERVICES. WE WOULD BASICALLY HIRE SOMEBODY TO COME IN, UH, IT WOULD BE COMPETITIVELY BID. UH, BUT IT, YOU KNOW, IT'S GONNA HAVE, IT'S GONNA HAVE COST, IT WOULD REDUCE OUR COST, CREATE MORE EFFICIENCY FOR US, UH, AND ACTUALLY TURN THAT THIS SERVICE INTO A POTENTIAL REVENUE PROVIDER FOR THE CITY OR PROFIT CENTER. UM, BUT THE REALITY IS, IS IT'S GONNA SACRIFICE CUSTOMER SERVICE AND A LOT OF COMMUNITY GOODWILL. AND SO, UH, AFTER LOOKING AT THE, UH, AT OUR COMMERCIAL MARKET HERE IN INCLUDE, WE JUST AREN'T BIG ENOUGH TO HAVE THAT TIP TO SCALE AND MAKE THAT THE INVESTMENT DISCUSSED IN OPTION THREE REALLY MEANINGFUL. UH, AND I'LL KIND OF TALK ABOUT THAT HERE IN JUST A SECOND. THE VOLUMES REALLY AREN'T THERE FOR US. AND SO, UH, IT, IT'S NOT A GOOD SOLUTION IN THE LONG OR SHORT TERM. AND SO WE'VE TAKEN A LOOK AT THE, THE FOUR DIFFERENT MODELS THAT WE'RE GONNA PRESENT TO YOU AND, UH, WE'VE KIND OF TAKEN A LOOK AT THIS. AND OPTION NUMBER ONE IS, AGAIN, KICK THE CAN DOWN THE ROAD FOR ANOTHER YEAR WITH A POTENTIAL PEAK OR TWEAK TO THE PRICING. UH, WE WOULD, UH, DEPENDING ON WHICH WEIGHT MODEL Y'ALL CHOOSE, AND WE'RE GONNA GIVE YOU GO OVER THREE DIFFERENT RATE MODELS, KIND OF A LOW, MID HIGH, UH, THAT WE CAN LOOK AT. AND THAT'S GONNA BUY US A COUPLE OF YEARS TO FIGURE OUT WHERE WE WANT BE, WHAT, WHAT KIND OF SERVICE WE WANNA PROVIDE. BUT IT'S REALLY ONLY A, A, A TEMPORARY FIX BECAUSE THE PRESSURES THAT WE'RE FACING, THE TIP FEES, THE EXTERNAL COSTS, THE MAINTENANCE, ALL THAT CONTINUES TO GROW. UH, ONE A, UH, WHICH IS A VARIATION ON THAT THEME, WOULD MAKE A SIGNIFICANTLY, UH, TO, TO CHANGE OUR, OUR MODEL, THE RATE MODEL, AND THEN ALSO CHANGE OUR OPERATIONAL MODEL TO THIS FULLY AUTOMATED SERVICE. UH, WHERE WE WOULD CREATE GREATER EFFICIENCY AND EXTEND OUR TERMINAL PERFORMANCE INDEFINITELY, UH, BUT WOULD REQUIRE A SIGNIFICANT CAPITAL INVESTMENT ON BEHALF OF THE CITY IN BOTH TRUCKS AND CARTS. UH, ONE B WOULD MAKE THAT SAME CHANGE, BUT INSTEAD OF GOING WITH THE STANDARD DIESEL OR GAS MODEL, UH, WE WOULD TRANSITION TO EV TRUCKS. UH, THIS WOULD BE A SIGNIFICANTLY GREATER EXPENSE, UH, WOULD CREATE MORE WEAR AND TEAR ON THE ROADS. UH, BUT WE WOULD RE INCREASE OUR EFFICIENCY, UH, BY REDUCING MAINTENANCE COSTS BY AS MUCH AS 65%. THERE'S NO OIL CHANGES, NO BELTS TO FAIL, NO DEF ISSUES. UH, AND WE'D HAVE TO PUT IN A LITTLE BIT OF CHARGING INFRASTRUCTURE. AND THEN FOR THE ONE THAT'S LUMEN OVER EVERYTHING, THE OUTSOURCING OF THE SERVICE TO A PRIVATE PROVIDER. AND SO, UH, NONE OF THESE OPTIONS ARE REALLY APPETIZING, BUT ECONOMIC AND OPERATIONAL REALITIES OF OUR SITUATION REQUIRE THAT WE MAKE A DECISION. AND SO, UH, THE FOLLOWING SLIDES, YOU'RE GONNA TALK ABOUT THIS TIERED RATE STRUCTURE THAT WE'RE PROPOSING. UH, AND THEN WE LOOK, WE WILL GO INTO OPERATIONAL MODELS, MAYBE THERE [00:25:01] WE GO. SO RATE OPTION ONE WOULD SEE A BASE RATE INCREASE OF 30% ACROSS THE BOARD FOR ALL RESIDENTIAL CUSTOMERS. INSIDE THE CITY LIMITS CUSTOMERS OUTSIDE THE CITY LIMITS WOULD SEE A 40% INCREASE. AND SMALL CART COMMERCIAL CUSTOMERS WOULD SEE AN INCREASE OF 35%. COMMERCIAL DUMPSTER CUSTOMERS WOULD SEE AN INCREASE AT A BASE RATE OF, UH, 25% ON THE LOW END AND AS MUCH AS 45% FOR OUR HIGH VOLUME USERS LIKE OUR MULTIFAMILY HOUSING STORAGE IN HOTELS. UNDER THIS MODEL, THE AVERAGE RESIDENTIAL CUSTOMER BILLING WOULD JUMP FROM 24 0 9 TO 31 32. AND THAT'S WHAT THIS LOOKS LIKE. OH, OKAY. IT DIDN'T CUT OFF. SO WE WOULD SEE AN INCREASE IN REVENUE OF ABOUT FIVE, WELL, A LITTLE OVER $425,000 PER YEAR, WHICH WOULD GET US ALMOST TO THE BREAK EVEN POINT IF WE CONTINUE TO OPERATE AT THE LEVEL WE'RE OPERATING THIS YEAR. SO THIS YEAR OUR EXPECTED EXPENDITURE'S GONNA BE ABOUT 2.3 MILLION AND WE'RE GONNA BRING IN ABOUT 1.8 IN TOTAL REVENUE. UH, WHEN YOU FACTOR IN PENALTIES, INTEREST AND EVERYTHING ELSE THAT COMES ALONG WITH IT. RATE OPTION NUMBER TWO, WELL I WENT BACK RATE OPTION NUMBER TWO WOULD SEE A BASE MODEL INCREASE OF 45% ACROSS THE BOARD. 60% FOR OUTSIDE THE CITY LIMITS, 45% FOR SMALL CART CUSTOMERS. COMMERCIAL DUMPSTERS WOULD SEE AN INCREASE OF 45% ON THE LOW END, UH, AND 60% FOR HIGHER END USERS UNDER THIS MODEL, RESIDENTIAL CUSTOMER BILLING WOULD JUMP FROM 24 0 9 TO 34 93 A MONTH. AND AGAIN, THIS IS WHAT THE REVENUE DIFFERENTIAL LOOKS LIKE. IT'S ALMOST $800,000 SWING, WHICH WOULD ALLOW US TO START CAPITALIZING FOR FUTURE CHANGES. IF THAT'S THE DECISION WE WANTED TO, WANTED TO GO WITH. RATE MODEL NUMBER THREE, UH, WOULD SEE A BASE RATE INCREASE OF 60% ACROSS THE BOARD FOR ALL RESIDENTIAL CUSTOMERS, 70% FOR THOSE OUTSIDE, UH, 60% FOR COMMERCIAL. AND THEN, UH, ON THE DUMPSTERS, THE LOWEST ON THE LOW END WOULD BE 60% FOR INSTITUTIONAL USERS AND THE 75% FOR HIGHER VOLUME USERS. UH, AND UNDER THIS MODEL WE WOULD JUMP A FULL $14, UH, FROM UH, 24 0 9 TO 38 54. TOTAL REVENUE WOULD PUT US ALMOST A MILLION DOLLAR GAIN, UH, WHICH WOULD ALLOW US SOME ROOM TO MANEUVER IN THE FUTURE IF WE WANTED TO MAKE ADDITIONAL CAPITAL EXPENDITURES TOWARDS THIS VENTURE. SO, UH, AS WE DISCUSSED IN JULY, OUR BASE COST JUST TO MAKE JUST TO FLOAT IS 33 74. AND SO ALL THREE OF THESE RATE MODELS REQUIRE, IF WE'RE GONNA MAKE THAT BASE COST, WE'RE GONNA HAVE TO COME UP AT LEAST $8 $9 RATE. OPTION ONE BRINGS US UP ALMOST $10, 10 25 AND ALLOWS US, UH, A LITTLE BIT OF WIGGLE ROOM IF WE HAVE OTHER EX EXIGENT CIRCUMSTANCES. SO THAT'S THE RATE OPTIONS THAT WE THINK, UH, YOU'D ASK FOR TIERS AND YOU'D ASK TO SEE WHAT THE OPTIONS LOOK LIKE. THIS IS WHAT THAT LOOKS LIKE. GETTING INTO THE ACTUAL MODEL ITSELF. UH, WHAT IT, WHAT IT DOES TO THE BUDGET. YOU CAN SEE HERE, UH, RATE MODEL NUMBER ONE, UH, IF WE ADOPTED THAT AND CONTINUED OUR SERVICE AS IT IS, RESULTS IN A DRAWDOWN OF RESERVE BALANCE OF EIGHT OR 667,000. RATE MODEL TWO, UH, CONTINUING OUR CURRENT SERVICE 4, 4 53. AND THEN RATE MODEL NUMBER THREE COUPLED WITH THE CHANGE TO THE, UH, HIGHER VOLUME TRUCKS PUTS US AT 5 58. AND IF WE OUTSOURCE, UH, WE'RE STILL GONNA HAVE TO DRAW A 2 73 AND THAT'S A RESULT OF THE DECLINE IN REVENUE EXPERIENCE TO THE EVALUATION DROP THAT WE TALKED ABOUT AT THE TAX HEARING. SO, UH, THIS AGAIN IS KIND OF A BREAKOUT. ROUGH NUMBERS, TOTAL NUMBERS OF WHAT THE TOTAL, UH, REVENUE WOULD LOOK LIKE FOR SOLID WASTE. UH, SO 2.1, IF WE GO WITH RATE VERSION ONE AND STAY WITH OUR CURRENT OPERATING MODEL RATE NUMBER TWO, IF WE GO WITH OPTION TWO AND ENHANCE OUR SERVICE A LITTLE BIT, UH, BY GOING AUTOMATED, UH, YOU COULD COUPLE EACH RATE MODEL WITH EACH OPERATIONAL MODEL, WHICH IS WHY IT GETS A LITTLE CONFUSING IF THERE'S A ONE A ONE B, ONE C AND THEN A 2, 3, 4 OR 2, 3, 4. JUST KNOW THAT YOU CAN TAKE THAT RATE, WHICHEVER RATE MODEL YOU THINK YOU WANT TO GO WITH AND WE CAN APPLY IT OVER AND THAT'LL GIVE US A DIFFERENT NUMBER IF THAT MAKES SENSE. ON THE, ON THE BACK END. UH, THIS IS WHAT THE EXPENDITURES LOOK LIKE IN TERMS OF THAT, UH, RATE MODEL OR PROPOSED VERSION. NUMBER TWO IS THE NUCLEAR OPTION WHERE WE OUTSOURCE THAT WOULD INCLUDE, UH, SIX MONTHS WORTH OF SALARY AND COST ASSOCIATED WITH OPERATING SYSTEM WHILE WE PROCURED THE SERVICE TO START. AND THEN WE HAVE A PRORATED, UH, CONTRACT AMOUNT INCLUDED, UH, FOR OUR FUTURE THIRD PARTY PROVIDER OF ABOUT $825,000. WE ESTIMATE THAT A THIRD PARTY WOULD RUN US BETWEEN 1.5 AND 1.9. THAT SEEMS TO BE THE GOING RATE HERE IN THE SOUTHEAST TEXAS AREA. SO WE CALLED IT IN THE MIDDLE AT 1.75. SO OF, [00:30:01] AND AGAIN, YOU CAN SEE WHAT THE NECESS NECESSARY, UH, CAPITAL EXPENDITURES WOULD BE IF WE WERE TO INVEST IN FUTURE, UH, FUTURE REVENUES. UH, WE WOULD NEED ABOUT $825,000 TO GO TO A FULLY AUTOMATED SYSTEM. 1.3 IF WE'RE GOING TO GO TO MODEL. UH, THE REALITY IS, IS THE EQUIPMENT REPLACEMENT FUND, UH, HITS A HARD STOP, UH, IN ORDER NOT TO GO BELOW THE NUMBER WE SET LAST YEAR. AND SO 250 WOULD BE THE MAXIMUM CONTRIBUTION, THE REST OF THAT WOULD HAVE TO COME OUT OF OPERATING REVENUE. SO THE COST THERE ASSOCIATED IF WE STAY WITH OUR CURRENT WOULD BE ABOUT 2.2 MILLION. IF WE MOVE TO THE, IF WE MOVED TO THE, UH, TO THE OPERATIONAL MODEL, FULLY AUTOMATED, 2.7, 2.9, IF WE GO TO THE EV AND THEN 1.9 IF WE OUTSOURCE. SO DEPENDING ON WHICH MODEL OF REVENUE YOU CHOOSE AND WHICH MODEL OF OPERATION YOU CHOOSE, IT'S A PRETTY SIGNIFICANT SWING IN TOW OVERALL COST. UH, AND REV NET REVENUE TO THE CITY. OH, WELL, AND I GUESS THAT'S, I THOUGHT I HAD A BREAKDOWN IN HERE, BUT I THINK I ENDED UP PULLING THOSE SLIDES 'CAUSE IT GOT WAY TOO TEDIOUS. BUT BASICALLY WE GRA REGROUPED THE, UH, LET ME TAKE THIS BACK JUST A LITTLE BIT. WE'VE GROUPED INSTEAD OF JUST A BASE RATE FOR, FOR THE ACTUAL, UH, DUMPSTERS AND THEIR FREQUENCY, WE'VE TAKEN A LOOK AT USE. SO YOUR HIGH END USERS WOULD BE YOUR HOTEL MOTEL, MULTIFAMILY AND STORAGE INDUSTRIAL USERS ACTUALLY AREN'T AS HEAVY AS WE AS I KIND OF THOUGHT THEY WERE. UM, BUT SO WE'VE KIND OF TRIED TO TAKE A LOOK AT THAT, WHAT THE ACTUAL USE IS AND THEN ADJUST THE RATE ACCORDINGLY. SO, UM, ANY QUESTIONS AS TO THE RATE MODELS AND HOW WE CAME TO 'EM? I HAVE SOME QUESTIONS JUST IN GENERAL. YES SIR. WHAT DO WE CALL IT? FULLY AUTOMATED? FULLY AUTOMATED MEANS WE HAVE A CART THAT INDIVIDUAL USER WOULD HAVE A WHATEVER SIZE CART WE DECIDE TO GO WITH. I THINK JOHN, DO WE HAVE 90 FIVES? GO AHEAD. WHAT SIZE CART ARE WE RUNNING RIGHT NOW? THERE? THERE'S 95 GALLON. YES SIR. SO A 95 GALLON CART BACK THE TRASH THE TRUCK WOULD'VE A SIDE ON THERE PICK UP 95 GALLON CART. KNOW THAT'S REALLY, THAT'S REALLY THE, UH, THAT TECHNOLOGY BUT EFFICIENT WAY THAT IF YOU WERE TO, EVEN IF YOU WOULD OUTSOURCE IT, THAT WOULD BE THE METHOD WOULD BE USED. CORRECT. BE THE SAME METHOD, WOULD BE THE SIDE PART. PICKUP COST . RIGHT. AND TO OFFSET THOSE COSTS, RIGHT NOW WE'RE SPENDING ABOUT TWO HUNDRED AND SIXTY, TWO HUNDRED FORTY, TWO HUNDRED $60,000 A YEAR ON TEMPS. OBVIOUSLY IF WE GO TO AN AUTOMATED SYSTEM, THAT COST WOULD GO AWAY, GO AWAY OR GO DOWN, WELL GO DOWN. WE HAVE ONE PERSON ASSIGNED TO THE DEMO MOWING CREW, BUT OTHERWISE THEY WOULD GO AWAY. FULLY SIDE CAR, YOU HAVE TO DRIVER OUTSOURCE IT. THE WHICH YOU'RE REFERRING TO ON THE CONTRACT AMOUNT WOULD BE PICKING UP ONCE A WEEK. UH, AND THAT WOULD BE THE SAME METHOD THAT WE WOULD USE, UH, IF WE WERE TO GO THAT, THAT METHOD WOULD BE ONCE A WEEK AS FAR AS IF UM, PEOPLE GO, YOU KNOW WHAT? I JUST CAN'T AFFORD THAT. CANCEL MY DUMPSTER. HOW DO WE ENFORCE THEM GOING SOMEWHERE ELSE? SO THAT'S A GREAT QUESTION. AND SO IF, IF WE EXERCISE THE RANCH OF EXCLUSIVE FRANCHISE, IT WOULD BECOME A LAW ENFORCEMENT ISSUE AT THAT POINT. WE COULD ISSUE CITATIONS FOR ANYBODY PICKING UP DUMPSTERS THAT WERE NOT AUTHORIZED BY US OR OPERATED BY US. RIGHT NOW WE'RE ENTERING INTO LEGAL ACTION WITH A CERTAIN PARTY THAT HAS BEEN OFFERING SERVICE WITHOUT A FRANCHISE. UM, SO ARE THEY CHEAPER THAN US? IS THAT WHAT IT IS? IS THAT WHY THE CUSTOMERS ARE GOING WITH THEM? YES MA'AM. IF YOU'LL RECALL, WE JUST IN, IN THE JULY MEETING, I KIND OF LAID OUT THE, UH, ROSIE DO WE HAVE THE PART ONE OF THE JULY 13TH PRESENTATION. YOU HAVE TO REMEMBER THAT THE PRIVATE PROVIDERS, IN MOST CASES, YOUR MAJOR PROVIDERS, WASTE CONNECTIONS, WASTE MANAGEMENT, GFL UH, BEST OWN THEIR OWN LANDFILLS. AND SO THEIR COST OF TIP IS JUST PART OF THEIR ALLOCATED OVERHEAD. WE HAVE TO PAY. OH YES MA'AM. WHICH ONE? I HAVE THE DATE, THE 7 7 13 25 PART SEVEN 11. IS THAT 7 7 11 PART? YEAH, PART ONE PLEASE. [00:35:02] SO THEY HAVE THE SAME OPERATING COSTS THAT WE HAVE. THEY HAVE THE SAME TRUCKS, THE SAME FUEL, THE SAME PERSONNEL COST GENERALLY SPEAKING, BUT THEY'RE ABLE TO SINK THEIR COST IN THE OPERATION OF THE LANDFILL AND OFFSET THAT BECAUSE THEY'RE ABLE TO CHARGE PRIVATE CONTRACTORS OR PUBLIC CONTRACTORS LIKE OURSELVES THAT TIP IT. SO THEY'VE GOT A BUILT IN REVENUE SET SOURCE AND A SUNK COST ALL IN ONE AS BECAUSE THEY CONTROL THAT RESOURCE. AND SO IF YOU THINK ABOUT WITH OUR RELATIONSHIP WITH WASTE CONNECTIONS, THE SEA BREEZE LANDFILLS, WE PAY THEM A RATE, UH, THIS NEXT YEAR IT'S I THINK ANTICIPATED TO BE $651,000 IF I'M NOT MISTAKEN. YEAH. IT'S IT'S IN THE BUDGET AND I'LL, I CAN TELL YOU THE EXACT FIGURE, BUT WE'RE, WE'RE, WE'RE, WE'RE, WE'RE CREEPING UP ON UP THREE QUARTERS OF A MILLION DOLLARS A YEAR JUST IN TIP. AND THEN THEY WANT TO CHARGE US $65 A MATTRESS ON TOP OF THAT. AND SO THOSE ARE COSTS THAT WHERE YOU HAVE A PRIVATE PROVIDER, THOSE COSTS ARE ABSORBED BECAUSE THOSE ARE JUST THE COSTS THAT THEY HAVE. THEY OPERATE THE LANDFILL, THEY GET TO MAKE THOSE CALLS AND THEY GET TO SINK THAT COST. SO WE'RE AT A COMPETITIVE DISADVANTAGE RIGHT OFF THE BAT IN TERMS OF PRICING. AND THEN YOU COUPLE THAT WITH THEIR ABILITY. 'CAUSE THESE ARE ALL MULTI-BILLION DOLLAR A YEAR CORPORATIONS PUBLICLY TRADED THAT HAVE MUCH BETTER ACCESS TO CAPITAL THAN WE DO AT MUCH MORE FAVORABLE RATES. EVEN IF WE WERE TO BOND OUT TO BUY NEW VEHICLES, THEY'RE GONNA GET A BETTER RATE ON FINANCING THEIR EQUIPMENT, THEIR CAPITAL EQUIPMENT BECAUSE THEY HAVE BILLIONS IN THE BANK AND CAN BUY DOWN THOSE COSTS THAN WE DO JUST BY ISSUING DEBT. LEMME GET IT BACK OVER HERE. WHAT, UH, NOT THE SLOW THEFT, THE TIPPI FEE THAT THEY'RE CHARGING. WHAT EXACTLY DOES THAT ENTAIL? SAME THING THEY CHARGE YOU WHEN YOU PULL IN AND DUMP YOUR STUFF. SO IT'S JUST A FLAT FEE. IT'S NOT PUTTING IT ON THE, I'M THINKING ABOUT THE TIPPER THAT WE USE FOR THE BIG YEAH, NO, NO, NO, IT'S NOT. IT IS NOT. THEY SAY WE UNLOAD OUR STUFF. RIGHT. WE GO TO UNLOAD THE TRUCK, THE LANDFILL. THAT'S THE TIP FEE THAT WE PAY EVERY TIME WE GO IN. UNLOAD. THEY WEIGH YOU WHEN YOU GO IN AND WEIGH YOU WHEN YOU COME OUT. WELL ACTUALLY, OKAY. SO IT'S, THEY VISUALIZE TIPPER FEE. I'M THINKING WHY ARE WE HAVING TO DO, OKAY. IT IS JUST A FLAT RATE FEE, BASICALLY FLAT RATE FEE, BASICALLY. BUT THEY DO, THEY CALL IT A TIPPING. THEY CALL IT A TIPPING FEE. AND IT'S, AND IT'S ACTUALLY THE, THE IRONIC PART IS, IS MOST DUMPS DO IT ON A PRORATE BA, A PRO WEIGHT BASIS. THEY FED, FIGURED OUT A BETTER WAY TO SKIN THE CAT BECAUSE THEY'RE DOING IT ON VOLUME. SO WE CAN HAVE A TRUCK FULL OF BRUSH. WE'RE PAYING THE SAME AMOUNT TO TIP AS WE WOULD IF WE HAD A TRUCK FULL OF BRICKS. THAT'S CUBIC YARDS NOT PANEL. YES. CORRECT. YES SIR. OKAY. WE HAVE PULLED SOME NUMBERS FROM OTHER AREAS AND SOME OF THE AREAS WHERE WE SERVICE, WE, WE CARRY BASICALLY THREE YARD AND FOUR YARD NUMBERS AND LOOK AT SOME OTHER AREAS COMPARING TO WHAT WE CHARGE A THREE YARD CUIC YARD CONTAINER. THIS IS, THESE ARE COST PER MONTH SAME, WHICH WE DO TWO COLLECTIONS PER WEEK. THERE'S ABOUT ROUGHLY A $50 DIFFERENCE PER MONTH. LESS. AND THEN YOU GO UP AND WE'RE CHARGING BASICALLY OR TWICE A WEEK, 21 OR TWICE A WEEK. AND THEN WHERE YOU'VE GOT NEIGHBOR CITY, UH, NORTH OF HERE OUT, THEY HAVE TWO COLLECTIONS PER WEEK WITH A 67. SO OUR DUMPSTER FEES ARE LOWER. YEAH. COMPARABLE TO OTHER AREAS. I, I NOTICED ON HERE, I GUESS THIS IS KIND OF MY PET PEEVE, SO I'M LOOKING FOR IT. I DON'T SEE ANYTHING ABOUT THE HEAVY TRASH. IS THAT INCLUDED IN ONE OF THESE? BECAUSE TO ME THAT'S WHAT'S REALLY EATING US UP WELL, SO THERE WE'RE GETTING EAT UP BY HEAVY TRASH, BUT WE'RE ALSO GETTING IT EAT UP, EATEN UP BY VOLUMETRICS. SO, UH, IF YOU TAKE A LOOK, THE MAJORITY OF LIKE THE, THE MATTRESSES, THE FURNITURE THAT'S GETTING THROWN AWAY, IT'S AT FROM MULTI-FAMILY APARTMENTS. HOTELS AND STORAGE FACILITIES. SO WHAT WE DID IS WHEN WE TOOK THE RATE TIERS AND BROKE 'EM UP, WE INCREASED THAT RATE SIGNIFICANTLY, ANYWHERE FROM 45 TO 60% ON THOSE USERS BECAUSE THAT'S WHERE THE BULK OF OUR, YOU'RE SEEING SOME STUFF ON THE SIDE OF THE ROAD, BUT I GUARANTEE WHEN WE GO TO PICK UP AT ONE OF THE STORAGE FACILITIES AFTER THEY THROW SOMEBODY OUT, THAT TRUCK'S FULL JUST FROM THAT MM-HMM . SO WE'RE TRYING TO PASS THAT COST ONTO THE ACTUAL USER THAT WE'RE EXPERIENCING THE MOST HEAVY TRASH PICKUP AT. SO THE, THE BASE, THE, EVEN IF WE WENT WITH OPTION ONE, YOU SAID IT'S AN INCREASE ON [00:40:02] INDIVIDUAL 30%, THAT'S THE LOWEST THAT YOU, THAT'S IS WHAT WE CAN DO. SO OUR, OUR NET COST RIGHT NOW COMES TO, IF YOU TAKE A LOOK AT ALL OF OUR USERS AND OUR END COST MM-HMM . IS RIGHT AT ABOUT 30, 30.75. THIS WILL GIVE US A LITTLE BIT OVER THAT, A LITTLE BIT OF CUSHION KNOWING THAT WE'RE GONNA HAVE HIGHER COSTS THIS YEAR, NEXT YEAR. WE DON'T KNOW WHERE THOSE, WE DON'T, UNFORTUNATELY THE COST OF OPERATION ISN'T GOING DOWN. RIGHT. AND WE'RE STILL SEEING, YOU KNOW, I THINK THE JOBS REPORT AND THE INFLATION REPORT JUST ARE GETTING READY TO COME OUT. WE'RE LOOKING TO GET AT INFLATIONARY PRESSURES AND SO WHEN THOSE COSTS GO UP, OUR COSTS GO UP AND WE'RE NOT, WE'RE NOT TREADING WATER SO FAR. RIGHT. AND THIS IS DOING ONCE A WEEK OR IS THIS STILL INCLUDING THE TWICE A WEEK? WELL THAT'S THE, THE OPERATIONAL DECISION IS YOURS TO MAKE. UM, RIGHT NOW IF WE MOVE TO THE AUTOMATED SYSTEM, THAT IS ONE TIME PER WEEK. IF WE GO TO THE OTHER SYSTEM OR IF WE CONTINUE TO OPERATE AS WE ARE, THAT WOULD BE TWICE A WEEK. AND THEN DEPENDING ON THE RATE THAT YOU SET, THAT WOULD INFLUENCE THE COST OF OPERATIONS. SO IF YOU LOOK AT OPTION ONE UNDER THIS MODEL RIGHT HERE, THIS IS WHAT THAT NUMBER LOOKS LIKE AT THE BOTTOM FOR SOLID WASTE OPERATING TWICE A WEEK. AND THAT'S OPERATION CALLS VERSUS IN REVENUE. THAT'S CORRECT. BOTTOM LINE. THAT'S CORRECT. AND SO EVEN IF WE WERE TO GO WITH A THIRD PARTY, WE'D STILL BE AT A NEGATIVE 2 73. CORRECT. WHEN WE, WHEN WE FIRST TALKED ABOUT THE BUDGET BACK IN JULY, WE HAD OUR, OUR CITY'S TAXABLE VALUE AT A NUMBER THAT WAS HIGHER THAN WHAT WE HAVE AND WHAT WE'LL BE ABLE TO TAX AGAINST NOW. AND THAT NET LOSS IN REVENUE IS WHAT'S REFLECTED IN THAT 2 73. BUT THOSE ARE, YOU KNOW, WE CAN CONTAIN THOSE. IF YOU'VE TAKEN A LOOK AT OUR HISTORY FOR THE PAST 10 YEARS, WE'VE ALWAYS HAD TO HAD A DRAW DOWN ON RESERVE SHOWN IN THE BUDGET. WE'VE BEEN ABLE TO MAKE THAT UP THROUGH OPERATIONAL EFFICIENCY AND IN IN MANAGEMENT. YEAH, YEAH, YEAH. I'VE SEEN THAT IN THE PAST YEARS. BUT SO THEORETICALLY, IF WE WENT WITH VERSION FOUR, THE THIRD PARTY, WHAT IS, WOULD THE CONSUMER, WOULD OUR RESIDENT SEE AN INCREASE IN THEIR RATES OR IN, IN THE, WELL POSSIBLY. POSSIBLY THAT'S YOUR CALL TO MAKE THIS YEAR BECAUSE WE'RE GONNA BID IT AND SAY THIS IS THE MAX NUMBER WE'RE GONNA PAY. BUT WE ALL KNOW HOW THIRD PARTIES OPERATE. THEY GET IN AT A LOW RATE AND THEN THEY START TO INCREMENTALLY INCREASE. MM-HMM . THOSE COSTS. AND USUALLY THOSE CONTRACTS COME WITH AN AUTOMATIC ESCALATOR. IT'S USUALLY CPI PLUS ONE OR TWO. UH, THEY GO UP INCREMENTALLY EVERY YEAR. SO YOU'RE STILL GONNA SEE A RATE INCREASE. IT JUST MAY NOT BE AS DRAMATIC AS WE MAY HAVE TO GO. IF YOU GO FULLY AUTOMATED, YOU ONLY GET ONE CANISTER, YOU GET TWO YOU CAN GET. SO, UH, UNDER THE MODEL YOU WOULD BE ABLE TO GET ONE OR TWO. YOU COULD DO THAT. UH, BUT YOU HAVE TO PAY, YOU'RE GONNA HAVE TO PAY, PAY AN EXTRA FOR THE SAME. CORRECT. CAN YOU DO THIS WITH ONE TRUCK? DO? WELL THAT'S A GOOD QUESTION BECAUSE IF YOU DO IT ONCE A WEEK, WHEN YOU THINK ABOUT IT, IF WE WERE TO GO TO ONCE A WEEK, WE HAVE SAY RESIDENTS THAT WE UP RIGHT NOW TWICE A WEEK. SO YOU'RE HAVING TWO TRUCKS RUN THAT MUCH. IF YOU GO ONCE A WEEK WITHOUT HAVING MANY PICK UP WHERE YOU BASICALLY TAKING 3000 DIVIDED OVER FOUR DAYS OR THERE'S FIVE DAYS, ONE TRUCK, 600 DUMPSTERS GET CARDS. I MEAN, UH, YOU'RE NOT HAVING TO THINK AS MANY. BUT THEN REALIZE ALSO THAT WHEN YOU GO WITH THIS AUTOMATED SYSTEM WHERE, WHERE, WHERE THE SOUTH SOURCE ARE HERE, YOU'RE GONNA BE GOING DOWN THE STREET TWICE BECAUSE THE WAY IT PICKS UP, YOU GOTTA THAT ONE SIDE TURN AROUND AND COME BACK THE OTHER SIDE. SO YOU'RE NOT GONNA PICK UP THE WHOLE WHOLE TOWN TWICE BECAUSE YOU POSSIBLY DO THAT WITHOUT MOVING IN TROUBLE. AND I KNOW IT WOULD NEVER HAPPEN WITH A NEW TRUCK AND IN CASE SOMETHING QUIT WORKING, YOU'D ONLY HAVE ONE TRUCK PILES. THAT'S ALWAYS AN OPTION. NOW WE HAVE, WE HAVE LOOKED AT, UH, NOT THAT YOU DID, WE HAVE LOOKED AT SEVERAL, SEVERAL IN A SITUATION LIKE THAT WE HAD DOWN, UH, THAT'S POSSIBLE. WE LOOKED AT THE POSSIBILITY TRUCKS [00:45:01] THE FIRST YEAR RENTAL COST TWO. SO THAT MONEY YOU'RE SAVING OFF THAT OTHER GUY BACK THERE. YOU THINK OF YEAH, TWO GUYS IN THE BACK. RIGHT. IT IS GO DOWN STREET AND I'M NOT KNOCKING ANY OF JUST ALITY OF WHAT WE COULD HAVE, WHAT ABOUT PEOPLE WHO DON'T WANT TO PAY FOR A SECOND CAN, BUT YET THEY HAVE MORE TRASH THAN WHAT ONE CAN CAN HOLD. AND THAT'S NOT TO PICK THAT UP, RIGHT? IT'S YOU ANYTHING OUTSIDE THE HEAT, THEY SAID THERE CAN BE WHERE IF IT DOESN'T FIT IN THE DUMPSTER, IT'S NOT BE PICKED UP. SO YOU MAY HAVE TO HAVE A SECOND DUMPSTER. THE THOUGHT PROCESS IS ALSO THAT IF YOU'RE GONNA PICK UP FOUR DAYS A WEEK VIA NEW TRUCK, YOU PICK UP MONDAY, TUESDAY, THURSDAY, FRIDAY. IF SOMEBODY HAD EXTRA PICK, THEY WANT WORK THAT UP. YOU ON A WEDNESDAY CALL, IT MAY CALL SOMEONE AN EXTRA CHARGE PICK. THAT'S THERE'S ALL SEVERAL OPTIONS AVAILABLE UNLESS THEY GET THE CAR BECAUSE THEY'RE, I SEE THAT IN A LOT. AND OTHER AREAS HAVE THAT, UH, THE USE OF THE THERE, THERE'S A LOT OF TRAFFIC UP AND, AND TYPICALLY WHAT YOU LIKE WASTE MANAGEMENT OR BEST, UH, GFL IN THEIR CONTRACTS, THEY'LL PROVIDE FOR A ONCE A WEEK HEAVY PICKUP OR TWICE A MONTH DEPENDING ON HOW WE WOULD WANT TO TAILOR THAT. WHERE YOU KNOW THAT THE SECOND AND FOURTH SATURDAY OF THE MONTH YOU CAN PUT EXTRA STUFF OUT AND THEY'RE GONNA COME BY AND GET IT. BUT IF WE GO TO A THIRD PARTY REVIEW, IF WE PROVIDED IT OURSELVES, MAYBE WE MAKE IT WEDNESDAY AS HEAVY PICKUP DAY, YOU HAVE TO SCHEDULE IT AND IT'S AN EXTRA CHARGE UNDER OUR MODEL OR MAYBE WE JUST BUILD THAT IN TO THE TOTAL COST. UH, BUT THERE'S A WAY TO MANAGE THAT. BUT TYPICALLY SPEAKING, MOST FOLKS, UH, LEARN TO MANAGE WITHIN THAT 95 GALLON CART. MM-HMM . OKAY. IT'S, IT'S, IT'S VERY LARGE. AND THAT'S THE OTHER ISSUE IS WE HAVE AN A AN AGING POPULATION AND GETTING THOSE TWO IN FRONT TO THE STREET CAN BE A LITTLE DAUNTING SOMETIMES. BUT AREN'T WE, AREN'T WE PICKING UP HEAVY TRASH PERS ON ONE WEDNESDAY A MONTH IN EACH ZONE? I'M SORRY, WE'RE PICKING UP HEAVY TRASH RIGHT NOW ON WEDNESDAY AND EVERY ONCE A MONTH IN DIFFERENT ZONES, WE DO GET ONE, UH, ZONE AND ONE, SO I MEAN ONE WEEK, ARE WE TALKING ABOUT DOING AWAY WITH THAT WEDNESDAY OR WELL WEDNESDAYS BASICALLY RIGHT NOW FOR RESIDENTIAL TRASH PICK UP AND OFF, THEY, THEY USE THAT DAY. UH, WHERE WE USED TO DO RECYCLE, WE DON'T USE TO DO RECYCLING ANYMORE. THEY USE THAT DAY TO BRING BAGS HERE OR WE UTILIZE THAT STAFF TO DO OTHER THINGS, UH, WHERE WE NEED IT DONE UP HERE THAT DAY. WHAT, WHAT, WHAT DAYS DID WE PICK UP HEAVY TRASH ON THERE? EVERY TRASH IS PICKED UP ON MONDAY THROUGH THURSDAY. RIGHT NOW THEY'RE DOING FOUR 10 AND THEY'RE, THEY'RE ACTUALLY COMPLETING EACH ZONE RIGHT NOW. IF THEY, THEY DON'T FINISH THE ZONE BY THURSDAY, THE ION STANDING. SO SO WHAT I'M HEARING IS WE GO TO THIRD PARTY THAT'S GOING AWAY TOO. WELL THAT WAS, THAT WAS BROUGHT UP RIGHT THERE. IF BE, IF WE WERE TO GET RID OF ALL OF IT AND HAVE THAT TAKEN OUT TOO. BUT UH, I DIDN'T YEAH, YOU'D HAVE TO. YEAH, YOU'D HAVE TO NEGOTIATE THAT INTO WHATEVER AGREEMENT IF WE'RE GONNA DO AWAY WITH IT. IF WE'RE GONNA KEEP IT RESIDENTIAL COMMERCIAL, I CAN SEE, I CAN SEE RIGHT NOW PILES OF TRASH AND JUNK ALL OVER THE CITY BECAUSE THAT THIRD PARTY AIN'T GONNA PICK IT UP. DUMP PIECES. WE GOT ENOUGH OF 'EM ALREADY. DO WE HAVE TO PICK UP HEAVY TRACK? NO, I MEAN 'CAUSE NO MATTER WHAT CONVERSATION WE COME IT ENDS UP THAT HEAVY TRACK. HEAVY TRACK SEEMS TO BE. YEAH. SO, SO I MEAN I I THINK IF PEOPLE JUST DIDN'T THROW IT OUT BY THE ROAD BECAUSE OH WELL THEY'LL PICK IT UP AT SOME POINT. WHERE DO YOU AS A CITIZEN TAKE CARE OF YOUR OWN OLD COUCH OR YOUR OWN MATTRESS OR YOUR OWN TORE OUT BATHROOM DEBRIS? WELL WHAT WE DO IS, IS IF IT IS OLD THE SIZE MAKES BE A PICKUP TRUCK, THEN WE CHARGE THEM THE ADDITIONAL COST FOR PICKING UP THAT HEAVY TRASH. WE'RE NOT CHARGING DUCT AND THAT, WELL THAT GETS BACK WE'RE, WE'RE PROBABLY NOT CHARGING. I MEAN WE TYPICALLY CHARGE, WE WE AN ESTIMATE ON IT AND, AND THEY HAVE A WEEK TO PAY THAT BEFORE WE GO PICK IT UP. IF THEY DON'T THEN WE'RE GONNA PUT WATER. BUT TYPICALLY RIGHT NOW WE HAVE A LOT MORE PEOPLE DOWN TREES OR IS THEY'LL TAG IT AND THEY'LL HAVE, WE PAY, [00:50:01] THEY DON'T PAY IT TO PICK IT UP THEN. BUT IT GETS BACK TO ALSO KIND OF WHAT YOU WERE ALLUDED TO AND I THINK WHOEVER SET THE HEAVY TRASH OUT THERE ALREADY TO PAY TO PICK UP IF IT'S SMALLER THAN THE PICKUP TRUCK, IT'S JUST ME. BUT DON'T GO IN THE DUMPSTER AND DON'T GO NOTHING. SO IT GETS BACK TO, I DON'T WANNA SOUND THE BAD GUY BUT I KNOW IT GOING TO COME BACK TO US BADLY EITHER WAY. BUT WHAT, WHAT WOULD'VE TO HAPPEN? A CASE USE OF OTHER AREAS WHERE I ASK QUESTIONS, THEY DON'T ALLOW YOU TO PUT THAT STUFF OUT. CORRECT. YOU WANT IT PICKED UP, YOU TAKE IT TO THE LANDFILL. IF YOU PUT ANYTHING OUT LIKE THAT, YOU'LL BE FINE. BUT THEN YOU'VE GOTTA FOLLOW UP WITH THAT, FINDING THEM AND HOLD THEM ACCOUNTABLE BECAUSE DUMP THEIR HOUSE, THEY'RE GONNA TAKE WHERE THEY FIND DUMPSTER AT TO DUMP IT THERE. RIGHT APARTMENT COMPLEX. FIND THEIR DUMPSTER AND DOUBLE DUMP IT THERE. SO THERE'S, THERE'S GOTTA BE SOMETHING BEHIND THAT THAT'S GONNA PREVENT THEM FROM DOING IT. IF YOU DON'T HAVE THAT, THEN THEY'RE CONTINUE DITCH HERE OR GO DOWN MOCKINGBIRD AT THE END OF THE ROAD DOWN THERE, DOWN THERE IT GETS, IT GETS BACK TO CUSTOMER SERVICE LEVEL AND WHAT THEIR EXPECTATIONS ARE. IF THEY EXPECT THAT THEY CAN PUT ANYTHING OUT, WE'RE GONNA PICK IT UP REGARDLESS OF WHAT IT COSTS. THEY'VE BEEN CONDITIONED TO BELIEVE THAT AND SO GETTING THEM OUT OF THAT HABIT IS GONNA BE DIFFICULT. FAIR. YEAH. I SEE STUFF OUT THE TIME OUTSIDE THE ROAD. I'M THINKING WHY IS THAT THIS, WHY IS THAT THE CITY'S RESPONSIBILITY TO PICK UP YOUR GARAGE CLEANING DAY? WHERE'S THE ACCOUNTABILITY FOR AS A PROPERTY OWNER? 'CAUSE IT'S A COURTESY WE'VE ALWAYS GIVEN 'EM AND THAT THE ONLY THING CONSTANT IN LIFE HAS CHANGED. WELL I AGREE IT'S TIME TO CHANGE. WELL WHAT ABOUT LIKE WHAT LAKE JACKSON DOES? WHAT WE GOT THAT BIG DUMPSTER PEOPLE CAN COME. SO, UH, UH, WE, WE TALKED ABOUT TRYING TO DO SOMETHING LIKE THAT. I THINK THE COST WE LOOKED AT LAST, WHAT WAS IT, 2022 WE LOOKED AT TRYING TO DO THAT. I WILL TELL YOU THAT LAKE JACKSON, UH, IS DEBATING THEIR CONTINUANCE OF THAT PROGRAM RIGHT NOW. I MET WITH UH, MR. MODESTO MUNDO. I GUESS THAT WAS TUESDAY LAST WEEK. WE HAD ABOUT AN HOUR LONG DISCUSSION. 'CAUSE I ASKED HOW IT WAS GOING AND HE SAID THEY'RE LOSING THEIR, YOU KNOW WHAT'S ON IT. YEAH. BUT AT LEAST IT GIVES THE RESIDENTS AN OPTION TO DO IT THEMSELVES. THAT'S TRUE. I'M SURE OTHER PEOPLE FIND THE POLES. WELL I MEAN WE CAN'T SAY, WE CAN'T JUST STOP IT AND NOT UH, GIVE THEM AN OPTION. THEY HAVE AN OPTION. THEY TAKE THEMSELVES THEIRSELVES. BUT AT ONE TIME WE WOULD LET PEOPLE TAKE THEIR BRUSH TO THE FIVE ACRES. BUT I DON'T THINK WE EVEN DO THAT ANYMORE. DO WE TAKE IT THERE? WE CAN'T BURN IT. WE CAN'T BURY IT. WE CAN'T DIG OUT THERE. NOTHING AT ALL. SO ALL IT WOULD BE, SO IT'S NOT REALLY FEASIBLE TO TAKE OUT THERE AND STORE IT. BUT I MEAN I KNOW AT ONE TIME WE WERE LET PEOPLE, THEY WEREN'T YESTERDAY. RIGHT? BRUSH ONLY. BRUSH ONLY. BRUSH ONLY WE, AND AT ONE TIME WE WERE TALKING ABOUT PUTTING THE CHIPPER OUT THERE, BUT WE'VE BEEN TRYING TO USE THE CHIPPER REMOTELY. UH, JOHN JOHN'S GUY'S ACTUALLY BUILT A PRETTY COOL GET UP TO HANDLE THAT. SO AS I SAID IN THE BEGINNING, THERE IS NO HAPPY OPTION HERE. NO, I WOULD, I WOULD SAY THAT YOU MENTIONED EARLIER THAT WE TALKED A LOT STUFF. SO WE JUST TO TOUCH ON THAT BRIEFLY. UH, COULD WE HAVE GONE THROUGH AND AND IT'S REALLY A, UH, IT'S TAKEN ABOUT THREE OR FOUR WEEKS TO DO IT, BUT IT WAS LOOKING AT STRONGLY OF WHAT WE WERE DOING PRESENTLY. UH, TO EXPLAIN HIS, YOU HAVE A DRIVER'S BOOK, WHICH THE DRIVER HAS HAS OFF HIS ROUTE THAT HE GOES SIX DAYS, FIVE DAYS A WEEK AND THEN THERE'S A SATURDAY ROUTE. UH, TAKING THAT COMPARED IT TO WHAT OUR SYSTEM SHOWS WHERE WE FOUND MOST OF THE, UH, THINGS THAT WE NEED TO ADDRESS OR IF IT'S NOT JUST ONE PARTICULAR AREA. IT STARTS FROM THE TIME THE ACCOUNT WAS ESTABLISHED ALL THE WAY DOWN TO THE DRIVER PICKING IT UP. SO WE DID FIND A LOT OF AREAS WHERE WE CAN IMPROVE WHAT WE'RE DOING. UH, NOT PUT ANY, I THINK EVERYBODY IT TAKES A ROLE HERE, RESPONSIBILITY. BUT SOME OF THE THINGS WE FOUND AND BRIEFLY, UH, WE FOUND WHERE ACCOUNTS WERE TURNED OFF WHERE IT WAS JUST A DUMPSTER ACCOUNT BECAUSE THE OWNER CHANGED BEING THE DUMPSTER WAS LEFT THERE SO IT NOTHING PICKED UP [00:55:01] AND THAT WAS DONE FINALLY. IT'S STILL ON THE DRIVER'S BOOK AS A PLACE TO BE PICKED UP, LET'S SAY THREE TIMES A WEEK. BUT IT COMES BY NOW IT PICKED UP SIX TIMES A WEEK, BUT IT PAID FOR, FOR LAST SEVEN YEARS. OH MY GOD. SO WHEN YOU DO THE MATH, THE DOLLAR THAT UP. SO MY QUESTION WAS WHY WE ENDED UP SIX DAYS A WEEK AND THIS ACCOUNT, IT SHOULD BE IF IT WAS AN ACTIVE ACCOUNT, PICKED UP THREE DAYS A WEEK. SO THERE'S A LOT OF POLICY ABOUT HOW WE GO ABOUT OUT ACCOUNT, CLOSING ACCOUNT, CHANGING THE ACCOUNT BECAUSE IF THE CUSTOMER COMES IN TODAY, I'LL SET IT UP ON TO PICK UP TWICE A WEEK AND THEN CALL IT NEXT WEEK, PICK UP FOUR TIMES A WEEK. BUT YOU GOTTA CHANGE THAT SYSTEM. THE DRIVER GOTTA SO CALL BOOK, BUT THEN THE SYSTEM'S GOTTA BE UPDATED TO WHERE HE HAD CUSTOMERS ACTUALLY PAY FOR. UH, WE DID, I DIDN'T TALK TO THE DRIVERS ON THIS AND IT'S, IT'S IRONIC THAT I TALKED TO THE DRIVERS. ONE OF THE DRIVERS WE THAT, SO APPARENTLY HE LOOKED CLOSELY AT HIS BOOK. THERE ARE TWO ACCOUNTS THAT HE DID NOT PICK UP TODAY WHERE WE GOT PHONE CALLS. WELL, BUT THEY DID PICK IT UP. SO WHAT WE'RE FINDING OUT IS THAT WE'RE PICKING UP STUFF WHEN WE SHOULD BE PICKED UP AND THIS ONE FIGURE ACCOUNT, WE'RE SUPPOSED TO LOOK AT HAVING AN EXTRA PICKUP WHICH CHARGE. SO 12 DUMPSTER, $3 AN EXTRA PICKUP, THAT MONEY ADDS UP. THE OTHER ONE, LIKE I SAID A MINUTE AGO WAS AN ACCOUNT IS NOW FOR BEING PICKED UP SIX DAYS A WEEK WHERE THE UH, IF IT WAS WITHIN THREE DAYS A WEEK, YOU'RE PROBABLY TALKING ABOUT 20 TO 30,000 FOR THE PAST SEVEN YEARS. THAT COLLECT WHERE'S THE BREAKDOWN AT? SO THAT'S, SO THEY NEED TO LOOKED AT, UM, WE HAD ANOTHER CUSTOMER TODAY THAT CALLED WELL WELL I NEED TO COME THERE AND ADD THE EXTRA DAY. WELL SO NOW THIS CUSTOMER THAT WAS BEING PICKED UP FOUR DAYS TO PUT HIS PAYING FOR IS NOW CALLING IN. SO THAT'S JUST SOMETHING THAT'S HAPPENED IN THE PAST FEW DAYS. SO LOOKING AT WHAT'S WE FOUND AND WHERE WE NEED TO ADDRESS IT, WE STILL GOT SOME TIME TO, TO FIGURE IT ALL OUT BECAUSE YOU GOT A DRIVER HERE, GOT THE BOOK, BUT WE GOT THE SYSTEM THAT NEEDS TO MATCH WITH WHAT THE BOOK SAYS. SO THOSE ARE SOME THE CLAIMS, UH, THAT WE FOUND. CHECK AT $10 A WEEK. IT IS $43 AND 33 CENTS A MONTH. I CAN PROMISE YOU IF YOU PUT YOUR TRASH IN YOUR CAR, TAKE IT OUT THERE, IT'S GOING TO COST YOU 80 BUCKS. WELL I KNOW THAT THE PLUS A VEST, PLUS THE VEST IF YOU DON'T HAVE ONE. BUT I JUST KNOW WHAT I'VE HEARD, WHAT I'VE SEEN, WHAT I HAVE PAID FOR WHEN I GOT TIRED OF THINKING PHONE CALLS ABOUT WHY AM I GETTING A BILL THIS TREE I COULD HAVE, I'VE DONE THAT AT LEAST FIVE TIMES SINCE I'VE BEEN HERE. I JUST PAID FOR IT MYSELF FOR THE CUSTOMER. BUT, UH, THE, YOU KNOW, LIEUTENANT AT SOME POINT, WHAT OPTION DO WE HAVE OTHER THAN HOLDING? HOW DO WE GET THAT ACCOUNTABILITY IN THERE? I KNOW, I CAN ONLY IMAGINE WHETHER IT BE A COMPUTER, PAPER, WHATEVER. EVERY TIME SOMEBODY CHANGES THERE'S AT LEAST FOUR POINTS. IT HAS TO BE CHANGED. YEAH. IT'S NOT JUST YOU. WELL, I MEAN THE LIST, THE DRIVER, THE TRUCK. UH, BUT AT AT, AT ANY RATE IT STILL COMES BACK TO IF EVERYBODY PUT THEIR TRASH IN A DUMPSTER OR GARBAGE CAN, WHATEVER WE WANT TO CALL 'EM. BECAUSE I REMEMBER THE FIRST NIGHT I WAS ON HERE, WE WERE ARGUING ABOUT GARBAGE BAGS. IF IT DIDN'T GO IN THE GARBAGE BAG, WE WASN'T GONNA PICK IT UP. BOY WE GREW FROM THAT . SO, UH, UH, IT, AND WITH ALL DUE RESPECT, UH, IT'S GOING TAKE SOME ENFORCEMENT 'CAUSE WE'VE ALWAYS DONE IT. LAST TIME I CHECKED CHIEF'S PRETTY BUSY. I DON'T THINK HE GOT TIME TO FOLLOW THE GARBAGE STRUCTURE AROUND. UH, AND I GUESS WE NEED TO TAKE THAT INTO CONSIDERATION WITH WHATEVER RULES WE USE. THAT IS TRUE. UH, ALL I'M [01:00:01] DOING IS STATING OBVIOUS YOU HAVEN'T GOT THE PROBLEM. WELL, I MEAN, CORRECT ME IF I'M WRONG, PLEASE. WATER, SEWERS, GARBAGE . CORRECT. THEY'RE SUPPOSED TO PAY FOR IT THEMSELVES. THEY'RE SUPPOSED TO PAY FOR THEIR OWN OPERATION. THEY'RE NOT SUPPOSED TO BE PAID FOR IT BY THE TAXPAYER. CORRECT. I DON'T KNOW. I JUST, THIS HEAVY HAUL THING, I'M THIS HEAVY TRUST THING I'M STILL HUNG UP ON. 'CAUSE RIGHT NOW WE HAVE SPOILED PEOPLE. LIKE YOU SAID, IT'S GONNA BE HARD TO CHANGE, UH, TO HEY, THEY DIDN'T PICK THAT TREE UP. YOU KNOW, WE AIN'T DOING THAT NO MORE. WHAT DO YOU MEAN? I'VE ALWAYS DONE IT? WELL, YOU NEED TO CALL SOMEBODY AND GET SOMEONE TO HAUL IT OFF AND WRITE THEM A CHECK. YOU'RE NOT PAYING THE CITY. AND THEN WHAT HAPPENS THOUGH, WHEN IT GETS 10 FOOT TALL? BECAUSE I DON'T HAVE THE MONEY. I CAN'T GET IT HAULED ALL, LIKE I SAID, ANYTIME I'VE HAD ONE, THE CITY HAS HAULED IT OFF CHEAPER AND I COULD HIRE ANYBODY ELSE. I MEAN, WE'VE HAD TO TELL PEOPLE THEY HAVE A TREE SERVICE OUT THERE TO CUT THE TREE DOWN. THEY'RE, THEY'RE SUPPOSED TO HAUL IT OFF AND A LOT OF TIMES ONE I CUT DOWN, PUT OUT THERE. WELL THAT'S 'CAUSE THEY GIVE TWO QUOTES. YEAH. QUOTES. CUT TREES DOWN A THOUSAND DOLLARS, CUT THE TREE DOWN AND HAUL IT OFF. 1500. OH, JUST LEAVE IT THERE. I'LL GET THE CITY PICK IT UP AND HERE WE GO A LOT LESS OFF. WE HAVE A LOT OF PEOPLE THAT BRING TRASH IN FROM OTHER CITIES TOO. MM-HMM . AND JUST DUMP IT ON THE SIDE OF THE ROAD. THAT GOES BACK TO MY HEAVY TRASH PICKUP BEING A CONCERN. JOHN, WHAT KIND OF SYSTEM IS IT THAT Y'ALL ARE USING? YOU SAID YOU HAVE A, SOME TYPE OF SYSTEM, BUT THEN YOU HAVE A, A BOOK. IS THIS LIKE AN OLD SCHOOL LIKE PRINTOUT TYPE OF BOOK? BASICALLY THE DRIVER HAS A, A FIND A BOOK THAT HAS YOUR MONDAY ROUTE ON IT. TUESDAY, THURSDAY, FRIDAY THERE'S A SATURDAY BECAUSE YOU HAVE A FEW ACCOUNTS, EACH DRIVER HAS IT. SO WHEN A CUSTOMER COMES IN HERE AND SAYS, OKAY, I WANT A DUMPSTER, THE COUNT IS SET UP AND THEN IT'S IT'S RELAYED DOWN THERE TO WHERE WE GO TO THE DRIVER. THE DRIVER'S GOTTA GET THAT UPDATE INTO THAT BOOK AND HE'S GOTTA FOLLOW THAT BOOK. NOW GRANTED THAT THESE DRIVERS, THEY START EARLY IN THE MORNING. THEY DO THIS EVERY SINGLE DAY. AND SO IF YOU DO A ROUTINE, YEAH, IT BECOMES A MEMORY WHERE YOU DON'T, THE BOOK IS, IS THERE, THERE YOU GOTTA REVIEW IT. UH, SO, BUT IF THERE'S AN UPDATE, IT'S LIKE I SAID, IT'S TWO TIMES A WEEK AND GOES FIVE TIMES A WEEK. HE, HE'S GOTTA KNOW THAT. OR IF IT GOES FROM FIVE TIMES, THREE TIMES, HE'S GOT, IS THERE A WAY TO KIND OF DO A UPDATED VERSION OF THAT TO WHERE WE HAVE LIKE, WELL THAT WAS ALSO PUTTING THINGS LIKE NUMBERS OR QR CODES ON THE DUMPSTER. IF YOU GO TO THIS NEW SYSTEM, UH, YOU CAN HAVE IT TO WHERE IT WILL SCAN A QR CODE ON THE DUMPSTER TO WHERE AT THAT POINT IT WOULD TELL YOU, NO, THIS IS NOT ENOUGH. YOU PICK UP. SO THAT WAY YOU CAN ASSURE YOURSELF THAT'S NOT IT. BUT YOU HAVE AREAS LIKE OVER THERE, UH, HAVE PICK FENCE. YOU HAVE FOUR DUMPSTERS IN ONE AREA WHERE EACH ONE OF THOSE DUMPSTERS IS ONE OF THE TENANTS ACCOUNTS DIFFERENT BUSINESS. SO WHEN YOU GO BY THERE, YOU'RE GONNA KNOW WHICH, WHICH ONE'S WHICH. YEP. OR YOU JUST PICK THEM ALL UP. BUT IF A CUSTOMER THERE IS PAYING FOR TWO TIMES A WEEK, ANOTHER ONE'S PAYING OR FIVE TIMES A WEEK, AND YOU PICK ALL OF 'EM UP EVERY TIME. SO THAT ONE TWO TIMES THEY'RE, THEY'RE, YEAH. BUT I MEAN, IT JUST, IT SOUNDS LIKE OUR, OUR SYSTEM'S A LITTLE OUTDATED AND NOW WE'RE BLAMING THE, WE'RE BLAMING OUR CITIZENS UP IN THEIR RATE BECAUSE WE'VE BEEN MISSING OUT ON WELL, IT'S, IT'S A TWOFOLD PROBLEM. YEAH. SO ON THE, ON THE, ON THE, ON THE COMMERCIAL SIDE, THAT'S, WE, WE HAVEN'T BEEN FOLLOWING THE BOOK. WE HAVEN'T BEEN UPDATING THE BOOK. WE HAVEN'T BEEN FOLLOWING IT. ON THE RESIDENTIAL SIDE, YOU'RE SEEING AND, AND BASICALLY AN ABUSE YEAH. OF HEAVY TRASH COMING IN AND ON, YOU KNOW, MULTIFAMILY, THEY'RE GONNA SCREAM, AND I DON'T BLAME 'EM BECAUSE THEY GET A LOT OF FOLKS THAT'LL DO A DRIVE BY. YOU'LL SEE A TRUCK PULL UP, DUMP THREE MATTRESSES AND HAUL A CHESTER DRAWER INTO THEIR DUMPSTER. WELL, THEY DON'T EVEN LIVE IN THE COMPLEX, AND SO THEY DON'T HAVE A MEANS OF CONTROLLING IT. UH, IN TERMS OF WHAT JOHN'S TALKING ABOUT, THE, THE, THE ABILITY, YOU KNOW, UH, WHEN I WAS IN GOALED, WE MOVED TO, UH, TEXAS DISPOSAL SERVICES AND THEY HAD A GEOTAG GPS TAG ON EACH CART. AND IT HAD TO BE IN A SPOT. THERE WAS AN X SPRAY PAINTED IN FRONT OF YOUR HOUSE. THAT'S WHERE THE CART WENT. AND IF IT WASN'T THERE, OR IF YOUR CART NUMBER DIDN'T JIVE WITH WHERE YOUR GPS [01:05:01] 'CAUSE YOU, HEY, I GOT AN EXTRA HEAVY LOAD THIS WEEK, I BORROW YOUR CART. YEAH, NO PROBLEM. YOU ROLL THAT CART DOWN TO, TO THE OTHER, PUT IT NEXT TO THE TWO CARTS, SUPPOSED TO, THEY PICK ONE UP. THEY DON'T PICK THE SECOND ONE UP BECAUSE IT'S NOT IN THE RIGHT SPOT. SO THERE ARE WAYS TO AUTOMATE THAT OR TO DO THAT. UM, BUT AT THE END OF THE DAY, WE'VE GOT THE CONDITION OURSELVES AND OUR CUSTOMERS INTO, INTO A SPECIFIC SERVICE LEVEL THAT'S ACTUALLY DOABLE FOR US AND MAKES ECONOMIC SENSE A NIGHTMARE. SO WHAT WE KIND OF NEED DIRECTION ON IS, IS WHAT RATE LEVEL ? YEAH. WHICH ONE? ANY MANY MONEY MOUTH. WHAT RATE LEVEL IS COUNSEL COMFORTABLE GOING TO, UH, AND WHAT SERVICE LEVEL ARE YOU WANTING TO PROVIDE FOR HOW MUCH SHORT? UH, RIGHT NOW ON AVERAGE, UH, 1.3 PERCENTAGE WISE, PERCENTAGE WISE? UH, THAT'D BE SIX BUCKS. THIS WOULD BE $10. OH. IN TERMS OF ACTUAL LOSS, RIGHT NOW, OUR OPERATING, THE, THE, THE OPTION ONE WAS, IT WAS LIKE WHAT, $6 INCREASE? UH, $7, SEVEN. BUT THAT, THAT INCLUDES THE EXACTLY WHAT WE'RE DOING RIGHT NOW. WE'RE JUST GOING OUT. THAT'S JUST WHAT WE'RE DOING RIGHT NOW. THAT IS NO INNOVATION. THAT'S STILL, THAT'S STILL TWICE A WEEK. YES, SIR. OKAY. WHAT KIND OF PERCENTAGE IS THAT BREAKDOWN? SO WE DID DO THE SAME PERCENTAGE STRAIGHT ACROSS THE BOARD. IF WE DID THE SAME PERCENTAGE STRAIGHT ACROSS THE BOARD. UH, LET ME GET BACK OVER HERE TO OPTION ONE. YOU SAID IT WAS $10. WELL, IF WE WENT 10, SO THAT'S A $7 INCREASE OPTION ONE IS IT'S AN AGGREGATE 31% INCREASE ACROSS THE BOARD. THAT'S WHAT THE INCREASE IS ON THE OTHER STUFF. YES. $7 ON, $7 ON RESIDE, RESIDENTIAL RESIDE. AND THEN THE INCREASES ON ALL THE COMMERCIAL. YEAH. THE PERCENTAGE INCREASES ON THE OTHER ONE. SO THE AGGREGATE REVENUE INCREASE IS 31%. RIGHT? YEAH. OUR MARGIN RIGHT NOW WE'RE ABOUT, SO WE, WHAT'S OUR, OUR, OUR OLD PRICE VERSUS OUR NEW PRICE? WHAT'S THE, SO 24, HELP ME WITH THE PERCENTAGE. WE'RE AT 20. WE'RE AT 24. SO ON A RESIDENTIAL, AND THAT'S PART OF THE PROBLEM. IT'S SO COMPLEX, RIGHT? SO WE'RE TRYING TO GET IT A LITTLE BIT MORE SIMPLISTIC, BUT IF YOU'RE INSIDE THE CITY LIMITS RIGHT NOW, YOU'RE PAYING $24 A 9 CENTS A MONTH TO HAVE YOUR GARBAGE PICKED UP. OUR ACTUAL COST, IF YOU JUST WANNA AVERAGE IT OUT, IS ABOUT $30 AND 76 CENTS PER, SO WE NEED A 24% INCREASE ROUGHLY. AND WE'RE AG WHAT WE'RE TRYING TO DO. NO, THAT'S ISN'T THAT GOOD? WELL, WHAT WE'RE TRYING TO DO IS, IS BALANCE IT BY SAYING THAT THE CUSTOMER'S GONNA GET A LITTLE BIT OF A BREAK ON THE PERCENTAGE INCREASE, AND WE'RE GONNA PUSH THE ONUS ON THOSE HEAVY END USERS TO POLICE THEMSELVES BETTER AND UP THEIR CHARGES. SO YOUR RATE, YOUR ACTUAL RATE INCREASE FOR HOTELS AND MOTELS IS TWICE WHAT IT IS ALMOST, VERSUS YOUR STANDARD RESIDENTIAL. WELL, WHEN THOSE PEOPLE, WHEN THOSE PEOPLE GET CHARGES FOR PICKING UP EXTRA STUFF THAT THAT'S ILLEGALLY DUMPED THERE, EVENTUALLY THEY COULD PUT SOME CAMERAS UP AND THEY GOTTA CATCH SOMEBODY. RIGHT. THEY COULD CATCH THE PEOPLE THAT'S DUMPING IT ILLEGALLY SO THEY HAVE SOMEBODY TO GET THEIR MONEY BACK FROM 'EM. EVERY DUMPSTER THERE IN NEW BRONSVILLE, TEXAS IS LOCKED SMART. I JUST LEFT A TAX HEARING THERE, SO I'M SORT THEM ANYWAY. ANYWAY, BUT ANYWAY, YEAH, I MEAN, BUT THEY DON'T HAVE LANDFILL. SO TRASH IS HUGE, RIGHT? THEY HAVE THE, NOT THAT IT'S NOT HERE, BUT SAME PROVIDER THAT WE HAD IN GOLIA HAD, UM, AND THEY, YEAH, THEY, THEY'RE ABOUT THAT. THERE'S NO LANDFILL WITHIN, I FORGET WHAT THE, IT'S 67 MILES. COOL. ALL IN LITTLE TOWNS BUILT DUMP TRASH. THEY'VE GOT ALL IN BEER CANS, RECYCLABLE, . WOULD THE THIRD PARTY INCLUDE RECYCLING OR NO, BECAUSE I MEAN, MOST OF, SOME OF THE ONES THAT ARE AROUND TOWN, YEAH. RICHWOODS GOT GREEN AND BLUE DUNKING. SO, UH, IT JUST DEPENDS ON YOUR PROVIDER. UH, I KNOW THAT WASTE CONNECTIONS IS NOT DOING RECYCLING. WASTE MANAGEMENT DOES, UH, GFL DOES, UH, THEY ALL TAKE THE, IT COMES AT A RATE. I MEAN, THAT'S, THAT'S AN EXTRA, IT'S AN EXTRA CHARGE. I KNOW. UH, BUT THEY DO THAT BECAUSE THEY HAVE ACCESS TO THE MUR, THEY OPERATE IT, THEY CONTRACTUALLY HAVE A RELATIONSHIP THERE. SO THAT'S WHAT I'M SAYING. I KNOW SOME PLACES HAVE GOT DIFFERENT COLOR DUMPSTERS. YOU PUT TRASH IN ONE AND RECYCLE THE OTHER. RECYCLE IN THE OTHER ONE. YEAH. YEAH. I KNOW THAT WAY BACK. I LIKE THE ARM IDEA, BUT I, I SEE FOUR BY FOURS GETTING CUT UP IN PIECES THAT'LL GO INSIDE THE CAN IF YOU QUIT PICKING UP HEAVY TRASH. AND THEN IS THAT COMES MAINTENANCE AND REPAIRS WITH THE ARM ON THE, WELL, AND THAT GETS BACK TO, SO [01:10:01] LIKE IF YOU GO TO A THIRD PARTY RIGHT NOW, IF YOU'RE GONNA PUT OUT BRUSH, YOU HAVE TO HAVE IT CUT TO A CERTAIN LENGTH, BUNDLED A CERTAIN WAY. STACKED. YEAH. SO THERE'S, THERE'S A LOT MORE SKIN IN THE GAME FOR THE OWNER. THERE'S SOME HAVE THREE COUNTRIES ON THE SIDE OF THEIR HOUSE. ONES FOR RECYCLE, ONES BRUSH, ONES FOR TRASH. AND CERTAIN TIME, EVERY HURRICANE THAT WE'VE EVER HAD HERE, WE'VE TOLD PEOPLE PUT CONSTRUCTION DEBRIS IN ONE PILE, PUT BRUSHES THE OTHER PILE, AND NINE OUT OF 10 OF THEM PUT IT ALL TOGETHER. AND IF YOU'VE GOT CONSTRUCTION DEBRIS IN WITH YOUR BRUSH DEBRIS, IT IS A DO ALL CONSTRUCTION DEBRIS. IT'S NOT, THERE'S NO BRUSH DEBRIS. RIGHT. DO THE CONTRACTORS WANNA PICK IT UP WHEN WE HAVE A, HOW DO YOU GET TO THAT POINT? TAKE CARE OF THAT? BECAUSE WE END UP GONNA PICK IT UP, BUT IF THEY DON'T AND WON'T, DO WE HAVE TO, WE WE END UP PICKING IT UP. YES. WELL, WE'VE PRACTICE PULL UP. IF IT'S PART OF A DISASTER, TYPICALLY WE COULD GET REIMBURSED FOR IT. RIGHT. , UH, I I'M JUST SAYING, HOW DO THEY HAVE TEETHING? WE DON'T. RIGHT. WELL THAT, THAT, IT COMES BACK TO THAT THINKING ABOUT MOST OF HOUSTON, IT'S IN A, A MUD WITH AN HOA OR SOMETHING LIKE THAT. AND THEN THE CITY IS ALSO ON TOP OF IT. BUT USUALLY IT'S THE HOA THAT SENDS YOU THE NASTY LETTER FIRST. SO HERE, YOU SAID EARLIER, IT'S GONNA BE A CHANGE NO MATTER WHICH WAY YOU GO. IT'S HAVE TO BE A CHANGE AND, UM, GONNA HAVE TO HOLD ACCOUNTABLE. WELL, I MEAN, I SAID IT'S, IT IS, IT IS AN ENTERPRISE FUND AND IT SHOULD BE DRAWN ON THE RESERVES FROM, FROM THE GENERAL FUND, FROM THE, DOES THE, THIS SECTION OPERATE BUDGET. DOES THE TRUCK DRIVERS THAT ARE PICKING UP TRASH NOW, DO THEY HAVE A RADIO ON WHERE THEY CAN COMMUNICATE, COULD COMMUNICATE BACK TO SOMEONE, CALL CELL PHONES? I DON'T KNOW. YEAH, I MEAN, THERE WAS RADIO AT ONE TIME, BUT THEY'RE NOT, THEY'RE NOT USING RADIO. OKAY. BECAUSE IT, IT SEEMS LIKE IF WE COULD UTILIZE, OF COURSE, IT'S ANOTHER STEP, UH, IF THEY COME UP TO AN OCCASION, THEY CAN CALL BACK TO WHO, CODE ENFORCEMENT OR SOMEBODY LIKE THAT. THEY'LL RUN OUT REAL QUICK AND HAMMER 'EM AT THAT ONE TIME . AND THAT WAY THEY, AND THAT WAY THE TRUCK CAN KEEP ON GOING AND NOT SLOW IT DOWN. KEEP YOU AFTER THAT DO WHAT? UNLESS THAT TRUCK DRIVER MADE THE EVERY, EVERYTHING COMES WITH A COST . WELL, THAT'S TRUE. THAT'S WHY I SAID THERE'S ANOTHER, LIKE I SAID, THERE'S GOTTA BE SOME ACCOUNTABILITY THERE. YEAH. WELL, SOMEWHERE IT SEEMS LIKE THE COST IS NO MATTER WHAT, IT'S GONNA FALL ON US AND WE NEED TO FIND SOMETHING THAT'S THE LEAST EXPENSIVE JUST TO GET THE RHYTHM GOING. TWO YEARS DOWN THE ROAD, THEY'LL FIND, LEARN. WELL, THAT WAS WHAT I WAS JUST WONDERING IS, I MEAN, ARE I'M THE WORLD STACKING BOXES, BOXES AND SETTING THEM OUT THERE? TRASH CAN, BUT PAST TRASH DON'T GET BACK. YOU'RE NOT BECAUSE WE WOULD DIVEST OURSELVES WITH THE EQUIPMENT AND THE PERSONNEL. WELL, BECAUSE THAT'S, BUT, BUT IF YOU USE THAT SAVINGS FOR THREE YEARS, YOU CAN START YOUR OWN SYSTEM. IN THEORY. IN THEORY, IN THEORY. IF YOU PLAN AND YOU START IN A PERFECT RIGHT. I KNOW, BUT I'M JUST, YOU KNOW, I'M JUST RIGHT. WELL, AND THAT'S WHEN, WHEN PUTTING TOGETHER THESE RIGHT OPTIONS AND MODELS, MY THOUGHT WAS IS WE NEED TO BE BUILDING A CUSHION OR BUILDING A CAPACITY TO IMPROVE THE SYSTEM, WHETHER IT'S US OR A THIRD PARTY PROVIDER. RIGHT. UH, BUT IT'S BEEN MY EXPERIENCE WHEN YOU'VE HANDED THE REINS TO A THIRD PARTY, WHEN YOU HAND SOMETHING OVER YOU VERY, IT'S VERY DIFFICULT TO GET BACK. YEAH. I, I LOOK TO OUR COLLEAGUES IN THE SOUTH TRYING TO RECLAIM THEIR OWN WATER SYSTEM FROM A THIRD PARTY PROVIDER. YEAH. THEY'VE HANDED IT OFF. THEY DON'T HAVE THE MEANS REALLY, OR THE PERSONNEL TO TAKE IT BACK OVER AND IT'S TURNED INTO A FIGHT. SO YEAH. YEAH, I SAW THAT. UM, I BE ONCE A WEEK. A WEEK. OH YEAH, NO, IT GOES, UH, YEAH. YEAH. NO, THAT, THAT'S EVERY, EVERYTHING. WHEN, WHEN YOU GET INTO THAT NEGOTIATION, EVERYTHING BECAME, IT BECOMES A NICKEL AND DIME EVENT. IT, YOU KNOW, WELL, IF WE'RE GONNA DO THAT, THEN WE'RE GONNA CHARGE YOU THIS. WELL, I MEAN, YOU KNOW, WE, WE'VE TRIED TO, JUST MY [01:15:01] PERSONAL OPINION, WE'VE TRIED TO COMPRESS A WHOLE LOT OF DATA AND A VERY SHORT PERIOD OF TIME. SO I WOULD SAY THAT WE PROBABLY SHOULD TRY TO MAINTAIN STATUS QUO OVER THIS NEXT YEAR, DO THE RESEARCH MONTHLY SO THAT WHEN IT COMES TO BUDGET TIME NEXT, NEXT YEAR, WE'VE GOT REAL TIME ACCURATE NUMBERS THAT WE'RE DOING IS RIGHT. WE'RE PICKING UP, WE'RE GETTING PAID FOR WHAT WE'RE PICKING UP AND WE'RE DOING IT RIGHT. AND THIS IS WHAT IT'S COSTING US. AND THIS IS WHAT WE'RE, WHAT WE'RE BRINGING IN. FIND A WAY TO IMPROVE ON THE SYSTEM WITH THE BOOK. AND THEN YEAH, LIKE I SAID, IF WE'RE PICKING UP SOMEBODY FIVE TIMES A WEEK, THEY'RE PAYING TWICE. WE NEED TO START CHARGING THEM FIVE TIMES AND THEY NEED TO, THAT'S WHERE WE'RE, IT'S GONNA TAKE ACCUMULATION OF ALL THE DEPARTMENTS MAKE THAT HAPPEN. RIGHT. AND, UH, THERE, BUT THAT'S WHAT I SAY. IF WE DO IT RIGHT FROM, IF WE DO IT RIGHT FOR US, THAT OVER THE NEXT, IF WE DO IT RIGHT OVER THE NEXT NEXT FISCAL PERIOD, WE SHOULD HAVE CORRECT DATA. I AGREE. WELL, BACK, BACK YEARS AGO, AND I THINK IT WAS YOU CJ, THAT THAT DID THAT, YOU SENT OUT LITTLE BITTY, UH, POSTCARDS OF DOS AND DON'TS AND STUFF. I THINK THAT WAS RIGHT WHEN I, RIGHT BEFORE I GOT HERE. BEFORE YOU GOT, YEAH, THAT WAS LIKE RIGHT WHEN I CAME. JUST COMMUNICATION. YOU KNOW, YOU MAY BULK STAMPS ON CARDS OR SOMETHING LIKE THAT, GET HALF OF THE CITIZENS WAKE UP AND SAY, HEY, I NEED TO DO BETTER. 15 STAMP. OR IT'S, WE GOT PEOPLE, WE'VE GOT PEOPLE THAT THE DAY THEIR HEAVY TRASH IS PICKED UP THE NEXT DAY, THEY START PUTTING IT BACK OUT THERE AGAIN. WE GOT PEOPLE THAT PUT THEIR TRASH OUT ON MONDAY AND THEIR PICKUP DAY IS TUESDAY AND THE TRASH IS FROM ONE OTHER STREET TO THE OTHER. SO WHAT YOU WERE SUGGESTION, POSSIBLY JUST STAY STATUS QUO. IS THAT KEEPING THE RATES WHERE THEY'RE AT RIGHT NOW? NO, I THINK WE SHOULD INCREASE. I THINK WE NEED TO INCREASE. THAT'S WHAT I'M SAYING. I MEAN, WE NEED TO, WE NEED TO GO WITH WHAT IT'S GONNA TAKE TO OPERATE. TALKING JUST FROM HERE. YEAH. OKAY. STATUS QUO HAS BEEN AN INCREASE EVERY YEAR. MM-HMM . NOT KEEP UP. WELL, WHEN HE SAID THAT, I WAS GOING TO MAKE SURE TO STAND LIKE YOU'RE NO, NO, I'M NOT TALKING, I'M NOT TALKING ABOUT OPERATING IN A DEFICIT. NO, BUT NONE OF THESE ADDRESS OUR MATTRESS PROBLEM DOES. WELL, NO. THE MATTRESS PROBLEM ENDS UP BECOMING WITH THE ONUS IS GONNA BE TO PUT THE MATTRESS PROBLEM BACK ONTO THE MATTRESS DUMP B AND AND THAT'S GONNA, THAT'S GONNA TAKE SOME DOING THROUGH POLICY BASICALLY TO SAY THAT YOU'RE RESPONSIBLE FOR DISPOSAL OF YOUR OWN MATTRESSES. WE JUST CAN'T PICK UP PICK THOSE UP ANYMORE. WHAT'S IN THE ORDINANCE RIGHT NOW? DON'T, DON'T WE HAVE LIKE A LIMIT OF HOW MANY CANS? WE'VE GOT A LIMIT ON SIZE AND, AND EVERYTHING ELSE, BUT WE'VE GOTTEN THEM CONDITIONED. THAT'S, THAT'S WHERE JOHN'S TALKING ABOUT HAVING EVERYBODY ON THE SAME PAGE. WE SAY ONE THING AND IT IN IN THE ORDINANCE AND WE SAY ONE THING IN OUR POLICY, BUT THEN WE'VE GOTTEN OUR FOLKS CONDITIONED TO WHERE YEAH. HEY, I I IT'S OUT THERE. THEY'RE GONNA PICK IT UP. WE'RE OUT. YES. , WE ARE LOOKING AT SOME OPTIONS ON THE MATTRESS. UH, IT'S GONNA TAKE SOME TIME TO GET THAT DONE. YES. WITH THAT. AND IF WE DO THAT, IT MIGHT BE A REVENUE SOURCE. , WHAT YOU WERE SAYING ALSO, UH, WOULD THAT INCLUDE THE OF THE, THE, WE HAVE? WELL, SO THAT, THAT'S A, THAT'S A, A BIG DECISION TO MAKE. AND THAT'S ONE OF THE THINGS THAT COUNCIL DOES NEED TO GIVE US SOME DIRECTION ON IS, IS WE HAVE OUR, OUR FLEET IS AGING. UH, WE CAN SINK, WAS IT TWO, THE NEW DRILL LOADER RIGHT NOW? SEVEN, EIGHT YEARS OLD. YEAH. SO WE'RE, WE'RE UP AGAINST OUR HARD NUMBER IN, IN THE EQUIPMENT REPLACEMENT FUND. AND DO WE WANT TO SEEK MORE CAPITAL INTO A SYSTEM THAT WE MAY DEVOLVE NEXT YEAR OR DO WE WANT TO CONTINUE TO RUN ON BANDAID? I MEAN, WHAT IS, PERSONALLY I WOULD SAY IF WE'RE GONNA TRY, IF WE'RE GONNA OPERATE JUST LIKE WE'RE OPERATING NOW, I DON'T THINK WE NEED TO MAKE A HUGE INVESTMENT AT THIS POINT. 'CAUSE IF, IF IT COMES TO THE POINT WHERE WE GO TO THE AUTOMOTIVE SYSTEM, WE'RE GONNA HAVE TO, RIGHT? WE'RE GONNA HAVE TO INVEST IN, CAN WE, CAN WE GO ANOTHER YEAR WITH REPAIRS? WE'LL BE FACING WITH REPAIRS. I MEAN WE, WE RIGHT NOW WE, WE'VE HAD TWO TRUCKS GO DOWN AND WE PULL EVERYBODY [01:20:01] IN AND WE'RE SITTING THEM OUT WITH, UH, FRONT END LOADERS AND ON ALL SIDES OF IT GOING OUT THERE, LOAD EVERYTHING. YOU CAN GET THE ZONE DONE IN A DAY. TYPICALLY THEY CAN GET THE ZONE DONE WITHOUT THE ISSUES. ONE KEY GARBAGE TRUCK TO FINISH ZONE OUT. CAN YOU ADOPT WHAT THE OPTION TWO RATE TO BUILD UP SOME SURPLUS TO REPAIR THESE TRUCKS OVER NEXT YEAR? WELL, THAT'S, YEAH. WE, WE CAN, WELL, I MEAN THIS, THIS ONE HAS YEAR WAY, OR JUST LIKE THE WATER. THIS ONE HAS WHAT? THIS ONE HAS 80 CENTS, 80 CENTS A CUSHION. UH, THE NEXT ONE WE GO TO, UH, NEXT ONE WE'VE GOT ALMOST FOUR, $4 AND 80 CENTS. YEAH. ASSUMING THAT A MONTH OR A MONTH. YES SIR. EVEN IF YOU WERE TO ORDER A TRUCK, EVEN THROUGH THE TRUCK, YOU'RE, YOU'RE TALKING A YEAR OUT TRUCK. YEAH, THAT'S WHAT I SAY. I MEAN, EVEN GETTING ONE, YOU'RE NOT GONNA GET ONE THIS YEAR. RIGHT. THIS, SO I MEAN, WHAT WE'VE GOT, WE'RE GONNA HAVE TO MAKE WORK TO FOR AT LEAST A YEAR. THE LAST ONE THAT WE PURCHASED TOOK, UH, WELL, THE SIDE TRUCK TOOK 15 MONTHS TO GET. YEAH. BECAUSE I'VE GOT ONE IN HAND THAT'S SUPPOSED TO BE DELIVERED TO HAND AS, UH, BACKING UP MARCH. AND I STILL HAVEN'T RECEIVED IT YET. I RECEIVE IN SEPTEMBER, AND THAT'S 18 MONTHS. IF IT'S OVER A TWO TON CAPACITY, EVERYTHING IS, IF IT'S OVER TWO TON CAPACITY, EVERYTHING'S SIX MONTHS OUT. . SO ONLY THING, ONLY THING YOU CAN GO BUY RIGHT NOW IS A HALF TON THREEQUARTER TON. SO WHAT WE'RE SAYING IS, IS EXPLORER RATE OPTION TWO TO PICKUP COVER. SO RATE OPTION TWO WOULD ALLOW US TO BUILD SOME CAPITAL TOWARDS A FUTURE CAPITAL PURCHASE. AND IT WOULD ALLOW US OR REPAIRS OR REPAIRS TO GET US THROUGH UNTIL WE'RE ABLE TO MAKE A CAPITAL PURCHASE WITHOUT A SIGNIFICANT CAPITAL PURCHASE THIS YEAR. NOBODY WANTS PULL TRIGGER, BUT I THINK OUR HANDS ARE TIGHT. NO, WELL THAT'S, LIKE I SAID, THERE IS NO GOOD HAPPY OPTION. THERE'S NO HAPPY ENDING ON THIS ONE. AND SO WE'RE TALKING ABOUT OPTION TWO, THE 34 93. YEAH, I MEAN, I'M DOING THE MATH ON IT. IT RAISES, AND THIS DOESN'T EVEN DO, UM, A HEAVY TRASH PICKUP. IT'S ABOUT A DOLLAR 25 IF MY MATH IS NOT TOO FAR OFF PER PICKUP A MONTH IF YOU'RE DOING TWICE A WEEK. RIGHT. SO IT'S NOT, I MEAN, IT'S NOT LIKE EARTH SHATTERING. IT'S NOT. NO. AND AND THEN YOU INCLUDE THAT, THERE'S LIKE, NO, THE FEE FOR THE HEAVY PICKUP, IT'S JUST ALREADY IN THERE. UNLESS WE WERE TO BREAK THAT OUT AND BE LIKE, NOW WE'RE GONNA HAVE A $3 A MONTH HEAVY TRASH PICKUP FEE OR WHATEVER. AND YOU KNOW, THAT'S AN OPTION TOO. WELL, HONESTLY, WHAT WHAT I ENVISION IS, IS GETTING TO A STANDARDIZED AMOUNT THAT WE PICK UP AND THEN COMING BACK AND SAYING, IF YOU'RE GONNA BE PICKED UP, IF YOU'VE GOT A, IF YOU'VE GOT RESIDUAL TRASH OUTSIDE OF WHATEVER THAT PARAMETER IS, LET'S SAY NINE FIVE TOTAL GALLONS PER HOUSEHOLD, THEN YEAH, WE'RE GONNA CHARGE YOU FOR THAT RATE. WE'RE GONNA CHARGE YOU WHAT IT COSTS US TO TAKE IT. SO, OKAY, WE'RE TALKING ABOUT MAYBE A 45% INCREASE IN TRASH. WHAT, WHAT ABOUT THE REST? OUR WATER RATES AND TRASH. SO WATER RATES, UH, AND I DON'T HAVE MY LAPTOP WITH ME, I APOLOGIZE, BUT WE, WE BUILT IN A NET 9.5% INCREASE THERE SEVEN AT THAT DRIVEN BY BWA. SO, SO THAT'S ANOTHER 9% INCREASE. YEAH. SO YOUR TOTAL BILL, AND I APOLOGIZE, I SHOULD HAVE, I, I DON'T THINK I STUCK THAT IN THE SPREADSHEETS. LEMME GET DOWN TO WATER BY VOLUMETRIC. IT'S NOT THAT MUCH BECAUSE WE END UP HANGING OUT BACK TO BWA, BUT YOU CAN TAKE A LOOK. WE'RE TALKING ABOUT A, AN INCREASE OF ABOUT 9% BETWEEN THE TWO AT WHICH WE NET ABOUT FOUR AND A HALF TO FIVE, RIGHT? YEAH. AND THEN IF I RECALL CORRECTLY, CAN YOU GRAB MY LAPTOP? IT'S IN MY OFFICE ON THE THING. SORRY. YEAH. AND THEN ON TOP OF THAT, OUR RATE, OUR PROPERTY RATE IS GONNA GO UP AS WELL. RIGHT? RIGHT. IT'S TRIPLE WHAMMY. IT'S NOT A GOOD YEAR. SO [01:25:01] I MEAN, THIS IS, THIS IS, UH, THIS HAS BEEN THE WORST. I ALWAYS SAY IT'S A HARD YEAR, BUT THIS HAS BEEN THE HARDEST YEAR TO TRY AND FIGURE THE BUDGET OUT BECAUSE WE'RE IN A POSITION WHERE OUR COSTS HAVE EXPONENTIALLY INCREASED OVER THE PAST FIVE YEARS. WE'VE TRIED TO INCREMENTALLY STAY WITH IT, BUT IT'S ALL CATCHING UP TO US AT ONCE. WE ARE EXPERIENCING OUR HIGHEST HEALTH INSURANCE INCREASE THAT WE'VE SEEN SINCE I'VE BEEN HERE IN MY SEVEN YEARS. WE'RE SEEING GAS, EVERYTHING'S GOING THROUGH THE ROOF. YEAH. AND THAT STANDARD THREE TO 5% IS NOT WORKING. NO, IT'S NOT WORKING. THAT ANNUAL INCREASE PAYCHECK. YEP. GARBAGE TO HAMBURGERS DOESN'T WORK ANYMORE. NO. DUNNO IF A HAMBURGER, THAT'S WHAT I'M SAYING. SO IN THAT THREE TO 5%, THERE'S NO MORE DOLLAR MENU ANYMORE. YEAH. HARDLY DOLLAR STORES DOESN'T MENU. NO DOLLAR THAT WENT OUT IN HULU DON'T. RIGHT. PAYING $3 FOR SNICKERS, THE PERCENTAGE RATES DOES SEEM TO BE HIGHER THAN THE ACTUAL DOLLAR RATE WHEN YOU PUT IT IN. NO. YEAH. YEAH. AND THAT'S, AND THAT THERE'S ALWAYS THAT STICKER SHOCK WHEN YOU SAY, WE'RE GONNA GO UP 30%, BUT YOU REALIZE THAT'S $10. AND HIS MAYOR PUT IT, THAT'S A PACK OF CIGARETTES, TWO TUBS OF BLUE BELL, A 12 PACK OF SODA A MONTH. UH, LET ME NOT SURE YOU BUYING YOUR BLUE BELL, BUT I DON'T THINK YOU GET TWO THAT NO, THEY'RE LIKE $8 A PIECE. I TOLD HIM ONE FOR EIGHT, NINE. SO, UH, IF WE, IF WE TAKE A LOOK, UH, THE, THE MONTHLY I TOLD HIM LESS ON SALE TO, TO ANSWER WHERE, WHERE YOU'RE TRYING TO GO IS WHAT'S THE AGGREGATE INCREASE ON A UTILITY BILL? SO RIGHT NOW, UH, OUR AVERAGE RESIDENTIAL STANDARD SINGLE FAMILY IS $90 AND 22 CENTS WITH THESE CHANGES, INCLUDING THE RATE CHANGE IN THE WATER AND THE RATE CHANGE IN THE SOLID WASTE GOES TO 1 8, 1 0 8, 1 0 8 57. SO ABOUT 20 BUCKS, 19 BUCKS. 28, RIGHT. ROUGHLY. YOU THINK ABOUT IT, YOUR GARBAGE IN YOUR WATER IS PROBABLY YOUR TWO MOST IMPORTANT PILLS. HAVE RUNNING, I MEAN, A LOT OF PEOPLE CAN JUST TURN THEIR AC TO A 78 DEGREES AND SAVE 10 BUCKS A MONTH TO COVER IT. OH YEAH. WHICH ONE? IT'S NOT A HUGE CONTROL. HUH? HAVE CONTROL. YEAH, THAT'S THE PROBLEM. BUT IT'S LIKE, I MEAN, IT'S LIKE A DOLLAR 25 PER PICKUP PER MONTH. AND IT'S, TO ME IS NOT EARTH SHATTERING TO THE LANDFILL, HUH? PROBABLY. YEAH. THAT'S ALL IT TAKES IS ONE TRIP OUT THERE. IT'S A LITTLE BIT WET. YOU GO OUT THERE AND YOU REALLY BE, HEY, WHATEVER YOU WANT, I'LL PAY. IN FACT, IF, YOU KNOW, IF OUR RESIDENTS CALL US AS COUNCIL MEMBERS, WE'LL SAY, OKAY, I'LL GO WITH YOU. LET'S GO SEE HOW, WHAT IS LIFE? WE'LL GO CALL JEFF AND JEFF CAN TAKE US OUT THERE, PULL YOU OUT. AND THEY'LL STILL CHARGE THE SAME AMOUNT PAY. IT'LL STILL PROBABLY MORE EXPENSIVE. SO WHAT DO YOU NEED FROM US? JUST THE DIRECTION, BECAUSE YOU'RE NOT TAKING THE VOTE ON ANYTHING. YES, I KNOW WE'RE GONNA DO THAT, BUT, BUT WHAT I'M HEARING IS, IS WE'RE LEANING TOWARDS OPTION TWO ON RATE MODEL AND STICKING WITH OUR STANDARD RATE WITH NO SIGNIFICANT CAPITAL INVESTMENT THIS YEAR. IS THAT, AM I INFERRING THAT CORRECTLY? YEAH, I'M GOOD WITH THAT. I DON'T, I DON'T LIKE THE PRICE OF OPTION TWO BANDIT THOUGH. YEAH, I MEAN, FOR ME, HE WAS ASKING CJ HE WAS ASKING YOU IF YOU HAD SAID SOMETHING, ESPECIALLY AFTER YEAR THREE THAT WE THE DECREASE IN THE, UH, RESERVE. YEAH, I, I MENTIONED THE DECREASE IN YOU TALKING ABOUT THE PULL DOWN FROM THE GENERAL FUND BUDGET OR RESERVE THAT WE'RE, WE'RE DOING, YOU MENTIONED BEFORE . YES. BUT WE'RE ON THE LIST. YES. UH, WE ARE LOOKING AT ALSO, UH, SO IF YOU RECALL TWO YEARS AGO IT WAS, UH, IN 21 WE, WELL, IN 21 IS WHEN WE ADMITTED OUR CONTRACT. SO IN 21, WE ADMITTED OUR CONTRACT TO TAKE ADDITIONAL WATER ON THE SUPPOSITION THAT BASF WAS GONNA BE A CUSTOMER AND A, AND A HIGH VOLUME CUSTOMER FOR A LONG TIME. THEIR USAGE HAS DROPPED, UH, FASTER THAN, UH, A LOT OF ONE HIT WONDERS OFF OF, OFF A MUSIC CHART. , UM, WE'RE DOWN, WE WERE LAST YEAR'S SALES WAS AT 2.2 OR WE WENT TO, UH, 1.5. WELL, WE, I I WAS TALKING ABOUT, WE PREDICATED THAT BY, BECAUSE WE [01:30:01] WERE GONNA BE PROVIDING WATER TO AN INDUSTRIAL PARTNER WHO WE EXPECTED TO USE A LOT MORE, AND THEIR DRAW HAS DROPPED TO MINIMAL AND IT'S SUBSEQUENTLY COME TO LIGHT THAT THEY ARE ACTUALLY BUILDING THEIR OWN RESERVOIR TO PROVIDE THEMSELVES WITH THEIR OWN WATER SO THAT IT'S IN THEIR CONTROL, WHICH MEANS WE'RE JUST NOW A SAFETY VALVE. SO WE NO LONGER NEED THAT EXCESS CAPACITY. SO, UH, WHAT WE'VE OFFERED TO DO IS SELL BACK THAT ADDITIONAL CAPACITY TO BWA, WHICH SHOULD NET US ABOUT $500,000 A YEAR IN NET REVENUE ON THE ENTERPRISE SIDE BECAUSE WE'RE NOT MAKING NO SALES ANYMORE UNDER THE CONTRACT. IS THERE, DOESN'T ANOTHER PARTNER HAVE TO BE WILLING TO BUY A OUR SHARE? THEY DO. UM, OR ANOTHER IF WE WANT TO, IF WE GET BACK HALF A MILLION, SOMEBODY'S GONNA BE WILLING TO TAKE THAT. YEAH. HAS TO BE BASICALLY I WILL, I SAY THEY GOT PEOPLE STANDING IN LINE. YEAH. I WILL TELL YOU THAT THERE IS ANOTHER MUNICIPALITY THAT HAS ALREADY STARTED CALLING OTHER CITIES SAYING, WE WANT YOUR WATER NO FURTHER NORTH. OKAY. ONE OF THEIR PARTNERS. OKAY. OH, I KNOW HOW THAT IS. OKAY. SO I THINK WHAT WE'RE LEANING FOR IS THE, IS THE OPTION TO KEEP IT THE TWO PICKUPS A WEEK AND HARD OR HARD HEAVY TRASH . RIGHT. AND SO, BUT WITH NO NEW CAPITAL PURCHASE, SO WE'LL, WE'LL, WHEN WE GET TO BUDGET FINALIZATION, WE WILL HAVE THOSE NUMBERS PRESENTED TO YOU. BUT THAT, THAT REALLY ENDS UP LOOKING LIKE, AND I'M SORRY IF I'M GIVING ANYBODY AN EPILEPTIC SEIZURE, I STARTED CERTAIN, HAVE AN EPILEPTIC SEIZURE THAT LOOKS LIKE THIS, UH, ROUGHLY, UH, YOUR COST GOES DOWN TO IF WE'RE NOT GONNA DO THE CAPITAL PURCHASE, WELL IT STAYS AT $2.2 MILLION. UH, SO IS THAT THE VERSION OF ONE? THAT'S VERSION ONE, BUT THAT'S THE ACTUAL REVENUE. SO LET ME, I CAN, UH, HOLD ON. GIMME TWO SECONDS, JOHN. IS, DO, DO THESE TRUCKS HAVE STANDARD DAILY, WEEKLY MAINTENANCE PROGRAMS ON 'EM? WELL, THEY, THEY DO MAINTAIN THE TRUCKS. I MEAN IT'S, IT'S RIGHT NOW THE TRUCKS ARE SO OLD THAT, I MEAN, YOU COULD DO A MAINTENANCE ON, THEY GO OUT THERE AND YOU BUST A LINE OR EVEN THE BACK CYLINDER BRAKE, UH, AND IT'S YOUR, YOU'RE SITTING DOWN PERFORMANCE TO GET THE REPAIR DONE AS QUICK AS POSSIBLE. GET ON ROAD. SO THE MAINTENANCE, YES, THEY DO THE ALL CHANGES, STUFF LIKE THAT HERE. BUT AS FAR AS EASE TO THAT HEAVY TYPE OF STUFF, IT'S EASIER TO SEND IT THERE FOR THAT TYPE WORK. NOW THEY DO A LOT OF THE CHANGE OUT CYLINDER. WE GET THE CYLINDER HERE, THEY WILL, THEY WILL CHANGE OUT THE CYLINDER, BUT WE DON'T HAVE DEMAND POWER OR THE EQUIPMENT DO SOME OF THAT STUFF. IN THAT CASE, IT'S BETTER TO SEND IT THERE, LET THEM FIX IT, THEY GET IT DONE AND OUT BACK TO US AS QUICKLY AS POSSIBLE. WHAT MEAN? BUT I MEAN THAT THE, IF IT'S NOT THE REPAIR OF THE TRUCK, IT'S THE METAL IN THE TRUCK. I MEAN THE METAL IN THOSE TRUCKS ARE DRILL THIN. YOU GOT HOLES IN WHERE IT LEAK. UH, SO THAT'S WHY I SAID A MINUTE AGO, IT WILL REQUIRE REPAIRS OF THE TRUCK TO KEEP IT GOING. YEAH. I MEAN, IT'S NOT LIKE THEY'RE, THEY'RE NOT USED HEAVY EVERY SINGLE DAY. I MEAN, THEY'RE USED FOUR DAYS A WEEK. AND WHAT IT, IT'S IN THE TRASH, BUT IT, IT'S A DETERIORATION IN THERE ANGLE. IT'S A LOT OF MOVING PARTS. YEAH. WELL I THOUGHT IT, I THOUGHT, I THOUGHT AT ONE TIME, I THOUGHT AT ONE TIME WE HAD ONE, ONE OLDER TRUCK THAT WE KEPT AS A RESERVE WHILE, WHILE THE OTHER ONES WERE BEING, WHILE ONE WAS DOWN, WE STILL IN THAT SHAPE OR NO, WE HAD THREE, THREE REAR LOAN TRUCKS. ONE IN THOUSAND 18, ONE, I WANT SAY LIKE 2012 DOWN DAY. WE'VE HAD THEM PULL TOGETHER THE OTHER TRUCK AND THEN PULL TOGETHER EVERYBODY ELSE AND THERE RUNNING WITH FLATS AND WELL, I KNOW WE BORROWED ONE, WE BORROWED ONE FROM LAKE JACKSON OUT. I MEAN WE'VE DONE A LOT OF, WE, WE NOT. OKAY. SO IF WE, IF WE GO WITH OPTION TWO, STAYING AT OUR CURRENT STANDARD RATE WITHOUT THE CAPITAL INVESTMENT, UH, THE NET DRAW IS 4 27 DOWN FROM 6 68. WHAT WAS THAT AGAIN? I'M SORRY. SO SHE WAS ASKING ABOUT THE BOTTOM LINE ON THE GENERAL FUND AND WHAT IT DOES. AND SO IF WE GO WITH RATE TO CURRENT OPERATIONAL MODEL WITHOUT A CAPITAL INVESTMENT IN A NEW TRUCK, IT BRINGS THE, THE NET REVENUE [01:35:01] OR THE NET DRAW FROM RESERVE DOWN FROM 6 68 TO 4 27. SO WE'RE 400 IN THE HOLE. YEAH, BUT WE'RE ALREADY 200 IN THE HOLE. AND THAT RESERVE IS FROM THE ENTERPRISE, NOT FROM WITH OPTION TWO. YEAH. YOU NEED 34 NO OPERATING. NO. THAT'S STILL, NO, THAT'S STILL GOOD. THAT'S GENERAL RESERVE. THINK WE COULD USE MONEY TO DO THAT FOR GARBAGE. CAN I ASK YOU A QUESTION? PROBABLY LOADED QUESTION. I SHOULD ASK YOU THAT. IS THERE A REASON AS FAR AS REPAIRS, WHERE WE'RE GOING? THERE'S A REASON WHY REPAIRS, WHAT, WHERE WE'RE GOING WHERE, WHERE WE'RE GOING WITH THEM? YOU TALKING ABOUT WHERE, HOW, WHERE THEY TRAVEL TO THE LANDFILL OR FOR REPAIR? OH, WHO DOES REPAIR PERFORMANCE REALLY? WE'VE HAD TO SEND THEM TO HOLLAND IN HOUSTON. WE'VE HAD TO HAUL TO HOUSTON ON SOME REPAIR PERFORMANCE LOCALLY WET. I, ANYBODY, I'VE GOT VAN VANGUARD AND EVERYTHING THAT I SEND MY TRUCKS UP TO THERE AND IT'S ADDITIONAL THREE WEEKS AND EVERYTHING BEFORE YOU GET IT BACK. WELL, IT'S TWO WORLDS. THERE'S A MECHANICAL SIDE, THEN THERE'S THE GARBAGE IN THERE, THERE'S THE TRUCK ABOUT RIGHT. YES. THE BED, THE BED REPAIRS BODY, THE DRIVE TRAIN AND THE, YEAH. COLLECTION SIDE. WE'VE DONE WELD ON INSIDE OF THE TRUCKS, SOME METAL PIPE IN THERE OVER THEM TRYING TO GET THEM THROUGH THE HYDRAULIC CYLINDER THING. I RELAY, I JUST SET FIVE 8,000. RIGHT. ABOUT $4,800. BUT WE PUT 'EM IN OURSELVES AND THE BID I GOT WAS A LOT, SO THAT'S FINE. WE ENDED UP DOING IT. WELL, I MEAN, I KNOW THE REST OF THE COUNCIL MEMBERS SAY OPTION TWO I, FOR ME IT'S JUST NO, I'M, IT'S BETWEEN ONE OR TWO FOR ME. IT'S HARD FOR ME TO VOTE FOR, FOR INCREASE GREATER THAN OPTION ONE. YEAH. I MEAN, NO, I AGREE. IF, IF YOU CAN PUT, I WOULD SAY IF YOU COULD GIVE US THE NUMBERS FOR BOTH, I MEAN AT THE END OF THE DAY, I, WE'LL, WE'LL PROBABLY, OKAY, WELL , SO WE HAVE TO POST A BUDGET, A PROPOSED BUDGET, AND A NUMBER 10 DAYS BEFORE WE GO TO ADOPT. AND SO THAT'S KIND OF WHY WE WERE, THAT WE PUSHED BACK A LITTLE BIT TO GIVE OURSELVES SOME WIGGLE ROOM. BUT WE DON'T, LIKE TONIGHT IS REALLY, SO ARE YOU SAYING, WOULD YOU LIKE TO SEE A RATE BETWEEN THOSE TWO? YES. 30 DAYS. 30 DAYS, THANK YOU. YEAH, 30 DAYS, WHICH IS MONDAY. MONDAY, FRIDAY OR MONDAY. YEAH. MONDAY OPTION TWO STILL LEAVES US $400,000 AN HOUR. YES SIR. THAT'S OPTION TWO WITH NO CAPITAL EXPENDITURES. OPTION ONE, I ASSUME WE JUST OPTION ONE IS 201,000, ROUGHLY 220. AND THOSE NUMBERS COULD INCREASE IF WE IMPROVE OUR SYSTEM, REVENUES COULD COME UP. YOU GET, YOU'VE GOT THREE FACTORS FACING YOU IN THE, IN THE GENERAL FUND BUDGET. YOU'VE GOT YOUR TAX VALUE RATE TO COLLECTION. SO I, IN AN IDEAL WORLD, WE'RE COLLECTING AT 9 78 AND NOT 9 49, WE DON'T KNOW WHETHER THAT'S GONNA HAPPEN OR NOT. WE GENERATE ADDITIONAL REVENUE THROUGH HEAVY TRASH, ENFORCING HEAVY TRASH PICKUP AND MAKING SURE THAT WE'RE ADEQUATELY COLLECTING FOR WHAT WE'RE ACTUALLY COLLECTING FROM THE COMMERCIAL SIDE. UH, AND THEN WE'VE ALWAYS DONE A GOOD JOB OF COST CONTAINMENT. WHEN WE ADOPTED THE BUDGET LAST YEAR, WE WERE LOOKING AT A 1.3 DRAW FROM RESERVES FOR MULTIPLE REASONS AND WE'RE ON PACE TO, TO FINISH THE YEAR RIGHT AT OR RIGHT, RIGHT AROUND ZERO. SO ONCE WE GET THE UPDATED NUMBERS, OKAY, SO WE'RE ASKING PEOPLE FOR $5 A WEEK MORE, UH, WE'RE LESS THAN THAT DOLLAR A DAY. WE'RE WE'RE ASKING THEM FOR, IF WE'RE GOING TO THE SECOND RATE, WE'RE GOING TO TWO 50 A WEEK, TWO 50 CENTS A WEEK, 25 A PICKUP, PROBABLY TAXES, WATER AND TRASH IS PROBABLY $5 A WEEK. YEAH, YEAH, YEAH. I'M SORRY, I WAS FOCUSED ON THE SOLID WASTE NUMBER SEEMS LIKE A SMALL PRICE TO PAY FOR THE SERVICE. I AGREE. THAT'S WHY YOU SAY IT THAT WAY INSTEAD OF SAYING IT'S A 45% INCREASE, [01:40:01] WELL THAT'S LIKE A 45% INCREASE. IT BLOWS YOUR MIND. RIGHT. BUT WHEN YOU SAY IT, BUT IT'S A DOLLAR 25 PER PICKUP BOARD. IT MAKES SOUND, BUT THAT'S KIND MY, THAT'S KIND OF LIKE MY WIFE SAYS WHEN IT'S ONLY $22 A MONTH, I SAID, YEP, YOU GOT NINE OTHER ONES. YES. WE CAN TALK TO DE SEND OF DIRECTION. IIII SEE WE DON'T HAVE A CHOICE ONE, OPTION TWO. OKAY, THAT'S JUST ME. BUT Y'ALL GOT YOUR OWN. THAT'S KIND OF WHERE I'M UP TO. I PREFER OPTION ONE, NOT THAT I WANT TO, ARE WE EVER ABLE TO CHANGE, UM, THESE NUMBERS LIKE MIDYEAR OR, OR IS THIS SOMETHING THAT HAS TO BE DONE ONLY, ONLY ONCE A YEAR? YEAH, SO, UH, YOU'RE, YOU'RE ALWAYS ABLE TO AMEND THE BUDGET MIDYEAR IN TERMS OF REDUCTION. BUT YOU HAVE TO HAVE, IF YOU'RE GOING TO INCREASE THAT NUMBER, YOU HAVE TO HAVE A REVENUE THAT COMES IN THAT'S GOING TO OFFSET SAID REVENUE. SO, UH, UNDER THE TRUTH AND TAXATION, BECAUSE OUR TAX IS TIED TO OUR BUDGET GENERATION, WE HAVE TO SAY THIS IS THE NUMBER WE'RE NOT, AND IT'S THE BOTTOM LINE. IT'S NOT THE INDIVIDUAL LINE ITEM. THIS IS THE NUMBER AND WE'RE GONNA TAX AGAINST IT TO GENERATE THIS AMOUNT OF REVENUE TO OFFSET THAT EXPENDITURE. SO THEY HAVE, WE HAVE TO PROVIDE THE, THE PUBLIC CLARITY ON WHAT WE INTEND TO COLLECT IN TERMS OF REVENUE AND THEN WHAT WE TURN INTEND TO EXTEND IN TERMS OF THAT, THAT AGAINST THAT COLLECTIVE REVENUE. BUT I THINK WHAT YOU'RE ASKING IS IF THE RATE COULD BE REDUCED DURING THE MIDDLE OF THE YEAR. I THINK IF YOU DO A RESOLUTION, YOU CAN CHANGE THE RATE. YOU CAN OKAY. YOU CAN CHANGE THE RATE ANYTIME YOU DECIDE TO CHANGE THE RATE. THAT'S WHAT YOU WERE ASKING. MM-HMM . , YEAH. NO, THAT WAS, YEAH. FROM A CUSTOMER CERTAINTY ASPECT, YOU WANNA BE ABLE TO SAY THIS IS WHAT, BECAUSE EVERYBODY HAS BUDGETS AT, AT THEIR, AT THEIR HOUSE AS WELL, RIGHT? YEAH. I JUST DIDN'T KNOW IF WE, IF THAT WAS EVER AN OPTION TO BE ABLE TO CHANGE SOMETHING EXTREME. IS IT A CHANGE? I THINK IT IS BETTER TO DO IT ONCE THOUGH. THREE PER YEAR. TWO. OKAY. SO WHERE WE AT? SO THIS IS STAFF'S UNDERSTANDING OF CONSENSUS. WE'RE GONNA DEVELOP NUMBERS AROUND OPTION TWO, NO CAPITAL EXPENDITURE, CURRENT SERVICE LEVEL PROVISION, AND THE GENERAL FUND AND GO WITH THAT. I THINK WE HAVE THREE ON THAT IDEA AND TWO ON THE OTHER. SO, OKAY. WELL, AGAIN, I'M GOING WITH WHAT, NOT A VOTE COUNT, BUT NO, I'M NOT EITHER. I'M JUST, YEAH, JUST A CONSENSUS DIRECTION AND, AND I WILL SAY HOPEFULLY, UH, TUESDAY, ANGEL'S ABLE TO ARM WRESTLE ALLIANT, UM, INTO THE, THE OTHER VARIABLE HERE IS OUR HEALTHCARE COVERAGE. UH, WE STILL HAVE A A 30% NUMBER BUILT IN. UM, WE'RE HOPING TO GET THAT DOWN, UH, WHICH WE WILL CHANGE THE BOTTOM LINE AS WELL, BECAUSE WHEN YOU HAVE A HUNDRED EMPLOYEES TIMES THAT 30%, WE SHOULD SEE SOME VARIABLE FLEX THERE AS WELL. DO A GOOD JOB. IMAGINE THAT YOU COMMERCIAL AND DEPLETED YOUR EMPLOYEE ACCOUNT. IF YOUR INSURANCE WOULD BILL UP. OH YEAH. NO, IT'S, IT'S, IT'S EXPENSIVE. AND THEN WE'RE HAVING TO LOOK AT A, WE'RE ACTUALLY, WELL, I, I'M NOT GONNA GET TOO FAR OFF INTO THE WEEDS, BUT WE HAVE A, A NEW VENDOR THAT IS BIDDING THE, THE HEALTH INSURANCE. THAT IS, I GUESS, HOW LONG HAVE THEY BEEN AROUND? THREE OR FOUR YEARS. THREE OR FOUR YEARS. SO WE DON'T KNOW WHAT THEY'RE REALLY ALL ABOUT, SO WE DON'T BILL, YOU PAID ANY CREDIT? YES. SO DO YOU NEED A MOTION NOM? JUST, JUST CLARITY. OKAY. OH, JUST A DISCUSSION. OH, GINGER. I'M SORRY TO MAKE IT 30 SOMETHING TWO PRETTY MUCH DONE WITH THAT. YES. A $3 DIFFERENCE. JOHN, THANK YOU FOR ALL THE NUMBERS AND ALL THE TIME THAT YOU SPENT TO BRING US ALL THIS GOOD NEWS, . SO WE'LL BE LOOKING, WE'LL BE LOOKING FOR THAT. OKAY. ANY OTHER QUESTIONS OR ITEMS ON THE WORKSHOP? NO, I'LL TRY NOT TO EMAIL Y'ALL AT MIDNIGHT TONIGHT, SO THANK YOU, JOHN. YEAH. THANK YOU JOHN. THANK YOU, COREY. THANK YOU. THANK YOU CJ. NEXT [VIII. NOTICE/ANNOUNCEMENT OF UPCOMING EVENTS AND MEETINGS] ITEM WILL BE NOTICE AND ANNOUNCEMENTS OF UPCOMING EVENTS AND MEETINGS. [01:45:01] WE HAVE A REGULAR COUNCIL MEETING THURSDAY, AUGUST 28TH. LABOR DAY OFFICES WILL BE LABOR DAY CITY OFFICES CLOSED MONDAY, SEPTEMBER THE FIRST PUBLIC HEARING AND TAX RATE ROLL CALL, VOTES TO ADOPT BUDGET, ORDINANCE, AND THEN TAX ORDINANCE. THAT'S STILL SEPTEMBER THE FOURTH. NO SIR. THAT'S MOVED TO THE 25TH. NO, NO. OH. YES, JUDGE. MOVE TO THE 25TH AT 6:30 PM SIX 20. SEPTEMBER THE 25TH AT 6 25. 6 6, 6 30. . THIS IS VERY REGULAR COUNCIL MEETING. SEPTEMBER THE 11TH, 2025 AT 7:00 PM AND A REGULAR COUNCIL MEETING. SEPTEMBER THE 25TH AT SIX 30 AS EXTRA MEETING NEXT WEEK, NEXT TUESDAY NIGHT AT SIX 30. WE WILL DO A VERY QUICK SPECIAL MEETING TO REISSUE OR REANNOUNCE THE HEARING AND ADOPTION DATE AS THE 25TH, NOT THE FOURTH. OKAY. SIX 30. SIX 30. YES. AND THAT'S ALL THAT'S GONNA BE ON THERE, RIGHT? THAT'S ALL IN CASE. SOME OF US CAN'T MAKE IT. YES SIR. YEAH, I'LL BE HERE. I'M JUST SAYING WE STILL, ANYBODY ELSE? CAN'T WE STILL, WE STILL NEED TO HAVE A QUORUM, BUT WE, IT'S JUST TO TAKE CARE OF RESET THE DATE. I DON'T KNOW IF HE HAD IT ON YOUR CALENDAR. AND THAT'S TUESDAY. THAT'S TUESDAY. I HAVE PREFER 19TH. I PROB I PROBABLY WILL NOT BE HERE. IT'S THE 19TH TUESDAY. 19TH TUESDAY, SEPTEMBER THE 19TH, MY DAUGHTER'S BIRTHDAY. SIX 30. THERE WILL BE A SPECIAL MEETING THEN THE NEXT ITEM WOULD BE ADJOURNMENT. SO MOVED. MOVED BY COUNCIL AND SECONDED BACK. SECOND COUNCIL. LAR. COUNCIL. COUNCIL PER AT THE SAME TIME. OH, THERE SIMULTANEOUSLY, UH, PENDING NO QUESTIONS OR COMMENTS? I WILL ENTERTAIN A VOTE. ALL IN FAVOR? AYE. AYE. MEETINGS ADJOURNED. AYE. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.