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I AM GONNA CALL TO ORDER THE REGULAR[Town Council Work Session on March 9, 2026.]
TOWN COUNCIL WORK SESSION FOR MONDAY, MARCH 9TH.WHY ALL OF A SUDDEN YOU JUST LEFT ME LIKE THAT.
I WENT, COULD YOU TELL? I WAS LIKE, NOPE.
CAN YOU DO THE ROLL CALL? I'M SORRY.
FIRST UP TONIGHT IS BRIGHT MOUNTAIN SOLAR AND POTOMAC ENERGY CENTER OF PURCHASE POWER AGREEMENTS FROM
I BELIEVE MR.
SO WE WERE LOOKING TO ENTER TWO PURCHASE POWER AGREEMENTS WITH AMP FOR SOME SOLAR AND SOME NATURAL GAS.
UH, WE'VE GOT MR. CRAIG KLEIN HEINZ WITH AMP.
UM, Y'ALL SEEN HIM BEFORE? I BELIEVE EVERYBODY HERE HAS, SO HE'S THE EXPERT.
AND ASK HIM ALL THE QUESTIONS YOU NEED.
SO, UM, I THINK LAST TIME I WAS HERE WE WERE TALKING ABOUT SOME DIFFERENT MARKET IMPACTS.
UM, ONE OF THE RESPONSES OF THAT IS THAT WE'RE CONTINUALLY OUT THERE LOOKING AT DIFFERENT OPPORTUNITIES, UH, TO FILL YOUR GUYS' POWER NEEDS.
AND THAT'S WHAT WE'RE HERE TO TALK ABOUT TONIGHT.
STARTING OFF, JUST AS A REMINDER, THERE'S THREE MAJOR TYPES OF CHARGES.
UM, WHEN WE ARE BUYING POWER AND INTERACTING WITH THE MARKET, THERE'S THREE DIFFERENT THINGS THAT WE HAVE TO KEEP IN MIND.
FIRST IS HOW MUCH ENERGY YOU'RE USING.
ENERGY'S A LITTLE BIT MORE STRAIGHTFORWARD.
THE MORE YOU USE MORE, WE HAVE TO GO OUT AND, AND, AND GET.
SO WHEN IT WAS REALLY COLD OUT IN JANUARY, WE HAD TO GO OUT AND GET MORE ENERGY.
UM, WHEN IT'S REALLY MILD ON A DAY LIKE TODAY, WE NEED LESS OF IT.
SO IT'S A VARIABLE COST AND THE VARIABLE THING WE HAVE TO EVALUATE.
THEN THE OTHER TWO BIG CHARGES ARE TRANSMISSION AND INSTALLED CAPACITY TRANSMISSION OF THE COST TO GO OUT AND BUILD THE HIGH VOLTAGE POWER LINES.
WHEN YOU'RE DRIVING AROUND THE STATE AND YOU SEE THOSE BIG TOWERS, YOU HAVE TO PAY FOR THAT.
AND THAT'S A COST THAT'S FIXED ON A MONTH TO MONTH BASIS.
THAT'S BEEN SOMETHING, A CHARGE HAS BEEN KIND OF CREEPING UP OVER TIME, BUT THAT'S MUCH HARDER FOR US TO HEDGE.
AND THEN FINALLY INSTALLED CAPACITY.
THIS IS A RELIABILITY CHARGE TO MAKE SURE THERE'S ENOUGH POWER PLANTS OUT THERE.
SO WHEN YOU THINK ON A REALLY, REALLY COLD DAY, ON A REALLY, REALLY HOT DAY, DO WE PHYSICALLY HAVE ENOUGH POWER PLANTS OUT THERE? AND THERE'S A SEPARATE CHARGE FOR THIS.
AND THAT'S SOMETHING THAT, THAT'S WHAT I WAS TALKING ABOUT LAST TIME I WAS HERE, IS THAT THIS INSTALLED CAPACITY COST WAS GOING UP.
THIS WAS DUE TO POWER PLANTS RETIRING.
UM, NOT A LOT OF POWER PLANTS GETTING BUILT AND INCREASING PRESSURE FROM NEW LOADS LIKE DATA CENTERS THAT WE'VE BEEN SEEING.
SO IN RESPONSE TO ENERGY PRICES AND INSTALLED CAPACITY PRICES, UH, WE WENT OUT AND WE, WE, WE KIND OF WERE CONTINUALLY LOOKING AT THE MARKET AND SEEING WHAT KIND OF DEALS ARE OUT THERE.
AND THIS IS YOUR 2027 ENERGY PORTFOLIO.
AND WE CALL IT A PORTFOLIO BECAUSE IT IS KIND OF LIKE A STOCK OR RETIREMENT PORTFOLIO.
WE DON'T WANNA SEE YOU'RE GETTING ALL OF YOUR POWER FROM ONE SOURCE.
IT'S LIKE IF YOU PUT ALL YOUR RETIREMENT IN ONE STOCK, PROBABLY NOT THE BEST IDEA.
'CAUSE IT COULD BE GOOD, IT COULD BE BAD, BUT IT'S VERY RISKY.
YOU LOOK, THERE'S A LOT OF DIFFERENT PIES, UH, PIECES TO THIS PIE DOWN HERE ON THE, ON THE FAR RIGHT WE HAVE HYDRO POWER.
THIS IS AMP, HYDRO, MELDON, AND GREENUP.
THESE ARE ALL HYDROELECTRIC FACILITIES THAT YOU GUYS ARE PART OWNERS OF.
BOTTOM RIGHT, WE HAVE A EFFECT.
THIS IS A NATURAL GAS PLANT IN NORTHWEST OHIO WHERE YOU ARE.
UM, PARTIAL, A PARTIAL OWNER OF PRAIRIE STATE IS A COAL PLANT IN SOUTHERN ILLINOIS.
THIS IS THE EXISTING SOLAR, UH, UH, CONTRACT YOU GUYS HAVE, INCLUDING THE UNITS THAT ARE LOCATED HERE IN FRONT ROYAL.
UM, RECENTLY I WAS HERE ALSO TALKING ABOUT BLUE CREEK WIND.
THIS IS A WIND PURCHASE AGREEMENT.
TALL GRASS, PPA, UM, THIS IS A, UM, WASTE HEAT OUT OF A NATURAL GAS PIPELINE.
SO, UM, THAT'S A RENEWABLE PIECE AS WELL.
THE GRAY IS WHERE WE'RE BUYING POWER FROM THE, SOME POWER FROM THE MARKET.
AND THEN THE IMPORTANT ONE HERE IS THIS YELLOW PIECE HERE.
YOU CAN SEE ABOUT 22% ON THE MARKET IN 2027.
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SO THAT'S WHERE WE DON'T HAVE ANYTHING LOCKED IN.SO WE'VE GOT ABOUT 80% LOCKED IN ABOUT 20% ON THE MARKET.
AND THAT'S ONE OF THE THINGS I'M HERE TO TALK ABOUT TONIGHT, IS TO CONTINUE TO LAYER SOME OF THAT IN.
SO THIS IS WHAT THIS LOOKS AT, LIKE OVER TIME, THE DIFFERENT COLORS HERE, THE SAME THAT WE WERE JUST TALKING ABOUT.
ON THE BOTTOM WE HAVE THE COAL PLANT, THE HYDROS IN BLUE, THE REDS THE NATURAL GAS PLANT.
WE HAVE THE BLUE CREEK WIND, PPA, THIS IS A WIND DEAL THAT GOES THROUGH 2029.
WHEN WE GET OUT TOWARDS THE END OF THIS DECADE, THERE'S A GOOD CHANCE THAT WE'LL LOOK AT EXTENDING THAT DEAL.
WE'LL GO OUT TO THAT COUNTER PARTY AND TALK ABOUT, UM, PROBABLY EXTENSION, BUT THAT WON'T BE FOR A WHILE YET.
WE HAVE THE TALL GRASS, YOU CAN SEE THAT STARTS IN 2027.
AND THEN WE HAVE SOME BLOCKS IN HERE OF PURCHASES THAT WE'RE, WE'VE DONE SO FOR THESE COUPLE OF YEARS, 27, 28.
BUT YOU CAN SEE ONCE THOSE BLOCKS WILL ALLOW, ESPECIALLY IN 29.
UM, AND KIND OF GOING FORWARD, WE, YOU KNOW, WE GET TO THE POINT WHERE'RE ABOUT, UH, 25% ON THE MARKET, 25, 30% ON THE MARKET.
SO THAT'S WHERE WE'RE COMING TO YOU AND RECOMMENDING THESE TWO PPAS TONIGHT.
AND THIS IS WHAT YOUR POSITION WOULD LOOK LIKE WITH THESE TWO PPAS.
SO YOU CAN SEE WE'RE NOT FILLING EVERYTHING.
UM, THE YELLOW WOULD BE THE ADDITIONAL SOLAR PPA WE'LL TALK ABOUT.
AND THEN THE WHITE AND BLACK CHECKERED WOULD BE THE COMBINED CYCLE POWER PLANT, PPA THAT WE'LL BE DISCUSSING TONIGHT.
SO YOU SEE, UM, YOU KNOW, WITH THAT REALLY KIND OF TAKES CARE OF A FAIR, A FAIR AMOUNT OF OUR NEEDS TO THE END OF THE DECADE.
AND THEN GOING FORWARD IN 23, UM, TAKES CARE OF A GOOD BIT OF IT.
BUT ESPECIALLY IF YOU CONSIDER THAT WE, IF WE RE-UPPED THIS WIND DEAL OUT IN THE 2030S, THAT WOULD REALLY KIND OF PUT US IN A PRETTY, UH, SOLID PLACE WHERE WE'D BE CLOSER TO TO, YOU KNOW, 85, 90% HEDGE, WHICH IS A, IS A NUMBER WE TYPICALLY RECOMMEND.
UM, SO WHEN WE LOOK AT THIS, I'LL TALK BOTH ABOUT, IN BOTH INDIVIDUAL PROJECTS, BUT I KIND OF WANTED TO FIRST TAKE A LOOK AT YOUR OVERALL POSITION AND WHAT THAT LOOKS LIKE WITH THESE PPAS IN IT.
SO WE LOOKED AT IT, YOU KNOW, ON A PIE CHART FOR ONE YEAR.
THIS IS LOOKING AT IT LONG TERM.
I DID WANT TO KIND OF ZOOM IN REAL QUICK AND TAKE A LOOK AT WHAT THIS LOOKS.
I'M GONNA DO THAT ON THE NEXT SLIDE.
UM, SO WHAT WE'RE TALKING ABOUT WITH THESE TWO, UH, DEALS, THESE ARE POWER PURCHASE AGREEMENTS.
UM, SO WHEN WE LOOK AT THE PRAIRIE STATE, THE COAL PLANT, THE HYDROS, YOUR EXISTING NATURAL GAS PLANT, YOU GUYS OWN THOSE PLANTS THROUGH AMP.
THAT MEANS ALL OF THE GOOD, ALL OF THE BAD, YOU GUYS MAKE ALL OF THE DECISIONS.
WHEN WE MAKE A BIG DECISION ON THE PLANT, WE GATHER ALL THE COMMUNITIES THAT ARE PARTICIPATING IN THAT PROJECT.
WE MAKE THE DECISION WHEN THERE'S COST THAT GOES TO ALL OF THE DIFFERENT OWNERS.
THIS IS A LITTLE BIT DIFFERENT.
THIS IS A POWER PURCHASE AGREEMENT.
NOW WE ALREADY HAVE SOME OF THESE.
THIS IS LIKE THE BLUE CREEK WIND DEAL, THE TALL GRASS.
SO WE DON'T OWN THE FACILITY, SOMEBODY ELSE DOES.
WE ARE AGREEING JUST TO BUY THE POWER AND WE'RE AGREEING TO DO THAT AT A FIXED PRICE.
NOW, THERE'S SOME PROS AND CONS HERE.
ONE BIG PRO IS THAT WE DON'T HAVE, WE, WE KNOW EXACTLY WHAT WE'RE GONNA PAY.
WE'RE GONNA PAY THAT FIXED PRICE.
AND IF THERE'S MAINTENANCE PROBLEMS, THAT'S NOT OUR ISSUE.
IF THERE'S ENVIRONMENT, YOU KNOW, IF THERE'S DECOMMISSIONING ANYTHING LIKE THAT, THAT YOU KNOW, UM, IF THERE'S EXTRA COST AS THEY'RE BUILDING IT, THAT'S NOT OURS, THAT IS ON THE OWNER BECAUSE WE'VE AGREED TO BUY AT A FIXED PRICE.
THAT ALSO MEANS AT THE END OF THE TERM, WHEN WE GET OUT TO, YOU KNOW, THE END DATE OF THE CONTRACT, THAT THEY STILL OWN THE POWER PLANT.
WE, YOU KNOW, WHEN WE HIT 2052 WITH THE WIND, THE SOLAR DEAL THAT CONTRACT'S OVER, WE WOULD HAVE TO GO OUT AND FIND SOMETHING ELSE WHERE WITH THOSE HYDRO PLANTS, YOU KNOW, THOSE HYDRO PLANTS SHOULD BE AROUND A HUNDRED, 150 YEARS THAT WE WERE LOOKING AT BEFOREHAND.
YOU KNOW, THOSE SHOULD BE REALLY LONG TERM ASSETS FOR YOU GUYS.
NOW, WHY DO WE, ARE WE NOT BUILDING, UM, SOME OF THIS OURSELVES? UM, ONE, IT'S HARD TO BUILD A COMBINED CYCLE PLANT.
AND SO THAT'S ONE OF THE REASONS WE'VE TEAMED UP WITH, WITH THE, UH, POTOMAC ENERGY CENTER, A BRIGHT MOUNTAIN.
UM, IT'S BECAUSE WE'RE NEEDING TO MOVE QUICKLY BECAUSE OF THE TAX CHANGES, UM, WITH THE NEW TAX, THE NEW TAX LEGISLATION, SO ON THIS PROJECT IS CLOSE TO BEING ABLE TO COME ONLINE TO TAKE ADVANTAGE OF ALL THE TAX CREDITS THAT WERE IN PLACE UNDER THE PREVIOUS ADMINISTRATION.
AND SO IT MAKES SENSE TO TEAM UP WITH THEM.
OKAY, SO THESE TWO DEALS, THE FIRST IS A SOLAR CONTRACT THAT THIS WOULD BE A NEW BUILD SOLAR FACILITY.
NOW KEEP IN MIND YOU GUYS AREN'T RESPONSIBLE, WE AREN'T RESPONSIBLE FOR BUILDING IT.
WE'RE JUST GONNA BUY THE POWER.
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TO COME ONLINE IN 2028 AND IT WOULD BE A 25 YEAR CONTRACT AND GO THROUGH 2052.HOWEVER, IT'S NOT MUCH OF YOUR ENERGY SUPPLY.
YOU CAN SEE THIS IS ONLY 3% OF YOUR ENERGY NEEDS.
SO IT GOES BACK TO THAT DIVERSIFICATION.
THIS IS NOT LAYERING IN ANOTHER BIG, BIG CHUNK.
THIS IS JUST LAYERING IN ANOTHER, ANOTHER SMALL SLIVER, 3% OF YOUR OVERALL ENERGY NEEDS AND THE OVERALL EFFECTIVE RATE FOR THAT CONTRACT.
WE'LL GO INTO THAT A LITTLE BIT MORE DETAIL, BUT IT'S ABOUT FOUR AND A HALF TO 5 CENTS A KILOWATT HOUR.
I'VE GOT DOLLARS AND MEG PER MEGAWATT HOUR.
UM, I KNOW YOU GUYS DEAL A LOT AND CENTS PER KILOWATT HOUR, SO I'LL TRY TO SAY THING IN CENTS PER KILOWATT HOUR.
THE OTHER ONE IS THE POTOMAC COMBINED CYCLE.
THIS IS JUST UP THE ROAD HERE.
WE'LL TALK MORE ABOUT MORE THIS ONE, UM, A LITTLE BIT MORE.
BUT THIS, ONCE AGAIN, THIS WOULD BE 10% OF YOUR ENERGY SUPPLY.
SO ONCE AGAIN, WE GO BACK TO THAT 25%.
WE'RE JUST KIND OF TAKING LITTLE BITES OF THE APPLE OFF OF THAT.
UM, TO LAYER IN ADDITIONAL OPTIONS.
UM, WE'RE LOOKING AT THE EFFECTIVE RATE OF THIS ON BETWEEN FIVE TO 6 CENTS A KILOWATT HOUR.
AND THE NICE THING ABOUT THIS ONE, IT HELPS TO HEDGE BOTH ENERGY AND CAPACITY ON THE POTOMAC.
SO YOU REMEMBER HOW I WAS TALKING ABOUT LAST TIME I WAS HERE ABOUT CAPACITY PRICES WERE GOING UP BECAUSE OF ALL THAT SCARCITY.
POTOMAC HELPS TO HEDGE NOT JUST THE ENERGY SIDE, BUT ALSO OUR CAPACITY SIDE.
UM, LASTLY ON THE POSITION SIDE, THIS IS LOOKING AT YOUR HOURLY LOAD FOR AN ENTIRE YEAR AND JUST KIND OF, AND ONE OF THE THINGS YOU NOTICE, IT'S HIGHER HERE IN THE WINTER TIME, HIGHER IN THE SUMMER, LOWER IN THE SPRING AND THE FALL.
ONE OF THE THINGS WE LOOK AT AND EVALUATED AND WE LOOKED AT WHEN WE WERE MAKING THIS RECOMMENDATION TO YOU GUYS.
SO WE DON'T WANT YOU GUYS TO HAVE TOO MUCH POWER, RIGHT? WE DON'T WANNA HAVE BE BUYING TOO MUCH FROM THE MARKET, BUT WE ALSO DON'T WANT TO HAVE TOO MUCH WHERE WE'RE SELLING BACK.
AND YOU CAN SEE THESE LINES HERE, THE YELLOW, THAT'S YOUR BASE LOAD RESOURCES LIKE PRAIRIE STATE AND THE HYDROS.
THE WHITE IS WITH TALL GRASS, THE RED IS WITH THE NATURAL GAS PLANT.
AND THEN THAT YELLOW IS WITH THE SOLAR.
AND SO THIS IS WHAT YOUR NEW, THAT YELLOW IS ABOUT HOW MUCH POWER PLANTS THAT YOU GUYS WOULD HAVE TO COVER YOUR LOAD.
AND SO YOU CAN SEE, YOU KNOW, THERE'S SOMETIMES WHERE WE'RE SHORT, THERE'S SOMETIMES WHERE WE'RE, WE'RE, WE'RE, WE'RE, UM, BUYING, BUT IT KIND OF BALANCES OUT.
AND THE THING THAT WE KIND OF WATCH IS THESE SHOULDER MONTHS THAT WE'RE NOT SELLING TOO MUCH POWER.
AND WITH THIS PARTICULAR PORTFOLIO, IT KIND OF BALANCES OUT.
SO YOU, YOU GO BACK TO THAT PIE CHART AND YOU SAY, OKAY, IF WE'RE 25% ON THE MARKET AND WE'RE LOOKING AT LOCKING IN 13%, WHAT ABOUT THAT LAST 12 OR 13%? WELL, THAT'S MOSTLY IN THE SUMMER AND THE WINTERTIME WHERE WE WANT TO BUY BLOCKS OR POWER JUST FOR THE SUMMER OR JUST FOR THE WINTER.
'CAUSE WE DON'T NEED THAT POWER ALL YEAR LONG.
THAT'S WHY, THAT'S WHY WE AREN'T RECOMMENDING MORE.
THAT'S WHY WE AREN'T RECOMMENDING YOU GUYS GETTING INTO POTOMAC.
YOU KNOW, THE SOLAR FACILITY FOR LIKE 25% OF YOUR NEEDS IS BECAUSE WE WANT TO BALANCE THE RIGHT TYPE OF PRODUCT WITH WHAT YOU NEED.
AND WE DON'T WANT YOU SELLING POWER HERE, UM, IN THE SHOULDER MONTHS.
AND THAT'S 2024, RIGHT? THIS IS A YEAR 2024 LOAD.
IT'S, IT IS AN PROXY FOR, FOR FUTURE YEARS.
JUST KIND OF STACKING EVERYTHING UP IN THERE.
I DIDN'T HAVE THE NUMBERS YET TO PULL FOR 25.
SO, SO YOU HAD MENTIONED LAST TIME, UH, ABOUT, AND YOU ALLUDED TO IT AGAIN THIS EVENING, UH, ABOUT LIKE 10% OR SO WAS LIKE A TARGET NUMBER FOR BEING ON MARKET.
IS IS, SO THAT'S STILL THE, THE TARGET FOR PERCENT? YEAH, I WOULD SAY.
AND WHAT WE'LL WE'RE LOOKING AT, UM, IS FOR THAT 10%, WE DON'T WANT TO TYPICALLY BUY LONG TERM ASSETS, BUT WE STILL WOULD LOOK AT DOING SOME, SOME MONTHLY DEALS WHERE WE BUY SOME FOR THE SUMMER IN THE WINTER AND MAYBE GET THAT DOWN CLOSER TO THE 5% OR SOMETHING LIKE THAT.
UM, WITH, WITH SHORT TERM DEALS, BUT YEAH.
THANK, OKAY, SO I'LL WANT QUESTIONS BEFORE HE MOVES ON.
GOING BACK TO THE PREVIOUS SLIDE, RIGHT? MOUNTAIN AND POTOMAC, YOU SAID RIGHT UP THE ROAD.
SO DOES THIS MEAN WE COULD SEE, UH, REDUCTION IN IT, UH, TRANSMISSION CALLS? UM, OR IS IT NOT ENOUGH? SO IT WOULD, BECAUSE YOU GUYS ARE SO CLOSE TO POTOMAC, THE TRANSPORTATION, THE RISK AND TRANSPORTATION COST IS VERY LOW.
UM, AND, AND TO GIVE YOU SOME CLARITY HERE, WE'RE RECOMMENDING THIS TO A GOOD BIT OF OUR MEMBERS, INCLUDING ONES ALL THE WAY OUT IN OHIO.
I'M HAVING TO SHOW A CHART OF LIKE THE COST OF MOVING POWER FROM VIRGINIA OUT TO OHIO.
UM, JUST LIKE I, YOU KNOW, YOU GUYS ARE DOING THE OPPOSITE, RIGHT? GOING FROM OHIO TO TO, UM, BUT FOR YOU GUYS, I DIDN'T PUT THE CHART IN BECAUSE IT'S JUST UP THE ROAD.
UM, WE STILL HAVE TO PAY THAT TRANSMISSION, THAT BASE TRANSMISSION RATE,
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BUT THE TRANSPORTATION COST, THERE'S A VARIABLE TRANSPORTATION COST AND THAT SHOULD BE PRETTY MINIMAL FOR THIS FACILITY FOR YOU GUYS.SO THE 13% IS REALLY HEDGING THE, THE PEAK, THE PEAK TIMES THAT, YOU KNOW, LIKE, UH, SAY NOVEMBER THROUGH FEBRUARY AND THE HOT SUMMER, OKAY, JUNE THROUGH SEPTEMBER, UH, USUALLY IT'S DECEMBER THROUGH MARCH IS THE MONTHS THAT WE LOOK AT TO, TO LAYERING IN SOME ADDITIONAL RIGHT.
BUT THAT ONCE AGAIN IS A BALANCE.
'CAUSE WE DON'T WANNA BUY TOO MUCH AND BE SELLING.
SO YOU LOOK AT, I MEAN, EVEN IN JANUARY, UM, JANUARY IS VERY COLD.
IN THE END WE NEEDED, WE NEEDED EXTRA POWER, BUT THE FRONT END WAS VERY MILD.
WE HAD ALMOST SOME 60 DEGREE DAYS THERE.
SO IF YOU WERE TO BUY POWER FOR JANUARY, WELL YOU MIGHT NOT HAVE NEEDED IT IN THE FRONT PART OF THE MONTH AND YOU WERE SELLING IT BACK, BUT YOU NEEDED IT IN THE BACK END.
SO IT'S ONE OF THOSE YOU KIND OF WANNA, YOU HAVE TO BALANCE IT OUT.
WE TYPICALLY PLAN FOR AVERAGE WEATHER, WEATHER.
IF YOU'RE SELLING IT BACK, YOU COULD TAKE A HIT, CORRECT.
BUT THEN ON THE BACK PART OF THE MONTH, YOU'RE BUYING IT AND IT'S EXPENSIVE.
SO I'LL WALK THROUGH THE, I I HAVEN'T REALLY TALKED TOO MUCH ABOUT RATES.
I WILL STEP KIND OF THROUGH THE RATE, UM, ASSUMPTIONS HERE FOR BOTH OF THESE FACILITIES.
UM, STARTING OFF WITH THE SOLAR FACILITY, UM, THIS IS LOCATED IN EASTERN TEXAS.
THE, THE COMPANY THAT WILL BE OWNING IT, THAT WILL BE PURCHASING FROM IS AVEN GRID.
UM, THIS IS A COMPANY THAT WE'VE HAD A LOT OF HISTORY WITH.
THEY OWN BLUE CREEK WIND AND WE'VE BEEN BUYING POWER FROM THE BLUE CREEK WIND FARM, WHICH IS IN OHIO SINCE I BELIEVE IT WAS 2012.
SO, UM, YOU GUYS ARE ALREADY BUYING POWER FROM THIS COMPANY, JUST FROM A WIND PROJECT.
SO THIS IS A COMPANY WE HAVE EXPERIENCE WITH AND WE FEEL PRETTY COMFORTABLE WITH.
UM, AND IT IS, LIKE I SAID, PROJECTED TO COME ONLINE, UM, AT THE BEGINNING OF 2028.
UH, THE COSTS AND THE TERMS. SO, UH, KIND OF WALKING DOWN THE KEY NUMBERS HERE, 25 YEAR DEAL AND INCLUDES ENERGY, CAPACITY AND RECS.
THE BIG THING HERE IS ENERGY AND RECS.
IT DOESN'T REALLY, WIND IS NOT VERY RELIABLE DURING THOSE REALLY COLD AND REALLY HOT DAYS.
SO IT'S NOT HELPING TO HEDGE AS MUCH AS SOME OF THE OTHER TOP POWER PLANT TYPES.
IT PROVIDES A LITTLE BIT OF CAPACITY HEDGE, BUT NOT MUCH.
AND I'LL RECS ARE RENEWABLE ENERGY CREDITS.
THIS IS THE BRIGHT TO CALL THE POWER GREEN WITH YOUR RENEWABLES.
YOU GUYS ARE NOT SUBJECT TO A RENEWABLE STANDARD.
SO WE SELL THOSE OFF ON YOUR BEHALF AND THAT HELPS TO LOWER YOUR BREAK.
WE ALREADY DO THIS WITH LIKE BLUE CREEK WIND FARM AND THE HYDROS.
SO WE STARTED WITH A BASE RATE OF $73 A MEGAWATT HOUR, 7.30 CENTS.
THE ANTICIPATED REVENUE FROM, UM, THE CAPACITY, UM, IS ABOUT A 0.40 CENTS A KILOWATT HOUR.
SELLING THE, THE RECS INTO THE VIRGINIA REC MARKET IS WORTH ABOUT 2.40 CENTS A KILOWATT HOUR.
SO WHEN YOU FACTOR IN THOSE CREDITS WE'RE LEFT WITH ENERGY, THAT COSTS ABOUT FOUR AND A HALF CENTS A KILOWATT HOUR.
NOW NOT ALL OF THESE ARE KNOWN.
UM, CAPACITY PRICES HAVE BEEN LOWER THAN THIS, BUT THEY'RE ALSO TALKED ABOUT GOING MUCH HIGHER THAN THIS.
SO WE COULD SEE MORE, UM, RENT PRICES.
THIS IS SUBJECT TO WHAT END, WHAT ENDS UP HAPPENING WITH THE VIRGINIA RENEWABLE MARKET.
UM, YOU KNOW, A COUPLE YEARS AGO IT WAS UP CLOSE TO $35 OR THREE AND A HALF CENTS.
RIGHT NOW IT'S ABOUT 2.40 CENTS A KILOWATT HOUR.
UM, BUT IT'S KIND OF BEEN AT THAT LEVEL FOR A WHILE.
UM, COMPARE THAT TO THE MARKET.
THAT'S FOUR AND A HALF CENTS ON THE MARKET RIGHT NOW.
FOR THIS EQUIVALENT POWER WOULD BE ABOUT 6 CENTS.
SO IF WE WERE OUT TO GO OUT AND BUY THE POWER FROM THE MARKET, UH, FOR THE SAME PERIOD, WE'D BE LOOKING AT HAVING TO PAY ABOUT 6 CENTS.
SO EVEN IF THE REC REVENUE GOES DOWN, WE STILL HAVE PLENTY OF ROOM WHERE THIS LOOKS CHEAPER THAN THE MARKET.
UM, NOW THIS IS THE PRICE FOR THE FIRST FIVE YEARS.
THE SECOND FIVE YEARS, THE PRICE GOES UP $5 A MEGAWATT HOUR, WHICH IS HALF A CENT A KILOWATT HOUR.
AND I KIND OF GIVE THIS ON A DIFFERENT WAY OF LOOKING AT IT.
UM, THIS RED LINE IS IF WE WERE BUYING FROM THE MARKET, WHAT OUR CURRENT PROJECTION, THE FORWARD MARKETS AND PROJECTIONS ARE, THE BLUE LINE IS WHAT WE'RE ANTICIPATING, UM, WITH THE CREDITS THAT THE CONTRACT WOULD, WOULD COME IN SO WELL BELOW.
WE DON'T KNOW WHAT THESE REC REVENUES WOULD BE.
UM, BUT ONCE AGAIN, THIS IS ONLY 3% OF YOUR OVERALL ENERGY PORTFOLIO.
SO THIS IS NOT A, NOT A BIG CHUNK.
SO, UM, BUT IT DOES HELP TO LAYER IN SOME, SOME POWER ALL THE WAY OUT THROUGH 2052.
QUESTIONS ON BRIGHT MOUNTAIN BEFORE
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I GO TO POTOMAC, I WAS JUST WONDERING ABOUT HOW, HOW, HOW CAN YOU PREDICT THE EXPONENTIAL INCREASE OVER TIME? UH, WE, WE LOOK AT MARKET PROJECTIONS FROM THE INDUSTRY FOLKS.UM, I WOULD SAY, YOU KNOW, THE FIRST FIVE YEARS OF THIS CURVE ARE PRETTY WELL KNOWN.
PEOPLE ARE OUT THERE BUYING AND SELLING THE NEXT FIVE YEARS.
YEAR 10 FORWARD IS, IS AN ESTIMATE.
UM, THERE'S A LOT OF DIFFERENT, THIS IS ONE OF THE ESTIMATES, UM, BASED OF S AND P, WHICH IS A MAJOR COMPANY IN INDUSTRY.
UM, WHEN I LOOKED AT OTHER FORECASTS, THEY'RE IN ABOUT THE SAME RAT RANGE, BUT IT'S MAKING A BUNCH OF ASSUMPTIONS.
IT COULD BE HIGH OR IT COULD BE LOWER
SO THIS ONE'S ONLY 3% OF YOUR ENERGY.
THE NEXT ONE IS A LITTLE BIT MORE, UM, UH, OVER YOUR OVERALL PORTFOLIO, THERE WOULD BE 10%.
THIS IS THE POTOMAC ENERGY CENTER CENTER, UM, LOCATED, UM, JUST, UH, ON THE OUTSKIRTS OF WASHINGTON DC IT'S A COMBINED CYCLE POWER PLANT.
AND THIS IS THE SAME AS YOUR FREMONT AFA.
YOU KNOW THAT, THAT, THAT RED PIECE I SHOWED YOU IN THE BEGINNING, THAT YOU GUYS ARE PART OWNERS OF WHAT A NATURAL GAS COMBINED CYCLE POWER PLAN IS.
BASICALLY, THINK OF A GIANT AIRCRAFT ENGINE, BUT INSTEAD OF FLYING AN AIRPLANE, IT TURNS A GENERATOR TO GENERATE ELECTRICITY.
THEN YOU TAKE THE HEAT COMING OUT OF THE BACK OF THAT AIRCRAFT ENGINE AND YOU USE THAT TO BOIL WATER TO CREATE STEAM THAT TURNS A STEAM TURBINE TO GENERATE ELECTRICITY.
SO IT'S TAKING ADVANTAGE OF MECHANICAL AND THE THERMAL.
THAT'S WHY YOU'LL HEAR IT CALLED A COMBINED CYCLE POWER PLANT.
BASICALLY, IT'S A WAY TO, TO UTILIZE THE, THE NATURAL GAS MOST EFFICIENTLY FROM BOTH THE MECHANICAL AND THE THERMAL CYCLE.
UM, SO WE PUT NATURAL GAS IN, WE GET POWER OUT.
UM, THE SOLAR, WE PUT SUN IN, WHICH IS FREE, AND WE GET ENERGY OUT.
THIS ONE WE HAVE TO BUY NATURAL GAS FOR.
SO THAT'S SOMETHING THAT WE HAVE TO CONSIDER WHEN WE'RE EVALUATING THIS FACILITY IS THAT WE'RE ALSO GONNA HAVE TO BUY THE NATURAL GAS.
THE OWNER OF THIS FACILITY OWNS A FAIR AMOUNT OF OTHER FACILITIES.
UM, SO THIS IS JUST ONE OF THEIRS.
UM, IT'S UH, IT'S PRETTY SIMILAR, UM, TO FREMONT IN A LOT OF WAYS.
IT DOESN'T HAVE QUITE AS MUCH DUCT BURNERS, WHICH IS BASICALLY KIND OF LIKE AFTERBURNERS, UH, WHERE YOU GET SOME EXTRA POWER.
UM, THE PLANT CAME ONLINE IN 2017, SO THIS IS NOT, THIS IS A NEWER FACILITY, BUT IT'S NOT BRAND NEW.
SO IT'S NOT LIKE THERE'S A LOT OF RISK THERE WITH CONSTRUCTION THAT, YOU KNOW, ALL IT COULD GET DELAYED OR SOMETHING LIKE THAT.
AND, UM, YEAH, IT'S VERY CLOSE TO HERE.
SO, UH, NEAR LEESBURG, VIRGINIA, AND THIS CONTRACT WOULD START THIS JUNE.
SO THIS ONE WOULD COME ONLINE.
UM, 'CAUSE THIS IS AN EXISTING POWER PLANT.
SO THIS ONE WOULD COME ONLINE, UH, WHICH RIGHT IN TIME FOR THE SUMMERTIME, WHICH IS ACTUALLY NOT A BAD THING.
THIS HELPS, HELPS, WOULD HELP PROVIDE SOME MORE SUMMER POWER.
THIS CONTRACT IS NOT AS LONG, UM, 'CAUSE IT'S AN EXISTING PLANT.
WHEN WE LOOK, THERE'S SEVERAL DIFFERENT COMPONENTS HERE.
SO WE HAVE MORE, UM, DIFFERENT LINE ITEMS 'CAUSE WE HAVE MORE THINGS THAT ARE GOING ON.
FIRST OF ALL, THERE'S A FIXED CHARGE THAT WE HAVE TO PAY THEM THAT EQUATES TO ABOUT 3.60 CENTS A KILOWATT HOUR.
AND THAT CHARGE HAS AN ESCALATOR.
UM, AND IT HAS A TWO OR TWO AND A HALF PERCENT ESCALATOR.
THERE'S THE FIRM GAS TRANSPORTATION.
SO NOW WE GET INTO, WE HAVE TO BUY THE FUEL, BUT WHEN WE BUY THE FUEL, WE HAVE TO MOVE IT THROUGH THE PIPELINE.
THERE'S A COST ASSOCIATED WITH THAT.
WE'RE ANTICIPATING THAT TO BE ABOUT A HALF A CENT, A KILOWATT HOUR.
THERE'S A FIXED MAINTENANCE CHARGE, UM, THAT'S ABOUT 0.30 CENTS A KILOWATT HOUR.
UM, SO THIS ONE'S FIXED, THIS ONE'S NOT.
THIS FUEL COST IS ESTIMATED TO BE $21 A MEGAWATT HOUR OR 2 CENTS A KILOWATT HOUR.
UM, SO THAT'S, THAT'S A VARIABLE COST BASED ON, UM, WHETHER THE MARKET ENDS UP.
AND THEN THE CAPACITY VALUE, THIS IS A BIG THING FROM THIS POWER PLANT THAT HELPS TO OFFSET OUR CAPACITY COSTS.
AND THAT, SO YOU CAN SEE WHERE QUITE A BIT 1.50 CENTS A KILOWATT HOUR.
SO WE BOIL ALL THAT DOWN TO, WELL, WHAT WOULD BE EQUIVALENT ENERGY OUT OF THE PLANT B.
AND WE'D BE LOOKING AT ABOUT A 5 CENT A KILOWATT HOUR POUND COMING OUT THE FACILITY.
WE STILL HAVE TO GO OUT AND BUY THE GAS.
OKAY? SO THAT CAN GO UP AND DOWN.
UM, BUT YOU CAN SEE COMPARED TO THE MARKET IN 2027, WHICH IS AT FIVE AND A HALF CENTS, THIS IS PROJECT TO BE SLIGHTLY CHEAPER THAN THE MARKET.
[00:25:01]
ABOUT THE GAS COSTS ARE NOT LOCKED IN, WE, WE PLAN ON DOING THE SAME THING WE DO WITH FREMONT AND HAVING GAS HEDGING POLICY SO THAT WE AREN'T JUST BUYING IT FROM THE MARKET WHERE WE LAYER HEDGES IN, UM, TO HELP PROTECT OURSELVES FROM THOSE NATURAL GAS PRICES GOING UP NOW.UM, SO WE WOULD BE DOING HEDGING TO HELP LOCK THIS IN ONCE WE, UH, MOVE FORWARD WITH THIS CONTRACT.
AND I HAVE THE SA UH, THAT WAS YEAR ONE.
THIS IS JUST LOOKING AT ALL FIVE, UH, ALL 15 YEARS.
UM, WE GET TO THE SAME PLACE YOU CAN SEE INSTEAD OF FIVE AND A HALF, UH, SINCE WE'RE UP TO, TO 6 CENTS.
BUT THAT'S A LITTLE BIT CHEAPER THAN THE MARKET, WHICH IS SUPPOSED TO BE ABOUT 6.1, 6.20 CENTS.
UM, BUT THIS IS JUST LOOKING, THE BIG THING THAT CHANGED HERE IS, UM, THE DEMAND COST WITH THAT ESCALATOR IS A LITTLE, IS WHAT IS THE PRIMARY DRIVER THERE.
BUT LOOKING AT THIS, THIS IS A LITTLE BIT EASIER TO SEE
UM, SO THE RED PRICE IS THE EQUIVALENT PRICE.
IF WE WERE TO GO OUT ONTO THE MARKET PURCHASE, THIS POWER, THE BLUE PRICE IS WHAT WE ANTICIPATE THE COST OF THIS POWER PLANT TO BE, UM, WITH THE CONTRACT.
SO YOU CAN SEE A LITTLE BIT OF A GAP.
YOU KNOW, THE, THE, THE, THE SOLAR, WE HAD A BIGGER GAP THERE.
UM, THAT'S BECAUSE OF THE RENEWABLE ENERGY CREDITS.
UM, THAT REALLY MAKES, MAKES IT LOOK NICE.
UM, BUT THE SOLAR, IT'S NOT HELPING TO PROVIDE US WITH CAPACITY.
IT'S ALSO NOT AS RELIABLE WHERE THIS IS A MUCH MORE RELIABLE HELPING TO PROVIDE CAPACITY.
SO YOU CAN SEE THIS ONE, THERE'S NOT AS BIG OF A PREMIUM OF LIKE, OH, WE'RE GONNA REALLY BEAT THE MARKET HERE.
THIS IS MORE ABOUT TRYING TO LOCK IN THOSE COSTS FOR THE NEXT 15 YEARS AND NOT HAVE THAT FLUCTUATING ON A MONTHLY BASIS UP AND DOWN.
SO THIS, THIS PLANT IS MORE ABOUT BRINGING US MORE CERTAINTY.
ONE LAST THING I DO WANNA MENTION ABOUT THIS PLANT IS THAT IN THE STATE OF VIRGINIA, THERE IS SOMETHING CALLED REGGIE, WHICH IS THE REGIONAL GREENHOUSE GAS INITIATIVE.
THE STATE OF VIRGINIA WAS IN THIS MARKET FOR A WHILE WHERE IT WAS TAXING ALL OF THE POWER PLANTS IN VIRGINIA.
UM, AND IT EQUATES TO ABOUT $9 A MEGAWATT HOUR 0.90 CENTS, A KILOWATT HOUR, SAY VIRGINIA GOT OUT AND IS CURRENTLY NOT IN REGGIE.
UM, BUT THE STATE IS, I KEEP SAYING STATE IS COMMONWEALTH APOLOGIZE.
UM, BUT VIRGINIA IS TALKING ABOUT GOING BACK INTO REGGIE.
IF THAT HAPPENS, WE COULD SEE AN ADDITIONAL 0.90 CENTS A KILOWATT HOUR POSSIBLE FROM THIS MARKET.
HOWEVER, WHEN WE RAN THE, WHEN WE RAN A STUDY AND WE LOOKED AT IT, ALL POWER PRICES GO UP BY ABOUT THAT IN THE STATE OF VIRGINIA.
SO IT, YOU KNOW, YEAH, THIS CONTRACT WOULD GET MORE EXPENSIVE, BUT THE EQUIVALENT MARKET POWER WOULD ALSO MOST LIKELY GET MORE EXPENSIVE AS EVERYBODY SEES THOSE HIGHER COSTS IN THE STATE.
SO, UM, BUT I DID WANT TO POINT THAT OUT, THAT, THAT, THAT IS, THIS WAS NOT, UM, IN THE NUMBERS THAT YOU JUST SAW AND REGGIE WOULD GET REENACTED BY, UM, FUTURE, UH, UH, STATE OFFICIALS THEN THAT WE COULD SEE THAT COST QUESTIONS.
THAT'S MY, THE REST OF IT IS ALL REFERENCE SLIDES.
I'M NOT GONNA GO OVER ALL OF THOSE.
THIS IS IN CASE WE HAVE QUESTIONS AND YOU WANT, YOU GOT, OR YOU WANNA SEE THE BACKUP TO HOW WE CALCULATE ALL THE DIFFERENT NUMBERS.
PULLED, PULLED THE STATE OUT OF REGGIE, UM, VETOED THE LEGISLATION.
BUT THEN THE NEW POTENTIAL GOVERNOR IS CONSIDERING NOT NEW POTENTIAL.
NO, SHE, SHE, SHE'S SAID SHE'S SO SHE, SORRY,
I'M NOT NO, NO, I WAS JUST SAYING YEAH, I, THE FORMER GOVERNOR PULLED OUT.
YEAH, THIS ONE THEY'RE SAYING IT'S GONNA PUT VIRGINIA COMMONWEALTH BACK IN.
I THINK THERE'S GONNA BE LAWSUITS AND STUFF, BUT YEAH.
SO, UM, BUT I WILL SAY, I, I, ONE MORE THING I GUESS ON POTOMAC, YOU KNOW, THIS, THIS IS A, A BIGGER POWER PLANT AND WE DON'T GET COME ACROSS THESE NEAR AS OFTEN.
YOU, IF YOU LOOK, WE'VE DONE SOME SOLAR DEALS HERE RECENTLY.
WE'VE DONE SOME WIND DEALS RECENTLY THAT COMBINE HEAT AND
[00:30:01]
POWER, UM, DEAL.BUT THIS IS NOT, THIS IS A STEEL IN THE GROUND MAJOR ASSET.
UM, THIS IS NOT SOMETHING THAT WE COME ACROSS VERY OFTEN.
SO THAT'S, THAT'S ONE OF THE REASONS WE'RE HERE TODAY, ESPECIALLY IN VIRGINIA.
UM, THERE'S NOT AS MANY POWER PLANTS IN VIRGINIA AS THERE USED TO BE.
CAN I ASK A QUESTION? YEAH, THAT MIGHT BE A SILLY QUESTION BECAUSE YOU SAID THEY'RE LOCATED IN LOUDOUN, RIGHT? TELL ME AT LEAST FOR LOUDOUN COUNTY, BUT, UM, ARE WE GONNA BE COMPETING FOR ENERGY WITH ALL THE DATA CENTERS THAT ARE LOCATED IN LOUDOUN? THE DATA CENTERS FOR THIS POWER PLANT, THOSE DATA CENTERS THERE ACTUALLY ONLY HELP BECAUSE IT DRIVES UP PRICE.
YOU GUYS ARE GONNA GET THE POWER FROM THAT FACILITY.
SO IF THERE'S A LOT OF PEOPLE NEEDING THAT POWER, UM, THAT KIND OF HELPS.
'CAUSE IF FOR SOME REASON YOU DON'T NEED THE POWER, YOU CAN SELL IT, SELL THE ACCESS.
UM, IT'LL ALSO, UM, THE WAY THE TRANSPORTATION COSTS WORK, WHICH SHOULD HELP US DECREASE OUR TRANSPORTATION COSTS AND SOME THINGS.
THEM BEING THERE FOR THIS PARTICULAR POWER PLANT ACTUALLY HELPS THEN IMAGINE WITH GOING TO THE DATA CENTERS, THEY HAVE THE MONEY FOR THE INFRASTRUCTURE MAKE, I JUST, YOU USED THE TERM RETIRE THE, THE POWER PLANTS.
SO THEY DON'T REPLACE, THEY DON'T REPLACE, THEY DON'T KEEP THEM GOING OR WHAT, WHAT'S THE SITUATION WITH THAT? SO POWER PLANTS ARE, THEY OPERATE IN A MARKET MOST OF, UH, MOST OF THE POWER PLANTS IN THE, IN THE MAJOR REGION MM-HMM
AND SO WHEN ONE RETIRES, IT DOES NOT MEAN ANOTHER ONE GETS BUILT.
SO YOU HAVE SOME PEOPLE OVER HERE BUILDING AND YOU HAVE SOME PEOPLE OVER HERE RETIRING, BUT THEY DON'T, THEY HAVE A MARKET TO MATCH THE, TO, TO TRY TO ACCOUNT FOR ALL OF THAT.
AND THAT'S WHAT THOSE CAPACITY CHARGES ARE.
AND THAT'S WHY WE'VE SEEN THEM GOING UP IS THAT THEY'VE BEEN RETIRING.
YOU KNOW, WHEN WE LOOK A LOT OF POWER PLANTS IN THE STATE OF VIRGINIA HAVE HAVE SHUT DOWN, ESPECIALLY THE COAL PLANTS.
UH, I DON'T BELIEVE THERE'S A COAL PLANT LEFT IN VIRGINIA, AT LEAST A MAJOR COAL PLANT AT THIS POINT.
UM, AND SO THERE'S JUST NOT BEEN ENOUGH GENERATION BUILT TO OFFSET THAT.
AND NOW WE HAVE ALL THE NEW DATA CENTERS.
THIS WAS A PROBLEM BEFORE ALL THE DATA CENTERS CAME.
AND NOW WITH ALL THE DATA CENTERS, IT IS A MAJOR, MAJOR PROBLEM
SO THERE'S NO IN, LIKE, THERE'S NO INCENTIVE FOR THEM TO, 'CAUSE IF THEY'RE, IF THEY'RE BUILT FOR COAL, THEY CAN'T JUST TRANSFORM AND NOW BECOME SALT WATER IS WHAT YOU'RE TELLING ME.
SOMEBODY HAS TO GO OUT AND RIGHT.
NOW THE WHOLE IDEA IS THE MARKET, RIGHT? SO THAT IF THERE'S NOT ENOUGH POWER PLANTS, 'CAUSE YOU'VE RETIRED A BUNCH, THE PRICES GO UP.
AND THAT SHOULD INCENTIVIZE MORE POWER PLANTS TO GET BUILT.
AND THAT'S ONE OF THE PROBLEMS RIGHT NOW IS I'LL CHEAT ONE OF MY REFERENCE SLIDES.
SO WHEN WE HAD ENOUGH POWER PLANTS, WE WERE SEEING REALLY LOW PRICES.
NOW WE'VE BEEN SEEING PRICES HERE AT $10 AND THIS IS A NEGOTIATED CAP BECAUSE IF THIS WAS CAP WAS NOT IN HERE, WE'D PROBABLY SEE 15 TO $25.
THAT'S WHAT THE NEW POWER PLANTS ARE SAYING THEY NEED IS 15 TO $25.
BUT THEY KEEP NEGOTIATING IN THE, IN THE, AND THE GOVERNORS AND THE WHITE HOUSE ACTUALLY CAME OUT TO TRY TO NEGOTIATE ANOTHER TWO YEAR CAP.
AND THAT'S WHY WE HAVE IT AT $10 AGAIN FOR TWO MORE YEARS.
THE PROBLEM WITH THIS IS, THIS IS MUCH HIGHER THAN WE WERE PAYING, BUT IT'S NOT HIGH ENOUGH.
ALL THE POWER PLANTS ARE SAYING THEY NEED 15 TO $25.
SO IT'S NOT ENOUGH TO GET NEW POWER PLANTS TO REALLY START BUILDING.
AND SO THIS THIS BECOMING A BAD SITUATION FOR RELIABILITY AND, AND, AND COSTS.
AND THEY'RE LOOKING AT A LOT OF OTHER POTENTIAL THINGS TO ADDRESS THIS BECAUSE IT'S BECOMING A PROBLEM.
BUT THIS IS, YOU CAN SEE THIS IS, YOU KNOW, WHEN THIS WAS A BIG, BIG JUMP IN, IN COSTS IN THIS MARKET.
ANY OTHER QUESTIONS? I DON'T THINK SO.
I'M ASSUMING THAT YOU WILL NEED DIRECTION ON THIS, RIGHT? BUT YEAH, ON THE NEXT AGENDA, RIGHT, THE MARCH 23RD MM-HMM
THIS DOESN'T INVOLVE A PUBLIC HEARING, SO WE CAN JUST PUT IT ON THE AGENDA.
IT WOULD BE A BUSINESS ITEM, A RESOLUTION.
IT CAN BE CONSENT OR BUSINESS.
CONSENT OR NEW BUSINESS, WHATEVER YOU'D LIKE.
ARE YOU ALL OKAY WITH CONSENT? 'CAUSE WE GOT A LOT OF OTHER PUBLIC HEARINGS THAT MAY, IF EVERYBODY'S ON BOARD WITH IT.
I MEAN, I MEAN, QUITE FRANKLY, IT'S NOT LIKE WE HAVE A CHOICE, SO, AND IT'S, IT SOUNDS
[00:35:01]
LIKE THERE'S SOME POSITIVES ALONG WITH THAT TOO.BUT WE'VE SEEN WHAT HAPPENS WHEN WE HAVE A LOT OF POWER IN THE OPEN MARKET.
IF EVERYBODY'S OKAY WITH CONSENT, HILLARY WILL DO CONSENT.
WE, I GUESS WE WILL HAVE TO SEE YOU FOR A LITTLE WHILE, RIGHT? ARE WE GONNA BE SET FOR A LITTLE WHILE? WE, YOU KNOW, WE MIGHT BE COMING BACK TO TALK A LITTLE BIT MORE ABOUT THAT SUMMER AND WINTER BEING ABLE TO MAKE IT EASIER TO PURCHASE SOME POWER DURING THE SUMMER AND WINTER TIMES.
BUT, UH, BUT THAT, BUT YEAH, THAT, THIS SHOULD BE IT FOR A LITTLE WHILE.
I LIKE, WILL WE SEE
I, YOU KNOW, I GO TO A LOT OF DIFFERENT, AND SOMETIMES I DRAG MY FAMILY AND THEY WERE ACTUALLY THE, MY FA THIS IS ONE OF MY, MY FAMILY'S FAVORITE PLACES.
AND THEN WITH THE NATIONAL PARK, WE'RE OUTDOOR PEOPLE.
YOU SAY THAT TO ALL THE PLACES.
I
ALRIGHT, NEXT UP IS THE AUTOMATED SOLID WASTE COLLECTION FEASIBILITY STUDY.
IT SAYS MSW CONSULTANTS, BUT I'M ASSUMING YOU'RE MR. WILSON'S GONNA BE SHARING.
SO, UM, A FEW MONTHS AGO THE TOWN HAD PURCHASED A NEW TRASH TRUCK.
AND, UH, ALONG WITH THAT, UH, COUNSEL REQUESTED THAT WE REVIEW, UH, THE FEASIBILITY FOR AN AUTOMATED SOLID WASTE COLLECTION SYSTEM.
UH, WE DID CONTRACT WITH MSW CONSULTANTS WHO HAD, UH, DONE OUR, UH, LAST SOLID WASTE STUDY THERE.
UM, UH, MR. JOHN CULBERTSON IS HERE.
UH, HE'S, UH, PRESENTED TO COUNCIL THERE A COUPLE OF TIMES, UH, DURING OUR SOLID WASTE, UH, COST OF SERVICE ANALYSIS.
UH, THEY'VE DONE A GREAT JOB FOR US AND HERE TO PRESENT THE RESULTS OF OUR FEASIBILITY STUDY.
SO WITH THAT, UH, WE'LL TURN THIS OVER.
YOU KNOW, THAT THIS IS LIKE YOUR FAVORITE PLACE TOO ISN'T JUST SO YOU KNOW THAT MY FAMILY LOVES THE DOWNTOWN AND THE NATIONAL PARK TOO.
WELL, FUNNY STORY IS THAT, UH, HIS, UM, UH, CYNTHIA, UH, THAT YOU GUYS HAVE MET BEFORE, UM, WAS GONNA BE PRESENTING AND UH, JOHN KIND OF TOOK THAT FROM HER 'CAUSE HE WANTED TO COME DOWN HERE.
SO I GREW UP HAVING A BUNCH OF FRIENDS IN, UH, I GREW UP IN INDIANA, VIRGINIA, A FELLOW VIRGINIA TOWN, SO THAT WAY.
SO I HAVE A LOT OF FRIENDS AND FAMILY UP HERE.
SO I SORT OF PULLED RANK
SO YEAH, SO I'M, I'LL TRY TO GO THROUGH THIS PRETTY QUICKLY.
UM, I THINK ACTUALLY I, I BELIEVE I RECOGNIZE MAYBE ALMOST EVERYONE, SO I WON'T GO.
WE WERE ALL, I WAS GONNA SAY, I WON'T GO THROUGH A WHOLE, UH, WHOLE INTRODUCTION.
YOU HAVEN'T CHANGED ANYTHING OTHER THAN TO SAY THAT.
UM, UM, I WORK WITH A, A VERY SPECIALIZED MANAGEMENT CONSULTING FIRM, AND WE CARE A LOT ABOUT HOW MUNICIPALITIES, UH, OPTIMIZE THEIR, UH, THEIR WASTE AND RECYCLING, UH, COLLECTION AND DISPOSAL PROCESSING SYSTEMS. THAT, THAT'S, THOSE ARE THE SERVICES EXPERTISE WE OFFER.
AND SO, UH, THE CYNTHIA, MY COLLEAGUE, UH, THAT WAS REFERRED TO, UM, WHO TOOK THE LEAD TECHNICALLY ON THIS PROJECT IS, UH, A FORMER SANITATION DIRECTOR FOR A PERFECTLY INTEGRATED, UH, PUBLIC SECTOR OF THE MIDWEST CITY THAT HAD RESIDENTIAL COLLECTION, COMMERCIAL COLLECTION, A LANDFILL COMPOST FACILITY, AND A RECYCLING FACILITY.
SO SHE KIND OF RAN THE WHOLE THING AND WAS THE FINANCIAL SPECIALIST AS WELL AS WE CAME UP THROUGH OPERATIONS INTO FINANCE.
SO REALLY VERY, VERY TALENTED AND VERY KNOWLEDGEABLE.
UM, AND I AM VERY FORTUNATE TO BE SUPPORTED JUST BY A WIDE RANGE OF STAFF FROM BOTH PRIVATE SECTOR INDUSTRY AND PUBLIC SECTOR SERVICE IN THE MUNICIPAL WASTE BUSINESS.
THAT'S KIND OF HOW, THAT'S HOW I GOT HERE, UH, UH, TO DO THIS.
AND SO, UM, AS WITH ALL OF OUR STUDIES, UM, WE PREFER TO BE, UM, I, I DON'T LIKE TO STAND UP AND JUST GIVE YOU MY OPINION.
WE LIKE TO COME IN AND DO SOME DUE DILIGENCE AND COMPILE DATA AND ATTRIBUTES THAT ARE IMPORTANT TO HOW YOU DO BUSINESS, HOW YOUR CUSTOMERS RECEIVE SERVICES, UH, AND COMPILE THOSE THINGS SO THAT WE CAN, UM, REFER TO MORE QUANTITATIVE BASIS.
SO, UM, THERE'S A QUICK SLIDE THAT JUST TALKS ABOUT WHAT WE DID HERE, BUT, UM, ONE OF THE IMPORTANT THINGS THAT WE DID IS, UH, LET'S SEE IF I CAN GO BACKWARDS AND FORTH.
SO ONE OF THE IMPORTANT THINGS THAT WE DID FOR THIS AUTOMATED STUDY, UM, INVOLVED ACTUALLY WORKING COLLABORATIVELY, UH, WITH TOWN STAFF TO GO LOOK AT DIFFERENT NEIGHBORHOODS AND LOOK AT THE, THE TOPOGRAPHY AND THE, THE STREET PARKING AND, AND, UH, UM, CUL-DE-SACS AND ONE WAY STREETS.
AND I'LL, I'LL GET INTO THAT A LITTLE BIT MORE.
UH, BUT THAT WAS SUPER IMPORTANT BECAUSE YOU CAN ONLY DO SO MUCH ON THE DESKTOP.
SOMETIMES YOU HAVE TO GET OUT INTO THE NEIGHBORHOOD, UH, WORK WITH YOUR CLIENT WHO, YOU KNOW, WHO STAFF.
VERY FORTUNATE, YOU HAVE SOME FOLKS WHO HAVE BEEN HERE A LONG TIME THAT KNOW YOUR TOWN AND WE WERE ABLE TO WORK WITH THEM AND REALLY GET GREAT INSIGHT INTO, UH, BOTH, YOU KNOW, POTENTIALLY GOOD THINGS AND POTENTIALLY, YOU KNOW, TOUGH THINGS WHEN IT COMES TO AUTOMATED.
SO WHAT IS, UM, SO TO TALK ABOUT WHAT IS AUTOMATED COLLECTION, I'LL
[00:40:01]
START WITH JUST SOME QUICK PICTURES ON YOUR CURRENT COLLECTION.UM, AND AGAIN, I'M NOT GONNA READ ANY OF THESE SLIDES, BUT THE, THE FUNDAMENTAL THING ABOUT YOUR CURRENT SYSTEM IS YOU USE A TRUCK THAT'S CALLED A REAR LOADER.
AND YOU CAN SEE IN ALL OF THESE PICTURES THERE'S A, UH, THERE'S A CREW SURROUNDING SORT OF THE BACK OF THE TRUCK WITH A VERY BIG HOPPER.
UH, AND SO THAT'S WHY THAT TRUCK IS LOADED FROM THE REAR.
AND IT IS A MANUAL, TYPICALLY A MANUAL OPERATION OR A SEMI-AUTOMATED OPERATION.
AND SO SEMI-AUTOMATED MEANS YOU CAN, UM, YOU CAN ATTACH CARTS TO FLIPPERS AND THAT'S GREAT 'CAUSE IT MEANS YOUR CREW DOESN'T HAVE TO DO THAT PHYSICALLY.
UM, AND SO, SO IT'S A SEMI-AUTOMATED REAR LOADERS CAN BE SEMI-AUTOMATED.
SO YOU MAY STILL HEAR THE TERM AUTOMATED WITH A SET WITH A REAR LOAD TRUCK, BUT THAT'S ONLY
AND SO, UM, SO THESE HAVE SERVED THE TOWN VERY WELL FOR A LONG PERIOD OF TIME.
YOUR FLEET MAINTENANCE FOLKS KNOW THE TRUCKS, YOUR OPERATORS KNOW HOW TO, HOW TO OPERATE AND DRIVE THE TRUCKS.
YOUR HELPERS KNOW HOW TO, HOW TO DO THE TRUCKS SO THAT THERE'S A GREAT DEAL OF, OF LONG TERM COMPANY THESE TRUCKS.
SO LET ME SWITCH OVER TO WHAT IS AUTOMATED COLLECTION.
AND REALLY I'M SPEAKING OF FULL AUTOMATION.
SO FULL AUTOMATION IS THE CONCEPT THAT YOU NO LONGER HAVE ANY HUMANS OUTSIDE THE TRUCK.
YOU HAVE A SINGLE EQUIPMENT OPERATOR SEATED IN THE CAB WITH A JOYSTICK AND WITH THE ABILITY TO OPERATE A HYDRAULIC ARM THAT CAN REACH OUT AND TIP A CART THAT'S ON THE CURB.
UH, THERE ARE A COUPLE OF DIFFERENT TYPES OF, UH, OF AUTOMATED TRUCKS.
UH, BUT ESSENTIALLY YOU CAN SEE THERE'S A SINGLE OPERATOR.
THIS CART WOULD BE ON THE GROUND AND THERE'S AN AUTOMATED ARM WITH A GRIPPER TIPS THE WAIST.
AND, AND THERE ARE MANY POSITIVES TO AUTOMATION.
UM, SAFETY IS A BIG ISSUE IN OUR INDUSTRY, AND YOU CAN IMAGINE THAT, UM, LETTING EQUIPMENT AND MACHINERY LIFT THOSE CARTS, WHICH ARE PRETTY HEAVY AND OFTENTIMES CAN BE FILLED PRETTY FULL, UM, THAT CUTS DOWN ON, ON THE POTENTIAL FOR INJURY.
UH, AND SO THERE, THERE DEFINITELY ARE POSITIVES.
THE PRIVATE SECTOR IN OUR SOLID WASTE INDUSTRY, UH, INCIDENTALLY HAS IDENTIFIED HOW IMPORTANT IT IS TO MOVE THEIR ROUTES TO THE GREATEST EXTENT POSSIBLE TO FULL AUTOMATION BECAUSE OF THAT HEALTH AND SAFETY ISSUE.
UM, AND I THINK, I THINK THE WISDOM IS IF YOU CAN PUT AN EQUIPMENT OPERATOR IN THE CAB, THAT BECOMES A CAREER JOB AS OPPOSED TO A SHORT TERM JOB FOR MAYBE A YOUNGER PERSON.
UH, AND IT GREATLY REDUCES INJURY.
SO SOME THINGS TO, THINGS TO THINK ABOUT.
SO SOME OTHER COMPARISONS BETWEEN FULL AUTOMATION.
AND SO THE, I I DO WANT TO TRY TO TOUCH ON ACRONYMS AS L'S, AUTOMATED SIDE LOADER.
SO I, I MIGHT USE A SL, BUT I MAY JUST STICK WITH AN AUTOMATED TRUCK, AUTOMATED SIDE LOADER.
UM, VERSUS YOUR CURRENT REAR LOAD, UH, REAR LOAD STAFF.
UM, SOME INTERESTING, YOU KNOW, THERE ARE PROS AND CONS TO EVERYTHING, RIGHT? SO ON THE PROS SIDE, UH, THAT AUTOMATED TRUCK HAS VERY FAST CYCLE TIMES.
UH, AND IF THAT TRUCK IS WELL MAINTAINED, HIGHER MAINTENANCE COSTS, BUT IF IT'S WELL MAINTAINED, UH, YOUR COLLECTION PRODUCTIVITY IS VERY HIGH.
THAT'S ANOTHER REASON WHY PRIVATE ENTITIES PREFER TO IMPLEMENT FULL AUTOMATION WHERE THEY HAVE A HUGE CUSTOMER BASE.
UM, AND CERTAINLY FROM A LABOR COST STANDPOINT, UH, YOU CAN'T GET ANY MORE FAVORABLE THAN A SINGLE OPERATOR.
I, I KNOW PROBABLY A LOT OF YOU FOLLOW, UH, YOU KNOW, AI AND DRONES AND ALL KINDS OF, UH, UH, FULL AUTOMATION AT DIFFERENT LEVELS.
BUT, UH, THERE, TO MY KNOWLEDGE, THERE IS NO, UH, GARBAGE INDUSTRY, UH, EXPECTATION OF ELIMINATING HUMAN OPERATORS FROM GARBAGE TRUCKS.
THAT, THAT'S FAR, FAR OUT IN THE, THE UNIVERSE OF, UH, UH, OF VEHICLE OPERATION.
AND I TALKED A LITTLE BIT ABOUT THE INJURY, UH, REDUCING INJURY.
OBVIOUSLY THOSE ARE ALL PROS, BUT ON THE FLIP SIDE, THESE TRUCKS, THESE AUTOMATED SIDE LOAD TRUCKS ARE MORE EXPENSIVE TO PURCHASE.
UM, THEY HAVE MORE, UH, HYDRAULICS AND MORE EQUIPMENT.
THEY'RE, THEY'RE MORE EXPENSIVE TO, UH, MAINTAIN.
THEY REQUIRE, UM, ADDITIONAL NEW MAINTENANCE.
YOU KNOW, IF YOU'VE GOT A GOOD MAINTENANCE SHOP AND THEY'RE GOOD WITH YOUR REAR LOADERS, THEY MAY HAVE A LITTLE BIT OF A LEARNING CURVE ON THE AUTOMATED SIDE LOADERS.
UH, AND SO, UM, YOU TEND TO SEE THESE TRUCKS GET BEAT UP FASTER.
SO THEY, THEY COST MORE TO BUY, THEY COST MORE TO OPERATE, THEY WEAR OUT FASTER.
SO YOU HAVE TO REFURBISH A LOT MORE, A LOT SOONER.
SO ALL TRADE OFFS, RIGHT? ALL TRADE OFFS.
UM, AND SO THIS IS STARTING TO TELL, YOU KNOW, THIS DOESN'T REALLY TELL THE STORY.
THIS IS THIS GOOD OR BAD, THESE ARE REALLY JUST COMPARISONS.
SO NOW LET'S TALK ABOUT WHAT, UM, WHAT WE WERE ABLE TO OBSERVE HERE IN THE TOWN, UH, THAT WOULD BE BARRIERS TO AUTOMATION.
THE FIRST WOULD BE, UM, THESE ARE NOT SMALL VEHICLES.
I'M SURE YOU'VE ALL EITHER, YOU KNOW, BEEN OUT WHEN YOUR, YOUR TRASH TRUCK COMES DOWN THE STREET, YOU SEE WHAT IT LOOKS LIKE, IT'S QUITE LARGE, OR YOU'VE BEEN OUT DRIVING AND YOU KNOW, YOU'RE ON MAYBE ON A, A ARTERIAL AND ONE PULLS UP NEXT TO YOU AND YOU KIND OF, KIND OF SURPRIS HOW BIG IT'S, THEY'RE BIG TRUCKS.
SO, UM, AUTOMATED TRUCKS, NOT ONLY DO THEY NEED CLEARANCE FOR THE TRUCK, THEY
[00:45:01]
STILL NEED TO GET CLOSE ENOUGH TO THE CURB SO THAT THEIR AUTOMATED ARM CAN ACCESS THE CARTS.AND CERTAINLY THERE ARE DIFFERENT SPEC UH, SPECIFICATIONS FOR HOW LONG AN ARM CAN REACH.
UM, BUT YOU HAVE TO CUT THAT OFF AT SOME POINT.
SO ANYTHING THAT IS AN IMPEDIMENT ON THE SIDE OF THE STREET, UH, IS DIFFICULT FOR AUTOMATED TRUCKS TO, TO POTENTIALLY REACH.
SO, SO ONE THING WOULD BE PARKING BOTH SIDES OF THREE PARKING THAT NARROWS THE STREET AND IT, UH, IMPAIRS ACCESS TO CARTS.
SO THAT'S NOT NECESSARILY A DEAL KILLER, BUT IT IS RELEVANT TO THE DECISION TO DEPLOY AUTOMATED SIDE LOAD TRUCKS.
SO A SECOND ONE THAT IS, UH, MAYBE EVEN A LITTLE MORE POTENTIALLY CHALLENGING IS THE NOTION OF THE ONE WAY STREET.
UM, THE BASIC AUTOMATED SIDE TRUCK ONLY HAS AN AUTOMATED ARM ON THE RIGHT SIDE.
AND IF YOU HAVE A ONE WAY STREET WITH HOMES ON BOTH SIDES OF THE STREET, YOU NOW AT THE MOMENT, UNLESS YOU WANT TO UPGRADE TO AN EVEN MORE EXPENSIVE SPECIALIZED COLLECTION TRUCK WITH AUTOMATED ARMS ON BOTH SIDES, WHICH ARE VERY RARELY UH, IMPLEMENTED, THOSE ARE NOT COMMONLY IMPLEMENTED.
IN FACT, UH, I DON'T BELIEVE ALL OF THE TRUCK MANUFACTURERS EVEN OFFER THAT ANYMORE BECAUSE THEY'RE SO SPECIALIZED.
BUT ONE WAY STREET, YOU KNOW, A LITTLE BIT OF A PROBLEM BECAUSE YOU EITHER NEED TO, UM, USE SOME SORT OF SEMI-AUTOMATION, YOU NEED TO HAVE ANOTHER CREW MEMBER AND IT SLOWS YOUR PRODUCTIVITY DOWN.
'CAUSE THAT AUTOMATED TRUCK ISN'T DESIGNED TO BE AS EFFICIENT FOR A HELPER TO ROLL THE CART OVER TO THE AUTOMATED ARM.
SO ONE WAY STREETS ARE POTENTIALLY CONCERNED, UM, I BELIEVE I'VE GOT DEAD ENDS AND CUL-DE-SACS KIND OF THE SAME CONCEPT.
UM, BUT IMAGINE STREETS WHERE YOU ONLY GO ONE DIRECTION IF IT'S A CUL-DE-SAC, MAYBE YOU CAN TURN AROUND IF THERE'S NO CUL-DE-SAC BACKING IS AN ISSUE IN THE SOLID WASTE DISTRICT.
SO, UM, IT UNFORTUNATELY FOR I BELIEVE THE MAJORITY OF THE PAST 10 YEARS, THE SOLID WASTE COLLECTION INDUSTRY HAS BEEN IN THE TOP 10, UM, LEAST SAFE, HIGHEST ACCIDENT RATE INDUSTRIES, UH, AS TRACKED, UH, AT THE, AT THE OSHA LEVEL.
THAT IS NOT LOST ON OUR FIELD.
WE ACTUALLY, UH, IN MY TIME IN THIS INDUSTRY, WE HAVE REALLY STARTED TO FOCUS ON HEALTH AND SAFETY.
SO BACKING HEAVY DUTY INDUSTRIAL TRUCKS, UH, IF YOU HAVE A REAR LOADER LIKE YOU DO NOW WITH AN OPERATOR AND ONE OR TWO CREW MEMBERS, YOU NOW HAVE, UM, CYNTHIA CALLS IT A GROUND GUIDE.
YOU HAVE A HUMAN THERE WHO CAN STAND AND SEE THE MIRROR AND SEE THE EQUIPMENT OPERATOR AND CAN CLEARLY SEE AND SURVEY THE BACKING AREA AND GUIDE THAT BACKING PROCESS.
AND SO THAT IS THE, THE SAFEST PRACTICE FOR BACKING HEAVY DUTY TRUCKS WITH A SINGLE EQUIPMENT OPERATOR.
UM, IF THERE ARE MANY DEAD END STREETS OR CUL-DE-SACS.
SO IN THE CASE OF A DEAD END STREET, YOU'VE GOTTA GO DOWN AND BACK IT ALL THE WAY UP, OR POTENTIALLY YOU HAVE TO BACK IT ALL THE WAY DOWN AND THEN DRIVE UP AND, AND YOU'LL SEE THERE ARE DIFFERENT REASONS TO DO THAT.
UH, BUT THAT'S A LOT OF BACKING ON A DEAD END STREET AND IN A CUL-DE-SAC, UM, IT'S SELDOM THAT YOU SEE CUL-DE-SACS WHERE A HEAVY DUTY TRUCK CAN MAKE A SMOOTH TURN WITHOUT DOING, YOU KNOW, A A THREE POINT OR A FOUR POINT OR SOME, SOME KIND OF ADDITIONAL STOPPING AND BACKING UP TO GET TURNED AROUND.
A LOT OF TIMES CUL-DE-SACS HAVE CARS PARKED THAT ALSO REDUCES THAT TURN IN RADIUS.
UH, AND SO THESE BECOME AT, AT, AT, AT, YOU KNOW, AT BEST IMPEDIMENTS TO PRODUCTIVITY.
UM, BUT AT WORST MORE SIGNIFICANT SAFETY CONCERNS.
SO HERE'S KIND OF THE DRUM ROLL.
UM, WE WERE ABLE TO WORK VERY CLOSELY, AS I SAID, GOING OUT THROUGH THE TOWN TO THE DIFFERENT NEIGHBORHOODS, UH, WORKING WITH TOWN STAFF.
UH, WE ALSO, UH, COLLABORATED WITH TOWN GIS UH, AND SO THE MAP THAT YOU'RE LOOKING AT REPRESENTS A VERY THOROUGH ACCOUNTING OF THE AREAS OF THE CITY THAT, UH, HAVE EITHER REALLY DIFFICULT BARRIERS OR INTERMITTENT BARRIERS TO AUTOMATED COLLECTION.
AND SO, UH, JUST I THINK BRIEFLY JUST 'CAUSE IT'S A LITTLE BIT SMALLER, A LOT OF COLORS FLOATING AROUND.
UH, BUT ESSENTIALLY THE GRAY SHADED AREAS, THE GRAY SHADES, THE LITTLE BLOCKS AND RECTANGLES ALL OVER ARE YOUR ONE WAY STREETS AND YOUR, YOUR CUL-DE-SACS, UM, WHERE YOU REALLY CAN'T CHANGE THE TOPOGRAPHY OF THAT STREET.
YOU'RE, YOU'RE STUCK WITH THAT.
UH, AND SO AUTOMATION WOULD EITHER, YOU'D HAVE TO MAKE SOME PRODUCTIVITY ADJUSTMENTS OR YOU'D POSSIBLY HAVE TO, UH, MOBILIZE ANOTHER SECOND SMALLER VEHICLE TO GO DUPLICATE EFFORT WITH A SMALLER VEHICLE OR A DIFFERENT VEHICLE IN THOSE AREAS.
AND THOSE ARE ALL BIG IMPEDIMENTS.
THE YELLOW SHADED AREAS, UH, WHICH WE CALL INTERMITTENT BARRIER BARRIERS ARE, UM, DEAD SIR NEIGHBORHOODS WITH A HIGHER PROPENSITY FOR ON STREET PARKING CARS ON BOTH SIDES OF THE STREET.
UM, SO THOSE AREN'T DEAL KILLERS.
UH, WE WORK WITH CLIENTS ESPECIALLY UP IN THE NORTHEAST,
[00:50:01]
THAT HAVE POLICIES THAT, UM, THAT REQUIRE PARKING ONLY ON CERTAIN NIGHTS OF THE WEEK,WE'VE SEEN THAT POLICY ION, BUT THOSE YELLOW AREAS ARE WHAT I WOULD IMAGINE, UH, ARE PROBABLY THE OLDER, A LITTLE BIT DENSER PARTS OF THE TOWN.
UH, YOU KNOW, NEIGHBORHOODS THAT, UH, HAVE HAD THEIR EXISTING SERVICE A LONG TIME WHERE THERE WOULD POTENTIALLY BE SOME CHANGES, UH, OF HOW RESIDENTS WOULD HAVE TO BEHAVE TO
I DIDN'T SEE THAT IN YOUR BARRIERS, BUT LIKE FOR IF YOU HAD A TOTALLY AUTOMATED VEHICLE WITH, UM, JUST ONE PERSON DRIVING MM-HMM
UM, AND THAT ARM ONLY EXTENDS A CERTAIN DISTANCE, THEN YOU'RE GONNA HAVE TO REQUIRE SOME EDUCATION ON YOUR RESIDENCE, RIGHT? ABSOLUTELY.
TO, TO MAKE SURE THAT THEY PUT IT IN THE EXACT PLACE.
AND THEN WHAT HAPPENS IN COMMUNITIES WHERE PEOPLE DON'T DO THAT? THEY GET, THEY JUST DON'T GET THEIR TRASH PICKED UP OR DO THEY GET FINED OR WHAT, WHAT HAPPENS WITH THAT? WELL, SO I, I THINK YOU'RE EXACTLY RIGHT THAT IN A COMMUNITY THAT HAS NOT HAD TO DEAL WITH CARTS, THERE IS ABSOLUTELY A WHOLE EDUCATION TO IMPLEMENT THOSE CARTS.
UM, YOU KNOW, KIND OF OFFHAND THEY NEED TO BE FACING A CERTAIN DIRECTION.
THEY NEED TO BE PLACED WITH ENOUGH SPACING BETWEEN THINGS LIKE FIRE HYDRANTS AND TREES AND MAILBOXES.
UM, THEY NEED TO BE, YOU KNOW, YOU CAN'T PUT 'EM HALFWAY UP YOUR DRIVEWAY AND, AND INSPECT THE ARM.
THERE WOULD JUST BE, UM, AS WOULD ANY SUBSTANTIAL CHANGE TO THE WAY SERVICES DELIVERED, YOU WOULD WANT TO UNDERGO EDUCATION, WHICH I THINK WE DIDN'T EVEN GET THERE FOR REASONS THAT I, I HOPE, I HOPE TO MAKE CLEAR AS WE GO THROUGH.
UM, BUT THAT IS, UM, IT'S INTERESTING.
I I THINK A LOT OF DEMAND FOR CARTS AMONG OTHER CITIES THAT WE WORK WITH TEND TO BE AREAS THAT HAVE SOME MIGRATION FOLKS MOVING FROM AREAS THAT HAVE AUTOMATED CART COLLECTION.
AND THEN THERE'S SORT OF A MIGRATION OUT, YOU KNOW, AWAY FROM A METRO AREA THAT DOESN'T HAVE THE CARTS.
AND I THINK THAT A LOT OF TIMES STARTS A DIALOGUE.
UM, BUT THE FOLKS THAT HAVE LIVED HERE A LONG TIME WOULD ABSOLUTELY NEED THAT SORT OF EDUCATION, JUST PREPPING TO BECOME AWARE OF WHAT WOULD BE, YOU'LL HEAR ISSUES WITH CARTS.
THEY ARE, UM, IRONICALLY THEY'RE PRETTY EASY TO WHEEL, EVEN A HEAVY CART.
SO YOU CAN GET A SMALLER CART, FOR EXAMPLE, FOR AN ELDERLY COUPLE, UM, OR A LARGER CART FOR A FAMILY.
SO THE, THE INDUSTRY HAS DONE A GOOD JOB CREATING, UH, THE VARIETY OF CART SIZES TO SUIT DIFFERENT FAMILIES AND DIFFERENT STRENGTH LEVELS.
BUT THEY'RE, THEY'RE, THEY'RE VERY, UH, ERGONOMICALLY SOUND TO TO WHEEL, BUT EDUCATION.
WELL, I JUST, YOU SAID ABOUT THE CARTS, I WAS THINKING, SO DOES THAT MEAN LIKE HYPOTHETICALLY IF WE WENT TO THAT SYSTEM THAT EVERYBODY WOULD HAVE TO GET NEW CARTS? NOT NECESSARILY.
YOU WOULDN'T NECESSARILY, YEAH.
SO, SO TYPICALLY CARTS ARE DESIGNED TO WORK BOTH IN A SEMI-AUTOMATED, UH, TRUCK LIKE YOU HAVE NOW, AND I BELIEVE YOU HAVE SEMI-AUTOMATED COLLECTION NOW.
SO THOSE CARTS WOULD BE COMPATIBLE GENERALLY SPEAKING.
UM, OH GOSH, THIS IS WHERE SENDING ME INSTEAD IF CYNTHIA IS GONNA LIMIT MY ANSWER, SHE WOULD BE ABLE TO TELL YOU EXACTLY WHERE YOUR CURRENT CARTS ARE REALLY GOOD WITH FULL AUTOMATION OR SOSO.
SHE WOULD HAVE AN OPINION ON EXACTLY HOW GOOD OR, OR MAYBE ALL THE CARTS ARE GOOD, THEY HAVE METAL.
THAT METAL BAR IS, IS FOR THE TIPPER TO CONNECT TO, TO LIFT.
WHEREAS MOST AUTOMATED TRUCKS, I WON'T GO BACK, BUT MOST AUTOMATED TRUCKS ARE USING KIND OF A RUBBER COATED GRASPING DEVICE GRIPS.
IT'S, UM, YOU'LL, YOU'LL HEAR, YOU'LL HEAR 'EM CALLED, UH, YOU KNOW, ONE ARM BANDITS, THAT'S A, THAT'S A PHRASE YOU HEAR, BUT THERE'S THE, THERE'S A SORT OF A RUBBER COATED GRIPPER THAT'S GONNA GRAB THE CART THAT THAT'S YEAH, OUR CANS ALREADY GO IN.
SO, UM, AND YOU KNOW, WE, WE, THERE AGAIN, YOU HEAR THING GOOD THINGS AND BAD THINGS ABOUT DIFFERENT CART MANUFACTURERS, BUT I, I WOULD SUBMIT THAT THE, THE CART MANUFACTURING FOLKS HAVE DONE A PRETTY GOOD JOB AT BUILDING A DURABLE PRODUCT.
THEY, THEY HAVE A 10 YEAR USEFUL LIGHT, THEY'RE NOT INEXPENSIVE.
I MEAN, YOU'RE, I'M SURE YOU'RE REPLACING THEM NOW AND, YOU KNOW, WHATEVER PRICE YOU'RE GETTING NOW, REPLACEMENT, YOU KNOW, TAKE THAT, MAYBE GET A LITTLE DISCOUNT IF YOU REDID THE WHOLE TOWN.
BUT I, I DON'T, WE DIDN'T THINK YOU WOULD NEED TO BUY ALL NEW CARTS IF YOU WENT AUTOMATED.
RIGHT? THAT IS DEFINITELY A PLUS.
UM, IF YOU WERE IN A POSITION WHERE YOU HAD TO BUY CARTS, THEY'RE, YOU KNOW, 60, $65 A POP ADDS UP PRETTY QUICK PER HOUSEHOLD.
SO, UH, JUST YOU'RE ALREADY POTENTIALLY THERE, BUT, BUT LET, LET ME MOVE FORWARD AND TALK A LITTLE BIT ABOUT HOW WE THINK ABOUT THIS CIRCUMSTANCE.
SO THE ONE AREA THAT I DIDN'T MENTION ARE JUST THE PURE ORANGE DOTS, WHICH ARE AREAS OF THE TOWN THAT WE THINK WOULD BE HIGHLY COMPATIBLE WITH AN AUTOMATED SIDE OF TRUCK.
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UM, I WOULD MAYBE TO USE A, A, YOU KNOW, COLLOQUIAL TERMS, MAYBE THOSE ARE THE MORE SORT OF SUBURBAN NEIGHBORHOODS IN, YOU KNOW, WITHIN THE TOWN BORDERS.I WOULD SORT OF HYPOTHESIZE MAYBE THEY'RE A LITTLE BIT NEWER.
I DON'T KNOW, AGAIN, CYNTHIA WOULD TELL YOU EXACTLY, BUT ALL OF THOSE ORANGE DOTS, YOU COULD, WE THINK PRETTY READILY SERVICE, AUTOMATED COLLECTION, BUT SO THAT'S GOOD.
SO THERE'S SOME POTENTIAL, BUT LET'S GET INTO THE NUMBERS, WHICH ARE REALLY IMPORTANT TO PARSE DOWN, GOOD OR BAD FOR FULL AUTOMATED, AUTOMATED SILO LOAD.
SO AGAIN, WITH THE HELP OF THE TOWN AND WITH THE GIS, WE ACTUALLY WENT THROUGH ALL YOUR ROUTES ALL FIVE DAYS OF THE WEEK AND LOOKED AT THE INDIVIDUAL ROUTE, UH, UH, BORDERS.
UM, AND BASED ON THE TOURING WE DID, AND THE GIS MAP WE PUT TOGETHER, WE ACTUALLY TABULATED SPECIFICALLY THE NUMBER OF HOUSES THAT HAD PARTICULAR ISSUES OR A LOT OF, UH, PARKING ON BOTH SIDES OF THE STREET.
UM, I, I, YOU'LL HAVE TO READ, I WON'T READ THEM TO YOU, BUT, UH, CYNTHIA, I KNOW IN PUTTING THIS TABLE TOGETHER, TRIED TO TO MENTION WHAT SOME OF THE DIFFERENT, UH, ISSUES WERE.
AND SO I, I DON'T KNOW WHY WE DID IT THIS WAY, BUT ALMOST A LITTLE OVER 4,800 OF THE HOUSING UNITS IN THE TOWN ARE NOT SLAM DUNKS FOR AUTOMATION.
UM, THE ONES THAT, NOW ADMITTEDLY, THERE ARE ABOUT 4,000 OUT OF THE 4,800 THAT YOU COULD PROBABLY PASS POLICIES, YOU COULD PROBABLY HAVE PEOPLE MOVE THEIR CARS FOR ONE DAY OF THE WEEK OF THEIR REFUGE COLLECTIONS SO THAT AN AUTOMATED TRUCK COULD GET THEIR OWN SIDE.
UH, BUT, BUT THAT, YOU KNOW, THAT TAKES SOME DOING UNLESS YOU HAVE A WHOLE LOT OF PARKING NEAR YOUR NEIGHBORHOODS.
UH, AND THEN THERE'S SORT OF A SMALLER NUMBER THAT WOULD JUST BE REALLY DIFFICULT THAT YOU PROBABLY NEED TO DEPLOY SOME KIND OF A SMALLER VEHICLE.
SO I WANT YOU TO REMEMBER, UH, THIS IS 70.
WE, WE DID THE MATH EXACTLY, AND WE FOUND ALMOST 80% OF HOUSES WOULD TAKE SOME MANAGEMENT TO SERVE WITH AN AUTOMATED SILO.
THEY WOULDN'T JUST BE A SLAM DUNK.
SO IF I USED 80%, SO LET ME SEE.
I THINK THIS IS ACTUALLY THE CRUX OF THE MEASURE.
SO THE STATUS QUO, YOU HAVE 5,900 HOUSES THAT YOU'RE SERVING THROUGH AUTOMATED COLLECTIONS.
WELL, IF YOU TAKE THAT, ONLY ABOUT 20% OF THE TOWN IS A SLAM DUNK FOR AUTOMATION.
THAT GETS YOU UP TO ABOUT 1200 HOUSES AND LEAVES YOU THAT NUMBER FOR, IT'S A LITTLE BIT DIFFERENT, BUT IT LEAVES YOU WITH A LOT OF HOUSES THAT ARE NOT A SLAM DUNK.
YOU'D HAVE TO DO A FAIR AMOUNT OF POLICY CHANGING.
YOU'D HAVE TO, YOU KNOW, SEE IF IT WORKS.
AND YOU MAYBE COULDN'T GUARANTEE IT WOULD WORK THROUGHOUT OF THOSE HOUSES.
WELL, THIS IS A PRETTY SMALL NUMBER OF HOUSES FOR A LARGE, EXPENSIVE AUTOMATED SIDE LOADING TRUCK TO BE USED TO ITS FULL CAPACITY.
AUTOMATED SIDE LOAD TRUCKS COST SOMEWHERE BETWEEN, CALL IT FOUR AND A QUARTER AND FOUR $75,000 A POP.
SO THEY'RE NOT, THEY'RE NOT CHEAP.
AND IN THE SALT WASTE INDUSTRY, IF YOU ARE PROVIDING ANY COLLECTION, YOU NEED TO HAVE, NOT JUST YOUR ACTIVE VEHICLE, YOU NEED TO HAVE SOME, UH, MECHANISM FOR A SPARE VEHICLE.
SO YOU CAN IMAGINE, UM, IF YOU DON'T HAVE VERY MANY CUSTOMERS THAT ARE SLIM DUNK AUTOMATED CUSTOMERS, AND YOU HAVE TO BUY A NEW TRUCK AT, YOU KNOW, CALL IT 450,000, AND ALSO HAVE ARRANGEMENTS FOR A SPARE AUTOMATED TRUCK, YOU'RE STARTING TO TALK ABOUT VERY HIGH CAPITAL COSTS.
SO WE HAVE, UM, ONE OF THE, THE SKILLS THAT WE HAVE IS SOME VERY IN-DEPTH ABILITY TO MODEL, UH, HIGH DENSITY RESIDENTIAL COLLECTION.
SO WE USED OUR, UH, MODELING TOOLS, WHICH TAKE INTO ACCOUNT HOW MANY HOUSEHOLDS YOU'RE SERVING, KIND OF WHAT'S YOUR AVERAGE GENERATION PER HOUSEHOLD, WHAT ARE INDUSTRY STANDARD PRODUCTIVITY RATES FOR COLLECTION, UH, SOME OTHER THINGS ASSOCIATED WITH JUST THE, THE DRIVE TIME TO FLEET YARDS INTO TIP.
AND SO WE HAVE THIS MIDDLE ROW CALLED OPTIMAL UTILIZATION.
WELL, IN ORDER FOR YOU TO GET A FULLY AUTOMATED SIDELOADING TRUCK TO REALLY BE USED TO AN INDUSTRY DESIRED LEVEL OF CAPACITY, YOU WOULD NEED ALMOST 3000 HOUSEHOLDS TO BE READY TO GO FOR AUTOMATION.
BECAUSE THOSE TRUCKS ARE SO LARGE AND PRODUCTIVE.
THEY'RE, YOU KNOW, WE DIVIDE 3000 BY, YOU KNOW, BY FIVE, THAT'S, YOU KNOW, KIND OF DUE TO MATH, 600 HOUSES PER DAY FOR FIVE DAYS A WEEK.
THAT'S A FULLY UTILIZED ASSET.
YOU CAN GO TO ANY PRIVATE HAULER, AND THEY'RE, WHEN THEY'RE BUYING THEIR TRUCKS AT $450,000 A POP, THEY ARE RUNNING THOSE THINGS EIGHT TO 10 HOURS A DAY, FIVE TO SIX DAYS A WEEK, BECAUSE THAT'S A HUGE CAPITAL INVESTMENT.
SO OUR REACTION TO THIS SORT OF, THIS MATHEMATICAL LIMIT TO THE SIZE OF THE COUNTER FRONT ROYAL, IS IT'S HARD TO WANT TO SPEND A LOT OF MONEY TO SERVICE A NUMBER OF HOUSEHOLDS THAT DON'T EVEN REALLY LET THAT ASSET BE USED TO ITS FULL POTENTIAL.
AND IT'S A VERY EXPENSIVE ASSET.
[01:00:01]
YOU KNOW, WHAT THIS IS ALL SAYING.AND SO IN ORDER TO GET UP TO A FULL ROUTE, ONE ROUTE PER DAY, FIVE DAYS A WEEK, IF YOU'RE GONNA USE THAT TRUCK ON THIS OPTIMAL LEVEL TO HAVE A FULL ROUTE, WE'RE AFRAID THAT IF YOU BUY THAT TRUCK AND YOU'RE ONLY GETTING ABOUT HALF A ROUTE A DAY, IT'S HARD TO, IT'S HARD TO MAKE THE RECOMMENDATION, UM, THAT THAT'S GOING TO BE A GOOD USE OF YOUR CAPITAL.
SO I THINK I PROBABLY COVERED MOST OF THESE, BUT I WILL TRY TO GET SOME CONCLUSIONS.
I MEAN, WE'VE, YOU KNOW, WE'VE TALKED ABOUT, YOU KNOW, BIG PICTURE.
FIRST OF ALL, YOUR CURRENT SYSTEM IS WORKING VERY WELL.
UM, YOU'RE, YOU KNOW, THE TOWN HAS BEEN ABLE TO FIND STAFF TO PROVIDE THE SERVICE.
UM, THAT IS THE REPORTS THAT WE'RE GETTING.
AND IT MAKES SENSE TO ME BECAUSE YOU'VE HAD, UM, IN THE TIME I'VE BEEN HERE, YOU'VE HAD FOLKS THAT, YOU KNOW, THEY KNOW THEIR STUFF.
THEY, UH, WE HAVEN'T SEEN A TON OF TURNOVER.
AND YOU HAVE AN OLDER TOWN WITH, UH, A, A DEPARTMENT THAT UNDERSTANDS ALL OF THE, THE NUANCES AND THE, THE SORT OF DISCREPANCIES AROUND YOUR NEIGHBORHOODS.
UH, THEY KNOW HOW TO SERVICE YOUR AREA.
SO IT'S NOT LIKE THINGS ARE GOING POORLY, BUT IN THE NEIGHBORHOODS, MAYBE WHERE AN AUTOMATED SIDE LOADER WOULD BE REALLY SLICK AND GO REALLY FAST, AND NOW THERE'S JUST AN OLD, KIND OF AN OLD FASHIONED REAR LOADER.
WELL, THAT'S MAYBE THE, YOU KNOW, MAYBE THE PRICE YOU PAY.
UM, BUT WE, BECAUSE OF THE RELATIVELY SMALL NUMBER OF HOUSING UNITS WHERE AUTOMATION WOULD BE JUST A CLEAR KIND OF NO BRAINER, UM, WE HAD TROUBLE, WE WERE HAVING TROUBLE THINKING THAT WE WOULD WANT TO RECOMMEND THAT TO THE TOWN.
AND SO THAT SAID, UM, THAT DOESN'T MEAN AUTOMATION IS BAD.
THAT DOESN'T MEAN YOU SHOULD NEVER HAVE AUTOMATION, BUT FROM OUR STANDPOINT, UM, WE THINK IT WARRANTS THINKING A LITTLE BIT DIFFERENTLY ABOUT WHAT WOULD CAUSE YOU TO PURSUE AUTOMATED COLLECTION.
UM, AND THIS IS SOMETHING THAT WE HAVE SEEN AMONG OUR CLIENTS IN, AMONG CITIES AROUND, AROUND THE COUNTRY.
IF YOU HAVE NEIGHBORHOODS WHERE, FOR WHATEVER REASON, UM, THE, THE NEIGHBORHOOD, WHATEVER THAT IS, WHETHER IT'S A HOMEOWNER'S ASSOCIATION, WHETHER IT'S AN AREA OF THE TOWN, SOME OTHER GROUP OF HOUSES, AND THEY JUST, THEY JUST CAN'T, THEY HAVE TO HAVE AUTOMATION.
IT IS NOT A PROBLEM TO GO HIRE A PRIVATE HAULER TO DO SMALL GROUPS OF CUSTOMERS AND, AND DO AUTOMATED COLLECTION IN SMALL NEIGHBORHOODS THAT ARE VERY, VERY, UM, OPEN FOR AUTOMATION.
AND SO, UH, I THINK THE, THE SORT OF THE FINAL THOUGHT THAT WE WANTED TO LEAVE YOU WITH IS THAT IF YOU HAVE SUCH NEIGHBORHOODS, IF YOU HAVE, UM, RESIDENTS, UH, IN THE TOWN WHO FEEL LIKE, YOU KNOW, HEY, WE REALLY WANT AUTOMATION, WE DON'T WANT THESE OLD FASHIONED REAR LOADERS, UM, THAT COULD TOTALLY BE DONE RIGHT AWAY, BUT JUST WITH A SIMPLE PRIVATE BID, UM, A PRIVATE COMPANY IN THE COLLECTION BUSINESS, UM, WOULD BE MUCH BETTER ABLE TO TUCK IN A SMALL NUMBER OF HOUSEHOLDS IN FRONT ROYAL WITHIN THEIR EXISTING COLLECTION FLEET.
THEY WOULDN'T NECESSARILY HAVE TO GO BUY TWO BRAND NEW AUTOMATED TRUCKS JUST TO TUCK IN TWO OR THREE OR 400 HOUSES A DAY, UH, IN FRONT ROYAL.
SO THAT WOULD KIND OF BE WHERE WE ENDED UP AS MAYBE HOW TO THINK ABOUT THINGS.
HOWEVER, IF THE TOWN GROWS, AND, UM, I UNDERSTAND YOU PROVIDE PRETTY MUCH ALL THE UTILITIES, SO THERE'S I'M SURE GROWTH CONSIDERATIONS FOR, UH, ALL ASPECTS OF PROVIDING UTILITY SERVICES.
BUT IF THE TOWN DID START TO UNDERGO SOME GROWTH, WHETHER THROUGH ORGANIC NEW DEVELOPMENTS WITHIN THE BOUNDARIES, OR WHETHER THROUGH ANNEXATION AND THOSE NEW HOUSING UNITS AND NEW NEIGHBORHOODS WERE MORE SORT OF SUBURBAN IN NATURE, THEN YOU COULD CERTAINLY REVISIT AUTOMATION AS SOMETHING TO BE PROVIDED DIRECTLY BY THE TOWN IN THE FUTURE.
UH, BUT AT THE CURRENT TIME, OUR FEELING HAVING GONE THROUGH A REALLY DETAILED EXERCISE IN COLLABORATION WITH YOUR STAFF WHO REALLY KNOW, UH, FRONT ROYAL, AND, YOU KNOW, THEY WILL TAKE US AROUND.
IS IT, IT'S PROBABLY PREMATURE TO DO THAT.
AND SO I GUESS I'LL STOP THERE.
I, I DO, I ALSO FEEL A LITTLE, I GUESS I WANNA SAY ONE MORE THING BEFORE I PAUSE AND OPEN IT UP FOR QUESTIONS.
UM, IN MENTIONING THAT IT MIGHT BE WORTHWHILE TO HAVE A PRIVATE COMPANY COME IN AND DO A SMALL POCKET OF AUTOMATION.
I'M NOT MEANING TO SAY, OH, PRIVATIZATION, UH, WE HEAR A LOT ABOUT PRIVATIZATION IN THE SOLID WASTE INDUSTRY.
AND I AM NOT SUGGESTING THAT PRIVATIZATION OF THE COUNTER FRONT OIL SOLID WASTE COLLECTION, I'M, I'M NOT HERE TO TALK ABOUT THAT.
I'M JUST, I THINK WE'RE MAKING THE OBSERVATION THAT IF YOU HAVE CUSTOMERS DEMANDING THAT SERVICE, THEN YOU COULD VERY EASILY GO OUT BID FOR A WELL-DEFINED SMALL, RELATIVELY SMALL NUMBER OF NEIGHBORHOODS AND HOUSES.
AND IT WOULD BE REASONABLE THAT YOU WOULD GET, I WOULD THINK, SOME COMPETITIVE BIDS.
WE DIDN'T DO A MARKET ANALYSIS OF YOUR LOCAL HAULERS HAVE HAD SOME SORT OF QUALITATIVE DISCUSSIONS.
AND I THINK WE UNDERSTAND THAT, UH, THERE ARE BOTH LARGE HAULERS AND SOME SMALLER FOLKS THAT GIVE YOU SOME COMPETITION HERE IN, IN
[01:05:01]
THE REGION.UM, AND SO IF AUTOMATION BECOMES SOMETHING THAT YOUR CUSTOMERS ARE DEMANDING, THEN ABSOLUTELY YOU COULD, YOU COULD GO OFF BID.
AND I THINK THAT GETS ME TO THE END AND HAPPY TO ANSWER ANY QUESTIONS.
THANK YOU FOR YOUR, AS USUAL, YOU KNOW ME, I KIND OF LAY A LOT ON YOU IN A, A SHORT PERIOD OF TIME, SO THANK YOU FOR YOUR ATTENTION.
SO ANY QUESTIONS FOR MR. CUL? THANKS.
THANKS FOR PUTTING THE NUMBERS THERE.
I MEAN, THAT'S RAW DATA, YOU KNOW, IT'S, IT'S FACTS.
IT'S, IT'S NOT STUFF YOU JUST PULLED OUTTA THE AIR.
YOU KNOW, AND, AND GETTING IN DEPTH AS YOU GUYS DID.
SO THIS ALLOWS A CLEAR EXPLANATION YEAH.
YOU KNOW, OF, OF, UH, YOU KNOW, WHAT IDEA THAT WE HAD.
SO, NO, YEAH, IT, IT'S, IT'S A GOOD ONE.
IT, IT'S A GOOD IDEA FOR SAFETY, GOOD IDEA FOR PRODUCTIVITY, UM, IN OUR SCALE.
IT REALLY IS AN ISSUE OF SCALE HERE IN FRONT OIL.
AND, AND THAT IS SOMETHING WE FACE WITH A LOT OF OUR CLIENTS THERE.
THERE'S SORT OF A, A MINIMUM THAT WHEN YOU HIT A SCALE, IT JUST GETS A LITTLE TOUGHER, YOU KNOW, TO DO THOSE LARGE SCALE TECHNOLOGY MIGRATIONS.
SO I THINK THAT'S KIND OF WHAT WE'VE RUN INTO.
BUT YOU KNOW, YOU KNOW, YOUR GROWTH, UM, YOU KNOW, YOUR CUSTOMER DEMAND, THERE IS NO REASON THAT TALENT CAN'T CONTINUE PROVIDING THAT SERVICE, YOU KNOW, TO SERVE YOUR CUSTOMERS IF THEY'RE ASKING FOR IT.
I THINK IT, IT'S IMPORTANT TO US THAT YOU GO ABOUT THAT THE BEST WAY.
IT'S NOT GONNA HAMSTRING YOU GUYS WITH A HALF A MILLION DOLLAR INVESTMENT THAT DOESN'T GET USED.
UM, BUT THAT DOESN'T HAVE TO STOP YOU FROM DELIVERING EXCELLENT SERVICE, WHICH YOU ALREADY DO.
AND IF AUTOMATION IS A PART OF THAT IN THE FUTURE, YOU KNOW, WE THINK THERE'S AVENUES FOR THAT.
SO I APPRECIATE THE OPPORTUNITY TO SHARE, YOU KNOW, SOME OF THOSE NUANCES.
AND, UH, SORRY TO DROP SO MUCH ON YOU HERE LATER.
NO, IT'S REFRESHING TO NOT BE SOLD.
YOU KNOW, LIKE YOU, YOU KNOW, YOU'RE, YOU'RE TELLING US NO, IT'S NOT A GOOD INVESTMENT.
AND, UH, BASICALLY, UM, AT THIS TIME, AND IT'S, IT'S REFRESHING TO HAVE SOMEBODY COME AND DO THAT.
'CAUSE USUALLY FOLKS ARE TRYING TO SELL US SOMETHING.
IT IS TO THAT POINT, UM, WE BELIEVE IT IS CRITICAL FOR US.
SO WE, WE BELIEVE THAT OUR INDEPENDENCE IS CRITICAL FOR US IN OUR POSITION AS A MANAGEMENT CONSULTANT.
SO WE DON'T WORK FOR THE HAULING COMPANIES.
WE DON'T SELL ANY TRUCKS, WE DON'T SELL ANY TECHNOLOGY.
UM, WE, WE ACTUALLY DON'T HAVE AN, WE'RE NON-ENGINEERING CONSULTANTS.
WE DON'T HAVE AN ENGINEERING DEPARTMENT BECAUSE I SPENT 10 YEARS WORKING AT THE NATIONAL CONSULTING ENGINEERING FIRM, AND THE PLANNING CONSULTANT, FEASIBILITY CONSULTING SORT OF LED TO ENGINEERING PROJECTS.
SO WE, WE'VE BEEN VERY CONSCIOUS TO BE INDEPENDENT SO THAT WE CAN, HONESTLY, I WOULD RATHER GIVE YOU A RECOMMENDATION, HAVE YOU ALL HATE OUR RECOMMENDATION THAT WE, WE CAN STAND BY THAN I WOULD COME IN AND MAKE YOU HAPPY AND GIVE YOU A RECOMMENDATION THAT IS IN BACKED UP BY THE DATA.
SO I APPRECIATE, WE REALLY APPRECIATE THAT.
I THINK THAT THE OPTIMAL, THE OPTIMAL UTILIZATION SCENARIO THAT YOU'VE THROWN OUT, YOU KNOW, PRETTY MUCH DOES.
I WAS JUST GONNA SAY ON THERE, YOU WERE SAYING LIKE SOME OF THE NEIGHBORHOODS AND MOVING CARS AND THINGS LIKE THAT, AND I OBVIOUSLY NOT HERE, BUT I KNOW THERE ARE OTHER PLACES, UM, WHERE THEY'LL SAY, YOU KNOW, ON TUESDAY YOU CAN PARK ON THIS SIDE OF THE ROAD THURSDAY, OR EVEN LIKE SNOW REMOVAL AND THINGS LIKE THAT.
BUT SOME OF OUR DOWNTOWN STREETS, THERE IS NOWHERE ELSE FOR THEM TO PARK.
YOU KNOW, THEY WERE, THEY WERE CONSTRUCTED WHEN AUTOMOBILES WEREN'T, AND YOU KNOW, SO THERE, YOU KNOW, THERE ISN'T ANY ROOM FOR THEM TO GO.
NOT THAT YOU WERE SUGGESTING THAT, I'M JUST SAYING, LIKE, AND LISTENING TO ALL THAT YOU WERE SAYING, I WAS LIKE, OKAY, IF WE EVER DID GET TO A POINT WHERE THAT, THAT WE DIDN'T HAVE THE STAFF TO DO IT, AND WE WERE FORCED TO GO WITH THAT, I DON'T EVEN KNOW HOW IT WOULD BE FEASIBLE AND SOME OF OUR OLDER NEIGHBORHOODS.
SO, TO BE HONEST, ONE OF OUR LONGTIME CLIENTS IS THE CITY OF PHILADELPHIA.
IF YOU'VE EVER BEEN TO SOUTH SOUTH PHILADELPHIA, IT IS THE TIGHTEST STREETS YOU HAVE EVER SEEN.
AND, AND I, MY OBSERVATION, I, I THINK THAT OLDER CITIES THAT HAVE THE DENSER DOWNTOWN AREAS, STREET PARKING, THEY, THEY JUST GET A BEATING FOR DELIVERING GREAT SERVICE IN A HARSH ENVIRONMENT.
I, I JUST THINK PEOPLE DON'T REALIZE HOW DIFFICULT IT IS TO SERVE AN OLDER AREA LIKE THAT.
AND WHY, THAT'S WHY REALTORS WERE INVENTED.
SO I, I ALWAYS TRY TO, YOU KNOW, GIVE A LITTLE BIT OF A, YOU KNOW, A HURRAH TO THE FOLKS THAT HAVE TO DEAL WITH THE TOPOGRAPHY THAT YOU HAVE HERE IN, IN FRONT ROYAL.
AND I, I DON'T WANT TO LEAD WITH THAT.
'CAUSE I'M NOT, YOU, YOU KNOW YOUR COMMUNITY BETTER THAN I DO.
YOU KNOW, WHAT YOUR NEIGHBORHOODS WANT, BUT I I WE WANT TO GIVE YOU THE NUMBERS TO MAKE GOOD DECISIONS AND WANT TO GIVE YOU OPTIONS TO SERVE YOUR CUSTOMERS.
SO I APPRECIATE THE OPPORTUNITY TO DO THAT.
THANK YOU FOR DOING THIS, SIR.
ANY OTHER QUESTIONS OR COMMENTS OR CONCERNS? THANK YOU.
THANK, THANKS FOR VISITING US.
NEXT STEP IS ITEM NUMBER FOUR, UM,
[01:10:01]
BUDGET, ADDITIONAL DISCUSSION.AND YOU GUYS KNOW THAT MR. WILSON CAME LAST WEEK, SHARED LOTS OF INFORMATION.
EVERYBODY COULD GO HOME WITH IT, THINK ABOUT IT, DIGEST IT, AND THIS IS AN OPPORTUNITY FOR COUNSEL TO HAVE ANY OTHER QUESTIONS OR CONCERNS.
NOT THAT YOU DON'T HAVE THE OPPORTUNITY AGAIN, BUT I'M JUST SAYING THIS WAS ANOTHER OPPORTUNITY.
SO, SO THE, UM, UH, THE NEXT TIME WE'LL BE COMING BACK WILL BE ON APRIL 7TH TO DISCUSS THE WHAT TO ADVERTISE FOR THE PROPOSED TAX RATES.
UH, THIS IS JUST THE OPPORTUNITY TO DISCUSS ANYTHING ELSE THAT MAY COME ABOUT.
ANYBODY HAVE ANY QUESTIONS? SO IT SOUNDS LIKE FROM LAST WEEK WHEN YOU STAYED TO DISCUSS LIKE, THE TAX RATES, I JUST WANNA SAY THAT I'M VERY APPRECIATIVE OF THE FACT THAT YOU ALL WORKED VERY HARD TO TRY TO BALANCE BUDGET WITHOUT MAJOR TAX.
LIKE I'M SURE WE CAN ALL SEE THAT.
I RECOGNIZE THAT'S NOT JUST YOU ALL.
I RECOGNIZE THAT, THAT, THAT THERE IS SOME SACRIFICES BEING MADE BY OUR STAFF, YOU KNOW, DEPARTMENTS THAT, YOU KNOW, MAYBE WANTED THINGS THAT WE, WE WEREN'T ABLE TO AFFORD AT THIS TIME, OR, YOU KNOW, AS ASSUMING THIS BUDGET GOES FORWARD.
SO I JUST WANNA SAY THAT I ACKNOWLEDGE THAT IT WAS CHALLENGING FOR YOU TO FIGURE OUT HOW TO DO THAT.
NOW WITH THAT BEING SAID, IF CITIZENS WANT MORE SERVICES OR WANT MORE THINGS, THEN BY ALL MEANS WE CAN, YOU KNOW, COULD ALWAYS ENTERTAIN IT.
BUT IT'S NOT GONNA BE ENTERTAINED WITHOUT A COST.
LIKE JUST AS IN YOUR OWN HOME OR YOUR OWN HOUSE, UM, YOU TRY TO MEET YOUR NEEDS AND YOUR WANTS SOMETIMES, UM, BECAME, YOU KNOW, IT'S A DIFFERENT STORY, BUT FROM WHAT I SAW LAST WEEK, THE TAX RATES WOULD BE THAT THE, IT LOOKS LIKE IT'S A BUMP, BUT IT'S REALLY JUST TO MAKE UP FOR WHAT HAPPENED TO US LAST YEAR.
AND SO IT, IT WOULD'VE BEEN THE EQUALIZED RATE.
HAD WE HAD ALL THAT INFORMATION LAST YEAR, IT WOULD'VE BEEN THAT AND IT WOULD'VE STAYED THAT.
BUT A LITTLE BIT THAT'S, THAT, THAT WILL LOOK LIKE AN INCREASE IS REALLY JUST TO THE BEST.
IT'S REFRESHING OUR RESERVES IN A WAY.
YEAH, I MEAN THAT'S HOW AT IT.
SO BRING THIS BACK TO THE LEVEL WE WOULD'VE BEEN AT LAST YEAR.
IS THERE ANYTHING ELSE GOING ON WITH THIS? RATE'S GOING UP AND THAT RATE'S GOING UP, YOU KNOW, WHILE OUR TAXES MAY NOT BE GOING UP, FOLKS ARE GOING TO HAVE TO GIVE A LITTLE BIT MORE OUT OF THEIR POCKET TO DO, TO HAVE THE SAME LEVEL CHOICE THEY'RE GETTING IN OUT OF OUR ENTERPRISE.
SO, COUNSEL, DOES ANYBODY ELSE HAVE ANY QUESTIONS OR COMMENTS? YES, COUNCIL MEMBER WOOD.
SO REVIEWING THE BUDGET AND GOING THROUGH IT, OF COURSE, STAFF HAD GIVEN US A PROPOSED BUDGETARY ITEMS THAT THEY, THAT THEY FELT THEY NEEDED TO ADD, BUT WAS NOT IN THIS BUDGET.
WE HAVEN'T DISCUSSED LOOKING AT THE COLA FOR OUR EMPLOYEES.
AND I DON'T KNOW IF THIS IS A PLACE TO DO IT.
THERE WILL, I'M NOT SURE WHAT WE'RE GONNA DO IN THE RETREAT NEXT WEEK IF WE'RE GONNA TALK ABOUT OUR GOALS AND WHAT WE'D LIKE TO DO.
BUT WE HAVE A LOT OF UNMET NEEDS.
UM, AND I BELIEVE, I DON'T WANT TO SPEAK TO MR. PETTY, BUT I BELIEVE YOU'RE GONNA TALK ABOUT CAPITAL NEEDS NEXT WEEK AT OUR MEETING OR THE RETREAT.
YEAH, WE WILL TOUCH ON THAT DURING SOME OF THE GOALS AND ANY FUTURE GOALS AS WELL, MR. BUT I MEAN, WE HAVE COSTS COMING AND EVERY TIME THAT WE WAIT FOR IT, AND THE WATER LINE, I WAS ON COUNCIL, MOST OF YOU WEREN'T WHEN IT WAS INITIALLY SUPPOSED TO BE DONE AT 9 MILLION, WE'RE GONNA COME IN AROUND 19 MILLION BJ.
SO WE, WE NEED TO UNDERSTAND THAT WHEN WE POSTPONE THESE THINGS, THAT THERE'S A GREATER COST TO EVERYBODY.
AND I KNOW THAT NEXT WEEK WE'RE GONNA TALK, AND I, I'D RATHER NOT HAVE THAT DISCUSSION NOW, BUT TALK ABOUT IT FRANKLY.
BUT TO SIT HERE AND SAY WE DON'T NEED A TAX INCREASE FOR FIVE YEARS AND 10 YEARS DOWN THE ROAD, SOME THINGS SHOULD BE DONE NOW, SOME THINGS WE NEED TO SAVE FOR, AND I CAN TAKE OF ONE OUT ON COMMERCE AVENUE, IT'S PROBABLY GONNA COST A WHOLE LOT OF MONEY.
AND, YOU KNOW, TRYING TO THINK FORWARD AND PLAN FOR THE FUTURE TO SAY, WELL, WE'RE NOT GONNA RAISE TAXES
[01:15:01]
AND THAT SOUNDS GREAT, BUT WHEN WE KICK A CAN DOWN THE ROAD, AND YOU, YOU GUYS HAVE SEEN IT WITH THE WATER LINE, THE COST ARE E EVERYTHING'S GOING UP.YOU KNOW, WE, WE, WE'VE GOT FOLKS, YOU KNOW, MAINTAINING THESE TRUCKS THAT A TRUCK TIRE WAS NOT TOO LONG AGO.
I, I, I THINK THAT RATHER THAN YOU RUSH INTO THIS THING AND SAY, WELL, YOU KNOW, WE'RE AT A, A BUDGET NEUTRAL POSITION.
I THINK THAT WE OUGHT TO TALK ABOUT THAT.
I HOPE THAT WE'RE GONNA TALK ABOUT IT.
COUNCILMAN RAPPAPORT AND I HAVE ONE PROJECT THAT WE WANT TO DISCUSS WITH COUNSEL, UM, ABOUT PUTTING A SIDEWALK COMPLETION PROGRAM IN PLACE, UH, AND MAKING MOBILE TRAVEL.
AND I, I GO BACK TO WHAT YOU SAID, VICE MAYOR, DURING YOUR FIRST MARRIAGE, YOUR HUSBAND WAS IN A WHEELCHAIR.
I MEAN, WE HAVE NON PASSABLE SIDEWALK WHERE WE DO HAVE SIDEWALKS.
I MEAN, YOU CAN'T PASS 'CAUSE THERE'S NO CURB CUTS AND THAT'S NONE OF THAT.
AND I, I BROUGHT THE WRONG BUDGET, BUT I APOLOGIZE.
BUT I BELIEVE BJ IN THERE, THERE WAS NO MONEY FOR CURB GUTTER ON YOUR SIDEWALK.
BELIEVE THERE IS, IS THAT CORRECT? YES, THERE IS, THERE IS MONEY INCLUDED FOR CURB SIDEWALKS.
IT IS, UH, IN CONJUNCTION WITH THE PAVING PLAN.
BUT THERE'S NOTHING IN THERE, FOR INSTANCE, TO COMPLET ANY OF THESE SIDEWALKS THAT RUN AND, AND THE STOP.
AND WE'VE GOT, I THINK MOST OF OUR MAJOR AREAS DONE.
BUT AGAIN, GOING BACK TO THE CURB CUTS, WE, WE SAW A GUY DRIVING DOWN COMMERCE THEN DOWN A SCOOTER IN FRONT OF THE FIRE HALL.
AND RIGHT BEYOND THAT, THERE'S NO CURB CUTS.
SO WHAT DO YOU THINK THE GUYS DO? I THINK A SCOOTER OUT IN COMMERCE, AND GOD FORBID, SOME PEOPLE DRIVING 40 OR 50 MILES AN HOUR.
SO TO ME, THOSE ARE THINGS THAT WE NEED TO LOOK AT.
AND THEN WE NEED TO LOOK AT THE BIGGER INFRASTRUCTURE THINGS THAT ARE COMING.
AND ALSO, YOU KNOW, IF YOU GO BACK TO THE, THE THINGS THAT BJ AND I GUESS JOE GAVE US, THE, THE THINGS OUR DEPARTMENT HEADS HAVE ADVOCATED FOR, FOR MORE OFFICERS.
UH, THE APPALACHIAN TRAIL CONNECTOR, IF I'M NOT MISTAKEN, THAT'S NOT IN THE CORRECT, CORRECT.
UH, WE GOT SOME LARGE TREE GAZEBO AND I'M NOT REALLY, I HAVEN'T COMPARED THOSE NUMBERS BACK WITH WHAT WE HAVE.
UM, SOME MACHINERY AND EQUIPMENT CAPITAL, PROBABLY $200,000.
UM, I, I THINK IT'S ONE DUMP TRUCK IS IN THERE, BUT, UM, TOWN HALL REHABILITATION, THE CARPET REPLACEMENT, I JUST THINK THERE'S THINGS IN HERE THAT WE OUGHT TO TAKE A A, A SERIOUS LOOK AT.
UM, WE HAVEN'T RAISED TAXES, AND I'M ONLY BEEN ON THE ACCOUNTS FOR TWO YEARS, BUT NOW WE HAD THE TAX DECREASE LAST YEAR.
AND, AND I GET IT, I GET IT, YOU KNOW, THE LAST FOUR YEARS.
BUT SOME OF THE PEOPLE AFFECTED ARE NOT PAYING TAXES.
I DARE SAY THAT, THAT PEOPLE THAT DON'T HAVE A CAR AND THEY HAVE NO PERSONAL PROPERTY, THEY'RE PROBABLY RENTING, BUT THEY'RE BEING IMPACTED WHEN WE DON'T HAVE A SIDEWALK AND THEY HAVE TO WALK DOWN ON THE ROAD.
OR THEY MAKE IT MORE DIFFICULT TO GET FROM POINT A TO POINT B.
SO I'M HOPING NEXT WEEK INFRASTRUCTURE, PARTICULARLY SIDEWALKS, MAYBE SOME BIKE LANES, UM, LET'S LISTEN TO OUR STAFF AND, AND SEE.
BUT I JUST WANT TO SUGGEST THAT WE NEED TO BE OPEN-MINDED.
I, AND I WANT TO SAY, 'CAUSE I FEEL LIKE IT WAS, THAT WAS, YOU KNOW, THAT WAS DIRECTED IN MY COMMENT, WHICH IS TOTALLY FINE.
I JUST WANTED TO SAY THAT I APPRECIATED THE FACT THAT STAFF PRESENTED A BUDGET TO US THAT THEY FELT LIKE THAT, THAT WE COULD DO AND WE COULD AFFORD.
AND AS I SAID THAT KNOWING THAT DIFFERENT THINGS, COSTS ARE GOING TO BE GOING UP, YOU KNOW, IT'S ALWAYS THE, THE THINGS THAT WE'VE BEEN RAISING, WATER, SEW, ELECTRICITY, ELECTRICITY, ALL I WAS SAYING.
AND I KNOW THEY'RE GOING UP AND THEY'RE GOING UP BECAUSE AS YOU SAID, EVERYTHING'S GOING UP.
I JUST MEANT THAT RECOGNIZING THAT ALL OF THOSE THINGS ARE GOING UP AND I CAN'T PREDICT WHAT OUR FRIENDS ARE GONNA DO, UM, THAT OUR TAXPAYERS ALSO, UM, ARE AFFECTED BY, BUT
[01:20:01]
IN SEEING THEIR BUDGETS AND WHAT'S BEING REQUESTED OF THEM AND AND WHO'S RELYING ON THEM.I THINK THE MAJORITY OF OUR CITIZENS, NOT THE MAJORITY, I THINK THE TOWN CITIZENS ARE GOING TO ALREADY SEE THEIR TAXES GOING UP.
AND IT MAY JUST NOT BE COMING BACK.
IT MAY NOT BE COMING TO OUR CITY, BUT IT'S GONNA BE GOING, YOU KNOW, AND AND PART OF THAT IS, AS YOU SAID, THAT'S WHAT HAPPENS WHEN YOU KICK THE CAN DOWN THE ROAD WHEN YOU DON'T FIX YOUR INFRASTRUCTURE, YOUR STOOL.
AND THE, AND THE REDUNDANT WATER LINE THAT YOU WERE REFERENCING.
WHEN I FIRST GOT ON COUNCIL, THIS WAS, THIS WAS THE PRICE THAT THEY WERE TALKING ABOUT.
AND I KNOW THAT THE COUNCIL MEMBERS I SERVED WITH AT THE TIME WERE SHOCKED BECAUSE THEY HAD BEEN TOLD A DIFFERENT PRICE, LITERALLY LIKE NOT EVEN A YEAR OR TWO BEFORE THAT.
AND AS YOU SAID, AS IT'S GONE ON, IT'S COST EVEN MORE.
THE ONE THING THAT, WHATEVER YOU WANNA CALL IT, A BLESSING OR A SILVER LINING WAS, IS THAT WE USED QUITE A BIT OF ARPA FUNDS, WHICH WERE ONE TIME FUNDS THAT WERE, I CALL YEAH.
ALTHOUGH IT, IT CAME OUTTA OUR TAXPAYER'S POCKET TOO.
UM, BUT WE WERE ABLE TO DO THAT, WHICH I, I'M TRYING TO THINK HOW MUCH OF THAT WAS IT 12 MILLION? IT WAS QUITE, I DON'T REMEMBER HOW WE SPLIT IT UP BECAUSE PART OF IT WAS WE ALLOCATED TO WATER, PART OF IT WAS TO SUE.
AND I DON'T REMEMBER OFF THE TOP OF MY HEAD.
WE DID A LOT OF I AND I WITH THAT TOO.
SO, LIKE I SAID, WE TRIED TO TAKE MONEY THAT WAS NOT EXPECTED AND THAT, THAT WE COULD USE IT FOR SOMETHING THAT WOULD IN THE FUTURE HAVE COST OUR CITIZENS MONEY.
UM, JUST OUR TOWN CITIZENS MONEY.
BUT WE USED IT FOR THAT, WHICH I'M STILL VERY GRATEFUL THAT SOMEBODY MADE THAT SUGGESTION 'CAUSE THAT WAS A GOOD IDEA.
UM, BUT ANYWAY, AS YOU SAID, WE'RE GONNA HAVE A RETREAT NEXT WEEK AND EVERYBODY CAN BRING IDEAS.
WE'VE GOT, IT'S A MONTH FROM YESTERDAY BEFORE WE'LL EVEN COME BACK AND TALK ABOUT TAX RATES AT THAT TIME.
AND WE CAN ALWAYS HAVE MORE THAN ONE DO TREAT NEXT WEEK, MAKE ANOTHER DAY AND DISCUSS IT AGAIN IF NEED BE.
BUT DOES ANYBODY HAVE ANY OTHER QUESTIONS FOR MR. WILSON? IS THERE, UM, PAGE THREE, THREE WITH LEOS MM-HMM
UH, THERE WAS NOTHING PENDING, CORRECT.
IT'S, UH, BEEN ROLLED UP INTO VRS AND WE'RE, UH, IT'S ALL ROLLED UP INTO VRS NOW, SO WE DON'T HAVE A SEPARATE LEOS LINE ITEM.
NOTHING'S CHANGED AS FAR AS BENEFITS OR ANYTHING LIKE THAT.
ANYTHING ELSE? I WILL SAY IN YEARS PRIOR, WE'VE TYPICALLY HAD RETREATS PRIOR TO THIS FAR INTO THE BUDGET SEASON.
SO WE CAN DECIDE WHAT THE DESIRE AND APPETITE OF COUNCIL IS.
AND WHILE CERTAIN DEPARTMENTS ARE MAKING SACRIFICES, I'M VERY EMPATHETIC TO THE STAFF MEMBERS THAT I'VE TALKED TO WHO LIVE HERE AND WORK HERE AND WORK FOR THE TOWN OF FRONT ROYAL AND HEAR THESE BUDGET DISCUSSIONS.
AND HERE ARE THE TAX INCREASES.
AND IT'S NOT, NOT THE DEPARTMENT THAT THEY WORK FOR, THAT THEY'RE WORRIED ABOUT THE SACRIFICES OR THE SIDEWALKS.
IT'S THEM BEING ABLE TO PAY THEIR TAXES LIVING AND OPERATING ON A CURRENT ROYAL TOWN SALARY.
SO THERE'S ALSO A FINE LINE BETWEEN DO WE FIX WHAT FORMER COUNSELS FOR SHORTSIGHTED ON FIRST IN TERMS OF INFRASTRUCTURE, OR DO WE BRING THE PAY SCALE UP TO GRADE FOR OUR EMPLOYEES TO KEEP THE TOWN RUNNING AND OFFER ALL THE SERVICES THAT WE PROVIDE? BECAUSE WE HEARD IT TONIGHT FROM TWO OF OUR CONSULTANTS, HOW MUCH THEY LOVE AND ADMIRE FOR ROYAL.
BUT THE FACT OF THE MATTER IS, A LOT OF OUR STAFF ARE HERE FOR DECADES AT A TIME.
EVEN SOME OF 'EM ARE GENERATIONAL BECAUSE THEY LOVE THE TOWN OF PEARL ROYAL AND THEY ENJOY WORKING FOR IT OR WHAT THEY DO, OR THE DEPARTMENT THAT THEY'RE DEDICATED TO.
AND SO TO KNOW THAT THEY'RE BEING SEVERELY UNDERPAID TO CONTINUE WORKING FOR A PLACE THAT THEY ENJOY WORKING OR DOING WHAT THEY ENJOY DOING, IT'S A FINE LINE.
WHERE DO WE START? DO WE PAY THEM WHAT THEY DESERVE FIRST OR DO WE PUT A SIDEWALK IN FIRST? AND AS MUCH AS I WANT SIDEWALKS, AND IT'S BEEN A PERSONAL THING OF MINE SINCE BEFORE I CAME ON COUNCIL, IT'S, IT'S A FINE LINE.
SO IF THIS COUNCIL HAS A DESIRE TO INCREASE THE TAXES AND THERE'S A PERCENTAGE OR A NUMBER IN MIND TO BRING THE BUDGET TO WHERE THEY WANT TO DO IT, WE CAN HAVE THAT DISCUSSION.
BUT THAT'S WHAT'S NICE OR NOT NEXT MONDAY.
WELL, WE DO HAVE, WE DO HAVE A MEALS IN MOTION, WHICH WE'VE DISCUSSED IN PREVIOUS, UM, RETREATS, YOU KNOW, AND WITH BUDGET NUMBERS AND WITH, WITH THE, UH, FUNDING FROM BI, YOU KNOW, THE
SO THAT'S, THAT'S IN THE WORKS, YOU KNOW, AND I THINK THAT BUDGET YEAH.
WHAT I'M SAYING, BUT THAT'S, BUT THAT'S, IF THIS COUNCIL CAN GET THAT PUSHED THROUGH, I MEAN, THAT'S A HUGE ME.
I MEAN, THAT'S, THAT'S A, THAT'S A PRETTY, THAT'S A PRETTY I
[01:25:01]
KNOW, BUT I MEAN, FOR PUTTING THAT IN MOTION THOUGH, THAT'S, THAT WAS A SUBSTANTIAL EFFORT.I DON'T UNDERSTAND HOW THE COUNTY AND SCHOOLS BUILT SCHOOLS YEAH.
WHERE THEY HAD TO CORRESPOND WITH COMMUNICATION AND TRANSPORTATION.
I HAD A MEETING WITH THE SUPERINTENDENT LAST WEEK, THEIR $10 MILLION IN A DEFICIT FOR THEIR BUDGET MM-HMM
AND THE NUMBER ONE THING WHEN I ASKED, WHAT DO YOU NEED AT THE SCHOOLS? WHAT, WHAT CAN PEOPLE DO? TRANSPORTATION IS THE NUMBER ONE ISSUE IN DEFICIT IN THE SCHOOL BUDGET RIGHT NOW.
SO HOW WE CONSTRUCTED THESE MULTI-MILLION DOLLAR SCHOOLS TO GO FROM ONE HIGH SCHOOL TO TWO HIGH SCHOOLS, WHEN, ANYWAYS, WE CAN TALK ABOUT ALL THAT WAS DONE WRONG SO LONG.
BUT AGAIN, IT'S A BURDEN THAT'S FALLEN ON OUR CITIZENS AND OUR YOUTH IN THIS COMMUNITY THAT IT'S NOW THE KIND COUNCIL'S JOB TO FIT.
WELL, IT MEANS FOR SOME OF THIS MORE SUBSTANTIAL EFFORTS, YOU KNOW, LIKE SIDEWALKS, MY TAKE IS I, I'M, I'M WHAT I AGREE.
I MEAN, WALKING, JUST WALKING DOWN HERE FROM MY HOUSE, YOU KNOW, AS I SEE THE CONDITIONS, SOME OF THOSE SIDEWALKS ON IT, I BUT IT ENDS ABRUPTLY BEFORE YOU GET TO YOURS.
RIGHT? WELL, MY HOUSE, WELL, AS A MATTER OF FACT, I WAS TALKING TO MY NEIGHBOR TODAY.
WE WERE TALKING ABOUT, UH, HOW THANKFUL HE WAS ON THIS RECENT, UM, RECENT, UH, MOTION THAT WE, WE APPROVED ABOUT THE NEW DEVELOPMENT HERE, ABOUT THE SIDEWALKS FOR THAT.
AND I SAID, WELL, LOOK AT MY HOUSE RIGHT HERE.
AND I TOLD HIM, I, I EXPLAINED TO HIM MY RECORD ON WHY I VOTED FOR WAIVERS FOR WHEN A NEW HOUSE IS BUILT.
YOU KNOW, I'VE, I'VE ALWAYS VOTED IN FAVOR OF ALLOWING WAIVER TO PASS FOR THEM TO PUT A SIDEWALK AND GUTTER THERE BECAUSE IT CREATES AN AR EROSION ISSUE FOR PEOPLE DOWNSTREAM FROM IT.
YOU KNOW, THAT'S SOMEBODY THAT, THAT'S DONE EROSION CONTROL WORK.
I CAN TELL YOU THAT RIGHT NOW.
AND I SAID, LOOK AT MY, LOOK AT MY HOUSE AND MY NEIGHBOR'S HOUSE.
THAT'S AN EXAMPLE OF WHAT NOT TO DO.
NOW, THESE PEOPLE WERE THINKING THIS 50, 60 YEARS AGO, THEY DIDN'T THINK OF IT THIS WAY TODAY.
THERE'S NO WAY IN THE WORLD YOU'D BE ABLE TO DO THAT TODAY.
BUT, AND THAT'S SOMETHING WE CAN TALK ABOUT TOO.
YOU KNOW, MAYBE, I KNOW WE'VE, WE'VE MENTIONED IT IN THE PAST, YOU KNOW, ABOUT, YOU KNOW, FOR A NEW HOUSE BEING BUILT, WE SET ASIDE SOME FUNDS.
I KNOW IT'S LIKE WE, YOU HAD TALKED ABOUT IT YOURSELF, DJJ, YOU KNOW, ABOUT HOW IT'S A CRAPSHOOT.
LIKE YEAH, WE CAN PUT SET ASIDE FUNDS FOR THEM TO PUT IT IN THE FUTURE, YOU KNOW, WHENEVER THERE'S INFRASTRUCTURE GOING BESIDE IT, HOW DO WE PICK THAT NUMBER? WHO KNOWS? IT COULD BE A, A, YOU KNOW, PUT UP A BOND THAT SAYS, HEY, YOU KNOW, WE'RE GONNA PUT IT IN THIS ACCOUNT.
MAYBE WE TAKE IT, PUT IT IN ACCOUNT, AND IT HOPEFULLY IT GROWS, YOU KNOW, FOR THE COST.
BUT THERE'S, THERE'S WAYS WE CAN MITIGATE THIS IN SITUATIONS LIKE THAT.
AND THAT'S SOMETHING THAT WE COULD TALK ABOUT, YOU KNOW, MAYBE IN OUR RETREAT, BUT I DON'T WANNA GO ON A RABBIT HOLE ON IT, BUT YEAH.
YOU KNOW, BUT THERE ARE THINGS THAT WE'RE GONNA HAVE TO LOOK AT, NOT JUST WITHIN OUR TERMS, BUT 15 YEAR, EVEN 20 YEARS PROBABLY DOWN THE ROAD FOR SOLUTIONS, YOU KNOW? SO, AND I DO BELIEVE THAT STAFF IN LOOKING AT THE BUDGET DID LOOK AT OUR GOALS, YOU KNOW, AND FROM LAST YEAR, SO THAT, UM, AND GRANTED THEY WERE LAST YEAR'S, BUT IF YOU REMEMBER LAST YEAR WHEN WE WERE DOING THAT, WE, WE RECOGNIZE THAT SOME OF THEM WERE NOT SHORT TERM GOALS.
AND SO, UM, BUT I MEAN, AND ULTIMATELY, LET'S BE HONEST, WE NEED ECONOMIC DEVELOPMENT.
I MEAN, WE, WE, IT'S NOT THE, IT'S NOT THE CITIZEN BURDEN TO BEAR BUSINESSES AND TAX REVENUE SHOULD BE FUNDING THESE PROJECTS IN OUR TOWN.
UM, I THINK WE HAD A CALL WITH RETAIL STRATEGIES TODAY.
THE MARKET IS VERY PROMISING RIGHT NOW.
THERE'S SOME BOOMING POPULATION, NOT JUST FOR HOUSING, BUT COMMERCIAL.
BUT THE FACT OF THE MATTER IS, EVEN A FEW COMMERCIAL CHAINS ARE NOT GONNA FIX THIS PROBLEM.
WE NEED SOMETHING THAT'S GONNA PROVIDE JOBS.
WE NEED SOMETHING THAT'S GONNA PROVIDE TAX REVENUE, AND WE NEED TO HAVE APPROPRIATELY USED OUR DESIGNATED ZONINGS FOR WHAT THEY ARE.
WE HAVE AN ENTIRE INDUSTRIAL ZONE PORTION OF OUR TOWN THAT HAS BEEN USED FOR PRIVATE EDUCATION, THE HUMANE SOCIETY, ALL THESE OTHER THINGS THAT MAKE YOU FEEL WARM AND BUZZY, BUT THEY, THEY WERE NOT CONTRIBUTING TO THE ECONOMIC DEVELOPMENT OF HER OIL.
WELL, YOU AND I HAVE BEEN TOLD THAT BY THE STATE MULTIPLE TIMES, EVEN FOR THE STATE HAS SAID, YOU LOOK AT A MAP OF HOW AND WHERE INDUSTRIAL IS, AND IT'S NOT USED FOR THAT.
WE DON'T HAVE MANUFACTURERS, WE DON'T HAVE WAREHOUSES.
AND SO WE WERE GOING TO LOOK AT HOW TO INCREASE THE TAX REVENUE WITHOUT BURDENING THE PEOPLE THAT LIVE HERE AND CAUSING GENTRIFICATION.
IF WE'RE BEING HONEST, THEN WE NEED TO ADDRESS THE BIGGER, BROADER ISSUE.
THAT'S A LONG TERM FIX FOR THE, AND FOR EVERY COUNCIL IN THE FUTURE.
ARE THERE ANY OTHER QUESTIONS FOR MR. WILSON OR ANY OTHER PART OF THIS? I KEEP SEEING THE WORD DISCUSSION, BUT THAT'S THE OTHER DISCUSSION, BUT OTHER
[01:30:01]
MONEY THAT WE GOT FOR OUR FUNDS.UH, THAT'S NOT HOW WE WANT TO DO IT.
TO HAVE A PANDEMIC IN ORDER, IN ORDER TO OBTAIN ARPA FUNDS IN ORDER TO, TO PAY FOR A WATER.
THAT'S WHY I SAID IT WAS LIKE A LOTTERY.
IT WAS LIKE A ONE TIME PURCHASE.
I THINK THE GOAL IS, IS, IS, YOU KNOW, WE WANT TO GET OUT IN FRONT OF IT IN ORDER TO FIND OUT, TO FIGURE OUT HOW, HOW WE CAN BRING IN QUOTE UNQUOTE ECONOMIC DEVELOPMENT.
HOW, HOW DO WE ATTRACT, UH, EMPLOYERS TO COME IN THAT ARE GOING TO BRING IN, WHETHER IT BE SOME SORT OF MANUFACTURING, WHETHER IT BE LIGHT MANUFACTURING OR MANY LAND MANUFACTURERS, MAYBE MEDICAL, YOU KNOW, SOMETHING ALONG THOSE LINES THAT EMPLOYED PEOPLE.
AND IT TAKES THE BURDEN OFF THE TAXPAYER.
SO, YOU KNOW, IT'S NOTHING NEW.
THAT'S WHAT EVERY COMMUNITY WANTS.
IT'S JUST WE HAVEN'T BEEN SUCCESSFUL WITH IT.
BUT THAT DOESN'T MEAN THAT WE CAN'T BE, IF, IF WE CREATE CERTAIN OVERLAY DISTRICTS THAT, UH, ALLOW FOR THAT TYPE OF DEVELOPMENT AND UTILIZE THE EXISTING ONES FOR THE APPROPRIATE USE.
WHICH WE DISCUSS ZONING AND RESIDENTIAL AREAS A LOT, BUT YOU LOOK AT THE COMMERCIAL AND INDUSTRIAL ONE TIME, IT DOES NOT MAKE SENSE WHERE THEY'RE AT, HOW THEY'RE UTILIZED, WHAT'S CURRENTLY THERE.
AND I HATE TO BEAT A DEAD HORSE, BUT THE EDA SCANDAL OF THIS COMMUNITY FACED, WE HAVE NOT YET RECOVERED FROM.
YOU LOOK TO FREDERICK COUNTY AND THEY'VE GOT THE FBI, THEY'VE GOT FEMA, THEY'VE GOT THE ARMY CORPS OF ENGINEER, THEY'VE GOT MANUFACTURERS, THEY'VE GOT WAREHOUSES, THEY'VE GOT VIRGINIA HOUSING COMING IN AND CONVERTING THE OLD PLANT OVER THERE INTO TRANSITIONAL HOUSING.
IT'S NOT JUST ON THE BACKS OF THIS COUNCIL AND FUTURE COUNCILS TO FIGURE OUT.
EACH OF US NEED TO BE CALLING OUR CONGRESSMEN AND OUR DELEGATES, BUT PRIMARILY OUR CONGRESSMEN AND ASKING WHAT THEY'RE DOING TO HELP FROM THE DISREPAIR.
WE'VE NEVER BEEN ECONOMICALLY BLESSED SINCE AVTEC CLOSED.
HONESTLY, IT DEVASTATED THIS COMMUNITY AND WE'VE NEVER RECOVERED SINCE, AND I'M SORRY, BUT THERE WERE A LOT OF FEDERAL AGENCIES WHO HAD A HAND IN THAT DETRIMENT.
AND I THINK THAT THEY OWE IT TO US TO COME IN AND STEP IN AND HELP US REVITALIZE THAT DIDN'T ACTUALLY DOES STAY THE WHOLE NORTH, NORTH END OF THE VALLEY.
AND FOR THAT REASON, CONGRESS NEEDS TO WORK WITH THE EPA AND DEQ AND, AND THEY NEED TO PROMOTE THE REVITALIZATION FRONT.
ROYAL, I DO APPRECIATE, UM, BJ THE, UH, THE, UH, THE HELP THAT THE CONSULTANT GAVE US ON THE ELECTRIC FUND REGARDING, UH, THE ENABLE TO PHASE IN THE, UM, THE INCREASE, RECOVER THE REVENUE TO PAY FOR THE, UM, THE, THE INCREASED COST OF THE ELECTRIC THAT'S COMING, MS. YES.
SO THANK YOU FOR THAT, MR. WILSON.
AMENDMENT FEES AND CHAPTER 1 34, WATER AND SEWER RETAINS THE S PLACE AND WATER AND SEWER SERVICE RATES.
SO, UH, BRINGING THIS BEFORE COUNSEL NOW, UH, CASE WE GONNA GET AN MEETING JUST TO DISCUSS THE SWORN COUNTY.
UM, BUT THE, UM, THIS IS A RESULT OF STANTEC, UH, CONSULTING GREAT STUDY THAT THEY PERFORMED FOR US LAST YEAR.
UH, THIS WOULD BE THE, UM, INCREASED WATER RATES, UH, TWO AND A QUARTER PERCENT INCREASED SEWER RATES, UH, 3%.
THIS WOULD BE EFFECTIVE JULY 1ST AS BEEN INCORPORATED.
THOSE, THIS WILL BE YOUR 27 BUDGET, UH, WOULD EQUATE TO, UH, AN INCREASE FOR AVERAGE HOUSEHOLD USING 5,500 GALLONS OF, UH, $2 AND 34 CENTS, UH, PER MONTH.
AND, UH, ATTACHED TO ALL THE ORDINANCES AND, UH, WHAT HAVE YOU TO GO ALONG WITH IT, UH, THIS WOULD ALSO INCREASE THE SEPTIC CALL RATE TO, FOR WARREN COUNTY.
I'M HAPPY TO ANSWER ANY QUESTIONS ON THIS AS WELL.
WHEN YOU BROUGHT UP LIAISON, YOU MEAN US JUST REMINDING THEM THAT THIS IS GONNA HAPPEN ON JULY LINE? YEAH, WE, WE DID DISCUSS IT LAST YEAR.
UH, WE GAVE EVERYTHING TO WARREN COUNTY, LET THEM KNOW THIS WAS COMING.
UH, BUT IF WE WANTED TO JUST BRING IT UP TO, TO AS A REMINDER, UM, OR LIKELY JUST REACH OUT TO STAFF AND LET THEM KNOW, WE CAN CERTAINLY DO THAT AS WELL.
CAN YOU ADD THAT TO OUR LIAISON? LIKE JUST, EVEN IF IT'S JUST A LITTLE QUICK, LIKE JUST A REMINDER AND IT'S ALL
[01:35:01]
WE COULD, WE COULD ADDED AS AN ITEM FROM THE TOWN.AND I DO THINK KEEPING THAT OPEN LINES OF COMMUNICATION, NOBODY GETS SURPRISED.
UM, BUT THIS WOULD, UH, COME BACK FOR, UH, PUBLIC HEARING, UM, AS WELL.
WHEN DO YOU WANT THIS PUBLIC HEARING? UM, WE HAVE IT ON THE CALENDAR.
IT HAVE TO BE APRIL, RIGHT? UM, IT'LL BE APRIL.
I HAVE ONE QUESTION ON THE, UH, PUBLIC WORKS FEES.
UM, AND WHAT THAT IS, IS THIS IS THE, THE 29 94 IS ACTUALLY THE RATE, UH, PER 1000 GALLONS.
THE 58 55, I BELIEVE IS WHAT WARREN COUNTY WAS CHARGING TO THE HAULERS WHEN THEY ADDED THEIR FEE ON, BUT THE, YEAH, THE 29 94 ISN'T INDEED CORRECT.
AND THAT'S THE NEW FEE BECAUSE IT, IT, IT WENT UP SOMETHING I REMEMBER IN THAT DISCUSSION.
WE HADN'T CHANGED THAT IN YES.
IN THE NUMBER OF YEARS AND WHAT IT WAS, WE WERE DOING $25 PER $1,000, UH, PER, PER 1000 GALLON, SORRY.
$25 PER THOUSAND GALLON GOING UP LESS THAN FIVE BUCKS.
BJ, YOU GOT THE UTILITY RATE FROM MAY 26TH.
DO YOU WANNA MOVE IT UP? UM, WE CAN, UM, UM, I'M FINE WITH MAY 26TH.
I BELIEVE THAT'S WHAT WE HAD ON THE BUDGET CALENDAR, BRINGING ANY CASE WE WANNA DISCUSS WITH THE LIAISON MEETING.
UH, BUT WE CAN DO APRIL OR MAY.
UM, IT'S GONNA BE EFFECTIVE JULY 1ST.
AS, AS THE GOAL, AS THE END GOAL, UH, WHATEVER COUNCIL'S PREFERENCE IS.
IF WE'RE AT, WELL, I DON'T KNOW.
WE, WE DON'T KNOW HOW MANY PUBLIC HEARINGS WE'LL HAVE ON APRIL 23RD, BUT I MEAN, AT THIS POINT WE DON'T KNOW OF ANY, BUT WE WON'T KNOW UNTIL YOU DON'T HAVE SEVEN.
YOU DON'T HAVE SEVEN, WHICH IS WHAT WE HAVE THIS YOU DON'T HAVE SEVEN.
I SAY PUT IT ON IN APRIL, THEN, YOU KNOW, MAYBE MAY.
THE ORDINANCE NEEDS A LITTLE CORRECTION, I THINK UNLESS DATED MARCH 10TH, 2025 MAYBE.
MAYBE THAT'S WHEN THE COUNT CONSULTANTS.
YEAH, THAT'S WHEN THE, THAT'S WHEN THE CONSULTANTS, UH, FIRST PROPOSED THE, UM, UH, THE RATE STUDY.
SO TO BE DETERMINED, UM, FY 26 BUDGET AMENDMENT FOR TRAFFIC ACCIDENT REIMBURSES ALSO TO MR. WILSON.
SO THIS ONE IS, UH, THE, UH, EXACTLY THAT A BUDGET AMENDMENT TO, UH, FOR THE TOWN TO RECEIVE $268,731 94 CENTS, UH, FROM INSURANCE FUND.
I DO A TRAFFIC ACCIDENT THAT OCCURRED ON, UH, COMMERCE AVENUE THERE, UH, ONE DECEMBER 31ST, 2025.
UM, ONE BRINGING THOSE FUNDS TO OFFSET THE EXPENDITURES THAT THE TOWN WILL INCUR.
THAT WAS A LOT OF MONEY FOR AN ACCIDENT.
INSURANCE COMPANIES PROBABLY CANCELING SOMEBODY'S INSURANCE, DON'T HIT A TRAFFIC SIGNAL.
WELL, I WAS JUST GONNA ASK, WAS THAT ENOUGH TO COVER THE COST OF THE TOWN CURB MM-HMM
TO OFFSET THIS? PROBABLY 90% OF IT.
WE DON'T KNOW WHAT, THAT'S EVERYTHING WE COULD BUDGET FOR AND WE KNOW.
SO YES, WE'RE GONNA SAY 90% OF IT'S PROBABLY COVERED.
DID YOU HAVE TO GET A BOX TOO? NO, SIR.
IT WAS JUST THE POLE AND EVERYTHING.
EVEN LIKE, EVEN THE MAN HOURS THAT WENT INTO THAT.
I MEAN, THERE WERE PEOPLE OUT THERE DIRECTING TRAFFIC AND WORKING.
WE, WE WERE ABLE TO RECOUP ALL THAT.
YEAH, NO, I REMEMBER WE GOT A BREAKDOWN.
SO I'M GONNA SAY THAT COULD BE ON THE CONSENT IN MARCH.
UM, FIVE C, THE BUDGET AMENDMENT TRANSFER AND TASK ORDER FOR THE WASTEWATER TREATMENT PLANT DEWATERING PROJECT CENTRIFUGE, MR. ROSE.
SO THIS IS THE, UH, CENTRIFUGE PROJECT, AND MAY HAVE REMEMBERED LAST WEEK WHEN WE WAS DISCUSSING THE BUDGET.
UH, I'LL BE COMING BACK TO DISCUSS THIS IN MORE DETAIL.
SO THAT'S WHAT WE'RE HERE TO DO TONIGHT.
UH, WHAT'S PRESENTED TO COUNSEL IS AN $897,000 TASK ORDER FOR CHA CONSULTING, UH, TO, UH, PERFORM FINAL OR FINAL ENGINEERING SERVICES FOR US ON THE PROJECT.
UM, AND WHAT WE'RE ASKING FOR HERE IS TO, UM, UH, USE PART OF THE CARRYOVER FUNDS THAT WE HAVE FOR THE INI ABATEMENT, UM, AND THE AMOUNT OF, WHAT WAS THAT? UH, $350,000, UH, WHAT THOSE FUNDS ARE FROM, UH, FROM WHEN WE ORIGINALLY, UH, ISSUED THE PROCUREMENT FOR THE INI ABATEMENT.
SO WE HAD SOME CONTINGENCY BUILT IN THERE, AND THAT'S WHAT THIS IS.
WE CARRIED THAT FORWARD WITH THE CARRY OVER PURCHASE ORDERS.
MOVING FORWARD, WE STILL WILL HAVE SOME, UH, FUNDS LEFT OVER FOR THE I I ABATEMENT, UH, FUNDS FOR PROJECTS THAT ARE COMING DOWN THE PIPE, UH, WHICH WE'LL PROBABLY BE DISCUSSING MAYBE NEXT MONTH.
UM, BUT, UM, I WANNA USE $350,000 OF THAT
[01:40:01]
AND THEN $547,000 OUT OF RESERVE FUNDS, UH, TO, UH, MOVE THIS PROJECT FORWARD, UH, IN MOVE IN MOVING THIS PROJECT FORWARD.UH, WE'RE REQUIRED TO CLOSE ON THE, ON THE FINANCING BY NOVEMBER OF 2026.
UH, THAT IS KIND OF THE KEY DATE.
UM, NOVEMBER, 2026 WOULD GET US THAT LOW INTEREST RATE THAT WE DISCUSSED LAST TIME, UH, FROM THE EQ THAT WE APPROVED FOR.
UH, THERE ARE A LOT OF THINGS THAT NEED TO FALL IN LINE AND HAPPEN.
THIS IS A VERY TIGHT SCHEDULE.
UM, IF WE WERE TO MISS THAT DATE, WE COULD SEEK ALTERNATIVE FINANCING OR, UM, REAPPLY FOR THE SAME PROGRAM.
UM, SO THERE IS A CHANCE THAT, UH, IF WE WANT TO, WE PUT THE, UH, RE UH, WE COULD BE REFUNDED, I GUESS, IN THE FINANCING FOR THE PROJECT, UH, THROUGH DEQ.
UM, BUT, UH, WE'RE NOT REQUIRED TO DO THAT.
UH, EITHER WAY, THE WAY I'M LOOKING AT THIS IS THIS IS A PROJECT THAT WE SHOULD BE MOVING FORWARD.
UH, THE CENTRIFUGE WILL ULTIMATELY SAVE THE TOWN MONEY, UH, ONCE IT'S COMPLETED.
UM, SO EITHER WAY, I MEAN, I DO FEEL THAT THIS IS JUSTIFIED.
THERE IS ADEQUATE FUNDS IN RESERVE TO COVER, UH, THE $547,000, EVEN IF WE DON'T, UH, SEEK REFUND OR REFUNDING THROUGH THE FINANCING OF IT.
UM, AS OF JUNE 30TH, 2025, THERE WAS $5.2 MILLION IN SEWER FUND RESERVES ABOVE AND BEYOND THE THREE MONTHS, UH, THAT OUR FISCAL POLICY REQUIRES.
UM, I JUST A LOT THERE HAS TO ANSWER ANY QUESTIONS.
UM, UNLESS ANYBODY'S AGAINST THAT, I WOULD SAY DEFINITELY ADD THAT TO THE MARCH 23RD AND IT COULD BE ON A CONSENT BECAUSE IT DOESN'T SOUND LIKE ANYBODY HAS ANY.
UM, AND THEN LAST BUT NOT LEAST IS A BUDGET AMENDMENT TO RECEIVE VERSA, UH, VERSA.
PERMIT WILSON, THAT'S ALSO YOU.
WELL, THIS ONE KIND OF IS LEAST FOR THAN THAT RIGHT?
THE, UH, SO NO, THIS ONE IS, UM, UH, VERSA.
WE WERE, UH, WERE APPROVED FOR A VERSA GRANT, THE AMOUNT OF $4,925.
UM, THOSE FUNDS WERE USED, UH, TO PURCHASE A NEW, UH, TRIPOD KIT FOR CONFINED SPACES FOR THE WATER SEW SUPPLY MAINTENANCE CREW.
UH, WE'VE ALREADY MADE THE PURCHASE.
UH, THIS IS JUST ACTUALLY SEEKING THE REIMBURSEMENT AND TO ALLOW US TO BRING THOSE FUNDS IN, COVER THE DIS EXPENSE.
SO THE FIRST ONE WOULD BE, WE GOTTA DO A PUBLIC HEARING, BUT THE OTHERS CAN ALL BE ON CONSENT.
LAST BUT NOT LEAST FOR NEW BUSINESS, IS MS. PRESLEY'S GONNA TALK ABOUT THE ORDINANCE, AMENDMENT TO VARIOUS AND CJ, UM, OR JUST WANT ME STAY HERE OR DO I NEED TO GO? OH, I THINK YOU SHOULD COME.
ALL THE WAY ACROSS THE ROOM FROM US.
UM, MYSELF, MR. SONNET, MR. PETTY LOOKED OVER THIS ORDINANCE TO DO THESE REVISIONS.
THIS CAME ABOUT WHEN WE FOUND OUT THAT IN THE TOWN CODE, WE HAD NO FLEXIBILITY ON LOCATION.
THIS CAME ABOUT IN DECEMBER WHEN WE TRIED TO DO THE REGULAR MEETING.
'CAUSE IT WAS VERY SHORT IN TOWN HALL.
AND WE ENDED UP, BASED ON THE CODE, WE HAD TO DO IT AT THE GOVERNMENT CENTER.
IT ALSO CAME ABOUT WHEN WE FOUND OUT, WHEN YOU DID YOUR RESOLUTION IN JANUARY TO LIST ALL OF YOUR REGULAR MEETINGS, FOUND THAT IN THE STATE CODE YOU WEREN'T DOING THAT EITHER.
SO THIS, THIS FIXES ALL THAT IS WHAT REALLY THIS DOES FOR CHAPTER, UM, 4 4 1, THE MEETINGS.
AND THAT WILL HAVE TO HAVE A PUBLIC HEARING, RIGHT? CORRECT.
AND ALSO AS PART OF THIS SECTION, FOUR DASH FIVE WAS OUTDATED, UM, MR. SAUNA FOUND OUT WE HAVE IT IN THE CHARTER.
UM, TOWN CODE ALSO, I ADDED TRAINING.
AND PUBLIC RECORDS HAS SO OUTDATED.
I DON'T, IT WAS PUT IN THE CODE IN 1990.
IT'S NOW THE, UM, VIRGINIA PUBLIC RECORDS ACT AND DESIGNATION OF A RECORDS OFFICER AND FOIA OFFICER.
WE DIDN'T HAVE THOSE IN THE CODE EITHER, EVEN THOUGH WE HAVE HAD FOIA.
WELL, YOU HAD 'EM, BUT, UM, THERE IS A REQUIREMENT THEY'RE SUPPOSED TO HAVE OF THESE OFFICERS.
UM, WE DO HAVE WHERE THE TOWN MANAGER IS DESIGNATING THOSE TWO PEOPLE.
THE COUNCIL DOESN'T DO THAT UNLESS YOU WANT TO.
[01:45:01]
SO THAT'S PRETTY, THAT'S PRETTY MUCH THE JUST OF REVISIONS.DID I COVER EVERYTHING? MY, MY ONLY POINT IS THAT SOME OF THIS ISN'T REQUIRED BY LAW TO BE IN TOWN CODE, BUT IT RAISES AWARENESS.
NOW THE FLIP SIDE OF THAT IS WHEN STATE LAW CHANGES THAT YOU'VE GOTTA MAKE SURE YOU STAY ON TOP OF IT.
WELL, ONE, ONE THING I COULD SAY ABOUT THAT IS WHEN WE WERE TRYING TO CANCEL AND RESCHEDULE A REGULAR MEETING, WE NEVER REALLY HAD TO DO THAT BEFORE.
SO WE HAD TO RESEARCH IT TO FIGURE OUT HOW TO DO THAT AND HOW TO RESCHEDULE THE PUBLIC HEARINGS IF WE HAD TO.
NOW YOU CAN GO TO YOUR CODE AND YOUR REFERENCE NUMBERS ARE THERE IF THAT HAPPENS AGAIN.
SO THAT'S, I THINK WHAT YOU'RE TRYING TO SAY.
WE DON'T HAVE TO HAVE IT IN HERE, BUT IT MAKES LIFE EASIER WHEN IT HAPPENS, WHEN IT HAPPENS AGAIN.
IN THE FUTURE, WHOEVER'S SITTING AT THIS TABLE OR IN THAT OFFICE KNOWS WHAT TO DO.
ANY OTHER QUESTIONS? THIS WOULD BE, IT REQUIRES OF A HEARING.
SO THE EARLIEST WE'D BE ABLE TO ASSIST APRIL 27TH.
MARCH 23RD IS THE ONES FOR THIS.
I KNOW I KEEP GETTING MY 26TH AND THE 27TH, 26TH AND 23RD ABOUT ANOTHER READING.
UH, ON THE RESOLUTION OF THE, UH, COUNCIL MEETINGS.
DID WE CONFIRM THE COUNTY WE'RE MEETING AT THE COUNTY WHEN WE MOVED? THE, UM, MAY, WELL TWO, MAY 26TH DUE TO THE, UH, HOLIDAY MONDAY.
WE, I ALWAYS CONFIRM WITH THE COUNTY AND WE'VE NEVER HAD A PROBLEM EVER SINCE WE'VE BEEN THERE.
THEY KNOW WE HAD THAT TUESDAY.
AND THAT'S ACTUALLY IN STATE CODE, THE HOLIDAY.
YOU HAVE TO HAVE IT THE NEXT DAY.
WHERE IS THE DESIGNATION? 4 44 47 IS THE TITLE.
THAT'S THE END OF NEW BUSINESS.
AND NEXT UP IS CLOSED MEETING.
MAD MAYOR, THE TOWN COUNCIL CAN PRESENT AN ENCLOSED MEETING PURSUANT TO SECTION TWO VIRGINIA FOR PURSUANT TO SECTION RETAINED BY A PUBLIC BODY REGARDING SPECIFIC LEGAL MATTERS REQUIRING LEGAL ADVICE, SUBSTANTIAL OR SPECIFICALLY A, THE AGREEMENT VOLUNTARY SCHEDULE BETWEEN COUNTY WARREN, VIRGINIA AND THE TOWN OF FRONT ORAL VIRGINIA REGARDING THE COMPROMISE FOR PILOT MEALS AND LODGE TAXES ENTERED INTO APRIL, 2018.
AND B, SETTLEMENT AGREEMENT BETWEEN THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE TOWN OF