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HomeMy WebLinkAboutAgenda_GTEU_03.24.2022Notice of Meeting for the Georgetown Electric Utility B oard of the City of Georgetown March 24, 2022 at 4:00 P M at Community Room at Georgetown City Hall, 808 Martin Luther K ing Jr. St., Georgetown T X 78626 T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. The Geor getown E le ctr ic U tility A dvisory B oard is now me eting in per son. A quor um of the B oard will be in attendance at the C ommunity Room at Geor getown City H all, 808 M artin L uther K ing J r. S t., Ge orge town TX 78626. It is possible that one or mor e board me mber s may attend via video Confe re nc e using the Zoom clie nt. Regular Session (T his R egular S es s ion may, at any time, be rec es s ed to c onvene an Exec utive S es s ion for any purpose authorized by the O pen Meetings Act, Texas G overnment C ode 551.) A C all to O rder- R obert C as e; Board C harman B R eview and Approval of Minutes from 02/17/2022 Meeting- Kres s C arson; Board Liais on C Nomination and elec tion of Vic e-C hair and S ecretary - R obert C ase, C hair D R oll C all of Board Members- R obert C as e; Board C hairman E Introduc tion of Visitors - R obert C ase; Board C hairman F P ublic Wis hing to Address the Board- R ober C as e; Board C hairman G G eneral Manager's Monthly R eport- Daniel Bethapudi; G eneral Manager of Electric Utility H C ons ideration and possible recommendation to renew an annual agreement between the C ity of G eorgetown and C redit S ys tems International, Inc as the 3rd party c ollection agency for Utility C ustomer delinquent acc ounts in an annual not to exceed amount of $100,000.00 and to authorize the C ity Manager to execute renewals of the agreement for up to two additional one-year terms with the s ame terms and c onditions for a total not to exc eed amount of $300,000- Letica Zavala, C us tomer C are Direc tor I C ons ideration and possible recommendation to c ontinue utilizing the Elec tric Jus t-In Time S upplier Agreement with Techline for F isc al Year 2022 and update the contrac ted amount not to exceed $10,000,000- Mike Westbrook, Elec tric O perations Manager E xecutiv e Session Page 1 of 61 In c omplianc e with the O pen Meetings Ac t, C hapter 551, G overnment C ode, Vernon's Texas C odes, Annotated, the items listed below will be dis cus s ed in c los ed session and are s ubjec t to action in the regular s es s ion. J S ec . 551.086 C ompetitive Matters P urchas ed P ower R eview Adjournment Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2022, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 2 of 61 City of Georgetown, Texas Electric Utility Board March 24, 2022 S UB J E C T: R eview and Approval of Minutes from 02/17/2022 Meeting- Kress C ars on; Board Liaison IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Kres s C arson- Board Liaison AT TAC H ME N T S: Description Type Draft Minutes - 02-17 Cover Memo Page 3 of 61 Minutes of the Meeting for the Georgetown Electric Utility Board Thursday, February 17th at 4:00 PM at the Friends Room at Georgetown Public Library, 402 W. 8th St. Georgetown, TX 78626 Board Members Present: Robert Case - Chairman, Rick Woodruff- Vice-Chairman, Sam Jones- Secretary, Ben Butler Board Members Absent: Mike Triggs Staff Present: Daniel Bethapudi, Daniel Potter, Daniel McReynolds, Mike Westbrook, Cindy Pospisil, Kress Carson, Jennifer Flor, Jose Torres, and Richard Pajestka Public Attendees: None Regular Session (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. Call to Order -- Robert Case, Board Chairman • Meeting called to order at 4:00 pm by Case. B. Roll Call of Board Members -- Robert Case, Board Chairman. • Triggs absent C. Introduction of Visitors -- Robert Case, Board Chairman D. Public Wishing to Address the Board • None present Legislative Session E. Review and Approval of Minutes- Kress Carson, Board Liaison • January 26th Meeting- Motion to approve by Jones; seconded by Butler • Minutes approved as read 4-1 (Triggs absent) Page 4 of 61 Regular Session (cont.) F. General Managers Monthly Report- Daniel Bethapudi- General Manager of Electric Utility • Customer Service and Billing- Cindy Pospisil-Customer Care ERP Applications Administrator o 30,922 Available Services o 30,009 Electric customers/accounts, 188 estimated “bad meter reads” o 30,326 Billed Electric Meters o Overall Residential January 2022 bills nearly identical compared to January 2021 as there hasn't been a change in rates o Average monthly and YTD electric bills for January 2022 compared to January 2021 are roughly $23 lower ▪ Billing numbers lower than last year due to a combination of higher monthly temperatures and reduced PCA o Electric Revenue Breakdown and Receivables presented- roughly 24% of yearly budgeted amount collected o 92% of 1st Quarter billings (Oct, Nov, Dec) collected and 12% of 2nd Quarter (Jan, Feb, Mar) billings collected o $65,000 increased total in Aged Receivables o Roughly $100,000 collected in outstanding bills since the collection agency commenced collections in May to collect the bad debt o Case asks what the typical reason is why customers are missing payments on their bills. ▪ Pospisil answers that they simply don’t have the money in most cases ▪ Bethapudi adds that as the Utility has gained insight on the aged receivables, the Utility will begin taking a more proactive approach to try to collect the outstanding receivables from certain types of accounts o Case asks if there is an application of which someone could apply to receive funds for payment assistance, particularly the fund in which customers can donate a dollar or on their bills to help fund this type of assistance. ▪ Pospisil answers that Customer Care does not vet who receives these funds and is done through a third party called Caring Place. The utility simply collects them. This service provided an additional $42,000 to help relieve the outstanding funds • Electric Operations Report- Electric Operations Manager and Danny Potter- Electric Safety and Employee Development Manager o Westbrook delivers the following report: o Electric Reliability (SAIFI)- .447 (Good Metric) o Electric Outage Duration (CAIDI)-73.78(Good Metric) Page 5 of 61 o Training- 100% (Good metric) o Safety, 100% attendance o Service Order Completion, 100% o Preventative Maintenance, % o Corrective Maintenance, 100% o Top 5 Outages Report ▪ No major outages, primarily typical; largest was due to a car hitting a padmount transformer. o Potter delivers a report over Winter Storm Landon ▪ Emergency Operations was on standby from 2/3 from 2/3 through 2/5 ▪ No major outages witnessed throughout the event ▪ There were a total of 4 outages through out the event and none of the outages lasted more than two hours ▪ Woodruff asks if the outages were residential. ▪ Potter answers one of the four was commercial, and the other three were residential outages ▪ Woodruff follows is there a way for the City to determine who is using gas versus electric heating. ▪ Bethapudi answers at this time, the City does not have that information ▪ Westbrook follows that the majority of new developments are a combination of the two services. ▪ Case asks if the City markets all electric services to new customers or construction ▪ Bethapudi answers that the only push for marketing comes withing the dually certified areas of Georgetown ▪ Richard Pajestka, Electric Engineering Supervisor, adds that it primarily depends on the builder ▪ Case follows that is this something that the City plans on doing in the future to help generate more revenue to the City. ▪ Bethapudi answers that one time the City had “key accounts” staff to help market this, and due to financial issues of the past, the City had to cut. This is on the Utility’s radar for future growth G. Electric Line Extension Policy and DER Updates/ Proposed Changes- Daniel McReynolds; Electric Engineering Manager • DER Updates: o DER interconnection policy adopted on 06/22/2021 in which new application requirements and an updated fee structure was implemented. o In additional, a new online application portal was implemented to process these applications o This process is being outsourced to Schneider Engineering to ensure the Page 6 of 61 interconnection standards are enforced. This results in the Utility cost of application review and preliminary inspection of $325. o All costs are recovered by the DER application fees o Woodruff asks to what would trigger the $1,000 fee for a facilities study. ▪ Bethapudi gives an example for which there is an event in which electric infrastructure in a particular area may need to updated due to the load being put on the system after preliminary review. This recovers the costs of internal study to perform a study. o Butler asks if the DER meters allow the City to use the meters in the future or will that to be changed out. ▪ Bethapudi answers that no change of the meters are necessary. In the past there used to be use of two meters for a DER facility, but this now done with one meter. • Line Extension Updates o The Electric Line Extension and Electric Meter Connect Policy was adopted on March 24, 2020, and revised July 27, 2021 o The policy outlined cost recover for electric infrastructure additions driven by customer requests. Costs were adjusted to cover material cost increases due to COVID-19 and supply chain interruptions. However, the analysis did not include labor cost adjustments for inflation. o Upon additional review, it was found that supply chain issues remain persistent and there is significant labor inflation costs. o As a result, the recommended changes are an increase of $400 to the single family per dwelling unit charge to a total of $3775, $100 to the multi-family per dwelling unit charge to a total of $1100 and a decrease for the single residential lot or residential upgrade application from $510 to $260 per application. o Case asks what is included in a line extension fee? ▪ Pajestka answers that is the flat-rate lot fee for any infrastructure that needs to be put on a lot in order for the area to receive power. ▪ Bethapudi adds that these fees are intended to cover the cost per unit charges. Anything that goes above that is charged at cost. o Woodruff and Case both ask what does the base fee of $3775. ▪ Bethapudi answers the base fee includes a 75k Va transformer and the line needed. Essentially this includes the typical infrastructure o Case asks if that fee is what is charges if a customer were to transfer overhead service to underground and they have an existing home. ▪ Pajestka answers that this typically charged at cost in this situation. However, a new lot/ home would be subject to the charge. Page 7 of 61 o Butler asks why was the line extension application reduced for the single family lots. ▪ Bethapudi answers because of the effort it takes. For instance, a business or a multifamily unit requires more management of the application, whereas a single unit family takes less effort. o Other changes include the recognition nof validity of the cost estimate from 90 days to 45 days due to the volatility of material prices and lead times. o The payment of 50% of the estimated costs was also reduced to 45 days for this reason. o The complete payment of the line extension fees need to be collected no later than 90 days from the issuance of the cost estimate in order to ensure all outstanding fees are paid. o Case asks that are all estimated costs and fees paid prior to construction. ▪ McReynolds confirms this is the case • Motion to approve the Line Extension Policy Updates by Woodruff, seconded by Butler. Votes passes 4-1 (Triggs absent) H. Risk Management Credit Policy Updates • This item was removed from the agenda prior to meeting Board moves into Executive Session at 4:54 PM Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. I. Section 551.086: Competitive Matters • Purchased Power Update Board moves back into Regular Session at 5:28 PM. Adjournment MOTION by Jones, second by Butler to adjourn the Board Meeting APPROVED 4-1 (Triggs absent) Electric Board Meeting Adjourned at 5:28 PM. Page 8 of 61 Page 9 of 61 City of Georgetown, Texas Electric Utility Board March 24, 2022 S UB J E C T: G eneral Manager's Monthly R eport- Daniel Bethapudi; G eneral Manager of Elec tric Utility IT E M S UMMARY: Includes : C ustomer S ervice and Billing- Letic ia Zavala- C us tomer S ervic e Direc tor Electric O perations R eport- Mike Wes tbrook- Elec tric O perations Manager Electric S afety and Employee Development R eport- Daniel P otter- Electric S afety and Employee Development Manager Audit and F inanc ial R eport- Leigh Wallac e- F inanc e Direc tor Update Warehouse O utsourcing Update P ole Attachments Update F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: Daniel Bethapudi-G eneral Manager of Electric Utility AT TAC H ME N T S: Description Type 03/24 Board Pres entation Cover Memo Page 10 of 61 Georgetown Electric Utility Advisory Board 03/24/2022 Page 11 of 61 22 AGENDA I.Regular Session: (* -indicates legislative action) A.Call to Order B.Roll Call C.Introduction of Visitors D.Public Wishing to Address the Board E.Review and Approval of Minutes* F.General Manager’s Monthly Report i.Customer Service and Billing Report ii.Operations Report iii.Safety and Employee Development Report iv.Audit and Annual Financial Report v.Warehouse Outsourcing Project Update G.Credit System International Agreement Renewal* H.Electric Just-in-Time Agreement Renewal* II.Executive Session: J. Purchased Power Update *-indicates legislative action Page 12 of 61 33 Review of Minutes •February 17th Meeting Page 13 of 61 General Manager’s Monthly Report 03/24/2022 Page 14 of 61 Customer Service and Billing – Electric Services Customer Service and Billing – Electric Services Customer Service and Billing – Electric Services Letica Zavala-Customer Care Director Page 15 of 61 66 •All Available Services* *Active & Inactive service delivery points Customer Statistics Available Electric Meters:January February Residential 27,110 27,192 Net Metering 541 542 General -Small 2,582 2,586 General -Large 343 342 Industrial 23 23 Industrial -Large 1 1 School Services 24 25 Municipal 256 256 Municipal -Pumping 42 42 Total Services Count 30,922 31,009 Available Security Lights January February Residential 95 95 Non-Residential 126 126 Municipal 4,132 4,203 Total Services Count 4,353 4,424 Page 16 of 61 77 •Breakdown by Active Electric Customers (unique) : •Electric Billing Collection: •Advanced Metering Infrastructure (AMI): 99.7% –Usage data automatically transmitted to billing office •Automated Meter Reading (AMR): .3% –Usage data is collected via a drive by system •# of Customer Estimations: 60 •Account did not get a “good” READ; or •Account did not get “ANY” READ (work order put in for metering to investigate) Customer Statistics January February Residential 26,586 26,657 Builder 713 729 Commercial & Industrial 2,414 2,412 Municipal/Schools 296 296 Total Electric Customers:30,009 30,094 Page 17 of 61 88 •Billed Meters/Services* *Meters billed during the month Customer Statistics Billed Electric Meters:January February Residential 26,810 26,901 Net Metering 528 530 General -Small 2,368 2,361 General -Large 336 330 Industrial 23 21 Industrial -Large 1 1 School Services 25 25 Municipal 197 183 Municipal -Pumping 38 38 Total Services Count 30,326 30,390 Billed Security Lights January February Residential 95 95 Non-Residential 126 126 Municipal 4,132 4,197 Total Services Count 4,353 4,418 Page 18 of 61 99 Customer Billing Statistics Average Monthly Electric Bill FY22 -Feb FY21 -Feb All Customers $194.19 $199.79 Average YTD Electric Bill FY2022 FY2021 All Customers $206.13 $220.08 Residential Customer -FY2022 FY2021 Cost per 1000 kWh $134.35 $134.35 (including PCA + Base) Average kWh 775 767 Electric Bill (based on Average kWh)$104.12 $103.05 Page 19 of 61 1010 Electric Revenue –FY 2022 Page 20 of 61 1111 Electric AR –Active & Inactive Accounts Electric AR –Combined Aging Breakdown Aged Receivables Report –thru 2/28/22 Electric Prior Month Variance 31 –60 Days $80,407.24 $106,474.27 ($26,067.03) 61 –90 Days $59,257.84 $66,861.76 ($7,603.92) 91 –120 Days $59,402.25 $73,651.79 ($14,249.54) 120 –365 Days $270,660.53 $254,582.48 $16,078.05 > 365 Days $121,629.32 $106,131.66 $15,497.66 Total $591,357.18 $607,701.96 ($16,344.78) Customer Count 2211 2232 (21) Electric Prior Month Variance Active Accounts $211,864.28 $216,153.98 ($4,289.70) Inactive Accounts $379,492.90 $391,547.98 ($12,055.08) Total $591,357.18 $607,701.96 ($16,344.78) Page 21 of 61 1212 Collection Agency Review Page 22 of 61 Electric Operations Report Mike Westbrook Electric Operations Manager City of GeorgetownPage 23 of 61 14 Performance Metrics City of Georgetown FEB. 2022 Jan.Feb.Good Caution Alert Training 100%100%>90%90%-80%<80% Safety 100%100%>90%90%-80%<80% SO OTC 100%100%>90%90%-80%<80% PM WO OTC 99%99%>90%90%-80%<80% CM WO OTC 100%100%>90%90%-80%<80% Electric Reliability (SAIFI)0.447 0.403 <1 1-2 >2 Electric Outage Duration (CAIDI)73.784 61.137 <116 116-200 >200 Page 24 of 61 15 Top Five Outages & Event Date Start Time Duration (min) Customers Affected Customer Minutes Cause Area 1/2/2022 3:57pm 64 5 320 Bad Hot leg Georgetown South 1/9/2022 9:24pm 106 3 318 Partial Power/connection at trans Rivery 1/12/2022 9:05am 77 3 231 Connection at weatherhead Georgetown South 1/14/2022 10:05pm 153 42 6,426 Car verse padmount trans Glasscock 1/26/2022 5:00am 38 8 304 Blown Fuse Georgetown South Date Start of Event End of Event # of Outages Average Duration Cause Area Page 25 of 61 16 Winter Storm Landon Report Date Start Time Duration (min) Customers Affected Customer Minutes Cause Area 2/3/2022 2:36am 78 1 78 Broken Jumper Rivery -20 2/4/2022 2:42am 120 7 840 Partial Power/connection at transformer Rivery -40 2/4/2022 4:22am 94 9 846 Partial Power/connection at transformer Gabriel -40 2/5/2022 2:10am 87 4 348 Partial Power/connection at transformer Georgetown -30 •12 Months Out: Extensive tree trimming, and maintenance programs helped keep outages low •24 Hours out: Electric crews patrolled known trouble spots for tree related outages and cleared any limbs discovered •Crews were staged in town for the first 48 hours for faster response. Crews were placed on rotating shifts to avoid burn out. Page 26 of 61 Electric Safety and Training Report Eric Pouncey Electric Operations Supervisor Page 27 of 61 1818 •APPA Safety Awards of Excellence 2021 •1st place division D (Based on Utility Size) •Monthly Safety Inspections: 22 •work practices, traffic control, Following APPA Safety Practices •March Incidents: 1 •Transformer Short Circuit •Average Hurt man rescue time: 2:26 •Industry Standard is 4 Minutes Electric Employee Safety and Development Page 28 of 61 Electric Warehouse Outsourcing Update Page 29 of 61 FY2021 Audit and Annual Financial Report Electric Utility Board, March 24, 2022 Page 30 of 61 2121 •AFR -Annual Comprehensive Financial Report •GAAP -Generally Accepted Accounting Principals o Rules and standards by which all financial reporting is presented and prepared o Not the same as budgetary accounting •GASB -Governmental Accounting Standards Board o The oversight body for accounting standards for governmental entities Background & Terms Page 31 of 61 22 •Performed by outside independent audit firm •Firm is selected by Council •Provides assurances of accurate reporting and financial integrity •Conducted in accordance with Government Auditing Standards •Ensures the City complies with internal policies •Ensures the City complies with external requirements Independent Audit Page 32 of 61 2323 •Introductory Section •Independent Audit Report •Management Discussion & Analysis (MD&A) •Financial Sections •Note to the Financials •Statistical Section Contents of the AFR: Page 33 of 61 2424 Summary Statement of Net Position This statement is similar to a Balance Sheet in the private sector 2021 2020 Current and other assets $97,211 $36,920 Capital assets 130,424 125,039 Total assets $227,635 $161,959 Deferred outflows of resources 911 $1,587 Total assets and deferred outflows $228,546 $163,546 Long-term liabilities 82,694 $35,551 Other liabilities 20,284 13,714 Total liabilities $102,978 $49,265 Deferred inflows of resources 474 1,115 Net position: Net Investment in capital assets $50,416 $102,292 Restricted 0 0 Unrestricted 74,678 10,893 Total net position $125,094 $113,185 Total Electric Fund Page 34 of 61 2525 Summary Statement of Activities This statement is similar to an Income Statement in the private sector 2021 2020 Revenues: Charges For Services $90,679 94,842 Grants and Contributions 14,773 6,534 Interest 31 14 Total Revenues $105,483 $101,390 Expenses: Expenses 88,790 79,162 Net Transfers 4,784 4,330 Total Expenses $93,574 $83,492 Change in net position 11,909 17,898 Net Position - Beginning 113,185 95,287 Net Position - Ending $125,094 $113,185 Total Electric Fund Page 35 of 61 2626 •Total net position $125 million; increase of $11.9 million over 2020 •Ending balance fully funding $30.5 million in reserves •Total net operating income (loss) ($369K) •Lowered PCA by 1 cent in January 2021 for rate competitiveness •$5 million decrease to sales revenue •REC sales (other revenue) totaled $4.1M •Depreciation expense of $6 million •Amortized 6 months of Winter Storm Uri energy expenses $1.2 million (utility contracts) •Non-operating income •$1M reimbursement for Titan infrastructure project expense (donations/grants) •$3.2M in AMR Allocation from Water Fund for shared service operations (other) •Total capital contributions (donated assets) $13.7 million •Winter Storm Uri in February 2021; Additional Notes to the financial statements regarding debt issuance and regulatory asset in Electric Fund •Combined (water and electric) utility debt coverage ratio 7.91 2021 Highlights for Electric Fund Pages 29 -32 Page 36 of 61 2727 Highlights from External Auditor •Unmodified or “clean” opinion •No material weaknesses, significant deficiencies, or audit adjustments Page 37 of 61 Legislative Action Items 03/24/2022 Page 38 of 61 2929 •Consideration and possible recommendation to renew an annual agreement between the City of Georgetown and Credit Systems International, Inc as the 3rd party collection agency for Utility Customer delinquent accounts in an annual not to exceed amount of $100,000.00 and to authorize the City Manager to execute renewals of the agreement for up to two additional one -year terms with the same terms and conditions for a total not to exceed amount of $300,000-Letica Zavala,Customer Care Director Credit System International- Agreement Renewal Page 39 of 61 3030 •In 2021, the City entered a contract with Credit Systems International, Inc.(CSII), a 3rd party collection agency, to pursue collections of closed utility account balances. The current balance of accounts submitted to CSII is $1,796,372.83. CSII Renewal Aging Aged Receivables <180 Days $224,957.31 180-365-Days $220,923.63 >365 Days $1,350,491.89 Total in Collections $1,796,372.83 * Debt incurred in conjunction with 2018 software conversion Services Amount Percentage Electric $1,203,569.80 67% Water $323,347.11 18% Sewer $125,746.10 7% Garbage $89,818.64 5% Drainage $53.891.18 3% Total $1,796,372.83 100% Page 40 of 61 3131 •The City has sent to CSII 3,501 accounts totaling $1,928,570.91 ranging in age from 90 days to 4 years. Through 2/28/22, collections of $112,122.27, or 5.8% of the submitted account balances, have been received at a cost of $18,686.15. Adjustments of $20,075.81 have also been applied to various accounts based on additional information discovered during the collection process. •Financial Impact: •CSII is paid a percentage of the collected funds on the submitted accounts . For debt less than 180 days, the fee is 17.9%, and for debt over 180 days the fee is 21.9%. The $100,000 per year above is based on a collection rate of 25% of the outstanding balances and is the same as last year. •Staff recommends extending the current contract as they have been a good partner with the City. CSII Renewal (cont.) Page 41 of 61 3232 •Consideration and possible recommendation to continue utilizing the Electric Just-In Time Supplier Agreement with Techline for Fiscal Year 2022 and update the contracted amount not to exceed $10,000,000-Mike Westbrook, Electric Operations Manager •The Electric Just-In-Time agreement supports material purchase’s as well as delivery for new development projects. This will be an update of the renewal of a three-year agreement. The Electric Just-In-Time Supplier Agreement is currently in the not to exceed amount of $5,000,000.00. This was originally presented to the Board on 11/17/2021. Due to the amount of New Development Projects we are recommending to increase the not to exceed amount to $10,000,000.00. •Financial Impact: •Funds are included in the FY 2022 CIP Budget •Staff recommends updating the current agreement to match the City’s growth in new development Just-In-Time Agreement Update- Techline Page 42 of 61 Executive Session: In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the item listed below will be discussed in closed session and is subject to action in the regular session. –Daniel Bethapudi, General Manager of the Electric Utility Sec. 551.086 Competitive Matters •Purchased Power Review Page 43 of 61 City of Georgetown, Texas Electric Utility Board March 24, 2022 S UB J E C T: C onsideration and pos s ible rec ommendation to renew an annual agreement between the C ity of G eorgetown and C redit S ystems International, Inc as the 3rd party collec tion agenc y for Utility C us tomer delinquent ac counts in an annual not to exc eed amount of $100,000.00 and to authorize the C ity Manager to exec ute renewals of the agreement for up to two additional one-year terms with the same terms and conditions for a total not to exceed amount of $300,000- Letic a Zavala, C ustomer C are Director IT E M S UMMARY: In 2021, the C ity entered a c ontract with C redit S ys tems International, Inc.(C S I I), a 3rd party collec tion agency, to purs ue collec tions of closed utility ac count balances. T he current balance of ac counts submitted to C S I I is $1,796,372.83. Aging Aged Receivables <180 Days $224,957.31 180-365 Days $220,923.63 >365 Days*$1,350,491.89 Total in Collections $1,796,372.83 Services Amount Percentage Electric $ 1,203,569.80 67% Water $ 323,347.11 18% S ewer $ 125,746.10 7% Garbage $ 89,818.64 5% Drainage $ 53,891.18 3% Total:$ 1,796,372.83 100% T he C ity has s ent to C S I I 3,501 ac counts to taling $1,928,570.91 ranging in age fro m 90 d ays to 4 years . T hrough 2/28/22, collec tions of $112,122.27, or 5.8% o f the s ubmitted acc o unt b alanc es , have been received at a cost o f $18,686.15. Adjus tments of $20,075.81 have als o b een applied to vario us acc ounts bas ed on additional information dis covered during the collec tion proc es s . S taff recommends extending the current c ontract as they have been a good partner with the C ity. F IN AN C IAL IMPAC T: C S I I is paid a perc entage of the c o llected funds on the s ubmitted ac counts . F or d eb t less than 180 days , the fee is 17.9%, and fo r debt over 180 d ays the fee is 21.9%. T he $100,000 p er year ab o ve is based o n a collec tion rate of 25% of the outstanding balanc es and is the same as last year. S UB MIT T E D B Y: Letic ia Zavala- C us tomer C are Direc tor Page 44 of 61 AT TAC H ME N T S: Description Type CSII Agreement Exhibit Page 45 of 61 CO N T R A C T R O U T I N G F O R M Contract No.__________________ Project No.________ Bid No._________ RFP No._________ New Contract Renewal Change Order Amendment Assignment Other NAME OF CONTRACTOR: CONTRACT DESCRIPTION: CONTRACT VALUE: GL ACCOUNT NO: GRANT FUNDED: NO YES If YES, Grant No. SIGNATURES RECOMMENDING APPROVAL _______________________________________________ ______3/14/2022__________ PURCHASING/CONTRACT COORDINATOR DATE _______________________________________________ ________________________ LEGAL DEPARTMENT DATE _______________________________________________ ________________________ DIRECTOR ADMINISTERING CONTRACT DATE (greater than $10,000) APPROVED and EXECUTED _______________________________________________ _______________________ DIRECTOR ADMINISTERING CONTRACT DATE ($10,000 or less) _______________________________________________ _______________________ CITY MANAGER/ASST CITY MANAGER DATE ($50,000 or less) _______________________________________________ _______________________ MAYOR/CITY SECRETARY ATTESTS (if applicable) DATE FINAL PROCESSING _______________________________________________ ________________________ PURCHASING DATE for Purchasing Use Only Insurance Certificates: on file Performance Bond:x Payment Bond: x Form 1295: 2022-848346 For City Secretary Use Only Originals sent to CSO: Scanned into Laserfiche/Global: Council Date: Item No.: Page 46 of 61 Page 47 of 61 5/5/2021 X S Page 48 of 61 Page 49 of 61 Page 50 of 61 Page 51 of 61 Page 52 of 61 Page 53 of 61 Page 54 of 61 Page 55 of 61 Page 56 of 61 Page 57 of 61 Page 58 of 61 Page 59 of 61 Page 60 of 61 City of Georgetown, Texas Electric Utility Board March 24, 2022 S UB J E C T: IT E M S UMMARY: F IN AN C IAL IMPAC T: N/A S UB MIT T E D B Y: R obert C as e- Board C hairman Page 61 of 61