1 00:00:00,000 --> 00:00:10,760 Good morning. As we have a forum, I'll call the City of Ditten Public Utility Board meeting 2 00:00:10,760 --> 00:00:22,400 on Monday, May 10th, 2021. It is 9.01 a.m. and we are in order. Are there any members 3 00:00:22,400 --> 00:00:27,920 from, or anybody from the public that would like to speak? 4 00:00:27,920 --> 00:00:34,440 Thank you, Chair. There are no members from the public wishing to speak on today's agenda. 5 00:00:34,440 --> 00:00:40,760 Thank you very much. Seeing no comments from the public, we'll move into the consent agenda. 6 00:00:40,760 --> 00:00:45,720 Are there any members of the board who would like to pull any of these items A through 7 00:00:45,720 --> 00:00:49,760 E? I'd like to pull C. 8 00:00:49,760 --> 00:00:58,160 Got C from Karen, Mr. Jumper. I'd like to pull A. 9 00:00:58,160 --> 00:01:04,560 Okay. So we're pulling items A and C. Would anybody like to make a motion? Would any member 10 00:01:04,560 --> 00:01:09,200 like to make a motion for items B, D, and E for approval? 11 00:01:09,200 --> 00:01:12,080 I still move. Ms. Russell? 12 00:01:12,080 --> 00:01:16,960 Second. Second from Mr. Jumper. Any further discussion? 13 00:01:16,960 --> 00:01:21,720 If not, please vote. All those in favor, please say aye. 14 00:01:21,720 --> 00:01:25,520 Aye. Any opposed, sign the same. 15 00:01:25,520 --> 00:01:32,240 Seeing none, the motion passes unanimously. Item A, let's just go in order. Mr. Jumper, 16 00:01:32,240 --> 00:01:39,800 if you want to ask your questions. Yeah. Let me get this pulled up. Sorry. Okay. 17 00:01:39,800 --> 00:01:44,720 So there's been several amendments. I see. I was kind of looking through those. The first 18 00:01:44,720 --> 00:01:56,520 couple seem to be relating to design, and then more recently to engineering services 19 00:01:56,520 --> 00:02:01,600 and permitting support. So I was just kind of curious, maybe some backstory here. Why 20 00:02:01,600 --> 00:02:07,960 are we designing so many times? Is that normal? And what is additional services and support? 21 00:02:07,960 --> 00:02:14,040 So, Mr. Jumper, we should have either Pritam Deshmuth or Stephen Gay with the wastewater 22 00:02:14,040 --> 00:02:23,360 utility to respond to that. Mr. Chairman, while we're at it, I'm curious, 23 00:02:23,360 --> 00:02:29,160 it seems that we discussed the construction ads for this Hickory Creek project at our 24 00:02:29,160 --> 00:02:37,720 last meeting. And I asked if we had already approved the design and the answer appeared 25 00:02:37,720 --> 00:02:43,920 to be affirmative, but here it appears we are approving the design after we've approved 26 00:02:43,920 --> 00:02:49,160 the recommendation for the construction work. Or do I have these out of order or are they 27 00:02:49,160 --> 00:02:57,880 different things? So good morning. Can you hear me? Yes. 28 00:02:57,880 --> 00:03:04,000 Hi, good morning. Chair, members of the PUB, Pritam Deshmuth, deputy director for water 29 00:03:04,000 --> 00:03:09,680 and wastewater. Yeah, there are quite several different things that are going on in this 30 00:03:09,680 --> 00:03:19,680 particular contract. It's an older contract, and we would not quite set it up this way 31 00:03:19,680 --> 00:03:25,400 today if given that option. But the way this contract was set up, it actually includes 32 00:03:25,400 --> 00:03:31,940 three different components. So we started with the first project, which is the Hickory 33 00:03:31,940 --> 00:03:40,280 Creek detention facility, which is off of FM 1830 or Country Club Road and Ryan Road 34 00:03:40,280 --> 00:03:46,520 right behind that area. The second project that was added a little bit later is the West 35 00:03:46,520 --> 00:03:53,840 Peak Flow pump station, which was the second amendment for design. It is actually located 36 00:03:53,840 --> 00:04:01,920 at the treatment facility, the water reclamation plant. And then the third project is the Hickory 37 00:04:01,920 --> 00:04:09,920 Creek lift station. And that design is the third amendment. So if you look at it, these 38 00:04:09,920 --> 00:04:16,080 are three separate projects that were combined in the same contract. At the time, it was 39 00:04:16,080 --> 00:04:21,680 the fastest way to move forward to add the Hickory Creek lift station after it had failed, 40 00:04:21,680 --> 00:04:30,480 if you recall a couple years ago. So right now, the actual amendment for this particular 41 00:04:30,480 --> 00:04:36,440 project, it is for the lift station. And it is wrapping up several things, creating record 42 00:04:36,440 --> 00:04:43,640 drawings, providing some construction-related support. We are, as we speak, wrapping up 43 00:04:43,640 --> 00:04:50,320 this project this month. So it will go through a testing phase for about a month. It'll test 44 00:04:50,320 --> 00:04:57,840 the pumps. It'll test the actual lift station. And that's where we needed some support from 45 00:04:57,840 --> 00:05:03,880 the consultant who had actually designed this. And the last piece was creating some record 46 00:05:03,880 --> 00:05:09,960 drawings for this. So we are bringing it forward for that lift station amendment. 47 00:05:09,960 --> 00:05:18,880 Does that answer your question, Mr. Jumper? And Mr. Rybak? 48 00:05:18,880 --> 00:05:24,880 Question? Hang on a second. Ray, you're muted. 49 00:05:24,880 --> 00:05:34,680 Excuse me. I was indeed. Okay. So I'm still not 100% clear, but it sounds like from the 50 00:05:34,680 --> 00:05:42,400 description that the lift station work, this additional design work is for the same lift 51 00:05:42,400 --> 00:05:50,080 station project that we discussed at our last meeting. Is that correct? 52 00:05:50,080 --> 00:06:01,880 So yeah. So I'm not sure what was at last meeting, but I can go back and find out exactly 53 00:06:01,880 --> 00:06:08,120 what items were pulled in last time for the contract amendment. 54 00:06:08,120 --> 00:06:12,960 This isn't a big deal. I don't want to make it a big deal. It's a curiosity question on 55 00:06:12,960 --> 00:06:18,360 my part. So if you don't know and I don't know, then for the moment, I think that's 56 00:06:18,360 --> 00:06:22,840 okay. But I wanted it pulled out so I could at least ask the question. So Ben, I appreciate 57 00:06:22,840 --> 00:06:29,440 you getting on that ahead of me. Ms. Russell, you had a question? 58 00:06:29,440 --> 00:06:36,720 Yes, I was wondering if part of this was because there's a significant amount of construction 59 00:06:36,720 --> 00:06:47,200 going to be happening out in that area. So I want to answer the previous question. I'm 60 00:06:47,200 --> 00:06:55,480 looking at the previous agenda. It was a construction amendment for the contractor, the actual contractor 61 00:06:55,480 --> 00:07:02,920 that is constructing. That was brought in front of PUB for additional amendments related 62 00:07:02,920 --> 00:07:09,360 to the actual construction piece. And this contract is for design amendment. So those 63 00:07:09,360 --> 00:07:13,440 are two slightly different things. One is with the contractor, one is with our design 64 00:07:13,440 --> 00:07:23,360 consultant. Yes, sir, I understand that. But I guess my question is, it looks like the 65 00:07:23,360 --> 00:07:29,520 design came to us after the construction. How could they have a construction ad before 66 00:07:29,520 --> 00:07:34,720 the design ad? It just seems a little out of sync to me. That's all I mean. 67 00:07:34,720 --> 00:07:44,240 I think this design piece is for the actual, as I mentioned, for the actual, the testing 68 00:07:44,240 --> 00:07:48,680 piece, the pump testing, and all the testing that's going to happen after the construction 69 00:07:48,680 --> 00:07:54,440 is completed. And it is also for creating some record drawings. So it's after the fact, 70 00:07:54,440 --> 00:07:56,760 correct? Thank you. 71 00:07:56,760 --> 00:08:03,240 Ms. Russell's question was just I think she was just trying to verify that this lift station 72 00:08:03,240 --> 00:08:08,720 and the other construction is due to the heavy growth in that part of the world? 73 00:08:08,720 --> 00:08:14,080 Correct. The detention facility and the West Peak Flow Pump Station, both of them are due 74 00:08:14,080 --> 00:08:21,240 to heavy growth and we are creating additional detention for the peak flows. That is correct. 75 00:08:21,240 --> 00:08:31,280 Okay. Any further questions on this item? If not, would anyone like to make a motion 76 00:08:31,280 --> 00:08:38,520 to approve item A? So moved. 77 00:08:38,520 --> 00:08:43,280 I'll take Lee's there and Karen is a second. I'll second, yeah. 78 00:08:43,280 --> 00:08:49,800 Okay. All right. Is there any further discussion? If not, all those in favor, please say aye. 79 00:08:49,800 --> 00:08:57,240 Aye. Any opposed? None the same. There is none. It passes unanimously. Moving on to 80 00:08:57,240 --> 00:09:02,760 item C and that was Mr. Vinnie. Yeah, I just, this isn't really a question. I just wanted 81 00:09:02,760 --> 00:09:12,200 to commend city staff for incorporating the dark sky guidelines into the contract with 82 00:09:12,200 --> 00:09:21,320 the firm. Just looking at that organization, it just seems like it's fairly easy to incorporate 83 00:09:21,320 --> 00:09:28,280 their guidelines for lighting and the payoff is pretty big, both for people who like to 84 00:09:28,280 --> 00:09:35,020 look at the dark sky and also for migrating birds and other things. It's not hard to direct 85 00:09:35,020 --> 00:09:43,440 your streetlights down and just being cognizant of that and incorporating that into your streetlight 86 00:09:43,440 --> 00:09:48,800 design makes a big difference and it doesn't seem that hard. So I just wanted to commend 87 00:09:48,800 --> 00:09:54,560 the staff for being aware of that program and incorporating that into their request 88 00:09:54,560 --> 00:10:06,340 to the firm. I have no objections to C. Official thank you to staff. Yes. Would you like to 89 00:10:06,340 --> 00:10:13,440 entertain a motion, Karen, for this item then? I'll move for approval. We have a motion to 90 00:10:13,440 --> 00:10:23,200 approve. Is there a second? Okay. Barbara, Ms. Russell has a second. Any further discussion? 91 00:10:23,200 --> 00:10:30,640 If not, all those in favor, please say aye. Aye. Any opposed, sign the same. It appears 92 00:10:30,640 --> 00:10:34,640 that this one has passed unanimously. That was consent agenda item C. We are done with 93 00:10:34,640 --> 00:10:48,120 the consent agenda. We'll move on to items for individual consideration. Item A, consider 94 00:10:48,120 --> 00:11:02,360 approval of the April 26th minutes. Any changes? If not, those stand as presented and are approved. 95 00:11:02,360 --> 00:11:10,280 Item B. So, Mr. Chairman and members of the PAB, we have Rowdy Patterson. He's our line 96 00:11:10,280 --> 00:11:14,440 construction division manager. We'll be doing a short presentation here. If you'll give 97 00:11:14,440 --> 00:11:17,800 him just a minute so he can get everything set up for you and he'll walk you through 98 00:11:17,800 --> 00:11:47,640 that. I'll let us know whenever you're ready, Rowdy. You are muted, by the way. 99 00:11:47,640 --> 00:11:56,920 We'll get him unmuted here in a second and get his camera on, too. Kim's helping him 100 00:11:56,920 --> 00:12:24,840 out. Are you unmuted? I broke it. I want you to un-share it real quick. 101 00:12:24,840 --> 00:12:47,720 I think I am. Can y'all hear me? Good morning, Chairman and members of the PAB. As Tony stated, 102 00:12:47,720 --> 00:12:54,200 my name is Rowdy Patterson. I'm the line division manager, one of the line division managers 103 00:12:54,200 --> 00:12:59,480 with DME. I'm over the construction side. And what we're bringing to you this morning 104 00:12:59,480 --> 00:13:09,200 is the findings from the RFP 7633 for underground electric installation. This will be presented 105 00:13:09,200 --> 00:13:14,360 to council. This date is actually wrong. We didn't make that one. We will be on next week's 106 00:13:14,360 --> 00:13:24,680 council agenda. A background of the city's utilization of contractors. We have utilized 107 00:13:24,680 --> 00:13:31,460 contractors for installation of underground utilities since 2000, which we were given 108 00:13:31,460 --> 00:13:37,400 the direction at that time that the council at that time wanted most of our stuff, most 109 00:13:37,400 --> 00:13:43,240 of our new subdivisions, and our downtown area converted to underground. So that's what 110 00:13:43,240 --> 00:13:50,540 we did. At this time, we have approximately 57% of all the electric distribution system 111 00:13:50,540 --> 00:13:58,720 that has been installed underground. We utilize contractors. I call it for the fluff, for 112 00:13:58,720 --> 00:14:05,520 the stuff that our guys can't do. They keep the peaks and valleys from being too high 113 00:14:05,520 --> 00:14:11,080 or too low and making it where our guys can actually do the jobs that are needed to be 114 00:14:11,080 --> 00:14:22,560 done. Right now, for the last 10 years, 25 to 45% of all the electric distribution projects 115 00:14:22,560 --> 00:14:35,880 have been installed by underground contractor. So we've utilized them quite a lot. Hold on 116 00:14:35,880 --> 00:14:46,580 just a second. Here's an example of a project that was done several years back out on Western 117 00:14:46,580 --> 00:14:53,520 Boulevard out towards Wynco distribution center. This was a major project where we installed 118 00:14:53,520 --> 00:15:02,240 a four by four duck bank, 16, four inch conduits, six inch conduits, I'm sorry, for all of the 119 00:15:02,240 --> 00:15:07,560 industrial growth that's going on out there. Wynco was the first one that was fed off of 120 00:15:07,560 --> 00:15:15,360 this. And then we went to... There's a project that was constructed just to the south of 121 00:15:15,360 --> 00:15:22,240 Wynco where we tapped on to this existing duck bank and utilized it to feed this second 122 00:15:22,240 --> 00:15:28,380 one. And then now we have two more that are going in at this time. This is an aerial view 123 00:15:28,380 --> 00:15:32,760 of that duck bank being installed. And if you can see out towards the road, we had to 124 00:15:32,760 --> 00:15:39,600 build a temporary pole line overhead so that we could service them during the construction 125 00:15:39,600 --> 00:15:49,360 project. That pole line has been removed and now it is all underground in that area. Currently, 126 00:15:49,360 --> 00:15:56,080 we have 35 different underground distribution projects in various phases already engineered 127 00:15:56,080 --> 00:16:02,680 and they've been released for us to construct. This is just a listing of a few of those. 128 00:16:02,680 --> 00:16:08,840 Country Club Estates, Bonnie Bray Phase Five is a major ordeal out by Apogee Stadium for 129 00:16:08,840 --> 00:16:14,000 UNT. It's where we're taking all of that down Bonnie Bray underground. And then there's 130 00:16:14,000 --> 00:16:22,560 just a list of some of the other ones. Here's some more pictures of the project out at Love's 131 00:16:22,560 --> 00:16:28,320 Truck Stop when it came in. We actually had to bore underneath 35 and then take a main 132 00:16:28,320 --> 00:16:42,120 line down Barthold Road for the future conversion of 1173. So now forecasted projects. 84 residential 133 00:16:42,120 --> 00:16:49,100 and commercial projects are in various stages of designing and engineering. 31 feeder extensions 134 00:16:49,100 --> 00:16:56,800 are also in engineering design. Some of those projects include all of the I-35 widening 135 00:16:56,800 --> 00:17:01,800 projects. We have eight of them that will be underground and some portions of it will 136 00:17:01,800 --> 00:17:09,200 go back overhead due to where the location is. We also have the Hunter Cole Ranch that 137 00:17:09,200 --> 00:17:15,240 will be coming in. It's a big unknown variable. And then we have the Hickory Creek, Hickory 138 00:17:15,240 --> 00:17:26,680 Street substation, which will be a gas insulated substation. Request for proposals were sent 139 00:17:26,680 --> 00:17:36,200 out to 455 prospective suppliers. We did receive five proposals in. We evaluated them on their 140 00:17:36,200 --> 00:17:44,600 price, the schedules, the compliance with specification and indicators of probable performance. 141 00:17:44,600 --> 00:17:49,480 Once we narrowed it down, we conducted the best and final offer and clarified line item 142 00:17:49,480 --> 00:17:57,280 pricing. And FX5 utility, who is our current contractor, was ranked the highest and determined 143 00:17:57,280 --> 00:18:06,080 to be the best value for the city. They were also the lowest priced. So the recommendation 144 00:18:06,080 --> 00:18:14,560 that purchasing and DME has come up with is to award FX5 utility construction LLC a five 145 00:18:14,560 --> 00:18:21,780 year contract in the not to CD amount of $15 million, which is based upon previous historic 146 00:18:21,780 --> 00:18:29,440 spend and approved distribution projects budgeted. Like, as I stated before, the contractor was 147 00:18:29,440 --> 00:18:37,920 the lowest cost respondent with also the highest evaluated score. Any questions? 148 00:18:37,920 --> 00:18:49,960 Just one question. I'm glad to see these are moving or it's more common. Glad to see these 149 00:18:49,960 --> 00:18:58,160 are moving forward. Is there any, where are we on the, I think it was Forest Ridge and 150 00:18:58,160 --> 00:19:03,680 some of Montecito that had the underground lines that we had so much trouble with several 151 00:19:03,680 --> 00:19:05,000 years ago? 152 00:19:05,000 --> 00:19:11,360 That project has actually been completed, Billy. That project is done. The maintenance crew 153 00:19:11,360 --> 00:19:18,240 did a lot of that, but we did have our underground boring contractor and FX5 both working on 154 00:19:18,240 --> 00:19:19,240 that project. 155 00:19:19,240 --> 00:19:22,520 Very good. I know y'all had a lot of problems out there. 156 00:19:22,520 --> 00:19:25,040 We did. We did. And it's helped us. 157 00:19:25,040 --> 00:19:27,040 It made your beard gray. 158 00:19:27,040 --> 00:19:30,280 It does. You're exactly right. 159 00:19:30,280 --> 00:19:38,920 It'll do that to you. My question is, so it sounds like you anticipate roughly $3 million 160 00:19:38,920 --> 00:19:45,280 a year of expenditures for this underground work over the next five year period. 161 00:19:45,280 --> 00:19:46,280 That's correct. 162 00:19:46,280 --> 00:19:51,800 Okay. So you've got, you said you had like 35 open distribution projects currently? 163 00:19:51,800 --> 00:19:54,320 Currently that are underground projects. 164 00:19:54,320 --> 00:20:04,640 Well, Mr. Ryback, the only caveat that I'll give you that is the Hunter Coal Ranch development 165 00:20:04,640 --> 00:20:09,000 that could very well have an impact on these numbers here. But I think for right now, I 166 00:20:09,000 --> 00:20:11,440 think we're pretty comfortable where we are. 167 00:20:11,440 --> 00:20:18,040 Understood. Will the Hunter Coal Ranch be a separate project in and of itself as opposed 168 00:20:18,040 --> 00:20:25,020 to this many underground distribution conversions you're currently in the midst of? 169 00:20:25,020 --> 00:20:30,080 It should be included in all of these underground projects that we're talking about. I know 170 00:20:30,080 --> 00:20:35,600 that there is another substation, an Underwood substation that is forecast for out in that 171 00:20:35,600 --> 00:20:41,840 location. So we'll have a project coming out of that substation that'll also be included 172 00:20:41,840 --> 00:20:42,840 in all of this. 173 00:20:42,840 --> 00:20:47,760 Oh, it sounds like you've got lots of fun stuff ahead of you. 174 00:20:47,760 --> 00:20:51,640 We do. Looking forward to it. 175 00:20:51,640 --> 00:20:53,600 Thank you. 176 00:20:53,600 --> 00:21:00,720 Will this contract allow you to escalate some of those dollar amounts forward to you? Like 177 00:21:00,720 --> 00:21:05,120 if you're able to do more than $3 million a year, will you be able to use year twos 178 00:21:05,120 --> 00:21:07,160 and year one? 179 00:21:07,160 --> 00:21:13,560 Yes, that is correct. It doesn't tie us to a yearly amount. It's the 15 million over 180 00:21:13,560 --> 00:21:14,560 the five year. 181 00:21:14,560 --> 00:21:21,920 Okay, that's good. Because, you know, obviously, the faster this happens, the better on everybody. 182 00:21:21,920 --> 00:21:22,920 Correct. 183 00:21:22,920 --> 00:21:26,720 Any other board members with any other questions? 184 00:21:26,720 --> 00:21:32,080 We'll entertain a motion to approve. 185 00:21:32,080 --> 00:21:41,460 Karen raised your hand. I'll take that as a motion to approve. 186 00:21:41,460 --> 00:21:42,460 I'll second. 187 00:21:42,460 --> 00:21:49,920 Second from Mr. Jumper. Any further discussion? If not, all those in favor, please say aye. 188 00:21:49,920 --> 00:21:50,920 Aye. 189 00:21:50,920 --> 00:21:54,360 Aye. Any opposed, sign the setting. 190 00:21:54,360 --> 00:21:59,200 There is none. It passes unanimously. Thank you, Mr. Pax. 191 00:21:59,200 --> 00:22:04,200 Before you move on, I just want to say Rowdy is one of our long tenured employees. I mean, 192 00:22:04,200 --> 00:22:11,240 he's been the DME for 35 years now, Rowdy, and the type of quality that we have of employees 193 00:22:11,240 --> 00:22:16,360 at DME and just really appreciate him and all his staff for the work that they do. 194 00:22:16,360 --> 00:22:17,360 Thank you, Tony. 195 00:22:17,360 --> 00:22:19,920 Yep, we're glad you're still here. 196 00:22:19,920 --> 00:22:21,800 Me too, Billy. 197 00:22:21,800 --> 00:22:24,160 Congratulations on your long term of service. 198 00:22:24,160 --> 00:22:26,000 You bet. Thank you. 199 00:22:26,000 --> 00:22:33,880 All right. We'll move on to Individual Item C, Management Reports. 200 00:22:33,880 --> 00:22:40,320 So, Mr. Chair and members of the PAB, we have a few items that we've provided to you. The 201 00:22:40,320 --> 00:22:45,120 first item that we have listed on here is the Service Assistance Program Clarification. 202 00:22:45,120 --> 00:22:52,280 If you recall, Eugene McKinney from Solid Waste made a presentation that was a follow-up, 203 00:22:52,280 --> 00:22:57,840 so certainly if there's any questions, I think he or Brian Borner are on the line, so just 204 00:22:57,840 --> 00:23:01,480 see if anyone has any questions on that item. 205 00:23:01,480 --> 00:23:03,760 Any questions? 206 00:23:03,760 --> 00:23:11,600 Okay, so the next item is our deck dashboard for month ending February. Nick Benson is 207 00:23:11,600 --> 00:23:17,440 here with us. If anyone has any questions on those, I think that really kind of tells 208 00:23:17,440 --> 00:23:22,200 you at least a bit of the story of what happened during the winter storm, substantial amount 209 00:23:22,200 --> 00:23:26,800 of revenue that did come in as a result of the deck. Obviously, that as much as we had 210 00:23:26,800 --> 00:23:35,880 hoped because of the 48-hour shutdown that we had, but again, pretty large impact there 211 00:23:35,880 --> 00:23:40,320 to the positive to help offset that purchase power expense that you'll see on the other 212 00:23:40,320 --> 00:23:46,080 side of the ledger. But any questions on that? 213 00:23:46,080 --> 00:23:57,920 Yeah, I noticed the high runtimes for August 2020 and February 2021, which made perfect 214 00:23:57,920 --> 00:24:11,260 sense. I'm just not remembering what happened in October 2020 to make those runtimes high. 215 00:24:11,260 --> 00:24:17,080 They're also sort of up at that level. And the reason I'm asking is just I want us to 216 00:24:17,080 --> 00:24:23,320 be able to predict the sorts of things that are going to create a demand. 217 00:24:23,320 --> 00:24:28,280 Yeah, and Terry Nolte is here. He can speak to that. Terry? 218 00:24:28,280 --> 00:24:39,480 Yes. Good morning, PB members. Mr. Vinnie, in October of this past year, we had abnormally 219 00:24:39,480 --> 00:24:48,720 warm weather and the deck did run significantly more than we anticipated. You recall, we had 220 00:24:48,720 --> 00:24:54,600 a relatively mild early part of the summer. We had a hot September and October ended up 221 00:24:54,600 --> 00:24:59,560 being very hot as well. So that's the reason why we had those high runtimes. 222 00:24:59,560 --> 00:25:07,340 I guess I was indoors the whole time, so I didn't notice. But yeah, thanks for that clarification. 223 00:25:07,340 --> 00:25:14,240 So obviously what we want to do is be able to prepare for unusual weather like that. 224 00:25:14,240 --> 00:25:23,360 So by October, I think we're usually assuming mild weather and low runtimes. So anyway, 225 00:25:23,360 --> 00:25:26,960 that's all. Thank you. Thank you, Terry. 226 00:25:26,960 --> 00:25:30,880 I think Mr. Rybak has a question, Billy. Oh, I'm sorry. Go ahead, Billy. 227 00:25:30,880 --> 00:25:38,240 No problem. Thank you. I'm wondering, the report notes that the energy center produced 228 00:25:38,240 --> 00:25:47,480 about, it looks like I'm reading this right, 118 million more in deck revenue. Did that 229 00:25:47,480 --> 00:25:56,200 help to offset the charges that we had to the utility due to the weather event and the 230 00:25:56,200 --> 00:26:02,400 high price of power? Yeah, the short answer is, yes, absolutely. 231 00:26:02,400 --> 00:26:06,400 And I think the other part of the answer here will be that, I mean, obviously, we still 232 00:26:06,400 --> 00:26:13,440 have almost half the year left here. And so any additional revenue that's recognized through 233 00:26:13,440 --> 00:26:17,680 the deck will continue to offset that purchase power expense. Obviously, we're also going 234 00:26:17,680 --> 00:26:21,880 to have purchase power expense going forward. But the hope is that we're on the positive 235 00:26:21,880 --> 00:26:26,640 side of the ledger to help offset that, that net 140 million dollars that we've been talking 236 00:26:26,640 --> 00:26:29,880 about. Right. That was my question. So I guess we'll 237 00:26:29,880 --> 00:26:32,680 know better later in the year. Yes, sir. 238 00:26:32,680 --> 00:26:37,240 Thank you. Thank you, lady. Thank you, Tony. 239 00:26:37,240 --> 00:26:42,680 Okay, so the next item that we have for you, I know Ms. Devaney had a couple questions 240 00:26:42,680 --> 00:26:48,640 on the Hickory GIS station. And we've submitted a memo to you, kind of just giving you an 241 00:26:48,640 --> 00:26:54,000 update on that project. And I think for the most part, as far as the architectural components, 242 00:26:54,000 --> 00:26:58,280 everything remains as we discussed with the community. The one thing that we have changed 243 00:26:58,280 --> 00:27:04,120 is we've now basically moving forward with a basically a design build process for for 244 00:27:04,120 --> 00:27:10,200 that station. But Jerry Fildler is on the line and Terry's also. So if there's any specific 245 00:27:10,200 --> 00:27:13,920 questions you have, they'll be happy to go through that with you. 246 00:27:13,920 --> 00:27:22,020 You know, I hope y'all hope everybody on the board did look at that photo of what right 247 00:27:22,020 --> 00:27:27,760 now they're thinking. Pretty nice looking number. It's from a few years ago. 248 00:27:27,760 --> 00:27:36,640 Okay, so, you know, the next couple items are really just kind of a heads up on upcoming 249 00:27:36,640 --> 00:27:42,840 agenda items. Certainly, we have the budget and rates presentations here coming to you 250 00:27:42,840 --> 00:27:50,280 starting on June 14. We'll be walking through the various budgets for for the for the three 251 00:27:50,280 --> 00:27:55,640 major utilities, but certainly, you know, solid waste as well. And, and in customer 252 00:27:55,640 --> 00:28:00,280 service will also come to you because they're primarily funded or they're primarily funded 253 00:28:00,280 --> 00:28:05,580 by by the utilities. So that will be coming to you as well. And then as far as new business 254 00:28:05,580 --> 00:28:11,060 action items, you know, we've completed the item on the minutes and we have two items 255 00:28:11,060 --> 00:28:16,840 left over one solid waste that will come back to you when we complete the comprehensive 256 00:28:16,840 --> 00:28:22,560 solid waste management, you know, study and review. And then the question from Mr. Soap 257 00:28:22,560 --> 00:28:28,840 as well on, on the solar installations, we'll, we're going to embed that into the budget 258 00:28:28,840 --> 00:28:34,280 presentation when we come to you with DME's budget and, and hopefully have some conversations 259 00:28:34,280 --> 00:28:38,400 with you about that, just the overall solar programs along with other programs or what 260 00:28:38,400 --> 00:28:42,560 the impacts may be. So, so with that, Billy, that that concludes the items be happy to 261 00:28:42,560 --> 00:28:48,440 answer any questions anyone they have on any of those. Any other questions or new business 262 00:28:48,440 --> 00:28:58,000 action items as well? Suggestions, requests? And we're hearing none. And Billy before, 263 00:28:58,000 --> 00:29:03,840 sorry, excuse me, Billy, before you move on, been asked if you can go back to item A on 264 00:29:03,840 --> 00:29:09,220 the minutes and actually do a vote on that. Oh, okay. All right. I thought I had Robert's 265 00:29:09,220 --> 00:29:18,640 rules of orders in order. Move approval of the minutes from April 26, 2021. Approve approval. 266 00:29:18,640 --> 00:29:28,440 Motion to approve. Ms. Russell. Second from Mr. Jumper. All those in favor, please say 267 00:29:28,440 --> 00:29:36,040 aye. Aye. Aye. Any opposed, sign the same. Hearing none, move on to concluding items, 268 00:29:36,040 --> 00:29:49,160 we've got a work session. Item number A, DME energy risk management policy. So, Mr. Chairman 269 00:29:49,160 --> 00:29:54,160 and members of the board, we have Smith Day. He's our executive manager for risk and compliance 270 00:29:54,160 --> 00:30:01,240 at DME. He'll be walking through the presentation. Smith? Mr. Thank you, Tony. And good morning 271 00:30:01,240 --> 00:30:07,120 members of the BUB. I've got, I'm Smith Day, as Tony said, the executive manager of regulatory 272 00:30:07,120 --> 00:30:14,120 and risk over DME. I've got a few slides to show you this morning. This is an annual event 273 00:30:14,120 --> 00:30:24,880 for us. And it's the update of our risk policy. Again, it's what we want to do here and accomplish 274 00:30:24,880 --> 00:30:29,200 here is get these materials in your hands, because in a couple of weeks, we're going 275 00:30:29,200 --> 00:30:36,160 to bring it back to you for individual consideration item so that you can have a couple of weeks 276 00:30:36,160 --> 00:30:43,280 with them, study them. And if you have some further questions at the individual consideration, 277 00:30:43,280 --> 00:30:50,360 you can ask. So we can take some questions today as well. But without further ado, I'm 278 00:30:50,360 --> 00:31:12,280 going to attempt technology's fate here and share my screen with you. And can everyone 279 00:31:12,280 --> 00:31:26,480 see the screen? Yes. We're good. Very good. Thank you. Okay. What is an energy risk policy? 280 00:31:26,480 --> 00:31:31,860 Well, at its most basic level, the risk is all in the name. The risk management policy 281 00:31:31,860 --> 00:31:37,920 is a document that lays out the parameters of how the organization manages this risk. 282 00:31:37,920 --> 00:31:42,640 It defines different types of risk. It lays out a plan to deal with those risks, tells 283 00:31:42,640 --> 00:31:48,860 us the roles of each person in the organization and the authority and limits they have. It 284 00:31:48,860 --> 00:32:00,400 also provides minimum reporting requirements. Why does DME need a risk policy? Well, DME 285 00:32:00,400 --> 00:32:07,120 as a city-owned enterprise is a substantial operation. It is the sixth largest municipal 286 00:32:07,120 --> 00:32:14,600 utility in Texas. The activity it handles really deserves an organized policy on how 287 00:32:14,600 --> 00:32:22,600 to manage the risk for trade payers. The risk policy was developed several years ago, and 288 00:32:22,600 --> 00:32:28,960 as I said earlier, we update it every year. The power supply budget is one of the largest 289 00:32:28,960 --> 00:32:35,800 expenses coming in at a little under 60 million in a typical year. And as we know, the extreme 290 00:32:35,800 --> 00:32:42,540 weather event in February has made this year, of course, a very atypical year. That same 291 00:32:42,540 --> 00:32:50,100 event introduced a multiple set of uncontrollable variables, and these things were outside of 292 00:32:50,100 --> 00:32:57,880 normal market conditions that any utility would prudently plan for. And so that impact 293 00:32:57,880 --> 00:33:05,240 of the event was $140 million, as I think everyone here knows. And it really redefined 294 00:33:05,240 --> 00:33:16,640 the risk profile that DME and really all Texas utilities must plan for. The governance requirements 295 00:33:16,640 --> 00:33:26,840 of the risk policy, annually the policy is reviewed by the risk committee, then of course 296 00:33:26,840 --> 00:33:32,120 here BUB. Ultimately, it's approved by the council with changes if changes are required. 297 00:33:32,120 --> 00:33:39,440 And we do have some changes this year, of course. These changes are largely in reaction 298 00:33:39,440 --> 00:33:47,360 to the February event, to address those in a changing landscape of our risk profile. 299 00:33:47,360 --> 00:33:53,720 The box in the lower right, just to draw your attention to that, defines the risk committee 300 00:33:53,720 --> 00:34:03,440 and who it is and who's on it. As you see, the chair of the BUB is a regular voting member 301 00:34:03,440 --> 00:34:10,960 of the committee. We do have, of course, more than just the folks here in the box, usually 302 00:34:10,960 --> 00:34:17,040 a meeting that consists of additional people from finance. It could be additional people 303 00:34:17,040 --> 00:34:28,240 from actually the city's risk division itself and others from the EMO as well. 304 00:34:28,240 --> 00:34:40,960 Now, some of the highlights of the risk policy, this really provides a high level listing 305 00:34:40,960 --> 00:34:49,280 of the contents of the policy and it's provided in your packet is all the details, of course. 306 00:34:49,280 --> 00:34:54,120 And as I said, we're going to be seeking formal approval here in a couple of weeks. We know 307 00:34:54,120 --> 00:35:01,800 this documents are very technical and for some of you, it's an actual introduction to 308 00:35:01,800 --> 00:35:10,400 the processes that we have. The major provisions of the policy or a separation 309 00:35:10,400 --> 00:35:19,440 of the roles and duties and controls that are within the DME organization around this activity 310 00:35:19,440 --> 00:35:27,540 and the policy delineates the reporting as being required. The two key daily reports 311 00:35:27,540 --> 00:35:34,320 that we have or the daily position reports and the credit exposure reports, and those 312 00:35:34,320 --> 00:35:41,800 are produced every day by the middle office. And that's independent from the deal makers, 313 00:35:41,800 --> 00:35:49,240 which is called the front office. The policy provides a lot of answers as to who, what 314 00:35:49,240 --> 00:35:57,680 and when, but most of the how is in the hedge plan. And the hedge plan is going to be discussed 315 00:35:57,680 --> 00:36:04,000 here in executive session by Terry Nolte here in a few minutes. And that's a key part of 316 00:36:04,000 --> 00:36:10,080 the policy and it lays out the tactical plan and objectives. Now the hedge plan part of 317 00:36:10,080 --> 00:36:16,920 this risk policy is of a competitive nature and it's confidential and it's protected 318 00:36:16,920 --> 00:36:23,640 under statutory exception. Now the other major component of the policy 319 00:36:23,640 --> 00:36:30,160 is the authorized, the list of authorized products that can be traded and the limits associated 320 00:36:30,160 --> 00:36:37,140 with those products and for each role within the organization, how much can a particular 321 00:36:37,140 --> 00:36:44,680 role take on as far as limits and transaction limits. 322 00:36:44,680 --> 00:36:53,980 So some highlights, some of the changes for this year that we'll be asking for. Again, 323 00:36:53,980 --> 00:36:59,720 we're going to, we're going to here, we've been through the risk committee already. This 324 00:36:59,720 --> 00:37:04,760 changes were vetted there. Now we're here at TUV and we'll be at council and then in 325 00:37:04,760 --> 00:37:12,320 a couple of weeks we'll be in the actual approval phase. But these changes were really driven 326 00:37:12,320 --> 00:37:20,820 the bulk of them by the newly identified risks that came along with the winter storm in February. 327 00:37:20,820 --> 00:37:27,080 So we've, in the packet, we provide you a clean and a red line version. And so you can 328 00:37:27,080 --> 00:37:33,680 walk through the two and do some comparisons and see the changes that we're going to ask 329 00:37:33,680 --> 00:37:39,320 for your approval. Again, we recognize that it's, it's a complex, 330 00:37:39,320 --> 00:37:45,520 it's a complex set of parameters in the policy and the hedge plan and we'll be available 331 00:37:45,520 --> 00:37:54,360 to answer any questions you might have. So I will get back to, that is about it for the 332 00:37:54,360 --> 00:38:04,480 slides if I can stop the screen and get me back in and be happy to entertain any questions 333 00:38:04,480 --> 00:38:09,760 that I might be able to answer today. Any questions? We don't want to get detailed 334 00:38:09,760 --> 00:38:14,880 and open session on the hedge plan, but are there any questions other than on that plan? 335 00:38:14,880 --> 00:38:24,520 Does it, doesn't appear to be? Thanks, Clint, I appreciate it. 336 00:38:24,520 --> 00:38:27,480 Thank you, Mr. Cheek. Have a good morning, everyone. 337 00:38:27,480 --> 00:38:33,360 You too. I imagine you're going to hang around for the next item. 338 00:38:33,360 --> 00:38:37,760 If closed, I don't know if close is going to, the close and the zoom is going to let 339 00:38:37,760 --> 00:38:45,240 me do that. I will hear all about it, I'm sure. Thank you. 340 00:38:45,240 --> 00:38:52,280 Okay. Thank you very much. Is there any further discussion? If not, I guess it's time we're 341 00:38:52,280 --> 00:39:03,320 going to convene into closed meeting. Let me go ahead and read this out. Catherine 342 00:39:03,320 --> 00:39:09,680 is that correct? Read it before we go in. Do I just need to read the first paragraph? 343 00:39:09,680 --> 00:39:17,440 Actually, if you could read the entire thing. I'm sorry, I know it's lengthy. 344 00:39:17,440 --> 00:39:25,800 Okay. All right. This is a closed meeting item A, PUB 21-065. Deliberations regarding 345 00:39:25,800 --> 00:39:30,520 certain power, public power utilities, competitive matters under Texas government code section 346 00:39:30,520 --> 00:39:40,860 551.086, consultation with attorneys under Texas government code section 551.071. It's 347 00:39:40,860 --> 00:39:46,560 to receive a presentation from staff regarding public power, competitive and financial matters 348 00:39:46,560 --> 00:39:51,880 about the risks of wholesale energy supply and risk management plans, hedge plans and 349 00:39:51,880 --> 00:39:58,200 strategies as each relates to the DMV electric power and gas portfolio. Discuss, deliberate 350 00:39:58,200 --> 00:40:03,240 and provide input to staff regarding the same. Consultation with the city's attorneys regarding 351 00:40:03,240 --> 00:40:09,000 legal issues associated with the above matters where public discussion of these legal matters 352 00:40:09,000 --> 00:40:14,320 would conflict with the duty of the city's attorneys to the city of Denton and the Denton 353 00:40:14,320 --> 00:40:18,720 city council under the Texas disciplinary rules of professional conduct of the state 354 00:40:18,720 --> 00:40:24,080 bar of Texas or would jeopardize the city's legal position in any administrative proceeding 355 00:40:24,080 --> 00:40:31,040 or potential litigation. And Billy, we should be good to go. I think everybody that's listed 356 00:40:31,040 --> 00:40:32,160 on there, including Smith.