WEBVTT 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 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 00:00:22.400 --> 00:00:27.920 from, or anybody from the public that would like to speak? 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. 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. 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 00:00:45.720 --> 00:00:49.760 E? I'd like to pull C. 00:00:49.760 --> 00:00:58.160 Got C from Karen, Mr. Jumper. I'd like to pull A. 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 00:01:04.560 --> 00:01:09.200 like to make a motion for items B, D, and E for approval? 00:01:09.200 --> 00:01:12.080 I still move. Ms. Russell? 00:01:12.080 --> 00:01:16.960 Second. Second from Mr. Jumper. Any further discussion? 00:01:16.960 --> 00:01:21.720 If not, please vote. All those in favor, please say aye. 00:01:21.720 --> 00:01:25.520 Aye. Any opposed, sign the same. 00:01:25.520 --> 00:01:32.240 Seeing none, the motion passes unanimously. Item A, let's just go in order. Mr. Jumper, 00:01:32.240 --> 00:01:39.800 if you want to ask your questions. Yeah. Let me get this pulled up. Sorry. Okay. 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 00:01:44.720 --> 00:01:56.520 couple seem to be relating to design, and then more recently to engineering services 00:01:56.520 --> 00:02:01.600 and permitting support. So I was just kind of curious, maybe some backstory here. Why 00:02:01.600 --> 00:02:07.960 are we designing so many times? Is that normal? And what is additional services and support? 00:02:07.960 --> 00:02:14.040 So, Mr. Jumper, we should have either Pritam Deshmuth or Stephen Gay with the wastewater 00:02:14.040 --> 00:02:23.360 utility to respond to that. Mr. Chairman, while we're at it, I'm curious, 00:02:23.360 --> 00:02:29.160 it seems that we discussed the construction ads for this Hickory Creek project at our 00:02:29.160 --> 00:02:37.720 last meeting. And I asked if we had already approved the design and the answer appeared 00:02:37.720 --> 00:02:43.920 to be affirmative, but here it appears we are approving the design after we've approved 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 00:02:49.160 --> 00:02:57.880 different things? So good morning. Can you hear me? Yes. 00:02:57.880 --> 00:03:04.000 Hi, good morning. Chair, members of the PUB, Pritam Deshmuth, deputy director for water 00:03:04.000 --> 00:03:09.680 and wastewater. Yeah, there are quite several different things that are going on in this 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 00:03:19.680 --> 00:03:25.400 today if given that option. But the way this contract was set up, it actually includes 00:03:25.400 --> 00:03:31.940 three different components. So we started with the first project, which is the Hickory 00:03:31.940 --> 00:03:40.280 Creek detention facility, which is off of FM 1830 or Country Club Road and Ryan Road 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 00:03:46.520 --> 00:03:53.840 Peak Flow pump station, which was the second amendment for design. It is actually located 00:03:53.840 --> 00:04:01.920 at the treatment facility, the water reclamation plant. And then the third project is the Hickory 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 00:04:09.920 --> 00:04:16.080 are three separate projects that were combined in the same contract. At the time, it was 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, 00:04:21.680 --> 00:04:30.480 if you recall a couple years ago. So right now, the actual amendment for this particular 00:04:30.480 --> 00:04:36.440 project, it is for the lift station. And it is wrapping up several things, creating record 00:04:36.440 --> 00:04:43.640 drawings, providing some construction-related support. We are, as we speak, wrapping up 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 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 00:04:57.840 --> 00:05:03.880 the consultant who had actually designed this. And the last piece was creating some record 00:05:03.880 --> 00:05:09.960 drawings for this. So we are bringing it forward for that lift station amendment. 00:05:09.960 --> 00:05:18.880 Does that answer your question, Mr. Jumper? And Mr. Rybak? 00:05:18.880 --> 00:05:24.880 Question? Hang on a second. Ray, you're muted. 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 00:05:34.680 --> 00:05:42.400 description that the lift station work, this additional design work is for the same lift 00:05:42.400 --> 00:05:50.080 station project that we discussed at our last meeting. Is that correct? 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 00:06:01.880 --> 00:06:08.120 what items were pulled in last time for the contract amendment. 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 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 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 00:06:22.840 --> 00:06:29.440 you getting on that ahead of me. Ms. Russell, you had a question? 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 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 00:06:47.200 --> 00:06:55.480 looking at the previous agenda. It was a construction amendment for the contractor, the actual contractor 00:06:55.480 --> 00:07:02.920 that is constructing. That was brought in front of PUB for additional amendments related 00:07:02.920 --> 00:07:09.360 to the actual construction piece. And this contract is for design amendment. So those 00:07:09.360 --> 00:07:13.440 are two slightly different things. One is with the contractor, one is with our design 00:07:13.440 --> 00:07:23.360 consultant. Yes, sir, I understand that. But I guess my question is, it looks like the 00:07:23.360 --> 00:07:29.520 design came to us after the construction. How could they have a construction ad before 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. 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 00:07:44.240 --> 00:07:48.680 piece, the pump testing, and all the testing that's going to happen after the construction 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, 00:07:54.440 --> 00:07:56.760 correct? Thank you. 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 00:08:03.240 --> 00:08:08.720 and the other construction is due to the heavy growth in that part of the world? 00:08:08.720 --> 00:08:14.080 Correct. The detention facility and the West Peak Flow Pump Station, both of them are due 00:08:14.080 --> 00:08:21.240 to heavy growth and we are creating additional detention for the peak flows. That is correct. 00:08:21.240 --> 00:08:31.280 Okay. Any further questions on this item? If not, would anyone like to make a motion 00:08:31.280 --> 00:08:38.520 to approve item A? So moved. 00:08:38.520 --> 00:08:43.280 I'll take Lee's there and Karen is a second. I'll second, yeah. 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. 00:08:49.800 --> 00:08:57.240 Aye. Any opposed? None the same. There is none. It passes unanimously. Moving on to 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 00:09:02.760 --> 00:09:12.200 to commend city staff for incorporating the dark sky guidelines into the contract with 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 00:09:21.320 --> 00:09:28.280 their guidelines for lighting and the payoff is pretty big, both for people who like to 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 00:09:35.020 --> 00:09:43.440 your streetlights down and just being cognizant of that and incorporating that into your streetlight 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 00:09:48.800 --> 00:09:54.560 the staff for being aware of that program and incorporating that into their request 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 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 00:10:13.440 --> 00:10:23.200 approve. Is there a second? Okay. Barbara, Ms. Russell has a second. Any further discussion? 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 00:10:30.640 --> 00:10:34.640 that this one has passed unanimously. That was consent agenda item C. We are done with 00:10:34.640 --> 00:10:48.120 the consent agenda. We'll move on to items for individual consideration. Item A, consider 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. 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 00:11:10.280 --> 00:11:14.440 construction division manager. We'll be doing a short presentation here. If you'll give 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 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. 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 00:11:56.920 --> 00:12:24.840 out. Are you unmuted? I broke it. I want you to un-share it real quick. 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, 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 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 00:12:59.480 --> 00:13:09.200 is the findings from the RFP 7633 for underground electric installation. This will be presented 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 00:13:14.360 --> 00:13:24.680 council agenda. A background of the city's utilization of contractors. We have utilized 00:13:24.680 --> 00:13:31.460 contractors for installation of underground utilities since 2000, which we were given 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 00:13:37.400 --> 00:13:43.240 of our new subdivisions, and our downtown area converted to underground. So that's what 00:13:43.240 --> 00:13:50.540 we did. At this time, we have approximately 57% of all the electric distribution system 00:13:50.540 --> 00:13:58.720 that has been installed underground. We utilize contractors. I call it for the fluff, for 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 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 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 00:14:22.560 --> 00:14:35.880 have been installed by underground contractor. So we've utilized them quite a lot. Hold on 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 00:14:46.580 --> 00:14:53.520 Boulevard out towards Wynco distribution center. This was a major project where we installed 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 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 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 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 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 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 00:15:32.760 --> 00:15:39.600 build a temporary pole line overhead so that we could service them during the construction 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, 00:15:49.360 --> 00:15:56.080 we have 35 different underground distribution projects in various phases already engineered 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. 00:16:02.680 --> 00:16:08.840 Country Club Estates, Bonnie Bray Phase Five is a major ordeal out by Apogee Stadium for 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 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 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 00:16:28.320 --> 00:16:42.120 line down Barthold Road for the future conversion of 1173. So now forecasted projects. 84 residential 00:16:42.120 --> 00:16:49.100 and commercial projects are in various stages of designing and engineering. 31 feeder extensions 00:16:49.100 --> 00:16:56.800 are also in engineering design. Some of those projects include all of the I-35 widening 00:16:56.800 --> 00:17:01.800 projects. We have eight of them that will be underground and some portions of it will 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 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 00:17:15.240 --> 00:17:26.680 Street substation, which will be a gas insulated substation. Request for proposals were sent 00:17:26.680 --> 00:17:36.200 out to 455 prospective suppliers. We did receive five proposals in. We evaluated them on their 00:17:36.200 --> 00:17:44.600 price, the schedules, the compliance with specification and indicators of probable performance. 00:17:44.600 --> 00:17:49.480 Once we narrowed it down, we conducted the best and final offer and clarified line item 00:17:49.480 --> 00:17:57.280 pricing. And FX5 utility, who is our current contractor, was ranked the highest and determined 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 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 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 00:18:21.780 --> 00:18:29.440 spend and approved distribution projects budgeted. Like, as I stated before, the contractor was 00:18:29.440 --> 00:18:37.920 the lowest cost respondent with also the highest evaluated score. Any questions? 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 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 00:18:58.160 --> 00:19:03.680 some of Montecito that had the underground lines that we had so much trouble with several 00:19:03.680 --> 00:19:05.000 years ago? 00:19:05.000 --> 00:19:11.360 That project has actually been completed, Billy. That project is done. The maintenance crew 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 00:19:18.240 --> 00:19:19.240 that project. 00:19:19.240 --> 00:19:22.520 Very good. I know y'all had a lot of problems out there. 00:19:22.520 --> 00:19:25.040 We did. We did. And it's helped us. 00:19:25.040 --> 00:19:27.040 It made your beard gray. 00:19:27.040 --> 00:19:30.280 It does. You're exactly right. 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 00:19:38.920 --> 00:19:45.280 a year of expenditures for this underground work over the next five year period. 00:19:45.280 --> 00:19:46.280 That's correct. 00:19:46.280 --> 00:19:51.800 Okay. So you've got, you said you had like 35 open distribution projects currently? 00:19:51.800 --> 00:19:54.320 Currently that are underground projects. 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 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 00:20:09.000 --> 00:20:11.440 think we're pretty comfortable where we are. 00:20:11.440 --> 00:20:18.040 Understood. Will the Hunter Coal Ranch be a separate project in and of itself as opposed 00:20:18.040 --> 00:20:25.020 to this many underground distribution conversions you're currently in the midst of? 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 00:20:30.080 --> 00:20:35.600 that there is another substation, an Underwood substation that is forecast for out in that 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 00:20:41.840 --> 00:20:42.840 in all of this. 00:20:42.840 --> 00:20:47.760 Oh, it sounds like you've got lots of fun stuff ahead of you. 00:20:47.760 --> 00:20:51.640 We do. Looking forward to it. 00:20:51.640 --> 00:20:53.600 Thank you. 00:20:53.600 --> 00:21:00.720 Will this contract allow you to escalate some of those dollar amounts forward to you? Like 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 00:21:05.120 --> 00:21:07.160 and year one? 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 00:21:13.560 --> 00:21:14.560 the five year. 00:21:14.560 --> 00:21:21.920 Okay, that's good. Because, you know, obviously, the faster this happens, the better on everybody. 00:21:21.920 --> 00:21:22.920 Correct. 00:21:22.920 --> 00:21:26.720 Any other board members with any other questions? 00:21:26.720 --> 00:21:32.080 We'll entertain a motion to approve. 00:21:32.080 --> 00:21:41.460 Karen raised your hand. I'll take that as a motion to approve. 00:21:41.460 --> 00:21:42.460 I'll second. 00:21:42.460 --> 00:21:49.920 Second from Mr. Jumper. Any further discussion? If not, all those in favor, please say aye. 00:21:49.920 --> 00:21:50.920 Aye. 00:21:50.920 --> 00:21:54.360 Aye. Any opposed, sign the setting. 00:21:54.360 --> 00:21:59.200 There is none. It passes unanimously. Thank you, Mr. Pax. 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, 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 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. 00:22:16.360 --> 00:22:17.360 Thank you, Tony. 00:22:17.360 --> 00:22:19.920 Yep, we're glad you're still here. 00:22:19.920 --> 00:22:21.800 Me too, Billy. 00:22:21.800 --> 00:22:24.160 Congratulations on your long term of service. 00:22:24.160 --> 00:22:26.000 You bet. Thank you. 00:22:26.000 --> 00:22:33.880 All right. We'll move on to Individual Item C, Management Reports. 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 00:22:40.320 --> 00:22:45.120 first item that we have listed on here is the Service Assistance Program Clarification. 00:22:45.120 --> 00:22:52.280 If you recall, Eugene McKinney from Solid Waste made a presentation that was a follow-up, 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 00:22:57.840 --> 00:23:01.480 see if anyone has any questions on that item. 00:23:01.480 --> 00:23:03.760 Any questions? 00:23:03.760 --> 00:23:11.600 Okay, so the next item is our deck dashboard for month ending February. Nick Benson is 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 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 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 00:23:26.800 --> 00:23:35.880 hoped because of the 48-hour shutdown that we had, but again, pretty large impact there 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 00:23:40.320 --> 00:23:46.080 side of the ledger. But any questions on that? 00:23:46.080 --> 00:23:57.920 Yeah, I noticed the high runtimes for August 2020 and February 2021, which made perfect 00:23:57.920 --> 00:24:11.260 sense. I'm just not remembering what happened in October 2020 to make those runtimes high. 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 00:24:17.080 --> 00:24:23.320 be able to predict the sorts of things that are going to create a demand. 00:24:23.320 --> 00:24:28.280 Yeah, and Terry Nolte is here. He can speak to that. Terry? 00:24:28.280 --> 00:24:39.480 Yes. Good morning, PB members. Mr. Vinnie, in October of this past year, we had abnormally 00:24:39.480 --> 00:24:48.720 warm weather and the deck did run significantly more than we anticipated. You recall, we had 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 00:24:54.600 --> 00:24:59.560 being very hot as well. So that's the reason why we had those high runtimes. 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. 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. 00:25:14.240 --> 00:25:23.360 So by October, I think we're usually assuming mild weather and low runtimes. So anyway, 00:25:23.360 --> 00:25:26.960 that's all. Thank you. Thank you, Terry. 00:25:26.960 --> 00:25:30.880 I think Mr. Rybak has a question, Billy. Oh, I'm sorry. Go ahead, Billy. 00:25:30.880 --> 00:25:38.240 No problem. Thank you. I'm wondering, the report notes that the energy center produced 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 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 00:25:56.200 --> 00:26:02.400 high price of power? Yeah, the short answer is, yes, absolutely. 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 00:26:06.400 --> 00:26:13.440 have almost half the year left here. And so any additional revenue that's recognized through 00:26:13.440 --> 00:26:17.680 the deck will continue to offset that purchase power expense. Obviously, we're also going 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 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 00:26:26.640 --> 00:26:29.880 about. Right. That was my question. So I guess we'll 00:26:29.880 --> 00:26:32.680 know better later in the year. Yes, sir. 00:26:32.680 --> 00:26:37.240 Thank you. Thank you, lady. Thank you, Tony. 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 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 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, 00:26:54.000 --> 00:26:58.280 everything remains as we discussed with the community. The one thing that we have changed 00:26:58.280 --> 00:27:04.120 is we've now basically moving forward with a basically a design build process for for 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 00:27:10.200 --> 00:27:13.920 questions you have, they'll be happy to go through that with you. 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 00:27:22.020 --> 00:27:27.760 now they're thinking. Pretty nice looking number. It's from a few years ago. 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 00:27:36.640 --> 00:27:42.840 agenda items. Certainly, we have the budget and rates presentations here coming to you 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 00:27:50.280 --> 00:27:55.640 major utilities, but certainly, you know, solid waste as well. And, and in customer 00:27:55.640 --> 00:28:00.280 service will also come to you because they're primarily funded or they're primarily funded 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 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 00:28:11.060 --> 00:28:16.840 left over one solid waste that will come back to you when we complete the comprehensive 00:28:16.840 --> 00:28:22.560 solid waste management, you know, study and review. And then the question from Mr. Soap 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 00:28:28.840 --> 00:28:34.280 presentation when we come to you with DME's budget and, and hopefully have some conversations 00:28:34.280 --> 00:28:38.400 with you about that, just the overall solar programs along with other programs or what 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 00:28:42.560 --> 00:28:48.440 answer any questions anyone they have on any of those. Any other questions or new business 00:28:48.440 --> 00:28:58.000 action items as well? Suggestions, requests? And we're hearing none. And Billy before, 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 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 00:29:09.220 --> 00:29:18.640 rules of orders in order. Move approval of the minutes from April 26, 2021. Approve approval. 00:29:18.640 --> 00:29:28.440 Motion to approve. Ms. Russell. Second from Mr. Jumper. All those in favor, please say 00:29:28.440 --> 00:29:36.040 aye. Aye. Aye. Any opposed, sign the same. Hearing none, move on to concluding items, 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 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 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 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 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 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 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 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 00:30:36.160 --> 00:30:43.280 with them, study them. And if you have some further questions at the individual consideration, 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 00:30:50.360 --> 00:31:12.280 going to attempt technology's fate here and share my screen with you. And can everyone 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? 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 00:31:31.860 --> 00:31:37.920 is a document that lays out the parameters of how the organization manages this risk. 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 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 00:31:48.860 --> 00:32:00.400 also provides minimum reporting requirements. Why does DME need a risk policy? Well, DME 00:32:00.400 --> 00:32:07.120 as a city-owned enterprise is a substantial operation. It is the sixth largest municipal 00:32:07.120 --> 00:32:14.600 utility in Texas. The activity it handles really deserves an organized policy on how 00:32:14.600 --> 00:32:22.600 to manage the risk for trade payers. The risk policy was developed several years ago, and 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 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 00:32:35.800 --> 00:32:42.540 weather event in February has made this year, of course, a very atypical year. That same 00:32:42.540 --> 00:32:50.100 event introduced a multiple set of uncontrollable variables, and these things were outside of 00:32:50.100 --> 00:32:57.880 normal market conditions that any utility would prudently plan for. And so that impact 00:32:57.880 --> 00:33:05.240 of the event was $140 million, as I think everyone here knows. And it really redefined 00:33:05.240 --> 00:33:16.640 the risk profile that DME and really all Texas utilities must plan for. The governance requirements 00:33:16.640 --> 00:33:26.840 of the risk policy, annually the policy is reviewed by the risk committee, then of course 00:33:26.840 --> 00:33:32.120 here BUB. Ultimately, it's approved by the council with changes if changes are required. 00:33:32.120 --> 00:33:39.440 And we do have some changes this year, of course. These changes are largely in reaction 00:33:39.440 --> 00:33:47.360 to the February event, to address those in a changing landscape of our risk profile. 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 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 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 00:34:10.960 --> 00:34:17.040 a meeting that consists of additional people from finance. It could be additional people 00:34:17.040 --> 00:34:28.240 from actually the city's risk division itself and others from the EMO as well. 00:34:28.240 --> 00:34:40.960 Now, some of the highlights of the risk policy, this really provides a high level listing 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. 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 00:34:54.120 --> 00:35:01.800 this documents are very technical and for some of you, it's an actual introduction to 00:35:01.800 --> 00:35:10.400 the processes that we have. The major provisions of the policy or a separation 00:35:10.400 --> 00:35:19.440 of the roles and duties and controls that are within the DME organization around this activity 00:35:19.440 --> 00:35:27.540 and the policy delineates the reporting as being required. The two key daily reports 00:35:27.540 --> 00:35:34.320 that we have or the daily position reports and the credit exposure reports, and those 00:35:34.320 --> 00:35:41.800 are produced every day by the middle office. And that's independent from the deal makers, 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 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 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 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 00:36:10.080 --> 00:36:16.920 this risk policy is of a competitive nature and it's confidential and it's protected 00:36:16.920 --> 00:36:23.640 under statutory exception. Now the other major component of the policy 00:36:23.640 --> 00:36:30.160 is the authorized, the list of authorized products that can be traded and the limits associated 00:36:30.160 --> 00:36:37.140 with those products and for each role within the organization, how much can a particular 00:36:37.140 --> 00:36:44.680 role take on as far as limits and transaction limits. 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, 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 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 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 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. 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 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 00:37:33.680 --> 00:37:39.320 for your approval. Again, we recognize that it's, it's a complex, 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 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 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 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 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? 00:38:14.880 --> 00:38:24.520 Does it, doesn't appear to be? Thanks, Clint, I appreciate it. 00:38:24.520 --> 00:38:27.480 Thank you, Mr. Cheek. Have a good morning, everyone. 00:38:27.480 --> 00:38:33.360 You too. I imagine you're going to hang around for the next item. 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 00:38:37.760 --> 00:38:45.240 me do that. I will hear all about it, I'm sure. Thank you. 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 00:38:52.280 --> 00:39:03.320 going to convene into closed meeting. Let me go ahead and read this out. Catherine 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? 00:39:09.680 --> 00:39:17.440 Actually, if you could read the entire thing. I'm sorry, I know it's lengthy. 00:39:17.440 --> 00:39:25.800 Okay. All right. This is a closed meeting item A, PUB 21-065. Deliberations regarding 00:39:25.800 --> 00:39:30.520 certain power, public power utilities, competitive matters under Texas government code section 00:39:30.520 --> 00:39:40.860 551.086, consultation with attorneys under Texas government code section 551.071. It's 00:39:40.860 --> 00:39:46.560 to receive a presentation from staff regarding public power, competitive and financial matters 00:39:46.560 --> 00:39:51.880 about the risks of wholesale energy supply and risk management plans, hedge plans and 00:39:51.880 --> 00:39:58.200 strategies as each relates to the DMV electric power and gas portfolio. Discuss, deliberate 00:39:58.200 --> 00:40:03.240 and provide input to staff regarding the same. Consultation with the city's attorneys regarding 00:40:03.240 --> 00:40:09.000 legal issues associated with the above matters where public discussion of these legal matters 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 00:40:14.320 --> 00:40:18.720 city council under the Texas disciplinary rules of professional conduct of the state 00:40:18.720 --> 00:40:24.080 bar of Texas or would jeopardize the city's legal position in any administrative proceeding 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 00:40:31.040 --> 00:40:32.160 on there, including Smith.