1 00:00:00,000 --> 00:00:10,080 Okay, it is 902 on May 24th, so we're called to get to order the three of Denton Public 2 00:00:10,080 --> 00:00:12,920 Utilities Board meeting. 3 00:00:12,920 --> 00:00:18,560 We do have a quorum, but Mr. Rebeck is trying to get back on so you can see him. 4 00:00:18,560 --> 00:00:24,480 The first item is the consent agenda. 5 00:00:24,480 --> 00:00:25,480 Can we hear your voice? 6 00:00:25,480 --> 00:00:26,480 Can you speak? 7 00:00:26,480 --> 00:00:30,180 I know you said you wanted to pull item A, correct? 8 00:00:30,180 --> 00:00:31,960 Yes, ma'am. 9 00:00:31,960 --> 00:00:32,960 Okay. 10 00:00:32,960 --> 00:00:36,680 Does any other board member wish to pull an item? 11 00:00:36,680 --> 00:00:37,680 Item E. 12 00:00:37,680 --> 00:00:38,680 Yes, ma'am. 13 00:00:38,680 --> 00:00:39,680 E. 14 00:00:39,680 --> 00:00:40,680 E is an echo. 15 00:00:40,680 --> 00:00:41,680 E is an echo. 16 00:00:41,680 --> 00:00:42,680 Got it. 17 00:00:42,680 --> 00:00:43,680 Anything else? 18 00:00:43,680 --> 00:00:48,120 Alrighty then, I'm going to go ahead and try to reboot and get my video back. 19 00:00:48,120 --> 00:00:57,720 Okay, so then, well, first we'll approve items B, C, D, F, G, H, I. 20 00:00:57,720 --> 00:01:04,320 I know my elf of that, but we have a motion to approve those items. 21 00:01:04,320 --> 00:01:06,320 Motion to approve, move. 22 00:01:06,320 --> 00:01:07,320 Second. 23 00:01:07,320 --> 00:01:08,320 Was that you, Billy? 24 00:01:08,320 --> 00:01:09,320 Yes. 25 00:01:09,320 --> 00:01:10,320 Okay. 26 00:01:10,320 --> 00:01:11,320 And Barbara, second. 27 00:01:11,320 --> 00:01:13,040 All in favor say aye. 28 00:01:13,040 --> 00:01:14,040 Aye. 29 00:01:14,040 --> 00:01:15,040 Aye. 30 00:01:15,040 --> 00:01:16,040 Opposed? 31 00:01:16,040 --> 00:01:20,880 Why don't we take item E first, since Lee is still having an issue? 32 00:01:20,880 --> 00:01:21,880 Thank you, ma'am. 33 00:01:21,880 --> 00:01:22,880 I'll be right back. 34 00:01:22,880 --> 00:01:28,320 And Susan, before you go there, I think we skipped the item A on the agenda. 35 00:01:28,320 --> 00:01:31,080 I don't know if there's any public comment or not. 36 00:01:31,080 --> 00:01:35,040 Oh, oh, I am so sorry. 37 00:01:35,040 --> 00:01:36,040 Yes. 38 00:01:36,040 --> 00:01:39,040 Let's go back to that. 39 00:01:39,040 --> 00:01:44,560 Is there anyone on? 40 00:01:44,560 --> 00:01:45,560 I didn't hear you, Susan. 41 00:01:45,560 --> 00:01:46,560 Anybody? 42 00:01:46,560 --> 00:01:51,880 Is there anybody on the phone for public comment? 43 00:01:51,880 --> 00:01:57,040 Let's not be. 44 00:01:57,040 --> 00:01:58,040 Can people hear me? 45 00:01:58,040 --> 00:02:01,040 Billy or tech staff, are you aware? 46 00:02:01,040 --> 00:02:03,560 Yes, ma'am. 47 00:02:03,560 --> 00:02:08,280 Let us check real quick, Susan. 48 00:02:08,280 --> 00:02:09,280 Okay. 49 00:02:09,280 --> 00:02:10,280 Okay. 50 00:02:10,280 --> 00:02:11,280 Thank you. 51 00:02:11,280 --> 00:02:14,280 Thank you for reminding me. 52 00:02:14,280 --> 00:02:17,280 Thank you. 53 00:02:17,280 --> 00:02:22,280 Thank you. 54 00:02:22,280 --> 00:02:45,280 Thank you. 55 00:02:52,280 --> 00:03:06,280 , sir. 56 00:03:06,280 --> 00:03:28,360 Susan, we don't believe that we have anyone online, but if there is someone, we'll come 57 00:03:28,360 --> 00:03:29,360 back to you. 58 00:03:29,360 --> 00:03:31,400 But we don't believe there's anyone. 59 00:03:31,400 --> 00:03:32,400 Absolutely. 60 00:03:32,400 --> 00:03:33,400 Thank you. 61 00:03:33,400 --> 00:03:34,400 All right. 62 00:03:34,400 --> 00:03:38,040 Let's move on to item B. What was your question, Ben? 63 00:03:38,040 --> 00:03:39,040 Yeah. 64 00:03:39,040 --> 00:03:42,200 I had a couple of things. 65 00:03:42,200 --> 00:03:49,560 So if I understand right, Aeropur is, I guess, is that the product is basically just sprayed 66 00:03:49,560 --> 00:03:52,080 onto the area, correct? 67 00:03:52,080 --> 00:03:55,840 We have Brian Burner on the line. 68 00:03:55,840 --> 00:03:57,600 This is Brian Burner. 69 00:03:57,600 --> 00:03:58,600 Can you hear me? 70 00:03:58,600 --> 00:03:59,600 Yes. 71 00:03:59,600 --> 00:04:00,600 Okay. 72 00:04:00,600 --> 00:04:01,600 Yeah. 73 00:04:01,600 --> 00:04:02,600 Brian Burner, solid waste director. 74 00:04:02,600 --> 00:04:03,600 I appreciate the question. 75 00:04:03,600 --> 00:04:13,120 The Aeropur system is, it's what we call a low volume, high pressure system. 76 00:04:13,120 --> 00:04:15,800 So it's actually aspirated into the atmosphere. 77 00:04:15,800 --> 00:04:21,480 So it's not sprayed on like you might spray on with a spray bottle or a aerosol can. 78 00:04:21,480 --> 00:04:27,480 It's actually put into the air and used to capture odor molecules and destroy them. 79 00:04:27,480 --> 00:04:34,160 It is a sole source product and it's very effective at controlling landfill odors. 80 00:04:34,160 --> 00:04:35,160 Okay. 81 00:04:35,160 --> 00:04:41,680 So to follow up on that, what kind of environmental impact or even health impact might we expect 82 00:04:41,680 --> 00:04:42,680 from that? 83 00:04:42,680 --> 00:04:53,280 Well, based on the information we get from the manufacturer, there is minimal impacts 84 00:04:53,280 --> 00:05:00,880 to the surrounding community and to the environment in that, from what I understand, when it meets 85 00:05:00,880 --> 00:05:07,280 with the odors, it destroys them and at the end of the day, it ends up reducing itself 86 00:05:07,280 --> 00:05:08,920 down biologically. 87 00:05:08,920 --> 00:05:10,400 Okay. 88 00:05:10,400 --> 00:05:17,440 Finally, as I was digging through the paperwork there, documentation, it looks like there's 89 00:05:17,440 --> 00:05:23,400 multiple flavors of the spray, I guess what it smells like that costs different things. 90 00:05:23,400 --> 00:05:27,720 Is there any reason we settled on the berry flavor, which is, I think I saw that. 91 00:05:27,720 --> 00:05:28,720 Is that correct? 92 00:05:28,720 --> 00:05:35,440 I believe that is correct and again, based on the offensive net for lack of a better 93 00:05:35,440 --> 00:05:44,800 term, just what the odor is, while it is considered quote unquote berry flavored, it is aesthetically 94 00:05:44,800 --> 00:05:46,640 neutral in the area. 95 00:05:46,640 --> 00:05:52,040 So it's not an overwhelming, it's not like you're standing in a berry patch, mind you. 96 00:05:52,040 --> 00:05:54,560 It basically smells neutral in the area. 97 00:05:54,560 --> 00:05:55,560 Very good. 98 00:05:55,560 --> 00:05:56,560 Thank you. 99 00:05:56,560 --> 00:05:57,560 Okay. 100 00:05:57,560 --> 00:05:58,840 And Barbara, did you have a question also? 101 00:05:58,840 --> 00:06:01,560 No, I thought item A had been pulled. 102 00:06:01,560 --> 00:06:02,920 That's the reason I didn't say anything. 103 00:06:02,920 --> 00:06:10,040 I guess they said it was pulled, but Lee pulled it and he wasn't on. 104 00:06:10,040 --> 00:06:14,000 We couldn't see him visually, so that's why we just rearranged it. 105 00:06:14,000 --> 00:06:16,960 I had a question on that one. 106 00:06:16,960 --> 00:06:17,960 On item A? 107 00:06:17,960 --> 00:06:18,960 Yes. 108 00:06:18,960 --> 00:06:19,960 Okay. 109 00:06:19,960 --> 00:06:20,960 All right. 110 00:06:20,960 --> 00:06:22,840 Any further questions for item E? 111 00:06:22,840 --> 00:06:26,520 Do we have a motion to approve item E? 112 00:06:26,520 --> 00:06:28,880 I'll move. 113 00:06:28,880 --> 00:06:29,880 Thank you. 114 00:06:29,880 --> 00:06:30,880 And the second? 115 00:06:30,880 --> 00:06:31,880 Is that you, Ben? 116 00:06:31,880 --> 00:06:32,880 Ben, second. 117 00:06:32,880 --> 00:06:34,280 All in favor say aye. 118 00:06:34,280 --> 00:06:35,280 Aye. 119 00:06:35,280 --> 00:06:36,280 Aye. 120 00:06:36,280 --> 00:06:37,280 Opposed? 121 00:06:37,280 --> 00:06:38,280 Okay. 122 00:06:38,280 --> 00:06:39,760 Back to item A. Lee. 123 00:06:39,760 --> 00:06:42,920 Thank you, ma'am, for your consideration on that. 124 00:06:42,920 --> 00:06:52,000 It seems like everything worked this time, so the item in question was for the Archer 125 00:06:52,000 --> 00:06:55,960 contingent energy risk outage insurance. 126 00:06:55,960 --> 00:07:01,560 I would just like a little explanation, if possible, about what that is, how it works. 127 00:07:01,560 --> 00:07:05,920 I did read the attached materials, but I found myself a little confused as to whether it 128 00:07:05,920 --> 00:07:09,960 was a plus, a minus, or both. 129 00:07:09,960 --> 00:07:12,080 We got Terry Nolte on the line. 130 00:07:12,080 --> 00:07:17,880 Good morning, PUB, Terry Nolte, Assistant General Manager. 131 00:07:17,880 --> 00:07:23,040 I do have a quick presentation I can run through, Mr. Rybak, if that would help you. 132 00:07:23,040 --> 00:07:24,040 I think it would. 133 00:07:24,040 --> 00:07:25,040 Thank you. 134 00:07:25,040 --> 00:07:26,040 Okay. 135 00:07:26,040 --> 00:07:32,040 Let me share. 136 00:07:32,040 --> 00:07:39,160 Okay. 137 00:07:39,160 --> 00:07:43,440 Can everyone see that? 138 00:07:43,440 --> 00:07:44,440 Yes, sir. 139 00:07:44,440 --> 00:07:45,440 Okay. 140 00:07:45,440 --> 00:07:53,440 So, you know, basically the policy is to provide protection in the event of forced outages 141 00:07:53,440 --> 00:07:57,280 during the summer month when we see high prices. 142 00:07:57,280 --> 00:08:07,160 This is different from the property insurance that was before you at your last meeting and 143 00:08:07,160 --> 00:08:09,840 that the Council approved last week. 144 00:08:09,840 --> 00:08:17,000 Property insurance would cover the loss of the deck from a property like a storm or something 145 00:08:17,000 --> 00:08:21,160 like that that would actually destroy the facility or a fire. 146 00:08:21,160 --> 00:08:29,440 This particular type of insurance basically is a financial settlement that provides the 147 00:08:29,440 --> 00:08:34,400 difference between the operating costs of the generator and the market price in the 148 00:08:34,400 --> 00:08:38,600 event of a forced outage. 149 00:08:38,600 --> 00:08:46,460 So we have a requirement within the energy risk management policy to procure this. 150 00:08:46,460 --> 00:08:54,120 We will also be procuring similar product for the winter, January, February, and that 151 00:08:54,120 --> 00:08:57,640 will be done in the December timeframe. 152 00:08:57,640 --> 00:09:02,600 So this will be back in front of you again for the winter. 153 00:09:02,600 --> 00:09:08,700 So these are the types of events that the outage insurance covers. 154 00:09:08,700 --> 00:09:11,920 Most importantly, loss of fuel. 155 00:09:11,920 --> 00:09:17,040 We don't expect that in the summer, but that was obviously the issue that got us in the 156 00:09:17,040 --> 00:09:19,360 winter. 157 00:09:19,360 --> 00:09:26,440 Any type of control system failures, any type of cooling water system failures. 158 00:09:26,440 --> 00:09:34,820 And so the way that the policy works is there is a deductible amount. 159 00:09:34,820 --> 00:09:42,040 So for the first hour, we have 12 units each rated at 18.75 megawatts. 160 00:09:42,040 --> 00:09:48,760 We would have a deductible amount in the first hour of 18.75 megawatts before the policy 161 00:09:48,760 --> 00:09:50,360 would kick in. 162 00:09:50,360 --> 00:09:56,520 And as I said, the settlement basis is the difference between the spot hourly clearing 163 00:09:56,520 --> 00:09:58,800 price and established price. 164 00:09:58,800 --> 00:10:07,020 So in the example here, if our established price was $50 and the clearing price was $5,000, 165 00:10:07,020 --> 00:10:11,880 then you see what the settlement would be. 166 00:10:11,880 --> 00:10:19,000 The maximum payout that we're suggesting during this term is $18.5 million. 167 00:10:19,000 --> 00:10:27,440 The premium is $629,550 through somewhere up to as high as $800,000. 168 00:10:27,440 --> 00:10:33,240 And that is determined by the market on the day that we bind the coverage because it's 169 00:10:33,240 --> 00:10:40,200 based upon the forward price of energy for that June through September period. 170 00:10:40,200 --> 00:10:41,200 It is an increased issue. 171 00:10:41,200 --> 00:10:49,160 >> If I may, sir, so what we're looking at here, this is the typical summer, I don't 172 00:10:49,160 --> 00:10:53,320 know if adjustment's the right word, but insurance policy. 173 00:10:53,320 --> 00:10:59,420 So we will be reconsidering or you will be representing something similar for the upcoming 174 00:10:59,420 --> 00:11:01,720 winter later this year. 175 00:11:01,720 --> 00:11:03,160 >> That is correct. 176 00:11:03,160 --> 00:11:04,160 >> Okay. 177 00:11:04,160 --> 00:11:10,520 So just from my understanding, had we had such insurance in force last winter, we would 178 00:11:10,520 --> 00:11:14,840 have received a settlement as you describe here on this page. 179 00:11:14,840 --> 00:11:15,840 >> Yes. 180 00:11:15,840 --> 00:11:18,360 Whatever -- >> I'm sorry to interrupt. 181 00:11:18,360 --> 00:11:20,720 Can you pull the presentation down? 182 00:11:20,720 --> 00:11:23,720 >> Yes, ma'am. 183 00:11:23,720 --> 00:11:26,480 >> Thank you. 184 00:11:26,480 --> 00:11:27,480 Go ahead. 185 00:11:27,480 --> 00:11:28,480 >> Oh, I'm sorry. 186 00:11:28,480 --> 00:11:37,000 I thought you had -- yes, so Mr. Ryback, yes, so if we had had that policy in place, whatever 187 00:11:37,000 --> 00:11:44,920 the deductibles were, we would have obviously incurred the deductible before the payout 188 00:11:44,920 --> 00:11:45,920 would have occurred. 189 00:11:45,920 --> 00:11:50,140 But then whatever the max cap would have been, that's what we would have received. 190 00:11:50,140 --> 00:11:55,080 So in this particular example, had we had this policy in place, we'd have collected 191 00:11:55,080 --> 00:11:56,080 $18.75 million. 192 00:11:56,080 --> 00:11:57,080 >> Mm-hmm. 193 00:11:57,080 --> 00:11:58,080 >> Okay. 194 00:11:58,080 --> 00:12:04,120 Which obviously wouldn't have covered the total shortfall, but it would have been of 195 00:12:04,120 --> 00:12:05,120 some benefit. 196 00:12:05,120 --> 00:12:06,120 >> Correct. 197 00:12:06,120 --> 00:12:07,120 >> Okay. 198 00:12:07,120 --> 00:12:09,440 Well, this is probably why I didn't understand. 199 00:12:09,440 --> 00:12:13,680 I thought the insurance was for both, the winter and the summer, but this was only for 200 00:12:13,680 --> 00:12:14,680 the summer. 201 00:12:14,680 --> 00:12:15,680 Okay. 202 00:12:15,680 --> 00:12:16,680 So thank you for the clarification. 203 00:12:16,680 --> 00:12:17,680 I appreciate it. 204 00:12:17,680 --> 00:12:18,680 >> No problem. 205 00:12:18,680 --> 00:12:19,680 >> Any other questions? 206 00:12:19,680 --> 00:12:22,320 >> And, Barbara, you had a question. 207 00:12:22,320 --> 00:12:23,320 Correct. 208 00:12:23,320 --> 00:12:26,200 >> Well, that -- I just wanted to hear that explanation. 209 00:12:26,200 --> 00:12:27,200 That was my question. 210 00:12:27,200 --> 00:12:28,200 >> Okay. 211 00:12:28,200 --> 00:12:30,920 And then, Billy, you had your hand up. 212 00:12:30,920 --> 00:12:37,800 And Terry, the question is, what is outstanding, what would not be covered, what kind of outage 213 00:12:37,800 --> 00:12:47,380 would not be covered? 214 00:12:47,380 --> 00:12:49,040 >> Pretty much covers anything. 215 00:12:49,040 --> 00:12:53,880 I'm trying to think of something, Mr. Chief, but I can't think of anything that would not 216 00:12:53,880 --> 00:12:54,880 be covered. 217 00:12:54,880 --> 00:12:58,400 We try to write the policies as broadly as possible. 218 00:12:58,400 --> 00:13:05,960 I guess, you know, a force majeure event could -- you know, a tornado or something that destroyed 219 00:13:05,960 --> 00:13:09,640 a unit might not be covered. 220 00:13:09,640 --> 00:13:16,440 But again, we've tried to keep it as broad as possible in order to include as many things 221 00:13:16,440 --> 00:13:18,040 as we possibly can. 222 00:13:18,040 --> 00:13:19,040 >> Okay. 223 00:13:19,040 --> 00:13:27,520 Of course, I'm sure the insurance company is pretty well versed with our air permit, 224 00:13:27,520 --> 00:13:31,200 so they're aware of what our limitations are there, too. 225 00:13:31,200 --> 00:13:32,200 >> Yes, sir. 226 00:13:32,200 --> 00:13:37,560 There's an exhaust of due diligence process that we go through with the policy -- with 227 00:13:37,560 --> 00:13:42,960 the carriers on this particular insurance coverage. 228 00:13:42,960 --> 00:13:48,240 It takes us -- you know, they review all of our outage information, all of our permit 229 00:13:48,240 --> 00:13:55,640 information, our maintenance history, all that before they offer the premium for the 230 00:13:55,640 --> 00:13:57,800 policy. 231 00:13:57,800 --> 00:13:58,800 >> Okay. 232 00:13:58,800 --> 00:13:59,800 Thank you. 233 00:13:59,800 --> 00:14:00,800 >> Other questions? 234 00:14:00,800 --> 00:14:01,800 All right. 235 00:14:01,800 --> 00:14:05,520 Do we have a motion to approve item A? 236 00:14:05,520 --> 00:14:08,840 >> I move approval. 237 00:14:08,840 --> 00:14:09,840 >> Seconded by Lee. 238 00:14:09,840 --> 00:14:11,840 All in favor, say aye. 239 00:14:11,840 --> 00:14:12,840 >> Aye. 240 00:14:12,840 --> 00:14:13,840 >> Opposed? 241 00:14:13,840 --> 00:14:17,960 Earlier, I forgot to mention that we are pulling the work session item. 242 00:14:17,960 --> 00:14:23,640 They are not prepared with everything for today, so before we go into items for individual 243 00:14:23,640 --> 00:14:27,160 consideration, I wanted to have that item pulled. 244 00:14:27,160 --> 00:14:33,680 And also we have a closed session that is available to us only if we have somebody who 245 00:14:33,680 --> 00:14:39,800 has questions on item B. So will somebody have any questions on the hedge plan for item 246 00:14:39,800 --> 00:14:40,800 B? 247 00:14:40,800 --> 00:14:41,800 Okay. 248 00:14:41,800 --> 00:14:46,560 I see none, so we don't need to go into a closed session. 249 00:14:46,560 --> 00:14:47,560 Okay. 250 00:14:47,560 --> 00:14:49,560 Items for consideration. 251 00:14:49,560 --> 00:14:54,880 First item is consider approval of the May 10th minutes. 252 00:14:54,880 --> 00:14:56,080 And Katherine, I wasn't there. 253 00:14:56,080 --> 00:14:57,480 Do I just vote, or do I -- 254 00:14:57,480 --> 00:14:58,480 >> Abstain. 255 00:14:58,480 --> 00:14:59,480 >> Abstain. 256 00:14:59,480 --> 00:15:00,480 Abstain. 257 00:15:00,480 --> 00:15:01,480 Thank you. 258 00:15:01,480 --> 00:15:02,480 All right. 259 00:15:02,480 --> 00:15:08,000 Do we have a motion to approve the minutes of May 10th? 260 00:15:08,000 --> 00:15:09,520 >> I move. 261 00:15:09,520 --> 00:15:10,520 >> Okay. 262 00:15:10,520 --> 00:15:11,520 Thank you. 263 00:15:11,520 --> 00:15:12,520 Mr. Rybak, second? 264 00:15:12,520 --> 00:15:13,520 Billy's a second. 265 00:15:13,520 --> 00:15:14,520 All in favor, say aye. 266 00:15:14,520 --> 00:15:19,520 >> Aye. 267 00:15:19,520 --> 00:15:24,320 >> Now abstain. 268 00:15:24,320 --> 00:15:25,320 Okay. 269 00:15:25,320 --> 00:15:30,160 Item B. Consider recommending the adoption of an ordinance for the City Council of the 270 00:15:30,160 --> 00:15:37,400 City of Denton, Texas, repealing Ordinance Number 2420, approving and adopting the 2021 271 00:15:37,400 --> 00:15:40,760 Denton Municipal Energy Risk Management Policy. 272 00:15:40,760 --> 00:15:47,080 Confirming authority as approved in the 2021 ERMP, authorizing and approving the subsequent 273 00:15:47,080 --> 00:15:54,000 execution of such ancillary and related documents, including without limitation contracts, nominations, 274 00:15:54,000 --> 00:16:00,600 certificates, assignments, licenses, directions, instruments, confirmations, orders, and statements 275 00:16:00,600 --> 00:16:06,760 as are authorized by the 2021 ERMP, which are incident to or related there to confirming 276 00:16:06,760 --> 00:16:13,200 that the City of Denton, Texas, its Mayor, its City Council members, its City Manager 277 00:16:13,200 --> 00:16:19,360 or designees, its City Attorney or designees, and the City Secretary or designees are authorized 278 00:16:19,360 --> 00:16:23,920 to perform such acts and obligations as are reasonably required to consummate the future 279 00:16:23,920 --> 00:16:29,480 transactions which are provided for and authorized by the 2021 ERMP. 280 00:16:29,480 --> 00:16:33,480 Finding that the purchase of electricity, natural gas, and related commodities and instruments 281 00:16:33,480 --> 00:16:36,880 are exempt from the requirements of competitive bidding. 282 00:16:36,880 --> 00:16:41,160 Finding that the purchase of electric energy, natural gas, and related commodities and instruments 283 00:16:41,160 --> 00:16:47,800 made by the City under the terms of the 2021 ERMP are in the public welfare of the citizens 284 00:16:47,800 --> 00:16:53,080 and electric rate payers of the City, authorizing the expenditure funds, therefore providing 285 00:16:53,080 --> 00:16:56,040 an effective date. 286 00:16:56,040 --> 00:16:57,600 Item B, who's presenting? 287 00:16:57,600 --> 00:17:02,080 We have Smith Day, who's going to go through a very short presentation. 288 00:17:02,080 --> 00:17:05,200 Thank you. 289 00:17:05,200 --> 00:17:08,200 Good morning, TV. 290 00:17:08,200 --> 00:17:17,800 That's quite a handful, but let me let me get to the presentation screen here so I can 291 00:17:17,800 --> 00:17:20,000 share that. 292 00:17:20,000 --> 00:17:33,360 And away we go, hopefully, you can all see that. 293 00:17:33,360 --> 00:17:52,480 Okay, a couple weeks ago, I promised we'd be back for the conclusion of this item. 294 00:17:52,480 --> 00:17:57,960 We introduced it, we had questions and answers, you've had it in your hands. 295 00:17:57,960 --> 00:18:02,240 And just to recap real quick, we didn't want to belabor this too long. 296 00:18:02,240 --> 00:18:06,160 What we're asking today is your recommendation to approve this. 297 00:18:06,160 --> 00:18:13,160 Again, to reiterate, the 2020 version of the risk policy was introduced and explained. 298 00:18:13,160 --> 00:18:14,620 This is an annual thing. 299 00:18:14,620 --> 00:18:17,560 We've had this policy for many years. 300 00:18:17,560 --> 00:18:20,520 We update it every year. 301 00:18:20,520 --> 00:18:23,400 We try to continuously improve it. 302 00:18:23,400 --> 00:18:33,760 The policy is designed to give a governance structure for the operation of the hedging 303 00:18:33,760 --> 00:18:40,920 and financial portfolio for the energy costs of DME. 304 00:18:40,920 --> 00:18:46,040 So it's pretty straightforward. 305 00:18:46,040 --> 00:18:52,280 The plan, again, to recap, the policy changes for 2021 are largely driven by the hedge plan. 306 00:18:52,280 --> 00:18:57,520 So the hedge plan is connected to the policy, the policy is, of course, connected to the 307 00:18:57,520 --> 00:19:02,560 risk committee, the risk committee is connected to the BUB, et cetera, on up to the council. 308 00:19:02,560 --> 00:19:10,920 So what we had to do was make adjustments for accommodate the changes in the hedge plan. 309 00:19:10,920 --> 00:19:13,760 We did that to this risk policy. 310 00:19:13,760 --> 00:19:23,160 The other big change was to remove the outage insurance from EMO authorized products to move 311 00:19:23,160 --> 00:19:25,040 that over to city risk and legal. 312 00:19:25,040 --> 00:19:31,880 And that was done as a decision to keep that area traditional. 313 00:19:31,880 --> 00:19:36,880 And that's really the risk area of whether we have a tornado that blows the building 314 00:19:36,880 --> 00:19:37,880 down. 315 00:19:37,880 --> 00:19:40,760 That's a different policy than the one Terry just explained. 316 00:19:40,760 --> 00:19:46,440 And what we're doing today is just simply asking for you to recommend approval so we 317 00:19:46,440 --> 00:19:53,080 can move forward with our 2021 version of our risk policy. 318 00:19:53,080 --> 00:19:57,560 Lee, you have a question. 319 00:19:57,560 --> 00:19:59,320 Yes, I do. 320 00:19:59,320 --> 00:20:04,320 One of the things I read in this ordinance and the attached materials had to do with 321 00:20:04,320 --> 00:20:07,080 noncompetitive pricing. 322 00:20:07,080 --> 00:20:11,600 Now I'm assuming that's because the utilities you're connected to, you're connected to, 323 00:20:11,600 --> 00:20:12,600 and that's that. 324 00:20:12,600 --> 00:20:16,720 But I would like to at least ask for some clarification. 325 00:20:16,720 --> 00:20:22,640 Is that something that I'm looking at, Catherine, is that something that we can answer? 326 00:20:22,640 --> 00:20:23,640 Okay. 327 00:20:23,640 --> 00:20:24,640 Yes, sorry. 328 00:20:24,640 --> 00:20:25,640 Yep. 329 00:20:25,640 --> 00:20:26,640 Thank you. 330 00:20:26,640 --> 00:20:30,960 Can you direct me to the area specifically? 331 00:20:30,960 --> 00:20:31,960 Was it in the policy? 332 00:20:31,960 --> 00:20:32,960 Do you have that? 333 00:20:32,960 --> 00:20:35,920 Oh, you're going to make me reread this? 334 00:20:35,920 --> 00:20:39,520 No, it's a big policy. 335 00:20:39,520 --> 00:20:40,520 I've got it here though. 336 00:20:40,520 --> 00:20:41,520 It is a big policy. 337 00:20:41,520 --> 00:20:48,240 I think what Lee was asking about, captive shipper is our noncompetitive pricing. 338 00:20:48,240 --> 00:20:51,680 Correct, Smith? 339 00:20:51,680 --> 00:20:52,680 Which one? 340 00:20:52,680 --> 00:20:53,680 I'm sorry? 341 00:20:53,680 --> 00:20:54,680 He was referring to... 342 00:20:54,680 --> 00:20:57,240 Exempt from the requirements of competitive bidding. 343 00:20:57,240 --> 00:20:59,600 That was what I was asking about. 344 00:20:59,600 --> 00:21:00,600 Oh, I'm sorry. 345 00:21:00,600 --> 00:21:03,720 So that's the products that are exempt, right? 346 00:21:03,720 --> 00:21:11,800 So under the statutory framework of Texas, there are certain exemptions to the public 347 00:21:11,800 --> 00:21:13,320 procurement laws. 348 00:21:13,320 --> 00:21:15,200 Energy is one of them. 349 00:21:15,200 --> 00:21:19,760 One of the big reasons that energy is exempted is because it's a real time product. 350 00:21:19,760 --> 00:21:26,920 There's no way you can go through a multi-week procurement process when you need that energy 351 00:21:26,920 --> 00:21:27,920 right this minute. 352 00:21:27,920 --> 00:21:34,480 And that was a great example, was the tropical winter storm, Yuri. 353 00:21:34,480 --> 00:21:39,400 So winter storm, Yuri, we needed tremendous amounts of excess power. 354 00:21:39,400 --> 00:21:40,960 We needed it right then, right there. 355 00:21:40,960 --> 00:21:44,960 So you really have to go procure it on the spot. 356 00:21:44,960 --> 00:21:49,800 And that's why the exception exists in the statute. 357 00:21:49,800 --> 00:21:50,800 Okay. 358 00:21:50,800 --> 00:21:51,960 Well, thank you. 359 00:21:51,960 --> 00:21:52,960 Again, I read it. 360 00:21:52,960 --> 00:21:57,800 I was like, why would it be exempt and that it makes sense for connected utilities? 361 00:21:57,800 --> 00:22:03,880 Power, obviously power and gas and the crisis situation you're procuring in real time. 362 00:22:03,880 --> 00:22:07,640 Again, I just wanted to ask the question for clarification. 363 00:22:07,640 --> 00:22:08,640 Thank you. 364 00:22:08,640 --> 00:22:09,640 Yes, sir. 365 00:22:09,640 --> 00:22:11,680 Thank you. 366 00:22:11,680 --> 00:22:13,240 Any other questions? 367 00:22:13,240 --> 00:22:15,120 All right. 368 00:22:15,120 --> 00:22:18,760 Do we have a motion to approve item B? 369 00:22:18,760 --> 00:22:23,360 Okay, Ben is moving in. 370 00:22:23,360 --> 00:22:24,360 Barbara is seconding. 371 00:22:24,360 --> 00:22:26,360 All in favor say aye. 372 00:22:26,360 --> 00:22:27,360 Aye. 373 00:22:27,360 --> 00:22:28,360 Opposed? 374 00:22:28,360 --> 00:22:30,400 That one carries. 375 00:22:30,400 --> 00:22:36,400 Item C. Thank you. 376 00:22:36,400 --> 00:22:40,320 Consider recommending the adoption of an ordinance for the City of Denton, the Texas Home Rule 377 00:22:40,320 --> 00:22:45,680 Municipal Corporation, authorizing the city manager or their designee to execute a public 378 00:22:45,680 --> 00:22:50,880 works contract with the Mountain Creek of Texas LLC for the construction of the Hickory 379 00:22:50,880 --> 00:22:56,560 Creek Interceptor Phase 1 and 2 project, providing for the expenditure of funds there for and 380 00:22:56,560 --> 00:23:04,960 providing for an effective date ISB 7252 awarded to Mountain Cascade of Texas LLC and the not 381 00:23:04,960 --> 00:23:09,200 to exceed amount of 7,534,784.25. 382 00:23:09,200 --> 00:23:25,800 If you'll give us a second, we have Tracy back with a couple of projects. 383 00:23:25,800 --> 00:23:27,800 If you could unmute Tracy. 384 00:23:27,800 --> 00:23:28,800 Yes. 385 00:23:28,800 --> 00:23:29,800 You're muted. 386 00:23:29,800 --> 00:23:30,800 There we go. 387 00:23:30,800 --> 00:23:31,800 I saw that. 388 00:23:31,800 --> 00:23:32,800 Just couldn't click hard enough. 389 00:23:32,800 --> 00:23:33,800 Thank you. 390 00:23:33,800 --> 00:23:34,800 Good morning, everybody. 391 00:23:34,800 --> 00:23:45,440 Let me share my screen with you and let me know if you can see. 392 00:23:45,440 --> 00:23:56,960 Excellent. 393 00:23:56,960 --> 00:23:57,960 All right. 394 00:23:57,960 --> 00:24:01,760 This morning, I'm going to speak to you about the Hickory Creek Interceptor Phases 1 and 395 00:24:01,760 --> 00:24:02,760 2. 396 00:24:02,760 --> 00:24:08,280 It's a construction award for an interceptor that's got some longevity on it. 397 00:24:08,280 --> 00:24:10,000 So we're excited today to bring this to you. 398 00:24:10,000 --> 00:24:11,000 Excuse me, Tracy? 399 00:24:11,000 --> 00:24:12,000 Yes, sir. 400 00:24:12,000 --> 00:24:13,000 We need that full screen, please. 401 00:24:13,000 --> 00:24:14,000 Oh, let's see. 402 00:24:14,000 --> 00:24:20,440 Oh, goodness, thank you. 403 00:24:20,440 --> 00:24:28,080 It's not working. 404 00:24:28,080 --> 00:24:29,080 One minute, please. 405 00:24:29,080 --> 00:24:32,080 We've got technical. 406 00:24:32,080 --> 00:24:36,000 Fantastic. 407 00:24:36,000 --> 00:24:37,000 Thank you. 408 00:24:37,000 --> 00:24:38,000 Very good. 409 00:24:38,000 --> 00:24:40,360 I apologize for that. 410 00:24:40,360 --> 00:24:41,360 My name is Tracy Beck. 411 00:24:41,360 --> 00:24:45,800 I'm the project manager for this project. 412 00:24:45,800 --> 00:24:49,960 The project scope and purpose, a little bit of background about this project is it's approximately 413 00:24:49,960 --> 00:24:52,640 13,000 linear feet. 414 00:24:52,640 --> 00:24:57,800 It's about two and a half miles ranging from approximately I-35 to the north, south to 415 00:24:57,800 --> 00:24:59,840 US-377. 416 00:24:59,840 --> 00:25:05,800 The purpose is because the project, the existing sewer line is under capacity, and it was built 417 00:25:05,800 --> 00:25:13,120 in the 1980s, and we've got a benefit to adding from a range of 30 to approximately 54 inch 418 00:25:13,120 --> 00:25:19,360 pipes to relieve the capacity needs. 419 00:25:19,360 --> 00:25:24,800 The schedule for this project recently is the advertisement took place in March 14th 420 00:25:24,800 --> 00:25:27,360 of 2021. 421 00:25:27,360 --> 00:25:30,200 We had a design amendment to address some items. 422 00:25:30,200 --> 00:25:36,280 We went through pre-bid, and now we're into the solicitation, passed the solicitation, 423 00:25:36,280 --> 00:25:40,840 and we went into the award and open bid. 424 00:25:40,840 --> 00:25:47,040 The bid response summary includes six applicants. 425 00:25:47,040 --> 00:25:52,680 The lowest bid using the invitation for bid, the IFB, also known as the low bid process, 426 00:25:52,680 --> 00:25:58,280 was granted to the Mountain Cascade of Texas for approximately $7.1 million. 427 00:25:58,280 --> 00:26:07,600 The OPCC, or the engineer's opinion of probable cost, was approximately $9.5 million. 428 00:26:07,600 --> 00:26:12,440 Staff's recommendation for this particular project is to award the project to Mountain 429 00:26:12,440 --> 00:26:15,240 Cascade Construction Company. 430 00:26:15,240 --> 00:26:20,240 In addition to the contract amount, staff has also added a 5% contingency that's outside 431 00:26:20,240 --> 00:26:27,160 of the actual contract that allows staff to work with a change board and other groups 432 00:26:27,160 --> 00:26:33,160 to review the change orders, if any, and approve those in turn. 433 00:26:33,160 --> 00:26:37,200 The project does have funding, and the project funding sources are from the Wastewater Project 434 00:26:37,200 --> 00:26:39,840 Funds. 435 00:26:39,840 --> 00:26:42,840 With that, I'd be glad to answer any questions you may have. 436 00:26:42,840 --> 00:26:46,440 Can you take the presentation down, please? 437 00:26:46,440 --> 00:26:47,440 Thank you. 438 00:26:47,440 --> 00:26:48,440 You sure can. 439 00:26:48,440 --> 00:26:49,440 Thank you. 440 00:26:49,440 --> 00:26:50,440 Go ahead, Barbara. 441 00:26:50,440 --> 00:26:58,920 Is there any penalty for not finishing on time, if it has to be extended? 442 00:26:58,920 --> 00:27:01,160 No, ma'am. 443 00:27:01,160 --> 00:27:04,840 Lee, go ahead. 444 00:27:04,840 --> 00:27:08,560 I have a question about the contingency. 445 00:27:08,560 --> 00:27:10,400 I noted it's 5%. 446 00:27:10,400 --> 00:27:12,760 Is that typical for projects? 447 00:27:12,760 --> 00:27:14,920 Yes, sir. 448 00:27:14,920 --> 00:27:20,920 Staff has worked through legal to make sure that we have an opportunity to use a changeboard 449 00:27:20,920 --> 00:27:23,280 program, which we didn't have about a year ago. 450 00:27:23,280 --> 00:27:28,240 So we will review those with finance and other departments to make sure that what we're approving 451 00:27:28,240 --> 00:27:35,840 has passed through the review of all the departments, and it's standard on all CIP projects going 452 00:27:35,840 --> 00:27:36,840 forward. 453 00:27:36,840 --> 00:27:37,840 Okay. 454 00:27:37,840 --> 00:27:38,840 Thank you. 455 00:27:38,840 --> 00:27:39,840 And I have a question. 456 00:27:39,840 --> 00:27:47,360 I know this has been in the works for a very long time. 457 00:27:47,360 --> 00:27:54,840 What's the difference between what the engineering estimate was versus how it came in? 458 00:27:54,840 --> 00:27:56,360 I mean, that's almost $2 million. 459 00:27:56,360 --> 00:28:00,680 Are we confident something wasn't missed in the bidding process? 460 00:28:00,680 --> 00:28:03,040 We've reviewed it, and we didn't see anything that was missed. 461 00:28:03,040 --> 00:28:07,960 There's a change in the time of when the bids were estimated, as well as the companies are 462 00:28:07,960 --> 00:28:10,280 also doing business in the local city. 463 00:28:10,280 --> 00:28:11,520 They've been on other projects. 464 00:28:11,520 --> 00:28:14,680 So they're a little bit closer to town. 465 00:28:14,680 --> 00:28:17,440 So it's going to be more advanced. 466 00:28:17,440 --> 00:28:19,320 Okay. 467 00:28:19,320 --> 00:28:22,920 Any other questions? 468 00:28:22,920 --> 00:28:26,880 Do we have a motion to approve this item? 469 00:28:26,880 --> 00:28:29,200 Barbara moved. 470 00:28:29,200 --> 00:28:30,200 And Lee seconded. 471 00:28:30,200 --> 00:28:32,000 All in favor say aye. 472 00:28:32,000 --> 00:28:33,000 Aye. 473 00:28:33,000 --> 00:28:34,000 Aye. 474 00:28:34,000 --> 00:28:35,000 Aye. 475 00:28:35,000 --> 00:28:37,840 We're going to move item E ahead of item D. 476 00:28:37,840 --> 00:28:45,440 Mr. Cheek is going to have to recuse himself on item E, so we'll have him do that and come 477 00:28:45,440 --> 00:28:46,920 back in for concluding items. 478 00:28:46,920 --> 00:28:49,840 So go ahead with management reports, Tony. 479 00:28:49,840 --> 00:28:50,840 Okay. 480 00:28:50,840 --> 00:28:55,640 So Madam Chair and members of the board, we have on here, the first item we have is a 481 00:28:55,640 --> 00:29:00,920 memo from finance regarding the upcoming CO bond sale. 482 00:29:00,920 --> 00:29:06,700 If there's any questions that you have regarding that memo, they'll be happy to walk you through 483 00:29:06,700 --> 00:29:11,160 any question and certainly we have staff from the utilities available as well. 484 00:29:11,160 --> 00:29:15,640 Are there any questions on the go ahead. 485 00:29:15,640 --> 00:29:17,720 I have a quick question. 486 00:29:17,720 --> 00:29:21,640 In looking through the list, there were some items in the bond and some items not in the 487 00:29:21,640 --> 00:29:22,640 bond. 488 00:29:22,640 --> 00:29:26,400 And I was curious what drives that having never seen one of these before. 489 00:29:26,400 --> 00:29:27,400 So you wouldn't mind. 490 00:29:27,400 --> 00:29:28,400 Yeah. 491 00:29:28,400 --> 00:29:32,800 Well, what I could tell you specific to DME, obviously, and we had originally planned to 492 00:29:32,800 --> 00:29:40,960 issue about 61 and a half million dollars worth of CEOs to fund projects as we started 493 00:29:40,960 --> 00:29:47,080 to go through that list again, some projects are delayed or we've kind of rethought the 494 00:29:47,080 --> 00:29:48,080 amount that we needed. 495 00:29:48,080 --> 00:29:52,080 And so there's just a reprioritization that happens every year. 496 00:29:52,080 --> 00:29:53,240 And so that's what's happened here. 497 00:29:53,240 --> 00:30:00,080 I'll be honest with you regarding DME specifically, we were very, very cognizant of the upcoming 498 00:30:00,080 --> 00:30:05,080 debt burden that our repairs are going to have and so we made a conscious effort to 499 00:30:05,080 --> 00:30:08,080 reduce and delay some of these projects. 500 00:30:08,080 --> 00:30:13,080 And so that's the difference and I'm sure that on the water and wastewater side, it 501 00:30:13,080 --> 00:30:16,040 was the same type of process that they went through as well. 502 00:30:16,040 --> 00:30:22,620 So it's not uncustomary that there's a divergence from what we originally had in the CIP adopted 503 00:30:22,620 --> 00:30:28,360 budget to what we ultimately end up going to sell primarily because of delays in some 504 00:30:28,360 --> 00:30:29,360 of these projects. 505 00:30:29,360 --> 00:30:30,360 Very good. 506 00:30:30,360 --> 00:30:31,360 Thank you. 507 00:30:31,360 --> 00:30:34,360 I was curious and I appreciate your explanation. 508 00:30:34,360 --> 00:30:35,360 Yes, sir. 509 00:30:35,360 --> 00:30:39,640 Okay, if there's no other questions on that, the next item that we have for you is just 510 00:30:39,640 --> 00:30:41,720 the future agenda items. 511 00:30:41,720 --> 00:30:45,400 Obviously, the name of the game here is budget, budget, budget, right? 512 00:30:45,400 --> 00:30:53,040 And so we will be coming to you starting on June 14th, I believe, and the finance group 513 00:30:53,040 --> 00:30:56,040 has already been working with the utilities on putting budget presentations together and 514 00:30:56,040 --> 00:31:03,400 budgets together and you'll be seeing those over the course of the next couple of months. 515 00:31:03,400 --> 00:31:09,920 And then finally, the last item that we have for you is just a recap of new business action 516 00:31:09,920 --> 00:31:10,920 items. 517 00:31:10,920 --> 00:31:12,400 These are the same two items that are on there. 518 00:31:12,400 --> 00:31:18,080 I did want to just simply inform you of two other items that aren't on here. 519 00:31:18,080 --> 00:31:26,020 The first one had met with the chair and she's requested a legislative wrap up on all these 520 00:31:26,020 --> 00:31:31,300 bills that may be going into effect, that may be impacting our utilities. 521 00:31:31,300 --> 00:31:35,560 We're going to plan to do that probably sometime in July. 522 00:31:35,560 --> 00:31:40,760 And then obviously the legislature is still meeting, this is the last week that bills 523 00:31:40,760 --> 00:31:45,440 can come out of committee to the full legislative body. 524 00:31:45,440 --> 00:31:51,440 So it's near the end and so hopefully we'll have resolution on many of those items. 525 00:31:51,440 --> 00:31:55,400 And then the only other item that I'll mention to you is I believe June 14th, and again, 526 00:31:55,400 --> 00:32:01,160 this is pending council direction tomorrow, but I believe June 14th will be our first 527 00:32:01,160 --> 00:32:07,260 basically hybrid meeting where we're going to have some of you here in the work session 528 00:32:07,260 --> 00:32:08,260 room. 529 00:32:08,260 --> 00:32:12,960 And I think a couple of you have asked that you continue to work virtually, and so there'll 530 00:32:12,960 --> 00:32:14,800 be a little bit of a hybrid approach to that. 531 00:32:14,800 --> 00:32:17,840 But again, that's pending council direction tomorrow. 532 00:32:17,840 --> 00:32:22,360 Once we have that, we'll certainly get that out to the board and all our other committees 533 00:32:22,360 --> 00:32:23,560 as well. 534 00:32:23,560 --> 00:32:27,160 So with that, I'll be happy to answer any questions that you may have on any of those 535 00:32:27,160 --> 00:32:28,160 items. 536 00:32:28,160 --> 00:32:29,160 Go ahead, Lee. 537 00:32:29,160 --> 00:32:35,040 Tony, just a quick comment since I'm new to the board and the process. 538 00:32:35,040 --> 00:32:41,600 I was wondering if during that first meeting we could get, if you will, a high level, sketchy 539 00:32:41,600 --> 00:32:47,160 overview of the budget process, how it works before we dive into all the details. 540 00:32:47,160 --> 00:32:49,040 Yes, sir, we could do that. 541 00:32:49,040 --> 00:32:52,280 I'm looking at Cassie Ogden, our director of finance, she says she'll be happy to get 542 00:32:52,280 --> 00:32:54,400 that to you. 543 00:32:54,400 --> 00:32:55,680 Okay. 544 00:32:55,680 --> 00:32:56,680 Thank you. 545 00:32:56,680 --> 00:32:58,320 Yes, sir. 546 00:32:58,320 --> 00:33:00,360 All right. 547 00:33:00,360 --> 00:33:06,160 Then we'll go into item D. Billy, you want to recuse yourself from this one? 548 00:33:06,160 --> 00:33:11,800 Consider recommending the adoption of an ordinance of the city of Denton, a Texas home roll municipal 549 00:33:11,800 --> 00:33:16,880 corporation authorizing the city manager or their designee to execute a contract with 550 00:33:16,880 --> 00:33:23,120 Jago Public Company for the construction of the 2020 Street Bundle Sector 2 project with 551 00:33:23,120 --> 00:33:25,600 geographical limits as follows. 552 00:33:25,600 --> 00:33:30,840 North Texas Boulevard from West Oak Street to Eagle Drive, Stella Street from South Bonnie 553 00:33:30,840 --> 00:33:36,400 Bray Street to North Texas Boulevard, Chestnut Street from the Welsh Street to Bernard Street, 554 00:33:36,400 --> 00:33:40,640 and Welsh Street from Fannin Street to Collins Street providing for the expenditure of funds 555 00:33:40,640 --> 00:33:48,160 therefore in providing for an effective date CSP 7582 awarded to Jago Public Company in 556 00:33:48,160 --> 00:33:57,960 the not to exceed amount of $5,044,681. 557 00:33:57,960 --> 00:33:58,960 You're muted. 558 00:33:58,960 --> 00:34:06,480 Dusty, maybe if you put your mic down a little bit, maybe. 559 00:34:06,480 --> 00:34:09,400 How about now? 560 00:34:09,400 --> 00:34:10,400 Can you hear me now? 561 00:34:10,400 --> 00:34:11,400 All right. 562 00:34:11,400 --> 00:34:12,400 There we go. 563 00:34:12,400 --> 00:34:13,400 Hold on. 564 00:34:13,400 --> 00:34:14,400 My name is Dustin Draper. 565 00:34:14,400 --> 00:34:15,400 Good morning. 566 00:34:15,400 --> 00:34:17,400 As I said, I will be bringing you the 2020 Bundle Sector 2. 567 00:34:17,400 --> 00:34:28,920 Let me bring in my presentation real quick. 568 00:34:28,920 --> 00:34:48,040 Again, good morning, this is the 2020 Street Bundle Sector 2 award for construction contract. 569 00:34:48,040 --> 00:34:53,920 My project overview is it's basically a roadway project with water and wastewater upgrades. 570 00:34:53,920 --> 00:34:59,280 My extents, as you can see on the map, are Stella Street from Bonnie Bray to North Texas, 571 00:34:59,280 --> 00:35:09,400 North Texas Boulevard from Oak all the way to Eagle, Chestnut Street, and Welsh. 572 00:35:09,400 --> 00:35:15,960 The method used in the proposal for this bid was a competitive sealed proposal, CSP. 573 00:35:15,960 --> 00:35:17,280 This bid is a little different than most. 574 00:35:17,280 --> 00:35:18,720 What you see is a low bid. 575 00:35:18,720 --> 00:35:25,160 The proposal is sent out to projective bidders, they place a proposal back and then they are 576 00:35:25,160 --> 00:35:30,440 scored in according order to make sure that we're not only getting the lowest bid, but 577 00:35:30,440 --> 00:35:34,400 we're also getting the best quality of construction out of our contractors. 578 00:35:34,400 --> 00:35:37,280 As you can see from my chart, there was four sent out. 579 00:35:37,280 --> 00:35:44,200 Those companies were Jago Public, Texas Bid, Seamen Construction, and Reliable Paving. 580 00:35:44,200 --> 00:35:48,760 As you can see, the categories are ranked in total score of 100 from everything from 581 00:35:48,760 --> 00:35:55,220 the price to safety record, schedule and written plan, quality and reputation, and key personnel. 582 00:35:55,220 --> 00:36:02,800 As you see in these categories right here, Jago Public does win a bid at a 76.05 as the 583 00:36:02,800 --> 00:36:05,320 most responsible and lowest bid. 584 00:36:05,320 --> 00:36:09,720 It's one of the things where, so to speak, the traditional low bid, you always get a 585 00:36:09,720 --> 00:36:15,800 low price, but you don't necessarily get the quality of contractor or work that you want 586 00:36:15,800 --> 00:36:17,840 to get. 587 00:36:17,840 --> 00:36:22,600 My project schedule is, this was prepared at the time this was, job was decided to be 588 00:36:22,600 --> 00:36:23,600 designed. 589 00:36:23,600 --> 00:36:28,280 It was current staffs that time, at IDEO at that time, to design it in-house. 590 00:36:28,280 --> 00:36:30,620 The in-house design was completed in February 2021. 591 00:36:30,620 --> 00:36:35,280 Of course, I'm taking it for y'all's approval today on May 24th. 592 00:36:35,280 --> 00:36:39,480 Council award hopefully on June 8th, pending y'all's decision today. 593 00:36:39,480 --> 00:36:47,440 Staffs proceed on June 21st and my construction complete in June of 2021, or sorry, June 21 594 00:36:47,440 --> 00:36:48,760 of 2022. 595 00:36:48,760 --> 00:36:53,800 The staff's recommendation is to authorize the approval of the contract with Jago Public 596 00:36:53,800 --> 00:37:03,960 and to not to exceed the amount of $5,044,681 with the 5% TGS traits explained in the earlier 597 00:37:03,960 --> 00:37:04,960 slide. 598 00:37:04,960 --> 00:37:05,960 Any questions? 599 00:37:05,960 --> 00:37:11,320 Well, I just want to say for clarification, the reason why this is coming for us is because 600 00:37:11,320 --> 00:37:12,320 of the water. 601 00:37:12,320 --> 00:37:13,320 Yes, ma'am. 602 00:37:13,320 --> 00:37:18,840 The reason why it's on there, it's a roadway project and there are, due to, yeah, due to 603 00:37:18,840 --> 00:37:21,840 aging infrastructure, there are water and wastewater needs that need to be replaced 604 00:37:21,840 --> 00:37:22,840 on these roads. 605 00:37:22,840 --> 00:37:23,840 Yeah. 606 00:37:23,840 --> 00:37:24,840 And that's why it's before us. 607 00:37:24,840 --> 00:37:25,840 Yes, ma'am. 608 00:37:25,840 --> 00:37:27,160 Normally, a road project would not come here. 609 00:37:27,160 --> 00:37:30,640 It just, we have some new members and just want to clarify. 610 00:37:30,640 --> 00:37:31,640 All right. 611 00:37:31,640 --> 00:37:34,480 Do I, do we have any questions on the project? 612 00:37:34,480 --> 00:37:37,840 Yes, Barbara, first. 613 00:37:37,840 --> 00:37:41,420 Go ahead, Barbara, I'm sorry. 614 00:37:41,420 --> 00:37:48,640 I just wanted to ask, I noticed that the design work was done in-house and I'm sure that 615 00:37:48,640 --> 00:37:51,600 is more cost-effective for the city. 616 00:37:51,600 --> 00:37:59,680 Is the reason more isn't done in-house because they're that busy or what's your criteria 617 00:37:59,680 --> 00:38:01,640 for going outside? 618 00:38:01,640 --> 00:38:07,280 Primarily, everybody likes to go outside because of the availability of the deal. 619 00:38:07,280 --> 00:38:11,400 We have a limited number of engineers here with inside the city that can draw on design 620 00:38:11,400 --> 00:38:12,400 prints. 621 00:38:12,400 --> 00:38:16,080 It is, even though you are correct, it is more cost-effective design. 622 00:38:16,080 --> 00:38:18,520 There is no way that we could design every project in-house. 623 00:38:18,520 --> 00:38:20,520 We just don't have enough staff. 624 00:38:20,520 --> 00:38:24,760 It also can be done a lot quicker by outside entities because they have the ability to 625 00:38:24,760 --> 00:38:29,120 have 10 or 12 engineers working on it as opposed to just one. 626 00:38:29,120 --> 00:38:30,120 Sure. 627 00:38:30,120 --> 00:38:31,120 Okay. 628 00:38:31,120 --> 00:38:32,120 Thank you. 629 00:38:32,120 --> 00:38:33,120 We appreciate it as much. 630 00:38:33,120 --> 00:38:34,120 Thank you. 631 00:38:34,120 --> 00:38:35,120 No problem. 632 00:38:35,120 --> 00:38:37,920 Lee, I think you had a question. 633 00:38:37,920 --> 00:38:41,160 Yes, I have a curiosity question. 634 00:38:41,160 --> 00:38:52,480 The company that selected J-Go public, their safety record score was reasonably low. 635 00:38:52,480 --> 00:38:59,200 And then, of course, the reliable commercial safety record was zero, which I was a little 636 00:38:59,200 --> 00:39:00,200 surprised at. 637 00:39:00,200 --> 00:39:05,320 Is there any particular reason that the selected company's safety record is a little bit lower 638 00:39:05,320 --> 00:39:06,560 than one might hope? 639 00:39:06,560 --> 00:39:07,560 Yes, sir. 640 00:39:07,560 --> 00:39:08,560 There is. 641 00:39:08,560 --> 00:39:09,560 Okay. 642 00:39:09,560 --> 00:39:12,520 As these criteria are graded, they are also graded by the information and the proposal 643 00:39:12,520 --> 00:39:14,180 that you supply. 644 00:39:14,180 --> 00:39:19,480 If you leave a portion out or you don't give all the information that was asked, you have 645 00:39:19,480 --> 00:39:20,600 to be scored accordingly. 646 00:39:20,600 --> 00:39:24,320 That's why some will get a zero because they didn't submit as much information or all the 647 00:39:24,320 --> 00:39:30,460 necessary information as the lower ones, some of them rank, some of them don't. 648 00:39:30,460 --> 00:39:33,520 It depends on how well you answer in the proposal. 649 00:39:33,520 --> 00:39:34,520 Okay. 650 00:39:34,520 --> 00:39:39,480 So it wasn't something related to like some kind of safety record report from the insurance 651 00:39:39,480 --> 00:39:40,480 industry or something. 652 00:39:40,480 --> 00:39:42,920 It's just on the documentation they provide. 653 00:39:42,920 --> 00:39:43,920 Yes, sir. 654 00:39:43,920 --> 00:39:45,280 Oh, very good. 655 00:39:45,280 --> 00:39:46,520 And just wanted to comment. 656 00:39:46,520 --> 00:39:54,560 I think this CSP process does beat the pants off a little bit only, so good on you guys. 657 00:39:54,560 --> 00:39:56,040 Yes. 658 00:39:56,040 --> 00:39:57,040 Thank you. 659 00:39:57,040 --> 00:39:58,040 All right. 660 00:39:58,040 --> 00:39:59,040 Any other questions? 661 00:39:59,040 --> 00:40:02,720 Do we have a motion to approve item D? 662 00:40:02,720 --> 00:40:03,720 Okay. 663 00:40:03,720 --> 00:40:05,760 I'll leave right back. 664 00:40:05,760 --> 00:40:06,760 Seconded by Barbara Russell. 665 00:40:06,760 --> 00:40:08,760 All in favor say aye. 666 00:40:08,760 --> 00:40:09,760 Aye. 667 00:40:09,760 --> 00:40:10,760 Aye. 668 00:40:10,760 --> 00:40:11,760 Aye. 669 00:40:11,760 --> 00:40:12,760 Okay. 670 00:40:12,760 --> 00:40:13,760 Motion carries. 671 00:40:13,760 --> 00:40:22,240 Let me, let Billy know that we're done. 672 00:40:22,240 --> 00:40:23,240 Okay. 673 00:40:23,240 --> 00:40:28,160 Then the final item is concluding items. 674 00:40:28,160 --> 00:40:37,800 Does any board member wish to have something added to the agenda or make any comments? 675 00:40:37,800 --> 00:40:41,160 Let's wait just for a second for Billy to come back in case he has something. 676 00:40:41,160 --> 00:40:42,160 Yes, Lee. 677 00:40:42,160 --> 00:40:43,160 Go ahead. 678 00:40:43,160 --> 00:40:44,160 Just a comment. 679 00:40:44,160 --> 00:40:50,720 I know Tony and Terry have talked a little bit about adding some meteorological muscle 680 00:40:50,720 --> 00:40:57,880 to the team at the DME, and I understand the benefits thereof, and I think Tony appropriately 681 00:40:57,880 --> 00:41:02,200 points out that there is a cost impact there for the long term. 682 00:41:02,200 --> 00:41:09,160 One thing I would like to ask is if there's some consideration of hiring a meteorological 683 00:41:09,160 --> 00:41:16,520 service that could provide alerts, updates, forward forecasting information. 684 00:41:16,520 --> 00:41:18,960 Is that something that's being looked at as well? 685 00:41:18,960 --> 00:41:19,960 Absolutely. 686 00:41:19,960 --> 00:41:26,560 100%, Mr. Rybak, we're actually having those conversations currently, and we'll be happy 687 00:41:26,560 --> 00:41:29,440 to speak with you a little more when we bring the budget to you. 688 00:41:29,440 --> 00:41:30,920 Oh, very good. 689 00:41:30,920 --> 00:41:34,660 I was just curious about it because it's come up at a couple of our sessions, and the thought 690 00:41:34,660 --> 00:41:39,280 had occurred to me in the meantime that maybe a service would be having nothing or having 691 00:41:39,280 --> 00:41:41,460 a person on staff. 692 00:41:41,460 --> 00:41:43,720 That's exactly the conversation we're having, sir. 693 00:41:43,720 --> 00:41:44,720 Okay. 694 00:41:44,720 --> 00:41:47,720 Thank you. 695 00:41:47,720 --> 00:41:52,360 Well, any other questions? 696 00:41:52,360 --> 00:41:57,200 I was waiting for Billy to hop back on, but maybe he's not going to. 697 00:41:57,200 --> 00:41:58,840 Okay. 698 00:41:58,840 --> 00:42:02,840 He just texted me that he has no concluding items, so there we go, but we have a motion 699 00:42:02,840 --> 00:42:03,840 to adjourn. 700 00:42:03,840 --> 00:42:06,680 Oh, there he is. 701 00:42:06,680 --> 00:42:12,440 He came back to adjourn, okay? 702 00:42:12,440 --> 00:42:13,640 Okay. 703 00:42:13,640 --> 00:42:14,640 Motion to adjourn. 704 00:42:14,640 --> 00:42:15,640 So moved. 705 00:42:15,640 --> 00:42:16,640 Okay. 706 00:42:16,640 --> 00:42:17,640 I second it. 707 00:42:17,640 --> 00:42:18,640 All right. 708 00:42:18,640 --> 00:42:19,640 We're concluded at 944. 709 00:42:19,640 --> 00:42:20,640 Thank you, everybody. 710 00:42:20,640 --> 00:42:21,640 Thank you. 711 00:42:21,640 --> 00:42:22,640 Thank you. 712 00:42:22,640 --> 00:42:22,640 Bye.