1 00:00:00,000 --> 00:00:07,000 good morning it's nine o'clock on June 14th so we'll call to order the city of 2 00:00:07,000 --> 00:00:12,560 Denton public utilities board meeting the first item is public comments at 3 00:00:12,560 --> 00:00:22,640 this point are there anybody on the line or here that wishes to speak okay all 4 00:00:22,640 --> 00:00:28,780 right then we'll move into the regular meeting first item is agenda oh I'm 5 00:00:28,780 --> 00:00:35,040 sorry I can't hear you can't hear me Lee can you hear well enough to 6 00:00:35,040 --> 00:00:45,520 understand what you're saying can you hear me now no no really can you hear me 7 00:00:45,520 --> 00:01:04,080 you guys yeah okay Lee can you hear me obviously not okay what do we do okay 8 00:01:15,520 --> 00:01:25,760 Rachel this is Tony can you hear me I can hear you very well Tony but we had a 9 00:01:25,760 --> 00:01:34,880 lot of trouble hearing the people in chambers so maybe now can you hear can 10 00:01:34,880 --> 00:01:39,920 you hear Susan Barbara no it's it just sounds like she's very far away Tony 11 00:01:39,920 --> 00:01:46,160 you're very close but it sounds like she's very far away okay let's give us a 12 00:01:46,160 --> 00:01:48,560 second we're gonna see there might be some technique can you hear me this has 13 00:01:48,560 --> 00:01:54,880 been jumper we are standing by for technical difficulties 14 00:02:07,200 --> 00:02:17,080 okay can you hear me now no ma'am it's not any better yet can you hear me am I 15 00:02:17,080 --> 00:02:26,400 we could switch mics yes yes okay maybe it's this mic you sound far away but it 16 00:02:26,400 --> 00:02:49,120 is legible or audible Tony that was clear as a bell just fine that one must 17 00:02:49,120 --> 00:02:57,520 have been worn out it's perfect much better thank you 18 00:02:57,520 --> 00:03:17,040 I yes Lee ma'am I wish to pull agenda item G from the consent agenda okay any 19 00:03:17,040 --> 00:03:28,000 other items I had a quick question on a okay pull a any others all right do we 20 00:03:28,000 --> 00:03:40,560 have a motion to approve items B C D E F H and I so moved Karen moves I second 21 00:03:40,560 --> 00:03:47,960 and seconds I'll become very faint again I'm sorry to report oh same I'm sorry 22 00:03:47,960 --> 00:03:56,960 Lee he says you're very soft again very vague okay so we have a motion and a 23 00:03:56,960 --> 00:04:06,800 second on approving the items all in favor say aye aye opposed okay Liam 24 00:04:06,800 --> 00:04:14,320 Barbara can you hear me no I'm almost on top of the microphone I don't know what 25 00:04:14,320 --> 00:04:28,760 to do you can't hear me it's got to be audio zoom related issue right Rachel can 26 00:04:28,760 --> 00:04:45,880 you hear me it's very faint again ma'am okay can you hear me now no and we got a 27 00:04:45,880 --> 00:04:57,720 very a very intense feedback from virtual host when that happened okay can 28 00:04:57,720 --> 00:05:00,240 you hear me now 29 00:05:00,240 --> 00:05:08,120 Rachel can you hear me no still very faint 30 00:05:26,800 --> 00:05:31,360 they're saying that you're not going to be able to hear me very loudly we're the 31 00:05:31,360 --> 00:05:39,040 first ones doing this so we're going to have to just bear with it so Barbara and 32 00:05:39,040 --> 00:05:43,160 Lee do you vote yes or no on the proving those other items just raise your hand if 33 00:05:43,160 --> 00:05:54,800 you can you hear me at all okay so can you hear do you want to prove those 34 00:05:54,800 --> 00:05:57,800 items or not 35 00:05:57,800 --> 00:06:08,720 sorry ma'am could not hear you Lee can you hear me once again I can hear you 36 00:06:08,720 --> 00:06:14,880 okay so we don't we don't know what's going on so so so the chairs asked if if 37 00:06:14,880 --> 00:06:21,840 you are approving the consent agenda items except for a and was it G a and G 38 00:06:21,840 --> 00:06:32,880 a and G are you in favor yes Barbara yes okay okay thank you all right 39 00:06:32,880 --> 00:06:40,280 item a I just had a quick question I have a vague memory of this happening 40 00:06:40,280 --> 00:06:49,360 before of a vendor bidding and then changing their their bid can somebody 41 00:06:49,360 --> 00:06:57,400 remind me if this is a recurring problem with wind energy or am I just imagining 42 00:06:57,400 --> 00:07:05,240 things can you hear me yes okay Terry Nolte assistant general manager DME so 43 00:07:05,240 --> 00:07:17,880 this was a an RFP that was issued in actually late 2019 and so due to COVID 44 00:07:17,880 --> 00:07:25,480 in early 2020 bids were delayed and our decisions were delayed by the time we 45 00:07:25,480 --> 00:07:33,120 got to negotiations with this particular contractor or this supplier he decided 46 00:07:33,120 --> 00:07:37,760 so much time had expired that he was going to change his price and when he 47 00:07:37,760 --> 00:07:43,360 changed the price the contract no longer became cost-effective relative to other 48 00:07:43,360 --> 00:07:48,160 bids we received and we'd already moved moved away from those other bids so 49 00:07:48,160 --> 00:07:51,360 that's why we're asking you reject this yeah thanks that that makes sense I just 50 00:07:51,360 --> 00:07:53,600 wanted to make sure this wasn't something we were gonna have to go 51 00:07:53,600 --> 00:08:01,680 through repeatedly thank you okay do we have a motion to approve item a so 52 00:08:01,680 --> 00:08:11,720 moved in a second second okay we have a motion in a second all in favor say aye 53 00:08:11,720 --> 00:08:25,000 aye aye okay motion carries item G is there someone here to speak to item G 54 00:08:25,000 --> 00:08:35,720 so we should have either pre-tem or Steven on the phone yes go ahead Lee 55 00:08:35,720 --> 00:08:40,760 madam chairman my reason for requesting pulling this item was so we could get a 56 00:08:40,760 --> 00:08:46,600 little better explanation of it and the impact it might hold for the future 57 00:08:46,600 --> 00:08:50,720 since it appears to be a long-term consulting contract for wastewater 58 00:08:50,720 --> 00:08:53,000 management 59 00:08:53,000 --> 00:09:07,200 can you hear me Lee someone should be on the line to answer your question this is 60 00:09:07,200 --> 00:09:11,160 a this is Chris Campbell water and wastewater capital project superintendent 61 00:09:11,160 --> 00:09:15,120 I can answer any questions on this item hey Chris this is Tony if you could 62 00:09:15,120 --> 00:09:19,800 speak up a little louder please so we can all hear you thank you is that is 63 00:09:19,800 --> 00:09:25,400 that better Tony yes did you hear the question for mr. Ryback if I do 64 00:09:25,400 --> 00:09:28,320 understand correctly he was just wanting some more detail because this is going 65 00:09:28,320 --> 00:09:32,040 to be an extensive contract is that correct yes sir that is correct it 66 00:09:32,040 --> 00:09:36,320 appears to be a long-term consulting contract and I thought it might be good 67 00:09:36,320 --> 00:09:40,160 for us to get a little further explanation exposition of it thank you 68 00:09:40,160 --> 00:09:47,920 yes sir mr. Ryback no problem so this this is a the the utilities group did an 69 00:09:47,920 --> 00:09:52,800 RFP here recently and scored multiple criteria for the water and wastewater 70 00:09:52,800 --> 00:09:58,120 group one of the criteria was was for planning and permitting right now the 71 00:09:58,120 --> 00:10:02,240 current or currently the the water and wastewater group we do have a water 72 00:10:02,240 --> 00:10:07,560 master plan however we do not have a wastewater master plan so this was this 73 00:10:07,560 --> 00:10:12,960 was top of our priority list to get this consultant on board to to evaluate 74 00:10:12,960 --> 00:10:17,360 currently what we're doing within our model and within our basins and then 75 00:10:17,360 --> 00:10:22,640 also look at what do we need to do for the next 25 to 50 years with water and 76 00:10:22,640 --> 00:10:27,760 weight or with wastewater infrastructure so yes this will there is an extensive 77 00:10:27,760 --> 00:10:32,560 amount of effort that's going to be put forth for surveying and looking at our 78 00:10:32,560 --> 00:10:38,400 existing system and as well as our basins and then and then they will break 79 00:10:38,400 --> 00:10:43,480 down each basin and then come together with a holistic plan of how we should 80 00:10:43,480 --> 00:10:50,240 proceed forward with our wastewater infrastructure alrighty then so this is 81 00:10:50,240 --> 00:10:55,320 the result of a screening process that has already occurred that is correct yes 82 00:10:55,320 --> 00:11:01,760 sir okay have we done business with this firm in the past yes sir Kim Lee Hornan 83 00:11:01,760 --> 00:11:05,600 Associates have done quite a bit of business with the with the city of 84 00:11:05,600 --> 00:11:10,160 Denton they've actually just recently helped write our standard standard 85 00:11:10,160 --> 00:11:14,880 specs for the for the city of Denton as well very well thank you I appreciate 86 00:11:14,880 --> 00:11:19,360 that I just want to get a better flavor for this particular contract because of 87 00:11:19,360 --> 00:11:26,880 the time frame and money thank you absolutely anytime okay do we have a 88 00:11:26,880 --> 00:11:35,960 motion to approve item G okay Lee's motioning second do we have a second 89 00:11:35,960 --> 00:11:44,320 I'll second thank you Karen all in favor say aye aye aye can you hear me better 90 00:11:44,320 --> 00:11:52,040 now yes a little bit a little bit okay because the alternative is to move into 91 00:11:52,040 --> 00:12:04,160 the work session and I'll be via zoom can you hear me yes yes you can hear me 92 00:12:04,160 --> 00:12:11,120 okay so we can hear you okay so the next item is items for individual 93 00:12:11,120 --> 00:12:18,080 consideration item consider the approval of the May 24th 2021 minutes 94 00:12:18,080 --> 00:12:25,400 were there any changes or corrections okay do we have a motion to approve the 95 00:12:25,400 --> 00:12:31,760 minutes so moved okay been moved do we have a second Lee's seconds all in 96 00:12:31,760 --> 00:12:39,000 favor say aye aye I'm abstaining I was absent okay thank you Karen I did that 97 00:12:39,000 --> 00:12:41,480 last time 98 00:12:41,480 --> 00:12:53,320 me too everybody okay so leaving leaving green 99 00:13:05,080 --> 00:13:12,960 okay okay the next item is item B consider recommending adoption of an 100 00:13:12,960 --> 00:13:17,080 ordinance for the city of Denton a Texas Home Rule municipal corporation 101 00:13:17,080 --> 00:13:21,320 authorizing the city manager or their designee to execute a contract with 102 00:13:21,320 --> 00:13:28,080 Hammett extra excavation incorporated for the construction of the perimeter 103 00:13:28,080 --> 00:13:32,240 landfill gas header perimeter road and waterline extension for the solid waste 104 00:13:32,240 --> 00:13:36,080 and recycling department providing for the expenditure funds therefore and 105 00:13:36,080 --> 00:13:41,000 providing an effective date awarded to hammock excavation Inc and the not to 106 00:13:41,000 --> 00:13:44,400 exceed amount of three million six forty one nine hundred and forty dollars and 107 00:13:44,400 --> 00:13:51,840 six cents six cents six cents good morning members of the board my name is 108 00:13:51,840 --> 00:13:54,920 Brian burner I am the solid waste director for the city of Denton it's 109 00:13:54,920 --> 00:13:59,920 nice to see everybody in three dimensions for a change so I am here 110 00:13:59,920 --> 00:14:06,960 today to talk about the project with Hammett to award a contract to extend 111 00:14:06,960 --> 00:14:14,120 our landfill road perimeter road gas well header and waterline what I do want 112 00:14:14,120 --> 00:14:24,040 to talk about today is why we need that this work done talk a little bit about 113 00:14:24,040 --> 00:14:27,560 the process to identify the contractors and the cost to provide our 114 00:14:27,560 --> 00:14:31,960 recommendations and then answer any questions that you might have a city of 115 00:14:31,960 --> 00:14:36,800 Denton landfill in the exist under our existing permit we actually started our 116 00:14:36,800 --> 00:14:41,640 fill pattern on the south and the west side currently we are now moving into 117 00:14:41,640 --> 00:14:45,600 the east side and we need to install the infrastructure to support this service so 118 00:14:45,600 --> 00:14:51,720 again access road on the east side as well as waterline and gas line header to 119 00:14:51,720 --> 00:14:55,720 manage the landfill gas that that is located or that will be produced in this 120 00:14:55,720 --> 00:14:59,880 area when we talk about the work to be completed again from landfill gas system 121 00:14:59,880 --> 00:15:04,680 we're going to stall about 4,600 feet of 18 inch header control and collection 122 00:15:04,680 --> 00:15:13,280 system a 950 foot leachate force main a non potable effluent waterline to help 123 00:15:13,280 --> 00:15:19,160 with not only cleaning and watering the roads but also a desk control and then 124 00:15:19,160 --> 00:15:25,600 again an all-purpose 10 inch reinforced concrete pavement road to make sure that 125 00:15:25,600 --> 00:15:30,200 we can get in and out of the landfill on the east side we had construction 126 00:15:30,200 --> 00:15:36,160 specifications prepared by SES consulting engineers that were released 127 00:15:36,160 --> 00:15:42,120 for review on March 16th of this year we sent the request to 463 companies with 128 00:15:42,120 --> 00:15:48,200 two active responses on April 22nd based on a review of the event of the RFP and 129 00:15:48,200 --> 00:15:51,720 the evaluation the lowest responsive company that was identified was Hammett 130 00:15:51,720 --> 00:15:56,560 Construction and with the 205 day proposed for construction we do 131 00:15:56,560 --> 00:16:01,160 recommend awarding the landfill gas header waterline and concrete road 132 00:16:01,160 --> 00:16:06,960 construction to Hammett Excavation I'd be glad to answer any questions that you 133 00:16:06,960 --> 00:16:14,840 might have at this time questions yes mr. Rebek go ahead 134 00:16:15,440 --> 00:16:23,000 Lee go ahead mr. madam chairman my question is regarding the landfill gas 135 00:16:23,000 --> 00:16:28,600 collection system it's probably a dumb question but I'm gonna ask it anyway so 136 00:16:28,600 --> 00:16:34,160 what do you do with the methane gas that you collect currently we are flaring 137 00:16:34,160 --> 00:16:38,840 that gas however as we speak we have at least nine contractors out at the 138 00:16:38,840 --> 00:16:45,080 landfill who are reviewing the system to install what we call a high BTU plant 139 00:16:45,080 --> 00:16:49,040 what we want to be able to do is take this material actually clean it up to 140 00:16:49,040 --> 00:16:54,240 pipeline grade quality and put it into the at most landfill or excuse me the 141 00:16:54,240 --> 00:16:58,560 at most natural gas pipeline that runs along the north end of our property to 142 00:16:58,560 --> 00:17:04,240 create a beneficial and usable product as a result of this so it's a it's a 143 00:17:04,240 --> 00:17:09,640 beneficial reuse of that material well that is excellent so this is an 144 00:17:09,640 --> 00:17:14,160 extension to an already existing landfill gas collection system that I 145 00:17:14,160 --> 00:17:16,600 understand that correctly that is correct we currently have the header 146 00:17:16,600 --> 00:17:20,840 that runs on the south and west side of facility what we want to do is create is 147 00:17:20,840 --> 00:17:25,960 complete the ring by running it along the east side mm-hmm all right well very 148 00:17:25,960 --> 00:17:30,920 good thank you thank you Karen did you have a question to Lee's question took 149 00:17:30,920 --> 00:17:36,680 care of it thank you thank you all right any other questions do we have a motion 150 00:17:36,680 --> 00:17:46,000 to approve this item motion to approve a motion okay it's been okay we have a 151 00:17:46,000 --> 00:17:54,080 motion and a second all in favor say aye aye okay that one carries the next item 152 00:17:54,080 --> 00:17:59,080 consider recommending the adoption of an ordinance of the city of Denton a Texas 153 00:17:59,080 --> 00:18:02,520 Home Rule Municipal Corporation authorizing the city manager or their 154 00:18:02,520 --> 00:18:07,400 designee to execute a contract with Hammett Excavation incorporated for the 155 00:18:07,400 --> 00:18:10,680 construction of the public disposal facility for the solid waste and 156 00:18:10,680 --> 00:18:15,040 recycling department providing for the expenditure of funds therefore and 157 00:18:15,040 --> 00:18:20,600 providing an effective date CSP 7568 awarded to Hammett Excavation 158 00:18:20,600 --> 00:18:28,520 incorporated in the not to exceed mount of 2 million 526 832 and 34 cents good 159 00:18:28,520 --> 00:18:31,760 morning again now Brian Bernhardt of solid waste director with city of Denton 160 00:18:31,760 --> 00:18:37,840 before you this morning to talk about our public disposal facility and award 161 00:18:37,840 --> 00:18:41,680 of a contract to Hammett construction company again what I want to try to do 162 00:18:41,680 --> 00:18:46,080 this morning is to define the need for the what we're going to call the PDF 163 00:18:46,080 --> 00:18:52,320 again the process to identify the contractor the recommendations for 164 00:18:52,320 --> 00:18:56,240 approval and answer any questions that you might have city of Dent public 165 00:18:56,240 --> 00:19:00,560 disposal PDF facility is located on and within the permitted boundaries of the 166 00:19:00,560 --> 00:19:04,840 city of Denton landfill purpose really is to provide a safe place and 167 00:19:04,840 --> 00:19:08,320 environment for residents to dispose of materials at the landfill what we try to 168 00:19:08,320 --> 00:19:12,200 do is it's actually separate from the working face so residents who don't have 169 00:19:12,200 --> 00:19:17,560 dump trailers don't have the big landfill equipment basically drop it on 170 00:19:17,560 --> 00:19:22,680 on a concrete pad the materials picked up and actually transferred to the 171 00:19:22,680 --> 00:19:28,640 working face keeps him separate from the landfill equipment and reason we need 172 00:19:28,640 --> 00:19:33,620 this facility built is because our current PDF is located within the 173 00:19:33,620 --> 00:19:37,040 footprint of the next landfill cell which is currently under construction so 174 00:19:37,040 --> 00:19:41,840 that facility will be removed I have to have a place to go so what we want to 175 00:19:41,840 --> 00:19:46,000 try to do is to go ahead and build a what we're going to consider a 30-year 176 00:19:46,000 --> 00:19:51,200 facility so that it increases our reliability and the safety that's going 177 00:19:51,200 --> 00:19:56,040 to be concerned with the construction we hope this facility will be complete by 178 00:19:56,040 --> 00:20:00,320 the end of the year so we can start using it again the work will be 179 00:20:00,320 --> 00:20:04,440 completed we've got about quarter million square feet in this facility it 180 00:20:04,440 --> 00:20:10,560 will include earthwork concrete road ramps pads pillars effluent water 181 00:20:10,560 --> 00:20:14,800 supply line for for water monitors electric litter control fences just 182 00:20:14,800 --> 00:20:20,120 everything that we need to make sure that this works and does not impact the 183 00:20:20,120 --> 00:20:24,840 environmental integrity of the facility with the request for proposal we had 184 00:20:24,840 --> 00:20:29,480 Biggs and Matthews environmental prepare our bid specs and documents it was 185 00:20:29,480 --> 00:20:36,440 released on March 12th we sent it to 461 companies we had four responses that were 186 00:20:36,440 --> 00:20:43,560 received on April 22nd of 2021 the results of the proposal evaluation is 187 00:20:43,560 --> 00:20:47,720 that Hammett again Hammett can excavation had the best overall and 188 00:20:47,720 --> 00:20:54,080 final offer with a 230 day construction time period we would recommend awarding 189 00:20:54,080 --> 00:20:58,920 the PDF contract to Hammett ex excavation would be glad to answer any 190 00:20:58,920 --> 00:21:06,960 questions that you might have regarding this questions yes go ahead Barbara is 191 00:21:06,960 --> 00:21:12,720 this the company we're working with here or proposing to could you repeat your 192 00:21:12,720 --> 00:21:20,280 question please no Hammett excavation is actually located in bottom Texas but 193 00:21:20,280 --> 00:21:23,360 they are the company that's currently doing the landfill cell expansion and 194 00:21:23,360 --> 00:21:27,320 and this is what they do they are their experts in the installation of these 195 00:21:27,320 --> 00:21:32,200 types of facilities so we're extremely comfortable in them having and building 196 00:21:32,200 --> 00:21:36,640 that the facilities as well as doing it on time and under budget so there's some 197 00:21:36,640 --> 00:21:42,920 synergy with our synergies quick all right other questions go ahead now you 198 00:21:42,920 --> 00:21:46,920 said it's a we're looking at a 30-year facility for this new one correct how 199 00:21:46,920 --> 00:21:50,200 old is the existing facility the existing facility was there for about 200 00:21:50,200 --> 00:21:53,520 ten years but again it was very rudimentary was basically just a pad 201 00:21:53,520 --> 00:21:59,240 with some some a frame type concrete barriers you dumped it on the pad they 202 00:21:59,240 --> 00:22:04,440 scooped it up this is more in line with a I'm gonna call it a pseudo transfer 203 00:22:04,440 --> 00:22:09,320 station so we drop it on a pad it goes down into a truck a lot less moving parts 204 00:22:09,320 --> 00:22:14,240 but again cleaner safer for our residents and in you know in the off 205 00:22:14,240 --> 00:22:19,880 chance that we have an extreme rate event it allows us to really keep that 206 00:22:19,880 --> 00:22:26,360 the landfill running at that at optimal speed okay okay thank you any other 207 00:22:26,360 --> 00:22:33,560 questions okay do we have a motion to approve this item go move the moves and 208 00:22:33,560 --> 00:22:44,280 second I guess we'll give that one to Barbara all in favor say aye aye motion 209 00:22:44,280 --> 00:22:49,200 carries thank you thank you very much next item is management reports so thank 210 00:22:49,200 --> 00:22:53,800 you madam chair and members of the PB in your management the reports this time 211 00:22:53,800 --> 00:22:58,680 around we did send you a memo on the budget process I think mr. Ryback had 212 00:22:58,680 --> 00:23:03,400 previously kind of asked for just some detail on that and Cassie Ogden our 213 00:23:03,400 --> 00:23:08,160 director finances here if if there's any questions regarding the content of that 214 00:23:08,160 --> 00:23:19,160 memo or just any general questions about the budget process any questions I would 215 00:23:19,160 --> 00:23:21,840 love to ask some questions but unfortunately I had not yet had a 216 00:23:21,840 --> 00:23:25,920 chance to read the memo having been out of town over the weekend if you could 217 00:23:25,920 --> 00:23:31,480 give me a few minutes and come back to this I would appreciate it that's that's 218 00:23:31,480 --> 00:23:36,080 fine mr. Ryback that no issues with that the other alternative too is if if you'd 219 00:23:36,080 --> 00:23:40,120 like to set something up or reach out to miss Ogden she'll be happy to to meet 220 00:23:40,120 --> 00:23:44,360 with you individually or have a call with you and and answer any questions so 221 00:23:44,360 --> 00:23:52,880 but again if it's up to you so to the next item that we have go ahead no I'm 222 00:23:52,880 --> 00:23:55,520 just gonna say I would appreciate it if we could give me a couple minutes and 223 00:23:55,520 --> 00:23:59,360 then I'll I can get back to it and ask any questions yes sir if that's all right 224 00:23:59,360 --> 00:24:03,920 with you madam chairman sure that's fine go ahead so to the next item that we 225 00:24:03,920 --> 00:24:09,720 have is just the calendar for future agenda items we did have an item 226 00:24:09,720 --> 00:24:14,240 scheduled for for today that was you know slipped back and so that I'll probably 227 00:24:14,240 --> 00:24:17,920 come back to you on the 28th but I think that generally speaking the budget items 228 00:24:17,920 --> 00:24:22,360 that are listed on here with the dates are in order and consistent I think with 229 00:24:22,360 --> 00:24:27,640 what's been provided to you in that in that budget memo as well and then finally 230 00:24:27,640 --> 00:24:32,160 the the last item that we have for you is just a new business action matrix 231 00:24:32,160 --> 00:24:36,360 again these are the same items that we've had the turn of the first two and 232 00:24:36,360 --> 00:24:41,160 we're planning to come back to the PB and do time to address those and then the 233 00:24:41,160 --> 00:24:45,640 last time that was added was just a legislative update as you know the 234 00:24:45,640 --> 00:24:49,520 legislative session has concluded there's a number of bills still kind of 235 00:24:49,520 --> 00:24:54,200 waiting for the governor to to potentially veto or sign or just let 236 00:24:54,200 --> 00:25:00,320 pass there's there's also the possibility of a special session that 237 00:25:00,320 --> 00:25:03,840 might be called by the by the by the governor but we are working with our 238 00:25:03,840 --> 00:25:09,440 legislative consultants and and do plan to come back to you probably sometime in 239 00:25:09,440 --> 00:25:16,000 July with with an update of of all all matters related to legislative activity 240 00:25:16,000 --> 00:25:20,840 impacting any of our utilities so again that that's on the schedule and be happy 241 00:25:20,840 --> 00:25:25,360 to answer any questions that I mean you ever might have on any of that any 242 00:25:25,360 --> 00:25:33,080 questions all right have you had a chance to read it Lee or you need a few 243 00:25:33,080 --> 00:25:37,600 more minutes yes ma'am I have thank you very much and I do have a couple of 244 00:25:37,600 --> 00:25:43,640 questions okay she's coming up to the podium already well I was wondering it 245 00:25:43,640 --> 00:25:48,880 seems that we use the departments are using baseline budgeting so that means 246 00:25:48,880 --> 00:25:52,840 last year's budget is always the start of next year's but I understand that 247 00:25:52,840 --> 00:25:59,320 correctly from the memo yes that is correct okay next item is I was 248 00:25:59,320 --> 00:26:03,040 wondering does the if we're starting with the baseline each year may I assume 249 00:26:03,040 --> 00:26:10,000 that budgets never go below the baseline but always above not necessarily if 250 00:26:10,000 --> 00:26:18,000 there were one-time expenses we do back those out before we roll it forward and 251 00:26:18,000 --> 00:26:24,280 if we always look at a three-year history of the expenses so if the 252 00:26:24,280 --> 00:26:29,800 department historically has been spending less than their baseline we 253 00:26:29,800 --> 00:26:34,920 will work with them and they could possibly reduce their budget their new 254 00:26:34,920 --> 00:26:43,080 baseline okay so the baseline is in the hard bottom it's still flexible enough 255 00:26:43,080 --> 00:26:49,680 based on actual expenditures possibly one time and also ongoing correct okay 256 00:26:49,680 --> 00:26:54,480 the other item I noticed is that there is a quarterly review by the budget 257 00:26:54,480 --> 00:27:02,600 manager yes the quarterly review takes place before our quarterly report is 258 00:27:02,600 --> 00:27:08,280 published and so we do provide that quarterly report to PB and council but 259 00:27:08,280 --> 00:27:14,280 we go through and look at any all of the expenditures ensure that we are where we 260 00:27:14,280 --> 00:27:22,240 think we were forecasting and do kind of a deeper dive of the budgets very good 261 00:27:22,240 --> 00:27:26,900 this quarterly budget report is that something that we typically see as a 262 00:27:26,900 --> 00:27:35,200 utility board yes we do provide that to the pub and to the council okay and it's 263 00:27:35,200 --> 00:27:39,400 very much those are my questions and madam chairman I appreciate you giving me 264 00:27:39,400 --> 00:27:43,920 a little flexibility here and mr. Ryback those quarterly reports are also on the 265 00:27:43,920 --> 00:27:47,880 city's website under under the finance department and there's a history there 266 00:27:47,880 --> 00:27:54,560 of those reports along with annual financial reports as well okay well very 267 00:27:54,560 --> 00:28:01,680 good thank you okay the next item is concluding items does any board member 268 00:28:01,680 --> 00:28:06,400 have any items they'd like added to a future agenda or any congratulations or 269 00:28:06,400 --> 00:28:14,680 whatever no okay and we will move into our work session receive a report and 270 00:28:14,680 --> 00:28:18,480 hold a discussion and give staff direction regarding a proposed high 271 00:28:18,480 --> 00:28:22,520 performance computing operation on leased property at the Denton Energy 272 00:28:22,520 --> 00:28:27,000 Center under development by Tanasca 273 00:28:27,000 --> 00:28:34,800 well good morning pub members it was actually 2017 I was thinking when the 274 00:28:34,800 --> 00:28:39,160 last time that I presented to pub was so I believe miss Parker you were here 275 00:28:39,160 --> 00:28:43,080 miss Russell was on the board at the time but everyone else is new but I'm 276 00:28:43,080 --> 00:28:46,160 Jessica Rogers I'm the director of economic development for the city of 277 00:28:46,160 --> 00:28:50,900 Denton I previously was with DME so they did get to see me a little bit more in 278 00:28:50,900 --> 00:28:55,840 the past but I'm going to be leading the presentation today of course Terry 279 00:28:55,840 --> 00:29:00,440 Nolte is here with DME and as well as we have representatives from Tanasca on the 280 00:29:00,440 --> 00:29:04,560 line with us and so in the event that I can't answer a very technical question I 281 00:29:04,560 --> 00:29:14,440 have a lot of help so let me sort through these thing go 282 00:29:14,440 --> 00:29:28,360 all right so for you today I'm going to be presenting on and the development of 283 00:29:28,360 --> 00:29:33,640 a modular data mining prospect and so this project came to us through Tanasca 284 00:29:33,640 --> 00:29:37,900 Tanasca is a large private energy company that specializes in power plant 285 00:29:37,900 --> 00:29:44,080 development natural gas and electric power marketing and a number of things 286 00:29:44,080 --> 00:29:49,420 so DME and economic development have been working with Tanasca with a 287 00:29:49,420 --> 00:29:53,840 specific data center client on the development of a high density computing 288 00:29:53,840 --> 00:29:57,720 operation and I have pictures to kind of show what that looks like here in a few 289 00:29:57,720 --> 00:30:02,200 slides this project is going to be unique because it has an extraordinarily 290 00:30:02,200 --> 00:30:06,920 high electric demand and to sort of put that in perspective is this specific 291 00:30:06,920 --> 00:30:11,840 projects demand is going to be larger than the entire city of Denton demand at 292 00:30:11,840 --> 00:30:16,080 build out and this project is also unique because they're looking to 293 00:30:16,080 --> 00:30:20,440 construct this project at the Denton Energy Center and that's because that 294 00:30:20,440 --> 00:30:25,180 site has adequate transmission and substation capacity really with minimal 295 00:30:25,180 --> 00:30:29,160 build out for this particular project so it's really a unique project and Denton 296 00:30:29,160 --> 00:30:32,080 has a unique location that can meet their needs and we're gonna go through 297 00:30:32,080 --> 00:30:37,320 all of sort of the details of the introductory comments over the next few 298 00:30:37,320 --> 00:30:43,520 slides so what does this look like in terms of a project so the modular data 299 00:30:43,520 --> 00:30:47,600 mining campus where they're going to be performing those high density and high 300 00:30:47,600 --> 00:30:51,920 performance competing applications really looks exactly exactly like a 301 00:30:51,920 --> 00:30:56,280 modular data mining campus would look like in your mind they're sort of the 302 00:30:56,280 --> 00:31:01,080 size of a semi truck sort of can shipping container and they'd be located 303 00:31:01,080 --> 00:31:06,480 there on the site so this is the deck schematic so this is the south side of 304 00:31:06,480 --> 00:31:11,160 the deck right here sort of kind of on the airport side of the deck for those 305 00:31:11,160 --> 00:31:14,880 like me who are directionally challenged and then this is what it would look like 306 00:31:14,880 --> 00:31:18,200 on the ground here and this is where they would perform things like 307 00:31:18,200 --> 00:31:23,040 cryptocurrency mining doing competing operations for artificial intelligence 308 00:31:23,040 --> 00:31:28,440 DNA mapping and machine learning and those sorts of things so here's a good 309 00:31:28,440 --> 00:31:33,360 aerial of the deck site so here's the Denton Energy Center the Jim Crystal 310 00:31:33,360 --> 00:31:38,280 substation so this project is being proposed to be developed in three phases 311 00:31:38,280 --> 00:31:43,280 so phase one is the south side of the Denton Energy Center phases one and two 312 00:31:43,280 --> 00:31:48,320 which is about 19 acres and the goal would be to have that operation up and 313 00:31:48,320 --> 00:31:53,160 running September to November this year in phases one and two and then phase 314 00:31:53,160 --> 00:31:57,320 three is 11 acres on the north side of the Denton Energy Center with target 315 00:31:57,320 --> 00:32:03,440 operation date of March 2022 no surprise but electric will be supplied from the 316 00:32:03,440 --> 00:32:08,480 Jim Crystal substation and because of the extraordinarily high demand of the 317 00:32:08,480 --> 00:32:12,560 project it's a little bit different than projects that I usually get so we're not 318 00:32:12,560 --> 00:32:16,560 negotiating an economic development incentive but we are looking at a 319 00:32:16,560 --> 00:32:20,440 purchase power agreement and that's sort of again extraordinarily unique 320 00:32:20,440 --> 00:32:24,360 situation where we have such a high demand and high user that we'd be 321 00:32:24,360 --> 00:32:28,760 looking at a purchase power agreement they'll the company will also be leasing 322 00:32:28,760 --> 00:32:34,280 the land from the city of Denton and that will be market-based a market-based 323 00:32:34,280 --> 00:32:39,920 lease rate so the property because the city owns it is currently zoned public 324 00:32:39,920 --> 00:32:44,360 facility so we do have to initiate a rezoning process to allow for a private 325 00:32:44,360 --> 00:32:49,200 use and so we are in the process of doing that right now I believe the PNZ 326 00:32:49,200 --> 00:32:53,320 meeting is upcoming later this month we'll be rezoning that those sections of 327 00:32:53,320 --> 00:32:58,920 the property from public facility to light industrial to allow for this use 328 00:32:58,920 --> 00:33:04,320 so speaking to why this particular project is pursued here in Denton and 329 00:33:04,320 --> 00:33:09,040 sort of a quick list of what did the customer need they needed transmission 330 00:33:09,040 --> 00:33:14,280 level voltage they needed really high reliability but able to contain curtail it 331 00:33:14,280 --> 00:33:18,800 when the system conditions called for it they needed rates pursuant to a PPA 332 00:33:18,800 --> 00:33:24,920 access to the workforce to operate the computing center and one thing that's 333 00:33:24,920 --> 00:33:28,640 really particular to Denton is access to renewable energy was extraordinarily 334 00:33:28,640 --> 00:33:32,120 important for this client and they wanted to be somewhere where they had a 335 00:33:32,120 --> 00:33:36,320 good community and environmental partner for their goals and of course there on 336 00:33:36,320 --> 00:33:40,160 the right you'll see that didn't was able to meet and really exceed all of 337 00:33:40,160 --> 00:33:44,880 the expectations of this client so this really was a great partnership and a way 338 00:33:44,880 --> 00:33:49,880 to utilize property at the Denton Energy Center and that has a lot of benefits 339 00:33:49,880 --> 00:33:55,560 for both the company and the city so getting into direct benefits for the 340 00:33:55,560 --> 00:33:59,480 city of Denton so this particular project is in alignment with our economic 341 00:33:59,480 --> 00:34:03,720 development strategic plan this board I don't know how involved you were in that 342 00:34:03,720 --> 00:34:07,360 process throughout the pandemic but we just finished our economic development 343 00:34:07,360 --> 00:34:11,880 strategic plan it was adopted in February of this year and in that plan 344 00:34:11,880 --> 00:34:16,040 it specifically calls out strategic growth areas and identifies what we 345 00:34:16,040 --> 00:34:21,280 would consider high value development areas data centers like this operation 346 00:34:21,280 --> 00:34:24,720 were one of the few industries that were specifically called out as having 347 00:34:24,720 --> 00:34:29,000 extreme benefit here in the city of Denton in terms of our economic value a 348 00:34:29,000 --> 00:34:34,120 lot of that has to do with having our own electric utility so we certainly are 349 00:34:34,120 --> 00:34:40,200 pursuing data centers as an economic development strategy the second point 350 00:34:40,200 --> 00:34:43,280 would be that the full build out of the project so all three phases it would 351 00:34:43,280 --> 00:34:46,720 more than double all of DME is current retail energy sales and create 352 00:34:46,720 --> 00:34:52,200 additional revenues for our general fund in terms of franchise 353 00:34:52,200 --> 00:34:58,560 fees ROI energy sales revenues on sales taxes as well as property taxes 354 00:34:58,560 --> 00:35:04,320 related to the business personal property of the client and then lastly 355 00:35:04,320 --> 00:35:09,760 this does have the potential to increase DME system load profile by reduce doing 356 00:35:09,760 --> 00:35:15,840 that could reduce costs to serve the existing customers so we always like to 357 00:35:15,840 --> 00:35:19,640 examine what are the risks and the rewards of any project as no project is 358 00:35:19,640 --> 00:35:24,560 without a risk right so we looked at the commercial risks of the project so for 359 00:35:24,560 --> 00:35:28,360 this particular project of course it's such a large-scale project that the 360 00:35:28,360 --> 00:35:33,200 customers credit is something that we look into so we will work to mitigate 361 00:35:33,200 --> 00:35:37,840 that through the actual purchase power agreement we also looked at what's the 362 00:35:37,840 --> 00:35:43,640 lifecycle of the business plan how long can this modular operation continue and 363 00:35:43,640 --> 00:35:47,320 what happens when it's over and so in our discussions and research really 364 00:35:47,320 --> 00:35:51,520 knowing that there are other potential computing operations going forward to 365 00:35:51,520 --> 00:35:55,720 expect coming online in the future and so we certainly can continue to explore 366 00:35:55,720 --> 00:35:58,640 what those opportunities are as we're going through the first few years of 367 00:35:58,640 --> 00:36:03,040 this operation and lastly is that this does consume a significant portion of 368 00:36:03,040 --> 00:36:07,640 available transmission capacity in our industrial area that's not a huge risk 369 00:36:07,640 --> 00:36:12,160 all that means is that if someone needed the power kind of soon thereafter we 370 00:36:12,160 --> 00:36:15,240 might have to go through a little bit of a longer process to get the 371 00:36:15,240 --> 00:36:19,720 infrastructure there to serve them it's not a huge delay not a significance 372 00:36:19,720 --> 00:36:23,880 concern for our staff but something that we want to acknowledge in terms of 373 00:36:23,880 --> 00:36:28,040 benefits to the city again significant revenues increasing based on the sales 374 00:36:28,040 --> 00:36:34,880 of the energy seeing some general fund relief which is always positive and then 375 00:36:34,880 --> 00:36:40,440 some electric rate relief possible and then lastly is again a little bit on our 376 00:36:40,440 --> 00:36:46,240 economic development strategic plan but a possible funding source for what we're 377 00:36:46,240 --> 00:36:49,280 calling our economic development catalyst fund so this is the fund with 378 00:36:49,280 --> 00:36:54,520 which we would fund economic development programming and then lastly that this 379 00:36:54,520 --> 00:36:59,760 does utilize right now that we have transmission capacity surplus so this is 380 00:36:59,760 --> 00:37:07,440 able to take advantage of our current situation so jumping into timeline and 381 00:37:07,440 --> 00:37:11,840 that's next step so this project because it's a modular installation is going to 382 00:37:11,840 --> 00:37:16,600 really have an aggressive timeline and in terms of how quickly it can be 383 00:37:16,600 --> 00:37:21,360 installed so we're gonna start there we've started the rezoning process it 384 00:37:21,360 --> 00:37:26,320 goes to public hearing at the Planning and Zoning Commission on June 23rd and 385 00:37:26,320 --> 00:37:31,720 that's to rezone the property again to light industrial as soon as the zoning 386 00:37:31,720 --> 00:37:35,760 is in place then we can begin permitting the project and they can move really 387 00:37:35,760 --> 00:37:42,760 quickly the project will come back to pub and to City Council in terms of both 388 00:37:42,760 --> 00:37:47,200 the PPA and the reason sorry PPA will come back to pub and council the 389 00:37:47,200 --> 00:37:51,600 rezoning process will go through City Council but the real goal is to get this 390 00:37:51,600 --> 00:38:00,280 project online really late fall 2021 as soon as we possibly can so continuing on 391 00:38:00,280 --> 00:38:05,200 those next steps so what we're kind of doing on the staff side now one working 392 00:38:05,200 --> 00:38:09,120 the rezoning process but two working on negotiating that comprehensive purchase 393 00:38:09,120 --> 00:38:13,020 power agreement and that's going to include what the costs of the power are 394 00:38:13,020 --> 00:38:18,080 the terms of the lease any type of that credit credit or collateral requirement 395 00:38:18,080 --> 00:38:23,520 and then also getting the final details about the interconnection and any type 396 00:38:23,520 --> 00:38:27,320 of operational requirements that would be needed to operate that facility and 397 00:38:27,320 --> 00:38:31,520 lastly I'll just make a point that we do have the economic growth writer that's 398 00:38:31,520 --> 00:38:36,360 in your rate structure this project is so large it would not qualify for that 399 00:38:36,360 --> 00:38:43,280 that's one of the reasons we're moving to a PPA so our direction today and that 400 00:38:43,280 --> 00:38:49,000 we're seeking is to provide 120 day exclusivity exclusivity period on the 401 00:38:49,000 --> 00:38:52,920 deck site so simply allow us the time to negotiate the terms of the PPA with this 402 00:38:52,920 --> 00:38:59,720 project and then move the PPA through its approval processes and so with that I 403 00:38:59,720 --> 00:39:04,360 will stop talking and I'm sure there are lots of questions on this project but 404 00:39:04,360 --> 00:39:10,460 no I've got I've got some assistance here as needed okay thank you Jessica any 405 00:39:10,460 --> 00:39:16,440 questions and madam chair and PB members we also have a couple of folks with the 406 00:39:16,440 --> 00:39:20,020 company too so if there are questions for them they'll be happy to answer any 407 00:39:20,020 --> 00:39:26,400 questions you might have okay all right questions all right we'll start with 408 00:39:26,400 --> 00:39:39,080 Karen sorry Ben I was curious about what since this is placing such a high demand 409 00:39:39,080 --> 00:39:43,880 on our electric generation or electric transmission I guess what will happen 410 00:39:43,880 --> 00:39:49,480 when there's another tropical storm or winter storm URI and we need that 411 00:39:49,480 --> 00:40:01,800 electricity for the ratepayers of denton come on come on down Terry Nolte 412 00:40:01,800 --> 00:40:06,400 assistant general manager DME again the way that this transaction is being 413 00:40:06,400 --> 00:40:12,040 structured this is a fully interruptible load so we would have the ability to 414 00:40:12,040 --> 00:40:17,280 interrupt this load for a number of for any reason and certainly if we had a 415 00:40:17,280 --> 00:40:23,360 situation like URI again it would be the first to go okay are they able I mean I 416 00:40:23,360 --> 00:40:26,480 know that the target distribution center has its own generators that can kind of 417 00:40:26,480 --> 00:40:31,680 get off the grid would it is this just a project that is too big for them to be 418 00:40:31,680 --> 00:40:38,400 able to generate any of their own there are they are not planning to generate 419 00:40:38,400 --> 00:40:44,280 and I think it's a it's a cost issue yeah having a backup generator of this 420 00:40:44,280 --> 00:40:50,200 size would be they'd be a small utility right effectively so they're relying on 421 00:40:50,200 --> 00:40:55,400 that intermittency I'm sorry the interrupt ability in order to make the 422 00:40:55,400 --> 00:41:01,160 economics work effectively I did also just want to commend utility staff in 423 00:41:01,160 --> 00:41:04,920 general for your willingness and eagerness to think outside the box 424 00:41:04,920 --> 00:41:09,560 because this is a very creative seems like a very creative project that not 425 00:41:09,560 --> 00:41:14,200 everybody would have would have considered so I'll just give some accolades 426 00:41:14,200 --> 00:41:18,840 to ten ask me to ask is one of the largest players in the in the power 427 00:41:18,840 --> 00:41:28,280 business in Texas and so the innovation is really theirs well yours too so thank 428 00:41:28,280 --> 00:41:36,560 you it's true all right Ben so I guess I'm curious about the land what why do 429 00:41:36,560 --> 00:41:39,440 we have so much land that we're not using and then did we have a purpose for 430 00:41:39,440 --> 00:41:46,360 it in the future or otherwise my understanding and I was not here at the 431 00:41:46,360 --> 00:41:49,760 time that the deck property was Tony might be able to answer the question 432 00:41:49,760 --> 00:41:54,160 better but you know typically when you build a power plant you want to have a 433 00:41:54,160 --> 00:41:59,760 buffer area around it in order to control access and and as with other 434 00:41:59,760 --> 00:42:04,280 property purchases that the city does for utilities you kind of have to buy 435 00:42:04,280 --> 00:42:10,160 what the parcel is so the acreage is really determined by what what the 436 00:42:10,160 --> 00:42:17,000 parcel is okay Terry's exactly right I mean it was really a kind of all or 437 00:42:17,000 --> 00:42:23,880 nothing on that particular land deal but I will tell you that even then and now 438 00:42:23,880 --> 00:42:30,520 there is the potential future use of that property for a service center annex 439 00:42:30,520 --> 00:42:36,560 for the city as you know especially with hunter coal ranch coming in you know the 440 00:42:36,560 --> 00:42:41,680 the likelihood that we're gonna be able to serve much of that you know southwest 441 00:42:41,680 --> 00:42:45,920 kind of side of the community becomes a real challenge out of our current 442 00:42:45,920 --> 00:42:49,680 campuses and the current service center over here at Texas Street and so that's 443 00:42:49,680 --> 00:42:53,920 something we that we've been working on obviously if if this project comes into 444 00:42:53,920 --> 00:42:58,480 play we'll need to kind of reevaluate that but I think the I think the 445 00:42:58,480 --> 00:43:04,040 benefits of this project certainly outweigh the potential drawbacks and 446 00:43:04,040 --> 00:43:09,340 those having to rethink kind of a service center annex property so is is 447 00:43:09,340 --> 00:43:16,520 to ask a recording in progress are they effectively going to use all remaining 448 00:43:16,520 --> 00:43:22,080 available land or like could we continue like do that service center annex as 449 00:43:22,080 --> 00:43:28,460 well what I think there's still gonna be additional land you know one of the one 450 00:43:28,460 --> 00:43:31,320 of the projects that will be coming through there will be the loot 288 451 00:43:31,320 --> 00:43:36,840 project that's gonna bisect some of the property that DME owns and so I'm trying 452 00:43:36,840 --> 00:43:41,120 to remember I think it's property on the south side of that that would still be 453 00:43:41,120 --> 00:43:46,200 available to us and it'll just have to be a much you know smaller scale kind of 454 00:43:46,200 --> 00:43:48,600 annex than what we've been talking about but that's something that we'll be 455 00:43:48,600 --> 00:43:52,120 working through with the with the architects on that so yeah much of much 456 00:43:52,120 --> 00:43:57,920 of the land at the deck is actually impeded by easements for the gas lines 457 00:43:57,920 --> 00:44:03,840 and the transmission lines out there so really this these two areas are areas 458 00:44:03,840 --> 00:44:10,400 that could be developed and you know just an innovative use of property okay 459 00:44:10,400 --> 00:44:17,880 thank you okay Lee did you have questions Lee can you hear me yes ma'am 460 00:44:17,880 --> 00:44:23,400 chairman I can't hear you my question is has to do with the 461 00:44:23,400 --> 00:44:29,120 interrupt ability of power that's very unusual for a data center operation a 462 00:44:29,120 --> 00:44:33,400 little unclear about it and I've had a little trouble hearing from the meeting 463 00:44:33,400 --> 00:44:37,800 room so you may have covered this but I wasn't able to make it out very well so 464 00:44:37,800 --> 00:44:42,440 could you tell us a little bit more either Terry or the folks from to ask 465 00:44:42,440 --> 00:44:49,000 about the interrupt ability of power in this data center operation I think I'll 466 00:44:49,000 --> 00:44:55,640 defer to mr. Hemshot with with to ask on that one 467 00:44:55,640 --> 00:45:00,120 hey good morning how's my volume can everybody hear me okay 468 00:45:00,120 --> 00:45:06,240 yeah wow real good okay thanks good morning thank you very much for for the 469 00:45:06,240 --> 00:45:11,200 for taking the time and answering for asking these questions I also want to 470 00:45:11,200 --> 00:45:15,920 compliment the you know the city Terry staff everyone has been just excellent 471 00:45:15,920 --> 00:45:21,760 responsive and Terry very innovative as well the city has been just just just a 472 00:45:21,760 --> 00:45:27,680 pleasure to work with I want to I want to start to say in terms of your direct 473 00:45:27,680 --> 00:45:31,540 question on the ability yes this is different this this is called 474 00:45:31,540 --> 00:45:37,120 effectively tier zero data center tier four would be think of all the 475 00:45:37,120 --> 00:45:41,480 applications on the internet where response time is in milliseconds to a 476 00:45:41,480 --> 00:45:46,280 given to a given poll on the system and that it has to have multiple layers of 477 00:45:46,280 --> 00:45:52,040 redundancies in order to actually fill that to fill that need those layers of 478 00:45:52,040 --> 00:45:56,000 redundancies are you know important in that application but they do layer on a 479 00:45:56,000 --> 00:45:59,920 lot of inefficiencies such that you know they have to have multiple backup 480 00:45:59,920 --> 00:46:03,200 systems they have to have multiple cooling systems multiple of everything 481 00:46:03,200 --> 00:46:08,040 to have that redundancy in this example because these applications are more 482 00:46:08,040 --> 00:46:12,900 computing process intensive where they occur over a period of time and they can 483 00:46:12,900 --> 00:46:16,600 be scheduled you know I go back in time and think about you know some of the you 484 00:46:16,600 --> 00:46:19,600 know initial classes that I had in computer science where you're actually 485 00:46:19,600 --> 00:46:24,800 scheduling time on a given piece of computing equipment you know back way 486 00:46:24,800 --> 00:46:29,720 back when it's a similar thing in this case here where they're scheduling over 487 00:46:29,720 --> 00:46:33,360 a period of time so an interruption is more of just a delay of the process and 488 00:46:33,360 --> 00:46:42,960 it's not you know so as critical as it is for a tier 4 data center. So the time that's 489 00:46:42,960 --> 00:46:49,360 being used in your modular systems are either scheduled or are they like flow 490 00:46:49,360 --> 00:46:57,440 through historical data gathering from different organizations? I'm sorry the 491 00:46:57,440 --> 00:47:03,820 interrupt ability when it occurs or I'm sorry that's okay we have structured the 492 00:47:03,820 --> 00:47:09,280 question a little awkwardly what I've asked of asking is first to clarify that 493 00:47:09,280 --> 00:47:14,240 you're talking about the time in your modular systems is actually mostly 494 00:47:14,240 --> 00:47:20,840 scheduled rather than flow through and if it is flow through is it just staging 495 00:47:20,840 --> 00:47:27,480 for keeping historical data over time? Okay so the a lot of the a lot of the 496 00:47:27,480 --> 00:47:31,640 activity will be on mining which is flow through or just a continuous process and 497 00:47:31,640 --> 00:47:35,480 that process can be interrupted virtually at any point in time. Oh the 498 00:47:35,480 --> 00:47:40,440 data mining I got you thank you. Right in terms of the any of the artificial 499 00:47:40,440 --> 00:47:43,440 intelligence video rendering applications like that those are more 500 00:47:43,440 --> 00:47:48,320 scheduled applications. Okay thank you that makes a little more clear I 501 00:47:48,320 --> 00:47:55,840 appreciate it. Sure okay and Barbara go ahead if you can hear me. Yes I was just 502 00:47:55,840 --> 00:48:00,440 going to say that the presentation answered a lot of questions and I 503 00:48:00,440 --> 00:48:08,360 appreciate the information that was presented to us thank you very much. Okay 504 00:48:08,360 --> 00:48:14,760 and and I want to echo what Karen said that this is very creative and it's 505 00:48:14,760 --> 00:48:19,380 going to benefit the city greatly so I'm certainly in favor I guess what you're 506 00:48:19,380 --> 00:48:24,480 looking for is some kind of consensus direction? We're looking for 507 00:48:24,480 --> 00:48:28,920 recommendation from this board to council which will be discussing tomorrow 508 00:48:28,920 --> 00:48:35,520 on the 120 day exclusivity period for continuing negotiations. Before I forget 509 00:48:35,520 --> 00:48:40,920 I do have one question we have no issues with our bonds on this arrangement. No 510 00:48:40,920 --> 00:48:45,440 ma'am we've sought out an opinion from from bond council and we're good to 511 00:48:45,440 --> 00:48:51,120 proceed with with the project. Okay excellent thank you. All right so do we 512 00:48:51,120 --> 00:48:56,560 have a consensus to move forward to recommend moving forward with this 513 00:48:56,560 --> 00:49:06,400 project? Sure. Okay yes all right is that what you need? Okay all right our final 514 00:49:06,400 --> 00:49:10,240 item and we'll be adjourning into a closed session so I do need to read the 515 00:49:10,240 --> 00:49:14,320 entire thing and it's a long e but it will take us approximately five minutes 516 00:49:14,320 --> 00:49:19,240 or so from the time we close to go into we we're moving into the work session 517 00:49:19,240 --> 00:49:25,440 room so that we can have a zoom. So yeah so so Barbara and Lee if you guys will 518 00:49:25,440 --> 00:49:29,040 hold on we're we're all gonna jump on zoom and so I think it'll be a little bit 519 00:49:29,040 --> 00:49:33,160 easier for us to hear everyone. But here is what the closed meeting is about 520 00:49:33,160 --> 00:49:37,560 deliberations regarding certain public power utilities competitive matters 521 00:49:37,560 --> 00:49:42,160 under Texas Government Code section five five one point zero eight six 522 00:49:42,160 --> 00:49:46,560 consultation with attorneys under Texas Government Code section five five one 523 00:49:46,560 --> 00:49:51,840 point zero seven one receive a presentation from staff regarding 524 00:49:51,840 --> 00:49:55,960 public power competitive and financial matters regarding the provision of 525 00:49:55,960 --> 00:50:00,320 electric power to a perspective large electric demand customer discuss 526 00:50:00,320 --> 00:50:04,920 deliberate and provide direction to staff regarding the same consultation 527 00:50:04,920 --> 00:50:09,480 with city's attorneys regarding the legal issues associated with the matter 528 00:50:09,480 --> 00:50:13,560 where the public discussion of these legal matters would conflict with the 529 00:50:13,560 --> 00:50:17,400 duty of the city attorneys to the city of Denton and the Denton City Council 530 00:50:17,400 --> 00:50:21,680 under Texas disciplinary rules of the professional conduct at the state bar of 531 00:50:21,680 --> 00:50:30,280 Texas or would jeopardize the city's legal position in any administrative 532 00:50:30,280 --> 00:50:34,680 proceeding or potential litigation any final action decision or vote on the 533 00:50:34,680 --> 00:50:38,720 matter deliberated in the closed meeting will only be taken in an open meeting 534 00:50:38,720 --> 00:50:42,720 that is held in compliance with Texas Government Code chapter five five one 535 00:50:42,720 --> 00:50:47,320 except to the extent such final action decision or vote is taken in the closed 536 00:50:47,320 --> 00:50:51,520 meeting in accordance with the provisions of section five five one point zero eight 537 00:50:51,520 --> 00:50:56,720 six of the Texas Governmental Code the public power exception the public 538 00:50:56,720 --> 00:51:00,760 utilities board serves reserves the right to adjourn into a closed meeting or 539 00:51:00,760 --> 00:51:05,400 executive session as authorized by Texas Government Code section five five one 540 00:51:05,400 --> 00:51:12,560 point zero zero one the Texas Open Meetings Act on any item on its open 541 00:51:12,560 --> 00:51:16,560 meeting agenda or to reconvene in the continuation of the closed meeting on the 542 00:51:16,560 --> 00:51:20,520 closed meeting items noted above in accordance with the Texas Open Meetings 543 00:51:20,520 --> 00:51:25,280 Act including without limitation section five five one point zero seven one through 544 00:51:25,280 --> 00:51:32,800 five five one point zero eight six of the Texas Open Meetings Act thanks 545 00:51:32,800 --> 00:51:38,720 Catherine going into closed session thank you