WEBVTT 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 00:00:07.000 --> 00:00:12.560 Denton public utilities board meeting the first item is public comments at 00:00:12.560 --> 00:00:22.640 this point are there anybody on the line or here that wishes to speak okay all 00:00:22.640 --> 00:00:28.780 right then we'll move into the regular meeting first item is agenda oh I'm 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 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 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 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 00:01:25.760 --> 00:01:34.880 lot of trouble hearing the people in chambers so maybe now can you hear can 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 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 00:01:46.160 --> 00:01:48.560 second we're gonna see there might be some technique can you hear me this has 00:01:48.560 --> 00:01:54.880 been jumper we are standing by for technical difficulties 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 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 00:02:26.400 --> 00:02:49.120 is legible or audible Tony that was clear as a bell just fine that one must 00:02:49.120 --> 00:02:57.520 have been worn out it's perfect much better thank you 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 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 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 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 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 00:03:56.960 --> 00:04:06.800 second on approving the items all in favor say aye aye opposed okay Liam 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 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 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 00:04:45.880 --> 00:04:57.720 very a very intense feedback from virtual host when that happened okay can 00:04:57.720 --> 00:05:00.240 you hear me now 00:05:00.240 --> 00:05:08.120 Rachel can you hear me no still very faint 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 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 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 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 00:05:54.800 --> 00:05:57.800 items or not 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 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 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 00:06:21.840 --> 00:06:32.880 a and G are you in favor yes Barbara yes okay okay thank you all right 00:06:32.880 --> 00:06:40.280 item a I just had a quick question I have a vague memory of this happening 00:06:40.280 --> 00:06:49.360 before of a vendor bidding and then changing their their bid can somebody 00:06:49.360 --> 00:06:57.400 remind me if this is a recurring problem with wind energy or am I just imagining 00:06:57.400 --> 00:07:05.240 things can you hear me yes okay Terry Nolte assistant general manager DME so 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 00:07:17.880 --> 00:07:25.480 in early 2020 bids were delayed and our decisions were delayed by the time we 00:07:25.480 --> 00:07:33.120 got to negotiations with this particular contractor or this supplier he decided 00:07:33.120 --> 00:07:37.760 so much time had expired that he was going to change his price and when he 00:07:37.760 --> 00:07:43.360 changed the price the contract no longer became cost-effective relative to other 00:07:43.360 --> 00:07:48.160 bids we received and we'd already moved moved away from those other bids so 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 00:07:51.360 --> 00:07:53.600 wanted to make sure this wasn't something we were gonna have to go 00:07:53.600 --> 00:08:01.680 through repeatedly thank you okay do we have a motion to approve item a so 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 00:08:11.720 --> 00:08:25.000 aye aye okay motion carries item G is there someone here to speak to item G 00:08:25.000 --> 00:08:35.720 so we should have either pre-tem or Steven on the phone yes go ahead Lee 00:08:35.720 --> 00:08:40.760 madam chairman my reason for requesting pulling this item was so we could get a 00:08:40.760 --> 00:08:46.600 little better explanation of it and the impact it might hold for the future 00:08:46.600 --> 00:08:50.720 since it appears to be a long-term consulting contract for wastewater 00:08:50.720 --> 00:08:53.000 management 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 00:09:07.200 --> 00:09:11.160 a this is Chris Campbell water and wastewater capital project superintendent 00:09:11.160 --> 00:09:15.120 I can answer any questions on this item hey Chris this is Tony if you could 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 00:09:19.800 --> 00:09:25.400 that better Tony yes did you hear the question for mr. Ryback if I do 00:09:25.400 --> 00:09:28.320 understand correctly he was just wanting some more detail because this is going 00:09:28.320 --> 00:09:32.040 to be an extensive contract is that correct yes sir that is correct it 00:09:32.040 --> 00:09:36.320 appears to be a long-term consulting contract and I thought it might be good 00:09:36.320 --> 00:09:40.160 for us to get a little further explanation exposition of it thank you 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 00:09:47.920 --> 00:09:52.800 RFP here recently and scored multiple criteria for the water and wastewater 00:09:52.800 --> 00:09:58.120 group one of the criteria was was for planning and permitting right now the 00:09:58.120 --> 00:10:02.240 current or currently the the water and wastewater group we do have a water 00:10:02.240 --> 00:10:07.560 master plan however we do not have a wastewater master plan so this was this 00:10:07.560 --> 00:10:12.960 was top of our priority list to get this consultant on board to to evaluate 00:10:12.960 --> 00:10:17.360 currently what we're doing within our model and within our basins and then 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 00:10:22.640 --> 00:10:27.760 weight or with wastewater infrastructure so yes this will there is an extensive 00:10:27.760 --> 00:10:32.560 amount of effort that's going to be put forth for surveying and looking at our 00:10:32.560 --> 00:10:38.400 existing system and as well as our basins and then and then they will break 00:10:38.400 --> 00:10:43.480 down each basin and then come together with a holistic plan of how we should 00:10:43.480 --> 00:10:50.240 proceed forward with our wastewater infrastructure alrighty then so this is 00:10:50.240 --> 00:10:55.320 the result of a screening process that has already occurred that is correct yes 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 00:11:01.760 --> 00:11:05.600 Associates have done quite a bit of business with the with the city of 00:11:05.600 --> 00:11:10.160 Denton they've actually just recently helped write our standard standard 00:11:10.160 --> 00:11:14.880 specs for the for the city of Denton as well very well thank you I appreciate 00:11:14.880 --> 00:11:19.360 that I just want to get a better flavor for this particular contract because of 00:11:19.360 --> 00:11:26.880 the time frame and money thank you absolutely anytime okay do we have a 00:11:26.880 --> 00:11:35.960 motion to approve item G okay Lee's motioning second do we have a second 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 00:11:44.320 --> 00:11:52.040 now yes a little bit a little bit okay because the alternative is to move into 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 00:12:04.160 --> 00:12:11.120 okay so we can hear you okay so the next item is items for individual 00:12:11.120 --> 00:12:18.080 consideration item consider the approval of the May 24th 2021 minutes 00:12:18.080 --> 00:12:25.400 were there any changes or corrections okay do we have a motion to approve the 00:12:25.400 --> 00:12:31.760 minutes so moved okay been moved do we have a second Lee's seconds all in 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 00:12:39.000 --> 00:12:41.480 last time 00:12:41.480 --> 00:12:53.320 me too everybody okay so leaving leaving green 00:13:05.080 --> 00:13:12.960 okay okay the next item is item B consider recommending adoption of an 00:13:12.960 --> 00:13:17.080 ordinance for the city of Denton a Texas Home Rule municipal corporation 00:13:17.080 --> 00:13:21.320 authorizing the city manager or their designee to execute a contract with 00:13:21.320 --> 00:13:28.080 Hammett extra excavation incorporated for the construction of the perimeter 00:13:28.080 --> 00:13:32.240 landfill gas header perimeter road and waterline extension for the solid waste 00:13:32.240 --> 00:13:36.080 and recycling department providing for the expenditure funds therefore and 00:13:36.080 --> 00:13:41.000 providing an effective date awarded to hammock excavation Inc and the not to 00:13:41.000 --> 00:13:44.400 exceed amount of three million six forty one nine hundred and forty dollars and 00:13:44.400 --> 00:13:51.840 six cents six cents six cents good morning members of the board my name is 00:13:51.840 --> 00:13:54.920 Brian burner I am the solid waste director for the city of Denton it's 00:13:54.920 --> 00:13:59.920 nice to see everybody in three dimensions for a change so I am here 00:13:59.920 --> 00:14:06.960 today to talk about the project with Hammett to award a contract to extend 00:14:06.960 --> 00:14:14.120 our landfill road perimeter road gas well header and waterline what I do want 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 00:14:24.040 --> 00:14:27.560 the process to identify the contractors and the cost to provide our 00:14:27.560 --> 00:14:31.960 recommendations and then answer any questions that you might have a city of 00:14:31.960 --> 00:14:36.800 Denton landfill in the exist under our existing permit we actually started our 00:14:36.800 --> 00:14:41.640 fill pattern on the south and the west side currently we are now moving into 00:14:41.640 --> 00:14:45.600 the east side and we need to install the infrastructure to support this service so 00:14:45.600 --> 00:14:51.720 again access road on the east side as well as waterline and gas line header to 00:14:51.720 --> 00:14:55.720 manage the landfill gas that that is located or that will be produced in this 00:14:55.720 --> 00:14:59.880 area when we talk about the work to be completed again from landfill gas system 00:14:59.880 --> 00:15:04.680 we're going to stall about 4,600 feet of 18 inch header control and collection 00:15:04.680 --> 00:15:13.280 system a 950 foot leachate force main a non potable effluent waterline to help 00:15:13.280 --> 00:15:19.160 with not only cleaning and watering the roads but also a desk control and then 00:15:19.160 --> 00:15:25.600 again an all-purpose 10 inch reinforced concrete pavement road to make sure that 00:15:25.600 --> 00:15:30.200 we can get in and out of the landfill on the east side we had construction 00:15:30.200 --> 00:15:36.160 specifications prepared by SES consulting engineers that were released 00:15:36.160 --> 00:15:42.120 for review on March 16th of this year we sent the request to 463 companies with 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 00:15:48.200 --> 00:15:51.720 the evaluation the lowest responsive company that was identified was Hammett 00:15:51.720 --> 00:15:56.560 Construction and with the 205 day proposed for construction we do 00:15:56.560 --> 00:16:01.160 recommend awarding the landfill gas header waterline and concrete road 00:16:01.160 --> 00:16:06.960 construction to Hammett Excavation I'd be glad to answer any questions that you 00:16:06.960 --> 00:16:14.840 might have at this time questions yes mr. Rebek go ahead 00:16:15.440 --> 00:16:23.000 Lee go ahead mr. madam chairman my question is regarding the landfill gas 00:16:23.000 --> 00:16:28.600 collection system it's probably a dumb question but I'm gonna ask it anyway so 00:16:28.600 --> 00:16:34.160 what do you do with the methane gas that you collect currently we are flaring 00:16:34.160 --> 00:16:38.840 that gas however as we speak we have at least nine contractors out at the 00:16:38.840 --> 00:16:45.080 landfill who are reviewing the system to install what we call a high BTU plant 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 00:16:49.040 --> 00:16:54.240 pipeline grade quality and put it into the at most landfill or excuse me the 00:16:54.240 --> 00:16:58.560 at most natural gas pipeline that runs along the north end of our property to 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 00:17:04.240 --> 00:17:09.640 beneficial reuse of that material well that is excellent so this is an 00:17:09.640 --> 00:17:14.160 extension to an already existing landfill gas collection system that I 00:17:14.160 --> 00:17:16.600 understand that correctly that is correct we currently have the header 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 00:17:20.840 --> 00:17:25.960 complete the ring by running it along the east side mm-hmm all right well very 00:17:25.960 --> 00:17:30.920 good thank you thank you Karen did you have a question to Lee's question took 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 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 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 00:17:54.080 --> 00:17:59.080 consider recommending the adoption of an ordinance of the city of Denton a Texas 00:17:59.080 --> 00:18:02.520 Home Rule Municipal Corporation authorizing the city manager or their 00:18:02.520 --> 00:18:07.400 designee to execute a contract with Hammett Excavation incorporated for the 00:18:07.400 --> 00:18:10.680 construction of the public disposal facility for the solid waste and 00:18:10.680 --> 00:18:15.040 recycling department providing for the expenditure of funds therefore and 00:18:15.040 --> 00:18:20.600 providing an effective date CSP 7568 awarded to Hammett Excavation 00:18:20.600 --> 00:18:28.520 incorporated in the not to exceed mount of 2 million 526 832 and 34 cents good 00:18:28.520 --> 00:18:31.760 morning again now Brian Bernhardt of solid waste director with city of Denton 00:18:31.760 --> 00:18:37.840 before you this morning to talk about our public disposal facility and award 00:18:37.840 --> 00:18:41.680 of a contract to Hammett construction company again what I want to try to do 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 00:18:46.080 --> 00:18:52.320 again the process to identify the contractor the recommendations for 00:18:52.320 --> 00:18:56.240 approval and answer any questions that you might have city of Dent public 00:18:56.240 --> 00:19:00.560 disposal PDF facility is located on and within the permitted boundaries of the 00:19:00.560 --> 00:19:04.840 city of Denton landfill purpose really is to provide a safe place and 00:19:04.840 --> 00:19:08.320 environment for residents to dispose of materials at the landfill what we try to 00:19:08.320 --> 00:19:12.200 do is it's actually separate from the working face so residents who don't have 00:19:12.200 --> 00:19:17.560 dump trailers don't have the big landfill equipment basically drop it on 00:19:17.560 --> 00:19:22.680 on a concrete pad the materials picked up and actually transferred to the 00:19:22.680 --> 00:19:28.640 working face keeps him separate from the landfill equipment and reason we need 00:19:28.640 --> 00:19:33.620 this facility built is because our current PDF is located within the 00:19:33.620 --> 00:19:37.040 footprint of the next landfill cell which is currently under construction so 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 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 00:19:46.000 --> 00:19:51.200 facility so that it increases our reliability and the safety that's going 00:19:51.200 --> 00:19:56.040 to be concerned with the construction we hope this facility will be complete by 00:19:56.040 --> 00:20:00.320 the end of the year so we can start using it again the work will be 00:20:00.320 --> 00:20:04.440 completed we've got about quarter million square feet in this facility it 00:20:04.440 --> 00:20:10.560 will include earthwork concrete road ramps pads pillars effluent water 00:20:10.560 --> 00:20:14.800 supply line for for water monitors electric litter control fences just 00:20:14.800 --> 00:20:20.120 everything that we need to make sure that this works and does not impact the 00:20:20.120 --> 00:20:24.840 environmental integrity of the facility with the request for proposal we had 00:20:24.840 --> 00:20:29.480 Biggs and Matthews environmental prepare our bid specs and documents it was 00:20:29.480 --> 00:20:36.440 released on March 12th we sent it to 461 companies we had four responses that were 00:20:36.440 --> 00:20:43.560 received on April 22nd of 2021 the results of the proposal evaluation is 00:20:43.560 --> 00:20:47.720 that Hammett again Hammett can excavation had the best overall and 00:20:47.720 --> 00:20:54.080 final offer with a 230 day construction time period we would recommend awarding 00:20:54.080 --> 00:20:58.920 the PDF contract to Hammett ex excavation would be glad to answer any 00:20:58.920 --> 00:21:06.960 questions that you might have regarding this questions yes go ahead Barbara is 00:21:06.960 --> 00:21:12.720 this the company we're working with here or proposing to could you repeat your 00:21:12.720 --> 00:21:20.280 question please no Hammett excavation is actually located in bottom Texas but 00:21:20.280 --> 00:21:23.360 they are the company that's currently doing the landfill cell expansion and 00:21:23.360 --> 00:21:27.320 and this is what they do they are their experts in the installation of these 00:21:27.320 --> 00:21:32.200 types of facilities so we're extremely comfortable in them having and building 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 00:21:36.640 --> 00:21:42.920 synergy with our synergies quick all right other questions go ahead now you 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 00:21:46.920 --> 00:21:50.200 old is the existing facility the existing facility was there for about 00:21:50.200 --> 00:21:53.520 ten years but again it was very rudimentary was basically just a pad 00:21:53.520 --> 00:21:59.240 with some some a frame type concrete barriers you dumped it on the pad they 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 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 00:22:09.320 --> 00:22:14.240 but again cleaner safer for our residents and in you know in the off 00:22:14.240 --> 00:22:19.880 chance that we have an extreme rate event it allows us to really keep that 00:22:19.880 --> 00:22:26.360 the landfill running at that at optimal speed okay okay thank you any other 00:22:26.360 --> 00:22:33.560 questions okay do we have a motion to approve this item go move the moves and 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 00:22:44.280 --> 00:22:49.200 carries thank you thank you very much next item is management reports so thank 00:22:49.200 --> 00:22:53.800 you madam chair and members of the PB in your management the reports this time 00:22:53.800 --> 00:22:58.680 around we did send you a memo on the budget process I think mr. Ryback had 00:22:58.680 --> 00:23:03.400 previously kind of asked for just some detail on that and Cassie Ogden our 00:23:03.400 --> 00:23:08.160 director finances here if if there's any questions regarding the content of that 00:23:08.160 --> 00:23:19.160 memo or just any general questions about the budget process any questions I would 00:23:19.160 --> 00:23:21.840 love to ask some questions but unfortunately I had not yet had a 00:23:21.840 --> 00:23:25.920 chance to read the memo having been out of town over the weekend if you could 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 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 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 00:23:40.120 --> 00:23:44.360 with you individually or have a call with you and and answer any questions so 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 00:23:52.880 --> 00:23:55.520 just gonna say I would appreciate it if we could give me a couple minutes and 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 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 00:24:03.920 --> 00:24:09.720 have is just the calendar for future agenda items we did have an item 00:24:09.720 --> 00:24:14.240 scheduled for for today that was you know slipped back and so that I'll probably 00:24:14.240 --> 00:24:17.920 come back to you on the 28th but I think that generally speaking the budget items 00:24:17.920 --> 00:24:22.360 that are listed on here with the dates are in order and consistent I think with 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 00:24:27.640 --> 00:24:32.160 the the last item that we have for you is just a new business action matrix 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 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 00:24:41.160 --> 00:24:45.640 last time that was added was just a legislative update as you know the 00:24:45.640 --> 00:24:49.520 legislative session has concluded there's a number of bills still kind of 00:24:49.520 --> 00:24:54.200 waiting for the governor to to potentially veto or sign or just let 00:24:54.200 --> 00:25:00.320 pass there's there's also the possibility of a special session that 00:25:00.320 --> 00:25:03.840 might be called by the by the by the governor but we are working with our 00:25:03.840 --> 00:25:09.440 legislative consultants and and do plan to come back to you probably sometime in 00:25:09.440 --> 00:25:16.000 July with with an update of of all all matters related to legislative activity 00:25:16.000 --> 00:25:20.840 impacting any of our utilities so again that that's on the schedule and be happy 00:25:20.840 --> 00:25:25.360 to answer any questions that I mean you ever might have on any of that any 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 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 00:25:37.600 --> 00:25:43.640 questions okay she's coming up to the podium already well I was wondering it 00:25:43.640 --> 00:25:48.880 seems that we use the departments are using baseline budgeting so that means 00:25:48.880 --> 00:25:52.840 last year's budget is always the start of next year's but I understand that 00:25:52.840 --> 00:25:59.320 correctly from the memo yes that is correct okay next item is I was 00:25:59.320 --> 00:26:03.040 wondering does the if we're starting with the baseline each year may I assume 00:26:03.040 --> 00:26:10.000 that budgets never go below the baseline but always above not necessarily if 00:26:10.000 --> 00:26:18.000 there were one-time expenses we do back those out before we roll it forward and 00:26:18.000 --> 00:26:24.280 if we always look at a three-year history of the expenses so if the 00:26:24.280 --> 00:26:29.800 department historically has been spending less than their baseline we 00:26:29.800 --> 00:26:34.920 will work with them and they could possibly reduce their budget their new 00:26:34.920 --> 00:26:43.080 baseline okay so the baseline is in the hard bottom it's still flexible enough 00:26:43.080 --> 00:26:49.680 based on actual expenditures possibly one time and also ongoing correct okay 00:26:49.680 --> 00:26:54.480 the other item I noticed is that there is a quarterly review by the budget 00:26:54.480 --> 00:27:02.600 manager yes the quarterly review takes place before our quarterly report is 00:27:02.600 --> 00:27:08.280 published and so we do provide that quarterly report to PB and council but 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 00:27:14.280 --> 00:27:22.240 think we were forecasting and do kind of a deeper dive of the budgets very good 00:27:22.240 --> 00:27:26.900 this quarterly budget report is that something that we typically see as a 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 00:27:35.200 --> 00:27:39.400 very much those are my questions and madam chairman I appreciate you giving me 00:27:39.400 --> 00:27:43.920 a little flexibility here and mr. Ryback those quarterly reports are also on the 00:27:43.920 --> 00:27:47.880 city's website under under the finance department and there's a history there 00:27:47.880 --> 00:27:54.560 of those reports along with annual financial reports as well okay well very 00:27:54.560 --> 00:28:01.680 good thank you okay the next item is concluding items does any board member 00:28:01.680 --> 00:28:06.400 have any items they'd like added to a future agenda or any congratulations or 00:28:06.400 --> 00:28:14.680 whatever no okay and we will move into our work session receive a report and 00:28:14.680 --> 00:28:18.480 hold a discussion and give staff direction regarding a proposed high 00:28:18.480 --> 00:28:22.520 performance computing operation on leased property at the Denton Energy 00:28:22.520 --> 00:28:27.000 Center under development by Tanasca 00:28:27.000 --> 00:28:34.800 well good morning pub members it was actually 2017 I was thinking when the 00:28:34.800 --> 00:28:39.160 last time that I presented to pub was so I believe miss Parker you were here 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 00:28:43.080 --> 00:28:46.160 Jessica Rogers I'm the director of economic development for the city of 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 00:28:50.900 --> 00:28:55.840 the past but I'm going to be leading the presentation today of course Terry 00:28:55.840 --> 00:29:00.440 Nolte is here with DME and as well as we have representatives from Tanasca on the 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 00:29:04.560 --> 00:29:14.440 have a lot of help so let me sort through these thing go 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 00:29:28.360 --> 00:29:33.640 a modular data mining prospect and so this project came to us through Tanasca 00:29:33.640 --> 00:29:37.900 Tanasca is a large private energy company that specializes in power plant 00:29:37.900 --> 00:29:44.080 development natural gas and electric power marketing and a number of things 00:29:44.080 --> 00:29:49.420 so DME and economic development have been working with Tanasca with a 00:29:49.420 --> 00:29:53.840 specific data center client on the development of a high density computing 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 00:29:57.720 --> 00:30:02.200 slides this project is going to be unique because it has an extraordinarily 00:30:02.200 --> 00:30:06.920 high electric demand and to sort of put that in perspective is this specific 00:30:06.920 --> 00:30:11.840 projects demand is going to be larger than the entire city of Denton demand at 00:30:11.840 --> 00:30:16.080 build out and this project is also unique because they're looking to 00:30:16.080 --> 00:30:20.440 construct this project at the Denton Energy Center and that's because that 00:30:20.440 --> 00:30:25.180 site has adequate transmission and substation capacity really with minimal 00:30:25.180 --> 00:30:29.160 build out for this particular project so it's really a unique project and Denton 00:30:29.160 --> 00:30:32.080 has a unique location that can meet their needs and we're gonna go through 00:30:32.080 --> 00:30:37.320 all of sort of the details of the introductory comments over the next few 00:30:37.320 --> 00:30:43.520 slides so what does this look like in terms of a project so the modular data 00:30:43.520 --> 00:30:47.600 mining campus where they're going to be performing those high density and high 00:30:47.600 --> 00:30:51.920 performance competing applications really looks exactly exactly like a 00:30:51.920 --> 00:30:56.280 modular data mining campus would look like in your mind they're sort of the 00:30:56.280 --> 00:31:01.080 size of a semi truck sort of can shipping container and they'd be located 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 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 00:31:11.160 --> 00:31:14.880 like me who are directionally challenged and then this is what it would look like 00:31:14.880 --> 00:31:18.200 on the ground here and this is where they would perform things like 00:31:18.200 --> 00:31:23.040 cryptocurrency mining doing competing operations for artificial intelligence 00:31:23.040 --> 00:31:28.440 DNA mapping and machine learning and those sorts of things so here's a good 00:31:28.440 --> 00:31:33.360 aerial of the deck site so here's the Denton Energy Center the Jim Crystal 00:31:33.360 --> 00:31:38.280 substation so this project is being proposed to be developed in three phases 00:31:38.280 --> 00:31:43.280 so phase one is the south side of the Denton Energy Center phases one and two 00:31:43.280 --> 00:31:48.320 which is about 19 acres and the goal would be to have that operation up and 00:31:48.320 --> 00:31:53.160 running September to November this year in phases one and two and then phase 00:31:53.160 --> 00:31:57.320 three is 11 acres on the north side of the Denton Energy Center with target 00:31:57.320 --> 00:32:03.440 operation date of March 2022 no surprise but electric will be supplied from the 00:32:03.440 --> 00:32:08.480 Jim Crystal substation and because of the extraordinarily high demand of the 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 00:32:12.560 --> 00:32:16.560 negotiating an economic development incentive but we are looking at a 00:32:16.560 --> 00:32:20.440 purchase power agreement and that's sort of again extraordinarily unique 00:32:20.440 --> 00:32:24.360 situation where we have such a high demand and high user that we'd be 00:32:24.360 --> 00:32:28.760 looking at a purchase power agreement they'll the company will also be leasing 00:32:28.760 --> 00:32:34.280 the land from the city of Denton and that will be market-based a market-based 00:32:34.280 --> 00:32:39.920 lease rate so the property because the city owns it is currently zoned public 00:32:39.920 --> 00:32:44.360 facility so we do have to initiate a rezoning process to allow for a private 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 00:32:49.200 --> 00:32:53.320 meeting is upcoming later this month we'll be rezoning that those sections of 00:32:53.320 --> 00:32:58.920 the property from public facility to light industrial to allow for this use 00:32:58.920 --> 00:33:04.320 so speaking to why this particular project is pursued here in Denton and 00:33:04.320 --> 00:33:09.040 sort of a quick list of what did the customer need they needed transmission 00:33:09.040 --> 00:33:14.280 level voltage they needed really high reliability but able to contain curtail it 00:33:14.280 --> 00:33:18.800 when the system conditions called for it they needed rates pursuant to a PPA 00:33:18.800 --> 00:33:24.920 access to the workforce to operate the computing center and one thing that's 00:33:24.920 --> 00:33:28.640 really particular to Denton is access to renewable energy was extraordinarily 00:33:28.640 --> 00:33:32.120 important for this client and they wanted to be somewhere where they had a 00:33:32.120 --> 00:33:36.320 good community and environmental partner for their goals and of course there on 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 00:33:40.160 --> 00:33:44.880 the expectations of this client so this really was a great partnership and a way 00:33:44.880 --> 00:33:49.880 to utilize property at the Denton Energy Center and that has a lot of benefits 00:33:49.880 --> 00:33:55.560 for both the company and the city so getting into direct benefits for the 00:33:55.560 --> 00:33:59.480 city of Denton so this particular project is in alignment with our economic 00:33:59.480 --> 00:34:03.720 development strategic plan this board I don't know how involved you were in that 00:34:03.720 --> 00:34:07.360 process throughout the pandemic but we just finished our economic development 00:34:07.360 --> 00:34:11.880 strategic plan it was adopted in February of this year and in that plan 00:34:11.880 --> 00:34:16.040 it specifically calls out strategic growth areas and identifies what we 00:34:16.040 --> 00:34:21.280 would consider high value development areas data centers like this operation 00:34:21.280 --> 00:34:24.720 were one of the few industries that were specifically called out as having 00:34:24.720 --> 00:34:29.000 extreme benefit here in the city of Denton in terms of our economic value a 00:34:29.000 --> 00:34:34.120 lot of that has to do with having our own electric utility so we certainly are 00:34:34.120 --> 00:34:40.200 pursuing data centers as an economic development strategy the second point 00:34:40.200 --> 00:34:43.280 would be that the full build out of the project so all three phases it would 00:34:43.280 --> 00:34:46.720 more than double all of DME is current retail energy sales and create 00:34:46.720 --> 00:34:52.200 additional revenues for our general fund in terms of franchise 00:34:52.200 --> 00:34:58.560 fees ROI energy sales revenues on sales taxes as well as property taxes 00:34:58.560 --> 00:35:04.320 related to the business personal property of the client and then lastly 00:35:04.320 --> 00:35:09.760 this does have the potential to increase DME system load profile by reduce doing 00:35:09.760 --> 00:35:15.840 that could reduce costs to serve the existing customers so we always like to 00:35:15.840 --> 00:35:19.640 examine what are the risks and the rewards of any project as no project is 00:35:19.640 --> 00:35:24.560 without a risk right so we looked at the commercial risks of the project so for 00:35:24.560 --> 00:35:28.360 this particular project of course it's such a large-scale project that the 00:35:28.360 --> 00:35:33.200 customers credit is something that we look into so we will work to mitigate 00:35:33.200 --> 00:35:37.840 that through the actual purchase power agreement we also looked at what's the 00:35:37.840 --> 00:35:43.640 lifecycle of the business plan how long can this modular operation continue and 00:35:43.640 --> 00:35:47.320 what happens when it's over and so in our discussions and research really 00:35:47.320 --> 00:35:51.520 knowing that there are other potential computing operations going forward to 00:35:51.520 --> 00:35:55.720 expect coming online in the future and so we certainly can continue to explore 00:35:55.720 --> 00:35:58.640 what those opportunities are as we're going through the first few years of 00:35:58.640 --> 00:36:03.040 this operation and lastly is that this does consume a significant portion of 00:36:03.040 --> 00:36:07.640 available transmission capacity in our industrial area that's not a huge risk 00:36:07.640 --> 00:36:12.160 all that means is that if someone needed the power kind of soon thereafter we 00:36:12.160 --> 00:36:15.240 might have to go through a little bit of a longer process to get the 00:36:15.240 --> 00:36:19.720 infrastructure there to serve them it's not a huge delay not a significance 00:36:19.720 --> 00:36:23.880 concern for our staff but something that we want to acknowledge in terms of 00:36:23.880 --> 00:36:28.040 benefits to the city again significant revenues increasing based on the sales 00:36:28.040 --> 00:36:34.880 of the energy seeing some general fund relief which is always positive and then 00:36:34.880 --> 00:36:40.440 some electric rate relief possible and then lastly is again a little bit on our 00:36:40.440 --> 00:36:46.240 economic development strategic plan but a possible funding source for what we're 00:36:46.240 --> 00:36:49.280 calling our economic development catalyst fund so this is the fund with 00:36:49.280 --> 00:36:54.520 which we would fund economic development programming and then lastly that this 00:36:54.520 --> 00:36:59.760 does utilize right now that we have transmission capacity surplus so this is 00:36:59.760 --> 00:37:07.440 able to take advantage of our current situation so jumping into timeline and 00:37:07.440 --> 00:37:11.840 that's next step so this project because it's a modular installation is going to 00:37:11.840 --> 00:37:16.600 really have an aggressive timeline and in terms of how quickly it can be 00:37:16.600 --> 00:37:21.360 installed so we're gonna start there we've started the rezoning process it 00:37:21.360 --> 00:37:26.320 goes to public hearing at the Planning and Zoning Commission on June 23rd and 00:37:26.320 --> 00:37:31.720 that's to rezone the property again to light industrial as soon as the zoning 00:37:31.720 --> 00:37:35.760 is in place then we can begin permitting the project and they can move really 00:37:35.760 --> 00:37:42.760 quickly the project will come back to pub and to City Council in terms of both 00:37:42.760 --> 00:37:47.200 the PPA and the reason sorry PPA will come back to pub and council the 00:37:47.200 --> 00:37:51.600 rezoning process will go through City Council but the real goal is to get this 00:37:51.600 --> 00:38:00.280 project online really late fall 2021 as soon as we possibly can so continuing on 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 00:38:05.200 --> 00:38:09.120 the rezoning process but two working on negotiating that comprehensive purchase 00:38:09.120 --> 00:38:13.020 power agreement and that's going to include what the costs of the power are 00:38:13.020 --> 00:38:18.080 the terms of the lease any type of that credit credit or collateral requirement 00:38:18.080 --> 00:38:23.520 and then also getting the final details about the interconnection and any type 00:38:23.520 --> 00:38:27.320 of operational requirements that would be needed to operate that facility and 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 00:38:31.520 --> 00:38:36.360 in your rate structure this project is so large it would not qualify for that 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 00:38:43.280 --> 00:38:49.000 we're seeking is to provide 120 day exclusivity exclusivity period on the 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 00:38:52.920 --> 00:38:59.720 project and then move the PPA through its approval processes and so with that I 00:38:59.720 --> 00:39:04.360 will stop talking and I'm sure there are lots of questions on this project but 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 00:39:10.460 --> 00:39:16.440 questions and madam chair and PB members we also have a couple of folks with the 00:39:16.440 --> 00:39:20.020 company too so if there are questions for them they'll be happy to answer any 00:39:20.020 --> 00:39:26.400 questions you might have okay all right questions all right we'll start with 00:39:26.400 --> 00:39:39.080 Karen sorry Ben I was curious about what since this is placing such a high demand 00:39:39.080 --> 00:39:43.880 on our electric generation or electric transmission I guess what will happen 00:39:43.880 --> 00:39:49.480 when there's another tropical storm or winter storm URI and we need that 00:39:49.480 --> 00:40:01.800 electricity for the ratepayers of denton come on come on down Terry Nolte 00:40:01.800 --> 00:40:06.400 assistant general manager DME again the way that this transaction is being 00:40:06.400 --> 00:40:12.040 structured this is a fully interruptible load so we would have the ability to 00:40:12.040 --> 00:40:17.280 interrupt this load for a number of for any reason and certainly if we had a 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 00:40:23.360 --> 00:40:26.480 know that the target distribution center has its own generators that can kind of 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 00:40:31.680 --> 00:40:38.400 able to generate any of their own there are they are not planning to generate 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 00:40:44.280 --> 00:40:50.200 size would be they'd be a small utility right effectively so they're relying on 00:40:50.200 --> 00:40:55.400 that intermittency I'm sorry the interrupt ability in order to make the 00:40:55.400 --> 00:41:01.160 economics work effectively I did also just want to commend utility staff in 00:41:01.160 --> 00:41:04.920 general for your willingness and eagerness to think outside the box 00:41:04.920 --> 00:41:09.560 because this is a very creative seems like a very creative project that not 00:41:09.560 --> 00:41:14.200 everybody would have would have considered so I'll just give some accolades 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 00:41:18.840 --> 00:41:28.280 business in Texas and so the innovation is really theirs well yours too so thank 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 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 00:41:39.440 --> 00:41:46.360 it in the future or otherwise my understanding and I was not here at the 00:41:46.360 --> 00:41:49.760 time that the deck property was Tony might be able to answer the question 00:41:49.760 --> 00:41:54.160 better but you know typically when you build a power plant you want to have a 00:41:54.160 --> 00:41:59.760 buffer area around it in order to control access and and as with other 00:41:59.760 --> 00:42:04.280 property purchases that the city does for utilities you kind of have to buy 00:42:04.280 --> 00:42:10.160 what the parcel is so the acreage is really determined by what what the 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 00:42:17.000 --> 00:42:23.880 nothing on that particular land deal but I will tell you that even then and now 00:42:23.880 --> 00:42:30.520 there is the potential future use of that property for a service center annex 00:42:30.520 --> 00:42:36.560 for the city as you know especially with hunter coal ranch coming in you know the 00:42:36.560 --> 00:42:41.680 the likelihood that we're gonna be able to serve much of that you know southwest 00:42:41.680 --> 00:42:45.920 kind of side of the community becomes a real challenge out of our current 00:42:45.920 --> 00:42:49.680 campuses and the current service center over here at Texas Street and so that's 00:42:49.680 --> 00:42:53.920 something we that we've been working on obviously if if this project comes into 00:42:53.920 --> 00:42:58.480 play we'll need to kind of reevaluate that but I think the I think the 00:42:58.480 --> 00:43:04.040 benefits of this project certainly outweigh the potential drawbacks and 00:43:04.040 --> 00:43:09.340 those having to rethink kind of a service center annex property so is is 00:43:09.340 --> 00:43:16.520 to ask a recording in progress are they effectively going to use all remaining 00:43:16.520 --> 00:43:22.080 available land or like could we continue like do that service center annex as 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 00:43:28.460 --> 00:43:31.320 of the projects that will be coming through there will be the loot 288 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 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 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 00:43:46.200 --> 00:43:48.600 annex than what we've been talking about but that's something that we'll be 00:43:48.600 --> 00:43:52.120 working through with the with the architects on that so yeah much of much 00:43:52.120 --> 00:43:57.920 of the land at the deck is actually impeded by easements for the gas lines 00:43:57.920 --> 00:44:03.840 and the transmission lines out there so really this these two areas are areas 00:44:03.840 --> 00:44:10.400 that could be developed and you know just an innovative use of property okay 00:44:10.400 --> 00:44:17.880 thank you okay Lee did you have questions Lee can you hear me yes ma'am 00:44:17.880 --> 00:44:23.400 chairman I can't hear you my question is has to do with the 00:44:23.400 --> 00:44:29.120 interrupt ability of power that's very unusual for a data center operation a 00:44:29.120 --> 00:44:33.400 little unclear about it and I've had a little trouble hearing from the meeting 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 00:44:37.800 --> 00:44:42.440 could you tell us a little bit more either Terry or the folks from to ask 00:44:42.440 --> 00:44:49.000 about the interrupt ability of power in this data center operation I think I'll 00:44:49.000 --> 00:44:55.640 defer to mr. Hemshot with with to ask on that one 00:44:55.640 --> 00:45:00.120 hey good morning how's my volume can everybody hear me okay 00:45:00.120 --> 00:45:06.240 yeah wow real good okay thanks good morning thank you very much for for the 00:45:06.240 --> 00:45:11.200 for taking the time and answering for asking these questions I also want to 00:45:11.200 --> 00:45:15.920 compliment the you know the city Terry staff everyone has been just excellent 00:45:15.920 --> 00:45:21.760 responsive and Terry very innovative as well the city has been just just just a 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 00:45:27.680 --> 00:45:31.540 question on the ability yes this is different this this is called 00:45:31.540 --> 00:45:37.120 effectively tier zero data center tier four would be think of all the 00:45:37.120 --> 00:45:41.480 applications on the internet where response time is in milliseconds to a 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 00:45:46.280 --> 00:45:52.040 redundancies in order to actually fill that to fill that need those layers of 00:45:52.040 --> 00:45:56.000 redundancies are you know important in that application but they do layer on a 00:45:56.000 --> 00:45:59.920 lot of inefficiencies such that you know they have to have multiple backup 00:45:59.920 --> 00:46:03.200 systems they have to have multiple cooling systems multiple of everything 00:46:03.200 --> 00:46:08.040 to have that redundancy in this example because these applications are more 00:46:08.040 --> 00:46:12.900 computing process intensive where they occur over a period of time and they can 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 00:46:16.600 --> 00:46:19.600 know initial classes that I had in computer science where you're actually 00:46:19.600 --> 00:46:24.800 scheduling time on a given piece of computing equipment you know back way 00:46:24.800 --> 00:46:29.720 back when it's a similar thing in this case here where they're scheduling over 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 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 00:46:42.960 --> 00:46:49.360 being used in your modular systems are either scheduled or are they like flow 00:46:49.360 --> 00:46:57.440 through historical data gathering from different organizations? I'm sorry the 00:46:57.440 --> 00:47:03.820 interrupt ability when it occurs or I'm sorry that's okay we have structured the 00:47:03.820 --> 00:47:09.280 question a little awkwardly what I've asked of asking is first to clarify that 00:47:09.280 --> 00:47:14.240 you're talking about the time in your modular systems is actually mostly 00:47:14.240 --> 00:47:20.840 scheduled rather than flow through and if it is flow through is it just staging 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 00:47:27.480 --> 00:47:31.640 activity will be on mining which is flow through or just a continuous process and 00:47:31.640 --> 00:47:35.480 that process can be interrupted virtually at any point in time. Oh the 00:47:35.480 --> 00:47:40.440 data mining I got you thank you. Right in terms of the any of the artificial 00:47:40.440 --> 00:47:43.440 intelligence video rendering applications like that those are more 00:47:43.440 --> 00:47:48.320 scheduled applications. Okay thank you that makes a little more clear I 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 00:47:55.840 --> 00:48:00.440 going to say that the presentation answered a lot of questions and I 00:48:00.440 --> 00:48:08.360 appreciate the information that was presented to us thank you very much. Okay 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 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 00:48:19.380 --> 00:48:24.480 looking for is some kind of consensus direction? We're looking for 00:48:24.480 --> 00:48:28.920 recommendation from this board to council which will be discussing tomorrow 00:48:28.920 --> 00:48:35.520 on the 120 day exclusivity period for continuing negotiations. Before I forget 00:48:35.520 --> 00:48:40.920 I do have one question we have no issues with our bonds on this arrangement. No 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 00:48:45.440 --> 00:48:51.120 proceed with with the project. Okay excellent thank you. All right so do we 00:48:51.120 --> 00:48:56.560 have a consensus to move forward to recommend moving forward with this 00:48:56.560 --> 00:49:06.400 project? Sure. Okay yes all right is that what you need? Okay all right our final 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 00:49:10.240 --> 00:49:14.320 entire thing and it's a long e but it will take us approximately five minutes 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 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 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 00:49:29.040 --> 00:49:33.160 easier for us to hear everyone. But here is what the closed meeting is about 00:49:33.160 --> 00:49:37.560 deliberations regarding certain public power utilities competitive matters 00:49:37.560 --> 00:49:42.160 under Texas Government Code section five five one point zero eight six 00:49:42.160 --> 00:49:46.560 consultation with attorneys under Texas Government Code section five five one 00:49:46.560 --> 00:49:51.840 point zero seven one receive a presentation from staff regarding 00:49:51.840 --> 00:49:55.960 public power competitive and financial matters regarding the provision of 00:49:55.960 --> 00:50:00.320 electric power to a perspective large electric demand customer discuss 00:50:00.320 --> 00:50:04.920 deliberate and provide direction to staff regarding the same consultation 00:50:04.920 --> 00:50:09.480 with city's attorneys regarding the legal issues associated with the matter 00:50:09.480 --> 00:50:13.560 where the public discussion of these legal matters would conflict with the 00:50:13.560 --> 00:50:17.400 duty of the city attorneys to the city of Denton and the Denton City Council 00:50:17.400 --> 00:50:21.680 under Texas disciplinary rules of the professional conduct at the state bar of 00:50:21.680 --> 00:50:30.280 Texas or would jeopardize the city's legal position in any administrative 00:50:30.280 --> 00:50:34.680 proceeding or potential litigation any final action decision or vote on the 00:50:34.680 --> 00:50:38.720 matter deliberated in the closed meeting will only be taken in an open meeting 00:50:38.720 --> 00:50:42.720 that is held in compliance with Texas Government Code chapter five five one 00:50:42.720 --> 00:50:47.320 except to the extent such final action decision or vote is taken in the closed 00:50:47.320 --> 00:50:51.520 meeting in accordance with the provisions of section five five one point zero eight 00:50:51.520 --> 00:50:56.720 six of the Texas Governmental Code the public power exception the public 00:50:56.720 --> 00:51:00.760 utilities board serves reserves the right to adjourn into a closed meeting or 00:51:00.760 --> 00:51:05.400 executive session as authorized by Texas Government Code section five five one 00:51:05.400 --> 00:51:12.560 point zero zero one the Texas Open Meetings Act on any item on its open 00:51:12.560 --> 00:51:16.560 meeting agenda or to reconvene in the continuation of the closed meeting on the 00:51:16.560 --> 00:51:20.520 closed meeting items noted above in accordance with the Texas Open Meetings 00:51:20.520 --> 00:51:25.280 Act including without limitation section five five one point zero seven one through 00:51:25.280 --> 00:51:32.800 five five one point zero eight six of the Texas Open Meetings Act thanks 00:51:32.800 --> 00:51:38.720 Catherine going into closed session thank you