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All right good morning I'm Marty Rivers chairman of the

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Economic Development

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Partnership Board. We do have a quorum and I will now call

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the work session to

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order at 1102 a.m. our first order of business we're going

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to go a little bit

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out of order. We have George Morrow here from the who's a

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general manager of DME

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and we're gonna go ahead and skip to item EDP 18-032 to

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have a report

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and discussion regarding the Denton renewable resource plan

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and the Denton

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Energy Center so welcome George. Thank you Mr. Chairman and

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thank you for letting

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us move up in the agenda today so I'm gonna get Chris back

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to work. Chris

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Lutrix here he's our Denton Energy Center project manager

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and he provided a few

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slides for my presentation so I thought why don't we just

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get Chris to come by

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and and say a few words to you. Why do I have this up here?

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Let's take this off.

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Technical difficulties guys you ever had those before?

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Never. Councilmember?

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Yeah last night the projector was not working so we're

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already ahead of the

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game today. We have the projector working. I'm gonna go to

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your your desk.

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You have my presentation on here right? I do. And it will

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be down here.

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You have a lot of presentations here.

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That saves me from having to go into this thing down here.

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So two big initiatives we have going on in the city Denton

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Energy Center I

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mentioned that and I mentioned Chris also our renewable

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energy plan so I

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wanted to touch base on those two topics knowing you're

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interested in what's

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going on in the community. Okay everybody know about DME?

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Probably more than I do.

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Thank you. So I've been general manager here since late

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November. It's been quite

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an interesting process learning about the community. I grew

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up in West Texas. I

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spent about 25 years in El Paso, picked up a couple of

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degrees and then

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moved around a little bit. I grew up as a military brat so

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I kind of got used to

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packing and moving and cleaning and unpacking and all that

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type of stuff so

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I've been in the electric utility business as of next week

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will be exactly

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40 years. I've been running municipal electric utilities

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for 24 years and it's

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been a great time and a great career for me and started

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coming out to this area

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to visit my mom. My mom was and sister moved out from

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Southern California to

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McKinney and I came out to visit help her with her medical

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things. I'd come out

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take her to some appointments and visit and I said you know

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what this is a

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beautiful beautiful area out here in North Texas. So I

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ended up wanting to

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ended up buying a house. I said I'm gonna come here someday

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and live and lo and

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behold Denton was looking for a general manager. I saw the

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advertisement in our

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industry publication and threw my hat in the ring and voila

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here I am and again

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I'm tickled to death to be here. There's lots of good

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things going on so there

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hasn't been a too much of a sleepy period for me so far. So

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we started

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service at DME in 1905. We've got 53,000 electric customers

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, pretty large service

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area about a hundred square miles, lots of transmission

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lines and sub stations

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to serve our customers as efficiently as possible including

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new economic

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development. I think that's one of one of DME strengths. So

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the big project before

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us, largest capital project I think in Denton's history is

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the Denton Energy

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Center. Here's a little overhead view of the project and

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Chris I want to take

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your excitement. Yeah so we'll start off here with a

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picture. This facility is

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located west of the Dent Regional Airport just south of Jim

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Crystal Road. It sits

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about a half a mile off the road and here's a drone footage

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from the

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City of Denton's IT department. So we took it out to try to

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see what this thing

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looks like from from an aerial view. So to kind of see my

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mouse here so as you

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see back here is the the new Jim Crystal substation. That's

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a very modern

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substation and that's the the power plant's connection to

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the Ercock grid. So

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pretty hard to see but in the background you'll see some

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some high voltage power

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lines running out here. That's the connection point to the

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Ercock grid and

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as far as the layout of the plant goes it's symmetrical.

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The center of the plan

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is called the core. That's where the control room is, some

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maintenance rooms,

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some the electrical components of the plant are or in the

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center and then

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there's two engine halls, a south hall and a north hall.

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Each has six engines in it

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and then towards the the back of the plant the emissions

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control systems

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come first, the stacks. These things are basically a very

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large engine, gas engine

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so they have radiators and they also have mufflers so

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inside of this white

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shrouded area are actually the mufflers. At this scope they

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're called silencers

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and then the plant on the backside here is a radiator. So

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he uses a closed loop

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cooling system which means that much similar to your

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automobile you put water

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in it it's circulated through to cold the engines out

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through the radiator and

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the benefit of this is this plant uses very little water so

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once you get the

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system filled up its makeup water is about 10 to 20 gallons

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a week so it's

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very water conscious. So just some some facts about the

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Denton Energy Center as

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George stated it's the city's largest capital improvement

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project.

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Construction commenced in October 2016 and it took us about

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18 months to get

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to get everything done. Yes sir. Your name again is? Chris

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Lutrik. How do you

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spell that? L-U-T-R-I-C-K. Okay Chris so when you say it's

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the city's largest

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capital improvement how much are we talking about? 225

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million dollars. Thank

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you. Yes sir and just feel free to stop me if you have any

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questions. So

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construction so we broke ground on October of 2016 as I

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said it took about

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18 months to where we are now the plan is is operational we

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're in the testing

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phase we have some site cleanup to totally make the project

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finished and we

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expect to have that done by the by the end of June. The

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plan is powered by 12

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Wardzilla natural gas engines and the plant can deliver up

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to 220 megawatts of

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power so that's ERCOT's rating the actual theoretical

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output of the plan

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is 225 megawatts but the plants load is about 5 megawatts

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so therefore ERCOT

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deducts that off. What's the city's total load? Our peak

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load max I believe is 355 megawatts so for instance I

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looked yesterday yesterday was a pretty warm day in the

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afternoon the city's

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load was about 240 megawatts so and that'll grow over the

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summer with the

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peak coming in August early August is when the city of

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Dayton generally sees

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its peak load but but a key thing about the plan and this

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type of plant is

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you'll notice that in five minutes the plant can deliver

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its full output so

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that is that is not something that that every power plant

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has coal may take days

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to ramp up so they're not using this kind of thing and your

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combined cycle

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plants which use the heat they generate in making

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electricity they take some

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time to get up to speed as well so this plants ability to

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say ERCOT calls and

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says hey we need some power need a hundred megawatts we

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need it in five

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minutes this this plant can do that so it has those

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capabilities so that fact

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coupled or that fact that quick start fact and the ability

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that it's very low

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emissions make the plant suitable to be a financial backup

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to Denton's desire or

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Denton's goal to become a hundred percent renewable so I

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don't want to

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steal any George's thunder but that's that's what he's

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going to talk about but

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that's the physical capabilities of the plant to help

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support that and and

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finally should say that the plant will enter commercial

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operation it shouldn't

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say on July 1st it should say by July 1st so we're kind of

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in our middle

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stages of commissioning we'll get that done we'll get all

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of our documentation

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filed and at that point we'll submit that and then

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commercially be online so

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a couple more pictures for you hopefully you know we'll

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have tours tours will

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come along and everybody can see these here's an actual

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picture of the engine

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hall so what you're seeing here is the world's largest gas

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engine so there are

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18 cylinders they're set up in a V configuration the pist

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ons are about 20

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inches in diameter but basically it's just it's just a big

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a big cruise ship

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engine is one way to look at it and finally I threw this

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picture in there

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just because it has some artistic qualities that I think it

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looks pretty

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good so this is this is what it looks like from the ground

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so any questions

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so upon my arrival in Denton I feel like my role was to see

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this through

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construction we were you know well through the project at

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the time I showed

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up and my role and DME's role going forward is to get the

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most value out of

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this investment so I I'm looking at it from that standpoint

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and that's what our

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intention is we believe that's important now we have a

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number of other resources

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that we provide the load here we have a 30 megawatt around-

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the-clock power

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supply from next era energy resources that has a nexus to

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the wolf ridge wind

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farm though you know we it's not as the wind comes out of

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the plant you know

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next era sort of manages the variability of the wind and

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they give us a flat

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around-the-clock project we paid extra for that back when

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this was contracted

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for in 2009 but the nexus is we received the power at the

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substation right there

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next to the wood next to the farm and the farm came in

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service just when our

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contract started so there's a relationship but it's not a

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pure not a

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pure wind product shows you a couple of photos I snapped

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off of our wall to give

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some graphics something interesting to look at we also have

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a landfill project

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here in Denton out at the landfill site it's about a megaw

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att so pretty

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significant size project that takes no gases from the

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landfill and gathers

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those and puts them through to generate electricity so

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instead of like flaring

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gases or just letting go up in the atmosphere we're

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capturing that that gas

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cleaning it up and putting it through this plant it's

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actually owned by a

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private company a subsidiary I believe of Detroit Edison

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and we contract for

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the energy to make that project happen here locally and it

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has some good

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environmental benefits as I mentioned I'm excited about

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this project came in

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service last month called the Santa Rita wind farm out

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there in West Texas I was

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looking for a graphic there I didn't really have much

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except this is the

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layout of all these wind turbines there's there's a bunch

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00:13:13,000 --> 00:13:14,120
of turbines out

269
00:13:14,120 --> 00:13:17,200
there adding up to there a megawatt and a half so it's

270
00:13:17,200 --> 00:13:18,480
about a hundred wind

271
00:13:18,480 --> 00:13:20,809
turbines equaling this hundred and fifty megawatts so it's

272
00:13:20,809 --> 00:13:21,799
a large power supply

273
00:13:21,799 --> 00:13:25,940
to us it will be the lowest cost energy product that we

274
00:13:25,940 --> 00:13:27,080
have in our portfolio

275
00:13:27,080 --> 00:13:31,500
and it will generate a lot of electricity going forward and

276
00:13:31,500 --> 00:13:32,080
it's going

277
00:13:32,080 --> 00:13:36,200
to be good for George we have a question absolutely

278
00:13:38,200 --> 00:13:42,480
yes I know that in our in our conversations on committee on

279
00:13:42,480 --> 00:13:42,639
the

280
00:13:42,639 --> 00:13:47,360
environment and also on council we are actually producing a

281
00:13:47,360 --> 00:13:48,720
lot more gas than

282
00:13:48,720 --> 00:13:53,360
we're able to convert and we had talked about maybe adding

283
00:13:53,360 --> 00:13:54,240
more of these

284
00:13:54,240 --> 00:13:58,899
generators is that still a conversation that that we're

285
00:13:58,899 --> 00:14:00,559
having or it's not been

286
00:14:00,559 --> 00:14:03,850
one that I've been involved in I'll keep my ears open and

287
00:14:03,850 --> 00:14:04,639
see if there's an

288
00:14:04,639 --> 00:14:08,740
opportunity to do that the energy is relatively expensive

289
00:14:08,740 --> 00:14:09,320
here this would be

290
00:14:09,320 --> 00:14:15,480
our most expensive energy product and and that was you know

291
00:14:15,480 --> 00:14:17,039
probably fair

292
00:14:17,039 --> 00:14:20,720
price back when this came online but maybe the next

293
00:14:20,720 --> 00:14:22,519
generation of landfill

294
00:14:22,519 --> 00:14:25,539
gas conversion projects could be a little bit cheaper and I

295
00:14:25,539 --> 00:14:26,360
think we'll look

296
00:14:26,360 --> 00:14:32,909
at that if that's the case so thank you so that's the wind

297
00:14:32,909 --> 00:14:34,679
farm and as Chris

298
00:14:34,679 --> 00:14:38,519
mentioned I'm really pleased to be part of the

299
00:14:38,519 --> 00:14:40,240
implementation of the Denton

300
00:14:40,240 --> 00:14:43,850
renewable resource plan which was adopted by City Council

301
00:14:43,850 --> 00:14:44,879
in February and

302
00:14:44,879 --> 00:14:48,360
provides that we'll be a hundred percent renewable by 2020

303
00:14:48,360 --> 00:14:49,480
and what that means is

304
00:14:49,480 --> 00:14:52,559
if we look at the total electric requirements of our

305
00:14:52,559 --> 00:14:53,759
customer base for a

306
00:14:53,759 --> 00:14:57,120
given year that we'll have at least that much renewable

307
00:14:57,120 --> 00:14:58,600
energy in our portfolio

308
00:14:58,600 --> 00:15:03,659
that's about 1.5 million megawatt hours and that's what we

309
00:15:03,659 --> 00:15:05,000
're looking to bring

310
00:15:05,000 --> 00:15:10,570
online right now we're in the 60 to 65 percent range and we

311
00:15:10,570 --> 00:15:12,080
're we have plans to

312
00:15:12,080 --> 00:15:14,860
get that to the hundred percent by by 2020 or as close

313
00:15:14,860 --> 00:15:16,000
thereafter as possible

314
00:15:16,000 --> 00:15:18,580
and the other things we have ongoing and one of them I

315
00:15:18,580 --> 00:15:19,720
mentioned here is the

316
00:15:19,720 --> 00:15:23,720
acquired additional hundred megawatts of West Texas solar

317
00:15:23,720 --> 00:15:25,240
and we got that

318
00:15:25,240 --> 00:15:28,279
approved last night at the City Council so that project

319
00:15:28,279 --> 00:15:29,600
called Blue Bail solar

320
00:15:29,600 --> 00:15:36,250
2 scheduled to be online sometime in 2020 and that is a

321
00:15:36,250 --> 00:15:38,120
very attractively

322
00:15:38,120 --> 00:15:42,179
priced fixed price product for 15 years we're involved with

323
00:15:42,179 --> 00:15:42,919
five other

324
00:15:42,919 --> 00:15:46,269
municipalities at the moment in a second solar RFP and

325
00:15:46,269 --> 00:15:47,799
looking to pick up as much

326
00:15:47,799 --> 00:15:50,879
as another hundred and the numbers I've seen so far also

327
00:15:50,879 --> 00:15:51,600
look very very

328
00:15:51,600 --> 00:15:55,559
attractive for us and lastly we'll let that kind of fit

329
00:15:55,559 --> 00:15:57,080
into our portfolio

330
00:15:57,080 --> 00:16:01,230
we'll be looking to go back out to add some additional

331
00:16:01,230 --> 00:16:03,000
renewables and that will

332
00:16:03,000 --> 00:16:05,429
get us basically to the hundred percent want to get those

333
00:16:05,429 --> 00:16:06,440
under contract right

334
00:16:06,440 --> 00:16:09,879
now there's some you know incentives to do that you know

335
00:16:09,879 --> 00:16:11,120
production tax credits

336
00:16:11,120 --> 00:16:14,190
and investment tax credits at the federal level and the

337
00:16:14,190 --> 00:16:15,120
market has just

338
00:16:15,120 --> 00:16:19,639
ripened the market is very very good for this this

339
00:16:19,639 --> 00:16:22,679
technology right now Gibbons

340
00:16:22,679 --> 00:16:27,559
Creek Chris mentioned our coal plant it's going to run this

341
00:16:27,559 --> 00:16:28,559
summer we've got a

342
00:16:28,559 --> 00:16:30,990
mini I call it a mini energy crisis might actually be

343
00:16:30,990 --> 00:16:31,919
bigger than a mini

344
00:16:31,919 --> 00:16:35,389
energy crisis this summer a lot of big power plants in

345
00:16:35,389 --> 00:16:36,879
Texas have retired in

346
00:16:36,879 --> 00:16:40,429
the past year have a hard time competing with lesser priced

347
00:16:40,429 --> 00:16:41,600
natural gas typically

348
00:16:41,600 --> 00:16:45,480
and even some renewables and that's reduced the reserve

349
00:16:45,480 --> 00:16:46,759
margin out there in

350
00:16:46,759 --> 00:16:52,200
aircott to around 10% so prices are starting to rise up on

351
00:16:52,200 --> 00:16:52,679
the forward

352
00:16:52,679 --> 00:16:55,649
market kind of like the stock market going forward and we

353
00:16:55,649 --> 00:16:57,519
're going to see if

354
00:16:57,519 --> 00:16:59,789
there's going to be any shortages or any issues there they

355
00:16:59,789 --> 00:17:00,799
're saying be prepared

356
00:17:00,799 --> 00:17:04,119
and and we're prepared hopefully the Denton Energy Center

357
00:17:04,119 --> 00:17:04,920
will provide a role

358
00:17:04,920 --> 00:17:08,839
in providing some extra reliability to the grid this summer

359
00:17:08,839 --> 00:17:10,599
and and we also

360
00:17:10,599 --> 00:17:14,480
have our Gibbons Creek project which likely this will be

361
00:17:14,480 --> 00:17:16,039
the last hurrah for

362
00:17:16,039 --> 00:17:22,789
that project it's in operation since the early 80s and we

363
00:17:22,789 --> 00:17:24,240
're looking to divest

364
00:17:24,240 --> 00:17:28,059
ourselves of that project and retire it and that kind of

365
00:17:28,059 --> 00:17:29,319
thing so but it is

366
00:17:29,319 --> 00:17:33,109
running this year could possibly run next year depending on

367
00:17:33,109 --> 00:17:34,240
the transaction

368
00:17:34,240 --> 00:17:36,609
that we have involved in what the City Council wants to do

369
00:17:36,609 --> 00:17:37,359
but right now it

370
00:17:37,359 --> 00:17:41,410
looks like that we're only committed through September we

371
00:17:41,410 --> 00:17:42,920
're gonna pay off

372
00:17:42,920 --> 00:17:49,240
the last tranche of generation debt a little bit later this

373
00:17:49,240 --> 00:17:50,880
year of 25 million

374
00:17:50,880 --> 00:17:54,400
dollars so so we'll we'll be able to walk away with at

375
00:17:54,400 --> 00:17:55,920
least that debt gone

376
00:17:55,920 --> 00:17:58,230
we have a little bit of internal debt that we did for some

377
00:17:58,230 --> 00:17:58,960
environmental

378
00:17:58,960 --> 00:18:02,650
controls and so forth and we'll be looking to try to get

379
00:18:02,650 --> 00:18:03,799
that paid off as

380
00:18:03,799 --> 00:18:06,660
soon as possible as soon as the as we're able to handle

381
00:18:06,660 --> 00:18:08,319
that from a financial and

382
00:18:08,319 --> 00:18:12,480
a callable standpoint

383
00:18:18,240 --> 00:18:22,440
does the city own that plant no it's a it's a joint venture

384
00:18:22,440 --> 00:18:24,039
of us and three

385
00:18:24,039 --> 00:18:28,259
other cities we formed a joint action agency called Texas

386
00:18:28,259 --> 00:18:29,559
municipal power

387
00:18:29,559 --> 00:18:33,880
agency about the same time as this plant was conceived and

388
00:18:33,880 --> 00:18:35,000
so they they actually

389
00:18:35,000 --> 00:18:38,289
manage it and operate it for us but we're responsible for

390
00:18:38,289 --> 00:18:38,720
all our

391
00:18:38,720 --> 00:18:41,990
proportional share of the project it's a little over 400

392
00:18:41,990 --> 00:18:43,119
megawatts our piece

393
00:18:43,119 --> 00:18:46,920
right now is 21% and

394
00:18:49,920 --> 00:18:54,170
yeah so as of September 1st Greenville will walk away from

395
00:18:54,170 --> 00:18:55,200
the project we'll

396
00:18:55,200 --> 00:18:57,710
run it for one more month and we've the other three of us

397
00:18:57,710 --> 00:18:58,599
are sharing their

398
00:18:58,599 --> 00:19:01,930
piece which ought to be pretty attractive we think this

399
00:19:01,930 --> 00:19:02,599
summer based on

400
00:19:02,599 --> 00:19:05,670
our forward assessment of the power market that could be

401
00:19:05,670 --> 00:19:06,640
worth quite a bit

402
00:19:06,640 --> 00:19:09,559
to us the variable cost of the plan you mentioned the debt

403
00:19:09,559 --> 00:19:10,200
piece but the

404
00:19:10,200 --> 00:19:15,269
variable cost is extremely low it's a and so that will make

405
00:19:15,269 --> 00:19:16,599
it you know

406
00:19:16,599 --> 00:19:20,009
generate some good revenues for this summer which I'm

407
00:19:20,009 --> 00:19:21,279
looking forward to

408
00:19:21,279 --> 00:19:26,079
questions on any of this George I do have a question please

409
00:19:26,079 --> 00:19:27,039
sir John Baines

410
00:19:27,039 --> 00:19:34,960
with the black chamber hey John the with the renewable plan

411
00:19:34,960 --> 00:19:39,200
how how well how well

412
00:19:39,200 --> 00:19:43,299
has the public understood the magnitude of this plan is it

413
00:19:43,299 --> 00:19:45,240
well understood

414
00:19:45,240 --> 00:19:49,910
within this community very well I've heard be honest I've

415
00:19:49,910 --> 00:19:50,880
heard nothing

416
00:19:50,880 --> 00:19:54,799
negative it seems like folks believe this is a very

417
00:19:54,799 --> 00:19:57,000
positive direction for

418
00:19:57,000 --> 00:20:00,480
the utility I came in with my I call it eyes wide open

419
00:20:00,480 --> 00:20:03,480
ready to give my input

420
00:20:03,480 --> 00:20:07,910
and good or bad if it didn't make sense I was gonna say

421
00:20:07,910 --> 00:20:09,000
that or if it did make

422
00:20:09,000 --> 00:20:13,079
sense I was gonna get on board the the train and everything

423
00:20:13,079 --> 00:20:14,079
to me it makes

424
00:20:14,079 --> 00:20:17,750
total sense the reason I ask is because most of us don't

425
00:20:17,750 --> 00:20:19,160
really think about

426
00:20:19,160 --> 00:20:23,390
energy until we don't have it until it's you have a brown

427
00:20:23,390 --> 00:20:25,119
out or a black out of

428
00:20:25,119 --> 00:20:28,910
some sort so I just didn't know if the community at large

429
00:20:28,910 --> 00:20:30,440
was appreciating the

430
00:20:30,440 --> 00:20:33,400
magnitude of this project it's a good point in our end that

431
00:20:33,400 --> 00:20:34,160
we will be fine

432
00:20:34,160 --> 00:20:37,759
this some do and some don't some some all they care about

433
00:20:37,759 --> 00:20:40,920
is they care about

434
00:20:40,920 --> 00:20:43,180
that elect that electric bill and now it's coming

435
00:20:43,180 --> 00:20:44,480
electronically so you may

436
00:20:44,480 --> 00:20:48,720
not actually not even look at the bill anymore so yeah

437
00:20:48,720 --> 00:20:49,599
whether the lights are on

438
00:20:49,599 --> 00:20:53,359
or off is like the big deal right and we had a nice

439
00:20:53,359 --> 00:20:54,559
presentation yesterday I was

440
00:20:54,559 --> 00:20:58,000
gratified by the response of the council for presentation

441
00:20:58,000 --> 00:20:59,319
we made our reliability

442
00:20:59,319 --> 00:21:02,319
we also did it for the public utility board the day before

443
00:21:02,319 --> 00:21:03,559
talking about all

444
00:21:03,559 --> 00:21:06,599
the things you know we we dive in deeply to looking at

445
00:21:06,599 --> 00:21:08,680
reliability by substation

446
00:21:08,680 --> 00:21:12,839
and by circuit and by cause you know and we've identified

447
00:21:12,839 --> 00:21:14,200
squirrels the critters

448
00:21:14,200 --> 00:21:17,480
is the number one cause believe it or not for outages and I

449
00:21:17,480 --> 00:21:18,880
had all sorts of

450
00:21:18,880 --> 00:21:23,359
great squirrel pictures that I ended up having to take out

451
00:21:23,359 --> 00:21:25,799
I think we had a

452
00:21:25,799 --> 00:21:29,309
squirrel behind bars or something even you know so so we

453
00:21:29,309 --> 00:21:30,839
have a lot of work

454
00:21:30,839 --> 00:21:33,359
we're doing to improve reliability because we know how bad

455
00:21:33,359 --> 00:21:33,920
it is when you

456
00:21:33,920 --> 00:21:37,549
when my power is out man alive there's so many things that

457
00:21:37,549 --> 00:21:38,960
aren't happening that

458
00:21:38,960 --> 00:21:41,720
need to be happening and we're waiting and we're watching

459
00:21:41,720 --> 00:21:42,720
and and you know the

460
00:21:42,720 --> 00:21:45,319
temperatures rising in our place if it's summertime or

461
00:21:45,319 --> 00:21:46,559
getting colder it and the

462
00:21:46,559 --> 00:21:49,470
night we can't charge this and our refrigerator and our

463
00:21:49,470 --> 00:21:50,480
television on our

464
00:21:50,480 --> 00:21:55,210
internet so our folks do recognize that and we have ninety

465
00:21:55,210 --> 00:21:56,400
nine point nine nine

466
00:21:56,400 --> 00:22:00,279
eight percent reliability that's when you evaluate the

467
00:22:00,279 --> 00:22:02,119
customers by time but

468
00:22:02,119 --> 00:22:04,730
even so it's still a problem when we have an outage and I

469
00:22:04,730 --> 00:22:06,119
've been gratified if

470
00:22:06,119 --> 00:22:09,349
I could just speak one more comment I've been gratified by

471
00:22:09,349 --> 00:22:10,680
one how few an outages

472
00:22:10,680 --> 00:22:13,759
that we have here in Denton in my time I'm not getting woke

473
00:22:13,759 --> 00:22:14,720
up and out of bed

474
00:22:14,720 --> 00:22:18,720
middle of the night many places I've been I do get woke up

475
00:22:18,720 --> 00:22:19,460
quite frequently at

476
00:22:19,460 --> 00:22:24,059
night and also how quick and responsive our crews are they

477
00:22:24,059 --> 00:22:25,000
know their job I

478
00:22:25,000 --> 00:22:28,880
don't have to you know trounce around yelling and screaming

479
00:22:28,880 --> 00:22:29,319
or doing anything

480
00:22:29,319 --> 00:22:32,240
like that they they're on it they're hopping to it and

481
00:22:32,240 --> 00:22:33,440
almost by the time they

482
00:22:33,440 --> 00:22:36,140
get the message out that there's an issue they figured it

483
00:22:36,140 --> 00:22:37,119
out and they're

484
00:22:37,119 --> 00:22:39,440
resolving it so

485
00:22:41,440 --> 00:22:45,599
very good about responding in fact if we have an issue we

486
00:22:45,599 --> 00:22:46,519
generally get a phone

487
00:22:46,519 --> 00:22:50,690
call within a couple of minutes with an explanation of what

488
00:22:50,690 --> 00:22:51,640
's going on how long

489
00:22:51,640 --> 00:22:57,680
it's gonna be Jim who you with just okay yep one of our

490
00:22:57,680 --> 00:22:59,240
best customers

491
00:22:59,240 --> 00:23:06,119
I learned that really quickly are they our best

492
00:23:06,119 --> 00:23:08,119
Keely has a question

493
00:23:12,119 --> 00:23:16,059
usually because you mentioned the plan and people don't

494
00:23:16,059 --> 00:23:17,000
really care till their

495
00:23:17,000 --> 00:23:21,000
powers out but to that point the generation aspect of it

496
00:23:21,000 --> 00:23:21,880
isn't when

497
00:23:21,880 --> 00:23:25,039
someone loses power because we have air caught to back that

498
00:23:25,039 --> 00:23:26,039
energy up it's on

499
00:23:26,039 --> 00:23:29,880
the distribution side it's because of the the squirrels and

500
00:23:29,880 --> 00:23:30,960
the lines and the

501
00:23:30,960 --> 00:23:35,289
poles that that is when you're gonna experience an outage

502
00:23:35,289 --> 00:23:36,680
in your house it's

503
00:23:36,680 --> 00:23:40,319
not gonna be because we don't have enough megawatts of

504
00:23:40,319 --> 00:23:41,720
energy coming into

505
00:23:41,720 --> 00:23:45,640
our city very good point extremely rare in the history of

506
00:23:45,640 --> 00:23:46,599
the art business that

507
00:23:46,599 --> 00:23:49,329
we don't have enough electrons from a power supply

508
00:23:49,329 --> 00:23:51,279
standpoint however this

509
00:23:51,279 --> 00:23:53,619
summer that you know if there is an issue that actually

510
00:23:53,619 --> 00:23:54,480
could be the issue

511
00:23:54,480 --> 00:23:58,220
if I want two units drop off line we lose that reserve

512
00:23:58,220 --> 00:23:59,759
margin then we may not

513
00:23:59,759 --> 00:24:02,740
have enough electrons so it's like I say a very very rare

514
00:24:02,740 --> 00:24:04,000
case and we'll have to

515
00:24:04,000 --> 00:24:07,630
go into some kind of a load shedding mode where we you know

516
00:24:07,630 --> 00:24:08,839
we drop a circuit

517
00:24:08,839 --> 00:24:13,109
for 15 or 20 or 30 minutes and put it back on before that

518
00:24:13,109 --> 00:24:14,480
gets too hot and then

519
00:24:14,480 --> 00:24:16,619
get it and drop another circuit we don't want to have to do

520
00:24:16,619 --> 00:24:17,519
that we're hoping we

521
00:24:17,519 --> 00:24:22,589
don't George I was on PUB for about eight years okay and I

522
00:24:22,589 --> 00:24:24,240
remember some of

523
00:24:24,240 --> 00:24:30,410
our spirited discussions about as the city grows and the

524
00:24:30,410 --> 00:24:32,319
demand for electricity

525
00:24:32,319 --> 00:24:36,009
grows I believe that was one of the things that caused this

526
00:24:36,009 --> 00:24:36,880
particular

527
00:24:36,880 --> 00:24:40,880
project to be put on the map is that as we're getting more

528
00:24:40,880 --> 00:24:42,440
houses more plants

529
00:24:42,440 --> 00:24:46,269
etc etc the demand for energy was increasing and so without

530
00:24:46,269 --> 00:24:47,160
this I think

531
00:24:47,160 --> 00:24:50,960
we'd really be in trouble yeah good point or or alternative

532
00:24:50,960 --> 00:24:51,920
ly for relying on

533
00:24:51,920 --> 00:24:56,329
other people to build power plants for us then one we haven

534
00:24:56,329 --> 00:24:57,799
't done our part to

535
00:24:57,799 --> 00:25:01,220
preserve the environment potentially and two we're subject

536
00:25:01,220 --> 00:25:02,680
to quite a bit higher

537
00:25:02,680 --> 00:25:05,829
prices so you know just the ballpark maybe the market

538
00:25:05,829 --> 00:25:07,359
prices are twice what it

539
00:25:07,359 --> 00:25:10,279
costs us for these renewable projects we would pay that

540
00:25:10,279 --> 00:25:11,420
much instead of this so

541
00:25:11,420 --> 00:25:14,839
we're we're controlling our own destiny price wise also

542
00:25:14,839 --> 00:25:15,759
that's very good point

543
00:25:15,759 --> 00:25:20,509
and as a kind of a bowl on this I think we've got to do

544
00:25:20,509 --> 00:25:22,599
maybe a better job of

545
00:25:22,599 --> 00:25:26,470
letting people know how good we have it here you know and

546
00:25:26,470 --> 00:25:28,519
they could be worse you

547
00:25:28,519 --> 00:25:34,910
know if we didn't have this kind of operation in place and

548
00:25:34,910 --> 00:25:37,759
that if we were

549
00:25:37,759 --> 00:25:41,799
subject to the volatility of the market you know pricing

550
00:25:41,799 --> 00:25:43,240
could be quite a bit

551
00:25:43,240 --> 00:25:51,160
different every month if you looked at you feel well I love

552
00:25:51,160 --> 00:25:51,960
those thoughts I'm

553
00:25:51,960 --> 00:25:55,730
a true believer of local control of public power you know

554
00:25:55,730 --> 00:25:56,839
this utilities

555
00:25:56,839 --> 00:26:00,079
technically owned by the city and by the citizens and it's

556
00:26:00,079 --> 00:26:01,359
controlled and managed

557
00:26:01,359 --> 00:26:04,779
locally you know you can pick up the phone and talk to the

558
00:26:04,779 --> 00:26:06,240
big boss at the

559
00:26:06,240 --> 00:26:09,759
electric company you can't do that with a private company

560
00:26:09,759 --> 00:26:11,079
if you were to have a

561
00:26:11,079 --> 00:26:13,809
private supplier for instance or possibly even one of these

562
00:26:13,809 --> 00:26:14,480
competitive

563
00:26:14,480 --> 00:26:16,880
suppliers that are out there if you live outside of Denton

564
00:26:16,880 --> 00:26:17,640
you know good luck

565
00:26:17,640 --> 00:26:20,220
trying to get a hold of a of somebody that knows something

566
00:26:20,220 --> 00:26:21,119
at those agencies

567
00:26:21,119 --> 00:26:23,950
so I worked ten years in the private sector 30 years now in

568
00:26:23,950 --> 00:26:24,880
the public the

569
00:26:24,880 --> 00:26:27,359
public is the place to be and where you can make a

570
00:26:27,359 --> 00:26:28,880
difference you can say hey I

571
00:26:28,880 --> 00:26:32,359
want these kind of streetlights I want underground overhead

572
00:26:32,359 --> 00:26:33,400
I'm willing to pay

573
00:26:33,400 --> 00:26:35,599
for it and all those kinds of things but I can make those

574
00:26:35,599 --> 00:26:36,599
decisions I don't have

575
00:26:36,599 --> 00:26:41,240
that let a commission hundreds of miles away making those

576
00:26:41,240 --> 00:26:42,680
for us and or or some

577
00:26:42,680 --> 00:26:47,109
folks in an executive suite high up in some tall buildings

578
00:26:47,109 --> 00:26:48,359
so so I it's it's

579
00:26:48,359 --> 00:26:51,710
great to be part of that 2,000 member public power

580
00:26:51,710 --> 00:26:52,980
community in the United

581
00:26:52,980 --> 00:26:57,309
States and about 78 I think in Texas we're one of those one

582
00:26:57,309 --> 00:26:58,319
of the larger

583
00:26:58,319 --> 00:27:02,279
ones in the country and in the state so George on the we

584
00:27:02,279 --> 00:27:03,559
retire the Gibbons

585
00:27:03,559 --> 00:27:08,059
Creek plant that didn't energy center will pick up the

586
00:27:08,059 --> 00:27:08,599
slack

587
00:27:12,039 --> 00:27:15,579
in the short run we'll have a little more open position we

588
00:27:15,579 --> 00:27:16,440
've had a lot of

589
00:27:16,440 --> 00:27:19,690
open position in the past and we're which means we did a

590
00:27:19,690 --> 00:27:20,559
lot of market

591
00:27:20,559 --> 00:27:23,210
purchases and which was fine because the market prices were

592
00:27:23,210 --> 00:27:24,039
declining but they're

593
00:27:24,039 --> 00:27:27,440
moving back up dramatically the new renewables will fill

594
00:27:27,440 --> 00:27:28,619
that gap and we'll

595
00:27:28,619 --> 00:27:31,849
go back and buy some from the market in the short run

596
00:27:31,849 --> 00:27:33,539
before the renewables all

597
00:27:33,539 --> 00:27:36,319
come into play and the Denton Energy Center will be a

598
00:27:36,319 --> 00:27:37,519
revenue source in and

599
00:27:37,519 --> 00:27:40,799
of itself so it kind of offsets our costs the way the

600
00:27:40,799 --> 00:27:42,319
market works today you

601
00:27:42,319 --> 00:27:45,609
buy all your load so everything people use in Denton we go

602
00:27:45,609 --> 00:27:46,680
and purchase from

603
00:27:46,680 --> 00:27:50,309
this so-called market out there and then we sell everything

604
00:27:50,309 --> 00:27:51,640
that we own into that

605
00:27:51,640 --> 00:27:55,160
and it results in a credit basically against what we pay

606
00:27:55,160 --> 00:27:56,480
for our load that's

607
00:27:56,480 --> 00:28:01,759
the competitive market in Texas and so yes this will be a

608
00:28:01,759 --> 00:28:03,880
hedge toward that and

609
00:28:03,880 --> 00:28:07,640
the renewables plug a hole that we've had for a long time

610
00:28:07,640 --> 00:28:09,079
one of the reasons

611
00:28:09,079 --> 00:28:11,980
renewables are not adopted as quickly and as much as

612
00:28:11,980 --> 00:28:13,119
possible in other

613
00:28:13,119 --> 00:28:17,400
jurisdictions is because they are stranding assets they

614
00:28:17,400 --> 00:28:18,319
have power plants

615
00:28:18,319 --> 00:28:21,039
they've already built some of them not as old as the Gib

616
00:28:21,039 --> 00:28:21,920
bons Creek maybe a

617
00:28:21,920 --> 00:28:24,470
little bit newer that they don't want to retire and say hey

618
00:28:24,470 --> 00:28:25,640
I got all this cost

619
00:28:25,640 --> 00:28:28,640
still on my books so they continue to operate those and

620
00:28:28,640 --> 00:28:29,400
operate those that's

621
00:28:29,400 --> 00:28:32,930
it's an economic dislocation to do renewables fortunately

622
00:28:32,930 --> 00:28:33,400
we were in a

623
00:28:33,400 --> 00:28:36,119
position where we had a hole and we were filling it with

624
00:28:36,119 --> 00:28:37,319
short-term market

625
00:28:37,319 --> 00:28:40,440
purchases now we can make its time is right to make

626
00:28:40,440 --> 00:28:42,160
investments going forward

627
00:28:42,160 --> 00:28:45,480
so it's really a as I mentioned yesterday kind of a sweet

628
00:28:45,480 --> 00:28:46,799
spot for for

629
00:28:46,799 --> 00:28:51,019
Denton to be able to fill its open position it's vacant you

630
00:28:51,019 --> 00:28:51,400
know it's

631
00:28:51,400 --> 00:28:53,680
shortage and power supply with something that's very

632
00:28:53,680 --> 00:28:54,720
environmentally and

633
00:28:54,720 --> 00:28:58,119
economically attractive so

634
00:28:58,119 --> 00:29:01,230
one other question how do we compete I know that our kilow

635
00:29:01,230 --> 00:29:02,519
att price per kilowatt hours

636
00:29:02,519 --> 00:29:06,920
from as a Californian who moved here incredibly inexpensive

637
00:29:06,920 --> 00:29:07,680
how do we compete

638
00:29:07,680 --> 00:29:11,019
against our other local markets and do we put that as in

639
00:29:11,019 --> 00:29:11,920
our economic

640
00:29:11,920 --> 00:29:15,079
development packet when we give we talk for bringing

641
00:29:15,079 --> 00:29:17,000
companies because seven

642
00:29:17,000 --> 00:29:21,130
cents a kilowatt hours ridiculously inexpensive I mean it's

643
00:29:21,130 --> 00:29:21,640
just it's a

644
00:29:21,640 --> 00:29:25,599
wonderful thing yeah so when you're when we're at the table

645
00:29:25,599 --> 00:29:27,319
and even the cities

646
00:29:27,319 --> 00:29:30,259
at the table we do tout the value of having a locally

647
00:29:30,259 --> 00:29:31,640
controlled and operated

648
00:29:31,640 --> 00:29:35,420
utility we're able to manage those costs and and and

649
00:29:35,420 --> 00:29:37,039
provide the level of service

650
00:29:37,039 --> 00:29:40,730
that some of the companies want so we do tout that today we

651
00:29:40,730 --> 00:29:42,519
're about in the

652
00:29:42,519 --> 00:29:44,690
middle of the pack when we look at the competitive

653
00:29:44,690 --> 00:29:46,079
suppliers that are out there

654
00:29:46,079 --> 00:29:48,789
and one of the reasons we're not better than that is

655
00:29:48,789 --> 00:29:50,160
because they have lived

656
00:29:50,160 --> 00:29:52,809
what's called short-term energy and energy gas prices have

657
00:29:52,809 --> 00:29:54,400
been dropping for

658
00:29:54,400 --> 00:29:57,680
a long time so they've taken advantage of that drop in the

659
00:29:57,680 --> 00:29:59,799
spot market and to

660
00:29:59,799 --> 00:30:02,059
me the price they're going to start paying will be this

661
00:30:02,059 --> 00:30:02,920
summer they've

662
00:30:02,920 --> 00:30:05,869
stayed short they've stayed open kind of like we were and

663
00:30:05,869 --> 00:30:06,880
they and they're going

664
00:30:06,880 --> 00:30:08,599
to have to go pay these really really high prices that we

665
00:30:08,599 --> 00:30:09,240
're going to start

666
00:30:09,240 --> 00:30:12,069
seeing this summer and already in just one month I saw we

667
00:30:12,069 --> 00:30:13,559
moved seven places in

668
00:30:13,559 --> 00:30:17,880
a list of about 50 utilities they went up higher than us

669
00:30:17,880 --> 00:30:19,119
just in the last month

670
00:30:19,119 --> 00:30:21,250
and I think over the next couple of months we're gonna be

671
00:30:21,250 --> 00:30:22,119
moving even closer

672
00:30:22,119 --> 00:30:25,799
so we're in about the middle of the pack today and and for

673
00:30:25,799 --> 00:30:27,039
that you're getting a

674
00:30:27,039 --> 00:30:31,049
grid that is being managed and built to serve Denton 20 and

675
00:30:31,049 --> 00:30:32,599
30 years out there

676
00:30:32,599 --> 00:30:37,130
it's a I was amazed at how ambitious and a program that we

677
00:30:37,130 --> 00:30:38,319
did have and as I

678
00:30:38,319 --> 00:30:43,039
studied it Carolyn oh well before you talk a little bit

679
00:30:43,039 --> 00:30:44,119
more about the grid I

680
00:30:44,119 --> 00:30:47,589
just want to point out to you that you know the middle of

681
00:30:47,589 --> 00:30:48,720
the pack is you know

682
00:30:48,720 --> 00:30:52,170
that's about where DME's pricing has been over the four

683
00:30:52,170 --> 00:30:53,839
years that I've been here

684
00:30:53,839 --> 00:30:58,329
but two really important things that we bring to the

685
00:30:58,329 --> 00:31:00,680
attention of prospects is

686
00:31:00,680 --> 00:31:04,180
that reliability issue that George discussed which is

687
00:31:04,180 --> 00:31:05,640
incredibly important

688
00:31:05,640 --> 00:31:09,480
especially for certain industries like manufacturing but

689
00:31:09,480 --> 00:31:11,839
then the consistency

690
00:31:11,839 --> 00:31:16,920
of the pricing which he also spoke to you know why DME can

691
00:31:16,920 --> 00:31:17,839
't maintains

692
00:31:17,839 --> 00:31:20,619
relatively level and steady pricing versus some of these

693
00:31:20,619 --> 00:31:21,480
other providers

694
00:31:21,480 --> 00:31:24,990
that have that volatility because of the way that they do

695
00:31:24,990 --> 00:31:27,000
their energy pricing so

696
00:31:27,000 --> 00:31:29,920
we just make sure that we are are talking about you know

697
00:31:29,920 --> 00:31:30,839
maybe we're not

698
00:31:30,839 --> 00:31:34,130
at the very bottom end of the the price range but there are

699
00:31:34,130 --> 00:31:35,319
these other things

700
00:31:35,319 --> 00:31:38,140
that will provide stability and take away some of that

701
00:31:38,140 --> 00:31:39,359
uncertainty which is

702
00:31:39,359 --> 00:31:42,910
what everybody's trying to minimize yeah yeah and and I

703
00:31:42,910 --> 00:31:44,079
think what I've already

704
00:31:44,079 --> 00:31:47,039
heard is if you need something at your business if you need

705
00:31:47,039 --> 00:31:47,920
to be let's say you

706
00:31:47,920 --> 00:31:50,069
have a new business and you need to be hooked up or you

707
00:31:50,069 --> 00:31:50,759
need to have the

708
00:31:50,759 --> 00:31:53,349
utility out there to do something because you only have

709
00:31:53,349 --> 00:31:54,200
this short period

710
00:31:54,200 --> 00:31:58,240
of time in a window to get in there we make it happen you

711
00:31:58,240 --> 00:31:59,119
know and we're very

712
00:31:59,119 --> 00:32:03,519
responsive to that that is not how typically these other

713
00:32:03,519 --> 00:32:04,160
distribution

714
00:32:04,160 --> 00:32:07,180
companies work you get in a queue you get on a list and

715
00:32:07,180 --> 00:32:09,680
there you work with

716
00:32:09,680 --> 00:32:12,750
their schedule and they don't necessarily work with yours

717
00:32:12,750 --> 00:32:13,319
every place

718
00:32:13,319 --> 00:32:16,750
I've been so Jim you can probably testify to that it been

719
00:32:16,750 --> 00:32:17,640
pretty responsive

720
00:32:17,640 --> 00:32:21,799
when you have an issue I think that's gonna be the

721
00:32:34,799 --> 00:32:39,349
wonderful that level of service so we are in the middle of

722
00:32:39,349 --> 00:32:40,079
this major

723
00:32:40,079 --> 00:32:44,220
expansion and upgrade the system locally that the subst

724
00:32:44,220 --> 00:32:45,359
ations and the

725
00:32:45,359 --> 00:32:49,240
transmission lines that move power between the substations

726
00:32:49,240 --> 00:32:50,119
had gotten

727
00:32:50,119 --> 00:32:54,309
outdated and old and what has happened is a lot of power is

728
00:32:54,309 --> 00:32:55,519
moving from the

729
00:32:55,519 --> 00:32:58,049
western part of the state as a result of renewables and

730
00:32:58,049 --> 00:32:59,279
places where people can

731
00:32:59,279 --> 00:33:01,930
build cheaper power plants it's going through Denton

732
00:33:01,930 --> 00:33:02,720
because that's how the

733
00:33:02,720 --> 00:33:06,730
grid operates it's an electrical connections to places east

734
00:33:06,730 --> 00:33:07,759
of us and it

735
00:33:07,759 --> 00:33:11,240
was causing a lot of issues and impacts on our system so we

736
00:33:11,240 --> 00:33:13,720
sort of got we were

737
00:33:13,720 --> 00:33:16,680
able to upgrade locally and able to share a lot of that

738
00:33:16,680 --> 00:33:17,799
most if not all that

739
00:33:17,799 --> 00:33:20,750
cost with others in the state under the state's social

740
00:33:20,750 --> 00:33:22,000
ization of transmission

741
00:33:22,000 --> 00:33:26,319
costs and get ourselves a brand new nice high functioning

742
00:33:26,319 --> 00:33:28,519
network and and just

743
00:33:28,519 --> 00:33:30,769
the last piece of it so the substations now are a little

744
00:33:30,769 --> 00:33:32,160
bit like the center we

745
00:33:32,160 --> 00:33:34,890
talked about it yesterday of a wheel right deck the hub and

746
00:33:34,890 --> 00:33:35,599
then there's

747
00:33:35,599 --> 00:33:37,890
spokes going out those spokes actually take power then to

748
00:33:37,890 --> 00:33:39,400
the neighborhoods and

749
00:33:39,400 --> 00:33:41,970
I think Keely indicated it's those spokes a lot of times

750
00:33:41,970 --> 00:33:42,759
that caused the

751
00:33:42,759 --> 00:33:46,519
the issues with service locally because you've got overhead

752
00:33:46,519 --> 00:33:47,680
lines older lines

753
00:33:47,680 --> 00:33:50,200
you've got the critters getting in there they don't usually

754
00:33:50,200 --> 00:33:50,720
affect the

755
00:33:50,720 --> 00:33:53,339
transmission or substations but they do the local line so

756
00:33:53,339 --> 00:33:54,279
that's where we're

757
00:33:54,279 --> 00:33:58,039
doing feeder sweeps right now we're going from one end of

758
00:33:58,039 --> 00:33:59,200
the these little

759
00:33:59,200 --> 00:34:01,660
circuits that come out of the substations we call them feed

760
00:34:01,660 --> 00:34:02,200
ers all the

761
00:34:02,200 --> 00:34:05,809
way to end users and fixing repairing updating replacing

762
00:34:05,809 --> 00:34:07,240
putting this critter

763
00:34:07,240 --> 00:34:10,619
protection out there that's we found some that actually

764
00:34:10,619 --> 00:34:11,679
seems to work and

765
00:34:11,679 --> 00:34:14,369
just in the last couple of months we've been very

766
00:34:14,369 --> 00:34:16,000
aggressive that we've seen

767
00:34:16,000 --> 00:34:24,360
the results of that so so that's that's my little pitch on

768
00:34:24,360 --> 00:34:25,360
that local grid so

769
00:34:25,360 --> 00:34:27,659
customers come to Denton we're going to be there we have

770
00:34:27,659 --> 00:34:28,480
plenty of capacity

771
00:34:28,480 --> 00:34:33,199
plenty of reliability you know be you cold storage or data

772
00:34:33,199 --> 00:34:35,679
farm or you know

773
00:34:35,679 --> 00:34:40,050
production facility for like a Peterbilt and we'll be there

774
00:34:40,050 --> 00:34:42,199
so in conclusion DME

775
00:34:42,199 --> 00:34:45,030
prepared for the future was the thing that came to mind

776
00:34:45,030 --> 00:34:46,079
when I put this slide

777
00:34:46,079 --> 00:34:50,179
together significant expansion and modernization of the

778
00:34:50,179 --> 00:34:51,880
grid here locally

779
00:34:51,880 --> 00:34:56,639
leadership by the City Council and the utility and using

780
00:34:56,639 --> 00:34:57,239
environmentally

781
00:34:57,239 --> 00:34:59,699
positive power resources with that hundred percent

782
00:34:59,699 --> 00:35:00,880
renewable goal which as

783
00:35:00,880 --> 00:35:03,460
I said makes sense today if it didn't make sense I was

784
00:35:03,460 --> 00:35:04,320
going to say something

785
00:35:04,320 --> 00:35:06,570
that's what I meant to finish my thought a little bit

786
00:35:06,570 --> 00:35:07,840
earlier and say oh guys are

787
00:35:07,840 --> 00:35:10,610
you sure you want to do this because for the first 35 years

788
00:35:10,610 --> 00:35:11,719
of my career didn't

789
00:35:11,719 --> 00:35:14,719
really make sense you had to do it for other reasons since

790
00:35:14,719 --> 00:35:15,360
from an economic

791
00:35:15,360 --> 00:35:18,559
standpoint but it clearly does today both from an

792
00:35:18,559 --> 00:35:19,280
environmental and economic

793
00:35:19,280 --> 00:35:24,280
standpoint and lastly you know it I know there's different

794
00:35:24,280 --> 00:35:25,599
perspectives about the

795
00:35:25,599 --> 00:35:29,199
Denton Energy Center you know I think we're working through

796
00:35:29,199 --> 00:35:31,079
that but it is a

797
00:35:31,079 --> 00:35:35,179
big project for us an important one and one that we know is

798
00:35:35,179 --> 00:35:36,719
invested by you and

799
00:35:36,719 --> 00:35:40,099
the citizens and the businesses we're going to optimize the

800
00:35:40,099 --> 00:35:40,920
value of that

801
00:35:40,920 --> 00:35:46,280
plant going forward and I think as Chris mentioned one of

802
00:35:46,280 --> 00:35:48,159
the big times when it

803
00:35:48,159 --> 00:35:50,880
could have value is when the renew when the winds not there

804
00:35:50,880 --> 00:35:52,599
we have prices going

805
00:35:52,599 --> 00:35:57,710
to $9,000 a megawatt hour and you pay maybe $100 at your

806
00:35:57,710 --> 00:35:58,639
house if I could put

807
00:35:58,639 --> 00:36:02,360
it in those terms 9,000 when the wind just disappeared what

808
00:36:02,360 --> 00:36:04,199
a cold front wind

809
00:36:04,199 --> 00:36:07,440
stopped the front came through and prices went to 9,000

810
00:36:07,440 --> 00:36:08,199
this would be when

811
00:36:08,199 --> 00:36:10,750
something like this could be extremely valuable and because

812
00:36:10,750 --> 00:36:11,519
otherwise we're

813
00:36:11,519 --> 00:36:14,119
going to pay that 9,000 because we have to buy our load as

814
00:36:14,119 --> 00:36:15,000
you remember from the

815
00:36:15,000 --> 00:36:17,880
market and at the same time we can get credit for it by

816
00:36:17,880 --> 00:36:19,199
operating the deck so

817
00:36:19,199 --> 00:36:23,550
so that's the value it not necessarily required technically

818
00:36:23,550 --> 00:36:24,639
to have renewables

819
00:36:24,639 --> 00:36:27,250
but it does provide a little bit of a hedge and a buffer so

820
00:36:27,250 --> 00:36:27,920
those are my

821
00:36:27,920 --> 00:36:32,960
comments it's nice meeting everybody any further questions

822
00:36:34,199 --> 00:36:38,500
so one question just that I'm not directly associated with

823
00:36:38,500 --> 00:36:39,360
but your

824
00:36:39,360 --> 00:36:43,199
philosophy on substations you have in my understanding

825
00:36:43,199 --> 00:36:44,559
there's two there's hey

826
00:36:44,559 --> 00:36:47,469
greenery around the substations okay to kind of screen it

827
00:36:47,469 --> 00:36:48,960
and then there's hey I

828
00:36:48,960 --> 00:36:51,849
don't want trees etc planted around the substations people

829
00:36:51,849 --> 00:36:53,239
could climb it get in

830
00:36:53,239 --> 00:36:56,869
there animals whatever that is what do you what do you fall

831
00:36:56,869 --> 00:36:57,559
on future

832
00:36:57,559 --> 00:37:02,119
substations either a screening or kind of keeping

833
00:37:02,119 --> 00:37:03,280
everything away from them to

834
00:37:03,280 --> 00:37:07,440
keep it safe you know the business has evolved dramatically

835
00:37:07,440 --> 00:37:08,719
with respect to

836
00:37:08,719 --> 00:37:11,530
that in the old days it was a chain-link fence that's what

837
00:37:11,530 --> 00:37:12,280
you got right with a

838
00:37:12,280 --> 00:37:16,199
sign saying high voltage stay away there's so many of those

839
00:37:16,199 --> 00:37:17,000
around the

840
00:37:17,000 --> 00:37:19,969
country probably in the Dallas area some of the older subst

841
00:37:19,969 --> 00:37:21,119
ations I think that's

842
00:37:21,119 --> 00:37:25,960
not our approach so our approaches we're going to try to

843
00:37:25,960 --> 00:37:28,400
make the substation as

844
00:37:28,400 --> 00:37:31,559
aesthetically pleasing as possible at the same time you did

845
00:37:31,559 --> 00:37:32,219
raise some

846
00:37:32,219 --> 00:37:37,800
appropriate concerns we are concerned about safety and and

847
00:37:37,800 --> 00:37:38,760
and also concerned

848
00:37:38,760 --> 00:37:41,269
about the the critters being able to hop the tree hop the

849
00:37:41,269 --> 00:37:42,360
fence and pop on over

850
00:37:42,360 --> 00:37:45,989
though those guys can figure out how to do anything anyway

851
00:37:45,989 --> 00:37:47,039
so is there some

852
00:37:47,039 --> 00:37:50,360
trees is there a substation you're thinking about council

853
00:37:50,360 --> 00:37:52,159
man

854
00:37:52,159 --> 00:37:55,170
I didn't know was there until I had to get it up on it and

855
00:37:55,170 --> 00:37:55,880
look through the

856
00:37:55,880 --> 00:38:00,360
trees and so I asked previously before you got here and

857
00:38:00,360 --> 00:38:01,480
they that was their

858
00:38:01,480 --> 00:38:05,059
explanation hey we don't like to screen them because it

859
00:38:05,059 --> 00:38:06,639
provides opportunities

860
00:38:06,639 --> 00:38:10,340
for people to climb the trees animals upon the trees and

861
00:38:10,340 --> 00:38:10,800
then hop over so

862
00:38:10,800 --> 00:38:14,360
that's why ours do not have that screening but we do have

863
00:38:14,360 --> 00:38:15,079
we do have nice

864
00:38:15,079 --> 00:38:19,559
fences though right we have some is that your preference to

865
00:38:19,559 --> 00:38:20,800
have kind of

866
00:38:20,800 --> 00:38:24,079
decorative brick or something like that but not to have

867
00:38:24,079 --> 00:38:25,599
greenery in front of it

868
00:38:25,599 --> 00:38:28,719
to kind of screen it is that am I capturing that right yes

869
00:38:28,719 --> 00:38:29,039
you know I've

870
00:38:29,039 --> 00:38:33,110
done them in the middle of the woods if I had to to kind of

871
00:38:33,110 --> 00:38:34,159
make them as

872
00:38:34,159 --> 00:38:37,889
compatible with the community so I think trees per se is

873
00:38:37,889 --> 00:38:39,159
not negative we might

874
00:38:39,159 --> 00:38:41,460
have to look and I'd be happy to look and talk to our folks

875
00:38:41,460 --> 00:38:42,079
a little more

876
00:38:42,079 --> 00:38:44,659
about that that hasn't really come on my radar at the

877
00:38:44,659 --> 00:38:47,679
moment maybe there's might

878
00:38:47,679 --> 00:38:50,039
depend if we've got some underground facilities there also

879
00:38:50,039 --> 00:38:50,840
and we're trying

880
00:38:50,840 --> 00:38:53,400
to dodge and duck maybe that we don't have enough easement

881
00:38:53,400 --> 00:38:53,980
outside the

882
00:38:53,980 --> 00:38:56,380
substation because some of these substations are pretty

883
00:38:56,380 --> 00:38:56,679
tight

884
00:38:56,679 --> 00:39:01,610
particularly if in the inner city area so let me just dig

885
00:39:01,610 --> 00:39:02,840
into that a little

886
00:39:02,840 --> 00:39:07,550
bit I think I'm okay with providing as much aesthetics as

887
00:39:07,550 --> 00:39:08,400
possible that's

888
00:39:08,400 --> 00:39:13,550
consistent with the other objectives oh Chris gonna take

889
00:39:13,550 --> 00:39:14,880
care of this for me

890
00:39:14,880 --> 00:39:19,280
I've been around for a while so it's here before George mr.

891
00:39:19,280 --> 00:39:20,599
one one have you

892
00:39:20,599 --> 00:39:23,659
are you familiar with our Cooper Creek substation it's of

893
00:39:23,659 --> 00:39:26,440
Audre Lane and loop

894
00:39:26,440 --> 00:39:30,320
288 it kind of sets back and it actually bumps up to a

895
00:39:30,320 --> 00:39:31,760
neighborhood so it's a it

896
00:39:31,760 --> 00:39:34,989
was a greenfield site that we built and so to kind of

897
00:39:34,989 --> 00:39:36,659
accommodate that we had

898
00:39:36,659 --> 00:39:41,030
some room is we planted a tree buffer between the houses

899
00:39:41,030 --> 00:39:42,880
and we left about 50

900
00:39:42,880 --> 00:39:46,320
feet to kind of maintain that clear zone but we were able

901
00:39:46,320 --> 00:39:47,719
to plant trees for the

902
00:39:47,719 --> 00:39:51,559
houses to kind of to separate them or give them a buffer

903
00:39:51,559 --> 00:39:52,659
between the

904
00:39:52,659 --> 00:39:56,860
substation so in that situation yeah that works out so so

905
00:39:56,860 --> 00:39:58,119
our goals are met

906
00:39:58,119 --> 00:40:01,369
and then we could also provide the the neighbors with some

907
00:40:01,369 --> 00:40:02,440
some tree buffer

908
00:40:02,440 --> 00:40:08,239
where possible yeah we had we had enough room so we

909
00:40:08,239 --> 00:40:09,360
actually planted trees we put

910
00:40:09,360 --> 00:40:12,019
irrigation in the trees are coming in but that's a

911
00:40:12,019 --> 00:40:13,599
situation where every site

912
00:40:13,599 --> 00:40:16,800
we go to we still go through the the development process

913
00:40:16,800 --> 00:40:17,559
there is a tree

914
00:40:17,559 --> 00:40:20,429
requirement even though the substations themselves cannot

915
00:40:20,429 --> 00:40:21,480
have trees in them our

916
00:40:21,480 --> 00:40:24,469
area that's left around there is still subject to the didn

917
00:40:24,469 --> 00:40:25,599
't development code

918
00:40:25,599 --> 00:40:29,030
so we plant trees where we need to or where we have room or

919
00:40:29,030 --> 00:40:29,960
where it's not

920
00:40:29,960 --> 00:40:33,860
going to become a reliability to try to offset the visual

921
00:40:33,860 --> 00:40:35,280
impact of a substation

922
00:40:35,280 --> 00:40:39,570
okay so I guess my ask would be if you can follow up me and

923
00:40:39,570 --> 00:40:40,280
it can be an email

924
00:40:40,280 --> 00:40:42,980
but I'd be curious to see once we get there what you're

925
00:40:42,980 --> 00:40:43,639
getting what's gonna

926
00:40:43,639 --> 00:40:46,400
go in on Bonnie right there as you clear that out kind of

927
00:40:46,400 --> 00:40:47,920
what you envision that

928
00:40:47,920 --> 00:40:51,199
to look like so that's Bonnie break between Hickory Oak

929
00:40:51,199 --> 00:40:51,920
right there's one

930
00:40:51,920 --> 00:40:54,920
there yeah yeah that'd be our new Hickory substation yes

931
00:40:54,920 --> 00:40:57,199
okay thank you

932
00:40:57,199 --> 00:41:03,679
anybody else have any questions or comments I would just

933
00:41:03,679 --> 00:41:04,280
remind everybody

934
00:41:04,280 --> 00:41:09,349
given the word economic development board DME plays a huge

935
00:41:09,349 --> 00:41:10,719
part in our

936
00:41:10,719 --> 00:41:13,690
negotiations with companies coming in because electricity

937
00:41:13,690 --> 00:41:14,679
is a big part of the

938
00:41:14,679 --> 00:41:20,440
battle target cold storage or cold distribution center

939
00:41:20,440 --> 00:41:21,679
comes in there's an

940
00:41:21,679 --> 00:41:24,829
electricity so they're immensely important to the whole

941
00:41:24,829 --> 00:41:25,679
process as we're

942
00:41:25,679 --> 00:41:30,110
talking to folks so appreciate y'all being here today you

943
00:41:30,110 --> 00:41:31,440
can you're welcome

944
00:41:31,440 --> 00:41:43,860
to stay all right next we have item EDP 18 - 29 to have a

945
00:41:43,860 --> 00:41:45,760
report on the an

946
00:41:45,760 --> 00:41:49,679
update on the public improvement district guidelines

947
00:41:49,679 --> 00:41:50,920
Caroline will

948
00:41:50,920 --> 00:41:57,000
present that good morning everybody I'm going to give you a

949
00:41:57,000 --> 00:42:00,280
quick update on our

950
00:42:00,280 --> 00:42:04,639
council review of the public improvement district

951
00:42:04,639 --> 00:42:06,760
guidelines that you all have

952
00:42:06,760 --> 00:42:11,269
discussed a couple times before so I'm gonna go through

953
00:42:11,269 --> 00:42:12,679
these really quickly

954
00:42:12,679 --> 00:42:16,559
but just wanted to give everyone the quick overview of what

955
00:42:16,559 --> 00:42:17,400
the council's

956
00:42:17,400 --> 00:42:21,559
direction was from the work session that we had on April 10

957
00:42:21,559 --> 00:42:23,360
th they wanted to

958
00:42:23,360 --> 00:42:27,119
re-include residential pids which had previously been

959
00:42:27,119 --> 00:42:29,400
excluded they asked for

960
00:42:29,400 --> 00:42:33,480
some expansion on what demonstrable public benefit is and

961
00:42:33,480 --> 00:42:34,400
how it can be

962
00:42:34,400 --> 00:42:38,760
determined also wanted to make sure that residential purch

963
00:42:38,760 --> 00:42:40,800
asers within a PID would

964
00:42:40,800 --> 00:42:45,719
be clearly informed of the fact that their home is in a PID

965
00:42:45,719 --> 00:42:46,559
and there would

966
00:42:46,559 --> 00:42:50,360
be additional assessments they also asked for a checklist

967
00:42:50,360 --> 00:42:51,239
of development

968
00:42:51,239 --> 00:42:54,960
standards for residential developments requesting PIDs and

969
00:42:54,960 --> 00:42:57,159
the solution to that

970
00:42:57,159 --> 00:43:00,710
because these projects are each going to be unique as they

971
00:43:00,710 --> 00:43:02,280
come forward is we are

972
00:43:02,280 --> 00:43:05,559
working with outside council to create a development

973
00:43:05,559 --> 00:43:07,320
agreement template that is

974
00:43:07,320 --> 00:43:11,199
going to be required for all PIDs and this item can be

975
00:43:11,199 --> 00:43:12,719
addressed in those

976
00:43:12,719 --> 00:43:16,000
templates or in that template and can be customized

977
00:43:16,000 --> 00:43:17,639
depending on the particular

978
00:43:17,639 --> 00:43:21,869
aspects of the project and then there also would we would

979
00:43:21,869 --> 00:43:22,880
retain an

980
00:43:22,880 --> 00:43:28,360
assessment cap so that was council feedback and y'all have

981
00:43:28,360 --> 00:43:29,440
already seen

982
00:43:29,440 --> 00:43:32,750
this so I'm not going to go through it again but there are

983
00:43:32,750 --> 00:43:33,599
specific ways to

984
00:43:33,599 --> 00:43:38,300
mitigate risk and maximize benefits and ensure performance

985
00:43:38,300 --> 00:43:41,119
related to PIDs so you

986
00:43:41,119 --> 00:43:45,579
can't see that but it's in your backup not sure why I

987
00:43:45,579 --> 00:43:47,239
decided it was necessary

988
00:43:47,239 --> 00:43:53,000
to put that in there but basically this is the revision to

989
00:43:53,000 --> 00:43:54,760
the PID guidelines

990
00:43:54,760 --> 00:43:59,579
that we have developed working with our outside council

991
00:43:59,579 --> 00:44:01,199
Julie Fort from Messer

992
00:44:01,199 --> 00:44:04,960
Rockefeller in Fort they're an extremely experienced

993
00:44:04,960 --> 00:44:07,719
municipal law firm and she

994
00:44:07,719 --> 00:44:11,250
has really helped us put some more parameters around

995
00:44:11,250 --> 00:44:12,760
demonstrable public

996
00:44:12,760 --> 00:44:17,449
benefit so we defined it as clearly apparent positive

997
00:44:17,449 --> 00:44:19,000
effect or reduction of

998
00:44:19,000 --> 00:44:22,179
negative effects on the population or community so that's

999
00:44:22,179 --> 00:44:23,280
what the demonstrable

1000
00:44:23,280 --> 00:44:28,630
public benefit is but then if you look further you can see

1001
00:44:28,630 --> 00:44:29,599
that what we've

1002
00:44:29,599 --> 00:44:32,929
decided to do is kind of give examples of what could

1003
00:44:32,929 --> 00:44:34,480
constitute demonstrable

1004
00:44:34,480 --> 00:44:38,900
public benefit for example the development being of higher

1005
00:44:38,900 --> 00:44:39,679
quality and

1006
00:44:39,679 --> 00:44:43,030
occurring sooner than it would if it was left to the open

1007
00:44:43,030 --> 00:44:44,559
market and some further

1008
00:44:44,559 --> 00:44:49,230
detail about what higher quality could mean another sample

1009
00:44:49,230 --> 00:44:50,800
would be development

1010
00:44:50,800 --> 00:44:55,210
in the city's ETJ and the owner is willing to voluntarily

1011
00:44:55,210 --> 00:44:56,400
annex into the

1012
00:44:56,400 --> 00:45:01,230
city a developer could voluntarily pay for some over sizing

1013
00:45:01,230 --> 00:45:02,280
of infrastructure

1014
00:45:02,280 --> 00:45:06,059
and a couple of other things to make sure that the

1015
00:45:06,059 --> 00:45:07,840
development would be

1016
00:45:07,840 --> 00:45:11,650
showing demonstrable public benefit and then we also felt

1017
00:45:11,650 --> 00:45:12,920
that it was really

1018
00:45:12,920 --> 00:45:15,739
important to give some more detail or include the detail

1019
00:45:15,739 --> 00:45:16,360
about how to

1020
00:45:16,360 --> 00:45:19,349
determine whether the PID would be fiscally feasible and

1021
00:45:19,349 --> 00:45:20,840
this is a section

1022
00:45:20,840 --> 00:45:23,380
that incorporates some of those things that y'all have seen

1023
00:45:23,380 --> 00:45:24,239
me present over and

1024
00:45:24,239 --> 00:45:27,539
over again is we don't want to have PID bond terms any

1025
00:45:27,539 --> 00:45:30,340
longer than 30 years the

1026
00:45:30,340 --> 00:45:34,650
value to lien ratio being three to one debt being used for

1027
00:45:34,650 --> 00:45:36,079
reimbursement of

1028
00:45:36,079 --> 00:45:39,400
costs only instead of fronting fronting the money for the

1029
00:45:39,400 --> 00:45:40,880
work so that's just a

1030
00:45:40,880 --> 00:45:44,690
restatement of those things that have been under discussion

1031
00:45:44,690 --> 00:45:45,320
since the

1032
00:45:45,320 --> 00:45:50,360
beginning of the review by both this board and the council

1033
00:45:50,360 --> 00:45:52,320
that's really all

1034
00:45:52,320 --> 00:45:55,510
I wanted to give you as far as the presentation but I'm

1035
00:45:55,510 --> 00:45:56,679
glad to answer any

1036
00:45:56,679 --> 00:46:01,920
questions that anybody has and we do have a recommendation

1037
00:46:01,920 --> 00:46:03,280
on the agenda at

1038
00:46:03,280 --> 00:46:07,070
during the regular meeting if you should so choose to make

1039
00:46:07,070 --> 00:46:07,960
a recommendation to

1040
00:46:07,960 --> 00:46:12,719
council go back to your slide three

1041
00:46:16,719 --> 00:46:27,920
this one one back I'm sorry yeah so the city is going to

1042
00:46:27,920 --> 00:46:28,960
give notice to

1043
00:46:28,960 --> 00:46:32,760
residential purchasers of PID assessments when they buy a

1044
00:46:32,760 --> 00:46:33,840
house so

1045
00:46:33,840 --> 00:46:37,559
there's already there are already rules at the state level

1046
00:46:37,559 --> 00:46:38,920
about disclosure of

1047
00:46:38,920 --> 00:46:44,360
that and we we discussed that so that will clearly be done

1048
00:46:44,360 --> 00:46:45,679
the outside

1049
00:46:45,679 --> 00:46:49,860
council had some good examples of other ways that that can

1050
00:46:49,860 --> 00:46:51,039
be handled with

1051
00:46:51,039 --> 00:46:56,019
postings and you know outside the property itself or you

1052
00:46:56,019 --> 00:46:57,039
know requiring

1053
00:46:57,039 --> 00:47:00,179
certain things of the developer and we can specify what

1054
00:47:00,179 --> 00:47:01,599
that looks like and the

1055
00:47:01,599 --> 00:47:03,820
responsibility would be on the developer to do the

1056
00:47:03,820 --> 00:47:05,280
notification not the city

1057
00:47:05,280 --> 00:47:08,480
itself and that's something that we can address in the

1058
00:47:08,480 --> 00:47:09,960
development agreement

1059
00:47:09,960 --> 00:47:13,250
that would be project specific I just I think the city's

1060
00:47:13,250 --> 00:47:14,199
getting ahead of

1061
00:47:14,199 --> 00:47:22,969
themselves a sales contract will require the seller to just

1062
00:47:22,969 --> 00:47:24,840
disclose that the

1063
00:47:24,840 --> 00:47:28,030
title company will have to disclose that the lender will

1064
00:47:28,030 --> 00:47:29,719
have to disclose that so

1065
00:47:29,719 --> 00:47:32,940
they're in it that the city is gonna have some kind of

1066
00:47:32,940 --> 00:47:34,239
requirement and fails

1067
00:47:34,239 --> 00:47:38,199
to do something I just think that's I think it's overkill

1068
00:47:38,199 --> 00:47:38,760
they're getting

1069
00:47:38,760 --> 00:47:43,260
noticed as they're buying property it's I promise you that

1070
00:47:43,260 --> 00:47:43,880
it's in there and

1071
00:47:43,880 --> 00:47:48,519
it's a requirement legally so I think this city's stepping

1072
00:47:48,519 --> 00:47:51,280
outside of their

1073
00:47:51,280 --> 00:47:55,679
requirement to have to do that don't disagree that we have

1074
00:47:55,679 --> 00:47:56,960
to notify people

1075
00:47:56,960 --> 00:47:59,360
it's the same thing if you're in a homeowners association

1076
00:47:59,360 --> 00:48:00,119
and there's dues

1077
00:48:00,119 --> 00:48:02,940
or whatever all that has to get done there's laws in place

1078
00:48:02,940 --> 00:48:04,119
to get done and

1079
00:48:04,119 --> 00:48:06,900
as a banker we have to make sure that that's a count of

1080
00:48:06,900 --> 00:48:08,119
that because they're

1081
00:48:08,119 --> 00:48:10,469
gonna pay that can afford to make those payments so I just

1082
00:48:10,469 --> 00:48:11,239
think that's not

1083
00:48:11,239 --> 00:48:14,239
necessary

1084
00:48:14,480 --> 00:48:17,630
he's speaking from one side speaking from another and I'm

1085
00:48:17,630 --> 00:48:18,599
sure Bob will

1086
00:48:18,599 --> 00:48:22,800
appreciate this my other concern would be that if the onus

1087
00:48:22,800 --> 00:48:23,559
what you're saying

1088
00:48:23,559 --> 00:48:26,039
it would just be maybe part of a checklist that the city

1089
00:48:26,039 --> 00:48:26,719
would ask the

1090
00:48:26,719 --> 00:48:32,760
developer to complete but okay I think the wording would be

1091
00:48:32,760 --> 00:48:33,559
important so that

1092
00:48:33,559 --> 00:48:36,050
there would be no liability that would come back on the

1093
00:48:36,050 --> 00:48:37,360
city so that if all of

1094
00:48:37,360 --> 00:48:40,239
these neighbors said hey we got this notice it was checked

1095
00:48:40,239 --> 00:48:40,739
off on the

1096
00:48:40,739 --> 00:48:43,480
developers checklist and this person said well I talked to

1097
00:48:43,480 --> 00:48:44,400
some friends of mine

1098
00:48:44,400 --> 00:48:48,050
they got a notice I didn't so I assumed I didn't I wasn't

1099
00:48:48,050 --> 00:48:49,760
within there in that

1100
00:48:49,760 --> 00:48:53,269
the state or whomever else had given me a notice didn't

1101
00:48:53,269 --> 00:48:54,719
give me or gave me notice

1102
00:48:54,719 --> 00:48:57,530
but they were incorrect if there was some kind of liability

1103
00:48:57,530 --> 00:48:58,360
back on the city

1104
00:48:58,360 --> 00:49:03,260
so as far as due diligence and following up on whether the

1105
00:49:03,260 --> 00:49:04,239
developer

1106
00:49:04,239 --> 00:49:07,869
whether or not they checked that box actually completed

1107
00:49:07,869 --> 00:49:08,880
that notice I'm

1108
00:49:08,880 --> 00:49:13,679
saying is worth maybe a little more conversation well um

1109
00:49:13,679 --> 00:49:15,960
thank you so that's

1110
00:49:15,960 --> 00:49:18,460
one of the reasons why we wanted to bring in an outside

1111
00:49:18,460 --> 00:49:19,360
council that has

1112
00:49:19,360 --> 00:49:23,210
significant experience with crafting these types of

1113
00:49:23,210 --> 00:49:24,960
agreements and has seen

1114
00:49:24,960 --> 00:49:27,780
it done a lot of different ways in a lot of different

1115
00:49:27,780 --> 00:49:29,239
places and could advise

1116
00:49:29,239 --> 00:49:35,679
when we get to that situation so it's it's noted in in the

1117
00:49:35,679 --> 00:49:37,840
policy that there

1118
00:49:37,840 --> 00:49:40,809
will be a requirement that you know in addition to the

1119
00:49:40,809 --> 00:49:42,519
state requirements but

1120
00:49:42,519 --> 00:49:46,449
that's something that when the situation comes up when we

1121
00:49:46,449 --> 00:49:47,679
get to that point with

1122
00:49:47,679 --> 00:49:51,679
the residential PID we're gonna want to rely on our outside

1123
00:49:51,679 --> 00:49:52,519
council to help us

1124
00:49:52,519 --> 00:49:54,869
do that the right way and make sure that we're not opening

1125
00:49:54,869 --> 00:49:55,480
the city up for

1126
00:49:55,480 --> 00:49:59,679
liability or that we're not overstepping our bounds so I

1127
00:49:59,679 --> 00:50:02,360
don't that sounds maybe

1128
00:50:02,360 --> 00:50:05,380
like a little bit of a hedge but we want to continue to

1129
00:50:05,380 --> 00:50:06,960
move the general policy

1130
00:50:06,960 --> 00:50:09,840
forward with the acknowledgement that notice is important

1131
00:50:09,840 --> 00:50:10,760
and we want to make

1132
00:50:10,760 --> 00:50:14,300
sure that people are getting properly noticed and these

1133
00:50:14,300 --> 00:50:15,420
specifics can be

1134
00:50:15,420 --> 00:50:18,840
addressed when we write the development agreement when we

1135
00:50:18,840 --> 00:50:20,079
get to that point I

1136
00:50:20,079 --> 00:50:22,760
understand

1137
00:50:24,559 --> 00:50:29,030
I generally agree with you but I think real-life scenarios

1138
00:50:29,030 --> 00:50:31,360
have changed my

1139
00:50:31,360 --> 00:50:34,340
perspective and I'll give you three so there's one where

1140
00:50:34,340 --> 00:50:35,360
there's a neighborhood

1141
00:50:35,360 --> 00:50:37,559
that's right on the edge of the city of Denton there's

1142
00:50:37,559 --> 00:50:38,400
about eight or nine

1143
00:50:38,400 --> 00:50:41,130
houses that were built and I'm sure they were noticed and I

1144
00:50:41,130 --> 00:50:42,980
'm sure they got they

1145
00:50:42,980 --> 00:50:48,679
were communicated with about their internet provider etc. I

1146
00:50:48,679 --> 00:50:49,119
like their up

1147
00:50:49,119 --> 00:50:52,269
fast forward to the end of the story I'm getting emails

1148
00:50:52,269 --> 00:50:53,559
about hey I have no

1149
00:50:53,559 --> 00:50:57,860
ability for high-speed internet in my neighborhood and it

1150
00:50:57,860 --> 00:50:59,800
'll cost the city if

1151
00:50:59,800 --> 00:51:03,429
we were to try to help bridge that gap the lowest quote I

1152
00:51:03,429 --> 00:51:04,480
think is a hundred

1153
00:51:04,480 --> 00:51:07,500
and fifty thousand dollars and so at that point I don't

1154
00:51:07,500 --> 00:51:08,760
have access to those

1155
00:51:08,760 --> 00:51:12,519
documents to say well no no it's here page 38 where you got

1156
00:51:12,519 --> 00:51:13,880
noticed that's

1157
00:51:13,880 --> 00:51:17,360
not something that you would notice on a sales contract

1158
00:51:17,360 --> 00:51:18,920
well I said but I say

1159
00:51:18,920 --> 00:51:21,880
that to say I would it's a question I would there's

1160
00:51:21,880 --> 00:51:23,679
questions that I would ask

1161
00:51:23,679 --> 00:51:26,289
right and there's questions that how does this work who's

1162
00:51:26,289 --> 00:51:27,039
here you know we're

1163
00:51:27,039 --> 00:51:29,860
talking about it's no different than a school being what

1164
00:51:29,860 --> 00:51:30,800
school district

1165
00:51:30,800 --> 00:51:33,739
command it's completely different because we're talking

1166
00:51:33,739 --> 00:51:34,440
about tax you're

1167
00:51:34,440 --> 00:51:37,440
having to pay money on your lot what the taxes are or

1168
00:51:37,440 --> 00:51:38,440
whatever those are required

1169
00:51:38,440 --> 00:51:41,050
whether you're in a good school district have access to

1170
00:51:41,050 --> 00:51:43,599
internet is a good

1171
00:51:43,599 --> 00:51:45,519
question to know and make sure you get that and somebody

1172
00:51:45,519 --> 00:51:46,199
needs to know that

1173
00:51:46,199 --> 00:51:49,639
and check that out but it's not taxing your property you're

1174
00:51:49,639 --> 00:51:50,639
implying money

1175
00:51:50,639 --> 00:51:53,309
against your property that you have to pay is all I'm

1176
00:51:53,309 --> 00:51:54,480
saying well and so maybe

1177
00:51:54,480 --> 00:51:59,440
I need to zero in on my point my point is this there are

1178
00:51:59,440 --> 00:52:00,559
questions that you

1179
00:52:00,559 --> 00:52:02,690
would assume get asked and there are questions that you

1180
00:52:02,690 --> 00:52:03,480
would assume don't

1181
00:52:03,480 --> 00:52:07,250
follow in the city but I'll tell you those issues fall on

1182
00:52:07,250 --> 00:52:08,199
the city and I want

1183
00:52:08,199 --> 00:52:11,380
access to those documents to then present to the party I'm

1184
00:52:11,380 --> 00:52:12,000
sitting across

1185
00:52:12,000 --> 00:52:16,280
from that's upset upset to say here's the page you're on

1186
00:52:16,280 --> 00:52:18,039
versus not having

1187
00:52:18,039 --> 00:52:21,139
access because the company could have sold they destroyed

1188
00:52:21,139 --> 00:52:22,280
the records they

1189
00:52:22,280 --> 00:52:25,159
didn't keep them they didn't scan them I want something

1190
00:52:25,159 --> 00:52:26,360
under my control under

1191
00:52:26,360 --> 00:52:28,909
the city that I can then present to that individual and say

1192
00:52:28,909 --> 00:52:29,880
hey you were noticed

1193
00:52:29,880 --> 00:52:32,960
and I'm sorry we're in a situation now let's figure it out

1194
00:52:32,960 --> 00:52:35,000
but to not have

1195
00:52:35,000 --> 00:52:38,610
anything under my control that I can defend where we stand

1196
00:52:38,610 --> 00:52:39,639
is not acceptable

1197
00:52:39,639 --> 00:52:43,079
and I don't like it and so there's that instance there's an

1198
00:52:43,079 --> 00:52:43,639
instance in

1199
00:52:43,639 --> 00:52:47,090
southeast didn't a lot was sold to an individual and they

1200
00:52:47,090 --> 00:52:48,519
weren't they say

1201
00:52:48,519 --> 00:52:51,000
they weren't notified I'm assuming it's in the paperwork

1202
00:52:51,000 --> 00:52:52,039
somewhere they didn't

1203
00:52:52,039 --> 00:52:55,139
read it they didn't read it or they don't know I don't know

1204
00:52:55,139 --> 00:52:56,559
I mean you're

1205
00:52:56,559 --> 00:53:00,070
asking me to I'm taking a position that hey it's coming to

1206
00:53:00,070 --> 00:53:01,119
us right it's it and

1207
00:53:01,119 --> 00:53:03,960
so it's it's my job to knock the ball back on the other

1208
00:53:03,960 --> 00:53:05,800
side of the net and so

1209
00:53:05,800 --> 00:53:09,070
that I'm happy to do that but I need I need a racket and so

1210
00:53:09,070 --> 00:53:10,280
this instance

1211
00:53:10,280 --> 00:53:13,920
someone sold a property and all the fees that came with it

1212
00:53:13,920 --> 00:53:14,760
now they're blowing

1213
00:53:14,760 --> 00:53:17,150
back at us and hey we weren't told about these fees and

1214
00:53:17,150 --> 00:53:18,639
these assessments for us

1215
00:53:18,639 --> 00:53:20,889
developed a piece of property they thought they bought a

1216
00:53:20,889 --> 00:53:21,920
heck of a deal you

1217
00:53:21,920 --> 00:53:24,599
know but oh by the way here's a piece that come with

1218
00:53:24,599 --> 00:53:25,599
developing that you know

1219
00:53:25,599 --> 00:53:28,829
and so as much as you say it's in there as much as I'd love

1220
00:53:28,829 --> 00:53:29,840
to say hey it's

1221
00:53:29,840 --> 00:53:33,840
your and on a much smaller scale look at the parking I mean

1222
00:53:33,840 --> 00:53:34,920
Jack Bell parking lot

1223
00:53:34,920 --> 00:53:39,960
has generated more emails then we're not in charge of it

1224
00:53:39,960 --> 00:53:41,159
but the emails come our

1225
00:53:41,159 --> 00:53:45,150
way and so we need to be able to have documentation and we

1226
00:53:45,150 --> 00:53:46,199
put up the signs

1227
00:53:46,199 --> 00:53:50,210
and we do stuff that's uncharacteristically above and

1228
00:53:50,210 --> 00:53:50,800
beyond

1229
00:53:50,800 --> 00:53:54,170
because we need to because those emails are coming whether

1230
00:53:54,170 --> 00:53:55,360
you like it or love it

1231
00:53:55,360 --> 00:53:58,010
it's coming and so you need to be able to address those and

1232
00:53:58,010 --> 00:53:59,119
so while I agree

1233
00:53:59,119 --> 00:54:03,840
with your your position I think the reality is I'm gonna

1234
00:54:03,840 --> 00:54:04,760
get an email about

1235
00:54:04,760 --> 00:54:07,739
it and I want to have it under our control to respond to

1236
00:54:07,739 --> 00:54:09,320
that email not be

1237
00:54:09,320 --> 00:54:12,769
subject to well I think this particular home builder that

1238
00:54:12,769 --> 00:54:14,039
was sold three times

1239
00:54:14,039 --> 00:54:17,809
over and conveyed to a different company maintain the

1240
00:54:17,809 --> 00:54:18,960
records I'll reach out to

1241
00:54:18,960 --> 00:54:22,949
them see if we can convert the laser fish to PDF I don't

1242
00:54:22,949 --> 00:54:24,519
want to do that

1243
00:54:25,360 --> 00:54:28,730
there as far as disclosures and the ability of private

1244
00:54:28,730 --> 00:54:30,119
citizens to contract

1245
00:54:30,119 --> 00:54:35,880
with private companies and and not have those unravel at a

1246
00:54:35,880 --> 00:54:37,719
later date for a law

1247
00:54:37,719 --> 00:54:41,090
that maybe wasn't in place at that time so I think mr.

1248
00:54:41,090 --> 00:54:41,960
Hudson I think there's

1249
00:54:41,960 --> 00:54:46,289
going to be a lot of going through that to try to get to

1250
00:54:46,289 --> 00:54:48,039
where you want to and

1251
00:54:48,039 --> 00:54:50,519
feel you need to be as a council person to be able to

1252
00:54:50,519 --> 00:54:52,519
address these things but

1253
00:54:52,519 --> 00:54:57,199
I don't know that the city has control over all of those

1254
00:54:57,199 --> 00:55:01,760
levers Jim yeah

1255
00:55:01,760 --> 00:55:07,190
turn on this is strictly a request residential this would

1256
00:55:07,190 --> 00:55:08,039
be strictly a

1257
00:55:08,039 --> 00:55:12,570
request from a developer not something that the city could

1258
00:55:12,570 --> 00:55:13,280
go back to a

1259
00:55:13,280 --> 00:55:19,159
developer and say hey we want you to do a fit that's right

1260
00:55:21,559 --> 00:55:26,840
sure from this council session generally every council

1261
00:55:26,840 --> 00:55:28,079
member was in favor of

1262
00:55:28,079 --> 00:55:33,239
some sort of notification beyond and above and until you

1263
00:55:33,239 --> 00:55:34,519
sit in the seat that

1264
00:55:34,519 --> 00:55:38,570
we sit in it's going to be hard to explain why why we feel

1265
00:55:38,570 --> 00:55:39,239
that way

1266
00:55:39,239 --> 00:55:41,480
especially because the seat that you sit in and the

1267
00:55:41,480 --> 00:55:42,800
requirements that you know

1268
00:55:42,800 --> 00:55:46,440
that you have to do but I just wanted to say that that was

1269
00:55:46,440 --> 00:55:49,679
generally an overall

1270
00:55:49,679 --> 00:55:55,519
idea and everybody was pretty much in favor of the notice

1271
00:55:55,519 --> 00:55:56,320
for the giving a

1272
00:55:56,320 --> 00:55:59,840
notice to somebody that's buying a lot in a residential

1273
00:55:59,840 --> 00:56:01,199
neighborhood that's in

1274
00:56:01,199 --> 00:56:06,400
a pin is a good idea the city taking the responsibility of

1275
00:56:06,400 --> 00:56:07,480
doing that is a bad

1276
00:56:07,480 --> 00:56:11,670
idea because logistically doing that at the time somebody's

1277
00:56:11,670 --> 00:56:12,400
doing that I would

1278
00:56:12,400 --> 00:56:14,800
like for somebody on council to walk me through how that's

1279
00:56:14,800 --> 00:56:15,719
going to happen when

1280
00:56:15,719 --> 00:56:18,619
I'm buying a house that's what I do every day I'm just

1281
00:56:18,619 --> 00:56:19,760
telling you right

1282
00:56:19,760 --> 00:56:23,880
there so if the developer is gonna do that that's great

1283
00:56:28,119 --> 00:56:31,719
not how I read it in when I read there so the city was

1284
00:56:31,719 --> 00:56:33,320
gonna notify our

1285
00:56:33,320 --> 00:56:37,440
residential no the can I read you let me read you the way

1286
00:56:37,440 --> 00:56:38,199
that it's phrased in

1287
00:56:38,199 --> 00:56:40,960
here it says the the development agreement shall include

1288
00:56:40,960 --> 00:56:41,360
notice

1289
00:56:41,360 --> 00:56:45,329
requirements to purchasers of the pit to purchase to purch

1290
00:56:45,329 --> 00:56:47,320
asers who would be have

1291
00:56:47,320 --> 00:56:51,719
a pit assessment that exceed the minimum notice required by

1292
00:56:51,719 --> 00:56:52,659
the Texas property

1293
00:56:52,659 --> 00:56:56,059
code so the developer will be asked to give additional

1294
00:56:56,059 --> 00:56:57,039
notice it will be part

1295
00:56:57,039 --> 00:56:59,989
of the development agreement and this is only in the case

1296
00:56:59,989 --> 00:57:02,119
of residential pits so

1297
00:57:02,119 --> 00:57:04,670
I would recommend we change the general language to require

1298
00:57:04,670 --> 00:57:05,480
the developers to

1299
00:57:05,480 --> 00:57:10,019
give notice okay I can do that well we're looking I'm just

1300
00:57:10,019 --> 00:57:11,239
looking at the

1301
00:57:11,239 --> 00:57:13,840
summary but

1302
00:57:18,480 --> 00:57:20,039
yeah I don't think we have an issue with the way that it's

1303
00:57:20,039 --> 00:57:21,760
phrased in the

1304
00:57:21,760 --> 00:57:24,980
agreement it puts the onus on the developer it says this

1305
00:57:24,980 --> 00:57:25,639
will be part of

1306
00:57:25,639 --> 00:57:28,719
the developer agreement

1307
00:57:31,559 --> 00:57:35,699
anybody else have any other questions we're gonna be asked

1308
00:57:35,699 --> 00:57:36,360
to make a

1309
00:57:36,360 --> 00:57:40,440
recommendation when we go into our regular meeting on if we

1310
00:57:40,440 --> 00:57:40,760
want to

1311
00:57:40,760 --> 00:57:46,019
recommend this as presented or not so we think about one go

1312
00:57:46,019 --> 00:57:46,320
into our regular

1313
00:57:46,320 --> 00:57:50,170
meeting we're in a work session meeting right now we have

1314
00:57:50,170 --> 00:57:51,199
to go out of the work

1315
00:57:51,199 --> 00:57:55,760
session and go into a regular meeting

1316
00:57:57,239 --> 00:58:05,519
anything else all right we are now yeah thank you Caroline

1317
00:58:05,519 --> 00:58:06,440
ready to go into our

1318
00:58:06,440 --> 00:58:10,619
regular meeting and consider the minutes of our April 11th

1319
00:58:10,619 --> 00:58:13,239
2018 meeting

1320
00:58:13,239 --> 00:58:20,789
okay and I was absent at that meeting also so we need to

1321
00:58:20,789 --> 00:58:21,960
show that I was

1322
00:58:21,960 --> 00:58:37,760
absent and Jim was absent it is towards the back

1323
00:58:51,960 --> 00:58:54,960
okay

1324
00:59:13,559 --> 00:59:23,329
so I had Jim and Marty is absent any other comments on the

1325
00:59:23,329 --> 00:59:24,159
minutes from our

1326
00:59:24,159 --> 00:59:32,730
April meeting if not I would take a motion I move that the

1327
00:59:32,730 --> 00:59:33,559
minutes be

1328
00:59:33,559 --> 00:59:38,119
accepted as presented as amended maybe excuse me as amended

1329
00:59:38,119 --> 00:59:40,000
thank you second

1330
00:59:40,000 --> 00:59:45,159
the motion and a second all those in favor say aye aye any

1331
00:59:45,159 --> 00:59:48,000
opposed all right

1332
00:59:48,000 --> 00:59:51,519
we need to consider a recommendation to the City Council

1333
00:59:51,519 --> 00:59:53,000
regarding approval of

1334
00:59:53,000 --> 00:59:57,480
the revised public improvement district guidelines

1335
01:00:00,480 --> 01:00:05,880
accept that we recommend the approval of their revised

1336
01:00:05,880 --> 01:00:07,159
public improvement

1337
01:00:07,159 --> 01:00:12,750
district guidelines as written with the comments shared

1338
01:00:12,750 --> 01:00:14,719
regarding putting that

1339
01:00:14,719 --> 01:00:21,840
onus of the notice provision on the developer

1340
01:00:25,920 --> 01:00:31,260
you may want to have any more discussion on that we got a

1341
01:00:31,260 --> 01:00:33,079
motion and a second

1342
01:00:33,079 --> 01:00:37,960
all those in favor say aye I just wanted to thank you for

1343
01:00:37,960 --> 01:00:39,079
your comments

1344
01:00:39,079 --> 01:00:43,440
angel as well anytime we're putting the city at risk it's

1345
01:00:43,440 --> 01:00:45,039
nice to hear somebody

1346
01:00:45,039 --> 01:00:48,590
stand up and hear those other perspectives for sure so I

1347
01:00:48,590 --> 01:00:49,519
appreciate

1348
01:00:49,519 --> 01:00:58,320
the comments all those in favor say aye aye any opposed

1349
01:00:58,320 --> 01:01:01,239
motion is unanimous we

1350
01:01:01,239 --> 01:01:08,739
have staff reports a couple of follow-up items I will

1351
01:01:08,739 --> 01:01:10,320
briefly touch on these and

1352
01:01:10,320 --> 01:01:16,510
would be glad to answer any questions we did provide an

1353
01:01:16,510 --> 01:01:19,559
update for you on the TW

1354
01:01:19,559 --> 01:01:23,750
women in business grants 10 business owners have been

1355
01:01:23,750 --> 01:01:25,840
selected to receive

1356
01:01:25,840 --> 01:01:30,179
$5,000 grant each and there's a list of the businesses

1357
01:01:30,179 --> 01:01:31,880
provided for you in your

1358
01:01:31,880 --> 01:01:34,949
backup there were five new businesses and five existing

1359
01:01:34,949 --> 01:01:35,960
businesses that are

1360
01:01:35,960 --> 01:01:40,320
expanding two of the new businesses are from Denton or in

1361
01:01:40,320 --> 01:01:41,920
Denton and one of the

1362
01:01:41,920 --> 01:01:46,639
expanding businesses is in Denton and TW you folks let us

1363
01:01:46,639 --> 01:01:47,800
know that the

1364
01:01:47,800 --> 01:01:51,099
recipients finished their grant training course on April 17

1365
01:01:51,099 --> 01:01:52,119
th and there will be a

1366
01:01:52,119 --> 01:01:56,719
graduation ceremony in the near future we also provided a

1367
01:01:56,719 --> 01:01:58,039
little bit more

1368
01:01:58,039 --> 01:02:02,010
information about the amphitheater inquiry parks and rec

1369
01:02:02,010 --> 01:02:03,199
staff did confirm

1370
01:02:03,199 --> 01:02:07,050
that they're confirmed that an amphitheater is not on any

1371
01:02:07,050 --> 01:02:07,679
of their

1372
01:02:07,679 --> 01:02:12,590
capital project lists at this point in time I did confirm

1373
01:02:12,590 --> 01:02:14,239
with razor ranch with

1374
01:02:14,239 --> 01:02:17,579
red development that they are still planning a central

1375
01:02:17,579 --> 01:02:18,800
courtyard with the

1376
01:02:18,800 --> 01:02:22,099
performance stage and seating and I included a couple

1377
01:02:22,099 --> 01:02:23,880
pictures in there from

1378
01:02:23,880 --> 01:02:28,619
one of their similar developments in Phoenix that shows a

1379
01:02:28,619 --> 01:02:29,960
concert being

1380
01:02:29,960 --> 01:02:35,289
performed at that performance venue we also included the

1381
01:02:35,289 --> 01:02:37,599
March Stan report the

1382
01:02:37,599 --> 01:02:43,539
April request for information summary from the city as well

1383
01:02:43,539 --> 01:02:44,719
as a year-to-date

1384
01:02:44,719 --> 01:02:48,639
summary of the city's direct leads that was requested last

1385
01:02:48,639 --> 01:02:49,639
time which the

1386
01:02:49,639 --> 01:02:54,639
summary list and we'll add to that as new leads come in to

1387
01:02:54,639 --> 01:02:56,000
us directly and

1388
01:02:56,000 --> 01:03:00,369
then there's also the May 2018 chamber activity report as

1389
01:03:00,369 --> 01:03:03,039
exhibit five so would

1390
01:03:03,039 --> 01:03:06,480
be glad to answer any questions if anybody has any about

1391
01:03:06,480 --> 01:03:08,400
those materials

1392
01:03:08,400 --> 01:03:28,239
on the great business leader for yes we will add it we're

1393
01:03:28,239 --> 01:03:30,480
working with the in-house

1394
01:03:30,480 --> 01:03:35,550
system that we developed to track and monitor our leads as

1395
01:03:35,550 --> 01:03:36,559
well as our

1396
01:03:36,559 --> 01:03:39,980
performance metrics for the city so I appreciate everybody

1397
01:03:39,980 --> 01:03:41,159
's patience with us

1398
01:03:41,159 --> 01:03:43,840
as we try to pull out reports and make sure that we're

1399
01:03:43,840 --> 01:03:45,320
inputting information in

1400
01:03:45,320 --> 01:03:49,039
a way that is going to allow us to get them out so we will

1401
01:03:49,039 --> 01:03:51,159
make that tweak

1402
01:04:06,559 --> 01:04:11,079
bigger percentage of it is coming from residential versus

1403
01:04:11,079 --> 01:04:15,239
commercial and industrial and the

1404
01:04:15,239 --> 01:04:19,940
sustainability of continued residential growth without an

1405
01:04:19,940 --> 01:04:21,639
influx of industrial

1406
01:04:21,639 --> 01:04:24,860
and commercial growth we're not going to be able to grow

1407
01:04:24,860 --> 01:04:27,199
our jobs base and our

1408
01:04:27,199 --> 01:04:31,539
wage base the way we need to so that's one of the focuses I

1409
01:04:31,539 --> 01:04:33,440
think this group has to really

1410
01:04:33,440 --> 01:04:38,000
hammer on how do we get that that level of good growth in

1411
01:04:38,000 --> 01:04:39,599
the city so that we

1412
01:04:39,599 --> 01:04:44,260
can flip that tax base around and you're looking at page 14

1413
01:04:44,260 --> 01:04:45,960
1 of the stand report

1414
01:04:45,960 --> 01:04:49,750
the commercial growth the valuation trends okay just for

1415
01:04:49,750 --> 01:04:50,320
everybody's

1416
01:04:50,320 --> 01:04:56,789
information I agree with that I think some of that I think

1417
01:04:56,789 --> 01:04:57,599
that numbers

1418
01:04:57,599 --> 01:05:00,369
getting wider because of the apartment growth which is in

1419
01:05:00,369 --> 01:05:01,760
the residential which

1420
01:05:01,760 --> 01:05:04,679
we still don't want to rely on apartments to pay all of our

1421
01:05:04,679 --> 01:05:05,920
taxes good

1422
01:05:05,920 --> 01:05:13,880
point the apartment owners makes apartment rents higher I

1423
01:05:13,880 --> 01:05:15,159
think we got

1424
01:05:15,159 --> 01:05:21,920
somehow reverse some of the thinking in within the city

1425
01:05:21,920 --> 01:05:24,559
itself though too I hear

1426
01:05:24,559 --> 01:05:27,900
a lot of people talking about commercial development and if

1427
01:05:27,900 --> 01:05:29,239
we build houses we'll

1428
01:05:29,239 --> 01:05:32,380
get more development but you're not getting the level of

1429
01:05:32,380 --> 01:05:33,519
job growth that you

1430
01:05:33,519 --> 01:05:37,280
need at the correct wage rate commercial development is not

1431
01:05:37,280 --> 01:05:38,280
going to pay what you

1432
01:05:38,280 --> 01:05:42,960
really need to be paid you're going to end up with a ten to

1433
01:05:42,960 --> 01:05:43,599
twelve dollar an

1434
01:05:43,599 --> 01:05:45,880
hour job

1435
01:05:53,440 --> 01:06:02,800
at one time we had a number of quasi dormitories

1436
01:06:03,480 --> 01:06:11,400
refrains that apartments disguised as dormitories which

1437
01:06:11,400 --> 01:06:13,639
were escaping the

1438
01:06:13,639 --> 01:06:18,179
taxation because they were dormitories well what happens is

1439
01:06:18,179 --> 01:06:18,840
is you have a

1440
01:06:18,840 --> 01:06:21,860
private developer come in and develop and build it and then

1441
01:06:21,860 --> 01:06:22,599
the university

1442
01:06:22,599 --> 01:06:28,400
purchases well as I said apartments disguises dormitories

1443
01:06:28,400 --> 01:06:29,960
and so you lose the

1444
01:06:29,960 --> 01:06:33,760
tax base on that but you have the number of services that

1445
01:06:33,760 --> 01:06:34,599
are still you know in

1446
01:06:34,599 --> 01:06:41,099
demand there and so you know to me that's a challenge you

1447
01:06:41,099 --> 01:06:42,079
know where you

1448
01:06:42,079 --> 01:06:46,199
have all the services that are demanded but there's no tax

1449
01:06:46,199 --> 01:06:47,880
base there and then

1450
01:06:47,880 --> 01:06:52,980
to your point Jim you know I just appreciate you kind of

1451
01:06:52,980 --> 01:06:54,079
sounding the

1452
01:06:54,079 --> 01:06:56,789
trumpet again that we really have to do a better job of

1453
01:06:56,789 --> 01:06:58,239
making sure that we're

1454
01:06:58,239 --> 01:07:03,179
attracting and focusing on businesses that will come and

1455
01:07:03,179 --> 01:07:04,360
make an impact here

1456
01:07:04,360 --> 01:07:06,760
in the community

1457
01:07:10,480 --> 01:07:17,000
anything else anybody have any items up for agenda for the

1458
01:07:17,000 --> 01:07:17,760
next meeting which is

1459
01:07:17,760 --> 01:07:24,239
in June I will not be in town

1460
01:07:47,760 --> 01:07:55,940
I'll be at a conference I should be here I should be here I

1461
01:07:55,940 --> 01:07:56,639
'll let everyone know

1462
01:07:56,639 --> 01:08:06,039
today I'll find out everybody notice all right we'll call

1463
01:08:06,039 --> 01:08:07,199
this meeting adjourned

1464
01:08:07,199 --> 01:08:10,719
thanks for being here

1465
01:08:18,359 --> 01:08:20,399
you

1466
01:08:47,960 --> 01:08:50,020
you

1467
01:09:17,880 --> 01:09:19,920
you