WEBVTT 00:00:00.000 --> 00:00:10.519 All right good morning I'm Marty Rivers chairman of the 00:00:10.519 --> 00:00:11.039 Economic Development 00:00:11.039 --> 00:00:15.160 Partnership Board. We do have a quorum and I will now call 00:00:15.160 --> 00:00:16.039 the work session to 00:00:16.039 --> 00:00:20.519 order at 1102 a.m. our first order of business we're going 00:00:20.519 --> 00:00:21.160 to go a little bit 00:00:21.160 --> 00:00:25.600 out of order. We have George Morrow here from the who's a 00:00:25.600 --> 00:00:27.640 general manager of DME 00:00:27.640 --> 00:00:33.719 and we're gonna go ahead and skip to item EDP 18-032 to 00:00:33.719 --> 00:00:34.840 have a report 00:00:34.840 --> 00:00:37.909 and discussion regarding the Denton renewable resource plan 00:00:37.909 --> 00:00:38.640 and the Denton 00:00:38.640 --> 00:00:43.090 Energy Center so welcome George. Thank you Mr. Chairman and 00:00:43.090 --> 00:00:44.200 thank you for letting 00:00:44.200 --> 00:00:47.810 us move up in the agenda today so I'm gonna get Chris back 00:00:47.810 --> 00:00:50.399 to work. Chris 00:00:50.399 --> 00:00:54.880 Lutrix here he's our Denton Energy Center project manager 00:00:54.880 --> 00:00:56.320 and he provided a few 00:00:56.320 --> 00:00:59.280 slides for my presentation so I thought why don't we just 00:00:59.280 --> 00:01:00.719 get Chris to come by 00:01:00.719 --> 00:01:08.219 and and say a few words to you. Why do I have this up here? 00:01:08.219 --> 00:01:11.400 Let's take this off. 00:01:21.519 --> 00:01:28.519 Technical difficulties guys you ever had those before? 00:01:28.519 --> 00:01:28.719 Never. Councilmember? 00:01:30.599 --> 00:01:34.079 Yeah last night the projector was not working so we're 00:01:34.079 --> 00:01:35.439 already ahead of the 00:01:35.439 --> 00:01:39.799 game today. We have the projector working. I'm gonna go to 00:01:39.799 --> 00:01:43.879 your your desk. 00:01:43.879 --> 00:01:52.040 You have my presentation on here right? I do. And it will 00:01:52.040 --> 00:01:52.319 be down here. 00:01:52.319 --> 00:01:55.560 You have a lot of presentations here. 00:02:05.480 --> 00:02:11.599 That saves me from having to go into this thing down here. 00:02:13.879 --> 00:02:27.979 So two big initiatives we have going on in the city Denton 00:02:27.979 --> 00:02:28.479 Energy Center I 00:02:28.479 --> 00:02:33.020 mentioned that and I mentioned Chris also our renewable 00:02:33.020 --> 00:02:35.039 energy plan so I 00:02:35.039 --> 00:02:37.969 wanted to touch base on those two topics knowing you're 00:02:37.969 --> 00:02:39.000 interested in what's 00:02:39.000 --> 00:03:00.300 going on in the community. Okay everybody know about DME? 00:03:00.300 --> 00:03:01.080 Probably more than I do. 00:03:01.080 --> 00:03:09.849 Thank you. So I've been general manager here since late 00:03:09.849 --> 00:03:11.280 November. It's been quite 00:03:11.280 --> 00:03:14.370 an interesting process learning about the community. I grew 00:03:14.370 --> 00:03:15.560 up in West Texas. I 00:03:15.560 --> 00:03:19.400 spent about 25 years in El Paso, picked up a couple of 00:03:19.400 --> 00:03:20.479 degrees and then 00:03:20.479 --> 00:03:24.620 moved around a little bit. I grew up as a military brat so 00:03:24.620 --> 00:03:25.719 I kind of got used to 00:03:25.719 --> 00:03:28.889 packing and moving and cleaning and unpacking and all that 00:03:28.889 --> 00:03:29.840 type of stuff so 00:03:29.840 --> 00:03:33.370 I've been in the electric utility business as of next week 00:03:33.370 --> 00:03:34.319 will be exactly 00:03:34.319 --> 00:03:37.439 40 years. I've been running municipal electric utilities 00:03:37.439 --> 00:03:40.039 for 24 years and it's 00:03:40.039 --> 00:03:45.770 been a great time and a great career for me and started 00:03:45.770 --> 00:03:47.319 coming out to this area 00:03:47.319 --> 00:03:51.800 to visit my mom. My mom was and sister moved out from 00:03:51.800 --> 00:03:53.439 Southern California to 00:03:53.439 --> 00:03:57.050 McKinney and I came out to visit help her with her medical 00:03:57.050 --> 00:03:58.500 things. I'd come out 00:03:58.500 --> 00:04:01.050 take her to some appointments and visit and I said you know 00:04:01.050 --> 00:04:01.719 what this is a 00:04:01.719 --> 00:04:06.060 beautiful beautiful area out here in North Texas. So I 00:04:06.060 --> 00:04:08.360 ended up wanting to 00:04:08.360 --> 00:04:10.860 ended up buying a house. I said I'm gonna come here someday 00:04:10.860 --> 00:04:12.360 and live and lo and 00:04:12.360 --> 00:04:15.120 behold Denton was looking for a general manager. I saw the 00:04:15.120 --> 00:04:16.399 advertisement in our 00:04:16.399 --> 00:04:19.839 industry publication and threw my hat in the ring and voila 00:04:19.839 --> 00:04:21.360 here I am and again 00:04:21.360 --> 00:04:25.970 I'm tickled to death to be here. There's lots of good 00:04:25.970 --> 00:04:27.680 things going on so there 00:04:27.680 --> 00:04:32.490 hasn't been a too much of a sleepy period for me so far. So 00:04:32.490 --> 00:04:33.399 we started 00:04:33.399 --> 00:04:38.000 service at DME in 1905. We've got 53,000 electric customers 00:04:38.000 --> 00:04:39.279 , pretty large service 00:04:39.279 --> 00:04:42.350 area about a hundred square miles, lots of transmission 00:04:42.350 --> 00:04:43.639 lines and sub stations 00:04:43.639 --> 00:04:48.600 to serve our customers as efficiently as possible including 00:04:48.600 --> 00:04:49.639 new economic 00:04:49.639 --> 00:04:54.110 development. I think that's one of one of DME strengths. So 00:04:54.110 --> 00:04:55.519 the big project before 00:04:55.519 --> 00:05:00.209 us, largest capital project I think in Denton's history is 00:05:00.209 --> 00:05:00.920 the Denton Energy 00:05:00.920 --> 00:05:04.550 Center. Here's a little overhead view of the project and 00:05:04.550 --> 00:05:05.639 Chris I want to take 00:05:05.639 --> 00:05:13.550 your excitement. Yeah so we'll start off here with a 00:05:13.550 --> 00:05:15.399 picture. This facility is 00:05:15.399 --> 00:05:19.879 located west of the Dent Regional Airport just south of Jim 00:05:19.879 --> 00:05:21.439 Crystal Road. It sits 00:05:21.439 --> 00:05:25.420 about a half a mile off the road and here's a drone footage 00:05:25.420 --> 00:05:26.319 from the 00:05:26.319 --> 00:05:30.170 City of Denton's IT department. So we took it out to try to 00:05:30.170 --> 00:05:31.160 see what this thing 00:05:31.160 --> 00:05:35.139 looks like from from an aerial view. So to kind of see my 00:05:35.139 --> 00:05:36.920 mouse here so as you 00:05:36.920 --> 00:05:41.509 see back here is the the new Jim Crystal substation. That's 00:05:41.509 --> 00:05:42.319 a very modern 00:05:42.319 --> 00:05:46.389 substation and that's the the power plant's connection to 00:05:46.389 --> 00:05:48.199 the Ercock grid. So 00:05:48.199 --> 00:05:51.720 pretty hard to see but in the background you'll see some 00:05:51.720 --> 00:05:52.759 some high voltage power 00:05:52.759 --> 00:05:55.470 lines running out here. That's the connection point to the 00:05:55.470 --> 00:05:57.040 Ercock grid and 00:05:57.040 --> 00:06:00.360 as far as the layout of the plant goes it's symmetrical. 00:06:00.360 --> 00:06:01.839 The center of the plan 00:06:01.839 --> 00:06:05.139 is called the core. That's where the control room is, some 00:06:05.139 --> 00:06:05.839 maintenance rooms, 00:06:05.839 --> 00:06:10.220 some the electrical components of the plant are or in the 00:06:10.220 --> 00:06:11.519 center and then 00:06:11.519 --> 00:06:15.199 there's two engine halls, a south hall and a north hall. 00:06:15.199 --> 00:06:17.000 Each has six engines in it 00:06:17.000 --> 00:06:20.410 and then towards the the back of the plant the emissions 00:06:20.410 --> 00:06:21.519 control systems 00:06:21.519 --> 00:06:25.800 come first, the stacks. These things are basically a very 00:06:25.800 --> 00:06:28.040 large engine, gas engine 00:06:28.040 --> 00:06:32.310 so they have radiators and they also have mufflers so 00:06:32.310 --> 00:06:33.759 inside of this white 00:06:33.759 --> 00:06:38.019 shrouded area are actually the mufflers. At this scope they 00:06:38.019 --> 00:06:39.240 're called silencers 00:06:39.240 --> 00:06:42.670 and then the plant on the backside here is a radiator. So 00:06:42.670 --> 00:06:43.959 he uses a closed loop 00:06:43.959 --> 00:06:47.579 cooling system which means that much similar to your 00:06:47.579 --> 00:06:49.720 automobile you put water 00:06:49.720 --> 00:06:52.240 in it it's circulated through to cold the engines out 00:06:52.240 --> 00:06:53.680 through the radiator and 00:06:53.680 --> 00:06:57.040 the benefit of this is this plant uses very little water so 00:06:57.040 --> 00:06:57.959 once you get the 00:06:57.959 --> 00:07:02.589 system filled up its makeup water is about 10 to 20 gallons 00:07:02.589 --> 00:07:04.360 a week so it's 00:07:04.360 --> 00:07:09.319 very water conscious. So just some some facts about the 00:07:09.319 --> 00:07:10.120 Denton Energy Center as 00:07:10.120 --> 00:07:14.120 George stated it's the city's largest capital improvement 00:07:14.120 --> 00:07:14.720 project. 00:07:14.720 --> 00:07:19.709 Construction commenced in October 2016 and it took us about 00:07:19.709 --> 00:07:21.120 18 months to get 00:07:21.120 --> 00:07:25.079 to get everything done. Yes sir. Your name again is? Chris 00:07:25.079 --> 00:07:26.560 Lutrik. How do you 00:07:26.560 --> 00:07:30.839 spell that? L-U-T-R-I-C-K. Okay Chris so when you say it's 00:07:30.839 --> 00:07:31.839 the city's largest 00:07:31.839 --> 00:07:35.079 capital improvement how much are we talking about? 225 00:07:35.079 --> 00:07:36.199 million dollars. Thank 00:07:36.199 --> 00:07:39.490 you. Yes sir and just feel free to stop me if you have any 00:07:39.490 --> 00:07:40.920 questions. So 00:07:40.920 --> 00:07:44.699 construction so we broke ground on October of 2016 as I 00:07:44.699 --> 00:07:45.680 said it took about 00:07:45.680 --> 00:07:50.240 18 months to where we are now the plan is is operational we 00:07:50.240 --> 00:07:51.079 're in the testing 00:07:51.079 --> 00:07:55.279 phase we have some site cleanup to totally make the project 00:07:55.279 --> 00:07:56.439 finished and we 00:07:56.439 --> 00:08:00.060 expect to have that done by the by the end of June. The 00:08:00.060 --> 00:08:01.920 plan is powered by 12 00:08:01.920 --> 00:08:06.670 Wardzilla natural gas engines and the plant can deliver up 00:08:06.670 --> 00:08:08.439 to 220 megawatts of 00:08:08.439 --> 00:08:12.050 power so that's ERCOT's rating the actual theoretical 00:08:12.050 --> 00:08:12.959 output of the plan 00:08:12.959 --> 00:08:17.839 is 225 megawatts but the plants load is about 5 megawatts 00:08:17.839 --> 00:08:19.079 so therefore ERCOT 00:08:19.079 --> 00:08:24.220 deducts that off. What's the city's total load? Our peak 00:08:24.220 --> 00:08:30.560 load max I believe is 355 megawatts so for instance I 00:08:30.560 --> 00:08:33.480 looked yesterday yesterday was a pretty warm day in the 00:08:33.480 --> 00:08:34.799 afternoon the city's 00:08:34.799 --> 00:08:39.039 load was about 240 megawatts so and that'll grow over the 00:08:39.039 --> 00:08:40.139 summer with the 00:08:40.139 --> 00:08:43.289 peak coming in August early August is when the city of 00:08:43.289 --> 00:08:44.399 Dayton generally sees 00:08:44.399 --> 00:08:51.000 its peak load but but a key thing about the plan and this 00:08:51.000 --> 00:08:51.799 type of plant is 00:08:51.799 --> 00:08:55.309 you'll notice that in five minutes the plant can deliver 00:08:55.309 --> 00:08:57.019 its full output so 00:08:57.019 --> 00:09:01.259 that is that is not something that that every power plant 00:09:01.259 --> 00:09:02.840 has coal may take days 00:09:02.840 --> 00:09:06.039 to ramp up so they're not using this kind of thing and your 00:09:06.039 --> 00:09:07.120 combined cycle 00:09:07.120 --> 00:09:10.590 plants which use the heat they generate in making 00:09:10.590 --> 00:09:12.879 electricity they take some 00:09:12.879 --> 00:09:17.850 time to get up to speed as well so this plants ability to 00:09:17.850 --> 00:09:19.080 say ERCOT calls and 00:09:19.080 --> 00:09:21.649 says hey we need some power need a hundred megawatts we 00:09:21.649 --> 00:09:22.720 need it in five 00:09:22.720 --> 00:09:26.240 minutes this this plant can do that so it has those 00:09:26.240 --> 00:09:28.120 capabilities so that fact 00:09:28.120 --> 00:09:31.480 coupled or that fact that quick start fact and the ability 00:09:31.480 --> 00:09:32.600 that it's very low 00:09:32.600 --> 00:09:37.789 emissions make the plant suitable to be a financial backup 00:09:37.789 --> 00:09:40.200 to Denton's desire or 00:09:40.200 --> 00:09:42.429 Denton's goal to become a hundred percent renewable so I 00:09:42.429 --> 00:09:43.039 don't want to 00:09:43.039 --> 00:09:45.179 steal any George's thunder but that's that's what he's 00:09:45.179 --> 00:09:46.539 going to talk about but 00:09:46.539 --> 00:09:50.480 that's the physical capabilities of the plant to help 00:09:50.480 --> 00:09:52.120 support that and and 00:09:52.120 --> 00:09:55.070 finally should say that the plant will enter commercial 00:09:55.070 --> 00:09:56.240 operation it shouldn't 00:09:56.240 --> 00:10:00.159 say on July 1st it should say by July 1st so we're kind of 00:10:00.159 --> 00:10:01.000 in our middle 00:10:01.000 --> 00:10:04.179 stages of commissioning we'll get that done we'll get all 00:10:04.179 --> 00:10:05.320 of our documentation 00:10:05.320 --> 00:10:09.419 filed and at that point we'll submit that and then 00:10:09.419 --> 00:10:12.480 commercially be online so 00:10:12.480 --> 00:10:15.379 a couple more pictures for you hopefully you know we'll 00:10:15.379 --> 00:10:17.039 have tours tours will 00:10:17.039 --> 00:10:19.549 come along and everybody can see these here's an actual 00:10:19.549 --> 00:10:20.600 picture of the engine 00:10:20.600 --> 00:10:24.019 hall so what you're seeing here is the world's largest gas 00:10:24.019 --> 00:10:25.159 engine so there are 00:10:25.159 --> 00:10:29.519 18 cylinders they're set up in a V configuration the pist 00:10:29.519 --> 00:10:30.519 ons are about 20 00:10:30.519 --> 00:10:35.429 inches in diameter but basically it's just it's just a big 00:10:35.429 --> 00:10:36.960 a big cruise ship 00:10:36.960 --> 00:10:41.490 engine is one way to look at it and finally I threw this 00:10:41.490 --> 00:10:42.080 picture in there 00:10:42.080 --> 00:10:44.809 just because it has some artistic qualities that I think it 00:10:44.809 --> 00:10:45.519 looks pretty 00:10:45.519 --> 00:10:50.960 good so this is this is what it looks like from the ground 00:10:50.960 --> 00:10:52.720 so any questions 00:10:59.600 --> 00:11:03.610 so upon my arrival in Denton I feel like my role was to see 00:11:03.610 --> 00:11:06.320 this through 00:11:06.320 --> 00:11:10.460 construction we were you know well through the project at 00:11:10.460 --> 00:11:11.200 the time I showed 00:11:11.200 --> 00:11:15.950 up and my role and DME's role going forward is to get the 00:11:15.950 --> 00:11:17.720 most value out of 00:11:17.720 --> 00:11:21.080 this investment so I I'm looking at it from that standpoint 00:11:21.080 --> 00:11:23.200 and that's what our 00:11:23.200 --> 00:11:26.009 intention is we believe that's important now we have a 00:11:26.009 --> 00:11:27.159 number of other resources 00:11:27.159 --> 00:11:32.210 that we provide the load here we have a 30 megawatt around- 00:11:32.210 --> 00:11:34.240 the-clock power 00:11:34.240 --> 00:11:39.769 supply from next era energy resources that has a nexus to 00:11:39.769 --> 00:11:41.600 the wolf ridge wind 00:11:41.600 --> 00:11:46.070 farm though you know we it's not as the wind comes out of 00:11:46.070 --> 00:11:47.159 the plant you know 00:11:47.159 --> 00:11:49.990 next era sort of manages the variability of the wind and 00:11:49.990 --> 00:11:51.200 they give us a flat 00:11:51.200 --> 00:11:54.139 around-the-clock project we paid extra for that back when 00:11:54.139 --> 00:11:55.120 this was contracted 00:11:55.120 --> 00:12:01.019 for in 2009 but the nexus is we received the power at the 00:12:01.019 --> 00:12:02.240 substation right there 00:12:02.240 --> 00:12:05.789 next to the wood next to the farm and the farm came in 00:12:05.789 --> 00:12:07.399 service just when our 00:12:07.399 --> 00:12:11.269 contract started so there's a relationship but it's not a 00:12:11.269 --> 00:12:11.639 pure not a 00:12:11.639 --> 00:12:16.240 pure wind product shows you a couple of photos I snapped 00:12:16.240 --> 00:12:17.879 off of our wall to give 00:12:17.879 --> 00:12:20.769 some graphics something interesting to look at we also have 00:12:20.769 --> 00:12:21.720 a landfill project 00:12:21.720 --> 00:12:25.100 here in Denton out at the landfill site it's about a megaw 00:12:25.100 --> 00:12:26.000 att so pretty 00:12:26.000 --> 00:12:30.960 significant size project that takes no gases from the 00:12:30.960 --> 00:12:33.000 landfill and gathers 00:12:33.000 --> 00:12:35.440 those and puts them through to generate electricity so 00:12:35.440 --> 00:12:36.679 instead of like flaring 00:12:36.679 --> 00:12:39.529 gases or just letting go up in the atmosphere we're 00:12:39.529 --> 00:12:41.440 capturing that that gas 00:12:41.440 --> 00:12:44.090 cleaning it up and putting it through this plant it's 00:12:44.090 --> 00:12:45.120 actually owned by a 00:12:45.120 --> 00:12:48.960 private company a subsidiary I believe of Detroit Edison 00:12:48.960 --> 00:12:50.820 and we contract for 00:12:50.820 --> 00:12:53.700 the energy to make that project happen here locally and it 00:12:53.700 --> 00:12:54.379 has some good 00:12:54.379 --> 00:12:58.750 environmental benefits as I mentioned I'm excited about 00:12:58.750 --> 00:12:59.879 this project came in 00:12:59.879 --> 00:13:03.200 service last month called the Santa Rita wind farm out 00:13:03.200 --> 00:13:06.440 there in West Texas I was 00:13:06.440 --> 00:13:08.500 looking for a graphic there I didn't really have much 00:13:08.500 --> 00:13:09.279 except this is the 00:13:09.279 --> 00:13:13.000 layout of all these wind turbines there's there's a bunch 00:13:13.000 --> 00:13:14.120 of turbines out 00:13:14.120 --> 00:13:17.200 there adding up to there a megawatt and a half so it's 00:13:17.200 --> 00:13:18.480 about a hundred wind 00:13:18.480 --> 00:13:20.809 turbines equaling this hundred and fifty megawatts so it's 00:13:20.809 --> 00:13:21.799 a large power supply 00:13:21.799 --> 00:13:25.940 to us it will be the lowest cost energy product that we 00:13:25.940 --> 00:13:27.080 have in our portfolio 00:13:27.080 --> 00:13:31.500 and it will generate a lot of electricity going forward and 00:13:31.500 --> 00:13:32.080 it's going 00:13:32.080 --> 00:13:36.200 to be good for George we have a question absolutely 00:13:38.200 --> 00:13:42.480 yes I know that in our in our conversations on committee on 00:13:42.480 --> 00:13:42.639 the 00:13:42.639 --> 00:13:47.360 environment and also on council we are actually producing a 00:13:47.360 --> 00:13:48.720 lot more gas than 00:13:48.720 --> 00:13:53.360 we're able to convert and we had talked about maybe adding 00:13:53.360 --> 00:13:54.240 more of these 00:13:54.240 --> 00:13:58.899 generators is that still a conversation that that we're 00:13:58.899 --> 00:14:00.559 having or it's not been 00:14:00.559 --> 00:14:03.850 one that I've been involved in I'll keep my ears open and 00:14:03.850 --> 00:14:04.639 see if there's an 00:14:04.639 --> 00:14:08.740 opportunity to do that the energy is relatively expensive 00:14:08.740 --> 00:14:09.320 here this would be 00:14:09.320 --> 00:14:15.480 our most expensive energy product and and that was you know 00:14:15.480 --> 00:14:17.039 probably fair 00:14:17.039 --> 00:14:20.720 price back when this came online but maybe the next 00:14:20.720 --> 00:14:22.519 generation of landfill 00:14:22.519 --> 00:14:25.539 gas conversion projects could be a little bit cheaper and I 00:14:25.539 --> 00:14:26.360 think we'll look 00:14:26.360 --> 00:14:32.909 at that if that's the case so thank you so that's the wind 00:14:32.909 --> 00:14:34.679 farm and as Chris 00:14:34.679 --> 00:14:38.519 mentioned I'm really pleased to be part of the 00:14:38.519 --> 00:14:40.240 implementation of the Denton 00:14:40.240 --> 00:14:43.850 renewable resource plan which was adopted by City Council 00:14:43.850 --> 00:14:44.879 in February and 00:14:44.879 --> 00:14:48.360 provides that we'll be a hundred percent renewable by 2020 00:14:48.360 --> 00:14:49.480 and what that means is 00:14:49.480 --> 00:14:52.559 if we look at the total electric requirements of our 00:14:52.559 --> 00:14:53.759 customer base for a 00:14:53.759 --> 00:14:57.120 given year that we'll have at least that much renewable 00:14:57.120 --> 00:14:58.600 energy in our portfolio 00:14:58.600 --> 00:15:03.659 that's about 1.5 million megawatt hours and that's what we 00:15:03.659 --> 00:15:05.000 're looking to bring 00:15:05.000 --> 00:15:10.570 online right now we're in the 60 to 65 percent range and we 00:15:10.570 --> 00:15:12.080 're we have plans to 00:15:12.080 --> 00:15:14.860 get that to the hundred percent by by 2020 or as close 00:15:14.860 --> 00:15:16.000 thereafter as possible 00:15:16.000 --> 00:15:18.580 and the other things we have ongoing and one of them I 00:15:18.580 --> 00:15:19.720 mentioned here is the 00:15:19.720 --> 00:15:23.720 acquired additional hundred megawatts of West Texas solar 00:15:23.720 --> 00:15:25.240 and we got that 00:15:25.240 --> 00:15:28.279 approved last night at the City Council so that project 00:15:28.279 --> 00:15:29.600 called Blue Bail solar 00:15:29.600 --> 00:15:36.250 2 scheduled to be online sometime in 2020 and that is a 00:15:36.250 --> 00:15:38.120 very attractively 00:15:38.120 --> 00:15:42.179 priced fixed price product for 15 years we're involved with 00:15:42.179 --> 00:15:42.919 five other 00:15:42.919 --> 00:15:46.269 municipalities at the moment in a second solar RFP and 00:15:46.269 --> 00:15:47.799 looking to pick up as much 00:15:47.799 --> 00:15:50.879 as another hundred and the numbers I've seen so far also 00:15:50.879 --> 00:15:51.600 look very very 00:15:51.600 --> 00:15:55.559 attractive for us and lastly we'll let that kind of fit 00:15:55.559 --> 00:15:57.080 into our portfolio 00:15:57.080 --> 00:16:01.230 we'll be looking to go back out to add some additional 00:16:01.230 --> 00:16:03.000 renewables and that will 00:16:03.000 --> 00:16:05.429 get us basically to the hundred percent want to get those 00:16:05.429 --> 00:16:06.440 under contract right 00:16:06.440 --> 00:16:09.879 now there's some you know incentives to do that you know 00:16:09.879 --> 00:16:11.120 production tax credits 00:16:11.120 --> 00:16:14.190 and investment tax credits at the federal level and the 00:16:14.190 --> 00:16:15.120 market has just 00:16:15.120 --> 00:16:19.639 ripened the market is very very good for this this 00:16:19.639 --> 00:16:22.679 technology right now Gibbons 00:16:22.679 --> 00:16:27.559 Creek Chris mentioned our coal plant it's going to run this 00:16:27.559 --> 00:16:28.559 summer we've got a 00:16:28.559 --> 00:16:30.990 mini I call it a mini energy crisis might actually be 00:16:30.990 --> 00:16:31.919 bigger than a mini 00:16:31.919 --> 00:16:35.389 energy crisis this summer a lot of big power plants in 00:16:35.389 --> 00:16:36.879 Texas have retired in 00:16:36.879 --> 00:16:40.429 the past year have a hard time competing with lesser priced 00:16:40.429 --> 00:16:41.600 natural gas typically 00:16:41.600 --> 00:16:45.480 and even some renewables and that's reduced the reserve 00:16:45.480 --> 00:16:46.759 margin out there in 00:16:46.759 --> 00:16:52.200 aircott to around 10% so prices are starting to rise up on 00:16:52.200 --> 00:16:52.679 the forward 00:16:52.679 --> 00:16:55.649 market kind of like the stock market going forward and we 00:16:55.649 --> 00:16:57.519 're going to see if 00:16:57.519 --> 00:16:59.789 there's going to be any shortages or any issues there they 00:16:59.789 --> 00:17:00.799 're saying be prepared 00:17:00.799 --> 00:17:04.119 and and we're prepared hopefully the Denton Energy Center 00:17:04.119 --> 00:17:04.920 will provide a role 00:17:04.920 --> 00:17:08.839 in providing some extra reliability to the grid this summer 00:17:08.839 --> 00:17:10.599 and and we also 00:17:10.599 --> 00:17:14.480 have our Gibbons Creek project which likely this will be 00:17:14.480 --> 00:17:16.039 the last hurrah for 00:17:16.039 --> 00:17:22.789 that project it's in operation since the early 80s and we 00:17:22.789 --> 00:17:24.240 're looking to divest 00:17:24.240 --> 00:17:28.059 ourselves of that project and retire it and that kind of 00:17:28.059 --> 00:17:29.319 thing so but it is 00:17:29.319 --> 00:17:33.109 running this year could possibly run next year depending on 00:17:33.109 --> 00:17:34.240 the transaction 00:17:34.240 --> 00:17:36.609 that we have involved in what the City Council wants to do 00:17:36.609 --> 00:17:37.359 but right now it 00:17:37.359 --> 00:17:41.410 looks like that we're only committed through September we 00:17:41.410 --> 00:17:42.920 're gonna pay off 00:17:42.920 --> 00:17:49.240 the last tranche of generation debt a little bit later this 00:17:49.240 --> 00:17:50.880 year of 25 million 00:17:50.880 --> 00:17:54.400 dollars so so we'll we'll be able to walk away with at 00:17:54.400 --> 00:17:55.920 least that debt gone 00:17:55.920 --> 00:17:58.230 we have a little bit of internal debt that we did for some 00:17:58.230 --> 00:17:58.960 environmental 00:17:58.960 --> 00:18:02.650 controls and so forth and we'll be looking to try to get 00:18:02.650 --> 00:18:03.799 that paid off as 00:18:03.799 --> 00:18:06.660 soon as possible as soon as the as we're able to handle 00:18:06.660 --> 00:18:08.319 that from a financial and 00:18:08.319 --> 00:18:12.480 a callable standpoint 00:18:18.240 --> 00:18:22.440 does the city own that plant no it's a it's a joint venture 00:18:22.440 --> 00:18:24.039 of us and three 00:18:24.039 --> 00:18:28.259 other cities we formed a joint action agency called Texas 00:18:28.259 --> 00:18:29.559 municipal power 00:18:29.559 --> 00:18:33.880 agency about the same time as this plant was conceived and 00:18:33.880 --> 00:18:35.000 so they they actually 00:18:35.000 --> 00:18:38.289 manage it and operate it for us but we're responsible for 00:18:38.289 --> 00:18:38.720 all our 00:18:38.720 --> 00:18:41.990 proportional share of the project it's a little over 400 00:18:41.990 --> 00:18:43.119 megawatts our piece 00:18:43.119 --> 00:18:46.920 right now is 21% and 00:18:49.920 --> 00:18:54.170 yeah so as of September 1st Greenville will walk away from 00:18:54.170 --> 00:18:55.200 the project we'll 00:18:55.200 --> 00:18:57.710 run it for one more month and we've the other three of us 00:18:57.710 --> 00:18:58.599 are sharing their 00:18:58.599 --> 00:19:01.930 piece which ought to be pretty attractive we think this 00:19:01.930 --> 00:19:02.599 summer based on 00:19:02.599 --> 00:19:05.670 our forward assessment of the power market that could be 00:19:05.670 --> 00:19:06.640 worth quite a bit 00:19:06.640 --> 00:19:09.559 to us the variable cost of the plan you mentioned the debt 00:19:09.559 --> 00:19:10.200 piece but the 00:19:10.200 --> 00:19:15.269 variable cost is extremely low it's a and so that will make 00:19:15.269 --> 00:19:16.599 it you know 00:19:16.599 --> 00:19:20.009 generate some good revenues for this summer which I'm 00:19:20.009 --> 00:19:21.279 looking forward to 00:19:21.279 --> 00:19:26.079 questions on any of this George I do have a question please 00:19:26.079 --> 00:19:27.039 sir John Baines 00:19:27.039 --> 00:19:34.960 with the black chamber hey John the with the renewable plan 00:19:34.960 --> 00:19:39.200 how how well how well 00:19:39.200 --> 00:19:43.299 has the public understood the magnitude of this plan is it 00:19:43.299 --> 00:19:45.240 well understood 00:19:45.240 --> 00:19:49.910 within this community very well I've heard be honest I've 00:19:49.910 --> 00:19:50.880 heard nothing 00:19:50.880 --> 00:19:54.799 negative it seems like folks believe this is a very 00:19:54.799 --> 00:19:57.000 positive direction for 00:19:57.000 --> 00:20:00.480 the utility I came in with my I call it eyes wide open 00:20:00.480 --> 00:20:03.480 ready to give my input 00:20:03.480 --> 00:20:07.910 and good or bad if it didn't make sense I was gonna say 00:20:07.910 --> 00:20:09.000 that or if it did make 00:20:09.000 --> 00:20:13.079 sense I was gonna get on board the the train and everything 00:20:13.079 --> 00:20:14.079 to me it makes 00:20:14.079 --> 00:20:17.750 total sense the reason I ask is because most of us don't 00:20:17.750 --> 00:20:19.160 really think about 00:20:19.160 --> 00:20:23.390 energy until we don't have it until it's you have a brown 00:20:23.390 --> 00:20:25.119 out or a black out of 00:20:25.119 --> 00:20:28.910 some sort so I just didn't know if the community at large 00:20:28.910 --> 00:20:30.440 was appreciating the 00:20:30.440 --> 00:20:33.400 magnitude of this project it's a good point in our end that 00:20:33.400 --> 00:20:34.160 we will be fine 00:20:34.160 --> 00:20:37.759 this some do and some don't some some all they care about 00:20:37.759 --> 00:20:40.920 is they care about 00:20:40.920 --> 00:20:43.180 that elect that electric bill and now it's coming 00:20:43.180 --> 00:20:44.480 electronically so you may 00:20:44.480 --> 00:20:48.720 not actually not even look at the bill anymore so yeah 00:20:48.720 --> 00:20:49.599 whether the lights are on 00:20:49.599 --> 00:20:53.359 or off is like the big deal right and we had a nice 00:20:53.359 --> 00:20:54.559 presentation yesterday I was 00:20:54.559 --> 00:20:58.000 gratified by the response of the council for presentation 00:20:58.000 --> 00:20:59.319 we made our reliability 00:20:59.319 --> 00:21:02.319 we also did it for the public utility board the day before 00:21:02.319 --> 00:21:03.559 talking about all 00:21:03.559 --> 00:21:06.599 the things you know we we dive in deeply to looking at 00:21:06.599 --> 00:21:08.680 reliability by substation 00:21:08.680 --> 00:21:12.839 and by circuit and by cause you know and we've identified 00:21:12.839 --> 00:21:14.200 squirrels the critters 00:21:14.200 --> 00:21:17.480 is the number one cause believe it or not for outages and I 00:21:17.480 --> 00:21:18.880 had all sorts of 00:21:18.880 --> 00:21:23.359 great squirrel pictures that I ended up having to take out 00:21:23.359 --> 00:21:25.799 I think we had a 00:21:25.799 --> 00:21:29.309 squirrel behind bars or something even you know so so we 00:21:29.309 --> 00:21:30.839 have a lot of work 00:21:30.839 --> 00:21:33.359 we're doing to improve reliability because we know how bad 00:21:33.359 --> 00:21:33.920 it is when you 00:21:33.920 --> 00:21:37.549 when my power is out man alive there's so many things that 00:21:37.549 --> 00:21:38.960 aren't happening that 00:21:38.960 --> 00:21:41.720 need to be happening and we're waiting and we're watching 00:21:41.720 --> 00:21:42.720 and and you know the 00:21:42.720 --> 00:21:45.319 temperatures rising in our place if it's summertime or 00:21:45.319 --> 00:21:46.559 getting colder it and the 00:21:46.559 --> 00:21:49.470 night we can't charge this and our refrigerator and our 00:21:49.470 --> 00:21:50.480 television on our 00:21:50.480 --> 00:21:55.210 internet so our folks do recognize that and we have ninety 00:21:55.210 --> 00:21:56.400 nine point nine nine 00:21:56.400 --> 00:22:00.279 eight percent reliability that's when you evaluate the 00:22:00.279 --> 00:22:02.119 customers by time but 00:22:02.119 --> 00:22:04.730 even so it's still a problem when we have an outage and I 00:22:04.730 --> 00:22:06.119 've been gratified if 00:22:06.119 --> 00:22:09.349 I could just speak one more comment I've been gratified by 00:22:09.349 --> 00:22:10.680 one how few an outages 00:22:10.680 --> 00:22:13.759 that we have here in Denton in my time I'm not getting woke 00:22:13.759 --> 00:22:14.720 up and out of bed 00:22:14.720 --> 00:22:18.720 middle of the night many places I've been I do get woke up 00:22:18.720 --> 00:22:19.460 quite frequently at 00:22:19.460 --> 00:22:24.059 night and also how quick and responsive our crews are they 00:22:24.059 --> 00:22:25.000 know their job I 00:22:25.000 --> 00:22:28.880 don't have to you know trounce around yelling and screaming 00:22:28.880 --> 00:22:29.319 or doing anything 00:22:29.319 --> 00:22:32.240 like that they they're on it they're hopping to it and 00:22:32.240 --> 00:22:33.440 almost by the time they 00:22:33.440 --> 00:22:36.140 get the message out that there's an issue they figured it 00:22:36.140 --> 00:22:37.119 out and they're 00:22:37.119 --> 00:22:39.440 resolving it so 00:22:41.440 --> 00:22:45.599 very good about responding in fact if we have an issue we 00:22:45.599 --> 00:22:46.519 generally get a phone 00:22:46.519 --> 00:22:50.690 call within a couple of minutes with an explanation of what 00:22:50.690 --> 00:22:51.640 's going on how long 00:22:51.640 --> 00:22:57.680 it's gonna be Jim who you with just okay yep one of our 00:22:57.680 --> 00:22:59.240 best customers 00:22:59.240 --> 00:23:06.119 I learned that really quickly are they our best 00:23:06.119 --> 00:23:08.119 Keely has a question 00:23:12.119 --> 00:23:16.059 usually because you mentioned the plan and people don't 00:23:16.059 --> 00:23:17.000 really care till their 00:23:17.000 --> 00:23:21.000 powers out but to that point the generation aspect of it 00:23:21.000 --> 00:23:21.880 isn't when 00:23:21.880 --> 00:23:25.039 someone loses power because we have air caught to back that 00:23:25.039 --> 00:23:26.039 energy up it's on 00:23:26.039 --> 00:23:29.880 the distribution side it's because of the the squirrels and 00:23:29.880 --> 00:23:30.960 the lines and the 00:23:30.960 --> 00:23:35.289 poles that that is when you're gonna experience an outage 00:23:35.289 --> 00:23:36.680 in your house it's 00:23:36.680 --> 00:23:40.319 not gonna be because we don't have enough megawatts of 00:23:40.319 --> 00:23:41.720 energy coming into 00:23:41.720 --> 00:23:45.640 our city very good point extremely rare in the history of 00:23:45.640 --> 00:23:46.599 the art business that 00:23:46.599 --> 00:23:49.329 we don't have enough electrons from a power supply 00:23:49.329 --> 00:23:51.279 standpoint however this 00:23:51.279 --> 00:23:53.619 summer that you know if there is an issue that actually 00:23:53.619 --> 00:23:54.480 could be the issue 00:23:54.480 --> 00:23:58.220 if I want two units drop off line we lose that reserve 00:23:58.220 --> 00:23:59.759 margin then we may not 00:23:59.759 --> 00:24:02.740 have enough electrons so it's like I say a very very rare 00:24:02.740 --> 00:24:04.000 case and we'll have to 00:24:04.000 --> 00:24:07.630 go into some kind of a load shedding mode where we you know 00:24:07.630 --> 00:24:08.839 we drop a circuit 00:24:08.839 --> 00:24:13.109 for 15 or 20 or 30 minutes and put it back on before that 00:24:13.109 --> 00:24:14.480 gets too hot and then 00:24:14.480 --> 00:24:16.619 get it and drop another circuit we don't want to have to do 00:24:16.619 --> 00:24:17.519 that we're hoping we 00:24:17.519 --> 00:24:22.589 don't George I was on PUB for about eight years okay and I 00:24:22.589 --> 00:24:24.240 remember some of 00:24:24.240 --> 00:24:30.410 our spirited discussions about as the city grows and the 00:24:30.410 --> 00:24:32.319 demand for electricity 00:24:32.319 --> 00:24:36.009 grows I believe that was one of the things that caused this 00:24:36.009 --> 00:24:36.880 particular 00:24:36.880 --> 00:24:40.880 project to be put on the map is that as we're getting more 00:24:40.880 --> 00:24:42.440 houses more plants 00:24:42.440 --> 00:24:46.269 etc etc the demand for energy was increasing and so without 00:24:46.269 --> 00:24:47.160 this I think 00:24:47.160 --> 00:24:50.960 we'd really be in trouble yeah good point or or alternative 00:24:50.960 --> 00:24:51.920 ly for relying on 00:24:51.920 --> 00:24:56.329 other people to build power plants for us then one we haven 00:24:56.329 --> 00:24:57.799 't done our part to 00:24:57.799 --> 00:25:01.220 preserve the environment potentially and two we're subject 00:25:01.220 --> 00:25:02.680 to quite a bit higher 00:25:02.680 --> 00:25:05.829 prices so you know just the ballpark maybe the market 00:25:05.829 --> 00:25:07.359 prices are twice what it 00:25:07.359 --> 00:25:10.279 costs us for these renewable projects we would pay that 00:25:10.279 --> 00:25:11.420 much instead of this so 00:25:11.420 --> 00:25:14.839 we're we're controlling our own destiny price wise also 00:25:14.839 --> 00:25:15.759 that's very good point 00:25:15.759 --> 00:25:20.509 and as a kind of a bowl on this I think we've got to do 00:25:20.509 --> 00:25:22.599 maybe a better job of 00:25:22.599 --> 00:25:26.470 letting people know how good we have it here you know and 00:25:26.470 --> 00:25:28.519 they could be worse you 00:25:28.519 --> 00:25:34.910 know if we didn't have this kind of operation in place and 00:25:34.910 --> 00:25:37.759 that if we were 00:25:37.759 --> 00:25:41.799 subject to the volatility of the market you know pricing 00:25:41.799 --> 00:25:43.240 could be quite a bit 00:25:43.240 --> 00:25:51.160 different every month if you looked at you feel well I love 00:25:51.160 --> 00:25:51.960 those thoughts I'm 00:25:51.960 --> 00:25:55.730 a true believer of local control of public power you know 00:25:55.730 --> 00:25:56.839 this utilities 00:25:56.839 --> 00:26:00.079 technically owned by the city and by the citizens and it's 00:26:00.079 --> 00:26:01.359 controlled and managed 00:26:01.359 --> 00:26:04.779 locally you know you can pick up the phone and talk to the 00:26:04.779 --> 00:26:06.240 big boss at the 00:26:06.240 --> 00:26:09.759 electric company you can't do that with a private company 00:26:09.759 --> 00:26:11.079 if you were to have a 00:26:11.079 --> 00:26:13.809 private supplier for instance or possibly even one of these 00:26:13.809 --> 00:26:14.480 competitive 00:26:14.480 --> 00:26:16.880 suppliers that are out there if you live outside of Denton 00:26:16.880 --> 00:26:17.640 you know good luck 00:26:17.640 --> 00:26:20.220 trying to get a hold of a of somebody that knows something 00:26:20.220 --> 00:26:21.119 at those agencies 00:26:21.119 --> 00:26:23.950 so I worked ten years in the private sector 30 years now in 00:26:23.950 --> 00:26:24.880 the public the 00:26:24.880 --> 00:26:27.359 public is the place to be and where you can make a 00:26:27.359 --> 00:26:28.880 difference you can say hey I 00:26:28.880 --> 00:26:32.359 want these kind of streetlights I want underground overhead 00:26:32.359 --> 00:26:33.400 I'm willing to pay 00:26:33.400 --> 00:26:35.599 for it and all those kinds of things but I can make those 00:26:35.599 --> 00:26:36.599 decisions I don't have 00:26:36.599 --> 00:26:41.240 that let a commission hundreds of miles away making those 00:26:41.240 --> 00:26:42.680 for us and or or some 00:26:42.680 --> 00:26:47.109 folks in an executive suite high up in some tall buildings 00:26:47.109 --> 00:26:48.359 so so I it's it's 00:26:48.359 --> 00:26:51.710 great to be part of that 2,000 member public power 00:26:51.710 --> 00:26:52.980 community in the United 00:26:52.980 --> 00:26:57.309 States and about 78 I think in Texas we're one of those one 00:26:57.309 --> 00:26:58.319 of the larger 00:26:58.319 --> 00:27:02.279 ones in the country and in the state so George on the we 00:27:02.279 --> 00:27:03.559 retire the Gibbons 00:27:03.559 --> 00:27:08.059 Creek plant that didn't energy center will pick up the 00:27:08.059 --> 00:27:08.599 slack 00:27:12.039 --> 00:27:15.579 in the short run we'll have a little more open position we 00:27:15.579 --> 00:27:16.440 've had a lot of 00:27:16.440 --> 00:27:19.690 open position in the past and we're which means we did a 00:27:19.690 --> 00:27:20.559 lot of market 00:27:20.559 --> 00:27:23.210 purchases and which was fine because the market prices were 00:27:23.210 --> 00:27:24.039 declining but they're 00:27:24.039 --> 00:27:27.440 moving back up dramatically the new renewables will fill 00:27:27.440 --> 00:27:28.619 that gap and we'll 00:27:28.619 --> 00:27:31.849 go back and buy some from the market in the short run 00:27:31.849 --> 00:27:33.539 before the renewables all 00:27:33.539 --> 00:27:36.319 come into play and the Denton Energy Center will be a 00:27:36.319 --> 00:27:37.519 revenue source in and 00:27:37.519 --> 00:27:40.799 of itself so it kind of offsets our costs the way the 00:27:40.799 --> 00:27:42.319 market works today you 00:27:42.319 --> 00:27:45.609 buy all your load so everything people use in Denton we go 00:27:45.609 --> 00:27:46.680 and purchase from 00:27:46.680 --> 00:27:50.309 this so-called market out there and then we sell everything 00:27:50.309 --> 00:27:51.640 that we own into that 00:27:51.640 --> 00:27:55.160 and it results in a credit basically against what we pay 00:27:55.160 --> 00:27:56.480 for our load that's 00:27:56.480 --> 00:28:01.759 the competitive market in Texas and so yes this will be a 00:28:01.759 --> 00:28:03.880 hedge toward that and 00:28:03.880 --> 00:28:07.640 the renewables plug a hole that we've had for a long time 00:28:07.640 --> 00:28:09.079 one of the reasons 00:28:09.079 --> 00:28:11.980 renewables are not adopted as quickly and as much as 00:28:11.980 --> 00:28:13.119 possible in other 00:28:13.119 --> 00:28:17.400 jurisdictions is because they are stranding assets they 00:28:17.400 --> 00:28:18.319 have power plants 00:28:18.319 --> 00:28:21.039 they've already built some of them not as old as the Gib 00:28:21.039 --> 00:28:21.920 bons Creek maybe a 00:28:21.920 --> 00:28:24.470 little bit newer that they don't want to retire and say hey 00:28:24.470 --> 00:28:25.640 I got all this cost 00:28:25.640 --> 00:28:28.640 still on my books so they continue to operate those and 00:28:28.640 --> 00:28:29.400 operate those that's 00:28:29.400 --> 00:28:32.930 it's an economic dislocation to do renewables fortunately 00:28:32.930 --> 00:28:33.400 we were in a 00:28:33.400 --> 00:28:36.119 position where we had a hole and we were filling it with 00:28:36.119 --> 00:28:37.319 short-term market 00:28:37.319 --> 00:28:40.440 purchases now we can make its time is right to make 00:28:40.440 --> 00:28:42.160 investments going forward 00:28:42.160 --> 00:28:45.480 so it's really a as I mentioned yesterday kind of a sweet 00:28:45.480 --> 00:28:46.799 spot for for 00:28:46.799 --> 00:28:51.019 Denton to be able to fill its open position it's vacant you 00:28:51.019 --> 00:28:51.400 know it's 00:28:51.400 --> 00:28:53.680 shortage and power supply with something that's very 00:28:53.680 --> 00:28:54.720 environmentally and 00:28:54.720 --> 00:28:58.119 economically attractive so 00:28:58.119 --> 00:29:01.230 one other question how do we compete I know that our kilow 00:29:01.230 --> 00:29:02.519 att price per kilowatt hours 00:29:02.519 --> 00:29:06.920 from as a Californian who moved here incredibly inexpensive 00:29:06.920 --> 00:29:07.680 how do we compete 00:29:07.680 --> 00:29:11.019 against our other local markets and do we put that as in 00:29:11.019 --> 00:29:11.920 our economic 00:29:11.920 --> 00:29:15.079 development packet when we give we talk for bringing 00:29:15.079 --> 00:29:17.000 companies because seven 00:29:17.000 --> 00:29:21.130 cents a kilowatt hours ridiculously inexpensive I mean it's 00:29:21.130 --> 00:29:21.640 just it's a 00:29:21.640 --> 00:29:25.599 wonderful thing yeah so when you're when we're at the table 00:29:25.599 --> 00:29:27.319 and even the cities 00:29:27.319 --> 00:29:30.259 at the table we do tout the value of having a locally 00:29:30.259 --> 00:29:31.640 controlled and operated 00:29:31.640 --> 00:29:35.420 utility we're able to manage those costs and and and 00:29:35.420 --> 00:29:37.039 provide the level of service 00:29:37.039 --> 00:29:40.730 that some of the companies want so we do tout that today we 00:29:40.730 --> 00:29:42.519 're about in the 00:29:42.519 --> 00:29:44.690 middle of the pack when we look at the competitive 00:29:44.690 --> 00:29:46.079 suppliers that are out there 00:29:46.079 --> 00:29:48.789 and one of the reasons we're not better than that is 00:29:48.789 --> 00:29:50.160 because they have lived 00:29:50.160 --> 00:29:52.809 what's called short-term energy and energy gas prices have 00:29:52.809 --> 00:29:54.400 been dropping for 00:29:54.400 --> 00:29:57.680 a long time so they've taken advantage of that drop in the 00:29:57.680 --> 00:29:59.799 spot market and to 00:29:59.799 --> 00:30:02.059 me the price they're going to start paying will be this 00:30:02.059 --> 00:30:02.920 summer they've 00:30:02.920 --> 00:30:05.869 stayed short they've stayed open kind of like we were and 00:30:05.869 --> 00:30:06.880 they and they're going 00:30:06.880 --> 00:30:08.599 to have to go pay these really really high prices that we 00:30:08.599 --> 00:30:09.240 're going to start 00:30:09.240 --> 00:30:12.069 seeing this summer and already in just one month I saw we 00:30:12.069 --> 00:30:13.559 moved seven places in 00:30:13.559 --> 00:30:17.880 a list of about 50 utilities they went up higher than us 00:30:17.880 --> 00:30:19.119 just in the last month 00:30:19.119 --> 00:30:21.250 and I think over the next couple of months we're gonna be 00:30:21.250 --> 00:30:22.119 moving even closer 00:30:22.119 --> 00:30:25.799 so we're in about the middle of the pack today and and for 00:30:25.799 --> 00:30:27.039 that you're getting a 00:30:27.039 --> 00:30:31.049 grid that is being managed and built to serve Denton 20 and 00:30:31.049 --> 00:30:32.599 30 years out there 00:30:32.599 --> 00:30:37.130 it's a I was amazed at how ambitious and a program that we 00:30:37.130 --> 00:30:38.319 did have and as I 00:30:38.319 --> 00:30:43.039 studied it Carolyn oh well before you talk a little bit 00:30:43.039 --> 00:30:44.119 more about the grid I 00:30:44.119 --> 00:30:47.589 just want to point out to you that you know the middle of 00:30:47.589 --> 00:30:48.720 the pack is you know 00:30:48.720 --> 00:30:52.170 that's about where DME's pricing has been over the four 00:30:52.170 --> 00:30:53.839 years that I've been here 00:30:53.839 --> 00:30:58.329 but two really important things that we bring to the 00:30:58.329 --> 00:31:00.680 attention of prospects is 00:31:00.680 --> 00:31:04.180 that reliability issue that George discussed which is 00:31:04.180 --> 00:31:05.640 incredibly important 00:31:05.640 --> 00:31:09.480 especially for certain industries like manufacturing but 00:31:09.480 --> 00:31:11.839 then the consistency 00:31:11.839 --> 00:31:16.920 of the pricing which he also spoke to you know why DME can 00:31:16.920 --> 00:31:17.839 't maintains 00:31:17.839 --> 00:31:20.619 relatively level and steady pricing versus some of these 00:31:20.619 --> 00:31:21.480 other providers 00:31:21.480 --> 00:31:24.990 that have that volatility because of the way that they do 00:31:24.990 --> 00:31:27.000 their energy pricing so 00:31:27.000 --> 00:31:29.920 we just make sure that we are are talking about you know 00:31:29.920 --> 00:31:30.839 maybe we're not 00:31:30.839 --> 00:31:34.130 at the very bottom end of the the price range but there are 00:31:34.130 --> 00:31:35.319 these other things 00:31:35.319 --> 00:31:38.140 that will provide stability and take away some of that 00:31:38.140 --> 00:31:39.359 uncertainty which is 00:31:39.359 --> 00:31:42.910 what everybody's trying to minimize yeah yeah and and I 00:31:42.910 --> 00:31:44.079 think what I've already 00:31:44.079 --> 00:31:47.039 heard is if you need something at your business if you need 00:31:47.039 --> 00:31:47.920 to be let's say you 00:31:47.920 --> 00:31:50.069 have a new business and you need to be hooked up or you 00:31:50.069 --> 00:31:50.759 need to have the 00:31:50.759 --> 00:31:53.349 utility out there to do something because you only have 00:31:53.349 --> 00:31:54.200 this short period 00:31:54.200 --> 00:31:58.240 of time in a window to get in there we make it happen you 00:31:58.240 --> 00:31:59.119 know and we're very 00:31:59.119 --> 00:32:03.519 responsive to that that is not how typically these other 00:32:03.519 --> 00:32:04.160 distribution 00:32:04.160 --> 00:32:07.180 companies work you get in a queue you get on a list and 00:32:07.180 --> 00:32:09.680 there you work with 00:32:09.680 --> 00:32:12.750 their schedule and they don't necessarily work with yours 00:32:12.750 --> 00:32:13.319 every place 00:32:13.319 --> 00:32:16.750 I've been so Jim you can probably testify to that it been 00:32:16.750 --> 00:32:17.640 pretty responsive 00:32:17.640 --> 00:32:21.799 when you have an issue I think that's gonna be the 00:32:34.799 --> 00:32:39.349 wonderful that level of service so we are in the middle of 00:32:39.349 --> 00:32:40.079 this major 00:32:40.079 --> 00:32:44.220 expansion and upgrade the system locally that the subst 00:32:44.220 --> 00:32:45.359 ations and the 00:32:45.359 --> 00:32:49.240 transmission lines that move power between the substations 00:32:49.240 --> 00:32:50.119 had gotten 00:32:50.119 --> 00:32:54.309 outdated and old and what has happened is a lot of power is 00:32:54.309 --> 00:32:55.519 moving from the 00:32:55.519 --> 00:32:58.049 western part of the state as a result of renewables and 00:32:58.049 --> 00:32:59.279 places where people can 00:32:59.279 --> 00:33:01.930 build cheaper power plants it's going through Denton 00:33:01.930 --> 00:33:02.720 because that's how the 00:33:02.720 --> 00:33:06.730 grid operates it's an electrical connections to places east 00:33:06.730 --> 00:33:07.759 of us and it 00:33:07.759 --> 00:33:11.240 was causing a lot of issues and impacts on our system so we 00:33:11.240 --> 00:33:13.720 sort of got we were 00:33:13.720 --> 00:33:16.680 able to upgrade locally and able to share a lot of that 00:33:16.680 --> 00:33:17.799 most if not all that 00:33:17.799 --> 00:33:20.750 cost with others in the state under the state's social 00:33:20.750 --> 00:33:22.000 ization of transmission 00:33:22.000 --> 00:33:26.319 costs and get ourselves a brand new nice high functioning 00:33:26.319 --> 00:33:28.519 network and and just 00:33:28.519 --> 00:33:30.769 the last piece of it so the substations now are a little 00:33:30.769 --> 00:33:32.160 bit like the center we 00:33:32.160 --> 00:33:34.890 talked about it yesterday of a wheel right deck the hub and 00:33:34.890 --> 00:33:35.599 then there's 00:33:35.599 --> 00:33:37.890 spokes going out those spokes actually take power then to 00:33:37.890 --> 00:33:39.400 the neighborhoods and 00:33:39.400 --> 00:33:41.970 I think Keely indicated it's those spokes a lot of times 00:33:41.970 --> 00:33:42.759 that caused the 00:33:42.759 --> 00:33:46.519 the issues with service locally because you've got overhead 00:33:46.519 --> 00:33:47.680 lines older lines 00:33:47.680 --> 00:33:50.200 you've got the critters getting in there they don't usually 00:33:50.200 --> 00:33:50.720 affect the 00:33:50.720 --> 00:33:53.339 transmission or substations but they do the local line so 00:33:53.339 --> 00:33:54.279 that's where we're 00:33:54.279 --> 00:33:58.039 doing feeder sweeps right now we're going from one end of 00:33:58.039 --> 00:33:59.200 the these little 00:33:59.200 --> 00:34:01.660 circuits that come out of the substations we call them feed 00:34:01.660 --> 00:34:02.200 ers all the 00:34:02.200 --> 00:34:05.809 way to end users and fixing repairing updating replacing 00:34:05.809 --> 00:34:07.240 putting this critter 00:34:07.240 --> 00:34:10.619 protection out there that's we found some that actually 00:34:10.619 --> 00:34:11.679 seems to work and 00:34:11.679 --> 00:34:14.369 just in the last couple of months we've been very 00:34:14.369 --> 00:34:16.000 aggressive that we've seen 00:34:16.000 --> 00:34:24.360 the results of that so so that's that's my little pitch on 00:34:24.360 --> 00:34:25.360 that local grid so 00:34:25.360 --> 00:34:27.659 customers come to Denton we're going to be there we have 00:34:27.659 --> 00:34:28.480 plenty of capacity 00:34:28.480 --> 00:34:33.199 plenty of reliability you know be you cold storage or data 00:34:33.199 --> 00:34:35.679 farm or you know 00:34:35.679 --> 00:34:40.050 production facility for like a Peterbilt and we'll be there 00:34:40.050 --> 00:34:42.199 so in conclusion DME 00:34:42.199 --> 00:34:45.030 prepared for the future was the thing that came to mind 00:34:45.030 --> 00:34:46.079 when I put this slide 00:34:46.079 --> 00:34:50.179 together significant expansion and modernization of the 00:34:50.179 --> 00:34:51.880 grid here locally 00:34:51.880 --> 00:34:56.639 leadership by the City Council and the utility and using 00:34:56.639 --> 00:34:57.239 environmentally 00:34:57.239 --> 00:34:59.699 positive power resources with that hundred percent 00:34:59.699 --> 00:35:00.880 renewable goal which as 00:35:00.880 --> 00:35:03.460 I said makes sense today if it didn't make sense I was 00:35:03.460 --> 00:35:04.320 going to say something 00:35:04.320 --> 00:35:06.570 that's what I meant to finish my thought a little bit 00:35:06.570 --> 00:35:07.840 earlier and say oh guys are 00:35:07.840 --> 00:35:10.610 you sure you want to do this because for the first 35 years 00:35:10.610 --> 00:35:11.719 of my career didn't 00:35:11.719 --> 00:35:14.719 really make sense you had to do it for other reasons since 00:35:14.719 --> 00:35:15.360 from an economic 00:35:15.360 --> 00:35:18.559 standpoint but it clearly does today both from an 00:35:18.559 --> 00:35:19.280 environmental and economic 00:35:19.280 --> 00:35:24.280 standpoint and lastly you know it I know there's different 00:35:24.280 --> 00:35:25.599 perspectives about the 00:35:25.599 --> 00:35:29.199 Denton Energy Center you know I think we're working through 00:35:29.199 --> 00:35:31.079 that but it is a 00:35:31.079 --> 00:35:35.179 big project for us an important one and one that we know is 00:35:35.179 --> 00:35:36.719 invested by you and 00:35:36.719 --> 00:35:40.099 the citizens and the businesses we're going to optimize the 00:35:40.099 --> 00:35:40.920 value of that 00:35:40.920 --> 00:35:46.280 plant going forward and I think as Chris mentioned one of 00:35:46.280 --> 00:35:48.159 the big times when it 00:35:48.159 --> 00:35:50.880 could have value is when the renew when the winds not there 00:35:50.880 --> 00:35:52.599 we have prices going 00:35:52.599 --> 00:35:57.710 to $9,000 a megawatt hour and you pay maybe $100 at your 00:35:57.710 --> 00:35:58.639 house if I could put 00:35:58.639 --> 00:36:02.360 it in those terms 9,000 when the wind just disappeared what 00:36:02.360 --> 00:36:04.199 a cold front wind 00:36:04.199 --> 00:36:07.440 stopped the front came through and prices went to 9,000 00:36:07.440 --> 00:36:08.199 this would be when 00:36:08.199 --> 00:36:10.750 something like this could be extremely valuable and because 00:36:10.750 --> 00:36:11.519 otherwise we're 00:36:11.519 --> 00:36:14.119 going to pay that 9,000 because we have to buy our load as 00:36:14.119 --> 00:36:15.000 you remember from the 00:36:15.000 --> 00:36:17.880 market and at the same time we can get credit for it by 00:36:17.880 --> 00:36:19.199 operating the deck so 00:36:19.199 --> 00:36:23.550 so that's the value it not necessarily required technically 00:36:23.550 --> 00:36:24.639 to have renewables 00:36:24.639 --> 00:36:27.250 but it does provide a little bit of a hedge and a buffer so 00:36:27.250 --> 00:36:27.920 those are my 00:36:27.920 --> 00:36:32.960 comments it's nice meeting everybody any further questions 00:36:34.199 --> 00:36:38.500 so one question just that I'm not directly associated with 00:36:38.500 --> 00:36:39.360 but your 00:36:39.360 --> 00:36:43.199 philosophy on substations you have in my understanding 00:36:43.199 --> 00:36:44.559 there's two there's hey 00:36:44.559 --> 00:36:47.469 greenery around the substations okay to kind of screen it 00:36:47.469 --> 00:36:48.960 and then there's hey I 00:36:48.960 --> 00:36:51.849 don't want trees etc planted around the substations people 00:36:51.849 --> 00:36:53.239 could climb it get in 00:36:53.239 --> 00:36:56.869 there animals whatever that is what do you what do you fall 00:36:56.869 --> 00:36:57.559 on future 00:36:57.559 --> 00:37:02.119 substations either a screening or kind of keeping 00:37:02.119 --> 00:37:03.280 everything away from them to 00:37:03.280 --> 00:37:07.440 keep it safe you know the business has evolved dramatically 00:37:07.440 --> 00:37:08.719 with respect to 00:37:08.719 --> 00:37:11.530 that in the old days it was a chain-link fence that's what 00:37:11.530 --> 00:37:12.280 you got right with a 00:37:12.280 --> 00:37:16.199 sign saying high voltage stay away there's so many of those 00:37:16.199 --> 00:37:17.000 around the 00:37:17.000 --> 00:37:19.969 country probably in the Dallas area some of the older subst 00:37:19.969 --> 00:37:21.119 ations I think that's 00:37:21.119 --> 00:37:25.960 not our approach so our approaches we're going to try to 00:37:25.960 --> 00:37:28.400 make the substation as 00:37:28.400 --> 00:37:31.559 aesthetically pleasing as possible at the same time you did 00:37:31.559 --> 00:37:32.219 raise some 00:37:32.219 --> 00:37:37.800 appropriate concerns we are concerned about safety and and 00:37:37.800 --> 00:37:38.760 and also concerned 00:37:38.760 --> 00:37:41.269 about the the critters being able to hop the tree hop the 00:37:41.269 --> 00:37:42.360 fence and pop on over 00:37:42.360 --> 00:37:45.989 though those guys can figure out how to do anything anyway 00:37:45.989 --> 00:37:47.039 so is there some 00:37:47.039 --> 00:37:50.360 trees is there a substation you're thinking about council 00:37:50.360 --> 00:37:52.159 man 00:37:52.159 --> 00:37:55.170 I didn't know was there until I had to get it up on it and 00:37:55.170 --> 00:37:55.880 look through the 00:37:55.880 --> 00:38:00.360 trees and so I asked previously before you got here and 00:38:00.360 --> 00:38:01.480 they that was their 00:38:01.480 --> 00:38:05.059 explanation hey we don't like to screen them because it 00:38:05.059 --> 00:38:06.639 provides opportunities 00:38:06.639 --> 00:38:10.340 for people to climb the trees animals upon the trees and 00:38:10.340 --> 00:38:10.800 then hop over so 00:38:10.800 --> 00:38:14.360 that's why ours do not have that screening but we do have 00:38:14.360 --> 00:38:15.079 we do have nice 00:38:15.079 --> 00:38:19.559 fences though right we have some is that your preference to 00:38:19.559 --> 00:38:20.800 have kind of 00:38:20.800 --> 00:38:24.079 decorative brick or something like that but not to have 00:38:24.079 --> 00:38:25.599 greenery in front of it 00:38:25.599 --> 00:38:28.719 to kind of screen it is that am I capturing that right yes 00:38:28.719 --> 00:38:29.039 you know I've 00:38:29.039 --> 00:38:33.110 done them in the middle of the woods if I had to to kind of 00:38:33.110 --> 00:38:34.159 make them as 00:38:34.159 --> 00:38:37.889 compatible with the community so I think trees per se is 00:38:37.889 --> 00:38:39.159 not negative we might 00:38:39.159 --> 00:38:41.460 have to look and I'd be happy to look and talk to our folks 00:38:41.460 --> 00:38:42.079 a little more 00:38:42.079 --> 00:38:44.659 about that that hasn't really come on my radar at the 00:38:44.659 --> 00:38:47.679 moment maybe there's might 00:38:47.679 --> 00:38:50.039 depend if we've got some underground facilities there also 00:38:50.039 --> 00:38:50.840 and we're trying 00:38:50.840 --> 00:38:53.400 to dodge and duck maybe that we don't have enough easement 00:38:53.400 --> 00:38:53.980 outside the 00:38:53.980 --> 00:38:56.380 substation because some of these substations are pretty 00:38:56.380 --> 00:38:56.679 tight 00:38:56.679 --> 00:39:01.610 particularly if in the inner city area so let me just dig 00:39:01.610 --> 00:39:02.840 into that a little 00:39:02.840 --> 00:39:07.550 bit I think I'm okay with providing as much aesthetics as 00:39:07.550 --> 00:39:08.400 possible that's 00:39:08.400 --> 00:39:13.550 consistent with the other objectives oh Chris gonna take 00:39:13.550 --> 00:39:14.880 care of this for me 00:39:14.880 --> 00:39:19.280 I've been around for a while so it's here before George mr. 00:39:19.280 --> 00:39:20.599 one one have you 00:39:20.599 --> 00:39:23.659 are you familiar with our Cooper Creek substation it's of 00:39:23.659 --> 00:39:26.440 Audre Lane and loop 00:39:26.440 --> 00:39:30.320 288 it kind of sets back and it actually bumps up to a 00:39:30.320 --> 00:39:31.760 neighborhood so it's a it 00:39:31.760 --> 00:39:34.989 was a greenfield site that we built and so to kind of 00:39:34.989 --> 00:39:36.659 accommodate that we had 00:39:36.659 --> 00:39:41.030 some room is we planted a tree buffer between the houses 00:39:41.030 --> 00:39:42.880 and we left about 50 00:39:42.880 --> 00:39:46.320 feet to kind of maintain that clear zone but we were able 00:39:46.320 --> 00:39:47.719 to plant trees for the 00:39:47.719 --> 00:39:51.559 houses to kind of to separate them or give them a buffer 00:39:51.559 --> 00:39:52.659 between the 00:39:52.659 --> 00:39:56.860 substation so in that situation yeah that works out so so 00:39:56.860 --> 00:39:58.119 our goals are met 00:39:58.119 --> 00:40:01.369 and then we could also provide the the neighbors with some 00:40:01.369 --> 00:40:02.440 some tree buffer 00:40:02.440 --> 00:40:08.239 where possible yeah we had we had enough room so we 00:40:08.239 --> 00:40:09.360 actually planted trees we put 00:40:09.360 --> 00:40:12.019 irrigation in the trees are coming in but that's a 00:40:12.019 --> 00:40:13.599 situation where every site 00:40:13.599 --> 00:40:16.800 we go to we still go through the the development process 00:40:16.800 --> 00:40:17.559 there is a tree 00:40:17.559 --> 00:40:20.429 requirement even though the substations themselves cannot 00:40:20.429 --> 00:40:21.480 have trees in them our 00:40:21.480 --> 00:40:24.469 area that's left around there is still subject to the didn 00:40:24.469 --> 00:40:25.599 't development code 00:40:25.599 --> 00:40:29.030 so we plant trees where we need to or where we have room or 00:40:29.030 --> 00:40:29.960 where it's not 00:40:29.960 --> 00:40:33.860 going to become a reliability to try to offset the visual 00:40:33.860 --> 00:40:35.280 impact of a substation 00:40:35.280 --> 00:40:39.570 okay so I guess my ask would be if you can follow up me and 00:40:39.570 --> 00:40:40.280 it can be an email 00:40:40.280 --> 00:40:42.980 but I'd be curious to see once we get there what you're 00:40:42.980 --> 00:40:43.639 getting what's gonna 00:40:43.639 --> 00:40:46.400 go in on Bonnie right there as you clear that out kind of 00:40:46.400 --> 00:40:47.920 what you envision that 00:40:47.920 --> 00:40:51.199 to look like so that's Bonnie break between Hickory Oak 00:40:51.199 --> 00:40:51.920 right there's one 00:40:51.920 --> 00:40:54.920 there yeah yeah that'd be our new Hickory substation yes 00:40:54.920 --> 00:40:57.199 okay thank you 00:40:57.199 --> 00:41:03.679 anybody else have any questions or comments I would just 00:41:03.679 --> 00:41:04.280 remind everybody 00:41:04.280 --> 00:41:09.349 given the word economic development board DME plays a huge 00:41:09.349 --> 00:41:10.719 part in our 00:41:10.719 --> 00:41:13.690 negotiations with companies coming in because electricity 00:41:13.690 --> 00:41:14.679 is a big part of the 00:41:14.679 --> 00:41:20.440 battle target cold storage or cold distribution center 00:41:20.440 --> 00:41:21.679 comes in there's an 00:41:21.679 --> 00:41:24.829 electricity so they're immensely important to the whole 00:41:24.829 --> 00:41:25.679 process as we're 00:41:25.679 --> 00:41:30.110 talking to folks so appreciate y'all being here today you 00:41:30.110 --> 00:41:31.440 can you're welcome 00:41:31.440 --> 00:41:43.860 to stay all right next we have item EDP 18 - 29 to have a 00:41:43.860 --> 00:41:45.760 report on the an 00:41:45.760 --> 00:41:49.679 update on the public improvement district guidelines 00:41:49.679 --> 00:41:50.920 Caroline will 00:41:50.920 --> 00:41:57.000 present that good morning everybody I'm going to give you a 00:41:57.000 --> 00:42:00.280 quick update on our 00:42:00.280 --> 00:42:04.639 council review of the public improvement district 00:42:04.639 --> 00:42:06.760 guidelines that you all have 00:42:06.760 --> 00:42:11.269 discussed a couple times before so I'm gonna go through 00:42:11.269 --> 00:42:12.679 these really quickly 00:42:12.679 --> 00:42:16.559 but just wanted to give everyone the quick overview of what 00:42:16.559 --> 00:42:17.400 the council's 00:42:17.400 --> 00:42:21.559 direction was from the work session that we had on April 10 00:42:21.559 --> 00:42:23.360 th they wanted to 00:42:23.360 --> 00:42:27.119 re-include residential pids which had previously been 00:42:27.119 --> 00:42:29.400 excluded they asked for 00:42:29.400 --> 00:42:33.480 some expansion on what demonstrable public benefit is and 00:42:33.480 --> 00:42:34.400 how it can be 00:42:34.400 --> 00:42:38.760 determined also wanted to make sure that residential purch 00:42:38.760 --> 00:42:40.800 asers within a PID would 00:42:40.800 --> 00:42:45.719 be clearly informed of the fact that their home is in a PID 00:42:45.719 --> 00:42:46.559 and there would 00:42:46.559 --> 00:42:50.360 be additional assessments they also asked for a checklist 00:42:50.360 --> 00:42:51.239 of development 00:42:51.239 --> 00:42:54.960 standards for residential developments requesting PIDs and 00:42:54.960 --> 00:42:57.159 the solution to that 00:42:57.159 --> 00:43:00.710 because these projects are each going to be unique as they 00:43:00.710 --> 00:43:02.280 come forward is we are 00:43:02.280 --> 00:43:05.559 working with outside council to create a development 00:43:05.559 --> 00:43:07.320 agreement template that is 00:43:07.320 --> 00:43:11.199 going to be required for all PIDs and this item can be 00:43:11.199 --> 00:43:12.719 addressed in those 00:43:12.719 --> 00:43:16.000 templates or in that template and can be customized 00:43:16.000 --> 00:43:17.639 depending on the particular 00:43:17.639 --> 00:43:21.869 aspects of the project and then there also would we would 00:43:21.869 --> 00:43:22.880 retain an 00:43:22.880 --> 00:43:28.360 assessment cap so that was council feedback and y'all have 00:43:28.360 --> 00:43:29.440 already seen 00:43:29.440 --> 00:43:32.750 this so I'm not going to go through it again but there are 00:43:32.750 --> 00:43:33.599 specific ways to 00:43:33.599 --> 00:43:38.300 mitigate risk and maximize benefits and ensure performance 00:43:38.300 --> 00:43:41.119 related to PIDs so you 00:43:41.119 --> 00:43:45.579 can't see that but it's in your backup not sure why I 00:43:45.579 --> 00:43:47.239 decided it was necessary 00:43:47.239 --> 00:43:53.000 to put that in there but basically this is the revision to 00:43:53.000 --> 00:43:54.760 the PID guidelines 00:43:54.760 --> 00:43:59.579 that we have developed working with our outside council 00:43:59.579 --> 00:44:01.199 Julie Fort from Messer 00:44:01.199 --> 00:44:04.960 Rockefeller in Fort they're an extremely experienced 00:44:04.960 --> 00:44:07.719 municipal law firm and she 00:44:07.719 --> 00:44:11.250 has really helped us put some more parameters around 00:44:11.250 --> 00:44:12.760 demonstrable public 00:44:12.760 --> 00:44:17.449 benefit so we defined it as clearly apparent positive 00:44:17.449 --> 00:44:19.000 effect or reduction of 00:44:19.000 --> 00:44:22.179 negative effects on the population or community so that's 00:44:22.179 --> 00:44:23.280 what the demonstrable 00:44:23.280 --> 00:44:28.630 public benefit is but then if you look further you can see 00:44:28.630 --> 00:44:29.599 that what we've 00:44:29.599 --> 00:44:32.929 decided to do is kind of give examples of what could 00:44:32.929 --> 00:44:34.480 constitute demonstrable 00:44:34.480 --> 00:44:38.900 public benefit for example the development being of higher 00:44:38.900 --> 00:44:39.679 quality and 00:44:39.679 --> 00:44:43.030 occurring sooner than it would if it was left to the open 00:44:43.030 --> 00:44:44.559 market and some further 00:44:44.559 --> 00:44:49.230 detail about what higher quality could mean another sample 00:44:49.230 --> 00:44:50.800 would be development 00:44:50.800 --> 00:44:55.210 in the city's ETJ and the owner is willing to voluntarily 00:44:55.210 --> 00:44:56.400 annex into the 00:44:56.400 --> 00:45:01.230 city a developer could voluntarily pay for some over sizing 00:45:01.230 --> 00:45:02.280 of infrastructure 00:45:02.280 --> 00:45:06.059 and a couple of other things to make sure that the 00:45:06.059 --> 00:45:07.840 development would be 00:45:07.840 --> 00:45:11.650 showing demonstrable public benefit and then we also felt 00:45:11.650 --> 00:45:12.920 that it was really 00:45:12.920 --> 00:45:15.739 important to give some more detail or include the detail 00:45:15.739 --> 00:45:16.360 about how to 00:45:16.360 --> 00:45:19.349 determine whether the PID would be fiscally feasible and 00:45:19.349 --> 00:45:20.840 this is a section 00:45:20.840 --> 00:45:23.380 that incorporates some of those things that y'all have seen 00:45:23.380 --> 00:45:24.239 me present over and 00:45:24.239 --> 00:45:27.539 over again is we don't want to have PID bond terms any 00:45:27.539 --> 00:45:30.340 longer than 30 years the 00:45:30.340 --> 00:45:34.650 value to lien ratio being three to one debt being used for 00:45:34.650 --> 00:45:36.079 reimbursement of 00:45:36.079 --> 00:45:39.400 costs only instead of fronting fronting the money for the 00:45:39.400 --> 00:45:40.880 work so that's just a 00:45:40.880 --> 00:45:44.690 restatement of those things that have been under discussion 00:45:44.690 --> 00:45:45.320 since the 00:45:45.320 --> 00:45:50.360 beginning of the review by both this board and the council 00:45:50.360 --> 00:45:52.320 that's really all 00:45:52.320 --> 00:45:55.510 I wanted to give you as far as the presentation but I'm 00:45:55.510 --> 00:45:56.679 glad to answer any 00:45:56.679 --> 00:46:01.920 questions that anybody has and we do have a recommendation 00:46:01.920 --> 00:46:03.280 on the agenda at 00:46:03.280 --> 00:46:07.070 during the regular meeting if you should so choose to make 00:46:07.070 --> 00:46:07.960 a recommendation to 00:46:07.960 --> 00:46:12.719 council go back to your slide three 00:46:16.719 --> 00:46:27.920 this one one back I'm sorry yeah so the city is going to 00:46:27.920 --> 00:46:28.960 give notice to 00:46:28.960 --> 00:46:32.760 residential purchasers of PID assessments when they buy a 00:46:32.760 --> 00:46:33.840 house so 00:46:33.840 --> 00:46:37.559 there's already there are already rules at the state level 00:46:37.559 --> 00:46:38.920 about disclosure of 00:46:38.920 --> 00:46:44.360 that and we we discussed that so that will clearly be done 00:46:44.360 --> 00:46:45.679 the outside 00:46:45.679 --> 00:46:49.860 council had some good examples of other ways that that can 00:46:49.860 --> 00:46:51.039 be handled with 00:46:51.039 --> 00:46:56.019 postings and you know outside the property itself or you 00:46:56.019 --> 00:46:57.039 know requiring 00:46:57.039 --> 00:47:00.179 certain things of the developer and we can specify what 00:47:00.179 --> 00:47:01.599 that looks like and the 00:47:01.599 --> 00:47:03.820 responsibility would be on the developer to do the 00:47:03.820 --> 00:47:05.280 notification not the city 00:47:05.280 --> 00:47:08.480 itself and that's something that we can address in the 00:47:08.480 --> 00:47:09.960 development agreement 00:47:09.960 --> 00:47:13.250 that would be project specific I just I think the city's 00:47:13.250 --> 00:47:14.199 getting ahead of 00:47:14.199 --> 00:47:22.969 themselves a sales contract will require the seller to just 00:47:22.969 --> 00:47:24.840 disclose that the 00:47:24.840 --> 00:47:28.030 title company will have to disclose that the lender will 00:47:28.030 --> 00:47:29.719 have to disclose that so 00:47:29.719 --> 00:47:32.940 they're in it that the city is gonna have some kind of 00:47:32.940 --> 00:47:34.239 requirement and fails 00:47:34.239 --> 00:47:38.199 to do something I just think that's I think it's overkill 00:47:38.199 --> 00:47:38.760 they're getting 00:47:38.760 --> 00:47:43.260 noticed as they're buying property it's I promise you that 00:47:43.260 --> 00:47:43.880 it's in there and 00:47:43.880 --> 00:47:48.519 it's a requirement legally so I think this city's stepping 00:47:48.519 --> 00:47:51.280 outside of their 00:47:51.280 --> 00:47:55.679 requirement to have to do that don't disagree that we have 00:47:55.679 --> 00:47:56.960 to notify people 00:47:56.960 --> 00:47:59.360 it's the same thing if you're in a homeowners association 00:47:59.360 --> 00:48:00.119 and there's dues 00:48:00.119 --> 00:48:02.940 or whatever all that has to get done there's laws in place 00:48:02.940 --> 00:48:04.119 to get done and 00:48:04.119 --> 00:48:06.900 as a banker we have to make sure that that's a count of 00:48:06.900 --> 00:48:08.119 that because they're 00:48:08.119 --> 00:48:10.469 gonna pay that can afford to make those payments so I just 00:48:10.469 --> 00:48:11.239 think that's not 00:48:11.239 --> 00:48:14.239 necessary 00:48:14.480 --> 00:48:17.630 he's speaking from one side speaking from another and I'm 00:48:17.630 --> 00:48:18.599 sure Bob will 00:48:18.599 --> 00:48:22.800 appreciate this my other concern would be that if the onus 00:48:22.800 --> 00:48:23.559 what you're saying 00:48:23.559 --> 00:48:26.039 it would just be maybe part of a checklist that the city 00:48:26.039 --> 00:48:26.719 would ask the 00:48:26.719 --> 00:48:32.760 developer to complete but okay I think the wording would be 00:48:32.760 --> 00:48:33.559 important so that 00:48:33.559 --> 00:48:36.050 there would be no liability that would come back on the 00:48:36.050 --> 00:48:37.360 city so that if all of 00:48:37.360 --> 00:48:40.239 these neighbors said hey we got this notice it was checked 00:48:40.239 --> 00:48:40.739 off on the 00:48:40.739 --> 00:48:43.480 developers checklist and this person said well I talked to 00:48:43.480 --> 00:48:44.400 some friends of mine 00:48:44.400 --> 00:48:48.050 they got a notice I didn't so I assumed I didn't I wasn't 00:48:48.050 --> 00:48:49.760 within there in that 00:48:49.760 --> 00:48:53.269 the state or whomever else had given me a notice didn't 00:48:53.269 --> 00:48:54.719 give me or gave me notice 00:48:54.719 --> 00:48:57.530 but they were incorrect if there was some kind of liability 00:48:57.530 --> 00:48:58.360 back on the city 00:48:58.360 --> 00:49:03.260 so as far as due diligence and following up on whether the 00:49:03.260 --> 00:49:04.239 developer 00:49:04.239 --> 00:49:07.869 whether or not they checked that box actually completed 00:49:07.869 --> 00:49:08.880 that notice I'm 00:49:08.880 --> 00:49:13.679 saying is worth maybe a little more conversation well um 00:49:13.679 --> 00:49:15.960 thank you so that's 00:49:15.960 --> 00:49:18.460 one of the reasons why we wanted to bring in an outside 00:49:18.460 --> 00:49:19.360 council that has 00:49:19.360 --> 00:49:23.210 significant experience with crafting these types of 00:49:23.210 --> 00:49:24.960 agreements and has seen 00:49:24.960 --> 00:49:27.780 it done a lot of different ways in a lot of different 00:49:27.780 --> 00:49:29.239 places and could advise 00:49:29.239 --> 00:49:35.679 when we get to that situation so it's it's noted in in the 00:49:35.679 --> 00:49:37.840 policy that there 00:49:37.840 --> 00:49:40.809 will be a requirement that you know in addition to the 00:49:40.809 --> 00:49:42.519 state requirements but 00:49:42.519 --> 00:49:46.449 that's something that when the situation comes up when we 00:49:46.449 --> 00:49:47.679 get to that point with 00:49:47.679 --> 00:49:51.679 the residential PID we're gonna want to rely on our outside 00:49:51.679 --> 00:49:52.519 council to help us 00:49:52.519 --> 00:49:54.869 do that the right way and make sure that we're not opening 00:49:54.869 --> 00:49:55.480 the city up for 00:49:55.480 --> 00:49:59.679 liability or that we're not overstepping our bounds so I 00:49:59.679 --> 00:50:02.360 don't that sounds maybe 00:50:02.360 --> 00:50:05.380 like a little bit of a hedge but we want to continue to 00:50:05.380 --> 00:50:06.960 move the general policy 00:50:06.960 --> 00:50:09.840 forward with the acknowledgement that notice is important 00:50:09.840 --> 00:50:10.760 and we want to make 00:50:10.760 --> 00:50:14.300 sure that people are getting properly noticed and these 00:50:14.300 --> 00:50:15.420 specifics can be 00:50:15.420 --> 00:50:18.840 addressed when we write the development agreement when we 00:50:18.840 --> 00:50:20.079 get to that point I 00:50:20.079 --> 00:50:22.760 understand 00:50:24.559 --> 00:50:29.030 I generally agree with you but I think real-life scenarios 00:50:29.030 --> 00:50:31.360 have changed my 00:50:31.360 --> 00:50:34.340 perspective and I'll give you three so there's one where 00:50:34.340 --> 00:50:35.360 there's a neighborhood 00:50:35.360 --> 00:50:37.559 that's right on the edge of the city of Denton there's 00:50:37.559 --> 00:50:38.400 about eight or nine 00:50:38.400 --> 00:50:41.130 houses that were built and I'm sure they were noticed and I 00:50:41.130 --> 00:50:42.980 'm sure they got they 00:50:42.980 --> 00:50:48.679 were communicated with about their internet provider etc. I 00:50:48.679 --> 00:50:49.119 like their up 00:50:49.119 --> 00:50:52.269 fast forward to the end of the story I'm getting emails 00:50:52.269 --> 00:50:53.559 about hey I have no 00:50:53.559 --> 00:50:57.860 ability for high-speed internet in my neighborhood and it 00:50:57.860 --> 00:50:59.800 'll cost the city if 00:50:59.800 --> 00:51:03.429 we were to try to help bridge that gap the lowest quote I 00:51:03.429 --> 00:51:04.480 think is a hundred 00:51:04.480 --> 00:51:07.500 and fifty thousand dollars and so at that point I don't 00:51:07.500 --> 00:51:08.760 have access to those 00:51:08.760 --> 00:51:12.519 documents to say well no no it's here page 38 where you got 00:51:12.519 --> 00:51:13.880 noticed that's 00:51:13.880 --> 00:51:17.360 not something that you would notice on a sales contract 00:51:17.360 --> 00:51:18.920 well I said but I say 00:51:18.920 --> 00:51:21.880 that to say I would it's a question I would there's 00:51:21.880 --> 00:51:23.679 questions that I would ask 00:51:23.679 --> 00:51:26.289 right and there's questions that how does this work who's 00:51:26.289 --> 00:51:27.039 here you know we're 00:51:27.039 --> 00:51:29.860 talking about it's no different than a school being what 00:51:29.860 --> 00:51:30.800 school district 00:51:30.800 --> 00:51:33.739 command it's completely different because we're talking 00:51:33.739 --> 00:51:34.440 about tax you're 00:51:34.440 --> 00:51:37.440 having to pay money on your lot what the taxes are or 00:51:37.440 --> 00:51:38.440 whatever those are required 00:51:38.440 --> 00:51:41.050 whether you're in a good school district have access to 00:51:41.050 --> 00:51:43.599 internet is a good 00:51:43.599 --> 00:51:45.519 question to know and make sure you get that and somebody 00:51:45.519 --> 00:51:46.199 needs to know that 00:51:46.199 --> 00:51:49.639 and check that out but it's not taxing your property you're 00:51:49.639 --> 00:51:50.639 implying money 00:51:50.639 --> 00:51:53.309 against your property that you have to pay is all I'm 00:51:53.309 --> 00:51:54.480 saying well and so maybe 00:51:54.480 --> 00:51:59.440 I need to zero in on my point my point is this there are 00:51:59.440 --> 00:52:00.559 questions that you 00:52:00.559 --> 00:52:02.690 would assume get asked and there are questions that you 00:52:02.690 --> 00:52:03.480 would assume don't 00:52:03.480 --> 00:52:07.250 follow in the city but I'll tell you those issues fall on 00:52:07.250 --> 00:52:08.199 the city and I want 00:52:08.199 --> 00:52:11.380 access to those documents to then present to the party I'm 00:52:11.380 --> 00:52:12.000 sitting across 00:52:12.000 --> 00:52:16.280 from that's upset upset to say here's the page you're on 00:52:16.280 --> 00:52:18.039 versus not having 00:52:18.039 --> 00:52:21.139 access because the company could have sold they destroyed 00:52:21.139 --> 00:52:22.280 the records they 00:52:22.280 --> 00:52:25.159 didn't keep them they didn't scan them I want something 00:52:25.159 --> 00:52:26.360 under my control under 00:52:26.360 --> 00:52:28.909 the city that I can then present to that individual and say 00:52:28.909 --> 00:52:29.880 hey you were noticed 00:52:29.880 --> 00:52:32.960 and I'm sorry we're in a situation now let's figure it out 00:52:32.960 --> 00:52:35.000 but to not have 00:52:35.000 --> 00:52:38.610 anything under my control that I can defend where we stand 00:52:38.610 --> 00:52:39.639 is not acceptable 00:52:39.639 --> 00:52:43.079 and I don't like it and so there's that instance there's an 00:52:43.079 --> 00:52:43.639 instance in 00:52:43.639 --> 00:52:47.090 southeast didn't a lot was sold to an individual and they 00:52:47.090 --> 00:52:48.519 weren't they say 00:52:48.519 --> 00:52:51.000 they weren't notified I'm assuming it's in the paperwork 00:52:51.000 --> 00:52:52.039 somewhere they didn't 00:52:52.039 --> 00:52:55.139 read it they didn't read it or they don't know I don't know 00:52:55.139 --> 00:52:56.559 I mean you're 00:52:56.559 --> 00:53:00.070 asking me to I'm taking a position that hey it's coming to 00:53:00.070 --> 00:53:01.119 us right it's it and 00:53:01.119 --> 00:53:03.960 so it's it's my job to knock the ball back on the other 00:53:03.960 --> 00:53:05.800 side of the net and so 00:53:05.800 --> 00:53:09.070 that I'm happy to do that but I need I need a racket and so 00:53:09.070 --> 00:53:10.280 this instance 00:53:10.280 --> 00:53:13.920 someone sold a property and all the fees that came with it 00:53:13.920 --> 00:53:14.760 now they're blowing 00:53:14.760 --> 00:53:17.150 back at us and hey we weren't told about these fees and 00:53:17.150 --> 00:53:18.639 these assessments for us 00:53:18.639 --> 00:53:20.889 developed a piece of property they thought they bought a 00:53:20.889 --> 00:53:21.920 heck of a deal you 00:53:21.920 --> 00:53:24.599 know but oh by the way here's a piece that come with 00:53:24.599 --> 00:53:25.599 developing that you know 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 00:53:28.829 --> 00:53:29.840 to say hey it's 00:53:29.840 --> 00:53:33.840 your and on a much smaller scale look at the parking I mean 00:53:33.840 --> 00:53:34.920 Jack Bell parking lot 00:53:34.920 --> 00:53:39.960 has generated more emails then we're not in charge of it 00:53:39.960 --> 00:53:41.159 but the emails come our 00:53:41.159 --> 00:53:45.150 way and so we need to be able to have documentation and we 00:53:45.150 --> 00:53:46.199 put up the signs 00:53:46.199 --> 00:53:50.210 and we do stuff that's uncharacteristically above and 00:53:50.210 --> 00:53:50.800 beyond 00:53:50.800 --> 00:53:54.170 because we need to because those emails are coming whether 00:53:54.170 --> 00:53:55.360 you like it or love it 00:53:55.360 --> 00:53:58.010 it's coming and so you need to be able to address those and 00:53:58.010 --> 00:53:59.119 so while I agree 00:53:59.119 --> 00:54:03.840 with your your position I think the reality is I'm gonna 00:54:03.840 --> 00:54:04.760 get an email about 00:54:04.760 --> 00:54:07.739 it and I want to have it under our control to respond to 00:54:07.739 --> 00:54:09.320 that email not be 00:54:09.320 --> 00:54:12.769 subject to well I think this particular home builder that 00:54:12.769 --> 00:54:14.039 was sold three times 00:54:14.039 --> 00:54:17.809 over and conveyed to a different company maintain the 00:54:17.809 --> 00:54:18.960 records I'll reach out to 00:54:18.960 --> 00:54:22.949 them see if we can convert the laser fish to PDF I don't 00:54:22.949 --> 00:54:24.519 want to do that 00:54:25.360 --> 00:54:28.730 there as far as disclosures and the ability of private 00:54:28.730 --> 00:54:30.119 citizens to contract 00:54:30.119 --> 00:54:35.880 with private companies and and not have those unravel at a 00:54:35.880 --> 00:54:37.719 later date for a law 00:54:37.719 --> 00:54:41.090 that maybe wasn't in place at that time so I think mr. 00:54:41.090 --> 00:54:41.960 Hudson I think there's 00:54:41.960 --> 00:54:46.289 going to be a lot of going through that to try to get to 00:54:46.289 --> 00:54:48.039 where you want to and 00:54:48.039 --> 00:54:50.519 feel you need to be as a council person to be able to 00:54:50.519 --> 00:54:52.519 address these things but 00:54:52.519 --> 00:54:57.199 I don't know that the city has control over all of those 00:54:57.199 --> 00:55:01.760 levers Jim yeah 00:55:01.760 --> 00:55:07.190 turn on this is strictly a request residential this would 00:55:07.190 --> 00:55:08.039 be strictly a 00:55:08.039 --> 00:55:12.570 request from a developer not something that the city could 00:55:12.570 --> 00:55:13.280 go back to a 00:55:13.280 --> 00:55:19.159 developer and say hey we want you to do a fit that's right 00:55:21.559 --> 00:55:26.840 sure from this council session generally every council 00:55:26.840 --> 00:55:28.079 member was in favor of 00:55:28.079 --> 00:55:33.239 some sort of notification beyond and above and until you 00:55:33.239 --> 00:55:34.519 sit in the seat that 00:55:34.519 --> 00:55:38.570 we sit in it's going to be hard to explain why why we feel 00:55:38.570 --> 00:55:39.239 that way 00:55:39.239 --> 00:55:41.480 especially because the seat that you sit in and the 00:55:41.480 --> 00:55:42.800 requirements that you know 00:55:42.800 --> 00:55:46.440 that you have to do but I just wanted to say that that was 00:55:46.440 --> 00:55:49.679 generally an overall 00:55:49.679 --> 00:55:55.519 idea and everybody was pretty much in favor of the notice 00:55:55.519 --> 00:55:56.320 for the giving a 00:55:56.320 --> 00:55:59.840 notice to somebody that's buying a lot in a residential 00:55:59.840 --> 00:56:01.199 neighborhood that's in 00:56:01.199 --> 00:56:06.400 a pin is a good idea the city taking the responsibility of 00:56:06.400 --> 00:56:07.480 doing that is a bad 00:56:07.480 --> 00:56:11.670 idea because logistically doing that at the time somebody's 00:56:11.670 --> 00:56:12.400 doing that I would 00:56:12.400 --> 00:56:14.800 like for somebody on council to walk me through how that's 00:56:14.800 --> 00:56:15.719 going to happen when 00:56:15.719 --> 00:56:18.619 I'm buying a house that's what I do every day I'm just 00:56:18.619 --> 00:56:19.760 telling you right 00:56:19.760 --> 00:56:23.880 there so if the developer is gonna do that that's great 00:56:28.119 --> 00:56:31.719 not how I read it in when I read there so the city was 00:56:31.719 --> 00:56:33.320 gonna notify our 00:56:33.320 --> 00:56:37.440 residential no the can I read you let me read you the way 00:56:37.440 --> 00:56:38.199 that it's phrased in 00:56:38.199 --> 00:56:40.960 here it says the the development agreement shall include 00:56:40.960 --> 00:56:41.360 notice 00:56:41.360 --> 00:56:45.329 requirements to purchasers of the pit to purchase to purch 00:56:45.329 --> 00:56:47.320 asers who would be have 00:56:47.320 --> 00:56:51.719 a pit assessment that exceed the minimum notice required by 00:56:51.719 --> 00:56:52.659 the Texas property 00:56:52.659 --> 00:56:56.059 code so the developer will be asked to give additional 00:56:56.059 --> 00:56:57.039 notice it will be part 00:56:57.039 --> 00:56:59.989 of the development agreement and this is only in the case 00:56:59.989 --> 00:57:02.119 of residential pits so 00:57:02.119 --> 00:57:04.670 I would recommend we change the general language to require 00:57:04.670 --> 00:57:05.480 the developers to 00:57:05.480 --> 00:57:10.019 give notice okay I can do that well we're looking I'm just 00:57:10.019 --> 00:57:11.239 looking at the 00:57:11.239 --> 00:57:13.840 summary but 00:57:18.480 --> 00:57:20.039 yeah I don't think we have an issue with the way that it's 00:57:20.039 --> 00:57:21.760 phrased in the 00:57:21.760 --> 00:57:24.980 agreement it puts the onus on the developer it says this 00:57:24.980 --> 00:57:25.639 will be part of 00:57:25.639 --> 00:57:28.719 the developer agreement 00:57:31.559 --> 00:57:35.699 anybody else have any other questions we're gonna be asked 00:57:35.699 --> 00:57:36.360 to make a 00:57:36.360 --> 00:57:40.440 recommendation when we go into our regular meeting on if we 00:57:40.440 --> 00:57:40.760 want to 00:57:40.760 --> 00:57:46.019 recommend this as presented or not so we think about one go 00:57:46.019 --> 00:57:46.320 into our regular 00:57:46.320 --> 00:57:50.170 meeting we're in a work session meeting right now we have 00:57:50.170 --> 00:57:51.199 to go out of the work 00:57:51.199 --> 00:57:55.760 session and go into a regular meeting 00:57:57.239 --> 00:58:05.519 anything else all right we are now yeah thank you Caroline 00:58:05.519 --> 00:58:06.440 ready to go into our 00:58:06.440 --> 00:58:10.619 regular meeting and consider the minutes of our April 11th 00:58:10.619 --> 00:58:13.239 2018 meeting 00:58:13.239 --> 00:58:20.789 okay and I was absent at that meeting also so we need to 00:58:20.789 --> 00:58:21.960 show that I was 00:58:21.960 --> 00:58:37.760 absent and Jim was absent it is towards the back 00:58:51.960 --> 00:58:54.960 okay 00:59:13.559 --> 00:59:23.329 so I had Jim and Marty is absent any other comments on the 00:59:23.329 --> 00:59:24.159 minutes from our 00:59:24.159 --> 00:59:32.730 April meeting if not I would take a motion I move that the 00:59:32.730 --> 00:59:33.559 minutes be 00:59:33.559 --> 00:59:38.119 accepted as presented as amended maybe excuse me as amended 00:59:38.119 --> 00:59:40.000 thank you second 00:59:40.000 --> 00:59:45.159 the motion and a second all those in favor say aye aye any 00:59:45.159 --> 00:59:48.000 opposed all right 00:59:48.000 --> 00:59:51.519 we need to consider a recommendation to the City Council 00:59:51.519 --> 00:59:53.000 regarding approval of 00:59:53.000 --> 00:59:57.480 the revised public improvement district guidelines 01:00:00.480 --> 01:00:05.880 accept that we recommend the approval of their revised 01:00:05.880 --> 01:00:07.159 public improvement 01:00:07.159 --> 01:00:12.750 district guidelines as written with the comments shared 01:00:12.750 --> 01:00:14.719 regarding putting that 01:00:14.719 --> 01:00:21.840 onus of the notice provision on the developer 01:00:25.920 --> 01:00:31.260 you may want to have any more discussion on that we got a 01:00:31.260 --> 01:00:33.079 motion and a second 01:00:33.079 --> 01:00:37.960 all those in favor say aye I just wanted to thank you for 01:00:37.960 --> 01:00:39.079 your comments 01:00:39.079 --> 01:00:43.440 angel as well anytime we're putting the city at risk it's 01:00:43.440 --> 01:00:45.039 nice to hear somebody 01:00:45.039 --> 01:00:48.590 stand up and hear those other perspectives for sure so I 01:00:48.590 --> 01:00:49.519 appreciate 01:00:49.519 --> 01:00:58.320 the comments all those in favor say aye aye any opposed 01:00:58.320 --> 01:01:01.239 motion is unanimous we 01:01:01.239 --> 01:01:08.739 have staff reports a couple of follow-up items I will 01:01:08.739 --> 01:01:10.320 briefly touch on these and 01:01:10.320 --> 01:01:16.510 would be glad to answer any questions we did provide an 01:01:16.510 --> 01:01:19.559 update for you on the TW 01:01:19.559 --> 01:01:23.750 women in business grants 10 business owners have been 01:01:23.750 --> 01:01:25.840 selected to receive 01:01:25.840 --> 01:01:30.179 $5,000 grant each and there's a list of the businesses 01:01:30.179 --> 01:01:31.880 provided for you in your 01:01:31.880 --> 01:01:34.949 backup there were five new businesses and five existing 01:01:34.949 --> 01:01:35.960 businesses that are 01:01:35.960 --> 01:01:40.320 expanding two of the new businesses are from Denton or in 01:01:40.320 --> 01:01:41.920 Denton and one of the 01:01:41.920 --> 01:01:46.639 expanding businesses is in Denton and TW you folks let us 01:01:46.639 --> 01:01:47.800 know that the 01:01:47.800 --> 01:01:51.099 recipients finished their grant training course on April 17 01:01:51.099 --> 01:01:52.119 th and there will be a 01:01:52.119 --> 01:01:56.719 graduation ceremony in the near future we also provided a 01:01:56.719 --> 01:01:58.039 little bit more 01:01:58.039 --> 01:02:02.010 information about the amphitheater inquiry parks and rec 01:02:02.010 --> 01:02:03.199 staff did confirm 01:02:03.199 --> 01:02:07.050 that they're confirmed that an amphitheater is not on any 01:02:07.050 --> 01:02:07.679 of their 01:02:07.679 --> 01:02:12.590 capital project lists at this point in time I did confirm 01:02:12.590 --> 01:02:14.239 with razor ranch with 01:02:14.239 --> 01:02:17.579 red development that they are still planning a central 01:02:17.579 --> 01:02:18.800 courtyard with the 01:02:18.800 --> 01:02:22.099 performance stage and seating and I included a couple 01:02:22.099 --> 01:02:23.880 pictures in there from 01:02:23.880 --> 01:02:28.619 one of their similar developments in Phoenix that shows a 01:02:28.619 --> 01:02:29.960 concert being 01:02:29.960 --> 01:02:35.289 performed at that performance venue we also included the 01:02:35.289 --> 01:02:37.599 March Stan report the 01:02:37.599 --> 01:02:43.539 April request for information summary from the city as well 01:02:43.539 --> 01:02:44.719 as a year-to-date 01:02:44.719 --> 01:02:48.639 summary of the city's direct leads that was requested last 01:02:48.639 --> 01:02:49.639 time which the 01:02:49.639 --> 01:02:54.639 summary list and we'll add to that as new leads come in to 01:02:54.639 --> 01:02:56.000 us directly and 01:02:56.000 --> 01:03:00.369 then there's also the May 2018 chamber activity report as 01:03:00.369 --> 01:03:03.039 exhibit five so would 01:03:03.039 --> 01:03:06.480 be glad to answer any questions if anybody has any about 01:03:06.480 --> 01:03:08.400 those materials 01:03:08.400 --> 01:03:28.239 on the great business leader for yes we will add it we're 01:03:28.239 --> 01:03:30.480 working with the in-house 01:03:30.480 --> 01:03:35.550 system that we developed to track and monitor our leads as 01:03:35.550 --> 01:03:36.559 well as our 01:03:36.559 --> 01:03:39.980 performance metrics for the city so I appreciate everybody 01:03:39.980 --> 01:03:41.159 's patience with us 01:03:41.159 --> 01:03:43.840 as we try to pull out reports and make sure that we're 01:03:43.840 --> 01:03:45.320 inputting information in 01:03:45.320 --> 01:03:49.039 a way that is going to allow us to get them out so we will 01:03:49.039 --> 01:03:51.159 make that tweak 01:04:06.559 --> 01:04:11.079 bigger percentage of it is coming from residential versus 01:04:11.079 --> 01:04:15.239 commercial and industrial and the 01:04:15.239 --> 01:04:19.940 sustainability of continued residential growth without an 01:04:19.940 --> 01:04:21.639 influx of industrial 01:04:21.639 --> 01:04:24.860 and commercial growth we're not going to be able to grow 01:04:24.860 --> 01:04:27.199 our jobs base and our 01:04:27.199 --> 01:04:31.539 wage base the way we need to so that's one of the focuses I 01:04:31.539 --> 01:04:33.440 think this group has to really 01:04:33.440 --> 01:04:38.000 hammer on how do we get that that level of good growth in 01:04:38.000 --> 01:04:39.599 the city so that we 01:04:39.599 --> 01:04:44.260 can flip that tax base around and you're looking at page 14 01:04:44.260 --> 01:04:45.960 1 of the stand report 01:04:45.960 --> 01:04:49.750 the commercial growth the valuation trends okay just for 01:04:49.750 --> 01:04:50.320 everybody's 01:04:50.320 --> 01:04:56.789 information I agree with that I think some of that I think 01:04:56.789 --> 01:04:57.599 that numbers 01:04:57.599 --> 01:05:00.369 getting wider because of the apartment growth which is in 01:05:00.369 --> 01:05:01.760 the residential which 01:05:01.760 --> 01:05:04.679 we still don't want to rely on apartments to pay all of our 01:05:04.679 --> 01:05:05.920 taxes good 01:05:05.920 --> 01:05:13.880 point the apartment owners makes apartment rents higher I 01:05:13.880 --> 01:05:15.159 think we got 01:05:15.159 --> 01:05:21.920 somehow reverse some of the thinking in within the city 01:05:21.920 --> 01:05:24.559 itself though too I hear 01:05:24.559 --> 01:05:27.900 a lot of people talking about commercial development and if 01:05:27.900 --> 01:05:29.239 we build houses we'll 01:05:29.239 --> 01:05:32.380 get more development but you're not getting the level of 01:05:32.380 --> 01:05:33.519 job growth that you 01:05:33.519 --> 01:05:37.280 need at the correct wage rate commercial development is not 01:05:37.280 --> 01:05:38.280 going to pay what you 01:05:38.280 --> 01:05:42.960 really need to be paid you're going to end up with a ten to 01:05:42.960 --> 01:05:43.599 twelve dollar an 01:05:43.599 --> 01:05:45.880 hour job 01:05:53.440 --> 01:06:02.800 at one time we had a number of quasi dormitories 01:06:03.480 --> 01:06:11.400 refrains that apartments disguised as dormitories which 01:06:11.400 --> 01:06:13.639 were escaping the 01:06:13.639 --> 01:06:18.179 taxation because they were dormitories well what happens is 01:06:18.179 --> 01:06:18.840 is you have a 01:06:18.840 --> 01:06:21.860 private developer come in and develop and build it and then 01:06:21.860 --> 01:06:22.599 the university 01:06:22.599 --> 01:06:28.400 purchases well as I said apartments disguises dormitories 01:06:28.400 --> 01:06:29.960 and so you lose the 01:06:29.960 --> 01:06:33.760 tax base on that but you have the number of services that 01:06:33.760 --> 01:06:34.599 are still you know in 01:06:34.599 --> 01:06:41.099 demand there and so you know to me that's a challenge you 01:06:41.099 --> 01:06:42.079 know where you 01:06:42.079 --> 01:06:46.199 have all the services that are demanded but there's no tax 01:06:46.199 --> 01:06:47.880 base there and then 01:06:47.880 --> 01:06:52.980 to your point Jim you know I just appreciate you kind of 01:06:52.980 --> 01:06:54.079 sounding the 01:06:54.079 --> 01:06:56.789 trumpet again that we really have to do a better job of 01:06:56.789 --> 01:06:58.239 making sure that we're 01:06:58.239 --> 01:07:03.179 attracting and focusing on businesses that will come and 01:07:03.179 --> 01:07:04.360 make an impact here 01:07:04.360 --> 01:07:06.760 in the community 01:07:10.480 --> 01:07:17.000 anything else anybody have any items up for agenda for the 01:07:17.000 --> 01:07:17.760 next meeting which is 01:07:17.760 --> 01:07:24.239 in June I will not be in town 01:07:47.760 --> 01:07:55.940 I'll be at a conference I should be here I should be here I 01:07:55.940 --> 01:07:56.639 'll let everyone know 01:07:56.639 --> 01:08:06.039 today I'll find out everybody notice all right we'll call 01:08:06.039 --> 01:08:07.199 this meeting adjourned 01:08:07.199 --> 01:08:10.719 thanks for being here 01:08:18.359 --> 01:08:20.399 you 01:08:47.960 --> 01:08:50.020 you 01:09:17.880 --> 01:09:19.920 you