Aug 14, 2017 Public Utilities Board on 2017-08-14 9:00 AM

August 14, 2017 Public Utilities Board 14372

Meeting Details
Meeting Date: August 14, 2017
Board: Public Utilities Board
Video ID: 14372
Has Transcript: Yes
Has Agenda: Yes
AI Summary by Dentron 3000

Meeting Summary: Public Utilities Board Date: August 14, 2017 Location: City Hall Council Work Session Room, Denton, Texas

Key Topics and Discussions - DME Community Sponsorship Program: Staff reported that Denton Municipal Electric (DME) currently allocates approximately $100,000 annually for community sponsorships, with actual expenditures ranging from $42,000 to $64,000. The Board discussed transitioning from an informal internal approval process to a formalized program with clear selection criteria, potentially integrated into the annual budget cycle. - Target Corporation Solar Interconnection: Staff presented an interconnection agreement for a 660 kW rooftop solar photovoltaic system at a Target retail facility. Discussion covered grid safety protocols, the interconnection study results, and the distinction between interconnection approval and future power purchase agreements. Board members noted the increasing trend of commercial solar installations. - CNG Fueling Facility: Staff provided an update on fueling options for the city’s 24-vehicle CNG fleet. After evaluating the cost and logistical challenges of using distant retail stations versus constructing a dedicated facility, staff recommended a city-use-only CNG station at the renewable fuels island. The recommendation cited a $1.13 million investment, a projected two-year return on investment, reduced operational costs, and improved fuel handling efficiency. - ACM Updates: Staff presented administrative adjustments to water fee ordinances based on the Consumer Price Index and Dallas water rates. Staff also provided an informational briefing on Senate Bill 1004, a state law effective September 1, 2017, requiring municipalities to permit small cellular antenna installations on public right-of-way under state-prescribed fees and strict approval timelines. - New Business: Board members requested a report on existing rooftop solar installations, current power purchase rates, and a review of the solar rebate ordinance, specifically regarding battery storage provisions.

Motions, Votes, and Outcomes - Consent Agenda Item A (PUB17-163): Motion to approve a Professional Services Agreement with D&S Engineering Labs for landfill inspections and materials testing (not to exceed $78,310). Motion carried. - Consent Agenda Item B (PUB17-167): Motion to recommend adoption of an ordinance authorizing an interconnection agreement with Target Corporation for a 660 kW solar system. Motion carried. - Individual Item A (PUB17-170): Motion to approve the July 24, 2017 meeting minutes. Motion carried. - Individual Item B (PUB17-174): Motion to recommend approval of a city-use-only CNG fueling facility at the renewable fuels island. Motion carried. - Adjournment: Motion to adjourn the meeting. Motion carried.

Decisions Made - The Board directed staff to formalize the DME community sponsorship program by developing guidelines and an application process aligned with the annual budget cycle. - The Board approved the D&S Engineering Labs agreement for landfill construction inspections and testing. - The Board approved the Target Corporation interconnection agreement, noting that a separate agreement will be required for any future energy purchases. - The Board approved the recommendation to proceed with a city-use-only CNG fueling facility at the renewable fuels island. - The Board acknowledged the water ordinance rate adjustments and the implementation requirements of Senate Bill 1004.

Action Items or Next Steps - Staff to develop and present formal guidelines and an application process for the DME community sponsorship program for Board and City Council review. - Staff to prepare a separate power purchase agreement for the Target solar system for future Board consideration. - Staff to compile and present a report on existing rooftop solar installations, current power purchase rates, and a review of the solar rebate ordinance, including battery storage provisions. - Staff to provide a comparative fee analysis between state-prescribed cellular antenna fees and existing pole attachment fees. - Staff to forward the CNG fueling facility recommendation to the City Council for final approval.

Agenda Chapters
1. A. PUB17-171 Receive a report, hold a discussion and provide staff direction regarding the Denton Municipal Electric community sponsorship program.
0:02 - 8:49
2. A. PUB17-163 Consider recommending approval of a Professional Services Agreement (PSA) with D&S Engineering Labs of Denton, Texas to perform inspections and materials testing in the construction of Cells 3B, C, and D and associated site improvements of the City of Denton landfill, located at 1527 S. Mayhill Road, Denton, Texas, for an amount not to exceed $78,310.00. (PSA 6508)
8:49 - 9:48
3. B. PUB17-167 Consider recommending adoption of an ordinance of the City of Denton, Texas Authorizing the City Manager or his designee to execute an agreement for interconnection and parallel operation of distributed generation with Target Corporation for the installation of a solar photovoltaic system; and providing an effective date.
9:48 - 18:41
4. A. PUB17-170 Consider approval of the Public Utilities Board Meeting minutes of July 24, 2017.
18:41 - 19:07
5. B. PUB17-174 Receive a report, hold a discussion, and provide a recommendation regarding a compressed natural gas (CNG) fueling facility at the intersection of Mayhill Road and Spencer Road.
19:07 - 35:54
6. C. PUB17-173 ACM Update: 1. Water Ordinance Updates 2. Senate Bill 1004 (Small Cellular Antennas) 3. Matrix
35:54 - 49:10
7. 5. CONCLUDING ITEMS
49:10 - 50:34
Transcript
7514 words
First item on our agenda is we have a work session to receive report, hold a discussion, and provide direction regarding the DMV community sponsorship program and I think Brian Langley is going to lead us on that. Good morning. Brian Langley, Deputy City Manager. I want to spend a few minutes with you today talking about the community sponsorship program at DMV and try to get some direction from the PEB of how you'd like us to proceed. So just in terms of background DMV currently has approximately $100,000 budget ed for sponsorships on an annual basis in the budget. These funds are typically used for nonprofit organizations and sometimes other City Department events. The purpose really has been to provide a similar process to what is found in Iowa use, investor operated utilities or owned utilities. And so over the past few years DMV has spent between $42,000 to $64,000 annually on some of the sponsorships and in your backup I included a five-year history of those sponsorships by year. Other sponsorships for the city typically require City Council approval. So if you look at the agenda , for example for tomorrow's agenda for council, there are a couple of sponsorships for the Parks Department that's going forward to the City Council for approval and some in-kind sponsorships and some types of things that they're going to be doing for those events. These sponsorships also have an application process. There's some selection criteria and a formal agreement that's entered into the city and the other parties. DMV does not have any such formal process and only an internal approval process has been used. Very informal how it's been done. So in terms of the purpose of this meeting we're looking to get some direction from you on whether number one do you think this is a program that should be continued and if so we would like to present to you and the council proposed application and approval process for future events so that we can try to formalize this. This could be done where it was you would approve them on an individual basis or you could approve all of them at one time potentially. So with that I'll be happy to answer any questions that you may have. The rest of the money would go into the fund balance for DM V or could be used for other purposes in the budget. One of the slides earlier confused me. The DMV does not have an application process so which ones do have an application process that you referenced in one of the slides? The other departments that I've mentioned to you that we've seen they have a formal application process. The one I'm most familiar with is the hotel occupancy occupancy tax process so some of you may be familiar with that process around the city but there's a formal set of guidelines that are developed in an application process and all of the entities that want to receive those funds they submit an application it goes to a committee the committee tries to evaluate those and make a recommendation of which ones to fund and all of that comes as a slate to the City Council to approve. If we were to develop something could we have it part of the budgeting process that next year here are the sponsorships that we're going to have? I really didn't think any of these are inappropriate I mean they're giving back to the community so especially things like the tree giveaway well that helps shade your house so your house is more energy efficient you know we need to do those kinds of things so I'm in support of continuing this and if we need some guidelines that's appropriate too. Okay well we can certainly make it as part of the budget process and the hot funds process that I was mentioning to you that's exactly how that works is they come forward as part of the budget process and the council approves them as part of the annual budget so if that's something the PB would like to see we could certainly do it that way going forward. We just wanted to make sure that all of these were known they were clearly visible both the PUP the City Council and the public. We've seen this before yeah these have come to the public utility board and from what I understand that a lot of these came by our genes of various council members and perhaps the city managers and times past so it hasn't been a decision that's just been made by a little group at DME that it's come sort of from the community and I think I think as others have a process there should be a process but I'd like to see it continue if we didn't own our own utilities and we had a vendor in for the utilities that's what they do I understand CAHSER is quite heavily involved in some of the same things we are to a greater extent so I think it's a good program and I think the citizens deserve to be the benefit of these things. Yeah you know my comment would be that we need to be as you know consistent across across how we do it in the city but that you know being a municipally owned utility there is somewhat of a an obligation if you will that and I like Barbara I look down the list and there's a lot of recognizable nonprofits on here that are very deserving and I don't know that we want to get into every application but in the budget process it would be nice to have okay let's set out a criteria maybe philosophically here's what we're going to support these type of nonprofits it's you know it's got to be a community-wide benefit or something that benefits a community and let's use that as you know kind of the guidelines going forward so if y'all can come back with a recommendation on how that process is going to look through the budget process and you know if you're gonna including because once you do this it's going to open it up there's going to be a lot of people want to apply for a grant or a nonprofit believe me I probably get three or four solicitations a week from from good causes that some that you just have to okay here's what the dollars are let 's let's allocate that and let's let's go let's plan it going forward because a lot of the a lot of these nonprofits are going to want to plan much farther ahead than just week to week or month to month they want to know they want to be able to budget you know what's coming so any other comments on that now I'm in a total agreement I want to keep this program as much as possible and you know try to be as generous as possible to to a lot of these organizations I saw there were a couple that were not included in this year's budget I guess and I had some questions about that in particular like the Denton Public Library and there were a couple of others that I was kind of questioning why we weren't doing those this year since we had in years past because I felt like they were really good organizations to promote and to keep on board so but having a criteria across the board so that no one ever accuses us of you know playing favorites or you know favoritism or anything like that I definitely want to see that happen okay one of the things that I particularly like is the things that they have like the lineman rodeo and some things that the staff the people that do the work for us every day I think that's good for morale to have have that and I'd like to see that stay and the lineman's rodeo that helps our lineman be better and work safer in an outage so it it's an important thing for us to be supporting them in absolutely well if I if I've got your direction down then I'll bring back some some guidelines and application process for you I did want to mention that on tomorrow's council agenda we have the same work session to try to get their feedback and we'll bring something back based on your feedback in there to you okay okay thank you so much for your time thanks okay continuing now with the regular meeting we have the consent agenda we have two items on consent a and B years any any member who would like to have either of those pull for individual consideration be Brendan request item BB pool be be pulled okay any others no okay then is there a motion then to approve item a on the consent agenda motion second Barbara and a second Susan any discussion all in favor say aye any opposed same sign okay item number B Brendan I just kind of wanted a general overview of what the plan was what the project was I read through some of the detailed information that was provided but I just thought maybe general explanation of it I do have a very brief presentation if if you want me to go through that otherwise I I can just answer questions on that so the item that's before you is an interconnection agreement and with target this is actually the retail facility not the storage facility so this is on the retail facility on the loop so I can quickly go over this distributed generation interconnection process and the agreement with target our recommendation and sort of the steps and then if you have any questions that I don't answer in this please just shout them out in the process and typically when we have and distributed generation interconnections come to us they're small systems these are the solar systems that people are installing on their homes they're usually ranging in size from about four or five KW to maybe ten target system is to put that in perspective is 660 KW so it's a very large installation and we wanted to bring that forward to the pub one to make you aware of that - this is going to be part of our ongoing effort to make sure you guys are aware of these installations that are going on and make sure that you're on the process that we're going to be used so for this one in particular we wanted to make sure that you guys were aware these these agreements are typically executed by DME staff we're going to change the process a little bit and this this one was the first one up we thought this was a good one to bring forward to you and so when someone applies for interconnection it's simply a process by which they go through our engineering department they go through building inspections and we make sure that their systems are safe to interconnect with our grid and for this particular system we were required by the PUC to do an inter pre interconnection study and that's been finalized and basically what that said was it's safe their system design is safe and can interconnect and Brent maybe I don't know if you might be able to add anything on that I can't speak to the engineering side I apologize but and we did get the results from that study and it came back and they're good to go so they're going to be applying for their building permit probably this week if they haven't already and so the target system it will be the largest PV system within our service territory like I said it's 660 KW rooftop solar panels going in and for them the permitting process can't begin without the executed agreement and that's they actually can begin they won't be approved in the process until they have the executed interconnection agreement and so we recommend approval of this this agreement I'll add doesn't obligate the city to purchase any energy produced by the system will actually be coming back to you with a separate agreement and for that in the future so you have any questions beyond that sure I just wanted to know is this a trend that we're seeing this is our second large commercial installation so I would be hesitant to call it a trend right in general and the price of solar panels has come down drastically so the value that it's creating for customers is growing and so I definitely think that will continue to see commercial installations of larger scale maybe not this size although it wouldn't surprise me if we saw another retail facility that was a similar scale to a target a big-box store moving forward with this type of installation in the future you mentioned that we'll get another presentation regarding any purchase purchases of their power yes so typically on the smaller systems we have a rate that applies for the credits that are generated if this system pushes back any energy DME buys it and the particular terms of the interconnection agreement require any system that's over 50 KW to have a separate agreement the reason being is that it works a little bit different the rate can it can really be impacted by someone intentionally over sizing their system to generate a lot so we have to take a closer look at that but we're gonna come back with that just out of curiosity do we allow them to negotiate that right or do we just say right and this is how we talk with them about that and so for but for residential customers it 's just no it's that in there in the rate book yes sir but there is a reimbursement or a purchase we purchase some power from residents yes as well yes okay thank you I guess it's probably hard to make an estimate of what how much of the power out of this that we would actually be able to purchase until you really get into you know what what their usage is and all that but as a comparison 60 kilowatts I mean for instance what's the methane that we get off of methane out of the landfill that generates is that about 60 okay how does that transfer to 60 okay okay so 1500 even though it's large it's relatively I guess small because in the grand scheme of things but you know I'm like Lily I like the I like the trend and it's and I don't know that you could you could get enough rooftops in the city you know maybe we could use this as a model or whatever but if we're looking for solar power to purchase you know if we I just want to make sure that we're through our Emo I know we're buying bigger contracts of solar but at the same time if we can have some piece of that solar power that we're doing that are rooftops of some of the large buildings around town I think that'd be a great thing to pursue you know like I say it may not be it may not be in the grand scheme of things a large piece of it but at least it's some piece of it and it's it's something that benefits our our customers as well as it it adds more into our renewable portfolio that's that's kind of generated here at home so I like I like I like this type of deal we should use this to go out and you know maybe we should encourage more we agree we're very proud to have this system installed I think I'm noticing a lot more rooftops with solar panels on them now as I drive around seems like just the last few weeks there's been yes ma'am we've had a significant increase in the number of applications we've received in the last few years and we're very excited about that it'd be interesting to see the statistics of how it's increasing sure I don't is it in maybe nope not in this one but I can certainly bring that bring that back and we have that in another presentation I'll believe later today at committee on the environment so can help me to share that with you guys and with Tesla announcing their new solar roof I think we're gonna see a lot more of that yes we've had we've seen interest in that particular product already okay any other I was just gonna move for approval okay so we have a motion to approve and a second to recommend adopting an ordinance to execute the interconnection and parallel operation distributed generation with target and keep in mind this is only for that does not include any any purchase but just the ability to connect and to install it so motion is second any discussion the other discussion hearing none all in favor say aye any opposed same sign okay thank you very good okay items for individual consideration we have the public utility board minutes of July 24th 2017 these have been distributed in advance any corrections comments to these no hearing none then these will stand approved as submitted item number B is to receive report hold a discussion and provide recommendation regarding compressed natural gas fueling facility good morning I wanted to bring an update to the board we have been discussing the issue of the compressed natural gas fueling facility and the Associated Fleet out at a solid waste that has come before you on the 24th of July we took the same presentation to the council on July 25th and had a fairly lengthy discussion on the various options that were available council recommended that we pursue the compressed natural gas station for city of didn't use only option which was option three on the performance that we shared with you last time but they did request staff to first search for existing CNG stations if those happen to be around here in the city of Denton and so the closest existing station that we can find is in grapevine Irving area it's about a 40 mile round trip we did through our research find that there was a possibility of a Denton compressed natural gas station that would offer retail sales off of I 35 this is just in the formative stages right now but we thought that there was enough interest in that from our perspective to at least run some numbers on and see what that might look like for our particular fleet keeping in mind that we've got 24 vehicles and those vehicles are not known for their exceptional mileage and as a result running the numbers on those on a 20 mile round trip per vehicle on a daily basis putting in the staff time associated with that the depreciation of the vehicles themselves from the extra mileage ultimately ends up in about a 3.2 million dollar price tag before we are able to age the CNG fleet out so that we felt that that option is obviously more expensive than the option that we have on looking at the ability to construct a compressed natural gas station for didn't use at the existing renewable fuels island it also has some additional uncertainties associated with it and some risk one we don't know what this process project is even going to occur we do not know at this point what that fuel island would look like how many available fill-up opportunities there are on a per vehicle basis we would be in competition for it with anyone else that would actually be out there doing the fueling as well we did a staff time on that of a about 30-minute transit I think that's highly optimistic especially going down I 35 with that number of vehicles and and with the uncertainties associated with the number of pumps that would be available so we chose to not modify our recommendation based on this just due to those uncertain ties and also due to the overall cost so we had talked with y'all last time and kind of circle around this idea of the retail sales versus city of Denton use only we had talked about the last time about the complications associated with retail sales and I guess the only thing I'd like to add on top of that is that we at this point at least have some indication that we might have a retail competitor that would be much more favorably located and would be able to sell the fuel at a lower price than us that that to me means even less support from my perspective on the idea of having public retail sales for this fuel island so we are at this point recommending going forward with the city of Denton use only at the renewable fuels island we've talked in some detail last time about what this looks like from a monetary standpoint and basically we're looking at about a one point one three million dollar total investment that would allow us to basically age the fleet out and would also provide us some flexibility to keep the options available if C&G turns around or we make some other decisions but right now that is what staff is is recommending and I'd be happy to take any additional questions that you might have we'd like to get a formal recommendation from the board and if you're in support of this and then take that back to the City Council at the next opportunity so I'd be happy to answer any questions I'm sorry Brendan so the the fuel where so the fueling station would be where the landfill entrance is that's correct one is already that's correct and so is this I'm sorry I just have kind of a limited understanding of this is this is this fuel piped to a source or does somebody bring it and fill up a tank that resides right now we have a mobile fueling option but then the future in the future what we will have is a there is a connection point that we can actually access at 1001 Mayhill which is just down the road in fact if you drive down Mayhill you'll see two buildings sitting there and there's some yellow bollards that exist around a gas distribution point what we would do is we would basically locate the meter there and then there would be a line extended to the fueling station where there would be a all of the apparatus necessary to fuel the trucks so it would be coming out of a line and not being delivered at that whose line is that it is an atmosphere line okay right so we discussed last time the environmental differences between compressed natural gas right and diesel and it seemed like you know diesel the diesel was favored towards low ozone causing emissions is that correct the the the b20 blend that we use will produce slightly more nitrogen oxides than the compressed natural gas will so from an ozone standpoint it is just slightly worse from a green greenhouse gas standpoint though it is much better okay so that's that 's the the difference between the two so the compressed natural gas then is more harmful from the perspective of greenhouse gases is that what you're saying that that's correct so is there anything that we can do that can make sure that we don't you know that our trucks are burning it properly that we're handling it properly at the point and is there anything we can do to put pressure on the atmosphere to make sure that they're handling it properly I don't know if we can put pressure on atmosphere I think that there is certainly a an improvement in having a fixed fueling versus a mobile option just from the standpoint of connections and disconnects and the way the fuels handled etc so there 's a I would I would say from the standpoint of where we are today with the mobile fueling platform versus the the platform that we're putting in place we'll have less leak loss we'll have a better opportunity to top off the the truck so we can get the best mileage out of them possible so there's some there's some ancillary benefits from a operational standpoint as well as things like leak loss that will be improved by having a fixed station so and in emission control technologies are constantly evolving as well and so that I expect that as we move into the future there's possibilities to see that on both the biodiesel and CNG platforms sure and so how much longer will it take before our CNG trucks are you know phased out the the trucks themselves keeping in mind that the majority of them have been fairly recent purchases we're probably looking at a five to seven year age out on those and so it will if you look at the at the pro forma that we put together for them for the retail option that we just discussed where we're seeing a pretty substantial drop off about year five and then we've got a couple of vehicles that we feel would probably last another two years so we think by the time we get to about year seven from now we'll be through that that fleet and age them out. Okay and how long will the CNG set up last I mean what's the lifetime on that? I would think that from I don't know an exact answer on that but you're looking at decades at least for the line and then the actual equipment itself I don't know Nick if you've got a sense of that but I would I would expect just on a retail pump basis it lasts at least 10 to 15 years so yeah I'm getting a nod so that yeah. And then one final question is is there any way that that once we finished out with a CNG that it can be converted into a different type of line? I would think probably not just simply because of the construction for it but keep in mind that that's a full-service fueling facility already and so we have options of E85 gasoline and biodiesel there already on site so the fueling station itself would certainly still be usable and it would really depend if we have any additional equipment or make some other decision in the future as to whether we would use that compressed natural gas component. I've got a question about can you go back to the pro-former chart yeah yes okay so so really the difference in the public sales is a $600, 000 grant from TCEQ yes you're basically looking at the differential between the money that we would have to pay back which is $201,000 and the additional money that remains which is $398,000 there's a slight differential in the franchise fee not much. But I don't see any operation as any O&M expense associated with the public sales there would be some of that absolutely yes absolutely so that difference could be that kind of looks like the only difference is we've got to send a check back to TCEQ and that's the only difference it 's really more than that because there's going to be some O&M cost to that as well. That's correct we we it's a little bit difficult having not been in the retail fuel business to put a put a number to that. We certainly anticipate that there'll be some administrative components associated with the cash handling side of it even though these are card reading pumps but the the other thing that we're a little bit concerned with as well is just the security of the facility. We feel at minimum we're going to need cameras we're going to perhaps have the the need to restrict access at certain times and so we we don't have a sense of what those expenses might look like but I would completely agree with you that gap is is probably much smaller in reality once you take those into consideration. You know it seems like if we're if we pull the trigger on the construction of the fueling the CNG fueling station that we're committed to using compressed natural gas in our fleet won't we since it's a 20-year asset and we're I mean it's I would not say it's going to be stranded cost if we don't. It will be it will be a stranded cost that is correct. If we choose to not have the additional fleet added then certainly that will be a stranded cost. I would totally agree it's a stranded cost I think the way I would probably encourage you to look at this though is there's probably about a two-year ROI. We're bleeding you know forty to sixty thousand dollars a month on this decision so if we've got five to seven years left of the fleet you've probably recouped this investment in a couple of years. Based upon our what we're paying now. Based upon what we're losing right now. Correct. And who knows what will happen in seven years maybe it'll be a great idea again. You don't know. Possibility. Okay any other questions? No. I had one thing Mr. Carroll last time asked about what the mobile options look like and so this is what the the actual truck is for doing the the mobile option. So the front part is a about 700 gallons worth of tanks. The back part with the C&G on it is a actually a mobile compressing unit that allows the filling of multiple trucks on a on a rapid basis. So this is this is an example of what's coming out to our side. These things are are very expensive and they also have limited fill capability due to the connections that that they require and so we we chose not to pursue this just from a monetary and operational standpoint. One more question. Sure. I'm sorry on the we comparing the cost of the actual trucks with compressed natural gas versus diesel is there a difference between the cost of the of the vehicles to use biodiesel versus what I'd call regular diesel because that's what we're picking up the the biodiesel is we're picking up the not the greenhouse gas but the nitrogen oxide savings I guess if you will reduction in that so is there a difference in the cost there? I don't I don't believe those platforms are different and I'm getting another nod suggesting that was a good guess. Okay. So okay any other questions? None. Is there a motion then to make a recommendation regarding the CNG fueling facility? I'll move approval. A motion from Susan and a second from Barbara. Any other discussion? It's kind of odd that we've ended up in a situation like this and so it's I'm reluctant to vote for it as reluctant as we were to even motion for approval on it but it seems like it's the best step forward and in the tight spot that we're in. I think the the reality is we have the best way to recover what our stranded cost is going to be at this point. I agree with Brandon. Okay I'll call the vote. All in favor say aye. Aye. Any opposed same sign. Thank you. Thanks Kenny. Thank you. Okay item C is ACM update. Mr. Chairman I believe there is a slight modification on the water or water fee ordinances. I don't know if it was Chuck or Kenny that's going to be presenting that. These two items are adjusted by either a consumer price index or as a percentage of the Dallas water rate and so they are basically a at the time that the information was presented to the board we did not have that information in hand. This is typically brought to you all around this time of the year to just let you know what we had put in the actual rate books and so the rate books that have gone forward to counsel for their evaluation have these corrected numbers in them. So this is a set 85% of Dallas. That's correct yes and the other rate is just simply a consumer price index adjustment. Right okay thank you. And the next item is a excuse me is regarding Senate bill 1004. This is a new law that the governor Abbott recently signed back in early June that that will be that affects all cities within the state of Texas and what it is is is basically allowing allowing the cellular industry to install radio antennas on city right-of-way whether it be utility poles, traffic signal poles, or erect their own poles as needed within the community. The issue is that the cellular industry is indicating that they need additional coverage due to public demand of their services, wireless services, and they see this as as an easier and and also cheaper opportunity in which to do so. So they were able to get some legislation passed in the most recent legislative session and it goes into effect September 1st. All cities around the state of Texas are doing this very same thing. So this information is just being presented to you today. It's been presented to the was was presented to the Planning and Zoning Commission last week. It'll be also presented to the Historical Land mark Commission this this evening as well with ultimately being presented to the City Council for ordinance adoption on the 22nd of August. So we're ramping up internally as far as our staff working with our engineering folks, the folks at DME, the folks in our Public Works Department from an inspections perspective, and so we anticipate about 125 of these devices to be installed over the next six months with potentially another 35 or so over the next three years within Denton. Wow. So in your packet there's a memorandum along with the presentation to kind of give you an idea of what those what those those devices look like. There is one of the issues that we have had is the fact that the the industry this other industry is wanting to put these devices within the city's right-of-way at a very inexpensive cost to them and so that is a little bit of a level of consternation amongst the cities. The the city of McAllen down in South Texas is potentially wanting to sue the state of Texas to to stop this piece of legislation or at least to slow it down to assist us or assist cities and trying to seek additional compensation. Some cities for the example city of Dallas, city Arlington, and other cities around the state were averaging around $2,500 per node or per cellular device and so they're at $250 per cellular device. So very different scale in far as compensation for the use of the city's right-of-way. So that isn't a lawsuit that we're looking at or at least from the standpoint of just visiting with the folks in McAllen and our city attorney's offices involved with that. So it's still in the works but we are marching ahead with implementing this this law for September 1st. We have to be ready because the industries are coming. Verizon, T-Mobile, AT&T, they have been talking to staff for the last number of weeks about this legislation so we're geared up for it and we'll be ready to go. Yes, Barbara. Are they going to be paying a fee per installation for using the right-of-way? Yes ma'am. The way the legislation is written is the company when they make an application they can they can they can bundle these devices up to five per application so they 'll be charged a maximum of $500 per bundle and then each device above that is $250. So but what they're doing for example one company is looking at potentially doing 55 units so what they'll be doing is just submitting 11 sets of five at $500 a piece. Is this just a one-time fee or is this per month? No ma'am or yes it's a one-time fee initially for the permit and then there'll be a small rental charge that they can that the cities can charge but it's all legislative and it's all it's prescribed the maximum amount the city can charge. The other thing with the with the legislation it sets up time clocks so once the application is made by the industry then the city has to deem whether or not it 's appropriately completed as far as the application process and once that happens then a series of it then it's dictated by the amount of time the city can can issue the permit. So it's very prescribed in the way it's done so it 's heavily favored in the in the telecom industry. Is there is there a policy I 've I've been in another city recently and I've seen on their water towers there are numerous devices like this is there is that a city policy we don't have any on ours how does that happen? Typically in the cities that I've worked in there are policies and those are leases that are that are negotiated on an individual basis not knowing what Denton has done in the past I can't speak to that but I know in the previous cities that I've worked for it's been on a case-by-case basis and so a lot of times some cities don't want any of those devices on those water towers just for the structural integrity of them some cities see that as a revenue opportunity. I think Tim has a comment. We've had these requests before and we have basically turned them down some of it's a security issue because you've got to start opening your facility up for mobile access so sometimes when you're doing a security audit there's a little concern of you know how many people can access these sites. Right now the only thing that we have on our towers is dedicated microwave or licensed radio for our own SCADA system so they're dedicated so I think if you drive around the Metroplex you'll see some communities with probably an excessive proliferation I'll pick on a tower I drove by on Roanoke where it looks more like a communication tower than an elevator. But right now we don't have right now we have none on any of our towers. Okay thank you . Yes. How does the the app was in an application fee and then a monthly fee I guess how does that compare to other things that are co-located on on telephone poles right now? Like pole attachment? Yes. Yeah. As far as how it's done today. No just the price comparison. Fees like our fee schedule yeah current fee schedule. I'd have to find that out but but as far as but the fee schedule that they're prescribed here in in in the law it's pretty low. Right. But I'll have to find it. I don't know. We can put something together that answers that what our other various fees are for the pole attachments and give you some context. And then in neighborhoods where we're trying to push we're spending money to put electrical lines underground are they going to be allowed to come in and put a pole in and put their device on if we're trying to make it a wireless neighborhood so to speak? Actually no there is some provisions when the law that that does not allow them to install new poles within their residential subdivision or even in some of the parks they can attach it to existing poles that are within residential areas but not add new ones just to avoid the visual clutter or some of the very things you described. So there are some things that that that gives cities a little bit of leverage as far as where they can and can't go but but it's again heavily favored in the in the industry's favor. Well that's a good point because if we if we have a for instance we're looking to take utilities underground where there is existing poles and there's something attached to it then who does that just go away or do we have to accommodate that and that's and that may be something we'll have to cross that bridge when we get to it because I don't I don't know not having read the legislation and it may change out of the lawsuit there may be some compromises or whatever as that comes along. And to that point if we know we might be going underground in an area can we under the law say no you're not gonna attach to that pole at this point or? At this point I think it's I think the law is silent on that but we can we can check that and make that and let you know but again it's yeah there are a lot of things with with there's more a lot more questions that are being asked from city to city because this is a very new thing and just how prescribed it is by the state so before cities had a lot more leverage as far as you could come into our communities based on certain fees that you would pay but this is a one-size-fits-all for the city of Texas. And so we should see our cell phone bills come down right? Yeah right. Okay any other we look forward to future updates on this and where it's going but nobody likes being restricted and being told what you got to do. Hopefully there will be some local control still maintained in this. Any other comments on the new business action items? Can we get a review or report of our existing rooftop solar installation? Not necessarily the commercial part although if there are more than this one target one it'd be nice to know about them and specifically I'd like to know what rate we're buying that power back at. Have we actually bought any power back and have we spent any money buying power back from those rooftops? I would also like us to review the ordinance that we seems like we recently passed or proposed an ordinance that would change the rebate structure and also it included something about battery systems as well. I just wanted to know see if we could review that since the light has changed a little bit. Yeah I think this and it may be it may have been last year we was the first time we had in our rate ordinance that the rebate there was two two rebate levels one was without battery storage and one was with battery storage and I think that's the way we still have it today but yeah that'd be great. And see if we may have limited what we could be doing in that area for no apparent reason. Okay okay anything else we want to sell in the new business matrix? Okay all right completing items any future agenda items that any any board member would like to see? We've kind of gone through the new business stuff so all this any any general comments? No? Well and I promised her I wouldn't do it but I just can't help I want to this is the time of the meeting that we can do things like this. I'm just want to thank Barbara for your service over the years and I don't know what you're gonna do every other Monday now you're gonna have a lot of you know half a day I'm sure you 'll find something to fill that time but thank you very much appreciate it. At the same time I want to recognize I noticed we have our newest member Deborah Arm antars here she has not been sworn in yet I guess that happened I'm sure that 'll happen within the next two weeks so next meeting we'll see you up here and look forward to it. So with that is there a motion to adjourn? So moved. Second . All in favor say aye. Aye. Any opposed? Same sign. Thank you.
Agenda
3 pages
City of Denton City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Meeting Agenda Public Utilities Board Monday, August 14, 2017 9:00 AM Work Session Room After determining that a quorum is present, the Public Utilities Board of the City of Denton, Texas will convene in a meeting on Monday, August 14, 2017 at 9:00 a.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION A. PUB17-171 Receive a report, hold a discussion and provide staff direction regarding the Denton Municipal Electric community sponsorship program. Attachments: Exhibit 1 - Sponsorship Program List 2012-2016 Exhibit 2 - Sponsorship Presentation The Public Utilities Board (PUB) will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. When items for consideration are not listed under the Closed Meeting section of the agenda, the PUB will not conduct a Closed Meeting and will immediately convene its open meeting. The PUB reserves the right to adjourn into a Closed Meeting on any item on its open meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. REGULAR MEETING 1. CONSENT AGENDA Each of the items on the Consent Agenda is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the Assistant City Manager of Utilities, or his designee, to implement each item in accordance with the Staff recommendations. The Public Utilities Board has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved for payment or other action under the Consent Agenda (Agenda Items A – B). This listing is provided on the Consent Agend…

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