1 00:00:00,000 --> 00:00:05,839 April 9th 2018 public utilities board meeting to order and 2 00:00:05,839 --> 00:00:08,080 first on our agenda 3 00:00:08,080 --> 00:00:13,560 is we have a work session with a couple of items. Item A is 4 00:00:13,560 --> 00:00:15,080 to receive a report 5 00:00:15,080 --> 00:00:18,050 hold a discussion give staff direction regarding the 6 00:00:18,050 --> 00:00:19,199 location of the Ditten 7 00:00:19,199 --> 00:00:33,960 Municipal Electric Mayhill substation easement. Well good 8 00:00:33,960 --> 00:00:35,159 morning members of the 9 00:00:35,159 --> 00:00:37,219 board my name is Ethan Cox I'm the director of solid waste 10 00:00:37,219 --> 00:00:37,799 for the city of 11 00:00:37,799 --> 00:00:40,719 Denton. We have a joint presentation for you this morning I 12 00:00:40,719 --> 00:00:41,399 'll be accompanied by 13 00:00:41,399 --> 00:00:44,929 Brent Heath from DME shortly. We're gonna be talking a 14 00:00:44,929 --> 00:00:46,280 little bit about the Mayhill 15 00:00:46,280 --> 00:00:50,020 substation and just to kind of refresh everyone's memory DM 16 00:00:50,020 --> 00:00:51,640 E has basically gone 17 00:00:51,640 --> 00:00:55,200 through a public input process in the 2013 to 2015 time 18 00:00:55,200 --> 00:00:56,240 frame and a site was 19 00:00:56,240 --> 00:00:59,810 selected for a substation that basically serves the Mayhill 20 00:00:59,810 --> 00:01:00,880 area. The proposed 21 00:01:00,880 --> 00:01:03,009 site at the time was approved through PUB and council and 22 00:01:03,009 --> 00:01:03,640 it was actually 23 00:01:03,640 --> 00:01:07,209 going to be located on landfill property. Thanks to some of 24 00:01:07,209 --> 00:01:08,560 our staff and our work 25 00:01:08,560 --> 00:01:10,810 with DME we've identified some issues with that location 26 00:01:10,810 --> 00:01:11,599 that we want to kind 27 00:01:11,599 --> 00:01:13,560 of bring to your attention this morning and then also 28 00:01:13,560 --> 00:01:14,480 request some direction 29 00:01:14,480 --> 00:01:18,219 from the board. So to start off I'm going to give you a 30 00:01:18,219 --> 00:01:19,599 little bit of an overview of 31 00:01:19,599 --> 00:01:23,340 the land that we have out at the landfill that's going to 32 00:01:23,340 --> 00:01:24,319 be affected by 33 00:01:24,319 --> 00:01:27,819 the substation site. As you may be aware we are actually 34 00:01:27,819 --> 00:01:29,000 going through an 35 00:01:29,000 --> 00:01:32,879 expansion permit through the TCEQ right now. Public comment 36 00:01:32,879 --> 00:01:33,680 period is going to be 37 00:01:33,680 --> 00:01:35,930 up in the spring time frame and we're hoping that we're 38 00:01:35,930 --> 00:01:36,680 actually going to be 39 00:01:36,680 --> 00:01:39,079 approved with a new permit in hand by the end of summer. 40 00:01:39,079 --> 00:01:40,280 Very long and arduous 41 00:01:40,280 --> 00:01:43,560 process but we're getting very near the finish line on that 42 00:01:43,560 --> 00:01:44,680 . The goal of that 43 00:01:44,680 --> 00:01:47,870 expansion permit was to increase our waste capacity for the 44 00:01:47,870 --> 00:01:49,200 community to an 45 00:01:49,200 --> 00:01:53,519 additional 50 plus years and what you have here on this 46 00:01:53,519 --> 00:01:54,719 right hand side is 47 00:01:54,719 --> 00:01:57,689 basically an aerial view if you kind of follow my mouse. 48 00:01:57,689 --> 00:01:59,879 Where's my mouse? I don't 49 00:01:59,879 --> 00:02:05,319 see it. There it is. All right there's my mouse. So we have 50 00:02:05,319 --> 00:02:06,560 basically 11 future 51 00:02:06,560 --> 00:02:08,370 landfill cells and I'm going to kind of orient you with 52 00:02:08,370 --> 00:02:09,240 what you're seeing here 53 00:02:09,240 --> 00:02:12,240 on this side. So Mayhill Road runs north to south right 54 00:02:12,240 --> 00:02:14,039 here. This is the entrance 55 00:02:14,039 --> 00:02:17,270 to our facility. You have the fueling island right here. Pr 56 00:02:17,270 --> 00:02:19,840 att Recycling, our 57 00:02:19,840 --> 00:02:22,909 home chemical collection building, our administrative 58 00:02:22,909 --> 00:02:24,080 offices and then if you 59 00:02:24,080 --> 00:02:26,840 follow this curve all of our existing landfill cells are 60 00:02:26,840 --> 00:02:28,280 down here to the south. 61 00:02:28,280 --> 00:02:32,530 So all these little rectangles where you see like 7a, 8a, 9 62 00:02:32,530 --> 00:02:33,319 a, all of those are 63 00:02:33,319 --> 00:02:36,419 future landfill cells that we would develop and serve as 64 00:02:36,419 --> 00:02:37,199 future waste 65 00:02:37,199 --> 00:02:42,960 disposal cells. Whenever the substation was brought to the 66 00:02:42,960 --> 00:02:44,080 board and the council 67 00:02:44,080 --> 00:02:47,960 previously DMU was operating under the assumption that none 68 00:02:47,960 --> 00:02:49,280 of the substation 69 00:02:49,280 --> 00:02:52,639 site would negatively affect any of these cell developments 70 00:02:52,639 --> 00:02:54,240 . They had the 71 00:02:54,240 --> 00:02:56,979 assurances of the prior director that that was the case. 72 00:02:56,979 --> 00:02:57,919 Unfortunately that's 73 00:02:57,919 --> 00:03:02,719 not the case whatsoever. Give you another visual here. This 74 00:03:02,719 --> 00:03:04,120 is actually an aerial 75 00:03:04,120 --> 00:03:09,310 same location. You can see the cells. This whole area kind 76 00:03:09,310 --> 00:03:10,199 of encapsulated in 77 00:03:10,199 --> 00:03:12,800 orange is all of our future landfill cells. Again Mayhill 78 00:03:12,800 --> 00:03:13,560 Road right here 79 00:03:13,560 --> 00:03:17,060 running north to south. The substation site as it exists 80 00:03:17,060 --> 00:03:18,439 today is proposed for 81 00:03:18,439 --> 00:03:21,639 this area right here. So you can see that number one that's 82 00:03:21,639 --> 00:03:22,680 going to cut out a bit 83 00:03:22,680 --> 00:03:26,020 of our access road, our entrance here. It's also going to 84 00:03:26,020 --> 00:03:27,479 essentially remove the 85 00:03:27,479 --> 00:03:29,810 home chemical collection building. So it would definitely 86 00:03:29,810 --> 00:03:30,560 have that impact on 87 00:03:30,560 --> 00:03:35,860 operations. These little red ridges here that ripple all 88 00:03:35,860 --> 00:03:36,759 the way to the top, what 89 00:03:36,759 --> 00:03:39,860 that is, that is our slope of the future landfill cells 90 00:03:39,860 --> 00:03:41,599 kind of at final cover. 91 00:03:41,599 --> 00:03:44,960 So the impact of having the substation at this location 92 00:03:44,960 --> 00:03:46,159 would be that we would 93 00:03:46,159 --> 00:03:49,669 essentially lose the use of almost two full cells and then 94 00:03:49,669 --> 00:03:50,919 you would also have 95 00:03:50,919 --> 00:03:54,120 because of drainage requirements a ripple effect that would 96 00:03:54,120 --> 00:03:54,919 impact as many 97 00:03:54,919 --> 00:04:00,039 as two or three other cells as well. As we identified that 98 00:04:00,039 --> 00:04:01,319 we felt like that's 99 00:04:01,319 --> 00:04:03,569 something worth discussion with the board as well as the 100 00:04:03,569 --> 00:04:04,360 council is what is 101 00:04:04,360 --> 00:04:07,330 the impact going to be on this. From a solid waste 102 00:04:07,330 --> 00:04:09,919 perspective DME paid solid 103 00:04:09,919 --> 00:04:14,879 waste about $775,000. That was for the home chemical 104 00:04:14,879 --> 00:04:18,629 collection building as well as the land that surrounds it. 105 00:04:18,629 --> 00:04:20,800 The impact to the 106 00:04:20,800 --> 00:04:23,769 airspace which is essentially the asset that is most 107 00:04:23,769 --> 00:04:25,759 valuable to a landfill that 108 00:04:25,759 --> 00:04:29,259 allows for future waste capacity. We'd be losing about 3.3 109 00:04:29,259 --> 00:04:30,839 million cubic yards in 110 00:04:30,839 --> 00:04:35,540 airspace. In effect we would be losing about nine or more 111 00:04:35,540 --> 00:04:36,319 years worth of 112 00:04:36,319 --> 00:04:39,689 effective capacity. Now again reminder that we were 113 00:04:39,689 --> 00:04:41,439 shooting for 50 plus years 114 00:04:41,439 --> 00:04:43,740 so we'd be losing about 20% of what we're trying to get in 115 00:04:43,740 --> 00:04:45,600 the new permit. The 116 00:04:45,600 --> 00:04:47,990 financial value if you want to put a number to that it's 117 00:04:47,990 --> 00:04:49,000 about 53 million 118 00:04:49,000 --> 00:04:52,500 dollars would be the value of the airspace lost if we value 119 00:04:52,500 --> 00:04:53,120 that at about 120 00:04:53,120 --> 00:04:56,949 $16 per cubic yard. Some of the operational impacts that I 121 00:04:56,949 --> 00:04:58,040 mentioned the 122 00:04:58,040 --> 00:05:01,420 new entrance or the entrance road again if you kind of come 123 00:05:01,420 --> 00:05:03,279 back here this road 124 00:05:03,279 --> 00:05:06,290 was going to be taking out. There was actually a capital 125 00:05:06,290 --> 00:05:07,240 project already 126 00:05:07,240 --> 00:05:09,949 underway to construct a new entrance road. Whenever we 127 00:05:09,949 --> 00:05:11,120 identified this that 128 00:05:11,120 --> 00:05:14,170 project was too far along for us to put the brakes on it it 129 00:05:14,170 --> 00:05:15,199 would in essence 130 00:05:15,199 --> 00:05:17,949 cost us more to stop and restore things to the way they 131 00:05:17,949 --> 00:05:19,360 were. So if you drive by 132 00:05:19,360 --> 00:05:21,879 our site now you'll see that road is almost finished in 133 00:05:21,879 --> 00:05:22,319 terms of 134 00:05:22,319 --> 00:05:25,399 construction. In terms of displacing the home chemical 135 00:05:25,399 --> 00:05:26,560 collection operation there 136 00:05:26,560 --> 00:05:28,889 was also a project on our books for about four to five 137 00:05:28,889 --> 00:05:29,920 million dollars for a 138 00:05:29,920 --> 00:05:32,560 new building. We've since pulled that out of our capital 139 00:05:32,560 --> 00:05:34,519 plan. Regardless of 140 00:05:34,519 --> 00:05:36,189 direction today we feel like we have some other 141 00:05:36,189 --> 00:05:37,079 alternatives that we can 142 00:05:37,079 --> 00:05:40,579 explore but there would be additional expense for solid 143 00:05:40,579 --> 00:05:41,839 waste to basically 144 00:05:41,839 --> 00:05:46,519 bring a building up to operational standards for the HCC. 145 00:05:46,519 --> 00:05:48,600 So ultimately just 146 00:05:48,600 --> 00:05:50,550 from an overview we feel like from a solid waste 147 00:05:50,550 --> 00:05:51,720 perspective this is worth 148 00:05:51,720 --> 00:05:54,740 exploring alternative sites or alternative solutions. I'm 149 00:05:54,740 --> 00:05:55,680 going to turn 150 00:05:55,680 --> 00:05:59,420 it over to DME. Number one I want to thank them for kind of 151 00:05:59,420 --> 00:05:59,879 working through 152 00:05:59,879 --> 00:06:02,329 this with us. This has not been a pleasant experience for 153 00:06:02,329 --> 00:06:03,000 anyone involved 154 00:06:03,000 --> 00:06:06,089 and ultimately they've had a lot of work that have led up 155 00:06:06,089 --> 00:06:07,279 to this point. We're 156 00:06:07,279 --> 00:06:09,279 operating under the assumption that this was not going to 157 00:06:09,279 --> 00:06:10,120 have the impact that is 158 00:06:10,120 --> 00:06:13,430 having. So I appreciate their partnership and before I step 159 00:06:13,430 --> 00:06:14,079 down are there any 160 00:06:14,079 --> 00:06:17,920 questions from a solid waste perspective? 161 00:06:19,639 --> 00:06:26,470 Questions? Can you put the one with the the tier back up 162 00:06:26,470 --> 00:06:28,279 there please? So 163 00:06:28,279 --> 00:06:34,040 basically taking out the southwest corner as you say has a 164 00:06:34,040 --> 00:06:35,000 ripple effect 165 00:06:35,000 --> 00:06:39,420 upon all those tiers and so that's really the impact. I 166 00:06:39,420 --> 00:06:41,920 mean it doesn't 167 00:06:41,920 --> 00:06:46,089 because we have buildings where those other cells are going 168 00:06:46,089 --> 00:06:47,240 to be. I assume those 169 00:06:47,240 --> 00:06:51,079 are going away or yeah go away under new permit. We haven't 170 00:06:51,079 --> 00:06:52,519 decided in terms 171 00:06:52,519 --> 00:06:55,579 of phasing or the kind of the approach that we'll have in 172 00:06:55,579 --> 00:06:56,399 terms of cell 173 00:06:56,399 --> 00:07:00,920 development. I'll use kind of this visual is what we will 174 00:07:00,920 --> 00:07:02,040 likely do is start with 175 00:07:02,040 --> 00:07:04,339 something like 8a whenever we get into these cells. Now 176 00:07:04,339 --> 00:07:05,120 this is going to be in 177 00:07:05,120 --> 00:07:08,319 the 2030 time frame mind you if we continue with our 178 00:07:08,319 --> 00:07:08,920 current level of 179 00:07:08,920 --> 00:07:12,660 growth and then we would start wrapping around again I lost 180 00:07:12,660 --> 00:07:13,759 my mouse but you 181 00:07:13,759 --> 00:07:17,079 would wrap from 8a to 9a to 10a and then come back around 182 00:07:17,079 --> 00:07:17,720 to where the last 183 00:07:17,720 --> 00:07:19,850 cells that you're filling are the ones that we would have 184 00:07:19,850 --> 00:07:20,560 to remove existing 185 00:07:20,560 --> 00:07:23,699 structures. You know one of the things when we talked to DM 186 00:07:23,699 --> 00:07:24,439 E was well how long 187 00:07:24,439 --> 00:07:27,029 does a substation really want to be there? Well it's it's 188 00:07:27,029 --> 00:07:27,800 kind of a permanent 189 00:07:27,800 --> 00:07:29,810 fixture once you put it in you may replace some of the 190 00:07:29,810 --> 00:07:30,639 components but you 191 00:07:30,639 --> 00:07:33,560 certainly don't want to be taking a substation out. So even 192 00:07:33,560 --> 00:07:35,120 if that's 50 60 193 00:07:35,120 --> 00:07:37,839 years down the road that's still not the the best decision 194 00:07:37,839 --> 00:07:38,879 was my understanding 195 00:07:38,879 --> 00:07:41,199 from them. 196 00:07:44,319 --> 00:07:49,480 So the picture with the contours on it is it so it's one it 197 00:07:49,480 --> 00:07:51,000 will eventually be 198 00:07:51,000 --> 00:07:54,750 one gigantic mound is that the deal? You develop the cells 199 00:07:54,750 --> 00:07:55,720 individually and then 200 00:07:55,720 --> 00:07:59,459 as you have slopes you can kind of infill in between those 201 00:07:59,459 --> 00:08:00,519 as more cells 202 00:08:00,519 --> 00:08:03,089 are developed. Is that what we're doing with the stuff just 203 00:08:03,089 --> 00:08:03,959 to the south too? 204 00:08:03,959 --> 00:08:07,439 Eventually that's the case. That'll be one giant mound. One 205 00:08:07,439 --> 00:08:07,879 of the cells that 206 00:08:07,879 --> 00:08:10,850 we're currently developing is actually in the middle of 207 00:08:10,850 --> 00:08:12,000 surrounding cells so 208 00:08:12,000 --> 00:08:14,389 you kind of build the border if you will around that and 209 00:08:14,389 --> 00:08:15,319 then you fill in in the 210 00:08:15,319 --> 00:08:18,589 middle. I guess I'm confused why we would start using this 211 00:08:18,589 --> 00:08:20,439 in 2030 if we really 212 00:08:20,439 --> 00:08:23,800 haven't done the infills or bringing it up to the new level 213 00:08:23,800 --> 00:08:25,199 that we've requested 214 00:08:25,199 --> 00:08:29,949 for that. That's correct and that 2030 is actually when we 215 00:08:29,949 --> 00:08:30,720 start finishing 216 00:08:30,720 --> 00:08:35,639 out the cells that we're currently in. And they'll be at 217 00:08:35,639 --> 00:08:36,440 their new the new 218 00:08:36,440 --> 00:08:40,009 requested level that we asked? That's something that's to 219 00:08:40,009 --> 00:08:41,000 be decided Mr. 220 00:08:41,000 --> 00:08:42,779 Carroll I mean that's something that we would certainly 221 00:08:42,779 --> 00:08:43,600 come back to the board 222 00:08:43,600 --> 00:08:46,940 and the council on is do we want to max out our height on 223 00:08:46,940 --> 00:08:48,360 our existing cells or 224 00:08:48,360 --> 00:08:51,059 do we want to have new development and kind of wrap around 225 00:08:51,059 --> 00:08:52,200 first. There's two 226 00:08:52,200 --> 00:08:54,070 schools of thought on that number one is you want to go as 227 00:08:54,070 --> 00:08:54,720 high as you can as 228 00:08:54,720 --> 00:08:58,220 fast as you can. There's also the school of thought that 229 00:08:58,220 --> 00:08:59,440 construction is never 230 00:08:59,440 --> 00:09:01,250 going to be cheaper than it is today so why not go ahead 231 00:09:01,250 --> 00:09:02,080 and start developing 232 00:09:02,080 --> 00:09:05,149 those cells and then we can grab that height later on. And 233 00:09:05,149 --> 00:09:07,159 so I think that's 234 00:09:07,159 --> 00:09:09,019 something that's worthy of discussion with both the board 235 00:09:09,019 --> 00:09:09,639 and the council as 236 00:09:09,639 --> 00:09:12,639 we progress. I guess what I'm kind of getting at is if we 237 00:09:12,639 --> 00:09:13,639 don't really have a 238 00:09:13,639 --> 00:09:18,570 clear plan mapped out with what we're gonna do with what we 239 00:09:18,570 --> 00:09:20,039 have then we may 240 00:09:20,039 --> 00:09:23,009 get into a situation like we're in now where we planned on 241 00:09:23,009 --> 00:09:23,960 doing something and 242 00:09:23,960 --> 00:09:26,769 spent money doing it or getting ready to do it and then we 243 00:09:26,769 --> 00:09:28,000 can't actually do that. 244 00:09:28,000 --> 00:09:31,399 So how can we really actually make a plan for that subst 245 00:09:31,399 --> 00:09:32,720 ation even somewhere else 246 00:09:32,720 --> 00:09:35,429 if we really don't know what we're gonna do with the 247 00:09:35,429 --> 00:09:37,559 landfill? Well I think what 248 00:09:37,559 --> 00:09:40,370 we have here in terms of these cells developed I think how 249 00:09:40,370 --> 00:09:41,120 we get there is 250 00:09:41,120 --> 00:09:44,679 not determined yet the sequence or how we go about 251 00:09:44,679 --> 00:09:46,039 constructing these cells and 252 00:09:46,039 --> 00:09:49,299 using them is not completely determined but from a permit 253 00:09:49,299 --> 00:09:50,720 standpoint we've looked 254 00:09:50,720 --> 00:09:53,129 at this and this is basically where those cells would have 255 00:09:53,129 --> 00:09:54,000 to be. I think the 256 00:09:54,000 --> 00:09:56,659 real decision is how do we sequence those up and do we 257 00:09:56,659 --> 00:09:57,759 actually end up using 258 00:09:57,759 --> 00:10:00,799 them or not? Or really the only decisions that we don't 259 00:10:00,799 --> 00:10:03,120 have made yet. 260 00:10:03,120 --> 00:10:09,279 Does that help? Sort of. I guess what I guess what if we've 261 00:10:09,279 --> 00:10:12,080 did you say 2013, 2014? 262 00:10:12,080 --> 00:10:18,679 2013 is when the public input process I believe for DME 263 00:10:18,679 --> 00:10:19,559 brought it away. 264 00:10:19,559 --> 00:10:25,169 And I don't know so here we are it's 2018 and we're 265 00:10:25,169 --> 00:10:27,720 starting over again kind 266 00:10:27,720 --> 00:10:31,279 of with selection for that location and that doesn't really 267 00:10:31,279 --> 00:10:32,159 doesn't give me any 268 00:10:32,159 --> 00:10:34,960 confidence that we have any idea what we're doing so I can 269 00:10:34,960 --> 00:10:35,639 't imagine it 270 00:10:35,639 --> 00:10:38,799 really would give anybody else who's actually you know 271 00:10:38,799 --> 00:10:39,840 spending the money or 272 00:10:39,840 --> 00:10:42,809 doing the work or bidding the jobs or responding to our 273 00:10:42,809 --> 00:10:44,159 requests for proposals 274 00:10:44,159 --> 00:10:52,100 that we know what we're doing. I'm sorry. It was more of a 275 00:10:52,100 --> 00:10:54,799 comment. I'm just 276 00:10:54,799 --> 00:10:57,600 surprised that we're having to redo something that's been 277 00:10:57,600 --> 00:10:58,399 on the books for 278 00:10:58,399 --> 00:11:01,000 five years for something as simple as oh it can't go there 279 00:11:01,000 --> 00:11:01,799 because we were 280 00:11:01,799 --> 00:11:06,090 already planned on using it. That seems like a to me. I 281 00:11:06,090 --> 00:11:06,759 understand the 282 00:11:06,759 --> 00:11:10,019 frustration and we're frustrated as well. I think that what 283 00:11:10,019 --> 00:11:11,360 we're trying to bring 284 00:11:11,360 --> 00:11:15,610 to you is our best analysis of the issue at this point in 285 00:11:15,610 --> 00:11:17,519 time and really from 286 00:11:17,519 --> 00:11:20,580 our standpoint it really shouldn't be on any part of the 287 00:11:20,580 --> 00:11:22,320 landfill site because 288 00:11:22,320 --> 00:11:24,330 of these issues that Ethan's bringing up and when they 289 00:11:24,330 --> 00:11:25,200 would be developed that 290 00:11:25,200 --> 00:11:27,259 would be our recommendation for you. We're gonna give you 291 00:11:27,259 --> 00:11:27,799 some of those 292 00:11:27,799 --> 00:11:31,200 options of where it can go and how we would get there but I 293 00:11:31,200 --> 00:11:32,240 understand the 294 00:11:32,240 --> 00:11:34,669 frustration we're just trying to give you the best analysis 295 00:11:34,669 --> 00:11:35,320 of where we are 296 00:11:35,320 --> 00:11:38,289 today and the issues that are involved. Well so how are we 297 00:11:38,289 --> 00:11:38,960 gonna build our 298 00:11:38,960 --> 00:11:42,210 confidence about how we're gonna move forward tomorrow? I 299 00:11:42,210 --> 00:11:43,080 mean if we spend time 300 00:11:43,080 --> 00:11:46,289 talking about it and having public hearings about it and 301 00:11:46,289 --> 00:11:47,480 then we really do 302 00:11:47,480 --> 00:11:50,399 how are we gonna have confidence that what we're deciding 303 00:11:50,399 --> 00:11:51,200 and what we're doing 304 00:11:51,200 --> 00:11:54,169 is actually what's gonna happen and it's gonna happen in a 305 00:11:54,169 --> 00:11:55,759 timely manner. How do 306 00:11:55,759 --> 00:11:59,000 we do that? Yeah it's a good question. I think the way we 307 00:11:59,000 --> 00:12:00,000 do it is to provide you 308 00:12:00,000 --> 00:12:02,690 all the information to be very transparent about what the 309 00:12:02,690 --> 00:12:03,600 issues are to 310 00:12:03,600 --> 00:12:06,889 make sure we show you the maps of where the landfill could 311 00:12:06,889 --> 00:12:08,240 be, the locations that 312 00:12:08,240 --> 00:12:11,629 are out there and the pros and cons of each site. I agree 313 00:12:11,629 --> 00:12:13,120 that that it's a 314 00:12:13,120 --> 00:12:17,159 challenge of how it was done in the past but we want to 315 00:12:17,159 --> 00:12:18,799 really reset that 316 00:12:18,799 --> 00:12:21,549 conversation show you where we are today and try to move us 317 00:12:21,549 --> 00:12:22,600 forward. That's the 318 00:12:22,600 --> 00:12:25,889 only way I know how to do it. Okay okay but by saying what 319 00:12:25,889 --> 00:12:26,879 you just said you 320 00:12:26,879 --> 00:12:31,379 suggest in 2013 we didn't do all those things. I'm saying 321 00:12:31,379 --> 00:12:32,799 that yes that we 322 00:12:32,799 --> 00:12:35,320 didn't have a good analysis of the site that's correct. 323 00:12:35,320 --> 00:12:37,639 Okay thank you. Sorry I 324 00:12:37,639 --> 00:12:43,750 didn't mean to make it tense. I think the you know I think 325 00:12:43,750 --> 00:12:45,000 the lesson learned here 326 00:12:45,000 --> 00:12:55,360 is you know we just the landfill part anytime we look at 327 00:12:55,360 --> 00:12:57,600 the going forward any 328 00:12:57,600 --> 00:13:02,090 any using any of that it's it's it's such a long-term 329 00:13:02,090 --> 00:13:03,200 effect that the dollars 330 00:13:03,200 --> 00:13:08,269 really add up the impact whenever you you know it's only 14 331 00:13:08,269 --> 00:13:10,120 acres or somewhere 332 00:13:10,120 --> 00:13:16,960 around there 14.7 but that the impact is huge from a from a 333 00:13:16,960 --> 00:13:18,039 from an economic 334 00:13:18,039 --> 00:13:25,200 standpoint so if anything that's that's kind of what I take 335 00:13:25,200 --> 00:13:28,000 out of this. Yes. Yeah 336 00:13:28,000 --> 00:13:31,240 I would just like to say just in response to what what 337 00:13:31,240 --> 00:13:32,320 Brandon was saying 338 00:13:32,320 --> 00:13:35,379 and the presentation that we're watching to me my 339 00:13:35,379 --> 00:13:37,120 perspective is that this is 340 00:13:37,120 --> 00:13:42,350 another situation where y'all are trying to mitigate damage 341 00:13:42,350 --> 00:13:44,559 that was done in the 342 00:13:44,559 --> 00:13:48,309 past that you know we can't go back in time but I really 343 00:13:48,309 --> 00:13:50,679 appreciate the the 344 00:13:50,679 --> 00:13:55,370 efforts to you know not only assess the situation but also 345 00:13:55,370 --> 00:13:56,960 to be transparent 346 00:13:56,960 --> 00:14:00,700 about it and in being transparent we can show okay there 347 00:14:00,700 --> 00:14:01,960 are sunken costs that we 348 00:14:01,960 --> 00:14:07,759 can't get back but also that that's no reason to and I'm 349 00:14:07,759 --> 00:14:08,759 just confirming what 350 00:14:08,759 --> 00:14:12,860 the suggestion is here that there that's no reason to just 351 00:14:12,860 --> 00:14:14,240 keep throwing more 352 00:14:14,240 --> 00:14:17,620 money at it right so we can save as I think you say later 353 00:14:17,620 --> 00:14:19,000 on in the 354 00:14:19,000 --> 00:14:25,110 presentation you know ten million dollars by not you know 355 00:14:25,110 --> 00:14:25,879 continuing to 356 00:14:25,879 --> 00:14:30,090 throw money at these at these sunken costs so I kind of as 357 00:14:30,090 --> 00:14:30,639 far as 358 00:14:30,639 --> 00:14:33,240 confidence goes just as far as my own perspective is 359 00:14:33,240 --> 00:14:35,200 concerned you know I to 360 00:14:35,200 --> 00:14:39,360 me this gives me confidence I mean it's not happy but but 361 00:14:39,360 --> 00:14:40,159 it's for me it's 362 00:14:40,159 --> 00:14:43,129 positive to see the transparency the effort to mitigate the 363 00:14:43,129 --> 00:14:44,179 past damage you 364 00:14:44,179 --> 00:14:47,149 know one thing that I would like to see more about and this 365 00:14:47,149 --> 00:14:48,279 wouldn't involve my 366 00:14:48,279 --> 00:14:52,179 own input into the you know directive that I would want to 367 00:14:52,179 --> 00:14:53,600 give today and it's 368 00:14:53,600 --> 00:14:56,029 not because I don't trust it but I'm just curious about 369 00:14:56,029 --> 00:14:56,960 what you were saying 370 00:14:56,960 --> 00:15:00,000 about the new entrance road how you know there was that sun 371 00:15:00,000 --> 00:15:01,000 ken cause but you're 372 00:15:01,000 --> 00:15:03,440 at the but it's at the point now where it would cost more 373 00:15:03,440 --> 00:15:04,200 to pull out of it 374 00:15:04,200 --> 00:15:07,940 then to keep going and I I trust that I'm just here I would 375 00:15:07,940 --> 00:15:09,799 be just curious to 376 00:15:09,799 --> 00:15:17,730 see I don't know maybe in a in an email or on the appendix 377 00:15:17,730 --> 00:15:20,480 to the next agenda 378 00:15:20,480 --> 00:15:24,360 you know some whatever work you all did to look at to 379 00:15:24,360 --> 00:15:26,200 compare to compare the 380 00:15:26,200 --> 00:15:29,559 cost of right pulling out versus going ahead again I trust 381 00:15:29,559 --> 00:15:30,200 it I'm just 382 00:15:30,200 --> 00:15:33,940 curious sure but anyway and get something together great 383 00:15:33,940 --> 00:15:35,000 but I do I do 384 00:15:35,000 --> 00:15:37,919 appreciate that and just for what it's worth from my own 385 00:15:37,919 --> 00:15:39,480 perspective it it gives 386 00:15:39,480 --> 00:15:41,899 me confidence to see that we're doing this and you know we 387 00:15:41,899 --> 00:15:42,799 've seen this before 388 00:15:42,799 --> 00:15:46,299 with other operations in solid waste and decisions that 389 00:15:46,299 --> 00:15:48,759 were made in the past so 390 00:15:48,759 --> 00:15:52,500 anyway that's all well there's no other questions for solid 391 00:15:52,500 --> 00:15:53,080 waste I'd like to 392 00:15:53,080 --> 00:15:56,049 invite Brent to the podium and I'll let him take it from 393 00:15:56,049 --> 00:15:57,440 here thanks Brent 394 00:15:57,440 --> 00:16:02,279 thanks Jason appreciate that good morning chairman Robinson 395 00:16:02,279 --> 00:16:03,720 public utilities board 396 00:16:03,720 --> 00:16:06,519 I'm Brent Heath executive manager for energy delivery based 397 00:16:06,519 --> 00:16:07,320 upon the 398 00:16:07,320 --> 00:16:10,090 information that we just heard about this expansion permit 399 00:16:10,090 --> 00:16:10,919 that has changed 400 00:16:10,919 --> 00:16:15,620 some of the criteria for the site that was selected it was 401 00:16:15,620 --> 00:16:16,840 kind of using a 402 00:16:16,840 --> 00:16:21,309 Star Wars saga slogan a long long time ago in a galaxy far 403 00:16:21,309 --> 00:16:23,000 far away but it's no 404 00:16:23,000 --> 00:16:25,700 reason to continue down that path if that's not the right 405 00:16:25,700 --> 00:16:28,679 way to go so Ethan 406 00:16:28,679 --> 00:16:31,299 did a great job giving a brief recap of how we got here 407 00:16:31,299 --> 00:16:33,200 back starting in 2013 408 00:16:33,200 --> 00:16:38,320 with a public open house we had a 2015 public open house in 409 00:16:38,320 --> 00:16:40,039 January 2016 410 00:16:40,039 --> 00:16:43,019 council went ahead and selected the site and then in June 411 00:16:43,019 --> 00:16:44,720 of 2016 council agreed 412 00:16:44,720 --> 00:16:48,009 to go ahead and fund the site with a fund transfer from DME 413 00:16:48,009 --> 00:16:49,679 to solid waste so 414 00:16:49,679 --> 00:16:52,070 that three-quarters of a million dollars that was 415 00:16:52,070 --> 00:16:53,440 transferred if this public 416 00:16:53,440 --> 00:16:56,409 utilities board and the City Council agrees that another 417 00:16:56,409 --> 00:16:57,039 site needs to be 418 00:16:57,039 --> 00:17:01,679 picked or different option picked then that would be refund 419 00:17:01,679 --> 00:17:05,279 ed back to DME and 420 00:17:05,279 --> 00:17:08,250 one thing I do want to mention you talked about the 14 421 00:17:08,250 --> 00:17:09,079 acres chairman 422 00:17:09,079 --> 00:17:12,279 Robinson the substation site the six point two seven acres 423 00:17:12,279 --> 00:17:13,119 you see here would 424 00:17:13,119 --> 00:17:16,859 be the site that we're potentially talking about abandoning 425 00:17:16,859 --> 00:17:17,279 but the 426 00:17:17,279 --> 00:17:19,160 remainder of that acreage the easements for the 427 00:17:19,160 --> 00:17:20,480 transmission letter still be 428 00:17:20,480 --> 00:17:23,069 required and I'll go through that here in just a moment was 429 00:17:23,069 --> 00:17:24,559 that included in 430 00:17:24,559 --> 00:17:29,019 this price here this is just the same right the one point 431 00:17:29,019 --> 00:17:30,079 two million dollars 432 00:17:30,079 --> 00:17:34,839 included the other acreage for the easements there's a 433 00:17:34,839 --> 00:17:36,000 couple reasons that 434 00:17:36,000 --> 00:17:38,700 we needed the project for the substation and also the 435 00:17:38,700 --> 00:17:40,680 transmission line there's 436 00:17:40,680 --> 00:17:42,930 both primary and secondary reasons one is for the 437 00:17:42,930 --> 00:17:44,160 additional diversity and 438 00:17:44,160 --> 00:17:47,079 capacity of the transmission line through Denton and I'll 439 00:17:47,079 --> 00:17:47,839 show some slides 440 00:17:47,839 --> 00:17:50,430 and maps here in a moment we can talk about that also the 441 00:17:50,430 --> 00:17:51,559 substation was 442 00:17:51,559 --> 00:17:54,849 planned for future load growth for customer and citizen 443 00:17:54,849 --> 00:17:55,920 needs out there on 444 00:17:55,920 --> 00:18:01,319 the distribution system so we looked at some alternative 445 00:18:01,319 --> 00:18:02,279 projects when we found 446 00:18:02,279 --> 00:18:05,450 that the existing site was probably not the best solution 447 00:18:05,450 --> 00:18:06,660 long term for the City 448 00:18:06,660 --> 00:18:10,160 of Denton overall we were presented with five other 449 00:18:10,160 --> 00:18:12,599 possible sites that we looked 450 00:18:12,599 --> 00:18:16,349 at we researched and after doing that those are all in the 451 00:18:16,349 --> 00:18:17,359 landfill none of 452 00:18:17,359 --> 00:18:20,490 those appeared to be near as viable but on an economic and 453 00:18:20,490 --> 00:18:21,279 operational 454 00:18:21,279 --> 00:18:24,319 perspective is what had been selected so I think based on 455 00:18:24,319 --> 00:18:25,640 information that we all 456 00:18:25,640 --> 00:18:29,400 had at the city earlier the previous site was the best site 457 00:18:29,400 --> 00:18:30,119 and actually 458 00:18:30,119 --> 00:18:33,619 still is the best site for how it was intended however we 459 00:18:33,619 --> 00:18:34,640 do want to go ahead 460 00:18:34,640 --> 00:18:37,450 and be a team player so we've come up with a transmission 461 00:18:37,450 --> 00:18:38,519 line alternative 462 00:18:38,519 --> 00:18:41,759 that we'd like to present of how we want to move forward 463 00:18:41,759 --> 00:18:43,160 and that will go ahead 464 00:18:43,160 --> 00:18:46,519 and help us mitigate some high loading concerns that we 465 00:18:46,519 --> 00:18:47,920 presently have on the 466 00:18:47,920 --> 00:18:50,890 transmission system between the Paukris and Brinker subst 467 00:18:50,890 --> 00:18:52,799 ations and the ten 468 00:18:52,799 --> 00:18:56,549 million dollars for the substation cost would actually not 469 00:18:56,549 --> 00:18:57,519 be needed at this 470 00:18:57,519 --> 00:19:00,779 time we would hope that in the future as the needs arise 471 00:19:00,779 --> 00:19:01,759 that that would be a 472 00:19:01,759 --> 00:19:05,500 deferred cost that we could spend if that's needed in the 473 00:19:05,500 --> 00:19:07,400 future so this is a 474 00:19:07,400 --> 00:19:10,160 system map a one-line map of the city of Denton's 475 00:19:10,160 --> 00:19:11,960 electrical transmission system 476 00:19:11,960 --> 00:19:14,710 you're noticing the bottom left-hand corners are Denton 477 00:19:14,710 --> 00:19:16,160 West substation that 478 00:19:16,160 --> 00:19:20,490 is where the only 345 kv source the strongest source coming 479 00:19:20,490 --> 00:19:21,200 into Denton 480 00:19:21,200 --> 00:19:28,039 arrives into the Denton area get this mouse here that okay 481 00:19:28,039 --> 00:19:29,200 right here the 482 00:19:29,200 --> 00:19:32,630 Denton West station from this spot the southwest corner to 483 00:19:32,630 --> 00:19:33,359 get up to the 484 00:19:33,359 --> 00:19:38,049 northeast corner of the system the Arco substation there's 485 00:19:38,049 --> 00:19:39,119 two ways to really 486 00:19:39,119 --> 00:19:42,619 get there one is a northern route through the Jim Crystal 487 00:19:42,619 --> 00:19:43,640 Denton North 488 00:19:43,640 --> 00:19:47,380 area around Arco to get to Arco there's also a southern 489 00:19:47,380 --> 00:19:49,079 route to come around to 490 00:19:49,079 --> 00:19:52,819 get to Arco both of those routes are needed when the source 491 00:19:52,819 --> 00:19:53,400 comes into 492 00:19:53,400 --> 00:19:56,039 Denton West substation it's split between both of those 493 00:19:56,039 --> 00:19:57,599 routes if there 494 00:19:57,599 --> 00:20:00,630 is any switching going on or contingency cases where a line 495 00:20:00,630 --> 00:20:02,079 is out of service 496 00:20:02,079 --> 00:20:05,829 only one of those lines is is going to be loaded more than 497 00:20:05,829 --> 00:20:07,519 normal so the one 498 00:20:07,519 --> 00:20:10,490 that we're talking about today is the Denton West on the 499 00:20:10,490 --> 00:20:11,240 southern route 500 00:20:11,240 --> 00:20:14,980 around up to Spencer interchange and around Arco and the 501 00:20:14,980 --> 00:20:15,940 reason Arco is 502 00:20:15,940 --> 00:20:18,700 important to get the strong source through Denton is it a 503 00:20:18,700 --> 00:20:19,839 lot of it goes 504 00:20:19,839 --> 00:20:23,579 out eastward to Collin County and so there's two ways to 505 00:20:23,579 --> 00:20:24,680 serve not only the 506 00:20:24,680 --> 00:20:27,410 load in Denton but also the load outside of Denton through 507 00:20:27,410 --> 00:20:28,759 the ERCOT Texas wide 508 00:20:28,759 --> 00:20:33,079 statewide transmission system you may note there's double 509 00:20:33,079 --> 00:20:34,160 lines a green line a 510 00:20:34,160 --> 00:20:36,549 red line a blue and a red there's two different lines all 511 00:20:36,549 --> 00:20:37,240 the way around 512 00:20:37,240 --> 00:20:40,740 through the Fort Worth Teasley on around to the Pokra subst 513 00:20:40,740 --> 00:20:42,759 ation area from Pokra 514 00:20:42,759 --> 00:20:45,920 substation up to Spencer interchange there's only one line 515 00:20:45,920 --> 00:20:47,559 and that's pretty 516 00:20:47,559 --> 00:20:50,119 descriptive because all these two lines through here are 517 00:20:50,119 --> 00:20:51,079 what we call bundled 518 00:20:51,079 --> 00:20:54,630 conductor it's two different conductors two different wires 519 00:20:54,630 --> 00:20:55,799 tied together per 520 00:20:55,799 --> 00:20:59,519 phase it's been reconducted with higher 521 00:20:59,519 --> 00:21:04,750 impacity conductor to carry more current presently between 522 00:21:04,750 --> 00:21:05,880 pockress and Spencer 523 00:21:05,880 --> 00:21:09,019 this one section of line right here is the section of line 524 00:21:09,019 --> 00:21:09,799 that has been 525 00:21:09,799 --> 00:21:13,750 identified as being overloaded as far as under certain 526 00:21:13,750 --> 00:21:16,619 contingency conditions now 527 00:21:16,619 --> 00:21:21,279 we have done some temporary fixes to where encore TXU used 528 00:21:21,279 --> 00:21:22,519 to come out of 529 00:21:22,519 --> 00:21:26,279 Spencer interchange and come back down to then head south 530 00:21:26,279 --> 00:21:27,480 we have moved that 531 00:21:27,480 --> 00:21:30,250 point of interconnection that demarcation point from 532 00:21:30,250 --> 00:21:31,119 Spencer interchange 533 00:21:31,119 --> 00:21:35,839 through some of our substation work southeastward down to 534 00:21:35,839 --> 00:21:36,640 see this mouse 535 00:21:36,640 --> 00:21:39,920 down to pockress and what that has done is that has 536 00:21:39,920 --> 00:21:41,920 actually alleviated some of 537 00:21:41,920 --> 00:21:46,230 that concern due to the encore TXU load and so we had the 538 00:21:46,230 --> 00:21:47,680 capability which we 539 00:21:47,680 --> 00:21:50,930 took it was an option and we took it where we tied the two 540 00:21:50,930 --> 00:21:52,039 different sets of 541 00:21:52,039 --> 00:21:55,789 conductors together and kind of made them a bundled 542 00:21:55,789 --> 00:21:57,440 conductor and so that has 543 00:21:57,440 --> 00:22:01,319 helped us in this interim period but it has not been recond 544 00:22:01,319 --> 00:22:02,680 ucted it doesn't have 545 00:22:02,680 --> 00:22:05,650 the high impacity conductor and so we were looking for some 546 00:22:05,650 --> 00:22:06,640 alternate routes 547 00:22:06,640 --> 00:22:09,329 to help improve that situation and provide the diversity 548 00:22:09,329 --> 00:22:10,160 that I mentioned 549 00:22:10,160 --> 00:22:15,210 earlier so all wouldn't be on one path there's a lot of 550 00:22:15,210 --> 00:22:16,960 words for one map 551 00:22:16,960 --> 00:22:19,940 here's two more maps maybe they won't be as many words this 552 00:22:19,940 --> 00:22:21,480 time the item on the 553 00:22:21,480 --> 00:22:24,079 left the image on the left is zoomed in between pockress 554 00:22:24,079 --> 00:22:26,200 substation and Spencer 555 00:22:26,200 --> 00:22:28,819 shows that one red line that we just talked about the 556 00:22:28,819 --> 00:22:30,720 original plan it was to 557 00:22:30,720 --> 00:22:33,690 come out of pockress find a different route a diversified 558 00:22:33,690 --> 00:22:34,839 route around this 559 00:22:34,839 --> 00:22:38,720 direction by the landfill have Mayhill substation and go 560 00:22:38,720 --> 00:22:39,839 from Mayhill back to 561 00:22:39,839 --> 00:22:43,579 Brinker and the Spencer interchange complex so this was the 562 00:22:43,579 --> 00:22:44,140 original 563 00:22:44,140 --> 00:22:47,450 proposed route it would have solved the situation that I 564 00:22:47,450 --> 00:22:49,559 mentioned earlier the 565 00:22:49,559 --> 00:22:53,140 alternate route that we're proposing today over in the 566 00:22:53,140 --> 00:22:54,480 right hand side it 567 00:22:54,480 --> 00:22:57,490 looks essentially the same with the same route for the 568 00:22:57,490 --> 00:22:58,759 transmission system 569 00:22:58,759 --> 00:23:02,059 between pockress over to Brinker but it does not have the 570 00:23:02,059 --> 00:23:03,359 Mayhill substation 571 00:23:03,359 --> 00:23:07,529 here so we are proposing to still utilize the remainder eas 572 00:23:07,529 --> 00:23:08,240 ements for the 573 00:23:08,240 --> 00:23:11,299 transmission line along the landfill not put the substation 574 00:23:11,299 --> 00:23:12,160 there free up the 575 00:23:12,160 --> 00:23:16,660 space for the future expanded cell development but still 576 00:23:16,660 --> 00:23:17,700 mitigate the 577 00:23:17,700 --> 00:23:20,319 transmission concerns and the loading conditions that we 578 00:23:20,319 --> 00:23:21,480 have so that's what's 579 00:23:21,480 --> 00:23:25,319 being proposed is the transmission only approach at this 580 00:23:25,319 --> 00:23:27,359 time so the next steps 581 00:23:27,359 --> 00:23:32,359 if the board and the public utility City Council agrees is 582 00:23:32,359 --> 00:23:33,119 to go ahead 583 00:23:33,119 --> 00:23:36,039 and complete the design and the easement acquisition for 584 00:23:36,039 --> 00:23:37,160 the new transmission only 585 00:23:37,160 --> 00:23:40,740 solution there is one segment that has not been acquired 586 00:23:40,740 --> 00:23:41,880 yet for that and that's 587 00:23:41,880 --> 00:23:45,079 needed in any of these cases and that's for these along 588 00:23:45,079 --> 00:23:46,920 Spencer Road and we're 589 00:23:46,920 --> 00:23:50,920 proposing to mitigate and integrate that into the mobility 590 00:23:50,920 --> 00:23:52,400 plan for the street at 591 00:23:52,400 --> 00:23:55,369 Spencer and so that has not been acquired at this time and 592 00:23:55,369 --> 00:23:56,079 so we propose 593 00:23:56,079 --> 00:23:59,190 to complete that design continue acquiring all that working 594 00:23:59,190 --> 00:23:59,359 on 595 00:23:59,359 --> 00:24:02,089 establishing that entire route we have feature 596 00:24:02,089 --> 00:24:04,039 considerations that will perform 597 00:24:04,039 --> 00:24:08,250 a route study for maybe for a possible future transmission 598 00:24:08,250 --> 00:24:09,200 line between our co 599 00:24:09,200 --> 00:24:15,309 and pockress and let me go back a map here pockress is down 600 00:24:15,309 --> 00:24:16,079 here we're going 601 00:24:16,079 --> 00:24:18,420 to go ahead and build this transmission line that's what's 602 00:24:18,420 --> 00:24:19,920 being proposed but we 603 00:24:19,920 --> 00:24:23,700 also have identified in some of the FERC 715 transmission 604 00:24:23,700 --> 00:24:24,720 studies that we've done 605 00:24:24,720 --> 00:24:27,640 as a matter of fact we just submitted another annual report 606 00:24:27,640 --> 00:24:28,440 on April 1st of 607 00:24:28,440 --> 00:24:32,650 this year they're always do April 1st and we need to look 608 00:24:32,650 --> 00:24:33,759 at how do we get 609 00:24:33,759 --> 00:24:38,039 from pockress substation somehow potentially in the future 610 00:24:38,039 --> 00:24:39,220 up to our co 611 00:24:39,220 --> 00:24:43,710 substation on the far eastern portion of Denton and what 612 00:24:43,710 --> 00:24:45,579 that does is it would 613 00:24:45,579 --> 00:24:48,750 mitigate the concerns here it'd mitigate all this it takes 614 00:24:48,750 --> 00:24:49,960 all of these different 615 00:24:49,960 --> 00:24:53,359 transmission lines into account and we would have a 616 00:24:53,359 --> 00:24:54,920 straight path from the 617 00:24:54,920 --> 00:24:58,130 southern portion from Denton West to pockress all the way 618 00:24:58,130 --> 00:24:59,079 around our co to 619 00:24:59,079 --> 00:25:02,450 head out east over toward the Collin County area and so 620 00:25:02,450 --> 00:25:03,440 that would be 621 00:25:03,440 --> 00:25:06,220 something that we would begin investigating we we have no 622 00:25:06,220 --> 00:25:07,480 plans there's 623 00:25:07,480 --> 00:25:10,230 there's not urgent in any form or fashion is just something 624 00:25:10,230 --> 00:25:10,920 that we would 625 00:25:10,920 --> 00:25:14,490 like to be in the process on looking at that and so that 626 00:25:14,490 --> 00:25:15,720 would be a future 627 00:25:15,720 --> 00:25:18,779 consideration between our co and pockress and then we will 628 00:25:18,779 --> 00:25:19,480 continue to 629 00:25:19,480 --> 00:25:22,539 research possible substation sites whether it ends up being 630 00:25:22,539 --> 00:25:23,160 maybe on the 631 00:25:23,160 --> 00:25:26,500 east edge along this route once it's been defined and 632 00:25:26,500 --> 00:25:27,480 established and public 633 00:25:27,480 --> 00:25:30,029 involvement meetings have happened and the citizens help us 634 00:25:30,029 --> 00:25:30,880 pick a route we'd 635 00:25:30,880 --> 00:25:33,849 look for a new substation site that could serve future 636 00:25:33,849 --> 00:25:34,960 citizen and customer 637 00:25:34,960 --> 00:25:38,700 loads and so that's the proposal in front of you today is 638 00:25:38,700 --> 00:25:40,200 to help the city 639 00:25:40,200 --> 00:25:45,170 and solid waste with the expansion permit the potential 640 00:25:45,170 --> 00:25:46,559 loss of cell space 641 00:25:46,559 --> 00:25:50,299 in future years but we have an immediate approach that we 642 00:25:50,299 --> 00:25:51,680 can save and defer ten 643 00:25:51,680 --> 00:25:56,920 million dollars and allow the land to be utilized for 644 00:25:56,920 --> 00:25:58,400 future landfill space and 645 00:25:58,400 --> 00:26:03,799 still mitigate the transmission line portions at this time 646 00:26:03,799 --> 00:26:06,359 so that's all that 647 00:26:06,359 --> 00:26:08,839 I have it's it's a lot of information I know it's kind of 648 00:26:08,839 --> 00:26:09,880 overwhelming it's a 649 00:26:09,880 --> 00:26:12,470 little disappointing that we're at this point from where we 650 00:26:12,470 --> 00:26:13,839 began but we are and 651 00:26:13,839 --> 00:26:17,579 we do want to try to rectify and find good solutions moving 652 00:26:17,579 --> 00:26:19,359 forward I know that 653 00:26:19,359 --> 00:26:23,099 George and Ethan and Chuck and I would be happy to answer 654 00:26:23,099 --> 00:26:24,519 any questions that 655 00:26:24,519 --> 00:26:27,210 you have about the landfill or the electric aspects of this 656 00:26:27,210 --> 00:26:27,980 proposal to move 657 00:26:27,980 --> 00:26:32,880 forward with the transmission only approach yes so I 658 00:26:32,880 --> 00:26:34,279 applaud the 659 00:26:34,279 --> 00:26:37,250 transmission only approach it sounds like a good solution 660 00:26:37,250 --> 00:26:37,839 and as I said 661 00:26:37,839 --> 00:26:42,960 before this sounds like a good way to mitigate some 662 00:26:42,960 --> 00:26:45,079 unfortunate you know 663 00:26:45,079 --> 00:26:50,059 sunken cost from the past that can't be corrected I'm still 664 00:26:50,059 --> 00:26:53,319 not clear about as 665 00:26:53,319 --> 00:26:57,549 far as kind of future you know where to put the substation 666 00:26:57,549 --> 00:26:58,799 in the future I'm 667 00:26:58,799 --> 00:27:04,349 still not clear about the need for that substation in the 668 00:27:04,349 --> 00:27:05,920 first place and 669 00:27:05,920 --> 00:27:13,339 whether it's about growth here in Denton in that area which 670 00:27:13,339 --> 00:27:14,680 I don't quite see in 671 00:27:14,680 --> 00:27:23,500 that specific in that area or if it's about the generation 672 00:27:23,500 --> 00:27:24,519 coming from the 673 00:27:24,519 --> 00:27:29,750 new from the new the new gas plant and the effect of that 674 00:27:29,750 --> 00:27:31,599 on on the transmission 675 00:27:31,599 --> 00:27:34,890 load so if you could say something about that and and I'll 676 00:27:34,890 --> 00:27:36,079 just add kind of throw 677 00:27:36,079 --> 00:27:39,480 in there you know also kind of thinking back to as far as 678 00:27:39,480 --> 00:27:40,799 you know decisions 679 00:27:40,799 --> 00:27:44,079 made in the past that that can't be changed you know I I 680 00:27:44,079 --> 00:27:45,160 think about the 681 00:27:45,160 --> 00:27:52,440 relation of some of these substations to the gas plant and 682 00:27:52,440 --> 00:27:54,400 you know it looks to 683 00:27:54,400 --> 00:27:58,140 me that these certain decisions were made with the gas 684 00:27:58,140 --> 00:27:59,160 plant in mind before 685 00:27:59,160 --> 00:28:01,730 the public knew about the gas plant and that was by I mean 686 00:28:01,730 --> 00:28:02,759 the people who could 687 00:28:02,759 --> 00:28:06,119 answer to that you know many of them aren't aren't here to 688 00:28:06,119 --> 00:28:06,720 answer for that 689 00:28:06,720 --> 00:28:09,109 but I just wanted to note that just so in case the public 690 00:28:09,109 --> 00:28:09,960 is kind of scratching 691 00:28:09,960 --> 00:28:12,609 their heads at home thinking wait but we didn't know there 692 00:28:12,609 --> 00:28:13,440 was gonna be a gas 693 00:28:13,440 --> 00:28:16,250 plant then anyway but if you could explain for for us and 694 00:28:16,250 --> 00:28:17,039 you know and also 695 00:28:17,039 --> 00:28:21,690 for the public you know how much of this had to do has to 696 00:28:21,690 --> 00:28:23,559 do with the load in the 697 00:28:23,559 --> 00:28:26,240 area for Denton and how much has to do with what we're 698 00:28:26,240 --> 00:28:28,359 gonna be generating okay 699 00:28:28,359 --> 00:28:31,170 thank you those are very good questions I can assure you 700 00:28:31,170 --> 00:28:32,640 that the substation may 701 00:28:32,640 --> 00:28:35,559 whole substation when it was planned in 2013 was prior to 702 00:28:35,559 --> 00:28:36,319 any discussions 703 00:28:36,319 --> 00:28:39,609 beginning about the gas gas plant so it didn't have any 704 00:28:39,609 --> 00:28:41,880 relation to that it only 705 00:28:41,880 --> 00:28:44,910 has to do with the transmission line loading that we have 706 00:28:44,910 --> 00:28:46,039 identified through 707 00:28:46,039 --> 00:28:50,720 the FERC 715 studies so the the reason for the substation 708 00:28:50,720 --> 00:28:51,200 versus the 709 00:28:51,200 --> 00:28:54,940 transmission system is it does allow the substation allows 710 00:28:54,940 --> 00:28:56,880 for future load growth 711 00:28:56,880 --> 00:29:01,440 customer growth in that area there is undeveloped vacant 712 00:29:01,440 --> 00:29:02,960 area over in that 713 00:29:02,960 --> 00:29:06,349 eastern southeastern portion of town we do serve some 714 00:29:06,349 --> 00:29:07,839 critical loads such as 715 00:29:07,839 --> 00:29:11,599 the hospital the wastewater treatment plant and I see PS 716 00:29:11,599 --> 00:29:12,440 smiling about that 717 00:29:12,440 --> 00:29:17,220 and and FEMA has enough regional call center there and so 718 00:29:17,220 --> 00:29:18,519 the substation is 719 00:29:18,519 --> 00:29:21,440 for that as well as all the other undeveloped areas so that 720 00:29:21,440 --> 00:29:22,079 's why we can 721 00:29:22,079 --> 00:29:25,819 not that's why we can get by without using the substation 722 00:29:25,819 --> 00:29:26,759 now because we 723 00:29:26,759 --> 00:29:29,730 presently serve all of those items it would just add a 724 00:29:29,730 --> 00:29:30,920 diversification and 725 00:29:30,920 --> 00:29:34,150 enhanced reliability but as new growth comes on we will 726 00:29:34,150 --> 00:29:35,319 need to look at another 727 00:29:35,319 --> 00:29:40,119 possible future site but that may be decades down the road 728 00:29:40,119 --> 00:29:41,640 yeah thank you 729 00:29:41,640 --> 00:29:47,839 thanks that helps a lot you answered my question on the 730 00:29:47,839 --> 00:29:49,599 hospital load so it's 731 00:29:49,599 --> 00:29:53,640 it's fine today but we may need a substation over there if 732 00:29:53,640 --> 00:29:54,119 there's more 733 00:29:54,119 --> 00:30:01,150 load growth in that area that is correct okay so this you 734 00:30:01,150 --> 00:30:02,720 know that the area that's 735 00:30:02,720 --> 00:30:10,180 just north of like along pockress and north or east or 736 00:30:10,180 --> 00:30:12,599 whatever it is of like 737 00:30:12,599 --> 00:30:17,410 we're post oak and all that is that is that a service area 738 00:30:17,410 --> 00:30:19,119 as well or is that 739 00:30:19,119 --> 00:30:22,519 on we do serve this area around the pockress substation 740 00:30:22,519 --> 00:30:23,680 there are you get in 741 00:30:23,680 --> 00:30:26,150 some areas when you get on the fringe areas there may be 742 00:30:26,150 --> 00:30:27,279 some dual certified 743 00:30:27,279 --> 00:30:31,019 areas with other utilities but all of this is in the single 744 00:30:31,019 --> 00:30:31,839 certified and 745 00:30:31,839 --> 00:30:37,259 that's that's been a high growth area yes a lot of a lot of 746 00:30:37,259 --> 00:30:38,480 growth going on 747 00:30:38,480 --> 00:30:43,769 there yes you know it's interesting I guess the other thing 748 00:30:43,769 --> 00:30:46,200 too on the I notice 749 00:30:46,200 --> 00:30:53,880 that were a lot of this ties back to the Urquhart 750 00:30:53,880 --> 00:30:57,200 reliability from the from the 751 00:30:57,200 --> 00:31:01,720 West coming in and I just wonder if that has a lot to do 752 00:31:01,720 --> 00:31:03,839 with the increase in the 753 00:31:03,839 --> 00:31:07,000 in the wind power that's coming from the West we do we do 754 00:31:07,000 --> 00:31:08,359 receive a lot of 755 00:31:08,359 --> 00:31:11,329 congestion to have better transmission for that yes sir you 756 00:31:11,329 --> 00:31:12,359 're entirely correct 757 00:31:12,359 --> 00:31:15,609 we are seeing more wind energy coming from West Texas area 758 00:31:15,609 --> 00:31:16,599 into the Denton 759 00:31:16,599 --> 00:31:20,369 West substation from TXU and Encore and that does have to 760 00:31:20,369 --> 00:31:21,720 not only serve loads 761 00:31:21,720 --> 00:31:27,480 here in the Denton area but also east of here sure yes so 762 00:31:27,480 --> 00:31:29,000 you mentioned in your 763 00:31:29,000 --> 00:31:33,119 presentation that to move forward with the alternate plan 764 00:31:33,119 --> 00:31:35,119 we'll have to do some 765 00:31:35,119 --> 00:31:39,440 easement acquisitions did we begin easement acquisitions 766 00:31:39,440 --> 00:31:40,240 for the original 767 00:31:40,240 --> 00:31:43,519 plan we have all the easement acquisitions we need for the 768 00:31:43,519 --> 00:31:43,880 original 769 00:31:43,880 --> 00:31:48,579 plan except one small section okay and so just by looking 770 00:31:48,579 --> 00:31:49,920 at the map I mean it 771 00:31:49,920 --> 00:31:53,079 looks like maybe it's only in a different place so that we 772 00:31:53,079 --> 00:31:53,880 can see it on 773 00:31:53,880 --> 00:31:57,400 the map you're not real are you really moving it to the 774 00:31:57,400 --> 00:31:59,160 east the transmission 775 00:31:59,160 --> 00:32:02,400 line would stay in the original location is playing so you 776 00:32:02,400 --> 00:32:03,359 really so we really 777 00:32:03,359 --> 00:32:07,279 only have one more property then to look at even for the 778 00:32:07,279 --> 00:32:08,960 alternate plan yes and 779 00:32:08,960 --> 00:32:11,930 we have a possible route forward for that with with the 780 00:32:11,930 --> 00:32:12,960 city mobility plan 781 00:32:12,960 --> 00:32:17,269 okay do you have an idea and I guess it won't really impact 782 00:32:17,269 --> 00:32:18,680 the type of support 783 00:32:18,680 --> 00:32:21,819 structures used or the number of support structures really 784 00:32:21,819 --> 00:32:23,720 either will it there 785 00:32:23,720 --> 00:32:28,190 actually could be a reduction in some of the transmission 786 00:32:28,190 --> 00:32:29,519 poles by not having 787 00:32:29,519 --> 00:32:32,490 have a redundant path with this new proposed transmission 788 00:32:32,490 --> 00:32:33,359 only route kind of 789 00:32:33,359 --> 00:32:36,329 sounds counterintuitive but the way that it was configured 790 00:32:36,329 --> 00:32:37,119 there's some possible 791 00:32:37,119 --> 00:32:39,619 reductions and I'll take your word for it yes can you 792 00:32:39,619 --> 00:32:41,160 describe the support 793 00:32:41,160 --> 00:32:44,319 structures are they the big it'd be the rector set looking 794 00:32:44,319 --> 00:32:45,319 things or are they 795 00:32:45,319 --> 00:32:48,359 big giant metal it'd be the still mono poles single pole 796 00:32:48,359 --> 00:32:49,519 structures with the 797 00:32:49,519 --> 00:32:53,890 base size of those ones that are like this the ones that 798 00:32:53,890 --> 00:32:54,519 are like it would be 799 00:32:54,519 --> 00:32:57,720 the ones that you've been seeing installed around town 800 00:32:57,720 --> 00:33:01,960 all right thank you so yes ready I have a question 801 00:33:01,960 --> 00:33:05,519 because I've confused myself are you saying that the 802 00:33:05,519 --> 00:33:07,119 alternate plan solves 803 00:33:07,119 --> 00:33:11,000 the Mayhill landfill problem the alternate path the 804 00:33:11,000 --> 00:33:12,599 alternate plan with 805 00:33:12,599 --> 00:33:16,089 the transmission only removes the Mayhill substation it's 806 00:33:16,089 --> 00:33:17,200 not on this plan 807 00:33:17,200 --> 00:33:20,579 and that is the portion that is in question for cell 808 00:33:20,579 --> 00:33:22,039 development the 809 00:33:22,039 --> 00:33:25,779 transmission easements by the landfill they all still 810 00:33:25,779 --> 00:33:28,000 remain in place and so by 811 00:33:28,000 --> 00:33:32,680 just not putting the substation there and redoing part of 812 00:33:32,680 --> 00:33:33,799 the transmission work 813 00:33:33,799 --> 00:33:36,890 where we don't have the double circuit that I just talked 814 00:33:36,890 --> 00:33:37,799 to with about Brent 815 00:33:37,799 --> 00:33:41,200 about reducing poles we can still accomplish the 816 00:33:41,200 --> 00:33:42,240 transmission loading and 817 00:33:42,240 --> 00:33:47,039 help with landfill cell use with this expansion permit and 818 00:33:47,039 --> 00:33:47,799 save ten million 819 00:33:47,799 --> 00:33:51,589 dollars save ten million dollars today with a possible 820 00:33:51,589 --> 00:33:52,519 deferred need in the 821 00:33:52,519 --> 00:33:58,630 future yes so then how much more planning relative to May 822 00:33:58,630 --> 00:33:59,640 hill needs to be 823 00:33:59,640 --> 00:34:04,799 done if this gets approved what we'll be looking at the 824 00:34:04,799 --> 00:34:06,559 procure in this portion 825 00:34:06,559 --> 00:34:09,369 of the transmission route right here that we don't have and 826 00:34:09,369 --> 00:34:10,039 then we will 827 00:34:10,039 --> 00:34:13,440 begin at some point getting from pockress up to Arco which 828 00:34:13,440 --> 00:34:14,320 we've not done 829 00:34:14,320 --> 00:34:17,480 anything at all and that'll just be some preliminary 830 00:34:17,480 --> 00:34:18,119 preliminary 831 00:34:18,119 --> 00:34:22,480 investigations that is long term I my question was really 832 00:34:22,480 --> 00:34:23,760 about the landfill 833 00:34:23,760 --> 00:34:27,650 itself in terms of doing all this research and coming up 834 00:34:27,650 --> 00:34:28,800 with alternate 835 00:34:28,800 --> 00:34:36,039 plans if this is done then what's the next going back to 836 00:34:36,039 --> 00:34:37,159 the original 837 00:34:37,159 --> 00:34:41,800 presentation then what happens or needs to be done or 838 00:34:41,800 --> 00:34:43,920 looked at well I think for 839 00:34:43,920 --> 00:34:48,510 us again these cells are what's currently in our permit so 840 00:34:48,510 --> 00:34:49,039 if the 841 00:34:49,039 --> 00:34:51,289 substation does go in we probably have to go back and 842 00:34:51,289 --> 00:34:52,199 remove some of this it's 843 00:34:52,199 --> 00:34:54,150 always easier to go to the TCEQ and say we don't need 844 00:34:54,150 --> 00:34:56,079 landfill development than 845 00:34:56,079 --> 00:34:58,679 it is to ask for additional but essentially we would move 846 00:34:58,679 --> 00:34:59,360 forward with 847 00:34:59,360 --> 00:35:01,940 the permit as is I think the next step to answer your 848 00:35:01,940 --> 00:35:03,360 question and maybe circle 849 00:35:03,360 --> 00:35:06,329 back to mr. Carroll's earlier is we do need to do a master 850 00:35:06,329 --> 00:35:07,320 plan for solid waste 851 00:35:07,320 --> 00:35:10,460 we wanted to make sure we understood where the substation 852 00:35:10,460 --> 00:35:11,239 was or was not 853 00:35:11,239 --> 00:35:14,530 going to be before we proceeded with that but we do need to 854 00:35:14,530 --> 00:35:15,360 give back and 855 00:35:15,360 --> 00:35:17,780 start kind of understanding how are we going to sequence 856 00:35:17,780 --> 00:35:18,719 this bring that back 857 00:35:18,719 --> 00:35:21,800 to the pub as well as the City Council for your input as 858 00:35:21,800 --> 00:35:22,760 well but understand 859 00:35:22,760 --> 00:35:25,150 that these cells right here this is already part of the 860 00:35:25,150 --> 00:35:26,119 permit so we really 861 00:35:26,119 --> 00:35:30,079 don't need to change anything if the pub recommends us for 862 00:35:30,079 --> 00:35:31,119 moving forward to the 863 00:35:31,119 --> 00:35:39,639 council so yes thank you I have a question about the cost 864 00:35:39,639 --> 00:35:40,960 of so the 865 00:35:40,960 --> 00:35:45,469 the acreage that was purchased from and I'm not sure if 866 00:35:45,469 --> 00:35:47,199 this is a DME or solid waste 867 00:35:47,199 --> 00:35:53,079 I can see you're both standing there it's about the acreage 868 00:35:53,079 --> 00:35:53,599 that was 869 00:35:53,599 --> 00:36:01,110 purchased by DME from solid waste for the $774,682 is it is 870 00:36:01,110 --> 00:36:02,039 that in any way 871 00:36:02,039 --> 00:36:06,010 refundable since that's from that within the city that's 872 00:36:06,010 --> 00:36:07,320 all fund balance 873 00:36:07,320 --> 00:36:11,150 internal budget transfer that would just be the area shown 874 00:36:11,150 --> 00:36:12,440 here in the magenta 875 00:36:12,440 --> 00:36:16,000 the purple that's where the substations at that would be 876 00:36:16,000 --> 00:36:17,119 the section this 877 00:36:17,119 --> 00:36:21,690 775,000 that would just be a fun transfer back to DME where 878 00:36:21,690 --> 00:36:22,599 it came from 879 00:36:22,599 --> 00:36:26,340 yes over to solid waste okay okay good good so that's 880 00:36:26,340 --> 00:36:27,599 something that the rate 881 00:36:27,599 --> 00:36:32,880 payers can see that that's not part of the the sunken cost 882 00:36:32,880 --> 00:36:33,920 right no that that 883 00:36:33,920 --> 00:36:36,650 funding is available whichever side of the city yeah 884 00:36:36,650 --> 00:36:38,199 absolutely yep okay thank 885 00:36:38,199 --> 00:36:41,329 you I was just kind of mentioned in that same conversation 886 00:36:41,329 --> 00:36:42,159 that would need to come 887 00:36:42,159 --> 00:36:44,809 back to the PB for approval and then to the City Council 888 00:36:44,809 --> 00:36:45,880 that we'd bring that 889 00:36:45,880 --> 00:36:51,000 back so you would see that okay just when this is kind of 890 00:36:51,000 --> 00:36:51,920 off-the-wall 891 00:36:51,920 --> 00:36:58,030 question did we consider possibility of a gas insulated 892 00:36:58,030 --> 00:37:01,159 solution to this that 893 00:37:01,159 --> 00:37:06,710 was discussed yes I mean that that is you know has two to 894 00:37:06,710 --> 00:37:07,440 two and a half times 895 00:37:07,440 --> 00:37:11,980 the cost sure and whether it goes on this site which we'd 896 00:37:11,980 --> 00:37:12,760 still would not 897 00:37:12,760 --> 00:37:15,010 want to put it on this site after knowing what we know 898 00:37:15,010 --> 00:37:16,519 about the expansion permit 899 00:37:16,519 --> 00:37:19,489 but considering other sites the alternatives I'm just 900 00:37:19,489 --> 00:37:19,840 thinking about 901 00:37:19,840 --> 00:37:23,849 alternative sites in the future if it gets you know if we 902 00:37:23,849 --> 00:37:25,599 're crowding in to 903 00:37:25,599 --> 00:37:29,679 something it's it's something to look at right I understand 904 00:37:29,679 --> 00:37:30,760 it's more expensive 905 00:37:30,760 --> 00:37:39,929 but sometimes you have to do that so okay I wonder if we 906 00:37:39,929 --> 00:37:42,280 can add like we have 907 00:37:42,280 --> 00:37:48,760 in the past we've added an analysis for GIS to every subst 908 00:37:48,760 --> 00:37:50,199 ation I wonder if we 909 00:37:50,199 --> 00:37:54,519 can add this analysis that I guess we didn't do in 2013 910 00:37:54,519 --> 00:37:54,920 about a 911 00:37:54,920 --> 00:37:58,969 transmission only possibility is that possible that we can 912 00:37:58,969 --> 00:38:00,079 now use do that in 913 00:38:00,079 --> 00:38:04,550 the future for every facility instead of doing it five 914 00:38:04,550 --> 00:38:06,159 years later and retro 915 00:38:06,159 --> 00:38:10,369 right yeah back in 2013 when we began this process we were 916 00:38:10,369 --> 00:38:11,559 so far behind the 917 00:38:11,559 --> 00:38:14,659 eight ball in the transmission system from the very first 918 00:38:14,659 --> 00:38:16,119 first 715 studies we 919 00:38:16,119 --> 00:38:19,179 did in 2011 and of course we had our all-time system peak 920 00:38:19,179 --> 00:38:20,320 load it just jumped 921 00:38:20,320 --> 00:38:23,469 like we have never seen before and so we didn't have any 922 00:38:23,469 --> 00:38:24,739 time to waste and we 923 00:38:24,739 --> 00:38:27,380 didn't want to get not only have the pendulum swing from 924 00:38:27,380 --> 00:38:28,199 being very far 925 00:38:28,199 --> 00:38:31,550 behind to exactly meeting today's needs but why would you 926 00:38:31,550 --> 00:38:32,280 not want to look at 927 00:38:32,280 --> 00:38:36,190 what could we do ahead of that to plan for the future and 928 00:38:36,190 --> 00:38:37,400 so we did look at 929 00:38:37,400 --> 00:38:39,829 planning for the future and that's why we proposed the May 930 00:38:39,829 --> 00:38:40,800 hill substation it 931 00:38:40,800 --> 00:38:45,039 looked like it was a good alternative it was on the new 932 00:38:45,039 --> 00:38:46,280 transmission line route 933 00:38:46,280 --> 00:38:49,639 we wanted to incorporate that but yes we can look at the 934 00:38:49,639 --> 00:38:51,079 scenario do we have to 935 00:38:51,079 --> 00:38:54,570 have it now or can it be deferred to the future and I know 936 00:38:54,570 --> 00:38:56,219 the landfill that the 937 00:38:56,219 --> 00:38:58,530 changes in what we're doing with the landfill is what 938 00:38:58,530 --> 00:38:59,679 precipitated the need 939 00:38:59,679 --> 00:39:04,360 to evaluate moving this or do you believe that we're gonna 940 00:39:04,360 --> 00:39:05,440 see any of this 941 00:39:05,440 --> 00:39:11,840 kind of stuff with other proposed approved substations that 942 00:39:11,840 --> 00:39:12,360 haven't been 943 00:39:12,360 --> 00:39:19,309 built yet for instance like the Eagle what is it Eagle and 944 00:39:19,309 --> 00:39:20,960 Eagle substation 945 00:39:20,960 --> 00:39:24,670 yeah I mean because we kind of had a lot of public hearing 946 00:39:24,670 --> 00:39:26,199 a lot of stuff and we 947 00:39:26,199 --> 00:39:29,489 picked a side and nothing's been done are we gonna reeval 948 00:39:29,489 --> 00:39:30,719 uate that one too do 949 00:39:30,719 --> 00:39:35,320 you think I don't see that that that's actually the same 950 00:39:35,320 --> 00:39:37,199 has the same aspects 951 00:39:37,199 --> 00:39:40,940 involved this is city-owned land and so it was solid wast 952 00:39:40,940 --> 00:39:42,199 eland it was designated 953 00:39:42,199 --> 00:39:44,599 through a lot of governmental and public involvement 954 00:39:44,599 --> 00:39:45,880 meetings as a substation 955 00:39:45,880 --> 00:39:49,079 site the Eagle substation site that you mentioned has been 956 00:39:49,079 --> 00:39:50,800 selected and we're in 957 00:39:50,800 --> 00:39:56,090 the procurement process for that it would be city site and 958 00:39:56,090 --> 00:39:57,400 so we're proposing 959 00:39:57,400 --> 00:40:00,199 the GIS station for that it's needed for the University of 960 00:40:00,199 --> 00:40:01,039 North Texas in the 961 00:40:01,039 --> 00:40:04,070 surrounding area and there aren't any other sites or other 962 00:40:04,070 --> 00:40:05,119 possibilities of 963 00:40:05,119 --> 00:40:08,619 how we pick up transmission loading and customer loading 964 00:40:08,619 --> 00:40:09,679 our general manager 965 00:40:09,679 --> 00:40:14,880 George Morrow may want to speak about that okay certainly 966 00:40:14,880 --> 00:40:17,119 George Morrow DME 967 00:40:17,119 --> 00:40:19,570 general manager just want to make a general statement you 968 00:40:19,570 --> 00:40:19,960 know we're 969 00:40:19,960 --> 00:40:23,699 relooking at our entire expansion plan for the T&D system I 970 00:40:23,699 --> 00:40:24,639 've not found 971 00:40:24,639 --> 00:40:28,679 anything that's not necessary or needed but the question is 972 00:40:28,679 --> 00:40:29,920 what timeframes and 973 00:40:29,920 --> 00:40:32,550 so we may be pushing out some of the timeframes trying to 974 00:40:32,550 --> 00:40:33,199 smooth our 975 00:40:33,199 --> 00:40:37,440 financial impacts repair cost impacts of some of this stuff 976 00:40:37,440 --> 00:40:38,400 I mean there was a 977 00:40:38,400 --> 00:40:40,909 lot of synergies at one time we were moving forward with as 978 00:40:40,909 --> 00:40:41,599 Brent mentioned 979 00:40:41,599 --> 00:40:46,280 just a ton of expansion why not get it way ahead of the of 980 00:40:46,280 --> 00:40:49,440 the need but we may 981 00:40:49,440 --> 00:40:51,360 be coming back at some point and saying we're gonna smooth 982 00:40:51,360 --> 00:40:52,039 some of this stuff 983 00:40:52,039 --> 00:40:55,050 out and but nothing that's on the drawing board at this 984 00:40:55,050 --> 00:40:56,079 point is we're not 985 00:40:56,079 --> 00:40:59,489 saying that's not needed so you know the others are still 986 00:40:59,489 --> 00:41:00,880 part of the plan sure 987 00:41:00,880 --> 00:41:06,320 you can stay there one of the things that it does for me is 988 00:41:06,320 --> 00:41:07,480 as I when I came 989 00:41:07,480 --> 00:41:10,300 on the PUB and y'all started showing me these maps and the 990 00:41:10,300 --> 00:41:11,280 high voltage lines 991 00:41:11,280 --> 00:41:14,570 and how they run and we start proposing these things well 992 00:41:14,570 --> 00:41:15,780 people from this the 993 00:41:15,780 --> 00:41:18,230 public start coming they say were you really not supposed 994 00:41:18,230 --> 00:41:19,239 to put a substation 995 00:41:19,239 --> 00:41:21,900 right here in the middle of the city you know it's you know 996 00:41:21,900 --> 00:41:22,679 this the one that 997 00:41:22,679 --> 00:41:25,300 worked that you just were referencing is right there on 998 00:41:25,300 --> 00:41:26,719 Eagle Drive there's 999 00:41:26,719 --> 00:41:30,789 there's big tall buildings around part of it and this 1000 00:41:30,789 --> 00:41:32,719 university and student 1001 00:41:32,719 --> 00:41:34,969 housing and things like that and people are saying well 1002 00:41:34,969 --> 00:41:35,719 sometimes people will 1003 00:41:35,719 --> 00:41:38,360 locate those to the outs on the edges of town and bring 1004 00:41:38,360 --> 00:41:39,639 them in with a high 1005 00:41:39,639 --> 00:41:42,690 voltage transmission line and you guys actually not you 1006 00:41:42,690 --> 00:41:43,940 personally but it was 1007 00:41:43,940 --> 00:41:46,329 kind of the consensus of staff was no we really don't do 1008 00:41:46,329 --> 00:41:47,280 that here we put them 1009 00:41:47,280 --> 00:41:49,409 we're gonna put it here because that high transmission line 1010 00:41:49,409 --> 00:41:49,960 doesn't really 1011 00:41:49,960 --> 00:41:52,210 work like that and now kind of what we're seeing is 1012 00:41:52,210 --> 00:41:53,280 actually you could do 1013 00:41:53,280 --> 00:41:56,039 something like that and locate that substation in a 1014 00:41:56,039 --> 00:41:57,199 different area instead 1015 00:41:57,199 --> 00:42:00,280 of right there and bring that power in with a high 1016 00:42:00,280 --> 00:42:02,280 transmission line so I'm now 1017 00:42:02,280 --> 00:42:05,250 seeing something new a new way we could approach doing 1018 00:42:05,250 --> 00:42:06,480 something that I thought 1019 00:42:06,480 --> 00:42:10,690 really wasn't how we approach doing things just yes and no 1020 00:42:10,690 --> 00:42:11,460 we're getting a 1021 00:42:11,460 --> 00:42:17,719 little bit off the posting by getting into overall stuff 1022 00:42:17,719 --> 00:42:18,199 and I know it's well 1023 00:42:18,199 --> 00:42:21,710 that's I know but we're still posted a subject so we got to 1024 00:42:21,710 --> 00:42:22,920 stick to that it's 1025 00:42:22,920 --> 00:42:27,440 not a wide open if we want to do a work session is this the 1026 00:42:27,440 --> 00:42:28,079 first time you've 1027 00:42:28,079 --> 00:42:30,800 ever seen this high transmission line solution I'm just 1028 00:42:30,800 --> 00:42:31,679 trying to learn about 1029 00:42:31,679 --> 00:42:37,000 it no I agree and maybe we need a work session on on what 1030 00:42:37,000 --> 00:42:38,219 George said what is 1031 00:42:38,219 --> 00:42:42,610 our what is our overall capital improvement program and how 1032 00:42:42,610 --> 00:42:43,199 do we go 1033 00:42:43,199 --> 00:42:48,769 forward with that and it may include more and I don't want 1034 00:42:48,769 --> 00:42:49,519 to keep she 1035 00:42:49,519 --> 00:42:54,320 actually asked for that yes Deb asked for that and what we 1036 00:42:54,320 --> 00:42:55,800 got it was in a 1037 00:42:55,800 --> 00:43:01,639 memo in the in this ACM update we didn't actually get any 1038 00:43:01,639 --> 00:43:03,380 kind of information we 1039 00:43:03,380 --> 00:43:05,869 got something that we got to read and nobody actually got 1040 00:43:05,869 --> 00:43:06,639 up in front of us 1041 00:43:06,639 --> 00:43:09,610 and addressed it she asked for it yeah so she may have 1042 00:43:09,610 --> 00:43:10,539 approached him and met 1043 00:43:10,539 --> 00:43:13,510 him later and got more information but we never really got 1044 00:43:13,510 --> 00:43:14,860 much information well 1045 00:43:14,860 --> 00:43:17,110 we do we do intend to come back if I could jump in just 1046 00:43:17,110 --> 00:43:17,920 quickly we do intend 1047 00:43:17,920 --> 00:43:20,889 to come back at some point as we you know as I get my arm 1048 00:43:20,889 --> 00:43:21,760 around all the 1049 00:43:21,760 --> 00:43:25,000 pieces and we have additional dialogue internally about you 1050 00:43:25,000 --> 00:43:25,960 know what impacts 1051 00:43:25,960 --> 00:43:28,460 will there be to the TND plan that you've sort of adopted 1052 00:43:28,460 --> 00:43:29,239 and seen before 1053 00:43:29,239 --> 00:43:33,210 what smoothing are we going to be doing you know what time 1054 00:43:33,210 --> 00:43:35,019 frames so we'll be 1055 00:43:35,019 --> 00:43:38,849 back I think this solution is not going to be one that's 1056 00:43:38,849 --> 00:43:40,440 adaptable in too many 1057 00:43:40,440 --> 00:43:44,389 other if any locations you've got to have substations to 1058 00:43:44,389 --> 00:43:45,960 serve customers you 1059 00:43:45,960 --> 00:43:48,130 know you can't serve them off the transmission line so the 1060 00:43:48,130 --> 00:43:48,679 substations 1061 00:43:48,679 --> 00:43:51,489 allow you to drop down the voltage to distribution voltage 1062 00:43:51,489 --> 00:43:52,480 to serve customers 1063 00:43:52,480 --> 00:43:55,300 and customers turn out that they're in the center of most 1064 00:43:55,300 --> 00:43:56,360 urban areas they're 1065 00:43:56,360 --> 00:43:59,610 not on the fringes and so we really need to put the subst 1066 00:43:59,610 --> 00:44:00,920 ations unfortunately 1067 00:44:00,920 --> 00:44:04,139 because there's some impact in areas where we have the high 1068 00:44:04,139 --> 00:44:05,119 load and where we 1069 00:44:05,119 --> 00:44:07,699 have customers so I've struggled with that my whole career 1070 00:44:07,699 --> 00:44:08,519 it's tough and it's 1071 00:44:08,519 --> 00:44:10,909 tricky to have to drill and put that substation in an 1072 00:44:10,909 --> 00:44:12,000 existing residential 1073 00:44:12,000 --> 00:44:14,599 area but sometimes you know it couldn't have been predicted 1074 00:44:14,599 --> 00:44:16,079 20 or 25 years ago 1075 00:44:16,079 --> 00:44:19,369 exactly how that growth was going to come and so we have to 1076 00:44:19,369 --> 00:44:20,000 we have to 1077 00:44:20,000 --> 00:44:23,320 shoehorn them in there and unfortunately for for that but 1078 00:44:23,320 --> 00:44:24,800 we can't serve local 1079 00:44:24,800 --> 00:44:31,559 center of town customers from the edges I guess simply put 1080 00:44:31,559 --> 00:44:32,119 you just said you're 1081 00:44:32,119 --> 00:44:35,619 struggling putting together all the pieces and we'd count 1082 00:44:35,619 --> 00:44:36,280 on you to put 1083 00:44:36,280 --> 00:44:39,079 together the pieces to give them to us and we're struggling 1084 00:44:39,079 --> 00:44:40,280 to put together the 1085 00:44:40,280 --> 00:44:43,280 pieces too and if you are I'm not struggling I'm not really 1086 00:44:43,280 --> 00:44:43,960 not struggling 1087 00:44:43,960 --> 00:44:47,199 but I'm you said I was just saying what you said right okay 1088 00:44:47,199 --> 00:44:47,719 I'll pick a better 1089 00:44:47,719 --> 00:44:50,880 word okay I'm very casual sometimes with my language yeah 1090 00:44:50,880 --> 00:44:51,559 so we're working 1091 00:44:51,559 --> 00:44:54,670 through that I'm working through that with the staff there 1092 00:44:54,670 --> 00:44:55,639 's a lot of pieces 1093 00:44:55,639 --> 00:44:58,440 and moving parts want to be really sure about how if I'm 1094 00:44:58,440 --> 00:44:59,280 gonna make any 1095 00:44:59,280 --> 00:45:01,690 adjustments going forward I want to be very certain of the 1096 00:45:01,690 --> 00:45:02,400 impact of those 1097 00:45:02,400 --> 00:45:04,829 things and sometimes the leg bones connected to the 1098 00:45:04,829 --> 00:45:06,079 different parts that you 1099 00:45:06,079 --> 00:45:09,050 didn't you didn't realize when you when you start moving 1100 00:45:09,050 --> 00:45:10,400 things around so yeah 1101 00:45:10,400 --> 00:45:16,190 well I will I will say in light of we discovered today 1102 00:45:16,190 --> 00:45:16,960 there was a new 1103 00:45:16,960 --> 00:45:21,929 solution to these type of things that we I would like to 1104 00:45:21,929 --> 00:45:23,679 see a work session 1105 00:45:23,679 --> 00:45:31,960 dedicated to capital improvements and the FERC report yes 1106 00:45:31,960 --> 00:45:39,119 if we can okay I'm 1107 00:45:39,119 --> 00:45:42,300 sorry no I just wanted to add that actually that Brandon's 1108 00:45:42,300 --> 00:45:43,000 question I had 1109 00:45:43,000 --> 00:45:45,619 the same exact question that I was going to ask so I 1110 00:45:45,619 --> 00:45:46,760 appreciate that question 1111 00:45:46,760 --> 00:45:50,500 and I do think that it's it's relevant and I do think you 1112 00:45:50,500 --> 00:45:51,480 know if there's one 1113 00:45:51,480 --> 00:45:53,699 I mean there are a number of lessons to you know to be to 1114 00:45:53,699 --> 00:45:54,599 be learned from all 1115 00:45:54,599 --> 00:46:00,079 this but but I think that one is a lesson for the future is 1116 00:46:00,079 --> 00:46:01,119 to really think 1117 00:46:01,119 --> 00:46:06,369 about you know how much in terms of building out for the 1118 00:46:06,369 --> 00:46:07,599 growth can can we 1119 00:46:07,599 --> 00:46:14,539 defer and safely defer into the future because the the you 1120 00:46:14,539 --> 00:46:16,320 know the O and R 1121 00:46:16,320 --> 00:46:19,110 costs you know for instance if we build a substation now 1122 00:46:19,110 --> 00:46:20,639 you know even if this 1123 00:46:20,639 --> 00:46:24,380 wasn't a problem with the location right you know if we say 1124 00:46:24,380 --> 00:46:25,719 this wasn't an issue 1125 00:46:25,719 --> 00:46:31,289 with the landfill still you know if it wasn't needed you 1126 00:46:31,289 --> 00:46:32,440 know in the immediate 1127 00:46:32,440 --> 00:46:36,929 future so so that's just something that it's something I've 1128 00:46:36,929 --> 00:46:37,519 always wondered 1129 00:46:37,519 --> 00:46:42,090 about you know why the this why we had the timeline that we 1130 00:46:42,090 --> 00:46:43,559 did for building 1131 00:46:43,559 --> 00:46:48,630 out our you know our substations for the growth and from 1132 00:46:48,630 --> 00:46:50,320 you know the amateur 1133 00:46:50,320 --> 00:46:53,840 research I've done it seems that you know that the standard 1134 00:46:53,840 --> 00:46:56,039 practice is to 1135 00:46:56,039 --> 00:47:00,389 really wait until you know that it's going to be a need in 1136 00:47:00,389 --> 00:47:01,480 the relative 1137 00:47:01,480 --> 00:47:05,360 immediate future you don't want to wait too long right 1138 00:47:05,360 --> 00:47:06,719 gonna make sure you have 1139 00:47:06,719 --> 00:47:10,670 a site so you've got to get the site ahead of the need and 1140 00:47:10,670 --> 00:47:11,760 and as you defer 1141 00:47:11,760 --> 00:47:14,920 in the future costs go up right new construction costs 1142 00:47:14,920 --> 00:47:15,719 escalate costs 1143 00:47:15,719 --> 00:47:18,380 increase so that kept those two things way together I think 1144 00:47:18,380 --> 00:47:19,559 as Brent said when 1145 00:47:19,559 --> 00:47:23,300 he started this whole discussion that and I concur 100% the 1146 00:47:23,300 --> 00:47:23,960 substation is 1147 00:47:23,960 --> 00:47:28,559 still a good project for us at that landfill site it just 1148 00:47:28,559 --> 00:47:29,840 gives some extra 1149 00:47:29,840 --> 00:47:32,280 flexibility but it might be something we don't need till 15 1150 00:47:32,280 --> 00:47:33,280 or 20 years down the 1151 00:47:33,280 --> 00:47:36,389 road it gives us some enhanced reliability we can do some 1152 00:47:36,389 --> 00:47:37,000 switching of 1153 00:47:37,000 --> 00:47:40,739 circuits to improve performance in an area if some things 1154 00:47:40,739 --> 00:47:41,480 we didn't plan for 1155 00:47:41,480 --> 00:47:44,369 happen you know that circuit goes out unexpectedly we have 1156 00:47:44,369 --> 00:47:44,880 a little bit 1157 00:47:44,880 --> 00:47:47,880 additional flexibility so there's some value to that and so 1158 00:47:47,880 --> 00:47:48,760 I think the staff 1159 00:47:48,760 --> 00:47:52,500 was trying to program in that value early and in return the 1160 00:47:52,500 --> 00:47:53,480 substation would 1161 00:47:53,480 --> 00:47:58,039 be there if and when the growth would come to that area so 1162 00:47:58,039 --> 00:47:58,679 I know it's a 1163 00:47:58,679 --> 00:48:02,980 little bit complicated so I think the substation you know 1164 00:48:02,980 --> 00:48:04,079 when you look at it 1165 00:48:04,079 --> 00:48:06,989 really hard for the you know the next let's say two decades 1166 00:48:06,989 --> 00:48:07,639 I think Brent 1167 00:48:07,639 --> 00:48:11,710 mentioned that probably not a critical urgent need but at 1168 00:48:11,710 --> 00:48:12,599 some point in time 1169 00:48:12,599 --> 00:48:15,000 something probably we would need to do out there and and we 1170 00:48:15,000 --> 00:48:15,719 'll be looking at 1171 00:48:15,719 --> 00:48:23,360 that in the future thank you okay any other comments or 1172 00:48:23,360 --> 00:48:27,440 questions so I guess 1173 00:48:27,440 --> 00:48:32,280 the direction you need direction from the PB on I mean your 1174 00:48:32,280 --> 00:48:33,280 plan is presented 1175 00:48:33,280 --> 00:48:36,590 to we don't need actually need to have a vote on it it's 1176 00:48:36,590 --> 00:48:38,320 not a voting item but if 1177 00:48:38,320 --> 00:48:44,960 there's a direction I guess I like the new proposal myself 1178 00:48:44,960 --> 00:48:47,320 okay yeah I feel I'm 1179 00:48:47,320 --> 00:48:51,769 hearing yes to the transmission only option and yes to 1180 00:48:51,769 --> 00:48:53,320 deferring discussion 1181 00:48:53,320 --> 00:48:58,889 of the future substation placement okay thank you very much 1182 00:48:58,889 --> 00:49:01,440 appreciate your time 1183 00:49:01,440 --> 00:49:06,820 okay next next in the work session we have item B which is 1184 00:49:06,820 --> 00:49:08,280 to receive a report 1185 00:49:08,280 --> 00:49:12,039 hold a discussion and provide staff direction regarding an 1186 00:49:12,039 --> 00:49:12,920 update to the 1187 00:49:12,920 --> 00:49:18,119 existing municipal electric energy risk management policy 1188 00:49:18,119 --> 00:49:19,760 George Morrill DMA 1189 00:49:19,760 --> 00:49:23,500 general manager again you may recall early in my tenure I 1190 00:49:23,500 --> 00:49:24,159 said I would be 1191 00:49:24,159 --> 00:49:27,900 back to talk about our energy risk management policy and 1192 00:49:27,900 --> 00:49:29,219 that's what I'm 1193 00:49:29,219 --> 00:49:32,760 here for today the original policy the policy that we 1194 00:49:32,760 --> 00:49:33,800 operate under today was 1195 00:49:33,800 --> 00:49:37,539 adopted back in 2014 about six months ahead of us taking 1196 00:49:37,539 --> 00:49:38,159 over our and 1197 00:49:38,159 --> 00:49:42,949 establishing our own trading operation at DME and you know 1198 00:49:42,949 --> 00:49:44,599 through that three or 1199 00:49:44,599 --> 00:49:46,889 four year period things have changed the organization's 1200 00:49:46,889 --> 00:49:47,940 changed the markets have 1201 00:49:47,940 --> 00:49:51,989 changed we've learned some things and so it made sense to 1202 00:49:51,989 --> 00:49:54,719 to update the policy 1203 00:49:54,719 --> 00:49:57,269 and we had Deloitte who did a very nice job you remember 1204 00:49:57,269 --> 00:49:58,440 the presentation from 1205 00:49:58,440 --> 00:50:01,579 Deloitte late last year they had a lot of great ideas for 1206 00:50:01,579 --> 00:50:02,920 us and many of which 1207 00:50:02,920 --> 00:50:05,739 and most of which we agreed with and we wanted to 1208 00:50:05,739 --> 00:50:07,559 incorporate into an updated 1209 00:50:07,559 --> 00:50:12,309 policy so policies needed of course because it provides a 1210 00:50:12,309 --> 00:50:12,920 framework and 1211 00:50:12,920 --> 00:50:17,599 guidelines for the energy management trading organization 1212 00:50:17,599 --> 00:50:19,000 at DME there 1213 00:50:19,000 --> 00:50:21,780 provide some checks and balances it gives some like I said 1214 00:50:21,780 --> 00:50:22,760 some structure to 1215 00:50:22,760 --> 00:50:27,389 what we're doing in the markets and it also allows us to it 1216 00:50:27,389 --> 00:50:28,039 gives us some 1217 00:50:28,039 --> 00:50:31,789 direction on reporting back to the council the PUB 1218 00:50:31,789 --> 00:50:33,440 internally what is what 1219 00:50:33,440 --> 00:50:37,460 what would the framework be for this for this for policy 1220 00:50:37,460 --> 00:50:40,480 decisions so real time 1221 00:50:40,480 --> 00:50:43,239 here's just a little bit of what we do out there real time 1222 00:50:43,239 --> 00:50:44,159 we're buying and 1223 00:50:44,159 --> 00:50:48,889 selling selling power where we're balancing our resources 1224 00:50:48,889 --> 00:50:49,760 to match our 1225 00:50:49,760 --> 00:50:54,380 loads and we're looking forward and trying to make sure we 1226 00:50:54,380 --> 00:50:54,920 have enough 1227 00:50:54,920 --> 00:50:59,079 resources during periods and making decisions about hey if 1228 00:50:59,079 --> 00:50:59,960 we're short you 1229 00:50:59,960 --> 00:51:02,349 know do we need to buy something when that you know when 1230 00:51:02,349 --> 00:51:03,119 the markets are 1231 00:51:03,119 --> 00:51:08,250 supportive of doing that in the longer term we're trying to 1232 00:51:08,250 --> 00:51:09,880 look at the big 1233 00:51:09,880 --> 00:51:12,630 picture integrating a lot of these new renewables that we 1234 00:51:12,630 --> 00:51:13,400 have that's going to 1235 00:51:13,400 --> 00:51:16,679 require a little bit different paradigm for us managing the 1236 00:51:16,679 --> 00:51:17,480 partners that we're 1237 00:51:17,480 --> 00:51:20,449 buying and selling to making sure they're adequately 1238 00:51:20,449 --> 00:51:21,760 collateralized and so 1239 00:51:21,760 --> 00:51:25,969 forth and so that's those are the two time frames for for 1240 00:51:25,969 --> 00:51:27,360 the risk management 1241 00:51:27,360 --> 00:51:33,010 policy so there's three pieces to the Emo we have front 1242 00:51:33,010 --> 00:51:33,960 office middle office 1243 00:51:33,960 --> 00:51:39,670 back office front office is doing the real-time trading and 1244 00:51:39,670 --> 00:51:40,719 the near red time 1245 00:51:40,719 --> 00:51:46,519 real-time type transactional efforts the middle office a 1246 00:51:46,519 --> 00:51:47,159 little bit like the 1247 00:51:47,159 --> 00:51:51,170 traffic cop it's checks and balances risk control it's an 1248 00:51:51,170 --> 00:51:52,559 independent as 1249 00:51:52,559 --> 00:51:55,730 standalone type operation looking at what we're doing and 1250 00:51:55,730 --> 00:51:56,760 why we're doing it 1251 00:51:56,760 --> 00:51:59,679 and making sure that we have business relationships that 1252 00:51:59,679 --> 00:52:00,760 are sound with other 1253 00:52:00,760 --> 00:52:05,840 parties to do it then the back office is taking care of our 1254 00:52:05,840 --> 00:52:06,920 contract 1255 00:52:06,920 --> 00:52:10,170 administration paying bills making sure we have funds and 1256 00:52:10,170 --> 00:52:12,079 so forth for that this 1257 00:52:12,079 --> 00:52:13,860 is a little bit of what it looks like and have a few of 1258 00:52:13,860 --> 00:52:14,840 those folks here today I 1259 00:52:14,840 --> 00:52:20,949 wanted to introduce in the back office we have Michael 1260 00:52:20,949 --> 00:52:21,679 Wilson who's our 1261 00:52:21,679 --> 00:52:26,219 settlements and rate administrator so he's taking care of 1262 00:52:26,219 --> 00:52:26,840 all the you know the 1263 00:52:26,840 --> 00:52:30,340 calculations to make sure that we're being billed correctly 1264 00:52:30,340 --> 00:52:30,920 by all the 1265 00:52:30,920 --> 00:52:34,280 counterparties and by aircott in the front office we have 1266 00:52:34,280 --> 00:52:35,280 Stephen Johnson 1267 00:52:35,280 --> 00:52:39,610 who's our market operations manager he manages all the real 1268 00:52:39,610 --> 00:52:40,480 -time around-the-clock 1269 00:52:40,480 --> 00:52:46,250 folks that are keeping an eye on things and balancing our 1270 00:52:46,250 --> 00:52:48,679 load and the we have 1271 00:52:48,679 --> 00:52:54,550 Smith day who oversees the middle office and our senior 1272 00:52:54,550 --> 00:52:56,559 risk control analyst Phil 1273 00:52:56,559 --> 00:53:00,719 Deepestina he's here and Phil's going to take over a little 1274 00:53:00,719 --> 00:53:01,119 bit of this 1275 00:53:01,119 --> 00:53:03,579 presentation there's some nuts and bolts that I wanted him 1276 00:53:03,579 --> 00:53:04,599 to go through but I 1277 00:53:04,599 --> 00:53:06,949 wanted to talk about him a little bit because I was a bit 1278 00:53:06,949 --> 00:53:07,800 surprised to find 1279 00:53:07,800 --> 00:53:11,880 him on our staff Phil has a lot of experience he's got over 1280 00:53:11,880 --> 00:53:12,920 35 years in 1281 00:53:12,920 --> 00:53:17,130 risk management for electric utilities he set up managed 1282 00:53:17,130 --> 00:53:18,639 the front middle and 1283 00:53:18,639 --> 00:53:21,739 back office at Pacific gas and electric at a time when PG&E 1284 00:53:21,739 --> 00:53:22,679 was the largest 1285 00:53:22,679 --> 00:53:25,750 electric utility in the country and I'm like pretty amazed 1286 00:53:25,750 --> 00:53:26,679 to find he's here 1287 00:53:26,679 --> 00:53:31,440 with us he also set up an enterprise wide risk management 1288 00:53:31,440 --> 00:53:32,519 program at aircott 1289 00:53:32,519 --> 00:53:37,869 he set that up and managed that for a number of years and 1290 00:53:37,869 --> 00:53:39,440 so decided to come 1291 00:53:39,440 --> 00:53:43,980 to DME and he's he's our traffic cop that I mentioned 1292 00:53:43,980 --> 00:53:45,760 earlier so he's has 1293 00:53:45,760 --> 00:53:52,449 that kind of background and so we're he's here to kind of 1294 00:53:52,449 --> 00:53:53,880 take over Phil if 1295 00:53:53,880 --> 00:53:55,800 you want to come up and he's going to talk specifically 1296 00:53:55,800 --> 00:53:56,599 about the Deloitte 1297 00:53:56,599 --> 00:53:59,280 recommendations we tried to integrate as much of the Delo 1298 00:53:59,280 --> 00:54:00,400 itte recommendations 1299 00:54:00,400 --> 00:54:03,920 as possible into the energy risk management policy now that 1300 00:54:03,920 --> 00:54:04,679 we could but 1301 00:54:04,679 --> 00:54:09,699 it's really a two-part process for us and we have some high 1302 00:54:09,699 --> 00:54:10,840 priority low 1303 00:54:10,840 --> 00:54:13,480 hanging fruit that is before you today that we've 1304 00:54:13,480 --> 00:54:15,079 integrated and then we'll be 1305 00:54:15,079 --> 00:54:18,090 moving forward to do a little more work on some of the 1306 00:54:18,090 --> 00:54:19,639 middle or lower priority 1307 00:54:19,639 --> 00:54:22,929 items going forward and I perceive even a further dialogue 1308 00:54:22,929 --> 00:54:23,880 with the public 1309 00:54:23,880 --> 00:54:27,059 utility board about what I'm calling risk appetite you know 1310 00:54:27,059 --> 00:54:27,599 how much you know 1311 00:54:27,599 --> 00:54:31,130 what should be our risk profile here as a publicly owned 1312 00:54:31,130 --> 00:54:32,880 community owned utility 1313 00:54:32,880 --> 00:54:37,039 and that's an area that we want to share some things with 1314 00:54:37,039 --> 00:54:38,559 you and get your input 1315 00:54:38,559 --> 00:54:41,699 at a later date so Phil if you want to come up and I 1316 00:54:41,699 --> 00:54:42,960 dragged him out of the 1317 00:54:42,960 --> 00:54:50,050 comfort of his office to do this so hope he hope he doesn't 1318 00:54:50,050 --> 00:54:51,920 mind hi I'm Philip 1319 00:54:51,920 --> 00:54:59,599 de Pastina senior risk control analyst for DME and as 1320 00:54:59,599 --> 00:55:01,880 George mentioned we're 1321 00:55:01,880 --> 00:55:07,500 bringing to you a draft of the risk policy which we've 1322 00:55:07,500 --> 00:55:09,840 updated I'd like to 1323 00:55:09,840 --> 00:55:14,599 go over a few of the kind of the highlights first of what 1324 00:55:14,599 --> 00:55:15,760 what's different 1325 00:55:15,760 --> 00:55:22,449 about this this version one of the things we've done is we 1326 00:55:22,449 --> 00:55:23,880 've streamlined it 1327 00:55:23,880 --> 00:55:30,590 the first section and provided some clarification of what 1328 00:55:30,590 --> 00:55:32,440 the why we have it 1329 00:55:32,440 --> 00:55:40,239 in the first place what the program goals are which are to 1330 00:55:40,239 --> 00:55:42,119 use the Emo to 1331 00:55:42,119 --> 00:55:47,920 help integrate the renewable resources through short-term 1332 00:55:47,920 --> 00:55:49,360 market transactions 1333 00:55:49,360 --> 00:55:55,960 and to minimize the risk of in doing that of affecting the 1334 00:55:55,960 --> 00:55:58,000 rate payer risks 1335 00:55:58,000 --> 00:56:03,309 the rate payer rates adversely the second thing we're doing 1336 00:56:03,309 --> 00:56:04,119 is we're 1337 00:56:04,119 --> 00:56:08,619 consolidating what we formerly had two risk committees we 1338 00:56:08,619 --> 00:56:10,000 're consolidating them 1339 00:56:10,000 --> 00:56:19,150 into one single risk oversight committee we're also 1340 00:56:19,150 --> 00:56:21,000 highlighting the fact that we 1341 00:56:21,000 --> 00:56:27,110 need a number of counterparties to diversify our the risk 1342 00:56:27,110 --> 00:56:28,599 that goes with 1343 00:56:28,599 --> 00:56:32,840 dealing with them and to ensure that we're getting the 1344 00:56:32,840 --> 00:56:34,199 competitive market 1345 00:56:34,199 --> 00:56:41,289 price when we buy or sell electricity one of the 1346 00:56:41,289 --> 00:56:44,000 recommendations we received 1347 00:56:44,000 --> 00:56:49,199 from Deloitte was that we needed to improve the quality and 1348 00:56:49,199 --> 00:56:50,559 frequency of our 1349 00:56:50,559 --> 00:56:55,400 communication with the pub and the City Council so we're 1350 00:56:55,400 --> 00:56:56,719 incorporating changes 1351 00:56:56,719 --> 00:57:03,519 in that risk policy to do that also we were it was a 1352 00:57:03,519 --> 00:57:07,079 suggestion that we provide 1353 00:57:07,079 --> 00:57:14,780 more specificity in our risk limits and how we control the 1354 00:57:14,780 --> 00:57:16,199 the kind of deals 1355 00:57:16,199 --> 00:57:25,159 that we the emo does as well as additional detail on the 1356 00:57:25,159 --> 00:57:26,000 types of 1357 00:57:26,000 --> 00:57:29,739 transactions that they can do and so we've incorporated 1358 00:57:29,739 --> 00:57:30,920 those things in the 1359 00:57:30,920 --> 00:57:37,699 this new risk policy in addition to the policy itself that 1360 00:57:37,699 --> 00:57:39,119 we've included in 1361 00:57:39,119 --> 00:57:44,400 your package we summarized the recommendations that Delo 1362 00:57:44,400 --> 00:57:45,440 itte brought to 1363 00:57:45,440 --> 00:57:52,400 you I think it was on December 11th they had a number of 1364 00:57:52,400 --> 00:57:54,679 recommendations about 60 1365 00:57:54,679 --> 00:57:59,869 that were broken into high medium and low priorities and we 1366 00:57:59,869 --> 00:58:03,599 've taken those and 1367 00:58:03,599 --> 00:58:07,559 and try to figure out where we can where we can address 1368 00:58:07,559 --> 00:58:09,360 those in our risk policy 1369 00:58:09,360 --> 00:58:17,320 and we've done that and this is just a graphic to show that 1370 00:58:17,320 --> 00:58:21,199 yes we're gonna 1371 00:58:21,199 --> 00:58:29,599 pull up the Deloitte matrix that was attached to the report 1372 00:58:29,599 --> 00:58:30,159 let's see how do 1373 00:58:30,159 --> 00:58:40,360 we have that's it how do we blow this up or do we okay as I 1374 00:58:40,360 --> 00:58:41,000 mentioned there's a 1375 00:58:41,000 --> 00:58:47,260 high medium and low priorities that Deloitte recommended 1376 00:58:47,260 --> 00:58:48,159 some of them I've 1377 00:58:48,159 --> 00:58:51,960 already discussed we've 1378 00:58:55,360 --> 00:59:03,320 reassess our the policy itself we've updated a number of 1379 00:59:03,320 --> 00:59:06,159 the of the policy 1380 00:59:06,159 --> 00:59:11,030 and we're in the process of updating procedure operating 1381 00:59:11,030 --> 00:59:13,039 procedures we've 1382 00:59:13,039 --> 00:59:17,699 consolidated the risk policy the risk oversight function 1383 00:59:17,699 --> 00:59:18,800 into a single 1384 00:59:18,800 --> 00:59:21,159 committee 1385 00:59:27,079 --> 00:59:45,230 medium priorities we've we're we've we're going to provide 1386 00:59:45,230 --> 00:59:47,039 the minutes of 1387 00:59:47,039 --> 00:59:51,929 our quarterly risk committee meetings to the council and 1388 00:59:51,929 --> 00:59:53,840 the pub so you can see 1389 00:59:53,840 --> 01:00:01,289 more of what's going on and and what the Emo is is doing we 1390 01:00:01,289 --> 01:00:03,440 've established a 1391 01:00:03,440 --> 01:00:09,550 clear set of guidelines for how the committees work and 1392 01:00:09,550 --> 01:00:11,239 established a more 1393 01:00:11,239 --> 01:00:25,309 formal oversight process the Deloitte recommended that we 1394 01:00:25,309 --> 01:00:28,119 institute some 1395 01:00:28,119 --> 01:00:32,639 processes for more formally transferring knowledge around 1396 01:00:32,639 --> 01:00:34,239 the Emo so that 1397 01:00:34,239 --> 01:00:38,369 everyone understands what the rules are who does what and 1398 01:00:38,369 --> 01:00:40,199 how things should 1399 01:00:40,199 --> 01:00:52,760 operate and then there's a number of low lower priority 1400 01:00:52,760 --> 01:00:54,440 items most of these will 1401 01:00:54,440 --> 01:01:00,269 be brought to you and incorporated in the risk policy and 1402 01:01:00,269 --> 01:01:01,360 what we're calling 1403 01:01:01,360 --> 01:01:05,590 phase two later in this year and that's where we're 1404 01:01:05,590 --> 01:01:08,000 developing reports and 1405 01:01:08,000 --> 01:01:17,269 actually asking for your approval of risk metric measures 1406 01:01:17,269 --> 01:01:19,719 and evaluate how how 1407 01:01:19,719 --> 01:01:26,590 we evaluate the performance of the Emo so I'm happy to go 1408 01:01:26,590 --> 01:01:29,320 into any of these 1409 01:01:29,320 --> 01:01:34,519 items if if you have questions about them 1410 01:01:38,000 --> 01:01:41,000 questions 1411 01:01:45,000 --> 01:01:48,780 scroll back to something that was a procedure rather than a 1412 01:01:48,780 --> 01:01:49,719 policy update 1413 01:01:49,719 --> 01:01:53,460 that you can just give us some details about how you change 1414 01:01:53,460 --> 01:01:54,599 the procedure and 1415 01:01:54,599 --> 01:01:57,929 what you did because a policy I know you we could just read 1416 01:01:57,929 --> 01:01:58,760 it and say oh well 1417 01:01:58,760 --> 01:02:01,809 that's how you changed it but have you implemented any 1418 01:02:01,809 --> 01:02:03,840 procedures based on the 1419 01:02:03,840 --> 01:02:08,480 recommendations from Deloitte that you want to share with 1420 01:02:08,480 --> 01:02:15,920 us the procedures are 1421 01:02:15,920 --> 01:02:21,429 being updated currently okay and we're kind of waiting 1422 01:02:21,429 --> 01:02:22,800 until we get the the 1423 01:02:22,800 --> 01:02:27,880 risk management committee meeting so we can go to them and 1424 01:02:27,880 --> 01:02:28,719 ask them for their 1425 01:02:28,719 --> 01:02:33,800 approval okay on these okay okay so the most of those 1426 01:02:33,800 --> 01:02:34,960 things that are phase two 1427 01:02:34,960 --> 01:02:39,119 right okay right okay 1428 01:02:41,599 --> 01:02:47,710 questions there's also a number of these recommendations 1429 01:02:47,710 --> 01:02:48,760 that will be implemented 1430 01:02:48,760 --> 01:02:52,650 not in the risk policy itself or in the operating 1431 01:02:52,650 --> 01:02:54,960 procedures but for example 1432 01:02:54,960 --> 01:03:01,539 we're going to bring to you a recommendation to purchase a 1433 01:03:01,539 --> 01:03:03,039 new energy 1434 01:03:03,039 --> 01:03:08,199 trading system a database that tracks things and generates 1435 01:03:08,199 --> 01:03:10,639 reports and as part 1436 01:03:10,639 --> 01:03:15,840 of that a lot of these recommendations we included in the 1437 01:03:15,840 --> 01:03:17,119 specifications that 1438 01:03:17,119 --> 01:03:22,440 we seek in that do any of the items cover business 1439 01:03:22,440 --> 01:03:24,159 continuity or disaster 1440 01:03:24,159 --> 01:03:29,429 recovery those types of things certainly that'll be part of 1441 01:03:29,429 --> 01:03:31,119 the disaster would 1442 01:03:31,119 --> 01:03:37,230 would include the risk management system going down and yes 1443 01:03:37,230 --> 01:03:38,519 there'll be 1444 01:03:38,519 --> 01:03:42,260 procedures on what to do when that happens we already have 1445 01:03:42,260 --> 01:03:44,199 that if for 1446 01:03:44,199 --> 01:03:50,400 example if communications fail in the Emo office we've got 1447 01:03:50,400 --> 01:03:52,000 procedures on where 1448 01:03:52,000 --> 01:03:57,389 we can go to to resume operations okay thank you would it 1449 01:03:57,389 --> 01:03:58,679 be fair to say the 1450 01:03:58,679 --> 01:04:01,980 first phase was setting up the governance and the policy so 1451 01:04:01,980 --> 01:04:02,519 that the 1452 01:04:02,519 --> 01:04:06,880 second phase you get more into the details is that right 1453 01:04:06,880 --> 01:04:08,480 there's as the 1454 01:04:08,480 --> 01:04:12,760 earlier slide mentioned it's the low-hanging fruit right 1455 01:04:12,760 --> 01:04:15,280 and the immediate 1456 01:04:15,280 --> 01:04:21,389 most high priority things which is refining the governance 1457 01:04:21,389 --> 01:04:22,559 process and 1458 01:04:22,559 --> 01:04:29,699 establishing more clear steps on how the risk oversight 1459 01:04:29,699 --> 01:04:34,800 committee works okay 1460 01:04:34,800 --> 01:04:40,909 question okay I'll just say I'm glad to know that we have 1461 01:04:40,909 --> 01:04:41,920 somebody in house I 1462 01:04:41,920 --> 01:04:45,659 didn't know that either with a risk management such a 1463 01:04:45,659 --> 01:04:46,239 strong mission 1464 01:04:46,239 --> 01:04:49,210 management background who can implement the Deloitte 1465 01:04:49,210 --> 01:04:52,079 recommendations and I think 1466 01:04:52,079 --> 01:04:55,099 if there weren't that many you know questions for you today 1467 01:04:55,099 --> 01:04:56,000 it's because we 1468 01:04:56,000 --> 01:04:59,750 got had the Deloitte presentation and we asked a lot of 1469 01:04:59,750 --> 01:05:01,280 questions then and they 1470 01:05:01,280 --> 01:05:04,829 were really helpful and it's good to know that there's 1471 01:05:04,829 --> 01:05:06,699 somebody on staff 1472 01:05:06,699 --> 01:05:08,960 implementing that and I would just say as far as I guess 1473 01:05:08,960 --> 01:05:09,719 you're not quite 1474 01:05:09,719 --> 01:05:13,510 asking for direction on this but you know I would recommend 1475 01:05:13,510 --> 01:05:14,599 and it seemed to 1476 01:05:14,599 --> 01:05:19,829 me that Deloitte the way that they were assessing the kind 1477 01:05:19,829 --> 01:05:21,000 of risk in doing a 1478 01:05:21,000 --> 01:05:26,039 kind of triage on what needed to be you know what was 1479 01:05:26,039 --> 01:05:27,000 considered a high high 1480 01:05:27,000 --> 01:05:32,829 risk and why I would recommend you know minimal you know 1481 01:05:32,829 --> 01:05:34,440 the most conservative 1482 01:05:34,440 --> 01:05:41,300 approach and minimal risk approach possible because because 1483 01:05:41,300 --> 01:05:42,199 we're dealing 1484 01:05:42,199 --> 01:05:45,590 with with public with public money and obviously there's no 1485 01:05:45,590 --> 01:05:46,760 such thing as a no 1486 01:05:46,760 --> 01:05:50,980 risk approach but you know to just minimize the risk I 1487 01:05:50,980 --> 01:05:53,079 think would be the 1488 01:05:53,079 --> 01:05:58,440 way to go and I feel like that's kind of how this was that 1489 01:05:58,440 --> 01:06:00,039 how the what was in 1490 01:06:00,039 --> 01:06:04,849 mind as these priorities were assessed by Deloitte. I was 1491 01:06:04,849 --> 01:06:05,400 going to highlight a 1492 01:06:05,400 --> 01:06:09,880 few things Philip thank you. Thanks Phil. You know I was 1493 01:06:09,880 --> 01:06:12,519 impressed myself Philip and 1494 01:06:12,519 --> 01:06:15,800 our other members of our energy management organization 1495 01:06:15,800 --> 01:06:16,559 worked with 1496 01:06:16,559 --> 01:06:20,300 enterprise risk consulting to update the policy so we had 1497 01:06:20,300 --> 01:06:21,559 their eye on it but I 1498 01:06:21,559 --> 01:06:25,840 you know we've tried to keep it understandable and readable 1499 01:06:25,840 --> 01:06:28,519 and you know 1500 01:06:28,519 --> 01:06:32,590 without a lot of industry cryptics and so forth and we're 1501 01:06:32,590 --> 01:06:33,239 trying to be 1502 01:06:33,239 --> 01:06:38,809 transparent with the policy so we're we're opening up this 1503 01:06:38,809 --> 01:06:39,760 energy risk 1504 01:06:39,760 --> 01:06:42,730 management policy at this point didn't find anything in 1505 01:06:42,730 --> 01:06:43,679 there from my viewpoint 1506 01:06:43,679 --> 01:06:47,849 that would cause us any risk from a from a you know a 1507 01:06:47,849 --> 01:06:50,039 transactional standpoint 1508 01:06:50,039 --> 01:06:53,440 you can see we've updated some of the exhibits that are 1509 01:06:53,440 --> 01:06:54,800 really key to what we 1510 01:06:54,800 --> 01:06:58,630 do you know what are the authorities internally what are 1511 01:06:58,630 --> 01:06:59,400 the limits 1512 01:06:59,400 --> 01:07:06,239 internally both for electric physical and financial 1513 01:07:06,239 --> 01:07:07,800 electric and as well as 1514 01:07:07,800 --> 01:07:10,349 for physical and financial gas we're gonna be doing more 1515 01:07:10,349 --> 01:07:11,599 gas transacting as 1516 01:07:11,599 --> 01:07:15,849 we move forward we're involved with that right now so and 1517 01:07:15,849 --> 01:07:17,039 we're gonna be coming 1518 01:07:17,039 --> 01:07:20,070 out with other things that I think will will touch on what 1519 01:07:20,070 --> 01:07:20,960 I just heard and 1520 01:07:20,960 --> 01:07:25,030 that's also my perspective from years of being in the the 1521 01:07:25,030 --> 01:07:27,239 power business is to you 1522 01:07:27,239 --> 01:07:31,760 know this is a community owned citizen owned repair owned 1523 01:07:31,760 --> 01:07:35,280 enterprise taking a 1524 01:07:35,280 --> 01:07:38,420 lot of risks and risk management are so critical I'm very 1525 01:07:38,420 --> 01:07:39,880 conservative from the 1526 01:07:39,880 --> 01:07:42,800 risk profile standpoint I suspect you are but we'll have 1527 01:07:42,800 --> 01:07:43,039 that conversation 1528 01:07:43,039 --> 01:07:46,349 again as I mentioned we come back to you and I'll hear 1529 01:07:46,349 --> 01:07:47,639 comments from everybody 1530 01:07:47,639 --> 01:07:50,610 along the lines of what you know what how much risk should 1531 01:07:50,610 --> 01:07:51,199 we take and 1532 01:07:51,199 --> 01:07:53,639 shouldn't take and I think because this has been a bit 1533 01:07:53,639 --> 01:07:54,599 black box up to this 1534 01:07:54,599 --> 01:07:56,659 point there's been a lot of folks thinking hey you know 1535 01:07:56,659 --> 01:07:57,280 what's really 1536 01:07:57,280 --> 01:07:59,670 going on in there how much risk are they taking what are 1537 01:07:59,670 --> 01:08:00,480 they doing what 1538 01:08:00,480 --> 01:08:03,980 transactions are they making and you know there's a very 1539 01:08:03,980 --> 01:08:05,360 very detailed report 1540 01:08:05,360 --> 01:08:08,179 that we look at internally every single day that documents 1541 01:08:08,179 --> 01:08:08,880 every single 1542 01:08:08,880 --> 01:08:12,230 transaction that marks the value of every single resource 1543 01:08:12,230 --> 01:08:13,320 that we have going 1544 01:08:13,320 --> 01:08:16,289 out several years I mean we do it every day based on market 1545 01:08:16,289 --> 01:08:17,039 conditions it's 1546 01:08:17,039 --> 01:08:21,279 Philippus manages that and there's just we're on top of it 1547 01:08:21,279 --> 01:08:21,920 we're watching it 1548 01:08:21,920 --> 01:08:24,890 very carefully and we're not predisposed and never have 1549 01:08:24,890 --> 01:08:25,199 been 1550 01:08:25,199 --> 01:08:28,720 predisposed from what I can tell to take a lot of risks in 1551 01:08:28,720 --> 01:08:30,640 that area in fact calm 1552 01:08:30,640 --> 01:08:35,739 and smooth it has really been the the guideline I think our 1553 01:08:35,739 --> 01:08:36,720 Emo staff has had 1554 01:08:36,720 --> 01:08:40,460 all along so it's just that it was hard to communicate and 1555 01:08:40,460 --> 01:08:41,479 hard to bring forward 1556 01:08:41,479 --> 01:08:45,069 in the paradigm that we were living in in the past so now 1557 01:08:45,069 --> 01:08:46,479 we're we've got a new 1558 01:08:46,479 --> 01:08:50,229 world we're want to be much more transparent and open and 1559 01:08:50,229 --> 01:08:51,399 communicative 1560 01:08:51,399 --> 01:08:55,239 and we want to get your input again as we come back so 1561 01:08:55,239 --> 01:08:57,079 Philip thank you for 1562 01:08:57,079 --> 01:09:01,970 your for the work that you've done to put this together I I 1563 01:09:01,970 --> 01:09:03,159 think we dealt 1564 01:09:03,159 --> 01:09:08,449 with a lot of what we heard from from Deloitte we've got 1565 01:09:08,449 --> 01:09:09,960 the the next phase 1566 01:09:09,960 --> 01:09:13,550 that was just talked about in particularly that first item 1567 01:09:13,550 --> 01:09:14,119 which is 1568 01:09:14,119 --> 01:09:16,909 you know making sure we're all comfortable with what we're 1569 01:09:16,909 --> 01:09:17,399 doing the 1570 01:09:17,399 --> 01:09:20,449 risks that we're taking and what's our risk tolerance and 1571 01:09:20,449 --> 01:09:22,920 you heard my 1572 01:09:22,920 --> 01:09:25,449 perspective a little bit but I don't run that you know it's 1573 01:09:25,449 --> 01:09:26,399 not my call it's your 1574 01:09:26,399 --> 01:09:31,430 call as the governance body for this agency and and we'll 1575 01:09:31,430 --> 01:09:33,000 talk more about how 1576 01:09:33,000 --> 01:09:34,920 we're going to communicate with you going forward to make 1577 01:09:34,920 --> 01:09:35,359 sure you get 1578 01:09:35,359 --> 01:09:39,100 information that you're comfortable with what we're doing 1579 01:09:39,100 --> 01:09:40,279 so we're back 1580 01:09:40,279 --> 01:09:45,039 probably in about September for the phase two we'll clean 1581 01:09:45,039 --> 01:09:46,000 up everything and 1582 01:09:46,000 --> 01:09:48,760 in between the time now and then we'll come in for some 1583 01:09:48,760 --> 01:09:50,079 more feedback from you 1584 01:09:50,079 --> 01:09:54,659 so that's our risk management policy if we get your support 1585 01:09:54,659 --> 01:09:55,579 we intend to come 1586 01:09:55,579 --> 01:09:59,130 back at a future meeting for formal approval we'll have our 1587 01:09:59,130 --> 01:10:00,039 kickoff meeting 1588 01:10:00,039 --> 01:10:04,270 of the new risk management committee and there's a lot of 1589 01:10:04,270 --> 01:10:05,319 work for that 1590 01:10:05,319 --> 01:10:08,819 committee to do going forward to educate themselves I think 1591 01:10:08,819 --> 01:10:09,600 the chair of the 1592 01:10:09,600 --> 01:10:13,859 PUB sits on that committee and it has a vote so look 1593 01:10:13,859 --> 01:10:16,000 forward to working with the 1594 01:10:16,000 --> 01:10:20,039 chair and and him communicating communicating back to you 1595 01:10:20,039 --> 01:10:21,279 with what's 1596 01:10:21,279 --> 01:10:23,640 going on 1597 01:10:25,039 --> 01:10:29,090 having a little bit of experience with drafting policies 1598 01:10:29,090 --> 01:10:30,680 and procedures and 1599 01:10:30,680 --> 01:10:34,420 with compliance in several industries I've seen this happen 1600 01:10:34,420 --> 01:10:35,399 a bunch of times 1601 01:10:35,399 --> 01:10:40,300 where an organization will go through the procedures to do 1602 01:10:40,300 --> 01:10:41,760 all this to write 1603 01:10:41,760 --> 01:10:45,819 all this they bind them and then they go on a shelf what do 1604 01:10:45,819 --> 01:10:48,359 you have planned as 1605 01:10:48,359 --> 01:10:52,930 far as implementing training or at least some kind of 1606 01:10:52,930 --> 01:10:55,380 acknowledgement from your 1607 01:10:55,380 --> 01:10:58,720 staff that they've actually read these policies and 1608 01:10:58,720 --> 01:11:00,479 procedures and are going to 1609 01:11:00,479 --> 01:11:03,239 follow them good point yeah one of the exhibits of the 1610 01:11:03,239 --> 01:11:04,600 policy is a sign-off 1611 01:11:04,600 --> 01:11:07,750 sheet by employees that says we we've read and we will 1612 01:11:07,750 --> 01:11:09,000 follow all the employees 1613 01:11:09,000 --> 01:11:12,210 involved in the energy management procurement and sales but 1614 01:11:12,210 --> 01:11:13,199 it's a living 1615 01:11:13,199 --> 01:11:16,279 document it can't sit on the shelf there's too much at 1616 01:11:16,279 --> 01:11:17,199 stake here there's 1617 01:11:17,199 --> 01:11:22,130 too many dollars at risk the the energy management side is 1618 01:11:22,130 --> 01:11:23,520 too large and so 1619 01:11:23,520 --> 01:11:26,729 these conversations and the interaction between the front 1620 01:11:26,729 --> 01:11:28,000 middle and back office 1621 01:11:28,000 --> 01:11:31,739 is happening many times a day there's there's just a lot of 1622 01:11:31,739 --> 01:11:32,380 oversight and 1623 01:11:32,380 --> 01:11:36,210 input I spend a lot of time looking at what we're doing and 1624 01:11:36,210 --> 01:11:36,960 why we're doing it 1625 01:11:36,960 --> 01:11:40,859 and so and we'll be communicating everything back to the 1626 01:11:40,859 --> 01:11:42,119 risk management 1627 01:11:42,119 --> 01:11:45,090 committee and there's some general city folks that will be 1628 01:11:45,090 --> 01:11:45,760 sitting on that 1629 01:11:45,760 --> 01:11:49,590 committee also that you know it will be all of us will be 1630 01:11:49,590 --> 01:11:51,199 managing that function 1631 01:11:51,199 --> 01:11:54,760 so it's a real thing I agree with you a hundred percent you 1632 01:11:54,760 --> 01:11:56,079 do the long-term 1633 01:11:56,079 --> 01:11:59,380 strategic plan everybody you know says yes yes yes and it 1634 01:11:59,380 --> 01:12:00,399 sits over there this 1635 01:12:00,399 --> 01:12:05,319 disk that cannot happen here and have you all invested in a 1636 01:12:05,319 --> 01:12:06,520 document management 1637 01:12:06,520 --> 01:12:09,710 system that will allow you to update the living document 1638 01:12:09,710 --> 01:12:11,039 and then let everybody 1639 01:12:11,039 --> 01:12:14,260 know that there have been changes published and that they 1640 01:12:14,260 --> 01:12:15,239 're responsible 1641 01:12:15,239 --> 01:12:18,529 for understanding them and knowing them and adhering to 1642 01:12:18,529 --> 01:12:20,119 them yeah if we make any 1643 01:12:20,119 --> 01:12:23,170 changes to the procedures and the policy everybody will get 1644 01:12:23,170 --> 01:12:24,159 a copy of those and 1645 01:12:24,159 --> 01:12:26,489 we'll have input into it internally but everyone will get a 1646 01:12:26,489 --> 01:12:27,319 final copy of that 1647 01:12:27,319 --> 01:12:30,380 and we do have document management system at DME there's 1648 01:12:30,380 --> 01:12:31,479 centralized files 1649 01:12:31,479 --> 01:12:34,000 for everything that we have and this will be there 1650 01:12:34,000 --> 01:12:35,319 available for anybody that 1651 01:12:35,319 --> 01:12:39,310 has that need but it won't be like we said we're not int 1652 01:12:39,310 --> 01:12:41,680 ending it to be black 1653 01:12:41,680 --> 01:12:45,569 box for anymore for this group and we don't it's not black 1654 01:12:45,569 --> 01:12:46,720 box for our people 1655 01:12:46,720 --> 01:12:50,460 either it's totally it's a living and breathing and it has 1656 01:12:50,460 --> 01:12:51,239 we have to live and 1657 01:12:51,239 --> 01:12:54,159 breathe it every day it's just too much at stake and it's 1658 01:12:54,159 --> 01:12:56,439 too important and you 1659 01:12:56,439 --> 01:12:58,829 know my review of the of the front office so that's the 1660 01:12:58,829 --> 01:12:59,680 folks involved in 1661 01:12:59,680 --> 01:13:03,180 the around-the-clock operation to match the resources with 1662 01:13:03,180 --> 01:13:04,319 our loads I've been 1663 01:13:04,319 --> 01:13:07,819 very impressed the resumes for that group are as impressive 1664 01:13:07,819 --> 01:13:08,560 as Phillips 1665 01:13:08,560 --> 01:13:11,649 resumes and we have a lot of folks that have experience at 1666 01:13:11,649 --> 01:13:12,720 aircott and other 1667 01:13:12,720 --> 01:13:16,550 large utilities and have come here that have you know might 1668 01:13:16,550 --> 01:13:17,680 have taken them a 1669 01:13:17,680 --> 01:13:19,850 little bit but they've kind of learned the public power 1670 01:13:19,850 --> 01:13:21,199 community-owned ethic 1671 01:13:21,199 --> 01:13:25,510 and they're as they sort of talk the same language that you 1672 01:13:25,510 --> 01:13:26,680 know I'd like to 1673 01:13:26,680 --> 01:13:29,069 talk and I think you would be talking about what we should 1674 01:13:29,069 --> 01:13:29,720 be doing and why 1675 01:13:29,720 --> 01:13:32,319 we're doing it and how we're doing it and what risk we're 1676 01:13:32,319 --> 01:13:33,520 taking or not taking 1677 01:13:33,520 --> 01:13:40,970 so thank you thank you since the new risk management 1678 01:13:40,970 --> 01:13:41,840 committee is it you know 1679 01:13:41,840 --> 01:13:44,869 crucial part of all this I was wondering if you could 1680 01:13:44,869 --> 01:13:47,520 explain both for us and for 1681 01:13:47,520 --> 01:13:51,350 the public who sits on that committee you know how the the 1682 01:13:51,350 --> 01:13:52,279 constitution of that 1683 01:13:52,279 --> 01:13:56,020 committee was decided and by Constitution I mean how it was 1684 01:13:56,020 --> 01:13:56,520 how it's 1685 01:13:56,520 --> 01:14:01,600 constituted and how that was decided what term limits are 1686 01:14:01,600 --> 01:14:03,640 etc yeah Philip do 1687 01:14:03,640 --> 01:14:05,750 you have anything you want to share on the committee itself 1688 01:14:05,750 --> 01:14:06,600 I had actually had 1689 01:14:06,600 --> 01:14:09,720 a slide on that I was gonna I don't know that we brought it 1690 01:14:09,720 --> 01:14:11,560 okay 1691 01:14:17,640 --> 01:14:21,140 let me just bring up the document here I don't think I can 1692 01:14:21,140 --> 01:14:24,479 bring up the policy 1693 01:14:24,479 --> 01:14:28,750 itself it's in the yeah oh here does this say no no 1694 01:14:28,750 --> 01:14:31,039 actually don't have the 1695 01:14:31,039 --> 01:14:37,909 policy Philip it's in the agenda so it's yeah well I don't 1696 01:14:37,909 --> 01:14:40,520 well it's in the it's 1697 01:14:40,520 --> 01:14:40,520 in the staff report but it's not part of the presentation 1698 01:14:40,520 --> 01:14:44,760 so one of the things I 1699 01:14:44,760 --> 01:14:50,050 you know I will chair that committee so we'll have the 1700 01:14:50,050 --> 01:14:53,079 deputy city manager we'll 1701 01:14:53,079 --> 01:14:56,819 have the we'll have the finance director or designee we 1702 01:14:56,819 --> 01:14:58,840 have the pub chair or 1703 01:14:58,840 --> 01:15:06,829 designee and and we'll have the gentleman in the back there 1704 01:15:06,829 --> 01:15:07,399 from legal 1705 01:15:07,399 --> 01:15:10,369 that will sit on that committee so that's kind of what I'm 1706 01:15:10,369 --> 01:15:11,199 used to so it's 1707 01:15:11,199 --> 01:15:16,050 basically those five folks they'll have votes and the other 1708 01:15:16,050 --> 01:15:17,399 committees that I've 1709 01:15:17,399 --> 01:15:20,520 chaired in the past are very similar I represent the 1710 01:15:20,520 --> 01:15:21,880 department basically and 1711 01:15:21,880 --> 01:15:24,420 then we have folks from outside the department so there's 1712 01:15:24,420 --> 01:15:25,439 plenty of oversight 1713 01:15:25,439 --> 01:15:27,829 and checks and balances we'll have a lot of staff members 1714 01:15:27,829 --> 01:15:28,600 attending those 1715 01:15:28,600 --> 01:15:31,260 meetings and being involved and presenting and here's what 1716 01:15:31,260 --> 01:15:31,819 the market 1717 01:15:31,819 --> 01:15:34,069 looks like here's our forward projections of what's 1718 01:15:34,069 --> 01:15:34,760 happening here's 1719 01:15:34,760 --> 01:15:38,329 the resources we're bringing online here's you know here's 1720 01:15:38,329 --> 01:15:39,399 the economics of 1721 01:15:39,399 --> 01:15:42,800 certain types of deals and try to and getting authority to 1722 01:15:42,800 --> 01:15:43,300 do some 1723 01:15:43,300 --> 01:15:50,810 transactions so did that answer any of your question 1724 01:15:50,810 --> 01:15:51,520 possibly didn't answer 1725 01:15:51,520 --> 01:15:55,119 everything yeah and and so this was the site so the makeup 1726 01:15:55,119 --> 01:15:55,960 of the committee is 1727 01:15:55,960 --> 01:16:00,000 decided internally and right in DME and will will the 1728 01:16:00,000 --> 01:16:01,239 meetings of that committee 1729 01:16:01,239 --> 01:16:06,119 be posted and open to the public no of course not yeah I 1730 01:16:06,119 --> 01:16:07,960 figured no because 1731 01:16:07,960 --> 01:16:10,350 setting you up for just to kind of explain you know also 1732 01:16:10,350 --> 01:16:11,079 for the public 1733 01:16:11,079 --> 01:16:13,789 I'm so honest that's I had to give you that no no no no no 1734 01:16:13,789 --> 01:16:14,960 no our intention is 1735 01:16:14,960 --> 01:16:17,489 okay I following the meetings something we're not doing 1736 01:16:17,489 --> 01:16:18,399 today we're gonna put 1737 01:16:18,399 --> 01:16:21,760 minutes together and you know I'm not sure how deep or how 1738 01:16:21,760 --> 01:16:22,920 much and we'll make 1739 01:16:22,920 --> 01:16:25,310 those available to the utility board in the council each 1740 01:16:25,310 --> 01:16:26,119 quarter you know 1741 01:16:26,119 --> 01:16:29,180 minimum quarterly meetings possibly meetings quite a bit 1742 01:16:29,180 --> 01:16:29,960 ahead of that I 1743 01:16:29,960 --> 01:16:32,710 actually have quite a few things in my mind lined up that I 1744 01:16:32,710 --> 01:16:33,560 want to get some 1745 01:16:33,560 --> 01:16:36,600 direction and input from that committee on so we'll be 1746 01:16:36,600 --> 01:16:37,920 going through a lot of 1747 01:16:37,920 --> 01:16:45,359 learning together and and providing the direction I think 1748 01:16:45,359 --> 01:16:45,960 the department needs 1749 01:16:45,960 --> 01:16:50,010 going forward so thank you for setting me up for that but 1750 01:16:50,010 --> 01:16:51,720 so they so the the 1751 01:16:51,720 --> 01:16:54,800 decisions of that committee will be you know presented you 1752 01:16:54,800 --> 01:16:55,760 know not only the 1753 01:16:55,760 --> 01:16:59,920 minutes but at some point yes but it's not an open 1754 01:16:59,920 --> 01:17:01,600 committee though yes under I 1755 01:17:01,600 --> 01:17:04,100 think that would not be a smart thing for us to do we're 1756 01:17:04,100 --> 01:17:05,119 still involved in the 1757 01:17:05,119 --> 01:17:08,380 committee you know everybody else we deal with there pretty 1758 01:17:08,380 --> 01:17:09,359 much our private 1759 01:17:09,359 --> 01:17:13,109 sector they have black boxes they're confidential we don't 1760 01:17:13,109 --> 01:17:13,880 know we don't know 1761 01:17:13,880 --> 01:17:16,890 what cards they have or what they're thinking or so you 1762 01:17:16,890 --> 01:17:18,159 know we do so we have 1763 01:17:18,159 --> 01:17:20,590 to be a little bit careful but some of the things there 1764 01:17:20,590 --> 01:17:21,520 will be reportings kind 1765 01:17:21,520 --> 01:17:25,840 of semi-annually to PUB and council providing quarterly 1766 01:17:25,840 --> 01:17:27,000 after the minutes 1767 01:17:27,000 --> 01:17:29,699 we'll be providing information about those but you know I 1768 01:17:29,699 --> 01:17:31,359 don't I don't know 1769 01:17:31,359 --> 01:17:33,319 that it'll be anything there that we would be that we 1770 01:17:33,319 --> 01:17:34,399 review as confidential 1771 01:17:34,399 --> 01:17:38,300 or would adverse us from a power marketing standpoint we 1772 01:17:38,300 --> 01:17:39,000 did make the 1773 01:17:39,000 --> 01:17:43,510 decision internally I think we had input from ERC I think 1774 01:17:43,510 --> 01:17:44,479 we had some input 1775 01:17:44,479 --> 01:17:47,909 possibly from Deloitte about the makeup it's totally up to 1776 01:17:47,909 --> 01:17:48,979 the PUB if you look 1777 01:17:48,979 --> 01:17:51,149 at that makeup that we have and you think that's not 1778 01:17:51,149 --> 01:17:52,720 appropriate that's what 1779 01:17:52,720 --> 01:17:55,109 these work sessions are for and you if you don't do it 1780 01:17:55,109 --> 01:17:56,079 today you can do it in 1781 01:17:56,079 --> 01:17:58,810 between like I say we'll be coming back at some point with 1782 01:17:58,810 --> 01:17:59,520 the document for 1783 01:17:59,520 --> 01:18:04,770 formal approval and I'd be open to hearing any thoughts now 1784 01:18:04,770 --> 01:18:06,239 or later from 1785 01:18:06,239 --> 01:18:09,979 the PUB on the committee makeup I see the makeup of the 1786 01:18:09,979 --> 01:18:11,039 committee is very 1787 01:18:11,039 --> 01:18:15,279 appropriate it's got all the right people at the table so 1788 01:18:15,279 --> 01:18:15,800 thank you very 1789 01:18:15,800 --> 01:18:19,539 much I'm glad to see it I'm glad to see how this is all 1790 01:18:19,539 --> 01:18:20,640 being put together and 1791 01:18:20,640 --> 01:18:24,050 that's being shared because I don't think any of this was 1792 01:18:24,050 --> 01:18:25,479 in place prior to 1793 01:18:25,479 --> 01:18:30,439 is that correct right we there was a different makeup there 1794 01:18:30,439 --> 01:18:30,920 were a couple of 1795 01:18:30,920 --> 01:18:35,430 different committees they were more internal than external 1796 01:18:35,430 --> 01:18:36,399 and this is a 1797 01:18:36,399 --> 01:18:41,079 whole new paradigm for us and I'm looking forward to it I 1798 01:18:41,079 --> 01:18:41,960 like to say we 1799 01:18:41,960 --> 01:18:44,699 want to be as transparent and open as possible and not 1800 01:18:44,699 --> 01:18:46,279 impacting our cost 1801 01:18:46,279 --> 01:18:49,500 benefits and that kind of thing Brian I just want to make 1802 01:18:49,500 --> 01:18:50,439 one other point I 1803 01:18:50,439 --> 01:18:52,909 think George and his staff done a good job taking a look at 1804 01:18:52,909 --> 01:18:53,720 this from a fresh 1805 01:18:53,720 --> 01:18:56,770 perspective with the new environment and then bringing 1806 01:18:56,770 --> 01:18:58,000 something back and it 1807 01:18:58,000 --> 01:19:00,159 really dawned on us too as we were going through this this 1808 01:19:00,159 --> 01:19:01,760 was approved in 2014 1809 01:19:01,760 --> 01:19:05,159 right I think it was originally and it wasn't brought back 1810 01:19:05,159 --> 01:19:06,119 on an annual basis 1811 01:19:06,119 --> 01:19:09,090 back to council or PUB so we want to have at least an 1812 01:19:09,090 --> 01:19:10,279 annual process to bring 1813 01:19:10,279 --> 01:19:13,090 it back and say here's where the policy is there any tweaks 1814 01:19:13,090 --> 01:19:13,960 we need to make to 1815 01:19:13,960 --> 01:19:16,439 it how's it working for you guys how's it working for us is 1816 01:19:16,439 --> 01:19:17,199 there anything that 1817 01:19:17,199 --> 01:19:20,189 we need to change and constantly keep that in front of both 1818 01:19:20,189 --> 01:19:21,159 the board and the 1819 01:19:21,159 --> 01:19:24,229 council because board members change council members change 1820 01:19:24,229 --> 01:19:25,000 staff changes 1821 01:19:25,000 --> 01:19:27,279 always really have this at the forefront so we can make 1822 01:19:27,279 --> 01:19:28,479 good decisions but I 1823 01:19:28,479 --> 01:19:30,319 think they've done a good job of taking a look at all that 1824 01:19:30,319 --> 01:19:31,079 and we'll bring this 1825 01:19:31,079 --> 01:19:34,050 back to you on a regular basis so it's you know unlocking 1826 01:19:34,050 --> 01:19:35,079 those mysteries of 1827 01:19:35,079 --> 01:19:37,680 what's going on really have a good transparent conversation 1828 01:19:37,680 --> 01:19:38,319 about what's 1829 01:19:38,319 --> 01:19:41,319 happening yeah and there actually has been a lot of updates 1830 01:19:41,319 --> 01:19:42,079 Philip had a 1831 01:19:42,079 --> 01:19:44,800 redline version for you at one time attached to the report 1832 01:19:44,800 --> 01:19:45,560 and it was just 1833 01:19:45,560 --> 01:19:49,649 there was so much red ink I just that didn't help so we we 1834 01:19:49,649 --> 01:19:50,800 didn't really 1835 01:19:50,800 --> 01:19:53,050 provide the red line because there is so much so many 1836 01:19:53,050 --> 01:19:54,279 changes in there but again 1837 01:19:54,279 --> 01:19:58,069 we tried to make it understandable and and for for lay 1838 01:19:58,069 --> 01:19:59,319 people not that you're 1839 01:19:59,319 --> 01:20:01,260 laypeople but in general for the public or others that 1840 01:20:01,260 --> 01:20:02,279 might want to look at it 1841 01:20:02,279 --> 01:20:06,520 and for our own staff that's it's a roadmap for us to 1842 01:20:06,520 --> 01:20:09,920 manage our risk well 1843 01:20:09,920 --> 01:20:14,899 we can we can still consider ourselves as like people that 1844 01:20:14,899 --> 01:20:18,439 's not but no you 1845 01:20:18,439 --> 01:20:21,409 know this is this is I like the structure because I think 1846 01:20:21,409 --> 01:20:22,039 it's gonna 1847 01:20:22,039 --> 01:20:27,119 provide excuse me better opportunity for communication to 1848 01:20:27,119 --> 01:20:28,359 the PAB and the council 1849 01:20:28,359 --> 01:20:32,319 and like you say there are certain competitive matters that 1850 01:20:32,319 --> 01:20:33,319 you don't want 1851 01:20:33,319 --> 01:20:40,770 you can't discuss but at least we can we can it's good to 1852 01:20:40,770 --> 01:20:42,039 know that everything 1853 01:20:42,039 --> 01:20:49,079 that's been done has been done correctly and the high 1854 01:20:49,079 --> 01:20:51,880 priority part of this is 1855 01:20:51,880 --> 01:20:56,699 that the governance and making sure that everybody knows 1856 01:20:56,699 --> 01:20:58,079 what's going on 1857 01:20:58,079 --> 01:21:04,960 everybody's informed and so I think again I'll echo Brian's 1858 01:21:04,960 --> 01:21:07,159 comments that 1859 01:21:07,159 --> 01:21:14,310 this is this is good I like them I like this thank you 1860 01:21:14,310 --> 01:21:15,039 thank you very much okay 1861 01:21:15,039 --> 01:21:27,800 anything else okay we have next part of the meeting we have 1862 01:21:27,800 --> 01:21:28,600 a consent agenda 1863 01:21:28,600 --> 01:21:36,050 with five items ABCD and E is there any member of the board 1864 01:21:36,050 --> 01:21:38,159 who would like to 1865 01:21:38,159 --> 01:21:43,329 pull any of these items for individual consideration yes I 1866 01:21:43,329 --> 01:21:44,199 would like to pull 1867 01:21:44,199 --> 01:21:53,399 D just because I'd like to hear more about that okay item D 1868 01:21:53,399 --> 01:21:54,840 it's been pulled 1869 01:21:54,840 --> 01:22:14,960 any other items D okay then item is there a motion then on 1870 01:22:14,960 --> 01:22:15,479 the consent 1871 01:22:15,479 --> 01:22:23,970 agenda for items ABC and E so moved we have a motion to 1872 01:22:23,970 --> 01:22:25,960 approve those four 1873 01:22:25,960 --> 01:22:30,840 items is there a second second second any further 1874 01:22:30,840 --> 01:22:33,319 discussion all in favor say 1875 01:22:33,319 --> 01:22:39,640 aye aye any opposed same sign okay item D which is consider 1876 01:22:39,640 --> 01:22:41,119 recommending 1877 01:22:41,119 --> 01:22:44,119 adoption of an ordinance authorizing the city manager to 1878 01:22:44,119 --> 01:22:45,359 surrender to Bloomfield 1879 01:22:45,359 --> 01:22:51,199 homes LP a certain irrevocable standby letter credit dated 1880 01:22:51,199 --> 01:22:53,119 November 12 2013 1881 01:22:53,119 --> 01:22:58,279 drawn on Texas Capital Bank in the amount of 176 thousand 1882 01:22:58,279 --> 01:22:59,359 one hundred forty 1883 01:22:59,359 --> 01:23:03,479 three dollars and ninety three cents in which Bloomfield 1884 01:23:03,479 --> 01:23:05,520 homes LP is the 1885 01:23:05,520 --> 01:23:10,090 applicant and the city of Denton is a beneficiary and 1886 01:23:10,090 --> 01:23:11,779 further partial 1887 01:23:11,779 --> 01:23:15,529 releasing Bloomfield homes from financial obligations 1888 01:23:15,529 --> 01:23:16,560 concerning the 1889 01:23:16,560 --> 01:23:20,920 construction of water and wastewater lines included in that 1890 01:23:20,920 --> 01:23:22,079 certain letter 1891 01:23:22,079 --> 01:23:26,579 agreement dated December 29 2000 by in between the city of 1892 01:23:26,579 --> 01:23:27,680 Denton and when 1893 01:23:27,680 --> 01:23:31,920 Jackson Lakes Development LP as a successor in interest in 1894 01:23:31,920 --> 01:23:32,760 providing 1895 01:23:32,760 --> 01:23:36,640 severability and an effective date 1896 01:23:38,279 --> 01:23:41,250 yeah I'm not sure whether you want me to give a 1897 01:23:41,250 --> 01:23:43,600 presentation or answer questions 1898 01:23:43,600 --> 01:23:53,189 so I'll leave that up to you okay quite some time ago 1899 01:23:53,189 --> 01:23:54,880 probably about 16 years 1900 01:23:54,880 --> 01:24:01,600 ago there was a freshwater supply district created the far 1901 01:24:01,600 --> 01:24:03,079 southwest side 1902 01:24:03,079 --> 01:24:10,039 of the city of Denton it straddled the Denton ETJ strip 1903 01:24:10,039 --> 01:24:11,119 annex that kind of 1904 01:24:11,119 --> 01:24:15,640 defined our boundary with Argyle and straddled in Dargile 1905 01:24:15,640 --> 01:24:17,199 they had used a 1906 01:24:17,199 --> 01:24:24,079 provision in state law known as annexation so it was an 1907 01:24:24,079 --> 01:24:26,319 annexed freshwater 1908 01:24:26,319 --> 01:24:31,420 supply district city of Denton never provided the approval 1909 01:24:31,420 --> 01:24:32,800 for that so they 1910 01:24:32,800 --> 01:24:37,960 filed lawsuit against the freshwater supply district to 1911 01:24:37,960 --> 01:24:39,920 challenge that that 1912 01:24:39,920 --> 01:24:43,220 resulted in a settlement agreement in that settlement 1913 01:24:43,220 --> 01:24:44,560 agreement there were 1914 01:24:44,560 --> 01:24:48,989 provisions made for zoning and there were provisions made 1915 01:24:48,989 --> 01:24:50,600 for providing water 1916 01:24:50,600 --> 01:24:54,100 and sewer extensions to serve that development there were 1917 01:24:54,100 --> 01:24:55,279 certain financial 1918 01:24:55,279 --> 01:25:00,189 obligations that the development had to make payment and in 1919 01:25:00,189 --> 01:25:02,439 that there were some 1920 01:25:02,439 --> 01:25:07,710 surcharges to the impact fees that created income to help 1921 01:25:07,710 --> 01:25:08,680 pay for those 1922 01:25:08,680 --> 01:25:13,520 water and sewer lines or proportion of them during that 1923 01:25:13,520 --> 01:25:15,680 time they had to file a 1924 01:25:15,680 --> 01:25:20,220 letter of credit which was their financial guarantee that 1925 01:25:20,220 --> 01:25:20,800 they'd make 1926 01:25:20,800 --> 01:25:26,680 payment each year during the course of the project some of 1927 01:25:26,680 --> 01:25:27,600 the momentum on it 1928 01:25:27,600 --> 01:25:32,109 stalled for a variety of reasons and so then they sold the 1929 01:25:32,109 --> 01:25:33,640 property when they 1930 01:25:33,640 --> 01:25:37,699 sold the property they sold it to Bloomberg Homes as one of 1931 01:25:37,699 --> 01:25:38,640 the larger 1932 01:25:38,640 --> 01:25:45,000 purchasers the city then required surrendered the letter of 1933 01:25:45,000 --> 01:25:46,520 credit from 1934 01:25:46,520 --> 01:25:51,670 the seller and required it of the buyer that buyer then you 1935 01:25:51,670 --> 01:25:53,359 know fulfilled those 1936 01:25:53,359 --> 01:25:58,670 obligations through the remainder of the bond period once 1937 01:25:58,670 --> 01:25:59,920 the bond period was 1938 01:25:59,920 --> 01:26:04,399 done the city no longer needed to maintain the letter of 1939 01:26:04,399 --> 01:26:06,439 credit since the 1940 01:26:06,439 --> 01:26:10,750 letter of credit was transferred to the new owner by 1941 01:26:10,750 --> 01:26:12,800 ordinance legal wanted us 1942 01:26:12,800 --> 01:26:18,369 to go through a ordinance to release it the original terms 1943 01:26:18,369 --> 01:26:20,279 of the agreement also 1944 01:26:20,279 --> 01:26:25,460 called for a refunding of the bond selling costs which is 1945 01:26:25,460 --> 01:26:26,760 usually your 1946 01:26:26,760 --> 01:26:32,270 payment guarantee through the course of the bonds which was 1947 01:26:32,270 --> 01:26:33,920 agreed to in that 1948 01:26:33,920 --> 01:26:37,920 letter agreement from 2000 plus the interest costs so we'll 1949 01:26:37,920 --> 01:26:39,119 also be 1950 01:26:39,119 --> 01:26:44,689 refunding that as well but we do need to make sure that we 1951 01:26:44,689 --> 01:26:45,880 give that to the right 1952 01:26:45,880 --> 01:26:51,640 parties or party rather because the legal obligations and 1953 01:26:51,640 --> 01:26:53,159 the benefits ran 1954 01:26:53,159 --> 01:27:01,399 with the properties that that help so it's it's the the 1955 01:27:01,399 --> 01:27:02,920 closure of a pretty 1956 01:27:02,920 --> 01:27:09,199 long effort that we've had to contend with as a result of 1957 01:27:09,199 --> 01:27:10,960 that this is the 1958 01:27:10,960 --> 01:27:16,720 this is the closure of the financial responsibilities yes 1959 01:27:16,720 --> 01:27:18,159 and refunding those 1960 01:27:18,159 --> 01:27:25,000 pieces we still have probably about 30% of the development 1961 01:27:25,000 --> 01:27:27,439 still remains under 1962 01:27:27,439 --> 01:27:32,010 the new owners but they seem to have some new momentum and 1963 01:27:32,010 --> 01:27:33,359 we look for that 1964 01:27:33,359 --> 01:27:38,239 project to continue okay thank you so much and also I'm 1965 01:27:38,239 --> 01:27:39,159 impressed that you 1966 01:27:39,159 --> 01:27:41,800 seem to do that without no without notes I guess you you 1967 01:27:41,800 --> 01:27:44,239 looked at so I was I 1968 01:27:44,239 --> 01:27:48,760 didn't negotiate the arrangement but I knew the parties 1969 01:27:48,760 --> 01:27:51,840 yeah and I was probably 1970 01:27:51,840 --> 01:27:55,880 responsible for quite some time implementing it so yeah 1971 01:27:55,880 --> 01:27:56,840 yeah well thanks 1972 01:27:56,840 --> 01:28:01,220 I just you know it was it was it was so complicated and so 1973 01:28:01,220 --> 01:28:02,760 but but what you said 1974 01:28:02,760 --> 01:28:05,520 confirmed for me you know my own understanding of it and 1975 01:28:05,520 --> 01:28:06,319 you also filled 1976 01:28:06,319 --> 01:28:10,060 in some of the history so that that was primarily why I 1977 01:28:10,060 --> 01:28:11,439 asked I just want to 1978 01:28:11,439 --> 01:28:15,699 make sure I understood exactly what that was what what what 1979 01:28:15,699 --> 01:28:17,460 had happened and to 1980 01:28:17,460 --> 01:28:21,569 just confirm that this is the final chapter of that that 1981 01:28:21,569 --> 01:28:23,600 saga so thank you 1982 01:28:23,600 --> 01:28:29,529 any other questions questions from Tim no thank you thank 1983 01:28:29,529 --> 01:28:31,479 you okay do we have a 1984 01:28:31,479 --> 01:28:36,720 motion on item D I move have a motion to approve is there a 1985 01:28:36,720 --> 01:28:38,840 second and a second 1986 01:28:38,840 --> 01:28:45,640 from Brendan any discussion all in favor say aye aye any 1987 01:28:45,640 --> 01:28:48,199 opposed same sign motion 1988 01:28:48,199 --> 01:28:58,199 carries okay next item we have is the public utility board 1989 01:28:58,199 --> 01:28:59,960 meeting minutes for 1990 01:28:59,960 --> 01:29:06,210 March 26 2018 these have been distributed in advance for 1991 01:29:06,210 --> 01:29:06,439 their any 1992 01:29:06,439 --> 01:29:14,119 questions changes comments to those hearing none is there a 1993 01:29:14,119 --> 01:29:15,279 motion to approve 1994 01:29:15,279 --> 01:29:23,560 those is presented then to approve okay second second and a 1995 01:29:23,560 --> 01:29:26,159 second discussion 1996 01:29:26,159 --> 01:29:32,680 all in favor say aye any opposed same sign minutes are 1997 01:29:32,680 --> 01:29:34,439 approved next we have 1998 01:29:34,439 --> 01:29:38,680 the ACM update good morning mr. chairman and members of the 1999 01:29:38,680 --> 01:29:40,880 board in your in your 2000 01:29:40,880 --> 01:29:44,300 packet you'll have your future agenda items for the for 2001 01:29:44,300 --> 01:29:45,760 upcoming pub meetings 2002 01:29:45,760 --> 01:29:50,859 excuse me if you see at your second meeting in April you'll 2003 01:29:50,859 --> 01:29:51,399 have some power 2004 01:29:51,399 --> 01:29:54,970 supply items and then as we move forward into latter part 2005 01:29:54,970 --> 01:29:56,279 early part of May you 2006 01:29:56,279 --> 01:29:59,289 will be starting the some of the budget conversations on C 2007 01:29:59,289 --> 01:30:00,239 IP with water and 2008 01:30:00,239 --> 01:30:04,029 wastewater so we'll be getting into the budget season so a 2009 01:30:04,029 --> 01:30:04,640 lot of more 2010 01:30:04,640 --> 01:30:08,199 conversations about about the operating budgets and capital 2011 01:30:08,199 --> 01:30:09,359 project budgets of 2012 01:30:09,359 --> 01:30:14,060 those other various utilities so stay tuned more to come so 2013 01:30:14,060 --> 01:30:15,399 that's all I have 2014 01:30:15,399 --> 01:30:18,369 on the future agenda design future agenda items on the new 2015 01:30:18,369 --> 01:30:19,239 business matrix 2016 01:30:19,239 --> 01:30:22,159 some of the things that were listed still for outstanding 2017 01:30:22,159 --> 01:30:22,960 on outstanding 2018 01:30:22,960 --> 01:30:25,960 issues are to be discussed during the budget process I did 2019 01:30:25,960 --> 01:30:27,279 hear over the course 2020 01:30:27,279 --> 01:30:30,800 of today's meeting some additional information at the board 2021 01:30:30,800 --> 01:30:31,520 requested on the 2022 01:30:31,520 --> 01:30:34,600 landfill entrance the road the cost and some of the 2023 01:30:34,600 --> 01:30:35,479 decision factors that were 2024 01:30:35,479 --> 01:30:40,439 made there and also a work session on the DME capital 2025 01:30:40,439 --> 01:30:42,760 improvement programs so 2026 01:30:42,760 --> 01:30:48,329 and the FERC report and actually can can can I can we 2027 01:30:48,329 --> 01:30:52,399 expand that and and because 2028 01:30:52,399 --> 01:30:59,000 what we're seeing changes in solid waste as well I don't 2029 01:30:59,000 --> 01:31:00,359 know if there's projects 2030 01:31:00,359 --> 01:31:05,090 there that have been delayed or changed or modified 2031 01:31:05,090 --> 01:31:07,840 significantly I don't know 2032 01:31:07,840 --> 01:31:11,810 that wastewater or water has I don't think we've seen that 2033 01:31:11,810 --> 01:31:13,039 kind of stuff come 2034 01:31:13,039 --> 01:31:18,479 at us and some time ago we were presented with and I think 2035 01:31:18,479 --> 01:31:19,319 it was you 2036 01:31:19,319 --> 01:31:23,090 that gave it to us it showed all the projects and there was 2037 01:31:23,090 --> 01:31:25,279 a timeline had 2038 01:31:25,279 --> 01:31:29,279 some colored lines showing us maybe the project inception 2039 01:31:29,279 --> 01:31:30,800 and maybe how far along 2040 01:31:30,800 --> 01:31:34,970 they were and if we could get if we could get something 2041 01:31:34,970 --> 01:31:35,720 like that that shows 2042 01:31:35,720 --> 01:31:39,810 us you know when when we finalize these projects when we 2043 01:31:39,810 --> 01:31:41,159 thought they would be 2044 01:31:41,159 --> 01:31:45,510 complete where we what percentage completion we are now and 2045 01:31:45,510 --> 01:31:46,359 when we think 2046 01:31:46,359 --> 01:31:48,960 we're good they're actually going to be complete and the 2047 01:31:48,960 --> 01:31:50,920 dollar amount associated 2048 01:31:50,920 --> 01:31:53,569 with what we're gonna have to pay because it took us so 2049 01:31:53,569 --> 01:31:54,319 long to complete 2050 01:31:54,319 --> 01:31:58,720 to get them going I think that information will help me a 2051 01:31:58,720 --> 01:31:59,920 lot is that 2052 01:31:59,920 --> 01:32:05,239 strictly to DME projects or is that everything well I mean 2053 01:32:05,239 --> 01:32:06,840 the things that I've 2054 01:32:06,840 --> 01:32:09,810 been uncomfortable with have been DME projects and solid 2055 01:32:09,810 --> 01:32:13,880 waste stuff so and 2056 01:32:13,880 --> 01:32:17,520 more information which is you know 2057 01:32:20,840 --> 01:32:31,359 all right concluding items I think we just covered but are 2058 01:32:31,359 --> 01:32:31,880 there any other 2059 01:32:31,880 --> 01:32:37,510 yes yeah yeah I would I would add to that so I second that 2060 01:32:37,510 --> 01:32:38,159 and I would like 2061 01:32:38,159 --> 01:32:43,340 to see you know even though we've we've seen mostly no DME 2062 01:32:43,340 --> 01:32:45,640 and solid waste I'd 2063 01:32:45,640 --> 01:32:50,449 like to know from water you know a presentation at some 2064 01:32:50,449 --> 01:32:51,520 point and maybe this 2065 01:32:51,520 --> 01:32:54,560 is just already going to be part of the budget discussion 2066 01:32:54,560 --> 01:32:55,720 but about what their 2067 01:32:55,720 --> 01:32:59,859 needs are because I know that there are needs in water you 2068 01:32:59,859 --> 01:33:01,399 know to keep up with 2069 01:33:01,399 --> 01:33:08,659 the growth and I want to know what what what those needs 2070 01:33:08,659 --> 01:33:10,640 are and what the what 2071 01:33:10,640 --> 01:33:16,750 the timeline is how pressing those needs are okay can we 2072 01:33:16,750 --> 01:33:17,920 that'll be will that be 2073 01:33:17,920 --> 01:33:25,000 part of the CIP discussion on on the in the budget process 2074 01:33:25,000 --> 01:33:27,920 so we'll look at five 2075 01:33:27,920 --> 01:33:35,970 years at least five five years great good and I had there 2076 01:33:35,970 --> 01:33:37,119 was one other thing 2077 01:33:37,119 --> 01:33:41,250 that I wanted to ask I guess for a staff report on a staff 2078 01:33:41,250 --> 01:33:42,840 report should probably 2079 01:33:42,840 --> 01:33:48,000 suffice and this was a question that I had it was has been 2080 01:33:48,000 --> 01:33:49,119 partly answered I 2081 01:33:49,119 --> 01:33:53,560 mean it says about about sponsorship procedure and there is 2082 01:33:53,560 --> 01:33:54,399 recently so 2083 01:33:54,399 --> 01:34:00,649 there's a so DME has a host table at a upcoming charity g 2084 01:34:00,649 --> 01:34:04,359 ala and and I just 2085 01:34:04,359 --> 01:34:06,970 found this out last week and they're gonna be some council 2086 01:34:06,970 --> 01:34:07,920 people going and 2087 01:34:07,920 --> 01:34:14,899 and PUB was invited to attend and I had I had requested I 2088 01:34:14,899 --> 01:34:16,199 had asked if I could 2089 01:34:16,199 --> 01:34:19,539 um pay my own way and I just found out I was able to pay my 2090 01:34:19,539 --> 01:34:21,520 own way so that it 2091 01:34:21,520 --> 01:34:25,260 so that it wouldn't be coming you know at least from my 2092 01:34:25,260 --> 01:34:26,640 part from from public 2093 01:34:26,640 --> 01:34:31,430 money um but I wanted to know because it mentioned in the 2094 01:34:31,430 --> 01:34:32,399 email that it was a 2095 01:34:32,399 --> 01:34:38,060 decision that came from that the the call to to sponsor 2096 01:34:38,060 --> 01:34:40,039 that that table at 2097 01:34:40,039 --> 01:34:44,289 the charity gala came from the city manager's office and so 2098 01:34:44,289 --> 01:34:45,680 I wanted to know 2099 01:34:45,680 --> 01:34:52,260 you know what the what the procedure was if if that ever 2100 01:34:52,260 --> 01:34:53,640 went to you know maybe 2101 01:34:53,640 --> 01:34:56,239 that's something that went to PUB or council in the past 2102 01:34:56,239 --> 01:34:57,279 before I got on board 2103 01:34:57,279 --> 01:35:05,199 PUB and and then whether that is coming from from rate 2104 01:35:05,199 --> 01:35:08,039 payers funds from from 2105 01:35:08,039 --> 01:35:11,960 DME funds or if it's coming from taxpayer money and you 2106 01:35:11,960 --> 01:35:13,119 know in some other 2107 01:35:13,119 --> 01:35:17,689 capacity so I'm really just curious you know kind of what 2108 01:35:17,689 --> 01:35:19,619 how that decision came 2109 01:35:19,619 --> 01:35:25,760 to be made and then what the protocol is for that we'll be 2110 01:35:25,760 --> 01:35:26,880 glad to get you the 2111 01:35:26,880 --> 01:35:30,079 staff report on that that's consistent with the sponsorship 2112 01:35:30,079 --> 01:35:31,399 policy that we had 2113 01:35:31,399 --> 01:35:34,369 brought forward to the PUB and the City Council a couple of 2114 01:35:34,369 --> 01:35:35,520 months ago I did 2115 01:35:35,520 --> 01:35:38,300 want also mentioned to you that the council's asked us to 2116 01:35:38,300 --> 01:35:39,180 have a different 2117 01:35:39,180 --> 01:35:41,979 process or consider a different process for sponsorships 2118 01:35:41,979 --> 01:35:43,039 and approving those 2119 01:35:43,039 --> 01:35:46,010 looking at using the hotel occupancy tax committee which is 2120 01:35:46,010 --> 01:35:46,680 made up of three 2121 01:35:46,680 --> 01:35:49,340 council members to bring those requests through and then 2122 01:35:49,340 --> 01:35:50,439 make recommendations 2123 01:35:50,439 --> 01:35:53,090 back to the council so more to come on that but we'll be 2124 01:35:53,090 --> 01:35:54,039 happy to get you a 2125 01:35:54,039 --> 01:36:01,130 more detailed report on it is that part of that policy I 2126 01:36:01,130 --> 01:36:02,560 believe was was it a 2127 01:36:02,560 --> 01:36:05,840 quarterly report we were gonna get that's right on all the 2128 01:36:05,840 --> 01:36:06,479 sponsorships 2129 01:36:06,479 --> 01:36:09,449 that's right we'll do that and then of course during the 2130 01:36:09,449 --> 01:36:10,640 budget process all of 2131 01:36:10,640 --> 01:36:17,600 the all of those are listed in the in the budget process 2132 01:36:17,600 --> 01:36:19,359 when we do that okay 2133 01:36:19,359 --> 01:36:28,890 very good all right any any other concluding items hearing 2134 01:36:28,890 --> 01:36:29,399 none is there a 2135 01:36:29,399 --> 01:36:35,760 motion to adjourn motion adjourned and a second second from 2136 01:36:35,760 --> 01:36:37,159 Lillia all in favor 2137 01:36:37,159 --> 01:36:44,359 say aye aye any opposed thank you