WEBVTT 00:00:00.000 --> 00:00:08.000 Okay it is nine o'clock on February 17th we have a quorum so I'll call to order 00:00:08.000 --> 00:00:14.560 the Public Utilities Board for the City of Denton to order. The first item is 00:00:14.560 --> 00:00:18.880 addressing anyone wanting to address the Public Utilities Board I see no one is 00:00:18.880 --> 00:00:24.120 here. Is anybody on the phone? No ma'am there are no callers this morning. Okay 00:00:24.120 --> 00:00:29.040 thank you. Then we'll go into the regular meeting. First item is the consent 00:00:29.040 --> 00:00:36.520 agenda. Does any board member wish to pull items an item from A through C? Okay 00:00:36.520 --> 00:00:41.560 I see none. Do we have a motion to approve items A through C? So moved. Thank you 00:00:41.560 --> 00:00:49.680 Devin. In a second Mr. Beck all in favor say aye. Aye. Opposed? That carries. Move 00:00:49.680 --> 00:00:53.600 into items for individual consideration. Do we have a motion to approve the 00:00:53.600 --> 00:01:03.560 December 13th 2021 minutes? Okay Mr. Cheek moved and Barbara Russell seconded. 00:01:03.560 --> 00:01:09.720 All in favor say aye. Aye. Okay then we'll move into receive nominations and hold 00:01:09.720 --> 00:01:14.640 the election for chair vice chair and secretary and Mr. Nolte gave me the 00:01:14.640 --> 00:01:22.040 rules here so I'll make a motion to open nominations and I need a second. All in 00:01:22.040 --> 00:01:30.280 favor for opening up nominations? Say aye. Aye. All right. Slate about of 00:01:30.280 --> 00:01:41.480 officers. Unless there are any other nominations I move that we keep the current slate going 00:01:41.480 --> 00:01:46.680 forward for Susan as chair. I would stay as vice chair and Barbara Russell will be 00:01:46.680 --> 00:01:52.960 secretary. Are there any other nominations? See we need to approve that 00:01:52.960 --> 00:01:58.880 one don't we? Yes. So that was your motion. I'll second it. Okay then second it. All in 00:01:58.880 --> 00:02:05.040 favor say aye. Aye. This is just a comment on this I had a discussion on the 00:02:05.040 --> 00:02:08.280 agenda with staff last week and apparently we're supposed to do this 00:02:08.280 --> 00:02:15.340 every year we haven't been. Right. I think we did it two years ago. I think so. 00:02:15.340 --> 00:02:20.760 That might have been it. Karen went off. Yeah. All right the next item is to 00:02:20.760 --> 00:02:25.000 receive a report hold a discussion and give staff direction regarding the 2022 00:02:25.000 --> 00:02:33.080 schedule. Terry you have a couple of comments. Good morning. So under the 00:02:33.080 --> 00:02:42.960 charter for the PUB each year the PUB should identify a schedule for meetings 00:02:42.960 --> 00:02:50.480 for the year and you'll need a motion Madam Chairman for the the for the 00:02:50.480 --> 00:02:54.920 meetings for this year. Thank you. Okay I'd like to make a motion. I move that 00:02:54.920 --> 00:02:57.960 the regularly scheduled meetings at the Public Utility Board for the remainder 00:02:57.960 --> 00:03:03.480 of 2022 occur on the second and fourth Monday at 9 a.m. of every month except 00:03:03.480 --> 00:03:07.680 for November and December in which case the regular meeting will be only on the 00:03:07.680 --> 00:03:15.280 second Monday. Second. We have a second. Ben seconded. All in favor say aye. Aye. 00:03:15.280 --> 00:03:21.320 Opposed? This was also a little housekeeping that we needed to do. All 00:03:21.320 --> 00:03:24.720 right the final item is consider adoption of an ordinance considering all 00:03:24.720 --> 00:03:30.040 matters incident related to the issuance sale and delivery of 300 million in 00:03:30.040 --> 00:03:38.560 principal bonds for the utility that utility system. Go ahead. Good morning 00:03:38.560 --> 00:03:43.800 Randy Klingle Treasury Manager. I have a short presentation today regarding 00:03:43.800 --> 00:03:50.320 utility paper utility commercial paper programs annual bond refunding ordinance. 00:03:50.320 --> 00:03:55.040 I'm sorry to interrupt our screens are currently off we can't see the 00:03:55.040 --> 00:04:13.960 presentation. Practice does not make perfect I'll tell you that right now. Can 00:04:13.960 --> 00:04:20.600 you see my screen? Yes. Okay great there we go. Okay so for a quick overview the 00:04:20.600 --> 00:04:25.160 City Council adopted a master ordinance in January of last year establishing. 00:04:25.160 --> 00:04:32.480 Randy can you go ahead and maximize your your presentation please? It is on my 00:04:32.480 --> 00:04:43.880 screen. Down on the right bottom right the next to the sizing bar if you just 00:04:43.880 --> 00:04:57.560 click on that icon. Yes all right Terry mine is worth school. Can you see this slide deck now? 00:04:57.560 --> 00:05:09.160 Yeah we can see the slide deck it's just not maximized. Okay go ahead. Okay well 00:05:09.160 --> 00:05:15.160 can you see it enough for me to continue? Yes ma'am. Okay sorry about that I checked 00:05:15.160 --> 00:05:20.340 it out we had it earlier. So the City Council adopted the ordinance in January 00:05:20.340 --> 00:05:24.880 2021 establishing the utility extension for commercial paper program in the 00:05:24.880 --> 00:05:29.760 amount of a hundred million dollars and then shortly thereafter in February 23 00:05:29.760 --> 00:05:35.240 or February 23 in 2021 the council amended it to increase it to 300 00:05:35.240 --> 00:05:40.920 million dollars to meet the immediate cash needs of Storm Urie and both in 00:05:40.920 --> 00:05:48.440 January and in February at those times we also have the utilities ordinance for 00:05:48.440 --> 00:05:52.320 refunding approved at the same time they go hand-in-hand so this is an annual 00:05:52.320 --> 00:05:58.040 process and it's important so that the program it offers us the ability to 00:05:58.040 --> 00:06:05.640 delegate the authority. Yes I'm sorry there's a question for mr. Beck. Yes thank 00:06:05.640 --> 00:06:09.680 you. On the screen shouldn't we have that 00:06:09.680 --> 00:06:16.320 overview? You need to advance your slide Randy if you would please. I'm sorry I'm 00:06:16.320 --> 00:06:25.160 seeing the overview. Let me stop sharing how about that and we'll just try to 00:06:25.160 --> 00:06:33.760 start that over again. I just couldn't read the fine print Randy I'm sorry. That 00:06:33.760 --> 00:06:44.920 is okay it's interesting because... There you go. You can see that okay. Yes thanks. 00:06:44.920 --> 00:06:49.800 Do you see it in large or do you see it in the... It's good enough. It's good 00:06:49.800 --> 00:06:55.840 enough okay so we don't mess with it right? Okay I will continue then. So we 00:06:55.840 --> 00:07:01.240 covered we established it in January we increased it in February and that the 00:07:01.240 --> 00:07:05.200 annual refunding ordinance that you have before you today will be an annual 00:07:05.200 --> 00:07:11.400 process so that you provide us the authority to refund the bonds within 00:07:11.400 --> 00:07:15.440 certain parameters in the event that the commercial paper is issued and cannot 00:07:15.440 --> 00:07:22.880 otherwise be retired within the 270 days. So due to Storm Uri we did have to 00:07:22.880 --> 00:07:28.000 issue notes for this commercial program for a hundred and forty million dollars 00:07:28.000 --> 00:07:34.000 and then that hundred and forty million dollars was refunded using the 2021 00:07:34.000 --> 00:07:44.080 utility system revenue refunding bond proceeds from last year. So the benefits 00:07:44.080 --> 00:07:49.880 just as a quick reminder for the CP program in general our main intent at 00:07:49.880 --> 00:07:54.760 the time before Storm Uri was to use it for appropriation authority giving us 00:07:54.760 --> 00:08:00.240 the opportunity to go into contract with the commercial paper program as part of 00:08:00.240 --> 00:08:06.280 the backing for funding the contracts and to be provided and executed by 00:08:06.280 --> 00:08:11.000 council. It provides immediate access to funds within a couple of days and notes 00:08:11.000 --> 00:08:17.840 would only be issued within with interim needs arise as it was with Storm Uri. It 00:08:17.840 --> 00:08:22.040 offers the lowest short-term interest rates and the debt issuance can more 00:08:22.040 --> 00:08:30.320 easily closely align with projected timelines. Benefits of the actual 00:08:30.320 --> 00:08:34.280 annual refunding ordinances which we are considering today it provides staff the 00:08:34.280 --> 00:08:38.880 flexibility to sell refunding bonds to pay off the commercial paper outside of 00:08:38.880 --> 00:08:43.680 the city's normal financing routine. The city can potentially avoid 00:08:43.680 --> 00:08:49.840 additional cost of step-up rates by not having the extended by not having to 00:08:49.840 --> 00:08:54.120 extend the commercial paper terms. Rating agencies also view the refunding 00:08:54.120 --> 00:08:57.800 ordinance as a positive measure to ensure that the city has a quick and 00:08:57.800 --> 00:09:02.040 viable means of paying off the maturity of commercial paper and potential 00:09:02.040 --> 00:09:07.240 investors also view the refunding ordinance as a positive measure. So in 00:09:07.240 --> 00:09:14.480 all that's really all I have other than my apologies that my slideshow did not 00:09:14.480 --> 00:09:21.480 go over that well but this is an annual process that we will see every March. You 00:09:21.480 --> 00:09:29.440 have any questions? Questions? So it's my understanding that this is just to make 00:09:29.440 --> 00:09:34.520 sure that you don't have to go through the entire presentation process for the 00:09:34.520 --> 00:09:40.240 issuance of each bond? Well if we have if we end up going through the bond issuing 00:09:40.240 --> 00:09:44.160 any commercial paper like we do like we did last year we'll still go through the 00:09:44.160 --> 00:09:48.600 entire process to for a bond sale but this just allows us the authority if 00:09:48.600 --> 00:09:53.480 something comes up and we need to issue the notes and get cash staff has the 00:09:53.480 --> 00:09:56.840 direction the authority to do that and then roll it over into a future bond 00:09:56.840 --> 00:10:07.760 sale. Yeah I think that's basically what I was saying. Did you have a question? Then I agree yes. Go ahead Devin. So this 300 million is 00:10:07.760 --> 00:10:13.760 it a different instrument than the previous 100 million or is it just a 00:10:13.760 --> 00:10:17.880 larger amount of the same type of financing instrument? It's a larger 00:10:17.880 --> 00:10:26.560 amount of the same program. Okay and you said there's a 270 day period on the 00:10:26.560 --> 00:10:33.240 commercial paper after which it either so this now rolls or after by 270 days it 00:10:33.240 --> 00:10:38.840 needs to be refunded from a different source? With the example of the Storm 00:10:38.840 --> 00:10:44.120 Uri we received 140 million dollars which came in several different buckets 00:10:44.120 --> 00:10:50.320 and recusips and we rolled that over a couple of times to get to the point 00:10:50.320 --> 00:10:55.120 where it could be added to the bond sale. So we can roll it over until we need 00:10:55.120 --> 00:11:01.240 that bond sale and we can produce those proceeds to refund the total amount. Okay 00:11:01.240 --> 00:11:09.000 and I'm curious if there's a if we don't have any notes outstanding is there a 00:11:09.000 --> 00:11:13.120 carrying fee that's higher on the 300 million than on the 100 million dollar 00:11:13.120 --> 00:11:20.800 kind of line? I believe this is our first year in the program full so I can come 00:11:20.800 --> 00:11:25.480 back with you and provide that information. I know most of the processes 00:11:25.480 --> 00:11:28.480 are the same but when you issue the notes it depends on how much you issue 00:11:28.480 --> 00:11:34.200 out of the 300 million as to like we only issued 140 last time so to produce 00:11:34.200 --> 00:11:40.320 that bond sale obviously is going to be cheaper than if we issued more notes. Yeah 00:11:40.320 --> 00:11:47.920 I was thinking if we if we have no need for any bond sale is there an annual 00:11:47.920 --> 00:11:53.680 annual fee or something like that that we pay to to allow access to it? I 00:11:53.680 --> 00:12:03.000 believe so and I will get that to you yes sir. Other questions? Okay do we have 00:12:03.000 --> 00:12:09.560 a motion to approve the commercial paper program? Devin motioned in a second. 00:12:09.560 --> 00:12:18.440 Lee seconded all in favor say aye. Aye. Opposed? That carries thank you. Management 00:12:18.440 --> 00:12:23.120 reports we have several here we business needed to continue to be conducted 00:12:23.120 --> 00:12:28.040 while we couldn't meet several of them well most of them we did have a phone 00:12:28.040 --> 00:12:32.240 call with Tony Puente Billy and I so that we knew what was going on before 00:12:32.240 --> 00:12:37.640 they went to council but and I know in a couple of cases he reached out to 00:12:37.640 --> 00:12:41.760 individual board members because he knew they would have an interest in them. Does 00:12:41.760 --> 00:12:48.160 anybody wish to have any of these pulled and have a further discussion on any of 00:12:48.160 --> 00:12:54.360 them? All right there's no action on that oh yes go ahead Lee. I'm sorry Madam 00:12:54.360 --> 00:12:59.480 Chair I came in a few minutes late so I'm modestly confused about the piece of 00:12:59.480 --> 00:13:11.000 paper in front of me and our current schedule. Is that something else? I'm gonna stop 00:13:11.000 --> 00:13:18.840 looking at that thank you. All right then we're on to concluding items does any 00:13:18.840 --> 00:13:23.400 board member wish to have an item added to agenda or have anything they'd like 00:13:23.400 --> 00:13:32.520 to say to the public? All right seeing none. 913 do we have a motion to adjourn 00:13:32.520 --> 00:13:38.960 Mr. Cheek? We are adjourned.