WEBVTT 00:00:00.000 --> 00:00:05.960 >> Okay, it is nine o'clock and we do have a quorum. 00:00:05.960 --> 00:00:12.600 So we're called to order the May 23rd, 2022, public utilities board for the city of Denton. 00:00:12.600 --> 00:00:16.880 The first item on the agenda is presentations from the members of the public. 00:00:16.880 --> 00:00:19.080 Does anyone from the public wish to speak? 00:00:19.080 --> 00:00:25.360 Okay, seeing none, then we'll move into the consent agenda. 00:00:25.360 --> 00:00:31.380 We do have a placeholder for a closed session in the event that somebody has a question on item A. 00:00:31.380 --> 00:00:34.280 We would go into closed session and then reconvene after. 00:00:34.280 --> 00:00:41.080 So we'll move ahead with, is there any members wishing to pull any items off the agenda? 00:00:41.080 --> 00:00:44.360 >> I just have a question, a little clarification on A. 00:00:44.360 --> 00:00:46.640 >> On A, okay, so we'll pull item A. 00:00:46.640 --> 00:00:47.520 Any other items? 00:00:47.520 --> 00:00:54.600 All right, so do we have a motion to approve items B, C, D, and E? 00:00:54.600 --> 00:00:55.600 Moved? 00:00:55.600 --> 00:01:00.680 >> Mr. Rybeck moved and Mr. Jumper second, all in favor say aye. 00:01:00.680 --> 00:01:01.800 >> Aye. 00:01:01.800 --> 00:01:04.000 >> Okay, then we'll go into closed session. 00:01:04.000 --> 00:01:06.800 Do I need to do something special, Marcella? 00:01:06.800 --> 00:01:08.080 No, okay. 00:01:08.080 --> 00:01:09.280 >> Just, we're closed, huh? 00:01:09.280 --> 00:01:17.560 >> Okay, I'll wait until Kim tells me the cameras are off. 00:01:17.560 --> 00:01:20.880 >> Okay, it's nine oh three and we are reconvened. 00:01:20.880 --> 00:01:21.400 Go ahead. 00:01:22.400 --> 00:01:26.200 >> Okay, I'm sorry, I didn't know I was going to create all this confusion, but just, 00:01:26.200 --> 00:01:33.280 if I'm reading this right, it sounds like we're eliminating this risk management policy 00:01:33.280 --> 00:01:39.920 that was originally written to give DME pretty much the authority to deal with things 00:01:39.920 --> 00:01:48.640 that bypass certain leadership structures in the case of emergency for expediency. 00:01:48.640 --> 00:01:49.280 Is that right? 00:01:51.120 --> 00:01:52.600 >> I'm Smith Day, by the way. 00:01:52.600 --> 00:01:53.680 >> Okay, sorry. 00:01:53.680 --> 00:01:57.320 >> I'm the executive manager of regulatory and risk division. 00:01:57.320 --> 00:01:58.000 Good morning, PB. 00:01:58.000 --> 00:02:06.320 That isn't quite right, that we're not rewriting this and we're amending it, 00:02:06.320 --> 00:02:10.120 but there is nothing new about, the authorities are the same. 00:02:10.120 --> 00:02:18.520 This policy began in 2014 and under, the reason you see the ordinance which pulls 00:02:18.520 --> 00:02:25.760 over amends the previous ordinance and then every year we take this policy, 00:02:25.760 --> 00:02:30.720 part of our process is a, of course, is a systematic approach 00:02:30.720 --> 00:02:32.960 which forces us to look at it every year. 00:02:32.960 --> 00:02:38.440 So we look at it and we look at anything we can improve and it forces us to come to you 00:02:38.440 --> 00:02:43.000 and to council so that we can do iterative changes every year 00:02:43.000 --> 00:02:44.320 and make it a little bit better. 00:02:44.320 --> 00:02:52.640 So this is the same theme, the same approach that goes back almost eight years, nine years now. 00:02:52.640 --> 00:02:56.000 We just did some tweaks, this one's actually kind of boring, 00:02:56.000 --> 00:02:59.840 it's not that much we did this year, but that's what it is. 00:02:59.840 --> 00:03:03.000 This is just an iterative process to make this policy better. 00:03:03.000 --> 00:03:03.960 >> Okay, I can see that. 00:03:03.960 --> 00:03:08.000 Now, and I guess what I was concerned about, I didn't mind that if you all wanted 00:03:08.000 --> 00:03:11.880 to circumvent certain authorities in cases of emergency to expedite things, 00:03:11.880 --> 00:03:12.920 I'm okay with that. 00:03:12.920 --> 00:03:17.040 I think I was just going to ask was there going to be some review of it at the end 00:03:17.040 --> 00:03:19.520 of a period of time to accountable services? 00:03:19.520 --> 00:03:19.960 >> Annual review? 00:03:19.960 --> 00:03:20.640 >> Yeah, yeah, yeah. 00:03:20.640 --> 00:03:21.160 >> It's required. 00:03:21.160 --> 00:03:23.360 >> Okay, that's it, thank you, sorry for the delay. 00:03:23.360 --> 00:03:29.040 >> The other thing too that I'll mention, Mr. Beck, is that, and the chair of the POV is part 00:03:29.040 --> 00:03:34.560 of a separate risk management committee that gets together quarterly and we review kind 00:03:34.560 --> 00:03:42.400 of where we stand with our entire portfolio for purchase power and so that happens every quarter 00:03:42.400 --> 00:03:46.920 and then, you know, very similar to many other city policies that come, you know, 00:03:46.920 --> 00:03:51.480 to review and approve, re-approval, re-authorize, some of them are required by state law, 00:03:51.480 --> 00:03:54.880 others are simply required by ordinance like this one, we're required to come 00:03:54.880 --> 00:03:59.040 at least once a year and review and re-authorize the risk policy. 00:03:59.040 --> 00:04:00.720 And so that's why we're here for you, sir. 00:04:00.720 --> 00:04:02.080 >> Okay, thank you so much. 00:04:02.080 --> 00:04:02.840 >> All right. 00:04:02.840 --> 00:04:08.360 >> Madam Chair, if I may, so you attend these quarterly meetings? 00:04:08.360 --> 00:04:09.560 >> Yes. 00:04:09.560 --> 00:04:12.240 >> Okay, that's great, I didn't know. 00:04:12.240 --> 00:04:14.400 >> Oh, okay, yes. 00:04:14.400 --> 00:04:18.400 >> I was just wondering, would it be possible for you just to give us a brief update 00:04:18.400 --> 00:04:20.440 at the meeting after the quarterly meeting? 00:04:20.440 --> 00:04:22.800 >> How do we go about doing that, Tony? 00:04:22.800 --> 00:04:26.320 >> Yeah, I mean, I think that's probably within, looking at Marcella, 00:04:26.320 --> 00:04:29.880 but I think that's probably within context of our discussion here. 00:04:29.880 --> 00:04:33.360 We do provide the minutes to the council, I believe. 00:04:33.360 --> 00:04:38.200 I don't think they come to the POV, but we can certainly talk about that and we can start sending 00:04:38.200 --> 00:04:40.480 that to you on a quarterly basis as well. 00:04:40.480 --> 00:04:43.800 That way you have some idea of what we're talking about within that committee. 00:04:43.800 --> 00:04:48.320 >> Well, thank you, I think that'd be very helpful because here we are with questions maybe we don't need 00:04:48.320 --> 00:04:52.520 to ask if we knew a little more about kind of what the ongoing process is. 00:04:52.520 --> 00:04:55.040 >> Good enough. 00:04:55.040 --> 00:04:57.360 Oh, yes, go ahead, Devin. 00:04:57.360 --> 00:04:59.760 >> Thank you, Madam Chair. 00:04:59.760 --> 00:05:04.680 Along the same lines, looking at this, this is risk management policy and that oversight is important. 00:05:04.680 --> 00:05:13.040 And where is the risk management committee's role outlined? 00:05:13.040 --> 00:05:18.040 >> It's, actually in the policy, each role is defined in there. 00:05:18.040 --> 00:05:19.280 >> Okay, I didn't. 00:05:19.280 --> 00:05:27.280 >> And there's, of course, the general manager, there's the POV chair, 00:05:27.280 --> 00:05:33.200 and there's a representative city manager, and finance, all these roles from different parts 00:05:33.200 --> 00:05:38.520 of the city collectively come into that meeting or make up that committee. 00:05:38.520 --> 00:05:42.680 >> And I would also mention that there's two additional ex officio members. 00:05:42.680 --> 00:05:46.680 One's the city auditor and the other one is the city attorney or their designee. 00:05:46.680 --> 00:05:50.040 And so those individuals also attend those meetings on a quarterly basis. 00:05:50.040 --> 00:05:54.520 And I'll mention that in the absence of the POV chair, the vice chair usually attends, 00:05:54.520 --> 00:05:58.960 so Mr. Cheek has attended those as well. 00:05:58.960 --> 00:06:07.520 And one additional thing I noticed in the policy is it's very focused on Ford purchase, hedging, 00:06:07.520 --> 00:06:13.320 risk management, it does not include anything I could find 00:06:13.320 --> 00:06:16.960 about Denton's commitment to 100% renewable energy. 00:06:16.960 --> 00:06:22.080 And while we obviously have a lot of PPAs for renewable energy and we're on, you know, 00:06:22.080 --> 00:06:30.520 we're at 100% now, theoretically by the following the policy, the EMO could, you know, 00:06:30.520 --> 00:06:35.680 basically sell our energy from our PPAs and buy energy from, you know, 00:06:35.680 --> 00:06:37.920 on a thermal contract or something like that. 00:06:37.920 --> 00:06:40.760 Obviously, that's not what's going to happen. 00:06:40.760 --> 00:06:45.720 But I wonder if we could add in the executive summary or somewhere kind of at the top 00:06:45.720 --> 00:06:51.640 of the document the long-term commitment of Denton to 100% renewable energy. 00:06:51.640 --> 00:06:55.640 >> So we have a separate policy called Denton renewable resource plan that was adopted 00:06:55.640 --> 00:06:58.520 by the council in 2018 that sets out that goal. 00:06:58.520 --> 00:07:06.080 And so that policy already exists and so as we're managing the PPAs and the purchase power process 00:07:06.080 --> 00:07:11.800 through this policy, we always have to be cognizant of that 100% renewable goal, right? 00:07:11.800 --> 00:07:17.560 And so that policy is a policy that we're working on and we're committed to bringing back an update 00:07:17.560 --> 00:07:20.640 of that policy by the end of this calendar year. 00:07:20.640 --> 00:07:25.920 And so they are two separate policies, but obviously they work in tandem with each other. 00:07:25.920 --> 00:07:27.920 Yes, sir? 00:07:27.920 --> 00:07:30.080 >> Anything else? 00:07:30.080 --> 00:07:35.120 >> All right, do we have a motion to approve item A? 00:07:35.120 --> 00:07:36.040 >> I move. 00:07:36.040 --> 00:07:36.800 >> And a second? 00:07:36.800 --> 00:07:37.880 Mr. Redback? 00:07:37.880 --> 00:07:39.160 All in favor say aye. 00:07:39.160 --> 00:07:40.040 >> Aye. 00:07:40.040 --> 00:07:40.520 >> Thank you. 00:07:40.520 --> 00:07:41.400 >> Thank you. 00:07:41.400 --> 00:07:42.920 >> Thank you. 00:07:42.920 --> 00:07:47.000 >> Items for individual consideration, the May 9th, 00:07:47.000 --> 00:07:52.360 2022 PUB minutes, were there any changes or corrections? 00:07:52.360 --> 00:07:55.800 Seeing none, do we have a motion to approve? 00:07:55.800 --> 00:07:56.600 >> So moved. 00:07:56.600 --> 00:07:57.640 >> Barbara moves. 00:07:57.640 --> 00:07:58.960 Do we have a second? 00:07:58.960 --> 00:08:00.160 >> Second. 00:08:00.160 --> 00:08:00.960 >> Mr. Peck, seconds. 00:08:00.960 --> 00:08:02.200 All in favor say aye. 00:08:02.200 --> 00:08:03.560 >> Aye. 00:08:03.560 --> 00:08:11.640 >> Okay, item B, consider issuance of a delivery of up to 121 million in certificates. 00:08:11.640 --> 00:08:14.040 >> Good morning. 00:08:14.040 --> 00:08:15.760 Randy Klingle, Treasury Manager. 00:08:15.760 --> 00:08:19.520 >> Madam Chair, I'm doing one presentation for this item and -- 00:08:19.520 --> 00:08:19.880 >> Okay. 00:08:19.880 --> 00:08:22.520 >> -- 074, so if you would mind reading that one too. 00:08:22.520 --> 00:08:23.320 >> Thank you. 00:08:23.320 --> 00:08:24.480 >> Mm-hmm. 00:08:24.480 --> 00:08:26.200 >> Does it mean to call that a second item? 00:08:26.200 --> 00:08:31.680 >> Oh, and then item C, consider recommending the adoption of an ordinance 00:08:31.680 --> 00:08:38.760 in all matters incident related to the issuance and sale and delivery up to 89 million in debt. 00:08:38.760 --> 00:08:39.520 >> Yes, thank you. 00:08:39.520 --> 00:08:40.840 >> Thank you. 00:08:40.840 --> 00:08:44.800 >> I have a brief presentation today about the upcoming bond sale, particularly the certificates 00:08:44.800 --> 00:08:47.120 of obligation for you to review. 00:08:47.120 --> 00:08:55.360 The total bond sale for the certificate of obligations is 120 million dollars. 00:08:55.360 --> 00:08:59.280 It encompasses general government CO utility projects -- excuse me, 00:08:59.280 --> 00:09:02.600 government -- general government projects, water, wastewater, 00:09:02.600 --> 00:09:07.440 electric utility system projects, as well as solid waste and some issuance costs. 00:09:07.440 --> 00:09:13.960 So it's 121 million dollars in total for the CO obligation for this summer sale. 00:09:13.960 --> 00:09:18.480 Last time I presented in front of you was the notice of intent, which you recommended, 00:09:18.480 --> 00:09:21.440 and it went to council on April 5th and was approved. 00:09:21.440 --> 00:09:25.760 With a notice of intent, we issue that publication in the Denton Record Chronicle, 00:09:25.760 --> 00:09:29.880 and we issued that on the 14th and the 21st as required. 00:09:29.880 --> 00:09:34.440 And the bond ordinance authorizing the sale of the COs is at least 46 days after the date 00:09:34.440 --> 00:09:38.840 of the first publication, and so this is the bond ordinance that we are bringing forth 00:09:38.840 --> 00:09:43.640 to you guys today for recommendations, and that will go forth to council on June 7th. 00:09:43.640 --> 00:09:46.600 So we meet all those parameters. 00:09:46.600 --> 00:09:52.840 Most of the presentation is a duplicate of the project lists that are in your AIS. 00:09:52.840 --> 00:09:56.520 They were budgeted items that you saw the list through the budgeting process, 00:09:56.520 --> 00:09:59.280 also through the notice of intent presentation. 00:09:59.280 --> 00:10:03.040 It was the same list, but I'm glad to say that list has been reduced 00:10:03.040 --> 00:10:05.840 in dollar amounts by almost 33 million dollars. 00:10:05.840 --> 00:10:10.280 All the departments went back and had the opportunity throughout this fiscal year 00:10:10.280 --> 00:10:13.200 with the budget process and looking at the funds available. 00:10:13.200 --> 00:10:17.080 And also timelines of their projects were able to reduce the total sale 00:10:17.080 --> 00:10:19.200 by almost 33 million dollars. 00:10:19.200 --> 00:10:25.560 So the first list we have is your water department was at 23.4 million dollars 00:10:25.560 --> 00:10:30.160 for the upcoming bond sale, and that is approximately 11 million dollars less 00:10:30.160 --> 00:10:33.600 than the budget, and I will not go over all of these projects, 00:10:33.600 --> 00:10:35.360 but you're more than happy at the end. 00:10:35.360 --> 00:10:37.680 If you have any questions about them in more detail, 00:10:37.680 --> 00:10:41.680 we do have staff here to assist me with that. 00:10:41.680 --> 00:10:45.080 Wastewater has a long list. It will take up two slides. 00:10:45.080 --> 00:10:48.920 And for wastewater, it's a 41.1 million dollar sale 00:10:48.920 --> 00:10:54.440 with three million reduced from its original budget. 00:10:54.440 --> 00:11:00.040 Electric, 33.9 million dollars, and this department reduced their notice 00:11:00.040 --> 00:11:05.120 of intent budget to bond sale by 19 million dollars. 00:11:05.120 --> 00:11:08.760 And last, we have solid waste, which kept their budget the same 00:11:08.760 --> 00:11:13.080 at 6.9 million dollars for this department. 00:11:13.080 --> 00:11:17.400 So the total project list for utilities and solid waste, project money only, 00:11:17.400 --> 00:11:24.680 water at 23.4, wastewater at 41.1, electric at 33.9, and solid waste at 6.9, 00:11:24.680 --> 00:11:31.040 which is a total of about 105.5 million dollars worth of projects. 00:11:31.040 --> 00:11:36.240 Along with this sale this summer, we're doing a refunding of the GEO bonds 00:11:36.240 --> 00:11:39.440 and their certificate of obligations from the 2012 series. 00:11:39.440 --> 00:11:44.440 We have outstanding debt of about 28 million dollars in that process. 00:11:44.440 --> 00:11:47.480 And we're hoping to save about 1.1 million dollars. 00:11:47.480 --> 00:11:50.240 That's based on market conditions of last week. 00:11:50.240 --> 00:11:53.440 We will keep an eye on that with our FA as we go along. 00:11:53.440 --> 00:11:57.160 We can do the refunding. If it makes sense for us, we can also pull it. 00:11:57.160 --> 00:12:01.280 We also have the opportunity to, you know, only refund portions 00:12:01.280 --> 00:12:03.280 of the 2012 that makes sense for us. 00:12:03.280 --> 00:12:06.400 So right now, the majority of the savings is in the utilities, 00:12:06.400 --> 00:12:11.280 the solid waste, water, wastewater, and electric. 00:12:11.280 --> 00:12:15.520 Next steps, with your recommendation, I'll be going to council on June 7th 00:12:15.520 --> 00:12:20.320 to consider this bond ordinance for the CO and the GEO debt. 00:12:20.320 --> 00:12:22.720 And June 16th would be the sale date. 00:12:22.720 --> 00:12:28.240 And then we would receive proceeds around July 21st. 00:12:28.240 --> 00:12:29.760 And that is all I have. 00:12:29.760 --> 00:12:33.360 If we have any questions specific to that or the projects? 00:12:33.360 --> 00:12:35.560 Questions? 00:12:35.560 --> 00:12:42.880 >> I have one regarding, excuse me, electric bonds. 00:12:42.880 --> 00:12:49.400 Do any of those proceeds go to anything other than our own construction? 00:12:49.400 --> 00:12:52.200 Like TNPA, for instance, if you don't-- 00:12:52.200 --> 00:12:53.320 >> I'll have to defer to Mr. Puente. 00:12:53.320 --> 00:12:55.000 >> That'd be separate. 00:12:55.000 --> 00:12:59.520 >> Yeah, so any of the projects that are TNPA related, obviously, we get reimbursed. 00:12:59.520 --> 00:13:01.120 We have to upfront that. 00:13:01.120 --> 00:13:06.480 But we do use that resolution that TNPA passes as our funding source. 00:13:06.480 --> 00:13:10.040 So we've gotten away from using our own bonds to fund those projects. 00:13:10.040 --> 00:13:13.800 Obviously, we're using, you know, inter-fund cash, but we're not using-- 00:13:13.800 --> 00:13:15.600 issuing any bonds for those projects any longer. 00:13:15.600 --> 00:13:21.480 So unless, of course, if we're going to do the project and we're going to keep the asset, 00:13:21.480 --> 00:13:23.720 then that-- we fund ourselves. 00:13:23.720 --> 00:13:27.040 And then we include that in our transmission cost of service filing. 00:13:27.040 --> 00:13:28.720 >> Okay. 00:13:28.720 --> 00:13:31.160 >> Mr. Taylor? 00:13:31.160 --> 00:13:33.400 >> Thank you. 00:13:33.400 --> 00:13:36.680 If you could go back to the slide regarding refunding. 00:13:36.680 --> 00:13:40.240 I'm not very familiar with this process. 00:13:40.240 --> 00:13:45.920 So the existing 28 million are bonds that were issued 8 or 10 years ago 00:13:45.920 --> 00:13:48.360 and they're at the 4.26% rate, is that-- 00:13:48.360 --> 00:13:49.160 >> That's the average. 00:13:49.160 --> 00:13:51.080 They're over 9 years old. 00:13:51.080 --> 00:13:53.080 That's the callable time is 9 years. 00:13:53.080 --> 00:13:58.280 And the average of those is 4.26 and we're projecting that we can get 3.34. 00:13:58.280 --> 00:14:01.000 >> Okay. And that's just-- we have to wait 9 years before we can-- 00:14:01.000 --> 00:14:03.760 >> Yes. Before they become callable. 00:14:03.760 --> 00:14:04.560 >> Yep. Okay. 00:14:04.560 --> 00:14:04.720 >> Yes. 00:14:04.720 --> 00:14:05.200 >> All right. 00:14:05.200 --> 00:14:08.400 And then-- okay, thank you. 00:14:08.400 --> 00:14:10.600 >> Other questions? 00:14:10.600 --> 00:14:11.480 All right. 00:14:11.480 --> 00:14:13.440 And we'll have to have separate motions. 00:14:13.440 --> 00:14:16.480 Do we have a motion to approve item B? 00:14:16.480 --> 00:14:17.160 >> Yes. 00:14:17.160 --> 00:14:19.280 >> Mr. Jumper moved. 00:14:19.280 --> 00:14:20.360 In a second. 00:14:20.360 --> 00:14:22.800 Mr. Beck, all in favor say aye. 00:14:22.800 --> 00:14:24.240 >> Aye. 00:14:24.240 --> 00:14:28.200 >> And then on the refunding item C, do we have a motion to approve? 00:14:28.200 --> 00:14:30.280 Mr. Taylor? 00:14:30.280 --> 00:14:30.560 >> So-- 00:14:30.560 --> 00:14:31.760 >> May I second? 00:14:31.760 --> 00:14:32.640 Mr. Jumper? 00:14:32.640 --> 00:14:34.320 All in favor say aye. 00:14:34.320 --> 00:14:35.360 >> Aye. 00:14:35.360 --> 00:14:36.440 >> Motion carries. 00:14:36.440 --> 00:14:40.640 Item D, recommend considering adoption of an ordinance 00:14:40.640 --> 00:14:45.360 to execute professional service agreement with Kimley, Horn and Associates. 00:14:58.200 --> 00:15:07.240 [ Pause ] 00:15:07.240 --> 00:15:07.600 >> Good morning. 00:15:07.600 --> 00:15:08.560 My name is David Brown. 00:15:08.560 --> 00:15:11.320 I'm a construction project manager for Denton Water Utilities. 00:15:11.320 --> 00:15:16.120 Today, I'm going to bring you an exciting project, a headworks project over at our plant, 00:15:16.120 --> 00:15:18.960 our water reclamation plant. 00:15:18.960 --> 00:15:21.600 So, let's talk about what's at the plant right now. 00:15:21.600 --> 00:15:23.240 We've talked about it before. 00:15:23.240 --> 00:15:28.760 21 MGD on the daily annual flow and 46 on the peak MGD. 00:15:28.760 --> 00:15:35.720 We are going to request a rerate for 30 MGD and up to 69 on the peak flow. 00:15:35.720 --> 00:15:40.640 So, the existing wastewater plant is over 60 years old. 00:15:40.640 --> 00:15:43.960 The headworks, the headworks facility is actually where all the influence comes 00:15:43.960 --> 00:15:45.600 in from the city into the plant. 00:15:45.600 --> 00:15:48.640 It is the start of the process at the plant. 00:15:48.640 --> 00:15:51.880 Currently, it's over 40 years old and it's out of date. 00:15:51.880 --> 00:15:56.280 It's later technology that's going through the process. 00:15:56.280 --> 00:15:58.800 So, this is where it first comes in and where it's screened 00:15:58.800 --> 00:16:01.320 and where it starts processing into the plant. 00:16:01.320 --> 00:16:04.840 It's undersized and it's out of life. 00:16:04.840 --> 00:16:08.600 Of course, let's talk about the 75/90 real TCEQ. 00:16:08.600 --> 00:16:13.560 At 75% of max flows that we have, our permitted flows on the annual daily, 00:16:13.560 --> 00:16:17.440 that's when we need to start an upgrade or an expansion. 00:16:17.440 --> 00:16:20.920 And at 90%, we need to be in construction of those. 00:16:20.920 --> 00:16:26.480 So, the design at 75% and construction at 90%. 00:16:26.480 --> 00:16:28.760 So, with that, we have the headworks. 00:16:28.760 --> 00:16:32.880 Headworks, this new design will include lots of new technology, 00:16:32.880 --> 00:16:37.520 mechanical screening, wet well station and grit removal. 00:16:37.520 --> 00:16:41.880 And what this does, this allows to be able to start the process with a good system 00:16:41.880 --> 00:16:45.360 of removing these items that are in wastewater. 00:16:45.360 --> 00:16:50.880 We remove them and that takes the pressure off other equipment inside the plant. 00:16:50.880 --> 00:16:53.400 This will improve the process of cleaning the water, 00:16:53.400 --> 00:16:57.440 return to the environment, ultimately the community. 00:16:57.440 --> 00:17:01.720 Also included, we do have some issues over there in the piping 00:17:01.720 --> 00:17:04.640 that comes into the headworks, existing headworks. 00:17:04.640 --> 00:17:09.120 So, with this design, we'll also have a 60-inch gravity main coming in 00:17:09.120 --> 00:17:13.680 from location coming in from Pecan Creek and Cooper Creek 00:17:13.680 --> 00:17:17.000 and also from our state school interceptor, the Hickory Creek line. 00:17:17.000 --> 00:17:21.880 So, 60-inch gravity main also is a 48-inch force main, 00:17:21.880 --> 00:17:25.000 which this force main will allow us from the pump station, 00:17:25.000 --> 00:17:27.160 from our lift station in the headwork facility, 00:17:27.160 --> 00:17:34.960 allow us to facilitate moving that screened water into other areas of the plant. 00:17:34.960 --> 00:17:42.080 We can go to a diurnal basin, we can go to other items to be ready to process that water. 00:17:42.080 --> 00:17:47.120 We use the RFQ 7574, a pre-qualification list with engineering firms. 00:17:47.120 --> 00:17:52.600 We had interviews with all of these firms and we would like to recommend that we enter 00:17:52.600 --> 00:17:58.080 in a contract for design of the Pecan Creek headworks station 00:17:58.080 --> 00:18:07.720 over at Pecan Creek Reclamation Plant with Kim Lee Horne and Associates for $3,828,700. 00:18:07.720 --> 00:18:10.360 Any questions? 00:18:10.360 --> 00:18:14.080 >> What's your current estimate for the construction of this facility? 00:18:14.080 --> 00:18:17.960 >> On the OPCC is $32 million. 00:18:17.960 --> 00:18:22.960 >> Our engineering is about 11%, stopped at my end, right? 00:18:22.960 --> 00:18:24.000 >> Yeah. 00:18:24.000 --> 00:18:25.600 >> All right, thank you. 00:18:25.600 --> 00:18:26.520 >> Other questions? 00:18:26.520 --> 00:18:30.040 >> I have a question just in general terms. 00:18:30.040 --> 00:18:34.360 I'm selecting Kim Lee Horne, Kim Lee Horne. 00:18:34.360 --> 00:18:36.880 Your contract amount, was that in line with the others 00:18:36.880 --> 00:18:40.400 or did they put this together after you selected them? 00:18:40.400 --> 00:18:42.760 >> This is put together after selecting them. 00:18:42.760 --> 00:18:45.720 One of the things we brought them in, they brought us a vision. 00:18:45.720 --> 00:18:48.000 They brought us a vision of this location. 00:18:48.000 --> 00:18:52.080 It really allows us to be able to move forward. 00:18:52.080 --> 00:18:55.240 It's a good location and they brought that vision to us. 00:18:55.240 --> 00:18:55.840 >> Very good. 00:18:55.840 --> 00:18:57.000 >> Lori Hewlett, Purchasing Manager. 00:18:57.000 --> 00:19:01.520 I just wanted to add that on request for qualifications, you cannot ask for price 00:19:01.520 --> 00:19:05.160 until after you have went to the top rank person. 00:19:05.160 --> 00:19:06.360 >> Right, so it was an RFQ. 00:19:06.360 --> 00:19:07.320 >> Yeah, it was an RFQ. 00:19:07.320 --> 00:19:08.840 >> Okay, thank you. 00:19:08.840 --> 00:19:12.080 >> Other questions? 00:19:12.080 --> 00:19:12.800 >> Yes. 00:19:12.800 --> 00:19:13.920 >> Oh, go ahead. 00:19:13.920 --> 00:19:17.760 >> So at the beginning you were saying how old everything was. 00:19:17.760 --> 00:19:19.160 >> Yes, sir. 00:19:19.160 --> 00:19:23.320 >> What's typical, like what's an expected life for some of this? 00:19:23.320 --> 00:19:25.520 >> Forty years is probably expected life. 00:19:25.520 --> 00:19:29.080 I mean, 40 years, we have, you know, we have done some upgrades 00:19:29.080 --> 00:19:33.160 to it throughout the time, but yeah, 40 years is about the max on it. 00:19:33.160 --> 00:19:35.200 Of course, the plant is 60 years old. 00:19:35.200 --> 00:19:35.560 >> Right. 00:19:35.560 --> 00:19:40.000 >> So we're going to do some improvements to be able to move forward at that location. 00:19:40.000 --> 00:19:43.520 >> And then you talked about 75% and 90% design and construction. 00:19:43.520 --> 00:19:46.760 What capacity are we at currently? 00:19:46.760 --> 00:19:52.120 >> Right now we're at about 71% of our average daily flows. 00:19:52.120 --> 00:19:56.400 >> Other questions? 00:19:56.400 --> 00:19:59.200 All right, do we have a motion to approve item D? 00:19:59.200 --> 00:20:00.240 >> Second. 00:20:00.240 --> 00:20:01.480 >> Barber moved. 00:20:01.480 --> 00:20:02.760 Lee seconds. 00:20:02.760 --> 00:20:03.960 All in favor say aye. 00:20:03.960 --> 00:20:04.960 >> Aye. 00:20:04.960 --> 00:20:05.800 >> Thank you. 00:20:05.800 --> 00:20:07.680 >> Management reports. 00:20:07.680 --> 00:20:09.480 >> So Madam Chair and members of the POV. 00:20:09.480 --> 00:20:13.120 So for the management report we do have a follow up memo that we sent to you 00:20:13.120 --> 00:20:15.760 for Brian Borner on the composting program. 00:20:15.760 --> 00:20:19.320 Certainly Brian's here and I just want to first kind of open up to see 00:20:19.320 --> 00:20:22.680 if anyone has any questions regarding that memo. 00:20:22.680 --> 00:20:27.920 >> I do have one quick one. 00:20:27.920 --> 00:20:31.960 It mentions food peelings in there. 00:20:31.960 --> 00:20:39.160 So is that limited, what if, Brian's coming up. 00:20:39.160 --> 00:20:44.840 >> Okay. Anything food related or just the peelings? 00:20:44.840 --> 00:20:51.320 In other words, say I cooked some squash and didn't want it all. 00:20:51.320 --> 00:20:53.560 So could I dump that in there with it? 00:20:53.560 --> 00:20:54.960 >> And that's a very good question. 00:20:54.960 --> 00:20:58.680 Again, Brian Borner, I am the Director of Solid Waste and Recycling for the City 00:20:58.680 --> 00:21:02.080 of Dent and appreciate the opportunity to respond to your question. 00:21:02.080 --> 00:21:06.160 Currently with our partners at wastewater and through beneficial reuse, 00:21:06.160 --> 00:21:10.040 we're composting biosolids and the organic material that we collect curbside 00:21:10.040 --> 00:21:13.000 which includes yard trimmings and things of that nature. 00:21:13.000 --> 00:21:16.160 As a result, and the way they're permitted and their operation is set up, 00:21:16.160 --> 00:21:19.320 we cannot have any post-consumer materials put in. 00:21:19.320 --> 00:21:24.800 So anything on the front end of cooking, so peels, watermelon rinds, cantaloupe, 00:21:24.800 --> 00:21:27.280 you know, seeds, things like that, that can all go in there. 00:21:27.280 --> 00:21:31.200 But the minute we start cooking and adding spices, oils, fats, greases, 00:21:31.200 --> 00:21:36.160 that's where it sort of turns the system to where it can't be used. 00:21:36.160 --> 00:21:38.600 So, you know, we can collect a good portion of this 00:21:38.600 --> 00:21:42.960 in our existing yard waste and organics collection program. 00:21:42.960 --> 00:21:46.920 So again, you know, before it's cooked, during the preparation process, raw, 00:21:46.920 --> 00:21:50.880 you know, peels, you know, you buy that bag of salad and it sits in your refrigerator 00:21:50.880 --> 00:21:54.720 and, you know, this green slimy thing you want to get rid of, we'll take that. 00:21:54.720 --> 00:21:58.120 But again, the minute you put salad dressing on top of it or try to cook it, 00:21:58.120 --> 00:22:01.640 then, you know, that cannot go into the yard waste cart or the bag. 00:22:01.640 --> 00:22:02.840 >> Great, great, thank you. 00:22:02.840 --> 00:22:05.080 >> Thank you. 00:22:05.080 --> 00:22:06.040 >> Go ahead. 00:22:06.040 --> 00:22:11.600 >> So, the memo mentioned the downtown area pilot program for restaurants. 00:22:11.600 --> 00:22:14.360 Is that the same rules or does that go to-- 00:22:14.360 --> 00:22:16.960 >> No, that will be a different-- two things. 00:22:16.960 --> 00:22:20.040 First of all, that pilot has yet to be set up. 00:22:20.040 --> 00:22:24.520 We've run into some supply chain issues and the critical piece of equipment 00:22:24.520 --> 00:22:28.600 that we need to procure currently is unavailable and the one person who said 00:22:28.600 --> 00:22:33.560 that they could has come in with an exorbitant price so we're going to be going back out to try 00:22:33.560 --> 00:22:35.720 to find that piece of equipment. 00:22:35.720 --> 00:22:40.080 But secondarily, what we're wanting to do is actually take any food waste, 00:22:40.080 --> 00:22:44.520 whether it's pre-consumer, post-consumer, fats, oils and greases, things of that nature, 00:22:44.520 --> 00:22:49.440 be able to grind it up and actually put it into the aerobic digesters at the wastewater plant. 00:22:49.440 --> 00:22:54.320 They get this material anyway, they want this material, generate the methane off the top, 00:22:54.320 --> 00:22:57.440 you know, recycle that material and then through the biosolid program, 00:22:57.440 --> 00:22:59.080 I'd be able to compost the rest. 00:22:59.080 --> 00:23:03.920 So again, it's using existing equipment with the capacity that we have. 00:23:03.920 --> 00:23:08.000 And once we can prove that up and that it doesn't affect either wastewater systems 00:23:08.000 --> 00:23:12.520 or our system to be able to collect it, then we can expand that to a much larger program. 00:23:12.520 --> 00:23:15.880 >> And that would probably be some kind of special cart or container picked 00:23:15.880 --> 00:23:18.120 up either daily or on a special day of the week? 00:23:18.120 --> 00:23:20.800 >> I'm not even going to start to speculate on what that's going to look like. 00:23:20.800 --> 00:23:24.480 But what I can tell you is, you know, in here, we go back 00:23:24.480 --> 00:23:26.440 into our comprehensive solid waste management strategy. 00:23:26.440 --> 00:23:29.520 We did our waste characterization. 00:23:29.520 --> 00:23:32.840 Probably 80% of the big hit that we can take off of this is going 00:23:32.840 --> 00:23:35.600 to be in the commercial sector, okay? 00:23:35.600 --> 00:23:38.920 So again, that's where we're going to focus, that's where we're going to start. 00:23:38.920 --> 00:23:44.000 And then from a residential standpoint, going back into the common sense things, you know, 00:23:44.000 --> 00:23:47.840 don't buy what you don't need, don't buy too much of it. 00:23:47.840 --> 00:23:50.680 Like your mom said, clean your plate so you don't have anything extra. 00:23:50.680 --> 00:23:52.640 Spoil and go after. 00:23:52.640 --> 00:23:56.640 But then finally, you know, if you've got this organic material, you know, at home composting. 00:23:56.640 --> 00:24:01.840 So again, you know, reevaluating and revitalizing those programs so that, you know, 00:24:01.840 --> 00:24:05.480 you have material, you know, at your disposal in your yard 00:24:05.480 --> 00:24:07.800 that you can use for that beneficial reuse. 00:24:07.800 --> 00:24:14.720 >> And once supply chain issues are resolved and you can purchase the equipment, 00:24:14.720 --> 00:24:17.680 what's the timeline to start with the commercial? 00:24:17.680 --> 00:24:22.520 Would it be like within six months of getting it set up, you'd have one route or something, 00:24:22.520 --> 00:24:24.200 or do you have some kind of plans along the lines? 00:24:24.200 --> 00:24:29.080 >> Well again, you know, we've got a six-month program to evaluate it in the valley area downtown. 00:24:29.080 --> 00:24:37.240 And then from that, we'll be taking the -- we'll be taking that data and then evaluating 00:24:37.240 --> 00:24:38.680 and answering those questions. 00:24:38.680 --> 00:24:43.040 I think, you know, as we get ready to roll out our comprehensive solid waste management strategy, 00:24:43.040 --> 00:24:47.400 year one is going to be mostly administrative, getting our codes, ordinances and everything. 00:24:47.400 --> 00:24:52.240 And RFQs, RFIs in line to identify, you know, third-party contractors 00:24:52.240 --> 00:24:53.760 and everything else we need to do it. 00:24:53.760 --> 00:24:57.000 Year two, which is, you know, we're already thinking two and three years ahead of time, 00:24:57.000 --> 00:24:58.680 that's when we start looking at the physical stuff. 00:24:58.680 --> 00:25:05.520 So we may still be a couple of years out before we do some industrial level commercial organics 00:25:05.520 --> 00:25:10.120 waste management, but again, it's getting everything in line and not jumping too soon 00:25:10.120 --> 00:25:14.640 so that we're not putting ourselves in a situation that is high cost, low return. 00:25:14.640 --> 00:25:15.600 >> All right, thank you. 00:25:15.600 --> 00:25:17.880 >> Thank you. 00:25:17.880 --> 00:25:21.240 >> All right, thank you. 00:25:21.240 --> 00:25:22.840 >> Thank you. 00:25:22.840 --> 00:25:26.560 >> So the next item is your future agenda items. 00:25:26.560 --> 00:25:31.920 And as we mentioned before, we have a number of budget items that are coming up here for you 00:25:31.920 --> 00:25:36.280 in the next couple of meetings and ultimately leads to a recommendation from this board 00:25:36.280 --> 00:25:39.280 to the council regarding the budget and the rates and all that. 00:25:39.280 --> 00:25:41.360 Obviously today, there's a presentation today 00:25:41.360 --> 00:25:45.920 that the finance department will be making that's related to the budget. 00:25:45.920 --> 00:25:53.560 And then the future action items, obviously we think we've now completed item one, 00:25:53.560 --> 00:25:57.440 which I know was part of the question that you had at the last meeting, that's been completed. 00:25:57.440 --> 00:26:00.600 The next item is regarding solar installations. 00:26:00.600 --> 00:26:02.400 That is an item that we're working on. 00:26:02.400 --> 00:26:07.880 The plan is to take that discussion along with a broader discussion about the solar program 00:26:07.880 --> 00:26:11.560 and what we're doing with a number of other programs that we have at DME 00:26:11.560 --> 00:26:15.680 to the sustainability committee first and then we'll bring that back to the PUB. 00:26:15.680 --> 00:26:18.960 So again, I know it's an old request. 00:26:18.960 --> 00:26:22.440 I can assure you we are working on it along with all the myriad of other things 00:26:22.440 --> 00:26:24.720 that we're working on, so we've not forgotten about it. 00:26:24.720 --> 00:26:26.960 It's still on here for that purpose. 00:26:26.960 --> 00:26:31.840 And then there was a question the last time about potentially going to once a month meeting. 00:26:31.840 --> 00:26:34.720 I can tell you that we've had an internal discussion about that 00:26:34.720 --> 00:26:41.520 and that discussion will be coming back to you at a near meeting that we're planning through. 00:26:41.520 --> 00:26:45.600 And I think the purchasing and compliance department will be bringing a discussion to you 00:26:45.600 --> 00:26:48.240 with a number of different options for you to have a conversation 00:26:48.240 --> 00:26:49.800 about and provide us some direction. 00:26:49.800 --> 00:26:52.680 So anyway, so with that, that is our management update. 00:26:52.680 --> 00:26:55.800 Happy to answer any questions you have. 00:26:55.800 --> 00:26:56.320 >> Go ahead, Billy. 00:26:56.320 --> 00:26:58.880 >> Is this where we should discuss the next meeting? 00:26:58.880 --> 00:27:00.640 >> No, that's under concluding items. 00:27:00.640 --> 00:27:01.920 >> Okay, all right. 00:27:01.920 --> 00:27:06.080 Any questions? 00:27:06.080 --> 00:27:07.160 All right. 00:27:07.160 --> 00:27:11.600 Onto concluding items, I do have one item. 00:27:11.600 --> 00:27:16.680 Both Billy and I will be gone on June 13th, so we need to make sure that we do have a quorum. 00:27:16.680 --> 00:27:23.280 Is anyone else going to be missing on June 13th? 00:27:23.280 --> 00:27:28.320 Barbara will be chair as the secretary, so all right, I guess we do have a quorum. 00:27:28.320 --> 00:27:32.720 Any other concluding items from any board members? 00:27:32.720 --> 00:27:35.440 Okay, I see none. 00:27:35.440 --> 00:27:36.880 Let's move into the work session. 00:27:36.880 --> 00:27:46.240 Receive a report, hold a discussion, and give staff direction regarding fiscal year 2022-23 utility budget forecasts. 00:27:46.240 --> 00:27:56.240 >> Good morning, PUB. 00:27:56.240 --> 00:27:57.320 I'm Danielle Stanford. 00:27:57.320 --> 00:28:06.760 I'm the interim budget manager, and this morning we're going to be talking about the utility forecast for our budgets. 00:28:06.760 --> 00:28:10.320 So we'll talk about the budget process overview. 00:28:10.320 --> 00:28:17.520 We'll share a forecast for each utility, and then we'll go over the next steps. 00:28:17.520 --> 00:28:21.720 This is the team that makes up the utility budget team. 00:28:21.720 --> 00:28:27.440 We have Jennifer Gonzalez, this is assigned to our solid waste and recycling department. 00:28:27.440 --> 00:28:33.480 Our senior financial analyst, Dan Galizia, is assigned to water, wastewater, and drainage. 00:28:33.480 --> 00:28:36.360 And then Lauren Price is assigned to DME. 00:28:36.360 --> 00:28:45.280 We do have one vacancy that we're working to fill, and that analyst is a support role for all of the utilities. 00:28:45.280 --> 00:28:53.160 Our 2022-23 budget cycle in March, we kicked off the budget from March to May. 00:28:53.160 --> 00:28:57.960 The budget continued to develop, and we're planning that still. 00:28:57.960 --> 00:29:04.200 June and July, we'll be sharing the budgets with you all and city council. 00:29:04.200 --> 00:29:07.200 Our budget workshop with city council is in August. 00:29:07.200 --> 00:29:15.200 Our public hearings are in September, and the budget adoption is also in September. 00:29:15.200 --> 00:29:18.240 This is a high-level overview of our budget calendar. 00:29:18.240 --> 00:29:20.280 As you can see, there are two different tracks. 00:29:20.280 --> 00:29:26.240 The first track is the CIP budget, and on the right is the operating budget calendar. 00:29:26.240 --> 00:29:29.800 We've come to a point now where those are lining back up. 00:29:29.800 --> 00:29:35.280 So from May to July, we'll be presenting those to you all and to council. 00:29:35.280 --> 00:29:46.400 And then, again, in August 6th is the budget workshop followed by the public hearings and adoption in September. 00:29:46.400 --> 00:29:51.480 So our financial assumptions, all of the utilities share a couple of common assumptions. 00:29:51.480 --> 00:29:55.400 One being that there's consistent growth across all the utilities. 00:29:55.400 --> 00:30:01.400 The second is that the Hunter Coal development is accounted for beginning in 2024. 00:30:01.400 --> 00:30:10.120 The solid waste forecast is based on customer accounts, the tonnage that's coming into the landfill and the service frequency. 00:30:10.120 --> 00:30:16.000 And staff plans to discuss the wholesale contracts with you all in the coming weeks. 00:30:16.000 --> 00:30:20.440 For water, wastewater, that's a volume-based forecast. 00:30:20.440 --> 00:30:24.840 We continue to utilize the impact fee funding to revenue fund projects. 00:30:24.840 --> 00:30:30.720 And the Lake Ray Roberts plant expansion is accounted for beginning in 2028. 00:30:30.720 --> 00:30:39.440 Finally, electric is a forecast based on retail sales and megawatt hours or MWH. 00:30:39.440 --> 00:30:42.640 This is the solid waste forecast. 00:30:42.640 --> 00:30:44.480 There are four different lines. 00:30:44.480 --> 00:30:47.680 The blue line is the residential customer count. 00:30:47.680 --> 00:30:52.440 The yellow line and the gray line are the pickup counts. 00:30:52.440 --> 00:31:00.040 And then the purple line is the landfill transaction count. 00:31:00.040 --> 00:31:03.160 This is the water wastewater growth projection. 00:31:03.160 --> 00:31:05.840 The yellow line is our drainage projection. 00:31:05.840 --> 00:31:09.120 It stays flat, as you can see. 00:31:09.120 --> 00:31:11.640 The blue line is the water wastewater. 00:31:11.640 --> 00:31:15.920 We're averaging a 2% growth up to 23. 00:31:15.920 --> 00:31:20.520 And then we increase to 3.4 for the Hunter Coal Ranch. 00:31:20.520 --> 00:31:29.040 After that, it jumps up to 3.85, and then it normalizes at that standard growth rate. 00:31:29.040 --> 00:31:32.680 This slide shows our water production based on what we've budgeted. 00:31:32.680 --> 00:31:35.000 So the blue line is the budget. 00:31:35.000 --> 00:31:37.600 The red line is where we currently are. 00:31:37.600 --> 00:31:43.280 So we're staying right there with our budget. 00:31:43.280 --> 00:31:46.280 This is the water demand slide. 00:31:46.280 --> 00:31:49.920 So the orange line shows the total growth. 00:31:49.920 --> 00:31:54.120 That black line shows the expansion plans in the future. 00:31:54.120 --> 00:31:59.560 So we're staying right above that growth as we plan to continue to expand. 00:31:59.560 --> 00:32:03.840 This is our electric forecast. 00:32:03.840 --> 00:32:07.280 These are in the megawatt hours. 00:32:07.280 --> 00:32:11.840 This includes residential service and general service. 00:32:11.840 --> 00:32:17.080 The 2023 numbers are highlighted there in the middle of the table. 00:32:17.080 --> 00:32:23.480 And this is the same information in graph format. 00:32:23.480 --> 00:32:26.520 And with that, I'll take any questions. 00:32:26.520 --> 00:32:28.960 >> Thank you, Chair. 00:32:28.960 --> 00:32:32.680 Go back to one -- yeah. 00:32:32.680 --> 00:32:34.160 Right there. 00:32:34.160 --> 00:32:41.660 On these electrical forecasts, are you factoring in any solar panel usage with that? 00:32:41.660 --> 00:32:43.200 With the residential land commercial? 00:32:43.200 --> 00:32:45.760 >> Tony, can you help with that? 00:32:45.760 --> 00:32:49.800 >> Yeah, so residential right now makes up about 7 megawatts. 00:32:49.800 --> 00:32:53.240 So it's not a huge factor, to be honest with you. 00:32:53.240 --> 00:32:58.000 I think once we start getting into the, you know, 30 or 40, you know, kind of megawatts 00:32:58.000 --> 00:32:59.000 then potentially. 00:32:59.000 --> 00:33:02.520 But at this point, I would say it's very, very minimal. 00:33:02.520 --> 00:33:05.440 It's probably within kind of a margin of error. 00:33:05.440 --> 00:33:08.200 So I would say probably doesn't -- isn't included here. 00:33:08.200 --> 00:33:09.200 >> Okay. 00:33:09.200 --> 00:33:11.680 But you're not anticipating growth in that, especially with commercial? 00:33:11.680 --> 00:33:12.680 >> No, absolutely. 00:33:12.680 --> 00:33:15.640 We fully anticipate growth, and we see that every single year. 00:33:15.640 --> 00:33:16.640 >> With solar? 00:33:16.640 --> 00:33:17.640 >> Yes, sir. 00:33:17.640 --> 00:33:20.560 And we continue to incentivize it both through our rates and also through the rebate that 00:33:20.560 --> 00:33:21.560 we have. 00:33:21.560 --> 00:33:23.320 So that will continue to grow. 00:33:23.320 --> 00:33:24.320 >> Okay. 00:33:24.320 --> 00:33:25.320 Thanks, Tony. 00:33:25.320 --> 00:33:26.320 >> Yes, sir. 00:33:26.320 --> 00:33:28.720 >> I also have a question related to this particular chart. 00:33:28.720 --> 00:33:35.440 I noticed that the general service forecast appeared to be falling rather than increasing. 00:33:35.440 --> 00:33:38.720 And I was curious about that if there was a particular reason for it. 00:33:38.720 --> 00:33:39.720 >> Yeah. 00:33:39.720 --> 00:33:49.680 Let me see if Jose -- Jose Gaitan and our EMO can come up here and maybe speak to that 00:33:49.680 --> 00:33:54.200 question. 00:33:54.200 --> 00:33:57.880 >> So my name is Jose Gaitan, a manager of analytics. 00:33:57.880 --> 00:34:00.360 Can you repeat the question, please? 00:34:00.360 --> 00:34:02.800 Can you repeat the question? 00:34:02.800 --> 00:34:03.800 >> I was just curious. 00:34:03.800 --> 00:34:12.280 It seemed this general service number, it's at 744 in 2019, it falls to 718, 721. 00:34:12.280 --> 00:34:16.360 It doesn't -- I was just curious about where those numbers came from and why it appeared 00:34:16.360 --> 00:34:17.360 to be falling. 00:34:17.360 --> 00:34:18.360 >> Sure. 00:34:18.360 --> 00:34:20.360 There are anomalies in the weather pattern. 00:34:20.360 --> 00:34:26.760 Some years you have hotter summers, which leads to higher consumption of power. 00:34:26.760 --> 00:34:31.880 And then we have anomalies like 75 degrees in May. 00:34:31.880 --> 00:34:37.200 So I'll take it where I can, but typically it's all weather related. 00:34:37.200 --> 00:34:42.240 And so we try to forecast going forward based on a normal weather pattern, but obviously 00:34:42.240 --> 00:34:44.960 there's deviations from that normal. 00:34:44.960 --> 00:34:51.760 So the addition of hunter coal ranch developments is going to add an awful lot of load, and 00:34:51.760 --> 00:34:54.680 I don't see a huge jump in the number there anywhere, so -- 00:34:54.680 --> 00:34:55.680 >> Correct. 00:34:55.680 --> 00:35:01.480 Yeah, and it's hard to predict how much growth we'll see based on demand for residential 00:35:01.480 --> 00:35:02.480 homes, right? 00:35:02.480 --> 00:35:09.920 So it's there, obviously, but how quickly will it come on and, you know, how much response 00:35:09.920 --> 00:35:14.600 for demand in the housing will there be, which will lead to overall demand? 00:35:14.600 --> 00:35:19.840 So that's kind of difficult to estimate, but we are in the works of trying to get our hands 00:35:19.840 --> 00:35:23.240 around what to expect in the near term. 00:35:23.240 --> 00:35:27.400 >> Yeah, Mr. Robbeck, what I'd say -- remember, you know, hunter coal ranch, the full build-out 00:35:27.400 --> 00:35:29.780 is over 30 years as well, right? 00:35:29.780 --> 00:35:34.600 And we don't serve all of the development options, so the majority of it, but again, 00:35:34.600 --> 00:35:36.240 that's a 30-year build-out. 00:35:36.240 --> 00:35:41.560 So on an annual basis, you know, the changes are going to be very minimal. 00:35:41.560 --> 00:35:43.840 >> I did not realize the build-out was that long. 00:35:43.840 --> 00:35:44.840 >> Yes, sir. 00:35:44.840 --> 00:35:45.840 >> Okay. 00:35:45.840 --> 00:35:46.840 Well, good to know. 00:35:46.840 --> 00:35:47.840 Thank you. 00:35:47.840 --> 00:35:48.840 >> Yes, sir. 00:35:48.840 --> 00:35:49.840 >> Any other questions? 00:35:49.840 --> 00:35:50.840 All right. 00:35:50.840 --> 00:35:51.840 Thank you. 00:35:51.840 --> 00:35:52.840 >> Good job. 00:35:52.840 --> 00:35:53.840 >> All right. 00:35:53.840 --> 00:35:58.680 It is 938. 00:35:58.680 --> 00:36:11.840 Do we have a motion to adjourn? 00:36:11.840 --> 00:36:13.760 >> Mr. Beck, we are adjourned.