1 00:00:00,000 --> 00:00:03,379 Utility board city of Denton. My name is Lily a binem and I 2 00:00:03,379 --> 00:00:05,719 'd like to call the meeting to order and 3 00:00:06,599 --> 00:00:08,599 the first 4 00:00:08,759 --> 00:00:10,759 item on the agenda 5 00:00:10,800 --> 00:00:13,640 today is to elect a 6 00:00:15,000 --> 00:00:19,350 Chair a chair pro tem for the meeting in the absence of 7 00:00:19,350 --> 00:00:23,359 Susan and Brendan who are out of town today 8 00:00:24,519 --> 00:00:26,519 So if I could have any nominations 9 00:00:30,000 --> 00:00:32,000 The chair pro tem, excuse me 10 00:00:32,920 --> 00:00:34,920 I'll second 11 00:00:35,039 --> 00:00:39,039 All in favor. All right any discussion 12 00:00:42,399 --> 00:00:45,000 Okay, all right then we move forward 13 00:01:00,000 --> 00:01:02,000 All 14 00:01:15,079 --> 00:01:17,079 Right, we'd like to start the 15 00:01:17,120 --> 00:01:20,180 The evening with moving a couple of items. We'd like to 16 00:01:20,180 --> 00:01:20,799 move the closed 17 00:01:21,439 --> 00:01:23,680 meeting to the end of the agenda and 18 00:01:24,200 --> 00:01:27,719 Bring forward the items on the consent agenda first 19 00:01:28,799 --> 00:01:31,239 So if we could move on to that 20 00:01:37,920 --> 00:01:38,060 Are there any questions about any of the items on the 21 00:01:38,060 --> 00:01:44,489 consent agenda either a or B that we would like to pull 22 00:01:44,489 --> 00:01:45,040 back 23 00:01:46,040 --> 00:01:48,040 like to pull item a 24 00:01:50,480 --> 00:01:52,480 Anyone else 25 00:01:53,120 --> 00:01:56,000 All right, well so we'll go forward and 26 00:01:57,719 --> 00:01:59,719 Pull item a 27 00:02:04,000 --> 00:02:06,000 And item a is 28 00:02:12,000 --> 00:02:14,909 Charlie would you like a do you have a question? Yeah, I 29 00:02:14,909 --> 00:02:15,800 have a question 30 00:02:16,159 --> 00:02:20,340 We have an existing contract with this firm. We did and I 31 00:02:20,340 --> 00:02:23,379 guess my question is why are we not amending that as 32 00:02:23,379 --> 00:02:24,120 opposed to? 33 00:02:25,680 --> 00:02:27,680 awarding a new contract 34 00:02:28,719 --> 00:02:29,840 I 35 00:02:29,840 --> 00:02:32,530 Think procedurally this is the way we would handle a 36 00:02:32,530 --> 00:02:34,680 situation like this where we still have 37 00:02:35,800 --> 00:02:37,830 Work that is required to be completed. These are 38 00:02:37,830 --> 00:02:41,159 professional engineers that it would be very difficult for 39 00:02:41,159 --> 00:02:42,240 others to step in 40 00:02:42,400 --> 00:02:44,759 so their contract has expired and 41 00:02:45,199 --> 00:02:47,199 We're looking to just 42 00:02:47,520 --> 00:02:50,259 Almost expire to carry it forward until we can go out with 43 00:02:50,259 --> 00:02:53,159 another competitive book here man and replace them 44 00:02:53,919 --> 00:02:55,080 I 45 00:02:55,080 --> 00:02:57,479 Know this is not your question, but Chuck brought some show 46 00:02:57,479 --> 00:02:57,919 -and-tell 47 00:03:01,080 --> 00:03:03,360 I guess the other question is how much have we expanded on 48 00:03:03,360 --> 00:03:05,199 this contract already? 49 00:03:24,400 --> 00:03:27,879 We've expended two million three hundred and six thousand 50 00:03:27,879 --> 00:03:29,759 one hundred eighty eight dollars and nineteen cents 51 00:03:37,479 --> 00:03:39,479 That's all the questions 52 00:03:44,159 --> 00:03:47,099 All right, well then we would like to call for a motion 53 00:03:47,099 --> 00:03:50,180 with the kids consent agenda items of Charlie's okay with 54 00:03:50,180 --> 00:03:50,919 moving forward 55 00:03:54,400 --> 00:03:56,400 Oh 56 00:03:59,639 --> 00:04:01,960 The majority of this cost is transmission cost 57 00:04:02,879 --> 00:04:05,909 There is some distribution because when we do check out in 58 00:04:05,909 --> 00:04:08,680 substations, we check out the distribution as well as the 59 00:04:08,680 --> 00:04:09,439 transmission 60 00:04:09,919 --> 00:04:12,139 That's commissioning when we build a new station or 61 00:04:12,139 --> 00:04:12,719 whatever 62 00:04:13,479 --> 00:04:16,149 Or when we do periodic testing, we also test the 63 00:04:16,149 --> 00:04:18,120 distribution. So there's some cost in there 64 00:04:18,120 --> 00:04:22,170 But the large majority of pardon there's some costs that 65 00:04:22,170 --> 00:04:24,360 won't be covered under T costs. That's correct 66 00:04:24,399 --> 00:04:27,540 But it's a pretty small percentage probably in the under 10 67 00:04:27,540 --> 00:04:27,959 % 68 00:04:30,120 --> 00:04:36,240 Okay, thank you any other questions regarding number a 69 00:04:38,079 --> 00:04:40,079 All right, so I'd like to 70 00:04:41,279 --> 00:04:46,189 See if I could get a motion to approve consent agenda items 71 00:04:46,189 --> 00:04:46,920 a and B 72 00:04:48,240 --> 00:04:50,079 So moved 73 00:04:50,079 --> 00:04:52,759 second second any discussion 74 00:04:54,959 --> 00:04:58,240 All right, so motion carries motion carries 75 00:05:02,639 --> 00:05:04,399 Sorry 76 00:05:04,399 --> 00:05:08,879 All right. So to vote say aye if you agree. I 77 00:05:10,120 --> 00:05:12,120 May same sign 78 00:05:12,720 --> 00:05:16,170 All right, so the motion carries and we will move into 79 00:05:16,170 --> 00:05:17,399 closed session 80 00:05:23,560 --> 00:05:28,389 We choose myself from a since it's the UNT, thank you. I 81 00:05:28,389 --> 00:05:31,639 appreciate that. Yes. So do we have a quorum new? 82 00:05:33,000 --> 00:05:35,000 Do we have a core? 83 00:05:38,480 --> 00:05:40,480 All right, we're back for 84 00:05:42,079 --> 00:05:44,360 Items for individual consideration and 85 00:05:45,319 --> 00:05:48,439 If you will take a look at number a consider approval of 86 00:05:48,439 --> 00:05:51,889 the Public Utility Board meeting minutes of September the 87 00:05:51,889 --> 00:05:53,000 10th 2018 88 00:05:53,759 --> 00:05:55,759 There's some people who want to be in here 89 00:06:07,040 --> 00:06:09,040 Yeah, I didn't see any out there 90 00:06:12,160 --> 00:06:14,160 Okay, all right, thanks Billy 91 00:06:14,759 --> 00:06:17,459 All right. So we'd like to consider approval of the Public 92 00:06:17,459 --> 00:06:20,879 Utility Board minutes of September 10th 2018 93 00:06:22,759 --> 00:06:24,759 Any 94 00:06:25,560 --> 00:06:28,480 Changes or anything that needs to be made to the minutes 95 00:06:28,480 --> 00:06:30,519 well in the version I'm reading 96 00:06:31,160 --> 00:06:33,560 item H in the consent agenda 97 00:06:34,839 --> 00:06:38,259 The introductory portion of that is incorrect 98 00:06:40,720 --> 00:06:44,160 To recopy of item G instead of the correct item H 99 00:06:50,959 --> 00:06:52,959 Because I wasn't here I had to read that 100 00:07:00,160 --> 00:07:05,680 All right, any other changes all right, can I have an a 101 00:07:05,680 --> 00:07:07,560 move for approval 102 00:07:09,079 --> 00:07:12,040 Move to be approval as amended as amended. Mm-hmm 103 00:07:14,720 --> 00:07:16,720 All in favor say aye 104 00:07:17,399 --> 00:07:19,399 Any opposed same sign? 105 00:07:19,839 --> 00:07:23,920 All right, they are approved and then we'll move on to 106 00:07:25,120 --> 00:07:28,500 B which is to consider recommending adoption of an 107 00:07:28,500 --> 00:07:31,689 ordinance of the City of Denton authorizing the city 108 00:07:31,689 --> 00:07:32,639 manager or designee 109 00:07:33,040 --> 00:07:35,040 to execute a physical gas 110 00:07:36,240 --> 00:07:39,620 Transaction confirmation for the purchase of natural gas 111 00:07:39,620 --> 00:07:42,810 under the terms and conditions of base contract for the 112 00:07:42,810 --> 00:07:44,579 purchase and sale of natural gas 113 00:07:44,759 --> 00:07:47,519 with enterprise products operating LLC 114 00:07:48,040 --> 00:07:51,040 Providing for the expenditure of funds and providing for an 115 00:07:51,040 --> 00:07:51,879 effective date 116 00:07:54,439 --> 00:07:57,879 Thank you. Good evening George Morrow general manager of DM 117 00:07:57,879 --> 00:07:59,360 E. I'm before you tonight 118 00:08:00,399 --> 00:08:05,160 Asking for a recommendation to approve and consider a 119 00:08:05,160 --> 00:08:08,959 proposed natural gas contract for the Denton Energy Center 120 00:08:11,360 --> 00:08:15,209 The background is our current gas supply contract expires 121 00:08:15,209 --> 00:08:16,759 September 30th and 122 00:08:17,399 --> 00:08:21,579 Staff has negotiated a new business arrangement to replace 123 00:08:21,579 --> 00:08:23,560 this expiring deal 124 00:08:24,560 --> 00:08:26,560 that contract will be with 125 00:08:28,360 --> 00:08:32,600 Enterprise products operating Inc as as the chair indicated 126 00:08:32,600 --> 00:08:32,799 and 127 00:08:34,840 --> 00:08:36,840 It's designed to be 128 00:08:37,600 --> 00:08:40,720 Seamless to move from one arrangement to the other 129 00:08:41,600 --> 00:08:44,850 The contract is made pursuant to a naysbees agreement that 130 00:08:44,850 --> 00:08:48,679 has was previously approved with Enterprise the naysbee 131 00:08:48,679 --> 00:08:49,159 agreement 132 00:08:49,399 --> 00:08:51,399 provides the boilerplate for 133 00:08:52,360 --> 00:08:54,360 for the transaction with 134 00:08:55,759 --> 00:08:57,789 What we're asking you to approve today is what's called a 135 00:08:57,789 --> 00:09:01,549 confirmation agreement. It's just the business terms for 136 00:09:01,549 --> 00:09:03,019 the exact transaction 137 00:09:04,440 --> 00:09:06,440 And 138 00:09:06,519 --> 00:09:08,519 Open for questions. I 139 00:09:09,320 --> 00:09:11,440 I'm limited in what I can say tonight 140 00:09:13,320 --> 00:09:15,320 Any questions 141 00:09:17,200 --> 00:09:22,100 All right without any questions would like to move for 142 00:09:22,100 --> 00:09:22,879 approval 143 00:09:24,480 --> 00:09:26,759 Make a motion to approve. Excuse me. Thank you 144 00:09:29,759 --> 00:09:31,759 All right 145 00:09:32,799 --> 00:09:34,799 Any discussion 146 00:09:36,200 --> 00:09:38,000 All right then 147 00:09:38,000 --> 00:09:40,000 All in favor say aye 148 00:09:41,320 --> 00:09:43,480 Any dissent same sign 149 00:09:45,159 --> 00:09:47,159 Motion carries. Thank you very much 150 00:09:50,440 --> 00:09:54,830 All right, and now we'll move on to the ACM update from 151 00:09:54,830 --> 00:09:55,480 Kenny 152 00:10:01,399 --> 00:10:05,779 The first item is the an item for the 2018 EPA 153 00:10:06,639 --> 00:10:08,639 CMOM conference 154 00:10:09,320 --> 00:10:12,580 Those the CMOM stands for capacity management operation and 155 00:10:12,580 --> 00:10:13,200 maintenance 156 00:10:13,200 --> 00:10:18,110 This was held on August 20th the 21st in Austin and it was 157 00:10:18,110 --> 00:10:19,360 one of two cities 158 00:10:19,360 --> 00:10:22,450 It was featured in an indicated presentation as a good 159 00:10:22,450 --> 00:10:25,000 example of how these systems are put together 160 00:10:25,600 --> 00:10:29,200 So wanted to share that it was it was a good honor to to be 161 00:10:30,159 --> 00:10:33,480 Charged of that sort of thing for the city of Denton 162 00:10:33,919 --> 00:10:38,120 That is done through PS Aurora shop on the wastewater side 163 00:10:38,320 --> 00:10:41,720 There are a number of employees that are involved with the 164 00:10:41,720 --> 00:10:42,779 with the system 165 00:10:43,840 --> 00:10:46,919 Tyler Dawson is one of the one of the key players as well 166 00:10:46,919 --> 00:10:50,450 and it's basically just a type of asset management system 167 00:10:50,450 --> 00:10:51,559 that allows us to 168 00:10:52,279 --> 00:10:54,279 have a better sense of how our 169 00:10:55,159 --> 00:10:58,600 Wastewater system operates the true condition of the pie 170 00:11:01,480 --> 00:11:05,639 The the the true condition of the of the pipes and 171 00:11:06,600 --> 00:11:09,559 through camera technology instead of just through 172 00:11:10,360 --> 00:11:11,720 age of asset 173 00:11:11,720 --> 00:11:14,820 So it's a it's a way to kind of optimize our system that 174 00:11:14,820 --> 00:11:18,600 minimizes risk and it doesn't is intended to prevent us 175 00:11:18,600 --> 00:11:19,600 from expending 176 00:11:20,039 --> 00:11:24,960 capital just based on a lifecycle asset only so some some 177 00:11:24,960 --> 00:11:27,759 you know lifecycle assets are typically averages and 178 00:11:28,639 --> 00:11:32,019 And some assets you can get a much longer life out of some 179 00:11:32,019 --> 00:11:32,720 you can't get as much 180 00:11:32,720 --> 00:11:35,220 So we're just trying to right-size the capital so to speak 181 00:11:35,220 --> 00:11:36,279 through that program 182 00:11:42,080 --> 00:11:45,000 The the second item is the liquid oxygen 183 00:11:45,879 --> 00:11:48,669 Proposal information that mr. Vinnie and asked for the last 184 00:11:48,669 --> 00:11:52,360 time the the exceptions are mainly related to 185 00:11:53,720 --> 00:11:55,929 The inability to come to terms on liquidated damages and 186 00:11:55,929 --> 00:11:57,120 indemnification 187 00:11:57,639 --> 00:11:59,879 So I wanted to provide that item 188 00:12:00,759 --> 00:12:05,240 And the future other two items are just the future public 189 00:12:05,240 --> 00:12:07,059 utility board agenda item 190 00:12:07,059 --> 00:12:10,990 I would encourage everyone to look forward to the October 8 191 00:12:10,990 --> 00:12:15,120 solid weights waste rate correction strategy discussion 192 00:12:15,120 --> 00:12:17,120 That's going to be a good one 193 00:12:17,399 --> 00:12:21,440 Policy decisions to be made on that and then the only other 194 00:12:21,440 --> 00:12:25,610 item that I have is the public utility board new business 195 00:12:25,610 --> 00:12:25,720 item 196 00:12:25,720 --> 00:12:28,080 both of the items that remain on the list are 197 00:12:28,720 --> 00:12:32,149 Coming from solid waste that miss Parker's request and we 198 00:12:32,149 --> 00:12:35,240 've got intentions to cover those in fall of 2018 199 00:12:35,240 --> 00:12:37,240 So they'll be coming up in the next couple of months 200 00:12:37,679 --> 00:12:39,679 And that's all I have 201 00:12:49,799 --> 00:12:53,320 All right, I would like to see it would like to know if 202 00:12:53,320 --> 00:12:54,679 there are any concluding items 203 00:12:56,320 --> 00:12:57,840 I 204 00:12:57,840 --> 00:13:02,240 Seen none. I'd like to ask for a motion to adjourn 205 00:13:03,639 --> 00:13:05,639 second 206 00:13:05,639 --> 00:13:07,639 so 207 00:13:14,240 --> 00:13:16,240 All right, I'd like to have a motion to vote 208 00:13:18,679 --> 00:13:20,679 Okay, all right 209 00:13:21,679 --> 00:13:23,679 All those in favor of adjourning say aye 210 00:13:25,759 --> 00:13:30,159 Any opposed all right, so we're adjourned. Thank you