Nov 12, 2018 Public Utilities Board on 2018-11-12 9:00 AM

Good morning it's nine o'clock and we have a quorum present and so we'll go ahead and begin the November 12th 2018 public utility board meeting. Our first item is a closed meeting item to discuss and deliberate strategies and opportunities for the city to acquire solar energy and enter into agreements regarding the same including a power purchase agreement with the Samson solar energy LLC and Engie long draw solar LLC. We'll receive a presentation from staff regarding public power competitive and financial matters pertaining to the purchase of solar energy. So with that said we'll convene into a closed meeting. Welcome back again to the public utility board meeting regular meeting. Our first item is the consent agenda. We have three items on our consent agenda consent agenda item A B and C. Would any member like to pull an item for further discussion or clarification? Nobody is interested in pulling an item so can we get a motion for approval of item A B and C for the consent agenda? So moved. Second. We have a motion and a second. Everybody in favor of approving item A B and C of the consent agenda say aye. Aye. Anybody against? Nay. The items A B and C of our consent agenda are approved. The second item are items for individual consideration. Item A is consider approval of the public utility board meetings of October 22nd 2018. These minutes have been distributed in advance and if any member would like to make any changes or recommend any changes please do so. Seeing nobody interested in making any changes do we have a motion to approve these minutes? Second. So we have a motion and a second. Everyone in favor of approval say aye. Those against? Nay. The public utility board meeting minutes of October 22nd 2018 are approved. Item B for individual consideration. Consider recommending adoption of an ordinance of the City of Denton Texas Home Rule Municipality Corporation providing for authorizing and approving the execution of a by the city manager or his designee of a power purchase agreement between Denton and Samson Solar Energy LLC a Delaware limited liability company approving and authorizing the acceptance and approval by the city manager or his designee of guarantees and letters of credit issued on behalf of the Samson Solar to Denton for the behalf for the benefit of Denton. Approving the execution and such other further related documents deemed necessary to effectuate the transactions allowed under this agreement by the city manager his designee which are incident to the related PPA. Good morning board members, chair, George Morrill general manager of DME. I'm very happy to be before you this morning to talk about the a very important solar project that will enable the city to execute and implement its 100% by 2020 renewable plan and this is a core feature of that. The first project I have for your attention is a proposed Samson solar project. This project came to us through an RFP that was issued by the City of New Bronzevilles. We formed form sort of a joint municipal group with four other municipalities. That proposal received a lot of attention. We've gotten quite a few high quality proposals that were made that we could pick and choose from. The project that I'm bringing for you here was one of the two recommended projects that came out of that RFP for us developed by Invenergy. You may recall Invenergy we've had some relations with. They developed the Santa Rita wind project for us that became up in operation in June so that was a that was a good thing. It showed that they're capable of living up to their contractual requirements. This project's located in Northeast Texas. We like that compared to some of other solar projects that we're bringing you that would be in the western part of Texas. It gives us some diversity in supply. It will be delivered almost to Denton at the North Hub and the projected in-service date of this project is June 2022. It's a 15-year project. Very very attractively priced. That's where the projects we're bringing to you today. We'll be buying proposing to buy 75 megawatts and partnering with Garland and Bryan in this particular activity. I was going to mention that for folks that are interested out there watching today there's a redacted version of the power purchase agreement on the website as part of this agenda item. We worked hard with the proposer to get them to accept the fact that hey you know we were we're for transparency in Denton and we want to make as much available to the public as possible. There's certain competitive features of those proposals that would be problematic for them particularly since like this project they're still trying to sell some additional megawatts over and above us and they really don't want to give up some of the key business features. But we did put if you look in there there's a there's a lot of information that is available for those that want to see what we're doing here. So here to recommend that we adopt an ordinance to approve the renewable energy purchase agreement with Samson Solar Energy and available for any questions or comments. Any questions? Right so congestion is typically what happens between a point of delivery and our local service area. So this one has a very good positive congestion and ensures that we can get delivery during those really tough times in the summer. Whereas sometimes in the West you know you it might be a little questionable what the cost and/or availability of power is during high demand and so forth. So this gives us that little bit of extra diversity. Do we have a motion? Move. Second? Second. We have a motion and a second to consider Rick to adopt the ordinance for this purchase power agreement. All those in favor say aye. Aye. Those against nay. The motion passes. Thank you very much. Yes. Appreciate that. Item C, the next item on for individual consideration is to consider recommending adoption of an ordinance of the City Council of the City of Denton a Texas Home Rule Municipal Corporation providing for authorizing and approving the execution by the city manager or his designee of a power purchase agreement between Denton and Engie Long Draw Solar LLC a Delaware limited liability company approving and authorizing the acceptance and approval by the city manager or his designee of guarantees and letters of credit issued on behalf of Long Draw Solar further securing the obligations of Long Draw Solar to Denton for the benefit of Denton. Approving the execution of such other and further related documents deemed necessary to effectuate the transactions allowed under this agreement by the city manager or his designee which are incident to or related to the PPA. Thank you again. George Morrow with DME bringing forward the second solar project that we're asking for your recommendation to approve today again as part of a very comprehensive RFP that we partnered with for the municipalities to receive proposals for solar energy and we had a very diverse mix as this slide shows we had proposals from you know 60 different counties more than 100 projects from relatively modest size up to a very large size 500 megawatts different contract terms and different contract operation dates so we're recommending in addition to the solar project that came to you earlier in your agenda this one from Engie development called Long Draw Solar it's in West Texas again West Texas has a has a very good solar profile so we're looking to get a lot of energy from this project we will take delivery at the project itself and we'll be responsible for moving that to our location but we're actually very good at making that happen and to dealing with what we talked about earlier which was congestion this is a will be in service earlier in June of 2020 and will fill a critical need that we have in that time frame for for power 15 year term competitive fixed price which was very attractive and we're partnering again in this particular project with New Bronzeville's Garland and Kerrville and we're taking 75 megawatts of that particular project so similarly we're asking for your recommendation to adopt an ordinance to approve the purchase agreement with Engie Long Draw Solar LLC. I'm here to answer any questions if you have any. Anybody have any questions? Questions? Do we have a motion on the floor to consider adoption? I recommend approval. Second. We have a motion and a second does anybody have any further comments or further discussion? Everybody in favor of approval say aye. Those against, nay. The motion passes. Thank you. Let me let me just mention quickly a pin to that that Denton has issued an RFP for some additional solar and or coastal wind and that's out on our website city's website and we're taking proposals through right now November 20th so if there's folks out there that are interested in selling some additional renewable capacity to us I would point them in that direction and thank you for that. Thank you. So item D is the ACM update. Mr. Vice Chair, members of the board, a couple of things of note there is no meeting on November the 26th due to the Thanksgiving holiday so the only meeting we have for November is today. We'll reconvene to PUB on December the 10th and at that meeting looks based on the calendar looking ahead looks like there will be a work session on the the rubble processing over at solid waste and the building material recovery process as well and we'll also including a packet a a report on the Denton Energy Center performance this past summer as requested by one by Mr. Carroll. Okay so we have a third item additional items for consideration concerning eminent domain. Item A is consider recommending adoption of an ordinance of the City of Denton determining the public use need and necessity for the acquisition of various permanent easements and temporary construction easements generally located along the southbound I-35 service road north of the old right-of-way line of Jim Crystal Road running north approximately 300 feet then east under I-35 to the northwest corner of lot 1 block 4 of the razor branch south addition and being situated in the BBB and CRR survey abstract number 192 BBB mayor's chair good morning my name is Paul Williamson capital projects before you today is a an ordinance that would be a recommendation to City Council to authorize the staff to acquire easements for this particular project water transmission line project crossing scripture street across from scripture street at I-35 over to Jim Crystal we've got various temporary easements and permanent waterline easements in this project ones on the west side of 35 they're just north of the old abandoned Jim scripture right-of-way and then on the east side just north of scripture street so what we're asking for today is a positive recommendation for City Council to authorize staff to acquire these easements any questions I do are any of the easements that we're pursuing they're they're all utility easements but do any of them take possession of the entire property or prevent any of the current uses that the property has well in in the temporary easements are just workspace so those have term limits and they expire once the projects completed the permanent easements encumber the property and then we're asking for waterline easement only you know just for the function of what we're putting in the ground and so you can't there's no vertical construction on a permanent easement so it's it's it it encumbers the property I-35 right-of-way line or that I can't tell from the maps where they're about it or they're well and like in the one on the on the screen here there's in that particular segment I-30 text out has has already gone through with their preliminary schematic and figured out what the future right-of-way is for text dot and these these easements are hanging on the future and what is required to go under 35 then what kind of arrangements do we have to make with this well we have to get a permit from text on to do that it has to be in a in an encased bore you know and so that's that undertaking it will be a steel bore cased bore do you anticipate coming back to us if we're going to proceed with eminent domain proceedings or is this the our only opportunity to see this the this particular recommendation for acquisition which means negotiation and up through filing the lawsuit so if we end up having a file lawsuit on any particular landowner and then there's any negotiations that are associated with that lawsuit and those are the things that would come back through PB and City Council okay thank you any additional questions do we have a motion a second so we have a motion and a second assuming to can to approve move to everybody all members in favor aye aye anyone against nay motion approved is approved item B seems to be a similar item consider recommendation recommending adoption of an ordinance of the city of Denton determining the public use need and necessity for the acquisition of various permanent easements and temporary construction easements generally located along the southbound I-35 service road from US 380 south to south south to the south lot line of lot one block two of the caliber collision addition running due east to the northbound I-35 service road along the western and northern boundaries of lot 10 R - to block a razor ranch town center addition with US 380 being the northern boundary line and being situated in the BBB and CRR survey abstract number 192 thank you very similar project just located a little bit north of the scripture 35 crossing this is just south of 380 again the water transmission line project the easements depicted here mostly in this particular project their temporary construction easements but they're all affecting commercial property tracks and this is the quick trip located at the southwest corner of University Drive and 380 or I-35 this is where the caliber collision addition as well just south of the quick trip another track all temporaries and then this is this tracks located at the southeast corner of I-35 and US 380 it's one of the razor ranch town center tracks and this one's actually got quite a bit of existing and then temporary and proposed permanent again what we're asking for today's is a recommendation to City Council for an ordinance authorizing staff to acquire these easements either through negotiation or if necessary through imminent domain any questions do we have a motion recommend approval second have a motion and a second to recommend approval any further discussion or comments all this in favor of approving aye aye all those against nay motion is approved we have a third item item C consider recommending adoption of an ordinance of the City of Denton determining the public use need and necessity for the acquisition of various permanent easements and temporary construction easements generally located along John Payne Road north of Park Place Drive and along all red road from John Payne to South Bonnie Bray Street and being situated in the BBB and CRR survey abstract numbers 158 and 159 City and County of Denton Texas thank you again another another waterline project that we're pursuing down in the southwest quadrant of Denton it's a got several tracks there's actually one property owner but there's three distinct property tracks because of the road the way the roads are situated out there this one that's highlighted in red it affects a tract owned by Petrus Development again another part part two here is another tract permanent and temporary easements we're seeking to acquire from this landowner it's part three again owned by the same landowner on the north side of all red road so these are the three waterline segments that we're seeking to acquire easements and the again this this recommendation of this ordinance will give staff the ability to enter into negotiations with the landowner if those negotiations are unsuccessful we can acquire them through a domain if necessary any questions on this one I forget what red stands for is this a permanent or a construction temporary well actually in this particular case all three of these segments involve permanent waterline easement and temporary construction easement any additional questions do we have a motion move to approve a motion to approve do we have a second second we have a motion to approve and a second any further discussion or comments all those in favor say aye aye all those against nay item C is approved move on to concluding items under section 551.042 of the Texas Open Meeting Acts will respond to inquiries from members of the Public Utility Board or the public with specific factual information or recitation of policy or accept a proposal to place the matter on the agenda for an upcoming meeting anybody have any items they'd like to put on an agenda or ask these guys I'm curious about if there's been any work on getting the dumpsters off of West Oak I know that staff is working on the Muse project up by the square and I was hoping or wondering if they could maybe extend that project up Oak or around UNT I know there's ADA compliance issues all up and down Oak Street with those dumpsters that have been there for many years and it might be nice to sort of fold that in to the Muse project maybe or it could be a separate investigation but we need to get the dumpsters off of the sidewalks around UNT or those older older apartment complexes still have dumpsters on the sidewalks is there any factual information that could be presented to us we'll certainly take a look into that and hold that into where we're in active discussions regarding the new streets to provide some kind of design standards that what we hope are you know something that we can repeat in other areas so we'll have our staff investigate that and pull that into the project thank you certainly thank you that concludes all of the agenda items and our concluding items I believe we need a motion to adjourn I can't make a motion I don't think we have a motion and a second second all those in favor thank you everybody thank you