WEBVTT 00:00:00.000 --> 00:00:11.640 Good morning it's nine o'clock and we have a quorum present and so we'll go 00:00:11.640 --> 00:00:18.760 ahead and begin the November 12th 2018 public utility board meeting. Our first 00:00:18.760 --> 00:00:23.200 item is a closed meeting item to discuss and deliberate strategies and 00:00:23.200 --> 00:00:28.000 opportunities for the city to acquire solar energy and enter into agreements 00:00:28.000 --> 00:00:32.020 regarding the same including a power purchase agreement with the Samson 00:00:32.020 --> 00:00:38.920 solar energy LLC and Engie long draw solar LLC. We'll receive a presentation 00:00:38.920 --> 00:00:42.580 from staff regarding public power competitive and financial matters 00:00:42.580 --> 00:00:47.120 pertaining to the purchase of solar energy. So with that said we'll convene 00:00:47.120 --> 00:00:50.240 into a closed meeting. 00:00:53.640 --> 00:00:59.480 Welcome back again to the public utility board meeting regular meeting. Our first 00:00:59.480 --> 00:01:05.480 item is the consent agenda. We have three items on our consent agenda 00:01:05.480 --> 00:01:11.440 consent agenda item A B and C. Would any member like to pull an item for further 00:01:11.440 --> 00:01:17.800 discussion or clarification? Nobody is interested in pulling an item so can we 00:01:17.800 --> 00:01:24.160 get a motion for approval of item A B and C for the consent agenda? So moved. 00:01:24.160 --> 00:01:31.080 Second. We have a motion and a second. Everybody in favor of approving item A 00:01:31.080 --> 00:01:40.960 B and C of the consent agenda say aye. Aye. Anybody against? Nay. The items A B and C 00:01:40.960 --> 00:01:48.240 of our consent agenda are approved. The second item are items for individual 00:01:48.240 --> 00:01:53.280 consideration. Item A is consider approval of the public utility board 00:01:53.280 --> 00:01:58.880 meetings of October 22nd 2018. These minutes have been distributed in advance 00:01:58.880 --> 00:02:07.160 and if any member would like to make any changes or recommend any changes please 00:02:07.160 --> 00:02:14.160 do so. Seeing nobody interested in making any changes do we have a motion to 00:02:14.160 --> 00:02:22.240 approve these minutes? Second. So we have a motion and a second. Everyone in favor 00:02:22.240 --> 00:02:30.640 of approval say aye. Those against? Nay. The public utility board meeting minutes 00:02:30.640 --> 00:02:39.040 of October 22nd 2018 are approved. Item B for individual consideration. Consider 00:02:39.040 --> 00:02:44.480 recommending adoption of an ordinance of the City of Denton Texas Home Rule 00:02:44.480 --> 00:02:50.200 Municipality Corporation providing for authorizing and approving the execution 00:02:50.200 --> 00:02:55.360 of a by the city manager or his designee of a power purchase agreement between 00:02:55.360 --> 00:03:01.080 Denton and Samson Solar Energy LLC a Delaware limited liability company 00:03:01.080 --> 00:03:05.800 approving and authorizing the acceptance and approval by the city manager or his 00:03:05.800 --> 00:03:11.920 designee of guarantees and letters of credit issued on behalf of the Samson 00:03:11.920 --> 00:03:17.000 Solar to Denton for the behalf for the benefit of Denton. Approving the 00:03:17.000 --> 00:03:21.760 execution and such other further related documents deemed necessary to effectuate 00:03:21.760 --> 00:03:25.600 the transactions allowed under this agreement by the city manager his 00:03:25.600 --> 00:03:31.480 designee which are incident to the related PPA. 00:03:31.480 --> 00:03:41.080 Good morning board members, chair, George Morrill general manager of DME. I'm very 00:03:41.080 --> 00:03:47.480 happy to be before you this morning to talk about the a very important solar 00:03:47.480 --> 00:03:54.040 project that will enable the city to execute and implement its 100% by 2020 00:03:54.040 --> 00:03:58.880 renewable plan and this is a core feature of that. The first project I have for 00:03:58.880 --> 00:04:05.520 your attention is a proposed Samson solar project. This project came to us 00:04:05.520 --> 00:04:10.480 through an RFP that was issued by the City of New Bronzevilles. We formed form 00:04:10.480 --> 00:04:16.360 sort of a joint municipal group with four other municipalities. That proposal 00:04:16.360 --> 00:04:22.880 received a lot of attention. We've gotten quite a few high quality proposals that 00:04:22.880 --> 00:04:28.400 were made that we could pick and choose from. The project that I'm bringing for 00:04:28.400 --> 00:04:33.640 you here was one of the two recommended projects that came out of that RFP for 00:04:33.640 --> 00:04:38.760 us developed by Invenergy. You may recall Invenergy we've had some relations 00:04:38.760 --> 00:04:42.560 with. They developed the Santa Rita wind project for us that became up in 00:04:42.560 --> 00:04:46.320 operation in June so that was a that was a good thing. It showed that they're 00:04:46.320 --> 00:04:51.040 capable of living up to their contractual requirements. This project's 00:04:51.040 --> 00:04:57.020 located in Northeast Texas. We like that compared to some of other solar projects 00:04:57.020 --> 00:05:00.480 that we're bringing you that would be in the western part of Texas. It gives us 00:05:00.480 --> 00:05:07.360 some diversity in supply. It will be delivered almost to Denton at the North 00:05:07.360 --> 00:05:14.640 Hub and the projected in-service date of this project is June 2022. It's a 15-year 00:05:14.640 --> 00:05:20.200 project. Very very attractively priced. That's where the projects we're bringing 00:05:20.200 --> 00:05:25.560 to you today. We'll be buying proposing to buy 75 megawatts and partnering with 00:05:25.560 --> 00:05:33.360 Garland and Bryan in this particular activity. I was going to 00:05:33.360 --> 00:05:36.280 mention that for folks that are interested out there watching today 00:05:36.280 --> 00:05:41.440 there's a redacted version of the power purchase agreement on the website as 00:05:41.440 --> 00:05:49.040 part of this agenda item. We worked hard with the proposer to get them to accept 00:05:49.040 --> 00:05:54.880 the fact that hey you know we were we're for transparency in Denton and we want 00:05:54.880 --> 00:05:59.200 to make as much available to the public as possible. There's certain competitive 00:05:59.200 --> 00:06:03.000 features of those proposals that would be problematic for them particularly 00:06:03.000 --> 00:06:06.960 since like this project they're still trying to sell some additional megawatts 00:06:06.960 --> 00:06:10.880 over and above us and they really don't want to give up some of the key business 00:06:10.880 --> 00:06:14.520 features. But we did put if you look in there there's a there's a lot of 00:06:14.520 --> 00:06:19.880 information that is available for those that want to see what we're doing here. 00:06:19.880 --> 00:06:28.840 So here to recommend that we adopt an ordinance to approve the renewable energy 00:06:28.840 --> 00:06:33.200 purchase agreement with Samson Solar Energy and available for any questions 00:06:33.200 --> 00:06:43.960 or comments. Any questions? Right so congestion is typically what happens 00:06:43.960 --> 00:06:48.640 between a point of delivery and our local service area. So this one has a 00:06:48.640 --> 00:06:53.280 very good positive congestion and ensures that we can get delivery during 00:06:53.280 --> 00:06:57.160 those really tough times in the summer. Whereas sometimes in the West you know 00:06:57.160 --> 00:07:02.880 you it might be a little questionable what the cost and/or availability of 00:07:02.880 --> 00:07:07.440 power is during high demand and so forth. So this gives us that little bit of 00:07:07.440 --> 00:07:10.120 extra diversity. 00:07:10.120 --> 00:07:24.720 Do we have a motion? Move. Second? Second. We have a motion and a second to consider 00:07:24.720 --> 00:07:29.840 Rick to adopt the ordinance for this purchase power agreement. All those in 00:07:29.840 --> 00:07:39.840 favor say aye. Aye. Those against nay. The motion passes. Thank you very much. Yes. 00:07:39.840 --> 00:07:48.720 Appreciate that. Item C, the next item on for individual consideration is to 00:07:48.720 --> 00:07:53.200 consider recommending adoption of an ordinance of the City Council of the 00:07:53.200 --> 00:07:57.400 City of Denton a Texas Home Rule Municipal Corporation providing for 00:07:57.400 --> 00:08:03.560 authorizing and approving the execution by the city manager or his designee of 00:08:03.560 --> 00:08:09.520 a power purchase agreement between Denton and Engie Long Draw Solar LLC a 00:08:09.520 --> 00:08:14.720 Delaware limited liability company approving and authorizing the acceptance 00:08:14.720 --> 00:08:20.040 and approval by the city manager or his designee of guarantees and letters of 00:08:20.040 --> 00:08:25.900 credit issued on behalf of Long Draw Solar further securing the obligations 00:08:25.900 --> 00:08:31.040 of Long Draw Solar to Denton for the benefit of Denton. Approving the 00:08:31.040 --> 00:08:35.920 execution of such other and further related documents deemed necessary to 00:08:35.920 --> 00:08:40.560 effectuate the transactions allowed under this agreement by the city manager or 00:08:40.560 --> 00:08:47.640 his designee which are incident to or related to the PPA. Thank you again. 00:08:47.640 --> 00:08:52.440 George Morrow with DME bringing forward the second solar project that we're 00:08:52.440 --> 00:08:58.200 asking for your recommendation to approve today again as part of a very 00:08:58.200 --> 00:09:05.280 comprehensive RFP that we partnered with for the municipalities to receive 00:09:05.280 --> 00:09:11.880 proposals for solar energy and we had a very diverse mix as this slide shows we 00:09:11.880 --> 00:09:17.080 had proposals from you know 60 different counties more than 100 projects from 00:09:17.080 --> 00:09:21.880 relatively modest size up to a very large size 500 megawatts different 00:09:21.880 --> 00:09:28.520 contract terms and different contract operation dates so we're recommending in 00:09:28.520 --> 00:09:33.600 addition to the solar project that came to you earlier in your agenda this one 00:09:33.600 --> 00:09:39.160 from Engie development called Long Draw Solar it's in West Texas again West 00:09:39.160 --> 00:09:44.560 Texas has a has a very good solar profile so we're looking to get a lot of 00:09:44.560 --> 00:09:49.760 energy from this project we will take delivery at the project itself and we'll 00:09:49.760 --> 00:09:54.000 be responsible for moving that to our location but we're actually very good at 00:09:54.000 --> 00:09:58.040 making that happen and to dealing with what we talked about earlier which was 00:09:58.040 --> 00:10:04.520 congestion this is a will be in service earlier in June of 2020 and will fill a 00:10:04.520 --> 00:10:10.240 critical need that we have in that time frame for for power 15 year term 00:10:10.240 --> 00:10:17.440 competitive fixed price which was very attractive and we're partnering again in 00:10:17.440 --> 00:10:22.120 this particular project with New Bronzeville's Garland and Kerrville and 00:10:22.120 --> 00:10:30.500 we're taking 75 megawatts of that particular project so similarly we're 00:10:30.500 --> 00:10:37.280 asking for your recommendation to adopt an ordinance to approve the purchase 00:10:37.280 --> 00:10:43.080 agreement with Engie Long Draw Solar LLC. I'm here to answer any questions if you 00:10:43.080 --> 00:10:47.280 have any. Anybody have any questions? 00:10:47.280 --> 00:10:57.360 Questions? Do we have a motion on the floor to consider adoption? I recommend approval. Second. 00:10:57.360 --> 00:11:01.520 We have a motion and a second does anybody have any further comments or 00:11:01.520 --> 00:11:12.640 further discussion? Everybody in favor of approval say aye. Those against, nay. The 00:11:12.640 --> 00:11:17.240 motion passes. Thank you. Let me let me just mention quickly a pin to that that 00:11:17.240 --> 00:11:23.480 Denton has issued an RFP for some additional solar and or coastal wind and 00:11:23.480 --> 00:11:29.280 that's out on our website city's website and we're taking proposals through right 00:11:29.280 --> 00:11:33.400 now November 20th so if there's folks out there that are interested in selling 00:11:33.400 --> 00:11:38.240 some additional renewable capacity to us I would point them in that direction and 00:11:38.240 --> 00:11:48.680 thank you for that. Thank you. So item D is the ACM update. Mr. Vice Chair, members 00:11:48.680 --> 00:11:53.360 of the board, a couple of things of note there is no meeting on November the 26th 00:11:53.360 --> 00:11:56.680 due to the Thanksgiving holiday so the only meeting we have for November is 00:11:56.680 --> 00:12:01.600 today. We'll reconvene to PUB on December the 10th and at that meeting 00:12:01.600 --> 00:12:08.000 looks based on the calendar looking ahead looks like there will be a work 00:12:08.000 --> 00:12:14.800 session on the the rubble processing over at solid waste and the building 00:12:14.800 --> 00:12:19.960 material recovery process as well and we'll also including a packet a a report 00:12:19.960 --> 00:12:23.840 on the Denton Energy Center performance this past summer as requested by one by 00:12:23.840 --> 00:12:38.720 Mr. Carroll. Okay so we have a third item additional items for consideration 00:12:38.720 --> 00:12:46.520 concerning eminent domain. Item A is consider recommending adoption of an 00:12:46.520 --> 00:12:50.320 ordinance of the City of Denton determining the public use need and 00:12:50.320 --> 00:12:55.280 necessity for the acquisition of various permanent easements and temporary 00:12:55.280 --> 00:13:01.320 construction easements generally located along the southbound I-35 service road 00:13:01.320 --> 00:13:06.320 north of the old right-of-way line of Jim Crystal Road running north 00:13:06.320 --> 00:13:13.000 approximately 300 feet then east under I-35 to the northwest corner of lot 1 00:13:13.000 --> 00:13:19.160 block 4 of the razor branch south addition and being situated in the BBB 00:13:19.160 --> 00:13:25.440 and CRR survey abstract number 192 00:13:25.440 --> 00:13:33.400 BBB mayor's chair good morning my name is Paul Williamson capital projects 00:13:33.400 --> 00:13:39.520 before you today is a an ordinance that would be a recommendation to City 00:13:39.520 --> 00:13:45.560 Council to authorize the staff to acquire easements for this particular 00:13:45.560 --> 00:13:52.560 project water transmission line project crossing scripture street across from 00:13:52.560 --> 00:14:01.280 scripture street at I-35 over to Jim Crystal we've got various temporary 00:14:01.280 --> 00:14:07.960 easements and permanent waterline easements in this project ones on the 00:14:07.960 --> 00:14:13.400 west side of 35 they're just north of the old abandoned Jim scripture right-of-way 00:14:13.400 --> 00:14:18.160 and then on the east side just north of scripture street so what we're asking 00:14:18.160 --> 00:14:23.160 for today is a positive recommendation for City Council to authorize staff to 00:14:23.160 --> 00:14:30.880 acquire these easements any questions 00:14:30.880 --> 00:14:40.160 I do are any of the easements that we're pursuing they're they're all utility 00:14:40.160 --> 00:14:44.800 easements but do any of them take possession of the entire property or 00:14:44.800 --> 00:14:51.040 prevent any of the current uses that the property has well in in the temporary 00:14:51.040 --> 00:14:55.320 easements are just workspace so those have term limits and they expire once 00:14:55.320 --> 00:14:59.600 the projects completed the permanent easements encumber the property and then 00:14:59.600 --> 00:15:03.600 we're asking for waterline easement only you know just for the function of what 00:15:03.600 --> 00:15:08.120 we're putting in the ground and so you can't there's no vertical construction 00:15:08.120 --> 00:15:18.280 on a permanent easement so it's it's it it encumbers the property I-35 right-of-way 00:15:18.280 --> 00:15:23.760 line or that I can't tell from the maps where they're about it or they're well 00:15:23.760 --> 00:15:28.800 and like in the one on the on the screen here there's in that particular segment 00:15:28.800 --> 00:15:32.840 I-30 text out has has already gone through with their preliminary schematic 00:15:32.840 --> 00:15:36.240 and figured out what the future right-of-way is for text dot and these 00:15:36.240 --> 00:15:43.360 these easements are hanging on the future and what is required to go under 00:15:43.360 --> 00:15:48.440 35 then what kind of arrangements do we have to make with this well we have to 00:15:48.440 --> 00:15:54.600 get a permit from text on to do that it has to be in a in an encased bore you 00:15:54.600 --> 00:16:02.120 know and so that's that undertaking it will be a steel bore cased bore 00:16:06.520 --> 00:16:13.520 do you anticipate coming back to us if we're going to proceed with eminent 00:16:13.520 --> 00:16:22.760 domain proceedings or is this the our only opportunity to see this the this 00:16:22.760 --> 00:16:26.400 particular recommendation for acquisition which means negotiation and 00:16:26.400 --> 00:16:30.720 up through filing the lawsuit so if we end up having a file lawsuit on any 00:16:30.720 --> 00:16:34.720 particular landowner and then there's any negotiations that are associated 00:16:34.720 --> 00:16:37.880 with that lawsuit and those are the things that would come back through PB 00:16:37.880 --> 00:16:45.640 and City Council okay thank you any additional questions do we have a 00:16:45.640 --> 00:16:48.080 motion 00:16:48.080 --> 00:16:59.360 a second so we have a motion and a second assuming to can to approve move 00:16:59.360 --> 00:17:10.200 to everybody all members in favor aye aye anyone against nay motion approved 00:17:10.200 --> 00:17:19.080 is approved item B seems to be a similar item consider recommendation 00:17:19.080 --> 00:17:23.000 recommending adoption of an ordinance of the city of Denton determining the 00:17:23.000 --> 00:17:27.400 public use need and necessity for the acquisition of various permanent 00:17:27.400 --> 00:17:31.760 easements and temporary construction easements generally located along the 00:17:31.760 --> 00:17:38.840 southbound I-35 service road from US 380 south to south south to the south lot 00:17:38.840 --> 00:17:44.840 line of lot one block two of the caliber collision addition running due east to 00:17:44.840 --> 00:17:50.360 the northbound I-35 service road along the western and northern boundaries of 00:17:50.360 --> 00:17:58.760 lot 10 R - to block a razor ranch town center addition with US 380 being the 00:17:58.760 --> 00:18:04.080 northern boundary line and being situated in the BBB and CRR survey 00:18:04.080 --> 00:18:12.760 abstract number 192 thank you very similar project just located a little 00:18:12.760 --> 00:18:19.680 bit north of the scripture 35 crossing this is just south of 380 again the 00:18:19.680 --> 00:18:27.200 water transmission line project the easements depicted here mostly in this 00:18:27.200 --> 00:18:30.880 particular project their temporary construction easements but they're all 00:18:30.880 --> 00:18:36.960 affecting commercial property tracks and this is the quick trip located at the 00:18:36.960 --> 00:18:44.600 southwest corner of University Drive and 380 or I-35 this is where the caliber 00:18:44.600 --> 00:18:53.160 collision addition as well just south of the quick trip another track all 00:18:53.160 --> 00:18:59.560 temporaries and then this is this tracks located at the southeast corner of I-35 00:18:59.560 --> 00:19:05.000 and US 380 it's one of the razor ranch town center tracks and this one's 00:19:05.000 --> 00:19:13.160 actually got quite a bit of existing and then temporary and proposed permanent 00:19:13.160 --> 00:19:18.120 again what we're asking for today's is a recommendation to City Council for an 00:19:18.120 --> 00:19:22.040 ordinance authorizing staff to acquire these easements either through 00:19:22.040 --> 00:19:31.760 negotiation or if necessary through imminent domain any questions do we have 00:19:31.760 --> 00:19:38.880 a motion recommend approval second have a motion and a second to recommend 00:19:38.880 --> 00:19:46.440 approval any further discussion or comments all this in favor of approving 00:19:46.440 --> 00:19:59.040 aye aye all those against nay motion is approved we have a third item item C 00:19:59.040 --> 00:20:02.760 consider recommending adoption of an ordinance of the City of Denton 00:20:02.760 --> 00:20:06.920 determining the public use need and necessity for the acquisition of 00:20:06.920 --> 00:20:10.920 various permanent easements and temporary construction easements 00:20:10.920 --> 00:20:17.200 generally located along John Payne Road north of Park Place Drive and along all 00:20:17.200 --> 00:20:23.200 red road from John Payne to South Bonnie Bray Street and being situated in the 00:20:23.200 --> 00:20:33.280 BBB and CRR survey abstract numbers 158 and 159 City and County of Denton Texas 00:20:33.280 --> 00:20:39.000 thank you again another another waterline project that we're pursuing 00:20:39.000 --> 00:20:49.480 down in the southwest quadrant of Denton it's a got several tracks there's 00:20:49.480 --> 00:20:54.560 actually one property owner but there's three distinct property tracks 00:20:54.560 --> 00:21:00.400 because of the road the way the roads are situated out there this one that's 00:21:00.400 --> 00:21:09.280 highlighted in red it affects a tract owned by Petrus Development again another 00:21:09.280 --> 00:21:13.560 part part two here is another tract permanent and temporary easements we're 00:21:13.560 --> 00:21:20.040 seeking to acquire from this landowner it's part three again owned by the same 00:21:20.040 --> 00:21:24.840 landowner on the north side of all red road so these are the three waterline 00:21:24.840 --> 00:21:31.320 segments that we're seeking to acquire easements and the again this this 00:21:31.320 --> 00:21:36.640 recommendation of this ordinance will give staff the ability to enter into 00:21:36.640 --> 00:21:41.480 negotiations with the landowner if those negotiations are unsuccessful we can 00:21:41.480 --> 00:21:48.120 acquire them through a domain if necessary any questions on this one I 00:21:48.120 --> 00:21:51.720 forget what red stands for is this a permanent or a construction temporary 00:21:51.720 --> 00:21:56.040 well actually in this particular case all three of these segments involve 00:21:56.040 --> 00:22:03.320 permanent waterline easement and temporary construction easement any 00:22:03.320 --> 00:22:13.320 additional questions do we have a motion move to approve a motion to approve do 00:22:13.320 --> 00:22:19.080 we have a second second we have a motion to approve and a second any further 00:22:19.080 --> 00:22:28.600 discussion or comments all those in favor say aye aye all those against nay 00:22:28.600 --> 00:22:36.960 item C is approved move on to concluding items under section 551.042 of the 00:22:36.960 --> 00:22:41.760 Texas Open Meeting Acts will respond to inquiries from members of the Public 00:22:41.760 --> 00:22:46.400 Utility Board or the public with specific factual information or 00:22:46.400 --> 00:22:51.500 recitation of policy or accept a proposal to place the matter on the 00:22:51.500 --> 00:22:57.160 agenda for an upcoming meeting anybody have any items they'd like to put on an 00:22:57.160 --> 00:23:06.200 agenda or ask these guys I'm curious about if there's been any work on 00:23:06.200 --> 00:23:11.720 getting the dumpsters off of West Oak I know that staff is working on the Muse 00:23:11.720 --> 00:23:16.960 project up by the square and I was hoping or wondering if they could maybe 00:23:16.960 --> 00:23:25.000 extend that project up Oak or around UNT I know there's ADA compliance issues all 00:23:25.000 --> 00:23:28.160 up and down Oak Street with those dumpsters that have been there for many 00:23:28.160 --> 00:23:34.960 years and it might be nice to sort of fold that in to the Muse project maybe 00:23:34.960 --> 00:23:40.880 or it could be a separate investigation but we need to get the dumpsters off of 00:23:40.880 --> 00:23:45.960 the sidewalks around UNT or those older older apartment complexes still have 00:23:45.960 --> 00:23:51.360 dumpsters on the sidewalks is there any factual information that could be 00:23:51.360 --> 00:23:54.200 presented to us 00:23:54.200 --> 00:24:03.560 we'll certainly take a look into that and hold that into where we're in active 00:24:03.560 --> 00:24:07.400 discussions regarding the new streets to provide some kind of design standards 00:24:07.400 --> 00:24:11.480 that what we hope are you know something that we can repeat in other areas so 00:24:11.480 --> 00:24:15.200 we'll have our staff investigate that and pull that into the project thank you 00:24:15.200 --> 00:24:25.320 certainly thank you that concludes all of the agenda items and our concluding 00:24:25.320 --> 00:24:33.000 items I believe we need a motion to adjourn I can't make a motion I don't 00:24:33.000 --> 00:24:42.000 think we have a motion and a second second all those in favor thank you 00:24:42.000 --> 00:24:45.680 everybody thank you