1 00:00:00,000 --> 00:00:04,440 - Okay, it is nine o'clock and we do have a quorum. 2 00:00:04,440 --> 00:00:06,960 So a call to order the public utilities board 3 00:00:06,960 --> 00:00:11,880 for the city of Denton on Monday, February 26th, 2024. 4 00:00:11,880 --> 00:00:13,880 First item on the agenda is presentation 5 00:00:13,880 --> 00:00:14,920 for members of the public. 6 00:00:14,920 --> 00:00:17,680 Did anyone, nobody who wishes to speak. 7 00:00:17,680 --> 00:00:19,400 Next item is the consent item. 8 00:00:19,400 --> 00:00:23,520 Does any board member wish to pull an item from A through G? 9 00:00:23,520 --> 00:00:25,120 - Yes, ma'am, I'd like to pull item A. 10 00:00:25,120 --> 00:00:28,080 - Mr. Rybeck's pulling item A, any others? 11 00:00:29,120 --> 00:00:32,320 All right, do we have a motion to approve items B through G? 12 00:00:32,320 --> 00:00:35,400 - So moved. - Second. 13 00:00:35,400 --> 00:00:39,920 - Okay, Mr. Cheek, Mr. Rybeck, all in favor say aye. 14 00:00:39,920 --> 00:00:40,760 - Aye. 15 00:00:40,760 --> 00:00:47,520 - Consider approval of the January 22nd, 2024 minutes. 16 00:00:47,520 --> 00:00:49,600 They were. - So moved. 17 00:00:49,600 --> 00:00:51,400 - Okay, and do we have a second? 18 00:00:51,400 --> 00:00:55,000 Mr. Rybeck seconds, all in favor say aye. 19 00:00:55,000 --> 00:00:56,440 - Aye. 20 00:00:56,440 --> 00:00:58,320 - Oh, I'm sorry, missed item A. 21 00:00:58,320 --> 00:00:59,760 - I'm out of order. 22 00:00:59,760 --> 00:01:01,520 - Item A. - You're out of order. 23 00:01:01,520 --> 00:01:03,760 (laughing) 24 00:01:03,760 --> 00:01:05,360 - You need to slap me. 25 00:01:05,360 --> 00:01:06,200 - We can do it after, that's okay. 26 00:01:06,200 --> 00:01:08,520 - Okay, we'll do it now. 27 00:01:08,520 --> 00:01:11,240 Item A. 28 00:01:11,240 --> 00:01:16,360 - Mr. Manager, just to speak a little bit about the process 29 00:01:16,360 --> 00:01:18,920 that we do to pre-qualify the engineers 30 00:01:18,920 --> 00:01:20,360 before the department comes and answers 31 00:01:20,360 --> 00:01:21,560 most of your questions. 32 00:01:21,560 --> 00:01:24,400 We recommend that we get these pre-qualified lists 33 00:01:24,400 --> 00:01:26,760 because per state law and our purchasing policy 34 00:01:26,760 --> 00:01:29,640 that was approved by council, that we have to formally 35 00:01:29,640 --> 00:01:33,960 solicit with a request for qualification all engineers. 36 00:01:33,960 --> 00:01:36,720 By pre-qualifying them, it speeds up the process 37 00:01:36,720 --> 00:01:38,280 when we need an engineer. 38 00:01:38,280 --> 00:01:39,920 They've already combed through, as you can see, 39 00:01:39,920 --> 00:01:44,120 they've got lots of submittals and qualified the top. 40 00:01:44,120 --> 00:01:47,080 So if we had to do that each project, it would add time. 41 00:01:47,080 --> 00:01:49,200 So this way, this allows it when they need one, 42 00:01:49,200 --> 00:01:51,240 when one comes up, when a project gets passed 43 00:01:51,240 --> 00:01:53,200 through CIP and budget and everything, 44 00:01:53,200 --> 00:01:56,560 they can go to that list, they can use the qualifications 45 00:01:56,560 --> 00:01:58,760 that were submitted now or they can, 46 00:01:58,760 --> 00:02:01,480 if it's a specific project, request more projects 47 00:02:01,480 --> 00:02:03,800 from them to evaluate and they evaluate them each time 48 00:02:03,800 --> 00:02:06,520 for every project and then they start negotiating 49 00:02:06,520 --> 00:02:07,360 with the top. 50 00:02:07,360 --> 00:02:10,400 So I just wanted to let you know why we recommend 51 00:02:10,400 --> 00:02:11,840 to do these pre-qualified lists. 52 00:02:11,840 --> 00:02:13,040 - I understand why you're pre-qualified. 53 00:02:13,040 --> 00:02:13,880 - Yeah. 54 00:02:13,880 --> 00:02:15,600 - I mean, I appreciate the process 55 00:02:15,600 --> 00:02:17,320 and that wasn't really my question. 56 00:02:17,320 --> 00:02:21,600 My question is really about all these pre-qualifications. 57 00:02:21,600 --> 00:02:24,640 In some of the categories, we have multiple firms 58 00:02:24,640 --> 00:02:27,000 and in one category, we had only one firm 59 00:02:27,000 --> 00:02:28,880 or in a couple, we only had a couple. 60 00:02:28,880 --> 00:02:30,680 I was just curious if there was a need 61 00:02:30,680 --> 00:02:35,240 for more engineering horsepower in a given category 62 00:02:35,240 --> 00:02:38,840 or why there were more in some and fewer in others? 63 00:02:38,840 --> 00:02:40,680 - Well, they were asked to select what category 64 00:02:40,680 --> 00:02:42,440 they wanted to be qualified for. 65 00:02:42,440 --> 00:02:46,400 So once it closes, we can't add more to it. 66 00:02:46,400 --> 00:02:48,240 - I was asking about that, so I'm just saying. 67 00:02:48,240 --> 00:02:49,080 - Yeah. 68 00:02:49,080 --> 00:02:50,080 - You recommended, for instance, 69 00:02:50,080 --> 00:02:52,960 in one category, four engineering firms, 70 00:02:52,960 --> 00:02:55,640 another category, one engineering firm out of that. 71 00:02:55,640 --> 00:02:57,120 Was that only because of the scoring 72 00:02:57,120 --> 00:02:59,360 or because you're gonna have more need for them? 73 00:02:59,360 --> 00:03:00,760 - It was mostly for the scoring. 74 00:03:00,760 --> 00:03:01,760 I mean, they're supposed to score 75 00:03:01,760 --> 00:03:04,840 per what was put out in the solicitation 76 00:03:04,840 --> 00:03:06,640 and they each do it individually 77 00:03:06,640 --> 00:03:11,000 just to make sure that it's done fairly and competitively 78 00:03:11,000 --> 00:03:13,120 based on what qualifications they see. 79 00:03:13,120 --> 00:03:15,520 And even though we have this qualified list, 80 00:03:15,520 --> 00:03:16,880 if there is a project out there 81 00:03:16,880 --> 00:03:19,640 that we don't feel anyone on the qualified list can do it, 82 00:03:19,640 --> 00:03:23,000 then they can do a request for qualifications at that point. 83 00:03:23,000 --> 00:03:24,320 - Specific to that project. 84 00:03:24,320 --> 00:03:25,600 - Specific to that project, yeah. 85 00:03:25,600 --> 00:03:28,360 They're not required to have to use this for every project. 86 00:03:28,360 --> 00:03:29,960 They can still go out. 87 00:03:29,960 --> 00:03:30,800 - Well, I must say, 88 00:03:30,800 --> 00:03:33,040 I don't know what category you left untouched. 89 00:03:33,040 --> 00:03:34,000 (laughing) 90 00:03:34,000 --> 00:03:35,000 - They did have a lot. 91 00:03:35,000 --> 00:03:36,400 They had a lot to review. 92 00:03:36,400 --> 00:03:38,800 - Okay, thank you. 93 00:03:38,800 --> 00:03:41,160 - One further question on the process here. 94 00:03:41,160 --> 00:03:46,160 So once there's a category that has four qualified firms, 95 00:03:48,080 --> 00:03:52,680 are they given projects kind of in rotation or based on? 96 00:03:52,680 --> 00:03:54,680 - Every project, they get evaluated. 97 00:03:54,680 --> 00:03:58,280 So yeah, they can reach out to the four that are qualified 98 00:03:58,280 --> 00:04:00,400 and ask for more qualifications 99 00:04:00,400 --> 00:04:01,600 and tell them the project, 100 00:04:01,600 --> 00:04:04,360 like we have a water plant that needs something done to it. 101 00:04:04,360 --> 00:04:06,840 They would reach out to them, ask for more qualifications 102 00:04:06,840 --> 00:04:08,960 if they didn't feel they had enough already given to us 103 00:04:08,960 --> 00:04:10,760 with this solicitation. 104 00:04:10,760 --> 00:04:13,000 And then they evaluate them based on that project, 105 00:04:13,000 --> 00:04:14,080 specific, those four. 106 00:04:14,080 --> 00:04:17,560 So their scores reset for every project. 107 00:04:17,560 --> 00:04:18,400 - Okay. 108 00:04:18,400 --> 00:04:20,480 So this isn't like an IDIQ where they could just, 109 00:04:20,480 --> 00:04:21,960 here's the task, here's the task. 110 00:04:21,960 --> 00:04:23,120 Okay, thank you. 111 00:04:23,120 --> 00:04:23,960 - Yep. 112 00:04:23,960 --> 00:04:24,800 - Question. 113 00:04:24,800 --> 00:04:26,000 - Yep. 114 00:04:26,000 --> 00:04:29,040 - So notice that your cutoff seems to be 80. 115 00:04:29,040 --> 00:04:29,880 - Yes. 116 00:04:29,880 --> 00:04:30,720 - Right. 117 00:04:30,720 --> 00:04:35,880 Apparently it was not taken into consideration that, 118 00:04:35,880 --> 00:04:39,760 okay, well, cutoff's 80 and we only got three folks 119 00:04:39,760 --> 00:04:43,440 and maybe that's not competitive enough. 120 00:04:43,440 --> 00:04:46,360 Is there a consideration to go down that list a little? 121 00:04:46,360 --> 00:04:47,200 - They did. 122 00:04:47,200 --> 00:04:49,040 - They actually evaluated this one twice. 123 00:04:49,040 --> 00:04:52,680 So the very first time they didn't have as many above 80. 124 00:04:52,680 --> 00:04:56,640 So then after they discussed and talked individually, 125 00:04:56,640 --> 00:04:58,280 we have them evaluate them individually 126 00:04:58,280 --> 00:05:00,440 and then they get together in a group setting 127 00:05:00,440 --> 00:05:04,880 and go over the scores and then can reevaluate. 128 00:05:04,880 --> 00:05:08,240 - So was the experience of the firm 129 00:05:08,240 --> 00:05:11,440 and some of these other items, 130 00:05:11,440 --> 00:05:14,960 is the consideration with the firm only or did they, 131 00:05:14,960 --> 00:05:18,800 let's say, I'm just gonna take these, 132 00:05:18,800 --> 00:05:20,640 no specific burkoff. 133 00:05:20,640 --> 00:05:24,160 Let's say they've got a lower experience score, 134 00:05:24,160 --> 00:05:27,920 adequacy and availability, key personnel and project team. 135 00:05:27,920 --> 00:05:29,200 Let's say they go and hire a bunch 136 00:05:29,200 --> 00:05:30,840 of Corolla engineers guys. 137 00:05:30,840 --> 00:05:34,280 Do you take that into consideration? 138 00:05:34,280 --> 00:05:36,040 - If they didn't make the qualified list, 139 00:05:36,040 --> 00:05:37,480 we wouldn't on projects. 140 00:05:37,480 --> 00:05:41,880 But if they made, like if they made the qualified list 141 00:05:41,880 --> 00:05:45,080 and then-- - Well, during that process 142 00:05:45,080 --> 00:05:47,680 of making the qualified list. 143 00:05:47,680 --> 00:05:53,000 - Stephen Gates, director of water utilities. 144 00:05:53,000 --> 00:05:56,000 I believe you're asking if they were to add resources 145 00:05:56,000 --> 00:05:58,520 to their team, would we take that in consideration? 146 00:05:58,520 --> 00:06:00,520 It's basically, the evaluation is based off 147 00:06:00,520 --> 00:06:02,120 of what they presented, right? 148 00:06:02,120 --> 00:06:05,480 So we published the request for qualifications, 149 00:06:05,480 --> 00:06:08,080 they respond, we evaluate their information. 150 00:06:08,080 --> 00:06:10,520 If they were to have indicated 151 00:06:10,520 --> 00:06:12,680 that they had this additional horsepower, 152 00:06:12,680 --> 00:06:14,720 yes, it would have been taken into consideration. 153 00:06:14,720 --> 00:06:17,080 If they didn't, there's no way the evaluation team 154 00:06:17,080 --> 00:06:18,600 could take that into consideration. 155 00:06:18,600 --> 00:06:21,080 - Okay, that's good, 'cause you know, 156 00:06:21,080 --> 00:06:24,840 the point being, you never get off the low list 157 00:06:24,840 --> 00:06:27,520 unless you improve your company 158 00:06:27,520 --> 00:06:29,920 in the eyes of this assessment, at least, right? 159 00:06:29,920 --> 00:06:30,760 - Yes. - In the eyes 160 00:06:30,760 --> 00:06:31,600 of your assessment. 161 00:06:31,600 --> 00:06:35,200 But that always needs to be a possibility, I think. 162 00:06:35,200 --> 00:06:36,840 - It does, and that's why-- - Didn't they have 163 00:06:36,840 --> 00:06:39,280 the same employees that they had 15 years ago? 164 00:06:39,280 --> 00:06:40,920 So, I mean, you know. 165 00:06:40,920 --> 00:06:43,200 - Well, and that's why we continue to republish the list. 166 00:06:43,200 --> 00:06:46,040 So we revisit this every three to five years 167 00:06:46,040 --> 00:06:48,240 to update the list, and to your point 168 00:06:48,240 --> 00:06:51,840 about the limited number of companies in a given category, 169 00:06:51,840 --> 00:06:54,640 as Lori mentioned, we went back and we reevaluated that, 170 00:06:54,640 --> 00:06:57,220 'cause we recognized in the first pass 171 00:06:57,220 --> 00:07:00,420 that we didn't have a lot of companies qualified 172 00:07:00,420 --> 00:07:02,960 in specific areas, and we wanted to at least have three, 173 00:07:02,960 --> 00:07:06,000 and so we reevaluated it, and we actually added 174 00:07:06,000 --> 00:07:08,400 a significant number of companies to the list 175 00:07:08,400 --> 00:07:09,760 based off of that process. 176 00:07:09,760 --> 00:07:11,360 - So let's say, and I'm not going to, 177 00:07:11,360 --> 00:07:14,120 let's say I start an engineering firm, 178 00:07:14,120 --> 00:07:16,980 and you've never done business with that engineering firm, 179 00:07:16,980 --> 00:07:19,800 and that engineering firm comes up and says, 180 00:07:19,800 --> 00:07:24,800 well, we just hired Joe Blow with 30 years of experience 181 00:07:24,800 --> 00:07:30,560 with water supply planning, and he brought a guy with him 182 00:07:30,560 --> 00:07:32,480 that had 20 years of experience, 183 00:07:32,480 --> 00:07:35,360 so that would be taken into effect, right? 184 00:07:35,360 --> 00:07:37,600 - When we're doing our evaluation, yes. 185 00:07:37,600 --> 00:07:39,000 We're in the three to five years. 186 00:07:39,000 --> 00:07:41,120 - Yeah, in the three to five, yes, yes, ma'am. 187 00:07:41,120 --> 00:07:43,560 - I mean, I like pre-qualification. 188 00:07:43,560 --> 00:07:45,660 I think that's really the way to go. 189 00:07:45,660 --> 00:07:47,960 I think there's some jobs that would go different 190 00:07:47,960 --> 00:07:50,920 that we've discussed current, I mean, recently, 191 00:07:50,920 --> 00:07:55,480 that may have gone another way had that been the case. 192 00:07:55,480 --> 00:07:59,720 Not specifically with wastewater, but anyway. 193 00:07:59,720 --> 00:08:01,480 Okay, that's all I got, thank you. 194 00:08:01,480 --> 00:08:02,440 - Other questions? 195 00:08:02,440 --> 00:08:05,840 Do we have a motion to approve item A? 196 00:08:06,760 --> 00:08:07,840 - She was gonna say something. 197 00:08:07,840 --> 00:08:08,680 - Oh, you were gonna say something, sorry. 198 00:08:08,680 --> 00:08:10,360 - I was gonna add to Billy, just so you know, 199 00:08:10,360 --> 00:08:12,360 all these firms that do not get qualified, 200 00:08:12,360 --> 00:08:14,400 they in a lot do ask for a debrief, 201 00:08:14,400 --> 00:08:15,900 and we go over and let them know 202 00:08:15,900 --> 00:08:17,000 why they weren't qualified. 203 00:08:17,000 --> 00:08:19,040 - Oh, yeah, I'm familiar with that. 204 00:08:19,040 --> 00:08:20,720 - That's excellent, I compliment you on doing that. 205 00:08:20,720 --> 00:08:23,080 I think a lot of firms would like to know. 206 00:08:23,080 --> 00:08:26,480 I had further questions about the engineering services 207 00:08:26,480 --> 00:08:30,260 regarding project impact and planning over time. 208 00:08:30,260 --> 00:08:33,240 I'm assuming if you want this much engineering horsepower, 209 00:08:33,240 --> 00:08:36,200 you got a lot of stuff you want them to do 210 00:08:36,200 --> 00:08:39,080 in terms of either bond projects, capital, 211 00:08:39,080 --> 00:08:41,200 or, you know, maintenance and repair. 212 00:08:41,200 --> 00:08:46,020 - I'm Nick Damp, good morning board. 213 00:08:46,020 --> 00:08:50,600 I'm the senior engineer with water utilities. 214 00:08:50,600 --> 00:08:52,720 Can you repeat the question, sorry? 215 00:08:52,720 --> 00:08:53,560 - I'd be happy to. 216 00:08:53,560 --> 00:08:54,780 - Thank you. 217 00:08:54,780 --> 00:08:57,420 - Since you're going out for so much engineering services, 218 00:08:57,420 --> 00:09:01,280 I wanted to find out if these services are attached 219 00:09:01,280 --> 00:09:04,140 to large scale planning projects. 220 00:09:04,140 --> 00:09:06,680 The last time I saw a prequel this big, 221 00:09:06,680 --> 00:09:10,440 it was for a $300 million bond project. 222 00:09:10,440 --> 00:09:14,640 So I'm assuming you have some demand for their services. 223 00:09:14,640 --> 00:09:17,520 I'd like to have some context for that. 224 00:09:17,520 --> 00:09:20,520 - Well, we have the Ray Roberts expansion. 225 00:09:20,520 --> 00:09:24,440 We have, you know, the expansion of our Pecan Creek 226 00:09:24,440 --> 00:09:26,520 water rec plant. 227 00:09:26,520 --> 00:09:30,200 We're gonna bring on two new rec plants in the near future. 228 00:09:30,200 --> 00:09:32,200 That's not really in the five year right now, 229 00:09:32,200 --> 00:09:36,640 but yeah, we have lots of large projects. 230 00:09:36,640 --> 00:09:40,160 - Okay, could you give us an overall dollar volume, 231 00:09:40,160 --> 00:09:41,280 time frame? 232 00:09:41,280 --> 00:09:44,960 I mean, just for the sake of discussion, 233 00:09:44,960 --> 00:09:47,520 I'm not asking for hard specifics, 234 00:09:47,520 --> 00:09:49,480 but just a general idea. 235 00:09:49,480 --> 00:09:54,360 - So, Mr. Rybeck, Stephen Gay, director of water utilities. 236 00:09:54,360 --> 00:09:55,600 We, as you're aware, we're going through 237 00:09:55,600 --> 00:09:57,100 the budget process right now. 238 00:09:57,100 --> 00:09:59,560 So we have a significant number of projects 239 00:09:59,560 --> 00:10:01,140 in the capital plan. 240 00:10:01,140 --> 00:10:04,880 Depending on how that unfolds with regards to the rates 241 00:10:04,880 --> 00:10:07,560 and different funding mechanisms and bonds, 242 00:10:07,560 --> 00:10:10,240 that's gonna really drive what projects get approved 243 00:10:10,240 --> 00:10:11,760 in the five year plan. 244 00:10:11,760 --> 00:10:15,040 Right now, we have a current one from the last fiscal 245 00:10:15,040 --> 00:10:17,040 23-24 budget cycle. 246 00:10:17,040 --> 00:10:19,640 It was a total, in the five year plan 247 00:10:19,640 --> 00:10:23,040 between water and wastewater was roughly $738 million 248 00:10:23,040 --> 00:10:24,940 of capital investment. 249 00:10:24,940 --> 00:10:27,520 So if that gives you, kind of paints that landscape for you. 250 00:10:27,520 --> 00:10:28,360 - That's kind of what I was looking for, 251 00:10:28,360 --> 00:10:30,440 some context to the demand for service. 252 00:10:30,440 --> 00:10:31,880 It's quite significant. 253 00:10:31,880 --> 00:10:32,720 - I thought so. 254 00:10:32,720 --> 00:10:33,560 - Yes, sir. 255 00:10:33,560 --> 00:10:34,960 (laughs) 256 00:10:34,960 --> 00:10:37,360 - Is there a component to that that is also 257 00:10:37,360 --> 00:10:39,320 planned maintenance and repair projects? 258 00:10:39,320 --> 00:10:42,480 You know, replacing aging equipment and that sort of thing? 259 00:10:42,480 --> 00:10:46,320 - Well, this is more for water and wastewater treatment 260 00:10:46,320 --> 00:10:51,320 vertical processes, like for instance, water rights, 261 00:10:51,320 --> 00:10:57,400 plant construction, you know, planning, emergency planning. 262 00:11:00,120 --> 00:11:05,120 So the list is more focused on, excuse me, 263 00:11:05,120 --> 00:11:10,280 the list is more focused on like, 264 00:11:10,280 --> 00:11:13,440 let me think here, sorry. 265 00:11:13,440 --> 00:11:16,680 Sorry, go ahead. 266 00:11:16,680 --> 00:11:17,500 (laughs) 267 00:11:17,500 --> 00:11:19,160 - That's okay, that's okay. 268 00:11:19,160 --> 00:11:21,920 So to answer your question, Mr. Rybeck, 269 00:11:21,920 --> 00:11:26,920 the projects do include some R&R. 270 00:11:26,920 --> 00:11:30,000 So as we're going through and say we're doing a plant, 271 00:11:30,000 --> 00:11:32,240 the plant expansion, part of that, 272 00:11:32,240 --> 00:11:34,180 we've taken a look at the condition 273 00:11:34,180 --> 00:11:35,960 of the existing facilities and say, 274 00:11:35,960 --> 00:11:38,560 is there an opportunity while we're mobilized 275 00:11:38,560 --> 00:11:41,000 to do this expansion to address some of our 276 00:11:41,000 --> 00:11:42,960 more critical needs at that site? 277 00:11:42,960 --> 00:11:45,040 So we do fold those into the capital plan. 278 00:11:45,040 --> 00:11:47,160 - Okay, 'cause it seemed like we recently approved something 279 00:11:47,160 --> 00:11:51,520 that was a repair project, a filter media replacement 280 00:11:51,520 --> 00:11:53,320 or something, it was reasonably substantial. 281 00:11:53,320 --> 00:11:54,400 - Yes, sir, yes, sir. 282 00:11:54,400 --> 00:11:55,520 - Okay. 283 00:11:55,520 --> 00:11:56,360 Well, very good, thank you. 284 00:11:56,360 --> 00:11:58,200 That's kind of what I wanted, some context 285 00:11:58,200 --> 00:11:59,640 for the request for service. 286 00:11:59,640 --> 00:12:00,480 - Thank you. 287 00:12:00,480 --> 00:12:02,040 - Understood. 288 00:12:02,040 --> 00:12:03,660 - Any further questions? 289 00:12:03,660 --> 00:12:08,000 Okay, do we have a motion to approve item A? 290 00:12:08,000 --> 00:12:08,840 - So moved. 291 00:12:08,840 --> 00:12:09,680 - Thank you, Mr. Rybeck. 292 00:12:09,680 --> 00:12:11,000 And seconded by Mr. Cheek. 293 00:12:11,000 --> 00:12:12,120 All in favor, say aye. 294 00:12:12,120 --> 00:12:13,760 - Aye. 295 00:12:13,760 --> 00:12:17,960 - All right, now onto PUB 24-046. 296 00:12:17,960 --> 00:12:22,480 - 41. 297 00:12:22,480 --> 00:12:23,320 - 41. 298 00:12:23,320 --> 00:12:24,520 No, 40, no, we did the approval. 299 00:12:24,520 --> 00:12:25,360 - We already did minutes? 300 00:12:25,360 --> 00:12:26,200 - We already did minutes, yeah. 301 00:12:26,200 --> 00:12:28,440 - Y'all are too fancy, you got two votes in there. 302 00:12:28,440 --> 00:12:30,680 (laughing) 303 00:12:30,680 --> 00:12:36,560 - You're up. 304 00:12:36,560 --> 00:12:42,680 - Good morning, members of the PUB. 305 00:12:42,680 --> 00:12:44,720 I'm Randy Key, Tate Municipal Electric, 306 00:12:44,720 --> 00:12:46,320 electric engineering supervisor. 307 00:12:46,320 --> 00:12:51,400 All right, bringing forward a contract 308 00:12:51,400 --> 00:12:54,040 for distribution manual and automated equipment. 309 00:12:56,100 --> 00:12:59,800 This RFP is for the supply of medium voltage, 310 00:12:59,800 --> 00:13:01,320 manual and automated equipment. 311 00:13:01,320 --> 00:13:05,340 It's for our trip savers, reclosers, switch gears. 312 00:13:05,340 --> 00:13:10,040 These items are critical for our daily operation. 313 00:13:10,040 --> 00:13:13,240 This equipment allows DME to switch distribution load 314 00:13:13,240 --> 00:13:14,400 and isolate faults. 315 00:13:14,400 --> 00:13:18,360 The main things that I wanna go over is, 316 00:13:18,360 --> 00:13:20,320 everybody knows the supply chain. 317 00:13:20,320 --> 00:13:21,960 These items have been hit. 318 00:13:21,960 --> 00:13:25,180 We do see a one to anywhere from five years for lead times. 319 00:13:26,600 --> 00:13:29,060 Along with the 50% increase in price, 320 00:13:29,060 --> 00:13:33,320 these items are funded from our warehouse capital budget 321 00:13:33,320 --> 00:13:35,820 and these assets are managed in-house at DME. 322 00:13:35,820 --> 00:13:39,760 These are our estimated spend. 323 00:13:39,760 --> 00:13:42,680 We're looking at 5.4 million a year. 324 00:13:42,680 --> 00:13:44,900 With a total of 30 million, 325 00:13:44,900 --> 00:13:49,240 we did add a three million contingency. 326 00:13:49,240 --> 00:13:52,240 And we recommend approving this contract with ERBY. 327 00:13:54,040 --> 00:13:57,100 And at this time, I'll take any questions you have. 328 00:13:57,100 --> 00:13:58,040 - Questions. 329 00:13:58,040 --> 00:14:00,400 Mr. Rybick. 330 00:14:00,400 --> 00:14:04,160 - I noticed in your pricing evaluation sheet 331 00:14:04,160 --> 00:14:07,980 that's a little bit more than the 5.4 million a year. 332 00:14:07,980 --> 00:14:09,040 (laughs) 333 00:14:09,040 --> 00:14:11,040 I was curious how you divided that up. 334 00:14:11,040 --> 00:14:17,200 - We estimated our 5.4 million on years past 335 00:14:17,200 --> 00:14:20,760 and we went up a little bit just because of, 336 00:14:20,760 --> 00:14:22,720 if we need it for the next two physical years, 337 00:14:22,720 --> 00:14:24,320 we need to purchase it this year. 338 00:14:24,320 --> 00:14:28,160 So that's where our 5.4 came from. 339 00:14:28,160 --> 00:14:29,880 - Okay, well, I just noticed some of these items 340 00:14:29,880 --> 00:14:32,320 were a little bit more expensive than that. 341 00:14:32,320 --> 00:14:33,160 - They are. 342 00:14:33,160 --> 00:14:33,980 - Yeah. 343 00:14:33,980 --> 00:14:38,160 That has been our life since 2020. 344 00:14:38,160 --> 00:14:40,080 - That way your budget carries over to this year 345 00:14:40,080 --> 00:14:41,480 and the next year. 346 00:14:41,480 --> 00:14:42,360 - Yes, sir. 347 00:14:42,360 --> 00:14:43,780 - Any further questions? 348 00:14:43,780 --> 00:14:47,520 Do we have a motion to approve this item? 349 00:14:47,520 --> 00:14:50,080 Mr. Rybick's moving. 350 00:14:52,480 --> 00:14:53,320 - Thank you. 351 00:14:53,320 --> 00:14:54,140 - Mr. Taylor seconds. 352 00:14:54,140 --> 00:14:54,980 All in favor? 353 00:14:54,980 --> 00:14:55,820 - Aye. 354 00:14:55,820 --> 00:14:58,600 - And it's reading the courts. 355 00:14:58,600 --> 00:14:59,440 - Thank you. 356 00:14:59,440 --> 00:15:05,840 - So Madam Chair, members of the PUB, 357 00:15:05,840 --> 00:15:08,300 so we do have a few items for you. 358 00:15:08,300 --> 00:15:12,520 The first item is just a listing of the items 359 00:15:12,520 --> 00:15:14,080 that had come to the PUB, 360 00:15:14,080 --> 00:15:16,480 but as you know, we didn't have a quorum. 361 00:15:16,480 --> 00:15:17,480 I did talk with the Chair 362 00:15:17,480 --> 00:15:20,180 and we did push those forward to the City Council. 363 00:15:20,180 --> 00:15:21,500 We've listed those out for you. 364 00:15:21,500 --> 00:15:25,660 The backup is online, both on the archive information 365 00:15:25,660 --> 00:15:27,080 for the PUB and also for the Council. 366 00:15:27,080 --> 00:15:30,120 If you have any questions, Lori and her team are here. 367 00:15:30,120 --> 00:15:32,160 I think we still have some staff members here 368 00:15:32,160 --> 00:15:34,360 if there's any questions on any of those items. 369 00:15:34,360 --> 00:15:36,800 But they were all approved by the City Council. 370 00:15:36,800 --> 00:15:37,640 - All right. 371 00:15:37,640 --> 00:15:39,440 No questions. 372 00:15:39,440 --> 00:15:43,840 - We don't blame you, Billy. 373 00:15:43,840 --> 00:15:45,920 - Life happens. 374 00:15:45,920 --> 00:15:49,560 - So the next item is just future agenda items. 375 00:15:49,560 --> 00:15:53,880 We did list on here for March 11th, 376 00:15:53,880 --> 00:15:58,680 we will be coming to the PUB per the Council's direction. 377 00:15:58,680 --> 00:16:01,240 We also had a riveting presentation ready for you 378 00:16:01,240 --> 00:16:03,840 at the last meeting and we didn't have a quorum. 379 00:16:03,840 --> 00:16:07,080 So we went forward to the Council, we presented. 380 00:16:07,080 --> 00:16:08,120 - It was riveting. 381 00:16:08,120 --> 00:16:08,960 - It was riveting. 382 00:16:08,960 --> 00:16:13,960 So we did present to the City Council on the DME budget, 383 00:16:13,960 --> 00:16:17,700 received direction from the Council basically on three items. 384 00:16:17,700 --> 00:16:20,840 One is to finance a little bit over $31 million 385 00:16:20,840 --> 00:16:21,680 over five years. 386 00:16:21,680 --> 00:16:25,680 This was related to purchase power expenses in the summer. 387 00:16:25,680 --> 00:16:28,880 And also a recommendation to kind of get back 388 00:16:28,880 --> 00:16:31,840 to managing the fund the way it was intended 389 00:16:31,840 --> 00:16:35,620 with an ECA and a TCRF that recovers appropriately. 390 00:16:35,620 --> 00:16:39,000 We'll be bringing that particular item on the ECA and TCRF 391 00:16:39,000 --> 00:16:42,560 back to the Board here with a revision 392 00:16:42,560 --> 00:16:45,800 to the rate ordinance that will then go to Council 393 00:16:45,800 --> 00:16:49,080 for further consideration approval on the 19th. 394 00:16:49,080 --> 00:16:52,320 And so that's what we have for you today. 395 00:16:52,320 --> 00:16:54,580 Obviously we have a number of items, 396 00:16:54,580 --> 00:16:57,040 budgetary items that will be coming to you 397 00:16:57,040 --> 00:17:01,600 as part of the normal course of the budget process. 398 00:17:01,600 --> 00:17:05,440 And then the next item is just new business. 399 00:17:05,440 --> 00:17:08,140 We've completed the very first item that you have on here 400 00:17:08,140 --> 00:17:10,260 on the third party software, 401 00:17:10,260 --> 00:17:13,120 still kind of working through the cost analysis 402 00:17:13,120 --> 00:17:16,120 on some information that was requested on the criteria 403 00:17:16,120 --> 00:17:20,080 manuals, we'll be working with the Post Development Services 404 00:17:20,080 --> 00:17:24,640 to provide you a memorandum on that particular topic. 405 00:17:24,640 --> 00:17:27,720 And then the item on relate to fleet, 406 00:17:27,720 --> 00:17:29,000 obviously we still have some time on that 407 00:17:29,000 --> 00:17:30,840 to continue to evaluate that. 408 00:17:30,840 --> 00:17:33,000 And before I kind of turn over for any questions, 409 00:17:33,000 --> 00:17:34,080 just have a couple of other items 410 00:17:34,080 --> 00:17:37,040 wanted to kind of inform you about. 411 00:17:37,040 --> 00:17:42,040 One, just a request and just a reminder about TOMA. 412 00:17:43,360 --> 00:17:47,800 If you are sending emails to staff or to each other, 413 00:17:47,800 --> 00:17:49,840 please make sure that you blind copy each other 414 00:17:49,840 --> 00:17:52,840 so that we don't get into any kind of TOMA violations. 415 00:17:52,840 --> 00:17:54,400 I don't have any questions about that. 416 00:17:54,400 --> 00:17:57,420 Marcel, I can certainly talk about that some more. 417 00:17:57,420 --> 00:18:01,600 The other item that also went to Council last week 418 00:18:01,600 --> 00:18:05,240 was related to an RFP that we did related 419 00:18:05,240 --> 00:18:08,400 to a Bitcoin miner, the Council did give us approval 420 00:18:08,400 --> 00:18:13,280 to proceed, the specific RFP award, PPA lease, 421 00:18:13,280 --> 00:18:15,840 we'll be coming to the board when that is ready. 422 00:18:15,840 --> 00:18:17,720 And so I didn't wanna let you know that that was an item 423 00:18:17,720 --> 00:18:19,420 that did go to the Council. 424 00:18:19,420 --> 00:18:23,420 Was that originally coming here for a variety of reasons, 425 00:18:23,420 --> 00:18:27,360 but Council gave us direction to continue to negotiate. 426 00:18:27,360 --> 00:18:30,000 Once that is ready, we will bring that to you. 427 00:18:30,000 --> 00:18:33,760 So with that, that's the update that I have, 428 00:18:33,760 --> 00:18:35,840 certainly happy to answer any questions you may have. 429 00:18:35,840 --> 00:18:36,680 - Go ahead. 430 00:18:36,680 --> 00:18:39,240 - So with the Bitcoin going to the Council, 431 00:18:39,240 --> 00:18:40,760 then they're gonna be bringing back the lease. 432 00:18:40,760 --> 00:18:43,400 Is this gonna be a foregone conclusion 433 00:18:43,400 --> 00:18:46,560 as far as us to just give it the vote and go on, 434 00:18:46,560 --> 00:18:48,880 or can there be changes made at that point, 435 00:18:48,880 --> 00:18:51,800 or are we gonna be stepping on some toes with the Council? 436 00:18:51,800 --> 00:18:56,040 - No, I think the Council, like with all the other items, 437 00:18:56,040 --> 00:18:58,680 wants the board to provide them advice. 438 00:18:58,680 --> 00:19:01,120 And so certainly they'll take that into consideration 439 00:19:01,120 --> 00:19:02,680 on their final decision, 440 00:19:02,680 --> 00:19:04,960 whether or not to approve the PPA or the lease. 441 00:19:04,960 --> 00:19:06,200 - Thank you. - Yes, sir. 442 00:19:07,080 --> 00:19:10,280 - So, excuse me, I've got a comment, 443 00:19:10,280 --> 00:19:14,480 and it's mostly on the ECA, the way we, 444 00:19:14,480 --> 00:19:16,840 I like the direction that we've gone. 445 00:19:16,840 --> 00:19:18,400 I think it's more open, 446 00:19:18,400 --> 00:19:21,180 which is what everybody says they're trying to get. 447 00:19:21,180 --> 00:19:27,720 There's a huge discussion going on with neighborhoods 448 00:19:27,720 --> 00:19:30,080 and HOAs from people who don't understand 449 00:19:30,080 --> 00:19:34,200 the difference between the prices. 450 00:19:34,200 --> 00:19:36,760 And so if our mainline price 451 00:19:36,760 --> 00:19:39,040 seems much higher than everyone else's, 452 00:19:39,040 --> 00:19:42,080 the other guys aren't telling them 453 00:19:42,080 --> 00:19:43,800 that the ECA rate is variable, right? 454 00:19:43,800 --> 00:19:45,760 I mean, it varies. 455 00:19:45,760 --> 00:19:49,760 And I hope we can continue to get education out there 456 00:19:49,760 --> 00:19:50,600 and talk to people. 457 00:19:50,600 --> 00:19:55,600 Are you seeing a lot of feedback from folks about costs? 458 00:19:55,600 --> 00:19:57,720 - No, I'm not. 459 00:19:57,720 --> 00:19:59,360 And certainly there's a number of other things 460 00:19:59,360 --> 00:20:01,560 that may be kind of eclipsing that. 461 00:20:01,560 --> 00:20:05,080 But I'll tell you, we try to present the information 462 00:20:05,080 --> 00:20:08,600 in terms of an average user of 1,000 kilowatts, 463 00:20:08,600 --> 00:20:12,840 and then we back into what the cents per kilowatt is. 464 00:20:12,840 --> 00:20:16,680 Currently, we're at 10.7 cents per kilowatt. 465 00:20:16,680 --> 00:20:21,000 Our review in the private sector, 466 00:20:21,000 --> 00:20:24,720 you're looking at a 12-month contract north of 15 cents. 467 00:20:24,720 --> 00:20:28,440 And so where we are today compared to where 468 00:20:28,440 --> 00:20:30,920 other providers are, certainly other MOUs, 469 00:20:30,920 --> 00:20:34,840 we're certainly the cheapest, where we will be, 470 00:20:34,840 --> 00:20:38,480 just from the changes on the ECA TCRF, 471 00:20:38,480 --> 00:20:42,160 by fiscal year '25, we'll be at 13 cents per kilowatt hours. 472 00:20:42,160 --> 00:20:44,880 We're still considerably less than where 473 00:20:44,880 --> 00:20:47,200 those other providers are currently at. 474 00:20:47,200 --> 00:20:49,200 We're not even assuming other increase 475 00:20:49,200 --> 00:20:51,360 that they're gonna continue to be doing. 476 00:20:51,360 --> 00:20:54,200 They certainly are faced with the same type 477 00:20:54,200 --> 00:20:56,640 of escalating prices on power, 478 00:20:56,640 --> 00:20:58,960 and as you've seen, even with equipment. 479 00:20:58,960 --> 00:21:01,040 And so we anticipate that they'll continue 480 00:21:01,040 --> 00:21:03,040 to increase as well, just like they have 481 00:21:03,040 --> 00:21:04,760 over the last almost seven years 482 00:21:04,760 --> 00:21:08,000 where DME has been flat on its rates. 483 00:21:08,000 --> 00:21:11,440 - Well, the other guys don't have to follow 484 00:21:11,440 --> 00:21:14,680 the same rules that we do, or they don't, 485 00:21:14,680 --> 00:21:16,920 even if they're supposed to, but you know what I'm saying? 486 00:21:16,920 --> 00:21:20,520 I mean, in the past, we have done some things in ECA 487 00:21:20,520 --> 00:21:22,400 that I think shouldn't have been there, 488 00:21:22,400 --> 00:21:24,200 and I think you're trying to correct those things, 489 00:21:24,200 --> 00:21:25,300 and I appreciate that. 490 00:21:26,960 --> 00:21:30,000 But the other folks, you know, I mean, 491 00:21:30,000 --> 00:21:32,480 they're calling on the phone to make a sales job, 492 00:21:32,480 --> 00:21:35,720 and so we don't get to compete with that. 493 00:21:35,720 --> 00:21:37,280 So dumbing it down a little bit, 494 00:21:37,280 --> 00:21:38,640 I'm sorry for that expression, 495 00:21:38,640 --> 00:21:42,320 but I need things dumbed down for me, a lot of things. 496 00:21:42,320 --> 00:21:45,280 I mean, just for the general public to understand. 497 00:21:45,280 --> 00:21:47,360 - Yeah, make it understandable to the general public. 498 00:21:47,360 --> 00:21:48,880 - They're being more transparent, 499 00:21:48,880 --> 00:21:50,880 and that's the right way to do things, 500 00:21:50,880 --> 00:21:54,200 and I mean, anyway. 501 00:21:54,200 --> 00:21:57,880 - It's out there, it's a lot of social media going on, 502 00:21:57,880 --> 00:21:58,720 a lot of people in discussion, 503 00:21:58,720 --> 00:22:00,720 and I try not to jump in the middle of it 504 00:22:00,720 --> 00:22:03,400 unless I know the person, so. 505 00:22:03,400 --> 00:22:07,040 - I received more emails in the last few days 506 00:22:07,040 --> 00:22:09,600 about Bitcoin mining than I have about our rates, 507 00:22:09,600 --> 00:22:14,120 and so, so yeah, so, and I may have more today, but-- 508 00:22:14,120 --> 00:22:15,240 - Yeah, I'm sure you will. 509 00:22:15,240 --> 00:22:19,240 - I promise you, mining, it's here to stay. 510 00:22:19,240 --> 00:22:22,600 - All right, any other discussion? 511 00:22:22,600 --> 00:22:23,440 Yes, go ahead. 512 00:22:23,440 --> 00:22:25,400 - I do would like clarification on the comment 513 00:22:25,400 --> 00:22:28,840 about the emails, just for my own understanding. 514 00:22:28,840 --> 00:22:32,240 So if I send an email to the chair, 515 00:22:32,240 --> 00:22:37,160 I copy other folks, I should be blind copying them? 516 00:22:37,160 --> 00:22:38,880 I mean, was that the implication? 517 00:22:38,880 --> 00:22:40,600 - So the idea of blind copying 518 00:22:40,600 --> 00:22:42,680 is so that you don't accidentally reply all, 519 00:22:42,680 --> 00:22:43,920 'cause that's the problem, 520 00:22:43,920 --> 00:22:45,360 is when you have public officials 521 00:22:45,360 --> 00:22:47,600 who are on an email that you reply all to, 522 00:22:47,600 --> 00:22:49,360 you're creating a walking quorum. 523 00:22:49,360 --> 00:22:52,600 - A walking quorum? 524 00:22:52,600 --> 00:22:57,120 - Yes, so when you email me and you copy Tony and Kim, 525 00:22:57,120 --> 00:22:59,120 no violation, none. 526 00:22:59,120 --> 00:23:00,960 If you do a reply to all, 527 00:23:00,960 --> 00:23:03,880 and we're all included on that email. 528 00:23:03,880 --> 00:23:05,320 - Okay. 529 00:23:05,320 --> 00:23:07,640 - Most of the time, it's innocent, but-- 530 00:23:07,640 --> 00:23:08,960 - Yeah. - Sometimes it hasn't been. 531 00:23:08,960 --> 00:23:10,480 - Yeah. - Well, let me just, 532 00:23:10,480 --> 00:23:13,120 that's the next question, I've done this multiple times. 533 00:23:13,120 --> 00:23:17,120 If I send an email to you, 534 00:23:17,120 --> 00:23:19,880 I always copy Billy since he's the vice chair, 535 00:23:19,880 --> 00:23:21,080 and I think that's appropriate 536 00:23:21,080 --> 00:23:23,600 in case you're not available, don't get it. 537 00:23:23,600 --> 00:23:26,520 And then of course, Tony and Kim, 538 00:23:26,520 --> 00:23:29,720 so that they can alert or coordinate 539 00:23:29,720 --> 00:23:32,520 or whatever needs to be done with the question at hand. 540 00:23:32,520 --> 00:23:34,280 So is that appropriate? 541 00:23:34,280 --> 00:23:36,120 - So that is three members. 542 00:23:36,120 --> 00:23:38,800 The minute it gets to four, it creates a walking quorum. 543 00:23:38,800 --> 00:23:40,240 - Oh, okay. - So the concern is 544 00:23:40,240 --> 00:23:42,480 that if you were to add someone later on in the chain, 545 00:23:42,480 --> 00:23:45,960 or you were to reply all and add another commissioner, 546 00:23:45,960 --> 00:23:47,800 then you would create that walking quorum. 547 00:23:47,800 --> 00:23:49,600 - Okay, well that helps me understand that. 548 00:23:49,600 --> 00:23:51,520 Thank you very much. - You're welcome, all right. 549 00:23:51,520 --> 00:23:53,080 - Just for instance, like I went, 550 00:23:53,080 --> 00:23:55,080 Arts and Jazz Festival year, I remember walking up 551 00:23:55,080 --> 00:23:58,040 and there was three council members standing there 552 00:23:58,040 --> 00:23:59,200 trying to get up Shinerbock, 553 00:23:59,200 --> 00:24:01,640 and one more walked up behind me, 554 00:24:01,640 --> 00:24:03,480 and they were like, "Whoa, we can't be here." 555 00:24:03,480 --> 00:24:05,440 (all laughing) 556 00:24:05,440 --> 00:24:07,600 - So that fourth one had to wait for his Shinerbock. 557 00:24:07,600 --> 00:24:09,760 - That's right. - Or hers, yeah, okay. 558 00:24:09,760 --> 00:24:13,000 That would be a problem. 559 00:24:13,000 --> 00:24:14,960 - Yeah, oh my gosh. 560 00:24:14,960 --> 00:24:17,160 Only if Shinerbock is public business. 561 00:24:17,160 --> 00:24:18,880 (all laughing) 562 00:24:18,880 --> 00:24:20,360 - Yeah, just for clarification, Mr. Rybak, 563 00:24:20,360 --> 00:24:22,200 that wasn't directed at your emails. 564 00:24:22,200 --> 00:24:24,600 And so we see that-- - You can raise 565 00:24:24,600 --> 00:24:27,080 the question in my mind. - Yes, sir, yes, sir. 566 00:24:27,080 --> 00:24:29,600 - You know, process-wise, am I doing this correctly? 567 00:24:29,600 --> 00:24:31,520 Now that I understand the concern 568 00:24:31,520 --> 00:24:34,240 that it's the walking quorum, it makes sense. 569 00:24:34,240 --> 00:24:35,080 - Right. 570 00:24:35,080 --> 00:24:37,480 Madam Chair, that's all I have. 571 00:24:37,480 --> 00:24:39,840 - All right, any other discussion? 572 00:24:39,840 --> 00:24:41,240 On to concluding items. 573 00:24:41,240 --> 00:24:44,040 Does any board member wish to say anything to the public 574 00:24:44,040 --> 00:24:45,960 or add something to a future agenda? 575 00:24:48,120 --> 00:24:49,360 Seeing none. 576 00:24:49,360 --> 00:24:51,280 Billy, do we have a motion to adjourn? 577 00:24:51,280 --> 00:24:53,160 924. - Adjourned. 578 00:24:53,160 --> 00:24:55,000 - All right, we're adjourned. 579 00:24:55,000 --> 00:24:56,680 - Do we have any questions?