WEBVTT 00:00:00.000 --> 00:00:04.440 - Okay, it is nine o'clock and we do have a quorum. 00:00:04.440 --> 00:00:06.960 So a call to order the public utilities board 00:00:06.960 --> 00:00:11.880 for the city of Denton on Monday, February 26th, 2024. 00:00:11.880 --> 00:00:13.880 First item on the agenda is presentation 00:00:13.880 --> 00:00:14.920 for members of the public. 00:00:14.920 --> 00:00:17.680 Did anyone, nobody who wishes to speak. 00:00:17.680 --> 00:00:19.400 Next item is the consent item. 00:00:19.400 --> 00:00:23.520 Does any board member wish to pull an item from A through G? 00:00:23.520 --> 00:00:25.120 - Yes, ma'am, I'd like to pull item A. 00:00:25.120 --> 00:00:28.080 - Mr. Rybeck's pulling item A, any others? 00:00:29.120 --> 00:00:32.320 All right, do we have a motion to approve items B through G? 00:00:32.320 --> 00:00:35.400 - So moved. - Second. 00:00:35.400 --> 00:00:39.920 - Okay, Mr. Cheek, Mr. Rybeck, all in favor say aye. 00:00:39.920 --> 00:00:40.760 - Aye. 00:00:40.760 --> 00:00:47.520 - Consider approval of the January 22nd, 2024 minutes. 00:00:47.520 --> 00:00:49.600 They were. - So moved. 00:00:49.600 --> 00:00:51.400 - Okay, and do we have a second? 00:00:51.400 --> 00:00:55.000 Mr. Rybeck seconds, all in favor say aye. 00:00:55.000 --> 00:00:56.440 - Aye. 00:00:56.440 --> 00:00:58.320 - Oh, I'm sorry, missed item A. 00:00:58.320 --> 00:00:59.760 - I'm out of order. 00:00:59.760 --> 00:01:01.520 - Item A. - You're out of order. 00:01:01.520 --> 00:01:03.760 (laughing) 00:01:03.760 --> 00:01:05.360 - You need to slap me. 00:01:05.360 --> 00:01:06.200 - We can do it after, that's okay. 00:01:06.200 --> 00:01:08.520 - Okay, we'll do it now. 00:01:08.520 --> 00:01:11.240 Item A. 00:01:11.240 --> 00:01:16.360 - Mr. Manager, just to speak a little bit about the process 00:01:16.360 --> 00:01:18.920 that we do to pre-qualify the engineers 00:01:18.920 --> 00:01:20.360 before the department comes and answers 00:01:20.360 --> 00:01:21.560 most of your questions. 00:01:21.560 --> 00:01:24.400 We recommend that we get these pre-qualified lists 00:01:24.400 --> 00:01:26.760 because per state law and our purchasing policy 00:01:26.760 --> 00:01:29.640 that was approved by council, that we have to formally 00:01:29.640 --> 00:01:33.960 solicit with a request for qualification all engineers. 00:01:33.960 --> 00:01:36.720 By pre-qualifying them, it speeds up the process 00:01:36.720 --> 00:01:38.280 when we need an engineer. 00:01:38.280 --> 00:01:39.920 They've already combed through, as you can see, 00:01:39.920 --> 00:01:44.120 they've got lots of submittals and qualified the top. 00:01:44.120 --> 00:01:47.080 So if we had to do that each project, it would add time. 00:01:47.080 --> 00:01:49.200 So this way, this allows it when they need one, 00:01:49.200 --> 00:01:51.240 when one comes up, when a project gets passed 00:01:51.240 --> 00:01:53.200 through CIP and budget and everything, 00:01:53.200 --> 00:01:56.560 they can go to that list, they can use the qualifications 00:01:56.560 --> 00:01:58.760 that were submitted now or they can, 00:01:58.760 --> 00:02:01.480 if it's a specific project, request more projects 00:02:01.480 --> 00:02:03.800 from them to evaluate and they evaluate them each time 00:02:03.800 --> 00:02:06.520 for every project and then they start negotiating 00:02:06.520 --> 00:02:07.360 with the top. 00:02:07.360 --> 00:02:10.400 So I just wanted to let you know why we recommend 00:02:10.400 --> 00:02:11.840 to do these pre-qualified lists. 00:02:11.840 --> 00:02:13.040 - I understand why you're pre-qualified. 00:02:13.040 --> 00:02:13.880 - Yeah. 00:02:13.880 --> 00:02:15.600 - I mean, I appreciate the process 00:02:15.600 --> 00:02:17.320 and that wasn't really my question. 00:02:17.320 --> 00:02:21.600 My question is really about all these pre-qualifications. 00:02:21.600 --> 00:02:24.640 In some of the categories, we have multiple firms 00:02:24.640 --> 00:02:27.000 and in one category, we had only one firm 00:02:27.000 --> 00:02:28.880 or in a couple, we only had a couple. 00:02:28.880 --> 00:02:30.680 I was just curious if there was a need 00:02:30.680 --> 00:02:35.240 for more engineering horsepower in a given category 00:02:35.240 --> 00:02:38.840 or why there were more in some and fewer in others? 00:02:38.840 --> 00:02:40.680 - Well, they were asked to select what category 00:02:40.680 --> 00:02:42.440 they wanted to be qualified for. 00:02:42.440 --> 00:02:46.400 So once it closes, we can't add more to it. 00:02:46.400 --> 00:02:48.240 - I was asking about that, so I'm just saying. 00:02:48.240 --> 00:02:49.080 - Yeah. 00:02:49.080 --> 00:02:50.080 - You recommended, for instance, 00:02:50.080 --> 00:02:52.960 in one category, four engineering firms, 00:02:52.960 --> 00:02:55.640 another category, one engineering firm out of that. 00:02:55.640 --> 00:02:57.120 Was that only because of the scoring 00:02:57.120 --> 00:02:59.360 or because you're gonna have more need for them? 00:02:59.360 --> 00:03:00.760 - It was mostly for the scoring. 00:03:00.760 --> 00:03:01.760 I mean, they're supposed to score 00:03:01.760 --> 00:03:04.840 per what was put out in the solicitation 00:03:04.840 --> 00:03:06.640 and they each do it individually 00:03:06.640 --> 00:03:11.000 just to make sure that it's done fairly and competitively 00:03:11.000 --> 00:03:13.120 based on what qualifications they see. 00:03:13.120 --> 00:03:15.520 And even though we have this qualified list, 00:03:15.520 --> 00:03:16.880 if there is a project out there 00:03:16.880 --> 00:03:19.640 that we don't feel anyone on the qualified list can do it, 00:03:19.640 --> 00:03:23.000 then they can do a request for qualifications at that point. 00:03:23.000 --> 00:03:24.320 - Specific to that project. 00:03:24.320 --> 00:03:25.600 - Specific to that project, yeah. 00:03:25.600 --> 00:03:28.360 They're not required to have to use this for every project. 00:03:28.360 --> 00:03:29.960 They can still go out. 00:03:29.960 --> 00:03:30.800 - Well, I must say, 00:03:30.800 --> 00:03:33.040 I don't know what category you left untouched. 00:03:33.040 --> 00:03:34.000 (laughing) 00:03:34.000 --> 00:03:35.000 - They did have a lot. 00:03:35.000 --> 00:03:36.400 They had a lot to review. 00:03:36.400 --> 00:03:38.800 - Okay, thank you. 00:03:38.800 --> 00:03:41.160 - One further question on the process here. 00:03:41.160 --> 00:03:46.160 So once there's a category that has four qualified firms, 00:03:48.080 --> 00:03:52.680 are they given projects kind of in rotation or based on? 00:03:52.680 --> 00:03:54.680 - Every project, they get evaluated. 00:03:54.680 --> 00:03:58.280 So yeah, they can reach out to the four that are qualified 00:03:58.280 --> 00:04:00.400 and ask for more qualifications 00:04:00.400 --> 00:04:01.600 and tell them the project, 00:04:01.600 --> 00:04:04.360 like we have a water plant that needs something done to it. 00:04:04.360 --> 00:04:06.840 They would reach out to them, ask for more qualifications 00:04:06.840 --> 00:04:08.960 if they didn't feel they had enough already given to us 00:04:08.960 --> 00:04:10.760 with this solicitation. 00:04:10.760 --> 00:04:13.000 And then they evaluate them based on that project, 00:04:13.000 --> 00:04:14.080 specific, those four. 00:04:14.080 --> 00:04:17.560 So their scores reset for every project. 00:04:17.560 --> 00:04:18.400 - Okay. 00:04:18.400 --> 00:04:20.480 So this isn't like an IDIQ where they could just, 00:04:20.480 --> 00:04:21.960 here's the task, here's the task. 00:04:21.960 --> 00:04:23.120 Okay, thank you. 00:04:23.120 --> 00:04:23.960 - Yep. 00:04:23.960 --> 00:04:24.800 - Question. 00:04:24.800 --> 00:04:26.000 - Yep. 00:04:26.000 --> 00:04:29.040 - So notice that your cutoff seems to be 80. 00:04:29.040 --> 00:04:29.880 - Yes. 00:04:29.880 --> 00:04:30.720 - Right. 00:04:30.720 --> 00:04:35.880 Apparently it was not taken into consideration that, 00:04:35.880 --> 00:04:39.760 okay, well, cutoff's 80 and we only got three folks 00:04:39.760 --> 00:04:43.440 and maybe that's not competitive enough. 00:04:43.440 --> 00:04:46.360 Is there a consideration to go down that list a little? 00:04:46.360 --> 00:04:47.200 - They did. 00:04:47.200 --> 00:04:49.040 - They actually evaluated this one twice. 00:04:49.040 --> 00:04:52.680 So the very first time they didn't have as many above 80. 00:04:52.680 --> 00:04:56.640 So then after they discussed and talked individually, 00:04:56.640 --> 00:04:58.280 we have them evaluate them individually 00:04:58.280 --> 00:05:00.440 and then they get together in a group setting 00:05:00.440 --> 00:05:04.880 and go over the scores and then can reevaluate. 00:05:04.880 --> 00:05:08.240 - So was the experience of the firm 00:05:08.240 --> 00:05:11.440 and some of these other items, 00:05:11.440 --> 00:05:14.960 is the consideration with the firm only or did they, 00:05:14.960 --> 00:05:18.800 let's say, I'm just gonna take these, 00:05:18.800 --> 00:05:20.640 no specific burkoff. 00:05:20.640 --> 00:05:24.160 Let's say they've got a lower experience score, 00:05:24.160 --> 00:05:27.920 adequacy and availability, key personnel and project team. 00:05:27.920 --> 00:05:29.200 Let's say they go and hire a bunch 00:05:29.200 --> 00:05:30.840 of Corolla engineers guys. 00:05:30.840 --> 00:05:34.280 Do you take that into consideration? 00:05:34.280 --> 00:05:36.040 - If they didn't make the qualified list, 00:05:36.040 --> 00:05:37.480 we wouldn't on projects. 00:05:37.480 --> 00:05:41.880 But if they made, like if they made the qualified list 00:05:41.880 --> 00:05:45.080 and then-- - Well, during that process 00:05:45.080 --> 00:05:47.680 of making the qualified list. 00:05:47.680 --> 00:05:53.000 - Stephen Gates, director of water utilities. 00:05:53.000 --> 00:05:56.000 I believe you're asking if they were to add resources 00:05:56.000 --> 00:05:58.520 to their team, would we take that in consideration? 00:05:58.520 --> 00:06:00.520 It's basically, the evaluation is based off 00:06:00.520 --> 00:06:02.120 of what they presented, right? 00:06:02.120 --> 00:06:05.480 So we published the request for qualifications, 00:06:05.480 --> 00:06:08.080 they respond, we evaluate their information. 00:06:08.080 --> 00:06:10.520 If they were to have indicated 00:06:10.520 --> 00:06:12.680 that they had this additional horsepower, 00:06:12.680 --> 00:06:14.720 yes, it would have been taken into consideration. 00:06:14.720 --> 00:06:17.080 If they didn't, there's no way the evaluation team 00:06:17.080 --> 00:06:18.600 could take that into consideration. 00:06:18.600 --> 00:06:21.080 - Okay, that's good, 'cause you know, 00:06:21.080 --> 00:06:24.840 the point being, you never get off the low list 00:06:24.840 --> 00:06:27.520 unless you improve your company 00:06:27.520 --> 00:06:29.920 in the eyes of this assessment, at least, right? 00:06:29.920 --> 00:06:30.760 - Yes. - In the eyes 00:06:30.760 --> 00:06:31.600 of your assessment. 00:06:31.600 --> 00:06:35.200 But that always needs to be a possibility, I think. 00:06:35.200 --> 00:06:36.840 - It does, and that's why-- - Didn't they have 00:06:36.840 --> 00:06:39.280 the same employees that they had 15 years ago? 00:06:39.280 --> 00:06:40.920 So, I mean, you know. 00:06:40.920 --> 00:06:43.200 - Well, and that's why we continue to republish the list. 00:06:43.200 --> 00:06:46.040 So we revisit this every three to five years 00:06:46.040 --> 00:06:48.240 to update the list, and to your point 00:06:48.240 --> 00:06:51.840 about the limited number of companies in a given category, 00:06:51.840 --> 00:06:54.640 as Lori mentioned, we went back and we reevaluated that, 00:06:54.640 --> 00:06:57.220 'cause we recognized in the first pass 00:06:57.220 --> 00:07:00.420 that we didn't have a lot of companies qualified 00:07:00.420 --> 00:07:02.960 in specific areas, and we wanted to at least have three, 00:07:02.960 --> 00:07:06.000 and so we reevaluated it, and we actually added 00:07:06.000 --> 00:07:08.400 a significant number of companies to the list 00:07:08.400 --> 00:07:09.760 based off of that process. 00:07:09.760 --> 00:07:11.360 - So let's say, and I'm not going to, 00:07:11.360 --> 00:07:14.120 let's say I start an engineering firm, 00:07:14.120 --> 00:07:16.980 and you've never done business with that engineering firm, 00:07:16.980 --> 00:07:19.800 and that engineering firm comes up and says, 00:07:19.800 --> 00:07:24.800 well, we just hired Joe Blow with 30 years of experience 00:07:24.800 --> 00:07:30.560 with water supply planning, and he brought a guy with him 00:07:30.560 --> 00:07:32.480 that had 20 years of experience, 00:07:32.480 --> 00:07:35.360 so that would be taken into effect, right? 00:07:35.360 --> 00:07:37.600 - When we're doing our evaluation, yes. 00:07:37.600 --> 00:07:39.000 We're in the three to five years. 00:07:39.000 --> 00:07:41.120 - Yeah, in the three to five, yes, yes, ma'am. 00:07:41.120 --> 00:07:43.560 - I mean, I like pre-qualification. 00:07:43.560 --> 00:07:45.660 I think that's really the way to go. 00:07:45.660 --> 00:07:47.960 I think there's some jobs that would go different 00:07:47.960 --> 00:07:50.920 that we've discussed current, I mean, recently, 00:07:50.920 --> 00:07:55.480 that may have gone another way had that been the case. 00:07:55.480 --> 00:07:59.720 Not specifically with wastewater, but anyway. 00:07:59.720 --> 00:08:01.480 Okay, that's all I got, thank you. 00:08:01.480 --> 00:08:02.440 - Other questions? 00:08:02.440 --> 00:08:05.840 Do we have a motion to approve item A? 00:08:06.760 --> 00:08:07.840 - She was gonna say something. 00:08:07.840 --> 00:08:08.680 - Oh, you were gonna say something, sorry. 00:08:08.680 --> 00:08:10.360 - I was gonna add to Billy, just so you know, 00:08:10.360 --> 00:08:12.360 all these firms that do not get qualified, 00:08:12.360 --> 00:08:14.400 they in a lot do ask for a debrief, 00:08:14.400 --> 00:08:15.900 and we go over and let them know 00:08:15.900 --> 00:08:17.000 why they weren't qualified. 00:08:17.000 --> 00:08:19.040 - Oh, yeah, I'm familiar with that. 00:08:19.040 --> 00:08:20.720 - That's excellent, I compliment you on doing that. 00:08:20.720 --> 00:08:23.080 I think a lot of firms would like to know. 00:08:23.080 --> 00:08:26.480 I had further questions about the engineering services 00:08:26.480 --> 00:08:30.260 regarding project impact and planning over time. 00:08:30.260 --> 00:08:33.240 I'm assuming if you want this much engineering horsepower, 00:08:33.240 --> 00:08:36.200 you got a lot of stuff you want them to do 00:08:36.200 --> 00:08:39.080 in terms of either bond projects, capital, 00:08:39.080 --> 00:08:41.200 or, you know, maintenance and repair. 00:08:41.200 --> 00:08:46.020 - I'm Nick Damp, good morning board. 00:08:46.020 --> 00:08:50.600 I'm the senior engineer with water utilities. 00:08:50.600 --> 00:08:52.720 Can you repeat the question, sorry? 00:08:52.720 --> 00:08:53.560 - I'd be happy to. 00:08:53.560 --> 00:08:54.780 - Thank you. 00:08:54.780 --> 00:08:57.420 - Since you're going out for so much engineering services, 00:08:57.420 --> 00:09:01.280 I wanted to find out if these services are attached 00:09:01.280 --> 00:09:04.140 to large scale planning projects. 00:09:04.140 --> 00:09:06.680 The last time I saw a prequel this big, 00:09:06.680 --> 00:09:10.440 it was for a $300 million bond project. 00:09:10.440 --> 00:09:14.640 So I'm assuming you have some demand for their services. 00:09:14.640 --> 00:09:17.520 I'd like to have some context for that. 00:09:17.520 --> 00:09:20.520 - Well, we have the Ray Roberts expansion. 00:09:20.520 --> 00:09:24.440 We have, you know, the expansion of our Pecan Creek 00:09:24.440 --> 00:09:26.520 water rec plant. 00:09:26.520 --> 00:09:30.200 We're gonna bring on two new rec plants in the near future. 00:09:30.200 --> 00:09:32.200 That's not really in the five year right now, 00:09:32.200 --> 00:09:36.640 but yeah, we have lots of large projects. 00:09:36.640 --> 00:09:40.160 - Okay, could you give us an overall dollar volume, 00:09:40.160 --> 00:09:41.280 time frame? 00:09:41.280 --> 00:09:44.960 I mean, just for the sake of discussion, 00:09:44.960 --> 00:09:47.520 I'm not asking for hard specifics, 00:09:47.520 --> 00:09:49.480 but just a general idea. 00:09:49.480 --> 00:09:54.360 - So, Mr. Rybeck, Stephen Gay, director of water utilities. 00:09:54.360 --> 00:09:55.600 We, as you're aware, we're going through 00:09:55.600 --> 00:09:57.100 the budget process right now. 00:09:57.100 --> 00:09:59.560 So we have a significant number of projects 00:09:59.560 --> 00:10:01.140 in the capital plan. 00:10:01.140 --> 00:10:04.880 Depending on how that unfolds with regards to the rates 00:10:04.880 --> 00:10:07.560 and different funding mechanisms and bonds, 00:10:07.560 --> 00:10:10.240 that's gonna really drive what projects get approved 00:10:10.240 --> 00:10:11.760 in the five year plan. 00:10:11.760 --> 00:10:15.040 Right now, we have a current one from the last fiscal 00:10:15.040 --> 00:10:17.040 23-24 budget cycle. 00:10:17.040 --> 00:10:19.640 It was a total, in the five year plan 00:10:19.640 --> 00:10:23.040 between water and wastewater was roughly $738 million 00:10:23.040 --> 00:10:24.940 of capital investment. 00:10:24.940 --> 00:10:27.520 So if that gives you, kind of paints that landscape for you. 00:10:27.520 --> 00:10:28.360 - That's kind of what I was looking for, 00:10:28.360 --> 00:10:30.440 some context to the demand for service. 00:10:30.440 --> 00:10:31.880 It's quite significant. 00:10:31.880 --> 00:10:32.720 - I thought so. 00:10:32.720 --> 00:10:33.560 - Yes, sir. 00:10:33.560 --> 00:10:34.960 (laughs) 00:10:34.960 --> 00:10:37.360 - Is there a component to that that is also 00:10:37.360 --> 00:10:39.320 planned maintenance and repair projects? 00:10:39.320 --> 00:10:42.480 You know, replacing aging equipment and that sort of thing? 00:10:42.480 --> 00:10:46.320 - Well, this is more for water and wastewater treatment 00:10:46.320 --> 00:10:51.320 vertical processes, like for instance, water rights, 00:10:51.320 --> 00:10:57.400 plant construction, you know, planning, emergency planning. 00:11:00.120 --> 00:11:05.120 So the list is more focused on, excuse me, 00:11:05.120 --> 00:11:10.280 the list is more focused on like, 00:11:10.280 --> 00:11:13.440 let me think here, sorry. 00:11:13.440 --> 00:11:16.680 Sorry, go ahead. 00:11:16.680 --> 00:11:17.500 (laughs) 00:11:17.500 --> 00:11:19.160 - That's okay, that's okay. 00:11:19.160 --> 00:11:21.920 So to answer your question, Mr. Rybeck, 00:11:21.920 --> 00:11:26.920 the projects do include some R&R. 00:11:26.920 --> 00:11:30.000 So as we're going through and say we're doing a plant, 00:11:30.000 --> 00:11:32.240 the plant expansion, part of that, 00:11:32.240 --> 00:11:34.180 we've taken a look at the condition 00:11:34.180 --> 00:11:35.960 of the existing facilities and say, 00:11:35.960 --> 00:11:38.560 is there an opportunity while we're mobilized 00:11:38.560 --> 00:11:41.000 to do this expansion to address some of our 00:11:41.000 --> 00:11:42.960 more critical needs at that site? 00:11:42.960 --> 00:11:45.040 So we do fold those into the capital plan. 00:11:45.040 --> 00:11:47.160 - Okay, 'cause it seemed like we recently approved something 00:11:47.160 --> 00:11:51.520 that was a repair project, a filter media replacement 00:11:51.520 --> 00:11:53.320 or something, it was reasonably substantial. 00:11:53.320 --> 00:11:54.400 - Yes, sir, yes, sir. 00:11:54.400 --> 00:11:55.520 - Okay. 00:11:55.520 --> 00:11:56.360 Well, very good, thank you. 00:11:56.360 --> 00:11:58.200 That's kind of what I wanted, some context 00:11:58.200 --> 00:11:59.640 for the request for service. 00:11:59.640 --> 00:12:00.480 - Thank you. 00:12:00.480 --> 00:12:02.040 - Understood. 00:12:02.040 --> 00:12:03.660 - Any further questions? 00:12:03.660 --> 00:12:08.000 Okay, do we have a motion to approve item A? 00:12:08.000 --> 00:12:08.840 - So moved. 00:12:08.840 --> 00:12:09.680 - Thank you, Mr. Rybeck. 00:12:09.680 --> 00:12:11.000 And seconded by Mr. Cheek. 00:12:11.000 --> 00:12:12.120 All in favor, say aye. 00:12:12.120 --> 00:12:13.760 - Aye. 00:12:13.760 --> 00:12:17.960 - All right, now onto PUB 24-046. 00:12:17.960 --> 00:12:22.480 - 41. 00:12:22.480 --> 00:12:23.320 - 41. 00:12:23.320 --> 00:12:24.520 No, 40, no, we did the approval. 00:12:24.520 --> 00:12:25.360 - We already did minutes? 00:12:25.360 --> 00:12:26.200 - We already did minutes, yeah. 00:12:26.200 --> 00:12:28.440 - Y'all are too fancy, you got two votes in there. 00:12:28.440 --> 00:12:30.680 (laughing) 00:12:30.680 --> 00:12:36.560 - You're up. 00:12:36.560 --> 00:12:42.680 - Good morning, members of the PUB. 00:12:42.680 --> 00:12:44.720 I'm Randy Key, Tate Municipal Electric, 00:12:44.720 --> 00:12:46.320 electric engineering supervisor. 00:12:46.320 --> 00:12:51.400 All right, bringing forward a contract 00:12:51.400 --> 00:12:54.040 for distribution manual and automated equipment. 00:12:56.100 --> 00:12:59.800 This RFP is for the supply of medium voltage, 00:12:59.800 --> 00:13:01.320 manual and automated equipment. 00:13:01.320 --> 00:13:05.340 It's for our trip savers, reclosers, switch gears. 00:13:05.340 --> 00:13:10.040 These items are critical for our daily operation. 00:13:10.040 --> 00:13:13.240 This equipment allows DME to switch distribution load 00:13:13.240 --> 00:13:14.400 and isolate faults. 00:13:14.400 --> 00:13:18.360 The main things that I wanna go over is, 00:13:18.360 --> 00:13:20.320 everybody knows the supply chain. 00:13:20.320 --> 00:13:21.960 These items have been hit. 00:13:21.960 --> 00:13:25.180 We do see a one to anywhere from five years for lead times. 00:13:26.600 --> 00:13:29.060 Along with the 50% increase in price, 00:13:29.060 --> 00:13:33.320 these items are funded from our warehouse capital budget 00:13:33.320 --> 00:13:35.820 and these assets are managed in-house at DME. 00:13:35.820 --> 00:13:39.760 These are our estimated spend. 00:13:39.760 --> 00:13:42.680 We're looking at 5.4 million a year. 00:13:42.680 --> 00:13:44.900 With a total of 30 million, 00:13:44.900 --> 00:13:49.240 we did add a three million contingency. 00:13:49.240 --> 00:13:52.240 And we recommend approving this contract with ERBY. 00:13:54.040 --> 00:13:57.100 And at this time, I'll take any questions you have. 00:13:57.100 --> 00:13:58.040 - Questions. 00:13:58.040 --> 00:14:00.400 Mr. Rybick. 00:14:00.400 --> 00:14:04.160 - I noticed in your pricing evaluation sheet 00:14:04.160 --> 00:14:07.980 that's a little bit more than the 5.4 million a year. 00:14:07.980 --> 00:14:09.040 (laughs) 00:14:09.040 --> 00:14:11.040 I was curious how you divided that up. 00:14:11.040 --> 00:14:17.200 - We estimated our 5.4 million on years past 00:14:17.200 --> 00:14:20.760 and we went up a little bit just because of, 00:14:20.760 --> 00:14:22.720 if we need it for the next two physical years, 00:14:22.720 --> 00:14:24.320 we need to purchase it this year. 00:14:24.320 --> 00:14:28.160 So that's where our 5.4 came from. 00:14:28.160 --> 00:14:29.880 - Okay, well, I just noticed some of these items 00:14:29.880 --> 00:14:32.320 were a little bit more expensive than that. 00:14:32.320 --> 00:14:33.160 - They are. 00:14:33.160 --> 00:14:33.980 - Yeah. 00:14:33.980 --> 00:14:38.160 That has been our life since 2020. 00:14:38.160 --> 00:14:40.080 - That way your budget carries over to this year 00:14:40.080 --> 00:14:41.480 and the next year. 00:14:41.480 --> 00:14:42.360 - Yes, sir. 00:14:42.360 --> 00:14:43.780 - Any further questions? 00:14:43.780 --> 00:14:47.520 Do we have a motion to approve this item? 00:14:47.520 --> 00:14:50.080 Mr. Rybick's moving. 00:14:52.480 --> 00:14:53.320 - Thank you. 00:14:53.320 --> 00:14:54.140 - Mr. Taylor seconds. 00:14:54.140 --> 00:14:54.980 All in favor? 00:14:54.980 --> 00:14:55.820 - Aye. 00:14:55.820 --> 00:14:58.600 - And it's reading the courts. 00:14:58.600 --> 00:14:59.440 - Thank you. 00:14:59.440 --> 00:15:05.840 - So Madam Chair, members of the PUB, 00:15:05.840 --> 00:15:08.300 so we do have a few items for you. 00:15:08.300 --> 00:15:12.520 The first item is just a listing of the items 00:15:12.520 --> 00:15:14.080 that had come to the PUB, 00:15:14.080 --> 00:15:16.480 but as you know, we didn't have a quorum. 00:15:16.480 --> 00:15:17.480 I did talk with the Chair 00:15:17.480 --> 00:15:20.180 and we did push those forward to the City Council. 00:15:20.180 --> 00:15:21.500 We've listed those out for you. 00:15:21.500 --> 00:15:25.660 The backup is online, both on the archive information 00:15:25.660 --> 00:15:27.080 for the PUB and also for the Council. 00:15:27.080 --> 00:15:30.120 If you have any questions, Lori and her team are here. 00:15:30.120 --> 00:15:32.160 I think we still have some staff members here 00:15:32.160 --> 00:15:34.360 if there's any questions on any of those items. 00:15:34.360 --> 00:15:36.800 But they were all approved by the City Council. 00:15:36.800 --> 00:15:37.640 - All right. 00:15:37.640 --> 00:15:39.440 No questions. 00:15:39.440 --> 00:15:43.840 - We don't blame you, Billy. 00:15:43.840 --> 00:15:45.920 - Life happens. 00:15:45.920 --> 00:15:49.560 - So the next item is just future agenda items. 00:15:49.560 --> 00:15:53.880 We did list on here for March 11th, 00:15:53.880 --> 00:15:58.680 we will be coming to the PUB per the Council's direction. 00:15:58.680 --> 00:16:01.240 We also had a riveting presentation ready for you 00:16:01.240 --> 00:16:03.840 at the last meeting and we didn't have a quorum. 00:16:03.840 --> 00:16:07.080 So we went forward to the Council, we presented. 00:16:07.080 --> 00:16:08.120 - It was riveting. 00:16:08.120 --> 00:16:08.960 - It was riveting. 00:16:08.960 --> 00:16:13.960 So we did present to the City Council on the DME budget, 00:16:13.960 --> 00:16:17.700 received direction from the Council basically on three items. 00:16:17.700 --> 00:16:20.840 One is to finance a little bit over $31 million 00:16:20.840 --> 00:16:21.680 over five years. 00:16:21.680 --> 00:16:25.680 This was related to purchase power expenses in the summer. 00:16:25.680 --> 00:16:28.880 And also a recommendation to kind of get back 00:16:28.880 --> 00:16:31.840 to managing the fund the way it was intended 00:16:31.840 --> 00:16:35.620 with an ECA and a TCRF that recovers appropriately. 00:16:35.620 --> 00:16:39.000 We'll be bringing that particular item on the ECA and TCRF 00:16:39.000 --> 00:16:42.560 back to the Board here with a revision 00:16:42.560 --> 00:16:45.800 to the rate ordinance that will then go to Council 00:16:45.800 --> 00:16:49.080 for further consideration approval on the 19th. 00:16:49.080 --> 00:16:52.320 And so that's what we have for you today. 00:16:52.320 --> 00:16:54.580 Obviously we have a number of items, 00:16:54.580 --> 00:16:57.040 budgetary items that will be coming to you 00:16:57.040 --> 00:17:01.600 as part of the normal course of the budget process. 00:17:01.600 --> 00:17:05.440 And then the next item is just new business. 00:17:05.440 --> 00:17:08.140 We've completed the very first item that you have on here 00:17:08.140 --> 00:17:10.260 on the third party software, 00:17:10.260 --> 00:17:13.120 still kind of working through the cost analysis 00:17:13.120 --> 00:17:16.120 on some information that was requested on the criteria 00:17:16.120 --> 00:17:20.080 manuals, we'll be working with the Post Development Services 00:17:20.080 --> 00:17:24.640 to provide you a memorandum on that particular topic. 00:17:24.640 --> 00:17:27.720 And then the item on relate to fleet, 00:17:27.720 --> 00:17:29.000 obviously we still have some time on that 00:17:29.000 --> 00:17:30.840 to continue to evaluate that. 00:17:30.840 --> 00:17:33.000 And before I kind of turn over for any questions, 00:17:33.000 --> 00:17:34.080 just have a couple of other items 00:17:34.080 --> 00:17:37.040 wanted to kind of inform you about. 00:17:37.040 --> 00:17:42.040 One, just a request and just a reminder about TOMA. 00:17:43.360 --> 00:17:47.800 If you are sending emails to staff or to each other, 00:17:47.800 --> 00:17:49.840 please make sure that you blind copy each other 00:17:49.840 --> 00:17:52.840 so that we don't get into any kind of TOMA violations. 00:17:52.840 --> 00:17:54.400 I don't have any questions about that. 00:17:54.400 --> 00:17:57.420 Marcel, I can certainly talk about that some more. 00:17:57.420 --> 00:18:01.600 The other item that also went to Council last week 00:18:01.600 --> 00:18:05.240 was related to an RFP that we did related 00:18:05.240 --> 00:18:08.400 to a Bitcoin miner, the Council did give us approval 00:18:08.400 --> 00:18:13.280 to proceed, the specific RFP award, PPA lease, 00:18:13.280 --> 00:18:15.840 we'll be coming to the board when that is ready. 00:18:15.840 --> 00:18:17.720 And so I didn't wanna let you know that that was an item 00:18:17.720 --> 00:18:19.420 that did go to the Council. 00:18:19.420 --> 00:18:23.420 Was that originally coming here for a variety of reasons, 00:18:23.420 --> 00:18:27.360 but Council gave us direction to continue to negotiate. 00:18:27.360 --> 00:18:30.000 Once that is ready, we will bring that to you. 00:18:30.000 --> 00:18:33.760 So with that, that's the update that I have, 00:18:33.760 --> 00:18:35.840 certainly happy to answer any questions you may have. 00:18:35.840 --> 00:18:36.680 - Go ahead. 00:18:36.680 --> 00:18:39.240 - So with the Bitcoin going to the Council, 00:18:39.240 --> 00:18:40.760 then they're gonna be bringing back the lease. 00:18:40.760 --> 00:18:43.400 Is this gonna be a foregone conclusion 00:18:43.400 --> 00:18:46.560 as far as us to just give it the vote and go on, 00:18:46.560 --> 00:18:48.880 or can there be changes made at that point, 00:18:48.880 --> 00:18:51.800 or are we gonna be stepping on some toes with the Council? 00:18:51.800 --> 00:18:56.040 - No, I think the Council, like with all the other items, 00:18:56.040 --> 00:18:58.680 wants the board to provide them advice. 00:18:58.680 --> 00:19:01.120 And so certainly they'll take that into consideration 00:19:01.120 --> 00:19:02.680 on their final decision, 00:19:02.680 --> 00:19:04.960 whether or not to approve the PPA or the lease. 00:19:04.960 --> 00:19:06.200 - Thank you. - Yes, sir. 00:19:07.080 --> 00:19:10.280 - So, excuse me, I've got a comment, 00:19:10.280 --> 00:19:14.480 and it's mostly on the ECA, the way we, 00:19:14.480 --> 00:19:16.840 I like the direction that we've gone. 00:19:16.840 --> 00:19:18.400 I think it's more open, 00:19:18.400 --> 00:19:21.180 which is what everybody says they're trying to get. 00:19:21.180 --> 00:19:27.720 There's a huge discussion going on with neighborhoods 00:19:27.720 --> 00:19:30.080 and HOAs from people who don't understand 00:19:30.080 --> 00:19:34.200 the difference between the prices. 00:19:34.200 --> 00:19:36.760 And so if our mainline price 00:19:36.760 --> 00:19:39.040 seems much higher than everyone else's, 00:19:39.040 --> 00:19:42.080 the other guys aren't telling them 00:19:42.080 --> 00:19:43.800 that the ECA rate is variable, right? 00:19:43.800 --> 00:19:45.760 I mean, it varies. 00:19:45.760 --> 00:19:49.760 And I hope we can continue to get education out there 00:19:49.760 --> 00:19:50.600 and talk to people. 00:19:50.600 --> 00:19:55.600 Are you seeing a lot of feedback from folks about costs? 00:19:55.600 --> 00:19:57.720 - No, I'm not. 00:19:57.720 --> 00:19:59.360 And certainly there's a number of other things 00:19:59.360 --> 00:20:01.560 that may be kind of eclipsing that. 00:20:01.560 --> 00:20:05.080 But I'll tell you, we try to present the information 00:20:05.080 --> 00:20:08.600 in terms of an average user of 1,000 kilowatts, 00:20:08.600 --> 00:20:12.840 and then we back into what the cents per kilowatt is. 00:20:12.840 --> 00:20:16.680 Currently, we're at 10.7 cents per kilowatt. 00:20:16.680 --> 00:20:21.000 Our review in the private sector, 00:20:21.000 --> 00:20:24.720 you're looking at a 12-month contract north of 15 cents. 00:20:24.720 --> 00:20:28.440 And so where we are today compared to where 00:20:28.440 --> 00:20:30.920 other providers are, certainly other MOUs, 00:20:30.920 --> 00:20:34.840 we're certainly the cheapest, where we will be, 00:20:34.840 --> 00:20:38.480 just from the changes on the ECA TCRF, 00:20:38.480 --> 00:20:42.160 by fiscal year '25, we'll be at 13 cents per kilowatt hours. 00:20:42.160 --> 00:20:44.880 We're still considerably less than where 00:20:44.880 --> 00:20:47.200 those other providers are currently at. 00:20:47.200 --> 00:20:49.200 We're not even assuming other increase 00:20:49.200 --> 00:20:51.360 that they're gonna continue to be doing. 00:20:51.360 --> 00:20:54.200 They certainly are faced with the same type 00:20:54.200 --> 00:20:56.640 of escalating prices on power, 00:20:56.640 --> 00:20:58.960 and as you've seen, even with equipment. 00:20:58.960 --> 00:21:01.040 And so we anticipate that they'll continue 00:21:01.040 --> 00:21:03.040 to increase as well, just like they have 00:21:03.040 --> 00:21:04.760 over the last almost seven years 00:21:04.760 --> 00:21:08.000 where DME has been flat on its rates. 00:21:08.000 --> 00:21:11.440 - Well, the other guys don't have to follow 00:21:11.440 --> 00:21:14.680 the same rules that we do, or they don't, 00:21:14.680 --> 00:21:16.920 even if they're supposed to, but you know what I'm saying? 00:21:16.920 --> 00:21:20.520 I mean, in the past, we have done some things in ECA 00:21:20.520 --> 00:21:22.400 that I think shouldn't have been there, 00:21:22.400 --> 00:21:24.200 and I think you're trying to correct those things, 00:21:24.200 --> 00:21:25.300 and I appreciate that. 00:21:26.960 --> 00:21:30.000 But the other folks, you know, I mean, 00:21:30.000 --> 00:21:32.480 they're calling on the phone to make a sales job, 00:21:32.480 --> 00:21:35.720 and so we don't get to compete with that. 00:21:35.720 --> 00:21:37.280 So dumbing it down a little bit, 00:21:37.280 --> 00:21:38.640 I'm sorry for that expression, 00:21:38.640 --> 00:21:42.320 but I need things dumbed down for me, a lot of things. 00:21:42.320 --> 00:21:45.280 I mean, just for the general public to understand. 00:21:45.280 --> 00:21:47.360 - Yeah, make it understandable to the general public. 00:21:47.360 --> 00:21:48.880 - They're being more transparent, 00:21:48.880 --> 00:21:50.880 and that's the right way to do things, 00:21:50.880 --> 00:21:54.200 and I mean, anyway. 00:21:54.200 --> 00:21:57.880 - It's out there, it's a lot of social media going on, 00:21:57.880 --> 00:21:58.720 a lot of people in discussion, 00:21:58.720 --> 00:22:00.720 and I try not to jump in the middle of it 00:22:00.720 --> 00:22:03.400 unless I know the person, so. 00:22:03.400 --> 00:22:07.040 - I received more emails in the last few days 00:22:07.040 --> 00:22:09.600 about Bitcoin mining than I have about our rates, 00:22:09.600 --> 00:22:14.120 and so, so yeah, so, and I may have more today, but-- 00:22:14.120 --> 00:22:15.240 - Yeah, I'm sure you will. 00:22:15.240 --> 00:22:19.240 - I promise you, mining, it's here to stay. 00:22:19.240 --> 00:22:22.600 - All right, any other discussion? 00:22:22.600 --> 00:22:23.440 Yes, go ahead. 00:22:23.440 --> 00:22:25.400 - I do would like clarification on the comment 00:22:25.400 --> 00:22:28.840 about the emails, just for my own understanding. 00:22:28.840 --> 00:22:32.240 So if I send an email to the chair, 00:22:32.240 --> 00:22:37.160 I copy other folks, I should be blind copying them? 00:22:37.160 --> 00:22:38.880 I mean, was that the implication? 00:22:38.880 --> 00:22:40.600 - So the idea of blind copying 00:22:40.600 --> 00:22:42.680 is so that you don't accidentally reply all, 00:22:42.680 --> 00:22:43.920 'cause that's the problem, 00:22:43.920 --> 00:22:45.360 is when you have public officials 00:22:45.360 --> 00:22:47.600 who are on an email that you reply all to, 00:22:47.600 --> 00:22:49.360 you're creating a walking quorum. 00:22:49.360 --> 00:22:52.600 - A walking quorum? 00:22:52.600 --> 00:22:57.120 - Yes, so when you email me and you copy Tony and Kim, 00:22:57.120 --> 00:22:59.120 no violation, none. 00:22:59.120 --> 00:23:00.960 If you do a reply to all, 00:23:00.960 --> 00:23:03.880 and we're all included on that email. 00:23:03.880 --> 00:23:05.320 - Okay. 00:23:05.320 --> 00:23:07.640 - Most of the time, it's innocent, but-- 00:23:07.640 --> 00:23:08.960 - Yeah. - Sometimes it hasn't been. 00:23:08.960 --> 00:23:10.480 - Yeah. - Well, let me just, 00:23:10.480 --> 00:23:13.120 that's the next question, I've done this multiple times. 00:23:13.120 --> 00:23:17.120 If I send an email to you, 00:23:17.120 --> 00:23:19.880 I always copy Billy since he's the vice chair, 00:23:19.880 --> 00:23:21.080 and I think that's appropriate 00:23:21.080 --> 00:23:23.600 in case you're not available, don't get it. 00:23:23.600 --> 00:23:26.520 And then of course, Tony and Kim, 00:23:26.520 --> 00:23:29.720 so that they can alert or coordinate 00:23:29.720 --> 00:23:32.520 or whatever needs to be done with the question at hand. 00:23:32.520 --> 00:23:34.280 So is that appropriate? 00:23:34.280 --> 00:23:36.120 - So that is three members. 00:23:36.120 --> 00:23:38.800 The minute it gets to four, it creates a walking quorum. 00:23:38.800 --> 00:23:40.240 - Oh, okay. - So the concern is 00:23:40.240 --> 00:23:42.480 that if you were to add someone later on in the chain, 00:23:42.480 --> 00:23:45.960 or you were to reply all and add another commissioner, 00:23:45.960 --> 00:23:47.800 then you would create that walking quorum. 00:23:47.800 --> 00:23:49.600 - Okay, well that helps me understand that. 00:23:49.600 --> 00:23:51.520 Thank you very much. - You're welcome, all right. 00:23:51.520 --> 00:23:53.080 - Just for instance, like I went, 00:23:53.080 --> 00:23:55.080 Arts and Jazz Festival year, I remember walking up 00:23:55.080 --> 00:23:58.040 and there was three council members standing there 00:23:58.040 --> 00:23:59.200 trying to get up Shinerbock, 00:23:59.200 --> 00:24:01.640 and one more walked up behind me, 00:24:01.640 --> 00:24:03.480 and they were like, "Whoa, we can't be here." 00:24:03.480 --> 00:24:05.440 (all laughing) 00:24:05.440 --> 00:24:07.600 - So that fourth one had to wait for his Shinerbock. 00:24:07.600 --> 00:24:09.760 - That's right. - Or hers, yeah, okay. 00:24:09.760 --> 00:24:13.000 That would be a problem. 00:24:13.000 --> 00:24:14.960 - Yeah, oh my gosh. 00:24:14.960 --> 00:24:17.160 Only if Shinerbock is public business. 00:24:17.160 --> 00:24:18.880 (all laughing) 00:24:18.880 --> 00:24:20.360 - Yeah, just for clarification, Mr. Rybak, 00:24:20.360 --> 00:24:22.200 that wasn't directed at your emails. 00:24:22.200 --> 00:24:24.600 And so we see that-- - You can raise 00:24:24.600 --> 00:24:27.080 the question in my mind. - Yes, sir, yes, sir. 00:24:27.080 --> 00:24:29.600 - You know, process-wise, am I doing this correctly? 00:24:29.600 --> 00:24:31.520 Now that I understand the concern 00:24:31.520 --> 00:24:34.240 that it's the walking quorum, it makes sense. 00:24:34.240 --> 00:24:35.080 - Right. 00:24:35.080 --> 00:24:37.480 Madam Chair, that's all I have. 00:24:37.480 --> 00:24:39.840 - All right, any other discussion? 00:24:39.840 --> 00:24:41.240 On to concluding items. 00:24:41.240 --> 00:24:44.040 Does any board member wish to say anything to the public 00:24:44.040 --> 00:24:45.960 or add something to a future agenda? 00:24:48.120 --> 00:24:49.360 Seeing none. 00:24:49.360 --> 00:24:51.280 Billy, do we have a motion to adjourn? 00:24:51.280 --> 00:24:53.160 924. - Adjourned. 00:24:53.160 --> 00:24:55.000 - All right, we're adjourned. 00:24:55.000 --> 00:24:56.680 - Do we have any questions?