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 We're going to open the City of Denton meeting agenda for the Public Utility Board meeting

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 of Monday, April 8th, 2024.

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 It is 9 a.m., and we are going to start.

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 Are there any members from the public?

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 Did anybody sign up to speak on any items?

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 Okay.

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 We will move on into our regular meeting.

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 It is Eclipse Day.

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 Great note.

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 We're going into the Consent Agenda.

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 Would anybody like to pull any items from the Consent Agenda?

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 Well, I'd like to pull item A.

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 Okay, if there are no other items to be pulled, then we will entertain a vote on items B,

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 C, and D.

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 So moved.

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 There's a motion, and a second from Lee.

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 All those in favor, please say aye.

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 Aye.

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 Any opposed?

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 None.

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 Okay.

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 It passes unanimously.

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 Item A.

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 Good morning.

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 Good morning.

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 Trevor Crane, Director of Capital Projects.

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 Okay.

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 So we went for -- we started out with a 1.6.

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 Is that correct?

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 That sounds correct.

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 Yes, sir.

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 Okay.

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 And now we're going to 2.8.

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 Sure.

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 So this is for the Pecan Creek 3 and 4 project.

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 Older project was designed to about 90 percent, and then it was included as a part of the

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 2023 bond.

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 So this amount is to bring those plans up to speed from the last time they were touched,

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 which was probably two to three years ago.

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 Bring them up to speed, include all the drainage studies that have to be done, and then bring

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 those plans up to 100 percent so that we can move to construction.

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 Where is this under our budget?

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 Was it approved under our budget?

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 It was included as a part of the 2023 bond, so that number that's being approved now was

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 a part of the money that was included in that number that got approved by the bond.

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 Do you recall what that number was?

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 I don't remember off the top of my head, but if you give me a few minutes, I'll let you

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 know before I leave.

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 Okay.

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 I have a question, Mr. Chairman.

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 Well, just from my information, the bond isn't paying for this engineering and design work.

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 Is it separate, or are we just approving its expenditure under the bond, or requesting

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 the council to do so?

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 So the number that's being approved now was a part of the total number that was approved

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 as a part of the bond.

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 So we included this piece that would bring us up to 100 percent, and then have construction

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 plans ready to go.

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 But this money is coming from the bond.

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 Correct.

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 It's not coming from some other--

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 Yes.

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 --PUB budget.

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 No, it's coming from the 2023 bond.

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 Okay.

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 All right, so yeah, that was my only question was, I mean, I understand that it's been sitting

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 on the shelf for a little bit, and we're getting back to it, right?

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 Yes, sir.

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 That's basically where we are, and so I realize that we are running over budget on a lot of

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 items due to the general economy.

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 Just the nature of it.

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 Yes, sir.

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 In the business.

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 Yes.

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 Okay.

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 Well, I'll move on from there and move for approval.

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 Thank you.

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 Thank you, Trevor.

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 Mr. Chairman, do you have a second?

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 Yep.

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 Okay.

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 Got a second from Lee.

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 All those in favor, please say aye.

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 Aye.

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 Aye.

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 All those in favor, please say aye.

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 Aye.

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 There are none.

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 Passes unanimously.

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 Thank you.

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 Individual consideration.

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 Consider approval of the minutes for March 25, '24.

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 Anyone?

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 So moved by Mr. Pluck.

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 There's a second.

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 Minutes.

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 Can I get a second?

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 Oh, do you need a second?

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 I need a second.

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 I got a second from Rob.

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 Thank you.

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 Fixing to get medieval.

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 Okay, we have a motion and a second.

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 All those in favor, please say aye.

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 Aye.

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 None opposed.

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 All right.

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 Item B for individual consideration.

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 Consider recommending adoption of an ordinance of the City of Dinton, Texas Home Rule Corporation,

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 amending the city's water conservation and drought contingency plan previously adopted

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 by the City Council on Ordinance Number 19-863, enacted on April 16, 2019, providing an effective

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 date.

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 Hey, good morning, y'all.

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 My name is Haley Salazar.

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 I'm here with Denton Water Utilities to provide an overview on the updates we've done for

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 our drought conservation, our drought contingency and water conservation plan.

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 So as y'all know, water security is very possible in Texas, but we do have to work a little

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 bit harder than some other places.

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 Thankfully, though, we have a lot of support from the Texas Water Development Board, as

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 well as the TCEQ, or the Texas Commission on Environmental Quality, and one of the ways

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 they support us is they enforce that utilities such as ours or other water providers maintain

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 a water conservation and drought contingency plan.

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 This is a document, and it's a little confusing the way it's named.

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 It's called the Water Conservation Plan, but it actually is comprised of both our conservation

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 plan, which is the everyday way we utilize water efficiently in our operations, as well

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 as our end-users.

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 It also contains our drought contingency plan that details the way we're going to use water

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 in the event that water security is somewhat compromised due to weather events, drought,

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 and whatnot.

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 So we do have to update this document every five years.

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 They like us to kind of look at it and modernize it and make sure that it's up to date.

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 And so this is what we're doing right now.

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 We put an informal staff report out last Friday.

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 We're here today.

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 We'll be going to council on the 16th, and all of these steps are to get us to our end

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 goal of submitting our update by the 1st of May to the TCEQ and the Texas Water Development

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 Board.

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 We have thoroughly reviewed the documents, and in just a little bit, I'll kind of go

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 into what that entailed, but from the public standpoint, there's really one major change

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 that we're going to see, and that we are finally catching up with the rest of the Metroplex

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 and implementing a watering schedule.

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 So this is a two-day-a-week irrigation schedule.

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 Again, the rest of the Metroplex already does this, so this is for consistency.

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 And just to clarify, if y'all are already familiar with our summer watering ordinance,

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 that's something we have in place regardless as to how much or how little water falls from

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 the sky, but it says that we cannot water from June 1st through September 30th from

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 10 a.m. to 6 p.m., and that's going to help prevent scorching of grass and evaporation

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 and other things like that.

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 That's still in place, so this two-day-a-week schedule is on top of that.

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 A little bit of background about this plan.

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 It's nothing new.

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 We've actually had it in place for almost 20 years now, and on regular update cycles,

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 we've approved it in 2005, '09, 2014, and 2019.

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 What's interesting, though, again, the plan being kind of comprised of both our conservation

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 everyday strategies and our drought contingency portion, we've actually never had to enact

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 our drought contingency plan.

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 We came very close in 2014.

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 If y'all remember, that was the end of a very scary seven-year drought of record, but then

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 the sky kind of fell in with our historic 68 inches of rain in 2015, so we didn't have

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 to enact it, so that was a supply-based almost.

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 We had a demand-based almost last year.

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 In 2023, our demands got very, very close to our capacity or our ability to produce

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 water.

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 In just a moment, I'll kind of walk through what that framework is, but all that said

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 is it's been a bit of a luxury for us that we haven't had to enact the plan yet.

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 Yes, sir?

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 What time of year did that occur?

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 That was August.

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 So peaks only?

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 Yes, sir.

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 Thank you.

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 Yes.

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 Actually, I appreciate that question, because putting just some guidelines when it comes

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 to irrigation during that peak time is going to be that conservation portion that helps

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 us kind of stave off accidentally entering into a drought scenario when we really don't

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 have to.

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 So it's just kind of providing that guidance during that peak time, but y'all are aware

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 our population is growing, and with our population growth, our water supplies are the same.

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 So we're just having to get a little bit more creative and analytical with the way we build

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 our water portfolio and manage our water.

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 With that population growth and then the variability we're seeing in the weather patterns compared

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 to years past, it's kind of possible that we're going to enact the drought contingency

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 plan at some point.

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 So what we did was we looked at the drought contingency plan, and we reviewed all the

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 different measures in place that if we're in that situation, we do X. And we sat down

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 with the different departments, and we said, "Hi, are y'all aware you're on the hook

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 for this?"

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 Again, it's a five-year update, and we've had some turnover.

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 So we wanted to make sure there were processes in place for all the different items.

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 The departments were ready, and this wasn't a scramble in the event.

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 We had to.

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 So we also gave them the opportunity, all the different departments, to say, "Is this

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 feasible or not?

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 Is this something we need to talk through?"

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 Luckily, all the strategies were considered feasible, and now we know for a fact we have

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 processes to support them.

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 So in the event we enter a drought situation, we're ready to go.

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 So that said, with the likelihood of having to enact the plan soon, we're in a good place.

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 Additionally, the conservation portion of the plan, those everyday strategies, the way

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 we manage water, most of these are internal strategies.

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 So we have a very active leak detection.

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 We keep our water meters up to date.

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 We've invested in new equipment.

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 We're really doing a lot on the operation side to ensure that we're doing everything

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 we can, and then, again, from the customer side, it's that irrigation schedule rolling

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 out during those peak times to conserve resources.

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 When we say drought, one of my favorite things about the drought conservation plan is it's

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 not subjective.

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 We have very defined measures in place that say what exactly constitutes a drought situation,

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 how can we get into a drought situation, and how severe is it?

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 What parts of the plan do we need to enact based on what's going on in our environment?

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 So before I talk through the little drought contingency chart, y'all might already be

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 aware, but there's a little graph that has a dam, and it says reservoir, flood control,

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 storage pool.

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 When we're talking about lake levels, we're looking at that middle zone that says conservation

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 storage pool.

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 So when we say lakes are at 65%, it's that top yellow line between flood control and

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 conservation pool, that's that 100% line, and 65%, 50% is as it relates to that line

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 there.

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 So there are several things that can cause a drought scenario.

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 Supply, we have very little control over that.

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 That's the rainfall and the levels of the lake.

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 We've got demand, that's our customer use, where we do have some control, and we're hoping

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 to make the most of that with the implementation of the irrigation schedule.

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 And then operational, this is something we don't ever want to see, but operational could

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 be an act of terror on our SCADA system, contamination of the water, major failure with some equipment,

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 although we do maintain a very aggressive maintenance schedule, and we have some redundancies

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 in place to ensure that we don't have equipment failure, but it is still something that we

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 want to be prepared for just in case.

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 So we've got supply, demand, and operational are the reasons we could have a drought scenario,

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 and then we've got different stages within those scenarios that dictate how strict our

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 control measures are going to be.

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 We've got mild, moderate, severe, and again, that's when our supply dips down to 65%, 50%,

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 or 35% of that conservation pool.

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 Demand.

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 So we are able to currently produce 50 million gallons of potable water per day.

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 If we get close to that 50 million gallon mark, we start to roll out mitigation measures

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 to decrease usage patterns.

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 When we hit 85% of that, or 42.5 million gallons of day, for four days in a row on the demand

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 side, we start to put restrictions in place, and as you can see in the chart, that escalates

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 as we use more for a shorter increment, and that's just to make sure we preserve those

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 supplies.

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 Operational, because that's such an unknown in terms of the severity of the impact of

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 the operational failure, you could catapult instantly into any of those stages, but again,

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 we have a lot of maintenance measures in place to ensure that doesn't happen.

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 But all that said, it is really nice to know we've got exact steps in order vetted with

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 all the departments as we head into this summer in very, very detailed, defined criteria that

247
00:13:54,720 --> 00:13:59,940
 say where are we, and what exactly do we need to do to preserve our water supply at this

248
00:13:59,940 --> 00:14:02,940
 point in time.

249
00:14:02,940 --> 00:14:04,760
 Yes, sir.

250
00:14:04,760 --> 00:14:13,640
 We have additional water coming online through our bond program, construction, future development.

251
00:14:13,640 --> 00:14:19,200
 At what point in time do we anticipate those being online?

252
00:14:19,200 --> 00:14:26,400
 I believe they're going to start to come online in 2027 for an additional 20-MGT.

253
00:14:26,400 --> 00:14:27,400
 Thank you.

254
00:14:27,400 --> 00:14:28,400
 Yes.

255
00:14:28,400 --> 00:14:34,120
 So yes, and to your point, when we look at that middle row that says demand, that's going

256
00:14:34,120 --> 00:14:42,560
 to change those numbers, obviously, when we're able to produce that additional supply.

257
00:14:42,560 --> 00:14:49,160
 So as far as irrigation schedule goes, we have looked at a lot of best practices.

258
00:14:49,160 --> 00:14:53,200
 When it comes to irrigation management, we want to ensure that the irrigation schedule

259
00:14:53,200 --> 00:14:58,040
 is spaced out in a manner that helps people preserve their landscaping, even though we're

260
00:14:58,040 --> 00:15:01,480
 restricting the days that they can irrigate.

261
00:15:01,480 --> 00:15:08,000
 So we've got even addresses Tuesday and Saturday, odd addresses Wednesday and Sunday, and then

262
00:15:08,000 --> 00:15:11,800
 our commercial and multifamily will be Monday and Thursday.

263
00:15:11,800 --> 00:15:16,480
 Again, our annual summer watering ordinance, that's still going to be in effect during

264
00:15:16,480 --> 00:15:19,480
 June 1st through September 30th.

265
00:15:19,480 --> 00:15:23,720
 As we decided on the schedule, we looked at what the rest of the Metroplex was doing.

266
00:15:23,720 --> 00:15:28,320
 We were one of the last ones that didn't have an irrigation schedule, but we're still pretty

267
00:15:28,320 --> 00:15:30,720
 generous with our irrigation schedule.

268
00:15:30,720 --> 00:15:36,120
 For example, Frisco just proposed absolutely no irrigation in the winter, one day a week

269
00:15:36,120 --> 00:15:43,280
 spring and fall, and one day a week recommended with an optional second week in the summer.

270
00:15:43,280 --> 00:15:48,880
 So additionally, a lot of other cities in the Metroplex, their watering ordinance that-

271
00:15:48,880 --> 00:15:51,920
 What's Frisco's water source?

272
00:15:51,920 --> 00:15:52,920
 LaVon?

273
00:15:52,920 --> 00:15:59,560
 No, they are, they purchased their water from a supply district.

274
00:15:59,560 --> 00:16:01,400
 The UT?

275
00:16:01,400 --> 00:16:02,400
 I believe so.

276
00:16:02,400 --> 00:16:03,400
 I can get that for you.

277
00:16:03,400 --> 00:16:04,400
 A fraternity?

278
00:16:04,400 --> 00:16:05,400
 I'm speculating right now.

279
00:16:05,400 --> 00:16:07,560
 I want to get you a precise answer, but we're-

280
00:16:07,560 --> 00:16:08,560
 Yeah, it is.

281
00:16:08,560 --> 00:16:09,560
 Okay.

282
00:16:09,560 --> 00:16:10,560
 Okay.

283
00:16:10,560 --> 00:16:16,040
 We're in a really good spot having our own water rights.

284
00:16:16,040 --> 00:16:20,840
 We are aware that this update is new.

285
00:16:20,840 --> 00:16:30,200
 It's going to be different, especially for our long-term Dentonites who have enjoyed access to irrigate at any point in time until now.

286
00:16:30,200 --> 00:16:34,880
 So we've done a couple things to help support the community the best we can.

287
00:16:34,880 --> 00:16:39,920
 If you all aren't familiar with Discuss Denton, it's a fantastic website run by our public affairs team,

288
00:16:39,920 --> 00:16:44,080
 where we've got project updates, initiative updates for things happening in the city.

289
00:16:44,080 --> 00:16:48,080
 And one of those pages on there is our Waterwise Denton page.

290
00:16:48,080 --> 00:16:54,600
 We've been updating it since last year, and we put our daily usage volumes every morning on that website.

291
00:16:54,600 --> 00:16:56,920
 And we also track the rainfall as well.

292
00:16:56,920 --> 00:17:04,920
 But we were really delighted last summer to see we're up to 1,300 different IP addresses have hit the website.

293
00:17:04,920 --> 00:17:07,320
 And I don't think it's because it's a fabulous website.

294
00:17:07,320 --> 00:17:13,280
 I think it's because we have a fabulous community that's really engaged and aware of our water situation.

295
00:17:13,280 --> 00:17:18,600
 And this way we let everyone know exactly what we used the day before so we can track, monitor, and see.

296
00:17:18,600 --> 00:17:24,040
 And if we have to roll out the drought contingency measures for any reason, it shouldn't be a surprise.

297
00:17:24,040 --> 00:17:31,040
 We've been able to see the trend lines going, and we just wanted to make sure that the public had access to all the information we have access to.

298
00:17:31,040 --> 00:17:35,080
 So please check that out, shameless plug, if you haven't gotten a chance to see that yet.

299
00:17:35,080 --> 00:17:37,560
 We also post conservation opportunities.

300
00:17:37,560 --> 00:17:45,480
 Our sustainability department does a fantastic job hosting classes for irrigation or conservation, and we promote those on there as well.

301
00:17:45,480 --> 00:17:51,840
 We're going to get an additional FTE on our team, and they're going to help engage the community.

302
00:17:51,840 --> 00:17:58,760
 So as we roll out the irrigation schedule, they are going to be receiving feedback from Engaged Denton.

303
00:17:58,760 --> 00:18:03,920
 I'm sure you all are familiar with that, our community input software.

304
00:18:03,920 --> 00:18:06,240
 And then also kind of driving through the community.

305
00:18:06,240 --> 00:18:08,080
 We're not going to be enforcing fines or anything.

306
00:18:08,080 --> 00:18:14,240
 We're going to be educating the first couple years this rolls out, because we don't want fines, we want water security.

307
00:18:14,240 --> 00:18:25,480
 Eventually, if we get to that point, we do have a pathway to roll fines out, but we really don't want to, and there's a lot of steps before we get there.

308
00:18:25,480 --> 00:18:29,080
 So we really want to educate, partner, and empower.

309
00:18:29,080 --> 00:18:34,680
 And we're partnering very closely with sustainability, and making sure that we have classes and

310
00:18:34,680 --> 00:18:37,400
 information that's very relevant to this update going out.

311
00:18:37,400 --> 00:18:42,920
 We're also putting significant investment in our reuse system.

312
00:18:42,920 --> 00:18:47,800
 Our reuse system is effluent, reuse effluent from the plant,

313
00:18:47,800 --> 00:18:53,000
 the concrete water reclamation plant, where we normally would discharge that water into the lake.

314
00:18:53,000 --> 00:18:56,080
 We clean it up and repurpose it for non-potable purposes.

315
00:18:56,080 --> 00:19:00,120
 So industrial uses and irrigation, that offsets the demand on our potable water.

316
00:19:00,120 --> 00:19:05,640
 We also have some rebate programs that we're hoping to enact to help support this.

317
00:19:05,640 --> 00:19:13,440
 So sprinklers, kind of sprinkler systems that have the weather-wise sensors.

318
00:19:13,440 --> 00:19:18,800
 And turf replacement programs are in the work, pending budget approval, to kind of help the community as well.

319
00:19:18,800 --> 00:19:25,280
 And then we also have a lot of alternative supply strategies that I could go into detail, but you all are probably tired of listening to me talk.

320
00:19:26,480 --> 00:19:32,640
 So, that is essentially it, and I'm happy to answer any questions.

321
00:19:32,640 --> 00:19:37,920
 >> Questions, is that Mr. Rayner?

322
00:19:37,920 --> 00:19:38,680
 >> Thank you.

323
00:19:38,680 --> 00:19:40,120
 I appreciate the information.

324
00:19:40,120 --> 00:19:46,080
 I'd like to ask a couple questions on your, I think it's a given,

325
00:19:46,080 --> 00:19:52,560
 our population growth is wonderful to some and off the chart with others.

326
00:19:52,560 --> 00:19:58,720
 I'd like to talk about the apartment complexes that are coming up, those that are already out,

327
00:19:58,720 --> 00:20:02,320
 those that are in the pipeline for further development and such.

328
00:20:02,320 --> 00:20:17,360
 Have you all done a somewhat study on what you project water usage from all of these apartment complexes versus population, but the apartment complexes themselves?

329
00:20:17,360 --> 00:20:27,000
 Did you all put that in your study when you looked at the active drought plan and such?

330
00:20:27,000 --> 00:20:28,280
 >> So, yes sir.

331
00:20:28,280 --> 00:20:37,520
 We did consider population growth, and one of the things we did in the plan was we separated out multi-family usage from single-family homes.

332
00:20:37,520 --> 00:20:45,040
 In the past, we had this trajectory that was saying, hey, we're saving water less gallons per capita per day per person.

333
00:20:45,040 --> 00:20:50,400
 But as you dissected the data, there's kind of the elephant in the room is, well yes,

334
00:20:50,400 --> 00:20:53,600
 but when you're in a multi-family scenario, not everybody is irrigating.

335
00:20:53,600 --> 00:21:02,800
 You can't chalk that water reduction up to improved conservation measures because it's just kind of the nature of it.

336
00:21:02,800 --> 00:21:11,320
 So we did adjust our five and ten year targets for gallons per capita per day savings to reflect that.

337
00:21:11,320 --> 00:21:16,060
 Because the last thing we want to do is pad our projections and

338
00:21:16,060 --> 00:21:23,920
 conservation measures with something that's naturally going to correct high volume per capita per day usage with the elimination of irrigation.

339
00:21:23,920 --> 00:21:29,800
 >> So did you find the number of apartment complexes that are coming out of the ground,

340
00:21:29,800 --> 00:21:33,480
 were you prepared for that type of growth?

341
00:21:34,640 --> 00:21:43,400
 >> So luckily, as part of the plan, we have always had to maintain a projection of at least ten years into the future.

342
00:21:43,400 --> 00:21:49,160
 Now, this was a little bit of an increase than what we had in the past.

343
00:21:49,160 --> 00:21:58,120
 I think we're currently at an 8.11% growth rate, which is more than what we anticipated growth to be during prior versions of the plan.

344
00:21:58,120 --> 00:22:06,120
 But luckily, we were really conservative with our supply, our planning, and then those alternative strategies that we have in place.

345
00:22:06,120 --> 00:22:13,020
 So we are in a good spot, but yes, sir, we were a little surprised to see just how quickly we're growing.

346
00:22:13,020 --> 00:22:15,120
 >> Yeah, I agree.

347
00:22:15,120 --> 00:22:17,840
 If I may, Mr. Chairman, thank you.

348
00:22:17,840 --> 00:22:25,640
 So I wanted to go over, I understand the June 1st, September 10 to 6, we've been doing that for some time now.

349
00:22:25,640 --> 00:22:34,520
 Now, does that dovetail into your irrigation schedule, Monday through Thursday's commercial multifamily?

350
00:22:34,520 --> 00:22:39,480
 Does that slide that you showed, does that have anything to do with the water ban or

351
00:22:39,480 --> 00:22:47,760
 is the water ban an addition to if we need to follow this on the 10 to 6 situation, time wise?

352
00:22:47,760 --> 00:22:53,560
 >> Yes, sir. So the two day a week water schedule is going to be in place year round.

353
00:22:53,560 --> 00:23:00,560
 And so give me, if you can, because I live up in the northeast part of town, they'll ask that question.

354
00:23:00,560 --> 00:23:04,000
 It's odd number, so that would be a Wednesday.

355
00:23:04,000 --> 00:23:11,040
 They can start watering whenever they want and water all through Wednesday, or does it fall back into the 10 to 6 time frame?

356
00:23:11,040 --> 00:23:16,960
 >> So on October 1st, you can water whenever you want on Wednesday.

357
00:23:16,960 --> 00:23:22,280
 And you can enjoy that all the way through the, what is it?

358
00:23:22,280 --> 00:23:28,520
 >> Well, I guess, midnight for Wednesday and starting the one o'clock on Thursday morning, you're saying then.

359
00:23:28,520 --> 00:23:35,280
 >> Well, yes, you can any time between 6 PM and 10 AM, the following, because that midnight cut off, I understand.

360
00:23:35,280 --> 00:23:36,480
 Sorry about that.

361
00:23:36,480 --> 00:23:40,360
 Yes, so it would be to that midnight cut off.

362
00:23:40,360 --> 00:23:45,040
 We're not going to be policing people on October 2nd.

363
00:23:45,040 --> 00:23:49,240
 >> I'm just trying to understand the irrigation schedule is one thing.

364
00:23:49,240 --> 00:23:54,240
 And this 10 to 6, if necessary, is the next step, is that correct?

365
00:23:54,240 --> 00:23:57,040
 >> So the 10 to 6, actually, that's always in place.

366
00:23:57,040 --> 00:23:59,640
 That's been in place for years and years.

367
00:23:59,640 --> 00:24:04,960
 And no matter what, it's always going to be no irrigation from 10 AM to 6 PM.

368
00:24:04,960 --> 00:24:08,480
 And during June 1st through September 30th.

369
00:24:08,480 --> 00:24:13,240
 But really, you're going to scorch your lawn doing that anyways.

370
00:24:13,240 --> 00:24:16,200
 So it's- >> Some people don't care.

371
00:24:16,200 --> 00:24:18,520
 >> Yeah. >> You don't know.

372
00:24:18,520 --> 00:24:25,200
 And that time it also, if you have those spray irrigation sprinklers too, you're going to lose most of it in evaporation.

373
00:24:25,200 --> 00:24:27,800
 So it is best practice anyways during that time.

374
00:24:27,800 --> 00:24:34,840
 And most of our residents do water after that 6 PM when the heat of the day and peak evaporation has gone down.

375
00:24:34,840 --> 00:24:42,400
 But that's all year twice a week and every year, no matter how much or little rain, from June 1st through September 30th in addition.

376
00:24:42,400 --> 00:24:43,800
 >> So there's your time frame for that.

377
00:24:43,800 --> 00:24:44,360
 >> Yes, sir.

378
00:24:44,360 --> 00:24:53,240
 >> My last question, I was interested in the reuse investment versus the discharge into the lake.

379
00:24:53,240 --> 00:25:02,400
 Do you have a percentage of the discharge that would be possibly be put back into a reuse investment for the city?

380
00:25:02,400 --> 00:25:07,560
 >> Yes, sir, in terms of financial investment or water?

381
00:25:07,560 --> 00:25:08,560
 >> Let's do both.

382
00:25:08,560 --> 00:25:14,200
 >> Okay, well, we actually, very exciting, we hired an FTE almost a year ago.

383
00:25:15,320 --> 00:25:20,280
 To really pour a lot of time and energy into our reuse system.

384
00:25:20,280 --> 00:25:26,000
 And he's doing a lot of work to make sure that we are solid and good to go to bring on additional customers.

385
00:25:26,000 --> 00:25:32,040
 Right now, it varies, but in the peak summer, we have anywhere from,

386
00:25:32,040 --> 00:25:35,920
 we've got the capacity to go up to four million gallons a day of reuse water.

387
00:25:35,920 --> 00:25:44,160
 We are currently discharging a little under 21 million gallons of water a day on our peak.

388
00:25:44,720 --> 00:25:50,760
 But it's usually closer to kind of 14 or 15 for the rest of the year, is what we discharge into the lake.

389
00:25:50,760 --> 00:25:55,920
 And then right now, we're diverting, give or take, about half a million gallons of water a day.

390
00:25:55,920 --> 00:25:57,600
 We are going to grow that system.

391
00:25:57,600 --> 00:26:02,960
 So for example, one of the really cool things we did when we went through the drought contingency plan.

392
00:26:02,960 --> 00:26:09,680
 And we talked to the different departments and said, hey, are you aware you're on the hook for, for example, streets.

393
00:26:09,680 --> 00:26:15,160
 Wet street sweeping has to be reduced during times of drought.

394
00:26:15,160 --> 00:26:21,680
 We talked to the street department manager and said, well, could we not just use effluent water instead of just charging it into the lake?

395
00:26:21,680 --> 00:26:23,680
 because that's not for human consumption.

396
00:26:23,680 --> 00:26:30,440
 And he said, well sure, so there's some things we're going to have to work through to get to that point, retrofitting the trucks and so on.

397
00:26:30,440 --> 00:26:35,000
 But we're looking at alternative strategies like that.

398
00:26:35,000 --> 00:26:40,520
 We're also targeting other businesses that have industrial uses,

399
00:26:40,520 --> 00:26:46,720
 where they could utilize the water for industrial usage, never coming in contact with humans, and then offsetting our potable demand.

400
00:26:46,720 --> 00:26:55,480
 So if y'all would like to have us actually come back and give a presentation, I'm really excited about the things happening, and we would love to tell y'all.

401
00:26:55,480 --> 00:26:58,800
 >> Thank you, thank you, Mr. Chairman.

402
00:26:58,800 --> 00:27:05,120
 Bob's got a club that they set their clocks, their alarm clocks at midnight on October 1st.

403
00:27:05,120 --> 00:27:08,560
 So they all get up and water their lawns together in his neighborhood.

404
00:27:08,560 --> 00:27:10,240
 >> Don't take a shower during that time.

405
00:27:10,240 --> 00:27:13,440
 >> I will be back with that skated demand data to show y'all.

406
00:27:13,440 --> 00:27:19,320
 >> Well, one thing, I don't know if you're an accountant, but one thing I know about accountants is they love it when you ask them for

407
00:27:19,320 --> 00:27:23,760
 information because they've been putting all this stuff together for a long time, you know?

408
00:27:23,760 --> 00:27:26,120
 But anyway, okay, questions?

409
00:27:28,360 --> 00:27:30,040
 Okay, doesn't appear to be.

410
00:27:30,040 --> 00:27:33,880
 We will need a motion and a vote on this item.

411
00:27:33,880 --> 00:27:36,360
 >> So moved.

412
00:27:36,360 --> 00:27:37,320
 >> And a motion?

413
00:27:37,320 --> 00:27:38,000
 >> Second.

414
00:27:38,000 --> 00:27:39,880
 >> Second, Mr. Plut.

415
00:27:39,880 --> 00:27:41,160
 All those in favor, please say aye.

416
00:27:41,160 --> 00:27:41,680
 >> Aye.

417
00:27:41,680 --> 00:27:42,400
 >> Any opposed?

418
00:27:42,400 --> 00:27:45,520
 Passes unanimously.

419
00:27:45,520 --> 00:27:52,040
 Okay, now on this next item, it needs to be voted on regardless in open session.

420
00:27:52,040 --> 00:27:58,200
 However, if you do have any questions, we need to go into closed session to ask those questions.

421
00:27:59,200 --> 00:28:04,440
 Or put a presentation on because it is approved for a closed session item.

422
00:28:04,440 --> 00:28:09,640
 >> So if I might interject, Mr. Chairman, so what you're saying is we can have a presentation and

423
00:28:09,640 --> 00:28:14,200
 we can look at the information, but we can't ask any questions until we get the closed session?

424
00:28:14,200 --> 00:28:15,040
 >> Is that right?

425
00:28:15,040 --> 00:28:16,400
 >> No, we need to go with the open.

426
00:28:16,400 --> 00:28:19,280
 >> No, there's only specific information that is confidential.

427
00:28:19,280 --> 00:28:24,560
 The pricing, if there's information you want about some of the other resources that we have and how they compare.

428
00:28:24,560 --> 00:28:30,840
 Those sorts of things, and any items that's been redacted in the contract, we would have to go into closed session.

429
00:28:30,840 --> 00:28:37,520
 >> So the question was, the presentation needs to be done in closed session or can it be done in open session?

430
00:28:37,520 --> 00:28:43,040
 >> We do have a presentation that we can go through for closed session if you'd like to do that first.

431
00:28:43,040 --> 00:28:44,800
 >> But there's not a presentation for open session?

432
00:28:44,800 --> 00:28:46,120
 >> There is a presentation for open, yes.

433
00:28:46,120 --> 00:28:46,840
 >> Okay, all right.

434
00:28:46,840 --> 00:28:47,400
 >> There are both.

435
00:28:47,400 --> 00:28:48,120
 >> That's the question.

436
00:28:48,120 --> 00:28:49,640
 >> There's both, yes, sir.

437
00:28:49,640 --> 00:28:50,160
 >> Thank you.

438
00:28:50,160 --> 00:28:52,960
 >> And let's move ahead with that one then.

439
00:28:54,960 --> 00:28:58,520
 >> So just for clarity, Mr. Chair, so we're going to go ahead and do the open session.

440
00:28:58,520 --> 00:29:03,360
 And if there are questions that the City Attorney deems confidential, we can go into closed session.

441
00:29:03,360 --> 00:29:04,480
 >> I think we got it now, thank you.

442
00:29:04,480 --> 00:29:08,400
 >> Good morning, members of the PUB.

443
00:29:08,400 --> 00:29:10,040
 My name is Jose Gaitan.

444
00:29:10,040 --> 00:29:13,600
 I'm here, I'm the division manager for the Energy Management Organization.

445
00:29:13,600 --> 00:29:20,000
 We're here to present the results of the RFP that we had for

446
00:29:20,000 --> 00:29:27,160
 additional power supply from renewable resources to maintain our 100% renewable goal.

447
00:29:27,160 --> 00:29:35,720
 And as a result of that RFP, we're here to present what we believe is the best option.

448
00:29:35,720 --> 00:29:37,760
 And that is Yellow Viking Solar.

449
00:29:37,760 --> 00:29:45,640
 So Yellow Viking Solar is officially named Yellow Viking Development 1, LLC.

450
00:29:45,640 --> 00:29:52,280
 And that is the initial project from Osaka Gas USA.

451
00:29:52,280 --> 00:30:00,800
 Osaka Energy is a company that was founded in Osaka, Japan in 1897.

452
00:30:00,800 --> 00:30:08,920
 They're a very strong company, have over 23.5 billion assets.

453
00:30:08,920 --> 00:30:14,480
 They have over half a billion dollars of revenues for the last four years, so they're a pretty strong company.

454
00:30:15,800 --> 00:30:22,680
 Last year, they had an initiative to be carbon neutral by 2050,

455
00:30:22,680 --> 00:30:27,360
 and so this is their initial project in the United States to meet that goal.

456
00:30:27,360 --> 00:30:32,880
 They do have experience with renewables in Japan.

457
00:30:32,880 --> 00:30:35,840
 >> You said the company was formed in 1897?

458
00:30:35,840 --> 00:30:38,200
 >> 1897, April 10th.

459
00:30:38,200 --> 00:30:39,080
 >> That's right.

460
00:30:39,080 --> 00:30:40,240
 >> In Japan, Osaka.

461
00:30:40,240 --> 00:30:41,760
 So they've been around for a while.

462
00:30:43,000 --> 00:30:46,040
 >> They probably weren't selling electricity in 1897.

463
00:30:46,040 --> 00:30:48,440
 >> No. >> Okay, wow.

464
00:30:48,440 --> 00:30:52,240
 >> Yeah, they've been around the energy space for a very long time.

465
00:30:52,240 --> 00:30:52,760
 >> Okay.

466
00:30:52,760 --> 00:31:01,920
 >> So yeah, just where this project is complete is 204 megawatts of capacity.

467
00:31:01,920 --> 00:31:05,200
 They're interconnected in the Encore system.

468
00:31:05,200 --> 00:31:12,000
 They have a guaranteed commercial date of January 2027.

469
00:31:12,000 --> 00:31:18,520
 And from this RFP, 8271, we received quite a few responses.

470
00:31:18,520 --> 00:31:26,480
 17 offers were received, and six best and final offers were also reviewed as a result of this RFP.

471
00:31:26,480 --> 00:31:33,840
 Looking at all the responses and the pricing, you can see there,

472
00:31:33,840 --> 00:31:36,680
 Yellow Viking is roughly in that red block there.

473
00:31:38,600 --> 00:31:45,960
 We evaluated all these criteria, the proposed price congestion cost was a big factor.

474
00:31:45,960 --> 00:31:51,480
 And the experience of the developer and the status of the development were key,

475
00:31:51,480 --> 00:31:54,840
 because we have some projects that have rolled off.

476
00:31:54,840 --> 00:32:01,560
 And so we need to replace that energy with more additional renewable PPAs to continue to meet that 100% goal.

477
00:32:05,560 --> 00:32:12,720
 Yellow Viking here, we can see our blue line, it has significant load growth, as you guys are well aware.

478
00:32:12,720 --> 00:32:22,920
 We had, as I mentioned before, we had the expiration of our white tail PPA that expired at the end of last year.

479
00:32:22,920 --> 00:32:32,760
 And we have Samsung Solar, we had issues with that PPA as well, as you may be aware.

480
00:32:33,840 --> 00:32:38,120
 And then you can see in the red line,

481
00:32:38,120 --> 00:32:47,480
 where Yellow Viking kind of fits into meeting that 100% demand for renewable energy.

482
00:32:47,480 --> 00:32:53,920
 And what you see is that we're not quite at the amount of load that we have going forward.

483
00:32:53,920 --> 00:33:01,280
 But the area between the blue and the red curve designates areas where we'll be entering into short term

484
00:33:01,280 --> 00:33:07,800
 renewables deals to get the energy and the rec from renewable resources to meet that demand.

485
00:33:07,800 --> 00:33:12,520
 These are some of the, go ahead.

486
00:33:12,520 --> 00:33:14,840
 >> I'm sorry, I have a question from your previous slide.

487
00:33:14,840 --> 00:33:18,040
 >> Yeah.

488
00:33:18,040 --> 00:33:26,440
 >> So, we allowed this white tail agreement to expire and chose not to renew it?

489
00:33:26,440 --> 00:33:31,240
 >> No, it was just, it was the timeframe of that contract was set to expire on that day.

490
00:33:31,240 --> 00:33:39,880
 There were some options to renew, but the price was not in our favor.

491
00:33:39,880 --> 00:33:46,000
 >> Okay, so we chose, excuse me, we chose to, DME chose to let that contract expire.

492
00:33:46,000 --> 00:33:46,600
 >> Correct.

493
00:33:46,600 --> 00:33:48,480
 >> Because financial considerations.

494
00:33:48,480 --> 00:33:54,040
 So, I noticed that Samsung Solar said default, did they go under?

495
00:33:54,040 --> 00:33:58,840
 >> No, we had some issues with them, but I think we can speak more about it in the close session.

496
00:33:58,840 --> 00:33:59,880
 >> Very good, thank you.

497
00:33:59,880 --> 00:34:01,520
 >> Yeah.

498
00:34:01,520 --> 00:34:07,200
 >> And I may ask, I wanted to discuss the, I consider a flat line on the yellow Viking.

499
00:34:07,200 --> 00:34:13,120
 Is that something that should be discussed at, I'm just curious why it leveled off and

500
00:34:13,120 --> 00:34:15,920
 there's no increase in that projection.

501
00:34:15,920 --> 00:34:19,880
 >> Yeah, as we go forward in next year and the year after,

502
00:34:19,880 --> 00:34:25,800
 we're going to continue to issue more RFPs to increase that flat line so

503
00:34:25,800 --> 00:34:28,280
 it doesn't flat line like that going forward.

504
00:34:28,280 --> 00:34:32,440
 So, this is just showing where we are currently, but we intend, yes.

505
00:34:32,440 --> 00:34:39,600
 We intend to continue to issue RFPs to get more megawatts from renewable resources going forward.

506
00:34:39,600 --> 00:34:42,280
 >> Okay, thank you.

507
00:34:42,280 --> 00:34:42,800
 >> Mm-hm.

508
00:34:42,800 --> 00:34:53,160
 Yep, so these are the, kind of the points that were agreed to with this PPA.

509
00:34:53,160 --> 00:34:58,120
 It's a 15 year deal that starts in 2027.

510
00:34:58,120 --> 00:34:59,920
 It's a fixed price for the entire term.

511
00:34:59,920 --> 00:35:08,440
 We have some performance guarantees for commercial operation dates for pre and post.

512
00:35:08,440 --> 00:35:14,200
 The things really to note were more of the tight force measure definitions,

513
00:35:14,200 --> 00:35:17,600
 especially with the results of the Samsung RFP.

514
00:35:17,600 --> 00:35:22,640
 We have a tier one where yellow Viking is responsible for all costs.

515
00:35:22,640 --> 00:35:27,760
 There is a tier two where the 50/50 split of those costs.

516
00:35:28,400 --> 00:35:32,760
 And then there's a tier three where if costs exceed a certain amount,

517
00:35:32,760 --> 00:35:37,440
 we do have the option to terminate the contract at that point.

518
00:35:37,440 --> 00:35:46,560
 So, at this point, we would recommend that the city council approve and

519
00:35:46,560 --> 00:35:52,280
 authorize the city manager to execute the PPA and all associated actions.

520
00:35:52,280 --> 00:35:53,320
 So, any questions?

521
00:35:53,320 --> 00:35:58,320
 >> Mr. Chairman, I was wondering if we could postpone holding a vote until we've

522
00:35:58,320 --> 00:36:02,000
 had closed session so that we can ask questions.

523
00:36:02,000 --> 00:36:05,360
 >> Certainly, I think that was what they were planning on.

524
00:36:05,360 --> 00:36:05,860
 >> Thank you.

525
00:36:05,860 --> 00:36:09,800
 >> Having said that, we'll postpone this vote.

526
00:36:09,800 --> 00:36:13,000
 I'm going to, ready, okay.

527
00:36:13,000 --> 00:36:20,400
 So, the Public Utility Board will now at 9.35 AM convening a closed meeting to

528
00:36:20,400 --> 00:36:25,160
 deliberate the closed meeting items set forth on the agenda, which include the following.

529
00:36:25,160 --> 00:36:32,360
 IDPUB 24-072, deliberations regarding certain public power utilities competitive

530
00:36:32,360 --> 00:36:37,560
 matters under Texas Government Code Section 551.086.

531
00:36:37,560 --> 00:36:42,680
 Consultation with attorneys under Texas Government Code Section 551.071.

532
00:36:42,680 --> 00:36:51,680
 [BLANK_AUDIO]

533
00:36:51,680 --> 00:36:54,840
 Closed session and no official action was taken.

534
00:36:54,840 --> 00:36:59,720
 And we did not, nevermind.

535
00:36:59,720 --> 00:37:03,640
 >> Mr. Chairman, I have asked to postpone our earlier vote until the closed session

536
00:37:03,640 --> 00:37:04,960
 was over.

537
00:37:04,960 --> 00:37:08,760
 I'd like to move approval of the previous item.

538
00:37:11,040 --> 00:37:16,480
 >> All right, so we have a motion to approve item A from PUB 24.

539
00:37:16,480 --> 00:37:18,520
 It's actually item C.

540
00:37:18,520 --> 00:37:19,760
 >> Item C, sir, yeah.

541
00:37:19,760 --> 00:37:23,160
 >> C, PUB 24-073.

542
00:37:23,160 --> 00:37:23,880
 Do I hear a second?

543
00:37:23,880 --> 00:37:27,080
 >> Second.

544
00:37:27,080 --> 00:37:27,720
 >> Thank you.

545
00:37:27,720 --> 00:37:29,680
 We have a second one, Mr. Rayner.

546
00:37:29,680 --> 00:37:30,400
 Motion and a second.

547
00:37:30,400 --> 00:37:31,880
 All those in favor, please say aye.

548
00:37:31,880 --> 00:37:32,880
 >> Aye.

549
00:37:32,880 --> 00:37:33,600
 >> Any opposed?

550
00:37:33,600 --> 00:37:34,800
 >> Aye.

551
00:37:34,800 --> 00:37:36,000
 >> You're opposed?

552
00:37:36,000 --> 00:37:37,680
 Okay, interesting.

553
00:37:37,680 --> 00:37:39,440
 Hope somebody calls you and asks you why.

554
00:37:39,440 --> 00:37:42,160
 >> [INAUDIBLE] >> And me too, but they don't ever do it.

555
00:37:42,160 --> 00:37:47,640
 >> [LAUGH]

556
00:37:47,640 --> 00:37:49,120
 >> Well, thank you.

557
00:37:49,120 --> 00:37:54,680
 >> See, that would be called an abstain vote in my book when I got in trouble for that.

558
00:37:54,680 --> 00:37:56,160
 >> Yeah.

559
00:37:56,160 --> 00:37:58,080
 >> All right, let's move it, get out of here.

560
00:37:58,080 --> 00:38:00,280
 >> I don't think we can do that anymore, abstain yet.

561
00:38:00,280 --> 00:38:05,000
 >> No, I know, I've got slapped on the hand, wrist.

562
00:38:05,000 --> 00:38:07,280
 >> Better vote health.

563
00:38:07,280 --> 00:38:12,800
 >> That's right.

564
00:38:12,800 --> 00:38:14,960
 >> Yeah, yeah, Mr. Puente.

565
00:38:14,960 --> 00:38:19,160
 >> Sorry about that, Mr. Chair.

566
00:38:19,160 --> 00:38:25,600
 Yeah, so just really quick on the management update, just future agenda items that are coming up.

567
00:38:25,600 --> 00:38:33,360
 I think I've said this every single meeting, just as a reminder, a lot of budget stuff coming to you here in the next couple of months.

568
00:38:33,360 --> 00:38:36,480
 May 20th kind of being the first meeting.

569
00:38:36,480 --> 00:38:42,800
 And so please, if you could be available to that, we do have a lot of budgets that we go through with the board.

570
00:38:42,800 --> 00:38:48,440
 And so please just be attuned to those dates starting May 20th.

571
00:38:48,440 --> 00:38:55,120
 And then for the new business action item, I think we've completed everything except the one item on EV vehicles.

572
00:38:55,120 --> 00:38:56,800
 And we still have quite a bit of time on that.

573
00:38:56,800 --> 00:39:01,640
 But that's really all we have for you today, and if there's any questions you have, I'm happy to-

574
00:39:01,640 --> 00:39:05,000
 >> If there are not any more questions, we stand adjourned.

575
00:39:05,000 --> 00:39:07,000
 I got it in there after all.