1 00:00:00,000 --> 00:00:07,940 >> Okay, it is nine o'clock, so a call to order the Public Utilities Board meeting for 2 00:00:07,940 --> 00:00:14,500 the City of Denton on Monday, January 13th at 2025. 3 00:00:14,500 --> 00:00:18,180 The first item of business is presentations of members to the public. 4 00:00:18,180 --> 00:00:20,100 Did we have anyone sign up, Cassie? 5 00:00:20,100 --> 00:00:23,020 No? All right, then we'll move on to the consent agenda. 6 00:00:23,020 --> 00:00:26,260 Does any board member wish to pull items A through D? 7 00:00:26,260 --> 00:00:29,420 Okay, seeing none. 8 00:00:29,420 --> 00:00:33,040 Do we have a motion to approve items A through D on the consent? 9 00:00:33,040 --> 00:00:33,700 >> So moved. 10 00:00:33,700 --> 00:00:34,700 >> Second. 11 00:00:34,700 --> 00:00:36,940 >> Okay, least moved. 12 00:00:36,940 --> 00:00:37,740 Rob seconded. 13 00:00:37,740 --> 00:00:39,020 All in favor say aye. 14 00:00:39,020 --> 00:00:39,520 >> Aye. 15 00:00:39,520 --> 00:00:48,220 >> Next item is receive nominations and hold elections for the Chair, Vice Chair, and Secretary. 16 00:00:48,220 --> 00:00:53,380 I'm going to be traveling a lot this year, so I have decided to step down as a chair and 17 00:00:53,380 --> 00:00:56,580 have other people maybe take that role. 18 00:00:56,580 --> 00:01:03,580 I would like to nominate for Chair Billy Cheek, Vice Chair Devon Taylor, and Secretary Thomas Pluck. 19 00:01:03,580 --> 00:01:05,540 Do we have any other nominations? 20 00:01:05,540 --> 00:01:09,500 I see none. 21 00:01:09,500 --> 00:01:14,020 Okay, do we have a motion to approve the nominations? 22 00:01:14,020 --> 00:01:15,180 >> So moved. 23 00:01:15,180 --> 00:01:16,380 >> Rob moves, second? 24 00:01:16,380 --> 00:01:20,380 Lee seconds, all in favor say aye. 25 00:01:20,380 --> 00:01:21,620 >> Aye. >> Aye. 26 00:01:21,620 --> 00:01:23,540 All right, now we change seats. 27 00:01:26,260 --> 00:01:27,740 We'll keep the name plates. 28 00:01:27,740 --> 00:01:30,740 >> [LAUGH] 29 00:01:30,740 --> 00:01:34,140 >> Now I understand why you dressed up. 30 00:01:34,140 --> 00:01:34,980 >> I wore that. 31 00:01:34,980 --> 00:01:39,140 >> [LAUGH] 32 00:01:39,140 --> 00:01:39,860 >> Good morning. 33 00:01:39,860 --> 00:01:46,780 So our next item of business is to consider approval of the December 9th, 2024 minutes. 34 00:01:46,780 --> 00:01:48,900 Do we have a motion? 35 00:01:48,900 --> 00:01:50,460 >> Move approval. 36 00:01:50,460 --> 00:01:51,740 >> We have a motion, do we have a second? 37 00:01:51,740 --> 00:01:55,180 Lee seconds. 38 00:01:55,180 --> 00:01:56,220 All in favor say aye. 39 00:01:56,220 --> 00:01:58,180 >> Aye. >> Opposed? 40 00:01:58,180 --> 00:01:59,140 Carries unanimously. 41 00:01:59,140 --> 00:02:03,660 And then our next item for individual consideration. 42 00:02:03,660 --> 00:02:07,700 Consider recommending adoption of an ordinance to the city of Denton authorizing the city 43 00:02:07,700 --> 00:02:10,860 manager to execute a contract with WEG Transformers for 44 00:02:10,860 --> 00:02:15,300 the purchase of substation power transformers for Denton Municipal Electric. 45 00:02:15,300 --> 00:02:19,180 Totaling for three years with an option for 46 00:02:19,180 --> 00:02:25,740 two one year extensions not to exceed $24,890,000. 47 00:02:25,740 --> 00:02:28,380 Good morning, Mark Zimmer, DME Engineering. 48 00:02:28,380 --> 00:02:31,420 For your consideration this morning is a contract to purchase substation power 49 00:02:31,420 --> 00:02:36,660 transformers for DME's capital improvement projects. 50 00:02:36,660 --> 00:02:42,980 Substation power transformers reside in DME substations and 51 00:02:42,980 --> 00:02:46,420 convert the transmission voltage down to a distribution voltage. 52 00:02:46,420 --> 00:02:51,740 These devices are the most expensive and the most important devices in our substations. 53 00:02:54,100 --> 00:02:58,780 DME has several approved capital projects that require purchase of substation power 54 00:02:58,780 --> 00:02:59,380 transformers. 55 00:02:59,380 --> 00:03:03,260 You can see the listing and the quantities here on the slide as well as a picture of 56 00:03:03,260 --> 00:03:06,540 what a typical substation power transformer looks like. 57 00:03:06,540 --> 00:03:15,860 So DME prepared a technical specification, issued an RFP and received three bids. 58 00:03:15,860 --> 00:03:19,940 They were evaluated using the criteria you see here on the screen. 59 00:03:19,940 --> 00:03:22,180 WEG Transformers was evaluated to the highest. 60 00:03:24,260 --> 00:03:28,820 Total contract price was calculated using the quantity of transformers we need for 61 00:03:28,820 --> 00:03:32,620 these projects, spare parts and a 10% contingency. 62 00:03:32,620 --> 00:03:36,940 That 10% contingency will be used in case any redesign is needed or 63 00:03:36,940 --> 00:03:38,980 any special features are needed for certain projects. 64 00:03:38,980 --> 00:03:45,300 WEG Transformers USA LLC is the highest evaluated proposal and 65 00:03:45,300 --> 00:03:48,220 DME recommends award of contract with WEG Transformers. 66 00:03:48,220 --> 00:03:49,740 Any questions? 67 00:03:49,740 --> 00:03:51,400 Yes, sir. 68 00:03:51,400 --> 00:03:56,620 >> All right, three. 69 00:03:56,620 --> 00:04:03,380 So the first three, we need two additional ones. 70 00:04:03,380 --> 00:04:05,540 Are you saying two additional ones for Underwood? 71 00:04:05,540 --> 00:04:09,900 One additional for Jim Crystal and then two for Southwest. 72 00:04:09,900 --> 00:04:14,820 And then the substation, so those will be five brand new ones. 73 00:04:14,820 --> 00:04:16,820 >> Right, those will be five. 74 00:04:16,820 --> 00:04:20,580 >> And then the substation for Fort Worth, that'd be two brand new ones. 75 00:04:20,580 --> 00:04:22,460 We're just, okay. 76 00:04:22,460 --> 00:04:24,340 >> So seven total units under this contract. 77 00:04:24,340 --> 00:04:27,900 Again, it doesn't require us to spend this amount. 78 00:04:27,900 --> 00:04:30,740 It's just we have a contract to purchase them for projects when they're needed. 79 00:04:30,740 --> 00:04:35,940 Yes, sir. 80 00:04:35,940 --> 00:04:40,380 >> So this is all part of the high voltage upgrade that we're currently undergoing? 81 00:04:40,380 --> 00:04:41,020 >> Yes, sir. 82 00:04:41,020 --> 00:04:45,220 These transformers will support the 25 KV initiative that's being done at DME. 83 00:04:48,700 --> 00:04:55,380 >> And so of the five, the top three stations there, are they replacing current equipment? 84 00:04:55,380 --> 00:04:56,740 >> No, sir, these are brand new. 85 00:04:56,740 --> 00:05:00,900 It's just the bottom Fort Worth substation has two transformers that are seeing 86 00:05:00,900 --> 00:05:04,220 overloads in the future, and so we need to replace them with larger units. 87 00:05:04,220 --> 00:05:06,980 The top three projects are all brand new transformers. 88 00:05:06,980 --> 00:05:12,220 >> And are we standardizing on this size, or is it all just project based? 89 00:05:12,220 --> 00:05:15,340 >> We are, yeah, and we've always standardized on a size. 90 00:05:15,340 --> 00:05:21,980 In the past it was 25 MBA was the capacity, and 13.2 for the distribution voltage. 91 00:05:21,980 --> 00:05:25,940 And now we're standardizing on a larger 50 MBA unit. 92 00:05:25,940 --> 00:05:28,140 It'll serve, of course, more customers on it, and 93 00:05:28,140 --> 00:05:31,780 we're changing to the 25 KV distribution voltage. 94 00:05:31,780 --> 00:05:33,020 That'll be our standard moving forward. 95 00:05:33,020 --> 00:05:40,860 >> I'm curious, I call it the Bonnie Bray station that you're going to be switching over. 96 00:05:40,860 --> 00:05:43,820 Is that one of those, and I just don't recognize the name, or 97 00:05:43,820 --> 00:05:46,700 is that stand alone in good shape? 98 00:05:46,700 --> 00:05:47,740 >> Bonnie Bray substation? 99 00:05:47,740 --> 00:05:48,240 >> Yeah. 100 00:05:48,240 --> 00:05:51,180 >> There's two on Bonnie Bray. 101 00:05:51,180 --> 00:05:54,060 >> Well, the one that we're going to be moving across the street. 102 00:05:54,060 --> 00:05:55,820 >> Okay, so Hickory substation. 103 00:05:55,820 --> 00:05:57,300 >> Is that what that, okay, I wasn't sure. 104 00:05:57,300 --> 00:05:58,580 >> Yeah, that is not included in here. 105 00:05:58,580 --> 00:06:00,420 That already has new transformers. 106 00:06:00,420 --> 00:06:00,920 >> Okay. 107 00:06:00,920 --> 00:06:03,820 Could we go to page five, please? 108 00:06:03,820 --> 00:06:04,320 >> Yes, sir. 109 00:06:04,320 --> 00:06:06,320 >> One more. 110 00:06:06,320 --> 00:06:13,380 So I'm curious, the WEG transformers, are they on our approved list, 111 00:06:13,380 --> 00:06:17,140 or is this something that we don't need to worry about 112 00:06:17,140 --> 00:06:20,620 when we do bids like this for those type of units? 113 00:06:20,620 --> 00:06:24,680 >> No, they're not an approved list necessarily. 114 00:06:24,680 --> 00:06:26,740 I'm not sure that we have that for these types of items. 115 00:06:26,740 --> 00:06:28,780 >> Is that necessary for purchasing like that? 116 00:06:28,780 --> 00:06:30,780 That's what I'm curious about. 117 00:06:30,780 --> 00:06:33,860 >> Right, we received several bids and evaluated them. 118 00:06:33,860 --> 00:06:36,500 Of course, this was the highest proposal. 119 00:06:36,500 --> 00:06:39,300 They were the ones that met our technical specifications and 120 00:06:39,300 --> 00:06:43,300 could deliver on our project timelines. 121 00:06:44,100 --> 00:06:46,220 So, yes, sir. 122 00:06:46,220 --> 00:06:49,300 >> I am also unfamiliar with this name, WEG Transformers. 123 00:06:49,300 --> 00:06:50,700 Are they a new company? 124 00:06:50,700 --> 00:06:52,940 Are they a renamed older company? 125 00:06:52,940 --> 00:06:54,060 >> No, they've been around a while. 126 00:06:54,060 --> 00:06:56,060 They're actually from Mexico. 127 00:06:56,060 --> 00:06:58,620 So the manufacturing location is in Mexico. 128 00:06:58,620 --> 00:07:00,820 We actually own a WEG transformer now. 129 00:07:00,820 --> 00:07:05,220 It's been in service for seven or eight years with no issue. 130 00:07:05,220 --> 00:07:07,260 So we're fairly comfortable with using them. 131 00:07:07,260 --> 00:07:11,340 The manufacturer we used to use, which was Waukesha, 132 00:07:11,340 --> 00:07:13,660 their lead times are four or five years now. 133 00:07:13,660 --> 00:07:16,540 So we just we can't use them, unfortunately. 134 00:07:16,540 --> 00:07:25,700 >> Seeing no other questions, I'd entertain a motion. 135 00:07:25,700 --> 00:07:29,900 >> Move to approve. 136 00:07:29,900 --> 00:07:33,180 >> We have a motion and second from Rob. 137 00:07:33,180 --> 00:07:34,060 All in favor? 138 00:07:34,060 --> 00:07:35,900 >> Aye. 139 00:07:35,900 --> 00:07:36,940 >> Carries unanimously. 140 00:07:36,940 --> 00:07:37,700 >> Thank you. 141 00:07:37,700 --> 00:07:40,300 >> Our next item of business is management reports. 142 00:07:42,140 --> 00:07:44,860 >> Good morning, Mr. Chair and members. 143 00:07:44,860 --> 00:07:50,060 You would have received in your packet a memo from water utilities for 144 00:07:50,060 --> 00:07:55,460 Lake Louisville filter restoration question that came in 145 00:07:55,460 --> 00:07:58,780 during your November 18th meeting. 146 00:07:58,780 --> 00:08:00,260 And we do have Stephen Gay, 147 00:08:00,260 --> 00:08:04,020 general manager of water utilities present to answer any questions you may have in 148 00:08:04,020 --> 00:08:04,540 reference to that. 149 00:08:04,540 --> 00:08:07,740 >> I just have a quick question. 150 00:08:09,900 --> 00:08:11,540 You are here, sir, I'm sorry I didn't see you. 151 00:08:11,540 --> 00:08:15,620 I thought I was going to be asking it through Mr. Dixon. 152 00:08:15,620 --> 00:08:16,140 Thank you. 153 00:08:16,140 --> 00:08:22,740 >> Yeah, good morning. 154 00:08:22,740 --> 00:08:23,900 >> Good morning and happy new year. 155 00:08:23,900 --> 00:08:25,220 >> Happy new year to you as well. 156 00:08:25,220 --> 00:08:31,700 Stephen Gay, utilities and street operations general manager. 157 00:08:31,700 --> 00:08:32,980 How may I help you? 158 00:08:32,980 --> 00:08:35,860 >> I was wondering, when we originally, you presented this to us, 159 00:08:35,860 --> 00:08:38,900 you told us the thing would be probably wrapped up in a couple of weeks. 160 00:08:38,900 --> 00:08:42,220 It does appear from the memo, it took a little bit longer than that, obviously. 161 00:08:42,220 --> 00:08:42,900 >> Yeah. 162 00:08:42,900 --> 00:08:48,020 >> And are there any other things that we can look forward to in terms of 163 00:08:48,020 --> 00:08:50,900 continuing repairs in these areas? 164 00:08:50,900 --> 00:08:54,460 >> Yeah, we've actually implemented a program to go through and 165 00:08:54,460 --> 00:08:58,020 systematically remove the filter media from each filter, 166 00:08:58,020 --> 00:09:01,540 investigate or inspect the under drain system, and 167 00:09:01,540 --> 00:09:05,660 then initiate repairs should we deem necessary. 168 00:09:05,660 --> 00:09:06,980 So it's an ongoing process. 169 00:09:06,980 --> 00:09:09,420 We have 16 filters at this site. 170 00:09:09,420 --> 00:09:15,340 And so two of them failed, and we're just going to go through each of them systematically to evaluate. 171 00:09:15,340 --> 00:09:17,140 >> So do you have a time of year you're doing now? 172 00:09:17,140 --> 00:09:22,580 >> Yes, low demand, we're doing it right now in the winter months, yes, sir. 173 00:09:22,580 --> 00:09:24,460 >> Excellent, thank you. 174 00:09:24,460 --> 00:09:24,960 >> You're welcome. 175 00:09:24,960 --> 00:09:34,340 >> And aside from that, that was the only new business action item that we had for 176 00:09:34,340 --> 00:09:39,180 this meeting, and if there was anything else that you all would like followed up on, 177 00:09:39,180 --> 00:09:40,580 we'd be happy to bring that back to you. 178 00:09:40,580 --> 00:09:44,060 >> Are there any items for new business? 179 00:09:44,060 --> 00:09:45,860 Thank you. 180 00:09:45,860 --> 00:09:46,380 >> All right, thank you. 181 00:09:46,380 --> 00:09:51,700 >> Chair would entertain a motion for adjournment. 182 00:09:51,700 --> 00:09:53,340 >> I'll move. 183 00:09:53,340 --> 00:09:55,820 >> Congratulations, and I move. 184 00:09:55,820 --> 00:09:56,320 >> Thank you.