WEBVTT 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 00:00:07.940 --> 00:00:14.500 the City of Denton on Monday, January 13th at 2025. 00:00:14.500 --> 00:00:18.180 The first item of business is presentations of members to the public. 00:00:18.180 --> 00:00:20.100 Did we have anyone sign up, Cassie? 00:00:20.100 --> 00:00:23.020 No? All right, then we'll move on to the consent agenda. 00:00:23.020 --> 00:00:26.260 Does any board member wish to pull items A through D? 00:00:26.260 --> 00:00:29.420 Okay, seeing none. 00:00:29.420 --> 00:00:33.040 Do we have a motion to approve items A through D on the consent? 00:00:33.040 --> 00:00:33.700 >> So moved. 00:00:33.700 --> 00:00:34.700 >> Second. 00:00:34.700 --> 00:00:36.940 >> Okay, least moved. 00:00:36.940 --> 00:00:37.740 Rob seconded. 00:00:37.740 --> 00:00:39.020 All in favor say aye. 00:00:39.020 --> 00:00:39.520 >> Aye. 00:00:39.520 --> 00:00:48.220 >> Next item is receive nominations and hold elections for the Chair, Vice Chair, and Secretary. 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 00:00:53.380 --> 00:00:56.580 have other people maybe take that role. 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. 00:01:03.580 --> 00:01:05.540 Do we have any other nominations? 00:01:05.540 --> 00:01:09.500 I see none. 00:01:09.500 --> 00:01:14.020 Okay, do we have a motion to approve the nominations? 00:01:14.020 --> 00:01:15.180 >> So moved. 00:01:15.180 --> 00:01:16.380 >> Rob moves, second? 00:01:16.380 --> 00:01:20.380 Lee seconds, all in favor say aye. 00:01:20.380 --> 00:01:21.620 >> Aye. >> Aye. 00:01:21.620 --> 00:01:23.540 All right, now we change seats. 00:01:26.260 --> 00:01:27.740 We'll keep the name plates. 00:01:27.740 --> 00:01:30.740 >> [LAUGH] 00:01:30.740 --> 00:01:34.140 >> Now I understand why you dressed up. 00:01:34.140 --> 00:01:34.980 >> I wore that. 00:01:34.980 --> 00:01:39.140 >> [LAUGH] 00:01:39.140 --> 00:01:39.860 >> Good morning. 00:01:39.860 --> 00:01:46.780 So our next item of business is to consider approval of the December 9th, 2024 minutes. 00:01:46.780 --> 00:01:48.900 Do we have a motion? 00:01:48.900 --> 00:01:50.460 >> Move approval. 00:01:50.460 --> 00:01:51.740 >> We have a motion, do we have a second? 00:01:51.740 --> 00:01:55.180 Lee seconds. 00:01:55.180 --> 00:01:56.220 All in favor say aye. 00:01:56.220 --> 00:01:58.180 >> Aye. >> Opposed? 00:01:58.180 --> 00:01:59.140 Carries unanimously. 00:01:59.140 --> 00:02:03.660 And then our next item for individual consideration. 00:02:03.660 --> 00:02:07.700 Consider recommending adoption of an ordinance to the city of Denton authorizing the city 00:02:07.700 --> 00:02:10.860 manager to execute a contract with WEG Transformers for 00:02:10.860 --> 00:02:15.300 the purchase of substation power transformers for Denton Municipal Electric. 00:02:15.300 --> 00:02:19.180 Totaling for three years with an option for 00:02:19.180 --> 00:02:25.740 two one year extensions not to exceed $24,890,000. 00:02:25.740 --> 00:02:28.380 Good morning, Mark Zimmer, DME Engineering. 00:02:28.380 --> 00:02:31.420 For your consideration this morning is a contract to purchase substation power 00:02:31.420 --> 00:02:36.660 transformers for DME's capital improvement projects. 00:02:36.660 --> 00:02:42.980 Substation power transformers reside in DME substations and 00:02:42.980 --> 00:02:46.420 convert the transmission voltage down to a distribution voltage. 00:02:46.420 --> 00:02:51.740 These devices are the most expensive and the most important devices in our substations. 00:02:54.100 --> 00:02:58.780 DME has several approved capital projects that require purchase of substation power 00:02:58.780 --> 00:02:59.380 transformers. 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 00:03:03.260 --> 00:03:06.540 what a typical substation power transformer looks like. 00:03:06.540 --> 00:03:15.860 So DME prepared a technical specification, issued an RFP and received three bids. 00:03:15.860 --> 00:03:19.940 They were evaluated using the criteria you see here on the screen. 00:03:19.940 --> 00:03:22.180 WEG Transformers was evaluated to the highest. 00:03:24.260 --> 00:03:28.820 Total contract price was calculated using the quantity of transformers we need for 00:03:28.820 --> 00:03:32.620 these projects, spare parts and a 10% contingency. 00:03:32.620 --> 00:03:36.940 That 10% contingency will be used in case any redesign is needed or 00:03:36.940 --> 00:03:38.980 any special features are needed for certain projects. 00:03:38.980 --> 00:03:45.300 WEG Transformers USA LLC is the highest evaluated proposal and 00:03:45.300 --> 00:03:48.220 DME recommends award of contract with WEG Transformers. 00:03:48.220 --> 00:03:49.740 Any questions? 00:03:49.740 --> 00:03:51.400 Yes, sir. 00:03:51.400 --> 00:03:56.620 >> All right, three. 00:03:56.620 --> 00:04:03.380 So the first three, we need two additional ones. 00:04:03.380 --> 00:04:05.540 Are you saying two additional ones for Underwood? 00:04:05.540 --> 00:04:09.900 One additional for Jim Crystal and then two for Southwest. 00:04:09.900 --> 00:04:14.820 And then the substation, so those will be five brand new ones. 00:04:14.820 --> 00:04:16.820 >> Right, those will be five. 00:04:16.820 --> 00:04:20.580 >> And then the substation for Fort Worth, that'd be two brand new ones. 00:04:20.580 --> 00:04:22.460 We're just, okay. 00:04:22.460 --> 00:04:24.340 >> So seven total units under this contract. 00:04:24.340 --> 00:04:27.900 Again, it doesn't require us to spend this amount. 00:04:27.900 --> 00:04:30.740 It's just we have a contract to purchase them for projects when they're needed. 00:04:30.740 --> 00:04:35.940 Yes, sir. 00:04:35.940 --> 00:04:40.380 >> So this is all part of the high voltage upgrade that we're currently undergoing? 00:04:40.380 --> 00:04:41.020 >> Yes, sir. 00:04:41.020 --> 00:04:45.220 These transformers will support the 25 KV initiative that's being done at DME. 00:04:48.700 --> 00:04:55.380 >> And so of the five, the top three stations there, are they replacing current equipment? 00:04:55.380 --> 00:04:56.740 >> No, sir, these are brand new. 00:04:56.740 --> 00:05:00.900 It's just the bottom Fort Worth substation has two transformers that are seeing 00:05:00.900 --> 00:05:04.220 overloads in the future, and so we need to replace them with larger units. 00:05:04.220 --> 00:05:06.980 The top three projects are all brand new transformers. 00:05:06.980 --> 00:05:12.220 >> And are we standardizing on this size, or is it all just project based? 00:05:12.220 --> 00:05:15.340 >> We are, yeah, and we've always standardized on a size. 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. 00:05:21.980 --> 00:05:25.940 And now we're standardizing on a larger 50 MBA unit. 00:05:25.940 --> 00:05:28.140 It'll serve, of course, more customers on it, and 00:05:28.140 --> 00:05:31.780 we're changing to the 25 KV distribution voltage. 00:05:31.780 --> 00:05:33.020 That'll be our standard moving forward. 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. 00:05:40.860 --> 00:05:43.820 Is that one of those, and I just don't recognize the name, or 00:05:43.820 --> 00:05:46.700 is that stand alone in good shape? 00:05:46.700 --> 00:05:47.740 >> Bonnie Bray substation? 00:05:47.740 --> 00:05:48.240 >> Yeah. 00:05:48.240 --> 00:05:51.180 >> There's two on Bonnie Bray. 00:05:51.180 --> 00:05:54.060 >> Well, the one that we're going to be moving across the street. 00:05:54.060 --> 00:05:55.820 >> Okay, so Hickory substation. 00:05:55.820 --> 00:05:57.300 >> Is that what that, okay, I wasn't sure. 00:05:57.300 --> 00:05:58.580 >> Yeah, that is not included in here. 00:05:58.580 --> 00:06:00.420 That already has new transformers. 00:06:00.420 --> 00:06:00.920 >> Okay. 00:06:00.920 --> 00:06:03.820 Could we go to page five, please? 00:06:03.820 --> 00:06:04.320 >> Yes, sir. 00:06:04.320 --> 00:06:06.320 >> One more. 00:06:06.320 --> 00:06:13.380 So I'm curious, the WEG transformers, are they on our approved list, 00:06:13.380 --> 00:06:17.140 or is this something that we don't need to worry about 00:06:17.140 --> 00:06:20.620 when we do bids like this for those type of units? 00:06:20.620 --> 00:06:24.680 >> No, they're not an approved list necessarily. 00:06:24.680 --> 00:06:26.740 I'm not sure that we have that for these types of items. 00:06:26.740 --> 00:06:28.780 >> Is that necessary for purchasing like that? 00:06:28.780 --> 00:06:30.780 That's what I'm curious about. 00:06:30.780 --> 00:06:33.860 >> Right, we received several bids and evaluated them. 00:06:33.860 --> 00:06:36.500 Of course, this was the highest proposal. 00:06:36.500 --> 00:06:39.300 They were the ones that met our technical specifications and 00:06:39.300 --> 00:06:43.300 could deliver on our project timelines. 00:06:44.100 --> 00:06:46.220 So, yes, sir. 00:06:46.220 --> 00:06:49.300 >> I am also unfamiliar with this name, WEG Transformers. 00:06:49.300 --> 00:06:50.700 Are they a new company? 00:06:50.700 --> 00:06:52.940 Are they a renamed older company? 00:06:52.940 --> 00:06:54.060 >> No, they've been around a while. 00:06:54.060 --> 00:06:56.060 They're actually from Mexico. 00:06:56.060 --> 00:06:58.620 So the manufacturing location is in Mexico. 00:06:58.620 --> 00:07:00.820 We actually own a WEG transformer now. 00:07:00.820 --> 00:07:05.220 It's been in service for seven or eight years with no issue. 00:07:05.220 --> 00:07:07.260 So we're fairly comfortable with using them. 00:07:07.260 --> 00:07:11.340 The manufacturer we used to use, which was Waukesha, 00:07:11.340 --> 00:07:13.660 their lead times are four or five years now. 00:07:13.660 --> 00:07:16.540 So we just we can't use them, unfortunately. 00:07:16.540 --> 00:07:25.700 >> Seeing no other questions, I'd entertain a motion. 00:07:25.700 --> 00:07:29.900 >> Move to approve. 00:07:29.900 --> 00:07:33.180 >> We have a motion and second from Rob. 00:07:33.180 --> 00:07:34.060 All in favor? 00:07:34.060 --> 00:07:35.900 >> Aye. 00:07:35.900 --> 00:07:36.940 >> Carries unanimously. 00:07:36.940 --> 00:07:37.700 >> Thank you. 00:07:37.700 --> 00:07:40.300 >> Our next item of business is management reports. 00:07:42.140 --> 00:07:44.860 >> Good morning, Mr. Chair and members. 00:07:44.860 --> 00:07:50.060 You would have received in your packet a memo from water utilities for 00:07:50.060 --> 00:07:55.460 Lake Louisville filter restoration question that came in 00:07:55.460 --> 00:07:58.780 during your November 18th meeting. 00:07:58.780 --> 00:08:00.260 And we do have Stephen Gay, 00:08:00.260 --> 00:08:04.020 general manager of water utilities present to answer any questions you may have in 00:08:04.020 --> 00:08:04.540 reference to that. 00:08:04.540 --> 00:08:07.740 >> I just have a quick question. 00:08:09.900 --> 00:08:11.540 You are here, sir, I'm sorry I didn't see you. 00:08:11.540 --> 00:08:15.620 I thought I was going to be asking it through Mr. Dixon. 00:08:15.620 --> 00:08:16.140 Thank you. 00:08:16.140 --> 00:08:22.740 >> Yeah, good morning. 00:08:22.740 --> 00:08:23.900 >> Good morning and happy new year. 00:08:23.900 --> 00:08:25.220 >> Happy new year to you as well. 00:08:25.220 --> 00:08:31.700 Stephen Gay, utilities and street operations general manager. 00:08:31.700 --> 00:08:32.980 How may I help you? 00:08:32.980 --> 00:08:35.860 >> I was wondering, when we originally, you presented this to us, 00:08:35.860 --> 00:08:38.900 you told us the thing would be probably wrapped up in a couple of weeks. 00:08:38.900 --> 00:08:42.220 It does appear from the memo, it took a little bit longer than that, obviously. 00:08:42.220 --> 00:08:42.900 >> Yeah. 00:08:42.900 --> 00:08:48.020 >> And are there any other things that we can look forward to in terms of 00:08:48.020 --> 00:08:50.900 continuing repairs in these areas? 00:08:50.900 --> 00:08:54.460 >> Yeah, we've actually implemented a program to go through and 00:08:54.460 --> 00:08:58.020 systematically remove the filter media from each filter, 00:08:58.020 --> 00:09:01.540 investigate or inspect the under drain system, and 00:09:01.540 --> 00:09:05.660 then initiate repairs should we deem necessary. 00:09:05.660 --> 00:09:06.980 So it's an ongoing process. 00:09:06.980 --> 00:09:09.420 We have 16 filters at this site. 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. 00:09:15.340 --> 00:09:17.140 >> So do you have a time of year you're doing now? 00:09:17.140 --> 00:09:22.580 >> Yes, low demand, we're doing it right now in the winter months, yes, sir. 00:09:22.580 --> 00:09:24.460 >> Excellent, thank you. 00:09:24.460 --> 00:09:24.960 >> You're welcome. 00:09:24.960 --> 00:09:34.340 >> And aside from that, that was the only new business action item that we had for 00:09:34.340 --> 00:09:39.180 this meeting, and if there was anything else that you all would like followed up on, 00:09:39.180 --> 00:09:40.580 we'd be happy to bring that back to you. 00:09:40.580 --> 00:09:44.060 >> Are there any items for new business? 00:09:44.060 --> 00:09:45.860 Thank you. 00:09:45.860 --> 00:09:46.380 >> All right, thank you. 00:09:46.380 --> 00:09:51.700 >> Chair would entertain a motion for adjournment. 00:09:51.700 --> 00:09:53.340 >> I'll move. 00:09:53.340 --> 00:09:55.820 >> Congratulations, and I move. 00:09:55.820 --> 00:09:56.320 >> Thank you.