1 00:00:00,000 --> 00:00:07,240 Good morning, I'd like to call to order the public utility board meeting, the public utility 2 00:00:07,240 --> 00:00:12,120 board of the city of Denton meeting of Monday, June 9th, 2025 to order. 3 00:00:12,120 --> 00:00:13,120 It is 9 a.m. 4 00:00:13,120 --> 00:00:16,960 We have six members of the board, so there is a quorum. 5 00:00:16,960 --> 00:00:19,240 Are there any presentations from members of the public? 6 00:00:19,240 --> 00:00:21,200 No, there are not. 7 00:00:21,200 --> 00:00:22,200 No surprise. 8 00:00:22,200 --> 00:00:23,200 All right. 9 00:00:23,200 --> 00:00:26,480 We've got a consent agenda. 10 00:00:26,480 --> 00:00:30,280 Would any members like to pull any items? 11 00:00:30,280 --> 00:00:31,280 Mr. Ryback. 12 00:00:31,280 --> 00:00:32,280 Item G. 13 00:00:32,280 --> 00:00:33,680 Pulling item G. 14 00:00:33,680 --> 00:00:40,960 I'd like to pull item C as in cat. 15 00:00:40,960 --> 00:00:46,560 We will entertain a motion to approve items A, B, D, E and F. 16 00:00:46,560 --> 00:00:47,560 So moved. 17 00:00:47,560 --> 00:00:49,120 We have a motion from Ms. Parker. 18 00:00:49,120 --> 00:00:50,120 Second. 19 00:00:50,120 --> 00:00:51,120 Second from Mr. Plot. 20 00:00:51,120 --> 00:00:52,120 All those in favor, please say aye. 21 00:00:52,120 --> 00:00:53,120 Aye. 22 00:00:53,120 --> 00:00:54,120 Any opposed, sign the same. 23 00:00:54,120 --> 00:00:56,800 It passes unanimously. 24 00:00:56,800 --> 00:01:08,240 Moving on to item C. My question is just in a nutshell, why do we have to pull it? 25 00:01:08,240 --> 00:01:11,080 So Mr. Chair, Tony pointed to the general manager. 26 00:01:11,080 --> 00:01:17,400 So this is a joint project with the water, wastewater, solid waste and the electric utility. 27 00:01:17,400 --> 00:01:22,880 We did do an RFP for this charter mandated study. 28 00:01:22,880 --> 00:01:26,040 The charter requires that we do a management study every 10 years. 29 00:01:26,040 --> 00:01:34,800 The last one was in 2018, but after reviewing the proposals and looking at the scope that 30 00:01:34,800 --> 00:01:41,640 we had originally provided, there was just a lack of proposals that I think met the full 31 00:01:41,640 --> 00:01:42,640 scope. 32 00:01:42,640 --> 00:01:48,600 And so the proposal here is to reject these proposals, rework the scope and then reissue 33 00:01:48,600 --> 00:01:51,600 the RFP and then come back. 34 00:01:51,600 --> 00:01:57,920 Okay, I just wasn't clear on that because it said something about a lack of personnel 35 00:01:57,920 --> 00:02:00,920 in there as well. 36 00:02:00,920 --> 00:02:05,320 Yeah, I think that's probably the other issue too, is that we have seen some turnover in 37 00:02:05,320 --> 00:02:08,280 the utilities and making sure that we have manpower to do that. 38 00:02:08,280 --> 00:02:10,280 So there's a little bit of a delay needed though. 39 00:02:10,280 --> 00:02:15,800 I don't think that part's going to change anytime soon with any company or government 40 00:02:15,800 --> 00:02:16,800 entity. 41 00:02:16,800 --> 00:02:17,800 Maybe so. 42 00:02:17,800 --> 00:02:18,800 All right. 43 00:02:18,800 --> 00:02:24,640 Was there anything else about the scope that was difficult for the respondents to comply 44 00:02:24,640 --> 00:02:25,640 with? 45 00:02:25,640 --> 00:02:31,320 Yeah, I think there was just an overall lacking on the electric side, really to be honest 46 00:02:31,320 --> 00:02:32,320 with you. 47 00:02:32,320 --> 00:02:38,080 The level of responses just didn't seem to fulfill I think what was needed to really 48 00:02:38,080 --> 00:02:42,480 evaluate the electric utility was kind of the primary area. 49 00:02:42,480 --> 00:02:45,600 Thank you. 50 00:02:45,600 --> 00:02:51,520 Any additional questions, if not an entertaining motion to approve, well we do them both, right? 51 00:02:51,520 --> 00:02:52,520 Yeah. 52 00:02:52,520 --> 00:02:53,520 Okay. 53 00:02:53,520 --> 00:02:56,840 All right, let's go on to item G. Mr. Rybeck, you pulled that one. 54 00:02:56,840 --> 00:03:00,440 Okay, all right, what's, all right. 55 00:03:00,440 --> 00:03:03,600 Item C, an entertaining motion to approve item C. 56 00:03:03,600 --> 00:03:04,600 So moved. 57 00:03:04,600 --> 00:03:07,680 We have a motion for Mr. Rybeck. 58 00:03:07,680 --> 00:03:08,680 Second. 59 00:03:08,680 --> 00:03:09,680 Second. 60 00:03:09,680 --> 00:03:11,680 Second from Ms. Parker. 61 00:03:11,680 --> 00:03:13,600 All those in favor, please say aye. 62 00:03:13,600 --> 00:03:14,600 Aye. 63 00:03:14,600 --> 00:03:15,600 Opposed? 64 00:03:15,600 --> 00:03:16,600 Sign the same. 65 00:03:16,600 --> 00:03:17,600 Passes 6-0. 66 00:03:17,600 --> 00:03:21,800 All right, item G. Good morning. 67 00:03:21,800 --> 00:03:22,800 Good morning. 68 00:03:22,800 --> 00:03:25,120 Dante Hale, Capital Projects Project Manager. 69 00:03:25,120 --> 00:03:26,120 Thank you. 70 00:03:26,120 --> 00:03:29,920 I read the agenda information sheet and I was a little bit confused about dates. 71 00:03:29,920 --> 00:03:31,160 Yes, sir. 72 00:03:31,160 --> 00:03:35,360 One said something had to be done before the school year started this year, and then another 73 00:03:35,360 --> 00:03:40,320 thing referred to the project wouldn't be completed until second quarter of next year, 74 00:03:40,320 --> 00:03:45,040 so I was a little confused about which date, or is there some portion of the project that 75 00:03:45,040 --> 00:03:46,040 needs to move forward? 76 00:03:46,040 --> 00:03:47,040 Yes, sir. 77 00:03:47,040 --> 00:03:49,040 Sorry about the confusion. 78 00:03:49,040 --> 00:03:51,360 That was my fault. 79 00:03:51,360 --> 00:03:56,520 So to clarify, we are seeking to split this project into two phases, this first phase 80 00:03:56,520 --> 00:04:03,000 starting first to expedite a portion of Westgate East-West so that we can try and alleviate 81 00:04:03,000 --> 00:04:06,840 some of the congestion that is being experienced at the new school. 82 00:04:06,840 --> 00:04:13,720 So the goal is to try and work with the contractor to have a portion of that roadway paved so 83 00:04:13,720 --> 00:04:19,200 that we can get traffic out onto the frontage road of I-35, and the overall completion of 84 00:04:19,200 --> 00:04:20,520 the project would be quarter two. 85 00:04:20,520 --> 00:04:27,000 Well, I'm going to ask a dumb question, but it's already June, so is there enough time 86 00:04:27,000 --> 00:04:30,000 left for them to execute that before the start of school? 87 00:04:30,000 --> 00:04:31,400 It will be tight. 88 00:04:31,400 --> 00:04:36,340 The goal is if we are approved next week with the City Council is to work with the contractor 89 00:04:36,340 --> 00:04:40,760 to see what we can do to expedite that, and the goal is to try and get a portion of that 90 00:04:40,760 --> 00:04:44,520 paved as quickly as possible so that we can alleviate that traffic on the East and West 91 00:04:44,520 --> 00:04:45,520 portion of Westgate. 92 00:04:45,520 --> 00:04:47,840 Well, that should prove to be challenging. 93 00:04:47,840 --> 00:04:48,840 Yes, sir. 94 00:04:48,840 --> 00:04:53,880 I would recommend that you clarify that in your agenda information before it goes forward 95 00:04:53,880 --> 00:04:54,880 to Council. 96 00:04:54,880 --> 00:04:55,880 Yes, sir. 97 00:04:55,880 --> 00:04:56,880 Thank you for that recommendation. 98 00:04:56,880 --> 00:05:01,480 Otherwise, it seemed fine by just looking at this date, which is which, so thank you. 99 00:05:01,480 --> 00:05:02,480 Completely understand. 100 00:05:02,480 --> 00:05:03,480 Apologies. 101 00:05:03,480 --> 00:05:04,480 Okay. 102 00:05:04,480 --> 00:05:07,760 Any other questions? 103 00:05:07,760 --> 00:05:08,760 I have one. 104 00:05:08,760 --> 00:05:13,960 Is that a typo on one of the contractor's bids for $900,000? 105 00:05:13,960 --> 00:05:23,240 Did you leave a three off of there, maybe? 106 00:05:23,240 --> 00:05:24,560 Sorry. 107 00:05:24,560 --> 00:05:28,280 Urbans, urban infrastructure. 108 00:05:28,280 --> 00:05:36,040 On our sheet, it shows the total proposal amount of everybody else to be 3.6 and up, 109 00:05:36,040 --> 00:05:42,600 and their bid tabulation shows to be $988,000. 110 00:05:42,600 --> 00:05:44,600 I believe that may have been a typo. 111 00:05:44,600 --> 00:05:45,600 Just a typo. 112 00:05:45,600 --> 00:05:46,600 Okay. 113 00:05:46,600 --> 00:05:55,480 Otherwise, their price would have beat everybody else, and I'm sure it would have been withdrawn. 114 00:05:55,480 --> 00:05:56,480 Okay. 115 00:05:56,480 --> 00:05:58,920 No additional questions? 116 00:05:58,920 --> 00:06:01,480 I entertain a motion to approve. 117 00:06:01,480 --> 00:06:02,480 So moved. 118 00:06:02,480 --> 00:06:03,480 We have a motion. 119 00:06:03,480 --> 00:06:06,600 Do we have a second? 120 00:06:06,600 --> 00:06:12,480 Aaron, he has the second. 121 00:06:12,480 --> 00:06:13,480 All those in favor, please say aye. 122 00:06:13,480 --> 00:06:14,480 Aye. 123 00:06:14,480 --> 00:06:15,480 Any opposed, sign the same. 124 00:06:15,480 --> 00:06:16,480 All right. 125 00:06:16,480 --> 00:06:17,480 Thank you. 126 00:06:17,480 --> 00:06:20,480 Oh, I thought you were doing well. 127 00:06:20,480 --> 00:06:26,840 Should we note that I arrived during that last item? 128 00:06:26,840 --> 00:06:29,120 Oh, okay. 129 00:06:29,120 --> 00:06:30,120 You didn't vote? 130 00:06:30,120 --> 00:06:32,120 Or you did vote? 131 00:06:32,120 --> 00:06:33,120 Okay. 132 00:06:33,120 --> 00:06:34,120 You're fine. 133 00:06:34,120 --> 00:06:35,120 Yeah. 134 00:06:35,120 --> 00:06:36,120 You heard most of what you needed to hear. 135 00:06:36,120 --> 00:06:37,120 Yeah. 136 00:06:37,120 --> 00:06:40,940 You would have protested otherwise. 137 00:06:40,940 --> 00:06:43,680 Mr. Harris has entered the building. 138 00:06:43,680 --> 00:06:52,180 All right, we're moving on to number three items for individual consideration. 139 00:06:52,180 --> 00:06:58,080 First one is the consideration of the approval of the minutes of May 19th. 140 00:06:58,080 --> 00:06:59,080 Entertain a motion to approve. 141 00:06:59,080 --> 00:07:00,080 So moved. 142 00:07:00,080 --> 00:07:07,840 We'll take a motion or a motion and a second motion from Rob and second from Devin. 143 00:07:07,840 --> 00:07:09,160 All those in favor, please say aye. 144 00:07:09,160 --> 00:07:10,160 Aye. 145 00:07:10,160 --> 00:07:11,160 Passes unanimously. 146 00:07:11,160 --> 00:07:17,920 We're moving on to 3B, consider recommending adoption of the ordinance to execute a contract 147 00:07:17,920 --> 00:07:19,840 with Holt, Texas. 148 00:07:19,840 --> 00:07:26,800 Good morning, Tom Green, Director of Facilities and Fleet Services. 149 00:07:26,800 --> 00:07:31,000 This response contract is with Holt, Texas, which is Holt Caterpillar. 150 00:07:31,000 --> 00:07:33,160 They are off the buy board. 151 00:07:33,160 --> 00:07:36,760 The City of Denton Fleet Services Department purchases, repairs, maintains, and runs various 152 00:07:36,760 --> 00:07:40,240 types of Caterpillar construction equipment utilized by several departments to support 153 00:07:40,240 --> 00:07:41,800 the city's services. 154 00:07:41,800 --> 00:07:44,940 The construction equipment is utilized by multiple departments to provide the services 155 00:07:44,940 --> 00:07:50,840 to include moving of the bulk materials, loaders, and excavators at the landfill and the streets 156 00:07:50,840 --> 00:07:51,840 department. 157 00:07:51,840 --> 00:07:54,720 The proposed contract allows for the purchase, rental, and repair of these assets utilized 158 00:07:54,720 --> 00:07:57,360 by the several departments as mentioned. 159 00:07:57,360 --> 00:08:01,880 The services provided by this contract ensure that the assets remained up and running. 160 00:08:01,880 --> 00:08:06,520 They have special diagnostic equipment that's required to repair them, and the technical 161 00:08:06,520 --> 00:08:08,680 knowledge to make sure that they're operational. 162 00:08:08,680 --> 00:08:12,560 All vehicles and equipment will be acquired through the city's budgeting process, and 163 00:08:12,560 --> 00:08:15,880 the city will only pay for services rendered, and we are not obligated to spend the full 164 00:08:15,880 --> 00:08:18,200 amount of this contract. 165 00:08:18,200 --> 00:08:21,760 Here are the contract estimates by department and fund of what we would traditionally see. 166 00:08:21,760 --> 00:08:26,200 Again, these are projections based off of a collaborative effort with the utility departments. 167 00:08:26,200 --> 00:08:30,280 On the right-hand side, you'll see that an acquisition example is the trash compactor. 168 00:08:30,280 --> 00:08:36,480 One piece of equipment alone is over $1 million, therefore resulting in the large ask for this 169 00:08:36,480 --> 00:08:37,720 contract. 170 00:08:37,720 --> 00:08:40,600 Staff recommends approval of a one-year with four additional one-year extensions and a 171 00:08:40,600 --> 00:08:47,640 total of five years not to exceed the amount with Whole Texas for $14,983,500. 172 00:08:47,640 --> 00:08:48,640 Any questions? 173 00:08:48,640 --> 00:08:49,640 Mr. Rebic. 174 00:08:49,640 --> 00:08:55,360 Could you go back a couple of slides where you have your projection? 175 00:08:55,360 --> 00:08:57,360 Of course. 176 00:08:57,360 --> 00:09:03,640 So in your asset replacements, what are you anticipating will be in need of replacement 177 00:09:03,640 --> 00:09:05,240 over the next several years? 178 00:09:05,240 --> 00:09:06,240 Absolutely. 179 00:09:06,240 --> 00:09:09,540 For this fiscal year, we have two articulating dump trucks at the landfill that are scheduled 180 00:09:09,540 --> 00:09:11,040 for replacements. 181 00:09:11,040 --> 00:09:13,280 Those are over $1 million a piece. 182 00:09:13,280 --> 00:09:18,280 Those are those off-road dump trucks that you see that have the open rear end tailgate, 183 00:09:18,280 --> 00:09:21,760 the big construction equipment, six wheels, big tires. 184 00:09:21,760 --> 00:09:24,480 They utilize that to move the block material to landfill. 185 00:09:24,480 --> 00:09:27,240 There's a couple backhoe acquisitions that need to be made for replacements throughout 186 00:09:27,240 --> 00:09:32,240 the year, and of course the mini excavators and other various CAD equipment that's used 187 00:09:32,240 --> 00:09:36,320 to move the material and/or excavate for the utilities. 188 00:09:36,320 --> 00:09:43,600 I was just thinking it might be useful as you move this forward to Council to maybe 189 00:09:43,600 --> 00:09:50,240 give some note about what those asset replacements look like over the next coming, if not the 190 00:09:50,240 --> 00:09:52,080 whole term, at least a few years hence. 191 00:09:52,080 --> 00:09:53,080 Yes, sir. 192 00:09:53,080 --> 00:09:54,080 Noted. 193 00:09:54,080 --> 00:09:55,080 Thank you. 194 00:09:55,080 --> 00:09:56,080 Mr. Rayner. 195 00:09:56,080 --> 00:10:02,080 What's the life expectancy, like the question that was just asked, that equipment? 196 00:10:02,080 --> 00:10:05,160 Well, the life expectancy of each equipment varies. 197 00:10:05,160 --> 00:10:08,000 Equipment to landfill we try to get seven years out of. 198 00:10:08,000 --> 00:10:12,720 Of course with the corrosiveness of the trash, it may not last that long, or depending if 199 00:10:12,720 --> 00:10:14,240 we change the operation. 200 00:10:14,240 --> 00:10:19,080 We have scheduled each asset to be 10 to 15 years of expected life to really utilize that 201 00:10:19,080 --> 00:10:20,080 equipment throughout. 202 00:10:20,080 --> 00:10:23,660 We believe with our good maintenance program that we can get a little bit more than expected, 203 00:10:23,660 --> 00:10:27,160 and that's where we're at for most of the Caterpillar construction equipment is 10 to 204 00:10:27,160 --> 00:10:28,160 15 years. 205 00:10:28,160 --> 00:10:33,280 An example of the trash compactor, and there's a picture of what would be the life expectancy 206 00:10:33,280 --> 00:10:35,060 that you would like on that one. 207 00:10:35,060 --> 00:10:38,400 The trash compactors see the most use actually at the landfill. 208 00:10:38,400 --> 00:10:41,260 They're ran every day, all day, and there's two of them. 209 00:10:41,260 --> 00:10:44,800 We see about five to seven years before they need an overhaul, and then an additional five 210 00:10:44,800 --> 00:10:47,640 to seven years of continued operations. 211 00:10:47,640 --> 00:10:50,760 And the overhaul, tell me what that is. 212 00:10:50,760 --> 00:10:55,040 Traditionally it would be the wearable items like a transmission or an engine and driveline 213 00:10:55,040 --> 00:10:56,040 items. 214 00:10:56,040 --> 00:10:57,040 Good. 215 00:10:57,040 --> 00:10:58,040 Thank you, sir. 216 00:10:58,040 --> 00:11:02,200 So you don't have a breakdown of the equipment that you plan to purchase? 217 00:11:02,200 --> 00:11:03,200 They're all projections. 218 00:11:03,200 --> 00:11:06,740 We do have that schedule list based off of our 15-point maintenance schedule and faster, 219 00:11:06,740 --> 00:11:09,200 so I can provide that in additional documentation. 220 00:11:09,200 --> 00:11:13,680 This year right now, the $2 million for replacement is the two articulating dump trucks. 221 00:11:13,680 --> 00:11:15,840 I'd have to look at my list for the future years. 222 00:11:15,840 --> 00:11:18,880 Okay, but you don't bring those back individually, do you? 223 00:11:18,880 --> 00:11:20,840 No, no, sir. 224 00:11:20,840 --> 00:11:21,840 Okay. 225 00:11:21,840 --> 00:11:30,640 So you've got two articulating trucks planned to buy through Caterpillar off the buy board? 226 00:11:30,640 --> 00:11:32,640 Yes, sir. 227 00:11:32,640 --> 00:11:33,640 Okay. 228 00:11:33,640 --> 00:11:37,680 So what you're calling a trash compactor, that's an 815, right? 229 00:11:37,680 --> 00:11:39,360 I'm not exactly sure of the model number. 230 00:11:39,360 --> 00:11:40,360 I don't know. 231 00:11:40,360 --> 00:11:46,080 That's what it looks like, just a regular compactor to me, but I didn't know if there's 232 00:11:46,080 --> 00:11:47,080 any difference or not. 233 00:11:47,080 --> 00:11:54,520 Do you end up getting different pad foots on them than a regular compactor? 234 00:11:54,520 --> 00:11:58,480 Pad foots and those greasing specifications are different because of the corrosiveness 235 00:11:58,480 --> 00:12:00,920 in the trash landfill. 236 00:12:00,920 --> 00:12:06,080 So the trash is very corrosive, so we have to use a little bit more heavy-duty items 237 00:12:06,080 --> 00:12:12,200 and repair cycles than you would at a normal dirt facility. 238 00:12:12,200 --> 00:12:14,800 Subgrade compactor or whatever? 239 00:12:14,800 --> 00:12:15,800 Okay. 240 00:12:15,800 --> 00:12:16,800 All right. 241 00:12:16,800 --> 00:12:24,040 So this approval is for the entire amount of $15 million for the next five years, is 242 00:12:24,040 --> 00:12:25,040 that correct? 243 00:12:25,040 --> 00:12:26,040 Yes, sir. 244 00:12:26,040 --> 00:12:27,040 All right. 245 00:12:27,040 --> 00:12:28,040 So none of this comes back, right? 246 00:12:28,040 --> 00:12:29,040 It does not. 247 00:12:29,040 --> 00:12:30,040 Okay. 248 00:12:30,040 --> 00:12:33,840 And this is the capacity to buy and to note that all of these asset acquisitions go through 249 00:12:33,840 --> 00:12:37,640 the city's budgeting cycle, so unless the department requests it, they have the funds, 250 00:12:37,640 --> 00:12:40,880 it goes through procurement, and then it goes through the budgeting process, do we make 251 00:12:40,880 --> 00:12:41,880 that acquisition? 252 00:12:41,880 --> 00:12:45,840 There's still a lot of approvals required to make an acquisition. 253 00:12:45,840 --> 00:12:49,840 But acquisition will come back through in the budget process. 254 00:12:49,840 --> 00:12:54,400 The dollar amount issued for debt or operating funds will go through the budgeting process, 255 00:12:54,400 --> 00:13:00,560 so when we do our fiscal year, there will be projections on what assets need to be replaced, 256 00:13:00,560 --> 00:13:04,120 what assets need to be bought now, and then that will be approved to move forward or, 257 00:13:04,120 --> 00:13:05,120 of course, adjusted. 258 00:13:05,120 --> 00:13:06,120 Okay. 259 00:13:06,120 --> 00:13:07,120 All right. 260 00:13:07,120 --> 00:13:11,960 So that's where our approval process is, in the budget. 261 00:13:11,960 --> 00:13:12,960 Right. 262 00:13:12,960 --> 00:13:13,960 Okay. 263 00:13:13,960 --> 00:13:16,040 That's all I got. 264 00:13:16,040 --> 00:13:20,680 It doesn't appear to be any additional questions, so we'll entertain a motion for approval. 265 00:13:20,680 --> 00:13:21,680 So moved. 266 00:13:21,680 --> 00:13:22,680 We have a motion to approve. 267 00:13:22,680 --> 00:13:28,400 We have a second from Mr. Rybak, but the motion was from Mr. Rayner. 268 00:13:28,400 --> 00:13:29,680 All those in favor, please say aye. 269 00:13:29,680 --> 00:13:30,680 Aye. 270 00:13:30,680 --> 00:13:31,680 Any opposed, sign the same. 271 00:13:31,680 --> 00:13:32,680 Thank you. 272 00:13:32,680 --> 00:13:33,680 Passes unanimously. 273 00:13:33,680 --> 00:13:34,680 Thank you. 274 00:13:34,680 --> 00:13:42,680 So we're on C now, management reports already. 275 00:13:42,680 --> 00:13:49,080 So, Mr. Chair, members of the board, don't have a whole lot of stuff to share with this 276 00:13:49,080 --> 00:13:50,080 morning. 277 00:13:50,080 --> 00:13:57,360 Just a reminder that starting June 23rd, kind of the budget process kind of begins in earnest 278 00:13:57,360 --> 00:14:04,240 here, so the finance department will be providing to you a financial update on the 23rd, July 279 00:14:04,240 --> 00:14:05,240 14th. 280 00:14:05,240 --> 00:14:09,960 They will be conducting a budget workshop with you on the various funds, and then the 281 00:14:09,960 --> 00:14:16,440 target is July 28th, that the PAB will consider approval and recommendation to the council 282 00:14:16,440 --> 00:14:21,360 on the various budgets and rate ordinances as well. 283 00:14:21,360 --> 00:14:26,220 And then for new business, we actually do not have any new business that we have pending 284 00:14:26,220 --> 00:14:31,680 with you, but certainly if there's anything else that you would like, please let us know. 285 00:14:31,680 --> 00:14:32,680 Mr. Rybak. 286 00:14:32,680 --> 00:14:38,440 Tony, I just wanted to let you know that I did review the report on the collections that 287 00:14:38,440 --> 00:14:42,520 I had asked for, even though I wasn't at the meeting, that I do want to thank finance for 288 00:14:42,520 --> 00:14:45,520 providing that to us. 289 00:14:45,520 --> 00:14:49,000 You're welcome on their behalf. 290 00:14:49,000 --> 00:14:50,560 All right. 291 00:14:50,560 --> 00:14:51,560 Any other? 292 00:14:51,560 --> 00:14:52,560 All right. 293 00:14:52,560 --> 00:14:57,000 Well, I think this is the point at which we move into the closed meeting, is that correct, 294 00:14:57,000 --> 00:15:08,920 to consider PUB25-078, and then we'll come back in to vote on item D. Who's going to 295 00:15:08,920 --> 00:15:10,840 be giving this presentation? 296 00:15:10,840 --> 00:15:11,840 You are? 297 00:15:11,840 --> 00:15:12,840 All right. 298 00:15:12,840 --> 00:15:13,840 It is 9/28. 299 00:15:13,840 --> 00:15:20,840 Public utility board has now at 9/28, public utility board has now at 9/28 a.m. 300 00:15:20,840 --> 00:15:31,440 Reconvened from the closed session as no official, and no official action was taken. 301 00:15:31,440 --> 00:15:36,240 All right, we're back on. 302 00:15:36,240 --> 00:15:45,040 So we are, is there any further discussion regarding item D? 303 00:15:45,040 --> 00:15:46,040 Yes. 304 00:15:46,040 --> 00:15:47,040 Okay. 305 00:15:47,040 --> 00:16:01,900 All right, good morning, PUB and board, Vispopentavong, ADF Finance, here to discuss ECA and TCRF. 306 00:16:01,900 --> 00:16:07,040 So just to provide a current policy and rate quickly, energy cost adjustment, currently 307 00:16:07,040 --> 00:16:13,960 it's at a plus or minus $10 million, and the rate is at .0462. 308 00:16:13,960 --> 00:16:17,000 Current cost recovery factor, we're recommending no changes. 309 00:16:17,000 --> 00:16:22,220 So those are the small, medium, large. 310 00:16:22,220 --> 00:16:27,640 So we do have a few adjustments that are coming today as, you know, when we talk about purchase 311 00:16:27,640 --> 00:16:31,960 power, you know, that fluctuates, you know, power goes up and down, especially between 312 00:16:31,960 --> 00:16:34,000 summer and the winter months. 313 00:16:34,000 --> 00:16:41,080 So one year of ECA monthly review and looking at 24 months, we think provides a better outlook 314 00:16:41,080 --> 00:16:46,560 just so we can look at the data at a longer period of time. 315 00:16:46,560 --> 00:16:49,720 And the next thing we want to talk about is the buffer. 316 00:16:49,720 --> 00:16:56,920 So going from 10 million to 20 million, and that 20 million is actually based on 60 days 317 00:16:56,920 --> 00:17:00,160 worth of average purchase power. 318 00:17:00,160 --> 00:17:09,560 But also maintaining the current rate at .0462 per kilowatts. 319 00:17:09,560 --> 00:17:14,200 This is the other recommendation is we wanted to create a new schedule, which is called 320 00:17:14,200 --> 00:17:15,440 large load. 321 00:17:15,440 --> 00:17:20,840 This large load is really looking at power that's over 20 megawatts. 322 00:17:20,840 --> 00:17:26,640 So the customers that pull power that's over 20 megawatts. 323 00:17:26,640 --> 00:17:31,280 And on this buffer, we're thinking we're looking at zero to 20 million. 324 00:17:31,280 --> 00:17:35,920 We're still going to forecast it just like the other ECA, looking at 12 months, but like 325 00:17:35,920 --> 00:17:41,640 I said before, looking at the history and looking at 24 months and the rate would be 326 00:17:41,640 --> 00:17:48,040 at .0515. 327 00:17:48,040 --> 00:17:56,720 So here is just a current look at the ECA in the T-server F, maintaining at .0462. 328 00:17:56,720 --> 00:18:00,400 By May, it'll get us around 13 million dollars. 329 00:18:00,400 --> 00:18:09,840 The T-server F maintaining at .0176, it'll give us about 4.6 million dollar balance. 330 00:18:09,840 --> 00:18:12,040 So here is the recommendation. 331 00:18:12,040 --> 00:18:20,140 So effective July 1st, we're coming to you to maintain the rate at .0462, but looking 332 00:18:20,140 --> 00:18:24,640 at the buffer going from 10 million to 20 million plus or minus. 333 00:18:24,640 --> 00:18:29,920 Like I said, T-server F, no change, but we'll still take a look at it. 334 00:18:29,920 --> 00:18:34,960 And then the new schedule we're talking about is the large load, is for the ECA. 335 00:18:34,960 --> 00:18:37,280 Create the new ECA large load schedule. 336 00:18:37,280 --> 00:18:41,760 We're still going to look at it on a monthly basis, but we could adjust it quarterly. 337 00:18:41,760 --> 00:18:50,680 And the buffer will be zero to 20 million dollars and the rate will be .0515 kilowatts. 338 00:18:50,680 --> 00:18:55,960 Any questions? 339 00:18:55,960 --> 00:19:01,720 So I think it's important as we add new rate schedules to treat all customers fairly. 340 00:19:01,720 --> 00:19:06,200 And I think this proposal seems to do that. 341 00:19:06,200 --> 00:19:11,680 Our long-term residents are kind of what we often refer to as our native load. 342 00:19:11,680 --> 00:19:17,760 The load that DME has had for the last 50 years and has been steadily growing has made 343 00:19:17,760 --> 00:19:20,820 lots of investments for energy. 344 00:19:20,820 --> 00:19:27,320 And so while these very large potential new customers, you know, we need to treat them 345 00:19:27,320 --> 00:19:34,700 fairly as well, but there is a potential for risk to our existing residential customer 346 00:19:34,700 --> 00:19:40,500 base in that these large loads could ramp very quickly, not allowing lots of pre-purchase 347 00:19:40,500 --> 00:19:44,280 time or the best rates in energy purchases. 348 00:19:44,280 --> 00:19:51,560 And they could ramp down quickly, which would have the potential to leave financial burden 349 00:19:51,560 --> 00:19:53,240 for our existing customers. 350 00:19:53,240 --> 00:19:59,680 However, we also don't want to charge our large customers extra and then subsidize our 351 00:19:59,680 --> 00:20:00,940 residential rates. 352 00:20:00,940 --> 00:20:05,840 And I feel like this proposal does a really good job of there will be a separate ECA account 353 00:20:05,840 --> 00:20:11,920 for both of those customer groups, and their rates will move independently based on the 354 00:20:11,920 --> 00:20:15,360 needs of those two categories of customer. 355 00:20:15,360 --> 00:20:23,480 So I do want to applaud that separation while being fair to both existing and new, not creating 356 00:20:23,480 --> 00:20:28,840 a lot of additional risk for existing, but trying to give the most competitive rate we 357 00:20:28,840 --> 00:20:35,340 can to new customers. 358 00:20:35,340 --> 00:20:42,160 I want to make sure that I understand, so under the native load ECA, it can go negative. 359 00:20:42,160 --> 00:20:43,160 Yes, correct. 360 00:20:43,160 --> 00:20:46,000 But on the new one, it cannot go below zero. 361 00:20:46,000 --> 00:20:47,000 No, ma'am. 362 00:20:47,000 --> 00:20:53,160 So it's always going to be adjusted so that that is not doing a cross to the native load. 363 00:20:53,160 --> 00:20:54,160 Correct. 364 00:20:54,160 --> 00:20:55,160 Thank you. 365 00:20:55,160 --> 00:20:56,800 I also agree with what Devin said. 366 00:20:56,800 --> 00:20:59,640 This is a really good way to set it up. 367 00:20:59,640 --> 00:21:01,880 Yes, I just want to make sure I would clear that. 368 00:21:01,880 --> 00:21:07,560 So it's not the ECA rate itself, it is the balance that we're talking about. 369 00:21:07,560 --> 00:21:11,640 Yes, ma'am. 370 00:21:11,640 --> 00:21:17,520 So there was some discussion about additional new large customers, and time frame, I think 371 00:21:17,520 --> 00:21:21,880 you mentioned, would be two or three years before we would have the capacity for those 372 00:21:21,880 --> 00:21:24,420 kinds of connections. 373 00:21:24,420 --> 00:21:30,160 So data center prospects continue to present themselves across the entire state. 374 00:21:30,160 --> 00:21:33,440 Only DME is not an exception to that. 375 00:21:33,440 --> 00:21:38,520 What we're facing today is that there are some transmission overloads in the area that 376 00:21:38,520 --> 00:21:44,720 we're working through what's called the regional planning group through ERCOT. 377 00:21:44,720 --> 00:21:53,440 That involves not just us, but other utilities like Encore, TMPA, even Brazos as well. 378 00:21:53,440 --> 00:21:57,000 And so we're working through that process. 379 00:21:57,000 --> 00:22:01,680 We anticipate that there'll be a number of projects that will need to come online to 380 00:22:01,680 --> 00:22:06,060 continue to give us additional capacity in the area to resolve those overloads. 381 00:22:06,060 --> 00:22:10,640 We think that that'll be a two to three year process, approval and construction before 382 00:22:10,640 --> 00:22:11,640 those are online. 383 00:22:11,640 --> 00:22:17,600 And so currently for any large load, we're giving them that type of time frame that we 384 00:22:17,600 --> 00:22:20,920 don't think we'll be able to energize in front of the two to three years. 385 00:22:20,920 --> 00:22:27,760 So these regional projects, are they being funded by DME and all or in part or are they 386 00:22:27,760 --> 00:22:29,980 coming through ERCOT? 387 00:22:29,980 --> 00:22:36,720 So ultimately ERCOT has the final say on which project and also ownership. 388 00:22:36,720 --> 00:22:41,160 Certainly there are some advantages we believe for DME to own, to construct and own some 389 00:22:41,160 --> 00:22:42,160 of those projects. 390 00:22:42,160 --> 00:22:46,680 Certainly there is a T COAS component, so there's a rate of return. 391 00:22:46,680 --> 00:22:49,840 Certainly it's not at the 28% rate of return that we used to have. 392 00:22:49,840 --> 00:22:51,000 It's at 6.21. 393 00:22:51,000 --> 00:22:55,720 I would challenge that 6.21, if you look at your own personal investments, it's a pretty 394 00:22:55,720 --> 00:22:57,260 good rate. 395 00:22:57,260 --> 00:22:59,680 And so I think there's some advantages. 396 00:22:59,680 --> 00:23:00,880 We're going through that process. 397 00:23:00,880 --> 00:23:07,320 We would anticipate that those projects that DME would own would come back through the 398 00:23:07,320 --> 00:23:10,880 PAB and to the council through the budget process because ultimately we'll be issuing, 399 00:23:10,880 --> 00:23:12,760 having to issue debt for those projects. 400 00:23:12,760 --> 00:23:13,760 Thank you. 401 00:23:13,760 --> 00:23:14,760 Any additional questions? 402 00:23:14,760 --> 00:23:27,120 Okay, at this, we do need a motion to adopt and approve this ordinance. 403 00:23:27,120 --> 00:23:28,120 Second. 404 00:23:28,120 --> 00:23:30,760 We have a motion for Mr. Block. 405 00:23:30,760 --> 00:23:31,760 Second. 406 00:23:31,760 --> 00:23:32,760 Second from Ms. Barker. 407 00:23:32,760 --> 00:23:34,760 All those in favor, please say aye. 408 00:23:34,760 --> 00:23:35,760 Aye. 409 00:23:35,760 --> 00:23:38,480 Any opposed, sign the same, passes unanimously. 410 00:23:38,480 --> 00:23:46,120 Do you have anybody you'd like to talk about before we shut down? 411 00:23:46,120 --> 00:23:47,680 Well there's actually two people. 412 00:23:47,680 --> 00:23:54,560 So I just want to make sure the board is aware that Brian Borner, previous Director of Solid 413 00:23:54,560 --> 00:23:55,680 Waste, did retire. 414 00:23:55,680 --> 00:24:00,280 And so last Friday was his last day and certainly, you know, Brian was a good friend and a good 415 00:24:00,280 --> 00:24:04,480 colleague here and I think did a fantastic job on behalf of the community. 416 00:24:04,480 --> 00:24:06,960 So they want to make sure the board was aware. 417 00:24:06,960 --> 00:24:13,480 And also want to let the board know that our own DME employee, Bill Shepard, who's sitting 418 00:24:13,480 --> 00:24:18,720 right over here, was recently appointed as the General Manager for Greenville Electric 419 00:24:18,720 --> 00:24:21,480 Utility System right here in Greenville, Texas. 420 00:24:21,480 --> 00:24:26,080 And so it's a great opportunity and professional advancement for Bill. 421 00:24:26,080 --> 00:24:32,480 We're sad to see him go, but it's always good to have another DME plant somewhere else, 422 00:24:32,480 --> 00:24:33,480 right? 423 00:24:33,480 --> 00:24:34,480 And so... 424 00:24:34,480 --> 00:24:35,480 No, he's not commuting. 425 00:24:35,480 --> 00:24:39,520 He is going to be relocated, but we're very proud of Bill and I think he's done a fantastic 426 00:24:39,520 --> 00:24:47,280 job here and came to us from Florida back in 2021, was with us at Dear Winter Storm 427 00:24:47,280 --> 00:24:50,400 Uri and the various other fun events that we've had. 428 00:24:50,400 --> 00:24:56,040 And so he's done a fantastic job and just very proud of him for his professional accomplishment. 429 00:24:56,040 --> 00:25:02,920 I highly recommend you stop giving out good references to employees. 430 00:25:02,920 --> 00:25:10,400 It's a bad habit that I keep telling them. 431 00:25:10,400 --> 00:25:11,400 Thanks Bill. 432 00:25:11,400 --> 00:25:16,520 Thank you so much. 433 00:25:16,520 --> 00:25:17,840 Then we stand adjourned.