WEBVTT 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 00:00:07.240 --> 00:00:12.120 board of the city of Denton meeting of Monday, June 9th, 2025 to order. 00:00:12.120 --> 00:00:13.120 It is 9 a.m. 00:00:13.120 --> 00:00:16.960 We have six members of the board, so there is a quorum. 00:00:16.960 --> 00:00:19.240 Are there any presentations from members of the public? 00:00:19.240 --> 00:00:21.200 No, there are not. 00:00:21.200 --> 00:00:22.200 No surprise. 00:00:22.200 --> 00:00:23.200 All right. 00:00:23.200 --> 00:00:26.480 We've got a consent agenda. 00:00:26.480 --> 00:00:30.280 Would any members like to pull any items? 00:00:30.280 --> 00:00:31.280 Mr. Ryback. 00:00:31.280 --> 00:00:32.280 Item G. 00:00:32.280 --> 00:00:33.680 Pulling item G. 00:00:33.680 --> 00:00:40.960 I'd like to pull item C as in cat. 00:00:40.960 --> 00:00:46.560 We will entertain a motion to approve items A, B, D, E and F. 00:00:46.560 --> 00:00:47.560 So moved. 00:00:47.560 --> 00:00:49.120 We have a motion from Ms. Parker. 00:00:49.120 --> 00:00:50.120 Second. 00:00:50.120 --> 00:00:51.120 Second from Mr. Plot. 00:00:51.120 --> 00:00:52.120 All those in favor, please say aye. 00:00:52.120 --> 00:00:53.120 Aye. 00:00:53.120 --> 00:00:54.120 Any opposed, sign the same. 00:00:54.120 --> 00:00:56.800 It passes unanimously. 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? 00:01:08.240 --> 00:01:11.080 So Mr. Chair, Tony pointed to the general manager. 00:01:11.080 --> 00:01:17.400 So this is a joint project with the water, wastewater, solid waste and the electric utility. 00:01:17.400 --> 00:01:22.880 We did do an RFP for this charter mandated study. 00:01:22.880 --> 00:01:26.040 The charter requires that we do a management study every 10 years. 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 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 00:01:41.640 --> 00:01:42.640 scope. 00:01:42.640 --> 00:01:48.600 And so the proposal here is to reject these proposals, rework the scope and then reissue 00:01:48.600 --> 00:01:51.600 the RFP and then come back. 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 00:01:57.920 --> 00:02:00.920 in there as well. 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 00:02:05.320 --> 00:02:08.280 the utilities and making sure that we have manpower to do that. 00:02:08.280 --> 00:02:10.280 So there's a little bit of a delay needed though. 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 00:02:15.800 --> 00:02:16.800 entity. 00:02:16.800 --> 00:02:17.800 Maybe so. 00:02:17.800 --> 00:02:18.800 All right. 00:02:18.800 --> 00:02:24.640 Was there anything else about the scope that was difficult for the respondents to comply 00:02:24.640 --> 00:02:25.640 with? 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 00:02:31.320 --> 00:02:32.320 with you. 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 00:02:38.080 --> 00:02:42.480 evaluate the electric utility was kind of the primary area. 00:02:42.480 --> 00:02:45.600 Thank you. 00:02:45.600 --> 00:02:51.520 Any additional questions, if not an entertaining motion to approve, well we do them both, right? 00:02:51.520 --> 00:02:52.520 Yeah. 00:02:52.520 --> 00:02:53.520 Okay. 00:02:53.520 --> 00:02:56.840 All right, let's go on to item G. Mr. Rybeck, you pulled that one. 00:02:56.840 --> 00:03:00.440 Okay, all right, what's, all right. 00:03:00.440 --> 00:03:03.600 Item C, an entertaining motion to approve item C. 00:03:03.600 --> 00:03:04.600 So moved. 00:03:04.600 --> 00:03:07.680 We have a motion for Mr. Rybeck. 00:03:07.680 --> 00:03:08.680 Second. 00:03:08.680 --> 00:03:09.680 Second. 00:03:09.680 --> 00:03:11.680 Second from Ms. Parker. 00:03:11.680 --> 00:03:13.600 All those in favor, please say aye. 00:03:13.600 --> 00:03:14.600 Aye. 00:03:14.600 --> 00:03:15.600 Opposed? 00:03:15.600 --> 00:03:16.600 Sign the same. 00:03:16.600 --> 00:03:17.600 Passes 6-0. 00:03:17.600 --> 00:03:21.800 All right, item G. Good morning. 00:03:21.800 --> 00:03:22.800 Good morning. 00:03:22.800 --> 00:03:25.120 Dante Hale, Capital Projects Project Manager. 00:03:25.120 --> 00:03:26.120 Thank you. 00:03:26.120 --> 00:03:29.920 I read the agenda information sheet and I was a little bit confused about dates. 00:03:29.920 --> 00:03:31.160 Yes, sir. 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 00:03:35.360 --> 00:03:40.320 thing referred to the project wouldn't be completed until second quarter of next year, 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 00:03:45.040 --> 00:03:46.040 needs to move forward? 00:03:46.040 --> 00:03:47.040 Yes, sir. 00:03:47.040 --> 00:03:49.040 Sorry about the confusion. 00:03:49.040 --> 00:03:51.360 That was my fault. 00:03:51.360 --> 00:03:56.520 So to clarify, we are seeking to split this project into two phases, this first phase 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 00:04:03.000 --> 00:04:06.840 some of the congestion that is being experienced at the new school. 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 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 00:04:19.200 --> 00:04:20.520 the project would be quarter two. 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 00:04:27.000 --> 00:04:30.000 left for them to execute that before the start of school? 00:04:30.000 --> 00:04:31.400 It will be tight. 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 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 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 00:04:44.520 --> 00:04:45.520 portion of Westgate. 00:04:45.520 --> 00:04:47.840 Well, that should prove to be challenging. 00:04:47.840 --> 00:04:48.840 Yes, sir. 00:04:48.840 --> 00:04:53.880 I would recommend that you clarify that in your agenda information before it goes forward 00:04:53.880 --> 00:04:54.880 to Council. 00:04:54.880 --> 00:04:55.880 Yes, sir. 00:04:55.880 --> 00:04:56.880 Thank you for that recommendation. 00:04:56.880 --> 00:05:01.480 Otherwise, it seemed fine by just looking at this date, which is which, so thank you. 00:05:01.480 --> 00:05:02.480 Completely understand. 00:05:02.480 --> 00:05:03.480 Apologies. 00:05:03.480 --> 00:05:04.480 Okay. 00:05:04.480 --> 00:05:07.760 Any other questions? 00:05:07.760 --> 00:05:08.760 I have one. 00:05:08.760 --> 00:05:13.960 Is that a typo on one of the contractor's bids for $900,000? 00:05:13.960 --> 00:05:23.240 Did you leave a three off of there, maybe? 00:05:23.240 --> 00:05:24.560 Sorry. 00:05:24.560 --> 00:05:28.280 Urbans, urban infrastructure. 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, 00:05:36.040 --> 00:05:42.600 and their bid tabulation shows to be $988,000. 00:05:42.600 --> 00:05:44.600 I believe that may have been a typo. 00:05:44.600 --> 00:05:45.600 Just a typo. 00:05:45.600 --> 00:05:46.600 Okay. 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. 00:05:55.480 --> 00:05:56.480 Okay. 00:05:56.480 --> 00:05:58.920 No additional questions? 00:05:58.920 --> 00:06:01.480 I entertain a motion to approve. 00:06:01.480 --> 00:06:02.480 So moved. 00:06:02.480 --> 00:06:03.480 We have a motion. 00:06:03.480 --> 00:06:06.600 Do we have a second? 00:06:06.600 --> 00:06:12.480 Aaron, he has the second. 00:06:12.480 --> 00:06:13.480 All those in favor, please say aye. 00:06:13.480 --> 00:06:14.480 Aye. 00:06:14.480 --> 00:06:15.480 Any opposed, sign the same. 00:06:15.480 --> 00:06:16.480 All right. 00:06:16.480 --> 00:06:17.480 Thank you. 00:06:17.480 --> 00:06:20.480 Oh, I thought you were doing well. 00:06:20.480 --> 00:06:26.840 Should we note that I arrived during that last item? 00:06:26.840 --> 00:06:29.120 Oh, okay. 00:06:29.120 --> 00:06:30.120 You didn't vote? 00:06:30.120 --> 00:06:32.120 Or you did vote? 00:06:32.120 --> 00:06:33.120 Okay. 00:06:33.120 --> 00:06:34.120 You're fine. 00:06:34.120 --> 00:06:35.120 Yeah. 00:06:35.120 --> 00:06:36.120 You heard most of what you needed to hear. 00:06:36.120 --> 00:06:37.120 Yeah. 00:06:37.120 --> 00:06:40.940 You would have protested otherwise. 00:06:40.940 --> 00:06:43.680 Mr. Harris has entered the building. 00:06:43.680 --> 00:06:52.180 All right, we're moving on to number three items for individual consideration. 00:06:52.180 --> 00:06:58.080 First one is the consideration of the approval of the minutes of May 19th. 00:06:58.080 --> 00:06:59.080 Entertain a motion to approve. 00:06:59.080 --> 00:07:00.080 So moved. 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. 00:07:07.840 --> 00:07:09.160 All those in favor, please say aye. 00:07:09.160 --> 00:07:10.160 Aye. 00:07:10.160 --> 00:07:11.160 Passes unanimously. 00:07:11.160 --> 00:07:17.920 We're moving on to 3B, consider recommending adoption of the ordinance to execute a contract 00:07:17.920 --> 00:07:19.840 with Holt, Texas. 00:07:19.840 --> 00:07:26.800 Good morning, Tom Green, Director of Facilities and Fleet Services. 00:07:26.800 --> 00:07:31.000 This response contract is with Holt, Texas, which is Holt Caterpillar. 00:07:31.000 --> 00:07:33.160 They are off the buy board. 00:07:33.160 --> 00:07:36.760 The City of Denton Fleet Services Department purchases, repairs, maintains, and runs various 00:07:36.760 --> 00:07:40.240 types of Caterpillar construction equipment utilized by several departments to support 00:07:40.240 --> 00:07:41.800 the city's services. 00:07:41.800 --> 00:07:44.940 The construction equipment is utilized by multiple departments to provide the services 00:07:44.940 --> 00:07:50.840 to include moving of the bulk materials, loaders, and excavators at the landfill and the streets 00:07:50.840 --> 00:07:51.840 department. 00:07:51.840 --> 00:07:54.720 The proposed contract allows for the purchase, rental, and repair of these assets utilized 00:07:54.720 --> 00:07:57.360 by the several departments as mentioned. 00:07:57.360 --> 00:08:01.880 The services provided by this contract ensure that the assets remained up and running. 00:08:01.880 --> 00:08:06.520 They have special diagnostic equipment that's required to repair them, and the technical 00:08:06.520 --> 00:08:08.680 knowledge to make sure that they're operational. 00:08:08.680 --> 00:08:12.560 All vehicles and equipment will be acquired through the city's budgeting process, and 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 00:08:15.880 --> 00:08:18.200 amount of this contract. 00:08:18.200 --> 00:08:21.760 Here are the contract estimates by department and fund of what we would traditionally see. 00:08:21.760 --> 00:08:26.200 Again, these are projections based off of a collaborative effort with the utility departments. 00:08:26.200 --> 00:08:30.280 On the right-hand side, you'll see that an acquisition example is the trash compactor. 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 00:08:36.480 --> 00:08:37.720 contract. 00:08:37.720 --> 00:08:40.600 Staff recommends approval of a one-year with four additional one-year extensions and a 00:08:40.600 --> 00:08:47.640 total of five years not to exceed the amount with Whole Texas for $14,983,500. 00:08:47.640 --> 00:08:48.640 Any questions? 00:08:48.640 --> 00:08:49.640 Mr. Rebic. 00:08:49.640 --> 00:08:55.360 Could you go back a couple of slides where you have your projection? 00:08:55.360 --> 00:08:57.360 Of course. 00:08:57.360 --> 00:09:03.640 So in your asset replacements, what are you anticipating will be in need of replacement 00:09:03.640 --> 00:09:05.240 over the next several years? 00:09:05.240 --> 00:09:06.240 Absolutely. 00:09:06.240 --> 00:09:09.540 For this fiscal year, we have two articulating dump trucks at the landfill that are scheduled 00:09:09.540 --> 00:09:11.040 for replacements. 00:09:11.040 --> 00:09:13.280 Those are over $1 million a piece. 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, 00:09:18.280 --> 00:09:21.760 the big construction equipment, six wheels, big tires. 00:09:21.760 --> 00:09:24.480 They utilize that to move the block material to landfill. 00:09:24.480 --> 00:09:27.240 There's a couple backhoe acquisitions that need to be made for replacements throughout 00:09:27.240 --> 00:09:32.240 the year, and of course the mini excavators and other various CAD equipment that's used 00:09:32.240 --> 00:09:36.320 to move the material and/or excavate for the utilities. 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 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 00:09:50.240 --> 00:09:52.080 whole term, at least a few years hence. 00:09:52.080 --> 00:09:53.080 Yes, sir. 00:09:53.080 --> 00:09:54.080 Noted. 00:09:54.080 --> 00:09:55.080 Thank you. 00:09:55.080 --> 00:09:56.080 Mr. Rayner. 00:09:56.080 --> 00:10:02.080 What's the life expectancy, like the question that was just asked, that equipment? 00:10:02.080 --> 00:10:05.160 Well, the life expectancy of each equipment varies. 00:10:05.160 --> 00:10:08.000 Equipment to landfill we try to get seven years out of. 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 00:10:12.720 --> 00:10:14.240 we change the operation. 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 00:10:19.080 --> 00:10:20.080 equipment throughout. 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, 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 00:10:27.160 --> 00:10:28.160 15 years. 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 00:10:33.280 --> 00:10:35.060 that you would like on that one. 00:10:35.060 --> 00:10:38.400 The trash compactors see the most use actually at the landfill. 00:10:38.400 --> 00:10:41.260 They're ran every day, all day, and there's two of them. 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 00:10:44.800 --> 00:10:47.640 to seven years of continued operations. 00:10:47.640 --> 00:10:50.760 And the overhaul, tell me what that is. 00:10:50.760 --> 00:10:55.040 Traditionally it would be the wearable items like a transmission or an engine and driveline 00:10:55.040 --> 00:10:56.040 items. 00:10:56.040 --> 00:10:57.040 Good. 00:10:57.040 --> 00:10:58.040 Thank you, sir. 00:10:58.040 --> 00:11:02.200 So you don't have a breakdown of the equipment that you plan to purchase? 00:11:02.200 --> 00:11:03.200 They're all projections. 00:11:03.200 --> 00:11:06.740 We do have that schedule list based off of our 15-point maintenance schedule and faster, 00:11:06.740 --> 00:11:09.200 so I can provide that in additional documentation. 00:11:09.200 --> 00:11:13.680 This year right now, the $2 million for replacement is the two articulating dump trucks. 00:11:13.680 --> 00:11:15.840 I'd have to look at my list for the future years. 00:11:15.840 --> 00:11:18.880 Okay, but you don't bring those back individually, do you? 00:11:18.880 --> 00:11:20.840 No, no, sir. 00:11:20.840 --> 00:11:21.840 Okay. 00:11:21.840 --> 00:11:30.640 So you've got two articulating trucks planned to buy through Caterpillar off the buy board? 00:11:30.640 --> 00:11:32.640 Yes, sir. 00:11:32.640 --> 00:11:33.640 Okay. 00:11:33.640 --> 00:11:37.680 So what you're calling a trash compactor, that's an 815, right? 00:11:37.680 --> 00:11:39.360 I'm not exactly sure of the model number. 00:11:39.360 --> 00:11:40.360 I don't know. 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 00:11:46.080 --> 00:11:47.080 any difference or not. 00:11:47.080 --> 00:11:54.520 Do you end up getting different pad foots on them than a regular compactor? 00:11:54.520 --> 00:11:58.480 Pad foots and those greasing specifications are different because of the corrosiveness 00:11:58.480 --> 00:12:00.920 in the trash landfill. 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 00:12:06.080 --> 00:12:12.200 and repair cycles than you would at a normal dirt facility. 00:12:12.200 --> 00:12:14.800 Subgrade compactor or whatever? 00:12:14.800 --> 00:12:15.800 Okay. 00:12:15.800 --> 00:12:16.800 All right. 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 00:12:24.040 --> 00:12:25.040 that correct? 00:12:25.040 --> 00:12:26.040 Yes, sir. 00:12:26.040 --> 00:12:27.040 All right. 00:12:27.040 --> 00:12:28.040 So none of this comes back, right? 00:12:28.040 --> 00:12:29.040 It does not. 00:12:29.040 --> 00:12:30.040 Okay. 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 00:12:33.840 --> 00:12:37.640 the city's budgeting cycle, so unless the department requests it, they have the funds, 00:12:37.640 --> 00:12:40.880 it goes through procurement, and then it goes through the budgeting process, do we make 00:12:40.880 --> 00:12:41.880 that acquisition? 00:12:41.880 --> 00:12:45.840 There's still a lot of approvals required to make an acquisition. 00:12:45.840 --> 00:12:49.840 But acquisition will come back through in the budget process. 00:12:49.840 --> 00:12:54.400 The dollar amount issued for debt or operating funds will go through the budgeting process, 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, 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, 00:13:04.120 --> 00:13:05.120 of course, adjusted. 00:13:05.120 --> 00:13:06.120 Okay. 00:13:06.120 --> 00:13:07.120 All right. 00:13:07.120 --> 00:13:11.960 So that's where our approval process is, in the budget. 00:13:11.960 --> 00:13:12.960 Right. 00:13:12.960 --> 00:13:13.960 Okay. 00:13:13.960 --> 00:13:16.040 That's all I got. 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. 00:13:20.680 --> 00:13:21.680 So moved. 00:13:21.680 --> 00:13:22.680 We have a motion to approve. 00:13:22.680 --> 00:13:28.400 We have a second from Mr. Rybak, but the motion was from Mr. Rayner. 00:13:28.400 --> 00:13:29.680 All those in favor, please say aye. 00:13:29.680 --> 00:13:30.680 Aye. 00:13:30.680 --> 00:13:31.680 Any opposed, sign the same. 00:13:31.680 --> 00:13:32.680 Thank you. 00:13:32.680 --> 00:13:33.680 Passes unanimously. 00:13:33.680 --> 00:13:34.680 Thank you. 00:13:34.680 --> 00:13:42.680 So we're on C now, management reports already. 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 00:13:49.080 --> 00:13:50.080 morning. 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 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 00:14:04.240 --> 00:14:05.240 14th. 00:14:05.240 --> 00:14:09.960 They will be conducting a budget workshop with you on the various funds, and then the 00:14:09.960 --> 00:14:16.440 target is July 28th, that the PAB will consider approval and recommendation to the council 00:14:16.440 --> 00:14:21.360 on the various budgets and rate ordinances as well. 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 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. 00:14:31.680 --> 00:14:32.680 Mr. Rybak. 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 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 00:14:42.520 --> 00:14:45.520 providing that to us. 00:14:45.520 --> 00:14:49.000 You're welcome on their behalf. 00:14:49.000 --> 00:14:50.560 All right. 00:14:50.560 --> 00:14:51.560 Any other? 00:14:51.560 --> 00:14:52.560 All right. 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, 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 00:15:08.920 --> 00:15:10.840 be giving this presentation? 00:15:10.840 --> 00:15:11.840 You are? 00:15:11.840 --> 00:15:12.840 All right. 00:15:12.840 --> 00:15:13.840 It is 9/28. 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. 00:15:20.840 --> 00:15:31.440 Reconvened from the closed session as no official, and no official action was taken. 00:15:31.440 --> 00:15:36.240 All right, we're back on. 00:15:36.240 --> 00:15:45.040 So we are, is there any further discussion regarding item D? 00:15:45.040 --> 00:15:46.040 Yes. 00:15:46.040 --> 00:15:47.040 Okay. 00:15:47.040 --> 00:16:01.900 All right, good morning, PUB and board, Vispopentavong, ADF Finance, here to discuss ECA and TCRF. 00:16:01.900 --> 00:16:07.040 So just to provide a current policy and rate quickly, energy cost adjustment, currently 00:16:07.040 --> 00:16:13.960 it's at a plus or minus $10 million, and the rate is at .0462. 00:16:13.960 --> 00:16:17.000 Current cost recovery factor, we're recommending no changes. 00:16:17.000 --> 00:16:22.220 So those are the small, medium, large. 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 00:16:27.640 --> 00:16:31.960 power, you know, that fluctuates, you know, power goes up and down, especially between 00:16:31.960 --> 00:16:34.000 summer and the winter months. 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 00:16:41.080 --> 00:16:46.560 just so we can look at the data at a longer period of time. 00:16:46.560 --> 00:16:49.720 And the next thing we want to talk about is the buffer. 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 00:16:56.920 --> 00:17:00.160 worth of average purchase power. 00:17:00.160 --> 00:17:09.560 But also maintaining the current rate at .0462 per kilowatts. 00:17:09.560 --> 00:17:14.200 This is the other recommendation is we wanted to create a new schedule, which is called 00:17:14.200 --> 00:17:15.440 large load. 00:17:15.440 --> 00:17:20.840 This large load is really looking at power that's over 20 megawatts. 00:17:20.840 --> 00:17:26.640 So the customers that pull power that's over 20 megawatts. 00:17:26.640 --> 00:17:31.280 And on this buffer, we're thinking we're looking at zero to 20 million. 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 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 00:17:41.640 --> 00:17:48.040 at .0515. 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. 00:17:56.720 --> 00:18:00.400 By May, it'll get us around 13 million dollars. 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. 00:18:09.840 --> 00:18:12.040 So here is the recommendation. 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 00:18:20.140 --> 00:18:24.640 at the buffer going from 10 million to 20 million plus or minus. 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. 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. 00:18:34.960 --> 00:18:37.280 Create the new ECA large load schedule. 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. 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. 00:18:50.680 --> 00:18:55.960 Any questions? 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. 00:19:01.720 --> 00:19:06.200 And I think this proposal seems to do that. 00:19:06.200 --> 00:19:11.680 Our long-term residents are kind of what we often refer to as our native load. 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 00:19:17.760 --> 00:19:20.820 lots of investments for energy. 00:19:20.820 --> 00:19:27.320 And so while these very large potential new customers, you know, we need to treat them 00:19:27.320 --> 00:19:34.700 fairly as well, but there is a potential for risk to our existing residential customer 00:19:34.700 --> 00:19:40.500 base in that these large loads could ramp very quickly, not allowing lots of pre-purchase 00:19:40.500 --> 00:19:44.280 time or the best rates in energy purchases. 00:19:44.280 --> 00:19:51.560 And they could ramp down quickly, which would have the potential to leave financial burden 00:19:51.560 --> 00:19:53.240 for our existing customers. 00:19:53.240 --> 00:19:59.680 However, we also don't want to charge our large customers extra and then subsidize our 00:19:59.680 --> 00:20:00.940 residential rates. 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 00:20:05.840 --> 00:20:11.920 for both of those customer groups, and their rates will move independently based on the 00:20:11.920 --> 00:20:15.360 needs of those two categories of customer. 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 00:20:23.480 --> 00:20:28.840 a lot of additional risk for existing, but trying to give the most competitive rate we 00:20:28.840 --> 00:20:35.340 can to new customers. 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. 00:20:42.160 --> 00:20:43.160 Yes, correct. 00:20:43.160 --> 00:20:46.000 But on the new one, it cannot go below zero. 00:20:46.000 --> 00:20:47.000 No, ma'am. 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. 00:20:53.160 --> 00:20:54.160 Correct. 00:20:54.160 --> 00:20:55.160 Thank you. 00:20:55.160 --> 00:20:56.800 I also agree with what Devin said. 00:20:56.800 --> 00:20:59.640 This is a really good way to set it up. 00:20:59.640 --> 00:21:01.880 Yes, I just want to make sure I would clear that. 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. 00:21:07.560 --> 00:21:11.640 Yes, ma'am. 00:21:11.640 --> 00:21:17.520 So there was some discussion about additional new large customers, and time frame, I think 00:21:17.520 --> 00:21:21.880 you mentioned, would be two or three years before we would have the capacity for those 00:21:21.880 --> 00:21:24.420 kinds of connections. 00:21:24.420 --> 00:21:30.160 So data center prospects continue to present themselves across the entire state. 00:21:30.160 --> 00:21:33.440 Only DME is not an exception to that. 00:21:33.440 --> 00:21:38.520 What we're facing today is that there are some transmission overloads in the area that 00:21:38.520 --> 00:21:44.720 we're working through what's called the regional planning group through ERCOT. 00:21:44.720 --> 00:21:53.440 That involves not just us, but other utilities like Encore, TMPA, even Brazos as well. 00:21:53.440 --> 00:21:57.000 And so we're working through that process. 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 00:22:01.680 --> 00:22:06.060 continue to give us additional capacity in the area to resolve those overloads. 00:22:06.060 --> 00:22:10.640 We think that that'll be a two to three year process, approval and construction before 00:22:10.640 --> 00:22:11.640 those are online. 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 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. 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 00:22:27.760 --> 00:22:29.980 coming through ERCOT? 00:22:29.980 --> 00:22:36.720 So ultimately ERCOT has the final say on which project and also ownership. 00:22:36.720 --> 00:22:41.160 Certainly there are some advantages we believe for DME to own, to construct and own some 00:22:41.160 --> 00:22:42.160 of those projects. 00:22:42.160 --> 00:22:46.680 Certainly there is a T COAS component, so there's a rate of return. 00:22:46.680 --> 00:22:49.840 Certainly it's not at the 28% rate of return that we used to have. 00:22:49.840 --> 00:22:51.000 It's at 6.21. 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 00:22:55.720 --> 00:22:57.260 good rate. 00:22:57.260 --> 00:22:59.680 And so I think there's some advantages. 00:22:59.680 --> 00:23:00.880 We're going through that process. 00:23:00.880 --> 00:23:07.320 We would anticipate that those projects that DME would own would come back through the 00:23:07.320 --> 00:23:10.880 PAB and to the council through the budget process because ultimately we'll be issuing, 00:23:10.880 --> 00:23:12.760 having to issue debt for those projects. 00:23:12.760 --> 00:23:13.760 Thank you. 00:23:13.760 --> 00:23:14.760 Any additional questions? 00:23:14.760 --> 00:23:27.120 Okay, at this, we do need a motion to adopt and approve this ordinance. 00:23:27.120 --> 00:23:28.120 Second. 00:23:28.120 --> 00:23:30.760 We have a motion for Mr. Block. 00:23:30.760 --> 00:23:31.760 Second. 00:23:31.760 --> 00:23:32.760 Second from Ms. Barker. 00:23:32.760 --> 00:23:34.760 All those in favor, please say aye. 00:23:34.760 --> 00:23:35.760 Aye. 00:23:35.760 --> 00:23:38.480 Any opposed, sign the same, passes unanimously. 00:23:38.480 --> 00:23:46.120 Do you have anybody you'd like to talk about before we shut down? 00:23:46.120 --> 00:23:47.680 Well there's actually two people. 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 00:23:54.560 --> 00:23:55.680 Waste, did retire. 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 00:24:00.280 --> 00:24:04.480 colleague here and I think did a fantastic job on behalf of the community. 00:24:04.480 --> 00:24:06.960 So they want to make sure the board was aware. 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 00:24:13.480 --> 00:24:18.720 right over here, was recently appointed as the General Manager for Greenville Electric 00:24:18.720 --> 00:24:21.480 Utility System right here in Greenville, Texas. 00:24:21.480 --> 00:24:26.080 And so it's a great opportunity and professional advancement for Bill. 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, 00:24:32.480 --> 00:24:33.480 right? 00:24:33.480 --> 00:24:34.480 And so... 00:24:34.480 --> 00:24:35.480 No, he's not commuting. 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 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 00:24:47.280 --> 00:24:50.400 Uri and the various other fun events that we've had. 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. 00:24:56.040 --> 00:25:02.920 I highly recommend you stop giving out good references to employees. 00:25:02.920 --> 00:25:10.400 It's a bad habit that I keep telling them. 00:25:10.400 --> 00:25:11.400 Thanks Bill. 00:25:11.400 --> 00:25:16.520 Thank you so much. 00:25:16.520 --> 00:25:17.840 Then we stand adjourned.