WEBVTT

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 Good morning and welcome to the regularly scheduled meeting for the

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 City of Denton Public Utilities Board. Today is June 23rd and it is 9 a.m. and

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 the meeting is called to order. Our first item of business is presentations from

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 members of the public. Are there any presentations? Okay moving on to the

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 consent agenda. Mr. Chairman I'd like to pull item B. Okay we have a question on

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 item B. Are there any other items commissioners have questions on? Bees and

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 boy, yes. I'd entertain a motion for the remaining items. We have a motion and a

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 second. All in favor say aye. Passes unanimously and now item B. Consider

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 recommending adoption of an ordinance at the City of Denton authorizing approval

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 of the first amendment of the contract between City of Denton and DKJ concrete

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 construction for not to exceed amount of five million two hundred fifty thousand

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 dollars. Good morning. Casey Bowles water and wastewater filled operations division

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 manager. Good morning. I have what may be a particularly dumb question but utility

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 cut restoration service. Yeah so this is a contracted service they restore the

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 asphalt the concrete and sod or landscaping when we dig up a water line

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 or a wastewater line for repair. Okay so this is restoration of a cut that was

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 planned and made by the utility department. Corrects planned or unplanned.

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 Oh well what's an unplanned cut? An emergency a main break after hours a

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 sewer line collapse something like this. Okay so kind of standard run-of-the-mill

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 stuff then. Yes sir. Okay well thank you very much that's my only question.

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 Move to approve item B. We have a motion. Do we have a second? Thank you Susan. All

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 in favor say aye. Passes unanimously. Now we'll move on to items for individual

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 consideration. Our first item for individual consideration is approval of

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 the June 9th minutes. Do we have a motion to approve? Lee has a motion is

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 there a second? I'm sorry Robert moves Lee seconds. Sorry about that. All in

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 favor? Passes unanimously. Item B for individual consideration. Consider

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 recommending adoption of an ordinance considering all manners incident and

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 related to the issuance sale and delivery of up to $142,565,000

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 in principal amount of Denton City of Denton general obligation refunding and

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 improvement bonds series 2025. I believe we're also going to have a presentation

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 on the next item so we'll also consider recommending adoption of an ordinance

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 considering all matters incident related to the issuance sale and delivery of up

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 to $254,050,000 in principal amount for City of Denton

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 certificates of obligations series 2025. Thank you. Good morning Randy Klingel

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 Treasury Manager. Before you today I have a presentation for our bond ordinances

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 which are the last item that sets us up to go to the bond sale later this summer.

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 So the last time I was here before you you recommended and then I went to

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 council on May 20th for the notice of intents notice of intents are required

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 for certificates of obligation and so with your recommendation council

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 approved those on May 20th we published those in the Denton record Chronicle on

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 May 21st and May 31st sorry May 24th and May 31st and we also put that on our

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 city website you know it'll be there until the bond ordinance in July. The

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 July date for council also meets the last requirements 46 days after the

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 first publication on May 24th. So mostly what I have for my presentation today is

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 showing you the notice of intent dollars to the bond ordinance dollars today and

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 the bond ordinance dollars are the ones that will be represented represented in

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 the bond sale. So for the solid waste fund they had no change from notice of

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 intent to bond sale with 11.1 million dollars. The water department they have

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 three slides just as they did last time and you'll see the changes if there are

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 any between notice of intent to the bond ordinance total. So they remained at

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 their 80 million point six eighty point six million dollars. Wastewater has two

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 slides showing their project list for the capital projects and they also

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 remain the same from notice of intent to bond sale at seventy seven point one

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 million dollars. Last we have the electric fund which reduced a little bit

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 from forty seven dot nine to forty four million flat for the bond ordinance. You

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 see the changes there for their land and building construction. They reduced that

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 and removed it completely out of their project list. So for solid waste you have

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 the eleven million one hundred and twenty five thousand seven hundred eleven then

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 for the total utilities you have the two hundred one point seven million with

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 solid waste and the utility totals coming at the two hundred and twelve

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 point eight million dollars. In addition every year we look at the possibility of

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 refunding to find the savings in the very last issuance that we can call and

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 so this year we have a potential to refund some of the 2015's which include

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 the utility funds that you see here and we're looking at a potential saving of

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 one point three million dollars. So the total CO bond sale for general government

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 solid waste and all three of your utilities with issuance cost which

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 includes sharing that with the GEO sale so this seven point five million is

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 shared with the other bond sale as well so the GEO and the CEO go together we

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 are built together for those for this total will be two hundred fifty four

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 million fifty thousand dollars. So next with your recommendation I'll go to

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 council on July 15th to pass the bond ordinance and then on July 23rd we will

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 go to sale and we expect the proceeds on August 26th. I'll have any questions.

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 Are there any questions? Just one quick one on the refunding what was the

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 interest rate difference I know that there's one point three the refunded

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 bonds are four point four the projected interest will be three point five five.

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 Okay thank you. Also the question on that three five five rate is that how is that

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 compared to our recent history of bond rates last few years? They were higher

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 than that last couple of years. Okay so. I don't have an exact rate but I can

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 review that if you'd like and get that back to you. But they're trending

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 trending a little better than they were? A little bit not much. Okay. Just kind of

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 waiting to see you day by day. Thank you.

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 Any further questions? Chair would entertain a motion for item B. I'll move

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 approval on item B. Susan Parker motions. Lee seconds. We have a motion and a

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 second. All in favor of recommending adoption of an ordinance for the issue

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 and sale and delivery of up to 142 million five hundred sixty five thousand

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 dollars in general obligation refunding and improvement bonds? Please say aye.

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 Motion carries unanimously and on to item C. Do we have a motion? Mr. Newquist

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 moves. Do we have a second? Mr. Rayner seconds. Okay all in favor of

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 recommending adoption of an ordinance? Started this pattern of reading the whole

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 thing so I guess I'm gonna stick to it. Related to the issue and sale and

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 delivery of up to 254 million fifty thousand dollars in certificates of

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 obligation. Please say aye. Aye. The motion passes unanimously. On to

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 management reports. Mr. Chair, members of the board, just a few items here. The

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 first one is we provided you a memo from the water department of regarding

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 Stephen Gay's reappointment to the upper Trinity regional water district. Stephen's

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 been on there since 2021 so it's good continuity for the city to have a

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 representative on that. I don't know if there's anybody here if you have

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 questions but and then going on to future agenda items as you know today we

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 had planned a kind of financial update that has been postponed that'll be part

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 of the July 14th budget workshop process and of course then July 28th still the

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 date that we would anticipate that the board would consider recommending

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 approval to the council making recommendations to the council on the

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 various budgets and then regarding new business new business action matrix we

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 don't have anything on there so certainly happy to take any new ones on

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 if you have any but with that happy to answer any questions. Thank you. I read the

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 paper last week ten days ago that a proposal was presented to the City

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 Council concerning an additional gas power plant natural gas I was just

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 curious I knew we had talked about it earlier this year but I didn't know we

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 had moved to this point in the game and I was just curious as to what what are

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 your thoughts yeah I'm gonna make sure the city attorney is okay with me

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 providing a response here so well if this is not appropriate I'd like it for

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 the next meeting but definitely if you want to just provide an initial kind of

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 statement of fact that would be okay but any sort of additional discussion would

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 need to be postponed to next meeting yes so so we presented to the council on

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 June 3rd the same presentation that we did here and then on June 17th we

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 discussed with the council the possibility of exploring or researching

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 whether or not acquiring an existing generation facility out in the Urquhart

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 market might be beneficial for the city or looking at any potential acquiring a

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 proposed facility you know there's been a number of facilities that have been

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 proposed to the Texas Energy Fund they're going through various kind of

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 phases of that there's been some that have dropped off and so so we believe

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 that there might be some value to acquiring a facility such as that you

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 know mentioned to them there's only two nuclear facilities and that that would

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 be unlikely there's a number of colon lignite facilities but I think from our

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 perspective well we think that purchasing something like that and then

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 remediating the the environmental issues could be quite costly but there could be

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 a good kind of alternative and you're taking a kind of a dirty facility and

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 converting it to something else CPS energy did that but again I think the

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 the economics of that might be might be more than we probably bear and there's

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 over a hundred existing natural gas facilities in the in the market we talked

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 a little bit about that I provided them a list of of those again at this point

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 we don't have any any specific lead on any facility but certainly based on

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 other sales that have happened in the market we think that might be a

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 possibility for that the goal of that would be simply to to get something on

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 the ground faster to meet our ongoing deficit between our peak load and the

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 dispatchable generation that we have today the count the direction that the

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 council gave us was basically to kind of move forward with with researching that

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 and so we're still having some internal conversations about how we would go

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 about doing that but certainly the presentation was was an hour-long

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 presentation I'm happy to bring that back here to you and kind of go through

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 that if that's what the board would like I'm not sure what questions I can ask

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 counsel for what to be on the next I'd like to I'd like to I saw it on TV so

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 it was it was great but and I'll yield to you Mr. Chairman as to what what what

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 steps or what items do we should we be looking at I mean are we looking at

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 purchase if I can speak along this line are we looking at purchasing a plant

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 I'd like to know about that we're looking at construction I'd like to know

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 about that how far can I ask these questions before I'm in trouble so all

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 those questions would need to be brought back either in a memo or a future work

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 session and I have no problem with that I'm just asking the question but you

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 can give direction as to what you want Tony to bring back okay well I'd like to

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 know I'm really intrigued about possibly are we looking at buying existing which

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 I would think time wise would be wonderful if we've got the kind of money

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 were you were looking at such at how much at what and I'd like to know where

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 what step of where you're at that we would need to be involved with I mean are

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 you is there still quite a bit of more research needs to be done before it's

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 going to be brought to us I just kind of and if so what is that time frame so we

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 can be ready for it and for the next meeting madam counselor if that's all

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 right

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 Susan did you just pretty much the same thing I don't know what I don't know how

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 to ask for can I ask about the scale size of purchase it sounds like we have

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 a lot of questions on this topic so I think we need to just bring it back at

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 the next work session sounds good I'm happy to bring back a work session item

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 and try to go through as many questions you have that yeah and I did I missed the

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 presentation so yeah I'd love to see the presentation I'm also curious about

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 process because four weeks ago we were talking about a six month planning

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 process and then to your shopping process and so it feels like we we jumped

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 ahead six months and you know how does how does this fit into our the plan that

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 was laid out in May yeah if there's a fire sale I think it's prudent we jump

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 on it but I don't think that's the case a power a power fire sales who knows

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 whatever I appreciate it that's what that's all any other questions or items

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 for future agenda or new business we are adjourned