Good morning and welcome to the regularly scheduled meeting for the
City of Denton Public Utilities Board. Today is June 23rd and it is 9 a.m. and
the meeting is called to order. Our first item of business is presentations from
members of the public. Are there any presentations? Okay moving on to the
consent agenda. Mr. Chairman I'd like to pull item B. Okay we have a question on
item B. Are there any other items commissioners have questions on? Bees and
boy, yes. I'd entertain a motion for the remaining items. We have a motion and a
second. All in favor say aye. Passes unanimously and now item B. Consider
recommending adoption of an ordinance at the City of Denton authorizing approval
of the first amendment of the contract between City of Denton and DKJ concrete
construction for not to exceed amount of five million two hundred fifty thousand
dollars. Good morning. Casey Bowles water and wastewater filled operations division
manager. Good morning. I have what may be a particularly dumb question but utility
cut restoration service. Yeah so this is a contracted service they restore the
asphalt the concrete and sod or landscaping when we dig up a water line
or a wastewater line for repair. Okay so this is restoration of a cut that was
planned and made by the utility department. Corrects planned or unplanned.
Oh well what's an unplanned cut? An emergency a main break after hours a
sewer line collapse something like this. Okay so kind of standard run-of-the-mill
stuff then. Yes sir. Okay well thank you very much that's my only question.
Move to approve item B. We have a motion. Do we have a second? Thank you Susan. All
in favor say aye. Passes unanimously. Now we'll move on to items for individual
consideration. Our first item for individual consideration is approval of
the June 9th minutes. Do we have a motion to approve? Lee has a motion is
there a second? I'm sorry Robert moves Lee seconds. Sorry about that. All in
favor? Passes unanimously. Item B for individual consideration. Consider
recommending adoption of an ordinance considering all manners incident and
related to the issuance sale and delivery of up to $142,565,000
in principal amount of Denton City of Denton general obligation refunding and
improvement bonds series 2025. I believe we're also going to have a presentation
on the next item so we'll also consider recommending adoption of an ordinance
considering all matters incident related to the issuance sale and delivery of up
to $254,050,000 in principal amount for City of Denton
certificates of obligations series 2025. Thank you. Good morning Randy Klingel
Treasury Manager. Before you today I have a presentation for our bond ordinances
which are the last item that sets us up to go to the bond sale later this summer.
So the last time I was here before you you recommended and then I went to
council on May 20th for the notice of intents notice of intents are required
for certificates of obligation and so with your recommendation council
approved those on May 20th we published those in the Denton record Chronicle on
May 21st and May 31st sorry May 24th and May 31st and we also put that on our
city website you know it'll be there until the bond ordinance in July. The
July date for council also meets the last requirements 46 days after the
first publication on May 24th. So mostly what I have for my presentation today is
showing you the notice of intent dollars to the bond ordinance dollars today and
the bond ordinance dollars are the ones that will be represented represented in
the bond sale. So for the solid waste fund they had no change from notice of
intent to bond sale with 11.1 million dollars. The water department they have
three slides just as they did last time and you'll see the changes if there are
any between notice of intent to the bond ordinance total. So they remained at
their 80 million point six eighty point six million dollars. Wastewater has two
slides showing their project list for the capital projects and they also
remain the same from notice of intent to bond sale at seventy seven point one
million dollars. Last we have the electric fund which reduced a little bit
from forty seven dot nine to forty four million flat for the bond ordinance. You
see the changes there for their land and building construction. They reduced that
and removed it completely out of their project list. So for solid waste you have
the eleven million one hundred and twenty five thousand seven hundred eleven then
for the total utilities you have the two hundred one point seven million with
solid waste and the utility totals coming at the two hundred and twelve
point eight million dollars. In addition every year we look at the possibility of
refunding to find the savings in the very last issuance that we can call and
so this year we have a potential to refund some of the 2015's which include
the utility funds that you see here and we're looking at a potential saving of
one point three million dollars. So the total CO bond sale for general government
solid waste and all three of your utilities with issuance cost which
includes sharing that with the GEO sale so this seven point five million is
shared with the other bond sale as well so the GEO and the CEO go together we
are built together for those for this total will be two hundred fifty four
million fifty thousand dollars. So next with your recommendation I'll go to
council on July 15th to pass the bond ordinance and then on July 23rd we will
go to sale and we expect the proceeds on August 26th. I'll have any questions.
Are there any questions? Just one quick one on the refunding what was the
interest rate difference I know that there's one point three the refunded
bonds are four point four the projected interest will be three point five five.
Okay thank you. Also the question on that three five five rate is that how is that
compared to our recent history of bond rates last few years? They were higher
than that last couple of years. Okay so. I don't have an exact rate but I can
review that if you'd like and get that back to you. But they're trending
trending a little better than they were? A little bit not much. Okay. Just kind of
waiting to see you day by day. Thank you.
Any further questions? Chair would entertain a motion for item B. I'll move
approval on item B. Susan Parker motions. Lee seconds. We have a motion and a
second. All in favor of recommending adoption of an ordinance for the issue
and sale and delivery of up to 142 million five hundred sixty five thousand
dollars in general obligation refunding and improvement bonds? Please say aye.
Motion carries unanimously and on to item C. Do we have a motion? Mr. Newquist
moves. Do we have a second? Mr. Rayner seconds. Okay all in favor of
recommending adoption of an ordinance? Started this pattern of reading the whole
thing so I guess I'm gonna stick to it. Related to the issue and sale and
delivery of up to 254 million fifty thousand dollars in certificates of
obligation. Please say aye. Aye. The motion passes unanimously. On to
management reports. Mr. Chair, members of the board, just a few items here. The
first one is we provided you a memo from the water department of regarding
Stephen Gay's reappointment to the upper Trinity regional water district. Stephen's
been on there since 2021 so it's good continuity for the city to have a
representative on that. I don't know if there's anybody here if you have
questions but and then going on to future agenda items as you know today we
had planned a kind of financial update that has been postponed that'll be part
of the July 14th budget workshop process and of course then July 28th still the
date that we would anticipate that the board would consider recommending
approval to the council making recommendations to the council on the
various budgets and then regarding new business new business action matrix we
don't have anything on there so certainly happy to take any new ones on
if you have any but with that happy to answer any questions. Thank you. I read the
paper last week ten days ago that a proposal was presented to the City
Council concerning an additional gas power plant natural gas I was just
curious I knew we had talked about it earlier this year but I didn't know we
had moved to this point in the game and I was just curious as to what what are
your thoughts yeah I'm gonna make sure the city attorney is okay with me
providing a response here so well if this is not appropriate I'd like it for
the next meeting but definitely if you want to just provide an initial kind of
statement of fact that would be okay but any sort of additional discussion would
need to be postponed to next meeting yes so so we presented to the council on
June 3rd the same presentation that we did here and then on June 17th we
discussed with the council the possibility of exploring or researching
whether or not acquiring an existing generation facility out in the Urquhart
market might be beneficial for the city or looking at any potential acquiring a
proposed facility you know there's been a number of facilities that have been
proposed to the Texas Energy Fund they're going through various kind of
phases of that there's been some that have dropped off and so so we believe
that there might be some value to acquiring a facility such as that you
know mentioned to them there's only two nuclear facilities and that that would
be unlikely there's a number of colon lignite facilities but I think from our
perspective well we think that purchasing something like that and then
remediating the the environmental issues could be quite costly but there could be
a good kind of alternative and you're taking a kind of a dirty facility and
converting it to something else CPS energy did that but again I think the
the economics of that might be might be more than we probably bear and there's
over a hundred existing natural gas facilities in the in the market we talked
a little bit about that I provided them a list of of those again at this point
we don't have any any specific lead on any facility but certainly based on
other sales that have happened in the market we think that might be a
possibility for that the goal of that would be simply to to get something on
the ground faster to meet our ongoing deficit between our peak load and the
dispatchable generation that we have today the count the direction that the
council gave us was basically to kind of move forward with with researching that
and so we're still having some internal conversations about how we would go
about doing that but certainly the presentation was was an hour-long
presentation I'm happy to bring that back here to you and kind of go through
that if that's what the board would like I'm not sure what questions I can ask
counsel for what to be on the next I'd like to I'd like to I saw it on TV so
it was it was great but and I'll yield to you Mr. Chairman as to what what what
steps or what items do we should we be looking at I mean are we looking at
purchase if I can speak along this line are we looking at purchasing a plant
I'd like to know about that we're looking at construction I'd like to know
about that how far can I ask these questions before I'm in trouble so all
those questions would need to be brought back either in a memo or a future work
session and I have no problem with that I'm just asking the question but you
can give direction as to what you want Tony to bring back okay well I'd like to
know I'm really intrigued about possibly are we looking at buying existing which
I would think time wise would be wonderful if we've got the kind of money
were you were looking at such at how much at what and I'd like to know where
what step of where you're at that we would need to be involved with I mean are
you is there still quite a bit of more research needs to be done before it's
going to be brought to us I just kind of and if so what is that time frame so we
can be ready for it and for the next meeting madam counselor if that's all
right
Susan did you just pretty much the same thing I don't know what I don't know how
to ask for can I ask about the scale size of purchase it sounds like we have
a lot of questions on this topic so I think we need to just bring it back at
the next work session sounds good I'm happy to bring back a work session item
and try to go through as many questions you have that yeah and I did I missed the
presentation so yeah I'd love to see the presentation I'm also curious about
process because four weeks ago we were talking about a six month planning
process and then to your shopping process and so it feels like we we jumped
ahead six months and you know how does how does this fit into our the plan that
was laid out in May yeah if there's a fire sale I think it's prudent we jump
on it but I don't think that's the case a power a power fire sales who knows
whatever I appreciate it that's what that's all any other questions or items
for future agenda or new business we are adjourned