WEBVTT 00:00:00.000 --> 00:00:07.900 It is nine o'clock, Monday, March 23rd, and this regular meeting of the Public Utilities 00:00:07.900 --> 00:00:11.000 Board of the City of Denton is now in session. 00:00:11.000 --> 00:00:14.580 Do we have any presentations from members of the public? 00:00:14.580 --> 00:00:15.580 There are none. 00:00:15.580 --> 00:00:16.580 Moving on to the consent agenda. 00:00:16.580 --> 00:00:19.000 Would anybody like to pull anything from the consent agenda? 00:00:19.000 --> 00:00:20.000 No? 00:00:20.000 --> 00:00:24.660 Then I'll entertain a motion to approve the consent agenda. 00:00:24.660 --> 00:00:26.780 Is that a motion? 00:00:26.780 --> 00:00:27.780 Second. 00:00:27.780 --> 00:00:28.780 And a second. 00:00:28.780 --> 00:00:29.780 All in favor say aye. 00:00:29.780 --> 00:00:30.780 Aye. 00:00:30.780 --> 00:00:31.780 Against? 00:00:31.780 --> 00:00:32.780 I'm the same. 00:00:32.780 --> 00:00:33.780 Passes unanimously. 00:00:33.780 --> 00:00:39.400 Items for individual consideration, consider approval of the March 9th minutes. 00:00:39.400 --> 00:00:40.400 So moved. 00:00:40.400 --> 00:00:41.400 So moved. 00:00:41.400 --> 00:00:42.400 Or second? 00:00:42.400 --> 00:00:43.400 Not a motion. 00:00:43.400 --> 00:00:44.400 We got a second. 00:00:44.400 --> 00:00:45.400 All in favor? 00:00:45.400 --> 00:00:46.400 Aye. 00:00:46.400 --> 00:00:48.600 All right. 00:00:48.600 --> 00:00:53.480 Item B, consider recommending an adoption of an ordinance in the City of Denton to execute 00:00:53.480 --> 00:00:59.640 a contract with Acceleron US for turbo replacement parts and service for the Denton Energy Center. 00:00:59.640 --> 00:01:08.440 In the amount of $9,520,000 for one year. 00:01:08.440 --> 00:01:13.880 Option of four additional years, one extension, a total of five years. 00:01:13.880 --> 00:01:14.880 Good morning. 00:01:14.880 --> 00:01:15.880 Excuse me. 00:01:15.880 --> 00:01:19.900 Good morning, Chair, members of the PUP. 00:01:19.900 --> 00:01:25.800 My name is Jose Gaitan, Executive Manager of Power Supply for DME. 00:01:25.800 --> 00:01:33.800 I'm here to present the intricacies of this RFP that is for the turbo replacement parts 00:01:33.800 --> 00:01:38.480 and services for the turbos at the Denton Energy Center. 00:01:38.480 --> 00:01:44.560 So the background for this RFP is that the deck has 12 engines with two turbos each for 00:01:44.560 --> 00:01:47.920 a total of 24 turbos. 00:01:47.920 --> 00:01:53.480 So peak shaving operations at the Denton Energy Center causes stresses on these turbos. 00:01:53.480 --> 00:01:59.020 Every cooling and heating cycle stresses the metals by expanding and contracting. 00:01:59.020 --> 00:02:07.640 That expansion causes stresses on the metal, which can, over time, cause fractures. 00:02:07.640 --> 00:02:16.440 So it is important that we have proper maintenance for these facilities, and as such, the OEM 00:02:16.440 --> 00:02:27.040 is giving us a change in the maintenance schedule, which would basically have us look at the turbos 00:02:27.040 --> 00:02:31.840 a little bit earlier, based on the number of start and stops, as they are seeing some 00:02:31.840 --> 00:02:37.720 more fatigues out in the field on these turbos. 00:02:37.720 --> 00:02:42.160 So inspections are critical for these turbos. 00:02:42.160 --> 00:02:50.400 Again, our current engines have 13,500 hours of operations, and starts are anywhere between 00:02:50.400 --> 00:02:53.960 3,500 and 4,000 start and stops. 00:02:53.960 --> 00:02:59.920 It varies by engine, as we kind of vary how many hours of operations start and stop, so 00:02:59.920 --> 00:03:05.560 we're not overhauling them all at the same time, so we can stagger the maintenance. 00:03:05.560 --> 00:03:13.420 So based on the new service schedule that is being recommended, it's recommended that 00:03:13.420 --> 00:03:20.320 you start looking at the turbos at the 16,000 hour mark, which is our normal recommendation 00:03:20.320 --> 00:03:25.700 when the plant was built, or 2,500 starts. 00:03:25.700 --> 00:03:31.000 So you can see that we're above that 2,500 start/stops. 00:03:31.000 --> 00:03:37.600 So the manufacturer issued this bulletin in February of this year, or last year, excuse 00:03:37.600 --> 00:03:45.060 me, to prevent a catastrophic failure, to catch it before it actually occurs. 00:03:45.060 --> 00:03:53.920 So some of the maintenance tasks is to dismantle the turbo, check clearances, clean casings, 00:03:53.920 --> 00:04:00.880 clean nozzles, and then assess the rotator bearing parts, which could fail. 00:04:00.880 --> 00:04:05.720 And then make sure that the balancing is good for the turbos. 00:04:05.720 --> 00:04:08.920 So here's some of the estimates. 00:04:08.920 --> 00:04:17.480 So the average cost should a turbo be damaged, but repairable is 125,000 per turbo. 00:04:17.480 --> 00:04:23.120 There are 24 of them, so we could have as much as $3 million worth of repairs. 00:04:23.120 --> 00:04:29.800 However, a complete turbo replacement, average cost is 400,000. 00:04:29.800 --> 00:04:35.080 So it's important that we get to those turbos serviced then before we reach a catastrophic 00:04:35.080 --> 00:04:38.560 failure, which is what we're intending to do here. 00:04:38.560 --> 00:04:47.080 However, as an estimate, we're expecting potentially up to 10 turbos that may need to be replaced 00:04:47.080 --> 00:04:48.840 for a total of 4 million. 00:04:48.840 --> 00:04:56.040 Again, that can change if we can get to them before we actually reach a catastrophic failure. 00:04:56.040 --> 00:05:01.720 And so there in the pictures you see on the left-hand side is the turbine wheel, which 00:05:01.720 --> 00:05:06.720 is one of the ones that gets the most amount of stress because it is on the exhaust side 00:05:06.720 --> 00:05:15.040 of the turbo, and it has a more tendency to have stress fractures. 00:05:15.040 --> 00:05:19.000 So this RFP is for parts and services. 00:05:19.000 --> 00:05:27.480 Again, the ODM recommends checking the operation profile of the engine to verify if we have 00:05:27.480 --> 00:05:36.200 reached those recommendations of at least 2,500 start stops or hours of operation. 00:05:36.200 --> 00:05:43.240 Again, turbo overhauls will be performed by the ODM at their authorized workshop. 00:05:43.240 --> 00:05:50.080 They will provide the field services on-site and then also provide travel and accommodations 00:05:50.080 --> 00:05:53.360 for staff that are doing their work. 00:05:53.360 --> 00:06:00.880 Turbo parts, components, spare parts and normal maintenance intervals, inventory checks, repairs 00:06:00.880 --> 00:06:08.940 planned and unplanned is an estimated cost of $105,000 per unit for a five-year span 00:06:08.940 --> 00:06:16.360 on 24 turbos for a total of $2.52 million. 00:06:16.360 --> 00:06:25.120 So the summary of expenditure again is manufacturer and authorized repairs, restocking of critical 00:06:25.120 --> 00:06:35.440 components, restocking critical components for unplanned maintenance, 24 turbos on 12 00:06:35.440 --> 00:06:48.240 parts with an estimated potential complete repair or I guess a totaling of up to 10 turbos 00:06:48.240 --> 00:06:55.160 during the life of this RFP for a total of $4 million and expected overhaul costs which 00:06:55.160 --> 00:07:00.800 would capture all of the maintenance costs that would be needed to make sure that we 00:07:00.800 --> 00:07:04.560 don't have a catastrophic failure for all 24 turbos. 00:07:04.560 --> 00:07:09.120 That's $3 million, that's just regular preventative maintenance. 00:07:09.120 --> 00:07:22.840 And then we have critical components for $2.52 million for a total of $9,520,000. 00:07:22.840 --> 00:07:33.520 Of that, $2.5 million will be cash funded, the rest will be via 10-year bonds. 00:07:33.520 --> 00:07:41.020 And so again, the recommendation from staff is for PEB to provide the City Council recommendation 00:07:41.020 --> 00:07:48.600 to approve the RFP to a Celeron USA Incorporated to execute a five-year contract for the turbochargers 00:07:48.600 --> 00:07:52.080 at the Dension Energy Center. 00:07:52.080 --> 00:07:55.080 Any questions? 00:07:55.080 --> 00:08:04.280 Okay, so you see this at about five-year increments? 00:08:04.280 --> 00:08:09.120 Yes, that's what we're planning on doing this go-around. 00:08:09.120 --> 00:08:15.640 Again, the DEC was commissioned in 2018 June, so we're starting to approach the 10-year 00:08:15.640 --> 00:08:22.360 mark so it's, you know, we don't know if we're going to see any more, you know, the 00:08:22.360 --> 00:08:29.640 preventative maintenance is there to capture any further failures, but they are issuing 00:08:29.640 --> 00:08:35.120 this bulletin to start the servicing sooner rather than later, which is why we're bringing 00:08:35.120 --> 00:08:41.400 it now as opposed to at the 16,000 hour mark, which is supposed to be in about another year 00:08:41.400 --> 00:08:42.760 and a half, two years. 00:08:42.760 --> 00:08:47.260 So we're coming to prevent a catastrophic failure. 00:08:47.260 --> 00:08:51.100 So every five years, we're going to start issuing this out again. 00:08:51.100 --> 00:08:55.000 Was that common for them to come back and say, I mean, you've got, what was it, 3,500 00:08:55.000 --> 00:08:57.960 to 4,000 hours is what your original S was? 00:08:57.960 --> 00:08:58.960 Yes. 00:08:58.960 --> 00:09:03.040 And now they're saying, "Well, they're not as good as we thought they were," or... 00:09:03.040 --> 00:09:07.680 So those, it is just a recommendation by the ODM based on what they've been seeing out 00:09:07.680 --> 00:09:08.680 in the field, right? 00:09:08.680 --> 00:09:09.680 Well, yeah. 00:09:09.680 --> 00:09:14.640 And so these things can last as much as 30,000 hours, right? 00:09:14.640 --> 00:09:15.640 So... 00:09:15.640 --> 00:09:16.640 Well, 16, it leaves, right? 00:09:16.640 --> 00:09:17.640 Exactly, yes. 00:09:17.640 --> 00:09:22.160 So it's important that we start the preventative maintenance now to prevent any failures that 00:09:22.160 --> 00:09:25.900 will lead to a catastrophic failure, which is a higher cost. 00:09:25.900 --> 00:09:34.680 So the maintenance will hopefully prevent us from having bigger expenditures later. 00:09:34.680 --> 00:09:35.680 Okay. 00:09:35.680 --> 00:09:38.100 What was our original budget for that? 00:09:38.100 --> 00:09:43.720 So the original budget was in the CIP for two years from now. 00:09:43.720 --> 00:09:50.680 So we're accelerating the maintenance to prevent, again, those catastrophic failures before 00:09:50.680 --> 00:09:51.680 they occur, right? 00:09:51.680 --> 00:09:52.680 I understand. 00:09:52.680 --> 00:09:53.680 So it was part of the CIP budget. 00:09:53.680 --> 00:09:54.680 And Tony... 00:09:54.680 --> 00:09:58.920 If you get a flat tire before you've planned on having a flat tire, you replace the flat 00:09:58.920 --> 00:09:59.920 tire, but... 00:09:59.920 --> 00:10:03.800 Yeah, I think as Jose mentioned, this bulletin came out and kind of advanced the need for 00:10:03.800 --> 00:10:05.840 this project. 00:10:05.840 --> 00:10:10.720 We've budgeted this money now for probably at least five or seven years. 00:10:10.720 --> 00:10:16.120 We've had it in the CIP, and this is in conjunction with another project that will be coming to 00:10:16.120 --> 00:10:18.120 you for overhauls. 00:10:18.120 --> 00:10:25.680 But the total amount that we had was for fiscal year '29-'30, it was about $15 million total. 00:10:25.680 --> 00:10:27.680 But now we're looking at a little bit more than that. 00:10:27.680 --> 00:10:28.680 So... 00:10:28.680 --> 00:10:31.800 But yeah, it's been in the CIP for some time. 00:10:31.800 --> 00:10:32.800 Yeah. 00:10:32.800 --> 00:10:33.800 Okay. 00:10:33.800 --> 00:10:34.800 Thank you. 00:10:34.800 --> 00:10:35.800 Just... 00:10:35.800 --> 00:10:36.800 Good morning. 00:10:36.800 --> 00:10:37.800 Good morning. 00:10:37.800 --> 00:10:47.440 If I may, Acceleron, is this an extension of a contract we already have with them, or 00:10:47.440 --> 00:10:49.240 is this a brand new thing? 00:10:49.240 --> 00:10:52.960 Arthur, do we have a current contract with them? 00:10:52.960 --> 00:10:54.360 Can you come up here? 00:10:54.360 --> 00:10:59.200 So this is Arthur Pando, the new plant manager at the DEC. 00:10:59.200 --> 00:11:03.160 Arthur Pando, plant manager at the DIN Ninja Center. 00:11:03.160 --> 00:11:05.880 I can help answer any questions you all may have. 00:11:05.880 --> 00:11:15.080 So Acceleron, do we have an existing contract besides the OME or whoever it was that brought 00:11:15.080 --> 00:11:20.320 it to our attention, is this a brand new contract with them, or have we used them for this particular 00:11:20.320 --> 00:11:21.320 need? 00:11:21.320 --> 00:11:22.320 No, sir. 00:11:22.320 --> 00:11:24.440 It'll be a brand new contract with them. 00:11:24.440 --> 00:11:25.440 Okay. 00:11:25.440 --> 00:11:26.440 Yes. 00:11:26.440 --> 00:11:27.440 Could I go to... 00:11:27.440 --> 00:11:28.440 May I? 00:11:28.440 --> 00:11:45.080 Could you get slide three for me? 00:11:45.080 --> 00:11:47.200 So what is the... 00:11:47.200 --> 00:11:52.320 You may have alluded to some of this, but what do we... 00:11:52.320 --> 00:12:00.120 Theory wise, what are we looking at as far as an expected lifetime of timeframe for these 00:12:00.120 --> 00:12:01.120 things? 00:12:01.120 --> 00:12:02.120 Is it by the hour? 00:12:02.120 --> 00:12:04.320 Is it by the year? 00:12:04.320 --> 00:12:05.320 It varies. 00:12:05.320 --> 00:12:09.360 So we like to plan for by the hour, yes. 00:12:09.360 --> 00:12:14.920 But based on the inspections, it can deem turbochargers to be overhauled sooner. 00:12:14.920 --> 00:12:19.500 So main priority first is getting them inspected, checking for the damage, what the condition 00:12:19.500 --> 00:12:26.600 is of the turbos and these rotating components, and thus then determines the life. 00:12:26.600 --> 00:12:33.000 We've had these now, as Jose mentioned, going on almost nearing 10 years. 00:12:33.000 --> 00:12:39.020 Original plan was probably making it to the 15, 12 year mark. 00:12:39.020 --> 00:12:41.940 That's still what we expect. 00:12:41.940 --> 00:12:47.720 We just need to capture it and make sure we extend the life of. 00:12:47.720 --> 00:12:54.840 Level wise, they can go as long as up to 60,000 hours based on the service intervals happening 00:12:54.840 --> 00:12:57.400 and being conducted. 00:12:57.400 --> 00:13:00.880 Who have we used before this request? 00:13:00.880 --> 00:13:02.360 Has it been in house? 00:13:02.360 --> 00:13:03.360 It's all, yes. 00:13:03.360 --> 00:13:09.440 All the current maintenance inspections and repairs have all been in house by plant personnel. 00:13:09.440 --> 00:13:18.720 And so we're accelerating preventive maintenance by, forgive me, forget the hours, can we kind 00:13:18.720 --> 00:13:22.880 of do it with something I would recognize like years? 00:13:22.880 --> 00:13:28.240 We're accelerating the intervals by about two years. 00:13:28.240 --> 00:13:34.160 And that's just based on the ODM recommendation that was previously been provided to us. 00:13:34.160 --> 00:13:35.880 And they got that from what? 00:13:35.880 --> 00:13:42.800 They got that from their own in-house inspections and then what their field service guys out 00:13:42.800 --> 00:13:45.880 at other plants are observing. 00:13:45.880 --> 00:13:54.320 So the contract now, how large it is based on the amount we're having to perform is why 00:13:54.320 --> 00:14:01.160 we're bringing it to contract, just the manpower we do not have to do all 24 with the staff 00:14:01.160 --> 00:14:02.160 we have currently. 00:14:02.160 --> 00:14:13.440 If I may, could you go to slide five? 00:14:13.440 --> 00:14:20.920 So where's the location of their workshop? 00:14:20.920 --> 00:14:25.140 They are located in Florida, I believe. 00:14:25.140 --> 00:14:28.080 They have multiple locations throughout. 00:14:28.080 --> 00:14:34.520 Some of them are in Europe, and there is a smaller workshop where they perform minor 00:14:34.520 --> 00:14:40.240 maintenance, just quick overhauls in Houston and Florida. 00:14:40.240 --> 00:14:47.880 I'm just curious on that 2.5, 2 million, is that, would that be thought of as the extra 00:14:47.880 --> 00:14:54.280 expense from what we had originally budgeted because of starting early or am I putting 00:14:54.280 --> 00:14:56.280 that number in the wrong pigeon hole? 00:14:56.280 --> 00:15:00.960 I'm sorry, repeat that. 00:15:00.960 --> 00:15:04.360 So you're asking where that number stems from? 00:15:04.360 --> 00:15:12.600 From our old way of doing our maintenance, is that this 2.5, is that the extra that we 00:15:12.600 --> 00:15:14.680 were not ready for? 00:15:14.680 --> 00:15:15.680 No. 00:15:15.680 --> 00:15:22.000 We've been ready for it, but up to getting into the larger hours, it has all been very 00:15:22.000 --> 00:15:27.320 small maintenance intervals, so a couple sensors, maybe cleaning some oil pipes, some O rings 00:15:27.320 --> 00:15:29.160 here and there. 00:15:29.160 --> 00:15:33.760 When we creep into the higher hours of the intervals, you start getting into the major 00:15:33.760 --> 00:15:39.280 components, nozzle rings, casings, and bearings. 00:15:39.280 --> 00:15:41.000 And if I could go page six. 00:15:41.000 --> 00:15:48.320 And Rob, just so, so we've been budgeting about $15, $17 million at the exact number 00:15:48.320 --> 00:15:54.360 in these turbos and these overhauls projects, now we're looking closer to $20 million. 00:15:54.360 --> 00:15:59.920 That's about a $3 to $5 million increase now that we're starting to get these actual proposals 00:15:59.920 --> 00:16:02.880 and actually firming those numbers up. 00:16:02.880 --> 00:16:09.240 That $2.5 million, just as a reminder, during Yuri, after Yuri, if you remember, Brazos 00:16:09.240 --> 00:16:13.920 didn't pay their bill and there was a settlement, that's where that 2.5 million is coming from. 00:16:13.920 --> 00:16:19.360 We've been holding onto that 2.5 million for these projects and our hope is to continue 00:16:19.360 --> 00:16:26.240 to add additional cash into that pot and try to minimize how much debt we're issuing for 00:16:26.240 --> 00:16:27.960 these projects. 00:16:27.960 --> 00:16:31.760 And then if I may ask, because that leads to my question on the original amount of let's 00:16:31.760 --> 00:16:37.840 say $15 million or such, what time period was that to cover? 00:16:37.840 --> 00:16:42.120 That was going to start in fiscal year '20, we were going to plan to issue that beginning 00:16:42.120 --> 00:16:47.080 in fiscal year '29 and '30, but because of this new bulletin, we've had to accelerate 00:16:47.080 --> 00:16:48.560 that sooner. 00:16:48.560 --> 00:16:53.800 But that number was, the thought was a 10-year type of use. 00:16:53.800 --> 00:16:54.800 Yeah, correct. 00:16:54.800 --> 00:16:57.480 But now we're seeing that that may be accelerated due to ... 00:16:57.480 --> 00:17:03.660 Due to wear and tear. 00:17:03.660 --> 00:17:04.660 Thank you. 00:17:04.660 --> 00:17:05.660 I needed the right term. 00:17:05.660 --> 00:17:06.660 I didn't want to be ignorant. 00:17:06.660 --> 00:17:10.480 I think it's important to understand, right, so the bulletin is based on inspections and 00:17:10.480 --> 00:17:15.200 experiences that have been seen with these types of engines and other plans, right? 00:17:15.200 --> 00:17:19.520 They're going to have to come in and look at these specific engines and then give us 00:17:19.520 --> 00:17:24.120 those recommendations, but we're planning for the worst, right? 00:17:24.120 --> 00:17:29.280 So then my last question, well, probably not, but I'm going to ask this one. 00:17:29.280 --> 00:17:34.400 We've had our own self-contained maintenance program on this. 00:17:34.400 --> 00:17:39.920 We are now coming into a phase where we're asking an outside source to do it and we've 00:17:39.920 --> 00:17:46.320 possibly shortened the time frame to five years, let's say, versus six or seven years 00:17:46.320 --> 00:17:50.200 for regular maintenance, and I don't want to hold you to those numbers, but I'm looking 00:17:50.200 --> 00:17:54.840 at ... We're looking at a five-year increment on all of this, even though we're doing these 00:17:54.840 --> 00:17:59.080 extensions one year at a time? 00:17:59.080 --> 00:18:01.080 Correct. 00:18:01.080 --> 00:18:10.320 The one-year increment is kind of offset, so yes, we will perform the services to get 00:18:10.320 --> 00:18:17.040 them inspected and such, and then year two, year three is the planned and unplanned maintenance 00:18:17.040 --> 00:18:18.040 scope of it. 00:18:18.040 --> 00:18:23.960 So now we're just upkeeping the stuff that we can perform in-house with, and then around 00:18:23.960 --> 00:18:31.080 year three, yeah, about in three, four is when we would do the second. 00:18:31.080 --> 00:18:34.600 So then that's why the cost would go up to around 20 million you're talking about. 00:18:34.600 --> 00:18:38.920 Well, and the turbos aren't going to all be done all at once, right? 00:18:38.920 --> 00:18:43.920 They're going to be phased in over that period of time, and it may take longer. 00:18:43.920 --> 00:18:47.000 And that's why it's a five-year type term. 00:18:47.000 --> 00:18:51.120 And so we're paying that nine million whether they're replacing turbos or not within that 00:18:51.120 --> 00:18:52.480 period, but they're doing inspections? 00:18:52.480 --> 00:18:53.480 Is that what we're saying? 00:18:53.480 --> 00:18:54.480 Sure. 00:18:54.480 --> 00:18:55.480 No. 00:18:55.480 --> 00:18:58.600 We won't be paying the nine million whether they do or don't. 00:18:58.600 --> 00:19:00.000 It's all based on... 00:19:00.000 --> 00:19:01.000 If it's needed. 00:19:01.000 --> 00:19:02.000 If it's needed. 00:19:02.000 --> 00:19:03.000 Correct. 00:19:03.000 --> 00:19:04.960 Thank you for your information. 00:19:04.960 --> 00:19:10.840 So basically, this whole budgetary thing is based on, yeah, it hadn't happened yet, but 00:19:10.840 --> 00:19:13.560 they're telling us to look a little earlier now. 00:19:13.560 --> 00:19:14.560 Yes, sir. 00:19:14.560 --> 00:19:19.320 And we'd like to keep replacing motors, of course, or they would. 00:19:19.320 --> 00:19:22.020 And not all the costs are going to hit all at once. 00:19:22.020 --> 00:19:26.800 So we've tried to...I've asked Arthur to look at it as crystal ball and tell me, hey, if 00:19:26.800 --> 00:19:31.320 you can cash flow this, how can you cash flow this over five years so that I'm not issuing 00:19:31.320 --> 00:19:36.300 everything all at once, and it could potentially give us time to look at revenue funding some 00:19:36.300 --> 00:19:37.300 of this. 00:19:37.300 --> 00:19:40.920 You know, not to get ahead of Matt, but there'll be some financial policy recommendations 00:19:40.920 --> 00:19:44.600 that are going to be coming to you, and we're going to be targeting some amount annually 00:19:44.600 --> 00:19:49.560 that we're going to cash fund in our CIP, and this is one of the projects that we would 00:19:49.560 --> 00:19:53.720 look at, cash funding versus debt funding. 00:19:53.720 --> 00:19:56.640 Yeah, good. 00:19:56.640 --> 00:20:02.480 Just based on my ignorance of the plant and how it operates, do these motors, are they 00:20:02.480 --> 00:20:04.960 pretty even in the amount of hours? 00:20:04.960 --> 00:20:07.920 I mean, they all run at the same time, right? 00:20:07.920 --> 00:20:08.920 Correct. 00:20:08.920 --> 00:20:11.040 You start one, you start them all. 00:20:11.040 --> 00:20:14.880 In terms of dispatch, they are dispatched by aggregate. 00:20:14.880 --> 00:20:19.720 So we could start, and each aggregate consists of three units per aggregate. 00:20:19.720 --> 00:20:24.080 So aggregate A is one, two, three, B is four, five, six, so on and so on. 00:20:24.080 --> 00:20:27.480 So there is times that, yes, that we could be called upon and say, hey, start aggregates 00:20:27.480 --> 00:20:32.840 only, A and B is one through six, seven through 12 will stay down. 00:20:32.840 --> 00:20:34.280 You just roll them? 00:20:34.280 --> 00:20:35.280 Yes. 00:20:35.280 --> 00:20:37.480 Yeah, we try and keep them. 00:20:37.480 --> 00:20:42.080 So you don't, one is not start every time, it may be six that starts again. 00:20:42.080 --> 00:20:43.080 Correct. 00:20:43.080 --> 00:20:44.080 Okay. 00:20:44.080 --> 00:20:49.440 So the EMO tries to start up one aggregate, see if the price holds. 00:20:49.440 --> 00:20:54.080 If the price holds, then we bring up the next one, and then we just keep adding them in 00:20:54.080 --> 00:20:57.520 until we make sure that the price is going to hold. 00:20:57.520 --> 00:21:05.160 That way we avoid a start and stop unneeded and avoids this type of premature wear and 00:21:05.160 --> 00:21:06.520 tear type of thing. 00:21:06.520 --> 00:21:10.560 So we do try to vary the hours by aggregate. 00:21:10.560 --> 00:21:11.560 Okay. 00:21:11.560 --> 00:21:12.560 Got it. 00:21:12.560 --> 00:21:16.080 I just have a question more on the 10-year bond of this. 00:21:16.080 --> 00:21:21.480 So we're financing 10 years worth, or we're financing five years of service over 10 years. 00:21:21.480 --> 00:21:22.600 What happens after the five years? 00:21:22.600 --> 00:21:25.640 Do we take out another bond for another five years? 00:21:25.640 --> 00:21:31.440 Well, I think ideally, one, so anything that is maintenance related, and that's what he's 00:21:31.440 --> 00:21:32.840 identified here, right? 00:21:32.840 --> 00:21:37.280 So we're targeting that two and a half million for critical components of normal maintenance 00:21:37.280 --> 00:21:43.040 to be the cash funding component, then we're only funding the major capital assets with 00:21:43.040 --> 00:21:44.040 10-year bonds. 00:21:44.040 --> 00:21:48.920 Now, the idea would be is that, you know, that you do this five years, it doesn't come 00:21:48.920 --> 00:21:52.080 around in another five, maybe 10 years, right? 00:21:52.080 --> 00:21:53.780 So you're staggering. 00:21:53.780 --> 00:21:55.080 So why 10 years, right? 00:21:55.080 --> 00:22:01.120 10 years, what we're trying to do, at least this is kind of the intent, is we issued bonds 00:22:01.120 --> 00:22:04.360 for the DEC in 2017, right? 00:22:04.360 --> 00:22:06.040 Those were 20-year bonds. 00:22:06.040 --> 00:22:13.480 They pay off in 2037 by limiting the life of the new bonds that we issue, we're trying 00:22:13.480 --> 00:22:20.000 not to expand the outstanding debt for the DEC beyond 2037, right? 00:22:20.000 --> 00:22:21.360 That's kind of the intent. 00:22:21.360 --> 00:22:26.480 So if we had to come back here again in five years, we'd likely be looking at five-year 00:22:26.480 --> 00:22:29.040 debt, not 10-year debt, if that was even possible. 00:22:29.040 --> 00:22:34.520 But I think given some of the financial strategies, what we're actually talking about, at least 00:22:34.520 --> 00:22:41.840 internally at DME, is, hey, can we build some type of cash fund that's just for capital 00:22:41.840 --> 00:22:44.280 and minimize how much debt we're issuing for the DEC? 00:22:44.280 --> 00:22:45.280 Yes. 00:22:45.280 --> 00:22:48.680 I mean, and that's fundamentally what I'm thinking, is I don't want to pay 10 years 00:22:48.680 --> 00:22:51.920 for something that I've got five years of life out of. 00:22:51.920 --> 00:22:55.640 It just doesn't make sense that way for us, for taxpayers to continually pay interest 00:22:55.640 --> 00:22:59.360 on a bond for an asset that's fully depreciated and no longer in use. 00:22:59.360 --> 00:23:06.720 Now, we're talking about components of the DEC, in total, the plan has more of a 30-to-50-year 00:23:06.720 --> 00:23:07.720 life on it, right? 00:23:07.720 --> 00:23:13.320 And so the reason we do these things is to continue to expand the life of the overall 00:23:13.320 --> 00:23:14.320 facility. 00:23:14.320 --> 00:23:18.960 So we don't anticipate another five years financing another X million dollars for 10 00:23:18.960 --> 00:23:19.960 more years? 00:23:19.960 --> 00:23:20.960 No, probably not. 00:23:20.960 --> 00:23:23.560 I mean, I'd have to go back and look at our CFP where we program it, but that's probably 00:23:23.560 --> 00:23:25.520 outside of that next 10-year window. 00:23:25.520 --> 00:23:26.520 Okay. 00:23:26.520 --> 00:23:27.520 Thank you. 00:23:27.520 --> 00:23:30.160 I do have one question. 00:23:30.160 --> 00:23:35.960 The original recommendation was 16,000 hours and 2,500 cycles. 00:23:35.960 --> 00:23:43.920 We're only at 13,000 hours and 3,500 cycles, our cycles are way up. 00:23:43.920 --> 00:23:50.040 Now that we have this experience, moving forward, do we have strategies to try to limit all 00:23:50.040 --> 00:23:51.040 that uptime down time? 00:23:51.040 --> 00:23:56.080 I guess that's when the components are that susceptible, right? 00:23:56.080 --> 00:24:00.200 Getting hot, cooling off and things like that, or is it just is what it is and that's the 00:24:00.200 --> 00:24:01.200 way it's going to be? 00:24:01.200 --> 00:24:06.160 I mean, Arthur's job out in the plant and the guy's plant is to be ready to go whenever 00:24:06.160 --> 00:24:07.160 we need them, right? 00:24:07.160 --> 00:24:10.560 So whenever we get that price single, it needs to be ready to go, right? 00:24:10.560 --> 00:24:14.000 And so we put a lot of pressure, unfortunately, on those guys out there. 00:24:14.000 --> 00:24:24.400 But yeah, so the goal is to try to have this facility ready to go at a moment's notice. 00:24:24.400 --> 00:24:29.680 And so following those bulletins, if they've changed, it's part of that strategy, right? 00:24:29.680 --> 00:24:33.200 And so we were based on hours. 00:24:33.200 --> 00:24:39.160 Now there's these hours and this 2,500 measure that it was before, 3,500. 00:24:39.160 --> 00:24:46.980 And so now of the two, which one's going to have this plan ready to go sooner? 00:24:46.980 --> 00:24:50.320 One more question, if I may. 00:24:50.320 --> 00:24:54.000 So was the Acceleron, was that the lowest bidder? 00:24:54.000 --> 00:24:56.880 Or do we use the bidding process for something like this? 00:24:56.880 --> 00:24:58.840 Yes, we did use the bidding process. 00:24:58.840 --> 00:25:00.800 They were the lowest. 00:25:00.800 --> 00:25:02.760 How many bids did we ask? 00:25:02.760 --> 00:25:05.840 I believe we had three come in. 00:25:05.840 --> 00:25:12.840 Was it two? 00:25:12.840 --> 00:25:16.480 Uh-oh. 00:25:16.480 --> 00:25:18.000 Lori Hill, Purchasing Manager. 00:25:18.000 --> 00:25:20.040 They evaluated two vendors for this. 00:25:20.040 --> 00:25:22.080 Familiar with both of them? 00:25:22.080 --> 00:25:23.080 Yes. 00:25:23.080 --> 00:25:24.080 Yes, they were. 00:25:24.080 --> 00:25:27.240 And this was the only vendor that actually bid all lines and could provide all products. 00:25:27.240 --> 00:25:28.240 Thank you. 00:25:28.240 --> 00:25:29.240 That's what I was going to say. 00:25:29.240 --> 00:25:32.240 When I looked at the evaluation, the other one didn't really fill it out. 00:25:32.240 --> 00:25:33.240 Thank you, Mr. Chair. 00:25:33.240 --> 00:25:34.240 Any other comments? 00:25:34.240 --> 00:25:35.240 Do you want to undertake a motion? 00:25:35.240 --> 00:25:36.240 We have a motion and a second. 00:25:36.240 --> 00:25:37.240 All in favor? 00:25:37.240 --> 00:25:38.240 Aye. 00:25:38.240 --> 00:25:39.240 Any opposed? 00:25:39.240 --> 00:25:53.680 Passes. 00:25:53.680 --> 00:25:58.840 With that, we'll move on to Item C, Tony, Management Reports. 00:25:58.840 --> 00:25:59.840 Yes, sir, Mr. Chair. 00:25:59.840 --> 00:26:03.760 I'm a member of the PB, so I don't have a lot for you. 00:26:03.760 --> 00:26:06.400 No changes to the future agenda items. 00:26:06.400 --> 00:26:09.920 Obviously, I'm going to keep just talking about reminding you about budget items. 00:26:09.920 --> 00:26:11.400 Budget items are those that are going to be coming to you. 00:26:11.400 --> 00:26:16.480 Make sure you make note of those specific dates. 00:26:16.480 --> 00:26:23.720 And then for new business action items, you know, we hope to provide the right information 00:26:23.720 --> 00:26:26.400 that was requested at your next meeting in April. 00:26:26.400 --> 00:26:31.560 I think given the fact that we had our Chair and Vice Chair out today, that probably makes 00:26:31.560 --> 00:26:32.560 sense for that. 00:26:32.560 --> 00:26:36.040 So it was not planned that way, but certainly worked out that way. 00:26:36.040 --> 00:26:41.840 And the Water Wastewater Department on April 13th will also be bringing to you a work session 00:26:41.840 --> 00:26:42.840 item. 00:26:42.840 --> 00:26:48.640 And the only thing that I'll mention as well, DME is also looking at maybe adding some type 00:26:48.640 --> 00:26:53.160 of quarterly type of update for you as well, kind of the way that the Water Wastewater 00:26:53.160 --> 00:26:54.160 has done this. 00:26:54.160 --> 00:26:58.120 We're still kind of working through that internally, but my hope is that by the next meeting, we'll 00:26:58.120 --> 00:27:03.680 add that to your calendar as well and just, you know, bring you information on items that 00:27:03.680 --> 00:27:04.680 may be of interest. 00:27:04.680 --> 00:27:10.480 So if you have thoughts on things that you want to know about within DME or even Solid 00:27:10.480 --> 00:27:12.040 Waste, please let us know. 00:27:12.040 --> 00:27:14.640 We can try to get those items scheduled. 00:27:14.640 --> 00:27:15.640 Fantastic. 00:27:15.640 --> 00:27:17.840 Appreciate your help on that. 00:27:17.840 --> 00:27:20.440 I know that getting those updates is going to be important. 00:27:20.440 --> 00:27:23.480 I think we've all been looking forward to it. 00:27:23.480 --> 00:27:26.760 And with that, we're adjourned. 00:27:26.760 --> 00:27:30.740 So it shall be. 00:27:30.740 --> 00:27:32.280 We are adjourned.