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 Okay, it is nine o'clock and we have a virtual quorum, so we'll call to order the Public

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 Utilities Board meeting of June 8, 2020.

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 The first item on the agenda is to approve consent items A through G. Does any board

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 member wish to pull one of the items?

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 Yes, Karen.

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 I'd like to pull A and D, please.

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 And a reminder, we should probably all mute and then just raise your hand so that we're

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 not talking over each other.

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 Any other board members wish to pull any items?

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 All right, so do we have a motion to approve B, C, E, F, and G?

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 I so move.

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 Second.

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 All in favor say, "aye."

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 Aye.

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 Opposed?

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 Serious.

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 Okay, item A. Go ahead, Karen.

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 She's muted, you're muted.

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 You need to unmute.

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 I unmuted to vote.

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 Anyway, I remember when this item first came up, I was on the PUB just for a few months,

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 and I was really impressed with the staff trying to accommodate the landowner and cut

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 down the sound.

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 I mean, they really just went above and beyond, so congrats staff.

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 Anyway, at the time there was a discussion of putting in a berm to cut down the noise,

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 and I was wondering if that had been considered.

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 And then my second question is, is there any evidence that we're gonna get acceptable bids

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 on this?

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 I agree we don't need to spend a million dollars on landowners.

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 Nice complaint, but is there any other solution that we can go to for this?

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 Karen, I'm sorry, Karen, we have Chris Lutrik from Ditton Municipal Electric that can answer

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 the questions for you.

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 Hi, Chris.

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 Hello, how are you doing?

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 I think your first question was about the berm, something that we proposed with the

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 initial presentation, but if you remember that that berm in the sound modeling was only

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 gonna provide 0.2 dBs of attenuation, that was not worth the cost.

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 We did get the landscaping berm in in the trees, so that's been done, but that berm

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 is not really a viable option for us.

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 So the second part of that is we had to extend the RFP two times just to get one bid in,

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 and the presentation we gave to you when you first got on PEB was based off a sound study.

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 That engineering company elected not even to submit a bid.

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 So our engineering estimate we had for the first presentation was based off of their

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 information, and then they did not propose a bid.

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 So at this time, we think part of it is the liability.

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 So these guys are gonna be working aerial above our engines.

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 So in the RFP, there was language where they had to take responsibility for damage to the

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 engines.

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 So.

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 Okay.

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 And we're kind of out of sync here, and we can't mention it here, but there is a closed

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 session item later in this show, and we'll have some other options for you.

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00:03:38,720 --> 00:03:39,720
 Yeah.

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 All right.

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 Thank you.

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 You're welcome.

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 That's it for me.

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 On the A.

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 Do we have a motion to approve?

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 Sure.

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 I'll move.

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 I'll second.

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 All in favor, say aye.

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 Aye.

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 Aye.

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 Motion carries.

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 Okay.

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 Item D.

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 I was curious if this indemnity escrow account was a new thing with DMPA, and if we knew

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 how much it was gonna cost us.

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 I realize it's an escrow, but.

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 Karen, we have a Smith Day from Determinus Ball Electric on the line who will be able

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 to explain the details.

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 Smith.

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 Smith, you're muted.

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 Hello.

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 Can you hear me now?

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 Yes.

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 All right, sorry.

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 The Zoom has an independent mute feature other than the phone.

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 This is Smith Day.

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 I'm with the municipal electric, the regulatory and risk manager, and I speak a little bit

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 about the, to answer your question on the agreement, this indemnity agreement actually

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 is a creature from the joint operating agreement for TMPA, and the joint operating agreement

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 is, was put together just a ways back, a couple years at least, and this was from schedule

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 H of that agreement.

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 So all the cities at the time agreed that they would create this fund.

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 And so this is a, this is actually, like I said, a creature of fulfilling the promise

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 of that original obligation, and the amount is already funded.

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 It was $5 million, TMPA already has it.

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 Are you satisfied, Karen?

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 Yeah.

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 My mute button seems to be going on and off.

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 Yeah, that's fine for me.

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 Thank you.

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 All right.

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 Motion for item D.

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 Move approval.

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 I second.

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 All in favor say aye.

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 Aye.

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 Opposed?

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 Okay, motion carries.

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 Next item is consider the approval of the minutes of May 11th, 2020.

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 Do we have a motion to approve?

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 I move we approve.

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 Second.

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 All in favor say aye.

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 Aye.

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 Okay, next item B consider recommending the adoption of an ordinance for the City of Denton

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 with JDK Associates for the installation of a gravity retaining wall in the Brinker substation

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 for the amount of $755,296.68.

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 Good morning.

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 Do we have a presentation on that?

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 Yes, Terry Nolte, DME.

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 Let's see.

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 Hello, Terry.

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 Can you see that presentation?

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 Nope.

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 Not yet.

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 All right, hold on a second.

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 I've got to share.

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 There we go.

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 Now can you see it?

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 Now we can.

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 Yes.

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 Okay.

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 Good morning, Terry Nolte, DME, Assistant General Manager.

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 This is a presentation about a gravity wall that we're proposing to build at the Brinker

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 substation.

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 This site has about a 30-foot elevation change which requires some sort of a wall to keep

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 the soil from eroding into the substation site itself.

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 Two options that were considered, one was the gravity retaining walls.

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 We have good experience with those and then a standard concrete wall.

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 This is a photo of the, or a print of the site itself and as you can see, this whole

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 entire corner on the lower left is where the wall goes.

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 It's 728-foot long and it has a 22-foot maximum height that needs to be retained.

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 This is just a diagram of the retaining wall.

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 I think everybody's pretty familiar with how these blocks work and we use a geotechnical

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 geotextile fabric and, you know, the blocks are placed inside, the fabrics and the fill

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 is placed inside the blocks and all the blocks are anchored together and provide the rigidity

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 necessary.

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 Here is a breakdown of the costs.

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 Total is $755,296.68.

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 And we're recommending that we award this to JDK Associates.

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 They did receive the highest evaluated score and also, interestingly, had the lowest price.

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 With that, I will answer any questions you might have.

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 Could you go back to a couple of slides?

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 Yeah, right there.

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 Is there any reason why this, I'm just curious, that you use, let me ask this way, does a

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 Bermuda solid sod require a lot of watering or is it?

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 No.

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 Okay.

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 And I'm wondering, and the temporary irrigation system, is that for the sod?

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 Yes sir.

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 Yes sir.

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 Is there any way that could use indigenous plants there, buffalo grass, anything like

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 that that would not require a $13,000 temporary irrigation system?

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 I think this grass is a native grass that really doesn't require a lot of maintenance.

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 So then why does it have an irrigation system?

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 Oh, that's to make sure that it gets established.

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 Because if it doesn't get established, then the soil will erode and we'll have a area

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 behind the wall.

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 Okay.

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 Thank you.

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 Any other questions?

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 Billy?

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 I noticed the disparity in prices from the different vendors and I know that happens.

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 Was there different designs offered by different people or was it all just the one design?

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 No, we specified the design.

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 We were quite surprised as well in the variation of the bids.

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 You saw the summary sheet, we had significantly higher bids than this one.

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 This contractor actually had very good references and has done quite a few projects similar

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 to this.

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 Yeah, I'm familiar with them.

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 I don't have anything bad to say at all about them.

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 So just curious as we knew by the difference in pricing across the board.

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 It happens though, I get it.

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 Maybe they needed to work.

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 Yeah.

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 Okay.

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 That's good.

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 Thank you.

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 And Russ?

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 Go ahead, Russ.

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 Yeah, this is just a comment, Terry.

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 I looked at this package, the background material over pretty close and looked at the comparison

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 of the bids and the way the purchasing group here did the evaluation and it was the process

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 was very impressive to me, looked like you guys did a good job in putting this together.

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 The work is well-defined and you took more than just a cursory look at the bids that

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 were submitted and I was impressed with the process here.

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 It looks like you did the right thing.

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 I totally agree with your recommendation.

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 We appreciate that our engineers and purchasing have a long established procedure to make

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 sure that we're trying to get the best value for our ratepayers.

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 Barbara, you're muted.

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 Did you have a question?

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 Okay.

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 It shows that I'm muted.

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 Oh, you're muted again, Barbara.

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00:13:18,600 --> 00:13:19,840
 Okay.

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00:13:19,840 --> 00:13:27,640
 It's showing up mute for me, but are the brick that, not the brick, the walls.

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 Does that look anything like what's around the landfill?

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 Yeah, it's very similar, very similar.

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00:13:37,400 --> 00:13:40,920
 Thank you.

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 Any others?

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00:13:41,920 --> 00:13:42,920
 All right.

208
00:13:42,920 --> 00:13:45,680
 Do we have a motion to approve item B?

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00:13:45,680 --> 00:13:46,680
 Approve.

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00:13:46,680 --> 00:13:47,680
 Move.

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00:13:47,680 --> 00:13:53,160
 In a second, I guess we have many approving.

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00:13:53,160 --> 00:13:54,160
 Second?

213
00:13:54,160 --> 00:13:55,160
 I second.

214
00:13:55,160 --> 00:13:58,320
 Okay.

215
00:13:58,320 --> 00:14:00,240
 All in favor say aye.

216
00:14:00,240 --> 00:14:01,240
 Aye.

217
00:14:01,240 --> 00:14:02,240
 Okay.

218
00:14:02,240 --> 00:14:03,240
 Opposed?

219
00:14:03,240 --> 00:14:05,280
 Motion carries.

220
00:14:05,280 --> 00:14:10,420
 Management update.

221
00:14:10,420 --> 00:14:12,960
 Madam Chair, members of the board, good morning.

222
00:14:12,960 --> 00:14:14,000
 Not a whole lot to say.

223
00:14:14,000 --> 00:14:21,680
 We do have the management study that was conducted for the utility, water utilities and for municipal

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 electric.

225
00:14:22,680 --> 00:14:23,680
 It's attached.

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 It's quite lengthy.

227
00:14:24,680 --> 00:14:29,880
 We do have on the line, Ken Banks, if you have any questions specific to that.

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00:14:29,880 --> 00:14:34,920
 Looking ahead in your future agenda items, as you can see, we'll be having a lot of budget

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 discussions over the coming weeks, so we'll get back on schedule with those items.

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 And then on the new business action items that we'll be bringing forward at your next

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 meeting, the environmental purchasing policy.

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00:14:48,480 --> 00:14:54,040
 And then lastly, just as a reminder, month of May we met just for the one time, but starting

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 this month we'll be meeting on our regular schedule twice a month, so we'll get back

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 on track.

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00:14:58,880 --> 00:15:02,420
 Thank you, Mario.

236
00:15:02,420 --> 00:15:03,420
 Concluding items.

237
00:15:03,420 --> 00:15:05,320
 Does any board member -- oh, go ahead, Ed.

238
00:15:05,320 --> 00:15:12,380
 I just -- I asked a couple of questions at February 24th's meeting, and they're not crucial

239
00:15:12,380 --> 00:15:17,280
 and they probably got lost in the shuffle with what's been happening with COVID.

240
00:15:17,280 --> 00:15:27,680
 But just to repeat, I asked for a copy of the 2015 clean fleet ordinance, and I asked

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00:15:27,680 --> 00:15:35,080
 what percentage of our current city fleet is hybrid or EV electric.

242
00:15:35,080 --> 00:15:41,840
 So at some point if somebody could get back to me from staff about that clean fleet ordinance

243
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 and the percentage of current hybrid and EV in the fleet, I'd appreciate it.

244
00:15:50,200 --> 00:15:51,200
 Thank you.

245
00:15:51,200 --> 00:15:52,200
 Yes, sir, will do.

246
00:15:52,200 --> 00:15:53,200
 Thank you.

247
00:15:53,200 --> 00:16:01,400
 I have a question, maybe just a comment, about the management study.

248
00:16:01,400 --> 00:16:05,880
 It doesn't require an answer now, but it's something I'd like the appropriate person

249
00:16:05,880 --> 00:16:11,660
 to think about and respond when it comes time to make their budget presentation.

250
00:16:11,660 --> 00:16:20,800
 And that is, on about slide 88 or 89 in this 260-some slide presentation, they showed the

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00:16:20,800 --> 00:16:30,080
 number by each year, the number of capital -- approved capital dollars for projects that

252
00:16:30,080 --> 00:16:37,980
 were not spent, and that number grew over the last three or four years.

253
00:16:37,980 --> 00:16:46,080
 So if I'm understanding this right, we're -- the city is approving more capital expenditures

254
00:16:46,080 --> 00:16:51,600
 than the respective utility is able to accomplish.

255
00:16:51,600 --> 00:16:57,180
 And I wonder is -- what I wonder is, what's being done to address that?

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 Are we getting further behind?

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00:17:00,040 --> 00:17:02,200
 Is any of that going to be made up?

258
00:17:02,200 --> 00:17:03,760
 Are we -- what are we letting go?

259
00:17:03,760 --> 00:17:07,640
 What are we left -- what's being left undone that should be done?

260
00:17:07,640 --> 00:17:12,180
 That's the nature of my question.

261
00:17:12,180 --> 00:17:14,840
 We can certainly cover that in a bunch of discussions.

262
00:17:14,840 --> 00:17:15,840
 Okay.

263
00:17:15,840 --> 00:17:20,680
 Yes, Karen, go ahead.

264
00:17:20,680 --> 00:17:27,000
 Just wanted to know -- this doesn't need to be a formal report or anything, but I'm just

265
00:17:27,000 --> 00:17:30,480
 curious about the status of the landfill expansion.

266
00:17:30,480 --> 00:17:36,640
 I know that's in public comment at this point, I think, but we had a -- I have a note from

267
00:17:36,640 --> 00:17:43,080
 the January 13th meeting that council was receiving a report, and we would receive information

268
00:17:43,080 --> 00:17:49,080
 later, and I'm not remembering hearing about it, although I might have slept.

269
00:17:49,080 --> 00:17:50,080
 Correct.

270
00:17:50,080 --> 00:17:53,520
 And we can give you an update in the next meeting or even through an informal staff

271
00:17:53,520 --> 00:17:54,520
 report.

272
00:17:54,520 --> 00:17:58,960
 But we were on track prior to COVID to have those public meetings earlier this spring.

273
00:17:58,960 --> 00:18:01,960
 All those were postponed until later in June.

274
00:18:01,960 --> 00:18:04,000
 So we'll give you an update on that.

275
00:18:04,000 --> 00:18:07,840
 We provided council with an informal staff report; we can resurrect that and send it

276
00:18:07,840 --> 00:18:08,840
 to the PUB.

277
00:18:08,840 --> 00:18:09,840
 All right.

278
00:18:09,840 --> 00:18:10,840
 Thanks, Mario.

279
00:18:10,840 --> 00:18:11,840
 You bet.

280
00:18:11,840 --> 00:18:12,840
 All right.

281
00:18:12,840 --> 00:18:17,640
 So did we do concluding items?

282
00:18:17,640 --> 00:18:18,640
 I'm sorry.

283
00:18:18,640 --> 00:18:21,780
 This virtual is -- gets me a little off.

284
00:18:21,780 --> 00:18:24,680
 Any concluding items from the board?

285
00:18:24,680 --> 00:18:31,360
 Something you want added to the agenda or -- okay.

286
00:18:31,360 --> 00:18:32,360
 I guess not.

287
00:18:32,360 --> 00:18:34,920
 Then we'll go into work sessions.

288
00:18:34,920 --> 00:18:39,520
 We're going to receive a report and hold a discussion regarding the 2019 Water Loss Audit

289
00:18:39,520 --> 00:18:40,520
 Report.

290
00:18:40,520 --> 00:18:45,800
 Good morning, board members.

291
00:18:45,800 --> 00:18:47,080
 This is Tyler Dawson.

292
00:18:47,080 --> 00:18:48,360
 I'm with Water Utilities.

293
00:18:48,360 --> 00:18:55,240
 I'm the manager of asset management.

294
00:18:55,240 --> 00:18:58,680
 And I have a report for you here on the Water Loss Audit for 2019.

295
00:18:58,680 --> 00:19:05,080
 This is a regulatory report that we do annually through the Texas Water Development Board.

296
00:19:05,080 --> 00:19:09,340
 We submitted this in April ahead of our May 1st deadline, so this is a report on the findings

297
00:19:09,340 --> 00:19:12,880
 of that report.

298
00:19:12,880 --> 00:19:16,720
 For those of you who are new to the Water Loss Audit -- I know we typically talk about

299
00:19:16,720 --> 00:19:21,600
 this once a year, but that's a long time between reports -- it's essentially a formula.

300
00:19:21,600 --> 00:19:25,200
 We look at where all of our water goes, and we try to fill out this formula.

301
00:19:25,200 --> 00:19:29,840
 We have our authorized water consumption, apparent losses, real losses, and that should

302
00:19:29,840 --> 00:19:32,880
 add up to total water supplied.

303
00:19:32,880 --> 00:19:38,920
 The crux of this are these two in the middle, apparent losses and real losses, which we'll

304
00:19:38,920 --> 00:19:42,080
 define here in a few slides.

305
00:19:42,080 --> 00:19:48,640
 The bigger picture, aside from this simpler formula, is more like this.

306
00:19:48,640 --> 00:19:52,500
 If you look from left to right, we're looking at where our water comes from and where it

307
00:19:52,500 --> 00:19:53,500
 goes.

308
00:19:53,500 --> 00:19:59,080
 I'll say real quick that these arrows, these shapes, are not exactly sized with the volumes.

309
00:19:59,080 --> 00:20:00,760
 They're made to be readable.

310
00:20:00,760 --> 00:20:04,400
 But if you go from left to right, you can see we start with the water produced.

311
00:20:04,400 --> 00:20:07,840
 This is drinking water that's treated at our two water production plants and pumped out

312
00:20:07,840 --> 00:20:09,320
 into our system.

313
00:20:09,320 --> 00:20:14,320
 We have this gray area at the top, a little bit that's exported for use by Crum and Sanger.

314
00:20:14,320 --> 00:20:16,000
 The rest is supplied to Denton.

315
00:20:16,000 --> 00:20:20,000
 You can see the vast majority of the rest is authorized consumption that is billed to

316
00:20:20,000 --> 00:20:22,120
 our customers.

317
00:20:22,120 --> 00:20:25,160
 So aside from these, we try to identify the rest.

318
00:20:25,160 --> 00:20:28,400
 What is our unbilled authorized volumes?

319
00:20:28,400 --> 00:20:32,380
 That's primarily fire protection and system operations.

320
00:20:32,380 --> 00:20:38,740
 And then we have our water loss category that's split into apparent losses and real losses.

321
00:20:38,740 --> 00:20:41,760
 So I'll start defining those terms for you.

322
00:20:41,760 --> 00:20:46,940
 Real loss, water loss through distribution system leakage and excessive pressure.

323
00:20:46,940 --> 00:20:50,800
 This is called real loss because it is water that is actually lost out of the pipes.

324
00:20:50,800 --> 00:20:55,300
 We treat it, we pump it out, but it does not reach its destination.

325
00:20:55,300 --> 00:21:00,160
 So this can be our main breaks that we actually discover and we repair.

326
00:21:00,160 --> 00:21:04,120
 This can be undiscovered leakage, that small leakage through the pipes that just hasn't

327
00:21:04,120 --> 00:21:06,240
 been found yet.

328
00:21:06,240 --> 00:21:10,480
 This could be background leakage, which is essentially if you've ever done home plumbing

329
00:21:10,480 --> 00:21:14,080
 and have a fitting that just won't stop dripping, that's what background leakage is.

330
00:21:14,080 --> 00:21:19,480
 So across our 600 or so miles of main, we do have a little bit of a dripping pipe.

331
00:21:19,480 --> 00:21:23,340
 And then this is also the catchall category, that when we go through the work of identifying

332
00:21:23,340 --> 00:21:27,560
 where all of our water goes, there's going to be some leftover and we have to assume

333
00:21:27,560 --> 00:21:31,960
 that as some form of real loss.

334
00:21:31,960 --> 00:21:41,480
 In 2019, we had total real loss of 607 million gallons or about 9.4% of our total production.

335
00:21:41,480 --> 00:21:46,080
 So we see this as an indicator of our system health, our physical system health.

336
00:21:46,080 --> 00:21:48,780
 We want to minimize that within economic reason.

337
00:21:48,780 --> 00:21:53,520
 We have some financial figures for you later to help put that into perspective.

338
00:21:53,520 --> 00:21:59,480
 And we price out those real losses at the marginal cost of water acquisition and treatment.

339
00:21:59,480 --> 00:22:04,400
 The vast, vast majority of our cost in water utilities are fixed costs.

340
00:22:04,400 --> 00:22:09,400
 So we filter out the marginal cost and see what those additional gallons actually cost

341
00:22:09,400 --> 00:22:13,000
 us.

342
00:22:13,000 --> 00:22:15,340
 We also look at our apparent losses.

343
00:22:15,340 --> 00:22:20,840
 This one's a little fuzzier of a definition, but it's water that was not read accurately

344
00:22:20,840 --> 00:22:24,640
 by a meter or was not read by a meter at all.

345
00:22:24,640 --> 00:22:28,740
 Our biggest contributor to this is water meter inaccuracy.

346
00:22:28,740 --> 00:22:33,840
 We have about 35 to 40,000 meters out in the city.

347
00:22:33,840 --> 00:22:39,480
 And unfortunately, the day those meters are placed, they start to slowly lose accuracy.

348
00:22:39,480 --> 00:22:45,960
 So on average, our meters are about 97 to 98% accurate.

349
00:22:45,960 --> 00:22:48,120
 And we look at trying to estimate what's the rest of that.

350
00:22:48,120 --> 00:22:49,500
 We know a certain amount of that water.

351
00:22:49,500 --> 00:22:52,640
 What's the amount that's not being read through those meters?

352
00:22:52,640 --> 00:22:58,000
 This also includes a little bit of consideration for unauthorized consumptions.

353
00:22:58,000 --> 00:23:01,600
 Once in a while, we find people who have attempted to bypass our metering system.

354
00:23:01,600 --> 00:23:06,080
 Of course, we correct those as they happen and we try to estimate how much of our water

355
00:23:06,080 --> 00:23:07,880
 was used in those times.

356
00:23:07,880 --> 00:23:11,040
 And occasionally, we have systematic data errors that is handled through our billing

357
00:23:11,040 --> 00:23:16,920
 system and we account for those here as well.

358
00:23:16,920 --> 00:23:20,660
 So these apparent losses are indicators of fiscal health.

359
00:23:20,660 --> 00:23:22,760
 It's not a physical health issue like the real losses.

360
00:23:22,760 --> 00:23:24,760
 It's not leakage through a pipe.

361
00:23:24,760 --> 00:23:26,820
 This is uncollected revenue.

362
00:23:26,820 --> 00:23:31,840
 So inaccurate meters in theft reduce our revenue and we price out these volumes at the retail

363
00:23:31,840 --> 00:23:33,340
 volume cost of water.

364
00:23:33,340 --> 00:23:38,200
 So what would we have recovered if that water had gone through a meter?

365
00:23:38,200 --> 00:23:44,600
 And in 2019, we calculate those volumes as 197 million gallons or about 3% of our total

366
00:23:44,600 --> 00:23:48,340
 water production.

367
00:23:48,340 --> 00:23:54,040
 And to define one more category here before we get back to the figures, our unbilled authorized

368
00:23:54,040 --> 00:23:58,980
 is two components primarily, fire protection and system operation.

369
00:23:58,980 --> 00:24:01,040
 So fire protection is an unbilled service.

370
00:24:01,040 --> 00:24:05,440
 We do not meter or bill water used for fire protection.

371
00:24:05,440 --> 00:24:08,120
 Some of that use is for fire sprinkler systems.

372
00:24:08,120 --> 00:24:12,560
 So any commercial property you go to, you can probably look up and see fire sprinklers

373
00:24:12,560 --> 00:24:13,560
 in the ceiling.

374
00:24:13,560 --> 00:24:14,960
 Those don't pass through our meter.

375
00:24:14,960 --> 00:24:19,240
 So if the systems are activated, we don't bill for that water, but it is authorized

376
00:24:19,240 --> 00:24:20,920
 use.

377
00:24:20,920 --> 00:24:23,080
 And then the same for fire engine use.

378
00:24:23,080 --> 00:24:27,660
 Any water that passes through an apparatus for the fire department is unbilled.

379
00:24:27,660 --> 00:24:33,920
 That includes both fire response for actually putting out fires and training time on the

380
00:24:33,920 --> 00:24:36,240
 engines.

381
00:24:36,240 --> 00:24:41,920
 The system operations category includes several things that we do here in water utilities.

382
00:24:41,920 --> 00:24:45,280
 One of the biggest is cleaning new pipes after installation.

383
00:24:45,280 --> 00:24:51,480
 If you've ever seen a water line construction site, you'll see a stack of blue PVC sitting

384
00:24:51,480 --> 00:24:52,760
 on the ground.

385
00:24:52,760 --> 00:24:55,680
 And you can imagine if that's been sitting up for a few weeks, you probably don't want

386
00:24:55,680 --> 00:24:56,820
 to drink out of it.

387
00:24:56,820 --> 00:25:00,760
 So part of our procedure when we install those pipes is we load them with chlorine to kill

388
00:25:00,760 --> 00:25:03,960
 out any undesirable material in that pipe.

389
00:25:03,960 --> 00:25:07,580
 And then we flush a lot of water through that pipe and we flush it until it's drinking water

390
00:25:07,580 --> 00:25:08,580
 quality.

391
00:25:08,580 --> 00:25:12,040
 So there's a lot of volume that goes through that to ensure those new pipes are clean enough

392
00:25:12,040 --> 00:25:14,120
 to drink out of.

393
00:25:14,120 --> 00:25:19,020
 We also have water used for removing old water from low flow pipes.

394
00:25:19,020 --> 00:25:22,300
 These are areas where we know we don't get a lot of water circulation.

395
00:25:22,300 --> 00:25:26,700
 So to prevent that water from getting stagnant in the pipes, we flush the water out and let

396
00:25:26,700 --> 00:25:28,400
 the new water come in.

397
00:25:28,400 --> 00:25:32,240
 That tends to be a pretty big user of water for operations.

398
00:25:32,240 --> 00:25:35,920
 And then we have kind of a grab bag of other operational usage.

399
00:25:35,920 --> 00:25:40,000
 We have flow rate testing to validate that what we're putting in the ground is the right

400
00:25:40,000 --> 00:25:41,000
 size.

401
00:25:41,000 --> 00:25:45,440
 We have water quality sampling and a handful of other things.

402
00:25:45,440 --> 00:25:51,460
 So to come back to the graphic from slide three, we filled in the volumes here.

403
00:25:51,460 --> 00:25:56,760
 So you can see on the far left side, we produced $6,476,000,000.

404
00:25:56,760 --> 00:25:59,140
 These numbers are in million gallons.

405
00:25:59,140 --> 00:26:02,800
 This is for the full year fiscal 2019.

406
00:26:02,800 --> 00:26:05,520
 We exported $76,000,000.

407
00:26:05,520 --> 00:26:08,320
 We billed $5.5 billion gallons.

408
00:26:08,320 --> 00:26:12,240
 And you can see toward the bottom right of your screen where we've accounted for our

409
00:26:12,240 --> 00:26:16,360
 unbilled authorized consumptions and our losses.

410
00:26:16,360 --> 00:26:21,560
 So for instance, we used about $77,000,000 gallons in 2019 for various system operations

411
00:26:21,560 --> 00:26:26,160
 to keep the distribution system clean and healthy.

412
00:26:26,160 --> 00:26:30,880
 Our $197,000,000 gallons of apparent losses, the biggest category, meter inaccuracy was

413
00:26:30,880 --> 00:26:33,180
 $176,000,000 of that.

414
00:26:33,180 --> 00:26:35,000
 And then we get down to our real losses.

415
00:26:35,000 --> 00:26:39,800
 Out of $607,000,000 gallons, $40,000,000 was accounted for in main breaks, which I'm

416
00:26:39,800 --> 00:26:43,720
 going to get into the details a few slides down the road here on that.

417
00:26:43,720 --> 00:26:48,560
 And then after all the work we put into this, we had $567,000,000 that was not accounted

418
00:26:48,560 --> 00:26:55,160
 for in any of our known uses of water, so that's our unaccounted for real losses.

419
00:26:55,160 --> 00:27:03,200
 And looking at the fiscal side of this, real losses, we said were $607,000,000 gallons

420
00:27:03,200 --> 00:27:07,160
 of our total real losses for fiscal 2019.

421
00:27:07,160 --> 00:27:10,380
 The cost of that is $209,000.

422
00:27:10,380 --> 00:27:14,680
 We priced that out again at the variable cost of treating water, so per thousand gallons

423
00:27:14,680 --> 00:27:16,520
 that's only $0.35.

424
00:27:16,520 --> 00:27:22,280
 Again, the vast majority of our costs and water utilities are fixed costs, either capital

425
00:27:22,280 --> 00:27:26,120
 or staff that's used for maintenance or operations.

426
00:27:26,120 --> 00:27:29,100
 Treating an additional thousand gallons of water just isn't very expensive.

427
00:27:29,100 --> 00:27:34,560
 So while the volumes are higher, the cost is actually much lower than our apparent losses.

428
00:27:34,560 --> 00:27:39,740
 In the future, we don't know exactly how far a decade or two down the road, we're looking

429
00:27:39,740 --> 00:27:44,800
 at when we may use our water supply rights that we have.

430
00:27:44,800 --> 00:27:48,520
 And at that point, those costs would go up because we would be buying water from Dallas.

431
00:27:48,520 --> 00:27:53,960
 So in the future, those variable costs could go higher than that $0.35.

432
00:27:53,960 --> 00:27:58,320
 The apparent losses, again, the volumes are about a third of our real losses at 197 million

433
00:27:58,320 --> 00:28:02,840
 gallons, but the cost is much higher, $947,000.

434
00:28:02,840 --> 00:28:05,640
 That's because we priced this at the average retail cost of water.

435
00:28:05,640 --> 00:28:10,080
 Again, we look at apparent losses as unrecovered revenue.

436
00:28:10,080 --> 00:28:16,480
 In 2019, our average volume cost of water was $4.80 per thousand.

437
00:28:16,480 --> 00:28:21,160
 You can compare this to our rate book, we consider all of our different rates, our block

438
00:28:21,160 --> 00:28:24,480
 rates and everything, we average those out for the year.

439
00:28:24,480 --> 00:28:29,880
 So 480 includes both our base rate of $4.15 and all the way up through our commercial

440
00:28:29,880 --> 00:28:33,660
 irrigation rates and our residential block rates.

441
00:28:33,660 --> 00:28:39,300
 This cost of apparent loss is offset by our proactive meter replacement and calibration

442
00:28:39,300 --> 00:28:40,480
 program.

443
00:28:40,480 --> 00:28:44,880
 So if you've heard any of our presentations that we replace our small residential meters

444
00:28:44,880 --> 00:28:49,060
 on a 13-year cycle, this is where we get that number.

445
00:28:49,060 --> 00:28:55,280
 So we look at what are we saving by replacing meters at a certain age and then what's the

446
00:28:55,280 --> 00:28:57,020
 cost of executing that program.

447
00:28:57,020 --> 00:29:01,880
 So $947,000 is the remaining cost after we've offset what we could through our meter replacement

448
00:29:01,880 --> 00:29:02,880
 program.

449
00:29:02,880 --> 00:29:03,880
 I have a question.

450
00:29:03,880 --> 00:29:04,880
 Yes, sir.

451
00:29:04,880 --> 00:29:11,480
 Under the real loss, I can't see that the second bullet point, cost of real loss will

452
00:29:11,480 --> 00:29:16,200
 increase in the future when Denton acquires and then I can't see what the rest is because

453
00:29:16,200 --> 00:29:17,200
 ...

454
00:29:17,200 --> 00:29:18,200
 Sure.

455
00:29:18,200 --> 00:29:23,520
 So that says cost of real loss will increase in the future when Denton acquires additions

456
00:29:23,520 --> 00:29:24,840
 to the water supply.

457
00:29:24,840 --> 00:29:25,840
 Okay.

458
00:29:25,840 --> 00:29:29,760
 And you mentioned that that could possibly be buying water from Dallas?

459
00:29:29,760 --> 00:29:30,760
 Yes.

460
00:29:30,760 --> 00:29:34,600
 So that's the long-term plan, currently all of our water rights are fixed costs.

461
00:29:34,600 --> 00:29:38,460
 We own all of the water in excess of what we use right now.

462
00:29:38,460 --> 00:29:42,320
 So whenever we get to the point that we are using all of those rights, then we will buy

463
00:29:42,320 --> 00:29:44,000
 water by the volume.

464
00:29:44,000 --> 00:29:48,320
 We will have a volume charge on that water if we buy additional water from Dallas.

465
00:29:48,320 --> 00:29:55,000
 So what are our ... I'm not familiar with what we already own in terms of water rights,

466
00:29:55,000 --> 00:29:56,000
 what we have.

467
00:29:56,000 --> 00:30:02,800
 Can you give me an idea of that, what it's like, is it lakes or creeks or ...

468
00:30:02,800 --> 00:30:07,520
 So our water rights right now come from Lake Louisville and Lake Ray Roberts.

469
00:30:07,520 --> 00:30:12,680
 We share both of those lakes with Dallas or a few other smaller water right holders.

470
00:30:12,680 --> 00:30:15,020
 Between the two, I'm going to look across the room to make sure I'm close.

471
00:30:15,020 --> 00:30:22,180
 We have a little over 20 million gallons per day, daily average throughout the year.

472
00:30:22,180 --> 00:30:23,960
 So that's plenty more than we're using now.

473
00:30:23,960 --> 00:30:28,800
 Right now we're about in the 17 million gallon per day average ballpark.

474
00:30:28,800 --> 00:30:33,840
 And then on top of that, we have recently about a year ago had an indirect reuse permit

475
00:30:33,840 --> 00:30:38,480
 approved through the TCEQ that gives us about 50% more than that.

476
00:30:38,480 --> 00:30:44,680
 So roughly when we max out our water rights, we'll be up to about 36 million gallons per

477
00:30:44,680 --> 00:30:47,920
 day on average throughout the year.

478
00:30:47,920 --> 00:30:52,360
 And I assume that this would be based upon continued development in our area.

479
00:30:52,360 --> 00:30:54,240
 Yes, sir.

480
00:30:54,240 --> 00:30:59,160
 And the water volume forecast, those presentations will include a lot of that information to

481
00:30:59,160 --> 00:31:03,560
 see where we stand in the long range and how long it'll take us to exceed that supply.

482
00:31:03,560 --> 00:31:04,560
 Okay.

483
00:31:04,560 --> 00:31:08,960
 Thank you very much.

484
00:31:08,960 --> 00:31:12,600
 All right.

485
00:31:12,600 --> 00:31:15,640
 So these are our water audit results.

486
00:31:15,640 --> 00:31:21,440
 We also benchmark these across the Texas Water Development Board's Regency Planning Group

487
00:31:21,440 --> 00:31:24,680
 to see how we compare to other utilities.

488
00:31:24,680 --> 00:31:28,880
 The points we benchmark against are real loss, which again are indicators of physical system

489
00:31:28,880 --> 00:31:34,600
 health, apparent losses, which are indicators of fiscal health, and then a value called

490
00:31:34,600 --> 00:31:40,720
 infrastructure leakage index, which this is a normalized value that helps us compare our

491
00:31:40,720 --> 00:31:45,840
 leakage rates to that of other utilities.

492
00:31:45,840 --> 00:31:49,400
 And in these charts, just some considerations for benchmarking.

493
00:31:49,400 --> 00:31:53,640
 We know that no two utilities are exactly equal, no two cities are laid out exactly

494
00:31:53,640 --> 00:31:55,160
 the same.

495
00:31:55,160 --> 00:31:58,960
 So we have some considerations that'll account for some of the variability between utilities,

496
00:31:58,960 --> 00:32:03,680
 but we look at across the board roughly where do we stand.

497
00:32:03,680 --> 00:32:10,960
 And these are normalized values, so it should account roughly for system size.

498
00:32:10,960 --> 00:32:16,400
 First we have real and apparent loss per connection across Regency, that's per water service connection.

499
00:32:16,400 --> 00:32:21,320
 To help you see Denton's number, it's marked right here just past the midpoint.

500
00:32:21,320 --> 00:32:26,320
 So you can see the broad range from Sardis, Lone Elm all the way on the left side to Dallas

501
00:32:26,320 --> 00:32:29,480
 Water Utilities on the right side.

502
00:32:29,480 --> 00:32:34,520
 We aim to stay somewhere in the middle, ideally a little bit ahead of the middle so that our

503
00:32:34,520 --> 00:32:40,880
 losses are generally better than the cities around us and still within reason from a fiscal

504
00:32:40,880 --> 00:32:45,520
 perspective.

505
00:32:45,520 --> 00:32:51,840
 We also have total losses per capita across Regency, again here's Denton's number.

506
00:32:51,840 --> 00:32:55,120
 And we get to move up to the left, which is a good thing, it's a little bit less losses,

507
00:32:55,120 --> 00:32:59,480
 a little bit tighter system when we look at a per capita perspective.

508
00:32:59,480 --> 00:33:04,760
 So in the large picture, we are a little bit ahead of the midpoint for the cities in our

509
00:33:04,760 --> 00:33:09,160
 region.

510
00:33:09,160 --> 00:33:13,720
 And before I show our last chart, this Infrastructure Leakage Index, just to give a better definition

511
00:33:13,720 --> 00:33:18,960
 here, it's an engineering calculation used to normalize our real losses.

512
00:33:18,960 --> 00:33:23,920
 We compare our identified real losses over a theoretical minimum leakage through an engineering

513
00:33:23,920 --> 00:33:24,920
 calculation.

514
00:33:24,920 --> 00:33:31,960
 Denton's for fiscal 2019 was 2.13 and here's how we compare to Regency.

515
00:33:31,960 --> 00:33:37,760
 Here's Denton's number, again ahead of midpoint to the left.

516
00:33:37,760 --> 00:33:43,200
 The color coding here we put in here is, this is important because there are recommended

517
00:33:43,200 --> 00:33:46,020
 target ranges for your ILI.

518
00:33:46,020 --> 00:33:51,040
 So if we start all the way on the right side in the purple, greater than 8 is not recommended

519
00:33:51,040 --> 00:33:53,240
 by the Water Development Board.

520
00:33:53,240 --> 00:34:01,720
 And then the orange, 5 to 8, this is where there is abundant water supply where your

521
00:34:01,720 --> 00:34:05,400
 organization is not sensitive to rate increases, rate increases are fine.

522
00:34:05,400 --> 00:34:09,340
 And as we start to move to the left is when you want a tighter and tighter system.

523
00:34:09,340 --> 00:34:16,000
 So the lowest recommended range for ILI is from 1 to 3 and we are well within that range

524
00:34:16,000 --> 00:34:23,200
 and actually have been since 2003 when we started the water audit and its current format.

525
00:34:23,200 --> 00:34:28,660
 And I'll touch on one more component of the audit itself before I get into the results

526
00:34:28,660 --> 00:34:33,040
 of the audit or the after effects of the audit.

527
00:34:33,040 --> 00:34:36,960
 The biggest improvement we've made in the last several years or one of the biggest improvements

528
00:34:36,960 --> 00:34:42,160
 is how we identify our water main breaks and account for those water losses.

529
00:34:42,160 --> 00:34:47,520
 If you remember from a few slides back we showed 40 million gallons in loss from main

530
00:34:47,520 --> 00:34:48,760
 breaks.

531
00:34:48,760 --> 00:34:52,660
 This is based on a new system where each main break is identified individually.

532
00:34:52,660 --> 00:34:57,280
 We look at the type of break, we look at the size of that break, length, width, diameter

533
00:34:57,280 --> 00:35:03,040
 of hole, the size of the pipe, and when necessary on larger breaks we use our hydraulic model

534
00:35:03,040 --> 00:35:06,800
 to better calculate how much water came out of each individual break.

535
00:35:06,800 --> 00:35:09,080
 We were not doing this in prior years.

536
00:35:09,080 --> 00:35:11,540
 We were assuming every main break was created equal.

537
00:35:11,540 --> 00:35:12,960
 They all flowed at the same rate.

538
00:35:12,960 --> 00:35:18,120
 They all flowed for the same amount of time and in 2018 compared to our 40 million gallons

539
00:35:18,120 --> 00:35:24,000
 of main break water loss identified in 2019, in 2018 we only identified 3 million gallons.

540
00:35:24,000 --> 00:35:28,840
 There was no significant difference in the number of breaks or even the types of breaks.

541
00:35:28,840 --> 00:35:33,880
 So we count that difference going from 3 million to 40 million gallons.

542
00:35:33,880 --> 00:35:37,720
 That's based on us better identifying what is actually coming out of our system.

543
00:35:37,720 --> 00:35:42,800
 So for example we can look at the pictures of this main break and by estimating the size

544
00:35:42,800 --> 00:35:47,600
 of this break we can say this is about 1.5 million gallons on its own.

545
00:35:47,600 --> 00:35:52,240
 So by better identifying the water coming out of these breaks we have a tighter audit

546
00:35:52,240 --> 00:35:59,040
 and we have a better understanding of where all of our water goes once it's treated.

547
00:35:59,040 --> 00:36:00,840
 So implementation steps.

548
00:36:00,840 --> 00:36:01,840
 This is important here.

549
00:36:01,840 --> 00:36:06,600
 We don't want to do this audit just as a regulatory requirement or just as a formality.

550
00:36:06,600 --> 00:36:09,560
 We want this to have an impact on our organization.

551
00:36:09,560 --> 00:36:12,120
 We want to use these results to continually improve.

552
00:36:12,120 --> 00:36:15,240
 So some of our implementation steps.

553
00:36:15,240 --> 00:36:18,160
 The first three, you can see the check marks, these are things we've been doing for some

554
00:36:18,160 --> 00:36:19,960
 amount of time.

555
00:36:19,960 --> 00:36:23,120
 Our media replacement program, we want to continue that.

556
00:36:23,120 --> 00:36:25,880
 That offsets those very expensive apparent losses.

557
00:36:25,880 --> 00:36:27,120
 We want to continue that as is.

558
00:36:27,120 --> 00:36:31,880
 We don't have any recommended changes to that program this year.

559
00:36:31,880 --> 00:36:34,720
 We also want to continue our leak detection program.

560
00:36:34,720 --> 00:36:40,440
 We purchased some new leak detection equipment about a year ago last June and that's helped

561
00:36:40,440 --> 00:36:44,520
 us identify some leaks better and we want to continue to use that to offset our real

562
00:36:44,520 --> 00:36:46,000
 losses.

563
00:36:46,000 --> 00:36:49,720
 And then we want to continue to use our improved main break water loss estimates that we saw

564
00:36:49,720 --> 00:36:52,960
 on the previous side to keep that tighter audit.

565
00:36:52,960 --> 00:36:57,720
 A couple of new items, we want to improve our volume estimates for new line flushing.

566
00:36:57,720 --> 00:37:01,920
 Again, that's part of our operational use to make sure our newly installed water mains

567
00:37:01,920 --> 00:37:04,520
 are drinking water clean.

568
00:37:04,520 --> 00:37:09,380
 Those tend to be tough to measure based on how much water comes out of them and how many

569
00:37:09,380 --> 00:37:11,120
 connections we tend to flush through.

570
00:37:11,120 --> 00:37:14,040
 It's hard to put metering points on all those.

571
00:37:14,040 --> 00:37:17,820
 We're looking through some ideas to better capture that information.

572
00:37:17,820 --> 00:37:24,160
 We expect that we may show an increase in water volumes once we implement a more accurate

573
00:37:24,160 --> 00:37:31,000
 tool for this that will shift some of our volume calculations from real losses up to

574
00:37:31,000 --> 00:37:32,000
 operational.

575
00:37:32,000 --> 00:37:35,960
 And if we can consider those approved, then that will show better real losses and a more

576
00:37:35,960 --> 00:37:38,960
 realistic picture of our system.

577
00:37:38,960 --> 00:37:43,700
 And finally, we want to create and implement mass balance worksheets for our two water

578
00:37:43,700 --> 00:37:45,600
 production plants.

579
00:37:45,600 --> 00:37:48,600
 This helps with the metering from the water production plants.

580
00:37:48,600 --> 00:37:54,480
 And this is critical because meters of that size, when they go out of calibration, they

581
00:37:54,480 --> 00:37:58,400
 tend to overestimate water rather than underestimate water.

582
00:37:58,400 --> 00:38:01,880
 And when we overestimate water coming from our plants and can't account for anywhere

583
00:38:01,880 --> 00:38:05,840
 else on our system, we assume those are losses on the backside.

584
00:38:05,840 --> 00:38:10,160
 So again, to have a clearer picture of what our system looks like and where our water

585
00:38:10,160 --> 00:38:15,200
 goes, a mass balance worksheet would help us better account for the water within the plants

586
00:38:15,200 --> 00:38:19,440
 and the water leaving the plants.

587
00:38:19,440 --> 00:38:23,240
 And at this time, I'll take any questions or comments.

588
00:38:23,240 --> 00:38:28,320
 Does anyone have a – oh, go ahead, Russ.

589
00:38:28,320 --> 00:38:35,400
 I have a question about what kind of technology are you using for your leak detection, what

590
00:38:35,400 --> 00:38:39,840
 you've used in the past, you're using now, and what you anticipate using?

591
00:38:39,840 --> 00:38:40,840
 Sure.

592
00:38:40,840 --> 00:38:46,080
 Our new system, it's from a company called Gutterman, it's called ZoneScan.

593
00:38:46,080 --> 00:38:52,320
 We have correlating loggers and leak correlators essentially send acoustic signals through the

594
00:38:52,320 --> 00:38:58,400
 pipe wall, and they find abnormalities in those signals to identify where there is a

595
00:38:58,400 --> 00:39:01,720
 break in that pipe wall.

596
00:39:01,720 --> 00:39:04,400
 The new technology we have is a set of 10 loggers.

597
00:39:04,400 --> 00:39:06,520
 It's actually deployed overnight.

598
00:39:06,520 --> 00:39:13,560
 Our older technology did use correlators, but we had to go on site, and spot by spot

599
00:39:13,560 --> 00:39:20,680
 we had to be on site to collect all the information and to set up and run the equipment.

600
00:39:20,680 --> 00:39:24,320
 These instead, we deploy them overnight, we come back the next morning and we collect

601
00:39:24,320 --> 00:39:26,120
 all that data.

602
00:39:26,120 --> 00:39:32,480
 Those loggers will run four increments, about 15 minutes apart, of these acoustic signals,

603
00:39:32,480 --> 00:39:36,560
 and they run in the middle of the night, where since they're listening, they're looking

604
00:39:36,560 --> 00:39:38,040
 for low traffic hours.

605
00:39:38,040 --> 00:39:41,960
 Typically, they're set to run 2 a.m. when the roads are the quietest, and it gets the

606
00:39:41,960 --> 00:39:46,040
 best signal, and it runs four rounds of this and gives us the result.

607
00:39:46,040 --> 00:39:47,040
 Okay.

608
00:39:47,040 --> 00:39:48,040
 Thank you.

609
00:39:48,040 --> 00:39:49,040
 Go ahead, Ed.

610
00:39:49,040 --> 00:40:02,360
 Yeah, I was just curious, is there any audit or report done on water savings through conservation

611
00:40:02,360 --> 00:40:04,120
 methods in the city?

612
00:40:04,120 --> 00:40:09,160
 Do you work with the sustainability department on anything like that?

613
00:40:09,160 --> 00:40:10,800
 We do.

614
00:40:10,800 --> 00:40:14,680
 Sustainability does the more hands-on work with that, but we do have a water conservation

615
00:40:14,680 --> 00:40:19,440
 plan that's updated every five years, also through the Texas Water Development Board.

616
00:40:19,440 --> 00:40:24,520
 A year ago, we had the updates to that report approved through council, and we have annual

617
00:40:24,520 --> 00:40:26,280
 reports on estimates to that.

618
00:40:26,280 --> 00:40:31,480
 Would it be possible to receive the latest version of that report?

619
00:40:31,480 --> 00:40:32,720
 Yes, sir.

620
00:40:32,720 --> 00:40:36,680
 It's actually on the water utilities website.

621
00:40:36,680 --> 00:40:37,680
 Okay.

622
00:40:37,680 --> 00:40:42,320
 I'm sure we can get a copy to the board, though.

623
00:40:42,320 --> 00:40:47,000
 And along with that, I wondered if there were any thought in the future, with all the development

624
00:40:47,000 --> 00:40:56,720
 that's coming in, that the water department could be proactive in promoting less water-intensive

625
00:40:56,720 --> 00:41:05,080
 landscaping, giving ideas for xeriscapes, things like that, that would cut back on what

626
00:41:05,080 --> 00:41:10,600
 will probably become a scarcer and scarcer resource.

627
00:41:10,600 --> 00:41:19,560
 I didn't know if there was anything in pipeline, no pun intended, regarding possible guidelines

628
00:41:19,560 --> 00:41:22,800
 for that, or if that would go through the development, folks.

629
00:41:22,800 --> 00:41:27,040
 But just curious, has any thought been given to that?

630
00:41:27,040 --> 00:41:28,040
 Sure.

631
00:41:28,040 --> 00:41:33,440
 Again, our sustainability department does run programs for that.

632
00:41:33,440 --> 00:41:38,640
 They have a lot of educational and outreach programs about things like xeriscaping, specifically,

633
00:41:38,640 --> 00:41:41,460
 and native landscaping practices.

634
00:41:41,460 --> 00:41:46,000
 I don't know of any requirements going to developments.

635
00:41:46,000 --> 00:41:52,120
 Yeah, I'm told those could be in the Denton Development Code, but that's not currently

636
00:41:52,120 --> 00:41:54,000
 addressed as part of it.

637
00:41:54,000 --> 00:41:55,000
 Okay, thanks.

638
00:41:55,000 --> 00:41:59,800
 And thanks for that report.

639
00:41:59,800 --> 00:42:01,800
 Anyone else?

640
00:42:01,800 --> 00:42:02,880
 Barbara?

641
00:42:02,880 --> 00:42:03,880
 No?

642
00:42:03,880 --> 00:42:04,880
 Good.

643
00:42:04,880 --> 00:42:08,120
 All right.

644
00:42:08,120 --> 00:42:13,320
 I guess then, Larry, do we need to adjourn to go into closed session so that we don't

645
00:42:13,320 --> 00:42:16,800
 need to come back in?

646
00:42:16,800 --> 00:42:17,800
 Yes, please.

647
00:42:17,800 --> 00:42:18,800
 Okay.

648
00:42:18,800 --> 00:42:21,800
 And you want me to read what we're going into closed session for?

649
00:42:21,800 --> 00:42:22,800
 Okay.

650
00:42:22,800 --> 00:42:23,800
 All right.

651
00:42:23,800 --> 00:42:31,560
 "Deliberate regarding real property under Texas Government Code Section 551.072, consultation

652
00:42:31,560 --> 00:42:38,040
 with attorneys under Texas Government Code Section 551.071, discuss, deliberate, receive

653
00:42:38,040 --> 00:42:42,640
 information from staff, and provide staff with direction pertaining to the potential

654
00:42:42,640 --> 00:42:48,520
 purchase of real property located southeast of the corner of Thomas J. Egan Road and Jim

655
00:42:48,520 --> 00:42:55,200
 Crystal Road in Denton, Denton County, Texas, where the deliberation of the same in an open

656
00:42:55,200 --> 00:43:00,560
 meeting would have a detrimental effect on the position of the government body in negotiations

657
00:43:00,560 --> 00:43:06,080
 with the third party or potential litigation, consultation with the city's attorneys regarding

658
00:43:06,080 --> 00:43:11,040
 legal issues associated with the potential claims against the city associated with the

659
00:43:11,040 --> 00:43:16,000
 property where the public discussion of these legal matters could conflict with the duty

660
00:43:16,000 --> 00:43:21,800
 of the city attorneys to the City of Denton and the Denton City Council under Texas disciplinary

661
00:43:21,800 --> 00:43:28,320
 rules of professional conduct, the state bar of taxes, or would jeopardize the city's legal

662
00:43:28,320 --> 00:43:31,040
 position in negotiation of potential litigation."

663
00:43:31,040 --> 00:43:34,960
 So before we go into closed session, do we have a motion to adjourn?

664
00:43:34,960 --> 00:43:36,960
 So moved.

665
00:43:36,960 --> 00:43:37,960
 Second?

666
00:43:37,960 --> 00:43:38,960
 I second.

667
00:43:38,960 --> 00:43:39,960
 Okay.

668
00:43:39,960 --> 00:43:40,960
 We are adjourned.

669
00:43:40,960 --> 00:43:41,960
 I'm going into closed.

670
00:43:41,960 --> 00:43:51,960
 [BLANK_AUDIO]