WEBVTT

00:00:00.000 --> 00:00:09.860
 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.

00:01:03.720 --> 00:01:09.040
 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.

00:02:12.240 --> 00:02:13.240
 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.

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?

00:06:07.400 --> 00:06:09.920
 Yeah.

00:06:09.920 --> 00:06:12.720
 My mute button seems to be going on and off.

00:06:12.720 --> 00:06:15.720
 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.

00:07:17.720 --> 00:07:18.720
 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.

00:07:46.920 --> 00:07:51.600
 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.

00:09:51.200 --> 00:09:57.440
 Could you go back to a couple of slides?

00:09:57.440 --> 00:10:02.960
 Yeah, right there.

00:10:02.960 --> 00:10:09.400
 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?

00:10:16.440 --> 00:10:17.440
 No.

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 Okay.

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

00:10:24.520 --> 00:10:25.520
 Yes sir.

00:10:25.520 --> 00:10:26.520
 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.

00:11:07.960 --> 00:11:08.960
 Okay.

00:11:08.960 --> 00:11:13.000
 Thank you.

00:11:13.000 --> 00:11:16.720
 Any other questions?

00:11:16.720 --> 00:11:17.720
 Billy?

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

00:11:26.160 --> 00:11:31.320
 Was there different designs offered by different people or was it all just the one design?

00:11:31.320 --> 00:11:33.960
 No, we specified the design.

00:11:33.960 --> 00:11:39.080
 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.

00:11:50.980 --> 00:11:53.480
 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.

00:12:02.440 --> 00:12:05.840
 It happens though, I get it.

00:12:05.840 --> 00:12:07.720
 Maybe they needed to work.

00:12:07.720 --> 00:12:08.720
 Yeah.

00:12:08.720 --> 00:12:09.720
 Okay.

00:12:09.720 --> 00:12:10.720
 That's good.

00:12:10.720 --> 00:12:11.720
 Thank you.

00:12:11.720 --> 00:12:12.720
 And Russ?

00:12:12.720 --> 00:12:13.720
 Go ahead, Russ.

00:12:13.720 --> 00:12:17.820
 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

00:12:57.920 --> 00:13:03.960
 sure that we're trying to get the best value for our ratepayers.

00:13:03.960 --> 00:13:09.280
 Barbara, you're muted.

00:13:09.280 --> 00:13:12.280
 Did you have a question?

00:13:12.280 --> 00:13:13.840
 Okay.

00:13:13.840 --> 00:13:15.720
 It shows that I'm muted.

00:13:15.720 --> 00:13:18.600
 Oh, you're muted again, Barbara.

00:13:18.600 --> 00:13:19.840
 Okay.

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?

00:13:32.480 --> 00:13:37.400
 Yeah, it's very similar, very similar.

00:13:37.400 --> 00:13:40.920
 Thank you.

00:13:40.920 --> 00:13:41.920
 Any others?

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 All right.

00:13:42.920 --> 00:13:45.680
 Do we have a motion to approve item B?

00:13:45.680 --> 00:13:46.680
 Approve.

00:13:46.680 --> 00:13:47.680
 Move.

00:13:47.680 --> 00:13:53.160
 In a second, I guess we have many approving.

00:13:53.160 --> 00:13:54.160
 Second?

00:13:54.160 --> 00:13:55.160
 I second.

00:13:55.160 --> 00:13:58.320
 Okay.

00:13:58.320 --> 00:14:00.240
 All in favor say aye.

00:14:00.240 --> 00:14:01.240
 Aye.

00:14:01.240 --> 00:14:02.240
 Okay.

00:14:02.240 --> 00:14:03.240
 Opposed?

00:14:03.240 --> 00:14:05.280
 Motion carries.

00:14:05.280 --> 00:14:10.420
 Management update.

00:14:10.420 --> 00:14:12.960
 Madam Chair, members of the board, good morning.

00:14:12.960 --> 00:14:14.000
 Not a whole lot to say.

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

00:14:21.680 --> 00:14:22.680
 electric.

00:14:22.680 --> 00:14:23.680
 It's attached.

00:14:23.680 --> 00:14:24.680
 It's quite lengthy.

00:14:24.680 --> 00:14:29.880
 We do have on the line, Ken Banks, if you have any questions specific to that.

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

00:14:34.920 --> 00:14:41.320
 discussions over the coming weeks, so we'll get back on schedule with those items.

00:14:41.320 --> 00:14:45.720
 And then on the new business action items that we'll be bringing forward at your next

00:14:45.720 --> 00:14:48.480
 meeting, the environmental purchasing policy.

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

00:14:54.040 --> 00:14:57.880
 this month we'll be meeting on our regular schedule twice a month, so we'll get back

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 on track.

00:14:58.880 --> 00:15:02.420
 Thank you, Mario.

00:15:02.420 --> 00:15:03.420
 Concluding items.

00:15:03.420 --> 00:15:05.320
 Does any board member -- oh, go ahead, Ed.

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

00:15:12.380 --> 00:15:17.280
 and they probably got lost in the shuffle with what's been happening with COVID.

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

00:15:27.680 --> 00:15:35.080
 what percentage of our current city fleet is hybrid or EV electric.

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

00:15:41.840 --> 00:15:50.200
 and the percentage of current hybrid and EV in the fleet, I'd appreciate it.

00:15:50.200 --> 00:15:51.200
 Thank you.

00:15:51.200 --> 00:15:52.200
 Yes, sir, will do.

00:15:52.200 --> 00:15:53.200
 Thank you.

00:15:53.200 --> 00:16:01.400
 I have a question, maybe just a comment, about the management study.

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

00:16:05.880 --> 00:16:11.660
 to think about and respond when it comes time to make their budget presentation.

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

00:16:20.800 --> 00:16:30.080
 number by each year, the number of capital -- approved capital dollars for projects that

00:16:30.080 --> 00:16:37.980
 were not spent, and that number grew over the last three or four years.

00:16:37.980 --> 00:16:46.080
 So if I'm understanding this right, we're -- the city is approving more capital expenditures

00:16:46.080 --> 00:16:51.600
 than the respective utility is able to accomplish.

00:16:51.600 --> 00:16:57.180
 And I wonder is -- what I wonder is, what's being done to address that?

00:16:57.180 --> 00:17:00.040
 Are we getting further behind?

00:17:00.040 --> 00:17:02.200
 Is any of that going to be made up?

00:17:02.200 --> 00:17:03.760
 Are we -- what are we letting go?

00:17:03.760 --> 00:17:07.640
 What are we left -- what's being left undone that should be done?

00:17:07.640 --> 00:17:12.180
 That's the nature of my question.

00:17:12.180 --> 00:17:14.840
 We can certainly cover that in a bunch of discussions.

00:17:14.840 --> 00:17:15.840
 Okay.

00:17:15.840 --> 00:17:20.680
 Yes, Karen, go ahead.

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

00:17:27.000 --> 00:17:30.480
 curious about the status of the landfill expansion.

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

00:17:36.640 --> 00:17:43.080
 the January 13th meeting that council was receiving a report, and we would receive information

00:17:43.080 --> 00:17:49.080
 later, and I'm not remembering hearing about it, although I might have slept.

00:17:49.080 --> 00:17:50.080
 Correct.

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

00:17:53.520 --> 00:17:54.520
 report.

00:17:54.520 --> 00:17:58.960
 But we were on track prior to COVID to have those public meetings earlier this spring.

00:17:58.960 --> 00:18:01.960
 All those were postponed until later in June.

00:18:01.960 --> 00:18:04.000
 So we'll give you an update on that.

00:18:04.000 --> 00:18:07.840
 We provided council with an informal staff report; we can resurrect that and send it

00:18:07.840 --> 00:18:08.840
 to the PUB.

00:18:08.840 --> 00:18:09.840
 All right.

00:18:09.840 --> 00:18:10.840
 Thanks, Mario.

00:18:10.840 --> 00:18:11.840
 You bet.

00:18:11.840 --> 00:18:12.840
 All right.

00:18:12.840 --> 00:18:17.640
 So did we do concluding items?

00:18:17.640 --> 00:18:18.640
 I'm sorry.

00:18:18.640 --> 00:18:21.780
 This virtual is -- gets me a little off.

00:18:21.780 --> 00:18:24.680
 Any concluding items from the board?

00:18:24.680 --> 00:18:31.360
 Something you want added to the agenda or -- okay.

00:18:31.360 --> 00:18:32.360
 I guess not.

00:18:32.360 --> 00:18:34.920
 Then we'll go into work sessions.

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

00:18:39.520 --> 00:18:40.520
 Report.

00:18:40.520 --> 00:18:45.800
 Good morning, board members.

00:18:45.800 --> 00:18:47.080
 This is Tyler Dawson.

00:18:47.080 --> 00:18:48.360
 I'm with Water Utilities.

00:18:48.360 --> 00:18:55.240
 I'm the manager of asset management.

00:18:55.240 --> 00:18:58.680
 And I have a report for you here on the Water Loss Audit for 2019.

00:18:58.680 --> 00:19:05.080
 This is a regulatory report that we do annually through the Texas Water Development Board.

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

00:19:09.340 --> 00:19:12.880
 of that report.

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

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.

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.

00:19:25.200 --> 00:19:29.840
 We have our authorized water consumption, apparent losses, real losses, and that should

00:19:29.840 --> 00:19:32.880
 add up to total water supplied.

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

00:19:38.920 --> 00:19:42.080
 define here in a few slides.

00:19:42.080 --> 00:19:48.640
 The bigger picture, aside from this simpler formula, is more like this.

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

00:19:52.500 --> 00:19:53.500
 goes.

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.

00:19:59.080 --> 00:20:00.760
 They're made to be readable.

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.

00:20:04.400 --> 00:20:07.840
 This is drinking water that's treated at our two water production plants and pumped out

00:20:07.840 --> 00:20:09.320
 into our system.

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.

00:20:14.320 --> 00:20:16.000
 The rest is supplied to Denton.

00:20:16.000 --> 00:20:20.000
 You can see the vast majority of the rest is authorized consumption that is billed to

00:20:20.000 --> 00:20:22.120
 our customers.

00:20:22.120 --> 00:20:25.160
 So aside from these, we try to identify the rest.

00:20:25.160 --> 00:20:28.400
 What is our unbilled authorized volumes?

00:20:28.400 --> 00:20:32.380
 That's primarily fire protection and system operations.

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.

00:20:38.740 --> 00:20:41.760
 So I'll start defining those terms for you.

00:20:41.760 --> 00:20:46.940
 Real loss, water loss through distribution system leakage and excessive pressure.

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.

00:20:50.800 --> 00:20:55.300
 We treat it, we pump it out, but it does not reach its destination.

00:20:55.300 --> 00:21:00.160
 So this can be our main breaks that we actually discover and we repair.

00:21:00.160 --> 00:21:04.120
 This can be undiscovered leakage, that small leakage through the pipes that just hasn't

00:21:04.120 --> 00:21:06.240
 been found yet.

00:21:06.240 --> 00:21:10.480
 This could be background leakage, which is essentially if you've ever done home plumbing

00:21:10.480 --> 00:21:14.080
 and have a fitting that just won't stop dripping, that's what background leakage is.

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.

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

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

00:21:27.560 --> 00:21:31.960
 that as some form of real loss.

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.

00:21:41.480 --> 00:21:46.080
 So we see this as an indicator of our system health, our physical system health.

00:21:46.080 --> 00:21:48.780
 We want to minimize that within economic reason.

00:21:48.780 --> 00:21:53.520
 We have some financial figures for you later to help put that into perspective.

00:21:53.520 --> 00:21:59.480
 And we price out those real losses at the marginal cost of water acquisition and treatment.

00:21:59.480 --> 00:22:04.400
 The vast, vast majority of our cost in water utilities are fixed costs.

00:22:04.400 --> 00:22:09.400
 So we filter out the marginal cost and see what those additional gallons actually cost

00:22:09.400 --> 00:22:13.000
 us.

00:22:13.000 --> 00:22:15.340
 We also look at our apparent losses.

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

00:22:20.840 --> 00:22:24.640
 by a meter or was not read by a meter at all.

00:22:24.640 --> 00:22:28.740
 Our biggest contributor to this is water meter inaccuracy.

00:22:28.740 --> 00:22:33.840
 We have about 35 to 40,000 meters out in the city.

00:22:33.840 --> 00:22:39.480
 And unfortunately, the day those meters are placed, they start to slowly lose accuracy.

00:22:39.480 --> 00:22:45.960
 So on average, our meters are about 97 to 98% accurate.

00:22:45.960 --> 00:22:48.120
 And we look at trying to estimate what's the rest of that.

00:22:48.120 --> 00:22:49.500
 We know a certain amount of that water.

00:22:49.500 --> 00:22:52.640
 What's the amount that's not being read through those meters?

00:22:52.640 --> 00:22:58.000
 This also includes a little bit of consideration for unauthorized consumptions.

00:22:58.000 --> 00:23:01.600
 Once in a while, we find people who have attempted to bypass our metering system.

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

00:23:06.080 --> 00:23:07.880
 was used in those times.

00:23:07.880 --> 00:23:11.040
 And occasionally, we have systematic data errors that is handled through our billing

00:23:11.040 --> 00:23:16.920
 system and we account for those here as well.

00:23:16.920 --> 00:23:20.660
 So these apparent losses are indicators of fiscal health.

00:23:20.660 --> 00:23:22.760
 It's not a physical health issue like the real losses.

00:23:22.760 --> 00:23:24.760
 It's not leakage through a pipe.

00:23:24.760 --> 00:23:26.820
 This is uncollected revenue.

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

00:23:31.840 --> 00:23:33.340
 volume cost of water.

00:23:33.340 --> 00:23:38.200
 So what would we have recovered if that water had gone through a meter?

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

00:23:44.600 --> 00:23:48.340
 water production.

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

00:23:54.040 --> 00:23:58.980
 is two components primarily, fire protection and system operation.

00:23:58.980 --> 00:24:01.040
 So fire protection is an unbilled service.

00:24:01.040 --> 00:24:05.440
 We do not meter or bill water used for fire protection.

00:24:05.440 --> 00:24:08.120
 Some of that use is for fire sprinkler systems.

00:24:08.120 --> 00:24:12.560
 So any commercial property you go to, you can probably look up and see fire sprinklers

00:24:12.560 --> 00:24:13.560
 in the ceiling.

00:24:13.560 --> 00:24:14.960
 Those don't pass through our meter.

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

00:24:19.240 --> 00:24:20.920
 use.

00:24:20.920 --> 00:24:23.080
 And then the same for fire engine use.

00:24:23.080 --> 00:24:27.660
 Any water that passes through an apparatus for the fire department is unbilled.

00:24:27.660 --> 00:24:33.920
 That includes both fire response for actually putting out fires and training time on the

00:24:33.920 --> 00:24:36.240
 engines.

00:24:36.240 --> 00:24:41.920
 The system operations category includes several things that we do here in water utilities.

00:24:41.920 --> 00:24:45.280
 One of the biggest is cleaning new pipes after installation.

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

00:24:51.480 --> 00:24:52.760
 on the ground.

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

00:24:55.680 --> 00:24:56.820
 to drink out of it.

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

00:25:00.760 --> 00:25:03.960
 out any undesirable material in that pipe.

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

00:25:07.580 --> 00:25:08.580
 quality.

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

00:25:12.040 --> 00:25:14.120
 to drink out of.

00:25:14.120 --> 00:25:19.020
 We also have water used for removing old water from low flow pipes.

00:25:19.020 --> 00:25:22.300
 These are areas where we know we don't get a lot of water circulation.

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

00:25:26.700 --> 00:25:28.400
 the new water come in.

00:25:28.400 --> 00:25:32.240
 That tends to be a pretty big user of water for operations.

00:25:32.240 --> 00:25:35.920
 And then we have kind of a grab bag of other operational usage.

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

00:25:40.000 --> 00:25:41.000
 size.

00:25:41.000 --> 00:25:45.440
 We have water quality sampling and a handful of other things.

00:25:45.440 --> 00:25:51.460
 So to come back to the graphic from slide three, we filled in the volumes here.

00:25:51.460 --> 00:25:56.760
 So you can see on the far left side, we produced $6,476,000,000.

00:25:56.760 --> 00:25:59.140
 These numbers are in million gallons.

00:25:59.140 --> 00:26:02.800
 This is for the full year fiscal 2019.

00:26:02.800 --> 00:26:05.520
 We exported $76,000,000.

00:26:05.520 --> 00:26:08.320
 We billed $5.5 billion gallons.

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

00:26:12.240 --> 00:26:16.360
 unbilled authorized consumptions and our losses.

00:26:16.360 --> 00:26:21.560
 So for instance, we used about $77,000,000 gallons in 2019 for various system operations

00:26:21.560 --> 00:26:26.160
 to keep the distribution system clean and healthy.

00:26:26.160 --> 00:26:30.880
 Our $197,000,000 gallons of apparent losses, the biggest category, meter inaccuracy was

00:26:30.880 --> 00:26:33.180
 $176,000,000 of that.

00:26:33.180 --> 00:26:35.000
 And then we get down to our real losses.

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

00:26:39.800 --> 00:26:43.720
 going to get into the details a few slides down the road here on that.

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

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.

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

00:27:03.200 --> 00:27:07.160
 of our total real losses for fiscal 2019.

00:27:07.160 --> 00:27:10.380
 The cost of that is $209,000.

00:27:10.380 --> 00:27:14.680
 We priced that out again at the variable cost of treating water, so per thousand gallons

00:27:14.680 --> 00:27:16.520
 that's only $0.35.

00:27:16.520 --> 00:27:22.280
 Again, the vast majority of our costs and water utilities are fixed costs, either capital

00:27:22.280 --> 00:27:26.120
 or staff that's used for maintenance or operations.

00:27:26.120 --> 00:27:29.100
 Treating an additional thousand gallons of water just isn't very expensive.

00:27:29.100 --> 00:27:34.560
 So while the volumes are higher, the cost is actually much lower than our apparent losses.

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

00:27:39.740 --> 00:27:44.800
 at when we may use our water supply rights that we have.

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.

00:27:48.520 --> 00:27:53.960
 So in the future, those variable costs could go higher than that $0.35.

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

00:27:58.320 --> 00:28:02.840
 gallons, but the cost is much higher, $947,000.

00:28:02.840 --> 00:28:05.640
 That's because we priced this at the average retail cost of water.

00:28:05.640 --> 00:28:10.080
 Again, we look at apparent losses as unrecovered revenue.

00:28:10.080 --> 00:28:16.480
 In 2019, our average volume cost of water was $4.80 per thousand.

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

00:28:21.160 --> 00:28:24.480
 rates and everything, we average those out for the year.

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

00:28:29.880 --> 00:28:33.660
 irrigation rates and our residential block rates.

00:28:33.660 --> 00:28:39.300
 This cost of apparent loss is offset by our proactive meter replacement and calibration

00:28:39.300 --> 00:28:40.480
 program.

00:28:40.480 --> 00:28:44.880
 So if you've heard any of our presentations that we replace our small residential meters

00:28:44.880 --> 00:28:49.060
 on a 13-year cycle, this is where we get that number.

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

00:28:55.280 --> 00:28:57.020
 cost of executing that program.

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

00:29:01.880 --> 00:29:02.880
 program.

00:29:02.880 --> 00:29:03.880
 I have a question.

00:29:03.880 --> 00:29:04.880
 Yes, sir.

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

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

00:29:16.200 --> 00:29:17.200
 ...

00:29:17.200 --> 00:29:18.200
 Sure.

00:29:18.200 --> 00:29:23.520
 So that says cost of real loss will increase in the future when Denton acquires additions

00:29:23.520 --> 00:29:24.840
 to the water supply.

00:29:24.840 --> 00:29:25.840
 Okay.

00:29:25.840 --> 00:29:29.760
 And you mentioned that that could possibly be buying water from Dallas?

00:29:29.760 --> 00:29:30.760
 Yes.

00:29:30.760 --> 00:29:34.600
 So that's the long-term plan, currently all of our water rights are fixed costs.

00:29:34.600 --> 00:29:38.460
 We own all of the water in excess of what we use right now.

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

00:29:42.320 --> 00:29:44.000
 water by the volume.

00:29:44.000 --> 00:29:48.320
 We will have a volume charge on that water if we buy additional water from Dallas.

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,

00:29:55.000 --> 00:29:56.000
 what we have.

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 ...

00:30:02.800 --> 00:30:07.520
 So our water rights right now come from Lake Louisville and Lake Ray Roberts.

00:30:07.520 --> 00:30:12.680
 We share both of those lakes with Dallas or a few other smaller water right holders.

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.

00:30:15.020 --> 00:30:22.180
 We have a little over 20 million gallons per day, daily average throughout the year.

00:30:22.180 --> 00:30:23.960
 So that's plenty more than we're using now.

00:30:23.960 --> 00:30:28.800
 Right now we're about in the 17 million gallon per day average ballpark.

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

00:30:33.840 --> 00:30:38.480
 approved through the TCEQ that gives us about 50% more than that.

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

00:30:44.680 --> 00:30:47.920
 day on average throughout the year.

00:30:47.920 --> 00:30:52.360
 And I assume that this would be based upon continued development in our area.

00:30:52.360 --> 00:30:54.240
 Yes, sir.

00:30:54.240 --> 00:30:59.160
 And the water volume forecast, those presentations will include a lot of that information to

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.

00:31:03.560 --> 00:31:04.560
 Okay.

00:31:04.560 --> 00:31:08.960
 Thank you very much.

00:31:08.960 --> 00:31:12.600
 All right.

00:31:12.600 --> 00:31:15.640
 So these are our water audit results.

00:31:15.640 --> 00:31:21.440
 We also benchmark these across the Texas Water Development Board's Regency Planning Group

00:31:21.440 --> 00:31:24.680
 to see how we compare to other utilities.

00:31:24.680 --> 00:31:28.880
 The points we benchmark against are real loss, which again are indicators of physical system

00:31:28.880 --> 00:31:34.600
 health, apparent losses, which are indicators of fiscal health, and then a value called

00:31:34.600 --> 00:31:40.720
 infrastructure leakage index, which this is a normalized value that helps us compare our

00:31:40.720 --> 00:31:45.840
 leakage rates to that of other utilities.

00:31:45.840 --> 00:31:49.400
 And in these charts, just some considerations for benchmarking.

00:31:49.400 --> 00:31:53.640
 We know that no two utilities are exactly equal, no two cities are laid out exactly

00:31:53.640 --> 00:31:55.160
 the same.

00:31:55.160 --> 00:31:58.960
 So we have some considerations that'll account for some of the variability between utilities,

00:31:58.960 --> 00:32:03.680
 but we look at across the board roughly where do we stand.

00:32:03.680 --> 00:32:10.960
 And these are normalized values, so it should account roughly for system size.

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.

00:32:16.400 --> 00:32:21.320
 To help you see Denton's number, it's marked right here just past the midpoint.

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

00:32:26.320 --> 00:32:29.480
 Water Utilities on the right side.

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

00:32:34.520 --> 00:32:40.880
 losses are generally better than the cities around us and still within reason from a fiscal

00:32:40.880 --> 00:32:45.520
 perspective.

00:32:45.520 --> 00:32:51.840
 We also have total losses per capita across Regency, again here's Denton's number.

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,

00:32:55.120 --> 00:32:59.480
 a little bit tighter system when we look at a per capita perspective.

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

00:33:04.760 --> 00:33:09.160
 region.

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

00:33:13.720 --> 00:33:18.960
 here, it's an engineering calculation used to normalize our real losses.

00:33:18.960 --> 00:33:23.920
 We compare our identified real losses over a theoretical minimum leakage through an engineering

00:33:23.920 --> 00:33:24.920
 calculation.

00:33:24.920 --> 00:33:31.960
 Denton's for fiscal 2019 was 2.13 and here's how we compare to Regency.

00:33:31.960 --> 00:33:37.760
 Here's Denton's number, again ahead of midpoint to the left.

00:33:37.760 --> 00:33:43.200
 The color coding here we put in here is, this is important because there are recommended

00:33:43.200 --> 00:33:46.020
 target ranges for your ILI.

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

00:33:51.040 --> 00:33:53.240
 by the Water Development Board.

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

00:34:01.720 --> 00:34:05.400
 organization is not sensitive to rate increases, rate increases are fine.

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.

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

00:34:16.000 --> 00:34:23.200
 and actually have been since 2003 when we started the water audit and its current format.

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

00:34:28.660 --> 00:34:33.040
 of the audit or the after effects of the audit.

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

00:34:36.960 --> 00:34:42.160
 is how we identify our water main breaks and account for those water losses.

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

00:34:47.520 --> 00:34:48.760
 breaks.

00:34:48.760 --> 00:34:52.660
 This is based on a new system where each main break is identified individually.

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

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

00:35:03.040 --> 00:35:06.800
 to better calculate how much water came out of each individual break.

00:35:06.800 --> 00:35:09.080
 We were not doing this in prior years.

00:35:09.080 --> 00:35:11.540
 We were assuming every main break was created equal.

00:35:11.540 --> 00:35:12.960
 They all flowed at the same rate.

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

00:35:18.120 --> 00:35:24.000
 of main break water loss identified in 2019, in 2018 we only identified 3 million gallons.

00:35:24.000 --> 00:35:28.840
 There was no significant difference in the number of breaks or even the types of breaks.

00:35:28.840 --> 00:35:33.880
 So we count that difference going from 3 million to 40 million gallons.

00:35:33.880 --> 00:35:37.720
 That's based on us better identifying what is actually coming out of our system.

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

00:35:42.800 --> 00:35:47.600
 of this break we can say this is about 1.5 million gallons on its own.

00:35:47.600 --> 00:35:52.240
 So by better identifying the water coming out of these breaks we have a tighter audit

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.

00:35:59.040 --> 00:36:00.840
 So implementation steps.

00:36:00.840 --> 00:36:01.840
 This is important here.

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.

00:36:06.600 --> 00:36:09.560
 We want this to have an impact on our organization.

00:36:09.560 --> 00:36:12.120
 We want to use these results to continually improve.

00:36:12.120 --> 00:36:15.240
 So some of our implementation steps.

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

00:36:18.160 --> 00:36:19.960
 amount of time.

00:36:19.960 --> 00:36:23.120
 Our media replacement program, we want to continue that.

00:36:23.120 --> 00:36:25.880
 That offsets those very expensive apparent losses.

00:36:25.880 --> 00:36:27.120
 We want to continue that as is.

00:36:27.120 --> 00:36:31.880
 We don't have any recommended changes to that program this year.

00:36:31.880 --> 00:36:34.720
 We also want to continue our leak detection program.

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

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

00:36:44.520 --> 00:36:46.000
 losses.

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

00:36:49.720 --> 00:36:52.960
 on the previous side to keep that tighter audit.

00:36:52.960 --> 00:36:57.720
 A couple of new items, we want to improve our volume estimates for new line flushing.

00:36:57.720 --> 00:37:01.920
 Again, that's part of our operational use to make sure our newly installed water mains

00:37:01.920 --> 00:37:04.520
 are drinking water clean.

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

00:37:09.380 --> 00:37:11.120
 connections we tend to flush through.

00:37:11.120 --> 00:37:14.040
 It's hard to put metering points on all those.

00:37:14.040 --> 00:37:17.820
 We're looking through some ideas to better capture that information.

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

00:37:24.160 --> 00:37:31.000
 tool for this that will shift some of our volume calculations from real losses up to

00:37:31.000 --> 00:37:32.000
 operational.

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

00:37:35.960 --> 00:37:38.960
 realistic picture of our system.

00:37:38.960 --> 00:37:43.700
 And finally, we want to create and implement mass balance worksheets for our two water

00:37:43.700 --> 00:37:45.600
 production plants.

00:37:45.600 --> 00:37:48.600
 This helps with the metering from the water production plants.

00:37:48.600 --> 00:37:54.480
 And this is critical because meters of that size, when they go out of calibration, they

00:37:54.480 --> 00:37:58.400
 tend to overestimate water rather than underestimate water.

00:37:58.400 --> 00:38:01.880
 And when we overestimate water coming from our plants and can't account for anywhere

00:38:01.880 --> 00:38:05.840
 else on our system, we assume those are losses on the backside.

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

00:38:10.160 --> 00:38:15.200
 goes, a mass balance worksheet would help us better account for the water within the plants

00:38:15.200 --> 00:38:19.440
 and the water leaving the plants.

00:38:19.440 --> 00:38:23.240
 And at this time, I'll take any questions or comments.

00:38:23.240 --> 00:38:28.320
 Does anyone have a – oh, go ahead, Russ.

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

00:38:35.400 --> 00:38:39.840
 you've used in the past, you're using now, and what you anticipate using?

00:38:39.840 --> 00:38:40.840
 Sure.

00:38:40.840 --> 00:38:46.080
 Our new system, it's from a company called Gutterman, it's called ZoneScan.

00:38:46.080 --> 00:38:52.320
 We have correlating loggers and leak correlators essentially send acoustic signals through the

00:38:52.320 --> 00:38:58.400
 pipe wall, and they find abnormalities in those signals to identify where there is a

00:38:58.400 --> 00:39:01.720
 break in that pipe wall.

00:39:01.720 --> 00:39:04.400
 The new technology we have is a set of 10 loggers.

00:39:04.400 --> 00:39:06.520
 It's actually deployed overnight.

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

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.

00:39:20.680 --> 00:39:24.320
 These instead, we deploy them overnight, we come back the next morning and we collect

00:39:24.320 --> 00:39:26.120
 all that data.

00:39:26.120 --> 00:39:32.480
 Those loggers will run four increments, about 15 minutes apart, of these acoustic signals,

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

00:39:36.560 --> 00:39:38.040
 for low traffic hours.

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

00:39:41.960 --> 00:39:46.040
 best signal, and it runs four rounds of this and gives us the result.

00:39:46.040 --> 00:39:47.040
 Okay.

00:39:47.040 --> 00:39:48.040
 Thank you.

00:39:48.040 --> 00:39:49.040
 Go ahead, Ed.

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

00:40:02.360 --> 00:40:04.120
 methods in the city?

00:40:04.120 --> 00:40:09.160
 Do you work with the sustainability department on anything like that?

00:40:09.160 --> 00:40:10.800
 We do.

00:40:10.800 --> 00:40:14.680
 Sustainability does the more hands-on work with that, but we do have a water conservation

00:40:14.680 --> 00:40:19.440
 plan that's updated every five years, also through the Texas Water Development Board.

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

00:40:24.520 --> 00:40:26.280
 reports on estimates to that.

00:40:26.280 --> 00:40:31.480
 Would it be possible to receive the latest version of that report?

00:40:31.480 --> 00:40:32.720
 Yes, sir.

00:40:32.720 --> 00:40:36.680
 It's actually on the water utilities website.

00:40:36.680 --> 00:40:37.680
 Okay.

00:40:37.680 --> 00:40:42.320
 I'm sure we can get a copy to the board, though.

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

00:40:47.000 --> 00:40:56.720
 that's coming in, that the water department could be proactive in promoting less water-intensive

00:40:56.720 --> 00:41:05.080
 landscaping, giving ideas for xeriscapes, things like that, that would cut back on what

00:41:05.080 --> 00:41:10.600
 will probably become a scarcer and scarcer resource.

00:41:10.600 --> 00:41:19.560
 I didn't know if there was anything in pipeline, no pun intended, regarding possible guidelines

00:41:19.560 --> 00:41:22.800
 for that, or if that would go through the development, folks.

00:41:22.800 --> 00:41:27.040
 But just curious, has any thought been given to that?

00:41:27.040 --> 00:41:28.040
 Sure.

00:41:28.040 --> 00:41:33.440
 Again, our sustainability department does run programs for that.

00:41:33.440 --> 00:41:38.640
 They have a lot of educational and outreach programs about things like xeriscaping, specifically,

00:41:38.640 --> 00:41:41.460
 and native landscaping practices.

00:41:41.460 --> 00:41:46.000
 I don't know of any requirements going to developments.

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

00:41:52.120 --> 00:41:54.000
 addressed as part of it.

00:41:54.000 --> 00:41:55.000
 Okay, thanks.

00:41:55.000 --> 00:41:59.800
 And thanks for that report.

00:41:59.800 --> 00:42:01.800
 Anyone else?

00:42:01.800 --> 00:42:02.880
 Barbara?

00:42:02.880 --> 00:42:03.880
 No?

00:42:03.880 --> 00:42:04.880
 Good.

00:42:04.880 --> 00:42:08.120
 All right.

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

00:42:13.320 --> 00:42:16.800
 need to come back in?

00:42:16.800 --> 00:42:17.800
 Yes, please.

00:42:17.800 --> 00:42:18.800
 Okay.

00:42:18.800 --> 00:42:21.800
 And you want me to read what we're going into closed session for?

00:42:21.800 --> 00:42:22.800
 Okay.

00:42:22.800 --> 00:42:23.800
 All right.

00:42:23.800 --> 00:42:31.560
 "Deliberate regarding real property under Texas Government Code Section 551.072, consultation

00:42:31.560 --> 00:42:38.040
 with attorneys under Texas Government Code Section 551.071, discuss, deliberate, receive

00:42:38.040 --> 00:42:42.640
 information from staff, and provide staff with direction pertaining to the potential

00:42:42.640 --> 00:42:48.520
 purchase of real property located southeast of the corner of Thomas J. Egan Road and Jim

00:42:48.520 --> 00:42:55.200
 Crystal Road in Denton, Denton County, Texas, where the deliberation of the same in an open

00:42:55.200 --> 00:43:00.560
 meeting would have a detrimental effect on the position of the government body in negotiations

00:43:00.560 --> 00:43:06.080
 with the third party or potential litigation, consultation with the city's attorneys regarding

00:43:06.080 --> 00:43:11.040
 legal issues associated with the potential claims against the city associated with the

00:43:11.040 --> 00:43:16.000
 property where the public discussion of these legal matters could conflict with the duty

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

00:43:21.800 --> 00:43:28.320
 rules of professional conduct, the state bar of taxes, or would jeopardize the city's legal

00:43:28.320 --> 00:43:31.040
 position in negotiation of potential litigation."

00:43:31.040 --> 00:43:34.960
 So before we go into closed session, do we have a motion to adjourn?

00:43:34.960 --> 00:43:36.960
 So moved.

00:43:36.960 --> 00:43:37.960
 Second?

00:43:37.960 --> 00:43:38.960
 I second.

00:43:38.960 --> 00:43:39.960
 Okay.

00:43:39.960 --> 00:43:40.960
 We are adjourned.

00:43:40.960 --> 00:43:41.960
 I'm going into closed.

00:43:41.960 --> 00:43:51.960
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