WEBVTT 00:00:00.000 --> 00:00:09.040 Good morning. We do have a quorum, so we'll call to order the Public Utilities Board for 00:00:09.040 --> 00:00:18.600 Monday, July 13th, 2020. The first item on the agenda is the Consent Agenda, items A 00:00:18.600 --> 00:00:24.240 through D. Does any board member wish to pull an item? 00:00:24.240 --> 00:00:36.480 Yes, I'd like to pull item A. Any other items? Okay, do we have approval, have a motion to 00:00:36.480 --> 00:00:46.040 approve items B, C, and D? So moved. Second. All in favor say aye. Aye. Opposed? Motion 00:00:46.040 --> 00:00:57.240 carries. Okay, item A. One question I had was there's no cost shown after fiscal year 00:00:57.240 --> 00:01:10.360 2024. I wondered what the reason for that was. Mr. Baffert, I believe Tony Puente is on the 00:01:10.360 --> 00:01:16.840 line and should be able to provide a little more details on that item. Or Terry Nolte. 00:01:16.840 --> 00:01:25.880 Yeah, this is Terry Nolte. Can you hear me? Yes. Good morning, PUB, Terry Nolte, Assistant 00:01:25.880 --> 00:01:39.680 General Manager. So the current plan for decommissioning of a givens plant without the sale includes 00:01:39.680 --> 00:01:48.640 all items would be completed on the capital side by 2024. And so we've got capital costs 00:01:48.640 --> 00:01:57.760 that go out through 2024, after which time there will be operating costs to monitor the 00:01:57.760 --> 00:02:05.640 groundwater systems and the pumping and wastewater treatment systems. Right now in the budget 00:02:05.640 --> 00:02:14.160 that you're seeing, we're only showing capital costs, which under the no sale scenario total 00:02:14.160 --> 00:02:29.400 about $88 million of total decommissioning costs. So basically, Chair, we've got to be 00:02:29.400 --> 00:02:40.360 prepared for all alternatives here, right? Yes, until and if the plant is sold, we're 00:02:40.360 --> 00:02:48.360 operating under the premise that we have to remediate the facility completely and decommission 00:02:48.360 --> 00:02:55.520 the powerhouse. There are EPA regulations, the coal combustion residual regulations that 00:02:55.520 --> 00:03:01.880 mandate what activities we have to take with respect to the impoundments and landfills 00:03:01.880 --> 00:03:14.400 at the facility. I have a question. I think Mr. Baffert is on mute still if you're asking 00:03:14.400 --> 00:03:22.520 a question. Okay. Oh, yeah, I have a question. And this does or does not include the mine. 00:03:22.520 --> 00:03:30.320 That mine is totally separate issue. Is that right? That is correct. The mine is not part 00:03:30.320 --> 00:03:39.600 of the $88 million of capital investments. Okay. That's already in the budget, correct, 00:03:39.600 --> 00:03:48.360 Terry? I'm sorry? That's already in the budget, correct, Terry? Yes. The ongoing operating 00:03:48.360 --> 00:03:56.320 costs for the mine are in the budget. And the mine property itself, ultimately, the 00:03:56.320 --> 00:04:03.440 plan that the board has is to sell the mine property. So the only reason we're looking 00:04:03.440 --> 00:04:11.880 at this is because it exceeds a 20% increase. Is that true? Yes, sir. Under the joint operating 00:04:11.880 --> 00:04:18.480 agreement with the other members, any year on year increase is above 20%. It requires 00:04:18.480 --> 00:04:24.520 each of the cities to approve. So the reason that the increase is 20% or greater is because 00:04:24.520 --> 00:04:31.080 for the last couple of years, the only investment, only operating costs that we've had is a skeleton 00:04:31.080 --> 00:04:38.200 staff and some engineering work associated with this decommissioning study. As we start 00:04:38.200 --> 00:04:46.540 to actually expend dollars towards the decommissioning, it's causing the 20% threshold to be exceeded. 00:04:46.540 --> 00:04:58.800 Okay. And so the amount that Denton is responsible for is $231,000 plus per month. Is that right? 00:04:58.800 --> 00:05:03.520 I believe that's correct. Yeah. And that's in our budget. We've got that budget. Is that 00:05:03.520 --> 00:05:13.240 true? When we bring the fiscal year 2021 budget to you, I guess in a month or so, for approval, 00:05:13.240 --> 00:05:21.400 it will include all these costs associated with decommissioning. All right. Thank you. 00:05:21.400 --> 00:05:26.480 Did you have a question? Yeah, just a couple of things. So this, the total fiscal year 00:05:26.480 --> 00:05:39.940 2021-25 total of $93,387,430. Denton's part of that would be it's 21.3%. That's correct. 00:05:39.940 --> 00:05:52.400 So Denton's part then would be $19,891. Yes, sir. Okay. When was this fund established? 00:05:52.400 --> 00:05:57.520 The fund was established, and don't hold me to this specific date, but I believe it was 00:05:57.520 --> 00:06:08.680 in 2016. So it wasn't put into place as part of the initial agreement when the plan was 00:06:08.680 --> 00:06:13.960 first commissioned? That's correct. There was an addendum to the joint operating agreement, 00:06:13.960 --> 00:06:21.880 which was approved by all the members in 2016 that included these costs for decommissioning 00:06:21.880 --> 00:06:27.720 as the plant was shut down and decisions were being made to shut the plant down. This separate 00:06:27.720 --> 00:06:37.080 fund was set up. Okay. Thank you. One other question I think is under the budget increase 00:06:37.080 --> 00:06:43.720 on the agenda information sheet, it says in parentheses generation/decommissioning. What 00:06:43.720 --> 00:06:52.960 is generation? That refers to the generation facility itself. So there's decommissioning 00:06:52.960 --> 00:07:00.120 activities that include both the demolition and decommissioning of the powerhouse and 00:07:00.120 --> 00:07:10.480 all the associated equipment, scrubbers, coal handling. And then what's termed the CCR impoundment 00:07:10.480 --> 00:07:18.200 units, coal combustion residual units, which include two landfills and a ash pond and a 00:07:18.200 --> 00:07:30.880 scrubber sludge pond. Okay. And if I may, one more. If the plant is sold and it is brought 00:07:30.880 --> 00:07:43.120 back online by the purchaser, are there any further expenses or costs like for reconnection 00:07:43.120 --> 00:07:50.520 or things like that that TMPA will be responsible for? 00:07:50.520 --> 00:07:57.460 With all due respect, Mr. Self, we are under a nondisclosure agreement with the potential 00:07:57.460 --> 00:08:05.840 buyers. We're not allowed to discuss the conditions of that. You will be, to the extent a fully 00:08:05.840 --> 00:08:11.600 negotiated agreement is approved by the board of TMPA, it will come before this body for 00:08:11.600 --> 00:08:18.960 final approval. Okay. Thank you very much. Any other questions? 00:08:18.960 --> 00:08:27.720 All right. Do we have a motion to approve this item? Move. We approve. Second. All in 00:08:27.720 --> 00:08:38.240 favor say aye. Aye. Opposed? Motion carries. All right. Next item is consider approval 00:08:38.240 --> 00:08:48.680 of the minutes of June 22nd, 2020 with a motion to approve. I move we approve. Second. Okay. 00:08:48.680 --> 00:08:58.600 All in favor say aye. Aye. Opposed? All right. Management update. Mario, you're up. 00:08:58.600 --> 00:09:05.400 Yes. Good morning, board. How are you doing? In your packet, you have a memorandum from 00:09:05.400 --> 00:09:10.760 our excuse me, informal staff report from Ethan Cox regarding our clean fleet program. 00:09:10.760 --> 00:09:14.880 That information should have been included at your last meeting but was inadvertently 00:09:14.880 --> 00:09:21.360 left off and so wanted to include the details of our program regarding those vehicles that 00:09:21.360 --> 00:09:28.960 are combustion versus electric and hybrid. I was hoping that I don't see anyone on the 00:09:28.960 --> 00:09:35.320 line from public works or from fleet but if you have some specific questions, I can try 00:09:35.320 --> 00:09:45.200 to answer those if you have any. And then in regards to the new business matrix in future 00:09:45.200 --> 00:09:51.400 board meeting items, we have a number of items going forward in the coming weeks regarding 00:09:51.400 --> 00:09:56.800 the budget. So it will be budget intensive at your next meeting at the end of July as 00:09:56.800 --> 00:10:01.560 we move towards into the new fiscal year. I believe there was something that was inadvertently 00:10:01.560 --> 00:10:08.800 left on the future business matrix, I'm sorry, for the board agendas about the Gibbons Creek. 00:10:08.800 --> 00:10:13.920 I believe that should be removed. That is not ready for board consideration at this 00:10:13.920 --> 00:10:19.480 point and we'll bring that when that is ready. As far as the new business items, there are 00:10:19.480 --> 00:10:24.360 a number of items that have been complete through the month of June. We provided the 00:10:24.360 --> 00:10:31.080 item as I just mentioned, the hybrid and electric report for today and we'll be coming forward 00:10:31.080 --> 00:10:38.480 to you at the next meeting to discuss the utility budgets, et cetera, et cetera. Any 00:10:38.480 --> 00:10:41.680 questions? Go ahead, Ed. 00:10:41.680 --> 00:10:50.840 Yeah, thank you for this extremely comprehensive review. I just had one question and that is 00:10:50.840 --> 00:10:58.280 on point 1.4, non-essential fleet activities, establishing a plan to modify non-essential 00:10:58.280 --> 00:11:04.600 fleet activities on high ozone days to reduce air quality impacts. That is indicated that 00:11:04.600 --> 00:11:11.160 they have started that, but there is a need to formulate a work plan with operating departments. 00:11:11.160 --> 00:11:17.120 I just wondered if it would be possible to be updated upon that initiative, seeing as 00:11:17.120 --> 00:11:22.480 how our days, our summers are going to get hotter and our ozone levels are going to be 00:11:22.480 --> 00:11:31.720 higher. I feel that this is a pretty important aspect of the clean vehicle fleet. I'd like 00:11:31.720 --> 00:11:38.200 to be kept updated on the progress of this work plan. 00:11:38.200 --> 00:11:44.560 Absolutely. Thank you. 00:11:44.560 --> 00:11:52.040 Other questions? Okay, that brings us to concluding items. Does any board member have anything 00:11:52.040 --> 00:11:59.040 they want to add to a future agenda or comments to make? Yes, go ahead, Billy. 00:11:59.040 --> 00:12:10.640 Okay. Mario, do you need to do a TMPA update in our next meeting? 00:12:10.640 --> 00:12:17.120 You know, I don't know. Let me check. I believe Tony is on the line. He may be able to provide 00:12:17.120 --> 00:12:23.080 information on that. Well, Tony, I'm suggesting that just because 00:12:23.080 --> 00:12:30.560 of the recent news and discussions in the media and in the public. 00:12:30.560 --> 00:12:37.840 Yeah, we can certainly get with TMPA and see what we could cover in public versus closed 00:12:37.840 --> 00:12:42.680 session and we'll go with the city attorney's office and get something on the schedule. 00:12:42.680 --> 00:12:48.400 Very good. Thank you. Yes, sir. 00:12:48.400 --> 00:12:55.320 All right. Anything else? Okay. Oh, yes, Barbara. 00:12:55.320 --> 00:13:00.000 Could we get an update on the lawsuit with the DME employees? 00:13:00.000 --> 00:13:04.280 I believe that's on the future agenda. Isn't it, Mario? 00:13:04.280 --> 00:13:09.600 Yes, ma'am. It sure is. It's on there for a future agenda. That will be something that 00:13:09.600 --> 00:13:13.880 will be coordinated to the city attorney's office. 00:13:13.880 --> 00:13:23.320 Thank you. Anything else? Okay. Do we have a motion to adjourn? 00:13:23.320 --> 00:13:28.440 So moved. All right. We are adjourned. 00:13:28.440 --> 00:13:29.440 Have a good day. Bye. 00:13:29.440 --> 00:13:30.440 Bye-bye. Bye-bye. 00:13:30.440 --> 00:13:30.440 Very well.