1 00:00:00,000 --> 00:00:03,160 - All right, Susan, you're on. 2 00:00:03,160 --> 00:00:06,640 - All right, it is nine o'clock on September 28th. 3 00:00:06,640 --> 00:00:08,540 We do have a virtual quorum. 4 00:00:08,540 --> 00:00:10,640 So we're called to order the City of Denton 5 00:00:10,640 --> 00:00:12,720 Public Utility Board meeting. 6 00:00:12,720 --> 00:00:15,680 The first item on the agenda is the consent agenda. 7 00:00:15,680 --> 00:00:18,600 Items A through C. 8 00:00:18,600 --> 00:00:21,600 Does any board member wish to pull any of the items? 9 00:00:21,600 --> 00:00:26,320 I do believe that's the first. 10 00:00:26,320 --> 00:00:30,560 Do we have a motion to approve items A through C 11 00:00:30,560 --> 00:00:32,160 on the consent agenda? 12 00:00:32,160 --> 00:00:34,680 - Approved, so moved. 13 00:00:34,680 --> 00:00:36,200 - Second. 14 00:00:36,200 --> 00:00:37,040 - Karen seconded. 15 00:00:37,040 --> 00:00:38,840 All in favor say aye. 16 00:00:38,840 --> 00:00:39,920 - Aye. 17 00:00:39,920 --> 00:00:40,880 - Opposed? 18 00:00:40,880 --> 00:00:42,600 Motion carries. 19 00:00:42,600 --> 00:00:45,680 Next item are items of individual consideration. 20 00:00:45,680 --> 00:00:50,040 Consider the approval of the September 14th, 2020 minutes. 21 00:00:50,040 --> 00:00:52,700 Does anyone have any changes or corrections? 22 00:00:55,360 --> 00:00:58,280 All right, do we have a motion to approve the minutes? 23 00:00:58,280 --> 00:00:59,960 - So moved. - So moved. 24 00:00:59,960 --> 00:01:00,800 - Second. 25 00:01:00,800 --> 00:01:02,680 - I think that was Karen and Charlie seconding. 26 00:01:02,680 --> 00:01:04,760 Okay, all in favor say aye. 27 00:01:04,760 --> 00:01:06,600 - Aye. 28 00:01:06,600 --> 00:01:07,960 - Okay, motion carries. 29 00:01:07,960 --> 00:01:10,520 Item B, consider recommendation and adoption 30 00:01:10,520 --> 00:01:13,560 of an ordinance of the City of Denton, Texas, 31 00:01:13,560 --> 00:01:15,320 a home rule municipal corporation, 32 00:01:15,320 --> 00:01:17,800 authorizing the approval of the second amendment 33 00:01:17,800 --> 00:01:20,320 to professional services agreement 34 00:01:20,320 --> 00:01:24,600 between the City of Denton and SGS Engineering LLC, 35 00:01:24,600 --> 00:01:27,280 amending the contract approved by the City Council 36 00:01:27,280 --> 00:01:30,720 on July 19th, 2011 in the not to exceed amount 37 00:01:30,720 --> 00:01:33,400 of $1,002,060. 38 00:01:33,400 --> 00:01:38,720 I'm not going to read the whole thing, 39 00:01:38,720 --> 00:01:41,480 but the new second amendment expenditure amount 40 00:01:41,480 --> 00:01:45,080 not to exceed 3.5 million with the total contract amount 41 00:01:45,080 --> 00:01:49,680 not to exceed $11,435,000. 42 00:01:49,680 --> 00:01:50,520 Go ahead. 43 00:01:55,600 --> 00:01:57,560 - Is there a presentation? 44 00:01:57,560 --> 00:02:00,480 - Yes, we have Jerry Fildler 45 00:02:00,480 --> 00:02:02,200 that's going to do a presentation. 46 00:02:02,200 --> 00:02:05,280 - You may be on mute. 47 00:02:05,280 --> 00:02:08,280 - Am I mute? 48 00:02:08,280 --> 00:02:09,520 - No. - No. 49 00:02:09,520 --> 00:02:11,480 - Jerry was on mute, the staff member. 50 00:02:11,480 --> 00:02:12,320 - Okay. 51 00:02:12,320 --> 00:02:18,880 - Presentation. 52 00:02:18,880 --> 00:02:20,920 - Looks better. 53 00:02:20,920 --> 00:02:23,680 - Oh, this one up here. 54 00:02:24,600 --> 00:02:25,440 - Okay. 55 00:02:25,440 --> 00:02:37,520 - I'm getting there. 56 00:02:37,520 --> 00:02:41,360 Well, good morning, Jerry Fildler. 57 00:02:41,360 --> 00:02:43,400 I am the division engineering manager 58 00:02:43,400 --> 00:02:45,000 for municipal electric. 59 00:02:45,000 --> 00:02:48,880 Today we're coming before the PUB 60 00:02:48,880 --> 00:02:51,000 to talk about a second amendment 61 00:02:51,000 --> 00:02:53,760 to the SGS engineering contract. 62 00:02:55,600 --> 00:02:58,240 To kind of go over a little bit of the information 63 00:02:58,240 --> 00:03:00,400 that they provide for us, 64 00:03:00,400 --> 00:03:03,520 some of the professional services SGS provides for us 65 00:03:03,520 --> 00:03:05,440 is they provide the engineered drawings 66 00:03:05,440 --> 00:03:08,920 for all of our substation and transmission line construction. 67 00:03:08,920 --> 00:03:11,640 This includes the structural steel, electrical design, 68 00:03:11,640 --> 00:03:13,520 grounding, and static protection, 69 00:03:13,520 --> 00:03:17,480 as well as the relay and system protection design. 70 00:03:17,480 --> 00:03:19,280 They also provide some construction 71 00:03:19,280 --> 00:03:21,440 inspection services for us. 72 00:03:21,440 --> 00:03:23,400 And again, some of these are ensure 73 00:03:23,400 --> 00:03:24,840 the construction meets the design 74 00:03:24,840 --> 00:03:27,200 and regulatory requirements 75 00:03:27,200 --> 00:03:30,040 and maintain the records of the daily weather 76 00:03:30,040 --> 00:03:31,680 and construction activities. 77 00:03:31,680 --> 00:03:38,040 A little bit of the scope of this project, 78 00:03:38,040 --> 00:03:40,240 as you can see from this next slide. 79 00:03:40,240 --> 00:03:42,760 Some of these are the items that we have proposed 80 00:03:42,760 --> 00:03:45,480 for SGS to perform for us. 81 00:03:45,480 --> 00:03:49,360 So the additional funds in the amount of $3,500,000 82 00:03:49,360 --> 00:03:52,320 will provide these services for CIP projects. 83 00:03:52,320 --> 00:03:55,440 For the substation structural and electrical designs, 84 00:03:55,440 --> 00:03:58,680 transmission line designs, protection system designs, 85 00:03:58,680 --> 00:04:01,840 and other engineering related support as required. 86 00:04:01,840 --> 00:04:04,000 And we've given you a list of the projects 87 00:04:04,000 --> 00:04:06,120 that we have identified for this contract. 88 00:04:06,120 --> 00:04:12,600 So at this time staff recommends approval 89 00:04:12,600 --> 00:04:16,960 of the amendment to the existing agreement with SGS 90 00:04:16,960 --> 00:04:20,920 in the amount of not to exceed a $3,500,000 91 00:04:20,920 --> 00:04:25,520 for a total contract value of $11,435,000. 92 00:04:25,520 --> 00:04:28,200 The contract will be structured as an hourly contract 93 00:04:28,200 --> 00:04:31,720 so that the charges for services rendered will be billed 94 00:04:31,720 --> 00:04:35,200 and there is no minimum amount guaranteed to the vendor, 95 00:04:35,200 --> 00:04:36,400 to the engineering firm. 96 00:04:36,400 --> 00:04:39,840 Have any questions? 97 00:04:39,840 --> 00:04:42,440 - Yes, I have a question. 98 00:04:42,440 --> 00:04:43,360 - Okay. 99 00:04:43,360 --> 00:04:48,360 - On this substation projects, what does RTU mean? 100 00:04:51,920 --> 00:04:54,400 - I'm having a brain seizure. 101 00:04:54,400 --> 00:04:56,520 Relay Terminal Unit. 102 00:04:56,520 --> 00:05:01,400 It's basically the communication, remote telemetry unit. 103 00:05:01,400 --> 00:05:03,320 Sorry, I'm getting it off out here. 104 00:05:03,320 --> 00:05:06,240 It is basically the thing that helps us communicate 105 00:05:06,240 --> 00:05:09,000 with the SCADA system between the head in office 106 00:05:09,000 --> 00:05:12,160 and the equipment out in the field. 107 00:05:12,160 --> 00:05:13,320 - Okay, thank you. 108 00:05:13,320 --> 00:05:15,360 - I have a question. 109 00:05:17,880 --> 00:05:21,360 It says in the agenda description for this item 110 00:05:21,360 --> 00:05:24,960 that the majority of work within transmission category 111 00:05:24,960 --> 00:05:29,840 will be recovered through the TCOS provisions. 112 00:05:29,840 --> 00:05:33,920 But in the presentation, it says all will be recovered. 113 00:05:33,920 --> 00:05:38,000 Those seem to be two contradictory statements, 114 00:05:38,000 --> 00:05:41,080 which will all of this be recovered 115 00:05:41,080 --> 00:05:43,520 or will only a portion of it be recovered? 116 00:05:43,520 --> 00:05:46,640 - The vast majority will be recovered. 117 00:05:46,640 --> 00:05:49,160 There may be some items once we get into the construction 118 00:05:49,160 --> 00:05:51,040 that aren't covered by TCOS, 119 00:05:51,040 --> 00:05:53,480 but for the vast majority of everything 120 00:05:53,480 --> 00:05:55,080 that we have associated with this contract 121 00:05:55,080 --> 00:05:57,120 should be recovered through TCOS. 122 00:05:57,120 --> 00:05:59,680 - Okay, and follow-up question to that is, 123 00:05:59,680 --> 00:06:04,600 how long does it actually take Denton to receive the money 124 00:06:04,600 --> 00:06:07,120 through the TCOS process? 125 00:06:07,120 --> 00:06:13,880 - About 18 months. 126 00:06:13,880 --> 00:06:16,800 A year and a half after we spend it, we get it back. 127 00:06:16,800 --> 00:06:18,240 That's correct? 128 00:06:18,240 --> 00:06:20,760 - Yes, sir, that's what I'm understanding. 129 00:06:20,760 --> 00:06:22,120 - Okay. 130 00:06:22,120 --> 00:06:25,120 - Yeah, Mr. Baffert, one of the things that I'll mention 131 00:06:25,120 --> 00:06:29,320 is that we've historically filed an interim filing 132 00:06:29,320 --> 00:06:32,760 for those recoveries on an annual basis. 133 00:06:32,760 --> 00:06:34,080 Because of some recent changes, 134 00:06:34,080 --> 00:06:36,840 we're now going to buy annual filing. 135 00:06:36,840 --> 00:06:40,720 So we think that that timeframe may be a little shortened. 136 00:06:42,240 --> 00:06:45,320 - Okay, just out of curiosity, how does this, Tony, 137 00:06:45,320 --> 00:06:49,200 how does this work into your budget planning 138 00:06:49,200 --> 00:06:50,720 from year to year? 139 00:06:50,720 --> 00:06:55,720 - Well, we certainly assume a growth projection 140 00:06:55,720 --> 00:06:59,520 in that five-year forecast. 141 00:06:59,520 --> 00:07:01,280 I will tell you, we've also assumed 142 00:07:01,280 --> 00:07:06,280 a slightly lower return on investment 143 00:07:06,280 --> 00:07:08,720 than what we're currently receiving, 144 00:07:08,720 --> 00:07:10,600 just because at any point, 145 00:07:10,600 --> 00:07:15,360 the commission could call us in for a full rate case. 146 00:07:15,360 --> 00:07:16,960 Well, we don't anticipate one, 147 00:07:16,960 --> 00:07:18,680 but from a budgetary standpoint, 148 00:07:18,680 --> 00:07:21,360 we've kind of taken a more conservative approach. 149 00:07:21,360 --> 00:07:24,280 - Okay, thank you. 150 00:07:24,280 --> 00:07:25,120 - Yes, sir. 151 00:07:25,120 --> 00:07:28,600 - Go ahead, Karen, I'll let you go first. 152 00:07:28,600 --> 00:07:30,240 - Oh, thanks. 153 00:07:30,240 --> 00:07:33,040 Just a sort of procedural question for staff. 154 00:07:33,040 --> 00:07:38,160 Why is this contract amendment 155 00:07:38,160 --> 00:07:42,400 on individual approval part of the agenda? 156 00:07:42,400 --> 00:07:45,200 And we, but we've also have the same kind 157 00:07:45,200 --> 00:07:49,440 of contract amendments on consent agenda. 158 00:07:49,440 --> 00:07:51,840 What's the, what are the criteria 159 00:07:51,840 --> 00:07:54,240 for where it shows up on the agenda? 160 00:07:54,240 --> 00:07:57,840 - Well, it's really on a case-by-case basis, 161 00:07:57,840 --> 00:07:59,440 but a lot of times it's, 162 00:07:59,440 --> 00:08:01,640 what's driving it is the dollar amount. 163 00:08:01,640 --> 00:08:05,880 And so depending on dollar amount, we're placing. 164 00:08:05,880 --> 00:08:07,240 - There's a dollar cutoff? 165 00:08:09,160 --> 00:08:12,040 - It's not a hard dollar amount, it's more subjective. 166 00:08:12,040 --> 00:08:13,800 The staff is trying to determine 167 00:08:13,800 --> 00:08:15,160 whether it needs to be in consent agenda, 168 00:08:15,160 --> 00:08:17,160 or if it's going to be pulled anyways, 169 00:08:17,160 --> 00:08:18,960 we go ahead and do that proactively. 170 00:08:18,960 --> 00:08:22,160 - Okay, I guess that's fine, 171 00:08:22,160 --> 00:08:24,880 because of course consent agenda goes faster, 172 00:08:24,880 --> 00:08:28,120 but I just want to make sure that things don't get snuck 173 00:08:28,120 --> 00:08:30,320 into those huge consent agendas. 174 00:08:30,320 --> 00:08:35,000 - Correct, we pay very close attention to those, yes. 175 00:08:35,000 --> 00:08:36,560 - Okay, thanks, Tony. 176 00:08:36,560 --> 00:08:38,920 - All right, I'm sure if this was on consent, 177 00:08:38,920 --> 00:08:42,160 one of us would have pulled it at three and a half million. 178 00:08:42,160 --> 00:08:43,160 Charlie, go ahead. 179 00:08:43,160 --> 00:08:46,960 - I think I know the answer to this, but just to check, 180 00:08:46,960 --> 00:08:51,520 I noticed the approvals date back to 2001, 181 00:08:51,520 --> 00:08:53,880 and this is a third amendment. 182 00:08:53,880 --> 00:08:57,960 I assume the reason we're doing that via amendment, 183 00:08:57,960 --> 00:09:02,960 rather than via a new ordinance is just for expediency? 184 00:09:05,040 --> 00:09:06,640 - Yes, sir, it is for expediency, 185 00:09:06,640 --> 00:09:09,520 but just to let you guys know that we expect 186 00:09:09,520 --> 00:09:12,080 for all the ones that I'm gonna visit with you today, 187 00:09:12,080 --> 00:09:14,320 we expect the funding to last about three or four years, 188 00:09:14,320 --> 00:09:17,000 and we are gonna go out for another RFQ at that time, 189 00:09:17,000 --> 00:09:19,080 just to make sure that we are getting 190 00:09:19,080 --> 00:09:21,280 the best deal for the city. 191 00:09:21,280 --> 00:09:22,440 - Okay, thank you. 192 00:09:22,440 --> 00:09:24,720 - Thank you. - I'll move approval. 193 00:09:24,720 --> 00:09:26,400 Oh, I'm sorry, you had a question. 194 00:09:26,400 --> 00:09:29,120 - No, I actually had the same question you had, Charlie, 195 00:09:29,120 --> 00:09:31,400 just so that the public understood what was going on. 196 00:09:31,400 --> 00:09:33,400 So, no, you're fine. 197 00:09:33,400 --> 00:09:35,400 Any other questions? - In that case, I'll move approval. 198 00:09:35,400 --> 00:09:37,280 - Oh, wait, Billy's got a question, sorry. 199 00:09:37,280 --> 00:09:38,800 Go ahead, Billy. - Go ahead, Billy. 200 00:09:38,800 --> 00:09:40,960 - I apologize for my tardiness here, 201 00:09:40,960 --> 00:09:45,000 but my question, it's probably in here, I didn't find it. 202 00:09:45,000 --> 00:09:47,320 What's the estimated construction cost? 203 00:09:47,320 --> 00:09:54,840 - The contract value was $3.3 and a half million dollars, 204 00:09:54,840 --> 00:09:57,160 the amendment value. 205 00:09:57,160 --> 00:09:59,560 The not to exceed for the entire contract, 206 00:09:59,560 --> 00:10:04,560 if this gets approved, is $11,435,000. 207 00:10:04,560 --> 00:10:06,880 - What's the estimated construction cost? 208 00:10:06,880 --> 00:10:11,680 - This is engineering services. 209 00:10:11,680 --> 00:10:12,520 It's not really. 210 00:10:12,520 --> 00:10:15,560 - Okay. 211 00:10:15,560 --> 00:10:16,520 - Billy, to answer your question, Billy, 212 00:10:16,520 --> 00:10:18,520 it's for several projects. 213 00:10:18,520 --> 00:10:20,680 It's not just a single project. 214 00:10:20,680 --> 00:10:21,760 - Oh. 215 00:10:21,760 --> 00:10:24,240 - Yeah, the project that the engineering is for 216 00:10:24,240 --> 00:10:26,280 is what I was getting at. 217 00:10:26,280 --> 00:10:29,760 So the projects, do you have an estimate on all those? 218 00:10:29,760 --> 00:10:35,040 - I can provide that for you if I can figure this out again. 219 00:10:35,040 --> 00:10:40,720 - Like I said, I apologize for my tardiness. 220 00:10:40,720 --> 00:10:43,800 - So I brought the slide back up. 221 00:10:43,800 --> 00:10:45,920 This is the scope of what we've included 222 00:10:45,920 --> 00:10:49,200 in this amendment for all the substation projects 223 00:10:49,200 --> 00:10:50,880 and transmission line projects. 224 00:10:50,880 --> 00:10:55,920 - There's no construction estimate 225 00:10:55,920 --> 00:10:57,040 for these projects? 226 00:10:57,040 --> 00:11:03,400 - We can provide you the actual proposal from the vendor 227 00:11:03,400 --> 00:11:05,640 that has these things broken down, 228 00:11:05,640 --> 00:11:08,400 but we just combined them here, I guess for expediency, 229 00:11:08,400 --> 00:11:11,200 just to kind of give you an idea of what's all included. 230 00:11:11,200 --> 00:11:13,480 - Okay, and I'm getting at this 231 00:11:13,480 --> 00:11:15,520 because there's usually, when you're putting together 232 00:11:15,520 --> 00:11:19,360 any project, obviously, there's a lot of engineering 233 00:11:19,360 --> 00:11:22,480 involved, and I like to get an idea of usually 234 00:11:22,480 --> 00:11:26,520 what percentage of cost the engineering is 235 00:11:26,520 --> 00:11:28,000 of the actual project. 236 00:11:28,000 --> 00:11:35,360 - It's usually a five to 10% of the project, Billy, 237 00:11:35,360 --> 00:11:37,560 but I will tell you, some of these projects, 238 00:11:37,560 --> 00:11:40,360 we're gonna talk about in detail when Nick comes up here 239 00:11:40,360 --> 00:11:42,160 and we go through the CIP program, 240 00:11:42,160 --> 00:11:44,160 so you'll see many of these projects there 241 00:11:44,160 --> 00:11:48,760 with the engineering's estimate at completion 242 00:11:48,760 --> 00:11:51,480 that'll kind of give you the information you're looking for. 243 00:11:51,480 --> 00:11:53,000 - Okay, fair enough, thank you. 244 00:11:53,000 --> 00:12:00,920 - All right, now, Charlie, would you like to move approval? 245 00:12:00,920 --> 00:12:05,080 - I will reconfirm my motion to approve. 246 00:12:05,080 --> 00:12:06,240 - Do we have a second? 247 00:12:06,240 --> 00:12:09,920 Oh, Ed seconds, all in favor say aye. 248 00:12:09,920 --> 00:12:11,800 - Aye. - Opposed? 249 00:12:11,800 --> 00:12:13,960 - Aye. - Motion carries. 250 00:12:13,960 --> 00:12:16,560 Next item is consider recommending the adoption 251 00:12:16,560 --> 00:12:18,240 of an ordinance of the city of Denton, 252 00:12:18,240 --> 00:12:21,760 a Texas home rule municipal corporation authorizing 253 00:12:21,760 --> 00:12:23,280 the approval of a third amendment 254 00:12:23,280 --> 00:12:24,920 to the professional service agreement 255 00:12:24,920 --> 00:12:28,280 between the city of Denton and Black and Veatch Corporation 256 00:12:28,280 --> 00:12:31,240 amending the contract approved by city council 257 00:12:31,240 --> 00:12:36,240 on November 6, 2012 in the not to exceed amount of 564,000 258 00:12:36,240 --> 00:12:39,640 amended by amendments one through two 259 00:12:39,640 --> 00:12:42,720 approved by the city council said third amendment 260 00:12:42,720 --> 00:12:45,440 to continue to provide electrical substation design 261 00:12:45,440 --> 00:12:47,840 and other engineering related consulting services 262 00:12:47,840 --> 00:12:49,360 for the capital improvement projects 263 00:12:49,360 --> 00:12:52,280 and other technical support for the Denton 264 00:12:52,280 --> 00:12:55,520 municipal electric providing the expenditure funds therefore 265 00:12:55,520 --> 00:12:58,960 and providing an effective date file 5089 266 00:12:58,960 --> 00:13:01,640 providing for additional third amendment expenditure amount 267 00:13:01,640 --> 00:13:06,640 not to exceed 2,990,900 with the total contract amount 268 00:13:06,640 --> 00:13:11,520 not to exceed 6,556,300. 269 00:13:11,520 --> 00:13:16,440 And I think is it Jerry again, I believe him. 270 00:13:16,440 --> 00:13:17,880 - It is me again. 271 00:13:17,880 --> 00:13:21,200 And it looks like I'm having technical issues 272 00:13:21,200 --> 00:13:23,760 'cause when I pull the presentation up, it's empty. 273 00:13:23,760 --> 00:13:29,480 So if you guys would kind of bear with me as far as 274 00:13:29,480 --> 00:13:31,040 you should have gotten a copy of the PowerPoint 275 00:13:31,040 --> 00:13:34,160 in your package, if I could just go over the information 276 00:13:34,160 --> 00:13:36,720 with you, would that be sufficient? 277 00:13:36,720 --> 00:13:38,000 - It's fine with me. 278 00:13:38,000 --> 00:13:39,560 - All right. - Add it up. 279 00:13:39,560 --> 00:13:44,520 - So again, we're before you today to talk about 280 00:13:44,520 --> 00:13:48,480 a third amendment for the Black and Veatch Corporation 281 00:13:48,480 --> 00:13:50,360 engineering firm. 282 00:13:50,360 --> 00:13:54,800 This amendment is the amount of $2,990,000 283 00:13:54,800 --> 00:13:57,240 with a not to exceed for the total contract 284 00:13:57,240 --> 00:14:01,360 of $6,556,300. 285 00:14:01,360 --> 00:14:06,560 Going to the second PowerPoint slide 286 00:14:06,560 --> 00:14:08,200 that you should have been seeing. 287 00:14:08,200 --> 00:14:12,280 Professional services that they provide for DME right now 288 00:14:12,280 --> 00:14:16,400 include NERC, ERCOT and the Texas Reliability Entity 289 00:14:16,400 --> 00:14:21,400 Compliance Support, Relay Design and Setting Consultation. 290 00:14:21,400 --> 00:14:23,720 The next one for this will be the Brinker Substation 291 00:14:23,720 --> 00:14:27,640 which should be coming online in the next few months. 292 00:14:27,640 --> 00:14:31,240 New and Future Site Conceptual Design Analysis. 293 00:14:31,240 --> 00:14:34,040 This is related to the new Underwood Substation 294 00:14:34,040 --> 00:14:36,560 which is near the Coal Ranch, Under Ranch area 295 00:14:36,560 --> 00:14:39,080 and additional engineering and technical support. 296 00:14:41,840 --> 00:14:46,840 The next slide would be professional services continued 297 00:14:46,840 --> 00:14:53,800 for the Hickory Substation Owners Engineering Services. 298 00:14:53,800 --> 00:14:58,360 The Section 2269.305 of the Texas Government Code 299 00:14:58,360 --> 00:15:01,880 requires the City of Denton have an owner's engineer 300 00:15:01,880 --> 00:15:03,720 to serve as DME's representative 301 00:15:03,720 --> 00:15:06,360 for this substation construction. 302 00:15:06,360 --> 00:15:09,680 Black and Veatch will provide that service for us. 303 00:15:09,680 --> 00:15:12,280 The Hickory Substation, the GIS substation 304 00:15:12,280 --> 00:15:14,760 will be a design build project. 305 00:15:14,760 --> 00:15:18,360 So it'd be engineered and constructed under one contract. 306 00:15:18,360 --> 00:15:20,240 We believe that this will provide us 307 00:15:20,240 --> 00:15:22,080 with some price certainty 308 00:15:22,080 --> 00:15:24,640 and it provides less design risk. 309 00:15:24,640 --> 00:15:27,800 GIS is a new technology to DME. 310 00:15:27,800 --> 00:15:29,920 And so we're using some folks 311 00:15:29,920 --> 00:15:31,960 that have got a little bit more experience with GIS 312 00:15:31,960 --> 00:15:33,920 than what we do to help us through the process 313 00:15:33,920 --> 00:15:37,400 of getting this substation designed and built. 314 00:15:37,400 --> 00:15:40,160 And Black and Veatch, it's role during this time 315 00:15:40,160 --> 00:15:42,800 will prepare design criteria package, 316 00:15:42,800 --> 00:15:45,120 assist with the evaluation of bids, 317 00:15:45,120 --> 00:15:46,720 assist with the design reviews 318 00:15:46,720 --> 00:15:49,240 and provide engineering oversight of the project. 319 00:15:49,240 --> 00:15:55,400 The next slide will be a little bit of information 320 00:15:55,400 --> 00:15:56,480 about the costs associated, 321 00:15:56,480 --> 00:15:59,960 or the costs included with this presentation 322 00:15:59,960 --> 00:16:03,280 for the $2.9 million we're asking for. 323 00:16:03,280 --> 00:16:05,560 900, almost a million dollars of that 324 00:16:05,560 --> 00:16:08,320 is to perform the services as the owner engineer 325 00:16:08,320 --> 00:16:10,280 for Hickory GIS substation. 326 00:16:10,280 --> 00:16:14,560 Then we also have NERC, ERCOT, TRE compliant support, 327 00:16:14,560 --> 00:16:18,400 the relay design and setting consultation, substation site, 328 00:16:18,400 --> 00:16:23,400 conceptual design and analysis, 329 00:16:23,400 --> 00:16:26,160 future substation project designs 330 00:16:26,160 --> 00:16:28,120 and additional engineering and technical support, 331 00:16:28,120 --> 00:16:29,520 which are the items that we had talked about 332 00:16:29,520 --> 00:16:32,320 in previous presentations. 333 00:16:32,320 --> 00:16:34,760 All of these combined, their estimated costs 334 00:16:34,760 --> 00:16:38,920 combined to the $2.99 million that we're requesting. 335 00:16:38,920 --> 00:16:43,800 - Great. 336 00:16:43,800 --> 00:16:47,760 - And again, the recommendation is that staff recommends 337 00:16:47,760 --> 00:16:51,160 approval of the amendment to the existing 338 00:16:51,160 --> 00:16:53,200 Black and Veatch Corporation contract 339 00:16:53,200 --> 00:16:55,520 in the amount of $2.99 million 340 00:16:55,520 --> 00:16:59,520 with a total not to exceed of $6.556, $300. 341 00:16:59,520 --> 00:17:03,120 And again, as the other contract, 342 00:17:03,120 --> 00:17:04,720 this is being structured as an hourly, 343 00:17:04,720 --> 00:17:09,200 so that only charges for services rendered will be billed. 344 00:17:09,200 --> 00:17:13,640 Questions? 345 00:17:13,640 --> 00:17:14,920 - And just like the last one, 346 00:17:14,920 --> 00:17:16,840 this one will, the majority will be covered 347 00:17:16,840 --> 00:17:21,080 under our transmission rates, correct? 348 00:17:21,080 --> 00:17:22,240 - Yes. 349 00:17:22,240 --> 00:17:23,280 - I have a question. 350 00:17:23,280 --> 00:17:24,240 - Go ahead Ed. 351 00:17:24,240 --> 00:17:25,440 Sorry, I didn't see you there. 352 00:17:25,440 --> 00:17:26,280 - That's all right. 353 00:17:26,280 --> 00:17:28,160 This is a rather mundane question, 354 00:17:28,160 --> 00:17:32,360 but some people might be curious as I am. 355 00:17:32,360 --> 00:17:34,360 Lawyers bill by the hour. 356 00:17:34,360 --> 00:17:39,200 How does a consultancy or an engineering firm 357 00:17:39,200 --> 00:17:43,760 like this bill in terms of, what's their price structure? 358 00:17:43,760 --> 00:17:48,400 Is there an actual price structure that is given 359 00:17:48,400 --> 00:17:52,200 to the purchaser as to how much, what is going to cost, 360 00:17:52,200 --> 00:17:56,360 or is it, I don't understand the billing procedure. 361 00:17:56,360 --> 00:18:00,360 - Yeah, contracts like this, 362 00:18:01,320 --> 00:18:03,480 contracts like this are done under an RFQ, 363 00:18:03,480 --> 00:18:05,720 so it's a request for qualifications, 364 00:18:05,720 --> 00:18:07,600 which during the entire contract process, 365 00:18:07,600 --> 00:18:10,680 we can't really discuss price until we've met, 366 00:18:10,680 --> 00:18:14,000 we've decided on the firm that we feel is the best one 367 00:18:14,000 --> 00:18:16,960 for the services that we want. 368 00:18:16,960 --> 00:18:19,040 Now, typically what I've seen in the past 369 00:18:19,040 --> 00:18:21,920 is that they have a listing of all of the staff 370 00:18:21,920 --> 00:18:23,520 that they're gonna do, their titles, 371 00:18:23,520 --> 00:18:28,160 and an hourly rate for that person to do work with us. 372 00:18:28,160 --> 00:18:30,880 Then when we get billed, we actually see, 373 00:18:30,880 --> 00:18:34,080 there's a senior engineer, X number of hours, 374 00:18:34,080 --> 00:18:36,960 and X number of dollars per hour total cost. 375 00:18:36,960 --> 00:18:38,080 And we kind of look at that 376 00:18:38,080 --> 00:18:40,120 compared to what we think's reasonable. 377 00:18:40,120 --> 00:18:41,960 And if it is, then we say, okay, 378 00:18:41,960 --> 00:18:43,880 we go ahead and move to pay the bill. 379 00:18:43,880 --> 00:18:46,080 Otherwise we do call them back and say, hey, look, 380 00:18:46,080 --> 00:18:48,520 can you kind of explain to me what their role was, 381 00:18:48,520 --> 00:18:49,680 just to make sure that we know 382 00:18:49,680 --> 00:18:52,440 that the pricing and the cost is fair. 383 00:18:52,440 --> 00:18:54,720 - Great, thank you very much. 384 00:18:54,720 --> 00:18:57,040 - Other questions? 385 00:18:57,040 --> 00:18:58,840 - Yeah, I have a question. 386 00:18:58,840 --> 00:19:00,640 - Billy was up first. 387 00:19:00,640 --> 00:19:01,680 - Go ahead, Billy. 388 00:19:01,680 --> 00:19:06,120 - I have the same question that I did for the last item. 389 00:19:06,120 --> 00:19:09,200 And I would assume, Tony, 390 00:19:09,200 --> 00:19:11,800 is this gonna be in a later presentation? 391 00:19:11,800 --> 00:19:16,240 I prefer that that estimate be on the money 392 00:19:16,240 --> 00:19:18,840 that you're asking for, have that question answered 393 00:19:18,840 --> 00:19:21,080 when you're asking for the money. 394 00:19:21,080 --> 00:19:21,920 - We can do that. 395 00:19:21,920 --> 00:19:23,400 - We can certainly do that. 396 00:19:23,400 --> 00:19:25,600 - Okay, and just a comment. 397 00:19:25,600 --> 00:19:28,800 It is industry standard and for engineering 398 00:19:28,800 --> 00:19:31,160 to be billed by the hour 399 00:19:31,160 --> 00:19:33,240 and plus expenses like lawyers bill. 400 00:19:33,240 --> 00:19:37,720 - I think then it was Russ. 401 00:19:37,720 --> 00:19:41,640 - Yeah, Ed, to answer one of your comments, 402 00:19:41,640 --> 00:19:43,880 I went through the calculation. 403 00:19:43,880 --> 00:19:47,720 If you look at the total cost divided by the number of hours, 404 00:19:47,720 --> 00:19:52,320 you get around $155 an hour for an average rate 405 00:19:52,320 --> 00:19:53,920 for what they're asking for. 406 00:19:53,920 --> 00:19:54,800 - Okay. 407 00:19:54,800 --> 00:19:59,040 - If you compare that number with your favorite local lawyers 408 00:19:59,040 --> 00:20:03,160 hourly rate, lawyers are probably gonna be 409 00:20:03,160 --> 00:20:04,360 a lot more than that. 410 00:20:04,360 --> 00:20:07,560 So one other question I had, Jerry, 411 00:20:07,560 --> 00:20:10,560 will Black & Beech be bidding 412 00:20:10,560 --> 00:20:15,560 on the actual design bid part of this or not? 413 00:20:15,560 --> 00:20:17,400 - No, as the owner's engineer, 414 00:20:17,400 --> 00:20:20,520 they can't also bid on the project. 415 00:20:20,520 --> 00:20:21,360 - Okay. 416 00:20:23,080 --> 00:20:25,760 Okay, Charlie, did you have a question? 417 00:20:25,760 --> 00:20:26,600 - Real quick one. 418 00:20:26,600 --> 00:20:27,760 Can you tell me one more time 419 00:20:27,760 --> 00:20:30,800 what gas insulations benefits are relative 420 00:20:30,800 --> 00:20:32,960 to what the city's been using in the past? 421 00:20:32,960 --> 00:20:36,320 - What we're used to in the past 422 00:20:36,320 --> 00:20:39,400 is what you see most time is air insulated substations. 423 00:20:39,400 --> 00:20:41,080 Gas insulated substations, 424 00:20:41,080 --> 00:20:43,680 the main advantage is their footprint. 425 00:20:43,680 --> 00:20:44,640 They're a lot smaller. 426 00:20:44,640 --> 00:20:46,200 They take up a lot less land 427 00:20:46,200 --> 00:20:50,040 than what an air insulated substation requires. 428 00:20:50,040 --> 00:20:52,520 So that's a major benefit to a lot of folks. 429 00:20:52,520 --> 00:20:53,760 If you have a limited area 430 00:20:53,760 --> 00:20:55,680 that you wanna put a substation in, 431 00:20:55,680 --> 00:20:58,960 then GIS substations are typically a good route for you. 432 00:20:58,960 --> 00:21:02,200 - So what we're trying to do is optimize the cost. 433 00:21:02,200 --> 00:21:06,800 We're not meeting someone else's requirement 434 00:21:06,800 --> 00:21:08,040 that came from somewhere else. 435 00:21:08,040 --> 00:21:10,880 We're just trying to, land has gotten more expensive 436 00:21:10,880 --> 00:21:13,280 and gas insulation might be cheaper. 437 00:21:13,280 --> 00:21:17,040 - I'm not gonna say it's gonna be cheaper, 438 00:21:17,040 --> 00:21:19,760 but it certainly allows us to use the land 439 00:21:19,760 --> 00:21:21,280 that we've got provided, 440 00:21:21,280 --> 00:21:23,360 to be able to put in the capacity, 441 00:21:23,360 --> 00:21:28,680 current and future capacity of the substation that we need. 442 00:21:28,680 --> 00:21:29,520 - Great, thanks. 443 00:21:29,520 --> 00:21:30,360 I meant overall cheaper. 444 00:21:30,360 --> 00:21:32,600 The land savings outweighs the extra cost 445 00:21:32,600 --> 00:21:33,880 for the gas insulation. 446 00:21:33,880 --> 00:21:36,640 - Not necessarily. 447 00:21:36,640 --> 00:21:37,480 - No. 448 00:21:37,480 --> 00:21:38,640 - Oh, okay. 449 00:21:38,640 --> 00:21:41,080 - Yeah, Charlie, this is Tony. 450 00:21:41,080 --> 00:21:44,400 So there was two substations 451 00:21:44,400 --> 00:21:46,680 that were being proposed by DMV a couple of years ago. 452 00:21:46,680 --> 00:21:48,600 One was Eagle, one was Hickory. 453 00:21:48,600 --> 00:21:50,120 Council had a lot of conversations 454 00:21:50,120 --> 00:21:52,160 about where the substations were gonna be 455 00:21:52,160 --> 00:21:54,960 in that area of town. 456 00:21:54,960 --> 00:21:58,080 And direction the council gave us was to go forward 457 00:21:58,080 --> 00:22:00,720 with a gas insulated substation. 458 00:22:00,720 --> 00:22:01,920 And so as you know, 459 00:22:01,920 --> 00:22:04,440 we've proposed to the POB and the council 460 00:22:04,440 --> 00:22:05,960 not to do the Eagle substation, 461 00:22:05,960 --> 00:22:09,680 but we're still pressing forward with the Hickory substation. 462 00:22:09,680 --> 00:22:11,720 And based on council's direction, 463 00:22:11,720 --> 00:22:14,160 'cause the considerations with the neighborhood, 464 00:22:14,160 --> 00:22:15,240 discussions with the neighborhood, 465 00:22:15,240 --> 00:22:18,520 we're gonna proceed with a gas insulated station 466 00:22:18,520 --> 00:22:20,720 there on Hickory. 467 00:22:20,720 --> 00:22:23,400 So it was really a council and frankly, 468 00:22:23,400 --> 00:22:26,600 POB decision to push forward with that type of substation. 469 00:22:26,600 --> 00:22:29,320 - Thank you. 470 00:22:29,320 --> 00:22:31,160 - Charlie, it may be cheaper politically, 471 00:22:31,160 --> 00:22:32,800 I think is the answer. 472 00:22:32,800 --> 00:22:33,640 - I understand. 473 00:22:33,640 --> 00:22:37,480 - Any other questions? 474 00:22:37,480 --> 00:22:40,880 All right, do we have a motion to approve? 475 00:22:40,880 --> 00:22:43,480 - Move approval. 476 00:22:43,480 --> 00:22:46,320 - Okay, Barbara's moved approval. 477 00:22:46,320 --> 00:22:47,880 She's stuck right now. 478 00:22:47,880 --> 00:22:49,000 Do we have a second? 479 00:22:49,000 --> 00:22:50,520 - I'll second. 480 00:22:50,520 --> 00:22:51,600 - We're all stuck. 481 00:22:51,600 --> 00:22:53,960 - Not on mine. 482 00:22:53,960 --> 00:22:56,720 - Not on mine. 483 00:22:56,720 --> 00:22:58,200 - Okay. 484 00:22:58,200 --> 00:22:59,560 - All right, one of you second. 485 00:22:59,560 --> 00:23:00,400 - Hello. 486 00:23:00,400 --> 00:23:03,080 - Susan, we can hear you, Susan. 487 00:23:03,080 --> 00:23:07,880 - No, she's frozen now. 488 00:23:07,880 --> 00:23:13,120 - Can we take this or you wanna wait on Susan? 489 00:23:13,120 --> 00:23:16,880 - Assuming she wants votes, I'll vote aye. 490 00:23:18,160 --> 00:23:19,000 - Yeah. 491 00:23:19,000 --> 00:23:21,160 - I'll second. 492 00:23:21,160 --> 00:23:22,000 - I'm looking at Larry. 493 00:23:22,000 --> 00:23:24,800 Larry, is it okay if we have someone else take over? 494 00:23:24,800 --> 00:23:26,840 - Yeah, Billy can go ahead and call the vote. 495 00:23:26,840 --> 00:23:27,680 - Okay. 496 00:23:27,680 --> 00:23:29,400 - We have a motion. 497 00:23:29,400 --> 00:23:31,360 Can we have a second? 498 00:23:31,360 --> 00:23:32,680 - I second. 499 00:23:32,680 --> 00:23:33,840 - Second from Russ. 500 00:23:33,840 --> 00:23:36,360 All those in favor, please say aye. 501 00:23:36,360 --> 00:23:37,200 - Aye. 502 00:23:37,200 --> 00:23:38,400 - Aye. 503 00:23:38,400 --> 00:23:39,480 - Opposed? 504 00:23:39,480 --> 00:23:41,640 Motion passes. 505 00:23:41,640 --> 00:23:46,480 Let's note that Susan is knocked off here. 506 00:23:46,480 --> 00:23:49,200 So I'm a vice chair, I'll take that. 507 00:23:49,200 --> 00:23:50,200 Let me get her back. 508 00:23:50,200 --> 00:23:56,560 - So Billy, that was a six OVO with Susan being absent. 509 00:23:56,560 --> 00:23:57,760 - That's correct. 510 00:23:57,760 --> 00:23:58,600 - Okay. 511 00:23:58,600 --> 00:24:02,000 - Okay, we're moving on to, 512 00:24:02,000 --> 00:24:05,160 that gets us to the management reports, doesn't it? 513 00:24:05,160 --> 00:24:06,000 - It does. 514 00:24:06,000 --> 00:24:07,400 So on the management reports, 515 00:24:07,400 --> 00:24:09,720 we have a couple of items here for you. 516 00:24:09,720 --> 00:24:12,160 So the first item that we had was just a follow-up memo 517 00:24:12,160 --> 00:24:15,600 on the root cause analysis for Hickory Creek. 518 00:24:15,600 --> 00:24:19,520 And we do have Kenny Banks and Frank Pugsley on here. 519 00:24:19,520 --> 00:24:22,600 I did just wanna briefly just thank Frank 520 00:24:22,600 --> 00:24:25,560 for his two years of service to the cities. 521 00:24:25,560 --> 00:24:29,320 I communicate to you, Frank is departing the city. 522 00:24:29,320 --> 00:24:32,160 His final day will be October 5th. 523 00:24:32,160 --> 00:24:34,840 And I have asked Terry Nolte to step in 524 00:24:34,840 --> 00:24:38,920 as the interim director while we do an executive search 525 00:24:38,920 --> 00:24:42,640 for Frank and he'll be working with Kenny Banks 526 00:24:42,640 --> 00:24:46,480 and also Preenam-Detchmouth to continue to run 527 00:24:46,480 --> 00:24:47,800 those two utilities. 528 00:24:47,800 --> 00:24:50,720 But happy to answer any questions if anyone has any 529 00:24:50,720 --> 00:24:53,720 on that Hickory Creek root cause analysis follow-up memo. 530 00:24:53,720 --> 00:24:58,360 - Yes, I have a few questions, comments on that. 531 00:24:58,360 --> 00:25:00,640 - Sir. 532 00:25:00,640 --> 00:25:05,720 - First of all, thanks very much for doing that. 533 00:25:05,720 --> 00:25:11,080 And it's a important step forward, I think, 534 00:25:11,080 --> 00:25:15,920 for city of Denton utilities to get some process nailed down 535 00:25:15,920 --> 00:25:19,160 to evaluate this stuff in the future. 536 00:25:19,160 --> 00:25:22,160 One suggestion I have on the template 537 00:25:22,160 --> 00:25:26,320 is if you could add something somewhere near the end, 538 00:25:26,320 --> 00:25:27,920 asking the question, 539 00:25:27,920 --> 00:25:34,600 should any operating practices or procedures be revised 540 00:25:34,600 --> 00:25:36,680 as a result of the incident? 541 00:25:36,680 --> 00:25:39,160 And if the answer to that is yes, 542 00:25:39,160 --> 00:25:43,280 then those revisions need to be written down, 543 00:25:43,280 --> 00:25:44,520 discussed a little bit. 544 00:25:44,520 --> 00:25:48,200 Can you comment on that? 545 00:25:48,200 --> 00:25:51,440 - Sure, Mr. Baffert, this is Frank Pugsley, 546 00:25:51,440 --> 00:25:53,920 water and wastewater utilities director. 547 00:25:53,920 --> 00:25:56,520 And yes, in the template, 548 00:25:56,520 --> 00:25:59,600 we do have the section for potential problem 549 00:25:59,600 --> 00:26:03,080 and opportunity analysis where we specifically want 550 00:26:03,080 --> 00:26:06,920 to look at the issues that we faced 551 00:26:06,920 --> 00:26:09,480 and opportunities to prevent them in the future 552 00:26:09,480 --> 00:26:13,600 and to consider better or different maintenance logs 553 00:26:13,600 --> 00:26:16,440 and newer updated standard operating procedures 554 00:26:16,440 --> 00:26:19,080 or training for staff to help prevent those 555 00:26:19,080 --> 00:26:20,720 in the future for sure. 556 00:26:20,720 --> 00:26:23,800 And we also, what we didn't complete in this report 557 00:26:23,800 --> 00:26:24,800 that was sent to you this time 558 00:26:24,800 --> 00:26:28,280 because of the time that had elapsed since the event 559 00:26:28,280 --> 00:26:30,760 would be really an after action review 560 00:26:30,760 --> 00:26:34,920 for getting with staff to see what went right 561 00:26:34,920 --> 00:26:37,320 during the event and what didn't quite go 562 00:26:37,320 --> 00:26:40,960 as well as planned so we can be better the next time. 563 00:26:40,960 --> 00:26:42,880 - Yeah, yeah, that's all true. 564 00:26:42,880 --> 00:26:47,000 I would just suggest Frank that the actual template 565 00:26:47,000 --> 00:26:52,000 be explicitly to include the question 566 00:26:52,000 --> 00:26:58,320 which would be answered in every event that you analyze. 567 00:26:58,320 --> 00:27:02,680 Does do any operating practices need to be revised? 568 00:27:02,680 --> 00:27:05,160 Yes or no, and then if yes, explain though. 569 00:27:05,160 --> 00:27:06,520 That's all I was getting at there. 570 00:27:06,520 --> 00:27:07,960 - Okay, understood. 571 00:27:07,960 --> 00:27:11,040 Yeah, we can add that if explicitly in there. 572 00:27:11,040 --> 00:27:13,720 - And as I was reading this event, 573 00:27:13,720 --> 00:27:16,760 it looked to me like it'd also be beneficial 574 00:27:16,760 --> 00:27:21,040 if you could include some kind of a small drawing 575 00:27:21,040 --> 00:27:25,440 of the piping system showing the components 576 00:27:25,440 --> 00:27:29,320 as they were configured and which ones failed. 577 00:27:29,320 --> 00:27:31,680 Something that matches what you're describing 578 00:27:31,680 --> 00:27:33,240 in words in the narrative. 579 00:27:33,240 --> 00:27:37,360 - Sure, that's a good suggestion. 580 00:27:37,360 --> 00:27:41,320 I think we can pick up especially like the as-built drawings 581 00:27:41,320 --> 00:27:44,440 and mark those up and include them as an attachment. 582 00:27:44,440 --> 00:27:49,200 - Yeah, another thing, the thing that actually started this, 583 00:27:49,200 --> 00:27:52,160 if I read your description correctly, 584 00:27:52,160 --> 00:27:57,160 is an electrical anomaly that resulted in the VFD going down. 585 00:27:59,320 --> 00:28:02,600 And I think that electrical anomaly 586 00:28:02,600 --> 00:28:07,600 and what took down the VFD really deserves more detail 587 00:28:07,600 --> 00:28:10,560 than what we had there. 588 00:28:10,560 --> 00:28:15,280 Maybe you can't reconstruct that now, but in the future. 589 00:28:15,280 --> 00:28:17,720 - Yes, absolutely. 590 00:28:17,720 --> 00:28:21,640 And we did at the time attempt to kind of reconstruct that. 591 00:28:21,640 --> 00:28:23,840 We spoke with DME to see if they had experienced 592 00:28:23,840 --> 00:28:27,840 or seen anything in their SCADA at the nearby substations. 593 00:28:27,840 --> 00:28:30,720 And honestly, between the two utilities, 594 00:28:30,720 --> 00:28:33,440 we weren't able to actually identify anything, 595 00:28:33,440 --> 00:28:36,840 but the VFD for some reason did trip out 596 00:28:36,840 --> 00:28:40,560 for just a split second in causing this issue. 597 00:28:40,560 --> 00:28:42,800 And it could be just that the VFD is aging. 598 00:28:42,800 --> 00:28:44,400 It is in a harsh environment 599 00:28:44,400 --> 00:28:46,600 and it'll be replaced very soon. 600 00:28:46,600 --> 00:28:50,840 - Okay, and one final question. 601 00:28:50,840 --> 00:28:54,360 What new features in the new lift station 602 00:28:54,360 --> 00:28:57,280 are going to be installed so that something like this 603 00:28:57,280 --> 00:29:00,360 is less likely to happen in the future? 604 00:29:00,360 --> 00:29:03,560 - Sure, the existing lift station 605 00:29:03,560 --> 00:29:06,680 has that wet pit, dry pit configuration. 606 00:29:06,680 --> 00:29:10,600 It really doesn't have adequate isolation capabilities. 607 00:29:10,600 --> 00:29:13,280 So if something did go wrong in the dry pit, 608 00:29:13,280 --> 00:29:16,680 as far as mechanical piping, we don't have a way to isolate. 609 00:29:16,680 --> 00:29:21,720 The new lift station is a wet well with submersible pumps. 610 00:29:21,720 --> 00:29:25,400 And so the discharge piping is much less complicated 611 00:29:25,400 --> 00:29:29,040 and any kind of failure in the piping 612 00:29:29,040 --> 00:29:31,120 would not affect all three pumps. 613 00:29:31,120 --> 00:29:34,240 It will only affect the one pump that had an issue 614 00:29:34,240 --> 00:29:36,280 and we can isolate that much more easily. 615 00:29:36,280 --> 00:29:38,520 And the new lift station 616 00:29:38,520 --> 00:29:41,920 also will have integrated bypass connections 617 00:29:41,920 --> 00:29:45,680 so that we can connect temporary bypass pumps 618 00:29:45,680 --> 00:29:49,360 relatively quickly and not have to lay a quarter mile 619 00:29:49,360 --> 00:29:53,160 of hose to our neighbors lift station in the future. 620 00:29:54,240 --> 00:29:56,040 - Yeah, well, that's good. 621 00:29:56,040 --> 00:29:58,960 It might be worthwhile to include what you just said 622 00:29:58,960 --> 00:30:02,560 in some summarized form in with your report 623 00:30:02,560 --> 00:30:05,000 that you already wrote about this incident 624 00:30:05,000 --> 00:30:08,320 to let everyone know that things are gonna be 625 00:30:08,320 --> 00:30:11,480 configured differently in the new arrangement. 626 00:30:11,480 --> 00:30:14,800 - Understood, yes, sir. 627 00:30:14,800 --> 00:30:16,880 - That's all I have. 628 00:30:16,880 --> 00:30:17,720 Good job. 629 00:30:17,720 --> 00:30:23,680 - Okay, if there's no other questions on that, 630 00:30:23,680 --> 00:30:27,240 the next item is a memorandum from Becky Davidian. 631 00:30:27,240 --> 00:30:31,680 She's on the phone as well regarding the use of a 5% 632 00:30:31,680 --> 00:30:36,080 contingency on certain capital improvement projects. 633 00:30:36,080 --> 00:30:39,320 This is just really to provide a clarification 634 00:30:39,320 --> 00:30:40,280 on how that's gonna come. 635 00:30:40,280 --> 00:30:44,760 It's probably gonna impact bids and RPs that come to you, 636 00:30:44,760 --> 00:30:47,160 but certainly happy to answer any questions, 637 00:30:47,160 --> 00:30:48,840 have Becky answer any questions 638 00:30:48,840 --> 00:30:51,200 that anyone may have on that memo. 639 00:30:54,680 --> 00:30:55,640 Any questions? 640 00:30:55,640 --> 00:30:57,920 I'm back, by the way. 641 00:30:57,920 --> 00:31:02,160 Don't know what happened. 642 00:31:02,160 --> 00:31:05,600 All right. 643 00:31:05,600 --> 00:31:09,000 - I guess, I just, sorry to be so last minute, 644 00:31:09,000 --> 00:31:10,920 but I'm just trying to remember, 645 00:31:10,920 --> 00:31:14,120 I think we've always used a 5% contingency, haven't we, 646 00:31:14,120 --> 00:31:18,800 or I'm just not remembering exactly how this, 647 00:31:18,800 --> 00:31:22,440 it seems like we've been seeing this forever. 648 00:31:22,440 --> 00:31:24,960 This is just an explanation of something 649 00:31:24,960 --> 00:31:26,560 that we've already been doing. 650 00:31:26,560 --> 00:31:28,000 - I think we've lowered it, didn't we, 651 00:31:28,000 --> 00:31:31,160 from 10% to 5% in recent years? 652 00:31:31,160 --> 00:31:32,440 - I believe that's accurate. 653 00:31:32,440 --> 00:31:36,520 And again, I think the attempt here is to cut down 654 00:31:36,520 --> 00:31:40,480 as much as possible on future change orders that may occur, 655 00:31:40,480 --> 00:31:43,160 that may require action. 656 00:31:43,160 --> 00:31:45,280 And so that's really kind of the attempt, 657 00:31:45,280 --> 00:31:47,280 but really you just wanna be transparent 658 00:31:47,280 --> 00:31:50,880 and make sure that we're clear on what we're gonna be doing 659 00:31:50,880 --> 00:31:53,040 going forward with these bids. 660 00:31:53,040 --> 00:31:56,840 - Yeah, thanks, I was just too lazy to do the research. 661 00:31:56,840 --> 00:31:57,680 - Okay. 662 00:31:57,680 --> 00:32:02,680 All right, so the next item that's on here 663 00:32:02,680 --> 00:32:05,480 is your feature agenda items. 664 00:32:05,480 --> 00:32:08,000 We only have one, and I know we've had a couple of questions 665 00:32:08,000 --> 00:32:10,480 about the solid waste management strategy, 666 00:32:10,480 --> 00:32:12,440 but we wanna let you know that that is coming, 667 00:32:12,440 --> 00:32:15,920 will be coming to you on October 12th. 668 00:32:15,920 --> 00:32:20,840 And then on the last item is just also kind of new business, 669 00:32:20,840 --> 00:32:22,640 the one item that we had left over 670 00:32:22,640 --> 00:32:26,960 was the update on the lawsuit that you requested. 671 00:32:26,960 --> 00:32:28,520 Council's provided some direction 672 00:32:28,520 --> 00:32:30,840 and legal will be briefing you later today 673 00:32:30,840 --> 00:32:32,880 in your agenda on the direction 674 00:32:32,880 --> 00:32:34,640 that we got from council on that. 675 00:32:34,640 --> 00:32:40,080 So with that, that concludes the management reports 676 00:32:40,080 --> 00:32:41,480 unless there's something else, 677 00:32:41,480 --> 00:32:43,240 some of the questions that you have. 678 00:32:43,240 --> 00:32:47,640 - Doesn't look like it. 679 00:32:47,640 --> 00:32:49,640 And then we're on to concluding items. 680 00:32:49,640 --> 00:32:52,720 This is the point where you can congratulate Frank, 681 00:32:52,720 --> 00:32:56,200 wish him well, beg him to stay, all of the above. 682 00:32:56,200 --> 00:32:58,160 (laughing) 683 00:32:58,160 --> 00:33:02,160 I do anyway, Frank, wish you the best in the future. 684 00:33:02,160 --> 00:33:03,440 Congratulations. 685 00:33:03,440 --> 00:33:05,840 - Yes, wish you the best, Frank. 686 00:33:05,840 --> 00:33:06,680 Good luck. 687 00:33:06,680 --> 00:33:08,840 - Yeah, thank you all very much. 688 00:33:08,840 --> 00:33:10,360 It's been a pleasure working with you 689 00:33:10,360 --> 00:33:12,360 over the last few years, appreciate it. 690 00:33:12,360 --> 00:33:14,880 - Best wishes to you, Frank. 691 00:33:16,840 --> 00:33:19,640 - Does any board member wish to have item added 692 00:33:19,640 --> 00:33:21,000 to a future agenda? 693 00:33:21,000 --> 00:33:27,120 I do have one item that, oh, go ahead. 694 00:33:27,120 --> 00:33:28,800 You go ahead, Ed, you go first. 695 00:33:28,800 --> 00:33:32,960 - Is this the only place in the meeting, 696 00:33:32,960 --> 00:33:35,240 this is a question of point of order, 697 00:33:35,240 --> 00:33:37,000 is this the only place in the meeting 698 00:33:37,000 --> 00:33:39,240 where such a request can be made 699 00:33:39,240 --> 00:33:43,120 or can it be made after a presentation too? 700 00:33:43,120 --> 00:33:46,120 - Larry, could you answer that? 701 00:33:47,840 --> 00:33:51,280 - This would be the proper way to do it during this time 702 00:33:51,280 --> 00:33:53,760 as opposed to kind of going outside posting 703 00:33:53,760 --> 00:33:55,240 on another item. 704 00:33:55,240 --> 00:33:57,040 - Okay, then I have something. 705 00:33:57,040 --> 00:33:57,880 - Go ahead. 706 00:33:57,880 --> 00:34:03,160 - It's in relation to what is coming up in a little bit 707 00:34:03,160 --> 00:34:05,640 on the landfill gas management. 708 00:34:05,640 --> 00:34:10,120 I would like any information and/or discussion 709 00:34:10,120 --> 00:34:15,760 on the possibility of a pilot 710 00:34:16,680 --> 00:34:18,920 residential composting program, 711 00:34:18,920 --> 00:34:25,760 such as was done when recycling came in. 712 00:34:25,760 --> 00:34:29,040 I was on a committee, this was back in the '90s, 713 00:34:29,040 --> 00:34:33,040 on a community committee to establish 714 00:34:33,040 --> 00:34:34,760 a pilot recycling program, 715 00:34:34,760 --> 00:34:37,400 which is the program that is now in place. 716 00:34:37,400 --> 00:34:39,720 And I'd like to see the same process started 717 00:34:39,720 --> 00:34:45,000 for residential composting, 718 00:34:45,000 --> 00:34:46,960 a food waste especially. 719 00:34:46,960 --> 00:34:49,080 There are already programs like this in existence. 720 00:34:49,080 --> 00:34:51,320 Austin has a very good program. 721 00:34:51,320 --> 00:34:53,760 So I think it's time that we need to look at that. 722 00:34:53,760 --> 00:34:54,680 Thank you. 723 00:34:54,680 --> 00:34:58,800 - So Ed, how long has Austin been doing theirs? 724 00:34:58,800 --> 00:34:59,640 Do you know? 725 00:34:59,640 --> 00:35:04,520 - I think 2011. 726 00:35:04,520 --> 00:35:07,320 - Oh, okay. 727 00:35:07,320 --> 00:35:10,880 - And they have an incentive program too. 728 00:35:13,240 --> 00:35:17,680 - I can send you the information if you would like. 729 00:35:17,680 --> 00:35:21,000 - My daughter, she's been living in Austin. 730 00:35:21,000 --> 00:35:25,280 She just moved out, but she just got her bin 731 00:35:25,280 --> 00:35:26,960 for the composting. 732 00:35:26,960 --> 00:35:30,680 And she had her own robust composting. 733 00:35:30,680 --> 00:35:35,680 So I thought that it was a relatively new program in Austin. 734 00:35:35,680 --> 00:35:40,000 - Well, it was part of the 2011 plan. 735 00:35:40,000 --> 00:35:43,600 So I might be making the wrong assumption 736 00:35:43,600 --> 00:35:45,560 that it started in 2011. 737 00:35:45,560 --> 00:35:50,800 - So it's not just residential yard waste composting, 738 00:35:50,800 --> 00:35:52,480 you're food composting. 739 00:35:52,480 --> 00:35:53,320 - Yeah. 740 00:35:53,320 --> 00:35:54,760 - All right. 741 00:35:54,760 --> 00:35:56,360 - They have something like five bins. 742 00:35:56,360 --> 00:36:00,080 I mean, the color coding is very complex. 743 00:36:00,080 --> 00:36:01,440 - No one fit in my garage. 744 00:36:01,440 --> 00:36:06,760 - Thank you. 745 00:36:06,760 --> 00:36:07,840 - Billy. 746 00:36:07,840 --> 00:36:09,680 - I guess I better add beneficial. 747 00:36:09,680 --> 00:36:11,680 I wouldn't, my request earlier 748 00:36:11,680 --> 00:36:15,000 was on those two large engineering increases. 749 00:36:15,000 --> 00:36:18,680 And I would be interested in seeing the percentage. 750 00:36:18,680 --> 00:36:22,520 The cost of engineering as a percentage 751 00:36:22,520 --> 00:36:25,200 of the construction costs for the entire project. 752 00:36:25,200 --> 00:36:29,040 Going forward, it's difficult to approve the engineering 753 00:36:29,040 --> 00:36:31,720 if we don't know how it's applied 754 00:36:31,720 --> 00:36:35,560 to the entire cost of the project. 755 00:36:35,560 --> 00:36:39,200 I think you got that earlier. 756 00:36:39,200 --> 00:36:40,280 All right, Tony. 757 00:36:40,280 --> 00:36:41,120 - Yes, sir. 758 00:36:41,120 --> 00:36:42,480 - Okay, all right, thank you. 759 00:36:42,480 --> 00:36:47,360 - And I'd like the water staff 760 00:36:47,360 --> 00:36:50,640 to keep on top of what happened down in Houston 761 00:36:50,640 --> 00:36:52,400 with the, I'm gonna say it wrong, 762 00:36:52,400 --> 00:36:56,480 amoeba getting into the public water system. 763 00:36:56,480 --> 00:37:00,960 And how that, you know, just keep on top of that story. 764 00:37:00,960 --> 00:37:04,520 It's very sad a child lost his life 765 00:37:04,520 --> 00:37:05,720 over something like that. 766 00:37:05,720 --> 00:37:08,200 Anything else? 767 00:37:09,760 --> 00:37:11,640 - All right, then we'll move into work session. 768 00:37:11,640 --> 00:37:14,280 The first item A is receive a report, 769 00:37:14,280 --> 00:37:16,960 hold a discussion and give staff direction 770 00:37:16,960 --> 00:37:19,440 regarding options related to the management 771 00:37:19,440 --> 00:37:22,520 of landfill gas generated at the City of Denton landfill. 772 00:37:22,520 --> 00:37:34,040 - Good morning, Madam Chair, members of the committee. 773 00:37:34,040 --> 00:37:35,000 My name is Brian Burner, 774 00:37:35,000 --> 00:37:37,560 Director of Solid Waste for the City of Denton. 775 00:37:37,560 --> 00:37:39,000 I appreciate the opportunity this morning 776 00:37:39,000 --> 00:37:41,000 to talk a little bit about landfill gas 777 00:37:41,000 --> 00:37:43,600 and what we're doing currently to manage it 778 00:37:43,600 --> 00:37:45,520 and what our proposal is for the future 779 00:37:45,520 --> 00:37:47,320 at the City of Denton. 780 00:37:47,320 --> 00:37:49,760 I really wanna talk about what landfill gas is, 781 00:37:49,760 --> 00:37:51,800 talk about the regulatory environment 782 00:37:51,800 --> 00:37:53,440 that we operate within, 783 00:37:53,440 --> 00:37:56,240 really talk about the current management activities 784 00:37:56,240 --> 00:37:59,840 and then what our options are as we move forward. 785 00:37:59,840 --> 00:38:02,280 You may, let's see, before we get started, 786 00:38:02,280 --> 00:38:04,200 what we do wanna do is to go through 787 00:38:04,200 --> 00:38:05,960 just a real quick primer on some words 788 00:38:05,960 --> 00:38:06,800 we're gonna be using today, 789 00:38:06,800 --> 00:38:11,640 make sure everybody's on the same conversational basis. 790 00:38:11,640 --> 00:38:15,200 First of all, landfill gas, it's produced in the landfill 791 00:38:15,200 --> 00:38:18,120 and it's a byproduct of the natural decomposition 792 00:38:18,120 --> 00:38:19,800 of the organic materials. 793 00:38:19,800 --> 00:38:22,560 So the compressibles, the wood waste, 794 00:38:22,560 --> 00:38:24,000 construction demolition debris 795 00:38:24,000 --> 00:38:26,240 that may be able to degrade, 796 00:38:26,240 --> 00:38:29,080 that material is what manages 797 00:38:29,080 --> 00:38:31,480 or what makes the landfill gas. 798 00:38:31,480 --> 00:38:33,480 It takes anywhere from about one to three years 799 00:38:33,480 --> 00:38:35,320 to start producing the gas 800 00:38:35,320 --> 00:38:37,560 and then about five to seven years before we see, 801 00:38:37,560 --> 00:38:39,840 we see maximum production 802 00:38:39,840 --> 00:38:41,720 as a result of the material that was put in. 803 00:38:41,720 --> 00:38:43,280 So it's about a seven year process 804 00:38:43,280 --> 00:38:47,000 to actually see the gas formed 805 00:38:47,000 --> 00:38:49,880 on what may be put in the landfill today. 806 00:38:49,880 --> 00:38:51,720 We talk about renewable natural gas. 807 00:38:51,720 --> 00:38:54,960 What we're talking about is actually that natural gas 808 00:38:54,960 --> 00:38:57,320 that's derived from the organic material. 809 00:38:57,320 --> 00:39:00,400 So that, beneficially reusing that material 810 00:39:00,400 --> 00:39:01,320 as we move forward. 811 00:39:01,320 --> 00:39:03,680 As a reminder, this is not a fossil fuel, 812 00:39:03,680 --> 00:39:05,080 even though it is methane, 813 00:39:05,080 --> 00:39:07,960 it does not come from a fossil fuel source. 814 00:39:07,960 --> 00:39:12,400 So it is considered renewable, a renewable material. 815 00:39:12,400 --> 00:39:15,000 We talked a little bit about non. 816 00:39:15,000 --> 00:39:15,840 - Can I ask a question? 817 00:39:15,840 --> 00:39:18,880 I need some clarification on this. 818 00:39:18,880 --> 00:39:20,640 May I, is it okay now? 819 00:39:20,640 --> 00:39:23,200 - Yes, and if you can just give us a second 820 00:39:23,200 --> 00:39:25,560 so we can take down the presentation 821 00:39:25,560 --> 00:39:28,200 and then you can ask the question. 822 00:39:28,200 --> 00:39:33,640 - Yes, sir. 823 00:39:33,640 --> 00:39:35,800 - Okay, thank you. 824 00:39:35,800 --> 00:39:38,840 I'm just curious, you did not mention food waste 825 00:39:38,840 --> 00:39:43,840 as one of the producers of methane gas. 826 00:39:43,840 --> 00:39:46,520 And am I making a wrong assumption 827 00:39:46,520 --> 00:39:48,720 that food waste is not involved in this? 828 00:39:48,720 --> 00:39:50,160 - No, food waste is involved in this 829 00:39:50,160 --> 00:39:52,240 but it's part of that pretrustful organic material 830 00:39:52,240 --> 00:39:56,280 that can be converted into renewable landfill gas. 831 00:39:56,280 --> 00:40:01,280 - Okay, and is this so-called renewable natural gas, 832 00:40:02,520 --> 00:40:04,120 it is methane, correct? 833 00:40:04,120 --> 00:40:06,000 - It is methane, correct. 834 00:40:06,000 --> 00:40:10,320 - And does it have the same climate change capacity 835 00:40:10,320 --> 00:40:15,320 as effect on the climate as fossil fuel methane? 836 00:40:15,320 --> 00:40:18,520 - If it is released directly into the land 837 00:40:18,520 --> 00:40:19,960 or into the atmosphere, yes. 838 00:40:19,960 --> 00:40:21,840 But again, based on our requirements 839 00:40:21,840 --> 00:40:23,160 and our control measures, 840 00:40:23,160 --> 00:40:25,560 it is destructed before we get to that point, 841 00:40:25,560 --> 00:40:26,400 either through the flare or through- 842 00:40:26,400 --> 00:40:28,480 - Okay, I'm just gonna make the point 843 00:40:28,480 --> 00:40:30,640 that methane is methane. 844 00:40:30,640 --> 00:40:35,640 And giving this euphemistic term of renewable natural gas 845 00:40:35,640 --> 00:40:37,920 is really a misnomer. 846 00:40:37,920 --> 00:40:40,280 We need to call it what it is. 847 00:40:40,280 --> 00:40:44,760 - Again, this is the EPA's verbiage for this material 848 00:40:44,760 --> 00:40:45,600 and that's what I care for. 849 00:40:45,600 --> 00:40:48,800 - I understand that, but you understand 850 00:40:48,800 --> 00:40:51,640 the political implications of putting the word renewable 851 00:40:51,640 --> 00:40:54,320 in front of what is basically a fossil fuel. 852 00:40:54,320 --> 00:40:57,320 Because it has the same impact on climate 853 00:40:57,320 --> 00:41:02,320 as the methane that comes out with drilling and fracking. 854 00:41:02,320 --> 00:41:04,440 I mean, it's that simple. 855 00:41:04,440 --> 00:41:06,280 So I just wanted to make that clarification 856 00:41:06,280 --> 00:41:09,040 because in doing some research, 857 00:41:09,040 --> 00:41:11,280 just as a matter of fact, 858 00:41:11,280 --> 00:41:16,040 the gas industry is very much promoting this idea 859 00:41:16,040 --> 00:41:21,320 simply because of the current business profile 860 00:41:21,320 --> 00:41:22,800 of the natural gas industry. 861 00:41:22,800 --> 00:41:24,280 It's not in good shape. 862 00:41:24,280 --> 00:41:27,680 And this is another way of trying to prop up the industry. 863 00:41:27,680 --> 00:41:29,240 And I don't say that. 864 00:41:29,240 --> 00:41:30,920 I mean, that's a fact. 865 00:41:30,920 --> 00:41:32,880 That's what I found in my research. 866 00:41:32,880 --> 00:41:34,560 So I just don't want people to think 867 00:41:34,560 --> 00:41:38,360 that because this is called renewable natural gas, 868 00:41:38,360 --> 00:41:41,320 that it's pure and safe. 869 00:41:41,320 --> 00:41:44,000 And you know what I mean. 870 00:41:44,000 --> 00:41:45,400 People can get the wrong impression 871 00:41:45,400 --> 00:41:48,560 just by the addition of that word renewable. 872 00:41:48,560 --> 00:41:49,520 Thank you. 873 00:41:49,520 --> 00:41:50,360 - Thank you. 874 00:41:50,360 --> 00:41:53,720 All right, to continue. 875 00:41:53,720 --> 00:41:54,560 - Proceed. 876 00:41:54,560 --> 00:42:05,080 - We were talking a little bit 877 00:42:05,080 --> 00:42:07,760 about non-methane volatile organic chemicals. 878 00:42:07,760 --> 00:42:10,600 So this is the variety of chemicals that are different, 879 00:42:10,600 --> 00:42:13,360 you know, that basically are different organic compounds 880 00:42:13,360 --> 00:42:14,280 other than methane. 881 00:42:14,280 --> 00:42:18,040 So as methane is destroyed by either our flare or engine 882 00:42:18,040 --> 00:42:20,760 or some other source, the emission profile, 883 00:42:20,760 --> 00:42:23,240 we talk about the other organic compounds 884 00:42:23,240 --> 00:42:26,480 that may be produced as a result of that destruction. 885 00:42:26,480 --> 00:42:29,760 We'll also be talking a little bit about RENS and RECs. 886 00:42:29,760 --> 00:42:31,480 I know that we've talked a lot about RECs 887 00:42:31,480 --> 00:42:34,960 as we're talking with our, through DME. 888 00:42:34,960 --> 00:42:36,000 And as we move forward, 889 00:42:36,000 --> 00:42:37,280 we're gonna be talking a little bit 890 00:42:37,280 --> 00:42:40,520 about some potential RENS and RECs 891 00:42:40,520 --> 00:42:42,960 as a result of what we do at the landfill. 892 00:42:42,960 --> 00:42:44,320 We talk about RENS, 893 00:42:44,320 --> 00:42:47,560 specifically applied to renewable fuels 894 00:42:47,560 --> 00:42:49,920 and appropriate environmental credits as such. 895 00:42:49,920 --> 00:42:51,240 And again, when we talk about RECs, 896 00:42:51,240 --> 00:42:55,520 we're talking about the generation of energy 897 00:42:55,520 --> 00:42:58,640 and the trading of those renewable energy credits. 898 00:42:58,640 --> 00:43:00,640 So they're basically the same thing 899 00:43:00,640 --> 00:43:03,760 except RENS are tied to fuel, RECs are tied to energy. 900 00:43:03,760 --> 00:43:06,560 So what is landfill gas? 901 00:43:06,560 --> 00:43:11,000 Again, it's produced in the landfill itself. 902 00:43:11,000 --> 00:43:14,800 You'll notice that it starts with the waste 903 00:43:14,800 --> 00:43:16,640 that is in the landfill. 904 00:43:16,640 --> 00:43:21,640 We have wells, the methane is collected through headers. 905 00:43:21,640 --> 00:43:25,840 It comes through a vacuum at where it may be flared 906 00:43:25,840 --> 00:43:28,640 or used for some beneficial reuse. 907 00:43:28,640 --> 00:43:32,400 Currently, we have a generator at the facility 908 00:43:32,400 --> 00:43:34,440 producing about 1.6 megawatt 909 00:43:34,440 --> 00:43:39,440 and it's used to provide energy to city of Denton homes. 910 00:43:39,440 --> 00:43:42,800 However, there are other options and opportunities 911 00:43:42,800 --> 00:43:45,400 for methane to be used, 912 00:43:45,400 --> 00:43:47,680 whether it's what we call low BTU, 913 00:43:47,680 --> 00:43:51,080 where it's used for heat in some industrial source, 914 00:43:51,080 --> 00:43:56,080 arts and crafts, just something to burn for the heat value 915 00:43:56,080 --> 00:43:59,160 or we can further refine it into high BTU gas 916 00:43:59,160 --> 00:44:00,480 where it's put into a pipeline 917 00:44:00,480 --> 00:44:02,280 and maybe used for vehicle fuel, 918 00:44:02,280 --> 00:44:05,040 maybe used in your home for your hot water heater 919 00:44:05,040 --> 00:44:06,520 or your stove or anything else. 920 00:44:06,520 --> 00:44:09,600 So we're taking the existing landfill gas 921 00:44:09,600 --> 00:44:13,080 and purifying it and making it just beneficially reusable 922 00:44:13,080 --> 00:44:15,040 in the neighborhood. 923 00:44:15,040 --> 00:44:17,360 When you currently look at what's happening 924 00:44:17,360 --> 00:44:20,800 to our landfill gas or the composition of our landfill gas, 925 00:44:20,800 --> 00:44:24,560 we have about 53% that is methane only 926 00:44:24,560 --> 00:44:27,000 or that's what the composition of the gas is. 927 00:44:27,000 --> 00:44:31,400 About 38% of that gas is carbon dioxide 928 00:44:31,400 --> 00:44:33,600 and the remaining 9% is oxygen 929 00:44:33,600 --> 00:44:35,400 and other what we call balanced gases. 930 00:44:35,400 --> 00:44:38,200 So nitrogen and hydrogen sulfide 931 00:44:38,200 --> 00:44:43,200 and other gases that occur as a result of the decomposition 932 00:44:44,440 --> 00:44:46,120 of the organic waste in the material. 933 00:44:46,120 --> 00:44:49,320 So again, this is what our landfill gas component 934 00:44:49,320 --> 00:44:50,160 looks like. 935 00:44:50,160 --> 00:44:55,000 Currently we're burning this unfiltered, untreated 936 00:44:55,000 --> 00:44:58,120 and our engines allow us to do this 937 00:44:58,120 --> 00:45:00,560 but depending on how we decide to manage our gas 938 00:45:00,560 --> 00:45:02,440 in the future, we may have to treat it 939 00:45:02,440 --> 00:45:03,920 in some way, shape or form. 940 00:45:03,920 --> 00:45:07,600 Landfill gas management is very heavily regulated 941 00:45:07,600 --> 00:45:12,600 into sub activity of what we do at the landfill. 942 00:45:13,800 --> 00:45:16,720 Currently both state and federal law require us 943 00:45:16,720 --> 00:45:18,960 to have plans and programs in place 944 00:45:18,960 --> 00:45:20,800 to capture that gas and manage it. 945 00:45:20,800 --> 00:45:24,280 Our permit also requires us to have a program in place 946 00:45:24,280 --> 00:45:25,560 to manage the gas. 947 00:45:25,560 --> 00:45:29,080 We also have permits and registrations 948 00:45:29,080 --> 00:45:32,240 to run the electric facility that we have out there 949 00:45:32,240 --> 00:45:35,200 as well as maintain the gas flare that is on the site. 950 00:45:35,200 --> 00:45:39,320 Currently our landfill gas is managed by, 951 00:45:39,320 --> 00:45:44,080 we have 110 wells in the landfill right now proper 952 00:45:44,080 --> 00:45:45,560 that is currently collecting gas 953 00:45:45,560 --> 00:45:48,480 from the waste mass that is in place. 954 00:45:48,480 --> 00:45:51,880 About a month ago, DME bought the assets 955 00:45:51,880 --> 00:45:53,440 and the company from DTE, 956 00:45:53,440 --> 00:45:56,720 which operates our landfills gas to energy facility 957 00:45:56,720 --> 00:45:58,720 where we power an engine that turns a generator, 958 00:45:58,720 --> 00:46:03,720 again, generating about 1.6 megawatts of energy from that. 959 00:46:03,720 --> 00:46:09,240 We are nearing the end of life on this facility. 960 00:46:09,440 --> 00:46:11,520 When we first contracted with DTE, 961 00:46:11,520 --> 00:46:15,920 the contractor was to run through 2024. 962 00:46:15,920 --> 00:46:19,080 And this is sort of a perfect storm. 963 00:46:19,080 --> 00:46:23,360 Prior to DME acquiring the DTE assets, 964 00:46:23,360 --> 00:46:26,000 we were thinking about what the long-term use would be 965 00:46:26,000 --> 00:46:31,000 after 2024 and we had actually started some planning work 966 00:46:31,000 --> 00:46:34,240 for what we might have to do in this next three years 967 00:46:34,240 --> 00:46:35,600 to ensure that we're managing 968 00:46:35,600 --> 00:46:37,840 our landfill gas appropriately. 969 00:46:38,720 --> 00:46:41,240 DTE, DME currently owns the facility 970 00:46:41,240 --> 00:46:43,520 and we're working with them in this next step. 971 00:46:43,520 --> 00:46:46,520 Even though we have a landfill gas 972 00:46:46,520 --> 00:46:49,280 to energy generator on the site, 973 00:46:49,280 --> 00:46:54,080 we generate more methane than what the engine can use. 974 00:46:54,080 --> 00:46:57,120 So we have a candlestick flare on the site 975 00:46:57,120 --> 00:47:00,760 to manage excess gas, burn it off. 976 00:47:00,760 --> 00:47:04,440 And then also when the generator is down for maintenance 977 00:47:04,440 --> 00:47:06,360 or other repair, 978 00:47:06,360 --> 00:47:08,840 then the candlestick flare that's on the site 979 00:47:08,840 --> 00:47:11,840 is sized appropriately to manage 100% of the gas, 980 00:47:11,840 --> 00:47:14,840 to flare 100% of the gas that's at the site. 981 00:47:14,840 --> 00:47:18,840 Currently the city of Denton Solid Waste Recycling, 982 00:47:18,840 --> 00:47:21,120 we do receive an annual rent payment revenue share 983 00:47:21,120 --> 00:47:24,920 of about $145,000 a year as a result of this activity. 984 00:47:24,920 --> 00:47:27,440 And as I've stated on several times already, 985 00:47:27,440 --> 00:47:30,280 the power that's generated is used by Denton residents 986 00:47:30,280 --> 00:47:33,400 to power their homes and with the electricity. 987 00:47:34,440 --> 00:47:36,920 Currently the city of Denton Landfill generates 988 00:47:36,920 --> 00:47:41,440 about 360,000 cubic feet of landfill gas per year. 989 00:47:41,440 --> 00:47:45,160 In the 2018 Landfill Gas Emission Report, 990 00:47:45,160 --> 00:47:49,200 we noted an increase of about 6.8% of generation. 991 00:47:49,200 --> 00:47:53,000 That means, and as a result of us putting additional wells 992 00:47:53,000 --> 00:47:54,640 in this, excuse me, 993 00:47:54,640 --> 00:47:59,640 as a result of anticipated increased waste acceptance, 994 00:47:59,880 --> 00:48:04,880 or regional growth, regional waste transport dynamics, 995 00:48:04,880 --> 00:48:10,200 that is what is driving that calculation. 996 00:48:10,200 --> 00:48:13,360 Now, again, this methane stays in place in the landfill 997 00:48:13,360 --> 00:48:14,600 until it's extracted. 998 00:48:14,600 --> 00:48:17,080 So even though we may be generating anymore, 999 00:48:17,080 --> 00:48:20,360 it's remaining in place and not getting into the atmosphere. 1000 00:48:20,360 --> 00:48:22,400 When you look at the emission capture, 1001 00:48:22,400 --> 00:48:25,760 we've actually increased that by 31% over 2017. 1002 00:48:25,760 --> 00:48:27,320 And again, that's due to the increased number 1003 00:48:27,320 --> 00:48:31,320 of extraction wells we installed earlier this year. 1004 00:48:31,320 --> 00:48:32,800 You may remember there was a contract 1005 00:48:32,800 --> 00:48:35,760 to install 15 additional wells at the facility. 1006 00:48:35,760 --> 00:48:38,840 We've increased the size of the header and as a result, 1007 00:48:38,840 --> 00:48:42,360 we've been able to capture and manage the gas 1008 00:48:42,360 --> 00:48:43,280 that we are producing. 1009 00:48:43,280 --> 00:48:48,280 And again, the landfill gas to energy generator 1010 00:48:48,280 --> 00:48:50,200 was already running at capacity. 1011 00:48:50,200 --> 00:48:53,280 So these emissions are destroyed through the flare. 1012 00:48:53,280 --> 00:48:57,160 And again, the remaining through the engine. 1013 00:48:57,160 --> 00:48:59,120 Do need to underline that Denton is compliant 1014 00:48:59,120 --> 00:49:00,800 with its landfill permit requirements, 1015 00:49:00,800 --> 00:49:04,360 as well as the federal and state landfill gas 1016 00:49:04,360 --> 00:49:06,800 management requirements with the activities 1017 00:49:06,800 --> 00:49:08,560 that we currently are using. 1018 00:49:08,560 --> 00:49:13,960 As I stated a couple of minutes ago, 1019 00:49:13,960 --> 00:49:15,680 in this three year period, 1020 00:49:15,680 --> 00:49:18,040 before the end of the DTE contract, 1021 00:49:18,040 --> 00:49:20,240 we knew that there were different options 1022 00:49:20,240 --> 00:49:21,600 to potentially manage our gas. 1023 00:49:21,600 --> 00:49:26,600 And as the landfill continues to fill and generate gas, 1024 00:49:26,880 --> 00:49:29,040 we wanted to make sure that we were using, 1025 00:49:29,040 --> 00:49:34,040 managing the landfill gas that is in the most appropriate 1026 00:49:34,040 --> 00:49:37,160 and environmentally sensitive manner that we could. 1027 00:49:37,160 --> 00:49:41,080 We went out and we hired SCS engineers to evaluate options 1028 00:49:41,080 --> 00:49:45,200 based on what our historic landfill gas generation profile 1029 00:49:45,200 --> 00:49:47,720 has been as well as what our projection is going forward 1030 00:49:47,720 --> 00:49:51,360 to the end of life on our current landfill permit. 1031 00:49:51,360 --> 00:49:54,320 What they've done is reviewed landfill gas generation 1032 00:49:54,320 --> 00:49:58,120 for the next 20 years, and they did an economic 1033 00:49:58,120 --> 00:50:00,600 and technical screening of the alternatives. 1034 00:50:00,600 --> 00:50:02,840 And basically we find that, 1035 00:50:02,840 --> 00:50:05,120 when you look at these alternatives out there, 1036 00:50:05,120 --> 00:50:07,400 electric generation like we're currently doing, 1037 00:50:07,400 --> 00:50:09,120 medium BTU and high BTU 1038 00:50:09,120 --> 00:50:11,560 for natural gas pipeline injection. 1039 00:50:11,560 --> 00:50:13,680 What they found looking through this 1040 00:50:13,680 --> 00:50:15,480 and through the calculations is that 1041 00:50:15,480 --> 00:50:17,480 we do have sufficient landfill gas 1042 00:50:17,480 --> 00:50:19,520 to support beneficial reuse. 1043 00:50:19,520 --> 00:50:23,720 But when you look at the financial portion of this, 1044 00:50:23,720 --> 00:50:27,600 really only flaring and high BTU management 1045 00:50:27,600 --> 00:50:29,520 are financially viable. 1046 00:50:29,520 --> 00:50:32,280 Meaning that there's no subsidy that is required 1047 00:50:32,280 --> 00:50:36,800 from any city of Denton rate payer to support or drive 1048 00:50:36,800 --> 00:50:40,200 that management process. 1049 00:50:40,200 --> 00:50:43,920 And we'll discuss the economics here in just a minute. 1050 00:50:43,920 --> 00:50:47,360 And when you look at the return on investment for high BTU, 1051 00:50:47,360 --> 00:50:51,000 it's driven by what our current natural landfill, 1052 00:50:51,000 --> 00:50:54,480 or excuse me, what the current natural gas prices are, 1053 00:50:54,480 --> 00:50:57,840 as well as what the rent and rec market are currently doing. 1054 00:50:57,840 --> 00:51:01,120 So again, there's a lot of moving parts here. 1055 00:51:01,120 --> 00:51:02,800 When we look at what our options are, 1056 00:51:02,800 --> 00:51:05,040 again, flaring, we're gonna burn it. 1057 00:51:05,040 --> 00:51:07,360 Landfill gas to energy, we're gonna generate 1058 00:51:07,360 --> 00:51:10,800 as much electricity from a generator on site 1059 00:51:10,800 --> 00:51:13,280 and then burn any excess in our flare. 1060 00:51:13,280 --> 00:51:16,000 From a medium BTU standpoint, we did not consider that 1061 00:51:16,000 --> 00:51:18,120 only because based on current zoning 1062 00:51:18,120 --> 00:51:20,840 and current industry in the area, 1063 00:51:20,840 --> 00:51:22,760 there really is no local industry 1064 00:51:22,760 --> 00:51:24,960 that would be able to use this heat. 1065 00:51:24,960 --> 00:51:26,120 And in addition to that, 1066 00:51:26,120 --> 00:51:28,040 it would require stability mute pipeline, 1067 00:51:28,040 --> 00:51:32,880 which would require additional right of way acquisition 1068 00:51:32,880 --> 00:51:35,160 and we would still need to flare. 1069 00:51:35,160 --> 00:51:38,280 So, and then from the high BTU standpoint, again, 1070 00:51:38,280 --> 00:51:42,640 we're scrubbing the landfill gas to make it 99.94% methane 1071 00:51:42,640 --> 00:51:46,960 or better pipeline quality injected into the pipeline. 1072 00:51:46,960 --> 00:51:48,840 And again, beneficially reused in the homes 1073 00:51:48,840 --> 00:51:52,240 of Denton residents, cooking, vehicle fuel, 1074 00:51:52,240 --> 00:51:54,400 hot water, things of that nature. 1075 00:51:54,400 --> 00:51:56,880 What I do need to underline here, 1076 00:51:56,880 --> 00:52:00,680 regardless of the option that we choose to go forward with, 1077 00:52:00,680 --> 00:52:03,600 a flare will always be required at the landfill. 1078 00:52:03,600 --> 00:52:06,640 First of all, it is a regulatory requirement, 1079 00:52:06,640 --> 00:52:09,560 but secondarily, it is efficient for managing 1080 00:52:09,560 --> 00:52:13,520 any of the gas that either may be excess 1081 00:52:13,520 --> 00:52:17,320 or as a result of maintenance on any of the facilities 1082 00:52:17,320 --> 00:52:19,480 that we, as we move forward. 1083 00:52:19,480 --> 00:52:23,880 This is really a telling graph 1084 00:52:23,880 --> 00:52:27,400 because it talks about the relative cost, 1085 00:52:27,400 --> 00:52:31,640 net cost of our different options here, 1086 00:52:31,640 --> 00:52:34,360 coupled with the environmental benefits 1087 00:52:34,360 --> 00:52:35,800 of these alternatives. 1088 00:52:35,800 --> 00:52:38,680 Along your X axis here, to the left side, 1089 00:52:38,680 --> 00:52:41,000 you've got a very, very high environmental impact, 1090 00:52:41,000 --> 00:52:45,320 very high emitting opportunity. 1091 00:52:45,320 --> 00:52:50,000 As you move to the right, the environmental impacts decrease 1092 00:52:50,000 --> 00:52:55,000 from the Y axis, very low cost, net cost to residents, 1093 00:52:55,000 --> 00:52:59,400 meaning it'll be either be cost neutral 1094 00:52:59,400 --> 00:53:02,360 or actually generate revenue for the city 1095 00:53:02,360 --> 00:53:05,240 up to a very high control cost, 1096 00:53:05,240 --> 00:53:07,320 which would mean there'd be sufficient subsidy 1097 00:53:07,320 --> 00:53:10,800 by Denton rate payers, depending on that option. 1098 00:53:10,800 --> 00:53:13,360 Our current option is our landfill 1099 00:53:13,360 --> 00:53:16,320 electric generation facility. 1100 00:53:16,320 --> 00:53:20,080 It is expensive to do, very high on the maintenance, 1101 00:53:20,080 --> 00:53:22,720 and as a result, it is very, very costly, 1102 00:53:22,720 --> 00:53:27,200 and as you can see here, fairly high environmental impact. 1103 00:53:27,200 --> 00:53:30,400 As you move forward, again, we're not gonna be evaluating 1104 00:53:30,400 --> 00:53:33,880 medium BTU because we don't have a customer to do that, 1105 00:53:33,880 --> 00:53:38,520 which leads us to either flaring or high BTU 1106 00:53:38,520 --> 00:53:41,480 from a cost benefit analysis 1107 00:53:41,480 --> 00:53:44,840 related to environmental benefit and fiscal cost. 1108 00:53:44,840 --> 00:53:48,520 On your high BTU, which again is the program 1109 00:53:48,520 --> 00:53:51,120 we're gonna be recommending at the end of this presentation, 1110 00:53:51,120 --> 00:53:53,640 it has a very high upfront cost, 1111 00:53:53,640 --> 00:53:57,320 but again, over the life of the project itself, 1112 00:53:57,320 --> 00:53:59,480 it has the lowest net cost because again, 1113 00:53:59,480 --> 00:54:02,240 we have a sale and a rent and a rec 1114 00:54:02,240 --> 00:54:04,200 that will help subsidize this outside 1115 00:54:04,200 --> 00:54:06,640 of city of Denton rate payers. 1116 00:54:08,080 --> 00:54:12,640 From a relative emission of our options as we move forward, 1117 00:54:12,640 --> 00:54:15,400 you can see that between the flare and the engine 1118 00:54:15,400 --> 00:54:18,560 and the high BTU, the high BTU facility again, 1119 00:54:18,560 --> 00:54:23,120 is the lowest emitting from the process itself. 1120 00:54:23,120 --> 00:54:25,840 The high BTU does not take into account the end use, 1121 00:54:25,840 --> 00:54:29,040 whether it's at your stove, at your hot water heater, 1122 00:54:29,040 --> 00:54:30,920 whatever the vehicle that's using it, 1123 00:54:30,920 --> 00:54:33,960 this is actually the process itself. 1124 00:54:33,960 --> 00:54:37,240 And again, this evaluation is based on 1125 00:54:37,240 --> 00:54:41,240 our approximately 36,000 cubic feet of landfill gas 1126 00:54:41,240 --> 00:54:42,760 that we produce in any given year. 1127 00:54:42,760 --> 00:54:45,880 So as a result of this, we would anticipate 1128 00:54:45,880 --> 00:54:49,400 that only 2.75 tons of carbon monoxide 1129 00:54:49,400 --> 00:54:52,840 would be generated from the conversion 1130 00:54:52,840 --> 00:54:56,440 of that 36,000 cubic feet and so on and so forth. 1131 00:54:56,440 --> 00:54:59,840 From the flare operations, again, 1132 00:54:59,840 --> 00:55:04,080 federal and state law require that we have a flare on site 1133 00:55:04,080 --> 00:55:05,400 and it'd be operated. 1134 00:55:05,400 --> 00:55:10,400 It is currently sized to manage the complete build out 1135 00:55:10,400 --> 00:55:14,360 of our existing landfill permit, 1590A. 1136 00:55:14,360 --> 00:55:18,680 Should the city be successful in obtaining its expansion 1137 00:55:18,680 --> 00:55:22,280 for its 1590B, then the installation of a second flare 1138 00:55:22,280 --> 00:55:24,920 or a larger flare will be required to manage 1139 00:55:24,920 --> 00:55:28,080 the landfill gas that will ultimately be generated 1140 00:55:28,080 --> 00:55:29,800 at that facility. 1141 00:55:29,800 --> 00:55:33,560 Again, if we're looking at from a flaring standpoint 1142 00:55:33,560 --> 00:55:36,160 by each control technology, if we're only operating 1143 00:55:36,160 --> 00:55:39,760 a flare, then it will operate 24/7, 365. 1144 00:55:39,760 --> 00:55:43,200 If we're looking at landfill gas to energy, 1145 00:55:43,200 --> 00:55:46,000 again, it will continuously operate 1146 00:55:46,000 --> 00:55:48,920 only because we have to flare the excess gas 1147 00:55:48,920 --> 00:55:51,400 that we cannot currently use to run a second engine. 1148 00:55:51,400 --> 00:55:53,840 And based on current growth curves, 1149 00:55:53,840 --> 00:55:56,880 it suggests that it would be at least 20, 25 1150 00:55:56,880 --> 00:55:59,720 before we would have sufficient reliable gas 1151 00:55:59,720 --> 00:56:03,240 to put input a second engine at the facility. 1152 00:56:03,240 --> 00:56:06,280 Bringing this back to medium or actually high BTU plant, 1153 00:56:06,280 --> 00:56:08,040 we would estimate that the flare would operate 1154 00:56:08,040 --> 00:56:10,640 less than 1% of the time and really only 1155 00:56:10,640 --> 00:56:13,080 during maintenance startup and shutdown. 1156 00:56:13,080 --> 00:56:15,760 Ideally, you wanna capture every molecule of gas 1157 00:56:15,760 --> 00:56:19,120 that's produced, put it in a pipeline for beneficial reuse 1158 00:56:19,120 --> 00:56:20,320 at the end of the day. 1159 00:56:20,320 --> 00:56:23,800 When you look at the cost benefit analysis, 1160 00:56:23,800 --> 00:56:28,720 again, a lot of the cost for a high BTU facility 1161 00:56:28,720 --> 00:56:33,520 is an upfront capital cost of about $23 million. 1162 00:56:33,520 --> 00:56:36,080 And there's options for the city to operate, 1163 00:56:36,080 --> 00:56:39,680 own and operate it ourselves to contract with the third party. 1164 00:56:39,680 --> 00:56:41,360 But again, you'll see that the rate of return, 1165 00:56:41,360 --> 00:56:45,240 net present value on these facilities 1166 00:56:45,240 --> 00:56:49,520 is fairly impressive. 1167 00:56:49,520 --> 00:56:52,200 If the city owned and operated its own facility, 1168 00:56:52,200 --> 00:56:55,920 we would anticipate that the net present value 1169 00:56:55,920 --> 00:56:58,600 would be about $18 million. 1170 00:56:58,600 --> 00:57:01,360 Third party and paying royalties back to the city, 1171 00:57:01,360 --> 00:57:05,000 that would drop to about $1.5 million, 1172 00:57:05,000 --> 00:57:07,600 only because again, the bonding and the indebtedness 1173 00:57:07,600 --> 00:57:10,560 on the front end by that third party taking those risks, 1174 00:57:10,560 --> 00:57:12,080 it would significantly reduce the amount 1175 00:57:12,080 --> 00:57:15,920 that we would be able to recover. 1176 00:57:15,920 --> 00:57:19,480 From the city's own electric generator, 1177 00:57:19,480 --> 00:57:21,640 again, you'll see that over the over 10 year, 1178 00:57:21,640 --> 00:57:26,640 there's a net negative value in that 1179 00:57:26,920 --> 00:57:28,520 only because of the price of operation, 1180 00:57:28,520 --> 00:57:31,520 as well as the cost of the gas and the energy. 1181 00:57:31,520 --> 00:57:35,560 And as a result, we don't propose that we move forward 1182 00:57:35,560 --> 00:57:37,920 with the electric generator. 1183 00:57:37,920 --> 00:57:42,000 Based on what we anticipate average annual income, 1184 00:57:42,000 --> 00:57:44,800 if the city owned the high BTU facility, 1185 00:57:44,800 --> 00:57:46,440 we'd anticipate a net income 1186 00:57:46,440 --> 00:57:48,640 of about $2.5 million a year. 1187 00:57:48,640 --> 00:57:52,400 If we had a third party own it and operate it 1188 00:57:52,400 --> 00:57:53,360 and pay us royalty back, 1189 00:57:53,360 --> 00:57:56,320 that dropped us down to about $200,000 a year. 1190 00:57:56,320 --> 00:57:59,760 However, looking down to about 20 years, 1191 00:57:59,760 --> 00:58:02,400 if we took this out to 20 years, 1192 00:58:02,400 --> 00:58:06,040 that third party royalty would jump up to about 1.75. 1193 00:58:06,040 --> 00:58:10,040 And again, that's a result of the upfront cost to build 1194 00:58:10,040 --> 00:58:12,000 and the debt service on that. 1195 00:58:12,000 --> 00:58:17,200 Again, as we look at high BTU facilities, 1196 00:58:17,200 --> 00:58:19,720 the major variables from an economic standpoint, 1197 00:58:19,720 --> 00:58:23,040 again, the price of gas on the open market, 1198 00:58:23,040 --> 00:58:24,720 the rents and the wrecks that are out there, 1199 00:58:24,720 --> 00:58:28,000 how much those would be able to cost. 1200 00:58:28,000 --> 00:58:29,920 And again, capital cost, 1201 00:58:29,920 --> 00:58:32,600 again, upfront is about $26 million to build 1202 00:58:32,600 --> 00:58:35,000 or site one of these facilities. 1203 00:58:35,000 --> 00:58:40,000 Depending on, and this does not include the cost of a flare 1204 00:58:40,000 --> 00:58:41,680 or any gathering system, 1205 00:58:41,680 --> 00:58:44,280 because again, that we're required to have that system 1206 00:58:44,280 --> 00:58:47,560 regardless of which path we go down. 1207 00:58:47,560 --> 00:58:49,120 So we did not include that cost 1208 00:58:49,120 --> 00:58:51,680 in the evaluation moving forward. 1209 00:58:52,760 --> 00:58:56,120 As a go forward, staff is gonna recommend 1210 00:58:56,120 --> 00:59:00,200 that we would develop a high BTU at this high BTU facility 1211 00:59:00,200 --> 00:59:01,960 at the city of Denton landfill 1212 00:59:01,960 --> 00:59:06,200 and actually prepare an RFP to identify a third party 1213 00:59:06,200 --> 00:59:09,960 to own and operate the facility as we move forward. 1214 00:59:09,960 --> 00:59:12,560 Again, supporting our long-term vision 1215 00:59:12,560 --> 00:59:14,000 of the solid waste program, 1216 00:59:14,000 --> 00:59:15,880 minimizing environmental impacts 1217 00:59:15,880 --> 00:59:19,240 and creating a high probability of return on investment 1218 00:59:19,240 --> 00:59:20,960 to the city of Denton landfill. 1219 00:59:20,960 --> 00:59:23,680 In this time, we would also work to shut down 1220 00:59:23,680 --> 00:59:25,800 the existing electric generation facility 1221 00:59:25,800 --> 00:59:27,640 only because it is end of life 1222 00:59:27,640 --> 00:59:30,240 and the cost to rate payers is significant. 1223 00:59:30,240 --> 00:59:32,560 And we would flare the existing gas 1224 00:59:32,560 --> 00:59:35,840 while we're trying to bring a new system up. 1225 00:59:35,840 --> 00:59:37,720 We anticipate it would take about one and a half 1226 00:59:37,720 --> 00:59:41,160 to three years to bring up a high BTU facility. 1227 00:59:41,160 --> 00:59:42,800 We would have to go through engineering, 1228 00:59:42,800 --> 00:59:45,800 preparation of RFP, the design, the construction, 1229 00:59:45,800 --> 00:59:48,000 the permitting, and then facility startup. 1230 00:59:48,000 --> 00:59:49,880 And depending on whether we're using a package plant 1231 00:59:49,880 --> 00:59:53,480 or we're building a basically a greenfield facility 1232 00:59:53,480 --> 00:59:58,480 from dirt to a fixed construction site, 1233 00:59:58,480 --> 01:00:00,880 that's what the variable is on that. 1234 01:00:00,880 --> 01:00:04,000 So that is what our recommendation is. 1235 01:00:04,000 --> 01:00:04,840 And at this point, 1236 01:00:04,840 --> 01:00:07,000 I'd like to open it up for discussion 1237 01:00:07,000 --> 01:00:10,120 and ultimate direction supporting this proposal. 1238 01:00:10,120 --> 01:00:14,480 - All right, question. 1239 01:00:14,480 --> 01:00:16,360 Karen had her hand up first. 1240 01:00:16,360 --> 01:00:17,200 - Okay. 1241 01:00:17,200 --> 01:00:22,200 - I just had a quick typo on page six, 1242 01:00:22,200 --> 01:00:27,640 we've got the 360,000, 1243 01:00:27,640 --> 01:00:31,320 the amount of gas that's generated. 1244 01:00:31,320 --> 01:00:37,720 On slide six, you've got 350,000, thousand. 1245 01:00:37,720 --> 01:00:39,600 - Okay. 1246 01:00:39,600 --> 01:00:41,440 - You might wanna get rid of the extra thousand 1247 01:00:41,440 --> 01:00:43,080 'cause that's gonna be confusing. 1248 01:00:46,520 --> 01:00:49,240 - Thank you for catching up, we apologize. 1249 01:00:49,240 --> 01:00:51,760 - Yeah, Brian, good presentation. 1250 01:00:51,760 --> 01:00:56,760 One suggestion, I didn't see the initial upfront capital 1251 01:00:56,760 --> 01:01:01,920 outlay of, I think you said 26 million for this facility. 1252 01:01:01,920 --> 01:01:05,080 You might wanna add that somewhere to your presentation 1253 01:01:05,080 --> 01:01:07,920 because when I first looked at the numbers, 1254 01:01:07,920 --> 01:01:12,240 I thought, gee, $18 million is better than $1 million. 1255 01:01:12,240 --> 01:01:14,560 So why don't we go with the 18 million? 1256 01:01:14,560 --> 01:01:17,040 But when you throw in the upfront capital cost, 1257 01:01:17,040 --> 01:01:19,440 that explains that better. 1258 01:01:19,440 --> 01:01:23,400 Second thing, do you have any idea 1259 01:01:23,400 --> 01:01:26,160 of what the physical size or the footprint 1260 01:01:26,160 --> 01:01:28,520 for this facility would have to be? 1261 01:01:28,520 --> 01:01:35,560 - We would anticipate it would be about an acre and a half. 1262 01:01:35,560 --> 01:01:37,880 - Okay. 1263 01:01:37,880 --> 01:01:42,600 - And the capital cost is on slide 13. 1264 01:01:43,480 --> 01:01:44,960 - Okay, I guess I missed that. 1265 01:01:44,960 --> 01:01:49,320 - Yeah, 'cause I went $26.1 million. 1266 01:01:49,320 --> 01:01:53,120 Yes, Ed, go ahead. 1267 01:01:53,120 --> 01:01:54,800 And then Charlie. 1268 01:01:54,800 --> 01:01:59,800 - Yeah, I went back and I looked at the TCEQ permit 1269 01:01:59,800 --> 01:02:05,480 application that Brian referenced, the 1590B. 1270 01:02:05,480 --> 01:02:10,800 And I saw in there that the city completed 1271 01:02:10,800 --> 01:02:14,840 what was called SSO, which is a source-separated 1272 01:02:14,840 --> 01:02:19,840 organics composting pilot study in early 2011. 1273 01:02:19,840 --> 01:02:25,720 And subsequently, they were able to operate this facility 1274 01:02:25,720 --> 01:02:32,520 effective January 9th, 2012. 1275 01:02:32,520 --> 01:02:36,200 And it says that the city receives SSO materials, 1276 01:02:36,200 --> 01:02:39,800 that is source-separated organic materials, 1277 01:02:39,800 --> 01:02:43,720 such as produce, meats, beverages, 1278 01:02:43,720 --> 01:02:48,240 and other vegetative materials, such as yard waste, 1279 01:02:48,240 --> 01:02:51,880 at its organics composting facility. 1280 01:02:51,880 --> 01:02:55,920 My question is, is the city currently operating 1281 01:02:55,920 --> 01:03:00,000 a composting facility that takes food waste 1282 01:03:00,000 --> 01:03:01,640 as a major component? 1283 01:03:01,640 --> 01:03:05,040 - Not as a major component. 1284 01:03:05,040 --> 01:03:06,560 In our current yard waste program, 1285 01:03:06,560 --> 01:03:09,640 you can use vegetable clippings and things of that nature, 1286 01:03:09,640 --> 01:03:11,920 but no post-consumer material. 1287 01:03:11,920 --> 01:03:16,320 Part of what our permit application under 1590B 1288 01:03:16,320 --> 01:03:19,360 allows us to do is take that information 1289 01:03:19,360 --> 01:03:21,960 that was obtained from the pilot program 1290 01:03:21,960 --> 01:03:24,360 that was established and make it a permanent facility. 1291 01:03:24,360 --> 01:03:27,760 So it allows us the permitting to do it full-time 1292 01:03:27,760 --> 01:03:31,280 going forward once the permit is awarded. 1293 01:03:31,280 --> 01:03:34,200 - Okay, if I can follow up on that. 1294 01:03:34,200 --> 01:03:38,920 So the composting facility is in place then, 1295 01:03:38,920 --> 01:03:40,120 is that correct? 1296 01:03:40,120 --> 01:03:43,200 - It is the dino-dirt facility that we currently have. 1297 01:03:43,200 --> 01:03:45,360 So it takes the yard waste, takes the biosolids, 1298 01:03:45,360 --> 01:03:48,560 and we do have a couple of commercial customers 1299 01:03:48,560 --> 01:03:51,400 that we do take organic material from. 1300 01:03:51,400 --> 01:03:55,400 So waste fruits and vegetables that have not been sold 1301 01:03:55,400 --> 01:03:58,280 at any post-prepared food waste 1302 01:03:58,280 --> 01:04:00,040 that cannot go into our facility. 1303 01:04:00,040 --> 01:04:02,400 - Okay, good, I'm glad to learn that. 1304 01:04:02,400 --> 01:04:07,400 Now my question is, why isn't an expansion 1305 01:04:07,880 --> 01:04:12,880 of the composting program and an accompanying 1306 01:04:12,880 --> 01:04:16,640 cost examination in comparison 1307 01:04:16,640 --> 01:04:19,600 with this $26 million project, 1308 01:04:19,600 --> 01:04:22,840 why is that option of expanding 1309 01:04:22,840 --> 01:04:28,000 the city's current composting program, 1310 01:04:28,000 --> 01:04:31,960 why is that not also an option in this case 1311 01:04:31,960 --> 01:04:35,840 to help manage the landfill gas production? 1312 01:04:37,040 --> 01:04:38,000 - There are several reasons. 1313 01:04:38,000 --> 01:04:41,680 First of all, 1590B permit allows us the, 1314 01:04:41,680 --> 01:04:44,400 will allow us the opportunity 1315 01:04:44,400 --> 01:04:47,960 to actually create a composting program 1316 01:04:47,960 --> 01:04:49,680 that you're speaking of. 1317 01:04:49,680 --> 01:04:52,560 Secondarily, our comprehensive solid waste management 1318 01:04:52,560 --> 01:04:54,880 strategy will actually look at the cost benefit 1319 01:04:54,880 --> 01:04:57,000 related to that and give us some strategies 1320 01:04:57,000 --> 01:05:01,240 to move forward to make that an effective policy. 1321 01:05:01,240 --> 01:05:04,160 And thirdly, regardless of whether we take, 1322 01:05:04,160 --> 01:05:09,160 have a compost program in place or take material or not, 1323 01:05:09,160 --> 01:05:10,880 the city of Denton's landfill 1324 01:05:10,880 --> 01:05:14,160 will always generate landfill gas. 1325 01:05:14,160 --> 01:05:17,760 And we are looking at the manager of that material forward 1326 01:05:17,760 --> 01:05:21,080 with this specific program. 1327 01:05:21,080 --> 01:05:22,360 - I understand that. 1328 01:05:22,360 --> 01:05:25,560 And, but it just seems to make common sense 1329 01:05:25,560 --> 01:05:30,000 that the easiest and perhaps most successful way 1330 01:05:30,000 --> 01:05:33,720 to reduce the methane would be to reduce 1331 01:05:33,720 --> 01:05:36,840 the amount of methane generating materials. 1332 01:05:36,840 --> 01:05:41,080 And I have a question. 1333 01:05:41,080 --> 01:05:44,720 I mean, I don't understand why this is being presented 1334 01:05:44,720 --> 01:05:49,320 before we've even seen a solid waste strategic plan. 1335 01:05:49,320 --> 01:05:51,400 We won't see that until next month. 1336 01:05:51,400 --> 01:05:53,640 So I think this is sort of jumping the gun. 1337 01:05:53,640 --> 01:05:56,240 I think there's a lot more work needs to be done 1338 01:05:56,240 --> 01:05:59,640 with this $26 million investment. 1339 01:05:59,640 --> 01:06:02,120 And that's a lot of money, needless to say. 1340 01:06:02,120 --> 01:06:04,960 And we need to find out what the options are 1341 01:06:04,960 --> 01:06:09,280 with expanding our composting program. 1342 01:06:09,280 --> 01:06:11,640 And I say this because I've done some research 1343 01:06:11,640 --> 01:06:14,320 and seen what other cities have done 1344 01:06:14,320 --> 01:06:16,600 and the results of it and the financial 1345 01:06:16,600 --> 01:06:18,880 and environmental benefits of it. 1346 01:06:18,880 --> 01:06:22,400 So I would feel very much more comfortable 1347 01:06:22,400 --> 01:06:25,720 with giving direction on this after we know more 1348 01:06:25,720 --> 01:06:29,480 about other options. 1349 01:06:29,480 --> 01:06:34,480 And especially after we've seen this new strategic plan. 1350 01:06:34,480 --> 01:06:39,360 I cannot see giving direction to move ahead with this now 1351 01:06:39,360 --> 01:06:42,240 until we know what the big picture is. 1352 01:06:42,240 --> 01:06:43,640 Thank you. 1353 01:06:43,640 --> 01:06:45,920 - Well, and this is Tony, just to be clear. 1354 01:06:45,920 --> 01:06:48,600 So the proposal from staff today 1355 01:06:48,600 --> 01:06:53,320 is not to do the $26 million option. 1356 01:06:53,320 --> 01:06:54,160 So just to be clear. 1357 01:06:54,160 --> 01:06:55,640 And then the other item that I'll mention 1358 01:06:55,640 --> 01:06:58,520 is we do have an upcoming discussion, 1359 01:06:58,520 --> 01:07:00,360 I think with the PB and the council, 1360 01:07:00,360 --> 01:07:03,560 also to talk about dyno dirt and biosolids 1361 01:07:03,560 --> 01:07:05,640 and some additional requests that they've made 1362 01:07:05,640 --> 01:07:08,560 that may also go to answer some of your questions. 1363 01:07:08,560 --> 01:07:10,120 But again, I just want to be clear that 1364 01:07:10,120 --> 01:07:11,360 the recommendation from staff today 1365 01:07:11,360 --> 01:07:13,520 is not to do the $26 million investment. 1366 01:07:13,520 --> 01:07:17,520 - To work with a third party, correct? 1367 01:07:17,520 --> 01:07:19,080 - That's correct. 1368 01:07:19,080 --> 01:07:22,760 - Which would come back to this board before it's approved. 1369 01:07:22,760 --> 01:07:23,600 - Absolutely. 1370 01:07:23,600 --> 01:07:27,080 - Does that give you more comfort, Ed? 1371 01:07:27,080 --> 01:07:30,560 - I would still like to have the expansion 1372 01:07:30,560 --> 01:07:33,240 of the composting program included as an option. 1373 01:07:33,240 --> 01:07:38,800 - That is going to end up being a separate budgetary program 1374 01:07:38,800 --> 01:07:40,760 that we'll do the research for you, 1375 01:07:40,760 --> 01:07:42,600 try to figure out how we get that off the ground. 1376 01:07:42,600 --> 01:07:46,040 But that is wholly independent of this particular issue 1377 01:07:46,040 --> 01:07:48,560 where in this particular program, 1378 01:07:48,560 --> 01:07:50,360 we can actually end up doing both 1379 01:07:50,360 --> 01:07:53,200 if the PUB and the council want us to add that service. 1380 01:07:53,200 --> 01:07:55,120 But you're talking about a program addition 1381 01:07:55,120 --> 01:07:57,320 that is currently not budgeted 1382 01:07:57,320 --> 01:07:59,760 and that we need to do the proper due diligence on. 1383 01:07:59,760 --> 01:08:02,520 So nothing's going to hold us back from that 1384 01:08:02,520 --> 01:08:04,000 if the council and PUB want to do it, 1385 01:08:04,000 --> 01:08:06,560 but it is completely independent of this project 1386 01:08:06,560 --> 01:08:10,560 where we're asking for that approval. 1387 01:08:10,560 --> 01:08:11,720 - Okay, thank you. 1388 01:08:11,720 --> 01:08:15,400 But the bottom line is, according to the, 1389 01:08:15,400 --> 01:08:17,560 what this permit application says, 1390 01:08:17,560 --> 01:08:21,800 is that the composting facility has been permitted 1391 01:08:21,800 --> 01:08:24,040 and is in place. 1392 01:08:24,040 --> 01:08:26,880 - The yard waste. 1393 01:08:26,880 --> 01:08:30,280 - Yeah, the yard waste permitting, yes. 1394 01:08:30,280 --> 01:08:33,280 And there's absolutely nothing preventing us 1395 01:08:33,280 --> 01:08:36,240 in the upcoming years we're working on the next budget. 1396 01:08:36,240 --> 01:08:38,040 If we want to put a program like that in place, 1397 01:08:38,040 --> 01:08:40,520 there's zero preventing us from doing that. 1398 01:08:40,520 --> 01:08:42,720 It's going to have no material impact at all 1399 01:08:42,720 --> 01:08:44,440 on Brian's recommendation. 1400 01:08:44,440 --> 01:08:45,520 It's just going to be a, 1401 01:08:45,520 --> 01:08:47,320 it would just be a separate program 1402 01:08:47,320 --> 01:08:50,080 that you decide to offer if you choose to do that. 1403 01:08:50,080 --> 01:08:52,120 So we'll do the research for you, 1404 01:08:52,120 --> 01:08:54,360 bring that back to PUB and council, 1405 01:08:54,360 --> 01:08:56,880 let you know what the rate impacts might be of that 1406 01:08:56,880 --> 01:08:59,000 and move forward just like we would any other program. 1407 01:08:59,000 --> 01:09:01,360 But I think staff's already committed to you today 1408 01:09:01,360 --> 01:09:03,440 that they'll get that research done for you. 1409 01:09:03,440 --> 01:09:04,720 - Okay, thank you very much. 1410 01:09:04,720 --> 01:09:05,560 - Yep. 1411 01:09:05,560 --> 01:09:07,400 - Charlie, I think you had a question, Charlie. 1412 01:09:07,400 --> 01:09:08,240 - I did. 1413 01:09:08,240 --> 01:09:11,400 First, a comment on Ed's points. 1414 01:09:11,400 --> 01:09:16,400 I think the idea that if we could cut our food waste input 1415 01:09:16,400 --> 01:09:18,560 into the landfill by half, 1416 01:09:18,560 --> 01:09:20,280 that would have a material effect. 1417 01:09:20,280 --> 01:09:22,480 So I think it's certainly something 1418 01:09:22,480 --> 01:09:24,080 worth looking at and considering. 1419 01:09:24,080 --> 01:09:26,440 So I agree with Ed on the idea 1420 01:09:26,440 --> 01:09:29,360 of checking on that as an option. 1421 01:09:29,360 --> 01:09:33,280 The other question I had related to Karen's question, 1422 01:09:33,280 --> 01:09:38,120 slide seven, the landfill currently generates 1423 01:09:38,120 --> 01:09:42,440 approximately 360,000 MCF. 1424 01:09:42,440 --> 01:09:45,080 And my question was just to qualify, 1425 01:09:45,080 --> 01:09:46,880 I think Karen's assumption was 1426 01:09:46,880 --> 01:09:50,760 that it's either 359,000, 1427 01:09:50,760 --> 01:09:55,760 it's either 359 MCF or it's 359 in MCF. 1428 01:09:55,760 --> 01:09:59,080 Can somebody answer that one way or the other? 1429 01:09:59,080 --> 01:10:00,400 I have the opposite assumption. 1430 01:10:00,400 --> 01:10:02,320 That's why I was curious. 1431 01:10:02,320 --> 01:10:07,320 Is it $600 or is it $600,000 worth of natural gas per year? 1432 01:10:14,040 --> 01:10:19,040 - I believe that it's 360,000 cubic feet of landfill gas. 1433 01:10:19,040 --> 01:10:24,640 - So it's a total of $600 worth of natural gas? 1434 01:10:24,640 --> 01:10:31,440 - The gas is on the MMVTU standpoint. 1435 01:10:31,440 --> 01:10:35,800 So it's a volume to a heat conversion 1436 01:10:35,800 --> 01:10:37,400 that you'd have to go through. 1437 01:10:37,400 --> 01:10:40,800 - So clarify one more time. 1438 01:10:40,800 --> 01:10:45,280 Are we talking about $600 worth of natural gas 1439 01:10:45,280 --> 01:10:49,000 or $600,000 worth of natural gas per year 1440 01:10:49,000 --> 01:10:51,240 from the landfill per page seven? 1441 01:10:51,240 --> 01:10:57,640 - I will have to come back and get that answer to you. 1442 01:10:57,640 --> 01:10:58,480 Go back and look at that. 1443 01:10:58,480 --> 01:11:00,200 - I don't think any information's in there 1444 01:11:00,200 --> 01:11:03,880 if you're talking about mass versus energy. 1445 01:11:03,880 --> 01:11:05,440 - Yeah, there's a converging. 1446 01:11:11,800 --> 01:11:13,200 Russ and then Billy. 1447 01:11:13,200 --> 01:11:17,680 - Hey, quick question, Brian. 1448 01:11:17,680 --> 01:11:21,040 When you solicit requests or proposals 1449 01:11:21,040 --> 01:11:25,160 from various third-party companies to do this, 1450 01:11:25,160 --> 01:11:28,040 I would suggest that, well, first of all, 1451 01:11:28,040 --> 01:11:31,000 I'm not that much aware of the physical equipment 1452 01:11:31,000 --> 01:11:35,360 that's required to be in this enrichment facility, 1453 01:11:35,360 --> 01:11:38,280 but I assume there's some kind of a compressor. 1454 01:11:38,280 --> 01:11:40,280 Do you know, is that right? 1455 01:11:41,440 --> 01:11:42,280 That has to compress this? 1456 01:11:42,280 --> 01:11:44,160 - Yes, there would be some compression required. 1457 01:11:44,160 --> 01:11:47,720 - Okay, just as, and knowing the proximity 1458 01:11:47,720 --> 01:11:50,440 of some homes to the landfill, 1459 01:11:50,440 --> 01:11:54,440 you might want to include in your request for proposal 1460 01:11:54,440 --> 01:11:57,200 some kind of a limit on the noise 1461 01:11:57,200 --> 01:12:00,360 that this thing is going to produce. 1462 01:12:00,360 --> 01:12:03,680 Maybe measure so many decibels 100 feet away 1463 01:12:03,680 --> 01:12:06,680 or 200 feet away or whatever it is because, 1464 01:12:06,680 --> 01:12:11,160 and where it's sited could be important also. 1465 01:12:11,160 --> 01:12:12,000 - Correct. 1466 01:12:12,000 --> 01:12:16,920 - Just to make that suggestion to look at that 1467 01:12:16,920 --> 01:12:19,720 and think about that when you're getting these proposals. 1468 01:12:19,720 --> 01:12:22,160 - Yes. 1469 01:12:22,160 --> 01:12:23,000 Thank you. 1470 01:12:23,000 --> 01:12:24,400 - Billy. 1471 01:12:24,400 --> 01:12:27,840 - Okay, mine was about the third-party agreement, too, 1472 01:12:27,840 --> 01:12:29,800 which I'm a huge fan of. 1473 01:12:29,800 --> 01:12:33,360 And I would assume you guys put this all together, 1474 01:12:33,360 --> 01:12:36,000 but we've had third parties in our landfill 1475 01:12:36,000 --> 01:12:37,360 before it hadn't worked out. 1476 01:12:37,360 --> 01:12:39,320 So just want to make sure we've got some sort of agreements 1477 01:12:39,320 --> 01:12:40,960 to take possession of equipment. 1478 01:12:40,960 --> 01:12:47,840 In the event that they don't fulfill their agreement. 1479 01:12:47,840 --> 01:12:51,500 - Thank you, Billy. 1480 01:12:51,500 --> 01:12:54,520 I had that same concern down this road before. 1481 01:12:54,520 --> 01:12:58,880 I'm assuming we've learned, so. 1482 01:12:58,880 --> 01:12:59,720 - Absolutely. 1483 01:12:59,720 --> 01:13:01,240 - Any other questions, comments? 1484 01:13:01,240 --> 01:13:04,000 Go ahead, Karen. 1485 01:13:04,000 --> 01:13:06,800 - Yeah, sorry, my computer blanked out 1486 01:13:06,800 --> 01:13:08,200 while Charlie was talking. 1487 01:13:08,200 --> 01:13:10,200 I don't think it was personal, Charlie. 1488 01:13:10,200 --> 01:13:18,240 When I pay for my natural gas, I'm paying Atmos. 1489 01:13:18,240 --> 01:13:20,600 I haven't heard their name mentioned. 1490 01:13:20,600 --> 01:13:22,000 Are they involved in this in any way? 1491 01:13:22,000 --> 01:13:24,440 Would these be separate pipes from theirs? 1492 01:13:24,440 --> 01:13:28,840 - No, Atmos would be the transporter of the gas. 1493 01:13:28,840 --> 01:13:33,640 So Atmos would be like the NTTA. 1494 01:13:33,640 --> 01:13:36,200 They own the road, you pay them, 1495 01:13:36,200 --> 01:13:38,560 but you don't buy your car from Atmos, so. 1496 01:13:38,560 --> 01:13:42,720 - Oh, that was a nice way to put it. 1497 01:13:42,720 --> 01:13:45,640 - Yeah, thank you. 1498 01:13:45,640 --> 01:13:46,920 - I just want to clarify, 1499 01:13:46,920 --> 01:13:51,920 even if we did a food composting program, 1500 01:13:51,920 --> 01:13:54,800 which I'm actually in favor of, 1501 01:13:54,800 --> 01:13:58,240 especially with a lot of waste coming out of restaurants, 1502 01:13:58,240 --> 01:14:00,320 it's not going to change the fact 1503 01:14:00,320 --> 01:14:03,920 that we're always going to have landfill gas to manage, 1504 01:14:03,920 --> 01:14:04,760 correct? 1505 01:14:04,760 --> 01:14:06,680 I mean, it might reduce in the future. 1506 01:14:06,680 --> 01:14:07,680 - That is correct. 1507 01:14:07,680 --> 01:14:09,920 - Okay, all right. 1508 01:14:09,920 --> 01:14:11,880 That's the clarification I needed, 1509 01:14:11,880 --> 01:14:14,200 is that this doesn't go away 1510 01:14:14,200 --> 01:14:17,040 even if we add additional programs. 1511 01:14:17,040 --> 01:14:19,480 - And as a point of clarification on slide seven, 1512 01:14:19,480 --> 01:14:24,480 that is $360,000, so the end cost would be $600,000. 1513 01:14:24,480 --> 01:14:29,320 - Thank you. 1514 01:14:29,320 --> 01:14:30,320 - You're welcome. 1515 01:14:30,320 --> 01:14:32,280 - All right. 1516 01:14:32,280 --> 01:14:36,320 Consensus. 1517 01:14:36,320 --> 01:14:38,720 I'm in favor of moving forward with this, 1518 01:14:38,720 --> 01:14:42,600 understanding it will come back before us again. 1519 01:14:42,600 --> 01:14:43,520 Russ? 1520 01:14:43,520 --> 01:14:45,520 - I agree, I agree. 1521 01:14:45,520 --> 01:14:46,360 Yes. 1522 01:14:46,360 --> 01:14:47,180 - Barbara? 1523 01:14:47,180 --> 01:14:48,020 - Yes. 1524 01:14:48,020 --> 01:14:48,860 - Okay, okay. 1525 01:14:48,860 --> 01:14:49,700 - And Susan, this is Tony. 1526 01:14:49,700 --> 01:14:50,540 I just want to make sure, too, 1527 01:14:50,540 --> 01:14:53,080 that the PV understands that part of the recommendation 1528 01:14:53,080 --> 01:14:56,640 is that we would shut down the current generating facility 1529 01:14:56,640 --> 01:14:59,040 and flare the gas in the interim. 1530 01:14:59,040 --> 01:15:01,160 - And how long, what's the time period? 1531 01:15:01,160 --> 01:15:03,720 That would be 18 months to three? 1532 01:15:03,720 --> 01:15:05,920 - One and a half to three years, 1533 01:15:05,920 --> 01:15:08,760 we would have that other facility in place. 1534 01:15:08,760 --> 01:15:12,040 - And that puts how much into the air? 1535 01:15:12,040 --> 01:15:14,560 It's the least. 1536 01:15:14,560 --> 01:15:16,880 - Brian has that information. 1537 01:15:16,880 --> 01:15:20,680 - Pull this back up. 1538 01:15:20,680 --> 01:15:27,760 So if we go back into this slide here, 1539 01:15:27,760 --> 01:15:31,920 again, it is better than running the engine 1540 01:15:31,920 --> 01:15:33,080 during that time. 1541 01:15:33,080 --> 01:15:39,120 So we would look at 45 tons of carbon monoxide, 1542 01:15:39,120 --> 01:15:41,560 approximately eight tons of nitrogen dioxide 1543 01:15:41,560 --> 01:15:44,920 and a 10th of a ton of the non-methane 1544 01:15:44,920 --> 01:15:46,440 volatile organic chemicals. 1545 01:15:46,440 --> 01:15:51,400 So again, it would be less impactful 1546 01:15:51,400 --> 01:15:53,080 than running the engine during that time. 1547 01:15:53,080 --> 01:15:54,400 - Okay, all right. 1548 01:15:58,080 --> 01:16:01,000 (clears throat) 1549 01:16:01,000 --> 01:16:02,960 I'll wait for you to take it back down. 1550 01:16:02,960 --> 01:16:08,080 All right, that doesn't change for me at all. 1551 01:16:08,080 --> 01:16:11,480 It's better than running the engine and losing money, too. 1552 01:16:11,480 --> 01:16:13,600 Ed? 1553 01:16:13,600 --> 01:16:18,760 - Yeah, I don't feel comfortable with being, 1554 01:16:18,760 --> 01:16:21,040 saying, moving ahead. 1555 01:16:21,040 --> 01:16:23,560 I think that I would want to see 1556 01:16:23,560 --> 01:16:28,560 what the impact would be of a more robust composting program. 1557 01:16:28,560 --> 01:16:32,200 - Okay. 1558 01:16:32,200 --> 01:16:34,320 Charlie? 1559 01:16:34,320 --> 01:16:37,800 - Well, I just want to say-- - I like the idea. 1560 01:16:37,800 --> 01:16:39,240 - I thought you said Charlie, I'm sorry. 1561 01:16:39,240 --> 01:16:40,760 - That's okay. (laughs) 1562 01:16:40,760 --> 01:16:41,600 Go ahead, Charlie. 1563 01:16:41,600 --> 01:16:45,400 - I like the idea and I'm in favor of moving ahead 1564 01:16:45,400 --> 01:16:47,720 with staff's recommendations. 1565 01:16:47,720 --> 01:16:50,200 I do think Ed has a good point, though, 1566 01:16:50,200 --> 01:16:55,200 that if we were to convert half of that food waste 1567 01:16:55,200 --> 01:17:00,600 into compost, we would not have to deal with that 1568 01:17:00,600 --> 01:17:01,720 at the landfill. 1569 01:17:01,720 --> 01:17:03,680 Now, I assume it would still happen 1570 01:17:03,680 --> 01:17:05,680 during the composting process, 1571 01:17:05,680 --> 01:17:08,560 but we would be generating something worthwhile. 1572 01:17:08,560 --> 01:17:12,520 So I think we should look at the economics of that as well. 1573 01:17:12,520 --> 01:17:14,880 - May I add something to what Charlie said? 1574 01:17:14,880 --> 01:17:15,800 - Sure. - Composting, 1575 01:17:15,800 --> 01:17:20,800 composting does not, just as a matter of clarification, 1576 01:17:20,800 --> 01:17:23,360 composting does not create methane. 1577 01:17:23,360 --> 01:17:25,800 - Okay, thank you. - Yeah. 1578 01:17:25,800 --> 01:17:30,800 It's an anaerobic, absence of oxygen is what causes, 1579 01:17:30,800 --> 01:17:32,920 from what I learned the other day. 1580 01:17:32,920 --> 01:17:37,920 So methane is not produced by composting, thank you. 1581 01:17:37,920 --> 01:17:43,680 - It can be odiferous around there, 1582 01:17:43,680 --> 01:17:46,360 but yeah, it does not. 1583 01:17:46,360 --> 01:17:48,320 Charlie, I mean, Billy. 1584 01:17:48,320 --> 01:17:52,040 - Oh, I was gonna ask, as we can take five after this. 1585 01:17:52,040 --> 01:17:52,880 - Oh, sure. 1586 01:17:52,880 --> 01:17:56,640 And Karen, but are you in agreement, Billy? 1587 01:17:56,640 --> 01:17:57,600 What's your opinion? 1588 01:17:57,600 --> 01:18:01,720 - Yeah, five minutes is good. 1589 01:18:01,720 --> 01:18:04,920 I just wanted to say I support the proposal. 1590 01:18:04,920 --> 01:18:07,480 We're gonna have to do something with that gas 1591 01:18:07,480 --> 01:18:09,280 and there will be gas no matter what. 1592 01:18:09,280 --> 01:18:11,360 I'm very curious about Austin's program. 1593 01:18:11,360 --> 01:18:14,120 My daughter was not impressed with it, 1594 01:18:14,120 --> 01:18:17,320 but maybe that's just youthful idealism. 1595 01:18:17,320 --> 01:18:21,280 She's, it was a sustainability major, UT, 1596 01:18:21,280 --> 01:18:23,480 varying all that kind of stuff. 1597 01:18:23,480 --> 01:18:25,760 Much smarter about it than I am. 1598 01:18:25,760 --> 01:18:30,760 So I would be very interested in getting some comparisons 1599 01:18:30,760 --> 01:18:34,360 with how Austin's established program 1600 01:18:34,360 --> 01:18:37,480 for food-based composting has been working, 1601 01:18:37,480 --> 01:18:40,720 especially in regards to their landfill, 1602 01:18:40,720 --> 01:18:45,720 which is bigger than ours, I believe. 1603 01:18:45,720 --> 01:18:49,760 But otherwise I support the program. 1604 01:18:49,760 --> 01:18:55,160 - Well, Brian, I guess you've got your direction. 1605 01:18:55,160 --> 01:18:57,840 - I do, and I appreciate the discussion this morning 1606 01:18:57,840 --> 01:19:01,480 and the commitment to move forward. 1607 01:19:01,480 --> 01:19:03,920 - All right. 1608 01:19:03,920 --> 01:19:05,280 - Thank you. 1609 01:19:05,280 --> 01:19:07,360 - So I guess we'll take a five minute break. 1610 01:19:07,360 --> 01:19:10,800 It is now according to my clock 10.21, 1611 01:19:10,800 --> 01:19:13,800 so we'll be back 10.25-ish. 1612 01:19:13,800 --> 01:19:20,400 - All right, you're on. 1613 01:19:20,400 --> 01:19:22,000 - All right, we are back on. 1614 01:19:22,000 --> 01:19:23,280 We're still in work session. 1615 01:19:23,280 --> 01:19:24,360 And after this item, 1616 01:19:24,360 --> 01:19:27,560 I am going to be calling us back into open session 1617 01:19:27,560 --> 01:19:30,800 and then asking for a adjournment into closed session. 1618 01:19:30,800 --> 01:19:33,760 But right now we're on, receive a report, 1619 01:19:33,760 --> 01:19:36,000 hold a discussion and give staff direction 1620 01:19:36,000 --> 01:19:38,320 regarding water, wastewater, drainage, 1621 01:19:38,320 --> 01:19:41,040 and electric capital improvement program. 1622 01:19:41,040 --> 01:19:42,640 - Good morning, PUB members, Chair, 1623 01:19:42,640 --> 01:19:44,760 and Nick Vinson, Assistant Director of Finance. 1624 01:19:44,760 --> 01:19:46,760 I'm happy to be in front of you today. 1625 01:19:46,760 --> 01:19:49,000 We have three presentations to review 1626 01:19:49,000 --> 01:19:51,080 the detailed utility projects with you. 1627 01:19:51,080 --> 01:19:51,920 I know this is something 1628 01:19:51,920 --> 01:19:53,200 the Public Utility Board requested 1629 01:19:53,200 --> 01:19:55,120 during the budgeting process. 1630 01:19:55,120 --> 01:19:56,200 So we felt like it was appropriate 1631 01:19:56,200 --> 01:19:58,920 to bring back that discussion with you. 1632 01:19:58,920 --> 01:20:00,200 Really quick, before we get started, 1633 01:20:00,200 --> 01:20:01,240 I want to start the framework 1634 01:20:01,240 --> 01:20:03,360 or what the presentations will talk about. 1635 01:20:03,360 --> 01:20:04,400 And each of the presentations 1636 01:20:04,400 --> 01:20:05,960 will have a detailed discussion. 1637 01:20:05,960 --> 01:20:08,120 regarding the utility projects. 1638 01:20:08,120 --> 01:20:10,000 And the presentations actually do not get 1639 01:20:10,000 --> 01:20:12,400 into a great level of detail regarding those projects 1640 01:20:12,400 --> 01:20:15,160 that are city-wide, those larger projects. 1641 01:20:15,160 --> 01:20:17,120 So as one's a multiple department 1642 01:20:17,120 --> 01:20:19,440 is being involved in those projects. 1643 01:20:19,440 --> 01:20:21,160 We do have Becky Devaney on the phone today. 1644 01:20:21,160 --> 01:20:22,040 If there's any questions, 1645 01:20:22,040 --> 01:20:23,080 she'll be happy to address them. 1646 01:20:23,080 --> 01:20:25,400 If you have questions regarding those city-wide projects 1647 01:20:25,400 --> 01:20:26,600 that she can address, 1648 01:20:26,600 --> 01:20:29,280 otherwise we'll walk through the utility projects. 1649 01:20:29,280 --> 01:20:30,560 And then Susan, if it's okay, 1650 01:20:30,560 --> 01:20:31,880 I'll go through the presentations. 1651 01:20:31,880 --> 01:20:33,480 If there's any operational questions, 1652 01:20:33,480 --> 01:20:35,160 if we can wait until the end, 1653 01:20:35,160 --> 01:20:36,320 I can turn it over to the directors 1654 01:20:36,320 --> 01:20:38,120 and they can address those questions. 1655 01:20:38,120 --> 01:20:44,400 All right. 1656 01:20:44,400 --> 01:20:50,480 So we'll start with water. 1657 01:20:50,480 --> 01:20:51,480 Really quick, what I'll do 1658 01:20:51,480 --> 01:20:53,320 is walk you through an overview of the presentation. 1659 01:20:53,320 --> 01:20:55,800 This is consistent for each of the utilities, 1660 01:20:55,800 --> 01:20:58,560 but really we'll look at the project execution 1661 01:20:58,560 --> 01:21:01,400 and management, how the process previously was, 1662 01:21:01,400 --> 01:21:03,600 how it is now, and then what improvements 1663 01:21:03,600 --> 01:21:05,640 have been put in place by staff. 1664 01:21:05,640 --> 01:21:08,200 After that, we will look at 31 of 56 projects. 1665 01:21:08,200 --> 01:21:09,240 So in your backup material, 1666 01:21:09,240 --> 01:21:10,920 you should have got a detailed project list 1667 01:21:10,920 --> 01:21:13,040 of all the active projects in water. 1668 01:21:13,040 --> 01:21:14,160 The presentation in front of you 1669 01:21:14,160 --> 01:21:16,280 will cover 31 of those projects. 1670 01:21:16,280 --> 01:21:18,120 We'll not discuss every one of those 31s. 1671 01:21:18,120 --> 01:21:19,200 They are listed on the slide, 1672 01:21:19,200 --> 01:21:21,320 but we'll discuss a portion of them. 1673 01:21:21,320 --> 01:21:22,920 So I'll go through those with you. 1674 01:21:22,920 --> 01:21:26,240 For presentation purposes 1675 01:21:26,240 --> 01:21:27,560 and be consistent with the budget, 1676 01:21:27,560 --> 01:21:28,680 we have grouped these projects 1677 01:21:28,680 --> 01:21:30,800 into five different categories. 1678 01:21:30,800 --> 01:21:33,040 The first one being plant CIP improvements, 1679 01:21:33,040 --> 01:21:35,360 the second one being field service replacements. 1680 01:21:35,360 --> 01:21:37,040 The next one being your service projects, 1681 01:21:37,040 --> 01:21:39,280 for example, which is professional services. 1682 01:21:39,280 --> 01:21:41,360 And then we have some state highway relocations. 1683 01:21:41,360 --> 01:21:43,560 And then we'll talk about those future projects 1684 01:21:43,560 --> 01:21:44,800 that were included in the budget. 1685 01:21:44,800 --> 01:21:46,960 And we will be bringing those discussions back to you 1686 01:21:46,960 --> 01:21:47,800 in the near future. 1687 01:21:47,800 --> 01:21:50,480 So we'll get into that discussion also. 1688 01:21:50,480 --> 01:21:52,800 So really quick, we wanna review the previous process 1689 01:21:52,800 --> 01:21:55,320 that was in place from 2015 to 2017, 1690 01:21:55,320 --> 01:21:57,960 basically prior to 2017. 1691 01:21:57,960 --> 01:21:59,760 Project planning and delivery. 1692 01:21:59,760 --> 01:22:02,760 There was a lack of project prioritization. 1693 01:22:02,760 --> 01:22:05,240 There was a focus on short-term cost savings. 1694 01:22:05,240 --> 01:22:07,320 And then there was poor project execution. 1695 01:22:07,320 --> 01:22:09,520 So really none of those major projects getting completed. 1696 01:22:09,520 --> 01:22:11,680 And I'll show that to you on the next slide. 1697 01:22:11,680 --> 01:22:13,920 There were silos that existed within the organization, 1698 01:22:13,920 --> 01:22:16,040 which minimal coordination between departments. 1699 01:22:16,040 --> 01:22:17,920 And that has since been, 1700 01:22:17,920 --> 01:22:19,480 those silos have been broken down. 1701 01:22:19,480 --> 01:22:22,600 Departments are talking to each other now, which is great. 1702 01:22:22,600 --> 01:22:23,920 And then for the water utility, 1703 01:22:23,920 --> 01:22:25,480 there are three main projects 1704 01:22:25,480 --> 01:22:27,360 that we wanted to communicate 1705 01:22:27,360 --> 01:22:30,920 that have been moved along here recently 1706 01:22:30,920 --> 01:22:33,280 that were previously on hold was the North-South 1707 01:22:33,280 --> 01:22:34,880 water transmission line, 1708 01:22:34,880 --> 01:22:36,920 the Aldridge-John Payne transmission line, 1709 01:22:36,920 --> 01:22:38,640 and then Elm and Locust phase two. 1710 01:22:38,640 --> 01:22:42,840 And then post 2017, we have had decreased design 1711 01:22:42,840 --> 01:22:44,400 and construction delays, 1712 01:22:44,400 --> 01:22:47,160 and our continuous focus on cost containment transparency 1713 01:22:47,160 --> 01:22:48,880 and emphasis on the city's core values. 1714 01:22:48,880 --> 01:22:50,600 And that was something discussed with the public utility 1715 01:22:50,600 --> 01:22:53,880 board and city council during the budgeting process. 1716 01:22:53,880 --> 01:22:55,400 So really when we're looking at a project 1717 01:22:55,400 --> 01:22:57,200 and looking at how we wanted to communicate this 1718 01:22:57,200 --> 01:22:58,320 to the public utility board, 1719 01:22:58,320 --> 01:23:00,640 we started looking at project activity. 1720 01:23:00,640 --> 01:23:02,280 How much money has been spent 1721 01:23:02,280 --> 01:23:03,600 or encumbered on these projects? 1722 01:23:03,600 --> 01:23:06,640 And really, project movement is one thing 1723 01:23:06,640 --> 01:23:08,800 we've been looking at in the finance department. 1724 01:23:08,800 --> 01:23:11,360 So we put this table together for you. 1725 01:23:11,360 --> 01:23:13,080 There were a couple of major projects 1726 01:23:13,080 --> 01:23:16,920 that make up a big large portion of this increase 1727 01:23:16,920 --> 01:23:17,760 that I'll review with you. 1728 01:23:17,760 --> 01:23:19,040 The first one being the Lake Louisville 1729 01:23:19,040 --> 01:23:21,720 water treatment plan upgrade and solids handling. 1730 01:23:21,720 --> 01:23:23,560 The next one being the North-South water main. 1731 01:23:23,560 --> 01:23:26,440 And the third one being that Aldridge-John Payne 1732 01:23:26,440 --> 01:23:27,720 that I mentioned to you. 1733 01:23:27,720 --> 01:23:30,000 So in 2017, you can see the year to date activity 1734 01:23:30,000 --> 01:23:32,120 of $186 million. 1735 01:23:32,120 --> 01:23:35,480 In 1920, this actually increased to 258 million. 1736 01:23:35,480 --> 01:23:38,440 So you can see that increase about 72 million. 1737 01:23:38,440 --> 01:23:42,000 So really showing, since 2017, post that time period, 1738 01:23:42,000 --> 01:23:43,680 when we broke those silos down, 1739 01:23:43,680 --> 01:23:46,640 we really started communicating between departments, 1740 01:23:46,640 --> 01:23:50,080 really started to focus on project execution 1741 01:23:50,080 --> 01:23:51,400 and getting those projects completed, 1742 01:23:51,400 --> 01:23:54,080 really increased that project activity. 1743 01:23:54,080 --> 01:23:56,360 So I wanted to point this out to the public utility board, 1744 01:23:56,360 --> 01:23:58,760 setting the stage for the discussion today, 1745 01:23:58,760 --> 01:24:01,960 and then what's to come for the other utilities. 1746 01:24:01,960 --> 01:24:05,400 And as I'd mentioned on the previous slide, 1747 01:24:05,400 --> 01:24:06,800 minimize this up here, 1748 01:24:06,800 --> 01:24:08,200 we have five main categories 1749 01:24:08,200 --> 01:24:09,920 that the water utility projects are grouped in. 1750 01:24:09,920 --> 01:24:12,720 The first one being your plant CIMB improvements. 1751 01:24:12,720 --> 01:24:15,200 The next one being field service replacements, 1752 01:24:15,200 --> 01:24:17,800 service projects, special professional services, 1753 01:24:17,800 --> 01:24:21,440 state highway relocations, and your future projects. 1754 01:24:21,440 --> 01:24:24,040 So those ones included in the budget 1755 01:24:24,040 --> 01:24:25,720 and then those discussions I'll be coming back to 1756 01:24:25,720 --> 01:24:26,800 in the near future. 1757 01:24:28,320 --> 01:24:29,600 So this is the template we've came up 1758 01:24:29,600 --> 01:24:30,640 with the public utility board. 1759 01:24:30,640 --> 01:24:33,280 This template has been shown to city council in the past. 1760 01:24:33,280 --> 01:24:34,240 We've changed a little bit. 1761 01:24:34,240 --> 01:24:35,520 So I'm gonna walk you through the table 1762 01:24:35,520 --> 01:24:36,960 just to make sure we have the basis 1763 01:24:36,960 --> 01:24:38,920 of what the discussion will be based on. 1764 01:24:38,920 --> 01:24:41,360 And then we'll proceed to the project descriptions. 1765 01:24:41,360 --> 01:24:43,480 So the left-hand side, you can see the project name 1766 01:24:43,480 --> 01:24:45,560 of each of the projects that'll be discussed. 1767 01:24:45,560 --> 01:24:48,040 And these are plant and CIP improvement projects 1768 01:24:48,040 --> 01:24:49,760 in the water utility. 1769 01:24:49,760 --> 01:24:52,680 We do have this indicator dot, it's currently green. 1770 01:24:52,680 --> 01:24:55,000 We do use this to look at the schedule of projects. 1771 01:24:55,000 --> 01:24:56,720 You can see down here at the bottom, 1772 01:24:56,720 --> 01:24:59,840 green meaning on target, yellow meaning risk and opportunity, 1773 01:24:59,840 --> 01:25:04,400 red mean off target, and then a gray color just meaning NA. 1774 01:25:04,400 --> 01:25:06,480 And then we have our estimated completion date. 1775 01:25:06,480 --> 01:25:08,320 We do currently show this as a month and a year. 1776 01:25:08,320 --> 01:25:10,840 Moving forward, this may change to a quarterly number, 1777 01:25:10,840 --> 01:25:12,280 but currently we have it on monthly. 1778 01:25:12,280 --> 01:25:13,920 So September, 2020, for example, 1779 01:25:13,920 --> 01:25:15,800 this project is scheduled to be completed. 1780 01:25:15,800 --> 01:25:18,320 So at the end of this month, it is coming up. 1781 01:25:18,320 --> 01:25:20,360 EAC, which is the estimated at completion. 1782 01:25:20,360 --> 01:25:21,400 You can see that amount here. 1783 01:25:21,400 --> 01:25:24,240 So what is that project gonna cost when it's constructed? 1784 01:25:24,240 --> 01:25:25,400 What the current budget is, 1785 01:25:25,400 --> 01:25:29,160 what's currently allocated to this project, the $440,000. 1786 01:25:29,160 --> 01:25:30,520 And then if there's any future funding, 1787 01:25:30,520 --> 01:25:33,000 we've shown you your '21 and '22 on this slide 1788 01:25:33,000 --> 01:25:34,960 to identify some future funding on some projects 1789 01:25:34,960 --> 01:25:36,320 that are listed here below. 1790 01:25:36,320 --> 01:25:37,280 And then the revised total, 1791 01:25:37,280 --> 01:25:40,240 you can see right here to the far right-hand side. 1792 01:25:40,240 --> 01:25:44,120 So really quick, for plant improvements and CIP improvements, 1793 01:25:44,120 --> 01:25:44,960 I wanted to walk you through 1794 01:25:44,960 --> 01:25:47,280 the Lake Louisville Water Treatment Plant, 1795 01:25:47,280 --> 01:25:51,040 also abbreviated as LLWTP upgrades. 1796 01:25:51,040 --> 01:25:53,360 This is upgrades to the Lake Ray Roberts facility, 1797 01:25:53,360 --> 01:25:55,840 including zebra mussel control. 1798 01:25:55,840 --> 01:25:59,080 And this project is scheduled for completion in 2021. 1799 01:25:59,080 --> 01:26:00,000 And then the second project 1800 01:26:00,000 --> 01:26:01,080 really wanna bring to your attention 1801 01:26:01,080 --> 01:26:03,000 is the Lake Louisville solids handling. 1802 01:26:03,000 --> 01:26:05,120 So something we've talked about in the budgeting process 1803 01:26:05,120 --> 01:26:07,240 before that you can see the construction 1804 01:26:07,240 --> 01:26:10,760 of new residual sludge dewatering facility. 1805 01:26:10,760 --> 01:26:11,800 And this project is scheduled 1806 01:26:11,800 --> 01:26:13,920 for completion to April, 2021. 1807 01:26:13,920 --> 01:26:16,200 Couple of things on the side. 1808 01:26:16,200 --> 01:26:17,040 So you can see up here, 1809 01:26:17,040 --> 01:26:18,880 the regulatory performance upgrades. 1810 01:26:18,880 --> 01:26:20,920 It does have an asterisk next to it. 1811 01:26:20,920 --> 01:26:24,200 This does indicate this project is impact fee eligible. 1812 01:26:24,200 --> 01:26:26,280 So this is a growth capacity project. 1813 01:26:26,280 --> 01:26:28,520 So we can use those impact fee revenue dollars 1814 01:26:28,520 --> 01:26:31,040 that are coming in to fund this project. 1815 01:26:31,040 --> 01:26:33,080 This is one we discussed with the Public Utility Board 1816 01:26:33,080 --> 01:26:36,320 of having $18 million in funding in 2021. 1817 01:26:36,320 --> 01:26:37,800 And this was the project that enabled us 1818 01:26:37,800 --> 01:26:40,560 to push that Lake Ray Roberts expansion out, 1819 01:26:40,560 --> 01:26:43,080 the upgrades to that facility design in '24 1820 01:26:43,080 --> 01:26:45,440 and the construction in '25. 1821 01:26:45,440 --> 01:26:47,000 So that is a great project. 1822 01:26:47,000 --> 01:26:49,560 Field service replacements. 1823 01:26:49,560 --> 01:26:51,080 There are several of these projects. 1824 01:26:51,080 --> 01:26:53,280 I think there's roughly 10 on this slide. 1825 01:26:53,280 --> 01:26:55,560 There is another slide that will address these also. 1826 01:26:55,560 --> 01:26:57,640 And what this is, this is simply replacement 1827 01:26:57,640 --> 01:26:59,600 of existing infrastructure in the city. 1828 01:26:59,600 --> 01:27:01,240 So infrastructure that's been put in place 1829 01:27:01,240 --> 01:27:03,040 several years ago that the department 1830 01:27:03,040 --> 01:27:05,760 is deemed to be needing to be replaced, 1831 01:27:05,760 --> 01:27:08,720 maybe because of breaks or just aging infrastructure. 1832 01:27:08,720 --> 01:27:11,640 So you can see same table format 1833 01:27:11,640 --> 01:27:13,560 as we had on the previous slide. 1834 01:27:13,560 --> 01:27:14,960 We do have a couple of these. 1835 01:27:14,960 --> 01:27:17,640 You can see field service replacement for the ore water. 1836 01:27:17,640 --> 01:27:19,840 This is water main replacement project is approximately 1837 01:27:19,840 --> 01:27:22,600 800 feet from Bolivar Street to Locust. 1838 01:27:22,600 --> 01:27:24,600 This project construction has been completed 1839 01:27:24,600 --> 01:27:27,680 and we're currently going through the closeout phase, 1840 01:27:27,680 --> 01:27:30,040 which is scheduled to wrap up at the end of this month. 1841 01:27:30,040 --> 01:27:33,160 Avenue B water, which is water main replacement project, 1842 01:27:33,160 --> 01:27:35,800 approximately 1200 feet from Eagle to Underwood. 1843 01:27:35,800 --> 01:27:39,280 This project is scheduled for completion in September, 2020. 1844 01:27:39,280 --> 01:27:41,120 And then when I get to the future project slide 1845 01:27:41,120 --> 01:27:43,440 and it was talked, we actually talked to you about it 1846 01:27:43,440 --> 01:27:45,080 during the budgeting process. 1847 01:27:45,080 --> 01:27:47,720 And I may mention this before all field service replacements 1848 01:27:47,720 --> 01:27:50,360 in the water utility or revenue funded. 1849 01:27:50,360 --> 01:27:51,520 So we're actually not debt funding 1850 01:27:51,520 --> 01:27:52,680 that replacement infrastructure, 1851 01:27:52,680 --> 01:27:55,400 we're actually revenue funding that replacement. 1852 01:27:55,400 --> 01:27:58,880 So there's a positive thing for this utility. 1853 01:27:58,880 --> 01:28:01,720 This is the field service replacement projects continued. 1854 01:28:01,720 --> 01:28:03,800 About 10 projects in this slide also. 1855 01:28:03,800 --> 01:28:06,320 A couple of the ones we're gonna talk to you about 1856 01:28:06,320 --> 01:28:09,680 is Foxcroft and this is the water main replacement project 1857 01:28:09,680 --> 01:28:12,840 approximately 3000 feet from Emerson to Old North. 1858 01:28:12,840 --> 01:28:14,400 And this project is scheduled for completion 1859 01:28:14,400 --> 01:28:16,760 in January of 2021. 1860 01:28:16,760 --> 01:28:19,120 But then the next one is precision water line project. 1861 01:28:19,120 --> 01:28:20,560 This is the water main replacement project 1862 01:28:20,560 --> 01:28:24,600 of approximately 1500 feet from Airport to Die Street. 1863 01:28:24,600 --> 01:28:27,960 So we can give additional detail on these projects. 1864 01:28:27,960 --> 01:28:30,240 Definitely if it's something you'd like to hear, 1865 01:28:30,240 --> 01:28:32,640 Preetem is present, the assistant director 1866 01:28:32,640 --> 01:28:34,960 for water and wastewater that can address these 1867 01:28:34,960 --> 01:28:36,080 at the end of their presentation 1868 01:28:36,080 --> 01:28:39,560 if you have any specific questions regarding those. 1869 01:28:39,560 --> 01:28:41,240 And the next ones are the service projects. 1870 01:28:41,240 --> 01:28:43,600 So those consultants or those professional services 1871 01:28:43,600 --> 01:28:45,120 that we have open that we're currently working 1872 01:28:45,120 --> 01:28:46,560 on the water utility. 1873 01:28:46,560 --> 01:28:47,880 The first one being the Lake Louisville 1874 01:28:47,880 --> 01:28:49,840 transmission pipeline assessment. 1875 01:28:49,840 --> 01:28:52,200 And this is an important project for the water utility. 1876 01:28:52,200 --> 01:28:55,880 So it's a condition assessment of a 20 inch water line. 1877 01:28:55,880 --> 01:28:59,080 This project is scheduled completion is September 2021. 1878 01:28:59,080 --> 01:29:00,880 So basically a year from today. 1879 01:29:00,880 --> 01:29:03,480 On the next one being the risk assessment 1880 01:29:03,480 --> 01:29:05,080 energy response plan. 1881 01:29:05,080 --> 01:29:08,400 And this is preparation of a risk and resiliency study 1882 01:29:08,400 --> 01:29:11,240 and emergency response plan for the water utility. 1883 01:29:11,240 --> 01:29:12,640 We did wanna bring this to your attention. 1884 01:29:12,640 --> 01:29:14,240 I think this is something the public utility board 1885 01:29:14,240 --> 01:29:16,720 brought up in the budgeting process of being a priority. 1886 01:29:16,720 --> 01:29:20,840 So we do have a project open for that as recently completed. 1887 01:29:20,840 --> 01:29:23,720 Text on I-35 relocation. 1888 01:29:23,720 --> 01:29:25,120 We did wanna show this project to you. 1889 01:29:25,120 --> 01:29:29,040 This exists in the water and wastewater utility both. 1890 01:29:29,040 --> 01:29:31,200 So you can see this is relocation of utilities 1891 01:29:31,200 --> 01:29:33,800 that run next to I-35. 1892 01:29:33,800 --> 01:29:38,720 It is part of the expansion project of that construction. 1893 01:29:38,720 --> 01:29:41,120 EAC is currently 12.7 million. 1894 01:29:41,120 --> 01:29:43,520 We do currently have a budget of 2.7 1895 01:29:43,520 --> 01:29:46,320 a planned additional funding of 8.2. 1896 01:29:46,320 --> 01:29:48,600 And a little bit coming from other sources 1897 01:29:48,600 --> 01:29:49,960 to make that project whole. 1898 01:29:49,960 --> 01:29:53,440 So future project summary. 1899 01:29:53,440 --> 01:29:55,840 This is something we showed to you in the budgeting process 1900 01:29:55,840 --> 01:29:57,680 but I wanted to bring it back forward to you. 1901 01:29:57,680 --> 01:29:59,880 We did add an additional column out here. 1902 01:29:59,880 --> 01:30:02,400 So the entire CIP that you approved 1903 01:30:02,400 --> 01:30:04,960 and the city council adopted on September 22nd 1904 01:30:04,960 --> 01:30:08,640 included $51.8 million in water projects. 1905 01:30:08,640 --> 01:30:12,200 And this table below summarizes 46.2. 1906 01:30:12,200 --> 01:30:14,200 It really gave you the status of how those projects 1907 01:30:14,200 --> 01:30:16,440 fit into this plan that I've been presenting to you 1908 01:30:16,440 --> 01:30:18,200 on the previous couple of slides. 1909 01:30:18,200 --> 01:30:19,480 So the first one being the regulatory 1910 01:30:19,480 --> 01:30:21,280 and performance upgrades of 18 million. 1911 01:30:21,280 --> 01:30:23,360 That's that project I talked about with you. 1912 01:30:23,360 --> 01:30:24,760 And this was an existing project. 1913 01:30:24,760 --> 01:30:27,240 So this is in funding enhancement to that project. 1914 01:30:27,240 --> 01:30:28,440 We won't have to set up a new one. 1915 01:30:28,440 --> 01:30:30,160 This one is already open. 1916 01:30:30,160 --> 01:30:32,160 The next one being the Northwest transmission lines 1917 01:30:32,160 --> 01:30:34,800 and booster pump station, 3.35 million. 1918 01:30:34,800 --> 01:30:37,120 This is an existing project also. 1919 01:30:37,120 --> 01:30:39,360 I mean, you can see that text.R35 relocations 1920 01:30:39,360 --> 01:30:41,840 we just reviewed at 10.9. 1921 01:30:41,840 --> 01:30:43,800 Elmond Locust, which is an existing project 1922 01:30:43,800 --> 01:30:45,400 of 4 million funding. 1923 01:30:45,400 --> 01:30:47,040 And then lastly, I wanted to point these out to you. 1924 01:30:47,040 --> 01:30:50,560 This is that annual field service replacement number of 2.7. 1925 01:30:50,560 --> 01:30:53,800 So when you see those field service replacement projects, 1926 01:30:53,800 --> 01:30:56,040 this is where that funding comes from. 1927 01:30:56,040 --> 01:30:58,800 We do plan to bring back a detailed discussion to you 1928 01:30:58,800 --> 01:31:02,240 in January of 2021 to go over a detailed list 1929 01:31:02,240 --> 01:31:05,800 once we have it finalized and what individual streets 1930 01:31:05,800 --> 01:31:08,400 is made up of the 2.7 million. 1931 01:31:08,400 --> 01:31:09,800 And then finally, we have some contracted 1932 01:31:09,800 --> 01:31:12,720 field service replacements for the 2020 bundle. 1933 01:31:12,720 --> 01:31:15,240 And then we had that bond election of 2019, 1934 01:31:15,240 --> 01:31:18,280 which those discussions will come back to you 1935 01:31:18,280 --> 01:31:20,160 in the spring of 2021. 1936 01:31:20,160 --> 01:31:23,880 And then those next discussions, 1937 01:31:23,880 --> 01:31:25,320 as we said during the budgeting process, 1938 01:31:25,320 --> 01:31:27,480 we do plan to circle back with you in December. 1939 01:31:27,480 --> 01:31:30,240 We are somewhat limited on budget or meetings 1940 01:31:30,240 --> 01:31:32,680 in November and December with the holidays coming up, 1941 01:31:32,680 --> 01:31:34,320 but we do plan to bring that back to you, 1942 01:31:34,320 --> 01:31:37,000 the budget discussion and the rate discussion as promised 1943 01:31:37,000 --> 01:31:39,400 in December during that one meeting that you have. 1944 01:31:39,400 --> 01:31:41,520 And then coming back to you in January 2021 1945 01:31:41,520 --> 01:31:43,640 with a quarterly financial project update. 1946 01:31:43,640 --> 01:31:45,440 This is something that staff plans to come back 1947 01:31:45,440 --> 01:31:47,280 to the public utility board on quarterly basis 1948 01:31:47,280 --> 01:31:49,920 to keep you updated about these projects. 1949 01:31:49,920 --> 01:31:51,800 So we're happy to have this format together 1950 01:31:51,800 --> 01:31:53,120 and happy to get your feedback today. 1951 01:31:53,120 --> 01:31:55,520 So we wanted to get it in front of you. 1952 01:31:55,520 --> 01:31:57,680 With that, that concludes the presentation, Susan. 1953 01:31:57,680 --> 01:31:59,360 I'll pull it down for questions. 1954 01:32:00,760 --> 01:32:04,680 - All right, Barbara has her hand up. 1955 01:32:04,680 --> 01:32:05,880 Go ahead. 1956 01:32:05,880 --> 01:32:08,800 - I just wanted to ask you about on slide eight, 1957 01:32:08,800 --> 01:32:12,880 you've got a project there on Amherst 1958 01:32:12,880 --> 01:32:14,960 that I drive down frequently. 1959 01:32:14,960 --> 01:32:18,960 And it's due to be done in May, 2021. 1960 01:32:18,960 --> 01:32:26,480 You finished out Hinkle and Amherst some time ago 1961 01:32:26,480 --> 01:32:28,680 and it took a while. 1962 01:32:28,680 --> 01:32:32,800 But I wanted to ask you about Amherst has finished 1963 01:32:32,800 --> 01:32:36,040 and now there's heavy equipment sitting on the streets 1964 01:32:36,040 --> 01:32:38,360 and the people were told over there 1965 01:32:38,360 --> 01:32:40,080 that they were going to have to tear it up 1966 01:32:40,080 --> 01:32:42,800 and put water lines there. 1967 01:32:42,800 --> 01:32:47,800 And that street's just been done fairly recently. 1968 01:32:47,800 --> 01:32:50,640 And I thought we'd gotten away from doing the streets 1969 01:32:50,640 --> 01:32:53,040 and then tearing them up into the water lines. 1970 01:32:53,040 --> 01:32:55,440 - Ms. Bressel, that's a great question. 1971 01:32:55,440 --> 01:32:57,200 And Susan, what I'll do is I'll turn it over to Preet 1972 01:32:57,200 --> 01:32:59,720 Tim to address the operational questions really quick 1973 01:32:59,720 --> 01:33:01,280 and he can answer that question. 1974 01:33:01,280 --> 01:33:08,560 - Good morning, Preet Tim Deshmukh, 1975 01:33:08,560 --> 01:33:11,240 Deputy Director of Water Utilities. 1976 01:33:11,240 --> 01:33:13,400 To address your question, yes, 1977 01:33:13,400 --> 01:33:17,720 we're coordinating closely with the streets department 1978 01:33:17,720 --> 01:33:19,080 and we're working with them. 1979 01:33:19,080 --> 01:33:23,000 If situations like these do happen 1980 01:33:23,000 --> 01:33:25,440 where a street has gone in a couple of years earlier, 1981 01:33:25,440 --> 01:33:26,560 three or four years early, 1982 01:33:26,560 --> 01:33:29,120 we do work with them. 1983 01:33:29,120 --> 01:33:33,240 We will reassess what the water line conditions are 1984 01:33:33,240 --> 01:33:35,840 and look at this project if that's the case. 1985 01:33:35,840 --> 01:33:40,840 But definitely we intend to not be in the neighborhoods 1986 01:33:40,840 --> 01:33:43,600 over and over and moving forward, 1987 01:33:43,600 --> 01:33:46,440 we're working with streets department 1988 01:33:46,440 --> 01:33:49,520 as mentioned in the presentation of breaking down silos. 1989 01:33:49,520 --> 01:33:52,600 So definitely we'll reassess this project. 1990 01:33:54,160 --> 01:33:58,080 Well, I thought we'd done a pretty good job of following 1991 01:33:58,080 --> 01:34:01,840 along doing the water lines and then the street. 1992 01:34:01,840 --> 01:34:06,840 And then this one pops up and I'm thinking this, 1993 01:34:06,840 --> 01:34:09,560 right now I'm struggling to get into my neighborhood. 1994 01:34:09,560 --> 01:34:13,320 It's going to be better and I understand that very well, 1995 01:34:13,320 --> 01:34:18,320 but now there's, well, Amherst was just one 1996 01:34:18,320 --> 01:34:21,880 I have a particular knowledge about, so thank you. 1997 01:34:23,600 --> 01:34:27,080 - Is there another hand, Charlie? 1998 01:34:27,080 --> 01:34:30,920 - Quick question regarding, I think it's page four, 1999 01:34:30,920 --> 01:34:34,240 the slide titled water project execution 2000 01:34:34,240 --> 01:34:35,920 and management continued. 2001 01:34:35,920 --> 01:34:41,280 And I'm a little concerned by the project activity 2002 01:34:41,280 --> 01:34:46,280 by year 2019 and 20, you showed $258 million. 2003 01:34:46,280 --> 01:34:52,080 If I divide that by 130,000 people in the city, 2004 01:34:52,080 --> 01:34:56,760 I get $1,984 per person. 2005 01:34:56,760 --> 01:35:00,480 Can you tell me what you mean by project activity? 2006 01:35:00,480 --> 01:35:05,480 And that's a pretty staggering dollar. 2007 01:35:05,480 --> 01:35:08,160 - That's a great question. 2008 01:35:08,160 --> 01:35:11,680 And I can even pull that up for the P even visually quick. 2009 01:35:11,680 --> 01:35:12,520 Hang on just a second, 2010 01:35:12,520 --> 01:35:14,360 because this is consistent across the utilities. 2011 01:35:14,360 --> 01:35:15,720 So it's a great question. 2012 01:35:15,720 --> 01:35:19,080 What this is, this is life to date. 2013 01:35:19,080 --> 01:35:21,680 So this actually doesn't represent a spin. 2014 01:35:21,680 --> 01:35:25,920 What this is, is this 186 million and this 258 million 2015 01:35:25,920 --> 01:35:28,920 is expenses and encumbrances for all projects 2016 01:35:28,920 --> 01:35:31,680 in the water utility life today. 2017 01:35:31,680 --> 01:35:33,560 So this doesn't mean, for example, 2018 01:35:33,560 --> 01:35:37,360 we spent 258 million in fiscal year, 1920. 2019 01:35:37,360 --> 01:35:40,400 It does mean, however, that from 1819, 2020 01:35:40,400 --> 01:35:44,080 we had 221 million in expenses and encumbrances. 2021 01:35:44,080 --> 01:35:47,200 That number did increase to 258 in 1920. 2022 01:35:47,200 --> 01:35:50,080 So some of these major projects are the ones 2023 01:35:50,080 --> 01:35:53,080 that accounted for that large increase 2024 01:35:53,080 --> 01:35:54,160 that you're seeing there, 2025 01:35:54,160 --> 01:35:56,200 which is the Lake Louisville Water Treatment Plate upgrade 2026 01:35:56,200 --> 01:35:59,080 and solids handling and at North South Water Main, 2027 01:35:59,080 --> 01:36:01,600 which was a significant project. 2028 01:36:01,600 --> 01:36:02,800 So hopefully it answers your question. 2029 01:36:02,800 --> 01:36:04,320 The large increase was here, 2030 01:36:04,320 --> 01:36:06,240 was mostly attributed to these projects. 2031 01:36:06,240 --> 01:36:10,280 However, the total amount that you see is life to date 2032 01:36:10,280 --> 01:36:12,320 for the water utility. 2033 01:36:12,320 --> 01:36:15,160 Mr. Parker, does that answer your question? 2034 01:36:15,160 --> 01:36:16,000 - It does. 2035 01:36:16,000 --> 01:36:21,000 Yes, the difference is 258 minus 221, 37 million dollars 2036 01:36:21,000 --> 01:36:23,320 in new spending. 2037 01:36:23,320 --> 01:36:24,160 - That is correct. 2038 01:36:24,160 --> 01:36:25,000 Yes, sir. 2039 01:36:25,000 --> 01:36:26,560 That's new spending or new money that's been encumbered 2040 01:36:26,560 --> 01:36:28,760 as those projects continue to be executed. 2041 01:36:28,760 --> 01:36:32,320 So it would be the variance. 2042 01:36:32,320 --> 01:36:37,320 - So if we divide that 36 million by 130,000 people, 2043 01:36:37,320 --> 01:36:43,640 we spent $284 per person last year on water. 2044 01:36:45,760 --> 01:36:47,240 I don't have the math in front of me, Mr. Parker, 2045 01:36:47,240 --> 01:36:48,200 but that's the way it comes out. 2046 01:36:48,200 --> 01:36:49,040 Absolutely. 2047 01:36:49,040 --> 01:36:49,880 That is correct. 2048 01:36:49,880 --> 01:36:51,800 And that'd be attributed to some of those large projects, 2049 01:36:51,800 --> 01:36:53,560 those infrastructure projects that are out there 2050 01:36:53,560 --> 01:36:55,480 that are 10 plus million dollars. 2051 01:36:55,480 --> 01:36:56,880 Absolutely. 2052 01:36:56,880 --> 01:36:57,820 - Okay. Thanks. 2053 01:36:57,820 --> 01:37:00,380 - Other questions? 2054 01:37:00,380 --> 01:37:02,600 All right. 2055 01:37:02,600 --> 01:37:03,880 - Okay. 2056 01:37:03,880 --> 01:37:06,080 And Susan, I will pull up wastewater really quick 2057 01:37:06,080 --> 01:37:08,680 if no one else has any questions for water. 2058 01:37:08,680 --> 01:37:12,800 Same thing here. 2059 01:37:12,800 --> 01:37:13,640 We'll get through it. 2060 01:37:13,640 --> 01:37:14,800 If you have any operational questions, 2061 01:37:14,800 --> 01:37:16,360 pretend we'll come back up and address them. 2062 01:37:16,360 --> 01:37:17,560 If there's something to do with the plant, 2063 01:37:17,560 --> 01:37:20,040 Frank is on the phone that can address them also. 2064 01:37:20,040 --> 01:37:22,480 Also, Kenny Banks is available. 2065 01:37:22,480 --> 01:37:24,840 So I won't go through this every bullet point 2066 01:37:24,840 --> 01:37:25,720 like I did in water, 2067 01:37:25,720 --> 01:37:27,680 but really the project categories, 2068 01:37:27,680 --> 01:37:30,040 we will look at 30 of 74 projects 2069 01:37:30,040 --> 01:37:34,000 that were provided to you in your backup material. 2070 01:37:34,000 --> 01:37:36,440 Those main categories are plant and CIP improvements, 2071 01:37:36,440 --> 01:37:37,920 field service replacements, 2072 01:37:37,920 --> 01:37:40,040 service projects with professional services, 2073 01:37:40,040 --> 01:37:41,560 your state highway relocations, 2074 01:37:41,560 --> 01:37:44,280 and your future projects in your next steps. 2075 01:37:44,280 --> 01:37:46,440 So consistent with the water presentation. 2076 01:37:46,440 --> 01:37:48,400 And one thing we're trying to do 2077 01:37:48,400 --> 01:37:50,120 just for everybody's information 2078 01:37:50,120 --> 01:37:52,400 is really keep this presentation template consistent 2079 01:37:52,400 --> 01:37:54,360 for the utilities moving forward. 2080 01:37:54,360 --> 01:37:56,080 So any feedback you have for us is great. 2081 01:37:56,080 --> 01:37:58,200 And this is the previous project management. 2082 01:37:58,200 --> 01:38:00,440 And you can see between 2015 and 2017. 2083 01:38:00,440 --> 01:38:03,720 So pre 2017, we talked about those silos. 2084 01:38:03,720 --> 01:38:06,880 We talked about those poor project execution. 2085 01:38:06,880 --> 01:38:09,080 Staff's really done a great job in the water utility 2086 01:38:09,080 --> 01:38:11,120 and the finance department breaking down those silos 2087 01:38:11,120 --> 01:38:13,160 and city-wide for that point. 2088 01:38:13,160 --> 01:38:15,200 Some of the large projects for the wastewater utility 2089 01:38:15,200 --> 01:38:17,720 is the Hicker Creek Interceptor 1 and 2, 2090 01:38:17,720 --> 01:38:21,560 the Dry Fork Interceptor, the Elm and Locust Phase 2. 2091 01:38:21,560 --> 01:38:23,640 And then current process post 2017 2092 01:38:23,640 --> 01:38:24,680 as we talked about before, 2093 01:38:24,680 --> 01:38:26,640 really just staff's continued focus on cost, 2094 01:38:26,640 --> 01:38:28,320 containment, transparency, 2095 01:38:28,320 --> 01:38:30,360 and emphasis on the city's core values. 2096 01:38:30,360 --> 01:38:34,800 Project activities through wastewater utility. 2097 01:38:34,800 --> 01:38:35,640 Similar to water, 2098 01:38:35,640 --> 01:38:37,920 we do have some major projects identified here. 2099 01:38:37,920 --> 01:38:41,280 The first one being the Teasley FM 2181 Text Not project, 2100 01:38:41,280 --> 01:38:42,960 which I'm sure everybody's familiar with. 2101 01:38:42,960 --> 01:38:44,600 The Hicker Creek Detention Facility, 2102 01:38:44,600 --> 01:38:47,240 the Footward Drive Relocation I-35, 2103 01:38:47,240 --> 01:38:50,000 the Hicker Creek Lift Station upgrades. 2104 01:38:50,000 --> 01:38:51,880 And then really looking at that project activity, 2105 01:38:51,880 --> 01:38:54,000 which is that spin and encumbered amount. 2106 01:38:54,000 --> 01:38:56,960 In '16, '17, we had 114 million. 2107 01:38:56,960 --> 01:39:00,040 In '19, '20, that increased from 158 million. 2108 01:39:00,040 --> 01:39:02,560 And so the large increase you see between these years 2109 01:39:02,560 --> 01:39:04,240 is mostly attributed to these projects 2110 01:39:04,240 --> 01:39:07,080 that are listed here, four of them total. 2111 01:39:07,080 --> 01:39:11,120 The five main categories for the wastewater utility, 2112 01:39:11,120 --> 01:39:13,520 plant and CIP improvements, field service replacements, 2113 01:39:13,520 --> 01:39:16,280 service projects, your state highway relocations, 2114 01:39:16,280 --> 01:39:18,800 and those future projects that were included in the budget, 2115 01:39:18,800 --> 01:39:22,320 and it'll be coming back to you at a future discussion. 2116 01:39:22,320 --> 01:39:25,520 So same template, same table as in the water utility. 2117 01:39:25,520 --> 01:39:27,000 We have about 10 projects listed 2118 01:39:27,000 --> 01:39:28,960 under plant and CIP improvements. 2119 01:39:28,960 --> 01:39:31,480 We did wanna talk in detail with you, 2120 01:39:31,480 --> 01:39:32,920 two major projects here. 2121 01:39:32,920 --> 01:39:34,960 The Clear Creek Basin Pump Station. 2122 01:39:34,960 --> 01:39:36,760 This is a wastewater lift station construction 2123 01:39:36,760 --> 01:39:38,560 to provide wastewater collection capacity 2124 01:39:38,560 --> 01:39:41,720 in north of loop 288 in the Clear Creek Basin. 2125 01:39:41,720 --> 01:39:43,200 This project will be completed 2126 01:39:43,200 --> 01:39:46,240 in an estimated completion date of May of 2023. 2127 01:39:46,240 --> 01:39:47,960 And the project will be fully funded 2128 01:39:47,960 --> 01:39:49,560 in fiscal year 2022. 2129 01:39:49,560 --> 01:39:52,240 So as you can see that project listed up here, 2130 01:39:52,240 --> 01:39:54,400 you can see the EAC of 13 million, 2131 01:39:54,400 --> 01:39:56,520 the current budget of 493, 2132 01:39:56,520 --> 01:39:59,400 with 3 million coming in funding in 2021, 2133 01:39:59,400 --> 01:40:01,440 and then the rest of it in 2022. 2134 01:40:01,440 --> 01:40:03,320 A lot of times staff tries to implement this funding 2135 01:40:03,320 --> 01:40:04,920 over multiple fiscal years 2136 01:40:04,920 --> 01:40:07,920 to lessen the impact of rate payers in the water utility. 2137 01:40:07,920 --> 01:40:08,760 And the second project 2138 01:40:08,760 --> 01:40:10,840 will be the Hicker Creek lift station upgrade. 2139 01:40:10,840 --> 01:40:14,120 This is replacement of aging wastewater lift stations 2140 01:40:14,120 --> 01:40:16,280 to provide capacity and reliability. 2141 01:40:16,280 --> 01:40:19,480 This project should be completed in December of 2020. 2142 01:40:19,480 --> 01:40:20,480 Similar to water really quick, 2143 01:40:20,480 --> 01:40:22,120 I do wanna point out to the public utility board, 2144 01:40:22,120 --> 01:40:24,880 which is important, the impact fee eligible projects. 2145 01:40:24,880 --> 01:40:27,280 You can't see a few of them here with asterisks 2146 01:40:27,280 --> 01:40:29,680 of the West Weather Storage Facility, 2147 01:40:29,680 --> 01:40:31,640 the Hicker Creek Detention Facility, 2148 01:40:31,640 --> 01:40:33,320 and the Clear Creek Basin Pump Station 2149 01:40:33,320 --> 01:40:35,240 that we talked about shortly ago. 2150 01:40:35,240 --> 01:40:36,440 So we do look at those projects 2151 01:40:36,440 --> 01:40:38,760 and apply the appropriate amount of impact fee funding 2152 01:40:38,760 --> 01:40:39,600 each year. 2153 01:40:39,600 --> 01:40:42,560 Filled service replacement, similar to water, 2154 01:40:42,560 --> 01:40:44,640 these are cash funded projects 2155 01:40:44,640 --> 01:40:46,280 that are budgeted from the operating funds, 2156 01:40:46,280 --> 01:40:47,680 so ultimately funded from the rates. 2157 01:40:47,680 --> 01:40:49,760 So we're not debt funding these replacement projects, 2158 01:40:49,760 --> 01:40:51,440 we're actually cash funding them. 2159 01:40:51,440 --> 01:40:52,840 And the first project I'm gonna discuss with you 2160 01:40:52,840 --> 01:40:54,160 is the Holiday Park 2, 2161 01:40:54,160 --> 01:40:55,480 which is a filled service replacement, 2162 01:40:55,480 --> 01:40:56,920 that's what this stands for. 2163 01:40:56,920 --> 01:40:58,360 It's a sewer main replacement project 2164 01:40:58,360 --> 01:40:59,840 approximately 6,700 feet 2165 01:40:59,840 --> 01:41:03,120 throughout the residential neighborhood of Holiday Park. 2166 01:41:03,120 --> 01:41:06,680 This project should be completed in September of 2020. 2167 01:41:06,680 --> 01:41:09,640 And the second one being Woodland and Cherrywood Sewer. 2168 01:41:09,640 --> 01:41:11,320 This is sewer main replacement project, 2169 01:41:11,320 --> 01:41:13,360 approximately 2,400 feet 2170 01:41:13,360 --> 01:41:15,040 throughout this residential neighborhood. 2171 01:41:15,040 --> 01:41:16,520 And similar, this would be completed here 2172 01:41:16,520 --> 01:41:18,840 in the coming two months in November of 2020. 2173 01:41:18,840 --> 01:41:26,080 Filled service replacement, this is continued. 2174 01:41:26,080 --> 01:41:27,520 Going down the list here, 2175 01:41:27,520 --> 01:41:28,440 I'll put on a couple of them, 2176 01:41:28,440 --> 01:41:30,760 and Preetem can talk to these later if you have questions. 2177 01:41:30,760 --> 01:41:31,600 We do have a couple of them 2178 01:41:31,600 --> 01:41:33,760 with the yellow dot. 2179 01:41:33,760 --> 01:41:35,240 So that yellow dot, just for your reference, 2180 01:41:35,240 --> 01:41:37,360 I know it's different than the green one we've been seeing, 2181 01:41:37,360 --> 01:41:39,120 but mean that there's some risk and opportunity 2182 01:41:39,120 --> 01:41:41,120 in those projects. 2183 01:41:41,120 --> 01:41:42,360 So he can address these in a little while 2184 01:41:42,360 --> 01:41:44,560 if you'd like further information regarding these. 2185 01:41:44,560 --> 01:41:45,640 But the first one I'll talk to you about 2186 01:41:45,640 --> 01:41:48,000 is the Foxcroft Filled Service Replacement. 2187 01:41:48,000 --> 01:41:49,680 This is water main replacement project, 2188 01:41:49,680 --> 01:41:52,560 approximately 3,000 feet from Emerson to Old North. 2189 01:41:52,560 --> 01:41:55,720 This project should be completed in December of 2020. 2190 01:41:55,720 --> 01:41:59,440 And the next one being WWC, which is Amherst, 2191 01:41:59,440 --> 01:42:02,400 which is the sewer main replacement approximately 2,100 feet 2192 01:42:02,400 --> 01:42:04,000 from Georgetown to Hinkle. 2193 01:42:04,000 --> 01:42:09,560 The service projects, those professional agreements 2194 01:42:09,560 --> 01:42:11,080 are projects that we have out there 2195 01:42:11,080 --> 01:42:13,080 for the wastewater utility. 2196 01:42:13,080 --> 01:42:14,480 The first one we have listed 2197 01:42:14,480 --> 01:42:16,760 is the border cowboy pump replacement. 2198 01:42:16,760 --> 01:42:17,960 This is replacement of the pumps 2199 01:42:17,960 --> 01:42:20,000 at the border cowboy lift station. 2200 01:42:20,000 --> 01:42:22,560 And this project should be completed this coming May, 2201 01:42:22,560 --> 01:42:26,520 but it depends on some text on I-35 widening schedule 2202 01:42:26,520 --> 01:42:27,360 and impact. 2203 01:42:27,360 --> 01:42:29,640 We are waiting to work with them on this project. 2204 01:42:29,640 --> 01:42:31,160 The SCADA master plan, 2205 01:42:31,160 --> 01:42:34,120 we are working to develop a master plan for SCADA system 2206 01:42:34,120 --> 01:42:35,560 within the wastewater utility. 2207 01:42:35,560 --> 01:42:37,520 We do plan that be submitted or completed 2208 01:42:37,520 --> 01:42:40,120 about a year from now, September of 2021. 2209 01:42:40,120 --> 01:42:43,400 The textile relocation, 2210 01:42:43,400 --> 01:42:45,760 this project is part of water and wastewater both. 2211 01:42:45,760 --> 01:42:47,200 So you can see the wastewater component 2212 01:42:47,200 --> 01:42:49,160 is a little bit less than water. 2213 01:42:49,160 --> 01:42:53,600 So 2.248 million, current budget is 480,000, 2214 01:42:53,600 --> 01:42:55,640 but that additional funding coming in 2021 2215 01:42:55,640 --> 01:42:58,640 of 1.7 million, and this was included in the budget 2216 01:42:58,640 --> 01:43:00,040 that she recently approved. 2217 01:43:00,040 --> 01:43:03,880 Those future projects, 2218 01:43:03,880 --> 01:43:06,680 this is something you saw in the budgeting process 2219 01:43:06,680 --> 01:43:07,920 and during those meetings we had 2220 01:43:07,920 --> 01:43:10,320 and ultimately the budget you approved. 2221 01:43:10,320 --> 01:43:15,240 There was a total of 40 million in the 2021 wastewater CIP. 2222 01:43:15,240 --> 01:43:16,640 The slide below in these projects 2223 01:43:16,640 --> 01:43:19,520 make up 29.9 million of those. 2224 01:43:19,520 --> 01:43:20,360 Similar to water, 2225 01:43:20,360 --> 01:43:23,760 we have group them into existing projects and new. 2226 01:43:23,760 --> 01:43:25,560 So some of the major ones we've talked about 2227 01:43:25,560 --> 01:43:27,640 before it was a Clear Creek Basin Pump Station 2228 01:43:27,640 --> 01:43:29,480 of 3 million that you saw on that. 2229 01:43:29,480 --> 01:43:31,440 I think it was a second or third slide 2230 01:43:31,440 --> 01:43:33,680 and this additional funding that's coming into that project 2231 01:43:33,680 --> 01:43:35,720 and the current approved budget. 2232 01:43:35,720 --> 01:43:36,840 Moving down the slide a little bit, 2233 01:43:36,840 --> 01:43:39,800 you can see that solids handling project of 8.3 million. 2234 01:43:39,800 --> 01:43:40,640 So this is a new project. 2235 01:43:40,640 --> 01:43:43,440 So we'll set this project up and this funding comes in. 2236 01:43:43,440 --> 01:43:45,040 Let me get that project started. 2237 01:43:45,040 --> 01:43:46,720 And then annual field service replacements. 2238 01:43:46,720 --> 01:43:48,760 This is that amount we budget each year 2239 01:43:48,760 --> 01:43:51,040 for that cash funding of those replacement jobs 2240 01:43:51,040 --> 01:43:54,400 and existing streets or existing right of ways. 2241 01:43:54,400 --> 01:43:55,960 We will bring back a detailed list 2242 01:43:55,960 --> 01:43:58,880 of what this 2.6 makes up in January of 2021 2243 01:43:58,880 --> 01:44:00,560 to the Public Utility Board. 2244 01:44:00,560 --> 01:44:03,400 Then lastly, you can see that bond election of 2019 2245 01:44:03,400 --> 01:44:04,760 coming back to the Public Utility Board 2246 01:44:04,760 --> 01:44:06,360 in the spring of next year also. 2247 01:44:06,360 --> 01:44:10,800 And then the detailed budget discussion in December. 2248 01:44:10,800 --> 01:44:12,240 I'm having that consultant come back, 2249 01:44:12,240 --> 01:44:14,280 go through the rate discussion with you 2250 01:44:14,280 --> 01:44:15,960 in that model that's recently been developed 2251 01:44:15,960 --> 01:44:17,600 with the water and wastewater utility. 2252 01:44:17,600 --> 01:44:19,520 And then coming back to you on a quarterly basis 2253 01:44:19,520 --> 01:44:21,360 with a project update. 2254 01:44:21,360 --> 01:44:23,440 Then I will pull it down for questions. 2255 01:44:25,240 --> 01:44:26,080 Questions? 2256 01:44:26,080 --> 01:44:31,960 I don't think there are any. 2257 01:44:31,960 --> 01:44:32,800 - Okay. 2258 01:44:32,800 --> 01:44:35,080 And our last presentation is electric. 2259 01:44:35,080 --> 01:44:38,120 I'll go through this one. 2260 01:44:38,120 --> 01:44:41,080 Then same thing here. 2261 01:44:41,080 --> 01:44:43,160 We have several staff present to address your questions. 2262 01:44:43,160 --> 01:44:46,600 Chris Lutrix here, Jerry Filder, Terry Nolte. 2263 01:44:46,600 --> 01:44:48,320 They can be happy to come up and address any questions 2264 01:44:48,320 --> 01:44:50,720 that you have at the end of the presentation. 2265 01:44:50,720 --> 01:44:54,160 So the groups for electric are a little bit different 2266 01:44:54,160 --> 01:44:55,240 than water and wastewater. 2267 01:44:55,240 --> 01:44:57,240 Our first one being distribution of substations 2268 01:44:57,240 --> 01:45:00,080 with a large portion of their capital plan. 2269 01:45:00,080 --> 01:45:01,400 I'll review that with you shortly. 2270 01:45:01,400 --> 01:45:03,480 The next one being transmission lines. 2271 01:45:03,480 --> 01:45:05,880 And then we have feeder extensions and improvements, 2272 01:45:05,880 --> 01:45:07,840 new residential, street lighting, 2273 01:45:07,840 --> 01:45:09,240 and then those future projects 2274 01:45:09,240 --> 01:45:11,040 we discussed in water and wastewater. 2275 01:45:11,040 --> 01:45:14,760 Previous process, a little bit different 2276 01:45:14,760 --> 01:45:15,680 than water and wastewater. 2277 01:45:15,680 --> 01:45:17,640 So previously the overall system transmission 2278 01:45:17,640 --> 01:45:21,000 and distribution CIP was created. 2279 01:45:21,000 --> 01:45:23,120 Consultants were utilized to manage the progress 2280 01:45:23,120 --> 01:45:24,920 of CIP projects. 2281 01:45:24,920 --> 01:45:28,000 Really the new process and moving forward here recently 2282 01:45:28,000 --> 01:45:30,680 in the last few years, we have increased engineering 2283 01:45:30,680 --> 01:45:34,400 and budgetary review of projects, need, cost, and timing. 2284 01:45:34,400 --> 01:45:36,240 This is a perfect example, as Tony mentioned earlier 2285 01:45:36,240 --> 01:45:38,920 in the meeting, the elimination of the EECL substation. 2286 01:45:38,920 --> 01:45:42,040 This did save rate payers an estimated 17 million, 2287 01:45:42,040 --> 01:45:44,280 which that discussion did come forward 2288 01:45:44,280 --> 01:45:46,360 to the Public Utility Board and City Council. 2289 01:45:46,360 --> 01:45:48,280 And then we had that comprehensive capital projects 2290 01:45:48,280 --> 01:45:51,240 and planning implementation as part of that budgeting process. 2291 01:45:54,120 --> 01:45:57,080 Project activity for the electric utility. 2292 01:45:57,080 --> 01:46:02,080 So you can see in '16, '17, we had 237.5 million. 2293 01:46:02,080 --> 01:46:06,280 In '19, '20, this increased to 312.7 million. 2294 01:46:06,280 --> 01:46:08,920 So you can see a significant increase over these years 2295 01:46:08,920 --> 01:46:11,360 as we've implemented and put some new substations 2296 01:46:11,360 --> 01:46:13,600 and transmission lines in place. 2297 01:46:13,600 --> 01:46:17,200 The six groups within the electric utility, 2298 01:46:17,200 --> 01:46:20,080 you can see distribution substations, transmission lines, 2299 01:46:20,080 --> 01:46:21,680 feeder extensions and improvements, 2300 01:46:21,680 --> 01:46:23,440 new residential, street lighting, 2301 01:46:23,440 --> 01:46:25,600 and those future projects I'll review with you. 2302 01:46:25,600 --> 01:46:30,760 So the table for distribution substations, 2303 01:46:30,760 --> 01:46:33,080 very top one, which we'll discuss in detail with you, 2304 01:46:33,080 --> 01:46:36,040 is that Hickory Substation Construction Project. 2305 01:46:36,040 --> 01:46:38,800 It does have an estimated completion date of 2023, 2306 01:46:38,800 --> 01:46:40,840 which I think has been mentioned earlier in the meeting. 2307 01:46:40,840 --> 01:46:43,760 The EAC is currently 34.7 million, 2308 01:46:43,760 --> 01:46:45,920 but the current budget is 6.5. 2309 01:46:45,920 --> 01:46:47,800 We do have anticipated funding, 2310 01:46:47,800 --> 01:46:49,280 as we talked about in the budgeting process, 2311 01:46:49,280 --> 01:46:54,280 coming up in 2021 at 32.1, and then $900,000 in 2022, 2312 01:46:54,280 --> 01:46:56,600 which would fund this project. 2313 01:46:56,600 --> 01:47:00,720 Then you can see Brinker and Underwood, 2314 01:47:00,720 --> 01:47:03,320 which are some future projects that are out there also. 2315 01:47:03,320 --> 01:47:07,920 Transmission lines, we have several of them listed here. 2316 01:47:07,920 --> 01:47:10,120 The first one being the RD Wells to Hickory, 2317 01:47:10,120 --> 01:47:11,480 transmission tie-in. 2318 01:47:11,480 --> 01:47:14,520 This is the reroute of the transmission line of 138 KV. 2319 01:47:14,520 --> 01:47:17,440 And then the Locust to Hickory transmission line, 2320 01:47:17,440 --> 01:47:19,360 this is a rebuild of the transmission line 2321 01:47:19,360 --> 01:47:21,280 that connects New Hickory Substation 2322 01:47:21,280 --> 01:47:23,440 to the new Locust Substation. 2323 01:47:23,440 --> 01:47:27,040 And this has completion date, December of 2022. 2324 01:47:27,040 --> 01:47:29,520 And this project will be fully funded in 2023. 2325 01:47:29,520 --> 01:47:31,560 So if you go back up to this list up here, 2326 01:47:31,560 --> 01:47:34,440 you can see the Locust to Hickory Transmission Line Project 2327 01:47:34,440 --> 01:47:36,680 fully being funded in 2023. 2328 01:47:36,680 --> 01:47:41,720 Next one being your Hickory transmission, 2329 01:47:41,720 --> 01:47:44,080 UG and OG reconfiguration, 2330 01:47:44,080 --> 01:47:46,120 which is the reconfiguration of transmission lines 2331 01:47:46,120 --> 01:47:48,400 entering the New Hickory Substation. 2332 01:47:48,400 --> 01:47:51,400 And this project should be completed in December of 2023. 2333 01:47:51,400 --> 01:47:58,440 New residential, so we have about five projects listed here. 2334 01:47:58,440 --> 01:48:01,400 They all do have a green schedule indicator. 2335 01:48:01,400 --> 01:48:04,800 The first one being your DHS campus phase one. 2336 01:48:04,800 --> 01:48:07,240 This was the extend the electric facilities for feeders 2337 01:48:07,240 --> 01:48:09,360 to tie into the Bronco way to provide service 2338 01:48:09,360 --> 01:48:10,920 to the new Denton High School. 2339 01:48:10,920 --> 01:48:12,520 This project was recently completed, 2340 01:48:12,520 --> 01:48:13,720 but we didn't wanna bring it to your attention 2341 01:48:13,720 --> 01:48:15,760 that that has been completed. 2342 01:48:15,760 --> 01:48:19,160 The next one being your pros, your Windsor Apartments, 2343 01:48:19,160 --> 01:48:21,480 which is the extend electric facility 2344 01:48:21,480 --> 01:48:25,760 to 330 new unit apartment complex at Windsor and I-35. 2345 01:48:25,760 --> 01:48:28,880 Estimated completion date is this coming December, 2346 01:48:28,880 --> 01:48:30,120 so in a couple of months. 2347 01:48:30,120 --> 01:48:33,080 And the next one is street lighting. 2348 01:48:33,080 --> 01:48:34,040 So this is something we mentioned 2349 01:48:34,040 --> 01:48:35,600 to the Public Utility Board and City Council 2350 01:48:35,600 --> 01:48:37,040 during the budgeting process. 2351 01:48:37,040 --> 01:48:39,600 So the priorities set forward by both. 2352 01:48:39,600 --> 01:48:41,200 So we have grouped the street lighting projects 2353 01:48:41,200 --> 01:48:42,880 into three different categories, 2354 01:48:42,880 --> 01:48:45,240 but the first two have an amount budgeted. 2355 01:48:45,240 --> 01:48:47,000 The first one being existing street lighting 2356 01:48:47,000 --> 01:48:48,760 and LED upgrade. 2357 01:48:48,760 --> 01:48:53,360 We currently have 1 million EAC for this project. 2358 01:48:53,360 --> 01:48:54,680 Let me go back. 2359 01:48:54,680 --> 01:48:57,560 With 2021, that 1 million coming in and funding. 2360 01:48:57,560 --> 01:49:00,040 And the additional residential LED lighting, 2361 01:49:00,040 --> 01:49:03,280 currently 3.7 million EAC. 2362 01:49:03,280 --> 01:49:06,520 You can see 3.7 million coming in in 2021 2363 01:49:06,520 --> 01:49:08,160 and in each of the future years. 2364 01:49:08,160 --> 01:49:13,760 Some future projects that are coming up. 2365 01:49:13,760 --> 01:49:15,200 And there's actually two slides in electric 2366 01:49:15,200 --> 01:49:16,440 to talk about future projects. 2367 01:49:16,440 --> 01:49:18,600 The first one being the I-35 East relocation 2368 01:49:18,600 --> 01:49:20,640 between Mayhill and Loop 288. 2369 01:49:20,640 --> 01:49:23,240 Estimated cost of this project is 1 million. 2370 01:49:23,240 --> 01:49:27,040 And estimated completion is October of 2021. 2371 01:49:27,040 --> 01:49:29,200 Bonnie Brafe's phase four relocation 2372 01:49:29,200 --> 01:49:33,480 between US 380 and US 77. 2373 01:49:33,480 --> 01:49:35,520 Estimated cost is 500,000 2374 01:49:35,520 --> 01:49:38,440 with the completion date of July of 2021. 2375 01:49:38,440 --> 01:49:39,520 Skipping down the page a little bit, 2376 01:49:39,520 --> 01:49:41,480 you can see the Kings Ridge phase one, 2377 01:49:41,480 --> 01:49:43,520 which is 130 lot residential development 2378 01:49:43,520 --> 01:49:44,880 in Toronto Way. 2379 01:49:44,880 --> 01:49:47,880 Estimated cost of this project is 250,000 2380 01:49:47,880 --> 01:49:51,040 with an estimated completion of September of 2021. 2381 01:49:51,040 --> 01:49:55,120 And then we'll continue to bring these back to you. 2382 01:49:55,120 --> 01:49:58,480 Actually at that next quarterly update in January, 2383 01:49:58,480 --> 01:50:01,080 we'll touch on these projects a little bit more with you. 2384 01:50:01,080 --> 01:50:02,120 Future project summary. 2385 01:50:02,120 --> 01:50:04,560 So the 2021 CIP for the electric utility 2386 01:50:04,560 --> 01:50:07,600 included 65 million in projects. 2387 01:50:07,600 --> 01:50:09,960 The six projects listed here below 2388 01:50:09,960 --> 01:50:13,080 make up 55.8 of those projects. 2389 01:50:13,080 --> 01:50:13,920 As we talked about, 2390 01:50:13,920 --> 01:50:15,280 you got the distribution substations 2391 01:50:15,280 --> 01:50:17,480 of 6.8 million coming in, 2392 01:50:17,480 --> 01:50:19,800 which is an existing project that we reviewed. 2393 01:50:19,800 --> 01:50:21,440 Your feeders, extensions and improvements, 2394 01:50:21,440 --> 01:50:24,960 9.45 million, which is existing projects. 2395 01:50:24,960 --> 01:50:26,280 And then the street lighting 2396 01:50:26,280 --> 01:50:27,960 that we talked about with 3 million. 2397 01:50:27,960 --> 01:50:28,960 If you notice on the slide, 2398 01:50:28,960 --> 01:50:31,320 it actually said 3.6, if I'm not mistaken, 2399 01:50:31,320 --> 01:50:33,200 that through 600,000 additional funding 2400 01:50:33,200 --> 01:50:34,280 into existing funding, 2401 01:50:34,280 --> 01:50:36,640 the staff will be reallocated to this purpose. 2402 01:50:36,640 --> 01:50:38,000 So this 3 million will be coming in 2403 01:50:38,000 --> 01:50:40,600 in addition to that reallocation of funds. 2404 01:50:40,600 --> 01:50:43,920 Transmission line of 12 million, 12.1 million, 2405 01:50:43,920 --> 01:50:47,000 and then transmission substations of 20.7. 2406 01:50:47,000 --> 01:50:50,440 And then this is the detailed budget 2407 01:50:50,440 --> 01:50:52,080 and rate discussions coming up in December. 2408 01:50:52,080 --> 01:50:54,240 And then the next quarterly financial project update 2409 01:50:54,240 --> 01:50:56,080 will be in January, 2021. 2410 01:50:56,080 --> 01:50:58,960 That concludes electric. 2411 01:50:58,960 --> 01:51:01,480 And I will pull it down for questions, Susan. 2412 01:51:01,480 --> 01:51:02,720 - Any questions? 2413 01:51:02,720 --> 01:51:07,200 I don't see any. 2414 01:51:07,200 --> 01:51:10,160 What do you need from us? 2415 01:51:10,160 --> 01:51:11,200 - No direction, Susan. 2416 01:51:11,200 --> 01:51:14,040 This was simply an update based at PUV's request 2417 01:51:14,040 --> 01:51:14,880 of getting that. 2418 01:51:14,880 --> 01:51:16,720 I think we had a couple of requests for it in the past. 2419 01:51:16,720 --> 01:51:18,600 So this will come back to the public utility board 2420 01:51:18,600 --> 01:51:19,520 on a quarterly basis. 2421 01:51:19,520 --> 01:51:21,000 We just wanted to get the template in front of you 2422 01:51:21,000 --> 01:51:22,120 and get your feedback today. 2423 01:51:22,120 --> 01:51:24,160 So that's all we needed. 2424 01:51:24,160 --> 01:51:25,000 - Thank you. 2425 01:51:25,000 --> 01:51:27,120 All right then. 2426 01:51:27,120 --> 01:51:29,760 I will call us back into open session. 2427 01:51:29,760 --> 01:51:35,640 And then we need a motion to adjourn into our closed session. 2428 01:51:35,640 --> 01:51:37,160 Is that correct, Larry? 2429 01:51:38,400 --> 01:51:41,640 - No, actually what we'll do is you will just, 2430 01:51:41,640 --> 01:51:43,240 you'll just go into closed session 2431 01:51:43,240 --> 01:51:45,200 and then we'll need to come back into open session. 2432 01:51:45,200 --> 01:51:46,040 - Come back in and then go in. 2433 01:51:46,040 --> 01:51:47,840 - From closed to adjourn, yes. 2434 01:51:47,840 --> 01:51:50,080 Yeah, we're just, and to let everybody know, 2435 01:51:50,080 --> 01:51:51,960 we're just doing the same thing council is doing. 2436 01:51:51,960 --> 01:51:53,000 So we're having all the boards 2437 01:51:53,000 --> 01:51:55,320 and commissions follow the same path. 2438 01:51:55,320 --> 01:51:56,160 - That's fine. 2439 01:51:56,160 --> 01:51:58,040 Just keep me doing what I'm supposed to do. 2440 01:51:58,040 --> 01:51:59,720 - Okay. 2441 01:51:59,720 --> 01:52:02,120 - All right, we will adjourn into closed session. 2442 01:52:02,120 --> 01:52:04,880 - And Susan. 2443 01:52:09,000 --> 01:52:10,160 - All right, Susan. 2444 01:52:10,160 --> 01:52:11,000 - All right. 2445 01:52:11,000 --> 01:52:11,840 And we're back. 2446 01:52:11,840 --> 01:52:13,480 We are adjourning the closed meeting 2447 01:52:13,480 --> 01:52:15,800 and going back into open session. 2448 01:52:15,800 --> 01:52:20,520 At this point, do we have a motion to adjourn our meeting? 2449 01:52:20,520 --> 01:52:21,360 - So moved. 2450 01:52:21,360 --> 01:52:22,200 - Second. 2451 01:52:22,200 --> 01:52:25,560 - Second, all in favor, aye. 2452 01:52:25,560 --> 01:52:26,400 - Aye. 2453 01:52:26,400 --> 01:52:29,880 - Okay, we are adjourned, 1120. 2454 01:52:29,880 --> 01:52:30,720 - Thanks.