WEBVTT 00:00:00.000 --> 00:00:03.160 - All right, Susan, you're on. 00:00:03.160 --> 00:00:06.640 - All right, it is nine o'clock on September 28th. 00:00:06.640 --> 00:00:08.540 We do have a virtual quorum. 00:00:08.540 --> 00:00:10.640 So we're called to order the City of Denton 00:00:10.640 --> 00:00:12.720 Public Utility Board meeting. 00:00:12.720 --> 00:00:15.680 The first item on the agenda is the consent agenda. 00:00:15.680 --> 00:00:18.600 Items A through C. 00:00:18.600 --> 00:00:21.600 Does any board member wish to pull any of the items? 00:00:21.600 --> 00:00:26.320 I do believe that's the first. 00:00:26.320 --> 00:00:30.560 Do we have a motion to approve items A through C 00:00:30.560 --> 00:00:32.160 on the consent agenda? 00:00:32.160 --> 00:00:34.680 - Approved, so moved. 00:00:34.680 --> 00:00:36.200 - Second. 00:00:36.200 --> 00:00:37.040 - Karen seconded. 00:00:37.040 --> 00:00:38.840 All in favor say aye. 00:00:38.840 --> 00:00:39.920 - Aye. 00:00:39.920 --> 00:00:40.880 - Opposed? 00:00:40.880 --> 00:00:42.600 Motion carries. 00:00:42.600 --> 00:00:45.680 Next item are items of individual consideration. 00:00:45.680 --> 00:00:50.040 Consider the approval of the September 14th, 2020 minutes. 00:00:50.040 --> 00:00:52.700 Does anyone have any changes or corrections? 00:00:55.360 --> 00:00:58.280 All right, do we have a motion to approve the minutes? 00:00:58.280 --> 00:00:59.960 - So moved. - So moved. 00:00:59.960 --> 00:01:00.800 - Second. 00:01:00.800 --> 00:01:02.680 - I think that was Karen and Charlie seconding. 00:01:02.680 --> 00:01:04.760 Okay, all in favor say aye. 00:01:04.760 --> 00:01:06.600 - Aye. 00:01:06.600 --> 00:01:07.960 - Okay, motion carries. 00:01:07.960 --> 00:01:10.520 Item B, consider recommendation and adoption 00:01:10.520 --> 00:01:13.560 of an ordinance of the City of Denton, Texas, 00:01:13.560 --> 00:01:15.320 a home rule municipal corporation, 00:01:15.320 --> 00:01:17.800 authorizing the approval of the second amendment 00:01:17.800 --> 00:01:20.320 to professional services agreement 00:01:20.320 --> 00:01:24.600 between the City of Denton and SGS Engineering LLC, 00:01:24.600 --> 00:01:27.280 amending the contract approved by the City Council 00:01:27.280 --> 00:01:30.720 on July 19th, 2011 in the not to exceed amount 00:01:30.720 --> 00:01:33.400 of $1,002,060. 00:01:33.400 --> 00:01:38.720 I'm not going to read the whole thing, 00:01:38.720 --> 00:01:41.480 but the new second amendment expenditure amount 00:01:41.480 --> 00:01:45.080 not to exceed 3.5 million with the total contract amount 00:01:45.080 --> 00:01:49.680 not to exceed $11,435,000. 00:01:49.680 --> 00:01:50.520 Go ahead. 00:01:55.600 --> 00:01:57.560 - Is there a presentation? 00:01:57.560 --> 00:02:00.480 - Yes, we have Jerry Fildler 00:02:00.480 --> 00:02:02.200 that's going to do a presentation. 00:02:02.200 --> 00:02:05.280 - You may be on mute. 00:02:05.280 --> 00:02:08.280 - Am I mute? 00:02:08.280 --> 00:02:09.520 - No. - No. 00:02:09.520 --> 00:02:11.480 - Jerry was on mute, the staff member. 00:02:11.480 --> 00:02:12.320 - Okay. 00:02:12.320 --> 00:02:18.880 - Presentation. 00:02:18.880 --> 00:02:20.920 - Looks better. 00:02:20.920 --> 00:02:23.680 - Oh, this one up here. 00:02:24.600 --> 00:02:25.440 - Okay. 00:02:25.440 --> 00:02:37.520 - I'm getting there. 00:02:37.520 --> 00:02:41.360 Well, good morning, Jerry Fildler. 00:02:41.360 --> 00:02:43.400 I am the division engineering manager 00:02:43.400 --> 00:02:45.000 for municipal electric. 00:02:45.000 --> 00:02:48.880 Today we're coming before the PUB 00:02:48.880 --> 00:02:51.000 to talk about a second amendment 00:02:51.000 --> 00:02:53.760 to the SGS engineering contract. 00:02:55.600 --> 00:02:58.240 To kind of go over a little bit of the information 00:02:58.240 --> 00:03:00.400 that they provide for us, 00:03:00.400 --> 00:03:03.520 some of the professional services SGS provides for us 00:03:03.520 --> 00:03:05.440 is they provide the engineered drawings 00:03:05.440 --> 00:03:08.920 for all of our substation and transmission line construction. 00:03:08.920 --> 00:03:11.640 This includes the structural steel, electrical design, 00:03:11.640 --> 00:03:13.520 grounding, and static protection, 00:03:13.520 --> 00:03:17.480 as well as the relay and system protection design. 00:03:17.480 --> 00:03:19.280 They also provide some construction 00:03:19.280 --> 00:03:21.440 inspection services for us. 00:03:21.440 --> 00:03:23.400 And again, some of these are ensure 00:03:23.400 --> 00:03:24.840 the construction meets the design 00:03:24.840 --> 00:03:27.200 and regulatory requirements 00:03:27.200 --> 00:03:30.040 and maintain the records of the daily weather 00:03:30.040 --> 00:03:31.680 and construction activities. 00:03:31.680 --> 00:03:38.040 A little bit of the scope of this project, 00:03:38.040 --> 00:03:40.240 as you can see from this next slide. 00:03:40.240 --> 00:03:42.760 Some of these are the items that we have proposed 00:03:42.760 --> 00:03:45.480 for SGS to perform for us. 00:03:45.480 --> 00:03:49.360 So the additional funds in the amount of $3,500,000 00:03:49.360 --> 00:03:52.320 will provide these services for CIP projects. 00:03:52.320 --> 00:03:55.440 For the substation structural and electrical designs, 00:03:55.440 --> 00:03:58.680 transmission line designs, protection system designs, 00:03:58.680 --> 00:04:01.840 and other engineering related support as required. 00:04:01.840 --> 00:04:04.000 And we've given you a list of the projects 00:04:04.000 --> 00:04:06.120 that we have identified for this contract. 00:04:06.120 --> 00:04:12.600 So at this time staff recommends approval 00:04:12.600 --> 00:04:16.960 of the amendment to the existing agreement with SGS 00:04:16.960 --> 00:04:20.920 in the amount of not to exceed a $3,500,000 00:04:20.920 --> 00:04:25.520 for a total contract value of $11,435,000. 00:04:25.520 --> 00:04:28.200 The contract will be structured as an hourly contract 00:04:28.200 --> 00:04:31.720 so that the charges for services rendered will be billed 00:04:31.720 --> 00:04:35.200 and there is no minimum amount guaranteed to the vendor, 00:04:35.200 --> 00:04:36.400 to the engineering firm. 00:04:36.400 --> 00:04:39.840 Have any questions? 00:04:39.840 --> 00:04:42.440 - Yes, I have a question. 00:04:42.440 --> 00:04:43.360 - Okay. 00:04:43.360 --> 00:04:48.360 - On this substation projects, what does RTU mean? 00:04:51.920 --> 00:04:54.400 - I'm having a brain seizure. 00:04:54.400 --> 00:04:56.520 Relay Terminal Unit. 00:04:56.520 --> 00:05:01.400 It's basically the communication, remote telemetry unit. 00:05:01.400 --> 00:05:03.320 Sorry, I'm getting it off out here. 00:05:03.320 --> 00:05:06.240 It is basically the thing that helps us communicate 00:05:06.240 --> 00:05:09.000 with the SCADA system between the head in office 00:05:09.000 --> 00:05:12.160 and the equipment out in the field. 00:05:12.160 --> 00:05:13.320 - Okay, thank you. 00:05:13.320 --> 00:05:15.360 - I have a question. 00:05:17.880 --> 00:05:21.360 It says in the agenda description for this item 00:05:21.360 --> 00:05:24.960 that the majority of work within transmission category 00:05:24.960 --> 00:05:29.840 will be recovered through the TCOS provisions. 00:05:29.840 --> 00:05:33.920 But in the presentation, it says all will be recovered. 00:05:33.920 --> 00:05:38.000 Those seem to be two contradictory statements, 00:05:38.000 --> 00:05:41.080 which will all of this be recovered 00:05:41.080 --> 00:05:43.520 or will only a portion of it be recovered? 00:05:43.520 --> 00:05:46.640 - The vast majority will be recovered. 00:05:46.640 --> 00:05:49.160 There may be some items once we get into the construction 00:05:49.160 --> 00:05:51.040 that aren't covered by TCOS, 00:05:51.040 --> 00:05:53.480 but for the vast majority of everything 00:05:53.480 --> 00:05:55.080 that we have associated with this contract 00:05:55.080 --> 00:05:57.120 should be recovered through TCOS. 00:05:57.120 --> 00:05:59.680 - Okay, and follow-up question to that is, 00:05:59.680 --> 00:06:04.600 how long does it actually take Denton to receive the money 00:06:04.600 --> 00:06:07.120 through the TCOS process? 00:06:07.120 --> 00:06:13.880 - About 18 months. 00:06:13.880 --> 00:06:16.800 A year and a half after we spend it, we get it back. 00:06:16.800 --> 00:06:18.240 That's correct? 00:06:18.240 --> 00:06:20.760 - Yes, sir, that's what I'm understanding. 00:06:20.760 --> 00:06:22.120 - Okay. 00:06:22.120 --> 00:06:25.120 - Yeah, Mr. Baffert, one of the things that I'll mention 00:06:25.120 --> 00:06:29.320 is that we've historically filed an interim filing 00:06:29.320 --> 00:06:32.760 for those recoveries on an annual basis. 00:06:32.760 --> 00:06:34.080 Because of some recent changes, 00:06:34.080 --> 00:06:36.840 we're now going to buy annual filing. 00:06:36.840 --> 00:06:40.720 So we think that that timeframe may be a little shortened. 00:06:42.240 --> 00:06:45.320 - Okay, just out of curiosity, how does this, Tony, 00:06:45.320 --> 00:06:49.200 how does this work into your budget planning 00:06:49.200 --> 00:06:50.720 from year to year? 00:06:50.720 --> 00:06:55.720 - Well, we certainly assume a growth projection 00:06:55.720 --> 00:06:59.520 in that five-year forecast. 00:06:59.520 --> 00:07:01.280 I will tell you, we've also assumed 00:07:01.280 --> 00:07:06.280 a slightly lower return on investment 00:07:06.280 --> 00:07:08.720 than what we're currently receiving, 00:07:08.720 --> 00:07:10.600 just because at any point, 00:07:10.600 --> 00:07:15.360 the commission could call us in for a full rate case. 00:07:15.360 --> 00:07:16.960 Well, we don't anticipate one, 00:07:16.960 --> 00:07:18.680 but from a budgetary standpoint, 00:07:18.680 --> 00:07:21.360 we've kind of taken a more conservative approach. 00:07:21.360 --> 00:07:24.280 - Okay, thank you. 00:07:24.280 --> 00:07:25.120 - Yes, sir. 00:07:25.120 --> 00:07:28.600 - Go ahead, Karen, I'll let you go first. 00:07:28.600 --> 00:07:30.240 - Oh, thanks. 00:07:30.240 --> 00:07:33.040 Just a sort of procedural question for staff. 00:07:33.040 --> 00:07:38.160 Why is this contract amendment 00:07:38.160 --> 00:07:42.400 on individual approval part of the agenda? 00:07:42.400 --> 00:07:45.200 And we, but we've also have the same kind 00:07:45.200 --> 00:07:49.440 of contract amendments on consent agenda. 00:07:49.440 --> 00:07:51.840 What's the, what are the criteria 00:07:51.840 --> 00:07:54.240 for where it shows up on the agenda? 00:07:54.240 --> 00:07:57.840 - Well, it's really on a case-by-case basis, 00:07:57.840 --> 00:07:59.440 but a lot of times it's, 00:07:59.440 --> 00:08:01.640 what's driving it is the dollar amount. 00:08:01.640 --> 00:08:05.880 And so depending on dollar amount, we're placing. 00:08:05.880 --> 00:08:07.240 - There's a dollar cutoff? 00:08:09.160 --> 00:08:12.040 - It's not a hard dollar amount, it's more subjective. 00:08:12.040 --> 00:08:13.800 The staff is trying to determine 00:08:13.800 --> 00:08:15.160 whether it needs to be in consent agenda, 00:08:15.160 --> 00:08:17.160 or if it's going to be pulled anyways, 00:08:17.160 --> 00:08:18.960 we go ahead and do that proactively. 00:08:18.960 --> 00:08:22.160 - Okay, I guess that's fine, 00:08:22.160 --> 00:08:24.880 because of course consent agenda goes faster, 00:08:24.880 --> 00:08:28.120 but I just want to make sure that things don't get snuck 00:08:28.120 --> 00:08:30.320 into those huge consent agendas. 00:08:30.320 --> 00:08:35.000 - Correct, we pay very close attention to those, yes. 00:08:35.000 --> 00:08:36.560 - Okay, thanks, Tony. 00:08:36.560 --> 00:08:38.920 - All right, I'm sure if this was on consent, 00:08:38.920 --> 00:08:42.160 one of us would have pulled it at three and a half million. 00:08:42.160 --> 00:08:43.160 Charlie, go ahead. 00:08:43.160 --> 00:08:46.960 - I think I know the answer to this, but just to check, 00:08:46.960 --> 00:08:51.520 I noticed the approvals date back to 2001, 00:08:51.520 --> 00:08:53.880 and this is a third amendment. 00:08:53.880 --> 00:08:57.960 I assume the reason we're doing that via amendment, 00:08:57.960 --> 00:09:02.960 rather than via a new ordinance is just for expediency? 00:09:05.040 --> 00:09:06.640 - Yes, sir, it is for expediency, 00:09:06.640 --> 00:09:09.520 but just to let you guys know that we expect 00:09:09.520 --> 00:09:12.080 for all the ones that I'm gonna visit with you today, 00:09:12.080 --> 00:09:14.320 we expect the funding to last about three or four years, 00:09:14.320 --> 00:09:17.000 and we are gonna go out for another RFQ at that time, 00:09:17.000 --> 00:09:19.080 just to make sure that we are getting 00:09:19.080 --> 00:09:21.280 the best deal for the city. 00:09:21.280 --> 00:09:22.440 - Okay, thank you. 00:09:22.440 --> 00:09:24.720 - Thank you. - I'll move approval. 00:09:24.720 --> 00:09:26.400 Oh, I'm sorry, you had a question. 00:09:26.400 --> 00:09:29.120 - No, I actually had the same question you had, Charlie, 00:09:29.120 --> 00:09:31.400 just so that the public understood what was going on. 00:09:31.400 --> 00:09:33.400 So, no, you're fine. 00:09:33.400 --> 00:09:35.400 Any other questions? - In that case, I'll move approval. 00:09:35.400 --> 00:09:37.280 - Oh, wait, Billy's got a question, sorry. 00:09:37.280 --> 00:09:38.800 Go ahead, Billy. - Go ahead, Billy. 00:09:38.800 --> 00:09:40.960 - I apologize for my tardiness here, 00:09:40.960 --> 00:09:45.000 but my question, it's probably in here, I didn't find it. 00:09:45.000 --> 00:09:47.320 What's the estimated construction cost? 00:09:47.320 --> 00:09:54.840 - The contract value was $3.3 and a half million dollars, 00:09:54.840 --> 00:09:57.160 the amendment value. 00:09:57.160 --> 00:09:59.560 The not to exceed for the entire contract, 00:09:59.560 --> 00:10:04.560 if this gets approved, is $11,435,000. 00:10:04.560 --> 00:10:06.880 - What's the estimated construction cost? 00:10:06.880 --> 00:10:11.680 - This is engineering services. 00:10:11.680 --> 00:10:12.520 It's not really. 00:10:12.520 --> 00:10:15.560 - Okay. 00:10:15.560 --> 00:10:16.520 - Billy, to answer your question, Billy, 00:10:16.520 --> 00:10:18.520 it's for several projects. 00:10:18.520 --> 00:10:20.680 It's not just a single project. 00:10:20.680 --> 00:10:21.760 - Oh. 00:10:21.760 --> 00:10:24.240 - Yeah, the project that the engineering is for 00:10:24.240 --> 00:10:26.280 is what I was getting at. 00:10:26.280 --> 00:10:29.760 So the projects, do you have an estimate on all those? 00:10:29.760 --> 00:10:35.040 - I can provide that for you if I can figure this out again. 00:10:35.040 --> 00:10:40.720 - Like I said, I apologize for my tardiness. 00:10:40.720 --> 00:10:43.800 - So I brought the slide back up. 00:10:43.800 --> 00:10:45.920 This is the scope of what we've included 00:10:45.920 --> 00:10:49.200 in this amendment for all the substation projects 00:10:49.200 --> 00:10:50.880 and transmission line projects. 00:10:50.880 --> 00:10:55.920 - There's no construction estimate 00:10:55.920 --> 00:10:57.040 for these projects? 00:10:57.040 --> 00:11:03.400 - We can provide you the actual proposal from the vendor 00:11:03.400 --> 00:11:05.640 that has these things broken down, 00:11:05.640 --> 00:11:08.400 but we just combined them here, I guess for expediency, 00:11:08.400 --> 00:11:11.200 just to kind of give you an idea of what's all included. 00:11:11.200 --> 00:11:13.480 - Okay, and I'm getting at this 00:11:13.480 --> 00:11:15.520 because there's usually, when you're putting together 00:11:15.520 --> 00:11:19.360 any project, obviously, there's a lot of engineering 00:11:19.360 --> 00:11:22.480 involved, and I like to get an idea of usually 00:11:22.480 --> 00:11:26.520 what percentage of cost the engineering is 00:11:26.520 --> 00:11:28.000 of the actual project. 00:11:28.000 --> 00:11:35.360 - It's usually a five to 10% of the project, Billy, 00:11:35.360 --> 00:11:37.560 but I will tell you, some of these projects, 00:11:37.560 --> 00:11:40.360 we're gonna talk about in detail when Nick comes up here 00:11:40.360 --> 00:11:42.160 and we go through the CIP program, 00:11:42.160 --> 00:11:44.160 so you'll see many of these projects there 00:11:44.160 --> 00:11:48.760 with the engineering's estimate at completion 00:11:48.760 --> 00:11:51.480 that'll kind of give you the information you're looking for. 00:11:51.480 --> 00:11:53.000 - Okay, fair enough, thank you. 00:11:53.000 --> 00:12:00.920 - All right, now, Charlie, would you like to move approval? 00:12:00.920 --> 00:12:05.080 - I will reconfirm my motion to approve. 00:12:05.080 --> 00:12:06.240 - Do we have a second? 00:12:06.240 --> 00:12:09.920 Oh, Ed seconds, all in favor say aye. 00:12:09.920 --> 00:12:11.800 - Aye. - Opposed? 00:12:11.800 --> 00:12:13.960 - Aye. - Motion carries. 00:12:13.960 --> 00:12:16.560 Next item is consider recommending the adoption 00:12:16.560 --> 00:12:18.240 of an ordinance of the city of Denton, 00:12:18.240 --> 00:12:21.760 a Texas home rule municipal corporation authorizing 00:12:21.760 --> 00:12:23.280 the approval of a third amendment 00:12:23.280 --> 00:12:24.920 to the professional service agreement 00:12:24.920 --> 00:12:28.280 between the city of Denton and Black and Veatch Corporation 00:12:28.280 --> 00:12:31.240 amending the contract approved by city council 00:12:31.240 --> 00:12:36.240 on November 6, 2012 in the not to exceed amount of 564,000 00:12:36.240 --> 00:12:39.640 amended by amendments one through two 00:12:39.640 --> 00:12:42.720 approved by the city council said third amendment 00:12:42.720 --> 00:12:45.440 to continue to provide electrical substation design 00:12:45.440 --> 00:12:47.840 and other engineering related consulting services 00:12:47.840 --> 00:12:49.360 for the capital improvement projects 00:12:49.360 --> 00:12:52.280 and other technical support for the Denton 00:12:52.280 --> 00:12:55.520 municipal electric providing the expenditure funds therefore 00:12:55.520 --> 00:12:58.960 and providing an effective date file 5089 00:12:58.960 --> 00:13:01.640 providing for additional third amendment expenditure amount 00:13:01.640 --> 00:13:06.640 not to exceed 2,990,900 with the total contract amount 00:13:06.640 --> 00:13:11.520 not to exceed 6,556,300. 00:13:11.520 --> 00:13:16.440 And I think is it Jerry again, I believe him. 00:13:16.440 --> 00:13:17.880 - It is me again. 00:13:17.880 --> 00:13:21.200 And it looks like I'm having technical issues 00:13:21.200 --> 00:13:23.760 'cause when I pull the presentation up, it's empty. 00:13:23.760 --> 00:13:29.480 So if you guys would kind of bear with me as far as 00:13:29.480 --> 00:13:31.040 you should have gotten a copy of the PowerPoint 00:13:31.040 --> 00:13:34.160 in your package, if I could just go over the information 00:13:34.160 --> 00:13:36.720 with you, would that be sufficient? 00:13:36.720 --> 00:13:38.000 - It's fine with me. 00:13:38.000 --> 00:13:39.560 - All right. - Add it up. 00:13:39.560 --> 00:13:44.520 - So again, we're before you today to talk about 00:13:44.520 --> 00:13:48.480 a third amendment for the Black and Veatch Corporation 00:13:48.480 --> 00:13:50.360 engineering firm. 00:13:50.360 --> 00:13:54.800 This amendment is the amount of $2,990,000 00:13:54.800 --> 00:13:57.240 with a not to exceed for the total contract 00:13:57.240 --> 00:14:01.360 of $6,556,300. 00:14:01.360 --> 00:14:06.560 Going to the second PowerPoint slide 00:14:06.560 --> 00:14:08.200 that you should have been seeing. 00:14:08.200 --> 00:14:12.280 Professional services that they provide for DME right now 00:14:12.280 --> 00:14:16.400 include NERC, ERCOT and the Texas Reliability Entity 00:14:16.400 --> 00:14:21.400 Compliance Support, Relay Design and Setting Consultation. 00:14:21.400 --> 00:14:23.720 The next one for this will be the Brinker Substation 00:14:23.720 --> 00:14:27.640 which should be coming online in the next few months. 00:14:27.640 --> 00:14:31.240 New and Future Site Conceptual Design Analysis. 00:14:31.240 --> 00:14:34.040 This is related to the new Underwood Substation 00:14:34.040 --> 00:14:36.560 which is near the Coal Ranch, Under Ranch area 00:14:36.560 --> 00:14:39.080 and additional engineering and technical support. 00:14:41.840 --> 00:14:46.840 The next slide would be professional services continued 00:14:46.840 --> 00:14:53.800 for the Hickory Substation Owners Engineering Services. 00:14:53.800 --> 00:14:58.360 The Section 2269.305 of the Texas Government Code 00:14:58.360 --> 00:15:01.880 requires the City of Denton have an owner's engineer 00:15:01.880 --> 00:15:03.720 to serve as DME's representative 00:15:03.720 --> 00:15:06.360 for this substation construction. 00:15:06.360 --> 00:15:09.680 Black and Veatch will provide that service for us. 00:15:09.680 --> 00:15:12.280 The Hickory Substation, the GIS substation 00:15:12.280 --> 00:15:14.760 will be a design build project. 00:15:14.760 --> 00:15:18.360 So it'd be engineered and constructed under one contract. 00:15:18.360 --> 00:15:20.240 We believe that this will provide us 00:15:20.240 --> 00:15:22.080 with some price certainty 00:15:22.080 --> 00:15:24.640 and it provides less design risk. 00:15:24.640 --> 00:15:27.800 GIS is a new technology to DME. 00:15:27.800 --> 00:15:29.920 And so we're using some folks 00:15:29.920 --> 00:15:31.960 that have got a little bit more experience with GIS 00:15:31.960 --> 00:15:33.920 than what we do to help us through the process 00:15:33.920 --> 00:15:37.400 of getting this substation designed and built. 00:15:37.400 --> 00:15:40.160 And Black and Veatch, it's role during this time 00:15:40.160 --> 00:15:42.800 will prepare design criteria package, 00:15:42.800 --> 00:15:45.120 assist with the evaluation of bids, 00:15:45.120 --> 00:15:46.720 assist with the design reviews 00:15:46.720 --> 00:15:49.240 and provide engineering oversight of the project. 00:15:49.240 --> 00:15:55.400 The next slide will be a little bit of information 00:15:55.400 --> 00:15:56.480 about the costs associated, 00:15:56.480 --> 00:15:59.960 or the costs included with this presentation 00:15:59.960 --> 00:16:03.280 for the $2.9 million we're asking for. 00:16:03.280 --> 00:16:05.560 900, almost a million dollars of that 00:16:05.560 --> 00:16:08.320 is to perform the services as the owner engineer 00:16:08.320 --> 00:16:10.280 for Hickory GIS substation. 00:16:10.280 --> 00:16:14.560 Then we also have NERC, ERCOT, TRE compliant support, 00:16:14.560 --> 00:16:18.400 the relay design and setting consultation, substation site, 00:16:18.400 --> 00:16:23.400 conceptual design and analysis, 00:16:23.400 --> 00:16:26.160 future substation project designs 00:16:26.160 --> 00:16:28.120 and additional engineering and technical support, 00:16:28.120 --> 00:16:29.520 which are the items that we had talked about 00:16:29.520 --> 00:16:32.320 in previous presentations. 00:16:32.320 --> 00:16:34.760 All of these combined, their estimated costs 00:16:34.760 --> 00:16:38.920 combined to the $2.99 million that we're requesting. 00:16:38.920 --> 00:16:43.800 - Great. 00:16:43.800 --> 00:16:47.760 - And again, the recommendation is that staff recommends 00:16:47.760 --> 00:16:51.160 approval of the amendment to the existing 00:16:51.160 --> 00:16:53.200 Black and Veatch Corporation contract 00:16:53.200 --> 00:16:55.520 in the amount of $2.99 million 00:16:55.520 --> 00:16:59.520 with a total not to exceed of $6.556, $300. 00:16:59.520 --> 00:17:03.120 And again, as the other contract, 00:17:03.120 --> 00:17:04.720 this is being structured as an hourly, 00:17:04.720 --> 00:17:09.200 so that only charges for services rendered will be billed. 00:17:09.200 --> 00:17:13.640 Questions? 00:17:13.640 --> 00:17:14.920 - And just like the last one, 00:17:14.920 --> 00:17:16.840 this one will, the majority will be covered 00:17:16.840 --> 00:17:21.080 under our transmission rates, correct? 00:17:21.080 --> 00:17:22.240 - Yes. 00:17:22.240 --> 00:17:23.280 - I have a question. 00:17:23.280 --> 00:17:24.240 - Go ahead Ed. 00:17:24.240 --> 00:17:25.440 Sorry, I didn't see you there. 00:17:25.440 --> 00:17:26.280 - That's all right. 00:17:26.280 --> 00:17:28.160 This is a rather mundane question, 00:17:28.160 --> 00:17:32.360 but some people might be curious as I am. 00:17:32.360 --> 00:17:34.360 Lawyers bill by the hour. 00:17:34.360 --> 00:17:39.200 How does a consultancy or an engineering firm 00:17:39.200 --> 00:17:43.760 like this bill in terms of, what's their price structure? 00:17:43.760 --> 00:17:48.400 Is there an actual price structure that is given 00:17:48.400 --> 00:17:52.200 to the purchaser as to how much, what is going to cost, 00:17:52.200 --> 00:17:56.360 or is it, I don't understand the billing procedure. 00:17:56.360 --> 00:18:00.360 - Yeah, contracts like this, 00:18:01.320 --> 00:18:03.480 contracts like this are done under an RFQ, 00:18:03.480 --> 00:18:05.720 so it's a request for qualifications, 00:18:05.720 --> 00:18:07.600 which during the entire contract process, 00:18:07.600 --> 00:18:10.680 we can't really discuss price until we've met, 00:18:10.680 --> 00:18:14.000 we've decided on the firm that we feel is the best one 00:18:14.000 --> 00:18:16.960 for the services that we want. 00:18:16.960 --> 00:18:19.040 Now, typically what I've seen in the past 00:18:19.040 --> 00:18:21.920 is that they have a listing of all of the staff 00:18:21.920 --> 00:18:23.520 that they're gonna do, their titles, 00:18:23.520 --> 00:18:28.160 and an hourly rate for that person to do work with us. 00:18:28.160 --> 00:18:30.880 Then when we get billed, we actually see, 00:18:30.880 --> 00:18:34.080 there's a senior engineer, X number of hours, 00:18:34.080 --> 00:18:36.960 and X number of dollars per hour total cost. 00:18:36.960 --> 00:18:38.080 And we kind of look at that 00:18:38.080 --> 00:18:40.120 compared to what we think's reasonable. 00:18:40.120 --> 00:18:41.960 And if it is, then we say, okay, 00:18:41.960 --> 00:18:43.880 we go ahead and move to pay the bill. 00:18:43.880 --> 00:18:46.080 Otherwise we do call them back and say, hey, look, 00:18:46.080 --> 00:18:48.520 can you kind of explain to me what their role was, 00:18:48.520 --> 00:18:49.680 just to make sure that we know 00:18:49.680 --> 00:18:52.440 that the pricing and the cost is fair. 00:18:52.440 --> 00:18:54.720 - Great, thank you very much. 00:18:54.720 --> 00:18:57.040 - Other questions? 00:18:57.040 --> 00:18:58.840 - Yeah, I have a question. 00:18:58.840 --> 00:19:00.640 - Billy was up first. 00:19:00.640 --> 00:19:01.680 - Go ahead, Billy. 00:19:01.680 --> 00:19:06.120 - I have the same question that I did for the last item. 00:19:06.120 --> 00:19:09.200 And I would assume, Tony, 00:19:09.200 --> 00:19:11.800 is this gonna be in a later presentation? 00:19:11.800 --> 00:19:16.240 I prefer that that estimate be on the money 00:19:16.240 --> 00:19:18.840 that you're asking for, have that question answered 00:19:18.840 --> 00:19:21.080 when you're asking for the money. 00:19:21.080 --> 00:19:21.920 - We can do that. 00:19:21.920 --> 00:19:23.400 - We can certainly do that. 00:19:23.400 --> 00:19:25.600 - Okay, and just a comment. 00:19:25.600 --> 00:19:28.800 It is industry standard and for engineering 00:19:28.800 --> 00:19:31.160 to be billed by the hour 00:19:31.160 --> 00:19:33.240 and plus expenses like lawyers bill. 00:19:33.240 --> 00:19:37.720 - I think then it was Russ. 00:19:37.720 --> 00:19:41.640 - Yeah, Ed, to answer one of your comments, 00:19:41.640 --> 00:19:43.880 I went through the calculation. 00:19:43.880 --> 00:19:47.720 If you look at the total cost divided by the number of hours, 00:19:47.720 --> 00:19:52.320 you get around $155 an hour for an average rate 00:19:52.320 --> 00:19:53.920 for what they're asking for. 00:19:53.920 --> 00:19:54.800 - Okay. 00:19:54.800 --> 00:19:59.040 - If you compare that number with your favorite local lawyers 00:19:59.040 --> 00:20:03.160 hourly rate, lawyers are probably gonna be 00:20:03.160 --> 00:20:04.360 a lot more than that. 00:20:04.360 --> 00:20:07.560 So one other question I had, Jerry, 00:20:07.560 --> 00:20:10.560 will Black & Beech be bidding 00:20:10.560 --> 00:20:15.560 on the actual design bid part of this or not? 00:20:15.560 --> 00:20:17.400 - No, as the owner's engineer, 00:20:17.400 --> 00:20:20.520 they can't also bid on the project. 00:20:20.520 --> 00:20:21.360 - Okay. 00:20:23.080 --> 00:20:25.760 Okay, Charlie, did you have a question? 00:20:25.760 --> 00:20:26.600 - Real quick one. 00:20:26.600 --> 00:20:27.760 Can you tell me one more time 00:20:27.760 --> 00:20:30.800 what gas insulations benefits are relative 00:20:30.800 --> 00:20:32.960 to what the city's been using in the past? 00:20:32.960 --> 00:20:36.320 - What we're used to in the past 00:20:36.320 --> 00:20:39.400 is what you see most time is air insulated substations. 00:20:39.400 --> 00:20:41.080 Gas insulated substations, 00:20:41.080 --> 00:20:43.680 the main advantage is their footprint. 00:20:43.680 --> 00:20:44.640 They're a lot smaller. 00:20:44.640 --> 00:20:46.200 They take up a lot less land 00:20:46.200 --> 00:20:50.040 than what an air insulated substation requires. 00:20:50.040 --> 00:20:52.520 So that's a major benefit to a lot of folks. 00:20:52.520 --> 00:20:53.760 If you have a limited area 00:20:53.760 --> 00:20:55.680 that you wanna put a substation in, 00:20:55.680 --> 00:20:58.960 then GIS substations are typically a good route for you. 00:20:58.960 --> 00:21:02.200 - So what we're trying to do is optimize the cost. 00:21:02.200 --> 00:21:06.800 We're not meeting someone else's requirement 00:21:06.800 --> 00:21:08.040 that came from somewhere else. 00:21:08.040 --> 00:21:10.880 We're just trying to, land has gotten more expensive 00:21:10.880 --> 00:21:13.280 and gas insulation might be cheaper. 00:21:13.280 --> 00:21:17.040 - I'm not gonna say it's gonna be cheaper, 00:21:17.040 --> 00:21:19.760 but it certainly allows us to use the land 00:21:19.760 --> 00:21:21.280 that we've got provided, 00:21:21.280 --> 00:21:23.360 to be able to put in the capacity, 00:21:23.360 --> 00:21:28.680 current and future capacity of the substation that we need. 00:21:28.680 --> 00:21:29.520 - Great, thanks. 00:21:29.520 --> 00:21:30.360 I meant overall cheaper. 00:21:30.360 --> 00:21:32.600 The land savings outweighs the extra cost 00:21:32.600 --> 00:21:33.880 for the gas insulation. 00:21:33.880 --> 00:21:36.640 - Not necessarily. 00:21:36.640 --> 00:21:37.480 - No. 00:21:37.480 --> 00:21:38.640 - Oh, okay. 00:21:38.640 --> 00:21:41.080 - Yeah, Charlie, this is Tony. 00:21:41.080 --> 00:21:44.400 So there was two substations 00:21:44.400 --> 00:21:46.680 that were being proposed by DMV a couple of years ago. 00:21:46.680 --> 00:21:48.600 One was Eagle, one was Hickory. 00:21:48.600 --> 00:21:50.120 Council had a lot of conversations 00:21:50.120 --> 00:21:52.160 about where the substations were gonna be 00:21:52.160 --> 00:21:54.960 in that area of town. 00:21:54.960 --> 00:21:58.080 And direction the council gave us was to go forward 00:21:58.080 --> 00:22:00.720 with a gas insulated substation. 00:22:00.720 --> 00:22:01.920 And so as you know, 00:22:01.920 --> 00:22:04.440 we've proposed to the POB and the council 00:22:04.440 --> 00:22:05.960 not to do the Eagle substation, 00:22:05.960 --> 00:22:09.680 but we're still pressing forward with the Hickory substation. 00:22:09.680 --> 00:22:11.720 And based on council's direction, 00:22:11.720 --> 00:22:14.160 'cause the considerations with the neighborhood, 00:22:14.160 --> 00:22:15.240 discussions with the neighborhood, 00:22:15.240 --> 00:22:18.520 we're gonna proceed with a gas insulated station 00:22:18.520 --> 00:22:20.720 there on Hickory. 00:22:20.720 --> 00:22:23.400 So it was really a council and frankly, 00:22:23.400 --> 00:22:26.600 POB decision to push forward with that type of substation. 00:22:26.600 --> 00:22:29.320 - Thank you. 00:22:29.320 --> 00:22:31.160 - Charlie, it may be cheaper politically, 00:22:31.160 --> 00:22:32.800 I think is the answer. 00:22:32.800 --> 00:22:33.640 - I understand. 00:22:33.640 --> 00:22:37.480 - Any other questions? 00:22:37.480 --> 00:22:40.880 All right, do we have a motion to approve? 00:22:40.880 --> 00:22:43.480 - Move approval. 00:22:43.480 --> 00:22:46.320 - Okay, Barbara's moved approval. 00:22:46.320 --> 00:22:47.880 She's stuck right now. 00:22:47.880 --> 00:22:49.000 Do we have a second? 00:22:49.000 --> 00:22:50.520 - I'll second. 00:22:50.520 --> 00:22:51.600 - We're all stuck. 00:22:51.600 --> 00:22:53.960 - Not on mine. 00:22:53.960 --> 00:22:56.720 - Not on mine. 00:22:56.720 --> 00:22:58.200 - Okay. 00:22:58.200 --> 00:22:59.560 - All right, one of you second. 00:22:59.560 --> 00:23:00.400 - Hello. 00:23:00.400 --> 00:23:03.080 - Susan, we can hear you, Susan. 00:23:03.080 --> 00:23:07.880 - No, she's frozen now. 00:23:07.880 --> 00:23:13.120 - Can we take this or you wanna wait on Susan? 00:23:13.120 --> 00:23:16.880 - Assuming she wants votes, I'll vote aye. 00:23:18.160 --> 00:23:19.000 - Yeah. 00:23:19.000 --> 00:23:21.160 - I'll second. 00:23:21.160 --> 00:23:22.000 - I'm looking at Larry. 00:23:22.000 --> 00:23:24.800 Larry, is it okay if we have someone else take over? 00:23:24.800 --> 00:23:26.840 - Yeah, Billy can go ahead and call the vote. 00:23:26.840 --> 00:23:27.680 - Okay. 00:23:27.680 --> 00:23:29.400 - We have a motion. 00:23:29.400 --> 00:23:31.360 Can we have a second? 00:23:31.360 --> 00:23:32.680 - I second. 00:23:32.680 --> 00:23:33.840 - Second from Russ. 00:23:33.840 --> 00:23:36.360 All those in favor, please say aye. 00:23:36.360 --> 00:23:37.200 - Aye. 00:23:37.200 --> 00:23:38.400 - Aye. 00:23:38.400 --> 00:23:39.480 - Opposed? 00:23:39.480 --> 00:23:41.640 Motion passes. 00:23:41.640 --> 00:23:46.480 Let's note that Susan is knocked off here. 00:23:46.480 --> 00:23:49.200 So I'm a vice chair, I'll take that. 00:23:49.200 --> 00:23:50.200 Let me get her back. 00:23:50.200 --> 00:23:56.560 - So Billy, that was a six OVO with Susan being absent. 00:23:56.560 --> 00:23:57.760 - That's correct. 00:23:57.760 --> 00:23:58.600 - Okay. 00:23:58.600 --> 00:24:02.000 - Okay, we're moving on to, 00:24:02.000 --> 00:24:05.160 that gets us to the management reports, doesn't it? 00:24:05.160 --> 00:24:06.000 - It does. 00:24:06.000 --> 00:24:07.400 So on the management reports, 00:24:07.400 --> 00:24:09.720 we have a couple of items here for you. 00:24:09.720 --> 00:24:12.160 So the first item that we had was just a follow-up memo 00:24:12.160 --> 00:24:15.600 on the root cause analysis for Hickory Creek. 00:24:15.600 --> 00:24:19.520 And we do have Kenny Banks and Frank Pugsley on here. 00:24:19.520 --> 00:24:22.600 I did just wanna briefly just thank Frank 00:24:22.600 --> 00:24:25.560 for his two years of service to the cities. 00:24:25.560 --> 00:24:29.320 I communicate to you, Frank is departing the city. 00:24:29.320 --> 00:24:32.160 His final day will be October 5th. 00:24:32.160 --> 00:24:34.840 And I have asked Terry Nolte to step in 00:24:34.840 --> 00:24:38.920 as the interim director while we do an executive search 00:24:38.920 --> 00:24:42.640 for Frank and he'll be working with Kenny Banks 00:24:42.640 --> 00:24:46.480 and also Preenam-Detchmouth to continue to run 00:24:46.480 --> 00:24:47.800 those two utilities. 00:24:47.800 --> 00:24:50.720 But happy to answer any questions if anyone has any 00:24:50.720 --> 00:24:53.720 on that Hickory Creek root cause analysis follow-up memo. 00:24:53.720 --> 00:24:58.360 - Yes, I have a few questions, comments on that. 00:24:58.360 --> 00:25:00.640 - Sir. 00:25:00.640 --> 00:25:05.720 - First of all, thanks very much for doing that. 00:25:05.720 --> 00:25:11.080 And it's a important step forward, I think, 00:25:11.080 --> 00:25:15.920 for city of Denton utilities to get some process nailed down 00:25:15.920 --> 00:25:19.160 to evaluate this stuff in the future. 00:25:19.160 --> 00:25:22.160 One suggestion I have on the template 00:25:22.160 --> 00:25:26.320 is if you could add something somewhere near the end, 00:25:26.320 --> 00:25:27.920 asking the question, 00:25:27.920 --> 00:25:34.600 should any operating practices or procedures be revised 00:25:34.600 --> 00:25:36.680 as a result of the incident? 00:25:36.680 --> 00:25:39.160 And if the answer to that is yes, 00:25:39.160 --> 00:25:43.280 then those revisions need to be written down, 00:25:43.280 --> 00:25:44.520 discussed a little bit. 00:25:44.520 --> 00:25:48.200 Can you comment on that? 00:25:48.200 --> 00:25:51.440 - Sure, Mr. Baffert, this is Frank Pugsley, 00:25:51.440 --> 00:25:53.920 water and wastewater utilities director. 00:25:53.920 --> 00:25:56.520 And yes, in the template, 00:25:56.520 --> 00:25:59.600 we do have the section for potential problem 00:25:59.600 --> 00:26:03.080 and opportunity analysis where we specifically want 00:26:03.080 --> 00:26:06.920 to look at the issues that we faced 00:26:06.920 --> 00:26:09.480 and opportunities to prevent them in the future 00:26:09.480 --> 00:26:13.600 and to consider better or different maintenance logs 00:26:13.600 --> 00:26:16.440 and newer updated standard operating procedures 00:26:16.440 --> 00:26:19.080 or training for staff to help prevent those 00:26:19.080 --> 00:26:20.720 in the future for sure. 00:26:20.720 --> 00:26:23.800 And we also, what we didn't complete in this report 00:26:23.800 --> 00:26:24.800 that was sent to you this time 00:26:24.800 --> 00:26:28.280 because of the time that had elapsed since the event 00:26:28.280 --> 00:26:30.760 would be really an after action review 00:26:30.760 --> 00:26:34.920 for getting with staff to see what went right 00:26:34.920 --> 00:26:37.320 during the event and what didn't quite go 00:26:37.320 --> 00:26:40.960 as well as planned so we can be better the next time. 00:26:40.960 --> 00:26:42.880 - Yeah, yeah, that's all true. 00:26:42.880 --> 00:26:47.000 I would just suggest Frank that the actual template 00:26:47.000 --> 00:26:52.000 be explicitly to include the question 00:26:52.000 --> 00:26:58.320 which would be answered in every event that you analyze. 00:26:58.320 --> 00:27:02.680 Does do any operating practices need to be revised? 00:27:02.680 --> 00:27:05.160 Yes or no, and then if yes, explain though. 00:27:05.160 --> 00:27:06.520 That's all I was getting at there. 00:27:06.520 --> 00:27:07.960 - Okay, understood. 00:27:07.960 --> 00:27:11.040 Yeah, we can add that if explicitly in there. 00:27:11.040 --> 00:27:13.720 - And as I was reading this event, 00:27:13.720 --> 00:27:16.760 it looked to me like it'd also be beneficial 00:27:16.760 --> 00:27:21.040 if you could include some kind of a small drawing 00:27:21.040 --> 00:27:25.440 of the piping system showing the components 00:27:25.440 --> 00:27:29.320 as they were configured and which ones failed. 00:27:29.320 --> 00:27:31.680 Something that matches what you're describing 00:27:31.680 --> 00:27:33.240 in words in the narrative. 00:27:33.240 --> 00:27:37.360 - Sure, that's a good suggestion. 00:27:37.360 --> 00:27:41.320 I think we can pick up especially like the as-built drawings 00:27:41.320 --> 00:27:44.440 and mark those up and include them as an attachment. 00:27:44.440 --> 00:27:49.200 - Yeah, another thing, the thing that actually started this, 00:27:49.200 --> 00:27:52.160 if I read your description correctly, 00:27:52.160 --> 00:27:57.160 is an electrical anomaly that resulted in the VFD going down. 00:27:59.320 --> 00:28:02.600 And I think that electrical anomaly 00:28:02.600 --> 00:28:07.600 and what took down the VFD really deserves more detail 00:28:07.600 --> 00:28:10.560 than what we had there. 00:28:10.560 --> 00:28:15.280 Maybe you can't reconstruct that now, but in the future. 00:28:15.280 --> 00:28:17.720 - Yes, absolutely. 00:28:17.720 --> 00:28:21.640 And we did at the time attempt to kind of reconstruct that. 00:28:21.640 --> 00:28:23.840 We spoke with DME to see if they had experienced 00:28:23.840 --> 00:28:27.840 or seen anything in their SCADA at the nearby substations. 00:28:27.840 --> 00:28:30.720 And honestly, between the two utilities, 00:28:30.720 --> 00:28:33.440 we weren't able to actually identify anything, 00:28:33.440 --> 00:28:36.840 but the VFD for some reason did trip out 00:28:36.840 --> 00:28:40.560 for just a split second in causing this issue. 00:28:40.560 --> 00:28:42.800 And it could be just that the VFD is aging. 00:28:42.800 --> 00:28:44.400 It is in a harsh environment 00:28:44.400 --> 00:28:46.600 and it'll be replaced very soon. 00:28:46.600 --> 00:28:50.840 - Okay, and one final question. 00:28:50.840 --> 00:28:54.360 What new features in the new lift station 00:28:54.360 --> 00:28:57.280 are going to be installed so that something like this 00:28:57.280 --> 00:29:00.360 is less likely to happen in the future? 00:29:00.360 --> 00:29:03.560 - Sure, the existing lift station 00:29:03.560 --> 00:29:06.680 has that wet pit, dry pit configuration. 00:29:06.680 --> 00:29:10.600 It really doesn't have adequate isolation capabilities. 00:29:10.600 --> 00:29:13.280 So if something did go wrong in the dry pit, 00:29:13.280 --> 00:29:16.680 as far as mechanical piping, we don't have a way to isolate. 00:29:16.680 --> 00:29:21.720 The new lift station is a wet well with submersible pumps. 00:29:21.720 --> 00:29:25.400 And so the discharge piping is much less complicated 00:29:25.400 --> 00:29:29.040 and any kind of failure in the piping 00:29:29.040 --> 00:29:31.120 would not affect all three pumps. 00:29:31.120 --> 00:29:34.240 It will only affect the one pump that had an issue 00:29:34.240 --> 00:29:36.280 and we can isolate that much more easily. 00:29:36.280 --> 00:29:38.520 And the new lift station 00:29:38.520 --> 00:29:41.920 also will have integrated bypass connections 00:29:41.920 --> 00:29:45.680 so that we can connect temporary bypass pumps 00:29:45.680 --> 00:29:49.360 relatively quickly and not have to lay a quarter mile 00:29:49.360 --> 00:29:53.160 of hose to our neighbors lift station in the future. 00:29:54.240 --> 00:29:56.040 - Yeah, well, that's good. 00:29:56.040 --> 00:29:58.960 It might be worthwhile to include what you just said 00:29:58.960 --> 00:30:02.560 in some summarized form in with your report 00:30:02.560 --> 00:30:05.000 that you already wrote about this incident 00:30:05.000 --> 00:30:08.320 to let everyone know that things are gonna be 00:30:08.320 --> 00:30:11.480 configured differently in the new arrangement. 00:30:11.480 --> 00:30:14.800 - Understood, yes, sir. 00:30:14.800 --> 00:30:16.880 - That's all I have. 00:30:16.880 --> 00:30:17.720 Good job. 00:30:17.720 --> 00:30:23.680 - Okay, if there's no other questions on that, 00:30:23.680 --> 00:30:27.240 the next item is a memorandum from Becky Davidian. 00:30:27.240 --> 00:30:31.680 She's on the phone as well regarding the use of a 5% 00:30:31.680 --> 00:30:36.080 contingency on certain capital improvement projects. 00:30:36.080 --> 00:30:39.320 This is just really to provide a clarification 00:30:39.320 --> 00:30:40.280 on how that's gonna come. 00:30:40.280 --> 00:30:44.760 It's probably gonna impact bids and RPs that come to you, 00:30:44.760 --> 00:30:47.160 but certainly happy to answer any questions, 00:30:47.160 --> 00:30:48.840 have Becky answer any questions 00:30:48.840 --> 00:30:51.200 that anyone may have on that memo. 00:30:54.680 --> 00:30:55.640 Any questions? 00:30:55.640 --> 00:30:57.920 I'm back, by the way. 00:30:57.920 --> 00:31:02.160 Don't know what happened. 00:31:02.160 --> 00:31:05.600 All right. 00:31:05.600 --> 00:31:09.000 - I guess, I just, sorry to be so last minute, 00:31:09.000 --> 00:31:10.920 but I'm just trying to remember, 00:31:10.920 --> 00:31:14.120 I think we've always used a 5% contingency, haven't we, 00:31:14.120 --> 00:31:18.800 or I'm just not remembering exactly how this, 00:31:18.800 --> 00:31:22.440 it seems like we've been seeing this forever. 00:31:22.440 --> 00:31:24.960 This is just an explanation of something 00:31:24.960 --> 00:31:26.560 that we've already been doing. 00:31:26.560 --> 00:31:28.000 - I think we've lowered it, didn't we, 00:31:28.000 --> 00:31:31.160 from 10% to 5% in recent years? 00:31:31.160 --> 00:31:32.440 - I believe that's accurate. 00:31:32.440 --> 00:31:36.520 And again, I think the attempt here is to cut down 00:31:36.520 --> 00:31:40.480 as much as possible on future change orders that may occur, 00:31:40.480 --> 00:31:43.160 that may require action. 00:31:43.160 --> 00:31:45.280 And so that's really kind of the attempt, 00:31:45.280 --> 00:31:47.280 but really you just wanna be transparent 00:31:47.280 --> 00:31:50.880 and make sure that we're clear on what we're gonna be doing 00:31:50.880 --> 00:31:53.040 going forward with these bids. 00:31:53.040 --> 00:31:56.840 - Yeah, thanks, I was just too lazy to do the research. 00:31:56.840 --> 00:31:57.680 - Okay. 00:31:57.680 --> 00:32:02.680 All right, so the next item that's on here 00:32:02.680 --> 00:32:05.480 is your feature agenda items. 00:32:05.480 --> 00:32:08.000 We only have one, and I know we've had a couple of questions 00:32:08.000 --> 00:32:10.480 about the solid waste management strategy, 00:32:10.480 --> 00:32:12.440 but we wanna let you know that that is coming, 00:32:12.440 --> 00:32:15.920 will be coming to you on October 12th. 00:32:15.920 --> 00:32:20.840 And then on the last item is just also kind of new business, 00:32:20.840 --> 00:32:22.640 the one item that we had left over 00:32:22.640 --> 00:32:26.960 was the update on the lawsuit that you requested. 00:32:26.960 --> 00:32:28.520 Council's provided some direction 00:32:28.520 --> 00:32:30.840 and legal will be briefing you later today 00:32:30.840 --> 00:32:32.880 in your agenda on the direction 00:32:32.880 --> 00:32:34.640 that we got from council on that. 00:32:34.640 --> 00:32:40.080 So with that, that concludes the management reports 00:32:40.080 --> 00:32:41.480 unless there's something else, 00:32:41.480 --> 00:32:43.240 some of the questions that you have. 00:32:43.240 --> 00:32:47.640 - Doesn't look like it. 00:32:47.640 --> 00:32:49.640 And then we're on to concluding items. 00:32:49.640 --> 00:32:52.720 This is the point where you can congratulate Frank, 00:32:52.720 --> 00:32:56.200 wish him well, beg him to stay, all of the above. 00:32:56.200 --> 00:32:58.160 (laughing) 00:32:58.160 --> 00:33:02.160 I do anyway, Frank, wish you the best in the future. 00:33:02.160 --> 00:33:03.440 Congratulations. 00:33:03.440 --> 00:33:05.840 - Yes, wish you the best, Frank. 00:33:05.840 --> 00:33:06.680 Good luck. 00:33:06.680 --> 00:33:08.840 - Yeah, thank you all very much. 00:33:08.840 --> 00:33:10.360 It's been a pleasure working with you 00:33:10.360 --> 00:33:12.360 over the last few years, appreciate it. 00:33:12.360 --> 00:33:14.880 - Best wishes to you, Frank. 00:33:16.840 --> 00:33:19.640 - Does any board member wish to have item added 00:33:19.640 --> 00:33:21.000 to a future agenda? 00:33:21.000 --> 00:33:27.120 I do have one item that, oh, go ahead. 00:33:27.120 --> 00:33:28.800 You go ahead, Ed, you go first. 00:33:28.800 --> 00:33:32.960 - Is this the only place in the meeting, 00:33:32.960 --> 00:33:35.240 this is a question of point of order, 00:33:35.240 --> 00:33:37.000 is this the only place in the meeting 00:33:37.000 --> 00:33:39.240 where such a request can be made 00:33:39.240 --> 00:33:43.120 or can it be made after a presentation too? 00:33:43.120 --> 00:33:46.120 - Larry, could you answer that? 00:33:47.840 --> 00:33:51.280 - This would be the proper way to do it during this time 00:33:51.280 --> 00:33:53.760 as opposed to kind of going outside posting 00:33:53.760 --> 00:33:55.240 on another item. 00:33:55.240 --> 00:33:57.040 - Okay, then I have something. 00:33:57.040 --> 00:33:57.880 - Go ahead. 00:33:57.880 --> 00:34:03.160 - It's in relation to what is coming up in a little bit 00:34:03.160 --> 00:34:05.640 on the landfill gas management. 00:34:05.640 --> 00:34:10.120 I would like any information and/or discussion 00:34:10.120 --> 00:34:15.760 on the possibility of a pilot 00:34:16.680 --> 00:34:18.920 residential composting program, 00:34:18.920 --> 00:34:25.760 such as was done when recycling came in. 00:34:25.760 --> 00:34:29.040 I was on a committee, this was back in the '90s, 00:34:29.040 --> 00:34:33.040 on a community committee to establish 00:34:33.040 --> 00:34:34.760 a pilot recycling program, 00:34:34.760 --> 00:34:37.400 which is the program that is now in place. 00:34:37.400 --> 00:34:39.720 And I'd like to see the same process started 00:34:39.720 --> 00:34:45.000 for residential composting, 00:34:45.000 --> 00:34:46.960 a food waste especially. 00:34:46.960 --> 00:34:49.080 There are already programs like this in existence. 00:34:49.080 --> 00:34:51.320 Austin has a very good program. 00:34:51.320 --> 00:34:53.760 So I think it's time that we need to look at that. 00:34:53.760 --> 00:34:54.680 Thank you. 00:34:54.680 --> 00:34:58.800 - So Ed, how long has Austin been doing theirs? 00:34:58.800 --> 00:34:59.640 Do you know? 00:34:59.640 --> 00:35:04.520 - I think 2011. 00:35:04.520 --> 00:35:07.320 - Oh, okay. 00:35:07.320 --> 00:35:10.880 - And they have an incentive program too. 00:35:13.240 --> 00:35:17.680 - I can send you the information if you would like. 00:35:17.680 --> 00:35:21.000 - My daughter, she's been living in Austin. 00:35:21.000 --> 00:35:25.280 She just moved out, but she just got her bin 00:35:25.280 --> 00:35:26.960 for the composting. 00:35:26.960 --> 00:35:30.680 And she had her own robust composting. 00:35:30.680 --> 00:35:35.680 So I thought that it was a relatively new program in Austin. 00:35:35.680 --> 00:35:40.000 - Well, it was part of the 2011 plan. 00:35:40.000 --> 00:35:43.600 So I might be making the wrong assumption 00:35:43.600 --> 00:35:45.560 that it started in 2011. 00:35:45.560 --> 00:35:50.800 - So it's not just residential yard waste composting, 00:35:50.800 --> 00:35:52.480 you're food composting. 00:35:52.480 --> 00:35:53.320 - Yeah. 00:35:53.320 --> 00:35:54.760 - All right. 00:35:54.760 --> 00:35:56.360 - They have something like five bins. 00:35:56.360 --> 00:36:00.080 I mean, the color coding is very complex. 00:36:00.080 --> 00:36:01.440 - No one fit in my garage. 00:36:01.440 --> 00:36:06.760 - Thank you. 00:36:06.760 --> 00:36:07.840 - Billy. 00:36:07.840 --> 00:36:09.680 - I guess I better add beneficial. 00:36:09.680 --> 00:36:11.680 I wouldn't, my request earlier 00:36:11.680 --> 00:36:15.000 was on those two large engineering increases. 00:36:15.000 --> 00:36:18.680 And I would be interested in seeing the percentage. 00:36:18.680 --> 00:36:22.520 The cost of engineering as a percentage 00:36:22.520 --> 00:36:25.200 of the construction costs for the entire project. 00:36:25.200 --> 00:36:29.040 Going forward, it's difficult to approve the engineering 00:36:29.040 --> 00:36:31.720 if we don't know how it's applied 00:36:31.720 --> 00:36:35.560 to the entire cost of the project. 00:36:35.560 --> 00:36:39.200 I think you got that earlier. 00:36:39.200 --> 00:36:40.280 All right, Tony. 00:36:40.280 --> 00:36:41.120 - Yes, sir. 00:36:41.120 --> 00:36:42.480 - Okay, all right, thank you. 00:36:42.480 --> 00:36:47.360 - And I'd like the water staff 00:36:47.360 --> 00:36:50.640 to keep on top of what happened down in Houston 00:36:50.640 --> 00:36:52.400 with the, I'm gonna say it wrong, 00:36:52.400 --> 00:36:56.480 amoeba getting into the public water system. 00:36:56.480 --> 00:37:00.960 And how that, you know, just keep on top of that story. 00:37:00.960 --> 00:37:04.520 It's very sad a child lost his life 00:37:04.520 --> 00:37:05.720 over something like that. 00:37:05.720 --> 00:37:08.200 Anything else? 00:37:09.760 --> 00:37:11.640 - All right, then we'll move into work session. 00:37:11.640 --> 00:37:14.280 The first item A is receive a report, 00:37:14.280 --> 00:37:16.960 hold a discussion and give staff direction 00:37:16.960 --> 00:37:19.440 regarding options related to the management 00:37:19.440 --> 00:37:22.520 of landfill gas generated at the City of Denton landfill. 00:37:22.520 --> 00:37:34.040 - Good morning, Madam Chair, members of the committee. 00:37:34.040 --> 00:37:35.000 My name is Brian Burner, 00:37:35.000 --> 00:37:37.560 Director of Solid Waste for the City of Denton. 00:37:37.560 --> 00:37:39.000 I appreciate the opportunity this morning 00:37:39.000 --> 00:37:41.000 to talk a little bit about landfill gas 00:37:41.000 --> 00:37:43.600 and what we're doing currently to manage it 00:37:43.600 --> 00:37:45.520 and what our proposal is for the future 00:37:45.520 --> 00:37:47.320 at the City of Denton. 00:37:47.320 --> 00:37:49.760 I really wanna talk about what landfill gas is, 00:37:49.760 --> 00:37:51.800 talk about the regulatory environment 00:37:51.800 --> 00:37:53.440 that we operate within, 00:37:53.440 --> 00:37:56.240 really talk about the current management activities 00:37:56.240 --> 00:37:59.840 and then what our options are as we move forward. 00:37:59.840 --> 00:38:02.280 You may, let's see, before we get started, 00:38:02.280 --> 00:38:04.200 what we do wanna do is to go through 00:38:04.200 --> 00:38:05.960 just a real quick primer on some words 00:38:05.960 --> 00:38:06.800 we're gonna be using today, 00:38:06.800 --> 00:38:11.640 make sure everybody's on the same conversational basis. 00:38:11.640 --> 00:38:15.200 First of all, landfill gas, it's produced in the landfill 00:38:15.200 --> 00:38:18.120 and it's a byproduct of the natural decomposition 00:38:18.120 --> 00:38:19.800 of the organic materials. 00:38:19.800 --> 00:38:22.560 So the compressibles, the wood waste, 00:38:22.560 --> 00:38:24.000 construction demolition debris 00:38:24.000 --> 00:38:26.240 that may be able to degrade, 00:38:26.240 --> 00:38:29.080 that material is what manages 00:38:29.080 --> 00:38:31.480 or what makes the landfill gas. 00:38:31.480 --> 00:38:33.480 It takes anywhere from about one to three years 00:38:33.480 --> 00:38:35.320 to start producing the gas 00:38:35.320 --> 00:38:37.560 and then about five to seven years before we see, 00:38:37.560 --> 00:38:39.840 we see maximum production 00:38:39.840 --> 00:38:41.720 as a result of the material that was put in. 00:38:41.720 --> 00:38:43.280 So it's about a seven year process 00:38:43.280 --> 00:38:47.000 to actually see the gas formed 00:38:47.000 --> 00:38:49.880 on what may be put in the landfill today. 00:38:49.880 --> 00:38:51.720 We talk about renewable natural gas. 00:38:51.720 --> 00:38:54.960 What we're talking about is actually that natural gas 00:38:54.960 --> 00:38:57.320 that's derived from the organic material. 00:38:57.320 --> 00:39:00.400 So that, beneficially reusing that material 00:39:00.400 --> 00:39:01.320 as we move forward. 00:39:01.320 --> 00:39:03.680 As a reminder, this is not a fossil fuel, 00:39:03.680 --> 00:39:05.080 even though it is methane, 00:39:05.080 --> 00:39:07.960 it does not come from a fossil fuel source. 00:39:07.960 --> 00:39:12.400 So it is considered renewable, a renewable material. 00:39:12.400 --> 00:39:15.000 We talked a little bit about non. 00:39:15.000 --> 00:39:15.840 - Can I ask a question? 00:39:15.840 --> 00:39:18.880 I need some clarification on this. 00:39:18.880 --> 00:39:20.640 May I, is it okay now? 00:39:20.640 --> 00:39:23.200 - Yes, and if you can just give us a second 00:39:23.200 --> 00:39:25.560 so we can take down the presentation 00:39:25.560 --> 00:39:28.200 and then you can ask the question. 00:39:28.200 --> 00:39:33.640 - Yes, sir. 00:39:33.640 --> 00:39:35.800 - Okay, thank you. 00:39:35.800 --> 00:39:38.840 I'm just curious, you did not mention food waste 00:39:38.840 --> 00:39:43.840 as one of the producers of methane gas. 00:39:43.840 --> 00:39:46.520 And am I making a wrong assumption 00:39:46.520 --> 00:39:48.720 that food waste is not involved in this? 00:39:48.720 --> 00:39:50.160 - No, food waste is involved in this 00:39:50.160 --> 00:39:52.240 but it's part of that pretrustful organic material 00:39:52.240 --> 00:39:56.280 that can be converted into renewable landfill gas. 00:39:56.280 --> 00:40:01.280 - Okay, and is this so-called renewable natural gas, 00:40:02.520 --> 00:40:04.120 it is methane, correct? 00:40:04.120 --> 00:40:06.000 - It is methane, correct. 00:40:06.000 --> 00:40:10.320 - And does it have the same climate change capacity 00:40:10.320 --> 00:40:15.320 as effect on the climate as fossil fuel methane? 00:40:15.320 --> 00:40:18.520 - If it is released directly into the land 00:40:18.520 --> 00:40:19.960 or into the atmosphere, yes. 00:40:19.960 --> 00:40:21.840 But again, based on our requirements 00:40:21.840 --> 00:40:23.160 and our control measures, 00:40:23.160 --> 00:40:25.560 it is destructed before we get to that point, 00:40:25.560 --> 00:40:26.400 either through the flare or through- 00:40:26.400 --> 00:40:28.480 - Okay, I'm just gonna make the point 00:40:28.480 --> 00:40:30.640 that methane is methane. 00:40:30.640 --> 00:40:35.640 And giving this euphemistic term of renewable natural gas 00:40:35.640 --> 00:40:37.920 is really a misnomer. 00:40:37.920 --> 00:40:40.280 We need to call it what it is. 00:40:40.280 --> 00:40:44.760 - Again, this is the EPA's verbiage for this material 00:40:44.760 --> 00:40:45.600 and that's what I care for. 00:40:45.600 --> 00:40:48.800 - I understand that, but you understand 00:40:48.800 --> 00:40:51.640 the political implications of putting the word renewable 00:40:51.640 --> 00:40:54.320 in front of what is basically a fossil fuel. 00:40:54.320 --> 00:40:57.320 Because it has the same impact on climate 00:40:57.320 --> 00:41:02.320 as the methane that comes out with drilling and fracking. 00:41:02.320 --> 00:41:04.440 I mean, it's that simple. 00:41:04.440 --> 00:41:06.280 So I just wanted to make that clarification 00:41:06.280 --> 00:41:09.040 because in doing some research, 00:41:09.040 --> 00:41:11.280 just as a matter of fact, 00:41:11.280 --> 00:41:16.040 the gas industry is very much promoting this idea 00:41:16.040 --> 00:41:21.320 simply because of the current business profile 00:41:21.320 --> 00:41:22.800 of the natural gas industry. 00:41:22.800 --> 00:41:24.280 It's not in good shape. 00:41:24.280 --> 00:41:27.680 And this is another way of trying to prop up the industry. 00:41:27.680 --> 00:41:29.240 And I don't say that. 00:41:29.240 --> 00:41:30.920 I mean, that's a fact. 00:41:30.920 --> 00:41:32.880 That's what I found in my research. 00:41:32.880 --> 00:41:34.560 So I just don't want people to think 00:41:34.560 --> 00:41:38.360 that because this is called renewable natural gas, 00:41:38.360 --> 00:41:41.320 that it's pure and safe. 00:41:41.320 --> 00:41:44.000 And you know what I mean. 00:41:44.000 --> 00:41:45.400 People can get the wrong impression 00:41:45.400 --> 00:41:48.560 just by the addition of that word renewable. 00:41:48.560 --> 00:41:49.520 Thank you. 00:41:49.520 --> 00:41:50.360 - Thank you. 00:41:50.360 --> 00:41:53.720 All right, to continue. 00:41:53.720 --> 00:41:54.560 - Proceed. 00:41:54.560 --> 00:42:05.080 - We were talking a little bit 00:42:05.080 --> 00:42:07.760 about non-methane volatile organic chemicals. 00:42:07.760 --> 00:42:10.600 So this is the variety of chemicals that are different, 00:42:10.600 --> 00:42:13.360 you know, that basically are different organic compounds 00:42:13.360 --> 00:42:14.280 other than methane. 00:42:14.280 --> 00:42:18.040 So as methane is destroyed by either our flare or engine 00:42:18.040 --> 00:42:20.760 or some other source, the emission profile, 00:42:20.760 --> 00:42:23.240 we talk about the other organic compounds 00:42:23.240 --> 00:42:26.480 that may be produced as a result of that destruction. 00:42:26.480 --> 00:42:29.760 We'll also be talking a little bit about RENS and RECs. 00:42:29.760 --> 00:42:31.480 I know that we've talked a lot about RECs 00:42:31.480 --> 00:42:34.960 as we're talking with our, through DME. 00:42:34.960 --> 00:42:36.000 And as we move forward, 00:42:36.000 --> 00:42:37.280 we're gonna be talking a little bit 00:42:37.280 --> 00:42:40.520 about some potential RENS and RECs 00:42:40.520 --> 00:42:42.960 as a result of what we do at the landfill. 00:42:42.960 --> 00:42:44.320 We talk about RENS, 00:42:44.320 --> 00:42:47.560 specifically applied to renewable fuels 00:42:47.560 --> 00:42:49.920 and appropriate environmental credits as such. 00:42:49.920 --> 00:42:51.240 And again, when we talk about RECs, 00:42:51.240 --> 00:42:55.520 we're talking about the generation of energy 00:42:55.520 --> 00:42:58.640 and the trading of those renewable energy credits. 00:42:58.640 --> 00:43:00.640 So they're basically the same thing 00:43:00.640 --> 00:43:03.760 except RENS are tied to fuel, RECs are tied to energy. 00:43:03.760 --> 00:43:06.560 So what is landfill gas? 00:43:06.560 --> 00:43:11.000 Again, it's produced in the landfill itself. 00:43:11.000 --> 00:43:14.800 You'll notice that it starts with the waste 00:43:14.800 --> 00:43:16.640 that is in the landfill. 00:43:16.640 --> 00:43:21.640 We have wells, the methane is collected through headers. 00:43:21.640 --> 00:43:25.840 It comes through a vacuum at where it may be flared 00:43:25.840 --> 00:43:28.640 or used for some beneficial reuse. 00:43:28.640 --> 00:43:32.400 Currently, we have a generator at the facility 00:43:32.400 --> 00:43:34.440 producing about 1.6 megawatt 00:43:34.440 --> 00:43:39.440 and it's used to provide energy to city of Denton homes. 00:43:39.440 --> 00:43:42.800 However, there are other options and opportunities 00:43:42.800 --> 00:43:45.400 for methane to be used, 00:43:45.400 --> 00:43:47.680 whether it's what we call low BTU, 00:43:47.680 --> 00:43:51.080 where it's used for heat in some industrial source, 00:43:51.080 --> 00:43:56.080 arts and crafts, just something to burn for the heat value 00:43:56.080 --> 00:43:59.160 or we can further refine it into high BTU gas 00:43:59.160 --> 00:44:00.480 where it's put into a pipeline 00:44:00.480 --> 00:44:02.280 and maybe used for vehicle fuel, 00:44:02.280 --> 00:44:05.040 maybe used in your home for your hot water heater 00:44:05.040 --> 00:44:06.520 or your stove or anything else. 00:44:06.520 --> 00:44:09.600 So we're taking the existing landfill gas 00:44:09.600 --> 00:44:13.080 and purifying it and making it just beneficially reusable 00:44:13.080 --> 00:44:15.040 in the neighborhood. 00:44:15.040 --> 00:44:17.360 When you currently look at what's happening 00:44:17.360 --> 00:44:20.800 to our landfill gas or the composition of our landfill gas, 00:44:20.800 --> 00:44:24.560 we have about 53% that is methane only 00:44:24.560 --> 00:44:27.000 or that's what the composition of the gas is. 00:44:27.000 --> 00:44:31.400 About 38% of that gas is carbon dioxide 00:44:31.400 --> 00:44:33.600 and the remaining 9% is oxygen 00:44:33.600 --> 00:44:35.400 and other what we call balanced gases. 00:44:35.400 --> 00:44:38.200 So nitrogen and hydrogen sulfide 00:44:38.200 --> 00:44:43.200 and other gases that occur as a result of the decomposition 00:44:44.440 --> 00:44:46.120 of the organic waste in the material. 00:44:46.120 --> 00:44:49.320 So again, this is what our landfill gas component 00:44:49.320 --> 00:44:50.160 looks like. 00:44:50.160 --> 00:44:55.000 Currently we're burning this unfiltered, untreated 00:44:55.000 --> 00:44:58.120 and our engines allow us to do this 00:44:58.120 --> 00:45:00.560 but depending on how we decide to manage our gas 00:45:00.560 --> 00:45:02.440 in the future, we may have to treat it 00:45:02.440 --> 00:45:03.920 in some way, shape or form. 00:45:03.920 --> 00:45:07.600 Landfill gas management is very heavily regulated 00:45:07.600 --> 00:45:12.600 into sub activity of what we do at the landfill. 00:45:13.800 --> 00:45:16.720 Currently both state and federal law require us 00:45:16.720 --> 00:45:18.960 to have plans and programs in place 00:45:18.960 --> 00:45:20.800 to capture that gas and manage it. 00:45:20.800 --> 00:45:24.280 Our permit also requires us to have a program in place 00:45:24.280 --> 00:45:25.560 to manage the gas. 00:45:25.560 --> 00:45:29.080 We also have permits and registrations 00:45:29.080 --> 00:45:32.240 to run the electric facility that we have out there 00:45:32.240 --> 00:45:35.200 as well as maintain the gas flare that is on the site. 00:45:35.200 --> 00:45:39.320 Currently our landfill gas is managed by, 00:45:39.320 --> 00:45:44.080 we have 110 wells in the landfill right now proper 00:45:44.080 --> 00:45:45.560 that is currently collecting gas 00:45:45.560 --> 00:45:48.480 from the waste mass that is in place. 00:45:48.480 --> 00:45:51.880 About a month ago, DME bought the assets 00:45:51.880 --> 00:45:53.440 and the company from DTE, 00:45:53.440 --> 00:45:56.720 which operates our landfills gas to energy facility 00:45:56.720 --> 00:45:58.720 where we power an engine that turns a generator, 00:45:58.720 --> 00:46:03.720 again, generating about 1.6 megawatts of energy from that. 00:46:03.720 --> 00:46:09.240 We are nearing the end of life on this facility. 00:46:09.440 --> 00:46:11.520 When we first contracted with DTE, 00:46:11.520 --> 00:46:15.920 the contractor was to run through 2024. 00:46:15.920 --> 00:46:19.080 And this is sort of a perfect storm. 00:46:19.080 --> 00:46:23.360 Prior to DME acquiring the DTE assets, 00:46:23.360 --> 00:46:26.000 we were thinking about what the long-term use would be 00:46:26.000 --> 00:46:31.000 after 2024 and we had actually started some planning work 00:46:31.000 --> 00:46:34.240 for what we might have to do in this next three years 00:46:34.240 --> 00:46:35.600 to ensure that we're managing 00:46:35.600 --> 00:46:37.840 our landfill gas appropriately. 00:46:38.720 --> 00:46:41.240 DTE, DME currently owns the facility 00:46:41.240 --> 00:46:43.520 and we're working with them in this next step. 00:46:43.520 --> 00:46:46.520 Even though we have a landfill gas 00:46:46.520 --> 00:46:49.280 to energy generator on the site, 00:46:49.280 --> 00:46:54.080 we generate more methane than what the engine can use. 00:46:54.080 --> 00:46:57.120 So we have a candlestick flare on the site 00:46:57.120 --> 00:47:00.760 to manage excess gas, burn it off. 00:47:00.760 --> 00:47:04.440 And then also when the generator is down for maintenance 00:47:04.440 --> 00:47:06.360 or other repair, 00:47:06.360 --> 00:47:08.840 then the candlestick flare that's on the site 00:47:08.840 --> 00:47:11.840 is sized appropriately to manage 100% of the gas, 00:47:11.840 --> 00:47:14.840 to flare 100% of the gas that's at the site. 00:47:14.840 --> 00:47:18.840 Currently the city of Denton Solid Waste Recycling, 00:47:18.840 --> 00:47:21.120 we do receive an annual rent payment revenue share 00:47:21.120 --> 00:47:24.920 of about $145,000 a year as a result of this activity. 00:47:24.920 --> 00:47:27.440 And as I've stated on several times already, 00:47:27.440 --> 00:47:30.280 the power that's generated is used by Denton residents 00:47:30.280 --> 00:47:33.400 to power their homes and with the electricity. 00:47:34.440 --> 00:47:36.920 Currently the city of Denton Landfill generates 00:47:36.920 --> 00:47:41.440 about 360,000 cubic feet of landfill gas per year. 00:47:41.440 --> 00:47:45.160 In the 2018 Landfill Gas Emission Report, 00:47:45.160 --> 00:47:49.200 we noted an increase of about 6.8% of generation. 00:47:49.200 --> 00:47:53.000 That means, and as a result of us putting additional wells 00:47:53.000 --> 00:47:54.640 in this, excuse me, 00:47:54.640 --> 00:47:59.640 as a result of anticipated increased waste acceptance, 00:47:59.880 --> 00:48:04.880 or regional growth, regional waste transport dynamics, 00:48:04.880 --> 00:48:10.200 that is what is driving that calculation. 00:48:10.200 --> 00:48:13.360 Now, again, this methane stays in place in the landfill 00:48:13.360 --> 00:48:14.600 until it's extracted. 00:48:14.600 --> 00:48:17.080 So even though we may be generating anymore, 00:48:17.080 --> 00:48:20.360 it's remaining in place and not getting into the atmosphere. 00:48:20.360 --> 00:48:22.400 When you look at the emission capture, 00:48:22.400 --> 00:48:25.760 we've actually increased that by 31% over 2017. 00:48:25.760 --> 00:48:27.320 And again, that's due to the increased number 00:48:27.320 --> 00:48:31.320 of extraction wells we installed earlier this year. 00:48:31.320 --> 00:48:32.800 You may remember there was a contract 00:48:32.800 --> 00:48:35.760 to install 15 additional wells at the facility. 00:48:35.760 --> 00:48:38.840 We've increased the size of the header and as a result, 00:48:38.840 --> 00:48:42.360 we've been able to capture and manage the gas 00:48:42.360 --> 00:48:43.280 that we are producing. 00:48:43.280 --> 00:48:48.280 And again, the landfill gas to energy generator 00:48:48.280 --> 00:48:50.200 was already running at capacity. 00:48:50.200 --> 00:48:53.280 So these emissions are destroyed through the flare. 00:48:53.280 --> 00:48:57.160 And again, the remaining through the engine. 00:48:57.160 --> 00:48:59.120 Do need to underline that Denton is compliant 00:48:59.120 --> 00:49:00.800 with its landfill permit requirements, 00:49:00.800 --> 00:49:04.360 as well as the federal and state landfill gas 00:49:04.360 --> 00:49:06.800 management requirements with the activities 00:49:06.800 --> 00:49:08.560 that we currently are using. 00:49:08.560 --> 00:49:13.960 As I stated a couple of minutes ago, 00:49:13.960 --> 00:49:15.680 in this three year period, 00:49:15.680 --> 00:49:18.040 before the end of the DTE contract, 00:49:18.040 --> 00:49:20.240 we knew that there were different options 00:49:20.240 --> 00:49:21.600 to potentially manage our gas. 00:49:21.600 --> 00:49:26.600 And as the landfill continues to fill and generate gas, 00:49:26.880 --> 00:49:29.040 we wanted to make sure that we were using, 00:49:29.040 --> 00:49:34.040 managing the landfill gas that is in the most appropriate 00:49:34.040 --> 00:49:37.160 and environmentally sensitive manner that we could. 00:49:37.160 --> 00:49:41.080 We went out and we hired SCS engineers to evaluate options 00:49:41.080 --> 00:49:45.200 based on what our historic landfill gas generation profile 00:49:45.200 --> 00:49:47.720 has been as well as what our projection is going forward 00:49:47.720 --> 00:49:51.360 to the end of life on our current landfill permit. 00:49:51.360 --> 00:49:54.320 What they've done is reviewed landfill gas generation 00:49:54.320 --> 00:49:58.120 for the next 20 years, and they did an economic 00:49:58.120 --> 00:50:00.600 and technical screening of the alternatives. 00:50:00.600 --> 00:50:02.840 And basically we find that, 00:50:02.840 --> 00:50:05.120 when you look at these alternatives out there, 00:50:05.120 --> 00:50:07.400 electric generation like we're currently doing, 00:50:07.400 --> 00:50:09.120 medium BTU and high BTU 00:50:09.120 --> 00:50:11.560 for natural gas pipeline injection. 00:50:11.560 --> 00:50:13.680 What they found looking through this 00:50:13.680 --> 00:50:15.480 and through the calculations is that 00:50:15.480 --> 00:50:17.480 we do have sufficient landfill gas 00:50:17.480 --> 00:50:19.520 to support beneficial reuse. 00:50:19.520 --> 00:50:23.720 But when you look at the financial portion of this, 00:50:23.720 --> 00:50:27.600 really only flaring and high BTU management 00:50:27.600 --> 00:50:29.520 are financially viable. 00:50:29.520 --> 00:50:32.280 Meaning that there's no subsidy that is required 00:50:32.280 --> 00:50:36.800 from any city of Denton rate payer to support or drive 00:50:36.800 --> 00:50:40.200 that management process. 00:50:40.200 --> 00:50:43.920 And we'll discuss the economics here in just a minute. 00:50:43.920 --> 00:50:47.360 And when you look at the return on investment for high BTU, 00:50:47.360 --> 00:50:51.000 it's driven by what our current natural landfill, 00:50:51.000 --> 00:50:54.480 or excuse me, what the current natural gas prices are, 00:50:54.480 --> 00:50:57.840 as well as what the rent and rec market are currently doing. 00:50:57.840 --> 00:51:01.120 So again, there's a lot of moving parts here. 00:51:01.120 --> 00:51:02.800 When we look at what our options are, 00:51:02.800 --> 00:51:05.040 again, flaring, we're gonna burn it. 00:51:05.040 --> 00:51:07.360 Landfill gas to energy, we're gonna generate 00:51:07.360 --> 00:51:10.800 as much electricity from a generator on site 00:51:10.800 --> 00:51:13.280 and then burn any excess in our flare. 00:51:13.280 --> 00:51:16.000 From a medium BTU standpoint, we did not consider that 00:51:16.000 --> 00:51:18.120 only because based on current zoning 00:51:18.120 --> 00:51:20.840 and current industry in the area, 00:51:20.840 --> 00:51:22.760 there really is no local industry 00:51:22.760 --> 00:51:24.960 that would be able to use this heat. 00:51:24.960 --> 00:51:26.120 And in addition to that, 00:51:26.120 --> 00:51:28.040 it would require stability mute pipeline, 00:51:28.040 --> 00:51:32.880 which would require additional right of way acquisition 00:51:32.880 --> 00:51:35.160 and we would still need to flare. 00:51:35.160 --> 00:51:38.280 So, and then from the high BTU standpoint, again, 00:51:38.280 --> 00:51:42.640 we're scrubbing the landfill gas to make it 99.94% methane 00:51:42.640 --> 00:51:46.960 or better pipeline quality injected into the pipeline. 00:51:46.960 --> 00:51:48.840 And again, beneficially reused in the homes 00:51:48.840 --> 00:51:52.240 of Denton residents, cooking, vehicle fuel, 00:51:52.240 --> 00:51:54.400 hot water, things of that nature. 00:51:54.400 --> 00:51:56.880 What I do need to underline here, 00:51:56.880 --> 00:52:00.680 regardless of the option that we choose to go forward with, 00:52:00.680 --> 00:52:03.600 a flare will always be required at the landfill. 00:52:03.600 --> 00:52:06.640 First of all, it is a regulatory requirement, 00:52:06.640 --> 00:52:09.560 but secondarily, it is efficient for managing 00:52:09.560 --> 00:52:13.520 any of the gas that either may be excess 00:52:13.520 --> 00:52:17.320 or as a result of maintenance on any of the facilities 00:52:17.320 --> 00:52:19.480 that we, as we move forward. 00:52:19.480 --> 00:52:23.880 This is really a telling graph 00:52:23.880 --> 00:52:27.400 because it talks about the relative cost, 00:52:27.400 --> 00:52:31.640 net cost of our different options here, 00:52:31.640 --> 00:52:34.360 coupled with the environmental benefits 00:52:34.360 --> 00:52:35.800 of these alternatives. 00:52:35.800 --> 00:52:38.680 Along your X axis here, to the left side, 00:52:38.680 --> 00:52:41.000 you've got a very, very high environmental impact, 00:52:41.000 --> 00:52:45.320 very high emitting opportunity. 00:52:45.320 --> 00:52:50.000 As you move to the right, the environmental impacts decrease 00:52:50.000 --> 00:52:55.000 from the Y axis, very low cost, net cost to residents, 00:52:55.000 --> 00:52:59.400 meaning it'll be either be cost neutral 00:52:59.400 --> 00:53:02.360 or actually generate revenue for the city 00:53:02.360 --> 00:53:05.240 up to a very high control cost, 00:53:05.240 --> 00:53:07.320 which would mean there'd be sufficient subsidy 00:53:07.320 --> 00:53:10.800 by Denton rate payers, depending on that option. 00:53:10.800 --> 00:53:13.360 Our current option is our landfill 00:53:13.360 --> 00:53:16.320 electric generation facility. 00:53:16.320 --> 00:53:20.080 It is expensive to do, very high on the maintenance, 00:53:20.080 --> 00:53:22.720 and as a result, it is very, very costly, 00:53:22.720 --> 00:53:27.200 and as you can see here, fairly high environmental impact. 00:53:27.200 --> 00:53:30.400 As you move forward, again, we're not gonna be evaluating 00:53:30.400 --> 00:53:33.880 medium BTU because we don't have a customer to do that, 00:53:33.880 --> 00:53:38.520 which leads us to either flaring or high BTU 00:53:38.520 --> 00:53:41.480 from a cost benefit analysis 00:53:41.480 --> 00:53:44.840 related to environmental benefit and fiscal cost. 00:53:44.840 --> 00:53:48.520 On your high BTU, which again is the program 00:53:48.520 --> 00:53:51.120 we're gonna be recommending at the end of this presentation, 00:53:51.120 --> 00:53:53.640 it has a very high upfront cost, 00:53:53.640 --> 00:53:57.320 but again, over the life of the project itself, 00:53:57.320 --> 00:53:59.480 it has the lowest net cost because again, 00:53:59.480 --> 00:54:02.240 we have a sale and a rent and a rec 00:54:02.240 --> 00:54:04.200 that will help subsidize this outside 00:54:04.200 --> 00:54:06.640 of city of Denton rate payers. 00:54:08.080 --> 00:54:12.640 From a relative emission of our options as we move forward, 00:54:12.640 --> 00:54:15.400 you can see that between the flare and the engine 00:54:15.400 --> 00:54:18.560 and the high BTU, the high BTU facility again, 00:54:18.560 --> 00:54:23.120 is the lowest emitting from the process itself. 00:54:23.120 --> 00:54:25.840 The high BTU does not take into account the end use, 00:54:25.840 --> 00:54:29.040 whether it's at your stove, at your hot water heater, 00:54:29.040 --> 00:54:30.920 whatever the vehicle that's using it, 00:54:30.920 --> 00:54:33.960 this is actually the process itself. 00:54:33.960 --> 00:54:37.240 And again, this evaluation is based on 00:54:37.240 --> 00:54:41.240 our approximately 36,000 cubic feet of landfill gas 00:54:41.240 --> 00:54:42.760 that we produce in any given year. 00:54:42.760 --> 00:54:45.880 So as a result of this, we would anticipate 00:54:45.880 --> 00:54:49.400 that only 2.75 tons of carbon monoxide 00:54:49.400 --> 00:54:52.840 would be generated from the conversion 00:54:52.840 --> 00:54:56.440 of that 36,000 cubic feet and so on and so forth. 00:54:56.440 --> 00:54:59.840 From the flare operations, again, 00:54:59.840 --> 00:55:04.080 federal and state law require that we have a flare on site 00:55:04.080 --> 00:55:05.400 and it'd be operated. 00:55:05.400 --> 00:55:10.400 It is currently sized to manage the complete build out 00:55:10.400 --> 00:55:14.360 of our existing landfill permit, 1590A. 00:55:14.360 --> 00:55:18.680 Should the city be successful in obtaining its expansion 00:55:18.680 --> 00:55:22.280 for its 1590B, then the installation of a second flare 00:55:22.280 --> 00:55:24.920 or a larger flare will be required to manage 00:55:24.920 --> 00:55:28.080 the landfill gas that will ultimately be generated 00:55:28.080 --> 00:55:29.800 at that facility. 00:55:29.800 --> 00:55:33.560 Again, if we're looking at from a flaring standpoint 00:55:33.560 --> 00:55:36.160 by each control technology, if we're only operating 00:55:36.160 --> 00:55:39.760 a flare, then it will operate 24/7, 365. 00:55:39.760 --> 00:55:43.200 If we're looking at landfill gas to energy, 00:55:43.200 --> 00:55:46.000 again, it will continuously operate 00:55:46.000 --> 00:55:48.920 only because we have to flare the excess gas 00:55:48.920 --> 00:55:51.400 that we cannot currently use to run a second engine. 00:55:51.400 --> 00:55:53.840 And based on current growth curves, 00:55:53.840 --> 00:55:56.880 it suggests that it would be at least 20, 25 00:55:56.880 --> 00:55:59.720 before we would have sufficient reliable gas 00:55:59.720 --> 00:56:03.240 to put input a second engine at the facility. 00:56:03.240 --> 00:56:06.280 Bringing this back to medium or actually high BTU plant, 00:56:06.280 --> 00:56:08.040 we would estimate that the flare would operate 00:56:08.040 --> 00:56:10.640 less than 1% of the time and really only 00:56:10.640 --> 00:56:13.080 during maintenance startup and shutdown. 00:56:13.080 --> 00:56:15.760 Ideally, you wanna capture every molecule of gas 00:56:15.760 --> 00:56:19.120 that's produced, put it in a pipeline for beneficial reuse 00:56:19.120 --> 00:56:20.320 at the end of the day. 00:56:20.320 --> 00:56:23.800 When you look at the cost benefit analysis, 00:56:23.800 --> 00:56:28.720 again, a lot of the cost for a high BTU facility 00:56:28.720 --> 00:56:33.520 is an upfront capital cost of about $23 million. 00:56:33.520 --> 00:56:36.080 And there's options for the city to operate, 00:56:36.080 --> 00:56:39.680 own and operate it ourselves to contract with the third party. 00:56:39.680 --> 00:56:41.360 But again, you'll see that the rate of return, 00:56:41.360 --> 00:56:45.240 net present value on these facilities 00:56:45.240 --> 00:56:49.520 is fairly impressive. 00:56:49.520 --> 00:56:52.200 If the city owned and operated its own facility, 00:56:52.200 --> 00:56:55.920 we would anticipate that the net present value 00:56:55.920 --> 00:56:58.600 would be about $18 million. 00:56:58.600 --> 00:57:01.360 Third party and paying royalties back to the city, 00:57:01.360 --> 00:57:05.000 that would drop to about $1.5 million, 00:57:05.000 --> 00:57:07.600 only because again, the bonding and the indebtedness 00:57:07.600 --> 00:57:10.560 on the front end by that third party taking those risks, 00:57:10.560 --> 00:57:12.080 it would significantly reduce the amount 00:57:12.080 --> 00:57:15.920 that we would be able to recover. 00:57:15.920 --> 00:57:19.480 From the city's own electric generator, 00:57:19.480 --> 00:57:21.640 again, you'll see that over the over 10 year, 00:57:21.640 --> 00:57:26.640 there's a net negative value in that 00:57:26.920 --> 00:57:28.520 only because of the price of operation, 00:57:28.520 --> 00:57:31.520 as well as the cost of the gas and the energy. 00:57:31.520 --> 00:57:35.560 And as a result, we don't propose that we move forward 00:57:35.560 --> 00:57:37.920 with the electric generator. 00:57:37.920 --> 00:57:42.000 Based on what we anticipate average annual income, 00:57:42.000 --> 00:57:44.800 if the city owned the high BTU facility, 00:57:44.800 --> 00:57:46.440 we'd anticipate a net income 00:57:46.440 --> 00:57:48.640 of about $2.5 million a year. 00:57:48.640 --> 00:57:52.400 If we had a third party own it and operate it 00:57:52.400 --> 00:57:53.360 and pay us royalty back, 00:57:53.360 --> 00:57:56.320 that dropped us down to about $200,000 a year. 00:57:56.320 --> 00:57:59.760 However, looking down to about 20 years, 00:57:59.760 --> 00:58:02.400 if we took this out to 20 years, 00:58:02.400 --> 00:58:06.040 that third party royalty would jump up to about 1.75. 00:58:06.040 --> 00:58:10.040 And again, that's a result of the upfront cost to build 00:58:10.040 --> 00:58:12.000 and the debt service on that. 00:58:12.000 --> 00:58:17.200 Again, as we look at high BTU facilities, 00:58:17.200 --> 00:58:19.720 the major variables from an economic standpoint, 00:58:19.720 --> 00:58:23.040 again, the price of gas on the open market, 00:58:23.040 --> 00:58:24.720 the rents and the wrecks that are out there, 00:58:24.720 --> 00:58:28.000 how much those would be able to cost. 00:58:28.000 --> 00:58:29.920 And again, capital cost, 00:58:29.920 --> 00:58:32.600 again, upfront is about $26 million to build 00:58:32.600 --> 00:58:35.000 or site one of these facilities. 00:58:35.000 --> 00:58:40.000 Depending on, and this does not include the cost of a flare 00:58:40.000 --> 00:58:41.680 or any gathering system, 00:58:41.680 --> 00:58:44.280 because again, that we're required to have that system 00:58:44.280 --> 00:58:47.560 regardless of which path we go down. 00:58:47.560 --> 00:58:49.120 So we did not include that cost 00:58:49.120 --> 00:58:51.680 in the evaluation moving forward. 00:58:52.760 --> 00:58:56.120 As a go forward, staff is gonna recommend 00:58:56.120 --> 00:59:00.200 that we would develop a high BTU at this high BTU facility 00:59:00.200 --> 00:59:01.960 at the city of Denton landfill 00:59:01.960 --> 00:59:06.200 and actually prepare an RFP to identify a third party 00:59:06.200 --> 00:59:09.960 to own and operate the facility as we move forward. 00:59:09.960 --> 00:59:12.560 Again, supporting our long-term vision 00:59:12.560 --> 00:59:14.000 of the solid waste program, 00:59:14.000 --> 00:59:15.880 minimizing environmental impacts 00:59:15.880 --> 00:59:19.240 and creating a high probability of return on investment 00:59:19.240 --> 00:59:20.960 to the city of Denton landfill. 00:59:20.960 --> 00:59:23.680 In this time, we would also work to shut down 00:59:23.680 --> 00:59:25.800 the existing electric generation facility 00:59:25.800 --> 00:59:27.640 only because it is end of life 00:59:27.640 --> 00:59:30.240 and the cost to rate payers is significant. 00:59:30.240 --> 00:59:32.560 And we would flare the existing gas 00:59:32.560 --> 00:59:35.840 while we're trying to bring a new system up. 00:59:35.840 --> 00:59:37.720 We anticipate it would take about one and a half 00:59:37.720 --> 00:59:41.160 to three years to bring up a high BTU facility. 00:59:41.160 --> 00:59:42.800 We would have to go through engineering, 00:59:42.800 --> 00:59:45.800 preparation of RFP, the design, the construction, 00:59:45.800 --> 00:59:48.000 the permitting, and then facility startup. 00:59:48.000 --> 00:59:49.880 And depending on whether we're using a package plant 00:59:49.880 --> 00:59:53.480 or we're building a basically a greenfield facility 00:59:53.480 --> 00:59:58.480 from dirt to a fixed construction site, 00:59:58.480 --> 01:00:00.880 that's what the variable is on that. 01:00:00.880 --> 01:00:04.000 So that is what our recommendation is. 01:00:04.000 --> 01:00:04.840 And at this point, 01:00:04.840 --> 01:00:07.000 I'd like to open it up for discussion 01:00:07.000 --> 01:00:10.120 and ultimate direction supporting this proposal. 01:00:10.120 --> 01:00:14.480 - All right, question. 01:00:14.480 --> 01:00:16.360 Karen had her hand up first. 01:00:16.360 --> 01:00:17.200 - Okay. 01:00:17.200 --> 01:00:22.200 - I just had a quick typo on page six, 01:00:22.200 --> 01:00:27.640 we've got the 360,000, 01:00:27.640 --> 01:00:31.320 the amount of gas that's generated. 01:00:31.320 --> 01:00:37.720 On slide six, you've got 350,000, thousand. 01:00:37.720 --> 01:00:39.600 - Okay. 01:00:39.600 --> 01:00:41.440 - You might wanna get rid of the extra thousand 01:00:41.440 --> 01:00:43.080 'cause that's gonna be confusing. 01:00:46.520 --> 01:00:49.240 - Thank you for catching up, we apologize. 01:00:49.240 --> 01:00:51.760 - Yeah, Brian, good presentation. 01:00:51.760 --> 01:00:56.760 One suggestion, I didn't see the initial upfront capital 01:00:56.760 --> 01:01:01.920 outlay of, I think you said 26 million for this facility. 01:01:01.920 --> 01:01:05.080 You might wanna add that somewhere to your presentation 01:01:05.080 --> 01:01:07.920 because when I first looked at the numbers, 01:01:07.920 --> 01:01:12.240 I thought, gee, $18 million is better than $1 million. 01:01:12.240 --> 01:01:14.560 So why don't we go with the 18 million? 01:01:14.560 --> 01:01:17.040 But when you throw in the upfront capital cost, 01:01:17.040 --> 01:01:19.440 that explains that better. 01:01:19.440 --> 01:01:23.400 Second thing, do you have any idea 01:01:23.400 --> 01:01:26.160 of what the physical size or the footprint 01:01:26.160 --> 01:01:28.520 for this facility would have to be? 01:01:28.520 --> 01:01:35.560 - We would anticipate it would be about an acre and a half. 01:01:35.560 --> 01:01:37.880 - Okay. 01:01:37.880 --> 01:01:42.600 - And the capital cost is on slide 13. 01:01:43.480 --> 01:01:44.960 - Okay, I guess I missed that. 01:01:44.960 --> 01:01:49.320 - Yeah, 'cause I went $26.1 million. 01:01:49.320 --> 01:01:53.120 Yes, Ed, go ahead. 01:01:53.120 --> 01:01:54.800 And then Charlie. 01:01:54.800 --> 01:01:59.800 - Yeah, I went back and I looked at the TCEQ permit 01:01:59.800 --> 01:02:05.480 application that Brian referenced, the 1590B. 01:02:05.480 --> 01:02:10.800 And I saw in there that the city completed 01:02:10.800 --> 01:02:14.840 what was called SSO, which is a source-separated 01:02:14.840 --> 01:02:19.840 organics composting pilot study in early 2011. 01:02:19.840 --> 01:02:25.720 And subsequently, they were able to operate this facility 01:02:25.720 --> 01:02:32.520 effective January 9th, 2012. 01:02:32.520 --> 01:02:36.200 And it says that the city receives SSO materials, 01:02:36.200 --> 01:02:39.800 that is source-separated organic materials, 01:02:39.800 --> 01:02:43.720 such as produce, meats, beverages, 01:02:43.720 --> 01:02:48.240 and other vegetative materials, such as yard waste, 01:02:48.240 --> 01:02:51.880 at its organics composting facility. 01:02:51.880 --> 01:02:55.920 My question is, is the city currently operating 01:02:55.920 --> 01:03:00.000 a composting facility that takes food waste 01:03:00.000 --> 01:03:01.640 as a major component? 01:03:01.640 --> 01:03:05.040 - Not as a major component. 01:03:05.040 --> 01:03:06.560 In our current yard waste program, 01:03:06.560 --> 01:03:09.640 you can use vegetable clippings and things of that nature, 01:03:09.640 --> 01:03:11.920 but no post-consumer material. 01:03:11.920 --> 01:03:16.320 Part of what our permit application under 1590B 01:03:16.320 --> 01:03:19.360 allows us to do is take that information 01:03:19.360 --> 01:03:21.960 that was obtained from the pilot program 01:03:21.960 --> 01:03:24.360 that was established and make it a permanent facility. 01:03:24.360 --> 01:03:27.760 So it allows us the permitting to do it full-time 01:03:27.760 --> 01:03:31.280 going forward once the permit is awarded. 01:03:31.280 --> 01:03:34.200 - Okay, if I can follow up on that. 01:03:34.200 --> 01:03:38.920 So the composting facility is in place then, 01:03:38.920 --> 01:03:40.120 is that correct? 01:03:40.120 --> 01:03:43.200 - It is the dino-dirt facility that we currently have. 01:03:43.200 --> 01:03:45.360 So it takes the yard waste, takes the biosolids, 01:03:45.360 --> 01:03:48.560 and we do have a couple of commercial customers 01:03:48.560 --> 01:03:51.400 that we do take organic material from. 01:03:51.400 --> 01:03:55.400 So waste fruits and vegetables that have not been sold 01:03:55.400 --> 01:03:58.280 at any post-prepared food waste 01:03:58.280 --> 01:04:00.040 that cannot go into our facility. 01:04:00.040 --> 01:04:02.400 - Okay, good, I'm glad to learn that. 01:04:02.400 --> 01:04:07.400 Now my question is, why isn't an expansion 01:04:07.880 --> 01:04:12.880 of the composting program and an accompanying 01:04:12.880 --> 01:04:16.640 cost examination in comparison 01:04:16.640 --> 01:04:19.600 with this $26 million project, 01:04:19.600 --> 01:04:22.840 why is that option of expanding 01:04:22.840 --> 01:04:28.000 the city's current composting program, 01:04:28.000 --> 01:04:31.960 why is that not also an option in this case 01:04:31.960 --> 01:04:35.840 to help manage the landfill gas production? 01:04:37.040 --> 01:04:38.000 - There are several reasons. 01:04:38.000 --> 01:04:41.680 First of all, 1590B permit allows us the, 01:04:41.680 --> 01:04:44.400 will allow us the opportunity 01:04:44.400 --> 01:04:47.960 to actually create a composting program 01:04:47.960 --> 01:04:49.680 that you're speaking of. 01:04:49.680 --> 01:04:52.560 Secondarily, our comprehensive solid waste management 01:04:52.560 --> 01:04:54.880 strategy will actually look at the cost benefit 01:04:54.880 --> 01:04:57.000 related to that and give us some strategies 01:04:57.000 --> 01:05:01.240 to move forward to make that an effective policy. 01:05:01.240 --> 01:05:04.160 And thirdly, regardless of whether we take, 01:05:04.160 --> 01:05:09.160 have a compost program in place or take material or not, 01:05:09.160 --> 01:05:10.880 the city of Denton's landfill 01:05:10.880 --> 01:05:14.160 will always generate landfill gas. 01:05:14.160 --> 01:05:17.760 And we are looking at the manager of that material forward 01:05:17.760 --> 01:05:21.080 with this specific program. 01:05:21.080 --> 01:05:22.360 - I understand that. 01:05:22.360 --> 01:05:25.560 And, but it just seems to make common sense 01:05:25.560 --> 01:05:30.000 that the easiest and perhaps most successful way 01:05:30.000 --> 01:05:33.720 to reduce the methane would be to reduce 01:05:33.720 --> 01:05:36.840 the amount of methane generating materials. 01:05:36.840 --> 01:05:41.080 And I have a question. 01:05:41.080 --> 01:05:44.720 I mean, I don't understand why this is being presented 01:05:44.720 --> 01:05:49.320 before we've even seen a solid waste strategic plan. 01:05:49.320 --> 01:05:51.400 We won't see that until next month. 01:05:51.400 --> 01:05:53.640 So I think this is sort of jumping the gun. 01:05:53.640 --> 01:05:56.240 I think there's a lot more work needs to be done 01:05:56.240 --> 01:05:59.640 with this $26 million investment. 01:05:59.640 --> 01:06:02.120 And that's a lot of money, needless to say. 01:06:02.120 --> 01:06:04.960 And we need to find out what the options are 01:06:04.960 --> 01:06:09.280 with expanding our composting program. 01:06:09.280 --> 01:06:11.640 And I say this because I've done some research 01:06:11.640 --> 01:06:14.320 and seen what other cities have done 01:06:14.320 --> 01:06:16.600 and the results of it and the financial 01:06:16.600 --> 01:06:18.880 and environmental benefits of it. 01:06:18.880 --> 01:06:22.400 So I would feel very much more comfortable 01:06:22.400 --> 01:06:25.720 with giving direction on this after we know more 01:06:25.720 --> 01:06:29.480 about other options. 01:06:29.480 --> 01:06:34.480 And especially after we've seen this new strategic plan. 01:06:34.480 --> 01:06:39.360 I cannot see giving direction to move ahead with this now 01:06:39.360 --> 01:06:42.240 until we know what the big picture is. 01:06:42.240 --> 01:06:43.640 Thank you. 01:06:43.640 --> 01:06:45.920 - Well, and this is Tony, just to be clear. 01:06:45.920 --> 01:06:48.600 So the proposal from staff today 01:06:48.600 --> 01:06:53.320 is not to do the $26 million option. 01:06:53.320 --> 01:06:54.160 So just to be clear. 01:06:54.160 --> 01:06:55.640 And then the other item that I'll mention 01:06:55.640 --> 01:06:58.520 is we do have an upcoming discussion, 01:06:58.520 --> 01:07:00.360 I think with the PB and the council, 01:07:00.360 --> 01:07:03.560 also to talk about dyno dirt and biosolids 01:07:03.560 --> 01:07:05.640 and some additional requests that they've made 01:07:05.640 --> 01:07:08.560 that may also go to answer some of your questions. 01:07:08.560 --> 01:07:10.120 But again, I just want to be clear that 01:07:10.120 --> 01:07:11.360 the recommendation from staff today 01:07:11.360 --> 01:07:13.520 is not to do the $26 million investment. 01:07:13.520 --> 01:07:17.520 - To work with a third party, correct? 01:07:17.520 --> 01:07:19.080 - That's correct. 01:07:19.080 --> 01:07:22.760 - Which would come back to this board before it's approved. 01:07:22.760 --> 01:07:23.600 - Absolutely. 01:07:23.600 --> 01:07:27.080 - Does that give you more comfort, Ed? 01:07:27.080 --> 01:07:30.560 - I would still like to have the expansion 01:07:30.560 --> 01:07:33.240 of the composting program included as an option. 01:07:33.240 --> 01:07:38.800 - That is going to end up being a separate budgetary program 01:07:38.800 --> 01:07:40.760 that we'll do the research for you, 01:07:40.760 --> 01:07:42.600 try to figure out how we get that off the ground. 01:07:42.600 --> 01:07:46.040 But that is wholly independent of this particular issue 01:07:46.040 --> 01:07:48.560 where in this particular program, 01:07:48.560 --> 01:07:50.360 we can actually end up doing both 01:07:50.360 --> 01:07:53.200 if the PUB and the council want us to add that service. 01:07:53.200 --> 01:07:55.120 But you're talking about a program addition 01:07:55.120 --> 01:07:57.320 that is currently not budgeted 01:07:57.320 --> 01:07:59.760 and that we need to do the proper due diligence on. 01:07:59.760 --> 01:08:02.520 So nothing's going to hold us back from that 01:08:02.520 --> 01:08:04.000 if the council and PUB want to do it, 01:08:04.000 --> 01:08:06.560 but it is completely independent of this project 01:08:06.560 --> 01:08:10.560 where we're asking for that approval. 01:08:10.560 --> 01:08:11.720 - Okay, thank you. 01:08:11.720 --> 01:08:15.400 But the bottom line is, according to the, 01:08:15.400 --> 01:08:17.560 what this permit application says, 01:08:17.560 --> 01:08:21.800 is that the composting facility has been permitted 01:08:21.800 --> 01:08:24.040 and is in place. 01:08:24.040 --> 01:08:26.880 - The yard waste. 01:08:26.880 --> 01:08:30.280 - Yeah, the yard waste permitting, yes. 01:08:30.280 --> 01:08:33.280 And there's absolutely nothing preventing us 01:08:33.280 --> 01:08:36.240 in the upcoming years we're working on the next budget. 01:08:36.240 --> 01:08:38.040 If we want to put a program like that in place, 01:08:38.040 --> 01:08:40.520 there's zero preventing us from doing that. 01:08:40.520 --> 01:08:42.720 It's going to have no material impact at all 01:08:42.720 --> 01:08:44.440 on Brian's recommendation. 01:08:44.440 --> 01:08:45.520 It's just going to be a, 01:08:45.520 --> 01:08:47.320 it would just be a separate program 01:08:47.320 --> 01:08:50.080 that you decide to offer if you choose to do that. 01:08:50.080 --> 01:08:52.120 So we'll do the research for you, 01:08:52.120 --> 01:08:54.360 bring that back to PUB and council, 01:08:54.360 --> 01:08:56.880 let you know what the rate impacts might be of that 01:08:56.880 --> 01:08:59.000 and move forward just like we would any other program. 01:08:59.000 --> 01:09:01.360 But I think staff's already committed to you today 01:09:01.360 --> 01:09:03.440 that they'll get that research done for you. 01:09:03.440 --> 01:09:04.720 - Okay, thank you very much. 01:09:04.720 --> 01:09:05.560 - Yep. 01:09:05.560 --> 01:09:07.400 - Charlie, I think you had a question, Charlie. 01:09:07.400 --> 01:09:08.240 - I did. 01:09:08.240 --> 01:09:11.400 First, a comment on Ed's points. 01:09:11.400 --> 01:09:16.400 I think the idea that if we could cut our food waste input 01:09:16.400 --> 01:09:18.560 into the landfill by half, 01:09:18.560 --> 01:09:20.280 that would have a material effect. 01:09:20.280 --> 01:09:22.480 So I think it's certainly something 01:09:22.480 --> 01:09:24.080 worth looking at and considering. 01:09:24.080 --> 01:09:26.440 So I agree with Ed on the idea 01:09:26.440 --> 01:09:29.360 of checking on that as an option. 01:09:29.360 --> 01:09:33.280 The other question I had related to Karen's question, 01:09:33.280 --> 01:09:38.120 slide seven, the landfill currently generates 01:09:38.120 --> 01:09:42.440 approximately 360,000 MCF. 01:09:42.440 --> 01:09:45.080 And my question was just to qualify, 01:09:45.080 --> 01:09:46.880 I think Karen's assumption was 01:09:46.880 --> 01:09:50.760 that it's either 359,000, 01:09:50.760 --> 01:09:55.760 it's either 359 MCF or it's 359 in MCF. 01:09:55.760 --> 01:09:59.080 Can somebody answer that one way or the other? 01:09:59.080 --> 01:10:00.400 I have the opposite assumption. 01:10:00.400 --> 01:10:02.320 That's why I was curious. 01:10:02.320 --> 01:10:07.320 Is it $600 or is it $600,000 worth of natural gas per year? 01:10:14.040 --> 01:10:19.040 - I believe that it's 360,000 cubic feet of landfill gas. 01:10:19.040 --> 01:10:24.640 - So it's a total of $600 worth of natural gas? 01:10:24.640 --> 01:10:31.440 - The gas is on the MMVTU standpoint. 01:10:31.440 --> 01:10:35.800 So it's a volume to a heat conversion 01:10:35.800 --> 01:10:37.400 that you'd have to go through. 01:10:37.400 --> 01:10:40.800 - So clarify one more time. 01:10:40.800 --> 01:10:45.280 Are we talking about $600 worth of natural gas 01:10:45.280 --> 01:10:49.000 or $600,000 worth of natural gas per year 01:10:49.000 --> 01:10:51.240 from the landfill per page seven? 01:10:51.240 --> 01:10:57.640 - I will have to come back and get that answer to you. 01:10:57.640 --> 01:10:58.480 Go back and look at that. 01:10:58.480 --> 01:11:00.200 - I don't think any information's in there 01:11:00.200 --> 01:11:03.880 if you're talking about mass versus energy. 01:11:03.880 --> 01:11:05.440 - Yeah, there's a converging. 01:11:11.800 --> 01:11:13.200 Russ and then Billy. 01:11:13.200 --> 01:11:17.680 - Hey, quick question, Brian. 01:11:17.680 --> 01:11:21.040 When you solicit requests or proposals 01:11:21.040 --> 01:11:25.160 from various third-party companies to do this, 01:11:25.160 --> 01:11:28.040 I would suggest that, well, first of all, 01:11:28.040 --> 01:11:31.000 I'm not that much aware of the physical equipment 01:11:31.000 --> 01:11:35.360 that's required to be in this enrichment facility, 01:11:35.360 --> 01:11:38.280 but I assume there's some kind of a compressor. 01:11:38.280 --> 01:11:40.280 Do you know, is that right? 01:11:41.440 --> 01:11:42.280 That has to compress this? 01:11:42.280 --> 01:11:44.160 - Yes, there would be some compression required. 01:11:44.160 --> 01:11:47.720 - Okay, just as, and knowing the proximity 01:11:47.720 --> 01:11:50.440 of some homes to the landfill, 01:11:50.440 --> 01:11:54.440 you might want to include in your request for proposal 01:11:54.440 --> 01:11:57.200 some kind of a limit on the noise 01:11:57.200 --> 01:12:00.360 that this thing is going to produce. 01:12:00.360 --> 01:12:03.680 Maybe measure so many decibels 100 feet away 01:12:03.680 --> 01:12:06.680 or 200 feet away or whatever it is because, 01:12:06.680 --> 01:12:11.160 and where it's sited could be important also. 01:12:11.160 --> 01:12:12.000 - Correct. 01:12:12.000 --> 01:12:16.920 - Just to make that suggestion to look at that 01:12:16.920 --> 01:12:19.720 and think about that when you're getting these proposals. 01:12:19.720 --> 01:12:22.160 - Yes. 01:12:22.160 --> 01:12:23.000 Thank you. 01:12:23.000 --> 01:12:24.400 - Billy. 01:12:24.400 --> 01:12:27.840 - Okay, mine was about the third-party agreement, too, 01:12:27.840 --> 01:12:29.800 which I'm a huge fan of. 01:12:29.800 --> 01:12:33.360 And I would assume you guys put this all together, 01:12:33.360 --> 01:12:36.000 but we've had third parties in our landfill 01:12:36.000 --> 01:12:37.360 before it hadn't worked out. 01:12:37.360 --> 01:12:39.320 So just want to make sure we've got some sort of agreements 01:12:39.320 --> 01:12:40.960 to take possession of equipment. 01:12:40.960 --> 01:12:47.840 In the event that they don't fulfill their agreement. 01:12:47.840 --> 01:12:51.500 - Thank you, Billy. 01:12:51.500 --> 01:12:54.520 I had that same concern down this road before. 01:12:54.520 --> 01:12:58.880 I'm assuming we've learned, so. 01:12:58.880 --> 01:12:59.720 - Absolutely. 01:12:59.720 --> 01:13:01.240 - Any other questions, comments? 01:13:01.240 --> 01:13:04.000 Go ahead, Karen. 01:13:04.000 --> 01:13:06.800 - Yeah, sorry, my computer blanked out 01:13:06.800 --> 01:13:08.200 while Charlie was talking. 01:13:08.200 --> 01:13:10.200 I don't think it was personal, Charlie. 01:13:10.200 --> 01:13:18.240 When I pay for my natural gas, I'm paying Atmos. 01:13:18.240 --> 01:13:20.600 I haven't heard their name mentioned. 01:13:20.600 --> 01:13:22.000 Are they involved in this in any way? 01:13:22.000 --> 01:13:24.440 Would these be separate pipes from theirs? 01:13:24.440 --> 01:13:28.840 - No, Atmos would be the transporter of the gas. 01:13:28.840 --> 01:13:33.640 So Atmos would be like the NTTA. 01:13:33.640 --> 01:13:36.200 They own the road, you pay them, 01:13:36.200 --> 01:13:38.560 but you don't buy your car from Atmos, so. 01:13:38.560 --> 01:13:42.720 - Oh, that was a nice way to put it. 01:13:42.720 --> 01:13:45.640 - Yeah, thank you. 01:13:45.640 --> 01:13:46.920 - I just want to clarify, 01:13:46.920 --> 01:13:51.920 even if we did a food composting program, 01:13:51.920 --> 01:13:54.800 which I'm actually in favor of, 01:13:54.800 --> 01:13:58.240 especially with a lot of waste coming out of restaurants, 01:13:58.240 --> 01:14:00.320 it's not going to change the fact 01:14:00.320 --> 01:14:03.920 that we're always going to have landfill gas to manage, 01:14:03.920 --> 01:14:04.760 correct? 01:14:04.760 --> 01:14:06.680 I mean, it might reduce in the future. 01:14:06.680 --> 01:14:07.680 - That is correct. 01:14:07.680 --> 01:14:09.920 - Okay, all right. 01:14:09.920 --> 01:14:11.880 That's the clarification I needed, 01:14:11.880 --> 01:14:14.200 is that this doesn't go away 01:14:14.200 --> 01:14:17.040 even if we add additional programs. 01:14:17.040 --> 01:14:19.480 - And as a point of clarification on slide seven, 01:14:19.480 --> 01:14:24.480 that is $360,000, so the end cost would be $600,000. 01:14:24.480 --> 01:14:29.320 - Thank you. 01:14:29.320 --> 01:14:30.320 - You're welcome. 01:14:30.320 --> 01:14:32.280 - All right. 01:14:32.280 --> 01:14:36.320 Consensus. 01:14:36.320 --> 01:14:38.720 I'm in favor of moving forward with this, 01:14:38.720 --> 01:14:42.600 understanding it will come back before us again. 01:14:42.600 --> 01:14:43.520 Russ? 01:14:43.520 --> 01:14:45.520 - I agree, I agree. 01:14:45.520 --> 01:14:46.360 Yes. 01:14:46.360 --> 01:14:47.180 - Barbara? 01:14:47.180 --> 01:14:48.020 - Yes. 01:14:48.020 --> 01:14:48.860 - Okay, okay. 01:14:48.860 --> 01:14:49.700 - And Susan, this is Tony. 01:14:49.700 --> 01:14:50.540 I just want to make sure, too, 01:14:50.540 --> 01:14:53.080 that the PV understands that part of the recommendation 01:14:53.080 --> 01:14:56.640 is that we would shut down the current generating facility 01:14:56.640 --> 01:14:59.040 and flare the gas in the interim. 01:14:59.040 --> 01:15:01.160 - And how long, what's the time period? 01:15:01.160 --> 01:15:03.720 That would be 18 months to three? 01:15:03.720 --> 01:15:05.920 - One and a half to three years, 01:15:05.920 --> 01:15:08.760 we would have that other facility in place. 01:15:08.760 --> 01:15:12.040 - And that puts how much into the air? 01:15:12.040 --> 01:15:14.560 It's the least. 01:15:14.560 --> 01:15:16.880 - Brian has that information. 01:15:16.880 --> 01:15:20.680 - Pull this back up. 01:15:20.680 --> 01:15:27.760 So if we go back into this slide here, 01:15:27.760 --> 01:15:31.920 again, it is better than running the engine 01:15:31.920 --> 01:15:33.080 during that time. 01:15:33.080 --> 01:15:39.120 So we would look at 45 tons of carbon monoxide, 01:15:39.120 --> 01:15:41.560 approximately eight tons of nitrogen dioxide 01:15:41.560 --> 01:15:44.920 and a 10th of a ton of the non-methane 01:15:44.920 --> 01:15:46.440 volatile organic chemicals. 01:15:46.440 --> 01:15:51.400 So again, it would be less impactful 01:15:51.400 --> 01:15:53.080 than running the engine during that time. 01:15:53.080 --> 01:15:54.400 - Okay, all right. 01:15:58.080 --> 01:16:01.000 (clears throat) 01:16:01.000 --> 01:16:02.960 I'll wait for you to take it back down. 01:16:02.960 --> 01:16:08.080 All right, that doesn't change for me at all. 01:16:08.080 --> 01:16:11.480 It's better than running the engine and losing money, too. 01:16:11.480 --> 01:16:13.600 Ed? 01:16:13.600 --> 01:16:18.760 - Yeah, I don't feel comfortable with being, 01:16:18.760 --> 01:16:21.040 saying, moving ahead. 01:16:21.040 --> 01:16:23.560 I think that I would want to see 01:16:23.560 --> 01:16:28.560 what the impact would be of a more robust composting program. 01:16:28.560 --> 01:16:32.200 - Okay. 01:16:32.200 --> 01:16:34.320 Charlie? 01:16:34.320 --> 01:16:37.800 - Well, I just want to say-- - I like the idea. 01:16:37.800 --> 01:16:39.240 - I thought you said Charlie, I'm sorry. 01:16:39.240 --> 01:16:40.760 - That's okay. (laughs) 01:16:40.760 --> 01:16:41.600 Go ahead, Charlie. 01:16:41.600 --> 01:16:45.400 - I like the idea and I'm in favor of moving ahead 01:16:45.400 --> 01:16:47.720 with staff's recommendations. 01:16:47.720 --> 01:16:50.200 I do think Ed has a good point, though, 01:16:50.200 --> 01:16:55.200 that if we were to convert half of that food waste 01:16:55.200 --> 01:17:00.600 into compost, we would not have to deal with that 01:17:00.600 --> 01:17:01.720 at the landfill. 01:17:01.720 --> 01:17:03.680 Now, I assume it would still happen 01:17:03.680 --> 01:17:05.680 during the composting process, 01:17:05.680 --> 01:17:08.560 but we would be generating something worthwhile. 01:17:08.560 --> 01:17:12.520 So I think we should look at the economics of that as well. 01:17:12.520 --> 01:17:14.880 - May I add something to what Charlie said? 01:17:14.880 --> 01:17:15.800 - Sure. - Composting, 01:17:15.800 --> 01:17:20.800 composting does not, just as a matter of clarification, 01:17:20.800 --> 01:17:23.360 composting does not create methane. 01:17:23.360 --> 01:17:25.800 - Okay, thank you. - Yeah. 01:17:25.800 --> 01:17:30.800 It's an anaerobic, absence of oxygen is what causes, 01:17:30.800 --> 01:17:32.920 from what I learned the other day. 01:17:32.920 --> 01:17:37.920 So methane is not produced by composting, thank you. 01:17:37.920 --> 01:17:43.680 - It can be odiferous around there, 01:17:43.680 --> 01:17:46.360 but yeah, it does not. 01:17:46.360 --> 01:17:48.320 Charlie, I mean, Billy. 01:17:48.320 --> 01:17:52.040 - Oh, I was gonna ask, as we can take five after this. 01:17:52.040 --> 01:17:52.880 - Oh, sure. 01:17:52.880 --> 01:17:56.640 And Karen, but are you in agreement, Billy? 01:17:56.640 --> 01:17:57.600 What's your opinion? 01:17:57.600 --> 01:18:01.720 - Yeah, five minutes is good. 01:18:01.720 --> 01:18:04.920 I just wanted to say I support the proposal. 01:18:04.920 --> 01:18:07.480 We're gonna have to do something with that gas 01:18:07.480 --> 01:18:09.280 and there will be gas no matter what. 01:18:09.280 --> 01:18:11.360 I'm very curious about Austin's program. 01:18:11.360 --> 01:18:14.120 My daughter was not impressed with it, 01:18:14.120 --> 01:18:17.320 but maybe that's just youthful idealism. 01:18:17.320 --> 01:18:21.280 She's, it was a sustainability major, UT, 01:18:21.280 --> 01:18:23.480 varying all that kind of stuff. 01:18:23.480 --> 01:18:25.760 Much smarter about it than I am. 01:18:25.760 --> 01:18:30.760 So I would be very interested in getting some comparisons 01:18:30.760 --> 01:18:34.360 with how Austin's established program 01:18:34.360 --> 01:18:37.480 for food-based composting has been working, 01:18:37.480 --> 01:18:40.720 especially in regards to their landfill, 01:18:40.720 --> 01:18:45.720 which is bigger than ours, I believe. 01:18:45.720 --> 01:18:49.760 But otherwise I support the program. 01:18:49.760 --> 01:18:55.160 - Well, Brian, I guess you've got your direction. 01:18:55.160 --> 01:18:57.840 - I do, and I appreciate the discussion this morning 01:18:57.840 --> 01:19:01.480 and the commitment to move forward. 01:19:01.480 --> 01:19:03.920 - All right. 01:19:03.920 --> 01:19:05.280 - Thank you. 01:19:05.280 --> 01:19:07.360 - So I guess we'll take a five minute break. 01:19:07.360 --> 01:19:10.800 It is now according to my clock 10.21, 01:19:10.800 --> 01:19:13.800 so we'll be back 10.25-ish. 01:19:13.800 --> 01:19:20.400 - All right, you're on. 01:19:20.400 --> 01:19:22.000 - All right, we are back on. 01:19:22.000 --> 01:19:23.280 We're still in work session. 01:19:23.280 --> 01:19:24.360 And after this item, 01:19:24.360 --> 01:19:27.560 I am going to be calling us back into open session 01:19:27.560 --> 01:19:30.800 and then asking for a adjournment into closed session. 01:19:30.800 --> 01:19:33.760 But right now we're on, receive a report, 01:19:33.760 --> 01:19:36.000 hold a discussion and give staff direction 01:19:36.000 --> 01:19:38.320 regarding water, wastewater, drainage, 01:19:38.320 --> 01:19:41.040 and electric capital improvement program. 01:19:41.040 --> 01:19:42.640 - Good morning, PUB members, Chair, 01:19:42.640 --> 01:19:44.760 and Nick Vinson, Assistant Director of Finance. 01:19:44.760 --> 01:19:46.760 I'm happy to be in front of you today. 01:19:46.760 --> 01:19:49.000 We have three presentations to review 01:19:49.000 --> 01:19:51.080 the detailed utility projects with you. 01:19:51.080 --> 01:19:51.920 I know this is something 01:19:51.920 --> 01:19:53.200 the Public Utility Board requested 01:19:53.200 --> 01:19:55.120 during the budgeting process. 01:19:55.120 --> 01:19:56.200 So we felt like it was appropriate 01:19:56.200 --> 01:19:58.920 to bring back that discussion with you. 01:19:58.920 --> 01:20:00.200 Really quick, before we get started, 01:20:00.200 --> 01:20:01.240 I want to start the framework 01:20:01.240 --> 01:20:03.360 or what the presentations will talk about. 01:20:03.360 --> 01:20:04.400 And each of the presentations 01:20:04.400 --> 01:20:05.960 will have a detailed discussion. 01:20:05.960 --> 01:20:08.120 regarding the utility projects. 01:20:08.120 --> 01:20:10.000 And the presentations actually do not get 01:20:10.000 --> 01:20:12.400 into a great level of detail regarding those projects 01:20:12.400 --> 01:20:15.160 that are city-wide, those larger projects. 01:20:15.160 --> 01:20:17.120 So as one's a multiple department 01:20:17.120 --> 01:20:19.440 is being involved in those projects. 01:20:19.440 --> 01:20:21.160 We do have Becky Devaney on the phone today. 01:20:21.160 --> 01:20:22.040 If there's any questions, 01:20:22.040 --> 01:20:23.080 she'll be happy to address them. 01:20:23.080 --> 01:20:25.400 If you have questions regarding those city-wide projects 01:20:25.400 --> 01:20:26.600 that she can address, 01:20:26.600 --> 01:20:29.280 otherwise we'll walk through the utility projects. 01:20:29.280 --> 01:20:30.560 And then Susan, if it's okay, 01:20:30.560 --> 01:20:31.880 I'll go through the presentations. 01:20:31.880 --> 01:20:33.480 If there's any operational questions, 01:20:33.480 --> 01:20:35.160 if we can wait until the end, 01:20:35.160 --> 01:20:36.320 I can turn it over to the directors 01:20:36.320 --> 01:20:38.120 and they can address those questions. 01:20:38.120 --> 01:20:44.400 All right. 01:20:44.400 --> 01:20:50.480 So we'll start with water. 01:20:50.480 --> 01:20:51.480 Really quick, what I'll do 01:20:51.480 --> 01:20:53.320 is walk you through an overview of the presentation. 01:20:53.320 --> 01:20:55.800 This is consistent for each of the utilities, 01:20:55.800 --> 01:20:58.560 but really we'll look at the project execution 01:20:58.560 --> 01:21:01.400 and management, how the process previously was, 01:21:01.400 --> 01:21:03.600 how it is now, and then what improvements 01:21:03.600 --> 01:21:05.640 have been put in place by staff. 01:21:05.640 --> 01:21:08.200 After that, we will look at 31 of 56 projects. 01:21:08.200 --> 01:21:09.240 So in your backup material, 01:21:09.240 --> 01:21:10.920 you should have got a detailed project list 01:21:10.920 --> 01:21:13.040 of all the active projects in water. 01:21:13.040 --> 01:21:14.160 The presentation in front of you 01:21:14.160 --> 01:21:16.280 will cover 31 of those projects. 01:21:16.280 --> 01:21:18.120 We'll not discuss every one of those 31s. 01:21:18.120 --> 01:21:19.200 They are listed on the slide, 01:21:19.200 --> 01:21:21.320 but we'll discuss a portion of them. 01:21:21.320 --> 01:21:22.920 So I'll go through those with you. 01:21:22.920 --> 01:21:26.240 For presentation purposes 01:21:26.240 --> 01:21:27.560 and be consistent with the budget, 01:21:27.560 --> 01:21:28.680 we have grouped these projects 01:21:28.680 --> 01:21:30.800 into five different categories. 01:21:30.800 --> 01:21:33.040 The first one being plant CIP improvements, 01:21:33.040 --> 01:21:35.360 the second one being field service replacements. 01:21:35.360 --> 01:21:37.040 The next one being your service projects, 01:21:37.040 --> 01:21:39.280 for example, which is professional services. 01:21:39.280 --> 01:21:41.360 And then we have some state highway relocations. 01:21:41.360 --> 01:21:43.560 And then we'll talk about those future projects 01:21:43.560 --> 01:21:44.800 that were included in the budget. 01:21:44.800 --> 01:21:46.960 And we will be bringing those discussions back to you 01:21:46.960 --> 01:21:47.800 in the near future. 01:21:47.800 --> 01:21:50.480 So we'll get into that discussion also. 01:21:50.480 --> 01:21:52.800 So really quick, we wanna review the previous process 01:21:52.800 --> 01:21:55.320 that was in place from 2015 to 2017, 01:21:55.320 --> 01:21:57.960 basically prior to 2017. 01:21:57.960 --> 01:21:59.760 Project planning and delivery. 01:21:59.760 --> 01:22:02.760 There was a lack of project prioritization. 01:22:02.760 --> 01:22:05.240 There was a focus on short-term cost savings. 01:22:05.240 --> 01:22:07.320 And then there was poor project execution. 01:22:07.320 --> 01:22:09.520 So really none of those major projects getting completed. 01:22:09.520 --> 01:22:11.680 And I'll show that to you on the next slide. 01:22:11.680 --> 01:22:13.920 There were silos that existed within the organization, 01:22:13.920 --> 01:22:16.040 which minimal coordination between departments. 01:22:16.040 --> 01:22:17.920 And that has since been, 01:22:17.920 --> 01:22:19.480 those silos have been broken down. 01:22:19.480 --> 01:22:22.600 Departments are talking to each other now, which is great. 01:22:22.600 --> 01:22:23.920 And then for the water utility, 01:22:23.920 --> 01:22:25.480 there are three main projects 01:22:25.480 --> 01:22:27.360 that we wanted to communicate 01:22:27.360 --> 01:22:30.920 that have been moved along here recently 01:22:30.920 --> 01:22:33.280 that were previously on hold was the North-South 01:22:33.280 --> 01:22:34.880 water transmission line, 01:22:34.880 --> 01:22:36.920 the Aldridge-John Payne transmission line, 01:22:36.920 --> 01:22:38.640 and then Elm and Locust phase two. 01:22:38.640 --> 01:22:42.840 And then post 2017, we have had decreased design 01:22:42.840 --> 01:22:44.400 and construction delays, 01:22:44.400 --> 01:22:47.160 and our continuous focus on cost containment transparency 01:22:47.160 --> 01:22:48.880 and emphasis on the city's core values. 01:22:48.880 --> 01:22:50.600 And that was something discussed with the public utility 01:22:50.600 --> 01:22:53.880 board and city council during the budgeting process. 01:22:53.880 --> 01:22:55.400 So really when we're looking at a project 01:22:55.400 --> 01:22:57.200 and looking at how we wanted to communicate this 01:22:57.200 --> 01:22:58.320 to the public utility board, 01:22:58.320 --> 01:23:00.640 we started looking at project activity. 01:23:00.640 --> 01:23:02.280 How much money has been spent 01:23:02.280 --> 01:23:03.600 or encumbered on these projects? 01:23:03.600 --> 01:23:06.640 And really, project movement is one thing 01:23:06.640 --> 01:23:08.800 we've been looking at in the finance department. 01:23:08.800 --> 01:23:11.360 So we put this table together for you. 01:23:11.360 --> 01:23:13.080 There were a couple of major projects 01:23:13.080 --> 01:23:16.920 that make up a big large portion of this increase 01:23:16.920 --> 01:23:17.760 that I'll review with you. 01:23:17.760 --> 01:23:19.040 The first one being the Lake Louisville 01:23:19.040 --> 01:23:21.720 water treatment plan upgrade and solids handling. 01:23:21.720 --> 01:23:23.560 The next one being the North-South water main. 01:23:23.560 --> 01:23:26.440 And the third one being that Aldridge-John Payne 01:23:26.440 --> 01:23:27.720 that I mentioned to you. 01:23:27.720 --> 01:23:30.000 So in 2017, you can see the year to date activity 01:23:30.000 --> 01:23:32.120 of $186 million. 01:23:32.120 --> 01:23:35.480 In 1920, this actually increased to 258 million. 01:23:35.480 --> 01:23:38.440 So you can see that increase about 72 million. 01:23:38.440 --> 01:23:42.000 So really showing, since 2017, post that time period, 01:23:42.000 --> 01:23:43.680 when we broke those silos down, 01:23:43.680 --> 01:23:46.640 we really started communicating between departments, 01:23:46.640 --> 01:23:50.080 really started to focus on project execution 01:23:50.080 --> 01:23:51.400 and getting those projects completed, 01:23:51.400 --> 01:23:54.080 really increased that project activity. 01:23:54.080 --> 01:23:56.360 So I wanted to point this out to the public utility board, 01:23:56.360 --> 01:23:58.760 setting the stage for the discussion today, 01:23:58.760 --> 01:24:01.960 and then what's to come for the other utilities. 01:24:01.960 --> 01:24:05.400 And as I'd mentioned on the previous slide, 01:24:05.400 --> 01:24:06.800 minimize this up here, 01:24:06.800 --> 01:24:08.200 we have five main categories 01:24:08.200 --> 01:24:09.920 that the water utility projects are grouped in. 01:24:09.920 --> 01:24:12.720 The first one being your plant CIMB improvements. 01:24:12.720 --> 01:24:15.200 The next one being field service replacements, 01:24:15.200 --> 01:24:17.800 service projects, special professional services, 01:24:17.800 --> 01:24:21.440 state highway relocations, and your future projects. 01:24:21.440 --> 01:24:24.040 So those ones included in the budget 01:24:24.040 --> 01:24:25.720 and then those discussions I'll be coming back to 01:24:25.720 --> 01:24:26.800 in the near future. 01:24:28.320 --> 01:24:29.600 So this is the template we've came up 01:24:29.600 --> 01:24:30.640 with the public utility board. 01:24:30.640 --> 01:24:33.280 This template has been shown to city council in the past. 01:24:33.280 --> 01:24:34.240 We've changed a little bit. 01:24:34.240 --> 01:24:35.520 So I'm gonna walk you through the table 01:24:35.520 --> 01:24:36.960 just to make sure we have the basis 01:24:36.960 --> 01:24:38.920 of what the discussion will be based on. 01:24:38.920 --> 01:24:41.360 And then we'll proceed to the project descriptions. 01:24:41.360 --> 01:24:43.480 So the left-hand side, you can see the project name 01:24:43.480 --> 01:24:45.560 of each of the projects that'll be discussed. 01:24:45.560 --> 01:24:48.040 And these are plant and CIP improvement projects 01:24:48.040 --> 01:24:49.760 in the water utility. 01:24:49.760 --> 01:24:52.680 We do have this indicator dot, it's currently green. 01:24:52.680 --> 01:24:55.000 We do use this to look at the schedule of projects. 01:24:55.000 --> 01:24:56.720 You can see down here at the bottom, 01:24:56.720 --> 01:24:59.840 green meaning on target, yellow meaning risk and opportunity, 01:24:59.840 --> 01:25:04.400 red mean off target, and then a gray color just meaning NA. 01:25:04.400 --> 01:25:06.480 And then we have our estimated completion date. 01:25:06.480 --> 01:25:08.320 We do currently show this as a month and a year. 01:25:08.320 --> 01:25:10.840 Moving forward, this may change to a quarterly number, 01:25:10.840 --> 01:25:12.280 but currently we have it on monthly. 01:25:12.280 --> 01:25:13.920 So September, 2020, for example, 01:25:13.920 --> 01:25:15.800 this project is scheduled to be completed. 01:25:15.800 --> 01:25:18.320 So at the end of this month, it is coming up. 01:25:18.320 --> 01:25:20.360 EAC, which is the estimated at completion. 01:25:20.360 --> 01:25:21.400 You can see that amount here. 01:25:21.400 --> 01:25:24.240 So what is that project gonna cost when it's constructed? 01:25:24.240 --> 01:25:25.400 What the current budget is, 01:25:25.400 --> 01:25:29.160 what's currently allocated to this project, the $440,000. 01:25:29.160 --> 01:25:30.520 And then if there's any future funding, 01:25:30.520 --> 01:25:33.000 we've shown you your '21 and '22 on this slide 01:25:33.000 --> 01:25:34.960 to identify some future funding on some projects 01:25:34.960 --> 01:25:36.320 that are listed here below. 01:25:36.320 --> 01:25:37.280 And then the revised total, 01:25:37.280 --> 01:25:40.240 you can see right here to the far right-hand side. 01:25:40.240 --> 01:25:44.120 So really quick, for plant improvements and CIP improvements, 01:25:44.120 --> 01:25:44.960 I wanted to walk you through 01:25:44.960 --> 01:25:47.280 the Lake Louisville Water Treatment Plant, 01:25:47.280 --> 01:25:51.040 also abbreviated as LLWTP upgrades. 01:25:51.040 --> 01:25:53.360 This is upgrades to the Lake Ray Roberts facility, 01:25:53.360 --> 01:25:55.840 including zebra mussel control. 01:25:55.840 --> 01:25:59.080 And this project is scheduled for completion in 2021. 01:25:59.080 --> 01:26:00.000 And then the second project 01:26:00.000 --> 01:26:01.080 really wanna bring to your attention 01:26:01.080 --> 01:26:03.000 is the Lake Louisville solids handling. 01:26:03.000 --> 01:26:05.120 So something we've talked about in the budgeting process 01:26:05.120 --> 01:26:07.240 before that you can see the construction 01:26:07.240 --> 01:26:10.760 of new residual sludge dewatering facility. 01:26:10.760 --> 01:26:11.800 And this project is scheduled 01:26:11.800 --> 01:26:13.920 for completion to April, 2021. 01:26:13.920 --> 01:26:16.200 Couple of things on the side. 01:26:16.200 --> 01:26:17.040 So you can see up here, 01:26:17.040 --> 01:26:18.880 the regulatory performance upgrades. 01:26:18.880 --> 01:26:20.920 It does have an asterisk next to it. 01:26:20.920 --> 01:26:24.200 This does indicate this project is impact fee eligible. 01:26:24.200 --> 01:26:26.280 So this is a growth capacity project. 01:26:26.280 --> 01:26:28.520 So we can use those impact fee revenue dollars 01:26:28.520 --> 01:26:31.040 that are coming in to fund this project. 01:26:31.040 --> 01:26:33.080 This is one we discussed with the Public Utility Board 01:26:33.080 --> 01:26:36.320 of having $18 million in funding in 2021. 01:26:36.320 --> 01:26:37.800 And this was the project that enabled us 01:26:37.800 --> 01:26:40.560 to push that Lake Ray Roberts expansion out, 01:26:40.560 --> 01:26:43.080 the upgrades to that facility design in '24 01:26:43.080 --> 01:26:45.440 and the construction in '25. 01:26:45.440 --> 01:26:47.000 So that is a great project. 01:26:47.000 --> 01:26:49.560 Field service replacements. 01:26:49.560 --> 01:26:51.080 There are several of these projects. 01:26:51.080 --> 01:26:53.280 I think there's roughly 10 on this slide. 01:26:53.280 --> 01:26:55.560 There is another slide that will address these also. 01:26:55.560 --> 01:26:57.640 And what this is, this is simply replacement 01:26:57.640 --> 01:26:59.600 of existing infrastructure in the city. 01:26:59.600 --> 01:27:01.240 So infrastructure that's been put in place 01:27:01.240 --> 01:27:03.040 several years ago that the department 01:27:03.040 --> 01:27:05.760 is deemed to be needing to be replaced, 01:27:05.760 --> 01:27:08.720 maybe because of breaks or just aging infrastructure. 01:27:08.720 --> 01:27:11.640 So you can see same table format 01:27:11.640 --> 01:27:13.560 as we had on the previous slide. 01:27:13.560 --> 01:27:14.960 We do have a couple of these. 01:27:14.960 --> 01:27:17.640 You can see field service replacement for the ore water. 01:27:17.640 --> 01:27:19.840 This is water main replacement project is approximately 01:27:19.840 --> 01:27:22.600 800 feet from Bolivar Street to Locust. 01:27:22.600 --> 01:27:24.600 This project construction has been completed 01:27:24.600 --> 01:27:27.680 and we're currently going through the closeout phase, 01:27:27.680 --> 01:27:30.040 which is scheduled to wrap up at the end of this month. 01:27:30.040 --> 01:27:33.160 Avenue B water, which is water main replacement project, 01:27:33.160 --> 01:27:35.800 approximately 1200 feet from Eagle to Underwood. 01:27:35.800 --> 01:27:39.280 This project is scheduled for completion in September, 2020. 01:27:39.280 --> 01:27:41.120 And then when I get to the future project slide 01:27:41.120 --> 01:27:43.440 and it was talked, we actually talked to you about it 01:27:43.440 --> 01:27:45.080 during the budgeting process. 01:27:45.080 --> 01:27:47.720 And I may mention this before all field service replacements 01:27:47.720 --> 01:27:50.360 in the water utility or revenue funded. 01:27:50.360 --> 01:27:51.520 So we're actually not debt funding 01:27:51.520 --> 01:27:52.680 that replacement infrastructure, 01:27:52.680 --> 01:27:55.400 we're actually revenue funding that replacement. 01:27:55.400 --> 01:27:58.880 So there's a positive thing for this utility. 01:27:58.880 --> 01:28:01.720 This is the field service replacement projects continued. 01:28:01.720 --> 01:28:03.800 About 10 projects in this slide also. 01:28:03.800 --> 01:28:06.320 A couple of the ones we're gonna talk to you about 01:28:06.320 --> 01:28:09.680 is Foxcroft and this is the water main replacement project 01:28:09.680 --> 01:28:12.840 approximately 3000 feet from Emerson to Old North. 01:28:12.840 --> 01:28:14.400 And this project is scheduled for completion 01:28:14.400 --> 01:28:16.760 in January of 2021. 01:28:16.760 --> 01:28:19.120 But then the next one is precision water line project. 01:28:19.120 --> 01:28:20.560 This is the water main replacement project 01:28:20.560 --> 01:28:24.600 of approximately 1500 feet from Airport to Die Street. 01:28:24.600 --> 01:28:27.960 So we can give additional detail on these projects. 01:28:27.960 --> 01:28:30.240 Definitely if it's something you'd like to hear, 01:28:30.240 --> 01:28:32.640 Preetem is present, the assistant director 01:28:32.640 --> 01:28:34.960 for water and wastewater that can address these 01:28:34.960 --> 01:28:36.080 at the end of their presentation 01:28:36.080 --> 01:28:39.560 if you have any specific questions regarding those. 01:28:39.560 --> 01:28:41.240 And the next ones are the service projects. 01:28:41.240 --> 01:28:43.600 So those consultants or those professional services 01:28:43.600 --> 01:28:45.120 that we have open that we're currently working 01:28:45.120 --> 01:28:46.560 on the water utility. 01:28:46.560 --> 01:28:47.880 The first one being the Lake Louisville 01:28:47.880 --> 01:28:49.840 transmission pipeline assessment. 01:28:49.840 --> 01:28:52.200 And this is an important project for the water utility. 01:28:52.200 --> 01:28:55.880 So it's a condition assessment of a 20 inch water line. 01:28:55.880 --> 01:28:59.080 This project is scheduled completion is September 2021. 01:28:59.080 --> 01:29:00.880 So basically a year from today. 01:29:00.880 --> 01:29:03.480 On the next one being the risk assessment 01:29:03.480 --> 01:29:05.080 energy response plan. 01:29:05.080 --> 01:29:08.400 And this is preparation of a risk and resiliency study 01:29:08.400 --> 01:29:11.240 and emergency response plan for the water utility. 01:29:11.240 --> 01:29:12.640 We did wanna bring this to your attention. 01:29:12.640 --> 01:29:14.240 I think this is something the public utility board 01:29:14.240 --> 01:29:16.720 brought up in the budgeting process of being a priority. 01:29:16.720 --> 01:29:20.840 So we do have a project open for that as recently completed. 01:29:20.840 --> 01:29:23.720 Text on I-35 relocation. 01:29:23.720 --> 01:29:25.120 We did wanna show this project to you. 01:29:25.120 --> 01:29:29.040 This exists in the water and wastewater utility both. 01:29:29.040 --> 01:29:31.200 So you can see this is relocation of utilities 01:29:31.200 --> 01:29:33.800 that run next to I-35. 01:29:33.800 --> 01:29:38.720 It is part of the expansion project of that construction. 01:29:38.720 --> 01:29:41.120 EAC is currently 12.7 million. 01:29:41.120 --> 01:29:43.520 We do currently have a budget of 2.7 01:29:43.520 --> 01:29:46.320 a planned additional funding of 8.2. 01:29:46.320 --> 01:29:48.600 And a little bit coming from other sources 01:29:48.600 --> 01:29:49.960 to make that project whole. 01:29:49.960 --> 01:29:53.440 So future project summary. 01:29:53.440 --> 01:29:55.840 This is something we showed to you in the budgeting process 01:29:55.840 --> 01:29:57.680 but I wanted to bring it back forward to you. 01:29:57.680 --> 01:29:59.880 We did add an additional column out here. 01:29:59.880 --> 01:30:02.400 So the entire CIP that you approved 01:30:02.400 --> 01:30:04.960 and the city council adopted on September 22nd 01:30:04.960 --> 01:30:08.640 included $51.8 million in water projects. 01:30:08.640 --> 01:30:12.200 And this table below summarizes 46.2. 01:30:12.200 --> 01:30:14.200 It really gave you the status of how those projects 01:30:14.200 --> 01:30:16.440 fit into this plan that I've been presenting to you 01:30:16.440 --> 01:30:18.200 on the previous couple of slides. 01:30:18.200 --> 01:30:19.480 So the first one being the regulatory 01:30:19.480 --> 01:30:21.280 and performance upgrades of 18 million. 01:30:21.280 --> 01:30:23.360 That's that project I talked about with you. 01:30:23.360 --> 01:30:24.760 And this was an existing project. 01:30:24.760 --> 01:30:27.240 So this is in funding enhancement to that project. 01:30:27.240 --> 01:30:28.440 We won't have to set up a new one. 01:30:28.440 --> 01:30:30.160 This one is already open. 01:30:30.160 --> 01:30:32.160 The next one being the Northwest transmission lines 01:30:32.160 --> 01:30:34.800 and booster pump station, 3.35 million. 01:30:34.800 --> 01:30:37.120 This is an existing project also. 01:30:37.120 --> 01:30:39.360 I mean, you can see that text.R35 relocations 01:30:39.360 --> 01:30:41.840 we just reviewed at 10.9. 01:30:41.840 --> 01:30:43.800 Elmond Locust, which is an existing project 01:30:43.800 --> 01:30:45.400 of 4 million funding. 01:30:45.400 --> 01:30:47.040 And then lastly, I wanted to point these out to you. 01:30:47.040 --> 01:30:50.560 This is that annual field service replacement number of 2.7. 01:30:50.560 --> 01:30:53.800 So when you see those field service replacement projects, 01:30:53.800 --> 01:30:56.040 this is where that funding comes from. 01:30:56.040 --> 01:30:58.800 We do plan to bring back a detailed discussion to you 01:30:58.800 --> 01:31:02.240 in January of 2021 to go over a detailed list 01:31:02.240 --> 01:31:05.800 once we have it finalized and what individual streets 01:31:05.800 --> 01:31:08.400 is made up of the 2.7 million. 01:31:08.400 --> 01:31:09.800 And then finally, we have some contracted 01:31:09.800 --> 01:31:12.720 field service replacements for the 2020 bundle. 01:31:12.720 --> 01:31:15.240 And then we had that bond election of 2019, 01:31:15.240 --> 01:31:18.280 which those discussions will come back to you 01:31:18.280 --> 01:31:20.160 in the spring of 2021. 01:31:20.160 --> 01:31:23.880 And then those next discussions, 01:31:23.880 --> 01:31:25.320 as we said during the budgeting process, 01:31:25.320 --> 01:31:27.480 we do plan to circle back with you in December. 01:31:27.480 --> 01:31:30.240 We are somewhat limited on budget or meetings 01:31:30.240 --> 01:31:32.680 in November and December with the holidays coming up, 01:31:32.680 --> 01:31:34.320 but we do plan to bring that back to you, 01:31:34.320 --> 01:31:37.000 the budget discussion and the rate discussion as promised 01:31:37.000 --> 01:31:39.400 in December during that one meeting that you have. 01:31:39.400 --> 01:31:41.520 And then coming back to you in January 2021 01:31:41.520 --> 01:31:43.640 with a quarterly financial project update. 01:31:43.640 --> 01:31:45.440 This is something that staff plans to come back 01:31:45.440 --> 01:31:47.280 to the public utility board on quarterly basis 01:31:47.280 --> 01:31:49.920 to keep you updated about these projects. 01:31:49.920 --> 01:31:51.800 So we're happy to have this format together 01:31:51.800 --> 01:31:53.120 and happy to get your feedback today. 01:31:53.120 --> 01:31:55.520 So we wanted to get it in front of you. 01:31:55.520 --> 01:31:57.680 With that, that concludes the presentation, Susan. 01:31:57.680 --> 01:31:59.360 I'll pull it down for questions. 01:32:00.760 --> 01:32:04.680 - All right, Barbara has her hand up. 01:32:04.680 --> 01:32:05.880 Go ahead. 01:32:05.880 --> 01:32:08.800 - I just wanted to ask you about on slide eight, 01:32:08.800 --> 01:32:12.880 you've got a project there on Amherst 01:32:12.880 --> 01:32:14.960 that I drive down frequently. 01:32:14.960 --> 01:32:18.960 And it's due to be done in May, 2021. 01:32:18.960 --> 01:32:26.480 You finished out Hinkle and Amherst some time ago 01:32:26.480 --> 01:32:28.680 and it took a while. 01:32:28.680 --> 01:32:32.800 But I wanted to ask you about Amherst has finished 01:32:32.800 --> 01:32:36.040 and now there's heavy equipment sitting on the streets 01:32:36.040 --> 01:32:38.360 and the people were told over there 01:32:38.360 --> 01:32:40.080 that they were going to have to tear it up 01:32:40.080 --> 01:32:42.800 and put water lines there. 01:32:42.800 --> 01:32:47.800 And that street's just been done fairly recently. 01:32:47.800 --> 01:32:50.640 And I thought we'd gotten away from doing the streets 01:32:50.640 --> 01:32:53.040 and then tearing them up into the water lines. 01:32:53.040 --> 01:32:55.440 - Ms. Bressel, that's a great question. 01:32:55.440 --> 01:32:57.200 And Susan, what I'll do is I'll turn it over to Preet 01:32:57.200 --> 01:32:59.720 Tim to address the operational questions really quick 01:32:59.720 --> 01:33:01.280 and he can answer that question. 01:33:01.280 --> 01:33:08.560 - Good morning, Preet Tim Deshmukh, 01:33:08.560 --> 01:33:11.240 Deputy Director of Water Utilities. 01:33:11.240 --> 01:33:13.400 To address your question, yes, 01:33:13.400 --> 01:33:17.720 we're coordinating closely with the streets department 01:33:17.720 --> 01:33:19.080 and we're working with them. 01:33:19.080 --> 01:33:23.000 If situations like these do happen 01:33:23.000 --> 01:33:25.440 where a street has gone in a couple of years earlier, 01:33:25.440 --> 01:33:26.560 three or four years early, 01:33:26.560 --> 01:33:29.120 we do work with them. 01:33:29.120 --> 01:33:33.240 We will reassess what the water line conditions are 01:33:33.240 --> 01:33:35.840 and look at this project if that's the case. 01:33:35.840 --> 01:33:40.840 But definitely we intend to not be in the neighborhoods 01:33:40.840 --> 01:33:43.600 over and over and moving forward, 01:33:43.600 --> 01:33:46.440 we're working with streets department 01:33:46.440 --> 01:33:49.520 as mentioned in the presentation of breaking down silos. 01:33:49.520 --> 01:33:52.600 So definitely we'll reassess this project. 01:33:54.160 --> 01:33:58.080 Well, I thought we'd done a pretty good job of following 01:33:58.080 --> 01:34:01.840 along doing the water lines and then the street. 01:34:01.840 --> 01:34:06.840 And then this one pops up and I'm thinking this, 01:34:06.840 --> 01:34:09.560 right now I'm struggling to get into my neighborhood. 01:34:09.560 --> 01:34:13.320 It's going to be better and I understand that very well, 01:34:13.320 --> 01:34:18.320 but now there's, well, Amherst was just one 01:34:18.320 --> 01:34:21.880 I have a particular knowledge about, so thank you. 01:34:23.600 --> 01:34:27.080 - Is there another hand, Charlie? 01:34:27.080 --> 01:34:30.920 - Quick question regarding, I think it's page four, 01:34:30.920 --> 01:34:34.240 the slide titled water project execution 01:34:34.240 --> 01:34:35.920 and management continued. 01:34:35.920 --> 01:34:41.280 And I'm a little concerned by the project activity 01:34:41.280 --> 01:34:46.280 by year 2019 and 20, you showed $258 million. 01:34:46.280 --> 01:34:52.080 If I divide that by 130,000 people in the city, 01:34:52.080 --> 01:34:56.760 I get $1,984 per person. 01:34:56.760 --> 01:35:00.480 Can you tell me what you mean by project activity? 01:35:00.480 --> 01:35:05.480 And that's a pretty staggering dollar. 01:35:05.480 --> 01:35:08.160 - That's a great question. 01:35:08.160 --> 01:35:11.680 And I can even pull that up for the P even visually quick. 01:35:11.680 --> 01:35:12.520 Hang on just a second, 01:35:12.520 --> 01:35:14.360 because this is consistent across the utilities. 01:35:14.360 --> 01:35:15.720 So it's a great question. 01:35:15.720 --> 01:35:19.080 What this is, this is life to date. 01:35:19.080 --> 01:35:21.680 So this actually doesn't represent a spin. 01:35:21.680 --> 01:35:25.920 What this is, is this 186 million and this 258 million 01:35:25.920 --> 01:35:28.920 is expenses and encumbrances for all projects 01:35:28.920 --> 01:35:31.680 in the water utility life today. 01:35:31.680 --> 01:35:33.560 So this doesn't mean, for example, 01:35:33.560 --> 01:35:37.360 we spent 258 million in fiscal year, 1920. 01:35:37.360 --> 01:35:40.400 It does mean, however, that from 1819, 01:35:40.400 --> 01:35:44.080 we had 221 million in expenses and encumbrances. 01:35:44.080 --> 01:35:47.200 That number did increase to 258 in 1920. 01:35:47.200 --> 01:35:50.080 So some of these major projects are the ones 01:35:50.080 --> 01:35:53.080 that accounted for that large increase 01:35:53.080 --> 01:35:54.160 that you're seeing there, 01:35:54.160 --> 01:35:56.200 which is the Lake Louisville Water Treatment Plate upgrade 01:35:56.200 --> 01:35:59.080 and solids handling and at North South Water Main, 01:35:59.080 --> 01:36:01.600 which was a significant project. 01:36:01.600 --> 01:36:02.800 So hopefully it answers your question. 01:36:02.800 --> 01:36:04.320 The large increase was here, 01:36:04.320 --> 01:36:06.240 was mostly attributed to these projects. 01:36:06.240 --> 01:36:10.280 However, the total amount that you see is life to date 01:36:10.280 --> 01:36:12.320 for the water utility. 01:36:12.320 --> 01:36:15.160 Mr. Parker, does that answer your question? 01:36:15.160 --> 01:36:16.000 - It does. 01:36:16.000 --> 01:36:21.000 Yes, the difference is 258 minus 221, 37 million dollars 01:36:21.000 --> 01:36:23.320 in new spending. 01:36:23.320 --> 01:36:24.160 - That is correct. 01:36:24.160 --> 01:36:25.000 Yes, sir. 01:36:25.000 --> 01:36:26.560 That's new spending or new money that's been encumbered 01:36:26.560 --> 01:36:28.760 as those projects continue to be executed. 01:36:28.760 --> 01:36:32.320 So it would be the variance. 01:36:32.320 --> 01:36:37.320 - So if we divide that 36 million by 130,000 people, 01:36:37.320 --> 01:36:43.640 we spent $284 per person last year on water. 01:36:45.760 --> 01:36:47.240 I don't have the math in front of me, Mr. Parker, 01:36:47.240 --> 01:36:48.200 but that's the way it comes out. 01:36:48.200 --> 01:36:49.040 Absolutely. 01:36:49.040 --> 01:36:49.880 That is correct. 01:36:49.880 --> 01:36:51.800 And that'd be attributed to some of those large projects, 01:36:51.800 --> 01:36:53.560 those infrastructure projects that are out there 01:36:53.560 --> 01:36:55.480 that are 10 plus million dollars. 01:36:55.480 --> 01:36:56.880 Absolutely. 01:36:56.880 --> 01:36:57.820 - Okay. Thanks. 01:36:57.820 --> 01:37:00.380 - Other questions? 01:37:00.380 --> 01:37:02.600 All right. 01:37:02.600 --> 01:37:03.880 - Okay. 01:37:03.880 --> 01:37:06.080 And Susan, I will pull up wastewater really quick 01:37:06.080 --> 01:37:08.680 if no one else has any questions for water. 01:37:08.680 --> 01:37:12.800 Same thing here. 01:37:12.800 --> 01:37:13.640 We'll get through it. 01:37:13.640 --> 01:37:14.800 If you have any operational questions, 01:37:14.800 --> 01:37:16.360 pretend we'll come back up and address them. 01:37:16.360 --> 01:37:17.560 If there's something to do with the plant, 01:37:17.560 --> 01:37:20.040 Frank is on the phone that can address them also. 01:37:20.040 --> 01:37:22.480 Also, Kenny Banks is available. 01:37:22.480 --> 01:37:24.840 So I won't go through this every bullet point 01:37:24.840 --> 01:37:25.720 like I did in water, 01:37:25.720 --> 01:37:27.680 but really the project categories, 01:37:27.680 --> 01:37:30.040 we will look at 30 of 74 projects 01:37:30.040 --> 01:37:34.000 that were provided to you in your backup material. 01:37:34.000 --> 01:37:36.440 Those main categories are plant and CIP improvements, 01:37:36.440 --> 01:37:37.920 field service replacements, 01:37:37.920 --> 01:37:40.040 service projects with professional services, 01:37:40.040 --> 01:37:41.560 your state highway relocations, 01:37:41.560 --> 01:37:44.280 and your future projects in your next steps. 01:37:44.280 --> 01:37:46.440 So consistent with the water presentation. 01:37:46.440 --> 01:37:48.400 And one thing we're trying to do 01:37:48.400 --> 01:37:50.120 just for everybody's information 01:37:50.120 --> 01:37:52.400 is really keep this presentation template consistent 01:37:52.400 --> 01:37:54.360 for the utilities moving forward. 01:37:54.360 --> 01:37:56.080 So any feedback you have for us is great. 01:37:56.080 --> 01:37:58.200 And this is the previous project management. 01:37:58.200 --> 01:38:00.440 And you can see between 2015 and 2017. 01:38:00.440 --> 01:38:03.720 So pre 2017, we talked about those silos. 01:38:03.720 --> 01:38:06.880 We talked about those poor project execution. 01:38:06.880 --> 01:38:09.080 Staff's really done a great job in the water utility 01:38:09.080 --> 01:38:11.120 and the finance department breaking down those silos 01:38:11.120 --> 01:38:13.160 and city-wide for that point. 01:38:13.160 --> 01:38:15.200 Some of the large projects for the wastewater utility 01:38:15.200 --> 01:38:17.720 is the Hicker Creek Interceptor 1 and 2, 01:38:17.720 --> 01:38:21.560 the Dry Fork Interceptor, the Elm and Locust Phase 2. 01:38:21.560 --> 01:38:23.640 And then current process post 2017 01:38:23.640 --> 01:38:24.680 as we talked about before, 01:38:24.680 --> 01:38:26.640 really just staff's continued focus on cost, 01:38:26.640 --> 01:38:28.320 containment, transparency, 01:38:28.320 --> 01:38:30.360 and emphasis on the city's core values. 01:38:30.360 --> 01:38:34.800 Project activities through wastewater utility. 01:38:34.800 --> 01:38:35.640 Similar to water, 01:38:35.640 --> 01:38:37.920 we do have some major projects identified here. 01:38:37.920 --> 01:38:41.280 The first one being the Teasley FM 2181 Text Not project, 01:38:41.280 --> 01:38:42.960 which I'm sure everybody's familiar with. 01:38:42.960 --> 01:38:44.600 The Hicker Creek Detention Facility, 01:38:44.600 --> 01:38:47.240 the Footward Drive Relocation I-35, 01:38:47.240 --> 01:38:50.000 the Hicker Creek Lift Station upgrades. 01:38:50.000 --> 01:38:51.880 And then really looking at that project activity, 01:38:51.880 --> 01:38:54.000 which is that spin and encumbered amount. 01:38:54.000 --> 01:38:56.960 In '16, '17, we had 114 million. 01:38:56.960 --> 01:39:00.040 In '19, '20, that increased from 158 million. 01:39:00.040 --> 01:39:02.560 And so the large increase you see between these years 01:39:02.560 --> 01:39:04.240 is mostly attributed to these projects 01:39:04.240 --> 01:39:07.080 that are listed here, four of them total. 01:39:07.080 --> 01:39:11.120 The five main categories for the wastewater utility, 01:39:11.120 --> 01:39:13.520 plant and CIP improvements, field service replacements, 01:39:13.520 --> 01:39:16.280 service projects, your state highway relocations, 01:39:16.280 --> 01:39:18.800 and those future projects that were included in the budget, 01:39:18.800 --> 01:39:22.320 and it'll be coming back to you at a future discussion. 01:39:22.320 --> 01:39:25.520 So same template, same table as in the water utility. 01:39:25.520 --> 01:39:27.000 We have about 10 projects listed 01:39:27.000 --> 01:39:28.960 under plant and CIP improvements. 01:39:28.960 --> 01:39:31.480 We did wanna talk in detail with you, 01:39:31.480 --> 01:39:32.920 two major projects here. 01:39:32.920 --> 01:39:34.960 The Clear Creek Basin Pump Station. 01:39:34.960 --> 01:39:36.760 This is a wastewater lift station construction 01:39:36.760 --> 01:39:38.560 to provide wastewater collection capacity 01:39:38.560 --> 01:39:41.720 in north of loop 288 in the Clear Creek Basin. 01:39:41.720 --> 01:39:43.200 This project will be completed 01:39:43.200 --> 01:39:46.240 in an estimated completion date of May of 2023. 01:39:46.240 --> 01:39:47.960 And the project will be fully funded 01:39:47.960 --> 01:39:49.560 in fiscal year 2022. 01:39:49.560 --> 01:39:52.240 So as you can see that project listed up here, 01:39:52.240 --> 01:39:54.400 you can see the EAC of 13 million, 01:39:54.400 --> 01:39:56.520 the current budget of 493, 01:39:56.520 --> 01:39:59.400 with 3 million coming in funding in 2021, 01:39:59.400 --> 01:40:01.440 and then the rest of it in 2022. 01:40:01.440 --> 01:40:03.320 A lot of times staff tries to implement this funding 01:40:03.320 --> 01:40:04.920 over multiple fiscal years 01:40:04.920 --> 01:40:07.920 to lessen the impact of rate payers in the water utility. 01:40:07.920 --> 01:40:08.760 And the second project 01:40:08.760 --> 01:40:10.840 will be the Hicker Creek lift station upgrade. 01:40:10.840 --> 01:40:14.120 This is replacement of aging wastewater lift stations 01:40:14.120 --> 01:40:16.280 to provide capacity and reliability. 01:40:16.280 --> 01:40:19.480 This project should be completed in December of 2020. 01:40:19.480 --> 01:40:20.480 Similar to water really quick, 01:40:20.480 --> 01:40:22.120 I do wanna point out to the public utility board, 01:40:22.120 --> 01:40:24.880 which is important, the impact fee eligible projects. 01:40:24.880 --> 01:40:27.280 You can't see a few of them here with asterisks 01:40:27.280 --> 01:40:29.680 of the West Weather Storage Facility, 01:40:29.680 --> 01:40:31.640 the Hicker Creek Detention Facility, 01:40:31.640 --> 01:40:33.320 and the Clear Creek Basin Pump Station 01:40:33.320 --> 01:40:35.240 that we talked about shortly ago. 01:40:35.240 --> 01:40:36.440 So we do look at those projects 01:40:36.440 --> 01:40:38.760 and apply the appropriate amount of impact fee funding 01:40:38.760 --> 01:40:39.600 each year. 01:40:39.600 --> 01:40:42.560 Filled service replacement, similar to water, 01:40:42.560 --> 01:40:44.640 these are cash funded projects 01:40:44.640 --> 01:40:46.280 that are budgeted from the operating funds, 01:40:46.280 --> 01:40:47.680 so ultimately funded from the rates. 01:40:47.680 --> 01:40:49.760 So we're not debt funding these replacement projects, 01:40:49.760 --> 01:40:51.440 we're actually cash funding them. 01:40:51.440 --> 01:40:52.840 And the first project I'm gonna discuss with you 01:40:52.840 --> 01:40:54.160 is the Holiday Park 2, 01:40:54.160 --> 01:40:55.480 which is a filled service replacement, 01:40:55.480 --> 01:40:56.920 that's what this stands for. 01:40:56.920 --> 01:40:58.360 It's a sewer main replacement project 01:40:58.360 --> 01:40:59.840 approximately 6,700 feet 01:40:59.840 --> 01:41:03.120 throughout the residential neighborhood of Holiday Park. 01:41:03.120 --> 01:41:06.680 This project should be completed in September of 2020. 01:41:06.680 --> 01:41:09.640 And the second one being Woodland and Cherrywood Sewer. 01:41:09.640 --> 01:41:11.320 This is sewer main replacement project, 01:41:11.320 --> 01:41:13.360 approximately 2,400 feet 01:41:13.360 --> 01:41:15.040 throughout this residential neighborhood. 01:41:15.040 --> 01:41:16.520 And similar, this would be completed here 01:41:16.520 --> 01:41:18.840 in the coming two months in November of 2020. 01:41:18.840 --> 01:41:26.080 Filled service replacement, this is continued. 01:41:26.080 --> 01:41:27.520 Going down the list here, 01:41:27.520 --> 01:41:28.440 I'll put on a couple of them, 01:41:28.440 --> 01:41:30.760 and Preetem can talk to these later if you have questions. 01:41:30.760 --> 01:41:31.600 We do have a couple of them 01:41:31.600 --> 01:41:33.760 with the yellow dot. 01:41:33.760 --> 01:41:35.240 So that yellow dot, just for your reference, 01:41:35.240 --> 01:41:37.360 I know it's different than the green one we've been seeing, 01:41:37.360 --> 01:41:39.120 but mean that there's some risk and opportunity 01:41:39.120 --> 01:41:41.120 in those projects. 01:41:41.120 --> 01:41:42.360 So he can address these in a little while 01:41:42.360 --> 01:41:44.560 if you'd like further information regarding these. 01:41:44.560 --> 01:41:45.640 But the first one I'll talk to you about 01:41:45.640 --> 01:41:48.000 is the Foxcroft Filled Service Replacement. 01:41:48.000 --> 01:41:49.680 This is water main replacement project, 01:41:49.680 --> 01:41:52.560 approximately 3,000 feet from Emerson to Old North. 01:41:52.560 --> 01:41:55.720 This project should be completed in December of 2020. 01:41:55.720 --> 01:41:59.440 And the next one being WWC, which is Amherst, 01:41:59.440 --> 01:42:02.400 which is the sewer main replacement approximately 2,100 feet 01:42:02.400 --> 01:42:04.000 from Georgetown to Hinkle. 01:42:04.000 --> 01:42:09.560 The service projects, those professional agreements 01:42:09.560 --> 01:42:11.080 are projects that we have out there 01:42:11.080 --> 01:42:13.080 for the wastewater utility. 01:42:13.080 --> 01:42:14.480 The first one we have listed 01:42:14.480 --> 01:42:16.760 is the border cowboy pump replacement. 01:42:16.760 --> 01:42:17.960 This is replacement of the pumps 01:42:17.960 --> 01:42:20.000 at the border cowboy lift station. 01:42:20.000 --> 01:42:22.560 And this project should be completed this coming May, 01:42:22.560 --> 01:42:26.520 but it depends on some text on I-35 widening schedule 01:42:26.520 --> 01:42:27.360 and impact. 01:42:27.360 --> 01:42:29.640 We are waiting to work with them on this project. 01:42:29.640 --> 01:42:31.160 The SCADA master plan, 01:42:31.160 --> 01:42:34.120 we are working to develop a master plan for SCADA system 01:42:34.120 --> 01:42:35.560 within the wastewater utility. 01:42:35.560 --> 01:42:37.520 We do plan that be submitted or completed 01:42:37.520 --> 01:42:40.120 about a year from now, September of 2021. 01:42:40.120 --> 01:42:43.400 The textile relocation, 01:42:43.400 --> 01:42:45.760 this project is part of water and wastewater both. 01:42:45.760 --> 01:42:47.200 So you can see the wastewater component 01:42:47.200 --> 01:42:49.160 is a little bit less than water. 01:42:49.160 --> 01:42:53.600 So 2.248 million, current budget is 480,000, 01:42:53.600 --> 01:42:55.640 but that additional funding coming in 2021 01:42:55.640 --> 01:42:58.640 of 1.7 million, and this was included in the budget 01:42:58.640 --> 01:43:00.040 that she recently approved. 01:43:00.040 --> 01:43:03.880 Those future projects, 01:43:03.880 --> 01:43:06.680 this is something you saw in the budgeting process 01:43:06.680 --> 01:43:07.920 and during those meetings we had 01:43:07.920 --> 01:43:10.320 and ultimately the budget you approved. 01:43:10.320 --> 01:43:15.240 There was a total of 40 million in the 2021 wastewater CIP. 01:43:15.240 --> 01:43:16.640 The slide below in these projects 01:43:16.640 --> 01:43:19.520 make up 29.9 million of those. 01:43:19.520 --> 01:43:20.360 Similar to water, 01:43:20.360 --> 01:43:23.760 we have group them into existing projects and new. 01:43:23.760 --> 01:43:25.560 So some of the major ones we've talked about 01:43:25.560 --> 01:43:27.640 before it was a Clear Creek Basin Pump Station 01:43:27.640 --> 01:43:29.480 of 3 million that you saw on that. 01:43:29.480 --> 01:43:31.440 I think it was a second or third slide 01:43:31.440 --> 01:43:33.680 and this additional funding that's coming into that project 01:43:33.680 --> 01:43:35.720 and the current approved budget. 01:43:35.720 --> 01:43:36.840 Moving down the slide a little bit, 01:43:36.840 --> 01:43:39.800 you can see that solids handling project of 8.3 million. 01:43:39.800 --> 01:43:40.640 So this is a new project. 01:43:40.640 --> 01:43:43.440 So we'll set this project up and this funding comes in. 01:43:43.440 --> 01:43:45.040 Let me get that project started. 01:43:45.040 --> 01:43:46.720 And then annual field service replacements. 01:43:46.720 --> 01:43:48.760 This is that amount we budget each year 01:43:48.760 --> 01:43:51.040 for that cash funding of those replacement jobs 01:43:51.040 --> 01:43:54.400 and existing streets or existing right of ways. 01:43:54.400 --> 01:43:55.960 We will bring back a detailed list 01:43:55.960 --> 01:43:58.880 of what this 2.6 makes up in January of 2021 01:43:58.880 --> 01:44:00.560 to the Public Utility Board. 01:44:00.560 --> 01:44:03.400 Then lastly, you can see that bond election of 2019 01:44:03.400 --> 01:44:04.760 coming back to the Public Utility Board 01:44:04.760 --> 01:44:06.360 in the spring of next year also. 01:44:06.360 --> 01:44:10.800 And then the detailed budget discussion in December. 01:44:10.800 --> 01:44:12.240 I'm having that consultant come back, 01:44:12.240 --> 01:44:14.280 go through the rate discussion with you 01:44:14.280 --> 01:44:15.960 in that model that's recently been developed 01:44:15.960 --> 01:44:17.600 with the water and wastewater utility. 01:44:17.600 --> 01:44:19.520 And then coming back to you on a quarterly basis 01:44:19.520 --> 01:44:21.360 with a project update. 01:44:21.360 --> 01:44:23.440 Then I will pull it down for questions. 01:44:25.240 --> 01:44:26.080 Questions? 01:44:26.080 --> 01:44:31.960 I don't think there are any. 01:44:31.960 --> 01:44:32.800 - Okay. 01:44:32.800 --> 01:44:35.080 And our last presentation is electric. 01:44:35.080 --> 01:44:38.120 I'll go through this one. 01:44:38.120 --> 01:44:41.080 Then same thing here. 01:44:41.080 --> 01:44:43.160 We have several staff present to address your questions. 01:44:43.160 --> 01:44:46.600 Chris Lutrix here, Jerry Filder, Terry Nolte. 01:44:46.600 --> 01:44:48.320 They can be happy to come up and address any questions 01:44:48.320 --> 01:44:50.720 that you have at the end of the presentation. 01:44:50.720 --> 01:44:54.160 So the groups for electric are a little bit different 01:44:54.160 --> 01:44:55.240 than water and wastewater. 01:44:55.240 --> 01:44:57.240 Our first one being distribution of substations 01:44:57.240 --> 01:45:00.080 with a large portion of their capital plan. 01:45:00.080 --> 01:45:01.400 I'll review that with you shortly. 01:45:01.400 --> 01:45:03.480 The next one being transmission lines. 01:45:03.480 --> 01:45:05.880 And then we have feeder extensions and improvements, 01:45:05.880 --> 01:45:07.840 new residential, street lighting, 01:45:07.840 --> 01:45:09.240 and then those future projects 01:45:09.240 --> 01:45:11.040 we discussed in water and wastewater. 01:45:11.040 --> 01:45:14.760 Previous process, a little bit different 01:45:14.760 --> 01:45:15.680 than water and wastewater. 01:45:15.680 --> 01:45:17.640 So previously the overall system transmission 01:45:17.640 --> 01:45:21.000 and distribution CIP was created. 01:45:21.000 --> 01:45:23.120 Consultants were utilized to manage the progress 01:45:23.120 --> 01:45:24.920 of CIP projects. 01:45:24.920 --> 01:45:28.000 Really the new process and moving forward here recently 01:45:28.000 --> 01:45:30.680 in the last few years, we have increased engineering 01:45:30.680 --> 01:45:34.400 and budgetary review of projects, need, cost, and timing. 01:45:34.400 --> 01:45:36.240 This is a perfect example, as Tony mentioned earlier 01:45:36.240 --> 01:45:38.920 in the meeting, the elimination of the EECL substation. 01:45:38.920 --> 01:45:42.040 This did save rate payers an estimated 17 million, 01:45:42.040 --> 01:45:44.280 which that discussion did come forward 01:45:44.280 --> 01:45:46.360 to the Public Utility Board and City Council. 01:45:46.360 --> 01:45:48.280 And then we had that comprehensive capital projects 01:45:48.280 --> 01:45:51.240 and planning implementation as part of that budgeting process. 01:45:54.120 --> 01:45:57.080 Project activity for the electric utility. 01:45:57.080 --> 01:46:02.080 So you can see in '16, '17, we had 237.5 million. 01:46:02.080 --> 01:46:06.280 In '19, '20, this increased to 312.7 million. 01:46:06.280 --> 01:46:08.920 So you can see a significant increase over these years 01:46:08.920 --> 01:46:11.360 as we've implemented and put some new substations 01:46:11.360 --> 01:46:13.600 and transmission lines in place. 01:46:13.600 --> 01:46:17.200 The six groups within the electric utility, 01:46:17.200 --> 01:46:20.080 you can see distribution substations, transmission lines, 01:46:20.080 --> 01:46:21.680 feeder extensions and improvements, 01:46:21.680 --> 01:46:23.440 new residential, street lighting, 01:46:23.440 --> 01:46:25.600 and those future projects I'll review with you. 01:46:25.600 --> 01:46:30.760 So the table for distribution substations, 01:46:30.760 --> 01:46:33.080 very top one, which we'll discuss in detail with you, 01:46:33.080 --> 01:46:36.040 is that Hickory Substation Construction Project. 01:46:36.040 --> 01:46:38.800 It does have an estimated completion date of 2023, 01:46:38.800 --> 01:46:40.840 which I think has been mentioned earlier in the meeting. 01:46:40.840 --> 01:46:43.760 The EAC is currently 34.7 million, 01:46:43.760 --> 01:46:45.920 but the current budget is 6.5. 01:46:45.920 --> 01:46:47.800 We do have anticipated funding, 01:46:47.800 --> 01:46:49.280 as we talked about in the budgeting process, 01:46:49.280 --> 01:46:54.280 coming up in 2021 at 32.1, and then $900,000 in 2022, 01:46:54.280 --> 01:46:56.600 which would fund this project. 01:46:56.600 --> 01:47:00.720 Then you can see Brinker and Underwood, 01:47:00.720 --> 01:47:03.320 which are some future projects that are out there also. 01:47:03.320 --> 01:47:07.920 Transmission lines, we have several of them listed here. 01:47:07.920 --> 01:47:10.120 The first one being the RD Wells to Hickory, 01:47:10.120 --> 01:47:11.480 transmission tie-in. 01:47:11.480 --> 01:47:14.520 This is the reroute of the transmission line of 138 KV. 01:47:14.520 --> 01:47:17.440 And then the Locust to Hickory transmission line, 01:47:17.440 --> 01:47:19.360 this is a rebuild of the transmission line 01:47:19.360 --> 01:47:21.280 that connects New Hickory Substation 01:47:21.280 --> 01:47:23.440 to the new Locust Substation. 01:47:23.440 --> 01:47:27.040 And this has completion date, December of 2022. 01:47:27.040 --> 01:47:29.520 And this project will be fully funded in 2023. 01:47:29.520 --> 01:47:31.560 So if you go back up to this list up here, 01:47:31.560 --> 01:47:34.440 you can see the Locust to Hickory Transmission Line Project 01:47:34.440 --> 01:47:36.680 fully being funded in 2023. 01:47:36.680 --> 01:47:41.720 Next one being your Hickory transmission, 01:47:41.720 --> 01:47:44.080 UG and OG reconfiguration, 01:47:44.080 --> 01:47:46.120 which is the reconfiguration of transmission lines 01:47:46.120 --> 01:47:48.400 entering the New Hickory Substation. 01:47:48.400 --> 01:47:51.400 And this project should be completed in December of 2023. 01:47:51.400 --> 01:47:58.440 New residential, so we have about five projects listed here. 01:47:58.440 --> 01:48:01.400 They all do have a green schedule indicator. 01:48:01.400 --> 01:48:04.800 The first one being your DHS campus phase one. 01:48:04.800 --> 01:48:07.240 This was the extend the electric facilities for feeders 01:48:07.240 --> 01:48:09.360 to tie into the Bronco way to provide service 01:48:09.360 --> 01:48:10.920 to the new Denton High School. 01:48:10.920 --> 01:48:12.520 This project was recently completed, 01:48:12.520 --> 01:48:13.720 but we didn't wanna bring it to your attention 01:48:13.720 --> 01:48:15.760 that that has been completed. 01:48:15.760 --> 01:48:19.160 The next one being your pros, your Windsor Apartments, 01:48:19.160 --> 01:48:21.480 which is the extend electric facility 01:48:21.480 --> 01:48:25.760 to 330 new unit apartment complex at Windsor and I-35. 01:48:25.760 --> 01:48:28.880 Estimated completion date is this coming December, 01:48:28.880 --> 01:48:30.120 so in a couple of months. 01:48:30.120 --> 01:48:33.080 And the next one is street lighting. 01:48:33.080 --> 01:48:34.040 So this is something we mentioned 01:48:34.040 --> 01:48:35.600 to the Public Utility Board and City Council 01:48:35.600 --> 01:48:37.040 during the budgeting process. 01:48:37.040 --> 01:48:39.600 So the priorities set forward by both. 01:48:39.600 --> 01:48:41.200 So we have grouped the street lighting projects 01:48:41.200 --> 01:48:42.880 into three different categories, 01:48:42.880 --> 01:48:45.240 but the first two have an amount budgeted. 01:48:45.240 --> 01:48:47.000 The first one being existing street lighting 01:48:47.000 --> 01:48:48.760 and LED upgrade. 01:48:48.760 --> 01:48:53.360 We currently have 1 million EAC for this project. 01:48:53.360 --> 01:48:54.680 Let me go back. 01:48:54.680 --> 01:48:57.560 With 2021, that 1 million coming in and funding. 01:48:57.560 --> 01:49:00.040 And the additional residential LED lighting, 01:49:00.040 --> 01:49:03.280 currently 3.7 million EAC. 01:49:03.280 --> 01:49:06.520 You can see 3.7 million coming in in 2021 01:49:06.520 --> 01:49:08.160 and in each of the future years. 01:49:08.160 --> 01:49:13.760 Some future projects that are coming up. 01:49:13.760 --> 01:49:15.200 And there's actually two slides in electric 01:49:15.200 --> 01:49:16.440 to talk about future projects. 01:49:16.440 --> 01:49:18.600 The first one being the I-35 East relocation 01:49:18.600 --> 01:49:20.640 between Mayhill and Loop 288. 01:49:20.640 --> 01:49:23.240 Estimated cost of this project is 1 million. 01:49:23.240 --> 01:49:27.040 And estimated completion is October of 2021. 01:49:27.040 --> 01:49:29.200 Bonnie Brafe's phase four relocation 01:49:29.200 --> 01:49:33.480 between US 380 and US 77. 01:49:33.480 --> 01:49:35.520 Estimated cost is 500,000 01:49:35.520 --> 01:49:38.440 with the completion date of July of 2021. 01:49:38.440 --> 01:49:39.520 Skipping down the page a little bit, 01:49:39.520 --> 01:49:41.480 you can see the Kings Ridge phase one, 01:49:41.480 --> 01:49:43.520 which is 130 lot residential development 01:49:43.520 --> 01:49:44.880 in Toronto Way. 01:49:44.880 --> 01:49:47.880 Estimated cost of this project is 250,000 01:49:47.880 --> 01:49:51.040 with an estimated completion of September of 2021. 01:49:51.040 --> 01:49:55.120 And then we'll continue to bring these back to you. 01:49:55.120 --> 01:49:58.480 Actually at that next quarterly update in January, 01:49:58.480 --> 01:50:01.080 we'll touch on these projects a little bit more with you. 01:50:01.080 --> 01:50:02.120 Future project summary. 01:50:02.120 --> 01:50:04.560 So the 2021 CIP for the electric utility 01:50:04.560 --> 01:50:07.600 included 65 million in projects. 01:50:07.600 --> 01:50:09.960 The six projects listed here below 01:50:09.960 --> 01:50:13.080 make up 55.8 of those projects. 01:50:13.080 --> 01:50:13.920 As we talked about, 01:50:13.920 --> 01:50:15.280 you got the distribution substations 01:50:15.280 --> 01:50:17.480 of 6.8 million coming in, 01:50:17.480 --> 01:50:19.800 which is an existing project that we reviewed. 01:50:19.800 --> 01:50:21.440 Your feeders, extensions and improvements, 01:50:21.440 --> 01:50:24.960 9.45 million, which is existing projects. 01:50:24.960 --> 01:50:26.280 And then the street lighting 01:50:26.280 --> 01:50:27.960 that we talked about with 3 million. 01:50:27.960 --> 01:50:28.960 If you notice on the slide, 01:50:28.960 --> 01:50:31.320 it actually said 3.6, if I'm not mistaken, 01:50:31.320 --> 01:50:33.200 that through 600,000 additional funding 01:50:33.200 --> 01:50:34.280 into existing funding, 01:50:34.280 --> 01:50:36.640 the staff will be reallocated to this purpose. 01:50:36.640 --> 01:50:38.000 So this 3 million will be coming in 01:50:38.000 --> 01:50:40.600 in addition to that reallocation of funds. 01:50:40.600 --> 01:50:43.920 Transmission line of 12 million, 12.1 million, 01:50:43.920 --> 01:50:47.000 and then transmission substations of 20.7. 01:50:47.000 --> 01:50:50.440 And then this is the detailed budget 01:50:50.440 --> 01:50:52.080 and rate discussions coming up in December. 01:50:52.080 --> 01:50:54.240 And then the next quarterly financial project update 01:50:54.240 --> 01:50:56.080 will be in January, 2021. 01:50:56.080 --> 01:50:58.960 That concludes electric. 01:50:58.960 --> 01:51:01.480 And I will pull it down for questions, Susan. 01:51:01.480 --> 01:51:02.720 - Any questions? 01:51:02.720 --> 01:51:07.200 I don't see any. 01:51:07.200 --> 01:51:10.160 What do you need from us? 01:51:10.160 --> 01:51:11.200 - No direction, Susan. 01:51:11.200 --> 01:51:14.040 This was simply an update based at PUV's request 01:51:14.040 --> 01:51:14.880 of getting that. 01:51:14.880 --> 01:51:16.720 I think we had a couple of requests for it in the past. 01:51:16.720 --> 01:51:18.600 So this will come back to the public utility board 01:51:18.600 --> 01:51:19.520 on a quarterly basis. 01:51:19.520 --> 01:51:21.000 We just wanted to get the template in front of you 01:51:21.000 --> 01:51:22.120 and get your feedback today. 01:51:22.120 --> 01:51:24.160 So that's all we needed. 01:51:24.160 --> 01:51:25.000 - Thank you. 01:51:25.000 --> 01:51:27.120 All right then. 01:51:27.120 --> 01:51:29.760 I will call us back into open session. 01:51:29.760 --> 01:51:35.640 And then we need a motion to adjourn into our closed session. 01:51:35.640 --> 01:51:37.160 Is that correct, Larry? 01:51:38.400 --> 01:51:41.640 - No, actually what we'll do is you will just, 01:51:41.640 --> 01:51:43.240 you'll just go into closed session 01:51:43.240 --> 01:51:45.200 and then we'll need to come back into open session. 01:51:45.200 --> 01:51:46.040 - Come back in and then go in. 01:51:46.040 --> 01:51:47.840 - From closed to adjourn, yes. 01:51:47.840 --> 01:51:50.080 Yeah, we're just, and to let everybody know, 01:51:50.080 --> 01:51:51.960 we're just doing the same thing council is doing. 01:51:51.960 --> 01:51:53.000 So we're having all the boards 01:51:53.000 --> 01:51:55.320 and commissions follow the same path. 01:51:55.320 --> 01:51:56.160 - That's fine. 01:51:56.160 --> 01:51:58.040 Just keep me doing what I'm supposed to do. 01:51:58.040 --> 01:51:59.720 - Okay. 01:51:59.720 --> 01:52:02.120 - All right, we will adjourn into closed session. 01:52:02.120 --> 01:52:04.880 - And Susan. 01:52:09.000 --> 01:52:10.160 - All right, Susan. 01:52:10.160 --> 01:52:11.000 - All right. 01:52:11.000 --> 01:52:11.840 And we're back. 01:52:11.840 --> 01:52:13.480 We are adjourning the closed meeting 01:52:13.480 --> 01:52:15.800 and going back into open session. 01:52:15.800 --> 01:52:20.520 At this point, do we have a motion to adjourn our meeting? 01:52:20.520 --> 01:52:21.360 - So moved. 01:52:21.360 --> 01:52:22.200 - Second. 01:52:22.200 --> 01:52:25.560 - Second, all in favor, aye. 01:52:25.560 --> 01:52:26.400 - Aye. 01:52:26.400 --> 01:52:29.880 - Okay, we are adjourned, 1120. 01:52:29.880 --> 01:52:30.720 - Thanks.